ML20062A677
| ML20062A677 | |
| Person / Time | |
|---|---|
| Site: | 05000471 |
| Issue date: | 09/27/1978 |
| From: | Howard J BOSTON EDISON CO. |
| To: | |
| Shared Package | |
| ML20062A664 | List: |
| References | |
| NUDOCS 7810170164 | |
| Download: ML20062A677 (292) | |
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3~' , BDaTON EDISQN COMPANY /] t 500 ScvLsTON STRECT SOSTON, MAESACMUSEMS Q2199 J.EDWARO hOWARD viss messios=v
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September 27, 1978 L i Director Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission I Washington, D. C. 20555 l 0; General and Financial Amendment No. 9 b To License Application Filed l: L December 21, 1973 (Docket No. 50-471) { t i.
Dear Sir:
l' Pursuant to the Atomic Energy Act of 1954, as ame,nded and the Commission's Rules and Regulations issued thereunder, Boston Edison Company hereby supplements and amends the License Application (General and Financial) filed December 21, 1973, by supplying Amendment No. 9. ,, This revision contains all of the data missing from the previous amend- ! ment - the general and financial information for the Electric Department ! of the City of Burlington, Vermont and the balance of Joint Dwner annual ! reports. In addition, this amendment provides the responses to your letter ,, of August 16, 1978 requesting additional information from several co- ll applicants including a complete review of the latest rate order proceedings ; for all co-applicants. This transmittal consists of three (3) signed originals and 15 copies. b i Respectfully submitted,
/s/ J. Edward Howard '
Vice President-Nuclear i lD
1 . CD; TON EDICON COMPANY Director 2. September 27, 1973 Commonwealth of Massachusetts) County of Suffolk ) ; Then personally appeared before me J. Edward Howard, who being ' duly sworn, t uid state that he is Vice President-Nuclear of Boston Edison Company, an ; applicant herein, that he is duly authorized to execute the foregoing Amendment in the name and on behalf of Boston Edison Company and the i other applicants herein and that the statements in said Amendment are true to the best of his knowledge and belief. p
/s/ Dorothy M. Lopes Notary Public I
My Commission Expires: July 26,1984 N h l Distribution list Attached > l 1 f f b 5 6 m O &
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O WD5 TON EDI5QN COMPANY Director , 3. September 27, 1973 cc: Director Inspection and Enforcement, Region I U. 5. Nuclear Regulatory Commission 631 Park Avenue King of Prussia, Pennsylvania 19406 R. M. Butler Nuclear Projects Manager Boston Edison Company 800 Boylston Street Boston, Massachusetts 02199 W. M. Sides Quality Assurance Manager Boston Edison Company 800 Boylston Street Boston, Massachusetts 02199 D. G. Stoodley, Assistant General Counsel Boston Edison Company 800 Boylston Street , Boston, Massachusetts 02199 W. R. Griffin Project Engineer Boston Edison Company ; 800 Boylston Street Boston, Massachusetts 02199 John D. Fassett, President ' United Illuminating Company 80 Temple Street New Haven, Connecticut 06506 W. C. Ta11mann, President Public Service Company of New Hampshire l 1000 Elm Street - Manchester, New Hampshire 03105 ' George H. Lewald, Esq. Ropes & Gray 22S Franklin Street , Boston, Massachusetts 02110 i Robert C. Young, Superintendent l Electric Department of the City of Burlington _ S85 Pine Street ! Burlington, Vermont 05401 l
BOSTON EOISDN COMPANY l Director 4. September 27, 1978 R. E. Newman Combustion Engineering, Inc. 1000 Prospect Hill Road Windsor, Connecticut 060,6 B. N. Pusheck ! Bechtel Power Corporation Post Office Box 3965 San Francisco, California 94119 E. W. Thurlow, President Central Maine Power Company 9 Green Street , Augusta, Maine 04332 Mr. William R. Bisson, Vice President Montaup Electric Company ' Post Office Box 2333 Boston, Mass. 02107 Mrs. Joan Bok New England Power Company Turnpike Road Westboro, Mass. 01581 ' Mr. R. W. Feragen, General Manager t Mass. Municipal Wholesale Electric Co. Post Office Box 426 Ludlow, Massachusetts 01056 Mr. J. E. Griffin, President : Central Vermont Public Service Corp. 77 Grove Street Rutland, Vermont 05701 i Mr. Howard Evirs, President Fitchburg Gas & Edison Light Company
- 555 Main Street Fitchburg, Mass. 04120
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Mr. G. E. Anderson, President New Bedford Gas & Edison Light Company 130 Austin Street
, Cambridge, Mass.
Mr. Horst Heuhmer, Manager , Hudson Light & Power Department 49 Forest Avenue Hudson, Mass. 01749
O BOSTON EoisON COMPANY
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Director 5. September 27, 1978 Mr. John P. Gonzals Taunton Municipal Lighting Plant Post Office Box 870 55 Weir Street Taunton, Mass. 02780 Mr. William J. Gallagher Vermont Electric Cooperative, Inc. Johnson, Vermont 05656 Plymouth Public Library Boston Edison Company Reading Room I 1
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.;\ . -/'7f PILGRIM UNIT 2 GENERAL AND FINANCIAL INFORMATION AMENDMENT NUMBER 9 September 27, 1978 l
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f ( INSTRUCTION LETTER Pilgrim Station Unit 2 License Application (General and Financial) Amendment 9, September 27, 1978 The change pages included in this Amendment comprise general update information and revisions to respond to NRC requests for , information. Instructions for removing and replacing pages are included below. After the replacement pages have been inserted, insert the new t Title Page, the Transmittal Letter a*' this Instruction Letter at the
!- front of Volume I.
Remove Insert Table of Contents e 11 . ii ! Section II 1 II-35 . II-35 ' Section V V-1 V-1 ' j Section VI ; V1-b-1 Vl-b-1 l I, V1-c-1 Vl-c-1 i ! Vl-c-3 thru Vl-e-6 Vl-c-3 thru V1-c-6 : Vl-c-9 4 , f Vl-d-l Vl-d-l 4 Vl-d-3 Vl-d-3 l Vl-d-7 Vl-d-7 i Vl-e-1 V1-e-1 1 i V1-e-9 Vl-e-9 i l Instructions-1 i
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AMENDMENT 9 September 27, 1978 Section VI (Cont.) Remove Insert Vl-g-1 Vl-9-1 i Vl-h-1 thru Vl-h-3 Vl-h-1 thru Vl-h-3 Vl-h-9 Vl-h-9 Vl-i-1 Vl-i-1 V1-i-4 and V1-i-5 V1-i-4 and V1-i-5 ! V1-i-7 Vl-i-7 V1-j-1 Vl-j-1
)
V1-j-12 Vl-j -12 V1-L-1 Vl-L-1 thru V1-L-4 V1-m-1 V1-m-1 Vl-0-1 Vl-o-1 V1-0-4 V1-o-4 I i Section VII VII-l yy1_1 [ t Signatures to Application i Add: ; i Vermont Electric Cooperative, Inc. i Central Maine Power Company Exhibit Volumes , (for Amendment 8) l l' Remove list of Exhibits (Five Uhnur.bered pages from the i thru v (Volume 1) i thru v (Volume 2) front of Exhibit Volumes 1 and 2) ' i Instructions-2 , t
AMENDMENT 9 September 27, 1978 I Exhibit Volumes (Cont.) t (for Amendment 8) l Remove Insert Title page for Exhibit 8-6 Title page for Exhibit 8-6 Titles page for Exhibit 8-9 Title page for Exhibit 8-9
---- Exhibit 8-9 Title page for Exhibit 8-15 Title page for Exhibit 8-15 Exhibit 8-15 t Title page for Exhibit 8-16 Title page for Exhibit 8-16 Exhibit 8-16 Title page for Exhibit 8-17 Title page for Exhibit 8-17 Exhibit 8-17 Title page for Exhibit 8-18 Title page for Exhibit 8-18 Exhibit 8-18 Exhibit 8-54 Exhibit 8-54 Exhibit 8-74 Exhibit-8-74 ,
-> Title page for Exhibit 8-86 Title page for Exhibit 8-86 Title page for Exhibit 8-88 Title page for Exhibit 8-88 , Title page for Exhibit 8-89 Title page for Exhibit 8-89 Instructions-3
i f I AMENDMENT 9 : September 27, 1978 l i Section Page -
- j. The United Illuminating Company VI-j-1
- k. Town of Hudson Light and Power Department VI-k-1 i
' l. The Elect: .c Dept. of the City of Burlington, l , Vermont VI-1-1 t
- m. Vermont Electric Cooperative, Inc. VI-m-1 [
- n. Taunton Municipal Lighting Plant VI-n-1 ;
- o. Massachusetts Municipal Wholesale Electric Co. VI-o-1 I l
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i i ! t 1 i ii i i _- _ ,y -- --..+s ._ _ - - , , , , . ~ - . , . _ . _ . _ . , _ . . - , , . - , . - - - , _ _ - . . - - - . - ~ -
7 AMENDMENT 9 l September 27, 1978 ;
- 1. Burlington Electric Department 8,9
- City of Burlington, Vermont Electric Department 585 Pine Street Burlington, Vermont 05401 l
The Burlington Electric Department is a municipal electric ( i . utility with generation capacity, furnishing electric power to the
- City of Burlington, Vermont, in its entirety, under a City Chapter.
A description of the Department is provided in the Annual Report for 1977, attached as Exhibit 8-15. The names and addresses of the Department's officials are ; J
.as follows:
, c Commissioners ' Name Address James J. Ritchie Appletree Point Burlington, Vermont 05401 l
- Joseph E. Corbett 105 Overlake Park Burlington, Vermont 05401 ;
. Mark B. O'Brien 93 Brookes Avenue ! Burlington, Vermont 05401 i Jonathan K. Woods 191 South Cove Road i Burlington, Vermont 05401 i Margaret A. Hartigan 23 Hickok Place Burlington, Vermont 05401 Superintendent f Name Address ! Robert C. Young 153 Green Acres Drive Burlington, Vermont 05401 l II-35
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i 4 l AMENDMENT 9 September 27, 1978 j 3,9 V. Cost Estimates
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The applicants estimate'that the total cost of Pilgrim Unit 2 will be as follows: PILGRIM UNIT 2 * (Millions of Dollars) ; i Direct t and Total w/o Category Indirect Contingency Escalation AFUDC AFUDC Total Nuclear Plant 809 134 267 1210 685 1895 : Transmission ,
& Switching 17 -
2 19 3 22 ! Site & Common (incl. ! Facili. 26 - - 26 above) 20 ! Initial Fuel 44 - 20 64 30 94 i Total 896 134 289 1319 718 2037 i i Assumes commercial operation December 1985 i 4 I i 1 7 4 5 k S V-1 l
i __r AMENDMENT 9 September 27, 1978
- b. Central Maine Power Company 6,7, ,
8,9 ' (1) Sourceslof Funds Central Maine Power Company's percentage of project owner- , I ship and percentage of cost is 2.85%. The cost of its percentage 5 participation in the nuclear plant and initial fuel and the total of l these including allowance for funds ased during construction (AFUDC), L contingency and escalation is as follows: f PILGRIM UNIT 2 - CENTRAL MAINE POVER COMPANY ESTIMATE ' (Millions of Dolltrs) Total Direct & w/o l Category Indirect Contingency Esca).ation AFUDC AFUDC Total , Nuclear Plant 23.06 3.82 7.61 34.49 19.0 53.49 Site & Common (Incl. - 3 Facilities 0.74 - - 0.74 above) 0.74 l Initial Fuel 1.25 - 0.57 1.82 1.0 2.82 Total 25.05 3.82 8.18 37.05 20.0 57.05 The Sources of Funds Statement (Table VI-b-1) lists the i estimated yearly expenditures for Central Maine Power's portion of the Pilgrim 2 plant construction or acquisition of property, plant and facilities. This table also lists the various sources and ! estimated amounts of internal and external funds that will be employed by Central Maine Power to finance the above construction , expenditures. The assumptions included in the Sources of Funds t Statement are listed in Table VI-b-2. Table VI-b-3 summarizes construction expenditures antici-pated for the years 1978 through 1985. VI-b-1
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l AMENDMENT 9 September 27, 1978 i I
- c. Central Vermont Public Service Corporation 6,7, 8,9 ;<
(1) Sources of Funds i Central Vermont Public Service Corporation's percentage of project ownership and percentage of cost is 1.78%. The cost of its l 4 percentage participation in the nuclear plant and initial fuel and the total of these including allowance for funds used during construc-I tion (AFUDC), contingency and escalatica is as follows: PILGRIM UNIT 2 - CENTRAL VERMONT P.S. CORP. ESTIMATE I (Millions of Dollars) Total Direct & w/o - Category Indirect Contingency Escalation AFUDC AFUDC Total i Nuclear Plant 14.40 2.39 4.75 21.54 1.72 23.26 i Site and Common (incl'. Facilities 0.46 - - 0.46 above) 0.46 , Initi ~ Fuel 0.78 - 0.36 1.14 .09 1.23 Total 15.64 2.39 5.11 23.14 1.81 24.95 The Sources of Funds Statement (Table VI-c-1) lists the estimated yearly expenditures for Central Vermont Public Service ; Corporation's portion of the Pilgrim 2 plant construction or acquisi- t i tion of property, plant and facilities, in addition to expenditures for all of Central Vermont!s Construction or acquisition of property, plant and facilities. This table also lists the various sources and estimated amounts of internal funds that will be employed by Central - Vermont Public Service to finance the above construction expenditures. The assumptions included in the Sources of Funds Statement. are listed in Table IV-c-2. VI-c-1
l ,2 , AMENDMENT 9 September 27, 1978 '
-Financial statistics for the years 1976 and 1977 are given in Table VI-c-4.
(2) Officer's Certificate i Exhibits 8-37 and 8-38 provide Officer's Certificates for the recent morts'ge and bond offering of October 5, 1977. Exhibits 1 i 8-39 and 8-40 are extracts from the Company's Mortgage Indenture defining bonds issuable and net earnings requirements. Exhibit 8-41 provides calculations of interest coverage tests for the most recent 12-month period ending September 30, 1977.
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(3) Rate Relief Action i Exhibit 8-42 is a copy of the Company's latest rate relief action. Table 5I-c-5 provides a summary,of recent rate developments. ] (4) Preferred Stock Coverage Requirements l Exhibit 8-43 is a copy of the Company's most recent prospectus, dated May 3, 1977. The Company's Articles of Associa-tion defining the issuance test for preferred stock is provided in Exhibit 8-44. . A copy of a calculation indicating the amount of preferred stock which would be issuable based on net earnings requirements for the 12 months ended August 31, 1977, assuming an interest rate of ! 9.5% on such perferred stock is given in Exhibit 8-45. ; 1 (5) Annual Report -. The most recent certified consolidated financial statements of Central Vermont Public Service Corporation and its wholly-owned ! subsidiary Connecticut Valley Electric Company, Inc. are included in its Annual Report for 1977, attached as Exhibit 8-3. VI-c-3
i e i TABLE VI-c-1 CENTRAL VERHONT PUBLIC SERVICE CORPORATION Nuclear Plant: P g ria Unit 2 Projected Sources of. Funds fos System-Wide Construction Eagnd i t u r e s During Period of Construction of Subject Nuclear Power Plant (million of dollars: 000.0) Construction Tears of Subject Nuclear Power Plant l 1978 1979 1980 1981 1987 1983 1984 1985 i Security issues and other funds Common Stock $ .5 $ 5. 7 $ .8 $ 6.9 $ 1.1 $ 1.1 $ 6.2 ? 1.4 Preferred Stock - - 5.0 - 9.0 - 7.0 - Long-Tern Debt 10.0 15.0 9.0 14.0 11.0 14.0 13.t 16.0 Notes Payable ( 4. 8) 1.2 5.6 (1.9) (1. 4) 2.4 ( 9 . 7) '4.1) Total 11.7 15.9 20.4 19.0 19.7 17.5 16.5 73.3 . Less: Sinking Funds. Debt Maturities and calls ( 3.8) ( 2. 3) (3.9) (3. 9) /3.4) (2.7) (5.9) (3.0) ,
$ Net Outside Funds 7.9 13.6 16.5 15.1 16.3 14.8 10.6 10.3 I
O Internal Funds 8
,t.
Retained earnin g Net income $ 8.4 $ 9.2 $10. 3 $11.5 $13.0 Less:
$14.2 $15.9 $17. 8 Preferred dividends 2.0 1.8 1.8 1.9 2.2 2.5 2.8 3.1 '
Common dividende 4.1 4.7 5.4 6.0 6.J 7.2 7.9 8.6 Retained Earnings 2.3 2.7 3.1 3.6 4.1 4.5 5.2 6.1 Deferred Taxes .7 .7 1.0 1.0 2.4 1.2 3.6 1.1 Depr. & Amortization 3.3 3.5 3.8 4.1 4.4 5.3 5.7 7.2 Working Capital Reg. .2 5.6) (1.1) ( .9) (.2> .3 .6 (A AFDC other ( . 4) (". 4) ( . 4) ( . 4l> (.4) (.4) () g .,4) 0)
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Total Internal 6.1 5.1 p 6.4 7.4 10.3 10.9 13.1 14.7 m TOTAL FUNDS 14.0 18.7 22.9 22.5 26.6 25.7 23.7 25.0 g Construction Expenditures
- h Nuclear Power Plants $ 8.8 $ 9.8 $ 10.1 $'10.5 $11.1 $11.3 $11,9 NZ Other 5.2 9.1 12.9 $10.6 12.0 15.5 14.5 Total Subject Nuclear Plant 14.0 18.9 23.0 22.5 26.6 25.8 11.8 23.7 14.3 24.9
[htil 1.84 1. 74 3.1 3.4 3.5 2.77 1.83 1.41 PZ
- Exclusive of AFDC A11ovence *
-4 CD MD
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-, AMENDMENT 9 September 27, 1978 TABLE VI-c-2 ASSUMPTIONS INCLUDED IN PILGRIM 2 SOURCES OF FUNDS SCHEDULE i ITEM NO. 2 A. Assumed rate of return on average common stock equity equals 12.0% in 1978 and increases .30% annually through 1985 to 14.0%.
I B. Preferred stock dividend rate equal to 10% in 1978, 9.7% l in 1979, 9.5% in 1980, 9.2% in 1981, 9.0% thereafter. l C. Long terms debt interest rate equals 9.5% in 1978 ; declining .25% annually to 8.5% in 1982. 8.5% thereafter. . Short term debt interest rate average of 7% throughout ; the period. l D. Common stock is offered annually under the dividend reinvestment plan. In addition, public offerings are planned for 1979, 1981, and 1984. Market to book ratios ! are as follows: l 1978 .812 1982 - .943 l 1979 .834 1983 .944 1980 - .869 1984 - .945 1981 .915 1985 .936 l i
- E. Common stock dividend payout ratios are as follows:
1978 - 64.2 1982 - 62.1 1979 - 63.2 1983 - 61.2 1980 - 63.1 1984 - 60.0 ! 1981 - 62.7 1985 - 58.6 F. Target capital structure for all years is 45% debt, 15% preferred, 40% common equity i l l VI-c-5
i i AMENDMENT 9 September 27, 1978 TABLE VI-c-2 (cont.) i G. SEC interest coverage calculations over the period of construction are not available. The most restrictive indenture coverage covenant is contained in the company's debenture indenture and the coverages for the years 1977-1982 under that debenture covenant are as follows: 1978 - 3.74 1982 - 3.28 : 1979 - 3.40 1983 - 3.19 ' 1980 - 3.26 1984 - 3.19 l 1981 - 3.26 1985 - 3.31 ' H. Annual growth rates and Kwh sales are: , i Growth Rate Kwh Price 1978 3.8% 4.38C 1979 3.9% 4.53c 1980 3.9% 4.84c : 1981 4.0% 5.09c 1982 3.6% 5.41c 1983 2.6% 5.76C 1984 3.7% 5.99C 1985 1.7% 6.47C i s h VI-c-6
l AMENDMENT 9 September 27, 1978 TABLE VI-c-5 CENTRAL VERMONT PUBLIC SERVICE CORPORATION . RATE DEVELOPMENTS E_lectric Gas Steam Granted (Electric Only) Annual amount requested - test year basis (000's) Date requested Annual amount granted - test year basis (000's) None since 1975 Percent increase Effective date Rate of return on rate base authorized Revenue Effect (0000's) Amount received in year granted Amount received in subsequent year None since 1975 Pending Requests Amount (000's) S9,881 CS8,651 net of; ' Percent increase 18.6%(1) 416.3% fuel : Date filed 8/15/78 Date by which decision must be issued No date Rate of return on rate base requested 10.6% Rate of return on common equity requested 14.5% (1) 12% increase placed in effect under bond 12/20/78 VI-c- 9
AMENDMENT 9 September 27, 1978
- d. Fitchburg Gas & Electric Light Company 6,7 .
8,9 t (1) Sources of Funds Fitchburg Gas and Electric Light Company's percentage of project ownership and percentage of cost is 0.19%. The cost of its l a percentage participation in the nuclear plant and initial fuel and [ the total of these including allowance for funds used during con-struction ( A]FUDC) , contingency and escalation is as follows: PILGRIM UNIT 2 - FITCHBURG G&EL. LIGHT CO. ESTIMATE i (Millions of Dollars) ! Total Direct & w/o Category Indirect Contingency Escalation AFUDC AFUDC Total Nuclear Plant 1.54 0.25 0.51 2.30 1.22 3.52 Site & Common . (incl. Facilities 0.05 - - 0.05 above) 0.05 Initial Fuel 0.08 - 0.04 0.12 0.07 0.19 Total 1.67 0.25 0.55 2.47 1.29 3.76 The Sources of Funds Statement (Table VI-d-1) lists the estimated yearly expenditures for FG&EL's portion of the Pilgrim 2 1 plant construction or acquisitign of property, plant and facilities, in addition to expenditures for all of FG&EL's construction or i acquisition of property, plant and facilities. Table VI-d-l also lists the various sourecs and estimated amounts of internal and external funds that will be employed by FG&EL to finance the above construction expenditures. The assumptions in-cluded in the Sources of Funds Statement are listed in Table VI-d-2. I VI-d-l
AMENDMENT 9 September 27, 1978 (3) Rate Relief Action A summary of the most recent rate action effects is pro- I vided as Table VI-d-4 and a copy of the rate order and its supple-l mental order are included as Exhibits 8-49 and 8-50. (4) Preferred Stock Coverage Requirements Enclosed as Exhibit 8-51 is a copy of a portion of the Company's bylaws related to preferred stock coverage requirements. Enclosed as Exhibit 8-52 is a schedule showing the preferred stock coverage for the twelve months ending December 31, 1977. Exhibit 8-53 is a statement detailing all other restrictions on the issuance of additional debt and equity not .previously provided. 1 (5) Annual Report Further information regarding the financial condition of , i FG&EL and its construction program is furnished in the Company's annual report for 1977 attached as Exhibit 8-4. ; I l 4 e 1 5 1
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VI-d-3
AMENDMENT 9 l September 27, 1978 L FITCHEURG GAS AND ELECTRIC LIGHT COMPANY RATE DEVELOPMENTS l Granted Electric Gas Steam ! Annual amount requested - test year basis (000's) $2,795 S 833 N Date Requested 2/14/77 2/14/77 0 , Annual amount granted - test year basis (000's) $1,535* $ 554 T ; Percent increase in base rates 13% 14% ; Effective Date 8/31/77 8/31/77 A Rate of Return on Rate Base Authorized 10.05% 10.05% P ! P i I
, L Revenue Effective (000's) I ;
C i Estimated Amount to be Received in Year Granted S 400 $ 150 A Estimated Amount to be Received in Subsequent Year $1,535 $ 554 B i L [ E Pending Requests None [ t
- On February 14, 1977, the Company filed with the Massachusetts Department ,
of Public Utilities (DPU) revised rates designed to increase electric revenues by $2,795,000 and gas revenues by $838,000, which proposed rates were suspended. ; In accordance with an order of the DPU dated August 31, 1977, and the supplemental i order thereto dated September 15, 1977, the Company was allowed to file new rates designed to produce annually an additional $1,062,109 in electric revenues and. i
$533,734 in gas revenues. 6 On September 15, the Company appealed this rate decision to the Supreme >
Judicial Court of Massachusetts (SJC), and on October 21 the SJC granted the Company's request for a stay. This stay allows 'the Company to collect an ' c4ditional $472,831 in annual electric revenues, subject to refund if the Company does not prevail in its appeal. On June 30, 1978, the SJC issued its order remanding the case to the County court where an order was entered directing further consideration and decision by the DPU consistent with the SJC opinion. The stay heretofore granted is to remain in effect until further order of the county court. In i its opinion, the SJC affirmed a directive by the DPU in its August 31, 1977 ; order, whereby the Company was instructed to reflect amortization of a retired unit with a net book value of $512,828 commencing January, 1976. The Company had commenced amortization of this unit in September, 1977, subsequent to the ; DPU's August 31, 1977 order. As a result, the Company has recorded such amortization for 1976 and 1977 in such years, which has reduced net income ! in those years by $104,800 and $67,971 respectively. ! Additionally, the SJC's opinion upheld the DPU's order that the Company retire a 21 megawatt generating unit which has a net book value of approximately
$2.2 million. The opinion, however, requires further consideration by the DPU ;
as to the applicable amount of revenue coverage pursuant to such abandonment. The Company cannot determine when the DPU will complete its decision l making as ordered by the SJC on this latter item. The effect will be to 4 increase its permanent rates for electric service. The impact on the ' Company's financial statements is not known at this time. l l VI-d-7 !
< l AMENDMENT 9 i september 27, 1978 J i
- e. Montaup Electric Company 6,7, i
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8,9 (1) Sources of Funds Montaup's percentage of project ownership and cost is 2.15%. The cost of its percentage participation in the nuclear plant and initial fuel and the total of these including allowance for funds used during construction (AFUDC), contingency and escala- , tion is as follows: PILGRIM UNIT 2 - Montaup (J.O.) ESTIMATE (Millions of Dollars) Total Direct & w/o Category Indirect Contingency Escalation AFUDC AFUDC Total e Nuclear Plant 17.4 2.9 5.7 26.0 12.6 38.6 Site & Common (incl. Facilities 0.6 - - 0.6 above) 0.6 Initial Fuel 0.9 - 0.4 1.3 0.6 l'. 9 Total 18.9 2.9 6.1 27.9 13.2 41.1 j [ The Sources of Funds Statement (Table VI-e-1) lists the estimated yearly expenditures for Montaup Electric's portion I (2.15%)of the Pilgrim 2 plant construction or acquisition of : i I property, plant and facilities, in addition to expenditures for all , i of Montaup Electric's construction or acquisition of property, j i
- plant and facilities.
This statement also lists the various sources and estimated , amounts of internal and external funds that will be employed by , t i Montaup Electric to finance the above construction expenditures. The assumptions included in the Sources of Funds Statement are
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listed in Table VI-e-2. -- , VI-e-1 >
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l t AMENDMENT 9 September 27, 1978 i i TABLE VI-e-4 I FERC RATE DEVELOPMENTS MONTAUP ELECTRIC COMPANY , r (
, Granted - M-3 Rate Electric Annual Amount Requested $1,672,400 Date Requested June 27, 1977 Annual Amount Granted $1,341,011 .
Percent Increase 1.1% Effective Date January 1, 1978 - Rate of Return on Rate Base Authorized 9.54% a Pending Requests - M-4 Rate i Annual Amount Requested $3,720,697 [ Date Requested June 28, 1978 ' Percent Increase 3.43% Effective Date (Subject to Refunds) November 29, 1978 i Rate of Return on Rate Base Requested 11.00% , f r 1 VI-e-9 . e.
AMENDMENT 9 September 27, 1978 [ l
- g. New Bedford Gas and Edison Light Company 6, 7 I 8,9 f (1) Sources of Funds l'
New Bedford Edison's percentage of project ownership and ! the percentage of cost is 1.53%. The cost of its percentage j participation in the nuclear plant and initial fuel and the total of these including allowance for funds used during construction (AFUDC), ! contingency and escalation is as follows: l PILGRIM UNIT 2 - New Bedford Gas and Edison Lt. Co. ESTIMATE (Millions of Dollars) i Total Direct & w/o . Category Inlirect Contingency Escalation AFUDC AFUDC Total 4 Nuclear Plant 13 2 4 19 8.6 27.6 Site & Common (incl. Facilities 0.4 - - 0.4 dbove) 0.4 Initial Fuel 1 _- _- 1 0.4 1.4 l Total 14.4 2 4 20.4 9 29.4 i i The Sources of Funds Statement (Table VI-g-1) lists the estimated yearly expenditures for New Bedford Edison's portion ! 4 I of the Pilgrim 2 plant construction or acquisition of property, ' plant and facilities, in addition to expenditures for all of New i Sedford Edison's construction or acquisition of property, plant and . f facilities. Table VI-g-1 also lists the various sources and estimated amounts of internal and external funds that will be employed by New Bedford Edison to finance the above construction expenditures. i. I VI-g-1 , F
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AMENDMENT 9 September 27, 1978
- h. New England Power Company 6,7, 8,9 (1) Sources of Funds New England Power Company's percentage of project ownership '
and percentage of cost is 11.16%. The cost of its percentage partic- [ ipation in the nuclear plant and initial fuel and the total of these including allowance for funds used during construction (AFUDC), con-tingency and escalation is as follows: PILGRIM UNIT 2 - NEW ENGLAND POWER CO. ESTIMATE , (Millions of Dollars) Total Direct & w/o Category Indirect Contingency Escalation AFUDC AFUDC Total Nuclear Plant 90.2 15.0 29.8 135.0 60.2 195.2 Site & Common (incl. Facilities 2.9 - - 2.9 above) 2.9 Initial Fuel 4.9 - 2.2 7.1 2.8 9.9 Total 98.0 15.0 32.0 145.0 63.0 208.0 : r The Sources of Funds Statement (Table VI-h-1) lists the estimated yearly expenditures for New England Power's portion of the Pilgrim 2 plant construction or acquisition of property, plant and facilities, in' addition to expenditures for all of New England Power's construction or acquisition of property, plant and facilities. Table VI-h-1 also lists the various sources and estimated amounts of internal and external funds that will be employed by New England Power to finance the above construction expenditures. The assumptions included in the Sources of Funds Statement are listed in Table VI-h-2. l VI-h-1 l
I AMENDMENT 9 September 27, 1978 The following is a table of New England Power's internally
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generated funds for the period 1968 through 1977. j INTERNALLY GENERATED FUNDS , YEAR AMOUNT (000's) 1968 S 4,700 (
'969
_ 100 1970 7,500 [ 1971 4,400 , 1972 27,700 - l 1973 12,100 1974 (1,900) ; i 1975 39,800 1976 22,600 f 1977 13,200 Financial statistics for the years 1976 and 1977 are pro-vided in Table VI-h-3. 6 (2) Officer's Certificate j i NEP now does all its mortgage debt financing under its General and Refunding Indenture which is subordinate to the First Mortgage Indenture. No new bonds will be issued under the First Mortgage Indenture, except Bonds pledged to the G & R Trustee and l upon the retirement of all the publicly held First Mortgage Bonds the ! G & R Bonds will become first mortgage bonds. Additional General and Refunding Bonds may be issued against 60% of Available Net Additional Property, which consists of i VI-h-2
i i AMENDMENT 9 September 27, 1978 substantially all property additions, but not property excepted from the lien of the G & R Indenture, including among other things; fuel, nuclear cores and materials; all gas, oil, and other mineral properties l and personal property related thereto; supplies; vehicles; cash; i securities; and contracts and accounts receivable. Attached as Exhibit 8-63 is a copy of the provisions of the Indenture which define Additional Property and Net Additional Property. The following exhibits are supplied which relata to the i earnings test requirement for issuing additional G & R Bonds: , Exhibit 8 A copy of the provisions of the indenture which define Net Earnings and Net I Earnings Certificate.
. Exhibit 8 A Net Earnings Certificate dated January 21, 1977 to the Trustee for NEP's Series A, G & R Bonds. .
Exhibit 8 Detail of Net Earnings for the Twelve month's ended December 31, 1977 in con-formity with the G & E Indenture provisions. Assuming a long term interest rate of 9%, NEP could issue over $320,000,000 principal amount - of additional bonds based on the net earnings test under the G & R Indenture for the period ending December 31, 1977. [ (3) Rate Relief Action , Table VI-h-4 provides information on NEP's most recent rate change. Also, enclosed as Exhibit 8-67 is a copy of the related rate order. , VI-h-3
l AMENDMEUT 9 September 27, 1378 TABLE VI-h-4 RATE DEVELOPMENTS Electric G ranted
- Annual amount requested - test year basis (000's) S14,263,800 i Date requested 12/1/77 !
Annual amount granted - test year basis (000's) $14,263,800 _- Percent increase 2.5% Effective date June 1, 1978 Rate of return on rate base 9.94% Revenue Effect (000's) Amount received in yect granted Amount received in subsequent year Pending Recuests Amount (000's) Percent Increase ~ Dated filed Date allowed to go into effect* NONE Date by which decision must be issued Rate of return on rate base requested Rate of return on common equity requested
*This rate increase to be put into effect subject to refund pending completion of a review and final decision and order by the Federal Energy Regulatory Commission.
VI-h-9
AMENDMENT 9 September 27, 1978 Public Service Company of New Hampshire 6,8, i. 9 (1) Sources of Funds The Public Service Company of New Hampshire percentage of project participation is 3.47%, the cost of this percentage partic-ipation in the nuclear plant and initial fuel and the total of these including allowance for funds used during construction (AFDUC), contingency and escalation is as follows: PILGRIM UNIT 2 - PSNH SHARE (J.O.) ESTIMATE (Millions of Dollars) Total Direct & w/o Category Indirect Contingency Escalation AFUDC AFUDC Total Nuclear Plant 29 5 9 43 23 66 Site & Common (incl. Facilities 1 - - 1 above) 1 Initial Fuel 1 - 1 2 1 3 Total 31 5 10 46 24 70 The 9ources of Funds Statement (Table VI-i-1) lists the estimated year.y expenditures f0r PSC of NH's portion of the Pilgrim 2 plant construction or acquisition of property, plant and facilities, , in addition to expenditures for all PSC of NH's construction or acquisition of property, plant and facilities. Table VI-i-1 also lists the various sources and estimated amounts of internal and external funds that will be employed by PSC 4 of NH tp finance the above construction expenditures. Table VI-i-2 lists tie assumptions included in the Sources of Funds Statement. I The following is a table of PSC of NH's internally generated funds for the period 1968 through 1977. t f i e 4 9 I % 4 VI-i-1
e.
?
TABLE VI-i-l replicant: PtiftLIC SERVICE Cf Hl'ANY OF NOJ ttAHf'SillitE Nuclear Plant PIIERPf NtICLFAR STATION Sources of Funds (or System.uide Construction Expenditures During Period o f t'ons t s uc t i on o f Sul. lec t Nuclear Ibwcr Plant (See Note) (TI,ousands of th,ll. ors) Construct ton Years of Sub jec t Nuc l e.i r 1%wcr Plant Security lasues and Otner Funds 1977 1978 1979 1980 1951 1982 1983 1984 1985 Consuon Stock $ 25,092 $ 51,881 $ 50 ono S 55,000 $ 55.000 , $ 55,000 $ . , Ireferred Stock 18,000 20,000 20.0n0 20,000 20,000 18,000 . . . l.ong-Term Debt (3,843) 54,067 50,166 80,000 55,876 80.000 65,000 49,I00 ( l '. ,2 50) Nntes Payable 55,113 12,000 _7h000 (7,000) 1,000 (31,000) _ (49,000) y0J)_0) J41,00J) Tntst S 94.362 $139.941 $192,166 $148,000 $131,8 76 $120.000 $ 16,000 S 39.100 Sf 55.2'*0) Internal EnnJs tie t income $ 21,722 $ 40.90d $ 53,117 $ 65.361 $ 78,305 $ 91,905 $ 98,751 $105,18 5 $107.74, I,e s s : Preferred DtvlJends (4,925) (6.405) (9.255) (11,155) (I),055) (14,860) (15.472) (15,064) (l 'e,$02 ) C<m==m Di v idend s _Q4d56) j l8 3189) ,,.(2 5,5 34 ) J]l,684) jl.8J87) J45,976) y l 3509) (54, 85)
< Retained rarnings 2,641 16,314 18,388 22,522 26.263 31,069 31,771 35,5)'s
, t ',6 . 89tJ )
16.212 f Deferred Taxes 3.8ct6 5,852 6,9#16 7.8%I 7,789 9,389 7,318 8,964 5,653 F Investment Tax Credit 1,725 13.208 17,647 15,384 17,983 7,328 13,278 5,496 5,708 8 Depreclation 14,117 14,787 15,654 16,349 17,202 18.088 48,342 49.250 75,535 A (27,697) Aflowance for Funds (12,263) (17.510) (25.112) (25,123) , (21,908) (II,381) (12,670) (3,827) Sinkinr. rund & W.,rking capital (176) (8,154) (8,931) (28) f4,446) j jl9_,gs) 4,391 p 470) _g?1) Total L 9,730 U 4,367 }_24.h30 } 4,381 j3(28 !j 24,201 } 93,719 Ops $111,388 TO'I Ah Fl!NDS J10'e,pj_j }Mftdij JMMD j,l R 38) jl&R'l l jth2M $1Wl] Mp)M $MM Coastenctfun f.xpenditures Nuclear powen Plants $ 66,8'JI $136.4 7 7 $ l8 7,'746 $152.128 $134,972 $102,370 $ 11,114 $ 60,4',6 $ 4.9% Other 17,20I 21, H )8 ,_29,_050 30,253 36,532 44,8)I 18,605 51,143 41 067 Total 11%,0$ ,$1 % )lj RIMM $152318L {}7.t3 5ft Ill!'taMI Il92dl2 #1659% LhlM
% hject Nucle.es Plant Lldi %,3d6) {,) jl] j, fn ?JJ j,7 g 6]) .$,.63%){ $_.5,4jl J J ,Up[ J.,),0yj Noi r.: 3he information shown on this sheet is not a insecant of what will actually p(cur. It is a psojection cased on anticip. ired construction espenditures and capital s etitiements and on certain assumptions, includinr, assumptions as to the cost of additional capital and as to the ade.r'. icy of revennes d'ering the perind, g.p
.J O
. ~z W 6-3
-a CD W
- - - - . - - -- . -. , -. , . - ~ - , . , - . _ . _ . . . - , . .
AMENDMENT 9 September 27, 1978 m GN1BLE VI-i-2 PUBLIC SERVICE COMPANY OF NE'J HAMPSHIRE PILGRIM STATION UNIT NO. 2 ASSUMPTIONS REGARDING SOURCES OF FUNDS SCHEDULE Major assumptions used for determining sources of funds:
- 1. Average return on common equity: -
14% 6
- 2. Preferred Stock dividend rate: 9.5%
- 3. Net L/T Debt interest rate: 9.5 - 10.125%
4 Short-Term Debt interest rate: 9. 7 - 11.67. .
- 5. Common Stock selling price: $19.31 - $28.21/Sha.re
- 6. Market / book ratio for Common Stock issue: 79 - 1007, t
- 7. Payout ratio: 56 627
- 8. Target capital s tructure.
Long-Term Debt 44 - 437. , Preferred Stock 16 - 11% ! Common Stock 40 - 46% [
- 9. SEC interes t coverage 3.09 - 3.44 ;
- 10. Indenture interest coverage 3.51 - 4.09
- 11. Annual growth rate in KRH sales 9.9 - 6.3% l
- 12. Price per KRH of prime sales 4.6 - 6.Sc
- 13. Data and results are based upon esimates and are subject ta change because of capital market, regulatory, and other external 1 forces which cannot be predicted with complete certainty. [
VI-i-5
i i AMENDMENT 9 September 27, 1978 TABLE VI-i-4 ' PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE RATE DEVELOPMENTS t Granted (New Hampshire Public Utilities Commission) Annual amount requested - test year basis (000's) $31,998 Date requested April 27, 1977
~
i Annual amount granted - test year basis (000's) $30,134 l Percent increase 19.287.
- Effective date June 1, 1978 Rate of return on rate base authorized 10.197. .
Revenue Effect (000's) l Amount received in year granted $30,134 Amount received in subsequent year , Not Available [ Pending Requests (Federal Energy Regulatory Commission) Amount (000's) $2,376 Percent increase 7.707. Date filed . April 28, 1978 l Date by which decision must be issued None
- Rate of return on rate base requested 10.887.
Rate of return on common equity requested 15% l P i a > VI-i-7 ,
AMENDMENT 9 September 27, 1978 ~ 6,7, The United Illuminating Company 8,9 j. (1) Sources of Funds The cost to United Illuminating for participation in the project, based on its 3.3% ownership of the Pilgrim 2 nuclear plant and initial fuel is shown below: PILGRIM UNIT 2: UNITED ILLUMINATING EXPENDITURES (millions of dollars) Direct Total and w/o Category Indirect Contingency Escalation AFUDC AFUDC Total Nuclear Plant 26.7 4.4 8.8 39.9 13.6 53.5 Site & Common (incl. Facilities 0.9 - - - 0.9 above) 0.9 Initial Fuel 1.5 - 0.5 2.1 0.7 2.8 Total 29.1 4.4 9.4 42.9 14.3 57.2 The Sourcss of Funds Statement (Table VI-j-1) lists the estimated yearly expenditures for United Illuminating's portion of the Pilgrim 2 plant construction or acquisition of property, plant and facilities, in addition to expenditures for all of United Illuminating's construction or acquisition of property, plant and facilities. - Table VI-j-1 also lists the various sources and estimated amounts of internal and external funds that will be employed by United illuminating to finance the above construction expenditures. The assumptions included in the Sources of Funds Statement are listed in Table VI-j-2. VI-j-1
> 5 AMENDMENT 9 September 27, 1978 3
TABLE VI-j-4 THE UNITED ILLUMINATING COMPANY o FINANCIAL STATISTICS l RATE DEVELOPMENTS Electric Granted Annual amount requested - test year basis (000's) $14,989 Date requested 3/5/76 Annual Enount granted - test year basis (000's) S10,260 Percent increase 5.54% l Effective date 7/27/76 Rate of return on rate base authorized 8.66% Rate of return on common equity authorized 12.45% Revenue Effect (000's) , Amount received in year granted $4,789 I Amount received in cubsequent year $6,164 i Pending Requests Amount (000's) S33,989 Percent increase 15.9% Date filed 7/14/78 Date by which decision must be issued 12/21/78 Rate of return on rate base requested 9.98% Rate of return on common equity requested 15.0% VI-j-12
L l 1. l l AMENDMENT 9 September 27, 1978 6,9
- l. The Electric Department of the City of Burlington, Vermont
~
(1) Sources of Funds i The Burlington Electric Department's percentage of project ownership and the percentage of cost that the Department will bear is e 0.33%. Sources of funds to support this project will be provided from Municipal General Obligation Bonds with interest and principal paid out of operating revenues of the Electric Department. The Burlington Electric Department Annual Report for 1977 is ! attached as Exhibit 8-15. F i - The cost of its percentage participation in the nuclear plant, site and common facilities, initial fuel and the total of these including allowance for funds'used during construction (AFUDC), con-tingency and escalation is as follows: PILGRIM UNIT 2 - BURLINGTON, VERMONT ELECTRIC DEPT. ESTIMATE (Milliono of Dollars) Total Direct & w/o Category Indirect Contingency Escalation AFUDC AFUDC Total Nuclear Plant 2.7 0.4 0.9 4.0 1.4 5.4 Site & Common - (incl. Facilities 0.1 - - 0.1 above) 0.1 Initial Fuel 0.1 - 0.1 0.2 0.1 0.3 Total 2.9 0.4 1.0 4.3 1.5 5.8 VI-1-1
AMENDMENT 9 September 27, 1978 -s , The total estimated costs (including costs for Pilgrim 2) for - all construction or acquisition of property, plant, and facilities by year from 1978 through 1985 are as follows: 1978 $ 2,134,721 1979 6,372,050 1980 12,399,551 1981 14,585,068 1982 12,381,523 1983 10,062,635 1984 1,622,38" 1985 893,000 The following schedule shows internally generated funds for the previous ten yeara (1968-1977): Year Ending June 30, 1968 l Net Income $481,143.50 Depreciation 365,914.16 Total S847,057.66 Year Ending June 30, 1969 Net Income S453,827.20 Depreciation 380,057.74 Total S833,884.94 Year Ending June 30, 1970 i Net Income $392,651.67 Depreciation 391,362.81 Total S784,014.48 VI-1-2
AMENDMENT 9 September 27, 1978 Year Ending June 30, 1971 Net Income S (6,266.42) Depreciation 419,018.07 Total $412,751.65 Year Ending June 30, 1972 Net Income $ 16,052.07 Depreciation 519,704.07 Total $535,756.14 Year Ending June 30, 1973 Net Income p(78,878.00) . Depreciation 583,826.00 Total $504,948.00 Year Ending June 30, 1974 Net Income $(63,213.00) Depreciation 544,967.00 , Total $481,754.00 Year Ending June 30, 1975 Net Income S(524,177.00) Depreciation 577,206.00 Total $ 53,029.00 Year Ending June 30, 1976 Net Income $ 96,169.00 Depreciation 578,353.00 Total $674,522.00 Year Ending June 30, 1977 Net Income $1,423,624.08 Depreciation 610,158.68 Total $2,033,782.76 (2) Rate Change Procedure The Department's sales of electrical energy fall into two categories; retail sales to ultimate consumers, and contractural sales to other utilities. Contractural sales to other utilities outside Vermont are subject to Federal Power Commission review and 1 approval, and contractural sales within Vermont subject to State VI-1-3
AMENDMENT 9 September 27, 1978 Public Service Board review and approval. Retail rate changes to ultimate consumers face a three tiered approval requirement, ! commencing with the Board of Electric Commissioners thence the City , t Council, and ultimately the State of Vermont Public Service Board. l Decisions made by the Public Service Board may be appealed to the Vermont Supreme Court. . I b k i I i VI-1-4
AMENDMENT 9 September 27, 1978
- m. Vermont Electric Cooperative, Inc. 6,8, 9
(1) Sources of Funds The cost to Vermont Electric Cooperative, Inc. for partici-pation in the project, based on its (0.20)% ownership of the Pilgrim 2 nuclear plant and initial fuel is shown below: PILGRIM UNIT 2: (Vermont Electric Cooperative, Inc.) EXPENDITURES (millions of dollars) Total Total Direct & Without With Category Indirect Contingency Escalation AFUDC AFUDC* AFUDC Nuclear Plant 1.618 0.268 0.534 2.420 0.299 2.719 Site & Common (incl. - Facilities 0.052 -- -- 0.052 above) 0.052 Initial Fuel 0.088 -- 0.040 0.128 0.010 0.138 Total 1.758 0.268 0.574 2.600 0.309 2.909 The Sources of Funds Statement (Table VI-m-1) lists the estimated yearly expenditures for Vermont Electric Cooperative,. Inc.'s portion of the Pilgrim 2 plant construction or acquisition of property, plant and facilities, in addition to expenditures for all of Vermont Electric Cooperative, Inc.'s construction or acquisition of property, plant and facilities. Table VI-m-1 also lists the various sources and estimated amounts of internal and external funds that will be employed by Vermont Electric Cooperative, Inc., to finance the above construction expenditures.
- Vermont Electric Cooperative, Inc.'s AFUDC rate is 5.0%.
VI-m-1
.______.____._m._.
AMENDMENT 9 September 27, 1978
- o. Massachusetts Municipal Wholesale Electric Company (MMWEC) f
(1) Sources of Funds
!1MWEC's percentage of project ownership and percentage of ,
cost is 13.24%. The cost of its percentage participation in the nuclear plant and initial fuel and the total of these including allowance for funds used during construction (AFUDC), contingency , and escalation is as follows: PILGRIM UNIT 2 - MMWEC (J.O. ) ESTIMATE (millions of dollars) Total Direct & w/o } Category Indirect Contingency Escalation AFUDC IDC Total Nuclear Plant 107.1 17.7 35.4 160.2 108'.3 268.5 Site & Common (incl .~ Facilities 3.5 - - 3.5 above) 3.5 Initial Fuel 5.8 - 2.6 8.4 5.7 14.1 Total 116.4 17.7 38.0 172.1 114.0 286.1 MMWEC will obtain funds for financing the facility through the issuance of power supply system revenue bonds secured by Power , Sales Agreements with the 25 Massachusetts municipal electric systems ' which are listed below. A conformed copy of the Power Sales Agreement is attached as Exhibit 8-84. The initial issue of such bonds was accomplished during September 1976 and the Official Statement for this 1976 Series A bond issue is attached as Exhibit 8-85. The official Statement for the most recent bond issue (1977 Series B) is attached as Exhibit 8-86. Net interest during construction VI-o-1
l ! f AMENDMENT 9 i September 27, 1978 i stations proposed for installation in New England by 1988 (Nuclear f Mix 2). It is expected that requests will be made to the DPU in the future for additional bond authorizations as necessary. , (3) Sources of Construction Funds ' MMWEC intends to rely primarily upon the issuance of long-term debt in the form of revenue bonds. Such revenue bonds are secured 100% with "take or pay", lif e-of-unit Power -Sales--Agreements-~-- t L with 25 municipal electric systems. MMWEC has assumed for all
- projected costs, a net interest cost on the bonds of 7-3/4% during 4
the construction period of this facility. Such interest costs shall s be funded from the bond proceeds. The new interest cost on the 1977 r 1 series of such bonds is 6 1/4%. We are unable to provide, at this l j time, a. complete tabulation'of the timing and magnitude of the issuance of the several series of bonds required for completion of this project. Table VI-o-3 therefore remains incomplete. ; I i (4) Financial Statements " As of May 27, 1976, the MMWEC public corporation is the successor to the private corporation of the same name and hence does i not have a 10-year history of internally generated funds. The Power Sales Agreement (Nuclear Mix No. 1) executed by MMWEC and each of the 25 municipal electric systems provides for the purchase of an amount of nuclear power and energy from three proposed nuclear power stations. The three stations in this ! VI-o-4'
l l i AMENDMENT 9 September 27, 1978 S,9 l VII. COMPLETION DATES ! t t Commercial operation of Pilgrim Station Unit 2 is currently scheduled for June 1985. The earliest and latest construction com-pletion (fuel load) dates anticipated for Unit 2 are January 1, 1985 i
- and December 1987, respectively. ,
t l' t i t f I r I i l VII-l
APPOINTMENT OF AGENT AND SIGNATURE OF APPLICATION The undersigned, Vermont Electric Cooperative, Inc. , hereby joins in the filing of this Application and in connection therewith hereby appoints Boston Edison Company as its agent for the purpose of: (a) signing, executing, acknowledging and filing with the Commission ! any and all applications, documents and information (including > amendments thereto) which are now or may become necessary of which ! Boston Edison Company deems necessary or desirable, in connet. tion l with the construction and/or operation of Pilgrim Unit 2 (including but not limited to, the construction permit, operat:ng license and ! other licenses required for the Unit by the Act); and (b) acting for and on its behalf in any hearing, appeal or other proceeding with respect to said construction permit, operating license and other ; licenses, or the taking of action necessary or incidental thereto or any action deemed necessary or desirable by Boston Edison Company in connection with the foregoing; and (c) acting for and on its behalf in connection with the obtaining of any other federal, state or local permit, license or approval necessary for or incidental to the construction and/or operation of the Unit. ; r VERMONT ELECTRIC COOPERATIVE, INC. !
. p : '
-., < . , , '/ y.C /
its Controller ; VERIFICATION , t State of Vermont March 31,1978 County of Lamoille ! Then personally appeared before me, William J. Callagher who being duly sworn i did state he is Controller of Vermont Electric Cooperative, Inc. , one of the Applicants herein, that he has read the foregoing information relating to such Applicant contained l In the Application, and that the statements contained therein relating to such Applicant i are true to the best of his knowledge and belief, and further that he is duty a.ithorized i to appoint Boston Edison Company agent as described above. > m ' 7 ,
*A Nota l
Public
/44C
i APPOINTMENT OF AGENT AND SIGNATURE OF APPLICATION The undersigndd, CENTRAL MAINE POWER COMPANY, hereby joins in the filing of this Application and in connection therewith hereby appoints Boston Edison Company as its agent for the purpose or: (a) signing, executing, acknowledging and filing with the Commission any and all applications, documents and information (including amendments thereto) which are now or may become necessary of which Boston Edison Company deems necessary or desirable, in connection with the construction and/or operation of Pilgrim Unit 2 (including but not limited to, the construction permit, operating license and other licenses required for the Unit by the Act); and (b) acting for and on its behalf in any hearing, appeal or other proceeding with respect to said construc-tion permit, operating license and other licenses, or the taking of action necessary or incidental thereto or any action deemed necessary or desirable by Boston Edison Company in connection with the foregoing; and (c) acting for and on its behalf in connection with the obtaining of any other federal, state or local permit, license or approval necessary for or incid-ental to the construction and/or operation of the Unit. Central Maine Power Company By ' ~ [' 2. . . E. W. Thurlow Its President VERIFICATION State of Maine County of Kennebec April 18, 1978 Then personally appeared before me, E. W. Thurlow who being duly sworn did state he is President of CENTRAL MAINE POWER COM-PANY one of the Appl.icants herein, that he has read the foregoing i information relating to such Applicant containea in the Applica- ' tion, and that the statements contained therein relating to such l Applicant are true to the best of his knowledge and belief, and further that he is duly authorized to appoint Boston Edison Com-pany agent as described above. ,
\
}
, k' ] / 99 9. 4 - '
.' Notary Publit My Commission'Ex ires September 16, 1984
AMENDMENT 9 : September 27, 1978 j GENERAL AND FINANCIAL AMENTMENT NO. 8 i List of Exhibits j i Exhibi* _ No. Title [ 8-1 Boston Edison Company - 1977 Annual Report { 8-2 Central Maine Power Co. - 1977 Annual Report l 8-3 Central Vermont Public Ser. Corp. - 1977 Annual Report [ 8-4 Fitchburg Gas and Electric Light Co. - 1977 Annual Report ; 8-5 Eastern Utilities Associates - 1977 Annual Report ! 8-6 Eastern Utilitics Associates - Prospectus, dated May 17, 1977 8-7 New England Gas and Electric Assoc. - 1977 Annual Report 8-8 New Bedford Gas and Edison Light Co. - 1977 Annual Report i 8-9 New England Electric System - 1977 Annual Report 8-10 New England Power Co. - 1977 Annual Report 8-11 Public Service Co. of N.H. - 1977 Annual Report ! S-12 The United Illuminating Co. - Prospectus, dated June 8, 1977 8-13 The United Illuminating Co. - 1977 Annual Report j 8-14 Town of Hudson Light and Power Dept. - 1977 Annual . Report t 8-15 Burlington Electric Dept. - 1977 Annual Report 8-16 Vermont Electric Cooperative,- Inc. - 1977 Annual Report 8-17 -Taunton Municipal Lighting Plant - 1977 Annual Report i 8-18 Massachusetts Municipal Wholesale Electric Co. - 1977 Annual Report - 8-19 Boston Edison Co. - Officer's Certificate 8-20 Boston Edison Co. - Accountant's Certificate ' 8-21 Boston Edison Co. - Portions of Series P Bond Issue Prospectus ; 8-22 Boston Edison Co. - Definition of Terms from Indenture , of Trust and First Mortgage
.8-23 Boston Edison Co. - Rate Order and Opinion for Latest
, Rate Relief Action i
AMENDMENT 9 September 27, 1978 List of Exhibits - Continued Exhibit No. Title 8-24 Boston Edison Co. - Preferred Stock Coverage Requirements 8-25 Boston Edison Co. - Prospectus for Cumulative Preferred Stock, 8.88% Series : 8-26 Boston Edison Co. - Preferred Stock Issuance Test I Calculations 8-27 Boston Edison Co. - Prospectus for First Mortgage Bonds, Series P, dated May 4, 1977 ' 8-28 Central Maine Power Co. - Net Earnings Certificate 8-29 Central Maine Power Co. - Definition of Terms from ' General and Refunding Mortgage Indenture 8-30 Central Maine Power Co. - Definition of Terms from General and Refunding Mortgage Indenture 8-31 Central Maine Power Co. - Mortgage Bond Issuance 8-32 Central Maine Power Co. - Rats Order and Opinion for Latest Rate Relief Action 8-33 Central Maine Power Co. - Preferred Stock Coverage Requirements t 8-34 Central Maine Power Co. - Preferred Stock Coverage Computation ; 8-35 Central Maine Power Co. - Restrictions and Constraints on the Issuance of Additional Debt or Equity ; 8-36 Central Maine Power Co. - Prospectus for Common Stock l Offering, dated March 16, 1978 i 8-37 Central Vermont Public Service Corp. - Officer's Certificate of Net Earnings 8-38 Central Vermont Public Service Corp. - Officer's Certifi- ! cate Regardim Issuance of Mortgage Bonds 8-39 Central Vermont Public Service Corp. - Definition of Issuable Bonds 8-40 Central Vermont Public Service Corp. - Definition of Net Earnings Coverage from Mortgage Indenture 8-41 Central Vermont Public Service Corp. - Interest Coverage [' Test ii I
i l 1 i AMENDMENT 9 September 27, 1978 l List of Exhibits - Continued Exhibit No. Title 8-42 Central Vermont Public Service Corp. - Rate Order and Opinion for Latest Rate Relief Action 8-43 Central Vermont Public Service Corp. - Prospectus for ! Latest Stock Issue 8-44 Central Vermont Public Service Corp. - Definition of , Issuance Test for Preferred Stock from Articles of l Association . l A 15 Central Vermont Public Service Corp. - Calculation of : l Issuable Dreferred Stock 8-46 Fitchburg Gas and Electric Light Co. - Officer's Certificate l 8-47 Fitchburg Gas and Electric Light Co. - Definition of Most Restrictive Interest Coverage 8-48 Fitchburg Gas and Electric Light Co. - Calculation of Interest Coverage 8-49 Fitchburg . Gas and Electric Light Co. - Rate Order and Opinion for Latest Rate Relief Action ' 8-50 Fitchburg Gas and Electric Light Co. - Supplemental Rate Order ; 8-51 Fitchburg Gas and Electric Light Co. - Preferred Stoch Coverage Raquirements from Company's Bylaws 9-52 Fitchburg Gas and Electric Light Co. - Preferred Stock Coverage Requirements for Period Ending December 31, 1977 8-53 Fitchburg Gas and Electric Light Co. - Restrictions and Constraints on Issuance of Additional Debt or Equity 8-54 Montaup Electric Co. - Rate Order and Opinion for Latest ! Rate Relief Action 8-55 New Bedford Gas and Edison Light Co. - Accountant's Certificate t 8-56 New Bedford Gas and Edison Light Co. - Officer's , Certificate ; 8-57 New Bedford Gas and Edison Light Co. - Definition of Terms from Principal Indenture i iii t.
1 i AMENDMENT 9 l September 27, 1978 l l L List of Exhibits - Continued r l Exhibit 1 No. Title j 8-58 New Bedford Gas and Edison Light Co. - Definition of Terms from Principal Indenture 8-59 New 9edford Gas and Edison Light Co. - b6finition of Term:. from Principal Indenture 8-60 New Bedford Gas and Edison Light Co. - Calculation of Annual Interest Charges 8-61 New bedford Gas and Edison Light Co. - Determination of het Earnings (3/31/78) and Issuable Amounts of Mortgage Bonds , U 8-62 New Bedford Gas and Edison Light Co. - Rate Order and Opinion for Latest Rate Relief Action 8-63 New England Power Co. - Provisions of Indenture Defining Additional Property 8-64 New England Power Co. - Provisions of Indenture Defining Net Earnings and Net E7rnings Certificate 8-65 New England Power Co. - Net Earnings Certificate .
- 8-66 New England Power Co. - Calculations of Net Earnings 8-67 New England Power Co. - Rate Order and Opinion for Latest Rate Relief Action f 8-68 This page is intentionally blank '
8-69 New England Power Co. - Definition of Preferred Stock ) Coverage Requirements from NEP's By-Laws 8-70 Public Service Co. of New Hampshire - Officer's Certificate 8-71 Public Service Co. of New Hampshire - Definition of Additional Property 8-72 Public Service Co. of New Hampshire - Definition of Net Earnings 8-73 Public Service Co. of New Hampshire - Calculation of Net Earnings (9/30/77) 8-74 Public Service Co. of New Hampshire - Rate Order and Opinion for Latest Rate Relief Action 8-75 Public Service Co. of New Hampshire - Preferred Stock Coverage Requirements I iv
i i AMENDMENT 9 : September 27, 1978 [ ( ., List of Exhibits - Continued i Exhibit i No. Title t 8-76 Public Service Co. of New Hampshire - Restrictions on the Issuance of Short-Term Debt i 8-77 The United Illuminating Co. - Officer's Certificate 8-78 The United Illuminating Co. - Officer's Certificate i 8-79 The United Illuminating Co. - Definition of Debt Limit Test from Trust Indenture t 8-80 The United Illuminating Co. - Definition of Interest ; Coverage Test from Trust Indenture 8-81 The United Illuminating Co. - Calculation of Net Ehrnir.gs (9/30/77) 8-82 The United Illuminating Co. - Rate Order and Opinion I for Latest Rate Relief Action , 8-83 The United Illuminating Co. - Preferred Stock Coverage f Requirements 8-84 Massachusetts Municipal Wholesale' Electric Co. - Power - Sales Agreement . 8-85 Massachusetts Municipal Wholesale Electric Co. - : Prospectus for 1976 Series A Bonds 7 8-86 Massachusetts Municipaf Wholesale Electric Co. - , Official Statement for 1977 Series B Bonds , f 8-87 Massachusetts Municipal Wholesale Electric Co. - Chapter 775, Acts of 1975 2 8-88 This page is intentionally blank > 8-89 Taunton Municipal Lighting Plant Official Statement for Bond Issue, dated January 19, 1976 - i l V I
AMENDMENT 9 September 27, 1978 GENERAL AND FINANCIAL AMENTMENT NO. 8 List of Exhibits Exhibit No. Title 8-1 Boston Edison Company - 1977 Annual Report 8-2 Central Maine Power Co. - 1977 Annudl Report 8-3 Central Vermont Public Ser. Corp. - 1977 Annual Report s 8-4 Fitchburg Gas and Electric Light Co. - 1977 Annual Report i 8-5 Eastern Utilities Associates - 1977 Annual Report , 8-6 Eastern Utilities Associa tes - Prospectus, dated May 17, 1977 8-7 New England Gas and Electric Assoc. - 1977 Annual Report 8-8 New Bedford Gas and Edison Light Co. - 1977 Annual Report 8-9 New England Electric System - 1977 Annual Peport 8-10 New England Power Co. - 1977 Annual Report 8-11 Public Service Co. Of N.H. - 1977 Annual Report 8-12 The United Illuminating Co. - Prospectus, dated June 8, 1977 8-13 The United Illuminating Co. - 19 77 Annual Report 8-14 Town of Hudson Light and Power Dept. - 1977 Annual Report 8-15 Burlington Electric Dept. - 1977 Annual Report 8-16 Vermont Electric Cooperative, Inc. - 1977 Annual Report 8-17 Taunton Municipal Lighting Plant - 1977 Annual Report 8-18 Massachusetts Municipal Wholesale Electric Co. - 1977 Annual Report 8-19 Boston Edison Co. - Officer's Certificate 8-20 Boston Edison Co. - Accountant's Certificate 8-21 Boston Edison Co. - Portions of Series P Bond Issue Prospectus 8-22 Boston Edison Co. - Definition of Terms from Indenture of Trust and First Mortgage 8-23 Boston Edison Co. - Rate Order and Opinion for Latest Rate Relief Action i
AMENDMENT 9 September 27, 1978 , List of Exhibits - Continued Exhibit t No. Title l F 8-24 Boston Edison Co. - Preferred Stock Coverage Requirements ; 8-25 Boston Edison Co. - Prospectus for Cumulative Preferred Stock, 8.88% Series 8-26 Boston Edison Co. - Preferred Stock Issuance Test Calculations 8-27 Boston Edison Co. - Prospectus for First Mortgage Bonds, Series P, dated May 4, 1977 8-28 Central Maine Power Co. - Net Earnings Certificate 8-29 Central Maine Power Co. - Definition of Terms from General and Refunding Mortgage Indenture 8~30 Central Maine Power Co. - Definition of Terms from General and Refunding Mortgage Indenture 8-31 Central Maine Power Co. - Mortgage Bond Issuance 8-32 Central Maine Power Co. - Rate Order and Opinion for Latest Rate Relief Action 8-33 Central Maine Power Co. - Preferred Stock Coverage Requirements 8-34 Central Maine Power Co. - Preferred Stock Coverage i Computation 8-35 Central Maine Power Co. - Restrictions and Constraints on the Issuance of Additional Debt or Equity 8-36' Central Maine Power Co. - Prospectus for Common Stock Offering, dated March 16, 1978 , 8-37 Central Vermont Public Service Corp. - Officer's Certificate of Net Earnings 8-38 Central Vermont Public Service Corp. - Officer's Certifi-cate Regarding Issuance of Mortgage Bonds 8-39 Central Vermont Public Service Corp. - Definition of Issuable Bonds 8-40 Central Vermont Public Service Corp. - Definition of Net Earnings Coverage from Mortgage Indenture 8-41 Central Vermont Public Service Corp. - Interest Cc7erage i Test ii
AMENDMENT 9 September 27, 1978 List of Exhibits - Continued Exhibit No. Title 8-42 Central Vermont Public Service Corp. - RatIe Order and Opinion for Latest Rate Relief Action 8-43 Central Vermont Public Service Corp. - Prospectus for Latest Stock Issue 8-44 Central Vermont Public Service Corp. - Definition of Issuance Test for Preferred Stock from Articles of Association --
'8-45 Central Vermont Public Service Corp. - Calculation of Issuable Preferred Stock 8-46 Fitchburg Gas and Electric Light Co. - Officer's Certificate 8-47 Fitchburg Gas and Electric Light Co. - Definition of Most Restrictive Interest Coverage 8-48 Fitchburg Gas and Electric Light Co. - Calculation of Interest Coverage 8-49 Fitchburg Gas and Electric Light Co. - Rate Order and , "
Opinion for Latest Rate Relief Action 8-50 Fitchburg Gas and Electric Light Co. - Supplemental Rate Order 8-51 Fitchburg Gas and Electric Light Co. - Preferred Stock Coverage Requirements from Company's Bylaws , 8-52 Fitchburg Gas and Electric Light Co. - Preferred Stock Coverage Requirements for Period Ending December 31, 1977 8-53 Fitchburg Gas and Electric Light Co. - Restrictions and Constraints on Issuance of Additional Debt or Equity 8-54 Montaup Electric Co. - Rate Order and Opinion for Latest Rate Relief Action l 8-55 New Bedford Gas and Edison Light Co. - Accountant's ! Certificate 8-56 New Bedford Gas and Edison Light Co. - Officer's ( Certificate 8-57 New Bedford Gas and Edison Light Co. - Definition of Terms from Principal Indenture l iii
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l AMENDMENT 9 September 27,'1978 List of Exhibits - Continued i l Exhibit l No. Title 8-58 New Bedford Gas and Edison Light Co. - Definition of Terms from Principal Indenture l 8 New Bedford Gas and Edison Light Co. - Definition of Terms from Principal Indenture 8-60 New Bedford Gas and Edison Light Co. - Calculation of Annual Interest Charges b-61 New Bedford Gas and Edison Light Co. - Determination of Net Earnings (3/31/78) and Issuable Amounts of Mortgage Bonds 8-62 New Bedford Gas and Edison Light Co. - Rate Order and Opinion for Latest Rate Relief Action 8-63 New England Power Co. - Provisions of Indenture Defining l Additional Property . i 8-64 New England Power Co. - Provisions of Indenture Defining Net Earnings and Net Earnings Certificate 8-65 New England Power Co. - Net Earnings Certificate 8-66 New England Power Co. - Calculations of Net Earnings ! 8-67 New England Power Co. - Rate Order and Opinion for Latest l Rate Relief Action - 8-68 This page is intentionally blank 8-69 New England Power Co. - Definition of Preferred Stock j Coverage Requirements from NEP's By-Laws 8-70 Public Service Co. of New Hampshire - Officer's Certificate 8-71 Public Service Co. of New Hampshire - Definition of Additional Property 8-72 Public Service Co. of New Hampshire - Definition of Net Earnings 8-73 Public Service Co. of New- Hampshire - Calculation of-Net Earnings (9/30/77) 8-74 Public Service Co. of New Hampshire - Rate Order and Opinion for Latest Rate Relief Action 8-75 Public Service Co. of New Hampshire - Preferred Stock Coverage Requirements iv
l l l AMENDMENT 9 September 27, 1978
,+
List of Exhibits - Continued Exhibit No. Title g 8-76 Public Service Co. of New Hampshire - Restrictions on the Issuance of Short-Term Debt 8-77 The United Illuminating Co. - Of ficer's Certificate 8-78 The United Illuminating Co. - Officer's Certificate 8-79 The United Illuminating Co. - Definition of Debt Limit Test from Trust Indenture 8-80 The United Illuminating Co. - Definition of Interest Coverage Test from Trust Indenture 8-81 The United Illuminating Co. - Calculation of Net Earnings (9/30/77) 8-82 The United . Illuminating Co. - Rate Order and Opinion for Latest Rate Relief Action 8-83 The United Illuminating Co. - Preferred Stock Coverage Requirements 8-84 Massachusetts Municipal Wholesale Electric Co. Power l Sa. is Agreement-8-85 Massachusetts Municipal Wholesale Electric Co. - i Prospectus for 1976 Series A Bonds 8-86 Massachusetts Municipal Whol'esale Electric Co. - Official Statement for 1977 Series B Bonds 8-87 Massachusetts Municipal Wholesale Electric Co. - Chapter 775, Acts of 1975 8-88 This page is intentionally blank 8-89 Taunton Municipal Lighting Plant - Official Statement for Bond Issue, dated January 19, 1976 , i t v 1 l
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New England Electric System Annual Report 1977
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i t The System About the Cover New England Electric System is the The Comerford hydroelectric plant parent company for three retail elec- is one of 14 conventional hydroelec-tric utility operating companies: tric installations owned by the Sys-Massachusetts Electric Company, tem's wholesale subsidiary New The Narragansett Electric Company England Power Company. This and Granite Stzte Electric Company; wholesale company had its genesis a whol? sale generating company, over 70 years ago with the construc-New England Power Company; a tion of the Vernon power station on fuel company, New England Energy the lower reaches of the Connecticut incorporated; and a service com- River. pany, New England Power Service Amid the snow covered mountains Company. and valleys of New Hampshire and Table of Contents Vermont, Comerford Dam stretches 3 Highlights across the frozen Connecticut River. 4 President's Letter The dam controls the flow of water 6 Supplying OurCustomers, to Comerford Station, one of the Energy Needs largest conventional hydroelectric 11 in Search of Understanding stations in the northeast. With a gen-13 We Look to the Future erating capacity of 167,000 kilowatts 14 Management Reorganization of electricity, Comerford Station 16 Financial Review plays a vital role in satisfying peak 18 Management's Discussion and demand and is an important factor Analysis of the Statements of in our diverse mix of hydroelectric, Consolidated Income fossil fuel and nuclear power 19 Financial Statements generation. 30 Map of Service Area 31 Directors and Officers i I t 1 J
1
. t l l
Highlights 3 l l l 1 f i t l t 1977 1976 l ' Earnings per Average Share $2.77 $2.53 Dividends Declared per Share $1.92 $1.86 Book Equity per Share - Year End $24.19 $23.38 Dividends Paid per Share $1.90 $1.84 Operating Revenue $ 775,455,000 $ 701,439,000 Tax Expense $ 126,162,000 $ 120,525,000 Net income $ 55,363,000 $ 49,182,000 p Total Assets $1,775,476,000 $1,711,788.000 { Number of Customers-Year End 1,011,789 1,001,607
)
Number of Employees-Year End 5,629 E.893 , Number of Shareholders -Year End 99,604 98,580 l Number of Common Shares-Year End 20,751,941 19,412,755 ; Number of Common Shares- Average 19,966,442 19,412,755 ' System Maximum Demand - Megawatts 3,191 3,171 i Sales to Ultimate Customers - Kilowatthours (000,000) 14,187 14,087 j I l l kT 2 Robert F. Krause retired as chairman of the New England Electric System board at the end of 1977, after 29 years of wise and constructive serv lce. Mr. Krause Joined New England Electric as an attorney in 1948 and was elected president of New Eng-land Powcr Service Company In 1963. He became a member of the board of directors in 1962 and served as the System's chief execu-tive from 1970 to 1972.
, o _ _ _.
President's Letter 4 l i Energy suppliers operate in a gravely concerned overour f h:.
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.. period ofincreasing chac.ge.
Observersof recent history nation's increasing reliance on j foreign oil and equally con- l iM w ' witnessing the OPEC embargo, cerned over the road blocks FV < ' natural gas shortages and the being placed in the path of in- !
'/qJ \ '
. like, might expect to find our creased use of domestic coal i
'~i NL country vigorously responding and uranium. !
to the urgencyof the " energy in 1977 the Administration i crisis". Rather,we are strug- and Congress addressed this !
$ gling with questions of the en- situation.The current National
; vironmentalimpact of existing Energy Act,is,Iexpect,onlythe :
and proposed energy facilities first in a long series of legisla- t
' y andthesafetyissuesof the tive effortsin this area. ,
nuclearindustry,an industry We at NEES arevitallyinter- I already proven to be one of ested in the attempts to legis-the safest. late answersto our energy 4 Thereis no doubttheseissues problems.This has caused us areimportant.Butwe must be to take an active rolein attempt-
~ N- .._ carefulnot to let them obscure ing to explain the energy facts
'~ -
- the realization that electricity as we see them.Ourelected <
produced from nuclear power officials must be given the very { and coal offers our best chance best information available if j foran ample, secure and eco- they are to weigh properly the i nomic supplyof energy. And we need for change in the laws ! already have the technologyto affecting ourindustry. I produce this energywith both Your equity dollars are at ! cleanliness and safety. workin this rapidly changing j Energy is criticalto our com- energy climate.You deserve a i plex, interrelated economy. return on yourinvestment that ! Energy costs and availability rewardsyou fortaking the risks ! are key determinants to the inherentin today's energy I futurewell-beingof all.Weare world, and we will continue our { effortsto achieve it. l In this regard, System earn- ! ings increased by 9.5 percent i in 1977 to alevelof $2.77.Your i directors again increased your l dividend on July 1,1977,to an ( annuallevel of $1.94 per share. l [ l i
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5 s l In 1977we welcomed over demand and othernuclearor chase olan has nearly twice 10,900 new shareholders and coal-fired facilities may be re- the participants of our earlier sold one and a quarter million quired to substitute for existing plan.Nearly allemployees are new shares.We are pleased oil-burning equipment.in both participating in the new Em-this sale was slightly above cases, new investment is ployee Share Ownership Plan book value as this increases essential, which will be financed partly by theearningspotentialof all This leads me to comment the employees and partly by outstanding shares. that our customers, and you the investment tax credits. Aswe continue to experience investors, have much in com- 1977wasthelast yearof inflation,we realize the morewe mon, including the need fora service forthe System'slong-grow the more rapidly we must reasonable return on both new time chairman, Robert F. construct new high cost facili- and existing equity. Krause.Mr. Krausejoined the ties, sell more new shares, and A companywith good earn- System in 1948,and his years ask for morein theway of rate ings and strong credit ratings of service contributed greatly increases in orderto properly can raise money and build to ourprogress. His retirement compensate new and existing energy facilities atless total led to the election of R.Leigh investors. At t..e same time,our cost than a companyin financial FitzGerald as vice chairman, customers must have available trouble. In the long run,the JoanT.Bok asvice president, to them the energy essential to consumersof thefinancially enlarged assignments for three the economic well-being of the healthy companywill payless of theSystem's othervice region we serve, ti.an the consumers of the presidentsand my electbn as Therefore,a carefully weaker company. chairman. thought out,well-implemented Polarization of consumers I am pleased to report to you plan that will supply essential versus investorsis therefore on behalf of this newteam and I energy economically and detrimentalto both groups. look forward to working with securely and, at the same time, Unfortunately,most consumer them on yourbehalf during keep ourgrowth and corre- groups do not accept this and the coming year. sponding expenditures to a they pressure regulatory agen-minimum,is essential. Our clesto permit onlya minimal capacityand load management rate of return on investment. M [p plans are designed to accom- We must correct this situation February 28,1978 plish this double objective. and find ways toincrease the As we reviewourplanswe recognition of the common in-also realize some new facliities terestsof consumersand must be built to meetincreased investors if you are to receive fairtreatment in the years ahead. Our new dividend reinvest-ment and common share pur-
- - - - - - . . . .~. . .~ __.. _ _ _..,. - ,, .
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i Supplying Our Customers' Energy Needs e l l F l I l i
, -~5 , . Through the 1960's, the growth in
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demand for electricity was relatively
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economies of scale outweighed the l
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routine rate reductions. In this cil-l -
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Electric utilities now have a more , -. . ' , , o- -
%- . challenging assignment.The growth j -
[ rate of electric demand is uncertain. J .ffgkq - N *- Alarge and increasing portion of our W
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y , nation's f ossil fuel supply is vulner-
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able to policy decisions of foreign
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( . ticularly difficult for capital-intensive regulated utilities and for energy ! , . :. /
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/ The physical operations essential
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supply are performed in this chang-V[,' q<l
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Ing social climate.These changes
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,. x - soo ii l $ k. 7 Trash to fuel. Kenneth Small. enief chemist at j ??'"g,'k';$ -Yp, h,' ! g*" ' (71 .
1 ,, South Street Station. Providence. R. l.. exawnes
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l l l 1 l 1 Energy at the System Level i Adequate generating capacity, a I well-rounded and diverse mix of 1 hydroelectric, nuclear and fossil- I fuel generating plants and a care-fully executed fuel purchasing strat- l l egy enabled us to provide good a r ' electric service to our more than one I million customers in 1977. g , . i Because our most recent genera- ' ' " j j {' 7 { ting plant additions were planned
- and built based on higtier pre- by _ d J.~+.m.g & - m ._.
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embargo growth patterns, System [@[N; j 3 $ [.3 G,h3[f M; c'& l companies have more capacity than *~ ppg.Q.i_W2 NY:"FF W$Nd@~Qws$M b M% necessary to meet current demand. ~ #5 2 M7 M vN. i E 553h=. - NM . Considering high construction costs and the difficulties experi-Ih %_k d, I
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enced in siting new plants, it is for-m i tunate this is the case. These gen- - g l erating plants are, for our customers, ' l like " money in the bank." ; We realize, however, electric j loads are growing once again. For < our customers, this growth was ap- I proximately two percent on a tem- l perature corrected basis in 1977. A dnti ship and drilling rig probe the floor of the Gulf of Mexico for oil od natural gas reserves. The i ru,, ,,,,,,,,,,, ,,,,,,, ,, , ;,,n, ,,nto,e of our subsidiary. New England Energy incorporated. and l The mix of different types of gen- samedan oil corporation of Ardmore, okta. j erating plants which are available to However, environmental controls We have increased our oil storage i meet System company needs pro-vide the protection of diversity. on coal burning currently remove capacity and currently have some j Given the problems of world fuel ne of the more important options coal in reserve. We have given act_ve i i supply, this is a valuable asset. provided by this diverse mix. This is support to a d~..A. ,.Pateg,c i l unfortunate for many reasons, in- petroleem reserve program for both l NEES Capacity Mix ciuding the good environmental crue , oil and residual fuets. 1977 record achieved during the 18 months Another effective means of in-when we were allowed to burn ct".;. creasirg cur re9 ability of supply is im We are hopeful that prese f egula- to own it ieast part of our own fuel so tory obstacles will be relaxed, allow- sources, in 1974, we entered into a l , . ing us to burn coal in at least 50 partnership with an oil and gas ex-M Nuce s% percent of our fossil-fuel capacity pioration company. To date, the during the next two years, partnership's estimated cost of find-While progress in our efforts to ing and producing fuels is about one so - - use domestic coal has been slow, half of what we pay for oil through
.o -
other steps have been taken to in- contract purchases.
- 3 crease our security of fuel supply. A similar program is under con-sideration for the development of coal and uranium supplies. The Sys-
# 'O tem has been involved in negotia-tions over the past year with coal
, e i 8 i
and uranium mining companies to - m ?, establish joint ventures for the dis- -t - ' covery and production of these fuels. *gM.' ' , ,
.y ,ase, We recognize that every million .. -
q J gl8 .y, tons of coal burned saves importing -} 7 ," .N.; * { i j pl F four million barrels of fuel oil. And, every 1,150 MW nuclear unit brought on line reduces our nation's need to
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C ff'i v+ - 4 , import oil by about twelve million lNF** ' ~ barrels each year, 41 p@ J ' We are encouraged by our ,
,i progress to date in acquiring basic " ' '
s energy resources. As long as the - 1 OPEC cartel controls the market s price of oil, we believe that owning , at least part of our own sources of ~'
~
basic energy is in the best interest of '
~
our customers. Overall, our System's capacity situation is relatively good consider-ing quantity, diversity and fuel sup-ply. Long run, however, we must q~ i y i Wy ]3h, obtain permission to burn coalin . 2 existing units and to build nuclear /
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.y pjd_ ?g m}
units to meetincreased loads and to
._ ' , , _j substitute in part for some existing ,
base load oil-fired generation. -r~""'^""~"~"'* ~ '
~ ~ ' ~ ~ ' ~
Energy in the New England Region g Two significant developments p occurred in 1977, ig. , y ^3. .3 . 3 First, nuclear energy provided C *' - i about 32 percent of New England's b L 1 total energy needs compared to only hhh Ci. ~~WWY~i,,Y E NWW**" 14 percent five years ago. This QXsg.ggggg g,,m 4 energy from nuclear plants is q .QF,T$,$ $$ Q roughly half the cost of energy from 4 DWiK[WWrM14CETCk.Y.hh[h e.,. 9'3 OfWW:M ' NkC h
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regional base load fossil plants. u
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_~ Cooling pumps at the Yankee Atomic Pfent. Rowe, Mass.Just one of several hundred safety devices in cperation at this nuclear power ge9erating station. oil tanker prepares to dock at Grayton Point M station to off-load cargo of fororgn oil, oil storage ~
- l. .t tank and reserve coal pile are in foreground. _ le #4 1
9 Second, construction resumed on the nuclear plant at Seabrook, New Range of Power Costs Hampshire. Our wholesale com. 15 Year Levelized (1986 Installation) pany, New England Power Company, at 70% Capacity Factor - Base Load Alternatives Unernber 31,1977 owns about 10 percent of this project. ym Work on the project had been W Fuel Cost Variation 112.0 111.5 stopped for several months as the 110 a capital cost variation Environmental Protection Agency, the Nuclear Regulatory Commission - cenotes Most probable varue and the courts became entanglbd in so , the plant licensing question. gg , 82 6 81.7 Despite Seabrook's restart, the 8 # 75.9 struggle to license and build nuclear " ' facilities continues. Scheduled in- es.7 j 68.5 service dates for eight new nuclear so . units slated to come on line in New 58 9 1 - 54.5 53.7 England in the 1980's were deferred so 43.9 m " from a few months to a number of , years during 1977. Reasons for thece 40.1 delays vary from site acquisition so 37 0 c s problems to inadequate rate relief, Ugg s s0r$r #0n 0 'NUw"* resulting in the inability to finance eoouw soo uw soo uw on a reasonable basis. Two schools of thought have de. 10 percent less than a nuclear plant. Charlestowr., Rhode Island, for op-veloped surrounding the need for This is due, in large part, to the ex- eration in the late 1980's. An alter-new plant construction. One school tensive emissions control devices nate site has been acquired nearby holds that all new generation should needed to reduce the environmental in Westerly, Rhode Island, but we are be postponed until clearly required impact of coal-fired facilities. still seeking ownership of the more to meet increased loads. However, this slight construction desirable Charlestown site. The second school believes that cost advantage is more than cffset Considering the mounting difficul-new nuclear or coal-fired units are by the cost of coal which is roughly ties encountered in efforts to build also justified on the basis of a more three times as expensive as nuclear new facilities New England is fortun-secure fuel supply and the possi. fuel. ate that its overall electric energy bility of reduced fuel costs oy sub. Our experience with the six nu- growth rate has been roughly half stitution for oil-fired generation. The clear plants now operating in New pre-embargo levels. Without this possibility of a future oil embargo England and ali of the studies done slowdown in growth, the maze of and soaring oil prices provides for our System and our regional today's licensing processes would support for the latter theory. power pool lead us to conclude that have already reduced this area to in any case, the strong likelihood nuclear power will continue to be the point of energy rationing. of increased load growth supports more economical than coal for this The bureaucratic tangle here in going ahead at today's costs with region (see chart above.) New England and at the national construction of economical genera. Based on these considerations, level must be promptly sorted out if tion that will utilize secure energy our System continues to work for a the essential new facilities to meet supplies. nuclear plant at the abandoned tomorrow's energy needs and to But, should our region build naval auxiliary landing field at maintain a healtnf secure economy nuclear or coal-fired facilities? The are to be constructed in timely
, construction cost of a coal-fired fashion.
plant in New England is only about i
6 10 We agree with both points, and our The National Energy Plan mai as 4 rotei up 23 e system companies are assisting in Millions of BBLS/ Day of otner 2.3 the development of new generating Oil Equivalent technologies, from solar energy to
/ uranium a a up res fusion, from the fuel cell to fluidized N8' 87 / bed combustion.We are also help-ur u io coom,Se'i/3'd
' ing to develop coal-derived oil and coai r.1 (comesue 7.s -
Exponed o 0 7r "$l$y Exponed 1.21 up 87s gas, and even fuels derived from ggg gg g pgg
". On the basis of our industry's re-yd%% search to date, we agree with the fo*[m'e' t?/N imponed .s>
NkI i pjgggg h (Um"Es' tin'sy impon ,n d ojj 1977 national energy plan premise that relatively clean and inexhaust-WPW ible sources of energy are only a f[!,{ ; oi, 37 , WWpundW M,M N 3 toomestic io.s + next century, they will merely cupple-
'*""*d*
ou 17.o e
--kh _,,,...- ment conventional energy Total od up 4s (Domestie 9.7 -L imponed 7.3) resources.
U _ ;. *"$p* eS Another part of the 1977 energy
,9 ) plan calls for the conversion of oil Imagned,04 ,
l' and natural gas-fired facilities to the 1W6 1985 with Plan use of coal. However, it fails to re-movc the roadblocks of ever more Energy at the National Level The principles of the Administra- stringent environmental restraints. The future of New England Elec- tion's national energy plan proposed Therefore, significant progress in tric and other energy suppliers will in April of 1977 do provide a frame- this area is unlikely in the near be determined in large part by work for energy progress. That future. national energy decisions. plan's emphasis on conservation is Still another energy issue being The Administration and Congress valid. But, it would be irresponsible addressed by Congress is electric have been working for many months to rely only on conservation as the utility rate regulation. Legislation on on new legislation aimed at solving problems associated with shortages this subject provides for further our energy dilemma. While they en- of energy far outweigh the penalties funding of intervenors and greater gage in this effort, OPEC continues of building energy facilities in involvement of the federal govern-to supply increasing amounts of advance of need. mont at nearly alllevels of rate regu-energy used in this country- These facts lead us at New Eng- lation. These moves will, unfortun-roughly half cf our supply of oil and land Electric System to promote ately, only result in more delay in l nearly one-quarter of our total basic conservation and to place equal the regulatory process. energy needs. emphasis on construction of new In summary, development of a From the viewpoint of domestic facilities that will provide a secure rational energy policy in this coun-energy suppliers, the action of our source of electricity for our trv, which will enable us to serve our ! elected officials in 1977 appears customers. ' customers reliably and efficiently, spotty and wide of the mark. The national energy plan pro- has made only modest progress in I posed in Aprilindicates that coal and 1977. Much remains to be done. ! nuclear are the only real generation choices for utilities for the foresee- , able future.That plan also states i the use of less conventional sources i of energy must be vigorously devel- < l oped for eventual future contribu-tions (see chart above.) ! 1
InSearchof Understanding 11
~~
, c.% i f Earning the goodwill of our custom-
.. )') i (q' ers was once a simple matter. Prior to the oil embargo, when electric s
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bills were low, all that was asked of
~ .$ us was to provide good, reliable j k Q.'$
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I., .? , ' Electric companies were not an p.,.g ; c >g'
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v majority of people. The time and J). '
. k +,j of manpower saved by electric living
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, our modern society, and the provid-
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ers of this benefit were generally held in high regard.
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'.4s W th unprecedented suddenness, f ,,j ,
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- f. this amicable relationship came to
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The energy crisis caused oil prices 7 , - . 7.. f-?. N . jp ., 14 - s y',. to soar, pushing the cost of elec-y.# ,
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tricity to a level never experienced v- . p a j f by contemporary consumers. The 9
,, .. ;c . j- ,- - resulting strain on the family budget caused great consternation. In the
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g eyes of many, the cause was the
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- Socne felt a trust had been be-
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trayed. The result, understandably, E/ {] .; _ g .s- . 7'. l,' was anger and frustration. Our opin-
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I lon polls showed a drop in the level [k
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'4 cent to 38 percent in one year -
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. .. corporate goal has been regaining
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' 1; been to minimize costs while con-
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, .. 't , customers (over 70 percent) have
, ,,e . > (' consistently given the company high Y'y.
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. marks for providing reliable service.
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.w . , pen,- through twelve on subjects ranging b * ]
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from electrical safety to the eco-nomics of investor-owned utilities. j t '
' / Energy conservation was strongly !
M ; , . encouraged during the past year.We l ( . designed a do-it-yourself home in-1 3 ' 1; sulation program for customers !
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which was offered along with an s energy-saving " water widget". The m % e asumas ~ Y widget, a small disc designed to fit l l M, standard showerheads, reduces the ;
- D water consumption for showers and, ;
C in this way, reduces domestic energy l
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, needs. l
%o ,. ; g ~4 g More than 200,000 widgets and j k , 'jp q s, ~ ,, insulation books have been j 4 -
distributed. ! C I In 1977, we continued our face-to- ' 8L * -- - face exchange of information with Beverty Teevan conducts Massachusetts Electric Co/s electrical safety program for fourth graders at the Lincoln School, Lynn. Mass. customers through regular meetings { of the Massachusetts Electric Com- ; But, in today's consumer climate. Another important partnership has pany and The Narragansett Electric ; gooo service is not enough. Our been formed between the company Company Customer Advisory approach has been to develop and l and 100 large industrial customers to Councils. i implement programs which clearly test the feasibility of time-of-day rates We also offered appropriate par-demonstrate the common interests ! for industry. The goal of this program cels of our land to customers for j of customer and company. is to develop an effective means of home gardens. About 1,500 custom- l A good example of this is our solar shifting the industrial demand for ers took advantage of the offer, ard olectric water heating test program, power away from periods of maxi- i the program earned an Environ- ! now in its second year. In this case, mum use. mental Awarness Award from the ! we have formed a partnership with if we are successful, both parties Commonwealth of Massachusetts. ! some 100 residential customers to will benefit. industry will have great- We appear to be making progress. test available solar equipment under er control over its long-run cost of Our opinion surveys have shown a ! actual operating conditions. electricity, and the company will be gradual improvement in customer j The customers involved be' refit able to make greater use of its most acceptance. The most recent survev 1 from the acquisition of the solar efficient generating capacity. equipment at a cost far below mar- in June of1977 shows that some 65 In addition to these prograrns, and percent of our customers have a fav-ket price and from the reduction in as part of our management reorgani- orable attitude toward their electric their normal cost of heating water. zation (see page 14), we have placed company. The company, for its part, gains re- our transmission and distribution We realize, of course, that many search data relating to the impact function under the direction of local factors affect public attitudes and
- of solar heating on company peak field management, thus bringing the that we cannot take full credit for
( demands and the market potential decision-making process closer to this improvement. Neither are we of solar equipment. the customer in an effort to improve satisfied with these results. We are service. encouraged, however, that we are To further customer understand- moving in the right direction. ing of energy-related problems, our educational services program has been expanded. We are now offering a variety of programs in grades four
Wolookto the Futuro u i l l I ( -
+ _.. If we, as a nation, can come to '
a'.[ 9 .; (
. g. ' T grips with this situation today, we j i
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, , g* $ ' , ',Y can avoid some of the problems of i N 1 the third phase and probably limit ;
' 4<x'4 s W: -
the length of the second phase to !
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- k . one or two years. {
e But will we? Our nation's struggle l
. . p -
,,.- with deregulating the price of natural >
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gas suggests our elected officials l' are making slow progress in their A
^ 4e understanding of energy matters. i But there is increasing realization, f
.. 24. both by industry and by social action !
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h, groups, that an adequate energy ! 1W [~ ,. .1 .
. ',. - supply is essential to the economic l
.. - e , well-being of the nation and the im- l l .f 'N
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( provement of the quality of life of the l
,- J f disadvantaged.
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. , - - The National Association for the ;
A mechamcal arm moves over fuel storage rack at the Yankee Atomic Plant, Rowe, Mass. Advancement of Colored People { (NAACP) recently announced an i The electric utility industry is available to keep an energy problem energy policy recognizing the link l
' uniquely capable of making a major from becoming an energy crisis. between an adcquate energy supply !
contribution toward solving tomor- The free world appears to be in ar'd a prosperous economy that will : row's energy problems. There is in- the first of three energy phases: provide jobs for those needing work. j creasing realization that for the namely, a temporary surplus of oil Based on this recognition, the ! balance of this century, the sources that will probably last from two to NAACP recommends the further of energy best able to fill the gap four years. development of nuclear power, between oil demand and supply are We expect this first phase will be including the breeder reactor. coal and nuclear energy. followed by a three to five year if understanding of this kind For all but the very largest energy period when world oil supplies will spreads quickly, we can avoid the : users, these basic energy sources barely match demand. During these disruptions associated with phases ! must first be converted to electricity years of uneasy balance, any minor two and three. As an energy system, I at facilities large enough to accom- crisis, such as a fire in a major oil we realize we have a responsibility ! modate economically the required pumping station on the trans- to help further this understanding. ' environmental protection and safety Arabian Pipeline, will trigger spot Here, at New England Electric, i features, shortages and steep, but probably we are fortunate to have a diverse Acceptance of this role is not uni- temporary, increases in oil prices. . mix of basic energy sources for our ! versa'. Those who desire to limit The third phase will be a period of generating units, a temporary sur- I economic growth see restrictions on serious shortages that may last as plus of generating capacity and a the development of these energy re- many as ten years. This will be a time load growth pattern that gives us sources as a means to that end. We when our national economy will be breathing room to adjust to the believe they are a small minority but energy limited. Oil prices will rise changes we see in the years ahead. recognize their proven abilities to sharply in real terms and remain at a This is a sometimes frustrating but use the bureaucratic, legislative and high level. The political conse* always challenging time for all judicial processes to move toward quences of the lagging economy energy companies. We believe the their objective. and high prices willlead to crash opportunities are great for your At the same time, we recognize we programs to bring on line those System to make a positive contribu-have used up most of the lead time facilities needed to provide secure tion to our energy future. sources of usable energy.
Management Reorganization 14 i Robert F. Krause retired as chairman Vice president John F. Kaslow - 2 l of the board at the end of 1977, as took on responsibility for engineer- 1 -
'% )
reported on page three, ing and environmental affairs in : v j i Guy W. Nichols, president and addition to power production ' j chief executive since January 1, operations. l ., T 1972, was elected to the additional Vice president Paul J. Sullivan < ,
}' ;
l I position of chairman of the board. assumed direct responsibility for - Mr. Nichols joined the System in transmission and distribution opera- 4 l 1947 and served in a variety of oper- tions in addition to retail manage- $
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ating positions prior to his election { ment, customer service and public 8 j ! to the board in 1968. information. Fp i in connection with these changes, Edward A. Brown was elected ! a number of moves have been made president of the System's Service ! to broaden the experience and the Company. Mr. Brown now has ad- l
- responsibility of top System execu. ministrative respensibility for the , j l tives. System's personnel, labor, purchas- f ;
I R. Leigh FitzGerald, formerly ing, computer services and con- .> financial vice president, was elected struction activities. System vice chairman and president Richard B. Dunn and Donald G.
' f' -
of the System's wholesale subsid-lary, the New England Power Com-Allen continue their current respon-sibilities. Mr. Dunn is vice president,
'%( '
pany. general counsel and secretary. Mr. ' James E. Tribble became vice Allen is the System vice president , j president - finance, after serving for responsible for rates and nuclear - a number of years as vice president licensing snd regulatory activities. n. teign p;;zo.,ard for capacity planning, engineering, Each of the five principal subsid-
"~' ~ ~ ~'
construction and research and lanes is now headed by an individual = development. president with responsibility for its ~ l Joan T. Bok, formerly a vice presi- corporate success as well as its , ;_ ,h Q , dent of the System's Service Com. coordination within our integrated ,. i, j pany, was elected a System vice System. m president with responsibilities for capacity planning, power pooling, research and development and long-range planning for System com-panies. l l
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James E. Tnbble
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l 1 Financial Review 16 1
\
i Earnings and Dividends 1977 Rate Filings Favorable Court Decision Earnings increased in 1977 to $2.77 NEES subsidiaries continued to file A decision of major importance in ' I per average share, compared to for rate increases in 1977 in order to rate making was handed down by the
$2.53 in 1976 on fewer shares. Total generate the new revenue required Rhode Island Supreme Cour't on f net income was $55.4 million in 1977, to offset the effects of inflation on December 30,1977. The court held j compared to $49.2 million a year operating costs, and to increase rate unanimously that rates allowed un-ago. Factors giving rise to th's in- of return on investment to levels der federal regulation to be charged i crease in net income are discussed more consistent with the cost of by New England Power to Narragan-i on page 18 and in Note J. capital in today's inflationary environ- sett Electric must be treated by the i ment: Rhode Island Public Utilities Com-t Earnings Proposed mission as operating expenses of
, Per Average Share from Annual Narragansett, even if these rates are Continuing Operations Company Fifed increase subject to refund. This decision has {
' New England Power 12-1-77 $14.300.000 been stayed pending a petition for j ,
Mass. Electric 11-16-77 $15.400.000* review by the RIPUC in the U. S. 2 80 1 . ( - Narragansett S-27 77 $ 7.000,000 t .i Granite State 4-22-77 $ 1,100.000 Supreme Court. If the petition is includes $10 million, one time surcharge denied, Narragansett will be able to ! 2 eo '. :
- ..s. for extraorainary storm damage in 1977. recover its full purchased power The retail companies have also filed costs, retroactive to February 3, 2 4c . for pass-through of the New England 1978. ,
Power rate increase, beginning on This decision by the Rhode Island l - Supreme Court makes it even clearer I 2 20 June 1,1978. the date that this in. that the System is much more de-crease will go into effect, subject to j refund. All these 1977 rate filings are pendent on federal regulation than on 8" still under review and not yet effec- state regulation. Over seventy per-73 74 73 7s n tive, except that Granite State was cent of consolidated revenues flow Dividends were increased to $1.94 allowed a temporary increase of through the New England Power per share on an annual basis, effec- Company, whose rates are regulated ] $750,000 annually on August 11, j tive July 1,1977. This represents an by the Federal Energy Regulatory 1977, subject to refund. , j increase of 4.3 percent over the pre- Commission. This is fortunate be- l l vious annuallevel of $1.86 per share. Rateincreases Approved cause federal rate regulation is ) I Dividends declared in 1977 totaled The Federal Energy Regulatory relatively forward-looking in a num- j { $1.92 per share. Commission recently approved New ber of respects.
! England Power Company rate ! Dividends increases totaling nearly $52 million New Revenue
! Declared Per Share annually. The new revenue that the from Rate Cases
! System now receives as a result of (%llions Annually) l ,
.;, general rate cases put into effect over "" I i j the last five years is approximately ,e i i 2m- '
j 3- $143 million annually,not including I l ; e ', the 1977 rate filings described above. ,2o ' I ix -" - Of this total, $35 million on a current I ' <l .
.7' '
annual basis is still subject to refund, im - I I - gE." pending final action by the new Fed- I l
, r. , UC . Qg eral Energy Regulatory Commission. " ,
l M4 ".gyg i , l d je - ;i . [' ~ h .f . l ,, Tfd% < GN, WriP e' , f l 73 '74 '75 76 '77 ; , l I i j I l o I I I l 73 74 7s 7e 77
~ Rates fully in effect Rates subject to possible refund I
i 1
17 1977 Financing million annually of new common Common Share Ownership
'In January 1977, New England Power equity is being provided over this December 31,1977 j Company sold $50 million of 30-year period by the NEES Dividend Rein-i General and Refunding Mortgage vestment and Common Share Pur-Bonds to underwriters for a cost of chase Plan, and the NEES Employee - - - '
money to the company of 8.58 per- Share Ownership Plan, as described 1 - 99 snares y, ,(, , 4. . ..n
,o in the following section.
cent. Proceeds of this issue were In addition to this new equity,in-used to reduce the level of short- 30a . 499 , term debt. ternally generated funds (excluding 5 # In March 1977, Massachusetts AFUDC) are expected to make up ' Electric Company redeemed 100,000 approximately 60 percent of the 2,000 - 4 999 - : , shares of 9.44 percent Series Cumu- capital needed for construction for s.oco . 9,999 lative Preferred Stock at a call price several years to come. ., of $108.59 per share. 1mo a our .. In May 1977, NEES refinanced Construction Expenditures rotais
$27.5 million of maturing 3% percent Excluding AFUDC Debentures with a ten-year note at (Millions Per Year) 8% percent, which was placed with I Sales Growth an insurance company. l Sales to ultimate customers by Sys-In July 1977, NEES sold at com. 2x 7
i tem companies have been growing petitive bidding 1.25 million shares at a very modest rate over the three of common equity to underwriters at 12 years since the oil embargo in 1974. a price of $24.177 per share, which This slow growth rate has permitted was just above book value at that ,oo System subsidiaries to reduce con-time. Net proceeds to the System struction and financing needs. totaled $30.2 million. NEES is committed to an active
" program of load management,in-Future Financing New England Power Company plans volving conservation, time-of-day to issue about $50 million of General o rates, and load control systems. In
" " * *
- this era of rising construction costs, and Refunding Mortgage Bonds dur.
ing 1978 or 1979. There may also be Common Share Purchase Plans a modest growth rate with limited de-an issue of preferred stock of about NEES shareholders received a new mands for outside financing is in the
$25 million by New England Power Dividend Reinvestment and Com. best interest of the customer and during this period. mon Share Purchase Plan with con- shareholder alike.
Retirements in 1978 will include siderable cnthusiasm, when it was first offered in September of 1977. Electric Sales
$7 million of Series B,3 percent This new plan permits shareholders to Ultimate Customers bonds of The Narragansett Electric (Milli ns f kil watt. hours)
Company in May, and $11 million of to reinvest their dividends in NEES Series B,3 percent bonds of New shares at a 5 percent discount from _ .
*1 England Power Company in July. market price and make additional nesidentiai 75$702 s.4e4' s,338l!
share purchases at market, without
- No public issue of NEES common shares is planned for 1978 and it is any service or brokerage fees.The number of shareholders who are auto-commercial M ' 4',f47! .T4,ogi unlikely that there will be any public issue before 1981. Approximately $8 matically reinvesting their dividends industrial $[i.Yi ud sst 3.3so .3,74s in NEES jumped from 6,200 under ___
the old plan to over 11,000 with this ain,, b,3 ', new plan. f _ ,f in addition over 82 percent of our g,, g employees have elected to put their - 1 owndollarsintoanEmployee Share 'Aciusted for change from Ownership Plan. This will increase the number of shares available to
, them through new investment tax credits under the Tax Reduction Act of 1975.
Management's Discussion and Analysis 18 of Statements of Consolidated Income Operating Revenue, derived prin- Fuel for Generation, which accounts cellation of an oil-fired generating cipally from sales of electric energy, for about one third of our revenue unit at the Salem Harbor thermal increased by $74 mlIlion in 1977 and dollar, increased by $42.4 million in generating plant in 1975 and $2.5
$40 million in 1976. Of this increased 1977 after a decrease of $19.6 million million from increased plant invest-revenue, approximately 45 percent in in 1976. A 19 percent increase in the ment and higher depreciation 1977 and 78 percent in 1976 was from cost of fuel burned at thermal gen- rates. The 1977 increase was not general rate increases (see Note J of erating ,tations was the primary significant.
Notes to Financial Statements re- cause for the 1977 increase. Taxes, other than Federal Income garding revenue subject to refund) Purchased Electric Energy in. Taxes increased by $4.8 million in The change from bimonthly t creased by $12.8 million in 1977 and 1977 and $10.9 million in 1976. The monthly billing in 1976 mereased 6
$11.7 million in 1976. An increase in increases resulted primarily from a o the cost of electric energy pur. increases in tax rates for municipal e h hased under unit purchase con-ever, have a material effect on 1976 property and from increased state tracts was responsible for the m. taxes.
net income because of the federal income tax effect and expenses crease in 1977. The net incmase in Federal income Taxes increased 1976 was due to increased pur- by $900,000 in 1977 and $9.1 million related to the shift to monthly billing. bases of power under unit con- in 1976, primarily from increases in Kilowatthour sales to ultimate customers, after reduction for the tracts and reduced sales to the New taxable income. More detailed in-England Power Exchange. formation concerning federalincome change to monthly billing in 1976, increased slightly in 1977 and 5.7 Maintenance expense increased taxes can be found in Note B of percent in 1976. Sales to municipali- by $3.3 million in 1977 and $5.9 mil- Notes to Financial Statements. ties and unit contract sales de- tion in 1976. The increase in 1977 re- Allowance for Funds used during creased in 1977 and 197S due to re- flects extraordinary storm damage Construction increased by $3.9 mil-duced takings by municipalities and during the Winter and Spring of 1977. lion in 1977 and $2.4 million in 1976 the expiration of unit sales contracts. The 1976 increase was due to an in- primarily due to increases in con-The impact of these and other crease in the level of generating struction work in progress. Addi-factors on revenue is shown in the unit maintenance which had been tional information can be found in following table: deferred during a five-month strike Note A of Notes to Financial increase (Decrease)in Operating in 1975. Inflationary pressures dur- Statements. Revenue ing both years contributed to the 1977 1976 cost increases. Preferred Dividends of Subsidiaries U" " "O- Depreciation and Amortization in- decreased by $800,000 in 1977 after Recovery of fuel costs $48 $(3) an increase of $1.9 million in 1976 creased by $1.4 million in 1977 and a creas s 33 31 The 1977 decrease resulted from
$5.1 million in 1976. The 1976 in- the redemption of $10 million of a crease included $2.6 million of amor- subsidiary's 9.44 percent preferred tization in connection with the can- stock in March 1977. The increase in Un t sa s ontracts (3) (1)
Sales to municipalities (2) (1) 1976 resulted from the issuance of Temporary surcharge - (5)
$25 million of 11.04 percent pre-Monthly billing and ferred stock by another subsidiary other (3) 8 in September 1975.
$74 $40 i
6
N;w England El;ctric Syst:m and Subsiditrl;s Statementscf Consolid;tedIncome 19 Year Ended December 31, 1977 1976 1975 1974 1973
,. (In Thousands) - Operating revenue (Notes A, H and J) $775,455 $701,439 $661,216 $586,205 $410,374 Operating expenses:
Fuel for generation 249,755 207,377 227,018 196,301 73,309 Purchased electric energy: Fossil and interchange 46,776 37,345 25,018 46,863 25,793 Nuclear entitlements 34,435 31,099 31,666 26,431 24,112 Other operation 117,605 113.482 97,966 85,627 82,806 Maintenance 37,847 34,581 28,690 28,129 26,643 Depreciation and amortization (Notes A and C) 54,360 52.920 47,850 38,780 35,025 Taxes, other than federal income 74,131 69,346 58,391 54,827 51,779 Federalincome taxes (Note B) 52,031 51,179 42,061 27,247 20,047 Total operating expenses 666,940 597,329 558,660 504,205 339,514 Operating income 108,515 104,110 102,556 82,000 70,860 Allowance for equity funds used during construction (Note A) 6,324 3,768 2,889 7,177 6,376 Equity in income of nuclear power companies (Note A) 3,631 3,615 3,473 3,178 3,334 Other, net 2,089 1,882 1,348 451 14 Operating and other income 120,559 113,375 110,266 92,806 80,584 Interest: Interest on long-term debt 54,589 50,527 46,749 37,632 30,622 Other(Note D) 2,432 3,353 7,212 16,096 10,654 Allowance for borrowed funds used during construction-credit (Note A) (5,311) (3,963) (2,433) (10,857) (5,950) Total interest 51,710 49,917 51,528 42,871 35,326 Income after interest 68,849 63,458 58,738 49,935 45,258 Preferred dividends of subsidiaries 13,486 14,276 12,366 11,517 10,347 Income from continuing operations 55,363 49,182 46,372 38,418 34,911 Income from gas subsidiaries' operations sold (Note A) 2,232 Income before extraordinary item 55,363 49,182 46,372 38,418 37,143 Extraordinary item -gain on sale of gas subsidiaries (Note A) 8,074 Net income (Note J) $ 55.363 $ 49,182 $ 46,372 $ 38,418 $ 45,217 Average common shares 19,966,442 19,412,755 18,683,588 16,912,755 15,805,116 Per share data: Income from continuing operations $ 2.77 $ 2.53 $ 2.48 $ 2.27 $ 2.21 Income from gas subsidiaries' operations sold (Note A) .14 Income before extraordinary item 2.77 2.53 2.48 2.27 2.35 Extraordinary item -gain on sale of gas subsidiaries (Note A) ,51 Net income (Note J) $ 2.77 $ 2.53 $ 2.48 $ 2.27 $ 2.86 Dividends declared $ 1.92 $ 1.86 $ 1.78 $ 1.78 $ 1,73
/
Tho accompanying notes are an integral part of these financial statements.
New Englind El:ctric Syst m and Subs!diarias Consolidated BalanceSheets 20 At December 31, 1977 1976 (in Thousands) Assets Utility plant, at original cost (Notes A, E and M) $1,735,684 $1,694,792 Less -accumulated provisions for depreciation 421,130 383,691 1,314,554 1,311,101 Construction work in progress (Note 1) 178,968 130,735 Net utility plant 1,493,522 1,441,836 investments (Note A): Nuclear power companies, at equity 38,466 38,582 Other, at cost 28,007 19,212 Total investments 66,473 57,794 Current assets: Cash, including temporary cash investments of $49,600,000 and
$54,850,000 S2,510 67,864 Accounts receivable, less reserves 87,332 78,211 Fuel, materials and supplies, at average cost (Note I) 53,531 49,797 Prepaid expenses and temporary deposits 1,404 2,355 Total current assets 204,777 198,227 Deferred charges 2,998 3,625 Unamortized property loss (Note C) 7,706 10.306
$1,775,476 $1,711,788 Capitalization and Liabilities Capitalization (see accompanying statements):
Common share equity $ 502.031 $ 453,799 Preferred stock 188,598 198,601 Long-term debt 771,425 716,974 Total capitalization 1,462,054 1,369,374 Current liabilities: Long-term debt due within one year 17,996 29,222 Short-term debt (Note D) 44,325 75,100 Accounts payable (Note 1) 50,546 57,679 Accrued taxes 15,622 23,618 Other accrued expenses 15,791 18,432 Consumers' deposits 3,030 2,272 Dividends declared 11,310 10,509 Total current liabilities 158,620 216,832 Other reserve and deferred credits 3,835 2,842 Deferred federal income taxes (Note B) 110,249 87,811 Unamortized investment tax credits (Note B) 40,718 34,929 Commitments and contingencies (Notes I, J and K)
$1,775,476 $17
. ___ _1_1_788 The accompanying notes are an integral part of these financial statements.
Ntw England Elictric Syst:m and Subsidiarias Consolidated Statements of Capitalization 21 Amount Percent of Total At December 31, 1977 1976 1977 1976 (in Thousands)
~ Shareholders' equity (Notes F and G)
Common shares, par value $1 per share: Authorized - 30.000.000 shares Outstanding - 20,751,941 and 19,412,755 shares $ 20,752 $ 19,413 Paid-in capital 306,332 275,417 Commissions and expense on common shares (2,045) (2,045) Retained earnings 176,992 161,014 Total common share equity 502,031 453,799 34.3 % 33.1 % Cumulative preferred stock of subsidiaries (Note F) 4.44% to 4.76% 59,514 59,514 6% to 6.08% 18,014 18,014 7.24% to 7.84% 50,000 50,000 8% to 8.68% 35,000 35,000 9.44 % 10,000 11.04 % 25,000 25,000 Premiums 1,070 1,073 Total preferred stock (annual dividend requirement $13,332,000 and $14,276,000) 188,598 198,601 12.9 % 14.5 % Long-term debt Mortgage bonds of subsidiaries: Maturity Interest Rates 1978 3% 17,996 18,096 1979 2%% 10,500 10,500 1980 10% % 24,250 25,000 1981 2?'s % to 3% % 24,000 24,000 1982 3%% to 9T's % 69,700 71,350 1983 through 1987 3%% to 3%% 63,088 63,088 1988 through 1992 4% to 5% 119,500 119,500 1993 through 1997 4%% to 6%% 59,600 59,600 1998 through 2002 6%% to 8%% 145,000 145,000 2003 through 2007 8% % to 10l'a % 217,300 170,000 Total mortgage bonds 750,934 706,134 Note of subsidiary,9% % due 1986 8,000 8,000 Note of New England Electric System,8% %, due 1986 27,500 Debentures of New England Electric System,3% %, refunded 1977 29,500 Less amounts held in treasuriet, (385) Unamortized premiums 2,987 2,947 Total long-term debt (annual interest requirement
$55,275,000 and $50,067,000) 789,421 746,196 Less amounts due within one year (17,996) (29,222)
Long-term debt excluding amounts due within one year 771,425 716,974 52.8 % 52.4%
"i otal capitalization $1,462,054 $1,369,374 100.0 % 100.0 %
The accompanying notes are an integral part of these financial statements.
N;w England El:ctric Syst:m and Subsidiarias Statements of Consolidated Retained Ear'nings 22 Year Ended December 31, 1977 1976 1975 1974 1973 (in Thousands) Balance at beginning o' year $161,014 $147,940 $135,011 $126,698 $106,269
~~
Equity in earnings of nuclear power companies (Note A) 2,865 Net income (Note J) 55,363 49,182 46,372 38,418 45,217 216,377 197,122 181,383 165,116 154,351 Cash dividends on common shares 38,529 36,108 33,443 30,105 27,653 Redemption of preferred stock of subsidiary (Note F) 856 Balance at end of year $176,992 $161,014 $147,940 $135,011 $126,698 Statements of Changes in Consolidated Financial Position Source of Fundst From operations: Income before extraordinary item $ 55,363 $ 49,182 $ 46,372 $ 38,418 $ 37,143 Depreciation and amortization 54,360 52,920 47,850 38,780 37,119 Deferred federal income taxes 22,438 13,494 21,289 16,970 9,178 investment tax credits - net 7,540 5,767 3,303 11,106 3,029 Allowance for funds used during construction (11,635) (7,731) (5,322) (18,034) (12,331) _ 128,066 113,632 113,492 87,240 74,138 Dividends on common shares of NEES (38,529) (36,108) (33,443) (30,105) (27,6E) 1 Funds retained in business 89,537 77,524 80,049 57,135 4S,485 From other sources: From sales of gas subsidiaries 34,247 Net decrease (increase) in working capital excluding debt due within one year (22,761) (12,033) 13,361 (41,490) (7,323) - Other sources (net) 1,246 1,749 (1,288) 654 4,064 Total internal funds 68,022 67,240 92.122 16,299 77,473 From financing transactions-Common shares of NEES 32,254 38,050 26,110 Long-term debt -Issues 77,500 8,000 135,000 35,000 80,000
- Retirements (34,315) (20,051) (29,574) (22,081) (2,106) -
Preferred stock of subsidiaries-issues 25,000 20,000
- Redemption (10,859)
Changes in short-term debt (30,775) 41,750 (162,900) 121,300 (36,075)' Total funds from financing transactions 33,805 29,699 5.576 134,210 87,929 Total funds from all sources $101,827 $ 96,939 97,698 $150,518 $165,402 Application of Fundst Construction expenditures, excluding allowance for funds used during construction S 93,148 $ 88,290 $ 93,318 $146,976 $163,934 Investments 8,679 8,649 4,380 3,542 1,468 Total application of funds $101,827 $ 96,939 $ 97,698 $150,518 $165,402 Decrease (iricrease)in components of working capital: Cash $ 5,354 $(28.365) $ (28,519) $ (3,334) $ 2,244 Acccunts receivable (9,121) 9,375 (2,600) (23,104) (4,732) Fuel, materials and supplies (3,734) (4,658) 12,246 (40,104) (2,477) Prepaid expenses and temporary deposits 951 18 181 3,495 (4,728) Accounts payable (7,133) 4,257 6,562 21,656 3,480 Accrued and other liabilities (9,078) 7,340 25,491 (99) (1,110)
$ (22,761) $ (12,033) $ 13,361 $ (41,490) $( 7,323) t1973 includes gas subsidiaries sold.
The accompanying notes are an integral part of these financial statements.
i . Notes to FinancialStatements 23 Note A- Significant Accounting Policies
)
l
. 1. Bcsis of Consolidation:
l The consolidated financial statements include the these gas subsidiaries through the effective accounting j accouats of New England Electric System (NEES) and dates of sale have been included in the statements of consolidated income as income from gas subsidiaries
- all activa majority-owned subsidiaries. All significant intercompany transactions have been eliminated. operations sold. The operating revenue of the gas sub-In 1973 NEES sold its remaining investments in its gas sidiaries was $42,477,000 through the effective account-subsidiaries in compliance with a 1964 order of the ing dates of sale for 1973 and related federalincome tax Securities and Exchange Commission. Under Internal expense was $574,000 (reflecting prior years' credits Revenue Service (IRS) rulings, no federal income taxes of $451,000).
resulted from these transactions. The net income of
- 2. System of Accounts:
l The accounts of NEES and its subsidiaries are prescribed by regulatory bodies having jurisdiction. l maintained in accordance with systems of accounts i 3. Revenue: The subsidiaries record revenue as billed on a cycle There was no material effect on net income as a result billing basis. No revenue is recorded for electricity of this change due to the federal income tax effect aod delivered but not billed. increased expenses related to monthly billing. Pursuant in January 1976 the NEES retail subsidiaries to IRS approval in 1977, the tax effects associated with changed from bimonthly to monthly billing of their resi- this change have been deferred and are being amor-dential and small commercial and industrial customers. tized over a 10 year period (see Note B). i 4. Plant: The subsidiaries capitalize, as part of construction funds used during construction") shown as a reduction l costs, a noncash item called an allowance for funds of interest and the portion applicable to equity funds Jsed during construction (AFDC), at rates which (" Allowance for equity funds used during construction") approximate the pretax cost of furids (7%% for retail shown as other income. subsidiaries, and for the wholesale subsidiary 7%% Tax benefits on the allowance for borrowed funds from January 1,1973 until July 1,1973,8% until April 1 used during construction have been normalized and 1974,8%% until January 1,1977 and 8.76% thereafter). charged to expense (see Note B). Commencing January 1,1977, the wholesale sub- Costs of current repairs and minor replacements of sidiary changed its method of calculating AFDC in plants and properties are charged to maintenance [ accordance with Federal Power Commission (FPC) expense aCC Jnts as Incurred. Plant retired or other-Order 561. In accordance with that order, AFDC has wise disposed of, together with costs of removal less j been reclassified in the Statements of Income with the salvage,is charged to accumulated provisions for portion appilcable to debt (" Allowance for borrowed depreciation.
- 5. Depreciation:
Depreciation is provided annually on a straight-line over their estimated remaining service lives and the basis in amountr.'at least su'ficient to amortize the plants and properties are kept in good operating con-undepreciated cost of depreciable properties over their dition to render adequate and dependable service estimated remaining service lives. In the opinion of the to customers. managements. the accumulated provisions for depre- The provisions for depreciation as a percentage of clation and the provisions for depreciation shown in the weighted average depreciable property by types of j
%ccompanying financial statements are adequate for companies are set forth below.
the purpose of depreciating the plants and properties 1977 1976 1975 1974 1973 j Generating-Wholesale * ' 2.89 2.83 2.79 2.61 2.54 Distribution- Retall 3.42 3.50 3.44 3.30 3.24 Combined 3.15 3.16 3.11 3.00 2.93 3-
- Hydro and therma! ,
n . 24 l
- 6. Investments:
Nuclear Power Companies: In 1973, in accordance with an order of the FPC, a sub- in retained earnings $2,865,000 of undistributed earn-sidiary adopted the equity method of accounting for its ings from dates of acquisition through December 31, investments in nuclear power companies and recorded 1972, substantially all of which related to prior periods. Other: Other investments principaily consists of a!I direct stantial revenue has been realized to date, manage-costs incurred by a subsidiary in conjunction with its ment believes sufficient oil and gas reserves have been oil and gas exploration program. Although no sub- found to recover this investaient.
- 7. Retirement Plans:
The plans in effect for substantially all employees are funded plans which provide retirement benefits, prin- costs are being amortized over a 20-year period. Total cipally fixed and variable annuities. The market value of pension costs, charged principally to operating ex-pension fund assets exceeded the actuaria!!y computed censes, were $10,676.000 in 1977, $9,8C3,000 in 1976, value of vested benefits as of April 1,1977, the latest $6,785,000 in 1975 (reflecting the effect of a five-month valuation date. Unfunded prior service costs are esti- strike), $8,771,000 in 1974 and $8,158,000 in 1973. These mated to be $35,000.000 at December 31,1977. These amounts include amortization of prior service costs. Note B - Federal Income Taxes Federal income taxes consists of the following components: 1977 1976 1975 1974 1973 (In Thousands) Current federal income taxes $22,053 $31,918 $17,469 $ (829) $ 8,279 Deferred federal income taxes 22,438 13,494 21,289 16,970 8,836 Investment tax credits - net
- 7,540 5,767 3,303 11,106 2,932
$52,031 $51,179 $42,061 $27,247 $20,047
- Investment tax credits of subsidiaries are deferred and amortized over the estimated service lives of the plant and equipment giving rise to the credits. Investment tax credits-net principally reflects reductions in current federalincome taxes attributable to such investment tax credits which have been deferred.
Federalincome tax returns for the System and its subsidiaries have been examined and reported upon by the IRS through 1974. Certain subsidiaries have adopted ccmprehensive interperiod tax allocation (normalization) consistent with regu!a-tory approval.The following table details the components of deferred federal income taxes of these subsidiaries. 1977 1976 1975 1974 1973 (in Thousands) Allowance for borrowed funds used during construction $ 2,426 $ 1,788 $ 1,055 $ 5,118 $2,616 Taxes, pensions and other costs capitalized for book purposes and deducted for tax purposes 1,162 1,480 857 2,330 182 Excess tax depreciation 11,603 11,658 11,895 9,686 6.406 Costs associated with oil and gas exploration 4,195 1,142 1,842 77 Property loss (Note C) (118) 6,127 Change to monthly billing (Note A) 6,725 Reversal of prior year tax deferrals (3,193) (2,456) (1.203) (464) . (368) Other (480) 716 223
$22,438 $13.494 S21,289 $16,970 $8,836
. n . 25 Factors affecting federal income taxes are as follows: 1977 1976 1975 1974 1973 (in Thousands) Computed " expected" federal income taxes at 48% $58,022 $55,026 $48,384 $37,048 $31,346 Tax effect resulting from: ! Allowance for equity funds used during construction (3,036) (1,809) (1,387) (3,445) (3,060) , Costs associated with utility plant retirements deducted for tax purposes (1,777) (1,417) (956) (1,780) (1,424) Nontaxable portion of income from investments in nuclear power companies (1,540) (1,456) (1,428) (1,330) (1,442) Taxes, pensions and other costs capitalized less tax benefits normalized (226) (304) (234) (484) (1,783) Liberalized tax depreciation less tax benefits norr'talizJd (39) (89) (145) (500) (1,430) Excess book depreciation over guideline not normalized 1,542 1,164 1,002 268 (567) Reversal of accrued unbilled revenue 2.001 Adjustment of prior year tax accruals 416 (623) (162) (1,235) (677) Amortization of investment tax credits (1,302) (1,116) (1,000) (964) (621) All other differences (29) (198) (2,013) (331) (295) Federal income taxes $52,031 $51,179 $42 061 $27,247 $20.047 Effective federal income tax rate 43.0 % 44.6 % 41.7 % 35.3 % 30.7 % i Note C- Property Loss In 1975 a subsidiary cancelled plans to build a new after taxes) over a five-year period. Depreciation and oil-fired generating unit. Commencing January 1,1976 amortization expense includes $2,600,000 relating to the subsidiary, with FPC accounting approval, began such amortization in 1977 and 1976. ratable amortization of the resultir'g loss ($7,024,000 Note D- Short Term Borrowing Arrangements Short-term debt outstanding at December 31,1977 had The terms of compensating balance arrangements vary maturities ranging from 6 to 11 days.The subsidiaries among banks and generally provide that average have available lines of credit with a number of banks balances be maintained which vary from 10% of the line totaling $120,500,000, the terms of which provide for of credit to 20% of the amount borrowed. borrowings at the prime rate at the time of borrowing. Information as to short-term borrowings is summarized as follows: 1977 1976 Amount outstanding at end of year: Commercial paper $44,325,000 $50,100,000 Notes payable to banks 25,000,000 Total $44,325,000 $75,100,000 Weighted average interest rate at end of year 6.7% 5.4% Maximum amount of borrowings at any month end $53,400,000 $75,100,000 Weighted average borrowings during year $34,915,000 $34,686,000 Weighted average interest rate dJ0g year 6.5% 6.4%
n e 26 Note E- Hydroelectric Projects The properties of a subsidiary include six hydroelectric amount equal to the lesser of (i) fair value of the project 1 projects licensed under the Federal Power Act. Pending or (ii) original cost less depreciation and amounts held processing of relicensing applications, three pr@ts in the related amortization reserves under Section 10(d) > are now being operated under annuallicenses, of the Federal Power-nct, plus in either case severance . Licenses for the three other projects expire in 1993, damages. At December 31,1977 the depreciated 2001 and 2020. The compensation payable to a licensee original cost of the three projects with annuallicenses in the event the United States or a new !icensee were aggregated $19,788,000 and the related amortization to take over a project upon expiration of a license is an reserves $1,492,000. Note F-Redemption of Preferred Stock On March 31,1977, a subsidiary redeemed all of its $3,000 was charged to premiums on capital stocks . 9.44% Series Cumulative Preferred Stock, $100 par account while the balance of the redemption premium ' value. An amount equivalent to the safe premium of of $856,000 was charged to retained earnings. Note G -Share Capital of New England Electric System -- -- During 1977,1975 and 1973, respectively, NEES sold and Common Share Purchase Plan and an Employees' 1,250,000,2,500,000 and 1,250,000 additional common Share Ownership Plan NEES also issued and sold , shcres, par value $1 each, and credited paid-in capital 89,186 shares, par value $1 each, and credited paid-in ' with the excess of proceeds over the aggregate par capital with the excess of proceeds over the aggregate value thereof ($28,971,000, $35,550,000 and $24,860,000), par value ($1,944,000). During 1977, pursuant to a new Dividend Reinvestment Note H-Temporary Surcharge Commencing in October 1974 a retail electric subsidiary includes $5,200,000 in 1975 and $1,700,000 in 1974 from was allowed by the Massachusetts Department of Public the surcharge and net income was increased by Utilities to recover fuel expenses not previously recov- $2,700,000 ($.14 per share) and $900,000 ($.05 per ered by means of a ten-month temporary surcharge share), respectively. which terminated in August 1975. Operating revenue Note 1- Commitments The electric subsidiaries
- construction expenditures are and sells the fuel to the subsidiary at the time of burn at estimated to be $143 million in 1978 excluding AFDC. prices reflecting its cost of the fuel. In addition, the At December 31,1977 substantial commitments had subsidiary pays monthly charges to cover the nonaffill-been made related to this construction program. ate's services. The agreement is terminable on three Under a subsidiary's currant arrangements for fuel months notice. Included in fuel, materials and supplies supply, certain of its fuel contracts are assigned to a and in accounts payable is $15,942,000 representing nonaffiliate which purchases fuel under these contracts fuel inventory held for the subsidiary under the and in the open market, holds the fuel in inventory, as agreement.
owner, up to a maximum inventory value of $50,000,000 Agreements have been entered into with other New England utilities, as joint-owners, for the construction of several generating units. All of the generating units are nuclear except Wyman No. 4 which is oil fired. Commitments in these units as of December 31,1977 are as follows: 4
.. t 27 Capacity (MW) Estimated Additional Estimated Total System Amounts Date of System System Expenditures Committed Unit Location Operation Total Portion Cost (a) (b)
(In Mdlions) (In Mdlions) (!n Mdlions) Wyman No. 4 Maine 1978 600 56 $ 17 $ 12 $5 Millstone No. 3 Conn. 1986 1,150 140 241 53 16 Seabrook Unit No.1 N.H. 1982 1,150 114 228 32 49 Seabrook Unit No. 2 N.H. 1984 1,150 114 Pilgrim No. 2 Mass. 1985 1,180 132 172 15 13 NEP Unit No.1 R.I. 1986 1,150 946 2'387 24 - NEP Unit No. 2 R.I. 1988 1,150 946 Montague No.1 Mass. 1988 1,150 150 442 5 - Montague No. 2 Mass. 1990 1,150 150 _
$141 _$83 (a) included in construction work in progress (b) Commitments to manufacturers. contractors and others The NEES subsidiaries,in common with other certain facilities any of which could result in increased utilities, are subject to current and future regulations costs to the utility and its customers. Nevertheless, in relating to safety and environmental protection. This order to provide an adequate supply of energy for the regulatory process may result in the modification of future, and because of the extended time required for operating or planned facilities, and/or relocation of planning and construction of new facilities, utilities must planned facilities to different sites, and/or delay con- make substantial investments in new facilities prior to struction of facilities. and/or require cancellation of the issuance of all the required licenses and permits.
Note J - Pending Rate Proceedings A subsidiary, whose rates now are regulated by the the FERC, result in an estimated refund of about half of Federal Energy Regulatory Commission (FERC), was the amounts collected on a consolidated basis.The permitted in 1977 and 1976 to revise rates subject to pos- subsidiary has filed exceptions to this preliminary deci-sible refund. Consolidated operating revenue includes sion and is awaiting a decision by the full Commission. amounts subject to refund relating to these revisions of The FERC has not issued an opinion on the revenue approximately $35 million and $23 million for 1977 and collected, subject to refund, for the period subsequent 1976, respectively, and corresponding net income was to February 1,1977. increased by $17.5 million and $11.5 million. In early 1978 the FERC issued an order requiring The increase in rates in effect from March 1,1976 minimal refunds of revenue collected by the subsidiary until February 1,1977 resulted in an increase in consoli- under rates in effect in 1974 and 1975. The subsidiary dated revenue of approximately $26 million over this contends that no refunds are necessary and intends to period. On June 30,1977, an Administrative Law Judge seek reconsideration of this order. issued the initial decision of the FERC in this proceed- The subsidiary cannot predict the final outcome of ing based on a return on common equity of 13.5 percent these requested rate proceedings. and making other adjustments that would,if adopted by i Note K-Litigation A subsidiary is one of two joint defendants in a federal in October 1975 by the Ghane Supply Commission antitrust suit filed in 1974 by the Town of Norwood, alleging conversion of fuel c" 3riginally belonging to Massachusetts, seeking treble damages in the amount the plaintiff; notwithstanding that the subsidiary paid of $45 million and attorneys fees. The defendants have the contract price of said oil to its immediate supplier in filed answers to the complaint denying any violations the chain of supply.The subsidiary has filed an answer of the antitrust laws and raising affirmative defenses. denying liability. The parties are engaged in pre-trial The parties are engaged in pre-trial discovery, discovery. The subsidiary is also the defendant in a suit brought
28 Note L- Selected Quarterly Information (See Note J) First Second Third Fourth Ouarter Quarter Quarter Quarter 1977 (Unaudited) (Unaudited) (Unaudited) (Unaudited) Total (In Thousands) Operating Revenue $209,547 $183,454 $192,879 $189,575 $775,455 Operating Income 31,229 23,321 27,255 26,710 108,515 Net income 18,276 9,722 13,552 13,813 55,363 Net income per Average Share .94 .50 .66 .67 2.77 , 1976 Operating Revenue $189.974 $162,392 $168,161 $180,912 $701,439 Operating income 30,573 23,954 24,781 24,802 104.110 Net income 16,976 10,091 11,075 11,090 49,182 Net locome per Average Share .87 .52 .57 .57 2.53 Note M - Replacement Cost Information (Unaudited) in recent years the rate of inflation, price and availability capacity will be recovered through the normal regula-of fuel for generation and environmental requirements tory process. In compliance with reporting require-have resulted in current replacement costs of produc- ments, estimated replacement cost information tive capacity being significantly greater than the his- for the electric subsidiaries will be presented in the torical cost of utility plant being reported in these NEES annual report to the Securities and Exchange financial statements. However, management believes Commission (SEC) on Form 10K to be filed on or about that any higher replacement cost that may be required April 1,1978. to be incurred in the future to replace productive Report of Independent Certified Public Accountants New England Electric System Westborough, Massachusetts We have examined the consolidated balance sheets and As discussed in Note J, a subsidiary was permitted to the consolidated statements of capitalitation of New revise its rates in 1977 and 1976, subject to possible England Electric System and subsidiaries as at refund upon final determination by the FERC. December 31,1977 and 1976 and the related consoli- In our opinion, subject to the effects, if any, on the dated statements of income, retained earnings and 1977 and 1976 financial statements of the ultimate reso-changes in financial position for the five years ended lution of the matter referred to in the preceding para-December 31,1977. Our examinations were made in graph, the aforementioned financial statements (pages accordance with generally accepted auditing stan- 19 to 28) present fairly the consolidated financial post-dards and, accordingly, included such tests of account- tion of New England Electric System and subsidiaries ing records and such other auditing procedures as we at December 31,1977 and 1976 and the consolidated considered necessary in the circumstances. results of their operations and changes in their con-In our report dated January 24,1977, our opinion on solidated financial position for the five years ended the 1975 and 1974 financial statements was qualified as December 31,1977 in conformity with generally being subject to the effects of such refunds, if any, as accepted accounting principles applied on a might have been required had the outcome of certain consistent basis, rate matters been known. As explained in Note J of Notes to Financial Statements, in early 1978 the Federal Energy Regulatory Commi,ssion (FERC) issued an order on these matters, requiring minimal refunds. Accord- / // l ingly, our present opinion on the 1975 and 1974 finan-
- cial statements, as presented herein, is no longer Boston, Massachusetts !
qualified. January 25,1978 Coopers & Lybrand , i l
Shareholders Statistics 29
, New England Electric System Common Shares - New York Stock Exchange 1977 1976 Price Range Dividend Price Range Dividend High Low Paid High Low Paid 1st Quarter $23% $21% $.465 $20% $19% $.445 2nd Quarter 23 % 21 % .465 21 % 19 .465 3rd Quarter 24 % 22 % .485 22 % 20 % .465 4th Quarter 24 % 21 % .485 23 % 20 % .465 Geographical Distribution of Shares-1977 Shares Shareholders Number Percent Number Percent New York 5,036,413 24.3 % 13,302 13.4 %
Massachusetts 4,347,109 21.0 24,370 24.5 Florida 1,527,884 7.3 8,083 8.1 California 1,420,751 6.8 6,837 6.9 New Jersey 971,979 4.7 5,284 5.3 Connecticut 843,542 4.1 5,391 5.4 Rhode Island 653,036 3.1 4,691 4.7 lilinois 630,146 3.0 3,403 3.4 Ohio 467,044 2.3 2,303 2.3 Michigan 460,497 2.2 2,750 2.8 New Hampshire 423,260 2.0 2,791 2.8 Pennsylvania 387,783 1.9 2,083 2.1 Maine 346,260 1.7 1,964 2.0 Texas 285,875 1.4 1,303 1.3 Minnesota 283,422 1.3 599 0.6 Other States and Possessions 2,612,920 12.6 14,095 14.1 Other Countries 54,020 0.3 355 0.3 20,751,941 100.0 % 99,604 100.0 % Classification of Shareholders-1977 Number of Number of Shares Held Shareholders individuals 9,361,971 63,156 Joint Accounts 3.390.059 25,734 Fiduciaries 1,086,521 7,651 Brokers. Security Dealers & Nominees 6,164,729 1,454 Institutions and Others 748,661 1,609 Totals 20,751,941 99.604
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.
- Nuclear Plant, Jointly Owned Nuclear Plant, Jointly Owned -
Advanced Planning or Note Construction Stages 2 Nuclear P' ant Proposed The company has pre-pared a 1977 Statistica! M D'esel or Gas Turbine Plant a Pumped storage Supplement. For a copy, e Headquarters please write to James E.
- Regional Omces Tribble, Vice President-Finance.New England Electric System.
Directors and Officers 31 As of December 31,1977 Directors andrew 8. Bell, Jr. Francis H. Burr
- Robert F. Krause* Guy W. Nichols' Chairman, Partner, Ropes & Gray Chairman President and Chief Executive Rhode Island Urban Project, (attorneys) New England Electric System New England Electric System Providence. Rhode Island Boston, Massachusetts _ __ Westborougn. Massachusetts Westborough. Massachusetts W. Douglas Bell James R. Carter" Edward H. Ladd** Dudley W. Orr*
President and Chief Executive Chairman, Nashua Corporation President Counsel. Orr & Reno, P.A. Officer, State Mutual Life (information technology) Standish. Ayer & Wood. Inc. (attorneys) Assurance Co. of America Nashua, New Hampshire (investment counsel firm) Concord. New Hampshire , Worcester. Massachusetts Boston. Massachusetts Richard B. Dunn John B. Ritchle George F. Bennett* Vice President and Secretary Cosmo E. Mingolla Energy Consultant - Chairman Former President, President. State Street New England Electric System investment Corporation Westborough. Massachusetts Bayer & Mingolla Industries. Inc. Asiatic Petroleum Corporation. Boston Massachusetts (construction) New York, New York R. Leigh FitzGerald Worcester, Massachusetts Mary 1. Bunting Vice Chairman George M. Sage" President Emerita New England Efectric System President Radcliffe College Westborough. Massachusetts Bonanza Bus Lines. Inc. Cambridge, Massachusetts Providence, Rhode Island (*) Denotes members of the Executive Committee (**) Denotes members of the Audit Committee Officers Transfer Agent and Registrar As of December 31,1977 for Common Shares Robert F. Krause Richard B. Dunn The First National Bank of Boston Chairman Vice President and Secretary 100 Federal Street Boston. Massachusetts 02110 l Guy W. Nichole i John F. Kaslow President and Chief Executive Vice President i R. Leigh FitzGerald Paul J. Sullivan Vice Chairman Vice President Donald G. Allen James E. Tribble Vice President Vice President - Finance Joan T. Bok James C. Nesbitt Vice President Treasurer Donald E. Rose Assistant Treasurer I Annual Meeting Notice The annual meeting of New England Electric System The name "New England Electric System" means the , will be held in New England Life Hall,225 Clarendon trustee or trustees for the time being (as trustee or Street, Boston, Massachusetts on Tuesday, April 25, trustees but not personally) under an Agreement and i 1978 at 10:30 a.m. Declaration of Trust dated January 2,1926, as amended, which is hereby referred to, and a copy of which as This report is not to be considered as an offer to amended has been filed with the Secretary of The Com-sell or buy or solicitation of an offer to sell or buy monwealth of Massachusetts. Any agreement, obliga-any security, tion or liability made, entered into or incurred by or on behalf of New England Electric System binds only its trust estate, and no shareholder, director, trustee, offi-cer or agent thereof assumes or.shall be held to any ! liability therefor, i s' i 1
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l%klh BURLINGTON ELECTRIC DEPARTMENT 3 .
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Q j[ Josepn C. McNeil -; Board of Electric Commissioners Chairman ; - -Joseon C. McNeili Chairman - Term expires 1982 M I Joseon E. Coroett .,f* Term excites 1978 ," . g [/ Mark 8. O'Brien .. 4,- I t Term excires 1981 t Jonathan K. Woods ,{I Joseon E. Corbett i Term exoires 1980 i
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Management and Staff , . . e. e;. 9 - eg) - 9 Robert C. Young k k% General Manager Edwin M. Norse Assistant General Manager
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Report For The Electric Department ful supply rignt here in Verrront! And, unlike oil, coal and natural gas, the sources are tenewaole. For the Year Ending June 30,1977 ' The prcoosed Intervale " Energy Park" also would utilize waste steam for the growing of vegetaoles in adjacent greenhouses and to heat a nearby "acuacul-Honorable Mayor and Board of Aldermen ture" fish facility. The wood chip harvesting process City of Burlington for the plant would in no way degenerate forested City Hall areas. In fact, harvesting that kind of waste wood, Burlington, Vermont 05401 which in the past has been unmarketable, would actually promote the growth of healthy, high-quality timber areas. This kind of facility would be the first of its type in the The Burlington Electric Department is headed for, what nation. To make it a reality, we again emphasize that we believe are, some exciting times in the near future. we will need the support of *ur customer / owners to With the help of you, and all our customer / owners, the approve the required bonding ,%r the project. Department will be striving in the months ahead t In keeping with our desire to seek workable, alterna-break new ground in the development of much-needed tive methods of generating power, the Department new sources of power for local generation. lans to convert one of the units in its Moran Generat-It is not enough to simply discuss the energy ing Station to wood chip burning capability. What is ! problems we face. We must take action. We must learned from this experimental project can be applied increase local power generation capability, utilizin9 to the design and construction of the procosed Inter-Vermont energy sources, to ensure the continuance of vale plant. The conversion at the Moran Station will reliable electric service at the lowest possible cost. make the Burlington Electric Department the first That is a formidable task, but the Department is pre- utility in the nation to burn wood chips solely for power pared to face it. We have initiated specific programi generation. Upon installation of the wood burning designed to meet the future needs of Burlington. equipment during the fall of 1977 we exoect to receive With the vital support of its customer / owners in the inquiries from state and federal officials as well as past, the Department has maintained a system members of the local and national press. We believe unparalleled in service and reliability, and rates that our efforts are going to put Burlington on the "energ" are lower than any comparably sized city in New map" as an innovative municipal utility, with a prove England. With that same kind of support in the months track record. - ahead, we can continue to provide the high-quality We continue to pursue with Green Mountain Power electric service the citizens of Burlington have come Corporation the feasibility of constructing a jointly to expect. owned hydroelectric generating station on the We are looking at the feasibility of using waste wood Winooski River. Again, increased local control over chips and solid waste to fire a preposed 50 megawatt generation sources is the key element. Without more _ generating facility in the Intervale. hink of it! A control over our own , power destiny,' too much will - l I generating facility fueled by sources that are in plenti-y .- ...,,p.- ~ . - . ~ . _.-....,.n ..
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1 l l l l be left to chance wnen it ccmes to scurces and cost Rates and Financial l of energy in the future, j With your centinued succort and counsel, we are The Department's net inccme of $1.423.c24.08 for the i confident the critical energy issues we all face can be fiscal year ended June 30,1977, exceeded by a sub- l dealt with effectively. Stantial margin that of any previous period, and folicwed three years of net loss and a year of minimal fr;come. Since the Department is owned by its cus- i tomers, any net income from its coeiations is ear- ! marked either for contributions to the City in-lieu-cf taxes cr for improvements to the system. No rate increases are anticipated for fiscal year 1978. Energy Conservation i The increasec financial licuidity enabled the Depart-ment to reduce short term debt from $1.4 million at thts The Department was pleased to sponsor in ccccera- beginning of tne fiscal period to zero in early May. [ tion with the Vermont Energy Office two workshops for This aided in securing highly favorable interest rates ! the residents of Burlington on energy saving measures on Department bond sales for capital improvements !
-that can be implemented in the home. The programs and voter-acproved joint ownership participation were so well-received by particicants that similar involving the Millstone No. 3 nuclear ocwer facility in r sessions have been scheduled for Fiscal Year 1978. Connecticut and the Pilgrim No. 2 nuclear unit in l Conservation imorevement areas covered included Massachusetts. 4 installation of insulation: Stcrm windows and docrs; The 20-month five percent billing surche.rge, granted I and weather stripping and caulking. Major emphasis by the Public Service Board in 1974 to enable the was placed on the considerable heating cost savings Department to recoup monies " lost" as a result of '
that can be achieved with procer amounts of insulation. sharp increases in fuel costs, ended in Decemcer , The Decartment also concated a heat loss survey 1976. using infrared photograchy. Atacu: 225 customer / To meet the requirements of a proposed 50-megawatt l owners asked to participate in the program, wnicn wood chip and trasn burning generating facility in the involved taking two photos of each hcme and distrib- Intervale, the Department made its first payment of uting them to the homeowners along with a letter $100,000 for the parcel of land that will be needed. I describing how to interpret the photos with respect to The balance of $300,0C0, clus interest, for the 370-acre ! areas of neat loss. parcel will be discursed over the next three years. ! In accition, the Department continued to stress the Oil and natural gas prices increased significantly need for energy conservation imcrovements by offering througncut the fiscal year wnile coal prices declined . in-the-home insulation evaluations, which are per-20 percent from the previous period. fermed free of charge at the request of any of our custcmer/cwners. - 6 f l [ i l
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Because of the built-in " lag" in the purchesed power Over the course of the fiscal year, the Generating and fuel acjustment clause, the relatively hign net Station burned 40 percent coal,38 percent gas, and income posted by the Department in the fiscal year is 22 percent oil for power generation. At the beginning not expected to continue in immediate futute years, of the fiscal year, plant maintenance personnel 3' although it does symbolize recovery to a more sound installed a new boiler feed pumo on the No. 2 boiler. , financial position. the months following, new steel rcof casings were At a time when operating expenses normally increase installed on all three bcilers. Seals and a grate chain by five to seven percent annually, the Department was were put into the No.1 unit and a new forced-draft fan able to cut its operating excenses - other than fuel motor was placed in service. The main oil pumo on
- by two percent in fiscal year 1977. No. 3 turbine was rebuilt under the supervision of a
. factory representative.
The Department was pleased to make its full centn- . bution to the City in-lieu of taxes, including $350.000 in in accordance with Federal Environmental Protection cash contributions to the sinking fund, $147,225.38 in Agency regulations, three cpacity monitors were pur-municipal street lighting Ed services, $95,474.31 in chased and incorporated into the centrol system of the the form of lower municicri rates, and $29,079.55 in plant so that continuous monitoring of stack discharge miscellaneous centributi,ns. For the fiscal year 1978, coloration can be done. the Department has budgeted $400,000 in casn contr!- Modifications were made to the existing overfire air butions for the City sinking fand. system on all three boilers that permited the introduc. The Decartment's payment to the City in-lieu-of taxes tien of additional .arbulence to the furnace section of totaled more than two-and-a-half times the amount in the units. This resulted in cleaner buming of solid taxes paid by the City's largest commercial / industrial fuels, with an increase in ocerating efficiency, taxpayer. The latter portion of the fiscal year was spent in ; planning the conversion of No.1 boiler to wood chip ' burning cacacility. Generation The exciting expenmental project, tne first of its type in the nation. was develeced by Generating Station The Burlington Electric Department's Moran Generat. Superintendent Thomas Carr and his crew. Orders ing Station on the lakefront was en line for 6,413 unit- were placed for equipment at the close of the fiscal hours during the year, producing a total of 51.4 million year. Much of the eculpment was set to be fabricated kilowatt hours for an ocerational load of about 25 per, in the plant. Installation is to be done entirely by cent. Purchases by the Department of less-costly Generating Staticn personnel, thereby reducing cos s power from sucn sources as tne Pcwer Authority of considerably. the State of New York (PASNY) and Vermont Yankee The project is to be completed by October of 1977. It acccunted for the relatively mcderate amount of "en is believed the conversion will demonstrate the feasi-line" time. bility of using a native fuel as a much-needed alter-native energy scurce to increase the flexibility of the plant, as well as produce power at a reasonable cost. - 1.-New lighting was installed at Roosevelt Park. m i 2.-Installation of new powerpole, Peart Street. i 'Y'N .,#- ' 1 3.-Restoration of antmue lighting at City Hall W .,s l Park was comcleted during the fiscal year. 1
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l l l l Power Supply past. For 'he most part, we have ceen at the mercy of "tne othe'r guy" to determine wnat scurces of energy we get and now muen it will cost. New we have a Hydro power from the Power Authority of the State of clear-cut cocortunity to begin changing that. An excit-New York (PASNY) centinued to supply the system ing proscect, indeed! with about one-third of its base ! cad energy needs, at The intervale Energy Park can keep electric rates frem the lowest overall cost. Vermont Yankee Nuclear nereasing as rapidly as they would, were we to con-Power also accounted for abcut one-third of the tinue to have to ely on imccrted oil Canadian natural system's base load requirements, and was second gas and coal frein out-of-state. This "hcicing the line" cnly to PASNY power in terms of lowest overall cost. cn electric rates through construction of the Intervale The remainder of the energy was supplied primarily plant, can be achieved without increasing taxes in from the Department's own intermediate and peaking Burlington, since financing for the project will be pro-generation (the Moran Generating Station and the vided frem the sale of revenue bonds. Furthermore, Burlington Gas Turbine), the Merrimack coal-fired unit the generating facility could mean as much as $3 mil-in New Hampsnare, and several short and intermediate lien annually in contnbuticns by the Decartment to the ' term " mix" purchases. City in lieu of taxes The Department tcck several steps during the fiscal The intervale facility also will give needed stimulus to period in an effort to face, head-on, crucial prcblems the state's economy in the form of new jobs involving involving future sources of power. the harvesting, chipping, and transecrtation of waste ' The firm of Henningson, Durham and Richardson was wecd. The benefits of a project of this nature are commissioned to study the feasibility of constructing, seemingly endless! in the Intervale, a 50-megawatt electric generating The " energy ball" is in our court. We believe it is time : facility fueled by wood and municical refuse. The study to act. was initiated with a view toward relieving solid waste , problems in the Intervale and the utilization of low, in accordance with this philosechy, the Department quality (cull) wood, which is in plentiful supply here in also signed a formal agreement with the Green Moun-Vermont, as a mucn-needed, renewable, alternative tain Power Corporation to continue analysis of a pro-energy source. The harvesting procedure would posed jointly owned hydrcelectric facility on the actually promote the growth of hign-cuality timber )Vincoski River, near the Wincoski Bridge. Engineers areas. The preliminary study is seneduled to be issued a preliminary draf t report which concluced that released in the fall of 1977. the project appeared to be feasible. A final recort is to be released in July 1977. The stucy represents the first step in the process of gaining a degree of !ccal centrol of energy scurces. Legal delays in tne long-awaited second connection to Local contrcl has not been a reality in Vermont in the the Verment Electric Power Ccmoany (VELCO) 115,000-voit transmission system were effectively removed by the end of the fiscal term and the possibility of ccm-4.-Chace Mill section of the Winooski River -
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pleting the tie-in by fall 1977, became accarent. The the KV lines alcng Monroe Streat was comoleted, as connection will mean that the citizens of Burlington was the installat!On of a new 3,000-foot primary feed will no longer have to fear dangercus power interruo- for the new Ethan Allen Woods Apartments off North tions that could have resulted with just the one VELCO Avenue. % connection at the East Avenue substation. The Department also wan involved in the insoection and approval of windmik apparatus for a University of Vermont experimental power generation project. General Services section personnel intreduced new IranSmlSSion and Distribution computerized methods of stock control which allowed for Icwer dcilar investment in inventory and at the Major new services installed during the year included same me hasM wangs d m commcny used Hems. N sysm also mes amax, the Burlington Square South housing project for the reor er pcint signaHng, twnow stadsdes, and elderly at the corner of College and Pine Streets, the managenaWented sunmary repod of transacdens. University of Vermont Agricultural Engineering building par s eM, mgdar dshh WMes sM at the Ice House Restaurant en Battery Street, and the S235,741, compared with the 1975 inventory total of St. Joseph,s Child Care Center renovation project on $251,570. Taking into account annual inflation rates, l oM Aenue. the recuction of inventory investment, in terms of The restora' ion of antique lighting at City Hall Park "real" dollars, over the past two years has been a was completed with the renovation of eight poles and significant step in the continuing effort to upgrade installation of five new ones. The service was upgraded efficiency. to accommodate new mercury vapor lighting. An extensive aerial lighting project at Franklin Scuare The Meter Department tested 1,200 meters during the apartments on North Avenue also was completed. In fiscal term, and continued modemizing older commer-addition, the Department installed high pressure cial and residential installations as well as metering sodium vapor lighting along North Street between new customers. North Avenue and North Wincoski Avenue. The project was part of an on-going effort to revitalize that section of the City. In an effort to reduce vandalism, new lighting was installed on the grounds of all City schools. Upon ecmpletion of the extensive prciect, the Police Department reported a marked decrease in the inci-dences of vandalism. Replacement and revamcing of lines at vaaous points 1.-Intrated photo equipment is used to determme areas of througncut the City continued. The 5 KV underground cuilding neatless. line along Prospect Street between Main and Pearl 2.-Ughter sections o/ photo represent areas,,ot heat less. 3.-To save on coerational costs, 'in-house maintenance is , Streets was replaced during the winter. Rep:acement performed on oeoartment vehicles. - I cf 5 KV lines at Lakewood Estates was continuing at 4.-Meter ceoartment, w//liam A. steccins coerations center,
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r i Personnel Conclusion After more than 34 years of service to the Decartment, We think you can be proud of the acccmplisnments Emil 7. Baccei, General Services Manager, retired made by our dedicated personnel team over the past August 1,1976. Before his appointment as General year. We wisn to express our sincerest thanks to Services Manager in 1970, Mr. Baccei served as Mayor Gordon H. Pacuette, the Board of Aldermen. Department Purchasing Agent. indeed. to all the citizens of Burlington, for their valued Simeon (Bud) M. Palmer, Assistant Purchasing Agent, succort of our efforts to provide high-cuality, reliable electric service at the lowest possible cost. retired Septemoer 1,1976 after 34 years of service. Alfred H. Leceau, Moran Generating Station fireman, retired June 1,1977 with 23 years of service. Respectfully submitted, THE BOARD OF ELECTRIC COMMISSIONERS Joseph C. McNeil, Chairman Joseph E. Corbett Mark 8. O'Brien Jonathan K. Woods Margaret A. Hartigan Robert C. Young, General Manager AVERAGE RESIDENTIAL REVENUE COST CF 500 KWH OF ELECTRICITY ,..a...,, 24' ~~ * '
., ,,c .= t New H[rmoshire (8 23.27) '*
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VERMCNT (4 22.74) /w% , 7
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Mr 20.m - - 2% Q UNITED STATES ($19.26) i %, g% 8 I 8 8 7 8 18.00 Maine ($18.02) 71 %
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s' ,8 8 2 * , e j C; M 8 SU Rt.!NGTcN (sl6.46) 0., cost # " .u< t',e m EXPENSE r.~ figures shown are ComQtied from Type:at Electnc Bills, published yearty by the receral Power Commossoon. 7
o - - - Balance Sheet June 30 l
]j i
Assets 1977 1976 '!l Current Assets, Cash on Hand and In Banks-General S 8,921.65 S 10,770.00 i Cash on Hand and in Banks -Customer Deposits 10.684.00 7.674.00 Accounts and Notes Receivable (Net of Reserve $ 19,605.65 3 18,444.00 : for Uncollectible Accounts of $10.227.38 for 1977 and $10,332.38 for 1976) 720,296.61 781,276.65 i i inventories: , Note 1 ! Fuel S 280,064.93 $ 902,330.53 ; Materials and Supplies 284.633.21 301.191.65 ) 564,698.14 1,203,522.18 j i
~
Prepaid Expenses 78.982.21 6.382.76 Total Current Assets S 1,383,582.61 5 2,009,625.59 Restricted Assets: Note 1 Cash and Investments: i Renewal and Replacement Fund 82,534.80 60,085.f i Electric Revenue Bond Fund Reserve 225,960.00 225,960.0c J Bond Funds - Unexpended 1,050,344.95 612,303.79 Operating Reserve Fund 200.000.00 1,558,839.75 898,349.68 investment in Associated Company Note 2 1,724.208.50 1,724,208.50 .] Utility Plant in Service: Production Plant 8,172,478.03 8,114,676.13 ; l Other Production Plant 2,607,031.69 2,606,776.02 Transmission Plant 1,145,928.55 1,121,381.97 ( Distribution P1 ant 6,788,239.80 6,645,850.49 General P! ant 959,665.49 900,659.30 Electric Plant Helo for Future Use 400.000.00 0-l 20,073,343.56 19,389,343.91 ' i l Less: Accumulated Depreciation Note 1 8.774.594.27 8.253.314.57 + l 11,298,749.29 11,136,029.34 Construction Work in Process 1.911.935.66 1,320.362.64 ; 13,210,684.95 - 12,456,391.98 i l Other Assets: Deferred Charges -Vermont Yankee ;i Nuclear Power Corporation Note 2 235.477.44 275.277.36 Total Assets $18.112.793.25 $17.363.853.11 8 ..
.c - .
1 l l l Liabilities, Reserves and Retained Earnings 1977 1976 Current Liabilities: Notes Payable - Banks 3 $ 1,400,000.00 , Notes Payable - Others Note 5 100,000.00 - Accounts Payable 349,841.73 403,951.81 Aqcrued Interest Payable 110,019.97 113,161.44 Accrued Salaries andWages 9,742.48 49,632.85 Customer Deposits 134,136.00 96.364.00 Total Current Liabilities 703.740.18 2,063,110.10 Other Liabilities: Advance from Municipality - S 9,305,000.00 $ 8,700,000.00 GeneralObligation Bonds Note 4 770.000.00 885,000.00 Revenue Bonds Payacle Note 4 10,075,000.00' 9,585,000.00 Notes Payable - Others Note 5 200,000.00 Total Liabilities 10,978,740.18 11,648,110.10 Amortized Premium on Debt 27.189.26 32,503.28 Retained Earnings - Exhibit B 7.106.863.81 5.683.239.73 Total Liabilities, Reserves and Retained Earnings $18.112,793.25 $17.363.853.11 4 s - The Accornpanyong Notes are anIntegral Part of the FinancialStatements 9 l
Statomont Of Rcvenues, Expensos and Retained Earnings , For the Years ended June 30 N, 1977 1973 Operating Revenues: Sale of Energy: Residential $ 3,473,408.57 $ 3,170,182.36 Commercial and industrial 5.039,456.61 4,433,006.71 Street and Traffic Lighting 147,225.38 138,974.09 Municipal and Other Public Power 565,587.76 532.995.93 Wholesale to Other Electric Utilities Note 3 1.974.799.07 1,222.396.80 Total Sale of Energy 11,200,477.39 9,497,555.89 Rent from Electric Prcperty 46,062.00 32,711.47 Miscellaneous 9.141.59 2,527.95 Net income (Less) en Merchandise Sales 5.824.21 (1.346.85) Total Operating Revenues 11,261,505.19 9,531,448.46 Operating Revenue Deductions: Operating Expenses - Schedule No.1 Depreciation
$ 8,486,522.10 $ 8.091,820.1
\
Note 1 602.253.48 578,352.86 Taxes - Contributions to City in Lieu of 527.962.76 478,985.69 Taxes - Gross Revenue, Social Security 130.850.83 113,170.55 Net Interest Expense Note 6 90.291.94 172.950.22 Total Operating Revenue Deductions 9.837.881.11 9.435.279.46 - Net income 1,423.624.C8 96,169.00 Retained Earnings, July 1, 5,683.239.73 5.587.070.73 Retained Earnings, June 30, - Exhibit A S 7.106.863.81 3 5.683.239.73 i f 10 l
i Statomant of Changos in Financial Position For the Years endedJune 30 1977 1976 Sourceof Funds: Operations: I Net income $1,423,624.08 $ 96,169.00 items not Requiring Current Outlay of Funds: , Depreciation 610,158.68 589.571.38 i Amortization and Deferred Charges 39,799.92 39.799.92 Total Operations 2,073,582.68 725,540.30 i Contributions in Aid of Construction 48,204,49 28,007.21 Transfers from Bond Funds 1,059,842.64 , Bondsissued 1,250,000.C0 300,000.00 l Long-Term Debtincurred 200.000.00 4 Total 3.571.787.17 2.113.390.15 ; Appilcation of Funds: Additions to Utility Plant 1,412,656.14 1,385,981,10 Retirementof Bonds 760.000.00 725,000.00 ; Amortization of Premiums en Debt 5.314.02 6,414.03 : Transferred to Restricted Funds - Operating Reserve 200,000.00 Transferred to Renewal and Replacement Fund 22,448.91 30,909.99 > Transferred to Bond Funos 438.041.16 , Total 2.838.460.23 2.148.305.12
- i increase (Decrease) in Working Capital $ 733.326.94 $ (34.914.97) l Analysis of Changes in Working Capital Current Assets:
Cash on Hand and in Banks $ 1,161.65 $ (13,673.04) Accounts and Notes Receivable (60,980.04) 99,714.98 Inventories (638.824.04) (20,976.66) Prepaid Expenses 72.599.45 4.614.34 (626.042.98) 69.679.62 ; Net increase (Decrease)in Current Assets Current Liabiliti9s: , Notes Payable - Banks 1,400,000.00 (50,000.00) Notes Payable - Others (100,000.00) -0 . Accounts Payable 54,110.08 (5 485.38) ; Accrued Interest Payable 3,141.47 3,649.46 - Accrued Salaries and Wages 39.890.37 (37.981.67) (37,772.00) (19,280.00) i Customer Deccsits Lease Payacle 4.503.00 , Net (Increase) Decrease in Current Liabilities 1.359.369.92 (104.594.59) s increase (Decrease) in Working Capital 733,326.94 (34,914.97) Working Capital, July 1, (53,484.51) (18.569.54) Working Capital, June 30, S 679.842.43 $ (53.484.51) The Accomoanying Notes are an Integral Part of the Financial Statements 11 r
I Stat:m:nt of Operating Expensas j For the Years endedJune 30 , u 1977 1976 Operation Maintenance Total Operation Maintenance Total Production Expenses: Moran Generating Station: Supervision and En9tneering $ 20,515.85 $ 16,836.98 5 37,352.83 $ 19.308.32 $ 16,193.25 $ 35,501.57 fuel 1,383,288.94 1,383.288.94 841.518.41 841,518.41 Stearn Expenses 118,363.00 118,363.00 146,736.24 146,736.24 Stearn Transferred (Credit) (12,098.05) (12.098.05) (7,083.75) (7,083.75) Electric Plant Expenses 117.244.47 16,348.13 133,592.60 124,647.30 171,400.54 296,047.84 Miscellaneous Expenses 37,616.78 281.99 37,898.77 36,357.91 637.99 36,995.90 Rents 5.00 5 00 10.00 10.00 Structures 8,389.64 8,389.64 2,840.23 2.840.23 Boiler Plant 127,083.18 127.083.18 103.576.59 103.576.59
$1.644,935 99 $ 168.939.92 $1,161,494.43 $ 294.648.60 Total Moran Generating Station Expenses $1.833.875.91 $1,456.143.03 Gas Turbine Unit:
Supervision and En9 neering $ 2,049.64 $ 3,736.00 5,786.54 $ 2,391.47 $ 5.233.65 $ 7,625.12 Fuel 13,872.31 13,872.31 27.049.56 27,049.56 Generation Expenses 15,209.81 ' 9.051.57 24,261.38 18,048.27 55.965.47 74,013.74 Miscellaneous Expenses 8,473.36 8.473.36 1,801.80 1.801.80 Rents 7,771.58 7,771.58 13.071.58 13,071.58 Structures 3,131.45 3,131.45 417.47 417.47 5 47.376.70 $ 15.919.92 $ 62,362.68 $ 61.616.59 Total Gas Trubine Unit Expenses $ 63,296.62 5 123.979.27 Purchased Power 5.184.288.72 5.181.350.00 System Controf and Load Dispatchin9 35,128.76 32.648.68 Total Production Expenses $7,116,590.01 $6,794,120.98 Transinission Expenses: Supervision and Engineerin9 $ 611.46 $ 611.46 $ 9,167.87 $ 9,167.87 Station Expense 4,368.97 $ 2,075.78 0,444.75 4,027.31 $ 29.91 4,057.22 Overhead and Underground Lines 315.64 315.64 1,301.89 1,301.89 Rents 5.048.15 5.048.15 5.757.25 5,757.25
$ 10,028.58 $ 2,391.42 $ 18.952.43 $ 1,331.80
' $ ,.84.23 Tc.at Transmission Expense: i
$ 12.420 00 '
1977 1976 _ Operation Maintenance Total Operation Maintenance Total Distribution Expenses: Supervision and En9i neerin9 $ 48,451,95 $ 24,165.36 $ 72,617.31 5 33,644.81 $ 21,551.46 5 55,196.27 Station Expense 1,353.43 1,353.43 414.39 414.39 Overhead Line Expense 10,234.27 89,601.70 99,835.97 17,218.40 85,945.32 103,163.72 765.32 67,076.10 67,841.42 4,35's.03 66,156.06 70,509.99 Underground Line Expense Street Ll9ht Expense 4,307.68 9.178.13 13,485.81 , 2,821.90 10,500.86 13,421.76 60,602.58 3,236.79 63,839.37 62,629.99 3,499.11 66,129.10 Meter Expense Customer Installalion Expense 58,846.99 58,846.99 50,760.87 50,760.87 78,439.24 78,439.24 61,858.43 2.823.58 64.682.01 Miscellaneous Expense 1,101.25 1,101.25 1,533.50 1,533.50 Hents Line Transformer Expense 19.398.74 19,398.74 20,407.38 20,407.38 24,351.15 24,351.15 19,753.03 19,753 03 Station Equipmeni Expense 957.34 957.34 1,098.46 1,098.46 Structures
$ 264.102.71 $ 237,965.31 $ 235,236.22 $ 231,825.26 Total Distribution Expenses $ 502,068.02 $ 467,061.48 Customer Account Expenses: 7,575.15 7,953.06 Supervision 48,385.75 54,091.02 Meter Readin9 Expense 174,971.18 Customer Record and Collection Expense 171,430.26 17,921.89 15,704.30 Uncollected Accounts TotalCustomer Account Expense $ 251,396.23 $ 246,636.38 Sales Expenses:
1,189 96 713.08 Damonstration and Selling Expenses 2.77 Advertising Total Sales Expenses $ 1.189.96 5 715.85 Administrative and General Expenses: 144,519.37 133,212.07 Salaries 52,623.06 50,190.26 Ollice Supplies and Expense Outside Services Employed 45,185.07 39,740.22 51,041.90 47,069.20 Proportyinsurance 32,576.74 26,976.23 injuries and Dama9es Employees Pensions and Benefits Note 7 220.440.04 210,398.49 Miscellaneous General Expenses 30,360.58 25,140.43 19,679.97 23,156.62 Maintenance of General Plant 6,470.25 7,117.70 Load Study Total Administrative and General Expenses $ 602,857.88 $ 563,001.22 Total Operating Expenses - Exhibli B $8,486,522.10 $8,091,820.14 0
i Notes to Financial Statemsnts i June 30,1977and 1976 1 T i Note 1 Significant Accounting Policies i The Burlington Electric Light Department, a municipaMwned utility, was organized in 1905 to provide retail electric pcwer to the residents of the City of Burlington, Vermont. The utility maintains its accounting records on the accrual basis, in the manner prescribed by the Federal Power Commission in all aspects except for depreciation. Depreciation is omputed 4 using the straight-line method based on reasonable estimates of useful and economic lives of the property. Inventories Inventories are stated at cost, computed under the weighted average method. Investments Allinvestments are stated at cost for balance sheet presentation.The market value of the restricted cash and investments as of June 30,1977 was approximately $1,570,530.75. These assets have been restricted per provisions of the revenue bond and other bond issues. , Depreciation Depreciation expense is not computed in the manner as prescribed by the Federal Power Commission, but rather based on generally accepted accounting policy which has been consistently used for prior years. No depreciation is taken on current year additions; however, included in depreciation costs are amounts for obsolescence where items are retired during the year and the salvage value received is less than book value. The remaining value is written off as obsolete. No i depreciation is taken during the current year when an asset is fully depreciated. Depreciation as computed in the manner prescribed by the Federal Power Con. mission would be $40,789.82 and $29,847.23 for 1977 and 1976, respectively, greater than the amount deducted as an expense on the Statement of Revenue and Expenses for 1977 and 1976. Note 2 Deferred Charges - Vermont Yankee Nuclear Fower Corporation in 1973, the Federal Power Commission and the Vermont Public Service Board authorized and directed all utilities , purchase power from Vermont Yankee to defer over a ceriod ot ten years, certain costs which occurred during shutdown periods after commercial operations had begun. These costs have been excluded from purchase power costs. These costs enter materially into the financial position of the department. Therefore, a disclosure is necessary to show what the actual income for the year would be withcut this entry. 1977 1976 Net income Per Exhibit B $1,423.624.08 $ 96,169.00'- Add: Amortization en Deferred Cnanges 39.799.92 39.799.92 Net income for the Year $ 135.968.92
$1.463.424]
Note 3 Leases The Electnc Department has entered into several agreements to sell a portion of its gas turbine generation. The plant is rated at 28.0 megawatts. A summary of leases is as follows: Perceritage of Total utiHty Period outout Scid Citizens Utilities. Inc. 5/1/77-10/31/77 10.71 % Green Mountain Power Corporation 11/1/76-10/31/77 27.86 % Lyndonville Electnc Department 5/1/77-10/31/77 13.93 % Central Verment Public Service Corporation 5/1/77-10/31/77 25.00 % Central Vermont Public Service Corporation 11/1/78-10/31/79 53.70 % Central Verment Public Service Corporation 11/1/79-10/31/80 46.40 " Central Vermont Public Service Corporation 11/1/80- 4/31/81 17.86 y The lease arrangements are designed to recover the fixed costs of the gas turbine only. 14-
l Note 4 Bonds Payable An analysis of bonds payable is as follows: Principal Payment oate of Balance Interest oue Final 6/30/77 Rate 1976 77 Installment Bond issue For: General Obligations $ 785,000.00 2% $185,000.00 2/1/01 Vermont Yankee Stock 1,665,000.00 4.5 % 45,000.00 9/1/98 Gas Turbine 1,750,000.00 6.15 % 125,000.00 5/1/86 Gas Conversion and Anti-Pollution 795,000.00 5.1 % 55,000.00 1/1/91 CapitalImprovements #1 150,000.00 4.5 % 25,000.00 6/1/83 Capitallmprovements #2 . 200,000.00 6.4 % 25,000.00 8/1/84 Capitallmprovements #3 200,000.00 5.875 % 25,000.00 5/1/85 Steam Plant improvements 320,000.00 6.4 % 40,000.00 8/1/84 Pollution Control #1 80,000.00 6.4 % 10,000.00 8/1/84 r Nuclear Units 1,840,000.00 6.9 % 80,000.00 6/1/2000 Capitalimprovements #4 225.000.00 5.7 % 25,000.00 10/1/85 Pollution Control #2 45,000.00 5.7 % 5,000.00 10/1/85 Nuclear Units #2 1,000,000.00 5.25 % 11/1/2002 CapitalImprovements #5 250.000.00 4.4 % 25.000.00 11/1/87 Total General Obligation Bor's Payable 9,305,000.00 670,000.00 Electric Revenue Bonds 770.000.00 3.2 % 115.000.00 6/1/83 Total Bonds Payable - Exhib/t A $10,075.000.00 $785.000.00 Note 5 Notes Payable - Others During 1977, the department entered into an agreement to purchase approximately 187 acres of land for $400,000.00 to be held for future use. The agreement calls for $100,000.00 down-payment and $100,000.00 to be paid each June until 1980. The note is secured by the land and the interest rate is 5%. Note 6 Interest Expense - The utility maintains the policy of capitalizing net interest when bond funds are used for plant improvements. Interest ' expense consists of the following items: , 1977 1976 Interest en Revenue Bonds $28,013.32 5 31,693.34 Interest on General Cbligation Bonds 453,550.66 476,050.81 Interest on Short-Term Notes 29,836.05 71,443.74 Interest on Customer Deposits 6,169.54 4.771.80 , Total Interest Expense 517,569.57 583.959.69 Less: Interest Earned on Investments 311,285.05 323.145.52 Net Interest Expense Capitalized 115.992.58 87.863.95 427.277.63 411.009.47 Net interest Expense - Exhibit B $ 90.291.94 5172.950.22 Note 7 Pension Plan
' The utility, in conjunction with the City of Burlington, Vermont, has a non-contributory pension plan covering substantiaily all cf its empicyees. The total pensicn plan expense for the year 1977 was $111,779.99 and $105,006.55 for me year 1976. - The utility's policy is to fund the normal cost of the pfan plus an amount required to amortize the unfunced past service costs over a period of 20 years commencing July 1,1973.
15
Public Accountants Report s s e I , s ,
* ' To the Commissioners and Su;,erintendent of the
. Electric Light Department l.' Cityof Burlington, Vermont f
We have examined the balance sheets cf the City of Burlington, Vermont E!ectric Ught Department as of June 30, 1977 and 1976 and the related statemer.t of revenue, expenses and retained earnings for the years then ended. f , Our examinations were made in accordarce w th generally accepted auditing standards, and accordingly included such tests of the accounting records altd such other auditing procedures as we considered necessary in the CircumstanCss. --__ -- - -- Under the authorization and direction of the Federal Power Commission and Vermont Public Service Board, certain
! (
costs in fiscat< year 1974 were deferred whien are explained in detait in the notes to financial statements. We believe this is a departure from generally accepted accounting principles. If such ccsts were not deferred. [' l retaired ezmings at June 30,1977 sand 1976 would be recuced by approximately $235,477.44 and $275.277.36, l respectively, reoresenting the unamortized deferred costs.
- n our ocinioS, except for the deferred costs as desenbed in the preceding paragraon, the accompanying balance sreets and statervent of revenue, expenses and retained earnings preserat fairly the financial position of the C;ty of Partington, Vermont Electnc Ught Department at June 30,1977 and 1976 and the results of its operations for the
[ years then enced, in conformity with generally accepted accounting principles aoplied en a consistent basis. l F[FcJdRGS & CCMPANY B6tlington, Vermont i s - Augu st 19,1977 e i e e t 1
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. e Highlights /1977 Dectric Requirements (KWH) 95 million System Peak Demand iKW) 26,500 Dectric Operating Revenue Dectric Operating Expenses 54.4 million ,( ,
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Dectric Operating Margin $127,353 - w Non-operating income /c,,,,,,, 5148,394 N F R A N K l Patronage Capital '8
& Margins S275,747
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Equity / Percent of Total Assets 15". "" *
% ~.. / u, Members Err.ployees 8,600 60
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c-o,,,, System Load Factor Annual 41". # Degree Days 1977 8638 \/ b j D f N M/ Degree Days 1976 ~~* 9187 # [_ sl
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m 2.23 DT5".*M 9 h . s 'e. I N 1 i Board of Trustees i i
./[i Sumner F. Farr, Richmond 1979 (First Elected 1971)
District I- Richmond, Hinesburg, Huntington Starksboro
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- Arnold C. Centabar, Berkshut 1978 rFirst Dected 19 4) f' District 11 - Franklin, Berkshire, Sheldon iYO H.
Clifford Snider. Richford 1o81 (First Elected 1977) i _l ' District 111 - Eno= burg, Montgomery. Richlord, Westfield (Montgomery Road) Robert A. karr. North Troy 1980 (First Elected 1959)
* * " " "*"* District IV - Jay, Westfield. Troy, Newport. Lowell, trasburg. Coventry, Brownington
/ -- c.~. \ Benoit U. Blais. Derby Line 1979 (Arpoir.
District V - Derby
~ 'Ilected 1971) I
* * * " ' " J. Douglas Webb, Fairfax 1979 (First Elected 1952)
Coirain. Leyden and Bernardston District VI - Swanton St. Albans, Fairfield. Bakersfield. Fletcher. Fairfax Georgia , t Marshall Washer. Johnson 1980 (First Elected 1964) i District Vil - Belvidere. Waterville. Johnson. Morristown, Stowe 1 ! George Wright. Eden 1980 IFirst Elected I900) District Vill - Eden. Hyde Park, Craftsbury, Albany, Glover Theodore J. Stokes, fericho 1981 (First Elected 1977) I
, District IX - Milton, Westford, Essex, Jericho. Bolton i
*Kenneth Hoeppner, Underhill 1978 (First Elected 1974) '
District X - Cambridge. Underhill Henry Pillsbury, Williston 1981 (First Elected 1977) : District XI) - Wi!!iston. Shelburne. St. George
- Laura L.D. Howe, Jamaica 1978 (Farst Dected 1970s Comp Lie is pubhshed each month by District XII - Andover. Windham. Jamaica. Townshend. Wardsboro i P" "
b . to n erm Clyde W.. Jones. East Dover 1980 (First Elected 1963) Disu cs Xill - Dover. Newfant
' Address ingwnes about this Annual Larry W. Cay, Marlboro 1970 IFirst Elected 1975)
Report to William J. Ga!!agher. Con- District XIV - Wilmington, Marlboro. Readsboro Whitingham i troller. School St.. Johnson. Vermont om or phone 802435-233L J Ceorge Butler. Halifax 1981 (First Elected 1977) District XV - Haldax. Guilford. Vernon in Vermont, and Colrain. Leyden. Editor of this Annual Report is and Bernardston in Massachusetts Nathaniel P. Worman of Worman 3,,,,,,,, *Four-year term as trustee expires 1978. Nommations will be made at district meetings in June. The July issue of Co-op Life will carry names of nominees. The annual meeting will be held Pnnnns and Graphic Consultanon: Saturday. August 19 at Dibden Auditorium, Johnson State College. l Producuan Team. j Esm Pubiishing Company Date opposite each name is the year term expires.
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km Sumner F. Farr Arnold C. Centabar Clifford Snider Robert A. Starr j RICHMOND BERKSHIRE RICHFORD NORTH TROY ;
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. K Laura L.D Howe Secretary Walter N Cook Cl>de W. lones Larry W. Gay ). L. :rge Butler EAST DOVER N1ARLBORO HAllFAX Esecutive Mana.:er l
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Who We Are rep id to the government on previous loans by the In 1938, the year this Co-op was founded, maps of c peratives. But where did that money c ne from in electric service showed black lines thick in the city the first place? and thin in the country until they vanished altogether. .Put another way, how could people m, Vermont Somewhere out there a kerosene lamp burned, the w th so little cash start an electric system all their small boy home from school turned the handle of the ""! Since n body with good sense was about to in-corn-grinder and shucked his lessons while his mothtr vest m such a " foolhardy project", the people using _ heated irons on the woodstove and grew frustrated in the service would have to do it themselves with its heat. A passable wage was fifty cents a day, taxes capital they already possessed in a way they were ground out of farms worked sunup to sundown understood --- in pennies and n:ckles. Those little bits and af ter sundown the land went dark. f money wouid be put to work through an idea call-ed patronage capital. Here's how it worked then and Coffee For a Quarter here's how it works now. Loc.jng back, that life looks good; there was bread . . at nine cents a loaf, coffee at 25 cents a pound and Equity is Ownersm.p laughter. Stories made light of hardship: pennies were Rates paid by each patron for electricity must be pinched - per capita income was $489 compared to en urh t run the Cooperative. In addition, there 53,381 today. Even so, in the houses of the well-to-do must be enough left over so that each patron buys - gasoline-driven generators putt-putted away, charging a little bit at a time - his share of the Cooperative. batteries for radios and lighting bulbs a sickly orange. Eventually, when he owns enough of the system City-type electricity from central stations would make u gether with his fellow members) he will begin get-life better many said. It would be for everybody. But ting back the capital he has contributed The return used to houses block on block, city-based power com- he gets on his mvestment is extraordinarily good ser-panies shied from a countryside where the next house vice in rural areas. h1oreover, the capital he invests is couldn't be seen by its neighbor. A country electric created by him as he pays for his electricity and system just wouldn't pay. nly by using and paying for the electricity can he in-vest in the cooperative in the first place. Co-on and Derclopment Two ideas - p :ronage capital and cooperation - But it did. And it produced more than electricity: it made it possible to build a local business a little bit at produced wealth for rural America. Here's what hap- a time. This was how people who couldn't afford a pened. new car, could buy a new technology which eventual-For example, take the last ten year, at this Co-op. ly would help make a new car possible. 4 hiembers have contributed over $30 million dollars to the local, state and national economy. Last year there Hist ry was a payroll of over 5000,000 paid entirely to peo- The Co-op's first office was in Eden h! ills in 1938 ple who live in the country. Another $105,000 went nd first lines were built in Eden, Johnson, Lowell, to country towns, in taxes. Over a million dollars in Irasburg, Westfield, and Troy, Founded in 1938, the one year to the most underdeveloped parts of Ver- Co-op was supplying electricity to 155 members by mont. the end of 1939. Today it serves 8,500 patrons or a hieanwhile, during these same ten years,10 billion p pulation of approximately 34,000 in 61 Vermont kilowatt hours of electricity flowed into homes and and three hiassachusetts towns. shops, increasing productivity, creating more wealth, Co-op and Community shortening work hours, and giving new meaning to Co-op employees have a disticisheci iecord of ser-l life. Where there had been nothing, there was much. j Howi vice to their communities, serving on library boards, as selectmen, volunteer firemen, chairman of Lamoille County Field Days, chairman of the Vermont College l Popular-But Half True Board, bank and hospital boards. The popular answer is the Federal government I through the Rural Electrification Administration. Non-Profit That, however, is only a small part of the answer. Like all other electric cooperatives, Vermont Electric Even today the role of the REA is misunderstood: no Cooperative has no income to tax since it is non-appiopriation, for example, is needed from Congress profit, provides services at cost and, when conditions for REA loans - that money comes from a revolving permit, turns its equity capital back to members who fund, consisting largely of principal and interest supplied it in the first place. The Co-op, however,
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President's Message Cooperation. Tearnwork Service 4 / % g& . Last year's annual report was dedicated to our m' 2;. employees. This year we take a closer look at them and their departments, both to tell you who they are q g j and to tell yo how your Cooperative functions. V < Teamwork has been the key word. -- Once again the ailling department deserves your .{
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4. prair.. Keeping accounts current and what is owed
- i, the Cooperative as low as possible is no easy task.
The team in billing should be proud of the fact that s , once again they've accomplished their task. * ~ WRMONT r Engineering was busy during 1977. In addition to its in ' .o e ELECTRIC major tasks of p!otting power needs, voltage levels, and future construction, the department provided all k4g ( the information, planning, and engineering for 416 - O P* new connections to Co-op lines. This is much more ' than sitting at drawing boards. It means not only meetings with the new members themselves, but with Communication: Key to cooperation and teamwork. ouilders, electricians, engmeers from other utilities, Foreman Dick simays, right, talks to crew in Franklin. selectmen and attornies. Foreman Kevin Kidney at mike in Halifax. The Niember Services Dept. in 1977 showed once again its value to the Cooperative. With two-thirds of Since most people will be mentioned further on in its payroll devoted to the primary function of the Co- this report, I've avoided singling out any one op, supplying electricity-and the other one third to employee. But when it comes to accountic.g and Lois t the sale and service of Hotpoint appliances Beard I can't help pausing a mome.it to thank her for
- employees must be skilled not only in their jobs her long years of service and tM special dignity and but in human relations. I'm also happy to report charm she lends to our accounung team.
another successful year for the appliance division. It is 1977 was also a special year for our dispatchers - entirely self-supporting, (including the cost cf advertis- the people you talk with when the lights go out and ing), and in addition pays one third of the depart- you need help. After many pars at the job, Clayton ,, ment's labor costs from the sale of appliances. Russell has left the job to veran Niary Nye and a O If you have watched our linemen at work, as I new employee. Clayton, of course, remains with the have, you would be proud. Teamwork is a must. Niember Services Dept. Trained in the skills of their job, they work together As you read through the report, other departments quietly, without fuss or feathers. Like good linemen and personnel will greet you. In each, throughout the everywhere, they work deliberately, planning each year, I've found a growing spirit of cooperation and step in order to avoid the wrong one. In 1977, as in teamwork which makes those words the proper theme other years. crews took part in regular safety classes. for this year's report. Athough inflation hits the whole Co-op with increased Finally, I must say so long to Henry Parker who costs. the line department is feeling the bite of yet served the Cooperative long and well, and to Ntidge i another cost-the number of acres once clean farm tubot in Customer Accounts who did such a fine job land now growing up in trees. This means more right- for us. oi-way cutting. Thank you one and all. ; i pays all local property taxes. as well as all other local cation Administration of the United States of i
. axes, amounting to $278,000 a year. America. Vermont Electric Cooperative, Inc., is incor- ;
l 1 The Cooperative's accounting system conforms to porated under the laws of Vermont, and is run in ac- ! that which has been designated by the Federal cordance with bylaws as amended. Bylaws were i Energy / Power Regulatory Commission in reprinted with all amendments up to and includir g i Washington. D.C., and adopted by the Vermont 1977. ; Public Service Board as well as the Rural Electrifi-
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I I I I f f I ( l l 26,600 KW l KTLOWATT DEM AND 20,000 KW ' 1970,1976 a d 1977 C MPARED ' l . , . E I E 10,000 KW J14 k E Ols L d W , L Ds E il
+
5,000 KW , O KW JAN l FEB l MAR l APRIL l MAY l JUNE l JULY l AUG l SEPT l l NOV l DEC i Changes in kilowatt demand are shown in this month-by-month graph for 1976 and 1977. The year 1970 includes Halifas and Derby Line. Peaks for the three years are 19,579 in January, 1970; 25,751 in February,1976, and 26,542 in January 1977. 173 nullion KhN Power Supply Department , i ,
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-'-I Projected 1978.
7 4 Walter N. Cook William J. Callagher O. John Bohn g E _ Power Supply Department " * ' ~ " * ! In 1975 Vermont Electric Cooperative became a total cooperative utility, able to generate, transmit and distribute to its members its own power. This was done by the creation of our Power Supply Depart. 12 million ment consisting of two department heads-Chief Engineer O. John Bohn and Controller William J. 11 million N hEQUIEEMENTS Gallagher-and Executive Manager Walter N. Cook. 10 million N; uYMONTIl N'7 6 As graphs on this page show, we need the most 9 million power in the winter - almost three times as much as ! we need in the summer. All our power planning is 8 million l built around this salient fact. And thus our major concern is to use the kilowatts we bu, the most eff . 7 million . 3. ciently. That depends on members avoiding use of ap-pliances during peak hours. But it also depends on 6 million S. ' i::giii. , . . i ii.i your Power Supply Department which must purchase 5 million l:j! lq.
- jlll the best mix of base, intermediate and peaking power ' d;!sil! :isi!! iii.!:f possible to meet the unique power requirements of 4 milh.on ; ,
this rural system and still provide its members the 3 million #--- " Iowest cost and most reliable electric energy available. i: .db -- T il!$i; ji[.:. .ji i;!!!:i in 1077 we completed contracts with six nuclear 2 milh,on -- jfig plants in New England, slated to come on line in the .. ? ds jgg VIE 1980's. They are Millstone 3, Charlestown Units 1 and 1 million ; 2, Pilgrim 2 and Seabrook No. I and 2. A;j xg-;
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Each will supply 2.3 megawatts of baseload power, the only source of that power available in our market- J F M A M J J A S O N place. By 1987 our investment in g'eneration will in. Co-op members required the most number of kilowatt hours ~ l creas'e to about Sie million for a total projected plant during January (12 million) and February (12.4 millior.l. investment of distribution plus generation of approx. L w m nth was July when need dipped to 5.5 million imately C42 million. kilowatt huurs. iGraph shows billing months.) i
1 l l l l l Manager's Report Service Hydro Generation As you read the pages of your Annual Report you The Cooperative is continuing its engineering will find our theme this year is SERVICE and the per- feasibility studies on several hydro generation sites sonnel required to provide that Service to you the which we hope will prove to be economically com-owners. The below-Organizational Chart shows struc- petitive when the rapidly rising cost of oit is taken in-tually how we delegate authority, responsibility and to consideration. ultimate accountability in our four major departments of service. First, the Finance Department CoalGeneration under Controller Bill Gallagher: second Niember Ser. In July of this year, we received an Offer" for joint vices under Phil Locke: third, Operations. ownership in the Sears island Coal Generating Plant whose lead owner is Central N1aine Power Company. N1aintenance and Construction under Superintendent A careful engineering economic study was made and Bob Lamb: and fourth Engineering, under John Bohn. Each of these Department Heads with your Executive t the great disappiontment of both the Trustees and N1anagement, the costs per KWH proved,to be ex-N!anager in charge makes up the top management re. cessive when compared with the cost or nuclear power quired to operate the Cooperative and maintain a high standard and reliability of service. Of equal im. projected into the same time frame. So the joint ownership offer was not accepted. portance (and some feel of greater importance!) is the balance of the Staff each of whom are under the Construction Delays direction of their Department Head. Ihey are, of -----Delaysin construction of the various plants course, absolutely essential in performing all of the whether nuclear, hydro, coal, or wood add very ap-services required for the total operation of the preciably to the final cost and with each succeeding Cooperative. All of your employees together make uP delay in construction it becomes more and more dif-a team of dedicated, hardworking highly specialized ficult to accurately and realistically project costs into and intelligent personnel necessary to provide you, the future. the owners, electric service. Woodburning Generation Power SuppIY . Your Board of Trustees and Nianagement are anx-In last year s Annual Report we discussed our plans iously awaiting the detailed engineering and feasibility for jomt-ownership in various generating plants re-report now in process by the City of Burlington Light quired to meet your future power supply demands. It Department on their 50 N1W woodfired generating is not well understood that we must plan eight to
.g.g . Conceptional Study" shows a fairly high twelve years in the future to meet your projected e cost per KWH.
needs at that time because it takes that long to build a major size generating plant. Nuclear Corner Nuclear Generation it seems as though for the near future we are being Last year I advised you that the Cooperative was economically baclJed into a nuclear corner at least un-committed to purchasing 0.2% (two tenths of one til solar or some other alternate sources are further percent) or 2.3 N1W in each of six different nuclear developed and become economically competitive. I units. Because of many legal and technical problems, have stated for the last three or four years in your the final documer.ts have still not been transferred on Annual Repm t, the nuclear storage problem must be two of the six units. Hopefully, this will be completed safely solved. Let's get on with it! in the near future. We are presently in the process of trying to transfer ownership on another 12 N1Ws scheduled for operation in the late 1980's. 7 A. -
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i j . = l . Member Services Department Team Member Services Manager Report i We are proud of our record of service and of our ! t
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h_ g :- JD Costs keep going up - something we experience in .s
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* " i ,-y J We have established a reputation for quick, courteous, and efficient service throughout our rural j qi % -
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1 and would be impossible if it were not for our excel-t * (g.. A- -- - lent radio communication and the rural experience of i .-- our repairmen, both of which make for efficiency.
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VE N ~ Philip Locke, Manager EMC tarry Perry Member services Dept. . . .
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l [ L $N. - d i i g f' ;/; q w' y s m t ;.g Chief Engineer O. John Bob Chief Engineer's Report j 3 The Engineering Department is one of four depart-
! ments of Vermont Electric Cooperative.
I Smallest in the number of people employed, its
, t. .
responsibilities are numerous. 2 ' Connection of New A1 embers: ; d t Engineering provides consultation for new members ; _: O % so that their connections for service meet all the Cooperative's standards. the Rules and Regulations of i i F the Vermont Public Service Board. the National Elec- I tric Code, and the National Safety Code. The needs
- and requirements of the new member must also be f
.'l met to his satisfactions, not an easy task. ,
- I
,1 Improvement of Members' Facilities: j
, s ,. As many members add new appliances, tools and L ,,*. eh . .
' e. _ convenience items, their electrical system becomes ,
' . overloaded. The Engineering Department provides ad- L v.
47-[M ,.y', , % vice for the changes and prepares the necessary record changes and work orders. i
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- , .y fil Momtoring System Performanc. .
7 ( M 4 To provide reliable service, the Engineering Depart-( *
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% ment constantly analyzes system records, monthly high-low voltmeter readings. service outages and their 4
- causes, and changes in the averace usage of electrical 6
g~ energy by the Cooperative's members. Power Supply; i Wholesale purchased power is by far the biggest eu A pense to the Cooperative and one of the most basic 9 ;l
'c-needs of the Cooperative. Although the days of cheap i
. energy in any form are gone forever. the Engineering !
7a; , Department provides technical assistance, analysis and l recommendations to the Power Supply Department in i order for them to determme the cheapest and most l reliable power sources for the present and future l 4 needs. j i, ,. Summary: > f - , In summary. the Engineering Department provides l
'A==. #' s the technical expertise to the CJ.eperative Manage- l s s
.T 7
ment Team in order to assure each member that their ! j Cooperz.tive dollars are spent wi ely and that they can continue to expect the cheapest and most reliable elec-l t k tric energy available. I
@ y Upper right, Project Engineer Peter Rodin and Recep- ( % - W d ) . s., 'j tionist Clerk Dorice Allaire, Engineer Bill Tarbos, middle and !
g g, bt,sio m, Engineer Larry Fortin, New England Telephone !
, 4 y{ ;;' [rp'N Engineer Charles Hines and Member Robert Kuck confer !
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j j about Mr. Kuck's plans for a subdivision on Leahy Road in ; _ _ . ... r /A Jericho. Mr. Hines is a Co-op member from Hinesburg. l l
- _2
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= _
y N L!ne Supt. Robert E. Lamb and Asst. Line Supt. Richard E. Parker and Co-op line trucks.
~~ "
The Line Superintendent's Report / ,
,a Mamtenance, Operation, and Construction '
..Q,j.
, It's a sign of the times that almost 60% of the Ver-
,gs ' ' p/ g' ,
; mont Electric Co-op's lines are ,m wooded areas t
' because more and more unused farms are turnmg m, to
, l' , woodland. In 1972 we spent 560,000 on right of ways. hg' ';
f Inflation and growth of timbered area has shoved that * " .
, py % l cost up to 5169,000 in 1977 while our miles of line in-
' .( - } N creased only 25% during the same period. .*(,; . 4'f"Ig 4
g' , Our linemen are used to the hardship and isolation . .[ ' ,' f of the rural areas they serve. That doesn't make it any casier. Roads are full of potholes and twisted in the # '
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spring. They're deep in mud at times. All this is //;
<*-,l nerve-wracking, slows trucks, is damaging to them, - ^ __
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- pk and makes service in the country even tougher. The 1M?$
li'
"' trouble is never just around the corner. All this adds m. W i ;y%
to the cost of rural service. A N -2)
?1 \, ' ' c Training and Experience Training in safety - we have regular courses * 'ry'~$b. t
"'h h,..j [ '
e p'- 3 throughout the year - and training for the job help $fj-. f t.' d1r U q
- N, holds costs down. But we will always be faced with '
t- 4 d M j costs of major storms. We were hit hard in Is77 and spent 565,000 in restoring service. And from now on !.
' O I'h we'll be faced with the cost of land that is growing up !>*
J. Alain Paquette in forest. ' Somebody must serve the countryside and it seems ; ., i to me that it had better be somebody with experience. i 10 Our linemen have years of service on the job. Most i have been with the Co-op five years or longer. Crews As farmland retreats, forest takes ! must and do work like teams and most of our crews over. A scene in Morristown. ( have worked together for years. All this contributes ; to our ability to serve well. 1 A surprising statistic: Burlington Electric Depart- - i ment's total expense for operation and maintenance of g i overhead and underground lines is less than our ex- s l
, , _ _ . _ , pense for right of way clearing and spraying alone.
Robert E. Lamb, b
?$W I Line Superintendent "
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[h,. . . . Luther Parkhurst at radio while Richard Bruce Towne
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Roland Sargent Kenneth Locke
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(Perk) Perkins checks substation. ,
~M l Purchasing Department I 1 k ,. ' -$ ,, .y l 9 D-f Purchasing Agent Everett(Bobby) -=
l Dubray checks inventory records -' ' w hich keeps supply information right I
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up to the minute.To hold down costs, l the Cooperative is rare among utilities Tl-.,3
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1 Consumer Accounts Emergency Dispatching A helping hand when members need help to straighten out ac-
'V-tr counts and responsibility for keeping what's owed the Co-op low. ' . v.E.7ph> ,c 9'*
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The voice of Stary Nye - more than
' the twinkle of her eyes -is better
?' known to hundreds of Co-op members
?1 , who phone in emergency. h1ary, who ;
' ' ,f worked at the Co-op office for many l
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years, now takes calls at her home in l ' _ . . Johnson. Crews know her voice, too, 4 '
- forits calm and her mind for its good
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l Treastirer's Equity as Percent of Total Assets Report j i During 1977, your Cooperative worked hard on so m1 ion two fronts: l To improve its equity-ownership position and to "p". ** provide for an adequate supply of electricity to meet 40 stillion ; g your future needs. W .g: Ka - Equity The Cooperative in 1977 achieved operating /N NT k margins of 5127,353 and non-operating margins of 30 *Ii " >... c 3 , C 4 5148,394 for a total of $275,747. The equity-owner- g -{ K l f,j , i p,MS . 44- A a %, ship position went from 13?o at the end of 197t> to o 15*o at the end of 1977, the 2cc Mcrease sought by 20 stillion *
)l Trustees each year. h. %. _p g d.%g, s Power During 1977, your Cooperative received a commitment from the Rural Electrification Adminis- 10 Niilli a MM
,c~w . .
Mb?> , 3l' E tration for a $15.816,000 loan bearing interest at 5o. %d1M.- #y ?\ 3j. :l' The proceeds of this loan will be used specifically to ' l l invest as a joint owner in future generating plants N= W !i now planned or under construction throughout New 1977 1987 England. The money will be spent over a period of Trustees have said by 1987 equity (ownership) must be approximately 10 years and will assure the members 30". of assets, which in their opinion will make the Co-op of the Cooperative of an adequate supply of base-load financially sound. By then, they hope, REA will change its power in the future. The 51,086.211 progress demand for 40~ equity. Those who supplied the equity - payments made in 1977 on these plants were paid the members - will begin getting their share of it back. from the proceeds of the loan. Repayments to REA do not begin until five years after the date of each note. , , , The repayment period is then 30 years. The interest rate is fixed at 5"o for the entire term of the loan. - A Sign of Health Accounts receivable continued to ** l decline in 1977, a healthy sign that members are meeting their obligations to the Cooperative in a time- Percent of Family's ly manner. Payment of your bills on time helps keep "' Spending /1977 our short-term borrowing at a minimum and thereby 59,244 Income saves interest costs that you would otherwise pay for (Before Taxes) in your electric rates. .n i What Forests Mcan The right-of-way maintenance program accounted for a substantial portion of the in- y crease in Distribution 41aintenance shown in the .e C Statement of Operating Revenues and Expenses. As % Vermont's fields return to forests, it is becoming in- O creasingly expensive to keep the electric lines clear. m g inflation Inflation continues to take its toll. The $ 13 l Statement of Operating Revenues and Expenses shows p ; that while Operating Revenues decreased 5146.431 * < ' over 1976 (mostly due to the rate decrease in Novem- 0 $ ber 1976), Operating Expenses increased by $215,088. Z O zn - Electricity And Time Because today in our homes we $ $ have chosen to save more time in more ways - from C ::: $ >- washing dishes to drying clothes - we use a lot more P b ! electricity than we did forty years ago. We seem con- " @ w E vinced that when we buy electricity we buv time. I C
*Hnk we do and I believ'e electricity and th'c h technology it runs has freed mankind from the slavery e d of constant drudgery, giving us the time to lead mean-ingful lives. Among all the things that we spend our money for, electricity is the only thing we buy that makes most of all else we buy possible - from the toaster to the light bulb to the furnace blower, radi This graph compares the price of 850 KWH per month avera,;e x and TV. Electncity makes our lives different 24 hours on Co-op lines to a:l other expenses of a family of four with an a day. ,y,, age yearly incorre of 54,:44.
- - h.=s....#ta,w .a .a,i.omny< ..ah .ab ,
A tum of e0 employees. s ACCOUNTING Jennifer Lynch Linda Reeve g
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3 Lois Beard > l l Jane Tallman ' LINE "[t Robert E. Lamb y . , L^ I Richard Simays g
'k M Alan Cole ,,
Kelley Burnham
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Roland Sargent * *
's Stanley Ellow '. ,-
b,M \ Kenneth Locke , Richard Parker -g ,. s lowph Pichette N -k . - fI laurel Persico Bruce Towne
. 4
}D Louis Audibert /'hm t'
'y I' , M.' ?
Elmer Gates 1 Jim Harold [IY h> s ( J. Alain Paquette l #. 4 Luther Parkhurst "
-, %"$ 4 , N-
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Richard Perkins -
'J LeonarJ Sweetser Robert Duckless
, " SY ' - "
_, e Lee Hayford Kevin Kidney
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- 5 ,., Y LNCINEERING .*
John Bohn , [,. Peter Rodin - Lawrence Fortin [f,h,,' 7. Dorice Allaire p 'e i .- William Tarbos \ , ' k;.- MEMBER SERVICES Philip Locke I'.l' ;I [ Mary Gates \ I ' Sharon Hall .,
- D Clayten Russell i
, . j William Lamb D '
Ernest Audibert ,gh Donald Gillen q Larry Perry METER DEPARTMENT l Lloyd Tilton I Milton Prescott We Deliver Electricity To Danny Perkins EMERGENCY )l p{ DISPATCHER 8,600 members and patrons. . CUSTONtER ACCOUNTS Mary Nye- 300 are commercial. l Mary Sylvester Maryann Ingham GENERAL AND 800 are summer seasonal. 7,300 are residential.
- j. fg 3 3
14 Shirley Messier Page Guertin ADMINISTRATIVE Walter N. Cook Altogether they use an average of 850 KWH each month and pay ,y [ l Rita Parker William J. Gallagher an average 5517 each year or a .q Ruby MsNally Marie Walker total of about 54.4 million. ' 'il' Debbie Cole Jean Dix ' 3 Melissa Gillen Ann Lavalla Needed to accomplish this 1,500 miles of line. l PURCHASING & MECHANIC Nora Winckler 24.000 poles. .;. p q. Everett Dubray CUSTODIAL 15 vehides . .l;.' < Roger Marcous William Bradley 6,700 transformers I* l 9,600 meters Clifton Thompson Roger Duffy
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N 88% of Cooperative Revenue iS Residential
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=
J d Only 12 *'. comes from all other users, commercial, in-Justrial and large power.
BALANCE SHEET Exhibit 1 DECEMBER 3I,1977 AND 2976 Assets A glance at the opposite ASSETS (Note U page shows better than pictures Exhibit I what the assets of the Co-op are and do. Total Assets grew S1.873,501 in y977 y93 , 1977 to S14.422.783. Utility Plant: (Note 2) Utility Plant The net investment in Electric plant in service utility plant increased by - at cost $13,899,826 512,077,786 922.040
$2,051,044. This investment repre' Completed construction l
sents: not classified 75t,000 330,219 427,781 Distribution Plant Work in progress 1,414,362 411,440 1.002.922 ansf ers, etc.) S 794,271 ' ' ' ' ' Generation Plant S1,086,211 Less: Retirement work General Plant in progress (dr) ( 2,085) ( 925) ( 1,160) (Trucks, equipment, Accumulated etc.) 5 165,562 provisions for in 1977 the Cooperative invested depreciation , 3,625,588 3.322.458 303,130 S245,432 to connect new members 3.623,503 3,321,533 301.970 who paid S200,903 of this amount. Net Utility Plant 512.448,685 510,397.912 52.050.773 The increase in generation plant . represents continued progress Electric plant acquisition payments in various generation adjustment S 94.759 5 105,288 ( 10,529) units to be constructed throughout Electnc plant held for New England. Not shown in future use 800 800 Operating Expenses on Page 18, Nuclear fuel in process 38.421 27,621 10.800 these payments are made from an Investment in REA loan on which we make Utility Plant 512,582.t>65 $10,531.621 2.051,044 payments five years hence. The plants are described in the auditor's Other Property and Investment - At Cost: Note 2. Non-utility property Other Property and Investments (Note 3) S 20.000 S 20,000 are principally our ownership in. Patronage capital terest in Vermont Yankee Nuclear from associated and Vermont Electric Power Com- organizations pany, plus investments in the Na- (Note 4) 1.706 1,077 629 tional Rural Utilities Cooperative Investments in Finance Corporation (CFC). CFC is associated a bank which is owned and organizations operated by the rural electric (Note 51 238,679 190,637 48.042 cooperatives of America. Your Other investments 538,509 537.641 868 Cooperative obtains a portion of its Restricted funds 18.265 18.324 ( 59) long-term financing from CFC and S 817,159 5 767,679 49,480 almost all of its short-term borrow- Current Assets: ing. The auditor s note No. 5 ex- Cash - general funds 23,001 S S 77,858 ( 54.857) plains our investment commitments
- construction to CFC. The interest and dividend funds - - -
income derived from these m- Temporary cash vestments help keep electric rates 28,875 investments 129,765 ( 100.890) down. Special deposits
. 475 475 Current Assets show a decrease in Notes receivable - net cash and accounts receivable. A (Note 6) 148,518 93,987 54,531 strict adherence to rules and regula-Accounts receivable -
tions filed with the rublic Service net Board and cooperation trom the (Note 7) 248,304 367,037 ( 118,733) members in meefing their financial Afaterials and supplies 450,812 438.027 21,785 obligations has brought a continued Prepayments 34,680 25.263 o.417 decrease in what the Co-op is owed. Prompt payment of bills by Total Current Assets S 943,665 5 1,132.412 ( 188,747)
, members helps keep the short-term Deterred Charges and loans down and thus saves interest Debits S 79.294 5 117,570 ( 38.276)
" P"" Total Assets S14.422.783 512.549,282 1.873.501 (Th.e accompanying notes are an integral part of this statement)
d i Administrative and General l C:6
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- Jean Dix, left, has been assotiated with the Cooperative for many years, first with Liabilities and Other Credits j Halifax Electric Co-op and, after its merger with Vermont Electric Co-op. Nora Equities and Afargins continued to Winckler, center, has handled major secretarial chores for seven years. Ann grow in 1977, an increase of Lavalla, right, has been with the Cooperative at the Halifax office. 5475,424 over 1976. This item ,
j ' represents the members' ownership interest in the Cooperative. Only i BALANCE SHEET with a healthy equity position can ! DECEMBER 31,1977 AND 1976 the Cooperative assure itself that it l LIABILITIES AND OTHER CREDITS will be able to secure adequate long-I Exhibit I terra financing, at reasonable rates, to provide for the future. During 1977, we connected 428 new con-Increase sumers to our electric system and 1977 1976 (Decrease) we anticipate a similar number will j Equities and Atargins: be added this year. t h!ernberships S 40,845 5 39,350 1,495 The Cooperative must secure an Patrenage capital adequate supply of power and pro-(Note 8) 1,743,974 1,422.e59 321,315 vide adequate distribution plant to Other equities 333,003 184,609 143,394 be able to serve both the existing Donated capital 31,430 27,210 4.220 and future members. Thus, we must Total Equities . keep our financial house in order at and h!argins 5 2,149,252 5 1.673.828 475,424 all times. Long-Term Debt As anticipated, Long/Tm Debt I ng-term debt continued to grow in 16 (Note 9) 511.626,241 510,623,952 1,002,289 9 ver h76' b$ jre$ase' b 'ars 6-terest at 5% per annum and is Current Liabilities: S 400,000 S repayable over a 35-year period. By Notes payable - 400,000 careful management of cash we put Accounts payable 132,448 82.025 50,423 off borrowirig as long as possible Consumers' deposits 45,427 34.168 11,259 while building equity, thereby keep-Taxes accrued and 26,682 ing long-term delt and equity in payable 38,761 ( 12,079) proper balance. While we have an Other accrued excess of $17 million unadvanced liabilities - 1,526 ( 1.526) money committed to us by REA Total Current and CFC, we do not draw on it un-Liabilities S 604.557 5 156.480 448.077 til needed to mal.e accessary in-Deferred Credits 5 25.342 5 78,485 ( 53.143) vestments in generation and distribution plant. Operating Reserves 5 17,391 5 16.537 854 Current liabilities Short-term notes payable at 5400.000 at year enJ were converted to long-term debt in Total Liabilities February,1978, at a lower interest and Other Credits 514,422.783 512,549,282 1,873,501 - rate. Other items in this category represent normal liabilities in con-(The accompanying notes are an integral part of this statement) " P' ' I V' '
",,*I ',
l g STATEh1ENT OF PATRONAGE CAPITAL AND OTHER EQUITIES FOR THE YEARS ENDED DECEh1BER 31
&l 4I Exhibit 2
=d,aph increase
$(f) ? b Patronage Capital:
1977 1976 (Decrease)
, .. Assignable $1.059.453 $ 932.090 127,354
# Assigned - Year 1965 7 M'M Patronage contributions, 12.212 12.212 G.O. 52 o72,309 478.348 103.961 51.743.974 $1.422.659 321,315
^ ^
' Other Equi *ies:
Operating margin S( 12o.837) S( 126,837) Controller William J. Callagher Non-operating margin 450.042 301,648 148,394 Capital gain 9,798 9,798 Exhibit 2, Patronage $ 333.003 5 184.609 148.394 Capital and Other Equities STATEh1ENT OF PATRONAGE CAPITAL AND Patronage Capu.ta! Since Vermont Electric Cooperative. Inc., is a non-OTHER CREDITS DECEh1BER JI,1977 profit corporation under both Federal and State law, all revenues Exhibit 2a from members in excess of expenses must be assigned back to those PATRONAGE CAPITAL members to an account in each Assignable Assigned Balance member's name. The accumulated Balance - patronage capital to date of January 1,1977 $ 920,556.77 512,212.00 5 932.768.77 51,743,974 repre ents the greatest Operating margin 1977 127,353.27 127.353.27 portion of the Cooperative's equity, 1,047,910.04 12,212.00 1,060,122.04 The cash associated with this Transfer from patronage capital has been used t Halifax Cooperative,
,1) pay off long-term debt, 2) mvest Inc. 11,542.67 11,542.67 m certam plant items for which no financing is available, and to 3) pur- Balance -
chase various other assets which are December 31,1977 51,059.452.71 $12.212.00 51,071.664.71 needed to run your Cooperative business. In other words, your share Patrons Capital Credits in equity (ownership) is a share in G.O. 52: assets represented by poles, wires. Balance - January 1,1977 5 478,348.04 S 478,348.04 17 ehic s to nam a e$v'. " Additions 1977 - Other Equities The increase of 193,960.89 net 193.960.89
$148,391 represents dividends on our Vermont Yankee and VELCO Balance -
stock and interest income on short. December 31,1977 5 672,308.93 S 672,308.93 term investments. The increase helps to improve the equity position and keep electric rates down. OTHER EQUITIES Non. Operating Operating Capital Exhibit 2a starein Atargin _ Gain Tora! Exhibit 2a is presented by the Balaace - auditor to show the changes in the Ifif77 S(126.837.a9) $301,648.16 59,798.17 5184,608.94 patronage capital and other equities Non-that took place during 1977. The ex- operating hibit shows three sources of the in- margin creases in 1977 - 1) operating 1977 148,394.34 148,394.34 margins. 2) contributions from new members being connected to the Balance - system and 3) non-operating 12/31/77 $(126.837.39) 5450.042.50 59.798.17 5333 003.28 margins.
STATEMENTOFOPERATING REVENUES Exhibit 2b ANDEXPENSES - FOR THE YEARS ENDED DECEMBER 31 e, p ;f, lc',, y',g]nefe, ?y? Exhibit 2b delivery of electricity and a variety _ of activities to keep it flowing over 1,500 miles of line into 63 towns to increase 1977 34,000 pecple (about 8,600 1976 (Decrease) members), or 5.4 year-round OPERATING REVENUES S 4A84,657 5 4,631,088 S(146.431) members per mile of line. The sup-OPERATING EXPENSES: ply of electricity to far-flung rural residents is expensive. In 1977 Co-op members required 95 million WHOLESALECOSTOFPOWER kilowatthours of electricity. The 5 1,859,202 5 1,868,598 $( 9,396) peak winter demand was 26.500 I Transmission-by others Subtotal 367,605 346,176 5 2.226,807 $ 2,214,774 21,429 5 12,033 KW. This dropped to 12,000 KW in the month of July. Operating Revenues decreased in 1977 due to two factors. One was
. ~ . . . ~ _ m. ... . a the rate decrease which took effect in November 1976. The other was continued conservation efforts by CONSUMER SERVICE-RELATED OPERATIONAL COSTS members. Unfortunately, the con-Transmission - servation practiced by members in operation $ 770 $( 110) 1977 was directed toward saving Distribution . energy (kilowatthours) and not sav-operation 197,195 190,187 7,008 ing during peak demand periods.
Transmission - I II maintenance Distribution-maintenance 1,780 367,458 5,807 235,414 ( 4,027) 132,044 This meant that in 1977 the Cooperative bought more demand (kilowatts) even though the kilowatts it owned already were Generalplant used less. Members continue to use maintenance 17,998 14,871 3,127 too much electricity at the wrong Consumer acounts time between 4 p.m. and 8 p.m. expense 259,177 246,7 # 12,380 Conservation during peak demand Sales expense 2,797 4,031 ( 1,234) period is essential if members expect Administrative and to save money over the long run. general 381,785 432,344 ( 50,550) Operating Expenses are divided Abandoned work into four categories: orders 4.477 6,828 ( 2.351) 1. Wholesale Cost of Power Subtotal $1,231,667 51,137,049 S 95,618 11. Consumer Service Related Operational Expenses
.~ .-
~. .- -
- . . - . 111. Utility Plant Related Fixed Ccsts UTILITY PLANTRELATED FIXEDCOSTS IV. Patronage Capital and 18 Depreciation and Margens amortization 5 '420,356 5 382,125 5 38,231
'l ax expense
- 1. Wholesale Cost of Pcwer 173,852 156,887 16,965 The Cooperative was fortunate to negotiate an advantageous swap of III Interestonlong-termdebt 302,412 - 246,476 55,936 contract power during 1977. The Allowance for peak load of the Cooperative drops borrowed FUDC ( 3,334) ( 3.334) off drammtically in the summer Otherinterest charges 1.514 975 539 months. This means that we fir.d Subtotal S 894,800 5 786,463 5 108,337 ourselves with an excess amount af base load contract power during those periods. Because a bese load Fl ant is igned t TOTALOPERATING $4,354,274 5 4,138,286 5 215.958 8'"
p [I"j ci , EXPENSES
. as possible, it has a very high de-mand cost associated with it. We Misc. income Deductions _
3.030 ( 76) 3,106 were abic to swap a good portion of _ s PATRONAGE CAPITAL AND MARGINS IV _.._.m Netoperating margin
~ . ~ _ .
$ 127,353 5 492,878 m......._. __ _
5(365,525) Ie
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I. Power I 49.6e l 1 l l l l 1 1 IV DL II. \ 2.9e Fi=ed Service f 20c 27.5s i l Abandoned work Order, and Seiro Espense .2a j Feblic Servu Board Empease .h i IV. ! b***"*' ' Patronac Capital and Margins _ l 2.9C
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1.?< l Legal and Eas_%eerms this excess capacity with another i utility and received in return a , power contract with a much lower , ,,,,, p m m, m j demand cost. This swapping of j power is the reason the wholesale j cost of power increased only a , minor amount in 1977 over 1976. ; Unfortunately, the costs will rise in , i 1978 and that is the reason for the rate change which became effective ; March 1.1978. > 19 ll. Consumer Service Related , Operational Expenses % The largest increase in this category was $132,044 in distribu-tion maintenance which occurred because of increases in the right-of- ' way clearing and spraying program and the disastrous maior storms in the first five months of 1977. Ad-miriistrative and general expenses , decreased by $50.559 because of a yj dramatic decrease in regulatory \l commission expenses. In 1977, for the first time since 19o9, the Cooperative was not involved in any rate cases. Of each dollar you pay for electricity,49.6 cents pays for power,27-1/2 cents pays for service, 20 cents for fised charges (interest, depreciation, and tases) and two and 111. Utility Plant Related Fixed nine-tenths for patronage capital and margins. The service block is enlarged to Costs demonstrate the growing cost of maintenance of right of-ways in a system where The increases represent normal in. farmland is being replaced by forest. creases associated with our growth in plant investment.
. e Exhibit 2c STATEMENTOFNON-OPERATING Merchandising ret enues and REVENUESANDEXPENSE Costs The Member Services Department continued to be self- FOR THE YEARSENDED DECEMBER 31 supporting during 1977. We attempt to operate the department as close Increase to break even as possible because 1977 1976 (Decrease) we are non-profit and there is no re- Merchandising revenues $300,065 5283,046 5 17,019 quirement to build equity in that - Merchandising costs 295.194 282,910 12.283 part of our business. As a result, Net Merchandising 4,871 135 4,736 some years we achieve a modest margin (like 1977) and come years Allowance for funds used we have a slight deficit. The history during construction 31,750 31,163 587 of the department over the past Miscellaneous income decade, however, has been one of a 629 394 235 Interest and dividend self supporting, non-profit opera- ncome - net 25,040 111.144 86.104 P rsonnel involved in the ac- Net Margin for Period 148,394 87,220 61,174 tivities of the Department work predominantly in other areas of the Balance - Beginning et.
Cooperative's operations. Year 301.648 214,428 87,220 The chart shows why the sale and service of appliances (including Balance - End of Year 5450.042 5301,648 5148,394 water heaters) enhance the Member Services Department and play a dramatic role in helping to keep of the payroll burden would be Vermont Yankee and VELCO stock, electric rates lower. Note that only shifted to categories that affect plus interest received on temporary about 32.48'o of the total payroll of rates, cash investments, a result of the this department is devoted to the Interest and dividend income careful management of our cash merchandising and water heater represents dividends received on our flow. programs, while almost two thirds is fully devoted to furnishing elec-tric service. If the sale and service ' of appliances were eliminated, more Total Member Services Dept. Labor Costs Revenue and Expenses of Member Services Department OF TOTAL DEPARTMENT LABOR COSTS sate ANo SERVICE Or Am:ANCES TAKES ONLY tr 19'6 33_gs APPL 1ANCE Revenue $ 249154 $ 222.706 Espenw 235 800 211 820 \ ^ 5 13.345 $ 10 88o 20 coor ELECTRIC HEATING coNstMERACCoONTs Revenue $ 71) $ 3.550 Espense 180 4 80$ H **
~'
St 251) Si 1.255) CO'OP h4AINTENANCE WATER HEATERS Revenue $ 15.953 $ 14 ell
- 88 '
Espense 15 613 14 e07 _L
$ 340 $ 304 El.ECTRICIANs SERVICE Revenue $ 15120 $ 17.689 coor Espense 17e55 32.539 ortaATIoNs 22.5 %
$ 2J351 $ 4 850i SERVICE Ot,TOF WARRANTY Revenue $ 14 409 $ 14.100 l Empeew 25 737 19 140
$ 5.828) $( 4.9501 03 %
#N#M N WORK ON TOTAL REVENt'E $ 300 065 $ 283 046 UT111TirtANT 20.6 %
EXPENSE 295 194 282 911 3 8.2*l
.$ 4 871 . $ 135 mtxrost ,
l Block is 100'"e of labor costs of Member services Dept. White area shows only J2.4'"e ! devoted to sales and service of appliances.
Meter Department hN sh wm i w_ yp , Me . dm.s.
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) 3 't At the warehouse and garage in Johnson,1.loyd Tilton tests meter. Danny Perkins checks meter on rack.
p Reading, testing, and maintaining meters is the job of the meter i Department. Lloyd also works with Page Guerton of Consumer Ac-counts on a study of demand. Danny and Milt read meters from one i end of the system to the other, covering Derby Line in the north and
,i seasonal members throughout the Co-op territory.
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STA TEMENTOFCHANGESIN g)N FINANCIAL POSITION
.t FOR THE YEARS ENDED DECEMBER 31
; ,r m ,- a Exhibit 3 1977 197c, p"tg+-r, y': ~ Funds Were Provided By:
- ' Operating margin - net S 127,353 5 492,878 f !g '- .
Non-operating margin Depreciation and amortization 148,394 87.220
. ~.. expense 420.356 382,125 d k. :: 696,103 962,223 Milton Prescott reading meter at Depreciation allocated 39.319 32,338 seasonal member's house in Franklin. Niemberships 1.495 2,150 Advances from R.E. A. and C.F.C. 1,354.000 743.000 Retirement salvage 96.176 117,810 Exhibit 3, Statement of ~
Decrease in working capital (increase) 636,825 ( 77,715) Changes in Financial Operating reserv. 854 812 Position Donated capital 4.220 3,021 Other patronage capital - G.O. 52 193.961 147,836 1 in addition to the revenue and ex- Plant held for future use - 29 U pense items shown in Exhibit 2b. your Cooperative requires funds for 73.022.953- S1.931.504 other purposes. Exhibit 3 shows where the money came from and Funds Were Used For: where it went in 10 7 and 1976. As Extension and replacement of always, most of the funds were used classified plant $1,129,029 $1,456.728 for plant additions and Payments on long-term debt 351,711 335.449 replacements. Cost of plant retirement 33.271 58,933 Your Cooperative is in good Increase in other property and tinancial health. We must continue investments 40,480 91.563 to enhance our equity position so Increase in net of deferred debits that we e,n continue to show the over deferred credits (decrease) 14,8e8 ( 147,609) financial community that we are Adiustments to depreciation responsible money managers and provisions 1.933 - can carefully balance our need for Addition to plant unclassified and long-term borrowing with an ap- under construction 1,430,702 105,970 propriate outright ownership in- Addition to nuclear assets 10.799 27,622 terest (equity). Of course. anyone Retirement work in progress - who knows Vermonters would ex- credit 1.100 2.848 pect nothing less from a Vermont S3.022.953 51,931.504 corporation.
Accountant's Report Buildings Composite Rate Office furniture and equipment 6-10 "o l NOTES TOHNANCIAL STATEMENTS DECEMBER 3L 1977 f,'p",'9f,",'f qu , Laboratory equipment 6"o ' l
- 1. Assets Pledged: Power operated equipment. 6-10 %
Communication equipment 10 ". All assets are subject to the first mortgage lien Miscellaneous equipment 4 "o Demonstration equipment 10*o held by the United States government-Transportation equipment Mileage
- 2. Electric Plant and Depreciation Procedures: ElectHe plant acquisition is being amortized over a fif-teen year period. During 1977 the amortization totaled The major classification of plant is as follows: 510.528.80.
yo77 7973 Electric plant held for future use represents the cost of Intangible Plant 5 1,547.99 5 an ption to acquire land expiring August 1978. Transmission Plant 926,587.89 902.430.90 Distnbution Plant 11,704.947.04 10,947,922.93 Nuclear fuel in process represents the cost aggregates of General Plant 1.266.743.62 1,125.884.40 the proportionate share of the fuel costs to date of: Completed Construction: Unclassified 757,990.95 330.219.25 Pilgrim Nuclear unit S 9,947.82 Construction Millstone Nuclear unit 9,246.08 Work in Progress 1,414,3el.04 411.440.09 New England Power 516.072.188.43 513.719.445.56 ' 538.420.50 (A) Construction work in progress consists of:
- 3. Represents 20 acres located in the Town of Troy, Vermont.
General and distnbu-tion plant 5 83.642.46
- 4. Patronage capital from associated organizations:
Generation: The balance represents the patronage capital certi-Millstone Nuclear Unit ficates received of the National Rural Utilities No. 3 of which the Cooperative Finance Corporation, ' cooperative has a
.2% interest 5 883.271.98 5. Capital Term Certificates:
Pilgrim Nuclear Unit Investments in associated organizations include No. 2 of which the caiptal term certificates (CTC) of the National cooperative has a 351,993.12 Rural Utilities Cooperative Finance Corporation
.2% interest in the following amounts:
New England Power 1977 1976 Nuclear Units No.1 and No. 2 in which 5235.307.00 $187,112.00 the cooperative will acquire a .2"o interest 67,286.15 The corporation is obligated to purchase additional Seabrook Nuclear Units CTCs in 1978 through 1985 in the' amount of
$477,673.00 in annual installments based on the esti-ic he c r ive mated revenue of the years.
t te 26.672.00 1,329.224.24 6. Net of the following' provisions for doubtful ac-Eagle Mountain project 1.495.24 1977 1976 51.414,3el.94 5 4.185.34 5 4,185.34
- 7. Net of the following' provisions for doubtful ac-
- counts:
The cooperative is obligated for the proportionate share 19:7 1976 of the carrying and progress costs in the nuclear pro-lects. S43.478.43 533.895.01 Provision has been made for straight line composite 8. Under the provisions of the first mortgage note depreciation of the transmission and distribution plant agreements with the U.S.D. A. accumulated patron- v
- at the rates of 2.6% and 3.0% per annum. age credits may not be remitted the applicable patrons until the total of equities and margins General plant depreciation rates have been applied on a equals or exceeds 40 percentum of the total as-straight-line basis at the following rates: setsof thecooperative.
"~~ ~ ~'
- 9. The lorg-term debt to R.E.A. is represented by 7 two percentum first mortgage notes payable to the
' United States Government, totaling 58,348.946.53 Certification of Certified remaining balance and five percentum notes of 53,057,127.14 outstanding balance. The notes are Pubh.c Accountant for 35 year periods each and principal and interest installments are due quarterly in equal amounts Peter A. Castalde of approximately $148,271.00. It is estimated that Certified Public Accountant installments of 5675.000.00 due within the next 44 Highland Place twelve months will include a 535o.000.00 in prin Ridgefield Park, N.J. 07660 cipal. The notes are scheduled to be fully repaid February 22,1978 at various times from April 1978 to June 2012.
J. Douglas Webb, President
- 10. Litigation: The Board of Directors enn nt Electric Cooperative, Inc.
We have requested that corporate counsel advise us of anylitigation of which heiscognizant. Gentlemen:
- 11. Pension benefits are provided for all eligible m-We have examined the Balance Sheet ployees under the retirement and secunty progra "
of the Vermont Electric Cooperative, of the National Rural Electric Cooperative Associa-Inc. (a Vermont corporation) as at tion. The cost of the plan to the cooperative was December 32,1977, and the related
$31,754.52 which was allocated to expense and con-statements of Operating Revenue and struction and retirement cost aggregates.
g ,p ,,,,,y,,, ,, ,,g g ,,,,3 Su ,p ug , and Source and Application of Funds Accountm.g Department for the twelve months then ended. our examination was made in accor-dance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing pro-cedures as we considered necessary in y the circumstances. In our opinion. the financial state-ments referred to above present fairly n* the financial position of the Vennont v , Electric Cooperative, Inc. at
&,Q 3 December 3I,1977, and the results of its operation and changes in financial position for the twelve months then y ended in conformity with generally j : accepted utility accounting principles applied as a basis consistent with that y
of the preceding period. 23 Peter A. Castalde, C.P.A.
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i ( Ehe Comman!Dealth of fEadgachusetts l l i RETURN OF THE CITY . .0F f (
. . .... . . T. A U ??.T O ". . .... ... . . ... .. .
I TO THE . DEPARTMENT OF PUBLIC UTILITIES OF . MASSACHUSETTS For the Year Ended December 31, a m e- - SI ' ff # U to U _6' r Nar".e of o.f.cer to who:n ccrrespondence shou!d l
- John 5 Ocn::s!.s be add essed regarding this report, f*
Ofd.e:. a l title.>'anager 55 k*eir S treet
.. .. .. . .: Oth.ee addrt+<.. . . . ... . .
Form AC.17. Tsunton. Ms. 02730 8.17-1 I
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TABLE OF COMNTS
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4 Page
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8
, Gereral Information ( ' - 3
, Sebou!r of Estimateu 4 Custerr.ers in each City or Town 4 Appropriations Since Beg;nning of Year 5 Change 3 in theTroparty
- 5
, Bonds s s 6 Town Notes : 7 Cost of Plant ' s 8-9 Comparative Balante Sheet '
10-11 Income Statement 12-13 Earned Surphts 12 Cash Balances 14 Materials and Supph, . - 14 reciation Fund Account i 14 De$ity Plant-E!ectne Uti 15-17 Production Fuel and 03 Stock 18
. ' Miscellaneous Nonoperating Ircome 21 t Other Income Deducti>ns x 21 i
Miscellaneous Credits to Surplas 21 5 Miscellaneous Debits to Surplus 21 i'/.ppropriations of Surp!as 21
' Municipal Revenues 22 Purchased Powes 22 Sales for Resalv i 22
*e E!ectric Ope-sting Revenues 37 Sdes of Elect.Meity to Ultimate Consumers 38
*}#, Electric Operation and Maintenance Expenses 39-12
, Taxes Charged During Year 49
[ Other Utility Operating Income . 50 - Income from Merchancising, Jobbing and Contract Work 51 s 1, E!ectric Energy Account 57 f e Monthly Peaks and Output 57
%* ' Generating Station Statistics 53-59
[* iteam Generati::g Stations 60-61
'. t . 'Hydreelectric Generatin- Stations 62-63
, C smbustion Engine and'Other Generating Stations 64-65
'. Generating Stat:stics (Small Stations) 66 Transmission Line Statistics 67 Substations 63 Overhead Distribution Lines Operated 69 Electric Distribution Ser rices, Meters and Line Transformers 69 Conduit, Underground Cable and Submar:ne Cable 70 Street Lamps 71 Rate Schedule Information 79 Signature Page 81 TOR GAS PLANTS ONLY:
Page Page Utility ?! ant-Gas 19-20 Gas Generating P!r.nt 74 Gas Operatin: Revenues
~
43 Boilers 75 Sales of Gas to U!timate Consumers 44 Scrubbe s, Condensers and Exhausters 75 ' Gas Operation & Maint. Expenses 45-47 PuriSers 76 Purchased Gas 43 Holders 76
.%!m for itesale 45 Transmir,sion and Distribution Mains 77 Sa!w of Reiduals 48 Gas Distribution Services, House Governors Record of Sendout for the Yaar in MCF 72-73 and Meters 73 PAGES INTENTIONALLY OMITTED: 23 to 36 and 53 to 56 j 8-17-2 M
L
. . l 3 !
i CENERAL INFORMATION. l ('
- 1. Name of town (cr city) maldag this report.
Citf of Taunton r
- 2. If the Wer dty) has acqui.ed a plant.
Kind of plant, whether gas er electrie. Electric owner from whom purchased. If so acquind.Taunton Electric Co. (Dec. 12, 1395; Oct. 7, J 396 Date of votes to acquire a plant in accordance with the provisfora of chapter 164 of the General Laws. Record of votes: FIrst vote: Yes. 7 : No. - Sewnd vote: Yes. S : No. - I Date when town (or city) began to sell gas and electricity.
- July 1, 1897 ,
i
- 3. Name and addresa of manager cf munic! pal:Ighting: L i John P. Con =als !
'? S.ho** ~' '
Taunton Ma.
- 4. Name and addns: of mayor o 2wgi.g Benjamin A. Friedcan .
49 Dawnport St. Taunton, Ma 5., Name and addnsa of asten (cr ei:y) treasurer: i Eugene L. Gorey '
..^ 20 Orchard St.
Taunton, Ma.
- 6. Name and addnas c! cretor city) clerk: I Ecury L. Galipeau 513 Bay St. ,
Taunton, Ma. I
- 7. Narnes and addnsses of members of municipalIIth: board:
Louis Costa, 17 Ashland St., Taunton, Ma. John F. McCarthy, 31 Power St., Taunten, Ma. Joseph I. Ouinn, 54 3n*fington St. , Tauntr ., Mn. ' Clive H. Olson, 380 W. 3ritannis St. , Tanton, Ma. ' P.udolph H. DeSilva,138 Berkley St. , Taunton, Ma. (Deceased 12/9/77) Jchn Marv..isk, 2!. Fine S t. . Taurten Mr. Ao,o!i nted 12/20/77) L S. Total va. tuation A. of es:ates in town (or ety) acect' ding to fast slate va!ca{acu 69,186,990 Real ; 6,000,340 ?ersonal
- 9. Tax rate for all purposes during the year: $
193.CO
- 10. Amount of manager's salary: 3 33,920.
r
- 11. Amount of manager's bond: $
ig,ggg I 12. Amount of salary paid to membe-s cf muni:ipalIIght board (each): $2,400. Yr. Chairnan [ 2,000. Yr. Each Othar ! Menbe-I 8.17 .; j
4 ,. . A nnual report of....... ............. .....Ta.u..n..t..o.n....M..u.n..i. .c..i.n.a..l....L.
# .i.qh..t..i.n..e
.. d. P...l.a..n. .t.............. .. Year onced oecemtier 31. I 3. 77 FURNISII SCIIEDULE OF ESTDfATES REQUIRED BY GENERAL LAWS. Cl! APTER I64. SECTION 57 FOR CAN AND E!.ECTRIC LIGl!T PLANTS FOR Tile FISCAL YEAR. ENDING DECE.\lDER 31. NEXT. 3
( Amount. INCOME FROST FRIVATE CONSUMERS: 1 From sales of gas.. . ... . . . 2 From sales of electricity. .. . . . .
$24,179,600 ! 3 4
TOTAL 24,179,600
~
5 ExFExsr: 6 For operat;on, maintenance and repairs.. ....... . ...... . 18,535,300 7 For Interest on bonds. notes or scrip.. .... .. . ... ... . .. 1,904,190 8 For depreciation fund ( 5 per cent. on s 49,919,317.06 as per page 9).. 2,495,966 9 For sinking fund requirements.. .. . . . .. . . . .. .. 10 For note payments.. .. . . .. .. .. . . .. 11 For bond payments.. . . .. . . . ... 363,000
^ ~ ~ ~ ~
12 For loss la preceding year.. . . .. . . 13 14 TOTAL 23,301,956 15 Cost: 16 Of gas to be used for munleipal buildings. . . . . . 17 Of gas to be used for street lights.. . . . . 18 Of electricity to be used for municipal buildings... . . .. . . . . 1,025,000 13 Of electricity to be used for street lights. . . .. . .. . . 227,500 20 Total of the above items to be included in the tax levy.. . . . .. 21 22 New construction to be included in the tax levy. . . . .. . . 23 Total amounts to be included in the tax levy. . . . $ 1,252,500 CUSTO.\lERS Names of the cities or towns in which the plant supplies Names of the cities or towns in which the plant supplic GAS, with the number of customers' meters in each ELECTRICITY. with the number of customers' meters in each Num*>er of Customers' Number of Customers' City or Town eters. Dec. J t City or Town Meters. Dec. J t Raynha:1, Town of 3,062
'lerkley, Town of 1,014 Lakeville, Town of 47 M. Dighton, Town of 405 Taunton, City of 16,719 I
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)
TOTAL ' TOTAL 21,247 8.17-4 u l
4 no.i . . i .t...... . . ..Iannto.c..Manicip.cl..LLIh%1as..P.14n.C....... ... .... .......ve , eae.o oecomeer an. iv2 / APPROPRIATIONS SINCE 13ECINNING OF YF. Alt (Include also all items charted direct to t.u levy, even where no appropriation is made or re'tuire,l.) ( I FOR CON 3T:tL'CTION* OR PtlRCNA3E OF PLANT:
* . it meeting 13 , to be paid from t $
g *At meeting 19 , to be paid imm t TOTAL. $ Ton THE ESTIMATED COST OF TME CAS OR ELECTRICITY To DE L'5ED HY Tl!E CITY Olt TOWN FOIL:
- 1. Street !!ghts. ... .... .... ........ .. .. .. .. .. .. . . .. .. ....... .. s 227.500
- 2. Municipal buildings. . ........ ........... . . . . ... .... ... ......... ... . 1,025,000
- 3. .. . _ .
Tof^r. sl,252,500
*Dete on' meetms and waether reestar er speemeL ?Nere insert bonda, anece or tas levy.
CHANCES IN THE PROPERTY
- 1. Describe briefly all the important physical changes in the property during the Inst fiscal perio<1 including additions. alterations or improvements to the works or physical property retired.
In electric property: Installed 1.27 miles of 115 K7 transmission line from the Cleary-Flood Station to Sub. #16. At Sub. #16 installed one 25 MVA LTC
^
transformer, 115 KV/13.3 KV with two circuit'suitches, deadend structure, i f relay and netaring panels ad a 45 x 55 building to house the 15 KV switchgear. Removed a 2000 KVA,13,200/2,400V, three phase transfor=er bank at Sub. #3 and installed a 3750 KVA bank as a replacement. Installed the 2000 K7A bankat Sub. #4. 2 In gas prope.my
. .r i
M 8.17-5
4 I BONDS (Issued on Account of Gas or Electric Lighting.) ; l ' E Pe. lod of Peyments late est Wiegn Autho,lred' Date of issue 0,4ginal issuest et End of yea, Amounts When Payable Rate When Payable : I 1-fay 27, 1897 June 1, 1097 0 125,000 l Sept. 9, 1897 June 1,1!!97 7,500 i 11ay 12,1898 June 1, 1893 3,500 j lbr. 1, 1899 Dec. 1, 1898 5,000 is Mar. 1, 1901 Dec. 1, 1900 3,000
~l July 5, 1901 June 1, 1900 1,500 ig
}!ar. 7, 1902 June 1, 1902- 175,000 ja July 2, 1907 June 1, 1907 45,000 ip Aug. 13, 1913 June 2, 1913 50,000 ju Oct. 18, 1918 June 1, 1919 15,000 ig
!!ay 22,1919 - June 10, l'120 5,000 a 3 jy, July 20, 1919 June 2. 191' 30,000 3r Aug. 13, 1919 Aug. 1, 1919 100,000 in Dec. 23, 1919 June 1, 1919 50,000 -
jff co June 8, 1920 June 1, 1920 400,000 ji{ q June 5, 1923 June 1, 1923 250,000 jg L3 June 0, 1926 June 1,1926 100,090 ;y Oct. 6, 1926 Oct. 1, 1926 50,000 jy Sept. 12, 1950 tiov. 1, 1950 600,000 - in e Sept. 12, 1950 Dec. 1. 1951 200,000 i llay 31, 1955 Dac. 1, 1955 500,000 i
!!ay 31,1955 Sept. 1, 1956 1,500,000 j !!ay 31, 1955 July 1, 1957 2,000,000 100,000 July 1 3.50 Jan. 1; July 1 i Apr. 16, 1964 Jan. 1, 1965 2,000,000 100,000 Jan. 1 3.On July 1; Jan. 1 $ 800,000 i Apr. 16, 1964 Aug. 15, 1965 900,000 45,000 Aug. 15 3.10 Feb. 15; Aug. 15 360,000 i l'ch. 1, 1976 24,000,000 Variable Prine lpal and Interent Payuants 23,800,000 y See Attached D stall ;
K ToTat 33,115,500 ToTat 24,960,000 t The bonds and notes outstanding at end of year should agree with the Italance Sheet. When bonds anal notes are repaid report the Srst three coluinns only. g
.n.., e, e u.. .. . ,. . , e. .- t io.,e,w n ee,t. e..e. e.. u .u..m,._t M e
4
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. m
. q M Har bor- National BANKOF SOSTON 37 FM A N K 1.l N STR C r? . D CSTo N
- M A3 5 CM U S ETTS C2 f l0 617/ 4a2-3 8 3 D Name: City of Taunton, Massachusetts Description of Issue: Electric Loan, Act of 1969 Ec=ds A=ount: $24,000,000.OC Rate Various - As Listed Date of Issue: Feb. 1, 1976 Due: Payable as listed below Deno ninations : $5,000.00 Coupon A=ount: Various - As Listed Callable: No Address: Eugene L. Gorey, Treasurer, City Hall, C'a=nton,:ta. 02780 Pay =ent Interest Coupon Interest Principal Maturing Total Pay =ent Coupo Date Pavable Nu=bers Rate Pavable Bond Nunbers Due &c ur
..==
8/1/76 5948,440.C0 1
- S 948,f40.00 2/1/77 948,440.C0 2 8.50% S200,CCO.00 1 - 40 1,148,440.00 $2;1.5 8/1/77 939,940.C0 3 -
939,940.00 2/1/78 939,940.00 4 8.50 220,0C'O.00 41 - 84 1,159,940.00 212.5-8/1/78 930,590.00 5 930,590.00 2/1/79 930,590.00 6 8.50 235,000.00 85 - 131 1,165,590.00 212.5: 8/1/79 920,602.50 7 920,602.50 2/1/80 920,602.50 8 8.50 255,000.00 132 - 182 1,175,602.50 212.5: 8/1/80 909,765.00 9 909,765.00 2/1/S1 909,765.00 10 8.50 275,000.00 193 - 237 1,134,765.00 212.5: S/1/81 898,077.50 11 898,077.50 ' 2/1/82 899,077.50 12 8.50 3 C0,0 C0. 00 238 - 297 1,198,077.50 212.5C , 8/1/32 895,327.50 13 885,327.50 2/1/83 835,327.50 14 8.50 325,3CO.CO 298 - 362 1,210,327.50 212.5C 8/1/83 871,515.00 15 ' 871,515.00 2/1/84 871,515.00 16 8.50 350,3CO.00 363 - 432 1,221,515.00 212.5 8/1/84 856,640.C0 17 '856,640.00 2/1/35 856,640.C0 la S.50 330,000. C0 433 - 508 1,236,640.00 212.5c 8/1/S5 840,490.00 19 - 840,490.00 2/1/86 840,490.00 20 7.30 410,CCO.C0 SC9 - 590 1,250,490.C0 182.5C S Ou T** D=0 CFFICL 72% Ws AC,e AVDeug F AmeCuH. .*AL2 DCCW SCL.AAC gryn Ose g u,e*Cao STR E CT 8.17-7
Schsdule of Interest and Principal Payable City of Taunton Electr[cBonds Pig 5,2 ~ ' e r . Pay =ent Interest Coupon Interest Principal Maturing Total Pay =ent C--cc Date Pavable Ntebers Rate Payable Bond Numbers Due A -- ( . 8/1/86 0825,525.00 21 - S 825,525.00 2/1/87 825,525.00 22 7.004 S445,000.00 591 - 679 1,270,525.00 S175.C 8/1/87 809,950.00 23 809,950.00 2/1/88 809,950.00 24 '7.10 480,000.00 580 - 775 1,289,950.00 177.5 s . 8/1/88 792,910.00 25 792,910.00 2/1/99 792,910.00 26 7.20 520,000.00 -776 - 879 1,312,910.00 180.C 8/1/89 774,190.00 27 . 774,190.00 2/1/90 774,190.00 28 . 7.30 565,000.00 880 - 992 .1,339,190.00 182.5 8/1/90 753,567.50 29 - - - - - - - -- 753,567.50 - 2/1/91 753,567.50 30 . 7.40 610,000.00 ,993 - 1114 1,363,567.50 185.0 8/1/91 730,997.50 31- 730,997.50 2/1/92 730,997.50 32 7.50 660,0'00.00 1115 - 1246 1,3'90,997.50 187.5 8/1/92 706,247.50 33 . 706,247.50' ~ 2/1/93 706,247.50 34 7.60 715,000.00 1247 --1389 1,421,247.50 190.0 8/1/93 679,077.50 - 35 , . 679,07'.50 2/1/94 679,077.50 36 '7.70 775,000.00 1390 - 1544 1,454,077.50 192.54
~ "~ 1 8/1/94 649,240.00 37 649,240.00 2/1/95 649,240.00 38 . 7.75 840,000.00 1545 - 1712 1,489,240.00 193.7.
8/1/95 616,690.00 39 . 616,695.00 - 2/1/96 616,690.00 40 7.80 910,000.00 1713 - 1894 1,526,690.00 195. 0C
~
8/1/96 581,200.00 41
- 581,200.00 2/1/97 581,200.00 42 8.00 985,000.00 1895 - 2091 1,566,200.00 200.0(
8/1/97 541,800.00 43 e 541,800.00 2/1/98 541,800.00 44 8.00 1,065,000.00 2092 - 2304 1,G06,800.00 200.0t 8/1/98 499,200.00 45 499,200.00 2/1/99 499,200.00 46 8.00 1,150,000.00 2305 - 2534 1,649,200.00 200.0C
~
8/1/99 453,200.00 47 453,200.00 2/1/2000 453,200.00 . 48 8.00 1,250,000.00 2535 - 2784 1,703,200.00 200.0c 8/1/2000 403,200.00 49 403,200.00 2/1/2001 403,200.00 50 8.00 1,350,000.00 2785 - 3054 1,753,200.00 200.0C 8/1/2001 349,200.00 51 349,200.00 2/1/2002 349,200.00 52 . 8.00 1,465,000.00 3055 - 3347 1,814,200.00 200.0c 8/1/2002 290,600.00 53 . 290,600.00 i */2003 290,600.00 54 8.00 1,585,000.00 3348 - 3664 1,875,600.00 20 ,0 8.17-8 , _ . - - - . _ _ _ _ _ _ _ . h
a
.,s...u a 6. vs A: ceresc ann yrincipal Payable City of Taunten Pago 3
- Electric Bonds .
Payment Interest Coupon Interest Principal naturing Total Paytent Coupon Date Pavable Ntriers Rate Payable Bond Nu-ler: Due A.ount
-. ./2003 $227,200.00 55 2/1/2004 227,200.00
$ 227,200.00 56 8.00% 01,750,000'.00 3665 - 4014 1,977,200.00 $200.00 8/1/2004 157,200.00 57 157,200.00 2/1/2005 157,200.00 58 8.00 1,890,000.00 4015 - 4392 2,047,200.00 200.00 8/1/2005 81,600.00 59 J 81,600.00 2/1/2006 81,600.00 60 8.00 2,040,000.00 4393 - 4800 _ 2,121,600.00 200.00 TOTA ~S $39,848*,355.00 $24,000,000.00
, $63,848,365.00 l
l l ' l . 6 6 I4 o e e A e 8.17-9 _ _ _ _ _ _ _ _ _ _ _ _ . _ , _ _ _ _ - . _ _ - - - - - - - - - - - ~ - - ' '
~ -.
E I TOWN NOTES i* (Issued on Account of Gas or E!cetric Lighting.) Porlod of Payments Interest
# " "* i when Authorised* o.a.orissue oricIaUs"s'su'es t Amounts when Payabie Rate whea ?.y bla Ibrch 1.1900 k gJ d , 1900 S 1,300 i July 7, 1970 Oct. 1, 1971 1,000,000 jfin July 7, 1970 r'eb. 8, 1972 1,000,000 July 7, 1970 Apr. 14, 1972- 2,000,000 ['o July 7, 1970 Apr. 24, 1972 2,000,000 j" July 7, 1970 oct, 27, 1972 5,000,000 g
- n July 7, 1970 Jan. 30, 1973 3,000,000 July 7, 1970 ,
Flar. 15, 1973 2,000,000 { July 7, 1970 Apr. 12, 1973 2,000,000 p,
's--
July 7, 1970 Flay 15, 1973 2,500,000 July 7, 1970 June 4, 1973 1,000,000 h os July 7, 1970 June 15, 1973 5,500,000 July 7, 1970 July 26, 1973 2,000,000 <[
- J l c3 Jtily 7, 1970 Sept. 19, 1973 3,,000,000 E
! L July 7, 1970 Dec. 14, 1973 10,500,000 0 l 7' ' July 7,1970 Dec. 27, 1973 2,000,000 f$ ! 5 July 7, 1970 Jan. 15, 1974 4,500,000 l July 7, 1970 !! arch 25, 1974 2,000,000 f 10,500,000 i July 7, 1970 April 12, 1974 I July 7, 1970 !!ny 31, 1974 2,000,000 i June 14, 1974 4,500,000 j July 7, 1970 July 7, 1970 July 19,- 1974 2,000,000 j July 7, 1970 Sept. 30, 1974 10,500,000 ! Oct. 31, 1974 1,000,000 j Ifov. 29, 1973 July 7, 1970 tio/. 20, 1974 2,000,000 i 6,500,000 j l July 7, 1970 Dec. 20, 1974 - 1 July 7, 1970 Feb. 20, 1975 10,500,000 y Nov. 25, 1973 Feb. 28, 1975 1,000,000 i
}Iay 27, 1975 June 6, 1975 1,000,000 j July 10, 1975 2,000,000 1 July 7, 1970 Nov. 23, 1973 July 10, 1975 2,000,000 y 106.501.500 f, l
TOTAL. TOTAt. The 1w-h and noin outstanding at end of year should agree with the Balance Sheet. When bonds and notes are. repaid report the first three columns only. 3 ( *Dr.le at n.cet4ag and wl.ctlier regul.r er et.c ial. lUnt .risina! of t*nds ahd netes including ti.o Lt.at hav. t,oen actirca. j h
i .- N _ 3 TOWN NOTES l (Issued on Account of Gas or Electric Lighting.) {
- 3 Porlod of Paymssts interest ,
Amount of at End of Ysas : r.g When Payable Rate When Payable : :. TQASdAtinXOlte.ht ic,rwardi ollisue $ IV6'pely500 Amounts Jt.ly_7.,- in7a -July-th--197-s- leg 0ayma- --
,l l
May 27, 1975 Aug. 1, 1975 1,000,000 i.3 July 7, 1970 Aug. 20, 1975 6,500,000 i~ H ay 27, 1975 Nov. 20, 1975 1,000,000 !!i July 7, 1970 I?cc. 18, 1975 '1,000,000 j@ Nov. 29, 1973 I!cc. 18, 1975 2,000,000 !M July 7, 1970 Jan. 22, 1976 6,500,003 lh
!C
- o L
o) lb 5 Y :f I
= ln i
i i i a i O
$ 136,001,500 a TOTAL I TOTAL. -
!:L The hands and notes outstanding at end of year should agree with the Balance Sheet. When brids and notes or. repaid report tha first three columns only. [
- Dele af p.esting and wl.athr retular er ocecial. lIlmt originalI.mts of b.nds a ad mete Ir.sluiting thoes thL hve been,rstised. f i . e,nc,, - =4
r r2.;ao3 8 . 1 i i l
- 1 e 54opg.p314o9. . r.N9FMs..ii *ri:. :. . :::. .i::::.::::Y:*a1o1.3a%% h d g
n . . idr na ae tY tsn uo O.Jn n[ ut oe m A
) ly
- n L o
. A s T n
. O e T m l
b u a y loc a e t s P e r e n h r e e t t n h W t s
- a, i
r i e E r e o h o t t r t.. te o . p h a e R r s t. d i i, a . p o e h r i
- e r ig le a f.
) b o
. a y s t g .c n a te 6 P o it n n e dn . i.
h g s e h U t n e W a a. c s . i r m y d . t c a n J. e P o . SlE b t fo n e e E t Tr o d
') o h e O s ir W
Na P e NG f ts t . : Wo Ot n u he e i. s n o . Tuo m S s c A
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u t c n I A l a n l a o f d e e h t
- n. .
I s t s h as t ( r ous e - - iw c i. s e e r tni r e, ul _ oa a nn dg ic, _ ri Ag l ir u O o . , h i. s i. r a e L y a. A f . T o :. O d e T n . u s e . a t l a t f g e, o n e i % ta d D n . a t
) t s
u o s e t o n
- d d
e n s a i r s
- o d n
h t u o b A n e e h h T W S O.gr . N
I . , TOTAL COirr OF PLAN"r - ELE (TTRIC
> (1 .
i
- 1. Report bcl.nr the cost of uti;ity pknt in service ce ding year. Such items shouldic ir.cluded in column effect of such ar..ounts. I according to pnwrited necounts. (c) or (d) as appropriate. .
- 4. Recimitications or transfers within utility Id ant ! -
- 2. Do not include as adjustanents, corrections of 3. Credit adjustments of plant accounts should accounts should be shown in column (f).
additions and reti.ernents for the current or the pre. be enclosed i. parentheses to indic:ste tha negative [ Datance ! Beginning Balance d Line He, Account (.)
- of Year (b)
Additions (c) nellt.ments (d) Adjustinents Transf.rs End of Year (g) ib (e) (f)
- o i%
1 1. INTANGIDIE PLANT $ 3 3 8 8 3 ig 2 IA 3 :n
- H
.*d 4
5 2. PltODUCTION PLANT ip i t-6 A. Stcan Production :H
- n 7 310 Land and Land Rights.
311 Structures and Improvements. . ..
.. 238,009.14 238,009.14 jy 8 5,527,771.29 40,337.03 5,568,108.32 iy , s 312 noiler Plant Equipment. . .. . .. 13,307,967.71 356,917.81 13,664,885.52 io g to 313 Engines and Engine Driven jm 7 Cenerators . . . . .. .........
314 Turbogenerator Units. . ........ ik C 11 12,171,231.94 176,666.53 12,347,898.47 l 'l 12 315 Accessory Electric Equipment.. .. 2,469,787.27 33,469.21 2,503,256.48 l 13 316 Miscellaneous Power Plant
- 14 Equipment. . .. .... .
15 4777.74- 187 789;50 3,370;00- 1-71,-197 A j 15 Total Steam Production Plant. 333 8703 545.09- 62h180.08 3,-370,00- - 34,493,355.1.7_ i 16 U. Nuclear Production Plant : 17 300 Land and land Itights. . ... ...
.i 18 3:!! Structures and Improvements. ..
- 19 322 Iteactor Plant Equipment. ......
20 323 Turbogenerator Units. . . ...... { 21 324 Accessory Electric Equipment....
- j 22 325 Miscellaneous Power Plant t 33 Equipment. .
Total Nuclear Production Plant j [1 a O i .I l
- .I..
t :u i :w i .%
.m_ _ m __ ._ _-. .
I l
=
-s = ,s q 3
TOTAL COST OF PLAMP -El.ECTitIC (Continued)
.D.I.nc.
..in.d n,
....nc. I' Adjustm.nts D.ns fers 2 Acco ant of Ya.t AdJilloas H. tis emeents End of Ya.t *
- Lin.
(d) (.) (f) (g) No. -
- (a) (t.) (c)
C. Ilyd'raulle Prt. duction Plant 8 8 8 8 $ $ f! 1 (3
~
330 f.and and Land Itights. . . . .. . 2 331 Structures and Improvements.... h
=
3
- 4 332 Reservoirs. Dams and Waterways 6 333 Water Wheels. Turbines and } h Generators. . . . . . . .. .. . ...
6 338 Acccury Electric Equipment.. . O! 7' 335 hfiscellaneous Power Plant b* Equipment . . . . . . . . .... ..... 3;:6 Iteads. Railroads and Bridges. . c) 8 9 Totalllydraulle Production Plant ' d 10 D. Other Production liant
- m 11 3101.and and Land Ittghts. . .... .. .
's 12 381 Structures and Improvements.
h: 7 13 312 Fuel lloiders. Producers and 503,568.62 8,377.72 511,946.34 h] Z Acccm.ories. . . . .. .. i 313 Pri.no Ll overs . . . . . . . . . . . . . . . 82,606.68 Il 80,257.90 2,348.78 is all Generators. . ... . . .. 400,148.66 l 34s Accc:.:.ory Electric Equipment... 3!)9,916.21 10,232.45 l Is
- 17 346 hii> cell neous Power Plant .
. Eqdpment. . . ... ...
Tutal Other Production Plant.. 973s742.73- 20,958.95 99477at-. 68-18 14,844,2al.112 641,130.03- 3,370.00- _ 35,488,056 55- . i 19 Total Prrataction liant. . . .. . '
- 3. TItANSMISSION PLANT ' i 20 21 3501.and and I.and Itichts. . .. 207,797.64 1,125.00 208,922.64 i 2.1 351 c!carine !.and &l Iti:i hts 'I WaY 16,325.85 4,706.09 21,031.94 :
23 352 structures uno Improvernents. .. 55,265.94 55,265.94 : 2 353 Station Equipment. . . . . . . ' . 897,081.26 746,918;71 1,643,999.97 i
- s 354 Towers and Fixtures. . ..
796,060.46 34,996.20 831,056.66 g 26 355 Poles and ristures. .. .. . 135,497.73 101,397.21 236,894.94 ? 27 35G Overhead Con.luctors and Devices 133,177.88 37,404.41 170,582.29 2 es 357 tinderground Conduit. . . 2,440.24 2,440.24 $ . 29 358 Underground Cutuluctors and ; De vices. . . . , 30 353 Hoads and Trails. . . .. ... f a
!al Transmiv. inn Plant. 2,185,940.82 984,253.80 3,170,194.62 s 31 .
c .
p y- 9 l 3 ) + i i l j TOTAL COST OF Pl. ANT - ELECritlC (Continued) Dalanc. g P.ra nc. Deginning 3 of Year Additions R.tfrem.nts Adjustm.ms Transfers inu of Year tin. Account (g) 0, No. (a) (b) (c) (d) (.) (f) I g g g y C. ITydraulie Production Plant 3 $ + c,2 2 330 Land and 1.and Rights. .. . 331 Structures and Improvements.. . Q 3 ' 4 332 Reservoirs. Dami and Waterways 6 333 Water Wheels. Turbines and
'3' Generators. . . . ..
p 6 335 Ac&s.ory Electric Equipment.. 'd 7 335 hiiscellaneous Power Plant E-- Equipment. . .. . 33G Roads. Railroads and Bridges. [ c3 4 8 .
~
Total 11ydraulie Production Plant 9 d 10 D. Other Production Plant y 11 310 Land and Land Itights. .. : . 12 311 Structures and improvements. . hu-13 312 Puel lloiders. Producers and Acccmries. . ..... 503,568.62 8,377.72 511,946.34 h2: - sta Prime Atovers. ... . ... . 14 80,257.90 2,348.78 82,606.68 ' 15 311 Generators. .. I I 389,916.21 10,232.45 400,148.66 : 16 313 Accewory Electric Equipment.. . 17 38G hilscellaneous Power Plant . Equipment. . . . . . 973,742.73- 90,958.95- 9947701.68- . 18 Total Other Production Plant. -35,48v ,356.v.2 - Total Production Plant. . ... ..
%,846 ; 7fli _ P*> (.A7 1.3% E 37ACA :
19 20 3. TRANSh11SSION PLANT 21 350 Land and Land Rights. .. 207,797.64 1,125.00 208 922 6/ 22 35t Clearing Land and Itichts el Way 16,325.85 4,706.09 - 21t 031'9/' , 23 352 Structures and linprovements. 55,265.94 55,265 94 - 21 353 stat. ion Equ.ipment. . . . 897,081.26 746,918.71 1'643'999 97 I 5 25 354 Towers an<1 Pintures. . 796,060.46 34,996.20 831*056 66 I 26 355 Poles and Fittures. .. 135,497.73 101,397.21 *
- 5 27 35G Overhead Conluctnrs and Devies 133,177.88 37,404.41 170,582.29 g 2S 357 Underground Condult.. ..
2,440.24 2,440.24 g 29 358 *- 'arground Conductors and w'
.ss.$ cts. . g 30 359 Roads and Trails. . 3,170,194.62 '$
- Tntal Transmiuion Plant. 2,185,940.82 984,253.80 l 31 .
hI .~
10 Annual report of.........Iau3 ton.2:funicip5L1..Lighti:r]..?ME.... . . . . . . . . . . . . . .
... Year ended December 31.1977 l
COMPARATIVE BALANCP SHEET Assets and Other Debits
- 4 m
Balance Title of Account Besinnins of salance inmas. Line Year End of Year or (Decrea se) No. (a) (D) (c) (d) 1 UTILITY PLANT g 2 101 Utiity Plant -Electric (P.17). . . .... $34,793,321.29 $34,635,505.66 $( 158,315.63) W 3 101 Utility Plant - Gas (P. 20). . . . . . . . . . . 4 5 TotM Utility Plant. .. ........... .. 24,793,521.29 34,535,503.65 (153,315763) 6 7 l 8 9 10 11 FUND ACCOUNTS 12 125 Sinking Funds. ...... . ... . ....... 13 126 Depredation Fund (P.14)... .. ........ 432,069.07 25,077.60 (456,991.47 > 14 128 Other Speci21 Funds. . . . . . . ......... 15 Total Funds. . . . .. ... ...... . 4dz,969.0/ - D ,U//.00 ( 4 a o , 'ul . 4 / ) - 16 CURRENT AND ACCRUED ASSETS 17 131 Ca:h (P.14). . . . . . . . . ..... .. . ... 2,692,143.35 1,757,029.77 (935,113.53l 18 132 Special Deposits. . . . . . . . . . . . . . . . . 154,445.42 161,943.97 7,498.55 19 135 Working Funds. . ...................... 1,200.00 1,200.00 20 141 Notes Receivable. .. .. ....... .. . . 21 142 Customer Accounts Receivable.. ... ... 3,032,729.01 3,173,261.75 95,532.74 22 143 Other Accounts Receivable. . . . . . .. . . 23 146 Receivables from 11unicipality. . . . . 165,385.79 339,109.93 173,724.14 g i a 151 Mate-ials and Supplies (P.14). . . 1,650,048.14 1,916,013.27 265,965.13 25 26 165 Prepayments. ..... . . ..... ... 41,010.33 41,739.10 723.72 27 174 L!iscellaneous Current Assets. . . ... .. 299,206.33 38,158.54 (261,048.34? 28 Total Current and Acerued Assets.. . . 3,936,16d.97 7,433,456.33 (oaz ,/J.z.o w 29 DEFERRED DEBITS 30 131 Unamortized Debt Discount., ..... . 31 132 Extraordinary Property Losses. . . . .. ... 32 185 Other Defer ed Debits. . .. .. .. 33 Total Deferred Debits. , . . ... 34 3 *. Total Assets and Other Debits. . .. E43,354,9M.JJ M4,UN.UJy.M 5 U., zod , vu . i g a .% l l 3.17-16
r b j t
~
li Annual repert of..................Ta1.".Ito3.Uti" # '* 4PE1..bihDdCS.NNaa a " . ... veer ended Decee U. MN ' r _ COSIPARATIVE BALANCE SHEET Liab(11ttee and Other Credits c [ 8elence
- Titre of ecow'ne sesinnins et seisau iner m .
Un* Year End of Yeer or (Decreaw) No. (a) (b) (C) (d) , I f 1 APPROPRIATIONS i 2 201 Appropriations for Cor.struction. .... . -
. . . . _ . . . __. L 3 SURPLUS 3
4 205 Sinking Fund Reserves. 5 206 Io ns Repayment. . . . . . .. ........ $ 7,712,000.00 $ 8,157,0C0.00 $ 445,000.00
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6 207 Appropriations for Construction Repayments 32,433.98 32,433.98 [ 7 208 Unappropriated Earned Scrplus (P.12). .. 6,399,032.61 5,75.4,069.72 (644,962.89) ; 8 Total Surplus. . . . . . . . . . . . . . . . . . . . . 14.143.460.YJ 13 V47,3UJ./U l!99@2.39 I 9 LONG TER51 DEBT 10 221 Bonds (P. 6). . . .. ..... ... ...... 25,405,000.00 24,960,000.C0 (445,000.00) [ 11~ 231'No:es Payable (P. 7). . . ....... . ... 12 Tota! Bonds and Notes. . . . . . 25,405,000.00 24,960,000.00 (A4T 000]O) 13 CURRENT AND ACCRUED LIABILITIES i 14 222 Accounts Payable. . . ... ... 2,430,921.46 1,420,914.24 (1,010,007.22) ! 15 234 Payables to Liunicipality. . ... .... . 310,824.00 310,824.00 l 16 235 Customers' Depcaits. . .... ... .. 147,277.15 153,667.15 6,390.00 i t 17 236 T.ues Accrued. . . . . . . . .......... + 18 237 Interest Acerued. . . .. ... .. ...... 810,324.30 795,619.17 (14,705.63) ' 19 242 511sceIIaneous Curmat and Accrued Liabilities 44,252.49 66,839.98 22,537.49 l 20 Tctal Current and Acerued Habilities.. 3,432,775.90 2,74/,2f64.04 (6 % ,911.36) 21 DEFERRED CREDITS
., 22 251 Unamortind Pnmis n on Debt. ..... .. 97,531.15 94,186.49 (3,344.66)
( 23 252 Customer Advances for Construction. . .. 24 253 Other Deferred Credits. . .... ... .. [ 25 Total Deferred Credits. ........ . 97,531.15 94,166.49 (3,344.66-) ;
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26 RESERVES ' 27 250 Reserves for Uncel:ectible Accounts. . . 283,285.69 34>3,484. 86 65,199.17 23 261 Property Insurance Reserve. . . . . . . . . . . 29 2S2 Injuries and Damages Reserves. .. ..... . 30 253 Pensions and Benefits Reserves. . . . [ 31 "55 5!!scellaneous Operating Reserves. . . . ; 32 Total Reserves. . . . . . . . . . . . . . . . 283,235.69 348,484.86 6TTJ9~17 ~ 23 CONTRIBUTIONS IN AID OF I CONSTRUCTION : 34 271 Contnbutions in Aid of Construction .... k 35 Total Cabilities and Cther Credits. .. $43.362.059.33 S42,094.039.59 , (1.26'3,019. 74) i ! State below if any earnings of the municipal lighting plant have been used for any purpose other thar. discharging indebted-l \ ness of the plant. the purpose for which used and the amount thereof. f 1977 Transfer ed to City for Tax Reduction $ 1,043,423 f Since 193 Trsusferred to City for Tac Reduction 13,216,099 ' Since 1934 Faid Directly for Veterans' Pensions 656,131 r I ( . v l T
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SI 8.17-17
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e . 12 AnnW report of... . . . ..T. .a. .u. n. .t.o. .n. . .M..u..ni. .c. .i.E.a.
.. .l......L. .i. .gh..t in..g P..la.n.t. .. . .
... ...... . ..Ye.t ended Deceeviber 31.197.',. e STATE 3f ENT OF INCO5f F. FOR TIIE YEAR 1
Tctel
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Increase er Linet Account (Decrease) from No. Current Year Precefbrut Year (a) (b) M I OPERATING INC051E 2 100 Operating itennues (P. 37 and 43) . ..
$21,193,575.85 $1,345,311.04
.I Operating Expenses: ' ' " - ~ ~ - ~ ~ ~
i , .tul Operation Expense (P.42 and 47). . ... . .. 14,882,371.91 298,873.27
- 7. I 402 Staintenance Expense (P. 42 and 47) . .
1,693,863.45 814,684.41 ti 103 Depreciation Expense. . .. 1,436,919.52 69,494.45 7 407 Amortization of Property Losses. . . .. , 8 9 408 Taxes (P. 49). . ... . 10 Tota! Operating Expenses. . . -181-013il'34. So -1 TiS3T052d3 - tt Operating Income. . . . W 80',4Zu.y/ --~I62';258791-12 418 Other Utility Operating Income (P. 50). .
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1:1 14 Total Operating Income. . . 3,IMO,4Z0.9/ 162,256.91 -
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OTHER INC05fE ~ lG ' 415 Income from 51erchandising. Jobbing and Centract Work (P. 51)
!! 419 Interest Income. . . .. . .. .
7,201.05 (68,135.45) Id 4213!iscellaneous Nonoperating Income. . .. .. . 19 Total Other Income. . . . . .. . 7,201.U3 (65,173 45)~ ~ 20 Total Incorne. 2t
. . . . . 3,167,022.UZ 94il2%46- -
StISCELLANEOUS INCO3tE DEDUCTIONS s 22 ; 42.*> Miscellaneous Amortir.ation.
$t ; 42G Other Income Deduction.s . . . .
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2I i Total Inco ne Deductions. . .. .
- 27. I Inerm:e Before Interest Charges. ~3~187,~6222 2 "~
. ... 94,123;46 26 INTEREST CHARCES ~~~ ~ ~- -
- 'T 427 Interest on Bonds and Notes. . . .
1,915,229.37 (217,340.92) 2a ; 423 Amortization of Debt Disecunt and Expense.. 0: ' 42tt Amortization of Premium on Debt - Credit. . 3,344.66 (261.16) 30 ; 431 Other Interest Expense. . . .. .. . 6,092.50 2,714.49 31 i 432 Interest Charred to Construction -Credit. . . 170,664.80
- 12 - Total Interest Charges. .. . .
1,317,377 11 Er4T 222r79)--
- .. NET INCOh!E. W 269,644.31 0 20,346d5- --
EARNED SURPLUS Line , Debats Na- (3J Crecsts (b) gc3 34 208 Unspproprinteri Earned Surplus (at beginning of period). $ $ 6,399,032.61 J5 3'i
'T 433 B4!ance Transferred from Incorr.e. . . . 1 69 ' 644 *'8*
- tai Mi.seellaneous Credits to Sarplus (P. 21). .. . 3,990.00 au 4.t'. Iti*Mlaneous Debits to Surp'us (P. 21). 1,916,694.18 to : 106 Appropriations o* Sarplus (P. 21). .. . .
41 i 437 Surplus Applied to Dc;teciation.. ... 1,903.52
,2 ! 20s Una:propriated Earned Surplus (at end of period). ..
5,754,069.72 j vorAts ,$ 7,672,667.42 S~T677,567. 42 8.17-18
13 Annual resort of........ ...... .. 23*dQ3.1hnicip 33..L10htin'.(.21 ARE... ................. Year ended December 31.197.7. STATU!ENT OF INCOME FOR THE YEAR Electric Gas ( Increase or incree,e or (Decrease from (Decrea s e) from Current Yeer Preceding Year Current Year Preceding Year une (d) (e) (O (g) No. 1
$21,193,575.35 $1,345,311.04 2 3
14,882,371.91 293,373.27 4 1,693,863.45 814,684.41 5 1,436,919.52 69,494.45 S 7 8 0 18.013.154.38 1.183.052.13 10 3.130.420.97 162.258.91 11 12 13 3.130.420.97 162.253.91 14 15 7,201.05 (6fl,135.45) 18 17 18 7,201.05 (63,135.45) 19 3,137,622.02 94.123.46 20 22 m
=
*3 24 3,187,622.02 94,123.46 05 s
1,915,229.37 (217,340.92) 37 OS 3,344.66 (261.16) :o 6,092.50 2,714.49 30 170,664.80 31 1,917,977.21 (44,222.79) { 3 y 1,259,owa.61 5 133,346.25 1 33 r ( M 8.17-19
14 Annual report of... .........T.9.95I.U.9.U..kh.U.I S7 I .9. ..NEN)$kM..M@'15.... .... .. .. ............Yeer onded December 31.19.7.7 CASH BALANCES AT END OF YEAR (Account 131) N Une items Arnount No. (e) (b) 1 Op-ration Fund. . . . . . . . . . .... . .. . . ... . . . . . $1,757,029.77 2 Interest Fund. . .. . .. . . .. . . .. .. . 8,276.82 _ 3 Bond Fund. . ... ..... . .. .. . . . . . . . . .. . 4 Construction Fund. . . . . . .. .. . .. . .. . . .. .. 5 Custo::er Deposit Fund 153,667.15 6 Petty Cash Fund 1,200.00 7 8 9 10 11 12 yorat S1,920.173.74 MATERIALS AND SUPPLIES (Accounto 151-159.163) Summary Per Balance Sheet Amount End of Year tine AC'8""' Doctric Ces No. (e) (b) (c) 13 Fuel ( Account 151) (See Schedule, Page 25). . .. . . .. . . . .. $1,469,867.49 14 Fuel Stock Expenses (Account 152). ... . .. . . ... .. . . 15 Residuals (A: count 153). . . . .. .. .. . .. . . .. . 16 Plant .staterials and Operating Supplies (Account 154). .. .. 446,145.78 \ 17 5!erchandise ( Account 155). ... . . . . . ... . .. 18 Other !!ateria!s and Supplies (Account 156). . . . . .. 19 Nuclear Fuel Assembiles and Componenta - In Reactor ( Acccunt 157). . . 20 Nue! ear Fuel Assemblies and Components - Stock Account (Account 153) 21 Nuclear Byproduct Lteria:s (Account 153). . . . .. 22 Stores Expense (Account 163). .. .. .. .. . .. . .. . 23 Total Per Balance Sheet 3. . .. $1,916.013.27 DEPRECIATION FUND ACCOUNT (Account 136) Line Amount No. (a) (b) 24 DEBITS 25 Batance of account at beginning of year.. . . . . . .. . ........ . . ......... $ 482,069.07 26 Income during year from balance on deposit. . . . .. . .. . . .. .. . . 0 27 A=ount transfe. red from (ccome. . .. . ... . .. . . .... . . .. ~1,436,919.52 23 23 1,913,983.59 TorAL 30 CREDITS 31 Amount expended for const: action purposes (Sec. 57. C.134 of G.I ). .. . .... 1,89'3,910.99 -. 32 Amounts expended for renewsis, viz.:- 33 34 35 36 37 38 33 . Balance on hand at end of year. . . .. . ... . ..... ..... .......... ... . . .. . . 25,077.60 40 Tovat S1,918,933.59 8.17-20 SL
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tTI'II ITY PL5NT--l{l.lfrillC $ e
- l. Itci=>rt talow ti.e items of utility plant in service ceding year. Such items should be included in column efect of such amounts. ;
accarellr.g to prescriled accounts (c). 4. fleclaasincations or transfers within utility plant 3
- 2. Ilo not include as a.ljuutments. corrections of 3. Credit adjustments of plant accounts should accounts should be shown in column (f). j additions and retirements for the current er the pre- be encloscJ in parenthews to indicate the negativo .
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Delance ; ti.glaning AJjustm.nts Delance 1 in. Accoue.t et Year . AdJations . D.precletion . Other CreJ6ts Transf.s s EnJ of Year . }.3 (.) (td N) (0 (s) ra . (4 (4 , {i1 S I 1. IllTANGillt.E Pl.AllT $
$ 5 5 5 8
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- ;I 8 M 4 W '
s 2.1*ltolklJCTION FI. ANT
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p 4 G A. Stcain l'roduction g 7 3101.an.1 and I.and Itigt.ts. 238,009.14 E! g .. . 238,009.14 f 311 Structures and Innprovements. 3,743,953.11 d g 8 . 3,869,449.22 40,337.03 165,833.14 < 7 s 3:2 I er I'lant Equipment. . . 9,871,077.00 356,917.81 399,239.03 9,828,755.7S N i
.y 10 313 ) gines an.1 Engine Driven , ,
g j Generators. . .. i { 11 311 Turbogenerator 11 nits. . . ..... 9,166,450.94 176,666.53 363,858.81 8,979.258.66 U ! 3 s Acnury Eter-isic Eqmement. 33,469.21 74,093.62 1,277',364.33 l I is 1,317,988.74 : 13 316 Eliscttlaneous Power I'lant t 14 reipment. . . .. 120;807;05- - 16 7535;98- 4 7673;33- 132;669.7& ! is cot.l steam Production Plant. - 24 583;-782209 7 - -623;926:56- 13 007;697;93- 247200;010;72- : 16 II. Nuclear Pru luction Plunt j I'l 320 I.and and I.and Itiglits.. . . . . t 18 321 Structures and Improvements. ... { 19 322 Itcactor Plant Equipment. . . . .... . 20 x!3 Turbogenerator Units. . . . .. . . ;
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g 21 3;:8 Accessory Electric l'.quipment. .. . 22 325 htheellaneous Pour Plant t. Equipm.:nt. . g i l 23 Total Nucle r Pro.luction Plant O 1 Ia 2 b U
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i i5 UTILITY PLANT-ELECTRIC (Continued) 3 Uslance
- Lin. Accov%t Beginning of Year AdJitions Deprecletion Other Credits Adjustrnents Transfers Usfence End of Year f2 No. (.) (L) (c) (d) (e) (f) (g) 1 C. IfyJraulie Production Plant $ $ $ $ $ $ 4 2 330 land and I4cd Itights. . . . . . . . . g 3 331 Stsuctures and Improvements.... -
4 332 Reservoirs, Dama and Waterways h
- 5 333 Water Wheels, Turbines and . i.
Generators . . . . . . . .. ..... !), 6 331 Acceswry Electric Equipment.... $ 7 3351fiscellaneous Power Plsnt !,{ Equipment. . . . . . . . . . . .. .. y 8 336 Ro Js, Railroads and Br:dges.... , , ti. 9 TotiJ IIydraulle Production Plant $ 10 D. Other Production Pinut $ 11 310 land and I.nnd Rfghts..... ... - ~ 12 341 Structures and Iraprovanents.... . . ? 13 312 Fuel IIolders, Productra and [
,CD Accessorios. . ... . . . ... 487,767.51 8,377.72 15,107.06 481,038.17 g
[ 14 3 83 Prime Afovers. . . . . . . . . ... . A, 15 314 Generators. . . . . . . . . . . . . . . . 77,712.47 2,348.78 .2,407.74 77,653.51 i N 16 315 Accuiory Electric Equipruent.. . 377,577.96 10,232.45 11,697.49 376,112.92 : 17 316 Alisoellaneous Power Plant i Equipment . . . . .... i 18 Total Other Pruduction Plant.. ~ 041,052.96 9n,'153.95 ?o,212.20 934,804.60-. j IS Total Production Plant. . .... - _25,526,840.03 644,885.51 __ 1,036,910.22 '15,136,815.31. !. 20 3. TitANSht!SSION PLANT i 21 350 I.and and Land Rights. . . . .. .. 207,797.64 1,125.00 208,922.64 ! 22 351 Clcaring Iand and Rights of Way 16,325.85 4,706.09 21,031.94 : 23 352 Structures and Irnprovements.... 55,265.94 55,265.94 's 24 353 Station Equipment. . . . . . ... 868,448.30 746,918.71 26,912.44 1,588,454.57 25 351 Towers and 1%tures. . . . . . . 771,279.99 34,996.20 23,881.81 782,394.38 228,708.26 [ 26 355 Poles and Fixtures. .... ...... 131,375.93 101,397.21 4,064.93 g 27 356 Overhead Conductors and Devicce 129,056.13 37,404.41 3,995.33 162,465.21 } 28 357 Underground Conduit. . . . . 2,440.24 2,440.24 & 29 358 Underground Conductors and [ n.vues. . . . . ... . . . 30 359 Itoads and Trails. . . . :* g 31 Total Transmission Plant... .. 2.124.283.89 984.253.80 58.854.51 3.049.68L18 M 1 . Q .
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LTill.ITY Pt. ANT-l'I.ECTitfC (Continued) o.t_. t D.glanlng Adjustrn.nts U.S."ec. . tin. Account of V.ar AJJitions D.g,s .cl.tlon Oth. Cs.dits l e.nsf.s s gnd of '..e 3 HO. (.) (.) (g) I 4. DISTitinUTron PLANT (ts) (c) (J) (r)
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3 : : 2 sco land and fand Hights. . . .. . 29,877.47 15,255.00 3 act structures and improvements. .. 45,132.47 i 11,036.98 36.00 203.33 10,869.65 4 3G2 Station Laufpment. . . . . 580,780.19 $ 47,848.98 59 674.66 592,605.67 ci + 5 sc3 storare llatt(ry Daufpment. .. c sc4 Poh-s. Towers and l.htures. . . . . . 421,362.96 50,415.51 50,387.39 d 7 421,391.08 y scs Ovuhead conductors and Devias 835,046.62 78,951.99 43,599.94 8 acc tinderground conduit. 870,398.67 p
. 641,323.99 480.68 40,470.98 601,333.69 gj D 367 Underground Con.luctors & I)evices 782,605.57 52,983.40 42,693.74 792,895.23 g 10 36a IJne Transformers. . .. 438,656.00 37,676.ft6 30,487.47 445,645.39 !? !
Il ac9 serthes. 184,603.14 13,077.ri? 7,057.29 190,623.52 t-* 12 370 Efeters. . .. 358,681.99 22,411.23 25,909.86 355,183.36 13 371 Installations on Cust's Premixa. [ 14 3721 ras,1 Prop. on Cufa Premixs.. p y 15 373 street IJehtine and signal systems 300,542,29 - 15,-756s43-d 25r768-. 42- 3107554.28-- g g IG Total Distribution Plant. . .. -4,-584 r317. 20- 356r731v22- - 3043415.41- -4;636i633;0L- ;, 17 s. Gern:ltAI, PLANT la U 389 tan.1 and land stights. 35,.*90.00 35,690.fl0 $ is 390 structures and improvements. . 73,7t.5.02 1,056.00 2,791.35 72,029.67 i 20 3910 fice Ferniture an.) Di ulpment.. 41,919.23 13,309.45 2,457.45 52,771.23 t
- 392 Tr.insportation Deufpenent. . . . 130,108.U6 47,383.45 28,163.85 . 149,328.46 .
22 393 Stores Dguipment. 78.67 3.37 75.13 ; 23 39 Tools. shop arid G.irage L iniement 803.26 406.50 . 396.76 t 24 395 f.sboratory Di uirinent. 9,382.46 40.50 742.35 i
. 8,680.61 25 396 Power Operated Di uipment., 7,196.93 26 726.92 , . 6,470.01 :
397 communication I:,iuipment. 21,536.76 29,259.42 1,080.79 49,715.39 ; 27 393 Eliscellancuus Dauipment.. 1,099.23 748.00 23 '.99 Other Tangil,le Property. . 366.00 1,480.43 [ r2 29 Total ccncrat Plant.. . .. 321,581422 - 917796;82- 36g739.38- 376 3 638;66 - 30 Total Elutric Plant in service. . -32,557,022.34- -2,077,667.35- -1,436,919.52- -337197i770;17-- l; 31 los Utility Plant fenwd to Others.. 32 105 Property lleid for Future Use. . *h 33 31 I 107 Construction work in Progress. Total Utility Plant Electric.
- 2,236,798.95 - -1,286,550.16--
34.793,821.29 3.364,217.51 1.436,91L52 (g23 085;613;62) - 174377735;49 - (2,0.85,613.62) _34,635,505.66 ( N ~1
PRODUCTION FilEL AND O!!. STOCKS (included in Account 151) k (Except Nuclear hlaterials) I. Iteport below the information called for concerning production fuel and oil stocks.
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- 2. Show quantities in tons of 2.000 lbs., gal., or hicf., whichever unit of quantity is applicable. -
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- 3. Each kind of coaf or oil should be shown separately. *.
- 4. Shou gas and (kctric fuels separately by specific use. 3 Kinds of Fu.I and Ott -
tl one It. n Total Cost nhls.- M il Quanhty Cost
%1s.-D-.
Quanuty Oil Cost h rio. (a; (b) (c) , .(d) (.) (f) h; 1 On IIand Beginning of Year... . 8 1,274,506.07 104,'093.50 8 1,270,653.70 252.38 8 3,852.37 2 Received During Year. . 7;368,111.I') la24,613.1[L 5,8fi6,23Idl. 93,445.90 1,1Ql,913.72. n3 3 TOTA L . . . . . . . . . . R,642,717.2fL 528,706.6fL 7.136,a21J2. 93JiE20 1,1q1,026.0_3_ p 4 Used During Year (Note A). .. ,, p 5 Boiler 011 5,674,280.08 420,544.51 5,674,280.08 H. 6 Cas Turbine 1,498,569.69 , 93,257.80 1,498,569.69 j 7
- h 8 . I3 8 6 to rts r*
-" 11 Sold or Transferred. . . . . U y 12 TOTAL DISPOSED OF. .
7,172,849'J7- ':20,'544.51- 5,674,280.08- 93,257.80 1,498,569.69- :* g 13 DALANCE END OF YEAR. . 1,469,867.49 108,162.17 1,462,611.09 440.48 7,256.40 Kinds of Fuel and Oil - Continued , LIn2 II.en , Duantity Cost Quantity Cost ! teo. (g) (h) (1) (D (k) { j 14 On lland Deginning of Year. . . . . .. . ... .:. . $ $ . l 15 Iteceived During Year. . . . . . . .. . . .. .... . i l 16 TOTAL. .... .. . . ( 17 Used Du.ing Year (Note A). . . .... ... . .... .. ( l 18 . I is
- i 20 E 21 2 22 23 h 24 Sold or Transferred. . . . . .
25 TOTAL DISPOSED OF . . . . . 23 DALANCE END OF YEAlt. . . . . . . I ~ Note A -Indicate specifie purpose for which used. e g., Doiler Oil, h1ake Oil. Generator Fuel, etc. . ( ._.- /
21 [ Annu t recort or......T.*.U: - d .. . .. . ... . . . . .. . . ... . .Ye er ead +o D ec em b er31. 19.2 7 T1..!!!P. IICI"" .LIGCI:' .2L.CC.. 3115CELLWEOUS NONOPERATING INCO31E (Account 421) r
, . _ Une item Amount No. (a) (b) 2
( 2 ; 3 t 4 C 3 -- TOTAL 9 L OTHER INCO3f E DEDUCTIONS (Account 426) Une item Amount : No. (a) (b) ! 7 ' 8 9 ;
/ 10 (
f 11 12 , 13 g TOTAL MISCELL.WEOUS CREDITS TO SURPLUS (Account 434) une item Amount No. (a) (b) !
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15 is Cain on disposal of Plant assets $ 3,990.00 r 17
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13 13 20 i 21 22 N ^' 3,990.00 23 S Sf!SCELL.WEOUS DEBITS TO SURPLUS (Account 435) [ Une Iter Amount No. (a? (b) ( 24 To City for reduction of taxes $ 1,354,252,00 25 Bonds ' 445,0C0.00 ' 26 Adjust =ent for prior year billing 117,442.18 >
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30 , 31 . 3., TOTAL
.. j e , n c ces 3 a APPROPRIATIONS OF SURPLUS (Account 436) l Une' ttom Amouct O No. 4
! (e) (b)
( 1 33 34 35 . 36 I 37 . 33 , 33 , TOTAL , 9 M 8.17-25 o ;
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22 A no.. ,.oo,t oe....TAV.t.R9H.imClPAI.,MQHTR@,,P,MjjT, , , ,,,,,, ,,,,,,, , ,,, ,,, , , y,,, oo,, o,c...., a t , n , , 7 7 MUNICIPAL REVENUES (Accounts 432,444) (K.W.H. sold under the provisions of Chapter 269, Acts of 1927) No. No. Ces schedur. (a) cubic Feet (b) R.v.nv. R.c.sved (c) f .* (0 1 482 0 3 4 TOTALS o.cw. sch .. it.w.u. .,...no. R ece ..'
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(a) (b) ft) #E?d) (d) 5 444 Municipal: (Other than Street Lighting) 6 City of Taunton Buildings 1,865,953 118,942.17 6.3743 7 City of Taunton Power 19,627,440 7;.7,249.05 3.7053 8 9 10 11 gg TOTALS 21,493,393 646,19 C T 3.9370 13 Street Lighting: 14 City of Taunton 15 5,065,929 172,695.00 3.4090 16 17 18 70 Tats 5,065,9 9 172,695.00 3 7 0915 19 * * 26.559.322 1.018.886.22 3.8363 - i PURCHASED POWER (Account 555) Nar.s.s of Utitsti.s Wher and at What u. No. L*."'3Mnc,ila *"'""*"'"* * * "- ^"*""'
.WH.'
(a) (b) 8%2d) (c) (d) (e) 20 !ontaup Electric Co Eu!*Eral d Il5KV 51,617,052 1,454,823.97 2.8185 21 !!aine Yankee 22 Atomic Power Co " " " 27,379,069 350,426.45 1.2799 23 '/cr=ent Yankee 24 " " I!uclear Power Co " 16,280,382 281,325.91 25 Ver=ent Electric 1.7280 28 Power Co " " " 27 33,731,500 582,942.46 1.7282 New ^"~ngland 2s n a 123,989,000 __3,113,3.8.5.79 g3 Power Exchange n 2.5110
. -l TOTALS . .
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SALES FOR RESALE (Account 447) N. .. t um.. wne... .t wn.t ,"l;=,:. g,, to Wngigrge voitag. o.Hured K.W.H. Amount ers i No. (*) (b) (c) (4) ! - (e) t 30 3 2aynham & Taunton Brockton Edison Co Batmdary 4160V 44,209 2,537.29 5.7393 33 Cleary Flood Montaup Electric Co Bus Yard 115 V 140,961,163 34 Ncv England 6,216,954.01 4.4104
" " i Power Exchange "
13,663,300 '.08,309.76 2.9884 37 - 33 39 ** 154.668.672 6.627.801.06 4.2352 8.17-25
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v 3 LI.LCTitlC Ol'ERATING HEVENtlES (Account 400) I. Iteport below the ammmt of optrating revenue for added for billing purposes, one customer shall lee counted 4. Unmetered sales should be inclu. led below. The 3 the year for each pre cribed account and the amount of for each group of meters su added. The average number details of such sales shout l be given in 2 footnote. 1 im rease or decreou over the preceding year. of customers means the average of the 12 figures at the 5. CimiGcation of Commercial and Industrial Sala. o,
- 2. If increaws and d..creaws are not derived from close of each month. If the customer count in the resi. Account 442, according to Small (or Commercial) and th 4_
presioudy reported figures raplain any inconsistencies. dential service classincation indudes customers g cotmted I'"j*gk'[g),nd rnaf t4Qy
,acth $ "lQnd nt Ih E
- 3. Number of customsrs shouhl be reported on the more than once because c.f speci.d services. such as water baals of classine tion is not greater than 1000 Kw of
*g basis c number of eneters. plus nums er of flat rate heating, etc., indicate in a footnote the number of such demand. See Account 462 of the Uniform System of 'c.,
accounts, except that where separate meter readings are duplicate customers luctuded in the clas:.ification. Accounts. Esplain basis of classiGcation. 7 Operating fievenues Average fiumber of . Iulowatt-hours Sold H
. . l. . customers per Montti Q
fncrease of Amount for (Decrea se) fe um Amount for Increase or (Decrease) from Hushber for lacrease or h Line Account Year Preceding Year (Decrease) from r' Year Preceding Year Yeer Preceding Year ,y ru. (a) (ta (c) , , . d)
< , .ce). . . (f) (v) b q
S AI.ES OF EI.ECTitICITY $ 3 2 440 Iteshtential Sales. N . 4:2 Cornmercial and Industilal S. des; 5,946,126e06 476,766e84 111,867,903 2,142,911 18,545 641 5
.C' 3 y 4 small (or Commercial) see instr. 5. .
2,881,366e90 136,256,52 51,026,925 (914,867 ) 2,154 19 l-s d m 5 1.arge (or Industrial) see instr. 5. . . . . is t 3runicipal Sales (I'. 22) . 4,676,432e40 768,835e42 109,347,100 6,I98,820 105 D 6 . . .. 1,018,886e22 68,013e76 26,559,322 594,171 106 3 i f : 85 other s des to l'ublic Authoritles. . . 30,030e10 1,351e20 385,295 21,668 3 8 116 Sales to Itailroa.!s and Itailways. . . l* 3 183 Inte rdepart mental Sales. . . . .. 10 I19 ilisw!!aneous Elect:ic Sales. . ... I 11 Toial s les to vithnate consurners.... 552 841.68 1 451 223.74 547 8 542 703 20,913 663 ! 12 187 sales for Itesale. . 14l627l801e06-6 d250!410;27) 154j668 299 186l672- -(89,'569j l-10) 3 i Toi.d sales of Electricity *. -- - 21,180,642 v74- -1,200,313e47 453,855,219 13 . . (81 026 !02) 0,916 ^63_ : 14 OTilElt 01' Ell ATING ItEVENUES 147 Testpoweradjustmentln1676 i 15 450 Forfelica Di counts. . .. 21,180,642e74 1,348,,895e00 708e47 ; 16 45I 3tiscellaneous service Itevenues. .. 5. All customers metered at primary voltage are . 17 453 sales ef Water and Water t'ower. . . . . considered as industrial saics e ' 458 Itent from Electric l'roperty. 13 . . . .
)
19 455 Interdepar: mental Itents. E 20 454 other Etectric staenues. & 12,933 ell (3,397.4 > p 21 a 22 I
'e' 23 '
i
~
28 Tc:.it Od.er Operating nesenues. 25 2a , 12p3W- @9@ t
'E y
nut cu:rie opirasing nesenun.. 21,.193,575eD5_'_le3!t5,31 Led ig aln lu.id roerme4 from application of fuel clauws s 520,628e84 Credlt. Total Kwit to which applied.. 292,760,697.
33
. -., ,.o.,t ... . . . .:.m=.mm C:2.u. . tm= . a u=.. . . .. . . . . . . . .. . . . . .. . . . . .,e., end ed o.c ,e, , , . , , n SALES OF ELECTRICITY TO ULTISt ATE CONSUSf ERS
!!eport by necount the K.W.H. sold, the amount derived and the number of customers under each filed schnlu!e s or contract. af unicipal sa!es, contract sales and unbilled sales may be reported separately in tots!.
*8* Number 'o, Cu stormers
* " , *g,
, (Per 8l tis Render.d)
(cents) Line Account Sched # K.W.H. Revenue (0.000C) July 31. Dec.mber 31. No. No. (a) (b) (c) (d) (e) (O 440 fos.Ucutidl "A" 62,622,844 3,713,112.55 5.9293 13,698 14,299 2 440 pesidential "A-1" 33,812,356 1,614,856.86 4.7759 3,916 3,990 3 440 Resi Acntial "A-2" 15,432,705 618,156.65 4.0055 761 809 4 442 oc=ercial "P." 20,089,787 1,288,387.46 6,4131 1,617 1,628 5 442 cencrcial " CAD-17 8,922,749 318,547.47 3.5701 11 11 6 442 c=ercial "P .17 18,730,614 1,075,448.62 Se7417 202 209 7 442 ,cerercial "HP-17 151,058 7,367.01 4.8769 40 37 8 442 Cocnercial "GS-li' 2,113,882 95,993.01 4,5414. 47 50 9 442 Cecrercial Private 10 area lighting 1,018,835 95,623.33 9.3356 241 243 11 442 Industrial "P-2" 109,347,100 4,676,432.40 4.2767 105 106 12 City of Taunton . 13 444 "GS-l! " 74,272 3,380.10 4.5509 3 3 14 444 "H" 1,028,533 67,915.05 6.6031 78 76 15 444 "P-1 " 763,142 47,647.02 6.2435 19 19 16 444 "M-it ' 15,255,64C 566,901.39 3.7160 5 5 1~ 444 "P-2" 4,371,80C 160,347.66 3.6678 6 6 18 444 Street Lighting 5,065,925 172,695.10 3.4090 1 1 19
' ~
20' 445 Flat Rate B' 12,7b 1,054.35 8.2923 1 1 / 21 445 Flat Rate R 253,894- 21,265.24 8.3756 1 1 /, O 445 Flat Rata ND 118,68- 7,710.51 6.4965 1 1 03 24 25
- s .. ..
27 23 29 30 31 32 33 31 35 36 37 33 09 40 41 40 43 44 45 , 46 47 , i 48 49 TOTAL SALES TO ULTI3 TATE , , _ _ _ _ _ _ _ CONSU3fERS (Page 37 line 11) 299,186,54714,552,841.68 4.8641 20,75: 21,495 l 8.17-28 -
39 Annual report of....Q'MQy.{.CylC17AL.LICHTIMG.7. M .... . . .. .. . . ... .. . . . . . . . .. Yea r ended D ec em ber31.19.2 7
) ELECTRIC OPERATION AND MAINTENANCE EXPENSES
(~ 1. Ehter in the space provided the operation and mr.intensnee expenses for the year.
- 2. If the increases and deeresses are not derived from previously reported figures explain in footnote.
r increese or Accoune Amount for Yeer I g, p,',*',*S*,$',*[,' No. (a) (b) (c) 1 POWER PRODUCTION EXPENSES 3 3 , 2 STEASI POWER GENERATION l 3 Operstion: 4 500 Operation supervision and engineering. . . . .......... . - 236,990.74 (26,059.07) 5 501 Fuel. . . . . .... . . .. ... . . .. . .- 7,133,579.77 (2,160,386.56) s g 502 Steam expenses. . .... . . . ... . .. 737,222.60 (17,2Sle42) 7 503 Steam from other sources. . . . .. . . .. . s 504 Steam transferred -Cr.. .... . . . . .... . (797,309.85: 451,017.13 9 503 Cee.rie expenses.. . . . .. . . .. . . 10 506 Miscellaneous steam power expenses. . . . . . .. . 11, 507 Rer.ts. . ,. . . . . .. . 12 Total operation. . . 13 Maintensnee:
. . .. . r
- s. n c ene 44
' i' h'~' n, m og 14 510 Maintenance supervision and engineering. . ...... ... 1,301,430.49 787,069.51 13 511 Maintenanes of structures. . . . .. ... . .. .
16 512 Maintenance cf boiler ;! ant. .. ... .. . ... 17 513 Maintenance of electric plant. ... . .. . ... . _ 18 514 Maintensnee of misceDanecus steam plant. . . .... . . (, 13 Total msintenance. . . ....... .. 1.301.430.49 787.069.51 ! 20 ' Total power production expenses -steam power. . . 3.726.913.75 ( .55.610.4Q 21 NUCI. EAR POWER GENERATION 22 Operation: 23 517 Operation supervision and engineering. . . . . .. .. 24 SIS Fuel. .. . . . . . .. . . .. . .. . . 23 513 Coolants and water... ~ 05' 520 Steam ex;enses. . . . . . .... .. . . ...... 27 521 Steam from other sources. .. ...... . . . .. 23 522 Steam transferred - Cr.. . . . . . .. . ......... ..... . 29 523 Electrie expenses. . . .. . . . ...... .... .... ... . .. 30 526 Miscellaneous nuclear power expenses. . . . .. . l 31 525 Rents. . .. ..... . ......... . . ... . .. L 32 Total ope stion. . . . ... ........ ... .. .. 33 Maintenance: 34 523 M:intensnee supervision and ent.neering..... .. . . .. 35 529 Maintenanes of structures. . .. .. . .. .. ... . ,
, 36 ' 530 Maintensnee of reacter piant equipment. ... . . .
37 531 Maintenance of e!ect-!c plant.. ..... . . .. .... 33 532 Maintenance of misce!!aneous nue!aar p!2nt .. . . ..
,, 33 Total maintenance. . .. ..... .. . ..
40 Total gewer pt: duction expenses-nuclear power. . . 41 - HYDRAULIC' PO'VER GENERATION 42 0:eration: 43 533 Operation superdsion and enginee ing.. ... .. .. 44 53S Water for power.. . . . . . . . .. . .. ... ... ( 45 537 Hydraulic expenses. . . .... . . .. .. ... .. .. L 45 535 E:ectrie expar ses . . . . . . . . . . . . . . . . . . . . . .... . 47 530 Miscellaneous hydraulie power generation expenses. .... 4$ 5:0 Renta... . ... , .. .... .. ... .. .. . 45 Tota! crerstion. . . l l 3.17-29 ' t
40 4 Annues report of.. .. p,ggg. gap,g..ge.g..,3..pg.g.......... . . . . ...........v..r no.oc.c.me r33.19 77 ELECTRIC OPERATION AND SfAINTENANCE EXPENSES-Continued % Incr.as, or Account Amount for Ye.r (U'*'l,* p, c ,, * *I I,] No. (a) (b) (c) 1 ItYDRAULIC POWER GENERATION -Continued 3 3 2 1!aiatenance: 3 541 Alaintenance supervision and engineering. .... .. 4 542 hlaintenance of structures. . . . .. . 5 543 51aintenance of reservoirs, dams and waterways.. .... . ... 6 544 h!aintenance of electric plant. .... ... . ... .. 7 , 545 5taintenance of mheellaneous hydrau!Ic plant. .. 8 Total maintenance. . ........... . . . . _ _9. 'f'oul power production expenses - hyd.aulic power. . 10 OTIIER POWER GENERATION 11 Operation: 13 546 Operation supervision and engineering. . . . . . . . .... 13 547 Fuel. . . . . . . . . ... .. 14 543 Generation expenses.,. . . . .s . ..<.. .. . . . 15 , 549 h!!scellaneous other power generation expenses. . . . 16 550 Rents. . ' 17 Total operation. . . . . . . .. .... .. 18 A!aintenance: 19 551 Af aintenance supervision and engineering. . .... .. . - 20 55211aintenance of structures. . . . . . i ' 21 553 hiaintenance of generating and electric plant. . . . . . . . . 22 554 51aintenance of miscellaneous other power generation plant. 23 Total maintenance. .. .. . . . 24 Total power production expenses- other power. . . . 25 OT1!ER POWER SUPPLY EXPENSES 26 555 Purchased power., . .. ....... . 27 556 System control and load dispatching. .. . . . ... .... . 5,732,904.53 1,912,409.04 28 557 Other expenses.. .. . . .. .. . . gp em 99 I 2J Total other power supply expenses. . . . . .. _ r1,yty , f 30 Total power prodection expenser. .
,u.. .
..- en. ,
, n.,,,9 , a, 31
_g yo g a: eqe'gg7_fy TRANShilSSION EXPENSES 32 Operation: I 33 560 Operation supervision and engineering. . . . . . . . . 34 561 Load dispatching.. . 4,6S3.56 4,683.56 35 562 Station expenses. . . . . .. .. .. 411.05 411.05 36 SG3 Overhead line expenses. . . . 37 564 Underground line expenses. . ... . . 33 565 Transmission of electricity by others. . . . 39 565 5tiscellaneous transmission expenses. . . . 40 567 Rents. . . 7A.tos_?q g_ a7g _9 t 4: 42 Tytal operation. . 5!atntenance: g g'g g'{g 4a .ws staintenance supervision and engineering.
) Staintenance of structures.
15,136.62 15,136.62
.s
? 44 5C' e
45 TJO 5taintenance cf station equipment. . . . .. .. .. 46 I 571 Staintenance of overhead lines. . . . . .. . . . 47 .'J2 hiaintenance of underground lines. . . . .. . . . . J 43 573 I!aintcnance of rniscellaneous transmission plant. . . . 49 . Total maintenance. ...... r,0 , 15_116_A? 19_11A_A? Total transmission expenses. '
.=[,, -a[, .re.
n 4 , im . , e, e
., 8.17-30 I
41 Annu.s reperi ot.... ..'.'CCC:1. GTI.CI2AL. LT.C'c.""I2:G.2U.!T2.. . . ..... ... . .... .... ..v..r .no.o c.c.meer31. 19.. 7 7 ___ ELECTRIC OPERATION AND MAINTENANCE EXPENSES -Continued / t ener..s. or g, Account Amount for ve.r ,/y ( too. (a) (e) (c) 1l DISTRIBUTION EXPENSES $ $ 2 Operation: 3 580 Operation supervision and engineering. ... . 71,189,97 11,919.31
- 4. 531 Iead dispatching. . ... . . . ... . . .. .. 159,111.06 3,877.36 5 582 Station expenses. . ,.. . . . ... . 34,148.94 8.310.73
- 6. 583 Overhead line expenses.- . . .. .
7 584 Undergroundline expenses.. ..... .. . .. .. ... 8 585 Street lighting and signal system expenses. . . . . . .. 2,299.43 (3,571.99 9 586 afeter expenses. ........ . . . ... . .... . 47,474.43 (~,399.75 10 5s7 Customer insta:!ations expenses. . . . . . . . . . . .. . ... (83.20 11 sss Liisceuaceous distribution expenses... . . ... .. ...... 62,2.4.00 2,534.33 12 559 Rents. . . ...... ....... ..... .. . . . ... 13 Tor 1 operation. . . . ... . .. 176.507_01 1 A: A 7_ ? O 14 5faintenance: 15 59011aintenance superdsion and engineering. . . 9,974,33
*9,974.53 16 5915f aintenance of structures. . . .. . ..
17 592 Maintenance ci station equipment. . .. . . ... . . 18 593 31aintenance of overhead Unes. ... . .. ... ..... ... .. 234,337.26 (4,091.03) IS 59411aintenance of underground lines. . . . .... . .. .. 20 595 Staintenance of Iir.e transformers...... . . .. ... .... 218.26 (1,540.76? 21 . 596 3faintenance of street Ughting and signal systems. ...... . 23,177.63 9,964.35 22 597 ataintenance of meters. . .. . .... . .. 10,934.75 2,632.62
^
23' 538 5f aintenance of miscellaneous distribution plant. .. . . 59.90 59.90_ 24- Total maintenance. . . . f . .. . ... . .. 3 M ,702. 5.L 17 44L M 25 Total distribution es'penses. . ... 705.210.36 26 35953bS5 CUSTOMER ' ACCOUNTS EXPENSES ' 27- Operation: 23- 901 Supenision. .. . .. . .. . . . .. 29- 902 Lieter reading expenses. . . . . . 79,634.07 9,671.81 30 903 Customer records and collection expenses.. . . . 285,190.45 61,791.01 31 904 Unconectible acecunts c. . . . . 102,362.81 (13,S60.58? 32 905 SiisceDaneous customer accounts expenses. . 9o _ y Total customer accounts expenses. .... 9e7_71 33 g . . .. . . 467 4 " % 97,359.95 34 - SALES EXPENSES 35 Operation: 36 911 Supervision. . . .. . . .. 3,S70.03 2,552.49 37 912 Demonstrating and se!!!ng expenses.. .. . 38 913 Advertising expenses.. .. . . .. ..... ....... . . . 39 916 Liiscellaneous sales expenses. . . ... ... ..... ... ... 40 Total sales expenses. .. . .... ..... ... ... 3,370.03 2,S52.49 41 AD3flNISTRATIVE AND GENERAL E'GENSES 42 Operation: 43 920 Administr2tive and general salaries. . . ... 150,544.24 9,732.09 44 , 921 C'.'.ce supplies and expenses. 33,434.03 e (S15.69 . 45 i 92:: Administratice unnses transfer ed -Cr.. . .. 6,465.00 46 923 Cutside serpces e=p!oyed. 121,269.96 23,332.36 47 924 Proprty insurance. .. ... 176,200.23 74,809.51 43 925 Injure sand darnsges. 124,364.64 (71,995.73) 49 92s Em .o.,ee pasions and bene *ts. . .. 6,284.88 50 923 R tuiatory commission expenses. . ... . ... (31,467.90)> (1,169.37 51 909 E piicate charges-Cr. . ... .. . . . .. .. . . ... 52 930 at:scu.c.-*s gene ai exanses. . .. . .. . 28,350.93 2,040.35 53 , ;tEO:XX 9 33. h.c.- orts :icn .Sspe:t:: es . . . . .. .. 84,824.60 15,072.23 54 : Total ope-stion. . . 725,273.61 26,002.S0 8.17-31
c Annus croort at.. 7,wgyo3. MUNICIPAL LMC' d EN . . . Yaar 'ad'd D' cam **' 31 19 7 ELELfRIC OPERATION AND MAINTENANCE EXPENSES-Continued inc,e.s. o, s une # "'""1
***""'T**' ' ' ' ' ' ' "
No. teced s ea ~' (a) (b) (c) 1 ADMINISTRATIVE AND GENERAL EXPENSES-Cont. 5 $ e Maintenance:
- on Maintenance of general plant. . . . ..
4 48,593.81 (4,571.28) Total administrativ, and general expenses. .
.i 773,867.42 21,431.52 Total Electric Operation and Maintenance Expenses.
16,576,235.36 1.113,557.68 I
SUMMARY
OF ELECTRIC OPERATION AND MAINTENANCE EXPENSES Une Functional Crassification - operation No. (a) Maintenance Total (b) (c) (d) 6 Power Production Expense's 3 3 7 $ Electric Generation: s steam power. , 0 Nuclear power. . . 7,425,483.25 1,301,430,49 8,726,913.75 10 I!ydraulic power. . . . , . . . . . . . I1' Other power. . . . . , . ....... 12' Other power supply expenses. . . . . . la' 5,002,f4f 33 h 802 s464.SO Total power production expenses.. '~ 14' Transmisrlon Expenses. . . . . . . . .. 13,227,948.06 1,301,430.49 14,529,378.55 13- Distribution Expenses. . . . . 81,289.84 ' 15,136.62 95,426.46
.' .. . 376,507.83 IG Customer Accounts Expenses. .
323,702.53 705,210.36 17 Sales Expenses. . . . . . . . . . . 467,482.54 467,482.54 13 3,870.03 3,870.03 Administrative and Genera! Expenses. . 7:5,272.01 4Sf5WGi-- 19 Total Electrie Operation and 77h W .42 20 Maintenance Expenses. 3 funaq,371,o1 1.693.863.45 16.576.233.36
. e 01 Ratio of operating expenses to operating revenues (carry out decirnal two places. e.g.: 0.00%) MD;*
! line .Jtel). Depftetataca (ActL 49J) and Actorusanoa..tAack . to7)...rwig. .ee t,r dividsne Rareauca (Acct 400) into th. sen 22 Total salaries and wages of electric department for yes , including amounts charged to oper-ating expenses, construction and other accounts. i 2:1
. ... .. . . 3 ' ; " ; " W--- -
Total number of ercployees of electric department at end of year including administrative,
- oper: sting, maintenance, construction and other employees (including part time employees) 146 --
8.17-32
~
_s .
} )
I TAXES CIIAl(CED DUltlNG YEAll E i
- 1. TI.is schedule is intenelnl to give the account dis. 3. The aggregate of eacle kin.1 of tan should be listed number of the appropriate balance sheet plant account e tribution of total taxes charged to ogerations and other under t he appropriate heading of " Federal." " State." and or subaceount. E fin.nl accmints during tl.c year. " local ** in such snanner that the antal tan for each State 5. For any tax which it was necemary to apportion 2
- 2. Do not include g.asuhrie and other nah4 tases which and for all sutulivisions c n read @ be avertained. to more than one utility department or account, state have been charged to accounts to which the anaterial E in a footnote the basis of apportioning such tas. :
on which the las was levied was charged, If the actual 4. The accounts to which the taxes chargcd were dis. 6. Do not include in this scheilute ent ries with rer.pcet . or estiinated amounts of such taus are known they . tributed shoul.1 he shown in columns (c) to (h). Show to deferred income taxes or taxes collected through pay. : shmaid be shown as a footnote an.1 slesignated wisether both the utility department and nurntwr of account roll deductions or otherwise pending transenittal of such : estimated or actual nrnounts. chargeel. For taxes charged to utility plant show the taxes to the taxing authority. :
- i
*" Destribution of Temos Charg.td (eenit cents) #
(Show utility departenant where appalcatete end account charged) g During Year efeciric Gas
- r1 Line Poe.
Mand of Tea to) (onus cents) (b) (Acce. 408. 409) (c) (Aces. 40s. 409) (J) (e) (f) (g) " (h) . (e) (l)
*j r
at 1 : g:s" 2 Nonc ' 3 i[I.
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- 3 4
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8 :. I,2 1 9 jn_ 6 jd 10}}