ML20072G666

Annual Financial Rept 1982

ML20072G666
Person / Time
Site:	Comanche Peak
Issue date:	06/15/1983
From:	Matthews C TEXAS MUNICIPAL POWER AGENCY
To:
Shared Package
ML20072G635	List: ML20072G639 ML20072G666 ML20072G678 ML20072G694 ML20072G708 ML20072G713 TXX-3688, Forwards Annual Financial Repts 1982
References
NUDOCS 8306280588
Download: ML20072G666 (16)

Text

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TEXAS Nil'NICIPAI,10WER AGENCY ANNt!AI, REIORT 19M2 1

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I TEXAS Nit'NICIPAl,IUWER AGENCY

(.1 Detrlopment Stage linierprise}

STATISTICAL AND SIGNIFICANT lilGilLIGilTS For the years ended September 2, I481

~ Yaa/ities 1932 1981 1{[

Pmentages Gibbons Creek Plant Completion 95.89 78 9 Comanche Peak Plant Completion l' nit #1 919 869 l' nit #2 54 %

469 Thefollowieg Sienifirant flighlights airfor Gibbons Cmf Steam Elearie Station I

• nit #I.

..N. ilN E Started erection of mine conve3nr system 1/82 Completed haut road construction 7/82 First dragline was completed and commenced to dig coal 7/82 First ton of coal was delivered to plant 9,82 TRANSN11SSION PROJECTS Completed construction of the plant swirthyard (iH2 Energized suitchyard 7/82

l Pl. ANT Commenced startup (Checkout) of plant 12/81 Ilydn>ed boiler 12/M1 Energized auxiliary electrical systems 1/M2 Placed demineralizer in senice 2/82 Placed auxiliary boiler in senice 3/82 Started erection of plant office building 5/82 Chemical cleaned boiler 7/82 Completed plant maintenance building and commenced to operate 7/82 Completed steam blows (Cleaning) 8/82 Placed emergency diesel generator in senice 9 82 Placed lignite and limestene handling systems in senice 9/82 Test fired boiler igniton and warm up guns 9.82 Rolled turbine and synchronized 9 M2 Achiesed 979 plateau for plant completion 9/82

Ur!;t.R i

Guduated first dass of plant operators 2/82 Commenced training second class of plant operators 7/82 Ilired new general manager 9/82 c.ut er 1%oto:

The lixas.Ilunidpal keer.1gemy is a separate

.tv etrning cin: of the (;ibboni cmt P !"! Ih'pla"! cas 95k9 <omplae h

mznidpalcorpomtion, a politicalsubditision of

'" S'P " *b" IVSE the state and a body politir and rorporate. It cras establishedin I975 lry the cities afIlnan, Denron.

Garland and Grrentille to jointly plan, finance, constntrt and operate electricalgeneration and transmissiorrJarilities to meet tneir ener:3 nmh.

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I Tile PRESIDENT'S NIESSAGE:

~R2 What an exciting time this is for Texas N! uni-source of resenue to generate additionalin-cipal Power Agency. Our Gibbons Creek Plant come for the Agency in order to reduce the is in the startup phase and generating elec-cost of electricity prosided to the.\\lember tricity by the burning oflignite from our Cities. We have an obligation to the four mine. The wisdom and foresight of the four

.\\lember Cities to manage our personnel, our Cities joining together to form this Agency is facilities and environment in a wise and pru-now very esident.

dent manner.

A new General.\\lanager has been hired, Ed As an Agency we will strive to be good neigh-Wagoner..\\lr. Wagoner brings to the Agency hors at our plant site while at the same time the excellent management skills we need. Ilis assisting our.\\lember Cities to meet and man-background as a highly successful City.\\lan-age the energy challenge of the 80's. The ager in Texas will enable us to better serve Board of Directors, with the assistance of the the specific needs of our.\\lember Cities.

Agency Staff stands ready to carry out the responsibilities of the Texas.\\lunicipal Power

,Fhe Board of Directors and the Staff of Agency as we enter a new era as an operating l'AIPA will face a number of challenges th.is utility.

year. The first challenge and obligation will be to operate the Gibbons Creek Steam Elec-tric Plant in a manner that will produce a Cities. In addition, we must manage the re-

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highly reliable source of electricity for the di gp sources that we have at our disposal in the Charles R..\\latthews best possible manner and seek innovative President ways to use the by-products from the Plant.

Roard of Dim 7 ors At TAIPA we must examine every possible 7isas.llunicipal Forcer.terner

Tile GENERAL, AIANAGER'S NIE5 SAGE:

1982 has been a year of transition for TNIPA, strated at TNIPA. The support of our Cities, 3 1 ~ ~ ~

with the Agency shifting emphasis from cor.-

bondholders, lloard of Directors and em-struction of facilities to the operation of an ployees has been instrumental in our progress.

clectric utility.

Continued support uill assure our success.

During my tenure as City Nf anager of Green-I look forward to my association with TNIPA ville in the early 1970's, I was involved in the and the challenges we will face in the coming early discussions that ultimately led to the Scar. This will be an exciting and rewarding formulation of this Agency. As General Nian-period for all associated with our project. I am ager of TNIPA, ! welcome the opportunity to confident that we will meet these challenges resume my association uith our four Niember and achieve our goal of providing low-cost, Cities. It is fulfilling to see the results of the reliable electric power to our NIember Cities.

decision to build a lignite-fired power plant in Grimes County come to fruition.

TNIPA is on the verge of providing power to its Niember Cities. The testing and startup of our facilities is progressing at a rapid pace.

Organizational changes and stafting of key positions has consolidated operational areas, solidified support functions and stabilized d.

F# Q Agency management to assure an efhcient and economical operation.

Ed Wagoner General.llanager The concept of joint action as a viable method of providing electric energy is being demon-i L.

I PROFILE OF CITIES 1982

)) 4 Ilrvan Denton Garland

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Greensille 6

Population-1981 53,582 l51,150 I 144,(KX) j 24,4(Mt Population-1970 33,719 38,874 l 81,437 22.043 Median Family i

$22,675 f $18,4(x)

I Income (est,)

$22,218 _

1 $24,4(M) -

l 94.09

! 93.7'J Employ ment (est.)

94.29r" 94.5 %

lluilding Permits (est.)

2,066 580 l 3,466 i280 Major Industries and Entrg~ r-rrlated pnx!uition, l ()irsd trwks, ralding I.11etadproducts, ainraft i.tpiraharal themicals, 11usinesses buildsng mattnals, plastic s equipment, businessfanns, ' equipment, trucks, l ru/krgowls, bakery items, containen, foodpnnluai, l lingrie, flour, multi-vall -

ammunition. dnlling j ainraft modification, furnitarr, businessforms l paperbay, computer equiparat, vaanng l raaring app <ml, voexten f soltrare, mirrotara l apparrl, nrrrational i doon i antennas

equipment, ehrmical

! pnuluas, fwalpnaturts Other Rcsources Ranching, agriculture, Ikw unitrnities, museums, l Ranihing. intentate lakes and trutrational waterandhydrrxarbonfud i historic sites, lakes and l hi;) car transportation, faalitics, intentate highr<ry

deposits, unitrrsity l wtrationalfaalities l lades andirrrrational transportation l

l facilities Electric customers j

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Residential 18,965 l 17,244 37,546 l 8,381 i

l1,293 Commercial 2,603 i 2,343 t 3,280 I

f 19,587

!40,826 l 9,674 i

'Ibral 21.568 i

Generating Capacity 230 MW

!168 M W 424 MW 95 MW q

Net Energy for

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lead (kWh, 000)

} 573,270 1685,000 1,360,000 l 262,890 i

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FINANCIAL.S 1

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I TEXAS.\\ll'NICIPAI, POWER AGENCY

(,1 Dezelopment Star Enterprise)

IIALANCE SIIEETS September 30,1982 andI981

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))6 EASSETS Notes 1982 198I Elertric Plant:

3-In senice:

Transportation equipment 130,(MX) $

160,(wx)

Furniture and Ihtures 346,000 346,000 Electric plant leased to others 403.000 403,GX)

Intangibic plant 445,000 445,(XW)

'[htal 1,324,(MN) 1,354,000 I,ess accumulated depreciation 466,000 397 00()

'Ibtal - net 858,GX) 957,000 Cons:ruction work in progress 2, 4 766,391,(n) 576.220,(KK)

Nuclear fuel 7,845,mX) 5,972,(XX)

'Ibral electric plant 775,094,000 583,149,000 Other.lssets:

Unamortized borrowing costs 24,145,000 16,886.0m)

Deferred expenses to be recoscred in future years 193,000 139,000 Total other assets 24,338,(MW) 17,025,(xXi Restriated.1ssets:

5 Cash 41,000 11,00()

Time deposits 588,000 Securities purchased under an agreement to resell, at cost 35,923,000 30,942,(XX)

United States Gosernment and Government Agency obligations 344,077,mX) 246,959,(XX)

Special deposits I,277,000 4,288,ux)

Accrued interest 7,MO,000 4,269,000 Accounts receivable and other 504,000 290,000 Advance payments to contractors I,248,000 457,000 Due from unrestricted assets 346,000 "Ibtal restricted assets 391,216,000 287,804,000 Currrnt.tricts:

Cash 17,(MW) 8,(XN)

Time deposits 159,ux) 100,(X)0 Securities purchased under agreements to resell, at cost 1,892,(XX) 1,056,(X X)

Accounts receivable and other 19,uk) 61,000 Due from restricted assets 128,(n)

'Ibral current assets 2,087,m H) 1,353.000

'lUI'AI,

$1,192,735,000 $889 331,000 i

See notes to financial statements.

1.lAllll.lTIES AND RETAINED EARNINGS (Deficit)

.htes 1982 1981 7

Retai:rd Earnings (ikfinti,laumulated I)uring 74r />arlopment Stage (24,tMx)) $

428,(xx) long-? ins ikbt:

Resenue bonds, excluding current instalments:

6,10 Series 1976 49,310,000 50,(xx)JMx)

Series 1978 250,(XX),t xx) 250,(HN),(xx)

Series 1979 3(V),(xx),(Xx) 3(N),(M K),0(H)

Series 1980 250,(MN),(x x) 250,(MN),(xW)

Series 1982 3(H),(xx),fMx) l'namortized discount and premium - net (421,00())

(464,(x N))

Notes pa>able, excluding current instalments 7

2,345,000 2,t45,(x x)

'Ibtal long-term debt 1,151,234,(xx) 852,201,000 Cxtrr;;t liabilities:

l'ayable from restricted assets:

Current instalments of long-term debt 1,125,(KM) 360,0(W)

Accounts payable 21,441,(XH) 19,526,000 Retainage payable 6,682,(xx) 6,135,000 Accrued and matured interest 10,106,(xx) 9,542,(xK)

Accrued compensation and pension benefits 450,(xx) 446,0(x)

Due to current assets 128,(NM)

'Ibral payable from restricted assets 39,804,000 36,137,(xx) l'ayable from current assets:

Accounts payable 1,375,(NX) 565,000 Due to restricted assets 346.(XX)

'Ibral current liabilities 41,525,(Nx) 36,702,(H N)

Commitments and Contingem rer 4, 9

'lUlAL

$1,192,735,(xW) $889,331,(x Ni

I TEXAS.\\lCNICIPAL POWER AGENCY

(.1 Darlopment Stage Enterprise}

STXfE.\\lENTS OF OPERX1'lONS AND RETAINED EARNINGS (Deficit)

,lasmulated during the darlopmost stagefor the yars ended September 3J.1982 and1981 andcumularitrfirim inaption fJuly 1975) to Septemlrr30,1981 lj H 1982 1981 Cumulative Operating Rarnurs:

Charges to participating Cities

$ 503.000 $ 497,000 $ 3,219,000 Other operating income -

(A000 46_,0m) 162,000 Total operating revenues 563,000 543,0m) 3,381,000 Operating Retrnar Ikductions:

Operating and general expenses 260,0X) 329,(XX) 2,605JXX)

Depreciation and amortit.ation 54.000 56,(XM) 189,mX)

Total operating revenue deductions 314,(KN) 385,000 2,794,0m)

Net operating resenues 249,000 158,000 587,000 Otherincome tikductwns):

Revenues of electric plant leased to others 101,000 95,000 333JXX)

Expenses of electric plant leased to others, including depreciation of $19,000 per year (68,000)

.(49,000)

(318,0(X))

Interest income 53,818,000 47,695JXX) 171.691,000 Interest expense on long-term debt (89,905,0u)) (62,345,000) (235,333,000)

Other interest expense (618,000)

(618,000)

Amortization of debt discount, premium and Imrrowing costs, net (1,128,000)

(961JXX))

(3,595,000)

Gain on sales of securities 874,000 4,000 968,(XX)

Allowance for funds used in projects 36,341,000 16.225,000 66,889JXX)

Other income - net 33,000 46,000 17,0X)

Ikfened Expenses to be Rennrredin Future )hirs 54,000 47,000 193JKX)

Nrtincome 336,(XX) 301,000 797JXX)

Retained Eantings fIkfrat).laumulatalJunax the IMriopment Stage:

At beginning of period '

428JXN) 127,000 Distributions to participating Cities (788,000)

(821,000)

At end of period

$_(24,000) $ 428,GX) $ __ g4,000)

See notes to financial statements.

TEXAS N!UNICIPAL M)WER AGENCY

(.1 I)nrlopment Stage Entnprise)

STXi'EAIENTS OF CHANGES IN FINANCIAL, POSITION For theyan endedSeptemler 30,198.? andl9MI andrumularityfinm inception fJals 1975) to Septem/gr3J,1981 1982 1981 Cumulatise 9(

IJ Sorects of Il'oriing Capital:

' Net income 336,000 $

301,0(X) $

797,000 Depreciation and amortir.ation 19AXXI 19,000 150,000 Morking capital provided by operations 355,000 320JM)0 947Jxx)

Prc,ceeds of resenue bonds 300,000JXX) 1,160,0M JX)0 Increase (decrease) in notes payable, excluding current instalments (320,000) 298,u)0 2.345,ux)

Proceeds from sale of equipment 25.559,000 25,559.000 Total

$3?5,594,000 $

618JXN) $1,188,915,000 l'ses of it'orfing Capital:

Addhions to electric plant in service 48,ux) $

1,236,000 Additions to construction work in progress

$215,704.000 181,523,000 790,170,000 Additions to nuclear fuel 1,873JMM) 661,(XX) 7,845,(xx)

Increase (decrease)in net restricted assets 99,745,000 (182,787,000) 351,412 000 llorrowing costs 7,216J100 825,000 25,750,000 Current instalments of resenue bonds -

690JK)0 690,000 Distributiens to participating Cities 788,000 821JXx)

Refunding of revenue bonds, Series 1975 10,625,000 increase (decrease) in working capital (422JXx))

348,000 366,000

'Ibtal

$325,594dxx) $

618,000 $1,188.915JMN)

(Angr$ in Components of Net RatrittrdJssets:

Increase (decrease) in restricted assets:

Cash, investments and special deposits

$ 98,530,000 $(176,889,000) $ 381,318,000 Accrued interest 3,531,000 (1,981,000) 7,800,000 Accounts receisable and adonce payments to contractors 1,005,000 (1,001 JXX))

1,752,000 Due from unrestricted funds 346,000 346JK)0

'Ibtal 103,412,000 (179,871,000) 391,216JMx)

Increase (decrease) in liabilities payable from restricted assets, Current instalments of long-term debt 765,000 53,000 1,125,000 Accounts and retainage payable 2.462,000 (2,000) 28,123,000 Accrued mmxnsation and related benefits 4,000 446,000 450JKM)

Accrued and mtured interest 564,00) 2.487,000 10,106,ux)

Due to current assets (128JMK))

(68,000)

Total 3/>67,000 2,916,000 39,804.000 increase (decrease)in net restricted assets

$ 99,745,000 $(182,787,000) $ 351.412J)oo

^ Charges in Components ofit'orfing Capital:

Increase (decrease)in current assets:

Cash and insestments 904,000 $

166.0m) $

2,068JXx)

Accounts recciuble and other (42,000) 35,ux) 19,000 Due from testricted assets (128J)00)

(68,000)

'Ibtal 734,000 133,uX) 2.0'l7JU)

Increase (decrease)in liabilities payable from

~ current assets:

Accounts payable 810JKM)

(33JXX))

1,375JXN)

Accrued compensation and related benefits (182JX)0)

Due to restricted funds 346Jxx) 346JXX)

'Ibtal 1,156JNx)

(215,000) 1.721,000 Increase (decrease) in working capital

--$_ _ _(422,000) $_ _348,000 $ _ _366,000 See notes to financial statements.

r TEXAS hlENICIPAI, POWER AGENCY (A Detrlopment Stage Enterprise)

NUI'ES 'IU i>lNANCIAI, STSI'ENIENTS

~r : in

/. Genera /

The total financing requirements for the

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The Texas N!unicipal Power Agency (TNIPA) above-mentioned projects upon completion was created in July 1975 by concurrent ordi-(after giving effect to the sales of equipment nances of the Texas cities ofIlryan, Denton, described in Note 9) are estimated by TalPA Garland and Greenville (Cities) pursuant to as of September 30,1982 as follows:

Chapter 166, Acts of the 63rd Legislature of Texas Regular Session,1973 as amended by

""$'j"'[""7 Chapter 143, Acts of the Mth I.egislature, steam electric station

$ 418,528.0m Regular Session,1975 (Act). Under the provi-

1. ignite mine 82,945,000 sions of the Act, TNIPA is a separate munici-Transmission facilities 48,658.000 pai corporation, a political subdivision of the 550.131,000 State, and body politic and corporate.

Comanche Peak IM8,376,c00 S '*' d***I P*'""d Y

In September 1976, TNIPA entered into identical power sales contracts with cach of R

ont gen funds the Cm_ es for the purpose of obtainmg the required by llond Resolutions 123,776,000 economic advantages of jo,ntly financmg, Net interest 239.23 L000 i

constructing and operating large electric Other 39.792.000 generating units and related facihties to

.lotal

$1.226,300,000 supply the Cities' future energy needs. The Cities, under the power sales contracts with TNIPA, are required to pay, for the benefits Upon completion of the sale of $76,300,000 received or to be receised by them from such of Revenue Ilonds in November 1982, as activities, an amount sufficient to pay TN!PA's described in Note 10, the above financing operating and maintenance expenses and the requirements have been met.

Ilond Fund, Reserve Fund and Contingency Fund requirements of the Revenue Ilonds.

3. Summary ofSignificant.laounting Polides E/stric Plant-Electric plant is stated

1. Naturr of Dadopment Stage cletirities at historical cost. Such cost includes payroll T.NIPA is undertaking, as projects approved related costs such as taxes and employee by the Cities on August 27,1976 and June 13, benefits, general and administrative costs, 1978, respectively, construction of the Gib.

and an allowance for funds used in projects, bons Creek Steam Electric Station, a lignite-Certain facilities, primarily transmission facili-fueled generating plant h>cated in Grimes ties, have been or will be completed prior to County, Texas with a net generating capabih.ty the completion of any generating plant.

of 390NI%, and acquisition of a 6.2% owner-These completed facilities will remain classi-ship interest in the construction of the fled as construction uork in progress until Comanche Peak Plant, a nuclear. fueled placed in service. At September 30,1982, generating plant being constructed by a sub-construction work in progress included sdiary of IFxas Utilities Company (see Note

$40.383,000 of such completed facilities.

4). In add [ mon to these projects, l'NIPA is planning or undertaking a number of "Sys-The cost of lignite rights are included in con-tems Desclopment and Reliability Expendi-struction work in p'rogress and amounted to cures" which primarily relate to transmission

$26,759,000 at September 30,1982. I. ignite and communication facilities.

rights include the costs of all preliminary and

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exploration studies, leaschold or fee acquisi-station, railroad spur and reservoir. It also n g' tions, delay rentals and adsance royalties.

includes an interest in a certain awociated transmiwion line.

Federa/ Incorne ' lines - Any income of TNIPA, Under the tenns of the Agreement, TN!PA is a political subdisision of the State of Texas, is esempt from Federalincome tax under obligated to pay 6.24 of all future (i) con-struction costs, (ii) nuclear fucI costs, and (iii)

Section 115 of the Internal Resenue Code, operating costs (after the station is placed into

.1//orancefor Fundr Usedin Pinjerts - TNIPA commercial operation) plus a management fee has capitalized to electric plant the net cost of of Gve percent ofits pn> rata share of operat-borrowed funds used during the period of ing costs and fuel costs (subject to certain cost construction. The net cost of bornmed funds escalation limitations). Subject to certain includes amortization of bond discounts, operational exceptions. TN1PA is entitled to premiums and Imrrowing costs, security reccise 6.29 of the net power output that gains and losses, and interest expense net of the station is capable of producing at any interest income, given time.

The Atomic Energy Act of1954 requires the

/>rpmiarion - Depreciation of electne plant issuance by the Nuclear Regul> tors Commis-in service is calculated by the straight-hne sion (NRC') of operating licenses for the Co-method using the following rates:

raanche Peak Station. The application fi>r the Transportation 339 operating licenses for both units was docketed Furniture and fixtures 209 with the NRC on April 25, IWS. Operating Electric plant leased to othen 59 licenses will not he inued fiir the Comanche intangible plant 3%

Peak Station under present NRC regulations Rrunur Roads - Issuance costs, discounts, unless various proceedings base been sue-and premiums of Revenue llonds are being cessfully concluded before the Atomic Safety and Licensing Board and the NRC, including amorti/ed by the sinking fund method user the period of the related maturities.

an independent review of the piping and pipe support systems by the NRC w hich is sched.

Re</assifications-Certain amounts in the uled fi>r completion in early 1983. TNIPA can prior Gnancial statements have been re-give no anurance that such operating licenses classiGed to conform with the 1982 Gnandal will be issued. If an opcutmg license has not been iwued by the time Unit 1 is ready ti>r statement presem ition.

fuel loadmg, costs u ill increase and the com-J.1,yuisition ofIntmstin Comanche Pral mercial operation dere will be delayed.

In January 1979 TNIPA executed :he Joint Ownership Agreement (Agreement) to acquire i Restri<ted. lese /c a 6.2% undivided ownership interest in the Restricted assets presented in the accompany-1' Comanche Peak Steam Electric Station. The ing balance sheets include those assets tom-project consists of two 1,150N!W nuclear-prising the liond. Resene. Contingency and fueled prewurized water-reactor steam electric Construction Funds u hich are established and units (scheduled for completion in 1984 fhr maintained pursuant to the llond Resolutions Unit I and 1985 for Unit 2) together with of TNIPA. All assets in the llond Fund and associated nuclear fuel, switchyard, sub-substantially all assets in the Resene Fund

71 12 are available only to meet the principal and standing, summarized as follows:

mterest payments on the Revenue lionds.

Ranxe of larhest Awets in the Omstruction Fund are aniilable starurine.

Interes_t Rates Redemption primarily fo( the pas ment of construction and series from

't h From Dare acquisition cows of these projects described in 1976 1983 2011 5 %

6%9 1986 Note 2. Th'c aggregate amount of assets in 1978 1984 2011 5.35 7

1988 cach of the'se funds aiof September 30,1982 1979 1985 2012 5%

7 1989 and 1981 is as follows:

1980 1985 2012 6 9%

1990 1982 1986 2012 9%

14 %

1997

,, 3g, 1982 1981 The llonds are payable solely from, and are liond Fund

$128,591,000 $ 6,733,000 collaterialized by an irrevocable first lien on, Resene Fund 114.909,000 81.316,(xx) the net revenues of TNIPA and the funds Contingency Fund 2,045,0(x) 2,(MI,000 established by the llond Resolutions, subject Construction Fund 145,671,000 197,714,000 to the payment of operating and maintenance 1btal

$391,216JKx) $287,804,000 expenses from money on deposit in the Rese-

~ ~ ~ ~

~~ ~

nue Fund.

TAIPA has purchased imestment securities Annual debt service requirements as of Sep-under repurchase agreements w hereby T.\\lPA tember 30,1982 are summariecd as follows:

wdl resell, at its cost plus accrued camings, specified amounts of the securities on or be-Principal Interest

'lbtal foie-specified dates. The securities are pri-Year Ending mady obligations of the United States September 30:

'llreasury, the Federal llome Loan.\\fortgage 1983 $

690.000 $ 1(4,941,000 $ 105,631JNN)

Grporation, the Government National Niort-1984 4.215JXx) 1(u,906axx) 109.121Jxx) gage Association, and the Federalllome Loan 1985 11,270 000 1(n,683,000 Ils.953Jul y

llank. At September 30,1982, T.\\lPA had 1986 13,455Jul 104,0>4,000 ll7,509J)00 repdrchase agreements bearing interest at 1987 14,300,000 103,226.000 117,526JU)

I ratts. ranging from 9.54 to 13.55% with resale

• h 070 m mmWm datei m October and November 1982.

t

'Ibtal $1,150JNx)Jxx) $2.276,534,000 $3.426.534J100 l'nited States Government and Government Agency lbligations include United States 73 AM' Freasury bills and notes and securitics issued The Act p[rmits T.\\lPA to issue non-negotia-by the Federal llome 1,oan llank, the Federal ble purchase money notes payable.in instal-s Land llanks, and the Federal National.\\! ort-ments (collaterahied by the properties bemg gage Assoc.iation. I.he securities bear interest acqubed) in order to acquire land or fuel at rates ranging from 7.3% to 16.5% and ma-E*E#Y ""

ture at various dates between October 1982

' # '* ' * " N *

""'#* #EE and April 1991. The securities are stated at mated $7,269,000 as of September 30,198.

amortiied cost u hich, m. the aggregate, is not materially different than market. T.\\lPA in.

8. Retirement Plan tends ta hold these secun.. ties to matunty.

.I.AlPA has a retirement plan coscring substan-

6. Rme Ronds tially all its employees. The plan is structured T.\\lPA aas five issues of Revenue llonds out-so that T.\\lPA contributes 10% of gross wages

to a fund for participants. Employees may Navasota sold the equipment to third parnes n

contribute an additional amount up to 107 and entered into lease agreements with such from their earnings on a soluntary basis. Inter-third parties. Under the mining contract, est is earned on each indisidual's account un-T.\\tPA is obligated to make minimum pay-til retirement or termination. The employee ments equal to the costs incurred by Navasota becomes a vested participant after six months under its lease agreements for the draglines of service. Retirement plan costs for 1982 and and the conseyor estem. The aggregate 1981 were $485,000 and $251,000, amount of required payments at September respectively.

30,1982 (after gning effect to the sales of the equipment to Navasota in October and De-

9. Commitments cember 1982) is as follow s:

In connection with the pn>jects and activities described in Note 2. T.\\lPA has outstanding Year ending september 30:

1983

$ 6.691Jxm contracts for goods and senices which aggre.

1984 6m190 gate approximately $687,000,000 as of Sep-tember 30,1982 of w hich appnnimately

$547,000,000 has been expended.

19 4 6 miso In order to obtain certain property and con.

I.ater years 133,t h.ono firm certain rights necessary to complete the

%tal

$1%561,000 Gibbons Creek Steam Electric Station. T.\\lPA

~ ~ ~

has made certain payments to Grimes County The above amounts are subject to escalation and three school districts during the years under various circumstances as stipulated in 1978 through 1982. The Agency has agreed to the mining contract. In addition. T.\\lPA is

~

make additional annual payments, subject to required to pay adchtyonal amounts depending upon the levels of mimng actaitv. l'he adjustment as specified m. the agreement, at mining contract can be terminatcd by T.\\lPA

~

the rate of $520,(XM) per year, as long as the at any time subsequent to the expiration of an

~

Gibbons Creek Unit No. I is in operation.

initia'l six and one-fourth vear perh>d and by

~

The estimated total payments remaining to be Navasota at the expiration of the initial period made by TNIPA under this agreement are or at the end of any successive fise year appnnimately $15,100,(XX) as of September period thereafter.

30, 1982.

10. Subsegurnt Etents T.\\lPA has entered into a mining senices In November 1982, TNIPA sold $76,300,m0 contract with Navasota Nlming Company of Resenue Honds. The bonds range in matu-(Natasota) to operate the lignite mine at the rity from 1986 to 2012 subject to redemption Agency's Gibbons Creek Steam Electric Sta-on or after September 1,1992. Interest rates of tion. Under an option pnnided in the con-the bonJs range from 7%9 to 10WI depend-tract, T.\\lPA clected to have Navasota pnnide ing on the maturity date.

the major mining equipment to be used in the operation of the mine and sold its inter-ests in two partially completed draglines and a coal conscyor sy stem at cost to Navasota for

$61,709,000 ($25,559,000 sold in April 1982 and $36,150,000 sold in October and Decem-ber 1982L Concurrently with the sales,

Al'DI IURS' RElt)RT i4 The lhurd of Directors Texas.\\1unicipal Pimer Agency:

We base examined the balance sheets of Texas.\\1unicipal Ptmer Agency (A Deselop-ment Stage Enterprise) as of September 30, 1982 and 1981 and the related statements of operations and retained earnings (deficit) accumulated during the deselopment stage and of changes in financial position for the years then ended and cumulatise from incep-tion duly 1975) to September 30,1982. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as ne considered necessary in the circumstances.

In our opinion, such financial statements present fairly the financial position of Texas

.\\lunicipal Power Agency at September 30, 1982 and 1981 and the results ofits operations and the changes in its financial position fi>r the years then ended and cumulative fnim inception Oulv 1975) to September 30,1982, in confiermity with generally accepted accounting principles applied on a consis-tent basis.

?!b'Eb f Dallas, Texas December 15,1982

ItO\\RD ol DIRF.UlURS Charles R..\\latthews n g-Persident Int esiments Garland, ihas Avon Acker

\\*iie-hesident liigh ihhnology Company.11anagement

(:ity Council, Gnentille, lhas Roland Vela Sarriary-firasurrr I'nitrrsity Prnfessor (Jenton, ihas Richard Smith Real Fstate, Iand Derriopment

.11awr, lirian, lhas Wayne Gibson Ramher; Cattle llnder Ciuy Council, llryin, lhas Richard Stewart Cornmenial.tirline Pilar

.flayor, iknton. lhas Jerry J. Ransom Computer Consultant-Seientist City Coumil, Gnrrrcille, lhas William E Niagee Consulting Engineer Garlend, lhas 0

\\l.\\N.\\GD1ENT

- -ln Ed I,. Wagoner

- ~A General.!!ana;yr Frank 11. Ilass Jr.

Dimtor ofIsgalSatires William I! Freenun Dimtur of Finance Robert 11..\\lcKnight

.!!ana;yr of Constnirtion. Enginraing & Systems Iksie Donak! E. Cullum

.!!anager of P<rar Pnuluttion David O. liranham

.!!anager of Human Resounts Richard A. Johnson Intanal.Iuditor I)esign: Summerford 1)esign, Inc.

Photography: Philip Pr.nen