ML20084D296
| ML20084D296 | |
| Person / Time | |
|---|---|
| Site: | Farley  |
| Issue date: | 12/31/1983 |
| From: | Farley J ALABAMA POWER CO. |
| To: | Saltzman J NRC |
| References | |
| NUDOCS 8405010278 | |
| Download: ML20084D296 (43) | |
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COVER CONTENTS 7
Comparative Highlights 1
To the Stockholders
.2 Management Changes 3
Rates.
4 Financial Review 4
Electric Sales 5
Construction 7
f Generating Resources 9
i Industrial Development 11 s j +1D Research and Development 13 i
Employees 13 i.e. '. lby Report of Management.
19 Selected Financial Data
. 20 Management's Discussion and Analysis of Results of Operations and Financial Condition 22 Throughout Alabama Power's Auditors' Report 23 service area.manycustomers and Balance Sheets 24 company employees have estab Statements of Capitakzation
. 25 lished specialfriendships. At Statements of income.
26 oIfgrea$e cern.Ne t Statements of Earnings Retained in the Business.
26 takes generating plants and tech.
Statements of Other Paid-In Capital
. 26 nology to provide electricity, the Statements of Sources of Funds for realasset of our companyis our Gross Property Additions
. 27 emplopes.
Notes to Financial Statements
. 28 Officers
. 35 Directors
. 36 System Map.
Inside Back Cover i
Alabama Power Company is one of four operating companies of The Southern Company. Others are Georgia Power Company, Gulf Power Company (serving northwest Florida), and Mississippi l
i l
Power Company (serving southeast Mississippi). System affiliates also include Southern Company Services, Inc., which performs specialized services at cost for system companies upon request, i'
Southern Electric International, Inc., a consulting firm, and Southern Electric Generating Company, which is owned in equal shares by Alabama Power and Georgia Power companies.
A copy of Form 10 K as filed with the Securities and Exchange Commission will be available to stockholders upon written request to Richard Bowron, secretary. A copy of the company's Financial l
and Statistical Review is also available on request.
Alabama Powr Company /600 North 18th Strect/ Post Office Box 2641/
I abama Power h e,rm,nonam. Atas29itte'epnono205/2so.iooo I
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o DISTRIBUTION OF REVENUE DOLLAR *
(PERCENT) 1983 g F EDERAL STATE & LOCAL TAXES j
[] INTEREST CH ARGES & PREF ERRED STOCK DMDENDS g EARNINGS AVAILABLE FOR COMVON DMDENDS &
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'i E ARN:NGS RE TA;NED iN BUS: NESS OTHE R OPERATION & M A;NT ENANCE F UEL & PURCH ASED POV.E R DEPRECIATION & AMORTIZATION i
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'lNCLUDES ALLOWANCE FOR FUNDS USED DURING CONSTRUCTION AND OTHER INCOME, NET OF TAXES COMPARATIVE HIGHLIGHTS 1983 1982 l
(Dollarsin Thousands) j Electric Energy Sales (Millions of kwh):
l Residential.
9,176 9,153 I
All Other Retail.
19,644 19,311 j
Wholesa!e 5.403 5.475 j
Total.
34.223 33.939 Awrage Annual Use per Res!dential Customer (kwh).
10,400 10,466 Customers Served Directly at End of Year 1.015.203 1.001.832 I
Operating Revenues:
l Residential Sa'es
$ 629,478
$ 578.291 i
All Other Retail Sales 1,039,181 979,836 l
Wholesa!e Sales 190,104 189.345 j
Total from Sales of Energy 1,858,763 1,747,472 j
Other Revenues.
16,845 16.673 Total.
$1.875,608
$1.764.145 Operating Expenses:
Fuel
$ 542,760
$ 540,878 Purchased and interchanged PoAer, Net (27,539) 17,042 i
l Other 923.666 825,269 j
Total.
$1,438.887
$1,383.189 Incorne before Interest Charges.
$ 481,060
$ 409,527 l
Interest Charges (Before cred,t of $38.558,000 in 1983 at,d $51,796.000 in 1982 for a!lowance for debt funds used dunng construction and related l
j income tax effect) 252,671 262.408 l
Dividends on Preferred Stock 37,936 36,658 Net income after Davidends on Preferred Stock 229.011 162,257 Total Gross Utility Plant at End of Year
$6,549,618
$6,050.508 Gross Additions to Utility Plant Dunng Year 522,140 459,437 Construction Work in Progress at End of Year.
761,119 748,762 1
_ ~.. _ _.... _
TO THE STOCKHOLDERS WAlabama Power achieved fina e review the year 1983 with pride of accomphshment and draw confidence to face the challenges ahead.
and, for the first time since 1976, regained the A rating on its first mortgage bonds. Contnbuting to the improvement in the company's financial condition was the new :atemaking approach adopted in November 1982 by the Alabama Public Service i
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Commission. This concept estabkshes a range for the company's j
l rateof returnonend-of periodcommonequityandallowsforsmall, y
periodic rate adjustments to keep the company within that range j
1 and also provides for rate increases to recognize new generating
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facihties being placedin service.
l As anticipated, this concept had a stabilizing effect on retail f
electric rates. Since adoption of the rate stabikzation procedure, a l
revenue increase of only 2 percent has been necessary to keep the j
company within the specified range of 13.5 to 15 percent. In
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June 1983, a 1.8 percent rate increase was allowed under the certficated new plant rate to reflect the commercial operation of Harris Dam.
Under this innovative program, rates will decrease by 1 percent effective with Apn' 1984 bilhngs. This will mark the first general reduction in retail rates by Alabama r
Power Companyin some 20 years.
Coal continues to be the primary fuel source in a generat on mix that also includes nuclear and hydroelectric power in 1983, average operatng availabikty for the system's fossil fueled units was 90 percent.
Record hydroetectric generation and high performance levels by the Farley Nuclear Electric i
Generatng Plant benefited customers with continued fuel savings during 1983. Both nuclear units operated above 90 percent availahikty between routne refuekng outages, which represented an outstanding achieve-ment, reflecting both the quakty of the plant and the personnel who are responsible for its operation.
Sales of electricity to commercial and industrial customers recorded growth during 1983. As a further indication of the continuing economic recovery, U.S. Steel, one of the system's largest customers in the past, announced plans to reopen its steel making operation in Birmingham, while also bringing on kne its new seamless pipe facility, which represents an investment of $700 million.
Sales to utikties outside the Southern electric system are expected to grow as contracts to supply i
electricity from the Miller Electric Generating Plant to three Florida and Texas utikties take offect in 1984.
f While the company continues to stress efficient energy use, our renewed marketing efforts promote j
a more ba!anced load through the Good Cents Home program, replacement of outdated heating applications with the more etficient heat pump and energy efficient apphances.
The company's progress in 1983, achieved in the face of only the beginning of an economic recovery in Alabama, is a inbute to a!! the employees who work for Alabama Power and the Southern electric system.
Their dedication to the goals of the enterprise continues to help improm the responsiwness of our organization i
and the quakty of hfe throughout our service area.
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Joseph M. Farley President I
March 8,1984 2
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MANAGEMbNT CHANGES i
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j he company's board of directors made semral management I
changesin 1983.
l William B. Hutchins Ill, Rot >ert H. Haubein and Charlton B.
l McArthur were elected vice presidents; Travis J. Bowden was i
elected senior vice president; and Edward L. Addison and James H. Sanford were elected to the boart directors.
Mr. Bowden assumed responsibi for the financial operations of the company. Mr. Hutchins now has direct responsi-
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bilities pertaining to treasury, sales of secunties, and financial planning.
j Mr. McArthur assumed recponsibility for the company's Edward L. Addison, felt,and industnal development department, and Mr. Haubein was elected James H. Sanford were elected vice president of the Weste:n Division.
to the company's board of Mr. Addison is president and chief executive officer of The directors.
Southern Company, and Mr. Sanford is president of McQueen Smith Farms, Inc., of Prattville, Ala.
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a Management changes in 1983 included the election of (I to r) William B. Hutchins lil, Fiobert H. Haubeln and Charlton B. Mc Arthur as vice presidents, and Travis J. Bowcen as senior vice president.
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RATES uso inn 0 all of 1983, the new retail rate-making approach, i
Rate RSE (Rate Stabilization and Equalization) and Rate
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CNP (Certificated New Plant), was in etfect for the company l
This concept, adopted by the Alabama Public Service i
Commission in November 1982, estabbshes a range of 13.5 to 15 75 0 percent on the company's rato of return on end of period common 50 o equity and a!!ows for small, penodic rato adjustments to keep tho company within that range. A rate increase under Rato RSE is warranted only if the return on end of penod common equity falls
- ,, g below 13.5 percent. If the return exceeds 15 percent, the compary is required to redro rates. In September 1983, the Supremo Court t
" of Alabamaaffirmedtheordersof thecommissionadopting this
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approach.
crkfS In Februay 1983, a revenue increase of 2 percent becamo I
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effective under Rato RSE. As a result of the retum on end of-penod RESIDENTIAL ELECTRIC common equity being within the specified rango, no adjustment up l
j BILLS FOR SELECTED U.S.
i or down was required in October 1983 or January 1984. Under this l
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-O plan, rates will decrease by 1 percent effective with Apnl 1984 l
RATES IN EFFECT billings.
DECEMBER 1983 Rato CNP provides for rato adjustments which reco0ni20 the placing in service of new Generating facikties. In June 1983, a 1.8-percent revenuo increase was allowe'1 as a result of placing Harns Dam in service. The project was the f:rst certificated Generating i
facility to be given recognition under Rato CNP.
l On March 7,1983, Alabama Power filed a wholesale rato increase request with the Federal Energy Regulatory Commission
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(FERC) estimated to increaso revenues by $6 8 milkon annually. A settlement agreement providing for a $1.1 million annual increaso l
l to the company's electnc cooperativo customers was approved by l
the FERC in February 1984. Tho $4.G-milhon portion of the l
requested increase apphcab!o to the company's municipal l
j customers remains pending before the FERC.
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Alabama Power cucomers continued to benefit throughout l
1983 from fuel savings resulting pnmanly from record hydroelectnc l
l Generation ano high performanco lovels by the Farley Nuclear j
Electnc Generating Plant.
n r< n to it in n no ei to u l
DISMBUDON OF REVENUE FINANCIAL REVIEW DOLLAR * (19731983) i wetur>i n at traracr ron r ute et incomo for 1983, after dividends on preferred stock, was I
$$$$$t?MsWs^"D
$229 milhon, an increase of $6G 8 milhon over 1982. Iho rAntom A.m Ant r mn couvoN increase was duo pnmanly to the more reakstic rates in offoct i
gfg [ AnNING nl TAINE D dunng the year, the company's continuing emphasis on cost I
amiNii nt nt cnAnors A rno r noto controls and productivity, the overall officiency and availat>hty of l
I amIt$r$A t$ tocAt TAna the company's generating plants, and a lower rato of inflation.
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- DiPot C1At'oN A AMonil/AfloN se ofor n ott RAtlON A MAINir NANCr eseFUrL% PUnCHA?JD MAVIN l
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7 The company's return on average common equity increased from 12.62 percent for 1982 to 16.12 percent for 1983.
Additionally, at year's end, the interest and dividend coverage ratios under the mortgage indenture and corporate charter were 3.33 and 1.77, respectively. This indenture coverage is the highest since 1970. The minimum coverage ratios under the mortgage indenture and corporate charter for the issuance of additional first 3g mortgage bonds and preferred st xk are 2.0 and 1.5, respectively.
In September 1983, the company sold two milhon shares of Adjustable Rate Class A Preferred Stock with an initial dividend rate of 11.04 percent and stated capital of $25 per share. Net proceeds me from the sale were used for the construction program and other financial requirements.
Dunng 1983, internal funds suppl ed 65 percent of the company's requirements, thereby limiting the need for outside no y 74 73 70 77 73 79 m m u,o T e company regained the A rating on its first mortgage bonds h((g$g in September 1983 when Moody's investors Service upgraded the inuons or e ratings on the bonds to A3 This rating is the highest since 1976.
Moody's also upgraded the company's preferred stock to baa2.
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ELECTRIC SALES ipeak hours While the company continues to stress n 1983, Alabama Power's commitment to marketing took on a new emphasis designed to encourage customer usage in off-l ciency, our marketing efforts promote a more balanced load through the construction of Good Cents Homes and Apartments, the replacement of outmoded heatng apphcatons with the electnc heat pump, and the use of other energy efficient electric appliances j
and systems.
Total safes of electncity increased sl'Ohtly from 33 9 bilhon Wlowatt hours in 1982 to 34 2 t>lhon klowatt-hours in 1983. The peak demand for 1983 was 7.0 million kilowatts reached on August 24. It
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compared with 6.3 milhon kilowatts in 1982, representing an 11.3-I percent increase. The highest demand ever on the company's i
system was 7.2 million kilowatts dunn0 a record heat wave in 1980.
l Residential and commercial sales increased.3 percent and i
18 percent, respectively; industnal sales increased 1.7 percent.
j Wholesa!e and all other energy sales decreased 12 percent compared with 1982, pnmarily due to decreased sales to i
neighbonng utilities.
l Residential customers accounted for 27 percent of the company's total ener0y sales in 1983, commercial customers 17 l
l percent and industnal customers 40 percent. Wholesale and all other
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ener0y sates accounted for the remaininD 16 percent. By the year l
2000, we anticipate that our residential, commercial, industnal and
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Mitchell Dam near Verbena-second oldest of Alabama 4
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Power's 14 hydroelectric
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1 undergoing major expansions gy.1 to increase its capacity to 4,s.
guiserating units will replace 170,000 kilowatts. Three new I
e three original units installed in 1923, with a net increase of 3
g 97,500 kilowatts of capacity.
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to be completed in 1985.
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wholesale customers will require an estimated 30.8 percent more electric energy than they are now using, a compound growth rate of 1.7 percent a year.
l In 1983, more than 6,570 residential electric heating and i
heat pump installations were added to the company's system. Electric heat was installed in 69 percent of all new commercial bu:Idings.
Increased use of electnc heat is important because it enables the company to utilize during the winter months facilities which have been built primanly to meet the high demand which usually occurs i
in the summer.
Alabama Power has a firm commitment to market electricity aggressively among all classes of customers-residential, com-mercial and industrial. Our marketing programs are designed to i
increase the company's revenues, improve its load factor, and j
promote and strengthen customer goodwill.
500 CONSTRUCTION 4m Cduring 1983. At year's end, Unit 2 was approximate onstruction on three 660,000-kilowatt units at the coal-fired Miller Electric Generating Plant continued to move forward 3m 1
percent complete and scheduled for commercial operation in 1985; 2m Units 3 and 4 were approximately 4 percent complete with projected commercial operation in 1989 and 1991, respectively.
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i Alabama Poner contracted to sell generating capacity from the coal-fired Plant Miller to three off system utilities over an approxi-mate 10 year period. Under terms of agreements which begin in 73 74 75 76 77 78 79 80 8182 a3 l
1984, Gulf States Utilities in Beaumont, Texas, the Jacksonville GROSS PLANT ADDITIONS (Florida) Electric Authority, and Florida Power & Light in Miami will MILLIONS OF DOLLARS i
purchase electricity from the plant. When the contracts expire, all 7
Plant Miller units will be available to serve the needs of Alabama
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I Power customers.
Redevelopment of Mitchell Dam is approximately 63 percent complete. When completed in 1985, the hydroelectric facility will have a net increase in installed capacity of 97,500 kilowatts.
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70 73 74 75 76 77 78 79 60 81 82 83 AVERAGE RESIDENTIAL USAGE PER CUSTOMER 7
mOUSANDS of KWH
In conjunction with the emer-V f
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gency warning system for the
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Farley Nuclear Electric Gene-r rating Plant near Dothan, 3-r public communication assis-j tant Allan Mcdonald discusses j
emergency notification radios with a f amily hymg near the plant. Alabama Power v,,i p)
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distributed radios to approx-imately 2,400 homes and businesses within a 10-mile radius of Plant Farley. In addi.
tion, sirens were installed in Ashford, Gordon and Columbia
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as a part of a dual wartung system.
4 Opposite: Children at the Farley
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Visitors Center test their knowl-4-
edge and skills with the 9
' neutron gun" which demon-
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strates the creation of nuclear electric power by splitting a d..
simulated atom with a beam of light. The exhibit is among many computer games and graphic displays at the visitors center.
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l The construction of Harris Dam on the Tallapoosa River was completed in 1983, and the 135,000-kilowatt, two-unit hydroelectric plant began commercial operation in Apnl.
l During the year, the company spent approximately $522 million for construction of generating plants, transmission and distribution lines, substations, and other facilities.
GENERATING RESOURCES j
uring 1983, the company achieved outstanding availability from its nuclear, fossil, and hydro generating plants. Availa-bihty is the percentage of time units are available to provide electricity.
Plant Farley Unit 2 completed 280 days of uninterrupted service J
during 1982 and 1983 unt0ts routine refuekng on September 16. Unit l
1 has generated electricity 98.1 percent of the time since its last l
start up date on March 30,1983.
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Availability of the company's fossil-fueled and hydro generating units was outstanding at 90.4 percent and 95.4 percent, respectimly.
50 Alabama Power continued to rely on a generation mix of coal, nuclear, and hydroelectric power for its power production in 1983.
Fossil fueled units on Alabama Power's system supplied 58.4 3o i
percent of the total energy production, and nuclear generation 2o j
supplied 28.1 percent. Hydroelectric plants generated 13.5 j
percent of the total electricity produced dunng the year.
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The company purchased 12,165,153 tons of coal in 1983, alrnost exclusively from Alabama mines. At year's end, the o,,,
company had 4,272,926 tons of coal on hand, a 154 day PEAK DEMAND supply based on anticipated requirements.
MILuoNS OF KW Ending 11 years of legal proceedings, the United States Supreme Court refused Alabama Power's request to review a 1981
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order of the Nuclear Regulatory Commission requiring sale of an j
approximate 6 percent interest in Plant Farley to Alabama Electric Cooperative, Inc., of Andalusia, Ala. The two companies are continuing negotiations in an attempt to resolve issues relating to the terms of sale and future operations of the nuclear plant.
The installed generating capacity of the company totaled j
8,628,675 kilowatts at year's end. This included 50 percent of I
Southern Electric Generating Company's capacity at Gaston Electric Generating Plant and 60 percent of the capacity of the i
Greene County Electric Generating Plant.
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T F T TA W
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me AND oil l
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Marketing engineer Wanda Martin meets with a new com-mercial customer to discuss electrical engineering require-ments for a restaurant under construction in west Mobile.
By predetermining energy needs Alabama Power can help a business or plant ensure energy efficiency from the first day of operation.
Opposite: Charlton Mc Arthur, h
vice president, industrial devel-7 opment, meets with Kagechika Matano. Japanese consul gen-eral, to discuss Alabama Power's competitive energy costs. As a member of an Alabama delegation that traveled I
to Japan, Mc Arthur also met with top Japanese business and industrialleaders.
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3 INDUSTRIAL DEVELOPMENT Since the 1920s, Alabama Pawr's extensive industnal development program has fostered industrial expansion and attracted new companies to the state. The results have been new businesses, new jobs, and a larger, stronger, and more diversified economic base in Alabama.
Industrial development continues to be a high prionty for the i
l company. Alabama Power's activities are closely coordinated with
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j As the state's economy impromd during the year,483 industrial m
l firms announced plans to locate or expand facilities in Alabama Power's service area, creating 9,052 jobs and an annual payroll of approximately $113 million. When these additions and expansions are in full operation, total inwstment for new and expanded industries announced in 1983 is expected to be approximately $1 billion.
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An encouraging sign of this area's economic resurgence is the new j
United States Steel pipe mill at Fairfield Works. Considered by USS to be "a truly world-class pipe mill,"It will be capable of shipping 600,000 tons of finished seamless pipe yearly. lts other products will be tubing, casing, standard seamless pipe and line pipe.
11 i
Don Erwin, materials services Y
specialist, speaks to the Jasper Rotary Club. He is among 30 specially trained members of Alabama Power's Speakers Bureau Dunng 1983, company D
personnet made over 400 speeches on a wide range of topics.
Opposite: Research scientists continue to measure acidity levelsoflakesin the Adirondack Mountains as a part of pointly sponsored research pro}ects to determine the cause of acid it.
rain. Current efforts include ram j;
sampling, air quattty studies 1
s and ongoing efforts to control smoke and particulate emis-sions from power plants.
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RESEdRCH AND DEVELOPMENT
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I he year 1983 marked the 10th anniversary of one of the most dramatic events in the country's energy history: the OPEC oil embargo. Throughout the energy turmoil of the past decade, Alabama Power provided efficient, economical electncity to its c
customers and searched for better ways to fulfill energy needs at the lowest possible cost and with minimal environmental impact.
k During the same decade, Alabama Power pooled its research l
dollars with more than 450 other electric utikties across the country j
to support the work of the Electric Power Research Institute (EPRI).
l Almost half of the company's 1983 contnbution went to generation research to improve existing fossil-fueled and nuclear power generation systems. Approximately 83 percent of Alabama Power's generating capacity is fossil fueled and nuclear.
Overall, about 1,500 active research projects are currently under EPRI s management, representing a funding authorization in excess of $1.9 billion for a five-year period.
Alabama Power also participates in an experimental coal research center near Wilsonville, Ala., sponsored by the Southern electric system and EPRI. Tests conducted during 1983 confirmed that 25 to 40 percent less hydrogen may be needed to convert raw coalinto a clean burning hquid fuel, thus lowering production costs i
for synthetic fuels.
EMPLOYEES TEmployee participation in the savings plan and sto he company employed 9,917 people as of December 31, 1983 compared to 9,663 people a year earlier.
ship plan increased significantly during 1983. The pension plan and insurance programs also provided a wide range of benefits to employees.
i Alabama Po^er Company's commitment to employee safety in all aspects of its operation is illustrated by the excellent safety record achieved in 1983. The year was completed with an occupational injury and it' ness incidence rate of.46 for each 200,000 man hours l
vorked, well below the national awrage for the electric utikty industry.
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REPORT OF MANAGEMENT l
heMofMPtwerCompanyhasprepared I
and is responsible for the financial statements and related financial infortnation included in this report. The financial state-1 i
ments were preparod iri accordance with generally accepted accounting principles appfopriate in the circumstances, and necessarily include amounts that are based on best estimates and i
judgments with appropriate consideration to materiality. Financial information included elsewhere in this annual report is consistent with thefinancialstatements.
The company maintains a system of internal accounting controls to provide reasonable assurance that assets are safeguarded and that the books and records reflect only authorized transactions of the company. Umitations exist in any system of internal control based upon recognition that cost of the system should not exceed j
benefits derived. The company believes its system of internal accounting controls, augmented by its internal auditing function, appropriately balances the cost / benefit relationship, j
Independent public accountants provide an objective assess-ment of the degree to which management meets its responsibility j
for fairness of financial reporting. They regularly evaluate the i
system of internal accounting controls and perform such tests and j
other procedures as they deem necessary to reach and express i
an opinion on the fairness of the financial statements.
~-
l The Board of Directors pursues its responsibility for reported j
financialinformation through its Audit Committee, composed of directors who are not employees. The Audit Committee meets periodically with management, internal auditors and independent l
public accountants to assure that they are carryin0 out their responsibilit;es and to discuss auditing, internal control and financial reporting matters. Both internal auditors and independent public accountants periodically meet alone with the Audit Committee and i
have free access to the Committee at any time.
W3 belmo that these policies and procedures prculde reasonable l
assurance that our operations are conducted with a hi0h standard of business conduct and that the financial statements reflect fairly t
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the financial position, results of operations and sources of funds for gross property additions of the company.
L i
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I 19
SELECTED FINANCIAL DATA (DollarsIn Thousands) 1983 1982 1981 1980 Condensed Statements of income:
Operating Remnues.
$1.875.608
$1.764.145
$1.594,022
$1.421,997 Operating Expensos:
Operation and maintenance 941,960 940 262 978,075 816.243 Depreciation and amortization..
169.231 169.753 147,581 127,840 Taxes other than incomo taxes 107.445 06 936 80,878 74,488 Fixieral and stato income taxes.
220 245 176.238 92.773 114.427 Total Operating Expenses,
1.438.887 1,383.189 1.305.307 1,132.998 Operating incomo 430,721 380,956 288.715 288,999 Other incomo, Net 44.339 28.571 40.927 42.715 incomo Defore Interest Charges 481.060 409.527 335.642 331,714 Not interest Char 00s...
214.113 210.012 199.762 170.997 Dividends on Preferred Stock 37,936 36 658 36.071 31,013 Net incomo After Dividends on Preferred Stock..
5 229.011 5 162.257
$ 99.809
$ 129.704 Cash Dividende on Common Stock.
$ 145.200
$ 130,700
$ 120,800
$ 115.300 Return on Average Common Equity (Percent).
10 12 12.02 8.17 11.01 Total Assets.,,.,..,,
$5,120.007
$4,683,358
$4.449,120
$4.244,932 Omes Property Add 6tions.
$ 522,140
$ 459,437
$ 437,587
$ 411.813 Capitaliastion:
Lommon stock equity
$1,499.909
$1,340.890
$1.231,001
$1,211.417 i
Preferred stock...
424.400 374,400 374,400 334.400 Pre' erred stock subject to mandatory redemption.
38.034 42.234 43,789 47,500 Long tenn debt 2.404.565 2.370.050 2.394.674 2,159 793 Total Capitah/at>on,
54.366 908
$4,127.574
$4 043.924
$3,753.110 Kilowetthout Sales (in Thousands):
ResidentJ.
9,170,413 9,153.173 0.229.255 9.510.609 i
Commercial 5.810.678 5.715.G30 5.580.990 5.514 844 13 688.096 13,460.193 14.651.012 14,499 375 Industnal....
Sales for resalo.
2.490.899 2,4085404 2,402,331 2,518.347 Other 138 901 134.811 131,117 127.582 i
Total Territonal Sales 31,316.987 30.872,711 32.000,705 32,170.757 Non torntonal sales.
2.905 585 3 060.423 1.768 650 1.340 912
~
I Total Kilowatthout Sa!os 34 222.572 33 939.134 33 769 355 33.517.669 i
Operating Movenues:
Hosidentd.
$ 029.478
$ $78.291
$ 518,730
$ 489.031 Commercial.,,,
398 827 371,581 325.388 293.570 t
Industnal 631.440 000.219 584,030 507,784 Satos for res,fo,
97,731 99 014 89.727 77,027 Other 8914 8 030 7.644 0.700 Total Territonal Hovenuen 1,760.390 1.057,141 1,525,519 1,374.724 Non terntonal revonuc9, 92 373 90 331 50013 37.304 Total Acenues from Sales of Doctrcity 1,858 703 1,747.472 1,581,532 1,412.028 Other rownues 10 845 10.073 12.490 9.969 TotalOperatn0 evonuns,
$1,875 008
$ 1,704,145
$1.594 022
$ 1.421.9d H
i Customers (End of War) 1,015.203 1,001.832 990 200 986,082 Employees (End of War).
9917 9.603 0.001 9.573 i
A Movenues Ptr Kliowetthout Sales (Conts),...
$ 43 5.10 4 08 4 21 Average Coot of Fuel Per Not Kliowetthour Genereted (including SEOCO)(Contt,),
1 74 1.00 1.84 1.01 20
1979 1978 1977 1976 1975 1974 1973
$1.163.623
$1.014.443
$ 968.693
$ 699.667
$ 631,250
$ 489.455
$ 396.841 700.647 655.384 594.880 461,504 362,041 300,718 185.372 123,075 109.315 69.938 57,692 51,394 45,523 40.605 74.592 63,737 47.887 45,584 38,147 34.370 30.241 58.759 25 080 89.161 36.577 58 342 26.426 44.076 957.073 853 516 801.866 601,357 509.924 407.037 300 294 200.550 160.927 166 827 98,310 121,326 82,418 96.547 40.775 44 892 57.436 95.552 75.012 55.383 33.780 247.325 205.819 224 263 193,862 196.338 137.801 130 327 158.666 131.697 83.101 115,053 101,609 72.843 55.472 31.219 31.219 23 886 22.385 16.947 15.964 9.7Gi
$ 57.440
$ 42.903
$ 117 276
$ 56.424 77,782
$ 48.994
$ 65.089
$ 54 000
$ 108.800
$ 94,900
$ 60,000
$ 60.000
$ 46.800
$ 45.000 5 82 4 46 12 82 7.18 11.60 8 61 13 89
$3 995.816
$3,717,638
$3.341,428
$2.886.941
$2,520,299
$2.142,355
$ 1,742.852
$ 459.533
$ 483.430
$ 540.076
$ 443,951
$ 447,966
$ 428.874
$ 383,114
$1.022.533
$ 952.648
$ 971.626
$ 858.300
$ 713,197
$ 628.415
$ 511,109 334.400 334.400 334.400 235.400 235,400 235.400 200.400 50.000 50.000 50 000 50.000 1 883 684 1 851 394 1.652 013 1 294.731 1.200.277 1.015 948 897.333
$3 290 617
$3,188 442
$1008 039
%2.438.431
$2.148.8 74
$ 1.879. 763
$ 1.608.842 8 679.417 9 088 856 8.804.755 8.135.215 7,743.609 7,321.419 7,344.878 5.207,513 5 282.746 5.121.461 4.793.698 4.611.863 4.306.750 4.194.288 14 629 581 13.799.043 12.845.489 11.872,717 10.742,325 10.992.118 10.867,180 2.461.078 2,473.439 2.346 603 2,134,011 2.020,406 1,954.525 2.330.717 126.729 125 177 120 556 117,377 111,313 104 989 97.097 31,104.318 30.775 261 29 238 864 27.053.018 25.229,516 24.679,801 24,834,160 6 286 342 302 615 423 544 327 420.868 552.995 31.110 004 31,117.563 29.854 287 27.597.34l5 25.0$0.384 25 232.796 24 834.160
$ 385 224
$ 351.644
$ 339 393
$ 248.306
$ 230.161
$ 178.949
$ 152.689 242 626 213 059 208 864 152.076 140,568 109.944 92.121 442.221 357.691 338 007 238.282 208.068 165.540 127.415 76.056 67.539 56 872 42,308 38.229 21.362 17.434 6 335 6004 5 663 4.310 4.051 3 814 3 503 1,152.402 995917 948.799 685 202 621,077 479.009 393,162 1.222 10 534 12 496 7.817 5 253 5031 1.153 684 1,000 471 961.295 69J.099 020,330 484.640 393,162 0939 7.972 7.398 6.568 4.920 4.815 3 679
$1.1h3_023
_$1.014 443
$ 968 693
$ 099.007
$ 031,250
$ 489.455
$ 396 841 970l200 961.440 938 575 921,208 898,658 882.706 863 272 9.038 9.695 8 813 8,164 7,870 7,948 7.693 3 71 3 23 3 22 2 51 2 44 1.92 1 58 116 1 22 1 20 1.00 1.08 0 79 0 43 i
21 1
MANAGEMENT'S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION RESULTS OF OPERATIONS 1983,1.80$ in 1982 and 1 84 c in 1981. The decrease in Ihe f uel The company's financial per1ormanco improved signifi.
cost per kdowatthour generated in 1983 and 1982, as com-cantly in 1983 compared to 1982 and 1981. Net incomo after pared to 1981, is indicative of a more favorable generation mix dividends on preferred stock was $229 mdhon in 1983. $162 wdh increased nuclear generation, and a shght decrease in milhon in 1982 ana $100 mdl,on in 1981. Return on average the owrall cost of fuel consumed The reduction of fuel cost common equity for 1983 was 16.1 percent compared to 12.6 per kilowatthour generated in 1983 was due also in part to an percent in 1982 and 8 2 percent in 1981.
adjustment to nuclear fuel amortiration concerning the dis-The increase in revenues in 1983 over 1982 is due pnmanly posal of spent nuc! car fuel.
to more reahstic retad rates and a smalhncrease in total energy Depreciation and amortiration increased in 1981 and 1982 safes. The growth in retail revenues dunng 1983 reflects the over the respective preceding years, but deucased in 1983 implementation of rates which provido for penod c adjust-as compared to 1982. Whi e depreciat;on increased each l
ments based upon the company's earned return on common year due to the continued growth in depreciablo plant in equity (Rate RSE) as we1 as adjustments to recogn'zo the service, amortization decreased for 1983 as compared to placing of new generating facil. ties in service (Rato CNP). The 1982 and 1981 due to amortiration of the costs of a cancelled increaso in revenues in 1982 compared to 1981 and 1980 was nuclear generating plant being completed in 1982. The composite stra'O t-lino depreciation rate was 3 5 percent in attributable to a combinat on of rato increases, recovery of h
increased fuel and purchased energy costs through fuel and 1983. 3 0 percent in 1982 and 3 5 percent in 1981 energy ad,ustment provisions contaned in rato schedules, Vanations in incomo lav expenso resu!ted from fluctuations and sma!hncreases in energ y sa'es A 1 percent rato decrease in incomo before incomo laxes Taxes other than incomo under Rate RSE will become e"ect,ve with Apnl 1984 biltngs taxes incrossed each year since 1980 because of higher The RSE and CNP retail rate-making concepts adi not extend revenue related taxes as well as growth in property taxes beyond January 1.1985 w'thout an athrmative vote of the The alowance for funds used durin0 construction is the APSC.
est. mated debt and equity costs dunng the penod of con.
Total energy sa'es cont.nued to grew in each period, with a struction, of funds invested in the construction of plant which significant growth occumng in sa'es to nonterntonal utshties in are not recowred from customers through current rates.
1982 and 1981. Atthough tnero was a shght decrease in Whdo cash is not realized currently from such allowance. it is kdowatthour sa'es to nonterr. tonal ut+t es in 1983, the related roahicd over the service kto of the plant under the ratomaking revenues grew due to capacity charges whach are not d:rectly process through increased revenues resulting from higher related to the Iwel of energy sa'os T hese sales are expected rato baso and higher depreciation expenso. The composito to increase as a resuft of long term contracts for the salo of rato used to determino the amount of a'lowanco, net of the capacity and energy to ne'Ohbonng ut.ht:es Safos under the incomo ta x effect of the debt cost, was 9 0 percent in 1983, vanous agreements provided revenues of $92 maon in 1983.
8.4 percent in 1982 and 81 percent in 1981. The company
$90 m:lton in 1982 and $50 mnhon in 1981. The average accounts for tho incomo ta x offect of the debt cost as a chargo revenue per kdowa*thour of total sales in 1983 was 5 432 as to incomo tax orpenso associated with operations with a compared to 5.154 in 1982 and 4 68c in 1981 correspond na c redit to allowanco for debt funds used dunng Operat ng expenses continued to nso each year due to construction. The allowanco for funds used dunng construc-increases in operation and ma ntenanco expenses which tion, not of incomo taxes, as a porcent of not incomo after include offsetting reduct:ons in purchased and interchanged dividends on preferred stock was 24 2 percent in 1983,29 3 power Add i:onal operation and maintenanco espenses percent in 1982 and 64 2 porcent in 1981.
resulted from increased fuel c epenso and escalations in the ihe results of operat.ons discuzed abmo are not neces-cost of other operation expenses, which were minimi/cd by sanly indicativo of future carnings It is expected that higher the company s emphams on cost control and productivity.
operating costs and carrying chargos cn increased invest.
Purchased and interchanged power e s penso has do-ment in plant if not offset by proportionato increates in creased significantly since 1981 as a resu!! of increased operating revenues (either by penodic rato increases or nuclear and hydro power generation The negativo not increases in energy sales), wdl adversely af'oct futuro carn-purchased and interchanged power ospenso for 1983 indi-ings increases in future sales will be affected by the volume of cafes a not dehvory of power increased nuclear generation energy sa!cs to nonaffsated utikties. tho oxtent of energy occur red in 1983 and 1982 al a resul! of the placing in servico conservation practiced by customers, the elasticity of of Plant Farley Unit 2 in July 1981 and the achw;mont of high demand weather and the mto of economic growth in the ime!s of plant availabity. Increased hydro power generaton company's service area See Note 16 to the financial stato-in 1983 and 1982 reflects famrablo rainfall and the placin0 in monts for supplementary information conceming the approx-service of Harris Damin 1983 Nuc! ear pow generation imatoof octs ofinflation.
docroased in 1981 as compared to 1980 duo to Unit 1 of Plant Farley being out of servico for t. won rnonths and hydro power FINANCIAL CONDITION generation decreasing as a result of abnormally low rainfall 1.lquidity-iho decrease in 1981 of nuclear and hydro power gonoration improvement in the company's shott form liqudty potetion contributed to tho increaso in purchesod and interchanged is evidenced by the increaso of cash and fomporary cash power e apenm for 1981 as compared to 1980 Fuol cost per investments to $ 144 mdi on with no bank loans outstanding at kdowatthout generated, includ4ng SECCO. was ilde in tho end of 1983 The company has arrangornents with banks providing for $324 mdhon of credit to meet t;hort terrn cash 22
needs. All of this credit may not be utilized wthout regulatory charter for thoissuanco of additional f rst mortgage bonds approval.
and preferred stock are 2.0 and 15, respectively.
The company regained an A ratin0 on its first mortgage Capital Resources-bonds in 1983 when Moody s investors Service upgraded The company's continuing construction program to build the bond ratings to A3. This credit rating is the highest since an energy supply network wth suffcont margin of reserse 1976. Moody's also upgraded the rating on the company's capacity to ensure an adequate, economical power supply-preferred stock to baa2.
required the expend;ture of $1.4 bilkon dunn0 the three years As a result of the improved financial performance dunng 1981 through 1983. The sources of funds for construction the penod 1981 through 1983, the company continued to expend:tures are internal sources. long term debt, sales of make progress toward meeting its lon0 term goal of increas-preferred stock and capital contnbutions from The Southern ing common equity as a percent of total capitahzation. At Company.
year-end, this ratio reached 34 3 percent, compared to 32.5 The company's construction expend tures are estimated percent and 30 4 percent for 1982 and 1981, respectively.
to total $2.0 bilhon for the three years 1984 through 1936. The Consorsely. dunng the same penod the long term debt ratio construction program is subject to penod:c reven and revi'.
decreased from 59.2 percent in 1981 to 55.1 percent at the sion and construction costs incurred and commercial opera end of 1983. Howewr, the compositointerest rato on lor g-tion dates may vary from estimates because of several term debt has increased from 9.7 percent at December 31, factors, including new estimates of increased costs. revised 1980 to 9 9 percent at December 31,1983. As further load estimates and the cost of cap,tal in addition to the funds ev dence of the increa9ng cost of captal, the company's required for the construction procyam, approomately $52 annualinterest requirement on long term debt has increased milhon mil be required through the end of 1986 in connection 15.1 percent since 1980 wth matunties of first mortgage bonds and pollution control Smeral bills currently before Congress concerning acid i
obkgations and the mandatory redemption of preferred rain would make additional pollution control equipment com-stock pulsory for coal fired electnc power plants. The enactment of it is anticipated that the funds required will tm denved from iegislation mandating reductions in sulfur emismons in Ala-sources in form and quantity smlar to those used in the past-bama would substantially increase the company's capital However, in order to issue add t.onal first mortgage bonds requirements and operating costs.
and preferred stock, the company must comply with certain T he company is currently engaged in NRC mandated earnin0s coverage requirements contained in its mortgage negotiations to sell an ownorship interest of approumately G indenture and corporato charter U nder the company's mort percent in Plant Farley to A'abama Electnc Cooperative, Inc.
gago indenturo and corporate charter, the bond and pro-(AEC). and to provido transmission services to AEC and ferred stock coverages of the company at December 31.
municipal electnc distnbutors.
1983 wuro 3 33 and 1.77, respectively The min l mum cover.
age ratios under the mortgage indenture and corporate AUDITORS' REPORT To the Board of Directors of Alabama Power Company:
Wn have examined the balance sheets and statements of and such other auditing procedures as we con 9dered neces-cap takzat on of ALABAMA POWER COMPANY (an Ala-cary in the circumstances.
bama corporation and a wholly oAned subodiary of The in our opinion, the financial statements referred to atx)vo Souther n Company) as of December 31,1983 and 1982, and present fa:rly the f,nancial position of Alabama Power Com-the related statements of income, earnings retainod in the pany as of December 31,1983 and 1982, and the results ofits bu9 ness, other paid in captal and sources of funds for gross operations and the sources of funds for gross property addi.
property add tions for each of the threo years in the penod tions for the penods stated, in conformity with generally ended December 31,1983. Our enaminations were made in accepted accounting pnnciples applied on a con 9 stent accordanca wth generally accepted auditing standards and, baas.
according!y. Included such tests of the accounting records Arthur Andersen & Co Birmingham, Alabama.
February 10,1984 23
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i BALANCE SHEETS atDecember31,1983and1982 io 1983 1982 h
Assets (in Thousands) l:
UTILITY PLANT (Notes 1. 3 and 10):
l Plant in service, at original cost............
$5.376,313.
$4,979,976 Less-Accumulated provision for depreciation....,,
1,381.440 1.218,727 1
3.994,873 3.761.249' Nuclear fuel, at amortzed cost 217,793 143,767 Construction work in progress......
761.119 748,762
),,
1 4.973,785 4,653,778 j
Less-Property-related accumulated deferred income taxes (Note 1),
584.322 491,264 I
4.389.463 4.162,514 i
OTHER PROPERTY AND INVESTMENTS:
i Southern Electnc Generating Company (Note 9)..
18.003 16,400 i
Misceltaneous...
2,900 2.437.
NonutAty property, not.....
1,287 1,194 22.190 20.031 CURRENT ASSETS:
J Cash (Note 4).....
17,807 11.203 '
J Temporary cash investments, at cost 126,415 14,000 1
Rocervables-i Customer accounts receivable.....
113,768 101.059 r
Other accounts and notes receivable 16.717 12.262 i
Affhated companies.................
38,543 36.791 l
l Accumulated provision for uncollectible accounts....
(691)
(558) l Refundable federal income tax (Note 5).
13,710 22,173 1
Fossil fuel stock, at awrage cost 251,440 210,349 Matenals and supplies, at awrago cost 43,741 20,154 Prepayments.............
24,333 27,000 r
Wcation pay deferred (Note 1)......
18.123 i
663.906 461.342,
DEFERRED CHARGES:
l Debt expense, being amortized 6,847 6.948 l
Misco!!aneous 38.201 32.523 45.048 39,471
(
55.120.607
$4.683,358 '
[
i g g gm CAPITAll2ATION (Sco accompanying statements):
1 Common stxk oquity,
$1,499.909
$1.340,890 i
Preferred stock 424.400 374.400 '
..,,c...
'38.034 42,234 1
l Preferred stock subject to mandatory redemption (Note 8).
j Long term debt.
2,404.565 2.370.050 '
4.366.908 4.127.574 i
CURRENT LIABILITIES:
1 Long-term debt due within one year (Note 7)...
85,$50 59,821 i
Accounts payable-AffAated companies 48.947- ',
43,405 Oth e r..........,.................
180.055 101.458 Customer deposits...........................................
26,224 23,996.
Taxes accrued-Federal and state income (Note s)...,
38.625 s'
' 27.483 '
i Other..................................,,.................
9,099 8,731 J Interest accrued.......................
65,906 -
65.241 i
Wcabon pay accrued (Noto 1),.....................................
18,123
- l i
M i scellaneous...............,,,...........................,...
26,759 '
40.537:'
i 499.288 -
' 370'672 i
DEFERRED CREDITS. ETC.:
1 Accumulated deferred inwstment tax credits (Note 5)...,,...............
243,399 '
' 170,709 i Miscellaneous......,,.,,,,,,...............................
11.012.
14,403 254,411.
185.112
' uj I.
COMMITMENTS AND CONTINGENT MATTERS (Notes 2,3,9,10 and 12) t
.$5,120.007 -
. $4.681358
's o
I J i
The accompanying notes are an integral part of these statements.
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1 STATEIViENTS OF CAPITALIZATION a: December 31.1983 and 1982 0e t.,.
Amount letal 1983 1982 1983 1982 4
(In Thousands)
[
COMMON STOCK EOUlTY:
Common stock, par value $40 per share, authorized 6,000.000 shares, outstandn 5.608,955 shares........
$ 224.358
$ 224,358 Other paid-in capital........g 1,062,145 986,145
(
Premiurn on preferred stock (Note 8).....
1,904 1,807 i
Earnings retained in the business (Note 11)..
211.502 128.580 l
Total..
1.499.909 1,340.890 34.3 %
32.5 %
i CUMULATIVE PREFERRED STOCK (Noto 3):
l
$1 par value, authorized 27.500.000 shares-$25 stated i
capital-outstanding 3,600.000 shares-15.68%..................
40.000 40,000 l
i Ad ustable rate-11.04% at December 31,1983 l
(boto 14)....................
50,000 I
1
$100 par vafue, authonzed 3.850,000 shares, outstanding i
3,724.340 sharcs-l Senes
,?
4 4.20% to 4.52%.
41,400 41,400 j
4.60% to 4 92%.
29.000 20.000 t
i 5.96% to 8.04%.
32.000 32.000 i
j 8.16% to 9.44%......
232.000 232.000 l
l Total (annual dividend requirement-
$37,671.000).
424.400 374.400 9.7 9.1 j
Subject to mandatory todomption (Noto 8):
l 11.00% (annual dividend requirement-l l
$4,184,000).
38.034 42.234 0.9 1.0 1
LONG TERM DEBT (Noto 3):
[
First mort 0 age bonds-Matunty Intemst Ratos May 1.1983 4Ye%..
11.939 r
March 1,1984 3Va%..
17,000 17.000 June 1,1985 3Ve%
15.000 15.000 March 1,1986 3W%
13.725 13,725 i
May 1,1987 4%%.
14.500 14.500 October 1.1987 8%%..
75,000 75.000 January 1,1988 3 Pe%........,..........
23.000 23.000 1989 through 1993 4%% to 18%%.
266,135 268,135 I
1994 through 1998 4%%to7%.....
139.763 139,763 f
1999 through 2003 7W%to0%.....
528,424 528.424 i
j 2004 through 2006 8%% to 10%%.............
710.000 710.000 j
2010 and 2011 12%% to 17%%...,,,.....
322.750 325.000 lotal first mortgago bonds...
2.125.297 2,141,480'
)
Other long-term debt (Noto 6).
380,933 304,916 l
Unamortized debt premium (discount), not,........,
(18.115)
(10.531) l Total lon0 term debt (annual intorest l
j requiremont-$247,826.000)...........,....
2.490.115 2.429.871 l
Loss amount due within one year (Noto 7),,.,,....
85.550 59,821_
l Long term debt, excluding amount duo 7
within one year,,,,..,,,..
2.404.565 2.370.050 55 1 57.4 TOTAL CAPITAll2ATION.,.....,,..,,,.........,,
$4.366.908
$4.127.574 100 0 %
100.0 %
i 1.
-=
i
'l The accompanytng notes are an integral part of these statements.
)
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STATEMENTS OF INCOME for the Years Ended December 31,1983,1982 and 1981 1943 1982 1981 (19 Thousands)
OPERATING REVENUES
$1.875.608
$1.764.145
$1.594.022 OPERATING EXPENSES:
Operation-542,760 540.878 504.930 Fuel.......
Purchased and interchanged power, net (27.539) 17,042 144.910 Other 262,354 232.952 192.502 Maintenance...
164.391 149.390 135.727 Depreciation and amortization 109.231 169,753 147.581 Taxes other than incomo taxes...
107,445 96,930 86.878 Federal and stato incomo tases (Note 5)...
220.245 176 238 92.773 Total operat:ng expenses 1.438.887 1.383.189 J.305.307 OPERATING INCOME.
436,721 380.950 288.715 OTHER INCOME (EXPENSE)
Allcmanco for equity funds used dunng construction (Noto 1) 35,103 20.352 39.471 incomo from subsidiary (Noto 9) 3.088 2,412 2.531 Other, net.
0.148 5.807 4.925 Incomo beforo Interest Charges.
481.060 409.527 335.642 NTEREST CHARGES:
246.240 250.000 239.850 Interest on long term debt.
Allowance for debt funds used dunng construction (Noto 1)
(38,558)
(51,796)
(40.849)
Amortitation of debt discount. premium and ospenso, not.
985 936 871 Other interest charges 5.440 10.666 5 882 Net interest charges 214.113 210.012 199 762 NET INCOME.................
2CA947 198.915 135.800 DIVIDENDS ON PREFERRED STOCK.
37.930 30.658 36 071 NET INCOME AFTER DMDENDS ON PREFERRED STOCK
$ 229 011
$ 162.257
$ 99809 STATEMENTS OF EARNINGS RETAINED IN THE BUSINESS for the Years Ended December 31,1983,1982 and 1981 1983 1942 1991 (In thousands)
Da!anco, beginning of penod.
$ 128.500
$ 97,023
$ 119.973 Add (deduct).
Not incomo after dividends on preferred stock 229 011 102.257 99.809 Cash dividends pad on common stock.
(145.200)
(130,700)
(120.800)
Preferred stock nouanco ospense.
(889) n (1 959)
Balanco, end of penod (Noto 11)
$ 211.602
$ 128 580 97.023 STATEMENTS OF OTHER PAID.IN CAPITAL for the Years Ended Decomtwr 31,1983,1982 and 1981 1983 1942 1941 (in thousanda)
Dalance. beginning of penod.
$ 900.145
$ 908.145
$ 800,145 Cash contr bution to capital by parent company 70 000 78 000 42.000 Balanco end of penod
$ 1.062.145
$_ E 145
$ ton 14}
Tho accompanying note 1 aro an intgral part of theso statements 26
s STATEMENTS OF SOURCES OF FUNDS FOR GROSS l
PROPERTY ADDITIONS i
i
' for the 'rbars Ended December 31,1983,1982 and 1981
_ 1983 1988__
1881 (in Thousands) i FUNDS FROM OPERATIONS.
Notincomo.
$260,947
$100.015
$135.880 Add (deduct) pnncipal noncash items -
Deprociaton and amortizat on..,,..
224,650 238.604 198.977 l
l Deferred incomo taxos, net...,.
115,343 00,474 82.723 i
Debrred investment tM credts...........
105,200 118.200 29.400 l
Allowance for equity funds uted during construction....,,.
(35.103)
_(20.352)
_(3(1471)
[
077,043 001.001 407.609 Less-I a
Dividends on common stock,.
145200 130,700 120.800 i
Dividonds on prefertod stock..
37.030 30.658 36 071 1
Not funds provdod from operatons 493.907 434.643
_ 250.t08 I
1 FUNDS FROM FINANCINGS AND CAPI 7AL CONTRIBUTIONS:
Rrst mortoa00 bonds-I 275.000 Tot.1hssues........,.,
Loss retircments..
t6,189 12,000 15.000 s
Notissues retirements 10,1H9)
(l2,000) 200.000 f
Proforrod stock (...,,....)......,,
(50.000 40.000 7(0,0004.200)
(1,555)
(3,711) i Preferrod clock macquired (Noto 8).....
78,000 42.000 Capital contnbutons trem parent company.....
Proceeds from polluton control obkgatons not..
10,140 3,240 1.713 increaso 65.877 (9.384)
(19.719)
{
Docrease(decrease) in other long term debt. net.
(96 60t) j in intenm obligat ons l
Not funds provided from financings and capital contributons...
181,028 6a 301
_ 223.782 i
1 I
FUNDS PAOvlDED (REQUIRED) BY OTHER SOURCES:
$.542 (10M4)
Docroano (increaso) in temporary cash inwstmonts......,,,,,,.
(112,400)
Docrease (increaso)in other not curront assets (oncludng notes payable and lono form debt due within one Wmt)......
12,729 (40,592)
(24.313)-
Othor, not (including n40Wanco for equity funds usod during l
constructon),,,,,,
($3,718) t,643 (f,946)
)
l Not funds provdod (rocurod) tv other sourcos...........
(t SJ,390)
(33,407)
_ (3e M1) f GROSS PHOPEntY ADDITIONS (includn$: allowance for funds uted I
dunn0 constructon in the amounts of $$.349000 in 1983,
]
$47.549.000 in 1962 and $64.070,000 in 196t)
$$22d40
$46
-.7
$437,68 i--,9,437 m
.t the accompanying notes are an integral part of thew statements.
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NOTES TO FINANCIAL STATEMENTS
- 1. SulWMARY OF SIGNFICANT ACCOUNTING proprty is charged to maintenanco capnr.o. T ho cost of POLICIES:
replacements of property (exclusvo of minor items of General-property)is chargat to utility plant.
Thocompanyisaahollyowned subsidaryof TheSouthorn Allowance for Funds Used During Construction-i Company (SOU TH E RN) which is the paront company of four This allowanco is the estimated debt and equity costs i
)
operating companco, a system servico company, and dunng the penod of com.truction, of funds inwstod in tho l
Southom Electnc International. Inc. (SEI). The operat:n0 corutruction of plant which aro not recowred from customers l
compantos provido electnc utAty servico in four southeastern through current renues Whdo cash is not reali/od currentty f
i states Contracts among the companies. cowring intercon.
from such ahanco, it is reahted over the wrwco lifo of tho l
noction arranguments, interchanty) of electnc power and plant under the ratomabang process through incroaw1 joint ownership of generating facAt es, afo reputated by the revenuci rosulting from hghor rato baso and hgher i
j rederal Energy Regulatory Commisson (F E HC) or tho deprecation ouponso Tho composto rato uwt to deter.
1 Secunties and E =chango Commisson (SEC). Tho system mino the amount of alkywanco, net of tho incomo la offect of l
servro company prov<tes. at cost. tochrical arxi other the debt cost, was 0 0 porcent in 1983,0 4 gmrcont in 1982 speoalitod setwces, upon request, to SOU THERN and to and 01 percent in 1901. The company accounts for tf m l
each of the operat;ng companies SEI mar kets to ut i tes incomo tai ofWt of tho capitati/mi debt cost as a cfwgo to arxl industnar concerns tho technical o qwtso of the incomo tai on penso mnoaatal with operatons and a j
Southof n otectric systorn in planrung and Olmtahng electnc corresporxj ng credt to alk)Wanco for debt futub uwxf danng i
i pomr fachbes construction SOU THE RN is rogsstored ai a houng company orxler the lation-PutAc Uhhty Houng Company Act of 1935 (Hokt ng
'precation of ttm org nal cost of deproonblo utaty plant Company Act) and it and its submianes am nubpxt to tho in servico is proedmf uvng composto straight lino rates regulatoryprovisionsof theHounaCompany Act Tho whch appro omated 3 S percont in 1983. 3 O porcent in 1982 i
company is aiso regulated by the l~ E RC arw! the Alabama arx13 5 percent in 1901, nruf includes a factor to provido for l
PutAc Sereco Comm690n ( APSC) and f&oAs generaty the onmctml cot,t of decommisbioning nucioar factici This Accepted accounting prirWpie9 and compt'e4 with the cost, bated on decommc90ning promptfy aMor the Unit it l
l accmintiry pol oes and practices pre $ct.tn! by tho takon out of setwco,65 currently eshmatml at appro omatofy f
ronwxtivo comtmvont
$3 f 000.000 per unit at Plant F atIcy t his est mato wat tm f
Revenues-adjmted ponodcalty convdonog chang og prico kMrls and Revenuos mo includml in incomo as t>lW1 monthly to tochrdogy When property tubrct to depreonhoms retirmi cir,tomers on a cyclo bitkng bm or otherwwo dmpm1 of in the notmal courso of tunms.
l 4
I FuelCette-its cmt, togethor with its cost of tornovri bilmlya@. 6s l
f uni cost 1 are ospenmi n$ tho fucht comumed T ho charumf lo tho accumuta'ml provmon for deprecaton company recovern fuel costs and twt purchaw I onorgy Pension Coett-cost 1 through fuel co,t recowry mahanmmq which prowdo Iho comparty he a defirwnj botief t, trustmxi atw1 for adjustmonts at necomry to rofext incroa*.oq or non conthbutory pen 900 plan whdt cworn Abstantmily all i
decrea*.oiin guch cotts texjutarempitseos ihopolicyof thecompanyistofurxf each j
Sutr.tnluont to April 1,1901 the enactment dato of tho year o accrum! gmnvon cmt for tho : Ain which amountml to i
fhicinar Wat.to Puhey Act of 1962 the chargot to twictear
$30 003 000 in 1981 $2fl,105 000in 1982 arxl $20.692,000 funi oqmtu includo tho amort:/ation of the cmt of nidcar in 100 t. Of thew wreant9. $?O CH2 000 in 1901 fLM arH! H cha'go equal to or4 mdl(vr bAOMit' hour of
$ 18,901.000 iri 1902 arxl $10 829 000 in 1OSI acto chargrx1 l
nudoat gnneralon, for portrwmnt dsixr,al of spent tuol to oporatirg onminos, and fim balarWA wa4 Charyxl to Prior to 4p01 f,1981 the cost of nuclear foot, irdudng corntruct on mxj other accounty Accumulatallenmon l
the mtimaW1 cmt of (mtmaretit d,tmal of siwnt fool was tonot t informahon as of tho valuatiott daton (January 1 l
amortitod to fuct oemo ba;mi on the guant.tv of heat of oactt year)bliows i
produced for poneration of Hectne enerov Such amotti/n ggs tgg ton was $$1,407,000 in 1983 $01.047,000 in 1902 and
$42.3W 000 rn 1901.
A"4h"'P'"*"'V"k"O' II" I h0#**h)
N I
pondnQ ppf fflarmrit OtpO9 hor 1 of lho tporit fuel. 90%oont f
I*""U8 ^
9toram capauty is prownt!y hwable at Plant Iaikiy for Wstod
$202 M 111S M I
storam et stmnt fuehnto 1992 and 2010 for Unit Nm t am12,
"#d"d ',
AN rnsprx,twedy Ihe company hat raeved a hconto from tho futal
$?O'i W.0
$114 042 i
f hadnar lW;tatory Commiwon (NHC) fo ltittall higher
{
capaaty stoman racks at Plant Ia> toy Unit No 1, wheli w,Il g yn,my y,n g,n g l
l rovido cumcent vorago of spont fimhnto 2001.
otr,,go,n n w,m yg,n i
N" detottfuniry actuanal l
UtAty d4ntitstataf atorkJnalcmt Got.hcostindudot p,n,ng yn,uo of apphcable ne ithinisttatwe atMj unnntat co9tt p4rr Al int fni accumuWmlpiar1 cmte such a potmons, taeet and other i oreM9 wxt th" Imr+Mn n%
n%
i,,
mtittiatodemtof funchumiduntycori9trur_f.on ibecmf of
-'-~
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ftwntenwico, repa.rt Nw1 repl* ortmnt4 of ff knor stotg of Not Mwt1hlable futi n nefits,,,,
$10$ flau
$)in 111 g
p()
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Tho actuanal present va!uo of accumulated plan berufits
- 3. CONSTRUCTION PLAN, FINANCING AND was determined on tho bass of accrued benef ts as of FUEL COMMITMENTS:
l January 1 of the respectiw years, whereas, the plan is furxkx1 Construction Plan-l based on the premise that the plan will cont.nue in c ostence, The company's estimated gross property acht,tions, as which requires that futurmvents be considered Tho of October 1983 amounted to $G97 mdlion in 1984, $631 unfunded poor service cost under the plan and supplomontal rnillion in 1985 arxt $043 mdinn in 1986 These estimates contracts amounted to approumately $82,980,000 at includo allowanco for funds ur.ed dunn0 construction, not of December 31,1983 and is teng amot12ted owr a pennd of incomo t.n es. T he constr uction program is subject to ponode i
approumately 15 years review and revision, and actual construction costs incurred 1
l income hines-and commercial oporation dates may vary from estima'os I
Tho company provides deforred incomo lauos for all because of sowfal factors includin0 new estimatos of I
incomo la 5 timing d,tferences as permit'ed tyy the appropnato increauxi costi revised load estimates and the cost of captal,
]
rogulatory agencies Investment ta a crod ts utbod aro Financing-t j
deferrod and amorttlod over the averago liws of the related iho ability of the company to car ty out its construction plan I
property. Proveons for property related de' erred incomo deperxis on the amount of furxh generated internalfy ark 1 tho t.ucsrottectconsumptionof partof theva'uoof thoplantand futxfs it can ramo t>/ owtotnal financir,g The company's j
equ!pment to whch they roiato Consequently. the related pnmary sourcoo of enternal financing are sa'os of fin,t accumulatM1 deferred incomo taiM is a vaMation ter.erw mortgigo borxis arxi preferred stock to the public, recotpt of i
deducted from the piant investment in tho Balanco Snects adttmonal paid in capital from SOU T H ERN, salo of pollution.
Other deferred incomo tases a<o includod in taios accrued control rewnuo txands try public authorSos and leasino of i
T he company is included in the conschdated federahncomo nuclear matenal Panj in capitahs planned to bo provulod, to i
tai return of SOUTHERN (See Noto 5) the ei tent pos9blo, by SOU T HC RN from the salo of additional Vocation Pay-common stock in amounM and at t.mm not yet determined T ho company's employees cam their vacation in one year in order to mun nddtonal timt mortgago borxh arxi and tako it in tho subsequent War in order to recognito pretorred stock, the company must comply with cortain l
properly this liabAty, the company in 1983 recordod oarnings cowra00 requirements containmf in iN mortgago l
l
$10.123 000 as Vacat on pay nectuod in tho Da!anco Sheets 6ndanturo and corporato chartor. T he most to+,toct vo of thow l
A corresporvling assot repec3onhng chargeal>to amounts is provnMor $ requim, for tho isnuanco of add $orul first f
IMod as Wcation Day deferrml en the Balanco Shmti in mortoago bornit that beforo incomo tat earnings, as 1904, approomatoly 64 porcent of the Cost of vacations will defined, cMr pro forma annuahntoroSt Omtgos or1 f
I bo o a pont.nd and the batar.co w 11 tm cha'ged to construct on out.tanding first mo tgago bonds at least feco, and for l
nod other accounb muanto of nddtsonal preferrud t.tock, that grons incomo
{
availablo for interir,t cowr pro forma ant uahntorost chargns i
and pro'orrod stock divKforu h nt least one nrxj one half timos I
t l
- 2. MATE MATTERS:
Thmo comragni for fin.t mortango bonds and for om'orrms l
l In Novembnr 1982, the APSC ndoptmi rota.I ra?on t,tock for tho year endod Decomtmf 31, I983, wom 3 33 and J
which twdo for ponodc ndgtmenh b.nmi upon the 171, impoctwly
(
cornpany's carred roturn on common Ml+ty The ratos nko FuelComm6tmente=
i i
provido for ndmtments to recognito the placing of rxw to tuppty a myt on of tho fuel mouimmenh obb onnorahng generat.ny faal.t m itt torvico On Sentombor 10.1901 the plants the company has ontorod into various lang term SuptomoCourtof Alabamaa"irmnRhoordersof the APSC commitmonteur the pmcuromont of fowl nrul nuclear fuob a
i a luohng tho Iww rams A 2 porcent trymuo inctcaw we In moe,t cem toch contrach contain provMions for poco m1do 0"octw in February 1983. and n 10 percent remnuo mentationi minimum producton lemis nrw I other financini increme wont into oftoct in Juno 19R1 whch recogrwod the commitmonh in ndd$on, contrach with cortain coal con-r commeroal ope'abon of Harm Dam No adjustmont wu tractors requito reimbursortmnt or purchmo, at r et book i
enwedin Oc toter 1983 of Janoyy 1984 valuo. of the inwstrnents in miam or equipment upon On March 1.1963, the company filed Mth tho f I IC n formination of the contract Addtional commitmonh for coal whoinMio rn'n rnlyo%t to tricrome trwoum iry Appro4 And for nucloat fuol wilt 110 toqutfod in thG futuro lo supidy tho matsy $6 400.000 nonotty The F LHC ntloed tho new comptny's fuelneeds ratm to be Of ace 1into oftoct, sub nct to rofund on Octoter 0, i
19R) Such tmW ra!M incroawf oporating remnum and rmt itxu no t 9 nopto nimatoty $ 1.10/1000 ntxl S $82 000. fmpoc>
- 4. NOTtt PAYASLE To BANNSt 14 in tun] A tottwment nornament providng for n $1,1 At Decomtmr 3 t 1903. the company had linos of umu i
l rnilhon nhouahnerows to tho tort pany'B rioctr c cooperatem wth lianu tntahna npproom#nty $324,382 000 0f *hich j
cmkaters *m npprowd t ry trm I t l@n f etvoari 964. Tho
$200 000.000 reptmorib comm>troenn obtarrmd orxlor rn.
1 14 0 mAon y/ tion of tho rmlun tmfincro.r,o npl+cablo to vWrvj erm M ngtontt mnts with banks outwlo its horvico nma tho d iropany n mut9c<palcur,tomert fornainilmew linQ bnfotrl Thovt corfim ttf ority corroritty terminato Aphi 30,1987, the i
the f[f C HQfromenh rNlutto tho p%rnent of n Ufhtnitmord fnn i eMI upor1 the unmrx! p;tt on of the commitmonts wtuch, in the caut of PQ t Of tho noroomonh nrid nt tho olhon Of tho h
N i
Company, rnry bo offset in whole or in part by the mainto-incomo t.1x refutul of $1.173.000 as final notticment for the nance of tMlances with the respect vo bank icar endal December 31.1977. Iho>o refunds ato duo to Arrangements w1th respect to the $124 382.000 remairing the company's utili/ation of invet,tment tai crud ta in lines of cred t e spiro at vanous times during 1984 arxhn SOU T Hi~RNi consolidatal tax return atut tho wtt!oment of cortan cases prwido for averago annual compensating tho Interna' %Nonuo Serwco audit for the year 107 /,
balances. Because the arrangoments ato based on an lhe prmoon for de er red incomo taica roWM pomanly awrage tulanco, tt'q cornpany does not con 9 der any of its from the company 1 tax deduction for accelerain1 methods cash balances to be restncted as of any tpeofic dato of depreaaton and other wnto offs of property coSM, a n includ.ng compensating tMI nnces, the company has main-prouded for by the itscorno tax lan tring significant!y taned operating account balanceton tunks mera< 3 ng g' eater than the book deptocution of such cosh Other appro omately $5.552.000 in 1983 and $ 7.591.000 in 1902 defoned incomo t.n cs ato prowded for certain cosh or resonoo1 that are nux,Insta l for incorno tax porpows in d.defent penods than for book purpot.cs locomo taies
- 5. INCOME TAXES:
deterred in pnot wars aro rweronI(enxi ted)Imncomo A deta.I of the total federal and stato incomo ta s prowtar 1 when t ook deptcoahon of property conh c cced1 the it set forth t =AM rela %1 ta < deduct.ons or when other timing d4fterencM
""M" 1983 1982 1931 T he total orovinion for federahncomo tai as a porcent of (In Ihou%1 fids) ggggng ppforo fedef alihcof no la a W Pi e'W thatI the blatutory l
Total prows 20n for bierahncomo tan rato for tho tokw no rea,orm incomo taves 1983 1982 1941 federal-
[Fett vo fedorahncorno la <
Cunenttn.tvat*>
,,,e m reported 43 3 % 450'ha 39(Bb (re'urtlatAe)
$ (9984) $(17 6TL) $(1/ 791) hoduct onon tat o' pef 60 rr r t year 111.413 69 0G$
00.001 hn g
asen.ai ct neo, s,.honwmnt oHho yeas (cred t)
(3 163) f 20 %2)
(9.100) o&ned,n-t,~ni
,,,,o,,m,,,,,,a tan cent M 10$ ?OO ilti200
?1400 d @ N w n' M on 34 20 01 2014r 0 1610m n1 1n0 other 17 10 13 Dat"~
tr'ettwo fedoralincorno t.H Cu' rent!v paraun 10009 12 070 1.9 W rgn tytuto r"ect of t,rn,ng De'er red "
d Fn'once1 48 4 40 0 49 0 Curront svar 7.460
$ 747 5.010 Cormt t rewaun for Wher,afofiner tr. ore,a of poor ye,yg yeart(crod't)
_ j%I) _ (1 II0).
(GI4) tmtng(!Herorn.09 hot i f oo?
16 041
/ 101 IVWou h rnnrtVed for Utat Nt 458 1/9 07/
90 291 auoumng and ratomahng Lou ncorno taics po'00*,o; -
r h@pl D
'"Ofrt" n 'fi d"PfW uher inu>rno 1 ?!3 2HM l1010
'"D"U " d"d ratm (2 ?)
(? 0) 00)
I ederal and 4tato
- ognn, p) m incomo ta.ou hatuni to opreaborig
$M)24$ $1/G ?Ul $ 4) 173 A'"b' Y '" 8#N' "" U "tM m~g rgo an fyq dn on, 40 (rn, t_ nun;f 21 tr:: ut iho CDrepany relnWtl H n k'f alinCof no fat re'unf l bl I
$H 9 / / 000 tur the par enon i Docomt d 11,1912. nnd hai Dotoon Uncer nont ta v ( rn t ti arn amortved wor tho Mo narum! a redorni of fn forat 'nux no la e oe, for 19H I of of thn + uni propo'1/ w.th wh amortJabon npptn1 m n
$1? M f.000 T he terop ely ba9 aho rocoldod a fedoral vedit to redi, o depter noon in tho Ddomor itmf fru orna Ibew trn its arnoun%Ilo l0 hift (O)irt 14n ) $1 N0 000 in 19n2 anI$1Fri 00rbn 1001 At Dov omier 31.1981, irt,mtmoni la e t rov I t9 total nu appru eimatel y $1 tn 600 000 eepr<r(J af vanoo9 tertici riannq 191f ami 1910 bmo hot t wo utive l ani l mo nohblo to rodoto ta loraht wr no ta a n9 papt4infuturoynv9 30
e 1
- 4. OTHER LONG TERM DEST:
Tho not took valuc ot eaptaleod ioanos incitxht n ubkty Dotah of otner long term debt mo as fol!cm plant in servico wan $142.321,000 nrxl $111,531,000 nt l
December 31' nts 3L M3 and W2, hmMy The company enterochnto a contmet eth tho Detwtment 1983 1982 of Enorny(DOC)for the disionalof r4mnt nidur fool Urxler (in Thousarxh) tho terms of the contract, DOE wil prowto den)mV facetics Obloeonsincurrmiincor'nechon tmginning in 1000 pinsuant to the contract, a ono tvno feo withthesaloof taiexompt applicablo to aptnl rwiclear fuel uimi for nuclear genoration pollubon contrd rewnue borxh poor to Aprd 7,1983 it owed I;y the company Such feo by public author $cs-amounts to $33 010.000 nrx1 is patatM to DOC orxler orm Decomtre 1.1083, 7 850 o
-S 600 of the following thrmt options, to bo estctod by tf m company December 1,1984,8 %
3.600 3.500 poor to Juno 13.1 DOS (1) sando paymont pnor to Juno 30.
Docomtwr 1,1995 and 2004 1085 wth no intoro' t. G) ningio ntiftmnt poor to the f rat (duo sormily). 0% and D'. a%.,
t8.700 to 700 dolwr, of tgmnt nu(.loar fisd to the depo $al facAty, wth 2003 2013,0%t00%%.
10& 450 175 0$0 interest nt u S fronsury obloeons taten accruirN from t ow funds on depost eth Apr A 7,1003 to dato of pa,tnent or (3) forty quartotty pay-trusteos
__ 31 421 10 $61 ritonts wth tho lm,t such htyttiont occuthng not lalor than Ifm 181p?9 179 ong dato of fbst dolwry, wth inicrott nt U S fttM1ufy obiotone intosonthounput talatronccruityfrom Abyd f,1963 then
$320 Wm noWtmOn Mwng ng Won t
n of t Nucient fool 134.300 100 LOT
""[
ht gr@o nond nWurk's W um Mcles 10 024 12 074 panyhthotlong vfm(kier@ IDM wo Mh Ofht o buildngi 10,174 10 314
$64.300 000 in 1984. $43.524 000 m 1905, $2f1652.000 6n SRO,Mmn W7 And 57,2Mmn W f6 11 m fim.
___3 141 704 1;P, n?r uno nt s Ku utn
- 7. LONG TERM DEST DUE WITHIN m-wm ONE M pollutioti cofitrol obl4 Ann 9 toDfmont instalment put.
bmt mott4Nn t# wit matt #inQ m 1904 Whj 14M nmouftt chav'i ot pdlubon control fac4t.os f.nancm 3 try furw n tiones to lI 7 000 000 ntyJ $11.019000, nq u twf( Othot lona ff0ff14foilf/ put Ac autnoht ot u kwfxio borwh The form dotii nwofitto m tN 4 w1d 10M atrx>unt kil64 WI)00 company is fMptfxi to mak o afinual pt:(met,tt suff<><snt for nml 14 f.M2 000, toq ettety. wxi conw.ts pritfur4 of tf m authotSo9 to meet phnc>p4 mk1inforest terproment1 of enpt4i/mi nt(loat funl lonut ot doenne bKh tof MM Wth fe4)oCl to $32 600,000 of much pullubort.
Um Witud f1tst etwigaget bo#wi nitihtio furxt rtxprevtim3t centfulotAptions tf m cuepany ho nuthonhcatml Aty3 tjuo on Jurist 1 19 of tet l)of cofit 6f (fin nourt*Q4ftp niti(hvil bt (19 wtmilo the truttmi n 14 o ponc pal amouht of f est t ofth. Othot than infundny toxit nuttenfien%I prior to 1
fnottSuj9 trn!4 M tecuht/ ot ih of A0ahone utxint the Janumy 1 of wh PW Ihm torprof twnt nmouf Afg to f
6nst* tent putdmm nyrooments No pnnc* pal or informt on
$24 201 R)06n iM4 ntwil24.On1000 in 1M1 may Ie l
If twa f>tt t rtr>fluago totxh a tvrvat do or4% ntal unht a f*'a'l lN ihn d"I Wl 08 f#h, fund M"llondi If
- da**fy d?fauft occuf 4 on tho ensf4lment puttheo agroomttfitt d UnfWh f4*lAcilliy nuthonttated lof toch purpobo nQeft91 The company hat captahhNilon4%j fK#JsMf matond afid unfufhhlprO(offy adl'ho% of ncomt>theorithetor)f Tim istof ahi the reinted Icawi et Acaton* One nrrnnonenent 1904 6'nhnu forki fe' N'"tient in to t we teemi by the <>po+t
$fthklo9 fut the tyfftont of inintml monthly,in advanct).
D104*U !Of tim fMICff' phon of $4 200 000 prittitml wnount of W/Mj of1tht!comfftofci4 lWmf fato. M defanmi plug j $
IM)fWh triI et#unty 1964 afwl the dedwty bl a t#)fMi nQ$nti twennt At ifm otti of 1901 $10 471.000 *ng car,tarwHy at untumbi prof
- tty adelont f ho iW1 wninfy fund terp*
n ra'n of 10 80 intcont inkt suctiloato fm other stargo.
mont *M Wdad ty tf m dotwt of ceh. the rem 19 eon of ffionf# pt(hkin fof tho 04(ffwnt of if9pfo%t ni vntytnQ htfing
$4 250 000 cubfamMQ tex 11 wid the thy of a botki ik0nndant on f 4*ont tenctml by the cettip*1y ltutt) (yggg Wc#y Authent'Cahlluf hu;h pufpoW1 ofImnia/*lat/oundof thoaffantynmoriti Pontipal atNNota fn Atandf 9 nt the end of 19M Wom $22,007 000 ntw13t4123 I.000 #th efb$titA$ f alot irtfudific apt dicatio fr*t awf adnu 1010 letcont htxl 10 62 pnteent, toymc4 hmtv Phnop4 94ymonto wo tr=sueml utyMt the attnny fnontq betwj on the cott of h##W lNrtwXt
. If m cott,pany bM akio f Apt fumf cuttam veif mio,6fkn (MOfd. (*MOmont afid Ottmf lace 9 Monthly phet pal DJ(ifionta ph sg ifitettsg! mo imprtgl god nj Dngimbot 3 j, 190, thtt ihlo'ont fnio *n4 t 130 paw ( et11 fut vetuden nNJ 0 $imtumtlof ti4eluidnut f
31
7 Il
+
l E. PREPElWIE0 STOCK SUSJECT To tauxhno et watino o nionw anunh in tho Stenenh of i
MANDATOMY REDEMPTION:
huvo 4
The 11 percent ptvertod stock is sotvet to a cunmtmo i
$#nking futxl tml et fg the) Cornpativ to tsxteorn or purdWo
& Pmt SALE OF M MTEREST t
annua:ty 21000 uwes ($2.$00 0m of tho stoo t h" W UTILITY PLANil l
company tus tho opton to douuo two notolet of uwe9 An gop, o, an Appea, poa,d of tho N40 in on not.tnnt i
teckvinnhn #1v ono ytur tgnning Janusy 1,1980 The
,m tegn ni anuhtum trig voimxt on pio NHC l
{
t.tock is twiconuHo for ninhno furst pennon at $ 1(U lw$t kone for hwst i oncy whidum p'o tie ruppvty to ut an l
l thNo l dut accrumi dvvrtwin 10 tho tlato d tm MnOt01 Ibn c,anct9pp inMed of appuntnatoly G P'rtenlin hvit i MWy g
l, cornauny reaasuvext 42 000 tonxM in 19ftl,1$ $$0 thNes to Alabann L Wtric Coop >tdmt. Inc (Al C). atx1 to pttwlo in 19N mx137,110 gwei dutitxt 1931 iho dw" ttmmwin notvicco to Al C mvi nuuviul oh tre dm reacquited dono01Dftl tu)nther mitt WWm rtWludext in it Idn fle tornpety M enuaplin rugotiabotn wth AlC i
1982, wofo uunilo futdy tho 194 4 &hhirN futxt tm pronmnt go, Msth nWo f
wx1 the torn 4tung 19 Rio Vwm ** lm utni kwvd Mtaf &
hod of ttte 1985 tequitetDont Ifm 04nt on te,*MpWT M of H
$9IdX)0 W119tu $1/2 000 in 1982 afwi Wil (x10 451901 10MWWMTMTM!
umiudmi t tn nwnon on ectenmum n4 emton tho o niwo owtat cont"a leo" *ht'""*'
umco needC y s e-iw n - na m n ~ n w a h co""o v "* "
- l l
fronttw of thnso ymon9 puolit the ottment of rat i.
e i
d odntw h Oti cot tif tkyn ttor h (o s( ept tf oo pu l t uncuttentt/
l
- 9. WVESTMENT W J0WTLY OWNEO w th um tm e ld d n cndt raPfakw*dmtoon L60 a"o*0 l
PACILITIESI in em *'en tetm i ca"*N9 "" '* d ahe "1 "'t"al M W)
I 1ho Conyuny mkI orm of '!g a"Moe Osv04 Ptet Dnei notMikfe,x!ct w h on tho outttim laxj IMet tml kta h CornpV1y (GE Of lOIA) (un ce t ci1/ an ot it m tmitt vu l.ng t ha n";tra tdi attuwit oni to ltu 110 fxo nt On telmf 31, (Apla! 4 toc k Of Duittmtn [ Wind Ot'no'at (Vj CatPDV1y 1M l in Ml!HM Var 049 4Uhd d IIO EMI'anY 9 OUb l
(SLOCO). Atwh ohm t'wtre unmtat tN wib *mi a h4
'texknd fat ifWt0*F lx"h W""n*"I b tt* l"*d4 d i
tahica vp/ Of 1019 040 haowatts b.ptme wth am coronanh routdty the lu," cot d uVt dwa lomlM l
omi ttansttnwon f.vmt m tho rapar4 of tfec untm o ston,n stu b Hww ot* tim bnis d iah uv' hants l
i>W1mlu4ty to the cotopany a M1Of OfiO' A ututot n oink v.t the tg &p wt o ent of eat nin41 triann hn tho lusitme at I
i
..nn,y.n w i n<n n wn m.,# nnmim nn curi-auW=moanelu mnidm+
r
%4/t cot ilO ptWMlo lot tim (1* tat tN b8P*uM ta*M dwlefwh Ott Wett Ut %M I
infome,t poponw mwl n tetsn spi etutv. A ottet or nd h
GLOCo hat any tonw;tv amleteut naateo th"ac a E NUCLEM WSUMNCE men 4.u. d -,o ~ r w -iuo m uone mo ^ntensi Ad roona mnnvy run 4
19tU $ /1 d30 MXhn 19n2 ani1 $f0 $/0 (D)in hnI ww14 hm nu'notnont9 of a Hfitviy *th the f 44C of ut.h. k C* lt**
)
Hrim bl en Puttbasmimwlititotth4Nntf D#r t hot a th" o
Mh po Moumut*wA uvit uidtlpotti al#f(nn9tN fften v
h i
Lt#ntienH 0htwdo I
g9 % sy n ggntg o ng ap, ope y,ygnoeps in mki-ton tho o vt Dahr hen Qu Ve'otxj WWKl'idtWf p w p*4 f bo Ad WM b $W)(0) D00 N Hic bl*W/
1 ff w$ 0No iNyi of St GCO m+t a+t stattmht 4No a.pem tm' d thnm Wwt etWd who ttun a 40@ fuNt (nudent Iw h i
lot itm lHtLtMtp of totbn p!uhod COnth)i;k J lo9 At tod# M the NnpatY9 DM bS ldN d & WMutml nQadid flN9
]
LLOCO 4 untWatmQ ohh heut t to Ahn h $?O 000 000 i,M 6tv b n ina eunu n d $ ty) 00) MC by otvvo itnotvro 1
voupwynonnid s u on m aan w oitonthf e l
ta=towett GLOhatA bai no'emllo tovtitusc trio
,,, mn4 4n#n ena,nt us tonn,ui,tionnexnna forwu st l
n p,#,3 g,y au s,m,,,, ng,pg,,ng #tn ino n#,0 in tho men,vn,,ro,aa n~, d on moot m,,1 d a
,m,,,,n,,nnn a,y mnneomt,,,
trenep it Wity to th then en 4 WidW (WWW"O d tk a h d 9,ny,n y,, a n,,itty the u mpVry could i vs awmmi Of t W l
LLOCO d tt m etttihiny m tWWJ ulon to thr o uh btytenit g$ yo ng pnt,ukhn # m h t.c onw= Derb ogief ahl i
l ut** eu ouN*dV t g h,Hw d n wo #mn i10 RU (W) to i 45 paa lin att/
Amm,4ei-mun,om ma-duOeO o,,,,%,, on tp,,,,w d,,
n,,,n d w,,,,;,,,,,
3 l
comamid tao 000 un d ow< wxl $t t ma an ofimy
.o,,,, y,o mpany m An,. wmns a ina.cun of
[
tottn Ont 4 t/1 *bdi Wm Wmwtaht**t tmsptent 4
$10 OuMAC lof nny tinJ1 int *ht. tot exit f110to !!W1
$4 04)(x41htuouh Drx ovntof 31, pint nt 4C0 pvi t,'O 4 x)(7X) h bo pani e sty ove F af i
doh,dmns e,h,w o ano in im stOcond 3,* m n p y y o,,,, son, d n oo., u s ua t,n w l I
dvetwh btSty l) t110 010 en tel n ##f m of $0110 OW INVQ 4 Udu4 HWvef estaH 9hbl b MtMdn prof Wf v i
Ihet mnpyty suvluno of <t4 n%Mo= Mmwp hwf dynmp in%t* a 80 44 *nn el On in INM UlX) MO lot j
Cott ovey, wt as tchnhtwt mtttv/t ut tf
- pteintim bf ffireteri tulv5 (rt Wahxj faM8m tim et rt4wty M I
fdppttrotatul4QlW(tStd fPt(sy hytd/ a MXJ ul))hh thWj g
g44 g ggg ggggg g gg gppg MoWtt elndtC ipnotMvxj pahl #10'r*$ 4 CHunt/ AlatWen py;g,w gp tp,ygntgpgii,ljnjhnlq thotttbpWtyn tha tivil wn p* ml d eaf vn o e 1WM *willo rubpan(e
,n3,,,rmin awowf W 4 m khb l b apyn e WfwWp invenitted nllkushlef 31 tortlnttvunblH %% f31080 gy,(g; no p,y p sty gg fle Wt pyty n WW4 Of e ePvm9 e indw hh4 the tWN*
Aden' sin ##y Wm totnpant he Mt3 **ff dThnUn N80ioe4 wh(f t ( of rnntty pac k owmp on to 140 Of M 000 for im9tm et1 Cetmq Of U#8 $Y30.000 000 NML UNot4081 Ih4 y
l DecotOmonFxt* R yt te hll8/ NukW i ltttivilMidahtM
I Lmtal(NCILL a mutuahnstner arx1 Amencan Noctear
- 16. SUPPLEMENTARYINFORMATION
)
Insureft. Mutual Atomic Energy LiaboiN underanters Thew CONCERNING THE EFFECTS OF mAe9 cowr txth decontam naton and dehns rermw CHANOING PMICES (UNAUDITED):
m wohn meew oropef ty dam.no NL it.6o com tho T ho folkwng supptor mint.vy informato# i concer t ang tho i
outracoth AtKil At.nskilmhnctstalin othnity felticortusnt effects of thaty t10 pocos m prewrital 6f t AcCof d.vN o W:th f xwt (funna a prolofMyx1 accgfontal outago at a fnemtre 4 tho general concepts tot forth in f irianciat Accoufiting i
nuc' ear givit the cornpany m imivn1 a(p mt increami Stmut.pds Boat (f Slaternent No 31 a,rtaxlitalto refktt tho I
costi of teWact.witnf lx>wr an.Vi ntnount up to $2.500 000 oconomic efkiets nege,ed ott the coreguny t4y r Mutatory I
porWeektttxtrrm :0 *o +$ tect thc out.uy%ir ono year ntxt nothorities it tJioukit us wed ai an eshttiato of tho npoton up to $1 ?$0.000 pit work for tho weerx! par Ututer auch nu'o ethicts chr Ailion, father than a procno fneampo of that NLil poben mortitmen wo sutyct to unments if Corntant ddtv amounts regnetent hntoral cor.tutahl i
IowM e e eciv i the accumo!ated futxthivadat lo la the ititauter in term % o' ddits of ex p ul putd w4ng Iw wf, at ittoasurin!
I under thaWcy Iho prewn! maottnam awwments for the by thoConnumer prolrxlet for AllUrtianComtalors Cut.
corfigunt ot progertv damago m At tv l') 000 000 afxi rent t ost anumnts reflect the chantymn ttvuf,c prKm of t
l approeimatoty 115 200 000 urutof tho rep!acertmnt pet pLvit tforn tho dato the gtint wat anprmi to tho ptetent i
j ptC / pit pokey ymt in oth tee if my df'er frot n conNant ddlar amounts to tho oitent that qveAc prics tumnocawlinato of low rapnfty than tf
- l usumhatoohnr ton Deaerentet*#plantwauteW
- 13. ASSETS SUBJECT TO UEN:
a
""* * *0 "dd""*# d"d "Yd"' "*"0 "'"
"'"""}'hitman itxto e of public Utahty Cormtnetton Cmt1 i
tho comtuny a roodgaoo. nuvnonant atwi nopow Han l
l montm 1, gecuted too fe t too't.D 7$ t a va f # k*un I t y the l
company e ondtutm a de t fLru hen oniutstantsy an o, Cunont cost dom hof naam4 repretent tho repucement i
tfm compriy e tard pros vety and fem <"hiwa
'""'"' "'"O D'*'"('* C"D4ty tmcauw the utdity ( Avit l
in r)nt onpoctex1 to IMt roph( mj pfeelwty 6n kirHl
[
l 1 ho irci anula?mi ptomott for deprecuten for cur rent
(
l
- 14. ADJUSTABLE MATE PREFEMMED STOCK:
ctni wauteorniiy nor9no for endi mant oaw of l
tbe enthpany mund ? (W 000 WWm of Ad,ostavo HNo prant the gnmo por contacy, ntit omh.p that o mtn l i eteen i
Claw A rm'ortni hk (1MW e$n Scownt er MO trow ount and accumulatmi nhumort for depfcoaton. on n t
Ch n statmltap,tal of $23 pd Vwo iho appbcablo ti edeful im.totGl ban to the m fr ntod Itint data Dop'N tatof1
{
tTo(tOuth18$d fd tho fm#c1,t infoQ'al fttutt. do of 1O pt$teent) p e p$f so ht toff t (nothmh W M dotof nhnm) by ap(dyog tfx?
l for eat.h delotvl gerut. deWmonbn advant o of 40( h cor rnnt depentiat,on f atm to the fey et Im1 try to e txt ( Avil genod will t wi(a) 19 f ettent lem than (t i tim hqhost of tho amounti fo'latot t by tho nmotti/aton ohnymtroent ta e
(
f pot onrxiftilhteriethWttiO 6 Irra 4dy U ll Hato th81 U $
cretl tg Whi(Ji Atto fif%t adjygtod 10 g/of agr} 196 ) dolQt i
twof / on War Comtant MNu' f 4#o *x1 #m U S nmmenh by year of mt4 ton f
t t'ewey fet/ ear Comtant MSur ty Ha'o Htww tho Iru:reaw4 of docreawun tho tmti of fuel No fm3NfWest Y
{
apt ih( at do dmdoth I f aM foi eny (> vnlot n 1 (mnal thall in fio in tevntu jo1 tht(Joyti epnf cibnn bl fusd cod rett wty inMl>A
{
(Wnt l ss tr** Inti 120 poh ont !=9 annten or tro#of than tvstrig Goth amriorits of'e( tcroty me rnwnblos nt guettiim 1170 Jettnnt pot annum the d edmvi tfo nt Docof otmf frotn tuttrttmrt Ibetofoto. tah ihtteaw9 0t dwfoawq wo i
l 31, tN) WM i104 totcont Dot annisti ntx1 m 1I 30 s *-et ont tiot erv>ui k= l iti enctaritt but iratoa< l ato treat <w I m ttint +tary r
(mf nonue n fut the htt! Quadef of f M i ntwh of leal 6 tot ind s ne t.u c a ponw wai not ad,utal j
intauw chly bmtotM co*.h mo dodir tibio fo titute la a r
- 15. QUAMfERLY PINANCIAL DATA P"'l *
(UNAUOffED)I U"d"' * '#"""h"0 D'"Chl'd l N 'h" hN'#"'"'V C""'
I Gurnen sitext tNmWty fcNuf tliu bt I'M1 mul 1%2 inecoq b *Mh the company a hub ni uh the hMoncal i
l wn gg pg%g unt of l tvit n ferawf abio vi tetxmn ni ttoprevabon, ext gnq,,,
plan 0n t#st tutw m hf futa i to ond nat cmt Ihotobto. tha cost n9efDvdnndi d itant Matelin tennt d conMant Of*t (# curtent (nst that 6n f #m th* god b cuMonmnifho annunt d put winanco
- M""" "* MU d U"d O dN " ""' I#"""i
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$ 99 A0f
$49 611 itwnti sy rmutton o lom ot putthanu p et donty pontw h hm ofwi 414 O/2 9/bori 47314 of enfl#un t ora en tho amount of ( n41 fttnimbo the futuro 6
1hd i f,n f.4ts1 141 4//
U1142 k# tievntomt *d pt#dwo Im4 Corwrw4 idlif y notviary j
ioutth 4 in i f1 no 441 4% tud nal 4tc9. pr ehahty lut y Hf n d 4;l tmuttun a n*n i eu re tie
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i net 1414%16
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140 h44 kunkant n'nountuiNono tonn dod oiMux nna Wo tho F.n ufwl 401131 M4 0/0 20 ?ta uw of drU tin *vshd 4dr od pio nHed of #in M9 0n #14 t h,td f00 nn) 114 tut 012ra U Wfennt19t< Old kt t**tt re wevo rvi ndw hab hubi tws (outth 41 Moi) 04 4n0 ll Ill N
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5 STATEMENT OF INCOME ADJUSTED FOR CHANGING 1 RICES for the Year Ended December 31,1983 Constant Current Dollar Cost (In Thousands of Average 1983 Dollars)
Income applicable to common stockholder, as reported.
$229.011
$229.011 Erosion of common stockholder's equity because of changing prices:
Cost in excess of the original cost of productive facilities not recomrable in rates as depreciation-Reportable as an additional provision for depreciation 173,124 192,250 Reportable as an adjustment to net recoverable cost 3.964 (43,981) 177,088 148,269 Excess of the general level of prices ($369.069) in the current year over increase in specific price changes ($340.250)*
28.819 Offsetting effect of debt financing (120,272)
(120.272)
Net erosion of commen stockholder's equity 56.816 56,816 income applicable to common stockholder, as adjusted * * (including the effect of debt financing)
$172,195
$172,195
- At December 31,1983, current cost of property, plant and equipment, net of accumulated depreciation, was $9.7 billion, and historical cost or net cost recoverable through depreciation was $4.8 billion.
- Adjusted income applicable to the common stockholder would be $56 milhon on a constant dollar basis and $37 milhon on a current cost basis if only the amount reportable as an additional provision for depreciation were deducted from the reported amount of such income.
1983 1982 1981 1980 1979 Operating Revenues:
$1,764,145 (In Thousands)
Historical cost.
$1,875.608
$1,594,022
$1,421,997
$1,163,623 As adjusted
- 1,875,608 1.817,069 1,753,424 1,720.616 1,594,164 Income (loss) applicable to common stockholder:
Historical cost...
$ 229,011
$ 162,257
$ 99,809
$ 129,704
$ 57,440 As adjusted for the net erosion of common stockholder's equity
- 172,195 115,273 2,538 11,701 (82,710)
Common stockholder's investment (net assets), at year-end:
Historical cost.
$1,499,909
$1,340,890
$1,231,061
$1,211,417
$1,022,533 Excess of the generallevel of....
1,469,911 1,367,708 1,304,925 1,393.130 1,329,293 As adjusted
- prices over (less than) increase in specife price changes *
$ 28 819 (5,628) $ 42,265
$ 132.231
$ 354,681' Effect of debt financing *
$ 120,272
$ 123,349
$ 252,926
$ 369,541
$ 436,422 Return on average common equity:
.11.61 %
5.82 %
As adjusted for the net erosion of..
16.12 %
12.62 %
8.17 %
Historical......
common stockholder's equity
- 12.14 %
8.63 %
.19%
.86%
(6.06)%
Cash dividends declared:
Historical cost.
$ 145,200
$ 130,700
$ 120,800 ' $ 115.300
$ 54,000 145,200 134,621 132.880 139,513 73,980 As adjusted
- Average consumer price index 298.4 289.1 272.4 246.8 217.4
- Adjusted amounts represent average 1983 dollars.
34
1 GENERAL OFFICERS DIVISION OFFICERS Joseph M. Farley, President W. D. Bolton, Vice President, Anniston Elmer B. Harris, Executive Vice President John B. Byars, Jr., Vice President, Eufaula Jesse S. Vogtle, Executive Vice President Robert H. Haubein, Jr., Vice President, Tuscaloosa6 William O. Whitt, Executive Vice President William L. McDonough, Vice President, Mobile Kenneth L. Allums, Senior Vice President A. C. Rog;rs, Jr., Vice President, Tuscaloosa7 Travis J. Bowden, Senior Vice President H. H. Turner, Jr., Vice President, Birmingham Fred L. Clayton, Jr., Senior Vice President Clyde H. Wood, Vice President, Montgomery H. Allen Franklin, Senior Vice President 1 John D. Jones, Senior Vice President TRANSFER AGENTS Edward L. Addison,Vice President 2 Alabama Power Company 6
Bob Andrews, Vice President, Human Resources B rm ngha I a a35291 S. H. Booker, Vice President, Marketing Chemical Bank Stephen E. Bradley, Vice President, Corporate 55 WaterStreet Communication New York, New York 10041 Rayford F. Davis, Vice President, Power Delivery (For the 8.72% and Adjustable Rate [1983 Series]
R. S. Hardigree, Vice President, Corporate Class A Preferred Stock)
Planning Continental Stock Transfer & Trust Company R. E. Huffman, Vice President, Electric System 72 ReadeStreet Operations New York, New York 10007 William B. Hutchins,111, Vice President (All series except 8.72% and Adjustable Rate (1983 and Treasurer Senes] Class A Preferred Stock) l Charlton B. McArthur, Vice President, industrial REGISTRARS Development R. P. Mcdonald, Vice President, Nuclear AmSouth Bank' N.A Birmingham, Alabama 35288 Chemical Bank Jackson W. Minor, Vice President and Comptroller NewYork, New York 10041
)
G. Thornton Nelson, Vice President, Industrial (For the 8.72% and Adjustable Rate [1983 Series]
l Development 3 Class A Preferred Stock)
Ollie D. Smith, Vice President, Corporate Real Continental Stock Transfer & Trust Company Estate 72 Reade Street Robert R. Todd, Vice President, Construction New York, New York 10007 Alvin W. Vogtle, J r., Vice President 4 (All series except 8.72% and Adjustable Rate [1983 J. T. Young, Vice President, Fossil /H yd ro G eneration Series] Class A Preferred Stock)
Richard A. Bowron, Secretary All executive officers are full-time employees of the Charles M. Deason, Assistant Comptroller company with the exception of Edward L. Addison, Ernest E. Glass, Jr., Assistant Comptroller The Southern Company; and Robert C. Ford and Jerry L. Harris, Assistant Comptroller E. Ray Perry, Southern Company Services, Inc.
Dale W. Oliver, Assistant Comptroller 1 Resigned effective May 27,1983 to become Executive Vice President, Southern Company Robert C. Ford, Assistant Secretary and Services, Inc.
AssistantTreasurer 2 Effective November 1,1983 E. Ray Perry, Assistant Secretary and 3 Retired March 31,1983 AssistantTreasurer 4 Retired October 31,1983 Dorothy L. Essig, Assistant Secretary SRetired July 31,1983 John H. Snyder, Assistant Secretary ee I
83 W. L. Sanders, Jr., Assistant Treasurers William L. Smith, AssistantTreasurer 35
DIRECTORS Joseph M. Farley, Birmingham (1965)t Emil Hess, Birmingham (1975)t President Chairman of the Board Parisian,Inc.
Frank M. Moody, Tuscaloosa(1956)
Apparel Chairman of the Board The First National Bank of Tuskaloosa Fred Morgan Clark, Eufaula(1977)
Commercial Banking Senior Vice President and Director T. Massey Bedsole, Mobile (1963)*
- United Federal Savings and Loan Association Financial Service of Savings and Loan Association Partner Hand, Arendall, Bedsole, Greaves & Johnston John C.Webb, IV, Demopolis(1977)*
Attorneys President Howard Murfee, Prattville(1963)i Webb Lumber Company,Inc.
Chairman of the Board Wholesale Lumber McQueen Smith Farms,Inc.
Jesse S.Vogtle, Birmingham (1979)t D.iversified Farmers and Ginners ExecutiveVice President Ja s C. Inzer, Jr., Gadsden (1965)
William O. Whitt, Birmingham (1979)t Executive Vice President Inzer, Suttle, Swann & Stivender, P.A.
Attorneys Elmer B. Harris, Birmingham (1930)t Alvin W. Vogtle, Jr., Atlanta (1968)2 Executive Vice President Former Chairman of the Board Whit Armstrong, Enterprise (1982)*
TheSouthern Company President Electric Utility Holding Company The Citizens Bank Crawford T. Johnson, Ill, Birmingham (1969)t Enterprise Ro Rade ff' Jr.' Mobile (1982)*
ola Bottling Company United,Inc.
g Board Bottlersof SoftDrinks Radcliff Marine Services,Inc.
G. Thornton Nelson, Birmingham (1969)2 FormerVice President Edward L. Addison, Atlanta (1983)3 President Frank A. Plummer, Montgomery (1969)1 The Southern Company Chairman of the Board Electric Utility Holding Company First Alabama Bancshares,Inc.
Mult: bank Holding Company James H. Sanford, Prattville (1983)4 President S. Eason Balch, Birmingham (1970)
McQueen Smith Farms,Inc.
e rmem ansnnem a ch ingham BakerWard Smith Bowman &
Thagard Attorneys
- A I mJ Rush n 11, Birmingham (1970)t
,. Au tComm e te na member t ExecutiveCommitteemember Protective Corporation
- eA Sales and Service of Life and Health Insurance j
ect John W. Woods, Birmingham (1973)t 3 Effective November 1,1983 Effective August 1,'1983 Chairman and CEO 4
AmSouth Bancorporation MultibankHoldingCompany Years in parenthesesindicate date of election.
36 1
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A OIL OR GAS NUCLEAR w's: %j g-Alabama Power d the Southem electnC System I
Thia etetement refiscts thn usual ALABAMA POWER COMPANY accounting practices of the Company STATEMENT OF INCOME on the basis of interim figures and (Stated in Thousands of Dollars) is subject to audit and end of year adj ustments.
3 Months Ended March 31, 1984 OPERATING REVENUES............................................
$495,063 Operation Expenses -
Fuel......................................................
144,044 Purchased and Interchanged Power, Net 1,076 Other Operations..........................................
68,588 Maintenance Expenses........................................
50,275 Depreciation and Amortization...............................
43,704 Taxes Other Than Income Taxes...............................
31,796 Income Taxes Federal...................................................
3,019 State.....................................................
2,918 Deferred Federal-Net 17,761 Deferred State-Net........................................
1,384 Investment Tax Credit.....................................
25,741 Total Income Taxes......................................
50,823 TOTAL OPERATING EXPENSES......................................
390,306 OPERATING INCOME..............................................
104.757 Allowance for Funds Used During Construction - Equity.......
8,830 Dividends from Southern Electric Generating Co.
801 Other Income less Income Deductions.........................
2,666 INCOME BEFORE INTEREST CHARGES................................
117,054 61,650 Interest on Long-Tern Debt Other Interest Charges......................................
1,260 Allowance for Funds Used During Construction - Debt (5,363)
Income Tax Effect on Debt Portion of Allowance for Funds Used During Construction............................
(4,850)
N ET INC 0NE '....................................................
64,357 Dividends on Preferred Stock................................
10,457 NET INCOME AFTER DIVIDENDS ON PREFERRED STOCK.......................................................
S 53,900 l
mw/22/5 i
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i This statement reflects the usual accounting practices of the Company
{
on the basis of interim figures and is subject to audit and end of year adjustments.
ALABAMA P0kTR COMPANY BALANCE SHEET (Stated in Thousands of Dollars)
AS S ETS AT MARCH 31 1984 Utility Plants Plant in service and held for future use, at original cost
$5.399.212 Accumulated provision for depreciation 1.428,102 3.971.110 Nuclear fuel, at amortised cost 218.396 Construction work in progress 839.217 5.028.723 Less: Property-related accumulated deferred income taxes 600.273 4.428.450 Other Property and Investments 20.956 Current Assets:
Cash 8.426 Temporary cash investments, at cost 80.228 Receivables 154.191 i
Accumulated provision for uncollectible accounts (730)
Refundable federal income tax 4.937 Fossil fuel stock, at average cost 253.007 Materials and supplies, at average cost 46.570 Prepayments 54.447 60k.076_
Deferred Charges 70.127
$5.120.604 CAPITAlf ZATION AND LIABILITIES Capitalization:
Common equity
$1.538.643 Preferred stock -
Not subject to mandatory redemption 424.400 Subject to mandatory redemption 37.224 Long-term debt 2.400.049 Total Capita 11:stion
_4.400,316 Current Liabilities:
Notes payable to banks Preferred stock sinking fund requirement Long-term debt due within one year 61.326 Accounts payable 186.952 Customer deposits 26.536 Taxes accrued 53,343 Tax collections payable 4.586 Interest accrued 73.150 Dividends accrued or declared Hiscellaneous 2.490 31,126 419.509 Deferred Credits. Etc.:
AccumulateJ deferred investment tax credits 266.856 Hiscellaneous 13.928 280.784
$5.120,609 mw/22/3
ALABANA POWER CONPANY Internal Cash Flow for Joseph M. Farley Nuclear Power Station (Dollars in Thousands) f i
1983 1984 Actual Proiections Net Income After Taxes
$266,947
$255,093 Less Dividends Paid 183.136 206.304 Retained Earnings 83.811 48.789 Adjustments:
Depreciation and Amortization 224,656 257,730 Deferred Income Taxes and Investment Tax Credits 220,543 186,712 Allowance for Funds Used During l
Construction (Gross)
(73.661)
(99.667)
Total Adjustments 371.531 344.775 Internal Cash Flow S455.349
$393.564 Average Quarterly Cash Flow
$113.837 8 98.391 Percentage Ownership in all Operating Nuclear Units:
Joseph M. Farley Units 1 and 2 100%
Maximum Total Contingent Liability
$ 20,000 i
1 J
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Altbimg owerpompany p
J 600 Norut 18th Strs$t l
Post Othes Box 2641 Btrmingham, Alabama 35291 Telephore 205 250-2905 William B. Hutchins,111
~
y Vice Presioent and Treasurer Alabama Power t% sourten &ctnc systm1 April 26, 1984 Mr. Jerome Saltzman Chief, Antitrust and Indemnity Group Nuclear Reactor Regulation Nuclear Regulatory Commission Washington, D. C.
20555 Dear Mr. Saltzman Enclosed is the annual submission of Alabama Power Company with respect to the retrospective premium guarantee required under the Price-Anderson Act, as amended, applicable to its Joseph M. Farley Nuclear Plant. We have elected to satisfy this guarantee requirement by submitting annual certified financial statements and cash projections, showing that a cash flow can be generated and would be available for payment of retrospective premiums up to $20,000,000 within three months after submission of the statement. In this connection, enclosed are the following:
1.
1983 Annual Report which includes financial statements for the calendar year 1983, together with the report on such statements by Arthur Andersen & Co., independent public accountants:
2.
Unaudited Financial Statements for the quarter ended March 31, 1984:
3.
Cash Flow Projections for the period January 1,1984 through December 31, 1984, showing that cash flow for
$20,000,000 can be generated and would be available for payment of retrospective premiums within three months after submission of the statement.
Please acknowledge receipt of the enclosures by signing and returning a copy of this letter.
Yours very truly, NU * >$kN $ f William B. Hutchins, III WBRIII/sts Enclosures I\\