ML20094M878

Forwards Annual Financial Statements,Summary of Present Levels of Property Insurance & 1991 Annual Rept

ML20094M878
Person / Time
Site:	Summer
Issue date:	03/27/1992
From:	Hunt S SOUTH CAROLINA ELECTRIC & GAS CO.
To:	Wood R NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML20094M881	List: ML20094M878 ML20094M883
References
NUDOCS 9204030021
Download: ML20094M878 (20)

Text

10CFR140.21 0C

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March 27. 1992 Document Control Desk U. S. Nuclear Regulatory Commission Washington, D. C.

20555 Attention: Mr. Robert S. Wood Gentlemen:

Subject:

VIRGIL C. SUMMER NUCLEAR STATION DOCKET NO. 50/395 OPERATING LICENSE NO. NPF-12 ANNUAL 10CFR50.54(W)(3) AND 10CfR140.21(E) REPORT in compliance with 10CFR50.54(w)(3) and 10CFR140.21(c) respectively, South Carolina Electric & Gas Company (SCE&G), acting for itself and as agent for South Carolina Public Service Authority (PSA), herewith submits a summary of the present levels of property insurance and a cash flow statement for the Virgil C.

Summer Nuclear Station, in addition, the 1991 Annual financial Statements for SCE&G and PSA are enclosed.

Very truly yours,

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DWF:JLS:lcd Enclosures c:

0. W. Dixon Jr. (w/o Enclosures)

NRC Resident inspector R. R. Mahan (w/o Enclosures)

J. B. Knotts Jr.

l R. J. White J. B. Buford (M/C 056)

5. D. Ebneter NSRC i

G. F. Wunder File (818.02-4)

RTS ANN 2500) (w/o Enclosures) l General Managers (w/o Enclosures)

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NUCLEAR EXCELLENCE - A SU MER TRADITION!

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SOUTH CAROUNA ELECTRIC AND GAS COMPANY 17-Mar-92 INTERNAL CASH FLOW PROJECTION FOR V.C. SUMMER NUCLEAR POWER STATION (THOUSANDS OF DOLLARS)

PRIORYEAR PROJECTION YEAR 1991 1992 ACTUALTOTAL TOTAL t

NET INCOME AFTER TAXES 122836 113167 LESS DMDENDS PA!D 103706_

103770_

RETAINED EARNINGS S

19130 9397 i

ADJUSTMENTS DEPRECIATION AND AMORTIZATION 110002 S

125926 DEFERRRED INCOME TAXES AND

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i INVESTMENT TAX CREDITS 25904

-1939 ALLOWANCE FOR FUNDS i

USED DURING CONSTRUCTION

- 6255_

- 91_64_

TOTAL ADJUSTMENTS S

129651 S

114823 j

INTERNAL CASH FLOW

$ _ _ 148781

$ _ _ J 24220_

AVERAGE QUARTERLY CASH FLOW

_37195, S

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Financial Statement South Carolina Public Service Authority Calendar Year 1991 l

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REPORT OF INDEPENDENT AUDITORS N~ Advisory Board and Board of Directors South Corolino Public Service Authority E

Wehave ouded the accompanying bolonce sheets of the South Carolino Public Service Authority os of December 31,1991 and 1990, and the relomd staternents of occumulated eomings reinvested in the business, reinvestd earnings, and cash flows for eoch of the three years in the period ended December 31 199 ). hse hnonciol stotements cre the responsibihty of the Authority's monogement.

Our responsibility is to express on opinion on these hnoncial statements based on our audits.

. i We conducted our audits in occordonce with generolly accepwd auditing stonderds, hse

-standards require that we plan and pedorm the 'oudit to obtain reosonoble assurance about whethw the financial stotements are free of material missto?ement. An oudit includes examining, on o test basis, evidence supporting the amounts and disclosures in the financial statemenn An audit also includes ossessing the accour.fing principles used and signihcont eshmates made by monogement, os weil as evoluoting I'io overoll financial sh:rtement presentation, We believe that our audits provide o reasonoble basis for our opinion-

' N hnoncial snowments of the South Carchno Public Service Authority up in' ided to present the finoxiol position, resuln of operations and cash Ibws of proprietary fund types of only that porton.

%e funds and account groups of the Stow of South Carolino that is attributobio to the transoetions n. Seh Carolino Public brvice Authority.

T o w e inion, the financial stammenn referred to above present fairly, in oli matenol respecn, :he position of the South Corohno Public Service Authority of December 31,1991 and 1990,

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,4 n,d 6e uults of its operations and its conh flows for each of the three years in the period ended

% rwr 31,1991 in conformity with generally occepted oc:ounting principles, e

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BALANCE SNSETS South Carolino Public Service Authorits December 31,1991 and 1990 -

ASSETS 1991 1990 (thovionds)

Utility Plant At Costt Eactric plant in r,erwce

$ 2,372,535

$ 2,276,237 Construction in Progress 150,649

'120,100 2,523,184 2,396,337 ~

Tosol tess occumubted depreciation 689,810 630,155 Electric pbni* net 1,833,374 1,766.182 Nuclear fuel ~ net 19,097 19,877 Util# plant net 1,852,471 1,786,059 Other Physical Pmpoety (Not of Accumulated Depreciahon) 927 897 Cash and investments Held by Trustee (Designated) -

525,863 282,522 Cunortt Assets:

Cash and investments held by Wustee :

50,023 53,960 Accounts receNoble, less allowance for doubtful accounts of $1,336,000 in 1991 and $1,224,000 in 1990 45,5 %

52,446 Accrued inti,re5t receivable 4,090

' 3,994 inventories, of overog, gost-Fuel (cool and oil) 32,228 36,515 Materials and supptes 33,441-28,510 Prepaid expenses.

1,056 1,075 Totalcurrent assets 166,434 176,500 Iseferred Debite:

Unomortized debt expense 16,924-13,992.

Unomortized loss on rerunded debt 217,712 223.271 Costs to be recovered from future revenue 317,328 292,865 Other 23,322-28,491 Total deferred debts 575,286-558,619 i

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$ 3,120,981

$ 2,804,597 l

The occompanying notes are on integrol port of the financial statements.

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w UAlluTIES AND CAPITAUZATION 1991 1990 (Tbsonds)

Long Term Debt:

Electric Revenue Bondarionry Obhgot;ons 49,705 52,095 Electric System Expansion Revenue Bonds 1,695,100 1,762,295 Subtoel 1,744,805 1,814,390 Electric System Revenue Bonds 40,500 67,500 Copitalized leoso obligatons 58,871 61.832 Revenve Bonds 368,910 Tek31loncyerm debt 2,213,086 1,043,722 Less:

Reacquired debt 5,655 4,556 Unomortized debt discoent and premium net 40,256 21,317 Long4erm debt ret 2,167,175 1,917,849' Accrued Interest on Long Term Debt 72,296 64.056 Construction Fund Mobilities Accounts Payable 3,861 3,2,73 Other Non-Cunwnt Uobilities 23,396 18,83)

Current uobilities:

Commercial paper now 124,000 120,000 VJnibwh 83,514 55,831 Accounts payable 29,991

'36,327 Cusemer deposits 5,276 5,111 Accrued sums in lieu of taxes 1,835 1,837 Accrued nuclear fuel reload 983 5,274 Cusemer's credits 2,640 2,432 Other 4,273 3,252 -

Total current liabilities 252,512 230.064 Commitments and Contingencies Defened Credits:

Unomortized gain on reacquired debt 873 822

• Nuclear fuel settlement

.233 4,395 Total deferred credits.

1,106 5.27 Capital Contributions U.S. Govemment Grants 34,438 34,438 Accumulated Earnings Reinvested in the Business 566,197 530,869 htel

$ 3,120,981

$ 2,804.597

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t STATEMENTS OF ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS-South Carolino Public Service Autho'rity Years Ended December 31,1991,1990, and 1989 1991 1990 1989

[Thovsonds)

Accumulated earfogs reinvested in the business beginning of'yeor.

$ 530,869

$ 496.497'

$ 458,371 Reinvested eornings for the year 40,968 40 001 43,492 Total 571,837 536.498 501,863 Distribution to the Sete of South Corolino (See nom below) 5,640 5,629 5,366 Accumulosed earnings reinvested in the business end of year -

$ 566,197

$ 530,869

$ 496.497 Note: The distribution e the Sete of South Corolino is determined utileing a calculation formulo required under the indenture which is based essentially on operating cash Bows and mondatory reserve requirements. Such calculation varies substantially from reinvested earnings for the year principolly due to costs to be recovered from Iv:ure revenue end working capitoi requirements.

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STATEMENTS OF REINVESTED EARNINGS South Corolino Pubhc Service Authoriy Years Ended December 31,1991,1990, and 1989 1991 1990 1989 (Nusands)

Operating Revenues Sales of elect-icity

$ 557,736

$ 548 066

$ 549,578 Other operahng revenues 4,842 5,914 5.216 Total operahng revenue:

562,578 553,980 554.794 Operating Expenses:

Operation expense:

Production 232,219 241,682 248,231 Purchased and inwrchanged power - net 9,220 5,170 8,007 Transmission 3,028 2,708 2.375 Distribubon 3,698 3,048 2',696 Cusemer accounts 3,639 4,650 3.531 Sales 1,266 1,263 735 Administrohve and general 41,037 40,711 38,873 Maintenonce expense 50,213 42,511 37,561 Totaloperoton and moinenance expense 344,320 341,743 342,009 Depreciation 70,846 67,538 69,570 Sums in Isu of taxes 3,364 3,426 3,449 Total operating expenses 418,530 412,707 415,028 Operating income 144,044 141,273 139,766 Other inconw: '

Inerest income

^

29,302 22,858 24.461 Other - net 52 14 (41)

Total ether income 29,354 22,872 24,420 Subtotal 173',402 164,145 164,186 Interest Charges:

Interest on long-term debt 133,619 131,197 133,606 Other 23,279 19,474 15,881 Totalinterest chorges 156,898 150,671 149,487 Subtok:1 16,504 13.474 14,699 Others -

Costs e be recovered from future revenue 24,464 26,527 2Es,793 R6investedEamings

$. 40,968 5 40,001

$ 43,492 The accompanying notes are on integral poit of the hnencial statements.

s urescoors Q iu~vai ei.cer

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L STATEMENTS OF CASH FLOWS Sevah Coro ino Public Service Author #

r Years Ended Decembi,31,1991,1990, and 1989.

INCREASE (DECREA5E) IN CASH AND CASH EQUIVALENT 5 1991 1990 1989 (Thovsonds)

Cosh Flows From Operating Activities:

Net Operatig tncome

, $ 144,048

$ 141,273 $ 139,764 Adjustmens to reconcile reinvested earnings b nel cosh provided by operating ochvities:

Depreciation and omenization 70,846 67,538 69,570 Arno<tzahu of bond < elated expenses 12,439 9.957 10,145 Net interest income (6,493)

(8,360)

(7,263)

Nxlear fuel settlement (4,162).

(3,654) 201 Choryes in asses and hobilites:

Accounts receivoble 6,850 9,441 (13,299)

Inventones (644).

(268)

(20,609)

Prepoid epw.ses 19 (132)

(92)

C6er deferred debits (7,202) 613 (3,898)

Accounts payable (4,508) 511 3,969 Othw current liabilities 3,354 (8,036) 14,616

- Ofte nowurrent 1;obel. ties 4,563 3,539 4,796 Net cosh provided by operuting octvihes 219,110 212,422 197,903 Cosh I' lows From inresting Activities:

N'et (increase) decrease in investments (137,668)

(29,897)

(49,878)

Interest on investments 22,544 19,471 20,875 Net cash hisod in) provided by' invest ng cr:nvities (115,124)

(10,426)

(29,003)

Cosh Flows From Noncepital Related rinoncing Activities:

Distribution to the State of fovth Corolino -

(5,640)

(5,629)

(5,366)

Net cash used for noncepiel related financing activities (5,640)

(5,629)

(5,366)

C ash Flow From Capital Related Financing Activities:

. t'roceeds from sole of bonds 398,093 21,416 17,403 Pro'cetds from soie of commercial paper 4,000 70,000L Recoyment and refunding of bonds (99,934)

(35,571)

(34,570)

Construction and betterments of utihty plant (136,466)

(92,473)

(85,153)

Interest paid on borrowings (141,703)

(139,399)

(134.279)

Proceeds from sole of plant assets (822) 438 509 Urnrnortized bond < elated expenses (28,700) 399 420 feecrease (Increase) in other deferred debits 12,372 (8,777) -

(7,969)

(Decrease) increase in construenon fund liabilities (1,240) 2,236 451 Other (2,211)

(2,877)

(2,811)

Net cash used for cooitol< elated financtng activities 3,389

. (184,608)

(245,999) in coo,o g ~,,v.[ u,en s

+

1991 1990

'1989 Net (Decrease) Increase in Cash and Cash Equivalents 101,735 11,759 (82,465)

Cash and Cash Equivalents of the Beginning of the Year 127,348 115,589 198,054

_ Cosh and Cash Equivalents of the End of the Year

$ 229,083

$ 127,348 $ 115,589 Reconciliation of Cash and Cash Equivalentst Cosh and investments held by trustee (designated)

. $ 525,863

$ 282,522. $ 253,955 Cash and investmens held by trustee 50,023 53,960 40,869 Less investments, not cons 5lered cash end cash equivoients 346,803 209,134-179,735 Cash and cash equivalents at the end of the year

$ 229,083 '

$ 127,348 $ 115,589 e

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NOTES TO FINANCIAL. STATEMENTS December 31,1991 Note 1 Summary of Significant Accounting Policies: Note 2 - Costs to be Recovemd from Futuru Revenue:

A. Reporting Entity - The South Cord.no Public Service The Authonty's electne rates are estabhshed based upon debt Auffo ity (the "Authonty"), o component unit of the State of South service and opwohng fund requirements Deprocetion is not Cardino, was created by the 193A $tu+e bgislature. N brd considered in the cost of service calculaton. This te shs in timing of Directors is oppoirued by the Gonmor of Ath Cordino N d,fierences between cosu os dehned in he rate.moking process purpose of the Authority is to provido electric power lo the people and cosh determined in occordance with gererolly accepted of beh Corchno. Cop;rol projects are funded by bc>nds asued occounting principles. The e differences ore recognized as costs by the Authonty and internally generated funds. N Board of to be recovered from fv vre revenue N recovery of outstonding e

Directors sets rotes chorged to customers to pay debt servie, omounts ossociated with costs to-be recovered from future op<sronng espenses and provide funds reqused under bond revenue will coincide with the ret rement of the outstonding long-counonts.

term debt d the Authonty.

B. Systers, of Accourtts - The occounhng records of the f or the years ended December 31, I 991,1990 and 1989, coin Authonry ore momicined sabstantmihr in occordonce with the to be recovered from future revenue mcbded in the statement of Un4r 'iystem of Accouns prescRbed by the Federal Energy reinvested eomings consism principolfyof the dif'erence between Reg: n Commnsion (FERC) deprocet on and debt service requiremenn.

C. Utility Plant Capitolitation and Molntenance -

Addinons to plant are mcorded of con which includes material, Note 3 Cash and investments Held by Trustee

@**3 "*'*N inbor, overhead, and interest capitained dunng constructon.

9 The costs of repairs and mmor repiocemenn are charged to Unexpended funds from the sole d exoonsen bonds, debt oppropnote ope onng and ma nienance expense. N costs of sennce funds, other specol funds and cosh and investmenn ore renewds and bettermeres are capitalized N orienal cost M held and maintained by trusiees and their use designoned in uthy plant retired and ihe cost of removol less solvoge are accordonce with opphcoble orovisions of various trust indentures.

. charged to occumulc8d depreciation.

bond resolvnons, lease ogreemens, and the Enabhng Act included D. Depreciation - Deproccten is computed on a streight line !n the South Corohno low. Such funds consist pnneipolly of bosis over the esumated useful lins of the vonous classes of N

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plant. Annual depreciation provisens, expressed as c, percent of Cash Cosh is categonzed as follows: Category 1 includes bank overage deproceble utihty pione in serece. were opproximately boionces ennrely covered by federal depository insurance.

3.3% for each of the three years in the period ended December Category 2 indudes bank balonces that are uncolloterol. zed or 31,1991. Amortizanon expense of cop tolaedleases isincLded coleterobred with secunnes held by pledg ng hnonciolinshtutions in deprecionen exper.se.

but not in *be Authonty's name.

E. Revenue Recognition - Subsenhally oil wholeusle and investments. Trust indentures and resobhons outhorize me indsstriol revenues are billed and recorded of the eno of eoch Authonty to invnt in obhgohons of the U.S. Treasury, ogenein, month. Revenues from rero:1 customers are recognized os bi3ed instrumenschties, end cernhcotes of deposit. The Authority's on o monthly cyde basis. Fuel cosa are reflected in cparanng investments consist of U.S Governrnent secanties, cernficotes of expenses os consumed.

depes4 and repurchase ogreements. N Authoney requires that F. Amoettxatie:,n - Unemortzed debt diser unt, premium and seenn undeMng repurchase ogwmens how a modet vdue o t le st 102 percent d de cost d de repechase expense ore-amortzed io income over the terrns of the related debt issues. Unomortzed gains or lusas on refunded debt we 9""*nt U@H W eMn9 rePwchose ogmmenn me amorteed to income os impoeted ihrough the rownching process, dehwed h broker deokrs b de Aeonys tmst ogenm. At generolfy over the terms of the new debt issues.

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, me AiA nys repurchase ogmmenn totalled $165,025,000.

G. Cash Equivoients - For purposes of the siotemeno of cash N"**""*"" ** C#'9 "Z*N"

• '"9 E 9'I Bows, the Aurhonty considers highly liquid invest nents with on orgind motuniy of less than three monrbs os cash eqvwokents. In togw n andx.ci on of the level of risk onumed by the ennty at 1991, the Authonty changed the dehnition d cosh equivovnts to. ye rend. Ccttgory 1 incbdes investmens that are insured or include ce<1om Cosh and investments Held by Trustee (Desonated).

registered or i r which the secunties ore held by trust ogents in the Consequently, the poor years' hnencel statemen's are presenied Auth rity s n me. Category 2 includes uninsured ce tihcotes of on a basis consistent witn that cf 1991, deposit which are cdiaterohzed with secunties held by the pledging hnoncial inwution but not in the Authonty's nome.

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1 1991 Investrnents Cash Total Category Cogory Category Cogory Corrying Market l'

2 1

2 Value Volve (Thovsonds)

Cosh and invesensats -

Held by Trustee (Designored):

Generolimprovement Funcis.

- $ 117,911 -

$ 200 38

$ 843 $ 118,992

(, ' 9,3 32 Debt Service end Sr sen! Funds indentured Bonds inwest fund..

999 990 990 Bond Fund.

1,231 1,231 1,231 Reserve..

8,898 8,898 9,078 Expondon Bonds inwest Fund..

57,218 57,218 57,218 Bond Fund.

11,784 305 12,089 12,166 Reserve..

121.921 81 122,002 129,687-Subordinated Bonds inwest fund.

1,661 1,o61 1,661 Bond Fund.

6,564

JO

' 73 6,737 6,781 Reserve...

3.219 1,200 36 4,455 -

4,463 Revene Sonds Interest Fund...

7,314 1

7,315 7,316 Bond Fund.

758 23 781 789 Reserve..

13,980 1I 13,991 15,099 MnMs

~inwest 1988 & 1989.,

3 1,098 1,103 1,103

' Cebt Service 1989 6192915sve..

1,112 1

1,]13 1,154 Funded inurest 19911ssue.m 44,120 1

44,121 45,647 Other Special Funds.

139,836 (16,670) 123,166 121,942

' Toeal.

361,732 1,200 217 43.722

~406.871 416,375 intel Cash and invesenents Held by Trustee (Designated)

$ 479,643

$ 1,~400

$ 255

$ 44.565 5 525,863 $ 535,657

- Cash and invesnnents Held by *ustee:

T Revenue Fund :

$ 28.594

$ 14.025 5 42,619

$ 42,777 Specio! Reserve Fund.

7,309 100 (5) 7,404 7,588 Toto! Cosh and invesnrents Held by Trusw.

$ 35,903

$ 100

$ 14.020

$ $0,023

$ 50,365 CCCrtt h ANNWAt

$ANrit at#0ff a

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1990 Investroents Cosh Tod Category Cotr Category Category Corrying. Market 1

2 1.

2 Volue Volee

{Thovsonds)

Cash and investments Held by Trustee (Designosed).

General imp ovement Funds.

,., $ 25.175

$ 100 14

$ 399

$ 2. 688 $ 25,697 Debt Servite end Specol Funds indentured Bonds interest Fund.....

1,026 1,026 1,026 -

Bond Fund..

1.196 1,196 1,196.

Reserve.

8.899 8,899 9,033 Expansion Bonds inwiest Fund.

60,068 60,068 60,068 Bond fund.

10.881 2

10.883 10,883 Rewrve.

127,899 18 127,917 130,958 Subordinated Bonds interest fund.

2,768 2,768 2,768 Bond Fund.,

6.750.

6.750 6,750 Reserve -

3.639 1,400 5.039 5.049 Revenue Bonds

-interest Fund.

307 307 307 Reserw.

769

• 769,

769

- Min &nds in= rest 1988 & 1989.

1.110 1,110 1.,19 Debe Servce -

1989 & 1989 issue..

1,113 1,113 1,113 Other Specci Funds..

37,136 (8,147) 28,989 ~ 26,248 Tod.

200.418 1,400 55,016 256.834 257,278 Toel Cosh ond.%.stments Held by Trusme (Designated).

$ 225,593

$ 1,500 14 5 55,415 1 282.522 $282.977 Cosh and Investments Held by Trustee:

Revenw fund'....

$ 37,473

$ 2,141

$ 39,614 $ 39,666 Specio! Reserve Fund.

14,232 100 14 14,346 14,443 Tool Cosh and Investments

'~

Held by Trvsme.

$ 51,705

$, 100

$ 2,155

$ 53,960 $ 54~,109 l

l l

l

(.

i tam.tst cocote g auquat attoer c

-m

Note 4 Long-Term Debt Outstanding:

December 31, 1991 1990 (Thousands)

Electnc Revenue Bonds Priori'y Obligations:

Series of 1950, bearing interest at 2.70% and due 1992 to 1993.

4,065

$ 6.015 Series of 1967, bearing interest at 4.10% and due 1992 to 2006.

45,640 46.080 Toiol Electric Revenue Bonds Prionty Obhgohons.

49,705 52,095 Electric System E~.pansion Revenus Bonds:

1973 Series, bearing interest kom 5.40% to 5.75% and due 1992 e 1993 ond 2013 86,600 88,055 1974 Series, bearing interest from 6.30% e 6.75% ond due 1992 to 1999 and 2014.

95,770 97.360 1977 Refundinr, Series, boonng interest from 5.40% to 6.00% and due 1992 to 1997 and 2002 or.d 2016.

175,955 179,785 1977 Series, beonng interest kom 5.00% io 5.75% ond due 1992 to 2002 and 2017 110,115 110,705 1978 Senes, beenng interest from 5.15% to 5.875% and due 1992 to 1998 and 2008 ond 2018.

190,270 191,490 1979 Senes A, beenng interest from 5.90% to 6.875% and due 1992 to 2003 and 2009 and 2019.

100,500 101,740 1980 Senes A, bearing intemt at 9.30*', and due 1992.

I,350 7,440 1981 Senes A, beonng interest at 8 60% and due 1992.

.. r..

1,165 10,290 1981 Senes C, moivred 1991.

1,185 1982 Senes A, motured 1991 2,105 1982 Series B, bearing interest at i1.25% and due 1992..

1,195 2,255 1982 Reimding Series, bearing in= rest kom 8.40% to B.75% and dus 1992 to 1994.

2,075 2.660 1985 Refunding Series, bearing interest from 7.75*. e 9.10% and due 1992 to 2000..

7,820 8,385 1985 Refunding Series A, beonng interest from 7.50% to 8.75% one due 1992 to 1999...

18,650 51,560 1986 Refunding Series A&B, beenng interest hem 7.00% e 810*. and due 1992 to 2008 and 2019 and 2020..

194,065 195,955 1986 Refunding Series C&D, beonng interest korn 5.60% to 7.30% c,nd due 1992 to 2007 ond 2012 and 2021 and 2022.

332,370 333,245 1987 Refunding Series A, beenng interest fre n 5.00% to 7.00% and due 1992 to 2007 ond 2012 ond 2021 ond 2022.

188,625 189,505 1988 Refunding Senes A, beenng interest fror,7.00% to 7.875% and due 1992 to 2005 and 2015 ond 2021.

188,575 188,575 Total Electne System Exponsson Revenue Bonds.

1,695,100 1,762,295

• Electric Sysem Rewnue Bonds 1985 Seres. beenng interest kom 8.00% to 8 40% and due 1992 to 1994 l

' 40,500 67,500 Copaolized Subordinated Leose Contracts,'poyabie.1992 to 2015.

58,871 61,832 Revenue Bonds,1991 Refunding and improvement Series A, B, & C, beonng interest from

.5.00% to 7.10% ond.due 1992 to 1997 to 2002,2006,ond 2014,2024 and 2031.

368,910 Tohsl Long-Term Debt..

.. $ 2,213,086

$ 1,943,722

• See senedvie for refunded debt.

$ # PtfsI CoOPE4 A 8W D6 W A i I(Po9I

~

4 N Authonty refunos and dehposes oebt pnmordy os a rneons of refunded overaged 8.98% (xpenses for iswonce costs and reducing debt service, thereby porpon.ng or reducing Lture reserve requirsments reduced the pixceds to $57,677,000.

electric rote odparments. In 1991, the Authony issued N net proceeds, $$7,677.000 plus an odd,tional $ 6,611,000

$370,410,000 in 1991 Senes A, B ond C Rennue Bonds. The of the Authonty bnds were used to purchase U. $. Gowmment 1991 Refunding Senes A Bonds fotoned $33,915,000 ond secvnties. of which, $ 50,400.000 were placed in on inevocable rebnded $32,500,000 of the 1985A Refunding Bonds. N trvst to provide for di future debt se vice payments on the original 1991 Refund.ng and improvement Se ies B Bonds foto!Ied bonds, wnkh are now considered defeosed ord the finbuity has

$323,140,000, Of this amount, $13,405,000 was used to been removed from tne Authonty's accounts, % remainmg rebnd $13,500,000 of the 1985 Subordinated Bonds. The pornonof thou 5 Governmentsecunhes.$13,868h30wasset 1991 Refunding Senes C Bonds toel3ed $13.355.000 or.d aside to meet previous)y exating bond matunties on ju v 1, i

refunded $4,855,000 of the 1980 Senes A Bonds end 1991.

$8.075,000 of the 1981 Senes A Bonds.

Although the refundings rewired in a deferred occountmg loss of N por omount of the refunding bonds less on engind issues opproximaie9 $4,856,000, he Authority was obie to reduce n d:scou 9 of $400,000 totoned 560,275,000 and beor on tesol debt service b opproximately $4,283,000 and obioin on f

overoge interest rate of 7 2E% while tne ong4nol bonds economic gain of opproximatey $7,799,000, Amounts outstonding, ongind loss on rebndanr,, and b unomortaed less of Decuber 31,1991 fcuaw:

Refunding issue Refunded Bonds Refunded Amount Original U n amor*-ed Outstanding Loss la.s (Thousands) 1977 Refunding 1971 ond 1976 Series

$ 11,244

$5,829 1982 Refund:ng.

$ 100,000 of the 1981 Series C ond

$ 127,000 of the 1982 benes A 62,588 1,641 1985 Refund:ng

$ 150,000 of 61982 Series B 150,000 30.570 7,309 l'985 A Refunding S 139,000 of the 198i Senes B ond i 40,000 of.he 1981 Se ei C 27,833 698 Cosh Defeosonce

$ 20,000 of b 1982 Seres A 2 763 2,247 1986 A&B Refunding

$ 42,725 of the 1980 Senes A

$ 42,000 of the 1981 Series A

$ 61,000 of the 1981 Seres B

$ 4,420 of me 1081 Series C

$ 7,820 of the 1982 Senes A 3 9,010 of tne 1982 Senes B 9,010 43,736 39,364 1985 C&D Rebnding $ 280,275 of tne 1982 Reknding Senes 280.275 97,109 86,755 1987 /, Refunding

$ 160,510 el the 1985 Refundng Enes 160.510 48,038 41,314 1908 A defunding

$ 18,220 of the 1980 Senes A

$ 18,315 of he 1981 Senes A

$ 9,110 of the 1982 Refunding Seres 5,000 of the 1985 Reind ng senes

$ 120,890 of ine 1985 Refunding Senes A 135,000 23,644 27,934 1991 A.B&C Rebnding & Imorovement Senes

$ 4.855 of the 1980 Senes A

$ 8,075 of the 1981 Senes A

$ 13,500 of b 1985 Series

$ 32,500 of the 1985 Refunding Senes 46,000 4.856 4,621 Totai

$ 780,795

$ 357.401

$ 217,712 u o.. o. - o.i.

.o.,

i m it

N

+

9

% Avinony's bond indentures provide for cercin restnchons;

2. N Authonty is restricted from issuing oddit;onal ponty the me:,t seificont of whch ore:

bonds unless certain cond:tions are met

1. N Authonty covenonts e esebbsh rates r 'hcSnt to pay As ol Dncomber 31,1991, the Authority is in complionce weih all i

et deteervice, reovered lease ooyments. coproi improvement debt covenants.

fund requirenwints and oH cos+s of operanon und maintenance of the Aubnty's ek:tric speem and o;l necessory repairs, Bonds maturing durrg the years ending December 31,1992 through 1996, o'c os follows-replocements, and retwwols thereof, Priotisy Electric Obligations A Revenue Revenue Expansion Sands Bonds Bonds Total (Thovsonds)

Decembw 31,1992 -...

$ 26.665

$ 13,500

$ 1,565

$ 41,750 Decernber 31,1993.

25.635 13,500 J,415 43,550 December 31,1994-27,155 13,500 4.680 45,335 De: ember 31,1995.

28,835 18,480 47,315 December 31, l o06,

32.570 32,570 Toml.

$ 140,880

$ 40,500

$ 29,140

$ 210,520 -

Note 5 - Suminer Nuclear Station: '

indcows approximately $76.266.000 (the Authonty's one-W e decomen s

n w

N Authority and South Carolino Electne and Gos (SCE&Gl ore porties to o joint ownenhip ogreement providing that the Sumrner Nucleur StoPoo cornmencing in the year 2023.

Avthonty and SCEAG shoR own the Sumener Nuclear Station 5CE&G hos deterwned that the Summer Nuclear Suten peom with undivided inwes d 331/3%ond 662/3% respatively, gerteroton must be repieced due to stress r erosion cracking.

SCE&G is sole'y responsible for the design, construchon, SCE&G eshmomeplocement of the steam genereers will cost.

budgeting, tr.onogement, operation, mointenance, and opproximately $156 miilion d which, the Autherrty's shore will decommissirwng of rne Summe Nuclear Smen, and the be oporoximately $ 52 million w.lusive oih Avihoroy's indirect Authority is oblygoted to pay its ownership shore of oil costs costs. Replacement of the pnwomrs is,cheduled for 1996.

telating therec. b Au'horiy recens 331/3*4 of tne net SCE&G hcs fded suit ogainst th; manufm.turer of b generotors electicity geaensted. At December 31,1991 and 1990, ahe seeking demoges for the repkxeme of the generotres. N l

plant ocr.ounts inckided oppmximately $438,771,000 and ultimate outcome dee claim ceinnot be dverrmned or As time,

$428 779,000, respecthely, representing the Auknty's accordmgly no beneht has been trwdW m the finoneid investment, including capoolized interest, in the Summer Nuclear-stosements.

l l

Setion. For each of the three yeors todec Decen,ar 31,199 l' The suppiter under me originoi uranium supply ec.ntract breached 1990 and 1989 the AuSooty's operchon and maintenance the controer in 1975 due sc, uronmm n.orket condinons. SCE&G expenses included $30,880,000,133,167,000 and inihoted ochon seekirg specific perbrmance of the contract

$37,663,000, ruoectively, for opronen and reoinienance provivons, and a f.nd se'rlement wasecoch ed and opprowd by expenses of the Summer Nuclear Stohon.

oil pornes in April 1980. By terms of the see.lement, the Auknty Nuclect fuel est are being amordzed bowd on enegy_

hos recerv6d opproximotely $10,243,000 in cash es perhol

(

expended whico includes o comoonent for estimoved disposal sen(ement of the lawsuit. Additionolly, the agreement pr3vides j

costs of spent nw.' ear fuel. bse omcr52chons are included in for delivery d uranium, longaerrn dehvcies of equipment and j

fuel expenso and ore recoured through tne Authority % rotes, services (includ ng conversion and fuel fabricot!on) of a discount.

l Beginning ' 1990, the Awhority od usted its provision for h cash and ' discounts received (and related interest earned) 3 L

decommissioung.ocs to ccoply with NRC reguichen and hos which apprewimated $ 16,572,000, were recorded as deferred I

provided a Certikote of Finonaol Assurance for its 1/3 shore credits. During 1991, deferred cred ts and related interest of of the station's esmofed decommissioning expenses. N opproximoiety $4.299,000 were used e offset the oddnional l

Authority occrues br its shore of the uhmoied decomrnissioning fuel costs caocio*ed with replocement energy during the Summe costs over the remain;ng life of the facility. hie costs are being Nuclear Station refuding outage. N remaining deferred crede's recovered through t% Authonty's rates. N funding amounts of $ 233.D00 will be used dunng scheduled refueleng outages in will bt odiusted cnmmily, d necessary. A new site specJic future years.

decommissioning vudy was compleied m 1991. N study sauver coceen g a wm eseoir

- - - ~.

~.

Note 6 Commercial Poper and Mini 4onds:

Note 1 Contracts with Centrol flutik Power

'8 The Boord of Diractors authonzed the issvonce of commercial

• • P*

poper not to exceed $150,000,000. The paper is issued for The Avinority hos loose controcts with Centrol E!ectric Power vahd corporate pu poses with a term not so exceed 270 days.

Cooperanve, Inc. (CentroQ, cayenng a steom electnc generating As of December 31,1991 ond 1990, the e4ective interest rote p,ont, transminion lociitties, and vonova other facAtes The onouts'andmg borrowmgswo 4 20% and6 02% respectrvsy.

lease terms ronge from four to twenty 4out years. Quorierly leow Dunng 1991 and 1990, lhe overage amount outstonding en pohnens ure bowJ m a um equo! to the mye:t on ond

$123.890,000 and $96.410,000, respectrvely: the overage ponopol of CentroPs indebedness to the Rural Electuhcohon motunty was 44 ond 37 days, respecevelyphe overage effectwe Adminiserofion for lands bo+ rowed to construct b ooove.

interest ros was 4 60% and 6 06% respectively.

rrentoned focihties. The Authonty hos options to purchase the At Decreber 31,1991 the Aufnor.ty had o Revolving Cmdit l'0 " d P' P**8 0' "Y ** d#'i"9 Pi*d " 'h'# i' **

Agreement of $150,000,000. This agreement is ned e ogwemen i r sums equ l e Cent.ol's indebtedness remaining support the Authonty's issvonce of commercial pope There

• • ""d'"9 * 'h' operty iny ved ut the time ths optons a e

• x*rcised o# to rWn properhes of the terminoton of the were no borrowings during 1991.

lease. The 8 uthonty pions to exercise coch and every opton to in 1988 ond 1989 the Authority issued bonds dich ore due on ocquire ownership of such focihties pnor to exp.ror.on of the demand by the regisstred owner te small denominot ons unoer le s s, o MnLBond Resoluton. In 1990 b Revenue Bend Resolunon sm e um se poynienu n Cent oNeom, of Decemb u was odopaed and oU sener debt including h emnng 1980

'ond 1959 MniBonds were froven except for Fefunding purposes.

Under the Revenue tsond Resolston, small denominot+on bonds "9 O*'""

due on deocad (Senes M Bonds) were issued. The MinL6onds 2"'

and the bries M Bonds are coVective y tened to os *MinL

. (%,nns Bonds' bxouse they retom the some choroctevistics even though they are d5erent hen levels The pledgw of revenues secunng

1992,

$ 5.259 Revenue Bonds. ore junior and subordnoie en the pledge of 1993 ~

5'39 revenues securing h Priority Obligmion, Electnc Systern Expansion Revenuo Bona 1985 Subordmoted Bonds, and the IN.

5240 1988 ond 1989 MinLt mds and Copiel tense Obhgorion, but 1995.

5.233

~

ore superior to the lien and pledge of revenues secunng the 1996 '

"~

3 226 Comrrercial Pcper Notes, paymee9s to the Contmgevy Fund.

Copisolimprovement Fund, Special Rewrve Fund ond pepnens The'eoher.

56 832 to 6 trote.

Total reinmum lease povmerti.

6; 051 Commercio! Paper and MinMonds oustonding for the years 33,. am%n,,,,,,,,,nsng n,,,e 74j g3 end ng Decembe,31, are:

1991 t e;90 Saionce of Decemaer 31,1991,

$ 59 671

%sads; t,,,, p,,p,,ty under cooitolaed leoses and related occumulosed Commercol Paper

, $ 124,000 $ 120,000 omoruzoton included in utihty piant at December 31,1991'

%nLBonds toeolled $101,400,000 and $51,900,000, respectwdy, and of December 31, 1990 torolled $102,000,000 ond 1989 Sere, oeonng imvest or

$49,500,000, resoe%

7.75% and due 2003 16,711 16S41 1989 Series, beunng inserest at

• "#h

""*"***""""*"*P D "".

7.00% ond due 2004

'18,018 17.816 ccorgnce we h Power Sym Mnoen W in Integrohon agreement dated Januory 19,1981, and amend 3d Toial whL6ones 34,729 34.657 as of March 31,1988. The onnenderent provides for o change in tha Authonty's rose.moking metnodokigy for Centrol. In R**n'* Bo'd8' odd tion the Authority will be the sole supplier of Centrol's 1990 Swies M, beonng mierest energy needs exclud.ng what Centrol receives from. enn et 7.30% and due 2005 and 2006 21,495 21,174 Southeastern Power Admmistration and SCE&G. The agreement 1991 Senes M, bearing interest o:

ollows Centrol to oud.t olichorges by the Authenty. Audits for the 6.875% and due 2007 and 2003 27,290 penod.luly 1986 through December 1989 were presened to Toni Remnue &cnds 48,785 21.174 non gementandh vebeendiscuswdwithCennof Momgement

- does nof beheve there will be ony meenal eMeet to the Authonty Tetal Corr mercel Paper cs o resuh of these ouda and Mnkbonds

$ 207,514 $ 175.831 s a wri e c o c e s Q a., v a i a g r e e t J

I Note 8 Commitments and Contingencies:

Note 9 Retirement Plon Budget - The* Au'hority's copi*al budget provides for Substonicity oil Aa %n'y fulthme employees must patcipoie in r

onpenditurn of opproumoiety $276.500.000 danng the year

+be South Corohno bremen' Sysiem rSystem1 o costshonng end ng Decrnber 31,1992, and $532,900 000 dvring the muinple empiover pubhc empioyee rebrement system The roytoll two years the ooiter.

tot employees covered by the System hst coch of ine years ended eder 31, nd 89 w s $5U2W h

Future Genetution - N Authorvs Board d Directors

$53,355,000 and $51,869.000, respect,niy.

acoroved if e construcnon of o second 540<negawatt cool fueled e;ect c generating unit of the Cross f1ont witn pswer h

Employees who renre at or c er oge 65 or have 30 years of generoson to begin no loter than May 1995.

se vice ore enntled to a renrement beneht, payeble monthly for hfe q e 1.82 percent of den omoge hnal compmoten.

The nnmeted cost of construchon is expected to total Bm os y vnt n recNng fie yees d m Vnied oppromm otety $509 7 milhon which includes $466 6 mdhon for he geurormg unit. $25.9 redhon for related transmson empeyees m y renre t oO and receive reduced renrement faciht:es, $t3 milhon for cool cor: ond $6 9 rr>dlion for the hts The Sys!em dio provides death end disabils benehn.

b b ** "

i ntial cc 1 s ncipde.

a Emp yees re required by Sno'e statute to contnbute 6 percent Property Acquisitiorss N Authonryisobtgotwtoocouire certo, propert es under the terms d a FERC mandateo "I 'Y '

^"'h "* * **""ed by se some swe e c mibute 7.55 percent d totoi payroll N conenbunon Compreheesno Emt gency Achon Pion (EAP) The cost of the cou sitions connot be cetermmed or this tirne, howew, the rmmmmt ce ! de yems en December 3 L M, 1990 ond 1989 was $4,449,000 $4,10?.000 and acovisitens o,e currently underway and are schedied to be

,8 on, e Au mhrement beehts and f;nchzed by Mo,ch 1992 All oAer requirenents d tne EAP hove baen compie'od.

$3.43 m $3,M8M and $3J 12,000 from employees.

Purchase Commitments - N Authorn hos contracted for An octuorial volvetion is performed for the System onnvolly. At 6e most recent voluonon acte. June 30,1990. the pension

,encyerm cod purcno3e5 unoer contracts wim outstond<ng beneht obhgonon for retr,d and octive members was minimum e3hgonens at Pecembu 31, 1991 oggmgonng a roximaiety $ 10.3 bilhen The omornzed cost of ossers of the opprcxirnetely $170 8 m : hon tnrough Decenber 31,2000 In System was a roximoiely $7.5 b.! hon. The unfunded<pensian odd: ton, thw Authonty hoc entered into shorta rm ogreements e

obhgonon wos opprommoWy $2.8 bilhon. The pensen beneht -

to purchase 1,311,000 ic,s of cod through June 20.1992.

The Av'hont, wxpects o hnah e new long term cont ocn pnor I obhget on is a standardend daciosure measuco d the present 2

value d penuon benehts, od usted for the ebets of proected i

solary incrooses, eshmoed to Ee payable in ttse future os a result The Authoroy is invdved in br'gonon woh two cod componies d employee sennce to dove. N measure, which is on octuorial regordinc, long+crm cool controcts laot included in the nun mum present volo of credded protected benehrs, is intended to help obhgor>ons raennoned oboveh N cor4frocts provide for dehve y ustrs ossess the Sy; tem funding uots: on o gomg<oncern bosa, of 4 25 mit.on tons of cool danng the pened from 1991 to ossess progress mooe in occumdonng sunicent osser. to poy 2004 As e ressit of the htigaton, cool dehvenes were suspended benefm when ove, and make componsons chong pubhc N e e vendors on Augsst 14.1901. The Aumorw nos deter-employ,e retirement systems. The Syvem does nor mate seporate mined mot sources d cool are avoiiobie lo purchase repiocament measurements of assets o,d benehts pcnable for individud cooi a' compentive paces on on as needed basis.

employers, The Authority's contribution represented

- The higation ogomst tne hvo cool componies involves maleple ppr ximoiely % perent d 6e t mi e ntnbunon e de b'"

do.ms and i ounter claims. Mosons are pencing in the south Y

Corobno Supeme Court and the Unaed Stoies Court d Apoeols.

Ten.veor histoncol tiend informanon showmg the System's Pursuant to Worronts of Attochment issued by the Berkeley progros in occumulatog suscient assets eo pay benehn when Couny Cleri d Court, payments on ochvenes d cool from April due is preserad n the Spiem's Jure 30,1991 comorehenove h

through Ae9,t 14,1991'orolling coorommoWy $33,063,000 annual hnoncial report.

)

have been g oced in at mterest beonng occount at +e South Carchno Nonono! Boni pending outcome of tre bngonon. Tne Noh 10 Other Post Retirement Benefitst Authon'y W unable to predet the outcome of this hngot;on.

according y, ommg reionve to th.s ht gonon has been recorded The Authonty provides cenoin heolrh core, dental, and hie l

irsuronce benehts for renred persons. Subsionnolly di d the in tne eencal statemen's Avhonty's emplcyees moy become ehgible for these beneh's it The ActFon9y s outstancog mmimum obhgrens under exisnng t*ey are age 65 or have compiered 30 years of employment.

I; ocproomovly 3145 7 rnahon threugh March 2035.

purchased power contracts os of December 31,1991 were N cost of retiree heotth core, dental, and hfe insurance benehts is recognaed as e < pense os the premiums are po4d. For 1991, N Aehor@ hos comm.m,ents of opprownctej $12.3 m3 ion 0 ed W8% Ane cosn em4d $32% $2R000 under the jomt owners *ep agreemsnt wah SCE&G ter the no $215.000, respect veiy.

purchase, ccnvers on. ennchment and fabriconon of uraniurn N Authonry als6 provides deferred compensonon benehts to

m e Q. w a.

wit u.ce-

i a

cewn employees who ore eligible e retire with ien years of. Note 12 $torm Domoget service end have reached the age of 50. The coc of thew berwfits are occrued on on octuarioll, determined be:,is, As of pwm 21, N, h Akiys sysem was p hsen%

December 31/1991, bre werv 45 ochve participonts. The domoged by Hunicane Hugo. Throug,ti December 1991, the octuonal occrued bobik'y or December 31,199 I and ? 990 was AVA*'y hos ineuned opproximotely $22.4 miliion to repair nd tePoce comoged focildes and systems. Substantio3y oil l

owroxime ely $2,o76.000 ond $2,307.000, respecttveit sur.h costs have been funded by insurance proceeds and federal Note 11 Credit Risk and Major Customerst f **'9'"CY ^"'#" 9*' -

Concentrohons of creda risk with respec+ to occounts receivabit E*AV'h*"Yd "# P'C' D '"C **s due to the impact ore limitud due to the large number of cusemers in the Autboriys d Hurne ne Hugo and foresees no moosuroble longerm vmpoct

" dS *P*" "8 0' the dem nd for electnc ty by as cusiomers.

emamer bose and the;r dispersion coss dAerent indurrex ~

The Aur ony maintoins on allowonce for lones based upon the Note 13 1991 Revenue Bonds: '

emected collebihty c4 oil occounts receivable.

On December 21,1991 the AuthosiVs Boord of Directors Sales to two rnojor cusemers for the years ended outncmed the sole of $350,000,000 Revenue Bonds,1991 December 31, were:

Smes D (1991 D Bonds). The 1991 D Bonds wfne cioned on January 16,1992. The 1991 D Bonds proceeds plus accrued y,99 39,3 m,

mterest of $2.834.259 will be used fer the construction of the (Thousonos)

Crou No. i unit of the Crou generating stohon Bond proceeds of approumovly, $ 30.000.000 will be usad to ret ><e outstonding c,n,ro; g;.ane power Commercol Paper noies inued previously for the Cron No.1 Conwatn, Inc.

$ 242,000

$ 225 000 $ 221,000 proiect.

Alumon of South he 1991 D Bonds were sold e on oil end true interest cost of Co< rana. Inc.

$ 88,000

$ 84 000 $ 82.003 6.73% and are due July 1992 to 1997 to 2002, 2006, and 2014. 2024 and 2031.

Dunng the th e+ year pened ended Decem' er 31,1990, Alvmox t

of South Corolino;lnc, was enned to receive, under the controct orandment do'ed January 1,1986, rote rehef up to $17.c milhon per year. The rate reduction is ovoilable if the overage morWy price of cluminum is $ 62 (1986 dollars) por pound or below provided Alumox operoies of o specified lood. Alvenex must begin to repoy the rote relefif the pnce of aluminum is $.72 (1986 dollars) per pound or more During b period 1991 through 1993, Alure,on is required to repoy such granted net rate rehef in the month}y amount of $1.467 milhon for any month in yhich the pnce of cluminum equals or exceeds $.72 (1986 doliars) per pound.

- No rate rel.ef was gron'ed to Alumox in 1991, rehel granted fotolled $4.4 million for 1990 and there was no rate rehef in 1989 LAN ff rCOfft A re s u a t etPOtt

,