ML20101M526
| ML20101M526 | |
| Person / Time | |
|---|---|
| Site: | Catawba  |
| Issue date: | 12/31/1991 |
| From: | Bobo J, Clay G NORTH CAROLINA MUNICIPAL POWER AGENCIES |
| To: | |
| Shared Package | |
| ML20101M503 | List: |
| References | |
| NUDOCS 9207080272 | |
| Download: ML20101M526 (34) | |
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NCMPA 1 Annual Report Table ofContents _. About NCNIPA 1. .2 Electricities Duke Power Company The Particip<mts NCMPA 1 Message .3 Questions with Ansuersfrom the Chairnum and General Afanager NCMPA 1 Vision . .5 Perception is reality. Savings on demand. The difficulty in hfe is the choice. Agency savings and grassroots heroes. NCMPA 1 Plants . .7 Catawba Nuclear Station Umts I and 2 AlcGuire Nuclear Station Units I and 2 Board of Commissioners . .8 Commissioners Alternate Comminioners 1991 Ojjicers and At-inige Executh e Committee Afembers AIanagement Stalf NCMPA 1 Finance . 10 Port folio Statistics Debt Statistics NCMPA 1 Map & Resenues . 1I Participant Revenuesfrom Sales Independent Auditor's Report . 13 NCMPA 1 Financial Section . .1 -1 Front Cover Photo: Opening nightfor the Gastonia Rangers at Sims Legion Park. The City of Gastonia brings light to the Rangers ' nighttime games. The Rangers are a Class A farm teamfor the mcfor league Texas Rangers. 1
i About NCMPA 1 Since 1983 NCh1PA 1 has been the all- Duke Power Company , requirements power supplier for 19 participating NCN1PA 1 has 75 percent ownership in ( municipalities in the Piedmont region of Nonh Unit 2 at Catawba Nuclear Station, one of three i Carolina. nuclear plants built by Duke. Under the agency's j Thmugh their representatives on the 130ard of contract with Duke, the utility company is } Cornmissioners, the municipalities control their responsible for fueling, operation and capital l power supply and rates. additions. Duke is also contractually required to ! NCh1PA 1 has important relationships with provide NCN1PA 1 with additional (supplemen- i these entities: tal) pow er. The power agency has two reliability Electricities c>. chance agreements w ith Duke to ensure that ElectriCities, a non-profit service association panicipants have sufficient power to meet their l in Raleigh, provides management staff and needs. services to the power agency. The staff cames The exchance agreements allow the
- - out the agency's daily operations, w hich include agency's ownekhip entitlement for power to be financing and accounting, contract administra-thstributed in equal amounts from four units -
tion, rate setting, billing, planning and budgetir.g. tw o each at Catawba and N1cGu!x nuclear In addition,it closely monitors Duke Power stations. The agreements eliminate the risk of f , Company's performance and its fulnliment of dependence on a single unit. ! project obligations. ElectriCities also provides panicipants with The Participants ;
- load management recommendations, and aid Each of the 19 panicipants esecuted a with mtail rates, communicatic ,, marketing. Project Power Sales Agreement with the agency.
i safety, training and technical assistance. In these agreements, the municipalities agreed to j
, , , pay for 100 percent of the agency's ownership project costs. These "take or pay" agreements ;
- require payment to be made w hether or not the f power contracted for is received from the i l
project. The agreements are the security for the agency's bonds. Each participant also signed a Supplemental i - Power Sales Agreement with the agency.These agreements are "take and pay." and require payment to be made only for power actually received. Under these agreement < a participant agrees to purchase all of its electric power from , -\ the agency, over and above its ownership
- entitlement. It excludes any power made f' available by the Southeastern Power Adminis- (
tration (SEPA). SEPA is the regional federal ! A lineman at work. marketing agency for hydroelectric power. P 2 ;
N C M s' A 1 Messaye fr .. in the C h a i r in a n and General Manayer the public power movement and introduced an e la ,- a extra element of competition that has benefitted all ratepayers in our region. We could not anticipate, of course, that a
"- slowdown in our region's growth would allc iv v '
,'y Duke to curtail its plans for extensive plant construction. Neither did we expect that private
, utilities would receive major tax breaks that they w ould be required to share with their retail
' ' ratepayers. These developments, coupled with s
. . '. mounting aggressiveness by natural gas compa-nies and other energy suppliers, have stiffened
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the competitive challenge facing our public power utilities. Many of the important steps taken by the power agency in 1991 are designed 1 to help our panicipants succeed in this new
/ environment.
Chairman George W. Clay, Jr., standing, and General AfanagerJames T. Itoba. Ot fleginning in 1996, Duke Power Com-pany will enda large part ofi s power Ot in July I983, NCAIIM i became whole' purchasesfrom Catawba Nuclear Station, sale power supplier to 19 cities and towns in leaving NCAIPA 1 panicipants with excess Piedmont North Carohna. Ihn does today's generation. flow will that afect participants competitive environment compare with the one of and what is NCAIPA 1 doing to resolve that nine years ago? situation ? Mr. Clay:The competitise environment Mr. Bobo: One of the strengths of our has changed significantly over the past nine pow er supply arrangement has been the agree-years. ment that has allowed us to sell to Duke some of Before the power agency was formed, our our baseload power from the Catawba Project. cities and towns bought their power from a During the early years of the project, proceeds regulated. monopoly industry. As w holesale from these sales have enabled the power agency customers, we had little voice in our pow er to build up a substantial rate stabilization fund. supply and were concerned mainly with keepinF This fund will help us absorb increased costs as rates within reasonable bounds. the sellback arrangement is phased out. With our supplier Duke Power Company, This farsighted approach has made it possible expressing uncertainty as to w hether it could for our participants to maintain retail rates that meet the future needs of its municipal w holesale are competitive with other suppliers. customers, we fomied the power agency to in the meantime, s igorous efforts continue to assure our communities' citizens a reliable, stable find markets for our surplus Catawba energy or power supply. This positise step strengthened Co n tin u ed 3
, . .- - - - . _ ~ ~ _ . _ ..- . ... - .. - ,
s 1 h- ~.+-s--.,.u w- ,., . ..o sa v to othenvise reshape our power supply to the ment program, How will this prognun benefit
- economic benent of our panicipants, panicipants?
Mr. Bohot What this will do, frankly,is Q: How does NCMPA / plan to help its aluip our panicipants wi,h some of the tools participants remain competitive with other and strategies that other utilities - including powersuppliers? . their own competitors - have use d and are
.. Mr. Clwys The effons Jim just mentioned using to improve their markets and lower their are only one pan of a comprehensive program costs.
that _our Boani of Commissioners has authorized Some programs are concerned with expand-to help our cities and towns s6y competitive. ing our panicipants' customer base; others with For the past several years, we have achieved making w ise use of electricity. We belics e the , ' meaningful savings through arbitration of the success of our residential and commercial load power agern y's agreements with Duke, and management programs has built a solid base
. these efTons will continue. from which to launch these exciting new effe-ts.
Recognizing that being competitive em-braces much more than rates, we have begun Qt What other developments were there in new activities and expanded others to help our 1991 that con'ribute to lowerpower cmtsfor _ participants carry out effective customer rela- particircmts? tions, system betterment, marketing and Mr. Bobo: For one thing, the agency's
; economic development activities, construction fund was closed out with a balance On the legal front, the power agency and of more than $19 million. These dollars wcre other emowners of the Catawba project will used to call bonds, resulting in debt ser ice continue to seek relief from Westinghouse for saving, of $1.5 million per year through 2003.
steam generators at the Catawba and McGuire We also take pride in how we manage the plant's that will have to be replaced pnor to the agency's por: folio. During 1991,the power expected senice life of the plants.' agency's investment earnings totaled $63 mil-
, We 0%o are looking at a plan to "levelize" lion. We recently installed an upgraded rate increases over the next several years. This ponfolio software package that will enable us to
. appmach could help our panicipants in their broaden the scope of potential investments. It is
' budget planning- the same way equal- conservatively estimated that investment payment utility billing makes it easier for earnings will be increased by $200 000 annually
- homeowners to do their household budgets._ as a result of the new r.yster These are a'few of the many ways the Mr. Clay: What we have been describing agency is working to help our particip.mt3 are some of the reasons that our power agency is
, succeed m an increasingly challenging compai. recogni?cd as a standard-setter for the publ;c
'tive environment. power movement. We are proud of this image,
!. we have earned it and we intend to enhaace it i .Q: In late 1991, NCMPA 1 commissioners as we meet the many challenges facing our -
.- approveda $l.07 million demandside manage- panicip;mts
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i l N C Al P A I Vision Portoption is reatity, join. training 100 employees to date. Special courses are aimed at elected officials, managers, in 1991- 1ront-line and field employees, and managing
- 105 municipal olGei.ils attended regional high bill complaints.
meetings on customer service and marketing. The message w as elcar: Power ayeney panici- " We don 't have a monopdy on any municipal pants must proside extraordinary customer Aen ice any more. And that includes sanitation. sen ice to compete wiih other pow er supplica. electric and r 9tural gas. The one thing that wi#
- The power agency's "Public Pow cr: Your distinguish us from the others is service.
Ilometown Connection" campaign won the y g y,, nternational Association of flusiness Communi- Wikting Eng n CitMn% ton cators' (IA13C) Siher Av ard in state
.e competition.The campaign introduced m s g
August 1990, is a continuing effort to promote the benefits of pt.h'..e pow er in North Carolina. In 1991:
- NCMPA 1 participants promoted Publie
- Load managenrnt savings from residential Power Week in record numbers with bumper programs, voltage control and other eiforts sticker contests, T-shins, school safety demon- totaled $6.2 million, $650,000 more than in strations and newspaper articles and 1990 advenisements.
- lhe power agency hired a marketing manager
- The 11b-page Public Power Conununic ations in 1:cbruary.
Handbook was hand-delivered to each of the 19
- Residentialload inanagement progntms participants. It features ready-to-use new s contmued to enroll customers, fly year-end,17 -
releases, tips and graphics. of 19 particip;mts had a residential program. In
- Customer senice f raining w as staned. June, a marketing handbook was distnbuted Inington was the first NCMPA 1 participant ta during a day-long v.orkshop on load manage-ment strategies. The handt.ook includes camera-ready advenisements and other promo-
'e v '6 tional materials.
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- Elected officials attended a session on gy qgfM Mas nHW:
ko c m331 strategic marketing at the Annual Meeting in Sp.sA-m jggm a")yg August.
- The lloard of Commissioners in December approved a $1.07 million budget for 1992
"'N %( ..JJ demand. side management programs. An emphasis on strategic load grow di, the first for the pow er agency, and water heater and heat pump rebates, will be the program's focus.
NCMPA i has 75 % ownership interest in Catawba l! nit 2, operused by Duke Power Cornpany. Co nIin u e d 5
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from the apeney 's eight-member rate conumttee. s p.' sw w ag ?.:{ ,, a
. , .py Agency savings and 3' grassroots heroes.
x in 1991:
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- The NCMPA I construction fund was closed-T
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-$g out with a balance of $19.45 million. The
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.9vN' balance w as used to call bonds resulting in debt pg. 4 9 L 'MMm g,M, service savings of approximately $1.5 r'illion z.- . . . ..y 1 ~ ' 3 5
-SM y per year through 2(W)3.
e power agency prmided signiGeant input
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. l7 :;. on federal legislation insohing the Clean Air Act, OSli A contractors, federal energy strategy * '
N.C, State SenatorJ. Richard Conder and Alice and electrie and magnetic Gel.h (EMi<.>. i Garland, director ofgewernment affau.s, discuss l pendinglegislation.
- More than 170 guests attended a reception in J April for state legislators.
The difficulty in life Is the choice.
- Municipal officials represeming IS partici-pants wcre members of a pubhc power i In 1991: grassroots netw oik, and made contacts as
- The ikiard of Commissioners soted to needed with their legislators.
increase wholesale rates by 4.2 percent, effective
- State legislation allowed NCMPA 1 to use a July 1,1991. mortgage as a debt instrument for non-electric l
- Cost review s involving billings with Duke pencration projects.
produced cost reductions to NCMPA I of
$63,000. -
h NrMPA l's wholesale rates cover the cost ,j of project pow er supply ownersh.ip and opera-tions including fuel. purchases of additional or k bl !$ .
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- r N'T ' L < U supplemental power supply needs, administra- g tion and general expenses and any taxes levied by state and local governments.
Other power needs are supplied for most %- - participants from alk) cations of hydroeleetnc . generation by the Southeastern Power Adminis- The "TaAe the Credit" campaign promotes residential trution, a federal agency. load marragement to cu stomers in Monroe and in eiglet other NOllM i communities. 6
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-.y McGuire Nuclear Station. Lake Norman, h arth Carolina.
Cotawba Huclear Station McGuire Nuclear Station ! Units 1 and 2 Units 1 and 2
- Where: Lake Wylie, SC - 17 miles
- Where: Lake Norman - North of southwest of Charlotte, NC Charlotte, NC I l
- Fuel Type: Nuclear
- Fuel Type: Nuclear MNDC*- l 129 mW per unit *
- MNDC: 1129 mW per unit * *
- Commercial Operation:
- Commercial Operation: i June 1985 (Unit 1) December 1981 (Unit 1) t August 1986 (Unit 2) March 1984 (Unit 2)
Unit I completed its Ofth scheduled refueling Unit I began a scheduled refueling outage outage from March 21 to June 14. As of March September 20 and completed the outage Decem-l 20,1992, the unit was continuing a station record ber 10. Unit 2 had a 96.2% capacity factor in , i of 168 days of continuous operation. 1991. Unit 2 began its third refueling outage ' NDC i"ntnimum nel dependable capability, October 18 and returned to service December 23. the mcuimmn output that can be c2pectedfrom a l g
, - generating unit u hen it is operating atfhlt C capacity, less the requirementsJbr mailiaries.
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t ;u e l u t g challenginy this change, and negotiation: are i f llg lll lg _ inside Catawba Nuclear Station. 7 l _ _ _ _ _ _ _ _. _ _ _ _ _ _ _ _ . . - _ ~ . . - - ~ _ r
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' N C Al PlA 1 Board of C o m m i s s i o n e r s -
and M a rl a g e m e n t Staff , r
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l -COMMIS$ LONERS 8 ' - y Robert 11. Chnate - A. h. Patterum. Jr. 1WI O}TICERS AND , Council MemNt A>si . tant Pubhe AT.LARGE EXECUTl) E Raymond L Allen mrganton hk Ihrector CO\l%IITTEE \lEMin Rs City Manager - landis Albemarle - ~ Richard L French Chairman . George M. Cla3 ' City Manager Vernon G. Price, Jr. Jr, Mayor. Shelby
- E. M. Shearon - ' Newton , htayc Council Member t cungten Yke Chairman . A. W.
Ikztic Mary Ann Creech lluffman, J r. Mayor, Granne Town Adminntrator H. Duk. E hiwnant - I ath Janice Hons Pmeville City Manager City Manager Lnington Secretars. Treasurer . Cherryvdle George W. Clay,Jr. R. Duke % huenant. Mayor - Jerry L Campbcll City Manager inmgton James L Dorton Shelby Mayor
;Akterman leicolnton Memben At Large:
Concord Arthur E. Peterum Couned Member Manhall E. Shepherd Morris llaker. Tow n Nannie Potts - Statesville - Town Manager % nager. Dresel Comnunioner Maiden
- Cornebut ALTERNATE Gary D. Ilicks, City mrager.
COMMISSION ERS " Ikm Mitchell G.6tanu Morris Baker Electntal Lkettor Town Manager . Tidus Stanhack Wnrue Janice limis, City Manager. Ikesel . Council Member Chern ville Albemarle Ja3 Coffey Gary D. Hicks Ducetor, Pubhe Cuhties Arthur E. Peterwn, Council City Manager - Jack I' Neel Wrganton Member. Steeni!)e Gastonia Cotmcil Member
, Albemarle T. Jack Matthews
_.?- ' A. W. Iluffman, Jr. . City Engineer M \N AGDIENT STAFF Mayor . 1 Jack Rich,Sr. New ton
- Granite Falls . Council Member James T. Hoho Bostic Douglas W.Tyndall General Mauger jf ' Roy B. Culler, J r. .
Mayor ?' ; Mayor . John E. McGinnis Pmeulle William 11. Batt s
-, Iligh Ibint - CouncilMember Director - hnance and Cherrysille Stephen S. Ha3 ster Adimmstranon
- Bobbie C.Ross . .
Counett Member aj sMaycr ? , Benny J. Orders Shelby Jack S. Childs fluntersvilld-- Alderman Dmtor - Communicanon, s Dresel Smith D.Lingcrfett
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' Bobby O. Wund Electrical Supermtendent Alice D. Garland gw - PuNic Works Direciar . . Jack R. Clark Shelby thrector - Gmemment Affairs
@e I;mdis Commmioner Gramte Falk I.arry M.Cranford Arthur I Ilubert.Jr.
" L Klynt Ripple ~ Ekctncal Utihty Director Director - Operatam and I
< Utilities Commission Member Linda K. Story Statesnile Scnices
* >^ , Le6ngtv^ Town Manager
. Granite Falls % liliam G. % emhotT m Stephen 11. Peeler ' Director. Power Supply Directorof1%bhc Works - .II. Lewis Price Planning
- and Utilities City Manager Lincthston - ' High Point D. Ray Walker Lloyd D. Shank, Jr.
~, _ - Council Member ' threctorof Electric l'nhties Maiden - High Point
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- Jerry E. Cm - - Ed llumphries
- City Manager Town Manager Monroe Huntersville-I.
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and +1mimuratmn Coawaunnatums Ahre D. Garland Arth M sIhane G. W eenhoff thces t.er I Hubert, Jr. G._Dms.f.or Aum. ws . O_peramms arxt ~. sWrec.t,w m n _.., , 9
J NCMPA 1 Finance In November 1991 the Board of Commiwon-
- Transactions Number Amount ers determined that the monies remaining in the 1991 1,(XX) $8,523,928,512 Construction Fund w ould no longer be needed as 1990 768 7,470,791,4(M ,
all costs of acquisition and construction, as defined in the Bond Resolution, had been met. Debt Stalistics: The Board directed that the excess, $19.45 mil-
- Debt Value Weighted Average lion, be used to call bonds on January 1,1992, Outstanding (Housands) Interest Cost under the extraordinary redemption option on December 31,1991
$2,473.222 8.03'k most of the series of bonds outstanding.
Also, a new investment portfolio managemens December 31,1990 2,494,242 8.02 and accounting software package was purchased in the fourth quarter and will be fully operational
- Ilond Reconciliation m the first quaner of 1992. The new system will Bonds Outstanding 12/31/90 $2,494,242,tXY) allow grencer flexibility in investing in various Matured I/1/91 - 21,020,(XX) instruments with special features which are Bonds Outstanding 12/31/91 $2,473.222,tXX) allowed by state statutes. Tiu,s should provide a higher r*tum on im'estments by expanding the *For E:'rnings and Market Vahoe, amounts uy Juniverse of secuzitnes which the agency could include incomefrom and market value ofsecuri.
i 'inchidc in its ponfulio. ties heldin the decommissioning trust. The Ixal Government Commission, a division of the Department of the State Treasury, Honds Outstanding 12/31 is involm!(u all phases of the ageryblebt
- Series 1990: 5284,795,000 y = <
financings, taonkors the financial condition of the
- Series 1988: 401,482,000 Y agency mid participants, and has statutory
- Series 1986: 260,195,000 m authority to rcquire power agencyiserved cities to
- Series 1985B: 632,510,000
,. seteh:ctric rates sufficient to meet their contrac-
- Series Iv85A: 68,475,0(X) tual obligations to theigency.
- Series 1985; I38,720,(XX)
- Series 1984: 83,535,000 Portfolle Statistics's~
- Serics 1983: 31,155,000
- Series 1982: 25,(XXMXX)
-
- Earnings ' beome Rate of Retum
- Series 1981 28,970,(XX)
.1991- - $62,525,762 8,29'k
- Series 1979: 141,960,(X10 1990 65,058,129 8.94
. Series 1978: 376,425,(XX)
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- Market Yeam Value . Average L as of 12/31, Value . Maturity l !991. $874,746,283 -4.50 1990 3114247,409 3.51
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4 3 r/ North Carolina Murg:ipal P:,wer Agency #1 .
- p. rw.i Grtm Revenue City Customers From Sales Albemarle 10.467 $ 15,456,462 Bostic !73 137,288 l
l ChexTyville 2,339 3,785,829 Comelius 1.092 1,217,279 l Drexel 1,095 1,1 I 2,MO Gastonia 22,710 36,698,952 Graaite Falls 1,752 2,767,677 ! Ifigh Point 30.696 52,037,114 liuntersville 1,117 -1,5(M,210 l Landis 2,445 2,352,427 Les 'gton 6,252 27,871,206 I incolnton 2.535 3,762,685 Maiden 930 3,525,687 Monroe 8,265 22,820,941 Morganton 7,253 16,018,699 Newton 3,683 5,222,534 Pineville 2,073 3,i14,269
- Shelby 7,738 10,956,984 Statesville 11,241 24,062,407 I Total 123,856 $234,425,290 l 11
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"Ifyou want to succeed you Shotthi Strike out on newlna!hs ratherthan travelthe vornpaths o.
ed succc5s. " John /). Rockefeller 12
I n el e p e n el e n t A ualit a r *s Report Ikurd of Conuniuioners North Carolina Municipal Power Agency Number 1 We base audited the accompanying balance sheets of No th Carolina Municipal Pow er Agency Numis I as of December 31,1991 and 1990 and the related statements ot'ses ennes an 1 espenws and changes in fund balance and cash flows for the years then ended. These financial statements are the n sponsibility of the Agency's management. Our responsibihty is to esprew an opinion on these financial statements based on our audits. We cond.neted our audit in accordance w ith generally accepted auditing st ndards. Those s'aralards require that we plan and perfonn the audit to obtain reasonable awurance about w hether the financial statements are free of material misstatement. An auJit includes exatnining, on a test basis, evidence supporting the amounts and disclosures in the lir,ancial statements. An au lit also includes assessing the accounting principles used and significant estimates made by manage uent, as well as evaluating the os erall financial statement presentation. We believe that our audits prm ide a reasonable basis for our opinion. In our opinion, the financial statements refe:Ted to above paesent f airly,in all material respects, the financial position of Nonh Carolina Municipal Power Agency Ntunber I at Decemtvr 31,1991 and 1993, and the results of its operations and its cash flow
- hv the s cars then ended in conformity with generally revepted a$ counting principles, Our audit was made for the purpme of fonning an opinion on the basic financial statements taken as a whole. The Schedu..s of Changes in Assets of Fun:Is Invested and Res enues and thpenses Per llond Resolution and Other Agreements are presented for purposes of addiuonal analysis and are not a required pad of the basic financial statements of North Carolina Municipal Power Agency Number 1.
Such infonnation has been sulyected to the auditing procedures applied in our authis of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a w hole.
'f Raleigh, North Carolina March 13,1992 l
13
4 l i i No rt h Ca rolin a M u n icip a l l'o w e r A g e n cy Nu nt h e r I fl a la n c e S h e e t s t 5aoos > DecenAcr 31, ! 1991 1990 -l Assets ! 6 Electric Utility Plant (Notes 11 and C): ! Electric plant in scnice, net of accumulated i depreciation of $234,130 and 5193.641 51,171,805 51,205,N74 Construction work in progress 5,895 9 # 11 , Nuclear fuel, net of accumulated ; amortiration of 5166,937 and 5143,355 67,345 71,201
~ 1 d45/)45 'i386476 f
- Non-Utility Property and Sjulpment, net '
_ (Note II) ' 2,100 2,(& Special Funds invested (Notes 11 C D, and F); + Construction fund - 18,95fi i liond fund 347,272 319,898 Reserve and contingency fund 21,602 21,641 ; Special reserve fund . _ _ _ 1,1 19 ___ 1,l_47 ; 369,993 361,M2 Trust for Deannminioning Costs (Note 11) 26,359 21,725 I Operating Assets: I unds invested (Notes 11 D, and 17): ; Revenue fund 343,OM 296,689 , Operating fund 85.nt3 78,140 Supplemental fund _, 18 476 50,101
- 446,583 ..,e424,930 l
i lL . E Participant accounts receivable 14,281 12 +50 Operating accounts receivable 15,008 20,278 , P rpaid expense- _ 38,440 _ 41,875 l l 514.312 499,733 ; l I l Den cred Costs (Note 11): p . Un unoitized debt issuance costs 41,168 41,944 L En ess cost
- on advance refundings of debt ;91,988 198,928 l> Net costs to be recovered irom future i billings to particip mts (Note E) ___46,585 44,126 52,437,650 52A56.870 See notes tojimmcial.uatements.
14 . g
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. _ _ _ . . ~ . . . _.~.m.m.. _,. .__ _ _ _ _ _ . . ._ _ __ . __, ,
---.--m._
Dntmher 31, 1991 two Llubilities and Fund notance long Term Debt: 13onds, net of unamortired discount (Notes 11 and it) 32,256,8 t o 52,296,948 Special1 unds I.iabilities: Construction payables 42H Current inaturities and redemptions of tends (Note 17) 42,600 21,020 Accmed interest on tends 90.349 84,n17 132.949 105.495 Liability for Decommiwioning Costs (Note 11) 26,359 21,725 Operating 1.iabilities: Accounts payable 181 456 Accrued taxes I l.273 9.624 11,454 10,0S0 Commitments and Contingencies (Notes O ar.J l1) l'und llalance 10.078 22,622 52.437.650 $2.456.870 15
www North Ca rolin a M u nicipal Po we r A g en cy Nu m be r i Statements of R e v e n u e s a n <l 1.2penser a n ti Changes in i u n al ll a l a n c e ($tHbos1 Year l'nded ' thremtwr 31, 1 1991 1990
,p O i vrating Revenues:
$176,354 Sdes of electricity to panicipants Sales of electricity to utilities 262,456 5166.561 266.056
(. 438,810 432,M7 Operating lit penses: Operation and snaintenance 77,028 68,229 Nuclear fuel 28,805 30,244 1nterconnection services: Pure'wsed power 121,469 106,903 {- Transmission and distribution i1,861 11,374 Other 232 231 133,562 1 I F.50M Administmtive and $c, eral 23,405 18,721 Grow receipts and e oc tases (Note 11) 8,001 7,623 Propeny tas (Note 11) H,9 M 7,522 Depreciation 43,443 42,2M 323,208 293,111 Net 0;rrating income 115,602 139,536 Interest Charpes(C edits): Interest etpense 180,917 1 h6,07h Ainontration of debt refunding costs 6341 5,637 Amonir.ation of debt discount and issuance costs 3,266 2,343 Inve.stment income (60.480) fM,982) Net interest capitalized (Note C) .. J39) 70 130 (d)$ 129,I46 Net Costs to be Recm ered Irom Future llillings to Panicipants (Def erred Res enues) t Note II) 2.459 (28,924) Deliciency of Res enues Over tispenses (12,544) (18,534) Fund llalance, beginning of year 22,622 41,156 Fund llalance, end of year 5 10.078 s 22.622 See notes sofinancial statements. 1O V -
l N o r t it Ca rolin a Alu n icipal Power Agency N u rn b e r I Statements of C'a s h Flo u s t$UUOs6 - - - -- - - - - - - - - . -
-~ - _ -
. - - - . . . . . - - - - - - - . _ . ~ ~ . - - - -
Year I:nded Ihrember 31, 1991 1990 Cash llows from Operating Activities: Iteceipts from sales of electricity 5 434,735 5 436.559 Payments of operating expenses (241,073) (218.372) 193.662 218,187 Net cash provided by operating activities Cash I-lows from Capital and itclated l'inancing Activities: 284,795 llonds issue Ilonds retunded (232.030) Interest paid (174.615) (185.588) 0 0.298) Itc lundirtTrust I und rettoirement Additions to ciectric utility plant and (25,854) OK,125) non-utility propeity and equipment (21,020) ( 5,6'A y lionds retired Investment earnings receipts f tom construction f'ind 60 23M Debt di., count and issuance costs paid (128) (34.832) Net cash used for capital and related (221,557) t 241,530) linancing activities Cash flows from insesting Activities: 7.969.611 7,217,757 Sales of im estment securities ( 7,993.(H9) (7,247,253) Purchases ofinvestment securities Investment carnings receipts fros..
$ 1,323 52,838 non-constniction funds 27,885 23,342 Net cash provided by im esting activities Net Decreaw in Cash and Cash Fquis alents (10) (I) 20 21 Operating Cash, beginning of year Operating Cash, end of year (Note D) 5 10 5 20 See notes tofimmctal statements.
)
i 17
1 It No rth Ca rolin a M u nicipal Po w e r A g e n cy Nu tn b e r 1 51 ss t e ros e rs t s of Ca s h flo w s continued ($000sp _ _~ .- Year Ended Ikcember 31 1991 1990 Reconciliation of Net Operating Income To Net Cash Pmvided by Operating Activities: Net operating income $115/d)2 5139.536 Adjustments to reconcile net operating income to net cash provided by operuting activities: Depreciation . 43,443 42,2M Amortization of nuclear fuel 28,805 30,244 Changes in asarts and liabilities: (Increase) decrease in participant accounts receivable (1,631) 2,827 Decrease in operating accounts receivable 5,270 2,296 Decrease (increase) in prepaid expenses 3,435 (2,453) (Decrease) increase in accounts payable . (2,911) 2,4 34 Increase in accmed taxes _ 1,649 1,039 Total adjustments 78 (Kd') 78,65i Net cash pmvided by operating activities $193/62 5218,187 Scinotes tofimmclalstatements, i 18 e
No rt h C ct r <> lin a M oo n ic ip a l l'e> w e r A g en cy Number i Notes to l' i rs se rt r i a l S t a t e rn e n t s
}rars I: n d r J 1) c c e res to r r .t 1. 1441 a n al 1090 A. General Mctneirs Nonh Carohna Municipal Pow er Agency Number i t agency 1is a joint apeney organierd and esistmg punuant to Chapter 159B of the Ocneral Statctes of North Carolina to enable municipahties owning electric dnuihution sy stems, through the organitation of the agency, to hnance, construct. ou n, opcrate, and mamtam eketrie generation and transmiwinn f acihties.1he agency h.n twenty memhen tuncteen (panici.
pants) which receis e p>wer from the agency and one w hich receis es pm er irom Duke Pow er Company 1 Duke). The agency has entered into sesetut agreements with Duke w hich pm em the putchase, ow nership, construction, oper ation, and m;untenance of the pnyect: 1he Purt base, Construction, ar'd Ownenhip Agreement prm ides, among other things, for the agency la purthase a 75's undaided ownership interest in l! nit 2 of the Cutaw ba Nuclear Statmn (suhons and a 37.5G undn ided ou nership interest in cenain suppn1 facilities of the station Ilow es er, by vinne of s anous prmisions in the Interconnection Agrecruent and the Operation and I;uct Agreement, the agency (I) bears the costs of acquisition, constmction, operation, and maintenance of 37.5% of t! nit I and 37.5'i of Unit 2, and (2) has the same propntionate npht to the output of and bear the rnks awoeiated with the lack of operation of suth unos. 1he Interconnection Agreement panides for the interconnection tetween DukeN clectric power sy stem and the agency's project and for the enhange of pmer between Unit I and Umt 2 of the station and between the Catawba units and Duke's McGuire Nuclear Station.1he agtcement also punides f or the purchase and sale of capacity and energy, and the transmiwion of energy to the agency % panicipants The Operation and I;nel Agreement prm ides f or Duke to operate, maintain, and fuel the station; to make renewals, replacemei,ts, and cap tal additions as appros ed by the agency; and for the uhimate decommh-sioning of the station at the end of its usef ul life. The agency N acquisition of its ow nership intetest is being "n.mced by the iuuance of electtic res enue bonds pursuant to Resolunon No. R-Ifr78, as amended,(resolution) of the Boaid of Conuniuioners of the agency.1he resolution estabbshed special funds to hold proceeds froin debt issuant e, such proceeds to be used for costs of acquisioon anst construction of the project, and to estabbsh eenain resen et the resolution aho established special funds in w hich project revenues are deposited .o d from w hich project operating costs, debt service, and other specified payments relating to the project are made. The agency has entered into a Project Power Sales Agreement and a Supplernental Power Sales Agree-ment with each participent, lhese agreements pnn ide for each participant to purchase from the agency its all requirements bulk power supply, in escew of pmer allotments from Southeastern Pow er Administration t SEPAL w hich includes its total sharr of project output (as defined by the Project Pon er Sales Apicement L lhe agency is obligated to pmvide all electric pmer required by each panicipant at the respectise deliscry points. Each puticipant is obligated to pay us share of the operating and debt senice costs of the project. The agency's participants receis e their total electric power,esclusisc of pmer allotments f rom SEPA, from the agency. Such power is prosided by project output topaher with supplemental purchases of power C .o ri t i n u e d 19
-_.- . - - - - . _ . - - - ~ .~.~. - - - . - - - - -.-- . . -
' i. i I 1 l fnun Duke. Pursuant to two" Reliability EschangetJ* contained in the Interconnection Agreement, project l output is provided in eswntially ajual arpunts from Cataw ba Unit 2 and three other nuclear unitHCataw ba ; Unit 1 McGuire Unit 1. and McGuire Unit 2)in operntion on the Duke system, all of sinular size and ; capaaty. The reliabihty exchanges are intended to make more rtliable the supply of capacity and energy to , the agency in the amount to w hich the ingency is entitled pursuant to its ownership interest in Cataw ba { Unit 2. and to mitigate potential adverse economie effects on the agency and the panicipants from i unscheduled outages of Canovba Unit 2. Correspondingly, the agency bears risks resulting frota [ unscheduled outage 2 of any Cataw ba or McGuire Unit. ! ElectriCnles of North Carolina, Inc. (ElectnCiticsh organiicd as a joint municipal awistance agency undet the General Swutes of North Camlina, is a public body and hdy corporate and pohtic created for the j purpose of providing aid and awistance to municipalities in connection with their electric systems and to _ jo'mt agencies, such as the ageney, The agency has entered into a management agreement uith Electricities. Under the cuiTent management agreement, ElectriCities is required to pros ide all personnel and personnel services necessary for the agency to conduct its businew in an economie and efficient manner. ;
~ B. Significant Accounting Policles fl a s is of A c co u n tin g
- 1he accounts of the agency are maintained in accordance with the Uniform System of Accounts of the i
Federal Energy Regulatory Commiwion, and are in confonnity with generally accepted accounting prin-
^
ciples(GAAPL lile ct ric Pla n t in Service ' All expenditures awociated with the development and ccnstruction of the agency's ownership intere* ir the Cataw ba station, including interest expense net of investinent income on funds not yet expended, have been recortled at original cost and are being depreciated on a straight-line basis over the average composite life of each unit's assets. Construction Work in Progress All expenditures related to mothlications identified prior to commercial operation and to capital addi-tions, including interest expense net of investment income on funds not yet expended, are capitalized as construction work in progress until such time as they are completed and transferred to Electric Plant in [ Service. Depreciation expense is recognized on these hems after they are transferred. ,- Nuclear Fuel All expenditures related to the purchase and cc nstruction of nuclear fuel cores, including interest expens net ofinvestment income on funds not yet expended, are capitahred until such time as the cores . ire -I placed in the reactor, At that time, they are amortized and charged to fuel expense on the units of pnduc-tion method. Amortization of nuclear fuel costs includes estimated disposal costs of 55,222JXK) and 55,056,000 for the years ended December 31,1991 and 1990, respectis ety. l Non - Utility Prop e rty a nd Eq uipmen t All expenditures related to purthasing and installing an in-house computer, jointly owned with North 20 _ _ _ , . _ , ,_ _ - .- _ _ _ __,,..___..-__.-_---_.m._ .. .. . - _ . . , __._ _ - _ -
- - _ - . - _ - - _ _ . - - - . - - - - ~ - . . .
Carohna IWtem Municip,d Pow er Agency (NCEMPAh has e been capitahied and are f ully depreciated Also included are the land and administratis e of fice building jointly owned w ith NCI.MPA and used by both agencies and tilectnCities. The administratise oflice buildmp is being depreciated over 371/2 ycars on a straight. hne basis. In ves tments Ins estments are carried at amoniicd cost. Discounts and premiunn, if any, are amonized m er the tenus of the related in estments in a manner whish yields a constant rate of return in those instances where market values are below amorti/cd cost, no panision ior loss has been provided since it is the agency's intention to hold the securities to mattmty.
- 1) c c o m m i s s i o n i n g Costs in 198x, the U.S. Nuclear Regulatory Commission (NHC) promulgated n gulations requiring that ca.h beensee of a commercial nuclear luwer reactor fumish to the NRC certincation of its financial capabihty to meet the costs of nuclear decommissioning at the end of the useful hfe of the hcensecN facihty. As a cu licensee of Cataw ba Unit 2, the agcncy is subject to the requirements of the NRC's financial capabihty regulations, and therefore has fumished ceni6 cation of its finandal capabihty to fund its share of the costs of decommissioning the Cataw ba Station.
In order to satisfy the NRC's financial capability regulations, the agency established an estemal trust f und (the "Decommissionmg Trust") pursuant to a trust agreement u nn Wachovia Ihmk and frust Com-pany. The agency's certification of financial capability requires that the agenc y make annual deposits to the Decommissioning Trust w hich, together with the investment camings and amounts previously on deposa in the trust, are anticipated to result in suf ficient funds being held in the Decommissioning Trust at the expira-tion of the current operating licenes foi the Cataw ba Units to meet the agency 's share of the decommis-sioning cost Ogure of $105 million per unit (1986 dollars) set fonh in the NRC regulations. The Daommis-sioning Tmst is irremeable, and funds may be w ithdraw r f rom the tmst solely for the purpwe of paying the a;;cncy's share of the costs of nudear decommissioning. Under the NRC regulations, the Decommissioning Trust is required to be segregated f rom the agency assets and outside the agency's administrative control. 'Ihe agency is deemed to have incurred and paid decommissioning costs as annual windrawals are made from the Deconunissioning l'und and deposited to the Decommissioning Trust. 11efe r r e l Co s t s Unamonized debt issuance costs, sh<m n net of accumulated amonization, are lxing amonized on the interest method over the term of the related debt. liscess costs on advance refundmgs of debt are defe red and amortized over the terta of the debt issued on refunding. Net costs to be recovered frorn future billings to panicipants are not amortized but will be reemered through future rates tSee Note E). I)i s c o u n t on li o n d s Discount on tunds is amonized over the terms of the related bonds in a manner w hich yields a constant rate of interest. Conrinued 21
Taaes income of the agency is excludable fmm federal income tas under Section 115 of the Intemal Res enue Code. Chapter 15911 of the General Statutes of Nonh Carolina esempts the agency fmm pnipeny and franchise or other privilcpe tases. In lieu of Noah Cumlina property tases, the agency pays an amount w hich would otherwise be asses;ed on the non-utility propeny and equipment of the agency. In heu of a franchise or privilege tas, the agency pays to North Carolina un anmunt equal to 3.22% of the gross receipts from sales of electricity to puticismts. Electric utihty propeny is hw;ated in South Carolina and subject to South Carolina pmperty tat An electric pow er escise tat equal to .054 (5/10 mill) for each kilowatt-hout of electric power sold for resale w ithin South Carolina is also paid. S t a t e m e n t s of Ca s h I'lo w s he agency has adopted cash dow reporting as required by Govemmental Accounting Standards lloard
- Statement No. 9.
For purposes of the statements of cash Hows, operating cash conmts of unrestricted cash included in the line item on the bahmcc sheets " operating assets: funds invested". C. Construction Prograsn Interesi costs of $396,0m) und $4%/X10 were capitalized as pan of the cost of capital additions and power plants under constmetion during 1991 and 1990, respectively. %e capitahted interest costs w ere offset by $357,000 and $506 Ou) of interest camed on related unexpended bond pmceeds for 1991 and 1990, respectively. In November 1991, the 11oard of Commissioners determined that ther were no remaining costs of acquisition and constmction as defined in the resolution. Acrefore, the teard passed resolution R 6-91 terminating the Constmetion Fund of the agency. he $19 million remaining in the fund was transferred to the Bond Fund Retimment Account to call at par certain debt of the agency as defined in the resolution. With the closcout of the Construction Fund, the construction program of the agency officially ended. In accordance with tenns of the resolution, all remaining capital additions are being paid from the Resen e and Contingency Fund.
. D. Investments
%e resolution authoriics the agency to invest in 1) direct obligations of, or obligations of w hich the principal and interest are unconditionally guaranteed by, the United States (U.S.),2) obligations of any agency of the U.S. or corporation w holly owned by the U.S.,3) direct and general obligations of the State of North Carolina or say political subdivision thereof w hose securities are rated "A" ar better,4) repurchase agreements with the Bond Fund Trustee, Constmetion Fund Tmstee, or any goveminent bond dealer reponing to the Federrd Resene Bank of New York w hich mature within nine months from the date they were entered into and are collateralized by previously described obligations, and 5) bank time deposits evidenced by eenificates of deposit and bankers' acceptances.
Bank time deposits may only be in banks with capital stock. surplus, and undivided pronts of 22
520,000,(XX) or $50,(X KlA4 K) for North Carolina banks and out-of-state banks, respectn cly, and the agencyN ins estments deposited in such banks cannot exceed 509 and 25%, respectively, of such banks' capital stock, surplus, and undis ided pronts. We resolution permitt the agency to establish of ficial depositories with any bank or trust company quali6ed under the law s of North Carolina to receive deposits of public moneys and hasing capital stock, surplus, and undivided pronts in excess of $201Krl,((KL At Ikccmber 31,1991 and 19'X), the agency had
$15,(xx) and $25JXX), respecth cly, so deposited.
He agency's investments are categoriecd in the following table to gi',e an indication of tac lesel of risk i.ssumed by the agency at year-end. Category I includes investments that are insured or registered or for a hich the securitics are held by the agency or its agent in the agency's name. (In thousands of dollars). Category Carrying Starket
! Amount Value Report hase agiecments $197,028 5197,028 $ 197,028 U.S. gos emment securities 211,326 211,326 223,026 U.S. government agencies 384,916 384,916 412,963 Ilankers' acceptances 6,961 6.961 6.968 Municipah 4,121 4,121 4,290 5841.352 8(M,352 5844.275 Operating cash 10 Restricted cash 5 Accrued interest 12.209 Total funds invested $816.576 Consisting of:
Special funds im ested $369,993 Operating assets 446,583 r
$816,576 The repurchase agreements are the only collateralized investments. In accordance with the prm isions of the reso!ution, the collateral is segregated and held by the trustee for the agency.
At ikcember 31,1990, the agency had imestments of approximately $775,370,(KK) under Category I and $11,20220 representing cash and accrued interest. E. Het Costs To Be Recovered From Future Billings To Participants Rates for powc- billings to panicipants are designed to em er the cgency's " costs" as defined by ( 1) the resolution,(2) the Project Pow er Sales Agreements, and (3) the Supplemental Pow er Sales Agreements. The agency's rates are structured to systematically prmide for the debt requirements, operating funds. and Contin u ed 23 l
reserves as specified by the resolution and power sales agreements. Recognition of"espenses"(denned according to GAAP) w hich are not included as " costs,"is defened to such period as it is intended that such
" expenses"le covered by rates, Recognition of those " revenues," w hich urxler the resolution and die power sales agreements are collected to cover " costs" that a.r not " expenses," is deferred to such perio I as it is intended that such *n venues" cover "espenses,"
All rates must be approved by the lhiard of Commissioners. Rates are designed on an ennual basis and are reviewed quarterly, if they are detennined to be inadequate, rates may be revised. Net costs to be recos ered from future billings to participants includes the follow ing (in thousands of dollars): Year Ended inception to Decemher 31, Decemher 31. 1991 1990 1991 1990 GAAP ltems Not included in
- lilllings to
Participants:
I interest expenw not capitalizable $183,070 $192,241 51,043,684 5 910,614 Depreciation 47,8M 47,695 273,522 225,658 Training costs __._._ _ 6.6 % .. 6,696 230,934 _239,936 1,373,902 1,142,468 Ilond Resolution Requirements included in Ilillings to
Participants:
Special funds deposits 17,287 50,739 329,186 311,899 Debt service 204,139 207,901 977,295 773.156 Investment income not available for operating purposes 25,062 24,697 120,791 95,729 Special funds excess valuations (18.013) (60,491) _228,475 (l_4,477)1,348,768 268,86fl _ (78,5N) .1,120,293 2.,459 (28,924) 25,134 22,675 Reclassification of decommissioning liability __ 21,451 _21,451 _2_1,45i Net costs to be recovered from future billings to panicipants (deferred revenues) 5 2,459 5 (7,473) $ 46,585 5 44,126 F. Ronds The agency has been authorized to issue Cataw ba Electric Res enue lionds (bonds) in accordance with the terms, conditions, and limitations of the resolution. The total to be issued is to be suf0cient to pay the costs of acquisition and construction of the project, as defined, and/or for other purposes ser forth in the resolution. It is currently estimated that these costs will require the issuance of up to $2,519,847,000 of bonds including tunds presently outstanding and already matured. Future refundings may affect the amount 24
of bonds to be iwued. On Nmemtvr la,14h9, the Ia al Gmenunent Comnuwion of the State of Nonh Carohna (LGC) apprm ed the iwuance of such innds up to a masimum pnncipal .unount ol 52,535J W OJ K Ni, adJ tional 1.00 apprm al must be obtained Ior the iwuance of bonds m eu ew ol dus amount. As of Ikeember 31, PrX). the apeney had outstandmg 1,2,491.242J K O of bonds with an unamortiicd discount of 5176,274JNW). On January 1,1991, th( agency made principal payments el 521J)20J0) for matunng bond , bnnging the total outstandmg bonds at ikeernivt 31. l'NI, to 52,473,2223W W) as follow s (in thousands of dollars): Series 1978
~ VI to 6.459 matunng annually from 199? to 2(xx) 5 $4,130 6 09 maturing in 2(W)3 with annnal sinking fund requuenrnts leginmne in 2f til 25.870 6.79 maturing in 2(N18 with annual sinking f und requirements begunmg in 2m! 55.935 f tS759 matunng in 2020 w nh annual sinkmg fund requirements beginning m 2(M r> 240.2'X) 376.425 Se ries 1979 6.259 106.99 matunng annually in m 1992 to 2tWW) 19,160 7.19 maturing in 2(G1 with annual sinking fund requirements beginnmg in 2(01 12.905 7.3759 maturing m 2020 uith annual sinking f und requnements beginning in 2005 1(ri.h95 141.9N)
S e r i e .s 1981 9H4 to 109 maturing annually f rom 1992 to 1995 3,970 M,59 maturing in 2017 with annual sinking f und requirements beponing in 2011 253uWi 2K.970 S e rie s 19M2 7.5 4 matunng in 2018 with annual s;nking lund requirements hegmning in 2009 25JWO Series 1983 8 25'i to 9.259 matuung annually frora 1992 to IW6 6 155 79 matunng in 201M with annual smking f und reqturements lecinning m 2(M P3 25JNo 31,155 Series 1984 8.759 to 10.29 matunng annuaDy hom 19"2 to 199M 33.535 7.54 matunng m 2019 with annual sinking fund requircruents beginning in 2017 50f o) 83,535 l'o n t u n u r al 25
Se rie s 1985 7.59 to 9.19 maturing annually f rom 1992 to 2(W R) $ 4S,720 9.3759 maturing in 2(k)5 with annual sinking fund requirements begn.ning in 20til 40J k W) 79 matunng in 2020 with annual smking iund requirements beginning in 2019 50J fo 135.720 Series 1985A ' 7,6% to 9 29 rnaturing annually irom 1992 to 2(xX) 7,925
~
9.3759 maturing in 2(#15 with annual sinkmg f und requirements beginning in 2001 21 JK)5 79 matudng in 2020 39.545 68,475 Series 193311 7.69 to 8.75% maturing annually from 1992 to 2002 1(6.615 8,759 maturing in 2(#15 vith annual sinking fund reqmrements legmning in 2003 61,935 i M.59 maturing in 2017 with annual sinking fund requirements beginning in 2(KO 338.345 6% maturing in 2020 with annual sinking fund requirements begmning in 201 S 125.615 632,510 Se ries 1986 6 259 to 7.5% maturing annualh from 1992 to 2(WM1 34,7(O 7.5% maturing in 2006 with annual sinkmg fund aquuements beginning in 2(W O 3S,915 79 maturing in 2018 with annual sinking fund requirements beginning in 2(kb 148,305 59 maturing in 2020 with annual sinking fund requirements begmning in 20!H 3S,275 2N).195 Series 19h8 7xro coupon priced to yield 7.39 to 7.69 matunng annually f rom 2(KW) to 2003 11,052 7.7% maturing in 2008 with annual sinking fund requirements beginning in 2(03 16,1(O 7.75% maturing in 2010 with annual sinking fund requirements beginning in 2005 8,310 7.6259 maturing in 2014 with annual sinking funo requirements beginning in 2010 80370 6% maturing in 2015 with ann ..d sink;ng fund requirements beginning in 2013 35JXx) 7% nuturing in 20 t h with annual sNLing fund requirements beginning in 2014 60JKO 7.59 maturing in 2017 whh annual sinking fund sequirements beginning in 2016 25jnO 7.875% maturing in 2019 with annual sinking fund requirements beginning in 2015 166,020 401,482 Se ric s 1990 Zero coupon priecd to yield 6.759 Inaturing annually from 2(WM to 2005 13.105 5.7% to 79 mat ing annually frorn 1992 to 2006 eseept for 2(XM and 2005 36,635 6.59 maturing in 2010 with annual sinking fund requirements beginning in 2(07 111.tix) 5.59 maturing in 2013 with annual sinking lund requixments beginning in 2011 100,320 79 maturity in 2019 with annual sinking tund requirements beginning in 2014 23.135 2S4,795 2,473,222 Less: Current maturities oflonds 23.150 Cunent redemptions of hmds (Note C) 19,450 Unamortired diwount 173,812
$2,256.810 2o
. yh E.
-,--- n--- ,m, Certain proceeds of the Ser es 1954,1985 A,19S511,1958, and 1991 tunds wcte used to estabbsh trmts f or ads ar.ce refunding of $1,544,K40 mi of presiously iwoed lunds At December 31,1991, 5224,555,000 of these bonds base tven redeemed.1.'nder these itetunding Trust Agreements, obbgatiens of, or guaranteed by. the United States hase Iven placed m incuwable Ref unthng Trust 1 unds mamtained by the liond I:und Trustec. The posernment obbgations in the respectne Ref undmg Trust l'unds along with the nuerest earnings on suc b obligstmns, w di be sullicient to pay all interest on the tefun led Imnds when due wid to redeem all refunded bond , at s anous dates poor to their ongmal matunties, m amounts ranging from par to a masimum redemption pace of 1039. Ihe momes on depmit in each itetundmg Trtat 1:und, includmg the intere* t earnings thereon, are pledged solely for the benefit of the holders of the refunded lunds. Since the estabh hment of cath liefundmg Trust l'und. d ie ref unded tunJ- ise no longer considered outstand:np obligations of the agency.
Interest on the bonds is payable semi-annually. 'Ihe lunds are subiett to redemption pnor to matunty at the option of the agency, on or af ter the following dates at a maumum of 1039 of the respectne pnncipal amountv. Senes 1978 January 1,19h9 Series 1974 January 1,19"O Series 1981 January 1,1991 Series 1982 and 19S3 January 1, IW3 Series 19K4 January 1,1994 Series 1985 January 1,1995 Series 19h5 A, loM514, and 19X6 January 1,19u6 Senes 1988 January 1.1"98 Series 1990 Juu;uy 1,2WI The lunds are guial obbgations of the agency , pay able solely hom and secuned solely by ( l) ptoject resenues (as defined by the resolution) af tcr payment of pniject operatmg eyrnses tas defined by the tesolution) and (2) other monies and securities pledged f or payment thereof by the tesolution. De wsolution requires the agency to deposit into qvcial f unds all proceeds of londs issued and all project revenu s us defined by the resolunon) generated as a result of the Project Pow er Sales Arree-ments and Interconnection Agreement. %c puqmse of the indnida.d f unds is specifically defined m the n solution. Maturities and redernptions of outstandmr hinds through 1996 and theicatter are as f ollow s on i.housands of dollais): 1992 5 42.th i IW3 24.810 1991 26.640 1995 28,655 IW6 30,545 hereafter 2. A19.972 52.473.222 Con tin u e d
-2 7
G. CommI 2ents The agency has a contractual agreement w ith lilectricitier. w hereby filectricities provides, at cost, Feneral management sernes to the agency. 'Ihis agreement continues through December 31,1995, and is automatically renewed for mecessive three-year periods unless terminated by one year's notice by either party prior to the end of the contract tenn. For the years ended December 31,1991 and 1990, the agency paid IIIectricities $ 1,962JXX) and
$2,3MJXX), respectively, of w hich $ 15JXXI and 531 JXX), respectively, have been capitalind as comtrue-tion work in pmgress.
H. Contingencies ! I
'lhe Piice Anderson Act limits the public liability for a nuclear incident at a nuclear generating unit to
$7,445MX)JXX), w hich amount is to be covered by private insurance and agreements of indemnity with the Nuclear llegulatory Commissic1. Such private insurance and agreements of indemnity are canied by Duke on behalf of all swowners of the statiott 'the tenns of this coverage require the owners of all licenwd facilities to pmvide up to 563JX)0JXX) per yeat per unit ou ned (adjusted annually for inflation)in the event of any nuclear incident involving any licenwd facility in the nation, with an annual maximum !
assenment of $10fXX)JXX) per unit owned. If any such payments are required, the agency would be liable ; for 37.5% of those payments applicable to the station.
-l Propeny damage imurance coverage presently available for the station has a masimum benefit limited to 52,515JXX)JXX). Soch available coverage has tven obtained.
On Man;h 22,1990, Duke, purporting to act on behalf of all co-owners of the Catawba Nuclear Station, filed suit in U.S. District Court in Charleston, S.C. against the Westinghouse filectric Corporation. The suit alleges that when Westinghouse sold the Catawba and McGuire steam generators to Duke,it represented that the generatos would last for the 40-year life of the stations. It also alleges that the steam generators are defective and will have to be replaced w ell short of their design life. Tne suit seek . the costs of repair or replacemen; of the steam generators as well as the cost of replacement power during the 'i repair outages. In November 1990 the agency became a plaintiff in the suit. The agency is not a defen-dant in this matter an.1 agency raanagement believes that other than legal and con uttant's costs to be incurred in pursuing the litigation, no material loss will rest:lt. 1 24 i N -
9 6 - , No rt h - Ca rolin a Alu n icip al Po we r A g e n c y N u rn b e r i Sch edule s of Re ve n ues a nd Expe n s e n Pe r Hand Res ulu tion a n d O t h e r A g r e r rn e n t s f$000s) Year Ended Year Ended Decernher 31, ikamber 31, 1991 1990 'E Project Supplernental Tr4 l'ivjwt Supplemental TMal Revenues: ' Sales of electricity to participants 5 57,227 $119,127 5176,3,*I $ 65,915 5100,M6 $166.561 I Sales of electricity to utilities 262,456 262,456 266.086 266,086 Rate Stabilitation fund withdrawal 3.425 - 3,425 Rewrve and contingency , fund valus'. ion 18,013 18,013 -14,477 14,477 Imestment resenue assilable for operatiom 32,399 1,945 34.344 3AM) 3,970 39,779 t 373,520 ~ j21,072 ~49'4392 ~3H2,287 ~i shl6 "-4863K13 ; 4 . I' Expenses: Operation and snaintenance 77,028 77.028 69,229 6R,229 l I l Nuclear fuel 2N,805 28,E05 25,9RM 25.9h8 Interconnection hervies: Purchased power 5,702 115,767 121.469 437 106,466 106.903 , Transmhsion and datnbution i1 h6I 11,861 11,374 11,374 Other 232 232 231 231 i
~ 5,iU2 'i27360 ~iU,~567 457 'II8,0'N ^11608 Administrative utui general-Duke 19,838 19,838 15,546 15,546 Administrative and general agency 1,651 1.782 3,433 1,317 1,701 3,01M Miscellaneous agency expense 134 134 137 137 G,oss receipts and excise taxes 4,233 3,768 SJX)! 4,44M 3.175 7,623 ,
Property las 8,W 8,W 7.5S 7,522 l- !- Debt senice 204,067 72 204,139 207,835 66 207,901 Special funds deposits: Decommissioning fund 2.520 2,520 2,467 2,467 Rate stabilization fund 27,754 27,754 Rewrve and contingency futui 20,712 _ 20,712 20,724 _ ?Og24 , 23.232 23,232 50,%45 50,945 l. 373,520 ,133,61_ 507,136 . 3H2.287 12? 150 50$,437
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Deficiency of Revenues Over Espenses 5 5(12,544) 5 (12,544) 5 5(18,534) 5(18,534) : 29 i l l i
~_ .. _
N o r .' h C a r o l i st a Al u n i c ip a l l'o w e r A g e rs e y N u nt h e r i Schedules of C h a n g e s in Assets of l' u r: d s in ve s t e d ($Unns> l'unds Imnted I?m dand l'ow er January 1. Note Itilling Insntinent 1990 IWut! Rtt~cipts inwrne Disbursernents Transft n Construction funu 5 16.975 5 1,828 5 5 1.e(Lt % (1.251) 5 13ond fund: Interest account 95.077 (9.62hi 3,415 ( I hh.32. ) 183,130 Rc*erve asuiunt 214.696 (1,969) 20.34I (20,472) l'rinopal account 5.891 809 (5,f M); 20,623 Retirement account 315.f 64 (l1,597) ; 4,565 (192.015) 153,2h1 Resen e and contingerry fund 21.786 (197) 3,336 (6,2 E6) 3.002 Decommissioning iund 17,4I8 1,770 (21.659) 2,47i Special reee fund 1 ,(14 5 lt:2 Res enue fund: Revenue account 38.636 67.231 .170 155.347 (258,303) Rate stahihration account 241.82S 22,023 27,757 280,4M 67.231 24.193 155,347 (230.546) Operating fund: Wr Ling capital account 29.283 5,744 (132.934) 127.814 l'uci account 49.28I (l.1548) 7X.5M 5.744 (l 2.934) 126,766 Supplemental lund 34.910 102.!57 3.h68 (5,860) i8~,974) 5766.826 5(9,966) $ ltiv,38 % LM.982 5(2titA58) 5 I s 30 h . _ _ _ _ _ _ _ . . _
,m --
.,_e._ .s__,._.rm .
l'unds l'tuids Ins ntal l'ow e r insisted (Wendu r 31, Ililling insntment Ditemtwr 31, 1990 llitripts income Disburwments Transfers 1991 5 18,956 5 5 1,073 53 1578) 5(19,451) 5 85,(69 2.9 6 ( 174,3WO 177,715 91,494 20.os5 C t.191) 212,4tM) 212.596 21,633 6%7 (21,020) 22.448 23,74h x9 19.451 19.540 319,898 23,367 (195 A lb) 149,423 347,272 21,(>41 3,to3 ( 3,( W4 ) 42 21,us2 1,147 73 (101) 1,119 5,081 73,658 781 122,32l i I 72,019) 29,822 291,M18 23.058 0.424) 313.242 296,6X9 73,655 25.839 122.321 (175.443) 343,( N 29fA17 3,253 (123 340) .5,911 37,731 48,233 (921) 47,312 7M,140 5,253 (l23340; 124,990 85,043 50,101 101,076 1,872 (5.,113) ( 129,4(i); 18,476 5786,5~2 5!74,734 SW,4 ho 5 t 205,210) 5 5816,576 31
/
N C All'A / S t a t i s t ic a l liig h lig h t s 1991 IVX) 1989 1988 1987 Kilowatt-hour Sales (thmnands) 3,722.199 3,585,461 3,572,021 3,473,529 3,358.447 Peak llilling Demand (Lilow atts) 742,108 721.247 689,3N 723,078 (66,802 Operating Revenues $438,810.(K K) 5432,(47,(x x) 5429,(NM,s X) 5425,772,(K K) 54 30,546,(K K (lkliciency)lisecw of Resenues os cr liyrn',es 5(12,$44,(KK)) 5(18,534,(K Kh $ 19,167,(K K) Si 6,034,(K K)) $8,197,(u) Sales to Duke (Res enues) 5262,456HK) 52(6,08tdKK) 5263,034,(n) 5269,443,(x x) 5280,810,(x x) Average Monthly Power Purchaws by Cities kWh (thousands) 310,175 208.7XS 297,(68 289,0 1 279,M 71 Average Monthly llilhngs to Cities $ 14,696,(K K) 513.880,(Kx) 513,839.(K K) 513,027,(K K) 512,478,(x W) 32
(.'* - i. 4 . I l r A- [ h. r.... 1 r-
- North Carolina Municipal Power Agency Number i 1427 Meadowwood Boulevani Ra'eigh, North Camlina 276N P.O. Box 29513 -
Raleigh, North Carolina 27626-0513
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(919) 832J)924 FAX (919) 839-F331 F i'
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