ML20126D317
| ML20126D317 | |
| Person / Time | |
|---|---|
| Site: | Waterford  |
| Issue date: | 02/15/1980 |
| From: | ARKANSAS POWER & LIGHT CO. |
| To: | |
| Shared Package | |
| ML20126D315 | List: |
| References | |
| NUDOCS 8004250369 | |
| Download: ML20126D317 (24) | |
Text
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g,,1GHT CO Y 1979 0 aseon'l'*
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Facts '
. (Year-End Figurest Plant in v est me nt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 82,069,10%,000 Revenue.....'..................................... 8557,474,000 i
N e t income . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 865,129,000 t
l Peak load ( kilow atts ). . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,091,000 l
Generating capability (knowatts ). . . . . . . . . . . . . . . . . . . . . . . . . . 4,612,000 '.
Cust omers. . . . . . . . . . . . . . . . . . . . . . . . . . .C . . . . . . . . . ~ . . . . 500,710 i Average annual kilowatt hours per residential customer. . . . . . . . . 13,758 .
- Average annual revenue per residential kilowatt hour. . . . . . . . . . . ~. 3.01c i
l Population Isarea served. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,509,000 t ong-term debt. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . S827,4 30,000 Tases charged to operating expenses. . . . . . . . . . . . . . . . . . . . . 338,727,000 Employ ees. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,3 29
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$ ever,70*4 of thisincome was made up L requested by LP&L CWIP is generath of A!!owance for Funds Used During , regarded in the industry as providmy revenues necessary for a company to p{f, Construction ( AITJDC). This non-cash
/(:. item amounted to S45.9 mi!Iion in 1979,' Lpay financing costs on capital supplied C .
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an increase of $14.8 mI!! ion over 1978. ~ by investors for its customers' future elec h.~ 6 ,a ,F tric power requirements. We believe b .a ..
Operating revenues for 1979 totalled . revenue for CWIP eventually must be b ' 5557.5 million, 22% greater than the included in establishing fair and reason-5
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1978 ~ operating' revenues of 5456.4
' million. Ilowever, operating expenses able, rates for electnc utilities u I"uisiana, or we will reach a pomt m
- 7~ rose more sharply, amounting to 5483.6 million,25% more than 1978's operat. which facilities needed for the future
', _ growth and development of this state ing expenses of 5387.1 million. Chief simply will not be able to be constructed
- The . electr~ ic utility industry cele- among these spiralling operating brated,its,100th anniversary in 1979, expenses was purchased power which .On January 7,1980, LP&L amended and durmg the year Louisiana Power cost LP&L 5140.1 million in 1979, its application to the New Orleans Cm
- & Light Company began its 53rd year slightly more than double the 569.7 Council for a rate increase to its cui of operation, million spent for purchased power the tomers in Ward 15 (Algiers). 'I h n preceding year. Fuel for generation amended application requested the
- s in same rates be applied to its Algiers cue
?. Twe iraportantfdevelopments oc-curred also rosedunng from the the5168.2 yeir-the connect-million 1978 to $190.~2 million in 1979, a 13% tomers that had been granted by the F, . Ing of die Company's 500,000th electric LPSC, and had the effect of reducing customer in December, and a measure increase.
4 of rate relief which, based on today's Fbr only the fourth time in its his. the Company's originally requested inflationary pressures, is far from tory, LP&L registered a decrease in the 53.2 million to 51.3 million. On Feb-
,e ruary 21, 1980, the City Counci!
J adequate. annual kilowatt-hour use of electricity
" by its average residential customer. granted ,LP&L the 51.3 million re-In ek> sing the Seventies and looking quested m the amended application to the Eighties LP&L successfully The average residential customer used The Company's customer count completed .a decade fraught with 13,758 kilowatt hours in 1979, con-E siderably above the national average of reached the 500,000-mark in mid-h serious problems and challenges for the December, and ended 1979 at
- Company, chief of which was its finan- 8,826 kilowatt hours, but down 305 cial situation. Although many of these kilowatt hours from the average resin 500,710. This was an increase of 4 dential consumption for 1978. This 17,326, or 3.6% more than the end-of-problems remain with us, including the 1978 total of 483,384 customers. The critical financial distress, we are cau. decrease is attributed largely to suc-tiously ' optimistic about the Eighties. cessful efforts by the Company in its increase was due in part to the addi-p m tion of c nservation of energy, tion in July of over 2,400 customers ir Following the Three Mile Island a mild summer, the operation of munic- the Town of Rayville. Citizens of incident March 28, the 1979 Iouisiana spal systems whose customer use is . Rayville had voted in January 1979, by I legislative session included 12 severely below the LP&L uverage, and the conn, . a' si.x to one ratio, for LP&L to serve P ~ anti-nuclear hi!!s, which ranged from version of r,umerous master-metered electnc power to the community. Also.
I calling for an ^ outright nuclear mora- ace unts to ,mdividual meters.' the Town of Jonesboro held an election b torium in Loulslana to shutting down
. The Concny was granted a $59.6 : . inmne December to one 1979, voting by aserving ratio of 7- -
nuclear "
! 'under %geneFating ndtruction3cting %tations respon.already million increase in its electric service m favor of &&L V' P d ! ' iibly T thel legislature , defeated or " second rates December 18 ~ 1979--only the. .,the electric needs of its citizens.l An
~ increase in its history. The ~ application has been filed with the 6 ' deferred action on all th'ese bills, it did Iouisiana Public Service Commission,x , Securities,and Exchange Commission'.
hV;M ' -k pass resolutions caffirig for study com- ^
in approving _ thei increase...did not Jand &&L should begin operating the Emittees to look intoof;ouclear' the' safe and or. .^ allow the Company the additional rev MO.nesboro ~elptn,c properties before F "
fdedy deve16pment facilities ~id the state,w -
power
- enue for Construction Work in Progress j mid-1980.-
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f (CWIP), which the Company had re . ~ A new computer-operated telephone b I ' The CoE pany'slargest construction . quested in its t ate fil,g December 18,1 system was installed in the Company's U project,its Waterford 3 nuclear unit at Taft 12.JcStirided ^approximately on , rate 978..The Company had asked for m ' General Office and its three division 1
7, Increase of $114.7 mithon,but the offices,during the year-one which 1, schedulein 1979?The 1.165,000-kilo - proved only 52% of the Lpromises to provide not only greater watt unit; Whicli sill add about 25% . LPSC ap&&L had requested Whlic,Ocommunications efficiency through-amount
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d the MSC yout &&L. but also to be less expen-D' . to,, L,P&L's' in cady W82. ,my,nqq -
curre'nt' 3'eneratingfaccapa .' f" *, bility, is Wheduled : forTcompletion , th ~
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act,mg mg on upthe to Company,s rate request.. . system. .
3 k,- + Net locome of the Company in 1979
- we were disappointed that'the LPSCP Go$ ' h' a
Lwas $65.1 million, sin tr crease of $11.4 "c did'not"see fit to grant' the'eiitire red p '
i y nullion per net income in 1978. Ilow" quest, .which , was badly _ needed . to:- '
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tinued to be improved by the CompanyNy$ I C / 9, . ;
in 1979. At the end of the year, a totalM.U;2a, '
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of 1,928 LP&L employees (83%) wereTM ~
g _ I participating in the new Middle South * .n cs Utilities System Savings Plan begun?.f! ~ ~
a October 1,1978.This plan provides for.R% + pn ..y w the Company to contribute 50 cents for!. R.
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, each dollar an employee puts into theMO 4 Q g j
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4 pany's share of funds contributed to %. I w%#; -
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this plan in 1979 was 5765,000. 'inv~ W ,
November, LP&L provided an 8%C;NM y e earnings increase for its hourly em-174: , -
ployees, and awarded salary increases (4t for those employees covered by the (;9 ' N '
, Salary Administration Program. flap $ g, 1979, the Cornpany increased pension C ..,
J', t p*r benefits for LP&L retirees who retired.a mM. p prior to January 1,1978. W W~ : "
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penses among the five operatingL com - f.$ ' , y.
panies in the Middle South System.1 > s C This not only indicates the high caliber p.WM . b of LP&L t^mployees, but also their con .., . .~ . p G
sistently high performance record.'ItsOb -
cmployees are obviously the Com Ny , r1 ,
pany's greatest asset, and are the! ";> .
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reason for optimism in the years ' ' e X ahead, despite the problems that . ' f ,/ F
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of a difficult year ahead as we enter the%:yd *, ,
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all of us to conserve cash and to P"88?tf for rate relief whenever and whereveu%:-
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The Company's Little Gypsy steam- ~ i. -
electric generating Q~. :."y ,,
station in St.
4.~;3 ,; , .,
Charles parish. , _
i Net Income The Company's net income for 1979 was 565.1 )
million, an increase of $11.4 million over 1978 net income of 553.7 million. Although this was a 21% i increase, 70% of net income was represented by l Allowance for Funds Used During Construction l Retail Energy Sales (AFUDC), a non-cash item. In 1978, AFUDC
"" amounted to 58% of LP&L's net income,
'EnYn'*[
( oIer1Y7s ($Ei e s$ overtY7s nuienuai. . .. .. s.ess 2 siso.4 23 Operating Revenues From Retail Customers Commerciai.. . .. 2,721 4 e6.0 26 Operating revenues from retail customers in-i.entitai. . . . . . . . . . . it,ssa is 212.s so 44s 11.7 se onernmenini. .. is creased 5126 million in 1979-to 5490.9 million in s4so.9 as kom N.9 du b N. % was a M fi$ tan'cYs$ers.... 2o,sso it increase. These sharply , increased operating rev-enues were primarily attributable to increased Operating Espenses energy sales to industrial customers and higher
" levels of fuel adjustment in customer service bills (m'i![ds) (m't![ds) $Ns*7 due to increased cost of fuel for generation and reel Parchased for ceeeration. . . . . . s190.2 st 6s.2 la Power Purchased. . . .... . ... 140.1 s9.7 1o1 power purchased.
ooterrea rsei cent . . . .. . . . (1s.11 - -
7ues........ .. .. ..... .. as.7 34.o 14 Operating Expenses Depreciatten. . . . . . . . . . . . . . . . . .. 40.9 ss.4 6 Payroll Charged le Dperatieg Empenses . . 27.s 24.4 la Operating expenses in 1979 totalled 5483.6 mil-other. . . .. ... . . . si .s sr.4 17 lion, an increase of 25% over the 1978 operating s4ss.s sss7.1 as 7eini. ..... ... ........ . expenses of 5387.1 million. Contributing primarily to this increase were sharply increased purchases of fuel for generation as well as additional power pur-chased from outside sources.
4
_ . . ~ _ . . . . . . . . _ _____....I
Operating Taxes Company spent for purchased power in 1978. This I Local, state, and federal taxes in 1979 amounted sharp increase in purchased power resulted pri-manly from mereased demand for electric service l to 538.7 million. This was an increase of 54.7 and from additional purchased power required to re-million over taxes paid in 1978, a 14% increase, place oil-fired generation.
Construction Costs
( The Company's construction costs in 1979 Second Rate Increase l .g. Gmpany was granted a 559,607,0(X) increase totalled 5280.3 million, an increase of 57.4 million in its electric service rates December 18,1979, by over the 5272.9 million spent on construction in the Louisiana Public Service Commission. Th'e 1978. During 1979, 5228.5 million was spent in the LPSC, which granted the Company only 52% of the continued construction of Waterford 3, LP&L's '
5114,721,000 LP&L had requested in its December nuclear generating facility at Taft, La. Waterford 3 18, 1978 filing, did not allow the Company the ~
was 74% complete at the end of 1979.
additional revenue for Construction Work in LP&L Now Has More Than Progress (CWIP) which it had requested.
500,000 Customers The increase, which affects all LP&L customers LP&L connected its 500,000th customer in mid. except those in Ward 15 of New Orleans, amounts December, completing 1979 with 500,710 cus- to approximately 54 monthly, or about 13c a day, tomers, an increase of 17,326 over the customer for LP&L's average residential electric customer.
total of 483,384 at the end of 1978. This is a 3.6% in approving the increase, the LPSC directed that increase. This included more than 2,400 new cus- an additional 3.3 mills be added to each kilowatt tomers added when LP&L began serving the Town hour used by residential, commercial, industrial, of Rayville July 27. and government and municipal customers. The rate increase became effective immediately following L,nergy Sales To Retail Customers the LPSC ruling, and is only the second retail rate Electric energy sales to retail customers in 1979 increase granted in the Company's 52-year history.
amounted to 20.6 billion kilowatt hours. This was During that same period, LP&L has put into effect an 11% increase over the 18.6 billion kilowatt hours 29 rate reductions, 9 of which have been major sold by LP&L in 1978. decreases in its retail electric rates. The Company's retail electric service bills, even with this 1979 Average Residential Use increase, are still among the lowest m Louisiana as At the end of 1979, the average annual use of well as the remainder of the nation.
electric power by residential customers was 13,758 Concerning its customers in Ward 15 ( Algiers) of kilowatt hours, a decrease of 305 kilowatt hours the City of New Orleans, the Company had filed from the average of 14,063 kilowatt hours m 1978. March 6,1979, for a similar increase in retail rates This decrease was attributed to the successful promotion of energy conservation by the Company and others along with the rising cost of energy and a mild summer. In addition, the dilution due to assum- .$ .
ing operation of municipal systems whose customer use is below the LP&L average as well as the con-version of numerous master-metered accounts to individual meters reduced average consumption considerably. _
" = =
LP&L Peak Load A new LP&L system peak load of 4.091,000 kilo- ,,
watts was established at 4 p.m., July 5, topping LP&L's 1978 peak load of 3,852,000 kilowatts by 6%.
Fuel for Generation .,3 ,
- Fuel purchased for generation of electric power by LP&L in 1979 amounted to $190.2 million, an g 'Y N y 2, increase of $22.0 million, or 13%, over the previous year. Fuel for generation amounted to 39% of the h.. ..g
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Company's 1979 operating expenses. Y l E4.
Purchased Power Checking system components for the computer being installed ln 1979, purchased power cost LP&L 5140.1 at waterford 3 are, from left: .loe langois. Monroe Fra:ier million-101% more than the 569.7 million the and charlic Baldwin.
s 1
l to the one it had filed in December 1978 with the l
l LPSC for customers under its jurisdiction. LP&L i
originally had requested 53,191,000 in additional i revenue from its Ward 15 customers. As a result of .
the LPSC ruling, the Company filed January 7, ~ b-i l 1980, an amended application concerning its New E3 Orleans customers, decreasing its request to .
I@3 '
51,298,000 (based on the test year of 1978), or 41% h , 5 l3 of the amount originally requested. This was done to bring the rate increase for Algiers customers - t 3s. *s i
} '
E-into conformity with the rate increase already \ esti % e, granted for other LP&L customers in the state.
This amended request was granted February 21 l by the City Council of New Orleans and became effective on all bills rendered on and after February 25,1980.
--d
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First Rate Increase On November 23, 1977, the Louisiana Public Service Commission granted the Company a rate m-crease of 55 million out of the 554 million which N_% 4 I, *
- LP&L had requested in the first rate increase it had ever filed. In addition, the LPSC ordered the entire increase to be allocated only to the Com-
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g pany's industrial customers. s LP&L appealed the LPSC decision to the 19th % N' Judicial District Court. In July 1978, the district
, court ruled that the Company should be granted an increase of 513.8 million, but that the increase (FERC), formerly the Federal Power Commission, should be allocated to all classes of customers. In with which LP&L had filed an application for an addition, the district court ordered the Company increase in rates to rural electric cooperatives and to render an accounting of the amount it had col- four municipalities which it serves firm electric lected from industrial customers in excess of the power. LP&L filed the application July 29, 1977, amount which would have been collected if the 55 requesting an increase of 57,489,000 from the co-niillion increase had been allocated to all classes operatives, and 51,055,000 from the four municipal-of customers. LP&L appealed this ruling to the loui- ities. Among other things, the application from siana Supreme Court, which upheld the district LP&L asked for the inclusion of Construction Work court ruling- in Progress (CWIP) in the rate base on which it Based upon the accounting rendered, the district would be allowed to earn a cash return instead of court ordered the Company to refund approximate- setting up the non-cash item. Allowance for Funds ly 52.9 million to LP&L's industrial customers. The Used During Construction (AFUDC). Numerous i Company appealed this decision to the Louisiana delays and adverse decisions, still under appeal, Supreme Court and requested that if the refund have prevented LP&L from receiving any appreci-order to industrial customers was upheld, the Com- able increases regardless of the final FERC decision i pany be allowed to recover the amount of the because the cooperatives and two of the four mu- ,
i refund from other classes of its customers, nicipalities will go off the LP&L system in 1980. l The Supreme Court upheld the district court Financing I again, and also denied LP&L's request that it be l allowed to recover this refund from other classes in 1979, LP&L sold first mortgage bonds, pre- ,
of customers. The Company's request for a rehear. ferred stock, and common stock, resultmg m pro-ing was denied by the Supreme Court, and shortly CCeds to the Company of approximately 5310 million.
afterward, the Company credited its industrial ;
customers with approximately $2.9 million, the In May, LP&L sold 545 million of 10-year,10%%
amount it had collected during the eight months first mortgage bonds at a net cost to the Company of litigation. of 11.15%. In November, LP&L sold 555 million of 30-year,13h% first mortgage bonds at a net cost Wholesale Rate Case of 13.68%.
In 1979, the Company fared poorly in its treat- Three issues of preferred stock were sold by the ment by the Federal Energy Regulatory Commission Company in 1979: 535 million of 11.48%,5100 par 6
Is/t- A tour proup in the control room at
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1 value,in March at a net cost of 11.46S6 to the Com- amounted to approximately 515.054,(XX) as of De pany: 560 million of 10.72%, 525 par value,in July cember 31,1979, and increased net income for 1979 at a net cost of 11.27% to the Company; and $40 by $7,765,(XX). This new procedure more accurately million of 13.12%, 525 par value, in October at a accounts for fuel costs, and allows the Company net cost of 14.61%. to recover only the actual costs of fuel used for LP&L's parent, Middle South Utilities, Inc., pur- generation.
chased 7,576,000 shares of the Company's common W,aterford 3 Construction stock in April for 550 million, and in October, Middle South purchased 3,788,(XX) shares for 525 At the end of 1979, Waterford 3, LP&L's nuclear million. generating unit under construction at Taft, La., was Proceeds from these sales of stocks and bonds 74% complete. During the year, an additional four- !
were used for the payment in part of outstanding short. month delay was announced for the tentative I term borrowings, for financing the Company's licensing of the nuclear facility. Slippages in the l construction program, and for other corporate pur. overall project schedule were caused by a shortage l poses. Also, LP&L obtained additional funds for its of skilled craftsmen as well as regulatory staffing construction program through the sale by certain problems of the Nuclear Regulatory Commission Louisiana parishes (counties) of tax-exempt, pollu. following the Three Mile Island incident in Penn-tion control and industrial development revenue sylvania March 28,1979. As a result of this delay, bonds which totalled 59.3 million. the estimated completion date for the nuclear unit is now February 1982, and the cost is expected to Deferred Fuel Accounting be about 51.2 billion. Fuel loading is scheduled for in January 1979, the Company received authori- September 1981.
zation from the LPSC allowing and requiring the Company to credit or charge customers, through the Research and Development fuel adjustment clause in future billings, for net Since its beginning, LP& L has invested in research over or under collections of fuel costs in excess of to find ways to improve the quality and continuity those included in base rates. Concurrently with this of its service as well as keeping the cost of elec-change in billing for fuel costs, the Company began tric energy as low as possible. In 1979, the Company deferring on its books fuel costs to be collected spent 52,851,000 on research, 52,088,000 of which through the fuel adjustment clause until such went to the Electric Power Research Institute, prin-amounts are billed to customers. This deferral cipal research arm of the electric uti'ity industry.
7
- . ~ - . . - . .
local research cost LP& L 5549,000 in 1979, with this LECOPA being directed to engineering projects, consumer
, In 1979, a political action committee-Louisiana services, electnc power production, and miscella- Employees Committee on Political Action neous research activities. In addition, LP&L direct- (LECOPA)-was organized by LP&L employees, ed $214,000 toward development of a breeder with 275 salaried employees becoming involved.
reactor, a project under direction of the Edison in just five months, LECOPA generated enough Electne Institute. funds to make meaningful contributions to legisla-Energy Conservation tive candidates LECOPA members wanted elected.
A major LP&L objective in 1979 was the con- Municipal Developments tinuance of its efforts to assist customers in mak- 1979 was a busy year for LP&L in its efforts to ing the best and wisest use of electric energy. This help I.ouisiana communities which have operated is a goal the Company has had smee it started in their own electric municipal operations in past bus, mess m, 1927. Major programs included its own years' Energy Efficient Electric Home and Energy Effi-cient Commercial Building programs as well as the . In January, citizens of Rayville voted by a ratio of six to one to accept LP&L's proposal to operate the industry-sponsored National Energy Watch. A total town's electne utility system. Approval was ob-of 557 Energy Efficient Electric Homes were added ,
tamed from the Secun, ties and Exchange Com-in 1979 along with 68 Energy Efficient Commercial
- ISSi n, and the Company started operating Ray-Buildings. These are included in LP&L's 1979 sales ville,s system July 27,1979. In December,Jonesboro of 8,083 total electric living units and 679 total electric commercial customers. Also important in v ters passed by nine to one a proposal for LP&L to operate that community's electric utility system.
promoting electric efficiency and energy conserva-tion are the Company's Zip Up Your Home pro- An application was filed January 9,1980 with the gram and energy-saving heat pumps.
SEC for the Company to operate the Jonesboro system: LP&L is currently awaiting SEC approval LP&Us Greatest Asset: Its Employees to proceed.
While employees of any company are obviously Also during 1979, LP&L made similar proposals important to its successful operations, LP&L is to the Cities of Natchitoches and Ruston, and has especially fortunate to have the high caliber of men agreed to make a similar proposal to Morgan City, and women it has. Its average employee has 12.5 None of these proposals has yet been voted on by years of service with the Company. Among a family the electorates of these communities.
of 2,329 employees at the end of 1979, 308 em- Outlook for 1980 playees were promoted dun,ng the year.
In an intensive manpower utilization improve- . Although LP&L can anticipate continuing infla-ment program, a nationally recognized firm looked tion algng with unemployment peaking at about carefully into ways the Company might increase the 8% nationally, Louisiana is less likely to feel the efficiency of its operations-a study which con, depth of the expected recession of 1980. In par-tinued into 1979 from the previous year. It dis- ticular, petroleum and petro-chemical mdustries should remam strong. Not much of 1.ouisiana's agri-covered few opportunities for increased efficiencies which the Company had not already put into its cultural production will be affected by President routine operations. LP&L will continue to monitor Carter's decision to reduce gram shipments to the its achievements in this area, and it has appointed S viet Umon. However, a dismal 1980 appears to be a full-time administrator to conduct a continuing in store for residential construction. High interest rates may result in a 30% drop in residential study aimed at further improvea.ent in the use of our ,
construcuon.
Company's human resources.
In November, LP&L announced an 8%% earnings In 1980, an important political year, the nation increase for its hourly employees, and soon after, faces a tough choice between more mflation and a ward awarded salary increases for its employees in higher degree of unemployment. lt appears that the its Salary Adminstration program. In addition, admmistration is presently with,ng to nsk further retired employees who retired prior to January 1, mflation rather than accept higher unemployment.
1978, have been awarded an increase in their pen-sion benefits to assist them in coping with inflation and the rising cost of living. ,
l 1
(
8
Customers Operating Revenues (Thousands) From Retail Customers (Millions of Dollars) 525 $S00 420 400 315 - -
300 210 - - -
200 105 - - 100 - - - -
1970 71 72 73 74 75 76 77 78 79 1970 71 72 73 74 75 76 77 78 79 Energy Sales Average KWH Use To Retail Customers (Billions of Kilowett Hours) Per Residential Customer (Thousands of Kilowatt Hours)
E 12 EEE 1, 1115 9 _.saaIIIII EIIIIII O IIIIIIIIII O1.mERIIIIIII 4 , III IIII. - -
0- IIIIIIIIII-1970 71 72 73 74 75 76 77 78 79 0
1970 71 72 73 74 75 76 77 78 79 Construction Expenditures Utility Plant (Millions of Dollars) (Millions of Collars)
$300 $2200 240 -
60
. dl 1760'::wH 440 0 0 1970 71 72 73 74 75 76 77 78 79 1970 71 72 73 74 75 76 77 78 79 l l
l i
- - -- -. .- ... ._w..., _ . - - . _ - - - . - . - - . - ._.
l l l
l l
i 1970 Edison Electric Institute com ,
panies with 1.279 to reach 11.22( l l Jimmy Carter emerges as a political KWH for its average residentia '
figure in Georgia. .LP&L a n- customer. . Tex R. Kilpatrick o' nounces its decision to build Water- West Monroe and H. Duke Shack ford 3. its first nuclear generating elford of Bonita, and J. M. Wyatt plant then estimated to cost 5200 of New Orleans are elected' ic million and be completed in 1977. . LP&L's Board of Directors.
E. A. Rodrigue becomes president LP&L begins to see the first of of LP&L as Floyd Lewis is elevated many large increases in fuel cost >
to chairman of the board and re- and the cost of money for first mort-y mains chief executive officer: Lewis gage bonds hits a high mark of 6 also is named president of Middle 7b%. . Work begins on LP&Li at the South Utilities, Inc., and Middle South Services, Inc., .Lionel J.
Sterlington 7. .The Electric Power Research Institute (EPRI) is or-Cucullu and Harry M. England.both ganized and LP&L becomes a char-Seventies ef N ~ orieens. are eiected te LP&L's Board of Directors. .J. M.
ter membe,.
Wyatt is named senior vice presi- 1973 dent.
War breaks out in the Middle East 1971 . Watergate grabs the headlines.
Vice President Agnew resigns and Eighteen year-olds get the vote. Gerald Ford t>ecomes vice president Anti Vietnam marches claim na- .LP&L's Customer Service Cen-tional attention and 12.000 are ter is operational. . Fuel for genera-k3
arrested in Washington, D.C. . tion becomes a major expense item
'1 d i M
E. A. Rodrigue becomes president .The Arab embargo prompts a
, and chief executive officer...Floyd nation wide appeal for energy con-9 W. Lewis remains chairman of the l ly servation by President Nixon . .
l '
- g g board of LP&L. .LP&L is growing LP&L inaugurates its Consumer 4 at an annual rate of 10 to 12% in Energy Team. .Ninemile Point 5 is r
il F energy sales. .The Con.,3any com- completed.
. .. a* pletes its fourth generating unit at
- Ninemite Point and starts work on
$, 1974 Waterford I and 2. . William Mc-fl," h :(' r Collam. Jr., of New Orleans is elected to LP&L's Board of Direc.
President Nixon resigns and is sue-ceeded by Vice President Ford.
Y tors. replacing Lionel J. Cucullu. . Nelson Rockefeller becomes the na-g 3 LP&L acquires a 600-acre site near tion's vice president. .U. S. econ-P Myrtle Grove in Plaquemines Parish omy continues to suffer double-as a site for a future generating digit inflation...LP&L reaches the e
station...The Company's Southern 51 billion mark in total plant in-g' Control Center in Gretna is com. vestment. .LP&L's Sterlington 7
- h pleted and work is started on the Customer Service Center at the is completed. . Atomic Energy Commission is reorganized and
, same location. emerges as two separate bodies: the Nuclear Regulatory Commission 1972 and the Energy Research and De-i velopment Commission. .LP&L be-g President Nixon visits Red China, l gins legai steps to become a Louisiana Fornier President Truman dies. corporation after having operated as M dern equipment makes line work easier President Nixon and Vice President
"" ^ a Florida corporation since its Agnew are reelected by a landslide beginning in 1927. .LP&L ex-
. .Floyd W. Lewis steps down as periences its first decline (345) in chairman of the board of LP&L and kilowatt hour consurnption in 22 becomes president and chief execu- years. .The Company is finath tive officer of Middle South Utili- awarded a construction permit fo'r i
,t,es. Inc., and Middle South Serv- Waterford 3 after nearly 4 years of sees. In c. . . . LP& L registers the delay, and the Company announces second largest increase in residen- plans to build two more nuclear tial kilowatt-hour sales among units at St. Rosalie plantation in Plaquemines Parish.
I 10 I .
. . . ~ - . - - - . ~ ~ . -
1975 requesting sii4.7 million in addi- ,
tional resenues. . James M. Cain of w Vietnam and Cambodia fall to the New Orleans is elected to LP&L's '
communists. .The cruise missile is Board of Directors. replacing ,
added to the U. S. defense arsenal . William McCollam, Jr. . . LP& L , ,
i Waterford I and 2 are completed.
LP&L cancels its plans to build the begins operating the electric systems 1 'y of Monroe and Homer...The halfway 5 two St. Rosalie nuclear units be' mark is passed on Waterford 3 \
cause of sesere price escalation as construction.
well as anticipated environmental and regulatory delays. .LPAL be- 1979 comes a Louisiana corporation.
Louisiana Pu blic Service Com. LPSC finally acts on the Company's mission orders monthis hearings on
~
second rate increase, awarding the utility fuel adjustments. Company only 52% of its request for l rate relief. .lwuisiana elects its W'** t ,
1976 first Republican governor, David C.
Treen,in 103 years. .LP&L reaches Jimmy Carter narrowly defeats the 52 billion mark in plant invest-Gerald Ford to become president of ment. .Other accomplishments of the United States. .U.S. con- our Company are reported on other tinues to increase its reliance on "
pages of this annual report.
foreign oil and uutches oil con-The oldplantation bellstands infront of the tinue to rise in cost. . United Waterford 3 administration building. com-States celebrates its bicentennial. pleted in 199.
LPAL files for its first rate increase m Company history. . Lake Prosi-dence and T hibodaux vote to ap-prose operating agreements with our Company . .J. S t. Wyatt be-i comes LPAL presider.t and chief esecutis e officer. .E. A. Rodrigue becomes chairman of the board.
s 1977 Inflation continues to be responsible
, ~- .
4 for higher fuel and energy costs.
A tax resoll deselops in California g f, g, over Proposition 13. .LPSC finally 3 ,,
acts on LPA L's request for rate fr ., ""* W ~f*
relief. granting the Company only 6% of a requested $54 million and h, .r M')' D ~
d.S 4P T ""
LPAL is forced to appeal the LPSC
) :.
- = gj ' , )7-~
i decision to the courts. .LP& L q - f g. , +
l obserses its M)th anniversary with a -
.S % .
commemoratise histors of the Com- 6 5, .'
' 'A pany. .E. A. Rodrigue retires as chairman of the board. . Gerald Y '
McLendon becomes senior vice %" y- c _._
w "
president . . Citizens of Homer and ;
Monroe sote to join the family of
- communities sersed by LP&L. Customer service leader Larry Steinkomp discusses a response procedure with customer service operator Bess McGuire.
1978 l The American dollar continues to l buy less and less and LP&L sees the cost 01 financing construction con-tinue to rise. .LP&L is compelled to apply for a second rate increase, n l
agn,,40: __+ _._ ,,,,
n -. . n ._s- .. ,, , m~ > ,. ' ,
%~yG4.46%MMMQWXWM c; E, . s %. wau m; ;,.d. w.1.;
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II U%dhM%%% D Q M Q N y $,$ D+ MF E @b O H m W .& - -
,; RECORD OFPR RESST90!$4979%E :
+,a m y yw.mma .m#. mm n - -
^
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n
^
, NYTA.$ hk k$5N 1,509,000 bMW5$ %O -m ~~
j.Wr.h'h
- j - Estimated population, pM. 1 #s 1 A55A00 . L 1,345,000 F
e Electric customersyear Residential.MWW WDF @uge2pf
- w"yy. i
$1di.. FjL h@N#g@hm.. M?." . 443,527 m*427,938 7395,479 hw. 3 m. .
L Commercial.CMg/y:@dCghe.M#. yn W A;ytE.....
1.
@ C.!J... 46,848 F*44A84
- 7,518 40,096
[ Industrial. .'. . WM.Q 7,162 3.173 y 3.044 7,651
- 2.770 Other. . . . . . .--.. AM, ._W._'.WI;&. se .nW}1T.01.,WT . m m. * ~
Total electric custommers.M~Wfr.E;jdMEZl. . .'.' . . . . . .
500,710 pf '.483,384 445,996
&&MW%W&.~ $ .pf %'thMg$M&$$ge@&Me.a Q f@W ~
Electne operats;ag h revenues .MigJi
, w~
0 Residential. . .';P,W*Tl!Mt . 180,364 p 46,326'.
S1 5 124',500
. Commercial. . .W.,MGM MHul:$rM.hM.:. d c, . . . . . 85,983 . 55,398 Industria!. . . . ;'. 26. . 212,853 (N n 68,328 d141,803 ' 114,874 i
Other.Total electridaaEM
. . . .$@M.7dMW:.v.. . TZSM6QCiM.%2ENCly@d(;N9Y . . .M M M h...... J... 78.276 7 -99.918 d5.T.'S 557,476 Ib E456,375 $ " $ ~ ~ 378 84.179 F M h@hTO%,951 *
, KWH Residential. sales (millions)DMM@f4%M..a. .J. .... ..N. 4, .gnyggaa;geac.gw r.MMWN -, 5,996 U 4% . .
5,862 .
. a. :
5,334
.u .
Commercial. Q; 2,721 L .J 2,624 : 2,268 Ind ust rial. . . . . . . .. ... .. .. . .. .. ..d. .ggy,~.@. . ; .g.fp$y.m
. . . . h ...e.............. . . . . . . . :. J ..% . 11,388 .; .. n. . . .'9485 . . . . . . 9,028 Other. . . . . . . . . . . . . '. W .l . C",.7. . . ; ' . . A . '. {. . . f. . . . . . . . . . . 3.147 " 4.541 4.322 Total sales. . . . . . . .., . p . . . .~. q. . . .;. . . g. g.vl.p s. . . . . . .
23,252 {Aa. 22,712 _ ;20.952 h Res,dential i . . ,..ANMMjMMugdhh,$$g$@.6 customer data mo -: m~
$$h.W-Mee
~ - - -
Average annual useKWHEW9pT. yse 13,758 , gD43 EMdle 16 3
[. Average annual revenue .
gG per@%Q KWN,Tu?b;p?$$pd%d.W.E b *4.iW's R1b,... 3.01c QW2 50s ; - 6 2.338 r u.-*
u eP am #%
[.
Commercial custoNdhakh.wue+wdAverage hhhh fNh*
f 59,363 * ~ 60,496 annual t .-
- 57,502 use Average annual revenue per KWHT,/. .v. ;;WF 'f
{... 2 2.44c 4_. ' un. . N w.waw :; w ;n 3.16c E& w .60c Peak System demand (MW),m. u gg~ yf; "y%.p xEng. 4,091 . .W . . . . . . . . b3,515 ..
e P "^ g^ : ,
.di. ,.W;.
. W@r m ., s f; .s.
,%en. 3,852
.e g,p% p' M' M y g gq y,e,gg .- "w' -
f, . pgg . .gg.3g,%.gr
.,a g m
- System Input (KWM . Generation. . . . ;MMn ,g . myg 18,429 @,.4
, , , .~
. Purchased powerJ#F y 'W w' '. P *p Nh ;w.,",p ..N*M T. S h9 21 ,2511'.X:l 2,24c 5.860 799M ' * :/8 m~
- ' ; iTotal system imph Nk.;r. 24,289 F %Q J c
v'
..ggg - ~gg , -
ws qL+141 y
~-
Fu.el cost for ge. . .w ~ .neration. :
4.#m,a.
ww~ +t*-. I.; S 190,226 Mv.s J ~w E.,a$
w .IS,117
,-l.
.~,n
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Generating c
-<.4 h
9 4,612 %g%% ..* ?gyg@h;U Q94pwaymm
$47 7
' Heat rate-BTU Per_ g hJ 10,625 p:plcN.185R.Kle,2Rt:
((. ' Gross electric plant (90%p vt.Y M/Fp ng
- , Mb%$W.c.T. "'
i si t -
. .' S2.069,106 4 5 6792,952' $1,509,745 -
u .. ..
- Capitalization ($0000 Q*dht,
<fn%h N. _
a * *%RTOT i:
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?
e -a,~84/s'
+ %:= .
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' Long-term debtiTM/... A fddh.m S 827,430 $jch $ 728,748. 566,315
.. N Preferred stock.M.I% "Hg M R. 238,872 Mit0A09 - - 110,N9 A s , . . " Common stock e I WWh'.- 487.441 @417.192 O VM31%$ ~
g a i' q qqpyg'capitaM@1 t
$ t.553.743 $e.296.749781AGS7 a
+
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yQg g de:y:4g9,x p gggprW,,p g,ygg g.np pg m g~ an. --,--
1976 1975 Nf k N N M [ ff hJ$hlk_,.( N. 2.h.k>M.wb.@,ggggNY Y NN . . _ . . .
i m :g pg : ghggyMggggggy.gg.g,-. , , , , 3G f 1,304,000 1,250,000 1,225AM M Q.1J87,(NB;;,/nIA50MENML315Mgt.200A00 ; 2.. ~ 1.1.
- i.
366,242 ' ~ C i.... e h M P % 7)38,375 Mb;J5.r.WgWA 4M,. WMg% $sMrm:.. .MW@MS,$'Je "
384,213 38,632 36,166 356',479:',9346AN[M&3tg 35#144.ed 33 p W.735% 30AS$
i "~
^M
?SA34$ M,VM '7$glp $ $' 6,838 Ml.w 9th 4,W7MM4 T h\-Sna9 Nf+'?A 6,586 5,824 2.634 2.4% - 2.425 ** A2.313 ZM 2.347 der ,306l' -
- 1.950 432,065 410,728 399,342, .. 387,973 % 375,$63MK358A33 $q. P 34. . R.
m 5,567 , q. ..
~. ? 3.3.+4,861. . w. m .:.e g gy y p:9g gyggympyg 4 ,. un..ngw .g g .gg -
- m.4.ew,;ygg~qdQ,ypn
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,.9
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M,y,g3GM- n..p.m, y M i 5 93,712 42,505 5 87,819 39,789 5 i85,791M i3V7833*y(73kw.
38492 V 434AepMEM,1gsdd 7 m %m ggp! m g.EsJSge,gg0@M(C. MS O ' k' N 77,278 64,386 l65,264M.453A53 $7.:ey44pjM L.,d 72.850 53J05 at amtutt M een w % R g34A33$ ' gw $,seva,y$ a.w_-
@ A.M, f
117.782 5 331,277 5 264,844 ' 5 --242,753b 2%D*gtMgb im wamas;g i7 R
, y u_ s~u m. . g. m p e
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3,956 , ' . 3.w 3,951 M 49WA%!@M8494W* W 0 %1 E ,936 EU ' ~ )
h.,1AE6 s; y4 5 -
1,%5 1,852 1/>71 w 7 9
,6,133 ~ n.aLS96M.w%.3A64(MS.
n WFp m 4.p%B83 5,215) w a.m-e 4se an 2 N H,g' l
8,068 6,600 . 5,823 t 292e V4 Ate- -
l 6.921 6.359 6.788 . -6427 *5.57613 ' CM 4 .585 & "4.193NM5A81: l 21,551 19,157 18,548; 3,ns . #.- - l
&&xhiM%%%hn.EQMS&Wh&MjW:,17,9F7M J15,923Sdt.t450Gw l 13A 12,328 12.028 s. 11,249.
.2.175 L.a 1998 N 58
- N ,N,,1E M % ',e113'3 ,,,,, ,'
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, . m =te ,.QQpV n35.aU"..Q=G' 4 w ,4 g,.ggs' CYP 3msnm ,-
53,115 51,940
.. $hhjNkbh $$tf 48,447 a ' 47,906Vk 45Ad5 yr
~? h YA %;.Q p s w.2nkhhhh k .6%361GwnSWHMWM
- .m'e!@h e 2.138i V2 Q P113 wCw g.s "N:
2.16c 3,180 2.15c 2,883 2.288 -
~6, a.c % n.L m n.s.wg.
. ,9, g gs gM;w.10s g p p1 ~7 rW %W"3,Iss p MW/2.34 c
c . ~y; ' re s 4 p@q~n. u "; e74;e%
.,y s a
...m m M,;2,M %
hhk$2 W M 3,3 s%wagW3 N h.s
@k -
kw9M%yws.g w
[ ._
e.~.: - w _m a 21,541 18,931 -11 : t 1'ca,50,4>a%s,37M.e&yar "
{@ F
- 5 1.077 1.154 4 em,Q4n'
- I .,- , b ,
5 135,211 '5 % -
wn r r 85.134" '5 m#J 76,646,.n;3p. . 4 4,392 4,346ygg $,a[MMO $
jA ?ti . ,
V i 10,036 l 10,198 [- s; a.~ 19' s. .
r-
- a. ,.
. p 1
$1,309,439 51,172,911 $1A77 -
1' gpy,Mh}N@hl;
~E QS 5 575,809 5 514088"ys 1,68MF
~
.. Aum 4
G Til $g"li;6 "
5
- pg@g'NggTN W' 80,776 ^ . 80,W6: s 3 "m,%'E w
. 9 MM76 T
!247. Int
~
332.725 - i 307.361N.
5 969.310 k
( $ 9(rl.225 T < .S - 7esamt$.y y ,
VM.4 +
.,j
+. n .
y ytty/d .u. m ~
t ,'
e 2,1)$ ' '
2,lM;ee n ,rsw* MWQ%c a . ,st@
o w,.
wih .
> J , p j ;f - %' \ ch, n V
,':, % q'hff!
%~ gy %"p&t*Qep p;.p.:
', wg p
@wg 'pg 4 W ; g& g %g;,M
- c
~, l r ' ~ ng*"5 y-km
&.r u:: >.ffp'h. M C&GQ %
<. , , w-c w e y p % qL g a.u%Qyyjg ssy n . .n. , y 2
m m.?
t/o ,. M i w p".'
, u.d T.MT+Mi
- ) (j$ Nf
&QQ y @,Q j& ~
, i.is
.]3f s t QDY&
l h
!* Qd
,, n m.w-e m.
f' .. s +l ,,,gtnw a ,
l hhl t
P %.6/J g %q'vggggp' L__ ____ _ _
On .
e 4 %
l .. ..
~
V 'g,
$ N ,1 % T.Y p- s OM m spsy, >94 %).pn 0f Qly ' . Lp. p n r e' J u s ?*aA na s.*c v u*
- hu *,
e
'A ~'
c ..
. . n ~4w ,
+
A % n w .-
-A. M mM
, 's&Q~ $ $ u} W h&n, T?.Y'?
- ~
vign. gen:yn.cs EAy?U*
' M $M ' ; W WP ug * ;
&e. d py4bM?NWWm?WAa'
SUMMARY
jM _,#.2:$
J O.? %W .# G N*W w,c*o.,, pW TM f+p$ $M FOIJCIE.S i - >- lt,.
.. & MWM a: _-
ph h- % "/:.ifv* .~u W j > ;)_
.._ _ emm,.- = -.. .
.x .o .- - w.-
,h h n m. k -.hdb .^ --
,e MQ$. p.' M l% w. ~ . -
m M. m u 4D ,M s .' m - g 5ns %
d.Q. A.% 'ufAMQ:;l M MmW M "T ~'~
'% &mmpm
-~
A. System of Accommes . RQ pQf f g@%e p.,f &,n yh .g n,;g) ' m! M " t ]QMW average de- . .
~.m l
The accounts'of 'ttN 16%. . . ~. .,
MM 4 ae,p.+ M
- hen
.m b..b'E 1-accordance with'the s;ystesg,g g"7, -* , M,,A ,.^. appWperk ns '
a m m by the lou. .isiana Public Se: rdoe . -- - r %
v Man a n.grw xv. mw.n w%en,.
which substantially conkmusMGM p' ^ edusal dys
, Energy Reguinorv C , ,
t 9 .n %'g' pan'hp$asioisM
.wawsh' a5 l -i O Pjonsion isMontributory costs i 5
. ;.n "~"
[ .~
-=
T'{@$ Mf%)egectivelf J4camAlmir annorbmion of 9PBjajaneenesdysuMJulorand as f @ @
B. Hevenmer ,'Q g y The Comy y w .
ords['MM , " [' M $ , ,Y [ ,% '
seQoosts ogy resasining periods Tbs ,o[,jshe, Cosapany customers. :or s c.g le^ man, as toM;A*.
O y.
M.
r . accrued for enq . <, ' ,
,%,N,WN.6_ fesd m iMm"*" e a _n d, m % .m .
"of ihe fiscal perio'd .' -- .
, pany include fuel adjus,m.het1.RIOsi,s,',cIn$eEliMO.ut.s tnic ~ -
r N E'u gka%g . d., k.essgky N Y Y.YD9$IM'"$'N - my fuel costs above nr belour e.amt e . th.e;4 dRowed e
k-w i.mdpueS
- n. % v ng
--e</e-m
&;mrw~ki4%*&'4 u. "*.r..K W-MAIMwa V
j to he N Bed: m Met l various required to be rate credited schedules to. cutamat are < , .
perms - u@ , WF.%M, Pedernt income er MThe las. return Costranyjoinsits indlaccame taxes are parentin filing a
> In January 1979 the Cosepany,vegelved " . T I; .
kp tion from the LPSC allokiejgsad l
Sposqpeny im , proportion to its con ;Mp$3
't6xMW9MN .
mV.;4 y.
w M . n <a w;;; n
.pany Io credit .or chang. .. e,w h. . .,,h
[,,. adjustment c;ause .in futuse
.. . .. m z.., m..
Meenketpee ,....y 3Ch
" ' ~ M {
tmder-collections of fuelcosts (1 cluded m bitse rates.
wmpa
'o
. gag,
. senemannt N% ~%7% -
-My 1
.jo 'phe Mi 1
7 ,
billing for fuel costs, the Congp,eny aasnaman,ad M' ~ "'are' deferred and amortized based upon the 7
ferring on its books fuel opst$g,k
[
t
, the fuel adjustment, L _Y *'WeI " %'litirtdeledgggnasy. nn,IMad'M ass' soeurai.M$
[ I lb Q p@QQQ
(, , ,: % billed to customers. ..
- y costs, net of deferred _
net ir.come in 1979 by pp ,
j.
ge' g g g"sg%jf~see. g% ~. y 6r.
c ~-
+
,, "%m %;) y* r$,.u$.y : - *%*b f
"! - . C/ tE d Flasit$nd jggj ; ji
- t. ., Utility plant is stated
" % gy h W -
add..i6sD a+ #.~ 'W NW-
.'dir.ect~ labor an.d. ,h-
- ~
V'v- s ~ w w
mn.
' ~' af4
- n M '
b s >.,
L m yW, Ev1Ph,@ddf *"%
Lduring constrtMan A M p<,LW e 9. m$ h
+
-b - - - - ~
." "@M9'eMN.
- ) -
1m. rettred are".re. move'd hg a. ' a w<.#.1wm.Fe,c 4.% . , s
~MmMWW~
plus._remoul costs.;- i%
F'l. ,
u < r <
g m j' M y f p g,;Cumulafed;de+rp..a p i 3ee h,n . . . .. W M D,,
i % " ?M. property nemithiuGides ana.gbeT - MMiF 3spensa.e_q ., gw
.af ayua. . s. . . Ato- +the- tie.n.x,.a,be,.f,.r..'~ 3*4 w %e
{ .e 4 5 l w
% j W
[{
.. at rates sased o. .e:
jarimas classes,K
'y hj hgpe hpMMpi i
ty - ~ yg yQggd. w w gg.t L~l.iO%hkwq
, .x l $%p%i&m u ~,f m4,m sy UW
%f Pf A
a 5 W.MNpQRT@MgrJg%p.g.
WM %h.Q p a et*
- &w Q Ql FMyj[W,e %
- W $y.
4 F
y [QQGg%gf mWW MpWLW h)y ;- f Y,y n y MWx.
&c > ., a
! c W> s ,
y y%c nf.Qv. %a;o %f
~pm ~o S W v.aF %..w, ge2 U t .
LL- . w w a-a,,g# ,,
%...m_gg sf. .esig,.)
......Ar-
-w.,- w e m-m.s w m
- _ ,_- ~ - . , _ . , , , _ . p., ,g. ,,,y p .,m p g w ,, w a, , . , , ,
,y
,,,,,,m.
4.,s Wy.r;., %m;;.y. gggq.,gg,wg, y ,r ,.g i, e .g.d..,,. m 4 - + v , y,.pm"4.u , , - - , -, ., g , ,
y
., 4 ,,
- p, h M, msg.jpw 7, c ...,. m ,,
- wr Q 9 a g",q _w R,g W;y K.U, Dft QpM 3.;4;,)2 fL2 c ;
Q,) Y. ,.# %
h;.
R,QtGrje 4 . 3q N,kf.Q.( , : .gllw i
>m,.
'Q .%!.f,y ma 9,...m., f nn.1 ,
- ' .. Mgb$.g.
?.. Q .}* g,Qm.. &&e. ,s m . f , m. s y..,, . , _ ,
A' N [ .EIy N * ' *
'. v[ M )', &,.s.rg- ,-nm Ny e r,1 g),"r.X e gg * ..'[. f "* 3 ( Dih,.[
' ' e 9 ~.e. y 4 gow .4: 9.-
w_ g
, . 7 , r,p . myg 4
. ag x,a n,. ,; p.
, qg m.. .
STATEMENTS OF INCOMEB A T s.
sh]. x 9 f $g N78 For the ryears ed%%%C;.pgy8
. dXg 9 ended M 3Q979Dl 5M4MM. fib @
.; W m% , .
79 '
4 p.,: yq ;h.: p%375 ap, OPERATING REVENUE 5ls@DQQ7dM.,mm.. , .,, y. ., .,y@qe,[.rtgyj;4. . . , ,
.aNg
,n,..,, . g);;:@ n, s557,476 4 OPERATING EXPENSESiW.vw n .
Wn..SRdd4, ~.,.m,, _ A, @3.3 x- /WA.
F, . ,.,
-pu.O '8 M., ;, ,;. .'N Se .
m o 4 4 .
.s1
.y W...M, , g.4 Operation:
,. p>/fdM FueI..........."m*$w.m .m &.4 .m .p'*uysp Av. n. e.. w..
m W ppWe N..g.s. h.,j.c.t
. AW,,.,
'~
y,".m'...., % _ g' 168.177 190,226 69,730 Purchased power. .. .
.T.WvC2.d.M,;M.g v.C.?.m., . a, ,,n., %, . %, M, ,i,. R m.2 . ..
. 140,111 38,318 v,.,43,430 Other.. . . . . . . /s. . 4 .R. a."c. m a 4 .. 3A r. ss..........
K.
Maintenance. . . . . . . .m.7n d;w&.i;.E i ' :6. O-. . . . . . . . i. . . . . . . ; . . . . .
31,269 g29,213 40.863 Rf38,389
. ~ x*'
Depreciation. . . . . . 3. : .W;.ng .; a.a w.,. . . .v . . . . ,5.'.@#"'* ';@'" :.7; L. 4,101 WZ4
- Amortization .,. g of pm e N ,101L. .CMb g*m.g"f......'~'..'y"...............,. M. ,9M g Taxes other 1han om* c'p'm'e,'t'a'se"s..'bd' *****#
...M., .;/'.~tma nt.ef r; rt. . n. Wm. - - , , ...w.@nos. , . . . .
22,750 .w. . 19.919 - %
Income taxes (Note 1).f.W, ., h. NNf.Y;M.V. m., Alr.m,;M .V,; u . h, -@ r.ia .R 387D65 - c,.
483,615 Total. . . . . . h. . , .W 2_ ._ v . .x e ,y. 3. _
OPERATING INCOM21. pry.f.7.$m. ,dqMW1W..sMWe,MQ&.4 73,861 g WJ10.g.glg.
'~
OTHER INCOhb5:' .,m e,.w A.n g ~. .wyw Allowance for equity, funds used durm,w:,.s m m;.agw a:p. .;.pg,g construction, p.20,8234 m . .y . 43;, . y;g,y.,M Miscellaneous income.-pet @ *;g; Myp4 .a. d.k;. :..4, g. % . . . . . I1,751 4,920 2,422;g<g g% 9h58 4 ~
Income taxes (Note 1)c. : 4 ;Y% Wa,i;v.%.tc.....~.9. p.3'. w :.,..&...... m
~ .
Total. ......,f'% m .n.# r....~. d, k,..%...............'..
32 g q w m n w,, ms wa..
4
...m , , m . ..w 47,393 .., 0g, y.303 r INTEREST 9 WWMMMg@s MMpqq.cn n InterestCHARGES: on long-term HM$$$@. debMAn@sd@@~Q^@ #O " - -
man.7.m;.EW.h -
60,2634hl.9$9 m eu A
Other interest-net;T.1;LYW"@*n'r?.tv'?mww.+;m~ ~.w' '+;mm' .M"m . 10,993 6 4 ,M 6 " 6 ~, G C
~ ' -
t, '
i Allowance for borrodesfudds Usedilu~ r inMastruction.sk!MfMdi.dh i15,131 MOO 256M&&
56,125
?
Total. . .. . 9 Q.M, wm hpMQp,y.M. h,*h*f.%h.~
- n* g ~ [, m$3.744v ' '" P
. . ~ < .
e". . . . . . .~. . '. . .'. .' . .' ". . .~. . '. . . '. 4 . . . . . . . . . . . ". . .". . . .' S 6 5,129 1-N ET I N CO M E. . . . . . . . .n ..p .
%m lL.%y R D.
e =l.1 j%g~ Md $b JMV $+wld WC .L m w wwM 1
3
-m .
N.h %M--+h h 5 M h . m 9.ubv55QWig. khh h_h, ,
I A N nib.. O..S M.,~ $ M J R g 3.k b;- -ForSTATEMENT $$N977 . ,E.and ;31J
- ~ .
578.M SWFVEAELC!@3.
- w I.N$NU,.m ,s.,,M_m.
mMg. m:r , ,%us g D"yV the years ended Decemb.er ym s p.ws pggw yg,oy&q n.p .ppgy
...'ym.a4sgga p.y g,g,eygyGgc,p umwy nmsg.q e gQc;g;.g:
~ ,
[
( g r, . g sg # pA gn :
s p ypy4.g ya m .cgh. f.g.g
[.
n.Mepw.WM6o%M S 63,292 p9A636%@1 ,
RETAINED EARNING $i.3ansary.th Mm$$M$KddNM.,;Mdh 65,129 b51!I4U$$,n ADD-Net income. . . M.ps,% DMm.hd.,M,N m nn v me l.
,v 4 4[h, h
~
p4 yy[qe4 V.
, Totala . )
Q3;1 hjN f,ryh gy . 128A21 >
jg{74
)".
~ + gy gye Dividends-c heggjg, m.m.:1 g.p-.e. A.m..s.i ggl g gw ,a.. g. .. g g a16,n9 g g -g6.106 gjt g; a7,g g#gnun gg
,, p,eferr,a stocgm a . o M.M. 52,673 ho42 f
'. .,~ LCapital Common ~ stoc@ y tY st'ock'espensen%.m d Mf.jpi wy dy'm#mMQ@MC , m$[MMpdW%%.m. u.
- r.
w wm s.u$m getQ S h .Q
- o y rA m TQQ%w
$.\am.. .W.qu %u$n.uM w.n. Ag 458 69,880 s fm < ML315 /94. fg yT M w#Q, h.
e ..
y m,
','js+.[ J.' Total...a... Y3'.'E$kEMI m . ' [~Jk 7h' MfEY%$dh d$h%MM
- 76.MpW;
' ; RETAINEDEARNU40%
$ MWiE%Bfn[$4hp[lL s 58,54I sM'W.m %@4%y x.._w 1 - ; - , , :.my n _ . 4 > g g ggg g g y mk gmtykg .
N v
} ,n n n a n n n" wm gQ ; ,
su mia 6; no.new use.g.nsm,nW u.,sw.w_w,W@n;N+,wdcqM
%$yMygpM g m gg.jgi wW%gygg y _ " vg a p M
l[ n q%qj g g mm g gm g e.f g &g;g g giQ M m @ @w ,gh.y g gg gu gg e .
tQ g gJ.ig g,a$ m,,
gQ yahfy gg-e$,p$Qgjp[wbp$M)o;Qgy y 4.'
py @ ha.
y;if Y y Q 99.v ps y g l [,
s.
s
, n..
>,m;
- ; m p y;+w%m x mg
- n .A pytm.Qm;gpy x y ; y g h ,a m g g w , 4 ,;. 9 , ,g y. g; w ,3 y ,y g g w g
m
. cr -u r, ..
1 yp. p.. yn . ~ . u... a . m w . w . .
@ . ;I n.wx jh ,e Q.-
'k mywm f. ww A.hw &M[f,nQ"' gg
.h J m.y gj y g.n g4g Ryffyp;Ql4gfg QppQw;h4
- I\ ,, [h ,
5
.,a n~
m +y y ,' p:.J.ff W hi,[m;tp a
.w
r v.. ...,v.,;w
, . ,.c c a ,n u m ,.
. n.nn ... g'n - ~
..y.
x., w -.; -
...e.r . .n....
..s,.
- a, m . , g, -
.- n,nk y + s q a mp p yn'.' k, vg.n,n. .m ' W ,w 1w.a 4,,9.n. * - ',n m,. .s..am . ~.; p . ~
+ p. .- ',M ,.
- w. wn.n. .w -
, ~
w ;- t.A, W.? G. 1,, .: w.4a.%..&,:
} .r !d. 4/M.(, ,p ,,
o ..
- .r'k. . .c+. .r., .
rg : A u,e.,,..3 g . b(W ,% g w.Ar.t. p/7
,. t -
f
' s
')
ezso.. M 47.~ e- L ~ s.
Mm m f.m.. ~y /
n..., , . .
. . ; g~..
.w.
Y 4 A g [' A NWl r
' ' ' ^ (
.n .n~ , . .
n' N 4 A '.S . ,
.. ' -.W ., '.9 f.
BALANCE.197,9 SHE.E..TS an.d MM.
oo 1918m._f-.m . h. ,
December 31, ww. .$ n, m.mv.~.
7 u .,
.g.
...A y , %. . 4w y f.r,. w
+
a sano s. ,
. a
~
n
,] k . , r f* ... . . . j ; . . _ . , 5 .ei..-
4
. .,.._.m+_n w.
s -- .
.w A .c
~,_
.v
-'..~._I
_ . c. m
.. -- ._ m_ _._s .
y pn m & ..^V W k A %
I
- 4. A 8 Y 1-,. ..e.
g, ASSETS
~
~ . d_ 6 .
m
_79. _.K. 78 O -.qx.c. ~.
. .a c_..,. J., G. .a _ .~
. . ,. ., . . (In Thousands)
.o u . -
- + c,.,r.s,-
- e ,7 _ v.
UTILITY PLANT: ..~ ~.,-
El e c tri c plan t . . . . . . . . ; . . . . . . . .'. . . . .. '. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,237,269
- 51,193.456
, Construction work in progres;. ;. A.n.n.v.i. . . .w . . . . .'. .. . . . . . . . . . . . . 831,837 C 599.4 %
, . . . - . - . , , ., ,. , s.. , ..
Tot a1. . . . . . . . .- '. . #. .^, . . . . .%. . .*. . . . .. ^. . *. b. .". .. . . ."v @
. .. . . . . . . ~ . . " . . . " . . " . . . . ~ . . . ., . .069,106 ' L1.792.952 -
Less accumulated depreciation.'. . . . s . . . . . . . . . . . . G. . - .,, . . . . . . . . . . . . . . . 353,994 m 317.583
- r Utility plant -. net.M r
. . ; . .. . . . . . . a. . . . . . . a . . . i. . . . . . . . . . . . . . . 1,715,112 L I 475.369
. t.
b '
1
! OTHER PROPERT 1N.13.IN.,4 -ChbTMENTS. .
- ., ~ ~ . . ~ #.# . O#~ %,.,,-. ~. v o ',
) + -# .% s ,
Investment in assoc.iated companyw.a.ty at equi (No, te 4).m . ..................... . 36,997 p7 m 20.802,.
L 1
Other. . . . . . . . ................s....s................................
y -, m-383.
p 3.%
Total . . . . . . . . $ . .,. i. . 4. . . . .' .' . , . . . . . . . . . . . . . . . . . . . . . . . . . . . .
37.379 y 21.160 y
CURRENT ASSETS: F
- f. -
C ash ( N ot e 2 ) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,078 , 13.559
. Special deposits. . . . r , a . i a 4 2.M. , u . . .i. n . . . . . . . . . , . . . . . . . . . . . . . 10,289 k 10,015 -
- Tem porary cash investments. .~ . . ., . .-. .. . ., . . . 4. .. .. ,. . . . . . . . . . ,,. . . ., . . . . e . . 8,000 p.- ..
. . . n- . . , e
. 696 ~ ~-
? Not es recei vabl e. . . . . .~. .. . . .- .. '. . .~. . .' . . . . .~. . . . . . . *. . . . . . ~. . . . . . . . . ". . . . . 938 ,.
Accounts receivable: i ' '
, f ,
t^ Customer and other-less allowance for doubtfuir ., .
M,, o(
accounts of 5135 /)00. . . . . . . . . . . . . . . . '. '. . . . . '. . . . . . . . .%u......'....... 26,267 D, 17.651 ' .
A ssociat ed com panies. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 100 6 64 Deferred fuel costs. . . w. . . . . ,. . . . . . .. . . . . . . . . . c. . . i a. . . . . . . . . ., . . . . . . 15,054 C , : -: - ;
j_ Materials and suppl.4at -m average, cost.". . . . i. . i. .r a 6. . . ,,3 .. .... . . . . . .. . . 10,795 p , n8#43- n;s 1,020 ,m c Prepayments. . . . i .. p . 4,, c.,w . .w . mgy... . . a , . w, - -s -, .., -., ....m. . . - . w . n. 2. n,. , , w~ o n i,220 %w t
%. A_
Other. . . . . . . . . . . . . . rs . 4- n . . .w . . . . . ; . s. , J . L . . . .T. . . . ./.., n a.k -. . , . . 3.955 ? g- 2923 n M.c.%.m
)s
- y
' c:n .
~ . x .wm tan, +n w a ,
. r .. .w sw w .
.'..V.,._. .. 87.4 % F_ 154.173 ; m,; _ , ,
t Total.
t
- 3. . ... 3 m.
. y.- i.s7 ,.%y%
, . ;A+ .q, p,sW.mt,lu,4.
m i.g nw mi. . ,. ,.m. . q ;L
.. r
- p. .L. ,,, t. ,s.,p.~.
.. .W. .~,.w.,
w ,
- .n. ..A.g m. . . _. . .
s, . , e, : c y. % g w s. ;, . ,.r.. -%,3
-g .,,.e,,.y.g
,.,w-yA V. Q.%. .*
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b 1979-65.140,000 shares; 1978-- 53.776,000 eares diih.-EEM (#,*.D w. 8 428,900 JB8,9W M"
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~. m m. , .. .. ,, c j i Total common shareholder's equity. .;;;; . .'a ;i; /.. /. . . . . .W. ;g. .n . . . . 487,441 $.487.192 Y J- -
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LOUISIANA POWER & LIGHT COMPANY NOTES TO FINANCI AL STATEMENTS
- 1. INCOME TAXES Income tax expense consists of the following:
1979 1978 (In Thousands)
Current:
Federal. . . .5 106 5 5,149 State. (3, 797 Total. 103 5.946 Deferred-Net:
Liberalized depreciation 7.674 8.494 Deferred fuel costs. .. . 7.289 -
Amortization of property loss. . (1,986) (1.986)
Other. . (1.062) (388)
Total. , 11.915 6.120 Insestment tax credit adjustments-net. . (1,019) (1,205)
Total income taxes. . . 510.999 5_1_Ob61 Charged to operations. . . . . 522.750 519,919 Credited to other income. . (11,751) (9.058)
Total. . 510.999 510.M61 Total income taxes differ from the amounts computed income before taxes. The reasons for the differences are as by applying the statutory Federal income tax rate to follows:
1979 1978 (in Thousands)
% of % of
. Pre-Tax Pre-Tax Amount income Amount Income Computed at statutory rate. ... ...
535.019 46.0% 531,011 48.0%
increases f reductionst in tax resulting from:
Allowance for funds used during construction. (21.092) (27.7) (14.9186 (23.1 )
Tases capitalized on books and deducted on tax returns. . . (1,797) (2.4) (1,799) (2.8i Ot her - net. . . . (1.131) (1.5) (3.433) (5.36 Recorded income tax expense. . . . . 510.999 14.4 % 510.861 16.8%
Unused investment tax credits at December 31, 1979 the basis of such credit contributed. Effective in 1979 amounted to 566,140,000, of which 510,130,000 may be the method of allocating investment tax credit was changed carried forward through 1984, $24,269,000 through 1985 so that it is allocated on the basis of each company's portion and 531,741,000 through 1986. of the consolidated tax liability; any additional credit Prior to 1979 the investment tax credit utilized in the uti!ized is allocated on the basis of the remaining tax credits.
consolidated tax return was allocated to the Company on
- 2. SilORT TERM llORROWINGS The Company has arrangements with certain banks and December 31,1978) with respect to the amount of its loan a commercial paper dealer providing for short-term borrow. commitment and/or with re ings of up to 5150,000,000 (5120,000,000 in 1978). Accounts to the Company outstandm,spect g, but m no to case t,he amount does anyofitsloans
[ are maintained with the Louisiana lending banks and, compensatmg balance or the total of such compensatmg t
although immaterial balances in some of these accounts balances so required exceed 20%. The amount of unused may be deemed to be compensating balances,most of these short-term borrowings as of December 31,1979 was accounts are working accounts and fluctuations in their $117,625,000 ($35,910,000 as of December 31,1978).
balances do not reflect or depend upon fluctuations in The short term borrowings and the applicable interest i the amounts of bank loans outstanding. Each of the non- rates (determined by dividing applicable mterest expense louisiana lending banks requires a compensating balance by the average amount borrowed) for the Company were as
($ 11,862,500 at December 31,1979 and 512,950,000 at follows as indicated at top of following page:
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1979 1978 71'housands)
Maximum aggregate amount outstanding. .. . .. .. ... . . 5114.628 584,090 Average borrowing:
Bank loans. . . . .. ... . . . . . .. 5 52.773 522.340 Commercial paper. . . ...... . .. ... . .. . ... 5 29.503 528,476 Average interest rate during the period:
Bank loans. . . . . .. .. . .. . .. . 12.1 % 8.8%
Commercial paper. . . .... .. ..... . .. ... . 11.5 % 8.8%
Average interest rate at end of period:
Bank loans. . .. ... .. . . ... .. . ..... .. 15.3 % 11.8 %
Commercial paper. . ..... . .. .. .
11.5%
- 3. RETAINED EARNINGS The indenture provisions relating to the Company's long- dividends on common stock. As of December 31, 1979, term debt provide for restrictions on the payment of cash 544,419,000 of retained earnings are free from restrictions.
- 4. COMMITMENTS AND CONTINGENCIES The Company's construction program contemplates ex- and costs of capital and,in return, will receive the power penditures of approximately $284,936,000 in 1980. available from MSE's Grand Gulf Plant. The completion dates of the two units of the Grand Gulf Plant, on which The Company has a 33% interest in System Fuels, Inc. $1.4 billion has been expended through 1979,were changed (SFI), a jointly-owned subsidiary of four of the principal by MSE in December 1979 to 1982 and 1985 from 1981 and operating subsidiaries of Middle South Utilities, Inc. SFI 1984. respectively. Under certain circumstances, payments operates on a non-profit basis in planning and implementing programs for the procurement of fuel supplies for the may be required to be made commencing December 31, generating units of these operating companies;its costs are 1982 if the first unit of the Grand Gulf Plant has not been primarily recovered through charges for fuel delivered.
completed by that date. The Company's liability under these arrangements is not prospectively determmable.
To finance, in part, its fuel supply arrangements, SFl On June 1,1978, the Company sold its interest in a has entered into various loan agreements with the SFI stockholders. As of December 31,1979 the Company had supply of nuclear fuel for 58,210,000, representing cost, loaned 536,990.250 to SFI pursuant to the loan agreements. and simultaneously entered into a 560,000,000 nuclear fuel Such outstanding loans have various maturities through lease. l_ ease payments, based on nuclear fuel used, will be treated as cost of fuel. The lease,unless sooner terminated December 31,2004. At January 1,1980 the loan agreements authorized SFl to borrow from its stockholders up to by one of the parties, will continue through June 1,2028.
The unrecovered cost base of the lease at December 31, 5213,000,000, and the Company's share of the unused loan 1979 was 513,425,000. Other lease commitments are not commitment is approximately 550,310,000.
in connection with certain financing arra igements by SFI E* ""'
totaling 594,723,000 at December 31,1979 the Company The Federal income tax returns for the years 1971 and the other SFI stockholders have covem nted and agreed through 1976 have been examined by the Internal Revenue severally in accordance with their respective shares of Service (IRS) and adjustments have been proposed. The ownership of SFI's common stock, that they will tak e any Principal issue is whether customer deposits are includable and all action necessary to keep SFI in a soend finacial in taxable income. A formal written protest has been filed condition and to place SFI in a position to discharge, and and conferences are being held with an Appeals Officer to cause SFl to discharge,its obligations. of the IRS. Any final liability for taxes resulting from settlement wMe IRS wouM nodave a matepaMeet on SFI has entered into a contract with a joint venture for a net income. Income taxes on customer deposits would be supply of coal from a mine to be developed in Wyoming n rmalized. Most of the other issues have been settled and
- which is expected to provide 150 to 210 million tons over a adequate provisions have been recorded.
l period of 26 to 42 years.
The Company made a filing with the Se,curities and
. The Company, together with the other Middle South ** i h System operating companies,is obligated under arran8e- tzat.hange ion to sellComm,ssion 15,152,000 shares for the purposestock, of common of obtammg no par aut or-ments with Middle South Energy Inc. (MSE) to maice value, to its parent company for $100,000,000 during 1980.
payments adequate to cover all of MSE's operating expenses
- 5. TRANSACTIONS WITH AFFILIATES '
The Company buys from and sells electricity to the Operating revenues include revenues from sales to operating subsidiaries of Middle South Utilities, Inc., its affihates amounting to 529,366,000 in 1979 and 541,655,000 parent, under rate schedules filed with the Federal Energy in 1978. Operating expenses include fuel cost and purchased l
i Regulatory Commission. In addition, the Company purchases power charges irom affiliates totalling $158,788,000 in 1979 fuel from System Fuels, Inc. and 5119,408,000 in 1978.
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- 6. QUARTERLY RESULTS (Unaudited)
Unaudited operating results for the four quarters of 1979 and 1978 follow:
Ouarter Ended L March 31 June 30 Sept. 30 Dec. 31 3 1979: (in Thousands)
Operating revenues (a). . . .. . . . . 5109.885 5121,435 (b) 5169,192 5156.964 Operating income (at . ... .. .. . .. . . . 20.973 15.525 (b) 22,668 14,695 Net income (a). . . .. . . . . 17.031 12.569 (b) 20,966 14.563 1978:
Operating revenues. .. , . . . 5112,993 5 88.757 5148.957 5105,668 r
Operating income. . ..... ...... ... . .. 13,692 4,195 28.368 23.055 Net income. .. . ... .. . 9.007 639 24.432 19,666 (c)
In the opinion of the Company, these operating results (c) A reduction in income tax expense of $1,730,000 was include all adjustments necessary for a fair representation recorded in the fourth quarter of 1978 for the excess of the amounts shown. Such adjustments consist of only taxes provided for the years 1967 through 1970 over normal recurring accruals except for the following: the settlement amount reached with the Internal (a) Reference is made to Note B of the Summary of Revenue Service.
Significant Accounting Policies with respect to the The business of the Company is subject to seasonal deferral of fuel costs. fluctuations with the peak period occurring during the t (b) A refund of 52.880,000 to industrial customers was summer months. Accordingly, earnings information for any
[ made in the second quarter of 1979 pursuant to a three-month period should not be considered as a basis of rate-making proceeding. estimating the results of operations for a full year.
- 7. CllANGING PRICES (Unaudited)
The following supplementary information about the Changing Prices" (FAS No. 33). It should be viewed as an effects of changing prices on the Company is provided in estimate of the effect of changing prices, rather than as a accordance with the requirements of Statement of Financial precise measure.
Accounting Standards No. 33, " Financial Reporting and f Statement of Income from Operations and Other Financial Data Adjusted for Effectsof Changing Prices For the Year Ended December 31,1979 (In Thousands)
As Reported in Adjusted for Adjusted for Changes the Financial General Inflation in Specific Prices Statements (Constant Dollars) (Current Costs)
Operating Resenues. . . . 5557.476 5557.476 (a) 5557.476 (a)
Operating Expenses (excluding depoeiation). . . 442.752 442,752 (a) 442,752 (a)
Depreciation. . . . . 40.863 M.144 85.095 Total Operating Expenses. . . . .. . 483.615 526.896 527.M7 Operating income. . . . . . 73.861 30,580 29,629 Other income. ... .. . .. 47,393 47,393 (a) 47.393 (a)
Interest Charges. , . . . ,. .. .... .. .. . (56.125) (56.125 N a) (56.125X a)
Income from Operations 4 excluding reduction to net recoverable cost). . . . . 5 65.129 5 21.M8(b) 5 20.897 increase in Specific Prices (current costs) of Utility Plant held During the Year (c). . . . . . . . .. ... 5201.029 Reduction to Net Recoverable Cost. . . . . . . . ......... 5(151,872) (21,094)
Effect of Increase in General Price Level. , . .. ... .. (330.856)
Excess of increase in General Price Level over increase in Specific Prices After
- Reduction to Net Recoverable Cost. . . . . . . . . . . . . . . . . (150.921)
Gain from Decline in Purchasing Power of Net Amounts Owed. , 139.Mi 139.M1 Net. . . . . .... .... . .. ... 5(12.031) 5(11.080)
(a) Assumed to be " average for the year" dollars and thus (c) At December 31,1979, current cost of utility plant, net l are not restated. of accumulated depreciation, was 52,902,015.000, while 2
(b) including the reduction to net recoverable cost, the historical cost or net cost recoverable through de-loss from operations on a constant dollar basis would preciation was 51,715,112,000, have been 5130,024,000 for 1979.
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Five-Year Comparison of Selected Supplementary Fintncial Data Adjusted for Effects of Changing Prices (in Thousands of Average 1979 Dollars)
Year Ended December 31.
1975 1976 1977 197M @
Operating Revenues. .. .... ....... ........ . . .
. 5357.178 5422,402 5453,906 5507,758 5557,476 llhtorical Cost Information Adjusted for General inflation income from operations (excluding reduction to net recoverable cost). . . 5 21.848 Net assets at year-end at net recoverable cost. . . . .
5461,943 Current Cost Information income from operations (excluding reduction to net recoverable cost). . , , 5 20.897 Excess of increase in general price level oser increase in specific prices after reduction to net recoverable cost. 5150.921 Net awets at year end at net recoverable cost. . . .. 5461,943 General Information Gain from decline in purchasing power of net amounts owed.. 5139.h41 Aserage consumer pnce index. . 161.2 170.5 181.5 195.4 217.4 Constant dollar amounts represent historical costs ad- As prescribed in FAS No. 33, income taxes were not justed for the effects of general inflation. The effects are adjusted.
determined by converting these costs into dollars of equal The regulatory commissions to which the Company is purchasing power using the Consumer Price Index for all subject allow only the historical cost of plant to be recovered Urban Consumers (cpl-U). in revenues as depreciation. 's herefore the excess cost of Current cost amounts reflect the changes in specific plant stated in terms of constant dollars or current cost prices of utility plant from the year of acquisition to the over the historical cost of plant is not presently recoverable present. The current costs of utility plant which represent in rates. This excess is reflected as a reduction to net the estimated costs of replacing existing plant assets, are recoverable cost. While the rate-making process gives no
%hitman Index of recognition to the current cost of replacmg utility plant, determined Public Utilityby applying the Construction CostsHandylWI)
O to the cost of the Company believes, based on past experiences, that it surviving plant by year of acquisition. Land and certain will be allowed to earn bn the increased cost of its net other plant assets which are not included in the HWI investment when replacement of facilities actually occurs.
were converted using the CPI-U. To properly reflect the economics of rate regulation in The difference between current cost amounts and con- the Statement of income from Operations presented above, stunt dollar amounts results from specifie prices of mility the reduction of net utility plant to net recoverable cost is plant (as measured by the HWI) changing at a rate different offset by the gain from the decline in purchasing power than the rate of generalinflation (as measured by the CPI-U). of net amounts owed. During a period of inflation, holders The current year's depreciation expense on the constant of monetary assets suffer a loss of general purchasing power dollar and current cost amounts of utility plant were while holders of monetary liabilities experience a gain.
determined by applying the Company's depreciation rates The gain from the decline in purchasing power of net to the indexeil amounts, amounts owed is primarily attributable to the substantial The cost of fuel used in eneration has not been restated amount of debt which has been used to finance the utility from historical cost. Regufation limits the recovery of fuel Pl ant. Since the depreciation on this plant is limited to the costs through the operation of adjustment clauses or ad. recovery of histoncal costs, the Cotr.pany does not have justments in basic rate schedules to actual costs. the opportunity to realize a holdmg gam on debt.
- 8. ACCOUNTING POLICIES The summary of significant accounting policies on page 14 is an integral part of these notes to financial statements.
ACCOUNTANT'S OPINION louisiana Power & Light Company:
We have examined the balance sheets of Louisiana Power & Light Company as of December 31,1979 and 1978 and the related statements of income, retained earnings, and source of funds for utility plant additions for the years then ended. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures a ve considered necessary in the circumstances.
In our opinion, such financial statements present fairly the financial position of the Company at December 31,1979 and 1978, and the results of its operations and source of funds for utility plant additions for the y ears then ended,in conformity with generally accepted accounting principles applied on a consistent basis.
,7 New Orleans, Louisiana February 15,1980 N
DIRECTORS OFFICERS AND DEPARTMENT HEADS James M. Cain, New Orleans, Louisiana J. M. Wyatt President. N w Orleans Public Service Inc. President
' Charles J. Cassidy, Bogalusa, l.ouisiana G. D. Mclendon Chairman of the Board. First State Bank & Trust Co. Senior Vice President-Operations
' Harry M. England, New Orleans, louisiana hl,hpf,ss e t-Power Production President. Coastal Canmng Enterprises. Inc.
' Tex R. Kilpatrick, West Monroe, Louisiana K. M. Brumfield Vice President- Administration President. Central American Life fruurance Co.
3ack Davey Floyd W. Lewis, New Orleans, Louisiana Vice President and Chief Engineer Chairman of the Board & Chief Executive Officer. 9, p, pege Afiddle South Utilities. Inc.
Vice Preside t-Consumer Services E. A. Rodrigue, New Orleans,I.ouisiana J. H. Erwin Retired-Former Chief Executive Officer Vice President and Treasurer and Chairman of the Board of the Company J. M. Mooney H. Duke Shackelford, Bonita,Inuisiana AgriculturalInterests Vice President-Governmentaland Public Affairs and Assistant Secretary J. M. Wyatt, New Orleans, Louisiana W. H. Talbot President of the Company Secretary and Controller N. J. Briley i Member of Audit Committee ^##'##### #"###7 T. W. Boatright Assistant Treasurer R. N. Garrett, Jr.
Assistant Treasurer E. A. Frisch Afanager of Corporate Services DIVISION MANAGERS D. E. Knowles, Jr.
Afanager of Divisions J. Q. Cipriano West Bank Division O. K. LeBlanc Director of Ps:blic Relations J. J. McCloskey, Jr. L. F. McCrocklin Southeastern Division Director of Personnel C. E. Vaughan, Jr. 2W. C. Montgomery Northern Division Director of Rates and Research
'S. G. Cunningham, Jr.
Director of Rates and Research General Office: 2 Retired from Company January 31,1979 142 Delaronde Street 3 Named Director of Rates and Research January 31.1979 P. O. Bos 6008 New Orleans. Louisiana 70174 Telephone (504136t>2345 Transfer Agent for Preferred Stocks liibernia National Bank of New Orleans 313 Carondelet Street New Orleans. Louisiana 70130 Registrar for Preferred Stock:
Whitney National Bank of New Orleans 22h St. Charles Avenue New Orleans. Louisiana 70130 Trussee for First Mortgage Boeds: Front cover-LPdL's Waterford3 Chase Manhattan Bank. N. A. nuclear unit is scheduledfor completion The Corporate Trust Administration Division in early 1982.
I New York Plaza-14th Floor New Yd a. New York 10081 Back Cover-Oak Alley Plantation.
This report is prepared primarily located on the River Road near Vacherie.
for the information of security holders is one of many points ofinterest in South
- and employees of the Company,and Louisiana.
- is not transmitted m connection with -
l the sale of any security or offer to sell or offer to buy any secunty.
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BULK RATE U.S. POSTAGE LOUISIANA POWE A & LIGHT PAID woott souts utot(s systre Permit No. 540 New Orleans LA.
142 Delaronde Street P.O. Box tiXE New Orleans, Louisiana 70174 l Address correction requested i
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