ML20126D317

Annual Financial Rept 1979

ML20126D317
Person / Time
Site:	Waterford
Issue date:	02/15/1980
From:	ARKANSAS POWER & LIGHT CO.
To:
Shared Package
ML20126D315	List: ML20126D314 ML20126D317
References
NUDOCS 8004250369
Download: ML20126D317 (24)

Text

. _ _ -

.- g M

m O

1979 0 aseon'l'*

ggA POME g,,1GHT CO Y

\\

/

i! '

_t

-6 2503 i'

=

i i

i Key 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

=w

w-

/

q:

u

'Y si l

fi l

'k

?.

l I

s d. 'rk

. ??}+:4 e

n=

i i.

I m

4 ke e-

~.

'ma "P-g, g

N:=

N *. # A,,,

l hau'o eneuncers studs s anaructunn plans inv i1% i t Matertord ? nuclear unit sn backerourtd

l, g

. ~ w13r.w.

• +

}

? [

N1I gl 5

f I i"

'),

N,. Q[rn, my%yu pm

+

wr;wg ;;. fy.fk N

L

.n u

-n To Our Stockholders and Employees:

.~i.r c,2. ".,, ~

V 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 p{f,

/(:.

Construction ( AITJDC). This non-cash revenues necessary for a company to

.,.?

item amounted to S45.9 mi!Iion in 1979,' Lpay financing costs on capital supplied C

,F an increase of $14.8 mI!! ion over 1978. ~ by investors for its customers' future elec h.~

6

,a tric power requirements. We believe Operating revenues for 1979 totalled. revenue for CWIP eventually must be

([i b

.a 5557.5 million, 22% greater than the included in establishing fair and reason-b 1978 ~ operating' revenues of 5456.4

$5 S.

' million. Ilowever, operating expenses able, rates for electnc utilities u r

I"uisiana, or we will reach a pomt m rose more sharply, amounting to 5483.6 which facilities needed for the future 7~

million,25% more than 1978's operat.

growth and development of this state ing expenses of 5387.1 million. Chief The. ele ~ ic utility industry cele-among these spiralling operating simply will not be able to be constructed ctr 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

?. Twe iraportantfdevelopments oc-curred dunng the yeir-the connect-also rose from the 5168.2 million in same rates be applied to its Algiers cue

s F,.

Ing of die Company's 500,000th electric 1978 to $190.~2 million in 1979, a 13%

tomers that had been granted by the customer in December, and a measure increase.

LPSC, and had the effect of reducing the Company's originally requested of rate relief which, based on today's Fbr only the fourth time in its his.

53.2 million to 51.3 million. On Feb-4 inflationary pressures, is far from tory, LP&L registered a decrease in the J

adequate.

annual kilowatt-hour use of electricity ruary 21, 1980, the City Counci!

,e In ek> sing the Seventies and looking by its average residential customer.

granted,LP&L the 51.3 million re-to the Eighties LP&L successfully The average residential customer used quested m the amended application E

completed.a decade fraught with 13,758 kilowatt hours in 1979, con-The Company's customer count h

serious problems and challenges for the siderably above the national average of reached the 500,000-mark in mid-Company, chief of which was its finan-8,826 kilowatt hours, but down 305 December, and ended 1979 at 4

cial situation. Although many of these kilowatt hours from the average resin 500,710. This was an increase of problems remain with us, including the dential consumption for 1978. This 17,326, or 3.6% more than the end-of-critical financial distress, we are cau.

decrease is attributed largely to suc-1978 total of 483,384 customers. The tiously ' optimistic about the Eighties.

cessful efforts by the Company in its increase was due in part to the addi-Following the Three Mile Island p m tion of c nservation of energy, tion in July of over 2,400 customers ir 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, dividual meters.'

the Town of Jonesboro held an election m

b torium in Loulslana to shutting down

. The Concny was granted a $59.6 :. in December 1979, voting by a ratio of

! 'under %geneFating %tations already 7-nuclear "

mne to one m favor of &&L serving ndtruction3cting respon.

million increase in its electric service V' d ! '

" rates December 18 ~ 1979--only the..,the electric needs of its citizens.l An P

iibly T thel legislature, defeated or second ~ increase in its history. The ~ application has been filed with the hV -

' deferred action on all th'ese bills, it did 6

Iouisiana Public Service Commission,x, Securities,and Exchange Commission'.

pass resolutions caffirig for study com-in approving _ thei increase...did not Jand &&L should begin operating the

^

M ' k Emittees to look into the' safe and or..^ allow the Company the additional rev MO.nesboro elptn,c properties before F

fdedy deve16pment of;ouclear' power

- enue for Construction Work in Progress j mid-1980.-

g+

~

f facilities ~id the state,w b

I ' The CoE pany'slargest construction (CWIP), which the Company had re. ~ A new computer-operated telephone

. 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

, 978..The Company had asked for m ' General Office and its three division 1

7, Taft 12.JcStirided ^approximately on rate 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-

{6 amount s

D'.,,

to L,P&L's' curre'nt' 3'enerating capa.' f" *, bility, is Wheduled : forTcompletion, th t

d the MSC yout &&L. but also to be less expen-

~

~

fac

+ Net locome of the Company in 1979 act,mg up to k

in cady W82., y qq -

g on the Company,s rate request... system.

3 m,n m

y we were disappointed that'the LPSCP Go$

' h' k,-

Lwas $65.1 million, sin tr crease of $11.4 did'not"see fit to grant' the'eiitire red i

'a "c

p y

nullion per net income in 1978. Ilow" quest,.which, was badly _ needed. to:-

restore financial health and stability to w,

,j.

~ [L t (

the Company. We fwere particularly-7

,, M 1h,.

, disappointed that the WSC ruling did '

1-

+

not include the revenue for CWIP as p

C., ' ".p[Q _

-l

~ r_

a.

k t

GI'*^$ ~~K]

',. +'b

.k' i

g',

.39 l { Q l f 7 ';i u.. ~

e Y

h 1

g' s&

'N,JP,

%~

&n r

r s

L ' Y g, 7

(

yW J :

gx y;4., ; y v

+

s

w

x,~ y 3,

. w,,,.

,y.r-~.e-m A N R $.d &a w&, &a % h &n,. x% U M %.d k a i l:4 4 5 &m y& W :,w

..o. q

.,,c, N

s I

<gwy p w

ewo v m. w -

s-u u

- W:%.

.t %.. %p*@q:x.u. w,,.y.,,,.../h

,p m.-u M,bp#g.97

~ ;.

n a.. v ; w.

e~

rydh a

'Y'W A-

• f '

1

+

a 4

.~,.....m.

y y -

_ 9 :4 74 % q? %.psa r 2 f2.M."

L'

~..

Odhd%%h,KN.%gv W F

' g g: Q % q gyg

\\

w:

, w,;.

7.:..

1

. 2,4 s3 A W pp 2.n m,

m.

r.

. f DNNINd$$hNbN5$M45dNiW'K%.uMN.MIISN...A 1

The employee benefit program coat-J M r

/ 9, tinued to be improved by the CompanyNy$ I C

in 1979. At the end of the year, a totalM.U;2a, r.y of 1,928 LP&L employees (83%) wereTM ~

g I

participating in the new Middle South *.n cs Utilities System Savings Plan begun?.f! ~

~

October 1,1978.This plan provides for.R% + pn a

..y w

b y.

~

the Company to contribute 50 cents for!. R.

each dollar an employee puts into theMO NB

..Nw's.y$M 7, -

Q 4

j Savings Plan, up to a maximum of 6%g.p g ~ [% % q$syy i

g 4

of the employee's earnings. The Comy y ew..

p%g*g' "

?

i pany's share of funds contributed to %. I %

6.

w #;

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 Program. flap $

Salary Administration g,

J',

1979, the Cornpany increased pension p*r benefits for LP&L retirees who retired. mM...,

C t

a p

W W~ :

prior to January 1,1978.

yeara # "p For the fifth consecutive t

1 'n..We LP&L has had the lowest expense per Oh s

?

penses among the five operating com f.$ ',

-('

customer, excluding production ex-L -

y.

panies in the Middle South System.1 C

s This not only indicates the high caliber p.WM b

of LP&L t^mployees, but also their con..,..~.

p sistently high performance record.'ItsOb G

cmployees are obviously the Com Ny,

r1 pany's greatest asset, and are the!

X N

7 reason for optimism in the years ' ' e f

,/

F ahead, despite the problems that. '

4

[b.

face the Company and the industry.. m E Projections and predictions forewaraDW.

o*

b~

of a difficult year ahead as we enter the%:yd

• Eighties. Th.e higher cost,of borrowe.d%sN.o W' ' h.

w m A

capital and inflationary price increa.ses W p H

( %g s r

will demand a conscientious effort frosnyin"" \\

WM all of us to conserve cash and to P"88?tf Q.

• N. g-3 y:

4 p@p~

for rate relief whenever and whereveu%:-

j e

gN V'

it is necessary. LP&L'has weatherede p

6-

\\

.,5 -

. - T 5*

Ly..r economic storms before, arid 1980 wiB S:May g

r s N T

/

+

be another challenge to our team effort M"M h.wmmnywmmmmmemFmamw>yperator-tmineesg b-7 and managerial skills in coping widBN eme e

adverse economic conditions.? %$r % yr W

m' J'"W 8 2 ~' ftrainin 1

' Wyfhf%M J k b.MM n ? % * >

~ W~ A,... s... m, lbr the Board of Directors y) p &%%w;w m..

., 3.

g.s.

m 4 4 s;

+

P. ~

' ;% "qmh ?e%

4, '

Wf4 ', ' }. l'%"

', map [MMM[&.E;&w'*%wyNIS( N W"w,*

• v" "?4 ':s'h )my" 5 * ' S

. G "W. $ We

["gbyygry ]$ jQ@f

~ w //w

, m r a w:,

n l

1$ NI;hMICNdh%WN ew A.,$

h.hf t&

b'

~ w, c :.

%gw Q F >! g yI]w w v <f g G Q/ Q.p.o@e[. g " ] yLy @ m[ g.

m. J.

i

.Ocy. gy g(g m

i JMQ j b,w w(

-9

.s, W

.a...

_.m us&

m

. % w,

..r m m_y.w. y..

a w a %...g

.m

<- Q,,1, W p,.%. s.z g %m p. m.. u..

. m,p.,u.m gg&g A Q e..g %o ftm yny., #

x f %p p..t p,

7

' V,.. g.. qq. n x

o N

u gg W *g W nxn t:Qpggft Ps.W

' g f/ / 4 g y

,y c

zw,I.M. Wynet.dg n, y,,.s c

.t,

,e

,g2 w iW,3, q p y ;.. g :Q.mQ t

u gp ls W kp r *.4g py oc q:;;c4 4.M i,A. ydmn)W: w +., m ;.*<*;* g 4 +v Pres,idefit

,..,,m 'Dy ps e lv-p.

e.

% tl W Ge

.W

%; ety"Q

&.a,. ;-

[

3 X2 CQ,yAnnM;qmq,4 4.e j.Qgg:qg,si+gy

.p

+w

g p, j 9 7 f q q q

: g n y g g y y Q p g g g g.;h m q m g i.

c gg q

y., Rag,p ys j.p,y g

a>

j-y y.p q

" 3:

7 g -kmmttg km mry,jw mg,gn

. : m c <;e

. m q % d;g m

M.%s *)

7 % p M.4=V Q M Mv s iby g C "rh W W n 1 K;wdl$W;dym::% = /OW War %% %.aDWkP f6 b

! r h< l MM b;::cQ

m% QM

W.

Q e

ye 4,

L.g %,#y @y m w;gh,w$p a n, n. M[ m s w m w e,

p. w n c

r

,4

,,,'A, n.g;v.4.+M,e $. g_ 3 4 g-y S g

ig y p, p; y m y. n.M.n.nJ.Q p..,cu p.A.,

pd L

gg,A:B.. c 4.,p;;,, #

3:7. 4% f V

p m.a.

2" r

-w

~<

u4iM M 9,,

a s

M fG4:!&y tamhy;4h@ f_f y;.Q 3 &, N Q...W Q f'L Q;0%

g3yf,g&

s

}lt & +h; h M h N

,7y (On

...d @ @/d y.

h; n -

ak v m. kG,%I "Vfd%

h

,gbW w Q.ydz,$A m&sa[

"'d

'<3 t

a

&ww ah n wsf pa.w b,w9;q,g,.%y,4 m y rm, - m w ~

s

+e, uu r %wy n,p ca.

~W,wm.% wy w

%, n.M.,y.c

q e a m... A y,

w.a m gay.p 9 c..

pg.m.w w<e~. m 2.

s

.,, ~

yy

,y- -

ma a w..

%W(&b,Q 9hkhhm.

[

Q $ ' 4,f.M y

hh*7M p' N

i

.fd@[Nh ' - T '(

a -

N&M: Ww

% W % }4 M 'O V % & ? M Dy S & d _

.... ~. - ~. - -

i l

l l

l

' J 4 g p.-

7

.t l

i t

I; i

F n

e

-f h.

t lJ,- Q.f,' i k

1 fv 6

1 i

)

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%

increase, 70% of net income was represented by Allowance for Funds Used During Construction Retail Energy Sales (AFUDC), a non-cash item. In 1978, AFUDC

'EnYn'*[ oIer1Y7s ($Ei e s$ overtY7s amounted to 58% of LP&L's net income,

(

Operating Revenues From Retail Customers nuienuai..

s.ess 2

siso.4 23 Commerciai...

2,721 4

e6.0 26 Operating revenues from retail customers in-i.entitai...........

it,ssa is 212.s so onernmenini.

44s is 11.7 se creased 5126 million in 1979-to 5490.9 million in kom N.9 du b N. % was a M fi$ tan'cYs$ers..

2o,sso it s4so.9 as increase. These sharply, increased operating rev-enues were primarily attributable to increased Operating Espenses energy sales to industrial customers and higher (m'i![ds) (m't![ds) $Ns*7 levels of fuel adjustment in customer service bills 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 Operating Expenses 7ues........

as.7 34.o 14 Depreciatten.................

40.9 ss.4 6

Operating expenses in 1979 totalled 5483.6 mil-Payroll Charged le Dperatieg Empenses..

27.s 24.4 la lion, an increase of 25% over the 1978 operating other...

si.s sr.4 17 expenses of 5387.1 million. Contributing primarily s4ss.s sss7.1 as 7eini..................

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-l to 538.7 million. This was an increase of 54.7 manly from mereased demand for electric service and from additional purchased power required to re-million over taxes paid in 1978, a 14% increase, place oil-fired generation.

(

Construction Costs Second Rate Increase l

The Company's construction costs in 1979

.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 g 'Y N

by LP&L in 1979 amounted to $190.2 million, an y '. '.

2, increase of $22.0 million, or 13%, over the previous year. Fuel for generation amounted to 39% of the h..

..g

~

Company's 1979 operating expenses.

l E4.

Y 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 l

to the one it had filed in December 1978 with the l

LPSC for customers under its jurisdiction. LP&L i

originally had requested 53,191,000 in additional revenue from its Ward 15 customers. As a result of i

i the LPSC ruling, the Company filed January 7,

~ b-l 1980, an amended application concerning its New E3 I@3 '

Orleans customers, decreasing its request to 51,298,000 (based on the test year of 1978), or 41%

h 5

l3

}

of the amount originally requested. This was done 3s.*s E-

- t i

to bring the rate increase for Algiers customers

\\ esti %

e, into conformity with the rate increase already 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.

First Rate Increase

--d

~

b~

On November 23, 1977, the Louisiana Public

^ ~.I N_%

Service Commission granted the Company a rate m-crease of 55 million out of the 554 million which 4

LP&L had requested in the first rate increase it I, *

• j(-

had ever filed. In addition, the LPSC ordered the entire increase to be allocated only to the Com-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 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.

i The Supreme Court upheld the district court Financing again, and also denied LP&L's request that it be 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 Waterford.1.

I.

Right-Inside the re-actor buildmg at

• 9 Haterford.1.

4

. l

/

, e

,/

?

g

s

~

f

/

/

/

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 Research and Development Company to credit or charge customers, through the 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-

. In January, citizens of Rayville voted by a ratio of cient Commercial Building programs as well as the 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 SEC for the Company to operate the Jonesboro gram and energy-saving heat pumps.

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 covered few opportunities for increased efficiencies should remam strong. Not much of 1.ouisiana's agri-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 study aimed at further improvea.ent in the use of our rates may result in a 30% drop in residential 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

(

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 EEE 1115

_.saaIIIII 12 1,

9 EIIIIII IIIIIIIIII O1.mERIIIIIII III IIII.

O 4

IIIIIIIIII-0-

0 1970 71 72 73 74 75 76 77 78 79 1970 71 72 73 74 75 76 77 78 79 Construction Expenditures Utility Plant (Millions of Dollars)

(Millions of Collars)

$300

$2200 dl 1760'::wH 240 60 440 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

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 Sterlington 7..The Electric Power South Services, Inc.,.Lionel J.

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 ter membe,.

LP&L's Board of Directors..J. M.

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 d

i E. A. Rodrigue becomes president

.The Arab embargo prompts a l

'1 M

and chief executive officer...Floyd nation wide appeal for energy con-ly W. Lewis remains chairman of the servation by President Nixon..

9 board of LP&L..LP&L is growing LP&L inaugurates its Consumer l

g g 4

at an annual rate of 10 to 12% in Energy Team..Ninemile Point 5 is

' il F

energy sales..The Con.,3any com-completed.

r 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 President Nixon resigns and is sue-elected to LP&L's Board of Direc.

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 station...The Company's Southern 51 billion mark in total plant in-eg' Control Center in Gretna is com.

vestment..LP&L's Sterlington 7

• h pleted and work is started on the is completed.. Atomic Energy Customer Service Center at the 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 l

President Nixon visits Red China, 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

,t,es. Inc., and Middle South Serv-i 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 Waterford I and 2 are completed.

begins operating the electric systems 1

'y i

LP&L cancels its plans to build the 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 Company..J.

S t. Wyatt be-our i comes LPAL presider.t and chief esecutis e officer..E. A. Rodrigue becomes chairman of the board.

s 1977 4

~-

Inflation continues to be responsible for higher fuel and energy costs.

f, g,

A tax resoll deselops in California g

over Proposition 13..LPSC finally 3

acts on LPA L's request for rate fr

""* W

~f*

D d.S

~

relief. granting the Company only h,

.r 6% of a requested $54 million and M')'

4P T ""

LPAL is forced to appeal the LPSC

) :.

- = gj ',

)7-~

decision to the courts..LP& L q

f g., +

i l

obserses its M)th anniversary with a

.S commemoratise histors of the Com-6 5,.'

' 'A Y

pany..E. A. Rodrigue retires as chairman of the board.. Gerald McLendon becomes senior vice

% y-c _._

president.. Citizens of Homer and Monroe sote to join the family of w

Customer service leader Larry Steinkomp discusses a response procedure with customer communities sersed by LP&L.

service operator Bess McGuire.

1978 The American dollar continues to l

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

agn,,40:

,,,, _s-,,,

m~ >,. ',

W..

+

n -.. n...

%~yG4.46%MMMQWXWM c ;

E,

. s %. wau ;,.d. w.1.;

yWq M r

.e;.

" ',. c ' ' ;.qv:u :

y 9.;

n g

m; s

,.. l,~. m:%.dygc.=p,' e,c. n.q@wx.WfW Y % % ".

~

p

'y i

n 6

f.N o

, w

(

U D Q M Q N y $,$ D+ E @b O H m W.

~.

MF II

%dhM%%%

RECORD OFPR RESST90!$4979%E :

.m#.

+,a m y

^

n yw.mma mm

, y y 9:g.gggr:Vw~!Wtidym -

p@wp

.f p_

3: dQ 4 -ywgmffg $q w,g--

Qd.,e..

. a i p e-

Fn

- m <I978 c1977 gpg J%y4 7 Q,N4pn

-M 7

e aug n

j.Wr.h'h k$5N bMW5$ %O -m

~~

^

, NYTA.$

hk WDF @uge2pf * "yy. pM.

1,509,000 1 #s 1 A55A00. L 1,345,000

j

- Estimated population, w

i hw. 3 m..

Electric customersyear F

Residential.MWW

$1di.. FjL h@N#g@hm..

e M?.".

443,527 m*427,938 7395,479

@ C.!J...

46,848 F*44A84 40,096 A;ytE.....

7,162 # 7,518 7,651 Commercial.CMg/y:@dCghe.M#.

yn W

L Industrial..'.. WM.Q 1.

[

e m

m.

3.173 y 3.044

- 2.770 Other........ AM,._W._'.WI;&. s.nW}1T.01.,WT * ~

Total electric custommers.M~Wfr.E;jdMEZl...'.'......

500,710 pf '.483,384 445,996 Electne operats;ag revenues %'thMg$M&$$ge@&Me.a.MigJi

&&MW%W&.~ $

Q f@W

~

h

.pf 180,364 p 46,326'.

w~

S1 124',500 0

Residential...';P,W*Tl!Mt 5

212,853 (N n 68,328 Commercial...W.,MGM MHul:$rM.hM.:. d c,.....

85,983

. 55,398 d141,803

' 114,874 Industria!.... ;'.

26..

Other....... TZS QCiM.%2ENCly@d(;N9Y

$@M.7dMW:.v. M M h......

78.276 7

-99.918 84.179 J...

Total electridaaEM M6...M d5.T.'S 557,476 Ib E456,375 " $ ~ ~ 378 i

KWH sales (millions)DMM@f4%M r.MMWN h@hTO%,951 M

F Residential........,.gnyggaa;geac.gw -,

.a 4%..

a. :

J....N 4.u.

5,996 U 5,862.

5,334 Commercial....... d ggy,~.@. p$y.m :..%.;............

Ind ust rial....................... h.. ;.g.f....... J..

2,721 L.J 2,624

2,268 Q;

11,388 n

'9485 9,028

..e..............

Other............. '. W.l. C",.7... ; '.. A. '. {... f...........

23,252 {Aa.

3.147

" 4.541 4.322 Total sales.........,. p....~. q....;... g. g.vl.p s.......

22,712

_ ;20.952 h

..,..ANMMjMMugdhh,$$g$@.6

$$h.W-Mee Res,dential customer data mo -:

Average annual useKWHEW9pT. yse i

m~

~ -

Average annual revenue per KWN,Tu?b;p?$$pd%d.W.E 13,758, gD43 EMdle 16 3

[.

g G @ b *4.iW's b,...

3.01c QW2 50s ;

- 6 2.338

%Q R1 Commercial custoNdhakh.wue+wdAverage annual use

{...

u.-* u eP am r

fNh*

hhhh

[.

f t.-

• 59,363 * ~ 60,496 57,502 Average annual revenue per KWHT,/..v. ;;WF 'f 3.16c E& w.60c 2

2.44c Peak System demand (MW),m. u gg~ yf; "y%.p xEng.............

. 4_. ' un..

w.waw

w ;n N

. W@r m., s

.di.

P "^ g^ :

,%en. 3,852 b3,515 e

,.W;. f;.s.

4,091 W

.e g,p% p' M' M y g gq y,e,gg pgg "w'

f,.

@,.4

..gg.3g, gr

.,a g

System Input (KWM. Generation.... ;MMn,g m

myg

,,,.~

• p h ;w.,",p..N*M T.

S h,2511'.X:l 2,24c 9 21 18,429

. Purchased powerJ#F y 'W w' '. P N

5.860 799M ' * :/8 m ~

' ; iTotal system imph Nk.;r.

24,289 F

%Q J

Mv.s ~w qL+141 ws y

c

..ggg

- ~gg Fu.el cost for ge...w ~.neration.

4.#m,a.. I.; S 190,226

~-

v' w.IS,117 E.,a$

J ww~

r-m

,-l. s f g; MA,a.

n

.~,n

.l

%g%%..* ?gyg@h;U Ct

+t*-

p#

[

Generating c h

4,612

$477

~w~.

-<.4 9

Q94pwaymm c

' Heat rate-BTU Per_

g hJ 10,625 p:plcN.185R.Kle,2Rt:

((.

' Gross electric plant (90%p vt.Y M/Fp

-, Mb% W..T...' S2.069,106 4 5 6792,952' $1,509,745 -

ng i

$ c "'

si t -

<fn%h N. _

• *%RTOT i:

Wh m. :.e

+ %:=

u a

$jch e -a,~ 4/s' &

Capitalization ($0000 Q*dht, Mp&

?

' Long-term debtiTM/... A fddh.m S 827,430

$ 728,748. 8 566,315

~

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

n,MS t.553.743 $e.296.749781AGS7

.t n.*

e d 0 9 't d..

n

.. w

+

M"P 7"'1**' 'N'.'M M'aN 2,329 ggg'...rM' ' J' ' ' +M129 a

p.

3 a u n._ w. men e +

.n n m m. 'n@M

- % en: m w w m,mm;n..r.v.s.-

L%

.,s m-a:5v e-y@

k.<*y',.Q /A-;, > w< b u sr rk y

s

=

~

v._

Y..

9.g vit.

.\\Q l

w w

~n

.j h M 4 h.

@pN$.~..%gdw.w/NN,. fMI %q e V*e 19 9 /4,

N* C * *

.,e W, x: y iMlf V

. w~.sme

-n v

m*.WW

.>e S s 16 4 GO c'

• @W Mm " M V.:

d i -

t w((.g;%.dy&id f..pm,um%g

[

g ss

@p6%C hw. 4 ar-Q p

4?;Q J Q.]Q

.y.ve

~ " '

• p y.

w.

II,. -,o, w% q

~m.

w s w.. +.- e% M - 2 * > ~

4

~'

sm w

W-

^.v-

. ;~<,

M%gM,mynmpxw%;W%m Mu.y

'na d

.UwsWh&q v:q. ~wn ;m y >.W.:

-un e-o x

%m

. +

..n

& } f~.

u,Ju. s.

?.

,q, 4

gn s'

s.

n.

{-.

F v w.m&. ~&...,.,%y

&p.

^

%,% p a?w@+V.m. w?'yV 'W.n h "p m.-..

fRLnqW.4Wy,Q,k&Qyy&,n.s.%w '.,,,p..

.w#.,,Yu3 a

.m u

W Y%r.GWun.vt, f.

. @lM

, fv

';'@i tiLW m..

w -

nn w,

n fyryDf Rj.;,,.

f'

', N *.

hQ y%.p*m$ pig.ln,T,$:@tR%&8.y p n m % g p ; m & Q y g',;O.

Qy&yp:.w; wn:q '

g gyp

~&.2%m@$&w&Yfdk &j(fy,%.,

& ION;%

% ~&cm, pm.. pans hQ wx&m%.,,.

. e -:; + 2 N

w.~n

.t,.

k v a w..,a...%

p s% 3 _

an.

y

~

m

.%.u w y mh jg im cu p.rywrgn ep qm.Mi%ygk M yQg g de:y:4g9,x g,ygg g.np m g~ --,--

y p gggprW,,p wy g,Q,.;.

c pg Nf k N N M [ ff hJ$hlk_,.( N. 2.h.k>M.wb.@,ggggNY i

NN 1976 1975 Y

m :g pg : ghggyMggggggy.gg.g,-.,,,, 3G f

1,225AM Q.1J87,(NB;;,/nIA50MENML315Mgt.200A00 1,304,000 1,250,000 M

i.... e h M P % 7)38,375 Mb;J5.r.WgW i.

2.. ~ 1.1.

W g% $sMrm:...MW@MS,$'Je ' ' "

356',479:',9346AN[M&3tg 4M,.

384,213 366,242 ' ~ C A

M p W.735%

30AS$ i "~

35#144.ed 33 38,632 36,166

?SA34$ M '7$glp $ $' 6,838 Ml.w \\- 4,W7MM4

^M 9th T h Sna9 Nf+'?A,306l' -

,VM 6,586 5,824

- 2.425 **

A2.313 ZM 2.347 der

- 1.950 2.634 2.4%

387,973 % 375,$63MK358A33 $q. 5,567 R... ? 3.3.+4,861.. w. m.:.e P 34 432,065 410,728 399,342,..

g gy y p:9g gyggympyg

- m.4.ew,;ygg~qdQ,ypn m

.., q. ~.

.g

,. un..ngw 4

.mppqtg g

.gg -

M,y n..p.m, y M

~

m %m m g.EsJSge,gg0@M(C.

5 93,712 5 87,819 5 85,791M i3V7833*y(73kw.

,.9

, +,

,g3GM-ggp!

7 i

i 42,505 39,789 38492 V 434AepMEM,1gsdd MS O ' k' N

L.,d R g34A33$ $,seva,y$ @ A.M, l65,264M.453A53 $7.:ey44pjM 77,278 64,386 53J05 at amtutt M een w %

i7

' gw a.w_-

wamas;g 117.782 72.850 5 264,844 ' 5 --242,753b 2%D*gtMgb R

f 5 331,277

, y u_ s~u m..g. m p e

im w m, e.<.+g g3 %m N,,a n.._c w w> a..

~

~

s.-

n wwmg@@h,;c.:c.w.p.g Aa s,u

.~

49WA%!@M8494W* E,936 ' ~

5 -

..,a'..,0.We.NMagg,ns4Jssp;%

W

%1 h.,1AE6 s; 4

,6,133 ~ n.aLS96M.w%.3A64(MS. 5,215) w e 4se 2 N H,g' 4.p%B83 a.m-l 4,597 4,346 3,956, '. 3.w 3,951 M

)

0 EU WFp 1/>71 7 9 1,%5 1,852 m

an y

w n

5,823 t 292e V4 Ate-l 8,068 6,600

• 5.57613 ' CM.585 & "4.193NM5A81:

l 6.921 6.359 6.788.

-6427 4

3,ns.

l

&&xhiM%%%hn.EQMS&Wh&MjW:,17,9F7M J15,923Sdt.t450Gw 13A l

21,551 19,157 18,548; 5 !5NNNY N dM..,,,b,,_

58 M

11,249. N,N,,1E M % ',e113'3,,,,,,'

mp,3h4/.g,3pp r,

.m'e!@h i

12,328 12.028 s.

4 w,4,.ggs' CYP 3msnm n

mQ

.2.175 L. a 1998 N n1 s 2.04c 2.02c

,. m =te,.QQpV n35.aU"..Q=G' h YA %;.Q p s w.2nkhhhh g

.. $hhjNkbh

$$tf

~?

53,115 51,940 48,447 a ' 47,906Vk 45Ad5 yr k.6%361GwnSWHMWM 2.288 -

e 2.138i V2 Q P113 C "N:

.. ~6, a.c n.L n.s.wg. gM;w.10s %W"3,Iss MW/2.34 p@q~n. e74;e%

2.16c 2.15c w w g.s rW hhk$ s%wagW3 kw9M%yws.g p

c 4

.,y g p p1

~7 c. ~y;

' re s u ";

m

.,9, g gs

,;2,M 2 W M 3,3 @k h.s 3,180 2,883 N

[

M s

a 1'ca,50,4>a%s,37M.e&yar m

-11 e.~.: -

w w

_m t

a

...m 21,541 18,931 F

5 em,Q4n'

{@

1.077 1.154 4

I b

85.134" '5 J 76,646,.n;3p.. 4 wn r

r 5 135,211

'5 m#

4,346 $,a[MMO 4,392 ygg jA ?ti V

i 10,036 l 10,198 [-

~ 19' s;

s.

1 r-

a.,.

p a.

1

,Mh}N@hl;

$1,309,439 51,172,911

$1A77

.. A G Til $g"li;6 "

- pg@g'Ngg gpy QS

~E um TN W'

5 575,809 5 514088"ys 1,68MF 5

~

4 80,776 ^

. 80,W6: s 3 "m,%'E w 9

MM76 T

~

332.725 -

307.361N.

!247. Int i

k VM.

.u. m

$ 9(rl.225 T S - 7esamt$.y

(

5 969.310 4

y

+

2,lM; n,r *

.,j n.

y y y/d

+.

MWQ a.,st@

tt

%c

~

t,'

2,1)$ '

ee o

w,.

sw wih.

e

> J, p j ;f - %' \\ ch, n

%"p&t*Qep p;.p.:

V

,':, % q'hff!

gy

%~

wg 4 W ; g& g %g;,M p

@wg

'pg km

> p'h M C&GQ %

.ff.

~, l r '

~ ng*"5 y-c g a.u%Qyyjg y r u

,, w w e y p % qL ssy n.

.n.,

, u.d T.MT+Mi Nf Q y @,Q j& ~

m m.?

p".'

-c

, i.is t/o,. M i

w 2

• )

(j$

&Q

.]3f s t QDY&

l l hhl h

!* Qd f'

e m.

m.w-

.. s +l,,,gt w a

,, n n

t g %q'vggggp' P %.6/J e

~

V

'g, L__ ____ _ _

On.

4 %

l

N,1 % T.Y p-

%).pn 0f Qly '. Lp. p n r e' J u s ?*aA na s.*c v u*

• OM s

hu m spsy,

>94 e

'A

~'

A % n w

.. n ~4 c

W h&n, vign. gen:yn.cs

-A. w

+

mM T?.Y'? EAy?U*

M

- ~

, 's&Q~ $ $ u}

&e.

py4bM?NWWm?WAa' ug d

' M $M ' ; W jM WP

_,#.2:$J O.? W G N

• W M $ $M FOIJCIE.S

SUMMARY

w,c*o.,, pW T f+p ph h- % "/:.ifv*

i - >-

lt,.

.. & MWM a:

.~u W

,h h

n k.hdb.^

j

)_

m. -

mm,. = -..

.x

.o

.- - w.-

e -

l% w.

MQ$.

p.'

d.Q. 'ufAMQ:;l M

~. -

M

,e

% A.% M M W "T ~'~

m M. m u

,M.' m -

5n 4D

'% &mmpm s

g s,

Qf

&,n m

-~

p p.,f yh.g n,;g) ' m! M "

A. System of Accommes f g@%e

. RQ MM ; hen &&

]QMW t

average de-

~.m 4 ae,p.+ M b..

l '

The accounts'of 'ttN 16%.

b'E 1-

.m accordance with'the s;ystesg,g g"7, -*

, M,,A,.^. appWperk n s

~

Man a n.

xv. m.n w%,.

a m v

m en by the lou..isiana Public Se: rdoe. -- -

r grw w which substantially conkmusMGM p' ^ edusal

%'g' pan'hp$asioisM isMontributory dys t

9 Energy Reguinorv C,

.wawsh' a5 l -i O Pjonsion costs i 5

.n T Mf%)egectivelf J4camAlmir annorbmion of

[

. ;.n

"~"

9PBjajaneenesdysuMJulorand as

-=

.~

'{@$

,'Q g f @ @

. ords['MM, " [' M $,,Y [,%

B. Hevenmer seQoosts ogy resasining periods The Comy y w

y

,o[,jshe, Cosapany Tbs

,%,N,WN.6_ e man, as to O

customers. :or s c.g le M;A*.

fesd i a _n d, m %.m.

y.

. accrued for enq. <, ',

^

r m

Mm"*"

M.

"of ihe fiscal perio'.'

d N E'u gk. d. k. N Y Y.YD9$IM'"$'N pany include fuel adjus,m.het1.RIOsi,s,',cIn$eEliMO.ut.s tnic a%g, essgky

- my fuel costs above nr belour th.e;4 dRowed i.mdpueS

~ -

r e

n.

--e</e-m u.

&;mrw~ki4%*&'4 "*.r..K MAIMwa V

to he N Bed: m Met W-e.amt e.

k-w

% v ng various rate schedules are perms, WF.%M, er MThe Costranyjoinsits parentin filing a j

required to be credited to cutamat

- u@ Pedernt income las. return indlaccame taxes are l

. T I;.

Sposqpeny im, proportion to its con ;Mp$3 In January 1979 the Cosepany,vegelved "

V

y. 't6xMW9MN.

k tion from the LPSC allokiejgsad m

l

.;4 M. n <a w;;; n p

.pany Io credit.or chang. w m

z..,

m..

w

.. e,

h...,,h

[,

adjustment c;ause.in futuse Meenketpee 3Ch

{

,....y tmder-collections of fuelcosts

. N% ~%7% 1

" ' ~

M 1

'o

-My wmpa (1

cluded m bitse rates.

. gag, senemannt.jo 'phe Mi 7

billing for fuel costs, the Congp,eny aasnaman,ad M' ~ "'are' deferred and amortized based upon the

[

ferring on its books fuel opst$g,k 7

• ' " %' gggnasy. M ' [ I lb WeI litirtdeled t

, the fuel adjustment, L

_Y nn,IMad' ass soeurai.M$

billed to customers.

y Q

p@QQQ

(,

costs, net of deferred _

pp j.

- g g g g"sg g% ~.

y 6

net ir.come in 1979 by e'

c

~-

%jf~see.

m %; r$,.u$.y -

+

r.

) y*

• %*b f

-. C/ tE d Flasit$nd jggj ;

ji t.

., Utility plant is stated

" % gy h N

W add..i6sD #.~

W-

'W

.'dir.ect~ labor an.d.,h-V' s a+

~

~

w n

w v-mn.

b Ev1Ph,@ddf

' ~' af4 M

m yW, s >.,

. @M9'eMN. )

Lp<,LW e 9 m$ h L uring constrtMan d

M A

+

-b plus._remoul costs.;-

i%

' a w<.#.1wm.Fe,c.,

rettred are".re. move'd h

- ~

1m.

. 4.%

g a.

- ~MmMWW~

s F'l.

f p g,;Cumulafed;de+rp..a g m j' M y u <

r p

3ee i

h,n.....

W M D,,

i % " ?M. property ana.gbeT

- MMiF nemithiuGides 3spensa.e_q gw Ato the tie.n.x,.a,be,.f,.r..'~

3*4 %e

.af ayua..

s... -

w

+ -

.e 4 5 l

{

'y j W h g p e

.. at rates sased o..e:

w hj hpMMpi

[{

jarimas classes,K i

yg yQggd.

gg.t ty

- ~

iO%hkwq

.x w

w u

sy l $%p%i&m ~,f L~l.

%f

%h.Q m4,m y [QQGg%gf

• &w ;W $y. W,e %

UW F

Pf a

W.M QRT@MgrJg%p.g.

p a et*

WM Np A

4 5

h)y Y,y n y y%c %a;o Q Ql FMyj[

mWW

%f MpWLW

&c >., a

- f

! c W> s,

MWx. nf.Qv.

S W v.a %..w, ge U t.

y

~pm

~o F

2 LL-. w w a-a,,g#

-w.,- w e m-m.s w m

,,,,,,m.

%...m_gg sf

.. - _,_- ~ -.,

,g.

,,,y

,y p.,

,,.g y

4.,s Wy.r;., %m;;.y. gggq.,gg,wg, y r,,

,, - -, -,., g,,

p.,m p g w,, w a,,.,,,

esig,.)., 4,,

......Ar-i, e

.g.d..,,.

4 - + v, y,.pm"4 m ;p, 3.;4;,)2,.# 4. 3 N, :.gllw. m..m.,. m

.u msg.jpw 7, c...,

Q 9 g",q R,g ;y Dft pM c ; Y. h;. %

h M,

i >m,. a 9,.

nn.1 wr Mgb$.g. g,Q &&e.

a

_w Q fL2 Q,) R,QtGrje q,kf.Q.( 'Q %!.f,y f

.}*

W K.U,

'. v[ M )',, n e g),"r.X [. f "* 3 ( Dih,.[

'.. ?.. Q f

, m.

s y..,,

m..,s m.

A' N [.EIy N * '

• e e gg *..'

9.-

- m y

4

~.e.

, &.s.rg-Ny r,1 9

.4:

gow w_ g

. ag x,a

, qg m..

,. 7, r,p. myg 4 n,.

p.

sh]. x For the years ended M 3Q979Dl 5M4MM. fib @

STATEMENTS OF INCOMEB A T s.

9 f $g 79 N78 r ed%%%C;.pgy8

.; W m%,.

4 p., y OPERATING REVENUE 5ls@DQQ7dM.,mm...aNg : q ;h.:

. dXg 9 y@qe,[.rtgyj;4.. g);;:@ s557,476 p%375 ap, 4

W F,.,.,

,n,..,,

n,

y..,

OPERATING EXPENSESiW.vw u.O '8 M., n..SRdd4, ~.,.m,, _ A, @3.3 x- /WA. ; ; N Se m

g.4 n

,..m &..m p'*uysp ppWe. AW,,.,, % _

190,226

' 168.177 4

-p o

4

.y W...M, FueI..........."m*$w.m

.s1 p>/fdM Operation:

. m. n. e.. w.. N..g.s. h.,j.c.t y,".m'....

g

'~

Av W

4 69,730 v,.,43,430 Purchased power..T.Wv 2.d.M,;M. v.C.?.m.,. a,,,n., %,. %, M,,i,. R m.2.. 140,111 C

K.

Other..

.. /s.. 4

.R. a."c. m a 4.. 3A r. ss..........

.. 38,318 g

Maintenance........m.7n d;w&.i;.E i ' :6. O-........ i....... ;....

31,269 g29,213 40.863 Rf38,389 Depreciation...... 3. :.W;.ng.; a.a w.,....v....,5.'.@#"'* ';@'"

• Amortization of pm e N,101L.

x*'

WZ4

.,. g

~

.7; L.

4,101 Taxes other 1han m* c'p'm'e,'t'a'se"s..'bd'

.CMb g*m.g"f......'~'..'y"...............,.

M.,9M g

o 22,750.w.. 19.919 - %

...M.,.;/'.~tma nt.ef r; rt.. n. Wm...w.@ s.....

Income taxes (Note 1).f.W,., h. NNf.Y;M.V. Alr. ;M.V,; u. h, -@ r.ia.

no,

483,615 R 387D65 - c,.

Total...... h..,.W, 2_

._ v..x e m.,

m,

,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, m..y. 4. y;g,y.,M p.20,8234 3;,

2,422;g Miscellaneous income.-pet @ *;g; Myp4.a. d.k;. :..4, g. %.....

4,920 g% 9h58

<g m

~

I1,751 Income taxes (Note 1)c. : 4 ;Y% Wa,i;v.%.tc.....~.9. p.3'. w :.,..&......

4

~

Total.

......,f'% m.n.# r....~. d, k,..%...............'..

47,393 0g, y.303 32

...m,, m.

..w g q w m n w,, ms wa.

4 MMpqq.cn INTEREST CHARGES: HM$$$@.

9 WWMMMg@s Interest on long-term debMAn@sd@@~Q^@ man.7.m;.EW.h O

60,2634hl.9$9 m eu r

A n

~ '

t, '

Other interest-net;T.1;LYW"@*n'r?.tv'?mww.+;m~ ~.w' '+;mm'.M"m.

10,993 6 4,M 6 " 6 ~, G C Allowance for borrodesfudds Usedilu~ inMastruction.sk!MfMdi.dh i15,131 MOO 256M&&

i r

[, m$3.744v ' '" P Total..... 9 Q.M, hpMQp,y.M. h,*h*f.%h.~ ~

56,125

?

.. ~ <.

1. n*

g wm 1-N ET I N CO M E.........n e".......~.. '...'..'..' "...~.. '... '. 4........... "..."....' S 6 5,129

..p WC m. m 9.ubv55QWig. h_h,

%m lL.%y R D.

=l.1 j%g~ M $b JMV $+wld.L d

w wwM

%M--+h e

1 h

khh

-m I A N nib.. O..S M.,~ $ M J R g 3.k h

5 M

3 N.h b

- STATEMENT $$N.,E. ;31J.M I.N$NU,.m 977 and 578 SWFVEAELC!@3.,s.,,M_m.,,%us

- ~.

w mMg.

m:r g D" V For the years ended Decemb.er y yGgc,p m g.q Q. g sg # pA gn p ypy4.g f.g.g y

pggw yg,oy&q n.p

.ppgy

...'y p.y g,g,e g umwy n s e g c;g;.g:

ym s p.ws

[

~,

ya m.cgh.

s

(

m.a4sgga g

r, p9A636%@1

[.

n.Mepw.WM6o%M S 63,292 RETAINED EARNING $i.3ansary.th Mm$$M$KddNM.,;Mdh b51!I4U$$,n ADD-Net income... M.ps,% m.hd.,M,N 65,129 DM

,v 4 4[h, h yy[qe4 v

me V.

~

nn m

p4 jg{74 128A21

, Totala. )

Q3;1 hjN f,ryh gy

)".

,.,,gy

~

+

- 6.106 a7,g g gye Dividends-c heggjg, m.m.:1 g.p-.e. A.m..s.i ggl g g g g g a g g g gjt g; g g g a

dy'm#mMQ@MC

', LCapital st'ock'espensen%.m, m$[MMpdW%%.m. u.

,a..

.M.

52,673 16,n9

--# nun w...

p,eferr,a stocgm o

.. ~ Common ~ stoc@ y tY hofm /94. T M f

M 42 S h.Q d

458 wm s.u$m A $.\\am...W.qu %u$n.uM w.n.

TQQ Mf.jpi getQ

%w wy s < ML315 w#Q, y

r m

Ag 69,880

','j [ J. Total...a... m.

r.

fg

• o y w

76.MpW; d$h%MM s+.

' Y3'.'E$kEMI ' [~Jk 7h' MfEY%$dh MWiE%Bfn[$4hp[l sM'W.m %@4%y h.

e..

m, y

L s 58,54I

' ; RETAINEDEARNU40%

-,, :.my n _. 4

> g g ggg g g y mk gmtykg

. x.._w 1

N

}

,n n n a n n n" su mia 6 no.new se.g.nsm,nW u.,sw.w_w,W@n;N+,wdcqM wW%gygg gQ ;,

v m

wm p %$yMygpM g g g g g g e.f g;g g giQ M u

gg.jgi M

q%qj y _ " vg a g &

m @ @w,g g g gu gg gg-e$,p$Qgjp[wbp$M)o;Qgy y Q g g g,a$

l[

n e

@ ha.

h.y g mm m m,,

yahfy Q

gQ t y;if J.ig 4.'

py Y

l [,

.A m.Qm;gpy 99.v ps y w

y n.. ; ; m mg ;n

> p y;+w%m 1 yp. p..

y ; y g h,a m g g w, 4,;. 9,,g y. g; w,3 y pyt x

g g

s.

x

,y g g

s r

n.wx

,m; c r,

yn. ~. u... a. m w. w..

. ;I jh

,e Q.-

-u g4g Ryffyp;Ql4gfg gg QppQw;h4 mywm ww A.h

.h w &M[f,nQ"' J m.y gj m

f.

I\\,, [h

'k 5

y g.n m +y y,' :.J.ff W hi,[m;tp n~

.,a p

a

.w

n.nn. n - ~

• v.....,v.,;w

,.c c

a

,n u m,.

..y.

k y + s q a p yn'.' k,.m ' W 1 4 * - ',n.s..am ~.; p + p. ',M,.

r vg.n,n.,w,,9.n. m,....

.. g'

. ~

g, x., w a,

m

...e.r n....

..s,.

.- n,n w.a mp

w. wn.n..w -

~

w.4 %..&,:

}

.r !d. 4/M.(,,p w ; t A, W.? G.

1,,

.c+.

o

') rg : A u g. b(W,% g w.Ar.t. p/7

-.r'k..

,e.,,..3 a.

.r.,

t f

M 47.~ L

' s Mm f.m.. ~y /

.. ; g~..

~

s.

e-n...,

ezso..

.w.

m NWl r

' ' ' ^

(

Y 4

A

['

A g

.n

.n~

n' N 4 A '.S.,

'.W.,

'.9 f.

SHE.E..TS M M.

BALANCE.197,9 an.d 1918m._f-.m. h.,

December 31, oo v.~.

~

ww.

u., y, %.

.$ n, m.m. 4w f.r,. w s.

. a n

a sano

.g.

y 7

A.v

.,. -'..~._I

...A

,] k., r *.

+

4 j

f.....

_. c.

m

. _., 5

.ei..-

.w.c m_

s

.,.._.m+_n w.

s --.

~,_

y pn m

..^V W

k A

Y g,

8 I 1-,.

..e..-

4.

A

_79. _.K.

78 O - x. ~. _..,. G.

~

~. d_ 6 ASSETS m

.q c..a c J.,

.a _.~

. (In Thousands) e,7

.o u

+ c,.,r.s,-

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.. ;......... a....... a... i............... 1,715,112 L I 475.369 t.

r 1N.13.IN.,4 -ChbTMENTS. # # O#

b

1 OTHER PROPERT v

o 36,997 p7 m 20.802,.

+ -#

-., ~ ~..

.. ~

~

~.

iated companyw.a.ty (No, te 4).m.

.% s

)

Investment in assoc.

at equi L

1 Other........................s....s................................

383 3.%

y -, m-p Total........ $..,. i.. 4.....'.'.,............................

37.379 21.160 y

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.-

, e n-

?

Not es recei vabl e......~......- '...~...'.....~....... *...... ~......... ".....

938

. 696 ~ ~-

f Accounts receivable: i M,,

o(

Customer and other-less allowance for doubtfuir t^

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 Materials and suppl.4at average, cost.".... i.. i.. a 6...,,............

10,795 p, n8#43-n;s j_

Prepayments.... i.. p. 4,, c.,w..w. g.. a,. w, s,.,.,...m.. w. n. 2. n,.,, w~

1,020,m n i,220 %w %. A_

-m r

3...

)

Other.............. rs. 4 n...w..... ;. s., J. L....T...../.., n a.k -

3.955 ? g-2923 n M.c.%.m c

m y...

o t

y

' c:n.

s

~. x.wm tan, +n w a

. r...w sw w 87.4 % F_ 154.173 ; m,;,

Total... 3.. i..%y%,. A+ sW.mt,lu,4. L.L., ~.., e,

.'..V.,._....W. ;.n...A.g m... _...

.,,.e,,.y.g.,%

m r

.q, p, i.g mi..,.,.m.. q ; p.,,,,s. p. s, a

nw

.,o t.

.~,.w.,

w s. ;,.

,.r..

-%,3 m.

- 7 t

t 3.

4

",h % V + W - l ', > h > " ' < ' J r.

.e.< dr,g

c y. % g yA V. %.

.J'.

y s, 7 Q.

-g

,.,w-w,

• 1. \\ ;s 2a.;t.O ) y<

3 d';g.u.?.

t r y./> y..

3..

3.

DE 8

p 1r %Me P J r;-

s-p'n..j.j. e.m.s,4 ;i s

I RnR

...g,xm ~ j i, f mna$,

w-78 f

e.c p.

• N.

pij

/Y v

/,g p ( \\(

p.m. 3.g+ p.. g w

gu y

Unamortized' debt expense., i pgg g3g...s...v.w., m%,~. 4 3s.g

., m n-ysag.

2,378 g,. y.

2.3541 n+g,%,.

. - e. m f 3 s go v e. 9 m v #, m

,~ y g,.,.

.s r.

-w.- i

...ws c

v

.n.v........

r Extraordinary property to.enes.?'wJJ. 46.a.. fe',Mi li;. r.,..v.

. C.L. o...

' e ~4.101 ' N N n

'Totat.;..s.-.k.n,. +

W.q w ~

n m

w.

w 2.378 q 4.455 7 m,,p+. u m e q m.. a.4...o.m...sN.W.6.n...J..L.,,.WQ,. W.w M...pgs.w u pggg

..n.....=...v.-..

r n G

r g

n m. m, w..

n ~,a w,,o m x. U.,,- mmw3..

1-

- p g' 5

3 n

y 3.;

4 v..

. r m'[#.c 6

.'.'.F"y

.*,'g'.,'

'B s

' t, k ' 6 o'

s

,,,,,m,. y es e.m a g.

e, a w y

h

,,i-f -

Y g[

.157 ;

4,-

E

......,7. %.M..M...(

,ib, l,.N...,..17.,5

[t'

-TOTA' LQ.l.. Q*

~

..i..........p.,ag-,.ytg

$.1.5 3

p

,, '..y.

e %,%q s N..%Q }9@-l ( N5:,9,QWP1*l'QMTT~1 -!QQ- )A c,s

.p,,p y!

/. A.

N,',dk'l &. t % i Q..,e % ? N N; O,

),

p Nt 4 ; %w A ne s

'a

^

4

(

x, s

.a-t w*

e r

-u ra *-MA h.h*J); ['L K 7L h,~,d %.[* hY t..~ w.

u.,

.ha v.~,

y q~.*

unn. 3

.,-a

-t.

p* y / Am$g ut.w$. ny.n. ~

3*4 r v.o.m.u w p o n.,s.hd,4, M. g,phg e

z 3.p-

, [.S, s ty h,N p

f(",',f.d y'd+;

s. (;,. p hN

~

,.~, n w, ;pj 8 % mp,

y F.. m.,s,6,.w n g ;,y m :n g g ;.. @n g$ y% 9.n A % g

,u y-

. ic

~7 Q>N, a ep,:py}gf.,QW; ygg,i ff;;y%,gg w,..

e**

w7 w.g;%g,

.e pg a w e m?-p g

. e

..n g,_y?pi fv %gg dy D:,Q))S e

.y&.pgg W

q

,& K ggg.g i z,; sng y

4 g g y.n y }., y&; w mycin.g A u a a,>>h 5

Qyn p

m,, qps...,N,O f)n.DNIN. S$y.syu. #@, g e,fg q gg,,, q:g.r h.M.L%,9..g + w. ~ m x..

[a #

' ry.~y n NN N;NRAMM.MMA

1. b. (d hi$!s,,. " O,[Y ' $.YQ, Y:

Y 7

w s, : x. '..

4 4

4. s V

.~

...w,

s...,r u e,,.

a m

wo

.u c,J '.,7:4(.y 9.-,

~.

~

n f usL d,g

-,e

~f m,e n, s g'%.-

g 4y r y.9% 3 9,~4.

.. t,r, g -

-f - u 4

,g; n,

m / qr M t..

9,. g 4 q

g' u

i%

,r qt, a J. 7

-t c6:%. m e; L W$bg?pp y ?- z.y l ; p g Qpp y ty.y a k. /

>?

,'" ^ r y% QM.mqq%g.% }.p w._p,y w~.ap~,gu,g

> y

- N w. M.g wi. > c

.3-

. ~,.. N '.1.. r.,g., '

,g,-f

... s,.,

~ e< y

~

.. w.a x t. -.

g i *-

wn pi e n vge s,

x.:-

a r

l N d

s m c _'dE*%;{A[.

f, Ff jYM5Efy.k.h)N

.; m J tq.pp

,,..,y, c 4 a.6 i

' ; dh kl.

. ? ?.i di f) hf f' t g< m yy, _v.w,p c m{um,' E

'i

'Uy 8

f g,m,,*

5 s

1 m :- yppy dy.muy m,gw / n a,

y3, +ygm,,s.,ys.t W*

hyI j g.

f 17,'g

. y,-

l p.

y, A.y[ph l}

ep y

p n x.y ?

4

'f [

... ~ ~

w l *

- Q u.

[,

6 w{ w,.m..n:mya,,qcewM,,, "@,w n.. j: m. ~ n;v. w x d2 a

e 5 g M

.(

3 e.

m a<-

1 is;e

~

pr

, \\r

.,j g z. d;& % y-nmlt.yp3y.7

. n,f,, g.

>.eo j ;n 4

.n,; e,",

,., y w. n.

43

.yo, mm..o

.l-4 m e

G.u m, ', ' &rm i

,4 ;.,g J

.c....; v,, a m@. a Q

,v3y..

pggyx;g;

(..+

w;

. 4 (). 3 4

p

\\

s var.

. 9 m e.., pww,, m.

o.

m,,

g

- b 's ~

7l (N)e

/

I

'b,'.*

., (I.#{ '

9.C ll

[

t

1. . r i ; s : a. e xm.n,, a.sv,...s,-

'., 11 f/./' h

(

p

{,.(,

,,f.

.m

. o. r. ~-a, I,ss o.

u n-w

{

g I,h

.,.).

('

{

m ww.~rw e m.,.,~+>

me

.6wm w.;~m%ee s., em-w*.-

. o_

.,.m. e.mg,4 mmeW

.e w.

u m am.%.,..

~s24y ;*um

..a o

W P ph W. P1:.-w &pha*.p.~,,.W ~,g&.a..v@ v% fW M

"'~4 w

....... w r.

. v:-

4 md:

ern..~.%4_h,..- %

4 Ae.&*.++.+: @.e,

.m.

L p W W m,4..g%. w.i M %-.., W,:,k.M wlyn,onys M

n. m g*

s.

m.,

y n.e,Q M.

W ':" :

b*T*

c

_+

c V.Lg M, m.ne x% q u

' M.~

t p

u.:.vw r. a w. O w. -q +

.m.n.

e nQ 2 M Q Q h(tJ Q $ & Q W M r,.W. M i.~ %. ~.se_% e c

..*i? 4 e,s.h,,. % e.. w*ig%W %

,c

$0

.. s_ b.w y 'm.e '.,w, m.ys,.%p< w.,L.

,.1.w, w" #,..

V.

.w r

m r

Soy -sWQ. e,Y,

+ - - -

s NW a

+*

4y.e.e4s m. A.,.,;. -.

r. ' '. <,,. ' -

-r. A..% N,,Q.gm,,.

s r..

.ns y y u

-g

,y m el % gg a g y, y N;b,

m w-e myyc :qg.6W%.;py=c

. s.# %:fd h

b

-% %,m 5bMihh h C D,if & &

v n.nm n y.m. A, n & ~,m.,.

.y,.pw c -

>~

y

.,..a wh, y. :

3 c.

w

,,. m.,n. -., % v. w...~.-

s

..m e. m.m-g

.m s

m:..

n.,

c n.

.o

~. w,

.sef f

. x&.u,%,1,@y * '.m&s.% p,,.w' we. n.., u 4 mM.g. me.,u.

• % rr..:e%w m:s * '* '. r." -w %.' K+y+ j%,w. yA r," ". -

Mq n-, %x o

g a

• p ~>

ed s @w wm t

v v.

fl nw.

.g v4n.wg.:n..e v.a.w4;A%w.gy,wyv @..

-,.c

@m..c h.,,

w.

o..

,. A. gx. m.c

.,q&, ;>.$,w%. p+7

. oc,

sc.ww

.v e p,

r t

< n.n n

1. w>w.. %y 4;,59%~!ML.=

.. m..

-,~,~

1 c.

,m. r.-

. g.

d. m; M p m p.:::.c.a a: %y y.:MN

~s

-...~,,.m w @ :i,,o%... w. w.ma d. e

~

J.. -m...

m 1,w~~

4 u,

c g.=,+..-

., 2 4..~.

a ~m m, 4,,.%~

..a-s..,.

.y nur & r e e r~,,

4

.v gs

-so,,.~,,e.

W

. say.

4 w.

u.w. %qC'MM., 4~ w.cy%%yp. u

1. ~

n.

+..

y h,p.bagu.,4,.

c.M... s w

o# -:.-

1. .~

LIABIllTIES

n..pw. d.s..,..

., s.. -.,..,. p e m... m. n.,e 79 M,, F8. m<*'5.dMt

,..e w., s na + p t s. < '

• m - m. ew h m

..a 9-

. hv c seg.c h =

..s.

s N..

ww c

+

.+

.L

.. %.-a.% p.~.# ~.% a m w 9 9:a.t.w:.% %m w e, g w.e aW M.r.s

..e~ W X.

s-

-u.

P. m..e. 4.~#... eq n : m. o, s9 h,...~%u.d,.e.w+ - u._m.

Wc w.

pMyi g

G

..m.

m-

% ~

- m m

e

,,.. N %.v..M.v g

n,-

w.w gfwp

."'s d'.

bMNW CAPITAL.!ZATION:

o,

- y

<n f

Common stock. no per value; authorised.1979-,

1976-100/100,0tX) tares: - - D'- 2.MMd$%.w N.;;;WA mN#N N. wTME'.

(

i

.y

. m. 7 O

150,000,000 shares:

b 1979-65.140,000 shares; 1978-- 53.776,000 eares diih.-EEM (#,*.D w. 8 428,900 JB8,9W M" Retained earnings (Note 3).....!.'. f... e.v. ;... a n...M.... 4.:........

58.541 M3.292 j

c

~.

m

m.,

Total common shareholder's equity..;;;;..'a ;i; /.. /......W. ;g..n....

487,441 $.487.192 Y J-i l

g. u(1.,.809 A+a@.4.,

l a

38). 7.W. A.: %. L ~...

145,882 w, B 92,990 I,

Preferred stock and pr.e. m..in.en.., w.ithou. t Preferred stock and i=- * -

' fund m

c.18). a..

w-

. I_ong-term debt (page 19)m #.9, 8"**.wkh h.

.~.

v..., gm. L,,. E'_

~ W

[.,

wwp m.v., ~.

......,....~.....m....~.n..a..m.......

827.430, y 1.553.743 < M~. - ~.w;..

t.

.. n, ~ n ~ mn.s n.- n +.~.,+..wn.,

c

-v

. a.4.

749 g.wg Total......................................., ;.......... ; y 2 4..

r,

~.a..

., ; v, n. y.

[%),y/w,3%%,e,

. w._

.r'. m' %, ' i

.w. m,,.t J.<.i ',/.

i CURRENT LIABII ITIES:

..., 1 ;>

,[

Currently maturing long-term debt......... i....'............... :....I. l...

11.871 1.983 Notes payable (Note 2):

, ww m

% % s.e, #

- w rw-+ y %

e M

32,375 WF/5&Ghi b.

Banks............v.. as d;r.r u iss d,'/E rt.ri d,i &.. ic; h e M..r,v. h

~ M $85; + h~t =

14 Commercial paper.. q.. A..,.o., e g,. pu,.g. Og.www & s~..

.v

.e:

w..~,~

Accounts payablc.

"'"#.* ~. *"m* m.~.'*'".'c~y~,'*r.~'",e",~-e"

~

%( [7,"J W M @ f

~

~

h Associated companies..DT.7; M %@b.@.t.'d$,."g2Mi$.

~22,902 36,698 W,2ER My 13,159 d@HAs7@3w

Customer deposits..... Z...Z.W.Cu.'NS.D.MM@/.9;2 ;M.

Other............. dt. C. d.M

.My f

.;.T. K.K.C.D.C d.

f Ta x es accrued?................... s.. t.. n. ;.. ;.. r.. r. ;d.. ;. h.2...

3,459 NYm1 A85.

b Accumulated deferred income tases (Noes D./.Y.u.m.~;.saib N2.w;.$d.J...

7,289 QM--MMzL

~

mm

. o.. o. e. v.. a, s. 0 19,825 Jg727 e gg.o

, + a.

~ w. ~ ~

interest accrued...,...,

m 2

. o.,.,,, m. n.# 4 p-Q, w,y g. W w & M. g

.\\. q m., g -

N.

.~

. of (v. g.,u.p...g o., f,.,. o,.7; ~ 1. ;.

6,156 j,;g-, p.

Other..............,. o.,..m, p,%..ri,>J.y T A W:

D..dCndS declared.. o. :,

Wi m

~g i(,

.y n

ra.

,uw

\\

% %.,c.

. a r m a w. s w.ve. g s.,s.

634 m

wm.e7 s

- m a.. a a..s i...,t. % e..m. j &.,4.

y.. vL ~q v. s

<r u ; a. qe ggmm.

Ag. ~wu

'i s

n%

154.368

w; e

a :3y vm..,.,.

aw m

'IDia1........... y,..,

.,y4.e. m....e y.

y;G 4 : ". %M;y. ~ p..y. 4 +.....m 4 w W 'G W M.

g

.r.

c 4a I

m,. du.~n,Q pyjag DEFERRED CREDITS:@g,g,@$m u&M.9.S@#m...yW.?W r A;..,g.

n;, g?p W Q V V."y' a

i w.%m o

_i A

y<

g wA

, i mo

-i Accumulated deferred locome ta. zes. 04ses O.W. r; 91,221 2

c.

p

+,.~ n, w g.,,$.,s,m. y~w,,yg<

28,382

,,.. a g, Accumulated deferred.mves n '

Other.. s c... ;....W.M+ m,tameng tes..

f.

.n g.a 7.729 9

Wag'

~ %,rie p %a r

• g

.. W W n.,.( p e....~.u o.ent.d127.332 J

.agg,g,7k;pd @" % M. w y4 y

kp * :

s.

m RESERVES...... c. /c.i_Mn, w%m

.ig., y< x. e w1;e m %.

am r A..m

. u.y mp z

M p.m w~.WM.p5.,,M,5%.,e n. 3. e p)@,Mi. @,y.'.

6,922 pM i

,f t

uq%. m:p, 7 mvweg ' w.g 4>gc

, 7.q@ ud a $ 14 WQpy;t.

m

+<%

4 ssvru m< " $

CNMITMENTS AND@eapf,,.

p

.why" w, s

w w

e 8 WW W

., TMN

- (h i

M w

AL C4

?Ys&

W

.;Ws%jw%,.

b n,r m

+

.,.n

. m4 bF w'

r s r.

4 9

L.

3 f,,

fe;

'gg.c..g.

81.842.365 -

(

+

,-g j

\\

See Notes to Ph===dat Sm; a_ w.%s a,

~..s n

n m m..x. n +

p qW n.

w n

n a

14e

{W. ~

U.'..

dK w*

. M. 4.; @ n k ggs nq n;

3 pg, g,.g, pny n.

t g;g.qm g sk dp, n:

w $g gA49g,,

y,

7 wwwg W

g%y a

g

-m N y p w w n e:

jko$w y)Mp5%qg:W,} W%

% e.

yC qqy n4

(

A ;., g (nW:%.

nu Y

~

,f

,t fy j

S

• Mi

,y.QQAMp.P

. mity ?

k

,W g. G, 91 u

e

.A wa

%%1

, o g y.

,,ggvy

,,, gi 4

pygg y jff gy,p; jp, j,., J.,ni, hh

~g,4, m

.m e

. t f yg,9

.,, ew m %

,eq 4 gu ph ai%PMypmM y w m~p e 'na w e b:m.w

q - -

F M %q%f@n Q+'m,Ep a mg. e M #

M

.~>

gw

%yk % % _V O zt u g.MW i; M,TM gd M ^ $ $p Q JNy ' M ~ M O,.4 %

su

-)

Tyy 4 4M+y

' ~ f"10 '

Qv

W]fjg4R gh@Q ;c

Y M c W W ()

Wr:

J W g w,:egggfpMIC % '" -

@Q@WMSCllEDd:

1 2M$yRW'WNW%s DF PREFERRED STOCKNW.r M@%g4qqpp@~

~

. %i%

^

f2 d Ww

.- a 1

tr W Q 4 W W y % v p y h q m % m w $ b 0 $ ? h h)M

• M f wecWM Sp

$YYbNhY h

f h W:S fW 8 : * ~ Carmm ph % ) 6 m. ^ ~ ^'* %fW " @My@.o$gy.WpWMM.y)M

@F, q

79

$W % wfQQ@Qm$.m@.h,;W 'm;h W:PMQW ypm

. 4 4 S 6 b ate 9 4@4q g@jINI ys[&%

Call Price ps qw 2,<

@sDpjig~resOutstandiC PerShare

,g @"N.

.~

a NE MMMA M M M 5 % h V y Ein d

.,;%M ::4&M;&W.:G.%.

~ - -

K.oQR. 8Q;ualuhvey)0('pgyaloe,' authorized,4.500.000 shares. MgMpWM@@gW(3N '

g.

snu4 mfp.,,

,d. s g' g#

a._ a m,MSMt b l c

w'N,

, m.4[ %96MG/kh_und:

.o

-wy Mum 1 60 51M.25

,um %g,000 Z

'g e.

h y p.........,.

..............c..

o.

oo

,m.2i

.z...

r

,uapoo00 Wwggs.epw.eh.. mew.m.&.e.

m os s.<m(.23;o00 io4.is I$.al o&p w%w%?y&... ~~.......

.a~,.=-

.... -... ~~ ~. ~r -

MU* b < 80A00 103 00 M

M40 N

m#g M4% W i num w 60400 n02.92

@+% @M @%p 3H p d%g m <m @M 70E00

,um h 108.% - a vim W @ W MfWiG.~d M ?.MWi.

00Dn am10 m M

Q MW p % awgs %:mmgenp._newamG m m M W.

.......... - -... s... -.. a..

mum g.200p00 im.o4 i WaggN.56%qWI.phmnw...........n.........-.. /. s.

mum p 100,000 107.42 wum 7 300#00 1 u.44 M f.L..>..w.r.a.n m..J a... m.i.........

w u m h % ne MI$ @W h 7edd/144%Qpb MW N1 113.98

g e d H u!48 M.7 %......

,s,;, g,osooO gy..

N%98Mhh hhk nei authorized,12900,000 shares h h m m* ku d ondi w m a n n u w@ P ww u

m n

.n.

w..............:...c......u w ;4 ? w - m m s p Temw %.With.

s,u ggy. rm em w pt LA wmqp.

kyk

g., M,w3 gu $9.pngeeMbm m!b3Me h.m.&&.W d.W M W12,..imW g.

.a mum m m pn 2a.2s WW 322%

3,g h p.m #m m g.u.

,,; m y 4 a.

wuw m%

ur

.m..

ne oW p MMW%w -..a.As..=M4.vsw Wu b 4Mhawww w m a g w w m q wd mk a g%g w%ym h.anngm.+%wdudwh.am.C-mnm..wkak m#

wq W

ga an nw9&v~

m

~gagw,,n.nwn e

,w l.u w,w x

w m yhy &p&p,.n m&

mmm n - a*pf$n$sf&+ am&n&w&

gp

'h Ni$g& Yy-N fh

&s W

2 wwg n

ck andprensum 7

s. 14 w 2

,ggpq paie;gwg SeWgg A& T.y W@N;pe%,yltlioutgnthsft.(gm 3 pW

mmkg.Wm.hpg

gpd 44Q wp wpMaw97g 34 MN p

A, pWWyg g n %yiy# A G M W y xw g

pw@w%n pFW ph gd d

Mm w w % p M g m w n g p @pm Q

R qA s m:n ym%@m%mpw m%g e

g wumM om wgm 92mo M ap%cg e,h g%a p%p e g m @; &ny w % w&

aa tou egenntgpugp s eyMp%pg Qwm)% g s

w w r% %.m y#%w%s gg$ct&d n;e W pm g w

g?gy&q.h b &c$ &

hans $n

.9( d t h hg Y.

C kWYQ ' *9y m

$4w&viaenaag[weea gnesh M%fhh@p-:$$.,

5 f

f&

hdc

$ N!h Id 5MMWhhMNNhkMM RMt@e 984 4

% [ h ba *iT @* b m $g $g dw@ D %

~ M M M@ g@$

% a y).f

.MMNM k

M M

^

N YW

$ w p %

y#n # @p @& b

$m 5R q ve

$ w @& e i

$y%MMkW M$ @%nsdMMWF v

s 4 4 @p W % f b

< gdd &Q@w$w% w& w& p %

%%ma a@u@wh M $.t8,& &e?m$ m?

MW y

e gpa:$ppum%n Wpddgg4hn@pem.4bg%y:ym9w h M h #wMu dp@W MAcyqP qan%w%g 4pA m

M% g g&n%

w 9g4+9uQWW Hpfr)15yg Q

y NWQ Q

?

gM p up %s p3 g

Mgggk dds w

..,..- e n. e...< n ~.s.,.-

. n.,,,. n.. n...

.n-n,.,me n

V..,

re4 e w w?.h,' &:-.s.Y +p Y.: w uOs$kU$.S,k?W

..o

$rd h

.. ~..

~~..

u xm E,,

- w wen' Yhkh.' m',5*

4A n es 1. m&.OYhik wn&'$

hW.

• ^

• t y 4 n

e.xm m' v> ~

s~

u mcn s.

.w.s. a / w" r ?,...

. n w e d.b-

%s,?

' i-

,c

.s?.ce e,.

g3

- 1

- +m+NW g y 'sa'

+c c.:

~

u.

. wm. ',

g

• W+p, *, *m%.n m -

~

~

u-

. >. ~

i_

14 M,b-r*

u(f.

s fc 1

.a,g 9

6 s * :

W*

?

v V. s ' '

c. p.., s V.1,,

<r ys

's sw:

-aqv

,.3 "A v _. % > A

~

^

e>

1

, c --.~

~n,

~

.s L.

,s..,.

..n<,.

8e b.

.., >, f w.g

+

f r i s'~ ['

QjTg[

F.. -

SCHEDUIFS OF IDNG-TERM DEBTU ', r.v{f A

• w+yy

, y'.",. : "

f,,,

, n,+. n..x.;ww. f. w.

.. ~ v

, w u vn..

m.

.x +..

w w n.w,,...

r.

... ~.. ;. n.

e n, a,w,,.m.

a...

.r

..: m u.

m. r m, a

.p uem,a.a

,;~+g +=.M...;??. :

~p

.e., W v. u.:

a,

• w- 'w

~

. m,~ _'.;.'. 9,< -~ % ;

~

s-a c a

e-

- -.m

~

' ' 'U' A - aM @#

79 b..70 mST MORIG GE BONDS:

r

' C h'n, ~., q _ u. a*T' e+W,"E. N ^ 7*H Pladusmands) s.: l

.. : 3 p'. C . : J 'm- - 4

a

., ' v s,.

. n 3 g.,... -

.+"w.W.*'.3 a

10 r,.,"w+ Y *J %-e e

c r

v a,. w.,.~w....

s

.v-

..u.,+.

~.. ~..

~ ~ +

m:..

r

.: +.

v m-

,' S..enes.....Due.+.

e ;'; ;.s' :;.

Me.

a%

e 192.............;y;;,,,.- G;f,%

r nx.

c...

.. o 3

a.-

..........%. 4 W...;,./.'..

h..

c...

- b(N.$ ' 9.900 3%-

9gy gggg.....................

..~.........~.................

....3 go,ggy, p 50,000 9%%., { 1983............. y... v.

50JMMi y.'

50,000 3 %% ~ '.1964........'............ '. J.. 2 a...... r.... ;.f.. v. i..

d..M.M i

.l.

A

................ m.....v.n. ~..a,. J,.e.1.C.. G g#-+,..

18.(MM) 6..c18h00 3,

e

, g,g,,, g,N"75.000 g

g.. m g.,

.... -.. ~.. ~........

m y

s, i.

y

• .(

?W

,.,.,.,.....",..C...'....'..%

p -,

. 10%% ; s.; 19H9............ <.......;.. z.. a. '..?. ; c,.... u.e c. i. v..

45JMMI M

~

r 'x?.s

.O.(NM) p? " N,000 g

g gg.....

...,.....,...,(

1994..e,.rq.,.

4.w,. 4,, e.

r*. ** <* * = * * * >r. ~.

.+

,,,',o.

4%%w'7v

. m g +:

3.5.(M M),%u* 25400. - m %,.

S J '.M.. :.a. m..p !.:,M,,+;f.f. cQ,..,...

7,4.. 45.. v yme...

sa..r..% w

,p s.

m....

... H.,..ea 1 9.. W..

'.h

.y..yy }'d 4

r(,

k,GC.

L;Q

-M

^'*';

......r %. Q

...m<

3ggM #.g gg.a. 1

...J..J..E..,....s.s.%. 3. i.o. M......M...M... ~.,a *o..*.@..

16.(MMI D".. 16,000 '

p C

6%% [, [ 1997 f., ;................ W M ; M d. Pt.', EC6..h* '...

IN,(MMi, 18.000 1996.'.*..."..'........'*....i..#..'.".-'..~..'"."..,.'.*.....*..*......'.

.rN(M M, fr*35.000 7%% $2C g

a, 7

9%%

1999..u......

'..f ;...t.S......c..'..

25.(MM) p;. 25,000

't 9%%

2000....

..'........,.........k..........

20,(M N) 20.000 25,(MM) $.,n.25,000 7%%

2001.

2..,........,........... '.,....,-.. M. a. 1. _. J '.(....,...~,,.

d 25,000 7%%.+,...

s

. t...

1n w

.e..

4......... -...v....<...

....r.~c.

.s

... -.~

m.g.gN gy w

w.

_7%%$.,!2002.*g,.*..*4.........., n"..#. y.a...... "... 4..... ". w".-. +..

45.(MM) pg", 45.000,

's-(MM) M. 25.000 '

W N

p

g.. L, ?.pg.shg.,

M

- 8%.

2003.. i................

g g q' 2004....................q, y?..F....

g

...A..c...,.:........

4.s.(M MI -

45 M r

i h...

8%%~,

2006., :..... '.....=.....'...,1 '.*W....N..... C..*m. '<M. w.c. i*....W....,..

40.(M M) P '40.000 '.

e#

n t::

y 4...m..... w c - w: ~ y ~

g,,,,

+

c.

.p n

4 13h%..m.

200.9.............,......,.;... c..;.

..v.....,..'.,

55JM_MID o..

,M.,

.....),ey.

3 %,p &J; s

. -.a*c.

.=e.

?

.e

+

%g$ffMM5" ;h.

g

$ d.k M, Total first mortgage bonds (annu'al sinking'fEndMye yth;,

g,

Mh Q$6s d e % m,* m@ W

• W Q

, n..f: - of property a,d, ditio.n.s. at the ra. te. of :16'1%.of 7. s - -

d such requirements amount to 56,720,000 (or.g.1915)# n,..,s.e o,

ge-o

.g.

' " *3

.WW23;f 3,

.w.

772.(MMI

)Qn:

q 681.9tM) s A p _y e git,JGQWy%y%,D&& GdW.%;Mf(gggg;g,3 fMw7.pQgg t

R....AM g).qs y OTi & M W W C3wiknfW V.

g M i h M [C W W $ % n. M h l e t.

8

c. MJiscieslI.'aMdi@ minElpalNrssbsshyQ$hM%M k%

h 1981-2004 and.@$n.6.cy. l9ngM./n., hy#/,

SW

.e ;1.o.%%-8% due sedaily, 1

p p.

, %.m. 4 m..o. u r 39,473 4

~

m a.% '

p ;

_,.. t.her o gat.-

,,. e..., ;.~.3.,:n.....y} % r. s fa v t' &~ 3A n ts,,6 %e..

.m P4. 4%.3 w

y '.n 4,.yPc4'1stio.i, b.t.

maso... ~. m.. r o -

g

'lmO* 4 a. A * &*y1 % -

'4

.~m-4 stnal r. ~, ~ % w % devenuetoad Aw Mtr y

n contrd and indu.u i g.

H

, +7

.o k(C6i 9 f.ioNigatio'es. 6A058% duc 1988-2009 (na o[W,b.0061$eS ff;Ihg[e[.X7aW hv%.Aa M@$

=

h3 5i

?

trastees at December 31,1W9; 51,632,000 at December St.19781.. u.N...

14 % 7 NF.368 f ^ W ' '

5 1.799 OW d '.

nambrtizedjremium'and discobat on1dniteim4ebt';.S Q'..Ni.

990 a _.

h v

n w ra c? -

x w = ?p1u{MdfiL M..,!.s n3;~C. E.5 p s < a., A y~

u T A m'. - TOTAk.,f 2 6 -?..!.',W, h..',. [,7 2' 827 430 j S' 728.746 a, X +.c a l'; ; ;.'.a,J; ~7; gJ

===2==b

v..y

m. n. p,. %w'.wfj m ysh.m m apny.a, m. w ',

a s

ro.

g. m-gm y..

u.

4m e 4.s,w.me v m.. nx m,9 m m m.,....., g,k, 4 ;:s.

wwsy,yWp @a%p,, WM m y,b x..

. +

%.b.,

d.a c

t Q;

m t

%w m. t.. y w94 m o m o A m e x n wg s

%g $ Q M. p @p y,: m t p y

1. $ G.3%ff%m@q~m py a

a.w%

Ns eW v>m-Mr.M% W;f.qig6%m &Q % @j f g, WW.:

&j$W.Yhd&,Mybh$W}c%W*'Q:

Mfqhtyh r y,.;;fe. 1.y f ? % k W $ ] &w, m w$ W Y

-QbQ f

QQL a s w d - o w % j. % $ W &;f,. m g $y,p;f &,3 y; y g y Q E

NW$

& Sint N e 5 & Y ~ &,s M.& &y % w$_ - :

%. w$ &w,,h, m p &pA A g w u w % c;! m m

%. e r r ww 5

f$(hyY.h?hf. h5Nkh+f-Wf ehi W

y>k

.;4.. m n w &,. g % - % s c,e.a W.. m, n; W lo..[na n s

• m4

, E. w: m..,g

..g n o4

~

r, k.i;& MiY @:,$g n W N,m A %

hkth F W &p h 4 y e& n&;%r e v 3 fr

r. e +.

h m

ann,n&%M t&4WiW'W% MD:P w y.n&*5m NWi; SNOy.t%mwnD,i'r Y > U.%w.U'q c Nd*c.'DT M b e hN

@m a m m. Mgd. w W.w s m p W W W m,b.'! d.d @(9 m.c

/n m

2, w

e.+.

I J.h;.h 3 Ei. hw& s'dh

@3k[f, p k'

,k.

' ['N/.D

NN

"' M x:mmm%4W[by.n p%sq@'?

s un WWe %m m y ;:&v MD

.h ga

!f.Q.N(Nll(f, n. n.w %mw.m m~ +

,m' %,;,&ss s&,. e,Af f. Y~'j f..;(;;f,m wm u c.W.,:klly-Q,wlplUh&f;,;.it m p

• W W bw - u..

y w.nhun9a k.;a ;.V,s

.u M2..

c n

s n

f.

kl*f f

~lw n,* $.l'; '

y 9.. o. +i w s s a ?q 4. n. q,y 4 n,%m n g+y. g+ p y:. m, 9 7. e9 9,:w j;w. ;, e, f.., -

r

.;,yw

>%.w,. a? ? k.

. o

.m

.q mcs ;

gy s

's y *exy QR a> %

w, Q, I

~ p,'.

y w $ y y, k.s', Q [g.h ','.w h

^8

• 4 ;.m amy 9' M #y,.

~ :p.w

.. ? '

a 7 Lnv s

UI ^ ~ I ;b y!L'ADg.; fff *y r**7 i wil sy*>(. O.i 4 yN 4 I..

. f jei hY S. " k j j. Mh % p

?

'*1 S '

5.+

N "I8 4 9 c [t*,4,,e[H' " Mjp'e Ml"M '[. ' g;l ', 7" U

, p' m.*.E.N '4..:w:,..L. p";p it.',+% e L # p @{y.s:g % e%*4 N* M.f Oq pp T-jii, ' ; o M '.>

i

. L'

+

4 Q. f s t. < +y m.sM '?s v w s.sg; %* 3 -

,f

,q.Ry %W ~ aN) Qt l,. if+y's,>.Mc:

• a m, ;g

• w^ f 4 ;. ~%. wp m Wl*Q tay: p g&y'*k ;yA 9%y.M,-@g (sa mlf p d f s

-w

-,m h

,"n,.. ng

,m A

,g&g'a d..x w h-faf ?g $

p u o 4 +.

m s a y p m.: m y( 'n?m'f6ys+

w<

• 5

-1 e

en K gr

-).*

+y

~A I

g

.c p,c jQgg ugiyMA;m y:.M u m m ny,e. N ;;&

w

.p_

}>

. ~,L,..,,a.,...

\\

3 n.. a; ;_

l n

w_,

--..,:+,.,.,U4 E

~.

. w.

. n.

add k4b4 h 4 V.ifW.'t #

\\

h NN.

W m W% "n. W.*, W K.n,s'.

l Ww m '

J 4 4,. j w /..% ".

~.Gli 1

$ J, a e. p A

%& gyp % g

{

4T!*% *V l3$M u

s. ?

. m _.nmW

+

1. $ M %m v w m W,,W. A @,.y n 2? r e <

o a ;gy,.

-- - 4Q N M *"

q-T~v'.

s y

m IN W[ k d Q % & Q M, &. p.:QOWWGMW * '

M ~

,.yn yA J T";* ' '

WR ~ %p

..L : >

4;pr e%W.,4.d4@pM.w@%ywp Me e -*

y s. > m,-

6 g6 M A

.S M. M. j g ' 1, n

'.,.. '. ~.

4.

3.tM, ~ h.

hw,n,@r n.,% wt,1.% c, ~-..3. u. o/ s y ; i, g.y,. a.; y. s

., y v.

n-A.

-, pr44

.I php g

J s*

k v Aa-w y. w.V

..ys

- r,.

W b %, e.We.

p 3.g A b.2 s

g 4

,s y,

- s_ m. m p h,; ~w h~ e m ; m a: w' h,4 9 g $, _.' s, W., $ h p.yJg*

r

~p. v'f.J*

.,*m,+.

w w;R J

,,._ _..%,%as.,a p; n_m. m.a w,

. _, L,, n.;. M.y. _~a _.a.,a. ~.

%6

',E gyff w

.n;.

.w%wn.~q.

.,A

.m

,u. u..,,o

_..-,n,

n. m nw

,s.n r%,

m g yy

-~

.. y. ~...m.w

+ n&s@ k.h?.d.1::N j,/,u.,lm&, $,.';C.{,Y' Y r.

, - ~ ~m. ~.

~..m,w,s

~

m..w,, e ww a

_Y $,.~,&. g$.W:N&,.a.,,M& &.$f'u y W

... +. 8. %~

8 1

c w

y,.

s mphd7.g$Mh~,.M,mv ay.,a. m iN M 4M Mf.,M.n..

+,e,Q M5f[ i

.. m.

n

- NWM eesse'J8 '

[,'

79,D,a-

, %@g*g:P r m@ v.,A w-1 P*H+ m b

~ w m

-3.y e.m

., o m., l, # y /.,, Sty. y.,.,W. 4u.. -

@g w 6,.

6dypsn Kw J.

q,,

h.w ds) -

mM,.

FWM;r.WW,e

. u$PQ@Ag, @g@g%, _;@m.T,.F.TWWgg;QN.,,'

t,W CQ g. 4,,

,m, W

p W E.o.A.* p.wg 4

A

,r o

,m sc m

.,,.h,

,o,.x p g > tpy NgNAJR..rg..rw.,, M,.,

" ' > W;,hg;. 3..

a m

v y

, y.

w3y.

,9 u w n e

~ %6K; 1

.g e -

. an. e 6. u.

,.e m %.,.(,.,e. w. s. f.s,,4.,9 w,m;.. ~.. ~. -.w,u, m. u.m..

.. ;.... u".. y..... :... -......... S 65,129 g,53,744

a..

w y

. e w

m.u gw %.

g

.sp.........,..a..m.n..,. L..e.s.n. m.e

."..W(.w..r.a a.7.;

n.

mg a s s y

n n

. n....,+..n 40,863 %. 38.389 Ipodipte.tases and inNprm,wwM@a m.,.m$_a.,;._e..,-.,..

y pc

+.c 4,101 m,,,.t 4.101.. -

.m v-p lenses.i w-w

. u..

mt u MSM hg 4 sax credh lk4 ' c

's

(

L e

10,8%,Ve 4,915 w-,gMyd Mied % M..

.%..a..,....K' 72;MT. /M.C. 2.'."....... _[45,853)I$ 131 F19) w w..

.e3

--esL m....,.......... -

............. ~........ -........ -

N W'"

mMreM.@.

75,136 4.4%sWAfsWWW6. w w.m W?.v

~"2 W4- @ @%. n 4. -

. n.&q:WymWWfWWE

'W

~*

2

.~

.++s~

wel.C._... 4 r.... a..s...,.. ;,:ww:.44.MMMMEk, W wn........... h.

(16,749h :;a.(6,106) k

.44G w

,- % g, w y m....m.c w a m. m.-....e.,a..... "..

..1........

(52.67.3) ? (42.194)

@m w a w; n e.$w.... 4o Wst&w w w.. w.

r 4..

.p y,.w

-, s. sw s r m > w.,s.

% PP.%w% ~ feMsietelmedin tsuminess. 4. d. A,mwsa:p e

Aw

,,. nmp * <*'

...r..s..;.

4..

......c............

5,714 e 19,768 QyMi*d 7[ %2Sn s w< q ases in.,

.w...~i

~ u

. w, - s ing c8P m1 Weluding h erm y

i d

b'? [ -

M.

".^ ' " ' JR4turing IOQg40rm deIDL M 7

%iW t..e

<,s

< /d%%M M

b8Mdam)55..N. h,,e.

(7,136) J,,3.187 Mn compemyuumh or.nesmmW.,.%. &, m.e.h...

included'in,c.urre. nt

- i h,780.=;M b

~,,

1 r

-,7 m m.,t,..

(16,195) w.

s1.p&r%g;g

~

e

m.,ymM$u w~. m e m.....m......g,.n..m..... n.we.... ~......

9y9 wO. -..

v.

• 4..m. (. '. :. 3we/g

.s,.. %.n-,g.. c.. -c,e c eqq.,,,,gg.

.g;O. m 4..

A n

. mv.r. e... a.,.y,yr. y. rye.. #.4.. a...... e......e..Ap jp;,

.5

1. 4e#a4 pw

%un.e g.

w

........ ( 16,638 )

s 27.101

n w y

3.

s A

W % Q Q y g g d W & c- & e m d O w %g, p h 4 gg qq;$g.g.Wg

@M., %(,d.

w...'. m..;.~.m..e.. m..,.. u..u...

4..............

75,000 f,~50,000 g

p em

+

~+w wq w.-

3..

4 ", ".. t

. np.u v.a. e.A. w~ %,. +:.,a.:,;_ m...

n.%;......a,,....

n e

\\

, a wax.

128,063 w ~,.

.,t

< u

• 4 :%.e.+.,.m.

w w

4 y

s

+

4 4

~ g y.q ygm ~

w >.%v e m m..s. m.. %.,a;g.v.w.u.:,5.

M)ww' N'-

f f

I Nk WM,n[h% w w m,N f

000 mmw pa e

we-1 m.w a.m 1

una ~

w; wr.

m NNm v..a w m.M m m. Y

~ * -

No..qc.sTayy 4.;.q st..J'. RfD.' g. -. 9. *

• M. W' g gg" 'N;;

..E. 4..

A

~

6 d a' i

h3

~

(kygQ -

.p::.

yip

.wg

..w

+ ;w 4.

.p..

. hO

@ 9 7 &gs d4 *C<fG T e

, '4@hw&

q% (59'715)

W34M

. W,.h"M*;A'T3 4%

+a.3(,;f* 2s2.927 i

?yJ.m+;*%.v&.y. v, v:%. w:n & m,b. ;.2.-

y

?,:$.4,4w.

ML.

e%K m

.,"a M

r un "6 p J [ % 8236,289

- gggM n

m h

.~m.J. s Wa % gag,y.;g ;. A,n.n-2 W

,n,y,A,.

e w

y e m;; %u w.G.+.,.

ar y

mk ws

-.- a n.,,

GM,pm g%c&.e..e m:

w

& e,. a m m /-

w, w# a m

'i 4

n%u.w. + pw' t'rW,; r 5 ya..

Dry p

1. t.M,WFM, o

.s. p. $234,493 e.. c.

4 M,.N.W,...

N

- R 1.7 %

p.M.y w.

A 3

m

=.g

&M n'

$236,289 4

MMyt.

4 g*%c %qWT; ou 3 M

r-

> v '56 Aw-o 4n.n. %p,

.A, %(

w%; n.n

• .,p.a

.e,

.m 4

%Q*tes sw

' Wr'Q;@is?W ^^

, wm;

'.. W m UW b, ihWY,Y x.-

s

.. uum Sh ' 7vwn&WW &)Wf5WVf% ? - ~

- m W.

g Q'~

3 % m % gd g e,:,g g,. @ g.e U; n o f

• 4, m@Q@%':@&)%q g

egMc ha Qp W QQ,Q.jy;e,,

9~%f@RW;W %Qf a. bgM a%:M

. n,..a

~.. +

p g

a mm x q..

k.

tQ t.QlQq@

y $,P%f,y MApm w-.-

9 L-n-h.. M %

uv

s..

u$q&_g}%m%gg p

im :

MM.&S Q

n -

1+$

nw

.O +

y yf, ' %

7

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 commitment and/or with re a commercial paper dealer providing for short-term borrow.

to the Company outstandm,spect to t,he amount ofitsloans ings of up to 5150,000,000 (5120,000,000 in 1978). Accounts g, but m no case does any

[

are maintained with the Louisiana lending banks and, compensatmg balance or the total of such compensatmg although immaterial balances in some of these accounts balances so required exceed 20%. The amount of unused t

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 the amounts of bank loans outstanding. Each of the non-rates (determined by dividing applicable mterest expense i

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:

21

--y

.4

^./_.___

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 %

11.5%

Commercial paper.

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 operating subsidiaries of Middle South Utilities, Inc. SFI by MSE in December 1979 to 1982 and 1985 from 1981 and 1984. respectively. Under certain circumstances, payments operates on a non-profit basis in planning and implementing may be required to be made commencing December 31, programs for the procurement of fuel supplies for the 1982 if the first unit of the Grand Gulf Plant has not been generating units of these operating companies;its costs are completed by that date. The Company's liability under primarily recovered through charges for fuel delivered.

these arrangements is not prospectively determmable.

To finance, in part, its fuel supply arrangements, SFl has entered into various loan agreements with the SFI On June 1,1978, the Company sold its interest in a 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.

E*

in connection with certain financing arra igements by SFI 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 tzat.hange Comm,ssion for the purpose of obtammg aut or System operating companies,is obligated under arran8e-ion to sell 15,152,000 shares of common stock, no par 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 l

parent, under rate schedules filed with the Federal Energy in 1978. Operating expenses include fuel cost and purchased Regulatory Commission. In addition, the Company purchases power charges irom affiliates totalling $158,788,000 in 1979 i

fuel from System Fuels, Inc.

and 5119,408,000 in 1978.

22

W y

4

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 Operating income.

13,692 4,195 28.368 23.055 r'

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.

l 23 t

}

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

. 5357.178 5422,402 5453,906 5507,758 5557,476 Operating Revenues..............

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 by applying the HandylWI) to the cost of Public Utility Construction Costs O 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 P ant. Since the depreciation on this plant is limited to the l

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.

K. M. Brumfield

' Tex R. Kilpatrick, West Monroe, Louisiana 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.

Afiddle South Utilities. Inc.

9, p, pege 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 Vice President-Governmentaland Public Affairs AgriculturalInterests and Assistant Secretary J. M. Wyatt, New Orleans, Louisiana W. H. Talbot President of the Company Secretary and Controller N. J. Briley

^##'##### #"###7 i Member of Audit Committee 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.

a w

l i

1 i

l l

s l

Q a

t '% y -

..: A *,

,/

.x 4

.. < >, m..

l

,A

~

g os

~. *

.[

. 4,% _;f, _

i l

4,.

ss l

N_,, e.7 s,g * ' x..

a.

_. s g,

<r.

, a

. N,: S 2

_s

- _,t I

- - W..

< v,..

j 3-A..

,,4.s.

. '.,, g'}. O

's 4

- v r.

6' s,

.y' ' '

g A

'e y ;'

g,.

r,.*

.:.m

1. '[ $sk,'-ii.

~

9:

~

3, T

s

'a's D

t l

Q

{C

?i

[

' - u;

%-7 1

. em r*

-Q jY f5* Og?

t.

> 7,.

y A.

A f

W:rrrf g ; >.;.

.w c 1

4 a

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

l i

l t

1 i

i I

l 11 SM-4'00

..