ML20133B132
| ML20133B132 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 12/26/1996 |
| From: | Diprofio W NORTH ATLANTIC ENERGY SERVICE CORP. (NAESCO) |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| Shared Package | |
| ML20133B135 | List: |
| References | |
| NYN-96086, NUDOCS 9701030008 | |
| Download: ML20133B132 (28) | |
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North Nonh Adande Energ Senice Corporation P.O. Box 300 t\ Atlaritic Seahreet.sii03874 I
(603) 474-9521 The Northeast Utilities System
,e December 26,1996 Docket 50-443 l NYN-96086 l
1 United States Nuclear Regulatory Commission Attention: Document Control Desk Washington,DC 20555 Seabrook Station Guarantees of Pavments of Deferred Premiums Pursuant to 10 CFR 140.21(e), North Atlantic Energy Service Corporation (North Atlantic), on behalf of the licensees named in Facility Operating License NPF-86, provides herewith, the Annual Reports for 1995 listed below to demonstrate the collective ability of the licensees to meet their obligation for payment of deferred premiums.
1 Annual Reports for 1995 (containing certified financial statements) for the following:
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- Northeast Utilities (for North Atlantic Energy Corporation and Connecticut Light and Power) l
- The United Illuminating Company {
e Massachusetts Municipal Wholesale Electric Company
. New England Power Company e Commonwealth Energy System (for subsidiary Canal Electric Company) e Montaup Electric Company
. New llampshire Electric Cooperative, Inc.
. Taunton Municipal Lighting Plant
. Hudson Light and Power Department e Great Bay Power Corporation In addition, the Agreement of Joint Ownership, Construction and Operation of New Hampshire Nuclear Units, dated May 1,1973 as amerided, and specifically the provisions of Paragraph 10.1, as amended by the Eighteenth Amendment, dated March 14,1986, is incorporated by reference.
The enclosed annual reports are also submitted pursuant to 10 CFR 50.71(b).
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S100C 9701030000 961226 PDR ADOCK 05000443 7 PDR
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Unitid States Nucle:r Regulatory Commission NYN 96086/P gs two i
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Should you have any questions regarding this matter, please contact Mr. Anthony M. Callendrello, j Licensing Manager,(603) 773-7751. -
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Very truly yours,
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NORTil ATL IC ENERGY RVICE CORP. j ff AIbiPr4Eo' / ,f/cs ft Station Director
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cc without enclosures:
I II. J. Mil'er, Region Administrator A. W. De Agazio, Sr. Project Manager J. B. Macdonald, NRC Senior Resident inspector i
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MASSACHUSETTS MUNICIPAL WHOLESALE !
ELECTRIC COMPANY I FINANCIAL STATEMENTS WITH l SUPPLEMENTARY INFORMATION i DECEMBER 31,1995,1994 AND 1993 )
WITH INDEPENDENT AUDITORS' REPORT THEREON l i
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MASSACHUSETTS MUNICIPAL WHOLESAT E 1
ELECTRIC COMPANY FINANCIAL STATEMENTS WITH SUPPI EMENTARY INFORMATION DECEMBER 31.1995.1994 AND 1993 t
TABLE OF CONTENTS 1
' P.agn 1
Independent Auditors' Report 4
- Financial Statements Statements of Financial Position 2 I
Statements of Operations 3 Statements of Cash Flows 4 Notes to Financial Statements 5
)i Supplementary Schedules Independent Auditors' Report on Supplementary Information 20 Schedule I - Project Statements of Financial Position 21 Schedule II - Project Statements of Operations 22 Schedule III - Project Statements of Cash Flows 23 4
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NhPeat Marwick LLP 99 High street Telephone 617 9881000 Telef ax 617 988 0800 Beston. MA 02110-2371 INDEPENDENT AUDITORS' REPORT The Board of Directors Massachusetts Municipal Wholesale Electric Company:
I We have audited the accompanying statements o' financial position of Massachusetts Municipal Wholesale Electric Company (a Massachusetts public corporation) as of December 31, 1995,1994 and 1993 and the related statements of operations and cash flows for the years then ended. These fmancial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial statements based on our audits. ,
1 We conducted our audits in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether i the financial statements are free of material misstatement. An audit includes examining, on a test i basis, evidence supporting the amounts and disclosures in the fimancial statements. An e.udit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Massachusetts Municipal Wholesale Electric Company as of December 31,1995,1994 and 1993, and the results of its operations and its cash flows for the years then ended in conformity with generaliy accepted accounting principles.
h ?N March 15,1996 Cr2 L .
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MASSACHUSET'I S MUNICIPAL WHOT F9 AT _E FI FCTRIC COMPANY STATEMENTS OF FINANCIA_L POSITION DECEMBER 31.1995.1994 AND 1993 (In Thousands)
ASSETS 1991 129.4 1201 Electric Plant
$ 1,234,808 $ 1,233,829 $ 1,233,845 in Service (Note 4)
(327,452) (285,104) (243,440)
Accumulated Depreciation 907,349 948,725 990,405 13,814 14,731 19,553 Nuclear Fuel- Net of Amonization 921,163 963,456 1,009,958 Total Electric Plant 202,096 182,830 191,099 Special Funds (Notes 2 and 7)
Current Assets 1,259 989 1,013 Cash and Temporary Investments (Note 7) 8,044 5,027 9,361 Accounts Receivable 5,561 5,104 7,813 1 Unbilled Revenues 13,815 15,597 14,846 Inventories 6,018 7,413 7,636 Prepaid Expenses 34,697 34,130 40,669 Total Current Assets 236,793 216,960 231,768 Total Special Funds and Current Assets Deferred Chuges Amounts Recoverable Under Terms of the 213,572 214,217 189,808 Power Sales Agreements (Note 2)
Unamonized Debt Discount and Expenses 32,739 35,817 39,340 Nuclear Decommissioning Trusts (Note 8) 7,763 6,110 4,683 6,167 4,253 2,966 Other 260,241 260,397 236,797 5 1,418,197 $ 1.440,813_ $ 1,478,523 LIARTLTTTES Ieng-Term Debt
$ 1,303,465 $ 1,341,215 $ 1,374,605 Bot.ds Payable (Note 3 and 8)
Current Liabilities Current Maturities ofleng-Term Debt (Note 3 and 8) 37,750 36,420 33,175
- - 64 Notes Payable (Note 3) 8,622 8,525 8,332 Accounts Payable 10,596 10,969 11,734 Accrued Expenses 49,001 36,479 44,786 Member and Panicipant Advances and Reserves 105,969 92,393 98,091 8,763 7,205 5,827 Deferred Credits Commitments and Contingencies (Note 6)
$ 1,418,197 $ 1,440,813 $ 1,478,523 The accompanying notes are an integral part of these financial statements.
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MASSACHUSETTS MUNICIPAL WHOT E9 AT F FT FCTRIC COMPANY STATEMENTS OF OPERATIONS YEARS ENDED DECEMRFR 31.1995.1994 AND 1993 (In Thousands) 1921 1914 1921 Revenues (Note 2) $ 212,173 $ 233,910 $ 248,630 Interest Income 13,780 11,139 11,083 Total Revenues and Interest Income $ 225,953 $ 245,049 $ _259,713 Operating and Service Expenses:
Fuel Used in Electric Generation $ 24,129 $ 16,359 $ 20,062 Purchased Power 40,398 61,940 74,134 Other Operating 28,741 35,500 29,451 Maintenance 9,561 9,746 10,470 Depreciation 44,492 44,366 44,187 Taxes Other Than Income 6,348 5,139 6,076 153,669 173,050 184,380 Interest Expense:
Interest Charges 76,732 81,489 89,742 Interest Charged to Projects During Construction (Note 2) (104) (36) (169) 76,628 81,453 89,573 Tot d Operating Costs and Interest Expense 230,297 254,503 273,953 Cost of Advance Refunding - Net (Note 3) -
12,902 43,857 Gain on Cancelled Units - Net (Note 4) (156) (6) (601)
(156) 12,896 43,256 Increase in Amounts Recoverable Under the Power Sales Agreements due to Excess of Expenses over Revenues (Note 2) (4,188) (22,350) (57,496)
$ 225,953 $ 245,049 $ 259,713 The accompanying notes are an integral pan of these financial statements.
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f MASSACHUSETTS MUNICIPAT_ WHOT FSAT .F FT FCTRIC COMPANY STATEMENTS OF C ASH FLOWS YEARE ENDED DECEMBER 31.1995.1994 AND 1993, (In Thousands) 1995 199A 1991 Cash flows from operating activities:
$ 225,953 $ 245,049 $ 259,713 Total Revenues and Interest income (230,141) (267,399) (317,209)
Total Costs and Expenses, net Adjustments to arrive at net cash provided by operating activities:
45,677 45,387 45,112 l Depreciation and Decommissioning '
10,633 9,922 14,517 Amortization 10,288 )
Write off of Debt Discount and Expenses - 10,440 Change in current assets and liabilities: l (3,017) 4,334 (3,198)
Accounts Receivable (457) 2,709 678 Unbilled Revenues 1,782 (751) 415 Inventories 1,395 223 (984)
Prepaid Expenses 97 193 (2,749)
Accounts Payable
' (2,246) (2,024) 4,720 Accrued Expenses ano otner Member and Participant Advances 12,522 (8,307) 2,194 and Reserves 39,776 13,497 Net cash provided by operating activities _ 62,198 Cash flows from investing activities:
Constniction Expenditures and Purchases of (9,693) (4,281) (10,312) i Nuclear Fuel I hierest Charged to Projects During Constru: tion (104) (36) (169)
(19,266) 8,269 5,160 Net (Increase) Decrease in Special Funds 4,833 (2,059) -
Change in net Unrealized Gain (Loss) on Special Funds (1,654) (1,427) (1,259)
Decommissioning Trust Payments, net 384 425 620 Other (5,960)
(25,500) 891 Net cash provided by (used for) investing activities Cash flows from financing activities:
- 432,380 444,290 Proceeds from Sale of Bonds (8) (10,482) (13,064)
Payment for Bond Issue Costs (36,420) (30,525) (29,165)
Payments for Principal of Long-Term Debt
- (432,000) (412,155)
Payment for Defcasance of Bonds (64) (49)
Change in Notes Payable (36,428) (40,691) (10,143)
Net cash used for financing activities Net increase (decrease) in cash and temporary 270 (24) (2,606) investments 3,619 989 1,013 Cash and Temporary Investments at Beginning of Year
$ 1,259_ $ 989 $ 1._013, Cash and Temporary Investments at End of Year Cash paid during the year for interest
$ 73.317 $ 77.579 $ 86.035 (Net of amount capitahzed as shown above) ne accompanying notes are an integral part of these financial statements.
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MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY i NOTES TO FINANCIAL STATEMENTS DECEMBER 31.1995.1994 AND 1993 (1) Nature of Onerations The Massachusetts Municipal Wholesale Electric Company (hBfWEC) is a public ;
corporation and a political subdivision of the Commonwealth of Massachusetts formed to be a joint action agency and develop a bulk power supply for its member Massachusetts municipal electric systems. MMWEC is authorized to construct, own, or purchase ownership interests in, and to issue revenue bonds to finance, electric facilities (Projects) secured by revenues derived from Power Sales Agreements (PSAs) with its members and other utilities. The power supply program consists of power j purchase arrangements, power brokering services, planning and f'mancial services, and the PSAs relating to generating facilities built and operated by MMWEC and other regional utilities. !
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A Massachusetts city or town having a municipal electric department, authorized by majority vote of the city or town, may become a member by applying for admission to MMWEC and i agreeing to comply with the terms and conditions of membership as the MMWEC By-Laws may require. As of December 31,1995, twenty-seven Massachusetts municipal electric departments were members.
(2) Significant Accounting Policies MMWEC presents its financial statements in accordance with generally accepted accounting principles as promulgated by the Financial Accounting Standards Board which requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses. Actual results could differ from those estimates.
Interest Charged to Proiects During Construction MMWEC capitalizes interest as an element of the cost of electric plant and nuclear fuel in process. A corresponding amount is reflected as a reduction of interest expense. The amount of interest capitalized is based on the cost of debt, including amortization of debt discount and expenses, related to each Project, net of investment gains and losses and interest income derived from unexpended Project funds.
Nuclear Fuel Nuclear fuel, net of amortization, includes MMWEC's ownership interest of fuel in use, in stock and in process for Millstone Unit 3 and Seabrook Station. The cost of nuclear fuel is amortized to Fuel Used in Electric Generation based on the relationship of energy produced in the current period to total expected energy production for fuel in the reactor. A provision for fuel disposal costs is included in Fuel Used in Electric Generation based upon disposal contracts with the Department of Energy (DOE). In addition, Fuel Used in Electric Oneration includes the annual assessment, under the Energy Policy Act of 1992, for the cost of decontamination and decommissioning
MASSACHUSETTS MUNICIPAL WHOLESM ;
ELECTRIC COMPANY l NOTES TO FINANCIAL STATEMENTS DECEMBER 31.1995.1994 AND 1993 l (2) Sionificant Accounting Policies (continued) l Nuclear Fuel (continued) of uranium enrichment plants operated by the DOE. Billings from the DOE will occur over the next 12 l years. At December 31, 1995, MMWEC's share of Millstone Unit 3 and Seabrook Station unbilled ,
assessments was $453,000 and $705,000, respectively. The amounts are included in Other Deferred l Charges and Deferred Credits on the Statement,s of Financial Position.
4 Snecial Funds :
The composition of Special Funds is as follows: l I
1995 199_4 1921 !
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EtInd (In Thousands) l Bond Fund Interest, Principal and Retirement Account to pay principal and interest on bouds S 21,939 $ 20,741 S 19,573 ;
j i Bond Fund Reserve Account set at the maximum annual interest obligation to make up any l deficiencies in the Bond Fund Interest, l Principal and Retirement Account 81,331 77,405 88,166 l Reserve and Contingency Fund to make up deficiencies in the Bond Fund and pay for renewals and extraordinary costs 17,787 17,927 17,140
- Revence Fund to receive revenues and disburse
' 60,605 50,323 47,461 them to other funds Working Capital Funds to maintain funds to cover 20,/34 16,434 18,759 operating expenses Total Special Funds 1202.096 S182.830 $191.099 The Special Funds, other than certain Working Capital Funds, are restricted as to their I use by the General Bond Resolution (GBR), which also prescribes investment thereof. Investments are I limited to direct obligations of, or obligations the principal of and interest on which are unconditionally guaranteed by the United States, certificates or receipts representing direct ownership of future interest l or principal payments on direct obligations of, or obligations where the principal of, and interest are guaranteed by the United States, certain federal government agency securities, new housing authority l
bonds issued by public agencies or municipalities, tax-exempt obligations rated in the three highest rating categories or shares of investment companies which solely invest in such obligations, time deposits and certificates of deposits issued by banks insured by the Federal Deposit Insurance Corporation (FDIC) which deposits are either fully insured by the FDIC, collateralized by government securities or are issued by a carty whose long-term unsecured debt is rated in one of the three highest l
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. 1' MASSACHUSETTS MUNICIPAL WHOLESALE l ELECTRIC COMPANY NOTES TO FINANCIAL STATEMENTS DECEMBER 31.1995.1994 AND 1493 (2) Significant Accounting Policies (continued)
Snecial Funds (continued) long-term rating categories, and repurchase agreements provided that a specific written repurchase l l
agreement governs the transaction and the security underlying the repurchase agreement is held by an j
independent third party. Also, included are bonds or other obligations of any state of the United States l
or any agency or local government unit of a state which have been advance refunded and are not l callable, domestic dollar denominator money market mutual funds rated in the two highest rating categories, panicipation units in the combined investments fund created under Massachusetts laws for l l
the purposes of investment by local governments, and shares of investment companies which are authorized to invest in assets or securities comprised of government securities, agency securities, new l housing bonds, tax-exempt bonds, and repurchase agreements noted above. Certain Special Funds held l in trust under Power Purchase Agreements, working capital arrangements and agency contracts not i governed by the GBR are more restricted as to which of the aforementioned ' w vestments can be purchased.
l Cash and Temocrary Investments Certain cash and temporary investment amounts used for power purchases and working l capital requirements of MMWEC are not governed by the GBR. In addition to the investment l
securities delineated in the GBR, MMWEC invests in repurchase agreements with banks where MMWEC has established accounts.
l inventories Fuel oil and spare parts inventory are recorded and accounted for by the average cost method. At December 31,1995,1994 and 1993, fuel oil inventory was valued at $2.9, 55.1 and 54.2 ,
nullion, and spare parts inventory amounted to $10.9, $10.5 and S10.6 million, respectively.
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Revenues and Unbilled Revenues J Revenues include electric sales for resale provided from MMWEC's operat'ng units and power purchases and billings for administrative and general services provided to MMWEC's Service I Participants. These and additional details of revenues are as follows:
! 1994 1991 Revenues 1995 (In Thousands) l
- $208,091 5229,586 5243,817 Electric sales for resale 2,813 2,082 2,324 Service 2.000 i 2.000 2.000 PSNH Settlement $248.630
$212.173 5233.910 i Total Revenues m --
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MASSACHUSETTS MUNICIPAL WHOLESALE l ELECTRIC COMPANY NOTES TO FTNANCIAL STATEMENTS DECEMBER 31.1995.1994 AND 1993 (2)
Significant Accounting Po1Mes (continued)
Revenues and Unbilled Revenues (continued)
MMWEC bills its members for costs incurred in providing services and purchased
! power obtained on their behalf under terms of the Service Agreement and Power Purchase Agreements.
' Service revenues are recorded as the expenses are incurred. Amounts which are not yet billed are l I
included in Unbilled Revenues on the Statements of Financial Position.
Amounts Recoverable Under Terms of the Power Sales Acreements I Billings to Project Participants are designed to recover costs in accordance with the PSAs. The billings are structured on a Project-by-Project basis to provide for debt service, operating funds and reserve requirements. Expenses are reflected in the Statements of Operations in accordance with generally accepted accounting principles. The timing difference between amounts billed versus
' expensed is charged or credited to Amounts Recoverable Under Terms of the PSAs. Amounts will be recovered through future billings or an expense will be recognized to offset credit balances. The i
l principal differences cost of refunding, include billing for certain interest, depreciation, fuelgain reserves, net unrealized amortization, costs asso or loss on securities available for sale and other costs. An increase in Amounts Recoverable Under Terms of the PSAs is primarily caused by recognition of depreciation expense in excess of bond principal payments related to a Project and the cost of refinancing programs. Individual Projects have a cumulative deferral of costs which total $217.6, $220.3 and S201.4 million and Projects have cumulative billings in excess of costs l which total $4.0, 56.1 and $11.6 million at December 31,1995,1994 and 1993, respectively. These amounts have been netted in the Statements of Financial Position.
The December 31,1995 and 1994 balances of $213.6 and 5214.2 million, respectively, reflects the Statements of Operations net increase of S4.2 and $22.4 million for the years then ended and the change in net unrealized gain (loss) on securities available for sale of $4.8 and ($2.0) million for 1995 and 1994, respectively.
Nuclear Decommissioning Tmsts MMWEC maintains external trust funds, as promulgated by Nuclear Regulatory Commission and state regulations, to provide for the decommissioning activities of Millstone Unit 3
- and Seabrook Station. The December 31,1995 Millstone Unit 3 and Seabrook Station balances of $4.2 and $3.6 million, respectively, are stated at cost and are included as part of the Deferred Charges and Deferred Credits on the Statements of Financial Position. MMWEC's share of the estimated reserve requirement for the prompt dismantling and removal of the Millstone Unit 3 and Seabrook Station, at the expiration of their original operating licenses in 2025 and 2026, is $23 and $50 million, respectively.
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i MASSACHUSETTS MUNICIPAL WHOLES ALE ELECTRIC COMPANY i NOTES TO FINANCIAL STATEMENTS DECEMBER 31.1995.1994 AND 1993 l
(2) Significant Accounting Policies (continued)
Deoreciation Electric plant in service is depreciated using the straight-line method. The aggregate l
annual provisions for depreciation for 1995,1994 and 1993 averaged 4% of the original cost of !
depreciable property.
t Interest Rate Protection Aereement ,
Premiums paid for purchase of an Interest Rate Protection Agreement are amortized to j Unamortized premiums are included in Other interest' expense over the term of the agreement. 1 Deferred Charges in the Statements of Financial Position.
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(3) Ddt Power Supniv System Revenue Bonds To finance the ownership interests in electric generating facilities under its GBR, .
l MhBVEC issued Power Supply System Revenue Bonds (Bonds). The Bonds are secured under the GBR by a pledge of the revenues derived by MMWEC under the terms of the PSAs and from the Pursuant to the PSAs, each ownership and operation of the Projects in its power supply system.
Project Participant is obligated to pay its share of the actual costs relating to the generating u planned, under construction or in operation. The Project Participants' obligations are not conti upon the completion or operational status of the units. l MMWEC financings, other than obligations maturing within one year, require Massachusetts Department cf Public Utilities' authorization. In 1994 and 1993, MMWEC issued
$432.4 and $444.3 million of refunding bonds, respectively. The proceeds of the 1994 Series bond when combined with $9.8 million from the Bond Fund Reserve Account and Bond Retirement Account, were utilized to defease 5432 million of the 1977 Series A and B bonds and ponions of the 1992 Seri The A,1992 Series B,1992 Series D,1992 Series E,1993 Series A and 1994 Series B bonds.
proceeds of the 1993 Series bonds, when combined with $14.5 million from the Bond Fund Account and Bond Fund Principal Account, were utilized to defease $412.2 million of the 1976 Se A bonds and ponions of the 1978 Series A,1979 Series A and 1987 Series A bonds. The proceed from the refunding bonds and the available funds have been deposited in irrevocable escrow accounts and used to purchase direct obligations of the United States Government in an amount sufficient the debt service requirements of tb refunded bonds dirough the redemption dates. The aggregate balances of defeased debt at December 31,1995,1394 and 1993 was $285.2, 5285.2 and $296 million, respectively.
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. s MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY NOTES TO FINANCIAL STATEMENTS DECEMBER 31.1995.1994 AND 1993
.(3) DJi1 (continued)
Power Sunniv System Revenue Bonds (continued)
The net cost of the 1994 and 1993 refundings equaled $12.9 and $43.9 million, net of
$2.7 and $2.8 million of expenses, respectively. MMWEC's 1994 and 1993 refinancing programs in effect reduced the aggregate debt service payments by $107.9 and $146.6 million over the remaining life of the bonds and yielded an economic gain (difference between the present values of the old and ,
new debt service payments) of 545.9 and 565.5 million, respectively.
Bonds Payable consists of serial, term and variable-rate bonds and are comprised of the 4 following issues. )
Net Interest December 31.
Issuc Cost 1993 1914 .193 3 (
l (In Thousands) 1977 Series A 6.4% S -
S - S 144,240 b 1977 Series B 6.1 % - -
74,325 1978 Series A 6.8 % - -
1,085 1984 Series A 11.0 % - -
800 1985 Series B 13.5 % -
185 525 [
1987 Series A 8.9 % 9,720 10,250 10,730 i 1992 Series A 7.0 % 98,905 100,875 104,910 1992 Series B 7.0 % 196,600 201,410 322,665 1992 Series C 6.9 % 59,585 60,345 61,070 i 1992 Series D 6.3 % 85,045 87,190 104,690 l 1992 Series E 6.0 % 108,195 115,745 140,050 1993 Series A 5.3% 379.515 390,275 441,255 1993 Series B 5.9 % 370 930 1,435 1994 Series A 5.3 % 115,175 115,640 -
1994 Series B 5.1 % 190,505 197,190 -
1994 Series C Variable 97.600 97.600 -
Bonds Payable 1,341,215 1,377,635 1,407,780 Less: Current Maturities ._ (37.750) (36.420) (33.175)
Total Long-Term Debt Sj .303.465 $1.341.215 $1.374.605 The serial and term bonds are generally subject to optional redemption approximately ten years after the issue date, at 103 % of the principal amount, descending periodically thereafter to 100%.
The aggregate annual principal payments due on the bonds in the next five years are as follows: 1996 -
337,750,000; 1997 - $39,415,000; 1998 - 541,315,000; 1999 - $44,650,000 and 2000 - $47,870,000.
The interest rates on the 1994 Series C variable-rate bonds are adjusted from time-to-time. Bondholders may require repurchase of the 1994 Series C bonds at the time of such interest rate adjustment. MMWEC has entered into an agreement to provide for the remarketing of the
. d MASSACHUSETFS MUNICIPAL WHOLESALE [
ELECTRIC COMPANX NOTES TO FINANCI AL STATEMENTS I' i
DECEMBER 31.1995.1994 AND 1993
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F Power Supp1v System Revenue Bonds (continued) 1994 Series C bonds if repurchase is required. In addition, MMWEC and a bank have entered into an !l agreement that_ generally provides for the purchase, by the bank, of the 1994 Sedes C bonds if not t l
remarketed and issuance of bank bonds under a separate letter of credit facility. The debt service on te 1994 Series C bonds is on a parity with the senior lien fixed-rate bonds to the extent that the debt !l service on the 1994 Series C bonds is equal to or less than the debt service on the bonds refunded by (
te 1994 Series C bonds in a given bond year. {
rj f-Debt Service Fonvard Deliverv Anreement ;l In conjunction with the issuance of the 1994 Series C bonds, MhnVEC entered into an '!
investment instrument, known as a Debt Service Forward Delivery Agreement (Forward Agreement) hl for purposes other than trading. The Forward Agreement improves the return on the investment of "l monies on a portion of the Bond Fund during the seven year term. MhBVEC currently makes monthly deposits to the various accounts within the Bond Fund for the semiannual payment of its debt service on ,
its outstanding bonds. In exchange for the right to dictate the investment of such monies, the [,'
counterparty pays a fixed amount to MhnVEC on a periodic basis, providing MhnVEC a fixed yield that could be earned on a security with a five to seven year maturity purchased at the time the contract (
was executed, while complying with the maturity limitations for investments in the Bond Fund under the terms of the GBR. The counterparty has the right to sell to MMWEC Government Obligations that [
mature prior to the relevant debt service payment dates during the term of the Forward Agreement. 3 MhnVEC reserves the right to terminate the Forward Agreement in whole or in part in t
- Il connection with any purchase, redemption or refunding of fixed-rate bonds, counterparty default or counterparty credit rating deterioration to below investment grade. The Forward Agreement provides I for the calculation and payment of liquidated damages to the counterparty reflecting market interest .
rates at the time of the termination compared to the rate levels in the Forward Agreement. L The cash requirement under the Forward Agreement requires MMWEC to make available to the counterparty an average balance of $30.3 mildou over the seven year term of the agreement in exchange for investments in Government Securities, to be held by MMWEC's trustee, ,
that mature prior to MMWEC's debt payment dates. t The Forward Agreement is t$ot recognized in the Statements of Financial Position to the i extent that settlement of cash in exchange for financial instmments has not occurred. To the ex'ent cash has been exchanged for Govemment Securities, the Government Securities are recorded on the I
Statements of Financial Position as Special Funds.
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r M ASSACHUSETTS M131CIPAL WHOLESALE ;
ELECTRIC COMPANY j NOTES TO FINANCI AL STATEMENTS (
DECEMBER 31.1995.1994 AND 1993 5
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Interest Rate Protection Anreement The 1994 Series C bonds provide a hedge against interest rate risk on the net funding ;
- ost of approximately $100 million of short-term floating rate investment assets. MMWEC purchased a
- 41 million Interest Rate Protection Agreement (Cap Agreement), comprised of an $11 million tranche vith a protection rate of 6.85% expiring on June 30,2000, and a $30 million tranche with a protection !
rate of 7.25% expiring on June 30,2002, to limit the interest rate exposure on a portion of the 1994 h 3eries C variable-rate debt to the extent that the variable debt costs exceed the fixed-rate received on p
-he Forward Agreement described above. (
h MMWEC purchased the right to receive annually an amount by which an index-based t
.nterest rate, which approximates the interest rate on the 1994 Series C bonds, exceeds the protection ate in the Cap Agreement. MMWEC has the right to terminate the Cap Agreement if the provider or i C
ts guarantor's credit rating falls below a double A and receive payment of liquidation damages
.iesigned to enable MMWEC to enter into an equivalent agreement. The cost of the Cap Agreement r was paid up front and is included in Other Deferred Charges on the Statements of Financial Position.
U There are no future MMWEC cash requirements under the terms of the Cap Agreement. The Cap Ag. cement was purchased for purposes other than tradir.g.
U Net Revenue Available for Debt Servig p In accordance with the provisions of MMWEC's GBR, MMWEC covenants that it shall .
5x, revise and collect rates, tolls, rents and other fees and charges, sufficient to produce revenues to [
pay all operating and maintenance expenses and principal of, premium, if any, and the interest on the @
Bonds and to pay all other obligations against its revenue. Revenues, which include applicable interest 0 earnmgs from investments, are required to equal 1.10 times the annual debt service for each h
- ontract year ending June 30, after deduction of certain operating and maintenance expenses and exclusive of depreciation. For the contract years ended June 30, 1995, 1994, 1993 and prior years, (
MMWEC met the GBR debt service coverage requirements for the applicable MMWEC Projects. K i
Contract Year Ended June 30. !
1995 9 19991 1993 (
t Debt Service Coverage: (In Thousands)
Revenues $163,777 $162,980 $168,531 Other Billings 577 588 661 Reserve and Contingency Fund Billings 11.085 11.549 12.444 Total 175,439 175,117 181,636 Less: Operating & Maintenance Expenses (53.508) (48.078) (44.747) .
Available Revenues Net of Expenses $121.931 $127.039 5136.889 l Debt Service Requirement $110.846 S115.490 S124.444 Coverage (110% Required) 110 % 110 % 110 %
h
MASSACHUSETTS MUNICTPAL WHOLESALE ELECTRIC COMPANY !
NOTES TO FTNANCIAL STATEMENTS DECEMBER 31.1995.1904 AND 1993 (3) Dch1(continued)
Notes Payable MMWEC maintains a 55 million revolving line of credit to finance temporarily certain power purchases made by MMWEC for resale under power purchase contracts. The balances outstanding were 50,50 and $64,000 as of December 31,1995,1994 and 1993, respectively, with a
. maximum outstanding balance of $216,000, $197,000 and $641,000 during 1995,1994 and 1993,
, respectively. Interest charged on borrowings under the line of credit is at the bank's prime rate. In addition, a commitment fee of one quarter of 1% per annum is charged on the unused portion of the line based on the average daily principal amount of the loan outstanding.
(4) Electric Generation Facilities and Finaneir.g MMWEC's power supply capacity includes interests in the Stony Brook Peaking and Intermediate units which it operates. MMWEC is a nonoperating joint owner in the W.F. Wyman No.
(
4, Millstone Unit 3 and Seabrook Station units. Electric Plant In Service also includes MMWEC's Service Operations which totalled S2.5, $2.4 and $2.3 million in 1995,1994 and 1993, respectively.
Facility and MMWEC Amounts as of December 31 Projects Share of Canability (MM 1995 J93_4 1993 (In Thousands)
Peaking Project Stony Brook 170.0 5 56,255 5 56,242 $ 56,330 Intermediate Project Stony Brook 311.3 150,658 150,579 150,322 W.F.Wyman No. 4 22.7 7,376 7,372 7,357 Wymut Project Nuclear Project No. 3 Millstone Unit 3 36 8 129,145 129,079 128,651 Millstone Unit 3 18.4 51,064 51,031 50,816 Nuclear Mix No.1 Seabrook Station 1.9 8,572 8,562 8,575 Nuclear Mix No.1 Nuclear Project No. 4 Seabrook Station 49.8 258,467 258,202 258,545 Nuclear Project No. 5 Seabrook Station 12.6 70,744 70,676 70,764 Project No. 6 Seabrook Station 69.0 500.077 499.711 500.186 S1.232.358 S1.231.454 $1.231.546 MMWEC's investment in Seabrook Station represents a substantial portion of its plant investment and financing. In January 1988, Public Service of New Hampshire (PSNH), then the lead owner of Seabrook Station, filed for protection from its creditors under Chapter 11 of the Federal Bankruptcy Code. In June 1992, in accorda2ce with a court-approved plan of reorgamzation, Northeast Utilities acquired PSNH and placed Seabrook Station in a separate single asset subsidiary corporation.
3 - ,
n
~. 4 MASSACHUSETTS MUNICIPAL WHOLESALE i; ELECTRIC COMPANY NOTES TO FINANCIAL STATEMENTS c, DECEMBER 31.1995.1994 AND 1993 Y
(4) Electric Generation Facilities and Financing (continued) [
F In June 1988, MMWEC's Board of Directors adopted a strategic plan of action relating L to its Seabrook Station joint ownership interests. MMWEC and PSNH subsequently entered into a {
Memorandum of Understanding whereby PSNH paid MMWEC's capital costs up to $30 million, [
MMWEC maintained its full ownership in Seabrook Station and agreed to a Comprehensive Settlement 5 2
Agreement which was approved by the bankruptcy court. The Agreement provided for amendments to the Seabrook Joint Ownership Agreement, notices of default being rescinded, certain covenants not to !
suc o PSNH to pay MMWEC S2 million per year for eight years upon commercial operation of i Seabrook, joint termination of the Sellback Agreement between MMWEC and PSNH and certain other considerations.
L{
ii MMWEC's net costs, including capitalized interest expenses and $126.5 million incurred i h
for the cancelled Seabrook Unit 2, hve been deferred and are being recovered under the terms of the U
PSAs.
Benefit Plans I (5)
MMWEC has two non-contributory defined benefit pension plans covering substantially all full-time active employees. One plan covers union employees (union plan) and the other plan covers non-union employees (non-union plan). The amount shown below as the Pension Benefit Obligation 3 for MMWEC is a standardized disclosure measure of the present value of pension benefits, adjusted for ,'
the effect of projected salary increase.s, estimated to be payable in the future as a remit of employee service to date. The measure is the actuarial present value of credited projected benefits and is independent of the funding method used to determine contributions to the plans.
The Pension Benefit Obligation was computed as part of an actuarial valuation
,i performed as of January 1,1995. Significant actuarial assumptions used in the valuation include a [
weighted-average discount rate of 7.5% a year compounded annually, and projected salary increases of 5.5 % a year compounded annually. The Pension Benefit Obligation for both plans is as follows:
L
(
Amounts as of January 1. I 1995 199_4 1901 (In Thousands)
Retirees currently receiving benefits and terminated employees not yet receiving benefits S 324 S 282 S 137 Current Employees:
1,423 e Vested 2,391 1,710 Non-vested 2.110 2.015 1.447 ,
Total Pension Benefit Obligation 4,825 4,007 3,007 Net assets available for benefits, at market 3.598 3.025 2.395 Unfunded Pension Benefit Obligation S 1.227 $ 982 5 612 i
o
. s s-MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY [
NOTES TO FINANCI AL STATEMENTS I DECEMBER 31.1995.1994 AND 1993 Benefit Plant (continued) [
3)
Net assets available for benefits, at market, as a percentage of the Pension Benefit
)
)bligation, were 74.6%,75.5% and 79.6%, as of January 1,1995,1994 and 1993, respectively. The :
.nfunded Pension Benefit Obligation as a percentage of covered payroll was 20.6%,17.8% and 11.4%
'ar the years ended January 1,1995,1994 and 1993, respectively.
t MMWEC makes annual contributions to the pension plans equal to the amounts recorded as pension expense, which were S887,000, S471,000 and $489,000, for the years ended December 31,
.995,1994 and 1993, respectively. Contributions as a percentage of MMWEC's covered payroll were (
14.6%,7.9% and 8.9% for the years ended December 31,1995,1994 and 1993, respectively. The I
_mion plan uses the aggregate actuarial cost method and the non-union plan uses the frozen initial liability actuarial cost method in determining pension expense. In addition to the actuarial assumptions autlined above, the assumed long-term rate of return used in determining pension expense was 8.5%.
l ;
Pension costs applicable to prior years' service are amonized over thirty years. A ten-year historical l
- rend and other information which is required to be disclosed in accordance with Governmental Accounting Standards Statement No. 5 is not considered material and therefore is not presented.
i MMWEC contributes to an employee savings plan administered by an insurance j i company. All full-time employees meeting the service requirements are eligible to panicipate in this defined contribution plan. Under the provisions of the plan, MMWEC's contributions vest i immediately. MMWEC contributed $105,L00, 5104,000 and $105,000 while the employees contributed $169,000, $167,000 and $170,000 during the years ended December 31,1995,1994 and 3 5
1993, respectively.
?
commitments and Comingencies ;
(6) i Power Purchases MMWEC entered into agreements for panicipation in the transmission interconnection between New England utilities and the Hydro-Quebec electric system near Sherbrooke, Quebec (Phase I), which began commercial operation in October 1986. The New England portion of the interconnection was constructed at a total cost of about $140 million, of which 3.65% or SS million is MMWEC's share to support. MMWEC also entered into similar agreements for participation in the interconnection between New England utilities and the Hydro-Quebec electric system for the expansion of the Hydro-Quebec interconnection (Phse II) which went into commercial operation in November 1990. MMWEC's Phase II equity investment approximates 0.6% or S3.3 million. MMWEC has ,
corresponding agreements with certain of its members and another utility to recover MMWEC's share of the costs associated with the interconnection.
l~
MASSACHUSETTS MUNICIPAL WHOLESALE ~
ELECTRIC COMPANY l l
NOTES TO FINANCI AL STATEMENTS DECEMBER 31.1995.1994 AND 1993 , ,
Commitments and contingencies (continued)
(6) ,
Power Sales Agreements ,
MMWEC sells the Project Capability of each of its Projects to its members and other utilities (Project Panicipants) under PSAs.
In 1988, the Vermont Supreme Coun ruled that the Project No. 6 PSAs between ll I
MMWEC and the Vermont Project Participants were void since inception. Consequently, pursuant to ;
the PSAs, MMWEC increased the remaining Project No. 6 Panicipants pro rata shares of Project Capability to cover the shonfall (step-up), which action was challenged by certain Massachusetts Participants. The Supreme Judicial Court for the Commonwealth of Massachusetts in MMWEC et. al. i
- v. Town of Danvers et. al. noted that "the Project 6 PSAs executed by the defendants are valid and that ui the step-up provisions therein have been properly invoked".
Inasmuch as the Stony Brook Intermediate Project has approximately 8.2% of its Project Capability under PSAs with Vermont entities, which PSAs are vinually identical to the Project No. 6 PS.A, MMWEC sought a declaratory judgment and received a Vermont Supreme Court opinion which upheld the validity of the Vermont Participants' Intermediate Unit Project PSAs.
The former Vermont Project No. 6 Participants, through various court actions, sought restitution of 56.1 million paid to MMWEC prior to their PSAs being declared void. MMWEC paid the $6.1 million to the former Vermont Project No. 6 Participants through satisfaction of a Vermont Superior Court judgment against MMWEC and settlement of a Vermont Federal Court action.
MMWEC subsequently billed said amount to the Project No. 6 Participants. Two of the Project Panicipants withheld payment of their respective shares which total $2.1 million. Litigation is currently pending in the Massachusetts courts in which MMWEC is pursuing enforcement of the PSA and collection of the withheld funds.
Based on bond counsels' opinions regarding the validity of the PSAs and general counsel representations regarding the litigation, discussions with such counsel, and other considerations, management believes that the ultimate resolution of the actions described above will not have a material, adverse effect on the financial position of MMWEC.
Other Issues j The Price-Anderson Act (the Act), a federal statute amended in 1988 to extend to the year j 2002, mandates an industry-wide prr~ ram of liability insurance for nuclear facilities. The Act now provides approximately $8.9 billion for public liability claims from a single incident at a nuclear l facility. The $200 million primary layer of insurance for the liability has been purchased in the i i
commercial market. Secondary coverage of 58.3 billion is to be provided through a $75.5 million per
iI MASSACHUSETTS MUNICIPAL WHOLESALE J1 ELECTRIC COMPANY NOTES TO FINANCIAL STATEMENTS U DECEMBER 31.1995.1994 AND 1993 "
, (6) Commitments and Contingencies (continued)
- k. ,
1 Other hmes (continued) !'
incident assessment of each of the currently licensed nuclear units in the United States. The maximum assessment is $10 million per incident per unit in any year. If the sum of the liability claims and costs from an incident exceed the maximum amount of fmancial protection, each reactor owner is subject to (L ,
an additional S3.8 million assessment. The maximum assessment is subject to adjustment for inflation every five years. MMWEC's interest in Millstone Unit 3 and Seabrook Station could result in a j[l tl maximum assessment of S3.8 and 59.2 million, respectively. ,. i
- l Insurance has been purchased from Nuclear Electric Insurance Limited (NEIL) to cover +;
the cost of repair, replacement, decontamination or premature decommissioning of utility property vl resulting from insured occurrences at Millstone Unit 3 and Seabrook Station. In addition, insurance dl was purchased from Nuclear Mutual Limited (NML) to cover the primary cost of repair, replacement g or decontamintion of utility property resulting from insured occurrences with respect to MMWEC's 'i ownership interest in Millstone Unit 3. MMWEC is subject to a S1.0 and S2.6 million assessment for its participation in Millstone Unit 3 and Seabrook Station, respectively, for excess property damage, decontamination and decommissioning, as well as retroactive assessments if losses exceed the fmancial resources available to NEIL and NML.
p, 1
MMWEC is not currently covered under gradual pollution liability insurance related to MMWEC's Stony Brook power plant. Nothing har. come to management's attention concerning any material pollution liability claims made during 1995 or outstanding as of December 31,1995.
5 MMWEC has established a trust fund to enhance its Directors' and Officers' liability ?
coverage. The purpose of the fund is to make available funds for the purchase of Directors' and ;
Officers' liability insurance or indemnification of the Directors or Officert 3
i (7) Investments and Denosits All bank deposits, which amounted to $918,000 at December 31,1995, are maintained )
at one fmancial institution. The Federal Deposit Insurance Corporation currently insures up to
$100,000 per depositor. MMWEC's uninsured deposits ranged from zero to $3.0 million during 1995 b due to seasonal cash flows, and the timing of daily cash receipts. At December 31,1995 and 1994 j investments are classified as available for sale and reported at fair value with unrealized gains of $2.8 y raillion and $208,000, respectively, and unrealized losses of $44,000 and $2.3 million excluded from earnings and reported as a component of Amounts Recoverable Under the Terms of the Power Sales Agreement on the Statements of Financial Position. At December 31,1993, investments are stated at cost adjusted for accretion (amortization) of the discount (premium). At December 31,1995, an 6 securities underlying repurchase agreements, and all other investments, were held in MMWEC's name by custodians consisting of the Constmetion Fund Trustees, Bond Fund Trustee or MMWEC's
l, . .-
i MASSACHUSETTS MUNICIPAL WHOLESALE j ELECTRIC COMPANY /
NOTES TO FINANCIAL STATEMFEIS DECEMBER 31.1995.1994 ANO 1993 l l
. (7) Investments and Deposits (continued) depository bank. Investments, representing the Special Funds and Cash and Temporary Investments, as well as certain additional amounts disbursed but available for investment, and accrued interest, are 1 presented below:
1995 1994 1993 Amortized Market Amorti .ed Market Amortized Market ,
Tyne ofInvestment Cost Basis Value _CmLBuis_ Value Cost Basis Value (In Thousands)
Repurchase Agreements S 278 $ 285 S 5.826 5 5.896 S 2.735 $ 2.893 Other Investments:
U.S. Treasury bills 17,626 18,044 2,775 2,878 15 15 ;
U.S. Treasury notes 68,811 70,743 77,250 75,090 97,283 101,090 U.S. Agency bonds 6,707 6,797 9,311 9,277 16,314 16,958 Municipal bonds 7,346 7,672 - - - -
U.S. Agency discount notes 100,671 100,671 92,029 91,990 76,824 76,832 Investment in Government Mutual Funds - - - -
42 42 Total Other Investments _201d61 203.927 181.365 179.235 190.478 194.937 Total Investments $201.439 S204.212_ S187.191 $185.131_ $193.213 $197.830 During 1995 and 1994, the proceeds from the sale of available for sale securities were S2.0 and $10.1 million resulting in gross realized gains of 50 and $273,000 and gross realized losses of
$84 and $2,000, respectively. The basis on which cost was determined in computing realized gain or loss was specific identification. Including repurchase agreements, the average contractual maturity of the investments in debt securities at December 31,1995 and 1994 were 433 and 545 days, respectively.
Temporary investments, made up of funds available from amounts for which the expense has been recognized but not cleared by the bank, approximate $3.5, $1.8 and $.8 million in 1995,1994 and 1993, respectively, and are included in the total investments noted above.
Due to seasonal cash flows during 1995,1994 and 1993, MMWEC, from time to time, invested in repurchase agreements with its depository bank that were collateralized by securities in MMWEC's name held by the depository bank. MMWEC's practice is to monitor the market value of the underlying securities to ensure that the market value equals or exceeds the amount invested.
Management estimated market values of the securities based on independent quoted market prices.
v
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MASSACHUSETTS MUNICIPAL WHOLESALE Ij ELECTRIC COMPANY !
NOTES TO FINANCIAL STATEMENTS DECEMBER 31.1995.1994 AND 1993 l
(8) Fair Values of Financial Instruments l
The following methods and assumptions were used to estimate the fa.. alue of each , l class of financial instrument for which it is practicable to estimate that value:
t; Investments and Decommissioning Trusts - The fair values estimated are based on l quoted market prices for those or similar investments. s{
t[
Long-Term Debt - The fair value i.e estimated based on quoted market prices for the f
[
same or similar issues.
Interest Rate Protection Ageement - The fair value is based on average quoted market p prices of agreements with similar duration and strike prices. I
't l Debt Service Forward Deliverv Agreement - The fair value generally reflects the j{ '
i estimated amounts that MMWEC would receive or pay to terminate the contracts at the reporting date, ;l thereby taking into account the current unrealized gains or losses of open contracts.
[;
y; The estimated fair values of MMWEC's financial instruments are as follows: .
k.I 1995 1994 1993 I 3
LL Carrying Estimated Carrying Estimated Carrying Estimated :j Value Fair Value Value Fair Value Value Fair Value (In Thousands) l Financial Assets:
Investments 5 204,212 S 204,212 $ 185,131 $ 185,131 $ 193,213 $ 197,830 il Decommissioning Trusts 7,763 7,960 6,110 5,609 4,683 4,682 a Interest Rate Protection 9 Agreement Financial Liabilities:
Long-Term Debt 597 1,303,465 1,335,963 418 709
- .341,215 581 1,235,800 jli 1,374,605 1,436,100 1I Unrecognized Financial E Instruments: p Debt Service Forward 9, e
Delivery Agreement -
3,969 -
270 - -
p J
.) >
The carrying amounts for Cash, Accounts Receivable, Notes Payable, Accounts Payable ?'
and Accrued Expenses approximate their fair value due to the short-term nature of these instruments.
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NPMG Peat Marwick LLP h 33 Hgh Street Te'ephone 617 9881000 Telefax 617 988 0800 $
Boston. MA 02110 2371 5
q D
INDEPENDENT AUDITORS' REPORT ON SUPPLEMENTARY INFORMATION p
q The Board of Directors Lj Massachusetts Municipal Wholesale Electric Company: l We have audited and reported separately herein on the financial statements of d Massachusetts Municipal Wholesale Electric Company as of and for the years ended December 31, q 1995,1994 and 1993. f n
Our audits were made for the purpose of forming an opinion on the basic financial { '
statements of the Massachusetts Municipal Wholesale Electric Company taken as a whole. The supplementary informs. tion included in Schedules I through III is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such supplementary [-
infonnation has been subjected to the auditing procedures applied in the audit of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic fmancial statements take a as a whole. .
>i l-e March 15,10')6 r
I i
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blASSACllUSET13 MUNICIPAL WilOLIISALII ELEC12 tlc CUMPANY F11]J111 STATEMENT 3 UE FINANCIAL FOSITION ,
IJECEMBER31.1D3 (la housamts) .
NtK't.I!AR HUCLEAR NUCLEAR HUCLl'A R PROJECT llVDRO QUEBl!C AssE23 NO. 6 Pt!AKING INTURM11DIATE WYMAN ,PilAS11 Il TOTAL SERVICE MIX l PROJ. 3 PROJ. 4 PRO). 5 Electric Plant $ 258,467 $ 70,744 $ 500,077 $ 56,255 $ 150,658 $ 7,376 $ $ t,234,808 1 2,450 $ 59,636 $ 129,145 in Service (3,670) j)27,459j Acetanulated Depee 3 tion (2,162) Jt6,004) J37,lli) J48,587) Jt3,343) J95,206] 404,871 J29,232) 27,023 J82,048) 68,610 3,706
- 907,349 288 43,542 92,028 2U9,880 57,401 6,015 - - - 13,814 1,054 1,819 3,915 1,011 Nuclear Fuel Net of Anuntization _n '
58,412' ~ 410,886 27,023 68,610, , 3,706 - 921,l63 288 44,596 93,847 2 t 3,795 Total Elecisic Plant Special Funds Bond Fund 7,066 1,841 4,553 250 - 21,939 2,691 2,043 2,660 835 laterest, Principal and Retpement Account -
2,506 6,455 298 - 81,33I
- 7,136 11,758 14,640 4,567 33,971 Reserve Account 4,391 878 2,036 310 - 17,787 3,588 2,492 3,135 957 Reserve and Contingency Fund -
19,607 1,313 60,605 2,209 5,883 - 6,856 1,827 14,803 8,107 -
_ 20,434, Revenue Fund -
16)
Woriing Capital Funds _ 20,440_ _, , _
M),231__. 13,332 32,651 2,171_ . _ (6) 202.096 15,624 27,298 8,186__
20,440 22.176 Current Assets - I - - -
(3) I,259 Cash and Temporsry Invesanents 1,260 - - 1 8,044 77 55 14 1,242 46 72 40 143 6,329 26 Accounts Receivsble - - - - - - - 5,561 Unbilled Revenues 3,561 - -
13,885
- 63 - 1,690 428 2,341 1,455 7,654 184 .
Inventories -
e 442 (17) (27) 3 II) tile) 122 (398) (10) -
d e
Advances te (f rom) Projects Prepaid Expenses 366 662 1,213_ l 412_ 357, 1,956 _6_ 12 7,340 32 246 140
- 6,018_
34,697, 1,263_ 3,I61 798 5,426 I,629, Total Cunene Assets _ 13,960 734 39,991 2,417 134 236.793 34,40 _0 16,358 23,439, 30,452 8,984 65,6E. 14,9 1 letal Special Funds and Cunent Assets Delerred Garges Amounts Recoverable (Psymble)
UnJer Tenns of the Power Sales 31,454 16,003 (254) (627) 213,572 (7) 14,743 90,793 (2,653) 4,610 (488)
Agieements UnaruortizcJ Dcht Discount 13,910 38l 2,049 7 - 32,739
- 2,505 4,371 6,644 2,572 and Espenses 1,841 - - 7,763 1,455 2,802 1,329 336 - -
Nuclear Decommissioning Tsusts -
93 459 50 58'5 6,167_
265 256 401 713 186 _ 3,149 Other (32) 260,241 258 79,259 98,367, _6_,0_ 3 8 7,704 50,354 _jl4) 18,518 (197}
$ 34,946 5 140.213 $ 215.653 $ 250.278 $ 75.100 J $26J917_ 1_41R0_ 7
}_12_di_2_ Q Q 1_L418X LIAll1LII1ES Ime-Term Debt $ 112,895 $ _5,195 $ - $ I,303,465 m Bends Payable $ - $ 132,445 $ 205.340 $j37,765 $ 71,780 $ 501,220 $ 36,825 o
3*
Current Liabilities Current Maturities of 5,025 3,825 5.640 1,570 11,205 3,045 7,125 315 - 37,750 $
C teng-Tenn Debt 267 76 3 8,622 1,376 349 I,918 52 Accounts Payable Accreed Espensen 4,374 5,526 107 210 100 130 1,500 364 2,074 41 700 51 - 10,596 k Member and Participant Advances H 99 49,00l_
_ 25,046 842 3,218, 2,428_ 640_ 8,307 _ 2,007 6,125 289 and Reserves 5,145 _ _14,217 731 102 105,969 34,946 6,184, 7,273 10,944_ 2,923 23,508
- - 8,763 1,584 ,_ 3,040, __ I,569 397 2,173 -
L{y8d97, Deferred Credits L,ME L,,,,[0JL 1.-@4 Q 40,23 L 21),6Q L2p,2R ( ?),t g j _ 526d?L }j[yg, L12Mll
_n=m -- - .- -.. . . . .
xx. - .- .
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a,an;uousua. as wunaua Aa, evalui s.LAa.as LLa.t astat t.ul,aa niin -
t l'RulliCr $TNI EMiiN13 Ol' UI'ERAllONS yrAR ENDEllDF.Cr.MRut 3tg (In Thousands)
NUCLEAR NUCLEAR NUCLEAR NUCLEAR l'ROJECT llYDRO QUEBEC SERVICE MIX l _ PROL 3 PROJ. 4 PROJ. 5 NO. 6 PEAKINO INTERMEDIATE WYMAN PIIASE 11 TOTAL Revenuee $ 40,68I $ 15,188 $ 21,537 $ 28,016 $ 7,926 $ 56,466 $ 7,743 $ 32,307 $ 1,727 $ 582 $ 212,173 Interest incoine I,349 983 1.485 I,916 605 4 865 2,022 130 151 13,780 Total Revenues and Interest income ~5 42.030 $ 16.171 $ 23.022 $ 29.9d } 8.53i~ 3 1653,2145 1 3141 D4 329_ $ l.857 3. _7 13_ $ 225.95f Operating and kvice Expenses:
FucI Used in Electric Generation 3 - $ 746 $ I,292 $ 2,405 $ 627 $ 3,900 $ 1,249 $ 13.293 617
$ 24,12y Purchased Power 39,800 - - - - - - - -
598 40,398 Other Operating 2,153 2,149 3,809 5,221 1,352 7,837 1.179 4,664 377 - 28,741 hiaintenera 29 I,010 1,886 1,692 428 2,343 564 1,547 62 -
9,561 Depreciation 39 1,923 4,070 9,280 2,539 17,928 2,256 229 6.228 -
44,492 Taxes Other Then Income 6 472 845 1,290 I,787 390 1,0J8_ 153 327_ -
6,348_
l 42,027 6,300 11,902 19,888 5,273 33,795 5.638 26,810 1,435 598 153,669 laterest Expense:
Interest Chargee 3 6,817 11,176 13,774 4,303 32,041 2,248 6,115 255 - 76,732 )
Interest Charged to Projects i During Construction -
(14) (41) 6,803 (16) (5) J8) -
(104) 3 11,135 13,758 4,298 32,013 2,248 6,115 255 -
76,628 Total Operating Costs and
,e Interest Expense 42,030 13,I03 23,037 33,646 9,571 65,808 7,886 32,925 1,693 230,297 598_
W*
Gain un casalted Units - Net -
(133) -
- 19) L2] (12) - - - -
(156)
(I33) -
(9) (2) (12) - -
(156)
Decrease (lucrease)in Amounts Recoverable Under the Power Sales Agreements due to excess of Expoemas (Revenues) over Revenues (Expensee) -
3.201 (15) (3,6J4 (1,03 4 (5,116) 722 1,404 164 135 (4,I88)
} 42.03_0__ $ 16.17I. } 23.022 $ 29.992 $ 8.531
$ (c.680 W $ 34.329 J_1851 M $ 225.953 l
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a Al MA15ADIUSli1TSMUNICIPALWitQl.ESAI.REI.ECrast rmBANY FSDlBCIATATEMENIRDFCASH RarS
- YSAR ENDED DErumasa 13 gen (la Theunende)
- NUCIEAR ._s SERVICE MIX I NUCl. EAR NUCt EAR NUCLEAR PekHECT PRO). 3 PRO). 4 _ NO. 6 HYDRO QUEJEC Cemh fle=e tream operessag activitsee: _rst'U. 5 PEAKING INTERMEDIATE _ WYMAN PflASEil 1UTAl.
Toast Revemece end Imereest Incesso $ 42.030 $ 16,178 $
TeamI C es end Espensee. net 23.022 $ 29.992 $ t.531 $ 60.600 (42.030) (12.970) (23,037)
$ t.608 $ - 34.329 $ l.857 $ 7J)
(33.637) (9.569) (65.796) $ 225.953 se arrive et met cash (7.8e6) (32.925) (1.693) psev'eled by opermesng activities: (3 981) (230.t48) .
Deprecieeise end t' 39
. 2.124 4.451 9.53 2.604 Assertirassee 15.251 2.244 6.t70 229 915 1.438 2.600 738 45.677 Change he curwat essees and liebeheies. 4.4 75 90 369 8
- Accounts Receivable 10.633 (2.351) 131 (t4) 96 2' Unbelled Revemmes (924) (46) 123 (40)
(457) - - - - (15) (3.017)
Invenkwies -
2 Prepee' t Enremsee 48 10 56 (457)
(104.a 405 798 (213) 8.854 30 Accounts reyeble I25 32 If2 I.792 716 (66) (3) 2 (323 Accrued Espensee end Oeher (96) (S S) (19) (163) 1.595 I.752 93 58 (174) (56) 30 (22) 456 103 (4.227) 97 Meenber and Participene Advances (59) (435) 27 (14) (2.246) esel Reeersee 4.730 (615) 103 (566) (154) 7.674 (123 1.560 . (2J) (63) 12.522 '
Net cash provided by operating activiesee 4.325 6.190 6.723 8.589 2.299 20.228 2.437 10.993 393
- 21 62.195 Cash flows frees inveeting activities:
Consenectaes Expenditures and Pisechaseo of Norteer Fuel (16) (543) (1.4 78) (2.724) (689)
, leievest Charged to Projecte (3.771) (12) (15) (5) -
IJ Duris.g Constructies 19.693)
Y Net (lescrease) Deeresse in Special Funde (3,980)
(14)
(v23)
(41)
(I,898)
(t6)
(909)
(5) (28) - - - -
(104)
Change us met Unseatired Usin en Special Fund. (200) (7.019) 324 13 653 768 736 244 8.502 (4.444) (It?) (20) (19.266)
Decemreiseiening Taust Payasenes - 172 4II J4 (276) (525) (323) (52) 4.83)
Det er (3) 69 (444) - - -
132 68 18 94 (1.654) i Het cash previled by tusal tes) - 6 -
i investing sctivities 164 (4.056) __ (1.334) 13.042) (3.168) (794) (9.370) 4s4 (4.117) (SS) (20)
Cash flows freni financing activities: (15.500j Paymenes for Bond Iseue Coets -
(1) (1) (1)
Peyenente for Primeipel of1mes-Tenue Debt -
(4.555) (3.680)
(3) (I) (1) - -
(5.420) (1,505) (10.855) (2.920)
(s)
(6.000) (305) -
Net cash used for financing activities (36.420)
(4.556) (3.461) 15.421) (1.5653 (10.555i (2.921) 16.88I3 (305i -
(36.425)
Net increase in cash art seenporary invenenenes 269 - - - - -
Cash esed Teespessey Inveetnemes - - -
t 270 et Beginning of Year 991 Cash and Teenporary laveetneans - _ -
t -
1 - - -
(4) 949 et End of Year M$ - $ - 3 I $ - $
Cash paid during the year for internet I $ -
W $ t.259 tn (Net of esneunt copiemiized as ebe=a above) $ 3 $ 6.457 $ 10.706 $
13.148 @ $ 30.540 M '$ 5.710 Q $ -
$ 73.317 h
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