ML20210C121
| ML20210C121 | |
| Person / Time | |
|---|---|
| Site: | Oconee, Mcguire, Catawba, McGuire, 05000000 |
| Issue date: | 09/12/1986 |
| From: | Tucker H DUKE POWER CO. |
| To: | Harold Denton, Youngblood B Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML20210C127 | List: |
| References | |
| NUDOCS 8609180249 | |
| Download: ML20210C121 (27) | |
Text
{{#Wiki_filter:W s I DUKE POWEIt GOMPANY P.O. nox 33180 CHARLOTTE, N.C. 28242 11 AL II. TUCKER TELEPHONE vws peresseur @M) MMM NtELEau Paomecitou September 12, 1986 Mr. Harold R. Denton, Director Office of Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission Washington, D. C. 20555 Attention: Mr. B. J. Youngblood, Project Director PWR Project Directorate No. 4 Ret Catawba Nuclear Station Docket Nos. 50-413 'and 50-414
Dear Mr. Denton:
Please find enclosed ten (10) copies each of the Duke Power Company, North Carolina Municipal Power Agency Number 1 North Carolina Electric Membership Cooperative, Piedmont Municipal Power Agency and Saluda River Electric Cooperative 1985 Annual Reports. These financial reports are submitted pursuant to 10 CFR 50.71(b). Very truly yours, eN Ital B. Tucker JGT/07/ sib Enclosures (10) xc (w/o encionures) Dr. J. Nelson Grace, Regional Administrator U. S. Nuclear Regulatory Commission Region II 101 Marietta Street, NW, Suite 2900 Atlanta, Georgia 30323 NRC Resident Inspector Catawba Nuclear Station 0609100249 EL60912 PDR ADOCK 00000413 00 I l>DH l' l c)
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CONTENTS REPORT OF CERTIFIED PUBLIC ACCOUNTANTS PAGE FINANCIAL STATEMENTS Balance Sheet 2 Statement of Operations and Patronage Capital 3 Statement of Changes in Financial Position 4 Notes to Financial Statements 6-13 ADDITIONAL INFORMATION List of Officers and Trustees Schedule of Construction Work in Process Cash Investments Accounts Receivable Patronage Capital Assigned Schedule of Federal Financing Bank Notes Accounts Payable
A MEMBER OF ARTHUR YOUNG INTERNATIONAL k ythh hhkh Snv$e $rohna 29602 ut The Board of Trustees Saluda River Electric Cooperative, Inc. We have examined the accompanying balance sheet of-Saluda River Electric Cooperative, Inc. at December 31, 1985_and 1984 and the related statements of operations and patronage
- capital, and changes in financial position for the years then ended.
Our examination was made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the financial statements mentioned above present fairly the financial position of Saluda River Electric Cooperative, Inc. at December 31, 1985 and 1984, and the results of operations and changes in financial position for the years then ended, in conformity with generally accepted accounting principles applied on a basis consistent with that of the preceding year. Our examination has been made primarily for the purpose of expressing an opinion on the financial statements referred to above taken as a whole. The accompanying additional information is presented for purposes of additional analysis and is not a required part of the basic financial statements. Such additional information has been subjected to the auditing procedures applied in the examination of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole. March 14, 1985 J
-~ ~ ~ M SALUDA RIVER ELE @ 7, BALN DECEMBER 31 ASSETS _19 8 5 ~ 1984 i Utility plant: Electric plant in service (Note 2) $240,606,520 232,352 Construction work in process (Notes [ 1 and 3) 174,812,247 358,795,446 415,418,767 359,027,798 Less: accumulated depreciation and amortization (Note 2) 7,340,106 36,145 i Net utility plant 408,078,661 358,991,653-Current assets: Cash and cash equivalents-general fund 23,517,551 4,628,045 Cash and cash equiVJ1ents-loan fund (Note 8) 851,079 256,642 Cash and cash equivalents-pollution gg y, control. fund (Note 8) 25,064,221 Accounts receivable 11,432,817 4,221,206 Interest receivable 337,908 259,799 Total current assets 36,139,355 34,429,913 Invectments (Note 5) 48,296 48,296 g Debt service reserve funds-pollution control bonds (Note 6) 8,344,005 9,172,730 Deferred charges (Note 7) 623,059 644,513 l $453,233,376 $403,287,105 i See accomp l
w- - _,/ IC COOPERATIVE, INC. CE SHEET 1985 and 1984 CAPITAL AND LIABILITIES 1985 1984 Patronage capital (Notes 8 and 10) 7,746,351 5,612,368 Long-term debt (Note 8): Mortgage notes payable 384,097,590 343,365,000 Note payable 6,863,835 6,150,931 Pollution control bonds payable 44,200,000 44,200,000 435,161,425 393,715,931 Deferred revenue (Note 15) 4,439,320 4 Current liabilities: '~ Accounts payable 5,034,007 3,573,520 Interest payable 852',273 385',286 Total current liabilities 5,886,280 3,958,806 t $453,233,376 $403,287,105 l I TI i l APERTURE CARD Gf()f/$02/9-O/ nying notes. f2e h Available 0, ipbrture Car.' i =, -.
SALUDA RIVER ELECTRIC COOPERATIVE, INC. STATEMENT OF OPERATIONS AND PATRONAGE CAPITAL FOR YEARS ENDED DECEMBER 31, 1985 and 1984 1985 1984 Operating revenues: Electrical revenues $79,737,910 $43,303,866 Operating expenses (Note 3): Cost of power: Purchased 47,474,308 39,774,335 Produced 10,413,717 Annual dues 126,728 Administrative' expense 41,849' 14,695 Office expense 18,577 10,645 Salaries 78,040 24,779 Employee benefits 15,530 6,798 Miscellaneous expense 15,610 3,619 Depreciation and amortization (Notes 2 and 6)^ ' 4,708,703 14,892 62,893,062 39,849,763 Net operating margins 16,844,848 3,454,103 i Non-operating margins: Net interest income (Note 3) 1,454,463 238,960 Net interest expense (Note 3) (11,726,008) Deferred revenue (Note 15) (4,439,320) 1 (14,710,865) 238,960 Net margins for period 2,133,983 3,693,063 Patronage capital, beginning of the year 5,612,368 1,919,305 Patronage capital, end of the year $ 7,746,351 5 5,612,368 See accompanying notes. - 1 1
I SALUDA RIVER ELECTRIC COOPERATIVE STATEMENT OF CHANGES IN FINANCIAL POSITION FOR YEARS ENDED DECEMBER 31,'1985 and 1984 1985 1984 Funds were provided by: Net. margin 2,133,983 3,693,063 Items not.affecting working capital in the current period: -Depreciation and amortization 4,708,703 14,892 Amortization of nuclear fuel (Note 4) 2,616,712 Deferred revenue 4,439,320 Working capital provided by operations 13,898,718 3,707,955 Increase in mortgage notes 78,991,000 53,170,000 y Proceeds from pollution control bond issue 44,200,000 l Reduction of (addition to) j debt service reserve fund-pollution co'ntrol bonds 828,725 (48,296) Amortization of discount on notes payable 712,904 638,859 94,431,347 101,668,518 Funds were applied to: Reduction of notes payable 38,258,410 Additions to utility plant 56,390,969 69,300,991 Establishment of reserve funds - pollution control 9,172,730 Increase in deferred charges 618,142 94,649,379 79,091,863 (Decrease) increase in working ~ capital 5 (218,032) $ 22,576,655-See accompanying notes. _4_
SALUDA RIVER ELECTRIC COOPERATIVE, INC. STATEMENT OF CHANGES IN FINANCIAL POSITION FOR-YEARS ENDED DECEMBER 31,'1985 and 1984 (continued) Changes in components of working capital: 1985 1984' Increase (decrease) in current assets: Cash-general fund $18,889,506 $ 4,081,282 Cash-loan fund 594,437 (5,898,175) Cash-pollution control fund (25,064,221) 25,064,221 Accounts receivable 7,211,611 (166,958) Interest receivable 78,109 259,799 1,709,442 23,340,169 I Increase (decrease) in current N liabilities: Accounts payable 1,460,487 378,228 Interest payable 466,987 385,286 1,927,474 763,514 (Decrease) increase in working capital (218,032) $22,576,655 u l I See accompanying notes. -
SALUDA RIVER ELECTRIC COOPERATIVE, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31', 1985 and 1984 1. DESCRIPTION OF THE ENTITY The accounting records of Saluda River Electric Cooperative, Inc. (the Cooperative) conform to the Uniform System.of Accounts, prescribed by the U.S. Department of Agriculture as modified-for electric borrowers of the Rural Electrifica-tion Administration (REA). The Cooperative was formed in 1958 and is composed of five rural electric cooperatives located in South Carolina. The Cooperative represents the member cooperatives in dealings with Duke Power Company (Duke). Since November 1, 1983, the Cooperative has purchased wholesale power from Duke for sale to the member cooperatives. 2 In order to to secure a reliable source of power for their consumer, these members, through the Cooperative, purchased portion of Duke's Catawba Nuclear Station, consisting of a two nuclear reactors. Under the terms of the Purchase Agreement between Duke Power Company and the Cooperative, the Cooperative legally owns 18.75% of Unit 1 and 9.375% of all support facilities including land and related assets. However, under the terms of the Interconnection Agreement, the Cooperative is entitled to 9.375% of the power generated by both Unit l'and Unit 2. Also, under the terms of the Operating-and Fuel Agreement between Duke anF. the Cooperative, costs payable by the Cooperative are based upon a 9.375% interest in Unit 1, Unit 2 and the support facilities. As a result of the substance of these agreements, the Cooperative, for financial reporting purposes, accounts for its investment based upon a 9.375% interest in the entire project. The Purchase Agreement was executed on October 14, 1980 and the Cooperative began payments on its construction in February of 1981. The preliminary estimates of final costs are approximately $432,000,000. . 1
SALUDA RIVER ELECTRIC COOPERATIVE, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1985 AND 1984 2. ELECTRIC PLANT IN SERVICE Major classes of the Cooperative's electric plant in. service as of December 31, 1985 and 1984 are as follows: 1985 1984 Structures, improvements and land $ 72,329,072 Equipment 154,510,139 232,352 Nuclear fuel 13,767,309 $240,606,520 $232,352 Depreciation is computed based on the straight-line method with a half year of depreciation taken in the year of acquisition. Annu'al depreciation rates in effect in 1985 and 1984 were as follows: 1985 1984 E Electric plant in service (Unit 1) 4.1% C Mobile substation 3.2% 3.2% office furniture and fixtures 7.0% 7.0% Vehicles 17.0% 17.0% The compo' site depreciation rate for electric plant in service includes a, factor to provide for the expected cost. of decommissioningtUnit 1. Individual component lives range from 30 years fort structures and improvements to 15 years for other general ;21 ant equipment. The Cooperative's portion of decommissioning *these jointly owned facilities, based on-current price leve.s and decommissioning promptly after the 1 unit is taken out bf service, is estimated at approximately $17,000,000 for Utit 1. This estimate will be adjusted periodically to a reflect changing price levels and technology. 3. CONSTRUCTION WORK EN PROCESS l The construction. vork in process represents investment in i the Catawba Nuclear Station explained in Note 1. In addi-tion to capitalizing all construction related expenditures, l the Cooperative capitalizes 40% of certain operating expen-j ditures that contribute indirectly to the construction. Prior ~ to commercial. operation of Unit 1 the capitalization j percentage was 80%. The amount of operating expenses cajpitalized was $688,943 for 1985 and $218,172 for 1984.. j
I SALUDA RIVER ELECTRIC COOPERATIVE, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1985 AND 1984 3. CONSTRUCTION WORK IN PROCESS (continued) The Cooperative also capitalizes net interest cost on borrowings used to finance the construction. Total net interest cost capitalized was $29,454,057 for 1985 and $37,100,595 for 1984. 4.- FUEL COST The cost of nuclear fuel is being amortized based on core burn. The total amortization expense was $2,616,712 - in 1985. The Cooperative, in accordance with the terms of the opera-tion and maintenance agreement for Catawba, pays Duke a monthly fee for the disposal of spent nuclear fuel. This disposal fee'is based on kilowatt hours of energy generated and is charged to operations and maintenance expense as a cost of produced power. ^ 1 5. INVESTMENTS IN ASSOCIATED ORGANIZATIONS Investments in associated organizations at December 31, 1985 and 1984 consisted of $48,296 of Capital Term Certificates (CTC) with the Cooperative Finance Corporation (CFC). The CTC's are presently earning 4% interest and will be kept by the CFC until 2080. In order to maintain membership in the CFC, the Cooperative will acquire additional CTC's in future years based on a percentage of the preceding year's gross revenue. 6. DEBT SERVICE RESERVE FUNDS - POLLUTION CONTROL BONDS The reserve funds-pollution control bonds are restricted funds with the CFC and had the following balances at Decem-ber 31, 1985 and 1984: 1985 1984 Pollution Control Bonds (PCB) $4,324,676 $3,978,000 Pollution Control Bonds-Construction (PCBC) 1,809,329 2,984,730 Subordinated. Term Certificates (STC) 2,210,000 2,210,000 $8,344,005 $9,172,730 .j '
l I' SALUDA RIVER ELECTRIC COOPERATIVE, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1985 AND 1984 6. DEBT SERVICE RESERVE FUNDS - POLLUTION CONTROL BONDS (con-tinued) The PCB Reserve Fund was established to provide for deficiencies, if any, in the amount available to pay the principal and interest on the bonds and to provide for the final payments of principal and interest on the bonds. Investments in the PCB Reserve Fund earn interest at rates ranging from 8% to 10.375%. The PCBC Reserve Fund was established to pay remaining pollution control expenditures for the Catawba Nuclear Station. Investments in the PCBC' Reserve Fund earn interest at 7.80%. The STC's represent a 5% compensating balance of the Cooperative's Pollution Control Bonds, earn. interest at 11.648% and are outstanding for the life of the bond issue. i I 7. DEFERRED CHARGES Deferred charges consist of the following at December 31: J 1985 1984 l Unamortized Debt Expense-1 Federal Financing Bank (FFB) notes S 40,499 $ 41,807 Unamortized Debt Expense-Pollution Control Bonds (PCB) 582,560 602,706 $623,059 $644,513 The unamortized debt expense of the FFB notes is being amortized based on the mortgage notes outstanding. The unamortized debt expense of the PCB consists primarily of I underwriters and legal fees associated with the issuance of the PCB and is being amortized based on bonds outstanding. 8. LONG-TERM DEBT Long-term debt consists of the following at December 31: 1985 1984 Mortgage Notes-FFB $384,079,590 $343,365,000 Note Payable-Duke Power 6,863,835 6,150,931 Pollution Control Bonds 44,200,000 44,200,000 $435,143,425 $393,715,931,
t >i I i SALUDA RIVER ELECTRIC COOPERATIVE, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1985 AND 1984 8. LONG-TERM DEBT (continued) Mortgage Notes - FFB These are mortgage notes payable to the Federal Financing Bank (FFB). The debt functions basically as a line-of-credit and funds are borrowed as needed for construction of the Catawba Nuclear Station. Unadvanced loan funds of $125,172,410 and $165,905,000 at December 31, 1985 and 1984, respectively, were available to the Cooperative under the I current agreements. Interest rates vary from 8.965% to
- l 13.197%.
Substantially all assets of the Cooperative are pledged as security for this debt and, under the terms of the debt agreement, the Cooperative is restricted as to the amount-of patronage ' credit which can be distributed along with restrictions of certain investment and capital activities. Maturity dates on this debt range from January 1, 1986 to December, 2019. The Cooperative has the ability and intent to extend the_ maturity dates of the FFB. notes which are due in 1986 and 1987. The note maturity dates may be extended. for varying lengths of time at-the interest rates prevailing on the date extended.- The Cooperative will not be required. to make principal payments on the mortgage notes until June, 1988. The cash proceeds of the mortgage notes are restricted for the purchase of the Cooperative's interest in the Catawba Nuclear Station, nuclear fuel and administrative and general expenditures associated with the construction. Note Payable - Duke Power On February 6, 1981, the Cooperative executed an unsecured note payable to Duke Power Company in the amount of $18,928,353, which represents the Cooperative's share of the i negotiated cost of transferred assets of the Catawba Nuclear Station at that date. ll The note was recorded by the Cooperative in 1983 at its face 'l value. The note is non-interest bearing until June, 1995 i and should have been recorded at its present value in 1983. In 1984, the recorded amount of the note was adjusted to re-flect t.h e present value, resulting in a $13,416,281 decrease L
SALUDA RIVER ELECTRIC COOPERATIVE, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1985 AND 1984 8. LONG-TERM DEBT (continued) Note Payable - Duke Power (continued) in construction work in process and in notes payable. At December 31, 1985 and 1984, the note and related discount, which is amortized using the interest method, were as follows: 1985 1984 Note payable $18,928,353 $18,928,353 Less discount (deferred interest) 12,064,518 12,777,422 $ 6,863,835 $ 6,150,931 This note is to be paid in one hundred equal quarterly payments consisting of principal and interest over a term of 8 twenty-five years. The first installment will be payable on June 29, 1995, ten years after the date on which the - first Unit of the Catawba Plant was put into service. Interest shall only accrue after June 29, 1995 on the principal balance at a rate of 11.118%. Pollution Control Bonds On November 29, 1984, the Cooperative issued $44,200,000 of 30 year pollution control bonds. The funds are restricted to pay or refinance the costs associated with certain pollution control facilities at the Catawba Nuclear Station. The bonds bear a variable, semi-annual interest rate (5.1%~ at December 31, 1985). Principal payments escalate and are to be made each year beginning with $650,000 in 1994 until $4,000,000 is due on the maturity date in 2014. Assets in construction work in process are pledged as security for the bonds. The Cooperative also has unadvanced loan funds of $12,000,000 available relating to commitments from the National Rural Utilities Cooperative Finance Corporation. I The funds may be borrowed at any time during the twelve months ended November 26, 1986. As of December 31, 1985, no proceeds have been borrowed by the Cooperative under this agreement. l 1
I i SALUDA RIVER ELECTRIC COOPERATIVE, INC. NOTES ~TO FINANCIAL STATEMENTS DECEMBER 31, 1985 AND 1984 8. LONG-TERM DEBT (continued) In accordance with industry practice, portions of long-term debt due within one year have not been segregated and included under current liabilities. 9. PATRONAGE CAPITAL Net margins are allocated to patronage capital accounts in accordance with guidelines established by the Board. of Directors for each class of member. Patronage capital of $2,133,983 and $3,693,063 in 1985 and 1984, respectively, was allocated to the five member cooperatives on the basis of electric revenues billed to each member compared to total electric revenues for the year. Patronage capital credits may be paid to the Cooperative members at the discretion of the Board of Directors except as restricted by the debt _8 agreements described in Note 8. 10. TAXABLE STATUS South Carolina law exempts all electric cooperatives from 1 state income taxes; consequently, the Cooperative is exempt from state income taxes. Whether or not a cooperative is exempt from federal income taxes is a function of certain tests under Internal Reverule Service Code Section 501(c) (12) relating to the sources of revenue and is determined annual-ly. For the year ended December 31, 1984 the Cooperative was exempt from federal income taxes. l For the year end' December 31', 1985, the Cooperative was deemed a taxable entity for federal income taxes purposes. Differences between income tax and financial reporting income result primarily from dif ferent treatment of deferred revenue, member capital credits and methods of computing j depreciation. Investment tax credits are accounted for as reductions of income tax expense in the year utilized, under i the flow through method. Investments tax credits of $546,305 were utilized for financial reporting purposes. No l investment tax credits were utilized for income tax J purposes. 12-i y,, - - w -,_.,4_
_. -. ~ _ -.. - - _ _. l SALUDA RIVER ELECTRIC COOPERATIVE, INC. 1 NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1985 AND 1984 10. TAXABLE STATUS (continued) At ' December 31,
- 1985, the Cooperative had the following carryforwards:
Income Financial 3 Tax Reporting Investment tax credits $27,319,838 $26,773,533 (expire in 2000) Net operating losses $12,187,935 (expire in 2000) 11. COMMITMENTS At December 31, 1985, the Cooperative was negotiating with Broad River Electric Cooperativo, a member of the Coopera-A. tive, for the transfer of the ownership rights and respon-J sibilities of the Cherokee Falls Hydro Project (Cherokee l Falls). As a result of these negotiations, the Cooperative i i may incur a commitment to pay all the operating costs of Cherokee Falls through 2020. Anticipated annual costs range from approximately $1,285,000 in 1986 to $9,024,000 in 2020. 1 Annual costs will be offset by the sale of power generated i by Cherokee Falls to its members at the prevailing Cooperative rates. 12. CONTINGENCIES The Cooperative entered into an agreement with Duke whereby it purchases reserve power and power and energy supplemental to its retained capacity in the Catawba Nuclear Station (Catawba). The Cooperative, as a partial owner of Catawba, is charged a monthly fee for the reserves and supplemental l power and energy. During 1985, in accordance with the terms of the agreement,.the Cooperative challenged certain components of these costs included in the monthly fee paid to Duke. At December 31,
- 1985, the Cooperative was continuing negotiations with Duke for a refund of the challenged costs.
l The outcome and amount of re fund cannot be determined at '_J this time. I t
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SALUDA RIVER ELECTRIC COOPERATIVE, INC. NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 1985 AND 1984 1 13. DEFERRED REVENUE Current rates were set with the intention of recovering certain operating and debt service costs expected to be incurred in the future. Revenue related to these expected future costs was deferred until such time as these costs are incurred. In the event the expected future costs are not incurred, future rates will be decreased by a corresponding 4 amount. l .i }I l li J i I i,
A1;UITIO'NAL INFORMATION 4 e l
SALUDA RIVER ELECTRIC COOPERATIVE, INC. OFFICERS AND TRUSTEES At December 31, 1985 J.A. Darby, President Route 1 Box 63, Rock Hill, South Carolina 29730 Jce L. White, Vice President 200 Sunset Drive, Abbeville, South Carolina 29620 J. David Wasson, Jr., Secretary-Treasurer Route 3 Box 778, Laurens, South Carolina 29360 Robert C. Carroll, Trustee 119 Hillside Drive, Gaffney, South Carolina 29340 Charles E. Dalton, Trustee 117 East Baker Street, Pickens, South Carolina 29671 John M. Gantt, Trustee i Route 2 Box 40A, McCormick', South Carolina 29835 l Ralph Hendrix, Trustee l Route 15, Greenville, South Carolina 29607 D. W. Stribling, Trustee Walnut Hill, Westminster, South Carolina 29693 Conway B. Sutton, Trustee Route 8 Box 254H, Inman, South. Carolina 29349 R. O. Williams, Trustee i 201 Oak Street, York, South Carolina 29745 Joseph W. Mulholland, Executive Vice President 106 Wilderndss Lane, Laurens, South Carolina 29360 Charles L. Compton, Attorney Leftbank, Laurens, South Carolina 29360 I I
SALUDA RIVER ELECTRIC COOPERATIVE, INC. SCHEDULE OF CONSTRUCTION WORK IN PROCESS As of December 31, 1985 Duke Power, Purchase of Nuclear Facilities $ 27,925,222 Duke Power, Preliminary Costs 18,928,353 Unamortized discount of Duke Note Payable' (12,064,518) Documentary Stamps on Deed 77,240 Interest Expense Capitalized 140,016,182 Interest Earned on Loan Fund Investments (594,100) e Interest Earned on Investments and Reserves (73,940) Interest Earned on Pollution Control Fund Investments (892,711) Administrative Expen'se 429,497 ~ Engineering Fees 197,331 Management Salaries 419,643 Employee Benefits 145,785 Employee Payroll Taxes 25,350 Legal Fees 130,534 Office and Telephone 133,267 Insurance 8,972 Miscellaneous 140 l Total Construction Work in Process $174,812,247 i
SALUDA RIVER ELECTRIC COOPERATIVE, INC. CASH INVESTMENTS AS OF DECEMBER 31, 1985 GENERAL FUND INVESTMENTS: The Palmetto Bank, Laurens, S.C. Sweep Account, variable 186,467 Certificate of Deposit #21438, 0 7.25%, Due 3/26/86 1,000,000 Federal Farm Credit Bonds #300300548 @ 7.97%, Due 5/1/86 2,012,522 Standard Federal, Columbia, S.C., Certificate of. Deposit #1-01-23078-5 @ 7.95%,- Due 3/24/86 1,027,304 Certificate of Deposit #1-01-23276-5 @ 7.95%, Due 2/24/86 1,019,356 Certificate of Deposit #1-01-25199-4 9 8.00%, Due 5/24/86 1,000,000 Cooperative Finance Corporation, Washington, D.C. Note #85294005 @ 7.80%, Due 1/21/86 2,530,915 J Note #85794094 @ 7.80%, Due 1/21/86 3,600,000 Note #85311059 @ 7.85%, Due 1/02/86 550,000 Note #85326149 @ 7.85%, Due 1/17/86 750,000 Note #85336091 @ 7.80%, Due 1/02/86 2,700,000 Note #85354047 @ 7.75%, Due 2/03/86 2,314,556 Note #85361107 @ 7.80%, Due 1/02/86 700,000 Note #85354260 @ 7.80%, Due 2/03/86 2,500,000 Noto #85357052 @ 7.80%, Due 2/03/86 1,200,000 Bank of York, York, South Carolina, Certificate of Deposit #9760 @ 7.70%, Due 2/20/86 100,000 First Trident, Certificate of Deposit #27936 @ 8.45%, Due 2/19/86 100,000 Woodruff Federal, Woodruff, South Carolina, Certificate of Deposit #1-00-057046-3 @ 8.00%, Due 2/20/86 100,000 Bankers Trust, Certificate of Deposit #256473-0, @ 7.75%, Due 2/26/86 100,000
-. - ~. .~. - . =_.. - ~ 4 ,j SALUDA RIVER ELECTRIC COOPERATIVE, INC. CASH INVESTMENTS AS OF DECEMBER 31, 1985 4 (Continued) Security Federal,~ Columbia, S.C., Passbook #1901355 @ 5.' 5 % 6,376 TOTAL GENERAL FUND INVESTMENTS' $23,497,496 OTHER GENERAL FUND CASH NOT INVESTED 20,055 TOTAL GENERAL FUND CASH $23,517,551 i LOAN FUND INVESTMENTS: t The Palmetto Bank, Laurens, S.C., Sweep Account, variable 850,822 N TOTAL LOAN FUND INVESTMENTS 850,822 OTHER LOAN FUND CASH NOT INVESTED 257 TOTAL LOAN FUND CASH 851,079 POLLUTION CONTROL BOND FUND INVESTMENTS: Morgan Guaranty Trust Co. of NY, Certificate of Deposit #029993-AT-1 @ 8%, due 2/18/86 $' 230,066 { Treasury Bond #912810-DB-1 @ 10.375%, due 11/15/12 4,094,610 i i Certificate of Deposit #CTC -07196-14 @ 7.80%, due 1/15/86 1,809,329 r Cooperative Finance Corporation, Washington, D.C. Term Certificate #44 @ 11.648, 'due.8/15/14 2,210,000 'd TOTAL POLLUTION CONTROL BOND FUND INVESTMENTS' $8,344,005_ l i
' SALUDA RIVER ELECTRIC COOPERATIVE, INC. ACCOUNTS RECEIVABLE AS OF DECEMBER 31,'1985 1985 Blue Ridge Electric Cooperative, Inc. $ 1,810,318 Broad River Electric Cooperative, Inc. 643,101 York Electric Cooperative, Inc. 1,296,717 Little River Electric Cooperative, Inc. 397,712 Laurens Electric Cooperative, Inc. 1,415,425 Duke Power 5,869,544 $11,432,817 TOTAL e O I
1 l SALUDA RIVER ELECTRIC COOPERATIVE, INC. PATRONAGE CAPITAL AS OF DECEMBER 31,-1985 AND 1984 i j BLUE BROAD LITTLE RIDGE LAURENS YORK RIVER RIVER TOTAL-5 Patronage Capital at 12/31/83 664,079 480,594 390,579 $237,034 $147,019 $1,919,305 Add:- net margin for j 1984 1,224,214 950,483 821,152 467,099 230,115 3,693,063 Patronage Capital at 12/31/84 1,888,293 1,431,077 1,211,731 704,133 377,134 5,612,368 4 l Add: net margin for 1985 697,556 548,199 474,726 254,648 158,854 2,133,983 1 3 Patronage Capital at 12/31/85 $L 585,849 $L 9J9,276 $Lp86R $958,781 $535,988 $7,746,351 i 1985 Allocation Percentage
- 32.7 25.7 22.2 11.9 7.5 100
- Allocation of patronage capital is based on member share of electric revenues.
i l t 4 ) l ~ i =7 m
SALUDA RIVER ELECTRIC COOPERATIVE, INC,
SUMMARY
OF FEDERAL FINANCING BANK NOTES AS OF DECEMBER 31, 1985 Note Date of Interest Interest Number Note Term Due Date Rate Principal F0065 1/03/84 Variable 1/03/86 10.838% 8,640,000 F0190 1/31/84 Variable 1/31/86 10.565% 1,106,000 F0070 2/01/84 Variable 2/01/86 10.565% 960,000 F0075 3/01/84 Variable 3/02/86 10.965% 2,565,000 F0195 3/02/84 variable 3/02/86 11.023% 4,907,000 F0080 4/02/84 Variable 4/02/86 11.558% 7,042,000 F0085 5/03/84 Variable 5/03/86 11.869% 1,793,000 F0090 6/01/84 Variable 6/30/86 12.955% 2,915,000 F0200 4/02/84 Variable 6/30/86 11.616% 11,700,000 F0095 7/02/84 Variable 7/02/86 13.081% 8,646,000 F0100 8/02/84 Variable 9/30/86 12.451% 2,350,000 F0105 9/04/84 Variable 9/30/86 12.490% 4,367,000 F0110 10/01/84 Variable 10/01/86 12.024% 8,892,000 F0205 5/01/84 Variable 9/30/86 11.947% 2,330,000 F0210 6/01/84 Variable 9/30/86 13.042% 3,095,000 F0215 7/02/84 Variable 9/30/86 13.197% 12,427,000 F0220 8/08/84 Variable 9/30/86 12.'364% 700,000 F0225 9/04/84 Variable 9/30/86 12.490% 3,525,000 F0230 10/01/84 Variable 12/31/86 12.083% 9,400,000 F0115 11/01/8% Variable 12/31/86 11.150% 2,250,000 F0235 11/01/84 Variable 12/31/86 11.150% 900,000 F0240 12/03/84 Variabic 12/31/86 10.536% 3,080,000 y F0010 2/06/83 Fixed 12/31/15 11.118% 132,087,362 F0030 6/01/83 Fixed 12/31/15 10.980% 930,000 F0035 6/30/83 Fixed 12/31/15 11.092% 6,460,000 F0120 12/01/82 Fixed 12/31/16 10.719% 1,500,000 F0125 12/30/82 Fixed 12/31/16 10.535% 10,569,000 F0245 3/01/85 Variable 3/31/87 10.682% 18,040,000 F0250 3/05/85 Variable 3/31/87 10.780% 4,388,000 F0255 4/01/85 Variable 6/30/87 10.507% 10,854,000 F0260 5/02/85 Variable 6/30/87 9.912% 3,933,000 -F0265 6/03/85 Variable 6/30/87 8.965% 3,285,000 F0040 8/05/85 Fixed 12/31/16 10.815% 1,820,228 F0270 7/01/85 Fixed 12/31/19 10.483% 12,336,000 F0275 8/01/85 Fixed 12/31/19 10.734% 996,000 F0280 9/03/85 Fixed 12/31/19 10.514% 948,000 F0285 9/30/85 Fixed 12/31/17 10.516% 11,962,000 F0045 9/03/85 Fixed 12/31/15 10.530% 3,610,000 F0165 9/03/85 Fixed 12/31/17 10.521% 5,637,000 F0050 9/30/85 Fixed 12/31/15 10.525% 7,000,000 F0170 9/30/85 Fixed 12/31/17 10.522% 11,150,000 F0290 11/01/85 Fixed 12/31/17 10.296% 305,000 F0175 11/01/85 Fixed 12/31/17 10.303% 3,454,000 F0055 11/04/85 Fixed 12/31/15 10.267% 1,728,000 F0060 12/02/85 Fixed 12/31/15 9.907% 1,000,000 F0180 12/02/85 Fixed 12/31/17 9.903% 2,811,000 F0295 12/02/85 Fixed 12/31/17 9.897% 778,000 i F0300 12/30/85 Fixed 12/30/17 9.330% 11,166,000 F0185 12/30/85 Fixed 12/31/17 9.336% 11,760,000 TOTAL AMOUNT ADVANCED $384,097,590
SALUDA RIVER ELECTRIC COOPERATIVE, INC. ACCOUNTS PAYABLE AS OF DECEMBER 31, 1985 ALLOCATED TO ALLOCATED CONSTRUCTION TO WORK IN OPERATING PROCESS EXPENSE TOTAL 787,098 787,098 Duke Power Company (O&M) Duke Power Company 4,095,641 4,095,641 SCE&G 83,206 83,206 Internal Revenue Service 1,185 1,185 CFC (Annual Fee) 45,792 45,792 1 i j CFC (Morgan Guaranty Charges) 21,085 21,085 $5,034,007 $5,034,007 TOTAL ACCOUNTS PAYABLE 4 1 I i l ll l [}}