ML20216E508
| ML20216E508 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 12/31/1986 |
| From: | Fenton D NEW HAMPSHIRE ELECTRIC COOPERATIVE, INC. |
| To: | |
| Shared Package | |
| ML20216D932 | List: |
| References | |
| NUDOCS 8706300709 | |
| Download: ML20216E508 (6) | |
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[ New Hampshire Electric Cooperative, Inc. l l
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' t ; "I P y.; TO THE MEMBERS:
lI { . ; 3 1986 was a year of rate reduction for members of New Hampshire L ' .
Electric Cooperative, Inc. The small reduction came about because of the j : i falling price of oil in world markets - a trend that already may have reversed
. t itself.
~h,' I The reduction serves as a reminder that your Cooperative is impacted I by many forces over which it can exercise little control but from which it can derive some benefit from time to time.
-. The strong 1986 growth in members and sales are in large part a reflection of the prosperity in New Hampshire and in all New England.
This whole area is experiencing a strong economy and a low level of
., _ unemployment not found elsewhere in the nation.
The operating results of your Cooperative are detailed elsewhere in no , this report. Record growth in number of members, peak load, kilowatt-hour 4 ~ . sa:es and operating margins were recorded in 1986.
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New goals must be set for the years ahead on the basis of 1986 performance.
- A new power requirement survey has been developed raising the rate Dennis E. Fenton, President of growth to 3.7% for planning purposes.
- The sharp increase in load requires that we step up the load DIOECTORS TERM EXPIRES management efforts the Cooperative has developed in recent years.
- Your Board of Directors has instructed the Manager to develop better Dennis E. Fenton, Andover 1987 communications with all classes of membership, to develop more effective PRESIDENT use of electric power in the home and in the commercial loads of the Ezra Mann, Woodsville Cooperative.
1989 VICE-PHESIDENT
- The burden on existing plant to meet increasing load has caused your directors to apply to the Rural Electrification Administration to borrow Fletcher Adarr s Plymouth 1989 more than $25 million for system improvements and line extensions during the coming two years.
Edwin Moulton, Meredith 1987 A significant event in 1986 was the completion of Unit 1 of the Seabrook SECRETARY Nuclear Plant in which your Cooperative owns 25 megawatts of capacity.
Albert E. Carlisle, Tilton 1989 Unit 1 is completed and loaded with fuel.
Your Board feels it is in the best interests of the Cooperative that the James Page, Benton 1988 plant go on line. The investment in Seabrook is substantial and increases Gail F. Paine, Intervale 1989 monthly as interest is paid and capitalized in the cost of plant.
Ted Putnam, Charlestown 1988 Last year over 30 percent of all power used in New England was produced in nuclear plants. Seabrook should go on line to meet the Arthur Wadleigh, Ashland 1987 requirements of growth in New England.
Roger Wingate. Mirror Lake 1988 The Cooperative is currently negotiating with the Rural Electric Eldwin A. Wixson, Plymouth 1987 Administration and other entities for a restructuring of debt that will help protect our members from sharp increases in rates during the phase-in John Pillsbury, Plymouth period for Seabrook.
MANAGER Edwin Moulton of Meredith is not seeking re-election to the Board this Mayland H. Morse, Jr., Concord year. Mr. Moulton came to the Board in 1972 and has served as Secretary since 1978. His efforts are much appreciated.
8706300709 870623 PDR ADOCK 05000443 I PDR
NEW HAMPSHIRE ELECTRIC COOPERATIVE, INC.
- Manager' John Pillsbury informed the Board last year that he would like to retirs as Manager at the close'of the 1987 Annual Meeting. The Board is going through the manager search process at the present time. We expect to introduce th3 new manager at_the 1987 Annual Meeting in June. Mr. Pillsbury came to the New Hampshire Electric Cooperative, Inc. In 1967. Space in this report does not allow us to review his many accomplishments but one point is without question
- every action John Pillsbury took as Manager over the past 20 years was what he thought was in the best interest of ths N:w Hampshire Electric Cooperative, Inc. and its members.
- Once again we would like to recognize the dedication of all the employees of our Cooperative. They are the people who meet the day to day needs of members and insure the excellence of the system. , ,
The Board welcomes the interest and advice of all members and i urge your attendance at the Annual Meeting in Plymouth on June 2,1987.
Please take time to cast your ballot. Each and every member's vote is important.
Very truly yours, s
s Dennis E. Fenton, President '
GENERAL STATISTICS
[f9862 1985 1984 1983 1982 Maximum kw Demand For System l127,446 ' 116,156 107,750 94,009 97,962 Load Factor bs L45.5% 45.1 % 44.8 % 47.9 % 45.6 %
Number of Employees . :194; 179 177 176 179 Number of Customers Per Employee ,262 269 260 253 243 Total Miles of Line - End of Year
~ 4,245 ~ 4,136 4,073 4,027 4,007 Number of New Services Added During Year ', 13,446 J 1,987 1,757 1,492 1,209 Uncollectible Accounts Written Off During Year ( $ . 89,011;. $130,393 $121,341 $121,084 $ 91,694 Oper. & Maint. Costs Per Mile of Line l'$463' $458 $387 $400 $377 Consumer Accounts Expense Per Customer ; ;$22 $21 $21 $20 $18 EXPENSES INCOME
/ ENERGY COST RESID(NilAL $ ALE $
d PATRON AGE C APII AL 7O '
YoutS 3.59'
/
59 % -
10 % - >,",'!J'!!. ?" ' "' 64 % " ' ""'"" '" "
28 %
S4 OTHER 7% DE P R E CI A110 N 13 %
% , 5% #
CP RATION ND INDu$1 RIAL $ ALE S o , ,,i R )
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e NEW HAMPSHIRE ELECTRIC COOPERATIVE, INC, j
- p. HISTORICAL STATlSTICS - !
^ 1965 986[ 1984 1983 1982
. KILOWATT HOUR SALES:
- D... .'
R:sidential; *
- (307,593,750 f 275,972,948 260,603,202 236,555,020 238,844,606 Commercial & Industrial . [155,855,953 1 142,121,697 131,640,731 122,917,703 .116,572,515 i Strzet & Highway Lighting . Q1,386,216 I 1,386,074. 1,384,467 1,375,892 1,379,360 j Sal:s for Resale -
Uti ' O O 5,268 19.041 0 i
' TOTAL ;;
F 464,835,919 ,419,480,719 393,633,668 360,867,656 356,796,481
- Increase / Decrease - , '10.81 % 6.57 % 9.08 % 1.14 % 1.25% ' ~
REVENUES FROM SALE OF KILOWATT hot $tS:
Risidential'
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$24,703,728 . $23,697,762 $23,021,012 $21,082,551 . $20,014,777 Commercial & Industrial X12,080,359 11,878,035' -11,348,943 10,688.150 ' 9,557,806
'Strtit & Highway Lighting - 247,033 255,569' 255,634
.: khf; 236,607 ' .237,681 SIlzs for Resale 0 0 289 1,064 0 TOTAL 1 $37,020,694 $35,822,830 $34,625,813 $32,027,399 $29,810,264 increase / Decrease 3.34 % 3.46% 8.11 % 7.44 % 2.76 %
l AVERAGE REVENUE PER KILOWATT HOUR SOLD:
RIsidential f J $0.0803 $0.0859 '$0.0883 $0.0891 ' $0.0838 L Commercial & Industrial 0.0775 0.0836 0.0862 -0.0870 0.0820 Strut & _ Highway Lighting ' g 0.1707. 0.1782 0.1846 0.1858 0.1723 Siles for Resale r s 0.0000 . 0.0000 0.0549 0.0559 0.0000
' TOTAL $0.0796 $0.0854 $0.0880 $0.0888 $0.0835
. Increase / Decrease AVERAGE NUMBER OF CUSTOMERS:
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6.79 % - 2.95% - 0.90% 6.35 % .1.46%
R:sidential
.a'_i45,578 43,199 41,402 ' 40,142 39,289 Commercial & Industrial L 5,311 4,921 4,623 4,401 4,245-
'Strat & Highway Lighting [ j43 40 40 42 42 Sales for Resale : F" 0' O 1 1' O.
TOTAL 50,932 48,160 46,066 44,586 43,576 l:P increase / Decrease 5.76 % 4.55 % 3.32 % 2.32 % 2.48 % AVERAGE KILOWATT HOUR USE: f, RIsidential : 6,749 6,388 6,294 increase / Decrease {' 1,49 % 5,893 6,079 5.64 % 6.81 % 4 3.06 % .56% KILOWATT HOURS PURCHASED (BY VENDORS)- Public Service Co. of NH 444,513,242 403,244,085 370,031,713 337,193,053 346,460,755 Cran Mountain Power Co.. 1,641,600 1,586,700 1,502,400 1,512,300 NIw England Power Co. [Q 5,286,700 1,809,900 4,888,900 4,617,600 4,512,200 4,663,300 ' Czntral Vermont Public Service Corp, f 10,121,810 9,527,540 9,394,580 ' 8,819,800 8,004,780 Miina Yankee Atomic Power Corp. 7 45,769,100- 39,264,800 37,642,400 42,021,900 33,179,600 Oth:r Suppliers P ' 4,611 14,400 0 0 0 ETOTAL f 507,505,363 - 458,581,325 423,272,993 394,049,353 393,820,735
- Increase /Decreasa P 10.7 % 8.3 % 7.4 % 0.1% 2.8%
COST OF KILOWATT HOURS PURCHASED: h"_, Public Service Co. of NH . ! $21,402,270 $22,466,980 $21,516,670 $19,616,495 $20,579,337 Grezn Mountain Power Co. b- 128,819 105,337 60,219 59,690 56,928
' N w England Power Co. fe . 282,792 277,214 277,921 264,572 256,034 Csntral Vermont Public Service Corp. [ 586,187 535,656 499,915 476,601 377,822 Milne Yankee Atomic Power Corp. M 951,660 1,072,570 - 1,031,175 902,162 872,797 Othat. Suppliers b 155 612 0 0 0 4 TCTAL ... [ $23,351,883 $24,458,369 $23,385,900 $21,319,520 $22,142,918 increase / Decrease !;. 4.5% 4.6% 9.7% 3.7% 0.8% ] ' AVERAGE COST PER KWH PURCHASED POWER: I Putlic Service Co, of NH f $0.0481 $0.0557 $0.0581 $0.0582 $0.0594 I Green Mountain Power Co.
New England Power Co. f: 0.0712 0.0642 0.0380 0.0397 .0.0376 I ?O.0535 0.0567 0.0602 0.0586 0.0549 Central Vermont Public Service Corp. { [ : 0.0579 0.0562 0.0532 0.0540 0.0472 ; f/alns Yankee Atomic Power Corp. U 'O.0208 0.0273 0.0274 0.0215 0.0263 Qaer Suppliers r 0.0336 0.0425 0.0000 0.0000 0.0000 TOTAL .t' $0.0460 $0.0533 $0.0553 $0.0541 $0.0562 i
. Incrzase/ Decrease b '
13.7 % - 3.6% 2.2 % 3.7% 2.0% {
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4 NEW HAMPSHIRE ELECTRIC COOPERATIVE, INC, ', . BALANCE SHEET ASSETS December 31 UTILITY PLANT: II 1986 1985 Electric Plant in Service [$. 78,612,606 - $ 70,187.252 Construction Work in Progress J Seabro'ok b108,299,256 102,295,387 Construction Work in Progress - Other s 1,586,791 2,265,375 Total Utility Plant [$188,498,653 $174,748,014 Accumulated Provision for Depreciation I' 19,374,546 17,595,401 Net Utility Plant !$169,124,107 $157,152,613 OTHER INVESTMENTS: Other Utility Property 169,605' $ 178,361 Investments in Cooperative Finance Corp. % b '_1,994,138 1,945,456 Deferred Compensation Funds ( 99,632 89,742 otal h P perty and Investments . 2,26 5 $ 2,21 , CURRENT ASSETS: 1 Cash - General I$' 1,614,670 $ 523,493 Cash - Loan Funds F 21,548 31,461 Accounts Receivable Net < 3,253,152 3,147,782 Materials and Supplies 1 1,375,244 1,395,536 Prepayments 613,424 985,993 Other Current and Accrued Assets 51,413 126,668 Tcmporary Cash investments 6,871,362 5,870,978 Total Current Assets + $ 13,800,813
$ 12,081,911 DEFERRED DEBITS:
Other Deferred Charges ~$ 13,182,565 $ 438,996 Total Deferred Debits l$ 13,1823 565 $ 438 t9_96 TOTAL ASSETS ($198172,860 $171J89,079 LIABILITIES December 31 EQUITIES & MARGINS: 1986 1985 Patronage Capital ($ 10,058,685 $ 7,506,390 l LONG TERM DEBT: Rural Electrification Administration ~$ 56,388,141 $ 51,751,025 ! Plymouth Guaranty Savings Bank 136,543 154,315 Cooperative Finance Corporation (CFC) 5,465,447 5,488,220 Foderal Financing Bank (Seabrook) 120,537,000 102,300,000 Total Long Term Debt $182,527,131 $159,693,560 CURRENT LIABILITIES: Accounts Payable ;$ 3,434,906 $ 3,220,671 Customer Deposits 252,934 221,431 Other Current & Accrued Liabilities 636,094 760,04_9 Total Current Liabilities i$ 4,323,934 $ 4,202,151 DEFERRED CREDITS: Other Deferred Credits .$ 1,463,110 $ 486,978 Total Deferred Credits $ 1,463M0 _$ 486,978 l TOTAL LIABILITIES $198,372,8_60 $171,88%079 ' I f
i. [ . NEW HAMPSHIRE ELECTRIC'COOPERITIVE, INC. i
" STATEMENT OF INCOME AND EXPENSE-It 7 e a g ..
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, , December 31' OPERATING REVENUES: . -[ -Ib[1986i ~1985 Residential Sales '
E.M 24,703,728 M
$ 23,697,762 Commercial & Industrlal Sales *fi.'1'2',080,3593 '
Street '& Highway Lighting' Sale's ' ' ~ 11 ,878,035 i- '
, .;236,607M ' 247,033 Rents From Electric Property py , , 445,715f } . 426,030 Miscellaneous Electric Revenues LQ _388,971 ' . 4 342,697 NH Franchise Tax Collection 373,946' 361,847 TOTAL OPERATING REVENUES I{$138 229,326J a $ 36 953,404 I
p p ,, OPERATING EXPENSES: k , Purchased Power l' IO S 22 ,939,478 L $ 24,295,033 - Transmission Expense Distribution, Operations & Maintenance Expense h 3,503l ' 9,486 !
'f1,960,560 1,883,403 Consumer Accounts Expense .
y '1,113,8,08 - 1,030,610 Administrative & General Expense Depreciation Expense [ }2,110,803' 1,954,413 i K 2,518,8731., 2,296,495 Tax Expense i 1,296,735 Other Expense h( 51,420,166: 56,163 44,043 TOTAL OPERATING EXPENSES j $132,123,354 $ 32,810,218 NET OPERATING INCOME f$y6,105,9722 * $ 4,143,186 f[ OTHER INCOME AND DEDUCTIONS: ! Interest income I;$r 535,5741 $ 695,678 income From Leased Property 35,542 Income From Job Work Sales h( ' l35,542. , 38,482 10,442 Miscellaneous Other Income Leased Property Expense
% 0 Job Work Sales Expense L (9,657) (9,482) b -(35 140) (9J3_6)
TOTAL OTHER INCOME AND DEDUCTIONS - NET $$/ 564,201 $ 722J44 INCOME BEFORE INTEREST CHARGES I 6,670,173 $ 4,865,830 t$ INTEREST CHARGES:
. interest On Long Term Debt lk14,039,117 $ 12,765,655 Amortization Of Debt Discount & Expense [h .' '148,980 8,275 Other Interest Expense Allowance For Funds Used During Construction (Seabrook, Unit 1)
[ (29,856) 57,549 7 (10,040 36_3) u _(8 770J3_6) NET INTEREST CHARGES IS ' 4,117,878 $ 4,060J43 4 NET INCOME ~ [$f 2J52J95 $ 804,887 L Capital Credits Allocated to Each Patron At Percentage Rate to Revenue h. 6.547 % 2.265 % Capital Credits' Assigned Accumulatively To End of Year i$ 10,058,685 $ 7,506,390
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NEW HAMPSHIRE ELECTRIC COOPERATIVE, INC.
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STATUS OF THE COOPERATIVE'S PARTICIPATION IN THE SEABRCOK NUCLEAR PLANT l The actual construction of Seabrook Unit 1 is complete. In October,1986, the Nuclear Regulatory Commission ("NRC") issued an operating license for Seabrook Unit 1 subject to certain conditions. In order to commence commercial operation of Seabrook_ Unit 1, it is necessary to conduct low power testing and satisfy l certain of the other conditions placed on the operating license. Fuel loading was completed in October,1986 and zero power tests are currently being conducted. Low power testing cannot.begin until the NRC makes certain findings with respect to on-site emergency preparedness. Furthermore, the NRC will not permit i operation at full power until radiological emergency response plans, including evacuation plans, are in place for . cities and towns within a ten mile radius.of the Seabrook plant. While the plans for New Hampshire have been submitted to the NRC, no such plans for Massachusetts have been submitted. The Governor of Massachusetts has stated his intention not to submit any such plans and to challenge the NRC's actions if the NRC grants a final approval of the operating license for Seabrook Unit 1 without Massachusetts' approval of evacuation plans Continued delays in the licensing process make it impossible for the Cooperative to determine when, or if, commercial operation will in fact occur. Commercial operation of Seabrook Unit 1 is necessary for the Cooperative to continue in existence.
' The Cooperative has executed an agreement with Public Service Company of New Hampshire, a 35.56942% Joint owner of Seabrook U. nit 1, whereby the Cooperative may, at its option, sell back to the Public (
Service Company of New Hampshire any portion, up to the Cooperative's full 2.17391% ownership share, of j Seabrook Unit 1 capacity and related energy production at the Cooperative's full cost, which includes a provision for depreciation on the Cooperative's cost-of-service for Seabrook Unit 1. The agreement will begin on the date of commercial operation of Seabrook Unit 1 and will end ten years following that date. The Cooperative's share of total costs for Seabrook Unit 1 is estimated to become approximately $123 million, assuming the plant is placed in service no later than January 1,1988. This estimate of total costs includes an allowance for funds used during construction ("AFUDC") of $45 million and an investment in nuclear fuel of $6 million. As of December 31,1986, the Cooperative has approximately $26 million of unadvanced loan funds from the Federal Financing Bank. These loan funds are available to finance the additional $15 million of Seabrook Unit 1 expenditures expected to be incurred during 1987. These anticipated l expenditures relate principally to AFUDC and maintenance costs. '
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l l AUDIT REPORT The annual audit of records was made by Ernst & Whinney, Two Wall Street, Manchester, NH 03101. Copies of the audit report are on file with the New Hampshire Public Utilities Commission, Concord, New Hampshire, the Rural Electrification Administration, Washington, D.C. and the Cooperative Office. I Plymouth, NH. 1
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