ML20236A575

Santee Cooper Annual Rept 1988

ML20236A575
Person / Time
Site:	Summer
Issue date:	12/31/1988
From:	Holder D, Mescher W SANTEE COOPER
To:
Shared Package
ML20236A572	List: ML20236A570 ML20236A575 ML20236A577
References
NUDOCS 8903200006
Download: ML20236A575 (60)

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Corporate Statistics Fisca1 Year 6/30/88 6/30/87 6/30/86 6/30/85 6/30/M 6/30/83 6/30/82 6/30/81 6/30/80 6/30/79 TotalUtility Plant-netincluding nuclear fuel (at year end)

On thousands of dollars) 1,749,244 1,727,848 1,745,892 1,773,788 1,779,161 1,670,571 1,467,710 1,205,200 950,628 759,839 Bonded Indebtedness (at year end)

On thousands of dollars) 1,9M,110 1,998,105 1,938,230 1,919,750 1,788,750 1,796,545 1,735,850 1,261,420 990,100 917,690 Operating Revenues On thousands of dollars)

Residential 53,658 52,433 46,529 41,414 35,572 28.098 27,121 21,949 17,639 15,255 Commercial 53,481 50,998 46,709 39,268 32,865 28,853 28,145 22,452 18,835 16,822 Industrial 150,961 139,207 139,681 152,549 132,833 124,015 131,189 99,551 40,417 35,131 Military 17,624 18,221 18,000 15,649 13 978 12,893 12,487 9,225 6,9M 6,567 l

Municipal 1,873 1,675 1,792 1,575 1,254 1,029 955 704 587 546 Wholesale 210,087 212,891 198,826 177,906 140,211 126,104 105,994 90,971 65,997 69,975 Miscellaneous 4,296 4.634 3,463 2,261 1,986 1,716 1,840 1,4 48 1,364 1,401 Total 491,980 480,059 455,000 430,622 358,699 322,708 307,731 246,386 151,793 135,697 Operation & Maintenance Expenses Charged to Opentions On thousands d dollars) 287,268*

273,646 260,955 259,233 236,389 218,976 226,320 187,890 109,997 103,928 Payments in 1.ieu of Taxes Charged to Operations On thousands of dollars) 3,055 2,390 2.176 1,920 1,750 981 565 966 928 726 hyments to the Etate Charged to Reiwsted Earnings On thousands a' dollars) 3,003 2,003 1,901 1,700 1,600 1,500 1,400 1.300 1,300 1,200 Net Operating Revenues Available For Debt Service On thousands of dollars) 227,436 229,568 219,072 195,899 136,186 118,230 94,219 66,503 46,732 35,958 Reinvested Earnmgs' On thousands of dollars) 39,129 40,290 30.106 45,948 50,515 41,057 53,131 29,330 21,406 10,791 Dnt Service Coverage:

Expansion Bonds 1,57 1.56 1.47 1.61 1.83 1.69 2.18 1.90 2.41 2.12 Pnority Obligation & Expansion Bonds 1,55 1,54 1.46 1.59 1.78 1.65 2.07 1.79 2.14 1.88 Kilowatthour Sales On thousands)

Residential 830,620 804.1M 720,438 672,865 646,467 559,929 541,522 536,461 472,495 443,186 Commercial M O,941 892,123 812.520 738,430 688,748 595,724 569,474 549,737 511,726 506,243 Industrial 4,928,910 4,716,882 4,557,796 4,501,626 4,232,994 3,910.370 4,019,632 3,952,408 1,890,415 1,788,087 Mihtary 432,5M 440,978 443,064 405,802 392,309 373,403 350,127 313,258 306,582 316,537 Municipal 31,639 28,651 30,500 29,571 25,448 20,236 17,841 17,572 17,506 16,966 Wholesale 4,912,0M" 4.729,540 4.214,322 3,878,087 3,798,454 3,422.275 3,351,388 3,470,082 3.099,574 2,881,781 Total 12,076,698 11,612,328 10,778,640 10.226,381 9,784,420 8,911,937 8,879,984 8,869,478 6,298,298 5,952,800 Number of Customers (at year end)

Residential 70,461 67,435 63,895 59,755 55,610 50,255 46,310 43,462 40,053 38,058 Commercial 14,627 14,210 13,733 13,553 11,601 10,583 10,129 9,754 9,236 8,859 Industrial 26 27 26 26 26 25 25 25 24 21 Military 3

3 3

3 3

3 3

3 3

3 Municipal 305 305 372 342 329 300 224 216 212 207 Wholesale 4

3 3

3 3

3 3

3 3

3 Total 85,426 81,983 78,032 73,682 67,572 61,169 56,694 53,463 49,531 47,151 Residential Statistics (average)

Kiloutthour Consumptirm/

Customer 12,013 12,195 11,591 11,6 %

12,240 11,708 12,093 12,875 12,151 12,097 Cents /Kilowatthour 6.46 6.52 6.46 6.15 5.50 5.02 5.01 4.09 3.73 3.44 Generating Capabihty (year end)

(megawatts) 2,780 2,780 2,759 2,764 2,764 2,265 1,965 1,965 1,736 1,456 lbwer Requirements and Supply (kilowatthours in miHkms)

Generation-flydro 3 42 519 413 485 628 694 522 414 824 680 Steam 9,808 9,455 8,4 72 8,442 7,287 7,840 8,492 8,620 5,800 5,313 CombustionT rbine 1

1 2

18 31 10 6

Nuclear 2,327 1,744 1,871 1,516 1,931 494 Total 12,478 11,718 10,756 10,444 9,848 9,028 9,032 9,065 6,tul 6,029 Purchases Net interchanges, Etc.

60 229 353 227 355 333 380 371 193 429 Total 12,538 11,947 11,109 10,671 10.203 9.361 9.412 9,436 6,827 6.458 Calendar Year 1987 1986 1985 19M 1983 1982 1981 1980 1979 1978 Terntonal hak leads (megantts) 2,123 2,123 2,006 1,824 1,810 1,685 1,7M 1,5M 1,352 1,231

• Remvested earnmgs referred to abwe and on pages 44, 45, and 46 reflect revenue avadable to meet Santee Conser's Bond Indenture and Resolutum requirements.

"Begerung a hecal Year 1988 kwh sales to Cenual b Nde kne k>sses.

FinancialSummary Since Santee Cooper was cre-Source ofincome ated in 1934, a net amount of

$2,229,116,000 has been invested in

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its production, transmission, distribu.

3.:

gy F

tion, and general plant facilities.

These capitaladditions have been

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financed through reinvested earn-

'N e

S i

ings, issuance of electric revenue

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9 bonds and notes, lease contracts, and if g-a federal grant-in-aid of $34.438,000.

Santee Cooper's net earnings 7.-

before taxes since the first power was fn

e.g.

generated in 1942 total $478,916,000.

Payments inlieu of taxes have been ut noHncome made to the state of South Carolina totaling $31,429,000, and to the coun-ties and municipalities within our s.

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service territory totaling $19,324,000.

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He remaining net earnings of $428,163,000 have been reinvested g'

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in the Authority.

i Revenue bonds totaling

$3,494,899,000 have been issued e.

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[g; since the creation of Santee Cooper.

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Bonds which were originallyissued in 1949,1971,1976, and 1981 Series B have been advanced refunded, de-AverageResidentialConsumption feased, and are no longer outstanding 2,000 4,000 6,000 8,000 10,000 12,000 14,000 with the exception of the 1981 Series B g7gpg

$ $ $.$, [ h [ [ $ f k.j [ O M S) bonds. Also, portions of the 1980 Series T

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h A,1981 Series A & C,1982 Series A &

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Q p p! L q +.* f f. g.., g.. 1 B,1982 Refunding, and 1985 Refunding ex m

( N(jjkNdt[h[%$N6T.dhh have been advanced refunded and EI bhh[bNhNhhhddg gyg defeased, but are still outstanding.

Allrefunding bonds had an out-standing balance of $1,399,434,000 at AverageResidentialCost the time they were refunded. Principal C"# 87UfN 5 5.5 6

6.5 7

7.5 8

payments on all bond issues, including qewg the issues refunded, total $131,355,000.

jrf..;$[

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w yn Outstanding bonds as of june 3n,1988 g

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.: T% Tfiji totaled $1,964,110,000.%e average l

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iddNk,$i annual interest cost on these bonds is q

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$m klN

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As of June 30,1988, generalim-i "r"v" *""' '""d * "* ""'"d '"

Oa tiea ia er se Os teeco aer

$48,131562 in addition to debt reserve, debt service, interest, and special funds

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s mm onegenemtion to tite, '. '

next,SanteeCooperkontinues'.

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. to meetcorporateidmmitnients tocustomers;employeet

investors,andco,mmunities' :-

whbri,tceseme.'litese commitments &forproviding.

s,publicpoweroumedbythe.,

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(

f Table ofContents FinancialSummary

.l Horticulture -

- 27 CorporateStatistics -

il PropertyManagement

-27 Executive Summary.;

.4 Program for Employee Participation.

-28 Comparative Highlights --

5 Employee Relations

-30

(

Energy Sales

-8 Occupationallleahh.-

30 Distribution.

10 Training and Development -

-.31

'j EnergyManagement.

11 Safety 1-

--31 i

Generation and Imad Growth -

- 12 Corporate Forecasting. Rates, and Statistics.. 31 Nuclear Operations.

.12 ManagementInformation Systems.

--32 System Planning 14 Accounting and Finance -

34 Engineering and Constmetion Management.14 Schedule of Bonds Outstanding -

-35 Performance and Environmental Services..15 Schedule of Refunded Bonds:

..38 Production =

15 Applications of Revenue.

40 Generation and Transmission System -

15 FinancialStatements 41

. Power Ganerating Stations.

16 Auditor's Report.

--41

PowerSupply 19 Board of Directors, Advisory Ibard, Design Engineering..

. 19 and Management -

- Back Cover GeneralConstruction -

20 Transmission Operations -

- 22 Project Management.-

22 Reliability -

- 22 Corporate Communications.-

. 23 Marketing.:

- 23 db 1g (tj Flood Control

= 24 Environmental Resources..

. 26

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Mosquito Abatement.

.. 26 s

Water Quality Management.

. 26 s ;_

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.g Aquaculture.

-- 26 tdiste

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l ErecutiveSumman 4

We are pleased to report that revenues were up about 2 percent.

Santee Cooper had a very productive, These increases occurred primarily very successful year, in spite of some because of weather conditions, steady of the most serious challenges we customer growth, and a retum to full -

have faced in our 50-year history, production output by Macalloy, our Santee Cooper has been able to third largest industrial customer.

maintain its corporate commitments to In terms of energy consumption, its customers, employees, and bond-this represents a 3 percent increase by I

holders, as residential customers,5 percent by i

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"Q wellas to the commercial customers,4 percent by

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communities it industrial customers, and 6 percent by hw g

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Central Electric Power Cooperative w

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vironment, and and the municipalities of Bamberg W. + 4 gp v 77 the people and Georgetown.

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- $4 M ofSouth Of particular significance also is

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Carolina, the continued full production output 1

~W The most and full employment by Alumax, serious chal-Santee Cooper's largest industrial lenge this year, customer.

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@Q of course, was

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which pro-Urowth in our number of cus-posed the sale tomers was also steady. A total of g-k of Santee 3,026 residential and 417 commercial Cooper. That bill customers were added, which repre-was fortunately rejected after the sents increases of 4 and 3 percent, Budget and Control Board gathered respectively.

facts and figures that showed legisla-All of thisis a reflection of the tors the economic value of Santee stability and continued economic Cooper to the people of South Carolina.

growth within the areas served directly lower power rates, more jobs, and in-by Santee Cooper and by the 15 creased economic development were electric cooperatives which are mem-the factors which convinced our bers of Central.

political leadership that continued op-In the area of economic develop-eration of Santee Cooper is in the best ment, putting together a joint program interest of the state.

with Central Electric Power Coopera-tive continued. No longer are we l

competing with our electric coopera-booking at the bottom line, tive customers, but we are now operat-Santee Cooper experienced one ofits ing as a unified team, working to best financial years. Even after rate attract the new industries and new relief of $7.5 million to Central Electric jobs needed for South Carolina.

Power Cooperative, reinvested earn-We are pleased that Santee ings were only slightly under the Cooper has been able to maintain a previous year.

stable rate base, allowing our custom-Over on the production side, kik>-

ers to benefit by having the lowest watthour sales of electricity increased costs for electricity in the state. While by about 5 percent and our electric this is an economic benefit to them,it o _ ___. - - - - -.

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_ Inits1934enablinglegista,

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, atablishedbytheGenemi ~

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AssemblytoopemteJbrthe-bendtoflitepeopleofSouth 4."

p Camlina,1brtheimpmve.

' ment'oftheirhealthand

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pmsperity.."In thkspirit of,

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Cooperseekstefuh111that

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thebestinteratofits cus-

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>Erecutive Summaryy 6

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Santee Co_oper another tie to the

. 'We're also confident enough in our -

- Southem Company, abilities to forecast that next year's Also completed was the upgrad-

. progress will be even better.

ing of the 46 kV system in the Aiken This string of successesis not l

area to 115 kV, improving service happenstance or due to serendipity. In ;

_4 reliability of the cooperative substa-our opinion, it's due to on-target plan-

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tionsin that area.

ning coupled with the efforts of a dedi

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In our Hony-Georgetown Divi-cated high caliber work force commit-sion,12,000-volt feeders were installed ted to bringing those plans to success-to provide improved service, and our ful completion.

tree trimming operations were ex-It is also the product of a board

. panded to reduce storm willing to support and contribute to a -

1 outages caused by -

corporate culture in which innovation

,i

- downed trees and and change are notjust tolerated but "Ik arelpfedsed to

. limbs, expected.

j repwt that irit1mut This resourcefulness has paid off 1

for Santee Cooper, its customers, and -

antee Cooper's the people of South Carolina That's -

reservation or economic development evident when one observes growth s

equivocation, efforts were espeially and development occurringin our l

gyfpg gyppf 3 successfullast year service area, the reliability of our with the addition of two electn,e system, and our low rates.

I gnaneial condition

. newindustrial custom-Also significant are the awarils and I

is better //lan it fas ers, the new Union recognitions won, and especially, the

?

Carbide plantin

' status which Santee Cooper and its ever been. "

Camden and Allied Sig-personnel hold all across the country.

nal, the first customer A growing and healthy customer

]

' in the Atlantic Center, base, outstanding employee perform--

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our new business and ance, strong and effective manage-industrial park near Conway.The ment, and the professionalleadership national publication, Site Selection and support of our board have made

' Handbook, named Atlantic Center one Santee Cooper what it is today-the of the top ten economic development fourth largest public power utility and projects of 1987.

one of the best electric utilitiesin Work began on reinforcing the the country.

I Pinopolis West Dam against damage

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due to potential earthquakes.

[U-o We are pleased to report that S/f without reservation or equivocation, Dwight A. HWu Santee Cooper's financial condition is Chairman better than it has ever been. For the past 12 years, Santee Cooper's per.

gg g,

fonnance has been better than the previous year. And, factoring in the

[,$fmhu rate relief given to the electric coop-

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eratives, this year is no exception.

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e is also a tribiith to the dedication of our

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• ymplayees and t.he efrective%:anage-Comparative Highlights ment of our t escurces. It is significant 87

C""!

to note that'we have not had a rate

increase since 1985 and do not project Fina ncial +ouwos n' now.,

having to make any adjustments.

T otai Reienues a ns.ome si6 599 605 34o 22 n before 1991.

ro1 % nses g interesictw ges 304.907 494 739

.p1 Our financial rating during' the, otne, oegua,ons u o,

maj um o l

year also maintained its strength in Costs to be Recovered e 27 432 28 921 5t 4

spite of the challenge faced within thei trona utug Revenue South Carolina Legislature. Both -

Reevested tarnings 39 129 ao 290

-29 4

. Moody's and Standard and Poor's Debt senace coverage - Pnons &

reaffirmed their confidence in Santee;

! *"S'"" 8""as

[

w i 55 a sa 06

""b' ' F 4"'tY " "

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'2 Cooper by. maintaining A1, A+ bond.

ratings

' Statistical 85 3h3 81.99) 42 An important factor in maintain-Retail Custo(ners Servpd ing these ratings has been SanteeI Average AnnualResidentral Cooper's consistent financial success C "6"'nptgn(KWH!

12 195 '

-15

?

13 013 CoM during the past several yeaiq.Two AjagR 6 46 6 52 9

pnmary measurements of this success

. Energy $hles (KWH) 12.0/6.698 11 514,838 49 are debt service coverage and debt g

. ~ ms 2m o

eqmty ratio. Both of these have shown 1m 27.

CALEllDAR YEAR improvement during the past year, Nrntordi Peak Demand iMW) 2123 2.123 00 eyond the measurements of

~

e revenueceustomers served, bond ratings, and reinvested earnings, some should be open to the public within L

major progress and improvements oc-the coming year. -

curred during the past year.

We may now have atleast a padial

. In suppod of conservation, the.

solution to our" weeds in the lake" j

electric cooperatives and Santee problem through the use of fish from j

. Coope: expanded our" Good Cents" China called the White Amur.These i

program, which advises and assists fish grow up to 40 poundsin size and i

customers in their efficient use of daily eat up to four times their body

-[

' electricity. It is receiving excellent weight. last year approval was ob-suppod from architects, builders, and tained to release sterile Amurin our home buyers.

lakes, which willbegin next spring.

In cooperation with the South Our electrical system reliability Carolina Department of Parks, Recrea-and reinforcement was improved

' tion & Tourism, work began on one of significantly during the past year.To j

the historical treasures of South provide a strong source of power near

. Carolina-the restoration of the the heavily loaded Hilton Head area, a

Moncks Comer section of the canal 230 kV transmission line was con-builtin the 1790s to connect the stmeted across the Savannah River to Santee and Cooper rivers. This park, a 500/230 kV Santee Cooper-owned with its boardwalks and nature trails, substation in Georgia, which gave

m EnergySales 8

f j(

customers was 6.46 cents,.9 percent Mt the end of the fiscal year, less than the previous year, and 12.8

Santee Cooper was serving 85,393 percent lower than the national.

residential, commercial, and other average.

retail customers located in Berkeley, The average cost of power for Hony, and Georgetown counties. This Santec Cooper commercial customers.

was an increase-of 3,443 or 4.2 percent was 5.68 cents per ldlowatthour, down over the previous year. Of this in-

.7 percent from 1987 and 20.0 percent crease,3,026 were residential and 41',

lower than the national average.

were commercial. This compares witl.

Industrial sales were 4,929 growth in 1987 of 3.540 residential and igawatthours, up 4.50 percent over 410 commercial.

' previous year. The average cost of Sales to these retail customers tr to industrial customers was 3.06 i were 1,803 gigawatthours, up 4.5 per kilowatthour,3.7 percent percent over the previous year. This gr er than the previous year and con > pares to last year's growth in 36.1 gercent lower than the national energy sales of 10.3 percent, average.

The average annual consumption Sales to U.S. Air Force bases at of electricity by Santee Cooper resi.

Che-leston and Myitle Beach and to dential customers decreased to 12,013 the Charleston Naval Station de-kilowatthours,1.5 percent less than creased 1.9 percent from 441 gigawatt-the previous year and 28.9 percent '

hours to 443 gigawatthours.-

greater than the national average.

Sales through Central Electric The average cost per kilowatt.

Power Cooperative, Inc. to its 15 hour1.736111e-4 days <br />0.00417 hours <br />2.480159e-5 weeks <br />5.7075e-6 months <br /> for Santee Cooper residential member co-ops increased 6.0 percent 1

to 4,762 gigawatthours. ' Centralis j

Energy Sales Santee Cooper's largest single cus-i

' Fixal Year 1988 (Am7D tomer. The electric cooperatives distribute power to more than 300,000 g

y s.

customers in 35 counties of the state.

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Sales to the municipalities of J

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Bamberg and Georgetown increased 2.3 percent.

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i Fiscal Year'1987(Am7D FuelGenerating Cost i

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1 Commitments to Our Customen Distribution The installation of the Supervi-sory Control and Data Acquisition '

Santee Cooper provided distri-i (SCADA) master station was com-pleted, which allows 20 of the bution and retail sewice to 85,393 division's 40 substations to be moni-customers in Berkeley, Hony, and tored and controlled remotely. -

Georgetown counties, compared to The division continues to digitize last years totalof 81,950, for an in-the computer-based mapping of sub-

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crease of 4.2 percent. Energy sales for stations, which improves access, the residentialcustomers were retrieval, and storage of mapping data.

1,803,200 megawatthours with rev&

This data base is now over 600 mega-1

.- memctmcan eatroa nue of $109,011,874 for the year, bytes, representing approximately 50 weum esaosintormans from the data recorder on a customes men osm a "I le F ony-Georgetown wision percent of division sewice area.

$/ein N E S, sewes the municipalities of Myrtle In addition, the division uses a j

reaa mmuy usy ns Beach, Conway, Lons, North Myrtle new computerized weatherindexing

$Er$u$aNeace Beach, Surfside Beach, Pawleys system to monitor approaching mmute mMrval durgiday-Island, Atlantic Beach, and BriarcliiTe stonns. This system improves the line Acres, along crews' ability to restore sewice quickly.

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with the unm-Continued rapid growth in the j

corporated division required additional office C

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space. A new retail ollice in Garden Arcadia Shores, City opened in mid-summer. The 4,125 Garden City, square-foot facility includes customer

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' MurrellsInlet-service, area engineering, and euergy and Waccamaw management offices. A 3,600 square-N Neck.

foot operations center forline crew The Hony-personnel and a materials warehouse

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Georgetown were also completed at the Garden 5:

Division City site.

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service to 892 provided new Santee Cooper, along with Berkeley and Hony Electric Coopera-i lf il i

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tives, began participating in the Gate-homes,1,036 keeper Program. Meter readers, condominium cashiers, customer service representa-l teonye vane, units,131 tives, and other employees who have erva uaurma and mobile homes and lots, five hotels-n swe w a urute day-to-day contact with customers w e present ane cencrat four shopp.mg centers, one sc 100, were trained to recognize ceitain pyggy four churches, and 212 commercial danger signals in the elderly and customers. Underg,round facilities eumme c<muonn on contact the appropriate community

'Sfdf$n%E were installed to provide future service s

agency.

$0Ep]"yd t 1,300 residential single family

%e Berkeley District-The inmecmuten m tnat homes and 210 mobile homes. Substa' Berkeley District provided service to tion facilities and distribution circuits 106 residentiallots hi four new were installed to provide 10 new main Berkeley Locaty subdivisions: Lim-I feeders to meet system growth.

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Commitments to Our Customm 12 l

Load and Marketing Research Nuclear Operations program.

Generation and Load Growth h'V*C'S"mmN"'*'

Station, an 885 megawatt nuclear plant Sa.

jointly-owned with South Carolina ntee Cooper facilities, which Electric & Gas Company, continued to

' include one-third ownership of the be an excellent performerin FY 88 V.C. Summer Nuclear Station, gener-with a capacity factor of 90 percent.

l ated 12,477,787 net megawatthours of During the year this unit received top electricity this year.This was an perfonnance ratings from both the

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~ increase of 759,351 megawatthours or.

Nuclear Regulatory Commission and 6.5 percent over last year.

the Institute of Nuclear Power Of the total power generated,78.6 Operations.

percent was produced using coal,18.7 For FY 88, Santee Cooper's one-percent by nuclear, and 2.7 percent by third share of the Summer Station hydroelectric. The peak hourly provided over 2.3 billic,n kilowatthours demand for the year was 2,215 of electricity for Santee Cooper cus-megawatts, which occurred on June tomers, or approximately 18.7 percent

23. This was an increase of 4.3 percent of the company's total electrical sales.

over FY87.

The station's next refueling outage is scheduled for fall 1988.

There was no refueling outage during FY 88.

New retad offices in North

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Myrtle Beach and Garden 3

City.shown here prede greater convemence for

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Customers arid impr0Wd tacA14e3 for s 5rvice and hPe Cre'N OE63t,0n pl lh0Se areas u

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Estates, and Tolly Subdivision. Also, converted to heat pumps.The total service was provided to 38 new apart-amount loaned since the initiation of ment units, and underground service the program is $1,663,645.

to three new commercial customers:

Residential customers began Wal41 art, Hardee's, an? Cumble receiving direct mail notification of the Plaza. Service was supplied to the Old availability of free Residential Conser-Santee Canal State Park, currently-vation Service (RCS)

. under constmetion, with 5,000 feet of energy audits.The underground primary cable and four audits provide cus-pad mount transformers, tomers with individu-

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alized infonnation on EnergyManagement their homes' eneruY

'3 requirements and rec-commendations for

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ood Cents, a national program improvements.

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for energy-efficient, all-electric homes, Energy audits

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is a conunitment to help Santee were provided for 576

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g' etliciently utilize electric energy while commercial custom-

. Y focusing on an overall corporate ers. Ioad calculations I

demand-side planning strategy.

and thermal design

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i Program award was given to 120 electric heating and

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homes which were designed and built cooling systems were

~:,M so that owners use less energy and provided for 624 resi-

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99 commercial cus-E; M

In addition, the second phase of tomers.

the Good Cents Program, the Good Santee Cooper's Energy Educa-wmece Cents Improved Home Program, was tion Program began a nat.ional electn.-

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developed, with reduced rates effec-cal safety promotion, " Louie, the Light-7"ggy[]

tive July 1988.

ning Bug," during the school year. The m -ums+ce Santee Cooper and 14 coopera-program was presented to more than 7 % %U"j~

tives and municipalities are participat-9,500 students in 27 schools in gg"ly7,7 ing in the Good Cents Program.

Berkeley, Hony, and Georgetown w-Santee Cooper manages the Good counties.

Cents standards and rates associated More than 40,000 audio-visual

- with this program.

and printed energy education materi-(lood Cents residentialloans for als were provided to students and energy-efficient home improvements teachers in our service area.

were $367,294 including $356,894 for The Energy Management and installation of ne,v electric heat pumps.

Rates Divisions received the South Twenty-four fossil fuel and 26 electric Carolina Energy Achievement Award resistance heating systems were for development of a state-of-the-art i

1 1

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Commitments to the Corrmunities We Serve N-System Planning major modifications to the cooling tower were completed during a planned three week spring outage, ystem Planning developed The concrete tower stmeture was plans to construct additional transmis-completely emptied, and 65 truck Qggges sion facilities and expand the existing loads of new fill material, plus new 230 kV system in the Hony-George-nozzles and drift eliminators, were munes in nemus

$NMr$6ns town area to meet customer needs, installed.

$,70g73' Also at Cross, modifications were 1=l00" Engineeringand made to the isolation dampers of the COMStruClion Mangagement flue gas desulfurization system (FGD) scenm m ru ecue' to permit mist ehmmator cleamng without reducing generation.

ollowing success of a pilot in addition, steam generator c

project at Cross reheater tube failures were traced to a

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Station last year, design error by the boiler vendor.

11 state-of-the-art Twenty-five percent of the finishing re-electronic coal heater assemblies were modified and scales were in-all of the superheater girdling tubes l.

stalled at Cross, were removed, all under warranty.

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g Jefferies, and Flow baffles were installed by the Winyah Stations contractor to achieve a more unifonn to reduce main-flue gas through the fumace.

L tenance costs Following last year's successful

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and increase re-pilot project with Jefferies Unit 4, Unit i

liability and accu-3 was equipped with two 1,500 horse-racy of the power induced draft fan motors with 4

weighing pro-adjustable speed drive (ASD) units.

1 cess. Significant This eliminated fan vibration problems improvement is and lowered electric power consump-l

, - g, a f expected for fuel tion. ASDs will be installed on large y'

stockpile electric motors at other stations.

accounting.

Also at Jefferies, improvements A dry fly ash were made to the coal yard drainage u n w o un e n u ce w cm,ammmm naca transport system was added for system, and a boiler water clarification

%%TMZ$%7 Winyah Unit 1, allowing it to make use system was purchased.

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f the existing Units 3 and 4 storage Special project activities included wens o. wee and loading facilities. 'lhis resulted in continued work with local authorities the sale of the high quality fly ash pro-on a regional water system in Berkeley duced by Unit 1.

and Dorchester counties and a prelimi-To improve heat rate and prevent nary review of a waste-to-energy generation curtailment during the facility in Hony County.

summer months at Cross Station,

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' Power Generating Stations Jefferies Hydro Generating Station Santee Spillway Generating Unit location: Pinopolis, SC

/wcation: Pineville. SC Fuel 7)pe:Ilydroekctric Fuel Type:ilydmelectric Generating Capability: 128 megawatts Generating Capability: 2 megawatts Construction Cost (excluding interest):

Construction Cost (excluding interest):S.01 million

$58.6 million / $458 per kw.

Began Commercial Operation: 1950 Began Commercial Operation: 1912 FY1988 Generation:13 million kwh '

F1.1988 Generation: 196 million kwh Fuel Consumption -FY1988. none Fuel Consumption -FY1988: none Fuel Cost-FY 1988: none FuelCost-FY1988: none Fuelcost per kwh: none Fuelcostper kwk: none 1%ncipalFeatures 1Iydro unit with sman turbine Principal Features: Jefferies flydro has four turbine generator was inqalled to generate power using the generators which were initial units for the Santee required discharge of 515 cfs into Saatee River. Unit Cooper flydro Electrk and Navigation System in is operated remotely from Jefferies Steam 1942. Powerhouse is h>cated at base of lake Generating Station. Spillway is used in utility's flood Mouhrie, with water level 75 feet above Tail Race control program for releases of water down Canal. Singlelift kick provides boat passage between Santee River, Cooper River and Santee Cooper lakes. Water source is cumulation of rivers and streams draining 15.000 Hilton Head Combustion Turbines square mile Santee River llasin Watershed, which location:llilton llead Island, SC extends through the central and upper part of the Fuel Type: Oil state into western North Carolina.

Generating Capability:

Unit 1 - 20 megawatts Gralnger Steam Generating Station Unit 2 20 megawatts locatiore Conway, SC Unit 3 57 megawatts Fuel Type: Coal Construction Cost (excluding interest):

Generating Capability: Units 1 & 2 - 170 megawatts Unit 1 S 2.7 million /S135 per kw Construction Cost (excluding interest):

Unit 2 S 2.2 million / S110 per kw S 29.2 million / S172 per kw Unit 3 S 9.8 million / S172 per kw Began Commercial Operation: 1966 Began Commercial Operation:

fY 1988 Generation: 340 million kwh Unit 1 197'l FuelConsumption -IY1988: 143,352 tons of coal Unit 2 1974 Fuel Cost -IY 1988: $5.776,988 Unit 3 1979 Fuelcost per kwh: 1.700 cents FY 1988 Generation: 577,000 kwh PrincipalFeatures Grainger Steam Generating Fuel Consumption - FY 1988: 132.219 galluns Station was constructed by and is owned by Central fuel Cost-fY1988: $118,941 Electric Power Cooperative,Inc. with funds received Fuelcostperkuhr 20.614 cents through a Rural Electrification Administration h>an.

Principal Featurcs: llilton llead Combustion The plant is operated and maintained by Santee Turbines were added to system to assist in meeting Cooper, which is making payments on the long-term growing peak load demand, particularly on most REA loan. When the loan is paid off Santee Cooper southern end of Santee Cooper's transmission ill maintain ownership of the station.

system. Units also provide 97 megawatts of backup w

emergency generation for the barrier island resort community if it shouki be cut off from the mainland power supply by a hurricane or other severe weather.

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Ltinues in the following areas: PCB Environmental Services Management, Waste oil hicinerationc Solvent and Paint Waste Recycling and Y

Disposal, Underground Storage Tank -

E he Performance Seivices group Monitoring, Ground Water Monitor-

' conducted thennodynarnic perform-l ing, and Spill Control and Counter -

ance tests on five generating units; op-measures.

' erating heat rate tests on nine'generat-

.ing units; and turbine enthalpy tests on?

Production several generating units. Component

' tests were conducted 'on equipment

(

i such as air heaters, boilers, and wantee Cooper's generating stations perfonnance improved both in

cooling towers.

i Anewcomputermodeling efliciency and availability last year. A record was set with eight of the coal-program was used to analyze the lgenerating unit themlodynamic.

fired units pmviding over 90 percent system for efiiciency. The extensive availability. The national average is ap-test results were publishedin final proximately 83 percent. Santee repolts to document' unit heat rate.

Cooper's efficiency improved 1.8 The information was used to improve.

percent, which represents $3,175,949

' unit efficiency, predict and plan unit in coal savings.

(Continuedon page19)

' maintenance, determine' which units

are the most economical to oper-ate, and calculate precise -

Generation and

costs for generating:

Transmission System

'j electricity.

The Environ-mental section per-formed numerous ana-

,lytical tests, such as boiler

= gas tests for particulate matter,

~ ulfur dioxide, and nitrous oxide s

emissions. Tests were also con-ducted to detennirie pollutant levels in wastewater, sediments, Myrtle seach

< soils, hazardous wastes, solid wastes, 7

H fused oil, mineral oil, and drinking water. Environmental seminars were conducted for several employee

' groups to educate them on state and federal regulatLns and on how they cimpact operations.

' The community right-to-know

and chemical inventory programs are Hilton Head now in place, and administration con.

l

Power GeneratingStations 18 FY 1988 Generation: 626,00I) kwh fY 1988 Generation: 3.4 billion kwh Fuel Consumption - FY 1988: 149,040 gallons oioil Fuel Consumption - FY 1988: I.306,090 tons af coal fuel Cost-FY1988: $113,428 FuelCost FY1988:863.180.844 Fuelcost per kwh:

18.119 cents Fuel cost per kwh:1.842 cents Principal Features: Myrtle Besch combustion Principal Features Cross Station has the largest turbines were instalkxl to help meet extraordinary single unit in Santee Cooper's generating system. It peak demands resulting primarily from summertime islocated between lakes Marion and Moultrie. A-population explosion along Grand Strand resort area.

unique feature is the adjoining Aquacuhurt Center..

Units are presently used for peak kiad generation.

with a two andene-half acre greenhouse which operates using residual heat from the station's cooling cycle.

. Summer Nuclear Generating Station location:Jenkinsville. SC St. Stephen Hydro Generating Station Fuel Type: Nuclear location: St. Stephen. SC Generating Capability:

Fuel Type: ilydrocketric 295 megawatts (1/3 of 885 megawatts)

Generating Capability:84 megawatts Constmction Cost (excluding mterest):

Construction Cost (excluding interest):

S336.0 million / $1,139 per kw

$63.7 million / $758 per kw Began Commercial Operation: 1983 Began Cennmercial Operation: 1985 FY 1988 Generation: 2.3 billion kwh FY Hw8 Generation: 131 million kwh FuelCost FY1988: $11.179.801 Fuel Consumption -FY198& none l

Fuel cost per kwh:.480 cents Fuel Cost-EY 1988:NA Principal Features: Santec Cooper has one-third _

Generation cost per kwh: NA share of plant which is joimlycwned with South PrincipalFeaturer St. Stephen Power PLmt was Carolina Electric and Gas Company. SC1%G constructed and is maintained by the U.S. Army operates and maintains plant. When unit was Corps of Engineers as part of the Cooper River constructed, it was the first joint nuclear project in Rediversion Project. lt is operated remotely by the Southeast between public and private utilities.

Simtee Cooper from the energy control center in Moncks Corner.The Rediversion Project was Cross Steam Generating Station designed to reduce the sihing of Charleston liarbor.

location: Cross. SC With its operation, water previously discharged Fuct Type: Coal through the generating turbines at the Pinopolis j

Generating Capability: 520 megawatts Power Ifouse is rediverted through the St. Stephen Construction Cost (excluding interest):

facility and discharged into the Santee River.

S363.7 million / 8699 per kw l

Began Commercial Operation: 1984 l

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Jetteries Steam Generating Station Began Commercial operation:

location: Pinopolis, SC Unit 1-1975 fuel 7)pe:

Unit 2-1977 Units 1 & 2 Oil Unit 3 - 1980 Units 3 & 4 Coal Unit 4 - 1981 Generating Capability FY1988 Generation:

Units 1 & 2-92 megawatts.

Unit 1 1.7 billion kwh Units 3 & 4 306 megawatts '

Unit 2 - 1.6 billion kwh Construction Cost (excluding interest):

Unit 3 - 1.0 billion kwh Units 1 & 2 S 15 7 million / S171 per kw Unit 4 884 million kwh Units 3 & 4 S 54.8 million / $179 per kw Fuel Consumption -FY1988:

Began CommercialOperation:

Unit 1 - 630,795 tuns of coal

. Units 1 & 2 1954 Unit 2 656,892 tons of coal

' Units 3 & 4 1970 Unit 3 - 422,770 tons of coal FY1988 Generation:

Unit 4 - 3CA,951 tons of coal Units 1 & 2 none fuel Cost-FY1988:

Units 3 & 4 -8'13 million kwh Unit 1. $28,303.076

' FuelConsumption FY1988:

Unit 2 - $29,463,390 Units 1 & 2 - 1,562 Bill Unit 3. $19,061,731 Units 3 & 4-3f4.144 tons of coal Unit 4 - $16,376,369 FuelCwt FY1988:

Fuelcost per kwh:

Units 1 & 2 - S49,056 Unit 1 - 1.708 cents 4

Units 3 & 4 - $15,402.059 Unit 2 - 1.791 cents

.j fuelcost per kwh:

Unit 3 - 1.870 cents Units 1 & 2-NA Unit 4 1.853 cents Units 3 & 4 1.908 cents Principal features: Wmyah is Santee Cooper's Principal Features: Jeferies Steam Units 1 and 2 are largest generating station. Units were constructed oil-fired turbine generators. Installed when oil was during a half decade of OPEC driven high inflation, the most economic source of fuel, these units are rising construction costs, and fastest growing p riod used basically on a standby basis and for p ak load of demand and energy growth in company's history.

. j generation. Units 3 and 4 were initially oil-fired and later converted to coal to take advantage of the more Myrtle Beach Combustion Turbines economic fuel.

Location: Myrtle lleach, SC Fuel Type: Oil J

Winyah steam Generating Station Generating Capability:

I location: Georgetown, SC Units 1 & 2 20 megawatts Fuel Type: Coal Units 3 & 4 40 megawatts Generating Capability:

Unit 5 -30 megawatts Units 1,2,3, & 4 270 megawatts each Constmetion Cost (excluding interest):

Constmetion Cost (excluding interest):

Units 1 & 2 -$ 2.7 million/ S135 per kw Unit 1 S 62.4 million / S231 per kw Units 3 & 4 -S 3.9 million/ S98 per kw Unit 2-S 73.2 million / $271 per kw Unit 5 S 2.7 million/ $90 per kw Unit 3-S 118.0 million / $437 per kw Began Commercial Operausnt Unit 4 -S 110.3 million / $409 per kw Units 1 & 2-1962 Units 3 & 4 - 1972 Unit 5 1976 4

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Commitments to the Communities We Serve 1

- Phases I and II of a four-phase ;'roject and dikes ar n :ts 56 mile-long naviga-for theinventoiy and mapping of the tion channel were maintained by work distribution system was completed.

forces in General Constmetion who re- -

Design Engineering completed moved floatage and repaired the 12 Communication and SCADA' stmetures, channel markers, and projects, which include the design and buoys. General Constmetion also installation of a weather monitoring

= maintained roads and drainages for i

system to infonn personnel of existing the 52 subdivisions owned by Santee and approaching climatic conditions.

Cooper.

Early awareness could have an effect

.. P'ork continued on a massive on the reliability of our system.

clearing operation below the Santee Flood zone mapping for the Dam to improve inspections and

+

Santee River, extending from lake control drainage. Design work began Marion to the Atlantic Ocean, was on rebuilding a portion of the Santee developed and coordinated with Spillway to ensure its continued high -

Design Engineering.The digitized safety standards.

mapping was loaded onto the compu-The U.S. Army Corps of Engi-terized mapping neers has received $24.3 million to v

['

system. This date in federal funding and began will greatly influ-work to strengthen portions of the ence the devel-West Pinopolis Dam. This work will in-opment of the crease the dam's ability to withstand

~

4 area by showing an e uthr;uake equal to the postulated -

various stages of force of the Great Charleston Earth-flovding in the quake of 1886.

Santee River The Comprehensive Emergency swamp.

Action Plan for Dam Failure is continu-ally reviewed to check Santee m

General Cooper's responsiveness to an emer-

. [-

- $?

Construction gency. A second successful full-scale

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test of the plan was completed in March.

. antee General Constmetion also pro-

< h1 Cooper's 42 5ided clearing, grading, site orepara-

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miles of dams tion, foundation, and carpentry work for system expansion.

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Roland Hypn. fenre Cmcago Ecars ninnng back ar:0 prevntly a R.DonW s

!illflfht56 9($f3!cf fG M00(i$ C0"W iWved itS d SpMRSUW1 FM fCM m0dt'i in thP lu1*

blV NO ' $db3MOCe cibOV [#0g3m suppetM by SinW Cocper g

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I Production (continuestrompage is) power system from the Energy Con-trol Center.

Grainger Station won the Produc-A contract was signed with North tion Operations Goal Program compe-Carolina Eastem Municipal Power tition, winning six of the seven goals.

Agency for capacity and energy sales, The etliciency of Graingerimproved and the first transaction was made on 2.4 percent.

December 11; 1987. A total of 6,681 This year's sales of fly ash, one of megawatthours of the by-products of generation were energy was sold

..... ~.. _..

l.

$43,209.The future marketing of fly during the year with 4 %' ' E H ?

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ash is being expanded by installing ad-a maximum con-i

!'" E ditional equipment and making more tract demand of i

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ash available for sale at the Winyah 23 MW.

g Station. An ongoing experimental System Con-g9g i %n,

1, project, using fly ash for highway road trol purchased beds,is being conducted with Hony 142,027 megawatt-County.

hours of power s

All generating stations, except from the intercon-s V.C. Summer, nad annual planned nected utilitiesin maintenance outages, with Jefferies FY 88 to displace h

Station requiring the most major work.

higher cost genera-4 Jefferies was totally repainted. A pre-

- tion for a savings of 3

cipitator for Unit 4 was completely re-

$375,000. Also, i

built and the coal silos were lined.

371,033 megawatt-Steam generator superheater tubes at hours of energy Unit 2 were replaced.

were soki to the interconnected PowerSupply utilities for a total of $10,140,000, mama,er m * "" Sd"* C " "

l"h W

ard PM, Wx

1 ower Supply developed a um.t Design Engineering Og501 commitment and interchange evalu-y,4#

ation program which is used daily to g

cm 'e determine the best combination of p esign work progressed on a

,C$l71 generating units on-line and power system-wide 230 kV transmission line

"[; ' *%

interchange transactions with other overlay to survot the existing 69 and b,

o utilities.

115 kV transmission system.

I ' ' 3?l7 A <'"

Santee Cooper's Supervismy Design of a new 115 kV system Control and Data Acquisition will increase reliability and improve (SCADA) system was expanded with capacity by upgrading the existing 46 remote temiinal units added in five kV system in the Aiken area.

major substations during the year.

Additionally, design was com-These installations significantly pleted on four major transmission line increased the capability to directly projects and seven major substation monitor and control Santee Cooper's projtets involving 20 substations.

1 Commitments to the People ofSoh.'I Camlina t

Transmission Operations and a cooperative erosion control policy was begun during the year.

More than 12 billion kilowatt-Santee Cooper worked with landown-ers and transmission engineers to hours of electricity were delivered to prevent erosion problems rather than aW E M womm imugh -

try ng to correct a sittiation after

. ueo s;ucommanen

$$U b 'itee Cooper's transmission system.

erosion was in progress. This program em e,ue

,Du.s consists of 3,412 miles of hne and has improved landowner relations for gggy 58 substations and switching stations all maintenance operations, macace with voltages ranging from 34,000 to C2L 230,000 volts.

ProjectManagement I

wwc3mca Power was supplied to 85,393 l

W aN Jxk HuRMoe.

tum cmax mm retail customers, two municipalities, g

EjiCL three military installations, 26 large a roject engineering, budget j

sw w industrial customers, and 300,000 control, constmetion management,'

i customers served by 15 of the state's 20 and material coordination were pro-electric coopemtives through 224 vided for current substation and delivery points.

transmission line projects.

Over 1,200 miles of transmission Transmission line routing and

'line rights-of-way were maintained, substation site selection were com-pleted for the Pawleys Island and Red Bluff projects, which will upgrade the i

I existing 115 kV service to this rapidly growmg area.

l Peak Demand (MW)

. Also, substation site l

calendar rear selection and transmission line o

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routing were completed for the i

1M% - 2.160. j. c R[ ?$k/ l 1 sel '] } f )] E)

Charleston Naval Shipyard.

a gg?

2,123--l

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Two Aiken area projects, L

g route selection for the 25-mile i

1906.A133 f p g l,

..l,4{.

l l::l Aiken-Batesburg 230 kV trans-

'19855 2 A0$ f l 9..l g. k lC 'l j.. }- l; mission line and the conversion 1984: jt,828 ~ } g.5 } i - l ? [' 1 j.

Qf"..j of the Northem 46 kVloop to 115 kV, were completed to improve service to area indus-Capacity (MW) tries and Aiken Electric Coop-catenaar year crative.

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. - } $'!M m MMimie

- 1985r 2,864 l

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}..$1M proved with the addition of a 1984 2,sti.-l

h,

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j. !*. 7 J

. [$)[$$;Q new interconnection with the Southem Company at the

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f CommitnYentsto the Pgopleof

'SouthCarolina Santer Cooperis l-committed to operatingas

.an energyand economic.

resowte beneptligallthe peopleofSouth Camlina.

We tvill work closely with state, county, andlocal 4

entities to impmve the

- qualityofhfe thmughout

- South Camlina. \\Ve will

.use'ourhuman and materialresources to shpportprogtums, act'ivi *~ ',

ties, and nnedsirra uny which contributes to the bestinterests ofthepeople ofthisstate.

i I

l

24 Commitments to the People ofSuuth Cmolina l

Cooper indus-Capital investment is estimated near trial customers,

$30 million, with full production sched-will provide op-uled to begin by first quarter,1989.

portunities for Because of thejoint development Santee Cooper efforts by Santee Cooper and Hony to share long-County, Site Selection Handbook chose smann range planning the Atlantic Center for Business and infonnation to Industry as one of the top ten eco-assist mem-nomic development projects in 1987.

bers with their Earlier this yearin an effort to j.. y m_.

future plans.

strengthen reemitment ofindustrial Also, work clients, Santee Cooper and Central 5

f

" ')[

f continued on Electric Power Cooperative, Inc.

the 272-acre merged their economic development

'g; ' %

Atlantic Center programs, fonning the Palmetto

@f for Business Electric Development Corporation.

and Industry, a This partnership will work with the "N(N joint economic South Carolina Development Board to development bring new industries to the state.

• ws */me =

effort by Santee Cooper and Hony Headquarters will be in the AT&T County.'lhe first tenant of the mixed.

Capital Center in Columbia, S.C. in Zgl{gg use, full-seivice park was Allied Signal, offices adjacent to the State Develop-an international advanced technology ment Board.

mmune -

mse,wa m m w s company that purchased two buildings nec,aw se

$,QZlL and 40 acres ofland. Allied Signal Flood Control nmenw mn-will employ some 125 workers at the Z$l77" amorphous metal casting facility.

' s part ofits flood control program, Santee Cooper conducts spilling operations when necessary to maintain proper elevations of the Santee Cooper lakes and to reduce

~

5 flooding of the lower Santee River.

Spilling was not required during the past year due to severe drought

- ~.

conditions, adequate capacity for lake

.V G

storage, and eflicient operation of the o

Jefferies and St. Stephen hydro units.

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. McIntosh 230 kV station. Santee utilitiesin the Cooper maintains other interconnect-state.

. _1 tions with the Southem Company and infonnation the Southeaster Power Administra-was also pro-j ',

~

tion at the R.B. Russell Dam; with duced in the fann South Carolina Electric & Gas at oflegislative brief-Bushy Park, North Charleston, St.

ings, position t

George, Mateeba, Columbia, and the papers, slide pre-V.C. Summer Nuclear Station: with sentations, and O.

Southeaster Power Administration, two major publica-r Duke Power Company, and the tions. Pushing

-Q g Southem Company at Clarks Hill; and Back the Darkness.

a

- M with Carolina Power & Light at Dar-is a booklet that lington, Hemingway, Kingstree, chronicles Santee Lugoff, and Darlington County Plant.

Cooper's achievement in bringing Toww se cwnterew w w m n e un n m electn.e power and economic develop-a m e e an m e n w ment t South C colina. Public Foreer wn,ngamewwcnewe Corporate Communications w uu,_,_ us,

Oicned by the People ofSouth Carolina

^^*""u?m n"m*w mo u a m uu; m w

&E is a brochure which explains the

= wm to o nwyse cma n mmoen wue a ublic Power Owned by the company's role as a state-owned mue e,%oon nmc People of South Carolina," Santee power resource.

- Cooper's new corporate identity line, Santee Cooper's annual report anna em mea,

was introduced to communicate the eamed a silver award m, annual compe-us: u se utility's relationship with citizens of titions sponsored by the Advertising Q"ggy.ji the state.

Federation of Charleston, and, for the ew* -

Telling the story of Santee fifth time in ten years, the report l$6n %

Cooper's history, service to its custom-placed first in American Public Power ers, and value to the people of South Association com-

,s.,ge.,-7 : n Carolina was the primary commitment petition.

[y

$$QM.Q 1987.

Marketing A'

' # [%. N($O Mk M

. U$$

for Corporate Communications in L

A( (I f b % h fl Primary emphasis on telling the Santee Cooper story included partici-

~

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' s a result -

pation with a number of electric cooperatives and municipal customers of the redirection

[

gf in National Public Power Week.

of Santee Cooper's -

Proclamations recognizing public economic develop-4 s

. }gpp f

power as an important national and ment campaign in local resource were signed by the FY 88, the Indus-govemor and several mayors in the trial Customer As-g...

7 ;7 sociatmn was es-gg -

Santee Cooper service area. Corporate Communications published A Salute to tablished. This as-W t

M[M{.;...

'l Public Poteerin South Carolina, a sociation, consist-

}.

special tabloid newspaper section ing of the 25

. &y z e

/

featuring the role of publicly-owned existing Santee 7

Commitments to the Environment 26 i

EnvironmentalResources Water QualityManagement antee Cooper received he 50 water quality monitoring

+ wsanmecocteraesarerad

$413,221in federaland state funds as ore of Soum Camima s top stations located throughout the remmnairesoures and one or from the South Caroh.na Aquatic Plant reservoir system were sampled regu-Eof $n"eAN' sui lEa%"" '

Management Council for noxious

. larly for physical, chemical, and memon mnmaces aquatic vegetation management in biological conditions, with 21,108

' %%M$U$7 1;tkes Marion and Moultrie during the laboratory analyses conducted during Na'nNs%Eoggg'

• year. The Council also approved a plan the year.

comersea naemed to stock sterile White Amur fish in Water Quality Management's "l$7E2,5Ne$ area Lake Marion for aquatic weed control.

involvement in special studies during Ef$NoINon This three-year project, to begin in the year included bacterial contamina-spring 1989, will cost approximately tion investigations of surface and

$1.81 million.

ground water at the Lions Beach /

Atkins Landing area of I;tke Moultrie.

%%%%$7" MosquitoAbatement Ajoint study was also initiated cceennrougnouns weaun Bvd member Joe Young fe't) with the U.S. Geological Survey to anaan enve ne sen ca#a WaW Assocaun, antee Cooper,s Mosqu.t evaluate the potentialimpact of the i

L2No"a$ec[g;f Abatement unit conducted control op-GSX Hazardous Material Disposal d

a aggewaan erations on all project properties in th Facility near Pinewood on the water gagng five-county area surrounding the lake quality of 1;tke Marion.

Aquatic plant control was con-i 79 pry 15C ym y

system. More hhD%w h..h

[ acres we,re aquatic vegetation. Herbicides ducted on 235.6 acres of noxious

)

than 148 000 wy

. j[ treated by air e

f approved by the Environmental Pro-Q j

tection Agency were applied by heli-y and ground w

c copter, airboat, and tmck-mount spray

[ equitmnt.

units. Eighty-five percent of the pro-

^

. [

o p

,ren msect gram cost was funded by the South I

h genera and 50 k

p spem q of Council and the U.S. Anny Corps of Carolina Aquatic Plant Management y

p mosamtoes Engineers.

E appeararound the lake area.

More than Aquaculture

(

P, i: 11,000 entomo-g

}

logical inspec-Qantee Cooper's Aquaculture b tions and sur-Center near Georgetown assisted the s

" ~ " ~

~~

i veys were con-University of South Carolina Peace L~

ducted to mea-Corps Training Program by providing sure the density of adult and larvae

" hands-on" experience in fish harvest-mosquitoes, establish threshoki ing, handling, spawning, and rearing.

annoyance standards, and determine Over one-half million Tilapia fish control operations.

were cultured at the hatchery site,

l

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/'

d Commitmentsto I

- 'ourEnvironment 4

4@p i

SanteO'ooper is n<nnmitted to pmtert our encimnment as

,one ofour most vital resonrers.1his includes theair, water, andlands,

where we operate, l%>

will work to improtre e

its quality arid promote its protection in allphases ofour operations.

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Commitments to the Envimnment.

28 no cost for use as part of the State's quality of Santee (

..er's service and Wildlife Game Management Area perfonnance. Fifty-three projects were.

Program, completed and approved this year, More than 110,000 genetically producing recorded net annual savings improved pine seedlings were planted of more than $36,500. A few examples on 156 acres of Stmtee Cooperlands as are indicative of the PEP pr' gram's part of the reforestation program.-

spirit of enthusiasm and commitment.

Approximately 6,823 acres of wood-for making improvements within -

lands were control-bumed to reduce Santee Cooper:

wikifire hazards, improve vesthetics The Results unit atJefferies and wildlife habitat, and control Station identified areas of duplication undesirable species. Approximately and functions which are no longer 150 miles of f!rebreaks were con-needed or coukt be reduced in fre-stmeted or maintained around young quency. BeneSts included saving ap-pine tree plantations to protect them pmximately 580 annual man-hours or from wildfires.

$9.400 per year.

Annual revenues from the sale of He Cross E&l Maintenance unit forest products and agricultural leases reviewed the process of removing, in-totaled approximately $180,000.

specting, and repairing 480-volt circuit breakers. Using a hydraulic hand ProgramforEmployee tmek and other " handling" equipment

. Participation reduced this from a four-man job to a two-man job with savings of $3,900 Forty six Program for Employee per year, A PEP team from the Hony-Participation (PEP) teams, involving Georgetown Division Delinquent 315 employees, developed recommen-Accounts unit made improvements to dations for changes to improve the the intemal method of handling retumed checks due to insufficient anone ine,m funds. Savings are estimated to be ms,n uno,uwa around $4,800 in the first year.

to w remom by asen.mm m sun cm.2 we The Accounts Payable PEP team gjg4 4

proposed microfilming records to e n nxa.a e

.E improve that department's filing

$N$$$7 h,]

system. This will net an annual savings

~ ~ ~

amu ch"*"

41 of $3,900.

LYMy v

k@ke5dgj In FY 88, the number of PEP wr 9

v teams increased 64 percent, and the E'

(

number of participating employees increased 43 percent. Also, projects s;

completed increased 382 percent.

1

27

mainly to stock the Winyah Station parking areas leased to the South cooling reservoir for weed control Carolina Wildlife and Marine Re-maintemmce. Surplus fish were soki to sources Department.

f other utilities and the public.

Constmetion of docks, board-Approximately 200,000 mosquito walks, observation stations, and fish, Gambusia afinis, were supplied to walking trails neared completion on the Mosquito Abatement unit for the Old Santee Canal State Park, a mosquito larvae control, joint project with Genetic research was conducted '

the South Caro-y to produce sterile White Amur for lina Department of biological aquatic vegetation Parks, Recreation management,

& Tourism. Open-gj.

ing of the 220-acre historic and envi-i Horticulture ronmentalpark near Santee S.

4 Production and income from Cooper's main l

horticulture operations nearly doubled office complexin

' the previous year's totals, with reve-Moncks Corneris L

nues increasing from $53,464 to -

expected during 3

$103,029.The demand for green-early spring 1989.

house-grown tomatoes exceeded pro-The site includes duction. Installation of a drainage the Stony l2nding e

system under the beds improved plar,tation house production. A total of 210,000 pounds which will be of tomatoes were produced during restored and the i

f theyear.

lower portion of the Santee Canal, America's first navi-neenve m.

e PropertyManagement gational canal connecting two rivers. A

g"$ L large interpretive b tilding is in the ceneawas%n assaa The Property Management unit by fdknv technoan Robst pl nn.ing nd design stage.,fhe es nw ma,nenme pr p sed Berkeley County Museum 3" g g e* g administered leases for approximately y

will also be located within the park.

mnewcawsun 4,300 parcels ofland as recreat.ional usmmesens comcwe Almost 32 acres ofland on 12ke an cmsg cm.2 lots in Santee Cooper subdivisions, Marion were leased, at no cost, to marginal lots adjacent to privately-Orangeburg County for the develop-owned subdivisions, commercial lots, ment of a recreat,onal park, which will i

gratis leases to pubh.c and quasi-pubh.c melude boat land.ing facilit.ies, nature agencies, and van.ous nuscellaneous tr ils, and p.icmc and playground areas leases for public recreational facilities.

f r us by the general pubhc.

Revenues collected from these leases Alm st 18,@ ams oMme totaled $655,684 during the year.

wildlife and waterfowl habitat were Property Management personnel leased to the South Carolina Wildlife provided maintenance and reppu to and Marine Resources Department at 17 public boat launching ramps. 3

l Commitments to Employees 0

Employee Relations Santee Cooper hired 97 new employees in FY 88, bringing the total Close contact with state college, number of regular employees to 1,608.

One hundred seventy-eight employees technical school, and high school were promoted to positions of greater placement counselors ensured that the responsibility, and 57 productivity or needs of the students and Santee safety suggestions were submitted

. ca$nmows musce Cooper were met.The utility spon-through the company's Suggestion gj((lgy sored several cooperative education Program.

cme emscyeet ano nas students and participated m vanous

[l Z % C O job fairs and minority reemiting l

OecupallonalHealth ornnemo craciructo' progrants.

Nancy Bra &j observes as PM Pianton and Beth oimr h,mployee activit,es dun.ng the i

p pa@ce the procedure yearincluded the annual company Comprehensive occupational '

picnic, attended health / industrial hygiene prognuns by over 1,800 were expanded during the year.These employees, retir-programs include health assessments

~

ces, and their and preventative care counseling to all-families; golf, employees. First aid and CPR classes basketball, and were taught to 1,354 employees, and softball tourna-these techniques have been used by ments; and personnel to save livs.

aerobics and The new Hazard Communication MA weight watching Program was developed and imple-N('[ g classes.

mented as a major responsibility of j

l'wo new this unit. This mandated program

~ - -

cottages for em-involves identification and labeling of gm ployee use were potentially hazardous chemicals and constructed at materials, and the training of Somerset Point, personnel.

j the company's Other training included hearing 4

~'

recreation area conservation, prevention of back on I2ke Moul-injuries, respiratory protection, and trie. A new em-smoking cessation classes. Achieve-playee recrea-ments during the year also included tion building was reemployment screenings, workplace constmeted at monitoring for possible contaminants, same c=emovem the Winyah Generating Station.

and blood drives.

@$%C1 All exempt positions were re-An Occupational llealth nurse Os7CCs evaluated to more accurately reflect assigned to the Hony-Georgetown

$$7 Mg cunut job responsibilities. A pre-Division provided improved occupa-retirement bnefing program, covering tional health support to that area.

a multitude of personal and economic issues for retirees, was conducted for 50 employees and their spouses.

l

1.

. 29 Commitments.toEmployees-h Santee Capery committedto.

maAstaininga highlyskilled, uielli.

tmined, and dedicated twthforce.

~

Wewillpmvideasak, thfilquipped~

g, avrkingenvimnment,empetitive compensation,andleadenhip)fn:

3 employeestoteorktotheirfull.

l a

5 potential. We tsillopemteinfullspirit.

. andcompliance'mWthetorpomte'

EqualOpportunityaidMinotatisse. :

Actionpragmms., ~ '

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Commitments toEmployees 32 from peak to olFpeak hours.Ris load Cooper's Energy Management and shift lowers the energy cost to all Rates units. This new standard will customers by maximizing the eflicient benefit all South Carolinians and lower use of facilities installed to meet energy costs throughout the state.

customer electrical power MartagemeritIrifor,riatiort

' ' requirements.

Systems Tlus and other demand-side J management new high perfonnance main-4 N

1L programs will frame computer system was installed

.?

extend the time to meet increasing corporate de-T before con.

mands.To improve tape handling and Nv.,

stmetion of the storage media, a new technology of si next generating tape cartridges was added, along with unit will be additional disk storage to increase needed.

data space.

.. 11 Atele.

Systems and Programming phone survey of developed computerized support for mncy c cm N*

commercial customers was conducted Santee Cooper's automotive system,

$Z3MU" with the assistance of the University of including preventative maintenance,

$$$Ufmno South Carolina to obtain appliance repair order entiy, and monthly e.ammw saturation data and to detennine

. progress reporting functions. Also future electric energy needs, completed were a number of micro-Solid-state metering was installed computer-based applications and a for large industrial and municipal cus-service work order system to track tomers, pennitting remote reading. In retail customer service requests.

approximately one year, Santee Improvements to other applica-

)

Cooper will begin installing solid-state tion systems such as purchasing, metering for all members of Central payroll, and materials control were Electric Power Cooperative, Inc. This also made. Stili under development are new technology will provide real time a number of software projects support-infonnation regarding customers' ing additional materials control, a fuels electricity usage, and it will ensure management system, and a budget timely delivery of electric bills.

infonnation system.

Santee Cooper was recognized as Technical Support upgraded the a leader in the utility industry in the mainframe system which delivers state and is frequently called upon to computer and tenninal-user capability present its demand-side management and the office automatien functions.

program to utilities across the country.

The installation of 150 new tenninals Govemor Campbell issued a and 70 personal computers provided proclamation establishing an efficiency access to stored infonnation for more standard regarding mobile homes for than 600 employees who use the j

the state.This was the result of stan.

computer system.

l l

dards developed jointly by Santee 1

\\

s 31 Training undDevelopment percent and total accidents b 8 Y

percent.This safety record eamed A linemantraininginstmetor Santee Cooper second place recogni-tion from the k 2rican Public Power 1

was assigned to the Hony-Georgetown Association loe National Safety Coun-Division to conduct programs for cilissued 22 organizational unit Transmission and Distribution. New awards, while the South Carolina techniques were used to train Trans-Occupational mission and Distribution personnel Safety Council I

using a live line sdely training simula-issued 21 organ-tor which improved work site safety. A izational unit new pole top and bucket tmek rescue awards.

training program for alllinemen was Grainger developed.

Generating

• ,-AMP Employees attended 755 training Station, Darling-programs in various subject areas for ton Area, and professional, technical, and skills Conway Area development.

Transmission Emphasis was placed on Hazard units were pre-

~

Communication training for employee sented Awards awareness of various types of chemi-of Merit for no cals in the work place.

recordable

-- ----i A computer laboratory / classroom injuries. Presi-was designed for advanced and basic dent's Awards were presented to 91 mmm em$

computer instmet. ion by a full-t.ime units for no disabling injuries while mwrwcws newe e computer training instmetor-operating under hazardous conditions.

gjgg; The refresher firefighting course Safe service awards were presented to

• A w "a*

was updated and conducted for all Pro-264 employees; safe driver awards homm

+ amm 3 mms duction Department personnel at the were given to 138 employees; and six generating stations.

employees were cited for avoiding Simulator training was provided injury by wearing protective devices or for generating station unit and auxil-equipment. New safety programs laty operators to increase job profi-include Employee Safety Incentives ciency and to improve heat rates.

and a Safety Shoe Program.

Courses leading to two-and four-Workers' Compensation claims year college degrees and graduate paid were reduced by 54 percent.

degrees were completed by 200 employees through the tuition aid Corporate Forecasting, Rates,

" ~ " ' " " '

and Statistics Safety g

M new time-of-use commercial Santee Cooper's 1987 safety rate stmeture began March 1,1988.

record was the best since 1981. Inst This rate will reduce a customer's time injuries were reduced by 36 electric billif the customer shifts load j

f i

)

Schedtde ofBonds Outstanding As of June 30,1988 un 71wusands)

Maturity 1950 1967 1973 1973 1974 1977 1977 Date issue issue Refundingissue issue issue Refundin01ssue issue July 1 int. Rate Amt.

Int. Rate Amt.

Int. Rate Amt.

Int. Rate Amt.

Int. Rate Amt.

Int. Rate Amt.

Int. Rate Amt. -

1988 2.70 310 4.10 715*

5.00 1,010 5.20 1,250 6.00 1,325 5.00 3,280 4.60 515 1989 2.70 480 4.10 575*

5.00 1,060 5%

1.315 6,10 1,405 5.10 3,450 4.70 540 1990 2.70 1,900 4.10 420*

SW 1,380 6.20 1,505 5.20 3,620 4.80 570 1991 2.70 1,950 4.10 440' 5.30 1,455 6%

1,590 5.30 3,830 4.90 590 1992 2.70 2,005 4.10 455*

5.40 1,530 6.30 1,695 5.40 4,035 5.00 625 1993 2.70 2,060 4.10 480*

5.40 1,615 6.30 1,795 5W 4,260 5.10 660 1994 4.10 2,605*

SW 1,700*

6.40 1,910 5.60 4,480 5.20 720 1995 4.10 2,720*

SYa 1,795*

6.40 2,035 5.65 4,710 5.30 785 1996 4.10 2,&l5' Sh 1,900*

6.40 2,155 5.70 4,995 5.40 830 1997 4.10 2,975*

5%

2,010' 6W 2,295 5.70 5,265 5.45 890 1998 4.10 3.105*

Sh 2,125' 6W 2,435 5%

5,590*

SW 935 1999 4.10 3,245' SW 2,245*

6W 2,590 5%

5.915*

SW 1,005 2000 4.10 3,395*

SW 2.375*

6W 2.750*

5%

6,275*

5.55 1,065 2001 4.10 3,585*

SY4 2,510*

6%

2,920' 5%

6,665*

5.60 1,130 2002 4.10 3,705*

5%

2,655*

6%

3,110' 5%

7,050' 5.60 1,220 2003 4,10 3.870*

Sh 2.810' 6%

3,295*

6.00 7,490*

5%

1,295*

2001 4.10 4,045*

SW 2.970*

6W 3,505*

6.00 7,950*

SY4 1,380*

2005 4.10 4,230*

SW 3,140*

6W 3,730*

6.00 8,450*

5%

1,460*

2006 4.10 4,420' 5%

3,325' 6%

3,950*

6.00 8,970*

SW 1,570*

2007 SW 3,515*

6%

4,205*

6.00 9,400*

5%

1,795*

2008 SW 3,715' 6%

4,470*

6.00 9,950*

SW 1,915*

2009 SW 3,930*

6%

4,745' 6.00 10,565*

SW 2,080*

2010 SW 4,155' 6W 5,415' 6.00 11,210*

5%

2,225*

2011 5% 11,520' 6%

5,350*

6.00 4,930*

5%

2,180*

2012 5%

12,180*

6W 5,695*

6.00 5,315*

SW 2,300*

2013 5%

12,880*

6W 6,485*

6.00 5,625*

SW 2,500*

2014 6% 20,045' 6.00 6,010' 5%

2,680*

2015 6.00 9,515*

SW 21,065*

6.00 11,285*

5% 21.235*

2016 2017 SW 34,580*

2018 2019 2020 2021 2022 Total Outstanding 8,705 47,790 2,070 92,000 101,595 190,135 112,330 Bonds Redeemed to 6-30-88 6,595 3,810 9,980 8,000 7,405 25.015 2,670 Bonds Refunded to 6-30-88 0

0 0

0 0

0 0

Origmallssue 15,300 51,600 12.050 100,000 109.000 215,150 115,000

• TetTn Bonds See Schedule of Refunded Bonds.

g Commitments to Ourhwestors 34 1

Accountingand Finance "d "*P1 yees, nd members of the

[

20 electn.c cooperatives of South Caro-In Febmary, the board of direc-lina.The bonds will have a "put" feature which will enable bondholders tors approved the development of a to sell their mini-bonds back to Santee

.- An enuW medgid Saree cuer s o min'-bcod is new mini-bond program to offer invest-Cooper for a 3 percent administrative d's0LTpd by i Gr#am tends, ue present ment opportunities for a greater num-fee upon 30 days written notice.

$$rfj$[7f'""

ber of people in South Carolina.The Interest on the mini-bonds will be paid reaoni nem mini-bonds will be issued in $500 de-semi-annually. The first issue of mini-Coop.tattes of South Carchna ineiareempt m,n, tend nominations with a $5,000 maximum bondsis scheduled to be sold ES$e$$$tes purchase by any one individual.The September 23,1988, and will mature a ssco mements to scuta bonds are available exclusively to state July 1,2003.

Carchna resents and

, n.

t ustomers o! Santee Cooper residents, Santee Cooper customers and the +ctoc coopermes RateComparison FY88 laDKH11 Residential (Annwe Cost) o ao do ao ao 100 tao M h ' L l~$31.M l ' $ ) M W M M f M N f d lM, f,{ ;[gg,g l2... l, $$$$%p@$@j iemaceva 1skal. tcesMiutMM M1

", l $ lj f f.[ ' - l$MQDN;i.(yfjj g gges jrlggy.l

[,

(.,gj:y,@pQQ!Q

$ 1.. -

l s s.h );.. :l ' t [. e)$$!hMMT gar I.em.ti. l

.nlejuguta lg L. :;J..{gg,g{

,j... l,,j.,. jgggggg%

%: 8 [.. -l 3gts l. I ( L f. 'EE..j,

l.. $ $ $,$

anseeleal % W I % eggs Lk Y9% N'[d$1$+1f N N.M [d b [h/N.l..!' M Rates (centsnavm Compared with utilities based on the National Average a

4 s

e 7

p f ? h t a, w w m ic..

i'

i..

ntoggg f!gjpapqM.E tC cl wILM M wt? I M wWGINEWER HOE IMM#gggf:.gg M q 77py lnele p e e h z A

h National Average O se#teeceaner i

PNn u

i

~

s

" 'j."

..),

i 4

(

-t s

o -.

h, 1._

'j.

[

yy, 7

i i

i Li

?4

h I r

r

[t

"-.g

.. E

$i *

.i.

c1978'

'19794 19004 _

1981A.

'.1981C '

' 1982A A L10028

--1982 ilesse -

,. Issue....

Int.Rols Amt.

hit. Role : Amt.1 int. Rate '. Amt.

Int. Role ; Amt.

l Int. Role Amt. '

' lat. Asle. Amt.

Issue

. ~ issue

.. Issue -

Issue -.

Issue.

Refundmgissue s

l; - lat. Asia - Amt.

. Int. Role Amt. '

l

+

[l (4.ED ! 1,125 5.60' 1,105 ;

9.00-950. : 8.00

. 760 L 11.00 :865 -

10W' ~ 1,595 310 %. ;740 2 7%v 470 7

p 5 C3 1,200 5.70 1 1,150:

1 9.10: 1,035,

- 8.15 '

,845.

11W 1 '965 711.00 l1,735 '

10W' 835'

' TVE 505 f

5.05 ' 1,155 4

5%

1,195 9.20 1,130 /

' 8.30 -

NO.

11W 1,070.

11 %

1,905.:

10V41 940 i 8.00 l MS:

y.5.15 - ~ 1,220~

5.85 1,240 ' : 9W L i 1,235 r

8.45.1,050

- 11% 1,185 11 % - 2,105 -

11.00 -1,060 :

8.20 -

585'

' 5.10 -

1,285 :

5.90

~1,300.-

9.30 f 1,350 ~

8.60 1,165 -

11 %.:1,195. ; 8.40 1 635:

w 5.20 D 1,355 '

5.95 1 1,360 i

-9.40:. 1,475- '. 8%

1,295.

8.60 -.690~

5 W -1,4401

'6.00 ' 1,425 9.45 1 1,615 -

-8.90 : 1,435

. 8%'

~. 750 =

L 5.30. ; 1,515, 6.05 1,490 '- ;9%

1,765 '

9.00 1,600 -

9Vs '

815*-

5.35. 1,585 ;

' 6.10 1,565 '

9.80 ' 1,930*

. 9.15 - '1,775 9% '

890*

5.40 S 1,670l

.6.20 1,645 i 9.80 - 2,120t 9.30.1,970 9%

i975*

5.40 1 1,760 :

'6.30 ;1,725

' 9.80 L 2,330*

9 %. 2,190*

9Ya

1,070*

5.70""1,850*'

' 6.35. 1,815 '

9.80 l 2,560* -

9%

2,430*

9%i-1,165*.

- 5.70 1,940*-

16.40 1,915.

. 9.80 L 2,810' 9%

2,700*.

9Vs 1,275*.

E 5.70, ' 2,045*/-

6.45 ' 2,025 ~.-

L 9.80.. 3,085*,

9%. 2,995* '

9%

1,395*-

' 5.70 : 2,145' ' - 6W =. 2,135

9.80_: 3,385*.

9%

,8,000*

9Vs,

1,525* -

'5.70 2,260* - l6W

. 2,260,

L 5.70 ' 2,380*

- 6%

?.390*

' 5.70 1 2,500*2 6% ; 2.Mo*

5.70 : 2,630*

16:V4 ' ' 2,695*

5.70 - 7,385*1

-; 6%.. 2,865*

5.70 z 7,M5*

6 % 7,010* -

3 5% '

8,330* '. - 6% - ~ 3,160*

- 5% ' ' 8,845*

6%'

3,335'

- 5% : 9,390*

6%. 3,525'

5%. 9,980*

6%

z3,720*

' 5%. - 10,590* -

6%

3,925* -

5% ~ 11,250* -

6%-

4,140*-

5 % o 11,950' 6% 14,370* -

- 5% > 12,555* -

6 % - 4,610'

5 % 13.190*

6%.- 4,870*

57/s i. R600*

67/s.. 5,135*

6 % ' 25,550

1 194,970 105,190 28,775 31,150 4,085 7,340 4,770 13.290 5,030

. 4,810 3,500 1,850 1,495 2,840 1,220 435 v

0 42,725 42,000 144,420 1M,820 159,010 280,275

.200,000' 110,000 75,000 75,000 150,000 165,000 165,000 294.000 m__.__

_____.___]

33 g.

r p

. a ~

f..

p-

\\

c'

< f

+.

f:L fE Y^,_

.sy y 3

g W

L. f. E

)-

9..

n

.S

$@m.N k.

f-m a

-f' l.f...%_ v. e.

1 s Commitmentsto a.

ourInvestors -

f.A?

Siinter Gwperis l ^, ~ _~ l committed to be a

9...

8_

pnanciallystrong utilitf y,

-+py.

system, using the most W; t.,, -.,. '

'gll; twth long-tenn andskytt,

e

's..

pnedent altentatimkr

_ [,

.;f..[..;'

. p.

n.,

ennpnancing. We will cinninually etuluate l

..4.-

,4

- ::..5.'?.

pnancialaltentatives to

. '^ ~

x l_ j' ;:.;;;, [ *.

attract funds at the most

~.>

. _., My s

' adtentageous mies, 4

...,} ;, [f f._

i :'_ ', ( Q %;.

while pmt?iding pn>-

'.~! l < #

y; -

- ~

tertion against unsw-

?., :

2

. l_^

sonable business risks.

',: e.;: y ),' ' *., l ' -

5.3.f:. y 1. : ;g. '

,< ' %__~.% g" n mn.;.

.$4&..

^ _'

a._

z.,.y. g l -.,

.. c

.. _ ^

.'=,:.-.

.\\&k

^g. _

. n,:

2.-

'.h C.. -..

_ p,?e. -:.o'_'.

(: { f L '.

_, ~

f

_. Y..

.E. ;{. ' ' ',

lr }.f-; I. i '-

hh] h

4 fs j:

(!f i

3

.l

'37

.J Q2 i

h'>

.j l.

b' 1900A48 1900C40

.1987A -

hesi hisi 1906 -~.

-1906 -

1906A.

nelunengissue nelunangissue '

' Refundingissue.

Principal Accruing

DeM ~

' nelunAnglesse Issue

. fielunding issue

int nais Ant :

lat. nete Amt

. Int nais. Ant int. nsis Amt.

. Int nais. Amt int.nsis - Ant Oishnities

. Interest service.

[ ? 6%

460' 6 % 13,500

,6%

335-

' 4W

. 760 f 3.90 785 31,855 136,024 =

167,879 I y 7.00 l490 7,10 13,500 6%

360 5.00 795 4.30 805 33,045 133,931 166,979 166,041-

! 7%.

525 '

7.40 13,500 '

.1,00.

380 SW 830 4.60

.850

' 34,360 -

131,681

~166,944 I

7,70' 13,500 7%

410 6 % - 1,890~

5.40 875 4.80

.880-37,655 ;

129,289 -

(7}/s '. E35 '

f 7% L 605;

- 8.00 - 13,500 7W 440 7,00. 5,665 5.60 - 925 5.00 930-

'39,310 126,593 165,933

+

0,00 650

' 8.20 13,500

'TW 470 7,15 7,380

' 5.80 - 975 5.90 975

'40,995.

123,868 161,863

- G.20 c 705'

' 8,40 13,500 8.00 510 7.30 7,890

~ 6.00 1,030 5.90 -1,025 42,740 121.025 163,765 l-0,40 ' E765 8.70 13,500

.8.20 2,425 7,40. 6,580

'6.20 -1.095.

5.90' 1,080

'44,675 117,0 162,667'

- 8.60 -

825

' 8.40 2,030 7%

7,615 6.40 1,160 5.90 -- 1,140 ~

33.270

- 114,704 147,974

-f 3.80 = - DO :

8.60.- 2,390 -

7,60 ' 7,995 -

6.60 1,235 6.00 1,205' 35,M0 _

112,439 147,979 :

l 9.00. 1,060 8.70 L 4,980 7,70 ' 5,925 6,70 ' 1,320 6.10 1,280 37,030, 109,983 147,813

- 9.05 : 1,160 8%

5.405 '

7.80 6,365 6.80 : 1,400 6%

1,350 40,510 107,298 147,798

'. 9,10 1,150

- 7.80. 13,200 6.90 1,505 6.40 1,435 43,700

' 104,393

' 148.183 :

9.00 11,020'

. 7.90 835 -

7,00 1,605.

.6W 2,875 44,65')

101,283 145,933 '

9.00 ' = 6,090*

7.90 900 7,05 1,715

-6W 4,280

- 47,915 98,012 145,927 9.00 15,390*

8.00 4,695 7.10 3,510 6.60 4,575 51,450 -

94,481 145,931 8.03 5,070 7.10 4,920

.6% '20,390 55,000 90.827' 145,827 JW

,5,000*

8.00 5,475 7,10 5,265 6 % 16,795 '

58,585 874691

.145,8M 8.00 5,910 7"

5,625 6%. 2,350 41,445 -

' 83,344

' 124,789 u.

6,000

- 6%

2,525 44,080 P0,709 124,789 8.10. 6,390 8.10. 6,905 7.00 6,415' 6%

2,715*

46,970 77.821 124,791 8.00 7,465*

7.00 6,850' 6%

2,925' 50,050 :

74.752 124,802 8.00 8,060*

7,00 7,310' 6%

3,140* -

53,325 71,471 124,796 8.00 10,480*

7.00 6,025*

6%

3 380*

E 830 67,970 M 800 8.00 11,315' 7.00 6,430*

6%

3.625*

60,560 -

61,236 124,796 B.00 12.230*

7,30 6,870*

6.90 -'3,880*

64,545 60,253 124,798 '

9.20 6,745' 8.00 ' 2,095*

7,30 7,915' 6.90 4,150*

68,993 55,988 120,974 9.20 7,700*

8.00 2,260*

7.30 8.145' 6.90 4,465*

69,470 51,521 120,991-8.00 2,445' 7.30 20,430*

6.90 4,785*.

77,345 46,944 124 289 8.00 2,625*

7.30 21,875*

6.90 5,160*

82,500

-41,974 124,274 i

8.00 2,850*

7.30 23.425*

6.90 5,575*

87,585 36,713 '

-124,298

. 9.20 29.520*

8.00 3,740*

7.30 25.080*

6.90 6.030' 89,920 31,0b5 120,985 9.20 39,725' 7.00 23,675*-

7.30 27,005*

6.90 6,520*

9i,925 24,016 120.971 9.20 37,200*

7.30 56.985*

6.90 7,G10*

101,225 16,313 117,538 l

i 6% 62.325*

7.00 61,025*

123,350 8,245 131,595 108,000 173,525 195,955 335.630 191,945 1,964,110 2,936,436 4,898.546 14,860 g

845 27,000 4,320 0

0 715 117,515 160,510 0

0 0

0 0

983,760 176.215 135,000 177,&l5 195.955 315.630 192.660 3 065,405 1

i l

=.

i

,1 i

.4

. applications,0fReVenNel A0' Ip 9

m l 'L

.l Years EndedJune 30,1988 and 1987

~

1988 1987=

-Total Operating Revenues.

8491,9H0,615..

$180,059,055 LOperating Expenses:

1 Operation

.j iin Production' i 212,566,884 241,600,163 j

Purchased and Interchanged Power Net (1,868,330) 2,608,075 LI Transmission

.2,373,714

. ' t,821,495 l

i)

Distribution 3,226,692 2,300,421 Customer Accounts 3,390,746 (172,250)

Sales -

356,828 -

317,427 g

. Administrative and General 32,834,086 28,692,720 1

' Maintenance -

34,387,339 -

33.388,056.

e

~ Total Operation and Maintenance Expenses 287,267,959 273,619.107..

!f Sums in Lieu ofTaxes.

3,055,303

. 2,389.6fB Total Operating Expenses.

290,323,262 276,035,770.

Net Operating Revenues

-.201,657,353 204,023,285 '

OtherIncome

- 24,618,712-

- 24,996,744

)

{

i Revenue Available for Debt Service

]

and Other Purposes 226,276,065 229.020.029 Total Debt Service 145,974,914 151,236,930 lease Payments to Central.

5,396,439 5,465,308 '

Principal and Interest on Other Obligations 24,555,116.

25,038,0t /

J Balance After Debt Service, trase Payments, and Other Obligations 50,349,596 44,279,691 Payments to the State of South Carolina 3,002,868 2,003,036 Payment to the Special Rese:ve Fund Net 1,841,074' 1,450,116 '

Mandatory 8% Allocation for Capital improvements 27,827,946 26,761.366 i

Revenue Available for Operating Requirements

$ 17,677,708 '

S14,016,176 y

)

(D This summary has been prepared from the Gnancial statements and other data of the Authority and has not been examined by the independent auditors. This summary presents the net revenues available to the Revenue Fund for purposes such as providing for increases in working capital require-q ments. It differs from the Statement of Reinvested Earnings in that it represents cash transactions on debt senice and, accordingly, excludes non< ash items such as depreciation, costs to be recovered for future revenue, and amortization of debt discount and experw,

/

m

_m___._

.._______.______m._________.m__.___m

t I

o-1 l

Schedide ofRefundedBonds l

As of June 30,1988

(

Un 11wusands) l'

$Grtes 1980lasue 1M1Alasue IMISissue 1981Clssue 1982Alasue IM28 Issue 1982 Ref,tasue 1985 Ref. Issue CallDate July 1,1990 July 1,1991 July 1,1991 July 1,1991 July 1,1991 July 1,1992 July 1,1992 July 1,1995 l

Orleinal Maturity Date Int. Rate Amt int. Rate Amt.

Int. Rate Amt. -

Int. Rate Amt.

Int. Rate Amt.

Int. tate Amt.

Int. Rate Amt.

Int. Rate Amt.

1988 1989 1990 1991 1992 12.00 1,315 12.00 2,335 1993 12W 1,470 12.30 2,590 11.60 1,385 1941 12W 1,635 12.60 2,895 11.90 1,515 l

1995 11.00 3,090 12.10 1,815 1996 11.10 4,000 12.20 2,040 1997 11.20 4,220 12.30 2.295 1998 11.30 4.590 1999 11.40 5,090 2000 11W 12,010 2001 13W 20,000*

l 2002 2003 13 % 20,000*

2001 2005 12 % 40,000*

2006 2007 20ud l

2009 l

2010 10 % 42,725*

2011 2012 9.60 37,235' 2013 9W 28,000*

2014 2015 10.00 20,000*

2016 l

2017 2018 2019 l

t 2020 10 % 42,000*

12.00 89,000*

l 2021 10W S0,000*

13W 100,000*

2022 14W 127,000* 13.00 110,000* 9.70 243,040' 9W 160,510*

Totals Per Series 42,725 42,000 200,000 144,420 151,820 159,010 280,275 160,510

• Term Bmds I

a Total Energy Forecast (GWH)

Calendar litar sooo 4000 sooo sooo io.oco

$2,ooo t4,ooo Ll,(,1gg?j)y ;ayJygggggggggggw

@ '12b3 ' i M M/ WIG $D3NM{$f% 9 lism, ties.. l

" fl' AlU 1..:ll$?@##$$ sh:q istinter - l w:O<l.1,;fR@t$$$M

1398 ;httra. I

:l.~~l? d @ T$$ $ M,

ifs 4/j2;64t. i:1.C[

11 ilMitR$ t%4 it e s /1htri i lx. i. j..', 1.-lf 3 p l:.? $ { S G $ $ $ M M 4 3 @ l.l f:l;7l.77lppfgggggggag 7

'i n t ::1 6113. ' & '} q 1}A%dW$hR$$$$$ M

~

4mt1$5 vlW i b f] L@Q$!g}$$ % :;gSj sposl v4:wntgagggg$) ming Seehi) fV/k s 6t!Mgd@jggllygt$$M

!$ $ $ $6 5 $ % l$$: Di & $$$ $ M G M Total Peak Demand Forecast (MW)

Calendar l' ear 2ooo 21oo 22co 23co 24co 25o0 2664 h

, w..

n y p g g g,,,

.m. ~

n. +, a.,.

w %; %

I

\\

$ j${;pp$, jig ~g,y;,w%KdM)

})b i$pfd%

4 q

c al "wm (l@a my;gQ y

g yy, m sa-sumwe u a m ye w - e m vnnmes (Emi kn@Ky;Q&% @dn, k kY hh;h

$kk

-a. m.m.m,u IC5MS Mb5% NIM ), Y lk's

'$*d i

fiy x

D',

lI?

c

'+ I"'i FinancialStatements

('

South Carolina 1

Public Service Authority '

. Fiscal Year 1988 q

y c

. Report ofIndepomient Certified '

PublicAccountants The Advisory Board -

' The financial statements of the South Carolina and Board of Directors Public Service Authority are intended to present South Carolina Public the financial position and results of operations and changes in financial position of proprietary

~ Service Authority fund types of only that portion of the funds and account groups of the State of South Carolina

~

balance

We have audited the accompNbYe Service that is attributable to the transactions of the sheets of the South Carolina South Carohna Public Service Authority, Authority as of June 30,1988 and 1987, and the related statements of reinvested earnin In our opinion, the financial statements referred accumulated earnings reinvested in the usiness, to above present fairly, in all material respects,

. and changes in financial position for each of the the financial position of the South Carolina three years in the period ended June 30,1988.

Public Service Authorit as of June 30,1988 and

These financial s,tatements are the responsibility.

1987, and the results o[its operations and of the Authority a management. Our respon-sition for each of the changes in its financial [ ended June 30,1988 in sibility is to express an opimon on these financial three years in the perio statements based on our audits.

principles.y with generally accepted accounting conformit We conducted our auhits in accordance'with generally accepted auditing standards. Those i

standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes ex-amining, on a test basis, evidence supporting the 4

amounts and disclosures in the financial stateme,nts. A,n audit also includes assessing the Coopers & Lybrand '

ace,ounting principles used and significant Columbia, South Carolina estimates made by management, as well as August 18,,1988 evaluating the overall financial statement presen.

tation. We believe that our audits provide a reasonable basis for our opinion.

y l

i j

1 E_2____________

1 Balance Sheets

. South Carolina Public Service Authority June 30,1988 and 1987 Assets 1988 1987 (Thousands)

Utility Plant - At Cost:

Electric plant in service

$ 2,121,928

$ 2,050,086 Construction work in progress 78,721 72,415

-l

'Ibtal 2,200,649 2,122,501 l

Less accumulated depreciation 479,872 415,187 l

1 Electric plant - net 1,720,777 1,707,314 Nuclear fuel - net 28,467 20,534 Utility plant - net.

1,749,244 1,727,848 Other Physical Property (Net of Accumulated Depreciation) 368 379 Cash and Investments IIeld by Trustee 305,929 345,828 Current Assets:

Cash and investments held by trustee 35,104 34,775 Accounts receivable, less allowance for doubtful accounts of $1,056,000 in 1988 and $844,000 in 1987 50,283 53,899 Accrued interest receivable 4,004 3,961 Inventories, at average cost:

Fuel (coal and oil) 37,208 29,762 Materials and supplies 10,774 6,142 '

Prepaid expenses 1,898 2,440

'Ibtal current assets 139,271 130,979 Deferred Debits:

Unamortized debt expense 17,720 18,676 Unamortized loss on refunded debt 222,171 230,137 Costs to be recovered from future revenue 224,779 197,347 Other 7,646 3,296

'Ibtal deferred debits 472,316 449,456

'Ibtal

$ 2,667,128

$ 2,654,490 The accompanying notes are an integral part of the finan-ial statements.

43

\\

Liabilities and Capitalization 1988 1987 (Thousands)

Long'1brm Debt:

Priority Obligations 58,565 60,515 Electric System Expansion Revenue Bonds 1,797,545 1,816,090 Subtotal 1,856,110 1,876,605 Electric Revenue Bonds 108,000 121,500 Capitalized lease obligations 68,949 71,755 i

'Ibtal long-term debt 2,033,059 2,069,860 Less:

Reacquired &bt 2,535 2,220 i

Unamortized debt discount and premium - net 25,778 27,271 Long-term debt - net 2,004,746 2,040,369 Accrued Interest on Long'1brm Debt 68,222 71,113 Construction Fund Liabilities - Accounts Payable 2,415 1,737 Other Non-current Liabilities 9,026 6,303 Current Liabilities:

Commercial paper 50,000 50,000 Accounts payable 31,070 28,695 I

Customer deposits 4,971 4,690 Accrued sums in lieu of taxes 1,522 1,146 Other 15,563 7,212

'Ibtal current liabilities 103,126 91,743 I

Commitments and Contingencies Deferred Credits:

Unamortized gain on reacquired debt 420 406 Nuclear fuel settlement 16,572 16,344

'Ibtal deferred credits 16,992 16,750 Capital Contributions - U.S. Government Grants 34,438 34,438 Accumulated Earnings Reinvested in the Business 428,163 392,037

'Ibtal

$ 2,667,128

$ 2,654,400

--===--

-_.__ = - -

' ~

J 2

5tatements ofAccumulatedEarnings Reinvestedin the Business South Carolina Public Service Authority Years Ended June 30,1988,1987 and 1986 1988 1987' 1986 (Thousands)

Accumulated earnings reinvested in the business - -

~ beginning of year -

$ 392,037

$ 353,750

$ 325,545 Reinvested earnings for the year.

39,129 40,290 30,106'

'Ibtal 431,166 394,040

'355,651-Distribution to the State of South Carolina (See note below) 3,003 2,003-1,901' e,

Accumulated earnings reinvested in the business -

end of year

$ 428,163

$ 392,037.

$ 353,750 '

.Notei The distribution to the State of South Carolina is determined utilizing a calculation formula required under the Indenture which is based essentially on operating cash flow and mandatory reserve _ requirements. Such

~

calculation varies substantially from reinvested _ earnings for the year principally due to costs to be recovered from future revenue and working capital requirements.

The accompanying notes are an integral part of the financial statements.

Statements ofReinvestedEarnings South Carolina Public Service Authority Years Ended June 30,1988,1987 and 1986 1988 1987 1986

' Oper:. ting Revenues:

Sales of ele' eity

$ 487,684

$ 475,425

$ 451,537 Other ope.aomg revenues 4,296 4,634 3,463

'Ibtal operating revenues 491,980 480,059

- ' '455,000-

' Oper: ting Expenses:

Operation expense:

Production 212,567-204,600 195,058 l.

Purchased and interchanged power - net (1,868) 2,698 (213)

Transmission 2,374 1,821 1,991 Distribution 3,227 2,300.

2,158 Customer accounts 3,391 (172) 1,850 Sales -

357 318 284 Administrative and general 32,834 28,693 25,231 Maintenance expense

.34,387 33,388 34,596

'Ibtal operation and maintenance expense 287,269 273,646 260,955 Depreciation 66,670 65,033-63,764 Sums in lieu of taxes 3,055

.2,390 2,176

'Ibtal operating expenses 356,994 341,069 326,895 Operating Income 134,986 138,990 128,105 Othir Income:

. Interest income:

Other funds 24,737 25,178 26,833 284 5,459 Borrowed funds Other income (expense) - net (1.

(181)

(146)

'Ibtal other income 24,619 25,281 32,146 Subtotal 159,605 164,271 160,251 Int: rest Charges:

Interest on long-term debt 138,675 144,190 150,224 Other 9.233 9,030 5,983

'Ibtal interest charges 147,908 153,220 156,207 Subtotal 11,697 11,051 4,044 Oth:r, Add (Subtract):

Costs to be recovered from future revenue 27,432 28,921 27,863 Other deductions - net 318 (1,801)

Reinvested Earnings

$ 39,129

$ 40,290 30,106 The accompanying notes are an integral part of the financial statements.

i

/

Statements ofChanges in Financial Position O

South Carolina Public Service Authority

. Years Ended June 30,1988,1987 and 1986 L

1988 1987 1986-i (Thousands)

Funds Provided By:

i Operations:

Reinvested earnings -

$ 39,129

$ 40,290

$ 30,106 Charges (credits) to reinvested earnings not providing or requiring funds:

Depreciation 66,670 65,033 63,764 Amortization of debt discount and expense 2,449 2,408 2,281 j

L Amortization of loss -(gain) on debt

3,533 4,061 1,228' Costs to be recovered from future revenue (27,432)

(28,921)'

(27,863) i

'Ibtal from operations 84,349 82,871 69,516 l

Sale of bonds / notes 528,290 195,955 Decrease (increase) in cash and investments held by 'Ihistee 39,899 (10,465)

(41,779)'

Deferred gain (loss) on debt 4,447 (79,959)

(28,237)

Increase (decrease) in construction fund liabilities

'678 (4,895)

(7,606)

Nuclear fuel settlement 228 217.

173.

'Ibtal funds provided 129,601 516,059 188,022-

' Feds Applied 'Ib:

Increase in utility plant 88,055 46,978 35,857-Retirement of long-term debt 33,995 468,958 177,475 Decrease (increase) in interest on long-term debt 2,891 705 (6,167)

Increase (decrease) in unamortized debt discount and expense 7,924 50 Principal payments - capitalized lease obligations 2,806 2,784 2,716 Distribution to the State of South Carolina 3,003 2,003 1,901 Decrease (increase) other net 1,942 (1,984) 1,370

'Ibtal funds applied 132,692 527,368 213,202 Increase (Decrear.e) in Working Capital

$ (3,091)

$ (11,309)

$ (25,180)

Increase (Decrease)in Working Capital by Component Cash and investments held by trustee 329 1,650 (2,563)

Accounts receivable, less allowance for doubtful accounts (3,616) 1,932 11,877 Accrued interest receivable 43 2,278 (1,190)

Inventories 12,078 (11,107)

(9,993)

Other currert assets (542) 416 617 Accounts payable (2,375)

(5,876) 5,393 Customer deposits (281)

(255)

(735)

Accrued sums in lieu of taxes (376)

(70)

(57)

Commercial paper (25,000)

Other current liabilities (8,351)

(277)

(3,529)

Increase (Decrease) in Working Capital

$ (3,091)

$ (11,309)

$ (25,180)

The accompanying notes are an integral part of the financial statements.

Notes to FinancialStatements June 30,1988 Depreciation is not considered in the cost of service Note 1 - Summary of Significant calculation. This results in timing differences bet-Accounting Policies:

ween costs as defined in the rate-making process and costs determined in accordance with generally.

The South Carolina accepted accounting principles. These differences A - Reporting Entity he " Authority"), a com-are recognized as costs to be recovered from future Public Service Authority (f South Carolina, was t

ponent unit of the state o revenue. The recovery of outstanding amounts created by the 1934 State Legislature. The Board associated with costs to be recovered from future

. of Directors is appointed by the Governor of South revenue will coincide with the retirement of the Carolina. The purpose of the Authority is to pro-outstanding long-term debt of the Authority.

vide electric power to the people of South Carolina.

For the years ended June 30,1988,1987 and Capital projects are funded by bonds issued by the 1986 costs to be recovered from future revenue in-Authority and internally generated funds. The clude'd in the statement of reinvested earnings con-Board of Directors sets rates to pay debt service, sists principally of the difference between deprecia-operating expenses and provide funds required tion and debt service requirements, under bond covenants.

B - System of Accounts - The accounting rec-ords of the Authority are maintained substantially in accordance with the Uniform System of Ac-Note 3 - Cash and Investments Held by counts prescribed by the Federal Energy Regu-Trustee:

latory Commission (FERC)lization and Maintenance

-- Addit,tility Plant Capitaions to plant are recorded at cost, which bonds, debt service funds, other specialYunds and C-U Unex ended funds from the sale of e ansion includes matenal, labor, overhead, and interest cash and securities are held and maintained by capitalized dunng construction. The costs of rep.

trustees and their use restricted in accordance with and minor replace,ments are charged to appropn, airs ate applicable provisions of various trust indentures, operatmg and mamtenance expense. The costs of bond resolutions, Icase egreements, and the rene,wals and betterments are capitalized. The Enabling Act included in the South Carolina law.

ongmal cost of utility plant retired and the cost of Such funds consist principally of investments in removal less salvage are charged to accumulated government securities carned at amortized cost.

depreciation.

CASH - Cash includes $89,043,000 at June 30, D - Depreciation - Depreciat, ion is computed on 1988 and $90,327,000 at June 30 1987 for bond of the van,lme basis over the estimated useful livesprincipal and interest payments due on July 1, d as a stra,ght i

ous class,es of the plant. Annual 1988 and 1987, respectively. Cash is categorize depreciation provisions, expressed as a percent of follows Category 1 includes bank balances entirely average depreciable utility plant m service, were covered by federal depository insurance. Categoh<

approxi,mately 3.3% for each 4 the three y, ears in 2 includes bank balances that are uncollaterahze the penod ended June 30,1988. Amortization e,x-or collateralized with securities held by pledging pense of capitalized leases is included in deprecia' financial institutions but not in the Authority's

. tion expense.

"^*NESTMENTS - Trust indentures and resolu-E - Revenue Recognition - Substantially all 1

whoicsale and industnal revenues are billed and tions authorize the Authority to invest in obliga-recorded at the end of each, month. Revenues from tions of the U.S. Treasury, agencies, instrumen-basis. Fuel costs are reflected m operatm,nthly cycle talities, and certificates of deposit. The Authority's retail customers are recogmzed on a mo g ex-investments consist of U.S. Government securities, penses as consumed.

certificates of deposit and repurchase agreements.

F - Capitalization of Intere t During Construc-The Authority requires that securities underlying t,on - Interest capitalized du..ig construction is repurchase agreements have a market value of at i

the net cost of borrowed funds used dunng least 102 percent of the cost of the repurchase construction.

agreement. Securities underlyinkr repurchase G - Amortization - Unamortized debt discount, agreements are delivered by bro er dealers to the premium and expense are amortized to income over Authorit 's trust agents. At June 30,1988, the the terms of the related debt issues. Unamortized Authorit 's repurchase agreements totalled gains or losses cn refunded debt are amortized t

$14,725, 00.

acted through the rate-makmg pro-income as iml,y over the terms of the new debt The Authority's investments are categorized cess, general below to give an indication of the level of risk tsses.

assumed by the entity at year end. Category 1 in-cludes investments that are insured or registered or for which the securities are held by trust agents Note 2 - Costs to be Recovered from Future in the Authority's name. Category 2 meludes unin-sured certificates of deposit which are collateralized N""""

with securities held by the pledging financial in-stitution but not in the Authority s name.

The Authority's electric rates are established based upon debt service and operating fund requirements.

m,,

3

(p

~1

.1 4

4;p 4

gg :

m.~

4

-'{'

a I.-

M 1988

- Investments Cash -

Total -

f Category Categ7ryl, Category. Category Carrying E rket, 1

.: 2 '

1' 2-1 Vafue Value:

(Thousands);

General Improvement Funds.:..... i_$ 47,880.-

~-$ 200

, $i_5 :

' 47: i$_48,132_1$_48,131 L

^ ~ Debt Service and Special Funds; Indentured Bonds '

7

'. Interest Fund :,..............

'. $ 1,149 '-

" $, l 1,149 ':$ J1,149; Bond Fund.................

L-2,042 2,042 '

2,042 Debt Service...............

2

~;

p Expansion Bonds-8,814 8,814 ?

8,997 ;

'62,658

.'62,658 62,658#

l'

Interest Fund :...............

Bond Fund....... '........... -

-16,320

16,320

.16,320" Debt Service.7..............

130,069 23~

130,092 ;

131,523:

Subordinated Bonds l

Interest Fund...............

4 -

'13,500 J13,500 w 13,500-Bond Fund..................

. 4,202-4,202: '

4,202:

. Debt Service.................

3,737.

, 1,250

' 48:

5,035 -

_ 5,026 '

Other Special Funds.........,..

20,159-5 (6,179)1 13,985.

12,855 l Total.................... _$162J79

$1,250

$__5

_)93J63_ J 1$257,797 3_$258,272 Casii and Securities Held by 'IYustee -

. : $ 32,589.'.:

Revenue Fund.................

$ 27,785 i$

- $ 4,815

$ 32,600:

. Special Reserve Fund'..........

2,442 -

'100 (38):

2,5041 2,502l

, 1 Total....................

_$_ 30,227

$100

$_4.,777

$_35J04 : _$_35,091; 1987 Investments Cash Total-Category Category Category :

Category Carrying Market'-

1 --

2

~1 2

Value -

Value-(Thousands)

General Improvement Funds......

$ 74,682

~ $ 700 689 _$_76S71 J 77,599 ' '

- Debt Service and Special Funds Indentured Bonds -

$.1,191

~ $ _ 1,191 Interest Fund...............

'$~

~$ -

$ 1,191

' Bond Fund...................

1,957 1,957-1,957

- Debt Service '...............

8,806

_ l' 8,807-9,023

- Expansion Bonds Interest Fund................

65,078 65,078 65,078

. Bond Fund................

14,545 14,545' 14,545' Debt Service................

136,025

-47 136,072-139,129

- Subordinated Bonds.

Interest Fund...............

_ 4,624 4,624-

~ 4,624 -

Bond Fund..................

13,500 13,500 -

13,500

- Debt Service...............

3,798 1,200 47 5,045 5,029

l Other Special Funds............ _$172,184 _$1,200

_$96,373

_$269,757 _J272J33 ; J 23,555

__{4 617) 18,938 18,657 1

Total.................... _

__ Cash and Securities IIeld by'IYustee Revenue Fund................

$ 25,522

$ 3,148

$ 28,670

$ 28,684 i

r'

'Special Reserve Fund..........

6,104 1_

6,105 6,095 l

Total....................

__$ 31,626 y441 _$_34,775

$ 34J79 i

a:

,b_____

5

(

f 49 ;

1 l

J Note 4 - Long-Term Debt Outstanding:

June 30 l

1988 1987 l

~ (Thousands) i

-Priority Obligations:-

Electric Revenue Bonds,' Series ~ of 1950, bearing interest at 2.70% and due 1988 to 1993.

8,705 $

9,005-1 Electric Revenue Bonds, Series of 1967, bearing interest at -

4.10% and due 1988 to 2006

~ 47,790

-48,475

. Electric Revenue Bonds, Refunding Series of 1973, bearing interest at 5% and due 1988 to 1989 -

2,070 3,035

Total Priority Obligations -

.58,565 60,515, i,

. Electric System Expansion Revenue Bonds:

L L1973 Series, bearmg interest from 5.20% to 5.75% and due 1988 to 1993 and 2013 92,000 -

93,185 -

- 1974 Series, bearing interest from 6% to 6.75% and due 1988 to 1999 and 2014 101,595 102,845

- 1977 Refunding Series, bearing interest H

from 5% to 6% and due 1988 to 1997 and 2002 and 2016 190,135 193,255 1977 Series, bearing interest from 4.60%

to 5.75% and due 1988 to 2002 and 2017 112,330 112,820 1978 Series, bearing interest from 4.90%.

to 5.875% and due 1988 to 1998 and 2008 and 2018 194,970 196,040 -

1979 Series A, bearing interest from 5.60%

to 6.875% and due 1988 to 2003 and 2009 and 2019 105,190 _

106,255

• L1980 Series A, bearing interest from 9.00%

to 9.80% and due 1988 to 1995 and 2002 28,775 29,650

• 1981 Series A, bearing interest from 8.00%

to 9.75% and due 1988 to 1997 and 2002 31,150 31,830

• 1981 Series C, bearing interest from 11.00%

to 11.75% and due 1988 to 1991 4,085 4,870

• 1982 Series A,' bearing interest from 10.50%

to 11.75% and due 1988 to 1991 7,340 8,805'

'

• 1982 Series B, bearing interest from 10.25%

to 11.25% and due 1988 to 1992 4,770,

5,425

• 1982 Refunding Series, bearing interest from 7.50% to 9.375%

and due 1988 to 1994 and 2002 13,290 13,725

'

• 1985 Refunding Series, bearing interest from 6.75% to 9.375% and due 1988 to 2000 and 2005 14,860 -

15,295 '

1985 Refunding Series A, bearing interest from 6.25% to 9.20% and due 1988 to 1999 and 2003 and 2021 173,525 -

177,845-1986 Refunding Series A&B, bearing interest from 6.75%-

' to 8.10% and due 1991 to 2008 and 2019 and 2020 195,955 195,955 1986 Refunding Series C&D, bearing interest from 4.50% to 7.30%

and due 1988 to 2007 and 2012 and 2021 and 2022 335,630 335,630 1987 Refunding Series A, bearing interest from 3.90% to 7%

- and due 1988 to 2007 and 2012 and 2021 and 2022 191,945 192,660 j

Total Electric System Expansion Revenue Bonds 1,797,545 1,816,090

~ Electric Revenue Bonds,1985 Series, bearing interest from 6.75% to 8.70% and due 1988 to 1995 108,000 121,500 Capitalized Subordinated Lease Contracts, payable

' 1988 to 2015 68,949 71,755

- Total Long-Term Debt

$2,033,059 $2,069,860 ISee schedule below for refunded debt.

I

l

/

\\

EO l

The Authority refunds and defeases debt securities have been placed in an irrevocable trust -

' primarily as a means of reducing debt service, to provide for all future debt service payments on -

thereby postponing or reducing future electric rate the original bonds. As a result the ori nal bonds

- adjustments. In fiscal year 1987, the Authority are considered defeased and t!'e liabili for those issued $528 million in Electric System Expansion

. bomls has been removed from the Aut ority's Bonds to advance refund certain maturities of the accounts.

1982 and 1985 Refunding Series Bonds (the Although the advance refunding resulted in a original bonds) aggregatmg $441 million. The new deferred accounting loss of approximately $81 bonds bear an average interest rate of approx-million, the Authonty was able to reduce its total imately 6.9%. The original bonds averaged app $500 -

debt service over the next 36 years by approx-rox-imately 9.6%. The net proceeds of the bonds, imately $164 million and obtain an economic gain million after payment of $5.8 million and $10.2 million (m underwriting fees and original issue dis-(the difference between the present values of the debt service payments on the old and the new debt) count) plus an additional $3.8 million were used to of approximately $56 million.

purchase U.S. Government securities. The Amounts outstanding, original loss on refunding, and the unamortized loss at June 30,1988 follow:

Rcfunded Refunding Refunded Amount Original Unamortized Issue Bonds Outstanding Loss Loss (Thousands) 1977 Refunding 1971 and 1976 Series

$ 11,244 7,079

$139,000 of the 1981 Series B 1985 Refunding Series A and

$ 40,000 of the 1981 Series C 179,000 27,853 8,471 Cash Defeasance

$ 20,000 of the 1982 Series A 20,000 2,763 2,505.

1986 Refunding Series A&B

$ 42,725 of the 1980 Series A

$ 42,000 of the 1981 Series A

$ 61,000 of the 1981 Series B

$ 4,420 of the 1981 Series C i

$ 7,820 of the 1982 Series A

$ 9,010 of the 1982 Series B 166,975 28,812 43,736 1986 Refunding Series C&D 1982 Refunding Series

($100,000 of the 1981 Series C l

and t

$127,000 of the 1982 Series A) 507,275 110,372 104,392 1987 Refunding Series A 1985 Refunding Series

($150,000 of the 1982 Series B) 310,510 60,029 55,988 Total

$1,183,760

$ 241,073

$ 222,171 The Authority's bond indentures provide for cer-issue additional parit among other things, y expansion bonds if, tain restrictions, the most significant of which are:

the Authority's Con-The Authority covenants to establish rates sulting Engineer certifies that net revenues and charges adequate to provide revenues sur.

(as dermed) in each succeeding fiscal year ficient, among other things,ty ob to p debt ser-after the date on which such additional bonds vice when due on the priori tions and are sold to and including the later of (a) the expansion bonds, to make require payments third succeeding full fiscal year after such when due into the lease fund and the capital date or (b the first full fiscal year after the estimated)date of commercial operation of any improvement fund, and to pay the costs of operation and maintenance of the Authority's power plant to pay the cost of construction of electric system and all necessary repairs, which additional expansion bonds have been, replacements, and renewals thereof, are being, or are then authorized to be issued, The Authority is presently required to pay shall be at least equal to the sum of the annually into its capital improvement fund an amounts required m such fiscal year for (i) amount which, together with the amounts de.

debt service on the priority obligations and posited therein in the two preceding fiscal the expansion bonds then outstanding, bein payments into the lease fund,yet issue years, is at least equal to 8% of the Authori-issued, or authorized but not ty's gross revenues (as defined) in the three and preceding fiscal years. The Authority may payments into the capital improvem(iii) ent fund.

i

51 Maturities of electric revenue bonds, priority provides for delivery of uranium, long-term obligations and expansion bonds during the years deliveries of equipment and services (including con-ending June 30,1989 through 1993, are, as follows:

version and fuel fabrication) at a discount. The Authority has received approximately $10,243,000 Electric Priority in cash which has been recorded in Revenue Obligations &

deferred credits. Beginning in fiscal year 1989, the Bonds Expansion Bonds Total credits will be utilized to reduce fuel costs durmg reloading periods at the Summer Nuclear Station.

(Thousands)

June 30,1989 1 1% 500

$ 18,355 3 31,855 Note 6 - Commercial Paper:

June 30,1990 13,500 19,545 33,045 The Board of Directors authorized the issuance 2 June 30,1991 13,500 20,860 34,360 June 30,1992 13,500 24,155 37,655 commercial paper not to exceed $50,000,000. The paper is issued for valid corporate purposes with a June 30,1993 13'500 25,840 39,340 term not to exceed 270 days at an annual interest Total

$ 67,500

$ 108,755

$ 176,255 rate not to exceed 9.5%. As of June 30,1988 and 1987, the effective interest rate on outstanding I

borrowings was 4.96% and 4.47%, respectively.

During 1988 and 1987 the average effective in-terest rate was 4.94% and 4.18%, and the average Note 5 - Summer Nuclear Station:

maturity was 38 and 44 days, respectively. The The Authority and South Carolina Electric and average amount outstanding during 1988 and 1987 Gas (SCE&G) are parties to a joint cwnership was $50,000,000.

At June 30,1988, the Authority had a Revolving I

agreement providing that the Authority and Credit Agreeme,nt with variou,s lenders of SCE&G shall own the Summer Nuclear Station with undivided interest of 33%% and 66%%,

$50,000,000., This Agreement is used to support the Authority s issuance of commercial paper. Under l

respectively. SCE&G is solely responsible for the I

design construction, budgeting, management, the Agreement the Authority is required to pay a eration, maintenance, and decommissiomng of fee equal to 1/8 of 1% on the total l ne of credit, ohe Summer Nuclear Station, and the Authority is plus 1/8 of 1% on the average prmcipal amount of t

obligated to pay its ownershi share of all costs the paoer outstanding. No loans were outstandmg relating thereto. The Autho receives 33%% of under the Agreement at June 30,1988.

l the net electricity generated. t June 30,1988 and 1987, the plant accounts included approximately Note 7 - Contracts with Central

$426,142,000 and $426,070,000, respectively,lud.

Electric Power Cooperative, Inc.:

representmg the Authority s mvestment, me mg capitalized mterest, in,the Summer Nuclear Sta-The Authority has lease contracts with Central s mterest m Summer Nuclear tion. The Authority'd solely by long term debt. For Electric Power Cooperative, Inc., covering a steam Station was finance electric generating plant, transmission facilities, the years ended June 30,1988 an,d June 30,1987, and various other facilities. The lease terms range the Aut,hority's operation and mamtenance ex-from seven to twenty-seven years. Quarterly lease l

penses included $36,695,000 and $,29,335,000 payments are based on a sum equal to the mterest respectively, for operation and mamtenance ex-on and principal of Central's indebtedness to the penses of the Summer Nuclear Station.

Rural Electrification Administration for funds bor-Nuclear fuel costs are bemg amortized based on rowed to construct the above mentioned facilities.

energy expended which includes a component for The Authority has an option to purchase the leased estimated disposal costs of spent nuclear fuel, properties at any time during the period of the These amortization are meluded m fuel expense lease agreement for a sum equal to Central's in-and are rec, overed through the Authority's rates.

debtedness remaining outstanding on the property Decommissiomng costs (costs to take the plant out involved at the time the option is exercised or to of service in the future) for the Summer Nuclear return the properties at the termination of the Authority's % ownersh,,o be $314 milhon, for theip, based on a 30 year useful every option to acquire ownership of such facilities Station are estimated t lease. The Authority plans to exercise each and life with decommissionmg expected to commence in prior to expiration of the leases.

the year 2013. The Authority accrues for its share Power supply and transmission services are pro-of the estimated decommissionmg costs over the re-vided to Central in accordance with the Power maining life of the facility. These costs are bemg System Coordination and Integration Agreement recovered through the Authority's rates. The dated January 19,1981, and amended as of March estimated decommissionmg costs are periodical,1y 31,1988. The amendment provides for a change in reviewed and adjustments rec,orded as, appropriate.

the Authority's rate-making methodology for Cen-The suppher under the ongmal uramum supply tral. In addition, the Authority will be the sole sup-contract breached the contract m 1975 due to plier of Central's energy needs excluding what uranium market conditions. SCE&G initiated action Central receives from the Southeast Power Ad-seeking specific performance of the contract provi-ministration and SCE&G.

sions, and a final settlement was reached and ap-proved by all parties in April 1980. The agreement

M Future minimum lease payments on Central employer public employee retirement system. The leases, at June 30,1988, were:

payrou for employees covered by the system for l

Years ending June 30:

Amount the years ended June 30,1988,1987 and 1986 was j

$45,959,000, $42,484,000 and $38,898,000, a

(Thousands) respectively.

l Employees who ret,re at or after age 65 or have 1989 i

5l335 30 years of service are entitled to a retirement 1990 5 258 1991 5,258 benefit, payable monthly for life equal to 1.25 per-1992 5,258 cent of the first $4,800 of their final average salary 1993 5,258 and 1.65 percent of the fin.I average amount in ex-Thereafter 75,195 cess of $4,800. Final average salary is the employee's average salary over the twelve highest l

Total minimum lease payments 101,562 consecutive quarters. Benefits fully vest on Less, amounts representing interest 32,613 reaching 5 years of service. Vested employees may retire at or after 60 and receive reduced retire-Balance at June 30,1988

$ 68,949 ment benefits. The System also provides death and disabililty benefits. Benefits are established by Leased property under capitalized leases and State statute.

related accumulated amortization included in utility Employees are required by State statute to con-

]

plant at June 30,1988 totaled $102,400,000 and tribute 4 percent of the first $4,800 and 6 percent

$42,700,000, respectively, and at June 30,1987 of salary greater than $4,800. The Authority is re-totaled $102,500,000 and $39,900,000, respectively.

quired by the same statute to contribute 7 percent 1

of total payroll. The contribution requirement for

{

Note 8 - Commitments and Contingencies:

each of the years ended June 30,1988,1987, and 1986 was $3,286 000, $3,098,000 and $2,841,000 BUDGET - The Authority's construction budget from the Authority and $2,595,000, $2,386,000 and provides for expenditures of approximately

$2,180,000 from employe,es.

$79,000,000 during the fiscal year ending June 30, An actuarial valuation is performed for the 1989, and $199,100,000 during the two fiscal years System annually. At the most recent valuation,

thereafter.

date, June 30,1987, the pension benefit obligation DAM REINFORCEMENT - During 1982, for retir,ed and active members was approximately FERC notified the Authority that the Pinopolis

$6.4 bilhon. The amortized cost of assets of the West Dam and the Santee North Dam, which form System was approximately $4.8 billion. The unfund-a part of the Authority's electric utility system, ed pension obligation was approximately $1.6 possessed marginal seismic stability under ap.

bilhon. The pension benefit obligation is a standar-plicable design earthquake criteria. FERC indicated dized disclosure measure of the present value of f

Jected salary m,its, adjusted for the effects o pension benef that remedial measures should be undertaken by the Authority to provide an increased level of seismic stability.

the future as a result of employe,e service to date.

The preliminary design on the reinforcement of The measure, which is an actu,arial present value of the Pinopolis West Dam was com credited projected benefits, is mtended to help,

Army Corps of En 'neers (Corps)pleted by the U.S.

users assess, the System funding status on a gomg-

, and a contract was awarded in A il 1988 by the Corps. The con.

concern basis, assess progress made in ac-struction of the b ster is the responsibility of the cumulatmg sufficient a,ssets to pay benefits when Corps and is expected to cost the federal govern.

due, and make comparisons among public employee ment $28.3 milhon, including the engineermg retirement systems. The System does not make design. Construction is projected to last three separate me,asurements of assets and benefits years.

payable for mdividual employers. The Authority's An " Emergency Action Plan" was developed for contribution represented approximately two per-implementation in the event of a failure of the cent of the total contribution to the, System.

Ten year historical trend info system's progress in accumulatm,rmation showing Santee North Dam. In 1986, FERC tentatively ap.

g sufficient assets i

proved the plan with 22 modifications. The Authority agreed to all of the modifications except to pay ' benefits when due is presented in the one regarding " strict liability" which was contested system s June 30,1988 comprehensive annual in Federal Court. On July 5,1988, an order was Imancial report.

received from the Federal District Court upholding the Authority's position and remanding the case to Note 10 - Major Customers:

FERC. Based on the facts as they currently exist, management believes that any cost incurred by,the Sales to the Authority's two major customers for Authority related to the, dams would not materially the years ended June 30, were:

affect the financial position of the Authority.

1988 1987 1986 (Thousands)

Note 9 - Retirement Plan:

Central Electric Power Cooperative, Inc. $ 203,000 $ 207,000 $ 193,000 Substantially all Authority full time employees Al ma S th System (gicipate in the South Carolina Retirement must pa System ), a cost-sharing multiple-

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t Canoll A. CampbellJr.

Governor

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tt John T. Campbell T.Travia Medlock SecretaryofState Attorney General ForAdditional

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Jeny L Stafford YlI N

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(803)'7614 051 Grady L PattersonJr Earle E. Monis Jr.

State Treasurer C<nnptroller General

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Changesin theBoard Management

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There were two changes in William C. Mescher Ronald T. Nolte Santee Cooper's Board af Direc.

President and Chief Vice President s

&uutin O#ur Co@ orate Foucasting,

' tors during the past fiscalyear.

Rates, and Statistics Columbia attorneyJohn Ra.mey Kenneth R. Ford was appointed to represent the Becutive Vice President Robert E Petracca 2nd Congressional District, con-Finance Vice President l'

sisting oflxxington, Richhtnd, Property and Transportation Bamberg, Orangeburg, and Joe C. Nonnan l

&ecutin Hu Pusident Bymn C. Rodgers Calhoun counties. A partnerin CommercialOperations Vice President the Demo and Raineylaw firm, he Engineeringand is also president of Carolina Robert E. Rainear Construction Management Capital Corporation. Rainey is a

&ecutive Vice President Certified Specialist of taxation law Engineeringand Operations Joseph P. Thomas and a fellowin the American vice President College of Tax Counsel.

Rpbert V. Tanner Planningand Executive Vice President Energy Control D. Gene Rickenbaker was Production appointed to represent the 5th Curtis L Williamson Congressional District consisting E Eugene Williams Vice President of Cherokee, York, Chester, Senior Vice President Harry-Georgetoten Division Fairfield, I;tncaster, Kershaw, Governmental Afairs and Commun#y Relations H. Roderia Mun hison Lee, Sumter, and Chesterfield Treasurer counties. He.is a Sumter attorney Charles H. McGlothlin and former chairman of the S.C.

General Counsel Elaine G. Peterson Department of Parks, Recreation, Controller and Tourism Commission.

Albert Boyt Jr.

l Rickenbakeris a memberand past Vice President Jeny L Stafford Transnrission Operations Dimctor, Co@ orate president of the Sumter Com-Communications mittee for Progress, and als Emily S. Hmwn serves on the board of trustees of Vice President and l

Tuomey Hospitaland the board Corporate Secretary of directors of the Sumter Cham-ber of Commerce.

T. Graham Edwards Vice President Accountingand Finance Bill McCallJr.

Vice President Production Operations l

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Dwight A. IIolder WalterT. Cox Ilaroki M. Robertson Robert D. Bennett Chairman 1st Vice Chairman 2nd Vice Chairman Representing the electnc cooperatwes Representing the 3rd Congresmonal Distnct Representing the 1st Congressional Dstnct of South Carchna Abbeville. Aiken. Allendale. Anderson Beaufort.Chareston Colleton.Dorchester.

Barnwell.Edgeheld Greenwood.McCormick.

Hampton, and Jasper counties Oconee. Pickens and Saluda counties g

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1 Albert C. Gossett George W. Jones Jr.

Eugene R Oliver John S. Rainey Representing the 4th Congressional Distnct Represent;ng Horry County Representing Berkeley County Representing the 2nd Congressional Distnct Greenulle Spartanburg and Umn counties Bamberg. Calhoun. Lexington. Orangeburg and Richland counties l[" V -$;

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D. Gene Rickenbaker Henry B. Rickenbaker JohnnieJoe Young Representing tae 5th Congressional Distnct Representmg the 6th Congressional Distnct Representing Georgetown County Cherokee Chet,tet.Chesterheid Fairheid Berke (e) Clarendon Darkngton Dalon i

Kershaw Lancaster.Laurens Lee Florence Georgetown Horg Martboro I

Nev&oN Sumter and York counties Manon and Wilhamsburg counhes

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3% Santee Q#7' Cooper s

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