NLS8400129, Annual Financial Rept 1983
| ML20084J243 | |
| Person / Time | |
|---|---|
| Site: | Cooper  |
| Issue date: | 12/31/1983 |
| From: | Pilant J NEBRASKA PUBLIC POWER DISTRICT |
| To: | NRC OFFICE OF ADMINISTRATION (ADM), Office of Nuclear Reactor Regulation |
| References | |
| NLS8400129, NUDOCS 8405090047 | |
| Download: ML20084J243 (43) | |
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O 231 t % #4 5_. PDR ADOCK 05000290 <- ' i I PDR l
Year At A Glance-Electric System Kilowatt-Hour Sales . 8.98 Billion Operating Revenues . . $327.4 Million Operating Expenses . . . $301.3 Million Cost Of Power Purchased And Generated (Including Nuclear and Power Supply Systems) . . $239.4 Million Net Revenues . . . . $ 17.1 Million Debt Service Coverage 1.77 i l I l Reference Guide Year At A Glance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1 Officers and Statement of Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 2 Boa rd of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 3 Message from the Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 4-5 Message from the General Manager . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 6-7 198 3 in Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 8 19 Financial Commentary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 20 Fina ncial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 21 -3 7 Ma p of System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 3 8-3 9 Statistical Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 40-41
- 1 1
Nebraska Public Power District Statement of Purpose The Nebraska Public Power District is a public corporation and political subdivision of the State of Nebraska. Control of the District and its
- operations is vested in a Board of Directors, consisting of 11 members popularly elected from districts comprising sulxlivisions of the District's chartered territory. These districts encompass 85 of the state's 93 counties and portions of two other counties. The District has the power, among other things, to acquire, construct, and operate generating plams, transmission lines, substations, and distribution systems, and to purchase, generate, distribute, transmit, and sell electric energy, both at wholesale and retail, for lighting, power, heating, and other purposes. Management and operation of the District is accomplished with a staff of approximately 2,000 persons.
OFFICERS Fred A. Herrington, President Leslie S. Taylor, First Vice President Donald E. Schaufelberger, General Manager Ralph E. Holzfaster, Second Vice President Theodore M. Kyster, Assistant Treasurer David L. Duren, Secretary Robert D. Malmstrom, Controller Bernard M. Delay, Treasurer Janet H. McQuistan, Assistant Secretary GENERAL COUNSEL Gene D. Watson 2
l l 1 l The Nebrastra Public Power oistrict's BOARD OF DIRECTORS ! George ll. Barber Wayne E. Boul Bernard M. Delay Dasid L. Duren Heatru e. Iles Inc al Ceartrat for South brour Cott, Attorner Nort'u ll li.tnker Colornhus. ( vittlieti l'ubir< . < ount. int i l . _
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1:e. . ,A Bruce W. Gustafson Fred A. Herrington Ralph E. liolziaster George W. Knight I ful<irrev. l.wner-Rant her Iint nin. Hu,rnv~~rnan l'.nton. Iarrver- Aurthu~oner~m.un Iin< oln. Hurniv~ sin.nn
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., A Ihomas (). Michels Leslie S. Tas for kvarner . Inemeer \ ork. Hu,mv~~nu u d*
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n Message from the Board of Directors There are a variety of ways to gauge the degree of success of an electric utility during any particular year, but one of the measures that has survived the test of time is the rate structure. Electric energy rates have been on a veritable roller coaster over the years. From the 30's through the mid 50's rates for electricity actually declined. Then through the 60's there was an era of relatively stable rates, but this period gave way to increasing rates due to the impact of the Arab oil embargo and an inflationary spiral where double digit rafe increases were not uncommon. With the trend toward conservation and a recession, energy demand has decreased from earlier expectations. This lends itself to the period of relative stability in the rate structure. NPPD has followed this same industry pattern of rate change over the years, but we take particular pride in the fact that, among Nebraska's major electrical suppliers, rate increases the past two years for our wholesale and retail customers have been among the smallest. We have been able to hold down rate increases despite the fact that unexpected problems resulted in lower-than-projected generation from our low cost nuclear facility during 1983. Debt service associated with new resources has a major effect on rates. Not since our Gerald Gentleman Station Unit No. 2 went into commercial operation in lanuary,1982, have we added a major power supply resource to our system nor do we anticipate adding a major resource until 1989 when the MANDAN transmission line is currently expected to be completed. Foresight attributable to previous boards and management has also had a positive effect on rates. The District is in a temporary surplus condition due to the completion of Gentleman Station Units 1 and 2 which have proven to be low-cost resources when compared with similar coal-fired plants in the region. The frugal, yet responsive, operation of this utility is a policy set by this board that has had the enthusiastic support of management. Other employees have followed the lead of management in responding to belt-tightening measures. A reduction in the number of employees-with the exception of our nuclear operations-and the consolidation of some offices during the year are partially due to the current trend toward a reduced growth in electrical demand. Our 1983 retail rates increased at the smallest average level since 1974. The rates were based on revenue requirements of $2.6 million more than 1982's requirements and resulted in an average 2.1 percent increase for retail residential customers. The 1983 firm wholesale rate increase averaged approximately 5.9 percent which was one percent less than had been anticipated when the two-year l wholesale rate was originally established in 1981. The 1984 retail rate increase, not including the Production Cost Adjustment (PCA), will average approximately 3.3 percent more than the 1983 rates. The 1984-85 Cost Analysis indicated that wholesale rates would need to be increased 4
an average of approximately one percent in 1984 over the 1983 rates and approximately 1.5 percent in 1985 over the 1984 rates not including PCA. The rates are predicated on projected increases in kilowatt-hour sales of 4.8 percent from 1983 to 1984 and 3.4 percent from 1984 to 1985. The PCA factor continued to be a credit on electric bills during the year. This is because there is excess revenue in the PCA Account which was established to accumulate excess or deficient funds collected from customers in the rate base for fuel or other related generation production costs. At the end of 1983, the accumulated balance in the PCA Account was a surplus of $12.1 million which will again require a PCA credit during 1984.
. Although cost control and spending reductions are always a paramount consideration for this Board, there are other effective methods to help reduce customer costs.
One primary method is the improvement of our system load factor. Efforts to implement a system wide load control program with our wholesale customers continued during the year. In addition to our existing rctail off-peak promotion program, we implemented a cooperative advertising program with our wholesale customers to encourage the utilization of electric heat in homes and businesses throughout our service area. Nebraskans, like other people throughout the nation, are faced with uncertain and many times rapidly rising natural gas rates. Due to our ideal mix of generating fuels-including hydro-our winter rates place electric heat in a competitive position with other heating fuels. It is essential that we continue to monitor opportunities to reorganize and revitalize our utility in order to enhance the operation of the District to meet the needs of our business. We will continue to work with management in evaluating our operations to determine what additional cost reduction measures we can take to lower our cash -requirements with minimal impact on the services we provide to our customers. W=, h$ f u 7 f, b h) LQ. B-/g2'2?- a
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e Message from the General Manager ,
.. . b ,4 g 1983 marked the first year of my tenure as General Manager of Nebraska Public Power District. It was a busy year, but also a very rewarding year. Many of the challenges and problems that developed during the year were successfully overcome, and this utility is well-prepared to face future challenges and successfully achieve its goals.
One of the truly exciting events occurred in October, when the Newcomen Society of the United States bestowed upon our utility an honor placing us among the nation's leading industries and institutions. \Ve were honored at a dinner in Lincoln attended by hundreds of national and state business, industrial, professional, and political leaders. I know that the nearly 2,000 employees of NPPD shared in my pride, for they are the people who make our utility what it is today. \Ve also remember those before us who had the foresight and perseverance to bring to fruition their dreams of electric power generation and irrigation in Nebraska. l During the year,some difficult decisions were made.\Ve made management and personnel changes that were required to assure the continued smooth functioning of the District. Additionally, there was a planned reduction in staff concurrent with the trend towards lower energy growth. Some of our smaller offices were consolidated, and this resulted in a further reduction of our work force. These changes were all made as part of the goal to achieve as efficient an organization as possible. \ve have the satisfaction of knowing that all of the actiops taken were for the positive benefit of our ratepayers and customers. The District commissioned a consultant to perform an appraisal of its nuclear organization and functions. As a result of this appraisal, a new division, called the Nuclear Power Group, was formed. One of our veteran employees, Larry Kuncl, was named to head this division as Assistant General Manager / Nuclear. The decision to form a separate Nuclear Power Group was a commitment by our Board of Directors and management that their keen interest and support of the total operations of our nuclear facility would be maintained. i l A direct result of the reorganization was a commitment by the District to increase the size of its nuclear staff, both at the plant site and in the General Office support groups. At year-end, the new organization was making significant progress, and the addition of staff personnel is expected to be completed during 1984. The District has an excellent nuclear operating record and intends to continue and enhance that record. 6
1 A significant item that occurred at our Cooper Nuclear Station was the discovery of what is commonly referred to as intergranular stress corrosion cracking during the annual refueling outage. These microscopic cracks were discovered in the pressure piping system and are a phenomenon that ha3 been evident at other boiling water reactor plants. Weld overlays were used as a temporary repair for the pressure piping, and the plant was out of service from April 30 to September 4. The cost of the temporary repair was approximately 57 million. The plant is currently operating and will continue to operate until the fall of 1984 when a major shutdown will occur. During that shutdown, the pressure piping will be replaced with piping of improved material and design. Also during the shutdown, a Plant Management Information System will be installed, which involves the replacement of the process computer with a unit of significantly more capability to be used to perform additional, necessary functions. Fortunately, we are in a period of excess generation capability on our system and in the region. With this surplus capability, much of which uses low-cost fuel, the District met its peak demand with limited use of high-priced fuels and without expensive purchases from outside sources. Although August was extremely hot and dry, we feel existence of the federal government's Payment-in-Kind agricultural program, which removed irrigated acres from production, was instrumental in preventing us from reaching our projected 1983 summer peak demand. Another important personnel change during the year was the appointment of William Merrill, a 24-year employee of the District with experience in engineering and system operations, to the position of Assistant General Manager / Operations. It is anticipated that Mr. Merrill's expertise will be of great assistance in accelerating the progress of the MANDAN Project. The MANDAN Project is a proposed 500 kV transmission line which will connect Manitoba, Canada, North Dakota, South Dakota, and Nebraska to permit participating utilities to exchange surplus power and energy on a seasonal basis. The District's two 650 MW coal-fired units at Gerald Gentleman Station performed well during 1983, and several new records were set. The plant produced 8.4 percent more energy and burned 7.9 percent more coal than in 1982. The plant's heat rate improved 1.1 percent, and unit trips were reduced 32 percent from 1982. The plant is a valuable low-cost generation source for our ratepayers. During the upcoming year we will continue to analyze and study various segments of the operation of the District in order to make short- and long-term improvements. A major emphasis will be on the study of organizational structure and procedures. I am convinced that such efforts will be of great value to all the employees and will enable them to better carry out their respective duties. Such efforts will also be of great value to the ratepayers and will enable the District to provide them with continued dependable electric service at reasonable rates. I have seen tremendous growth during my 34-year career with this utility, and I am extremely proud to be associated with it. The District's employees, past and present, have made the District a leader in the utility industry because of their dedication and hard work. I anticipate that this tradition of service by the District's employees will continue into the future. y
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General Atanager 7
l 1983 in Review e 1981, qc ,. 4___ r Uhwtru :eHea.t:ProgranM g. ww mx RetarlF . -. S h h k;_ yh._; -iy :i q $ d,Idy ,[
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- Note: Total equipment installed cu eeds notal installations j} _
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4 @. .-.no 14 M t/ Kilowatt-hour sales in 1983 totaled 8.98 billion compared to 9.15 billion .in 1982. x la.s.di_ ' I The kilowatt-hour sales were 1.8 percent !
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creased a dramatic 80.8 percent in 1982 over Q lw. . .. i7 t. Q ' 1981 and thus the 8.3 percent decrease in this
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weather, maintenance outages, and forced
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tirm u holesale sales to municipalities.
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. - 4. ..q34? cent more electricity during 1983 than 1982.
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f@ g j 1 Cooper Nuclear Station. The bonds, pur-
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< j Money from the bond proceeds and other l d available funds will be used to complete con- :
Y j struction of the nuclear facility and to repay
] $22.8 million in two-year notes issued by l j Morgan Guaranty Trust Company in 1981.
j Proceeds of these notes were also used for construction of the nuclear facility. NPPD paid more than $12 million to cities, towns, counties, and school districts in its service area during 1983. County treasurers in 70 counties received in-lieu-of-tax pay-ments in excess of $205 thousand. In addition,
-, ~ . $3.7 million in gross revenue payments was distributed to county treasurers in 64 Ne-T. M. Kyster Assistant General Manager braska counties where there are cities or l finance and Administration villages served under lease agreements or at retail by NPPD. Money from the payments The largest percentage increases in use by is distributed by county treasurers to the retail customers came in irrigation-up 15.2 counties, cities, villages, and school districts percent compared to the previous year-and according to a prescribed formula relating to industrial-up 12.5 percent. Generally, the mill levies.
increase in irrigation use was due to a hot and Two hundred seventeen (217) Nebraska dry summer even though the Federal cities and villages received $8.1 million as a Payment-in-Kind (PIK) Program resulted in result of agreements leasing their electrical less irrigated acres. Mainly responsible for the distribution systems to the District. increased industrial consumption was a An intensive promotional campaign aimed turnaround in the economy. at improving the system load factor by en-Electric System operating revenues in 1983 couraging installation of electric heat appears j rose to a new high of $327.4 million which is to be paying dividends. Efforts to balance the an increase of 4.6 percent over the 1982 figure winter load with the summer load resulted in of $313.1 million. an 11 percent increase in the total number of Electric System operating expenses for the electric heat installations in 1983 compared to year were $301.3 million which represents a 1982 among our retail customers. The heat 5.6 percent increase over 1982's figure of pump continues to be the most popular
$285.4 million. method of electric heat installation with an Operations of the Electric byem resulted in increase of 54 percent in the number of heat l
- net revenues of $17.1 milhon for 1983 which, pumps installed during 1983 over a when adjusted for noncash items as provided year earlier.
in the District's revenue bond resolution, At year's end, we had 16,304 total electric l resulted m a debt service coverage of 1.77. heating installations on our retail system rep-The proceeds from the sale of $24.5 million resenting 296,993 kilowatts. We also imple-in long-term revenue bonds during 1983 will mented a co-op electric heat promotional l be used in connection with construction at campaign with our wholesale customers. 9
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sion f acilities be made-based upon the best i available information. The District must look ahead five, ten, and even twenty years in order to plan for future f facilities. Some facilities require up to 12 years l from the decision to proceed with a project j until the project is ready for service. Many changes take place within this time period. u.1 D. A. Blatchford Reliability of electric service to the District's < Assistant General Manager Corporate Servic es wholesale and retail customers continues to be important. This requires the coordination Retail electnc rates for the District's of operat. ion between the generation and 107,511 retail customers m 1983 were . . transmission personnel to maintain system approximately 2.1 percent above 1982 rate reliabilig levels. Firm uholesale rates m 1983 were With current surplus capacity available, the approximately 5.9 percent above 1982 District, during 1983, sold a block of partici-rate levels. During 1983, the District-in accordance pation peer to Sunflower Electric Coopera-tim in Kansas during the summer season. with rate covenants in the firm wholesale Since other utilities are in the same position, power contracts-prepared a cost analysis for the rate period 1984-1985. This s udy resulted the short-term market for the District's excess in a forecast of modest increases in wholesale capacity was very limited. rates for 1984 and 1985 and the Board of Considerable time was required of District Directors approved new rates for 1984 and personnel active on various Mid-Continent 1985 based on the cost analysis. Ama Power Pool (MAPP) committees and A Wholesale Customer Committee, com- ode task tmms, prised of 10 representatives of the District's firm wholesale electric customers, was quite MAPP is an organization of utilities in l active in 1983-particularly during the prepa- eight upper Midwest states which are inter-ration of the cost analysis. connected by high voltage tran> mission lines 1983 Electric System revenues were $327.4 that provide reliability for each system as well i million. Retail electric revenues were $114.3 as permit the interchange of electricity among million, firm wholesale electric revenues were the various independent systems. The District
$148.1 million, unit participation revenues also contributes resources to the Nebraska were $43.3 million, non-firm energy revenues Power Association (NPA) for its activities were $13.8 million, transmission rents and including the Statewide Planning Study re-other such transmission service revenues were quired by state statutes. The District is also a
$7.4 million, and surface irrigation revenues member of the Missouri Basin Systems Group, amounted to approximately $0.5 million. a group of public utilities associated with the I
joint use of the Westem Area Power Adminis-New power and energy forecasts were tration (WAPA) transmission system. made in 1983. Forecasting of future power and energy requirements to supply customer During 1983, the District continued the demands is a very difficult task. Due to major deselopment of a new Customer Infor-changing economic levels, weather extremes, mation System (CIS) to be completed during interest rates, load management, gosernment 1984. This system will more adequately actions such as Payment-In-Kind (PIK), per- maintain customer records and billing infor-sonal income, and the actions of the OPEC mation for the retail customers. When the nations, forecasting can be sery difficult. Not- system is in full operation it will result in im-withstanding these factors, it is necessary that proved customer services and facilitate planning or future generation and transmis- monthly billing to all retail customers. 10
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Projected 1984 RETAIL WHOLESALE COSTS COSTS Construction ' From Revenue
.7 Power Cost - Taxes & . . Debt - '
~ 70.7% / Distribution goryge,
.11.2% 11.4%
19.9% - l ggggy Purch I Construction Power Retail l 1 11
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l For the third consecutive year, the Dis- l trict's firm wholesale and retail customers did not set a new summer peak demand on the l system, despite hot temperatures and dry
~? conditions during August.
3 M, The District's 1983 summer peak firm power demand of 1,691 megawatts was set on l ' August 17 and is approximately two percent , below the comparable peak load demand of ! q 1,720 megawatts set in 1980. Idle production acres attributable to the ( ,, Federal Payment-In. Kind (PIK) Program de-l Gerald centlernan station near Sutherland ser severai ! new generation records during 1983. The two photos creased the irrigation load of our wholesale above record progress on the c onstruc tion of the public power districts and rural cooperatives i
. k*ingsley Ilydro Pro lcct. -even though this was not the case with irrigation customers in our retail division.
1 i 12
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,- 8.4 percent over 1982. The overall plant i performance was improved, accomplishing a 1.1 percent improvement in heat rate. The number of unit trips was decreased by 32 per-cent from 1982. Because the District's Cooper Nuclear Station was out of service during the summer's heavy air conditioning and irriga-tion demand months, Gentleman Station produced approximately 69 percent of the District's total generation for 1983. That generation resulted in Gentleman Station supplying 55.3 percent of the District's total energy requirements during the year.
t, y rT[ We relied heavily on coal to supply our
~ N, power sales requirements during the year.
< - Approximately 62.9 percent of the District's
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- energy supply was from coal-fired resources, C. R. Jones 15.6 percent from nuclear resources,21.2 Assistant General Manager percent from hydro (water) resources includ-FossoI Generation ; , (; ,g Power Administration, and the remaining .3 percent came from a variety of oil and gas-One of the coldest Decembers on record in fired resources.
Nebraska accounted for an all-time winter peak demand on our system. On three con- The Kingsley Hydro Project, a 50 megawatt secutive days from December 19 through 21, hydroelectric facility being built at Lake our combined wholesale and retail customers McConaughy's Kingsley Dam in western set record winter peak demands. The highest Nebraska, was approximately 85 percent winter one-hour demand was set on De_ c mplete by year's end. Construction began cember 21 when customers used 1,288 in 1981. The plant is expected to be in com-megawatts, shattering the old mark of 1,177 nycial peration in the faH of 1984. NPPD w be financing the project, which ,s i being megawatts set in January of 1982 by nine percent. c nstructed by Central Nebraska Public Power and Irrigation District. NPPD will pur-The two 650 MW coal-fired units at Gerald chase the output of the facility. Gentleman Station near Sutherland set several new records during 1983. A new single month Also completed during the year were mod- , generation record was set for the plant during ifications to Lake Ogallala, below the Kingsley December's bitterly cold weather. The Station p werhouse; raising and extending about generated 682,766 megawatt-hours net dur, 8,000 feet of dike; modifications to the Key-ing the month. The Station's previous high stone Dam, canal, and sluice gates; and in-record of 625,312 megawatt-hours net was stallation of gate control equipment. established in July,1983. The plant had a 74.6 We continued to participate, during the I percent capacity factor in December which year, in industry environmental studies on the means the units averaged running at ac- effects that the burning of fossil fuels may have credited capacity nearly three-fourths of the on producing acid rain which is a growing time. The total annual generation increased concern. l l 13 1 l
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'tj M in South Dakota, the Public Utilities Com-
!? ^ f mission (PUC) and a citizens' group opposing the MANDAN Project filed in the South I '4. Dakota Supreme Court an appeal from a
[ L lower court's ruling that the PUC erred in h denying the MANDAN Project permit appli-
-a cation in 1982. NPPD has also appealed to 3 . the South Dakota Supreme Court, challenging some construction conditions set forth by the
( PUC if a permit were granted and which were i affirmed by the lower court. The South Dakota Supreme Court ruling on the matter is W. A. Merrill pending. Assistant General Manager Preliminary survey work began in 1983 T&D Engineoring and Operations in North Dakota, South ~ Dakota and Ne-braska along the MANDAN Project route. The MANDAN Project continued to pro- Some of the work employed space age tech-gress during 1983. nology, utilizing a con,telbtion of satellites The MANDAN Project is a proposed 600 orbiting the earth. By receiving signals from mile, 500,000-volt transmission line which the satellites 11,000 miles in space, measuring will connect summer-peaking utilities, such as the slight delay between signal receptions at NPPD, with winter-peaking utilities serving different locations, and feeding this informa-Manitoba, Canada, North Dakota, and a tion into a computer, surveyors could deter-portion of South Dakota. The line's primary mine the location of survey control points to within one inch in 10-20 miles. One man and hurpose is to allow cooperating utilities to exchange surplus electricity on a sea. a receiver could'do the work of a 20-man team employing conventional surveying tech-sonal basis. n ques. NPPD' estimated the satellite surveying ' The Supreme Courts of North Dakota and saved approximately $80,000 and the work Nebraska handed ddwn decisions in favor of w s compW mud fasta the MANDAN Project in 1983. The North Dakota Supreme Court on Feb- The MANDAN Project is proposed to be the ruary 7 unanimously upheld the decision of District's next major rower supply resource the North Dakota Public Service Commission and is scheduled to be in service in W89. -
~
(PSC) granting a corridor permit for the Project. Contract negotiations continued between the A landowners group had appealed the corridor District, Manitoba Hydro Electrip Boed, the approvat to a D.istrict Court. When that court Canadian utility cooperating in the Project, affirmed the PSC's actions, the group took the and other utilities. case to the North Dakota Supreme Court. The Runoff from unusually heavy mountain PSC, while the corridor appeal was pending, snows in Wyoming and Colorado caused approved a line route for the Project. The flooding in the Platte River Valley during the ., line route approval was not appealed. spring and resulted in an estimated $41,000 in The Nebraska Supreme Court, in a unani- damage to our canal and diversion systems. mous decidon, affirmed on July 29 the order Adequate repairs were made in time for us to of the Nebraska Power Review Board (PRB) supply water to our surface irrigation approving construction of the Project's customers. Nebraska segment. The PRB's approval of the A snow and ice storm in southeastern line was appealed by a landowners group. Nebraska in November damaged more than Early in 1981 the Nebraska Public Service 100 structures on our 345 kV line connecting Commission also approved the Project. Cooper Nuclear Station with Sheldon Station. 14
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- / s shipment of spent nut Ivar fuel u as t oncluc tv<l by banelia NationalIahoratories. New Mexico. < luring i; , "' Y ~
beptember of 1977. l)uring the < rash test, a 74 ton rail , cad n as projec re<linto a (WO ton (onc rete hhx A at a i- ' ~> a spee<l of B1 miles per hour. In the fort u t the same V , $g i
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UA _ J [ (%m<lia NationalIahoratory Photoo phenomenon was not unique to Cooper Station. Several other BWR plants in the Cooper Nuclear Station, the 800 megawatt nation exoerienced the same problem. Cost boiling water reactor (BWR) nuclear power to complete the temporary repairs was ap-plant located on the west bank of the Missouri proximately S7 million. River near Brownville, was out of service in The cracking was discovered during routine 1983 from <\pril 30 to September 4 due to the maintenance work when the plant was shut discovery cf what is commonly referred to as down for annual refueling. intergranular stress corrosion cracking in the T he Nuclear Regulatory Commission (NRC) recirculation system, water cleanup system, is requiring eventual replacement of the pip-and core spray system piping. ing and plans are to take Cooper Station off Approximatelv 40 pipe cracks required the line this year after the summer pe .k i temporary repair with a weld overlay. The demand period-probably about Octobei-16 l l
Cooper Station to the General Electric storage facility near Morris, Illinois. We currently plan
, to begin the series of some 30 rail shipments 4
during 1984. The proposed shipments have attracted nationwide media exposure and have met opposition from certain groups and individuals. A Cooper Station received, during the year, y high marks from an independent evaluation by the Institute of Nuclear Power Operations
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(INPO). The report concluded that the plant
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"is being operated in a safe manner by qual-4 -
ified personnel." The evaluation by INPO-an E independent, nonprofit organization made up L. G. Kunct of utilities that own nuclear plants-was to .- Assi3 tant General Manager make an overall determination of plant safety, Nuclear to evaluate management systems and controls, and to identify areas needing and replace the cracked piping. Preliminary mprovement. estimates place the cost of replacement at approximately $48 million. During the year, the District became a par-t.icipant in two voluntary assistance agree-in addition, a Plant Management Informa- ments relating to nuclear incidents. The agree-tion System will be installed during this out- ments provide for voluntary assistance from age which will replace the present process other nuclear plant operators in the event of computer and perform other necessary a nuclear-related incident. The District could functions. Also, a major turbine overhaul will also be asked to supply personnel and equip-be performed and other major maintenance ment to other utilities in the event of nuclear-and modifications to the plant will be related incidents. performed. Completed during the year was the up-Contractual agreements provide for towa dating of the Cooper Station Safety Analysis Power and Light Company and Lincoln Report to satisfy NRC requirements. Dubbed Electric System to share in these costs in th the "USAR", the report contains about 2,000 same proportion as their respective purchases pages of technical information concerning the from the output of the facility. design and safety features of the plant. In The 1983 prolonged outage resulted in a 1980, the NRC required all utilities to update substantial decrease in generation during the their reports to reflect current plant status. year. Cooper Station generated a total of 3.3 Approximately 250 state, federal, and utility billion kilowatt-hours net during 1983 com-personnel participated in a " nuclear acci-pared to 5.3 billion in 1982. The plant oper- dent" drill during the year. The drill, an ated abou 5,546 hours during the year com- annual requirement of the NRC, tested the pared to 7,414 hours in 1982. Kilowatt-hour Station's early waming system, emergency generation dueng 1982 was a plant record. broadcast system, protective planning for the Plans continued during the year for the pro- public, and the personnel's ability to respond posed transfer of spent nuclear fuel rods from to an emergency. 17 mmmums mmm ium -- mmummum i
3 Genoral Manager Don Se haufcIberger au epts t itation from Pete Hyes of the Nem omen Sat ictr "It is to these public power pioneers, as well as all past and present Board members and employees, that we express our deep-in w rant General Manager a Assistant Treasurer 1
20
' Nebraska Public Power District
- ELECTRIC SYSTEM Report of Independent Public Accountants To the Board of Directors of Nebraska Public Power District:
We have examined the balance sheets of the ELECTRIC SYSTEM of NEBRASKA PUBLIC POWER DISTRICT (a public corporation and political sulxlivision of the State of Nebraska) as of December 31,1983 and 1982, and the related statements of revenues and expenses and accumulated net revenues and changes in financial position for each of the three years in the period ended December 31,1983. We have also examined the supplemental schedules of the calculation of the debt service ratios for each of the three years in the pericxi ended December 31,1983. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion, the financial statements referred to above present fairly the financial position of the Electric System of Nebraska Public Power District as of
- December 31,1983 and 1982, and the results of its operations and changes in its
- financial position for each of the three years in the period ended December 31, 1983, and the supplemental schedules of the calculation of the debt service ratios for each of the three years in the period. ended December 31,1983, present fairly the information set forth therein, all in conformity with generally accepted accounting principles applied on a consistent basis.
Arthur Andersen & Co.
. Omaha, Nebraska, March 2,1984.
I 21
Nebraska Public Power District ELECTRIC SYSTEM Balance Sheets December 31,1983 and 1982 1983 1982 ASSETS Ghamands of DoHan) Utility Plant, at Cost . .. .. . ... . . .... ... .. . . . . . . $608,325 $583,260 Less-Reserve for depreciation and amortization (Note 1) .. . .. 211,464 195,234
$396,861 $388,026 Debt Reserve Account:
Cash..... ....... ...... .. . . . . . .. .. . .. . ..$ 1 $ 4 investment securities . . ... . .. .. .. . .. . . .. . 30,694 30,834
$ 30,695 $ 30,838 Receivables from 5 ale of Property . . . . . ... .. .. ... .. . . . .. ...$ 1,385 $ 2,356 Current Assets:
Cash and investment securities (Note 5) . .. . . .. . ..... . . .$ 93,734 $ 96,282 Receivables, less reserves . ....... . . . .. ... . .. 43,050 40,324 Materials and supplies, at average cost .. . ........ . .. .... 9,895 17,166 Prepayments and other assets .. . .. ....... . . . 270 288
$146,949 $154,060 Deferred Charges (Note 1):
Nuclear fuel . . .. .. ...... ... .. .. . . . .. ... . .. .. . .$ 24,157 $ 29,641 Replacement rotors ...... .. .. ... . .. . ... .. ... 3,993 4,507 Unamortized financing costs ... . .... . . .. . .. . . 2,935 3,147 Other . . ... .. ... .. .... . . . . .. . ... . .. .. .. 3,650 8,157
$ 34,735 $ 45,452
$610,625 $620,732 LIABILITIES AND CAPITAL Accumulated Net Revenues . . . .... .. ... .. . . .. ... . . .$158,910 $141,859 Long-Term Debt (Note 4) . . . . ... . . ... ...... .. .. . . ..... .. . . .$367,932 $376,560 Notes Payable (Note 4):
57% of prime, due 1983 to 1984 . .. ..... . ... . . .... . . 322 2,546 72%% of prime, due 1983 to 1986 . . . . . . . . . . . .... ... .. ..... 18,000 24,000 67% of prime, due 1983 to 1989 . . . . . . . . . . . . . . . .. . ... . 15,172 24,636
$401,426 $427,742 Less-Current maturities . . . . . . . . . . . . .. . ..... .. .. . . 18,012 26,454
$383,414 $401,288
$542,324 $543,147 Current Liabilities:
Current maturities . . . . . . . . . . . . . . . . . . . . . . . . . .. . . . . . . . . . $ 18,012 $ 26,454 Accounts payable . . . . . . . . . . . . . . . . ... . .. . ... ..... . ...... 19,561 20,168 Accrued lease payments . . . . . . . ... ... . . .. .. 11,138 10,079 Accrued interest . . . .. .. . .. . . ... .. 193 608 Other . . . . . . . . . . . .... .... .. . . . .. .. .. ... 16,739 17,379
$ 65,643 $ 74,688 Unamortized Payment Received for Refinancing Costs . .. . ...$ 2,658 $_ 2,897
$610,625 $620,732 The accompanying notes to financial statements are an integral part of these balance sheets.
22
Nebraska Public Power District ELECTRIC SYSTEM Statements of Revenues and Expenses and Accumulated Net Revenues for each of the Three Years in the Period Ended December 31,1983 1981 1982 1981 Revenues and Expenses: ahousands of Dollare Operating Revenues (Note 2) . .5327,382 $313,119 $ 273,886 Operating Expenses: Power purchased-Nuclear Facility and Power Supply System .$179,940 $173,014 $126,738 Other 42,092 36,883 48,858 Production - Fuel 11,386 11,132 19,506 Operation and maintenance . 6,019 5,835 7,064 Other operation 21,121 20,239 19,634 Other maintenance 6,564 6,387 5,776 Leased plant payments (Note 1) . 8,610 8,028 6,696 Depreciation and amortization 19,631 18,217 16,789 Payroll taxes and payments in lieu of taxes . 5,981 5,701 5,004 Total operating expenses . .5301,344 $285,436 $256,065 Net operating revenues . .$ 26,038 $ 27,683 $ 17,821 Interest and Other Revenues: Allowance for funds used during construction .$ 1,878 $ 2,160 $ 2,003 Interest and other . 15,170 18,498 16,745 Total interest and other revenues . .$ 17,048 5 20,658 $ 18,748 Net revenues before other deductions .$ 43,086 5 48,341 $ 36,569 Other Deductions: Bond interest . .5 22,199 $ 22,582 $ 22,878 Other interest 3,281 3,910 4,810 Miscellaneous, net 555 224 i26 Total other deductions . .$ 26,035 $ 26,716 $ 27,814 Net Revenues (Note 2) .5 17.051 $ 21,625 5 8,755 Accumulated Net Revenues: 8eginning balance 141,859 120,234 111,479 Ending balance .
._$ 158J 1_0 $ 14_1,859 $120,234 The accompanying notes to isnancial statements are an integral part of these statements.
23
Nebraska Public Power District ELECTRIC SYSTEM Statements of Changes in Financial Position for each of the Three Years in the Period Ended December 31,1983 1983 1982 1981 tilunnand,of ooHars) Funds Provkfed by Operations: Net revenues . ... .. .. . . .. . . $17,051 $ 21,625 $ 8,755 Add items which require no current outlay of working capital-Depreciation and amortization . . . . . .. . 19,631 18,217 16,789 Amortization of deferred charges tNote 1) . . . . . 6,514 6,514 1,500 Other . . . . .. . . .. .. .. . . . .. 596 - 550' 588 Total funds provided by operations . . . . . $43,792 $46,906 $27,632 Other Sources of Funds: Proceeds from notes payable . . .... . . . . . .. . .
- - 15,000 Contribution from Basin Electric . . . . . . .. . .. . ... . .
12 82 Decrease in fund balances .. .. .. . .. .. 2,692 9,500 16,102 Proceeds from sale of property . . . . 30 1,233 569 Total funds provided . . . . $46,514 .
$ 57,651 $59,385 Funds Apphed:
Utility plant additions ' ...... .. .. . $ 28,490 $36,880 $40,057 Decrease in receivables from sale of property . .... . .. . .. (971) (219) (36) Increase in receivables . . .. . . . . . 2,726 6,262 3,726 Increase (decrease) in mateiials and supplies .. (7,271) 1,888 (5,015) Additions to deferred charges ihr Nuclear Facility (Note 1)- Nuclear fuel . . . . .. . .. .. . . 517 3,797 9,030 Replacement rotors ... . .. . . . .
- - 4,139
' Repayment of notes payable .. . .. . .. . ... . 17,688 14,585 -
Retirements of long-term debt .. . .. .. .. . 8,766 8,221 7,031 (Increase) decrease in accounts payable . . .. . . . 607 (2,384) 5,047 Other working capital changes . . . ... .. . . (21) (16,128) (4,788) Other . . . .. .. . . . . . (4,017) 4,73 194 Total funds applied ... ... . . . $46.514 $ 57,651 ,$59,385 The accompanying notes to financial statements are an integral part of these statements. 24
Nebraska Public Power District ELECTRIC SYSTEM Supplemental Schedules-Calculation of Debt Service Ratios for each of the Three Years in the Period Ended December 31,1983 1981 1982 1981 (Thousands of th>ilaru Operating revenues . .$ 327,382 $313,119 $273,886 Operating expenses, excluding depreciation and amortization of
$20,227,000, $18,767,000, and $17,377,000 281,117 266,669 238,688 5 46,265 $ 46,450 $ 35,198 Interest and other ievenues, excleding interest on construction funds of
$6,424,000, $8,989,000, and $10,378,000. 8,746 9,509 6,367 Net resenues available for debt service .$ 55,011 $ 55,959 $ 41,565 Amounts deposited in the Electric System Debt Service Account-Principal .$ 8,832 $ 7,955 5 6,770 Interest 22,199 22,422 18,952
.$_3h011 $_301 E.7 $_ 25/22 Ratio of net revenues available for debt service to debt service deposits 1.77 1.84 1.62 The act ontpanying notes to hnancial staternents are an integral part of these statements.
25
C. Allowance for fund, U~ed During Construction-This allowance, representing the cost of funds used to finance construction, is capitalized as a component of the cost of utility plant and is (redited to Interest and Other Revenues. The capitalization rates for construction financed with resenue bonds are based on the interest cost of each issue less interest income. The rve for construction financed by resenues is based on a projected rate of borrowing. For the periods pre-sented herein, the rates vary from 6.19 to 9.6259. D. Deferred Charges-Deferred charges include amounts paid to the Nuclear Facility for wmking capital for nuclear fuel and replacement rotors. The carr3ing costs of the nuclear fuel advances are also included. The deferred charges are being amortized on a monthly Nebraska Public Power District basis to Power purchased - Nuclear Facdity as follows: ELECTRIC SYSTEM raaais Deu ription Amortintion Commenring Fuel costs of 510,000,000 . $6,000,000 October,1981 Fuel costs of 511,100,000 .52,220,000 April,1984 Notes to Financial Statements Replac ement rotor costs of $1,032,000 . . $ 516,000 January,1982 (1)
SUMMARY
OF SIGNIFICANT ACCOUNTING PmlCIES: Replacement rotor A. Organization - lanuary,1984 costs f 54,068.000 . . $ 1,0 32,000 The District has three separate divisions for accounting puques as follows: E. Unamortized financing Costs-Electric System These costs represent issuance expenses on all bonds and Nuclear Facility the prernium to retire the Electric System Revenue Bonds,1973 Power Supply Sy stem series, prior to their maturity date and are being amortized As required by Bond Resolutions, separate records are over the life of the reyntise bonds using the bonds outstand-maintained for each division. The Electric System financial ing method. statements culude the Nuclear Facility and Power Supply F. Unamortized Pas ment Receiux! for Refinancing Costs-System. for whi(h financial statements are presented separaiely This reimbursement from the Nuclear Facility was for berein. The Ele ( tric S3 stem financial statements should be read certain refinancing costs of the Elettric Ssstem in' curred in in (onjun(tion with such other financial statements. 1968 and is being amortized over the life of'the 1%8 Resenue B. Depreciation, Amortization and Maintenance- Bond issue using the bonds outstanding method. The Distric t records depreciation os er the estimated useful G tw ament Semrities-life of the property. Depreciation on Utility Plant in Service Ins estments are made in U.S. Govemment securities, Fed-was approximately 3.07 in each of the 3 ears 1983,1982, eral Agency obligations, and bank (ertificates of deposit. The d"d 198I- Debt Reserse Account in the Debt Senice Fund is valued The District has signed !ong-term lease agreements with semi-annually at January I and July I at the lower of cost or approximately 215 municipalities. These lease agreements ob- market in accordance with requirements of the Electric System ligate the District to pay fer normal property additions during Revenue Bond Resolution (Electric Resolution). The securities the term of the lease. The District has recorded prosisions for in the remaining funds are valued at the lower of cost or prin-amortization of $3,861,000 in 1983,53,712,000 in 1982, and cipal amount in accordance with requirements of the Electric 53,796,000 in 1981. leased plant additions, w hich are ful y Resolution. resened, totaled $32,831,000 at December 31,1981, and Deferred Production Costs-
$29,528,000 at Det ember 31,1982. .
Actual energy (fuel) costs in euess of those m.cluded m. S.n of the municipal lease agreements include an obhga- the ba,ic rares are recovered b3 a Production Cost Adjustment tioa requiring the Distri(t to make property additions associ- PCA) whic. is billed to all customers cuept non-firm and ated with the electric service being provided to such i on enm n' hen b M e do not pide municipalities in an amount equal to a percentage of resenues sufficient resenues to re(oser the energy costs, the ewess cost of the reyr(tise leased systems. The District has completed negotiations with four of the municipalities which resulted in, iWed Whm h bM mwovide resenues in euess of Me energy costs, the euess is cu luded from revenues. Present among other things, the m<xhfication of the obligation to make Die Nio gires that billings for the PCA be made using su(h improsements. The Distric t will pay these municipalities tes adjusted from time to time so that the variations in at tual approumately $3.4 million during the years 1984 through new mMom energy res enues to be derimi from the basic 198,. Negotiations are (ontinuing uith the two other ed by PCA billings either in the current rate Tt ist c t (harges maintenance and repairs, including mmxi or futum ram lx%xk the (ost of renewals and replac ements of minor items of prop- 1. Resenue Recognstion-ert), to maintenant e expense acc ounts. Renewals and re- In accordance with industry pra(tice, the Distric t re(og-pla(ements of property teulusise of minor items of property, nizes revenues for retail service in the month the meters are as set forth abme) are ( harged to utihts plant auounts. Upon read. Since retail meters are read on a cscle basis, substantial retirement of property subject to depreciation, the (ost of resenues applicable to senit e rendered between the last bill-property is remomi imm the plant auounts and c harged to ing and the end of the year are not recorded. Substantially al! the resene for depreciation, along with the removal costs, net wholesale revenues are recorded in the period in which ser-of sahage. sic e is rendered. 26
(2) RATES: . Maturities of Electric System Long-Term Debt and Notes The District designs its wholesale and retail electric ser- Payable for the next five years are: 1984 - $18,012,000; 1985 vice rates to cover cost of service, including; 1) operating ex- - $18,398,000; 1986 - $18,843,000; 1987 - $13,450,000; penses other than depreciation, 2) debt service, and 3) certain 1988 - $ 12,810,000. capital additions. All costs are recovered from customers in the current rate period or in future rate periods by increasing or (5) CASH AND INVESTMENT SECURITIES: reducing revenue requirements in such future rate periods. The _ onemtwr 31, following table illustrates the effect of these adjustments in 1983 _ 1982 revenue requirements on the Statements of Revenues and ahousandsof oottari) Enpenses. Revenue Fund . $10,923 $ 16,594 Adiustments in Revenue Requirements Operating Fund . . . 12,837 11,525 Race Period Construction Funds . 49,269 59,192 19 4 1977 1978 1979 1980 1981 1982 1983 Debt Service Account . ... . 338 - nstimated) Reserve and Contingency Fund . . 1,236 1,236 Surplus or (Deficit)in MNionsof poHars) General Reserve Fund : 19,131 7,735 Rate Period .. . $(2.1) $9.4 $(10.7) $(6.9) $ 93,734 $ 96,282 Adjustment in Subsequent Funds consist of $81,878,000 of investment securities and Rate Periods: $11,856,000 of cash at December 31,1983, and $79,257,000 1978-1979 .. 0.6 - - - of investment securities and $17,025,000 of cash at Decem-1980-1981 ..... 0.6 (9.4) - - ber 31,1982. 1982-1983 . . 0.9 - 10.7 - (6) LONG-TERM OBUGATIONS: 1984-1985 The District has an agreement for the purchase of the
- (Projected) . . .
3.3 entire output of a 100 MW steam electric generating plant 1986-1987 through 1991. Under the agreement, the District must (with (Projected) . 3.6 limited exceptions) make minimum payments monthly. The As provided in the Electric Resolution, the District cov- aggregate amount of such required payments at December 31, enants to charge rates for electric and other services so that 1983, is as follows: revenues will be sufficient to pay annual operating expenses, 1984 . . . $ 968,000 including Nuclear Facility and Power Supply System charges, 1985 968,000 debt service and other charges payable out of Electric System 1986 . 968,000 revenues. 1987 .. . . 968,000 New rates for firm wholesale and retail service, including 1988 . 968,000 the PCA rate, which were placed in effect in 1984, are ex- 1989-1991 . . 2,904,000 pected to increase revenues by approximately $10.1 million Total .. . . $7,744,000 for the ) ear. The minimum payments will be reduced in the later years f the agreement by payments made from reserve funds of the Te i tr c has a retirement income plan covering sub-stantially all of its full-time employees. Employee's contribu. wner. In addition, the District is requeed to pay the variable tions to the plan are based on salary, and the District's con- perating expenses of the plant. The District's total payments tributions are allocated to employee's trust accounts based under the agreement were $2,586,000 in 1983, $2,421,000 in 1982, and $5,041,000 in 1981. partially on the employee's contributions and partially on years of service and annual salary. The plan provides for retirement The District has entered into an agreement to purchase all income equal to the total of the employee's trust account, the output of a 50 MW hydroelectnc generating facility. The including trust earnings. The District's contribution was District is obligated to pay all costs of operating and maintain- $3,663,000 for 1983, $3,453,000 for 1982, and $3,166,000 ing the plant plus a management fee. The plant is currently for 1981* under construction by another utility and is estimated to cost approximately $49.7 million excluding interest during con. (4) LONG-TERM DEBT AND NOTES PAYABLE: struction and financing costs. Short-term indebtedness in the Deumber 31, amount of $75 million has been issued in connection with the Revenue Bonds: 1983 1982 hydroelectric generating facility. The District expects to issue Serial Bonds- phousandsof pouars) approximately $65 million Power Supply System Revenue 2.00%, due 1983 to 1990 . .$ 3,945 $ 4,960 Bonds in 1984 to refund the short-term indebtedness. 4.604-6.00%, due 1983 to 1985 . 16,505 23,985 (7) CONSTRUCTION AND FINANCING: 4.75% 6.30%, due 1986 to 1990 44,465 44,465 The 1984 construction plan for the Electric System in-4.90%-6.40%, due 1991 to 1995 34,010 34,010 cludes authorization for estimated expenditures of $25.9 mil-5.00%-6.10%, due 1996 to 2000 . 39,850 39,850 lion for 1984 and subsequent years. These expenditures will 5.00%-6.30%, due 2001 to 2005 . 49,740 49,740 not require the issuance of long-term debt in 1984. 5.75%-6.40%, due 2006 to 2009 . 27,820 27,820 The District is currently in the process of issuing up to Term Bonds, with annual sinking
$100,000,000 of Tax Exempt Commercial Paper Notes, Series fund requirements-A. The Notes are being issued (1) to finance a portion of the 5.10%, due 1987 to 2002 41,000 41,000 District's costs in developing the MANDAN Project, (2) to fi-6.60%, due 1993 to 2003 33,200 33,200 nance a portion of the costs relating to a plant management 6.75%, due 1991 to 1995 . . . 17,100 17,100 information system and repairs and replacement of piping at 7.004, due 1996 to 2005 . . . . 57,250 57,250 the District's Cooper Nuclear Station, and (3) for other lawful Lease Purchase Payables-2.00%, due 1983 to 2005 . . . . . . . 4,992 5,263 Unamortized Bond Discount . (1,945) (2,083)
$367,932 $ 376,560 27
r-Supplementary Information To Disclose The Effects Of Changing Prices (Unaudited) W The following supplementary information is supplied in accordance with the requirements of the Financial Accounting Standards Board (FASB) Statement No. 33,
" Financial Reporting and Changing Prices", for the purpose of providing certain information about the effects of changing prices. It should be viewed as an estimate of the approximate effect of inflation, rather than as a prcrise measure.
Constant dollar amounts represent historical costs stated in terms of dollars of equal purchasing power, as measured by the Consumer Price Index for All Urban Consumers (CPbU). Current cost amounts reflect the changes in specific prices of plant from the date the plant was acquired to the present, and differ from constant dollar amounts to the extent that specific prices have increased more or less rapidly than prices in general. The current cost of property, plant, and equipment represents the estimated cost of replacing existing plant assets and was determined by indexing the surviving plant by the Handy-Whitman Index of Public Utility Construction Costs. The iurrent year's provision for depreciation on the constant dollar and current (ost amounts of property, plant, and equipment was determined by applying the District's depreciation rates to the indexed plant amounts. Fuel inventories and the cost of fuel used in production have not been restated from their historical cost in nominal dollars. Wholesale power contracts limit the recovery of fuel costs through the operation of adjustment clauses or adjustments in basic rate schedules to actual costs. For this reason, fuel inventories are effectively monetary assets. Charges to the District's customers are based on historical cost. Consequently, the excess of the cost of plant stated in terms of constant dollars or current cost over the historical cost of plant is reflected as a reduction to net recos erable ( ost. To properly reflect the economics of historical cost rate methodology in the Statement of Resenues and bpenses, the reduction of net property, plant, and equipment should be offset by the gain from the decline in purchasing power of net amounts owed. During a period of inflation, holders of monetary assets suffer a loss of general purt hasing power while holders of monetary liabilities experience a gain. The gain from the decline in purchasing power of net amounts owed is primarily attributable to the substantial amount of debt whi(h has been used to finan(e property, plant, and equipment. Since the District is hmited to the recovery of historical costs, the District does not reali/c a holding gain on debt. The benefit of any holding gain on debt accrues to the customers. 28
Nebraska Public Power District ELECTRIC SYSTEM Statement of Revenues and Expenses Adjusted for con,eni;ona ClToll,',"' C '"iU "' Changing Prices for the Year Ended December 31,1983 Hi}'a'il'I
, ,,^ j';'g,, ,,^j'6'g,,
(husands of Dollars) Operating Revenues. . .. . . . . 5327,382 $327,382 $327,382 Power Purchased . .. . . . . . . .,. .5222,032 $222,032 $222,032 Fuel Used in Production ... . ....... . . . 11,386 11,386 11,386 Arnortization of Lease Operated Plant . . . . . . . . 3,863 3,863 3,863 Depreciation Expense . . .. .. .. . 15,768 28,977 29,743
' Other Operating and Maintenance Expense . .. . . . 48,295 48,295 48,295 Other Deductions . . . . . . 26,035 26,035 26,035 interest and Other Revenues . .. .. . . . . . . (17,048) (17,048) (17,048)
$310,331 $323,540 $324,306 Net Revenues from Continuing Operations (Excluding Reduction to Net Recoverable Cost) . . .$ 17,051 $ 3,842* $ 3,076
- increase in Specific Prices (Current Cost) of Property, I Plant, and Equipment Held During the Year" . $ 23,009 Reduction to Net Recoverable Cost .. . . . . . . . $ 40 271 Effect of increase in General Price Level . . (22,473) t
[ Excess of increase in Specific Prices After Reduction to Net i Recoverable Cost Over increase in General Price Level . . $ 807 ( Gain from Decline in Purchasing Power of Net Amounts Owed . . . . . 9,050 _ 9,050 I Net . . . . . . . . . .. . $ 9,090 $ 9,857 j
- Including the reduction to net recoverable cost, the net revenues from continuing operations on a constant dollar basis would have been $3,883 for 1983.
"At December 31,1983, current cost of property, olant, and equipment, excluding construction work in progress, net of accumulated depreciation, was $658,544, while historical cost or net cost ,
recoverable through depreciation was $377,288. Five-Y!ar Comparison of Selected Supplementary Financial Data Adjusted for Effects of Changing Prices icar inded December 31, 1981 1982 1981 1980 1979 dn busands of Average 1983 Dollars) Operating Resenues . . .5327,382 $323,191 $ 300,027 $292,248 $308,367 Historical Cost information Adjusted for General inflation: Net Revenues thpenws) from Continuing Operations (bcluding Reduction to Net Recoverable Cost) . .5 3,842 $ 10,796 $ 692 $ (19,557) $ 8,010 Net Assets at Year-end at Net Recoverable Cost .5156,240 $144,769 $128,343 $128,733 $157,877 l Current Cost Information: Net Resenues (hpenses) from Continuing Operations (bcluding Reduction to Net Recoverable Cost) . . . . . .$ 3,076 $ 9,177 $ (488) $ (21.135) $ 6.202 h(ess of increase in General Price level Over increase in Specific Prices Atte. Reduction to Net Recoverable Cost . . . . . .$ (807) $ (981) $ 13.669 $ 20,644 $ 23,744 Net Assets at Year-end at Net Recoverable Cost .$ 156,240 $ 144,769 $128,343 $128,7 35 $ 157,877 General Information: Gain from Decline in Purc hasing Power of Net Amounts Owed . . . .$ 9,050 $ 9,874 $ 23,008 $ 30,807 $ 32,973 Average Consumer Pric e Index . 298.4 289.1 272.4 246.8 217.4 29
t Nebraska Public Power District POWER SUPPLY SYSTEM Report of Independent Public Accountants To the Board of Directors of Nebraska Public Power Distric.t: We have examined the special-purpose statements of assets and liabilities of the POWI.R SUPPLY SYSTEM of NEBRASKA PUBLIC POWER DISTRICT (a public (orporation and political sulxlivision of the State of Nebraska) as of December 11, 19fil and 19fi2, and the related special-purpose statements of revenues and costs for eac h of the three years in the period ended December 31,19fil. Our examinations were made in accordance with generally ac cepted auditing standards and, accordingly, included such tests of the accounting records and suc h other auditing procedures as we considered nec essary in the circumstances. The act ompanying special-purpose financial statements have been prepared for the purpose of complying with, and on the basis of, ac counting requirements specified in the Power Supply System Revenue Bond Resolution adopted by the District on September 29,1972, as supplemented, securing the revenue bonds issued thereunder. As desc ribed in Note 1(B), these requirements differ from generally accepted accounting principles. Accordingly, the financial statements are not intended to present and, in our opinion, do not present the financial position and results of operations of the Power Supply System of Nebraska Public Power District in conformity with generally accepted ac counting principles. In our opinion, howeser, the special-purpose financial statements of the Power Supply System of Nebraska Public Power Distric t referred to above are presented fairly pursuant to the requirements of the Power Supply System Revenue Bond Resolution desc ribed in Note 1(B), applied on a (onsistent basis. - Arthur Andersen A Co. Omaha, Nebraska, Mar ( h 2,19fl4. 30
r
-Nebraska Public Power District POWER SUPPLY SYSTEM Statements of Assets and Liabilities December 31,1983 and 1982 Prepared Pursuant to Requirements of the g Power Supply System Revenue Bond Resolution 1983 1982 ASSETS Ohommfs of DoHus)
Utility Plant in Service (Note 2) . . . .. .. .. .$688,233 $691,761 Less-Reserve for depreciation (Note 1) ... . 31,124 20,780 Amounts funded from revenue (Note 1) . . . 1,173 380
$655,936 $670,601 Construction Work in Progress (Note 2) . .... . . .$ 43,064 $ 31,359 Less-Amounts funded from revenue (Note 1) . . . . 1,932 1,288
$ 41,132 $ 30,071
-Special Funds:
Debt reserve account ... . .. . . .. . . .$ 56,234 5 57,247 Reserve and contingency fund . . . . .. . . . ... 11,081 8,122 Construction fund . . . . . . . . . .. .. . . 69,767 66,556 Development funds .. ...... . .... .. .. .. . . ... . 9,358 15,776 Revenue fund . .. . . .. . .. ... .. .. . 845 Operating fund . . . . . . .. . .. . . .. . 14,299 12,934 General reserve fund . . . ....... . . .. . . .. 28,605 32,166
$189,344 $193,646 Accounts Receivable . . . . .. . . .. .. . . . .$ 559 $ 554 Interest Receivable . . .. .. . . . . .. ... . ..$ 4,414 $ 3,611 Fuel Inventory, at average cost .. . .... ... . .. . . . .5 13,167 $ 17,092 Prepayments and Other Assets . . . . . . . . . . . .. . . . . . . .. . .$ 880 $ 898
$905,432 $916,473 LIABILITIES Revenue Bonds:
Serial Bonds-4.55%-5.60%, due 1983 to 1985 .. .. . .. . 5 22,255 $ 32,595 4.90%-6.00%, due 1986 to 1990 . . . .. 66,780 66,780 5.50%-6.40%, due 1991 to 1995 .. . ... .... . . . 87,775 87,775 5.704-6.60%, due 1996 to 2001. . . . .... . .. 74,050 74,050 Term Bonds, with annual sinking fund requirements-5.80%, due 1998 to 2012 . . .. .. .. . . ... . 168,930 168,930 6.13%, due 1999 to 2016 . .. . .. . .. . . . . 239,635 239,635 6.75%, due 1999 to 2001. . . . . . . .. 23,025 23,025 6.90%, due 2002 to 2008 . . . . . . ... .. . 75,345 75,345 7.10%, due 2009 to 2016 . . . ... .. . ... . 129,005 129,005
$886,800 $897,140 Accounts Payable and Other Accrued Liabilities . . . . 5,759 10,576 Operating Reserves (Note 1)-
Renewals and Replacements - .. .. ... . . . .. . . 10,896 6,899 Coal Car Maintenance . . . ....... ... . ... . .. . 1,977 1,858
$905,432 $916,473 The accompanying notes to finantial statements are an integral part of these statements.
31
Nebraska Public Power District POWER SUPPLY SYSTEM Statements of Revenues and Costs for each of the Three Years in the Period Ended December 31,1983 Prepared Pursuant to Requirements of the Power Supply System Revenue Bond Resolution 1981 1982 1988 (thousaruh of Dollars) , Revenues (Notes 1 and 4): Sales to the Electric System .. ... . ..... .$121,085 $ 11,3,676 $ 72,825 Investment and other income . . . ... . .. 19,445 14,866 4,555 Total revenues . . . . . . . . .. .. . . . $ 140,530 $ 128,542 $ 77,380 Costs: Operating expenses-Production-Fuel . ... . .. .... . . ... .$ 54,298 $ 47,795 $ 28,338 Operation and maintenance . ..... .. . .... . 15,298 14,990 8,207-Insurance . . . . . . . . . . . . . .. ... . 757 851 873 Provisions for operating reserves (Note 1) . .. ... . .. .. 4,399 2,374 1,712 General and administrative . . . . .. . ... .... .. .. 2,819 2,597 1,547
$ 77,571 5 68,607 $ 40,677 Debt service (Note 1)-
Principal . . . . . . . . . . . . . .. . . . .. . .. . 10,340 5,660 5,405 Interest .. . .. .. .. . . . .. . . 52,619 54,275 31,298 Total costs . . . . .. . .. .
. .$140,530 $128,542 $ 77,380 The accompanying notes to financial statements are an integral part of these statements.
32
Nebraska PubliC Power District D@eciat rund-Special funds consist of $188,862,000 of investment se-POWER SUPPLY SYSTEM curities and $481000 of cash as of December II,1981, and
$192.481,000 of insestment sec urities and $1,165,000 of cash Notes to Financial Statements at Dmndu 31,1982.
Investments are made in U.S. Government sec urities, Fed-(1)
SUMMARY
OF SIGNIFICANT ACCOUNTING POUCIES: eral Agency obligations, and bank (ertificates of deposit. The A. Organization- Debt Reserve Account in the Debt Service Fund and the Re-The District has three separate divisions for accounting serve Account in the Reserse and Contingency Fund are val-purposes as follows: ued semi-annually at January 1 and July 1 at the lower of(ost Electric System or market in accordance with requirem'ents of the Power Sup-Nuclear Facility piv Resolution. Gains or losses on valuations are included in Power Supply System insestment income. The securities in the remaining funds are As required by Bond Resolutions, separate records are valued at the low er of (ost or principal amount in ac cordanc e maintained for each division. The Power Supply System finan- with requirements of the Power Supply Resolution. cial statements exclude the Electric System and Nuclear Facil-ity, for which financial statements are presented separately (2) CONSTRUCTION AND FINANCING: herein. The Power Supply System financial statements should . The 1984 construction plan for the Power Suppiv System he read in conjunction with such other financial statements. includes authorization for estimated expenditures of $16.7 million for 1984 and subsequent y ears. T hese expenditures will B. Basis of Accounting- not require the issuante of long-term debt in 1984. However, Resenues are recognized and billed at an amount equal to the District does expect to issue appnnimately $65 million costs as defined by the Power Supply System Revenue Bond Power Supply System Bords in 1984 to refund the short-term Resolution (Power Supply Resolution) w hich include operating indebtedness issued by another utility to financ e the King-expenses (culuding depreciation), and debt service on the sley Project. revenue bonds, less investment income. Revenues are com- Work has (ontinued on the MAND AN Projett whi(h is a puted and billed so that no equity is accumulated in the Power high voltage transmission line planned for, among other things, Supply System. the seasonal eu hange of power and associated energy. Meet-Costs as defined by the Power Supply Remlution differ in ings with The Manitoba Hydro-Uectric Board of Winnipeg, the following respects from generally accepted account- Manitoba, Canada are being held to deselop a seasonal ex-ing principles: change agreement. The Project is expected to be in (ommer. (1) Amortization of the debt principal is included as a cial peration in 1989. Apphcations for state and federal cost in the accompansing Statements of Revenues and perniits are in progress. The Distric t plans to pay a portion of its Costs as " Debt servic e-Principal". costs in developing the Project from the issuance of Electric Depreciation is not recorded as a cost. Had the Dis- System Tax hempt Commercial Paper Notes, tritt provided straight-line depreciation over a 404 ear life (3) UTIGATION: rather than including amortization of debt principal oser in 1980, the District filed suit to re(over amounts totaling the same period, costs would have increased $6,900,000 in excess of $50 million from National Industrial Constructors, for 1981, $8,100,000 for 1982, and $4,900,000 for 1981. Inc. (NIC), Austin Industries, Inc., and f Meral Insurance Com-Accumulated depreciation through Decemler 31,1983, pany. T he suit alleges damages from delays, c ost os erruns, and would have increased costs approximately $ 30,200,000. for other damages and expenses asso(iated with the c onstruc-The reserve for depreciation shown on the Statements of tion of Gerald Gentleman Station Unit No.1. The general (on-Assets and Liabilities was prosided by nxording amounts tra(tor, NIC, counter-claimed against the District to recoser equal to repayment of debt- amounts totaling in euess of $12 million as a result, among (2) Billings to provide capital for renewals and re. other things, of the alleged failure of the Distri( to effectively placements of property and capital additions are in(luded (oordinate and administer the constru(tion of Unit No.1. Prior in the ac company ing Statements of Revenues and Costs as to (ommenc ement of the trial, NIC amended its damage claim
" Provisions for operating reserves". Under generally ac. to $55 million. Trial of this matter commenced on January 4, cepted accounting principles, capital additions and 1984, and is proceeding.
provisions for renewals and replacements are not ex. The suit filed by NIC against the Distric t in District Court penses but (eulusive of minor items of property) are of Lancaster County, Nebraska, has been stayed, pending the charged to utility plant. out(ome of the suit des ( ribed in the preceding paragraph. (3) Interest income on constru(tion fund investments (4) RATE COVENANT: for Gerald Gentleman Station Unit No. I and Unit No. 2 is The Distri(t is requin d under the Power Supply Resolu-capitalized ahhough commercial operation began in tion to charge rates for elex tric power and energy from the April,1979 and lanuary,1982, respet tis ely. Suc h inc ome Power Supply 5) stem so that resenues will be at least suffic ient would be included in income of the period under gen- to pay operating expenses, aggregate debt service on the erally au epted a( counting principles. Power Supply System Revenue Bonds, amounts to be paid into (41 Charges for Power Supply System servi (es are the Debt Reserse A(count and Reserse and Contingenc y fund, based on (ost and facilities are finanuJd with debt sec uri- and all other liens payable out of resenues of the Power Supply ties. Therefore, there are no significant unrecorded (osts System. The debt service pasments are appnnimately $63.6 of inflation in the financial statements. n on m year ough E and a tow of appnNmaMy,
$115.3 million for the period 2011 through 2016. Maturities of C. Urdity I'lant- Power Supply System Resenue Bonds as a component of such Interest expense, less interest camed on ins estment sec u- debt service payments for the next five 3 ears are: 1984 -
rities, all financing ( osts and all other (osts related to (onstruc, $10,830 000; 1983 - $11,403,000; 1986 - $11,9%O00; tion proje(ts are (apitali/ed, 1987 - $12,613,000; 1988 -- 513,110,000. 33
Nebraska Public Power District NUCLEAR FACILITY Report of Independent Public Accountants To the Board of Directors of Nebraska Public Power District: We have examined the special purpose statements of assets and liabilities of the NUCLEAR FACillIY of NEBRASKA PUBLIC POWER DISTRICT (a public corporation and political subdivision of the State of Nebraska) as of December 31, 1983 and 1982, and the related special-purpose statements of revenues and costs for ea(h of the three 3 ears in the period ended December 31,1983. Our examinations were made in anordance with generally accepted auditing standards and, accordingly, included suc h tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. The accompanying special-purpose financial statements have been prepared for the purpose of complying with, and on the basis of, accounting requirements pecified in the Nuclear facility Revenue Bond Resolution adopted by the District on August 22,1968, as supplemented, securing the revenue bonds issued thereunder. As described in Note 1(B), these requirements differ from generally accepted a(counting principles. Accordingly, the financial statements are not intended to present and, in our opinion, do not present the financial position and results of operations of the Nuclear Facility of Nebraska Public Power District in (onformity with generally accepted accounting principles. In our opinion, however, the special-purpose financial statements of the Nuclear facility of Nebraska Public Power District referred to above are presented fairly pursuant to the requirements of the Nuclear facility Revenue Bond Resolution described in Note 1(B), applied on a consistent basis. Arthur Andersen & Co. Omaha, Nebraska, March 2,1984. 34 l.
-Nebraska Public Power District NUCLEAR FACILITY Statements of Assets and Liabilities - December 31,1983 and 1982 Prepared Pursuant to Requirements of the Nuclear Facility Revenue Bond Resolution ASSETS 1983 1982 (Thouunds of Dollas)
Utility Plant in Service .. . . .. .... .... . . .. . . . . .$392,583 $392,029 Less-Reserve for depreciation (Note 1) .. .. . .. . 74,397 64,581 Amounts funded from revenue (Note 1) . ... .... .. 8,974 7,671
$309,212 5319,777 Construction Work in Progress . .. .. . .. .. .. . . . .$ 60,055 $ 52,895 Less-Amounts funded from revenue (Note 1) . . .. . . .. . . 33,278 27,329
$ 26,777 $ 25,566 Nuclear Fuel-Net of Amortization (Note 1). . . .5109,346 $ 110,454 Spcial Funds:
Debt reserve account .. . .... ... .. . . .$ 28,342 5 26,250
' Reserve and contingency fund . . . .. . .. .. .... 8,728 6,248 Additions and improvements . ..... . .. ... ..... .. .. .. 2,216 2,831 Constru'ction fund . . . . . .. .. . . . .. . 10,675 8,255 Bond anticipation notes . . ... . .... ... ..... . .
- 5,001 Fuel reserve account . ... ... ... . .. . . .. . 11,366 8,175 Fuel disposal fund (Note 2) . . . . . .. .. . . 33,651 20,263 Operating fund . . . . . . . .... . . . . ..... . 882 1,980 Revenue fund . . . . . . . .. . .. . ...... .. . .. . . 121 793 General reserve fund . . . . . .. ..... ... . . . ... . .. . .
589
$ 95,981 $ 80,385 Accounts Receivable (Note 2) . . ... ... . .. . . . ... . .$ 11,071 $ 10,532 Interest Receivable (Note 2) . . . .. . .. . ... . .. . . . .. . . .$ 3,039 $ 1,732 Deferred Charges and Other Assets (Note 2) . . . .. .. .... .... ... . . . .$ 7,064 $ '6,483
$562,490 $564,929 LIABILITIES Revenue Bonds:
Serial Bonds-4.709 -7.20%, due 1983 to 1985 . . . . . .... . .. . . . . . . .. .$ 23,760 $ 33,325 4.80% 7.50%, due 1986 to 1990 . , . . . . . . . . . . . . . . .. .. . 49,090 45,685 6.009 8.80%, due 1991 to 1995 . . .............. .. . 24,020 18,780
- 7.38%-9.20%, due 1996 to 2003 . . . . . . . . . . . . . . . . .. 26,600 11,745 Term Bonds, with annual sinking fund requirements-5.10%, due 1987 to 2002 . . . . . . . . . . . . . . . . . . . . .. ......... .... 155,000 155,000 6.30%, due 1993 to 2003 ....... .. . ... . . .... .. .. . 68,430 68,430 6.60%, due 1992 to 2003 .... . . ... .... . .. . .. . . .... 67,200 67,200
$414,100 $400,165
- Bond Anticipation Notes of 1981,109, due April 1,1983 ... ... . . .
- 22,800 Operating Reserves (Note 1) . . .. ..... ...... .... ... .. .. .... . 104,435 102,967 Nuc. lear Fuel Disposal Costs (Note 2) . . . . . . . .. . .. ......... ... ... 41,243 35,964
, Accounts Payable and Other Accrued Liabilities . .. .. . ... . .. 2,712 3,033
$562,490 $ 129 The accompanying notes to financial statements are an integral part of thtse statements.
35
Nebraska Public Power District NUCLEAR FACILITY Statements of Revenues and Costs for each of the Three Years in the Period Ended December 31,1983 Prepared Pursuant to Requirements of the Nuclear Facility Revenue Hond Resolution 1981 1982 1981 tilmaruh of Dollar 9 Revenues (Notes 1 and 3. ):
- Sak's-Ekctric System . . . .
.$ 52,348 $ 53,563 $ 55,033 lowa Power and Light Company . . 52,351 53,549 55,042 Investment income .
10,187 7,907 5,683 Total revenues . . $ 1 14,886 $115,019 $1 I 5,758 Costs: Operating expenses-Production-fuel .. .. . .. .$ 28,740 $ 38,957 $ 20,556 Operation and maintenance . . . . 28,756 21,330 18,054 Insurance .. . .. 3,788 3,656 3,167 Provisions for operating reserves (Note 1) 13,489 13,319 36,190 Technical and administrative . . .. . . . 4,925 4,147 4,173
$ 79,698 $ 81,409 $ 82,140 Debt service (Note 1)-
Principal . ... . .. . . 10,565 10,060 9,595 Interest . . . ... . . 24,623 23,550 24,023 Total costs . ... .. . . . $ 1 14,886 $ 115,019 $115,758 1he accompanying notes to financial statements are an integral part of these staternents. Nebraska Public Power District Depreciation is not recordal as a cost. Had the Dis-NUCLEAR FACILITY tric t provided straight-line depreciation oser a 10-year life Notes to Financial Statements rather than including amortization of debt princiial l over the same period, costs would base inueased $2,500,000 (1)
SUMMARY
OF $1GNIfICANT ACCOUNilNG lOLICIES:
- U,000,000 for M82, and $ ),200,000 for M8L I"'
A, Organization - ^CC"'""Id'"d depreciation through December 31,1981, The District has thne separate divisions for accounting would base in(reased costs approsimately $42,400,000. purposes as follown The reserse for depreciation shown on the Statements of Ein tric Systeni Assets and Liabilities was prosided by recording amounts Nuclear Facility niual to mpaynwnt of &bt. Power Supply System As required by llond Resolutions, separate records are (2) Billings to provide capital for renewals and re-maintained for each division. The Nuclear facility financial placements of property, capital additions, and nuclear fuel statements eulude the Elettric System and Power Supply Sys- are included in the accompanying Statements of Revenues tem, for which financial statements are presental separately and Costs as " Provisions for operating reserves". Under hacin. The Nuclear facility finan(lal statements should be generally accepted auounting principles, capital read in (unjun(tion with suc h other financial statements. additions and prosisions for renewals and replac ements
'#""'M *"*' " "S "* "S B. Haris of Acc ounting- am ( hargni to u@ty plant Wom. '."i""!ons ng capitalim w Res enues are rn ognized and billnl at an amount njual to Im nu ear fuel am not qwnws umln gennaHy aco ptal costs as defined by the Nuclear f acihty Resenue Bond Resolu- au ountum pomv s unM de fuel n usal tion (Nutlear Resolution) whi(h in(lude operating evpenses (ewluding depraiation), and debt sersi(e on the resenue O) lnterest inc ome on construction fund investments Innds, less investment income Resenues are computal and is capitalital although (ommercial oiwration began in billnl so that no niuity is an umulatal in the Nut lear Iacihtv. July, M74. Su(h in(ome would be includal in inc ome of Costs as defined by the Nuclear Resolution difier in the the period under generally auepted auounting following respects from generally auepted accounting princ ipfes.
prin(iples: W Charges for Nuc lear f at ility services are basal on (1) Amortization of the debt principal is int ludal .a a (ost and fa(ilities are finan(ed with debt securities. rost in the accompanying $tatements of Resenues and Therefore, there are no signific ant unrecorded (osts of Costs as " Debt +tsice-Prin(ipal~' inflation in the financial statements. 36
C. Nuclear fuel- Reserve Account and Reserse and Contingency Fumi, and all Nuclear fuel in the reactor is being amortized on the basis other charges or liens payable out of resenues of the Nuclear of energy prmfuced as a percentage of total energy expected to Facility. The debt sersice included alxne is payable at ap-be puxluced. proximately $36.3 million annually until 200L Maturities of D. Spcial funds- Nuclear Facility Revenue Bonds as a component of suc h debt Special funds consist of $93,060,000 of inve tment secu_ mw payments for the next five years are: 1984 - rities and $921,000 of cash as of December 31,1983, and $11,575,000; 1985 - $12,185,000; 1986 - $12.84 Woo;
$79,171,000 of investment securities and $1,214,000 of cash 1987 - $ U,340,00W 1988 - $ 14.290,000.
at December 31,1982. Under terms of a power sales contract with lowa Power investments are made in U.S. Gos ernment securities, Fed- and Light Company (lowa Power), the Distri( t makes available eral Agency obligations, and bank certificates of deposit. The one-halt of the pnxluction to lowa Power with the balance Debt Reserve A(count in the Debt Service Fund and the Re_ available to the Distnct's Electric System. Iowa P<mer and the serve Account in the Reserve and Contingency Fund are val- DistrictN Electric System each pay a proportionate share of the ual semi-annually at lanuary 1 and July 1 at the lower of u>st nuclear fuel costs (based on energy actually dehvereth plus or market in accordance with requirements of the Nuclear onehalf of all other costs of the facility. Resolution. Gains or losses on valuations are included in in. The District has also agreed to make available, through its vestment income. The securities in the remaining funds are Elecinc System,12%9 of the output of the Cooper Nuclear valued at the lower of cost or principal amount in accordance Station to the City of Lincoln tLincolnL with requirements of the Nuclear Resolution. W PLANT DECOMMISSIONING COSTS: -(2) NUCLEAR FUEL: The District recently completed a study on the estimated 1he District has ente ed into contracts for various nuclear costs of and methcxis of funding for the esentual decommis-fuel components for fuel loadings as follows: sioning of Cooper Nuclear Station. It is eyrcted that the < osts Year Thmugh of decommissioning will be fundal from (1) wholesale and Nd"*' suppiim eYo"j"" retail revenues of the Electric System, commencing in 1984, Uranium Concentrates . Various 1986 tEstimated) inclu ng mnues ony Uncoln for is punhaw of pmw and energy from Cooper Nuclear Station; (2) the use of certain Conversion . . Allied Corporation 1987 Enric hment '. . U.S. Department P"*' f*
- I"*d E"""' '"*"#"C i"N "I UO4 ' P"""""'
its contract for the pu: chase of pmer and energy from Cooper "g ""NY 00,' Fabrication . . G,eneral Elec tnc
. Nuclear Station; and (4) any surplus funds derived from the ownership and operation of the Nuclear facility. The Distri< t Company 1988 Wil continue to review such uists and methoch of funding The District has expanded its capacity for storage of spent as a result of (hanging conditions and requirements for fuel and it is estimated that such capacity will be adequate for decommissioning.
storage of spent fuel, including the fuel w hic h General Ekx tric Company (GE) is responsible for remos ing under contract uith D) CONSTRUCTION AND FINANCING: the Distritt, until approximately 1990. The (ost of disposal of As a result of certain additions and modifications to spnt fuel and fuel in the reactor is being provided as part of Cooper Nuclear Station required by the Nuclear Regulatory the fuel cost of the Nu(lear facility. The disposal cost esti. Commission (NRC), it is estimated that the remaining unt to mated under provisions of the Nuclear Waste Policy Act of complete the facility will approximate $8.8 million. These 1982 as of December 31,1983 ($41.2 million), has been re- (osts will not require additional financing. corded as a liability. A portion of the disposal (ost ($131 m) OPERATIONS: million) has been billed and deposited in the fuel disposal During a s(heduini maintenance and refueling outage in fund. The remaining portion of the disp > sal cost t$7.5 million) April,198 L haidine cra une diovered on the intnior is recorded as a deferred charge ($4.9 milh,on), w hic h will be wrfx e of u ruin of the recirculmion, core Pray and rea tor hilled m 1984 and 1985, accounts receivable ($1.2 million), water clean-up system pipes in Cooper Nuclear Station. Tem-angt interest receivable ($1.4 million). Some of these costs may pirary repairs of suc h pipes were made by the Distric t at a cost ultimately be the responsibility of GE under the nuclear fuel of approximately $7,000,000, in a(cordance with pro < edures supply c ontrac t for the imtial fuel. GE has agreed to commenc e approsal by the NRC, and Cooper Nuclear Station retumed to the removal of spent fuel related to the GE (ontract from opnation in Septemba,198 L in ords to corre< t the < rac king Cooper Nu(lear Station to GE's storage facilities at Morris, pmblem, the District plans to replat e the recirculation, u>re Illinois, as soon as legally possible and practicable, and wtil spray and rea(tor Water (lean up system piping and asso(iaini share certain utsts awx rated uith removal. Eac h party has a < onnections. The Distric t expn is that Cooper Nut lear Mation full reservation of nghts uith respect to bus ba$k payments, all will be out of sersit e for approximately sesen months < om. shared costs, and ultimate respmsibility for thsposition of th" menc ing O( tobn 1,1984 while suc h replacenw* are made. Ment fuel and attendant costs. ~Ihe Diarict and GL h.we en- me evimmed cov of a h mplaenwns and relen! con is tered into an agreement setting out (ertam oghts and region- $48,000,000. The Ele (tric System's share of such estimaini sibilities relating to the shipment of the spent fuel from Cooper (ost is $24,000,000. The District is aho planning to install a Nuclear Station to Morris, ll!inois. The District has also entered new < omputnimi plant management infmmation setem to into a rail contra (t with Burlington Northern Railroad and the saisfy NRC n quirements and the needs of the Distric t. ihe Elgin, lohet & Eastern Railway for the stupment or the tout una of w h serem is estimated to be Wo,000,000. and ymnt fuel, b Elec tric % stem's share of suc h estimated c ost is
- 0) RATE COVENANT: $10,000 000.
The District is required under the Nuclear Resolution to the Distric t plans to pw the tiet tric Sy4em's share of charge rates for ele (tric pmer and energy from the Nuclear suc h ( osts, int luding Lin(oln's share of $8,500.000, from the Fa(ility so that resenues will be at least suffi(ient to pay issuan(e of Elntric Setem las Exempt Commet< ial paper operating egenses, aggregate debt service on the Nu(lear Notes. Linu>lnN share will be repaid to the Distric t through Fa(ihty Resenue Bonds, amounts to le paid into the Debt hilkngs for monthly pmer uists. U
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l STATISTICAL REVIEW Nebraska Pul)lic Power District Electric System, Nuclear Faci l Aserage Number i,i Resenue Custonw's kw H_ hles 9_ _ __Frysm %les __9___ _tihouwmh) Ghouwmis) SALES Retail: Residential . 81,201 735,138 8.2 5 443 08 11.6 Rural & Farm 5.625 87,677 1.0 5.805 1.8 Commer(ial 17,469 534,064 6.2 33,164 10.1 Industrial 93 621,225 6.9 22,717 7.0 Municipal & federal 1,121 1_44,616 _ l.6 7,971 _ 2.4 Total Retail 107,511 2,144,7__40 21.9 5114.263 _l4.9 Wholesale: 52 Muniapahties (Total Requirements) 1,110,466 12.4 , 5 19,423 12.0 18 Municipalities (Interconnection-Partial Requirements) . 218.591 2.4 4,723 1.4 26 Public Power Districts & Cooperatives (Total Requirements) 3,178,132 35.4 101,919 31.8 Other Utilities-Non. firm & Parti < ipation . 2,311,190 25.9 _ _ 5 7,l_2_7 17.5 lotal \\holesale 6,818,381 76.1 5203,216 62.7 lotal Electric Resenues . 8.981,121 100.0 5119,481 97.6 Other Operating Resenues . _ . _ 7,'fu l_ 2.4 total Ele (inc System Operating Resenues . 5127,182 100.0 Prmlut tion GENERATION kwH 9 co.,ty_ . _9 Ghouw mbi _(Thouundo Pnxfu(tion: Iks tric System (locluding Interthange) _398,178 6.1 5 17_,403 _ 7.3 Pur( hased: Power Supply $sstentl ' 4,972,710 52.1 5121,085 50.6 Nuc lear facility
- 1,671,396 17.5 58,833 24.6 Other 2,306.604 21 4 _ 4 2 J)9_2 _l_7.3 Total Power Pur( hased 8,950.710 _91.7 5222,032 '# . 7 9,549,108 100.0 5219,417 100.0 Total Power Produusi and Pur( hael (1) The Llet tric S3 stem pur(hases 1009 of the net generation of the Power Supply $3 stem and 509 of the r.et generation of the Nw lear f a(ilits base (I upon the total (osts of the respet tise sprems. Pursuant to the Power Sales Contract, lowa Power and light Company purt base (I 1,671,801,000 kWH . Iowa Power and light participation is not incluckxl in the table.
NPPD's dollar comes from NPPD's dollar was used for MUNK IP\l A ()MilR opt R silN(, COsl ()f IM )nlR DIPRICI AIN )N AND f E l)t R Al ' alls - 2 41 RI\INL is-2 41 PROl il'C I K )N 3 14 AM( )R II/AIK )N ggg 3g3;g;q l\PlNsl-604 sygsg(ig s\1is-704 i\\f 5. INilRf ST. ANI) gp g l _62 79 ()IHIR I\PINsl5 All ( ( >Mut R( l \l (4 IN MREst IN( OME s Al l s - 10. Il e s %D Oh ll R 6.y Kl\ I NUI M 7 21 RURslAIARM 01HI R Ol'IR AIK)N sqgs_ggy
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Power Supply System l Year F nded I h ember 41.1% 1 158H I 19H1 Im reaw GENERAL ilhousands ut I)ollarsi Utility Plant (at (ost): lles tru %\ sten t 5 8 d 1H 4 2 i 5 W I Jht ' 5J>idii f'( M er 5Uj){} \ h\ Ntt'lli 5 I !*I' ~ 2 5 l 211 HI~ Nut lear I,u iht\ 4i2 #.lH 444424 ~~l4 liital l 'tiht\ Plant 31 ~42 jfai 51 'i l h >4 5 4t ' 416 Number of h e rc<hted Plants ( apabihts ikW i Produ(tion Plant Fa(ilities: Steani -- ( v in\ ent u inal ei l 'l i j hul Nf ean) - Nuc it ar I ~fdiiHH) l l\ t hfil 11 l , i II H l ( hewi ll P1 0 41 l'eak ing l ur bine i 144 ( H u i la ital Pu xlui f a in lLrit I ,n iliht s 5 .' '~~4iHul
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i N i ______________________..-,_L..2.___ _ _ _ . _ . _ - . _ _
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g- j. 4 'I GENERAL OFFICE P.o. BOX 499. COLUMBUS. NEBRASKA 68601-C499 Nebraska Public Power Dis tn.t t
'- TELEPsONE <402) sc4-essi a e p- f NLS8400129 i
May 2, 1,384 4 od ) w I Director 3 Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, DC 20555 ATTN: Document Control Desk a Subj ect: Nebraska Public Power District 1983 Annual Report NRC Docket N'. 50-298, DPR-46 , Gentlemen: In accordance with the requirements cited in 10 CFR Part 50.71(b), the Nebraska Public Power District submits its Annual Report for calendar year 1983. As specified in Regulatory Guide 10.1, we are enclosing ten (10) copies of the report. i Should you have any questions or require additional information, do not hesitate to contact ine. Sincerely, M , Jay M. Pilant Manager, Technical Staff - Nuclear Power Group i
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