NLS8700264, Nebraska Public Power District,1986 Annual Rept
| ML20214Q822 | |
| Person / Time | |
|---|---|
| Site: | Cooper  |
| Issue date: | 12/31/1986 |
| From: | Schaufelberger, Trevors G NEBRASKA PUBLIC POWER DISTRICT |
| To: | NRC OFFICE OF ADMINISTRATION & RESOURCES MANAGEMENT (ARM) |
| References | |
| NLS8700264, NUDOCS 8706050212 | |
| Download: ML20214Q822 (39) | |
Text
{{#Wiki_filter:. 51 i l l i l l l
'986 Annua Reaort .
l m
... 3 l-t s
y e" p1 11-I f . Jg;; A E t [ 'i ep y :f .i f ?aCdl N. 1 U Mr' )g J ll Ca% A p 3 memes p 1 m7 w .
,ih m 9 s k. l.. ge gr g. A &
P M Dd k CjMh,iC3 s'd hilb a hg.gdeLl e,, % g; 1 5 t J [ i L s * ^ ' ' : <~ @ ri _s-7 . . W e . ' JP' f ' . .4 *
, g, . m iig 3 , ,
,s. .
g . . I
& _ ; , ' e>
. ' fk,. % , ;. N*.* _~' , '
..r ~ r.- '
Of& *ry'.
-.n. .. ,, .. . . .. ' ., -
~
- h. '; * -' Q . ,- R '
f*g *9'"* . ~ lf% , jfM WQf;h .. 3iY kNf [.
'4
, d'.
%n "'
k} M p ' %}3'
~
. NY.. '
~
?' ',
f . ' .' . : ;' ' . ! gHP . . ,
.8
, , 'i'.,
.- ., 5
. ' . h,
- s. ', h .' '} . .e l.'
- i.i e, , ' . ' . , .
.'j,.'('
v:. .d. 4* ,. >3.',h s aN w ~ P , .;sc .e
. .,. . '. ',. #/ t. h. '. .t.M . '. r%' .d v'r .. j.
.' '.' a'.-" 4- ' t Y.,s.3. T.ih, ,, ,,.. ,. .
y ' . .' . y y,n. .) s si. <. s - *' y n
..,.,,......e
. . . s
.. g .-.,6 : o, . .. -
.."'l.V.,,..,..-g-.'.
':\ s _
3
- t. , ,.s
. n ': , .k*,.'...,,,.,.
Yh lt h , l \?. I' n, . kr b,.,$. 5h,7*s,q , F-h'.pY,?'.N. O.^. '? 4
, '. p g . . h. . ;g. ; , .M e ,+
n -l. :.?- - - -
. eq . < - , . .,
- k. m, '< [ . , ", ., 5 ' . . , , i <f '
't.
-.- : :. ..'h;}p;% -
.: y ..4,,v % < ,w; H 4. <:
; . .. .e ..,7 .. . ,, : -.
.: ', .,'( _ .. .'~-
s . ~
~;g,d_'D . . .
,i e hJ .y: gc. '9 .
1,
',s. . . ,
['-
.. r h . t
' .'j_E 4 ,"_.,' 'j. h'], l $8 ,$lr H f s ,'
,' f*j '
's
' ;i:
.s 'y >.; . .:: -
' ,g _yy%of A '('. .* - *jfl g ~[ryO',f*"
i ;? e n!? .h . gg(y , + 32y Gj
.. ' .,!m/4 '), j A *) p ? f - ' '*
h.' '.f.s e -
? !gl$y +?-$D ' ' ? ' . ,i ' '
~
.le.( :, 7.n y.s:.
} l fff y ?.. . ,,. g.w> v..
.c a; - .
s
.g.?-:M . -
- c . i .
- c. .. 5 .,,: > -
.J.
s'yl l y fi~: '.'.U'. 3;V q g_ ./. .- + ...
- .. . .. .., a,
. V !
. . . . , f ~ .; . ~ . _ . .-' ,
' - ~
- q
'. Y -
. , A-. . .
f+ e e . ;-
+ L .< ' , -
.I'?g -_
-f v.
' ~
. 4 .'
- i
,4
. f T. , g 9'.
{~_ a , 'en
. . . ea. .,
w I 8P
.%.,; ,h . z
,"a .
y
- c. :,t , . ~ ,. t ' - . , .
><c
-w ,W
, - ? -
p., - - .- .. - ..: : . ..' . ,};. .a... i .
' ' ' ' . . , , - - ', ;.g # [ 1, p. ** . , ' eg
_ ~ ~ -. .
m Year At A Glance-Electric System Kilowatt-hour Sales . ......... ..................... 8.9 Billion Operating Revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $343.4 Million Cost of Power Purchased and Generated . . . . . . . . . . . . . . . . $258.3 Million (Including Nuclear and Power Supply Systems) Other Operating Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 66.9 Million Net Revenues . ... ............................$ 6.9 Million Debt Service Coverage ..... ... ............ ... ... 1.62 Reference Guide Statement of Purpose . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 1 Board Officers ar.d Senior Management . . . ...................Page 1 Message from the President . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 2- 3 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pa ge 4 Message from Board Chairman . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Page 5 1986 In Review . . . . ... . . . . . . . . . . . . . . . . . . . . . . . . . . .- Pages 15 Financial Commentary . . . .......... ............ .... . . Page 16 Financial Report . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 17 -33 M a p of System . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 34-35 Statistical Review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pages 3 4 3 7 Cowrphoto courtesy Nebmska Farmer
Nebraska Public Power District Statement of Purpose 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 subdivisions 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 plants, transmission lines, substations, distribution sydtems, 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. 198ti OFFICERS OF TIIE BOARD OF DIR$CTORS Bernard M. Delay, Chair nan David L. Duren, Firat l' ice-Chairman Thomas O. Michels,Second \~ ice-Chairunan Wayne E. Boyd, Secretary Brace W. Gustafson, Treasurer SENIOR MANAGEMENT Donald E. Schaufelberger, Freddent
*Dilworth A. Blat @ ford,l' ice-Pnsidait Cecil R Jones,1' ice President Lawrence G. Kunci, l' ice-President Theodore M. Kyster, l' ice President and Ausistant Treasurer William A. Merrili, l' ice-President GENERAL COUNSEL CONTROLLER Gene D. Watson Robert D. Malmstrom
- Retired durmg 1986.
I f )I
1 i 1 l h y. , 1 7 1
.e A Report From The PRESIDENT As we review 1986, we are encouraged by the stable condition of Nebraska Public Power District and approach the future from a position of strength.
Decisions made in past years have proven beneficial to the District and its ratepayers during 1986 when the economic conditions in the state were sluggish. We have ample generating capability and a manageable construction program. Our rates remain well below the national average. We concluded 1986 with record total operating revenues of $343.4 million which was an increase of 4.3 percent over 1985. Although total kilowatt-hour sales were 8.9 billion, or 10.2 percent more than the previous year, the increase was largely attributable to significant increases in participation power and other non-firm sales. If we eliminate these
- participaticn and non-firm sales, our firm kilowatt-hour sales for 1986 were 2.7 percent below 1985. We attribute this decrease primarily to l temperate weather and above normal rainfall during 1986.
The District is making a maximum effbrt to maintain electric rates at as low a level as practical without jmpardizing reliable service. We are certainly aware of the current economic conditions in Nebraska and realize that large increases in the cost of energy could adversely affect l our customers. At a time when some utilities were facing serious financial problems ! bringing new plants on-line, our construction program was winding down. Our last major generation rescarce, the coal-fired Gerald Gentleman Station Unit No. 2, went into commercial operation in 1982. A statewide resource and transmission planning study was completed during 1986 by the Nebraska Power Association (NPA), an organization comprised of Nebraska electric utilities. The study projected a statewide compounded annual peak demand growth rate of 2.1 percent from the 1986 level and concludes that a new 600 megawatt base load coal-fired generating unit will be needed in the state in 1998. This projection included planned retirements of some existing capacity and assumed that. the installation of additional load management for summertime air conditioning and irrigation would result in a reduced rate of growth in peak demand. 2 I
The District is currently projecting a compounded annual peak load growth of 1.9 percent, resulting in capacity deficiency for the District occurring in 2003. We are the largest electric utility in Nebraska, the nation's only totally public power state, and thus it is important for us to be aware of the perceptions of our customer / owners regarding our image and service. On a biannual basis, we commission a consumer market study to monitor the image and positioning of the District in terms of specific services being offered and the actual promotion and utilization of those services. The most recent study was conducted in 1986 and, continuing the trend established in 1981, the vast majority of our retail and wholesale customers surveyed hold the District in high regard and think we are doing a good job. Approximately 95 percent of our retail customers surveyed rated the service they receive from us as excellent or good. Over 90 percent of the respondents, whether served directly by NPPD or served at retail by a NPPD wholesale customer, rated NPPD as average or above. Approximately 64 percent of this group said we were doing a "far above average" or "above average" job. Some 70 percent of the respondents I "strongly agreed" or " agreed" with the statement: "NPPD cares about you, l the people they provide power to." l There is little doubt in my mind that these high marks are a direct result of the dedication and commitment of our employees. It is a continuing challenge for all of us to maintain this very positive image. Nebraska's greatness is the product of its people, and NPPD's success
-is no different. With the dedication of our employees, the support of our customers, and the opportunity to serve citizens of Nebraska, NPPD will strive to see that everything we do contributes to the continued progress of the Cornhusker State.
Finally, I want to take this opportunity to recognize Bernard M. Delay who retired from our Board of Directors at the end of 1986, after his fourth term in office. Mike, as we have affectionately come to know him, served continuously on the Board of NPPD and its predecessor utility, Consumers Public Power District, longer than any other person-23 years. His exemplary service and dedication to Nebraska's electric utility industry will long he remembered. As a service-oriented organization supplying necessary energy to our customer / owners, we do not have the luxury of resting on our laurels. We wil! continue our efforts to improve on our record. i $ Ib vW~ Don E. Schaufelberger President and Chief Executive Officer 3
The Nebraska Public Poicer District's BOARD OF DIRECTORS d
~
) h'q.? .
George 11. Bartwr Wayne E. Boyd Bernard M. Delay David L. Duren Beatrice, Electrical Contractor South Sioux City, Attorney Northik, Banker Columbus, Certified Public Accountant eC.
< s 4 glt ilruce W. Gustafson iloidrege, FarmertRancher Fred A. lierrington 1.incoln, Businessman M t Ralph E. IIolzfaster Paxton, Agribusiness! Farmer Ralph D. Johnson 1.incoln. Economist I
~
a,
) ,
.'- i
', .~ l I
i Thomas O. Michels Darrell J. Nelson Les Tay lor Kearney. l'rofessional Engineer (h onto. Farmer l Rancher York. B usinessma n i
/ Newly Elected Board Member 1
'f
* * -4 .
- In November,1986, Warren R. Cook, of Norfolk, was elected to the Board of Directors l
I i
-a '
succeeding Bernard M. Del.ay, who did not l
. , seek re-election. Mr. Cook is the self-employed '
4 owner of Cook I.ivestock Insurance. i IIis term began in ,lanuary,1987. ' Warren R. Cook 4
Message From The CHAIRMAN OF THE BO'ARD Indications are emerging that the economic conditions in our largely < l rural service area of Nebraska are on a path of recovery, but economists l
- generally agree that there are no conclusive indications of a sustainable
. economic recovery. _ .
The Bureau of Business Research at the University ofNebraska-Lincoln reported that Nebraska's economy expanded during the first two quarters of l 1986 but " appeared to ha~ve stalled" at' midyear. Real output is up an i estimated 1.0 percent which is well below the state's long-term average increase of 3.25 percent, but still the signs are encouraging. Cautious optimism prevails in the rural sector where the balance of trade is said to be improvingand agricultural exports are projected to increase over the next 12 months. Any turnaround in the trade situation will be gradual and require years before the deficit and balance of trade are substaritially redu'ced. Declining land values, a major cause of recent farm foreclosures, are reported to be stabilizing. The numberofNebraska bank closings in 1986 was - less than in 1985. Improved livestock prices and recent bumper grain crops - are encouraging indications that better conditions lie ahead for agricultural producers. ; Industrial expansion in our service area was also encouraging during 1986. By year's end,23 industries had announced they were either moving into the area or expanding their existing facilities. Particularly noteworthy is that the industrial expansion encompasses both agriculture-related a'nd nonagriculture-related industries. The rate of growth in enrollment at Nebraska institutions of higher education exceeded the national growth rate during the year. , This utility's Board of Directors, ofwhich I was proud to have been chosen ! to serve as chairman during the past year, endorsed the District's continued - involvement in economic development. Noting that the District has been a l leader in area and industrial development in Nebraska for the past 20 years, L we agreed that continued involvement will result in strengthening the state's ! economy by encouraging growth and employment. j And finally, during 1986, the District made plans to embark on a new ! campaign to renew Nebraskans' pride in their state. The program was implemented in early 1987 and adopts the slogan," Powerful Pride in ' Nebraska." With this program we hope to encourage an emphasis on positive _. attitude as the state digs out from a period of slowed economic activity. We truly believe there is much in Nebraska of which to be proud. i .P l-f, Bernard M. Delay b Chairman of the Board l l l 5
,n . ,.2 -_. ....m -se ------g - - - - - -- - - - - - - - - - - - --
---w-I J
r1. mp
. a.
E. l g 7 m - ti x, A" yq f: [ ' ,3
.9 e aj 4* E o
'i . 5 4 / 4 E" ,
f,se
-!6 . 4 , ". . '
.e. s.'
~
' .i- A 9%
f._' 9
M E~~ *2 %A s
n g
) ^I .,.
% g,],
&.- j
/ f l
6
~ M; @l' h ,j
'-Si p y .,
z y
'. .yl;*g" +
O,c; 7 Year in Review "MlgQ - 7L w ., ya
-f Total kilowatt-hour sales in 1986 were 8.9 billion compared to 8.1 billion in 1985. Kilowatt-hour sales in 1986 were 10.2 percent above the 1985 sales.
Sales from non-firm transactions, ex-cluding participation sales, increased 92.6 percent in 1986 comparcd to 1985 and there was a 59.6 percent increase in partici-pation power sales between the two years. Increases in both of these categories of non-firm sales to other utilities were largely due to increased generation at the Cooper Nuclear Station. The substantial increases in these two categories ac-counted for the increase in total kilowatt-hour sales. Firm wholesale deliveries to other public power districts and rural coopera-tives decreased 4.4 percent in 1986 com-pared to 1985. Firm wholesale sales to municipalities decreased 1.4 percent in 1986 compared to 1985. Retail customers used 1.0 percent less electricity during 1986 than in 1985. Electric System operating revenues in 1986 rose to a new high of $343.4 million which is 4.3 percent more than the 1985 operating revenues. Operating expenses for 1986 were $325.2 million which is 5.1 percent higher than operating expenses in l 1985. Operations of the Electric System re- l sulted in net revenues of $6.9 million. I These net revenues, when adjusted for noncash items as provided in the District's Electric System Revenue Bond Resolution, resulted in debt service coverage of 1.62. The District served an average of 106,904 retail customers during 1986. The District served the total requirements of 52 municipalities and 26 other public power districts and rural cooperatives at wholesale. Also, the partial requirements of 19 municipalities were served at v holesale. mm ., 7
, L-
7 s s t L ( In addition, the District makes partici- ings during 1986 continued to be a credit pation sales to the Omaha Public Power due to a surplus in the PCA account ac-District from the power and energy pro- cumulated during portions of 1985 and duced at Gerald Gentleman Station Unit 1986. When the account reaches plus or l No.1 and to the City.of Lincoln from the minus $4 million, an agreement with power and energy psduced at Cooper wholesale customers requires an adjust-Nuclear Station, Gerald GentJeman ment in the factor to reflect a surplus or Station and Sheldon Station. deficiency in collections. Approximately 75 percent of NPPD's We also began 1987 with a PCAcredit total kilowatt-hour sales including partic- to refund excess revenues collected during ipation and other non-firm sales was to portions of 1986. Approximately $8.4 mil-wholesale customers and 25 percent to ' 4 lion was credited to customers from the retail customers. PCA account during 1986 and approxi-For the sixth consecutive year, the mately $7.1 million is to be credited during District's firm wholesale and retail cus- 1987 assuming there is no additional ac-tomers did not set a new summer peak cumulation or shortfall in the account. demand on the system. This generally A positive or negative PCA factor re-reflects summer weather patterns, load sults from the difference between esti-control efforts, and the state of the agri- mates and actual fuel expenses and other cultural and industrial economy in our production costs in the generation process. service area. County treasurers in 70 counties re-The District's 1986 summer firm ceived in-lieu-of-tax payments of approxi-power demand of 1,586 megawatts is mately $4.5 million. The in-lieu-of-tax approximately 7.8 percent below the com- payments are required under state law. parable record peak demand of1,720 Distribution is made by county treasurers megawatts set in 1980. The highest winter to counties, cities, villages, and school dis-firm power demand of the year was 1,212 tricts according to a prescribed formula re-rhegawatts. The record system winter peak lating to mill levies. of 1,288 megawatts was set in 1983. As a result of agreements leasing elec-Irrigation and air conditioning loads trical distribution systems to the District, in the summer result in our utility being a cities and villages with such agreements summer peakmg system. received approximately $9.2 million We continued to rely heavily on coal to during 1986. fuel our electric generating resources dur- At year's end, the District had lease ing 1986. During the year, approximately agreements with 210 cities and villages. 53.5 perednt of the District's energy supply Five electrical distribution systems was from' coal-fired resources,20.4 percent within municipalities are owned by the from nuclear resources,25.0 percent from District. hydro (water) resources including our firm New residential construction in our purchases from the Western Area Power service area continued a downward trend Administration (WAPAL and the remain- in 1986, and thus our marketing campaign ing 1.1 percent came from a variety of oil aimed at improving the system load factor and gas-fired resources. by encouraging installation ofelectric heat The Production Cost Adjustment was targeted toward the conversion and (PCA) factor on retail and wholesale bill- add-on markets. 8
- f0
~
_ ;V 3
',r W.
2 g ";,
., s,. i- c,
- g. e"'
i\\ #8
' +,
N
& 'l .,
- ) %
- W} - i-
_. ,> . r
-y gr
.,.,,. 3 1 5 l0;f To be prouel ofNebraska is to be % i "b'~" proral of the institutions that snake her Dy m & m ew ?
~
strong. A n agricultural econoiny that is w-
' ~
her backbone. Thriving industries ~ ~~ ~~~ ~ ~~
~
--~J that sustain heririth theirjactories and
~
~^N ~~
their p nrer plants. their railroatis an<l their hightrays Educational institutions that prepare her ne.tt generation to carry on retth the u ork of the last. All of these gir e nicaning to the u orde "l%rerfid I' rule in Xchraska.' p- 3 9 A \
Efforts to balance the winter load with Gentleman Station through 1996 under the summer load resulted in 522 electric the terms of the District's unamended con-heat installations during 1986 served by tract with ARCO, and the projected cost of our retail system. This represents approx- purchasing from ARCO agreed upon imately 11,900 kilowatts. At year's end, we minimum quantities of coal at reduced had a total of 18,381 electric heat installa- prices under the terms of the amended con-tions served by our retail system repre- tract, and purchasing the balance of the senting 329,237 kilowatts. plant's coal requirements through 1996 During 1986, the District sold from alternate coal suppliers. Beginning in
$76,335,000 of Power Supply System Rev- 1990, the District will be able to purchase enue Bonds to refund bonds which were from alternate coal suppliers the difference issued in 1985 to prepay the capital cost between the minimum quantities ofcoal to associated with the purchase of capacity of be supplied by ARCO and the total coal the Kingsley Hydroelectric Project, a nom- requirements for Gentleman Station.
inally rated 50 megawatt hydroelectric ARCO has supplied coal at the plant generating facility owned by the Central since the first of two units went on line in Nebraska Public Power and Irrigation Dis- 1979 and will continue to be the major trict. Bond proceeds provided advance re- supplier of coal at the plant. Gentleman funding of $64,680,000 million in Power Staticn will use approximately 38 million Supply System Bonds issued in 1985. tons ofcoal during the 11-year period from The First Boston Corporation and 1986 through 1996 at an estimated deliv-Associates purchased the bonds at a net cred cost of $950 million. efTective interest rate of 7.43 percent. The Following a successful initial effort in original bonds that were refunded were 1985, the District in 1986 again used sold at a net etTective interest rate of10.076 wheat, one of Nebraska's leading agricul-percent. The lower interest rate will result tural products, instead of sand to in aggregate debt service payments to be " grain-blast" electrostatic precipitator reduced by approximately $15.7 million components at Gentleman Station. over the 35-year life of the bonds. Electrostatic precipitators use an elec-The entire electrical output of the tric charge on a system of wires and plates Kingslev Project is being made available
~
to attract fly ash to the plates and to keep to the District under terms of a contract the talcum-like ash from gomg out the between NPPD and the Central District. exhaust stacks m, to the air. Wheat is softer Lower prices for coal and a renegoti- than sand and it is beheved wheat will not erode the expensive metal plates and wires ated coal supply contract with Atlantic as sand would. Richfield Company ( ARCO) are estimated to save the District's ratepayers between Several thousand bushels of wheat was used in the blasting.
$83 and $88 milhon through 1996.
Two miles of rural road in central Ne-Due to an abundant coal supply and a braska will be monitored to see how the resultant softening in coal market prices, road, surfaced during 1986 with waste fly the District began negotiations with sev- ash from Gentleman Station, stands up to eral coal suppliers in Wyoming's Powder traffic and weather. The road surfacing, River Basin in an effort to reduce fuel costs using the ash, cost about $40,000 a mile, at Gerald Gentleman Station. Those approximately half the cost of conven-negotiations culminated in 1986 with an tional asphalt surfacing. About 2,500 tons amendment of the District's existing coal of the talcum-textured ash was used in the supply contract with ARCO. The savings test project, believed to be the first time estimated by the District result from com- the process has been used in Nebraska. parisons of the projected cost of purchasing The District paid $10,000 of the project's all of the estimated coal requirements for cost. 10
--~
) .l;.
Iggy-i
,, =m. , r, .. :
e ,v_+ r , c 4',. 4
>s
.. . *- : _y
' ~
From the routine monitoring of peak load controls on irrigation systems, to the active support of economie development efforts throughout the state; from its ongoing support of Nebraska industry, to its generous donation of historic property to the U.S. Fish and Wildlife Service, NPPD takes "Potecrftd Pride" in the many trays it is able to participate in the life ofNebmska. 11 w
r During 1986, the District realized square feet to the existing facility as wel! nearly $57,000 as the result of the sale of as renovate the existing 16,000 square foot 33,707 tons of Gentleman Station's fly ash. building. Completion of this project will A new coal handling system, which is allow the nuclear operations division per-expected to improve the reliability and sonnel to be located under one roof as well availability of generation at Gentleman as reduce overcrowding in the current Station, was installed during 1986. The facility. Regulatory requirements have new system is underground, and thus is significantly increased the manpower protected from the elements, whereas the levels at Cooper Station since commercial original stacker-reclaimer system con- operation began in 1974. veyed coal into the plant via an exposed The Nuclear Regulatory Commission, belt system. during the year, cited the District for vio-The new system features six hoppers lations of NRC regulations at Cooper below the coal storage yard, three of which Station and fined the District a total of are equipped with a vibrating mechanism $75,000 as a result of the violations. to shake loose coal that may become com- During the year, the District shipped pacted above the hoppers. Total cost of the 378 spent nuclear fuel bundles by rail from project was approximately $2.4 million. Cooper Station to a General Electric stor-The two units at Gentleman Station age facility near Morris, Ill. There are 588 had net generation of approximately 4.8 spent fuel bundles remaining to be shipped billion kilowatt-hours during 1986, to the Morris facility. During 1986, the District's Cooper The District, during 1985, began a Nuclear Station operated at a 71.9 percent program requiring each employee who has level of unit availability. The unit had net unescorted access to Cooper Station to generation of approximately 4.1 billion undergo urinalysis on an annual basis to kilowatt-hours during 1986. determine if the employee had recently Major activities completed during a used illegal drugs or alcohol. Approxi-scheduled maintenance and refueling out- mately 400 employees have unescorted ac-age in 1986 included Control Room Design cess to the plant and are covered under the Review modifications which allow for im- requirement. proved operator interface with plant sys- Two employees in the Nuclear En-tems, installation of a new Alternate gineering Department filed suit against Shutdown System, which will allow re- the District in 1986 alleging that the al-mote shutdown of the reactor should the cohol and drug testing program for em-control room become uninhabitable, and ployees having unescorted access to Cooper replacement of an existing plant process Station violates their constitutional rights. computer with a new computer and associ- The suit, filed in United States Dis-ated software for a Plant Management In- trict Court in Lincoln, contended that the formation System computer. drug testing requirement violated their Construction of the new Cooper Sta- constitutional rights to free exercise of tion Training Center was completed dur- religion, privacy, due process and equal ing 1986 and the Nuclear Power Group protection, and their rights against self-Training Department moved into the new incrimination and unreasonable search facility. The new Center will also house a and seizure. new plant simulator for which procure- In February,1987, the court held for ment activities are now underway. the District on all claims asserted by the Design work was completed and bids two employees in the lawsuit. were solicited during the year for an addi- Construction on the 67-mile 345,000 tion to the administration building at volt transmission line extending from Cooper Station. The project will add 20,000 IIoskins Substation in northeast Nebraska 12
q ",
%Z gj;.,,,..'==**8 *# #
U _,. wens # W - U L;.l~?; ggf..'.'**:sv'k N3:;Z :: [ . :ikpf&g&i nL&{
? .
,, \
e C%p d.T b% te;; , , w
h,!*-'2,3Q "
J. ,
"0 N .,, ' ~ ^
[v- .-
~ map $
f
?
m_ -
. . : f;
-g f ..
2 M,# - w u' a
~
4 ,m , .
%jg
* - _ c
-{.f.. ~
y .. 7 . , nn [. ..}
' m,i 3- .
] S g
4 e 1' e hhh pin
$hkh '
3 , . Tf . r, g-
.a ; 'O '
y; .
. . - ;u.. / ,. ."
-. ~
./, . d 1 '^
g ' f.9gh$h.' ."& :h..' ,. ,1 ' . I' ,,' / ,. :
.' f-.
. . y ./ . 'h
~ .
x . :: ~ ;j a'y9L..a'j$f.y pfh/nl; ; \ z s. \ sto ortti <lt!!!!tip' (pn .gyx 'Y'gw <
/8
~
\ C 'llll ","il,7l'.'"Cr i";3llI';;'? ~'''
)
Q
^
s
~
[ '
l to the Raun Substatian in Iowa was com- and supported by the U.S. Econcmic pleted dur;ng the year. The line was built Development Administration. to provide better electrical reliability for The workshop included sessions on northeast Nebraska and to serve as an in- how communities could effectively or-terconnection between the District and ganize forjob development, the use of Iowa Public Service's Neal Generating realistic techniques for attracting new Plant. businesses, economic development assist-Work on the line, which crosses the ance available in Nebraska, and retaining Winnebago Indian Reservntion, began in and expanding local businesses and 1979, but was stopped in 1980 when a fed- industries. eraljudge ruled the District could not con- The District's irrigation and hydraulic demn Tribal lands. division r eceived the 1986 Progress Award In 1984, the District and the Win- from the Nebraska Water Conference nebago Tribe of Nebraska signed an Council during the year. agreement that permitted the District to The award recognized the District's complete the transmission line. Construc- contribution to economic stability of the tion resumed in 1985. Platte River Valley over the past 48 years. The District received national recog- The District was cited for providing a de-nition when it donated a small but historic pendable supply of water for irrigation, piece of property to the United States gov- power generation, recreation, and wildlife. ernment. The 71-year-old Cornell Dam Supplemental storage water is sup-and Niobrara Ilydro Generating Station plied annually by the District to seven ir-was donated to the U.S. Department ofIn- rigation systems that serve some 75,000 terior's Fish and Wildlife Service, which acres in the Platte River Valley. operates the Fort Niobrara National During the year, the District tested its Wildlife Refuge in Nebraska. The property emergency action plan which is designed is bordered on all sides by the wildlife to provide early warning to the public in refuge. the unlikely event that the Lake Maloney, The property included about eight Sutherland Reser voir er Keystone' dams acres ofland, the dam and hydia station, a should fail. Personnel at the District's irri-six-room house, and a garage. The Fish gation and hydraulic regional office con-and Wildlife Service had expressed inter- ducted the test in cooperation with local est in acquiring the property, located on civil defense officials and representatives the Niobrara River. of other agencies. It was determined that renovating the An automatic alerting system, which old power station and restoring it to ser- would detect water leaking through the vice would be too expensive tojustify. The dam at Lake Lloney, was installed dur-plant has not been used since 1985. ing the year. The sensor system, a new fed-Community leaders from all areas of eral requirement for dams such as at Lake Nebraska attended workshops on small Maloney, would automatically sound an town economic development sponsored alert at the District's North Platte Ilydro during the year by the District and the Na- Station in the unlikely event of a leak. tional Association of Towns and Townships 14
-- 4
\
; . ,..,.( _ ,.- ,
' p s
%--O >
.+ ..h .n{ :,y a ' f. Q '
g.
'g , c' :P:i j8cy .
ME ~'
%$u * > =jg.
W '
- - - + ;
;y. Q ;W ,
. g ,.; .
.g #/ 1_iv. ; A;uyt. O' dh. , g g%' gy[..:q,i~'Y'j ('{(ylw',".s - j,
' ./ _.,,,; ;
."b :7 1, ' ?';
x, .I ' . ;
. Mh3 -
y k 7, cy - ti: eM o
, g) 'i
., p&; ,,c:,,
- f y,,
>- . lm~ **
,, $OS i f '
/ '-
\ (i y 4-
.s3, -
,Q
+
4; a.3 g
\
ses set,>,toispe,,,.e;g"( s a<
0"tstretchcd 1
P ,i,1asurer 16
e
. -n s., .
m k
.(, 9 s e
- 1. ,
~
Nebrad Public Power District - ELECTRIC SYSTEM > Report of Independent Public Accountants To the Board of Directors Nebraska Public Power District: ' We have examined the balance sheets of the Electric ' .,. tem of Nebraska Public Power District (a public corporation and political subdivision of the State of Nebraska) as of December 31,1986 and 1985, and the relatai statements of revenues and expenses and accumulated net revenues and changes in financial pxition for each of the titree years in the period ended , December 31,1986. We have also examined the supplemental schedules of the
, calculation of the debt service ratios for each of the three years in the period ended December 31,1986. Our examinations were made in accordance with generaliy accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considertd 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 31,1986 and 1985, and the re ults ofits operations and changes in its fmancial positica for each of the three years in tlw period ended December 31,1986, and the supplemental schedules of the calculation of the debt service ratios for each of the three years in the period ended December 31,1986, present fairly the informat:on set forth therein, all in conformity with generally accepted accounting principles applied on a - consistent basis. Coopers & Lybrand ' 600 Woodmen Tower Omaha, Nebraaka 68102
, March 6,1987. l i
Nebraska Public Power District ELECTRIC SYSTEM llalance Sheets Det emher 31,1986 and 1935 i 29N6 19't3 ASSETS cli.< u.and. or nouar.> Utility Plant, at Cost .5667,455 $646,621 Less-Reserve for depreciation and amortization (Note 1) . . . 270,906 252,333
$396,555 $394,280 Debt Iteserve Account .$ 30,542 $ 30,668 I?oceivables:
Advance to Power Supply System (Note 4) .$ 6,103 S 6,100 Sale of property . 1,065 1,449
$ 7,165 $ 7,549 Currtnt Asmts:
Cash and investments '.iote 1) . . .$ 111,648
- 117,115 Iteceivables, less reserves . 35,17s 33,676 Materials and supplies, at average cost . 12,520 14,853 Prepayments and other assets . 658 598
$160,004 $166,244 Deferred Compensation Plan Assets (Note 7) . . .$ 8,387 _$ 7,248 Deferred Charges:
Nuclear Facility billings (Note 1) . .$ 32,124 $ 37,900 Power Supply System billings (N<te 11 4,170 2,060 Unamortized Gnancing costs . . 2,327 2,525 Other. . . 3,383 4,358
$ 42,004 $ 46,843
$644,657 .$652,841_ _
I.lAlllLITIES AND CAPITAL Accumulated Net Itevenues . .$177,083 $170,15') long-Term Debt (Note 3) -
. .$340,018 $349,772 Notes Payable tNote 3):
72S's of prime, due 1986 .
- 6,000 679 of prime, due 1986 to 1989 . 5,985 9,232 Commercial Paper Notes (Note 4) ._ 76,180 76,180
$422,183 $441,184 less-Current maturities (Notes 3 and 4) . . 32,993 34.896
$389,190 $406,288 Current Uabilities:
Current maturities . .$ 32,993 $ 34,396 Accounts payable . . . 17,280 13,789 Accrued lea.+ payments 5,577 6,233 Other. . . . 12,162 12g6
$ G8/112 $ 66,954 Deferred Compensation Pian Liabilities (Note 7) . .
.$ 8,387 $ 7,248 Unamortized Payment Iteceived for Ite6nancing Costs . . .$ 1,985 _$ 2,201
$1WFH M52fli The accompanying notes to financial staternents are an integmi part of these balance sheets.
i8
5 k a Nebraska Public Power District - ELECTRIC SYSTEM x { State:nents of Revenues and F.xpenses ac.d Accumulated - Net Revenues for each of the Three Years in the ' Period Ended December 31,1986 ~ 19H6 1985 _ 1984
<Thou na. or poriar. -
1' Revenues and Expenses: Operating Revenues (Note 2) . . . . . . .. ...... . . . . . . .$343lJ60' $329,096 $327,931 . 7 j Operating Expensas: Power purchased-Nuclear F<icility ara Power Suppl3 System (Note 1) . . . . . . .$205,361 - $185,140 $195,868 " 42,330 Other ... .. . . . . . . . . . . . . ....... . . . . . . . . . 38,944' 40,753 Production- ! Fuel. ..... . . .. . . . .. .. . . . . . . . . . . . . 6,882 8,569' 6,795 Operation and maintenancu , . . . . . .... . . . . . , . 6,917 6,241' 6,116 Other operation . . . . . . . . . . . . . . . . . . . . . . 23,438 22,864 22,086 { Other mainter.ance . . . . . . . . . . . . . . . . . . . . . 7,377 7,262 6.961 s Lease payments (Note 1) . . . . . . . .. . . . . . . . . . . . . . . . 9,161 9,227 8,940 Depreciation and amortization (Note 11 .. . . . . . . . . . 22,509 22,832 22,759 - Payroll taxes and payments in lieu of taxes . . . . . . . . . 4,452 6,471. -6,317 Total operating e.xpenses . . .. . . . . . . . .!325,241 $309,359 $316,172 Net operating revenues , . . . . . . . .$ 18,119 $ 19,737 $ 9,759 4 Interest and Other Revenues 1 Allowance for funds used during construction . . . . . . . .$ 1,219 $ 1,233 $ 1,100 I Intertst and other . . . . . . .... . . . . . . . . . . . . 12,399 '14,375 '17,388 i Total interest and other revenues . . . . . . . . . . . .$ 13,618 $ i5,608 $j8,568 Net revenues before other deductions . . . . . . . . .$ 31,737 $ 35,345 $_28,327. j Other Deductions: Bond interest . . . . . . . . . . . ... . . . . . . . . . . .$ 20,891 $ 21,348 , $ 21,739 , Other interest . . . . . . . . . .... . . . . . . . . . . . . . . . . 3,913 4,245 5,050 5 Total other deductions . . . . . . . . . . . . . . .$ 24,804 $ 25,593 $ 26,839 l 1 Net Revenues (Note 2) . . . . . . . .. . . . . . . . . . . . . . . .$ 6,933 -$ 9,752 $ 1,488 i- Accumulated Net Revenues: 1 Beginning balance . . . . . . . . . . . .... .. . . . . . . . . . . . . 170.150' 160,398 158,910 '
- Ending balance . . . . . . . . .. . . . . . . .
.$303 $E0150 $160A98 1 1,
) ire accompanying notes to financial statements arv an integral wrt t of these statements.
I 1 i 19
-,.-,,- , , , _ . .m-,-,-. ,g.--,.,, ,_ . . _---o ,w_
( Nebraska Publi- Power District ELECTRIC SYSTEM Staternmts of Changco 'n Finar.cial I l'ositbn13: each of the Three Years in the Period Ended De(ember 31,1986 19M6 1945 19s4 finousands of Dollars) Funds l>rovided by Operations: Net revenues . .$ 6,933 $ 9,752 $ 1,488 Add items which require no current outlay of working capital-l Deprecietion and amordzation (Note 1) 22,509 22,832 22,759 l Amortization of deferred charges-Nuclear Facility (Note 1) 13,356 13.324 12,769 Power Supply System (Note 1) . 1,310 - - Other 865 778 633 Total funds provided by operations .$ 44,973 $ 46,686 $ 37,649 Other Sources of Fuads: Proceeds fro n commercial pr.;rr notes . - 25,500 80,000 Itepayment of Advance to Power Supply System - 23,900 - tincrease) decrease in recei, ables (1,500) 6,885 2,487 (Increase) decrease in materials and supplies . 2,333 2,981 (7,939) Total funds provided .$_Q,806 $105,952 $,1,12y)7 Funds Applied: Utility pl,nt additions .$ 25,671 $ 22,548 $ 23,170
}{epayment of commercial paper notes .
29,320 - Addition to derened charges for Nuclear Facility 7,580 20,259 15,581 lletirements of long-term debt . 9,883 9,432 8,998 llepayment of notes payable 9,247 9,248 9,014 (IncreaC decrease in accounts payable (3,4911 2,967 3,308 Addition to deferred charges fin Power Supply System 3,420 2,060 - Increase (decrease) in fund balances . ,, (5,593) 1,318 22,036 Advance to Power Supply System . . 30,000 Other working capital changes 590 8,394 1,230 Other . (1,501) 406 _ (1,143) Total funds applied . ._,$ 45_,806 $ 10 ~),952 $[12,,1ff7 The accompanying noten ta financial statertents are an integral part of these statements. 20
. ~. ;
'e
~
v M _. 4 4 3 t i n Y
=m
. Nebraska Public Power District ELECTRIC SYSTEM-- -
~ Supplemental Schedules-Ca.lculation of Debt Service Ratios for each of the Three Years in the Period Ended December 31,1986 .
^
19N6 19N5 IMI (Thou7nds of Dollars) Operating revenues . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$343,360 $329,09'6 - $327,931 Operating expenses, excluding, depreciation and amortization of I
$23,374,000, $23,610,000, and $23,392,000 . . . . . . . . . . . ... . 301,867 1285,749 294,780 l
$ 41,493 $ 43,347. $ 33,151' Interest and other revenues, excluding iliterest on construction funds of ~
' $4,383,000, $5,084,000, and $6,041,000 . . . . . . . .... 8,0_16 9,291 11,347.
Net revenues available for debt service . . . . . . . . . . . . . . . . . . . .$ 49,509 ~ $ 52,638 $ 44,498 Amounts deposited in the Electric System Debt Service Account-Principal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ ' 9,603 $ . 9,158 $ 8,727 Interest ......... . . . . . . . . . . . . . . . . . . . . . . .... '20,891 21,348- ' 21,789 _$_3_0,494 (3g $ 30,516 1 Ratio 'of net revenues available for debt service to debt service deposits . . . . . . . . . . . . . . . . . . . . .. .. 1.62 1.73' ljG-The accompanying notes I:s financial statements are an in'egml t part of these statements. I
. ~ 21 - ,
Nebraska Public Power District D. Deferred Charus-Deferred charges are as follows: ELECTRIC SYSTEM %,, ,m.ai:;g._ (Theunands of Dollare Notes to Financial Statementh Nuc! car Facility billings: (li SU5thl ARY OF SIGNIFICANT Fuel cost $ 4,996 ACCOUNTING POLIC!FC Replacement rotors 911 A. Orgaaimti<n. - Plant management information The Dnetrict has three separate divis i ons for account. system 3,284 lag purposes as figh2ws: Pipe replacement _ 34,366 Electric System Renewals and replacements _ _8_,b 67 Power Supply SysWm $32124 Nucitar Facihty I'ov.er Suppt System billings: As required by thmd Resolutions, separate records are Renewals and replacements $ 4,170 maintained ihr each division. The Electric Systert finan- " cial statements exclude the Nuclear Facility and Power These deferred charges are expectui to be amot tized Supply System, for which financial statements are pre _ as follows: 1987 - $12.3 millicn; 19E3 - $10.8 million; i sented sehrately herein. The Electric Syve n financi:1 IP39 - $6.2 million; iM) - $3.6 million; 1991 - $3.4 statements should be read in conjunction with such other mdlion. Gnancial statements. The carrying costs of the nuclear fuel advances are H. Depreciatmn, Am~;,uion and Maintenance- includal in the above ameants. The District included amortizatica of those deferred charges of $14.7 million !n Tk District records depreciation over the estimated 1986, $13.3 million in 1985, and $12.8 million in 1984 in useful life of the property. Depreciation on Utility Plar.t in power purchased expense. Serme was approximately 3.0's in each of the years 1986, 1985, and 1984. E. Unamcrtized rinancing Costs-The Dierkt hn :long-term lease agreements with 210 These (osta represent issuance expenses on aH lx, ads municipaliws Tl o lease agreements obligate the Di+ and the premium to retire the Electric System Revenue trict to make lease payments and pay for normal property ihmds,1975 Series, prior to their maturity date and are ad<htions dering the term of the lea +. The District has being amortized over the life of the tespective bonds using reconh<l orovismns for amortization of $4.1 million in the hvads outstanding method. 1986, $3h milhon m 1985, and $4.0 million in 1984. Irawd plant additions, which are fully reserved, totaled F. Nmdiud Payment R crired /br Refinancing Costs-543.0 million at ikcember dl,1986, and $39.2 million at Thb wimbursement from the Nuckar Facility was December 31.198a. for certain refinacirg ccats of the Eh ctric Syste'm in. tertain municipal leaw agreements included an obh- urred in 1968 and is being amortind over the hie of the gation requiring the Distr ct to make property additmns 1968 Revenue Ikmd issue usmg the bonds ontstanding as3ociatt*1 with the electric wrvice being provided to such method. municipalities in an amount equal to a percentage of rev- G. Cash and Investmenes-enues of the respectise leavsl systems. The District has completed negotiatiens with all but one of the municipai- M"#U"W" - - - ities u hich resulted in, among other things, the modifica. - " - - " -- tinn of the obligation to make such improvements. During C' h" '* "d ' "f """* '* Revenue F,und . $ 19,"378 $ 13,997 1986, the District paid these municipalities $736.000 which was charged to depreciation and atoortization. The Operating Fund . . . 1,949 4,2 H6 balance of $736,000 will be paid during the year 1987. Construction F unds . 48,029 48,269 The District charges maintenance and repairs,includ- C"**ercial Paper Account . 24.334 27,;102 I, #C""I # ing the cost of renewals and reptar ments of minor items - af property, to maintenaare exiwnw accounts. Renewals ne an onhngncy fund 1,M 1,'N 2 and replacements of property texclusise of minor items of General Reserve Fund . . _16,362 31.552 prolwrty, as set Ibrth abovt i are cirirged to utihty plant $: 11,618 $117,115 m counts. Upon retirement of property subject to deprecia-tion, the cost ut property is removed from the plant ac. Funds consist of $69.8 million of investment securi-counts ami charged to the reserve for depreciation, along ties and $21.8 million of casa depos;ts at Decemlwr 31, with the removal costs. net of rdvage. 1986. and $103.8 million of investment securities and
$13.3 million of ensh deposits at Dec"mber 31,1985. The C. Anon ance /he Fundu Used Dunna Com tructi.m - carrying value of mvestment securities approximates This allowance. vprewnting the cost of funds used to market.
finance constri.ction, is capitalimt as a conymnent of the Cash deposits at December 31,1986, primarily inter. cost of utility plant and is credited to interest and Other en beariag, induded approximately $16.1 rnillion which Revenues The capitalization rates for con truction fi- were covered by f deral depository ir.surance or unregis-nam ed with revenue bonds are based on the interest co< tered U.S Government and municipal securities held by of each issue less interest income. The rate ibv construc- various de positori< s. Investments at December 31, 1986, tion financed by revenues is based on a projected rata o r were in unregistered U.S. Government secunties and lorrowing. For the periods presented herein, the ra*es Federal Agency obligatious held in the District's name by vary from 6.l'i to 10Wi. the custodial banks. Dunng 1986, the District also held 22
repurchase agreements collateralized primarily with (3) LONG-TERAf DEBT AND NOTES PAYABLE: unregistered U S. Government securities and held by p-=we n. the banks. i9s8 1985 The Debt Reserve Account in the Debt Service Fund is Revenue Bonds: (Themsands of Dollars) valued semi-annually at January 1 and July 1 at the low er Eerial Bonds-of cost or market in accordance with requirements of the 2.00'1.due 1986 to 1990 .$ 1.875 $ 2,580 Elec+ric System Revenue Bond Resolution (Electric Reso. 4.75%6.309,due 1986 to 1990 . 35,575- 44,465 letion). The securities in the remaining funds are valued 4.90%6.40"r, due 1991 to 1995 34,010 34,010 at !he tower of cost or principal amount in accordance with 5.009-6.10'4, d ue 1996 to 2000 39,850 39,850 requirements of the Electric Resolution. 5.00%6.30% due 2001 to 2005 49,740 49,740 5.759 -6.40% , due 2006 to 2009 27,820 27,820 IL Dc/ erred Production Costu-Actual energy (fuel) costs in excess of those included Term Bonds, with annual sinking m the basic retes are recovered by a Production Cost Ad- fund requirements-5.10'+, due 1987 to 2002 41,000 41,000 justment (PCA) which is hilbd to all customers except non-firm and participation customers. When the basic 6.60'b due 1993 to 2003 . . 33,200 33,200 rates do not provide sufficient revenues to recover the en- 6.754, due 1991 to 1995 , 17,100 17,100 ergy costs, the excess cost is deferred. When the basic rates 7.t)0'i,due 1996 to 2005 , 57,250 57,250 . provide revenues in excess of the energy costs, the excess $337,420 $347,015 is excluded from revenues. Pres.ent District policy requires Lease Purchase Payables-that billing for the PCA he made using rates adjusted 2.00'h due 1986 to 2005 . 4,145 4,433 from time to time so that the variations in actual energy Unamortized Bond Discount . . _ (1,547) _ 1,676: ( crsts from energy revenues to be derived from the ba.ic $340,018 $30,7,72 rates are recovered by PCA billings either in the current . . Principal payments of Electric System Long-Term rate period or future rate peiiods. Debt and Notes Payable for the next five years are: 198, I.Recen ne Recognition- - $13.7 million; 1988 - $13.1 million; 1989 - $12.0 mil. Substantially all wholesale revenues are recorded in lion,1990- $12.3 million; 1991 - $ 12.7 million. - the perLxl it. which service is rendered, and, in accordance with industry practice, retail revenues are recorded in the (4) COA 1AlEP.CIAL PAPER NOTES: raonth reteil custamc rs ai e oilled. Consequeutly, revenues The District is authorized to issue up to $100 million applicable 'o service rendered to tetail customers from the of commercial paper notes. A credit agreement is main-peried co /und by the last billing in a year to the end of the tained with a bank to support the sale of the commercial yrar are not recorded as revenues until the following year, paper notes. This credit agreement expires in December, (21 RATES: 1989. The effective interest rates en outstanding notes for 1986 and 1985 were 4.84 and 5.29 respectively. The Dis-The District desians its wholesale and retail chctric trict expects to repay $19.3 million of commercial paper serse rates to cover cost of service, including; 11 operat- notes in 1987, irm expt nses other than depre iation,2) debt wrvice, and The proceeds of this issue are being used (I) to finance
- 3) certain capital additiora In the event the District's a portion of the costs relating to a plant management in-rates for w holesale and retait service result in a surplus or formation system, repairs and replatement of piping, and deficiency m net revenues dging a rate period, such sur- certain other renewals and replacements of the Nuclear plus c deficiency is taken into account in projecting esti-Facility,(2) to finance certain renewals and replacements raated revenue requirements for future rate periods. The of the Power Sopply System, and (3) for other lawful pur-following tabk illustrates the effect of these adjustments pws of the District.
in revenue reqsements on the Statements of Revenues and Expenses, The notes are anticipated to be retired from repay-ment of the Advance to the Power Supply System and Adjustme_nte in Itevenue itemairementa from Electric System revenues. w,a im - YY - ' w , (5) LONG-TERAI OBLIGATIONS: g,,,a The District has an agreement for the purchase of the amon. .r n. p=> entire output of a 100 AlW steam electric generating plant Surphis or t Deficit) through 1991. Under this agreement, the District must in Rate Period .
$(7.;16 $4 7.5 p $( 12.21 (with limited exceptions) make minimum payments Adjustmeni in monthly. The annual aggregate amount of such required Subnequent kate Periods: payments will be $968,000, less an amount associated 1981-1985 , 2.9 - -
with ? he principal amount ofoutstanding htmds which will 1986-1987 .. , ... 4.4 14.6 4.3 he retired from existing reserve funds of the owner, for-1988-1989 iProjated t - (7.1) 7.9 each of the years 1987 through 1991. In addition, the Dis. As provided in the Electric Remlution, the District trict is wquired to pay the variable operating expenses of covenants to charge rates for electric and other services su the pla-t. The District s total payments under the agree-that revenues will be sufficient to pay annual operating ment were $3.5 milhon m 1986, $2.7 mdhon m 1985, and ) expemes, including Nuclear Facility nnd Power Supply 53.0 taillion in 1984. FyNem charges, debt service and other charres payable 16) RETIREAIENT PLAN AND POSTRETIREAIENT out of lhetric System revenues. The 1987 base rates for ilENEFITS: firm wholesah and retail parvice are exix cted to increase The District has a retirement income plan coveringits ehttric revenue s by approximately $510,000 over 1986 regular full-time employees, substantie'ly all of whom have res enues, elected to participate. Employee's contributions to the 23
1 - l l l plan are based on salary, and the District's contributions NUColt were unfair, unreasonable and discriminatory l l _aro allocated to each employee's trust account based on the and further denied that NUCOR had been damaged as ; employee's contributicm to the plan. The plan provides for alleged, and asserted various alTirmative defenses. retirement income equal to the' total of the employee's investigation and discovery indicate that revenue trust account, including trust earmngs. The District's con- collected by the District from the HTS-2 rateclass, ofwhich tribut;on was $t.8 million for 1986, $4.5 million for 1985, N UCOB is a me mber, fmm September l .1973, to December and $4.2 million for 1984. 31,1986, exceeded the revenue requirements by $1,527,301.
'lle District also provides certain health care, acci- It is contemplated that this surplus will be adjusted by a l dent and life insurance benefits for retired employees- decrease in the HTS-2 electric rate schedule for service Substantially all of the District's retired emplayees are provided from March 1,1987, through December 31.1987, eligible for such benefits. The cost of providing these bene- The ma tter is set for trial commencing April 6,1987, in the fits was $761,000 for 1986, $412,000 for 1985, and Urited States Federal District Court in Omaha, Nebraska.
$651,000 for 19&1.
(9) CAPITAL ADDITIONS: ! (7) DEFEltitED COMPENSATION PLAN: The -1987 construction plan for the Electric System The District ofTers its employees a deferred compensa- includes author zation for estimated expenditures of $28.8 tion plan created in accordance with Internal itevenue million for 1987. These expenditures will be funded from Code Section 457. All amounts of compensation derened revenues and other available funds. l . under the plan, all property and rights ' purchased with ! such amounts,'und all income attributable to such 410) CONTINGENCIES: The Environtrental hotection Agency (EPA) has l amounts, property, or rights are tuntil made available to the employee or other beneficiaryi solely the property and n tified the District of a potential responsibilu) stem. rights of the District (without being restricted to the ing from ,ts i having arranged for the transpt rt, treat. provisions of benefits under the plani, subject only to the ment or disposal of hazardous substances at, the Martha claims of the District's general creditors. in the past, the C. Rose Chemicals, Inc. site m Halden, Missouri, EPA plan assels have been used ihr no purpose other than to n tified the District that public funds have been spent by pay benents.The District believes it is unhkely that it will EPA to investigate and rcspond to alleged releases and use the am,ets to satisfy the claims of genes al creditors in threatened releases of hazardous substances at the site. the future. The plan is administered by The Equitabie L;fe EPA also notined the District that it may be a responsible Assurance Society of the United States, Party, and that responsible parties may be legally obli. The District has reconh d the assets of its deferred gated for response actions and costs incurrod in connection compenstion plan and the corresinnding liability to re, with the site. While the potential legal liabiinies of the 11ect its Oduciary resinnsibility under the plan at De. District for costs in connection with the site may include cember 31,1986. Comparable amounb have also been re- the total cost of response actions related to the site at a llected in the 19M financial statements. This balance cost of up to $30 million or more, the District believes that sheet prmentation has no effect on the results of opera. its probable liabihty is much lef s. If the District's liability tions or accumulated net revenues of the District, for such costs were determined on the basis of the total quantity of materials sent by the District to the Rose (8i LITIGATION: Chemicals site, and if the entire cost of actions at the site On August 14, 1985, NUColt Corporation (NUCOR), were allocated on that bas;s among those who sent ma-a large industrial customer, filed a lawsuit in tir United terials to the site, the District believes its relative liability States District Court of NeLraska alleging overcharges for such costs would nct exceed 34 to 64 of the total costi 1 from August 1,1972, to ,Ianuary 1,1980, in an unde- A provision has not been inade in the financial statements tertnined amourd and $10 million from ,lanuary,1980, because it is not yet determinable ~ what the District's l through December,1984. The District's answer, among ultiinate liability, if any, will be. I other things. denied that the District's rates charged ' 24 i l
E M Nebraska Public Power District POWER SUPPLY SYSTEM Report of Independent Public Accountants To the Board of Directors Nebraska Eublic Power District: We have examined the special-purpme statements of assets and liabilities of the Power Supply System of Nebraska Public Power District 'a public corporation and political subdivision of the State of Nebraska) as of December 31,1986 and 1985, and the related special-purpose statements of revenues and costs for each of the three years in the pericd ended December 31,1986. Our examinations were raade in accordance with generally accepted auditing standards and, accordingly, included such tests of the accounting records ard such other auditing procedures as we considered necessary in the circumstances. The special-parpose financial statements referred to above have been prepared for the purpose of complying with, and on the basis of, accounting requirements specified in the Power Supply System Revenue Bond Resolution I adopted by the District on September 29,1972, as supplemented, securing the revenue lxmds issued thereunder. As described in Note 1(B), these requirements differ from generally accepted accounting principles. l Accordingly, the special-purpose financial stateinents are not intended to present and do not present fairly the financial position, results of operations, i and changes in financial position of the Power Supply System of Nebraska d f Public Power District in conformity with generally accepted accounting I principles. t in our opinion, however, the aforementioned special purpose financial L . statements of the Power Supply System of Nebraska Public Power District ! are presented fairly pursuant to the requirements of the Power Supply ' System Revenue Bond Hosolution dewribed in Note 1(B), cpplied in a consistent manner. Coopers & Lybrand 600 Womimen Tower Omaha, Nebraska 68102 March 6,1987. 25
Nebraska Public Power District POWER SUPPLY SYSTEM Statements of Assets and Liabilities December 31,1986 and 1985 Prepared Pursuant to Requirements of the Power Supply System Revenue Bond Resolution ma - ms' ASSETS inou nd or noti.e.> Utility Plant, at Cost .. ... . . . . . . . . . . . . . . . . . . . . . . . . . . . . $761,634 ' $759,856 ' less-Reserve for depreciation (Note 1) .. .. .... ....... ... ........ 63,758 52,293 ' Amounts funded from revenue (Note 1) . ........ ...... ..... .. 13,845 17,076
$684,031 $690,487 Prepaid Capital Costs (Note 3) . . ..... ......... ... ..... . . . . . . .$ 69,414 $ 57,526 Cash and Iavestments (Note 1):
Debt reserve account . .... ...... ...... .. . . . . . . . . . . . . . . . . . . . . $ 58,5 59 $ 62,262 Reserve and contingency fund . . . . ... . . .... ...... ..... . .8,510 11,471 Additions and improvements account . ....... ..... ... ..... . ... 3,027 2,927 Construction funds . . . ....... .. .. .. ... .............. ....... 76,627 . 71,509 Revenue fund . . . . . . . .. . . .. ......... .. ........ ........ . 2,424 166 Operating fund . . . . . . . . .. . ... . ........................ 15,723 12,462 General reserve fund . . . .. . ........... ......... ..... .. 19,407 18,442
$184,277 $179,239 Accounts Receivable . . . . . .. .. . .. .. ..... ... ....... .......$ 361 - $ 306 Interest Receivable . . .. . .. .................. ...... . .... ...$ 2,569 ' $ _ 3,905 Fuel Inventory, at average cost . . . . . ......, .. .... .. . .... ... . . .$ 19,2_08 . $ 16,532 Deferred Charges and Other Assets . . . . .. ........... .
.........$_ 507 $ 638
$960,387 $948,633
' LIABILITIES Revenue Bonds (Note .'3): Serial Bonds-4.909 8.009, due 1986 to 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 57.74 0 $ 68,730 5.50%9.00'1, due 1991 to 1995 . ..... ... ...................... 92.545 90,615 l 5.70%9.609, due 1996 to 2000 . . .... ......... . .. ......... ... 75,240 72,980 6.00%9.80'1, due 2001 to 2005 .......... .. ....... ........., 5,405' 12,210 9.80%10.009, due 2006 to 2010 . . . . . . ...... . .... .. ........... - 10,775 10.00%10.1259, due 2011 to 2015 . . . . .................... ..... - 17,145 10.1259, due 2016 to 2019. ...., .... .......... .......... ..... - 20,830 Term Bonds, with annual sinking l'and requiremente-i 5.809, due 195?8 to 2012 . . . . . . . . . . . .................. . . . . . . . . 168,930 168,930 6.125'1, due 1999 to 2016 . . . . ...... ....... . .. ...... . .. 239,635 239,635-6.759, due 1999 to 2001 . ..... .. .. ......... . ...... ...... 23,025 23,025 : l 6.909 , d ue 2002 t o 2008 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .' , . . . 75/115 75,345 7.10'1, d ue 2009 to 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 129,005 129,005 7.3759. due 2001 to 2006 . . . . ................... .............. 11.595 - 7.509 , d ue 2007 to 2019 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ... 50,320
$328,765 $199,215 Advante from Electric System . .. . ... . .... .......... ........... 6,100 6,100 Accounts Payable and Other Accrued Liat ilitice . . . . . . . . ........ ..... . 10,891- 6,72'1 Operaung Reserves (Note 1) . . . . ........ . .. . ... ...... .. . . . . . ._ J4f11 6,585
$360,387 ' $3t8,633 The accompertying not.s to financial sta*ements are an integmi par 1 of these statements.
26
t Nebraska Public Power District
- l. ' POWER SUPPLY SYSTEM Statements of itevenues and Costs -
for each of the Three Years in the Period Ended December 31,1986
- Prepared Pursuant to Itequirements of the Power Supply System itevenue Bond Resolution l 19s6 _ 19M5 _ 19 4 (Thousandsof Dollars)
Itevenues (Notes 1 and 2):
$140,696 $133,104 $131,785 j Sales to the Electric System . . . . . . . . . . . . . . . . .. . . . .
- Investment and other income . . . . . . . .s. . .. .. . .... . . 10,736 20,644 11,129 Total rever.nes . . . . . . .. ... .... . . . . . . . .$ 151.,432 $153,748. $1gJ
; Coste Operating ergasee-4 Production-1 Fuel...............,................... . . . . . . $ 52,912 $ 60,850 '$ 60,850 ! Operution au l maintenance (Note 3) .... . . . . ......... 18,880 16,241 14,407 Provisons Dr operating reserves (. Note 1) . . . . . . . ....... 4,044 3,247 1,384
) 3,117 2,839 2,702 General and administrative . . . . . . . .... . .. . ..... . . . . l Instaance . . . . . . . . . . . . . ................. . . 1,070 ___ 073 828 i S 80,023 $ 84,150 $ 80,171 Det:t service-Principal (Nota D . . . . . . . . . . . .,. . .. ...,...... . 12,095 11.725 10,850 - l Interest... . . . . . . . . . . . . . . .. . . . ....... . . . . J 314 57,873 J 51,897, l Total costs . . . . . ... ....... . . . . . . .$151,432 $153,74,8 --
;-$1 a _42,914 n 1
1 The accompanying notes to fin : ncial sta.*ct.~ients are an integm! psrt cf these s' itements. I i i
- Nebraska Public Power District
""' f '*i"'Y' f"' " h 'c h fi """"I "'" ** "'" "'" "'
+ eemed wperately herem. The Power Supply System fi. !- nancm! statemonu should % '.ead in cordunctian with POWER SUPPLY SYSTEM such cf n r Gnancial statements. j IL Basis ofAccounting-Itevenues are rec gnized and 'Alled at ,o amount
! Notes to Financi,tl Statement.s (qual to costs as deGnal by the Pow er hupply System llev-i 2 (D SIJMM AltY OF SIGNfMC \NT c3 u+ 11ond liesolution (Pawer Supply itesolutioW which l N'CbONTWG Pol)CIES: include operating eq>enses (excluding depreciatim.,, and A. Organizatme - debt scryice on the revenue bonds, less invevanent in 1 The District hu three separate divisior.s for account. come. Itevenues are cor p'ited and hilled so that ru equity I ing pursuses as follows: is ,ccumulated in the Pos.r f.upply System.
2 Electric System Itwenuts and costs us dermed by the Power Surely Power supply System itesolution difier in the followi ig respects from generally Nuclear Facility accepted accounting principles:
- As requiral by liond itesolutions, se parate recorda are i D Amortization of the debt principal is included ;
mainteined fi. each division. The Power Supply Syacra as a cost b 'he accontpanying Utatements ofitevenues
; financial statemente ercl.me the I&ctric System and Nu- and Costs t.4" Debt service.P.-incipal".
t 27 44
-',-+e ,-m+.4 ,.---i-c i=&,.-..eev-.r1- % g-* w +%- --.- - - - 1&-+ -,, u, - . - - > ,m.v-,-- 3 = ,yytv.--gr --- w s e e e --* -rw 9e pg + m m ~ .r=----eem--.-wea--w =.e-we- r
Depreciation is not recorded es a cost. liad the sufricient to pay operating expenses, aggregatemiebt ser-D strict prov;ded straight-line depreciation over a vice on the Povtar Supply System hevenue Bonds, t 40-year life rather than includ:ag a.nortization of amounts to be paid into the Debt Reserve Account and i' debt principal over the same period, ccsta wouki havi - ~ Reserve and Contingency led, nad all other charges or increased $6.6 million in'1986, $6.5 millim in 1985, liens payable out of revenues of the Power Supply System. and $6.3 million in 1984. AccumMated detrcstion . The debt service payments of the Power Supply System through December 31, 1986,' wwld have inew eed Revenue Bonds are $71.9 million per year through 1991 costa approximately $49.6 rrillior*. The reserve for de- and principal payments, as a component at debt service i
.preciation shown on the Statements of Assets and payments, are $1.i.3 million, $14.0 million, $14.8 million, Liabilities was provided by recording amounts equal $15.6 million, and 3!6.5 million for each of the years 1937 to repayment of debt. Upon retiivment cf property through 1991 respctively.
, subject to depreciation, the cost o' property is removed ' from plant accounts and charged to the eserve for (3) PREPAfD CAPITA L COSTS: in Mar-h,1986, the District isk,ued $76,335,000 of depreciation, along wth the remev.J cocts, net of Power Supply System Revenue Bonds,1986 Seties, for the -
"" "K' principM purpow of advance refunding the outstanding (2) B'illing.4 to pro # capital for renewals and $61,680,000 0f Power Supply System Revenue Bonds,10%
replacements of piapeu e and capital additions are in- Series. T.he 1985 Series Revenue Bonds were issued for the cluded in the accompuving statcments as" Operating principal purpose of prepaying the capital costs associatea ) Reserves' and Provisions %r operatmg reserves", with the purchase ofib capacity of the Kingslev Project, a Under generally accepted accounting pirinciples, capi- 50 MW hydroelectric generating facility owred and oper- , tal additions and piovisians for renewals and re- ated by The Central Nebraska Public Power and irriga-l placements are not expenses but 4 wlusive of minor tien District! Centrad. The prepayment is being arnurtized items of pmperty) are charged to tsility plant. Re- to expense uvor the life of the 1986 Series Revenue Ends. newals and replacements of property and capital The 1986 Scies Revenue Bonds were issued at an additions funded from revenues are fully reserred. average interer t rate (.f 7.439 to advance refund the 1985 (3) Interest irrome on construction fund inseo Series Revenue Bonds issued at un average interest rate ments is capitalized althcagh the applicable projects of 10.084. The proceeds of the 1986 Honds were placed in have been placed in service. Linder generally accepted an irrevocable trust account with an escrow agent to pro-accounting principles, revenues would have increased vide fo: all future debt service payments on the 1985
$5 0 million in 1986, $7.7 million in 1985, and $6.7 honds. Accordingly, the trust account and the defcased imilion in 19Al Such income would be inclo4d in 1985 Bonds are not included in the District's financial income of the period under generalh accepted ac- statenents. The advance refunding resulted in tN ac-count mg prmer,ples. = counting recognition of a loss of $11,655,000 during 1986 C Utility Mant which hva been recorded us a prepaid capital cost. The Intelert exmnse, less interest earned on investment issuance of the refunding debt at interest rates lower than rcurition, all fm' aneir.g costs and all other tosts related to previous rates will cause aggregate debt service payments t.mrtruction projects are capitalized. to ba reduced by approximately $15,700,000. The present i value savings approximates $6,100,000 D.Cas!r and /nrcstments- Under terms of tite Kingsley Project Construction.
Funds consist of $1h1.5 million of in,estment securi. . Operation and Power Purchase Agreement, Central ties and $2.8 mdlion of cash deposits at December 31: makes available all of the production of the Kingsley Proj. 1."e6, and $178.6 million of mvestment securities and $" ect and the District pays all coats of operating and main-nilNn of cash deposits at December 3i.1985. The carry- taining the facility plus a charge based on the amount of mg ulue ofinvestnunt securities approximat; a market. energy delivered to the District. Costs of S676,000 in 1986 Cash 'eposits, primarily interest hearing, at De- are included in " Production-Operation and maintenance
- rs mber 31,1986, were substantially covered by federal de-pmtory irwurance or mregivered U.S. Governna nt and (4) CAPITAL ADDITIONS:
municipal securities held by vs *ious depositories. Invest- The 1987 construction plan for the Ibwer Sepply Sys-ments at Decemtier 31,1986, were in unreg'stered U.S. tem includes authorization for estimated expenditures of r Government ecurities and Federal Agency obligations $2.1 million for 1987. Thu,e expenditures will be billed to held in the District's name by Ibe custorbal banks. During the Ehctric System as " Provisions for operating reserves" 19thi the Dist>ict also held repurcha,e agreements col. nn the basis ofestimated cash flow requirements. lateralized pr.marily with i'nregistered U.S. Government natitics and held by the banks. The Debt Reserve Account in the Debt Service Fund and the Hestve Account in the Reserve and Contingency Fund are valued semi-annually at January I and July 1 at
*he lower *f cost or market in accoraance with require-ments orthe Power St pply Resdution. Gains or losses on valuations are incla4d in investment income. The mcuri-ties in the remaimng for.ds are valued at the lowe r 6fcoat or prir.cipal amount in acn.rdance .vith remirements of the Ibwer Supply Hasolutie n.
' 12) RA TE COVENANT. The District is required under the Power Supph Reso-lution to charr rates for ele (tr:e powerand energy from the Po ver iply System so that revenues will be at least 28
- e e
4 e Nebraska Public Power District i NUCLEAR FACILITY Peport ofIndependent Public Accountants i Tc.the Board of Directors ( Nebraska Put.lic Power District: We have examined the special-purpose statements of assets and liabilities of the Nuclear Facility of Nebraska Pubhc Power District (a public l corporation and political subdivisica of the State ot Nebraska) as of December 31.1986 and 1985, and th'e related special-purpose statements of revenues and costs for each of the t}:ree years in the period ended December 31,1986. Our examinaticns were made in accordance with generally accepted auditing standards nad, accordingly, included such tests of the accounting records and . [' ! such other auditing procedures as we considered necessary in the ' circumstances. Ylm igeml-purpose financial statements referred to above have been l prepared fbr the purpose of complying with, and on the basis of, accounting i requirements specified in the Nuclear Facihty 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 accounting principles. Accordingly, the sper:al-purpose financial statements are not intended to pcesent. and do not present fairly the financial position, results of operations, and citanges in financial position of the Nt. clear Facility of Nehmska Puuic Power District in confbrmity with generally accepted accounting principles. In our opinion, however, the aforerentioned special purpose financial statements of the Nuclear Facility of Nebraska Public Power Distrit.t are presented fairly pursuant to the reqt.irements of the Nuclear Fa.cility Revenue Bond Resolution described in Lte 1(ID, applied in a consistent
'na r.ner.
Coopers & Lybrand 600 Woodmen Tower Omaha, Nebraska 08102 March 6,1987.
- 29
'le Nebraska Public Power District NUCLEAR FACILITY . -
Statements of Assets and Liabilities December 31,1986 and 1985-Prepared Pursuant to Requirements of the , Nuclear Facility Revenue Hond Resolution 19N8 1985 ASSETS iThou na. or ooitar., Utility Plant, at Cost . . . . . . . ............... ... .... ...., . . . . $545,697 .$533,248 Less-Reserve for depreciation (Note 1) . . . . . . . . . ....... ......... .... 110,453 97,744 Amounts funded froia revenue (Note 1) . . . . . . . . . . . . . . . . . . . . . . . . . : 136. 518 124,903
$298,726. . $310,601 Nuclear Fuel-Net of Amortization (Note 1) . . . . . . . . . . - . . . . . . . . . . . . . . . . $ 107,3 2 6 $117,761 -
Cash and Investmenta (Note 1): Debt reserve account . . . ...... . .... .... ... . .. .... . . .$ 28,596 $ 28,322 Reserve and contingency fund . . . . . . . . . . . . . ............ . ....... 9,861 9,608 Additions and improvements account ....................... ....... . 11,149 8,522 Construction fund . . . . . . .... ......... . .... .. ....... ... 14,354 14,512 Fuel reserve account . . . . . .... .... ....... ... .................. 25,397 10,443 Fuel disposal fund (Note 1). . . . . . . . . . . . . . . . . . . . ........ ... ........ 2.889 2,546 Operating fund . . . . . . . . . . . . . . . . . ........ . ...... . ............. 2.838 5,915 Revenue fund . . . . . . . . . ..................... ...... ...... .. 453' 803 Decommissioning fund (Note 4) ... . ........ ....... .... ......... 6,35_6 3,790
$101,893 $ 84,461-Accounts Receivable . . . . . . . ...... .......... ... .... .. . . . . . . . . $ 6,254 $ 6,667 Interest Receivable . . . . . . . . . . ......... . ....... .............$ 1,435 $ 1,8_7_0 Deferred Charges and Other Assets . ...... . .......................~.$ 1,826 $ _- 2,606
$517,460 $523,966 LIAllll.ITIES Revenue Ilonds:
Serial Bonds-4.80'i-7.50'l , due 1986 to 1990 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .$ 36,245 $ 49,090 6.00'1 8.80'1, due 1991 to 1995 . . . . . . . . . . .........,.. ... ......... 24,020 24,020 7.375'l-9.20'f . due 1996 to 2003 . . . . . . . . . . . ............ ... ....... 26,600 26,600 Term Bonds, with annual sinking fund requirements-5.10"r . d ue 1987 to 2002 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 155,000 155,000 6.30'4 , d u e 1993 to 2003 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 68,430 68,430 6.60ri , due 1992 to 2003 . . . . . . . . . .......... ........... ......... 67,200 67,20_0
$377,495 $390,340 Ogerating Reserves (Note 1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12 3,0 3 9 116,598 Accounts Payable and Other Accrued Liabilities (Note 1) . . . . . . . . . . . . . . . . . ._16,926 _11028-
$517 4A 60 -- - ~,966
$523 -
The accompanying notes to financial staternents are an integml part of these staternents. 30
. Nebraska Public Power District NUCLEAR FACILITY Statements of flevenues and Costs for each of the Three Years in the Period Ended December 31,1986 Prepared Pursuant to lle<1uirements of the Nuclear Facility Itevenue Bond Resolution 19d6 19M5 1944 (Thouwands of Dollars) .
Revenues (Notes 1 and 2): , Sales-Electric System . . . . ...... . ... . ... . . . . .$ 60,773 $ 60,479 $ 66,114 lowa Power and Light Company . .... . .. .. ... 60,775 60,477 66,116 Investment income . . . . . .. . . ...... 7,576 12,590 _13J40 i Total revenues . .. .... ....... .. . . .$129,124 $133,5J6 [1,45,579- ) Costs: Operating expenses-Production-Fuel.... .. . .. ... . .. . . . ..... .$ 2G,371. $ 7,177 $ 21,876 Operation and maintenance . . . . . ... .. ...... 34,375 31,783 23,620
- Provisions (br operating reserves (Note 1) . ..... . .... 18,446 49,870 52,477 Technical and administrative .. . . .. . ...... ... 10,278 5,506 7,748 Insurance . . . ......... . . . ..... ..... . 3,439 3,0_16 _3,668
$ 92,009 $ 97,352 $109,389 Debt service-Principal (Note 1) . . .. . ..... . . . ..... 12,845 12,185 11,575 Interest. . ... . . ... . . ........ . . . . . . . ._23y0 24,009 2 24,606 Total costs . . .... .. ... ..... . . . . . . . $ i 2934 193g6 ,$yg,rgo The amunpsnying notes to financhil statemenu are an integralpart of these statements, r
i 31
Nebraska Public Power District (3) Interest income on construction fund invest-ments is capitalimi although the facility has been NUCLEAR FACILITY placed in service. Under generally accepted account- , ing princip!?s, revenues would have increased $1.0 { million in 1966, $1.2 million m 1985, and $1.2 million Notes to Financial Statements in 1984. Such income would be included in income of ) the period under generally accepted accounting t t)
SUMMARY
OF SIGNIFICANT Principle 8-ACCOUNTING POL.ICIES: C. Nuclear Fueb-A. Organization - Nuclear fuel in the reactor is being amortized on the The District has three separate divisions fir account" bis of energy produced as a percentage of total energy ing purpn.cs as follows: expected to be produced. cts Sys m The District has entered into contracts for various
" " nuclear fuel c mponents for fuel loadings as follows:
'u i\i As equired by Bond Itesolutions, sepaiate records are Nuci r ru i wdI'r@uT nt.
maintained Ihr each division. The Nuclear Facility finan. E*"" " "!
~""M * " ^"P" 9 L cial statetaents exclude the Electric System and Power Uranimum Concentrates . .Various 1989(Esta Supply System, for which financial statements are pre. Conversion . . . Allied Corp. 1989 sented separately herein. The Nuclear Facility financial Enrichment . . . . U.S. Dept. of statements should he read in conjunction with such other Energy 2011 f mancml statements. Fabrication . General Electric 1991 IL Hasis of Acmunting-llevenues are recognized and billed at an amount Fees for dispo<al of fuel in the reactor are being equal to costs as defined by the Nuclear Facility llevenue provided as part of the fuel cost and collected through Hond Resolution (Nuclear Resolutmn) which include revenues of the Nuclear Facility. Some of these fees may operating expenses (excluding depreciationi, and debt ser, ultimately be the respmsibility of General Electric Com-vice on the revenue bonds, less investment income. Rese. pany (GE) under the nuclear fuel supply contract for the nues are computed and billed so that no equity is accumu. initial fuel for the Nuclear Facility.
lated in the Nuclear Facility- The Distr;ct and GE have entered into an agreement Revenues and costs as denned by the Nuclear Resolu. wtting out certain rights and responsibilities relating to tion dilTer in the following respects from generally ac. the shipment from Cooper Nuclear Station to Morris,11-cepted accounting principles: linois, of spent fuel associated with the initial fuel supplied by GE under the nuclear fuel supply contract. f11 Amortization of the debt principal is included The imtial shipment of spent fuel was accomplished in as a cost in t he accompanying Statements of Hevenues August,1984. Each party has a full reservatmn of rights and Costs as " Debt service-Principal" with respect to buyback payments, all shared costs, and Depreciation is not recorded as a cost. Ilad the , ultimate respimsibility for disposition ortho rpent fuel and District provided straight-line depreciation over a attendant costs. Huyback payments of $6A million for 30-year life rather than including amortization of 1986 and 1985 have been included m Accounts Payable debt principal over the same period, costs would have nml Other Accrued I,iabilities . increased $.8 million in 1986 $112 million in 1985, and $1.8 million in 1941. Accumulated depreciation D. Cash amilnrestments-through December 31, 1986, would have increased Fund 3 consist of $101.0 million of investment securi-costs approximately $ l&5 million. The reserve for de. ties and $.9 million of cash deposits at December 31,1986, preciation shown on the Statements of Assets and and $83A million of investment securities and $1.1 mil-1,iabihties was provided by recording amounts equal lion of cash deposits at December 31,1985. The carrying to repayment of debt. Upm retirement of property value of investment securities approximates market. subject to depreciation, the cost of property is removed Cash deposits, primarily interest hearing, at De-from plant accounts and charged to the re erve for cember 31,1986, were covered by federal depository insur-deprechttion, along with the removal costs, net ance or unregistered U.S. Government and municipal of salvage. securities held by various depositories. Investments at (2) thilings to provide capital for renewals and December 31, 1986, were in unregistered U.S. Govern-replacements of property, capital additions, and nu. ment securities and hxleral Agency obligations held in clear fuel are includnl in the accompanying state. the District's name by the custodial banks. During 1986, ments as " Operating Reserves" and " Provisions for the District also held repurchase agreements collater-operating rewrves". Under generally accepted ac- alized primarily with unregistered U.S. Government counting principles, capital additions and provisions securities and held by the banks. for renewals and replacements are not expensen but The Debt Reserve Account in the Debt Service Fund (exclusive of minor items of property) are chargni to and the Reserve Account in the Reserve and Contingency utility plant Provisions for working capital for nu- Fund are valued semi annually at January I and July I at clear fuel are not expenses under generally accepted the lower of cost or market in accordance with require-accounting principles until the fuel is used. Henewals ments of the Nudear Resolution. Unins or Imses on valua. and replacements of property and capital additions tions are included in investment income. The securities in funded frem revenues are fully reserved. the remaining fund.4 are valued at the lower of cost or 32
I ! principal amount in accordance with requirements of the tain reserve fi.nds established under the Nuclear Resolu-l N uclear Itesolution. tion; and (4) surplus funds derived from the ow nership and
- 42) RATE COVENANT; operation of the Nuclear Facility. The District continues The District is required uader the Nuclear Resolution to review such costs and methods of funding as a result of to charge rates for electric power and energy from the changing conditions and requirements for Nuclear Facility so that revenues will be at least sufUcient decommissioning.
to pay operating expenses, aggregate debt service on the (5) CAPITAL ADDITIONS: Nuclear Facility Revenue Bonds, amounts to be paid into The 1987 construction plan for the Nuclear Facility j the Debt Reserve Account and Reserve and Contingency includes authorization for estimated exrenditures of $22.4 l Fund, and all other charges or tiens payable out of rev- million for 1987. These expenditures will be billed to the j enues of the Nuclear Facility.The debt service payments participants as " Provisions for operating reserves" on the
- of the Nuclear Facihty Revenue Honds are $36.3 million basis of estimated cash flow requirements.
per year through 1991 and principal payments, as a com-I pment of debt wrvice payments, are $13.5 million, $18 3 @ OPERATIONS: ,
, million, $15.1 million, $16.0 million, and $16.9 million for The District and Westmghouse are prescutly engaged each of the yeara 1987 through 1991 respectively. in negotiations with respect to a settlement for damages to the turbine-generator and extra costs incurred as a re-j 131 POWER SALES CONTRACTS: sult of a plant shutdown occurring subsequent to a mainte-t Under terms of a power sales contract with Iowa nance overhaut of the turbine-generator by Westinghouse.
i Power and Light Company (lawa Powert the District towa Pc ser and Linccin have requested that the Di3trict l makes available one-half of the production of the Coer study the recovery of cemsequential damages from West-1 Nuclear Station to lowa Power with the balance availvble inghouse resulting fnun the plant e hutdown. In addition.
to the District's Eh etric System. Iowa Power and the Dis- Lincoln has submitted a claim to 'he District of $520,289 l trict's Ehctric System each pay a prop >rtionate share of for the excess cost of replacement energy as a result of the j the nuclear fuel costs (based on energy actually dehvered t plant 3hutdown.
plus one. half of all other costs of the f acility.
i7s CONTINGENCIES:
j The District has also agreed to make available' Undu tb provisons of the Federal Price-Anderson through its Ehstric System,12% of the output of the Act, the District and all other licenad nuclear p>wer toop r Nuclear Station to the City of Lmcoln !Lmcolnh plant operators couhl each he assened for claims in i il PLANT DECO.\lMISSIONING COSTS: amounts up to $5.0 million per year per unit owned in ihe The District has estimated the cost of Smding the event of aaf nuclear incident inulving any licen3ed fa-eventual decommissioning of Cooper Nuclear Station. It is cility m the nation with a maxirnum of $10.0 million per expwted that the costa of decommisioning will h funded sear per unit owned in the ever.t of more than one incident.
from til revenues develop d by a compment induded in Iowa Power would be liable to the District for oneAalf of i lirm wholesale and rehul rat < s of the Ehrtric System, such assessment ur ter the Power Sales Contract.To satis-
! including, revenues from Lincoln for its purcha3e of power ry .he obligation, the District bag obtained a $5.0 milh m j and energy from Cooper Nuclear Station; (2p retenues hne of credit and towa Power has demonstrated its L.
from lowa Power, pursuant to its cemtract for the purchase nancial mtegrity and re.9%sibility for $5 0 milhon 5 j of power and energy fnun Cooper Nuclear Station:(3i cer-1 1 j f ) > 4 1 i i I I j !):1 i i
re W
----.-_-..,_ m,.
-- j SOU
-, .. , _ , c. .. T H DAK00
', f ) ,
i
.j' l ,.e.,,,,
1 M[ v - .h Ia i 2
/ \ -
f 4 ce q l DA W E 'S i i f j . I b ij ' f' l l o\ Sloux g f/) b - - -- 7I I SHER 80AN _ C H E R~ R y
~
l i l e j,
% s y, b o+
A . [s j j
,[
i j . g 90a 001 7E ' l,
,i
_j g -fZ, g ,e {e w ,] t[~~--~ - r-~ l g,,, _________d. R ANT HOOKER
, , e # , 7Loy as f 'g (
_e Q QS B Lyr a% f ' [m _] . r.,.e
*=="+4 '
'A.
' .g I
f r G R0EN l l
. _7 _ __ l__
u o R RI L L
, I l' ' ' *
..... j j
*s, . , .' i AR I HUR '
S 4 N. .N ( R. ~' ' . , - 4*n. 4- - & __ _,...
,,..,_,,e McPHERS0N l L0 GAN I'
r v. i m. e (9
, g ,
p e, ,
....e
-. r - u
{ l I =~~ '% .,!, # [ 7 IIIH ' l f
' N .*~^ %Mip p{ ( T[-~U f[ 'j
'~
. .
- w.m LINC0LN
~~
KiMBALL CHt yyg ' ~ K.
.~ _'^ _ * ,f _,, , . , l
- - - - - . - i
*g ,a. - , -
,. O p.
._,_ es 7. 7'ft.. - . , n , r. .? . . ,";'. y ;*,.4w.g.
I,,.., CCLOMAOo P "' l r o. e " '
'; ^*
0, A: LEGEND
~
d,,, I b S
- _1L'if.1. 3*rt oera wt Att stings. E.!? -f
_ to m u ew av
~ '
(~% ~ ~~'f
-- - - - +, \ - - -- .
i.-
... ., .........- a- f q
i.e ,, -
- /C H ws A s [
r HAYES
- fM ? PL A.'*TS *'i '.B_H5_ _
w_ FR0N7iER !
.m a $ -
.- e e , yt , v'r.
e osi.s r e di (4g gf L ) i,..,,,., .
%-. .._,,,j .g"A;-l
, , , . ' "l
. r u..... , r a l ~ ~ ' ~ '- - ~
- 3 ,
l muetsa. ,m f l * - wmtm o 0UNOY j - - FU
.Se nig *
.e
- 4. ee e e.ea. sees ... 'h jREO WiLL0W l
=*ro = ,4 4 e . co. o .e inw c
*a * *: ==3 HlTCHC0CK, -!
tree e te m e e e i e e. c p I open o.e ne p ee.ee oe,w =u oe .e - .-
~* l
- tapa e e,ven a ee peces sememiessessee
#$a e RWel fleeh eaeet.s Admuestere.en i Poe.tetese of ewei .ievoes ' .) - v ' to W4FP e W.ateve6 Sete Peep Ptegeef C 15 e Celt 0P44 Ofebree.4 Ps.4pS P et e#4 9t:gehen deelrigt (Mg og patier.ge}
N4 h ?
- he.es.Se G 4 7 L met Leees# Pwehoese fe h*PO j 0?>f 4 e Feenneen escoe be m.m .eenaNo and e#6ee se onese i
%*. # Iecidates sont of f ese . Gest T=pesie =es le 4
x +> Y $ l I s
EI.ECTRIC GENERATION AND TRANSMISSION [ go;, ; \ i FACILITIES lA PAHA fK >
\ '
's- \ /' l \,
f g,
\
A
'\ CEOAR .-
K N O X/ 4 , g 'j l ,' l l [ l 4 s j [ . s i i0tx0N j f 'g EXISTING JANUAllY 1.1987 N R0CK - - - - - - - % ! ' '
!,-/ +;e g 7"" . /- . .-
. \j s s PIERCE
--[- ;
- - 4AKptK l l' ,
I - \ 'i ,*Ag N E,, e . e f .. .Z - fSTO ANTEL OPE g _ w _O! ' n.y,f l ,,,,, _, hUMiNG ^
~
\ *,
I LOUP G AR FIELO f W HE ELER
~ ~ ~ ~
YA ISON STANTON h . , 4 " l l A hk AIT f s e.. .
.~~ T~ ~ ~~" { ' ~ ~L ~ ld j f
- - - - - . .- _ _ . . . _ _ . . _ _ goo .- ~
(OWA PLAT'T,Ei {l *'.,
' VALLEY '
GREELEV , l COL FAX D000E W ASH- -
! s e,- ,
l _, r . ,A} * ' :a ~ rE e , r jd - _..,_, s q'M*_x ~
.~ h, N $ w i
---w - - - .
NANCE ~- 'N ^ . 7r
~%r '
b._r' I *
< ",'Qi s-.,
! ME R RICM , # :*
, 4 'j\bN.5cmA ~~LN l SHER AN f 1
.l'- P0LK B UTLER l$AU DERS g 412 w
,'gTTdis
+
1 ,,
~. .- .q:1 L
\..l ,.y.
l - l
. ... - _ _ . - . . . - s' j.9 l g a t tr$ ) 0 N P .,') F FAL0 sr -
l .- ) j' 4 ' '.'~I ! . I I ..
-N ! /$ bl'*O^S6{ '
/, I \ - . -4yym
- - -., IlN" t< [' '.,ji Y Oi PK ph g ,,a' m, - ~ J( p' usic I '
l ; i l
./et /. f 9
'1' 1.: H A M I L T O. _N
_._ p' __. l . .N _ ;-- . S E .W A R D-- j- { .,7
. \' e . cw
... n y . a. i ~. . 010E NT 4,r l . .' ~! --. !
i i .. . . . te*.s .. PHELPs
' K E AlI N ,,E Y
.A0AW
, j, j l CLAY F t LL MOR E S A LIN E J O H N S O N~ i f
f " l ,d. ! ,' Ih ^?" .-- + -*'
'.( f --l l' .cl. _ . _ _ _t. r._..
o( g-4p _. __ ^. i
.y A m AN ! ! , NigR ! .. .
l /.. lF R A N xLiN wEsstEn IN U Ck O LLS l -
- '
- t ' l < l PAWNEE ! RICH AR DSON f',
! e b ! c f r EYS'O N ' GAGE
. l -n@ l s
' - +
l o
~
j g/. . j {J l l{* r.r. u,
~.
KANSAS 2.... e y _" , e; uc HDistnct c Pmuer (
.t
e
. v STATISTICAL REVIEW l Nebr=km Public Power District Electric System, Nuclear Fecility, Aserage Numiher et Revenue Customers . KWil Males 'l From Sales 'a (Thousands) (Thousands)
. SALES itetail:
hsidential . ....... . . ... .. . .... . . . . .. 80,978 718,928 8.1 $ 46,119 13.4 Itural & Farm . .... . . . ........ . . .. .. . .. - 5,423 84,762 1.0 ' 5,849 1.7 Commercial . . . . . . ... .. . . .. . . 17,353. 590,298 6.6 '36,888 10.7 Ind ustrial . . . . . . . . . . . . . . . . . . .. ... .. .. 77 686,541 7.7 26,970 _ 7.9 Municipal & Federal . . . . ..... ... . . . . . .. 3,073 143,943 . 1.6 8,483 . _2. 5 , Total itetail . . . . . . . .. .
. . . . 13 ,904 2.224,472 25.0 $124.309 36.2 Wholesale:
, 52 Municipalities (Total Requirements) . . . . . . . . . . 1,085,958 12.2 $ 39,834 11.6 19 Municipalities (Interconnection-Partial hquirements) . . 92,075 1.1 . 2,708- ' .8 26 Public Power Districts & Cooperatives (Total bquirements) . 3,108,926- 35.0 107,647 31.3 Other Utilities-Non-Firm & Participation . . . . . .. . .. 2,375,195 26.7_ 59,243 _1,7.3 .
Total Wholesale . . ... . .. ... . . . . . . 6,662,154 75.0 $209,432 61.0 Total Electric hvenues. . . . . . .... . . . .. . .. 8,886,626 100.0. $333,741 97.2 Other Operating byenues . .., . . . . . . . . 9,619 2.8 Total Electric System Operating hvenues . . . . .. $343.360 100.0 Production KWil 't Onets
'4 GENEllATION (Thousandal (Thousands)
Production: Electric System Oncluding Interchange) 4.5 $ 13,799 5.3 _421 &33 . Purchased: Power Supply System'D . . . . . , . . . . . . . 4,954,454- 52.7 $138.616 53.7 Nuclear Facility'U . .. . . .. . . . . 2,025.884 21.6 66,945 25.9. Other .. . . ... . . . . . . . .1,992,099 ' 21.2 38,944 s _15.1 Total Power Purchased . .. . . . 8,972,437 95.5 $244,505 94.7 Total Power Produced and Purchased . . . ., . . 9,393,770 {0J0 J258,30j ,100g (1) The Electric System purchases 1001 of the net generation and power purchases of the Power Supply System and 509 of the net generation of the Nuclear Facility based upon the total costs of the respective systems. Pursuant to the Power Sales Contract, Iowa Power and Light Company purchased 2,026.254,000 KWIL lowa Powerand Light participation is not included in the table. ' 19M8 ' 19M5 - ln'creene If) GENEf1AL . tThousandat iioitar.1 Utility Plant (at costh Electric System . . ... . . . .. . . . . . . . . . $ 667,455 $ '646,621 $ 20.834^ Power Supply System . . .. . . . . .. ... . ;761,634- 759,856' 1,778 Nuclear Facility .... . . 545,697 533.248 .
. . . . . ... 12.449 -
Total Utility Plant ., . ... . . . . .. . . . . $ 1,974,786 ' $1,939,725 $ 35,061' www =.. = -
' Number of Accredited .
Planta m ~ Capability qKWJ Production Plant Facilities: ' Steam-Conventional . . . .. .. .. . . . . . . .. . .. 6' 1,750,300 Steam-Nuclear . . . . .. . . . . . . . . . . . . .
.. 1
'[. . 778,000m '
ilydro . .. . . . . . . . .. ...... . . . . .. ... . . .. 11 161,200 Diesel.,... . . . .. .
.. ... .... ... . . . . . . .. .. . 10 _ 36.849 Peaking Turbine . .. . . . . . . .. . .... . .. . .... . 3 .
116,000
. Total Production Plant Facilities . . . . . .... .. .. .. ... 31 2.842,349 m ..w m.- .
~
\ (1) Net of retirements
, 13) includes two steam plants, six hydm plants and ten diesel plants under contmet to the District
( n CD includes 389,000 KW nmtmdel tu foun Power and Light '
. -l . Transmission Facilities: ., -
Miles of Transmission Line in Service . . . . . . . . . . . . . . . 6,386 Personnel: Number of bgular Full. time Employees . . . . . . . . ... . . .2,009 , x i 36 > !: e t
.e , }
_'h'_
- _ r. ., .m.
. S.
and Power Sulilily System l Year Ended December 31,1986 NPPD's dollar came from NPPD's dollar used for
%1UNICIPAL, FEDERAL, BOND RETIRE 5 TENTS. CONSTRUCTION RURAL & FARst FRONI REVENUES, ETC.-8 6'i OTiiER OPERATING TAXES, INTEREST AND OTilER REVENUES-2W4 INCONIE DEDUCTIONS iNET COST OF PRODUCTION-INDUSTRIAL / OF INTE REST INCON!E POWER SUPPLY SAllS- 7 91 AND OTilER REVENUEst- 4 69 SYSTEN! - 40.4'i
/
LO' COST OF OTilE R p i 4, OPERATION AND
,,l ,:
~
f - NIAINTENANCE 4' '(' 7 COST %1ERCIAL - g# . SAllS-10 74 j}G " .- (,h t( 14 EX PENSES - 116'I .
'1
'-,% t
( c .3
. % *f .'l "d sgQ. l
~
Ql,.\1T%
-7( j ti
.. f r s L / COST OF PURCllASED 4
(( W'b'), C / IUWE R- II.39 . T . . '\1i s r RESIDENTIAL
/ . h{d # .~
t WilOLESALE k ?' 5 REVENUE -6104 :. t - SALES- 11 r1 ,.u ,. ( , t - COST OF PRODUCTION
-0TiiER-404 COST OF PRODUCTION-NUCLEAR FACILITY-19 51 Average KWH ('ost Per Total KWH Sales s in million >
Hesiden t ial C ust omer %ies m wi wen s.muutum k i h.w ..r i h. u rs I h is repn .e n t .. lu T . ine n..i%e fn.ni 19Mi
.n n -
* :,u,
~
4 ~ 'gg - ,."a'
. , . ~ u y ..
p 4 . ,
- s. : . .n M ;. M
;c, u 1
j *"' W-
; r 1 ,c
. .1 g. ., e.: gw :
3 *a' a l l e. ;,,,, lw. n44 M I
, .h I ,fd IIe y -e. .r ;n ~
48 + 41 =: =L =4 se *, %e. w gi ,c ,
.g ,, g ,,, ,
37 _ ____J
w -, 1 l l l l t
'll Public HNebraska Power District General Offices 1414-15th Street i
' P.O. Box 499 Columbus, NE 68601
V
. , e GENERAL OFFICE Nebraska Public Power District "*
" " ""s!%"E 40^s* *** "*"
NLS8700264 June 2, 1987 U.S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555
Subject:
Nebraska Public Power District 1986 Annual Report NRC Docket No. 50-298, DPR-46 Gentlemen: In accordance with the requirements cited in 10 CFR Part 50.71(b), Nebraska Public Power District submits its Annual Report for calendar year 1986. As specified ir, Regulatory Guide 10.1, we are enclosing ten (10) copies of the report. Should you have any questions or require additional information, do not hesitate to contact me. Sincerely, Trevors Division Manager Nuclear Support
/rg Enclosure (10) cc: Regional Office USNRC - Region IV NRC Resident Inspector Cooper Nuclear Station h
t\\0}}