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{{#Wiki_filter:. | {{#Wiki_filter:. | ||
g v i 1979 Highlights | g v i 1979 Highlights | ||
? | ? | ||
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Eamings Per Share cecreased 30. $2.41 32.44 .12A Annual Dividend Rate en common stcck increasec 30 ~ | Eamings Per Share cecreased 30. $2.41 32.44 .12A Annual Dividend Rate en common stcck increasec 30 ~ | ||
:n .:une t979. $1.78 St.70 & | :n .:une t979. $1.78 St.70 & | ||
Eiectnc and gas rates .ncreased 326 0 motion arc $16 6 rniken, rescect:vety. en an anrual casis, eMect:ve May J.1979. Acc:t.cnal amounts total:ng S6 9 miikcn annua'ly. feec January 25.1920. crimamy te cr' set mgrer precerty ta.xes. cecame ef+ective Fetruary S.1950 E ectric rate increase acchcat:en for $25.6 mclion,or 2 5%, | Eiectnc and gas rates .ncreased 326 0 motion arc $16 6 rniken, rescect:vety. en an anrual casis, eMect:ve May J.1979. Acc:t.cnal amounts total:ng S6 9 miikcn annua'ly. feec January 25.1920. crimamy te cr' set mgrer precerty ta.xes. cecame ef+ective Fetruary S.1950 E ectric rate increase acchcat:en for $25.6 mclion,or 2 5%, | ||
annua 4y filed Septemcer 21.1979. | annua 4y filed Septemcer 21.1979. | ||
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$3 00 2 50 r.amess / | $3 00 2 50 r.amess / | ||
persnareg/ / | persnareg/ / | ||
2 00 1 50 | 2 00 1 50 1 00 | ||
1 00 | |||
%ca*ed anross diwdend rare at year.or4 0 50 I | %ca*ed anross diwdend rare at year.or4 0 50 I | ||
l 3 Sa 55 70 ?! *) | l 3 Sa 55 70 ?! *) | ||
Line 43: | Line 38: | ||
1 80052ga | 1 80052ga | ||
4 To Our Shsreholdsrs By any measure 1979 was a tota'ing $6.9 million to ccver Ngner year end.The cuik cf these acc:tions difficult time that tested the strengths property taxes nave ceccme effective cccurred in tre last cuarter of 1979 with and rescurces cf all Amencar s. it was in Fecruary 1980. The histencally hign only a small effect on 1979 sates. The a year unen the senous energy succty inflationary pressures on the censumer interest :n gas is excected dis:ccations and intense inflationary Company's cceratirg costs and to cent:nue into 1980 stimulated by J pressures which marked the 1970's cacital financ:rg program continue, continued increases in cil onces,.. | 4 To Our Shsreholdsrs By any measure 1979 was a tota'ing $6.9 million to ccver Ngner year end.The cuik cf these acc:tions difficult time that tested the strengths property taxes nave ceccme effective cccurred in tre last cuarter of 1979 with and rescurces cf all Amencar s. it was in Fecruary 1980. The histencally hign only a small effect on 1979 sates. The a year unen the senous energy succty inflationary pressures on the censumer interest :n gas is excected dis:ccations and intense inflationary Company's cceratirg costs and to cent:nue into 1980 stimulated by J pressures which marked the 1970's cacital financ:rg program continue, continued increases in cil onces,.. | ||
decade reached the:r most cr:tical however, to outpace tne response of Sales of eiectnc:ty and gas fccbeating | decade reached the:r most cr:tical however, to outpace tne response of Sales of eiectnc:ty and gas fccbeating | ||
Line 52: | Line 43: | ||
; external conc:t.cns. the re!iaciiity of appropnate financ:al relief. As a ccth eamings and statibty cf customer j gas and efectr:c service to LILCO consequence, the Comcany fincs .t rates cecause of the smallincremental | ; external conc:t.cns. the re!iaciiity of appropnate financ:al relief. As a ccth eamings and statibty cf customer j gas and efectr:c service to LILCO consequence, the Comcany fincs .t rates cecause of the smallincremental | ||
; customers remains largefy unaf'ected necessary to accly for adctional rate capttal investment required when the i but ,ts cost, as with all energy forms has aciustments on a regunr basis to customer airaacy has gas and elecinc l - continued to increase. Meaningful compensate for the pers;stently service for general purposes. | ; customers remains largefy unaf'ected necessary to accly for adctional rate capttal investment required when the i but ,ts cost, as with all energy forms has aciustments on a regunr basis to customer airaacy has gas and elecinc l - continued to increase. Meaningful compensate for the pers;stently service for general purposes. | ||
! *progress continues to te made in cur growing cost burdens created by 1979 also marked the Centennial efforts to lessen cur community's today's economic environment. in this year of Edison's invention of the decendence en fere gn oil the single regard, an acclicat:en to increase ir.cancescent e!ectne lignt. This | ! *progress continues to te made in cur growing cost burdens created by 1979 also marked the Centennial efforts to lessen cur community's today's economic environment. in this year of Edison's invention of the decendence en fere gn oil the single regard, an acclicat:en to increase ir.cancescent e!ectne lignt. This most important fac*ar ccetnbuting to electnc rates by $25.6 million was filed remarkable achevement is an tecay's ecencmir, cifficulties. this past Sectemcer witn the accreenate reminder cf the many income for the commen stock rose excectation that an increase will ways that electnc:ty is cacacle of to $128 8 millier vom S111.3 millien in beceme effective no later than May contncut;ng to human prcgress. This 1978. but w;th e 16.9 % increase in the 1980. Another rate filing for an thcugnt :s particularty nctewortny numcer of aver age common shares increase to teccme effective in 101 today as e!ectrie:ty seems destined to outstancing,the earnings per share seems inevitatie. play a maict role in our nat:enal effort cechned skgntly l rom $2.44 in 1978 to Sales of electnc:ty and gas to ULCO to recuce reliance on foreign energy | ||
$2.41 in 1979. In JL ne 1979, the customers in 1979 shewed slight supplies. E! ectr:c:ty's verrat:hty annual dividend rata on the ccmmen growth over the previcus year. provides a matenless cccertunity to stock was raised 8e to $1.78 per share. reffecting the effects of mild weather sutstitute the use of many other Thts is the 20tn increae over the last and lasting energy Conservation. energy fcrms for cil. Through 21 years. Consumer react:en to scanng neating conversion to electric:ty, all of today's Earr.ings benefited from the $26.0 oil pnces indicates, however, tnat mere dcmestic fuels -ccal. gas, and mathen electric and $16.6 million gas favoracle sales results in the heating nuclear -can be made conveniently rate increases which went into effect area can te antic: pated in 1980. More availacle for res;dential, business, and n May 1979. As cart of the Puche than 27.000 customers acclied for gas transportation use. In add:tien, future Serece Commission's ruling in that heating service in 1979. with 5.600 technolcgies such as solar energy can rate case adctionalit creases space neating customers added by e:ther ce converted to electne:ty I | |||
most important fac*ar ccetnbuting to electnc rates by $25.6 million was filed remarkable achevement is an tecay's ecencmir, cifficulties. this past Sectemcer witn the accreenate reminder cf the many income for the commen stock rose excectation that an increase will ways that electnc:ty is cacacle of to $128 8 millier vom S111.3 millien in beceme effective no later than May contncut;ng to human prcgress. This 1978. but w;th e 16.9 % increase in the 1980. Another rate filing for an thcugnt :s particularty nctewortny numcer of aver age common shares increase to teccme effective in 101 today as e!ectrie:ty seems destined to outstancing,the earnings per share seems inevitatie. play a maict role in our nat:enal effort cechned skgntly l rom $2.44 in 1978 to Sales of electnc:ty and gas to ULCO to recuce reliance on foreign energy | |||
$2.41 in 1979. In JL ne 1979, the customers in 1979 shewed slight supplies. E! ectr:c:ty's verrat:hty annual dividend rata on the ccmmen growth over the previcus year. provides a matenless cccertunity to stock was raised 8e to $1.78 per share. reffecting the effects of mild weather sutstitute the use of many other Thts is the 20tn increae over the last and lasting energy Conservation. energy fcrms for cil. Through 21 years. Consumer react:en to scanng neating conversion to electric:ty, all of today's Earr.ings benefited from the $26.0 oil pnces indicates, however, tnat mere dcmestic fuels -ccal. gas, and mathen electric and $16.6 million gas favoracle sales results in the heating nuclear -can be made conveniently rate increases which went into effect area can te antic: pated in 1980. More availacle for res;dential, business, and n May 1979. As cart of the Puche than 27.000 customers acclied for gas transportation use. In add:tien, future Serece Commission's ruling in that heating service in 1979. with 5.600 technolcgies such as solar energy can rate case adctionalit creases space neating customers added by e:ther ce converted to electne:ty | |||
I | |||
% 1 t I | % 1 t I | ||
: - .r; . | : - .r; . | ||
._t Y d 4- 4s_ | |||
._t Y d | i Fo - | ||
4- 4s_ | |||
i | |||
Fo - | |||
E' | E' | ||
,3 | ,3 | ||
\ ,: F . , > | \ ,: F . , > | ||
s (a: | s (a: | ||
Cheries R. Pierce Wilfred O. Uhl Cr. airman of the Board and President Chief Executive Ctftcer 2 | Cheries R. Pierce Wilfred O. Uhl Cr. airman of the Board and President Chief Executive Ctftcer 2 | ||
or usec as a suppiement for heat.ng we are in agreement wrth Presicent stronger.n tne years aread purposes. Carter's assessment that r uc! ear !t has always teen the case that A num7er of L!LCO prcgrams are power is necessary :f cur nation's vital planning and operating Our gas and aimed at taking advar tage cf this energy neecs are to ce met. electric systems for acnievement of versat:lity through the ceveiceme .t r f The fact is that the enty estions acecuate, renacle, anc economical e!ectnc venic:es. heat cumes, and availdele to Long Island electne service has hac to vary | or usec as a suppiement for heat.ng we are in agreement wrth Presicent stronger.n tne years aread purposes. Carter's assessment that r uc! ear !t has always teen the case that A num7er of L!LCO prcgrams are power is necessary :f cur nation's vital planning and operating Our gas and aimed at taking advar tage cf this energy neecs are to ce met. electric systems for acnievement of versat:lity through the ceveiceme .t r f The fact is that the enty estions acecuate, renacle, anc economical e!ectnc venic:es. heat cumes, and availdele to Long Island electne service has hac to vary | ||
* rem wnat.we solar energy orciects. The:r pract: cal censumers in tneir quest for sucstartral would regarc as the cetimum tecause acciicat:en in the years ahead will relief frem oil decencence are ccal cr of theimcact of govemment regulation | * rem wnat.we solar energy orciects. The:r pract: cal censumers in tneir quest for sucstartral would regarc as the cetimum tecause acciicat:en in the years ahead will relief frem oil decencence are ccal cr of theimcact of govemment regulation mean a significant cecrease ;n nuclear. LILCO has closelyinvestigated in vanous forms. Because of the petroleum consumpt:cn. The role of these cctions ever the years as part of cuantum leacs cf government :nterven. | ||
efectnc:ty in Long Islands total energy tne cec:sion mak:ng process for the tien and oversigrt at every !evel, the mix woutc. in tum. te expected to grow Shoreham and Jamesecrt clants. and ceviations from tr at optimum have net larger. lc the meantime etectnc:ty's in response to the Feceral Decartment only teccme greater, but t.end to move versatility is providing more immeciate cf Energy's orcers fer the convers:en in many c:rectices at once. Acerocnate cenefits. L LCO's acit,ty to impcrt to ccal of a numcer of the Company's rescenses to these acced irnced:ments energy supplies from nuc! ear, coal, existing cil turning generating units. to crcerly management and cperaticn | |||
mean a significant cecrease ;n nuclear. LILCO has closelyinvestigated in vanous forms. Because of the petroleum consumpt:cn. The role of these cctions ever the years as part of cuantum leacs cf government :nterven. | |||
efectnc:ty in Long Islands total energy tne cec:sion mak:ng process for the tien and oversigrt at every !evel, the mix woutc. in tum. te expected to grow Shoreham and Jamesecrt clants. and ceviations from tr at optimum have net larger. lc the meantime etectnc:ty's in response to the Feceral Decartment only teccme greater, but t.end to move versatility is providing more immeciate cf Energy's orcers fer the convers:en in many c:rectices at once. Acerocnate | |||
cenefits. L LCO's acit,ty to impcrt to ccal of a numcer of the Company's rescenses to these acced irnced:ments energy supplies from nuc! ear, coal, existing cil turning generating units. to crcerly management and cperaticn | |||
; and nycro sources in the form of The resu;ts of these;nvestigations of cur system have recutred even j | ; and nycro sources in the form of The resu;ts of these;nvestigations of cur system have recutred even j | ||
electnc curenases from netgncenng cemenstrate to cur sat:staction that greater acclication cf initiative and utiht:es and the acil.ty to cum natural nuclear energy is eteaner, safer, and cec ceSen frcm cur fellow empicyees in gas at three L;LCO ccwer plants mere eccnomicalthan c0at. However, every part Of the cr;ar ization, and we saved mere than 7.5 maitien carre's cf the fact that cur censumer gratefully acknowiecge this furtner | electnc curenases from netgncenng cemenstrate to cur sat:staction that greater acclication cf initiative and utiht:es and the acil.ty to cum natural nuclear energy is eteaner, safer, and cec ceSen frcm cur fellow empicyees in gas at three L;LCO ccwer plants mere eccnomicalthan c0at. However, every part Of the cr;ar ization, and we saved mere than 7.5 maitien carre's cf the fact that cur censumer gratefully acknowiecge this furtner | ||
, cet and $42 motion for Long Island const.tuency is nct sucstantiaily manifesta!:en of the value and imper. | , cet and $42 motion for Long Island const.tuency is nct sucstantiaily manifesta!:en of the value and imper. | ||
Line 100: | Line 64: | ||
The use of nue: ear power rema.ns, !:y the recent act:ces of the New Ycrk newever, the test cccertun:ty to State S. ting Board for Jamesport in | The use of nue: ear power rema.ns, !:y the recent act:ces of the New Ycrk newever, the test cccertun:ty to State S. ting Board for Jamesport in | ||
'essen Long Islanc's neavy reliance en unanimously vcting to license a coal- I oil. Intrccuction cf nuclear energy into fired. rather than a nuc! ear plant. While the LILCO system will net only provice the coal alternative w!Il result in higher , | 'essen Long Islanc's neavy reliance en unanimously vcting to license a coal- I oil. Intrccuction cf nuclear energy into fired. rather than a nuc! ear plant. While the LILCO system will net only provice the coal alternative w!Il result in higher , | ||
meaningful relief from continuaily electne energy costs than a corre-esca:at;ng CPEC pnces. but will fumisn socnding nuctear plant. coal is still ^f - - @^^-- 1 | meaningful relief from continuaily electne energy costs than a corre-esca:at;ng CPEC pnces. but will fumisn socnding nuctear plant. coal is still ^f - - @^^-- 1 a vaivacle measure of fuel supply sutstantially mere attractive than en.6, men and Chief Executive Cfficer secunty net available througn continued rehance en cil, from teth an cepencence cn fereign-basec econcmic and reliacility stancpcint. The petrefeum. Unfortunately, the cay Long Island community and the nation - | ||
a vaivacle measure of fuel supply sutstantially mere attractive than en.6, men and Chief Executive Cfficer secunty net available througn continued rehance en cil, from teth an cepencence cn fereign-basec econcmic and reliacility stancpcint. The petrefeum. Unfortunately, the cay Long Island community and the nation - | |||
wren that relief will amve for our as a whole seem to be severalyears ; | wren that relief will amve for our as a whole seem to be severalyears ; | ||
cusicmers. with the cceratien cf the away from recogniz:rg the nuclear a Sncrenam Nuc! ear Power Station, has advantage. A centinuation of the W ' | cusicmers. with the cceratien cf the away from recogniz:rg the nuclear a Sncrenam Nuc! ear Power Station, has advantage. A centinuation of the W ' | ||
Line 114: | Line 76: | ||
cuence. we cetieve that nuciear energy, ceneve. are in accord w:th our nat:enal l wn:en has an enviacle safetf eecen- ecencmic anc scc:al goals and will ' | cuence. we cetieve that nuciear energy, ceneve. are in accord w:th our nat:enal l wn:en has an enviacle safetf eecen- ecencmic anc scc:al goals and will ' | ||
ence record. can ce mace sa:er still anc work to make L!LCO anc Long isf ace 3 | ence record. can ce mace sa:er still anc work to make L!LCO anc Long isf ace 3 | ||
Encrgy Nesds Reducing Reliance on Oli I In 1979 tne reahties of an uncertain CCst of gaschne. neatng cil and The keystone of the ef' ort to I wortd energy succly were ence rrcre electnc:ty.They are also concerned irrcrove me energy sucply picture is | Encrgy Nesds Reducing Reliance on Oli I In 1979 tne reahties of an uncertain CCst of gaschne. neatng cil and The keystone of the ef' ort to I wortd energy succly were ence rrcre electnc:ty.They are also concerned irrcrove me energy sucply picture is | ||
! brougntto tre cocrstec cf ne Amencan a0 cut the future avar!acihty cf these the recucten of tne overwnetming role | ! brougntto tre cocrstec cf ne Amencan a0 cut the future avar!acihty cf these the recucten of tne overwnetming role censumer Gaschnelines c:csed energy suppnes at any once. tnat cil plays in meet:ng tne nat:en s anti service stat: ens. and skyrocketing In 1979. Long Islancers locxed more Long is:anc's energy needs. Cnly in tnis heatng c:1 pnces were c: ear remincers c:csery than ever for new ways to meet way can me econernic strangiencid of cf our naten's precancus decencence tre:r energy neecs. LILCO intensif ed the OPEC nat: ens on our countryhe on fore'gn cil. its erfcris :o meet the cnanging nature of eliminated. Three basic e*fcris are | ||
censumer Gaschnelines c:csed energy suppnes at any once. tnat cil plays in meet:ng tne nat:en s anti service stat: ens. and skyrocketing In 1979. Long Islancers locxed more Long is:anc's energy needs. Cnly in tnis heatng c:1 pnces were c: ear remincers c:csery than ever for new ways to meet way can me econernic strangiencid of cf our naten's precancus decencence tre:r energy neecs. LILCO intensif ed the OPEC nat: ens on our countryhe on fore'gn cil. its erfcris :o meet the cnanging nature of eliminated. Three basic e*fcris are | |||
! Tre Unitec States' fcreign oil these censumer neecs and to rescend recuired to meet this goal. They are deoendence has grown so extreme to the ensis in the worta energy situat:co. (1)sucst tut en of cmer fuel forms for that the stigntest tremer in the imocrt cil. (2) comeste energy suppfy succty network can cause massive enhancement, and (3) the conservaten pclitical and economic d:siocaDons. and efficient use of energy. | ! Tre Unitec States' fcreign oil these censumer neecs and to rescend recuired to meet this goal. They are deoendence has grown so extreme to the ensis in the worta energy situat:co. (1)sucst tut en of cmer fuel forms for that the stigntest tremer in the imocrt cil. (2) comeste energy suppfy succty network can cause massive enhancement, and (3) the conservaten pclitical and economic d:siocaDons. and efficient use of energy. | ||
While there is mdesoread recognition The mostef'ectvemeasure availabie i | While there is mdesoread recognition The mostef'ectvemeasure availabie i | ||
of the need to reduce tnis decendence, to lessen Long Island's reliance on oil i scec:fic federal eregrams to eff ect re!ief is a shift frem petreleum fuel to nuclear. : | of the need to reduce tnis decendence, to lessen Long Island's reliance on oil i scec:fic federal eregrams to eff ect re!ief is a shift frem petreleum fuel to nuclear. : | ||
I remain absent. Our country continues Under L:LCO's clans.whien inc!uded 1 to te locked into an er'ergy policy mat the Comcany's 50% snare of the two ' | I remain absent. Our country continues Under L:LCO's clans.whien inc!uded 1 to te locked into an er'ergy policy mat the Comcany's 50% snare of the two ' | ||
the Arab cil emtargo execsed as haz- recently cenied nuc! ear units at arcous mere inan s:x years ago. Tccay Jamesccrt, about 70c6 of system-me United States is mere vulnerable generated efecinc:ty would have been than ever before. mpcrtng caity accut produced by nuc! ear power plants in t.vo-and-one-na:t ames as mucn me early 1990's. This would have re. ; | the Arab cil emtargo execsed as haz- recently cenied nuc! ear units at arcous mere inan s:x years ago. Tccay Jamesccrt, about 70c6 of system-me United States is mere vulnerable generated efecinc:ty would have been than ever before. mpcrtng caity accut produced by nuc! ear power plants in t.vo-and-one-na:t ames as mucn me early 1990's. This would have re. ; | ||
foreign oil as on 1970. duced Long Island's reliance en residual oil by mere inan 20 million barrels a year I This vulneracikty is particularly | foreign oil as on 1970. duced Long Island's reliance en residual oil by mere inan 20 million barrels a year I This vulneracikty is particularly | ||
; prcncunced in the Nortneast. Long -a volume greater man all the home heatng cil that is now bumed for resi- | ; prcncunced in the Nortneast. Long -a volume greater man all the home heatng cil that is now bumed for resi- | ||
Line 142: | Line 91: | ||
; nave been partcularly hard hit by creasing attenten during 1979, was scanng oil pnces as evidenced in the the pcssibility of convernng certain l | ; nave been partcularly hard hit by creasing attenten during 1979, was scanng oil pnces as evidenced in the the pcssibility of convernng certain l | ||
Average Cost per Gallon of Fuel Oil v - , | Average Cost per Gallon of Fuel Oil v - , | ||
l for Home Heating on Long Island ica.i m ercanom | l for Home Heating on Long Island ica.i m ercanom 7 | ||
7 | |||
_ me N 'M ' | _ me N 'M ' | ||
Sourcs..fournal of Commerce - | Sourcs..fournal of Commerce - | ||
7 . EL 1 | 7 . EL 1 cady Petroseum Pnces at W' voar-Er'o ]' - I ) | ||
cady Petroseum Pnces at W' voar-Er'o ]' - I ) | |||
315 | 315 | ||
) .. M W | ) .. M W | ||
W. ~^ q ., | W. ~^ q ., | ||
's u _q? ~ . | 's u _q? ~ . | ||
) ~ | ) ~ | ||
s A } | s A } | ||
-er . N | -er . N i .__- | ||
i .__- | |||
\ | \ | ||
o | o | ||
$9 71 71 75 7' 7 , | $9 71 71 75 7' 7 , | ||
The average price of home heating cel on _-- | The average price of home heating cel on _-- | ||
Long Island increased by 3ae per gallon, or - | Long Island increased by 3ae per gallon, or - | ||
Line 182: | Line 111: | ||
*M g5 M, | *M g5 M, | ||
'.7 | '.7 | ||
.3 ~*.DM i,i' C*5.m a -:~ . , . | .3 ~*.DM i,i' C*5.m a -:~ . , . | ||
. ' .-v' ce: | . ' .-v' ce: | ||
-L ,y v .= ^ - - | -L ,y v .= ^ - - | ||
\ | \ | ||
% - .s : . - - | % - .s : . - - | ||
i: .:aa,;.ua[dr.s i f; -; .- ' ', n~ | i: .:aa,;.ua[dr.s i f; -; .- ' ', n~ | ||
rw.2' ens. | rw.2' ens. | ||
. t '"l , ! ? . | . t '"l , ! ? . | ||
' ' :~ | ' ' :~ | ||
Hours of waiting.The return of the gasoline line, ocs-wven buying days, purchase limits. and skyrocketing p* ices forced the Americam consumer facedo-face, and bumper-to-bumper, with the natloffs precarious dependencs on foreign oil. | Hours of waiting.The return of the gasoline line, ocs-wven buying days, purchase limits. and skyrocketing p* ices forced the Americam consumer facedo-face, and bumper-to-bumper, with the natloffs precarious dependencs on foreign oil. | ||
l l | l l | ||
Line 209: | Line 129: | ||
rew coal-hred un:ts in tre evert trat Prices were acvanc:ng at a rate that l | rew coal-hred un:ts in tre evert trat Prices were acvanc:ng at a rate that l | ||
procesed nuclear units were not mace .! only a matter cf time cefore t e l j actncnzed. ecl:ar-a-ga:Icn !evel wculc ce reacnec ! | procesed nuclear units were not mace .! only a matter cf time cefore t e l j actncnzed. ecl:ar-a-ga:Icn !evel wculc ce reacnec ! | ||
LILCO nas aisc t:een tamng emer fcr nome neatrg cd as well. Ccm-ste s t0 lessen cd use. Interconnec- pouncing tre ence situaton was tre - | LILCO nas aisc t:een tamng emer fcr nome neatrg cd as well. Ccm-ste s t0 lessen cd use. Interconnec- pouncing tre ence situaton was tre - | ||
I- tiens with re:gn0cr.ng ut!ity systems uncertainty cf su p'y Many con- - - - | I- tiens with re:gn0cr.ng ut!ity systems uncertainty cf su p'y Many con- - - - | ||
Line 218: | Line 137: | ||
:n : ate 1978 cf the LILCO/Censciidated as a waY to prciect themseives from the Th * '*d ''* * * " t h' *h *'' b''*" '" d'**'* * | :n : ate 1978 cf the LILCO/Censciidated as a waY to prciect themseives from the Th * '*d ''* * * " t h' *h *'' b''*" '" d'**'* * | ||
- the actual barrels of od consumed by LILCQ | - the actual barrels of od consumed by LILCQ | ||
; t;c:sen .CIOfte. Uth t"O rew ' Ink piaytng grcWICQ cd suCCly Crun0h, arid the in its plants to generate electrfetty for its l a ma;Cr r0fe. 3 5 tdhen <Wh of ocwer nstaifaticn of electr:c heat pumps system recuirements for the years 1969- | ; t;c:sen .CIOfte. Uth t"O rew ' Ink piaytng grcWICQ cd suCCly Crun0h, arid the in its plants to generate electrfetty for its l a ma;Cr r0fe. 3 5 tdhen <Wh of ocwer nstaifaticn of electr:c heat pumps system recuirements for the years 1969-j Nas Our0nased from CIPer utlites in irCreased in PCCularty. 1979 and the estimates for 1980-1984. The 1979 A saving Of $34 mdien was light blue area indicates the additional od | ||
j Nas Our0nased from CIPer utlites in irCreased in PCCularty. 1979 and the estimates for 1980-1984. The 1979 A saving Of $34 mdien was light blue area indicates the additional od | |||
!. consumouen required it the Company j | !. consumouen required it the Company j | ||
reated for L:LCvncustomers as a result were not anie to subsutute power cf trese 1979curcrases. Accr0x- purchand from other uunun or to use ctner i | reated for L:LCvncustomers as a result were not anie to subsutute power cf trese 1979curcrases. Accr0x- purchand from other uunun or to use ctner i | ||
. mate!y 45% ofInis ccwer was produced 'ue's to generat. eiectricity on its system. 1 by coal-fired clants. 20% by hycro- Th' d*'t biue area represents the barre #s of od to be saved through generation of electnC installatlCns,1C4h Oy MLC! ear electricity with nuclew fuel at the shoreham CCWer statCns, and only 25% cy ed- Nuclur Power stadon. | . mate!y 45% ofInis ccwer was produced 'ue's to generat. eiectricity on its system. 1 by coal-fired clants. 20% by hycro- Th' d*'t biue area represents the barre #s of od to be saved through generation of electnC installatlCns,1C4h Oy MLC! ear electricity with nuclew fuel at the shoreham CCWer statCns, and only 25% cy ed- Nuclur Power stadon. | ||
' Ired plants. The Ocwer sur.;stituted The chart sho us that in 1979, by burnmg | ' Ired plants. The Ocwer sur.;stituted The chart sho us that in 1979, by burnmg reduced LILCO's need !c curn cil by naturni ga primansy obtained under specias some 5 7 mdlion carrets. !n acc; ten,the cor: tracts and by purchasing economy Ccr pany was at:le to ceta:n scecial p***' from oth*' utiitties. Litco reduced fuel oil consumption for its system require-na! ural gas su,,,,ly o Centracts te replace menta by 7.5 mdtion barrets, or 33% | ||
tre use cf fuel cd. The use of natural The resultant savings of s42 million were gas saved 18 mdlion Carrels Cf very pused directly to customers through their rign-pr:Ced. :cw sulfur Cil and reduced bills. It also shows that through the un of nuctor fuel, and the subsutudon of s'eO!riC:ty CCsts Ic Customers bY an purchased power and other fuels. LILCO's adc:tCral $8 mdlion. consumpdon of oH in the urty 1980's wlH be LCrg Island Consumers, meanwhde, reduced about 40* below the level that i would be required if allthe Company's electric system requirements were produced entirely by burrung oil | |||
reduced LILCO's need !c curn cil by naturni ga primansy obtained under specias some 5 7 mdlion carrets. !n acc; ten,the cor: tracts and by purchasing economy Ccr pany was at:le to ceta:n scecial p***' from oth*' utiitties. Litco reduced fuel oil consumption for its system require-na! ural gas su,,,,ly o Centracts te replace menta by 7.5 mdtion barrets, or 33% | . . . . .m- - , .1 . . . . . . . ' Oil Consumed 8 b. h s i.''i 4 (WhCes C* Sarre si | ||
tre use cf fuel cd. The use of natural The resultant savings of s42 million were gas saved 18 mdlion Carrels Cf very pused directly to customers through their rign-pr:Ced. :cw sulfur Cil and reduced bills. It also shows that through the un of nuctor fuel, and the subsutudon of s'eO!riC:ty CCsts Ic Customers bY an purchased power and other fuels. LILCO's adc:tCral $8 mdlion. consumpdon of oH in the urty 1980's wlH be LCrg Island Consumers, meanwhde, reduced about 40* below the level that i would be required if allthe Company's electric system requirements were | : h. x m ft h Y ; ...w tg | ||
produced entirely by burrung oil | |||
. . . . .m- - , .1 . . . . . . . ' Oil Consumed 8 b. h s i.''i | |||
4 (WhCes C* Sarre si | |||
: h. x m ft h | |||
Y ; ...w tg | |||
, , ~ e,M.3 { ,. c %. | , , ~ e,M.3 { ,. c %. | ||
. . - . .. _ 2s 3 U, x . . '. 7. j '' | . . - . .. _ 2s 3 U, x . . '. 7. j '' | ||
't < '>".h | 't < '>".h | ||
Line 245: | Line 151: | ||
gl < .* ' ', 3 .K, I J'g $ Twg g. ',j; , yg**as s | gl < .* ' ', 3 .K, I J'g $ Twg g. ',j; , yg**as s | ||
.') | .') | ||
g ' | g ' | ||
20 Nwctear | 20 Nwctear | ||
*' f $ ' ' | *' f $ ' ' | ||
..e.- | ..e.- | ||
pyp.w 4 - | pyp.w 4 - | ||
pma | pma c | ||
y g f k : T i ; &. | |||
yf 1 +] . ] , ; , | |||
yf | |||
.j f *f"1?; g:jQ' y 5 *~ ' * , " | .j f *f"1?; g:jQ' y 5 *~ ' * , " | ||
. ). '.. i ' ! ; Q.c . - %.f .l 4 &W 5 , | . ). '.. i ' ! ; Q.c . - %.f .l 4 &W 5 , | ||
;.f , | ;.f , | ||
-y ; ., f3 [ . .%Q . , v * ,, ' ,, ( . IRA M | -y ; ., f3 [ . .%Q . , v * ,, ' ,, ( . IRA M | ||
(. ' f | (. ' f | ||
. , .9 f, ,w,.?m * . j. j ' | . , .9 f, ,w,.?m * . j. j ' | ||
P .7 p | P .7 p y ;. 69 ?t *3 75 79 61 3s n' ++ | ||
(( 7 . s | |||
y ;. 69 ?t *3 75 | |||
79 61 3s n' ++ | |||
~ ; _q y t e | ~ ; _q y t e | ||
'y [+ , y b5 | 'y [+ , y b5 | ||
, y ,- .sr | , y ,- .sr 4;;. 1 . . .- | ||
,, f W :D $pif)J 4 dd '4 u% ;.& ' .4pq 2 s. j# | |||
4;;. 1 . . .- | |||
,, f | |||
W :D $pif)J 4 dd '4 u% ;.& ' .4pq 2 s. j# | |||
, . .4 ,, b., | , . .4 ,, b., | ||
.[ . | .[ . | ||
* ) *1 a {. p. . " = - . | * ) *1 a {. p. . " = - . | ||
* ~ | * ~ | ||
Hyortsta9c testing of the shoref'am Nucteer power station's reactor vesset and assocfstod p19:39 was suCCe9sfully corrpleted in september 1979. An esample of the care that is a regular part of nuclest plant construction, this important mdestone tested the integrity of the reactor at l'reeeuret far aoove those to be espertenced during the piant's operation. | Hyortsta9c testing of the shoref'am Nucteer power station's reactor vesset and assocfstod p19:39 was suCCe9sfully corrpleted in september 1979. An esample of the care that is a regular part of nuclest plant construction, this important mdestone tested the integrity of the reactor at l'reeeuret far aoove those to be espertenced during the piant's operation. | ||
5 | 5 | ||
Electric En:;rgy's Vcrsatility In tms ame cf fuel scarc ty,me role of peak erectricty will be used as a resuit that cf us:ng cil heat. This ccmcettne eiectncty in our economy s energy mix cf th:s cartnersn:o arrangement. cost. ccmcined with electnc heat s can t:e excected to grow larger. !f ~he L!LCO Scict Water Heating natural acvantages cf C!eanhness. | Electric En:;rgy's Vcrsatility In tms ame cf fuel scarc ty,me role of peak erectricty will be used as a resuit that cf us:ng cil heat. This ccmcettne eiectncty in our economy s energy mix cf th:s cartnersn:o arrangement. cost. ccmcined with electnc heat s can t:e excected to grow larger. !f ~he L!LCO Scict Water Heating natural acvantages cf C!eanhness. | ||
secety s needs are to be met. :t wil! Program. :egun in late 1978 and one cf convenience. renachty. and incividual ceccme increas ngly essential to the largest of .ts k:nc in me naton, rocm thermostate centrot to encourage use edectve!y all availace energy contnues to attract substartal con- censervaten. snould at*ract greate.r fcrms. This means the eft: cent sumer interest. The eng:nal goal numbers cf customers to eier,aric heat-use cf all of tocay's availacle fue!s- was 600 instaliatens in a three-year ing. There wer.e 913 conventional coal. gas, oil. and nuc! ear-as well pened. By the end of 1979.there were e'ecmc heatng instauatens mace en as the employment of succlemental 272 systems scid. The 6C0 mark :s now the L:LCO system in 1979. | secety s needs are to be met. :t wil! Program. :egun in late 1978 and one cf convenience. renachty. and incividual ceccme increas ngly essential to the largest of .ts k:nc in me naton, rocm thermostate centrot to encourage use edectve!y all availace energy contnues to attract substartal con- censervaten. snould at*ract greate.r fcrms. This means the eft: cent sumer interest. The eng:nal goal numbers cf customers to eier,aric heat-use cf all of tocay's availacle fue!s- was 600 instaliatens in a three-year ing. There wer.e 913 conventional coal. gas, oil. and nuc! ear-as well pened. By the end of 1979.there were e'ecmc heatng instauatens mace en as the employment of succlemental 272 systems scid. The 6C0 mark :s now the L:LCO system in 1979. | ||
Line 332: | Line 199: | ||
)lI lh warrr air | )lI lh warrr air | ||
{ ll 5 5 warm. 'iiterec air rs circuiatec 5 3 | { ll 5 5 warm. 'iiterec air rs circuiatec 5 3 | ||
m li if | m li if u .. . | ||
u .. . | |||
Room a.r 3 accm air g - I | Room a.r 3 accm air g - I | ||
- 2 - l | - 2 - l | ||
' 4 1 | ' 4 1 | ||
--- 4 J y Ag | --- 4 J y Ag 4 *g g_q 4 - Ar ww The viectric heat pump is a unsque energy saving device capaDie of providing year rot.pd indoor comfort. In summer, the heat pump cools like a conventional central a.r condifloper. In w!nter, the cycle is automatic 2ff f reversed to provide space heating. | ||
3 | 3 | ||
I The Consumor Tums to Gas i versat hty allows tne cevetecment of cf teing cowered cy an energy form Whle tn? national oil succly cicture many .nncvatrve ways to ncrease tne tnat is not scie!y cepencent en again reacrec a cr:s:s cunng 1979. the e*f:c:ency and eccnemy cf :ts use In cetroieum. E'ectnc:ty may also be interstate naturai gas succly s:tuaten 1979. LILCO :ntrccucec two excen- cenvec frem ccal. nuc: ear. nycro- bngrtenec censreraciy. Animpcrtant trental energy storage systems for cower. refuse. anc. it tne h ture. from facter in this .mc .ement has cochng er heatir'g trat enacle resi- the sun or tne end. Eilectric venietes been the ecuatzation cf intrastate a.ng. | |||
i central users to transfer e'ectnc nave the furtner acvantage that tre arterstate gas ences. In aceton;,. | i central users to transfer e'ectnc nave the furtner acvantage that tre arterstate gas ences. In aceton;,. | ||
ccesumpt.cn frem cea< to cff ceak longest line their users need extencs cergress:enal at!gwance of higner penocs of cemand.Ccerat:en cf the only to tre nearest e!ectnc out!et. wei:nead cnces has st;mulatec gas two incecendent stcrage systems mil L!LCO has ceccme one of tnetargest exc:crat:crt !ncreased gas incustry te stucied in a total of 100 Long Island cwner-acministrators of an electne and feceralinterest in func:rg such ncmes in 1980 and 1981 The units use venicle f!eet in the Un.tec States. projects as c0al gas.ficat:en. deec efectnc.ty mainly dur:ng off-ceak Selectec in late 1978 as one of five cnlling and the extract:cn of gas from cences at nignt to reat er freeze water. initial contracters in the COE's national sna!e snculd improve future gas sup-whicn is then stored in scecial tan <s demons | ccesumpt.cn frem cea< to cff ceak longest line their users need extencs cergress:enal at!gwance of higner penocs of cemand.Ccerat:en cf the only to tre nearest e!ectnc out!et. wei:nead cnces has st;mulatec gas two incecendent stcrage systems mil L!LCO has ceccme one of tnetargest exc:crat:crt !ncreased gas incustry te stucied in a total of 100 Long Island cwner-acministrators of an electne and feceralinterest in func:rg such ncmes in 1980 and 1981 The units use venicle f!eet in the Un.tec States. projects as c0al gas.ficat:en. deec efectnc.ty mainly dur:ng off-ceak Selectec in late 1978 as one of five cnlling and the extract:cn of gas from cences at nignt to reat er freeze water. initial contracters in the COE's national sna!e snculd improve future gas sup-whicn is then stored in scecial tan <s demons | ||
Line 353: | Line 214: | ||
earners and cus.nesses the cifficulty generai purecse venic!e. Satisfying Customer Demands. | earners and cus.nesses the cifficulty generai purecse venic!e. Satisfying Customer Demands. | ||
in cttaining gascaine even threatened Totalmcf sales of gas to LILCO cus-f:nanc al cisaster E!ectne vehicles. temers in 1979 rose 3 8% above en tne cther hand, have tne advantage those in 1978. Firm gas sales in k s | in cttaining gascaine even threatened Totalmcf sales of gas to LILCO cus-f:nanc al cisaster E!ectne vehicles. temers in 1979 rose 3 8% above en tne cther hand, have tne advantage those in 1978. Firm gas sales in k s | ||
~ $ff; | ~ $ff; l .' ) d4- | ||
l .' ) d4- | |||
,p x . : ..; - , | ,p x . : ..; - , | ||
eW/m ? Kx ,.s | eW/m ? Kx ,.s | ||
,' ,, *)- [k. .' - | ,' ,, *)- [k. .' - | ||
sm4 | sm4 f f < = | ||
f f < = | |||
.d--* ; iim .NID n | .d--* ; iim .NID n | ||
. f4 . g ." 'g g wc , ,- | . f4 . g ." 'g g wc , ,- | ||
m n T. | m n T. | ||
j | j | ||
,~_"'. . | ,~_"'. . | ||
-n p.* - | -n p.* - | ||
5m | 5m | ||
.."'. ' y'p ... A s) ~: yg f ~4 | .."'. ' y'p ... A s) ~: yg f ~4 | ||
- | - | ||
* V * . j &jf Q e | * V * . j &jf Q e | ||
~.,"~ ~ | ~.,"~ ~ | ||
[p ' | [p ' | ||
' ' - '+ '? | ' ' - '+ '? | ||
-(* r" Ca .ag _!; V g | -(* r" Ca .ag _!; V g | ||
} | } | ||
* w-p: # , | * w-p: # , | ||
~' | ~' | ||
, .: 4 . | , .: 4 . | ||
so The costs shown aoove are LILCO estimates f * 'M - | |||
so | |||
The costs shown aoove are LILCO estimates f * 'M - | |||
..,2 L ,, -, . . | ..,2 L ,, -, . . | ||
of the annual total cost of energy for domestic A. 2 ., . ..- < | of the annual total cost of energy for domestic A. 2 ., . ..- < | ||
e - ' | e - ' | ||
o, . - - | o, . - - | ||
1 electricity, space, and water hosting for a | 1 electricity, space, and water hosting for a | ||
-+ s family of four in a 1.400 square foot ranch E. - .'w *- 4 ;' - ' - | -+ s family of four in a 1.400 square foot ranch E. - .'w *- 4 ;' - ' - | ||
N home on Long island based on LILCO s | |||
. -49 1 : | . -49 1 : | ||
7 - .?.. ~' electric and gae Mees in effect in January | 7 - .?.. ~' electric and gae Mees in effect in January | ||
,W' | ,W' | ||
',i [' v 1980 and tues de at 90c per gallon.No energy | ',i [' v 1980 and tues de at 90c per gallon.No energy | ||
' x ;y . k | ' x ;y . k | ||
. .. f% | . .. f% | ||
costs for 6 conditioning or for the costs of | costs for 6 conditioning or for the costs of | ||
.. a, -- -- - - - | .. a, -- -- - - - | ||
1 serv 6ce .ontracts are included. The com-partsLns show that the annual energy cost for | 1 serv 6ce .ontracts are included. The com-partsLns show that the annual energy cost for A neeghborhood cf !! e future is t.eing ilved in today by ffve families in Wacing River. Technology an oil-electric home using electric baseboard and nature team up to taen tfam comfortable. Eacn houss is equipped with a different rooftop Nsistance units for space heating is oetow solar penet system. BackH up oy an electric heet pump. The comoset, effletent heat pump that of the home using oil for space and water (arrows) can extract warmth from outside air, or reverse its cycle to coolinside temperatures. heating. The cost for an all-eiectric home L!LCC was instrumentaf in tre chetce of Long Island as the site forthis Cectrte Power Research ussng an ef ectric heat pump forspace heating | ||
A neeghborhood cf !! e future is t.eing ilved in today by ffve families in Wacing River. Technology an oil-electric home using electric baseboard and nature team up to taen tfam comfortable. Eacn houss is equipped with a different rooftop Nsistance units for space heating is oetow solar penet system. BackH up oy an electric heet pump. The comoset, effletent heat pump that of the home using oil for space and water (arrows) can extract warmth from outside air, or reverse its cycle to coolinside temperatures. heating. The cost for an all-eiectric home | |||
L!LCC was instrumentaf in tre chetce of Long Island as the site forthis Cectrte Power Research ussng an ef ectric heat pump forspace heating | |||
) Instftute (EP91) advanced research protect, conducted by Arthur o Littfe. Inc. As host utility, is approntmately 20% below that for the oil l LILCO will assist in collacttng extensive data during the next three to five years. EPRI willthen fueled horne and is comparable to thecost for | ) Instftute (EP91) advanced research protect, conducted by Arthur o Littfe. Inc. As host utility, is approntmately 20% below that for the oil l LILCO will assist in collacttng extensive data during the next three to five years. EPRI willthen fueled horne and is comparable to thecost for | ||
! puolish reports evaluating the retlebelity arid cost effectiveness of soiar homes, t home ing LILCO gas for space and 7 | ! puolish reports evaluating the retlebelity arid cost effectiveness of soiar homes, t home ing LILCO gas for space and 7 | ||
l I | |||
j Assuring Ll's Energy Supply l 1979 tctated 39.4 0:1!ien cucic feet, Gas Marketing Benefits. S.nce Electric Sales Flat. Cusicmer ccwn only 2.6% teicw 1978. cescite accut two-thircs of tre new gas scace efferts to conserve efectr:c:ty. the mucn more mccerate winter weatner in heat:ng customers aireacy nave gas contra:ng cevefecment of more effi-4 1979. Sales to interruct:0!e customers service to their remes. neir increased c:ent a:ctiances, anc slower growin in of 4 2 cillion cucic feet rose 170 5%. gas use recutres only a minimum tne poputaten of the LILCO service Due to !ne improving gas succly. L!LCO cacital expenc:ture by the Comcany. area nave ccmcined to mccerats-tne was granted cermissicn in 1978 by tne Consequent!y.this acc:tional gas growth cf e'ectnc:ty usage. T4ta! | j Assuring Ll's Energy Supply l 1979 tctated 39.4 0:1!ien cucic feet, Gas Marketing Benefits. S.nce Electric Sales Flat. Cusicmer ccwn only 2.6% teicw 1978. cescite accut two-thircs of tre new gas scace efferts to conserve efectr:c:ty. the mucn more mccerate winter weatner in heat:ng customers aireacy nave gas contra:ng cevefecment of more effi-4 1979. Sales to interruct:0!e customers service to their remes. neir increased c:ent a:ctiances, anc slower growin in of 4 2 cillion cucic feet rose 170 5%. gas use recutres only a minimum tne poputaten of the LILCO service Due to !ne improving gas succly. L!LCO cacital expenc:ture by the Comcany. area nave ccmcined to mccerats-tne was granted cermissicn in 1978 by tne Consequent!y.this acc:tional gas growth cf e'ectnc:ty usage. T4ta! | ||
PSC to add new gas customers anc ':usiness provices significant profit clowatt-noursales of elecinc:ty to a; low existing cusicmers to expanc cctential to the Cemeany's investers. customers en the LILCO system it; | PSC to add new gas customers anc ':usiness provices significant profit clowatt-noursales of elecinc:ty to a; low existing cusicmers to expanc cctential to the Cemeany's investers. customers en the LILCO system it; | ||
{ ineir f:rm recu:rements by an accitenal Censumers tenet:t. as well. since these 1979 remained at essentially the same l 16 cillion cucic feet of gas per year. add:tional gas sales have the efect cf levei as in 1978. Sales to res: cent:al i In Acnl 1979, again at tne request of screacing tne fixed costs cf the gas customers were 0.7% greater in 1979 l the Ocmpany.tne PSC autncnzed an supply system. The icng- range r esult than those in 1978. The amount of j increase to allow a tctal annual firm is lower consumer rates than would electric:ty scid to ecmmerc:al-i sencout of 44 tiilien cucic feet. In cinerwise be possic!e. industnalcustomers rose 0.5% Sales Octccer 1979. this sencout level was to all other customers.wnd furtner increasec to 46 bdlien vstem sales cucic feet. A tctal of 27.000 customers recresented cf e!ectnc:ty. were 4.6%cown cf total 6 c s,%. | { ineir f:rm recu:rements by an accitenal Censumers tenet:t. as well. since these 1979 remained at essentially the same l 16 cillion cucic feet of gas per year. add:tional gas sales have the efect cf levei as in 1978. Sales to res: cent:al i In Acnl 1979, again at tne request of screacing tne fixed costs cf the gas customers were 0.7% greater in 1979 l the Ocmpany.tne PSC autncnzed an supply system. The icng- range r esult than those in 1978. The amount of j increase to allow a tctal annual firm is lower consumer rates than would electric:ty scid to ecmmerc:al-i sencout of 44 tiilien cucic feet. In cinerwise be possic!e. industnalcustomers rose 0.5% Sales Octccer 1979. this sencout level was to all other customers.wnd furtner increasec to 46 bdlien vstem sales cucic feet. A tctal of 27.000 customers recresented cf e!ectnc:ty. were 4.6%cown cf total 6 c s,%. | ||
acetiec ,n 1979 for new cr accitenal Comcany forecasters excect LILCO's d | acetiec ,n 1979 for new cr accitenal Comcany forecasters excect LILCO's d | ||
gas use. These acchcatens were system kWh sales cf e!ecinc:ty to enmanly fer ccnversion from cil to gas increase an average of 16% annually | gas use. These acchcatens were system kWh sales cf e!ecinc:ty to enmanly fer ccnversion from cil to gas increase an average of 16% annually fcr resicertial space and not water over the next five years, with slower reat.ng. Cunng 1979. tne numcer of growth in the early years and nigner | ||
fcr resicertial space and not water over the next five years, with slower | |||
reat.ng. Cunng 1979. tne numcer of growth in the early years and nigner | |||
! L:LCO gas scace heating customers growin in the later years. Ref:ectng the was increasec 5.600. This was the precicted recess:cnary economy, total l largest increase since 1969. Gas system kWh salesin 1980areexcected neating ecuicment suppliers and to remain level with these in 1979 | ! L:LCO gas scace heating customers growin in the later years. Ref:ectng the was increasec 5.600. This was the precicted recess:cnary economy, total l largest increase since 1969. Gas system kWh salesin 1980areexcected neating ecuicment suppliers and to remain level with these in 1979 | ||
!! censed contractor personnel were nct and 1978. | !! censed contractor personnel were nct and 1978. | ||
Line 453: | Line 268: | ||
cef ays. By the end cf 1979, newever. This was Celcw the 1978 peak cf i | cef ays. By the end cf 1979, newever. This was Celcw the 1978 peak cf i | ||
the ccmpletion rate of gas neatng 2.997.000 kW. The all-time Company insta'tations had increased peak of 3.107.000 kW was set s:gruf;cantly. It acpears that this July 21,1977. following a pened of stected-up pace can be maintained very het weatner whicn was not tnroughout 1980. repeated in e:ther 1978 cr 1979. | the ccmpletion rate of gas neatng 2.997.000 kW. The all-time Company insta'tations had increased peak of 3.107.000 kW was set s:gruf;cantly. It acpears that this July 21,1977. following a pened of stected-up pace can be maintained very het weatner whicn was not tnroughout 1980. repeated in e:ther 1978 cr 1979. | ||
Annual Change in Number of Lil.CO t ' 3 Gas Space Heating Customers 7.000 enemmme k .fl ' | Annual Change in Number of Lil.CO t ' 3 Gas Space Heating Customers 7.000 enemmme k .fl ' | ||
a | a g~ | ||
g~ | |||
'e g 6 000 | 'e g 6 000 | ||
(% | (% | ||
t, .? | t, .? | ||
: 2. , | : 2. , | ||
, h.~ | , h.~ | ||
c | c j, | ||
5400 ,e . | |||
j, 5400 ,e | |||
.l l.-- ,,, | .l l.-- ,,, | ||
.i' - < - | .i' - < - | ||
\ , | \ , | ||
Line 480: | Line 283: | ||
- [. | - [. | ||
.\ . | .\ . | ||
r '- - | r '- - | ||
p3 | p3 | ||
~ | ~ | ||
3.000 %g ,,,,, n 1 . | 3.000 %g ,,,,, n 1 . | ||
g_ | g_ | ||
\ | \ | ||
~ | ~ | ||
i - | i - | ||
Line 496: | Line 296: | ||
\ j * - | \ j * - | ||
l . | l . | ||
.( | .( | ||
1 gD , | 1 gD , | ||
Line 502: | Line 301: | ||
69 71 73 75 V | 69 71 73 75 V | ||
77 d | 77 d | ||
)$*~ b | )$*~ b | ||
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{ -[ | { -[ | ||
. h.1 " | . h.1 " | ||
' . _ .. -s . <. | ' . _ .. -s . <. | ||
In 1969, the numoer of gas space heating ! . | |||
customers served by ULCO increased by , | customers served by ULCO increased by , | ||
7.000. Fewer customers were added annually . ? *4 F* - | 7.000. Fewer customers were added annually . ? *4 F* - | ||
Line 521: | Line 315: | ||
~ | ~ | ||
nurnber served declined by 400.These > | nurnber served declined by 400.These > | ||
, p , | , p , | ||
changes resulted from restrictions against ' | changes resulted from restrictions against ' | ||
,, . ., y adding new customers combined with - | ,, . ., y adding new customers combined with - | ||
-D - | -D - | ||
.Ph *- | .Ph *- | ||
~~ | ~~ | ||
~w - | ~w - | ||
* 1 V normal attritton. Increased avai? ability of d- - | * 1 V normal attritton. Increased avai? ability of d- - | ||
-- ' ' O natural gas supplies enacted ULCO to obta n regulatory aDoroval to resume adding gas | -- ' ' O natural gas supplies enacted ULCO to obta n regulatory aDoroval to resume adding gas j- - . e - ,' r load in 1978. As a resuit,the number of | ||
j- - . e - ,' r load in 1978. As a resuit,the number of | |||
* P W ' 'M '#" | * P W ' 'M '#" | ||
as ace ating customers increased by and water heating. Here. a ULCO serviceman inspects one of the new gas furnaces installed by customers dur+ng 1979. Improvement in gas supply has enacled ULCO to add new and conversion gas heating customers seeking an altemative to oil 8 | as ace ating customers increased by and water heating. Here. a ULCO serviceman inspects one of the new gas furnaces installed by customers dur+ng 1979. Improvement in gas supply has enacled ULCO to add new and conversion gas heating customers seeking an altemative to oil 8 | ||
i | i | ||
l . | l . | ||
l | l | ||
! l I | ! l I | ||
! Service Area Economy Holding constructen was uc $4 9 milken to Other LILCO ::ersonnel nave cen- | ! Service Area Economy Holding constructen was uc $4 9 milken to Other LILCO ::ersonnel nave cen- | ||
Line 553: | Line 335: | ||
area ne:c uc well n 1979. cescite tre Suffcik area Ameng maict crc;ects are Committee and tc tre wice network of pressures of nsmg ir:rerest rates anc a 222-recm Sheraten inn. r cw under etner regicnal ceve'ccr ent gret::s. | area ne:c uc well n 1979. cescite tre Suffcik area Ameng maict crc;ects are Committee and tc tre wice network of pressures of nsmg ir:rerest rates anc a 222-recm Sheraten inn. r cw under etner regicnal ceve'ccr ent gret::s. | ||
centnumg intiaten. In 1979. a total cf constructen. and a clannec 210-rcem sucn as tne Lerg Islanc Area Ceveice-i 94 new .ncustnal clants anc ware. Hnten Inn. Devetccment of a $65 m:ilien, ment Agency anc the Long !s: arc..- l nouses were ccenec in the LILCO 800.000-scuare 'cet. inree-tcwer Asscciat:en of Commerce anc__ . < | centnumg intiaten. In 1979. a total cf constructen. and a clannec 210-rcem sucn as tne Lerg Islanc Area Ceveice-i 94 new .ncustnal clants anc ware. Hnten Inn. Devetccment of a $65 m:ilien, ment Agency anc the Long !s: arc..- l nouses were ccenec in the LILCO 800.000-scuare 'cet. inree-tcwer Asscciat:en of Commerce anc__ . < | ||
service area and cperaticns of 257 ct' ice ccm:: lex near tre Nassau Incustry. These groucs work in I | service area and cperaticns of 257 ct' ice ccm:: lex near tre Nassau Incustry. These groucs work in I r-cre were excanced. ::revicmg em- Veterans Memenal Col:seurn was concert to ana!yze prec: ems. esta::lisn picyment for 7.900 ::eccle. Overail anncunced in January 1980.In acciten. pncr: ties for the present anc the future, emcicyment among Nassau-Suffeik an 1.100-acre ccmclex is clannec fer and implement programs to rneet the resicents was 1.235.0C0 in Decemcer Yacnanx tnat would inc:uce a sneccing challenges fac:rg L0ng Islanc. | ||
1979. u: 23.900 from a year earber. center, an effice cu:Icmg a researen The Nuclear Advantage. LlLCO and tre unempicyment rate was anc ceveiccment park. ccncem:niums. excects to succly accut 3C% of ,ts 6 Oct. accoramg to tre New Ycrk State and a retirement community. The first service area's e!ectnc:ty neecs witn | |||
r-cre were excanced. ::revicmg em- Veterans Memenal Col:seurn was concert to ana!yze prec: ems. esta::lisn picyment for 7.900 ::eccle. Overail anncunced in January 1980.In acciten. pncr: ties for the present anc the future, emcicyment among Nassau-Suffeik an 1.100-acre ccmclex is clannec fer and implement programs to rneet the resicents was 1.235.0C0 in Decemcer Yacnanx tnat would inc:uce a sneccing challenges fac:rg L0ng Islanc. | |||
1979. u: 23.900 from a year earber. center, an effice cu:Icmg a researen The Nuclear Advantage. LlLCO and tre unempicyment rate was anc ceveiccment park. ccncem:niums. excects to succly accut 3C% of ,ts | |||
6 Oct. accoramg to tre New Ycrk State and a retirement community. The first service area's e!ectnc:ty neecs witn | |||
. Decartment of Lacer This rate ccm- technc!cgy park in N ew York State.to ::e nuclear generation ey tne early 1980's. | . Decartment of Lacer This rate ccm- technc!cgy park in N ew York State.to ::e nuclear generation ey tne early 1980's. | ||
cares etn tne 7 Cet uremcicyment kncwn as Steny Brec<naven Teen Park. The 320.000 kW Shcrenam Nuc! ear rate fcr New Ycr< State and tre 5 6% s ::lannec for ceverccmert en a Pcwer Stat:en will recuce tne Cem- | cares etn tne 7 Cet uremcicyment kncwn as Steny Brec<naven Teen Park. The 320.000 kW Shcrenam Nuc! ear rate fcr New Ycr< State and tre 5 6% s ::lannec for ceverccmert en a Pcwer Stat:en will recuce tne Cem- | ||
Line 567: | Line 345: | ||
: f. -. | : f. -. | ||
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Line 582: | Line 356: | ||
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Line 602: | Line 368: | ||
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Line 614: | Line 377: | ||
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l Going aneed at the crossroede is construction of the new three-euilding office cornp6ex of The Jencno Quadrangle at theintersection ottwo maior Long Island highways. The first building, shown here. Will add 230.000 square feet of new office space to the area s economy, and is essentiaily complete. The second building is currentfy under construction. All tfree of these ous! dings will use electnc heat pumps for heating and cooling, with LILCO gas for sucosemental tectuo. Across the street. a thre+ siory. 320.000-square.ioot office euilding. to be called Num Der Two Jerter'o Plaza.ls under construction for occupancy by the scring of 1980. Tha will to a companion to Numeer one Jencno Ptaza, a 278.0CO square-foot building occup.ed in mio-197s. soth of these euisoings are electriesity heated. | l Going aneed at the crossroede is construction of the new three-euilding office cornp6ex of The Jencno Quadrangle at theintersection ottwo maior Long Island highways. The first building, shown here. Will add 230.000 square feet of new office space to the area s economy, and is essentiaily complete. The second building is currentfy under construction. All tfree of these ous! dings will use electnc heat pumps for heating and cooling, with LILCO gas for sucosemental tectuo. Across the street. a thre+ siory. 320.000-square.ioot office euilding. to be called Num Der Two Jerter'o Plaza.ls under construction for occupancy by the scring of 1980. Tha will to a companion to Numeer one Jencno Ptaza, a 278.0CO square-foot building occup.ed in mio-197s. soth of these euisoings are electriesity heated. | ||
9 | 9 | ||
i . | i . | ||
i l Presicent Carter to investgate the actng on the Commissions and the plant. !n chase twc.the Commission acc: cent. issueo .ts report. A main incustry's recommencaticns as tney wdlinvestgate the reasonacieness find:ng of its review was that "the pertain to the Ccmcany's ccerat: ens t and crucence of the ccst of the fundamental preclems are peccle- is also concuctng an exnaustive Shcrenan plant and determine if any re!atec prootems and net equicment review cf its own to icentfy acciteral of the ecst snou!c be excluced f cm proc ems. The rescrt also recom- pctential areas for safety improvement. the Comcany's rate case. | |||
i l Presicent Carter to investgate the actng on the Commissions and the plant. !n chase twc.the Commission | |||
acc: cent. issueo .ts report. A main incustry's recommencaticns as tney wdlinvestgate the reasonacieness find:ng of its review was that "the pertain to the Ccmcany's ccerat: ens t and crucence of the ccst of the fundamental preclems are peccle- is also concuctng an exnaustive Shcrenan plant and determine if any re!atec prootems and net equicment | |||
review cf its own to icentfy acciteral of the ecst snou!c be excluced f cm proc ems. The rescrt also recom- pctential areas for safety improvement. the Comcany's rate case. | |||
mended " fundamental enanges"in tre Constructen of the Shcrenam Other Nuclear Projects.LtLChad government's regulaten of the nuclear Nuclear Power Staten is expected to planned to cuild two 1.150.0GRW incustry and in tre nuclear :ccustry be completed in 1981. However, nt clear units it Jamesecrt to be itseif. On Cecember 7,1979. the cceration of the clant is sucject to the snarec ecually wdh New YcrK State President's resocnse to tne recort issuance of an operatnglicense cythe E!ectt:c and Gas Cerceration (NYSEG). | mended " fundamental enanges"in tre Constructen of the Shcrenam Other Nuclear Projects.LtLChad government's regulaten of the nuclear Nuclear Power Staten is expected to planned to cuild two 1.150.0GRW incustry and in tre nuclear :ccustry be completed in 1981. However, nt clear units it Jamesecrt to be itseif. On Cecember 7,1979. the cceration of the clant is sucject to the snarec ecually wdh New YcrK State President's resocnse to tne recort issuance of an operatnglicense cythe E!ectt:c and Gas Cerceration (NYSEG). | ||
inc:cated that steps will te taken to NRC. As a consecuence of Three On January 29.1980. a New Ycrk State implement many of the recem. Mile Island, the NRC staff has been Scard en E!ectnc Generation Siting and mencations. The Pres; cent reiterated diverted from its normal nuc! ear plant tne Environment vcted to accreve the i | inc:cated that steps will te taken to NRC. As a consecuence of Three On January 29.1980. a New Ycrk State implement many of the recem. Mile Island, the NRC staff has been Scard en E!ectnc Generation Siting and mencations. The Pres; cent reiterated diverted from its normal nuc! ear plant tne Environment vcted to accreve the i | ||
that nuc ear power must ce included licensing activites. Thus. the timing construction and s: ting of an 800 among the naton's energy cptions. cf receipt of the Shoreham ccerating megawatt coal-fired generat:ng station In January 1980, an incecendent license remains uncerta:n. A rev:ew to on Lcng istand to meet the require-crcup commiss;cred by the Nuclear eva!uate the cessittlities of further ments cf NYSEG and the Company. | that nuc ear power must ce included licensing activites. Thus. the timing construction and s: ting of an 800 among the naton's energy cptions. cf receipt of the Shoreham ccerating megawatt coal-fired generat:ng station In January 1980, an incecendent license remains uncerta:n. A rev:ew to on Lcng istand to meet the require-crcup commiss;cred by the Nuclear eva!uate the cessittlities of further ments cf NYSEG and the Company. | ||
Aegulatory Ccmmissien (NRC) to celays and accit!ccal prcject costs A:thougn the Sitng Scard nas not | Aegulatory Ccmmissien (NRC) to celays and accit!ccal prcject costs A:thougn the Sitng Scard nas not | ||
Line 647: | Line 394: | ||
intercompany safety information, to perfcrm an audit to evaluate LILCO's On Octeter 12.1979, a State S1 ting uegraced plant operater training, and construction schecule and projectec Board cismissed the joint acclication improvec safety engineent'g. LILCO is expenc:tures for tne ccmp! sten of by NYSEG and LILCO to tuild two N | intercompany safety information, to perfcrm an audit to evaluate LILCO's On Octeter 12.1979, a State S1 ting uegraced plant operater training, and construction schecule and projectec Board cismissed the joint acclication improvec safety engineent'g. LILCO is expenc:tures for tne ccmp! sten of by NYSEG and LILCO to tuild two N | ||
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, $ m s,,.,: y~ ,- - | , $ m s,,.,: y~ ,- - | ||
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Q.' L * {'.7 " -} ; *in- | Q.' L * {'.7 " -} ; *in- | ||
Line 678: | Line 409: | ||
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r x- 4 | r x- 4 | ||
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Line 714: | Line 427: | ||
k | k | ||
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&W con.trucuan or in. sner.n.m Nuci.., po.., st. tion .. on .en. oui. ror co,npi. tion in ise t. snor.n m ... o..ign.d net enir to b. . ..v. n.ignbar but .4 0 to DMnd .. much .. pos.ibi. witn tn. noc.i environm.nt. | &W con.trucuan or in. sner.n.m Nuci.., po.., st. tion .. on .en. oui. ror co,npi. tion in ise t. snor.n m ... o..ign.d net enir to b. . ..v. n.ignbar but .4 0 to DMnd .. much .. pos.ibi. witn tn. noc.i environm.nt. | ||
10 | 10 | ||
i | i | ||
.\ | .\ | ||
l j nuc: ear generat:rg units at the upsta!e test:fied cn the crciv!ed effect of nigner cost. | l j nuc: ear generat:rg units at the upsta!e test:fied cn the crciv!ed effect of nigner cost. | ||
I New Ycrx comfrun:ty cf New Haven. the SEO plan.lf the SEO recommenca- Cn January 2.1980.tneCCEissued a | I New Ycrx comfrun:ty cf New Haven. the SEO plan.lf the SEO recommenca- Cn January 2.1980.tneCCEissued a | ||
; NYSEG anc LILCO nave requestec a tons to sucst:tute a coal un;t for the procesed crcer wnien. .f ultimateiy l reneanng en ths acclicaticn. planced Jamesect; nue: ear units anc acceteo. aculd pronibit the turning of | ; NYSEG anc LILCO nave requestec a tons to sucst:tute a coal un;t for the procesed crcer wnien. .f ultimateiy l reneanng en ths acclicaticn. planced Jamesect; nue: ear units anc acceteo. aculd pronibit the turning of | ||
! LILCO has an 18% :nterest in N:ne to ccnvert existmg L!LCO cd-firec cil at tr e fcur eiectnc generatmg urnis i' | ! LILCO has an 18% :nterest in N:ne to ccnvert existmg L!LCO cd-firec cil at tr e fcur eiectnc generatmg urnis i' | ||
Mde Point Un;t 2. a nucl ear generatirg plants to C0a! were f0llcwed. :t wculd at Ncrttccrt. The Cct cany is ;n.tae-plant te ng constructed near Oswego. ccst Long Islancers an accit:enal $10 prccess Of precanng an analysMo te | Mde Point Un;t 2. a nucl ear generatirg plants to C0a! were f0llcwed. :t wculd at Ncrttccrt. The Cct cany is ;n.tae-plant te ng constructed near Oswego. ccst Long Islancers an accit:enal $10 prccess Of precanng an analysMo te New York cy Niagara Mohawk Power billion in nrgner elecinc costs over a submitted to CO E ceta;fing tne ef*ects of Ccrocrat:en. This unit. now estimated to 30-year pence L:LCO atso stressed converting these units to coal. | ||
; be accut one-thirc complete. is that the aestnetic anc environmental Fuel Supply. The Comcany's cen-scneduled to aca 194.000 <W cf gen- impacts of coal plants must ce g:ven sumption of oilto generate e! ectr:c:ty eratmg capac:ty to LILCO's system. sencus consiceration. averages accut 50 thcusand barrels l On January 30,1980. Niagara The coal versus nuclear fuel cuest;en per day. A:1 types of fuel oilusec by Menawk announced a revised con- was also raised by the Suffolk County L!LCO have increased substart aily in struction scnedule wnsen projects a Legit. : Nre The county lawmakers pnce dunng the past year with 0.37% | |||
New York cy Niagara Mohawk Power billion in nrgner elecinc costs over a submitted to CO E ceta;fing tne ef*ects of | l celay in the cor imercial cceratton cate askes _CO to examine the feasibility !cw sulfur residual cri-the highest in from l ate 1984 to ! ate 1986. Niagara cfco- tng the Shcrenam Nuc' ear cost-coucling frcm $15 a barrelin Men e .s a!so reevaluatmg tre P0we tien to coal The resuits of Decemcer 1978 to $30 in Decemter plantt ;cnstruction ecsts. the stu - snowed that such a " con- 1979. Ccntinual ef*cris are ceing made Cos ,r Nuclear Energy.in August versicn in tne usual sense cf tne term tocecreasecuruseettren:gner enced 1979. the New York State Energy was impractical. Changmg Shoreham fuel cils. One acpreach !S to cisciace j Cft:ce's (SEC) Draft Energy Master frem nuc! ear to coal would require higrer-pnced cil utn natural gas. An P'an was released.The recert reccg- scraccmq the nearly ccmcleted extension of federal regulations will te i ntzed a statewice need fer rew pcwer nuc! ear plant and buildmg a new coal recu: red to allow the Company to buy plants net cepencent upon cil. It recem- unit of ccmcaratie s;ze. Over the hfe gas specifically fer this purpose from mencec. however. that except for these o'the plant, this would ecst Long sources outs:de New York State after | ||
Ccrocrat:en. This unit. now estimated to 30-year pence L:LCO atso stressed converting these units to coal. | |||
; be accut one-thirc complete. is that the aestnetic anc environmental Fuel Supply. The Comcany's cen- | |||
scneduled to aca 194.000 <W cf gen- impacts of coal plants must ce g:ven sumption of oilto generate e! ectr:c:ty eratmg capac:ty to LILCO's system. sencus consiceration. averages accut 50 thcusand barrels l On January 30,1980. Niagara The coal versus nuclear fuel cuest;en per day. A:1 types of fuel oilusec by | |||
Menawk announced a revised con- was also raised by the Suffolk County L!LCO have increased substart aily in struction scnedule wnsen projects a Legit. : Nre The county lawmakers pnce dunng the past year with 0.37% | |||
l | |||
celay in the cor imercial cceratton cate askes _CO to examine the feasibility !cw sulfur residual cri-the highest in from l ate 1984 to ! ate 1986. Niagara cfco- tng the Shcrenam Nuc' ear cost-coucling frcm $15 a barrelin Men e .s a!so reevaluatmg tre P0we tien to coal The resuits of Decemcer 1978 to $30 in Decemter plantt ;cnstruction ecsts. the stu - snowed that such a " con- 1979. Ccntinual ef*cris are ceing made Cos ,r Nuclear Energy.in August versicn in tne usual sense cf tne term tocecreasecuruseettren:gner enced 1979. the New York State Energy was impractical. Changmg Shoreham fuel cils. One acpreach !S to cisciace j Cft:ce's (SEC) Draft Energy Master frem nuc! ear to coal would require higrer-pnced cil utn natural gas. An P'an was released.The recert reccg- scraccmq the nearly ccmcleted extension of federal regulations will te i ntzed a statewice need fer rew pcwer nuc! ear plant and buildmg a new coal recu: red to allow the Company to buy plants net cepencent upon cil. It recem- unit of ccmcaratie s;ze. Over the hfe gas specifically fer this purpose from mencec. however. that except for these o'the plant, this would ecst Long sources outs:de New York State after | |||
, now uncer construct;cn (inciucing Islancers $9.6 tillion more than May 31.1980. A second acproach :s to i Shcreham and Nire Mile Point Unit 2) finishing Shcreham as planned. This cctain permission to curn higher sulfur any future umts should be coal rather estimate inc!udes the ccst of replace- cil in Nassau County. Such permiss:cn j than nue: ear fueied.The state plan also ment electne:ty generated by oil has teen cbtained from New YorkState, inctuced reccmmendations that plants durmg the seven-year de!ay unt:1 tut federal approval :s also required. | , now uncer construct;cn (inciucing Islancers $9.6 tillion more than May 31.1980. A second acproach :s to i Shcreham and Nire Mile Point Unit 2) finishing Shcreham as planned. This cctain permission to curn higher sulfur any future umts should be coal rather estimate inc!udes the ccst of replace- cil in Nassau County. Such permiss:cn j than nue: ear fueied.The state plan also ment electne:ty generated by oil has teen cbtained from New YorkState, inctuced reccmmendations that plants durmg the seven-year de!ay unt:1 tut federal approval :s also required. | ||
LILCO's exist:ng cil-fired ure a the coal plant would be reacy for The Company is hccefulthat .t will Nortrpcrt. Island Park, ary Fcrt cperaticn.The de!ay would also receive this feceral permission shortly. | LILCO's exist:ng cil-fired ure a the coal plant would be reacy for The Company is hccefulthat .t will Nortrpcrt. Island Park, ary Fcrt cperaticn.The de!ay would also receive this feceral permission shortly. | ||
Line 753: | Line 445: | ||
1 | 1 | ||
! ,7.- .a-. a .. - ,. - - m. -~ g Electric System Energy Sales | ! ,7.- .a-. a .. - ,. - - m. -~ g Electric System Energy Sales | ||
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I J. ) 71 ~3 75 9 3 33 84 | I J. ) 71 ~3 75 9 3 33 84 | ||
?'^c-- g (, 1. ' ; '' | ?'^c-- g (, 1. ' ; '' | ||
Reffecting conservation of energy and | Reffecting conservation of energy and | ||
-gw - (1- reY,. ..y 4 | -gw - (1- reY,. ..y 4 | ||
~ %y s4a j ;Sy;_v T-;}d; w . ,- . ._n' q1 ' / cooler than normai summer weather. total p' . :N-/;,. | |||
~ %y s4a j ;Sy;_v T-;}d; w . ,- . ._n' | |||
. . .a | . . .a | ||
. Jr" p% c g r.,"J Q_ j n ". *' - . | . Jr" p% c g r.,"J Q_ j n ". *' - . | ||
Line 806: | Line 480: | ||
- ,' e | - ,' e | ||
:j =3 ]g5' g? : ,f kWh sales of electricity in 1979 remained | :j =3 ]g5' g? : ,f kWh sales of electricity in 1979 remained | ||
( g( - t (, ; ~ < - ts - . - essentially the same as in 1978. sales to | ( g( - t (, ; ~ < - ts - . - essentially the same as in 1978. sales to 8 | ||
8 | |||
q} | q} | ||
-s. | -s. | ||
. g .. r . r M 4 .* residentialcustomers. As%of totalsales,were | . g .. r . r M 4 .* residentialcustomers. As%of totalsales,were | ||
Line 818: | Line 488: | ||
, c | , c | ||
,#g E $ 7 # - 2qg.- | ,#g E $ 7 # - 2qg.- | ||
4-. | 4-. | ||
W ,i.b ' ' de. a f,Q1 -- | W ,i.b ' ' de. a f,Q1 -- | ||
Line 832: | Line 499: | ||
j k.74 ' ' p %.. ,dy:,4..( N p g, .# ** go. ."k -}. | j k.74 ' ' p %.. ,dy:,4..( N p g, .# ** go. ."k -}. | ||
je '# 1960, total sales are expected to remain at 4 z- . .. . . . . . , . . . _. | je '# 1960, total sales are expected to remain at 4 z- . .. . . . . . , . . . _. | ||
v | v | ||
. .N, | . .N, | ||
. 4 ~. 4 M.. | . 4 ~. 4 M.. | ||
.e I -[ y [. .M.. | .e I -[ y [. .M.. | ||
j s .$ 5 presem levels. in accord with recessionary economic forecasts. Total system sales are The Garden City Gate station is one of three maior system entry points for the natural gas estimated to increase 4.3% from 1979 to 1964. | j s .$ 5 presem levels. in accord with recessionary economic forecasts. Total system sales are The Garden City Gate station is one of three maior system entry points for the natural gas estimated to increase 4.3% from 1979 to 1964. | ||
ULCO ourenases from its pip *Ine suppliers. Pipcine supolies plus ULCO storage facilities assure the Company's firm gas customers of adequate gas under the most severe winter weather Conditions. | ULCO ourenases from its pip *Ine suppliers. Pipcine supolies plus ULCO storage facilities assure the Company's firm gas customers of adequate gas under the most severe winter weather Conditions. | ||
11 | 11 | ||
l . | l . | ||
I | I | ||
! Looking Furthar Ahead | ! Looking Furthar Ahead | ||
) fuel the Shcreram Nuclear Power Industry-Wide Research. L!LCO's of partcular value to tne state.The | ) fuel the Shcreram Nuclear Power Industry-Wide Research. L!LCO's of partcular value to tne state.The | ||
: Staten througn ts first three years colectve is to find ways to prov ce tne New YcrK State Energy Pesearen arc j cf cceraten. In accition, the Bokum most reliase. ecencmical, and env rcn- Develocment Authenty (NYSERDA) j Resources Cerceraton nas centractec mentally acceptatte energy pessible a:se succerts a creac range ef tecnnical | : Staten througn ts first three years colectve is to find ways to prov ce tne New YcrK State Energy Pesearen arc j cf cceraten. In accition, the Bokum most reliase. ecencmical, and env rcn- Develocment Authenty (NYSERDA) j Resources Cerceraton nas centractec mentally acceptatte energy pessible a:se succerts a creac range ef tecnnical to succly ULCO w:tn 10 meicn pouncs w:th tocay's tecnnotcgy. At the same researen anc ceve!coment prciects to l cf uranium concentrates. This is suf- tme :t is explcnng.incividually and cevec; future energy sucdies ac:1to i fic:ent to fuei Shcrenam tnrougncut with other ccmcan:es, tne tecnncicgy cromote e":c:ent energy uselcr.. | ||
to succly ULCO w:tn 10 meicn pouncs w:th tocay's tecnnotcgy. At the same researen anc ceve!coment prciects to l cf uranium concentrates. This is suf- tme :t is explcnng.incividually and cevec; future energy sucdies ac:1to i fic:ent to fuei Shcrenam tnrougncut with other ccmcan:es, tne tecnncicgy cromote e":c:ent energy uselcr.. | |||
i its cceraung life. Celivenes were cf the future. A total of 56 8 million New Ycrx State.TheCcmcanycrovided scheculec to tegin in 1979, but Bckum was committed by L!LCO last year to a total cf $1.9 millicn toward ESEERCO l has been unacle to meet this anc ciner lccal and incustry-wide researen. and NYSERDA activites in 1979. | i its cceraung life. Celivenes were cf the future. A total of 56 8 million New Ycrx State.TheCcmcanycrovided scheculec to tegin in 1979, but Bckum was committed by L!LCO last year to a total cf $1.9 millicn toward ESEERCO l has been unacle to meet this anc ciner lccal and incustry-wide researen. and NYSERDA activites in 1979. | ||
i contract commitments. (See Note 7 to At the catenailevel,tne Eectnc ULCO also succerts the procrams l Notes to Financ:al Statements). Pcwer Research Insttute (EPRI),which of the Gas Research InsttutMdRI). | i contract commitments. (See Note 7 to At the catenailevel,tne Eectnc ULCO also succerts the procrams l Notes to Financ:al Statements). Pcwer Research Insttute (EPRI),which of the Gas Research InsttutMdRI). | ||
The tnal nas teen concluded and a came into being in 1972 under the Organized in 1976, GRrs effor.3 l cecision is penc:ng in the litgaticn voluntary sponscrsn:p of the natien's are aimed at increasing tne succly, | The tnal nas teen concluded and a came into being in 1972 under the Organized in 1976, GRrs effor.3 l cecision is penc:ng in the litgaticn voluntary sponscrsn:p of the natien's are aimed at increasing tne succly, | ||
! against the Wesungncuse Ccrcorat:cn electnc utility incustry, is increasingly imcroving the transecrtation, anc i over centractual agreements to deliver c:rectng its research strategy toward ennancing the effic:ent use er gasecus I a mer um cf 8 3 million pcunes of icentfy:ng and cevelocing imcrove- fuets. ULCO's supccrt of these cro-i uran,um ccr,centrates to L:LCO. Mean- ments in present tecnnciogy to grams amcunted to 50.2 rr,nlien in 1979. | ! against the Wesungncuse Ccrcorat:cn electnc utility incustry, is increasingly imcroving the transecrtation, anc i over centractual agreements to deliver c:rectng its research strategy toward ennancing the effic:ent use er gasecus I a mer um cf 8 3 million pcunes of icentfy:ng and cevelocing imcrove- fuets. ULCO's supccrt of these cro-i uran,um ccr,centrates to L:LCO. Mean- ments in present tecnnciogy to grams amcunted to 50.2 rr,nlien in 1979. | ||
anne et'cris contnue to reacn a allev ate current problems. Eetween !n 1979 S2.5 millicn wes scent fcr sett:ement. 50% and 60% cf ;ts 1979 excencitures of ULCO's internal researc 1 anc ceveico- | anne et'cris contnue to reacn a allev ate current problems. Eetween !n 1979 S2.5 millicn wes scent fcr sett:ement. 50% and 60% cf ;ts 1979 excencitures of ULCO's internal researc 1 anc ceveico-5200 miilion were devoted to this ment programs. A cost-;enefit analys:s empnasis.Other lcng-term EPRI cf these program; fron 1973 tnrcugn | ||
5200 miilion were devoted to this ment programs. A cost-;enefit analys:s empnasis.Other lcng-term EPRI cf these program; fron 1973 tnrcugn | |||
! actvites inc!uce investgaten of 1979 snewec resudant savings cf l emerging energy sources, including almost S320 millien in ' 979 ccIlars. | ! actvites inc!uce investgaten of 1979 snewec resudant savings cf l emerging energy sources, including almost S320 millien in ' 979 ccIlars. | ||
fusion, fluidizec cec comcustien, aceut a ninefold return cf ir ut:al researen l | fusion, fluidizec cec comcustien, aceut a ninefold return cf ir ut:al researen l | ||
Line 869: | Line 525: | ||
! Empire State Eectnc Energy Research same tme maintaining acceptable l Ccrocration (ESEERCO) enables !evels of air quality. Significant ongoing ULCO and ciner Ne'u York utilities savings are expected trem EQUAC and l to pccitheir resources and succort a numcer cf ctner projects. | ! Empire State Eectnc Energy Research same tme maintaining acceptable l Ccrocration (ESEERCO) enables !evels of air quality. Significant ongoing ULCO and ciner Ne'u York utilities savings are expected trem EQUAC and l to pccitheir resources and succort a numcer cf ctner projects. | ||
j prclects of ccmmon interest whicn are i | j prclects of ccmmon interest whicn are i | ||
gr 0 *. n | |||
gr | |||
0 *. n | |||
.I P . | .I P . | ||
) | ) | ||
mAm~Qtc:. t. . - | mAm~Qtc:. t. . - | ||
~~ ~ h. | ~~ ~ h. | ||
-e. | -e. | ||
.g , | .g , | ||
5: {' 16: | 5: {' 16: | ||
Line 899: | Line 536: | ||
5 . . | 5 . . | ||
Reaching actosa 100 years, a littte boy presses a button and sees the new light Thomas Alva Edison gave to the world In 1879, when he invented the first practical Incancescent lamp. Long Islanders can still see LILCo's Centennial af Light estubits at local schools,librartes, and other pubile facilities oisotayed are electric lights, acpliances,and toys that have made people's lives easier, better, and more fun during the last century, t2 l | Reaching actosa 100 years, a littte boy presses a button and sees the new light Thomas Alva Edison gave to the world In 1879, when he invented the first practical Incancescent lamp. Long Islanders can still see LILCo's Centennial af Light estubits at local schools,librartes, and other pubile facilities oisotayed are electric lights, acpliances,and toys that have made people's lives easier, better, and more fun during the last century, t2 l | ||
1 A | |||
l i | |||
1 | i Serviceis LlLCO's Businsss Balanced Mng. Saianced Baling showing them scec:fic energy saving form cf cer'ctmance management | ||
- a new. convenient.resicental con- measures ma:can ce acchecin system. The teely feeccacx cf werk sumer cdl cayment plan-was intro- their hcmes. =cr Only $10 as recuirec per+crmance cata enac:es managers cuced by the Comcanyin tne summer by law (sucstantally ceicw tne actual anc sucerv:scrs to emcicy personnet, of 1979. The plan makes gas ard ccst). ULCO crevices an erergy auc:t matenal. ecuipment. anc .ac:htes mere efectnc Odis mere manageable cy ccncuctec in the consumer s rcme. effectvely The eventual goal is ic ... | - a new. convenient.resicental con- measures ma:can ce acchecin system. The teely feeccacx cf werk sumer cdl cayment plan-was intro- their hcmes. =cr Only $10 as recuirec per+crmance cata enac:es managers cuced by the Comcanyin tne summer by law (sucstantally ceicw tne actual anc sucerv:scrs to emcicy personnet, of 1979. The plan makes gas ard ccst). ULCO crevices an erergy auc:t matenal. ecuipment. anc .ac:htes mere efectnc Odis mere manageable cy ccncuctec in the consumer s rcme. effectvely The eventual goal is ic ... | ||
Civic;ng a customer's annual energy A mad energy accit (52.C0 cnarge) have essent: ally a!! LlLCO emcicyees ccsts 'nto 12 equal mentnfy payments. provices an erergy saving evaluaten on s milar systems. | Civic;ng a customer's annual energy A mad energy accit (52.C0 cnarge) have essent: ally a!! LlLCO emcicyees ccsts 'nto 12 equal mentnfy payments. provices an erergy saving evaluaten on s milar systems. | ||
This system smccths cut tre cayments casec oninfermaten resicents send A new centralizec sxills trairir'g for fluctuat:ng.seascnal peak cen- in to ULCO. The Ccmcany also center was estactisned cunng 1979 in sumction Of energy. Since .ts incection. succties free informaton to interested Hauccauge. Using the most mccem L:LCO has ciacec acout 94.000 cus- customers who wisn to perform the tecnniques anc fac:iites, the center wt!! | This system smccths cut tre cayments casec oninfermaten resicents send A new centralizec sxills trairir'g for fluctuat:ng.seascnal peak cen- in to ULCO. The Ccmcany also center was estactisned cunng 1979 in sumction Of energy. Since .ts incection. succties free informaton to interested Hauccauge. Using the most mccem L:LCO has ciacec acout 94.000 cus- customers who wisn to perform the tecnniques anc fac:iites, the center wt!! | ||
tcmers (aperoximately 12% of all res:- energy saving evaluaten themselves. provice ir. tensive " hands en" training cental censumers) on this cctonal Service Reliability and Productivity uncer sucervised conc: tens. Mainte-program. Balancec Bdhng is one way Programs. in acc: tion to the instadaten nance persenrel fer the Shorenam the Company is snewirig its concem of many mdes cf " tree wire l' p:ctured Nucl ear Power Stat:cn anc a wice range i for me censumer s acihty to meet the below. L LCO is werk;rg to improve cf ciner Cemeany emc!cyees will be | tcmers (aperoximately 12% of all res:- energy saving evaluaten themselves. provice ir. tensive " hands en" training cental censumers) on this cctonal Service Reliability and Productivity uncer sucervised conc: tens. Mainte-program. Balancec Bdhng is one way Programs. in acc: tion to the instadaten nance persenrel fer the Shorenam the Company is snewirig its concem of many mdes cf " tree wire l' p:ctured Nucl ear Power Stat:cn anc a wice range i for me censumer s acihty to meet the below. L LCO is werk;rg to improve cf ciner Cemeany emc!cyees will be r: sing cost of energy. The crcgram is of its service retiacihty Trcugn use of a trained at me new center. | ||
r: sing cost of energy. The crcgram is of its service retiacihty Trcugn use of a trained at me new center. | |||
i cartcular advantage to senicr c:t: ens device caited Thermcvision, an infrared arc to these wno must cucget mem- scancer wnicn cetects ovemeatng in seises within a fixed inccme An acci- electnc current-carrying equipment. | i cartcular advantage to senicr c:t: ens device caited Thermcvision, an infrared arc to these wno must cucget mem- scancer wnicn cetects ovemeatng in seises within a fixed inccme An acci- electnc current-carrying equipment. | ||
tonal feature of Safanced Edling is mat Tnermovision is usec to detect | tonal feature of Safanced Edling is mat Tnermovision is usec to detect | ||
.t eisminates me use of est:matec acncrmalcceratng concitons whicn | .t eisminates me use of est:matec acncrmalcceratng concitons whicn cilis fcr scace neatng customers. would not te picked up ty visual Energy Audit Program. Legislation inspection. Pepairs can then te made enactec in New Ycrx State requires cefore service fadure cccurs.These uthties to estaclisn a program to provice surveys have mace a s:gnificant custcmers witn energy aucits cf their centnbuten to hcicing cown the cost | ||
cilis fcr scace neatng customers. would not te picked up ty visual Energy Audit Program. Legislation inspection. Pepairs can then te made enactec in New Ycrx State requires cefore service fadure cccurs.These uthties to estaclisn a program to provice surveys have mace a s:gnificant custcmers witn energy aucits cf their centnbuten to hcicing cown the cost | |||
. homes. LILCO's promotien of its pro- of unscneculed repairs and in prevent. | . homes. LILCO's promotien of its pro- of unscneculed repairs and in prevent. | ||
grams resultec :n over 20.000 com- ing service cisructens. | grams resultec :n over 20.000 com- ing service cisructens. | ||
cleted energy auc:ts in 1979. The Thrcugncut 1979. LILCO cent nued Energ'/ Aucit Program is availatie to to excand its productvity improvement homeowners and tenants cf cre- and performance management system thrcugh four-family hcuses. The audits programs. Currently. 640'o of all pnysical are cesignec to encourage energy anc cierical employees and 40% of conservaten amcng censumers by management employees are en some | cleted energy auc:ts in 1979. The Thrcugncut 1979. LILCO cent nued Energ'/ Aucit Program is availatie to to excand its productvity improvement homeowners and tenants cf cre- and performance management system thrcugh four-family hcuses. The audits programs. Currently. 640'o of all pnysical are cesignec to encourage energy anc cierical employees and 40% of conservaten amcng censumers by management employees are en some hpy d C | ||
hpy d C | |||
p..r4s , | p..r4s , | ||
. a . | . a . | ||
(.,% 9 | (.,% 9 | ||
<_ E W,. | <_ E W,. | ||
j l5id.# i .,~' M- %e>-( | j l5id.# i .,~' M- %e>-( | ||
Line 941: | Line 558: | ||
9.+ | 9.+ | ||
N ... - | N ... - | ||
s ,I 1 l | |||
s ,I 1 | |||
l | |||
' of,/ M. , | ' of,/ M. , | ||
/, | /, | ||
Line 951: | Line 564: | ||
~~ | ~~ | ||
m , . | m , . | ||
a : | a : | ||
l 4Ll ' * | l 4Ll ' * | ||
. p/ | . p/ | ||
^ | ^ | ||
: 7. %g ., , | : 7. %g ., , | ||
~.'. | ~.'. | ||
q,, ~ | q,, ~ | ||
; 4;*ty.~., | ; 4;*ty.~., | ||
sheathed in a tough, protective coating. UuCO's tree wire | sheathed in a tough, protective coating. UuCO's tree wire | ||
* stays up when the branches fadL The new wtre, four times es strong as conventional wire. can withstand far greater impact from falling trees and limbe and also has electrical insi.;laticn quelltles wnich can prevent service f ailures. in 1973. about '00 ctrcust milos of the new wire were installed to improve the rediability of electrical service to LILCO customers. A total of s.250 ctreust miles of tree were* has oeen insteiled smco the late isso a. This program is currently concentrating on the reosacement | * stays up when the branches fadL The new wtre, four times es strong as conventional wire. can withstand far greater impact from falling trees and limbe and also has electrical insi.;laticn quelltles wnich can prevent service f ailures. in 1973. about '00 ctrcust milos of the new wire were installed to improve the rediability of electrical service to LILCO customers. A total of s.250 ctreust miles of tree were* has oeen insteiled smco the late isso a. This program is currently concentrating on the reosacement | ||
Line 980: | Line 577: | ||
* is the most effective and economical 311effistive to placing these IInes undef 9found. IlIs designed to reduce substantiatly a prirnary cause of extended outages atter maior storme. | * is the most effective and economical 311effistive to placing these IInes undef 9found. IlIs designed to reduce substantiatly a prirnary cause of extended outages atter maior storme. | ||
13 | 13 | ||
Financial Analysb Earnings Revenues Earnings of $2.41 per snarein 1979 Revenues tota!ed 31.045.5 md:icn in were 3c, or 1.2%. below these in 1978. 1979. Eectnc revenues were $860.8 There were 16.9% more average mdlien and gas revenues were 5184.7 commen shares cutstanding in 1979 million. The increases from pncr tnan in 1978. Earnings per snare have years were: | Financial Analysb Earnings Revenues Earnings of $2.41 per snarein 1979 Revenues tota!ed 31.045.5 md:icn in were 3c, or 1.2%. below these in 1978. 1979. Eectnc revenues were $860.8 There were 16.9% more average mdlien and gas revenues were 5184.7 commen shares cutstanding in 1979 million. The increases from pncr tnan in 1978. Earnings per snare have years were: | ||
been increased in 17 cf the past 21 years. j' Dividends R"enues oo.imaani , | been increased in 17 cf the past 21 years. j' Dividends R"enues oo.imaani , | ||
Line 995: | Line 588: | ||
(1) Changes in Rates: Eectnc civioeno. revenues in 1979 reflect $16.3 mdlien Paid per share of the rate increase effective May 4, 7,i,'",'"' 3gy, igy 1979, and the calance of the rate 40 .c increases effectve in 1978, discussed See i 42Sc May 1 42we 42%e below. | (1) Changes in Rates: Eectnc civioeno. revenues in 1979 reflect $16.3 mdlien Paid per share of the rate increase effective May 4, 7,i,'",'"' 3gy, igy 1979, and the calance of the rate 40 .c increases effectve in 1978, discussed See i 42Sc May 1 42we 42%e below. | ||
Ag.1 uwe 42we Eectnc revenues in 1978 reflect Nov 1 44%e 42%c $52.9 millicn cf the $59.7 mdlien 70 tai p aio si r4 si saw electric rate increase effectve January 17,1978, cf which 515.0 millien became The Company estimates that for effective on a temporary basis August 1, federalincome tax purposes certain 1977, and $1.6 mdlien of me $4.9 percentages of the civicends paid in million electric rate increase effectve 1979 represented a return of capital August 24,1978 to cffset increased Electric Expenses and.therefore, may not be taxacle as wages. (cens cc e 3c orcanary income.These percentages Gas revenues in 1979 contained $6.9 . | Ag.1 uwe 42we Eectnc revenues in 1978 reflect Nov 1 44%e 42%c $52.9 millicn cf the $59.7 mdlien 70 tai p aio si r4 si saw electric rate increase effectve January 17,1978, cf which 515.0 millien became The Company estimates that for effective on a temporary basis August 1, federalincome tax purposes certain 1977, and $1.6 mdlien of me $4.9 percentages of the civicends paid in million electric rate increase effectve 1979 represented a return of capital August 24,1978 to cffset increased Electric Expenses and.therefore, may not be taxacle as wages. (cens cc e 3c orcanary income.These percentages Gas revenues in 1979 contained $6.9 . | ||
are 100% of the commen stock million of the rate increase effectve | are 100% of the commen stock million of the rate increase effectve | ||
~ | ~ | ||
Line 1,009: | Line 601: | ||
sg 73 73 75 77 j to ret'ect future higher property taxes. System Sa:es of $5 4 mdlien anc $15 millicn annuaily, Rescemai 40 03% 161) (1.1)% g3, gen,s ir pied from avwege 2.is ocrevenue kwh in per tosskwh sold has to s.se res::ectively, were fi!ed January 25,1980. commere:ai in 1s7s. This rise is oue mainly to increases An acclication was filed with the PSC am in rues prica. The cost of fuel and purchased m LJLCO en Sectem::er 21,1979.to ms'eal 32 0 a, 139 2.3 poww pw average kwh sold was 2.se in 197s, | sg 73 73 75 77 j to ret'ect future higher property taxes. System Sa:es of $5 4 mdlien anc $15 millicn annuaily, Rescemai 40 03% 161) (1.1)% g3, gen,s ir pied from avwege 2.is ocrevenue kwh in per tosskwh sold has to s.se res::ectively, were fi!ed January 25,1980. commere:ai in 1s7s. This rise is oue mainly to increases An acclication was filed with the PSC am in rues prica. The cost of fuel and purchased m LJLCO en Sectem::er 21,1979.to ms'eal 32 0 a, 139 2.3 poww pw average kwh sold was 2.se in 197s, | ||
*y about Wget times the level to years ago. This Ctaer < 42 '. c6 8) (15) r2 3) increase erectne rates $25.6 mdlien. cr ine,ene in ene cost or fue wm responsini. | *y about Wget times the level to years ago. This Ctaer < 42 '. c6 8) (15) r2 3) increase erectne rates $25.6 mdlien. cr ine,ene in ene cost or fue wm responsini. | ||
2.5%, annually for me 12 montns Tetal for so% ot the tots inerene in avwage enced Acni 30.1981. This recuest was svrtem revenue per =wh. coeration and meinte-cesigrec to cffset further inf!cien ms 30 02 63 as n nee apenses, the expenses most sunieet | 2.5%, annually for me 12 montns Tetal for so% ot the tots inerene in avwage enced Acni 30.1981. This recuest was svrtem revenue per =wh. coeration and meinte-cesigrec to cffset further inf!cien ms 30 02 63 as n nee apenses, the expenses most sunieet ac::itions to plant in service, and to Power Poca , | ||
ac::itions to plant in service, and to Power Poca , | |||
,9 | ,9 | ||
'$*,8 o**e"in's NNn'theiceai | '$*,8 o**e"in's NNn'theiceai ref!ect more modest kWh sa!es groveth Saies e2 , M4 128 2 consume price inder. Total taxes have than previous!v estrnated. Public Total Sales 92 01% 507 4C% slightty less thart doubied. Both represent heanngs en mis acclicaten were 8**"S''P*"''"''''*'9"'''""''***Y ccmc!eted in January 1980. | ||
ref!ect more modest kWh sa!es groveth Saies e2 , M4 128 2 consume price inder. Total taxes have than previous!v estrnated. Public Total Sales 92 01% 507 4C% slightty less thart doubied. Both represent heanngs en mis acclicaten were 8**"S''P*"''"''''*'9"'''""''***Y ccmc!eted in January 1980. | |||
'"*"'"'Y# # "* '' ' | '"*"'"'Y# # "* '' ' | ||
14 l | 14 l | ||
Accroximate'y three-quarters cf tne purchased power. tre mix Of generaten Cornpany's annual gas revenues are ey the Cerrcany, and purenases denved fr0m mcf sa:es cf gas to s0 ace et ;cwer. Our:ng 1979 tne Comcacy neatng custcmers Ac0 crc:rgty, ctal purcnased rec 0rc amcunts of power gas system revenues and saies are from etner ut!ites.trerecy cecreasing neavily inftuerced by seascnal the use of hign-cost,!cw su!;nur c0n- | Accroximate'y three-quarters cf tne purchased power. tre mix Of generaten Cornpany's annual gas revenues are ey the Cerrcany, and purenases denved fr0m mcf sa:es cf gas to s0 ace et ;cwer. Our:ng 1979 tne Comcacy neatng custcmers Ac0 crc:rgty, ctal purcnased rec 0rc amcunts of power gas system revenues and saies are from etner ut!ites.trerecy cecreasing neavily inftuerced by seascnal the use of hign-cost,!cw su!;nur c0n- | ||
:em;erature vanat: ens Oetween tent cd oy accut 5.7 millicn carrels. --- | :em;erature vanat: ens Oetween tent cd oy accut 5.7 millicn carrels. --- | ||
pences, and tre availacility of gas for Tre use of sucstantal volumes cf - - . | pences, and tre availacility of gas for Tre use of sucstantal volumes cf - - . | ||
sale :c :nterruct:cle cus:cmers. natural gas, pnnc:cally cctained - | sale :c :nterruct:cle cus:cmers. natural gas, pnnc:cally cctained - | ||
trrough spec:al curchases, for use in on sain -c ,~ , electne gererat:en saved an acc;tenal | trrough spec:al curchases, for use in on sain -c ,~ , electne gererat:en saved an acc;tenal 1.3 mill:en barre:s. The Comcany ls"." | ||
*'"'~ | *'"'~ | ||
u 1979 197s estmates tnat these actors savec mcf % mcf % customers a tctal of $42 million in 1979. | u 1979 197s estmates tnat these actors savec mcf % mcf % customers a tctal of $42 million in 1979. | ||
Line 1,038: | Line 622: | ||
Gas Expenses Tctai sa es 1 59 38% (0 68) (15 A [C[9[s tCenars cer encf) ! | Gas Expenses Tctai sa es 1 59 38% (0 68) (15 A [C[9[s tCenars cer encf) ! | ||
Fue's cen- 5400 s | Fue's cen- 5400 s | ||
, gree Oays surrec 'cr | , gree Oays surrec 'cr Smec (740)(133 8 75 14% Net Gen. - | ||
Smec (740)(133 8 75 14% Net Gen. | |||
(3) Changes in Fuel Costs: Octh p5r*cNa"see ^ , - | (3) Changes in Fuel Costs: Octh p5r*cNa"see ^ , - | ||
efecinc and gas revenues are af'ected cc*er 0 66c h3 (O C2:c (0 9) 6 by cnances in the costs Of efectnc fuels. Eecr.c - | |||
by cnances in the costs Of efectnc fuels. Eecr.c - | |||
cerchased ccwer.anc gas fuels (see 'g[0st , , | cerchased ccwer.anc gas fuels (see 'g[0st , , | ||
3 00 be:cw) whCh f!cw to Customers ment inrcugn the aCpr0pnate fuel acJust- :e'erral (0 05:c (312 3) 0 04: 633 3 ment C'ause? Or Gas 2.50 s >necut | 3 00 be:cw) whCh f!cw to Customers ment inrcugn the aCpr0pnate fuel acJust- :e'erral (0 05:c (312 3) 0 04: 633 3 ment C'ause? Or Gas 2.50 s >necut s/mcf 50 32 20 3 s022 16 1 - | ||
s/mcf 50 32 20 3 s022 16 1 - | |||
Operation and Maintenance Expenses | Operation and Maintenance Expenses | ||
- wo As previcusly ircica:ed. the Cnanges 2 | - wo As previcusly ircica:ed. the Cnanges 2 Q,l' ,,,,,, 1979 1978 in eleC:nO anc gas fuel and purchased - | ||
Q,l' ,,,,,, 1979 1978 in eleC:nO anc gas fuel and purchased - | |||
pu,, | pu,, | ||
e , v.., | e , v.., | ||
Line 1,068: | Line 641: | ||
15 | 15 | ||
Other items Capital Requiremen] | Other items Capital Requiremen] | ||
increases in decrec:aten generally L!LCO's cacital recuirements, result from tne aceton of plant in inc!uc:ng AFC.Icta:ec $466.1 millico service. Increases in operating taxes in 1979: | increases in decrec:aten generally L!LCO's cacital recuirements, result from tne aceton of plant in inc!uc:ng AFC.Icta:ec $466.1 millico service. Increases in operating taxes in 1979: | ||
are onnc:pa:!y due to nigner e,,,,,, g ,,,;,,,, n ,, | are onnc:pa:!y due to nigner e,,,,,, g ,,,;,,,, n ,, | ||
crecerty taxes resultng from the (inctudes Trusts) .us- orsi acciDCn of new plant and increased , | crecerty taxes resultng from the (inctudes Trusts) .us- orsi acciDCn of new plant and increased , | ||
precerty tax rates, as weil as higner w expectures - . . | precerty tax rates, as weil as higner w expectures - . . | ||
state and 10 Cal gross inCerre and franCnise taxes on increased revenues. "C E'O ** $#I | state and 10 Cal gross inCerre and franCnise taxes on increased revenues. "C E'O ** $#I | ||
* cas crecem 13 3 Changes:n feceralincome taxes are ,4 cue pnnc: pally to vanatens in net ecmmevrecem income before it'Come taxes, a cecrease in the tax rate, utlization of Ae o e securtes investment tax Credits, and 'tems | * cas crecem 13 3 Changes:n feceralincome taxes are ,4 cue pnnc: pally to vanatens in net ecmmevrecem income before it'Come taxes, a cecrease in the tax rate, utlization of Ae o e securtes investment tax Credits, and 'tems TotalCaoitai Aecuirements s4661 capitalized for financial statement curecses that are current ceductions Permanent financ:ng in 1979 totated on tne Cemcany's tax return. a record $312.7 malhen, composed of: | ||
TotalCaoitai Aecuirements s4661 capitalized for financial statement curecses that are current ceductions Permanent financ:ng in 1979 totated on tne Cemcany's tax return. a record $312.7 malhen, composed of: | |||
Tre !ncreases :n interest charges permanent Financing and creferred stock civicends resuit co -ee i cnmanly frcm the sale of acct onal vengage cones s1cc o secuntes. ancreases in interest and Autner:ty f*anc;r g nctes 19.1 civicend rates, anc me use of In- p eterred stock 7EO Countes Resources Trust and ccmmen ecuity 119 6 Tn-Ccunties Constructen Trust to y,, p g.n 33, 7 7 finance the Comcany s centinuing ccestructen and nuclear fuel programs. In acditon, Tri-Counties Resources Tre amount of al!cwance for funds Trust borrowed $29.3 milhon, through usec cunng construction (AFC) agr (inctuong AFC correscending to Trust to feements inance L:LCO witnexpenditures its lenong for insttutons, interest) fluctuates from pr , >d to period. These fluctuato% a a caused nuc! ear fuel. Tri-Ccontes Constructicn oviced $48.4 million to finance cy changes in the cce cf money,the level of constructor activity,the Tmst ULCO c[s share cf excencitures on Nine Mile Point Unit 2. A further $21.0 mill:en amcunt of ccnstruction work in crogress (CWIP) inc!uded in rate base, was prov:ded through the Resources Trust to fund L!LCO s Ican to Bckum and moofications in regulatory pclicy. nescurces Capcaton. Adctonal The amount of electnc CWIP informaDen on me operaden ome included in rate base wasincreased Trusts is provided in Note 6 cf the Nctes Consumer Price Index vs. | Tre !ncreases :n interest charges permanent Financing and creferred stock civicends resuit co -ee i cnmanly frcm the sale of acct onal vengage cones s1cc o secuntes. ancreases in interest and Autner:ty f*anc;r g nctes 19.1 civicend rates, anc me use of In- p eterred stock 7EO Countes Resources Trust and ccmmen ecuity 119 6 Tn-Ccunties Constructen Trust to y,, p g.n 33, 7 7 finance the Comcany s centinuing ccestructen and nuclear fuel programs. In acditon, Tri-Counties Resources Tre amount of al!cwance for funds Trust borrowed $29.3 milhon, through usec cunng construction (AFC) agr (inctuong AFC correscending to Trust to feements inance L:LCO witnexpenditures its lenong for insttutons, interest) fluctuates from pr , >d to period. These fluctuato% a a caused nuc! ear fuel. Tri-Ccontes Constructicn oviced $48.4 million to finance cy changes in the cce cf money,the level of constructor activity,the Tmst ULCO c[s share cf excencitures on Nine Mile Point Unit 2. A further $21.0 mill:en amcunt of ccnstruction work in crogress (CWIP) inc!uded in rate base, was prov:ded through the Resources Trust to fund L!LCO s Ican to Bckum and moofications in regulatory pclicy. nescurces Capcaton. Adctonal The amount of electnc CWIP informaDen on me operaden ome included in rate base wasincreased Trusts is provided in Note 6 cf the Nctes Consumer Price Index vs. | ||
erfectve Fecruary 1,1978, from to Financial Statements. Average Price per kWh of | erfectve Fecruary 1,1978, from to Financial Statements. Average Price per kWh of | ||
Line 1,089: | Line 657: | ||
** $ % $ % five years. Authcrity is being sought 3o0 cecrecaten 3 2.9 56% s61 136% from the PSC to berr w uncer these cce atng ccmmitments. | ** $ % $ % five years. Authcrity is being sought 3o0 cecrecaten 3 2.9 56% s61 136% from the PSC to berr w uncer these cce atng ccmmitments. | ||
taxes 12.5 39 96 73 No shcrt-term cett was Outstancing 4:e'ai at the end cf each of the last fiva years. | taxes 12.5 39 96 73 No shcrt-term cett was Outstancing 4:e'ai at the end cf each of the last fiva years. | ||
200 e' axes (16 5ne90) 12.3 132.9 (See Ncte 4 Cf the Nctes to Financ:al | 200 e' axes (16 5ne90) 12.3 132.9 (See Ncte 4 Cf the Nctes to Financ:al | ||
: ar;es Statements.) | : ar;es Statements.) | ||
Line 1,103: | Line 670: | ||
:: terrewed 1984 Extema! scurces are estimated ynes and to crovice $1.1 tillicn anc me Trusts '!'CC'' '"'d'"d'n'enja Y s higne | :: terrewed 1984 Extema! scurces are estimated ynes and to crovice $1.1 tillicn anc me Trusts '!'CC'' '"'d'"d'n'enja Y s higne | ||
$c,In n .n 2 urner in 1s79 nstsi | $c,In n .n 2 urner in 1s79 nstsi | ||
;63 529 33 ,a," Will provide 50.5 billicn. same period. | ;63 529 33 ,a," Will provide 50.5 billicn. same period. | ||
16 | 16 | ||
Shareowners' investment Cf :ne retai $123.8 m:lhen cf :nceme in ' ate 1979.the Assoc:aten cf fcr cor mon s:ccx. 534.2 millien. cr Investers in New York Utstes (AINYU) 26 5%. nas reinvested in ULCO for was fermec ::y secunty neicers of snareewners. At tre enc of 1979, invester-cwnec New Ycrk utites-common equity representec 39.7% cf A trocnure procuced by AINYU was tctal ca::italizat:cn ccmcared utn sent to ULCO investcrs in Fecruarf. | Shareowners' investment Cf :ne retai $123.8 m:lhen cf :nceme in ' ate 1979.the Assoc:aten cf fcr cor mon s:ccx. 534.2 millien. cr Investers in New York Utstes (AINYU) 26 5%. nas reinvested in ULCO for was fermec ::y secunty neicers of snareewners. At tre enc of 1979, invester-cwnec New Ycrk utites-common equity representec 39.7% cf A trocnure procuced by AINYU was tctal ca::italizat:cn ccmcared utn sent to ULCO investcrs in Fecruarf. | ||
35 5% at the end of 1977. These rat:cs Accit:cnal eccles may ::e cctainec cy ~ | 35 5% at the end of 1977. These rat:cs Accit:cnal eccles may ::e cctainec cy ~ | ||
Line 1,127: | Line 691: | ||
activety with ctner ccmcanies in :he and any employee ceemed to te a Ccmmittee on Captal Formahon / | activety with ctner ccmcanies in :he and any employee ceemed to te a Ccmmittee on Captal Formahon / | ||
fiduc:ary cr trustee, fer any allegec througn On,icend Ae:nves:rrent. The bieach of fiduc:ary lia::ility uncer :ne m | fiduc:ary cr trustee, fer any allegec througn On,icend Ae:nves:rrent. The bieach of fiduc:ary lia::ility uncer :ne m | ||
: c. - | : c. - | ||
::ur::cse cf tre Ccmmittee is to seek Empicyee Ret:rement income Secunty feceral legislaten that wculd permit /' | ::ur::cse cf tre Ccmmittee is to seek Empicyee Ret:rement income Secunty feceral legislaten that wculd permit /' | ||
Line 1,141: | Line 704: | ||
* wn.cn ull ccme u:: fer neanngs in 1980. | * wn.cn ull ccme u:: fer neanngs in 1980. | ||
Passa:;e of suen !eg: stat en would crevici a ctrect anc cest-et'ective s:ec icwarcs recucten cf cou:: e taxaten on crvicenc re:nvestment :n sucn snares. | Passa:;e of suen !eg: stat en would crevici a ctrect anc cest-et'ective s:ec icwarcs recucten cf cou:: e taxaten on crvicenc re:nvestment :n sucn snares. | ||
tnerecy ::revicing acc:t.cnal ca::itai 3 | tnerecy ::revicing acc:t.cnal ca::itai 3 | ||
:c f .arce essental ecergy fac:ht.es. es it is is 77 s We urge you te excress ycur 'rterest The number of owners of ULeo's common in :Pese 0; tis to ycur memcers stock totated 151.800 at year end 1979, an , | :c f .arce essental ecergy fac:ht.es. es it is is 77 s We urge you te excress ycur 'rterest The number of owners of ULeo's common in :Pese 0; tis to ycur memcers stock totated 151.800 at year end 1979, an , | ||
cf Cer'gress. increase of $3% in the last ten years. 1 17 | cf Cer'gress. increase of $3% in the last ten years. 1 17 1 | ||
1 | |||
Common and Preferred Stock Prices The Commen Stock,tne Preferred Stock S100 par value Series B, E. I. J, and K. and the Preferrec Stock $25 par value Senes O and P cf the Company, are traded on the New York Stock Schange. Trading in the Commen Stock commenced Cecemcer 20, 1979, on the Pacdc Stock & change. Tracing in the Preferred Stock. 3100 parvalue, Senes S, commenced on Ceteter 16,1979, en the New Yorx Stock &cnange. The tacte below indicates the high and low sale pnces on the New York Stcck & change listing of composite transacticns for the years 1979 and 1978. | Common and Preferred Stock Prices The Commen Stock,tne Preferred Stock S100 par value Series B, E. I. J, and K. and the Preferrec Stock $25 par value Senes O and P cf the Company, are traded on the New York Stock Schange. Trading in the Commen Stock commenced Cecemcer 20, 1979, on the Pacdc Stock & change. Tracing in the Preferred Stock. 3100 parvalue, Senes S, commenced on Ceteter 16,1979, en the New Yorx Stock &cnange. The tacte below indicates the high and low sale pnces on the New York Stcck & change listing of composite transacticns for the years 1979 and 1978. | ||
Common Stock Preferred Stock Senes B-5% SeresE-435% SenesI-5%% Seres J-a.12% Seres < a.3o% Senes 0-52.47 Seres P-3243 Seres S-3 30% | Common Stock Preferred Stock Senes B-5% SeresE-435% SenesI-5%% Seres J-a.12% Seres < a.3o% Senes 0-52.47 Seres P-3243 Seres S-3 30% | ||
*.n Low Hgn Low Hgn Low Hgn Low Mgn Low %gn Lcw Hgn Low Mgn Low Hign Low 1978 | *.n Low Hgn Low Hgn Low Hgn Low Mgn Low %gn Lcw Hgn Low Mgn Low Hign Low 1978 1st Quarter 19% 17% 57 54 48% 45% 90 86 92% 87 94 89% 27% 26 27% 26 - - | ||
1st Quarter 19% 17% 57 54 48% 45% 90 86 92% 87 94 89% 27% 26 27% 26 - - | |||
2nc Ouarter 19% 18% 52% 50 47% 44 % 92 88 % 86% 80 92 80 27 24% 26% 24% - - | 2nc Ouarter 19% 18% 52% 50 47% 44 % 92 88 % 86% 80 92 80 27 24% 26% 24% - - | ||
3rd Quarter 19% 18% 54 52 48 % 43 92% 91 % 90 81 93% 83 27% 24% 27 25 ' - - | 3rd Quarter 19% 18% 54 52 48 % 43 92% 91 % 90 81 93% 83 27% 24% 27 25 ' - - | ||
Line 1,166: | Line 721: | ||
Report ofIndependent Accountants To the Shareewners and Scard cf Directors of Long Island Lighting Company in our opinien. the financial statements acceanng on pages 19 to 29 present fairly ne 'inancial cosition of Long Is and Lightirig Comcany at December 31,1979 and 1978, and the results of its operatiens and the changes in its financial pos: tion for each of the five years ended December 31.1979. in conformity with generally accepted accounting principles consistently applied. Our examinations of these statements were mace in acccrdance with generally accected aucit:ng stancards and accordingly metuded such tests of the accounting recercs and such other auditing procedures as we considered necesary in the circumstances. | Report ofIndependent Accountants To the Shareewners and Scard cf Directors of Long Island Lighting Company in our opinien. the financial statements acceanng on pages 19 to 29 present fairly ne 'inancial cosition of Long Is and Lightirig Comcany at December 31,1979 and 1978, and the results of its operatiens and the changes in its financial pos: tion for each of the five years ended December 31.1979. in conformity with generally accepted accounting principles consistently applied. Our examinations of these statements were mace in acccrdance with generally accected aucit:ng stancards and accordingly metuded such tests of the accounting recercs and such other auditing procedures as we considered necesary in the circumstances. | ||
Price Waterhouse & Co. | Price Waterhouse & Co. | ||
Huntington Station, NY January 20.1980 | Huntington Station, NY January 20.1980 18 | ||
18 | |||
Financial Statements | Financial Statements | ||
~~ | ~~ | ||
Line 1,188: | Line 738: | ||
19 | 19 | ||
Financial Statements Balance Sheet at cecemeer at on ecusancs ce cenarsi Assets 1979 1978 Utility Plant E'ectnc $1,568,311 $1.5C6.659 Gas 284,464 275.046 Common 72,351 71.273 Constructen work in progress 1,444,631 1.145.445 Nuclear fuelin process - | |||
Financial Statements | |||
Balance Sheet at cecemeer at on ecusancs ce cenarsi Assets 1979 1978 Utility Plant E'ectnc $1,568,311 $1.5C6.659 Gas 284,464 275.046 Common 72,351 71.273 Constructen work in progress 1,444,631 1.145.445 Nuclear fuelin process - | |||
3.675 Constructen and nuc: ear fuel in trusts 242,201 165.503 3,611,962 3.167.601 Less- Accumulated cecrec:st;cn 526,992 426.8G5 Tctal Net Utilitv D' ant 3,084,970 2.680.736 Other Property and Investments Nonctility prcperty, pnncically at ecst 1,875 2.300 investment in subscary companies, at equity 379 385 Ctnerinvestments and cecos.ts 74,731 68.099 Tctal Ctner Precerty and Investments 76,985 70.784 Current Assets Cash 8,526 7221 Temocrary casn investments 3,480 3.000 Spec:al deposits 12,427 2.90S Note receivatie-construction trust - 48.229 Accounts receivacle dess allowance fer deuttful accounts et S3,147.000 and $2.413.000) 115,855 92.816 Accrued revenue on acccunts Dailed cimenthly 13,867 11.045 Materials and sucches at average cost 24,605 21.896 Fuel oil at average cost 42,320 23.108 Gas in storage at average c0st 24,323 18.222 Precavments 1,205 1.018 7ctalCurrent Assets 246,703 229.463 Deferred Charges E!ectnc fuel C0st ad;ustment ceferred 22,709 8.131 Other 28.210 27.599 7ctal Ce+ened Charges 50,919 35.730 Total Assets $3,459,582 53.016.713 20 i | 3.675 Constructen and nuc: ear fuel in trusts 242,201 165.503 3,611,962 3.167.601 Less- Accumulated cecrec:st;cn 526,992 426.8G5 Tctal Net Utilitv D' ant 3,084,970 2.680.736 Other Property and Investments Nonctility prcperty, pnncically at ecst 1,875 2.300 investment in subscary companies, at equity 379 385 Ctnerinvestments and cecos.ts 74,731 68.099 Tctal Ctner Precerty and Investments 76,985 70.784 Current Assets Cash 8,526 7221 Temocrary casn investments 3,480 3.000 Spec:al deposits 12,427 2.90S Note receivatie-construction trust - 48.229 Accounts receivacle dess allowance fer deuttful accounts et S3,147.000 and $2.413.000) 115,855 92.816 Accrued revenue on acccunts Dailed cimenthly 13,867 11.045 Materials and sucches at average cost 24,605 21.896 Fuel oil at average cost 42,320 23.108 Gas in storage at average c0st 24,323 18.222 Precavments 1,205 1.018 7ctalCurrent Assets 246,703 229.463 Deferred Charges E!ectnc fuel C0st ad;ustment ceferred 22,709 8.131 Other 28.210 27.599 7ctal Ce+ened Charges 50,919 35.730 Total Assets $3,459,582 53.016.713 20 i | ||
l | l | ||
Financial Statements Capitailzation and Llabilities t979 1978 Capitalization Long-term dect $1,274,722 51,175.662 Unamortized cremium and disecunt en cect 24 89 1,274,746 1.175.751 Preferred s!cck-redemot:cn recuired 294,100 226.950 Prefer'ed stock-nc redemetron recuired 160,090 163.499 Tctal Preferrec Stock 454,190 390 449 Commen stocx 301.116 257.372 Premium en cacital stock 520,324 442.353 Cacital s!ccx excense (30,138) (28.321) | |||
Financial Statements | |||
Capitailzation and Llabilities t979 1978 Capitalization Long-term dect $1,274,722 51,175.662 Unamortized cremium and disecunt en cect 24 89 1,274,746 1.175.751 Preferred s!cck-redemot:cn recuired 294,100 226.950 Prefer'ed stock-nc redemetron recuired 160,090 163.499 Tctal Preferrec Stock 454,190 390 449 Commen stocx 301.116 257.372 Premium en cacital stock 520,324 442.353 Cacital s!ccx excense (30,138) (28.321) | |||
Petared earnings 346,001 311.838 Tctal Common Shareewners' Ecuity 1,137,303 982.942 Tctal Cacitahzatien 2.866,239 2.549.142 Trust Obilgations 287,308 189.603 Current L! abilities Current matunties cf icng-term cett 20.040 37 Sinking Nnd requiremerts en creferred stcck 7,850 1.050 Nctes cayacle 24,836 - | Petared earnings 346,001 311.838 Tctal Common Shareewners' Ecuity 1,137,303 982.942 Tctal Cacitahzatien 2.866,239 2.549.142 Trust Obilgations 287,308 189.603 Current L! abilities Current matunties cf icng-term cett 20.040 37 Sinking Nnd requiremerts en creferred stcck 7,850 1.050 Nctes cayacle 24,836 - | ||
Acccunts payable 96,383 129.285 Accrued tases. (including federal teome tax of S2.092.000 and $3.773.000) 32,467 31.403 Accrued interest 22,195 18.499 Custcmer deccs.ts 8,080 8.125 Divicends cayacle 30,864 25.984 Tctal Current L:abil: ties 242,715 214.383 Deferred Credits Accumulated deferred inccme tax reduct;cns 54,901 49.926 Cther 2,458 7.213 Tctal De' erred Cred:!s 57,359 57.139 Reserves for Claims and Damages 5,961 6.446 Commitments and Contingencies - - | Acccunts payable 96,383 129.285 Accrued tases. (including federal teome tax of S2.092.000 and $3.773.000) 32,467 31.403 Accrued interest 22,195 18.499 Custcmer deccs.ts 8,080 8.125 Divicends cayacle 30,864 25.984 Tctal Current L:abil: ties 242,715 214.383 Deferred Credits Accumulated deferred inccme tax reduct;cns 54,901 49.926 Cther 2,458 7.213 Tctal De' erred Cred:!s 57,359 57.139 Reserves for Claims and Damages 5,961 6.446 Commitments and Contingencies - - | ||
Total Capitailzation and Liabilities 53,459.582 53.016.713 l See Nctes to Manc as Staten ents. | Total Capitailzation and Liabilities 53,459.582 53.016.713 l See Nctes to Manc as Staten ents. | ||
l 1 | l 1 | ||
21 | 21 | ||
Financial Statements Statement of Changes in Financial Position *er year e-cea cece, eer 31 on t ousares et eenarsi _ .I 1979 1978 1977- 1976 1975 Source of Funds Operations Net inccme S161,663 5141.993 $132.310 $111.569 5 87.280 Pnne: pal ncncasn enarges anc icrec:ts) to inecme: | Financial Statements Statement of Changes in Financial Position *er year e-cea cece, eer 31 on t ousares et eenarsi _ .I 1979 1978 1977- 1976 1975 Source of Funds Operations Net inccme S161,663 5141.993 $132.310 $111.569 5 87.280 Pnne: pal ncncasn enarges anc icrec:ts) to inecme: | ||
Decrec:at:en 54,060 51,192 45.049 42.737 40.715 Deferred and etner feceral income taxes 1,894 14.712 3.656 8.907 5.252 Alicwance for runcs usec cunng construct.cn (80.120) (66.177) (65.801) (50.681) (36.345) | Decrec:at:en 54,060 51,192 45.049 42.737 40.715 Deferred and etner feceral income taxes 1,894 14.712 3.656 8.907 5.252 Alicwance for runcs usec cunng construct.cn (80.120) (66.177) (65.801) (50.681) (36.345) | ||
Line 1,240: | Line 775: | ||
Net increase (Decrease) $ (11,087) 3 f 29 534) 3 (7631 5 39 031 $ 40 404 22 | Net increase (Decrease) $ (11,087) 3 f 29 534) 3 (7631 5 39 031 $ 40 404 22 | ||
Financial Statements Shareewners' Equity at oece-cer3i necusares ot ecaarsi - - . | Financial Statements Shareewners' Equity at oece-cer3i necusares ot ecaarsi - - . | ||
1979 1978 1977 *1976 1975 Statement of Retained Earnings Ba . .ce. January 1 S311,838 S279.157 5242.147 $209 524 S197.537 Acc-Net income for tne year 161,663 141.993 132.310 111.569 87.280 Less-Cost cf :ssuance of ret: rec pre'errec s ccx - - | 1979 1978 1977 *1976 1975 Statement of Retained Earnings Ba . .ce. January 1 S311,838 S279.157 5242.147 $209 524 S197.537 Acc-Net income for tne year 161,663 141.993 132.310 111.569 87.280 Less-Cost cf :ssuance of ret: rec pre'errec s ccx - - | ||
Line 1,261: | Line 794: | ||
23 | 23 | ||
Notes to for incoma tax:s, excect witn r:scect to Financial Statements the Shorer am Unit)in tne rescectve cenocs.the certon of AFC attnoutacle to funds provided cy common stock Note 1. Surnmary of Significant equity for the years 1975 and 1976, was Accounting Policies equiva!ent to 14% and 17% of inccme Theacccuntingrecordsof the for Commen Stock. | Notes to for incoma tax:s, excect witn r:scect to Financial Statements the Shorer am Unit)in tne rescectve cenocs.the certon of AFC attnoutacle to funds provided cy common stock Note 1. Surnmary of Significant equity for the years 1975 and 1976, was Accounting Policies equiva!ent to 14% and 17% of inccme Theacccuntingrecordsof the for Commen Stock. | ||
In compliance with the FERC'crder, Company are maintained in accer. | In compliance with the FERC'crder, Company are maintained in accer. | ||
Line 1,275: | Line 806: | ||
FERC method for calculat:ng AFC. | FERC method for calculat:ng AFC. | ||
The average annual AFC rate. with- Deferred Electric Fuel cut giving effect to ccmpouncing er the Cost Adjustment reduced Shcreham net cf tax rate.was The E!ectnc FuelCcst Adjustment 8.9%,925%,928%. 9.72% and 9 99% represents the difference cetween for the years 1975 througn 1979, re- actualfuel ccsts and the fuelcesis i | The average annual AFC rate. with- Deferred Electric Fuel cut giving effect to ccmpouncing er the Cost Adjustment reduced Shcreham net cf tax rate.was The E!ectnc FuelCcst Adjustment 8.9%,925%,928%. 9.72% and 9 99% represents the difference cetween for the years 1975 througn 1979, re- actualfuel ccsts and the fuelcesis i | ||
scecuvelv. The Shcrenam net cf tax allowed in the Company's base tanff | scecuvelv. The Shcrenam net cf tax allowed in the Company's base tanff annual AFC rate, witncut giving effect to rates.The Comcany, to acnieve a pro-comocuncing,was7.34% 7.63%,7.93% per matching cf costs and revenues, and 821% for theyears 1976 thrcugh defers this c tference alcng with the 1979, respectivety. relatedincome tax effects to these Based uoan a five-year average of the future penods in wnien it mil be billed Company's cacitalization and ucen the to customers.The Company believes most current costs of preferred stcck that the PSC will centnue to permit the l anc Icog-term debt (without acjustment recovery of ceterred fuelccsts. | ||
annual AFC rate, witncut giving effect to rates.The Comcany, to acnieve a pro-comocuncing,was7.34% 7.63%,7.93% per matching cf costs and revenues, | |||
and 821% for theyears 1976 thrcugh defers this c tference alcng with the | |||
1979, respectivety. relatedincome tax effects to these Based uoan a five-year average of the future penods in wnien it mil be billed Company's cacitalization and ucen the to customers.The Company believes most current costs of preferred stcck that the PSC will centnue to permit the l anc Icog-term debt (without acjustment recovery of ceterred fuelccsts. | |||
l l | l l | ||
l 24 l | l 24 l | ||
Federalincome Taxes of Icng-term cect are amcrtizcc over amert:zcc anc reccveredin tna An acceterated c!Prec:ation metrcc. motiv:sof tnoissu:s Cac:talstock Cemeany s rates over swen years,tne tcgetner w tn ceprec:ation Wes wnicn ex::ense related to tnat cert:en of term of the Senes Q issue. | Federalincome Taxes of Icng-term cect are amcrtizcc over amert:zcc anc reccveredin tna An acceterated c!Prec:ation metrcc. motiv:sof tnoissu:s Cac:talstock Cemeany s rates over swen years,tne tcgetner w tn ceprec:ation Wes wnicn ex::ense related to tnat cert:en of term of the Senes Q issue. | ||
are sncrter than mese referred to preferred stock recuirec to ::e Recemet:en of Senes L. M. O. O. R sncer Cecreciat:cn. is usec fcr :nccme receemec:s Antten-ctf as an anc S Pre'errec Stock s proviced for tax purceses. Interest. pens: ens. taxes, aciustment!c reta:nec esmmgs when inr0ugn varying sirk:ng fura crevis: ens. | are sncrter than mese referred to preferred stock recuirec to ::e Recemet:en of Senes L. M. O. O. R sncer Cecreciat:cn. is usec fcr :nccme receemec:s Antten-ctf as an anc S Pre'errec Stock s proviced for tax purceses. Interest. pens: ens. taxes, aciustment!c reta:nec esmmgs when inr0ugn varying sirk:ng fura crevis: ens. | ||
Line 1,295: | Line 817: | ||
taxes are ceductec cn a ben care::asts. camage are pamany seifensurec. Pro- res::ectively. | taxes are ceductec cn a ben care::asts. camage are pamany seifensurec. Pro- res::ectively. | ||
.n contrast to tre fiscal year :: asis usec visions to the reserves are ::ased upon expenence, nsx cf Icss, and/cr scecific Note 4. Short-term Loans and for 'inancial statements. For inese anc simdar reascrs, taxacie mccme is less creers of the PSC. Compensating Balances ' | .n contrast to tre fiscal year :: asis usec visions to the reserves are ::ased upon expenence, nsx cf Icss, and/cr scecific Note 4. Short-term Loans and for 'inancial statements. For inese anc simdar reascrs, taxacie mccme is less creers of the PSC. Compensating Balances ' | ||
than franc:al statement inccme ' he Ccmpany has authenty from Note 2. Retirement Plans FERC to issue up to a tctal cf Tne Comcany's general;;chey is to e ne Cemcany mamtams a pens.cn ret'ect as .nceme tax ex::erse me $250.0C0.000 in notes to tanks and amcunt cf mccme taxes currently cay- gan wnicn covers most emeicyees. ccmmerc:alca::er.The Company has i he tetai cests re'atec tc tne cians were estachsnec tank lir es of crec:t tctaling | than franc:al statement inccme ' he Ccmpany has authenty from Note 2. Retirement Plans FERC to issue up to a tctal cf Tne Comcany's general;;chey is to e ne Cemcany mamtams a pens.cn ret'ect as .nceme tax ex::erse me $250.0C0.000 in notes to tanks and amcunt cf mccme taxes currently cay- gan wnicn covers most emeicyees. ccmmerc:alca::er.The Company has i he tetai cests re'atec tc tne cians were estachsnec tank lir es of crec:t tctaling en s 'I e*u S11.694 000. 510;732.000. 59.712.0C0. 5140.000.000 at Cecemcer 31,1979. | ||
y.rects c, tre...erences | y.rects c, tre...erences | ||
,,,ce fc ::et,seen net | ,,,ce fc ::et,seen net | ||
Line 1,314: | Line 834: | ||
1973 ct acc;ticnal crec ts fcr mancar ' ni Cecemcer 1977 me Ccencany acccuntog anc rate-maxmg ::cr;;cses. refurcec .ts 13% Sen'es N Preferre, wmde M ccannas. | 1973 ct acc;ticnal crec ts fcr mancar ' ni Cecemcer 1977 me Ccencany acccuntog anc rate-maxmg ::cr;;cses. refurcec .ts 13% Sen'es N Preferre, wmde M ccannas. | ||
2% and m,J.,escechey The utezaticn cf sucn acc;tronal Stecx utn the issuance of 7'50% tacec crec;ts for tax pur;;cses, newever. con- Senes G Preferrec Stecx. in accer-ccmmmens m a amer CRanxs trues to ::e su:::ect to tre ::rev:s:crs to ::revice to to 5250.0C0 000 on a carce utn a PSC crcer. tre cost of cf tre!memalRevenue Cece. ,ssuance of Senes N was enarged te r,e@mg cemas:s fc amxcat,ey Capitalization-Premiums, Discounts Fetamec Eammgs anc the cost ofissu- jatftcrtc ccftcuu c r '. se and Expenses ance cf Seres e and tne 58.000.000 cail cremium cf Senes N was c arged "m"" | 2% and m,J.,escechey The utezaticn cf sucn acc;tronal Stecx utn the issuance of 7'50% tacec crec;ts for tax pur;;cses, newever. con- Senes G Preferrec Stecx. in accer-ccmmmens m a amer CRanxs trues to ::e su:::ect to tre ::rev:s:crs to ::revice to to 5250.0C0 000 on a carce utn a PSC crcer. tre cost of cf tre!memalRevenue Cece. ,ssuance of Senes N was enarged te r,e@mg cemas:s fc amxcat,ey Capitalization-Premiums, Discounts Fetamec Eammgs anc the cost ofissu- jatftcrtc ccftcuu c r '. se and Expenses ance cf Seres e and tne 58.000.000 cail cremium cf Senes N was c arged "m"" | ||
tment-^ | tment-^ | ||
Premiums er escounts and ex::enses re!atec tc tne issuance to Cac<tal Stock Ex::ense and is ce.ng 25 | Premiums er escounts and ex::enses re!atec tc tne issuance to Cac<tal Stock Ex::ense and is ce.ng 25 | ||
Note 5. Federalincome Taxes ThJ FacerJ ccome tar amounts cc1uced in t'o stremeat of inccme c.f*er ' rom tn3 amounts wnicn resut | Note 5. Federalincome Taxes ThJ FacerJ ccome tar amounts cc1uced in t'o stremeat of inccme c.f*er ' rom tn3 amounts wnicn resut | ||
* rom acciymginc stnutcry Fecerai ccom: tax rats to Net :Pcome be'oro cCome tax. Tr's reascrs are SS srown ceiow' (IninCusancs of collars) 1979 1978 1977 1976 1975 | * rom acciymginc stnutcry Fecerai ccom: tax rats to Net :Pcome be'oro cCome tax. Tr's reascrs are SS srown ceiow' (IninCusancs of collars) 1979 1978 1977 1976 1975 | ||
Line 1,339: | Line 856: | ||
$87.000.000. These crecits exc.re by 1986 Note 6. Trust Obligations The Comcany entered into arrange- the matur:ty date for cne accitional year. just pncr to Icading the fuelin the ments wan Tn-Ccunties Resources The Constructicn Trust Ican is payacle Ccmpany's reacters er upon termina-Trust (Rescurces Trust). in Sectemcer according to a recay ment schecule with tien cf the Trust. Similany, the 1977, and Tn-Counties Ccns:ruct:en quarterly payments ceginning nct Companyis celigatec to arrange to Trust (Construct:cn Trust). in August eartier tnan March 31.1985 and ending reimeurse tne Construction Trust for 1978. crevieng for tne Trusts to not later than Jure 30,1988. The Trusts nuclear fuel anc construction just pncr finance. rescec: vely, the acquis: tion of may, with availacle funcs net to Nine Mile Point Unit 2 going :nto the Ccmcany's nue: ear fuel and :ts 18% immeciately needed for sucn financ:ng, operation. | $87.000.000. These crecits exc.re by 1986 Note 6. Trust Obligations The Comcany entered into arrange- the matur:ty date for cne accitional year. just pncr to Icading the fuelin the ments wan Tn-Ccunties Resources The Constructicn Trust Ican is payacle Ccmpany's reacters er upon termina-Trust (Rescurces Trust). in Sectemcer according to a recay ment schecule with tien cf the Trust. Similany, the 1977, and Tn-Counties Ccns:ruct:en quarterly payments ceginning nct Companyis celigatec to arrange to Trust (Construct:cn Trust). in August eartier tnan March 31.1985 and ending reimeurse tne Construction Trust for 1978. crevieng for tne Trusts to not later than Jure 30,1988. The Trusts nuclear fuel anc construction just pncr finance. rescec: vely, the acquis: tion of may, with availacle funcs net to Nine Mile Point Unit 2 going :nto the Ccmcany's nue: ear fuel and :ts 18% immeciately needed for sucn financ:ng, operation. | ||
snare of construct:cn and nuclear fuel make certain investments. :nctucing The Rescurces Trust and the Cen-ccsts for Nine Mile Point Unit 2.The investmentsin the Comcany's struction Trust interest en bcrrowings Rescurces Trust and tre Ccnstruction prem:sscry notes.The Trusts' total is calculatec, pnnc:cally at 105% of the Trust pnnc: pally nave revolving credit cbligatico of $287.3C8.000 at Decemcer prevailing pnme rate and commitment arrargements wnich tcgether witn 31.1979. is comonsed cf $242208.000 fees of 4 of 1% orless are calculated cena n term loans provice fcr ::crrow- fer f:nancing construe::en and nuclear en unusedlines of crect(based ucen ings cf ec to $135.000.000 and 'uel excenartures and 545,100.000 the respective Trusts' revetving crec.t | snare of construct:cn and nuclear fuel make certain investments. :nctucing The Rescurces Trust and the Cen-ccsts for Nine Mile Point Unit 2.The investmentsin the Comcany's struction Trust interest en bcrrowings Rescurces Trust and tre Ccnstruction prem:sscry notes.The Trusts' total is calculatec, pnnc:cally at 105% of the Trust pnnc: pally nave revolving credit cbligatico of $287.3C8.000 at Decemcer prevailing pnme rate and commitment arrargements wnich tcgether witn 31.1979. is comonsed cf $242208.000 fees of 4 of 1% orless are calculated cena n term loans provice fcr ::crrow- fer f:nancing construe::en and nuclear en unusedlines of crect(based ucen ings cf ec to $135.000.000 and 'uel excenartures and 545,100.000 the respective Trusts' revetving crec.t | ||
$300.000.000 respective!y.The utifi:ed cy the Comcany for general arrangements).The Trusts' interest enmary revciving crec:t !can of the ccrecrate pur::cses. costs of borrowings utilized to finance Pescurces Trust matures in Sectember The Comcanyis celigatecto arrange constructicn anc nuclear fuel are 1983 and cr0v:ces that the fencng to curenase nuclear'uel owned by the reflected in the Cemcany's Ccnstruc-t:anks may, eacn year, efect ic extend Rescurces Trus:. or heat' rem sucn fuel, tien and Nuc! ear Fueiin Trusts | $300.000.000 respective!y.The utifi:ed cy the Comcany for general arrangements).The Trusts' interest enmary revciving crec:t !can of the ccrecrate pur::cses. costs of borrowings utilized to finance Pescurces Trust matures in Sectember The Comcanyis celigatecto arrange constructicn anc nuclear fuel are 1983 and cr0v:ces that the fencng to curenase nuclear'uel owned by the reflected in the Cemcany's Ccnstruc-t:anks may, eacn year, efect ic extend Rescurces Trus:. or heat' rem sucn fuel, tien and Nuc! ear Fueiin Trusts 26 | ||
26 | |||
accounts anc is c;cuctcc currcntly for sucptes of ed at thoicwest ecst to crojects. tao Ccmpany has mace tax curcoses en the Cemcany's censumers. Cesc.te tnis conclusien, sucstantial ieng-range cc-mitmerts tax retum. the Company reccgnizes. Inat recent for nuc. ear fuei. inc:uding contracts The Trusts' average annuaiinterest events. sucn as the incident at with Sckum Pescurces Corporaten rate (exc!ucing comm:tment fees > for Metrepetitan Ecisen Company's Three (a cevelecment stage ccmcany)for average corrowings of $231.550.000 Mde is:anc Nuclear Generatng Stat:en. 10 mdlien ecunds of uranium anc Sc9.C62.000 outstancing cunng the are having a natenwice imcact en ccncentrates. The centracts for years 1979 and 1978 was 13 2% and nucl ear cacitalinvestment to an extent uranium cencentrates crevice fee - | accounts anc is c;cuctcc currcntly for sucptes of ed at thoicwest ecst to crojects. tao Ccmpany has mace tax curcoses en the Cemcany's censumers. Cesc.te tnis conclusien, sucstantial ieng-range cc-mitmerts tax retum. the Company reccgnizes. Inat recent for nuc. ear fuei. inc:uding contracts The Trusts' average annuaiinterest events. sucn as the incident at with Sckum Pescurces Corporaten rate (exc!ucing comm:tment fees > for Metrepetitan Ecisen Company's Three (a cevelecment stage ccmcany)for average corrowings of $231.550.000 Mde is:anc Nuclear Generatng Stat:en. 10 mdlien ecunds of uranium anc Sc9.C62.000 outstancing cunng the are having a natenwice imcact en ccncentrates. The centracts for years 1979 and 1978 was 13 2% and nucl ear cacitalinvestment to an extent uranium cencentrates crevice fee - | ||
106%.respectvety Of thetctalaver- in targe part uncetermined. There can acvance cayments of $20.000.C{0-a e cerrowegs. $35.018.000 anc be no assurance that necessary $15.350.000 cf wnicn nas been parc by 539.303.000 reiatec to generai cercor- iicenses anc accrevais woice gramed ' me Cemeany anc tne caiance cy New are purposes for the respect:ve penocs. to tne Ccmpany by me apprcenate Ycrk State E!ectne and Gas Note 7. Cornmitments and Federal anc State govemmental Corporation. Bokum has notfiec the Contingencies agencies for the Comcany's nuc! ear Ccmpany that Sekum is in cefau.t The Comcany's excenc;tures for projects. The Company believes that uncer tne contracts provicmg for the constructen and nucl ear fuel for the uncer present statutes and regulations. cekvery of the uranium concentrates years 1980 througn 1984 as esumated the necessary licenses and accrova!s and also uncer the provisions of a at Cecemcer 31.1979. total will be received for me Shcreham and financing agreement previcing for acprcximately $2.2 billion and Nine Mde Pomt Unit 2 crojects. loans to Bckum cf $51.100.000 to assume tmeiy and acecuate rate On January 29.1980. a New York cevelec a uranium mine and to re9ef and financ:ng. State Scarc on E:ecmc Generaben ccnstruct an ore-crecessir'g mdl At Sucstantialecmmitments have been S.tng anc the Envircnment wnich had Decemcer 31,1979, the amount cwec mace fer me Cemcany's ccnstruccon been consicenng me acclicaten for the the Ccmpany by Sexum forIcans and program. :nc!ucing commitments fer nuclear generating staton at interest was $49.557.000. The !can me nuc: ear generat.ng statens at Jamesecrt voted to accrove the cen- bears interest at 10.5% per annum and Shcrenam and Nine Mi!e Point Unit 2 structen of an 800 megawatt ccal-fired is secured by, among etner ngnts. an wnicn are uncer constructon. Subject unit on Long Island. Before ccnstruc- assignment ofleases anc a mcrtgage to the resu!!s of contnuing rewew,the tion can begin, a final creer must ce on certain of Bekum's assets. The estmatec costs at ccmcfetion of the entered, appeats. if any, must be reement Shcreham Unit and me Company's exnausted. environmental permits terms proviceofforrecaymento the financing ac[LILCO's tcans snare of Nine Mi:e Point Unit 2 must be cbtainec and the un t must be and interest thereen from 1981 to 1986. | 106%.respectvety Of thetctalaver- in targe part uncetermined. There can acvance cayments of $20.000.C{0-a e cerrowegs. $35.018.000 anc be no assurance that necessary $15.350.000 cf wnicn nas been parc by 539.303.000 reiatec to generai cercor- iicenses anc accrevais woice gramed ' me Cemeany anc tne caiance cy New are purposes for the respect:ve penocs. to tne Ccmpany by me apprcenate Ycrk State E!ectne and Gas Note 7. Cornmitments and Federal anc State govemmental Corporation. Bokum has notfiec the Contingencies agencies for the Comcany's nuc! ear Ccmpany that Sekum is in cefau.t The Comcany's excenc;tures for projects. The Company believes that uncer tne contracts provicmg for the constructen and nucl ear fuel for the uncer present statutes and regulations. cekvery of the uranium concentrates years 1980 througn 1984 as esumated the necessary licenses and accrova!s and also uncer the provisions of a at Cecemcer 31.1979. total will be received for me Shcreham and financing agreement previcing for acprcximately $2.2 billion and Nine Mde Pomt Unit 2 crojects. loans to Bckum cf $51.100.000 to assume tmeiy and acecuate rate On January 29.1980. a New York cevelec a uranium mine and to re9ef and financ:ng. State Scarc on E:ecmc Generaben ccnstruct an ore-crecessir'g mdl At Sucstantialecmmitments have been S.tng anc the Envircnment wnich had Decemcer 31,1979, the amount cwec mace fer me Cemcany's ccnstruccon been consicenng me acclicaten for the the Ccmpany by Sexum forIcans and program. :nc!ucing commitments fer nuclear generating staton at interest was $49.557.000. The !can me nuc: ear generat.ng statens at Jamesecrt voted to accrove the cen- bears interest at 10.5% per annum and Shcrenam and Nine Mi!e Point Unit 2 structen of an 800 megawatt ccal-fired is secured by, among etner ngnts. an wnicn are uncer constructon. Subject unit on Long Island. Before ccnstruc- assignment ofleases anc a mcrtgage to the resu!!s of contnuing rewew,the tion can begin, a final creer must ce on certain of Bekum's assets. The estmatec costs at ccmcfetion of the entered, appeats. if any, must be reement Shcreham Unit and me Company's exnausted. environmental permits terms proviceofforrecaymento the financing ac[LILCO's tcans snare of Nine Mi:e Point Unit 2 must be cbtainec and the un t must be and interest thereen from 1981 to 1986. | ||
Line 1,355: | Line 867: | ||
27 | 27 | ||
Note 8. Lorig-term Debt at December 31 1.ong-term Debt at Decerrcer 31 (in tncusancs cf ce!!ars) | Note 8. Lorig-term Debt at December 31 1.ong-term Debt at Decerrcer 31 (in tncusancs cf ce!!ars) | ||
Allof the First Mortgage Bencs are Rate ofInterest Sener Due 1979 1978 issued uncer the First Mortgage.The First Mortgage Bonds General anc Refunc:ng Bonds are issued uncertne Generalanc 3 % A 1980 s 20,000 s 20.000 Refuncing incenture (G & R Mertgage). 3% E 1982 20,000 20.000 The First Mcr gage is a direct first lien 3% F 1983 25,000 --25 000 en sucstantially ail of the Company'c 3% G 1984 15,000 - -.15.000 prCpert:es. The lien of the G & R 3% H 1988 15,000 15.000 Mortgage onsucstantra!!yallof the 4% i 1986 20,000 20.0C0 same propert:es is junior to the lien of 4'6 J 1988 20,000 20.000 tne First Mortgage. All First Mertgage 5 L 1991 25,000 25.000 Bonos. issuec on a 1 atterJune 1.1975, 4.40 M 1993 40 000 40.000 are held by the Trustee of the G & R N 1994 25,000 ' 25.000 4% | Allof the First Mortgage Bencs are Rate ofInterest Sener Due 1979 1978 issued uncer the First Mortgage.The First Mortgage Bonds General anc Refunc:ng Bonds are issued uncertne Generalanc 3 % A 1980 s 20,000 s 20.000 Refuncing incenture (G & R Mertgage). 3% E 1982 20,000 20.000 The First Mcr gage is a direct first lien 3% F 1983 25,000 --25 000 en sucstantially ail of the Company'c 3% G 1984 15,000 - -.15.000 prCpert:es. The lien of the G & R 3% H 1988 15,000 15.000 Mortgage onsucstantra!!yallof the 4% i 1986 20,000 20.0C0 same propert:es is junior to the lien of 4'6 J 1988 20,000 20.000 tne First Mortgage. All First Mertgage 5 L 1991 25,000 25.000 Bonos. issuec on a 1 atterJune 1.1975, 4.40 M 1993 40 000 40.000 are held by the Trustee of the G & R N 1994 25,000 ' 25.000 4% | ||
Line 1,363: | Line 873: | ||
1,185,000 998.C00 tLess-Decesited with Trustee of the General anc Refunding incenture as accitzenal secunty for General and Aeruncing 8cncs 490,000 303.0C0 695,000 695,000 Less-current matunties 20,000 - | 1,185,000 998.C00 tLess-Decesited with Trustee of the General anc Refunding incenture as accitzenal secunty for General and Aeruncing 8cncs 490,000 303.0C0 695,000 695,000 Less-current matunties 20,000 - | ||
Total First Mortgage Bends 675,000 695.000 General and Refunding Bonds 9% % Senes Due 1983 80,000 80.000 9% % Senes Due 1984 90,000 90.000 9% % Senes Due 2006 70,000 70.000 8% %SenesDue2006 50,000 50.000 8% % Senes Due 2007 85,000 85.000 9.20% Senes Due 2008 75,000 75.C00 9.75% Senes Due 1999 100,000 - | Total First Mortgage Bends 675,000 695.000 General and Refunding Bonds 9% % Senes Due 1983 80,000 80.000 9% % Senes Due 1984 90,000 90.000 9% % Senes Due 2006 70,000 70.000 8% %SenesDue2006 50,000 50.000 8% % Senes Due 2007 85,000 85.000 9.20% Senes Due 2008 75,000 75.C00 9.75% Senes Due 1999 100,000 - | ||
TotalGeneral and Refuncing Seccs 550.000 450.000 Other Long-term Debt 7%%-Authen:y Rnanc:ng Nctes 2006 30,375 30.375 7.8%- Authenty Financ:ng Ncte 2009 19,100 - | TotalGeneral and Refuncing Seccs 550.000 450.000 Other Long-term Debt 7%%-Authen:y Rnanc:ng Nctes 2006 30,375 30.375 7.8%- Authenty Financ:ng Ncte 2009 19,100 - | ||
l 8%% Pmmisscry Nctes 1985 287 324 | l 8%% Pmmisscry Nctes 1985 287 324 | ||
! Less-Current Maturty | ! Less-Current Maturty on 8%% Promissory Nctes 40 37 Tctal Other Leng-term Dect 49,722 30.662 Total Long-term Debt $1.274.722 $1.175 662 The angregate of the Ccmcany s !ct g-term cect cue in tt'e fwe years encec Decemcer 31.1954is:520.000.000 f1980). 550.C00 000 (1981 ) $72.000.000 (1982). $107.000.000 (1983) anc $107.000.000 (1984). | ||
on 8%% Promissory Nctes 40 37 Tctal Other Leng-term Dect 49,722 30.662 Total Long-term Debt $1.274.722 $1.175 662 The angregate of the Ccmcany s !ct g-term cect cue in tt'e fwe years encec Decemcer 31.1954is:520.000.000 f1980). 550.C00 000 (1981 ) $72.000.000 (1982). $107.000.000 (1983) anc $107.000.000 (1984). | |||
28 | 28 | ||
. l | . l No'D9.SegmentsCf Business Tne Cer Cany is a cut:!ic ut!ity ccerat.ng cerncany ergaged in tre generaten.c stntuten. anc sa!e cf erectnc energy anc tre purenase.cistr:cuten. anc sa:e of natural gas. | ||
1979 1978 Total Total 1 (in ncusancs Of cellars) Electric Gas Company E ectr:c Gus Ccmcay Operating Information _. | |||
No'D9.SegmentsCf Business Tne Cer Cany is a cut:!ic ut!ity ccerat.ng cerncany ergaged in tre generaten.c stntuten. anc sa!e cf erectnc energy anc tre purenase.cistr:cuten. anc sa:e of natural gas. | |||
1979 1978 Total Total 1 | |||
(in ncusancs Of cellars) Electric Gas Company E ectr:c Gus Ccmcay Operating Information _. | |||
(Year encec Cecamcer 31): | (Year encec Cecamcer 31): | ||
Revem e S 860,798 $184,700 $1,045,498 5 738.339 516'O 632 5 898.971 Excenses (exc ucing mccrre tax) 698,648 158,384 857,032 573.589 133.t 14 706.703 Oceratrg incorae (tetcre incorre tax) $ 162,150 $ 26,316 3 164.466 5 164.750 5 27.513 5 192.268 ' | Revem e S 860,798 $184,700 $1,045,498 5 738.339 516'O 632 5 898.971 Excenses (exc ucing mccrre tax) 698,648 158,384 857,032 573.589 133.t 14 706.703 Oceratrg incorae (tetcre incorre tax) $ 162,150 $ 26,316 3 164.466 5 164.750 5 27.513 5 192.268 ' | ||
AFC anc etner 62,215 46.268 interest charges 86,974 78.032 inccme taxes-ccerat:ng 17,482 31.480 Inccr e taxes-noncceratirq crecit 15,438 12.969 Net :ncome per accomcany!rg State-est of 'ncome $ 161.663 5 141.993 Other information iYear enced Cecemcer 31): | AFC anc etner 62,215 46.268 interest charges 86,974 78.032 inccme taxes-ccerat:ng 17,482 31.480 Inccr e taxes-noncceratirq crecit 15,438 12.969 Net :ncome per accomcany!rg State-est of 'ncome $ 161.663 5 141.993 Other information iYear enced Cecemcer 31): | ||
Cecrec.aten excense $ 47,872 5 6,188 3 54,060 5 45.217 5 5.975 S 51.192 Cacca excenc:tures for construct cn anc ruc ear'uei 450,549 14,537 465,086 407.032 3 821 415.353 investment Information | Cecrec.aten excense $ 47,872 5 6,188 3 54,060 5 45.217 5 5.975 S 51.192 Cacca excenc:tures for construct cn anc ruc ear'uei 450,549 14,537 465,086 407.032 3 821 415.353 investment Information | ||
Line 1,393: | Line 894: | ||
*Nrc Cuarter 1979 291,953 56,673 53,707 45,587 0.87 1973 238.472 49256 43.540 35.863 0 30 Fourtn Cuaner 1979 255,832 28,524 27,756 18,321 0.32 1979 209.350 28.274 23.368 15.703 0.32 29 | *Nrc Cuarter 1979 291,953 56,673 53,707 45,587 0.87 1973 238.472 49256 43.540 35.863 0 30 Fourtn Cuaner 1979 255,832 28,524 27,756 18,321 0.32 1979 209.350 28.274 23.368 15.703 0.32 29 | ||
Nat)11. Supplementary Information At Decemcer 31.1979, tha ecst of Concerning the Effects of inflation procerty. plant and equipment, net cf (Unaudited) accumulated deprec:ation, restatec for Througneut the decades fellowing inflation sint.e year of excenc:ture. was Wcrid War 11. the utility incustry has $4.5 billion while h:storical ccst net of constantly pointed cut to ec0nomistc. accumulated'depreciat:cn was $3.1 regulators and law maker.that biilion. | Nat)11. Supplementary Information At Decemcer 31.1979, tha ecst of Concerning the Effects of inflation procerty. plant and equipment, net cf (Unaudited) accumulated deprec:ation, restatec for Througneut the decades fellowing inflation sint.e year of excenc:ture. was Wcrid War 11. the utility incustry has $4.5 billion while h:storical ccst net of constantly pointed cut to ec0nomistc. accumulated'depreciat:cn was $3.1 regulators and law maker.that biilion. | ||
-~ | -~ | ||
Line 1,409: | Line 908: | ||
30 | 30 | ||
Hist:ric:1 Statistics Electric Operating income onincusanes ce cesarsi -- | Hist:ric:1 Statistics Electric Operating income onincusanes ce cesarsi -- | ||
1979 1978 1977 1976 1975 . 1974 1969 i Revenues , | 1979 1978 1977 1976 1975 . 1974 1969 i Revenues , | ||
Res: cent:al $ 400,936 $348.307 S326.035 S284.774 S266.077 5232.431 S101.097 i Commerc:a1 and lncustnal 393,040 337.521 315.952 270.513 256.762 223.204 87.985 l Street anc hignway !,gnting 12,209 12.743 12.817 12.619 12.472 10.869 8.626 Ctrer cuctic authertes 15,240 13.615 13.647 11.005 11.988 10.680- 2.465 Otner utilit:es 564 921 1.287 543 725 731 435 Cther 5,949 4.885 3.578 2,747 2.228 709 83 System revenue 827,938 717.992 673.316 582.201 550.252 478.624 200.692 Pcwer cocis 32,860 20.347 9 681 7.464 7.719 7,710 5.852 Tctal Revenues 860,796 738.339 682.997 589.665 557.971 486.334 206.544 Expenses Ocerat:cns -fuel and curenased cower 389,622 294.911 290.576 238.185 236.329 219.406 34.190 Ocerat.cns -cther 89,071 78.328 72.860 66.101 59.182 52.841 31.290 Vaintenance 43,587 37.086 32.665 32.501 30.164 24.803 16.431 Decrec:at:cn 47,872 45.217 39.451 37,399 35.267 32.604 22.728 Operatog taxes 128,496 118.047 109.285 100,102 91.326 79.925 38.999 Feceralinccme tax -current (7,816) 1,110 4 800 (4.398) 5.655 (3.098) 15.235 Feceral inccme tax -ceferred and other 18,933 24.249 15.399 13.752 3.695 5.195 (324) 7ctal Ecenses 709,765 598.948 565.066 483.642 461.618 411.676 158.549 Operating Income $151,033 S139.391 $117.931 S106.023 S 96.353 S 74.658 S 47.995 Gas Operating income onincusancs et ccitars) l 1979 1978 1977 1976 1975 1974 1969 Revenues l | Res: cent:al $ 400,936 $348.307 S326.035 S284.774 S266.077 5232.431 S101.097 i Commerc:a1 and lncustnal 393,040 337.521 315.952 270.513 256.762 223.204 87.985 l Street anc hignway !,gnting 12,209 12.743 12.817 12.619 12.472 10.869 8.626 Ctrer cuctic authertes 15,240 13.615 13.647 11.005 11.988 10.680- 2.465 Otner utilit:es 564 921 1.287 543 725 731 435 Cther 5,949 4.885 3.578 2,747 2.228 709 83 System revenue 827,938 717.992 673.316 582.201 550.252 478.624 200.692 Pcwer cocis 32,860 20.347 9 681 7.464 7.719 7,710 5.852 Tctal Revenues 860,796 738.339 682.997 589.665 557.971 486.334 206.544 Expenses Ocerat:cns -fuel and curenased cower 389,622 294.911 290.576 238.185 236.329 219.406 34.190 Ocerat.cns -cther 89,071 78.328 72.860 66.101 59.182 52.841 31.290 Vaintenance 43,587 37.086 32.665 32.501 30.164 24.803 16.431 Decrec:at:cn 47,872 45.217 39.451 37,399 35.267 32.604 22.728 Operatog taxes 128,496 118.047 109.285 100,102 91.326 79.925 38.999 Feceralinccme tax -current (7,816) 1,110 4 800 (4.398) 5.655 (3.098) 15.235 Feceral inccme tax -ceferred and other 18,933 24.249 15.399 13.752 3.695 5.195 (324) 7ctal Ecenses 709,765 598.948 565.066 483.642 461.618 411.676 158.549 Operating Income $151,033 S139.391 $117.931 S106.023 S 96.353 S 74.658 S 47.995 Gas Operating income onincusancs et ccitars) l 1979 1978 1977 1976 1975 1974 1969 Revenues l | ||
Resicent al-Scace neat;ng* $ 93.077 $ 88.168 5 75.626 S 74.225 5 61.592 S 52.308 5 38.957 | Resicent al-Scace neat;ng* $ 93.077 $ 88.168 5 75.626 S 74.225 5 61.592 S 52.308 5 38.957 | ||
-cther 23,861 21.098 18.672 17,734 16.672 14.988 12.324 i Ncn-residential. hrm-scace neating' 32,903 30.726 25.505 25.394 20.118 17.229 11.620 ! | -cther 23,861 21.098 18.672 17,734 16.672 14.988 12.324 i Ncn-residential. hrm-scace neating' 32,903 30.726 25.505 25.394 20.118 17.229 11.620 ! | ||
-ctrer 17,383 14.742 12.490 11.874 10.685 8.927 6.597 Tcta15rm sales revenue 167,224 154 734 132.293 129.227 109.067 93.452 69.498 Interruct:c e 15,674 4.127 7.247 4.217 2,980 4564 2,710 7ctai system saies revenue 182,898 158.861 139.540 133.444 112.047 98.016 72.2C8 Ctner util.t.es 1,467 1.485 1.463 1.462 1.463 2.126 1.400 Tctai sa!es revenue 184,365 160.346 141 003 134.906 113.510 100.142 73.608 Ctner revenue 335 286 30 18 46 27 6 Tetal ccerating revenue $184,700 S160.632 5141.083 $134.924 S113.556 $100,169 3 73.614 Expenses Ccerat: ens-Net 88,794 70.396 59.589 54.522 44.126 31.310 21.359 Ccerat: ens-otner 29,573 26.056 24.429 23.162 21,538 18.984 15.C49 | -ctrer 17,383 14.742 12.490 11.874 10.685 8.927 6.597 Tcta15rm sales revenue 167,224 154 734 132.293 129.227 109.067 93.452 69.498 Interruct:c e 15,674 4.127 7.247 4.217 2,980 4564 2,710 7ctai system saies revenue 182,898 158.861 139.540 133.444 112.047 98.016 72.2C8 Ctner util.t.es 1,467 1.485 1.463 1.462 1.463 2.126 1.400 Tctai sa!es revenue 184,365 160.346 141 003 134.906 113.510 100.142 73.608 Ctner revenue 335 286 30 18 46 27 6 Tetal ccerating revenue $184,700 S160.632 5141.083 $134.924 S113.556 $100,169 3 73.614 Expenses Ccerat: ens-Net 88,794 70.396 59.589 54.522 44.126 31.310 21.359 Ccerat: ens-otner 29,573 26.056 24.429 23.162 21,538 18.984 15.C49 | ||
Line 1,424: | Line 919: | ||
31 | 31 | ||
i Common Stock Data 1979 1978 1977 1976 1975 1974 1969 inceme for common stoex (SOCO) $128,812 5111.305 $104.593 S 86.787 S 66.984 5 47.721 S35.324 Average commen shares outstanding (CCO) 53,366 45.670 40.399 34.437 28.949 23.565 18.2C9 Earned per commen snare $ 2.41 S 2.44 $ 2.59 5 2.52 5 2.31 S 2.03 S 1.94 Dividencs paid per snare $ 1.74 5 1.68% $ 1.61 % 5 1.54% S 1.49 5 1.46 iS~i .28% | |||
i | |||
Common Stock Data 1979 1978 1977 1976 1975 1974 1969 inceme for common stoex (SOCO) $128,812 5111.305 $104.593 S 86.787 S 66.984 5 47.721 S35.324 Average commen shares outstanding (CCO) 53,366 45.670 40.399 34.437 28.949 23.565 18.2C9 Earned per commen snare $ 2.41 S 2.44 $ 2.59 5 2.52 5 2.31 S 2.03 S 1.94 Dividencs paid per snare $ 1.74 5 1.68% $ 1.61 % 5 1.54% S 1.49 5 1.46 iS~i .28% | |||
Bock value per snare at year.end $ 18.88 5 19.12 5 18.70 S 17.93 S 17.19 S 17.81 $ 15.40 Commen snareewners at year.end 151.752 143 267 130.018 123.057 116.008 102.251 82.940 Operating Ratios 1979 1978 1977 1976 1975 1974 1969 Percent of Total Revenues Etectr!c 82.3 % 82.1 % 82.9% 81.4 % 83.1 % 82.9 % 73.7 % | Bock value per snare at year.end $ 18.88 5 19.12 5 18.70 S 17.93 S 17.19 S 17.81 $ 15.40 Commen snareewners at year.end 151.752 143 267 130.018 123.057 116.008 102.251 82.940 Operating Ratios 1979 1978 1977 1976 1975 1974 1969 Percent of Total Revenues Etectr!c 82.3 % 82.1 % 82.9% 81.4 % 83.1 % 82.9 % 73.7 % | ||
Gas 17.7 179 17.1 18.6 15.9 17.1 26.3 Percent of Electric Revenue Operations excense-fuel and purchased power 45.3 % 39.9% 42.5% 40.4 % 42.4 % 45.1 % 16.5% | Gas 17.7 179 17.1 18.6 15.9 17.1 26.3 Percent of Electric Revenue Operations excense-fuel and purchased power 45.3 % 39.9% 42.5% 40.4 % 42.4 % 45.1 % 16.5% | ||
Line 1,433: | Line 925: | ||
Ocerat.no !ncome 17.5% 18.9% 172% 18 0% 173% 15.4% 23.2 % | Ocerat.no !ncome 17.5% 18.9% 172% 18 0% 173% 15.4% 23.2 % | ||
Percent of Gas Revenue Operatens expense-fuet 48.1% 43 8 % 42.5% 40.4 % 38.9 % 31.3 % 29.0% | Percent of Gas Revenue Operatens expense-fuet 48.1% 43 8 % 42.5% 40.4 % 38.9 % 31.3 % 29.0% | ||
Operatens expense-cther 16.0 162 17.3 17.2 18.9 18.9 20.4 l Maintenance excense 4.7 47 5.9 5.2 6.2 6.3 5.3 Total Ocerations and Maintenance Excense 68.8% 64.7% 65.7% 62.8 % 64 0% 56.5 % 54.7% | Operatens expense-cther 16.0 162 17.3 17.2 18.9 18.9 20.4 l Maintenance excense 4.7 47 5.9 5.2 6.2 6.3 5.3 Total Ocerations and Maintenance Excense 68.8% 64.7% 65.7% 62.8 % 64 0% 56.5 % 54.7% | ||
Ocerating income 10.8% 13 3% 12 5% 13.4% 12 9 % 179% 18.3% | Ocerating income 10.8% 13 3% 12 5% 13.4% 12 9 % 179% 18.3% | ||
Line 1,439: | Line 930: | ||
Gas 14.0 14 3 13.0 166 12 8 20 8 21.7 Operations and Maintenance Expense Details ontrousanes oreenars) 1979 1978 1977 1976 1975 1974 1969 Tctal payrcil and emcicyee cenefits $150,479 S139.334 5125.013 $118.379 $107.400 $100.008 568.756 Less -Charged to constructicn and Other 49,065 47.367 39.873 37.558 32.888 31.335 20.992 Cnarged to ccerat: ens 101,414 91.967 86.140 80.821 74 512 68.673 47.764 Fuels-electnc cperatens 295,428 244.546 258.988 216.264 228.151 224.105 33.942 i | Gas 14.0 14 3 13.0 166 12 8 20 8 21.7 Operations and Maintenance Expense Details ontrousanes oreenars) 1979 1978 1977 1976 1975 1974 1969 Tctal payrcil and emcicyee cenefits $150,479 S139.334 5125.013 $118.379 $107.400 $100.008 568.756 Less -Charged to constructicn and Other 49,065 47.367 39.873 37.558 32.888 31.335 20.992 Cnarged to ccerat: ens 101,414 91.967 86.140 80.821 74 512 68.673 47.764 Fuels-electnc cperatens 295,428 244.546 258.988 216.264 228.151 224.105 33.942 i | ||
Fue!s-gas ccerations 88,794 70.396 59.889 54.522 44.126 31.310 21.359 i Purcrased power cests 108,772 43.564 30.752 22.916 8.219 5 664 248 E:ectne fuel ecst aclustment ceferred (14.578) 6.801 836 (995) (41) (10.363) - | Fue!s-gas ccerations 88,794 70.396 59.889 54.522 44.126 31.310 21.359 i Purcrased power cests 108,772 43.564 30.752 22.916 8.219 5 664 248 E:ectne fuel ecst aclustment ceferred (14.578) 6.801 836 (995) (41) (10.363) - | ||
7ctai Fuel anc Purcnasec Pcwer 478.416 365.307 350.465 292.707 290.455 250.716 55.549 All ctner 69.436 57.077 52.084 47.918 43.372 34 301 18.875 Tctal Oceratens anc Maintenance 5649.266 5514.351 5488.689 5421.446 3398 339 S353.690 $122.188 Emcioveas at Decemcer 31 5.563 5.442 5.381 5.444 5.446 5.426 5.468 | 7ctai Fuel anc Purcnasec Pcwer 478.416 365.307 350.465 292.707 290.455 250.716 55.549 All ctner 69.436 57.077 52.084 47.918 43.372 34 301 18.875 Tctal Oceratens anc Maintenance 5649.266 5514.351 5488.689 5421.446 3398 339 S353.690 $122.188 Emcioveas at Decemcer 31 5.563 5.442 5.381 5.444 5.446 5.426 5.468 l | ||
l l | l l | ||
32 l l | |||
Electric Operations ~ | Electric Operations ~ | ||
1979 1973 1977 1976 1975 1974 1969 Energy-mukces of kWM Net generat.cn 11.085 12.739 12.710 12.450 12.354 12.795 10 710 D *er curenasec andtscici-net 2,636 980 889 268 159 (39) (732) 7ctal system requirements 13,721 13 719 13.599 13318 13.013 12.7C6 317j" Ccmcany use anc unac:curtec for (1.254) t12821 f 1.225) I1 326) (1.301 J 1.235) 977) system sares 12,467 12.437 12.374 11 992 11.712 11.421 9.001 Po.ver cect saies 852 790 346 250 290 314 753 Totai Sa'es 13.319 13 227 12.720 12 242 12.002 11 735 9 754 Peak Demand-net MW Stat cn coinc: cent cemanc 2,718 2.599 2.994 2.566 2.597 2.553 2.065 Purenasec or a scic) 201 98 113 153 335 246 (60) | 1979 1973 1977 1976 1975 1974 1969 Energy-mukces of kWM Net generat.cn 11.085 12.739 12.710 12.450 12.354 12.795 10 710 D *er curenasec andtscici-net 2,636 980 889 268 159 (39) (732) 7ctal system requirements 13,721 13 719 13.599 13318 13.013 12.7C6 317j" Ccmcany use anc unac:curtec for (1.254) t12821 f 1.225) I1 326) (1.301 J 1.235) 977) system sares 12,467 12.437 12.374 11 992 11.712 11.421 9.001 Po.ver cect saies 852 790 346 250 290 314 753 Totai Sa'es 13.319 13 227 12.720 12 242 12.002 11 735 9 754 Peak Demand-net MW Stat cn coinc: cent cemanc 2,718 2.599 2.994 2.566 2.597 2.553 2.065 Purenasec or a scic) 201 98 113 153 335 246 (60) | ||
Line 1,458: | Line 945: | ||
Svs:em sales 43.625 42.034 42.715 43.148 40.514 44557 42 201 Sa:es to ctrer utet.es - - - - - | Svs:em sales 43.625 42.034 42.715 43.148 40.514 44557 42 201 Sa:es to ctrer utet.es - - - - - | ||
349 - | 349 - | ||
7ctai Sa:es 43.625 42.034 42115 43 146 40.514 44 9C6 42.201 Maximum Day Sendeut-Tcf # 1 C00 Stu) 336.996 303 344 340 624 325826 2'3 100 301 500 265 700 Capab611ty at Time of Peak-mcf :er :ay Naturaf gas 307.200 3C3 500 326.500 326.5C0 328 900 314 700 285.600 Va uta :arec LP cr LNG ;as 142.300 142.300 1483C0 143 3C0 148 300 153 300 79 6C0 7cta; Catac.14tv 449.500 4455C0 474 5C0 474 3C0 47 200 463 CC0 265 200 Natural Gas Purchased E'ec:rc cceratecns-thousancs cf mc! 2.726 75 1 973 1.195 1.227 3 na 11 592 Gas c:eraticns-tscusancs of mcf 46.103 43.967 44638 45.690 42.535 46217 44 372 70!al Natural Gas P ,r: asec 48.829 u 042 46 616 46 285 43 762 50 261 56264 Calendar Degree Days i53% ear ave a;e 5.095 l 4.622 5.432 5.173 5 373 4 729 4 921 5.029 | 7ctai Sa:es 43.625 42.034 42115 43 146 40.514 44 9C6 42.201 Maximum Day Sendeut-Tcf # 1 C00 Stu) 336.996 303 344 340 624 325826 2'3 100 301 500 265 700 Capab611ty at Time of Peak-mcf :er :ay Naturaf gas 307.200 3C3 500 326.500 326.5C0 328 900 314 700 285.600 Va uta :arec LP cr LNG ;as 142.300 142.300 1483C0 143 3C0 148 300 153 300 79 6C0 7cta; Catac.14tv 449.500 4455C0 474 5C0 474 3C0 47 200 463 CC0 265 200 Natural Gas Purchased E'ec:rc cceratecns-thousancs cf mc! 2.726 75 1 973 1.195 1.227 3 na 11 592 Gas c:eraticns-tscusancs of mcf 46.103 43.967 44638 45.690 42.535 46217 44 372 70!al Natural Gas P ,r: asec 48.829 u 042 46 616 46 285 43 762 50 261 56264 Calendar Degree Days i53% ear ave a;e 5.095 l 4.622 5.432 5.173 5 373 4 729 4 921 5.029 1 | ||
33 ! | |||
1 | 1 | ||
Electric Sales and Customers 1979 1978 1977 1976 1975 1974 1969 sales-miihens of kWh 4 | Electric Sales and Customers 1979 1978 1977 1976 1975 1974 1969 sales-miihens of kWh 4 | ||
Resscential 5.599 5.559 5.620 5.486 5.334 5.185 4.131 Commercial and tncustnal 6,291 6.259 6.120 5.905 5.757 5.621 4.442 Street and nignwa/hgnting 188 188 189 190 182 187 .154 Otner suche autnertes 370 399 397 386 405 394 - _ 224 Other ut;hties 19 32 48 25 34 34 50 System sales 12,467 12.437 12.374 11.992 11.712 11.421 9.001 Power occi sales 852 790 346 250 290 314 753 Tctal Saies 13,319 13.227 12.720 12.242 12.002 11.735 9.754 Customers-montnly average Resicential 806,325 798.288 791.8C8 784.359 776.178 766.612 702.273 Comtrercial and industnal 81,955 81.071 80.205 78.535 77.317 76.108 66.547 Others 4,137 4.014 3.881 3.882 4.027 2.790 3.355 Customers-total menthly average 892.417 883.373 875.894 866.776 857.522 845.510 772.175 Customers-tcral at vear enc 892,772 885.591 877.022 869.126 859.527 S48.236 776.680 Residential kWh per customer 6,944 6.964 7.C98 6.994 6.872 6.763 5.882 Revenue cer kWh 7.16e 6.27c 5.8Cc 5.190 4 99c 4.48c 2.45c Commercial and Industrial i kWh cer customer 76,762 77.204 76.309 75.197 74.455 73.849 66.755 l Revenue per kWh 6.25c 5.39c 5.16c 4 Sac 4 46c 3.97c 1.97c j | Resscential 5.599 5.559 5.620 5.486 5.334 5.185 4.131 Commercial and tncustnal 6,291 6.259 6.120 5.905 5.757 5.621 4.442 Street and nignwa/hgnting 188 188 189 190 182 187 .154 Otner suche autnertes 370 399 397 386 405 394 - _ 224 Other ut;hties 19 32 48 25 34 34 50 System sales 12,467 12.437 12.374 11.992 11.712 11.421 9.001 Power occi sales 852 790 346 250 290 314 753 Tctal Saies 13,319 13.227 12.720 12.242 12.002 11.735 9.754 Customers-montnly average Resicential 806,325 798.288 791.8C8 784.359 776.178 766.612 702.273 Comtrercial and industnal 81,955 81.071 80.205 78.535 77.317 76.108 66.547 Others 4,137 4.014 3.881 3.882 4.027 2.790 3.355 Customers-total menthly average 892.417 883.373 875.894 866.776 857.522 845.510 772.175 Customers-tcral at vear enc 892,772 885.591 877.022 869.126 859.527 S48.236 776.680 Residential kWh per customer 6,944 6.964 7.C98 6.994 6.872 6.763 5.882 Revenue cer kWh 7.16e 6.27c 5.8Cc 5.190 4 99c 4.48c 2.45c Commercial and Industrial i kWh cer customer 76,762 77.204 76.309 75.197 74.455 73.849 66.755 l Revenue per kWh 6.25c 5.39c 5.16c 4 Sac 4 46c 3.97c 1.97c j Gas Sales and Customers 1979 1978 1977 1976 1975 1974 1969 Sales-thousands of mcf (1,000 Stu) | ||
Gas Sales and Customers 1979 1978 1977 1976 1975 1974 1969 Sales-thousands of mcf (1,000 Stu) | |||
Pesicental-space heating | Pesicental-space heating | ||
* 22,874 24.C85 23.887 24.357 22.544 23.023 21.661 | * 22,874 24.C85 23.887 24.357 22.544 23.023 21.661 | ||
Line 1,479: | Line 961: | ||
* 17,514 17.361 17.5C5 17.537 17.623 17.800 15.413 | * 17,514 17.361 17.5C5 17.537 17.623 17.800 15.413 | ||
-ctner 12.867 13.026 13.218 13.443 5 246 13.9C6 13.897 7ctat firm custcmers 387,225 386.935 388 232 389.473 390.332 390.229 380.293. | -ctner 12.867 13.026 13.218 13.443 5 246 13.9C6 13.897 7ctat firm custcmers 387,225 386.935 388 232 389.473 390.332 390.229 380.293. | ||
Interructibe 76 88 91 92 94 96 66 Customers-tetal menthly average 387,301 387 C23 388.323 389.565 390.426 390.325 380.359 Customers-tetal at vear enc 387,310 386.091 386.830 388.147 389.122 389 260 380.605 Degree days-cided 4.612 5.352 5.277 5.277 4.660 4.911 4 988 Residential mcf per custcmer 73.9 77.1 76.3 77.4 72.2 73.6 71 0 Pevenue cer met S 4.43 5 3.98 5 3.46 S 3 31 S 3.02 S 2.55 $ 2.C6 | Interructibe 76 88 91 92 94 96 66 Customers-tetal menthly average 387,301 387 C23 388.323 389.565 390.426 390.325 380.359 Customers-tetal at vear enc 387,310 386.091 386.830 388.147 389.122 389 260 380.605 Degree days-cided 4.612 5.352 5.277 5.277 4.660 4.911 4 988 Residential mcf per custcmer 73.9 77.1 76.3 77.4 72.2 73.6 71 0 Pevenue cer met S 4.43 5 3.98 5 3.46 S 3 31 S 3.02 S 2.55 $ 2.C6 Non-residential-firm mcf cer customer 429.3 428.0 418.2 429.1 402.5 414 8 391 0 | ||
Non-residential-firm | |||
mcf cer customer 429.3 428.0 418.2 429.1 402.5 414 8 391 0 | |||
:evenue cer mcf S 3.85 5 349 $ 2 96 3 2.80 5 244 5 1.99 $ 159 | :evenue cer mcf S 3.85 5 349 $ 2 96 3 2.80 5 244 5 1.99 $ 159 | ||
:n tne aeanng c: ass.t.catcrs. the sa'es snewn ecver att gas usec. .ne:uc.ng nennest.ng use. | :n tne aeanng c: ass.t.catcrs. the sa'es snewn ecver att gas usec. .ne:uc.ng nennest.ng use. | ||
34 . | 34 . | ||
I | I | ||
Balance Sheet atreuuces ot:caarsi 1979 1978 1977 1976 1975 1974 1969 Assets Ut2y Aant $3,611,962 33.167.601 32.775 231 32.398.900 32.097.019 51.825.666 St.103.042 Less- Accurau!atec cecrec:ation 526,992 486.865 456 019 413.3C5 377.720 349 935 223 660 Tctal utsty P! ant 3,084,970 2.580.736 2.319.212 1.985.595 1.719 299 1.475.731 37 0 &2 Ctner Precer y anc investments 76,985 70.784 3.972 3.803 3.892 1.193 672 Cur ent Assets 246,708 229.463 136.462 193.780 147.566 140.285 62.631 Oeferrec Charges: | Balance Sheet atreuuces ot:caarsi 1979 1978 1977 1976 1975 1974 1969 Assets Ut2y Aant $3,611,962 33.167.601 32.775 231 32.398.900 32.097.019 51.825.666 St.103.042 Less- Accurau!atec cecrec:ation 526,992 486.865 456 019 413.3C5 377.720 349 935 223 660 Tctal utsty P! ant 3,084,970 2.580.736 2.319.212 1.985.595 1.719 299 1.475.731 37 0 &2 Ctner Precer y anc investments 76,985 70.784 3.972 3.803 3.892 1.193 672 Cur ent Assets 246,708 229.463 136.462 193.780 147.566 140.285 62.631 Oeferrec Charges: | ||
E'ectne fuel cost ac;ustment ceterrec 22,709 3.131 14332 15,768 14.773 14.732 - | E'ectne fuel cost ac;ustment ceterrec 22,709 3.131 14332 15,768 14.773 14.732 - | ||
Line 1,502: | Line 975: | ||
Accumulated ceferred income tax tecue:.cns 54,901 49.926 42.835 35 264 27.519 19891 8.209 Ctner 2.458 7.213 2.008 2.640 3.171 799 341 70tal Ce'errec Crec:ts 57,359 57139 44843 37.904 30.690 20.690 S.550 Aeserves ter C:a.rns arc Camages 5,961 6.446 7.932 7.178 6 915 3.678 3.135 Tcta:Caota! cat:cn and Liaevit:es $3.459.582 S3 016.713 S2.546 545 52 207 721 51 902.621 51 639 483 S 942.472 35 | Accumulated ceferred income tax tecue:.cns 54,901 49.926 42.835 35 264 27.519 19891 8.209 Ctner 2.458 7.213 2.008 2.640 3.171 799 341 70tal Ce'errec Crec:ts 57,359 57139 44843 37.904 30.690 20.690 S.550 Aeserves ter C:a.rns arc Camages 5,961 6.446 7.932 7.178 6 915 3.678 3.135 Tcta:Caota! cat:cn and Liaevit:es $3.459.582 S3 016.713 S2.546 545 52 207 721 51 902.621 51 639 483 S 942.472 35 | ||
Construction Expenditures on: cusancs et coaarsi 1979 1979 1977 1976 1975 1974 1969 Electric Procuction 0ncludes censtruct:en trust) S362,689 5321,181 $279.207 5249.045 52'5.512 5169,043 524.643 Transrnssion 25,991 31.865 39.788 27.466 25.770 29.234 10.136 Cistreutron: --- | Construction Expenditures on: cusancs et coaarsi 1979 1979 1977 1976 1975 1974 1969 Electric Procuction 0ncludes censtruct:en trust) S362,689 5321,181 $279.207 5249.045 52'5.512 5169,043 524.643 Transrnssion 25,991 31.865 39.788 27.466 25.770 29.234 10.136 Cistreutron: --- | ||
* New ::us. ness facities 9,704 9.537 10.871 9.907 9.497 11.195 - - 13.127 | * New ::us. ness facities 9,704 9.537 10.871 9.907 9.497 11.195 - - 13.127 | ||
Line 1,509: | Line 980: | ||
* New ::usiness facil: ties 5,512 1.559 1.C83 303 530 1.787 5.422 | * New ::usiness facil: ties 5,512 1.559 1.C83 303 530 1.787 5.422 | ||
* Ctrer 'ac:ht.es 5,338 5.196 5.507 5.101 6.118 4.652 5.248 General 2.099 906 1.133 938 264 500 725 Tctai Gas 13.345 8.144 8.248 6.829 7.191 7.014 13.889 Common Operations centers - - - - | * Ctrer 'ac:ht.es 5,338 5.196 5.507 5.101 6.118 4.652 5.248 General 2.099 906 1.133 938 264 500 725 Tctai Gas 13.345 8.144 8.248 6.829 7.191 7.014 13.889 Common Operations centers - - - - | ||
11 97 1.480 Otrer 7,037 3.999 4.404 3.110 4.615 2.070 1.003 Tctal Commen 7,037 3.999 4.404 3.110 4.626 2.167 2.483 Tctal Construction Emenctures $439,546 S394.008 S359.420 $314.125 5281.455 S244.175 S 82.115 Retirements of Utility Plant S 19.860 $ 23 420 5 7.002 S 10.387 $ 17.400 S 8.787 5 13.364 | 11 97 1.480 Otrer 7,037 3.999 4.404 3.110 4.615 2.070 1.003 Tctal Commen 7,037 3.999 4.404 3.110 4.626 2.167 2.483 Tctal Construction Emenctures $439,546 S394.008 S359.420 $314.125 5281.455 S244.175 S 82.115 Retirements of Utility Plant S 19.860 $ 23 420 5 7.002 S 10.387 $ 17.400 S 8.787 5 13.364 36 | ||
36 | |||
Direct ~rs Nathaniel M. Giffen Eben W. Pyne William J. Casef Weds Ocunset to Pegers Ona.rman et:ce Scarc Senior v.ce P esicent La d rm anc Cn:ef Execut've CMicer C.t:carw. N.A. | Direct ~rs Nathaniel M. Giffen Eben W. Pyne William J. Casef Weds Ocunset to Pegers Ona.rman et:ce Scarc Senior v.ce P esicent La d rm anc Cn:ef Execut've CMicer C.t:carw. N.A. | ||
William J. Catacoshos p:tc4 Coun:y :ecers' Wilfred O. Uhl sa'<ings anc Loan =,es. cent Ona rman anc Assecaten On:et Executive Ctticer Lcng is:anc egrting Comcany~ | William J. Catacoshos p:tc4 Coun:y :ecers' Wilfred O. Uhl sa'<ings anc Loan =,es. cent Ona rman anc Assecaten On:et Executive Ctticer Lcng is:anc egrting Comcany~ | ||
Accuec Dgital Cata systems. inc. Lionel M. Goldberg Phyllis S. Vineyard ~~ | Accuec Dgital Cata systems. inc. Lionel M. Goldberg Phyllis S. Vineyard ~~ | ||
tectrentCs Vice P es: cent Ve -*e Edward C. Duffy Aexancer i A;exancer. mc. sf 3,r ,,,c , | tectrentCs Vice P es: cent Ve -*e Edward C. Duffy Aexancer i A;exancer. mc. sf 3,r ,,,c , | ||
insurance Healtn Cccrcinatng Petrec vice Cna.rman cf tne Scare Leng :stanc Lgnt.ng Comcany John D. Maxwell Ccunci Onairman anc o. rec:or voiuntary Nenprof t Winfleid E. Fromm <cumcr;en Carc. P'anning Agency Vrce P asiceat V'ce Presicent anc Drec:cr Eaton | insurance Healtn Cccrcinatng Petrec vice Cna.rman cf tne Scare Leng :stanc Lgnt.ng Comcany John D. Maxwell Ccunci Onairman anc o. rec:or voiuntary Nenprof t Winfleid E. Fromm <cumcr;en Carc. P'anning Agency Vrce P asiceat V'ce Presicent anc Drec:cr Eaton Cor::crat en Dewers Cnemco. Inc. | ||
Cor::crat en Dewers Cnemco. Inc. | |||
zectrcnics Manufactunng Charles R. Pierce Cna.rr an et ne Scarc aac Chef Esecut;ve Cff cer Long is:ano Lgntry Cor cany Of*icers Charles R. Pierce Joseph G. Acker Michael Czumak Cnairman ot tne Scarc V-ce P esicent | zectrcnics Manufactunng Charles R. Pierce Cna.rr an et ne Scarc aac Chef Esecut;ve Cff cer Long is:ano Lgntry Cor cany Of*icers Charles R. Pierce Joseph G. Acker Michael Czumak Cnairman ot tne Scarc V-ce P esicent | ||
. Ccrtrciler anc Cnief Executive Cf'icer Transmiss:en/ Ds:r.::ucer, arc S'fV'ce C;:eranens Edward W. Eacker Wilfred O. Uhl Treasurer Presicent Hugh P. Boylan Raymond J. Forrer Charles J. Davis yce,Pjs g ent Assec: ate Centroser senior vee P es.ce t John J. Keamey, Jr. | . Ccrtrciler anc Cnief Executive Cf'icer Transmiss:en/ Ds:r.::ucer, arc S'fV'ce C;:eranens Edward W. Eacker Wilfred O. Uhl Treasurer Presicent Hugh P. Boylan Raymond J. Forrer Charles J. Davis yce,Pjs g ent Assec: ate Centroser senior vee P es.ce t John J. Keamey, Jr. | ||
Line 1,530: | Line 993: | ||
Commere:al Cceracons Operations anc Constn.cten Gererai Atterrey Thomas H. O'Brien Matthew S. Procelli Francis M. Walsh sener Vice P es. cent vice Pres; cent Genera:Caims Attorney Finance Emcicyee Peiatens John J. Russell vice P esicent Castarrer Ae ancns Andrew W. Wofford vice P es; cent P oiec:Managen ent | Commere:al Cceracons Operations anc Constn.cten Gererai Atterrey Thomas H. O'Brien Matthew S. Procelli Francis M. Walsh sener Vice P es. cent vice Pres; cent Genera:Caims Attorney Finance Emcicyee Peiatens John J. Russell vice P esicent Castarrer Ae ancns Andrew W. Wofford vice P es; cent P oiec:Managen ent | ||
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! COVER OUR SERVICE AREA INVESTOR NOTl!S I | ! COVER OUR SERVICE AREA INVESTOR NOTl!S I | ||
l l | l l | ||
,. With the largest and most diverse ser. Annual Meeting vice terntory in New York State. Niagara The annual meeting of sto:kholders will | |||
,. With the largest and most diverse ser. Annual Meeting | |||
vice terntory in New York State. Niagara The annual meeting of sto:kholders will | |||
$btyw.,g Mohawk Power Corp.is recognized as be held on May 6,1980 at :he Com- | $btyw.,g Mohawk Power Corp.is recognized as be held on May 6,1980 at :he Com- | ||
((Mi 9 | |||
one of the nation's major investor-owned utilities. Electncity from our pany's principal office in,jyisB.ise. A formal notice of meeting, proxy state- | |||
#F | #F | ||
''#.61j massive system, extending from Lake ment and proxy form will be sent to | ''#.61j massive system, extending from Lake ment and proxy form will be sent to | ||
'''''E Erie to New England's borders,to holders of common stock in early April. | '''''E Erie to New England's borders,to holders of common stock in early April. | ||
% Canada and Pennsylvania, serves the Transfer Agents | |||
% Canada and Pennsylvania, serves the | |||
Transfer Agents | |||
,. energy needs of 1,348.000 customers. Preferred Stock and Preference Stock: | ,. energy needs of 1,348.000 customers. Preferred Stock and Preference Stock: | ||
Our natural gas system serves 416.000 Marine Midland Ba6k-New York custcmers in central, eastem and 2 Broadway New York, N.Y.10004 northem New York, nearly aH within our Common Stock; c'ectric senice area.Two Canadian subsidiaries. St. Lawrence Power Com- Morgan Guaranty Trust Company pany and Canadian Niagara Power of New York Company, Ltd.. provide electric service 30 W. Broadway. New York. N.Y.10015 to parts of southem Ontano. Our cor- Disbursing Agent A new energy decade beckons. pcrate headquarters is 300 Etie Preferred. Preference and Common Prime energy sources-fossil fuels. Boulevard West. Syracuse N.Y.13202. Stocks: | Our natural gas system serves 416.000 Marine Midland Ba6k-New York custcmers in central, eastem and 2 Broadway New York, N.Y.10004 northem New York, nearly aH within our Common Stock; c'ectric senice area.Two Canadian subsidiaries. St. Lawrence Power Com- Morgan Guaranty Trust Company pany and Canadian Niagara Power of New York Company, Ltd.. provide electric service 30 W. Broadway. New York. N.Y.10015 to parts of southem Ontano. Our cor- Disbursing Agent A new energy decade beckons. pcrate headquarters is 300 Etie Preferred. Preference and Common Prime energy sources-fossil fuels. Boulevard West. Syracuse N.Y.13202. Stocks: | ||
hydroelectric and nuclear--form the Niagara Mohawk Power Corporation | hydroelectric and nuclear--form the Niagara Mohawk Power Corporation long-established power generation mix 300 Erie Boulevard West ELECTRIC SERVICE AREA Niagara Mohawk will continue to deploy Syracuse. N.Y.13202 for the most efficient generation of e!ec-Stock Exchanges tricity. At the same time, our firm com. - | ||
long-established power generation mix 300 Erie Boulevard West ELECTRIC SERVICE AREA Niagara Mohawk will continue to deploy Syracuse. N.Y.13202 for the most efficient generation of e!ec-Stock Exchanges tricity. At the same time, our firm com. - | |||
mitment to developing alternate energy ,,,."""", Common and Certain Preferred Series: , | mitment to developing alternate energy ,,,."""", Common and Certain Preferred Series: , | ||
Listed on New York Stock Exchange i sources-the sun and wind included- ' | Listed on New York Stock Exchange i sources-the sun and wind included- ' | ||
Line 1,564: | Line 1,012: | ||
Common Stock: | Common Stock: | ||
~ | ~ | ||
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Also traded on Amsterdam (Nether- | Also traded on Amsterdam (Nether- | ||
. - . *:" lands). Boston, Cincinnati. Detroit, t'"" # ~M | . - . *:" lands). Boston, Cincinnati. Detroit, t'"" # ~M | ||
* v Midwest. Pacific Coast and PBW stock , | * v Midwest. Pacific Coast and PBW stock , | ||
,a.'"' | ,a.'"' | ||
* a-.''''" exchanges. | * a-.''''" exchanges. | ||
~~ | ~~ | ||
arw vem sme - i Ticker Symbol: NMK l Form 10-K Report A copy of the Company's Form 10-K report filed annually with the Securities and Exchange Commission is available after March 31,1980 by wiiting the Vice | arw vem sme - i Ticker Symbol: NMK l Form 10-K Report A copy of the Company's Form 10-K report filed annually with the Securities and Exchange Commission is available after March 31,1980 by wiiting the Vice | ||
! GAS SERVICE AREA President and Treasurer at 300 Erie | ! GAS SERVICE AREA President and Treasurer at 300 Erie Boulevard West. Syracuse N.Y.13202. | ||
Boulevard West. Syracuse N.Y.13202. | |||
i | i | ||
_ n. .ne.wan n . co., ,, na 2,., manc.~mn .e r. , | _ n. .ne.wan n . co., ,, na 2,., manc.~mn .e r. , | ||
wee wena ca. nn ee j ,,, %.aeus4 A-- . | wee wena ca. nn ee j ,,, %.aeus4 A-- . | ||
, N '_ * | , N '_ * | ||
: e. - - '-- | : e. - - '-- | ||
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Line 1,589: | Line 1,030: | ||
^'***'a.,,, new wom smx m' i | ^'***'a.,,, new wom smx m' i | ||
.t | .t | ||
EHUGHTS OF1979 CONTENTS 1979 1978 *. Change 2 President's Letter fotsi operating revenues s1,516,503,000 s1.280.248.000 18 4 Financial Review ncome available for common stockholders s 128,186,000 S 112.502.000 14 7 Nuc! ear Activities . . . | |||
EHUGHTS OF1979 CONTENTS | |||
1979 1978 *. Change 2 President's Letter fotsi operating revenues s1,516,503,000 s1.280.248.000 18 4 Financial Review ncome available for common stockholders s 128,186,000 S 112.502.000 14 7 Nuc! ear Activities . . . | |||
Iamings per common share s2,00 s1.89 6 8 Hydro Progress - - . | Iamings per common share s2,00 s1.89 6 8 Hydro Progress - - . | ||
Dividends per common share s1,44 5136ya 5 10 Fossil' Fuels | Dividends per common share s1,44 5136ya 5 10 Fossil' Fuels | ||
:ommon shares outstanding (arcerage) 63,976,000 59.661.000 7 11 Natural Cas Utility plant ;;ross) s4,218.528,000 $3.905.374.000 8 11 Consumer Programs Cross additions to utility plant s 374,530,000 s 316.280,000 18 13 Research t!cwatt-hour sales to customers 33,315,000,000 32.382.000.000 3 14 Employees. Stockholders Sectric customers at end of year 1,348,000 1.336.000 1 15 Financial Statements Dectne peak load (kilowat:s) 5,641,000 5.485.000 3 27 Statistics Natural gas sales to customers (dekatherms) 96,618,000 98.002.000 (1) 29 Officers, Directors Cas customers at end of year 416,000 413.000 1 | :ommon shares outstanding (arcerage) 63,976,000 59.661.000 7 11 Natural Cas Utility plant ;;ross) s4,218.528,000 $3.905.374.000 8 11 Consumer Programs Cross additions to utility plant s 374,530,000 s 316.280,000 18 13 Research t!cwatt-hour sales to customers 33,315,000,000 32.382.000.000 3 14 Employees. Stockholders Sectric customers at end of year 1,348,000 1.336.000 1 15 Financial Statements Dectne peak load (kilowat:s) 5,641,000 5.485.000 3 27 Statistics Natural gas sales to customers (dekatherms) 96,618,000 98.002.000 (1) 29 Officers, Directors Cas customers at end of year 416,000 413.000 1 | ||
%ximum day gas sendout(dekatherms) 750,666 655.4C8 15 l Civ:CENOS PER COMMUN SHARE EARNINGS PER CCMMON SHARE Dostars coaars | %ximum day gas sendout(dekatherms) 750,666 655.4C8 15 l Civ:CENOS PER COMMUN SHARE EARNINGS PER CCMMON SHARE Dostars coaars | ||
_ _ .s . | _ _ .s . | ||
1979 1.44 1979 2.00 g | 1979 1.44 1979 2.00 g s | ||
3 1979 1.36V: 1978 1.89 p j 1977 1.31% . 1977 1.74 i* | |||
1979 1.36V: 1978 1.89 p j | |||
1977 1.31% . 1977 1.74 i* | |||
I | I | ||
. . - . w -. | . . - . w -. | ||
1976 1.24 1976 1 61 1 | 1976 1.24 1976 1 61 1 l | ||
l | |||
1975 1.21 1975 2.03 ; | 1975 1.21 1975 2.03 ; | ||
-~% .J TOTAL OPERATING REVENUES uilhons of codars 6, | |||
-~% .J TOTAL OPERATING REVENUES uilhons of codars | |||
6, | |||
{. , ~ i4'. 4 | {. , ~ i4'. 4 | ||
._a. | ._a. | ||
1979 1.517 | 1979 1.517 | ||
. . . g_ . - .y -m ,-a . | . . . g_ . - .y -m ,-a . | ||
1978 1.290 . ., l | 1978 1.290 . ., l | ||
.. . T''Q.-l ~..'.*jj~ . - | .. . T''Q.-l ~..'.*jj~ . - | ||
1977 1.229 d | 1977 1.229 d | ||
.y. . . - r-utw . , , . | .y. . . - r-utw . , , . | ||
. . _ = ._. _ _3 1976 1,077 ..%.'- | . . _ = ._. _ _3 1976 1,077 ..%.'- | ||
- _, . r.' . . . -'l | - _, . r.' . . . -'l W- X_, ' | ||
W- X_, ' | |||
~~ | ~~ | ||
1975 972 - | 1975 972 - | ||
, f yyyy .----._..s ' _T | , f yyyy .----._..s ' _T | ||
* 1_4 l | * 1_4 l | ||
1 t | 1 t | ||
TO QUR STOCKHOLDERS We achieved a moderate improvement in our earnings in 1979, as they reached 52.00 per common share compared to $1.89 per share in the prior year. | TO QUR STOCKHOLDERS We achieved a moderate improvement in our earnings in 1979, as they reached 52.00 per common share compared to $1.89 per share in the prior year. | ||
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A portion of this 6% rise can be attributed to.a $16.2-million annual rate adjustment approved by the N.Y. State Public Service Commission and put into effect during the first quarter. Despite this modest increase, double-digitinflation again continued to overwhelm our strongest cost control efforts and we were compelled to pursue further. rate improvement. | A portion of this 6% rise can be attributed to.a $16.2-million annual rate adjustment approved by the N.Y. State Public Service Commission and put into effect during the first quarter. Despite this modest increase, double-digitinflation again continued to overwhelm our strongest cost control efforts and we were compelled to pursue further. rate improvement. | ||
Line 1,674: | Line 1,072: | ||
we are in the process of revising our entire construction schedule for completion of the plant in 1986. This two-year extensiori will accommodate l necessary modifications to the reactor's containment and radiation protection structures. further geological studies and new requirements l expected from the Nuclear Regulatory Commission arising from the Three l 2 | we are in the process of revising our entire construction schedule for completion of the plant in 1986. This two-year extensiori will accommodate l necessary modifications to the reactor's containment and radiation protection structures. further geological studies and new requirements l expected from the Nuclear Regulatory Commission arising from the Three l 2 | ||
t | t | ||
.J | .J | ||
[/ | [/ | ||
.y 1' . | .y 1' . | ||
Mile Island incident. As a result, manpower and engineering design work have been temporarily reduced pending resolution of probable | Mile Island incident. As a result, manpower and engineering design work have been temporarily reduced pending resolution of probable modifications. We do not expect any power supply difficulties related tote | ||
modifications. We do not expect any power supply difficulties related tote | |||
<f- ~ | <f- ~ | ||
1 . | 1 . | ||
delay, and we will stnve as ever to maintain adequate electric power - | delay, and we will stnve as ever to maintain adequate electric power - | ||
sources for customer needs at all times. | sources for customer needs at all times. | ||
! We were pleased with a decision by the State Board on Electnc | ! We were pleased with a decision by the State Board on Electnc | ||
~- Generation Siting and the Environment giving us a go-ahead to build an | ~- Generation Siting and the Environment giving us a go-ahead to build an | ||
[/ ;f % h, 850.000-kilowatt coal-fired unit on Lake Erie, south of Dunkirk.The ruling 1 | [/ ;f % h, 850.000-kilowatt coal-fired unit on Lake Erie, south of Dunkirk.The ruling 1 | ||
-., 4Y ._ followed many months of public hearings and exhaustive legal and | -., 4Y ._ followed many months of public hearings and exhaustive legal and g environmental proceedings.The Board indicated approval of a second 7 | ||
s N proposed unit would be contingent on proof of need, either by Niagara N' | |||
h - . | |||
s N proposed unit would be contingent on proof of need, either by Niagara | |||
Mohawk alone or in concert with other utilities. We feel confident that this principal power producer can be constructed and operated without harm | Mohawk alone or in concert with other utilities. We feel confident that this principal power producer can be constructed and operated without harm | ||
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: 'J s; k ,-:. ' - to air, land or water quality. We are especially sensitive and concemed over the vital grape-growing industy in the region. | : 'J s; k ,-:. ' - to air, land or water quality. We are especially sensitive and concemed over the vital grape-growing industy in the region. | ||
Line 1,713: | Line 1,095: | ||
.. . s | .. . s | ||
} f. . | } f. . | ||
Generation Siting disallowing construction of the proposed Sterling Nuclear Station came to us as a severe disappointment. Sterling's design | Generation Siting disallowing construction of the proposed Sterling Nuclear Station came to us as a severe disappointment. Sterling's design | ||
> was part of the Standardized Nuclear (.! nit Power Plant System Program Jonn G. Haehl,Jr' believe this project, of which Niagara Mohawk owned 22%, would have been totally compatible with the environment. Moreover, it would have provided significant economic benefits for upstate New York consumers besides reducing foreign-cil dependence and helping to assure stable energy supply in the decades ahead. Together with the co-owners, we have filed with the Public Service Commission to recover our investment in the Sterling project. | |||
> was part of the Standardized Nuclear (.! nit Power Plant System Program | |||
In a similar vein, references appear throughout this report to other | In a similar vein, references appear throughout this report to other | ||
! difficulties and costly delays stemming from regulatory influences over | ! difficulties and costly delays stemming from regulatory influences over | ||
Line 1,730: | Line 1,106: | ||
m n 3 -aen ur. | m n 3 -aen ur. | ||
February 1,1980 Presicent and Chef becat,ve CMer j 3 i | February 1,1980 Presicent and Chef becat,ve CMer j 3 i | ||
FINANCIAL IlEVIEW Niagara Mohawk's camings in 1979 A new electric peak load of (7.0%) gas,all within Federal price were $2.00 per share, up 11C over 1978 5,641,000 kilowatts was recorded on guidelines. | FINANCIAL IlEVIEW Niagara Mohawk's camings in 1979 A new electric peak load of (7.0%) gas,all within Federal price were $2.00 per share, up 11C over 1978 5,641,000 kilowatts was recorded on guidelines. | ||
when fewer shares were outstanding. February 14,1979, some 156,000 kw In early Decembar, the Ad,ministrative The following factors, which may not be over the 1978 peak. Law Judge in the case rec.cmmended indicative of future operations or eam- that electric rates be allowed to increase ings. have had a significant effect upon A $46 million increase in natural $91.3 million annually and gas rates be the results of operations during 1978 gas revenues was noted in 1979, allowed to rise $800.000 per year and 1979- compared with a rise of $22 million in supplemented by accounting proce-Total revenues were $ 1.517 billion in 1978.The change resulted primarily dures designed to partiaDy offset the 1979, an increase of $236 million or from price increases authorized by the immediate need fer higher revenues. | when fewer shares were outstanding. February 14,1979, some 156,000 kw In early Decembar, the Ad,ministrative The following factors, which may not be over the 1978 peak. Law Judge in the case rec.cmmended indicative of future operations or eam- that electric rates be allowed to increase ings. have had a significant effect upon A $46 million increase in natural $91.3 million annually and gas rates be the results of operations during 1978 gas revenues was noted in 1979, allowed to rise $800.000 per year and 1979- compared with a rise of $22 million in supplemented by accounting proce-Total revenues were $ 1.517 billion in 1978.The change resulted primarily dures designed to partiaDy offset the 1979, an increase of $236 million or from price increases authorized by the immediate need fer higher revenues. | ||
18.5% for the year. Operating revenues Federal Energy Regulatory Commis. The interim recommendation was far | 18.5% for the year. Operating revenues Federal Energy Regulatory Commis. The interim recommendation was far increased significantly in 1979, primar- sion to Consolidated Gas Supply Corp., short of our request and we took strong ily the result of:(!) recovery ofin- our only supplier of gas, and recovered exception to itin our response to the creased energy and purchased gas from customers through the gas ad- Commission. Because of the nearly costs through the electric and gas ad- justment clause. year-long regulatory proceedings for justment clauses of the Company's Total gas sales for the year fell 1.4% any rate case, any increase, as finally tanffs,(2) base rate incre ses and (3) in 1979, against a climb of 5.0% in determined by the PSC,is not expected increased e!ectric sales. Gas sales de- 1978. Residential customers led the to go into effect until March 1980. | ||
increased significantly in 1979, primar- sion to Consolidated Gas Supply Corp., short of our request and we took strong ily the result of:(!) recovery ofin- our only supplier of gas, and recovered exception to itin our response to the creased energy and purchased gas from customers through the gas ad- Commission. Because of the nearly costs through the electric and gas ad- justment clause. year-long regulatory proceedings for justment clauses of the Company's Total gas sales for the year fell 1.4% any rate case, any increase, as finally tanffs,(2) base rate incre ses and (3) in 1979, against a climb of 5.0% in determined by the PSC,is not expected increased e!ectric sales. Gas sales de- 1978. Residential customers led the to go into effect until March 1980. | |||
creased due to warmer than normal decline with a decrease of 53% and weather during the last few months of commercial sales decreased IJ%. In 1978, the Company petitioned 1979.The tables on page 5 show while industrial sales increased 9.5%. the Commission for a reopening of an changes in electric and gas revenues The lower gas usage was due to earlier electric rate case on the basis of and sales. warmer than normal weather partially changes in demand for electricity which offset by conversions to gas for heating had caused Niagara Mohawk's forecast The Company's electric revenues because of its price advantage over of sales and revenues for the first rate increased $191 millionin 1979,to other fuel sources. Gas customers year ending June 30,1979 to be over- | creased due to warmer than normal decline with a decrease of 53% and weather during the last few months of commercial sales decreased IJ%. In 1978, the Company petitioned 1979.The tables on page 5 show while industrial sales increased 9.5%. the Commission for a reopening of an changes in electric and gas revenues The lower gas usage was due to earlier electric rate case on the basis of and sales. warmer than normal weather partially changes in demand for electricity which offset by conversions to gas for heating had caused Niagara Mohawk's forecast The Company's electric revenues because of its price advantage over of sales and revenues for the first rate increased $191 millionin 1979,to other fuel sources. Gas customers year ending June 30,1979 to be over- | ||
$ 1.211 billion, compared with a rise of numbered 416,000 at the end of 1979, stated.The PSC granted the petition | $ 1.211 billion, compared with a rise of numbered 416,000 at the end of 1979, stated.The PSC granted the petition | ||
Line 1,751: | Line 1,121: | ||
' rih"TiHEEEEEZKg 1975 32.382 - C.) 1978 98.002 1979 12.s8 37.11 4mi 5 .QhL ~~ v. &.. : : | ' rih"TiHEEEEEZKg 1975 32.382 - C.) 1978 98.002 1979 12.s8 37.11 4mi 5 .QhL ~~ v. &.. : : | ||
1977 1977 93.370 1977 12.94 34.00 31.367 ? -fz - ~~ | 1977 1977 93.370 1977 12.94 34.00 31.367 ? -fz - ~~ | ||
: o,....e # - ' | : o,....e # - ' | ||
1976 31.802 %: 1976 102.918 1976 11.04 32.34 1975 30.319 4 L 1975 92.919 1975 10.70 33.26 l ~ . . . . - -h Barret of oil 70n of Coal r | |||
1976 31.802 %: 1976 | |||
102.918 | |||
1976 11.04 | |||
32.34 1975 30.319 4 L 1975 92.919 1975 10.70 33.26 | |||
l ~ . . . . - -h Barret of oil 70n of Coal r | |||
1 | 1 | ||
ELECTRIC increase (cecreaseerem oner :er'cc GAS :ncrease icecrease)' cm ener cened in mdl,ct's cf :Colars en Trilsons et Oct!ars 3eveNes 1979 1973 3evenues !979 1973 incrcase in case rates . $ 24.5 314.9 increase in ease rates . s 4.6 s 2.2-- | ELECTRIC increase (cecreaseerem oner :er'cc GAS :ncrease icecrease)' cm ener cened in mdl,ct's cf :Colars en Trilsons et Oct!ars 3eveNes 1979 1973 3evenues !979 1973 incrcase in case rates . $ 24.5 314.9 increase in ease rates . s 4.6 s 2.2-- | ||
Fuct and purenased power cost Purchased g as cost increases 42.3 '9 T increases 108.8 (2.6) Gas sales . ~( 1.4) 9.9 Sms to ultimate consumera . 20.7 16.7 s45.5 $21.9 Sats to otner electric systems . 23.7 0.8 Miscellaneous operating revenues 13.1 2.8 | Fuct and purenased power cost Purchased g as cost increases 42.3 '9 T increases 108.8 (2.6) Gas sales . ~( 1.4) 9.9 Sms to ultimate consumera . 20.7 16.7 s45.5 $21.9 Sats to otner electric systems . 23.7 0.8 Miscellaneous operating revenues 13.1 2.8 | ||
Line 1,782: | Line 1,139: | ||
$38 million in 1979. compared with a ara Mohawk and scid to customers. crease is the result of an increase in | $38 million in 1979. compared with a ara Mohawk and scid to customers. crease is the result of an increase in | ||
$ 16 million ncrease in 1978.The in- Increases in other operating ex- deferred federalincome taxes which cresses reflect the effects of the Natural penses of $19 millionin 1979 and $16 was partially offset by a decrease in cur-Ccs Policy Act, enacted by the Con- million in 1978 are largely due to wage rent federalincome tax expense.The gress in 1978, and renegotiation of a increases and a rise in pnces paid for 1978 increase was attnbutable to high-10-year contract between E! paso materials and supplies. Maintenance er taxable camings. (See Note 10 to the Corp.. Consolidated's liquefied natural expenses for 1979 were $19 million Consolidated Financial Statements.) | $ 16 million ncrease in 1978.The in- Increases in other operating ex- deferred federalincome taxes which cresses reflect the effects of the Natural penses of $19 millionin 1979 and $16 was partially offset by a decrease in cur-Ccs Policy Act, enacted by the Con- million in 1978 are largely due to wage rent federalincome tax expense.The gress in 1978, and renegotiation of a increases and a rise in pnces paid for 1978 increase was attnbutable to high-10-year contract between E! paso materials and supplies. Maintenance er taxable camings. (See Note 10 to the Corp.. Consolidated's liquefied natural expenses for 1979 were $19 million Consolidated Financial Statements.) | ||
AVEAAGE GACSS ELECTAIC UTILITY lNCCME iBEFORE ;NTEREST AND INCCME TOTAL TAXES. | AVEAAGE GACSS ELECTAIC UTILITY lNCCME iBEFORE ;NTEREST AND INCCME TOTAL TAXES. | ||
PLANT PER ELECTRIC CUSTCMER TAXES) AND INTEREST CHARGES NCLUDING INCOME TAXES OCdart %I1106S Cf scalar $ %IhC6S Cf Ocelars , | PLANT PER ELECTRIC CUSTCMER TAXES) AND INTEREST CHARGES NCLUDING INCOME TAXES OCdart %I1106S Cf scalar $ %IhC6S Cf Ocelars , | ||
7'' E T Cj ;%Kf CQf. gWLah MM DiQ - | 7'' E T Cj ;%Kf CQf. gWLah MM DiQ - | ||
'.979 2.!c2 7 1979 110 | '.979 2.!c2 7 1979 110 297 1979 189'afi 19r$ 2.6c8 PJ 1978 101 2s2 1979 173 . - Y | ||
297 1979 189'afi 19r$ 2.6c8 PJ 1978 101 2s2 1979 173 . - Y | |||
" '"1N; 4 M[. | " '"1N; 4 M[. | ||
t977 2.444 hI 197' 34 23s 1977 167.h.h?h | t977 2.444 hI 197' 34 23s 1977 167.h.h?h | ||
. Y M b&? | . Y M b&? | ||
1973 x c r A & [h | 1973 x c r A & [h | ||
,.~.. w m q qt 2.253 d 1976 38 | ,.~.. w m q qt 2.253 d 1976 38 207 1976 megyg a 143 | ||
207 1976 megyg a 143 | |||
'9?5 130'.ygl. d 2.084 | '9?5 130'.ygl. d 2.084 | ||
*f ,1 1975 91 220 ?97s i mm= nw.w 2 | *f ,1 1975 91 220 ?97s i mm= nw.w 2 | ||
~ | ~ | ||
nd R l Interest caarges income l | nd R l Interest caarges income l 1 | ||
l | |||
/ . | / . | ||
1 l | 1 l | ||
Change THE 1979 REVENUE DOLLAR AND WHERE IT WENT Change l Inenousands from in thousands from i of collars 1978 of coliars 1978 l | Change THE 1979 REVENUE DOLLAR AND WHERE IT WENT Change l Inenousands from in thousands from i of collars 1978 of coliars 1978 l | ||
$534.385 12*. 35c Residential customers E ! : u b.E | $534.385 12*. 35c Residential customers E ! : u b.E | ||
% *!If M Wages, salaries, employee , | % *!If M Wages, salaries, employee , | ||
J benefits 13c 198.469 12 l 464,312 18 31c Commercial customers Gas purchased .13e 196.711 24 12c 188.758 9 | J benefits 13c 198.469 12 l 464,312 18 31c Commercial customers Gas purchased .13e 196.711 24 12c 188.758 9 | ||
% income and other taxes 923 gM Electricity purchased 11c 159.453 60 359.093 23 24c Industrial customers [: q ;i] Interest and other costs-net 10c 152.769 9 | % income and other taxes 923 gM Electricity purchased 11c 159.453 60 359.093 23 24c Industrial customers [: q ;i] Interest and other costs-net 10c 152.769 9 | ||
=I ~ ;.R Dividends to stockholders 8e 119.980 9 158.713 37 10c All others M'QiPJ Depreciation | =I ~ ;.R Dividends to stockholders 8e 119.980 9 158.713 37 10c All others M'QiPJ Depreciation 6c 84.212 4 Retained in business 2c 36.050 20 Allowance for funds used during 1979 financing included the public Productivity gains and new effi-construction increased S 13 million in sale of 3.5 million shares of Niagara ciency measures were again noted at 1979 and S 11 million in 1978 due to Mohawk common stock at the approx. Niagua Mohawk dunng the year. Espe-higher amounts of construction work in imate market price of 813% per share, cially significant was the revamping of progress and additionallyin 1979, due 2.3 miHion common shares sold ourInformation Systems Department to higher accrual rates being charged. through our Dividend Reinvestment into the new Management Systems and The increase in other interest of $3 mil- and Stock Purchase Plan and Employ- Services Department. lts expanded ac-Den in 1979 reflects both the need for ee Savings Fund Plan and a total of tivities are expected to yield gross an-greater short-term borrowing to tem- $100 million of 25-year mortgage nualsavings of about$5 million begin-poranly i nance the construction pro- bonds issued through private place- ning in 1986 due to startup of several gram and a drastic rise in it;terest rates ment at the comparatively favorable new computer systems. Project teams during the year. rate of 9.95%. Proceeds from these have been organized to begin work on sales provided construction funds, the first of these, including customer, Preferred and common stock div- In the fourth quarter, interest rates corporate and construction and idends were paid on March 31. June rose sharply to record high tevels for maintenance systems. | ||
: 30. September 30 and December 31. both short and long-term financings. In we presently estimate that 65% of the 1980,we must refund $80 million of The costimpact of regulation upon 1979 common stock dividends is a re- bonds coming due which were issued virtually all aspects of our business, tum of capital and therefore is not taxa- 30 years earlier at interest rates under especially environmental affairs,is ble as dividend income forincome tax 3%. The average interest rate for all debt growing more pronounced everyyear. | : 30. September 30 and December 31. both short and long-term financings. In we presently estimate that 65% of the 1980,we must refund $80 million of The costimpact of regulation upon 1979 common stock dividends is a re- bonds coming due which were issued virtually all aspects of our business, tum of capital and therefore is not taxa- 30 years earlier at interest rates under especially environmental affairs,is ble as dividend income forincome tax 3%. The average interest rate for all debt growing more pronounced everyyear. | ||
purposes.The remaining percentage outstanding at the end of December proceedings, for instance. in the New on common dividends and 100% of was about 7.4%. High priority in rate in- York State " Article VIII" siting law for preferred stock dividends are taxable as crease filings is given to seeking an proposed power generating facilities dividend income. adequate camings level on stockhold- cost the Company $2.7 million in 1979. | purposes.The remaining percentage outstanding at the end of December proceedings, for instance. in the New on common dividends and 100% of was about 7.4%. High priority in rate in- York State " Article VIII" siting law for preferred stock dividends are taxable as crease filings is given to seeking an proposed power generating facilities dividend income. adequate camings level on stockhold- cost the Company $2.7 million in 1979. | ||
Line 1,824: | Line 1,171: | ||
6 | 6 | ||
NUCl. EAR ACTIVITIES The accident at the Three Mile Island have begunjointly by Niagara Mohawk TOTAL GENE AATING COSTS: | NUCl. EAR ACTIVITIES The accident at the Three Mile Island have begunjointly by Niagara Mohawk TOTAL GENE AATING COSTS: | ||
FOSSIL FUEL VS NUCLEA A nuclear plant in Pennsylvania in March and other utilities to !eam the feasibility 1979 fostered a number of measures of establishing an insurance pool to _ . - c.n , ,,y,q by Niagara Mohawk and others in the cover costs of replacement powerin - -- ! | FOSSIL FUEL VS NUCLEA A nuclear plant in Pennsylvania in March and other utilities to !eam the feasibility 1979 fostered a number of measures of establishing an insurance pool to _ . - c.n , ,,y,q by Niagara Mohawk and others in the cover costs of replacement powerin - -- ! | ||
industry to further safety refinements case of an emergency at a nuclear - | industry to further safety refinements case of an emergency at a nuclear - | ||
l and promote nationwide public under- | l and promote nationwide public under-power plant. | ||
power plant. | |||
standing of nuc! ear energy. Nsu w 3.4s3 i | standing of nuc! ear energy. Nsu w 3.4s3 i | ||
December 1979 marked the tenth - - _ _ . | December 1979 marked the tenth - - _ _ . | ||
l Foremost among these was the anniversary of operation forNiag- - .- - - - | l Foremost among these was the anniversary of operation forNiag- - .- - - - | ||
creation by the industry of two new ara Mohawk's Nine Mile Point Nuc! ear organizations,theinstitute of Nuclear Station Unit No.1. Recognized Nuciear 2.619 Power Operations to achieve improved throughout the industry for its safety - | creation by the industry of two new ara Mohawk's Nine Mile Point Nuc! ear organizations,theinstitute of Nuclear Station Unit No.1. Recognized Nuciear 2.619 Power Operations to achieve improved throughout the industry for its safety - | ||
operator training and to audit and and fine performance record, the ' | operator training and to audit and and fine performance record, the ' | ||
evaluate safety programs, and the Nu- 610,000-kilowatt unit has produced j clear Safety Analyses Center to serve as some 32.4 billion kilowatt-hours over inciuo w. nw.ar a.comm. oning costs a c! earing house for Three Mile Island the past decade. Generating the same RfC/,7,,*"gf,'''57"ij'y I study resu!ts. power from fossil fuels over that period Sased at Electric Power Research would have taken 54 million barrels of insttute headquarters in Palo Alto, oil or 14 million tons of coal.The sta-Califemia, the Center will disseminate tion was cited in 1979 by General Elec- unit's 1,100-ton reactor pressure vessel the results of safety reviews and tric Company for attaining the highest arrived at the plant site following ship-analyses to reactor owners and other combined availability and capacity fac- ment by barge over the Great Lakes groups. In addition, preliminary studies tors of any boiling water reactor in the some 2,000 miles from Memphis. Ten-U.S. in 1978. The unit was available for nessee. In December and again in early | evaluate safety programs, and the Nu- 610,000-kilowatt unit has produced j clear Safety Analyses Center to serve as some 32.4 billion kilowatt-hours over inciuo w. nw.ar a.comm. oning costs a c! earing house for Three Mile Island the past decade. Generating the same RfC/,7,,*"gf,'''57"ij'y I study resu!ts. power from fossil fuels over that period Sased at Electric Power Research would have taken 54 million barrels of insttute headquarters in Palo Alto, oil or 14 million tons of coal.The sta-Califemia, the Center will disseminate tion was cited in 1979 by General Elec- unit's 1,100-ton reactor pressure vessel the results of safety reviews and tric Company for attaining the highest arrived at the plant site following ship-analyses to reactor owners and other combined availability and capacity fac- ment by barge over the Great Lakes groups. In addition, preliminary studies tors of any boiling water reactor in the some 2,000 miles from Memphis. Ten-U.S. in 1978. The unit was available for nessee. In December and again in early | ||
Line 1,845: | Line 1,186: | ||
barge trip up Mississippi River and project completon at our 1.08 million- certainties at both federal and state across Great Lakes. Large building in kilowatt nuclear unit No. 2 at Nine Mile levels. Shares owned in the unit include background at left is our 610,000- Point on Lake Ontario. In late 1979, the Niagara Mohawk 41%, Long Island kilowatt nuclear Unit No.1. | barge trip up Mississippi River and project completon at our 1.08 million- certainties at both federal and state across Great Lakes. Large building in kilowatt nuclear unit No. 2 at Nine Mile levels. Shares owned in the unit include background at left is our 610,000- Point on Lake Ontario. In late 1979, the Niagara Mohawk 41%, Long Island kilowatt nuclear Unit No.1. | ||
O o | O o | ||
i 3 ' | i 3 ' | ||
[r '! . = . | [r '! . = . | ||
'/ TAW--??P ~i N', y-7 y y'::7h '. . | '/ TAW--??P ~i N', y-7 y y'::7h '. . | ||
y ,_ .~. | y ,_ .~. | ||
~ , | ~ , | ||
Line 1,857: | Line 1,194: | ||
.<W | .<W | ||
"" " ~ | "" " ~ | ||
, 4 t ,,, - | |||
, 4 | |||
t ,,, - | |||
'd %~ ' | 'd %~ ' | ||
* I 7 | * I 7 | ||
3 j . | 3 j . | ||
! HYDRO PROGRESS Despite anotheryear of unanticipated regulatory hurdles in hydroelectne proj- | |||
! HYDRO PROGRESS | |||
Despite anotheryear of unanticipated regulatory hurdles in hydroelectne proj- | |||
~- ~ ' | ~- ~ ' | ||
= | = | ||
Line 1,881: | Line 1,206: | ||
: some 205,000 kilowatts of water- | : some 205,000 kilowatts of water- | ||
; _ powered energy to our system. | ; _ powered energy to our system. | ||
L - | L - | ||
I I- | I I- | ||
' Most of this effort entails devel-l opment of the upper Hudson River j basin (146,000 kilowatts), while the | ' Most of this effort entails devel-l opment of the upper Hudson River j basin (146,000 kilowatts), while the | ||
,, ,, remainderincludes northem and cen-l J i' tral New York waterways.The largest | ,, ,, remainderincludes northem and cen-l J i' tral New York waterways.The largest | ||
' ' project consists of a new dam and | ' ' project consists of a new dam and | ||
! powerhouse to generate 60,000 l \ kilowatts at Hudson Falls, and we plan 1 | ! powerhouse to generate 60,000 l \ kilowatts at Hudson Falls, and we plan 1 | ||
Line 1,896: | Line 1,215: | ||
to file an application for this develop- | to file an application for this develop- | ||
, ment with the Federal Energy Reguia- | , ment with the Federal Energy Reguia- | ||
'g tory Cornmission in early 1980. Its on- | 'g tory Cornmission in early 1980. Its on-line target date is the mid-1980s. | ||
line target date is the mid-1980s. | |||
I | I | ||
! Because of regulatory delays over l k.v % water quality certification, plans to | ! Because of regulatory delays over l k.v % water quality certification, plans to | ||
Line 1,906: | Line 1,223: | ||
. 4 g};; y e, back by at least a year in 1979. The first | . 4 g};; y e, back by at least a year in 1979. The first | ||
' W' Q . - | ' W' Q . - | ||
S.,.- % Z projectin our hydro expansion plan, | S.,.- % Z projectin our hydro expansion plan, | ||
.<. 7.. Granby will have its 3,000-kilowatt unit | .<. 7.. Granby will have its 3,000-kilowatt unit | ||
, f ',f,- " ' | , f ',f,- " ' | ||
': .y"3 Q.Q;h r | ': .y"3 Q.Q;h r | ||
Line 1,916: | Line 1,231: | ||
. m | . m | ||
[$%f | [$%f | ||
-W rods being removed from uncapped reactor, upper left, for transfer to storage cool. : g? '<qr J ' | -W rods being removed from uncapped reactor, upper left, for transfer to storage cool. : g? '<qr J ' | ||
7- ,A | 7- ,A | ||
,y. y%;; Q in service since 1969, unit has been cited for outstanding performance. | |||
,y. y%;; Q | |||
in service since 1969, unit has been cited for outstanding performance. | |||
3 % p y_ | 3 % p y_ | ||
g g - | g g - | ||
...' w.1 s Ughting Co.18%, New York State Elec- southem Texas. United States Steel 7. f.QJg";y-Q%>,. . V.ly) ../ | ...' w.1 s Ughting Co.18%, New York State Elec- southem Texas. United States Steel 7. f.QJg";y-Q%>,. . V.ly) ../ | ||
t tric & Gas Corp.18%, Rochester Gas Corp. owns the other half and manages M. . | t tric & Gas Corp.18%, Rochester Gas Corp. owns the other half and manages M. . | ||
Line 1,943: | Line 1,250: | ||
nally issued certificate of environmental compatibility and public need for a 1.15 price, whichever is lower. The Arst full # M.'y O.M7 '%, | nally issued certificate of environmental compatibility and public need for a 1.15 price, whichever is lower. The Arst full # M.'y O.M7 '%, | ||
year of operation cf the expanded Y.' i - ' DF. 4 4 million-kilowatt nuc! ear unit planned facilities was 1979, with produc ion ex- M ' V jointly at Sterling near Lake Ontario. | year of operation cf the expanded Y.' i - ' DF. 4 4 million-kilowatt nuc! ear unit planned facilities was 1979, with produc ion ex- M ' V jointly at Sterling near Lake Ontario. | ||
We are studying the Board's decision ceeding 900,000 pounds. The P"C rul-ing and the revision cf the startup date $f.ph[j.m " + k '.?D@? a- | We are studying the Board's decision ceeding 900,000 pounds. The P"C rul-ing and the revision cf the startup date $f.ph[j.m " + k '.?D@? a- | ||
, e | , e | ||
..a reviewing our plans before making of Nine Mile Point Nuc! ear Station Unit Q. | ..a reviewing our plans before making of Nine Mile Point Nuc! ear Station Unit Q. | ||
Line 1,954: | Line 1,258: | ||
generation. Niagara Mohawk was to re-cerve 22% of the plant's output, with of NMU-produced uranium during 1979. Proceeds from sales at the mine | generation. Niagara Mohawk was to re-cerve 22% of the plant's output, with of NMU-produced uranium during 1979. Proceeds from sales at the mine | ||
[M' % | [M' % | ||
'5. | '5. | ||
"" .. f i.,7.;f; - | "" .. f i.,7.;f; - | ||
dM ! | dM ! | ||
Rochester Gas & Electnc, lead utiHty in were applied to cover operating ex- i y '.8 4 the project, receiving 28%. Central Hud- penses and to reduce the investment in J, %, . 5 .f ~r - | Rochester Gas & Electnc, lead utiHty in were applied to cover operating ex- i y '.8 4 the project, receiving 28%. Central Hud- penses and to reduce the investment in J, %, . 5 .f ~r - | ||
son's share was 17% and Orange and NMU.thereby reducing associated 4*# f2d | son's share was 17% and Orange and NMU.thereby reducing associated 4*# f2d Rockland Utilities. Inc. 33%. financing costs.s To assure future supply of fuel for our - | ||
nuc! ear operations at Nine Mile Point, r N M Uranium,!nc., a Niagara Mehawk v subsidiary, owns half a uranium minein I; 1 | |||
Rockland Utilities. Inc. 33%. financing costs.s | |||
To assure future supply of fuel for our - | |||
nuc! ear operations at Nine Mile Point, r | |||
N M Uranium,!nc., a Niagara Mehawk v subsidiary, owns half a uranium minein I; | |||
1 | |||
'r 8 | 'r 8 | ||
>-..,,e-----w.,.--.-,-,,,,.e,.,,,,,,,, | >-..,,e-----w.,.--.-,-,,,,.e,.,,,,,,,, | ||
I I | I I | ||
I I | I I | ||
Line 1,985: | Line 1,273: | ||
startup is 1983. r*W. ' - - | startup is 1983. r*W. ' - - | ||
I Besides hydro areas pinpointed in *I -' ' | I Besides hydro areas pinpointed in *I -' ' | ||
our expansion program, constantly ris- :* a 4 | our expansion program, constantly ris- :* a 4 ing coal, oil and nuc! ear fuel pnces are 9._ | ||
ing coal, oil and nuc! ear fuel pnces are 9._ | |||
"~~'' | "~~'' | ||
l making previously marginal hydro prospects look more and more ,, . . | l making previously marginal hydro prospects look more and more ,, . . | ||
#~ | #~ | ||
economically feasible. Weighing these factors, we are continually re-examining .- | economically feasible. Weighing these factors, we are continually re-examining .- | ||
i | i nvers and streams in our service terri-tory for future kilowatt potential. | ||
nvers and streams in our service terri-tory for future kilowatt potential. | |||
Niagara Mohawk is involved in | Niagara Mohawk is involved in | ||
; joint, cooperative hydro plans with . ' | ; joint, cooperative hydro plans with . ' | ||
Line 2,005: | Line 1,288: | ||
; study in 1979 and are currently evaluat- , | ; study in 1979 and are currently evaluat- , | ||
d*, . | d*, . | ||
j ing a proposalto build an 8,000 to | j ing a proposalto build an 8,000 to | ||
,'N 11,000-kilowatt station on the Mohawk . : %*,.[h. g # _ | ,'N 11,000-kilowatt station on the Mohawk . : %*,.[h. g # _ | ||
wN'g% | wN'g% | ||
.- ff - | .- ff - | ||
l River. Also,with the State Energy Re- | l River. Also,with the State Energy Re- | ||
* 7.*f l ,-~ V -- | * 7.*f l ,-~ V -- | ||
! search and Development Authority, we ;q are examining a proposal to reactivate a ., | ! search and Development Authority, we ;q are examining a proposal to reactivate a ., | ||
retired hydro project on the Barge ';; | |||
'~ ' | '~ ' | ||
i Canalin Western New York. :e Recent experience has shown that, J0 | i Canalin Western New York. :e Recent experience has shown that, J0 | ||
-- 7'".1 | -- 7'".1 not unlike conditions for future fossil "- > | ||
not unlike conditions for future fossil "- > | |||
X_.. 's 1 | X_.. 's 1 | ||
,w _. 's - | ,w _. 's - | ||
Line 2,035: | Line 1,308: | ||
- .4 fuel generation plans, considerable ELECTRICITY GENERATED AND I delay in scheduling hydro power PURCHASED BY TYPE OF FLEL | - .4 fuel generation plans, considerable ELECTRICITY GENERATED AND I delay in scheduling hydro power PURCHASED BY TYPE OF FLEL | ||
,y | ,y | ||
.Q-/4 ./'' units can anse over a variety of en-C vironmental concems. Historically, j ,. | |||
.Q-/4 ./'' units can anse over a variety of en- | |||
C vironmental concems. Historically, j ,. | |||
h', 4- | h', 4- | ||
' f ' *: f;* 'gg M;. . however, Niagara Mohawk has eamed 3 | ' f ' *: f;* 'gg M;. . however, Niagara Mohawk has eamed 3 | ||
?$4* | ?$4* | ||
: .p j much favorable recognition forits , . . , | : .p j much favorable recognition forits , . . , | ||
'q \ ~-0,* .. ',1 a j stewardship of many thousands of .. Coas I | 'q \ ~-0,* .. ',1 a j stewardship of many thousands of .. Coas I | ||
- ' 2, 7 - J ,}pB-W /w acres of prime forest!and at hydro in. 2n D " &, ct- . .A".) | - ' 2, 7 - J ,}pB-W /w acres of prime forest!and at hydro in. 2n D " &, ct- . .A".) | ||
stailations. As long ago as the early Nuclear | stailations. As long ago as the early Nuclear | ||
, -." --gl,[o2 p . - Id -Y v .4 .g 1900s, from reforestation and tree farming on the Black and Salmon Riv-y,no,, ,,,,,,, | , -." --gl,[o2 p . - Id -Y v .4 .g 1900s, from reforestation and tree farming on the Black and Salmon Riv-y,no,, ,,,,,,, | ||
m U '- | m U '- | ||
l ,-j.;N #;f s. | l ,-j.;N #;f s. | ||
1 ers to creation of public campsites and , | 1 ers to creation of public campsites and , | ||
i ?- , / recreation areas at our Raquette and | i ?- , / recreation areas at our Raquette and I | ||
A | |||
'A $bM # -- I [ t'~ b .h/' | 'A $bM # -- I [ t'~ b .h/' | ||
% Sacandaga projects, we have always placed high priority on land and water i - 9 '. {g | % Sacandaga projects, we have always placed high priority on land and water i - 9 '. {g | ||
/ quality and will continue to do so.s - | / quality and will continue to do so.s - | ||
N wpn'[ffv*2 7 . | N wpn'[ffv*2 7 . | ||
. . .h | . . .h | ||
,' , p.. , | ,' , p.. , | ||
f | f t | ||
t | |||
e :*8., | e :*8., | ||
y - | y - | ||
9 I | 9 I | ||
i w--"- -w-w w--,w-----wvm,v.--+,. _ . . _ _,.p., , , _ , , _ , _ _ _ _ _ | i w--"- -w-w w--,w-----wvm,v.--+,. _ . . _ _,.p., , , _ , , _ , _ _ _ _ _ | ||
FOSSIL FUELS IN OUR ENERGY MIX | FOSSIL FUELS IN OUR ENERGY MIX | ||
-~" - ~ ~ ~ | -~" - ~ ~ ~ | ||
Line 2,097: | Line 1,343: | ||
) . | ) . | ||
l 1973. produced its first electncity in g q y ,_ , | l 1973. produced its first electncity in g q y ,_ , | ||
, ,_.gr e~ | , ,_.gr e~ | ||
l December 1979. .; . & A. r - s-' C -* i ~' | l December 1979. .; . & A. r - s-' C -* i ~' | ||
;4-w %se: | ;4-w %se: | ||
y .g@D | y .g@D | ||
~y -.<_ | ~y -.<_ | ||
:e 7- 1 | :e 7- 1 | ||
Line 2,111: | Line 1,354: | ||
y .i.- | y .i.- | ||
i The unit is the latest addition to p, _ . $p i % -- .- 6 --m- 'r '-m 'd' l our generation mix and its ownership . ;.~JT'f(3 .p, 7- ,7 ":,.g c | i The unit is the latest addition to p, _ . $p i % -- .- 6 --m- 'r '-m 'd' l our generation mix and its ownership . ;.~JT'f(3 .p, 7- ,7 ":,.g c | ||
%g | %g and output are shared. with Niagara ?' ., ... | ||
and output are shared. with Niagara ?' ., ... | |||
~* | ~* | ||
t /', i * ' | t /', i * ' | ||
Mohawk holding 646.000 kilowatts " ' | Mohawk holding 646.000 kilowatts " ' | ||
# j' 1. | # j' 1. | ||
Line 2,128: | Line 1,364: | ||
* k 4, y | * k 4, y | ||
*%Q | *%Q | ||
' * "" d~-. | ' * "" d~-. | ||
V 'A , v l | V 'A , v l | ||
capability. Ccnstruccon costs. exclud- | capability. Ccnstruccon costs. exclud- | ||
.~j*w L - # | .~j*w L - # | ||
e .d ^' ..{ ' , | e .d ^' ..{ ' , | ||
l ' 7-t.I 's I. H g.f." g 3 *w 7 l ng inanc:ng costs, amount to only 5300 per 'nstalled kalowatt. substancaily E '' 1.: y | l ' 7-t.I 's I. H g.f." g 3 *w 7 l ng inanc:ng costs, amount to only 5300 per 'nstalled kalowatt. substancaily E '' 1.: y M-Mi 4M L | ||
M-Mi 4M L | |||
^ | ^ | ||
,+1 | ,+1 | ||
'' . 4[.?.V' sgn-iess than for any steam-electac plant .' , ~ | '' . 4[.?.V' sgn-iess than for any steam-electac plant .' , ~ | ||
.; . . . g planned in New York State over the next | .; . . . g planned in New York State over the next | ||
,s . | ,s . | ||
% . Am - | % . Am - | ||
decade. :t will not only increase our re-serve margin. but also will cut costs dur- * * " - * , - | decade. :t will not only increase our re-serve margin. but also will cut costs dur- * * " - * , - | ||
,4 | ,4 | ||
, ,e f e - | , ,e f e - | ||
.y y r., N. | .y y r., N. | ||
_,] . | _,] . | ||
.wf '-u'~ | .wf '-u'~ | ||
-g* | -g* | ||
ing peak lead penods. compared w1th y w g}' *7 l | ing peak lead penods. compared w1th y w g}' *7 l | ||
more expensive purchased power er gas turbine capacity. | more expensive purchased power er gas turbine capacity. | ||
._.4 Q.? | ._.4 Q.? | ||
.t , , | .t , , | ||
;i 4 : .g , 4., . | |||
;i | |||
4 : .g , 4., . | |||
% -p. p , | % -p. p , | ||
D ' | D ' | ||
.2 y; | .2 y; | ||
,, .. c | ,, .. c | ||
.,N. A | .,N. A | ||
%* .~ | %* .~ | ||
. T. %. ',. | . T. %. ',. | ||
The year also saw completion of | |||
,,j ,uN' - | ,,j ,uN' - | ||
rail line facilities to ceiiver cd to a a - | rail line facilities to ceiiver cd to a a - | ||
g k" | g k" | ||
~ | ~ | ||
tank farm serving Oswego Steam Sta-tien. A leased system of interconnected | tank farm serving Oswego Steam Sta-tien. A leased system of interconnected | ||
( p. , | ( p. , | ||
;,4 . | ;,4 . | ||
,1-1 | ,1-1 | ||
- # l | - # l 3' s. u I | ||
tank cars is avadable to haul the fuel to ~' , *G N! | |||
3' s. u | |||
' - t ' | ' - t ' | ||
: m. . | : m. . | ||
Oswego. The rad operation, which g .- ., = ,. | Oswego. The rad operation, which g .- ., = ,. | ||
, c ~J . | , c ~J . | ||
* 9% .: . | * 9% .: . | ||
~ ., ' | ~ ., ' | ||
began de!ivenes in January 1980. T' . | began de!ivenes in January 1980. T' . | ||
-1v o - | -1v o - | ||
'. ~ c. -, '" . | '. ~ c. -, '" . | ||
.?- . . | .?- . . | ||
cor-'plements te usual barge ship- @ - + | cor-'plements te usual barge ship- @ - + | ||
V2 ' '' | V2 ' '' | ||
'? | '? | ||
' I. Y 'E "Y.- - '-~ " J r ' | ' I. Y 'E "Y.- - '-~ " J r ' | ||
ments over Lake Ontano, seasonally - | ments over Lake Ontano, seasonally - | ||
.3 restncted to non-winter months. The j . . ,. " .._ . 1. 1 . ' | .3 restncted to non-winter months. The j . . ,. " .._ . 1. 1 . ' | ||
. 7 f ''1 : ,. | . 7 f ''1 : ,. | ||
l trains are capable of cairying more tan 45.000 barrels per mp and can be un. Niagara Mohawk's steam station is landmark on Oswego skyline as night settles in loaded in ess than six hours. histonc Port City. Two stacks serve six generating units, with recently completed sixth unit boosting output to 2.050.000 kdowatts at power plant now among In January 1980, after three years of N etheast's largest. Oswego River. flowing in foreground to Lake Ontano. is artery of N.Y. State Barge Canal System. | |||
putlic heanngs and review ci hundreds I of ude-ranging endronmental and - - - | putlic heanngs and review ci hundreds I of ude-ranging endronmental and - - - | ||
ecencmic detads. me State Board en E'ecmc Generaten Sidng approved agreements and necessary envirer - probiems with avadability and desvery and certified me pnmary !ocaton for m antal controis. of fuel and conversions of fuel handling te t 7 millien-tlowatt Lake Ene Dunng te past year, various meas- and boiler ecuipment represent un-Generaung Staten planned in south- ures and studies were uncertaken. all reasonable expenditures. | ecencmic detads. me State Board en E'ecmc Generaten Sidng approved agreements and necessary envirer - probiems with avadability and desvery and certified me pnmary !ocaton for m antal controis. of fuel and conversions of fuel handling te t 7 millien-tlowatt Lake Ene Dunng te past year, various meas- and boiler ecuipment represent un-Generaung Staten planned in south- ures and studies were uncertaken. all reasonable expenditures. | ||
Line 2,246: | Line 1,430: | ||
l | l | ||
1 l | |||
1 | THE PROMISE OF NATURAL GAS SERVING CONSUMERS i i | ||
Our natural gas business is showing by the Public Service Commission to Through our heavily premeted Home posieve contrast against previous years, modify customer billing methods for Energy Audit Program we are effenng when shortages and an uncertain sup- gas, basing rates on heat content rather direct help to consumers in their effp.rts , | Our natural gas business is showing by the Public Service Commission to Through our heavily premeted Home posieve contrast against previous years, modify customer billing methods for Energy Audit Program we are effenng when shortages and an uncertain sup- gas, basing rates on heat content rather direct help to consumers in their effp.rts , | ||
ply picture curtailed growth and new than volume consumed. The new to reduce beaung and energy ccsts. In- l markets for the fuel. therm billing became necessary as itiated in mid-1978 under the state's in 1979. permits were issued to at- Consolidated Cas started delivering Home Insulation and Energy Act, the tach 10.600 residential 1.000 com- hiagara Mohawk a mixture of domestic service is making marked gains, pro-mercial and 50 industnal customers to and imported natural gas with varying ducing some 22.700 individual home | ply picture curtailed growth and new than volume consumed. The new to reduce beaung and energy ccsts. In- l markets for the fuel. therm billing became necessary as itiated in mid-1978 under the state's in 1979. permits were issued to at- Consolidated Cas started delivering Home Insulation and Energy Act, the tach 10.600 residential 1.000 com- hiagara Mohawk a mixture of domestic service is making marked gains, pro-mercial and 50 industnal customers to and imported natural gas with varying ducing some 22.700 individual home our gas system which promise addi- heat contents. Because the imported energy audits in 1979, compared with conal sales. This growth has entailed gas contains about 10% more heat 860 for 1978. | ||
constructicn of 38 mdes of new mains, energy (Stu) per cubic foot than 6.100 laterals and other gas service dcmestic gas, the billing un:ts are now in this widely recognized program, facilities over tne past year. therms instead of cubic feet.The new specially trained Consumer Reiations method, now employed by many representatives work first-hand with The gradual easing of restrictions utilices, prctects censumers by customers to upgrade efficiency and on gas usage and new sales started in uniformly charging for gas based on cut back on energy usage through any the ! ate 1970s. due primanly to volun- actual heat received. The change does of three types of audits.These range tary conservation by censumers and in- not represcrit a rate increase or affect from our representatives visiting and in-creased delivery from our wholesale our revenues. spectng homes to completion cf ques-supplier. Consolidated Gas Supply tiennaires and do-it-yourself audits by Corp. The improved conditions are ex- Despite price increases which are customers themselves. Also included is pected to encourage ccmmercial and sure to occu r, natural gas is still likely a financing plan with repayment op-industnal expansion and create new to hold economic and environmental tions of up to seven years and liberal jobs in our service area. advantages over home heating oil and credit terms. Consumers are also given During 1979, approval was granted other petroleum-based fuels.m lists of local contractors specializing in energy conservation work. As the 1979 heating season began, the Company Gas crew installs service lateral to new res;dential customer in Schenectady area. In received as many as 200 requests per 1979 more than 2.600 new residential customers were attached to our gas system. day for the audits. | |||
our gas system which promise addi- heat contents. Because the imported energy audits in 1979, compared with conal sales. This growth has entailed gas contains about 10% more heat 860 for 1978. | |||
constructicn of 38 mdes of new mains, energy (Stu) per cubic foot than 6.100 laterals and other gas service dcmestic gas, the billing un:ts are now in this widely recognized program, facilities over tne past year. therms instead of cubic feet.The new specially trained Consumer Reiations method, now employed by many representatives work first-hand with The gradual easing of restrictions utilices, prctects censumers by customers to upgrade efficiency and on gas usage and new sales started in uniformly charging for gas based on cut back on energy usage through any the ! ate 1970s. due primanly to volun- actual heat received. The change does of three types of audits.These range tary conservation by censumers and in- not represcrit a rate increase or affect from our representatives visiting and in-creased delivery from our wholesale our revenues. spectng homes to completion cf ques-supplier. Consolidated Gas Supply tiennaires and do-it-yourself audits by Corp. The improved conditions are ex- Despite price increases which are customers themselves. Also included is pected to encourage ccmmercial and sure to occu r, natural gas is still likely a financing plan with repayment op-industnal expansion and create new to hold economic and environmental tions of up to seven years and liberal jobs in our service area. advantages over home heating oil and credit terms. Consumers are also given During 1979, approval was granted other petroleum-based fuels.m lists of local contractors specializing in energy conservation work. As the 1979 | |||
heating season began, the Company Gas crew installs service lateral to new res;dential customer in Schenectady area. In received as many as 200 requests per 1979 more than 2.600 new residential customers were attached to our gas system. day for the audits. | |||
Many were conversions from home heating oil. In related activities. late in 1979 we | Many were conversions from home heating oil. In related activities. late in 1979 we | ||
: y. . | : y. . | ||
launched " Low-Cost. No-Cost" home | launched " Low-Cost. No-Cost" home | ||
' . # . %I, , ... . . . . , | ' . # . %I, , ... . . . . , | ||
energy savings workshops for censum- | energy savings workshops for censum- | ||
[e ''l . | [e ''l . | ||
Line 2,274: | Line 1,446: | ||
A f- cities. Publicized and promoted locally i | A f- cities. Publicized and promoted locally i | ||
7 .. | 7 .. | ||
; .* - '1 + O1 | ; .* - '1 + O1 in advance, these sessiens were cen-k ;p ' | ||
-/; .e .. k <W$.4 A ,* | |||
in advance, these sessiens were cen-k ;p ' | |||
-/; .e .. k <W$.4 | |||
A ,* | |||
'..j;}kW*-' | '..j;}kW*-' | ||
;e | ;e | ||
'NN. ducted by Company specialists who in-struct audiences of homeowners on the gi dits | 'NN. ducted by Company specialists who in-struct audiences of homeowners on the gi dits | ||
,f l;...~ t Q, j' ' | ,f l;...~ t Q, j' ' | ||
g- | g-a . . | ||
. '.7, many inexpensive ways, including weatherstripping, caulking and plastic l . y ;. ' - | |||
a . . | |||
. '.7, many inexpensive ways, including weatherstripping, caulking and plastic | |||
l . y ;. ' | |||
s ctm w1ndcws, to reduce energy costs. | s ctm w1ndcws, to reduce energy costs. | ||
I %4 1 | I %4 1 | ||
* 6, in view of its immediate acceptance, we | |||
6, in view of its immediate acceptance, we | |||
- f ~ | - f ~ | ||
- f . ,, _ . | - f . ,, _ . | ||
'l +i | 'l +i | ||
_ {L | _ {L more than likely will expand the " Low-Cest. No-Cost" cencept and schedule i ' '' these helpful, informal seminars in | ||
more than likely will expand the " Low-Cest. No-Cost" cencept and schedule | |||
i ' '' these helpful, informal seminars in | |||
'?.L4 | '?.L4 | ||
~- | ~- | ||
a l' I | a l' I | ||
- M"' other communities across our system. | - M"' other communities across our system. | ||
. .c | . .c | ||
.,6~ | .,6~ | ||
L T ,. | L T ,. | ||
'+ | '+ | ||
gs* - , __ 6 At the same time, we are centinuing meetngs and workshops with industrial | |||
gs* - , __ 6 | |||
At the same time, we are centinuing meetngs and workshops with industrial | |||
_ 'f . | _ 'f . | ||
.t J ~5 J and commercial customers. | .t J ~5 J and commercial customers. | ||
. ' ') - | . ' ') - | ||
~ | ~ | ||
~ ' | ~ ' | ||
,u-r ' r i .M ( , D " - . | ,u-r ' r i .M ( , D " - . | ||
In 1979, an irregular metering unit was organized to detect and prevent t, | |||
In 1979, an irregular metering unit was organized to detect and prevent | |||
t, | |||
~- | ~- | ||
i M ' ' t J- ?? 't . . n, | i M ' ' t J- ?? 't . . n, | ||
_ y g;( 7~ -.* t , WP( w. meter tampenng and theft cf electne | _ y g;( 7~ -.* t , WP( w. meter tampenng and theft cf electne | ||
: q. j.- 7 | : q. j.- 7 | ||
-( '. | -( '. | ||
3 | 3 | ||
Line 2,363: | Line 1,488: | ||
. w '. # Q f -?%. so do incidents involving theit and at-N - .s .-- tempts to by-pass meters. The new unit | . w '. # Q f -?%. so do incidents involving theit and at-N - .s .-- tempts to by-pass meters. The new unit | ||
.. ;d.g m , | .. ;d.g m , | ||
e * ' T - h ' (. ;:._ [.. . <N7. - 4 g, is responsible for coordinauen of p,f:/ / -, ' ' | e * ' T - h ' (. ;:._ [.. . <N7. - 4 g, is responsible for coordinauen of p,f:/ / -, ' ' | ||
r' Company-wide computer alert and p % .. #{.=n e*M r .j. ?g.W%' =. . : | r' Company-wide computer alert and p % .. #{.=n e*M r .j. ?g.W%' =. . : | ||
+ | + | ||
$yj, .' .' ~~g.1, I | $yj, .' .' ~~g.1, I y/ .M c,<, meter-sealing efferts, field inspectens. | ||
y/ .M c,<, meter-sealing efferts, field inspectens. | |||
a manual on irregular metering and | a manual on irregular metering and | ||
.g V . c. e, . 3 . , ; h'y,.v._:y %g p Y' MA-W i.y | .g V . c. e, . 3 . , ; h'y,.v._:y %g p Y' MA-W i.y N.E | ||
N.E | |||
_. v 4f. - . | _. v 4f. - . | ||
cash rewards to empicyees repomng | cash rewards to empicyees repomng | ||
_ _ _ _ _ . _ . . _ . __ _ _ _ , _ . - _ . _ . _ _ _ _ _ _ _ _ _ _ _ , . _ _ _ _ _ _ . . . _ . . _ _ _ . ~ _ , . _ _ _ - _ , , , _ . . _ - | _ _ _ _ _ . _ . . _ . __ _ _ _ , _ . - _ . _ . _ _ _ _ _ _ _ _ _ _ _ , . _ _ _ _ _ _ . . . _ . . _ _ _ . ~ _ , . _ _ _ - _ , , , _ . . _ - | ||
i suspected theft or tampering situations. ._.,,,s Community Relations as a two-way link A!!ied with our Secunty function, E. 1- - - . , 2 . ? .; with govemment officials and opinion investigations by the new unit resulted g. c | |||
i | |||
suspected theft or tampering situations. ._.,,,s Community Relations as a two-way link A!!ied with our Secunty function, E. 1- - - . , 2 . ? .; with govemment officials and opinion investigations by the new unit resulted g. c | |||
.cf 4g | .cf 4g | ||
.c.m A.s leaders,our volunteer Spealgrs in 65 arrests for theft of service during e y M .-. | .c.m A.s leaders,our volunteer Spealgrs in 65 arrests for theft of service during e y M .-. | ||
Bureau. Energy Informattor1 Center at the year. | Bureau. Energy Informattor1 Center at the year. | ||
To reinforce service reliability for our i | To reinforce service reliability for our i | ||
Line 2,405: | Line 1,509: | ||
. , , . ., . c tnbution lines was stepped up during These were broadenedin response to a the year. The work Is critical not only to "*/ / " Q W*D. . e^ sharp increase in requests for nuclear maintain a high degree of dependabi5ty - | . , , . ., . c tnbution lines was stepped up during These were broadenedin response to a the year. The work Is critical not only to "*/ / " Q W*D. . e^ sharp increase in requests for nuclear maintain a high degree of dependabi5ty - | ||
7dy information across our service territory. | 7dy information across our service territory. | ||
h_ pf p | h_ pf p but also to hold emergency repair costs g ._ .m .d down when storms and severe winds | ||
but also to hold emergency repair costs g ._ .m .d down when storms and severe winds | |||
.W 4A_ | .W 4A_ | ||
;;., M U > ' . Oa High among several current con-stnke our region. Trees and branches cepts to reduce consumers' failing on wires cause about 90% of the + , 2NM | ;;., M U > ' . Oa High among several current con-stnke our region. Trees and branches cepts to reduce consumers' failing on wires cause about 90% of the + , 2NM | ||
>' 4 energy costs through a change in rate few powerintemaptions which do oc- f- T . " ' I4 design is a proposal to price electricity cur, arsd line clearance schedules are " | >' 4 energy costs through a change in rate few powerintemaptions which do oc- f- T . " ' I4 design is a proposal to price electricity cur, arsd line clearance schedules are " | ||
sales according to the time of day it is keyed to special problem areas. [ | sales according to the time of day it is keyed to special problem areas. [ | ||
F g | F g | ||
~ | ~ | ||
used. " Time-of-day" rate plans have been under review by the public Service | used. " Time-of-day" rate plans have been under review by the public Service Again last year, the Consumer Y Commission, and we are activelyin-Advisory Council on Energy C. , , | ||
volved in proceedings, including pub 5c Affairs-comprised of 26 citizens rep- % >7 ' .' 5 hearings, to examine these proposals. | volved in proceedings, including pub 5c Affairs-comprised of 26 citizens rep- % >7 ' .' 5 hearings, to examine these proposals. | ||
resenting a cross-section of consumer s We anticipate the Commission's overall and communityinterests-proved 4 - decision on revised rate structures by uniquely helpfulin engendering two- i early 1980. | resenting a cross-section of consumer s We anticipate the Commission's overall and communityinterests-proved 4 - decision on revised rate structures by uniquely helpfulin engendering two- i early 1980. | ||
Line 2,432: | Line 1,532: | ||
ing the Company to help make us more govemment and community groups. N.Y. State average g37,99 sensitive to changing consumer needs. This work closely parallels the infor- !".U"*?"G7.h;. _ | ing the Company to help make us more govemment and community groups. N.Y. State average g37,99 sensitive to changing consumer needs. This work closely parallels the infor- !".U"*?"G7.h;. _ | ||
mational objectives of our public Affairs To that end, a host of other new and Corporate Communications De-Nao nai average su and continuing programs and ef- partment. !n recent years, continually ~ | mational objectives of our public Affairs To that end, a host of other new and Corporate Communications De-Nao nai average su and continuing programs and ef- partment. !n recent years, continually ~ | ||
forts are under way for our consum- rising energy costs and a multitude of P ers. These recognize today's need for utility and other energy-oriented | forts are under way for our consum- rising energy costs and a multitude of P ers. These recognize today's need for utility and other energy-oriented service at a more individual personal issues-nearly all coupled with our ',"f"" | ||
service at a more individual personal issues-nearly all coupled with our ',"f"" | |||
we an.c .". ".cs 12mno level and better assist consumers with complex role as principal electric and ss. eur-amnar semina iansas l ~ ~ ~ " ' | we an.c .". ".cs 12mno level and better assist consumers with complex role as principal electric and ss. eur-amnar semina iansas l ~ ~ ~ " ' | ||
l their own special energy problems. Ac- gas supplier-underscore need for tivities include a new senior consumers communications effectiveness. For program, a new extended billing due these reasons, corporate communica-date plan for the retired and disabled. tions assignments and goals were ex-an upgrading of our budget-payment panded in 1979 to generate added pub-plan, a winter referral procedure for lic awareness and understanding of hardship cases, a third-party not2 fica- Niagara Mohawk and the problems we | l their own special energy problems. Ac- gas supplier-underscore need for tivities include a new senior consumers communications effectiveness. For program, a new extended billing due these reasons, corporate communica-date plan for the retired and disabled. tions assignments and goals were ex-an upgrading of our budget-payment panded in 1979 to generate added pub-plan, a winter referral procedure for lic awareness and understanding of hardship cases, a third-party not2 fica- Niagara Mohawk and the problems we | ||
, tion plan for customers who may need face. While directed pnmarily at print l help, modified disconnection proce- and electronic media through daily dures and maintenance of lists of cus- news coverage and advertising, our in-temers requiring e!ectrically operated formation programs also include 12 | , tion plan for customers who may need face. While directed pnmarily at print l help, modified disconnection proce- and electronic media through daily dures and maintenance of lists of cus- news coverage and advertising, our in-temers requiring e!ectrically operated formation programs also include 12 | ||
{ | { | ||
* SEARCHING FOR OTHER ENERGY SOURCES Prospects of rising costs, scare:ty of meet environmental standards.The the three-year prcject. Put into wide- l l energy fuels and potential enactment of fac:iity, including the demonstration. is spread future use in our system, the , | |||
SEARCHING FOR OTHER ENERGY SOURCES Prospects of rising costs, scare:ty of meet environmental standards.The the three-year prcject. Put into wide- l l energy fuels and potential enactment of fac:iity, including the demonstration. is spread future use in our system, the , | |||
stil further environmental directives budgeted at about $55 million and vil equipment would help reduce peak..- | stil further environmental directives budgeted at about $55 million and vil equipment would help reduce peak..- | ||
place a new urgency upon research and have many desirable features net pres- loads that power stations must supply, deve!cpment as we enter the 1980s. ent in current SO, " scrubbing" thus lowering fuel and cperating costs technology. Moreover, it is designed to for both the utility and its consumers. | place a new urgency upon research and have many desirable features net pres- loads that power stations must supply, deve!cpment as we enter the 1980s. ent in current SO, " scrubbing" thus lowering fuel and cperating costs technology. Moreover, it is designed to for both the utility and its consumers. | ||
Last year, Niagara Mohawk's R&D receive gases from the combustion of ; | Last year, Niagara Mohawk's R&D receive gases from the combustion of ; | ||
programs encompassed 53 separate high-su! fur Eastem coal. Since this coal We are also making continuing - | programs encompassed 53 separate high-su! fur Eastem coal. Since this coal We are also making continuing - | ||
projects,inchding both independent is in abundant supply and less expen- strides in other high technology l "in-house" assignments by the Com- sive to bum than low-sulfur Westem energy research and environmentally l pany as well as cooperanve studies with coals, the project effers potential for re- oriented projects recentlyinitiated or l | projects,inchding both independent is in abundant supply and less expen- strides in other high technology l "in-house" assignments by the Com- sive to bum than low-sulfur Westem energy research and environmentally l pany as well as cooperanve studies with coals, the project effers potential for re- oriented projects recentlyinitiated or l | ||
; other utility and research groups. In duced costs of generation consistent under way for some time.The listin- l | ; other utility and research groups. In duced costs of generation consistent under way for some time.The listin- l 1979 alone. Niagara Mohawk spent with environmental standards. ciudes a 4.800-kilowatt fuel cell proto- ; | ||
1979 alone. Niagara Mohawk spent with environmental standards. ciudes a 4.800-kilowatt fuel cell proto- ; | |||
; over S 11 million for RSD. This amounts in October, Niagara Monawk and type scheduled for startup in 1981: | ; over S 11 million for RSD. This amounts in October, Niagara Monawk and type scheduled for startup in 1981: | ||
conversion of coal to clean-liquid or | conversion of coal to clean-liquid or to acout eight deilars for every electne federal and state agenc:es jcintly an-4 customer in our service area, with more nounced an RSD program aimed at re- gasecus fuel; wind and solar energy re-than half spent for further refining elec- ducing home-heatng costs by using search: and varied pcwer transmission, tne generatien technology, commuruty-wide energy resources at distnbution and substation improve-A project attracting worldwide in- Radisson, a new community north cf ments. All focus upon improving effi-terest is a major electnc lead manage- Syracuse. This experiment, under direc- ciency and reducing operatir g costs and ment and energy storage experiment at tion of the State Energy Research and adverse impacts on air, water and land. | ||
to acout eight deilars for every electne federal and state agenc:es jcintly an-4 customer in our service area, with more nounced an RSD program aimed at re- gasecus fuel; wind and solar energy re-than half spent for further refining elec- ducing home-heatng costs by using search: and varied pcwer transmission, tne generatien technology, commuruty-wide energy resources at distnbution and substation improve-A project attracting worldwide in- Radisson, a new community north cf ments. All focus upon improving effi-terest is a major electnc lead manage- Syracuse. This experiment, under direc- ciency and reducing operatir g costs and ment and energy storage experiment at tion of the State Energy Research and adverse impacts on air, water and land. | |||
the linng quarters for contestants and Develcpment Authority, seeks methods In concert with the state's other officials in the 1980 Winter Olympic to employ the earth's heating and cool- invester-owned utilities, we will continue Games at Lake Placid. With Niagara ing potential to fill basic energy needs. maintaining vigorous R&D efforts. Our Mohawk as originator and manager of Water source heat pumps using indi- mutual goals seek to reduce depen-the project. athletes from nearly 40 na- vidual wells, common wells, or river or dence upe . foreign oil, encourage tions w1!! p!ay an important role in this pond water, will serve to supplement energy conservation and hold energy one-of a-kind study. its objective: to col- customary home heating equipmentin costs down for consumers.m lect information and data on different i types of heat storage devices and to weigh their possible effect en utility Artist's concept of Radisson community-wide research project where several electnc supply systems in the years homes are warmed and cooled by heat pumps using same water from ground ahead. Under joint sponscrship with sources is discussed by Richard C. Clancy, nght. vice president of research and federal and state agencies and pnvate environmental affairs, and Howard Reynolds. disolay specialist. Project also seeks companies, the $2-millien expenment to increase water's heat content by recaptunng community's low-grace heat. | the linng quarters for contestants and Develcpment Authority, seeks methods In concert with the state's other officials in the 1980 Winter Olympic to employ the earth's heating and cool- invester-owned utilities, we will continue Games at Lake Placid. With Niagara ing potential to fill basic energy needs. maintaining vigorous R&D efforts. Our Mohawk as originator and manager of Water source heat pumps using indi- mutual goals seek to reduce depen-the project. athletes from nearly 40 na- vidual wells, common wells, or river or dence upe . foreign oil, encourage tions w1!! p!ay an important role in this pond water, will serve to supplement energy conservation and hold energy one-of a-kind study. its objective: to col- customary home heating equipmentin costs down for consumers.m lect information and data on different i types of heat storage devices and to weigh their possible effect en utility Artist's concept of Radisson community-wide research project where several electnc supply systems in the years homes are warmed and cooled by heat pumps using same water from ground ahead. Under joint sponscrship with sources is discussed by Richard C. Clancy, nght. vice president of research and federal and state agencies and pnvate environmental affairs, and Howard Reynolds. disolay specialist. Project also seeks companies, the $2-millien expenment to increase water's heat content by recaptunng community's low-grace heat. | ||
w111 contnue through 1982.The Olym- - - - ..= = cau u yu pic Village structures are currently planned to functon as a Federal minimum secunty insatutien when the Winter Games are ever. t _ | w111 contnue through 1982.The Olym- - - - ..= = cau u yu pic Village structures are currently planned to functon as a Federal minimum secunty insatutien when the Winter Games are ever. t _ | ||
fw Heat Energy... | fw Heat Energy... | ||
A large-scale research effort re- , | A large-scale research effort re- , | ||
lated to suifur emissions and holding _ | lated to suifur emissions and holding _ | ||
promise of bcth cost and environmen- ' | promise of bcth cost and environmen- ' | ||
4 tal breakthroughs was initiated jointly by the Empire State E'ectric Energy i e i . | 4 tal breakthroughs was initiated jointly by the Empire State E'ectric Energy i e i . | ||
Research Corp., U.S. Environmental 1 | Research Corp., U.S. Environmental 1 | ||
Protecten Agency. E:ectnc Power .I | Protecten Agency. E:ectnc Power .I Research Insttute. N.Y. State Energy , | ||
,, i Research and Development Authenty, and RocxweilIntemational. Niagara Mchawk is hest utility and managing m.,s r - | |||
Research Insttute. N.Y. State Energy , | |||
,, i Research and Development Authenty, and RocxweilIntemational. Niagara | |||
agent. Constructen actvity started last | agent. Constructen actvity started last | ||
* fail at our Hunt!ey Steam Statien near . | * fail at our Hunt!ey Steam Statien near . | ||
. Surfalo. In tne planning stage for L | . Surfalo. In tne planning stage for L | ||
several years, the work consists cf de- ,,,.,,,. | several years, the work consists cf de- ,,,.,,,. | ||
signing, procurement constructicn. -- ; ,,."."":{" l",,,;,,,:O,.""- | |||
,l start-up. tesung and demonstrating the -- ,:l"O" - | |||
,l | |||
start-up. tesung and demonstrating the -- ,:l"O" - | |||
re!iability of an experimental prototype to reduce suifur dicxide emissions to 13 l | re!iability of an experimental prototype to reduce suifur dicxide emissions to 13 l | ||
O | O OUR PEOPLE At the year end, Niagara Mohawk's work About 210,000 stockholders pres- matter of gifts, invitations and awards force numbered 9.600, about the same ently own common shares of Niagara from vendors and estabiish standards os in 1957, when the Company served Mohawk and 11,000 hold preferred and regarding outside employment, use of 347,000 fewer customers. preference stock. The chart below indi- Company personnel, equiEment and cates many stockholders own fewer facilities. Also presented are standards The total payrollin 1979 was $224 than 100 shares. for employees holding public office, million, of which $163 million was relationships with govemmental authori-charged to operations and the balance See otholeng Total Totalsrees ties, disclosure of proprietary informa-primarily for new construction. These (Sh8/88) Stoc*nocers hero tion and accurate maintenance of figures were $ 197 million and $145 mil- 1 to 99 61,092 2.078.575 Company records. Management and lion for 1978. Overtime costs were $23 100 to 999 141,375 32,343,435 most supervisory employees signed a million in 1979, compared with $ 14 mil- 1,000 or more 7,198 33.530.033 Certificate of Compliance and Disclo-lion in 1978. 209,665 67.952,043 sure after reviewing the Code at meet-A 7.1% wage increase on June 1, ings across the System. The certificates 1979 was part of a two-year contract For the second year, a series of are to be renewed every two years. | ||
OUR PEOPLE At the year end, Niagara Mohawk's work About 210,000 stockholders pres- matter of gifts, invitations and awards force numbered 9.600, about the same ently own common shares of Niagara from vendors and estabiish standards os in 1957, when the Company served Mohawk and 11,000 hold preferred and regarding outside employment, use of 347,000 fewer customers. preference stock. The chart below indi- Company personnel, equiEment and cates many stockholders own fewer facilities. Also presented are standards The total payrollin 1979 was $224 than 100 shares. for employees holding public office, million, of which $163 million was relationships with govemmental authori-charged to operations and the balance See otholeng Total Totalsrees ties, disclosure of proprietary informa-primarily for new construction. These (Sh8/88) Stoc*nocers hero tion and accurate maintenance of figures were $ 197 million and $145 mil- 1 to 99 61,092 2.078.575 Company records. Management and lion for 1978. Overtime costs were $23 100 to 999 141,375 32,343,435 most supervisory employees signed a million in 1979, compared with $ 14 mil- 1,000 or more 7,198 33.530.033 Certificate of Compliance and Disclo-lion in 1978. 209,665 67.952,043 sure after reviewing the Code at meet-A 7.1% wage increase on June 1, ings across the System. The certificates 1979 was part of a two-year contract For the second year, a series of are to be renewed every two years. | |||
with 12 locals in System Council U-11 seminars was held in various com-of theintemationalBrotherhood of munities in our service area to offer our Starting in 1979, Niagara Mohawk Electncal Workers (AFL CO). Approx- stockholders an opportunity for direct, assumed responsibility for the ad-imately 7.500 employees are repre- informal communication with top man- ministration of our constantly growing sented in the contract, which expires agement. The popular sessions, at. Dividend Reinvestment and Stock May 31,1980. tended by more than 600 stockholders Purchase Plan. Preferred and prefer-from au waiks of life,lesve no doubt that ence stockholders became eligible to Employee training continued at in- security hclders have a strong desire for participate and the limit on optional creased levels in all Niagara Mohawk information about the Company. Ques, cash contributions was increased to operations in 1979. Our safety training tionnaires completed by those attend- $5,000 quarterly. Under the Plan, is recognized throughout the utility ng meetings at Dunkirk, Gloversville, purchases of newlyissued stock are industry forits on-going, innovative Hudson, Niagara Fa!!s, Olean and made directly frem the Companywith-approach to day-to-day accident pre- Watertown stressed interest in Niagara out incurring brokerage commissions | with 12 locals in System Council U-11 seminars was held in various com-of theintemationalBrotherhood of munities in our service area to offer our Starting in 1979, Niagara Mohawk Electncal Workers (AFL CO). Approx- stockholders an opportunity for direct, assumed responsibility for the ad-imately 7.500 employees are repre- informal communication with top man- ministration of our constantly growing sented in the contract, which expires agement. The popular sessions, at. Dividend Reinvestment and Stock May 31,1980. tended by more than 600 stockholders Purchase Plan. Preferred and prefer-from au waiks of life,lesve no doubt that ence stockholders became eligible to Employee training continued at in- security hclders have a strong desire for participate and the limit on optional creased levels in all Niagara Mohawk information about the Company. Ques, cash contributions was increased to operations in 1979. Our safety training tionnaires completed by those attend- $5,000 quarterly. Under the Plan, is recognized throughout the utility ng meetings at Dunkirk, Gloversville, purchases of newlyissued stock are industry forits on-going, innovative Hudson, Niagara Fa!!s, Olean and made directly frem the Companywith-approach to day-to-day accident pre- Watertown stressed interest in Niagara out incurring brokerage commissions | ||
; vention. The Training Department has Mohawk's position on national energy or service charges.These purchases l | ; vention. The Training Department has Mohawk's position on national energy or service charges.These purchases l | ||
Line 2,497: | Line 1,572: | ||
; and fossil generation training and a supplies and costs.More of these help- A portion of funds the Company re-system-wide campaign to keep employ- fut stockholder forums are planned for quires for periodic financing is provided l | ; and fossil generation training and a supplies and costs.More of these help- A portion of funds the Company re-system-wide campaign to keep employ- fut stockholder forums are planned for quires for periodic financing is provided l | ||
ees informed on prime points and the 1980s. by the Plan. In 1979,34.000 partici-issues in our re~nt rate application. pants, representing 16% of au common About 6,600 or 76% of au eligibl* Security holders with aninterestin stockholders, invested $14.528.000in l employees subscribe to the Company's New York State investor-owned new common shares. Application Employee Savings Fund Plan, aHocat- utilities have formed an independent, forms and literature describing the Plan l | ees informed on prime points and the 1980s. by the Plan. In 1979,34.000 partici-issues in our re~nt rate application. pants, representing 16% of au common About 6,600 or 76% of au eligibl* Security holders with aninterestin stockholders, invested $14.528.000in l employees subscribe to the Company's New York State investor-owned new common shares. Application Employee Savings Fund Plan, aHocat- utilities have formed an independent, forms and literature describing the Plan l | ||
ing from 2% to 6% of their wages toward non-profit organization, the Association are available by writing: | ing from 2% to 6% of their wages toward non-profit organization, the Association are available by writing: | ||
purchase of common stock or U.S. of Investors in New York Utilities,Inc. NMPC Cividend Reinvestrnent Plan Govemment bonds. The Company (AINYG).The new group's announced P.O. Box 131 matched their contnbutions by 50% for Syracuse. N.Y.13201 a purpose is "to protect the financial in-l a total $3.356.000 in 1979.The Plan tegrity of New Yorkinvestor-owned holds 5.883,000 shares or 9% of the utilities so they can supply the power outstanding common stock.In addi- needs of the State at reasonable cost to tien, employees may make unmatched users and reasonable profit to owners." | purchase of common stock or U.S. of Investors in New York Utilities,Inc. NMPC Cividend Reinvestrnent Plan Govemment bonds. The Company (AINYG).The new group's announced P.O. Box 131 matched their contnbutions by 50% for Syracuse. N.Y.13201 a purpose is "to protect the financial in-l a total $3.356.000 in 1979.The Plan tegrity of New Yorkinvestor-owned holds 5.883,000 shares or 9% of the utilities so they can supply the power outstanding common stock.In addi- needs of the State at reasonable cost to tien, employees may make unmatched users and reasonable profit to owners." | ||
contnbutions of up to 4% of their wages. Further information may be obtained | contnbutions of up to 4% of their wages. Further information may be obtained by wri:ing AINYU at Old Camby Road. | ||
Verbank N.Y.12585. | Verbank N.Y.12585. | ||
The Board of Directors in June ap-proved a revised and more com-prehensive Code of Conduct for Niagara Mohawk employees.The Code underscores our firm commitment to a practical, effective ethics policy and ex-plains guidelines best serving interests of the Company,its employees and consumers.The guidelines cover the 14 | The Board of Directors in June ap-proved a revised and more com-prehensive Code of Conduct for Niagara Mohawk employees.The Code underscores our firm commitment to a practical, effective ethics policy and ex-plains guidelines best serving interests of the Company,its employees and consumers.The guidelines cover the 14 | ||
REPORT OF MANAGEMENT Tha consolidated financial statements of Niagara Mohawk in accordance with generally accepted audieng standards. As Power Corporation and its subsidiaries were prepared by and a part of their examinadon,they made a study and evaluation are the responsibility of management. Financial information cf the Company's system cf intemal acccunting control..The. | REPORT OF MANAGEMENT Tha consolidated financial statements of Niagara Mohawk in accordance with generally accepted audieng standards. As Power Corporation and its subsidiaries were prepared by and a part of their examinadon,they made a study and evaluation are the responsibility of management. Financial information cf the Company's system cf intemal acccunting control..The. | ||
contained e!sewhere in this Annual Repcrt is consistent with purpose cf such study was to estaclish a basis for reinmce that in the financial statements. thereon in determining the nature, timing'and extent of other To meet its responsibilities with respect to financialinfor- auditing procedures that were necessary for expressing an micon, management maintains and enforces a system cf opinion as to whether the financial statements are presented intcmal accounong controls, which is designed to provide fairty. Their examinacon resulted in the expression of their recsonable assurance, on a cost effecdve basis, as to the opinion which follows this report. The independent accoua-integnty, objectivity and reliability of the financial reccrds and tants' examination dces not limit in any way managemc s prctecion of assets. This system includes communication responsibility for the fair presentacon of the financial state-through wntten policies and procedures, an organizational ments and a!! ctner information, whether audited or unau-structure that provides for appropriate division of responsi i- dited. In this Annual Report. | contained e!sewhere in this Annual Repcrt is consistent with purpose cf such study was to estaclish a basis for reinmce that in the financial statements. thereon in determining the nature, timing'and extent of other To meet its responsibilities with respect to financialinfor- auditing procedures that were necessary for expressing an micon, management maintains and enforces a system cf opinion as to whether the financial statements are presented intcmal accounong controls, which is designed to provide fairty. Their examinacon resulted in the expression of their recsonable assurance, on a cost effecdve basis, as to the opinion which follows this report. The independent accoua-integnty, objectivity and reliability of the financial reccrds and tants' examination dces not limit in any way managemc s prctecion of assets. This system includes communication responsibility for the fair presentacon of the financial state-through wntten policies and procedures, an organizational ments and a!! ctner information, whether audited or unau-structure that provides for appropriate division of responsi i- dited. In this Annual Report. | ||
Line 2,516: | Line 1,587: | ||
Syracuse, New York January 25,1980 15 | Syracuse, New York January 25,1980 15 | ||
CONSOUDATED STATEMENT OF INCOME AND RETAINED EARNINGS NIAGARA MOHAWK POWER CORPCRATICN AND SUBS'OtARIES In thousancs of dollars For the year ended Decemoer 31 1979 1978 1977 1976 ---. 1975 Operating revenues. | CONSOUDATED STATEMENT OF INCOME AND RETAINED EARNINGS NIAGARA MOHAWK POWER CORPCRATICN AND SUBS'OtARIES In thousancs of dollars For the year ended Decemoer 31 1979 1978 1977 1976 ---. 1975 Operating revenues. | ||
Electric , $1,211,068 $1,020,313 $ 987,760 * $ 863,012 $795,917 Gas . 305,435 259,935 238,072 214.218 176,289 1,516,503 1,280.248 1.225,832 1.077,230 972,206 Operating expenses: | Electric , $1,211,068 $1,020,313 $ 987,760 * $ 863,012 $795,917 Gas . 305,435 259,935 238,072 214.218 176,289 1,516,503 1,280.248 1.225,832 1.077,230 972,206 Operating expenses: | ||
Line 2,536: | Line 1,605: | ||
i t | i t | ||
a | a CONSOUDATED BALANCE SHEET i N1AGAAA MCHAWK PCWER CCPPORA71CN AND SUBSiCIAAIES in thousancs of ccIlars At Cecember 31, 1979 1978 ,,, | ||
CONSOUDATED BALANCE SHEET i N1AGAAA MCHAWK PCWER CCPPORA71CN AND SUBSiCIAAIES in thousancs of ccIlars At Cecember 31, 1979 1978 ,,, | |||
ASSETS ^ | ASSETS ^ | ||
Utility plant, at original cost (Note 3 and Page 26) .. . $4,218,528 53,90 5 374 Less accumulated depreciation and amortization (Note 2) . 1.110,563 1.021.417 3,107,965 2,883,957 Other property and Investments . . 16.149 14.535 Current assets: | Utility plant, at original cost (Note 3 and Page 26) .. . $4,218,528 53,90 5 374 Less accumulated depreciation and amortization (Note 2) . 1.110,563 1.021.417 3,107,965 2,883,957 Other property and Investments . . 16.149 14.535 Current assets: | ||
Cash, including time deposits of $650 and $5,595, respectively . . . 8,527 10,786 Accounts receivable (less allowance for doubtful accounts of $2,400 and $2,000, respectively) . . . | Cash, including time deposits of $650 and $5,595, respectively . . . 8,527 10,786 Accounts receivable (less allowance for doubtful accounts of $2,400 and $2,000, respectively) . . . | ||
179,490 127,219 Miterials and supplies, at average cost: | 179,490 127,219 Miterials and supplies, at average cost: | ||
Coal and oil for production of electncity 109,278 70,232 | Coal and oil for production of electncity 109,278 70,232 l | ||
Other . . 35,E43 29,736 1 Ptspayments 6,709 4.383 339,547 242.356 D:f:rred debits: i Unimortized debt expense . . . 14,124 13,848 ) | |||
0;f:rred recoverable energy costs , 44,170 27,966 l Other 6,982 6.450 ) | 0;f:rred recoverable energy costs , 44,170 27,966 l Other 6,982 6.450 ) | ||
65,276 48,264 | 65,276 48,264 | ||
Line 2,557: | Line 1,623: | ||
Income tax refunds (Note 70) 21,606 21,606 Other 11.933 10,945 33,539 32,551 Accumulated def erred Federalincome taxes (Note 10) . 85,668 56,580 C mmitments and contingencies (Note 72) . - - | Income tax refunds (Note 70) 21,606 21,606 Other 11.933 10,945 33,539 32,551 Accumulated def erred Federalincome taxes (Note 10) . 85,668 56,580 C mmitments and contingencies (Note 72) . - - | ||
53,528,937 53.189.112 i ) CenCtes Je ';C2cn. | 53,528,937 53.189.112 i ) CenCtes Je ';C2cn. | ||
l 17 , | l 17 , | ||
i | i | ||
Line 2,563: | Line 1,628: | ||
e e | e e | ||
1 l | 1 l | ||
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION NIAGARA MCHAWK PCWER CCRPCRA7lCN AND SUBS.CIARIES In it'ousanos cf Codars Fcr tre year enceo Cecomeer 31. 1979 1978 1977 1976 1975 Tctal Financial tesources were provided by: . | CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION NIAGARA MCHAWK PCWER CCRPCRA7lCN AND SUBS.CIARIES In it'ousanos cf Codars Fcr tre year enceo Cecomeer 31. 1979 1978 1977 1976 1975 Tctal Financial tesources were provided by: . | ||
Operations: -- | Operations: -- | ||
Net income , 3156,030 $141,162 5123.832 5108,419 5 114,795 5 644.268 Charges (credits) to income not renuiring (not prnviding) working capital-Depreciation . . 84,212 80.683 77,113 77.629 69.228 388.865 Allowance for funds used dunng , | Net income , 3156,030 $141,162 5123.832 5108,419 5 114,795 5 644.268 Charges (credits) to income not renuiring (not prnviding) working capital-Depreciation . . 84,212 80.683 77,113 77.629 69.228 388.865 Allowance for funds used dunng , | ||
Line 2,573: | Line 1,636: | ||
30.000 70.000 174,000 Sale of mortgage bonds. 118,500 31.500 125,000 - | 30.000 70.000 174,000 Sale of mortgage bonds. 118,500 31.500 125,000 - | ||
100.000 375.000 Sale of promissory note (net) . . | 100.000 375.000 Sale of promissory note (net) . . | ||
2.338 5,671 10.839 18,848 Issua nee oflong-term notes payable . - - | 2.338 5,671 10.839 18,848 Issua nee oflong-term notes payable . - - | ||
15.000 18.000 - | 15.000 18.000 - | ||
Line 2,580: | Line 1,642: | ||
34.955 - - | 34.955 - - | ||
53.366 88,321 Deferred retoverable energy costs . (16,204) (3,015) 4.654 8,785 (591) (6,371 Income tax rvunds . . | 53.366 88,321 Deferred retoverable energy costs . (16,204) (3,015) 4.654 8,785 (591) (6,371 Income tax rvunds . . | ||
1.885 300 (8.686) 1.241 (5.260 Sale of ureiun (Note 3) . . . 35,987 - - - - | 1.885 300 (8.686) 1.241 (5.260 Sale of ureiun (Note 3) . . . 35,987 - - - - | ||
35.987 (Increase) decrease in working capital other than short term debt (see Oe/ow) . 33,660 22,006 1,667 30.465 (122,388) (34.590 Miscellaneous (net) . 5,313 (5.049) 52 4.203 7.592 12.111 58,756 50.782 6.673 34.767 (60,780) 90,198 Total resources provided . , $535,861 S423.450 $370.575 5352.979 5 252.758 $1.935.623 Financial resources were used for: | 35.987 (Increase) decrease in working capital other than short term debt (see Oe/ow) . 33,660 22,006 1,667 30.465 (122,388) (34.590 Miscellaneous (net) . 5,313 (5.049) 52 4.203 7.592 12.111 58,756 50.782 6.673 34.767 (60,780) 90,198 Total resources provided . , $535,861 S423.450 $370.575 5352.979 5 252.758 $1.935.623 Financial resources were used for: | ||
Line 2,590: | Line 1,651: | ||
(103.867) (15.367 Sinking fund requirements on redeemacie preferred stock 5.150 - - 1,800 - | (103.867) (15.367 Sinking fund requirements on redeemacie preferred stock 5.150 - - 1,800 - | ||
6.950 Accounts payable 31,873 7,823 1,001 18.982 (855) 58.824 Accrued taxes and interest . 5,475 4.349 9,317 6.205 2,435 27,781 Other (net) . 7,977 4.473 1.734 3.037 (4.548) 12.673 5 33,660 $ 22.006 S 1.667 5 30.465 $(122.388) $ (34.59C l | 6.950 Accounts payable 31,873 7,823 1,001 18.982 (855) 58.824 Accrued taxes and interest . 5,475 4.349 9,317 6.205 2,435 27,781 Other (net) . 7,977 4.473 1.734 3.037 (4.548) 12.673 5 33,660 $ 22.006 S 1.667 5 30.465 $(122.388) $ (34.59C l | ||
18 l | 18 l | ||
NOTES TO CONS 0LlDATED FINANCIAL STATEMENTS NOTE 1. Summuy of Significant Accounting Policies costs were not charged to current coerations and were not The Company is suelect to regulation my the New York recognized in rates charged to customers. There is no assur-State Public Service Commission (PSC) and the Federal ance that the additional revenues provided by the decommts . | NOTES TO CONS 0LlDATED FINANCIAL STATEMENTS NOTE 1. Summuy of Significant Accounting Policies costs were not charged to current coerations and were not The Company is suelect to regulation my the New York recognized in rates charged to customers. There is no assur-State Public Service Commission (PSC) and the Federal ance that the additional revenues provided by the decommts . | ||
Encrgy Regulatory Ccmmissicn (FERC) with respect to its sioning allowance will ultimately aggregate a sufficient rat:s for service and the maintenance of its accounting rec- amount to decommission the plant. The Company believes ords. The Company's accountmg policies confor:b to gener- that decommissioning costs. if higher than currently pro-ally accepted accounting pnnciples, as applied to regulated vided, will ultimately be recovered m the rate process. al-puolic utilities. and are in accordance with the accounting though no such assurance can be given. | Encrgy Regulatory Ccmmissicn (FERC) with respect to its sioning allowance will ultimately aggregate a sufficient rat:s for service and the maintenance of its accounting rec- amount to decommission the plant. The Company believes ords. The Company's accountmg policies confor:b to gener- that decommissioning costs. if higher than currently pro-ally accepted accounting pnnciples, as applied to regulated vided, will ultimately be recovered m the rate process. al-puolic utilities. and are in accordance with the accounting though no such assurance can be given. | ||
Line 2,607: | Line 1,664: | ||
._ _ - _ _ _ _ _. .m . __ _ __.. . .__ _ _ _ . . ___ | ._ _ - _ _ _ _ _. .m . __ _ __.. . .__ _ _ _ . . ___ | ||
, Notes to Consondered Rnancial Statements continued | , Notes to Consondered Rnancial Statements continued | ||
, ferred taxes are provided on benefits realized from the class pany has previously indicated it would sell a portion of the life system of depreciation permitted under the Revenue Act output to reduce not assets and associated carrying charges. | , ferred taxes are provided on benefits realized from the class pany has previously indicated it would sell a portion of the life system of depreciation permitted under the Revenue Act output to reduce not assets and associated carrying charges. | ||
of 1971 (shorter depreciable lives, repair allowance and cost in connection therewith, during 1979 the Company sold of removal), on energy and purchased gas costs, on nuclear uranium produced by NMU for approximately 536,000,000. | of 1971 (shorter depreciable lives, repair allowance and cost in connection therewith, during 1979 the Company sold of removal), on energy and purchased gas costs, on nuclear uranium produced by NMU for approximately 536,000,000. | ||
fuel disposal costs and on certain other items, as approved by The Company expects to self additional portI5ds of the NMU the PSC (see Notes 3 and 10). No deferred taxes are provided output in the future. The inves'tment in the subsidiary, which for other depreciation differences (including accelerated includes costs incurred since acquisition and AFC, has been methods of depreciation), except under necessity certificates reduced by the proceeds from the sale of uranium, net of tax. | fuel disposal costs and on certain other items, as approved by The Company expects to self additional portI5ds of the NMU the PSC (see Notes 3 and 10). No deferred taxes are provided output in the future. The inves'tment in the subsidiary, which for other depreciation differences (including accelerated includes costs incurred since acquisition and AFC, has been methods of depreciation), except under necessity certificates reduced by the proceeds from the sale of uranium, net of tax. | ||
in prior years, or for other items (such as taxes, a portion of Such investment totaled $72,000.000 and $87,600.000 at De- | in prior years, or for other items (such as taxes, a portion of Such investment totaled $72,000.000 and $87,600.000 at De- | ||
; AFC, pensions and certain other employee benefits) which cember 31,1979 and 1978, rer.pectively, and is included in | ; AFC, pensions and certain other employee benefits) which cember 31,1979 and 1978, rer.pectively, and is included in are deducted currently for tax purposes but capitalized for Nuclear Fuel in the consolidated financial statements. | ||
i accounting purposes. On September 8,1978, the PSC issued an ordsr approving Effective January 1,1975, the benefits resulting from an the Company's investment in NMU, its guaranty of the NMU increase in the investment tax credit from 4% to 10% and notes and permitting, with prior approval, such subsequent j from the change in the limitation on the amount of credit advances as may be necessary to finance the uranium proj. | |||
are deducted currently for tax purposes but capitalized for Nuclear Fuel in the consolidated financial statements. | |||
i accounting purposes. On September 8,1978, the PSC issued an ordsr approving | |||
Effective January 1,1975, the benefits resulting from an the Company's investment in NMU, its guaranty of the NMU increase in the investment tax credit from 4% to 10% and notes and permitting, with prior approval, such subsequent j from the change in the limitation on the amount of credit advances as may be necessary to finance the uranium proj. | |||
which may be claimed in any year has been deferred. One- ect. Further, of factive July 1,1978, all benefits associated with half of the 4% investment tax credits realized have been allo- NMU accounting-tax timing differences have been deferred. | which may be claimed in any year has been deferred. One- ect. Further, of factive July 1,1978, all benefits associated with half of the 4% investment tax credits realized have been allo- NMU accounting-tax timing differences have been deferred. | ||
cated to Other income and Deductions, consistent with PSC The approval was subject to the condition that rates the PSC | cated to Other income and Deductions, consistent with PSC The approval was subject to the condition that rates the PSC directives. For the major projects specified in the AFC section will approve in the future will reflect the cost of NMU uranium above, the imputed tax benefit of the borrowed funds com. at the lower of cost or the market price. Subject to PSC ap-ponent of AFC has been credited to Other income and Deduc- proval, the comparison of cost to market will be on an aggre-tions. gate basis over the life of the projen While management | ||
directives. For the major projects specified in the AFC section will approve in the future will reflect the cost of NMU uranium | |||
above, the imputed tax benefit of the borrowed funds com. at the lower of cost or the market price. Subject to PSC ap-ponent of AFC has been credited to Other income and Deduc- proval, the comparison of cost to market will be on an aggre-tions. gate basis over the life of the projen While management | |||
; As directed by the PSC, the Company deferred a portion of believes that such aggregate costs will be less than the the increase in Federal income taxes for the year 1978 as- aggregate market price of the uranium produced over the li's sociated with the tax gain on the sale of a portion of its ird of the project, no such assurance can be given. | ; As directed by the PSC, the Company deferred a portion of believes that such aggregate costs will be less than the the increase in Federal income taxes for the year 1978 as- aggregate market price of the uranium produced over the li's sociated with the tax gain on the sale of a portion of its ird of the project, no such assurance can be given. | ||
terest in the Roseton Steam Station. The PSC authorized the NOTE 4. Short-term Debt and Compensating Balances | terest in the Roseton Steam Station. The PSC authorized the NOTE 4. Short-term Debt and Compensating Balances Company to recover increased taxes through its electric ad-4 justment clause over a one-year period commencing July 1978. tain short-term unsecured loans of up to $250,000,000, in-cluding the issuance of commercial paper equal to the | ||
Company to recover increased taxes through its electric ad-4 justment clause over a one-year period commencing July 1978. tain short-term unsecured loans of up to $250,000,000, in-cluding the issuance of commercial paper equal to the | |||
? Pension Plans: The cost of pension plans is based upon amount of unused bank lines of credit available to the Com-current costs, amortization of unfunded past service benefits pany. At December 31, 1979, the Company had available over penods ranging from 15 to 40 years and amortization $233.500,000 of bank credit arrangements consisting of a over 15 years of unfunded past service benefits arising from $55,000,000 contractual commitment with several banks plan amendments, as determined by consulting actuan.es. | ? Pension Plans: The cost of pension plans is based upon amount of unused bank lines of credit available to the Com-current costs, amortization of unfunded past service benefits pany. At December 31, 1979, the Company had available over penods ranging from 15 to 40 years and amortization $233.500,000 of bank credit arrangements consisting of a over 15 years of unfunded past service benefits arising from $55,000,000 contractual commitment with several banks plan amendments, as determined by consulting actuan.es. | ||
under a Credit Agreement, lines of credit of $103,500,000 and a Bankers Acceptance Facility Agreement of $75,000,0C0. All | under a Credit Agreement, lines of credit of $103,500,000 and a Bankers Acceptance Facility Agreement of $75,000,0C0. All | ||
, NOTE 2. Depreciation of these arrangements are renewable on an annual basis.The The percentage relationship between the total provision for Credit Agreement and most of the lines of credit require the | , NOTE 2. Depreciation of these arrangements are renewable on an annual basis.The The percentage relationship between the total provision for Credit Agreement and most of the lines of credit require the depreciation and average depreciable property was 2.7% in Company to maintain compensating balances which are av-1979,1978 and 1977 and 2.8% in 1976 and 1975. The Com* eraged over time. Net of " float", approximately $5,300,000 of pany makes depreciation studies on a continuing basis and cash at December 31,1979 represented compensating bal-adjusts the rates of its various classes of depreciaele proper- ances. The Company has elected to pay fees in lieu of main-ty, when cor sidered appropriate, subject to PSC approval. taining compensating balances on its other lines of credit. | ||
depreciation and average depreciable property was 2.7% in Company to maintain compensating balances which are av-1979,1978 and 1977 and 2.8% in 1976 and 1975. The Com* eraged over time. Net of " float", approximately $5,300,000 of pany makes depreciation studies on a continuing basis and cash at December 31,1979 represented compensating bal-adjusts the rates of its various classes of depreciaele proper- ances. The Company has elected to pay fees in lieu of main-ty, when cor sidered appropriate, subject to PSC approval. taining compensating balances on its other lines of credit. | |||
Effective December 1,1976, consistent with a PSC rate deci- The Bankers Acceptance Facility Agreement provides for the sion, electric depreciation provisions were modified resultin9 payment of fees only upon the issuance of each acceptance. | Effective December 1,1976, consistent with a PSC rate deci- The Bankers Acceptance Facility Agreement provides for the sion, electric depreciation provisions were modified resultin9 payment of fees only upon the issuance of each acceptance. | ||
in a reduction in depreciation expense of $4,300,000 for the Acceptances are used to finance the fuel oilinventory at one ' | in a reduction in depreciation expense of $4,300,000 for the Acceptances are used to finance the fuel oilinventory at one ' | ||
Line 2,645: | Line 1,683: | ||
Sffective July 1,1978, the electric depreciation provision for On March 6,1979, the Company entered into arrangements 1978 was increased approximately $1,100,000. with Oswego Facilities Trust (OFT) providing for OFT tc finance the acquisition of a fuel oil storage terminal at NOTE 3. N M Uranium. Inc. Oswego, New York and for construction of certain railroac During 1976, through a wholly-owned subsidiary, N M loading and unloading facilities associated with the terminal. | Sffective July 1,1978, the electric depreciation provision for On March 6,1979, the Company entered into arrangements 1978 was increased approximately $1,100,000. with Oswego Facilities Trust (OFT) providing for OFT tc finance the acquisition of a fuel oil storage terminal at NOTE 3. N M Uranium. Inc. Oswego, New York and for construction of certain railroac During 1976, through a wholly-owned subsidiary, N M loading and unloading facilities associated with the terminal. | ||
Uranium, Inc. (NMU), the Company purchased a 50 percent OFT has a $25,000,000 Letter of Credit Facility and Revolving undivided interest in uranium deposits and associated min. Credit Agreement which are used to support its commercial ing equipment to be held by a jointly-owned mining venture. paper obligations. The Company is obligated, under a Dis-The venture is basically an operating arrangement whereby tribution Contract with CFT, to make certain payments for its the Company pays its share o' the capital and operating costs use of these facilities and to purchase, or otherwise arrange l and in turn receives its proportionate share of production. for, the distribution of the facilities upon the termination of Although acquisition of this interest was made primarily to the Trust. The Letter of Credit Facility and Revolving Credit provide a more assured future supply of nuclear fuel for the Agreement of CFT require payment of fees which are basec Nine Mile Point Nuclear Station Uruts #1 and e2, the Com- upon the amount of commercial paper outstanding. | Uranium, Inc. (NMU), the Company purchased a 50 percent OFT has a $25,000,000 Letter of Credit Facility and Revolving undivided interest in uranium deposits and associated min. Credit Agreement which are used to support its commercial ing equipment to be held by a jointly-owned mining venture. paper obligations. The Company is obligated, under a Dis-The venture is basically an operating arrangement whereby tribution Contract with CFT, to make certain payments for its the Company pays its share o' the capital and operating costs use of these facilities and to purchase, or otherwise arrange l and in turn receives its proportionate share of production. for, the distribution of the facilities upon the termination of Although acquisition of this interest was made primarily to the Trust. The Letter of Credit Facility and Revolving Credit provide a more assured future supply of nuclear fuel for the Agreement of CFT require payment of fees which are basec Nine Mile Point Nuclear Station Uruts #1 and e2, the Com- upon the amount of commercial paper outstanding. | ||
20 I | 20 I 1 | ||
i | |||
The following table summarizes additional information 1,600.0C0 shares of $25 par value perferred stock, 8.375% | The following table summarizes additional information 1,600.0C0 shares of $25 par value perferred stock, 8.375% | ||
aopticable to short term deot: senes, and 1,360,000 snares of $25 par value preference in3 rgsanes or ce a s stock, 7.75% series, capital stock expense increased | aopticable to short term deot: senes, and 1,360,000 snares of $25 par value preference in3 rgsanes or ce a s stock, 7.75% series, capital stock expense increased | ||
Line 2,667: | Line 1,699: | ||
par value 10.60% Series The following table reflects the Company's share of Preferred $25 8.375% Series 100.000 April l,1983 jointly-owned generating facilities at December 31,1979. The ar value 9.75% Series 66.000 October 1,1980 Company is required to provide financing for the units in process of construction and for any additions to the Rosaton Preference $25 units. The Company's share of expenses associated with the par value 7.75% Series 140.000 September 30,1980 Roseton units are included in the appropnate operating ex. | par value 10.60% Series The following table reflects the Company's share of Preferred $25 8.375% Series 100.000 April l,1983 jointly-owned generating facilities at December 31,1979. The ar value 9.75% Series 66.000 October 1,1980 Company is required to provide financing for the units in process of construction and for any additions to the Rosaton Preference $25 units. The Company's share of expenses associated with the par value 7.75% Series 140.000 September 30,1980 Roseton units are included in the appropnate operating ex. | ||
pinses in the consolidated statement of income. These series also have optional sinking funds through which the Company may redeem, at par, a like amount of In tnousancs c/ dollars Constructio.) additional shares (limited to 120,000 shares of the 7.45% | pinses in the consolidated statement of income. These series also have optional sinking funds through which the Company may redeem, at par, a like amount of In tnousancs c/ dollars Constructio.) additional shares (limited to 120,000 shares of the 7.45% | ||
Percentage Utihty Accumulated work in senes and 300.000 shares of the 9.75% senes). The manda-ownersn o orari ceoree:ation crogress tory sinking fund for the 7.75% series increases by 20,000 Roseton Steam Station snares and 80.000 shares beginning September 30,1982 and Units # 1 and 2(a) 30 $101,488 $14,213 $ 2.275 1984, resoectively. | Percentage Utihty Accumulated work in senes and 300.000 shares of the 9.75% senes). The manda-ownersn o orari ceoree:ation crogress tory sinking fund for the 7.75% series increases by 20,000 Roseton Steam Station snares and 80.000 shares beginning September 30,1982 and Units # 1 and 2(a) 30 $101,488 $14,213 $ 2.275 1984, resoectively. | ||
Oswego Steam Station The Company's five year mandatory sinking fund redemp-Unit # 6(b) 76 - - | Oswego Steam Station The Company's five year mandatory sinking fund redemp-Unit # 6(b) 76 - - | ||
222.882 tion schedule is as follows: | 222.882 tion schedule is as follows: | ||
Nine Mile Point Nuclear Station Unit #2(D)(d) 41 - - 313,304 Par Thousancs e/ collars Seres vah.e 1980 1981 1982 1983 1984 St:rling Nuclear Station /c)(c) 22 - - 18,962 7.45 % $100 51,800 $1,800 $1.800 5 1,800 $ 1,800 10.60*'. $100 | Nine Mile Point Nuclear Station Unit #2(D)(d) 41 - - 313,304 Par Thousancs e/ collars Seres vah.e 1980 1981 1982 1983 1984 St:rling Nuclear Station /c)(c) 22 - - 18,962 7.45 % $100 51,800 $1,800 $1.800 5 1,800 $ 1,800 10.60*'. $100 2,000 2,000 2,000 2,000 (a) The Cer 'cany sold to Central Hucson Gas arc E ectr c Corecration | ||
: s. of .ts crigirai 40*. owreesnio 'er cock same cf accreximateiy 8 375 % $ 25 - - - 2,500 2,500 | : s. of .ts crigirai 40*. owreesnio 'er cock same cf accreximateiy 8 375 % $ 25 - - - 2,500 2,500 | ||
$30.400 CC0.n Cecomee' 1979 Cer: tral Nucson s ochgatec frem 9.75 % $ 25 1,650 1.650 1,650 1.650 1.650 tee to tee to acquire acc.t:enal cortrocs of :he Ccmcacy s m- 7.75 % $ 25 3.500 3.500 4.000 4.000 6.000 rg 1975. Te Cemeany scid a 24*. nte est in re cwnersnio :f UN | $30.400 CC0.n Cecomee' 1979 Cer: tral Nucson s ochgatec frem 9.75 % $ 25 1,650 1.650 1,650 1.650 1.650 tee to tee to acquire acc.t:enal cortrocs of :he Ccmcacy s m- 7.75 % $ 25 3.500 3.500 4.000 4.000 6.000 rg 1975. Te Cemeany scid a 24*. nte est in re cwnersnio :f UN | ||
Line 2,682: | Line 1,712: | ||
569.500.000 in 1979 and 535,400,000 in 1978 from the sale of Preliminary studies indicate that the estimated amount of un-5.771.766 and 5.057,638 snares of common stoex, respec- funded vested menefits at Cecember 31,1979 exceeded the tively. As a resuit of t,1e foregoing and the 1978 issuance of not assets Of the plans by approximately $104.000.000. | 569.500.000 in 1979 and 535,400,000 in 1978 from the sale of Preliminary studies indicate that the estimated amount of un-5.771.766 and 5.057,638 snares of common stoex, respec- funded vested menefits at Cecember 31,1979 exceeded the tively. As a resuit of t,1e foregoing and the 1978 issuance of not assets Of the plans by approximately $104.000.000. | ||
21 | 21 | ||
a e | a e | ||
l | l Notes to COnschdated Rnat'crat Statemenrs continued NOTE 9. Information Regarding the Electric and Gas Businesses The Company is engaged in t*e electric and gas utility poses. Identifiable assets includes net utility plant, materials businessos. Certain information regarding these segments is and supplies and deferred recoverable energy custs. Corpo. | ||
Notes to COnschdated Rnat'crat Statemenrs continued NOTE 9. Information Regarding the Electric and Gas Businesses The Company is engaged in t*e electric and gas utility poses. Identifiable assets includes net utility plant, materials | |||
businessos. Certain information regarding these segments is and supplies and deferred recoverable energy custs. Corpo. | |||
set forth in the following table. General corporate expenses, rate assets consist of other property and investments, cash. | set forth in the following table. General corporate expenses, rate assets consist of other property and investments, cash. | ||
property common to both segments and depreciation of such accounts receivable, income t&x refund claims, prepayments. | property common to both segments and depreciation of such accounts receivable, income t&x refund claims, prepayments. | ||
Line 2,709: | Line 1,732: | ||
mately $9.000.000 (S.17 per snare), that was no longer subject to a future contingency, was credited to Other income and Net Cperating Loss: During 1977,1976 and 1975, the Com Oeductions. pany utilized for Federal income tax purposes $300,000 22 | mately $9.000.000 (S.17 per snare), that was no longer subject to a future contingency, was credited to Other income and Net Cperating Loss: During 1977,1976 and 1975, the Com Oeductions. pany utilized for Federal income tax purposes $300,000 22 | ||
520,100.000 and $22.600,000, respectively, of net operating and becarne availaole for use.The commercialin service date tr.x ICss carryforwards. of the unit is presently estimated to be in the first quarter of 1980. In his Recommended Decision (issued on December 6 1979) in the Company's current rate case, the Administr_atiye Investment Tax Credits: The Company has deferred the net Law Judge recommended that Oswego Unit #6 investment ben: fit of investment tax credits approximating $15,100.000 tax credit not be recognized in 1979 when such credits would (S.24 per share), 56.900,000(5.12 per snare). S6,100.000 (S.11 normally be recognized under the Company's previously ap-p;r share), $4.800,000 (5.09 per share) and $12.500.000 (S.27 proved Federal income tax accounting policies. Instead, such per share) for the years ended Decemoer 31. 1979, 1978. investment tax credit would be recognized coincident with 1977.1976 and 1975, respectively, in accordance with the the plant being reccgnized for ratemaking purposes. | 520,100.000 and $22.600,000, respectively, of net operating and becarne availaole for use.The commercialin service date tr.x ICss carryforwards. of the unit is presently estimated to be in the first quarter of 1980. In his Recommended Decision (issued on December 6 1979) in the Company's current rate case, the Administr_atiye Investment Tax Credits: The Company has deferred the net Law Judge recommended that Oswego Unit #6 investment ben: fit of investment tax credits approximating $15,100.000 tax credit not be recognized in 1979 when such credits would (S.24 per share), 56.900,000(5.12 per snare). S6,100.000 (S.11 normally be recognized under the Company's previously ap-p;r share), $4.800,000 (5.09 per share) and $12.500.000 (S.27 proved Federal income tax accounting policies. Instead, such per share) for the years ended Decemoer 31. 1979, 1978. investment tax credit would be recognized coincident with 1977.1976 and 1975, respectively, in accordance with the the plant being reccgnized for ratemaking purposes. | ||
g:niral policy as stated in Note 1. Although the Company opposes the Judge's recommenda-The Company has unused credits at December 31,1979 of tion, the Company has deferred the effect of Oswego Unit #6 approximately $19.900.000 which may be utilized to reduce ir vestment tax credit pending final decision of the PSC, ex-curr:nt tax expense in subsequent years until they exoire in pected in early March 1980 The effect of such deferral on the 1986. 1979 results of operations was to increase tax expense and The oil-fired Oswego Unit *6 attained in-service status for thereby decrease income by $6.500.000 (S.10 per snare). The Fsd:ral income tax purposes in late 1979. As a result, invest- Company is unable to predict the ultimate outcome of this m:nt tax credit in the amount of $14.400.000 was generated matter. | g:niral policy as stated in Note 1. Although the Company opposes the Judge's recommenda-The Company has unused credits at December 31,1979 of tion, the Company has deferred the effect of Oswego Unit #6 approximately $19.900.000 which may be utilized to reduce ir vestment tax credit pending final decision of the PSC, ex-curr:nt tax expense in subsequent years until they exoire in pected in early March 1980 The effect of such deferral on the 1986. 1979 results of operations was to increase tax expense and The oil-fired Oswego Unit *6 attained in-service status for thereby decrease income by $6.500.000 (S.10 per snare). The Fsd:ral income tax purposes in late 1979. As a result, invest- Company is unable to predict the ultimate outcome of this m:nt tax credit in the amount of $14.400.000 was generated matter. | ||
Summary Analysis: 1975 1979 1978 1977 1976 Components of Federal and Canadian income taxes Current tax expense: | Summary Analysis: 1975 1979 1978 1977 1976 Components of Federal and Canadian income taxes Current tax expense: | ||
Federal . $ 1,618 $ 7,608 5 434 - - | Federal . $ 1,618 $ 7,608 5 434 - - | ||
Canadian . . 4,680 3.870 3.314 S 2.550 $ 2.830 ' | Canadian . . 4,680 3.870 3.314 S 2.550 $ 2.830 ' | ||
6,296 11,478 3,748 2,550 2,830 0:ferred Federalincome tax expense 20,348 19.645 18.376 15.346 11.800 income taxes included in operating expenses . . . 34,646 31,123 22.124 17,896 14.630 Diferred Federalincome taxes included in Cther income and Ceductions . . . (13,782) (11.690) (5.043) (718) - | 6,296 11,478 3,748 2,550 2,830 0:ferred Federalincome tax expense 20,348 19.645 18.376 15.346 11.800 income taxes included in operating expenses . . . 34,646 31,123 22.124 17,896 14.630 Diferred Federalincome taxes included in Cther income and Ceductions . . . (13,782) (11.690) (5.043) (718) - | ||
Line 2,732: | Line 1,750: | ||
Cepreciation . . 13,329 13.931 19,703 19,741 20,123 Allowance for funds used dunng construction 26,496 21.601 16.389 9.942 14,100 Taxes, pensions and employee benefits capitalized for accounting purposes . . , , 10,202 8.537 7.071 5.731 7.920 Real estate taxes on an assessment date basis . 2,178 560 1,042 2.813 3.035 Investment tax credit . . 2.775 10.874 9.500 - - | Cepreciation . . 13,329 13.931 19,703 19,741 20,123 Allowance for funds used dunng construction 26,496 21.601 16.389 9.942 14,100 Taxes, pensions and employee benefits capitalized for accounting purposes . . , , 10,202 8.537 7.071 5.731 7.920 Real estate taxes on an assessment date basis . 2,178 560 1,042 2.813 3.035 Investment tax credit . . 2.775 10.874 9.500 - - | ||
Income tax refunds .. . . . | Income tax refunds .. . . . | ||
619 4.313 - | 619 4.313 - | ||
0;ferred taxes orovided at other than the statutory rate 6,752 1,824 (7,351) , (5,905) 6.083 Other. (1,224) 326 3.584 6.488 (3.767) 60,508 57.553 50.557 43.123 47.494 Feceral and Canadian inccme taxes . $20,864 $19.433 517.081 $17.179 514.630 23 | 0;ferred taxes orovided at other than the statutory rate 6,752 1,824 (7,351) , (5,905) 6.083 Other. (1,224) 326 3.584 6.488 (3.767) 60,508 57.553 50.557 43.123 47.494 Feceral and Canadian inccme taxes . $20,864 $19.433 517.081 $17.179 514.630 23 | ||
s. | s. | ||
Notes to ConschCated Fnancial Statements cont nued NOTE 11. Supplementary Information to Disclose the Effects of Changing Prices (Unsudited) 2 Continued inflation, resulting in a decline in the purchasing in recognition of the fact that users of financial reports power of the dollar, has become one of our nation's principal need to have an understanding of the effects of Wlation on a concerns. Inflation has an enormous impact on all sectors of business enterprise, the accounting profession's standard the economy, including consumers, wage earners, investors, setting body has issued a statement requiring that inflation government and industry. adjusted data be presented in 1979 annual reports to stock-The consolidated financial statements are based on histor. holders.The following supplementary information is supplied ical events and transactions when the purchasing power of in accordance with the requirements of such statement for the dollar was substantially different than at the present. The the purpose of providing certain information about the ef-eff6 cts of inflation on most utilities. Including Niagara facts of both generalinflation and changes in specific prices. | |||
Notes to ConschCated Fnancial Statements cont nued | Mohawk. are most significant in the areas of depreciation and it should be viewed as an estimate of the approximate effect utility plant and amounts owed on borrowed funds, of inflation, rather than as a precise measure. | ||
NOTE 11. Supplementary Information to Disclose the Effects of Changing Prices (Unsudited) 2 | |||
Continued inflation, resulting in a decline in the purchasing in recognition of the fact that users of financial reports power of the dollar, has become one of our nation's principal need to have an understanding of the effects of Wlation on a concerns. Inflation has an enormous impact on all sectors of business enterprise, the accounting profession's standard the economy, including consumers, wage earners, investors, setting body has issued a statement requiring that inflation government and industry. adjusted data be presented in 1979 annual reports to stock-The consolidated financial statements are based on histor. holders.The following supplementary information is supplied ical events and transactions when the purchasing power of in accordance with the requirements of such statement for the dollar was substantially different than at the present. The the purpose of providing certain information about the ef-eff6 cts of inflation on most utilities. Including Niagara facts of both generalinflation and changes in specific prices. | |||
Mohawk. are most significant in the areas of depreciation and it should be viewed as an estimate of the approximate effect | |||
utility plant and amounts owed on borrowed funds, of inflation, rather than as a precise measure. | |||
' Statement ofincome from continuing operations adjusted for changing prices for the year ended December 31,1979 i In it'ousands of dollars Conventional Cor'stant collar Current cost histor' Cal Cost average 1979 couars averace 1979 collars | ' Statement ofincome from continuing operations adjusted for changing prices for the year ended December 31,1979 i In it'ousands of dollars Conventional Cor'stant collar Current cost histor' Cal Cost average 1979 couars averace 1979 collars | ||
%erating revenues . . .. . . .. $1.516.503 $1.516.503 51,516.503 | %erating revenues . . .. . . .. $1.516.503 $1.516.503 51,516.503 Fuel for electric generation . . . .. 380.101 380.101 380.101 Electricity purchased . ... .. .. .. 159.453 159,453 159.453 Gas purchased . .. . .. . 196.711 196.711 196.711 Cepreciation . . . . . . . .. . 84.212 186.432 242.256 Other operating and maintenance expenses . . . 467.440 467.440 467,440 Federal and Canadian income taxes . .. . .. .. .. . 34.646 34.646 34,646 Interest charges . .. . .. .. . . .. . . 91.279 91.279 91.279 Other income and deductions-net . . (53.369) (53.369) (53.369) 1.360.473 1.462.693 1.518.517 income (loss) from continuing operations (excluding reduction to net recoverable cost) ... ... . . . . . . $ 156.030 5 53.810* $ (2.014) | ||
Fuel for electric generation . . . .. 380.101 380.101 380.101 Electricity purchased . ... .. .. .. 159.453 159,453 159.453 Gas purchased . .. . .. . 196.711 196.711 196.711 Cepreciation . . . . . . . .. . 84.212 186.432 242.256 Other operating and maintenance expenses . . . 467.440 467.440 467,440 Federal and Canadian income taxes . .. . .. .. .. . 34.646 34.646 34,646 Interest charges . .. . .. .. . . .. . . 91.279 91.279 91.279 Other income and deductions-net . . (53.369) (53.369) (53.369) 1.360.473 1.462.693 1.518.517 income (loss) from continuing operations (excluding reduction to net recoverable cost) ... ... . . . . . . $ 156.030 5 53.810* $ (2.014) | |||
Increase in specific prices (current cost) of utility plant held during year" . S 588.420 Reduction to not recoverable cost . . . ... . . S (308.561) (42.609) | Increase in specific prices (current cost) of utility plant held during year" . S 588.420 Reduction to not recoverable cost . . . ... . . S (308.561) (42.609) | ||
Elfeet of increase in general price level . . . .. . (798.548) | Elfeet of increase in general price level . . . .. . (798.548) | ||
Line 2,764: | Line 1,770: | ||
24 l | 24 l | ||
J | J pitnt, stated in terms of constant dollars or current cest, that offset by the gain from the decline in purchasing power of exc:eds the historical cost of plant is not presently recovera- net amounts owed on borrowed funds. Dunng a period of bio in rates as decreciation. and is reflected as a reduction to inflation, holders of monetary assets suffer a toss of general, net recovera le cost. While the ratemaking process gives no purchasing power while holders of monetary liabilitiejLgx-recognition to the current cost of replacing utility plant. perience a gain. The gain from the decline in purchasing btsco on past practices, the Company believes it will be al- power of net amounts owed is primanly attnbutable to the lowed to earn on the increased cost of its net investment sut;,tantial amount of debt whien hcs been used to finance wnsn replacement of facilities actually occurs. utility plant. Since the depreciation on this plant is limited to To property reflect the economics of rate regulation in the the recovery of histencal costs, the Company does not have St tement of income from Continuing Operations, the reduc. the opportunity to realize a holding gain on debt and is lim-tion of net utility plant to net recoverable cost should be ited to recovery only of the embedded cost of debt capital. | ||
pitnt, stated in terms of constant dollars or current cest, that offset by the gain from the decline in purchasing power of exc:eds the historical cost of plant is not presently recovera- net amounts owed on borrowed funds. Dunng a period of bio in rates as decreciation. and is reflected as a reduction to inflation, holders of monetary assets suffer a toss of general, net recovera le cost. While the ratemaking process gives no purchasing power while holders of monetary liabilitiejLgx-recognition to the current cost of replacing utility plant. perience a gain. The gain from the decline in purchasing btsco on past practices, the Company believes it will be al- power of net amounts owed is primanly attnbutable to the lowed to earn on the increased cost of its net investment sut;,tantial amount of debt whien hcs been used to finance wnsn replacement of facilities actually occurs. utility plant. Since the depreciation on this plant is limited to To property reflect the economics of rate regulation in the the recovery of histencal costs, the Company does not have St tement of income from Continuing Operations, the reduc. the opportunity to realize a holding gain on debt and is lim-tion of net utility plant to net recoverable cost should be ited to recovery only of the embedded cost of debt capital. | |||
Flvo year comparison of selected supplementary financial data adjusted for effects of changing prices | Flvo year comparison of selected supplementary financial data adjusted for effects of changing prices | ||
!n mcusanos ciaverage 1979 :caars Years ercec Cecemce 31. 1973 5373 1977 1976 1975 Cosrating revenues . . , $1,516.503 51,425.046 $1.468,972 $1,374,179 51,311,754 Hl:torical cost information adjusted for generalinflation income (loss) from continuing operations (excluding reduction to net recoverable cost) . . S 53.810 income (toss) per common share (after dividend require-ments on preferred stock and excluding reduction to net recoverable cost) . . S 0.41 Nst assets at year-end at net recoverable cost $1.304.929 Current cost information income (loss) from continuing operations (excluding reduction to net recoverable cost) . S (2,014) | !n mcusanos ciaverage 1979 :caars Years ercec Cecemce 31. 1973 5373 1977 1976 1975 Cosrating revenues . . , $1,516.503 51,425.046 $1.468,972 $1,374,179 51,311,754 Hl:torical cost information adjusted for generalinflation income (loss) from continuing operations (excluding reduction to net recoverable cost) . . S 53.810 income (toss) per common share (after dividend require-ments on preferred stock and excluding reduction to net recoverable cost) . . S 0.41 Nst assets at year-end at net recoverable cost $1.304.929 Current cost information income (loss) from continuing operations (excluding reduction to net recoverable cost) . S (2,014) | ||
Line 2,776: | Line 1,779: | ||
31, 1979. the Company's c:st associated with tne Sterling increase in ecst based on the new construction senedule. | 31, 1979. the Company's c:st associated with tne Sterling increase in ecst based on the new construction senedule. | ||
25 | 25 | ||
~ ,e,, Cmoecategnanc,a, s,a,eme,,s c_e, | ~ ,e,, Cmoecategnanc,a, s,a,eme,,s c_e, | ||
Line 2,786: | Line 1,785: | ||
OF UTILITY PLANT l Liti*ation: Several electric customers have brought suit to tacusancs of collars agai,ist the Company and the Power Authonty of the State of *# # | OF UTILITY PLANT l Liti*ation: Several electric customers have brought suit to tacusancs of collars agai,ist the Company and the Power Authonty of the State of *# # | ||
Utility plant *- | Utility plant *- | ||
New York (PASNY) requesting that certain power purchased | New York (PASNY) requesting that certain power purchased from PASNY be allocated exclusively for their benefit and are Electric plant $2,859,533_, [ $2.680,99t I asking monetary damages for the difference between rates Nuclear fuel (Note 3) . .. 206,206 5 215,20' charged by the Company and rates that would otherwise have Gas plant . 367,652 9 350,021 been charged if this power had been furnished to them over Common plant . 63,920 1 59,72r the past six years. In the opinion of management, the ultimate Construction work in progress 721,217 17 599.41: | ||
from PASNY be allocated exclusively for their benefit and are Electric plant $2,859,533_, [ $2.680,99t I asking monetary damages for the difference between rates Nuclear fuel (Note 3) . .. 206,206 5 215,20' | |||
charged by the Company and rates that would otherwise have Gas plant . 367,652 9 350,021 been charged if this power had been furnished to them over Common plant . 63,920 1 59,72r the past six years. In the opinion of management, the ultimate Construction work in progress 721,217 17 599.41: | |||
liability, if any, resulting from this suit will not materially af. | liability, if any, resulting from this suit will not materially af. | ||
Totat utility plant . 34,218,528 100 $3,905,37 fect the consolidated financial statements of the Company. | Totat utility plant . 34,218,528 100 $3,905,37 fect the consolidated financial statements of the Company. | ||
Line 2,799: | Line 1,794: | ||
contesting it. The recommended adjustment results from the 12.6% Senes due October 1,1981 125,000 125,00( | contesting it. The recommended adjustment results from the 12.6% Senes due October 1,1981 125,000 125,00( | ||
FERC staff taking exception to regulatory accounting treat- 3%% Series due December 1,1981 15,000 15,00( | FERC staff taking exception to regulatory accounting treat- 3%% Series due December 1,1981 15,000 15,00( | ||
ment prescribed by the PSC, the Company's primary rate set. 3%% Series due February 1,1983 25,000 25,00( | ment prescribed by the PSC, the Company's primary rate set. 3%% Series due February 1,1983 25,000 25,00( | ||
ting body. Although FERC has ratemaking junsdic. tion over 3%% Series due October 1,1983 . 40,000 40,00( | ting body. Although FERC has ratemaking junsdic. tion over 3%% Series due October 1,1983 . 40,000 40,00( | ||
Line 2,832: | Line 1,826: | ||
1978 $276,442 $37,571 $27,273 S.32 Prime rate plus W% (not to exceed 7%%) due in eoual quarterly instail-1979 $352.107 550,114 $41,878 ents thmgh Apnl1, M80 H,250 13,75 S.56 1978 5309,666 $47,976 S35.527 S.49 - Unamortized oremium 6,256 6.69' al ng n . . 1, 31, 425 M March 31 ss lo@erm deme wWn one war 88,5M M,4 l 1979 S412.386 $67,492 $60.636 S.86 31,443,056 51.414.99-l 1978 5372,352 $64.945 $51,385 S.78 26 | 1978 $276,442 $37,571 $27,273 S.32 Prime rate plus W% (not to exceed 7%%) due in eoual quarterly instail-1979 $352.107 550,114 $41,878 ents thmgh Apnl1, M80 H,250 13,75 S.56 1978 5309,666 $47,976 S35.527 S.49 - Unamortized oremium 6,256 6.69' al ng n . . 1, 31, 425 M March 31 ss lo@erm deme wWn one war 88,5M M,4 l 1979 S412.386 $67,492 $60.636 S.86 31,443,056 51.414.99-l 1978 5372,352 $64.945 $51,385 S.78 26 | ||
a PREFERRED STOCK Cumulative preferred stock. autnonzed 3,400.000 snares. 5100 par value and 9,600.000 snares. 525 par value Cumulative preference stock, authorized 4.000.000 shares. 525 pst value necerction cree ce sea a --- | |||
a | |||
PREFERRED STOCK Cumulative preferred stock. autnonzed 3,400.000 snares. 5100 par value and 9,600.000 snares. 525 par value Cumulative preference stock, authorized 4.000.000 shares. 525 pst value necerction cree ce sea a --- | |||
'n iPousar'Qs of dotsa's (Ge'cre a:Cinq acc muisted 5tvecends) - . . | 'n iPousar'Qs of dotsa's (Ge'cre a:Cinq acc muisted 5tvecends) - . . | ||
At Cecerter 31, 1979 1973 December 31,1979 Lentuai Non-redeema ble (optionally rede emable) V'" *"m Preferred $100 par value 3.40*'. Senes: 200.000 shares . . $ 20,000 $ 20.000 $103.50 $103.50 3.60% Series; 350,000 shares . 35,000 35.000 104.85 104.85 3.90% Senes: 240.000 shares . 24,000 24.000 103.00 106.00 4.10% Senes: 210.000 shares . 21,000 21,000 102.00 102.00 4 85% Senes; 250.000 shares . 25,000 25.000 102.00 102.00 5.25% Senes: 200.000 shares . . 20,000 20.000 102.00 102.00 6.10% Senes; 250,000 snares . 25,000 25,000 103.00 101.00 7.72% Series; 400.000 shares . 40,000 40.000 107.37 102.36 5210,000 $210.000 R edeem able (ma ndatorily redeem able-Note 7) | At Cecerter 31, 1979 1973 December 31,1979 Lentuai Non-redeema ble (optionally rede emable) V'" *"m Preferred $100 par value 3.40*'. Senes: 200.000 shares . . $ 20,000 $ 20.000 $103.50 $103.50 3.60% Series; 350,000 shares . 35,000 35.000 104.85 104.85 3.90% Senes: 240.000 shares . 24,000 24.000 103.00 106.00 4.10% Senes: 210.000 shares . 21,000 21,000 102.00 102.00 4 85% Senes; 250.000 shares . 25,000 25.000 102.00 102.00 5.25% Senes: 200.000 shares . . 20,000 20.000 102.00 102.00 6.10% Senes; 250,000 snares . 25,000 25,000 103.00 101.00 7.72% Series; 400.000 shares . 40,000 40.000 107.37 102.36 5210,000 $210.000 R edeem able (ma ndatorily redeem able-Note 7) | ||
Line 2,841: | Line 1,832: | ||
* 25.00 196,600 200.400 Less sinking fund requirements .... ... .. .. 6,950 1.800 | * 25.00 196,600 200.400 Less sinking fund requirements .... ... .. .. 6,950 1.800 | ||
$189,650 $198.600 | $189,650 $198.600 | ||
*'ict re:ee'racie ut~rd Cct cer 1.1981 | *'ict re:ee'racie ut~rd Cct cer 1.1981 FINANCIAL STATISTICS 1979 1979 Capitalization ratios: | ||
FINANCIAL STATISTICS 1979 1979 Capitalization ratios: | |||
Common stock equity . 39.0% 36.9*b Preferred stock . 13.2 14.1 Long-term deot . 47.8 49.0 Ratio of earnings to fixed charges . 2.61 2.58 Ratio of earnings to fixed charges and preferred stock dividends . 2.03 1.95 Other ratios-% of operating revenues: | Common stock equity . 39.0% 36.9*b Preferred stock . 13.2 14.1 Long-term deot . 47.8 49.0 Ratio of earnings to fixed charges . 2.61 2.58 Ratio of earnings to fixed charges and preferred stock dividends . 2.03 1.95 Other ratios-% of operating revenues: | ||
Maintenance and depreciation . 12.1 12.6 Taxes. 13.3 14.3 Coerating income 12.3 14.4 Salance availacte for common stock 8.5 8.8 Ratio of depreciation reserve to gross utility plant 26.3% 26.2% | Maintenance and depreciation . 12.1 12.6 Taxes. 13.3 14.3 Coerating income 12.3 14.4 Salance availacte for common stock 8.5 8.8 Ratio of depreciation reserve to gross utility plant 26.3% 26.2% | ||
Line 2,850: | Line 1,839: | ||
a a | a a | ||
ELECTRIC AND GAS STATISTICS Electric capability 1979 1978 Thousancs ctknowa:ts Electric sales (Minoces of kw-trs.) | ELECTRIC AND GAS STATISTICS Electric capability 1979 1978 Thousancs ctknowa:ts Electric sales (Minoces of kw-trs.) | ||
Thermal At ,lanuary 1 1980 % 1979 Residential 8,269 8.127 Coal /uel Commercial 9,279 - - - 9,117 Hunt.ey, Niagara River 785 11 785 Industrial . 12,474-- 12.187 Dunkirk, Lake Erie . 585 8 585 Municipal service 276 | Thermal At ,lanuary 1 1980 % 1979 Residential 8,269 8.127 Coal /uel Commercial 9,279 - - - 9,117 Hunt.ey, Niagara River 785 11 785 Industrial . 12,474-- 12.187 Dunkirk, Lake Erie . 585 8 585 Municipal service 276 274 Totalcoal fuel 1,370 19 1.370 Other electric systems 3,022 2.675 Residualoil fuel 33,315 32,382 Albany, Hudson River 400 6 400 Oswego, Lake Ontario . 1,200 17 1.190 Eleetdc revenues (Thousancs of cenars) | ||
274 Totalcoal fuel 1,370 19 1.370 Other electric systems 3,022 2.675 Residualoil fuel 33,315 32,382 Albany, Hudson River 400 6 400 Oswego, Lake Ontario . 1,200 17 1.190 Eleetdc revenues (Thousancs of cenars) | |||
Roseton, Hudson River . 360 5 360 Residential . .S 357,818 $ 319,667 Commercial 393,173 333,862 Middle distillate oil fuel Industrial . 312,833 258.649 20 Combustion turbine and diesel units . 354 5 354 Municipal service 23,832 21,515 Total oil fuel . 2,314 33 2,304 Other electnc systems 83,188 59.445 Nuclear fuel Miscellaneous 40,224 27,175 Nine Mile Point, Lake Ontario . 610 9 610 | Roseton, Hudson River . 360 5 360 Residential . .S 357,818 $ 319,667 Commercial 393,173 333,862 Middle distillate oil fuel Industrial . 312,833 258.649 20 Combustion turbine and diesel units . 354 5 354 Municipal service 23,832 21,515 Total oil fuel . 2,314 33 2,304 Other electnc systems 83,188 59.445 Nuclear fuel Miscellaneous 40,224 27,175 Nine Mile Point, Lake Ontario . 610 9 610 | ||
$1,211,V., 51,020.313 Purchased-firm contract Power Authority- Electric customers (Average) | $1,211,V., 51,020.313 Purchased-firm contract Power Authority- Electric customers (Average) | ||
Line 2,870: | Line 1,856: | ||
l | l | ||
6 | 6 e | ||
e | |||
)FFICERS DIRECTORS loh3 G. Haeht. Jr. James Bartlett BOARD CCMMITTEES | )FFICERS DIRECTORS loh3 G. Haeht. Jr. James Bartlett BOARD CCMMITTEES | ||
'resicent and Chief Executive Cfficer Executive Vice President. Syracuse | 'resicent and Chief Executive Cfficer Executive Vice President. Syracuse | ||
Line 2,902: | Line 1,886: | ||
'crold J. Sogan sssistInt Secretary oseoh F. Cleary ssistant Secretary-Eastern Civision rederick C. McCall 34tt'nt Secretary-Westem Civision kr:rsc as cf Cec 3f. !979 29 | 'crold J. Sogan sssistInt Secretary oseoh F. Cleary ssistant Secretary-Eastern Civision rederick C. McCall 34tt'nt Secretary-Westem Civision kr:rsc as cf Cec 3f. !979 29 | ||
4 | 4 300 ERIE SCULEVA AC AEST Sv AACUSE. NEW YC Ak 13202 l | ||
300 ERIE SCULEVA AC AEST Sv AACUSE. NEW YC Ak 13202 l | |||
l l | l l | ||
Whiteface Mountain and other rugged .AdirondacK Oeaks nse in distance as Niagara Vohawk tine mechanic works on new 115.000-voit hne oudt to meet energy demands of 1980 Olymcic Winter Games at Laxe P!ac:d. Construction of 10-mile circuit. | l Whiteface Mountain and other rugged .AdirondacK Oeaks nse in distance as Niagara Vohawk tine mechanic works on new 115.000-voit hne oudt to meet energy demands of 1980 Olymcic Winter Games at Laxe P!ac:d. Construction of 10-mile circuit. | ||
achieved in only a 'ew months time, was termed 'scectacular accomphshment ' in l report by N.Y. State Puche Service Commission. | achieved in only a 'ew months time, was termed 'scectacular accomphshment ' in l report by N.Y. State Puche Service Commission. | ||
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Latest revision as of 03:25, 16 March 2020
ML19323E016 | |
Person / Time | |
---|---|
Site: | Nine Mile Point, 05000516, 05000517, Shoreham ![]() |
Issue date: | 05/19/1980 |
From: | LONG ISLAND LIGHTING CO. |
To: | |
Shared Package | |
ML17053B655 | List: |
References | |
NUDOCS 8005220648 | |
Download: ML19323E016 (71) | |
Text
.
g v i 1979 Highlights
?
Percent increase 1979 1978 or (Decrease)
Eamings Per Share cecreased 30. $2.41 32.44 .12A Annual Dividend Rate en common stcck increasec 30 ~
- n .:une t979. $1.78 St.70 &
Eiectnc and gas rates .ncreased 326 0 motion arc $16 6 rniken, rescect:vety. en an anrual casis, eMect:ve May J.1979. Acc:t.cnal amounts total:ng S6 9 miikcn annua'ly. feec January 25.1920. crimamy te cr' set mgrer precerty ta.xes. cecame ef+ective Fetruary S.1950 E ectric rate increase acchcat:en for $25.6 mclion,or 2 5%,
annua 4y filed Septemcer 21.1979.
Fuel Oil Consumed fcr L!LCO system e:ectnc energy recu:rements ecuced cv 7 5 Ncn carrets. saving customers $42 mnen. 15.3 22.3 f 32 7)
Total Revenues exceeced cne criben ccilars. $1.05 50.90 16.3 Equity of Owners of Common Stock exceecec cne ciiiicn ccitars $1.14 50 98 15.7 Total Electric System kWh Sales up 30 mden kWh 12,467 12.437 02 Number of Gas Space Heating Customers at Yeat End .ncreased 5.600. 161,000 155.400 36 Total System Sales of Gas uol 6 ci! lien cucic feet. 43.6 42.0 3.3 Total Capital Requirements up 550 3 mdlion. $466.1 S415a 12.1 Permaneni Financing $312.7 m:ihen. up 5112.3 million. $312.7 5199 9 56.4 Tri-Counties Resources and Construction Trusts prev cec an accaticnaltctal cf $97.7 mecn in 1979 $97.7 5111.4 (12.3)
Eamings and Dividends
'Cocars cer spare >
$3 00 2 50 r.amess /
persnareg/ /
2 00 1 50 1 00
%ca*ed anross diwdend rare at year.or4 0 50 I
l 3 Sa 55 70 ?! *)
LlLCO's earnings per common share have been increased in 17 of the last 21 years.
The dividend rate on the common stock has been raised in atl but one of these 21 years.
1 80052ga
4 To Our Shsreholdsrs By any measure 1979 was a tota'ing $6.9 million to ccver Ngner year end.The cuik cf these acc:tions difficult time that tested the strengths property taxes nave ceccme effective cccurred in tre last cuarter of 1979 with and rescurces cf all Amencar s. it was in Fecruary 1980. The histencally hign only a small effect on 1979 sates. The a year unen the senous energy succty inflationary pressures on the censumer interest :n gas is excected dis:ccations and intense inflationary Company's cceratirg costs and to cent:nue into 1980 stimulated by J pressures which marked the 1970's cacital financ:rg program continue, continued increases in cil onces,..
decade reached the:r most cr:tical however, to outpace tne response of Sales of eiectnc:ty and gas fccbeating
'evet. Despite these unfavoracle the regulatory process in crovicing purposes areescec: ally teneficialto
- external conc
- t.cns. the re!iaciiity of appropnate financ:al relief. As a ccth eamings and statibty cf customer j gas and efectr:c service to LILCO consequence, the Comcany fincs .t rates cecause of the smallincremental
- customers remains largefy unaf'ected necessary to accly for adctional rate capttal investment required when the i but ,ts cost, as with all energy forms has aciustments on a regunr basis to customer airaacy has gas and elecinc l - continued to increase. Meaningful compensate for the pers;stently service for general purposes.
! *progress continues to te made in cur growing cost burdens created by 1979 also marked the Centennial efforts to lessen cur community's today's economic environment. in this year of Edison's invention of the decendence en fere gn oil the single regard, an acclicat:en to increase ir.cancescent e!ectne lignt. This most important fac*ar ccetnbuting to electnc rates by $25.6 million was filed remarkable achevement is an tecay's ecencmir, cifficulties. this past Sectemcer witn the accreenate reminder cf the many income for the commen stock rose excectation that an increase will ways that electnc:ty is cacacle of to $128 8 millier vom S111.3 millien in beceme effective no later than May contncut;ng to human prcgress. This 1978. but w;th e 16.9 % increase in the 1980. Another rate filing for an thcugnt :s particularty nctewortny numcer of aver age common shares increase to teccme effective in 101 today as e!ectrie:ty seems destined to outstancing,the earnings per share seems inevitatie. play a maict role in our nat:enal effort cechned skgntly l rom $2.44 in 1978 to Sales of electnc:ty and gas to ULCO to recuce reliance on foreign energy
$2.41 in 1979. In JL ne 1979, the customers in 1979 shewed slight supplies. E! ectr:c:ty's verrat:hty annual dividend rata on the ccmmen growth over the previcus year. provides a matenless cccertunity to stock was raised 8e to $1.78 per share. reffecting the effects of mild weather sutstitute the use of many other Thts is the 20tn increae over the last and lasting energy Conservation. energy fcrms for cil. Through 21 years. Consumer react:en to scanng neating conversion to electric:ty, all of today's Earr.ings benefited from the $26.0 oil pnces indicates, however, tnat mere dcmestic fuels -ccal. gas, and mathen electric and $16.6 million gas favoracle sales results in the heating nuclear -can be made conveniently rate increases which went into effect area can te antic: pated in 1980. More availacle for res;dential, business, and n May 1979. As cart of the Puche than 27.000 customers acclied for gas transportation use. In add:tien, future Serece Commission's ruling in that heating service in 1979. with 5.600 technolcgies such as solar energy can rate case adctionalit creases space neating customers added by e:ther ce converted to electne:ty I
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Cheries R. Pierce Wilfred O. Uhl Cr. airman of the Board and President Chief Executive Ctftcer 2
or usec as a suppiement for heat.ng we are in agreement wrth Presicent stronger.n tne years aread purposes. Carter's assessment that r uc! ear !t has always teen the case that A num7er of L!LCO prcgrams are power is necessary :f cur nation's vital planning and operating Our gas and aimed at taking advar tage cf this energy neecs are to ce met. electric systems for acnievement of versat:lity through the ceveiceme .t r f The fact is that the enty estions acecuate, renacle, anc economical e!ectnc venic:es. heat cumes, and availdele to Long Island electne service has hac to vary
- rem wnat.we solar energy orciects. The:r pract: cal censumers in tneir quest for sucstartral would regarc as the cetimum tecause acciicat:en in the years ahead will relief frem oil decencence are ccal cr of theimcact of govemment regulation mean a significant cecrease ;n nuclear. LILCO has closelyinvestigated in vanous forms. Because of the petroleum consumpt:cn. The role of these cctions ever the years as part of cuantum leacs cf government :nterven.
efectnc:ty in Long Islands total energy tne cec:sion mak:ng process for the tien and oversigrt at every !evel, the mix woutc. in tum. te expected to grow Shoreham and Jamesecrt clants. and ceviations from tr at optimum have net larger. lc the meantime etectnc:ty's in response to the Feceral Decartment only teccme greater, but t.end to move versatility is providing more immeciate cf Energy's orcers fer the convers:en in many c:rectices at once. Acerocnate cenefits. L LCO's acit,ty to impcrt to ccal of a numcer of the Company's rescenses to these acced irnced:ments energy supplies from nuc! ear, coal, existing cil turning generating units. to crcerly management and cperaticn
- and nycro sources in the form of The resu;ts of these;nvestigations of cur system have recutred even j
electnc curenases from netgncenng cemenstrate to cur sat:staction that greater acclication cf initiative and utiht:es and the acil.ty to cum natural nuclear energy is eteaner, safer, and cec ceSen frcm cur fellow empicyees in gas at three L;LCO ccwer plants mere eccnomicalthan c0at. However, every part Of the cr;ar ization, and we saved mere than 7.5 maitien carre's cf the fact that cur censumer gratefully acknowiecge this furtner
, cet and $42 motion for Long Island const.tuency is nct sucstantiaily manifesta!:en of the value and imper.
1 ccrsumers last year. convinced cf these facts s evidenced tance cf eacn.
The use of nue: ear power rema.ns, !:y the recent act:ces of the New Ycrk newever, the test cccertun:ty to State S. ting Board for Jamesport in
'essen Long Islanc's neavy reliance en unanimously vcting to license a coal- I oil. Intrccuction cf nuclear energy into fired. rather than a nuc! ear plant. While the LILCO system will net only provice the coal alternative w!Il result in higher ,
meaningful relief from continuaily electne energy costs than a corre-esca:at;ng CPEC pnces. but will fumisn socnding nuctear plant. coal is still ^f - - @^^-- 1 a vaivacle measure of fuel supply sutstantially mere attractive than en.6, men and Chief Executive Cfficer secunty net available througn continued rehance en cil, from teth an cepencence cn fereign-basec econcmic and reliacility stancpcint. The petrefeum. Unfortunately, the cay Long Island community and the nation -
wren that relief will amve for our as a whole seem to be severalyears ;
cusicmers. with the cceratien cf the away from recogniz:rg the nuclear a Sncrenam Nuc! ear Power Station, has advantage. A centinuation of the W '
ceen ce!ayed until 1981. This celay struggle fer a nuc! ear plant at resu.ts from the civersten of the Jamesport will further ce!ay the cay p ,,,,,,
t Nuclear Regulatory Ccmmission when LILCO's oil cecendence can be
! (NRC) staff frcm .ts regular !icensing recuced. and the cacac:ty dut;es to the NRC's safety review cf requirements of our partner utility can the Three Mile Islanc incicent. At this te met from this fac:lity. However, the time. we cannet predict wnen licensing cec:sion of the sting board has cet eli resume, but hocefu!!y .t will be teen fully develocec as of this wr.tng.
cuick enougn to insure Shcreham When it is issued. a full assessment of ccerat;cn some time in 1981. The ts impact will be mace by the ceday n heensing is af+ecting the initial ccmcanies and reported promptly.
oceration of at least eight nuciear it is quite evicent that electric:ty, and plants cat:cnwice and is creating to a smal!er cegree natural gas, wiil nuncrecs cf millices of cct!ars in have to fill greater roles in cur acc.tenalinterest costs and is caus:ng econcmy's energy mix if the foreign oil the .r ccrtation of millicns of carrels of dilemma is to te resolved. In acc. ten acc.tena! cil. to conservation efforts arc measures in regarc to the investigat:cns of the toincrease ccmest:c petroleum Three MJe Island events, we have succlies. a majer switch from cil Icckec very c!cse!y at the f nc:rgs of tne ccrsumcticn to cther energy 'crms ,s l' P'es, dent's Kemeny Commission. The required for successful resctution. No nuctear incustry nas resconced in a cther energy form has elect :c:ty's time'y anc pcstve manner to the unique capac:ty to perform this task.
Ccmm:ssion's safety reccmmenca- The Shcrenam and Jamesecrt P' ants tices. L:LCO has also pledged to anc the vancus ceveicceent orciects i
- melement the Commissica s recem- we cesente in this Recert are the mencations as they accry to the resuts of LILCO's planning in this Ccmcany's coerat
- cns. As a cense- regarc. Prcgrams sucn as these. we ,
cuence. we cetieve that nuciear energy, ceneve. are in accord w:th our nat:enal l wn:en has an enviacle safetf eecen- ecencmic anc scc:al goals and will '
ence record. can ce mace sa:er still anc work to make L!LCO anc Long isf ace 3
Encrgy Nesds Reducing Reliance on Oli I In 1979 tne reahties of an uncertain CCst of gaschne. neatng cil and The keystone of the ef' ort to I wortd energy succly were ence rrcre electnc:ty.They are also concerned irrcrove me energy sucply picture is
! brougntto tre cocrstec cf ne Amencan a0 cut the future avar!acihty cf these the recucten of tne overwnetming role censumer Gaschnelines c:csed energy suppnes at any once. tnat cil plays in meet:ng tne nat:en s anti service stat: ens. and skyrocketing In 1979. Long Islancers locxed more Long is:anc's energy needs. Cnly in tnis heatng c:1 pnces were c: ear remincers c:csery than ever for new ways to meet way can me econernic strangiencid of cf our naten's precancus decencence tre:r energy neecs. LILCO intensif ed the OPEC nat: ens on our countryhe on fore'gn cil. its erfcris :o meet the cnanging nature of eliminated. Three basic e*fcris are
! Tre Unitec States' fcreign oil these censumer neecs and to rescend recuired to meet this goal. They are deoendence has grown so extreme to the ensis in the worta energy situat:co. (1)sucst tut en of cmer fuel forms for that the stigntest tremer in the imocrt cil. (2) comeste energy suppfy succty network can cause massive enhancement, and (3) the conservaten pclitical and economic d:siocaDons. and efficient use of energy.
While there is mdesoread recognition The mostef'ectvemeasure availabie i
of the need to reduce tnis decendence, to lessen Long Island's reliance on oil i scec:fic federal eregrams to eff ect re!ief is a shift frem petreleum fuel to nuclear. :
I remain absent. Our country continues Under L:LCO's clans.whien inc!uded 1 to te locked into an er'ergy policy mat the Comcany's 50% snare of the two '
the Arab cil emtargo execsed as haz- recently cenied nuc! ear units at arcous mere inan s:x years ago. Tccay Jamesccrt, about 70c6 of system-me United States is mere vulnerable generated efecinc:ty would have been than ever before. mpcrtng caity accut produced by nuc! ear power plants in t.vo-and-one-na:t ames as mucn me early 1990's. This would have re. ;
foreign oil as on 1970. duced Long Island's reliance en residual oil by mere inan 20 million barrels a year I This vulneracikty is particularly
- prcncunced in the Nortneast. Long -a volume greater man all the home heatng cil that is now bumed for resi-
~
Istand's energy supply, for example. is tased almost completely en cil. Some dential space heating in the entire SC% cf the hcmes in theNassau-Suffolk LILCO service area. The Shoreham area are heated by oil. Nearly all cf the Nuclear Power Station alone will i electnc:ty generated oy LILCO power cisplace eight m ll;cn barrels of residual i stat:cns .s creduced by burning oil. Long oil annually.
l Island consumers as a consequence, Another measure, which gained in-
- nave been partcularly hard hit by creasing attenten during 1979, was scanng oil pnces as evidenced in the the pcssibility of convernng certain l
Average Cost per Gallon of Fuel Oil v - ,
l for Home Heating on Long Island ica.i m ercanom 7
_ me N 'M '
Sourcs..fournal of Commerce -
7 . EL 1 cady Petroseum Pnces at W' voar-Er'o ]' - I )
315
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$9 71 71 75 7' 7 ,
The average price of home heating cel on _--
Long Island increased by 3ae per gallon, or -
60 in 1979. Thts one-y eer increase is almost .
as great as the 384 per gallon rise over the previous nine year pened 19691978.
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Hours of waiting.The return of the gasoline line, ocs-wven buying days, purchase limits. and skyrocketing p* ices forced the Americam consumer facedo-face, and bumper-to-bumper, with the natloffs precarious dependencs on foreign oil.
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existng e ectrC generatng statens to Aere wa ting en !cng ! ires to Oay mere l 00a1 'r0m cil, and tre COnstruc!1Cn Of ! nan a 001!ar a gal:Cn ICr gasciine.
rew coal-hred un:ts in tre evert trat Prices were acvanc:ng at a rate that l
procesed nuclear units were not mace .! only a matter cf time cefore t e l j actncnzed. ecl:ar-a-ga:Icn !evel wculc ce reacnec !
LILCO nas aisc t:een tamng emer fcr nome neatrg cd as well. Ccm-ste s t0 lessen cd use. Interconnec- pouncing tre ence situaton was tre -
I- tiens with re:gn0cr.ng ut!ity systems uncertainty cf su p'y Many con- - - -
anow tre CCmpany !c setsttute surners were c0ccemed whetrer -
l
- 'cwer-cost cower ereratec off adecuate heatng cd secches would te l Long Island. LILCd's cacachty to avada le througncut the 1979-1950
- excnarge pcwer with cther uthtes was winter. Faced with these ccutts. mcre mera man deutled with the ccmcletien and mere peop:e turred to naturalgas i
- n : ate 1978 cf the LILCO/Censciidated as a waY to prciect themseives from the Th * '*d * * * " t h' *h * b*" '" d'**'* *
- the actual barrels of od consumed by LILCQ
- t;c
- sen .CIOfte. Uth t"O rew ' Ink piaytng grcWICQ cd suCCly Crun0h, arid the in its plants to generate electrfetty for its l a ma;Cr r0fe. 3 5 tdhen <Wh of ocwer nstaifaticn of electr:c heat pumps system recuirements for the years 1969-j Nas Our0nased from CIPer utlites in irCreased in PCCularty. 1979 and the estimates for 1980-1984. The 1979 A saving Of $34 mdien was light blue area indicates the additional od
!. consumouen required it the Company j
reated for L:LCvncustomers as a result were not anie to subsutute power cf trese 1979curcrases. Accr0x- purchand from other uunun or to use ctner i
. mate!y 45% ofInis ccwer was produced 'ue's to generat. eiectricity on its system. 1 by coal-fired clants. 20% by hycro- Th' d*'t biue area represents the barre #s of od to be saved through generation of electnC installatlCns,1C4h Oy MLC! ear electricity with nuclew fuel at the shoreham CCWer statCns, and only 25% cy ed- Nuclur Power stadon.
' Ired plants. The Ocwer sur.;stituted The chart sho us that in 1979, by burnmg reduced LILCO's need !c curn cil by naturni ga primansy obtained under specias some 5 7 mdlion carrets. !n acc; ten,the cor: tracts and by purchasing economy Ccr pany was at:le to ceta:n scecial p***' from oth*' utiitties. Litco reduced fuel oil consumption for its system require-na! ural gas su,,,,ly o Centracts te replace menta by 7.5 mdtion barrets, or 33%
tre use cf fuel cd. The use of natural The resultant savings of s42 million were gas saved 18 mdlion Carrels Cf very pused directly to customers through their rign-pr:Ced. :cw sulfur Cil and reduced bills. It also shows that through the un of nuctor fuel, and the subsutudon of s'eO!riC:ty CCsts Ic Customers bY an purchased power and other fuels. LILCO's adc:tCral $8 mdlion. consumpdon of oH in the urty 1980's wlH be LCrg Island Consumers, meanwhde, reduced about 40* below the level that i would be required if allthe Company's electric system requirements were produced entirely by burrung oil
. . . . .m- - , .1 . . . . . . . ' Oil Consumed 8 b. h s i.i 4 (WhCes C* Sarre si
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Hyortsta9c testing of the shoref'am Nucteer power station's reactor vesset and assocfstod p19:39 was suCCe9sfully corrpleted in september 1979. An esample of the care that is a regular part of nuclest plant construction, this important mdestone tested the integrity of the reactor at l'reeeuret far aoove those to be espertenced during the piant's operation.
5
Electric En:;rgy's Vcrsatility In tms ame cf fuel scarc ty,me role of peak erectricty will be used as a resuit that cf us:ng cil heat. This ccmcettne eiectncty in our economy s energy mix cf th:s cartnersn:o arrangement. cost. ccmcined with electnc heat s can t:e excected to grow larger. !f ~he L!LCO Scict Water Heating natural acvantages cf C!eanhness.
secety s needs are to be met. :t wil! Program. :egun in late 1978 and one cf convenience. renachty. and incividual ceccme increas ngly essential to the largest of .ts k:nc in me naton, rocm thermostate centrot to encourage use edectve!y all availace energy contnues to attract substartal con- censervaten. snould at*ract greate.r fcrms. This means the eft: cent sumer interest. The eng:nal goal numbers cf customers to eier,aric heat-use cf all of tocay's availacle fue!s- was 600 instaliatens in a three-year ing. There wer.e 913 conventional coal. gas, oil. and nuc! ear-as well pened. By the end of 1979.there were e'ecmc heatng instauatens mace en as the employment of succlemental 272 systems scid. The 6C0 mark :s now the L:LCO system in 1979.
energy forms, such as sclar and wind excectec to be reacned by the end cf Heat pumps arethemcs! economical power. Al mese energy forms can te 1980. Uncer the pregram, me system heating and cooling systerns availacle mada convenient:y available for use in is scid and installaten is arranged by to LILCO customers. and trey are the home and business by conveitng LILCO. Backup energy for me solar imocrtant energy savers. The nign them to electncty. A number of systemis proviced by an e!ectnc energy efficency of the recmc neat L!LCO projects centinued in 1979 to heating e'ement in the het water pump is making th:s ren.arkacle cevice demonstrate m:s versat hty of electncty. s:crage tanx. This elemert auto- increas:ngty popularwitt censur ers The Solar Electric Partnership. matcally previces accec heat if ccncerned witn stretenir g meir neatng The use of solar power en Long Isfand necessary. us:ng erectr'ety dunrg off- cel!ars. Heat pumps ceci as we!! as snows premise of mak:ng a significant peax nignitme pencds at LILCO's mest heat simply Oy revers:ng tneir ccerat:ng contribution to recueng the use of cil economical energy stcrage rate. A;ltne cycle. They deliver accre timately twice for heatng. Acout four cut of every five systems are monitored bytheCcmpany as much useful heat enercy as they Long Island hcmes use oil for space to provice cceratng and cost data. censume. This is ecss;ble Oecause and water neat:ng. As oit ;:nces have A unique feature of me program is a heat pumps use energy to e cract heat nsen. sucpiemental solar water heatng cusicrner seminar senes wnich covers already procuced cy tre sun.The neat nas beccme mcre ecencmically the measures that can be taken to is available in the environment in the attractve to censumers. Electnoty is cotmize use of the system. These cutdecr air or uncerground watt.r. Heat
- ecoming a natural partner in solar seminars are enthusiastically received pumcs are increas:ngly being used in reatng insta!!atons. conveniently by sclar system purenasers. acartments. condominiums, single-succlying backup power for the Electric Heat. Rising oil prices and family nomee and cr' ice builcings. It is cenocs when ne:ther the sun nor supply uncertainty have also estimated tha. there are now some storage cacactes provide adequate stmulated renewed censumer interest 3.000 heat pump instailations in the energy With growmg num0ers of such in electnc heat. The ecst of heating a LILCO service area, cf which 681 were estailatons on Long Istand,it is home using conventional basebcard installed in 1979.
excected mat greater amcunts of off- efectnc systems is now siigntly haic'v Thermal Storage. E!ectncty's How a Heat Pump Operates Summer Winter t Heat is sesortec ' rom incoor air ey low temoerature vaconzec refrgerant. 1. Heat s a sorted from cosd outsice air ey icw temperature vaconzed
- 2. Corporessor pumps neat lacen re&gerant to outdoor coil. m'ngwart.
- 3. Heat s trarsam!c io outside air
- 2. Aer rgerart casses througn ecmcressor. and . coracressac :rto
- 9" #"*'" **"
4 Ae'egerant ten concenses into a aquid state 'o eoest cycie 3. As it passes througn incoor cosi neat is trans-insuiated cucts m eyn temtum egwant irsuiated cucts 5 Coos. *litersc. conumic.fied air s
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- Coos air air. me gaseous retrgerart concerses irto a houic lr;-
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Warm air ie: g state and retures to tre i'
( a[ :' zrh outcoor aeat excnarger to recent cyc:e-
)lI lh warrr air
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Room a.r 3 accm air g - I
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--- 4 J y Ag 4 *g g_q 4 - Ar ww The viectric heat pump is a unsque energy saving device capaDie of providing year rot.pd indoor comfort. In summer, the heat pump cools like a conventional central a.r condifloper. In w!nter, the cycle is automatic 2ff f reversed to provide space heating.
3
I The Consumor Tums to Gas i versat hty allows tne cevetecment of cf teing cowered cy an energy form Whle tn? national oil succly cicture many .nncvatrve ways to ncrease tne tnat is not scie!y cepencent en again reacrec a cr:s:s cunng 1979. the e*f:c:ency and eccnemy cf :ts use In cetroieum. E'ectnc:ty may also be interstate naturai gas succly s:tuaten 1979. LILCO :ntrccucec two excen- cenvec frem ccal. nuc: ear. nycro- bngrtenec censreraciy. Animpcrtant trental energy storage systems for cower. refuse. anc. it tne h ture. from facter in this .mc .ement has cochng er heatir'g trat enacle resi- the sun or tne end. Eilectric venietes been the ecuatzation cf intrastate a.ng.
i central users to transfer e'ectnc nave the furtner acvantage that tre arterstate gas ences. In aceton;,.
ccesumpt.cn frem cea< to cff ceak longest line their users need extencs cergress:enal at!gwance of higner penocs of cemand.Ccerat:en cf the only to tre nearest e!ectnc out!et. wei:nead cnces has st;mulatec gas two incecendent stcrage systems mil L!LCO has ceccme one of tnetargest exc:crat:crt !ncreased gas incustry te stucied in a total of 100 Long Island cwner-acministrators of an electne and feceralinterest in func:rg such ncmes in 1980 and 1981 The units use venicle f!eet in the Un.tec States. projects as c0al gas.ficat:en. deec efectnc.ty mainly dur:ng off-ceak Selectec in late 1978 as one of five cnlling and the extract:cn of gas from cences at nignt to reat er freeze water. initial contracters in the COE's national sna!e snculd improve future gas sup-whicn is then stored in scecial tan <s demons
- rat:en program, the Comcany phes, althcugn at nigher costs than at to be availacle fcr neat:ng cr cosing is enlarging its own etectnc f!eet. It wiil present.
cunng the day These excenmentar also acm:nister DCE programs in ULCO has centracts to store i
prograrrs. wnicn are a ecccerative Ncn electne vemc!es mil ce mace accrcx;mately 14 balien cucic feet of effort of L:LCO. tne Unted States e.va:lacle to ccal gevernments. cusi- gas for use cur:ng tre winter, er accut Cecartment of Energy aDCE). anc the nesses. anc to a cilet commuter 45% of the gas recuirements for a Emcire State E!ectnc Energy Researcn cemenstraticn program. While sig- w:nter utn ncrmal weather. In Cerceraticn (ESEERCO), wul previce nificant ceveicemental werk is in acc:t:en. L!LCO nas a Ucuefied natural valuacie ccerat1ng ,nfermation en the progress to excanc tre etectne gas clant tnat can store tre ecuiva!ent ef9c:ency of the systems and cen- venicle's pctent:al. excenence to cf 800 millicn cucic feet of gas in sumers' accectance of them. cate nas snown that .t can now te liquid form. plus other fac: lit.es for Electric Vehicles. The gasoline considered fcr many scecialtrans- ma<;ng precane-air gas that can be sncrtage of 1979 mace millions of portat:en neecs. Moreover the used to meet the colcest-day needs of Amencans aware of theinconvenience announcement Oy General Meters tnat its gas cusicrners. These storage and that can resuft from cecendence ucen it will ceg:n producing electnc precane-air fac: lit:es enab!e LILCO to a single fcrm cf fuelto meet venic!es :n the mid-1980's neraics succly all its firm gas customers uncer transportaticn neecs. For scme wage the acvent of the electnc car as a the most severe caily winter concitions.
earners and cus.nesses the cifficulty generai purecse venic!e. Satisfying Customer Demands.
in cttaining gascaine even threatened Totalmcf sales of gas to LILCO cus-f:nanc al cisaster E!ectne vehicles. temers in 1979 rose 3 8% above en tne cther hand, have tne advantage those in 1978. Firm gas sales in k s
~ $ff; l .' ) d4-
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so The costs shown aoove are LILCO estimates f * 'M -
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of the annual total cost of energy for domestic A. 2 ., . ..- <
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1 electricity, space, and water hosting for a
-+ s family of four in a 1.400 square foot ranch E. - .'w *- 4 ;' - ' -
N home on Long island based on LILCO s
. -49 1 :
7 - .?.. ~' electric and gae Mees in effect in January
,W'
',i [' v 1980 and tues de at 90c per gallon.No energy
' x ;y . k
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costs for 6 conditioning or for the costs of
.. a, -- -- - - -
1 serv 6ce .ontracts are included. The com-partsLns show that the annual energy cost for A neeghborhood cf !! e future is t.eing ilved in today by ffve families in Wacing River. Technology an oil-electric home using electric baseboard and nature team up to taen tfam comfortable. Eacn houss is equipped with a different rooftop Nsistance units for space heating is oetow solar penet system. BackH up oy an electric heet pump. The comoset, effletent heat pump that of the home using oil for space and water (arrows) can extract warmth from outside air, or reverse its cycle to coolinside temperatures. heating. The cost for an all-eiectric home L!LCC was instrumentaf in tre chetce of Long Island as the site forthis Cectrte Power Research ussng an ef ectric heat pump forspace heating
) Instftute (EP91) advanced research protect, conducted by Arthur o Littfe. Inc. As host utility, is approntmately 20% below that for the oil l LILCO will assist in collacttng extensive data during the next three to five years. EPRI willthen fueled horne and is comparable to thecost for
! puolish reports evaluating the retlebelity arid cost effectiveness of soiar homes, t home ing LILCO gas for space and 7
l I
j Assuring Ll's Energy Supply l 1979 tctated 39.4 0:1!ien cucic feet, Gas Marketing Benefits. S.nce Electric Sales Flat. Cusicmer ccwn only 2.6% teicw 1978. cescite accut two-thircs of tre new gas scace efferts to conserve efectr:c:ty. the mucn more mccerate winter weatner in heat:ng customers aireacy nave gas contra:ng cevefecment of more effi-4 1979. Sales to interruct:0!e customers service to their remes. neir increased c:ent a:ctiances, anc slower growin in of 4 2 cillion cucic feet rose 170 5%. gas use recutres only a minimum tne poputaten of the LILCO service Due to !ne improving gas succly. L!LCO cacital expenc:ture by the Comcany. area nave ccmcined to mccerats-tne was granted cermissicn in 1978 by tne Consequent!y.this acc:tional gas growth cf e'ectnc:ty usage. T4ta!
PSC to add new gas customers anc ':usiness provices significant profit clowatt-noursales of elecinc:ty to a; low existing cusicmers to expanc cctential to the Cemeany's investers. customers en the LILCO system it;
{ ineir f:rm recu:rements by an accitenal Censumers tenet:t. as well. since these 1979 remained at essentially the same l 16 cillion cucic feet of gas per year. add:tional gas sales have the efect cf levei as in 1978. Sales to res: cent:al i In Acnl 1979, again at tne request of screacing tne fixed costs cf the gas customers were 0.7% greater in 1979 l the Ocmpany.tne PSC autncnzed an supply system. The icng- range r esult than those in 1978. The amount of j increase to allow a tctal annual firm is lower consumer rates than would electric:ty scid to ecmmerc:al-i sencout of 44 tiilien cucic feet. In cinerwise be possic!e. industnalcustomers rose 0.5% Sales Octccer 1979. this sencout level was to all other customers.wnd furtner increasec to 46 bdlien vstem sales cucic feet. A tctal of 27.000 customers recresented cf e!ectnc:ty. were 4.6%cown cf total 6 c s,%.
acetiec ,n 1979 for new cr accitenal Comcany forecasters excect LILCO's d
gas use. These acchcatens were system kWh sales cf e!ecinc:ty to enmanly fer ccnversion from cil to gas increase an average of 16% annually fcr resicertial space and not water over the next five years, with slower reat.ng. Cunng 1979. tne numcer of growth in the early years and nigner
! L:LCO gas scace heating customers growin in the later years. Ref:ectng the was increasec 5.600. This was the precicted recess:cnary economy, total l largest increase since 1969. Gas system kWh salesin 1980areexcected neating ecuicment suppliers and to remain level with these in 1979
!! censed contractor personnel were nct and 1978.
fully acte to meet the inital upsurge in Peak demand in 1979 was customer cemand without installation 2.919.000 kW, reached on August 1.
cef ays. By the end cf 1979, newever. This was Celcw the 1978 peak cf i
the ccmpletion rate of gas neatng 2.997.000 kW. The all-time Company insta'tations had increased peak of 3.107.000 kW was set s:gruf;cantly. It acpears that this July 21,1977. following a pened of stected-up pace can be maintained very het weatner whicn was not tnroughout 1980. repeated in e:ther 1978 cr 1979.
Annual Change in Number of Lil.CO t ' 3 Gas Space Heating Customers 7.000 enemmme k .fl '
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In 1969, the numoer of gas space heating ! .
customers served by ULCO increased by ,
7.000. Fewer customers were added annually . ? *4 F* -
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in each of the next eight years. In 1977, the e
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nurnber served declined by 400.These >
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,, . ., y adding new customers combined with -
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as ace ating customers increased by and water heating. Here. a ULCO serviceman inspects one of the new gas furnaces installed by customers dur+ng 1979. Improvement in gas supply has enacled ULCO to add new and conversion gas heating customers seeking an altemative to oil 8
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! Service Area Economy Holding constructen was uc $4 9 milken to Other LILCO ::ersonnel nave cen-
- Up.Tre economy of LILCO's service S1472 millien in tne Nassau- incuted their excert
- se to tne Act:cn ,
area ne:c uc well n 1979. cescite tre Suffcik area Ameng maict crc;ects are Committee and tc tre wice network of pressures of nsmg ir:rerest rates anc a 222-recm Sheraten inn. r cw under etner regicnal ceve'ccr ent gret::s.
centnumg intiaten. In 1979. a total cf constructen. and a clannec 210-rcem sucn as tne Lerg Islanc Area Ceveice-i 94 new .ncustnal clants anc ware. Hnten Inn. Devetccment of a $65 m:ilien, ment Agency anc the Long !s: arc..- l nouses were ccenec in the LILCO 800.000-scuare 'cet. inree-tcwer Asscciat:en of Commerce anc__ . <
service area and cperaticns of 257 ct' ice ccm:: lex near tre Nassau Incustry. These groucs work in I r-cre were excanced. ::revicmg em- Veterans Memenal Col:seurn was concert to ana!yze prec: ems. esta::lisn picyment for 7.900 ::eccle. Overail anncunced in January 1980.In acciten. pncr: ties for the present anc the future, emcicyment among Nassau-Suffeik an 1.100-acre ccmclex is clannec fer and implement programs to rneet the resicents was 1.235.0C0 in Decemcer Yacnanx tnat would inc:uce a sneccing challenges fac:rg L0ng Islanc.
1979. u: 23.900 from a year earber. center, an effice cu:Icmg a researen The Nuclear Advantage. LlLCO and tre unempicyment rate was anc ceveiccment park. ccncem:niums. excects to succly accut 3C% of ,ts 6 Oct. accoramg to tre New Ycrk State and a retirement community. The first service area's e!ectnc:ty neecs witn
. Decartment of Lacer This rate ccm- technc!cgy park in N ew York State.to ::e nuclear generation ey tne early 1980's.
cares etn tne 7 Cet uremcicyment kncwn as Steny Brec<naven Teen Park. The 320.000 kW Shcrenam Nuc! ear rate fcr New Ycr< State and tre 5 6% s ::lannec for ceverccmert en a Pcwer Stat:en will recuce tne Cem-
- rate 'cr tre naten 1CC-acre site in Scutn Setauxet.
- :any's use of fore gn oil cy accut e:grt
! The tctal Occutaten of L;LCO's Cer:: crate science researen anc million ::arrets yeany wnen it is in full service area is accrox:mateiy 2.9 engmeenng ecracan:es will cccccy !ne cceratien. By c:spiac:ng tne use of million persons Amcng tne natien's creccsec 800.000 scuare feet. crc- ex:: ens;ve impcrtec 0:1. Shorenam is mere tnan 270 Staccarc Metrecclitan vic:nc, .1cre than 1.000 jces There wiil expected to save L!LCO custcmers a Statist:ca Areas. mciucing cil the ce a t&n witn tre acjacent State total of $2.8 billion over a 30-year hfe targest ccoulat:en centers tne Unrversity at Steny erock and w'th tre as compared w!!n alternative c0al-fired Nassau-Suffcik area ranks among Brecknaven Nat:enal Laccratcry. generation. Epuaily imccrtant. the use tre tcc 10 in peculaton and in the top 1979 9arked the first year of of nuclear power will provide an assur-five in censumer scendaele inecme coeration of tne Acten Ccmmittee fer ance of energy supply not pcss:ble with
- er ncusencic. Retail sales in tre area Lorg Islanc. Corrpcsed of outstancing the use of impcrtec OPEC cil.
mcreased 17.7at comparectethesame leacers from the Island's business. The future safety of nucfear ccwer 10-r enth pence of the previcus year. ecucational, and professional has come uncer ;ntense puctic scrutiny I While tne ccilar volume of new resi- commun:ty. tne ecmmittee accresses as a result of the acc: cent at the Three l cental constructen build:ng cerm:ts itself to theIcng-range economic. Mile Island Nuc! ear Generatng Staton issuec m the first 10 months of 1979 cu:tural, and ecucat:Cnal deve!cpment near Harnsburg, Pennsylvania :n l cec:mec 310.3 milhen to $124 4 miilien, cf the area. Memters cf the Scarc cf March 1979. In ate Octccer.the tre coilar volume of new ncn-res: central Directers. Ccrpcrate Off;cers. arc Kemeny Ccmmiss:cn. estactisned cy
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l Going aneed at the crossroede is construction of the new three-euilding office cornp6ex of The Jencno Quadrangle at theintersection ottwo maior Long Island highways. The first building, shown here. Will add 230.000 square feet of new office space to the area s economy, and is essentiaily complete. The second building is currentfy under construction. All tfree of these ous! dings will use electnc heat pumps for heating and cooling, with LILCO gas for sucosemental tectuo. Across the street. a thre+ siory. 320.000-square.ioot office euilding. to be called Num Der Two Jerter'o Plaza.ls under construction for occupancy by the scring of 1980. Tha will to a companion to Numeer one Jencno Ptaza, a 278.0CO square-foot building occup.ed in mio-197s. soth of these euisoings are electriesity heated.
9
i .
i l Presicent Carter to investgate the actng on the Commissions and the plant. !n chase twc.the Commission acc: cent. issueo .ts report. A main incustry's recommencaticns as tney wdlinvestgate the reasonacieness find:ng of its review was that "the pertain to the Ccmcany's ccerat: ens t and crucence of the ccst of the fundamental preclems are peccle- is also concuctng an exnaustive Shcrenan plant and determine if any re!atec prootems and net equicment review cf its own to icentfy acciteral of the ecst snou!c be excluced f cm proc ems. The rescrt also recom- pctential areas for safety improvement. the Comcany's rate case.
mended " fundamental enanges"in tre Constructen of the Shcrenam Other Nuclear Projects.LtLChad government's regulaten of the nuclear Nuclear Power Staten is expected to planned to cuild two 1.150.0GRW incustry and in tre nuclear :ccustry be completed in 1981. However, nt clear units it Jamesecrt to be itseif. On Cecember 7,1979. the cceration of the clant is sucject to the snarec ecually wdh New YcrK State President's resocnse to tne recort issuance of an operatnglicense cythe E!ectt:c and Gas Cerceration (NYSEG).
inc:cated that steps will te taken to NRC. As a consecuence of Three On January 29.1980. a New Ycrk State implement many of the recem. Mile Island, the NRC staff has been Scard en E!ectnc Generation Siting and mencations. The Pres; cent reiterated diverted from its normal nuc! ear plant tne Environment vcted to accreve the i
that nuc ear power must ce included licensing activites. Thus. the timing construction and s: ting of an 800 among the naton's energy cptions. cf receipt of the Shoreham ccerating megawatt coal-fired generat:ng station In January 1980, an incecendent license remains uncerta:n. A rev:ew to on Lcng istand to meet the require-crcup commiss;cred by the Nuclear eva!uate the cessittlities of further ments cf NYSEG and the Company.
Aegulatory Ccmmissien (NRC) to celays and accit!ccal prcject costs A:thougn the Sitng Scard nas not
- investgate the Three Mile acc
- cent is currently uncerway. des:gnated a f;nal site it nas :ndi-a!sc issued a recert. This Rogovin in 1978, Socz, Allen & Hamilton. lnc., catec that a Jamespert. New York s:te reccrt is also cr:tical of certain ccmcleted a management study is favored. An crcer inccrpcrating :ts industry cractces and the NRC. crdered by the PSC which fcund dec:sion is expect ed to be :ssuec L!LCO. and tre utility industry in L!LCO's excenditures for Sherenam sncrity. An Atomic Safety general, believe tnat the bulk of the to te generally reasonable despite the and Licensing Scard cf the NRC j Ccmmiss;cns' recommendations are escalaticn in costs of the project. Not- had renderec a decision in late 1978
, constructive, and that they will help withstanding these findings, the PSC autneriz:ng the issuance of a permit for make a safe tecnnelegy even safer. announced in 1979 the senecuting of ccnstructen of the two Jamescort S.nce the Three M:le ! stand accident, a two-phase rev:ew of Shorenam's nuclear units. An appealof this the industry nas responded vigorously construction costs. In phase one. dec:sion by coconents )f the plant is and has formed several organizations the Commiss:en in late 1979 se!ected stil pending before an Atomic Safety for the more effic:ent exchange Of Kaiser Engineers Power Corporaton and Licensing Appeal Scarc.
intercompany safety information, to perfcrm an audit to evaluate LILCO's On Octeter 12.1979, a State S1 ting uegraced plant operater training, and construction schecule and projectec Board cismissed the joint acclication improvec safety engineent'g. LILCO is expenc:tures for tne ccmp! sten of by NYSEG and LILCO to tuild two N
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10
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l j nuc: ear generat:rg units at the upsta!e test:fied cn the crciv!ed effect of nigner cost.
I New Ycrx comfrun:ty cf New Haven. the SEO plan.lf the SEO recommenca- Cn January 2.1980.tneCCEissued a
- NYSEG anc LILCO nave requestec a tons to sucst
- tute a coal un;t for the procesed crcer wnien. .f ultimateiy l reneanng en ths acclicaticn. planced Jamesect; nue: ear units anc acceteo. aculd pronibit the turning of
! LILCO has an 18% :nterest in N:ne to ccnvert existmg L!LCO cd-firec cil at tr e fcur eiectnc generatmg urnis i'
Mde Point Un;t 2. a nucl ear generatirg plants to C0a! were f0llcwed. :t wculd at Ncrttccrt. The Cct cany is ;n.tae-plant te ng constructed near Oswego. ccst Long Islancers an accit:enal $10 prccess Of precanng an analysMo te New York cy Niagara Mohawk Power billion in nrgner elecinc costs over a submitted to CO E ceta;fing tne ef*ects of Ccrocrat:en. This unit. now estimated to 30-year pence L:LCO atso stressed converting these units to coal.
- be accut one-thirc complete. is that the aestnetic anc environmental Fuel Supply. The Comcany's cen-scneduled to aca 194.000 <W cf gen- impacts of coal plants must ce g
- ven sumption of oilto generate e! ectr:c:ty eratmg capac:ty to LILCO's system. sencus consiceration. averages accut 50 thcusand barrels l On January 30,1980. Niagara The coal versus nuclear fuel cuest;en per day. A:1 types of fuel oilusec by Menawk announced a revised con- was also raised by the Suffolk County L!LCO have increased substart aily in struction scnedule wnsen projects a Legit. : Nre The county lawmakers pnce dunng the past year with 0.37%
l celay in the cor imercial cceratton cate askes _CO to examine the feasibility !cw sulfur residual cri-the highest in from l ate 1984 to ! ate 1986. Niagara cfco- tng the Shcrenam Nuc' ear cost-coucling frcm $15 a barrelin Men e .s a!so reevaluatmg tre P0we tien to coal The resuits of Decemcer 1978 to $30 in Decemter plantt ;cnstruction ecsts. the stu - snowed that such a " con- 1979. Ccntinual ef*cris are ceing made Cos ,r Nuclear Energy.in August versicn in tne usual sense cf tne term tocecreasecuruseettren:gner enced 1979. the New York State Energy was impractical. Changmg Shoreham fuel cils. One acpreach !S to cisciace j Cft:ce's (SEC) Draft Energy Master frem nuc! ear to coal would require higrer-pnced cil utn natural gas. An P'an was released.The recert reccg- scraccmq the nearly ccmcleted extension of federal regulations will te i ntzed a statewice need fer rew pcwer nuc! ear plant and buildmg a new coal recu: red to allow the Company to buy plants net cepencent upon cil. It recem- unit of ccmcaratie s;ze. Over the hfe gas specifically fer this purpose from mencec. however. that except for these o'the plant, this would ecst Long sources outs:de New York State after
, now uncer construct;cn (inciucing Islancers $9.6 tillion more than May 31.1980. A second acproach :s to i Shcreham and Nire Mile Point Unit 2) finishing Shcreham as planned. This cctain permission to curn higher sulfur any future umts should be coal rather estimate inc!udes the ccst of replace- cil in Nassau County. Such permiss:cn j than nue: ear fueied.The state plan also ment electne:ty generated by oil has teen cbtained from New YorkState, inctuced reccmmendations that plants durmg the seven-year de!ay unt:1 tut federal approval :s also required.
LILCO's exist:ng cil-fired ure a the coal plant would be reacy for The Company is hccefulthat .t will Nortrpcrt. Island Park, ary Fcrt cperaticn.The de!ay would also receive this feceral permission shortly.
Jetfersen be conver*ed to coal. signif:cantly increase exposure to the Uranium. LlLCO has suf'icient At putlic hearings. L!t FO experts nsk of cil supply cisruption and uranium cencentrates in inventcry to I
1
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?'^c-- g (, 1. ' ;
Reffecting conservation of energy and
-gw - (1- reY,. ..y 4
~ %y s4a j ;Sy;_v T-;}d; w . ,- . ._n' q1 ' / cooler than normai summer weather. total p' . :N-/;,.
. . .a
. Jr" p% c g r.,"J Q_ j n ". *' - .
4w.
e
- ,' e
- j =3 ]g5' g? : ,f kWh sales of electricity in 1979 remained
( g( - t (, ; ~ < - ts - . - essentially the same as in 1978. sales to 8
q}
-s.
. g .. r . r M 4 .* residentialcustomers. As%of totalsales,were
-' g ;* gy( . ~ . - g- . fh. P ,E s f' -y. '. "k g /! up 0.7%. sales to commercial-industrial W.pM
.r
, c
,#g E $ 7 # - 2qg.-
4-.
W ,i.b ' ' de. a f,Q1 --
y . ,
x 4 R. g,,M M yfi psx ,;
customers. s0% of the total, rose 0.s%. sales to all other customers, accounting for the
&l - 1 , remainmg s% of total sales. declined 6.8%. In
- jk #
ej- '
- 9. fd p ,[. t .js* i-. .- ? -
j k.74 ' ' p %.. ,dy:,4..( N p g, .# ** go. ."k -}.
je '# 1960, total sales are expected to remain at 4 z- . .. . . . . . , . . . _.
v
. .N,
. 4 ~. 4 M..
.e I -[ y [. .M..
j s .$ 5 presem levels. in accord with recessionary economic forecasts. Total system sales are The Garden City Gate station is one of three maior system entry points for the natural gas estimated to increase 4.3% from 1979 to 1964.
ULCO ourenases from its pip *Ine suppliers. Pipcine supolies plus ULCO storage facilities assure the Company's firm gas customers of adequate gas under the most severe winter weather Conditions.
11
l .
I
! Looking Furthar Ahead
) fuel the Shcreram Nuclear Power Industry-Wide Research. L!LCO's of partcular value to tne state.The
- Staten througn ts first three years colectve is to find ways to prov ce tne New YcrK State Energy Pesearen arc j cf cceraten. In accition, the Bokum most reliase. ecencmical, and env rcn- Develocment Authenty (NYSERDA) j Resources Cerceraton nas centractec mentally acceptatte energy pessible a:se succerts a creac range ef tecnnical to succly ULCO w:tn 10 meicn pouncs w:th tocay's tecnnotcgy. At the same researen anc ceve!coment prciects to l cf uranium concentrates. This is suf- tme :t is explcnng.incividually and cevec; future energy sucdies ac:1to i fic:ent to fuei Shcrenam tnrougncut with other ccmcan:es, tne tecnncicgy cromote e":c:ent energy uselcr..
i its cceraung life. Celivenes were cf the future. A total of 56 8 million New Ycrx State.TheCcmcanycrovided scheculec to tegin in 1979, but Bckum was committed by L!LCO last year to a total cf $1.9 millicn toward ESEERCO l has been unacle to meet this anc ciner lccal and incustry-wide researen. and NYSERDA activites in 1979.
i contract commitments. (See Note 7 to At the catenailevel,tne Eectnc ULCO also succerts the procrams l Notes to Financ:al Statements). Pcwer Research Insttute (EPRI),which of the Gas Research InsttutMdRI).
The tnal nas teen concluded and a came into being in 1972 under the Organized in 1976, GRrs effor.3 l cecision is penc:ng in the litgaticn voluntary sponscrsn:p of the natien's are aimed at increasing tne succly,
! against the Wesungncuse Ccrcorat:cn electnc utility incustry, is increasingly imcroving the transecrtation, anc i over centractual agreements to deliver c:rectng its research strategy toward ennancing the effic:ent use er gasecus I a mer um cf 8 3 million pcunes of icentfy:ng and cevelocing imcrove- fuets. ULCO's supccrt of these cro-i uran,um ccr,centrates to L:LCO. Mean- ments in present tecnnciogy to grams amcunted to 50.2 rr,nlien in 1979.
anne et'cris contnue to reacn a allev ate current problems. Eetween !n 1979 S2.5 millicn wes scent fcr sett:ement. 50% and 60% cf ;ts 1979 excencitures of ULCO's internal researc 1 anc ceveico-5200 miilion were devoted to this ment programs. A cost-;enefit analys:s empnasis.Other lcng-term EPRI cf these program; fron 1973 tnrcugn
! actvites inc!uce investgaten of 1979 snewec resudant savings cf l emerging energy sources, including almost S320 millien in ' 979 ccIlars.
fusion, fluidizec cec comcustien, aceut a ninefold return cf ir ut:al researen l
1 geethermal and solarpower generatien. ccsts. The savings to cate nave ccme
- the excenmental fast breeder reactor, almost entrely from ULCO's Enviren-l anc electne vehic
- e deveicpment. mental Quality Control System 1
ULCO proviced 52.2 million to EPRI (EQUAC). This pioneenng air menstcr-I and re!ated acuvites in 1979. ing system alows the Companyto turn 1
At the Neu Ycrk State level. the lower-ccst, high suifer oil while at the
! Empire State Eectnc Energy Research same tme maintaining acceptable l Ccrocration (ESEERCO) enables !evels of air quality. Significant ongoing ULCO and ciner Ne'u York utilities savings are expected trem EQUAC and l to pccitheir resources and succort a numcer cf ctner projects.
j prclects of ccmmon interest whicn are i
gr 0 *. n
.I P .
)
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-e.
.g ,
5: {' 16:
L L Y, @ 4 o lsi a
5 . .
Reaching actosa 100 years, a littte boy presses a button and sees the new light Thomas Alva Edison gave to the world In 1879, when he invented the first practical Incancescent lamp. Long Islanders can still see LILCo's Centennial af Light estubits at local schools,librartes, and other pubile facilities oisotayed are electric lights, acpliances,and toys that have made people's lives easier, better, and more fun during the last century, t2 l
1 A
l i
i Serviceis LlLCO's Businsss Balanced Mng. Saianced Baling showing them scec:fic energy saving form cf cer'ctmance management
- a new. convenient.resicental con- measures ma:can ce acchecin system. The teely feeccacx cf werk sumer cdl cayment plan-was intro- their hcmes. =cr Only $10 as recuirec per+crmance cata enac:es managers cuced by the Comcanyin tne summer by law (sucstantally ceicw tne actual anc sucerv:scrs to emcicy personnet, of 1979. The plan makes gas ard ccst). ULCO crevices an erergy auc:t matenal. ecuipment. anc .ac:htes mere efectnc Odis mere manageable cy ccncuctec in the consumer s rcme. effectvely The eventual goal is ic ...
Civic;ng a customer's annual energy A mad energy accit (52.C0 cnarge) have essent: ally a!! LlLCO emcicyees ccsts 'nto 12 equal mentnfy payments. provices an erergy saving evaluaten on s milar systems.
This system smccths cut tre cayments casec oninfermaten resicents send A new centralizec sxills trairir'g for fluctuat:ng.seascnal peak cen- in to ULCO. The Ccmcany also center was estactisned cunng 1979 in sumction Of energy. Since .ts incection. succties free informaton to interested Hauccauge. Using the most mccem L:LCO has ciacec acout 94.000 cus- customers who wisn to perform the tecnniques anc fac:iites, the center wt!!
tcmers (aperoximately 12% of all res:- energy saving evaluaten themselves. provice ir. tensive " hands en" training cental censumers) on this cctonal Service Reliability and Productivity uncer sucervised conc: tens. Mainte-program. Balancec Bdhng is one way Programs. in acc: tion to the instadaten nance persenrel fer the Shorenam the Company is snewirig its concem of many mdes cf " tree wire l' p:ctured Nucl ear Power Stat:cn anc a wice range i for me censumer s acihty to meet the below. L LCO is werk;rg to improve cf ciner Cemeany emc!cyees will be r: sing cost of energy. The crcgram is of its service retiacihty Trcugn use of a trained at me new center.
i cartcular advantage to senicr c:t: ens device caited Thermcvision, an infrared arc to these wno must cucget mem- scancer wnicn cetects ovemeatng in seises within a fixed inccme An acci- electnc current-carrying equipment.
tonal feature of Safanced Edling is mat Tnermovision is usec to detect
.t eisminates me use of est:matec acncrmalcceratng concitons whicn cilis fcr scace neatng customers. would not te picked up ty visual Energy Audit Program. Legislation inspection. Pepairs can then te made enactec in New Ycrx State requires cefore service fadure cccurs.These uthties to estaclisn a program to provice surveys have mace a s:gnificant custcmers witn energy aucits cf their centnbuten to hcicing cown the cost
. homes. LILCO's promotien of its pro- of unscneculed repairs and in prevent.
grams resultec :n over 20.000 com- ing service cisructens.
cleted energy auc:ts in 1979. The Thrcugncut 1979. LILCO cent nued Energ'/ Aucit Program is availatie to to excand its productvity improvement homeowners and tenants cf cre- and performance management system thrcugh four-family hcuses. The audits programs. Currently. 640'o of all pnysical are cesignec to encourage energy anc cierical employees and 40% of conservaten amcng censumers by management employees are en some hpy d C
p..r4s ,
. a .
(.,% 9
<_ E W,.
j l5id.# i .,~' M- %e>-(
' '4: $' .
9.+
N ... -
s ,I 1 l
' of,/ M. ,
/,
'..L
~~
m , .
a :
l 4Ll ' *
. p/
^
- 7. %g ., ,
~.'.
q,, ~
- 4;*ty.~.,
sheathed in a tough, protective coating. UuCO's tree wire
- stays up when the branches fadL The new wtre, four times es strong as conventional wire. can withstand far greater impact from falling trees and limbe and also has electrical insi.;laticn quelltles wnich can prevent service f ailures. in 1973. about '00 ctrcust milos of the new wire were installed to improve the rediability of electrical service to LILCO customers. A total of s.250 ctreust miles of tree were* has oeen insteiled smco the late isso a. This program is currently concentrating on the reosacement
. of rear-ofoperty, bare-wire installations." Tree wire
- is the most effective and economical 311effistive to placing these IInes undef 9found. IlIs designed to reduce substantiatly a prirnary cause of extended outages atter maior storme.
13
Financial Analysb Earnings Revenues Earnings of $2.41 per snarein 1979 Revenues tota!ed 31.045.5 md:icn in were 3c, or 1.2%. below these in 1978. 1979. Eectnc revenues were $860.8 There were 16.9% more average mdlien and gas revenues were 5184.7 commen shares cutstanding in 1979 million. The increases from pncr tnan in 1978. Earnings per snare have years were:
been increased in 17 cf the past 21 years. j' Dividends R"enues oo.imaani ,
in June 1979,the quarterly d9idend .. ,g7, ,973 rate on the commen stock was R.", 7" 3 g 3 g increased to 44%c from 42%c per
- r. hare. This raisec the equivatent annual E'ec:nc 3122.4 16 6% 555 3 31%
rate by 8c tc S1.78 per share.The Gas 24 1 15 0 19 6 13 9 ,
crvidend rate has been increased in 20 Totai s146 5 16 3% $74 9 91%
of the fast 21 years.
Cuarterly dividends were paidin 1979 The pnncipal changesin electnc and and 1978 as felicws: gas revenues were due to:
(1) Changes in Rates: Eectnc civioeno. revenues in 1979 reflect $16.3 mdlien Paid per share of the rate increase effective May 4, 7,i,'",'"' 3gy, igy 1979, and the calance of the rate 40 .c increases effectve in 1978, discussed See i 42Sc May 1 42we 42%e below.
Ag.1 uwe 42we Eectnc revenues in 1978 reflect Nov 1 44%e 42%c $52.9 millicn cf the $59.7 mdlien 70 tai p aio si r4 si saw electric rate increase effectve January 17,1978, cf which 515.0 millien became The Company estimates that for effective on a temporary basis August 1, federalincome tax purposes certain 1977, and $1.6 mdlien of me $4.9 percentages of the civicends paid in million electric rate increase effectve 1979 represented a return of capital August 24,1978 to cffset increased Electric Expenses and.therefore, may not be taxacle as wages. (cens cc e 3c orcanary income.These percentages Gas revenues in 1979 contained $6.9 .
are 100% of the commen stock million of the rate increase effectve
~
and 63% of the divicends paid en May 4,1979. Gas revenuesin 1978 con- 9s i^
all senes of preferred stock. Such tained the full effect of the 59.4 millien '0 estimates are subject to audit by the rate increase effectve August 16,1977. . _ , . -
o~<
~
Intemal Revenue Service. (2) Changes in Energy Sales to Rate increases Customers: Approx:mately 45% of the g Higher annual electric and gas rates Company's annual system kWh sales cf $26.0 mdlion and $16.6 million, of e!ectncity are !c residential cus-rescectvely, were authenzed by the temers.This is ene cf the highest ',%.or po PubHc Service Commission (PSC) and propertions of such sa!es in the 20 became effective May 4.1979. Because electnc utility industry, and results in the PSC deniec the addit!cnal cash re!atively stacle operations of the ficw relief in electnc rates the Company.
Company had sougnt in this case, a 10 pet:t:cn was filed on May 28.1979, for a Electric sales en wii renearing. This pet:tien was denied en %,,.,
1979 1978 July 24,1979. Second-stage e!ectnc to+=a=* =
and gas increases. pnmanty designed
" *" "*h * "*h %
sg 73 73 75 77 j to ret'ect future higher property taxes. System Sa:es of $5 4 mdlien anc $15 millicn annuaily, Rescemai 40 03% 161) (1.1)% g3, gen,s ir pied from avwege 2.is ocrevenue kwh in per tosskwh sold has to s.se res::ectively, were fi!ed January 25,1980. commere:ai in 1s7s. This rise is oue mainly to increases An acclication was filed with the PSC am in rues prica. The cost of fuel and purchased m LJLCO en Sectem::er 21,1979.to ms'eal 32 0 a, 139 2.3 poww pw average kwh sold was 2.se in 197s,
- y about Wget times the level to years ago. This Ctaer < 42 '. c6 8) (15) r2 3) increase erectne rates $25.6 mdlien. cr ine,ene in ene cost or fue wm responsini.
2.5%, annually for me 12 montns Tetal for so% ot the tots inerene in avwage enced Acni 30.1981. This recuest was svrtem revenue per =wh. coeration and meinte-cesigrec to cffset further inf!cien ms 30 02 63 as n nee apenses, the expenses most sunieet ac::itions to plant in service, and to Power Poca ,
,9
'$*,8 o**e"in's NNn'theiceai ref!ect more modest kWh sa!es groveth Saies e2 , M4 128 2 consume price inder. Total taxes have than previous!v estrnated. Public Total Sales 92 01% 507 4C% slightty less thart doubied. Both represent heanngs en mis acclicaten were 8**"SP*""'*'9"""***Y ccmc!eted in January 1980.
'"*"'"'Y# # "* '
14 l
Accroximate'y three-quarters cf tne purchased power. tre mix Of generaten Cornpany's annual gas revenues are ey the Cerrcany, and purenases denved fr0m mcf sa:es cf gas to s0 ace et ;cwer. Our:ng 1979 tne Comcacy neatng custcmers Ac0 crc:rgty, ctal purcnased rec 0rc amcunts of power gas system revenues and saies are from etner ut!ites.trerecy cecreasing neavily inftuerced by seascnal the use of hign-cost,!cw su!;nur c0n-
- em;erature vanat: ens Oetween tent cd oy accut 5.7 millicn carrels. ---
pences, and tre availacility of gas for Tre use of sucstantal volumes cf - - .
sale :c :nterruct:cle cus:cmers. natural gas, pnnc:cally cctained -
trrough spec:al curchases, for use in on sain -c ,~ , electne gererat:en saved an acc;tenal 1.3 mill:en barre:s. The Comcany ls"."
- '"'~
u 1979 197s estmates tnat these actors savec mcf % mcf % customers a tctal of $42 million in 1979.
Arm system Oelow the estimated cost of generat.ng sa.es an ecuivaient amount of power en the scace ULCO system with oil wnichincreased neanng (1 32) (4 01 % 0 30 09% .n cr:ce cunng :ne cenca. Tne average (scace 0 25 33 0 04 35 c0sts were as fci!cws:
ictai Frm 11 06. <2 6) 0 34 09 Average cost ete n.cr.c'e 265 1705 ti 02;(39 7) 1973 197q_
Tctai s,s em i== = unit unit Sa es 1 59 38 (CSa) (15) @,",,*,',,*
cost % cost %
sa es ic Ctrer For utu es - - - -
ge.c a
Gas Expenses Tctai sa es 1 59 38% (0 68) (15 A [C[9[s tCenars cer encf) !
Fue's cen- 5400 s
, gree Oays surrec 'cr Smec (740)(133 8 75 14% Net Gen. -
(3) Changes in Fuel Costs: Octh p5r*cNa"see ^ , -
efecinc and gas revenues are af'ected cc*er 0 66c h3 (O C2:c (0 9) 6 by cnances in the costs Of efectnc fuels. Eecr.c -
cerchased ccwer.anc gas fuels (see 'g[0st , ,
3 00 be:cw) whCh f!cw to Customers ment inrcugn the aCpr0pnate fuel acJust- :e'erral (0 05:c (312 3) 0 04: 633 3 ment C'ause? Or Gas 2.50 s >necut s/mcf 50 32 20 3 s022 16 1 -
Operation and Maintenance Expenses
- wo As previcusly ircica:ed. the Cnanges 2 Q,l' ,,,,,, 1979 1978 in eleC:nO anc gas fuel and purchased -
pu,,
e , v..,
s ., g g power 00s:s were offset in eacn year by
. Changes in revenues CCta; rec thrcugh 1 50 s S 50 9 208% 3(144) t 5 6)% the,a;Cr0pnate fuel aclustment clause. l p ,c.,,, g i he changes in cther Operaten anc l
- cwer 65 2 149 7 128 41 7 mainterance expenses Oetween 1 00 g ec.fc .;,i penccs were pomanly cue to nigrer ccst emcicyee cayr d and cenefit C0sts.
ac;ust ent anc Otrer 00s:s reflect 0g inffaton. o 50 ce'e rec i21 4i1314 3) s 0 712.7 Tne increase in 1979 was greater than Gas h.es 184 2s i toS 175 ;n 1978 cecause scme ncrmal Ctrer cceraten anc maintenance actv'tes O Ceeat;cn were not performec in tre 1973 first SS " 7 ~5 77 3 Qn.,,,,,,.c, cuarter ,n crcer Ic cive ; manpower ouring the last 103 vs. utco : averag.
E.::,,'se s 21 3 14 5 to3 73 anc funcs to restcraten arc cleanup revenue per met et ... sold has risen aecessitate-*d~ :ne severe ice and to 54.23. an increase onen then one-an+
B!ai $ 134 9 25 2% 325 7 33% one-half times the s1.74 levelin 19e9. The snCW s!Crms CLC09 !T'at perCc. primary reason for this increase has been the i re OOsts Cfinis res! Oral:Cn were three fold incrosse in the cost of natural gas Oct Cnarged !c c0eratng expenses, sold, wh6ch now accounts for almost s0*e of a ad P0r9Cn3 cf suCD Costs nave e:tner Oeert the system average revenue per mcf sold Maintenance Expenses comoared to 29*. in 19e9. o peration and recovered Inrcugn :nsurarCe or have maintenance expenses per mcf. the most Cnarges .n the C0sts Of e;ectnC fuels, been er are Oe:ng cnarged to the controitante erpenses rose 93%, tracking Cur 0rasec Ocwer. anc gas fLeis CcmCany's s!crm reserve. in aC0; tion. the increue in the consumer pnce index, Oe! Ween periCCs are innuenCec Oy gas system anc elecinc Or0CLC0Cn Cian! ""'
cnanges in eaergy sa,es (see maintenance ex0enses were n:gner in
'"d an,p"**[**26" 'Q Tots axes during the pened douoted, declining from 216 of Fevenues).:ne pnces of fuel ard 1979 tnan :n 1973. revenue per met said in 19e9 to 17% in 1979.
15
Other items Capital Requiremen]
increases in decrec:aten generally L!LCO's cacital recuirements, result from tne aceton of plant in inc!uc:ng AFC.Icta:ec $466.1 millico service. Increases in operating taxes in 1979:
are onnc:pa:!y due to nigner e,,,,,, g ,,,;,,,, n ,,
crecerty taxes resultng from the (inctudes Trusts) .us- orsi acciDCn of new plant and increased ,
precerty tax rates, as weil as higner w expectures - . .
state and 10 Cal gross inCerre and franCnise taxes on increased revenues. "C E'O ** $#I
- cas crecem 13 3 Changes:n feceralincome taxes are ,4 cue pnnc: pally to vanatens in net ecmmevrecem income before it'Come taxes, a cecrease in the tax rate, utlization of Ae o e securtes investment tax Credits, and 'tems TotalCaoitai Aecuirements s4661 capitalized for financial statement curecses that are current ceductions Permanent financ:ng in 1979 totated on tne Cemcany's tax return. a record $312.7 malhen, composed of:
Tre !ncreases :n interest charges permanent Financing and creferred stock civicends resuit co -ee i cnmanly frcm the sale of acct onal vengage cones s1cc o secuntes. ancreases in interest and Autner:ty f*anc;r g nctes 19.1 civicend rates, anc me use of In- p eterred stock 7EO Countes Resources Trust and ccmmen ecuity 119 6 Tn-Ccunties Constructen Trust to y,, p g.n 33, 7 7 finance the Comcany s centinuing ccestructen and nuclear fuel programs. In acditon, Tri-Counties Resources Tre amount of al!cwance for funds Trust borrowed $29.3 milhon, through usec cunng construction (AFC) agr (inctuong AFC correscending to Trust to feements inance L:LCO witnexpenditures its lenong for insttutons, interest) fluctuates from pr , >d to period. These fluctuato% a a caused nuc! ear fuel. Tri-Ccontes Constructicn oviced $48.4 million to finance cy changes in the cce cf money,the level of constructor activity,the Tmst ULCO c[s share cf excencitures on Nine Mile Point Unit 2. A further $21.0 mill:en amcunt of ccnstruction work in crogress (CWIP) inc!uded in rate base, was prov:ded through the Resources Trust to fund L!LCO s Ican to Bckum and moofications in regulatory pclicy. nescurces Capcaton. Adctonal The amount of electnc CWIP informaDen on me operaden ome included in rate base wasincreased Trusts is provided in Note 6 cf the Nctes Consumer Price Index vs.
erfectve Fecruary 1,1978, from to Financial Statements. Average Price per kWh of
$175 0 miihen to s300 0 million.The The Company has authcrity from the LILCO Residential Electricity tctal Comcany average amount of Federal Energy Regulatory Ccmmis- iP. c.nt enarse CWIP allowed in rate case was $304.1 *,
sion to issue up to $250.0 milhon of milhon in 1979 and $288.4 milhon unsecured short-term cebt in *he form in 1978' cf notes to banks and commercial ;
pacer. Commitments have been 4 #
DS"8,,, cetained from a number of banks to provice up to $250.0 million en a 1979 97s revolving credit basis for approximately
%J'.'.* %.
- $ % $ % five years. Authcrity is being sought 3o0 cecrecaten 3 2.9 56% s61 136% from the PSC to berr w uncer these cce atng ccmmitments.
taxes 12.5 39 96 73 No shcrt-term cett was Outstancing 4:e'ai at the end cf each of the last fiva years.
200 e' axes (16 5ne90) 12.3 132.9 (See Ncte 4 Cf the Nctes to Financ:al
- ar;es Statements.)
seuC:ucr; ULCO's cacital requirements are too de 'e4 ate: currentry estmated at approximately -
p,ic.ina,,
? CC"C *e3 $448 mulien in 1980. Extemal finanong
$* 350 349 149 174 is excected to total $288 m:llien, and an acctenal $73 million is estmated to te o Ct er n::me ._
anc provided thrcugn the Trusts. For the
- ecuctees 5 2 5c24 09 6225 years 1980 througn 1984, inclusive.
- e'e"ec ULCO's cacital requirements are p o.noalP1nc 5EWPr estmated at $2.6 tillion. Thie inctuces 'co Nenes 2.2 7.1 30 10.7 g ,
$0.4 tillion to recay matunng senicr
$$,"C secunties eneccallyin 1981 mrcugn The average price per awh of electricity to con
- terrewed 1984 Extema! scurces are estimated ynes and to crovice $1.1 tillicn anc me Trusts '!'CC '"'d'"d'n'enja Y s higne
$c,In n .n 2 urner in 1s79 nstsi
- 63 529 33 ,a," Will provide 50.5 billicn. same period.
16
Shareowners' investment Cf :ne retai $123.8 m:lhen cf :nceme in ' ate 1979.the Assoc:aten cf fcr cor mon s:ccx. 534.2 millien. cr Investers in New York Utstes (AINYU) 26 5%. nas reinvested in ULCO for was fermec ::y secunty neicers of snareewners. At tre enc of 1979, invester-cwnec New Ycrk utites-common equity representec 39.7% cf A trocnure procuced by AINYU was tctal ca::italizat:cn ccmcared utn sent to ULCO investcrs in Fecruarf.
35 5% at the end of 1977. These rat:cs Accit:cnal eccles may ::e cctainec cy ~
exc:uce the Trusts from cap:talizaticn. unting toine Asscc:aticn at -
Aicingin:nisincrease was ne Cid Cam::y Roac -
ccnversion in 1979 of 34.090 snares Ver::ank, New York 12585 cf Ser:es i Convert:ble Preferred Stock. Attn:Jonn Howley Over 70%cf alltne SenesIsharesnave er by centactng L!LCO's investor new ceen converted. The total Relations Civision.
increase in ecmmen equity representec 48.7%of thetota! increase Directors and Officers in capitalization. Accointment of two new vice Dunng 1979. L!LCO helders of pres: cents became effective Acril 1 common stecx reinvestec S16.6 million 1979. Age 42 wnen electec Vice of ine!r civicencs and add:tional casn President-Nrcrasing. Hugn P.
- n rew commen snares tnrougn the Scy!an is respcnsicle fcr :ne procure-Cemcany's Automatic Divicend ment of matenais,inc!uding cil anc Peinvestment and Ccticnal Casn nuc! ear fuel, anc a:1 equipment.
Payment P:an. Over 22% of LILCO succiies, and services. Matthew S.
snareewners currently cartic::: ate in Proce li then age 53, was eiec:ec Vice inis P!an. .nvestng at: cut 15% of the Presicent-Empicyee Relaticris. Mr.
tctal ccmmen 5:cck dividends and Proceili cirects LILCO's programs for acciticnal cash equivalent to uo to 5% emcicyment, a:f;rmative acton, cf :ne tctal civicencs ca:c Quarteny. training and counseling employee S.nce .ts incection in December 1972. cenef.ts. later relations, accicent snareewners have invested $57.9 prevention hesith, and office services.
mdlien in LILCO througn the P!an. Mr Procelli filled the vacancy created Nonparticipat:rg ccmmon snare- by the ret:rement of Grant Brown, who owners may octain a cecy of the had sersed the Company for 42 years.
Current pros::ectus descr.bing the terms anc c0ncit:cns cf the Plan in full. Insurance inc!Leing the cctionst cash feature and The Ccmpany has restructured its an autncnzaten fcrm for particoation. Directors and Officers Liability Oy wntng to Lcng Is:anc Ugntin9 insurance with the Naticnal Union Fire Corrcany. 250 Cid Country Acad. Insurance Company of P:ttsturgn to Minecia. New York 11501. Autnon- crovice coverage for wrongful acts by Common Shareowners At Year End zat en forms from nonpartc:pating Direc cts and Officers as wd as Po"**
shareewners ces:nng to :nvest the:r ,rio incemnif; cation for the Comcany.
May 1.1980. civicenc must te received F:cuciary Uability coverage is row '
nn later tnan A::nl 20.1980 included under this policy for tne '
ULCO contnuee :o partic:pate Ccmpany. its Directors and Officers. '- '
activety with ctner ccmcanies in :he and any employee ceemed to te a Ccmmittee on Captal Formahon /
fiduc:ary cr trustee, fer any allegec througn On,icend Ae:nves:rrent. The bieach of fiduc:ary lia::ility uncer :ne m
- c. -
- ur::cse cf tre Ccmmittee is to seek Empicyee Ret:rement income Secunty feceral legislaten that wculd permit /'
the deferrec payment cf perscnal Act of 1974. This insurance coverage /
feceral:ncorre taxes en civicenes became effective on August 26,19,9. / -
at an annualecst of $73.975. ..m '.M -
re nvested in newissue commen No paymentsnave beenmadeurcer * '
snares uncer sucn cians as ULCO's. any pclicy cf incemnifica icn insurance 3 Sucn egtslat;cn has : een irtrccuced csuec to:ne Cemeany fer tirec crs. .
~
in the Senate cy Serater Gay! crc Off:cers Or ficuc: anes.
Nersen (S 1543) anc in the House of Recresentanves ::y Representatve J J. P'ckle (H.R. 654). H.R. 654 is now
.nc:uce: as Secten 202 cf H R. 5665.
- wn.cn ull ccme u:: fer neanngs in 1980.
Passa:;e of suen !eg: stat en would crevici a ctrect anc cest-et'ective s:ec icwarcs recucten cf cou:: e taxaten on crvicenc re:nvestment :n sucn snares.
tnerecy ::revicing acc:t.cnal ca::itai 3
- c f .arce essental ecergy fac:ht.es. es it is is 77 s We urge you te excress ycur 'rterest The number of owners of ULeo's common in :Pese 0; tis to ycur memcers stock totated 151.800 at year end 1979, an ,
cf Cer'gress. increase of $3% in the last ten years. 1 17 1
Common and Preferred Stock Prices The Commen Stock,tne Preferred Stock S100 par value Series B, E. I. J, and K. and the Preferrec Stock $25 par value Senes O and P cf the Company, are traded on the New York Stock Schange. Trading in the Commen Stock commenced Cecemcer 20, 1979, on the Pacdc Stock & change. Tracing in the Preferred Stock. 3100 parvalue, Senes S, commenced on Ceteter 16,1979, en the New Yorx Stock &cnange. The tacte below indicates the high and low sale pnces on the New York Stcck & change listing of composite transacticns for the years 1979 and 1978.
Common Stock Preferred Stock Senes B-5% SeresE-435% SenesI-5%% Seres J-a.12% Seres < a.3o% Senes 0-52.47 Seres P-3243 Seres S-3 30%
- .n Low Hgn Low Hgn Low Hgn Low Mgn Low %gn Lcw Hgn Low Mgn Low Hign Low 1978 1st Quarter 19% 17% 57 54 48% 45% 90 86 92% 87 94 89% 27% 26 27% 26 - -
2nc Ouarter 19% 18% 52% 50 47% 44 % 92 88 % 86% 80 92 80 27 24% 26% 24% - -
3rd Quarter 19% 18% 54 52 48 % 43 92% 91 % 90 81 93% 83 27% 24% 27 25 ' - -
4tn Quarter 18% 17 52% 49 44 % 43 85% 83 85 77 89 4 80 26% 25% 26% 23 - -
1973 1st Cuarter 18% 17 49% 47% 43 41 85% 83 82 77 % 84% 79 26% 24% 25% 23'6 - -
2nc Cuarter 17% 15% 48 % 47 44 % 40 % 82% 76 81 % 73 % 33 75 26% 24% 241 21 % - -
3rc Quarter 17% 16 50 47 43% 41 85% 80 % 82% 74 31 % 76% 25% 23% 25% 21 % - -
4tn Cuarter 16% 13% 49 40% 40 37% 74% 72 72 % 63 76 67% 24% 20% 22 184 96 % 89 The Senes 0-4 25% Preferred Stock is traded in the over-the-counter market. We have been advised of scattered trading at onces ranging between $29 and $41 % per snare dunng 1979. Approximately 1.500 to 2,000 snares were traded during the year.
The Senes F. H L M,0, and R Preferred Stock are held pnvately.
Report ofIndependent Accountants To the Shareewners and Scard cf Directors of Long Island Lighting Company in our opinien. the financial statements acceanng on pages 19 to 29 present fairly ne 'inancial cosition of Long Is and Lightirig Comcany at December 31,1979 and 1978, and the results of its operatiens and the changes in its financial pos: tion for each of the five years ended December 31.1979. in conformity with generally accepted accounting principles consistently applied. Our examinations of these statements were mace in acccrdance with generally accected aucit:ng stancards and accordingly metuded such tests of the accounting recercs and such other auditing procedures as we considered necesary in the circumstances.
Price Waterhouse & Co.
Huntington Station, NY January 20.1980 18
Financial Statements
~~
Statement O f income W Year 5adec Cece?ce' 31 do trousancs of codars) 1979 1978 1977 1976 1975 Revenues Eiectnc $860,798 5738.339 $682.997 3589.665 $557.971 Gas 184,700 160 632 141.383 134 924 113.556 TotalPevenues 1,045,498 898.971 824.080 724.589 671.527 Expenses Cceraticns-fuel and curcnased ;cwer 478,416 365.307 350.465 292.707 290.455 Operatiens-other 118,6 t4 104.384 97289 89,263 80.720 Ma:ntenance 52,206 44.660 40 935 39.476 37,164 Deprec:aten 54,060 51.192 45.049 42.737 40.715 Ocerat:ng taxes 153,706 141.160 131.563 122.066 111.306 Federat inccme tax-current (2,267) 7.297 7.360 228 4.737 Fecerat inecme tax-ceferrec and ether 19,749 24.183 15 311 13.986 5.375 Total 6::enses 874,514 738.183 688.472 600.463 560.472 O_perating income 170,984 160.788 135.608 124.126 111.055 Other income and (Deductions)
Allowance for Nncs used during constructen - - -
50.681 36.345 Allowance ter other Encs used cunng constructen 58,086 47.294 44.654 - -
Other incorre and (cecuct: ens) 4,129 ' t .026) (142) 256 (814)
Feceralincome tax crecit-current (2,417) :,.496 4.973 3.727 2.431 ,
Feceralincome tax crect-ceferred '
and cther 17,855 9.471 11.655 5.079 123 Tetal Cther incerae and (Decuct;ons) 77,653 59237 61.140 59.743 38.085 income Before Interest Charges 248,637 220.025 196.748 183.869 149.140 Interest Charges and (Credits)
Irterest en long-:erm cet:t 101,849 91,195 80.555 66.864 54.264 Cther interest 7,119 5.720 5.030 5.436 7.596 Allcwance for bcrrowed Nnds used cunng constructen (22,034) (18.883) (21.147) - -
Interest cacitatized by trusts 26,496 3.562 - - -
Allowance for berrowed Ands usec cunng ccrstructon-trusts (26.496) (3.562) - - -
Total teterest Char;es 86.974 73.032 64 438 72.300 61.860 Not income 161,663 141.993 132.310 111.569 87.280 P eferrec stock civicend recuirements 32.851 30.688 27.717 24.732 20.296 income for Common Stock 5128.812 5111 305 siO4 593 5 36.787 S 66.984 Average Common Shares outstanding-(000) 53.366 45 670 43.399 34 437 29 949 Earned per Common Share 5 2.41 5 2.41 S 2.59 5 2.52 5 2.31 Dividends Deciated per Common Share S 1.76 3 1 70 3 1 63 3 1.56 $ t.50 See Nctes to Financ:al Statements.
19
Financial Statements Balance Sheet at cecemeer at on ecusancs ce cenarsi Assets 1979 1978 Utility Plant E'ectnc $1,568,311 $1.5C6.659 Gas 284,464 275.046 Common 72,351 71.273 Constructen work in progress 1,444,631 1.145.445 Nuclear fuelin process -
3.675 Constructen and nuc: ear fuel in trusts 242,201 165.503 3,611,962 3.167.601 Less- Accumulated cecrec:st;cn 526,992 426.8G5 Tctal Net Utilitv D' ant 3,084,970 2.680.736 Other Property and Investments Nonctility prcperty, pnncically at ecst 1,875 2.300 investment in subscary companies, at equity 379 385 Ctnerinvestments and cecos.ts 74,731 68.099 Tctal Ctner Precerty and Investments 76,985 70.784 Current Assets Cash 8,526 7221 Temocrary casn investments 3,480 3.000 Spec:al deposits 12,427 2.90S Note receivatie-construction trust - 48.229 Accounts receivacle dess allowance fer deuttful accounts et S3,147.000 and $2.413.000) 115,855 92.816 Accrued revenue on acccunts Dailed cimenthly 13,867 11.045 Materials and sucches at average cost 24,605 21.896 Fuel oil at average cost 42,320 23.108 Gas in storage at average c0st 24,323 18.222 Precavments 1,205 1.018 7ctalCurrent Assets 246,703 229.463 Deferred Charges E!ectnc fuel C0st ad;ustment ceferred 22,709 8.131 Other 28.210 27.599 7ctal Ce+ened Charges 50,919 35.730 Total Assets $3,459,582 53.016.713 20 i
l
Financial Statements Capitailzation and Llabilities t979 1978 Capitalization Long-term dect $1,274,722 51,175.662 Unamortized cremium and disecunt en cect 24 89 1,274,746 1.175.751 Preferred s!cck-redemot:cn recuired 294,100 226.950 Prefer'ed stock-nc redemetron recuired 160,090 163.499 Tctal Preferrec Stock 454,190 390 449 Commen stocx 301.116 257.372 Premium en cacital stock 520,324 442.353 Cacital s!ccx excense (30,138) (28.321)
Petared earnings 346,001 311.838 Tctal Common Shareewners' Ecuity 1,137,303 982.942 Tctal Cacitahzatien 2.866,239 2.549.142 Trust Obilgations 287,308 189.603 Current L! abilities Current matunties cf icng-term cett 20.040 37 Sinking Nnd requiremerts en creferred stcck 7,850 1.050 Nctes cayacle 24,836 -
Acccunts payable 96,383 129.285 Accrued tases. (including federal teome tax of S2.092.000 and $3.773.000) 32,467 31.403 Accrued interest 22,195 18.499 Custcmer deccs.ts 8,080 8.125 Divicends cayacle 30,864 25.984 Tctal Current L:abil: ties 242,715 214.383 Deferred Credits Accumulated deferred inccme tax reduct;cns 54,901 49.926 Cther 2,458 7.213 Tctal De' erred Cred:!s 57,359 57.139 Reserves for Claims and Damages 5,961 6.446 Commitments and Contingencies - -
Total Capitailzation and Liabilities 53,459.582 53.016.713 l See Nctes to Manc as Staten ents.
l 1
21
Financial Statements Statement of Changes in Financial Position *er year e-cea cece, eer 31 on t ousares et eenarsi _ .I 1979 1978 1977- 1976 1975 Source of Funds Operations Net inccme S161,663 5141.993 $132.310 $111.569 5 87.280 Pnne: pal ncncasn enarges anc icrec:ts) to inecme:
Decrec:at:en 54,060 51,192 45.049 42.737 40.715 Deferred and etner feceral income taxes 1,894 14.712 3.656 8.907 5.252 Alicwance for runcs usec cunng construct.cn (80.120) (66.177) (65.801) (50.681) (36.345)
Ctner 9,023 8.478 7.265 7.123 7.410 Interest cacitati:ec cy trusts 26,496 3.562 - - -
Ailcwance for corrowee funds used cunng ccnstructen-trusts (26,496) (3.562) - - -
Funcs Prov: cec trem Cceratices 146,520 150.198 122.479 119.655 104.312 Long-term Financing Long-term cett 119,100 75.287 85.000 150.375 170.000 Preferrec stccx 75,000 -
108CCO 38.500 50.000 Commen stock 121,999 127.862 120.325 90.558 88.445 Trust cengations 97,705 159603 30.000 - -
i other Decrease in working cacaal 11,087 29.534 763 - -
NYSEG reimeursements. cncr penccs. re:Jamespert - - -
16.254 -
Otner sources 2.719 2.046 6.181 1.461 2.423 Total Source of Funds $574.130 S544 530 S472.748 $416 803 S415.180 Use of Funds Ccestruccon expenc'tures $392,062 5292.519 $359 420 $314.125 $281.455 Nue: ear fuel expenc:tures (3,675) (42.169) 23.913 14.424 5.642 Ccnstruc ion and nuclear 'celin trusts 76,698 165.503 - - -
Less- Allowance for 'unds used cunng Construction 80.120 66.177 65.801 50 681 36.345 Total Constructen and Nue: ear Fuet Excencitures 384,965 349.676 317.532 277.868 250.752 Dmcencs on preferrec s!cck 32.215 30.651 27.223 24.459 20.474 Ovcenes en ecmmen stock 95,264 78.661 66.742 54.487 44.819 Recucticn of long-term cett 20,040 - - -
40.000 Pre
- erred s!cck CCnversions and retirements 11,259 2.937 44.995 8.549 2.026 Increase in wortong cacital - - -
39.031 40.404 E:ectnc fuel ecst aciustment defer -' 14.578 (6.801) (836) 995 41 Ctner investments anc ceces.ts 6,632 67.646 235 - -
Cactal stock excense 2,994 2.388 8113 3.217 5.261 Cost of remeval 2,367 4.074 1.510 3.220 1.908 Ctner uses 3,796 15.298 6.634 4.977 9.495 Total Use of Funds $574.130 $544 530 $472.748 $416 803 $415 80 Increase (Decrease) in Working Capital by Element Casn S 1,405 S (1.126) $ (609) $ 1 035 $ (5.843)
Temocrary casn nsestments 480 3.000 - - -
Scectal ceccs ts 9.519 (2.746) (9.293) 13.213 788 Acccunts anc notes receivatte (25,190) 45191 9.509 9.030 4251 Acc uec revenue 2.822 523 733 989 763 Ntatena's. sucplies. gas .n srcrage anc fuel 28,022 (4 315) 4412 11.344 7.543 Precayesnts 187 (126) (70) 598 (221)
Currect matunties en icng-term cett (20,003) (37) -
25.000 625 Sinong furc recu:rement en preferrec stcck (6,800) (1.C50) - - -
Notes Payacle (24,836) - - -
31.800 Acccunts cayacte 32,902 (58.585) (615) (9 681) 13.072 Accrued taxes (1,064) (4.591) (750) (8.840) (4.318)
Accruec +rterest (3,696) (2.584) (1129) (1.151) (3.057)
Castemer cecos.ts 45 174 834 28 (1.127)
Cmeencs cavatte (4.880) '3 862) f 3.186i (2.539) (3 872)
Net increase (Decrease) $ (11,087) 3 f 29 534) 3 (7631 5 39 031 $ 40 404 22
Financial Statements Shareewners' Equity at oece-cer3i necusares ot ecaarsi - - .
1979 1978 1977 *1976 1975 Statement of Retained Earnings Ba . .ce. January 1 S311,838 S279.157 5242.147 $209 524 S197.537 Acc-Net income for tne year 161,663 141.993 132.310 111.569 87.280 Less-Cost cf :ssuance of ret: rec pre'errec s ccx - -
1.335 - -
Less-Captal Stoc< & cense 1 - - - -
Less-Casn civ cencs cec:arec.
Pre +e< rec stock 32,215 30.651 27 223 24459 20.474 Ocm cn siccx 95,284 72 661 66.742 54 487 44 819 Ba acce Cecemcer 31 $346.001 5311 338 32'9157 5242 147 5209 524 Commoni Stock Par Vaiue S5 cer Share Shares autacr::ec 80,000,000 80.000.000 60.000.000 60.000.000 40.000.000 Snares outstanc:ng 60,223,283 51.414 352 44.041.453 37.639J85 32.073.338
- ncrease in shares cutstancing 8.808,931 7.372.899 6 402.C68 5 566.047 7.019.944 increases .n S5 Par va;ce $ 44,044 5 36.365 5 32.310 5 27.830 5 35.100
- ncreases .n Premium on cac: tai siccm 77,971 91.124 88.348 66.251 53.357 rereases n Captal stock excense 1.817 1.211 3713 3 217 5261 Preferred Stock Par Vadue $100 per Shars, Cumulative-Shares autnerizec 5,050,000 5.050.000 5.050.000 5.050.000 3.200.000 Shares outstanc:ng 3,770,403 3.064.993 3.024.360 2.464 3C6 2.549,795 Snares sucscr:cee 'O000 - -
5 % SeresS S 10,000 S 10.0C0 5 10.000 S 10.000 $ 10.C00 4 25% Senes D 7,000 7.C00 7.000 7.000 7.000 435% SenesS 20,000 20.000 20.0C0 20.000 20.000 4 35% Senes F 5,000 5.000 5.000 5.000 5.000 5's % Ser;es H 20,000 20 000 20.0C0 20.000 20.000 51 5 Senes i Convert cie 8,090 11.499 14.436 19.431 27980 812% Senes J 25,000 25.000 25.000 25.000 25.000 3 30% Senes < 30,000 30.000 30.000 30.000 30 000 7 40% Senes L' 33,950 35 000 35.000 35.000 35.000 3 40% Seres M* 35,000 35.000 35.000 35.000 35.0C0 13 00% Seres N* 'O.000 40.000 7 50% Ser.es C' 48,000 48.000 48.000 - -
S 50% Seres 9' 60,C00 60.0C0 60.000 - -
9 a0% Seres S* 75,000 - - - -
Tctal 23r vafue 5100 $377.040 53C6 499 5309 436 5246 431 5254 990 Par Value $25 per Share, Cumulative:
Shares autncnzec 7,200,000 7.200.000 7 200.C00 7200.000 7.200.000 Shares cutstancing 3,400,000 3 400.000 3.400.000 3.400.000 1.920.000 Snares sucscreec - - - -
80.000 52 47 Seres C' S 50,000 5 50 C00 5 50.000 5 50.000 $ 50.000 32 43 Ser es P 35.000 35 000 35000 35.000 -
7ctal Par vsice 525 85.000 35 000 35.0C0 95 0C0 50.000 Less-Soirg func requiremer.ts 7,850 1.050 - - -
~ctar : e'errec S!cck $454.190 3390 449 5394436 S33143 t 5304 980 mece c'cr~eca. rec.
See Notes to 42nc.at State ects.
23
Notes to for incoma tax:s, excect witn r:scect to Financial Statements the Shorer am Unit)in tne rescectve cenocs.the certon of AFC attnoutacle to funds provided cy common stock Note 1. Surnmary of Significant equity for the years 1975 and 1976, was Accounting Policies equiva!ent to 14% and 17% of inccme Theacccuntingrecordsof the for Commen Stock.
In compliance with the FERC'crder, Company are maintained in accer.
dance with the Unifctm Systems of effective January 1,1977, theCdmpany hc%tocated the portion of AFC re!adng Accounts presenbec by the Puclic to berrewed funcs to tne Interest Service Commission of the State of Charges secton of the Statement of NewYork(PSC)andthe FederalEnrgy Income. Penods pncr to 1977 have net Regulatcry Commission (FERC). been rec!assified.The Company utility Plant believes that such reclassificaton would te inapptcoriate since the Accitons to and rectacements of utility plant are recorded at onginal cost, allocation between the bcrrcwed and which inc!uces material, labor, over. etner components for prier pericos heacs, and an allCWance for the ecst of would not be comparacle to the Ocm-ponents of AFC determined subse-funds used dunng constructico (AFC).
The cost of renewals and betterments quegt to December 31,1976, cy using relat:ng to units of property is added to tne rERC formula.
utility plant.The cost of property replacec, retred er ctherwise disposed Depreciation of is deducted from utlity plant anc, gen. The provisions for cepreciation result eraily, together with dismantling costs ' rom the applicaten of straignt-line less any salvage,is charged to rates to the enginal cost, by groups, cf accumulated cepreciation.The cost depreciable procerties in service.The of repairs and minor renewals is rates are determined by annual age-life charged to maintenance expense. studies of deprec:able propertes.
Mass properties (such as poles, wire Cecreciation accruals were equivalent to 3% cf average depreciab!e plant cost and meters) are accounted for en for each of tne years 1975 through 1979.
an average unit cost basis by year cf installation.
Revenues Allowance for Funds Used Revenues are reccrded when billed.
During Construction Bil!ings are rendered en a monthly cr The Uniform Systems of Accounts bimenthly cyc!e basis.The Company define AFC as the net cost of borrowed acen.ies estmatea revenues fcr cus-funds for construction purpcses and a tomers billed bimonthly in the month reasonable rate ucon the utility's other in which they normally are not billed.
funds when so used. AFC is computed The Company's tanffs for e!ecinc monthly on that perton of construction service include a fuel acjustment workin progress (CWIP) which is not clause under which electric rates included in the Company's rate base.In charged to most customers are June 1976.the Company began ecm- adjusted to reflect enanges in the aver-putng AFC on its Shorenam Unit at a age cost of fuels and of certain reduced rate whicn reflects the inccme purchased power costs.The tax effect of the interest pcrten of AFC, Company's tanffs for gas service cen-and in 1978 the Ccmpany acepted the tain a comparable clause.
FERC method for calculat:ng AFC.
The average annual AFC rate. with- Deferred Electric Fuel cut giving effect to ccmpouncing er the Cost Adjustment reduced Shcreham net cf tax rate.was The E!ectnc FuelCcst Adjustment 8.9%,925%,928%. 9.72% and 9 99% represents the difference cetween for the years 1975 througn 1979, re- actualfuel ccsts and the fuelcesis i
scecuvelv. The Shcrenam net cf tax allowed in the Company's base tanff annual AFC rate, witncut giving effect to rates.The Comcany, to acnieve a pro-comocuncing,was7.34% 7.63%,7.93% per matching cf costs and revenues, and 821% for theyears 1976 thrcugh defers this c tference alcng with the 1979, respectivety. relatedincome tax effects to these Based uoan a five-year average of the future penods in wnien it mil be billed Company's cacitalization and ucen the to customers.The Company believes most current costs of preferred stcck that the PSC will centnue to permit the l anc Icog-term debt (without acjustment recovery of ceterred fuelccsts.
l l
l 24 l
Federalincome Taxes of Icng-term cect are amcrtizcc over amert:zcc anc reccveredin tna An acceterated c!Prec:ation metrcc. motiv:sof tnoissu:s Cac:talstock Cemeany s rates over swen years,tne tcgetner w tn ceprec:ation Wes wnicn ex::ense related to tnat cert:en of term of the Senes Q issue.
are sncrter than mese referred to preferred stock recuirec to ::e Recemet:en of Senes L. M. O. O. R sncer Cecreciat:cn. is usec fcr :nccme receemec:s Antten-ctf as an anc S Pre'errec Stock s proviced for tax purceses. Interest. pens: ens. taxes, aciustment!c reta:nec esmmgs when inr0ugn varying sirk:ng fura crevis: ens.
researen anc ceve!ccment 00sts. etc., the stock is ret: rec. certam of wnicn ecmrrenced m 1979.
wnicn are cnargec to c: art cr accumu. Tne aggregate amount of preferrec ....
!atec cecrec.at:cn fer 'manc:al state. Reserves for C! alms and Damages siccx recuirec to ce receemec m_eacn ment purocses. are cecuctec current:y Lesses ansmgfr0m cams aga.nstthe of the years 1980 througn 1984 is wnere perm ttec ey me tax raws. AFCis Company 'rcm extracr-Jrary stcrm 57850.C00. 57.350.000. 511.600.0C0, nct sucject to mcome tax. Procerty Icsses, and frcm certain ecu:pment 511.6C0.000 arc 538.038.000.
taxes are ceductec cn a ben care::asts. camage are pamany seifensurec. Pro- res::ectively.
.n contrast to tre fiscal year :: asis usec visions to the reserves are ::ased upon expenence, nsx cf Icss, and/cr scecific Note 4. Short-term Loans and for 'inancial statements. For inese anc simdar reascrs, taxacie mccme is less creers of the PSC. Compensating Balances '
than franc:al statement inccme ' he Ccmpany has authenty from Note 2. Retirement Plans FERC to issue up to a tctal cf Tne Comcany's general;;chey is to e ne Cemcany mamtams a pens.cn ret'ect as .nceme tax ex::erse me $250.0C0.000 in notes to tanks and amcunt cf mccme taxes currently cay- gan wnicn covers most emeicyees. ccmmerc:alca::er.The Company has i he tetai cests re'atec tc tne cians were estachsnec tank lir es of crec:t tctaling en s 'I e*u S11.694 000. 510;732.000. 59.712.0C0. 5140.000.000 at Cecemcer 31,1979.
y.rects c, tre...erences
,,,ce fc ::et,seen net
$8.370,000 anc u.::c.CCO fer the years Sank ! cans, wnicn uculd have teen 1979 :nrcugn 1975 (cf wrien 33.344.C00. cctamec at the lenceg ::anks' 52.904.000.52.821000.52.191,000 prevaihng cnme .nterest rate. generally ac cc . a c c csec n e anc 52.131,C00 were inc!cced m mature utnin 90 cays. The Company, The maicr items wnicn are part of'the ceferrec tax prevision are as fcdows: gusMcccstsuesceeweW psien ecsts are tcme by the mcw mfemal anangemems.
e income tax teref:ts resu!tmg from maintains ccmpensating blances, recuced ceprecaticn : eves permitted
- by ma e pa s m%s m en are not legally restncted, fund me costs accrued}. he actuaria!!y ging 6% ct the lines of crecit er tre Revenue Act of 1971 .
e incor e tax tenefits relating to cmecvale We vested beneMs at c afeesinlieutherecf.Netof average January 1,1979 (the date of the latest "f: cat," ccmcensatmg talances at A The ccreaseseferred fuel actuanal cost valuat'cr0
[n inves: exceecs tax tne fees Decemcer 31,1979. amounted to accumu!ated byment accrcxcately accreximately S3.175.000. No tank crecits ,n:tiated by the Tax Recuct:en $21574.M De eta %Nec pnct Act of 1975 from 4% to 10% cf eligit>- reans were cutstanc:ng at e:ther
- serwce ecst at me cate of melatest year-enc. The Ccmpany maintains
$reperty ac'citions 1cwacity, are andamcrt'zec ceferrec and limits of acmanahabam was accut ava:la::ie tank lines of credit to tackuo S 6 852.000. after a plan amercment 100% cf tne ecmmere:a! paper over tre average uves of relatec presert.es for financial accountog and m W8. e angs cutstancing.
rate-rra<mg purscses. Sucn ceferrec amcgzed snc anyovera3 -year Commerc:alpacerisissued at "efiCL- vances c:sccunt rates and usually investment tax crec:ts at Cecemcer 31 1979 anc 1979 amounted to matures within 30 to 45 cays. No Note 3. Capital Stock commscial pacer was wstancmg at 529.508 000 anc $2S 341.000. Of the 60,000.000 snares of res::ectmety. ane c.Owng 79 anc autnerced common stock. 865.999 mege G78- matmum aggegate ammt investment tax crec:ts allowatle uncer snares are reservec for sa:e to tre Fevenue Act of 1971 are accounted empicyees 2 682 'a snares ara cf smMen conewmgs at ag me for as a recucticn of federalincome tax commit'ec t 'o'ine E"Ltematic DivEenc mcmbenc was St21.M.M at expense. The crecit ;s ca!culatec on the Reinvestment P!an, anc 418.103 snares A@st G anc $9EM.m at tasis of a 4% rate ac::oec to ekg:bie are reserved for convers:cn of the Agst G 8,am me cah awages crc::erty accmons::ut suciect to Ser:es l Ccnvert tie Preferred Stock 9 acchcatie eccme hmitaticns. Tre tas:s at S19 35 per snare Tre Senes I 9*4 f* 6'CC 8'[5 # 31'$0' cf acccurt:rgfermesecrectswas rescecweiy Convert:cle Preferrec Stock .s nct e awcxcate weignted average mecif ec ::y PSC rate crcers. me ef'ect cens cered ~
-aated -
of wnicn nas been to recocnce ac-^untmhp'r5cer generany cerest rates (excwg me edects of ac'5iutiva c:cles.to nave a -
compensaMg calames and Mes of 52.224 CCC-1979 anc 586.0C0- a+fEt en eammgs : er snara ceWeesNn sgem tencwegs
~
1973 ct acc;ticnal crec ts fcr mancar ' ni Cecemcer 1977 me Ccencany acccuntog anc rate-maxmg ::cr;;cses. refurcec .ts 13% Sen'es N Preferre, wmde M ccannas.
2% and m,J.,escechey The utezaticn cf sucn acc;tronal Stecx utn the issuance of 7'50% tacec crec;ts for tax pur;;cses, newever. con- Senes G Preferrec Stecx. in accer-ccmmmens m a amer CRanxs trues to ::e su:::ect to tre ::rev:s:crs to ::revice to to 5250.0C0 000 on a carce utn a PSC crcer. tre cost of cf tre!memalRevenue Cece. ,ssuance of Senes N was enarged te r,e@mg cemas:s fc amxcat,ey Capitalization-Premiums, Discounts Fetamec Eammgs anc the cost ofissu- jatftcrtc ccftcuu c r '. se and Expenses ance cf Seres e and tne 58.000.000 cail cremium cf Senes N was c arged "m""
tment-^
Premiums er escounts and ex::enses re!atec tc tne issuance to Cac<tal Stock Ex::ense and is ce.ng 25
Note 5. Federalincome Taxes ThJ FacerJ ccome tar amounts cc1uced in t'o stremeat of inccme c.f*er ' rom tn3 amounts wnicn resut
- rom acciymginc stnutcry Fecerai ccom: tax rats to Net :Pcome be'oro cCome tax. Tr's reascrs are SS srown ceiow' (IninCusancs of collars) 1979 1978 1977 1976 1975
% of % of % of % of % of
. Pre-tas Pre-tax Pre-tax Pre tax Pre-tax Amount income A m our't income Amourt Ircome Amount leccme Amour't lecome Federal-ncome tax. ;:er . - - .
Statement of income - . .
Current S (2.267) $ 7.297 5 7260 $ 229 . S 4.737 inc:vced in etner income anc decuct,cns (current) 2,417 (3.498) (4.973) (3.727) (2.431) 150 3.799 2.887 (3.499) 2.3C6 Deferred and other (See Note 1)
Asset cecreciat:en range system 2,010 692 662 2.784 2.417 Fuel cost aciustments 1,502 (3.604) (1.3C9) (1.074) 331 Investment tax crec:ts-Tax Aecuction Act of 1975 2,385 11.461 6.329 5.909 3.790 Ctneritems net (4,003) 6.163 (2.C25) 1.288 (1.286) 1,894 14.712 3.656 8.907 5.252 Tctal 2,044 18.511 6.543 5.408 7.558 Net 'ncome 161,663 141.993 132.310 111.569 87.280 income Before Taxes $163,707 $160.504 5138.853 5116.977 $ 94.838 Star' tory Feceral income tax 3 75,305 46.0% $ 77.042 48 0% S 66,6J9 48 0% $ 56.149 48 0% $ 45.522 48 0 %
Recuctions in Feceralincome tax resulting from-bcess of tax cecree arien over bcck cecrec:ation (4,147) (2.5) (6.830) (4 3) (10.967) (7.9) (7.775) (6.7) (8.052) (8 5)
AFC, which cces not const'tute taxacie income (36,855) (22.5) (31.765) (19 8) (31.585) (22.7) (24.327) (20 8) (17.446) (18.4)
Costs enarged to clant but cecuctec current:y (11.567) (7.1) (10.142) (6 3) (10.143) (7 3) (6.670) (5.7) (4.245) (4.5)
Procerty taxes ceductec en a tien cate casis (961) (0.6) (2.266) (1.41 (1.911) (1.4) (3.775) (3.2) (2.803) (2.9)
Inte est capitalized by Trusts (12,262) (7.5) (1.666) (10) - - - - - -
Inves' rent tax crec:ts (9,811) (6.0) (5.973) (3.7) (10.257) (7.4) (7.984) (6.8) (4.198) (4.4)
Ctner ;tems, net 2,342 1.4 111 -
4.757 34 (210) (0.2) (1.220) (1.3)
Tctal Feceralincome tax expense 2,044 1.2% $ 18.511 115% $ 6.543 47% $ 5.408 46% $ 7.558 8.0%
At Decemcer 31.1979, the Ccmcany nac an investment tax crecrt carryforwarc for financial statement curocses. in accercance with PSC orcers. of accrox: matey $60.000.000 In accercance with the Company's accounting acticy, accrox:mately 543.000 000 of the cartyrerwarc will te ceferrec when utili:ec. The amount cf ITC carryforwarc availacle as crec:ts to tax returns for years after 1978 is
$87.000.000. These crecits exc.re by 1986 Note 6. Trust Obligations The Comcany entered into arrange- the matur:ty date for cne accitional year. just pncr to Icading the fuelin the ments wan Tn-Ccunties Resources The Constructicn Trust Ican is payacle Ccmpany's reacters er upon termina-Trust (Rescurces Trust). in Sectemcer according to a recay ment schecule with tien cf the Trust. Similany, the 1977, and Tn-Counties Ccns:ruct:en quarterly payments ceginning nct Companyis celigatec to arrange to Trust (Construct:cn Trust). in August eartier tnan March 31.1985 and ending reimeurse tne Construction Trust for 1978. crevieng for tne Trusts to not later than Jure 30,1988. The Trusts nuclear fuel anc construction just pncr finance. rescec: vely, the acquis: tion of may, with availacle funcs net to Nine Mile Point Unit 2 going :nto the Ccmcany's nue: ear fuel and :ts 18% immeciately needed for sucn financ:ng, operation.
snare of construct:cn and nuclear fuel make certain investments. :nctucing The Rescurces Trust and the Cen-ccsts for Nine Mile Point Unit 2.The investmentsin the Comcany's struction Trust interest en bcrrowings Rescurces Trust and tre Ccnstruction prem:sscry notes.The Trusts' total is calculatec, pnnc:cally at 105% of the Trust pnnc: pally nave revolving credit cbligatico of $287.3C8.000 at Decemcer prevailing pnme rate and commitment arrargements wnich tcgether witn 31.1979. is comonsed cf $242208.000 fees of 4 of 1% orless are calculated cena n term loans provice fcr ::crrow- fer f:nancing construe::en and nuclear en unusedlines of crect(based ucen ings cf ec to $135.000.000 and 'uel excenartures and 545,100.000 the respective Trusts' revetving crec.t
$300.000.000 respective!y.The utifi:ed cy the Comcany for general arrangements).The Trusts' interest enmary revciving crec:t !can of the ccrecrate pur::cses. costs of borrowings utilized to finance Pescurces Trust matures in Sectember The Comcanyis celigatecto arrange constructicn anc nuclear fuel are 1983 and cr0v:ces that the fencng to curenase nuclear'uel owned by the reflected in the Cemcany's Ccnstruc-t:anks may, eacn year, efect ic extend Rescurces Trus:. or heat' rem sucn fuel, tien and Nuc! ear Fueiin Trusts 26
accounts anc is c;cuctcc currcntly for sucptes of ed at thoicwest ecst to crojects. tao Ccmpany has mace tax curcoses en the Cemcany's censumers. Cesc.te tnis conclusien, sucstantial ieng-range cc-mitmerts tax retum. the Company reccgnizes. Inat recent for nuc. ear fuei. inc:uding contracts The Trusts' average annuaiinterest events. sucn as the incident at with Sckum Pescurces Corporaten rate (exc!ucing comm:tment fees > for Metrepetitan Ecisen Company's Three (a cevelecment stage ccmcany)for average corrowings of $231.550.000 Mde is:anc Nuclear Generatng Stat:en. 10 mdlien ecunds of uranium anc Sc9.C62.000 outstancing cunng the are having a natenwice imcact en ccncentrates. The centracts for years 1979 and 1978 was 13 2% and nucl ear cacitalinvestment to an extent uranium cencentrates crevice fee -
106%.respectvety Of thetctalaver- in targe part uncetermined. There can acvance cayments of $20.000.C{0-a e cerrowegs. $35.018.000 anc be no assurance that necessary $15.350.000 cf wnicn nas been parc by 539.303.000 reiatec to generai cercor- iicenses anc accrevais woice gramed ' me Cemeany anc tne caiance cy New are purposes for the respect:ve penocs. to tne Ccmpany by me apprcenate Ycrk State E!ectne and Gas Note 7. Cornmitments and Federal anc State govemmental Corporation. Bokum has notfiec the Contingencies agencies for the Comcany's nuc! ear Ccmpany that Sekum is in cefau.t The Comcany's excenc;tures for projects. The Company believes that uncer tne contracts provicmg for the constructen and nucl ear fuel for the uncer present statutes and regulations. cekvery of the uranium concentrates years 1980 througn 1984 as esumated the necessary licenses and accrova!s and also uncer the provisions of a at Cecemcer 31.1979. total will be received for me Shcreham and financing agreement previcing for acprcximately $2.2 billion and Nine Mde Pomt Unit 2 crojects. loans to Bckum cf $51.100.000 to assume tmeiy and acecuate rate On January 29.1980. a New York cevelec a uranium mine and to re9ef and financ:ng. State Scarc on E:ecmc Generaben ccnstruct an ore-crecessir'g mdl At Sucstantialecmmitments have been S.tng anc the Envircnment wnich had Decemcer 31,1979, the amount cwec mace fer me Cemcany's ccnstruccon been consicenng me acclicaten for the the Ccmpany by Sexum forIcans and program. :nc!ucing commitments fer nuclear generating staton at interest was $49.557.000. The !can me nuc: ear generat.ng statens at Jamesecrt voted to accrove the cen- bears interest at 10.5% per annum and Shcrenam and Nine Mi!e Point Unit 2 structen of an 800 megawatt ccal-fired is secured by, among etner ngnts. an wnicn are uncer constructon. Subject unit on Long Island. Before ccnstruc- assignment ofleases anc a mcrtgage to the resu!!s of contnuing rewew,the tion can begin, a final creer must ce on certain of Bekum's assets. The estmatec costs at ccmcfetion of the entered, appeats. if any, must be reement Shcreham Unit and me Company's exnausted. environmental permits terms proviceofforrecaymento the financing ac[LILCO's tcans snare of Nine Mi:e Point Unit 2 must be cbtainec and the un t must be and interest thereen from 1981 to 1986.
are $16 bdlien and 5388 rndfien. cesigned.The acplicaton for a cer- The Company has reccrdedits:cansto respectve:y. In 1979, the PSC initiated tficate for the constructen of the Sckum in Ctherinvestments and a review to consider the reascnable- propcsed Neu Haven /Stuyvesant depcsits. The Ccmcany believes mat ness of the costs of the Shorenam Unit Nuclear Power Stat.cn has been the assets secured uncerits several and the extent to which such costs cismissed by anctner S;tng Scard. centracts with Bokum provice snculd be included in It'e Company's A petton for reneanng is penctng. acequate prctecten forme Company's rate base. The Company is unable to Should the reheanng ce cenied, investment in Sckum. In accition, the evaluate me imelihood of an censideraten w!il be civen to an Company may, at its epten, cetermine unfeveracle cutccme Of the pro- appealto the courtsfhe Company to provide Eckum with uo to an addi-ceectng or to estmate the financial wdi request the PSC to grant appro- tiona! $1.300.000 at a rate based On imcact. :f any, ucen the Ccmpany. Cnate relief wnich will permit the the Company's ccst of the money it :s the Company's judgment that the Ccmpany to recover from customers, borrowed for sucn purposes.the ecsts have been prucentlyincurred in a tmely manner.its excenc:tures c:scursement of all but S211.000 cf arc that .t bebeves it can so fer costs incurred in connecten with wnicn is subject.in part, to the cemenstrate to tre PSC. Sub- tne Jamesecrt and New Haven / centnuation of certain mine and start:al commitments have also Stuyvesant prc:ects wnich cannet be mill actvities.
ceen made for me proposec nuc! ear utlized for cther eurocses. It is antci- The Company has also enteredinto generatng statens at Jamesecrt and cated that the PSC will grant the sutstantial lcng-range commitments New Hasen/Stuyvesant fcr wnicn requested re!ief. for fuel ano gas sucply. The Costs of regVatery accrevals are penc:ng. The The Company has, at Cecembe. 31, -
fuelarc gas succly are ncrmally Comcany, wnich is the scie cwner of 1979. excenditures fer CWIP cf recoverec from customers mrcugn Sherenam has a 50% interest;n $1.261.743.000 for Shoreham. provisicns in the Ccmpany's rate Jamesccrt and New Haven, an 18% S48.723.000 recresenung .ts 50% schecules. The Ccmpany teileves
- nterest :n Nine Mde Pcint Unit 2 and is interest in Jamesecrt. 5148.974.000 simdar treatment wiu ce accorded rescenste for Nnanc:cg its rescectve recresentng its 18% interest in Nine nuclear fuel ecs s. Fcr further snare of each cf the un.ts The Mde Pcint 2 and 534.211.000 ciscussion rescectng me Ccepany's Cemcany s stuctes centnueto succort recresentng its 50% interest in New constructen and fuel Ocmmitments, tre conc:usien mat the generaten cf Haven and excenc:tures f0r nUC:ect see cages 9-12.
e!ectnc:ty Oy nucl ear power wdl be fuet of $93.229.000 re!aung to mese There are currently pencing in the mere ecercmic anc mere comcatbie projects. In acciton to the S34 211.000 Pecera! ccurts before me U.S. Ecual with hea.th arc env renmental referrec to accse, the Cemcany nas Emptcyment Occertun ty Ccmmission stancards man generaten by fcssd recerced in Ctherinvestments and and the New Ycrk State Divisien of fueis. The Ccmcany merefcre cetteves cecesits 522 836.0C0 wnicn toget er Human Rignts. complaints by that ts capitalinvestment programs for wtn the relatec nuclear fuel br:ngs emoioyees atteg:nginat the Comcany nuc: ear generaten +acdites anc fuel its totalinvestment in New Haven has cisenminated aga:nst them cn me sucches are crucent and crevice the tc $62.245.000 of wnich 524.336.000 basis of race The Comcany believes mest reascnacie means cf meetng is inc:uced in Notes Payacle en it has mer.tencus defenses to these expectec cemancs 'cr elecmc power the talance sreet. complaints. but ;t carnet crecict the anc reciac:rg re!iance ucon impcrted in connecten with .ts nue: ear uitmate outccme Of these matters.
27
Note 8. Lorig-term Debt at December 31 1.ong-term Debt at Decerrcer 31 (in tncusancs cf ce!!ars)
Allof the First Mortgage Bencs are Rate ofInterest Sener Due 1979 1978 issued uncer the First Mortgage.The First Mortgage Bonds General anc Refunc:ng Bonds are issued uncertne Generalanc 3 % A 1980 s 20,000 s 20.000 Refuncing incenture (G & R Mertgage). 3% E 1982 20,000 20.000 The First Mcr gage is a direct first lien 3% F 1983 25,000 --25 000 en sucstantially ail of the Company'c 3% G 1984 15,000 - -.15.000 prCpert:es. The lien of the G & R 3% H 1988 15,000 15.000 Mortgage onsucstantra!!yallof the 4% i 1986 20,000 20.0C0 same propert:es is junior to the lien of 4'6 J 1988 20,000 20.000 tne First Mortgage. All First Mertgage 5 L 1991 25,000 25.000 Bonos. issuec on a 1 atterJune 1.1975, 4.40 M 1993 40 000 40.000 are held by the Trustee of the G & R N 1994 25,000 ' 25.000 4%
Mertgage as additionalsecunty for 4 55 0 1995 25,000 25.000 G & ri Scncs and are exc!uced from 5% P 1996 40,000 40.000
!cng-term dect because they do not create adcttional dect in the Company's 5% 0 1997 35,000 35.000 capital structure. 820 R 1999 35,000 35.000 9% S 2000 25,000 25.000 7% U 2001 40,000 40.000 7% V 2001 50,000 50.000 7% W 2002 50,000 50.000 8% X 2003 60,000 60.0C0 10 Y 1981 60,000 60.000 9% Z 1982 50,000 50.000 t 9% AA 1983 80,000 56.000 t 94 89 1984 90,000 44.000 t 9% CC 2006 70,000 63.000 t 8% DD 2006 50,000 50.000 t 8% EE 2007 85,000 50.000 t 920 FF 2008 42,000 40.000 t 9.75 GG 1999 73,000 -
1,185,000 998.C00 tLess-Decesited with Trustee of the General anc Refunding incenture as accitzenal secunty for General and Aeruncing 8cncs 490,000 303.0C0 695,000 695,000 Less-current matunties 20,000 -
Total First Mortgage Bends 675,000 695.000 General and Refunding Bonds 9% % Senes Due 1983 80,000 80.000 9% % Senes Due 1984 90,000 90.000 9% % Senes Due 2006 70,000 70.000 8% %SenesDue2006 50,000 50.000 8% % Senes Due 2007 85,000 85.000 9.20% Senes Due 2008 75,000 75.C00 9.75% Senes Due 1999 100,000 -
TotalGeneral and Refuncing Seccs 550.000 450.000 Other Long-term Debt 7%%-Authen:y Rnanc:ng Nctes 2006 30,375 30.375 7.8%- Authenty Financ:ng Ncte 2009 19,100 -
l 8%% Pmmisscry Nctes 1985 287 324
! Less-Current Maturty on 8%% Promissory Nctes 40 37 Tctal Other Leng-term Dect 49,722 30.662 Total Long-term Debt $1.274.722 $1.175 662 The angregate of the Ccmcany s !ct g-term cect cue in tt'e fwe years encec Decemcer 31.1954is:520.000.000 f1980). 550.C00 000 (1981 ) $72.000.000 (1982). $107.000.000 (1983) anc $107.000.000 (1984).
28
. l No'D9.SegmentsCf Business Tne Cer Cany is a cut:!ic ut!ity ccerat.ng cerncany ergaged in tre generaten.c stntuten. anc sa!e cf erectnc energy anc tre purenase.cistr:cuten. anc sa:e of natural gas.
1979 1978 Total Total 1 (in ncusancs Of cellars) Electric Gas Company E ectr:c Gus Ccmcay Operating Information _.
(Year encec Cecamcer 31):
Revem e S 860,798 $184,700 $1,045,498 5 738.339 516'O 632 5 898.971 Excenses (exc ucing mccrre tax) 698,648 158,384 857,032 573.589 133.t 14 706.703 Oceratrg incorae (tetcre incorre tax) $ 162,150 $ 26,316 3 164.466 5 164.750 5 27.513 5 192.268 '
AFC anc etner 62,215 46.268 interest charges 86,974 78.032 inccme taxes-ccerat:ng 17,482 31.480 Inccr e taxes-noncceratirq crecit 15,438 12.969 Net :ncome per accomcany!rg State-est of 'ncome $ 161.663 5 141.993 Other information iYear enced Cecemcer 31):
Cecrec.aten excense $ 47,872 5 6,188 3 54,060 5 45.217 5 5.975 S 51.192 Cacca excenc:tures for construct cn anc ruc ear'uei 450,549 14,537 465,086 407.032 3 821 415.353 investment Information
( At Cecemcer 31);
Assets (a) $2,921,914 $246,676 $3,168,590 32.492.055 5234.111 52.726.166 Ncnut.hty piant 1,875 2.300 Ctrer .nvestments (b) 74,414 358 75,110 52.726 365 68.484 Assets utt:ec for overall Comcany ccerances 214,007 219,763 Tctal Assets $3,459.582 53.016.713
<ai nc:uces cet vtaty ctant anc ce'errec crarges (exc:ucrq ccmmentraatena's and s ccries. accruec revenues. gas in sterage anc 'Let
.cl Ccrs:st rg of. n 1979. $49 557.000 Eckum Aescurces Ccrccraten. 524 2000 Neu ~aven Ur.ts. 5379 000 sucscary ccr cenies :521 c00 e ectnc.
5356 CCc gast $338.000 ctrer nvest-ents.anc n 1978. 524 595 000 Scxum 9escurces Ccrecration. 328.!310C0 New wasen Urvs. S355 0C0 s, cscary ccccany. $14 356.000 Tr<-Ccunt es Pescurces
- rust. anc S417.000 cter investments Note 10. Quarterly Financiallnformation (Unaudited)
Income fer Earnec cer Operat;ng . Operating Net Commen Common
(!n incusarcsof cocars) Revenues income inccme Stcck Snare Frst Cuarter 1979 $266,031 $49,610 $46,965 $39,305 $0.76 1973 247.390 48.919 45.546 37.280 0.36 Seconc Ouarter 1979 231,682 36,177 33,235 25,599 0.49 1973 203.259 34.339 29.539 21.854 0.49
- Nrc Cuarter 1979 291,953 56,673 53,707 45,587 0.87 1973 238.472 49256 43.540 35.863 0 30 Fourtn Cuaner 1979 255,832 28,524 27,756 18,321 0.32 1979 209.350 28.274 23.368 15.703 0.32 29
Nat)11. Supplementary Information At Decemcer 31.1979, tha ecst of Concerning the Effects of inflation procerty. plant and equipment, net cf (Unaudited) accumulated deprec:ation, restatec for Througneut the decades fellowing inflation sint.e year of excenc:ture. was Wcrid War 11. the utility incustry has $4.5 billion while h:storical ccst net of constantly pointed cut to ec0nomistc. accumulated'depreciat:cn was $3.1 regulators and law maker.that biilion.
-~
calculating decrec:ation on the onginai cost of the utility plant would not perm;t Effect of inflation on Certairt Assets the recovery of the cost r6 quired to and Liabilities replace a piece of equ:cment wnicn Cunng periocs of inflation, monetary became obsolete er fully decrec:ated if assets such as cash and receivables any degree ofinflation were Icse their purchasing power. S;milarly, expenenced over the life of tne monetary liabilit:es such as long-term property.The solution suggested by debt can be a benefrt because they will the incustry was to calculate be recaid in dollars having less pur-depreciation en the reproduction cost chasing power. The net menetary of existing facilities. cr to use a amounts owed by the Company dunng decrec:ation rate whicn reflects the year resu;ted in an unrealized benef;t inflat:en. In an attempt to have of $184 million. The Company's net informaticn avadable to interm assets (tetal assets less total liacilities) investors of the consequence of this at year-end ef $1.6 cillion wnen restated inflationary erosion thrcugneut the in average 1979 deilars amount to business world, the Financial $1.5 billion.
Acccunting Standards Board and the Secunties and Excnange Commission Effeet of inflation on Common Stock have developed certain standards for Dividends and Market Price quantifying and providing this Cash dividends decfared per information to investers. While we ccmmon share in 1979 were $1.76.
believe the concept has ment if it leads Dividends declared in onor years to wiser governmental decisions as to restated in terms of 1979 purchasing taxation and utility regulation, we wish power (average 1979 dellars) for the to point out to our shareowners the years 1978 through 1975, respectively, thecretical nature of this information, would have been $1.89. $1.95. $1.99 and to suggest caution in its use for and $2.02 per share. The average the purpose of making investment censumer price indices for the years decisions in the utilty field and for 1979 through 1975 were 217.4.195.4 companng one company to ancther in 181.5,170.5 and 161.2. respectively.
terms of expected future performance. The market price per common share The data which follows, adjusted for restated in year-end 1979 dellars forthe generalinflation, was developed by years 1979 through 1975 would have restating the historical cost of property been $14.63. $19.52. $22.98. $24.04 plant and equipment (by approximate and $21.92, respectively.
yearof expenc:ture),theielated accumulated depreciation, and 1979 depreciation expense using the Consumer Price index for All Urban Censumers.
Effect of inflation on 1979 Net Income and Common Stock Earnings Per Share
( Average 1979 Oci:ars)
(in tncusaf'cs of collars)
Net inceme as shewn en the Statement cfinecme $161663 increase in cecrec:ation excense it scrustec for infiat;cn 4601 Net inceme as ac!ustec s115652 Earnec cer Ccmmen Snare as ac:usted S 1.55 Effect of inflation on Net Plant Investment The effect of 1979 inflation, cf accut 13%.onthe Company's January 1.1979 undeprec:ated plant investment. ess the $46 million increase in deprec:ation excense shown acove amounted to
$306 million. If this were to be acciied as a less in 1979.to Net inccme as adjusted. t would have resu!!ed .n a net ! css of $191 millicn.
30
Hist:ric:1 Statistics Electric Operating income onincusanes ce cesarsi --
1979 1978 1977 1976 1975 . 1974 1969 i Revenues ,
Res: cent:al $ 400,936 $348.307 S326.035 S284.774 S266.077 5232.431 S101.097 i Commerc:a1 and lncustnal 393,040 337.521 315.952 270.513 256.762 223.204 87.985 l Street anc hignway !,gnting 12,209 12.743 12.817 12.619 12.472 10.869 8.626 Ctrer cuctic authertes 15,240 13.615 13.647 11.005 11.988 10.680- 2.465 Otner utilit:es 564 921 1.287 543 725 731 435 Cther 5,949 4.885 3.578 2,747 2.228 709 83 System revenue 827,938 717.992 673.316 582.201 550.252 478.624 200.692 Pcwer cocis 32,860 20.347 9 681 7.464 7.719 7,710 5.852 Tctal Revenues 860,796 738.339 682.997 589.665 557.971 486.334 206.544 Expenses Ocerat:cns -fuel and curenased cower 389,622 294.911 290.576 238.185 236.329 219.406 34.190 Ocerat.cns -cther 89,071 78.328 72.860 66.101 59.182 52.841 31.290 Vaintenance 43,587 37.086 32.665 32.501 30.164 24.803 16.431 Decrec:at:cn 47,872 45.217 39.451 37,399 35.267 32.604 22.728 Operatog taxes 128,496 118.047 109.285 100,102 91.326 79.925 38.999 Feceralinccme tax -current (7,816) 1,110 4 800 (4.398) 5.655 (3.098) 15.235 Feceral inccme tax -ceferred and other 18,933 24.249 15.399 13.752 3.695 5.195 (324) 7ctal Ecenses 709,765 598.948 565.066 483.642 461.618 411.676 158.549 Operating Income $151,033 S139.391 $117.931 S106.023 S 96.353 S 74.658 S 47.995 Gas Operating income onincusancs et ccitars) l 1979 1978 1977 1976 1975 1974 1969 Revenues l
Resicent al-Scace neat;ng* $ 93.077 $ 88.168 5 75.626 S 74.225 5 61.592 S 52.308 5 38.957
-cther 23,861 21.098 18.672 17,734 16.672 14.988 12.324 i Ncn-residential. hrm-scace neating' 32,903 30.726 25.505 25.394 20.118 17.229 11.620 !
-ctrer 17,383 14.742 12.490 11.874 10.685 8.927 6.597 Tcta15rm sales revenue 167,224 154 734 132.293 129.227 109.067 93.452 69.498 Interruct:c e 15,674 4.127 7.247 4.217 2,980 4564 2,710 7ctai system saies revenue 182,898 158.861 139.540 133.444 112.047 98.016 72.2C8 Ctner util.t.es 1,467 1.485 1.463 1.462 1.463 2.126 1.400 Tctai sa!es revenue 184,365 160.346 141 003 134.906 113.510 100.142 73.608 Ctner revenue 335 286 30 18 46 27 6 Tetal ccerating revenue $184,700 S160.632 5141.083 $134.924 S113.556 $100,169 3 73.614 Expenses Ccerat: ens-Net 88,794 70.396 59.589 54.522 44.126 31.310 21.359 Ccerat: ens-otner 29,573 26.056 24.429 23.162 21,538 18.984 15.C49
\taintenance 8,619 7.574 8.270 6.975 7.000 6.346 3.368 Decrec;at on 6,188 5.975 5.598 5.338 5.448 5.368 4.633 Ccerating taxes 25,210 23.113 22.278 21.964 19.980 17.983 11.280 Fecera! .nceme tax-currem 5,549 6.187 3.C30 4626 (918) 2.386 3.962 Fecerahncome tax-ceterrec and etner 816 (66) (88) 234 1.680 (151) -
TctatEtcenses 164,749 139.235 123.4C6 116.821 98.854 32.226 60.151 Operating income $ 19,951 S 21.397 5 17.677 $ 18.103 S 14702 S 17 943 3 13.463
"'n '"4 "eatPg O' ass.hC30Crs. !"4 fevenues snCwn ccker til gas usec, r'C:Uc:ng r'ea!1PQ Gse.
31
i Common Stock Data 1979 1978 1977 1976 1975 1974 1969 inceme for common stoex (SOCO) $128,812 5111.305 $104.593 S 86.787 S 66.984 5 47.721 S35.324 Average commen shares outstanding (CCO) 53,366 45.670 40.399 34.437 28.949 23.565 18.2C9 Earned per commen snare $ 2.41 S 2.44 $ 2.59 5 2.52 5 2.31 S 2.03 S 1.94 Dividencs paid per snare $ 1.74 5 1.68% $ 1.61 % 5 1.54% S 1.49 5 1.46 iS~i .28%
Bock value per snare at year.end $ 18.88 5 19.12 5 18.70 S 17.93 S 17.19 S 17.81 $ 15.40 Commen snareewners at year.end 151.752 143 267 130.018 123.057 116.008 102.251 82.940 Operating Ratios 1979 1978 1977 1976 1975 1974 1969 Percent of Total Revenues Etectr!c 82.3 % 82.1 % 82.9% 81.4 % 83.1 % 82.9 % 73.7 %
Gas 17.7 179 17.1 18.6 15.9 17.1 26.3 Percent of Electric Revenue Operations excense-fuel and purchased power 45.3 % 39.9% 42.5% 40.4 % 42.4 % 45.1 % 16.5%
Oceratens expense-cther 10.3 10.6 10.7 11.2 10.6 10.9 15.2 Maintenance excense 5.1 50 4.8 5.5 5.4 5.1 9.0 Tctal Oceratens and Maintenance Excense 60.7 % 55.5% 58 0% 57.1 % 58.4 % 61.1 % 39.7%
Ocerat.no !ncome 17.5% 18.9% 172% 18 0% 173% 15.4% 23.2 %
Percent of Gas Revenue Operatens expense-fuet 48.1% 43 8 % 42.5% 40.4 % 38.9 % 31.3 % 29.0%
Operatens expense-cther 16.0 162 17.3 17.2 18.9 18.9 20.4 l Maintenance excense 4.7 47 5.9 5.2 6.2 6.3 5.3 Total Ocerations and Maintenance Excense 68.8% 64.7% 65.7% 62.8 % 64 0% 56.5 % 54.7%
Ocerating income 10.8% 13 3% 12 5% 13.4% 12 9 % 179% 18.3%
Percent of Total Operating income Before income Taxes Eiec:nc 86.0 % 85.7% 87.0% 83.4 % 87.2 % 79 2 % 78.3 %
Gas 14.0 14 3 13.0 166 12 8 20 8 21.7 Operations and Maintenance Expense Details ontrousanes oreenars) 1979 1978 1977 1976 1975 1974 1969 Tctal payrcil and emcicyee cenefits $150,479 S139.334 5125.013 $118.379 $107.400 $100.008 568.756 Less -Charged to constructicn and Other 49,065 47.367 39.873 37.558 32.888 31.335 20.992 Cnarged to ccerat: ens 101,414 91.967 86.140 80.821 74 512 68.673 47.764 Fuels-electnc cperatens 295,428 244.546 258.988 216.264 228.151 224.105 33.942 i
Fue!s-gas ccerations 88,794 70.396 59.889 54.522 44.126 31.310 21.359 i Purcrased power cests 108,772 43.564 30.752 22.916 8.219 5 664 248 E:ectne fuel ecst aclustment ceferred (14.578) 6.801 836 (995) (41) (10.363) -
7ctai Fuel anc Purcnasec Pcwer 478.416 365.307 350.465 292.707 290.455 250.716 55.549 All ctner 69.436 57.077 52.084 47.918 43.372 34 301 18.875 Tctal Oceratens anc Maintenance 5649.266 5514.351 5488.689 5421.446 3398 339 S353.690 $122.188 Emcioveas at Decemcer 31 5.563 5.442 5.381 5.444 5.446 5.426 5.468 l
l l
32 l l
Electric Operations ~
1979 1973 1977 1976 1975 1974 1969 Energy-mukces of kWM Net generat.cn 11.085 12.739 12.710 12.450 12.354 12.795 10 710 D *er curenasec andtscici-net 2,636 980 889 268 159 (39) (732) 7ctal system requirements 13,721 13 719 13.599 13318 13.013 12.7C6 317j" Ccmcany use anc unac:curtec for (1.254) t12821 f 1.225) I1 326) (1.301 J 1.235) 977) system sares 12,467 12.437 12.374 11 992 11.712 11.421 9.001 Po.ver cect saies 852 790 346 250 290 314 753 Totai Sa'es 13.319 13 227 12.720 12 242 12.002 11 735 9 754 Peak Demand-net MW Stat cn coinc: cent cemanc 2,718 2.599 2.994 2.566 2.597 2.553 2.065 Purenasec or a scic) 201 98 113 153 335 246 (60)
Svstem Pew Cemard 2.919 2.997 3107 2 719 2.932 2199 2.C05 Capability at Time of Peak-net MW L:LCO stat,cns 3.842 3.342 3.709 3.727 3.727 3.457 2.362 F-rm :urerase cr isa1e 108 126 121 136 39 -
(78) 7ctal Cacacatv 3.950 3 963 3 530 3 863 3 316 3.457 2.294 Fuel Consumed for Electric Operations Coal-thcusancs cf tons - - - - - -
107 Cil-thousancs ct :arrels 16,671 21.017 20.669 20.297 21.14? 20.773 15.035 Gas-trcusancs of mcf 10,909 75 1.980 1.195 1227 3.444 11.S92 Tctas-tacns et Stu 115.376 131.096 130.904 127244 131.135 131.414 109.815 Cen:s cer mecn Stu 256.1c 186 Sc 197.9c 170.0c 174Cc 170.Sc 30.9c MJls Oer kWh cf net generaticn 266.5 1920 20.38 1737 1715 17.52 3.17 seit rate-9:u cer net AWh 10.480 10 304 t o 299 10221 10.202 10 271 10.253 Gas Operations 1979 1978 1977 1976 1975 1974 1969 Energy-:ncusancs Of mcf(1.000 Stu)
Naturai gas 46,799 44 611 44.103 46 034 42.552 47.176 45.267 Vanufa :urec gas anc :nange :n s:crage (4) 19 (11) (77) ICS -
18 70 tai natural anc r anufac:ured gas 46,795 24.630 44.092 45.957 42.657 47.176 45.2S5 Gas scic - - - - -
(349) -
7ctai sy stem reccirerrents 46,795 44 630 44 092 45.957 42.657 46.327 45.2B5 Ccmcany use anc urac cuntec fer (3.170) (2.596) (1.377) (2.809) i2.143) (2 270) (3 C84)
Svs:em sales 43.625 42.034 42.715 43.148 40.514 44557 42 201 Sa:es to ctrer utet.es - - - - -
349 -
7ctai Sa:es 43.625 42.034 42115 43 146 40.514 44 9C6 42.201 Maximum Day Sendeut-Tcf # 1 C00 Stu) 336.996 303 344 340 624 325826 2'3 100 301 500 265 700 Capab611ty at Time of Peak-mcf :er :ay Naturaf gas 307.200 3C3 500 326.500 326.5C0 328 900 314 700 285.600 Va uta :arec LP cr LNG ;as 142.300 142.300 1483C0 143 3C0 148 300 153 300 79 6C0 7cta; Catac.14tv 449.500 4455C0 474 5C0 474 3C0 47 200 463 CC0 265 200 Natural Gas Purchased E'ec:rc cceratecns-thousancs cf mc! 2.726 75 1 973 1.195 1.227 3 na 11 592 Gas c:eraticns-tscusancs of mcf 46.103 43.967 44638 45.690 42.535 46217 44 372 70!al Natural Gas P ,r: asec 48.829 u 042 46 616 46 285 43 762 50 261 56264 Calendar Degree Days i53% ear ave a;e 5.095 l 4.622 5.432 5.173 5 373 4 729 4 921 5.029 1
33 !
1
Electric Sales and Customers 1979 1978 1977 1976 1975 1974 1969 sales-miihens of kWh 4
Resscential 5.599 5.559 5.620 5.486 5.334 5.185 4.131 Commercial and tncustnal 6,291 6.259 6.120 5.905 5.757 5.621 4.442 Street and nignwa/hgnting 188 188 189 190 182 187 .154 Otner suche autnertes 370 399 397 386 405 394 - _ 224 Other ut;hties 19 32 48 25 34 34 50 System sales 12,467 12.437 12.374 11.992 11.712 11.421 9.001 Power occi sales 852 790 346 250 290 314 753 Tctal Saies 13,319 13.227 12.720 12.242 12.002 11.735 9.754 Customers-montnly average Resicential 806,325 798.288 791.8C8 784.359 776.178 766.612 702.273 Comtrercial and industnal 81,955 81.071 80.205 78.535 77.317 76.108 66.547 Others 4,137 4.014 3.881 3.882 4.027 2.790 3.355 Customers-total menthly average 892.417 883.373 875.894 866.776 857.522 845.510 772.175 Customers-tcral at vear enc 892,772 885.591 877.022 869.126 859.527 S48.236 776.680 Residential kWh per customer 6,944 6.964 7.C98 6.994 6.872 6.763 5.882 Revenue cer kWh 7.16e 6.27c 5.8Cc 5.190 4 99c 4.48c 2.45c Commercial and Industrial i kWh cer customer 76,762 77.204 76.309 75.197 74.455 73.849 66.755 l Revenue per kWh 6.25c 5.39c 5.16c 4 Sac 4 46c 3.97c 1.97c j Gas Sales and Customers 1979 1978 1977 1976 1975 1974 1969 Sales-thousands of mcf (1,000 Stu)
Pesicental-space heating
- 22,874 24.C85 23.887 24.357 22.544 23.023 21.661
-ctner 3,496 3.386 3.396 3.390 3.368 3.359 3.260 Non-res:dential-firm-space heating
- 8,746 8.851 8.746 9.092 8.370 8.780 7,906
-ctner 4,297 4.155 4.105 4.201 4.217 4.372 3.553 Tctal firm sales 39,413 40.477 40.134 41.040 38.499 39.534 36.380 Interructible 4.212 1.557 2.581 2.108 2.01 5 5.023 5.821 7ctal system sales 43,625 42.034 42.715 43.148 40.514 44.557 42.201 Other utiltes - - - - -
349 -
7ctat sales 43.625 42.034 42.715 43.148 40.514 44.906 42 201 Customers-menthly average Resicential-scace neating' 139,671 137.486 137.580 137.724 137.461 136.110 115.941
-ctner 217,173 219.062 219.929 220.769 221.602 222.413 235.042 Ncn-resicential-firm-space nesting
- 17,514 17.361 17.5C5 17.537 17.623 17.800 15.413
-ctner 12.867 13.026 13.218 13.443 5 246 13.9C6 13.897 7ctat firm custcmers 387,225 386.935 388 232 389.473 390.332 390.229 380.293.
Interructibe 76 88 91 92 94 96 66 Customers-tetal menthly average 387,301 387 C23 388.323 389.565 390.426 390.325 380.359 Customers-tetal at vear enc 387,310 386.091 386.830 388.147 389.122 389 260 380.605 Degree days-cided 4.612 5.352 5.277 5.277 4.660 4.911 4 988 Residential mcf per custcmer 73.9 77.1 76.3 77.4 72.2 73.6 71 0 Pevenue cer met S 4.43 5 3.98 5 3.46 S 3 31 S 3.02 S 2.55 $ 2.C6 Non-residential-firm mcf cer customer 429.3 428.0 418.2 429.1 402.5 414 8 391 0
- evenue cer mcf S 3.85 5 349 $ 2 96 3 2.80 5 244 5 1.99 $ 159
- n tne aeanng c: ass.t.catcrs. the sa'es snewn ecver att gas usec. .ne:uc.ng nennest.ng use.
34 .
I
Balance Sheet atreuuces ot:caarsi 1979 1978 1977 1976 1975 1974 1969 Assets Ut2y Aant $3,611,962 33.167.601 32.775 231 32.398.900 32.097.019 51.825.666 St.103.042 Less- Accurau!atec cecrec:ation 526,992 486.865 456 019 413.3C5 377.720 349 935 223 660 Tctal utsty P! ant 3,084,970 2.580.736 2.319.212 1.985.595 1.719 299 1.475.731 37 0 &2 Ctner Precer y anc investments 76,985 70.784 3.972 3.803 3.892 1.193 672 Cur ent Assets 246,708 229.463 136.462 193.780 147.566 140.285 62.631 Oeferrec Charges:
E'ectne fuel cost ac;ustment ceterrec 22,709 3.131 14332 15,768 14.773 14.732 -
Ctn ar 28,210 27.599 19.967 18.775 17091 7.548 2.737 Tctal Assets $3.459,582 S3 016.713 52.546.545 $2 207 721 51 902 621 51 639 489 S 942.472 Capitalization and Liabilities Cac.tancat:en Lerg ter .A $1,274,722 31.175.662 31.100.375 S1.015.375 5 865.000 3 735.000 $ 470.125 Unamcrt. .4 crermum anc osecurt on cect 24 89 1.629 2.602 2.475 2.614 1.582 Preferree stock-rececct.cn recuired 294,100 226.950 229.000 160.000 160.000 110.CC0 -
Pre + err a s:ccx-co recemetien recuirec 160,090 163.499 166.436 171,431 144.980 147.006 92.189 Ccmr in stccx anc cremium 821,440 699.425 571.436 451.078 356.997 268.540 164.051 Casta stccx excense (30,138) (28.321) (27.110) (18.397) (15.180) (9.919) (5.000)
- eta:nec eamirgs 346,001 311.S38 279 157 242.147 209.524 187537 121 562 Tctal Cactan:aten 2,866,239 2.549.142 2.319.922 2.024 236 1.723.796 1.440.778 S44 8C9 Trust Obigat crs 287,308 189.603 30.0C0 - - - -
Current L amisties 242,715 214.383 143.348 138.403 141.220 174 343 85.978 Ceferrec Crec.ts.
Accumulated ceferred income tax tecue:.cns 54,901 49.926 42.835 35 264 27.519 19891 8.209 Ctner 2.458 7.213 2.008 2.640 3.171 799 341 70tal Ce'errec Crec:ts 57,359 57139 44843 37.904 30.690 20.690 S.550 Aeserves ter C:a.rns arc Camages 5,961 6.446 7.932 7.178 6 915 3.678 3.135 Tcta:Caota! cat:cn and Liaevit:es $3.459.582 S3 016.713 S2.546 545 52 207 721 51 902.621 51 639 483 S 942.472 35
Construction Expenditures on: cusancs et coaarsi 1979 1979 1977 1976 1975 1974 1969 Electric Procuction 0ncludes censtruct:en trust) S362,689 5321,181 $279.207 5249.045 52'5.512 5169,043 524.643 Transrnssion 25,991 31.865 39.788 27.466 25.770 29.234 10.136 Cistreutron: ---
- New ::us. ness facities 9,704 9.537 10.871 9.907 9.497 11.195 - - 13.127
- Ctrer 'ac:hties 19,163 16.566 15.400 15.753 17,923 23.712 15.884 General 1,617 2.71 6 1 502 2.016 936 1810 1.951 Total E!ectnc 419,164 381.865 346.768 304.187 269.638 234.994 65.743 Gas Production and stcrage 396 483 525 486 279 ' 75 2.494 Trarsmission and distnbution:
- New ::usiness facil: ties 5,512 1.559 1.C83 303 530 1.787 5.422
- Ctrer 'ac:ht.es 5,338 5.196 5.507 5.101 6.118 4.652 5.248 General 2.099 906 1.133 938 264 500 725 Tctai Gas 13.345 8.144 8.248 6.829 7.191 7.014 13.889 Common Operations centers - - - -
11 97 1.480 Otrer 7,037 3.999 4.404 3.110 4.615 2.070 1.003 Tctal Commen 7,037 3.999 4.404 3.110 4.626 2.167 2.483 Tctal Construction Emenctures $439,546 S394.008 S359.420 $314.125 5281.455 S244.175 S 82.115 Retirements of Utility Plant S 19.860 $ 23 420 5 7.002 S 10.387 $ 17.400 S 8.787 5 13.364 36
Direct ~rs Nathaniel M. Giffen Eben W. Pyne William J. Casef Weds Ocunset to Pegers Ona.rman et:ce Scarc Senior v.ce P esicent La d rm anc Cn:ef Execut've CMicer C.t:carw. N.A.
William J. Catacoshos p:tc4 Coun:y :ecers' Wilfred O. Uhl sa'<ings anc Loan =,es. cent Ona rman anc Assecaten On:et Executive Ctticer Lcng is:anc egrting Comcany~
Accuec Dgital Cata systems. inc. Lionel M. Goldberg Phyllis S. Vineyard ~~
tectrentCs Vice P es: cent Ve -*e Edward C. Duffy Aexancer i A;exancer. mc. sf 3,r ,,,c ,
insurance Healtn Cccrcinatng Petrec vice Cna.rman cf tne Scare Leng :stanc Lgnt.ng Comcany John D. Maxwell Ccunci Onairman anc o. rec:or voiuntary Nenprof t Winfleid E. Fromm <cumcr;en Carc. P'anning Agency Vrce P asiceat V'ce Presicent anc Drec:cr Eaton Cor::crat en Dewers Cnemco. Inc.
zectrcnics Manufactunng Charles R. Pierce Cna.rr an et ne Scarc aac Chef Esecut;ve Cff cer Long is:ano Lgntry Cor cany Of*icers Charles R. Pierce Joseph G. Acker Michael Czumak Cnairman ot tne Scarc V-ce P esicent
. Ccrtrciler anc Cnief Executive Cf'icer Transmiss:en/ Ds:r.::ucer, arc S'fV'ce C;:eranens Edward W. Eacker Wilfred O. Uhl Treasurer Presicent Hugh P. Boylan Raymond J. Forrer Charles J. Davis yce,Pjs g ent Assec: ate Centroser senior vee P es.ce t John J. Keamey, Jr.
Eng.neenrg anc Pre;ect Matthew C. Cordaro e
.ecretary Management vice President James W. Dye, Jr. Eq.neenng Kathleen M. Brown Ass:stant secre ary Senior vce P esrceat Ira L Freilicher Cceratices. Transmiss:ce/ vice Pres: cent Os:n::ut:en anc Purcnas.ng Puetic Af' airs Edward M. Barrett Frank C. Mackay John R. Gummersall, Jr. Generai Counsei senior vice A esicent Vrce Pres. cent Edward J. Walsh, Jr.
Commere:al Cceracons Operations anc Constn.cten Gererai Atterrey Thomas H. O'Brien Matthew S. Procelli Francis M. Walsh sener Vice P es. cent vice Pres; cent Genera:Caims Attorney Finance Emcicyee Peiatens John J. Russell vice P esicent Castarrer Ae ancns Andrew W. Wofford vice P es; cent P oiec:Managen ent
4 i
! COVER OUR SERVICE AREA INVESTOR NOTl!S I
l l
,. With the largest and most diverse ser. Annual Meeting vice terntory in New York State. Niagara The annual meeting of sto:kholders will
$btyw.,g Mohawk Power Corp.is recognized as be held on May 6,1980 at :he Com-
((Mi 9
one of the nation's major investor-owned utilities. Electncity from our pany's principal office in,jyisB.ise. A formal notice of meeting, proxy state-
- F
#.61j massive system, extending from Lake ment and proxy form will be sent to
E Erie to New England's borders,to holders of common stock in early April.
% Canada and Pennsylvania, serves the Transfer Agents
,. energy needs of 1,348.000 customers. Preferred Stock and Preference Stock:
Our natural gas system serves 416.000 Marine Midland Ba6k-New York custcmers in central, eastem and 2 Broadway New York, N.Y.10004 northem New York, nearly aH within our Common Stock; c'ectric senice area.Two Canadian subsidiaries. St. Lawrence Power Com- Morgan Guaranty Trust Company pany and Canadian Niagara Power of New York Company, Ltd.. provide electric service 30 W. Broadway. New York. N.Y.10015 to parts of southem Ontano. Our cor- Disbursing Agent A new energy decade beckons. pcrate headquarters is 300 Etie Preferred. Preference and Common Prime energy sources-fossil fuels. Boulevard West. Syracuse N.Y.13202. Stocks:
hydroelectric and nuclear--form the Niagara Mohawk Power Corporation long-established power generation mix 300 Erie Boulevard West ELECTRIC SERVICE AREA Niagara Mohawk will continue to deploy Syracuse. N.Y.13202 for the most efficient generation of e!ec-Stock Exchanges tricity. At the same time, our firm com. -
mitment to developing alternate energy ,,,."""", Common and Certain Preferred Series: ,
Listed on New York Stock Exchange i sources-the sun and wind included- '
will prevail as we enter the 1980s. -
Common Stock:
~
~
Also traded on Amsterdam (Nether-
. - . *:" lands). Boston, Cincinnati. Detroit, t'"" # ~M
- v Midwest. Pacific Coast and PBW stock ,
,a.'"'
- a-.'" exchanges.
~~
arw vem sme - i Ticker Symbol: NMK l Form 10-K Report A copy of the Company's Form 10-K report filed annually with the Securities and Exchange Commission is available after March 31,1980 by wiiting the Vice
! GAS SERVICE AREA President and Treasurer at 300 Erie Boulevard West. Syracuse N.Y.13202.
i
_ n. .ne.wan n . co., ,, na 2,., manc.~mn .e r. ,
wee wena ca. nn ee j ,,, %.aeus4 A-- .
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EHUGHTS OF1979 CONTENTS 1979 1978 *. Change 2 President's Letter fotsi operating revenues s1,516,503,000 s1.280.248.000 18 4 Financial Review ncome available for common stockholders s 128,186,000 S 112.502.000 14 7 Nuc! ear Activities . . .
Iamings per common share s2,00 s1.89 6 8 Hydro Progress - - .
Dividends per common share s1,44 5136ya 5 10 Fossil' Fuels
- ommon shares outstanding (arcerage) 63,976,000 59.661.000 7 11 Natural Cas Utility plant ;;ross) s4,218.528,000 $3.905.374.000 8 11 Consumer Programs Cross additions to utility plant s 374,530,000 s 316.280,000 18 13 Research t!cwatt-hour sales to customers 33,315,000,000 32.382.000.000 3 14 Employees. Stockholders Sectric customers at end of year 1,348,000 1.336.000 1 15 Financial Statements Dectne peak load (kilowat:s) 5,641,000 5.485.000 3 27 Statistics Natural gas sales to customers (dekatherms) 96,618,000 98.002.000 (1) 29 Officers, Directors Cas customers at end of year 416,000 413.000 1
%ximum day gas sendout(dekatherms) 750,666 655.4C8 15 l Civ:CENOS PER COMMUN SHARE EARNINGS PER CCMMON SHARE Dostars coaars
_ _ .s .
1979 1.44 1979 2.00 g s
3 1979 1.36V: 1978 1.89 p j 1977 1.31% . 1977 1.74 i*
I
. . - . w -.
1976 1.24 1976 1 61 1 l
1975 1.21 1975 2.03 ;
-~% .J TOTAL OPERATING REVENUES uilhons of codars 6,
{. , ~ i4'. 4
._a.
1979 1.517
. . . g_ . - .y -m ,-a .
1978 1.290 . ., l
.. . TQ.-l ~..'.*jj~ . -
1977 1.229 d
.y. . . - r-utw . , , .
. . _ = ._. _ _3 1976 1,077 ..%.'-
- _, . r.' . . . -'l W- X_, '
~~
1975 972 -
, f yyyy .----._..s ' _T
- 1_4 l
1 t
TO QUR STOCKHOLDERS We achieved a moderate improvement in our earnings in 1979, as they reached 52.00 per common share compared to $1.89 per share in the prior year.
~
A portion of this 6% rise can be attributed to.a $16.2-million annual rate adjustment approved by the N.Y. State Public Service Commission and put into effect during the first quarter. Despite this modest increase, double-digitinflation again continued to overwhelm our strongest cost control efforts and we were compelled to pursue further. rate improvement.
In April 1979, we filed for electric and natural gas rate increases of $ 180.1 million. The Commission's decision was expected as this report neared publication. As in previous years, we shall continue to file for increased rates whenever the need arises-not only to preside you with a fair retum on your investment as a stockholder but to maintain the reliable, efficient energy serices which our consumers expect.
During the year, electric sales increased 2.9% while gas sales dccreased 1.4% due to warmer than normal weather.
Presently, our best forecasts indicate that Niagara Mohawk's annual electric growth rate into the 1990s will be only about half that projected from the early 1970s, before OPEC's oil embargo, inflation and the general economic slowdown which has hurt N.Y. State and our service area. Even with the reduced prospects we must plan and construct new generation and related electric facilities to meet the energy requirements of our consumers, whatever the future may hold.
To that end, Unit No. 6 at our Oswego Steam Station produced its first electricity in 1979. This jointly owned 850,000-kilowatt addition to our diverse generation mix will help lower requirements for purchased power at peak load periods and improve reliability through expansion of our power reserve margin.
We anticipate announcement soon of the final Master Energy Plan for New York State, administered by the State Energy Office.This long-awaitec blueprint will have a significant future bearing on Niagara Mohawk, particularly on scheduling and siting of generation and transmission projects. Its treatment of proposed nuclear-electric units should be especially relevant to us in the years ahead.
Our commitment to nuclear technology is no less firm today than i before events at the Three Mile Island nuclear plant. Three Mile Island has strengthened our dedication and motivation to advance nuclear power) well-established safety and performance record to as close to perfection as humanly possible. Some of these efforts are discussed in detail on page 7.
Total project completion of the jointly owned Nine Mile Point Nuclear Unit No. 2 reached the halfway mark in 1979. However, because of regulatory uncertainties affecting the nuclear industry and possible modifications required in the construction and operation of nuclear plants, <
we are in the process of revising our entire construction schedule for completion of the plant in 1986. This two-year extensiori will accommodate l necessary modifications to the reactor's containment and radiation protection structures. further geological studies and new requirements l expected from the Nuclear Regulatory Commission arising from the Three l 2
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Mile Island incident. As a result, manpower and engineering design work have been temporarily reduced pending resolution of probable modifications. We do not expect any power supply difficulties related tote
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delay, and we will stnve as ever to maintain adequate electric power -
sources for customer needs at all times.
! We were pleased with a decision by the State Board on Electnc
~- Generation Siting and the Environment giving us a go-ahead to build an
[/ ;f % h, 850.000-kilowatt coal-fired unit on Lake Erie, south of Dunkirk.The ruling 1
-., 4Y ._ followed many months of public hearings and exhaustive legal and g environmental proceedings.The Board indicated approval of a second 7
s N proposed unit would be contingent on proof of need, either by Niagara N'
h - .
Mohawk alone or in concert with other utilities. We feel confident that this principal power producer can be constructed and operated without harm
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As the new year began, announcement by the State Board on Electric
.. . s
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Generation Siting disallowing construction of the proposed Sterling Nuclear Station came to us as a severe disappointment. Sterling's design
> was part of the Standardized Nuclear (.! nit Power Plant System Program Jonn G. Haehl,Jr' believe this project, of which Niagara Mohawk owned 22%, would have been totally compatible with the environment. Moreover, it would have provided significant economic benefits for upstate New York consumers besides reducing foreign-cil dependence and helping to assure stable energy supply in the decades ahead. Together with the co-owners, we have filed with the Public Service Commission to recover our investment in the Sterling project.
In a similar vein, references appear throughout this report to other
! difficulties and costly delays stemming from regulatory influences over
! every facet of our business. Of particular note are some of the barriers we must clear to expand our hydroelectric capacity on waterways ir :ur system, discussed on page 8.
Financing during the yearinclude1 the public sale of 3.5 million shares of common stock and issuance of $100 million of 25-year mortgage bonds. Financing requirements for 1980 are expected to exceed
$270 million, including receipts from common stock sales through our Dividend Reinvestment and Stock Purchase Plan and the Employee Savings Fund Ptar. Construction needs and refunding of $80 million of 30-year bonds will make 1980 a heavy financing year.
The proposal of the Town of Massena to acquire by condemnation major parts of our electric distribution system in Massena remains undecided as various courts and the Federal Energy Regulatory Commission consider matters in the case.
i We value the loyalty of our employees and stockholders more than ever as we enter the decade of the Eighties.Your continuing support is l deeply appreciated.
m n 3 -aen ur.
February 1,1980 Presicent and Chef becat,ve CMer j 3 i
FINANCIAL IlEVIEW Niagara Mohawk's camings in 1979 A new electric peak load of (7.0%) gas,all within Federal price were $2.00 per share, up 11C over 1978 5,641,000 kilowatts was recorded on guidelines.
when fewer shares were outstanding. February 14,1979, some 156,000 kw In early Decembar, the Ad,ministrative The following factors, which may not be over the 1978 peak. Law Judge in the case rec.cmmended indicative of future operations or eam- that electric rates be allowed to increase ings. have had a significant effect upon A $46 million increase in natural $91.3 million annually and gas rates be the results of operations during 1978 gas revenues was noted in 1979, allowed to rise $800.000 per year and 1979- compared with a rise of $22 million in supplemented by accounting proce-Total revenues were $ 1.517 billion in 1978.The change resulted primarily dures designed to partiaDy offset the 1979, an increase of $236 million or from price increases authorized by the immediate need fer higher revenues.
18.5% for the year. Operating revenues Federal Energy Regulatory Commis. The interim recommendation was far increased significantly in 1979, primar- sion to Consolidated Gas Supply Corp., short of our request and we took strong ily the result of:(!) recovery ofin- our only supplier of gas, and recovered exception to itin our response to the creased energy and purchased gas from customers through the gas ad- Commission. Because of the nearly costs through the electric and gas ad- justment clause. year-long regulatory proceedings for justment clauses of the Company's Total gas sales for the year fell 1.4% any rate case, any increase, as finally tanffs,(2) base rate incre ses and (3) in 1979, against a climb of 5.0% in determined by the PSC,is not expected increased e!ectric sales. Gas sales de- 1978. Residential customers led the to go into effect until March 1980.
creased due to warmer than normal decline with a decrease of 53% and weather during the last few months of commercial sales decreased IJ%. In 1978, the Company petitioned 1979.The tables on page 5 show while industrial sales increased 9.5%. the Commission for a reopening of an changes in electric and gas revenues The lower gas usage was due to earlier electric rate case on the basis of and sales. warmer than normal weather partially changes in demand for electricity which offset by conversions to gas for heating had caused Niagara Mohawk's forecast The Company's electric revenues because of its price advantage over of sales and revenues for the first rate increased $191 millionin 1979,to other fuel sources. Gas customers year ending June 30,1979 to be over-
$ 1.211 billion, compared with a rise of numbered 416,000 at the end of 1979, stated.The PSC granted the petition
$33 million in 1978. Electric sa'es to up 3,000 over 1978. The average rev- and on March 14,1979 we were al-ultimate consumers in 1979 were up enue per unit of use (dekatherm) for lowed to increase electric rates by $ 163 2.0% over 1978. Residential sales roce residential customers was $3.40,17.6% million yearly.
by 1.7%, while sales to commercial and more than in 1978. ,
industrial customers showed increases in 1979, the cost of fuel for electric '
of 1.8% and 23%, respectively. We filed with the New York State generation went up $69 million and l At year end, our customers num- Public Service Commission (PSC) electricity purchased rose $60 million. 1 bered 1,348.000, some 12.000 more on April 6.1979 for a total $180.1 mil- These added costs were due to higher than in 1978. The average price per lion in electric and natural gas rate in- unit costs of fuel and purchased power kilowatt. hour paid by residential con. creases, based on forecast operations and to necessary reliance on higher-sumers was 433C in 1979, compared for the rate year ending March 31, cost sources of power during the shut-with 3.93c in 1978, a rise of 102%, 1981.The request was for an overall down of Nine Mile Point Nuclear Station ;
while the Consumer Price Index 13.6% revision. including $ 159.7 million for scheduled refueling and mainte- ;
climbed 133%. (15.5%) e!ectric and $20.4 million nance.Through our energy and pur-ELECTRIC SALES GAS SALES AVERAGE COST OF FUEL BUPNED whons of ww.nrs. 7housands of ce=atrerms Oonars !
. N 1979 33.315 19r9 96.618 1979 16.34 39.08
' rih"TiHEEEEEZKg 1975 32.382 - C.) 1978 98.002 1979 12.s8 37.11 4mi 5 .QhL ~~ v. &.. : :
1977 1977 93.370 1977 12.94 34.00 31.367 ? -fz - ~~
- o,....e # - '
1976 31.802 %: 1976 102.918 1976 11.04 32.34 1975 30.319 4 L 1975 92.919 1975 10.70 33.26 l ~ . . . . - -h Barret of oil 70n of Coal r
1
ELECTRIC increase (cecreaseerem oner :er'cc GAS :ncrease icecrease)' cm ener cened in mdl,ct's cf :Colars en Trilsons et Oct!ars 3eveNes 1979 1973 3evenues !979 1973 incrcase in case rates . $ 24.5 314.9 increase in ease rates . s 4.6 s 2.2--
Fuct and purenased power cost Purchased g as cost increases 42.3 '9 T increases 108.8 (2.6) Gas sales . ~( 1.4) 9.9 Sms to ultimate consumera . 20.7 16.7 s45.5 $21.9 Sats to otner electric systems . 23.7 0.8 Miscellaneous operating revenues 13.1 2.8
. *.of totai **'ncrease frem t973 ,
$190.8 332.6 ;as Gas Cena- 1 C: ass cf serv'ce revenues revenues tnerms
- .cf tetai *. .nc. ease ' rem 197s Residential . 57.8 11.3 (5.3) e'ectre E ec nc uc=2c- Commercial 23.3 17.0 (1.3)
C'assetSevee revenues revenues ncurs industrisi . 15.1 42.7 9.5 Assicential 29.5 11.9 1.7 7otal to ultin ste consumers . 96.2 16.7 (1.8)
Commercial 32.5 17.8 1.8 Other gas systems 3.3 46.0 9.2 l Industnal . 25.8 20.9 2.3 Miscellaneous . 0.5 15.3 -
l Municioal service 2.0 10.8 (0.7) 100.0*4 17.5 (1.4)
Total to ultimate consumers . 89.8 16.5 2.0 Other electric systems . 6.9 39.9 13.0 Miscellaneous . 3.3 48.0 - I 100.0*4 18.7 2.9 l
l
- hased gas adjustment clauses, the gas (LNG) supplier, and Sonatrach, above those in 1978. !srgely the result Ngher costs of fuel, purchased power Algeria's national oil and gas company. of work performed at the Company's and purchased gas related to sales to The Natural Gas Policy Act gradually nuc! ear plant during refueling and altimate consumers eventually result in phases out domestic price controls at higherlevels of maintenance required nightr revenues. Such higher costs the wellhead to create incentives for at our steam generating stations and on sssociated with sales to neighboring further exploration and drilling of new our electnc distribution sptem.
ut:lities are recovered immediately in we!!s to improve gas supplies. LNG prices charged to them. forms about 15% of Consolidated's Federal and Canadian income supply, and its higher cost in turn adds taxes (net) rose $1 millionin 1979 Tho cost of gas purchased climbed to the price of gas purchased by Niag- and $2 million in 1978.The 1979in-
$38 million in 1979. compared with a ara Mohawk and scid to customers. crease is the result of an increase in
$ 16 million ncrease in 1978.The in- Increases in other operating ex- deferred federalincome taxes which cresses reflect the effects of the Natural penses of $19 millionin 1979 and $16 was partially offset by a decrease in cur-Ccs Policy Act, enacted by the Con- million in 1978 are largely due to wage rent federalincome tax expense.The gress in 1978, and renegotiation of a increases and a rise in pnces paid for 1978 increase was attnbutable to high-10-year contract between E! paso materials and supplies. Maintenance er taxable camings. (See Note 10 to the Corp.. Consolidated's liquefied natural expenses for 1979 were $19 million Consolidated Financial Statements.)
AVEAAGE GACSS ELECTAIC UTILITY lNCCME iBEFORE ;NTEREST AND INCCME TOTAL TAXES.
PLANT PER ELECTRIC CUSTCMER TAXES) AND INTEREST CHARGES NCLUDING INCOME TAXES OCdart %I1106S Cf scalar $ %IhC6S Cf Ocelars ,
7 E T Cj ;%Kf CQf. gWLah MM DiQ -
'.979 2.!c2 7 1979 110 297 1979 189'afi 19r$ 2.6c8 PJ 1978 101 2s2 1979 173 . - Y
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t977 2.444 hI 197' 34 23s 1977 167.h.h?h
. Y M b&?
1973 x c r A & [h
,.~.. w m q qt 2.253 d 1976 38 207 1976 megyg a 143
'9?5 130'.ygl. d 2.084
- f ,1 1975 91 220 ?97s i mm= nw.w 2
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nd R l Interest caarges income l 1
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Change THE 1979 REVENUE DOLLAR AND WHERE IT WENT Change l Inenousands from in thousands from i of collars 1978 of coliars 1978 l
$534.385 12*. 35c Residential customers E ! : u b.E
% *!If M Wages, salaries, employee ,
J benefits 13c 198.469 12 l 464,312 18 31c Commercial customers Gas purchased .13e 196.711 24 12c 188.758 9
% income and other taxes 923 gM Electricity purchased 11c 159.453 60 359.093 23 24c Industrial customers [: q ;i] Interest and other costs-net 10c 152.769 9
=I ~ ;.R Dividends to stockholders 8e 119.980 9 158.713 37 10c All others M'QiPJ Depreciation 6c 84.212 4 Retained in business 2c 36.050 20 Allowance for funds used during 1979 financing included the public Productivity gains and new effi-construction increased S 13 million in sale of 3.5 million shares of Niagara ciency measures were again noted at 1979 and S 11 million in 1978 due to Mohawk common stock at the approx. Niagua Mohawk dunng the year. Espe-higher amounts of construction work in imate market price of 813% per share, cially significant was the revamping of progress and additionallyin 1979, due 2.3 miHion common shares sold ourInformation Systems Department to higher accrual rates being charged. through our Dividend Reinvestment into the new Management Systems and The increase in other interest of $3 mil- and Stock Purchase Plan and Employ- Services Department. lts expanded ac-Den in 1979 reflects both the need for ee Savings Fund Plan and a total of tivities are expected to yield gross an-greater short-term borrowing to tem- $100 million of 25-year mortgage nualsavings of about$5 million begin-poranly i nance the construction pro- bonds issued through private place- ning in 1986 due to startup of several gram and a drastic rise in it;terest rates ment at the comparatively favorable new computer systems. Project teams during the year. rate of 9.95%. Proceeds from these have been organized to begin work on sales provided construction funds, the first of these, including customer, Preferred and common stock div- In the fourth quarter, interest rates corporate and construction and idends were paid on March 31. June rose sharply to record high tevels for maintenance systems.
- 30. September 30 and December 31. both short and long-term financings. In we presently estimate that 65% of the 1980,we must refund $80 million of The costimpact of regulation upon 1979 common stock dividends is a re- bonds coming due which were issued virtually all aspects of our business, tum of capital and therefore is not taxa- 30 years earlier at interest rates under especially environmental affairs,is ble as dividend income forincome tax 3%. The average interest rate for all debt growing more pronounced everyyear.
purposes.The remaining percentage outstanding at the end of December proceedings, for instance. in the New on common dividends and 100% of was about 7.4%. High priority in rate in- York State " Article VIII" siting law for preferred stock dividends are taxable as crease filings is given to seeking an proposed power generating facilities dividend income. adequate camings level on stockhold- cost the Company $2.7 million in 1979.
The table below shows dividends per ers' investment and improving our cut- Since 1976, when we filed for certifica-share for our common stock and rent bond credit ratings of A and tien for our planned Lake Erie Genera-quoted market prices: A-minus from key rating agencies. tion Station,we have spent over 517.3 million solely for environmental and 1979 $e s afe s e ray To broaden our financing oppor- legal affairs in the case. This includes tunities, we have established Niagara an estimated S2 million just for 1st quarter 3 .36 $15% $13% Mohawk Finance N.V.,in the Nether- analyses of projected effect of the sta-2nd quarter .36 14% 13 lands Antilles. This subsidiary will give tion upon regional grape crops. Reg-3rd quarter .36 14% 12% us access to the Eurodollar market to ulatory requirements, including en-4th quarter
_ 36 . 14 12 obtain capital needed for construction vironmental assessments for our hy-
$1.44 projects. Overseas financing is desir- droelectric expansion program alone, able when the Eurodollar market offers amounted to some $300,000 during 1978 lower interest rates than in the U.S. The the year. All of these costs of doing bus-1st quarter S .33 % $15% $14% Company will still have to obtain Public iness are bome by our customers,a 2nd quarter .33% 15 13 4 Service Commission approval for each 3rd quarter .33% 15% 13% borrowing, as with domestic financing.
4th quarter .36 14% 13 % The PSC autherized formation of the
$1.36% subsidiary in 1979.
6
NUCl. EAR ACTIVITIES The accident at the Three Mile Island have begunjointly by Niagara Mohawk TOTAL GENE AATING COSTS:
FOSSIL FUEL VS NUCLEA A nuclear plant in Pennsylvania in March and other utilities to !eam the feasibility 1979 fostered a number of measures of establishing an insurance pool to _ . - c.n , ,,y,q by Niagara Mohawk and others in the cover costs of replacement powerin - -- !
industry to further safety refinements case of an emergency at a nuclear -
l and promote nationwide public under-power plant.
standing of nuc! ear energy. Nsu w 3.4s3 i
December 1979 marked the tenth - - _ _ .
l Foremost among these was the anniversary of operation forNiag- - .- - - -
creation by the industry of two new ara Mohawk's Nine Mile Point Nuc! ear organizations,theinstitute of Nuclear Station Unit No.1. Recognized Nuciear 2.619 Power Operations to achieve improved throughout the industry for its safety -
operator training and to audit and and fine performance record, the '
evaluate safety programs, and the Nu- 610,000-kilowatt unit has produced j clear Safety Analyses Center to serve as some 32.4 billion kilowatt-hours over inciuo w. nw.ar a.comm. oning costs a c! earing house for Three Mile Island the past decade. Generating the same RfC/,7,,*"gf,57"ij'y I study resu!ts. power from fossil fuels over that period Sased at Electric Power Research would have taken 54 million barrels of insttute headquarters in Palo Alto, oil or 14 million tons of coal.The sta-Califemia, the Center will disseminate tion was cited in 1979 by General Elec- unit's 1,100-ton reactor pressure vessel the results of safety reviews and tric Company for attaining the highest arrived at the plant site following ship-analyses to reactor owners and other combined availability and capacity fac- ment by barge over the Great Lakes groups. In addition, preliminary studies tors of any boiling water reactor in the some 2,000 miles from Memphis. Ten-U.S. in 1978. The unit was available for nessee. In December and again in early
- - ~ - -
service 347 days out of 365 days and 1980 major reductions in work force produced 86% of the powerit would were conducted at the site, not only to Giant 1.100-ton boiling water reactor have generated had it been operating at accommodate winter weather condi-vessel, rnounted on crawlers, inches tions but also to enable completion of full output for the entire 12 months.
With startup now scheduled inlate studies to re-examine the work pro-Po nt N c a nt .2 cc struct n 1986,we are now halfway toward total gram in light of current regulatory un-site on Lake Ontario after 2.000-rnile ,
barge trip up Mississippi River and project completon at our 1.08 million- certainties at both federal and state across Great Lakes. Large building in kilowatt nuclear unit No. 2 at Nine Mile levels. Shares owned in the unit include background at left is our 610,000- Point on Lake Ontario. In late 1979, the Niagara Mohawk 41%, Long Island kilowatt nuclear Unit No.1.
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! HYDRO PROGRESS Despite anotheryear of unanticipated regulatory hurdles in hydroelectne proj-
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ect work, we are moving ahead with an
} extensive expansion program to add
- some 205,000 kilowatts of water-
- _ powered energy to our system.
L -
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' Most of this effort entails devel-l opment of the upper Hudson River j basin (146,000 kilowatts), while the
,, ,, remainderincludes northem and cen-l J i' tral New York waterways.The largest
' ' project consists of a new dam and
! powerhouse to generate 60,000 l \ kilowatts at Hudson Falls, and we plan 1
\ '
to file an application for this develop-
, ment with the Federal Energy Reguia-
'g tory Cornmission in early 1980. Its on-line target date is the mid-1980s.
I
! Because of regulatory delays over l k.v % water quality certification, plans to
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replace the 65-year-old Granby Hydro br-# y' .
Station on the Oswego River were set
. 4 g};; y e, back by at least a year in 1979. The first
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S.,.- % Z projectin our hydro expansion plan,
.<. 7.. Granby will have its 3,000-kilowatt unit
, f ',f,- " '
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replaced with a new 10,000-kilowatt
'h..u w '.- .,4 . h5 View of refueling operation at Nine Mile Point Nuclear Unit No.1 shows spent fuel 4. y[% %. ... ,f. . . ... .4[-[
. m
[$%f
-W rods being removed from uncapped reactor, upper left, for transfer to storage cool. : g? '<qr J '
7- ,A
,y. y%;; Q in service since 1969, unit has been cited for outstanding performance.
3 % p y_
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...' w.1 s Ughting Co.18%, New York State Elec- southem Texas. United States Steel 7. f.QJg";y-Q%>,. . V.ly) ../
t tric & Gas Corp.18%, Rochester Gas Corp. owns the other half and manages M. .
M . g' {,7 l and Electric Corp.14%.and Central Hudson G:.s & Electric Corp. 9%.
operation of the faci 5ty, the largest solu-tion mining developmentin the world.
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7 The N.Y. State Public Service Commis- . ,; ,' -x -,.7g.; 7
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Early in 1980, the New York State Board on Eectric Generation Siting sion has ruled that our e!ectric rates must reflect the cost of NMU uranium gD y.
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and the Environment withdrew its origi- at either p nduction cost or the market .e . , ' . - h~g -
nally issued certificate of environmental compatibility and public need for a 1.15 price, whichever is lower. The Arst full # M.'y O.M7 '%,
year of operation cf the expanded Y.' i - ' DF. 4 4 million-kilowatt nuc! ear unit planned facilities was 1979, with produc ion ex- M ' V jointly at Sterling near Lake Ontario.
We are studying the Board's decision ceeding 900,000 pounds. The P"C rul-ing and the revision cf the startup date $f.ph[j.m " + k '.?D@? a-
, e
..a reviewing our plans before making of Nine Mile Point Nuc! ear Station Unit Q.
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F; ,
aitemate decisions to replace this lost No. 2 resulted in the sale of $36 million - , P z. ~, -
generation. Niagara Mohawk was to re-cerve 22% of the plant's output, with of NMU-produced uranium during 1979. Proceeds from sales at the mine
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Rochester Gas & Electnc, lead utiHty in were applied to cover operating ex- i y '.8 4 the project, receiving 28%. Central Hud- penses and to reduce the investment in J, %, . 5 .f ~r -
son's share was 17% and Orange and NMU.thereby reducing associated 4*# f2d Rockland Utilities. Inc. 33%. financing costs.s To assure future supply of fuel for our -
nuc! ear operations at Nine Mile Point, r N M Uranium,!nc., a Niagara Mehawk v subsidiary, owns half a uranium minein I; 1
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facility. Its rescheduled commercial *G r m7 ~~ ~
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startup is 1983. r*W. ' - -
I Besides hydro areas pinpointed in *I -' '
our expansion program, constantly ris- :* a 4 ing coal, oil and nuc! ear fuel pnces are 9._
"~~
l making previously marginal hydro prospects look more and more ,, . .
- ~
economically feasible. Weighing these factors, we are continually re-examining .-
i nvers and streams in our service terri-tory for future kilowatt potential.
Niagara Mohawk is involved in
- joint, cooperative hydro plans with . '
other parties, pnmanly communities and pnvate firms.In an especially -
l unique arrangement, the Cty of Little -
Falls, Burrows Paper Co. and Niagara _ _. ..
]
3 Monawk completed a hydro feasibility ' es ,
- study in 1979 and are currently evaluat- ,
d*, .
j ing a proposalto build an 8,000 to
,'N 11,000-kilowatt station on the Mohawk . : %*,.[h. g # _
wN'g%
.- ff -
l River. Also,with the State Energy Re-
- 7.*f l ,-~ V --
! search and Development Authority, we ;q are examining a proposal to reactivate a .,
retired hydro project on the Barge ';;
'~ '
i Canalin Western New York. :e Recent experience has shown that, J0
-- 7'".1 not unlike conditions for future fossil "- >
X_.. 's 1
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- Renovation at 70-yearald Ephratah Hydro Station,left, near Gloversville, involves pouring thousands of t>ns of concrete for new dam walls at 5.150-kilowatt plant
, while modern fiberglass piping, above, replaces penstock serving 50-year-old, 4 8.000-kilowatt Moshier Hydro Station east of Watertown. Hydro plants owned and leased by Niagara Mohawk generated some 3.6 billion kilowatt-hours in 1979, saving h.', .
equivalent cr 6.1 million barrels of imported oil.
m
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- .4 fuel generation plans, considerable ELECTRICITY GENERATED AND I delay in scheduling hydro power PURCHASED BY TYPE OF FLEL
,y
.Q-/4 ./ units can anse over a variety of en-C vironmental concems. Historically, j ,.
h', 4-
' f ' *: f;* 'gg M;. . however, Niagara Mohawk has eamed 3
?$4*
- .p j much favorable recognition forits , . . ,
'q \ ~-0,* .. ',1 a j stewardship of many thousands of .. Coas I
- ' 2, 7 - J ,}pB-W /w acres of prime forest!and at hydro in. 2n D " &, ct- . .A".)
stailations. As long ago as the early Nuclear
, -." --gl,[o2 p . - Id -Y v .4 .g 1900s, from reforestation and tree farming on the Black and Salmon Riv-y,no,, ,,,,,,,
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l ,-j.;N #;f s.
1 ers to creation of public campsites and ,
i ?- , / recreation areas at our Raquette and I
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'A $bM # -- I [ t'~ b .h/'
% Sacandaga projects, we have always placed high priority on land and water i - 9 '. {g
/ quality and will continue to do so.s -
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FOSSIL FUELS IN OUR ENERGY MIX
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Unit No. 6 at Oswego Steam Stacon, a
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l l new oil-fired 850.000-blowatt project we began constructing more than a year oefore CPEC's od embargo of
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l 1973. produced its first electncity in g q y ,_ ,
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l December 1979. .; . & A. r - s-' C -* i ~'
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i The unit is the latest addition to p, _ . $p i % -- .- 6 --m- 'r '-m 'd' l our generation mix and its ownership . ;.~JT'f(3 .p, 7- ,7 ":,.g c
%g and output are shared. with Niagara ?' ., ...
~*
t /', i * '
Mohawk holding 646.000 kilowatts " '
- j' 1.
. T #,b9' .
-+- . . ,f ..
(750 and Rochester Gas & EJectnc 1s ,.J Corp. 204 000 ulowatts (240 of net 4
- k 4, y
- %Q
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capability. Ccnstruccon costs. exclud-
.~j*w L - #
e .d ^' ..{ ' ,
l ' 7-t.I 's I. H g.f." g 3 *w 7 l ng inanc:ng costs, amount to only 5300 per 'nstalled kalowatt. substancaily E 1.: y M-Mi 4M L
^
,+1
. 4[.?.V' sgn-iess than for any steam-electac plant .' , ~
.; . . . g planned in New York State over the next
,s .
% . Am -
decade. :t will not only increase our re-serve margin. but also will cut costs dur- * * " - * , -
,4
, ,e f e -
.y y r., N.
_,] .
.wf '-u'~
-g*
ing peak lead penods. compared w1th y w g}' *7 l
more expensive purchased power er gas turbine capacity.
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The year also saw completion of
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rail line facilities to ceiiver cd to a a -
g k"
~
tank farm serving Oswego Steam Sta-tien. A leased system of interconnected
( p. ,
- ,4 .
,1-1
- # l 3' s. u I
tank cars is avadable to haul the fuel to ~' , *G N!
' - t '
- m. .
Oswego. The rad operation, which g .- ., = ,.
, c ~J .
- 9% .: .
~ ., '
began de!ivenes in January 1980. T' .
-1v o -
'. ~ c. -, '" .
.?- . .
cor-'plements te usual barge ship- @ - +
V2 '
'?
' I. Y 'E "Y.- - '-~ " J r '
ments over Lake Ontano, seasonally -
.3 restncted to non-winter months. The j . . ,. " .._ . 1. 1 . '
. 7 f 1 : ,.
l trains are capable of cairying more tan 45.000 barrels per mp and can be un. Niagara Mohawk's steam station is landmark on Oswego skyline as night settles in loaded in ess than six hours. histonc Port City. Two stacks serve six generating units, with recently completed sixth unit boosting output to 2.050.000 kdowatts at power plant now among In January 1980, after three years of N etheast's largest. Oswego River. flowing in foreground to Lake Ontano. is artery of N.Y. State Barge Canal System.
putlic heanngs and review ci hundreds I of ude-ranging endronmental and - - -
ecencmic detads. me State Board en E'ecmc Generaten Sidng approved agreements and necessary envirer - probiems with avadability and desvery and certified me pnmary !ocaton for m antal controis. of fuel and conversions of fuel handling te t 7 millien-tlowatt Lake Ene Dunng te past year, various meas- and boiler ecuipment represent un-Generaung Staten planned in south- ures and studies were uncertaken. all reasonable expenditures.
westem New York. The Board also gave consistent with natonal goals toward ancond: conal approval of the 'irst energy tndepencence. to cut down en in cooperation with federal and 850 OCO- clowatt urut, but stated that cil bumed to generate electne:ty. We state environmental agencies, autneruaton ci de second unit would conunue to emphasae, however, tat we are cononuing to seek correctve depend on proof of need either by fud-scaie conversicn cf our cil fired N- measures at Oswego Steam Stacon to Niagara .Whawk or a group of ualites. bany Steam Staten to ccal could re- reduce stack emission preciems dat l The coai-fired units are targeted for quire an added capitalinvestment rang- have been experienced since its four ccmmerc:al operation in the ! ate 1980s :ng ' rem 550 miilion to S 130 mdlien l enginal coal-fueled units were con- '
and earty 1990s and w,il save the depending ucen poilut on controis re- verted to od in 1972. While hampered ecuivaiert cf more man 11 mdlion car- cuired. presently, our six generatng by de age cf de boilers and be:r basic j rets of .mpcrted od per year. We are units at Oswego are not considered design ! intended for coal), we are proceeding with te plant s design and candidates for conversien. The capital determined to Snd adequate remedies.s 1 formutaung plans for coal suppiy. costs fer environmental contrcis would l transocrtaucn arrangements. :acer be prohibitve. In additon, technical l 10 l l
l
1 l
THE PROMISE OF NATURAL GAS SERVING CONSUMERS i i
Our natural gas business is showing by the Public Service Commission to Through our heavily premeted Home posieve contrast against previous years, modify customer billing methods for Energy Audit Program we are effenng when shortages and an uncertain sup- gas, basing rates on heat content rather direct help to consumers in their effp.rts ,
ply picture curtailed growth and new than volume consumed. The new to reduce beaung and energy ccsts. In- l markets for the fuel. therm billing became necessary as itiated in mid-1978 under the state's in 1979. permits were issued to at- Consolidated Cas started delivering Home Insulation and Energy Act, the tach 10.600 residential 1.000 com- hiagara Mohawk a mixture of domestic service is making marked gains, pro-mercial and 50 industnal customers to and imported natural gas with varying ducing some 22.700 individual home our gas system which promise addi- heat contents. Because the imported energy audits in 1979, compared with conal sales. This growth has entailed gas contains about 10% more heat 860 for 1978.
constructicn of 38 mdes of new mains, energy (Stu) per cubic foot than 6.100 laterals and other gas service dcmestic gas, the billing un:ts are now in this widely recognized program, facilities over tne past year. therms instead of cubic feet.The new specially trained Consumer Reiations method, now employed by many representatives work first-hand with The gradual easing of restrictions utilices, prctects censumers by customers to upgrade efficiency and on gas usage and new sales started in uniformly charging for gas based on cut back on energy usage through any the ! ate 1970s. due primanly to volun- actual heat received. The change does of three types of audits.These range tary conservation by censumers and in- not represcrit a rate increase or affect from our representatives visiting and in-creased delivery from our wholesale our revenues. spectng homes to completion cf ques-supplier. Consolidated Gas Supply tiennaires and do-it-yourself audits by Corp. The improved conditions are ex- Despite price increases which are customers themselves. Also included is pected to encourage ccmmercial and sure to occu r, natural gas is still likely a financing plan with repayment op-industnal expansion and create new to hold economic and environmental tions of up to seven years and liberal jobs in our service area. advantages over home heating oil and credit terms. Consumers are also given During 1979, approval was granted other petroleum-based fuels.m lists of local contractors specializing in energy conservation work. As the 1979 heating season began, the Company Gas crew installs service lateral to new res;dential customer in Schenectady area. In received as many as 200 requests per 1979 more than 2.600 new residential customers were attached to our gas system. day for the audits.
Many were conversions from home heating oil. In related activities. late in 1979 we
- y. .
launched " Low-Cost. No-Cost" home
' . # . %I, , ... . . . . ,
energy savings workshops for censum-
[e l .
, ; .. . 4 \,', ' "p ,'
ers en a tna! basis in various upstate
.A -
A f- cities. Publicized and promoted locally i
7 ..
- .* - '1 + O1 in advance, these sessiens were cen-k ;p '
-/; .e .. k <W$.4 A ,*
'..j;}kW*-'
- e
'NN. ducted by Company specialists who in-struct audiences of homeowners on the gi dits
,f l;...~ t Q, j' '
g-a . .
. '.7, many inexpensive ways, including weatherstripping, caulking and plastic l . y ;. ' -
s ctm w1ndcws, to reduce energy costs.
I %4 1
- 6, in view of its immediate acceptance, we
- f ~
- f . ,, _ .
'l +i
_ {L more than likely will expand the " Low-Cest. No-Cost" cencept and schedule i ' these helpful, informal seminars in
'?.L4
~-
a l' I
- M"' other communities across our system.
. .c
.,6~
L T ,.
'+
gs* - , __ 6 At the same time, we are centinuing meetngs and workshops with industrial
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.t J ~5 J and commercial customers.
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In 1979, an irregular metering unit was organized to detect and prevent t,
~-
i M ' ' t J- ?? 't . . n,
_ y g;( 7~ -.* t , WP( w. meter tampenng and theft cf electne
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3
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- T -i. ..Q and gas service. As energy costs climb.
-N 4 o g , . . ' . - <,,....'.W *
. w '. # Q f -?%. so do incidents involving theit and at-N - .s .-- tempts to by-pass meters. The new unit
.. ;d.g m ,
e * ' T - h ' (. ;:._ [.. . <N7. - 4 g, is responsible for coordinauen of p,f:/ / -, ' '
r' Company-wide computer alert and p % .. #{.=n e*M r .j. ?g.W%' =. . :
+
$yj, .' .' ~~g.1, I y/ .M c,<, meter-sealing efferts, field inspectens.
a manual on irregular metering and
.g V . c. e, . 3 . , ; h'y,.v._:y %g p Y' MA-W i.y N.E
_. v 4f. - .
cash rewards to empicyees repomng
_ _ _ _ _ . _ . . _ . __ _ _ _ , _ . - _ . _ . _ _ _ _ _ _ _ _ _ _ _ , . _ _ _ _ _ _ . . . _ . . _ _ _ . ~ _ , . _ _ _ - _ , , , _ . . _ -
i suspected theft or tampering situations. ._.,,,s Community Relations as a two-way link A!!ied with our Secunty function, E. 1- - - . , 2 . ? .; with govemment officials and opinion investigations by the new unit resulted g. c
.cf 4g
.c.m A.s leaders,our volunteer Spealgrs in 65 arrests for theft of service during e y M .-.
Bureau. Energy Informattor1 Center at the year.
To reinforce service reliability for our i
H. c, wJA- %- NxnJE
?- ~* 9 W d Nine Mile Point and display and educa-tionalservices.In spring 1979 Three consumers, tree-trimrning and clear- 4 .O
- t .E-. d .G J fT Mile Island cast an entire!y new light on ance work on transmission and dis- t our nuclear information capabilities.
( [.- f . i N s * ^ *, . c . % ~j+
. , , . ., . c tnbution lines was stepped up during These were broadenedin response to a the year. The work Is critical not only to "*/ / " Q W*D. . e^ sharp increase in requests for nuclear maintain a high degree of dependabi5ty -
7dy information across our service territory.
h_ pf p but also to hold emergency repair costs g ._ .m .d down when storms and severe winds
.W 4A_
- ., M U > ' . Oa High among several current con-stnke our region. Trees and branches cepts to reduce consumers' failing on wires cause about 90% of the + , 2NM
>' 4 energy costs through a change in rate few powerintemaptions which do oc- f- T . " ' I4 design is a proposal to price electricity cur, arsd line clearance schedules are "
sales according to the time of day it is keyed to special problem areas. [
F g
~
used. " Time-of-day" rate plans have been under review by the public Service Again last year, the Consumer Y Commission, and we are activelyin-Advisory Council on Energy C. , ,
volved in proceedings, including pub 5c Affairs-comprised of 26 citizens rep- % >7 ' .' 5 hearings, to examine these proposals.
resenting a cross-section of consumer s We anticipate the Commission's overall and communityinterests-proved 4 - decision on revised rate structures by uniquely helpfulin engendering two- i early 1980.
way communications with the many 1 As shown by the chart below, Niagara public segments we serve.Following -__ _"
na -
, Mohawk's rates at year-end were below independent studies on nuclear-electnc those of major New York State utilities energy and presentations by prominent Helicopter assists in construction of and compare favorably with the na-spokesmen both pro and con, Council transrnission tower south of Syracuse, tional average.a members, with one dissenter, co- part of new 345,000-volt overhead line authored their own " issues paper" urg- delivering bulk power frorn enlarged ing continued nuclear development. Oswego Steam Station to Central New York region. MONTHLY RESlCENTIAL ELECTRIC The paper drew considerable attention COST FOR 500 KW-HRS.
i and posidve coverage by upstate news --- -
oonars
! media.The Councilis now analyzing --
s "
energy and consumer-related bills life-support equipment. At the same -
i pending before the State Legislature time,we have intensified Company Niagara Mohawk $22.64*
j and w e look forward to its comments. In communications and ties with many - . - - - ,
l addition. members will continue advis- social services agencies and concemed ..
ing the Company to help make us more govemment and community groups. N.Y. State average g37,99 sensitive to changing consumer needs. This work closely parallels the infor- !".U"*?"G7.h;. _
mational objectives of our public Affairs To that end, a host of other new and Corporate Communications De-Nao nai average su and continuing programs and ef- partment. !n recent years, continually ~
forts are under way for our consum- rising energy costs and a multitude of P ers. These recognize today's need for utility and other energy-oriented service at a more individual personal issues-nearly all coupled with our ',"f""
we an.c .". ".cs 12mno level and better assist consumers with complex role as principal electric and ss. eur-amnar semina iansas l ~ ~ ~ " '
l their own special energy problems. Ac- gas supplier-underscore need for tivities include a new senior consumers communications effectiveness. For program, a new extended billing due these reasons, corporate communica-date plan for the retired and disabled. tions assignments and goals were ex-an upgrading of our budget-payment panded in 1979 to generate added pub-plan, a winter referral procedure for lic awareness and understanding of hardship cases, a third-party not2 fica- Niagara Mohawk and the problems we
, tion plan for customers who may need face. While directed pnmarily at print l help, modified disconnection proce- and electronic media through daily dures and maintenance of lists of cus- news coverage and advertising, our in-temers requiring e!ectrically operated formation programs also include 12
{
- SEARCHING FOR OTHER ENERGY SOURCES Prospects of rising costs, scare:ty of meet environmental standards.The the three-year prcject. Put into wide- l l energy fuels and potential enactment of fac:iity, including the demonstration. is spread future use in our system, the ,
stil further environmental directives budgeted at about $55 million and vil equipment would help reduce peak..-
place a new urgency upon research and have many desirable features net pres- loads that power stations must supply, deve!cpment as we enter the 1980s. ent in current SO, " scrubbing" thus lowering fuel and cperating costs technology. Moreover, it is designed to for both the utility and its consumers.
Last year, Niagara Mohawk's R&D receive gases from the combustion of ;
programs encompassed 53 separate high-su! fur Eastem coal. Since this coal We are also making continuing -
projects,inchding both independent is in abundant supply and less expen- strides in other high technology l "in-house" assignments by the Com- sive to bum than low-sulfur Westem energy research and environmentally l pany as well as cooperanve studies with coals, the project effers potential for re- oriented projects recentlyinitiated or l
- other utility and research groups. In duced costs of generation consistent under way for some time.The listin- l 1979 alone. Niagara Mohawk spent with environmental standards. ciudes a 4.800-kilowatt fuel cell proto- ;
- over S 11 million for RSD. This amounts in October, Niagara Monawk and type scheduled for startup in 1981
conversion of coal to clean-liquid or to acout eight deilars for every electne federal and state agenc:es jcintly an-4 customer in our service area, with more nounced an RSD program aimed at re- gasecus fuel; wind and solar energy re-than half spent for further refining elec- ducing home-heatng costs by using search: and varied pcwer transmission, tne generatien technology, commuruty-wide energy resources at distnbution and substation improve-A project attracting worldwide in- Radisson, a new community north cf ments. All focus upon improving effi-terest is a major electnc lead manage- Syracuse. This experiment, under direc- ciency and reducing operatir g costs and ment and energy storage experiment at tion of the State Energy Research and adverse impacts on air, water and land.
the linng quarters for contestants and Develcpment Authority, seeks methods In concert with the state's other officials in the 1980 Winter Olympic to employ the earth's heating and cool- invester-owned utilities, we will continue Games at Lake Placid. With Niagara ing potential to fill basic energy needs. maintaining vigorous R&D efforts. Our Mohawk as originator and manager of Water source heat pumps using indi- mutual goals seek to reduce depen-the project. athletes from nearly 40 na- vidual wells, common wells, or river or dence upe . foreign oil, encourage tions w1!! p!ay an important role in this pond water, will serve to supplement energy conservation and hold energy one-of a-kind study. its objective: to col- customary home heating equipmentin costs down for consumers.m lect information and data on different i types of heat storage devices and to weigh their possible effect en utility Artist's concept of Radisson community-wide research project where several electnc supply systems in the years homes are warmed and cooled by heat pumps using same water from ground ahead. Under joint sponscrship with sources is discussed by Richard C. Clancy, nght. vice president of research and federal and state agencies and pnvate environmental affairs, and Howard Reynolds. disolay specialist. Project also seeks companies, the $2-millien expenment to increase water's heat content by recaptunng community's low-grace heat.
w111 contnue through 1982.The Olym- - - - ..= = cau u yu pic Village structures are currently planned to functon as a Federal minimum secunty insatutien when the Winter Games are ever. t _
fw Heat Energy...
A large-scale research effort re- ,
lated to suifur emissions and holding _
promise of bcth cost and environmen- '
4 tal breakthroughs was initiated jointly by the Empire State E'ectric Energy i e i .
Research Corp., U.S. Environmental 1
Protecten Agency. E:ectnc Power .I Research Insttute. N.Y. State Energy ,
,, i Research and Development Authenty, and RocxweilIntemational. Niagara Mchawk is hest utility and managing m.,s r -
agent. Constructen actvity started last
- fail at our Hunt!ey Steam Statien near .
. Surfalo. In tne planning stage for L
several years, the work consists cf de- ,,,.,,,.
signing, procurement constructicn. -- ; ,,."."":{" l",,,;,,,:O,.""-
,l start-up. tesung and demonstrating the -- ,:l"O" -
re!iability of an experimental prototype to reduce suifur dicxide emissions to 13 l
O OUR PEOPLE At the year end, Niagara Mohawk's work About 210,000 stockholders pres- matter of gifts, invitations and awards force numbered 9.600, about the same ently own common shares of Niagara from vendors and estabiish standards os in 1957, when the Company served Mohawk and 11,000 hold preferred and regarding outside employment, use of 347,000 fewer customers. preference stock. The chart below indi- Company personnel, equiEment and cates many stockholders own fewer facilities. Also presented are standards The total payrollin 1979 was $224 than 100 shares. for employees holding public office, million, of which $163 million was relationships with govemmental authori-charged to operations and the balance See otholeng Total Totalsrees ties, disclosure of proprietary informa-primarily for new construction. These (Sh8/88) Stoc*nocers hero tion and accurate maintenance of figures were $ 197 million and $145 mil- 1 to 99 61,092 2.078.575 Company records. Management and lion for 1978. Overtime costs were $23 100 to 999 141,375 32,343,435 most supervisory employees signed a million in 1979, compared with $ 14 mil- 1,000 or more 7,198 33.530.033 Certificate of Compliance and Disclo-lion in 1978. 209,665 67.952,043 sure after reviewing the Code at meet-A 7.1% wage increase on June 1, ings across the System. The certificates 1979 was part of a two-year contract For the second year, a series of are to be renewed every two years.
with 12 locals in System Council U-11 seminars was held in various com-of theintemationalBrotherhood of munities in our service area to offer our Starting in 1979, Niagara Mohawk Electncal Workers (AFL CO). Approx- stockholders an opportunity for direct, assumed responsibility for the ad-imately 7.500 employees are repre- informal communication with top man- ministration of our constantly growing sented in the contract, which expires agement. The popular sessions, at. Dividend Reinvestment and Stock May 31,1980. tended by more than 600 stockholders Purchase Plan. Preferred and prefer-from au waiks of life,lesve no doubt that ence stockholders became eligible to Employee training continued at in- security hclders have a strong desire for participate and the limit on optional creased levels in all Niagara Mohawk information about the Company. Ques, cash contributions was increased to operations in 1979. Our safety training tionnaires completed by those attend- $5,000 quarterly. Under the Plan, is recognized throughout the utility ng meetings at Dunkirk, Gloversville, purchases of newlyissued stock are industry forits on-going, innovative Hudson, Niagara Fa!!s, Olean and made directly frem the Companywith-approach to day-to-day accident pre- Watertown stressed interest in Niagara out incurring brokerage commissions
- vention. The Training Department has Mohawk's position on national energy or service charges.These purchases l
been formalizing additional new pr* policies, nuc! ear power, altemate are made from the reinvestment of div-grams and instruction methods, m- energy sources, research and environ, idends and optional cash payments l
- cluding customer service te!ephone mental matters and future energy from participants.
- and fossil generation training and a supplies and costs.More of these help- A portion of funds the Company re-system-wide campaign to keep employ- fut stockholder forums are planned for quires for periodic financing is provided l
ees informed on prime points and the 1980s. by the Plan. In 1979,34.000 partici-issues in our re~nt rate application. pants, representing 16% of au common About 6,600 or 76% of au eligibl* Security holders with aninterestin stockholders, invested $14.528.000in l employees subscribe to the Company's New York State investor-owned new common shares. Application Employee Savings Fund Plan, aHocat- utilities have formed an independent, forms and literature describing the Plan l
ing from 2% to 6% of their wages toward non-profit organization, the Association are available by writing:
purchase of common stock or U.S. of Investors in New York Utilities,Inc. NMPC Cividend Reinvestrnent Plan Govemment bonds. The Company (AINYG).The new group's announced P.O. Box 131 matched their contnbutions by 50% for Syracuse. N.Y.13201 a purpose is "to protect the financial in-l a total $3.356.000 in 1979.The Plan tegrity of New Yorkinvestor-owned holds 5.883,000 shares or 9% of the utilities so they can supply the power outstanding common stock.In addi- needs of the State at reasonable cost to tien, employees may make unmatched users and reasonable profit to owners."
contnbutions of up to 4% of their wages. Further information may be obtained by wri:ing AINYU at Old Camby Road.
Verbank N.Y.12585.
The Board of Directors in June ap-proved a revised and more com-prehensive Code of Conduct for Niagara Mohawk employees.The Code underscores our firm commitment to a practical, effective ethics policy and ex-plains guidelines best serving interests of the Company,its employees and consumers.The guidelines cover the 14
REPORT OF MANAGEMENT Tha consolidated financial statements of Niagara Mohawk in accordance with generally accepted audieng standards. As Power Corporation and its subsidiaries were prepared by and a part of their examinadon,they made a study and evaluation are the responsibility of management. Financial information cf the Company's system cf intemal acccunting control..The.
contained e!sewhere in this Annual Repcrt is consistent with purpose cf such study was to estaclish a basis for reinmce that in the financial statements. thereon in determining the nature, timing'and extent of other To meet its responsibilities with respect to financialinfor- auditing procedures that were necessary for expressing an micon, management maintains and enforces a system cf opinion as to whether the financial statements are presented intcmal accounong controls, which is designed to provide fairty. Their examinacon resulted in the expression of their recsonable assurance, on a cost effecdve basis, as to the opinion which follows this report. The independent accoua-integnty, objectivity and reliability of the financial reccrds and tants' examination dces not limit in any way managemc s prctecion of assets. This system includes communication responsibility for the fair presentacon of the financial state-through wntten policies and procedures, an organizational ments and a!! ctner information, whether audited or unau-structure that provides for appropriate division of responsi i- dited. In this Annual Report.
icy snd the training of personnel. This system is also tested by The Audit Committee ci the Scard of Cirectors, censisting a comprenensive intemal audit program. In addition, the of three directon who are not empicyees, meets regularfy Company has a Code of Conduct which requires all with management,intemal auditors and Price Waterhouse &
employees to maintain the highest level of ethical standards Co., to review and discuss internal accounting centrols, audit and requires key management employees to formally affirm examinations and financial reperting matters. Price Water-their compliance with the Code. house & Co. and the Company's intemal auditors have free The financial statements have been examined by Price access to meet indiv: dually with the Audit Committee at any Waterhouse & Co., the Company's independent accountants, time, without management present.
REPORT OFINDEPENDENT ACCOUNTANTS PR!CE WATERHOUSE & CO.
To the Stockhclders and the Board of Directors of Niagara Mohawk Power Corporation In our opinion, the accompanying consolidated balance sheets and the related consclidated statements of income and retained eamings and of enanges in financial pcsitien present fairly the financal position of Niagara Mohawk Power Corperatien and its subsidianes at Cecember 31,1979 and 1978, and Se results cf their operations and the changes in their financal pcsition fer each cf the five years in the period ended December 31.1979. in conformity w,th generally accepted acccunting prine:ples consistently acclied. Our examinations of these statements were made in accordance w,th generally accepted auditing standards and accordingly inc!uded such tests of the acccunting records and such cther audieng procedures as we censidered necessary in the circumstances.
tO b,/14rnut N.
Syracuse, New York January 25,1980 15
CONSOUDATED STATEMENT OF INCOME AND RETAINED EARNINGS NIAGARA MOHAWK POWER CORPCRATICN AND SUBS'OtARIES In thousancs of dollars For the year ended Decemoer 31 1979 1978 1977 1976 ---. 1975 Operating revenues.
Electric , $1,211,068 $1,020,313 $ 987,760 * $ 863,012 $795,917 Gas . 305,435 259,935 238,072 214.218 176,289 1,516,503 1,280.248 1.225,832 1.077,230 972,206 Operating expenses:
Operation:
Fuel for electric generation , 380,101 311,000 311,185 241,040 223.095 Electricity purchased 159,453 99,536 93,019 99,297 86,533 Gas purchased 196,711 158.229 142,071 124,811 94,960 Other operation expenses . 200,917 181.995 166,297 152,759 136,470 Maintenance . 99,857 80,759 84,536 66,171 58.724 Depreciation (Note 2) 84,212 80,S83 77,113 77,629 69,228 Federal and Canadian income taxes (Note 70) . 34,646 31,123 22.124 17,896 14.630 Other taxes 166,666 152.550 148,989 131,817 113.997 1,322,563 1.095,875 1,045.334 911,420 797.637 Operating income . . 193,940 184,373 180,498 165,810 174.569 Other income and deductions:
Allowance for other funds (total funds 1976 and prior) used during construction (Note 7) . 39,063 28,971 21,660 20,711 29.376 income tax refunds (Note 70) - - -
8.986 -
Federalincome tax (Note 10) 13,782 11.690 5,043 718 -
Other items (net) . 524 1,545 (1,398) 533 2.153 53,369 42.206 25.305 30,948 31,529 Income before interest charges . 247,309 226,579 205,803 196,758 206.098 Interest charges:
Interest on long-term debt . 105,399 99.874 91,563 87.270 84,018 Other interest 4,416 1,573 2,892 1,039 7,285 Allowance for borrowed funds used during construction (Note 1) . (18,536) (16.030) (12,484) - -
91,279 85.417 31.971 88,309 91.303 Netincome 156,030 141,162 123.832 108,449 114,795 Dividends on preferred stock 27,844 28.660 25.705 23.546 19,430 Balance available for common stock 128,186 112,502 98,127 84,903 95,365 Dividends on common stock . 92,136 81.261 74,033 65,642 56.590 Retained earnings for the year . 36,050 31,241 24.094 19.261 38,775 Miscellaneous charges (Note 6) . - (1,180) - - -
Retained earnings at beginning of year . 367,895 337,834 313,740 294.479 255.704 Retained earnings at end of year . S 403,945 5 367.895 $ 337.834 S 313,740 $294.479 Average number of shares of common stock outstanding (in thousands) . 63,976 59.661 56,279 52.731 47.089 Per average share of common stock:
Balance available for common stock $ 2.00 $ 1.89 $ 1,74 $ 1.61 3 2,03 Dividends paid S 1,44 $ 1.36W $ 1.31 % $ 1.24 5 1,21
,
- Cencies cec:,,c::on l
l
- 16 l
i t
a CONSOUDATED BALANCE SHEET i N1AGAAA MCHAWK PCWER CCPPORA71CN AND SUBSiCIAAIES in thousancs of ccIlars At Cecember 31, 1979 1978 ,,,
ASSETS ^
Utility plant, at original cost (Note 3 and Page 26) .. . $4,218,528 53,90 5 374 Less accumulated depreciation and amortization (Note 2) . 1.110,563 1.021.417 3,107,965 2,883,957 Other property and Investments . . 16.149 14.535 Current assets:
Cash, including time deposits of $650 and $5,595, respectively . . . 8,527 10,786 Accounts receivable (less allowance for doubtful accounts of $2,400 and $2,000, respectively) . . .
179,490 127,219 Miterials and supplies, at average cost:
Coal and oil for production of electncity 109,278 70,232 l
Other . . 35,E43 29,736 1 Ptspayments 6,709 4.383 339,547 242.356 D:f:rred debits: i Unimortized debt expense . . . 14,124 13,848 )
0;f:rred recoverable energy costs , 44,170 27,966 l Other 6,982 6.450 )
65,276 48,264
$3,528,937 $3.189,112 1
L: ABILITIES C pitalization(Note 6):
Common stockholders' equity: 1 Common stock-51 par value; authorized 85,000,000 shares; issued 67,952,043 shares and 62.180,277 shares, respectively . S 67,952 $ 62,180 Premium on capital stock , 716,383 646,878 Capital stock expense . . .. (10,558) (10,977)
Retained earnings (Page f 6) 403,945 367,895 1 1,177,725 1,065.976 Redeemable preferred stock (Note 7 and Page 27) . 189,650 198,600 Non-redeemable preferred stock (Page 27) . 210,000 210,000 Long-term debt (Page 26) . 1,443,056 1,414.997 Total capitalization 3,020,431 2.889,573 I Currentilabilities:
Short-term debt /Nete 4) . . 82,040 24.000 Long-term debt due within ene year (Page 26) . 88,500 10,450 Sinking fund requirements on redeemable preferred stock (Note 7) 6,950 1,800 l Accounts payable . 118,727 86.854 I Customers' deposits 4,534 4.902 l l
Accrued taxes 25,537 22,184 Accrued interest . .
30,727 28,M5 Accrued vacation pay 14,569 13.228 1 Other 17.315 8,385 l 389,299 200.408 I 0 ferred credits:
Income tax refunds (Note 70) 21,606 21,606 Other 11.933 10,945 33,539 32,551 Accumulated def erred Federalincome taxes (Note 10) . 85,668 56,580 C mmitments and contingencies (Note 72) . - -
53,528,937 53.189.112 i ) CenCtes Je ';C2cn.
l 17 ,
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e e
1 l
CONSOLIDATED STATEMENT OF CHANGES IN FINANCIAL POSITION NIAGARA MCHAWK PCWER CCRPCRA7lCN AND SUBS.CIARIES In it'ousanos cf Codars Fcr tre year enceo Cecomeer 31. 1979 1978 1977 1976 1975 Tctal Financial tesources were provided by: .
Operations: --
Net income , 3156,030 $141,162 5123.832 5108,419 5 114,795 5 644.268 Charges (credits) to income not renuiring (not prnviding) working capital-Depreciation . . 84,212 80.683 77,113 77.629 69.228 388.865 Allowance for funds used dunng ,
construction . (57,599) (45.001) (34,144) (20,711) (29.376) (186.831' Amortization of nuclear fuel . 28,090 27,107 21,458 22.555 11.481 110,691 Provision for deferred Federal income taxes ' net) . 14,566 7.955 13.333 14.628 11.800 62.282 225,299 211.906 201.592 202.550 177.928 1.019,275 Outside financing:
Sale of common stock . . 75,266 70.462 21.522 70,105 72.557 309.912 Sale of preferred steck . -
74.000 -
30.000 70.000 174,000 Sale of mortgage bonds. 118,500 31.500 125,000 -
100.000 375.000 Sale of promissory note (net) . .
2.338 5,671 10.839 18,848 Issua nee oflong-term notes payable . - -
15.000 18.000 -
33.000 increase (decrease)in short term debt 58,040 (15.200) (1.550) (8.114) (117.786) (84.610 251,806 160.762 162,310 115.662 135.610 826.150 Other sources:
Sale of uClity plant (Note 5) . -
34.955 - -
53.366 88,321 Deferred retoverable energy costs . (16,204) (3,015) 4.654 8,785 (591) (6,371 Income tax rvunds . .
1.885 300 (8.686) 1.241 (5.260 Sale of ureiun (Note 3) . . . 35,987 - - - -
35.987 (Increase) decrease in working capital other than short term debt (see Oe/ow) . 33,660 22,006 1,667 30.465 (122,388) (34.590 Miscellaneous (net) . 5,313 (5.049) 52 4.203 7.592 12.111 58,756 50.782 6.673 34.767 (60,780) 90,198 Total resources provided . , $535,861 S423.450 $370.575 5352.979 5 252.758 $1.935.623 Financial resources were used for:
Construction additions . 3347,544 $277,758 $264,913 S195.676 $ 194,155 $1,280.046 Nuclear fuel . . 26,986 38.522 25,018 87,026 11,959 189.511 Allowance for funds used during construction . . (57,599) (45.001) (34.144) (20.711) (29,376) (186.831 Net additions . . . 316,931 271.279 255.787 261.991 176.738 1,282,726 Reduction of long-term debt 90,000 10,450 13.250 - - 113,700 Reduction of preferred stock (Note 6) 8,950 31,800 1,800 1,800 -
44.350 Dividends . 119,980 109.921 99.738 89.188 76.020 494.847 Total resources used . 3535,861 $423.450 $370.575 5a52.979 S 252.758 51.935,623 (Increase) decrease in working capital other than short-term debt:
Cash . S 2,259 $ (4,207) $ 475 S 13,620 $ (3.067) S 9.080 Accounts receivable . (52,271) (5,364) (5.250) (11,041) (16.310) (90.236 Receivable from plant sharing . - - - 12,402 (12,402) -
Income tax refund claims -
8.391 (1.353) (300) 15,639 22,377 Coal and oil for production of electncity . (39,046) 9,710 (13,017) (15,433) (626) (58,412 Other materiais and suoplies . (5,807) (3,369) (1,490) 1,193 1.213 (8.250 Long-term debt due within one year . 78,050 200 10,250 -
(103.867) (15.367 Sinking fund requirements on redeemacie preferred stock 5.150 - - 1,800 -
6.950 Accounts payable 31,873 7,823 1,001 18.982 (855) 58.824 Accrued taxes and interest . 5,475 4.349 9,317 6.205 2,435 27,781 Other (net) . 7,977 4.473 1.734 3.037 (4.548) 12.673 5 33,660 $ 22.006 S 1.667 5 30.465 $(122.388) $ (34.59C l
18 l
NOTES TO CONS 0LlDATED FINANCIAL STATEMENTS NOTE 1. Summuy of Significant Accounting Policies costs were not charged to current coerations and were not The Company is suelect to regulation my the New York recognized in rates charged to customers. There is no assur-State Public Service Commission (PSC) and the Federal ance that the additional revenues provided by the decommts .
Encrgy Regulatory Ccmmissicn (FERC) with respect to its sioning allowance will ultimately aggregate a sufficient rat:s for service and the maintenance of its accounting rec- amount to decommission the plant. The Company believes ords. The Company's accountmg policies confor:b to gener- that decommissioning costs. if higher than currently pro-ally accepted accounting pnnciples, as applied to regulated vided, will ultimately be recovered m the rate process. al-puolic utilities. and are in accordance with the accounting though no such assurance can be given.
requirements and ratemaking practices of the regulatory Amortization of Nuclear Fuel: The ecst of nuclear fuel, plus authorities. (See Note 12). estimated disposal cost. is charged to operating expenses on Utihty Plant: The cost of additions to utility plant and of the basis of the quantity of heat produced for the generatten rcolacements of retirement units of property is capitalized. of electnc energy. These costs are enarged to custcmers Cest includes direct matenal. laccr. overnead and an allow- througn base rates er through tne fuel adjustment clause.
ance for funds used cunng censtruction (AFC). The cost cf Until June 1979. the Company had assumed that spent nu-current repairs and maintenance is charged to expense. clear fuel wouid be disposed of oy reprocessing and that Whtnever utility piant is retired, its onginal cost, together uranium recovered tnreugn sucn reprocessing would have mth tne cost of removal, less salvage. is charged to accumu- value. At tnat time, because of proposed Federal action and lated depreciation. because there is no reprocessing facilit'/ in operation, the Allowance for Funds used Dunng Construction: The Com. Ccmpany abandcned its reprocessing plans in favor of a pany capitalizes AFC in amounts equivalent to the ecst of permanent storage assumption. The Company has con-funds devoted to plant under construction (8% for the pened ctuded that under either its permanent storage assumption or January 1,1975 through June 30,1976. 9% for the period July the reprocessing assumption previously utilized, costs are 1.1976 through December 31, 1978, 9 25% for the pened approximately equal. The Company believes that nuc! ear fuel January 1,1979 through October 31.1979 and 9.6% affective disposal costs, which may be higher than presently esti-mated, will continue to be recovered in tne rate process, al-November 1,1979). As a result of rate proceedings, effective Cicember 1,1976 for its Oswego Steam Station Unit *6 and though no such assurance can be given.
er to 1978. estmated nuclear fuel dsposal ecsts were Nme %Ie Point Nucl ear Station Unit #2 and July 1,1978 for capitalized costs associated witn its investment in N M deducted currently for Federal income tax purposes. Due to Uranium, Inc. (see Note 3), the Company began computing the uncertainties concerning disocsal cost alternatives and AFC at a rate which is reduced to reflect the income tax effect attendant cost estimation entena, beginning in 1978, the of the borrowed funds component of AFC. The net of tax rate Company has assumed that nuclear fuel disposal costs are was 7?. througn December 31, 1978, 7.5 % from January 1, not currently deductible for Federal income tax purposes.
1979 througn Octocer 31,1979 and 7.75% thereafter. Pnor years' tax liabilities were not matenally affected by such Effective January 1,1977, FERC revised its accounting pro- change in assumption. In December 1978, the PSC granted cidures for determming the AFC rate and required segrega- the Cornpany permission to provide deferred taxes on the tion of AFC into its two component parts, borrowed funds accounting-tax timing differences of current and prior pened nuclear fuel disposal costs.
and other funds. The revision had no effect on income in 1977. The Company, since January 1,1977, has reflected the Revenues Revenues are based on cycle billings rendered borrowed funds component in the interest Charges section of to certain customers monthly and others bi-monthly. The the mcome statement. The Company has not reclassified AFC Company does not accrue revenues for energy sold and not into its borrewed and other funds components for pencds billed at the end of any fiscal Oeriod. The Company's tanffs ener to January 1,197T. include electric and gas adjustment clauses under which Ceotecsation and Nuclear Generating Plant Deccmmis- energy and purchased gas costs, respectively, above or sioning Costs: For accountmg purposes, depreciation is below the levels allowed in accreved rate schedules are computed on tne straignt-iine basis using the estimated use- billed or credited to customers. The Company, as authenzed fut lives by classes of cecreciacie preperty. For Feceral in- by the PSC, charges operations for energy and purchased come tax purposes, the Company computes depreciation gas cost increases in the pened of recovery. The PSC nas using acceierated methods and shorter allowable depreci- penodically authonzed the Company to maxe changes in its acle lives. electnc adjustment clause. As a result of such enanges, a As a result of a PSC rate decision, estimated decommis- portion of deferred energy costs would not te recevered sionmg costs (costs to take the plant out of service in the under the normal oceration of the electne adjustment clause.
future) of the Company's Nine Mile Point Nuclear Station Unit However, the Company has been permitted to amortize and 01 began to be recovered n rates and charged to operations cin such portions to customers, through the electric adjust-ment clause, over 36 months from the effective date of each in July 1978 through revised depreciation charges. The change in the annual nuclear plant depreciation rate, from changt 4 CC% to 4 33%, ref!ects an increase in the estimated service Federal Income Taxes: The general policy, in acecreance lifs of the plant from 25 to 30 years and the estactisnment of with PSC recuirements, is to flow througn the tax effect of an allowance for decommissioning costs at tne annual rate of timing differences between book and taxacle income, that is.
1% Cf the plant's Cost. Prior to July 1978. decommissioning to record only inceme taxes currently payable. However, de-19
._ _ - _ _ _ _ _. .m . __ _ __.. . .__ _ _ _ . . ___
, Notes to Consondered Rnancial Statements continued
, ferred taxes are provided on benefits realized from the class pany has previously indicated it would sell a portion of the life system of depreciation permitted under the Revenue Act output to reduce not assets and associated carrying charges.
of 1971 (shorter depreciable lives, repair allowance and cost in connection therewith, during 1979 the Company sold of removal), on energy and purchased gas costs, on nuclear uranium produced by NMU for approximately 536,000,000.
fuel disposal costs and on certain other items, as approved by The Company expects to self additional portI5ds of the NMU the PSC (see Notes 3 and 10). No deferred taxes are provided output in the future. The inves'tment in the subsidiary, which for other depreciation differences (including accelerated includes costs incurred since acquisition and AFC, has been methods of depreciation), except under necessity certificates reduced by the proceeds from the sale of uranium, net of tax.
in prior years, or for other items (such as taxes, a portion of Such investment totaled $72,000.000 and $87,600.000 at De-
- AFC, pensions and certain other employee benefits) which cember 31,1979 and 1978, rer.pectively, and is included in are deducted currently for tax purposes but capitalized for Nuclear Fuel in the consolidated financial statements.
i accounting purposes. On September 8,1978, the PSC issued an ordsr approving Effective January 1,1975, the benefits resulting from an the Company's investment in NMU, its guaranty of the NMU increase in the investment tax credit from 4% to 10% and notes and permitting, with prior approval, such subsequent j from the change in the limitation on the amount of credit advances as may be necessary to finance the uranium proj.
which may be claimed in any year has been deferred. One- ect. Further, of factive July 1,1978, all benefits associated with half of the 4% investment tax credits realized have been allo- NMU accounting-tax timing differences have been deferred.
cated to Other income and Deductions, consistent with PSC The approval was subject to the condition that rates the PSC directives. For the major projects specified in the AFC section will approve in the future will reflect the cost of NMU uranium above, the imputed tax benefit of the borrowed funds com. at the lower of cost or the market price. Subject to PSC ap-ponent of AFC has been credited to Other income and Deduc- proval, the comparison of cost to market will be on an aggre-tions. gate basis over the life of the projen While management
- As directed by the PSC, the Company deferred a portion of believes that such aggregate costs will be less than the the increase in Federal income taxes for the year 1978 as- aggregate market price of the uranium produced over the li's sociated with the tax gain on the sale of a portion of its ird of the project, no such assurance can be given.
terest in the Roseton Steam Station. The PSC authorized the NOTE 4. Short-term Debt and Compensating Balances Company to recover increased taxes through its electric ad-4 justment clause over a one-year period commencing July 1978. tain short-term unsecured loans of up to $250,000,000, in-cluding the issuance of commercial paper equal to the
? Pension Plans: The cost of pension plans is based upon amount of unused bank lines of credit available to the Com-current costs, amortization of unfunded past service benefits pany. At December 31, 1979, the Company had available over penods ranging from 15 to 40 years and amortization $233.500,000 of bank credit arrangements consisting of a over 15 years of unfunded past service benefits arising from $55,000,000 contractual commitment with several banks plan amendments, as determined by consulting actuan.es.
under a Credit Agreement, lines of credit of $103,500,000 and a Bankers Acceptance Facility Agreement of $75,000,0C0. All
, NOTE 2. Depreciation of these arrangements are renewable on an annual basis.The The percentage relationship between the total provision for Credit Agreement and most of the lines of credit require the depreciation and average depreciable property was 2.7% in Company to maintain compensating balances which are av-1979,1978 and 1977 and 2.8% in 1976 and 1975. The Com* eraged over time. Net of " float", approximately $5,300,000 of pany makes depreciation studies on a continuing basis and cash at December 31,1979 represented compensating bal-adjusts the rates of its various classes of depreciaele proper- ances. The Company has elected to pay fees in lieu of main-ty, when cor sidered appropriate, subject to PSC approval. taining compensating balances on its other lines of credit.
Effective December 1,1976, consistent with a PSC rate deci- The Bankers Acceptance Facility Agreement provides for the sion, electric depreciation provisions were modified resultin9 payment of fees only upon the issuance of each acceptance.
in a reduction in depreciation expense of $4,300,000 for the Acceptances are used to finance the fuel oilinventory at one '
year 1977. As a result of the rate decision which became of the Company's generating stations.
Sffective July 1,1978, the electric depreciation provision for On March 6,1979, the Company entered into arrangements 1978 was increased approximately $1,100,000. with Oswego Facilities Trust (OFT) providing for OFT tc finance the acquisition of a fuel oil storage terminal at NOTE 3. N M Uranium. Inc. Oswego, New York and for construction of certain railroac During 1976, through a wholly-owned subsidiary, N M loading and unloading facilities associated with the terminal.
Uranium, Inc. (NMU), the Company purchased a 50 percent OFT has a $25,000,000 Letter of Credit Facility and Revolving undivided interest in uranium deposits and associated min. Credit Agreement which are used to support its commercial ing equipment to be held by a jointly-owned mining venture. paper obligations. The Company is obligated, under a Dis-The venture is basically an operating arrangement whereby tribution Contract with CFT, to make certain payments for its the Company pays its share o' the capital and operating costs use of these facilities and to purchase, or otherwise arrange l and in turn receives its proportionate share of production. for, the distribution of the facilities upon the termination of Although acquisition of this interest was made primarily to the Trust. The Letter of Credit Facility and Revolving Credit provide a more assured future supply of nuclear fuel for the Agreement of CFT require payment of fees which are basec Nine Mile Point Nuclear Station Uruts #1 and e2, the Com- upon the amount of commercial paper outstanding.
20 I 1
i
The following table summarizes additional information 1,600.0C0 shares of $25 par value perferred stock, 8.375%
aopticable to short term deot: senes, and 1,360,000 snares of $25 par value preference in3 rgsanes or ce a s stock, 7.75% series, capital stock expense increased
$200.C00 in 1979 and $600,000 in 1978. _ , .
At cecemcer 3 f; in August 1978, $30.000,000 (300,000.shaiss) of 11.75%
Short term dect: series preferred stoc< was redeemed. In accredance with a Notes payaote , S - $21.000 PSC directive, the $3,500,000 call premium 6n che recomp-Commercial paper 68.040' 3,000 tion was charged to capital stock expense and is being amor-attners Acceptances 14.000 -
tized over the life of the 7.75% preference senes. Expenses of S 82,040 $24.000 issuing the 11.75% preferred series of $1,200,000 were chargM to retaM eanngs.
W:tgnted average interest rate (1) 13.85 %
- 10.59%
$10,744 NOTE 7. Redeemable Preferred Stock ave age out t nd ng . S 35.888*
Drily weignted average Certain of the Company's preferred and preference stock interest rate (1) . 11.40 %* 8.17% series provide for a mandatory sinking fund for the annual Maximum amount outstanding . $102.100* $39.200 redemption, at par, as follows:
t1;Dc:ucing comoensating caiances anc fees- Numcer of 9nc:uces Csaego Faciht:es Trust seares Segening Preferred $100 7.45% Series 18,000 June 30,1977 NOTE 5. Jointly-Owned Generating Facilities 20,000 March 31,1980*
par value 10.60% Series The following table reflects the Company's share of Preferred $25 8.375% Series 100.000 April l,1983 jointly-owned generating facilities at December 31,1979. The ar value 9.75% Series 66.000 October 1,1980 Company is required to provide financing for the units in process of construction and for any additions to the Rosaton Preference $25 units. The Company's share of expenses associated with the par value 7.75% Series 140.000 September 30,1980 Roseton units are included in the appropnate operating ex.
pinses in the consolidated statement of income. These series also have optional sinking funds through which the Company may redeem, at par, a like amount of In tnousancs c/ dollars Constructio.) additional shares (limited to 120,000 shares of the 7.45%
Percentage Utihty Accumulated work in senes and 300.000 shares of the 9.75% senes). The manda-ownersn o orari ceoree:ation crogress tory sinking fund for the 7.75% series increases by 20,000 Roseton Steam Station snares and 80.000 shares beginning September 30,1982 and Units # 1 and 2(a) 30 $101,488 $14,213 $ 2.275 1984, resoectively.
Oswego Steam Station The Company's five year mandatory sinking fund redemp-Unit # 6(b) 76 - -
222.882 tion schedule is as follows:
Nine Mile Point Nuclear Station Unit #2(D)(d) 41 - - 313,304 Par Thousancs e/ collars Seres vah.e 1980 1981 1982 1983 1984 St:rling Nuclear Station /c)(c) 22 - - 18,962 7.45 % $100 51,800 $1,800 $1.800 5 1,800 $ 1,800 10.60*'. $100 2,000 2,000 2,000 2,000 (a) The Cer 'cany sold to Central Hucson Gas arc E ectr c Corecration
- s. of .ts crigirai 40*. owreesnio 'er cock same cf accreximateiy 8 375 % $ 25 - - - 2,500 2,500
$30.400 CC0.n Cecomee' 1979 Cer: tral Nucson s ochgatec frem 9.75 % $ 25 1,650 1.650 1,650 1.650 1.650 tee to tee to acquire acc.t:enal cortrocs of :he Ccmcacy s m- 7.75 % $ 25 3.500 3.500 4.000 4.000 6.000 rg 1975. Te Cemeany scid a 24*. nte est in re cwnersnio :f UN
- E# l***
sci Unit ei arc a 59*. irte<est ,n re ownersnio of Unit #2 for rcom *Smkirg func 'ecuirer'ents 'cr 1980 ave ceen met :y te aavance vaice et accreveate!y $53A00.000 ano. ;n 1979. solc co am ad- ourenase of cre+errec stecn curing 1979 c:tierai crece y asscc:atec mtn rese anits. *or coca value of ac-crexcate y 34 600.0C0. (See Ncte 121 ic) Our'ng 1975 the Ccrncany curenased a 22% eterest in :ne cweer. NOTE 8. Pension Pf ans snic of Acenester 3as & E.ectt:c Cerceration s S:eriing % c:ea' The Company and its subsidiaries have non-contnbutory rat c or an ,nitial investr 'ent of accroximately 34 300 000 (See pension plans covenng substantially all their emoloyees. The total pension cost was $28,900.000 for 1979. $25.700,000 for tc) Eic:uces a- cun:s scent 'cr cuciear fast 1978, $22,500,000 for 1977, $20,800,000 for 1975 and
$18,800.000 for 1975 (of wnich 56.800,000 for 1979.
NOTE 6. Capital Stock $5,800.000 for 1978. 54.700,000 for 1977, 53.900,000 for 1976 in 1978, the authonzed snares of common stock were in- and 53.300,000 for 1975, was included in construction costs).
creased by 20.000,000. Premium on capital stock increased The Company's policy is to fund pension costs accrued.
569.500.000 in 1979 and 535,400,000 in 1978 from the sale of Preliminary studies indicate that the estimated amount of un-5.771.766 and 5.057,638 snares of common stoex, respec- funded vested menefits at Cecember 31,1979 exceeded the tively. As a resuit of t,1e foregoing and the 1978 issuance of not assets Of the plans by approximately $104.000.000.
21
a e
l Notes to COnschdated Rnat'crat Statemenrs continued NOTE 9. Information Regarding the Electric and Gas Businesses The Company is engaged in t*e electric and gas utility poses. Identifiable assets includes net utility plant, materials businessos. Certain information regarding these segments is and supplies and deferred recoverable energy custs. Corpo.
set forth in the following table. General corporate expenses, rate assets consist of other property and investments, cash.
property common to both segments and depreciation of such accounts receivable, income t&x refund claims, prepayments.
common property have been allocated to the segments in unamortized debt expense and other deferred debits.
accordance with practices established for regulatory pur-In thousands of collars i
1979 1978 1977 .1976 1975 ,
Operating revenues: Electric . . 31,211,068 51,020,3!1 $ U7,760 S 863.012 S 795.917 Gas. 305,435 259.935 238.072 214.218 176.285 Total .. $1,518,503 51,280.248 $1.225.832 51.077.230 $ 972.20(
Operating income before taxes: Electnc . $ 200,718 S 188.236 S 176.819 $ 159.425 S 168,46E Gas. 27,868 27.260 25.803 24.291 20,731 Total . S 228.586 $ 215.496 S 202.622 S 183.706 S 189.195 Pretax operating income. including AFC: Electric 3 257,954 3 233,006 S 210,810 $ 180,077 $ 197,78E Gas. 28,231 27.491 25.956 24.340 20.787 Total . . .. . . 286,185 260,497 236,766 204,417 218.57!
Income taxes . . . . .. . .. . 34,646 31.123 22,124 17,896 14,63C Other income and deductions . .. 14,306 13.235 3,645 10,237 2,15:
Interest charges . 109,815 101.447 94.455 88.309 91,30:
Net income . . S 156.030 5 141.162 5 123.832 $ 108.449 5 114.79f Depreciation: Electnc . .. . . . . .. . S 74,957 5 71,750 5 68.400 $ 69.128 3 60,93E Gas . . 9,255 8.933 8.713 8.501 8.29; Total . S 84,212 5 80.683 S 77.113 5 77.629 5 69,22E Construction expenditures (including nuclear fuel):
Electric . . ... .. . . S 351,972 S 301,583 $ 277.828 5 272,422 $ 196,95(
Gas. .. . 22,558 14.697 12.103 10.280 9.15E Total 5 374,530 S 316,280 S 289.931 S 282.702 S 206.11' identifiable assets: Electric . . . . . ... $2,981,005 $2.717.224 52.552.446 52,359.038 $2,174,45; Gas.. .. . . 315.951 294 667 290,876 285.642 285.846 7otal ...... . . . . . 3,296,956 3,011,891 2.843.322 2,644,680 2,460.291 Corporate assets . 231.981 177.221 175.732 171.620 192.327 Total assets . . 33,52J 937 S3.189.112 S3.019.054 S2.816.300 $2.652.62!
NOTE 10. Federal and Canadian income Taxes Current Federal Tax Expense: The current Federal tax ex. In 1978, the Company received a refund of $9.200,000, in.
pense includes credits of $2,600.000 forinvestment tax credit ciuding interest net of tax, resulting from tne settlement of all generated in 1979 and carried back to 1978, audit issues for the year 1969, including the adoption of the Income Tax Refunds: The Company received refunds in " guideline' method of depreciation. The total tax refunds 1974 and 1975 totaling $21.400,000, including interest, as a and interest recorded in Deferred Credits at December 31 result of the retroactive adoption of " guideline" lives in com. 1979 approximated $21,600,000. In the Company's currem putmg tax depreciation for the years 1966 through 1968. In a rate case the PSC is considering the proper accounting anc 1976 Opinion and Order on a Company rate proceeding, the ratemaking treatment of such total amount.
PSC directed that $12,400.000 cf the amounts received for income Tax Assessment: In October 1972. the Compan) the years 1966 through 1968 be treated as a reduction in rate paid a net assessment of $16,800.000 for the years 1957 base. The PSC, however, reserved the right to treat such through 1962 relating to the deductions taken for the loss o amount differently in future rate proceedings contingent on the Company's water rights at Niagara Falls terminated ir the then prevailing circumstances. During 1976, the portion connection with the redevelopment of Niagara power by the of the refunds and interest for the years 1966 through 1968 Power Authority of the State of New York. The Company har previously included in Deferred Credits totaling approxi- instituted suit for recovery of this amount.
mately $9.000.000 (S.17 per snare), that was no longer subject to a future contingency, was credited to Other income and Net Cperating Loss: During 1977,1976 and 1975, the Com Oeductions. pany utilized for Federal income tax purposes $300,000 22
520,100.000 and $22.600,000, respectively, of net operating and becarne availaole for use.The commercialin service date tr.x ICss carryforwards. of the unit is presently estimated to be in the first quarter of 1980. In his Recommended Decision (issued on December 6 1979) in the Company's current rate case, the Administr_atiye Investment Tax Credits: The Company has deferred the net Law Judge recommended that Oswego Unit #6 investment ben: fit of investment tax credits approximating $15,100.000 tax credit not be recognized in 1979 when such credits would (S.24 per share), 56.900,000(5.12 per snare). S6,100.000 (S.11 normally be recognized under the Company's previously ap-p;r share), $4.800,000 (5.09 per share) and $12.500.000 (S.27 proved Federal income tax accounting policies. Instead, such per share) for the years ended Decemoer 31. 1979, 1978. investment tax credit would be recognized coincident with 1977.1976 and 1975, respectively, in accordance with the the plant being reccgnized for ratemaking purposes.
g:niral policy as stated in Note 1. Although the Company opposes the Judge's recommenda-The Company has unused credits at December 31,1979 of tion, the Company has deferred the effect of Oswego Unit #6 approximately $19.900.000 which may be utilized to reduce ir vestment tax credit pending final decision of the PSC, ex-curr:nt tax expense in subsequent years until they exoire in pected in early March 1980 The effect of such deferral on the 1986. 1979 results of operations was to increase tax expense and The oil-fired Oswego Unit *6 attained in-service status for thereby decrease income by $6.500.000 (S.10 per snare). The Fsd:ral income tax purposes in late 1979. As a result, invest- Company is unable to predict the ultimate outcome of this m:nt tax credit in the amount of $14.400.000 was generated matter.
Summary Analysis: 1975 1979 1978 1977 1976 Components of Federal and Canadian income taxes Current tax expense:
Federal . $ 1,618 $ 7,608 5 434 - -
Canadian . . 4,680 3.870 3.314 S 2.550 $ 2.830 '
6,296 11,478 3,748 2,550 2,830 0:ferred Federalincome tax expense 20,348 19.645 18.376 15.346 11.800 income taxes included in operating expenses . . . 34,646 31,123 22.124 17,896 14.630 Diferred Federalincome taxes included in Cther income and Ceductions . . . (13,782) (11.690) (5.043) (718) -
Total $20.864 S19,433 $17.081 $17.178 $14.630 Timing differences resulting in deferred Federalincome taxes (sie Note 1)
D:preciation . . S 8,227 $22.753 $ 7,146 5 6.223 $ 1.313 Cost of removal of property .. . . .. (1,010) 2,310 245 566 (899) investment tax credit . . .. . . . 15.149 6.899 6,077 4.847 12.523 R:coverable energy and purchased gas costs . . .. (239) 7,012 69 3,650 (477)
Necessity certificates . .
(700) (700) (700) (700) (700)
Nuclear fuel disposal cost . . (5,384) (28,411) - - -
Sales and loans of nuclear fuel . . . (5,678) - - - -
Gun on Roseton sale .... . . 3,962 (3.962) - - -
Other . . .. . . . 243 2.054 496 42 40 Deferred Federalincome taxes (net) . .
514,566 S 7.955 513.333 514.629 511.800 Reconciliation between Federal and Canadian income taxes and the
'ax computed at prevailing U S. statutory rate on income before income taxes Computed tax $81,372 $77,086 567,638 560.301 $62.124 Peduction attnbutacle to flow-througn of certain tax adjustments:
Cepreciation . . 13,329 13.931 19,703 19,741 20,123 Allowance for funds used dunng construction 26,496 21.601 16.389 9.942 14,100 Taxes, pensions and employee benefits capitalized for accounting purposes . . , , 10,202 8.537 7.071 5.731 7.920 Real estate taxes on an assessment date basis . 2,178 560 1,042 2.813 3.035 Investment tax credit . . 2.775 10.874 9.500 - -
Income tax refunds .. . . .
619 4.313 -
0;ferred taxes orovided at other than the statutory rate 6,752 1,824 (7,351) , (5,905) 6.083 Other. (1,224) 326 3.584 6.488 (3.767) 60,508 57.553 50.557 43.123 47.494 Feceral and Canadian inccme taxes . $20,864 $19.433 517.081 $17.179 514.630 23
s.
Notes to ConschCated Fnancial Statements cont nued NOTE 11. Supplementary Information to Disclose the Effects of Changing Prices (Unsudited) 2 Continued inflation, resulting in a decline in the purchasing in recognition of the fact that users of financial reports power of the dollar, has become one of our nation's principal need to have an understanding of the effects of Wlation on a concerns. Inflation has an enormous impact on all sectors of business enterprise, the accounting profession's standard the economy, including consumers, wage earners, investors, setting body has issued a statement requiring that inflation government and industry. adjusted data be presented in 1979 annual reports to stock-The consolidated financial statements are based on histor. holders.The following supplementary information is supplied ical events and transactions when the purchasing power of in accordance with the requirements of such statement for the dollar was substantially different than at the present. The the purpose of providing certain information about the ef-eff6 cts of inflation on most utilities. Including Niagara facts of both generalinflation and changes in specific prices.
Mohawk. are most significant in the areas of depreciation and it should be viewed as an estimate of the approximate effect utility plant and amounts owed on borrowed funds, of inflation, rather than as a precise measure.
' Statement ofincome from continuing operations adjusted for changing prices for the year ended December 31,1979 i In it'ousands of dollars Conventional Cor'stant collar Current cost histor' Cal Cost average 1979 couars averace 1979 collars
%erating revenues . . .. . . .. $1.516.503 $1.516.503 51,516.503 Fuel for electric generation . . . .. 380.101 380.101 380.101 Electricity purchased . ... .. .. .. 159.453 159,453 159.453 Gas purchased . .. . .. . 196.711 196.711 196.711 Cepreciation . . . . . . . .. . 84.212 186.432 242.256 Other operating and maintenance expenses . . . 467.440 467.440 467,440 Federal and Canadian income taxes . .. . .. .. .. . 34.646 34.646 34,646 Interest charges . .. . .. .. . . .. . . 91.279 91.279 91.279 Other income and deductions-net . . (53.369) (53.369) (53.369) 1.360.473 1.462.693 1.518.517 income (loss) from continuing operations (excluding reduction to net recoverable cost) ... ... . . . . . . $ 156.030 5 53.810* $ (2.014)
Increase in specific prices (current cost) of utility plant held during year" . S 588.420 Reduction to not recoverable cost . . . ... . . S (308.561) (42.609)
Elfeet of increase in general price level . . . .. . (798.548)
Excess of increase in general price level over increase in specific prices after reduction to net recoverable cost . . . .. .. (252.737)
Gain from decline in purchasing power of not amounts owed . . 227,257 227.257 Net . . . . .. .. . . 5 (81.304) $ (25.480)
- tncludirig tr'e recuchen to net recoverable ecst, the income (toss) from continuing ocerations on a constant coilar basis would have ceen $(254J51
'or 1979 "At Cecemcer 31,1979. current cost of utihty plant. net of accumulated cecrec:aton. was $6.440.205 wnde nistoncal ecst er net cost recoveraca tnrougn cepreciaton was $3.186.2C5.
Constant dollar amounts attempt to adjust for general infla- Utility Construction Costs. However, when an account could tion and represent historical costs stated in terms of dollars not be indexed by Handy-Whitman. other appropriate indices of equal purchasing pcwcr. as measured by the Consumer were used. The current year's provision for depreciation and Pnce index for all Urban Consumers. Current cost amounts amortization on the constant dollar and current cost amounts reflect the changes in specific prices of plant from the date of utility plant was determined by applying the Company's the plant was acquired to the present and differ from con- average annual depreciation rates to the indexed plant stant dollar amounts to the extent that specific prices have amounts.
increased more or less rapidly than pnces in general. Fuel inventories, the cost of fuel used in generation, and The current cost of utility plant net of accumulated depre- electricity and gas purchased have not been restated frcm ciation and amortization. represents the estimated cost of their historical cost in nominal dollars. The recovery of replacing existing plant assets in kind. Since existing utility energy and purchased gas costs are limitad to historical plant is not expected to be replaced precisely in kind due to costs through the operation of the Company's electric and technological changes current cost does not necessarily gas adjustment clauses. For this reason fuel inventories and represent the replacement cost of the Company's utility plant. deferred recoverable energy costs are effectively monetary i The portion of the accumulated amortization relating to dis- assets. As prescribed. income taxes were not adjusted.
posal costs of nuclear fuel was not used in the calculation of The Company is subject to the jurisdiction of regulatory current costs but rather reclassified to a monetary liability. In commissions in the determination of a fair rate of return on 1
most cases, current costs were determined by indexing sur- its investment. Current ratemaking policy provides for the vivmg plant dollars by the Handy-Whitman Index of Public recovery of historical costs. Therefore. the cost of utility 1
24 l
J pitnt, stated in terms of constant dollars or current cest, that offset by the gain from the decline in purchasing power of exc:eds the historical cost of plant is not presently recovera- net amounts owed on borrowed funds. Dunng a period of bio in rates as decreciation. and is reflected as a reduction to inflation, holders of monetary assets suffer a toss of general, net recovera le cost. While the ratemaking process gives no purchasing power while holders of monetary liabilitiejLgx-recognition to the current cost of replacing utility plant. perience a gain. The gain from the decline in purchasing btsco on past practices, the Company believes it will be al- power of net amounts owed is primanly attnbutable to the lowed to earn on the increased cost of its net investment sut;,tantial amount of debt whien hcs been used to finance wnsn replacement of facilities actually occurs. utility plant. Since the depreciation on this plant is limited to To property reflect the economics of rate regulation in the the recovery of histencal costs, the Company does not have St tement of income from Continuing Operations, the reduc. the opportunity to realize a holding gain on debt and is lim-tion of net utility plant to net recoverable cost should be ited to recovery only of the embedded cost of debt capital.
Flvo year comparison of selected supplementary financial data adjusted for effects of changing prices
!n mcusanos ciaverage 1979 :caars Years ercec Cecemce 31. 1973 5373 1977 1976 1975 Cosrating revenues . . , $1,516.503 51,425.046 $1.468,972 $1,374,179 51,311,754 Hl:torical cost information adjusted for generalinflation income (loss) from continuing operations (excluding reduction to net recoverable cost) . . S 53.810 income (toss) per common share (after dividend require-ments on preferred stock and excluding reduction to net recoverable cost) . . S 0.41 Nst assets at year-end at net recoverable cost $1.304.929 Current cost information income (loss) from continuing operations (excluding reduction to net recoverable cost) . S (2,014)
Income (loss) per common share (after dividend require-ments on preferred stock and excluding reduction to net recoverable cost) . $ (0.47)
Excess of increase in general p, rice level over increase in soecific pnces after reduction to net recoverable cost . $ 252,737 Nat assets at year end at net recoverable cost $1,304.929 Gcnerat information Gain from decline in purchasing power of net amounts owed S 227.257 Cash dividends declared per common share S 1.44 3 1.52 S 1.58 S 1.58 $ 1.63 Market price er common share at year-end . S 12.63 S 15.58 S 18.73 $ 18.34 S 17.54 Avsrage consumer pnce index . . 217.5 195.4 181.5 170.5 161.2 NOTE 12. Commitments and Contingencies Construction Program: The Company presently estimates Nuclear Station, wnen reduced for Federal income taxes, an-that the construction program for the years 1980 through proximated $13.000,000. The Company has petitioned the 1982 will require accroximately $744.0C0.000. excluding AFC PSC to seen recovery of these and all subsecuently incurred and certain overheads capitalized. At Cecember 31, 1979. costs associated with cancellation of this project. While man-substantial construction commitments existed, including agement believes such costs will be recovered, no suen as-those for the Company's share of Unit #2 at Nine Mile Point surance can be given.
Nuclear Station and the Sterling Nuclear Station.
Sterling Nuc: ear Station: The Company has been sharing in Nine Mile Point Nuclear Station Unit *2: In January 1980, tha costs of constructing the jointly-owned Sterling Nuclear the Company and the other joint-owners of Nine Mile Point Stition generating facility (see Note 5). On January 23,1980, Nuc! ear Station Unit #2 (see Nete 5) reseneduled the date of the New York State Board en E!ectnc Generation Siting and planned commercial operation from 1984 to 1986. The new tho Environment (Siting Board) voted to vacate the construc- construction schedule was made necessary by a number of tion permit it had issued two years ago, because it could no continuing technical and regulatory uncertainties and a deci-longer find a public need for the proposed plant. Since the sion to feevaluate geologic design enteria. A revised cost Siting Board has withdrawn Certification of the proposed estimate has not yet been precared to reflect the new Ccmple-piint, the crotect will be discontinued. Through Cecember tion date, hCwever, it is reascnacle to expect a significant c
31, 1979. the Company's c:st associated with tne Sterling increase in ecst based on the new construction senedule.
25
~ ,e,, Cmoecategnanc,a, s,a,eme,,s c_e,
SUMMARY
OF UTILITY PLANT l Liti*ation: Several electric customers have brought suit to tacusancs of collars agai,ist the Company and the Power Authonty of the State of *# #
Utility plant *-
New York (PASNY) requesting that certain power purchased from PASNY be allocated exclusively for their benefit and are Electric plant $2,859,533_, [ $2.680,99t I asking monetary damages for the difference between rates Nuclear fuel (Note 3) . .. 206,206 5 215,20' charged by the Company and rates that would otherwise have Gas plant . 367,652 9 350,021 been charged if this power had been furnished to them over Common plant . 63,920 1 59,72r the past six years. In the opinion of management, the ultimate Construction work in progress 721,217 17 599.41:
liability, if any, resulting from this suit will not materially af.
Totat utility plant . 34,218,528 100 $3,905,37 fect the consolidated financial statements of the Company.
FERC Audit: The staff of FERC has conducted a com-pliance audit of the Company covering the years 1973 through 1978. Among other things, a question concerning
- g the base cost of nuclear fuel on which AFC should be applied in trousancs c/ collars was raised. If the associated recommended adjustment is At Cecemcer 31, 1979 1978 sustained by FERC, the resulting reduction in retained earn- First Mertgage Bonds:
ings would approximate S13,000,000 through 1978. The 2%% Series due January 1,1980 , . S 40,000 $ 40,00(
Company believes that the adjustment is not justified and is 2%% Series due October 1,1980 . 40,000 40.00(
contesting it. The recommended adjustment results from the 12.6% Senes due October 1,1981 125,000 125,00(
FERC staff taking exception to regulatory accounting treat- 3%% Series due December 1,1981 15,000 15,00(
ment prescribed by the PSC, the Company's primary rate set. 3%% Series due February 1,1983 25,000 25,00(
ting body. Although FERC has ratemaking junsdic. tion over 3%% Series due October 1,1983 . 40,000 40,00(
only 6% of the Company's electric revenues, representing 3%% Series due August 1,1984 . 25,000 25,00(
sales to other electric systems,it has the power to prescribe 10%% Series due September 1,1985 47,000 47,00(
boons of account on which reports to stockholders are 3%% Series due May 1,1986. 30,000 30,00(
based. Due to the extensive jurisdiction which the PSC has 4%% Series due September 1,1987 50,000 50,00(
over the Company's affairs, it is the opinion of the Company 3h% Serics due June 1,1988 . 50,000 50,00(
that the financial statements based on the requirements of 4%% Series due April 1,1990 50,000 50,00(
the PSC represent the proper presentation of the financial 4%% Series due November 1,1991 40,000 40,00(
position and the results of operations of the Company. 4%% Series due December 1,1994 . 40,000 40.00(
5%% Series due November 1,1996 . 45,000 45,00(
6%% Series due August 1,1997 . 40,000 40,00(
NOTE 13. Quarterly Financial Data (Unaudited) 6%% Senes due August 1,1998. . 60,000 60,00(
Operating revenues, operating income, net income and 9%% Series due December 1,1999 . 75,000 75,00(
earnings per common share by quarters for 1979 and 1978 7%% Series due February 1,2001 65,000 65,00(
are shown in the following table. The Company,in its opinion, 7%% Series due February 1,2002 80,000 80.00(
hat included all adjustments (consisting only of normal re- 7%% Series due August 1,2002 . 80,000 80,00(
c- ing accruals except for giving effect to the deferral of 8%% Series due Decemoer 1,2003 . 80,000 80,00(
Ouego Unit # 6 investment tax credit during the quarter end- 9%% Series due December 1,2003 . 50,000 31,50(
ing December 31,1979-see Note 10) necessary for a fair 9.95% Series due September 1,2004 100,000 -
statement of the results of operations forthe quarters. Due to 10.2% Series due March 1,2005. 44,000 47,00(
the seasonal nature of the utility business, the annual 8.35% Series due August 1,2007 75,000 75,00(
amounts are not generated evenly by quarter during the year. 8%% Series due December 1,2007 . 50,000 50.00(
in :nousancs of cottars Paul Smith's Electric Ught & Power &
Cceratsng Ccerst'ng Net Eamings cer Ra:Iroad Company First Mortgage Bonds:
Cuar ers eaced revenues inceme income ecmmen sture 4%% Series due July 1,1979 . -
45i 5%% Series due May 1,1985. 450 45(
December 31 Promissory Note,8% Series A due 1979 $416.066 $41,570 $28,005 S.31 June 1,2004 46,600 46.60(
1978 $321,788 $33,881 $26,977 S.32 Notes payable:
Septemoer 30 7 4% due in equal installments, 1979 S335,944 $34,764 $25.511 S.29 November 1,1979 and 1980. 6,000 12,00(
1978 $276,442 $37,571 $27,273 S.32 Prime rate plus W% (not to exceed 7%%) due in eoual quarterly instail-1979 $352.107 550,114 $41,878 ents thmgh Apnl1, M80 H,250 13,75 S.56 1978 5309,666 $47,976 S35.527 S.49 - Unamortized oremium 6,256 6.69' al ng n . . 1, 31, 425 M March 31 ss lo@erm deme wWn one war 88,5M M,4 l 1979 S412.386 $67,492 $60.636 S.86 31,443,056 51.414.99-l 1978 5372,352 $64.945 $51,385 S.78 26
a PREFERRED STOCK Cumulative preferred stock. autnonzed 3,400.000 snares. 5100 par value and 9,600.000 snares. 525 par value Cumulative preference stock, authorized 4.000.000 shares. 525 pst value necerction cree ce sea a ---
'n iPousar'Qs of dotsa's (Ge'cre a:Cinq acc muisted 5tvecends) - . .
At Cecerter 31, 1979 1973 December 31,1979 Lentuai Non-redeema ble (optionally rede emable) V'" *"m Preferred $100 par value 3.40*'. Senes: 200.000 shares . . $ 20,000 $ 20.000 $103.50 $103.50 3.60% Series; 350,000 shares . 35,000 35.000 104.85 104.85 3.90% Senes: 240.000 shares . 24,000 24.000 103.00 106.00 4.10% Senes: 210.000 shares . 21,000 21,000 102.00 102.00 4 85% Senes; 250.000 shares . 25,000 25.000 102.00 102.00 5.25% Senes: 200.000 shares . . 20,000 20.000 102.00 102.00 6.10% Senes; 250,000 snares . 25,000 25,000 103.00 101.00 7.72% Series; 400.000 shares . 40,000 40.000 107.37 102.36 5210,000 $210.000 R edeem able (ma ndatorily redeem able-Note 7)
Preferred $100 par value 7.45% Series; 546.000 and 564 000 shares . S 54,600 $ 56.400 106.01 100.00 10.60% Series; 380.000 and 400.000 shares 38,000 40.000 110.60 102.65 Preferred $25 par value 8.375% Series: 1.600.000 shares 40,000 40,000 26.38 25.00 9 75% Senes; 1.200.000 shares 30,000 30.000 27.055 25.00 Preferonce $25 par value 7.75% Senes; 1.360.000 shares 34,000 34.000
- 25.00 196,600 200.400 Less sinking fund requirements .... ... .. .. 6,950 1.800
$189,650 $198.600
- 'ict re:ee'racie ut~rd Cct cer 1.1981 FINANCIAL STATISTICS 1979 1979 Capitalization ratios:
Common stock equity . 39.0% 36.9*b Preferred stock . 13.2 14.1 Long-term deot . 47.8 49.0 Ratio of earnings to fixed charges . 2.61 2.58 Ratio of earnings to fixed charges and preferred stock dividends . 2.03 1.95 Other ratios-% of operating revenues:
Maintenance and depreciation . 12.1 12.6 Taxes. 13.3 14.3 Coerating income 12.3 14.4 Salance availacte for common stock 8.5 8.8 Ratio of depreciation reserve to gross utility plant 26.3% 26.2%
Ratio of mortgage bonds to not utility plant 47.0% 46.7 %
27
a a
ELECTRIC AND GAS STATISTICS Electric capability 1979 1978 Thousancs ctknowa:ts Electric sales (Minoces of kw-trs.)
Thermal At ,lanuary 1 1980 % 1979 Residential 8,269 8.127 Coal /uel Commercial 9,279 - - - 9,117 Hunt.ey, Niagara River 785 11 785 Industrial . 12,474-- 12.187 Dunkirk, Lake Erie . 585 8 585 Municipal service 276 274 Totalcoal fuel 1,370 19 1.370 Other electric systems 3,022 2.675 Residualoil fuel 33,315 32,382 Albany, Hudson River 400 6 400 Oswego, Lake Ontario . 1,200 17 1.190 Eleetdc revenues (Thousancs of cenars)
Roseton, Hudson River . 360 5 360 Residential . .S 357,818 $ 319,667 Commercial 393,173 333,862 Middle distillate oil fuel Industrial . 312,833 258.649 20 Combustion turbine and diesel units . 354 5 354 Municipal service 23,832 21,515 Total oil fuel . 2,314 33 2,304 Other electnc systems 83,188 59.445 Nuclear fuel Miscellaneous 40,224 27,175 Nine Mile Point, Lake Ontario . 610 9 610
$1,211,V., 51,020.313 Purchased-firm contract Power Authority- Electric customers (Average)
FitzPatrick. Lake Ontario . 154 2 176 Residential . 1,296,469 1,197,060 Totalnuclear fuel 764 11 786 Commercial . . . . s30,119 128,481 4,448 4,460 Industrial , 2,906 2,873
. Total thermal sources 63 0ther . 3,189 2.257 Hydro Owned and leased hydro stations (81) 733 10 733 1,342,683 1,330,671 Purchased-firm contracts Residential (Average)
Power Authority-Niagara River 1,122 16 1,122 Annual kw-hr. use per customer 6,854 6,790 Power Authority-St. Lawrence River. 115 2 115 Cost to customer per kw-hr. 4.33C 3.93C Power AuthonW Annual revenue per customer . 3296.58 $267.04 Blenheim-Gilboa Pumped Storage Plant . 550 8 550 Other. 76 1 76 Total hydro scurces 2.596 37 2.596 1979 1978 Total capability * . 7,044 100 7,056 Gas sales (Thcusancs of cenamtms)
Residential . . 51,895 54,793 Commercial . 23,415 23,734 1979 1978 Industrial . .. 17,109 15,630 Electric peak load during year . 5,641 5,485 Other ga:. systems . 4,199 3.845
- Availante cacaciiity can be increased dunng heavy lead penods by purchases N'D
- from neigncenng interconnected systems. Hycro station capability is based on average Cecerneer stream-ftow conditions. Gas revenues (Thousanos of cottars)
Residential . 3176,567 $158,599 Commercial 71,139 60.794 Industrial . 46,260 32,422 Other gas systems . 10,014 6,858 Electricity generated and purchascd (Minions of tw-hrs.)
Miscellar,eous 1,455 1,262 1979 % 1978 %
$305,435 $259,935 Thermal Generated Gas customers (Average)
Coal 7,275 20 7,016 20 Residential 383,617 382.691 Oil . 8,534 24 8,691 25 Commercial 29,009 28,451 Nuclear 3,005 3 4,467 13 Industnal , . 525 522 Purenased-Nuclear from Other. 2 2 Power Authonty 722 2 886 2 413,153 411,666 Tota / thermal 19,536 54 21.060 60 Residential (Average)
Hydro Annual use per customer Generated . 3,641 10 3,472 10 (ce,rarnerms) 135.3 143.2 Purchased from Power Authority . 8,263 23 8.563 24 Cost to customer (per ro talhydro 11,904 33 12.035 34 erarnerm) . 33.40 $2.89 Other purchased power- Annual revenue per customer . 5460.27 $414.43 various sources , 4,621 13 2.118 6 Maximum day gas sendout Total generated and purchased 36,061 100 35.213 100 (cewat*erms) . 750,666 655,408 i 29 i
l
6 e
)FFICERS DIRECTORS loh3 G. Haeht. Jr. James Bartlett BOARD CCMMITTEES
'resicent and Chief Executive Cfficer Executive Vice President. Syracuse
'.cmes Banf ett Th omas J. Bro anan Executive Committee --
- mecutive Vice President Consultant t formerty Vice President Pesearch and John G. Haehl, Jr., Chairman --
Ylillam J. Donlon Devotopment. Environmental Matters) Syracuse Ecmund M. Davis ionsor Vice Pre icent Ecwin F. Jaeckle Icmes J. Miller Edmund M. Davie Frank P. Piskor icnior Vice presiden,-
Partner.Hiscock Lee. Rogers. Henley & Barclay. Baldwin Maull attomeys-at-law. Syracuse John H. Terry, Secretary kneer Vice resident. General Edward W. Duffy
- ounsel and Secretary Chairman of the Board and Chief Executive Officer, Compensation Committee lich rd F.Torrey Manne Midland Banks. Inc., a bank hoicing company, Baldwin Maull. Chairman icneor Vice President BuMato pwin E Jaeckle comund M. Cavis tich rd C.Clancy John G. Ha ehl, Jr.
/ica President-Pesearch and Presicent and Chief Executive Officer, Syracuse sviroernental Affairs Audit Committee Edwin F.Jaeckle Edward W. Duffy. Chairman
)- ed P O *
/ c Pres $c -Engineenng S ' eischmann & Wgel, f,{0r '
,hn an".'aBu
,at , ,n ohn J. Ehlinger
/ica Presice't-Emcloyee Relations Lauman Martin Committee on Corporate Public Policy r
ohn M. Endries Consultant (formerly Senior Vice Presicent and General Frank P. Piskor. Chairman
/ica President and Controller Counsel), Syracuse Martha H. Northrup Villirm C. Franklin *'8 Baldwin Mault Aca President-Purchasing Director of vanous corporations, New York Finance Committee
'ohn M.Haynes lica President and Treasurer Martha Hancock Northrup Conald B. Rieffer. Chairman Housewife, former President, Crouse-irving Memonal John G. Wick ohn P. Hennessey Hospital Boanj. Syracuse Edmund M. Cavis Ac3 President-Management syst;ms and Services Frank P. Piskor Eugone J. Morel President. St. Lawrence University, Canton 6c3 Pros: cent-Employee Services ind ksK Management Donald B. Riefter cmes F. Morrell C%mm he w Ws W Fue Qum Morgan Guaranty Trust Company of New York.
6co President-Corporate Pfanning commercial bank. New York 1:r:Id K. Rhode e e ent-System project Lewis A. Swyer President. L. A. Swyer Company, Inc., builders and construction managers. Albany tudolph R. Schneider*
6co President-E'ectric Production John G. Wick
- 3ntth A.Tramutola President and Chief Executive Officer. Merchants tic 3 President-Aates surance Goup. SuMalo lobert M. Cleary, Jr.
'ico President and General Aanager-Western Division trymond Kolarz ico President and General
'.Iantger-Central Division lich;rd H. Kukuk Oco Presicent and General Ainager-Eastern Civision
- dward P. Gueth, Jr.
sssistant Ger'eral Counsel Icfm:n 8. Noll sssistant General Counsel
.nthony J. Baratta, Jr.
.ssast+ nt Controper idam F. Shaffer sssist:nt Controder tenry S.Wightman,Jr.
sssistInt Controiler ohn C. Powers
.ss.st:nt Treasurer
'crold J. Sogan sssistInt Secretary oseoh F. Cleary ssistant Secretary-Eastern Civision rederick C. McCall 34tt'nt Secretary-Westem Civision kr:rsc as cf Cec 3f. !979 29
4 300 ERIE SCULEVA AC AEST Sv AACUSE. NEW YC Ak 13202 l
l l
l Whiteface Mountain and other rugged .AdirondacK Oeaks nse in distance as Niagara Vohawk tine mechanic works on new 115.000-voit hne oudt to meet energy demands of 1980 Olymcic Winter Games at Laxe P!ac:d. Construction of 10-mile circuit.
achieved in only a 'ew months time, was termed 'scectacular accomphshment ' in l report by N.Y. State Puche Service Commission.
t
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