ML20155E981

1985 Omaha Public Power District Annual Rept

ML20155E981
Person / Time
Site:	Fort Calhoun
Issue date:	12/31/1985
From:	Andrews R, Mark Miller, Reznicek B OMAHA PUBLIC POWER DISTRICT
To:	Harold Denton Office of Nuclear Reactor Regulation
References
LIC-86-158, NUDOCS 8604210071
Download: ML20155E981 (24)

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! OPPD ANNEAL m L)

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2 OMAHA PUBLIC POWER DISTRICT OPPD SERVICE AREA:

5,000 SQUARE MILES EXECUTIVE OFFICES Electric Building OPPD serves 560,000 people in all or part of 1623 Harney Street 13 counties in eastern Nebraska. Electric service Omaha, Nebraska 68102-2247 - is provided to the following 49 incorporated icornmunities at retail:

TRUSTEEi . Alvo Ceresco .Leshara

. Rogers 1 Morgan Guaranty Trust ny of New York, Arhnipon: Colon  : LouisviNe ! . Rulo '

New York, New York (1 ,1958;1961.. . Ashland . ~ Coat Marder seiem -

1966,1968,' and 1969 Bonds) Avoca Eag@ . Mead -  :.soum send, The First National Bank of Chicago, Cheogo,:- -

essevue . Elkho n : . Memphis SpnngneM lilinois (1972,1973,1975 Senos B,1976~ sonnwgon .Ebnwood . . Morse aluN Vasey , ,

Series A and B,-1977 Senes A, B,and C,7 ' eseir:: . Fort Cahan: thndock WaeNngeon and 1985 Senes A Bonds)  : eays Town' Game R ' Michereon Weseries ourri Herman ' Norm Bondi Weeping

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=C"tr Lakei .Hoga V Onehe N Wns PAYINGAGENTii'- .. - .

=(some) m Vanson: / Papunen venssow -

Morgan Guaranty Trust of NewYork...- cedereiues mennen ~ ~cpens < z.vulen1 -

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New. York, New York 1981,--  : icedriDeaki Lewisse .nelman >

1966, 1968, 1989,' c 1973,11976-Series 8,' . . 46F . ' . : ... c ....* ~ w s 1976 Senes A and B,1977 Series Ai B,( w  ? OPPO'aiss'eorges GIk Creeldesensued, Spiegati, ands D

and C, and 1906 Series A Sonds)' V 14ehatshelesale. _d Q^14

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Continental lilinois Nellonel Senk end hust - .. .

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Company of Chicago, Mnois.(1908;s + t e xg:AAaQt.

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The First Nelional Bank of Chicago, T i 4 _

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lllinois (1972,r1973,1975 1375.r' wr- J M T E 4 c is M Senos A and B,;1977 Series A, and 1985 Senes A Bonds)': * ' 'lend C,s -

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Norwest Bank Netwaaka; N.A., Omaha, Netwasks . '. & C  :

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. .Olson, Fraser, Stryker, Voech,iVaughn, ,

$a )au 6'k - s w t Boyer & Bloch, P.C., Omaha, ,

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l CONTENTS 1985 HIGHLIGHTS 31 1

OPPD Service Area Map . . . 2 Operating Revenues 1985 Highlights .. . . 3 Operating revenues for 1985 were l Chairman's Report . 4-5 S303,036,000, a decrease of $2,963,000, or  !

Board of Directors . . . .5 1.0%, under 1984 operating revenues of President's Report . 6-7 S305,999,000.

Vice Presidents . 7 1985 Operations Review . . 8-10 Operation and Maintenance Expenses Financing . 11 Operation and maintenance expenses for 1985 l Auditors' Opinion 11 were $172,438,000, a decrease of S4,563,000, Balance Sheets 12-13 or 2 6%, under 1984 operation and mainte- 1 nan e expenses of $177,001,000.

Statements of Net Earnings and Accumulated Earnings Reinvested in the Business 14 Net Operatina Revenues Statements of Sources of Funds for Construction 15 Net operating revenues, before depreciation ,

Notes to Financial Statements . . 16-17 and decommissioning, were $120,491,000, an j fo ont n in pe atio s t o e a ng [e u s' o 6, O S ple nta F ve- ear C arnings ReinvesM in me Business parison of elected Financial Data Adjusted for Net earnings reinvested in the business totaled the Effects of Changing Price.; 18 $40,256,000, an increase of $249,000, or I Notes to Supplementary Financial Data 0.6%, over 1984 net earnings reinvested in Adjusted for the Effects of Changing the business of $40,007,000.

Prices . 19 Net Receipts and Debt Service Coverage 19 General Business Sales Electric System Hevenue Bonds General business sales to District customers l Outstanding 20 were 5,465,386,000 kilowatt-hours in 1985, a 1985-1984 Comparisons 21 decrease of 62,844,000, or 1.1%, under 1984 Electric Statistics . 22 sales o' 5,528,230,000 kilowatt-hours. I OPPD Corporate Officers . 23 Average Number of Customers The District served an average total of 229,100 customers in 1985, an increase of 4,599, or 2.0%, over the 1984 average total of 224,501 customers.

Average Residential Use Average annual use per residential customer in 1985 was 9,750 kilowatt-hours, a decrease of 573, or 5.6%, under the 1984 average of 10,323 kilowatt-hours.

Average Residential Cost The District's residential customers paid an average of 5.70c per kilowatt-hour during 1985 compared to 3.39c per kilowatt-hour in 1946, OPPD's initial year of operation.

1985 Construction Expenditurcs Expansion and improvement of system facilities during 1985 required construction expenditures of $71,612.200.

s 4 > CHAIRMAN'S REPORT r '-~~~ -

Coming off a decade or more bonds. With the proceeds, we --

gf of either slow or no economic reduced the outstanding debt growth, many utilities through- under our Tax Exempt Com-M out the nation are now working mercial Paper (TECP) program N

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to restore financial stability. I am especially pleased, there-by 550 million. The remaining

$10 million was used for the, fore, to report that Omaha utility's general construction j!

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Public Power District has fund, for the reserve fund

/ .J d achieved, and is sustaining, its required by the bond indenture,

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j financial recovery and enters the latter half of the eighties and for paying costs of the bond issue. In a related action, well prepared to cope with the we reduced the authorized dynamics of the electric utility level of the TECP program industry. from $105 million to $75 I In 1985, OPPD's net earnings

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h reached a new high of $40.3 million compared to $40.0 In another important develop-ment, we are moving forward I million in 1984. The 1985 per- with a formal review of OPPD's formance is strong evidence rate-making philosophies and r that OPPD's financial recovery rate structures. This review will program, initiated in 1982, is address underlying cost providing this utility with a solid changes that may have foundation for continued suc-cess. This is further evidenced occurred for OPPD and help us maintain a competitive r

by the fact that, for the sec-(

position in the energy market.

. g' ond straight year, the average cost per kilowatt-hour for our This review has been sup-residential customers remained ported by a special Citizens at 5.7 cents, more than 20 Advisory Committee which was s percent lower than the national created by OPPD and completed Morris F. Milleri ' a lengthy study in May 1985.

average. Commercial and Chaman of me Sonat = industrial customers also We are grateful to this citizens Omaha Pubalc Ptmer\ %y?

3 if 1 fared well. group for the many months of Retwed Charman, N Omaha Nabonel Bank, Onds E

-b It.s worth noting that the out-study devoted to the three lra subjects assigned - electric

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a+ [1M.s  ! $14f.inancial performance standing in 1985 was accomplished rates, management compensa-tion, and corporate communi-

- 1 even though total energy sales cations. Committee viewpoints decreased by 3.6 percent. have been, and continue to be, The lower energy sales, which 1 helpful in shaping the direction

.: were largely due to cooler of this utility.

summer weather, resulted in a 1.0 percent decrease'in oper- Also in 1985, OPPD initiated a

3 ating revenues. This was more plan to redistrict the utility's than offset, however, by a 2.6 eastern Nebraska service area

, ]3 percent decline in operation and ensure equitable represen-1 and maintenance expenses. tation for all customer-owners.

j The plan, which created a y Total operating revenues in fourth subdivision and added 1985 were $303 million, com-an eighth member to the Board 3] pared to $306 million in 1984.

Operation and maintenance of Directors, was approved by 4

expenses, meanwhile, were the Ncbraska Power Review wi Board in January of 1986.

$172.4 million, compared to Fred J. Ulrich, a Louisville,

$177 million in the previous Nebraska, farmer and cattle- - -

year.

man, was appointed to the

. Early in 1985, OPPD took OPPD Board in early 1986 by advar,tage of a favorable bond Nebraska Governor Robert market to issue and sell $60 Kerrey. We are pleased to million in long-term revenue have Mr. Ulrich with us.

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c At this point. I want to recog- "n, -

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nize the tremendous contnbu- , Donene D?J6ay.c.. (L)7.

tions to this utlhty made by

'@ .Vice Chapman " i Richard P Jeffnes, who pre- 3 f Senior V%e PregWent, .

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,g c ceded me as Chairman of the i d b%gh , e N 3, Board Mr. Jeffnes articulate s leadership the past two years is fully reflected in the success ' e E' W NMN 9 2-d of this utility dunng that penod Nj hl

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and I shall count on his assis-tance in 1986 Other directors.

Keith B. Edquist. Dennis D Jorgensen. Gene P. Spence.

Warren R. Swigart. and Frank ,, C . ,

J Wear. also served the utility

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_ ' , e. g well and are commended for '

that service 'g$f a"

I also commend OPPD man- 1 l g

agement for the financial plan-l L

ning which has returned net earnings and retum on equity to acceptable levels and for W

developing programs which 4

enhance our wrvice to cus- Y

~/ m temers All OPPD employees have contnbuted to the success-ful implementation of these olans and programs, and we are grateful for their Contnbutions A year ago. as we entered 1985. we were committed to maintaining the financial integ-nty of this utility to operating it in a professional and busi-nesslike manner. to rema:ning 3 .

attentive to the interests of our -

customer-owners. and to '

ensunng them a reliable and

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p!entiful supply of electncity at Y '

an affordable cost. We are .

.,JL meeting those commitments A c6 today and stnving to enhance e

N-our performance further in .. d- 3- - g i - $" [ V ; '"r3%

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Morris F. Miller Chairman of the Board sh  ;

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PRESIDENT'S REPORT i _

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In sustaining the operational Station to North Omaha _

and financial excellence of the Station.

corporation in 1985, OPPD moved aggressively ,n i several Also in 1985, we continued to study ways to meet future d

areas. We cut costs, improved productivity, upgraded our energy needs of our custcmer- -

general plant facilities, and owrfbrs in the most economical -

manner possible. Our most 5 initiated programs ,to improve major efforts concentrated in the quality of service to our customers and the quality two areas - lifetime extens on -

d of worklife for our employees. studies of the five generating -

units at North Omaha Station -

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a Our three major generating facilities, the Nebraska City, North Omaha, and Fort Cal-and development of a pilot program of residential peak g

p~ A load management.

j houn Stations, all performed k - 4 extremely well in 1985, con. Our engineering studies deter-c1 -

tributing greatly to an overall mined that it is technically 3

' # feasible to extend the lifet.imes reduction in fuel and production  ;

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costs. Before going off line in of the units at North Omaha _

late September for scheduled by as much as 20 years. -

refueling, modification, and Economic studies now pro- -

ceeding to dete,rm,are,f it would maintenance, Fort Calhoun Station set a plant production ine i be less expensive to extend the lives of these units or -

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record. The nuclear unit gener-i ated nearly 22 percent more to replace them.

electricity than during any The pilot peak load manage-previous fuel cycle, producing ment program will involve at 93.5 percent of its design control of 200 residential cen- 5

. g  ; capacity over the 14-month tral air conditioners. It's the

. f .,. operating period. For 1985, the final step in preparation for an .

g Fort Calhoun unit accounted expanded peak load control -

for 45 percent of OPPD's total program for future implementa- 5

. CNei generation. Nebraska City tion to defer construction of +

Omahe Station produced 34 percent costly new power supply _!

i and North Omaha Station, facilities. -

l 21 percent. .

Peak load management is an Prudent management of M. "( important part of OPPD's long- -

!?y resources and attention to term Energy Management y market conditions resuted in Program, which also provides 7 y significant cost savings in for off-peak load building

,. 1985. In the fuels area, for through promotion of the elec- "

_ ' w g., ei example, we took advantage tric heat pump for space con-y , - t of a highly favorable spot coal ditioning. There were more -

.Al r y yn market and a competitive rail than 1,300 verified heat pump 4

situation to acquire 600,000 installations on OPPD's system 4

tons of coal for the North in 1985, the most since the Omaha Station last May. Energy Management Program .

In so doing, we achieved began in 1982.

a dc!;vered cost savings of ",

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. approximately $4.5 million over Work also accelerated in 1985 j comparable long-term coal on our program to update -

supply and transportation con- OPPD's general plant. A new a

, tracts. Also in 1985, we expe- $3 million service center was --

8 j rienced a cash flow savings of completed in Omaha. Con- ,

1 approximately S8.8 million by struction of the Elkhorn Center,  ;

i diverting 356,700 tons of a $21 million service facility _;

coal from our Nebraska City on the western edge of an  ;

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[.M PRWDENTS 17-

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expanding metro area, is well -

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underway. A new $6.6 million

a Energy Control Center is also 8 under construction, and Energy Plaza, the expansion of our corporate headquarters, is in the final design stage, with groundbreaking expected in

the fall of 1986.

We welcomed two new mem- '

bers to our senior management team during the year. In August, William D. Dermyer and Dr. Dayton D. Wittke were appointed vice presidents, replacing Gerhardt P. Bahle and Lloyd C. Shalla, both of whom retired after more than 36 years of service. ,

Mr. Dermyer now oversees the Electric Operations and Mate-rial Management Divisions. .M D Dr. Wittke is responsible for

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the Engineering and General -

Services Divisions.

• Finally, special recognition must go to the many OPPD employees who were both aggressive and innovative in developing programs to control costs, increase productivity, and enhance service excel-lence for our customers. These , , . <

employees deserve a great ,

p deal of credit for the successes f of this utility during 1985. (;

They exhibited a high level of competency and professional-  ;

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ism which will benefit OPPD 4. . .-

and its customers for many '

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Barnard W. Reznicek '

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President -

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1985 OPERATIONS REVIEW

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OPPD's long record of success Electric Operations Division,

.. in producing and delivering a was to create an environment safe and reliable product at where employees are encour-a reasonable cost continued aged to develop and implement s undiminished in 1985. Con- their own ideas. Those ideas t

sumers today, however, are are varied in their direction, e expecting and demanding new from operational improvements levels of service beyond to increase productivity or 3

X receipt of a quality product. save money, to those that are 2 e customer service oriented.

To maintain and build its share k

[: of the energy marketplace, During the three-month trial

'  ;. m. OPPD must launch new initia. run, the first group of 17 par-9 i ;3 p ..'3i tives to compete even more ticipants each had an idea 7

2 effectively for the energy dollar. go full cycle, clear through to 3' The thrust of these initiatives implementation. Those 17

' ideas alone are estimated to must be to make OPPD even W '

more responsive to the individ. save the company in excess of ual service needs of customer. $400,000 annually in the years owners. ahead.

~b- To meet this challenge, OPPD New facility construction also began to develop a network played an exciting role in l of programs in 1985 designed Electric Operations activities

\ to enhance service to cus- during 1985. The Omaha Ser-I tomers on a number of fronts - vice Center officially opened over the counter, on the for business in April 1985.

IS'k phone, through the mail, and in Located about two blocks the field. This network of pro, northwest of Electric Opera-grams, which has come to tions Headquarters in central Omaha, the new center allows ee[O)-

be known as " Performance u.mm_ -as s -1 . 100%," has two primary goals - OPPD to consolidate person-e to make it easy and pleasant nel from a number of areas -

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to do business with OPPD and to improve employees' quality overhead line, underground construction, cable splicing, gg of worklife. and Customer Services Opera-tions - in an attra;tive, func-7 g H The key to providing customers tional, and energy efficient

+1 with the best possible service facility. Groundbreaking for the rests with the company's ability new Elkhorn Service Center

, ,  : to establish a committed, sup- took place in early 1985. The

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portive, and productive work- $21 million facility will serve force. Therefore, a number of customers on the western-ty Performance 100% programs most edge of the metropolitan are aimed at increasing area and rural communities employee development and to the west of Omaha. Com-involvement. These programs pletion of the center is sched-not only help increase uled for early 1987.

(top) OPPD used'a'he# copter 10 deposit Apur j employee satisfaction and large sec80nahzing switches onto the anp

• motivation, but they are suc- When the new Ener97 Co.ntrol of the Unit No. 5 precipriafor at the North ' cessful in an operations sense Center is completed in mid-Omaha Station. The switches, each werghing as well' 1987, the facility will house t ton, are used to isolate part of the precipi- )j OPPD's Energy Management titor in the event of equipment failure. ,  ; One program in particular, System computer, System

.(bottom) New identifrcahon signs installed at { so m e an gement, has Operations Headquarters, and

- a/I OPPD offices, service centers, generating i proved so successful and has the Line Dispatching area.

plants, and substations give company facili. i been so weli received by Constructed directly behind ties a consistent and attractive appearance. employees involved, it will be Electric Operations Headquar-expanded to many areas of ters, the facility will serve as the company. The focus of the control center for OPPD's Resources Management, begun power system operations, as a trial program in OPPD's from production to distribution.

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Plans are also moving forward The new communications sys-

• for a new multi-story office building and parking garage tem is also an important link [_.

in OPPD's Buddy Alert pro-adjacent to the current Electric gram. Children in the OPPD Building. The two-building service territory have been F complex will be called Energy informed through an advertis- -

Plaza. Major features will ing campaign and by posters include expanded and more placed in elementary schools y'

accessible customer service that the presence of an OPPD /-

areas, ample customer parking, uniform or vehicle means a and a state-of-the-art off-peak " buddy" is nearby. With radio

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thermal storage heating and connections throughout the y air conditioning system. 13-county area. OPPD person-5 y 6 nel can readily summon emer- 34 _9, bamdy gi Attention was also focused in gency assistance, or just get P -

e 1985 on upgrading other facili- word home that a youngster is S V. M ties. Offices throughout the safe.

<p service area we,re remodeled, WJ including those in the Electric Another community service Building and in the rural areas. program, Child Watch, was i In addition, new identification launched last summer. Through !5 signs were placed at all OPPD OPPD's monthly customer I facilities, giving each a fresh newsletter, " Outlets," photo-

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and consistent appearance graphs and information about -

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missing children are seen by over 200,000 customer-I ~

'YI 'h de t cat on-owners in eastern Nebraska u ~-

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Employee training was a key each month. -

-x n concern in OPPD's Electric Electric Operations continued Operations Division during m -

its efforts during 1985 to 4 e 1985. A new four-year cable replace overhead lines with .

splicing apprenticeship program new underground equipment.

was established, and appren- A total of 44 miles of under-ticeship programs for linemen ground line was laid in Ken-and metering services person- nard and Weeping Water nel were expanded. OPPD vicinities. The lines will be stepped up efforts to cross-train energized by mid-1986.

linemen on the installation and repair of underground OPPD's major generating facil-lines. Linemen and foremen ties produced more than 6 8 are unde,rgoing intensive four- million kilowatt-hours in 1985' a two percent increase over week training programs which combine classroom experience 1984. Of that total. OPPD's I ;4W o

with simulated field work at nuclear plant, the Fort Calhoun a new underground training Station, produced more than facility at the Irvington Service 3.0 million kilowatt-hours. Coal-fired units at the Nebraska

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Center.

City Station and the North Omaha Station produced a

'N Communications throughout p  ;

OPPD's 5,000-square-mile combined total of approxi- '

m W 3.8 mWonyowatb 7 2; 3 service territory have been ,, ,

enhanced with the installation ours. AH gensating units {+ ~ ,

'j a-of a new 800-MHz mobile wera available to meet OPPD's ,

radio system. New radios have a@st summa mqWements. (W OPPtFs now h h Center ]

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The 1985 summer peak, ' p an aAW W, amy enew been installed in a11 requ' ired - emclent fiscary for more than 100 overhead _

vehicles, and all but one of established on September 6 i: ine, underground construcelon, catWe spacing,-

seven base operating stations, between 4 and 5 p.m., was in p ~and customer service personnel who serve w including transmission towers excess of 1.3 million kilowatts. [

customers in hmaior nomwn oon area.

and maintenance buildings, The Fort Calhoun Station was [

f' ave been constructed. taken out of service in late i n

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1985 OPERATIONS REVIEW (CONTINUED)

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% _ au - _ s . wm Se tember for a scheduled (CIS), scheduled to come on l refueling and maintenance out- line in 1986. CIS will allow y- age, the ninth since the plant employees greater flexibility went on line in 1973. During and speed in storing and

% the three-and-a-half-month retrieving customer information.

7 outage, 44 of the reactor's 133 A new computerized purchas-s fuel assemblies were replaced.. ing and inventory control sys-

%g Major maintenance and modifi-y j cation projects completed dur- tem became operational in September. The Material Man-g ,

ing the outage included a agement information System Q

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comprehensive inspection and cleaning of both steam gener- automatically tracks parts and

.y ators, installation of new feed- supplies and provides greater wa 1:_.

centralized control for all com-yn a "

_h\ p ng of the p t s inter- pany purchasing activities.

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nal electrical distribution The Corporate Planning Sys-system. tem also became operational Y In coordination with lifetime during 1985. This computer

' / extension studies at the model assists in developing

&<'  ; \ 629,600-kilowatt North Omaha II" "CIal plann,ng i scenanos of OPPD.s operations for up to g'

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Station, a major maintenance outage was completed on Unit 20 years in the future. The i *

• No. 5 in 1985. During the system will be used extensively outage, mejor portions of the to determine the effects of boiler and precipitator were vanous power supply options rebuilt, a new data acquisition and operating strategies on l computer system was installed, the utility s future operations.

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., ; and the turbine was modified OPPD's commitment to safety

- y P' < to better accommodate fre- paid high returns in 1985 as

'? quent load changes. the number of disabling on-

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/l} 4 At the 585,000-kilowatt the-job injunes was reduced

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'I . i Nebraska City Station, a com- compared to the year l -4 puterized maintenance order before. For its excellent record,

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processing system was OPPD received an honorable d' i i installed. The system is used to help OPPD track and mention in th,e American Public ower Assocadon,s annual S d- d' i

i schedule plant maintenance tasks during modification out-safety competition. Locally, the Omaha Safety Council pre-y* ages, as well as during normal sented OPPD with its industrial p -

operations. It is similar to the Safety Award of Honor - the f;rst-place award in its annual r

(' .. one in use at the Fort Calhoun safety contest.

Station since 1983.

Major steps were taken OPPD has high expectations th oughout the company to for 1986 and beyond. The upgrade computer operations' companywide efforts ,to put cust ers ir comb ed th eg pWE"M,.,g g;ca most notable was the installa-tiori of a new central process-for employees, should help (top) dPPD Customer SerWce W_. 'Ji. ing unit, an IBM 3081. The 1 new, larger computer system build a solid foundation of ser-

. Seve Mine , , e on m e W- 3' vice excellence and satisfac-tect Ralph G! ofthe Develop- ' was needed to accommodate ment CA, to discuss plans lbr the growing number of com- tion for both of these important

% constituencies' Pointe, un all-electric apartment complex puter programs and applica-under construction in: southwest Omaha-  ! tions being developed for a

. tbottom) Equipment Operator Gene Parrish- '# Y *'"S U9 Mistbvich carefutty inserts a nuclear fuel - ~\

the company. Among the new assembly into the new fuel storage rack at .

Computer programs worked Fort Calhoun Station: The assembly is one of -  ; on during 1985 was the Cus-44 fater inserted in the plant nuclear reactor. tomer information System 7

FINANCING AUDITORS' OPINION II in December 1946, Omaha Public Power Dis- Omaha Public Power District:

trict funded the purchase of The Nebraska We have examined the balance sheets of 2Ob iv ue nds e ssued in Omaha Public Power District as of December 31, February 1947 to pay off this loan. Since then, 1985 and 1984 and the related statements of

$1,417,200,000 of additional revenue bonds net earnings and accumulated earnings hava been soId. reinvested in the business and of sources of in January 1985, the District sold $60,000,000 funds for construction for each of the three years in the period ended December 31,1985.

of Electric System Revenue Bonds (the 1985 Our examinations were made in accordance Seri:s A Bonds) at an effective interest rate of with generally accepted auditing start,iards and, 9.29% The proceeds of the issue primarily accordingly, included such tests of the account-w:ra used to retire $50,000,000 of Tax Exempt ing records and such other auditing procedures Commercial Paper. Remaining proceeds were as we considered necessary in the used for a reserve required by the bond inden- circumstances.

ture, bond issuance costs, and for general construction projects. in our opinion, such financial statements present fairly the financial position of the District at The District retired $13,295,000 of revenue December 31,1985 and 1984, and the results '

bonds in 1985. These retirements bring the total of its operations and the sources of funds for of bonds redeemed and refunded through 1985 construction for each of the three years in to $579,145,000, leaving outstanding bonds the period ended December 31,1985, in con-of $880,055,000 at December 31, 1985. During formity with generally accepted accounting 1985, $51,071,000 of interest expense was principles applied on a consistent basis.

charged to operations on outstanding bonds, r: presenting an average anr,ual rate of 5.8%.

In 1985, the District reduced the authorized hval of Tax Exempt Commercial Paper from /

g [A

$105,000,000 to $75,000,000. As of December 31, 1985, $47,500,000 of commercial paper was DELOITTE HASKINS & SELLS Omaha, Nebraska outstanding and $7,500,000 was drawn against th3 supporting revolving line of credit agree- February 21,1986 ment. During 1985, $3,452,000 of interest expense was charged to operations on out-standing commercial paper, representing an av rage annual rate of 5.3% Outstanding notes and subordinated obligations at December 31, 1985, totalled $5,434,000. During 1985,

$479,000 of interest expense was charged to cperations on outstanding notes and subordi-nated obligations, representing an average annual rate of 8.8%

Gross Electric Plant amounted to $1,325,902,000 and Nuclear Fue: (at amortized cost) amounted to $169,352,000 at December 31,1985.

Accumulated earnings reinvested in the busin:ss increased $40,256,000 to a total of

$434,600,000 during 1985 while total assets incr:ased $17,158,000 to a total of

$1,447,166,000.

~

OMAHA PUBLIC POWER DISTRICT 12 BALANCE SHEETS, DECEMBER 3t,1985 AND 1984 ASSETS NOTES 1985 1984 (thousands)

UTILITY PLANT - At cost: 2,7 Electric plant (includes construction work in progress of $63,253.000 and $56,233,000, respectively) ... .. . .. $1,325,902 $1,262,803 Less accumulated depreciation ... ..... . ...... . . ... 369,358 336.776 Electric plant - net ... .. . . . . ... .... .. . . 956,544 926,027 Nuclear fuel- at amortized cost . .. .... .. . . .. . 169,352 162,658 Utility plant - net . . . . . . . . . ..... . .. .... ... . . . . . 1,125,896 1,088.685 SPECIAL PURPOSE FUNDS: 3 Construction fund .... .... .. . .. .. ... . . ... .. 3,836 22,340 Electric system revenue bond fund (net of current portion) .. . .. .... .. . .... 48,880 43,554 Debt service fund .. .. . . . .. .. ....... .. 9,908 9.934 Segregated fund (see contra) ..... . . . . .... ..... 4,146 4,280 Revenue fund - decommissioning . .. ... . . . . 9,903 5.671 Total special purpose funds .. . . ... . ... . .. ... 76,673 85,779 CURRENT ASSETS:

Revenue fund - cash . . . . . . . ... ... . .. .. ..... 30 28 Revenue fund - U. S. Govemment Securities (at amortized cost which approximates market) . .. . .... ... .. . 64,240 76,515 Electric system revenue bond fund - current portion . . . ... . 3 26,502 24,100 Accounts receivable - net ..... . .. . .. . . 18,933 27,558 Unbilled revenues . . .. . .. ...... .. . . . . . 14,200 8,700 Fossil fuels - at average cost . . .. ...... . . 20,033 22,076 Materials and supplies - at average cost . . ..... 21,572 19,576 Deferred production costs ... .. . ... . ... .. 5,607 5,946 Other . . .. . . . . . . .... .. .... 4,117 4,394 Total current assets . ... ... . . . . . .. .. 175,234 188,893 DEFERRED CHARGES . . .... . .. .. .. .... 4 69,363 66.651 TOTAL .. . . .. . .... . ..... . $1,447,166 $1,430.008 l

See notes to financial statements.

13 LIABILITIES NOTES 1985 1984 (thousands)

LONG-TERM DEST- 2 Electric system revenue bonds - net of current portion.

Serial bonds,3.5% to 9.2% due annually from 1987 to 2005 . .. . ..... ... . ... $ 233,005 $ 225,945 Term bonds, 5%% to 9 3% due at various dates from 1995 to 2017 . . . .. . .. . . 633,210 594,110 Total electric system revenue bonds ...... . . . . . .. .. 866,215 820.055 Electric revenue notes - commercial paper series .... ... 5 55,000 Subordinated notes due December 1990,6%% . ..... . 520 520 Subordinated obligations .. . ... ... . . . . 4,874 4.914 Total ....... .... ..... . 926,609

. . ... .. .. .. .. .. ... 825,489 Less unamortized discounts .. . .... .. . .. . .. .. . 9,514 9.106 Long-term debt - net . ...... ... . .. .. . . ... . 917,095 816.383 COMMITMENTS AND CONTINGENT LIABILITIES 7,8,9 LIABILITIES PAYABLE FROM SEGREGATED FUND (see contra) .. .. . .. . .. . ... ... .. ..... . 3 4,146 4,280 CURRENT LIABILITIES:

Current portion of electric system revenue bonds . .... . . 2 13,840 13,295 Current portion of other long-term debt . .. .. . ..... 40 36 Electric revenue notes - commercial paper series ... . .. 5 105,000 Accounts payable . . 22,954

.. . .. .. .... 23,194 Nuclear fuel disposal costs . . .. . . . . 22,841 Accrued payments in lieu of taxes .. 9,199

. ... . ... 9,387 Accrued interest .. . . .. . . . 22,616

.. . . ... 21,113 Other .. . 6,787

. . .. . . 5,001 Total current liabilities .

.. . . .. . .. . . .. 75,436 199,867 OTHER LIABILITIES:

Nuclear fuel disposal costs .. .. . .. .. . 4,418 Decommissioning costs . . . . . . . . . ... .. . . 9,903 Other .. 5.671

. . . . . .. . . . .. .. . 5,986 5,045 Total other liabilities . .. . .. .. . . . .. . . 15,889 15,134 ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS . .. . .. .. ... ... ... 434,600 394,344 T@TAL ..... .. . .. . . .. .. ... . . . ... . . $1,447,166 $1,430,008

STATEMENTS OF NET EARNINGS AND ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS 14 FOR THE THREE YEARS ENDED DECEMBER 31,1985 r.

1985 1984 1983 (thousands)

OPERATING REVENUES .. . . ... .. . .. .... $303,036 $305,999 $272.847 OPERATING EXPENSES:

Operation:

Fusi . . ... . ... .... ... ..... ...... 74,775 90,456 69,392 Other production ... . .. ... .. .. .. . . .. .. . . 28,831 18,751 23,826 Transmission ..... . .. . .. .... . . . 1,756 1,572 1,658 Distribution . ... .. . .. ... .. .. 9,684 9,002 8,358 Customer accounts .. .... . .. . .... .. ... .. 6,950 6,516 5,751 Customer service and information . . . . .. .. . 2,396 2,265 2,319 Administrative and general .. .. .. ... . . ....... 22,474 20.698 20,013 Maintenance .. .. .. .... . . . 25,572 27,741 25,633 Total operation and maintenance . . . ... 172,438 177,001 156,950 Depreciation ... . ...... . . . . ..... .. .... .. .. 38,515 37,279 36,038 Decommissioning .. . . .. . .. . . 3,602 3,531 1,781 Payments in lieu of taxes . . .. . .... ........ . .. 10,107 10.292 9.034 Total operating expenses . ........... .. ... 224,662 228,103 203,803 OPERATING INCOME . ... .. .. . 78,374 77,896 69.044 OTHER INCOME CREDITS (CHARGES):

Interest income . .... . . ..... . ... . 15,332 14,791 11,853 Allowance for funds used during construction . . . 2,850 2,382 2,178 Allowance for funds used for nuclear fuel .. ... . 5,391 5,321 5,693 Amortization of cancelled project costs .. . .. ... (5,181) (5,181) (5,181)

Other - net . . . . . . .. .. .. .. (894) (390) (266)

Total other income credits - net . . . . . . . 17,498 16,923 14.277 EARNINGS BEFORE INTEREST EXPENSE . . ..... 95,872 94,819 83,321 INTEREST EXPENSE . .. . . .... . ... ... 55,616 54,812 55,392 NET EARNINGS . . . . .. . . ... . . . . 40,256 40,007 27,929 ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS, BEGINNING OF THE YEAR .. .... . . .... . ... ...... 394,344 354,337 326.408 ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS, END OF THE YEAR . ... .. . . $434,600 $394,344 $354,337 See notes to financial statements.

STATEMENTS OF SOURCES OF FUNDS FOR CONSTRUCTION FOR THE THREE YEARS ENDED DECEMBER 31,1985 15 1985 1984 1983 (thousands)

SOURCES OF FUNDS:

From operations:

Net earnings .... . . . .. . $ 40,256 $ 40,007 $ 27,929 Charges (credits) to operations not affecting funds:

Depreciation . . . . . 38,515 37,279 36,038 Amortization of nuclear fuel .. . . .. 21,634 14,340 14,770 Allowances for funds used . (8,241) (7,703) (7,871)

Amortization of cancelled project costs . .. 5,181 5,181 5,181 Funds from operations . 97,345 89,104 76,047 From financings:

Long-term borrowings . . . 114,077 4,950 75,000 increase (decrease) in short-term borrowings . . . (104,451) 75,176 30,525 Long-term debt reduction .. . . (13,880) (88,331) (98,155)

Funds from (applied to) financings . (4,254) (8.205) 7,370 Funds applied:

(Increase) in net current assets (excluding short-term borrowings and current portion of long-term debt) (6,320) (3,047) (12,131)

Decrease (increase) in special purpose funds . 8,972 14,892 (16,789)

Decrease (increase) in deferred charges . (7,893) 196 3,427 increase (decrease) in other liabilities . 1,270 (23,095) (6,810)

Funds applied (3,971) (11,054) (32,303)

Allowances for funds used . 8,241 7,703 7,871 TOTAL $ 97,361 S 77,548 $ 58,985 USES OF FUNDS FOR CONSTRUCTION:

Electric plant . $ 69,032 S 57,426 $ 33,997 Nuclear fuel 28,329 20,122 24,988 TOTAL $ 97,361 $ 77,548 S 58,985 See notes to financial statements.

NOTES TO FINANCIAL STATEMENTS 16 FOR THE THREE YEARS ENDED DECEMBER 31,1985

1.

SUMMARY

OF SIGNIFICANT Nuclear Fuel Disposal Costs - Permanent disposal ACCOUNTING POLICIES of spent nuclear fuel is the responsibility of the Federal Govemment under an agreement entered Organization and Business - Omaha Public Power into with the United States Department of Energy District, a political subdivision of the State of (DOE). Under the agreement, the District is subject Nebraska, is a public utility engaged solely in the to a one mill per gross kilowatt-hour fee on all generation, transmission, and distnbution of efectn.c nuclear energy generation, which is paid quarterly to wer and energy and other related activities. The the DOE. The spent nuclear fuel disposal costs rd of Directors is authorized to establish rates. are included in the District's nuclear fuel amortization The District is net liab!c for Federa! and state :ncome and are collected from customers as part of or ad valorem taxes on property; however, payments fuel costs.

in lieu of taxes are made to vanous local govemments.

2. LONG-TERM DEBT the Dis are m n i[ed ne y ance The District utilizes proceeds of debt issues primarily with the Uniform Sysam of Accounts prescribed in financing its construction program.

by the Federal Energ/ Regulatory Commission. Electric System Revenue Bonds - Maturities of electric system revenue bonds outstanding at Accounting for Revenues - Meters are read and December 31,1985, due 1986 through 1990 are as bills are rendered on a cycle basis. Revenuea earned after meters are read are estimated and accrued as follows (in thousands):

1986 . . , $13,840 unbilled revenues at the end of each accounting 1987 ... . . ., . $14,775 period.

1988 .. . . . $15,470 Utility Plant - The costs of property additions, 1989 .. . . . . $16,200 replacements of units of property, and betterments 1990 . . $16,990 are charged to electric plant. Maintenance and The District's bond indentures provide for certain replacements of minor items are charged to operating restrictions, the most significant of which are:

expenses. Costs of depreciable units of electric plant retired are eliminated from electric plant Additional bonds may not be issued unlese esti-accounts by charges, less salvage plus removal mated net receipts (as defined) for each futurc expenses, to the accumulated depreciation account. year will equal or exceed 1.4 times the debt service on all bonds outstanding including the An allowance for funds used, approximating the additional bonds being issued or to be issued in District's current cost of financing electric plant con- the case of a power plant (as defined) being struction and the purchase of nuclear fuel, is capital- financed in increments.

ize.d as a component of the cost of the utility plant.

This allowance was computed at.6.0%, 6.3% and An amount at least equivalent to 12%% of gross 6.7% for both construction work in progress and operating revenue (as defined) must be spent nuclear fuel for the years ended in 1985,1984 and annually for maintenance, replacements, or addi-1983, respectively. tions to the electric system, or if not so spent s to be placed in a special fund to be used for Depreciation and Amortization - Depreciation is such purposes or for retirements of original bonds computed on the straight-line basis at rates based on (as defined) in advance of maturity.

the estimated useful lives of the various classes of in any three-year period, at least 7%% of general property. Depreciation expense has averaged business income (as defined) must be spent for approximately 3.4% of depreciable property in each replacements, renewals, or additions to the electric of the three years ended December 31,1985. system. Any deficiency is to be spent within two Amortization of nuclear fuel is based upon the cost years thereafter for such purposes or if not so thereof which is pro-rated by fuel assembly in spent is to be used for bond retirements in accordame with the thermal energy that each advance of maturity, assembly produces. Subordinated Obligations - In 1984, the District Deferred Production Costs - Certain production purchased the assets of the City Of Blair, Nebraska costs are recovered under the Fuel and Production Electric System for $5,950,000. The District incurred Cost Adjustment (FPA) clause of the District's rate an obligation of $4,950,000 payable in annual instal-schedules. These costs are deferred until they are ments collected by FPA billings. 2014 in of $48L815with connection Wing thisinteresttion.at acquisi 9%) through Deferred Charges - Certain costs and charges are deferred and amortized over the period that ratepay. 3. SPECIAL PURPOSE FUNDS ers are expected to benefit. The most significant The assets of the special purpose funds of the items are: District (Construction Fund, Electric System Revenue Deferred Financin9 Costs - Debt discount and Bond Fund, Debt Service Fund, Segregated Fund and Revenue Fund - Decommissioning) consist expense and amortizable charges relating to refunded debt are amortized ratably over the lives primarily of securities of the U.S. Government and of the related issues to which they pertain. rotated agencies, stated at amortized cost which approximates market.

Deferred Cancelled Project Costs - Fort Cal- The Construction Fund is to be used for capital houn Station - Unit No. 2 - Costs arising improvements, additions and betterments to and from the termination of contracts relating to Fort extensions of the District's electric system, or for Calhoun Station - Unit No. 2 are being amortiz2d payment of principal and intorest on Electric System over ten years through 1989. Revenue Bonds.

i I7 The Electric System Revenue Bond Fund and Debt 7. COMMITMENTS Service Fund are held by Trustees for the retirement The District's Construction Budget provides for of term and serial bonds and the payment of the expenditures of approximately $76,568,000 during relited interest. 1986 and $63,138,000 during later years, of which ,

The Segregated Fund represents customer deposits approximately $36,000,000 was under contract at and refundable advances. December 31,1985.

The Revenue Fund - Decommissioning was estab- The District has a coal supply contract which extends lished to cover the estimated cost of decommsssion- through 1998. Minimum future payments amount to ing Fort Ca!.houn Station - Unit No.1 when its $125,075,000. The coal contract price is subject operating license expires in 2008. The fund was to escalation based upon the supplier's costs. See creited as a result of a decommissioning plan Note 8 for transportation agreement.

adopted by the Distnct and additions are made to the fund monthly, Contracts with estimated future payments of

$34,666,000 are in effect for nuclear fuel. In addition, contracts with estimated future payments of

4. DEFERRED CHARGES $243,897,000 for the fumishing of uranium enrich-The composition of deferred charges at December 31, ment services extend to the year 2008.

1985 and 1984 was as fohows: The District has established a deferred compensation 1985 1984 plan for all eligible employees. All contributions to (thousands) the plan are made by the employees. By agreement, Deferred financing costs . . . . . . . $32,007 $33,293 contributions under the plan remain the property of Deferred cancelled project costs - the District until an employee leaves the District.

Fort Calhoun Station - Funds on deposit and related liabilities at December 31, Unit No. 2 16,836 22,017 1985 and 1984 of approximately $5,400,000 and Other . . 20,520 11,341 $3,400,000, respectively, are not recorded in the Total . . $69,363 S66.651 accompanying financial statements.

8. SUBSEQUENT EVENT - TRANSPOHTATION

5. ELECTRIC REVENUE NOTES - COMMERCIAL CONTRACT PAPER SERIES On February 19,1986, the Board of Directors The District has authorized the issuance of tax- approved an agreement to provide for transportation exempt commercial paper of up to $75,000,000 which of coal to the District's facilities. The agreement, is supported by a revolving credit agreement, expir- retroactive to January 1,1986, runs through 1998 ing in May 1987, with four financial institutions. At with minimum future payments under the contract December 31, 1985, the District had $47,500,000 of expected to be approximately $185,000,000.

commercial paper issued and outstanding with

$7,500,000 drawn against the revolving credit agree- 9. CONTINGENT LIABILITIES ment. At December 31,1984 the authorized level of borrowing under the commercial paper program Under the provisions of the Federal Price-Anderson was $105,000,000 and $94,500,000 of commercial Act, the District and all other licensed nuclear power paper was plant operators could each be assessed for claims drawn aganstissued and outstanding with the revolving credit agreement. The$10,500,000 in the event of a nuclear incident in amounts not to average borrowing rates at December 31,1985 and exceed $5.000,000 per incident to a maximum of 1984 were 5.8% and 6.2% $10,000,000 in any one calendar year.

The District is engaged in routine litigation incidental

6. PENSION PLAN to the conduct of its business and, in the opinion Substantially all District employees are members of of its General Counsel, the aggregate amounts its contributory pension plan and are not covered by recoverable from or to the Distnct, taking into account estimated amounts provided in the financial state-Sociil Secunty. Generally, the plan provides for . ments and insurance coverage, are not material, benefits at age 65 uith reduced benefits for earher retir:,ments. Provision is made annually for actuarially computed current costs, which were $4,829,000,

$4,811,000 and $5.078,000 for 1985,1984 and 1983, respectively. The District's policy is to fund pension costs accrued. Accumulated plan benefits and net assets at January 1,1985 and 1984 were as follows:

1985 1984 (thousands)

Actuirial present value of accumulated plan benefits:

Vested . . . . . . . $ 70,862 $ 63,094 Non-vested 6,696 6.169 Tot;.1 . $ 77,558 $ 69,263

~

Net assets available for bensfits $116,646 $104,662 The assumed rates of return used in computing the actuarial present value of plan benefits were 10.0%

for retired members and 9.3% for all other members of the plan at January 1,1985 and 1984.

SUPPLEMENTARY STATEMENT OF EARNINGS FROM CONTINUING OPERATIONS ADJUSTED FOR CHANGING PRICES 18 FOR THE YEAR ENDED DECEMBER 31,1985 (UNAUDITED)

Conventional Current Cost Historical Average Cost 1985 Dollars (thousands)

Operating revenues .. . .. . ....... ... ..... . . ..... . $303,036 $303,036 Total operation and maintenance expenses .. . . .... .. . ... 172,438 175,512 Depreciation . . ... .... .. . . .... .. ..... .. .. .. . 38,515 80,405 Decommissioning ... .. .. .. . ... ... ....... .. ..... .. 3,602 3,602 Payments in lieu of taxes ... .. .. . . .. ....... ... .. . .. 10,107 10,107 Total operating expenses ... . .. . .... . .............. . .. .. 224,662 269,626 Operating income .. . . .. . . . . . . . ... .. 78,374 33,410 Other income credits . ... .. . . .. ..... . .. . ..... . 17,498 17,498 Eamings before interest expense . . ... ........ ...... . .. 95,872 50,908 Interest expense . . .... .. . . ..... . .... . .... .. 55,616 55,616 Eamings (loss) from continuing operations ... .. . . .. $ 40,256 $_(4,708)

Increase in specific prices (current cost) of utility plant held during the year . ... ..... .... ... .... .. $ 55,130 Increase to net recoverable cost .... ... . .. ....... .. ...... 28,694 Effect of increase in general price level . . . ..... .. .. .... (75,264)

Excess of increase in specific prices after increase to net recoverable cost over increase in general price level . . ...... .... ... . 8,560 Gain from decline in purchasing power of net amounts owed . . . . . . ... .. . .. ...... 25,636 Net .. .. ... . .. .. ... .. .. . ... ........ $ 34,196 SUPPLEMENTARY FIVE-YEAR COMPARISON OF SELECTED FINANCIAL DATA ADJUSTED FOR THE EFFECTS OF CHANGING PRICES (UNAUDITED)

Year Ended December 31, 1985 1984 1983 1982 1981 i

HISTORICAL COST INFORMATION ADJUSTED FOR GENERAL INFLATION Operatmg revenues .. ... . .. . . _ $303,036 $316,917 $294,609 $260.032 $263,328 CURRENT COST INFORMATION Loss from continuing operations . .. . $ (4,708) $ (3,451) $ (15.556) $ (44.433) $ (38,936)

Excess of increase in specific prices after change to net recoverable cost over increase in general price level . . . ...... . $ 8,560 $ 5,779 $ 6,876 $ 5,272 $ (59,443)

Net assets at year.end at net recoverable cost . .. ...... . . $427,698 $402,719 $376,170 $359,674 $371,449 GENERAL INFORMATION Gain from decline in purchasing ,

power of net amounts owed .. .. ... $ 25,636 $ 28,322 $ 28,907 $ 30,892 $ 72,577 l Average consumer price index . .. .. 322.2 311.1 298.4 289.1 272.3 See notes to supplementary financial data.

~

NOTES TO SUPPLEMENTARY FINANCIAL DATA ADJUSTED FOR THE EFFECTS OF CHANGING PRICES FOR THE YEAR ENDED DECEMBER 31,1985 (UNAUDITED) 19 The supplementary information is supplied in accord-anc? with the requirements of FAS Statement No. from their historical cost in nominal dollars. The District's rate structure limits the recovery of fuel

33. Financial Reporting and Changing Pnces, for the through the operations of adjustment clauses or purpose of providing certain information about the adjustments in basic rate schedules to actual costs.

effects of changing pnces. It should be viewed as an For this reason fuel inventories are effectively mone-estimate of the approximate effect of inflation, rather tary assets.

th".n as a precise measure.

Utility Plant, Depreciation and Amortization - Effect of the District's Rate Structurc - Under Current cost amounts rettect the changes in specific the rate making structure adopted by t,he District., ,

onty the historical cost of utility plant is recoveraose prices of the utility plant from the date the plant in revenues as depreciation or amortization, was acquired to the present. The current cost of the To properly reflect the economics of the District's utility plant represents the estimated cost of replacing.

existing plant assets. The current cost of the electnc rate structure in the Statement of Eamings from ptnt was determined by indexrg the surviving Continuing Operations Adjusted for Changing Prices, plant by the Handy-Whitman index of Public Utility the reduction of the utility plant should be offset Construction Costs. The electric plant was aged by the gain from the decline in purchasing power of on the basis of clearings from construction work in net amounts owed. During a period of inflation, process to electric plant in service. The current cost holders of monetary assets suffer a loss of general of nuclear fuel in the reactor was based upon the purchasing power while holders of monetary liabilities actual cost of the ;riost recent assemblies to be experience a gain. The gain from the decline in placed in the reactor. The cost of nuclear fuel was purchasing power of net amounts owed is primarily not adjusted from historical amounts. The current attnbutable to the substantial amount of debt which year's provision for depreciation and nuclear fuel has been used to finance the utility plant. Since amortization was determined by applying the District's the depreciation and amortization on this plant is effective depreciation and amortization rates :o limited to the recovery of historical costs, the District current cost amounts of the utility plant- does not have the opportunity to realize a holding gain on debt and is limited to recovery only of the inventories - Fossil fuel inventones and the cost of embedded cost of debt capital full used in generation have not been rest,ited NET RECEIPTS AND DEBT SERVICE COVERAGE FOR THE FIVE YEARS ENDED DECEMBER 31,1985 (UNAUDITED) 1985 1984 1983 1982 1981 Operating revenues . . (thousands)

Operation and maintenance

$303,036 $305,999 $272,847 $233,319 $222,546 expenses . . 172,438 177,001 156,950 145,666 136,135 Payments in lieu cf taxes 10,107 10,292 9,034 7,565 6,400 N:t operating revenues 120,491 118,706 106,863 80,088 80,011 inv:stment income (1) . . . . 5,780 5,012 5,058 5,307 4,798 Net receipts l

$126,271 $123,718 $111.921_ $ 85.395 $ 84,809 Total debt service (2) . . .

$ 65,060 $ 60,162 $ 60,528 $ 60,470 $ 59,826 Debt service coverage . . 1.94 2.05 1.84 1.41 1.41 (1) income denved frorn the mvestfrient of monefs e the Debt Servce Fund and the Reserve Account of the Electnc System Revenue Bond Fund under the Distnct s bond mde dures (Resolutiort No 19 and Resoluton No.1788).

(2) Total Debt servce for both Resolution No.19 and ResoWtion No.1788 Bonds is accrued on a calendar-year basis simdar to the corn ~Aation of Net Receipts. Interest funded from bond proceeds is not included 6n Total Debt service.

20 ELECTRIC SYSTEM REVENUE BONDS OUTSTANDING (In Thousands) as of December 31,1985 . ..

TWELVE IdONIN6

• 1977 ISSUE 1977 65UE 19*7 ISSUE 11051560E - title 0

- 1954155UE 1918 ISSUE 1961 ISSUE 1918 ISSUE ; 19E4 6SOE ' 1900155DE t9'2 ISSUE ' 1973 65UE SERIES A" SERES B SERIES C" asHE5 A - R0004RV t p Total . Total :

Date . Int Int i Int ' Int. Int Int Int T Inr. . Int . Int Int ' Int ' Pnnopal ACCrung. Dett i Feeruaryl , Rate Amt Rete Amt Rate Amt Rule Amt - Rate Amt Rate Amt Rate Amt Rate Amt ~ Rate Amt Race Amt_ Rate Amt . Rate Amt. Maturtles inessest . $srvue 1986 3 1.400 3% 500. 3% 1.000 4% 1.040 4% 2.200 4h 950 4 80 3 705 ~ 5 600 4 10 2.365 e 13 840 51.000 46.500 1987 - . 3*9 500

• 3't 1 Uuu og i.330 ' 44 2.200 4 is 1 - G5G 4 3G 3.51G 510 713 4 80 1.300 0 - - 4 SO 2.550 t 45 14.?75 n 51.069 e5.944 1988 3 % 500 3% 1.000 4% 1.250 4 % 2200 4 90 900 5 4 125. 5 15 745 4 90 1.500 : 4 85 2650 650- Sto 15 470 50.307 . 46.867 1988 - 3 % 1.000 '4 4 1.400 4 % 2 200 4 90 1.000 5 4 350 5 20 700 5 2.000 - 4 95 2 925 6 75 546 16.200 '

40.000 . 86.400 1900 .. 3 % 1 000 .4 4 1.425 4'a 2.300 5 1.000 5 to 4 590 - 5 % 8'9 5 15 2.250 - 5 3 015 7 500 16 990 ' 46.804 66.874

'191 3 % 1.000 4 4 1.500 4 % 2.300 5 1.J00 5 10 4 645 5 30 . 800 5 30 2 600 K 5 05 3.100 7.25 635 17.840 48.066 06.006 1902 44 1.500.4% 2.300 5 ' 1.000 5 20 5.110 . 5 30 905 5 40 3.850 - 5 to 3.380 7.50 006 18.730 47.177 , 05.907 1983 44 1.500 44 2.300 5 1.000 5 20 5.390 5 40 950 54 4 150 ' 5 20 3 620 7 75 ' 745 19 655 48,222 - 06.077 1994 44 1.500 4% 2.400 5 to 1.100 5 20 5 685  : 5 40 1.000 5 60 45001 5% 3.720 0 010 20.715 46.207 e6.972 1986 '4% 1.500 4% 2 000 5 to 1.100 54' 6.000 Sh* 1.060 5 70 4.900 - 5 30 3.970 0 20 000 21.000 44.122 86 922

. 1986 4 1.500 4% 2 400 5 to 1.100 5%* 6.330 - Sh* 1.110 5% 5.350 5 40 900 22.920 42.966 86.875 1987 4% 2400 5*0 1.100 5%* 6 680 Sh* 1.170 5 80 7.300 5 45 41704 040 4.485 00 ~ 1 945 24.180 e1.714 86.806 1900 4 2.500 44 1.100 54' 7.045 5 %

• 1.236 5 85 7 900 ' 5% 4 590 8 10 ' 1.145 25.515 40.371 66 806 1989 4% 1.100 54' 7 430 5 %

• 1.300 5 90 10.900 . 5% 4.960 8 80 1.255 26 945 30.965 05.9 0 2000 54' 7.840 ' 5 %

• 1.370 6* 12.600 5%* 5.335 8% 1.300 20=525 37.402 86.927 2001  ; 5%* 8 275 5%* 1.450 6* 13 450 , . 5%* 5.470 0 90 1.515 30.160 36.717 - 66.877 2002 5%* 6 725 5 4

• 1.525 6' 14.350 - 5%* 5110 9 1.006 31.975 33.982 . 46.W7 2003 i 5%* 9 205 ' 5 4

• 1.610 6* 15.250 ' 5%* 5955 910 1.830 33 850 32.005 ' 06.406 2C04 5%* 9 715 .- 6* 11.300 - 5%* 6820 915 2.015 35 050 30.025 06.075 2006 54* 10 250 - 6- t8.550 ' 54* 6 970 9 20 2.215 37.985 27.800 46.813 2005 54* 10.810 6* 19.900 . ~ 5%* 7.140 9 %

• 2.440 40 290 25.020 06.910

- Sh*

2007 6' 30.100 - 9 885 9%* 2.006 42 670

• 23.200 05.870 2000 64* 12.900 5 %

• to 780 0%* 2.900 26.640 20 505 47.226 2005 64* ?3.670 5 90* 11.200 9%* 3.256 28 125 14.902 41.077 2010 64* ' 14.400 5 90* e1.730 9 30* 3.506 29 005 t7.103 45.9 8 2011 - 6%* ~ 15.300 5 90* 12.345 9 30* 3960 31.655 15.190 ~ 46.846 2012 44* 16 205 5 90* 13.005 9 30* 4.350 33 640 13.153 46.793 2013 - 04* 11.200 5 90* 13 715 9 30' 4 790 35 765 10.904 46.749 2014 64* 18 295 5 90* 14.435 9 30' 5.275 38 005 0.672 46.677 2015 64* 19.305 5 90* t5 215 9 30* 5 810 40 420 6.200 ' 40.029 2016 6%* 20.566 5 90* 16 775 37.330 - 3.543 40.913 2017 64* 21.790 21.790 - 1.336 23.125 Total Outstanihnt 1.400 1.500 6 000 15.265 30 100 14 490 140 015 2 19.270 200.000 ' 170.000 222.015 to 000 660.055 f.007.905 1.808.050 tones Rassemed to 113t95 13 600 5.500 ' 11 000 - 9.735 14 900 : 5,510 29 985 ~ 5.;30 '

7.185 103 145 On9'nal leeus 15 000 7,000 17 000 25 000 45 300 - 20.000 ' 170 000 - 25.000 200 000 170.000 229 200 60.000 983.200

• term Bonds "The 1975 Seres 0 Bond iss.4 eas refunded by the 1977 Senes A issue

• "The 1976 Senes A and 0 Bond issues see refunded tpy the 1977 Se*es C issue

l 1985-1984 COMPARISONS 21 mdlions of dollars OPERATING REVENUES Percent (thousands) Percent of Year of Year increase 303.0 ciass,fcaton 1985 Total 1984 (Decrease) 272.8 Resdential . . ...

$111.975 37 0 $116.368 (3 8)

General Service - Small . 97.321 32 1 98.300 (1.0)

General Servce - Large . 55.360 18 3 55.444 ( 2) 222.5 Govemment and Municipal . 7.388 24 7.099 41 194. Other EMhs UIMes 21.451 7.1 25.129 (14 6)

Accrued Unbilled Revenues 5.500 18 (600) 1.016 7 105.7 Total Eiectnc Revenues . $298.995 98 7 $301.740 ( 9)

M,scenaneous Revenues 4.041 13 4 259 (51)

Total Operating Revenues . $303.036 100 0 $305.999 (1 01 millions of kilowatt-hours KILOWATT-HOUR SALES 6.468 '*'

6.261 class.1caton 5697 5,995 5,219 Resdental . 1.966.119 32 8 2.041.395 (3 7)

General Servce - Smalt . 1.926 936 32.1 1 940.767 (.7)

General Servce - Large . 1.497.052 25 0 1.471.372 17 4,629 Government and Munopal 75 279 1.3 74 696 8 Other Electnc Utilmes 529 759 88 691 792 (23 4)

Total Energy Sales 5.995.145 100 0 6 220 022 (3 61 mdhons of dollars OPERATION AND MAINTENANCE EXPENSES (thousands) 172.4 157.0 classificaron 136.1 Geneat.ng Empense $124.458 72 2 $136.118 (8 6)

Purchased and Interchanged

• Power . 15.263) (3 0)

(9.021) 41.7 112.0 Transmisson and Destributen . 21.061 12 2 20.114 47 Customer Accounts . 6.950 40 6.516 67 Customer Servce ar4 64.5 Informaton . ..

2.396 14 2.265 58 55.5 Administrative and General . 22 836 13 2 21 009 87 Total Operaton and

. Maintenance Expenses $172 438 100 0 $177 001 (2 61 thousands of Customet i AVERAGE NUMBER 229.1 OF CUSTOMERS

• 219.4 classifcaron Resdential . . 201.662 88 0 209 197.750 20 General Service - Smalt . 26.966 11.8 26.271 26 General Servce - Large . 75 -

73 27 201.0 Other 397 2 407 (2 5) 193.1 Aveage Customers . 229.100 100 1 _ 224.501 20_

' Average Total Twelve Months Ended December

22 ELECTRIC STATISTICS 1985 1984 1983 1982 1981 1980 1979 1978 1977 1976 Total Utility Plant, including Nuclear Fuet (at year end)

(m thousands of douars) . 1.495.254 1.425.461 1,365 553 1.323.435 1.286,174 1.223 659 1.167.444 1.072,189 946.864 825.597 Bonded indebtedness (at year end)

(m thor, sands or do,lars) 880,055 833.350 846.505 859.135 870.725 881.015 890 930 900,480 890.480 699.344 Operstmg Revenues (m thousands of dollars)

Resdent al . ...... 111.975 116.368 108.722 89.949 77.500 78.708 65.388 60.819 54.392 51.684 General Servce - Small 97.321 98.300 82.880 72.495 60.992 57,515 49.581 44.277 41,197 38.592 General Service - Large 55,360 55.444 46.226 41.293 36.345 34.291 29.249 24.916 22.217 21,162 Government and Mancpal 7,388 7.099 6.519 5.570 4.516 3.983 3.462 2.541 3.282 3.260 Other Electnc Uthtes 21,451 25.129 22.958 21.867 40.003 49.931 44.008 12.926 9.081 4.285 Accrued Untuned Revenues 5,500 (600) 1.900 (800) 1.000 600 500 M.scellaneous 4,041 4.259 3 642 2.945 2.190 1.986 1.899 1.637 1.636 1.593 Total 303,036 305.999 272.847 233.319 222.546 227,014 194.087 147.116 131.805 120.576 Operation & Maintenance Exper.ses Charged to Operations E

(e thousands of donars) . 172.438 177.001 156.950 145.666 136.135 135 629 112.045 86.237 64.461 66.688 Payments in Lieu of Taxes (m tMusands of donars) 10,107 10.292 9.034 7.565 6.400 6.191 5.252 4.836 4.428 4.224 Net Operstmg Revenues before Depreciation and Decommisslomng (n thousands 01 dcWars) 120,491 118.706 106.863 80.068 80.011 85.194 76.790 56.043 62.916 49.664 Net Earnmgs Reinvested in the Business (sn thousands or donars) 40,256 40 007 27.929 1.880 6.323 9,162 25 452 19.043 25.015 18.068 Kilowatt-Hour Sales (m thousands)

Res4ential .. . .. 1,966,119 2.041.395 2.115.6 % 1.898.606 1.824.285 1.952.851 1.835.250 1.881.529 1,717.117 1.665,518 General Seryce - Small 1.926,936 1.940.767 1.830.190 1.743 804 1.691.815 1.684.631 1.666.849 1.649.361 1.580.095 1.500.223 General Servce - Large 1,497,052 1 471.372 1,384.986 1.334.043 1,411.394 1.431.067 1.438.732 1.382.366 1.302.821 1.270.736 Government and Mancpal 75.279 74.696 74.781 74.388 74.444 75.325 74 653 77.675 127.367 144.932 Other Electr<. Utmt.es 529,759 691.792 590.987 501.704 1.258.803 1.275.171 1.452.337 642.399 491.884 229 073 Total 5,995,145 6.220.022 5 996.640 5.552.545 6.260.741 6.419.045 6.467.821 5.6J3.330 5.219.284 4.810.482 Number of Customers (average per years Resdental . . .. 201,662 197.750 193.638 191.808 190.451 187.802 185.358 182.156 178.259 174.331 General Servce - Sman 26.966 26.271 25.245 24.264 23.833 23.541 23.484 22.919 22.250 21.824 General Servce - Large 75 73 73 73 75 89 88 85 80 84 Govemment and Munopal 391 400 392 403 418 403 386 363 363 351 Other Ewtnc Utsties 6 7 7 8 10 12 15 16 12 to Total 229.100 224 501 219.355 216.556 214.787 211.847 209.331 205.539 200.964 1 %.600 Residential Statistics (average) kWh Customer .. 9,750 10 323 10.926 9.898 9.579 10.398 9.901 10.329 9 633 9.554 Dollar Revenue Customer 555.26 588 46 561 47 468 95 406 93 419 10 352.76 333 89 305 13 296 47 Cents kWh 5.70 5 70 5 14 4 74 4 25 4 03 3 56 3 23 3 17 3 10 Generating Capability (at year end)

(>n bloearts) 1,896,200 1 994.500 1.997.500 1.997.500 1 992.100 1.979.800 1.960.000 1.382.000 1,373,700 1,371,700 System Peak Loads (,n Mowafts) 1,33'.200 1.383.900 1.411.500 1 330.200 1.382.400 1.348.400 1.265.200 1.257.300 1.222.900 1.188.100 Net System Requirements (Mowatt-hours m thousands)

Generated .. ... 6.850.069 6.712.772 6.302.725 6.255 287 6.667.831 6.581.819 6.823.834 5.538 844 5,631,403 5.092.064 Pu' chased and Net Interchanged. (915.987) (860.382) (483.636) 1868 271) (1.335.512) (1.084.095) (1.413.746) (163.599) (586.776) (165.542)

Net 5,934.082 5.852.390 5 819 089 5.387.016 5.332.319 5.497.724 5.410.088 5.375.245 5.044.627 4.926.522

( ) Denutes Negatve

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ht OPPD CORPORATE OFFICERS 23

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1 1

Morris F. Miller

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m Chairman of the Board 5 Dennis D. Jorgensen

( Vice Chairman of the Board j Gene P. Spence

Treasurer Warren R. Swigart i Secretary E- Bernard W. Reznicek E President c Chief Executive Officer J<

k Eldon C. Pape r: Senior Vice President '

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Assistant Treasurer

Assistant Secretary s ' - =

[ William D. Dermyer

? Vice President '

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u,  ! a Kenneth S. Fielding -

$ Vice President " ' '

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William C. Jones E

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h Fred M. Petersen *

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, Dayton D. Wittke +

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2 Martin L. Champion .

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Assistant Secretary

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4 John W. Marcil ~

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4 Assistant Treasurer '

Assistant Secretary ~

s Herbert H. Voss s

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i Assistant Treasurer

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j Assistant Secretary c

Carol J. Kelley Assistant Secretary 7:

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Robert C. Learch 1 Assistant Secretary a '-

Charles P. Moriarty -i

_ Assistant Treasurer 4 Ronald W. Short Assistant Treasurer i:

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Omaha Public Power District A business-managed. pubhcly owned electnc util ty E

An er, sai opportunity employer without regard to race, sex. age or impairment r

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Omaha Public Power District 1623 Harney Omaha, Nebraska 68102 2247 402/536 4000 April 14, 1986 LIC-86-158 Mr. H. R. Denton, Director Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, DC 20555

Reference:

Docket No. 50-285

Dear Mr. Denton:

Annual Financial Report Attached is one (1) copy of Omaha Public Power District's 1985 annual fi incial report, as required by 10 CFR 50.71(b)

Sincerely, R. L. Andrews Division Manager Nuclear Production RLA/JRG/me cc: LeBoeuf, Lamb, Leiby & MacRae 1333 New Hampshire Ave., N.W.

Washington, DC 20036 E. G. Tourigny, NRC Project Manager P. H. Harrell, NRC Senior Resident Inspector V

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