ML20070T588

Omaha Public Power District Annual Rept 1990

ML20070T588
Person / Time
Site:	Fort Calhoun
Issue date:	12/31/1990
From:	Gates W OMAHA PUBLIC POWER DISTRICT
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
LIC-91-116R, NUDOCS 9104040302
Download: ML20070T588 (27)

Text

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Omaha Public Power District 444 South 16th Strwt Mall Omaha, Nebraska R$102 2247 402/636 2000 April 1, 1991 LIC 91 ll6R U. S. Nuc. lear Regulatory Commission Attn: Document Control Desk Mail Station Pl-137 Washington, DC 20555

Reference:

Docket No. 50-285 Gentlemen:

SUBJECT:

Annual Financial Report Please find enclosed one (1) copy of Omaha Public Power District's 1990 Annual Financial Report, as required by 10 CFR 50.71(b).

If you should have any que:tions, please contact me.

Sincerely, M

W. G. Gates Division Man er Nuclear Operations WGG/sel Enclosure c:

LeBoeuf, Lamb, Leiby & MacRae (w/o Enclosure)

R. D. Martin, NRC Regional Administrator, Region IV (w/o Enclosure)

W. C. Walker, NRC Project Manager (w/o Enclosure)

R. P. Mullikin, NRC Senior Resident inspector (w/o Enclosure) 910404030290i$3$

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\\)MAHA PUBUC POWER DISTRICT EXECUEll'E OfflCES CONTENTS Energy Piaza 444 South 16th Street Mall OPPD Service Area Map.

3 Omaha, Nebraska 68102 2247 Hig' hhghts 5

TRUSTEES Chairman's Report.

67 Morgan Guaranty Trust Company of New Wrk.

New Wrk, New Wrk (1961,1966.1968, and 1969 Board of Directors 7

Bonds)

President's Report.

89 The First National Bank of Chicago. Chicago. Ilknots Vice Presidents 9

(1972,1973. 1977 Senes A. B, and C,1985 Senes A.

Operations Review 1014 1936 Senes A. and 1989 Senes A Bonds)

Y'"**C'*9 15 PAYING AGENTS Morgan Guaranty Trust Company of New Wrk, New independent Auditors' Report.

15 Wrh. New Wrk (1961,1966.1968.1969.1972. '973.

Balance Sheets.

16-17 1977 Senes A. B, and C,1985 Senes A,1986 Genes A, Statements of Net Eamings and Accumulated and 1989 Senes A Bonds)

Eamings Reinvested in the Business 18 Continental likno:s National Bank and Trust Company Statements of Cash Flows.

19 of Chicago, Chicago. Ilknois (1961.1966,1968, and 1969 Bonds)

Notes to Financial Statements 20 23 The First National Bank of Chicago, Chicago, Ilhnois Net Receipts and Debt Service Coverage.

23 (1972,1973, 1977 Senes A, B and C,1985 Senes A.

19901989 Compansons 24 1986 Senes A, and 1989 Series A Bonds)

Electnc System Revenue Bonds Norwest Bank Nebraska, N A. Omaha. Nebraska Outstanding.

25 CENERAL COUNSEL Electric Statistics.

26 Fraser. Stryker, Vaughn. Meusey. Olson. Boyer &

OPPD Corporate Officers.

27 Bloch, PC.. Omaha, Nebraska OPPD SERVICE AREA UPPD SERVICE AREA:

5,000 SQUAREMILES

_3 OPPD serves 585,000 people in all or part of i

13 counties in eastem Nebraska. Electnc service J.

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is provided to the following 49 incorporated "C'.t_

communities at retail:

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Awo cessm tesnya rooers L._ _

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VS,e y OQif rff!CdFOOO MJdXA W3ShWgtan Poys TuAn Gretna Nc erson Wateso 64T HefmdO Tf th EW9C1 VA'epseg Ca ter Lake here Osna We OJ N3 )

ItV3 Pa,911on Winskm

'l e< *o s cec 1N Difs Kennard Pt 4 u Y utaq i

CEddr Cfe9 LOV15l3 nEIT oPPD are sews Ek Cm Greenwuod sea u + r>:1 Tecumsen at vA:4esme 3

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OPERATING REVENUES AVERAGE RESl0ENTIAL USE Operating revenues for 1990 Average annual use per residen.

were $386.648.000, an increase tia! customer in 1990 was 10.500 of $11.005.000, or 2.9% from knowatt-hours. an increase of 61 l

I 1989 operating revenues of or 0 64 from the 1989 average of iI

$375.643.000.

10.439 kdowatt hours 1

OPERATIONAND AVERAGE RESIDENTIAL COST m)

L MAINTENANCE EXPENSES The Distnct s residential custom-Operation and maintenance ers paid an average of 6 65c per

.M expenses for 1990 were knowatt hour dunng 1990 com-

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$241.409 000. a decrease of pared to 3 39c per knowatt-hour in g

,795.000. or 1.9% from 1989 1946, OPPD s in:tia! year of f

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operation and maintenance operation.

oo%,os m a.oe ra cc. nar, av

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expenses of $246.204.000.

1990 CONSTRUCTIONEXPENDITURES puray vw n e.e an,.na,.'a r., "e,n en

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% "' "N CET OPERAT/NG REVENUES Expansion and improvement of e-,n.m.ve n m.., eg.n;, w Net operating revenues. before system facdities dunng 1990 depreciation and decommission-required net construction ing. were $130.869.000, an expend:tures of $93.600.000.

increase of $15.247.000, or 13 2% from 1989 net operating revenues of $115.622.000.

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NEYEARNINGSREINVESTED

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Net earnings reinvested in the

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business totaled $40.337,000, an

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36.3% from 1989 not earnings

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reinvested in the business of

$29.584,000.

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,1 GENERAL BUSINESSSALES

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General business sales to Distnct customers were 6.485,466.000

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m, Y-knowatt-hours in 1990, an increase of 113.623.000, or 1.8%

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from 1989 sales of 6.371.843.000

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orvo e nea 1ree Pv,wt on P mam pwaen is,as to cavuna, o mn: awns to v.c puoase AVERAGE NUMBER OF

.voan"& eves v w useu coven am waxnawn awaue n. war vronw CUSTOMERS The Distnct served an average total of 249.060 customers in 1990. an increase of 3.891, or 1.6% from the 1989 average total of 245.169 customers.

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L'HAIRMAN'S REPORT For the Omaha Pubhc Power nuclear power plant Major D;stnct.1990 tumed into a much pro > cts completed include a better year than first expected.

chemistry and rad:ation protection a

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Our customers bought more building a radioactive waste

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electncity than we thought they building. and the installation of a 1

would, and the cost to them for control room simulator in the that electncity was less than we training center. Construction also N...

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1. 97 had forecast began on a new 100.000 square-foot administration budding at the j

4 9 A hotter than-normal summer plant. That project should be Ab accounted for much of the in-completed in mid 1991.

q crease in electnc energy sales.

,Y as well as sales to other utihties in all. OPPD spent $93 0 mdhon I

that were more than doub'e the for capital improvements of amount planned Total sales all types in 1990. including exceeded 6 6 bilhon kilowatt-

$241 milhon at Fort Calhoun hours, and operating revenues Station totalled $386.6 milhon The financial stabihty reflected in FredericA / U1nch A 3.4 percent general rate in-this arg,al report for 1990 will

$[NE$Nw crease, the first in hve years, took "rtiro.) fe OPPD in 1991. Our rym, cm, rne effect January 1,1990 With that corporre planning does not increase, the average remdential include he implementation of a cost in 1990 was 6.65 cents per omeral rate increase this year.

kilowatt-hour,2 3 percent less 1 nas f act. together with anticipated than had been projected. This lower revenues from the Fuel happened pnmanly because of and Production Cost Adjustment.

management's success in reduc-means that customers will be ing production costs. These paying a lower pnce for their reddons resulted in more than electncity in 1991. We're fore-

$6 9 million being retumed to casting a 2.4 percent drop to customars dunng the last seven 6.49 cents per kilowatt hour in the months of the year through the average pnce for residential cus-Fuel and Production Cost Adjust-tomers and about a 1.4 percent ment on their month ly Dills dochne to an average 5.73 cents per kdowatt hour for all retail The net emniny picture was also customers brighter than anticipated, amount.

ing to $40.3 rnilhon at year end Assuming normal weather This compar( s to $29.6 milhon patterns prevail in 1991, we in 1989 and equals the all-time expect moderate growth in energy high for eamings by this utlhty, sales of 31 percent. Operating achieved in 1985. The year revenues will increase by only ended with a return on equity

$3 7 milhon, however, because of 7.2 percent. No long-term less revenue will be recoveied borrowing was required through the Fuel and Production Cost Adjustment Net earnings of Maior expend >tures in 1990 were F30.t mahon are anticipated and reined to improvements at the a return on equity of 5 0 percent Fort Calhoun Station. OPPD s is forecast 6

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M X Il0ARD OF DlRECTORS Capital expenditures in 1991 are projected at $126.1 million, mostly F

for expanding and improving exist-ing production plant and transmis-c J' o

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sion and distnbution plant f acilities e

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for both the immediate and future N

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No long term borrowing is antici-pated but we expect to issue another $15 million in tax-exempt commercial paper 1o maintain

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reasonable cash balances.

wecna"u-r,eaw swwray v.essevi

.Myes an ass Avines g Laus in addition to financial stability, ame cre.e,

nwe,4 ann aumare ergr no,.

e a"d /'rew"t Mme oh'm the utility is also enjoying a peno1 of Board stability. In Novembet, i'76,;,%"*"""""

voters returned Directors Dennis D. Jorgensen, Eugene T.

Mahoney and Frank J. Wear to 1

l office for new six year terms. thus l

O maintaining continuity on the ii

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4 They and their fellow directors,

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Keith B. Edquist, John K Green, Michael J. O'Hara and Gene P.

Spence, have contnbuted signifi-h cantly to the success of this utility and are commended for their xerrn e rsqu,,o conn,,0 sorgensen cugene 7.ssanoney service fDade">b 'r

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Crve? E nane 0% or i neat:ve Dawto?.

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• ei c 7'a' sad o" % mo"S O'"ed h o'uma" Hi!.tcry may record 1990 as a N'""# C# '

• 6" difficult year economically - a year of recession for some, of stagnant growth for others. But for OPPD, it was a year that saw no wavering in conimitment -

g commitment to customer service, efficient operatians, and financial

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stability and strength. Tnat remains our commitment for 1991 also - excellent service at the lowest possible price.

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preuoem Frederick J. Ulrich

""*"d * """*d' Co 7' Chairman of the Board 7

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y u REEDENT'S REPORT Emphasis on the long-as well as achieve excellence at Fort the short term interests of our Calhoun Station. Most of those customer owners was highly safety enhancement efforts were vis,ble at Omaha Pubh: Power completed in 1990, and the plant a

9 Distnct in 1993 has recotved much higher ratings j

from the Nuclear Regulatory q'.

g In the short term, the utthty Commission because of them.

Y pt continued to meet customer Nuclear costs began returning requirements for an adequate, to a more normal pattern in 1990 n

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rehab!e and affordable power The plant remains a key generator 1

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for OPPD, producing 31 percent N, M6

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of the utihty's total generation For the long term, the utihty

• j in 1990' initiated efforts to address future capacity neecs. implemented From a performance standpoint.

7 programs to enhance efficiency 1990 was a banner year for and cost awareness in nuclear the coal fired Nebraska City operations. and continued inten.

Station. The plant was available sive efforts to assure availabihty to produce electncity at full load Fred M Petersen 94 3 percent of the time dunng pgg years ahead the 12-month penod poor to co # r e. m CN September 1 when its scheduled The OPPD Power Supply Study, an That a year in the making, povides maintenance outage beg' record for a valuable tool for more specific s an all-time availabihty the 585,000-kilowatt unit, which future planning. The study sees a need to double current generating also set a monthly production record of 371,484,000 kilowatt-capacity over the next 25 years It hours last March and an annual recomrnends and provides a availabikty record of 82 percent.

general timetable for adding in au. Nebraska City Station 1.840.000 kilowatts of capacity in produced 40 percent of OPPD's nearly equal amounts of combus-generation in 1990.

tion turb;ne combined. cycle turbine and coa! fired generation The North Omaha Station, OPPD's oldest operating plant The study also recommends that which houses five coal fired untts, OPPD commit resources to also performed well in 1990, research, develop and implement generating 29 percent of our a major demand side manage-customer demands Recent ment program of peak-chpping.

improvements. some of which are load-shifting and conservation.

Emphasis in 1991 wdl be on still under way, are expected b

de the hves of these investigating customer loads' older units identifying how various demand-side strategies might impact those A number of customer-service in-loads and evaluating the cost:> c' novations were made dunng 1990.

implementing programs.

. An automated trouble-Call Finauy, the Power Supply Study system using our mainframe points up the need for reducing computer was developed to sort nuclear operating costs to pre-trouble calls electronically. It has serve the nuclear function for improved service restoration OPPD High expenditures were significantly and also reduced the necessary the past three years to number of people required dunng further enhance safety and to storm restoration S

YY YlCE PRESIDENTS

. A new customer service office was opened in South Omaha.

3 This full service business office r

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provides customers with yet g

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ient location in which to conduct business with their electric utility, d

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OPPD has long been committed to providing anergy information services to its customers, and O

19901eatured the initiation of an endon c. Pope woonam c.. tone, wornam o ocemyer innovative program of tree-planting f etw vo Pres *"I ~

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and tree-education. In its first year,

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the program helped fund the proper planting of 18,000 trees in OPPD's service area.

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Great progress was made in 1990 in OPPD's overall effort to develop Mr(

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p i and make use of the full potential M

fi of a rapidly diversifying work force ya' g.,,t and to position the utihty for the changin0 demographics of the future work force. With respect to minorities, the company has nearly achieved its target of making its Kenneth S. Tietdong Dayton D. WIItke, Ph o.

work force a mirror of the customer We P'es*"I Vo Prewcor population it serves. This is being accomplished through aggres-sively searching both external and internal talent pools for qualified women and minorities for positions at alllevels of the organization.

Building on the planning and the accomplishments of 1990 is the 9

major challenge for this utility in 1991. We remain committed to meeting that challenge and all others as we position this utikty for future success in providing our customers with a plentiful supply of reliable, affordable electricity, just as we always have done.

Ael D7..

((daen Fred M. Petersen President 9

n UIi$ RATIONS REVIEW i

Peopt 10 d!!'erent measures to J

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as' - Te success of a ut:hty over

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's f.nanpa! stabaty is the

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service o enwonmental respon.

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sweness auhe pnmary measure A

D of a utih s uccess. At OPPD, I

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l aH of these areas are gwen l, I { g( ' ( f,* 3) i"'

j; high pnonty.

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Efforts afe cntoing to stoke the fI?.,R**~

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rehab+ty. service. and all aspects g

of our operations to meet the

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as ethciently and effectively as

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l possible. Again in 1990 there was

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Employees intensified tnea efforts to contain and reduce costs in 1990, and their response helped

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produce o'amatic results.

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Of particular signihcance was the renegotiated pnce agreement with

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f act that total operating costs in its coal suppher. This renegotiation 0-1990 were about $17 million lower WM save more than $2.7 milhon than initially budgeted thanks over the next three years, g

largely to cost. control efforts and

. OPPD took advantaae of a g 9>.

increased efhciencies Many of f avorable spot coal market in

.i these efforts occurred at power 1990. purchasing 1.5 milhon tons

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generating plants or in areas of coat That strategy saved associated with plant operations approximately $60d.000 over the cost of comparable long term coal e *'$

For example.

supoly contracts

. Fort Cathoun Stabon finisheo 1990 $22 mdhon under buoget.

The f avorable coal prices achieved Whde safety remains the top by OPPD became even more

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g pnority at Fort Calnoun Station.

important in hght of the utihty's

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a Cost Effectmeness Review record coal consumption last year.

4({*'"q Program is expected to result To meet record customer demand.

in conhnued opwating cost oower stations at North Omaha reductions in the coming years.

anei Nebraska City used nearly irr mempew:. m cm em 3 5 muhon tons of coalin 1990.

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. In August. OPPD began paying-e enc own r w ce esa s r"-

83.000 tons more than the prew about 10 percent less for two tw e, 3

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, J,e,n m y...nrw c4 cue, mcord set in GS8 A mif.si thirds of its coal as the rosu!! of a 10 l

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Economy isn't worth much if it isn't

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that reason, OPPD worked to I

l achieve increased economy in i

1990 through true efficiency

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improvements, not by sacnhcing a r y$.

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rehabihty or other important 4

services Those ethciency im-

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i provements produced results.

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l In 1990, overall system availabihty t

j increased to 99 9803 percent.

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i compared to 99.9720 percent W-'t l

in 1989. Signihcantly, the average 4

length of outages dechned from di 107.41 minutes in 1989 to just ig 87.56 minutes in 1990.

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in both cases, increased efhciency A

3 and ongoing system improve-ments deserve considerable i

credit. Much of the credit, how-ever, must go to the hne crews dispatchers and other excellent personnel responsible for keeping the transmission and distnbution 4

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system in good operating conds h W W 9 2,) f

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tion. Their around-the clock Rt d} W ; W O J' e '.,g*

4-commitment to customer service was again a major factor in neweg am ma nwng me t esnswn awasswn nsrom enrogoat tne s w smaw mae OPPD's ability to dehver elcctncity

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wnere it's needed at the time it's needed.

16 miles, of underground residen-additional requirements of new A considerable amount of effort tial service cable in several areas.

and existing customers quickly was also invested in preventing The cable was replaced using a and othciently. Through the power outages whenever possible, recently developed tunnelhng direct efforts of these personnel, Toward that end, an Outage Study method that minimizes surface new service was provided to Project Team developed a com-d:stuptions and, therefore, 2.204 single-family dwelkngs, puter program to improve analysis customer inconvenience 1.064 apartments and 500 e data commercial customers, of outag's. more. Based on that There was, of course, a consider-analysi effective action can able amount of new kne and A new substation was also be taken to ehminate recurring electnc service problems.

equipment instal:ation work done completed near Gretna, a small l

in 1990 to meet the diverse needs community west of Omaha, to Ar. aggressive program of created by continued growth help meet the growing needs in transmission kne reconstruction throughout the OPPD service that area, and construction began continued in 1990 to increase terntory. OPPD Customer Services on a substation needed to meet the capacdy and rehabihty of the representatives and Electnc the future power demands of the transmission system OPPD also Operations personnel met the downtown Omaha area j

replaced 83,000 feet, or almost l

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11

n bPERATIONS REVIEW

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Power Production y

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OPPD's power generating stations I

compiled an impressive kst of o '. K

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accomphshments dunng the year,

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,7 helping OPPD to meet record k

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1. ~cra,e we tw >er t r ww.

yeat wo:keC Wi!W a (Oct 1:me aXce t n

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Significantly, the plant aff worth of repair and modification can duphcate a wide vanety of achieveo those records without a work began on Units 4 and 5 at actual and hypothetical plant i

single lost time accident. In fact.

North Omaha Station. That work operating conditions, providing on January 31.1991, the person-willimprove the rehabikty of those valuabie hands on training for nel at Nebraska City Dation units and help ensure that the plant personnel. This unit is completed five years of c,neration plant is available to meet customer considmed a major step in without a lost time accident - an needs as. hey inci. se in the OPPD's efforts to achieve excel-outstanding achievement in thd coming year '

lence in all areas of operation at industnal work environment.

Fort Calhoun Station.

The same type of high quahty Fort Calhoun Station was comple-Customer Convenience employees staff other OPPD tion and installation of a plant' Efforts to provide a cont,nued power generating f acihties, and specific control room simulator, hiah level of customer service and they are supporteo by efforts to This complex computer-dnven convenience continued in 1990, i

maintain and improve th)se simulator is a rephca of the plant s join:ng economy and reliabihty as l

facihties. More than $20 million actual control room. Programmers top OPPD pnonties.

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M A branch customer service office l

was opened in South Omaha -

the third satellite office to open in the city - and the North Customer Services Office was relocated to a more easily accessible location.

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Ongoing efforts to improve g

rural office facihties progressed 3

with a remodeling project at the A

4 Tecumseh office and continued L

planning for a new service center at Syracuse.

. %.a OPPD expanded the Level Payment Program so that small-F O

commercial customers could join N;

residential customers in using this convenient method of paying j

electric service bills. More than 1

m 1,000 small commercial customers joined this program. An additional J

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13.400 residential customers gs' % ' '

<f%6 signed up for the Level Payment Program in 1990, bnnging the total s

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Y, number of residential customers g 1,.

d on the plan to more than 74.600 at year-end i

The Energy Advisor telephone "f

information service a!so provided 4

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free information about a variety of

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_y energy related topics to nearly 6.200 customers who called from throughout the OPPD service ron cama, s:at:on e%ees wa oc a veuamm vo w s p em a m otv n n s n.,,

terntory.

seedsed rewewy; nexwn e oaay 13

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\\)PERATIONS REV EW l

Community Service corporate citizen and neighbor.

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OPPD has always worked hard to From buming low sulfur coal to m,_,_.

be a good corporate citizen in its developing wildhfe nabitats on its j

1 eastern Nebraska service area, properties. OPPD has always

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and that effort received even been committed to doing business g

greater attention in 1990.

in an environmentally responsible f ashion. That comm:trrent con-More than $77,000 was collected tinued in 1990 and was backed j

for OPPD's Energy Assistance with action.

Program established to help needy famihes pay emergency in addition to its tree planting and energy-related expenses. OPPD tree-education program. OPPD l

raises money for the program supported and took part in 1990 through customer contributions Earth Day activities. OPPD also g

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and through the sale of advertising participated in an ongoing Electnc I

in its monthly customer newsletter.

Power Research Institute study gg 4

The program is administered by into the possible health effects of

~~4 the Heartland Chapter of the electnc and magnetic fields ~

h 'ho',W "*"S od **f"d m "'e oaorf va ageet sus program anen w American Red Cross.

""# 0"#U """'"#' '"

Future Plannin9 maoam ncrease tv enectaeness OPPD employees and retirees While taking care of day to day l

continued their participation in a business Was. of course, essential.

Planning also proceeded for variety of civic activities, including OPPD continued to plan for future development of a demand side r

the United Way/ CHAD Drive and customer needs. For example.

management program. Demand-the annual Nebraska Food Bank research into customer energy-side management involves Cans Festival. That latter effort use pattoms continued with changing customer consumption l

collected more than 2.500 cans of installation of 330 recording patterns in such a manner that i

food for the Nebraska Food Bank devices at residences and large future power plant construction and the people it serves, general service customers. These can be delayed, benefitting the recorders collect information about customer and the utility. One Environmental responsibility is how and when OPPD customers effort related to demand-side l

an important part of being a good use electricity.

management, the Energy Management Credit Program, C

continued successfully in 1990.

f The program provides electric service bill credits to residential 3308 NL M customers for low levels of elec-tricity consumption during the hot summer months. In 1990, more than 71,000 customers received o

credits totalling $228,000.

Economy. Reliability. Environ-w; -

mental responsiveness. These are just some of the standards by M

j which the success of a utihty is measured. By these and all other

/

^

'p.

l.

measurements.1990 was a A

successful year for OPPD and its I

customers, and 1991 promises a I

continuatior' of that success.

.~.

Aton:o Guhford W and John Gatus re viwd OPPDs Energy Partner Awd for theirpa?apa!On in i

Omaha s Mad Dads The orpamzation p'ovdes positive role models tot v' ban youth sponsors edJCa!CW and Inh".!CabOna! (Jnct;On$. and patrols area neightO' hoods 14

INDEPENDENT AUDITORS' FINANCING REPORT in December 1946. Omaha Pubhc Ptwer Distnct Omaha Pubhc Power D stnet funded the purchase of The Nebraska Power Dsn-We have audited the accompanying balance sheets of pany with a bank loan for $42.000.000 Remnue tne Omaha Pubhc Power Distnet as of December 31, bonds were issued in February 1947 to pay off this 1990 and 1989 and the related statements of net loan. Since then, $1,587,930.000 of addttronal earnings and accumu ated eamngs reinvested in the revenue bonds have been sold.

busness and of cash hows, for each of the three yeats The Distnct retired $17,570.000 of revenue bonds in the penod ended December 31,1990 These finan-in 1990 These rehrements bnng the total of bonds cia! Statements are the responsib:hty of the Distnct's h 1990 to management Our responsibihty is to expmss an opin-redeemed and refunded throug' ding bonds of

$718.665,000, leaving outstan on on these financ:a! statements based on our aud:ts.

$911,265,000 at December 31,1990 Dunng 1990, We conducted our audits in accordance with general!y 554.263,000 of interest expense was charged to axepted auditng stancards Those standards require operations on outstanding bonds, representing an tha' we pian and perform the audit to obtain reeson-average annual rate of 5 9%

able assurance about whether the finanDal state-Dunng the year, the Distnct increased the autho-ments are free of matenal misstatement An audit r! zed level of Tax Exempt Commercial Paper to includes examining on a test basis, evidence sup-

$150.000,000. Outstanding commercial paper at porting the amounts and d:sclosures in the f;nancial December 31,1990, was $100,000,000. Dunng statements An audit also includes assessing the 1990, $5.846,000 of interest expense was charged accounting pnnciples used and signihcant estimates to operations on outstanding commercial paper, made by management, as well as evaluating the over-representing an average annual rate of 5.8% The all f,nancial statement presentaton We beheve that outstanding subordinated obhgation at December 31 our aAts provide a reasonable basis for our opinion 1990, totalled $4.677,000. Dunng 1993, $422,000 in om op nom such hnanaal dabmenM prewnt fal@

of interest expense was charged to operations in aH ma nal spe hnanaa! poMon of N on the outstanding subordinated obhg'of 9 0%

ation, Omaha Pubhc Power Distnct as of December 31, representing an average annual rate 1990 and 1989, and the results of its operations and Gross Electric Plant amounted to $1.753,802,000 its cash flows for each of the three years in the penod and Nuclear Fuel (at amortized cost) amounted to ended December 31,1990 in conformity w:th gener-

$143,744,000 at December 31,1990. Accumulated ally accepted accounting pnnciples earnings reinvested in the business increased

{M'

$40,337,000 to a total of $600A86,000 dunng 1990 while total assets increased $10.033.000 to a total of

$1,776,658.000.

DELOlTTE & TOUCHE Omaha. Nebraska February 20,1991 15

_ - -. ~ -

OMAHA PUBLIC POWERDISTRICT BALANCE SHEETS, DECEMBER 31,1990 AND 1989 ASSETS NOTES 1990 1989_.

J (thousands)

UTILITY PLANT - At cost:

2,9 Electric plant (includes construction work in progress j

of $82.986.000 and $B3.604.000, respectively).

$1,753,802

$1,668,403 Less accumulatod depreciation.

__560,145

___.509.230 Ek'etric plant - not.

1,193,657 1.159,173 Nuclear fuel - at amortized cost.

143 744 156.354 t

Utilit/ plant - net.

1 337,401

_1.315.527 SPECIAL PURPOSE FUNDS (pnmarily at amortized cost):

3,4 Construction fund...,,,

79,970 94.771 Electric system revenue bond fund (net of current portion).

52.815 53.292 Debt service fund.

7.391 7,562 Segregated fund (see contra) 4,809 4.537 Segregated fund - collaterakzed securities.

11,145 Decommissioning funds.......,.

39,256 32,210 Defoned compensation fund..

_,,24,270 20.540 Total special purpose funds...

_ 219,656

_ 212,912

- CURRENT ASSETS:

Cash and cash equivalents 7,916 23,386 Revenue fund - U.S. Government securities (at amortized cost)..

4 22,182 2.994 Electric system revenue bond fund - current portion.....

34,474 34.109 Accounts receivable - net.

23,868 37,540 Unbilled revenues...

16,571 15.556 Fossil fuels - at average cost.

7,959 8.569 Materials and supplies - at average cost, 35,868 32.432 Deferred proouction costs.

(4,318) 15.358 Other 4,953_

4,8_qJ Total current assets 149,47,3 174.745-DEFERRED CHARGES 5

70d28

_ _ 63.441 TOTAL.

$1.3776,658

$1.766,625 See notes to financialstatements.

L l

16

l l

LIABILITIES NOTES _

_1990__

,_1989 (thousands)

LONG TERM DEBT:

2 EIxtnc system revenue bonds - not of current portion:

Serial bonds,3%*. to 7.4*. due annually from 1991 to 2010

$ 197,675 5 217,215 Term bonds,5%*6 to 7%'b due at vanous dates from 1995 to 2017 694,050 694,050 Total electric system revenue bonds.

891,725 911,265 Electric revenue notes - commercial paper series.

6 100,000 100.000 Subordinated obkgation.

4,616 4.677 Total,

996,341 1.015.942 Less unamortized discounts

_ 10_,1_94

_ 10 89_0 Long-term debt - net 986,147 1.005,052 [

COMMITMENTS AND CONTINGENT LIABILITIES 9,11 LIABILITIES PAYABLE FROM SEGREGATED FUND (see contra) 3

_ 4,809

_ 4_,537 CilRRENT LIABILITIES:

Current portion of electric system revenue bonds.

2 19,540 17,570 Current portion of subordinated obkgation.

61 56 Accounts payable.

38,710 48,062 Accrued payments in lieu of taxes.

13.448 12.909 Accrued ;nterest.

24,612 25.653 Other

_.15,00_1

_ 25.511 Total current habihties.

_ 111,372

_ 129.761, OTHER LIABILITIES:

Transportation settioment.

10 6.5! 7 Decommissioning costs.

39,.!56 32.210 Deferred compensation.

8 24,270 20,540 Other

_ 10,318 7.859 Total otner habikties.

73,844 67,126 ACCUMULATED EARNINGS REINVESTED IN THE 53USINFSS

_ 600,486

_ 560,149 TOTAL S1,776,658

$1,766.625 17

STATEhlENTS OF NET EARNINGS AND ACCUMULATED EARNINGS REINVESTEDIN THEBUSINESS

-FOR THE THREE YEARS ENDED DECEhiBER 31,1990 1990 1989 j988 (thousands)

OPERATING REVENUES...

$386,648

$375.643

$350.837 OPERATING EXPENSES:

Operation:

Fuel.

64,309 61,520 61,781 Other production..

80,821 78,120 59.915

-Transmission,......

2,232 2.438 2.080 Distribution...,.......,.

12,963 12,308 11,214 Custome* accounts..,..

9.396 9.746 9.222 Customer service and information.......

3,737 3,397 3.356

. Administrative and general..

28,726 32.245 26.168 Mair'tenance...

39,225 48.430 40.967

-Total operation and maintenance........

241,409 246.204 214,703

. Depreciation.......

47,514 44.498 43.399 Decommissioning........,

4,175 4.382 4.097 Payments in lieu of taxes........

14,370 13.817 12.358 Total operating expenses

_307,468

,308.901 274.557 OPERATING INCOME 79,180 66,742 76.280 OTHER INCOME CREDITS (CHARGES):

interest income.

19,790 16.560 13,619 Anowance for funds used during construction 3.687 5,780 4,743 Allowance for funds used for nuclear fuel..

3,313 4.467 4.579 Amortization of cancelled project costs.

(1,295)

(5,181)

Other - net (1,888)

(1,491)

_ J 38)

L

.-Total other income credi1s - net.

24,902 24,021 17,022 EARNINGS BEFORE INTEREST EXPENSE 104,082 90,763 93,302

(

INTEREST EXPENSE 63,745 61,179 56.373 N ET_ E A R N I N G S.....................,..

50,337 29,584 36.929

' ACCUMULATED EARE.GS RE!NVESTED IN THE BUSINESS, BEGINNING -

OF THE YEAR.

560,149 530.565 493.636 ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS, END OF THE YEAR

$600d86

$560,149

$530.565 l

See notes to financial statomonts.

18

l STATEMENTS OFCASH FLOWS FOR THE THREE YEARS ENDED DECEMBER 31,1990 l

l 1990 1989 1988 (thousands) i l

CASH FLOWS FROti OPERATING ACTIVITIES:

i Operating income.

S 79,180 5 66.742 5 76.280 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation 47,514 44 498 43 399 l

Amortization of nuclear fuel 17,798 24.824 17.960 l

Decrease in other habthties.

(4,057)

(7.690)

(6.876)

Other.

(10,118)

(11.327) 4.896 Changes in current assets and habihties-Revenue fund - U S. Government securities (19.188) 27.877 21.720 Accounts receivable.

13.672 (5.757) 983 Unbilled revenues (1,015)

(2.753)

(874)

Materials and suppi,es.

(3,436)

(5.055)

(3.873) l Fossil fuels.

610 (433) 1.491 Accounts payable.

(0,352)

(6.434) 23 817 Accrued taxes 539 1.455 1.055 Other.

9,129 20,479 J11.624)

Not cash provided from operating activities.

121,276

_146,426 168.354 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES:

Proceeds from long term borrowings.

129.020 Principal reduction of long term debt.

(17,626)

(16.811)

(16.057)

Interest paid on long-term debt (62,548)

(55.191)

(54.254)

Acquisition and construction of capital assets.

(78,310)

(101.856)

(97.883) l Acquisition of nuclear fuel

. (1,87_6)

(11 505)

.(10.240)

Net cash used for capital and related financing activities (160,360)

.J56,343)

,(178.43s CASH FLOWS FROM INVESTING ACTIVITIES:

Purchase of special purpose funda -

investment securities (283,719)

(256.554)

(65.200)

Sale and maturities of special purpose funds - investment secunties 288.023 171,934 65.335 Net change in electric system revenue bond fund - current.

(365)

(4.323)

(792)

Interest on investments.

19,675 15,572 13.796 l

Net cash provided from (used for) investing l

activities

_23,614

.(73.3_71 )

13,139 INCREASE (DECREASE)IN CASH AND C ASH EOUlVALENTS............

(15,470) 16,712 3.059 l

CASH AND CASH EQUIVALENTS, BEGINNING OF THE YEAR........

23,386

_ 6 67_4 3.615 s

CASH AND CASH EQUIVALENTS, END OF THE YEAR.........

S 7.,916 5 23.386 S 6.674 See notes to hnancial statements.

19

- NOTESTOFINANCIAL STATEMENTS FOR THE TilREE YEARS ENDED DECEMBER 31,1990 1

1.

SUMMARY

OF SIGNIFICANT Safety Enhancement Program (SEP) + Fort Calhoun ACCOUNTING POLICIES Station - Certain costs ansing from the Distnct's SEP at the Fort Calhoun Station have been deterred and ate Orgtntzation and Business -The Omaha Public Power Distret-being amortized over ten years through 1999.

a pohtca'sut>dmslon of the State of Nebraska,is a DUbtic Vtility engaged solely in the generation, transmission, and distnbution Deterred Cancelled Project Costs - Fort Calhoun of electre powe and energy and other related activities. The Stathn - Unit No. 2 - Costs arising from the turmina.

Board of Directors is authorized to estabbsh rates. The Distnct is tion of contracts relating to Fort Calhoun Station - Unit t

not hable for Federa: and state income or ad valorem taxes on No 2 were amort:?ed over ten years through 1989.

property: however, payments in heu of taxes are made to vanous local govemments.

Nuclear Fuel Disposal Costs - Fermanent disposal of spent nuclear fuelis the reaoonsibittty of the Federal Government Basis of Accounting - The accounting records of the District under an agreement entered into with the United States Depart-are maintained generally in accordance with the Uniform System ment of Energy (DOE) Untier the agreement, the Distnct is of Accounts presenbed by the Federal Energy Regulatory subject to a one mill per not kilowatt hour fee on all nuclear Commission.

energy generation, which is paid quarterly to the DOE. The spent nuclear fuel disposal costs are included m the Distnct's Accounting for Revenues - Meters aro read and bills are nuclear fuel amortaation and are collected from customers as rendered on a cycle basis. Revenues eamed after meters are part of fueicosts.

read are estimated and accrued as unSiled revenues / the end of each accounting period.

Nuclear Decommissioning-The Distnct s Board of Directors has approved the collection of nuclear decommiss:oning costs Utility Plant - The costs of property additions, replacementr. of based upon the Nuclear Regulatory Commission's (f;RC's) uruts of property, and betterments are charged to electnc plant.

extemal minimum fundmg requirements. The NRC's reouire-Maintenance and replacements of minor items are charged to ments are baned on a generic estimate of the cost to decommis-operating expenses. Costs of depreciable units of electric plant sion the radioact*e portions of a rmclear unit based on the size retwed are ehmmated from electoc plant accounts by charges' and type of reactor. The estimate accepted for the decommis-less salvage plus removal expenses, to the accumulated sioning of the Fort Calhoun Station - Unit No.1, when its depreciation account, operating heense is scheduled to expire in 2008, is $106,500,000 An allowance for funds used, approximating the District's current -

i".1990 dollars. The Distnct is funding these costs in accordance cost of financmg electnc plant construction and the purchase of with NRC requirements and will penodically review and adjust,if nuclear fuel. is capitabzod as a component of the cost of the mcessary, me Wmg W for changes in the estimated costs ubhty plant. This allowance was computed at 5.7% 61% and f decommissioning the plant.

5.7% for both construction work in progress and nuclear fuel for Statements of Cash Flows - The District adopted Governmen.

- the years ended in 1990,1989 and 1988, respectively-tal Accounting Standards Board Statement No. 9,

• Reporting.

. D3preciation and Amortization - Depreciation is computed on Cash Flows of Proprietary and Nonexpendable Trust Funds and the straight kne bas:s at rates based on the estimated useful Govemmental Entibes That Use Proprietary Fund Accounting',in fives of the various classes of property. Depreciation expense 1990, and has restated its 1989 and 1980 hnancial statements to has averaged approximately 3.7% 3.6% and 3 5% of depre.

include statements of cash flows for those years consistent with ciable property for the years ended December 31,1990 cA9 the current year's prsentation. For purpose: of the Statements

- and 1988, respectively, of Cash Flows, the Distnct considers highly hquid investments of the Revenue hmd purchased with a matunty of three months of Amortization of nuclear fuelis based upon the cost thereof, less to be cash equ6valents, which is pro-ret 6a by fuel assembly in accordance with the

- thermal energy that each anembly produces.

2, LONG-TERM DEBT Dsferred Production Costs - Deferred production costs t he Distnct utilizes proceeds of debt issues primanly in hnancing account for excess costs or collections subject to recovery under

. Its constructon program.

the Fuel and Production Cost Adjustment clause of the Distnct's rate schedules.

Electric System Revenue Bonds - Maturities of Electnc System Revenue Bonds outstandmg at December 31,199u.1 se-Deferred Charges - Certain costs and charges are deferred and 1991 through 1995, are as follows (in thousands);

amortized over the penod that ratepayers are expected to beneht. - The most signihcant items are:

1991.

.,$ 19.540 1992.

.. $20.455 Deferred Financing Costs - Debt discount and 1993.

..$21.460 expense and amortaable charges relat ng to refunded 1994

.. $22.600 debt are amortized ratatty over the hves of the related 1995.

..$23,765 issues to which they pertain.

20

==

The Distncts bond indentures provide for certa.n restnctions. the investments held to fund the estimated cost of decommissioning most signibcant of which are:

Fnri Calhoun Station Unit No 1 when its operating hcense is scheduled to espite in 2008 The new tunds were estabhshcd to Additional bonds may not be issued unless estimat" comply with the NRC s minimum funding requirements (see not receipts tas cohned) for each future year will equal Nate 1) The ba!ances of the funds at December 31 were as or exceed 1.4 times the debt service on au bonds gggwy outstanding including the additional bonds being issued or to be issued in the case of a power plant (as dehned) 1990 1989 being financed in increments.

(thousands)

Decommissioning Trust 1990 Plan

$33147 $-

An amount at least equ,valert to 12 % of gross Segregated fund decommission:ng 6.109 operatnp revenue (as dehned) must be spent annuauy Revenue fund - decommissioning p 21Q for matntenance.,ep!acements. or addibons to the Total Decommissioning funds

$39 P56 $32210 electnc System, or if not so spent is to be placed in a special fund to be used for such purposes or for The Deferred Compensation Fund rs valued at market value and rebrements of ongrnal bonds (as dehned)in advance of ts used to account for employee and Distnct contobutions and matunty.

related eamings pursuant to tne Distnct s Suppiemontal Retae-in any three-year penod at least 7% of general business income (as dehned) must be spent for

4. DEPOSITS AND INVESTMENTS replacements enewMs. or add:tions to the electnc system Any dehciency is to be spent within two years The Distnct s bank accounts and investmunts included in the thereafter for such purposes or if not so spent is to be Constru: Don Fund Electoc System Revenue Bond Fund. Debt used fs bond retaements in advance of matunty.

Service Fund, Segregated Funds. Decommissioning Funds and the Revnnue Fund are held by the Distnct s agents in the At December 31.1990 and 1989. $57.B ) 000 and $58,470.000.

Distnc's name in accordance with the Ditt ict s bond covenants respecovely. of 7 0% - 9 35% Senes 1985A Electnc System and State statutes. The investments, carned at a cost of Revenue Bonds remained outstanding Such bonds aie funded

$259 958.000 and $252.861.000 at December 31,1990 and by Govemment secunbes that were deposited by the Distnct in 1989 respectively, are composed par.ianly of secuntms of U S an irrevocable trust in 1986 The bonds and the Govemment Govemment and related agencies and repurchase agrer.e secunties were removed from the Distnct s balance sheet at that (coliaterakzed by Government secunties) The aggregate mafkut time' value of the Distnct s investments at December 31,1990 and 1989 is $265 847.000 ano $255 326.000, respectively Subordinated Obligation - The subo'danated obhgation is payabie in annualinstaumente of $481815 includ.ng interest,

5. DEFERRED CH ARGES through 2u14 The composition of detened charges a' December 31,1990 and

3. SPECIAL PURPOSE FUNDS 1989 was as tonows-Special purpose funds of the Distnct are as tonows 1990 1989 I

The Construction Fund is to be used for cap (ta! imo.ovements.

Onouseds)

/

add;tions and betterments to and extensions of tre DistnrJs Deterred $nancing costs

$31.741 $33.284 electnc system. or for payment nf pnncipal and interest on Sa'ety Enhancement Program. Fort Ca!houn Staton 20.526 t 5,858 Electnc System Revenue Bonds _

Other 17 661 14 289 The Electn: qstem Revenue Bond Fund and Debt Service Total

$70128 $63 441 Fund are hed by Trusiees for the retaement of twm and sena!

- - -~~

bonds and tne payment of the related interest.

6. ELECTRIC REVENUE NOTES -

The Segregated Fund represents customer deposits and refundable advances The Distnct has authonzed the istuance of taoenempt com-mercial paper o' ur 10 $ an n%000 which is supported by a The Segregated Fund - Cohatera42ed Secunbes represents credit agreemmt wNch expires in June 1993 At December 31 investments in short-term secunt:es (generauy. repurchase 1990 and 1989 the Distnct had $100.000.000 of commercial agreements co!!aterahzed by Gnvemment secunties) as permit-The average borrowmg ratus ted by State statute pacer issued and outstanding'989 wem 5 9t at December 31.1990 and I and61%

re spect+vely.

Decommissioning Funds - in 1990, the Distnct estabhshed new funds. meiuding an externai trust fund. to account for the l

21

NOTES TO FINANCIAL STATEMENTS FOR THE THREE YEARS ENDED DECEMBER 31,1990 (CONTINUED)

7. PENSION PLAN The pension benefit obhgation, which is the actuana! present value of cred:ted projected benehts. is a standardaed disclosure Substantially au employees of the Distnct are coveted by a measure of the present value of pension benefits. adjusted to dehned beneht plan which provides retirement and death include the effect of projected salary increases estimated to be benehtL Employees are ehg bie for coverage at the time of payable in the future as a reso!! of employee service to date, employment with a vesting penod of hvo yea's. GeneraNy, the Based upon the most recent actuaria! valuation on January 1 plan provides for benehts at age 65 with reduced benehts far 1990, the pension beneht obhgations at December 31,1990 and early retirements Total nayron for all employees and covered 3939 were as tonows:

payroll for the year ending December 31,1990 were

$99.622,000 and $84.755.000, respec%ely. Emplovees 12E 22 19 contobute 4 0% of their base pay to th(,)lan, The Distnet is (thousands) obkgated to contnbute the batance of the funds needed on an Rettrees and beneScianes actuariaDy determined basis. The plan s funded s.takis and receiving benetts

$ 98.216 $ 02,866 amounts recogneed in me Distoct s balance sheets at Terminated vested employees 947 895 December 31,1990 and 1989 were as follows:

Accumulated current employee contnbut ons 47.679 42,180 1990 MB9 District hnanced vested benehts 40.424 41.122 (thousands)

Distoc1 financed nonvested benehts 8296 7845 Plan cssets at fair value

$247.341 $244 911 Total pension benefit obhgations

$195.562 $ 184.908 Projected beneht obhgaborn Actuanal present value Contnbution requirements are actuariauy determined, using the of accumulated.

Attained A0e (level percent of pay) Method The froten initial Vested benehts 142.46a 146.811 habihty is amortaed over a 30-year penod. Assumption changes olonvested benehts 6.311 5.387 and plan amendments are amortaed over a 10-year penod. The Effect of protected salary increases 46.788 46 359 actuanat assumptions used to compute the actuanally deter-Excess of olan assets over mined contobution requirements were the same as those used to projected beneht ochgation 51,779 46.354 cumpute the PBO. except a 9.0% discount rate was used. Plan Unreccyneed transitional asset (10.330)

(11,269) contnbutions by Distoct employees for the years ended Decem-Unrecognized net gain (48,155)

(42,247) ber 31,1990 and 1989 were $3.390.205 and $3.864.531, Unrecogneed poor service cost 4 370 4 706 respect!vely. The Distnct has not contnbuted to the plan dunng Un!nnded accrued pension cost

$ (2,336) $ (2 456) the last three years All assumptions and methods used for the January 1,1990 valuation are the same as the January 1,1989 On January 1.19F a Distuct merged the Dependent Survivor valuabon.

Benef;t Plan into t Retirement Plan increasing the projected benett obhgation (PBO) by $1,013.000 The PBO was deler.

Three year histoncal trend information as o' December 31 is as f0ho*S '

mined using an assumed discount rate of 8.5% for 1990 and 1989. Plan assets are pnmanly hsted stocks. corporate bonds.

mAm wr, m and U.S, Govemment secunties There are no D:3tnct secunties Anwe IWse co81 E ms of Aeuan Coe 4

$5 g C ;Q dj included in the pian assets The expected long term rate of g$,

M(Q dj

/

retum on assets is 7.0% An average annua! rate of compensa-31 3 cg2,1, ten 3cg41 Jcn Jgom l

tien increase of 6.0% was a!so assu.1 ed. The unrecognized dwoo 0%Sa*

transitional asset is being amort 20d on a straight-kne basis over 19M

$208r51 sin su 1253 to n4

$71202 592 l

(

hfieen years by annual credis to not penodic pension cost.

m 24s 2 0 m4 oce m6 en us 791ce 70 m

247m t in su 126 5 51.779 847 5 ci i Net penodic pension cost for 1990,1989 and 1988 included the g

foHowing components.

the District s Comprehensive Annual Finwa Heport.

1990 1989 1988 (thousands)

8. SUPPLEMENTAL RETIREMEW, SAVINGS PLAN The Distoct has established a Deferred Compe 1sation Fund for ne st 1.8 13 9 1 9 aH ehg employees that aWows contnbutions by employees Actual retum on assets (9.987) (40.372) (19.802) that are partia!Iy matched by the Distnct beginning in 1988 By Net amorteation and de'e -

I9 688j 24.396 5.816 agreement, contnbutions and related eamings under the Plan Net pension expense (tw

$ it.133) $ 2.875 $ 830 remain the property of the Distnct until an employee leaves the Distnct. The Distnct's match ng share of contnbutions in 1990, 1989 and 1988 was $1,144.000. $1.043.000 and $960,000, respectively.

22

l

9. COMMITMENTS The amounts recovered are being rotunded to the. I.tnct s customers and participating ubhties over a three year penod.

The Distuct s Construction Budget providos for exoenditures o' Amounts related to the settlement have been recognized in the approumate!y $126.056.000 dunno 1991 and $38.000 000 accompanying financial statements, dunng later yea's, of which approumately $18.000.000 was under contract at December S t.1990 II, CONTINGENT LIABILITIES T he Distnct has coa! supply contracts which extend through Etiective August 22.1968. the Price Anderson Act was 1998 with minimum future payments of $52.530 000 The amendoc and extended to the year 2002 Under the provisions Distnct a!so has a coal transportation contract with minimu"'

of the Act, the Distoct and an other keensed nuclear power plant future payments of $90.698 000. These contracts aro subject operators could each be assessed for cla1ms in the event of a to pnce escalabon adjustments nuclear incident in amounts not to onceed a total of $63.000.000 Contracts with estimated tu'ure payments of $11,300.000 are per reactor por incident with a manmumot $10.000.000 por in et!ect for nuclear fuel. In addition, contracts with estima'ed inc' dent in any one calendar yea'. These amounts are subject future payments of $120,000.000 for the furnishing of uranium to adjustment every hve years in accordance with the Consumer PhCOI'dC" ennchment services extend to the year 2008.

nct 6 engaged in r u Obgation incidental to the

10. COAL TRANSPORTATION SETTLEMENT conduct of its business and, in the opinion of its General Counsel. the aggregate amounts recoverable from or to the Dunng 1988, the Board of Directors approved a sett!ement agreement on a ciatm that the District was overcharged for the Distnct. taking into account estimated amounts provided in the hnancial statements and insurance coverage. are not material transportation o' coal from 1982 through 1985 The agreement calls for payments in three successive years beginning in 1986 NET RECEIPTS AND DEBT SERVICE COVERAGE FOR THE RVE YEARS ENDED DECEMBER 31,1990 (UNAUDITED)

._1990, 1989_

_1988_

_ 1987

__1986_

(thousands)

Operating revenues

$386,648

$375,643

$350.837

$322,113

$311,498 Operation and maintenance expenses 241,409 246.204 214,703 193,173 188,099 Payments iri lieu of ' axes 14 3_70

_ 13.81_7

_12.358

_ 11,3_47

_ 10,968 Net operating re,'enues 130,869 115.622 123,776 117,593 112,431 investment income (1)

_ 5,28_6

_ _5,1_66

,4,819

_ 5,537

_ 5.851 Net receipts

$136,155 S120.788 S128,595

$123.130

$118,282 Total debt service (2)

$ 73,638

$ 69.320

$ 65,867 S 65,866

$ 66,188 Debt service coverage 1.84 1.74 1.95 1.86 1.78 (ip 1000f90 tjeffved frpfU th0 mestment or mOriny?, an the Uttt Gerrywe f yr " yd the newrp Ar rcu it 0? 9* Elon tru System omtWe comt F v nier r

the Dni!NCI1 DO'd iledenture'l(Rewiuf,tn ha 19 afM nesoNtton to t (M, Qi Total Deftl sMme IGt txtr' newiuhon No 19 and Nwtufen No DBA Donos 6 extued on a catenm wm tiaw omme io tre compuiation et het neC69r, if'tef*Mt furtMj ff9m ton) prow <.xfa +s nct irvlwies) ist Tota: Dett Sem.e 23

1990e1989 COMPARISONS millions of dollars OPERATING REVENUES Nrtent 386.6 0*ouss e Nnent c'

350.8 so'"menw, ciawcaten 1990 bw 1989 306.0 311,5 Aesdent at

$M2 464 39 4

$t 46 468 4i Genev Servre - Sman.

135774 35 1 134 621 07 227.0 233.3 Generai E.ervce - targe 7e 375 to a 72 4is e2 Gownment aM Marvapai 0 tWS 26 8417 16 i Othe. Doctoc U1M.es 3 624 10

$ 825 (34 4)

Accrued UnD*ed nevenues 1 015 03 2 753 (63 11 Tota: Ovet ic Aevenues

$3e1.137 98 6

$370 090 78 Miscellaneou. Aesenues 5 Sit 14 4.9s3 tt 3 l

1980 1982 1984 1986 1988 1990 Totai operaang Revenues tasetap 100 0

_s375 rg3_

_2 0, millions of kilowatt-hours 7,260

,623 KILOWATT-HOUR SALES 6,419 6.220 6,200 5,553 Classkanon Revdent,a!

2292.975 34 6 2 246 406 21 General Service - Small.

2175647 34 4 2.304 e56 (1 av General Sarvce - Large 1 831.035 27 6 1.713.362 60 j

Gaernment and Muconsi 78 514 12

'7.215 17

-)

Other Doctnc Ut* ties.

137.166 21 44 935 205 3 Acc-moo untatiod Knowatt-Hours

_ e tws

_oi 2993 37J_e >

1980 1982 1884 1986 1988 1990 beat Energy Sees

,,6 er 632

,j oo o_

,6 418 ne.

_;3 2 m>Ilions of dollars 241.4 214.7 '

OPERATION AND MAINTENANCE EXPENSES Otousando ITi.0 c:aisuanon Gewating Enense.

v io6.071 69 6 5 t 92 237 (12 61 145.7 135.6 pu,easco ano tniorenangee l

N*er.

3 754 16 118 629; i20 2 Transmissico and Distnbuten.

26 669 11 1 26 104 22 Customer Accounts G396 39 9 746 (3 61 Customer Service and informaton 3737 16 3 397 i^ 0 l

A1mirustratve at General 29 782 1? 3 33 349

_yp 7J TotN Oceraton ano

l 1986 1988 1990 Maintenance Extenw

, 521,1 409 100 0 1248 204 (t 9!

thousands of customers 249.1 AVER AGE NUMBER OF CUSTCMERS' 241.6 ciasukat,on Hemdentini 218 373 87 7 215 194 15 General Serne - Small 30.117 12 1 29 439 23 224.5 Generai sewe - uge,

90 75 cc o

-.. 480

_0 2

.- _46.1_

41 CXter Aarage custmm.

2.49 r.er

_.10 _0 o

.. _ u. s i s

.i.._c.

NYaha C #$

heb/c Yknh IVMh c(emMr 24

1 d

ELECTRIC SYSTEM REVENUE BONDS OUTSTANDING (in Thousands) as of December 31,1990 l

mmu ; ming e eu im su - m not 1W1 fi%f ; Nt'd t$2(

iWW 1W.4 1W:9 4M. W? JS.i 1M ISM

$iMtA Milif f 9 M Rn (

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t fl 1,NO 4 645 6 30 8:10 ' S A 2ta 5m 3 tir 5%.12M 6"

'tT 19 640 73 8/6 f-1741 h

1E Iw, 1 600,. 4. 2M 4

1992 44 1@

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'S' 1 000, 5 ?! 5 l'2 630 -- 95 i4-: )W 3W

-8 1.310 te 1 MM M 4M 73 E'7 1

190

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-4 TM0. 4 n 2ax 6 10 1 100 : W 6 n? 564 1,110

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- n9s du 1 t00 ! W ?4r. 6v 1.3r0. 5 9c ER 5

4M. F 30 2.1 50 to 2h 29 620

. 14 M 2M W 7m

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!. R 7 35 2.300 f, W 2W 31165

' 74 ??1 :

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$ *10 TV 2 460 - 6 t' W

- 35.690 73 412 2003 W G.3 W i 6t0 - F s

59u TV 2,015 6 10 2Wt 36 936 73 238 '

2004 -

W 9m C M W (#N 7W 2.180. 6 ?

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' 73 044 MS '

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it 13

. **i 9 &45 ' lV 2.710 _ %

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~ $5 981 s

. 2008,

8'4' 12.E0 _ W 10 />i N'

3010' %

J hx' 30 J90 54 16/3 1 - 2009 8%* 118'O

$ r ii M ' FV 4 tiie to.

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' 31 980 54 m !

Cto 4Y tL 490 5 9t ' It T ' FV. 4 540 ' ti.

4W

1) B60 :

64 Ora

[- 20til 6W 11360 i F '?95 ' 7V 1A)5 6r 4 Soc 3604 '

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j l l T12 9 m' 16 285. 5 P' 11 M

,N' 4 165 t e' iw 34 453

$4 325 L O) 4T 11.260. A %' Il P5 B*

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$$AT I ~. 2014 SV 142S$ $C 14 en 6'

4 SJO 6 C' e tr 44 W) 54 406 '

2015 4W; 113% fC $.M

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4W ' 21l/90 =

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+

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,0utstareng 1 000 9.000 MW

$ 900,_

t N in 14M..

111 n.. It0 000. '

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. tA306 w rit 9f f.261 13tS 900 -

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- hea it clo 25 flat e tw 20 W

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'N FC - 1 Of f to

• Te+ em!s

'NF iM hMi A h44j M bi$ 4)% Y./t!Yd (Y h Ibh #t f% k hh8:

1 l

e ELECTRIC STATISTICS-a 1990-1989-1988 1987 1986 1985 1964 1983 1982 1981 Total Utility P1 ant, including :

Nuclear Fue4 (at par end)

(m thousees o/ odesj,

. 1,897.546 1.824357 1J35,654 1346 734 1 561.960 1.495254 1.425.461 1.365 553 1 323.435 1788174 Bonded indebtedneea (at pa* eW) pri thousaws ol dMrs),

911.265 918 835 845.595 86L605 676 945 880.055 831 350 846.505 859. t 35 670325 Operat6ng Revenues -

tm thousaMs of d@vs)

Resdente

,6 152.464 146 458 137.105 125.095 121 541 111,975 116308 108.722 89 949 77.500 Gone<al Service - Smat.

135,774 134 Eli 117111 108.543 105.445 97.326 98,300 82 B80 72 495 60.99?,

General Service - Large.

78,375 72 416 61E37 57.561 57.776 55.360 55 444 46226 41193 36.345 Government ar4 Moncipa!

9.685 8 417 7 961 7J2tt 7 1,74 7,388 f.099 6.519 6370-4.516 Other Occtne Utih5es.

3.424 5.825 20,592 18.623 11,395 21451 25.129 22.958

' 21.A67 40.003 -

Aarued Untend Revenues -

1,015 2J53 874 211 (2.480) 5.500 q600) 1,900 (8005 1,000

. Miscellaneous.

5.511 4 953 4 957 4 =354 4 249 4,041 4 259 3 642 2D45 2,190 furaf,

386,648 375.643 350.837 322, t 13 31 L498 303 036 305.999 272.847 233,3 t 9 222 546 '

Operetton & Maintenance Espenses Char 9ed to Operations

. (in thousaws ot oolfss).

241,400 246 204 214103 193.173 168x99 172 438 177.001 156 050 145606 136,135 t

Peyments in Lieu of taxes (in thousaws o/ doders).

14,370 13.817 12.358 11.347 10 968 10.107 10.292 9.034 7.565 6 400 Not Operating Ravenues

. before Depreciation and Decommtcoloning

~

fin thousands of ders).

130,089 115M2 I?3 776 117.593 112 431 120 491 118 706 106 863 80,068 80,011 Not Earnings Fleinvested in the Bue6 ness (in thousaWJ o'do#4rsE 40,337-29 584 3FM9 3 t,020 28.01*

40 256 40.007 27,929 1880 6 323 Kilowatt-Hour Sales (tri ttxuands)

Residentet -

2.292.975 2248496 2 311 242 2.153 681 2,109 493 1,966.119 2 041305 2.115 696 1.898.606 1 824.285 General Servre - Smas,

2,275.647 2,304 856 2 246<353 2,130,425 2.073.447 t926936 - 1.940Jr 7 183a190 1.743 804' 1.69t815 General Servtce - Lar9e,

1.83t635 IJ13.362 1 655 600 LSE2.108 1 A35.819 1A97,052 1 A 71.372 1.384.986 1.334 043 1 411 304 Govemment and Munopal.

76,814 77,215 76,133 75 602 75 356 75,279 74.696 74 781 i4.388 74 444 Other Eiecinc Uttht.es..

137,166 44 935 961200 719 807 405,512 5293 59 691J92 590.987 501,704 1258 803 29,914 17,010 (13 682)

(56.1041 114 720 Accrued Untded tuowatMeurs 6,695.SA16J78 7.267.636 6.627.961 6.143 523 - P 109.865 6.220.022 5 996 640 5 552.545. 6260J41_

Totaf.

. 6,622,632 Number of Customers -

taverage per par)

,200 900 205 538 201 (W 197J50

_193.638 191.808 190 451 Resdentiatu 218.373 2 t 5.194 212.324 Genara) Seryx:e - Sman.

30.117 29.439 28 73t 28,109 27,623 2& 966 26.271 25 245 24 264 23.833.-

75 76 76 75 73

- 73 73 75 Generat Serwce - Large..

90 75

. 433 417 405 391 400 392 401 418 Govemment and Munic pal, 475 457

- Other Doctric Ut hhes,

8 4

5 6

7 6

7 7

6 10

- Tota!.

249.060 245,169 241,568 238 508 233.649 229.100 224.501 219.355 216.556. 214 387 -

I' Reeldential Statsstics fewrage)

IWVNCustomer.,

10.500 10,439 10 8b5 10 261 10 263

- 9.750

- 10.323 10.926 9.898 9 579 Douar Bemnue Custorrer.

696.16 MO $0 64513 595 97 59133

$55 26 588 46 561 47 468 95 406 93 Cents 14Vh.

6.65 6 52 5 93 5 81 5 76 5 70 5 70 5 14 4 74 4 25 i

Generating Capability fa pu eW!

r pn A#owa'ts) i 1,367,200 1P67500 t823 000 1 846 900 t.892.300 1 896,200 L994 500 t997.500 1,997.500 L992.100

. Systern Pealt Loads (in knowatts).

1,652,300 L597,000 1,600.400 1.532,700 14M600 1.331.200 1,383 900 L411500 1.330.200 L382.400 Net System Requirements ikdowa't-hC4rs e thousdMs)

Generated.

~.

. 7J21A10 7202 585 7356.360 7311379 7,322.999 6.850 069 6112372 6.302J25 ti 255 287 6 667,831 -

Purf#ased and Net tr'terchanged., (864,9311 (426,2991 (l.D'.C 747) (1237,120) (1.187.400) (915 087) (860 382) (4B3 M6) (8 9 27i)(1335.512) fur.

6,856,479 6 776 286 6305.613 6 274 659 6,135.590 5 934 c82 5 852 300 5.819.089 5,3870 6 5 332.319 1

(-) Dencte$ Nmjatum

. 26

^

i I

UPPD CORPORATE 0FRCERS FREDERCK J. UlRICH Chairmah of the Board FRAM J. WEAR Vice Chairman of the Board J0M K. GREEN Treasurer HCHAEL J. O'HARA, Ph.D.

Secretary FRED M. PETERSEN President Chief Executive Officer ELD 0N C. PAPE Executive Vice President -

J Chief Financial and Planning Officer j

Assistant Treasurer i

Assistant Secretary l

WKilAM C. JONES j

Senior Vice President 1

WKilAM D. DERMYER Vice President KENMTH S. FKlDMG Vce P'esident DAYTDN D. WITIKE, Ph.D.

Vce President CARTNl. CHAMPION Assistant Treasurer Assistant Secretary J0M W. MARCK Assistant Treasurer Assistant Secretary CAROL J. KELLEY Assistant Secretary ROBERT C. LEARCH Assistant Secretary MCHAll J. CZERWMSKI Assistant Treasurer CHARLES P. MORIARTY Assistant Treasurer RCHARD C. SHANEYFELT Assistant Treasurer 27

.... -. - =..

Onnha PnHC Power Distrkt Energy Mais 444 South 16th Street Mall Omaha, Nebraska 68102 2247:

A business managed, ptblidy owned electnc utility.

, An equal opportunity employer.

l

.k R

o

________m.___.________

__ _ _ _ __