ML18026A240

Allegheny Electric Cooperative,Inc 1990 Annual Rept. W/ 910617 Ltr

ML18026A240
Person / Time
Site:	Susquehanna
Issue date:	12/31/1990
From:	Keiser H ALLEGHENY ELECTRIC COOPERATIVE, INC.
To:	Murley T Office of Nuclear Reactor Regulation
References
PLA-3587, NUDOCS 9106240001
Download: ML18026A240 (47)

Text

ACCELERATED DISTRJBUTIO&!- '4 DEMONSTPWTION SYSTEM

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ACCESSION NBR:9106240001 'OC.DATE: 90/12/31 NOTARIZED: NO DOCKET FACIL:50-387 Susquehanna Steam Electric Station, Unit 1, Pennsylva 05000387 50-388 'Susquehanna Steam Electric Station, Unit, 2, Pennsylva 05000388 AUTH. NAME AUTHOR AFFILIATION KEISER,H.W. Allegheny Electric Cooperative, Inc.

RECIP.NAME RECIPIENT AFFILIATION R MURLEY,T.E. Office of Nuclear Reactor Regulation, Director (Post 870411

SUBJECT:

"Allegheny Electric Cooperative,Inc 1990 Annual Rept." W/

910617 ltr. D DISTRIBUTION CODE: M004D COPIES RECEIVED:LTR ENCL SIZE:

TITLE: 50.71(b) Annual Financial Report

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NOTES:LPDR 1 cy Transcripts. 05000387 LPDR 1 cy Transcripts. 05000388 A

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1 Pennsylvania Power & Light Company Two North Ninth Street~Allentown, PA 18101-1179 ~ 215/774-5151 Harold W. Keiser Senior Vice President-Nuclear 215/774-4194 JUN I 7 399)

Dr. Thomas E. Hurley Office of Nuclear Reactor Regulation Nuclear Regulatory Commission ,'.S.

Washington, DC 20555 SUSQUEHANNA STEAM ELECTRIC STATION ALLEGHENY ELECTRIC COOPERATION ANNUAL FINANCIAL REPORT PLA-3587 FILE R41-2A

Reference:

PLA-3577, H. W. Keiser to USNRC, "Annual Financial Report",

dated Hay 1, 1990

Dear Dr. Hurley:

In accordance with 10CFR50.71(b), enclosed is the 1990 Annual Report for Allegheny Electric Cooperative, Inc. Previously, the Allegheny Annual Financial Report including certified financial statements was sent to you since the enclosed 1990 Annual Report was unavailable.

Very truly yours, H. W. Keiser Enclosure cc: ~NRC3)ocument Control:Desk (original.)~

NRC Region I Hr. G. Scott Barber, NRC Sr. Resident Inspector Hr. J. R. Raleigh, NRC Project Manager I *

'DR 9l0624000i 90i23i PDR 'DOCK 05000387 (qO(

Table of Contents A Message. ~ ~ ~ ~ ~ ~ ~ 2 Allegheny Electnc Cooperative, Inc.........................................................4 P ower Supply.... ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~ ~~~~o 6 Project Review .. 10 Financial Review .

Member Revenue and Rates . 18 B oard of Directors .......~... ~ .~...~.... ..~...~........ .~...~..............

~ ~ ~ ..~.............................20 Doc',(et 8 P~-~ w Acccseloot wu c z+o~~i n ~~ r.A

A Message from President Jesse C. Tilton IIIand Chairman David F.. Turner Exploring alternatives Budget (OMB), who have for and turning challenges into years advocated phasing out the opportunities. This characterized Rural Electrification Allegheny Electric Cooperative, competitors. In addition, federal Administration (REA), publicly Inc., in 1990. Thanks to continued clean air legislation signed into questioned the financial stability aggressive problem solving, law in 1990 willforce private of rural electric cooperatives Allegheny experienced rate utilities dependent on coal-fired nationwide and the loan stability for the fourth straight generating plants to further raise programs administered by REA.

year. rates to comply with the law' The genesis of the OMB broadside Between 1987 and 1990, requirements. Fortunately, the was their philosophical Allegheny's net power rates tougher Clean Air Act willhave opposition to non-profit, actually billed to our 14 member minimal impact on Allegheny consumer-owned cooperatives.

cooperatives rose an average of since 74 percent of the power we Allegheny responded to OMB's only 0.66 percent a year. When deliver to our members is inaccurate and hackneyed attacks adjusted for inflation, the cost to produced by technologies as they surfaced.

member co-ops actually fell by an hydroelectric and nuclear that As proof of Allegheny's average 4.82 percent per year do not cause the air pollution the strong financial footing, Moody's through the period. Act is designed to clean up. Investors Service affirmed the That lid on rate increases Both of Allegheny's cooperative's Prime-2 rating for is a dramatic change compared to generating facilities the commercial paper as the 1990 the nine years from 1978 to 1987 Susquehanna Steam Electric fiscal year dawned.

in which rates rose at an average Station, a nuclear power plant, Allegheny was again of 11.4 percent a year. and the Raystown Hydroelectric active in fighting for equity in This positive develop- Project performed in strong transmission access. Such access ment, coupled with a spate of re- fashion in 1990, producing would provide Allegheny with a tail rate increases sought by electricity ahead of budgeted level playing field to obtain investor-owned power goals. The co-op also worked economical power and to become companies, improves our position successfully during the year to a full participant in the bulk compared to our privately-held optimize our resource base through bulk power transactions.

The year also brought unprecedented attacks against the rural electric program. Political ideologues at the White House Office of Management and

llegheny Electric Cooperative, Inc.

Allegheny Electric Cooperative, Inc.

President Jesse C. Tilton III, Clminnan David E. Tnrner.

power market. Allegheny's calls for better transmission access were picked up in the National efforts willcontinue to provide Energy Strategy submitted to benefits well into the 21st Congress by President George and attract new employers. These Century.

Bush. economic development activities In 1990, real progress was A major goal ofAllegheny not only help provide job made towards the organization's is ensuring the economic health of opportunities, but also stabilize primary long-term goal:

our member cooperatives'ervice the economic base of rural providing rural electric areas. During the year, the Pennsylvania and New Jersey. cooperative consumer-members cooperative initiated new efforts The decade of the 1990s with adequate and reliable to help its members retain looks bright for Allegheny. Rate supplies of reasonably-priced existing businesses and industries stability should continue; our 10 electric service.

percent share of Susquehanna power willgrow in value as Mid-Atlantic power markets tighten; our demand-side management

Allegheny Electric Cooperative, Inc .

Allegheny Electric buying electricity. An REA report Cooperative, Inc., based in that year noted Pennsylvania's Harrisburg, Pennsylvania, is an rural residents served by co-ops electric generation and companies claimed, was not were paying electric rates higher transmission (G &T) cooperative economically feasible. than those enjoyed by most co-owned and operated by the 14 Federal help was needed ops across the nation. Something rural electric cooperatives in to electrify rural America. With had to be done.

Pennsylvania and New Jersey. the creation of the Rural As a result, Pennsyl-Allegheny is the exclusive Electrification Administration vania's cooperatives in 1945 wholesale power supplier for (REA) by Presidential order in formed Allegheny Electric these distribution systems. 1935, things began to change. Cooperative, Inc. to serve as their Through them, it serves more Armed with low interest loans wholesale power supplier. With than 600,000 rural residents and and technical advice from REA, the bargaining power of all the businesses. rural people set themselves to the cooperatives behind it, Allegheny Allegheny's 14-member task ignored by the private power was able to negotiate wholesale board of directors one director companies. rates that immediately saved the elected from each of its member Rural electric coopera- co-ops 20 percent on their power electric cooperatives'oards of tives began springing up, as rural bills. By achieving a competitive directors conducts Allegheny's residents banded together to set rate for power on a short-term business to best serve the poles and string wire to bring basis, the member co-ops of consumer-members of the co-ops. electricity to their homes, farms Allegheny could now continue It is hard to fathom and businesses. their expansion, bringing the today, but in the 1930s, only 6 out But once the poles were benefits of electricity to the 75,000 of every 100 rural residents in set, rural people still needed a rural families still without electric America had electric service. The source of power. That source was service.

reason established private the same private power In the early years, long-power companies simply refused companies whose refusal to serve range power supply was not a to serve rural areas. The rural America prompted priority for the relatively new investment necessary to run lines formation of the co-ops. cooperatives. However, as rural into the countryside, the power By 1944, leaders of Pennsylvania's budding rural electric cooperatives realized that, as small individual groups, they were still at the mercy of the large private power companies in

llegheny Electric Cooperative, Inc.

Allegheny officially entered a new era on June 15,1988, when the Raystown Hydroelectric areas grew, so did the need to Project, William F. Matson better insure an adequate power Generating Station, was declared the energy Allegheny supplies to supply not dependent on in commercial operation. Named its member cooperatives today purchases from private power for the first president of does not pollute the air.

companies. Allegheny, Matson Station is the Additionally, this power is In 1966, Allegheny took a cooperative's first wholly generated without the use of oil, major stride toward this goal developed and operated thus lessening America' when, having achieved status as a generating plant. It supplies 4.5 dependence on foreign oil.

preference customer, it began percent of the energy delivered by By pursuing a balanced purchasing hydroelectric power Allegheny, enough for about 8/00 power supply program, generated at the publicly-owned average rural homes. Allegheny is achieving the goal it Niagara Power Project of the Thanks to PASNY, SSES set in 1945: to provide rural Power Authority of the State of and Raystown, a full 74 percent of electric cooperative consumers New York (PASNY). To date, this with an adequate and reliable extremely low-cost hydropower supply of energy at the lowest has saved Allegheny more than possible cost.

$ 207 million compared to the cost of power it would have needed to buy from private utilities.

In 1977, Allegheny contracted to purchase 10 percent ownership in the Susquehanna Steam Electric Station (SSES), a 2,100 megawatt, two-unit nuclear power plant located near Berwick, Pa. In 1990, the facility supplied 56 percent of Allegheny's energy needs.

The publicly-owned Niagara Power Project of the Power Authority of the State of New York (PASNY).

Power Supply To supply power to nuclear plants in the United States its 14 member distribution in 1989 was 60.5 percent, cooperatives, Allegheny uses a according to the U.S. Council for blend of its own generating owns 10 percent of SSES as well Energy Awareness.

facilities, supplemented by pur- as 100 percent of approximately By the end of fiscal year chased power. Power produced at 42 miles of related 500-kilovolt 1990, SSES had provided 1.1 the Susquehanna Steam Electric transmission facilities. billion kilowatt-hours of Station (of which Allegheny owns Pennsylvania Power & Light electricity to meet the needs of 10 percent) and the William F. Company (PP&L), a private Allegheny's member distribution Matson Generating Station power company based in cooperatives. This represents 56.4 (Raystown Hydroelectric Project), Allentown, Pa., is the operator percent of Allegheny's total is supplemented with power and 90 percent owner of the system energy requirements.

purchased from the Power boiling water reactor facility. Once again, the Nuclear Authority of the State of New During a year in which Regulatory Commission ranked York and five private power both units experienced planned SSES among the best operated companies. refueling and inspection outages, nuclear power plants in the SSES still broke its all-time nation. In its Systematic Susquehanna Steam Electric operating records. The annual Assessment of Licensee Station (SSES) capacity factor for Unit 1 was 81.3 Performance report, covering the This 2,100-megawatt, two percent; for Unit 2, 81.0 percent. period August 1, 1989 through unit, nuclear plant in Luzerne When combined, this resulted in a November 30, 1990, the NRC gave County, Pa., added to its already composite capacity factor of 81.2 SSES the highest possible rating in exceptional operating and safety percent. five out of seven categories performance in 1990. Allegheny This figure was well emergency preparedness, plant above budget expectations. In comparison, the average capacity factor for boiling water reactor SSES ANNUALGENERATION TOTAL SYSTEM REQUIREMENTS O

R P SSES 5640%

100 p Raystown .........4.03%

I ~ PASNY ...........13.22%

50 P Penetec ............8.t9%

P Met-Ed .............5.43%

p West Penn .......9.30%

P JCP&L .............2.57%

NOV OEC JAN FEB MAR APR MAY JUN JUL AUG SEP OCT ~ PP&L ..................86%

llegheny Electric Cooperative, Inc.

Matson Station Performance OPERATION & PLANT MAINTENANCEMANHOURS AVAILABILITY Raystown Hydroelectric Project Raystown Hydroelectric Project operations, maintenance/

surveillance, security and safeguards and safety assessment/quality verification.

In the remaining two categories radiological controls and engineering support the facility received the second highest mark, a Category 2. SSES has never received a rating below Category 2 in this five-category rating system.

The National Voluntary C3 Operation ...................54/o Q Generation ............60.1'/o 0

Laboratory Accreditation Program (NVLAP) assessment of the Thermal Luminescent I Power House Maint....31 /o Transmission Maint.....2/o C3 Rec. Facilities Malnt.....7/o Q

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Standby ................36.0/o Forced Outages ......2.3/o Planned Outages ....1.64/o Q Intake/funnel Malnt.....6/o Dosimeter Processing Program at SSES was completed in April 1990. The assessor identified no adverse findings or observations and stated that PP&L's program should be used as a benchmark William F. Matson Engineers, which controls water for NVLAPassessors. Generating Station releases from Raystown Lake, the In July, the Cowanesque The William F. Matson largest lake in Pennsylvania.

Reservoir project was completed Generating Station (Raystown Matson Station completed its and declared in-service. This Hydroelectric Project) is a 21- second full year of operation in project willassure sufficient river megawatt, run-of-river 1990, producing 88 million water for SSES to support two- hydroelectric plant licensed by the kilowatt-hours of electricity. That unit operation if drought Federal Energy Regulatory was 3 percent ahead of budgeted conditions develop in this portion Commission. The facility is goals, based on average of the Susquehanna River basin. located at the Raystown Lake and hydrologic conditions.

Dam in Huntingdon County, Pa. In 1990, overall plant and generates about 4.5 percent of availability was 96.1 percent the energy supplied by above the average for small Allegheny. hydroelectric plants nationwide.

Allegheny operates the plant in close cooperation with the U.S. Army Corps of

Pozoer Supply (continued)

A major accomplishment was owned utilities.)

improvement of unattended As a result, Allegheny's operation during the year up Vermont Department of Public right to an additional 7,700 to 72 percent due to computer Service that they should be kilowatts of Niagara power alarm system modifications. eligible to receive preference in which the cooperative has been As the year ended, the allocation of power generated at receiving while the appeal Corps began the second phase of the publicly-owned Niagara process played out remains a study to investigate the release Power Project in New York. (The intact. Allegheny's total share of of lake water during extreme systems were considered "paper" PASNY power stands at 43.9 drought conditions. As the study agencies since they did not own megawatts.

progresses, Allegheny willassess generation or distribution The appeals court its impact on plant operation. facilities, but simply fronted as concurred with a July 1989 preference customers to turn Federal Energy Regulatory Power Authorihg of the power over to for-profit, investor-State of New York For the second year in a row, Allegheny received good news regarding its allocation of power produced at the Niagara Power Project by the Power Authority of the State of New York (PASNY).

On January 12, 1990, New York Governor Mario Cuomo signed a long-term contract between Allegheny and PASNY.

It extends Allegheny's rights to PASNY power through June 20, 2001. In addition, the contract permits, by mutual consent, an extension of service through October 31, 2003.

In late December, the U.S.

Court of Appeals for the Second Circuit rejected appeals by "paper" municipal electric systems in New York and the The Raystown Hydroelectric Project, Allegheny's first wholly developed and operated generating fncility.

llegheny Electric Cooperative, Inc.

Commission decision that the New York paper municipals were ineligible for preference power because they did not sell and distribute power directly to consumers. Vermont's appeal was rejected because it was incapable of selling and distributing power directly to electric consumers at the retail level.

The court's ruling also

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reaffirms provisions in the federal Niagara Redevelopment Act that non-profit rural electric cooperatives and legitimate municipal electric systems within economical transmission distance have first right, or Allegheny's Principal engineer, Rates

& Forecasting Joseph Znllo.

preference, to 50 percent of the electric power produced at the Niagara Power Project. million. The extra 7.7 megawatt The Niagara project allocation alone shaves Power Sales produces electricity at a low cost; Allegheny's purchased power On June 22, the in fact, it is among the least costs $ 1.6 million annually, based Allegheny board approved a expensive in the U.S. Since on current rates. short-term bulk power sale to Allegheny began buying it in Baltimore Gas & Electric 1966, PASNY power has saved the Supplemental power Company. The sale allowed cooperative more than $ 207 purchases Allegheny to market its projected million, compared to the cost of Allegheny supplements excess summer energy from the purchasing the same amount of its wholesale power supply with Susquehanna Steam Electric electricity from private power purchases from five private Station and provide net benefits companies. power companies. In 1990, to Allegheny's members. More In 1990, Allegheny's purchases were made from the importantly, however, the sale PASNY savings amounted to $ 7 Pennsylvania Electric Company, firmlyestablished Allegheny as a West Penn Power Company, player in the wholesale power Metropolitan Edison Company, market.

Jersey Central Power & Light In late August, Allegheny Company and Pennsylvania extended the sales agreement Power & Light Company. through May 1991, with additional anticipated savings.

Project Review In 1990, Allegheny Marketing and research continued to implement and ex- Allegheny continued its pand programs designed to rebate program and provided manage electric use, increase the Coordinated Load assistance on research, promotion; kilowatt-hour sales and ensure Management System in late 1986, rate design and computer reliable transmission systems, as using load management equip- modeling services to its member well as explore potential gener- ment to reduce peak demand at co-ops. Several energy surveys of ating projects. individual substations. Currently, non-residential 100 substations are connected to were conducted, with members'acilities Load management the system. By the end of 1990, energy and load-saving By shifting electrical use more than 21,000 load control recommendations made.

of residential water heaters, receivers (which switch off the As part of its research electric thermal storage and dual- heating element in water heaters commitment, Allegheny fuel home heating systems from during peak hours) had been participated in funding research peak demand periods to times of installed in the homes of as part of its membership in the lesser demand, the Coordinated volunteer consumer-members. Pennsylvania Electric Energy Load Management System Participating cooperatives Research Council (PEERC).

improves system efficiency, reported gross power cost savings Results of this research will lessens the costly demand charges of $ 1.8 million during the year. improve environmental quality, Allegheny must pay for Load management improve the efficiency of existing purchased power and reduces the coordinating system computers generation plants and broaden the need for new generating capacity. were installed in Allegheny wise use of electricity. PEERC Allegheny and its headquarters in October 1989. The already has an ongoing project to member cooperatives launched coordinating system receives protect steam boiler tubes in coal-electric use and climate data from cooperative member systems.

Allegheny technicians use this data for load forecasting and systemwide load control.

Pictured to the right, the Coordinated Load Management system improves system efficiency, lessens costly demand charges for purchased power and reduces the need for new generating capacity.

10

llegheny Electric Cooperative, Inc.

burning plants by the controlled. This provides the development of tube coatings. double benefit of a substantial Projects are also increase in, or retainage of, underway to study power quality to their consumer-members. This energy sales, with no contribution effects of energy-conserving policy encourages increased to billing demand. Allegheny's variable speed drives and to electric water heating and the member cooperatives reported develop an industrial heat pump installation of electric thermal spending $ 230/24 on all forms of capable of concentrating storage (ETS) units and energy- marketing incentives in 1990.

industrial waste for more efficient efficient heat pumps.

disposal. The cooperatives partic- Transmission Projects In 1990, Allegheny ipating in the rebate program Allegheny marked a continued awarding rebates to received a total of $ 57,000. Their major milestone on July 10 with member cooperatives which offer initiatives resulted in the the energization of the Fairfield-load-building incentive programs installation of 1,417 water heaters, MillCreek transmission line and 1,103 kilowatts of ETS and 95 heat pumps. Virtually all the water heaters are or can be load-

Project Revieur (continued) substation in east-central Lycoming County, Pa. The project proposed Allegheny River Locks was the first transmission line and Dams 8 and 9 Hydroelectric built and owned by Allegheny Prolects.

and will remedy service dif- Cooperative. Adequacy of power In July 1987, after careful ficulties previously experienced from current transmission study of the project by co-op staff by about 2,000 consumer- facilities, coupled with rapid and private consultants, the members of Sullivan County growth in the Seven Springs Allegheny board of directors Rural Electric Cooperative, an Mountain Resort area, voted to transfer the development Allegheny member. necessitated the project. Efforts rights to Sithe. The sales agree-The new 5.5 mile, 69-kilo- include construction of 7.4 miles ment provided for Allegheny to volt transmission line replaces a of 138-kilovolt transmission line receive three payments totalling longer Pennsylvania Electric and a step-down substation. $ 2.5 million and gives the Company transmission line that As the fiscal year wound cooperative the right to partic-ran through rugged terrain. The to a close, Allegheny was also ipate actively in all major new Allegheny line interconnects reviewing requests to provide development decisions.

with Pennsylvania Power & Light additional transmission services Allegheny also has the option to Company facilities. to member cooperatives. buy the hydroelectric plants for In the planning and $ 1 in the year 2030.

procurement stage is the Donegal- Allegheny River Locks and The projects began gen-Seven Springs Transmission Dams No.8 and No.9 erating power in October 1990.

Project in Fayette County, Pa., Hydroelectric Projects which willprovide additional During 1990, Allegheny service to Somerset Rural Electric received $ 1.4 million from Sithe Energies U.S.A. as the third and final payment for the transfer of development rights for the Pictured to the right is the Fairfi'eld-MillCreek transmission line and substation, Allegheny's first wholly-owned and developed transmission project.

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Financial Review As the fiscal year 1990 dawned, Allegheny was the straight line method by the year recipient of most welcome news. 2000. In addition, Allegheny has Moody's Investors Service, one of In addition, Moody's to recognize depreciation expense Wall Street's major bond-rating praised Allegheny's working that were deferred through 1989.

firms, confirmed Allegheny's relationship with member co-ops This was done in1990by a one-Prime-2 rating for commercial and its sensitivity to member time lump sum write-off of paper. The rating confirmation needs to keep retail rates $ 31,057495.

followed Moody's review of the competitive with other utilities. Net year-end margins credit risks of nine generation and During February, prior to the FASB 92 write-off transmission (G&T) cooperatives. Allegheny's board voted to name were $ 8,997,913. Of this, Allegheny was one of only two Mellon Bank as trustee and $ 6,416,815 will flow back to G&Ts to successfully pass National Investment Services of member cooperatives in 1991 Moody's review. America, Inc., as manager of the through Allegheny's margin According to Moody's, cooperative's nuclear stabilization plan. The remaining Allegheny's Prime-2 rating is decommissioning reserve fund. pre-write-off margin of $ 2,581,098 supported by the cooperative's This came in response to a met Allegheny's Times Interest manageable capital and rate Nuclear Regulatory Commission Earned Ratio (TIER) goal for 1991 increase requirements during the (NRC) mandate that licensees of of 1.06.

next several years, an adequate nuclear power plants ensure power supply and strong sufficient funds are available to Financing liquidity. Moody's was impressed decommission the facilities at the The largest single expense that Allegheny required no end of their useful lives. item for Allegheny is interest drastic rate increases for phasing Allegheny submitted a plan to payments, accounting for more in the remainder of its cover its 10 percent share of SSES than 32 percent of its total Susquehanna Steam Electric decommissioning costs to the expenses. Since 1978, the Station (SSES) capacity. NRC in June 1990. cooperative has borrowed a total Also cited as a plus was of $ 555 million from REA, repaid the Allegheny board of director's Margins $ 73 million and paid a total of solution to the Financial In 1987, the Financial $ 482 million in interest.

Accounting Standards Board's Accounting Standards Board To control interest costs, Statement No. 92, the accounting (FASB) issued Statement No. 92, Allegheny makes every effort to procedures which affect the way which established new use the lowest-cost financing the cooperative depreciates its accounting rules relative to cost vehicles available. In fiscal 1990, SSES investment. phase-in plans of utilities, such as Allegheny's modified sinking fund depreciation method used on certain SSES assets.

FASB 92 requires Allegheny to change the method of depreciation used on SSES to a

llegheny Electric Cooperative, Inc.

portfolio. Allegheny used REA these included pollution control guaranteed loans issued by the bonds, commercial paper, lines of Federal Financing Bank (FFB) for credit, REA guaranteed and the Susquehanna Steam Electric insured loans, plus a leveraged Commercial paper: Station and kept approximately lease. Allegheny maintains a 18.7 percent of its debt on a short-

$ 52 million commercial paper term basis with FFB.

Pollution control bonds: program. When needed, commer- At 5 percent interest, REA Use of tax-exempt var- cial paper is used to supplement insured loans are the lowest-cost iable rate bonds to finance some short-term project financing. loans available and Allegheny of the pollution control facilities at Allegheny did not need to utilize used them in part for its trans-SSES have allowed Allegheny to the commercial paper program mission and load management .

net very attractive interest rates. during 1990. projects. A total of $ 13,943,000 in In 1990, the average yield on the REA guaranteed and insured bonds, which bear interest at Lines of credit: loans were advanced to the weekly and monthly variable Allegheny has several cooperative in 1990.

rates, was under 6.2 percent. bank lines of credit, with a $ 23 Issued through the Lehigh million limit available. The coop- Leveraged Lease:

County Industrial Development erative did not draw on these Execution of a leveraged Authority, the bonds are backed funds in 1990. lease on the Raystown by irrevocable letters of credit. Hydroelectric Project in 1988 REA guaranteed and allowed Allegheny to immediate-insured loans: ly make the cost of power from A blend of traditional REA-guaranteed and REA-insured loans continued as the mainstay of Allegheny's debt OPERATING EXPENSES FINANCING SOURCES 0 SSES----------. 63.07% soo Q Raystown ................1.92%

200 Q Purchased Power..24.08%

Q Wheeling.......,.........6.94%

Q Administration ........3.99%

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Financial Reviezo (conan'ued) the plant to its member making and reviews operating cooperatives lower than the practices.

purchased power it replaced. (CFC) provided a concurrent loan Allegheny's board of Compared to traditional of $ 693,000 for the load directors is democratically financing, the lease is expected to management project, as well as elected. One director is selected yield significant savings over the financing for Allegheny's from each of Allegheny's member life of the project. headquarters the Locust Court cooperatives. The board governs Under the sale/leaseback Building. all policies, including the arrangement, Allegheny establishment of rates. Board transferred its interest in the plant Taxabi liter review of the rate-making process to a firm able to utilize the Allegheny has a private and approval of each rate change available tax advantages. The letter ruling from the Internal assures the member cooperatives cooperative then used the Revenue Service providing for the that the price they pay for proceeds to repay construction cooperative to remain taxable electricity is fair and reasonable.

debt. Allegheny willmake until an application is made to semiannual payments throughout become a tax-exempt organization All-Requirements Contract the term of the 30-year lease and again. Allegheny expects to have Each of the 14 coopera-has the option to repurchase the tax losses to carry forward to tives served by Allegheny has project at a capped market price offset estimated tax liabilityfor entered into a Wholesale Power when the lease expires. the foreseeable future. and Power Cost Pooling Contract, Allegheny retains all commonly referred to as an All-operating and maintenance Requirements Contract. As a responsibility under the condition for approval of loans to agreement. The arrangement also Operations Allegheny, REA required allows the cooperative to reduce Allegheny's members to execute financing costs over the lifetime of Regulation these contracts. Allgeneration the project and accelerate benefits Unlike for-profit,investor- and transmission cooperatives to the early years. owned utilities, Allegheny and its borrowing money from REA are member cooperatives are required to have substantially CFC: consumer-owned and non-profit. similar contracts signed by their In addition to a line of They are regulated by their member distribution credit, the National Rural Utilities consumer-members acting cooperatives.

Cooperative Finance Corporation through a member-elected board of directors and are not under the jurisdiction of the Pennsylvania Public UtilityCommission or the New Jersey Board of Public Utilities. However, REA does approve the cooperative's rate

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llegheny Electric Cooperative, Inc.

Meeting of the Allegheny Electnc Cooperative board of directors.

By signing this contract, Allegheny's member distribution This law helps avoid cost-cooperatives agree to purchase all ly duplication of facilities, waste their power supply needs from to December 31, 2025 to cover the of materials and natural Allegheny. They also agree to life of the plant. resources, plus it improves adjust their retail rates to meet all efficiency. It also allows costs and TIER requirements. cooperatives to retain large loads Territorial Integrity In January 1977, each of The Unincorporated Area such as businesses, factories and Allegheny's member cooperatives Certified Territory Law of 1990, retail centers that move into co-op executed an amendment to the territory. These additional loads originally signed into law in July original 1965 contract to cover 1975 and codified in 1990, assigns help the cooperatives, which Allegheny's purchase of 10 exclusive territories for all of primarily serve sparsely-percent of the Susquehanna Pennsylvania's rural electric coop- populated areas, to moderate Steam Electric Station. The rates by spreading their costs eratives and private power amendment extended the contract companies. The law states that over greater sales.

each electric supplier has the exclusive right and duty to provide service within its own territory.

17

Member Revenue and Rates Allegheny's total whole- Gas & Electric Company, greatly sale revenue from power sales to contributed to the control of rates its 14 member cooperatives in increased their energy cost rates forecast for 1991. SSES produced 1990 was $ 115.1 million. This is in 1990, which translate into retail 1.123 billion kilowatt-hours of after a $ 6.4 million reduction for rate increases of 1.8, 4.8 and 2.8 electricity in 1990 1.6 percent the Cost of Service Billing percent, respectively. West Penn ahead of budget. Matson Station Adjustment to be returned to the Power filed for a base retail rate provided 88 million kilowatt-member co-ops during fiscal 1991. increase of 10.8 percent and was hours 3 percent above The $ 115.1 million represents a eventually granted a 6.7 percent projections. As a result, member revenue increase of $ 0.7 million, boost; Duquesne Power and Light cooperatives began receiving or 0.61 percent, over that of 1989. implemented a 9.2 percent rate monthly credits on Allegheny's The majority of this increase. In December 1990, the power billings early in fiscal 1991.

increase was due to the addition New Jersey Board of Public These Cost of Service Billing of 10 megawatts of Susquehanna Utilities approved a settlement Adjustment credits to member Steam Electric Station (SSES) which increases Jersey Central cooperatives which total $ 6.4, capacity to Allegheny's rate base Power & Light Company's retail million follow the $ 4.9 million as planned under the Allegheny/ electric rates by 6.1 percent. returned in 1990.

Pennsylvania Power & Light Member cooperatives had (PP&L) buyback agreement. The more reasons to smile at year' Non-member revenue remaining part of the revenue end as well. For 1991, Allegheny's Allegheny's non-member boost was due to normal system projected wholesale billing rate to revenue has been historically load growth. On an average cost its members calls for a 0.78 generated by its SSES buy-back basis, with the 1990 and 1989 Cost percent reduction compared to agreement with Pennsylvania of Service Billing Adjustments 1990. When expressed on an Power & Light Company (PP&L) considered, Allegheny's rate to its average cost basis, the rate and from the sale of PASNY members actually decreased by decrease amounts to 0.46 mills per hydropower to eight 'municipal 1.05 mills or 1.8 percent. Even kilowatt-hour to the member electric systems and four private without the billing adjustments, This decrease comes

'ooperatives.

power companies.

the average rate decreased by 0.35 despite significant expected Under the terms of the mills, or 0.59 percent. increases in the cost of agreement with PP&L, each year By comparison, Pennsyl- supplemental power purchased PP&L "buys back" a portion of vania Electric Company, from Jersey Central Power & SSES power to which Allegheny is Metropolitan Edison and PP&L Light and Metropolitan Edison. entitled. Taking power in incre-The excellent operation of both SSES and the William F.

Matson Generating Station during 1990, coupled with the implementation of an extended bulk power sale with Baltimore

Allegheny Electric Cooperative, Inc.

Board of Directors

Board of Directors k,(~,

Harold Hines David Turner Alston Teeter Northwestern Rural Electric Warren Electric Tri-County Rural Cooperative Assoc. Coo erative Electric Cooperative Donald J. Songer United Electric Cooperative, Inc.

Winston Donaldson Central Electric Cooperative Donald Streams Harold Ritehey Southwest Central Valley Rural Electric Rural Electric Cooperative Cooperative Corp.

'g Lowell Friedline Ralph Fischer John Ritehey Somerset Rural Bedford Rural Electric New Enterprise Rural Electric Coo erative Coo erative . Electric Cooperative

lleglteny Electric Cooperative, Inc.

John B. Drake Claverack Rural Electric Cooperative John Anstadt Sullivan County Rural Electric Cooperative James Henderson Susser Rural Electric Cooperative John Looser Adams Electric Cooperative

llegheny Electric Cooperative, Inc.

ments has allowed Allegheny to Energy sales largely avoid the rate shock many Allegheny's total system other utilities have faced when a appointed PASNY bargaining energy sales for fiscal 1990 were new generating facility comes on agent by the Governor of 1,991 gigawatt-hours, while peak line. Pennsylvania. Since 1985, demand reached a record high of The agreement ends in Allegheny has purchased PASNY 450 megawatts in January. When February 1991, when Allegheny power and wheeling services for compared to 1989, energy sales willretain 210 megawatts, its full the eight municipal electric increased by 47 million kilowatt-10 percent share of SSES. In 1990, systems and four private power hours, or 2.4 percent, with peak Allegheny's recapture of SSES companies that receive part of demand rising by 17.7 megawatts Unit 2 rose to 90 megawatts. The PASNY's allocation. or 4.1 percent. The increase in Unit 1 sellback was completed in During 1990, a third total system energy sales resulted June 1989. source of non-member revenue primarily from normal (fore-Allegheny's second was obtained from a short-term casted) residential load growth, source of non-member revenue bulk power sale. although the record high peak comes from its role as Allegheny also continued demand resulted from extremely Pennsylvania bargaining agent to to emphasize its cash manage- cold weather during the last two the Power Authority of the State ment program. Throughout the weeks of December 1989.

of New York (PASNY), operators year, the cooperative kept its of the Niagara and St. Lawrence funds working in order to power projects. Allegheny was optimize the use of each available dollar. Allegheny's interest income in 1990 was $ 4.6 million, as compared to $ 4.3 million in 1989 an increase of 7.1 percent.

TOTAL ALLEGHENYPOWER REQUIRMENTS PEAK DEMAND ENERGY SALES Ol g 5 5 g y I g 59 ~ Q $ EVi 1500 CI I

I 1000

'81 '82 '83 '84 '85 '86 '87 '88 '89 '90 '81 '82 '83 '88 '85 86 '87 '88 '89 '90 19

Financial Pages Audited Financial Statements and Qther Financial Information Audited Financial Statements Five-Year Financial Statement .. 24 Five-Year Statement of Revenue & Expenses . .25 Balance Sheets ...~..... ~.... .~...~.... ..

~ ~ ~ ~ ~ ~ ~ .. ..

~ ~ ..~...... ~ .~ .. ..

~ ~ .~.... ~ .~~. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~~~~~~o 26 Equities and Liabilities. 27 Statements of Operations 28 S tatements of Equities ~ .~...... ~ ~ ~ ~ ~ ~ ~~~~~~~~~~~o 29 S tatements of Cash Flows .............................................................................30 Financial Notes Notes to Financial Statements ~ ~ ~~~~~ 32 Report of Independent Auditors. .41 Summary of Operations - Allegheny Member Systems ............... .....42

Five -1'ear Financial Statement Assets 1990 1989 1988 1987 1986 General plant 633,120,217 616,987/94 609,034,277 602,287,851 578,747,706 Construction work in progress 5,903~1 9/40/32 6,938~4 26,11~71 23/66/27 Total plant 639P23~ 626/27~ 615,972/51 602P14~

Accumulated provision for depreciation &amortization 137P81%7 88,725,714 70/28,954 SSW1N2 Net Plant 501~121 537~1,912 54S,143P97 572,738,790 563/63@79 Non-utilityproperty- net 4,970~ 5~318 Capital credits- NRUCFC Investm'ents in associated 296,167 3~

5P55,971 SPBP43 344,133 5$ D1,705 3330/10 323/92 organizations 3+79~1 3/11,153 3P10P55 3/1 0P55 Other investments 4,012,303 Cash - general funds 487 1/96/72 543,990 -91@8 Cash- construdion fund 12,103 1+6 251~ 1PN 1P00 Temporary investments 47P19,705 35P78$ 14 39~,723 ~18~ 51515 Special funds 1,901,112 1,903/23 2P71,952 2,173/10 2,782+1 Notes receivable 4,148,632 Accounts receivable 1IP49+90 13,734~ 14+11P35 11,915r$ 66 10~$ 97 Prepayments 1,113,921 1P52P28 1P30P83 988,752 203,773 Other current &accrued assets 57~ 342P28 333478 109+12 22P67 Deferred debits . 499/00 1/50,929 848/ii 1396~ 2@97/11 Total assets 581+18+98 599,7651 614/93,944 621,728P76 594,727/10 Liabilities 2~

Memberships Patronage capital Donated capital 3~ 2/00 50,730 2/00 38,941/10 S0,730 36~~

50,730 248 34,174/53 492 2/00 29/90+43 49N2 Long-term debt - REA S,715P56 4P1 0/92 S011,153 502/82/63 499,991/17 Long-term debt - other 526310+77 52?+11/95 30/18,791 30~$ 78 30/64,736 Notes payable 5,180P00 19$ 00P00 2P46,000 Accounts payable 15/45~2 4@87,707 8/01,704 8,923~ 7/67/72 Cost of service adjustment Accrued taxes 6/16+15 545+74 4/93/35 551~

SP30~

346/21

~$513@00 73 564/63 Accrued interest Other current &accrued liabilities 3~011 683@32 3@48/15 664/08 3m.179 12,751 3~~85,971 3,965r61 133,179 Deferred credits 19@41@85 20@2@25 22P4,732 19~9/16 20$ 11$ 37 Total liabilities 581+18+98 599,7651 614/03,994 621,728P76 594,727/10 Member revenues 1990 1989 1988 1987 1986 Adams 16,920P11 16~~ 15~/24 13,940P70 13P44~1 Bedford 4,948@32 4,934P84 4,717/74 4~,952 4/62~

Central 11,170@$ 2 11,123~ 10,795,933 10$ 39P08 9~/22 Chverack New Enterprises 8,739,960

~4+18 8/78,763 8~~ 7,971,779 7%7m 2,183+2 2P66/95 1,994/46 1/60/82 Northwestern 10+23,184 10/75,739 9,994,179 9,721/37 9/25,703 Somerset 8,737@37 8,77486 8~1~ 7~$ 96 7/19,154 Southwest Central Sullivan 14+25~4

~5,952 14~,709 2@44,198

'14P05~

2,193@27 13'~

2,105~

1~,752 1,994~

Sussex 6+12,906 6@33/50 6P04349 5~,934 SP82,148 Tri~unty United Valley 7,199~

7~18 10~,759 7,194~7 7P14$ 9S 10~~9 6/87/05 7,709+$

9,955,957 7~

6~,977 9,177@31 6,195/84 7,137,799 8~9@28 Warren 3P84,646 3,114P60 3P51 398 2,974,793 2,741810 Total member revenues 115,137,651 114~,195 ~ 109~2@08 103~$ 95 97,170@75 24

Tive -Year Statement Of Revenue & Expenses 1990 1989 1988 1987 1986 Electric energy sales:

Members 115,108,723 114,434,195 109/32/08 103,425395 97,170375 Non-members 14,138+82 16,057,630 24/47,984 31,974501 42,411,238 Total receipts 129,247,605 130,491,825 133,880,792 135399g96 139/81,613 Cost of power 32,085,914 33+58,887 40,119,659 41,231,647 43+42+73 Wheeling 9,249,841 8+45,773 7,441,025 6,668+17 5,786,049 Raystown:

Generation Operation & Maintenance 2,560,147 2+46,261 736,696 Interest 116,970 Transmission 183,550 200+21 Taxes 19@85 16,884 Other projects:

Operation & maintenance 123,663 Transmission 24,052 Depreciation 466,190 SSES:

Generation Operation & maintenance 18,024,408 18+18,905 19,490,190 14,987,966 16,257,078 Fuel 9,512,667 9,413,177 8,634@41 10@20,233 7,874,925 Depreciation 9,034,865 9+76,144 8,694,096 7+76,680 6,284+11 Taxes 3,437,242 3,429,845 3,608,751 3+90,699 3,140,926 Transmission Maintenance 216,007 317,266 207,431 194+45 200,626 Depreciation 804,907 804,768 804,477 800,450 780,191 Interest 43,018,285 42,724,066 44,147,039 45,839,094 51389,042 Interest charged to Construction - Credit -909,146 -1,233,918 -2+18+73 -2,407,405 -3+80,029 General & administrative 5,315,694 5,153,748 3,980,637 4,421@41 4,251,885 Total operation expense 133,167,671 132.772327 135,662,439 133,023567 136,128,077 Depreciation 131+97 134,988 120/33 113%2 92,264 Taxes 136,143 109,750 102,094 97,266 95,054 Other deductions 30817,247 -701,433 472@83 ~,214 412,172 Total expenses 163+52,458 132@15,632 135+12,683 132,601,451 135,903,223 Operating margins -34,604+53 -1$ 23gV -1$ 31$ 91 2,798~5 3,678/90 Interest income 4,636,182 4/28,040 2,924/68 1/22,193 1/98~0 Other - profit/(loss) net 1+62,261 28,940 596398 245,604 -76,186 Other capital credits 29,912 21,184 23/25 17,668 55,254 Net margins -28,476+98 2~~7 2313,200 4/83,910 5,155,988

Balance Sheets October 31 1990 1989 (In Thousands)

ASSETS Electric UtilityPlant Note C In service Note B $ 624,880 '$610308 Construction work in process 5,903 10,274 Nuclear fuel in process 8,240 6,679 639,023,, 627,261 Less accumulated depreciation and amortization 137,581 88,725 501,442 538,536 OTHER ASSETS AND INVESTMENTS Nonutility property, at cost (net of accumulated depreciation of $ 1,483 in 1990 and $ 1@23 in 1989) 4,971 5,056 Investments in associated organizations Note D 4,250 4,277 Other investments Note A 5,812 1,800 Other noncurrent assets 1,352 889 16,385 12,022 CURRENT ASSETS Cash and short-term investments of $ 47,288 in 1990 and $ 35,144 in 1989 47,031 34,735 Accounts receivable from members 11,045 9329 Other accounts receivable 4,653 5,069 Other current assets 862 738 63,591 49,871

$ 581,418 $ 600,429 26

~ ~

Equities and Liabilities October 31 1990 1989 (InThousands)

EQUITIES Memberships 3 $ 3 Donated capital 51 51 Patronage capital 38,574 38,940 Other margins and equities Note K (28,476)

Unrealized loss on marketable equity securities (177) 9,975 38,994 LONG-TERM DEBT, less current portion Note F 495,031 489,919 CURRENT LIABILITIES Notes payable Note E 27,400 27,800 Current portion of long-term debt Note F 9,695 8,803 Accounts payable and accrued expenses 13,435 9,407 Accounts payable to members 6,540 5,003 57,070 51,013 DEFERRED CREDITS Deferred income tax benefits from safe harbor lease Note G 12,166 12,942 Other deferred credits 7,176 7561 19@42 20/03

$ 581,418 $ 600,429 See notes to financial statements.

27

Statements of Qperations Year Ended October 31 1990 1989 (In Thousands)

Operating revenue, including sales to members of $ 115,138 in 1990 and $ 114,434 in 1989 $ 129,277 $ 130,492 Operating expenses:

Purchased power 32,086 33359 Transmission 9,646 8,864 Production 20,612 20,865 Fuel 9,513 9,413 Depreciation 10,437 10,316 Taxes 3,484 3,454 Administrative and general 5+96 5,256 91+74 91/27 OPERATING MARGINBEFORE INTEREST AND OTHER DEDUCTIONS 37,903 38,965 Interest and other deductions:

Interest expense

'3,018 42,724 Allowance for funds used during construction (909) (1,234)

Other deductions (credits), net 52 (9) 42,161 41,481 OPERATING MARGIN (DEFICIT) (4,258) (2/16)

Nonoperating margins:

Net nonoperating rental income (loss) 2 (23)

Interest income 4,602 4,293 Other 1,460 52 6,064 MARGINBEFORE INCOME TAXES AND CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 1,806 1,806 Deferred income tax benefits from safe harbor lease 747

'FMARGIN BEFORE CUMULATIVEEFFECT CHANGE IN ACCOUNTING PRINCIPLE 2,582 2/53 Cumulative effect of change in accounting principle

-Note K (31,058)

NET MARGIN (DEFICIT) $ (28,478) $ 2+53 See notes to financial statements.

28

~ ~

Statements of Equities Unrealized Other Loss on Margins Marketable Donated Patronage and Equity Memberships Capital Capital Equities Securities Total (In Thousands)

Balance at November 1, 1988 3 $ 51 $ 36@87 $ $ $ 36,441 Net margin 2553 2453 Balance at October 31, 1989 51 38,940 38,994 Change in unrealized loss on marketable equity securities (177) (177)

Net margin (deficit) (28,476) (28,476)

Retirement of capital credits (366) (366)

BALANCEAT OCTOBER 3L 3990 $ 3 $ 51 $ 38,574 $ (28,476) $ (177) $ 9,975 See notes to financial statements.

29

Statements of Cash Flows Year Ended October 31 1990 1989 (InThousands)

OPERATING ACTIVITIES Net margin (deficit) $ (28,476) $ 2853 Adjustments to reconcile net margin (deficit) to net cash provided by operating activities:

Depreciation and fuel amortization 18,628 18,480 Amortization of gain on sale of electric utility plant (58) (44)

Deferred income tax benefits from safe harbor lease (776) (747)

Cumulative effect of change in accounting principle 31,058 Changes in operating assets and liabilities:

(Increase) decrease in operating assets:

Noncurrent assets (463) 2300 Accounts receivable from members (1,716) (65)

Other accounts receivable 416 78 Other current assets (124) (88)

Increase (decrease) in operating liabilities:

Accounts payable and accrued expenses 4,028 (3,258)

Accounts payable to members 1,537 (400)

Other deferred credits (327) (1301)

NET CASH PROVIDED BY OPERATING ACTIVITIES 23.727 17508 INVESTING ACTIVITIES Additions to electric utility plant (12,565) (11,876)

(Increase) reduction in investments in associated organizations 27 (30)

Purchase of other investments (13,191)

Proceeds from sale of other investments 9,002 Proceeds from sales of utility and nonutility property 58 32 NET CASH USED IN INVESTING ACTIVITIES (16,669) (11,874)

FINANCINGACTIVITIES Proceeds from long-term debt 13,944 2,259 Payments on notes payable and long-term debt (8,340) (12,837)

Retirement of capital credits (366)

NET CASH PROVIDED BY (USED IN) FINANCING ACTIVITIES 5,238 (10+78)

INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 12,296 (4,944)

Cash and cash equivalents at beginning of year 34,735 39,679 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 47,031 $ 34,735 See notes to financial statements.

30

Financial ¹tes

¹tes to Financial Statements NOTE A

SUMMARY

OF SIGNIFICANTACCOUNTING POLICIES Allegheny Electric Cooperative, Inc. (Allegheny) is a rural electric cooperative utility established under the laws of the Commonwealth of Pennsylvania. Financing assistance is provided by the U.S. Department of Agriculture, Rural Electrification Administration (REA) and, therefore, Allegheny is subject to certain rules and regulations promulgated for rural electric borrowers by REA. Allegheny is a genera-tion and transmission cooperative, providing power supply to fourteen owner/

members who are rural electric distribution cooperative utilities providing electric power to consumers in certain areas of Pennsylvania and New Jersey.

Allegheny maintains its accounting records in accordance with the Federal Energy Regulatory Commission's chart of accounts as modified and adopted by REA.

Electric UtilityPlant and Depreciation: Electric utility plant is stated at cost, which includes an allowance for funds used during construction. Depreciation for nuclear utilityplant production assets is provided on the modified sinking fund method under the amended phase-in plan adopted to conform to Financial Accounting Standards Board (FASB) Statement No. 92 for 1990, and, for 1989, on the modified sinking fund method under the original phase-in plan adopted prior to application of FASB Statement No. 92 (see Note K). The straight-line method is used for all other assets, except nuclear fuel. The cost of units of property retired or replaced is re-moved from utility plant accounts and charged to accumulated depreciation.

Nuclear Fuel: Nuclear fuel usage is charged to fuel expense based on the quantity of heat produced for electric generation. Under the Nuclear Waste Policy Act of 1982, the U.S. Department of Energy (DOE) is responsible for the permanent storage and disposal of spent nuclear fuel removed from nuclear reactors. Allegheny currently pays to Pennsylvania Power & Light Company (PP&L), co-owner of Susquehanna Steam Electric Station (SSES), its portion of DOE fees for such future disposal services.

Cost of Decommissioning Nuclear Plant: Allegheny's portion of the estimated decommissioning costs of SSES is charged to operating expenses over the estimated useful life of the plant. As required by the Nuclear Regulatory Commission, in 1990 Allegheny established a Decommissioning Trust Fund (Trust) which is restricted for use to ultimately decommission SSES. No payments were required to be made to the Trust in 1990. Included in other investments is $ 4.1 million of funds which

,

Allegheny's Board of Directors has restricted for future payments to the Trust.

32

~ ~

A NOTE A (continued)

Alloroance for Funds Used During'onstruction: Allowance for funds used during construction represents the cost of directly related borrowed funds used for construction of or additions to an electric utility plant. The allowance is capitalized as a component of the cost of electric utility plant while under construction.

Investments in Associated Organizations: Investments in associated organizations are carried at cost.

Preliminary Surveys: Costs of preliminary surveys for potential development projects are recorded as deferred charges in other noncurrent assets. Ifconstruction of a project results from such surveys, the deferred charges are transferred to the cost of the facilities. If a preliminary survey is abandoned, the costs incurred are written off.

Cash Equivalents: For purposes of the statements of cash flows, Allegheny consid-ers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents.

Short-Tenn Investments: Short-term investments are carried at cost, plus accrued interest, which approximates market value.

Other Investments: Other investments include United States government obliga-tions, corporate obligations, and Common Stocks (marketable equity securities).

The U.S. government and corporate obligations are stated at cost which approxi-mates market value. Marketable equity securities are carried at the lower of their aggregate cost or market value. As of October 31, 1990, their cost was $ 984,000 and their market value was $ 807,000. Changes in net unrealized losses on noncurrent marketable equity securities are recorded directly in a separate equities'ccount and are not included in the determination of net margin. The change in net unreal-ized loss reflected in the equities section for the year ended October 31, 1990 is

$ 177,000.

Income Taxes: Investment tax credits, other than those sold through the safe harbor lease arrangement, are accounted for under the flow-through method whereby credits are recognized as a reduction of income tax expense in the year in which the credit is utilized for tax purposes.

Variations in the customary relationship between pretax accounting income and income tax expense are the result of patronage dividends. Net operating losses for financial and tax reporting purposes differ as a result of timing differences relating primarily to depreciation.

33

¹tes to Financial Statements (continued)

NOTE A (continued)

Margin Stabilization Plan: Allegheny has established a margin stabilization plan which has been approved by REA. Under the provisions of the plan, Allegheny develops a budgeted margin each year based on a targeted Times Interest Earned Ratio (TIER) of 1.06. If the actual margin realized is in excess of the TIER, Allegh-eny records the difference as a reduction of the current year's operating revenues and as a liabilityto its members. Conversely, if the actual margin realized is less than the TIER, Allegheny records the difference as an addition to the current year' operating revenues and as a receivable from its members. The liabilityor receivable l recorded at the end of each year is incorporated into Allegheny's rate structure for the following year through a cost-of-service billing adjustment made by Allegheny to its members. During the years ended October 31, 1990 and 1989, operating revenues were reduced by $ 6.4 million and $ 4.9 million, respectively, due to actual margins exceeding the TIER. These amounts are included in accounts payable to members at October 31, 1990 and 1989.

The aforementioned margin stablization plan willremain in effect through October 31, 1991.

Reclassification: The $ 1.8 million of investments included in other noncurrent assets in the 1989 financial statements has been reclassified to other investments to conform with the 1990 presentation.

NOTE B ELECTRIC UTILITYPLANT IN SERVICE Electric utility plant in service consists of the following:

Depreciation/

Amortization, October 31 Lives/Rates 1990 1989 (In Thousands)

Nuclear UtilityPlant:

Production 39 years $ 513,408 $ 509,469 Transmission 2.75% 32,201 30,191 General plant 3% - 12.5% 825 826 Nuclear fuel Heat production 71,921 68,388 Non-Nuclear UtilityPlant 3% - 33% 6/25 1,434'OTAL

$ 636,880 $ 610,308

NOTE C SUSQUEHANNA STEAM ELECTRIC S'FATION I

Allegheny owns a 10% undivided interest in SSES. PP&L owns the remaining 90%.

Both participants provide their own financing. Allegheny's portion of costs associ-ated with the station totalled $ 629 million and $ 618 million at October 31, 1990 and 1989, respectively. Allegheny's share of anticipated costs for ongoing construction and nuclear fuel for SSES is estimated to be approximately $ 60 million over the next five years. Allegheny receives a portion of the total station output equal to its percentage ownership. The statement of operations reflects Allegheny's share of, fuel and other operating costs associated with the station.

NOTE D INVESTMENTS IN ASSOCIATED ORGANIZATIONS Investments in associated organizations consist primarily of National Rural Utili-ties Cooperative Finance Corporation (CFC) patronage capital, "Capital Term Certificates" and "Subordinate Term Certificates," and National Bank for Coopera-tives (CoBank) "C" stock and "E" stock. Certificates bear interest at 3% and 4% and begin maturing in 2014.

Allegheny is required to maintain these investments pursuant to certain loan and guarantee agreements.

NOTE E NOTES PAYABLE Allegheny has a short-term line of credit available with CFC of $ 21.4 million. There were no amounts outstanding at October 31, 1990 or 1989. The interest rate is generally at prime plus 1%. Restrictions are imposed under the line of credit arrangement including, among other things, maintenance of ratio requirements under existing long-term debt arrangements and limitation of total short-term indebtedness outstanding to an amount not to exceed the remaining unadvanced portion of certain existing REA long-term loan commitments ($ 43.0 million at October 31, 1990).

Notes payable at October 31, 1990 and 1989 consist of Pollution Control Revenue Bonds issued by an Industrial Development Authority on Allegheny's behalf. The bonds are subject to purchase on demand of the holder and remarketing on a "best efforts" basis. Sinking fund redemption is scheduled in varying amounts through 2014, and interest is due monthly at variable rates (5.5% to 7.1% for 1990 and 5.9%

to 8.0% for 1989). The bonds are convertible to a fixed interest rate and fixed term at Allegheny's option. $ 1.8 million of investments included in other investments at both October 31, 1990 and 1989 relate to a debt service reserve fund required under the bond indenture.

35

Notes to Financial Statements (continued)

NOTE F LONG-TERM DEBT Long-term debt consists principally of mortgage notes payable for electric utility plant to REA and to the United States of America acting through the Federal Financing Bank (FFB) and guaranteed by REA. Substantially all the assets of Allegheny are pledged as collateral. Long-term debt consists of the following:

October 31 1990 1989 (In Thousands)

Mortgage notes payable to FFB at interest rates varying from 7.338%

to 13.820% in 1990 and 7.329% to 13.820% in 1989, due in varying amounts through 2021 $ 493,860 $ 491,942 Mortgage loan payable to CFC, payable in various quarterly installments, including interest through January 2015.

Variable rates ranged from 9.125% to 9.75% in 1990 and 9.25% to 11.00% in 1989 $ 2,004 $ 2,033 Notes payable to CFC, payable in various quarterly installments, including interest through October 2019. Variable rates ranged from 9.125% to 9.75% in 1990 and 9.5% to 11.00% in 1989 $ 3,123 $ 693 5% mortgage notes payable to REA due in varying amounts through 2019 $ 5,719 $ 4,015 Other $ 20 $ 39

$ 504,726 $ 498,722 Less current portion 9,695 8,803

$ 495,031 $ 489,919 Allegheny has the option on FFB promissory note advances to elect (subject to REA approval) an interim maturity date of two years after the date of the advance. At the date of the advance or on the maturity of an interim advance, Allegheny may also designate that it desires a long-term maturity up to a maximum of 34 years from the end of the calendar year in which the note was issued. At October 31, 1990, Allegheny had $ 25.8 million of advances maturing within one year which it, intends to convert to long-term obligations, either by rolling them over for addi-tional two-year periods or extending them to facility life-time financing, in accor-dance with the mortgage agreement.

36

. ~'

~ ~

,

~

NOTE F (continued)

Aggregate maturities of long-term debt for the four years subsequent to October 31, 1991 are as follows (in thousands):

1992 $ 10,912 1993 11,661 1994 12,102 1995 12,496 The above maturity schedule reflects management's intent to convert FFB advances with interim maturity dates to long-term debt. Allegheny has used an interest rate it estimates to be an appropriate long-term rate, based on the October 31, 1990 interest rate, to compute the annual principal requirements.

Allegheny is required by mortgage covenants to maintain certain levels of interest coverage and annual debt service coverage. Allegheny was in compliance with such requirements at October 31, 1990.

During 1990 and 1989, Allegheny incurred interest costs of $ 43.0 million and $ 42.7 million, respectively. Interest paid, net of amounts capitalized, was $ 41.9 million and $ 41.7 million, respectively.

NOTE G INCOME TAXES At October 31, 1990, Allegheny had available nonmember net operating loss carryforwards of $ 16.9 million for financial reporting purposes and $ 158.5 million for tax reporting purposes expiring through 2005 and investment tax credit carryforwards of approximately $ 33.8 million for both financial and tax reporting purposes, expiring through 2003. Allegheny also had operating loss carryforwards attributable to member activities of $ 19.2 million for financial reporting purposes and $ 155;0 million for tax reporting purposes which may be carried forward indefinitely. Under the Tax Reform Act of 1986, the amount of investment tax credit allowable as a result of a carryforward must be reduced by 35%.

In 1983, Allegheny sold certain investment and energy tax credits and depreciation deductions pursuant to a safe harbor lease. The proceeds from the sale, including interest earned thereon, have been deferred and are being recognized over the term of the lease (30 years). The net proceeds and related interest were required by REA to be used to retire outstanding FFB debt.

Under the term of the safe harbor lease, Allegheny is contingently liable in varying amounts in the event the lessor's tax benefits are disallowed and in the event of certain other occurrences. The maximum amount for which Allegheny was contingently liable approximated $ 20 million at October 31, 1990. Payment of this contingent liabilityhas been guaranteed by CFC.

37

Notes to Financial Statements (continued)

NOTE H RELATED PARTY TRANSACTIONS Allegheny has an arrangement with an associated organization, Pennsylvania Rural Electric Association (PREA), under which PREA provides Allegheny with certain management, general, and administrative services on a cost reimbursement basis. Total costs for the services provided for the years ended Ocotober 31, 1990 and 1989 were $ 3.1 million and $ 2.6 million, respectively.

NOTE I COMMITMENTSAND CONTINGENCIES Allegheny and PP&L are members of certain insurance programs which provide coverage for property damage to members'uclear generating plants. Allegheny's portion of the facilities at SSES is insured against property damage losses up to

$ 218.5 million under these programs. Allegheny is also a member of an insurance program which provides coverage for the cost of replacement power during prolonged outages of nuclear units caused by certain specified conditions. Under the property and replacement power insurance programs, Allegheny could be assessed retrospective premiums in the event the insurers'osses exceed their reserves. The maximum amount Allegheny could be assessed under these pro-grams during the current policy year is $ .7 million.

Allegheny's public liabilityfor claims resulting fro'm a nuclear incident is currently limited to $780.7 million under provisions of the Price-Anderson Amendments Act of 1988 (Act), which extended the Price-Anderson Act to August 1, 2002. Allegheny is protected against this potential liabilityby a combination of commercial insur-ance and an industry retrospective assessment program.

In the event of a nuclear incident at any of the facilities owned by others and covered by'he Act, Allegheny could be assessed up to $ 12.6 million per incident, but not more than $2 million in a calendar year.

Allegheny is currently constructing a transmission facility which is estimated to cost a total of $ 2 million. Financing is being provided by REA ($ 1.4 million) and CFC ($ .6 million).

NOTE J SALE/LEASEBACKARRANGEMENT On June 30, 1988, Allegheny completed the sale and simultaneous leaseback of its

'ydroelectric generation facility at the Raystown Dam (the Facility). The Facility was sold to a trustee bank representing Ford Motor Credit Company (Ford) for $ 32 million in cash. Under terms of the arrangement, Allegheny is leasing the Facility Ford's trustee for an initial term of 30 years. Payments under the lease are due'rom in semiannual installments which commenced January 10, 1989. At the end 'of the 30-year term, Allegheny willhave the option to purchase the Facility for an am'ount equal to the Facility's fair market value.

38

NOTE J (continued)

Allegheny also has the option to renew the lease for a five-year fixed rate renewal and three fair market renewal periods, each of which may not be for a term of less than two years. Payments during the fixed rate renewal period are 30% of the average semiannual installments during the initial lease term. Allegheny willretain co-licensee status for the Facility throughout the term of the lease. The gain of $ 1.9 million related to the sale is being recognized over the lease term in the same proportion that the annual rental payments relate to total rental payments.

The payments by Allegheny under this lease were determined in part on the assumption that Ford willbe entitled to certain income tax benefits as a result of the sale and leaseback of the Facility. In the event that Ford were to lose all or any portion of such tax benefits, Allegheny would be required to indemnify Ford for the amount of the additional federal income tax payable by Ford as a result of any such loss.

The leaseback of the Facility is accounted for as an operating lease by Allegheny.

As of October 31, 1990, future minimum lease payments under this lease, which can vary based on the interest paid on the debt used by Ford to finance the transac-tion, are estimated as follows (in thousands):

1991 $ 1,932 1992 1,932 1993 2@61 1994 2361 1995 2@61 Thereafter 55,052 Total Minimum Lease Payments $ 65,999 The future minimum lease payments shown above are for the initial lease term and the five-year renewal period. These payments are based on an assumed interest rate of 8.8% and may fluctuate based on differences between the future interest rate and the assumed interest rate.

Rental expense for this lease totalled $ 2.1 million for the year ended October 31, 1990 and $ 2.0 million for the year ended October 31, 1989.

NOTE K CHANGE IN ACCOUNTING PRINCIPLE Effective November 1, 1989, Allegheny adopted Statement of Financial Accounting Standards No. 92, "Regulated Enterprises - Accounting for Phase-in Plans." Under Statement No. 92, a utility may capitalize on its balance sheet the costs deferred under a rate phase-in plan if the plan meets specific criteria including the require-ment that such costs are recovered within 10 years of the date the deferrals began.

Otherwise, the deferred costs must be charged to expense in the period incurred.

39

Notes to Financial Statements (continued)

NOTE K (continued)

Under the method of depreciation used by Allegheny for nuclear utility plant production assets prior to November 1, 1989, which was previously approved by REA, the amount of depreciation included in electric rates during the first 10 years of the related assets'ives was substantially less than the amount that would have been included using straight-line depreciation. Accordingly, this method of depre-ciation used for such assets was considered to be a phase-in plan under FASB Statement No. 92 that did not meet the 10-year recovery period established by FASB Statement No. 92.

In order to comply with FASB Statement No. 92, Allegheny amended its phase-in plan. Under the amended phase-in plan, which has received REA approval, depreciation of nuclear utility plant production assets is based one modified sinking fund method over a 10-year period commencing with 1990 and ending in 1999. The modified sinking fund method will result in the cumulative depreciation for the 10-year period being equal to straight-line depreciation over the same 10-year period. Commencing in the year 2000, the straight-line method willbe used by Allegheny for the remaining life of the assets. The net amount of costs deferred at October 31, 1990 under the phase-in plan amended to comply with FASB Statement No. 92 was $ 4.5 million.

Allegheny was also required to record a charge against income in 1990 for the cumulative effect of a change in accounting principle in the amount of $ 31.1 million representing the difference in depreciation for nuclear utility plant production assets used by Allegheny under its previous phase-in plan and the straight-line method of depreciation. This charge against income has been recorded as a defi-ciency in an unallocated equity account as of October 31, 1990, since the amount is not allocable to Allegheny's members. Beginning in 1990, all margins recognized by Allegheny are required to be used to reduce this deficiency. In addition, the current year, margin stabilization adjustment (see Note A) was calculated prior to the cumulative effect adjustment.

The adoption of FASB Statement No. 92 resulted in an increase in the 1990 margin before cumulative effect of change in accounting principle of $ 1.1 million. Pro forma amounts of operations for 1989, as if FASB Statement No. 92 would have been adopted in 1989, approximate the actual operating results reported for 1989.

40

H~ ERNsTdk VoUNc 0 300 Locust Court 0 Phone: 7172327575 212 Locust Street Harrisburg, Pennsylvania 17101 Report of Independent Auditors Board of Directors Allegheny Electric Cooperative, Inc.

We have audited the accompanying balance sheets of Allegheny. Electric Cooperative, Inc.

as of October 31, 1990 and 1989, and the related statements of operations, equities, and cash flows for the years then ended. These financial statements are the responsibility of manage-ment. Our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits in accordance with generally accepted auditing standards. Those "standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes exam-ining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, the financial statements referred to above present fairly, in all material respects, the financial position of Allegheny Electric Cooperative, Inc. at October 31, 1990 and 1989, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

As discussed in Note K to the financial statements, in 1990 Allegheny Electric Cooperative, Inc. adopted Financial Accounting Standards Board Statement No. 92, "Regulated Enterprises - Accounting for Phase-in Plans."

January 11, 1991

Summary of Qperations - Allegheny Member Systems Adams 8edford Central Claverack New Enterprise Northwestern EC, Inc. REC, Inc. EC, Inc. REC, Inc. REC, Inc. RECA, Inc.

David J. Ralph W. William E Albert J. John W. Harold Cowan Fischer Yerwilliger Wyda Ritchey Hines President President President President President President

SUMMARY

OF OPERATIONS Operating Revenue $ 26,035,688 $ 7@65+60 $ 18,170,446 $ 14,718,600 $ 2,958,010 $ 17,277,659 OPERATING EXPENSES Purchased power $ 17,159,192 $ 5,013,184 $ 11,180,716 $ 8W5,985 $ 2,244,871 $ 11,160,167 Operations & maintenance $ 4+62,783 $ 1538,676 $ 4,189~2 $ 3~,931 $ 785+20 $ 3+92,215 Depreciation $ 1,476,499 $ 336+11 $ 883,963 $ 962,027 $ 162,000 $ 837,901 Taxes $ 209,776 $ 63+15 $ 136557 $ 203,011 $ 22/83 $ 219,288 Interest $ 1+12,887 $ 332,473 $ 1,089,880 $ 848,874 $0 $ 819,171 Cost of electric service $ 25,221,136 $ 7,284,659 $ 17,480,498 $ 14+24,828 $ 3,214,774 $ 16,928,742 Operating margins $ 814/51 $ 80,700 $ 689,948 $ 293,772 ($256,763) $ 348,917 Non-operating margins & capital credits $ 661,161 $ 251,610 $ 505,697 $ 313,690 $ 51,909 $ 402,615 Net margins $ 1,475,712 $ 332+10 $ 1,195,645 $ 607,462 ($ 204,854) $ 751~2 ASSETS Total utility plant $ 46,893,466 $ 13/99,826 $ 33~9,864 $ 31,752,111 $ 3,187,689 $ 31,183,630 Less accumulated depredation $ 10,823+60 $ 4,260,435 $ 8,890/85 $ 7+74,973 $ 1,772+93 $ 8,802,884 Net utilityplant $ 36,069,605 $ 9,139+91 $ 24,659,279 $ 23,877,138 $ 1,415,096 $ 22380,745 Other property & investments $ 7/15@90 $ 2,281,104 $ 5@36,436 $ 4,086,846 $ 750,600 $ 5,766,719 Current & accrued assets $ 7,280,919 $ 2,255,977 $ 4,967,988 $ 1,020,060 $ 284,823 $ 2370555 Deferred debits $ 142,968 '$71,145 $ 37/87 $ 118+22 $0 $ 478,784 Total assets $ 51,008+82 $ 13,747,616 $ 35,001,290 $ 29,102/66 $ 2,450818 $ 30,996,804 LIABILITIES Margins & equities $ 19,117,760 $ 6~9,177 $ 14,150,087 $ 11,019,618 $ 2,271,780 $ 14,012,080 Long-term debt $ 29',754 $ 6,165,409 $ 18,678,850 $ 15g27+18 $0 $ 15303,106 Current & accrued liabilities $ 2,042@68 $ 756,011 $ 1,956/95 $ 2,197/24 $ 178,738 $ 1,678,152 Other credits & reserves $ 12,000 $ 277,019 $ 215,758 $ 58,106 $0 $ 3,467 Total liabilities $ 51,008,882 $ 13,747,616 $ 35,001,290 $ 29,102@66 $ 2,450+18 $ 30,996,804 OTHER STATISTICS Miles of line 2,435 1.133 2,911 2+78 323 2332 Consumers served 21383 7,628 21,719 14,869 2,866 16,074 Consumers per mile 8.8 6.7 7.5 6.3 8.9 6.9 Kwh sold per consumer 12,990 10,438 8,151 9,267 1'1,688 10,625 Mwh sales 279,055.8 79,621.6 177,038.4 137,7913 33,498.7 170,784.5 Annual revenue per consumer $ 1,212 $ 966 $ 837 $ 990 $ 1,032 $ 1,075 Plant investment per consumer $ 1,679 $ 1,198 $ 1,135 $ 1,606 $ 494 $ 1+92 Revenue per mile of line $ 10,692 $ 6500 $ 6,242 $ 6,189 $ 9,158 $ 7,409 42

Somerset Southwest Sullivan County Sussex Triton ty United Valley Warren REC, Inc. Central RECC REC, Inc. REC REC, Inc. EC, Inc. REC, Inc. EC, Inc.

Dalton B. Donald Wayne James L Alston A. James R. Harold E. Dave Walker Streams Gavitt Henderson Teeter Young Ritchey Turner President President President President President President President President TOTAL

$ 12,133,277 $ 20,146,011 $ 3,776,838 $ 12,083,769 $ 12,722,087 $ 13,086/57 $ 15+48+52 $ 5,1S3,249

$ 8/18,299 $ 1S,029,625 $ 2,438,903 $ 6393,898 $ 7@44,427 $ 7,757,247 $ 10,778,094 $ 3,123,740 $ 116,998+49

$ 1,934/51 $ 2498,095 $ 755~0 $ 2355,246 $ 3,146,990 $ 2,837,163 $ 2,911/19 $ 1,071,168 $ 36,433,779

$ 538,269 $ 865,788 $ 231/31 $ 705+14 $ 808,778 $ 867,776 $ 916~9 $ 293,684 $ 9,887@89

$ 133,629 $ 131,878 $ 36,436 $ 1,406,412 $ 135,909 $ 82,986 $ 140,036 $ 46,849 $ 2,968,964

$ 693,100 $ 1,019/32 $ 225,612 $ 757,234 $ 1,035,215 $ 1,166,724 $ 683,020 $ 146/23 $ 10@30@45

$ 11,817,848 $ 19,644,718 $ 3,688+22 $ 11,618,604 $ 12,471/19 $ 12,711,896 $ 15,429,218 $ 4,682,263 $ 176,618,826

$ 315,429 $ 501,293 $ 88/15 $ 465,165 $ 250,768 $ 374,961 $ 419333 $ 470,986 $ 4857,576

$ 443,145 $ 471,784 $ 102,136 $ 312,697 $ 341,857 $ 403,125 $ 496+98 $ 134/86 $ 4,892,610

$ 758874 $ 973,077 $ 190,651 $ 777+62 $ 592,625 $ 778,086 $ 915,931 $ 605/72 $ 9,750,186

$ 21458,449 $ 32+19/95 $ 8/63,183 $ 21,268,119 $ 31,827,143 $ 32,945,989 $ 33,122/04 $ 10,798,660 $ 352@69,926

$ 4,845,244 $ 5+75,046 $ 2/20,069 $ 4,734,210 $ 7,994/36 $ 8,737/91 $ 9,234,254 $ 3,627,498 $ 89,794,079

$ 16,713@05 $ 26,944~9 $ 5,743,113 $ 16+33,909 $ 23+32,607 $ 24,208,098 $ 23',950 $ 7,171,162 $ 262+75,848

$ 4,203@00 $ 6,173,098 $ 1,231,722 $ 2,683,247 $ 3,696,995 $ 4,488,936 $ 4,654,702 $ 1,608,688 $ 54 477 782

$ 4+31,858 $ 1+42,160 $ 461,625 $ 3~,134 $ 3,624,714 $ 2555,205 $ 3~9,123 $ 1,003,638 $ 38,892,779

$ 6,051 $ 59,404 $ 14,680 $ 167,010 ($ 15,012) $ 130,293 $ 22+27 $ 480,021 $ 1,713,579

$ 25,254,414 $ 35,019@11 $ 7,451,140 $ 22W8P00 $ 31,139/04 $ 31@82/32 $ 31,954,102 $ 10,263/08 $ 357,659,988

$ 10,644,913 $ 16/64,143 $2,839,467 $ 7+50,794 $ 11,188/87 $ 10,617,834 $ 17,180,687 $ 6584,833 $ 150,291,761

$ 13,479,889 $ 16,904,441 $ 4/21,764 $ 12,779,734 $ 19,109,667 $ 19,624+78 $ 12,462,001 $ 3,268,067 $ 187,761,578

$ 976,093 $ 1,471,081 $ 289,463 $ 2,434,727 $ 754,650 $ 1,139,848 $ 1,953588 $ 158,628 $ 17,987,266

$ 153/19 $ 79~6 $ 446 $ 123,045 $ 86,400 $ 272 $ 357+27 $ 251,980 $ 1,619@84

$ 25,254,414 $ 35,019,211 $ 7,451,140 $ 22,888300 $ 31,139304 $ 31382532 $ 31,954,102 $ 10,263508 $ 357,659,988 1/30 2,416 787 604 2~ 2,605 2356 1,009 25,953 10,936 19,269 4,881 9,734 '15,669 15,813 17,288 8,437 186,666 6.0 8.0 6.2 16.1 S.5 6.1 7.3 8.4 7.2 12,629 12,007 7/20 10,473 6/92 7,296 9,738 5,656 9,779 138,113.4 231@55.4 36,703.7 101,948.7 107,991.2 115/64.4 168@50.2 47,718.5 1,825@36.0

$ 1,109 $ 1,046 $ 774 $ 1,241 $ 812 $ 828 $ 917 $ 611 $ 972

$ 1/28 $ 1/98 $ 1,177 $ 1,699 $ 1+21 $ 1+31 $ 1,382 $ 850 $ 1,407

$ 6,630 $ 8$ 39 $ 4,798 $ 20,000 $ 4,489 $ 5,023 $ 6,727 $ S,108 $ 6,992 43

0 S