ML20009F287
| ML20009F287 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 07/21/1981 |
| From: | NEW ENGLAND POWER CO. |
| To: | |
| Shared Package | |
| ML20009F275 | List: |
| References | |
| NUDOCS 8107300249 | |
| Download: ML20009F287 (50) | |
Text
{{#Wiki_filter:,- O i New England Power Company O A Subsidiary of NEW ENGLAND ELECTRIC SYSTEM , i Annual Report 1980 O bkSDO OOO 3 nn .
1 NEW ENGLAND POWER COMPANY 25 RESEARCil DRIVE g WESTilOROUGil, MASSACilUSE'ITS 01581 DIRECTORS (As of Decemlwr 31, 1980) Ron L RT O. UIGen ow, Vice Presihntofthe Company and J Ast rs C. N esunTT, Via President-Finana ofthe Com-ofan affiliate pany and of Neu England Electric System , JoAN T. BoK, Via Chairman ofthe Company andNeu-i
'"* * ""' , "E""'" "I ' ""I'"I ""
England Eletric Systen S A %i U LL li UNTINGToN . Via PresidentanJAssistant Clerk "E""'"'" ~ "' *l '" "*I'" I"'"' ' ofthe Company and Vice Praident, Saretary and "
- General Counsd ofNeu England Eintric Syrem Prut). SetLnvrs, Via Prail<nt ofthe Coupany and Jons F. KAstow, President ofthe Company anJSeniur Senior Vice Presi&nt of Neu England Elatric Vice Presid<nt of Neu England Eletric System Sprem OFFICERS l (As of December 31, 1080)
Gus W. Nncuots, Chairman of the Company and EnwARn M. Kenin, Vice Praident of the Company Chairman and Presiknt ofNeu England Eintric EosAnu A. Ptust n rv, Via Presikntofthe Company and System of an affliate JoAN T. BoK, Via Chairman ofthe Company andNeu- PAvL). SuLt svAN, Vice Presiknt of the Comp.iny and England Elatric System 5,,,,, y;(, p,n;3,, ,j gcc y,g,,,j y,,,,,,, Jons F. KAsLow, President ofthe Company anJSenior y ,,,, Via Presidoit of Nar England Eletric Sysum j g ,, p ,, , _ , , , , ROBE RT O. BIGutow, Via PratJentofthe Company and
,,,y ,,, o, g,u . g,g ,,, y, ,,,, 5),,,,
y of an affiliate FR En c a nc E. G R E E N >t AN , Via PrestJe nt ofthe Company DoNALu E. Rose, Treasurer of the Company and of RussetL A.11oLouN, Vice Presiknt ofthe Company and Nne EngL:nd Elurric System President of an affliate ALYRVD D. IloCsToN, Assistant TreasureroftheCompany SAM U E L I I UNTn NGToN , Via PresidentanJh ssistJnt Clerk an YKe Presihnt and Treasurer of an affliate ofthe Company and Via Presi&nt, Saretary and Rouu RT KnNG Wvt re, Clerk ofthe Company andofan General Counsd of Nne England Elatric System affliate Transfer Agent and Ditihnd Paying Agent of Preferred Stuk THE FIRsr N ATioN AL BAN K OF Boston . Boston, Massachusetts Registrar of PreferredSamk S RATE STREET B AN K ANnTausT CohtPANY . Boston, Massachusetts 9
'This report is not to be considered an offer to sell or' ,
, buy or solicitation of an offer to sell or buy any security. ,
NEW ENGLAND POWER COMPANY New England Power Company, a subsidiary of New England Electric System, is a hiassaAasetts corporation and is quali6ed to do business in hiassachusetts, New Hampshire, Rhode Island, Connecticut, hiaine and Vermont. The Company is subject, for certain purposes, to the jurisdiction of the regulatory ' commissions of these six states, the Securities and Exchange Commission and the Federal Energy Regulatory Commission. The Company's business is principally that ofgenerating, purchasing, transmitting and selling electric energy in wholesale quantities to other electric utilities, principally its af61iates, Granite State Electric Company, Alassachusetts Electric Company and The Narragansett Electric Company. In 19ho,91 percent of the Company's revenue from the sale of electricity was derived from sales for resale to af61iated companies and 9 percent h 2 sales for resale to municipal and other utilities.
, The Company, through its own generating units, entitlements and purchased power contracts has a total capability of 1,427,000 kilowatts. Of this total capability, approximately 8 percent is nuclear, 25 percent hydro and pumped hydro, 31 percent oil-6 red and 36 percent convertible between coal and oil.
The Compar v is in the process of a large coal conversion project. Conversion of 1,150,000 kilowatts of i generating capacity is scheduled for completion in 1981. The Company participates as a part owner with ownership interests of between 10 percent and 12 percent, in nuclear generating units scheduled to be coropleted starting in 1983. New England Power Company owns 30 percent of the stock of Yankee Atomic Electric Company, which owns a 175,800 kilowatt (net capability) nuclear generating plant,15 percent of the stock of Con-necticut Yankee Atomic Power Company, which owns a 580,000 kilowatt (net capability) nuclear plant, 20 percent of the stock of Vermont Yankee Nuclear Power Corporation, which owns a 528,000 kilowatt (net capability) nuclear plant, and 20 percent of the stock of hiaine Yankee Atomic Power Company, which owns a 830,000 kilowatt (net capability) nuclear plant. The Company is a member of the New England Power Pool which provides for the coordination of the planning and operation of the generation and transmission facilities ofits members, who currently represent 99 percent of New England's generating capacity and also provides for a region-wide central dispatch of generation. REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS COOPERS & LYBRAND NEw ENGt.AND POWER COMPANY { WESTBOROUGH, h!AsSACHUsETTS We have examined the balance sheets of New England Power Company as at December 31,1980 and 1979 and the related statements ofincome and retained earnings aad changes in 6nancial position for each of the three years in the period ended December 31,1930. Our examinations were made in accordance with genem!!y accepted auditing standards and, accordingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the ci cumstances. In our opinion, the 6nancial statements referred to above (pages i to 12) present fairly the 6nancial position of New England Power Company at December 31,1980 and W ed the results ofits operations and changes in its 6nancial position for each of the three years in L t y < d uJed December 31,1980, in conformity with generally accepted accounting principles appH:, er 4 mont basis. Boston, hiassachusetts January 21, 1581 COOPLO & I4YBRAND 3 L___.
~ NEW ENGLAND POWER COMPANY UdldNCe Sheets onemt<< 5 n, 1980 1979 ASSETS (In 7 b u=Jo Utility plant, at original cost (Note A) $ 913,607 $ 939,418 Less accumulated provisions for depreciation 262.106 243,789 681,501 695,659 Construction work in progress (Note J) 369,676 237,406 Net utility plant 1,051,177 93T ,065 Invettments: Nuclear power companies, at equity (Note C) 40,001 38,819 Nonutility property and other investments, at cost 6,671 1,200 , Total investments 46,672 40,019 Current assets: Cash 2,153 6,874 , Accounts receivable, principally from sales of electric energy: Affiliated companies 110,501 88,261 Others 23,651 13,074 Fuel, materials and supplies, at average cost (Note J) 66,728 53,428 Prepaid expenses and temporary deposits 1,107 245 Total currcnt assets 201,116 161,882 Deferred charges and other assets 5,369 4,797 Unamortized property losses (Note F) 30,726 33 068
$ 1,338,090 $ 1,172,831 CAPITAll7ATION AND LIABILITIES Capitalization:
Common stock, par value $20 per share, authorized and outstandmg 6,449,896 shares $ 128,998 $ 128,998 Premium on capital stocks t 87,192 87,207 0 Other paid-in capital (Note H) I18,000 128,000 Retained earnings (Note 1) 30,641 27,747 . Total common equity 394,831 371,952 Cumulative preferred stock (Note E) 108,768 111,028 ) long-term debt (Note G) 476.349 462,922 Total capitalization 979,948 915,902 Current liabilities: Long-term debt due within one year (Note G) 12,000 Notes payable - commecial paper (Note D) 90,855 10,500 Accounts payable (including $3,083,000 and $9,782,000 to af61iates)(Note J) . 107,103 64,880 Accrued liabilities: Taxes 1,607 1,465 Interest 8,357 5,854 Payroll and other expenses 818 954 - Tota' current liabilities 220,740 83,653 Other reserves 46,700 Deferred federal income taxes (Note B) 94,954 62,472 Unamortized investrr.ent tax credits (Note B) 42,448 34,101 Cornmitments ar d contingencies (Notes J and K)
$ 1,338,090 $ 1,172,831 ,
The accompanying r.otes are an integral part of these fmancial statements. 4 l 1
l p NEW ENGLAND POWER COMPANY G Statements ofIncome and Retained Earnings Year Ended December 31, 1980 1979 1978 tie Tlxwunds) Operating revenue . $776,294 $608,214 $504,749 Operating expenses: Fuel for generation . 381,761 289,656 232,955 Purchased electric energy: Ibssil and interchange . . 103,010 59,387 22,179 Nuclear entitlements 51,762 42,335 36,497 Other operation . . . 46,086 44,053 40,297 Maintenance . . . 25,754 24,921 17.537 Depreciation and amortization (Notes A and F) 32,700 28,700 27,500 Texes, other than federal income (Note L) . 30,023 29,651 31,422 I , Federal income taxes (Note B) . 32,117 26,156 30,875 Total operating expenses . 703,213 544,859 439,262 Operating income . 73,081 63,355 65,487
- l. Other income:
Allowance for equity funds used during construction (Note A) 12,819 12,501 8,885 j Equity in income of nuclear power companies (Note C) . 3,916 3,920 3,635 j Other income - net, including related taxes (Note G) 2,831 773 105 Operating and other income . . . 92,647 80,549 78,112 Interest: Interest on long-term debt . . . . 36,418 35,746 33,440 V Other interest . . . . . . . . 11,244 4,123 4,680 Allowance for borrowed fur s used during construction - credit (Note A) . (12,944) (8,821) (7,622) Total interest . . 34,719 31,048 30,498 l Net income . . . . 57,929 49,501 47,614 4 , Retained earnings at beginning of year . 27,747 26,909 22,435 l Reclassification of amortization reserve . . 1,976 Deduct: 85,676 76,410 72,025 Cash dividends declared: Cumulative preferred stock (Note E) . 8,273 8,351 8,351 Common stock, $7.25, $6.25 and $5.70 per share, respectively 46,762 40,312 36,765
- , Retained earnings at end of year (Note I) . . . $ 30,641 $ 27,747 $ 26,909 l
The accompanying notes are an integral part of these financial statements. I i l 1 c 5 e
, . - , - - - - , , - , . - , , , - . - - - ~ -
NEW ENGLAND POWER COMPANY Statements of Changes in Financial Position Year Ended thernber 31, 1980 1979 1978 IIe 7%un.in Sources of Funds From operations: Net in. "ne $ 57,929 $ 49,501 $ 47,614 Derr- on and amortization 32,700 28,700 27,500 Refur (46,700) 9,200 13,400 Deferred rederal income taxes 32,482 15,245 2,118 . Investment tax credits - net 9,665 7,500 6,227 Allowance for funds used during construction (25,763) (21.322) (16,507) 60,313 88,824 80,352 , Dividends on common stock (46,762) (40,312) (36,765) Dividends on preferred stock , (8,273) (8,351) (8,351) Total funds from operations 5,278 4 0,1(31 35,236 From 6nancing transactions: Capital contributions from parent company 20,000 40,000 30,000 Long-term debt issues 26,174 50,000 Long-term debt retirements (7,400) (13,400) Preferred stock retirements (1,250) Changes in short-term debt 80,355 7,000 (40,825) Total funds from fmancing transactions 125,279 39,600 25,775 Total sources of funds 130,557 79,761 61,011 Application of Funds Construction expenditures, excluding allowance for funds used during construction 124,703 65,563 61,424
$ 5,854 $ 14,198 $ (413)
Increase /(Decrease) in Working Capital and Other Items Cash $ (4,721) $ (676) $ 191 Accounts receivable 32,823 7,699 565 Fuel, materials and supplies 13,300 4,458 8,594 Other current assets 862 48 (336) Accounts payable . (42,223) (14,520) (9,477) Other current liabilities (2,509) 15,810 (844) Other items 8,322 1,379 894
$ 5,854 $ 14,198 $ (413) .
The accompanying notes are an integral part of these 6nancial statements. l 6 O
,Q NEW ENGLAND POWER COMPANY G Notes to Financial Statements Nort A - Signi6 cant Accounting Policies
- 1. System of Accounts:
The accounts of the Company are maintained in accordance with the Uniform System of Accounts pre-scribed by regulatory bodies having jurisdiction.
- 2. Plant:
The Company capitalizes, as part of construction costs, an item called allowance for funds used during construction (AFDC), which represents the composite interest and equity costs of capital funds used to 6 nance construction. AFDC is recognized as a cost of " Utility plant" Accordingly, AFDC is capitalized in the same manner as construction labor and material costs, with offsetting credits to "Other income" and " Inter:st". This is in accordance with an established regulatory rate-making practice under which a utility is permitted a return on, and the recovery of these capital costs through their ultimate inclusion in the rate base and in the provision for depreciation. The composite rates approximate the pre-tax cost of funds (10.20 percent in 1980,9.84 percent in 1979 and 9.24 percent in 1978). Tax bene 6ts on the allowance for borrowed funds used during construction have been normalized and charged to expense (see Note 10. Costs of current repairs and minor replacements of plants and properties are charged to maintenance expense accounts e incurred. Plant retired or otherwise disposed of, together with costs of removal less salvage, is charged to accumulated provisions for depreciation. 3 Depreciation: n
) Depreciation is provided annually on a straight-line basis in amounts at least suf6cient to amortize the (O
undepreciated cost of depreciable properties over their estimated remaining service lives. In the opinion of management, the accumulated provisions for depreciation and the provision for depre-ciation shown in the accompanying 6nancial statements are adequate for the purpose of depreciating the plants and properties over their estimated remaining service lives and the plants and properties are kept in g(xxl operating condition to render adequatt and dependable service to customers. The prosisions for depreciation as a percentage of weighted average depreciable property including hydro and thermal electric generating facilities and transmission facilities were 3.0 percent in 1980, 2.97 percent in 1979 and 2.94 percent in 1978.
- 4. Retirement Plans:
The Company participates with other subsidiaries of New England Electric System (NEES) in funded plans which are noncontributory and provide retirement bene 6ts for substantially all employees of the Company. Current service costs are funded annually; prior service costs are being funded over i~ l a 20 year period. Total pension expense, including amortization of prior service costs, was
$1,296,000 in 1980 and $1,704,000 in 1979 and 1978.
In 1980, a restructuring of pension fund assets was accomplished and a large portion of fund assets were invested in 6xed term guaranteed rate investments. This resulted in an increase, from 5.5 percent to 8.5 percent, in the estimated return on fund assets. At the same time, the assumptions for salary increases and Social Security escalation were also increased. The net effect of these changes reduced pension contributions in 1980. A comparison of the market value of pension fund assets with the actuarial present value of accumulated bene 6ts cannot be presented separardy for the Company as the Company participates in the plus with other subsidiaries of NEES.
\j 7
NEW ENGLAND POWER COMPANY Notes to Financial Statements - Continued NOTE B - Rderal Income Taxes The Company and other subsidiaries participate with NEES in filing consolidated federal income tax returns. Federal income tax returns have been examined and reporr d on by the Internal Revenue Service through 1976. Rderal income taxes consist of the following components: 1980 1979 1978 tinTkauehI Current federal income taxes $(10,030) $ 3,411 $22,530 " Deferred federal income taxes 32,482 15,245 2,118 investment tax credits - net 9,665 7,500 6.227 Rderal income taxes charged to operations 32,117 26,156 30,875 - Rderal income taxes charged to "Other income - net" 2,058 611 482 Total federal income tax expense 5 34,175 $26,767 $ 31,357 investment tax credits are deferred and amortized over the estimated service lives of the plant and equip-ment giving rise to the credits. Investment tax credits- net principally reflects reductions in current federal income taxes attributable to such investment tax credits which have been deferred. The Company, with regulatory approval, has adopted comprehensive interperiod tax allocation (nor-malization). The following table details the components of deferred federal income taxes. 1980 1979 1978 tie Tlx>uunh) Allowance for borrowed funds used during construction $ 5,538' $ 2,198* $ 3,659 Excess tax depreciation 5,559 6,350 6,454 Property losses (Note F) 2,250 11,972 Construction costs and other 1,708 1,271 818 Reversal of prior years' tax deferrals (4,805) (2,314) (2,381) Refunds 22,232 (4,232) (6,432)
$ 32,482 $ 15,245 $ 2,118
- Excludes $416,000 in 1980 and $1,859,000 in 1979 transferred to property losses.
Total federal income taxes differ from the amounts computed by applying the statutory tax rate to income before taxes. The reasons for the differences are as follows: . 1980 1979 1978 IIe TlxanaehI
~
Computed tax at statutory rates $42,368 $35,083 $37,906 Reductions in tax resulting from: Allowance for equity funds used during construction (5,897) (5,75I) (4,265) All other differences (2,296) (2,565) (2,284) Rderal income taxes $34,375 $26,767 $31,357 Effective federal income tax rate 37.19 35.1 % 39.7 % 8
NEW ENGLAND POWER COMPANY Notes to Financial Statements - Continued NOTE C - Investments in Nuclear Power Companies
- A summary of combined results of operations, assets and liabilities of the nuclear power companies in
- which the Company has investments is as follows
1980 1979 197H tin 1Xunds) Operating revenue . $275,919 $228,532 $ 191,074 Net income . . . . .
$ 19,328 $ 21,201 $ 18,263 Company's equity in net income . . . $ 3,916 $ 3,920 $ 3,635
,l* 1 Plant . . , $691,672 $656,783 . $620,639 j Other assets . . . 63,033 63,595 44,232 j,. Liabilities and debt . . . . . (560,712) (523,661) (471,920) Net assets . , , $ 196,993 $ 196,717 $ 192.951 Company's equity in net assets . $ 40,001 . $ 38,819 $ 38,159 j . At December 31,1980, $5,068,000 of undistributed earnings of the nuclear power companies were , included in the Company's retained earnings.
- NOTE D - Short-Term Borrowing Arrangements The Company has lines of creilit totalin; $88,500,000 with a number of banks. There are no formal compensating balance arrangements, although operating balances maintained by the Company pro-2 vide compensation for . ertain lines of credit and fees are paid in lieu of compensating balances on j other lines of credit.
' " NOTE E - Cumulative Preferred Stock
- A summary of cumulative preferred stock at December 31,1980 and 1979 is as follows
Current i gg, Shares Outstanding Amount cig Value 1980 1979 1980 1979 Price ile Thaundi1 6.00 % $100 80,140 .80,140 $ 8,014 $ 8 014 (a) , 4.56% Series 100 100,000 100,000 10,000 10,000 $ 101.08 4.60% Series 100 80,140 80,140 8,014 8,014 101.00 t 4.64% Series 100 100,000 100,000 10,000 10,000 102.56 6.08% Series 100 100,000 100,000 10,000 10,000 102.84 [ 7.24% Series 100 -150,000 150,000 15,000 15,000 106.68 8.40% Series 100 150,000 150,000 15,000 15,000 108.12
- ~ 8.68% Series 100 100,000 100,000 10,000 10,000 105.62 l 11.04% Series (less '25 950,000 1,000,000 23,750 25,000 29.05(b)
} shares held at cost
. for sinking (und) (39,300,,) (1010)
Total . . I,770,9:n) 1,860,280 $108,76H(c) $111,028(c) j (a) Noncallable.
- (b) On September 1 of each year the Company is required to retire 50,000 shares to satisfy a sinking
' fund obligation. (c) Annual dividend requirement $8,105,000 in 1980 and $8,351,000 in 1979, t i A
. 9 i
NEW ENGl.AND POWER COMPANY Notes to Financid Statements - Continued Non: F - Property Insses in 1975 the Company cancelled plans to build a new oil-fired generating unit and in December 1979 cancelled plans to build two nuclear generating units Commencing January 1,1976 and June 1, 1980 respectively, the Company began amortiza.mn of the resulting losses of approximately
$ 13,000,000 ($ 7,000,000 af ter tax) and $28,00( .000 ($ 17,000,000 after tax) res[tctively, over five-year periods. Depreciation and amortization expense includes $6,100,000 in 1980 and
$ 2,600,000 in each of the years 1979 and 1978 relating to such amortization. The Company is recovering these costs through rates.
On December 31,1980, a nonaf61iate announced cancellation of plans for two nuclear generating units , in Alontague, Alassachusetts. The Company had expended approximately $6,000,000 as a part owner which amount is included in the balance sheet under the caption " Unamortized property losses". The Company will request regulatory approval to amortize and recover any loss through , rates. Non G - long-term Debt A summary oflong-term debt is as follows: Amount December 31,
' 80 1979 Ile 76aunda First Mortgage Bonds Series D, 2%9, due Ibbruary 1,1981 $ 12,000 ." 12,000 Series E, 3 %;, due June I,1982 5,000 5,000 Series F, 3 %9, due January 1,1985 25,000 25,000 Series G, -l%9, due February 1,1987 10,000 10,000 Series H, 4'7, due June 1,1988 10,000 10,000 Series I, Wu9, due November 1,1991 20,000 20,000 3eries J, i%'i, due December 1,19 2 12,000 12,000 Series K, 4 %9, duc November 1,1993 10,000 10,000 Series I, 6%9, due December 1,1996 10,000 10,000 Series M, 6%9, due October 1,1997 15,000 15,000 Series N, 7 %9, due July 1,1998 20,000 20,000 Series 0, 7%9, due December 1,1998 20,000 20,000 Series P, 8%9, due September 1,1999 15,000 15,000 Seri R, 7%7, due July 1, 200' '5,000 25,000 Series S, 8%9, due August 1,2003 10,000 40,000 Series T, HW4, due December I, 2003 40,000 40,000 Series U,10%9, due March 1, 2005 72,800 72,800
~
General and Refunding Mortgage Bonds Series A, 8%9, due January 1, 2007 50,000 50,000 Series B, 9%% , due July 1, 2008 50,000 50,000 Series C, 9%9, due March 15, 1983 90,(M0 Irss furuls held by trustee (6 3,8 ?6) 48).974 461,800 Unamortized premiums and discounts 375 1,122
%tal long-term debt (annual interest requirement $38,055,000 and $35,568,000) 488,349 462,922 less amount due within one year 12,000 long-term debt $476,349 $462,922 10
4 1 i 1 NEW ENGLAND POWER COMPANY O* Notes to Financial Statements - Continued NOTE G - long term Dcht (Continued) The Company issued $90,000,000 of Series C general and refunding mortgage bonds in March 1980 to secure pollution control revenue bonds issued by the Massachusetts Industrial Finance Agency. At December 31,1980, $63,826,000 of the proceeds from the issue were held by a trustee in a I construction fund to be disbursed as quali6ed construction costs are incurred by the Company Interest income is earned on the proceeds held by the trustee. This income, net of related Series C bond interest expense, is included in the income statement under the caption "Other income - l Det" )* Substantially all of the properties and franchises of the Company are subject to the lien of the indentures under which 6rst mortgage bonds and general and refunding mortgage bonds have been issued. Pursuant to the provisions of the indentures, relating to the 6rst mortgage bonds and general and re- !* funding mortgage bonds, the Company may elect to satisfy its annual sinking fund obligations of
$4,570,000 accruing on July 1,1981, $4,520,000 in each of the years 1982,1983 and 1984 and
$4,270,000 in 1985 in cash, bonds, or by evidencing to the trustee additional property in amounts not less than $7,617,000 in 1981 and $7,533,000 in each of the years 1982,1983 and 1984, and
$7,117,000 in 1985.
NOTE H -Other Paid In Capital in 1980,1979 and 1978 New England Electric System, the parent company, made capital contributions of $20,000,000, $40,000,000 and $30,000,000, respectively, to the Company which were credited to other paid-in opital. O NOTE I - Restrictions on Retained Earnings Available for Dividends on Common Stock Pursuant to the provisions of the Articles of Organization and the By-Laws relating to the Dividend Series Preferred Stock and the Cumulative Preferred Stock, certain restrictions on payment of div-idends on the common stock would come into effect if the " junior stock equity" were, or by reason f i of payment of such dividends became, less than 25 percent of" total capitalization." However, the junior stock equity at ikcember 31,1980 was 40 percent of total capitalization and, accordingly, none of the Company's retained earnings at December 31,1980 was restricted as to dividends on common stock under the foregoing provisions. Pursuant to restrictions contained in the supplemental indentures relating to 6rst mortgage bonds and i the indentures relating to general and refunding mortgage bonds, none of the Company's retained [ earnings at December 31,1980 was restricted as to dividends on common stock. NOTE J - Commitments and Continghies l The Company's construction expenditures, excluding AFDC, are estimated to be $ 168,000,000 in 1981.
- - At December 31,1980, substantial commitments had been made related to this construction pro-gram.
7 l Under the Company's current arrangements for fuel supply, certain of its fuel coraracts are assigned to I* a nonaf61iate which purchases fuel under these contracts and in the open market, holds the fuel in inventory, as owner, and sells the fuel to the Company at the time of burn at prices redecting its cost of the fuel. In addition, the Cornpany pays monthly charges to cover the nonaf61iate's services. The agreement is terminable on three months notice. Included in fuel, materials and supplies and in accounts payable is $37,215,000 representing fuel inventory held for the Company under the agreement. O v 11
NEW ENGLAND POWER COMPANY Notes to Financial Statements - Continued NorE J - Commitments and Contingencies (Continued) Agreements have been entered into with other New England utilities, as joint owner, for the construction of several nuclear generating units. Commitments in these units as of December 31,1980 are as follows: Lead Estimated ou ner s M *h'" C dP'"' ? Company Addinonal rural estimated expendi- amounts Company dare of Company tures to committed completed Unir 12xation operanon Toral portion dateta) to dare(b) cost (In Milln>ns) iln Melhons) (In Milbons) Seabrook i N. I1. 1983 1,150 115
$129 $18 $363 Seabrook 2 N.ll. 1985 1,150 115 hiillstone 3 Conn. 1986 1,150 140 112 12 381 Pilgrim 2 hlass. 1987 1,150 128 42 8 253
$283 548 $997
==
(a) included in construction work in progress (b) Commitments to manufacturers, contractors, and others The Company, in common with other utilities, is subject to current and future regulations relating to safety and environmental protection. This regulatory process may result in the modi 6 cation of operating or planned facilities, and/or rekication of planned facilities to different sites, and/or delay in tonstruction of facilities, and/or require cancellation ofcertain facilities, any of which could result in increased costs to the utility and its customers. NOTE K - Litigation The Company is a defendant in a federal antitrust suit 61ed in 1974 by the town of Norwood, Alassa-chusetts, seeking treble damages in the amount of $ 15,000,000 and attorneys' fees. Norwood had originally sued the Company and another defendant, but the other defendant settled the antitrust action and other rate matters with Norwood in 1980. Norwood's antitrust claims against the other defendant included issues not present in Norwood's claims against the Company. The Company has 61ed an answer to the complaint denying any violations of the antitrust laws and raising affirmative defenses. The parties are currently engaged in pre-trial discovery. No trial date has been scheduled. NOTE L- Supplementary Income Statement Information Advertising expenses and rents were not material and there were no royalties paid. Research and devel-opment costs charged to expense were $2,891,000 in 1980, $2,883,000 in 1979 and $2,796,000 in 1978. Taxes, other than federal income taxes, charged to operating expenses are set forth by - classes as follows; 19H0 1979 1978 . tle ThounJO h!unicipal property taxes $27,462 $26,038 $26,082 State franchise taxes (based on income) 772 1,901 4,050 , lideral and state payroll and other taxes 1,789 1,712 1,290
$ 30.02 3 $29,651 $ 31,422 New England Power Service Comp ny, an af61iated service company operating pursuant to the provisions of Section 13 of the Public Utility Holding Company Act of 1935, furnished services to the Company at the cost of such servkes. '. aese costs amounted to $25,505,000, $22,878,000 and $22,346,000, including capitalized construction costs of $9,553,000, $6,179,000 and $9,253,000 for each of the years 1980,1979 and 1978, respectively.
12
l n NEW ENGLAND POWER COMPANY G Supplementary Information on the Estimated Impact o[lnfation (unauditel) The following information depicts the impact of inflation on the Company's income and assets. This material should be treated with great caution as no method yet devised does this job clearly and simply. Rather, inlation information is still in the development stage. The numbers in the following tables have been prepared under the guidelines established by Financial Accounting l Standards Board Statement No. 33. This standard requires two separate approaches to measuring the impact ofintlation, the " constant dollar" approach and the " current cost" approach. The " constant dollar" approach uses the Consumer Price index (CPI) to adjust the historical 6gures actually recorded on a company's books to reflect the effects of general intlation. The " current cost" approach attempts to address the impact of specific inflation on an industry, and for this purpose our historical 6gures have been adjusted by using the llandy-Whitman Index of Public Utility Construction Costs.
- Put another way, both approaches attempt to show our 6gures as if we had built all of our generating stations, transmission lines, etc at 1980 costs, but they get there by slightly different routes.
There are obviously weaknesses in both of these approaches, particularly as regards regulated companies. However, these weaknesses should not detract from the conclusion pointed out by both approaches: intlation has reduced the value of the Company's earnings. In Table 1, four adjustments are shown. These adjustments are explained below. ADJUSTMENT l. DEPRECIATION EXPENSE An adjustment is made to historical depreciation expense to show the larger amount we would need to expense in 1980, if the cost of our plant and equipment was adjusted to show 1980 inflated values. These adjusted depreciation expense numbers were determined by applying the Company's depreciation rates to the 1980 " constant dollar" and the " current cost" values calculated for our depreciable plant and (j equipment. Income tax expense has not been adjusted because only historical depreciation is arently deductible for tax purposes. ADJUSTMENT 2. MONETARY ASSETS AND LIABILITIES Monetary assets (cash and accounts receivables for example) and monetary liabilities (such as our obli-gations to repay money we have borrowed) are adjusted for inflation. The former lose value due to the erosion of their purchasing power. The latter gain in value as these obligations will be paid offin cheaper dollars (doPars of less value). The Company has more monetary liabilities than monetary assets, which resulted in a net gain in purchasing power in 1980. ADJUSTMENT 3. GENERAL vs. SPECIFIC INFLATION The general inf3ation rate for 1980, as measured by the CPI, was higher than the speci6c inflation rate that impacted our plant and equipment. Therefore, the increase in value of our plant and equipment during the year was $84 millica less than it would have been had tne value increased at the general inflation rate. This amount is shown as an adjustment under the " current cost" approach. ADJUSTMENT 4. REGULATORY IMPACT The 6nal adjustment results from the fact that our regulated industry is only allowed to recover an amount that is a function of the historical cost of our investments in p; ant and cquipment. This recovery over time, which may be viewed as a stream of revenues, is therefore consHered to be a monetary asset. And, because monetary assets lose value during periods of inflation, this r.;justment is required. The sum of adjustments 1, 3, and 4 approxirrares the impact of intiation on the value of the plant and equipment of our regulated Company. 77 13
NEW ENGLAND POWER COMPANY TABLE 1. STATEMENT OF CONSOLIDATED INCOME ADJUSTED FOR INFLATION Con tant dollar Current cost Year ended Detember 31,19Mo (mdlions of dollars) appn a h appromh Net income - as shown on the books $ 58 $ 58 ADJUSTMENT l. DEPRECIATION EXPENSE (32) (45) Adjusted net income for 1980 $ 26' $ 13 ADJUSTMENT 2. MONETARY ASSETS AND LIABILITIES $ 75 $ 75 ADJUSTMENT 3. GENERAL vs SPECIFIC INFLATION" $(84) ADJUSTMENT 4. REGUI ATORY !MPACT $(84) $ 13 If adjusted net income were further adjusted for the regulatory impact shown in Adjustment 4, the resu't would i come a net loss of $58 million under the constant dollar approach. 5
" At December 31, 1980, the current cost of utility pimt and equipment was about $1,991 million while the net historical cost reco vrable through depreciation was about $1,05 I million.
The following table shows selected fmanci.il data adjusted for the effects of in8ation. This data is shown in millions of average 1983 dollars. Some of this data was derived from Table 1 presented above. TABLE 2. FIVE YEAR COMPARISON OF SELECTED SUPPLEMENTARY FINANCIAL DATA ADJUSTLD FOR El#FECTS OF iN/LATION Year ended December 31, 1980 1979 1978 1977 1976 Operating revenue excluding fuel recovery $256 $283 $306 $323 $339 Fuel recovery revenue 520 407 332 382 335 Total operating revenue $776 $690 $638 $705 $674 HISTORICAL COST INFORMATION ADJUSTED FOR f,fu *FRAL INFLATION (CONSTANT DOI.I Alt) income (ecLJing Adjustment 4 Regulatory 1 impact) $ 26 $ 28 HISTORICAL CO3T INFORMATION ADJUSTED FOR grCIFIC PRICE INCPEASES (CURRENT COST) Income (excluding Adjastment 4 Regulatory impact) $ 13 $ 13 Excess of increase in general price level over increase in specific prices after adjustment for impact of regulation (Adjustment 3 plus Adjustment 4) $ 71 $ 88 - GENERAL INFORMATION Net assets at historical ccst at year end $377 $399 Net gain from inHation adjusted monetary assets and liabilities $ 75 $ 87 Average Consumer Price Index 246 3 217.4 195.4 181.5 170.5 14
l NEW ENGLAND POWER COMPANY Operating Statistics Year Ended Ikember 31. 1980 1979 1978 1977 g SOURCES OF ENERGY (TitOUsANDs or Kwit): Net Generation - Thermal 11,833,763 11,631,788 12,765,597 11,152,702 11,065,277 N t Generation - Conventional Hydro 1,181,580 1,122,315 1,346,073 1,596,709 1,789,011 Generation - Pumped Storage 369,038 331,575 354,718 227,003 259,107 Nuclear Entitlements 1,947,488 2,409,483 2,603,776 2,458,568 2,631,962 Purchased Energy from Nonaffiliates 2,128,141 2,011,926 903,810 1,829,260 1,652,791
. Energy for Pumping (529,478) (476,053) (506,933) (322,31I) (367,195)
Total Generated and Purchased 17,230,532 17,361,034 17,167,041 16,941,931 17,030,953 losses, Company Use, etc, 596,173 707,996 797,996 709,328 664,6W e Total Energy Sold 16,634,359 16,65 3,0Y; 16,669,015 16.232,603 16,366,314 SALES OF ENERoy (TitOUSANDS OF Kwll): Resale: Af61iated Companies 15,987,486 15,801,903 15,479,356 15,076,143 14,944,016 1.ess - Generation by e. ated Com-pany (A) (949,023) (582,')9 3) (552,800) (558,002) (500,327) Net Sales to Af61iated Companies 15,038,463 15,218,910 14,926,556 14,518,141 14,443,689 Other Utilities 267,616 142,948 279,016 279,834 356,701 ) 1,290,037 1,251,5d 3 1,426,513 1,375.867 1,479,582 / Municipals Total Sales for Resale 16,596,116 16,616,141 16,632,085 16,173,812 16,279,972 Ultimate Customers 38,243 36,597 36,960 58,761 86,342 Total Energy Sold 16,631,359 16,653,038 16,669,045 16,232 f,'E ,,;oo,314 OrERATING REVENUE (IN TilOUSANI S): Revenue from electric sales Resale: Affiliated Companies $768,275 $599,325 $498,859 $502,584 $444,730 1.ess - G and T credits (A) (71,306) (45,431) (40,601) (40,416) (37,028) Net sales to Affiliated Companies 696,969 553,894 458,258 462,168 407,702 Other Utilities 12,252 5,107 7,256 13,226 18,895 Municipais 56,773 44,948 41,471 44,081 40,579 Total Revenue from Sales for Resale 765,rja 603,949 506,985 519,475 467,176 Ultimate Customers t,742 1,466 1,267 2,215 2,744 Refund provision (5,500) (10,900) (l1,500) _ (10,700) Total Revenue from Electric Sales 767,736 599,915 497,352 510,190 459,220 Other Operating Revenue, principally rentals 8,558 8,299 7,397 8,441 6,411 Total Operating Revenue $776,291 $608,214 $ 501,749 $518,631 $465,631 MAxistust DEsfAND - Kw - ONE HOUR PEAK 3,132,700 3,159,000 3,078,700 3,171,800 3,154,900 3 (A) The generation and transmission facilities of an affiliate are operated as an integrated part of the Company's power supply and the affiliate receives credits (G and T credits) against its power bills for all costs of facilities so integrated, t 15
NEW ENGLAND POWER COMPANY Selected Financial Data Year Ended De(ember 31, 1980 1979 1978 1977 '< tin Thaunds) Operating revenue: Electric sales (excluding fuel cost re-covery) $ 247,337 $ 241,485 $ 234,481 $ 229,003 $ 227,928 Fuel cost recovery $20,399 ;58,430 262,871 281,187 231,292 Other 8,558 8,299 7,397 8.441 6,411 Total operating revenue J 776,294 $ 608,214 $ 501,749 $ $ 18,631 $ 465,631 Net income $ 57,929 $ 49,501 $ 47,614 $ 42,785 $ 44,215 Total assets $ 1,338,090 $ 1,172,831 $ 1,102,860 $ 1,011,101 $ 994,062 fong-term debt $ 476,319 $ 462,922 $ 465,413 $ 423,625 $ 386,887 , Preferred dividends $ 8,2 B $ 8,351 $ 8,351 $ 8,351 $ 8,351 Common dividends $ 46,7tU $ 40,312 $ 36,765 $ 36,120 $ 37,087 Per snare data is not r-!evant because the Company's common stock is wholly owned by New England Electric System. Financial Rcriew Operating revenue in 1980 totaled $776 million. This was an increase of $168 million or 28 percent over 1979. The increase in 1979 over 1978 was $103 million or 20 percent. The signii ant rise in operating revcnues in recent years is principally due to the recovery of higher fuel costs. The balance of the - ease reflect < ate increases and a r.,all increase in kilowarthour sales. The following table summarizes the changes in operating revenue: Increase (Danase)in Operating Rmntie 1980 1979 Iin Afillions1 Fuel recovery $136 $ 91 Rate increases 28 10 Sales growth 3 - Miscellaneous 1 2
$168 $103 The increase in operating expenses as shown in the following table, is principally due to the increased cost of fuel used for generation and included in purchased electric energy. However, those increased fuel costs are recovered in fuel clause revenues.
Increase (Dare.ase) in Operating Expenses e 1980 1979 tle htslisons) Total fuel cost $136 $ 96 Purchased energy excluding fuel 9 4 ' Operation and maintenance 3 11 Depreciation and amortization 4 1 Taxes 8 (7)
$160 $105 Other operation and maintenance expenses increased $3 million or 4 percent in 1980 and $ 11 million or 19 percent in 1979. The increase in 1979 reflects a $6 million increase in the cost of maintenance of generating facilities including costs associattJ with preparing for burning coal.
16 1
Depreciation and amortization expenscs in 1980 included amortization of the preliminary costs of the proposed { Charlestown nuclear project which was cancelled in December,1979. Amortization of these costs over 6ve years began l on June 1,1980, and is being recovered through rates. For a discussion of federal income taxes see note B of Notes to Financial Statements. The allowance for funds used during construction (AFDC) increased by $4 million in 1980 and $5 million in 1979. These increases were due to increased construction work in progress and higher AFDC rates. See note A of Notes to Financial Statements. The increase in other income in 1980 is principally due to income from interest on cash investments. In October,1980 the Company asked the ruleral Energy Regulatory Commission (FERC) for an $89 million rate incree, effectiveJanuary 1,1981. The FERC allowed, subject o refund pending 6nal decision, $20 million of this increase related to coal conversion to be effective January 2,198 . $59 million effective June 1,1981 a 1 disallowed
$10 million.
A milestone was resched in 1980 in the Company's rate pro < eedings before the FERC. Three prior rate cases, which had been pending since 1976, were fmally resolved. Because of reserves previously establiaed, the refunds for these cases had no material impact on 1980 earnings. The FERC also approved a settlement on the level of rates fc '980. The settlement provided for a $36 million annual increase in the Company's rates. Construction :penditures in 1980, excluding allowance for funds used during construction (AFDC), totaled $ 125 million and inciwe) about $64 million for coal conversion work at the Brayton Point Station. The FERC allows expenditures for coal conversion to be placed in the rate base as incurred. This was done and our current rates reflect these expenditures. Cash generated internally in 1980 totaled $30 million. Approximately twenty 6ve inillion dollars (after-rax) were used for refunds in the settlement of rate cases and the balance was applied to construction costs. Estimated cc,struction expenditures for 1981, excluding AFDC are $168 million. This includes approximately
$79 million for coal conversion costs and $66 million fcr jointly-owned nuc: ear generating units.
y laternally generated funds currently provide a relatively small portion of the Company's capital needs. Internal funds will provide a larger pordui. when construction is completed on the jointly-owned nuclear plants and they are placed in service. In March 1980 the Company issued $90 million in tax-exempt pollution control bonds through the Massachusetts Industrial Finance Agency. Tne proceeds of this issue are being used to 6 nance pollution control facilities for the coal conversion project at Brayton Point. A dual ofTering of $50 million of bonds and $50 million of preferred stock, tentatively scheduled for compera..e bidding in December 1980, was postponed
- ecause of high interest rates and unsettled markets.
In 1981, the Company expects to issue $50 million of preferred stock and up to $100 million of bonds, a portion of which will be used to refund $12 million of maturing 2% percent 6rst mortgage bonds. A discussion of the effects of inflation appears on pages 13 and 14. i m 17
NEW ENGLAND POWER COMPANY Selected Quarterly Financial Information (unaudited) First Second Third Fourth J980 Quarter Quarter Quarter Quarter tin TlwandsI Operating revenue $ 193,690 $ 151,421 $ 199,922 $231,261 Operating mcome $ 18,678 $ 13,237 $ 21,040 $ 18,437 Net income $ 14,616 $ 9,534 $ 17,105 $ 16,674 1212 Operating revenue $ 139,807 $ 132,311 $ 165,895 $ 170,201 Operating income $ 17,029 5 12,085 $ 16,317 $ 17,924 Net income $ 13,765 $ 8,824 $ 13,562 $ 13,350
- Per share data is not relevant because the Company's common stock is wholly owned by New England Electric System.
- A copy of New England Power Company's Annual Report on SEC Form 10-K, for the year ended December 31, 1980 will be available on or about April 1,1981, without charge, upon written request to James C. Nesbitt, Vice President-Finance, New England Power Company, 25 Research Drive, West-borough, Massachusetts 01581.
O 4 f i b I
EXHIBIT ff' File No. 0-1229 SECURITIES AND EXCHANGE COMMISSION 500 North Capitol Street, N.W. Washington, D.C. 20549 FORM 10-Q Quarterly Report Under Section 13 of Securities Exchange Act of 1934 For Quarter Ended March 31, 1981 Commission File Number 0-1229 NEW ENGLAND POWER COMPANY (Exact, name of registrrmt as specified in charter) MASSACHUSETTS 04-1663070 (State or other (I.R.S. Employer Jurisdiction of Identification No.) incorporation or organization) O 25 Research Drive, Westborough, Massachusetts 01581 (Address of principal executive offices) Registrant's telephone number, including area code - 617-366-9011 Indicate by check mark whether the registrant (1) has filed all annual, quarterly and other reports required to be filed with the Commission and (2) has been subject to the filing requirements for at least the past 90 days. Yes X No Comon stock, par value $20 per share, authorized and outstanding 6,449,896 shares. O
.-.s -.x- s _ - A -. - u- - u-_, _ - - _ _ __ - - - -_ ,_ _
e 4 i e f 4 1 8 I PART I FINANCIAL INFORMATION i P t 1 ( l i l l 9 9 l.
. . - . , . _ . - . . - . , _.-. ---- - ---~-------. _ -. ---
p a NEW ENGL AND POWER COMP ANY W e s t b o r o u t h, M a s s a c h u s e t t s QUARTERLY REPORT WARCH 1981 These financial statements should be considered in conjunction with the explanatory notes to the financial statements herein and in the Company's 1980 Annual Report. In the opinion of the Company, the statements re-O. flect all adjustments necessary to a fair statement of the results of its operations for the periods.
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NEW ENGLAND POWER COMPANY Statements of Income and Retained Earnings Periods ended March 31 (Unaudited) O Three Months Twelve Months T91f1
~~
~ 1980 1981 " 1980 fin Thousands)
Operating revenue $_26L486 $193,690 $85128_9 $6622 097 Operating expenses: Fuel for generation 147,684 98,580 430,866 326,353 Purchased electric energy: Fossil and interchange 37,179 23,660 116,529 72,570 Nuclear entitlements 13,874 11,148 54,488 43,846 Other operation 12,682 10,654 48,114 43,864 Maintenance 6,752 5,767 26,738 24,824 Depreciation and amortization 9,350 7,350 34,700 28,925 Taxes, other than federal income 9,489 8,744 30,768 29,585 Federal income taxes 10,794 9,109 33,801 27,125 Total operating expenses 247,804 175,011 776,004 597,092 Operating income 20,682 18,678 75,085 65,005 Other income: Allowance for equity funds used during construction 3,363 2,653 13,530 12,4 ~ Equity in income of nuclear power companies (Note A) 665 993 3,588 3,9 Other income-net 1,139 l_26 3,844 416 Operating and other income 25,849 22,450 96,047 81,822 Interest: Interest on long-term debt 9,651 8,899 37,171 35,660 Other interest 4,752 1,652 14,344 5,113 Allowance for borrowed funds used during construction-credit (5,350) (2,717) (15,577) (9,303) Total interest 9,0_53 7,834 35,938 31,470 Net income 16,796 14,616 66,T69 50,352 Retained earnings at beginning of period 30,641 27,747 28,020 26,977 47,437 42,363 88,129 77,329 Deduct: Cash dividends declared: Cumulative preferred stock 2,021 2,088 8,206 8,352 Common stock 13,867 12,255 48,374 40,957 Retained earnings at end of period 5 31,549 $ 28,020 $ 31,549 3 28,02d Per share data is not relevant because the Company's common stock is wholly owned by New England Electric System.
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HEW ENGLAND POWER COMPANY Balance Sheets (Unaudited)
/ Marc'i 31, December 31, v
ASSETS 19F.1 1980 (In Thousands) Utility plant, at original cost S 943,729 $ 943,607 Less accumulated provisions for depreciation 269,921 262.106 673,808 681,501 Construction work in progress 419,221 369,676 Net utility plant 1,093,029 1,051,177 Investments: Nuclear power companies, at equity (N,te A) 39,157 39,2'51 Nonutility property and other investments, at cost 7,930 7,421 Total investments 47,087 46,672 Current assets: Cash 2,058 2,153 Accounts receivable, principally from sales of electric energy: Affiliated companies 112,871 110,504 Others 16,559 23,654 Fuel, materials and supplies, at average cost 74,794 66,728 Prepaid expenses and temporary deposits 1,767 1,107 Total current assets 208,049 204,146 Deferred charges and other assets 5,323 5,369 Unamortized property losses 29,201 30,726
$1,382,689 51,338,090 CAPITALIZATION AND LIABILITIES j Capitalization:
Common stock, par value $20 per share, authorized and outstanding 6,449,896 shares 5 128,998 5 128,998 Premium on capital stocks 87,192 87,192 Dther paid-in capital 148,000- 148,000 Retained earnings 31,549 30,641 Total common equity 395,739 394,831 Cumulative preferred stock: Series without mandatory redemption requirements 86,028 86,028 Series with mandatory redemption requirement (less 48,500 and 39,300 shares held in treasury) 22,517 22,740 Total cumulative preferred stock 108,545 108,768 Long-term debt 491,457 476,349 Total capitalization 995,741 979,948 Current liabilities: Long-term debt due within one year - 12,000 Notes payable-commercial paper 86,955 90,855 Notes payable-associated companies 10,700 - Accounts payable (including $3,715,000 and $3,083,000 to affiliates) 114,738 107,103 Accrued liabilities: Taxes 8,598 1,607 Interest 7,846 8,357 Payroll and other accrued liabilities 1,378 818 Dividends declarea 13,867 - Total current liabilities 244,082 220,740 Deferred federal income taxes 97,549 94,954 Unamortized investment tax credits 45,317 42,448 v 51,382,689 T1,338,090 R
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NEW ENGLAND POWER COMPANY Note to Financial Statements A summary of combined results of operations, assets and liabilities of the nuclear power companies in which the Company has investments is as fellows: Three Months Twelve Months 1981 1980 1981 1980 T n Thousands) Operating revenue $ 77,300 $ 62,402 $290,848 $239,869 Net income $ 4,625 $ 4,382 $ 19,571 $ 22,157 Company's equity in net income $ 665 f 993 $ 3,588 $ 3,935 March 31, December 31, 1981 1980 (In Thousands) Plant $ 688,938 $ 694,672 Other assets 61,148 63,033 Liabilities and debt (551,753) (560,712) Net assets $ 198,333 $ 196,993 Company's equity in net assets $ 39,157 $ 39,251 At March 31, 1981, $4,974,000 of undistributed earnings of the nuclear powe companies were included in the Company's retained earnings. 1 l 9
, NEW ENGLAND POWER COMPANY Statements of Changes in Financial Position Periods Ended March 31 (Unaudituu)
- ( Three Months Twelve Months 1981 1980 1981 1980 T E Thousands)
Sources of Funds From operations: . Net income $ 16,796 $ 14,616- $ 60,109 $ 50,352 Depreciation and amortization 9,350 7,350 34,700 28,925 Refuds - 1,473 (48,173) 7,161 Deferred federal income taxes 2,595 1,578 33,499 16,258 Investment tax credits-net 3,394 1,915 11,144 7,641 Allowance for funds used during construction (8,713) (5,371) J29,107) j_21,769) 23,422 21,561 62,172 88,568 ~ Dividends on common stock (13,867) (12,255) (48,374) (40,957) Dividends on preferred stock (2 '21)- (2,088) (8,206) (8,352) Net funds from operations 7,d34 7,218 5,592 39,259 From financing transactions: Capital contributions from parent company - - 20,000 40,000 Long-term debt issues _ 15,053 900- 40,327 900 Long-term debt retirements (12,000) - (12,000) (7,400) Preferred stock retirements - - (1,250) - Changes in short-term debt 6,800 _ 3,375 78,780 18,875
. - Net funds from financing transactions 92 853 9,275 125,857 52,375
; Sources of funds 17,387 16,493 131,449 91,634
_/ Application of Funds Construction expenditures, excluding allowance for funds used during construction 41,055 19,547 146,'210 72,723 3(23,66's) $_( 3,054) $(14,761) $ 18,911 Increase /(Decrease) in Working Capital and Other Items Cash $ (95) $ (235) $ (4,581) $ (2,780) Accounts receivable (4,728) 6,127 21,968 11,891 Fuel, materials and supplies 8,066 4,364 17,002 14,632 Other current assets 660 6,364 (4,842)- 5,914 Accounts payable (7,635) 4,385 (54,243) -(21,260)
- Other current liabilities (20,614) (25,489) 2,366 8,184 Other items 678 1,430 7,569 2,330
$(23,668) $ (3,054) $(14,761) $ 18,911 un 3-orreasu rescum iss. Ion ron twa pumposa e pao o we sur ci on arracrIwo T a La unewNa secunivius.
NEW ENGLAND POWER COMPANY Financial Review Revenues Operating revenue in the first quarter of 1981 totaled $268 million which was an increase of $75 million or 38 percent over the first quarter of 1980. Operating revenue for the twelve months ended March 1981 totaled $851 million which was an increase of $189 million or 28 percent over the twelve months ended March 1980. This significant rise in operating revenues is principally due to the recovery of higher fuel costs. The balance of the increase reflects rate increases and a small increase in kilowatthour sales due to very cold winter weather. The following table summarizes the changes in operating revenue: Increase (Decrease) in Operating Revenue Three Months Twelve Months 1981 vs 1980 1981 vs 1980 (In Millions) Fuel recovery $62 $148 ( ) Rate increases 12 37 l Sales growth 1 4 ! $75 $189 l Operating Expenses The increase in operating expenses as shown in the following table, is principally due to the increased cost of fuel used for generation and included in purchased electric energy. However, the increased fue asts are recovered I i'n fuel clause revenues. i 1 l O l
~
The following table summarizes the changes in operating expenses: d Increase (Decrease) in Operating Expenses Three Months Twelve Months 1981 vs 1980 1981 vs 1980 (In Millions) Total fuel cost $66 $154 Purchased energy excluding fuel - 5 Operation and maintenance 3 6 Depreciation and amortization 2 6 Taxes 2 8
$73 $179 Other operation and maintenance expenses increased $3 million or 18 percent for the first quarter of 1981 and $6 million or 9 percent for the 12 months ended March 1981. The increases are primarily due to an increase in the maintenance of generating units as well as continuing inflationary pressures on all costs.
The increase in depreciation and amortization expenses is primarily due to the amortization of our proposed Charlestown nuclear project. Amortization of these costs over five years began on June 1, 1980, and is being recovered through rates. l The allowance for funds used during construction (AFDC) increased by $3 million I for the quarter and $7 million for the 12 months ended March 31, 1981 as compared to the corresponding prior periods. These increases were due to increased construc-l tion work in progress and higher AFOC rates. Other Income The increases in other income are principally due to interest income on cash investments.
1 Other Interest Expense The increase in other interest expense of $3 million in the quarter and
$9 million in the twelve month period ended March 31, 1981 as compared to the corresponding prior periods is principally due to the increase in short term borrowings.
l Rates ! In October, 1980 the Company filed with the Federal Energy Regulatory Commission (FERC) for an $89 million rate increase, to be effective January 1, 1981. The FERC allowed, subject to refund pending final decision, $20 million of this increase related to coal conversion to be effective January 2, 1981. The FERC further ruled that approximately $59 million of the balance of the rate increase may go into effect, subject to refund on June 1, 1981. Capital Expenditures and Financing Construction expenditures excluding AFDC, totaled $41 million for the quarter and $146 million for the twelve months ended March 31, 1981, including $25 million and $87 million respectively, for coal conversion work at Brayton Point Station. The first unit of which began burning coal on a permanent basis in late March. The FERC allows expenditures for coal conversion to be placed in the rate base as incurred. This was done and our current rates reflect these expenditures. Cash generated internally including changes in working capital totaled l l $31 million for the quarter and $46 million for the twelve months ended March 31, 1981. In February of this year the Company refunded $12 million of 2 7/8 percent first mortgage bonds. O l l
Part II. Other Information Item 6. Exhibits and Reports on Form 8-K. (b) Reports on Form 8-K None SIGNATURE P'irsuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. NEW ENGLAND POWER COMPANY By s/ D. E. Rose D.E. Rose, Treasurer Authorized Officer May 14, 1981 , f
NEW ISSUE EX HIS IT F-3 in the opinion of Palmer & Dodge, Boston, Massachusetts, Bond Counsrl, the interest on the 1990 Bonds is exempt from Federal income taxes und<r existing law, ezcept for interest on any 1980 Bond dun'ny any period n hile it is hcid by a p<rson who is a " substantial uscr" of the Project Facilitics or a "relatcd person" within the meaning of Section 103(b)(8) of the Internal Revenus Code of 1951, as ame nded. Undtr existing statutes, the 1980 Bonds and any income derived therefrom are exempt h from taxation under the laws of The Commonwealth of Massachusetts, including local property taxes and personal income taxes, but may be included in the measure of Massachusetts estate and inheri-tance taxes and of certain Massachusetts corporation excise and franchise taxes. See " Tax Exemp-tion" herein.
$90,000,000 ,
Massachusetts Industrial Finance Agency 9%% Pollution Control Revenue Bonds (New England Power Company Project- 1980 Series) The 1980 Bonds will be special, limited obligations of the Massachusetts Industrial Finance Agency payable only from certain General and Refunding Mortgage Bonds delivered by, and other g funds available punuant to a Loan Agreement between the Agency and
~
New England Power Company (a subsidiary of New England Electric Syritem)
- Dated: March 15,1980 Due: March 15,1983 I Interest on the 1980 Bonds will be payable semi-annually on March 15 and September 15 of each year beginning on September 15, 1980. Principal and interest on coupon 1980 Bonds are pay-able at the principal corporate trust office of Boston Safe Deposit and Trust Company, Boston, Massachusetts, Trustee, and also at the principal corporate trust office of Morgan Guaranty Trust e, Company of New York, New York, Paying Agent. The 1980 Bonds will be issued as coupon bonds in the denomination of $5,000 each, registrable as to principal only, or as fully registered bonds in denomi-6 nations of $5,000 or any multiple thereof. Coupon bonds and fully registered bonds are exchangeable i, at the principal corporate trust o nice of the Trustee. The 1980 Bonds are subject to redemption prior to maturity as described herein.
PRICE: 1007o (Accrued interut from March 15,1980 to be added)
#6 h The 1980 Bonds are offered when, as and if issued and received by the Underwriters, subject to l
the unqualified approval of !egality by Palmer & Dodge, Boston, Massachusetts, Bond Counsel, and to certain other conditions. With respect to matters pertaining to New England Power Company, the Agency and the Underwriters will receive the opinion of Robert D. Hartshorne, Corporation l
. Counsel, and Robert King Wulff, Assistant General Counsel of the Company. Certain legal matten will
- be passed upon for the Underwriten by Ballard, Spahr, Andrews & Ingersoll, Philadelphia, Pennsyl-7 vania. Delivery of the 1980 Bonds is expected on or about March 26,1980.
Goldman, Sachs & Cc. L. on, Read & Co. Inc.
- Shearson Loeb Rhoades Inc.
Dated: March 14,1980
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l I The information contained la this Odicial Statement has been obtained from New England Power Company and other sources which are deemed reliable by the Underwriters. No repre-sentation or warranty is made as to the accuracy or completeness of such information, and nothing con al::ed in this OSicial Statement is or shall be relied on as a promise or represen:ation a of the Underwriters. This OSicial Statement is submitted in connection with the sale of securille. [L.[' referred to herein, and may not be reproduced or he used, in whole or in part, for any other purpose. The delivery of this OSicial Statement at any time does not imply that the information herein is correct as of any time subsequent to its date. No dealer, saleeman, or any other person has been authorised by the Agency, New England Power Company, or the Underwriters to give any information or to make any representation l other than as contained in this OSicial Statement la connection with the ofering described herein 1 y and, if given or made, such other information or representation must not be relied upon as hav-Ing been authorised by any of the foregoing. This 08icial Statement does not constitute an ofer i of any securities, other than those described on the cover page, or an ofer to sell or & solleitation of an ofer to buy in any jurisdiction in 94hich it is unlawful to make such ofer, solicitation or sale. i' TABIE OF CONTENTS PAar PAos OFFICIAL STATEMENT Management's Discussion and Analy-Introductory Statement . 3 sis of Statements of Income . . A6 The Agency . 4 Operating Statistics . . A-8 The Project Facilities 4 Map . . . . .. .. .. . k9
', r The 1980 Bonds . 5 The Company's Business . A 10
.. The Loan Agreement 7 Properties . . . .. . A-10 The Indenture 9 76 L ad Growth and NEE'1 PLAN A 11 The General and Refunding Mortgage 3 ,
Bonds . 13 Additions to Generation Alli - Underwriting 18 Conversion to Coal . A 15 l Tax Exemption 19 Fossil Fuel Supply A 16 Legal Matters 19 Nuclear Fuel Supply . k18 Accountants 20 A-18
, Regulation .
- 7 Responsibility for Official Statentent 20 Rates . . k19 APPENDIX-New England Power k20 Environmental Requirementa i Company A22
. Research and Development Available Information . A-1 The Company . . . . I'itigation . . . . A-22
. A.2 Construction Expenditures and Employee Relations A-23 Financing . . A-2 Report of Indepndent Certified Capitalization . A-3 Public Accountants . A-24 Statements of Income 14 Financial Statements . A-25 2
890,000,000 Massachusetts Industrial Finance Agency 9%% Pollution Control Revenue Bonds 't (New England Power Company Project - 1980 Series) Due March 15,1983 INTRODUCTORY STATEMENT > This Official Statement is provided to furnish information relating to the Pollution Control Revenue Bonds (New England Power Company Project-1980 Series) (the "1980 Bonds") of G.. 31assachusetts Industrial Finance Agency (the " Agency") to be issued in the aggregate principal ainount of $90,000,000. The principal ar - int of the 1980 Bonds will be loaned by the Agency to New England Power b Company, a Massachu.stts corporation (the " Company"), for the purpme of financing certain pol-lution control facilities (the "Prvject Facilities") to be constructed at Units 1,2, and 3 ef the Com-pany's Brayton Point Station, which will qualify as " air or water pollution control facil.itiec" or "so.id waste dispaal facilities" for the purpose of Section 103(b)(4) of the Internal Revenue Code of 1954, as amended (the " Code"). The loan will be made punuant to a Loan Agreement to be dated as of y March 15,1980 (the " Loan Agnement") between the Company and the Agency, under which the Company will agree to make payments to the Trustee under the Indenture referred to below suf-ficient to pay when due the principal of and premium, if any, and interest on the 1980 Bonds. The Company's payment obligation will be evidenced by the issue and delivery to the Trustee of
$90,000,000 principal munt of the Company's General and Refunding Mortgage Bonds, Series C
. (the " Series C G&R Bows"), providing for payments of principal, premium, if any, and interst corresponding to the principal, premium, if any, and interat payments due on the 1980 Bonds. The Series C G&R Bonds will be issued under a Second Supplemental Indenture dated as of March 15, 1980 (the " Supplemental Indenture") to the General and Refunding ifortgage Indenture and Deed
-E of Trust dated as of January 1,1977 (as supplemented by the Supplemental Indenture and by the ~, previous supplemental indenture thereto, the "G&R Indenture") from the Company to New England Merchants National Bank, as trustee (the "G&R Trustee"). The Series C G&P Bonds will be g secured (ratably with all other bonds issued or to be issued under the G&R Indenture) by a lien on
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substantially all the property of the Company, subordinate to the lien of the Company's Indenture of Trust and First 3fortgage dated as of November 15, 1936, and indentures supplemental thereto (the "First Mortgage"), all as more fully described under "The General and Refunding Mortgage Bonds." The 1980 Bonds will be issued under a Trust Indenture dated as of March 15,1980 (the "Inden-4 ture") between the Agency and Boston Safe Deposit and Trust Company, Trustee (the " Trustee"), under which the Agency w$ assign to the Trustee all of its rights under the Loan Agreement, includ-ing its right to receive payments thereunder (other than certain payments received for indemnification and reimbursement of expenses), the Series C G&R Bonds, the moneys and securities held in the Con-3 O
t struction Fund and the Bond Fund under the Indenture, and the investment earnings on and pieceeds of any of the fongoing. The Trustee will be ngistrar and paying agent for the 1980 Bonds. Principal and interst on coupon 1980 Bonda will also be payable at the principal corporate trust office of 1 Morgan Guaranty Trust Company of New York, Paying Agent. The Indenture provides for the incu-
. ance of additional parity bonds from time to time (" Additional Bonds") to finance compie?4n of the i Project Facilities, to finance any additional pollution control facilities in Massachusetta under the
, Loan Agreement, or to refund Bonds issued under the Indenture as described below under"The Inden-ture- Additional Bonds". The 1980F Bonds, together with any Additionst Bonds issued under the Indenture, are herein referred to as the " Bonds".
The 1980 Bonds do not constitute a general obligation of the Agency or a debt or pledge of the faith and credii of The Commonwealth of Massachusetts, but are special obligations of the Agency b~ payable solely from the revenues and funds pledged for their payment as provided in the Loan Agreement and the ladenture. The' Agency has no taxing power.
.- There follow in this Official Statement brief descriptions of the Pw> ject Facilities, the 1980 A
C Bonds, the Loan Agreement, the Indentum, the Series C G&R Bonds, and tne G&R Indenture. Such descriptions are qualified in their entirety by reference to such documents, copies of which may be cumined at the principal corporate trust office of *he Trustee. During the offering period copies of the dcaurrmts may be obtained from the Underwriters listed on the cover page hereof. h THE AGENCY j, The Agency is a body politic and corporate and a public instrumentality of The Commonwealth of Massachusetts authorized by the Constitution and lavv of The Commonwealth of kassachusetts, sP including specifically Massachusett General Laws, Chapter 23A, $29 et seg. and, to the extent made / applicable thereby, Chapter 40D (collectively, the "Act"), to issue the 1980 Bonds for the purpose of -
? s financing the Project Facilities and to enter into the Loan Agreement and the Indenture.
M. n e.~ THE PROJECT FAGIIITES
; The Company's Brayton Point Station is located in Somerset, Massachusetts and consists of four generating units. Units 1,2, and 3 thereof (the " Plant") were originally designed to burn coal but were converted to oil burning in the ' ate 1960's to take advantage of then favorable oil prices. In con-formity with the national policy of reducing foreign oil consumption, the Company is now converting 4_ the Plant back to coal. ?-
The Projed Facilities which are to be 4nanced fmm proccWa of the 1980 Bonds are pollu-t'ca cortml facilities required in connection with the co version of the Piant from oil to coal burn-ing. Then,e facilities will include electrostatic precipitators designed to remove particulates from flue
, gas, a dry fly ash handling system designed to move and hold (pending final disposal off-site) fly . ash from the precipitators with .ninimal emissions into the atmosphere, that portion of a closed- , cycle wet bottom ash sluicing system designed to remove bottom ash from the Plant's boilers with minimal emissians into the atmosphere ans vithout leaching sluice water into the ground or the waters suircunding the Plant, and additional minor systems designed primarily to minimize emissions into the atmosphere. See " Conversion to Coal"in the Appendix hereto.
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Une of Proceed > It is anticipated that the proceeds from the sale of the 1980 Bonds will be applied approximately as follows: I Cost of the Project Facilities $88,700,000 r Underwriting Discount 900,000 Legal, Printing, and 3fiscellaneous Expenses 400,000 Total $90,000,000 Tile 1980 BONDS The 19A0 Bonds will be dated March 15, 1980, will bear interest from such date at the rate per annum stated on the cover page hereof and will mature on March 15, 1983. Interest on the 1980 Bonds will be payable semi-annually on March 15 and September 15 of each year beginning on g September 15,1980. The 1980 Bonds are being issued to provide intermediate-term financing for the Project Facilities. The Company and the Agency anticipate that Additional Bonds will be issued by the Agency to refund the 1980 Bonds and provide long term financing for the Project Facilities. 'See "The Indenture" for information concerning the application of the proceeds of any AP.ditional Bonds issued to refund jt 1980 Bonds prior to their date of redemption or stated maturity. The 1980 Bonds are aubject to redemption prior to maturity as set forth below.
, Optional Redemption in Wlu.te or in Part The 1980 Bonds may be redeemed at any time on or after March 15,1982 in whole or in part by lot at the option of the Agency (to be exercised only at the direction of the Company) at 100%% of the principal amount of the 1980 Bonds so redeemed, plus interest accrued to the redemption date.
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Extraordinary Optional Redemption in Whole g4 The 1980 Bonds may be redeemed at any time in whole at the option of the Agency (to be exer-
. cised only at the direction of the Company) at 100% of the principal amount thereof, plus interest accrued to the redemption date,if any of the following events shall have occurred:
(i) Damage or destruction to the Plant or the Project Facilities to such extent that in the opinion of the Company's board of directors (expressed in a resolution) and of an arch tect or
; engineer acceptable to the Trustee, both filed with the Agency and the Truste,e, (1) the Plant p or the Project Facilities, as the case may be, cannot be reasonably repaired, rebuilt, or restered within a period of six months to their condition immediately preceding such damage or destruction, or (2) the Company is thereby prevented from carrying on its normal operations at the Plant for a period of not less than six months.
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l . i l 1 ) I (ii) Loss of title to or use of a substantial part of the Plant or the Project Facilities as a i. 3 result of the exercise of the power of eminent domain which, in the opinion of the Company's board of directors (expressed in a resolution) and of an architect or engineer acceptable to the Trustee, both filed with the Agency and the Trustee, results or is likely to result in the Company's f l being thereby prevented from carrying on its normal operations at the Plant for a period of not L, i less than six months.
, (iii) A change in the Constitution of Massuhusetts or of the United States or legislative or l
administrative action (whether local, state, or Federal) or a final decree, judgment, or order of any court or administrative body (whether local, state, or Federal) which, in the opinion of ( ;' nationally recognized bond counsel, causes the Loan Agreement to become void or unenforceable i or impossible of performance in accordance with the intent and purpose of the parties as ex-lg pressed therein or,in the opinion of the Company's board of directors (expressed in a resolution), i ,, , imposes unreasonsue burdens or excessive liabilities upon the Company with respect to the Plant
- or the Project Facilities or the operation thenof.
,a (iv) The acquisition and construction or operation of the Project Facilities or the Plant shall have been enjoined or shall otherwise have been prohibited by any order, deeme, rule, or i regulation of any court or of any local, state, or Federal ngulatory body, adzrlaistrative agency, ' b., or other governmental body for a period of not less than six months. Speelal Mandatory Redennption The 1980 Bonds are subject to mandatory redemption at any time in whole (or in part if, in the
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opinion of nationally neognized bond counsel, such partial redemption will pnserve the tax-exempt status of interest on the remaining 1980 Bonds) at 100% of the principal amount of the 1980 Bonds so redeemed, plus accrued interest to the redemption date, in the event it is finally determined by the ,. Internal Revenue Service or a court of competent jurisdiction, as a result of a proceeding in which j the Company has participated or been given notice and an opportunity to participate, that, as a result ij of a failure by the Company to observe any covenant, agreement, or representation in the Loan Agree-l ment, interest payable on the 1980 Bonds is incitdable for Federal income tax purposes in the gross
#4. income of any holder of a 1980 Bond (other than a holder who is a " substantial user" or a "related
% pemon" within the meaning of Section 103(b)(8) of the Code). Any such determination will not be l
, considered final for this purpose until the conclusion of any appellate review or the expiration of the period for seeking appellate nyiew. Any such ndemption shall be made on the'120th day after the date such determination has become final or on such earlier date as the Agency (to be exercised
. only at the direction of the Company) may designate. If such redemption occurs in accordance with 1 the terms of the Indenture, then such failure by the Company to observe such covenant, agreement, or
) representation in the Loan Agnement will not in and of itself constitute c. default under the Loan Agreement or the Indenture.
The Loan Agreement provides that in the event the Company receives notice from the Trustee pursuant to the terms of the Indenture that a proceeding which could lead to a final determination that interest on the Bonds is taxable has been instituted against a bondholder, the Company shall promptly notify the Trustee and the Agency whether it intends to contest such proceeding. In the event that the Company chooses so to contest, it will use its best efforts to obtain a prompt final determination in nach pmeeeding and will keep the Trustee and the Agency informed of the prognes thereof. See "The Indentum-Substitution of Collateral" for information concerning the avail-l ability of funds in a special mandatory redemption after a substitution of collateral. 6 l 1 0 m g,--- , + - - - , . . - - - , , - , , - - - , . -
Notice ef Redemption Notice of any redemption will be published at least once a week for two successive weeks in a newspaper or financial journal of general circulation in the City of New York, New York, and in a newspaper or financial journal of general circulation in the City of Boston, Massachusetts, the first , such publication to be not less than 30 nor mon than 60 days before the redemption date. In 'f
, addition, notices of redemption will be mailed by registered or certified mail to the registered owner of each 1980 Bond to be redeemed, to the owner of each unregistered 1980 Bond to be redeemed who has filed his name and address with the Trustee, and to Moody's Investors Service, Inc., Standard &
Poor's Corporation, and The Daily Bond Buyer. Failure to mail any such notice or any defect in respect of such mailing will not affect the validity of such redemption. In the event that all of the 1980 Bonds to be redeemed are ngistered as to principal, notice by registered or certified mail to the owners thenof shall be sufficient, and published notice need not be given. After the date specified in such notice, the 1980 Bonds so called will cease to accrue interest, pmvided funds for their pay-ment have been deposited with the Trustee, and except for the purpose of payment, such 1980 Bonds will no longer be deemed outstanding under the Indenture. Registration b The 1980 Bends will be issued as coupon bonds in the denomination of $5,000 each, registrable
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as to principal only, or, at the option of the holder, as fully registered bonds in the denomination of
$5,000 or any multiple thereof. Coupon Bonds may be registered as to principal and may be ex-changed for fully registered Bonds of any uhorized denomination o? the same maturity. All such registrations, exchanges, or transfers shall be at the principal corporate trust office ci the Trustee.
p' The Trustee may make a charge for such transfers sufficient to reimburse it for any tax, fee, or other governmental charge required to be paid with respect to such registration or transfer. The Trustee is not required to register, transfer, or exchange Bonds for a period of 15 business days preceding any interest payment date or the date of selection of any Bonds for redemption or to register, transfer, or exchange any Bonds selected or called for redemption. 'a THE LOAN AGREEMENT '. p The following, in addition to information provided elsewhere herein, summarizes the Loan Agree. ment, to which reference is made in its entirety for the detailed provisions thereof.
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The Loan Agreement provides for the financing by the Agency of the Project Facilities to be pyL acquired and constructed by the Company. The Agency will obtain funds to finance the Project Facilities by issuing the 1980 Bonds and will loan the principal amount of the 1980 Bonds to the Company by depositing the pmceeds thereof (exclusive of accrued interest) with 0. Trustee to be held in a Construction Fund under the Indenture and used for payment of the costa of the Project Facilities. To evidence its obligation to repay the loan, the Company will issue and de'iver
, the Series C G&R Bonds to the Trustee concurrently with the issue of the 1980 Bonds.
f The Loan Agreement makes similar pmvision for the issue and use of proceeds of Additional Bonds, including the requirement of delivery by the Company of a corresponding series of its General and Refunding Mortgage Bonds to the Trustee in connection therewith. 7 9
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1 Payment of Debt Service The Company agrees to pay to the Trustee (by making payments of principal of and interest , and premium, if any, on the Series C G&R Bonds or otherwise) any balance of available moneys then in the Bond Fund under the Indenture, may be weessary to provide for the prompt payment when due (whether at maturity, upon acceleration or redemption, < or otherwise) of the principal of and premium, if any, and interest on the 1980 Bonds. The obliga-tion of the Company to make such payments is absolute and unconditional, is binding and enforce-able in all circumstances whatsoever, and is not subject to any setoff, recoupment, or counterclaim. Payments by the Company to the Trustee for deposit in the Bond Fund shall discharge the obli-gation of the Company to the extent of such payments; provided that if any mone)s in the Bond g Fund are invested in accordance with the Indenture and a loss results therefrom so that there are s insufficient funds to pay or repay principal of and premium, if any, and interest on the Bonds when , due, the Company shall not be so discharged and shall pay to the Truwce as aforesaid an amount 2 equal to the deficiency. 54
*? Construction of the Project Facilities Subject to the right to delete any portion thereof, the Company agrees to complete the Project Facilities, with no change or addition that would cause any of the Project Facilities to fail to . qualify as " pollution control facilities" under the Act, or as " air or water pollution control facilities" .' or " solid waste disposal facilities" within the meaning of Section 103(b)(4) of the Code. The Com-pany agrees to complete the Project Facilities at its own expense if the proceeds of the 1980 Bonds and of any Additional Bonds deposited in the Construction Fund under the Indenture are insuf!!cieu .p to complete the Project Facilities. Prior to completion thereof, the Company may delete any portion / of the Project Facilities if,in the opinion of nationally recognized bond counsel, the tax-exempt status / of the interest on 1980 Bonds will not be affected thereby, and shall delete any portion of the Project Facilities, if neceanary, in the opinion of nationally recognized bond counsel, to maintain the tax.
d exempt status of interest on any 1980 Bonds. In the event of any such deletion, the Company agrees f to restore to the Construction Fund the full amount of any disbumements requisitioned in respect of such deleted portion. l I
; Other Covenants of the Company l I The Company, among other things, further covenants that it will (i) take no action which would impair the exemption from Federal income taxes of interest on the 1980 Bonds or any Additional l Bonds, (ii) use the Project Facilities and any other pollution control facilities financed pursuant to the Loan Agreement (" Additional Facilities") only in furtherance of the purpose of controlling pollution and otherwise in compliance with the Act, and (iii) maintain its corpe.ite existence and not dissolve or otherwise dispose of all or substantially all of its assets and not consolidate with dr merge into anothcr corporation or permit one or more other corporations to consolidate with or merge into it, except in compliance with the conditions of the O&R Indenture, which provides, among other things, that the succensor corporation shall expressly assume in writing the Company's oblign-
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tions under the G&R Ind;nture cod cll bonds issued thereunder, including the Series C G&R Bonda, and except on the further condition that such successor corporation shall expressly assume in writing the Company's obligations under the Loan Agreement and the Indenture. h Amendment The Loan Agreement may be amended from time to time, in accordance with the Indenture as described below, but only with the consent of the Trustee. THE INDENTURE The following, in addition to information provided elsewhere herein, summarizes the Indenture, to which reference is made in its entirety for the detailed provisions thereof. The Indenture constitutes an assignment by the Agency to the Trustee, in trust to secure pay. ment of the 1980 Bonds and any Additional Bonds issued thereunder, of all of the Agency's rights under the Loan Agreement and the Series C G&R Bonds (except the Agency's rights to payment of f expenses and indemnification). The Indenture provides for the issuance of the 1980 Bonds, the issuance of Additional Bonds, the redemption of the Bonds, and all other terms pertaining to the Bonds. t.
'I Construction Fund The net proceeda of the 1980 Bonds (other than accrued interest) will be deposited in the Con.
struction Fund and disbursed upon Company requisitions to pay the cost of acquisition or construction and installation of the Project Facilities, including, but not limited to, the cost of all financing charges, engineering, financial, and legal services, and certain interest on Bonds. The Company will not make any requisition from the Construction Fund if, immediately after the payment thereof, less j than substantially all of such proceeds theretofore withdrawn from the Construction Fund will have
.O been withdrawn to pay the cost of " air or water pollution control facilities" or " solid waste disposal
/ facilities" within the meaning of Section 103(b)(4) of the Code. Any balance in the Construction Fund after completion of the Project Facilities must be used for such purpose, consistent with the Act, as will not, in the opinion of nationally recognized bond counsel, impair the exemption from Federal taxation of interest on the 1980 Bonds.
f.~. t i l Bond Fund l l There will be deposited in a separate account in the Bond Fund under the Indenture the accrued l . interest received upon the sde of each series of Bonds, together with all amounts payable on the l I General and Refunding Mortgage Bonds issued in respect of such series (the Series C G&R Bonds l in the case of the 1980 Bonds) and any other moneys paid into the Bond Fund for the benefit of such l , series. The moneys in each account in the Bond Fund, with respect to an outstanding series of 9 l . T ,* y v g_ a
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e
i Bonds, will be applied solely to the payment of the principal of and premium, if any, and interest on the series of Bonds for which such account was established, except that following an event of default under the Indenture moneys in the Bond Fund will be applied ratably to all Bonds in the manner described under " Defaults and Remedies" below. . Investments Moneys in the Construction Fund may be invested at the direction of the Company, pending their use, in (i) obligations issued or guaranteed by the United States, (ii) obligations issued or guaranteed by any person controlled or supervised by and acting as an instrumentality of the United p States punusnt to authority granted by the Congress of the United States, (iii) obligations issued or guaranteed by any state or political subdivision thereof, provided that such obligations are rated for , investment purposes at not less than "A" by Moody's Investors Service, Inc. or by Standard & Poor's l 4 Corporation, (iv) commo:id paper rated not less than "P-2" by Moody's Investors Service, Inc., or
, not less than "A-2" by Standard & Poor's Corporation, (v) certificates of deposit of, or bankers' accep-y C
tances drawn on and accepted by, commercial banks which are mem'.>ers of the Federal Deposit Insur-ance Corporation and which have capital, surplus, and undistributed profits of at least $25,000,000, and (vi) repurchase agreements with any such commercial bank secured by obligations described in clauses (i) and (ii) above.
, Moneys in the Bond Fund may be invested in Investment Obligations, with maturities on or
.- before the time when such moneys are required to be available. Investment Obligations means (i) noncallable direct or general obligations of, or noncallable obligations the payment of the principal j- of and interest on which are unconditionally guaranteed by, the United States or (ii) certificatos of
.P . deposit issued by, or other banking arrangements of, any bank or trust company which is a member of the Federal Reserve System, and secured by obligwns described in (i) above in an amount suffi-cient fully to secure at all times the payment of the face amount of such certificates of deposit or other banking arrangements and the interest payable thereon.
l M The Company will not request, authorize, or permit e.ny investment of funds held under the Indenture which would cause any Donds to be classified as " arbitrage bonds" as defined in Section 103(c) of the Code. Additional Bonds Additional Bonds of series other than the 1980 Bonds may be issued to finance completion of the l ' Project Facilities or any Additional Facilities or to refund any series of Bonds issued under the ! Indenture to the extent permitted by the terms thereof. Additional Bonds will be equally and ratably secured under the Indentum with the 1980 Bonds offered hereby, except that moneys set aside from time to ume for certain purposes, including the payment of Bonda previously called for redemption or upon the defeasance of a series of Bonds, will be held solely for the benefit of such Bonds. Prior to or concurrently with the issuance of any Additional Bonds, the Company will deliver to the Trustee additional General and Refunding Mortgage Bonds in the same aggregate principal amount, with corresponding intertet rates, maturity and redemption dates, and premiums. . 10
1 l l Def;ults and Remedies ) The following events are defined in the Indenture as " events of default": (i) Failure to pay the principal of or premium, if any, on any Bond when due; (ii) Failure for a period of thirty days to pay interest upon any Bond; 'l (iii) The occurrence of any " default" as defined in the G&R Indenture; or (iv) Failure by the Company for rixty days after notice to perform any of its covenants or agreements contained in the Indenture, in any indenture supplemental thereto, in any Bond or in the Loan Agreement; provided, however, that if such default be such that it cannot be cured by the Company within such sixty day period,it shall not constitute an event of default if curative - action is instituted by the Company within such sixty-day period and thereafter is diligently pursued until such default is cured. Upon the occurrence of an event of default, the Trustee may, and upon the request of holdem of not less than 25% in principal amount of the outstanding Bonds shall, declare the remaining principal of the Bonds and the interest accrued thereon immediately due and payable, and may pursue any one or more of various remedies provided for in the Indenture. A majority in principal amount of b the outstanding Bonds may annul any such declaration or may waive any event o.' default (other than a failure to pay the principal of or interest or premium, if any, on any Bond when due and payable) and its consequenem. No Bondholder will have any right to institute proceedings or punue any other remedy under the Indenture unless the Trustee has been requested to do so by the holders of not less than 25% in principal amount of the outstanding Bonds and offered indemnity against 6 the expenses and liabilities to be incurred in connection therewith, a_nd has failed or refused within a reasonable period of time to comply with such request. Upon an acceleration of the bonds ontstanding under the O&R Indenture, the principal, together with interest accrued thereon, of all Bonds then outstanding under the Indenture shall become , immediately due and payable without the necessity of any action by the Trustee or any Bondholder;
, but a rescission or annulment of the acceleration of the maturity of such bonds punuant to the G&R Indenture will constitute a waiver of the event of default described in clause (iii) above and of its
. consequences. f Moneys held or received by the Trmtee after an event of default has occurred and while it is con-i tinuing will be applied (after payment of certain prior charges, including amounts to which the Agency and the Trustee are entitled) as follows:
- (i) Unless the principal of all the Bonds has become or been declared due and payable, I First: To the payment of all installments of interest then due on the Bonds, in the order of the maturity of such installments including (to the extent permitted by law) interest on overdue installments of interest at the rate borne by the Bonds on which such interest shall then be due, and, if the amount available is insufficient to pay in full any particular
} installment, then to the payment of such installment ratably, according to the amounts due 7 thereon; and Second: To the payment of the unpaid principal of any of the Bonds which have become due (other than Bonds called for redemption for the payment of which moneys are held punuant to the provisions of the Indenture), in the order of their due dates, with interest 11
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e on such Bonds from the respective dates upon which they become due, and, if the amount available is insufficient to pay in full Bonds clue on any particular date, together with such interest, then to the payment thereof ratably, acording to the amount of principal due en such date. (ii) If the principal of all the Bonds shall have become or been declared due and payable, to the payment of the principal and interat then due and unpaid upon all of the Bonds, without preference or priority of principal over interest or of interest over principal, or of any Bond over any other Boad, ratably, according to the amounts due respectively for principal and interest. SupplementalIndenturent Amendment of loan Agreement p The Indenture may be amended by supplemental indenture under certain conditions without the consent of the Bondholders and otherwise (with certain exceptions relating to provisions governing the dates and amounts of payments on the Bonds and provisions governing amendments to the Inden-2 ture) with the consent of the holders of at least 60% in aggregate principal amou it of the Bonds then outstanding which would be affected by the action proposed to be taken; provided that no amendment may be made which adversely affects the rights of some but less than all the outstanding Bonds with-i(' out the consent of the holders of at least 60% in aggregate principal amount of the Bonds so affected. The Loan Agreement may be amended with the consent of the Trustee, provided that any amend-ment which would adversely affect any Bondholder must be consented to in the same manner as an amendment to the Indentum. The Trustee may not, however, consent to any amendment to the Loan Agreement which would (i) decrease the amounts payable under any General and Refunding 31 ort-gage Bonds or the Loan Agreement, (ii) change the date of payment or prepayment provisions under any General and Refunding 31ortgage Bonds, or (iii) change provisions of the Loan Agreement with
,, respect to amendment thereof or payment of debt service. The Trustce as the holder of General and 'f Refunding 3Iortgage Bonds may consent to amendments to the G&R Indenture, subject to the same conditions.
Substitution of Collateral N The Company is entitled to obtain the release of a portion of the General and Refunding Mort-gage Bonds held by the Trustee in respect of any series of Bonds by either (i) surrendering to the Trustee for cancellation a like principal amount of outstanding Bonds of such series having corre-sponding maturities and interest rates, or (ii) depositing with the Trustee in the account for such series in the Bond Fund any combination of cash and Investment Obligations (as described under "Investmu.ts", above) the principal amount of which and the interest thereon when due will be sufficient to pay when due the principal of and premium, if any, and interest on a principal amount of outstanding Bonds of such series equal to the principal amount of, and with muurities and interest rates corresponding to those of, the General and Refunding Afortgage Bonds so nieased. Such cash and Investment Obligations in respect of any series of Bonds shall be maintained by the Trustee in a
. separate sub-account and (so long as no event of default has occurred and is continuing) shall, with t:m hvestment earnings thereon, be applied exclusively to the payment of the principal of and premium, if any, and interest on such series of Bon @ in the same manner as payments on the surrendered General and Refunding 3fortgage Bonds would here been applied.
If the 1980 Bonds become due prior to maturity through a special mandatory redemption and the substituted collateral is not sufficient to pay the redemption price thereof because of penalty 12
provisions relating to redemption of the Investment Obligations or otherwise, the Company agrees to pay to the Trustee any such deficiency. The obligation of the Company to pay such deficiency is not secured by General and Refunding Mortgage Bonds. Defeasance ~ The lien of the Indenture will terminate with respect to any series of Bonds, and such series of Bonds will no longer be considered outstanding under the Indentum, when there is deposited with the Trustee in the account for such series in the Bond Fund any combination of cash and Investment Obligations (as described under " Investments", above) the principal amount of which and the interest thereon when due will be sufficient to pay when due the principal of and premium, if any, and interest . on the Bonds of such series, and certain other conditions have been met. Such cash and Investment Obligations will thereafter be pledged solely to the payment of the principal of and premium,if any, and interat on such series of Bonds. Concerning the Trusteet Certain Bondholder Action The Trustee shall be entitled to be indemnified by the Company for any loss, liability, or expense incurnd without negligence or bad faith on its part arising out of or in connection with the acceptance p or administration of the trust. The holders of a majority in aggregate principal amount of the Bonda s then outstanding may direct the method and place of conducting all proceedings to be taken by the Trustee for the protection of the rights of the Bondholders.
; THE GENERAL AND REFUNDING MORTGAGE BONDS f* The following brief summary of the Series C G&R Bonds, the O&R Indenture, and the Pitst Mortgage, which has been supplied by the Company, uses terms defined in those documents, and is qualified in its entirety by reference thereto. Copies of the G&R Indenture and the First Mortgage may be examined at the Company's principal executive office located at 25 Research Drive, Westborough,
, Massachusetts 01581. l All payments 'oy the Company o'f principal, premium, if any, and interest on the Series C G&R Bonds are to be made to the Trustee on the date when the corresponding payments are required to ,' be made on the 1980 Bonds. The principal amount, interest rate, and maturity of the Series C G&R .p Bonds correspond to the principal amount, interest rate, and maturity of the 1980 Bonds. The Sup-plemental Indenture contains pmvisions for the Series C G&R Bonds which correspond to the
-' optional, extraordinary optional, and special mandatory redemption provisions of the 1980 Bonds described under "The 1980 Bonds". The Series C G&R Bonds will be issuable only in fully registered f .-
form in the name of the Trustee and will be nontransferable except as provided in the Indenture. Security and Priority The Series C G&R Bonds, when duly issued, will, in the opinion of Rober'. D. Hartshorne, Cor-poration Counsel, and Robert King Wulff, Assi-tant General Counsel of 'ae Company, be secured, together with all other General and Refunding Mortgage Bonds heretofore sad hereafter issued under
). the G&R Indenture, by a mortgage lien on substantially all the principal properties and franchises t .
then owned by the Company, subject only to the lien of the First Mortgage, liens permitted by the G&R Indenture, and property excepted in the granting clauses in the G&R Indenture. The G&R Indenture contains an after-acquired property clause which by its terms and to the extent permitted by law covers the interest of the Company in all after-acquired property. The First g laf
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l 1 f Mortgage has a similar clause. Such after. acquired property may be subjected to a lien to secure a purchase money obligation, not in excess of 607o of the Cost or Fair Value, whichever is less, of such property. Certain types of property are excepted from the lien of the G&R Indenture, including, y among others: fuel; nuclear cores and materials; all gas, oil, and other mineral properties and personal L property related thereto, supplies; vehicles; cash; securities; contracts; and accounts receivable. While the principal currently o erating e generating stations, dams, and substations are on land owned by the Company, the principal transmission lines are often on lands of others pursuant to +6sement rights. Ownership of generating str.tions now under construction is held in undivided joint ownership with j other utilities. No debt may be created by the Company ranking prior to or on a parity with the Series C G&R Bonds with respect to the security provided by the G&R Indenture, except additional General and D Refunding Mortgage Bonds issued in the manner summarized below, bonds issued under the First Mortgage (the "First Mortgage Bonds") pledged with the G&R Trustee under the G&R Indentun, obligatioas supported by additions and enlargements to property already subject to certain types of ! prior liens (none of which currently exist), and purchase money obligations e21 sting or created in con-nection with the acquisition of after. acquired property. Prior liens and purchase money obligations, p other than First Mortgage Bonds, shall not exceed 257o of the sum of all outstanding General sad Refunding Mortgage Bonds and obligations representing liens prior to the G&R Indenture In addition, the G&R Indenture provides that the Company will not dissolve or otherwise dispee of all or substantially all of its assets and will not consolidate with or merge into another corpora-
. tion or permit one or mora other corpocations to consolidate with or merge into it, unhas, among other . things, the successor corporation executes and delivers to the G&R Trustee, and causes to be recorded,
! an indenture supplemental to the G&R Indenture, in form satisfactory to the G&R Trustee, whereby
. the successor corporation expressly assumes the Company's obligations under the O&R Indenture ;. and all bonds issued thereunder. / General and Refunding Mortgage Bonds will be further secured by First ?fortgage Bonds which the Company issues and pledges with the G&R Trustee. Upon any application to issue any General and Refunding Marigage Bonds (including the Serics C G&R Bonds) or certain other actions, the fd Company will be required to deposit, as a pledge with the G&R Trustee, Fiat Mortgage Bonds (the
( " Pledged Bonds") in the marimum amount then issuable (not exceeding the aggregate amount of General and Refunding Mortgage Bonds then and thentofore issued and with exceptions for certain minimum amn.ints), after permitting the Company to retain at its option an amount of unfunded Additional Property or retired First Mortgage Bonds adequate to cover sinking fund and improve-l ment fond requirements under the First Mortgage. The Pledged Bondo, when duly issued, will, in
- ,- the opinion of Robert D. Hartshorne, Corporation Counsel, and Rob (rt F..ag Wulff, Assistant General r
Counsel of the Company, be secured, together with all First _iartgap Bonds now issued and out-standing under the First Mortgage, by a direct first mortgage lien on substantially all the property of the Company, and after. acquired property to the extent permitted by law subject only to excepted l property and permitted liens. Additional First Mortgage Bonds may be issued against a like amount of First Mortgage Bonds or against 607c of the Net Amount of Additional Property; however, in the G&R Indenture the Company has covenanted to issue First Mortgage Bonds only for pledging with the G&R Trustee. The Company hau also covenanted in the G&R Indenture not to permit certain modifications to the First Mortgage which could reduce the amounts of First Mortgage Bonds issuable in the future for the purpose of pledging. The Pledged Bonds are nontransferable. Based upon the amount of retired First Mortgage Bonds and the approximate Net Amount of Additional Property (as defined in the First Mortgtge) against which First Mortgar.,e Bonds might I4 l l
be issued, the Company estimates $15 million of First Mortgage Bonds will be pledged with the G&R Trustte upon the issue of the Series C G&R Bonds. Five million dollars of these First Mortgage Bonds will be issued against retired First Mortgage Bonds. The relationship of the total principal amount of Pledged Bonds to General and Refunding Mortgage Bonds will vary from time to time depending upon the ability of the Company to issue additional Pledged Bonds and certain other conditions. ,I The First Mortgage requires, as to, all property used to support the issuance of additional First Mortgage Bonds and certain other aefions under the First Mortgage, that all licenses and permits necesssry for the operation of property be obtained prior to such use. As a result of changes in state and Feocral laws since the First Mortgage was drafted in the mid.1930's (particularly with respect to the requirements of operating licenses for nuclear generating plants and for environmental per-mits), this provision no'w puents,the bonding of most major new facilities during corstructien. The '. property additions of major new generating units in which the Company proposes to participate, there-fore, will not be available to tupport the issuance of additional Pledged Bonds 'ntil after the comple. tion and licensing of thejparticular units. Capital expenditures in connection with cocl conversion will, howev(r, be available to support additional Pledged Bonds. After the ir,ue of the Series C G&R Bonds, there will be $50 million of Pledged Bonds and $190 million of General and Refunding Mortgage Bonds outstanding. The deposit of Pledged Bonds with the G&R Trustet will not inemase the tota; g a aount of property in which holders of General and Refunding Mortgage Bonds have a direct orindirect
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security interest, since the G&R Indenture constitutes a junior lien on substantially the same prope-'- that is subject to the prior lien. of the First Mortgage. The principal benefit to holders of General
. and Refunding Mortgage Bonds provided by the Pledged Bonds will be that,in the event of a reorga-nization or insolvency,of the Qompany, if values allocated to the holders of General and Refunding Mortgage Bonds and publicly held First Mortgage Bonds were less than the principal amount of and I'i interest on all First Mortgage Bonds, including the Pledged Bonds, the allocation to the holders of Gen-eral and Refunding Mortgage Bonds may be increased, in the opinion of the Company, by reason of their participation in the lien of the First Mortgage through the Pledged Bonds. (If there were a de-fault under the G&R Indenture, interest and principal due on the Pledged Bonds would be paid to the e ,, G&R Trustee; however, in no event would the total principal and interest paid to holders of the General and Refunding Mortgage Bonds exceed the amounts provided for in such bonds.) As the bonds now outstanding under the First Mortgage matnre or are redeemed, publicly held First Mortgage Bonds will repment a decreasing share of the security afforded by the lien of the First Mortgage and, to the f
extene och bonds are replaced by Pledged Bonds, Pledged Bonds will represent an increasing share
, in the lien of the First Mortgage. Upon the retiremen; of all publicly held First Mortgage Bonds (in 2005, or earlier if First Mortgage Bonds are called), the First Mortgage will be discharged and f b g General and Refunding Mortgage Bonds will become first mortgage bonds.
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Under the Atomic Energy Act, neither the Trustee nor any other transferee of the Company property may operate a nuclear generating station without authorization from the Nuclear Regulatory Comiaission (the "NRC").
, Add;tional General and Refunding Mortgage Bonds g, Additional General and Refunding Mortgage Bonds of any series may be issued as follows:
7 (i) egainst 6% of the Available Net Additional Property; (ii) to refund a like amount of First Mortgage Bonds of any ceries which have not been used for certain other burposes; 15 F**
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r (iii) to refund a like amount of bonds originally issued under a mortgage (the lien of which is prior to the lien of the G&R Indenture) existing on property at or immediately prior to the time of acquisition by the Company of such property; (iv) to refund a like amount of General and Refunding Mortgage Bonds of any series which f have not been used for certain other purposes; and L. (v) against the deposit of money. Money so d? posited may be withdrawn in amounts equal to the principal amount of General and Refunding Mortgage Bonds otherwise issuable against Available Net Additional Property or to refund bonds. When issuing General and Refunding Mortgage Bonds against Additior.al Property or the deposit p of money, the Company must demonstrate that Net Earnings (including revenues subject to refund unless there has been issued a final decision, which has not been stayed, of a regulaterv commission or of a court ordering a refund of such revenues) for any 12 consecutive calendar months within the
- preceding 15 calendar months are at least mice the annual interest charges on all General and Refund.
ing Mortgage Bonds outstanding and applied for and on all equal or prior lien indebtedness excluding f, Pledged Bonds. Except in certain instances, no earnings test is required in connection with the
+' refunding of a like amount of bonds.
Based on preliminary financial results, at February 29,1980, the Company had approximatcl;
$135 million of Available Net Additional Property. Of the $90 million principal amount of the Serio C G&R Tlonds, approximately $80 million will be issued against such Available Net Additional Pren.
- erty; $5 million will be issued against a like principal amount of First Mortgage Bonds, Series C, whi:h were retired at maturity on July 1,1979; and approximately $5 million will be issued against cash.
, Replacement Fund under the GAR Indenture [ . So long as any bonds remain outstanding under the First Mortgage, the Company will comply wi'h the requirements of the improvement fund obligations of the First Mortgage as descrihal below.
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When said obligations cease, the Company will be obligated under the G&R Indenture to pay annually M as a replacement fund 1.3% of its average investment in depreciable hydroelectric property on the last *
% day of each month of the previous calendar year and 3.0% of such average investment in depre-ciable property other than hydroelectric property or such other percentage as from time to time is authorized by the Securities and Exchange Commission (the "SEC") upon application by the Com-pany. The replacement fund requirement may be satisfied by cash, General and Refunding Mortgage Bonds of any series, or an Available Amount of Additional Property. Additional Property evidenced
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. under either the improvement fund of the First Mortgage or the replacement fund may be used to offset certain retirements in computing Available Net Additional Property.
Improvement Fund under the First Mortgage Under the First Mortgage there is an improvement fund, in effect so long as any Series D through P and R through U First Mortgage Bonds remain outstanding (and so long as any Series V through X Bonds remain issued and pledged) with an annual requirement, paytole July 1, which is the greater of 1.5% of the average investment in deprecia.ble property at the beginning and end of the preceding calendar year, or the total of 1.3% of such average investment in depreciable hydroelectric property and 2.1% of such average investment in depreciable property other than hydroelectric proparty. (Said 1.3% and 2.1% are subject to change as provided in the First Mortgage.) The annual improve-16
l l ment fund may be natisfied by cash, First Mortgage Bonds of any series, or certain credits, prin. cipally the evidencirg of certain property additions and acquisitions. Additional Property evidenced under the improvement fund is used to osset certain retirements in computing Net Amount of Additional Property. I,'
, Pededie Examination of Property under the C&R Indenture l So long as any First Mortgage Bonds nmain outstanding, the Company will comply with the requirements for examination of property of the First Mortgage, as described below. When those obligations cease, an examination and report as to maintenance must be made at least once in every five calendar years by an independent engineer. Deficiencies so reported must be made good with all reasonable speed.
Periodie Excm! nation of Property under the First Mortgage Examination and certification as to maintenance must be made every two yesrs by an engineer who every four yeam must be an independent engineer. Deficiencies reported in any certificate must be made good before paying dividends on capital stock or issuing First Mortgage Bonds based on property additions. V-Dividend Restriction under the C&R Indenture
" So long as any of the Series A through C G&R Bonds are outstanding, the Company may not declare or pay any dividend (cther than dividends payable solely in shares of common stock), or maka i any other distribution ou, or purchase, any shares of its common stock at any time outstanding (other K than by new common atock financing), if thereafter the amount of the dividends, distributions, and purchases (at cost) after June 30,1976, would exceed its Net Income subsequent thereto less preferred stock dividends paid or declared, plus $41 million and additional amounts as may be authorized by the SEC.
None of the Company's retained earnings at December 31,1979, was restricted as to dividends l on common stock. [ Modification of the G&R Indenture [ The G&R Indenture may be modified under certain conditions without the consent of holders of
- f. the General and Refunding Mortgage Bonds and otherwise with the consent of the holden of 66%%
of all General and Refunding Mortgage Bonds at the time outstanding (or, if one or more but less
#4 than all the series of General and Refimding Mortgage Bands would be materially adversely afected, 3 66%c/c of the total G&R Bonds of the one or more serim so afected). No such modification may (a) affect the payment of principal, premium, and interest on any General and Refunding Mortgage Bonds, or extend the maturity or time of payment, without the consent of the holders of the General and Refunding Mortgage Bonds afected, (b) permit the creation by the Company of any lien not otherwise permitted ranking prior to or on a parity with the lien of the G&R Indenture, or (c) reduce the above specified percentages of General and Refunding Modgage Bonds at the time outstanding.
lt No modification may be made which would conflict with the Trust Indenture Act of 1939 as then in I efect. The Trustee is not obligated to execute a supplemental indenture which would afect its own
, rights, duties, or immunities under the G&R Indenture.
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I 1
f The CAR Trustee If the G&R Trustee acquires any conflicting interest it must either eliminate the conflicting inter-est or resign. There are limitations on the rights of the G&R Trustee in respect of certain payments and property received by the G&R Trustee within four months prior to default. The U&R Trustee . , may become the owner or pledgee of General and Refunding 3fortgage Bonds as freely as if it were - not the G&R Trustee. The holders of a majority in principal amount of the General and Refunding 3fortgage Bonds outstanding may require the G&R Trustee to take certain action, except when forbidden by law or when the G&R Trustee in good faith by its responsible officers determines that such action would i involve the G&R Trustee in personal liability or would be unjustly prejudicial to the other General l and Refunding 5fortgage Bondholders. t
. The OkR Trustee also provides the Company with depository and other normal banking services, including participation in the Company's line of bank credit described in Note D of Notes to Financial 4 Statements included in the Appendix to this Official Statement. Joan T. Bok, Vice Chairman of the Company, is a member of the board of directors of the G&R Trustee.
(* Defaulta under the CAR Indenture i The following are termed events of default: failure to pay principal when due; failure for 30 l days to pay interest; failure for 60 days to pay any sinking, replacement, or analogous fund install. ', ment; default under the First Mortgage Indenture or certain other mortgages (but not including the Indenture); failure for 60 days after notice from the Trustee to perform any other covenant o- agree-ment; and certain events of bankruptcy, insolvency, or reorganization. The Trustee may withhold notice to the Geneml and Refunding Mortgage Bondholden of any default, except in the payment
,. of principal, interest, or any sinking, replacement, or analogous fund imtallment, if its responsible officers in good faith determine that withholding such notice is in the interests of the General and
_. Refunding 3fortgage Bondholders. Evidence to be Furnished Trmtee under the C&R Indenture
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- Evidence is required periodically as to the absence of default in connection with certain annual sinking and replacement fund requirements and as to compliance with certain other terms of the l
G&R Indenture. Further, prior to issuance of additional General and Refunding Mortgage Bonds, l release of property, withdrawal of cash, and various other actions under the G&R Indenture, evidence l ~, as to the absence of default and as to compliance with certain terms of the G&R Indenture is required. UNDERWRITING The underwritem (the "Underwritem"), for whom Goldman, Sachs & Co., Dillon, Read & Co. Inc., l l and Shearson Loeb Rhoades Inc. are acting as representatives, have severally agreed, subject to certain l conditions, to purchase the 1980 Bonds from the Agency at a price equal to 997c of the principal
- amount thereof, plus accrued interest to the date of delivery. The Underwriters have agreed to pur-
! chase all of the 1980 Bonds if any 1980 Bonds are t urchased. After the 1980 Bonds are released for sale to the public, the public offering price and other selling terms may from time to time be varied by l 18 i l l e
the Underwriters, and the 1980 Bonds may be offered and sold to certain dealers (including dealers depositing such 1980 Bonds into investment accounts) and others at prices lower than the public offering priec set forth on the cover page hereof. The Company has agreed to indemnify the Underwriters and the Agency, and the Underwriters have agreed to indemnify the Company and the Agency, against ig certain civil liabilities. TAX EXEMPTION Under Section 103 of the Code interest on obligations of a state or political subdivision or instru-mentality of a state is not exempt from Federal income tax if such obligations are " industrial develop-ment bonds" as that term is defined in Section 103(b)(2) of the Code. However, Section 103 of the ' Code provides that, if certain statutory requirements for exemption are met, the interest on industrial development bonds is not subject to Federal income tax. One of these exemptions provides that if substantially all of the proceeds of an industrial development bond issue are used to provide air or water pollution control facilities or sewage and solid waste disposal facilities, the interest on such bonds is exempt from Federal income tax. Under Section 103(b)(8) of the Code, this exemption is not applicable to any bond if the holder of such bond is a " substantial user" of the facilities or a p "related person" as those terma sre defined in the Code and applicable regulations. In the opinion of Palmer & Dodge, Boston, Massachusetts, Bond Counsel, the interest on the 1980 Bonds is exempt from Federal income taxes under existing law, except for interest on any 1980 Bond during any period while it is i. eld by a person who is a " substantial user" of the Project Facilities or
, a "related person" within the meaning of Section 103(b)(8) of the Code. Under existing statutes, the p# 1980 Bonds and any income derived therefrom, including upon any sale, exchange, or transfer of a 1980 Bond, are exempt from taxation under the laws of The Commonwealth of Masst.chusetts, in-cluding local property taxes in Massachusetts and Massachusetts personal income taxes, but the 1980 Bonds and the income therefrom may be included in the measure of Massachusetts estate and in-
, heritance taxes and of certain Massachusetts corporation excise and franchise taxes. (' LEGAL MATTERS Legal matters incident to the valid authorization and issuance of the 1980 Bonds by the Agency, j and with regard to the tax. exempt status thereof as stated above, are subject to the unquelified approv-
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, ing opinion of Palmer & Dodge, Boston, Massachusetts, Bond Counsel. The text of such opinion will be printed on the 1980 Bonds. Palmer & Dodge is also serving as counsel to the G&R Trustee. Cer-g tain legal matters will be passed upon for the Agency by Gaston Snow & Ely Bartlett, Boston, Massa-g chusetts, Counsel to the Agency. Neither Counsel to the Agency nor Bond Counsel have participated in the preparation of the Appendix hereto. The Agency and the Underwriters will receive opinions with respect to the validity of the Company's obligations under the Loan Agreement and the Series C G&R Bonds from Robert D. Hartshorne, Corporation Counsel, and Robert King Wulff, Assistant General Counsel of the Company. The statements as to matters of law and legal conclusions in this
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1 Official Statement under"The General and Refunding Mortgage Bonds" have been reviewed by Messrs. Hart =horne and Wulff. Statements as to matters of law and legal conclusions in this Official State-ment und(r "The 1980 Bonds","The Loan Agreement", "The Indenture", and " Tax Exemption" have been reviewed by Palmer & Dodge. Certain legal matters will be passad upon for the Underwriters by Ballard, Spahr, Andrews & Ingersoll, Philadelphia, Pen.:sylvania. 9
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e ACCOUNTANTS The financial statements of the Company included in the Appendix to this Omcial Statement have ~ ) been examined by Coopers & Lybrand, independent certified public accountants, and are included j therein in relians upon the accompanying report of said firm and upon their authority as experta l in accounting and auditing. RESPONSIBIIIIT M)R OFMCIAL STATEMENT ! The Agency has consented to the use of this Omcial Statement. The contents of the Oscial State. i ment are the responsibility of the Company, except that the 12ency is responsible for the statements b* herein under "The Agency" and the Underwriters are responsible for the statements under "Under- i writing". The Company haa relied upon Palmer & Dodge, Bond Counsel, as to the statementa under !
" Tax Exempticn" above.
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APPENDIX e~
. New England Power Company
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.g-AVAILABLE INMRMA' HON > The information contained herein as an Appendix to the Official Statement has been obtained
, from New England Power Company (Company). The Company is subject to the informational l requirements of the Securities Exchange Act of 1934 and in accordance therewith files reports and l other information with the Securities and Exchange Commission (SEC). Such reports include infor-l- mation,.as of particular dates, concerning its directors and officers, their remuneration, the principal l j holders of its securities, and any material interest of such persons in transactions with the Company. Such reports and information can be inspected at the Public Reference Room of the SEC at 1100 L Street, N.W., Washington, D.C. A-1 l a
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I TIIE COMPANY The Company is a Massachusetts corporation and a wholly owned subsidiary of New England Electric System (NEES), a registered holding company under the Public Utility IIolding Company Act of 1935 (the 1935 Act). The executive of!!ces of the Company are at 25 Research Drive, West-borough, Massachusetts 01581 (Telephone 617-366-9011). The other operating subsidiaries wholly owned by NEES which, together with the Company, are referred to herein as the NEES System are, Massachusetts Electric Company (Mass. Electric), The Narragansett Electric Company (Narra-gansett), and Granite State Electric Company (Granite State). New England Power Service Com-pany (NEPSCO) and New England Ene.gy Incorporated (NEEI) are also wholly owned subsidi-aries of NEES. The Company is one of several utility stockholders of Yankee Atomic Electric Com-pany, Connecticut Yankee Atomic Power Company, Maine Yankee Atomic Power Company, and g Vermont Yankee Nuclear Power Corporation (the Yankee Companies). Its stock ownership in these companies is 30%,15%, 20%, and 20%, respectively.
- l. CONSTRUCITON EXPENDITURES AND FINANCING The Company's estimated construction es;enditures for 1980 1982 are shown below and include f .- allowance for funds used during construction (AFDC).
'i 1980 1981 1982 Total (In Millions)
Generation $181 $216 4159 $556 Transmisdon & Substations 14 19 16 49 Other Facilities 2 2 4 8 Nuclear Fuel . 8 11 9 28 Total
$205 $248 $188 $641 Totalincludes AFDC of: $ 29 $ 40 $ 51 $120 Expenditures for jointly owned generating facilities, which aro included in the above table, are described under" Additions to Generation". Expenditures of $79 million in 1980, $95 million in 1981, g and $3 million in 1982 for coal convenion at the Brayton Point Station are included in the estimated p generation expenditures. Actual construction expenditures may vary from the estimates because of I
changes in forecasted load, economic conditions, and percentages of ownenhip in jointly owned facili-l ties; cost fluctuations; licensing delays; and other factors which could produce changes in the Com-l pany's plans. (See " Load Growth and NEESPLAN" for information on these matters.) l In addition to the proceeds of the $90 million pollution control financing, the Company expects
; funds required to pay for the construction program will be provided from internal sources and from i) short-term borrowings. It is expected that these borrowings will be repaid from the proceeds of additional permanent securities including capital contributions from NEES. The Company will be I ,
' required to retire $12 million of First Mortgage Bonds which mature on February 1,1981, and $5 mil-lion which mature on June 1,1982. The Company provides for its short-term borrowing needs through the sale of commercial paper and the issuance of notes to commercial banks. In addition, the Company issues notes to NEES. The Company currently has bank lines of credit which aggregate
$88.5 million. Such lines of credit are reviewed from time to time and changes are made to reflect expected borrowing needs. The exact nature, timing, and amounts of future issues and of additional permanent financing have not been determined at this time.
A-2
CAPITAIJZATION The capitalization of the Company as of December 31,1979, and as adjusted is of that date to reflect the issuance of the Series C G&R Bonds as discussed in the note below,is as !allon: As of Decem1 er 31,1979 Actual Pro Forms (In Thousands) Long tenn Debt: First hfortgage Bonds $363,365 $363,365 36.7 % General and Refunding h!ortgage Bonds 99,557 144,557' 14.6 % Total Long-term Debt (See Note G of Notes to Financial Statements for details) 462,922 507,922 51.3 % Cumulative Preferred Stocks (See Note E of Notes to Financial Statements for details) 111,028 111,028 11.2 %
.g Common t,pk Equity:
Common Stock, par value $20 per share 6,449,896 shares authorized and outstanding 128,998 128,998 Premium on rapital stocks 87,207 87,207 g Other paid in capital 128.000 128,000
+! Retained earnings 27,747 27,747 Total Common Stock equity 371,952 371,952 37.5 %
Total Capitalization $945,902 $990,902 100.0 % i
- Assumes the issuance of the Series C G&R Bonds after reduction of $45,000,000 expected to be on deposit with the Trustee in the Construction Fund at December 31,1960.
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r STATEMENTS OF INCOME l The following statements of income for the years 1975 through-1979 have been namined by l Coopers & Lybrand, independent certified public accountants, as set forth in their report elsewhere in this Appendix. These statements should be read in conjunction with the other financial statements and the related notes appeanng elsewhere herein and to which the alphabetical note references below apply. Year Ended Deeemaher 31, 1979 1978 1977 1976 1975 (In humands) Operating revenue (Note K) (608,214 $5N,749 $518,631 $465,631 $434,758 10 Operating expenser: Fuel for generation . 289,656 232,955 234,945 195,523 210,028 Purchased electric energy: Fossil and interchange 59,387 22,179 44,479 35,009 22,934
' Nuclear entitlements 42,335 36,497 34,435 31,099 31,666
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Other operation 44,063 40,297 38,887 34,871 32,250 Maintenance 24,921 17,537 17,074 17,661 14,649 Depreciation and amortization (Notes A and F) 28,700 27,500 26,600 25,600 22,000 Taxes, other than federal income (Note M) 29,651 31,422 31,480 29,764 22,929 Current federal income taxes (Note B) 3,411 22,530 73,501 27,125 6,432 Deferred federal income taxes (Note B) 15,245 2,118 336 1,525 14,095 Investment tax credits-net (Note B) 7,500 6,227 3,861 2,796 1,037 439,262 455,598 400,963 378,020
}I Total operating expenses Operating income .
$44,859 63,355 65,487 63,033 64,668 56,738 Allowance for equity funds used during 3,338 2,388 M construction (Note 3) 12,501 8,885 5,920 g Equity in income of nuclear power companies (Note C) . 3 920 3,635 3,631 3,615 3,473 Other income-net, including related taxes 73 105 (62) (27) 281 Operating and other income 80,b49 78,112 72,522 71,594 62,880 Interest:
.i' Interest on long.terin debt 35,746 33,440 31,587 28,986 27,025 Other (Notes D and K) 4,123 4,680 2,797 1,887 4,364 Intenst to parent company 225 276 Allowance for borrowed funds ased during (8,821) (7,622) '(4,872) (3,494) (1,922) construction-credit (Note 3)
Total interest . 31,M8 30,498 29,737 27,379 29,743 Net income $ 49,501 $ 47,614 $ 42,785 4 44,215 4 33,137 Ratio of earnings to fixed charges (1) 2.94 3.19 3.18 3.62 2.75 Supplemental ratio of earnings to fixed charges (2) 2.70 2.92 2.92 3.11 -2.44 A-4
Notes to Statements of Income (1) In determining the ratios of earnings to fixed charges, earnings were arrived at by adding to net income, excluding undistributed income of nuclear power companies, all income taxes and fixed charges. Fixed charges consist of interest and amortization of debt premiums, discount I !
, and expense on all indebtedness. The pro forma ratio of earnings to fixed charges for the year ended December 31,1979 is 2.47 after giving effect to (a) the issuance of the Series C G&R Bonds, at an assumed rate of interest of 8.09c', after reduction of $45,000,000 expected to be on deposit with the Trustee in the Construction Fund at December 31,1980, (b) an average short-term debt of $34,000,000, assumed to be outstanding during the pro forma year at an effective interest rate of 13%. A difference of Vs% of the assumed interest rate on the pollution covitrol bonds will change .
the ratio approximately .003. (2) The supplemental ration of earnings to fixed charges were arrived at as described above except for the following (a) net income includes undistributed income of nuclear power companies, (b) the pro rata share of interest expense and income taxes of the nualear power companies
.and imputed interest related to the companies fuel supply arrangemente are included in the net earnings available for fixed charges and (c) the pro. rata share of interest expense of the nuclear y
power companies and imputed interest related to the companies fuel supply arrangements are included in fixed charges. The pro forma supplemental ratio of earnings to fixed charges on this basis would be 2.33. - (3) The Company capitalizes, as part of construction costs, an item called allowance for funds used
?* during construction (AFDC), which represents the composite interest and equity costs of capital funds used to finance construction. AFDC is recognized as a cost of " Utility Plant" and, ac-cordingly, is capitalized in the same manner as construction labor and material costs, with off-setting credits to "Other Income" and " Interest". This is in accordance with an established regulatory ratemaking practice under which a utility is permitted a return on and the recovery g of these capital costs through their ultimate inclusion in the rate base and in the provision for depreciation. The composite rates approximate the pre-tax cost of funds (9.84% in 1979,9.24%
in 1978,8.76% in 1977 and 8.50% in 1976 and 1975).
;I Tax benefits on the allowance for borrowed funds used during construction have been normalized
_. and charged to expense (see Note B). N l e l l A-5 4 p 7 ' ' l e "f m' b l m
i Selected Quarterly Information - Unaudited First Second Third Fourth Quarter Quarter Quarter Quarter (In Thousande) g-1979 { Operating revenue $139,807 $132,311 $165,895 $170,201 Operating income 17,029 12,085 16,317 17,924 Net income 13,765 8,824 13,562 13,350 1978 p Operating revenue $129,295 4110,880 $132,756 $131,818 Operating income 18,0M . 13,984 16,371 17,128 Net income 13,035 9,592 12,725 12,262 4*
+' Per share data is nx relevant because all of the Company's common stock is owned by NEES.
MANAGEMENT'S DISCUSSION AND ANALYSIS OF STATEMENTS OF INCOME The following discussion presents management's analysis of the Statements of Income with respect to 1979 and 1978 as compared with their respective preceding years. I Operating revenue of $608 million, derived principally from the sale of electric energy, increased
, by $103 million in 1979 after a decrease of $14 million in 1978. The changes in operating revenue were principally due to fluctuations in fuel costs, which are recovered through the Company's fuel g adjustment clause and rate increases The impact of these factors is summarized in the following table:
Increase (Decrease) in Operating Revenue f 1979 1978 (In Millions) Rate increases 4 10 $8 Fuel recovery 96 (18) Other. (3) (4) l
$103 $(14)
A-6 . l
Tot:1 oper-ting expenses increased by $105 million in 1979 f:llowing c decrease of $16 million in 1978 as shown in the following tab!c: Increase (Decrease) in Operating Expenses 1979 1978 f! (In Millions) Fuel for generation and purchased electric energy $100 $(22) Other operation and maintenance 11 2 Depreciation and amortization 1 1 Taxes, other than federal income (2) 0 Federal income taxes (5) 3 l
$105 $(16)
Fuel for generation and purchased electric energy increased by 34% in 1979 after a 7% decrease I p in such costs in 1978 primarily due to changing fuel prices. IIigher fuel costs in 1979 were largely
~
the result of substantial increases in the price of fuel used for generation and fuel included in pur-l chased power. The lower fuel costs in 1978 were largely the result of being allowed to burn less expen. l sive higher sulphur oil and the availability of a greater share of "old oil entitlements" for imported residual fuel oil purchased during that year. I '. Other operation and maintenance expenses increased $11 million or 199 in 1979 reflecting a
$6 million increase in the cost of maintenance cf generating facilities including costs associated with preparing for and burning coal. Other factors contributing to the 1979 increase were higher trans-mission rents and continued inflationary pressures on all costs. Similar expenses had increased only 3% in 1978 reflecting improvements in cost conttol and productivity, i The fluctuations in income taxes down 15% in 1979 and up 11% in 1978 are primarily due to r changes in taxable income and a reduction in the Federal income tax rate in 1979. More detailed
,, information concerning income taxes can be found in Note B of Notes to Financial Statements.
?. The allowance for funds used during construction (AFDC) increased by $5 million in 1979 and
-' $6 million in 1978. These increases were due to increased construction work in progress and higher AFDC rates. See Note 3 of Notes to Statements of Income.
Total operating nvenue and net income for the twelve months ended February 29,1980, were l $641,671,000 and $48,315,000, respectively. The foregoing figures, which have been pnpared on the
- name basis as the statement of income for the year ended December 31, 1979, are unaudited and, in i the opinion of the Company, reflect all adjustments (consisting only of normal recurring accruals)
{' necessary to a fair statement of the results of its operations for such period. See Note K of Notes to Financial Statements. The foregoing figures do not reflect the effect of a proposed rate increase filed by the Company on February 20, 1980, which, if granted, would be retrocetive to January 2,1980. (See footnote (d) under" Rates".) l A-7 l e
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I OPEFEI1NG STAT 1SUCS Year Ended December 31, 1979 1978 1977 1976 1975 g Bocacss or Exznar (TuotsAxos or Kws): ' Net Generation-Thermal . . 11,631,788 12,765,597 11,152,702 11,065,277 11,182,411 Net Generation-Conventional liydro 1,422,315 1,346.073 1,596,709 1,789,011 1,504,676 Generation-Pumped Storage . 331,575 354,718 227,003 259,107 361,312 Nuclear Entitlements . 2,409,483 2,603,776 2,458,568 2,631,962 2,422,128 Purchased Energy from Nonaffiliates . 2,041,926 903,810 1,829,260 1,652,791 1,249,177 Energy for Pumping . (476,053) (506,933) (322,311) (367,195) (509,592) Total Generated and Purchased . 17,361,034 17,467,041 16,941,931 17,030,953 16,210,112 Losses, Company Use, etc. . 707,996 797,996 709,328 664,639 691,842 Total Energy Bold 16,653,038 16,669,045 16,232,603 16.366,314 15,518,270 BALas or Examor (TuocsAxos or Kwn):
. Besab
[ '- Afillisted Companies 15,801,903 15,479,356 15,076,143 14,944,016 14,157,675 Less-Generation by Affiliated Cc;npany (A) (582,993) (552,800) (558,002) (500,327) (782,288) Net Sales to Afillitted Companies . 15,218,910 14,926,556 14,518,141 14,443,689 13,375,387 Other Utilities . . 142,948 279,016 279,834 356,701 719,310
+ Municipals 1,254,583 1,426,513 1,375,867 1,479,582 1,351,355 Total Sales for Besale . 16,616,441 16,632,085 16,173,842 16,279,972 15,446,052 Ultimate Customers . . . 36,597 36,960 58,761 86,342 72,218 Total Energy Bold 16,653,038 16,669,045 16,232,603 16,366,314 15,518,270 OrsaArswa Bavancs (IN TuocsAxos):
Bevenue from electric sales
. Besale:
Altlliated Companies . 8 599,325 8 498,859 8 502,584 8 444,730 8 399,999
'~ (45,431) (40,601) (40,416) (37,028) (41,802)
Less-0 and T credits (A) . Net Bales to Afilliatal Companies . 553,894 458,258 462,168 407,702 358,197 Other Utilities . 5,107 7,256 13,226 Id,895 30,709 Municipals 44,948 41,471 44,081 40,579 37,794
- . Total Bevenue from Sales for Besale . 603,949 506,985 - 519,475 467,176 426,700 7 Ultimate Customers ... 1,466 1,267 2,215 2,744 1,085 Befund provision . . . . (5,500) (10,900) (11,500) (10,700) -
Total Bevenue from Electric Bales . 599,915 497,352 510,190 459,220 428,683 Other Operating Bevenue, principally rentals . . 8,299 7,397 8,44) 6,411 6,073 Total Operating Bevenue . 8 60s,214 8 504,749 8 518,631 8 465,631 8 434,758 MArtucu DzuAxo-Kw-Oss Hoca PEAK 3,159,000 3,078,700 3,171,800 3,154,900 2,979,800 (A) The generation and transmission facilities of an affiliate are operated as an integrated part of j the Company's power supply and the af!11iate receives credits (G and T credite against its l power bills for all costs of facilities so integrated. - A-8
i NEW ENGLAND q U t d !' POWEA COMPANY
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r THE COMPANY'S BUSINESS The Company's business is principally that of generating, purchasing, transmitting, and selling electric energy in wholesale quantitim. Of these salas of energy,91% are to affiliated companies for - resale, and 99 to municipal and other utilities for resale. The Company is the whalesale supplier of substantially all of the eletrie energy requirements of its retail affiliates, Mass. Electric, Narragansett, and Granite State. Narragansett, however, receives credits against its purchases of power from the Company for the cost of generation from its Providence units which are integrated with the Company's facilities to achieve maximum economy and reliability. Discussions of generating properties, load gmwth, and fuel supplim include the related properties of Narragansett. Purchases, sales, and revenues are on the basis of the Company's net sales to Narragansett. PROPERTIES The properties of the Company include fossil-fuel base load and intermediate load steam-generat-ing units; conventional and pumped storage hydroelectric stations; internal combustion peaking units; entitlements '.n the nuclear generating units of the Yankee Companies; and an integrated system of de transmission lins and substations (see Map). This integrated system is intercounected with other major electric utilities in the Northeast region, including utilities in New York Stata, and is also indirectly interconnected with utilities in Canada. For details of mortgage liens on tha Company's properties, see Note G of Notes to Financial Statements.
', The Company's net capability at December 31,1979, and the net generation for the twelve months ended December 31,1979, frem all sources, including entitlements in nuclear generating companies, were as follows:
E Energy Net Net
- ;- Source location Source Capability Generation 1 - Fossil Fuel Units
'. Brayton Point Station Somerset, Mass.
M Unita 1,2, and 3 Oil-Coal (a) 1,162 5,688 l5 i Unit 4 Salem Harbor Station Salem, Mass. Oil 455 2,319 Units 1,2, and 3 Oil-Coal (a) 317 1,723 Unit 4 Oil 455 1,841 Other System Stations (b) Mass., Me., and R.I. Oil-Gas (c) 434 644 l l Hydroslectric Stations r Conventional Mass., N.H., and Vt. Water 589 1,422 Pumped Storage Bear Swamp Rowe, Mass. 602 (145)
^
Nuclear Entitlements Conn., Me., Mass., Nuclear 384 2,410 and Vt. Other (d) 57 1,427 Total 4,455 17,329 (a) See "Convenion to Coal" for information relating to these units. A-10 t
(h) Includes (i) N:rragansett units which are cperated as an integr:1 pr,rt of the Company's power supply; (ii) an interest in a jointly owned unit in Yarmouth, Miae; and (iii) diesel and gas turbine units. (c) Three generating units at Manchester Street, Providence, R.I. with a net capability of 143 MW burn oil or, when available, gas. Two of these units burned gas for four months in 1979. An- ,f
, other generating unit with a net capability of 101 LiW located at South Street, Providence can be converted to burn coal, if current environmental restrictions are eased.
(d) Includes megawatts and megawatthours from contracted purchases (some of which are life of the unit contracta and others for terms of years), unit sales contracts, economy interchanges through the New England Power Exchange, and other minor purchases and sales. The Company has approximately 2,230 circuit miles of transmission lines and 108 substations. Additionally, the Company has contractual arrangements with other utilities providing for the trans-mission of power.
, Each of the Yankee Companies owns a nuclear generating plant. The utility stockholders, in-cluding the Company, purchase the entire output of these plants in the same percentages as their respective stock ownerships. The purchasing companies pay for such output on the basis of their . respective shares of total fixed and operating costs of the plants plus a return on equity. Each of the D utility stockholders has agreed, subject to certain conditions, to provide its entitlement percentage of the capital requirements of each Yankee Company. The Company uses the equity method of account-ing for its investments in these companies which are unconsolidated subsidiaries. The cost to the Company of deedmmissioning generating units owned by the Yankee Companies has not yet been determined. It is expected, however, that all such costs will uWately be included in the cost of p electric energy generated by such units and recovered through the rate making process.
The 175 MW unit of Yankee Atomic Electric Company in Rowe, Massachusetts, experienced a turbine failure during February. The unit will not return to operation until the tutbine is repaired or replaced. The repair of the turbine is currently being assessed, but it is estimated that repair will take a minimum of four months. ( The Company is a member of the New England Power Pool (NEPOOL) which, under the t NEPOOL Agreement, provides for coordination of the planning and operation of the generation and J transmission facilities of its members and incorporates generating capacity reserve obligations, provi-
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sions regarding the use of major transmission lines, and provisions for payment for facilities usag-
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. Approximately 99% of the generating capacity in New England is npresented in NEPOOL. The NEPOOL Agreement further provides for New England-wide central dispatch of generation through p the New England Power Exchange. Under NEPOOL, operating and capital economies are made possible and reserves are established on a region-wide rather than an individual company basis.
Therefore, the electric energy available to the NEES System and other participants is detrzmined by the aggregate available to NEPOOL. At the time of maximum demand, which occurred ou Decem-ber 19,1979, NEPOOL participanta had 21,587 MW of capacity to meet the pool's peak load of 15,169 MW-
/ LOAD GROWTH AND NEESPLAN
'- In 1979 the peak load of the Company was 3,159 megawatts and occurred on December 19. The summer peak was 3,025 megawatts and occurred on August 2. The growth of System load is the subject of a comprehensive load forecasting program, with continuing review based on current infor-A-11 O
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mation and developments. Plans for providing additional generating capability are developed fmm these load forecasta For a number of years prior to the vrinter of 1973-1974, the Company and the NEES System had consistently experienced a compound growth rate approaching 8% per year. Like mont util&s f in the United 8tates, the NEES System experienced an abrupt and significant reduction in load as aw a result of various events related to the international oil crisis of 1973-1974. The 1974 System peak was 5.7% below the 1973 level. Since 1974 System peak load growth (adjusted to normel weather conditions) has increased at an average rate ** 3% per year. Projections of long. term peak demand indicate continued growth at this rate in the absence of a concerted load management and co n ervation program -such as that proposed in NEESPLAN discussed below. Bec.use of the sudden reduction in rate of growth as compared with the pre-1974 period, the Company currently has capacity, built on the basis of earlier load forecasts, which is in excess of s what would otherwise be necessary to meet present load. A a result of uncertainties in future load growth, it is not clear how long this capacity, substantially built at pre-oil-crisis costs, will continue 2 to be adequate. If the growth rate were to continue at 3%, present capacity would be sufficient to b meet projected load and reserve requirements through the year 1985. Completion on time of the new unita described below in which the Company is a joint owner would provide sufficient additional capacity to meet a 3% growth rate until the late 1980's. Achievement of the load management and conservation goals of NEESPLAN will extend this date into the 1990's.
. In 0:tober 1979 a 15-year plan for the NEES System companies (NEESPLAN) was announced.
The plan is based on two principal objectives: to minimize increases in the cost of electricity to
. customers, and to reduce System reliance on foreign oil. The System will undertake, through a major 4,, conservation and load management program, to reduce its annual peak load growth to 1.9% from a 'f- projected 3.1%, thereby reducing substantially the need for additional new generating capacity. It ',~
is estimated that such reductions would result in a decrease in the Company's capital requirementa during the period 1980 to 1995 of approximately 40%. 70 The conservation and load management program will include new rate incentives to encourage
> ahifts of electricity use from peak periods of demand to of peak periods. and special rates for cus-temers who install heat storage devices. In addition, NEESPLAN contemplates the use of an auto.
matic load control system. NEPSCO has patented technology for such a system which is being developed under contract with Emerson Electric Co. of St. Louis, Missouri. Additional elements of the conservation and load management program involve solar opplications and cogeneration.
,1 With achievement of the conservation and load management goals of NEESPLAN, the Company will still require the full amount af additional capacity represented by its interests in the units de-scribed below under Additions to Oceration in order to meet the reduced System load during the period through 1995. The need during that period for new capacity in addition t) these units wou!d be limited, however, to 200 megawatts on the basis of NEESPLAN projections. It is proposed that
. 100 megawatts of this additional new capacity will utilize energy sources sich as lowhead hydro, the burning of solid waste and wood, and wind power.
A second major objective of NEESPLAN is to reduce the Company's reliance on foreign oil for power production from 73% of total energy requirements to 10% by 1995. This would be accom.
' plished (i) by conversion to coal of six oil-fired units totaling 1479 megawatts (see " Conversion to
, A M.2
Co:l", below) cnd (ii) by providing a m jor portion of tha rem:,ining oil requirements from domestic sources developed through expansion of the exploration and development activities of NEEI (see
" Fossil Fuel Supply-Oil Prucurement Program" below). The conversion of the six oil. fired units would reduce the Company's annual oil requirements by 15 million barrels.
h ADDmONS 11) CENERATION To provide for new generating capacity, options available to the Company include additional nuclear or coal capacity, expansion into alternate sources, and the possible purchase of Canadian energy. The other possibilitis, oil. find and gas. find generation, are effectively precluded by Fed-eral law, except for peaking use. The Company has elected to meet its requirements for major new ' I generating capacity through participation with other New England utilities in the construction, under joint ownership agreements, of the nuclear generating units shown in the following chart. These units are designed to meet New England's it. in power supply needt under plans developed by NEPOOL. Environmental and safety standards must be satisfied before and after construction of new large generating units. Afany of these standards and the technology available to meet them are changing p rapidly. To meet these standards on a continuing basis, changes may be requind in planncd units, as well as modifications in units already under construction or in operation. Furthermore, it has been necessary for the Company to make substantial investments in new facilities prior to the issuance 4 of required construction permits and operating licenses, with no assurance that such licenses will be issued. Aforeover, the lead owners of the proposed nuclear units, in which the Company is joint owner, f, may defer completion of these units beyond the scheduled dates. If completion of a proposed unit is 4 ' delayed for any reason, the estimated total cost will increase or in the extreme case might require the Company to turn to other sources. The Company estimates that in 1980,1981, and 1982 it will invest $89 million, $112 million, and
$116 million, respectively, including AFDC and fuel, in the proposed nuclear units shown below:
Capetty Estimated { Estimated Mesawatta Total Company Additional
> Date of Company Company Espendi- Amounta e Unit Imcation Operation (s) Total Portion Cost tures(b) Committed (c) 'f~ (In Millions) (In Millions) (In Millions)
Bembrook No.1 N.H. 1983 1,150 115
, 8288 8 96 835
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Seabrook No. 2 N.H. 1985 1,150 115e Pilgrim No. 2 Mass. 1985 1,150 128 217 34 S1 g 25
;. Millstone No. 3 Conn. 1986 1,150 140 all 87
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Montague Nc.1 Mass. (d) 1,150 149' Montague No. 2 Mass. (d) 1,150 149 3223 881 m=
. (a) Afost recent official estimate by lead owner (see " Pilgrim Unit No. 2" below).
,' (b) Included in construction work in progress, through December 31,1979.
(c) Commitments to manufacturers, contractors and others. (d) Date of opera' ion and cost indefinite. l , A-13 6
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t I Although the Company believes nuclear power is the most viable and economic means of generst-ing additional electricity at this time, everts at Three 31ile Island Nuclear Unit No. 2 in Pennsylvania ) (T311) have caused widespread concern about the safety of nuclear generating plants. The T3fI incident has prompted extensive public controversy concerning the further development of nuclear 1 energy in the United States. A presidential co nmission which investigeted the T311 incident has - issued numerous recommendations on safety aspects of nuclear power, and the President has sup-ported implementing many of these recommendations. The NRC has already instituted new require-ments in risponse to the T31I ineiilent and is considering significant further revisions. The NRC announced that, until it completed its review of the T311 incident, it would not issue any new construction permits or operating licenses for nuclear facilities. On February 29, 1980, the NRC issued a license for fuel loading and low power testing to a utility. The T3fl incident has pacipi-g tated increased opposition to nuclear power and the filing of legislation in Congress and various state legislatures to severely mstrict or eliminate nuclear power as an energy source. While the ultimate effwt of this controversy cannot be predicted, it is likely to cause costly delays and modifications to the plannel units in which the Company has an interest. 4, Seabronk Units The lead owner of the Seabrook units, Public Service Company of New Hampshire (PSNH),
- has acquired the necessary permits for construction of the units. On December 31,1979, Unit 1 and
- that portion of the project common to both units were about 31% complete and Unit 2 was about 6%
l, complete. PSNH has experienced difficulty in obtaining external finanting and in maintaining cash flow adequate to fund continued construction of the units. Currently, PSNH owns 50% of, and finances one-half of the total construction costs for, the Seabrook units.
' I' PSNH has attempted to reduce its ownemhip interst in the Seabrook units by selling an aggre-
! gate 22% of the units to other utilities. PSNH has advised the Company that this reduction would enable it to continue construction of the units on the current schedule for completion. PSNH's offer ,p to sell resulted in commitments to purchase only 15% of the 22% offered. Before these transfers s can be completed, the transfem must be approved by the NRC and the 3fassachusetts Department of ': Public Utilities (31DPU). PSNH believes that the proceedings before the AfDPU will not be com-pleted before June 1980, at the earliest, and possibly not during 1980. In order to alleviate its financial situation, PSNH has filed with regulatory bodies for rate in-creases to improve revenues, and has received interim rate relief sufficient to permit external financing.
.:. PSNH is also considering the possibility of deferring for up to four yeam the completion of Unit 2 ?
or both units as a means of reducing its inenediate cash needs. Another joint owner, The United Illuminating Company (UI), currently owning 20% of the l' l units, has offered to sell 10% of the units and has received a commitment to purchase 3%. f _ The Company did not elect to purchase, on the terms offered, any of the ownership interests offered by PSNH or UI. l PSNH has obtained from certain Seabrook participants, including the Company, advance pay-ments to be applied against a portion of their shares of the estimated construction costs of the Seabrook l units. , A-14 - i
1 l Construction of the Seabrook Units miy be suspended if court epptels or other ch-llenges in licensing or other proceedings tre decided cdversely. An NRC decision in 1976 not to susynd the construction permit for the units has been appealed to the U. S. Court of Appeals for the First Circuit. Millstone Unit No. 3 bl 1 This unit is being constructed on a site in Waterford, Connecticut where two other nuclear units 1 are currently located. The NRC issued a construction permit for this unit in 1974 and on December I 31,1979, the unit was about 32c/c complete. Due to unfavorable rate treatment in Connecticut, sub-sidiaries of Northeast Utilities, the lead owners of the unit, were forced to defer completion of the unit until 1986. In light of this deferral, construction activity on this unit has been reduced. Pilgrim Unit No. 2 This unit is to be constructed on a site in Plymouth, 3fassachusetts where one nuclear unit is currently located. The NRC has not issued a construction permit for this unit and construction has not started. Boston Edison Company, as lead owner of the unit, is currently developing a revised construction schedule based on recciving a construction permit in 1981; on that basis the unit will commence commercial operation in 1987. The SIDPU has investigated the capacity needs of Boston b Edison and the construction program required to meet those needs. A decision from the AIDPU is expected in the near future. 4 Montague Unite
, The NRC has not issued construction permits for these units and construction has not started.
f4 In June 1978, subsidiaries of Northeast Utinties, lead owners of the units, suspended licensing and virtually all other activities on these units indeSnitely. Cancellation of NEP Units
' The Company had reached a tentative agreement in 1974 to acquire a site owned by the Federal
[ tovernment in Charlestown, Rhode Island, to locate two planned 1150 31W nuclear units. In June 1979, the Federal agency responsible for the disposition of this property issued a decision rejecting
, use of this site for a nuclear power plant. The Company challenged this decision in the U. S. District
.?- Court for the District of Columbia. On December 4,1979, the Court dismissed the Company's
/ challenge, and the Company has decided not to appea'. chis adverse decision. On December 17, 1979, the Company, as lead owner, cancelled these units. The Company had invested about $31 mi!! ion in
'. the project prior to cancellation. See Note F of Notes to Financial Statements with respect to the accounting for and recovery of the Company's investment in these units.
CONVERSION TO COAL NEESPLAN contemplates the conversion to coal of six of the Company's large steam generating units which have been fueled by imported residual fuel oil: three units at '3rayton Point (1162 3fW) 1 and three units at Salem Harbor (317 3IW). Completion of this conversion program would reduce
}. the Company's annual oil requirements by 15 m.dion barrels. There is also the possibility that a unit et Providence (101 31W) may'be converted to coal.
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A program to convert Units 1,2, and 3 at Brayton Point to long. term coal burning in confor. mance with applicable state and Federal environmental requirements has been appmved by Federal and state environmental agencies. The Department of Energy (DOE), which had previously ordered _ the Company to stop burning oil at these units, has concurred with the program. Work began on the Brayton Point program in January 1980, and coal burning on a permanent basis is scheduled by the . end of 1981. The estimated cost of this conversion is approximately $150 million. The work includes major modifications of the units, as well as installation of an extensive pollution control system. In connection with the long. term conversion of the Brayton Point units, the Comp,any requested, and the Environmental Protection Agency (EPA) has granted, permission for the interim conversion to coal of two of these units, using existing facilities, until August 1980. After the interim coal burn, the coal handling system at Brayton Point will be removed from service for rebuilding on a permanent basis. This interim coal burning, which began December 1,1979, will reduce oil requirements by approxi-mately 420,000 barrels per month and, based on current fuel prices, will save approximately $4 mil. lion per month for customers of the NEES System. The economic and environmental feasibility of converting the Salem Harbor units to coal has not
.- yet been finally determined. If a more thorough analysis proves its economic practicability and the p Company determines to convert the Salem Harbor units to coal, such conversion will require approvala similar to those required for Brayton Point. The Company has applied under the Federal Clean Air Act for permission to burn coal in two units at Salem Harbor on a temporary basis. The granting of this pending application would require action by the President of the United States. For details, see " Environmental Reauire er.ts- Air".
Prior to the 1978 DOE order, referred to above, prohibiting the burning of oil at the Brayton Point units, the Faleral Energy Administration (now DOE) had' issued a formal notice of its in.
; tention to issue such orders for Salem Harbor Units 1,2, and 3 as well as the Brayton Point units. In
.p a proceeding which is still pending in the U.S. District Court in Boston, the Company has opposed
/ such action by DOE. No prohibition order has been issued for the Salem Harbor Units. The Com-U nany would continue to oppose any such order, unless conversion of the Salem Harbor Unita to coal is determined to be economically and environmentally feasible. ,
[~ FOSSIL FUEL SUPPLY Except for the December coal burn at Brayton Point and a four month use of natural gas at Providence, the Company burned oil in all its fossil fuel generating units during 1979. Of the 19.2 million barrels of residual fuel oil used, approximately 86c/c was imported. Like all other New England utilities, the Company haa experienced a precipitous rise in the
cost of oil since the oil embargo of 1973. From an average cost in that year of $3.77 per barrel, the average cost has increased to $15.19 per barrel burned in 1579.
The price of residual fuel oil purchased by the Company generally follows the trend of the world crude oil prices, which are determined primarily by the Organization of Petroleum Exporting Countries (OPEC). After stabilizing prices in 1977 and 1978, OPEC announced substantial increases
. In 1979 resulting in a year.end cost tc rhe Company of $21.27 per barrel.
The availability and price of oil to the Company may be affected by many facton, including actions of the Federal government, and actions of foreign governments in oil producing and refming A.16
countrim, actions of suppliers in allocating gupplies or honoring their contracts, as well as the success of NEEI's oil and gas explorstion anii development program described below. Over tl'e past several years,. the Federal governstat has implemented a variety of programs to control the price and avail-ability of oil. While some programs have been discontinued or placed on a standby basis, many are y still in efect. Changing conditions or new poli'ies could lead to modifications in Federal oil controls. The Company believes, however, that new programs would recogmze the essential service pmvided by public utilities. The price and availability of oil may also be afected by state and Federal air pollution control requirements These requirements are r2 viewed and approved by EPA. In 1979 the EPA appmved i an increase from 1% to 2.2% in the sulfur content in fuel oil burned by the Company at Brayton
- Point and Salem Harbor. For details, see " Environmental Beqmrements".
Oil Procuressent Program The Company has consistently pursued an aggressive buying policy to obtain the lowest available prica for oil. It has continued to secure a reliable supply of oil through use of a flexible fuel buying
. program and oil storage facilities.
U The Company obtains its oil requirements throlgh short term contracts with oil suppliers and purchmaaa on the spot market. Its contracts provide for manmum annual purehsses (21.6 million s barrels in 1979) and minimum annual purchases (8.2 million barrels in 1979), thus enabling the Company to reduce its contract purchase in the event of favorable spot market prices or when coal 4, or gas burning is permitted. These contracts have been a major factor in helping the Company main-
*? tain one of the lowest average fossil fuel costs in New England. The Company expects a significant narrowing between the manmum and minimum quantities which can be negotiated for contracts in 1980 and subsequent years.
Oil storage facilities are currently maintained by the Company and Narragansett with total capacity of approximately 2.7 million barrels. In the past, the Company has been able to lease addi-( tional storage facilities as the need arose.
,. New England Energy Incorporated (NEEI) was formed as a wholly owned subsidiary of NEES j in 1974 as part of the Sy. tem esort to secure reliable, long term supplies of fuel at reasonable cost to e the System's customere. NEEI, in partnership with Samedan Oil Corporation, a subsidiary of Noble Affiliates, Inc., has engaged in oil and gas exploration and development in the United States, includ-M ing osshore leases. As of December 31, 1979, NEEI's share of the partnership's probable reserves
- of oil and gas, measured in equivalent barrels, was approximately 11 million barrels, approximately 8 million of which were pmven reserves, based on estimates by NEEI's consulting geologist. A large l percentage of these reserves is natural gas.
NEEI's activities are regulated by the SEC under the 1935 Act. With SEC approval, NEEI has
; sold oil and gas produced fmm its exploration and development program (NEEI Production) and used r
the proceeds to purchase residual fuel oil for sale to the Company. Through December 31, 1979, NEEI had sold approximately 643,000 equivalent barrels of its production resulting in savings of about $1,500,000 passed or to be passed dimetly to the Company's customers. Total NEEI production for 1979 was approximately 475,000 equivalent barrels, and the estimate for 1980 is approximately
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1 one million equivalent barrels. As this production im reases, NEEl expects to negotiate additional methods of ecnverting NEEl's btu entitlements, whether in the form of crude on, gas, or gas con-densate, into reliable supplies of fuel oil for the Company at advantageous prices. One such arrange- - ment has already been agreed to under which NEEl's entitlement to gas condensate from an offshore prospect will be delivered by pipeline to an oil company. In return, the oil company will supply fuel
- oil to NEEl for delivery to the Company.
NEEl also purchases fuel oil under contract for sale to the company, anil has authority to, engage in various other procurement and inventory activities for the System. Coal The Company had available at December 31, 1979, approximately 217,000 tons of environ-t mentally nonconforming coal that is the btu equivalent of 812,000 barrels of oil. Currently, the Com-pany is burning available coal with regulatory approval and making purchases on the spot market. The Company and NEEl are engaged in discussion with a number of coal mining and development interests to secure a reasonably priced supply of environmentally conforming coal for future require-ments, including possible long. term supply contracts. It NUCLEAR FUEL SUPPLY As noted above, the Company participates with other New England utilities in the ownership of several nuclear units. The respective utilities primarily responsible for these units must arrange advance commitments for certain stages of the nuclear fuel cycle. The Company has been advised by those responsible for the units now in operation that adequate near-term commitments have been made for uranium concentrate, conversion to hexafluoride, enrichment of that gas, and fabrication of fuel
,- assemblies. They anticipate that these contracts will be renegotiated or replaced as their expiration 4 dates approach. The prices and terms of these new commitments cannot he predicted at this time.
-f The lead owners of the m: clear units that are planned or under construction will also be negotiating
', and contracting for future commitments related to each of th(se elements of the fuel cycle. There
, have been instances of supplicm defaulting or refusing to perform in accordance with their contractual g commitments. !
% Federal authorities have deferred indefinitely the commercial reprocessing of spent fuel and are l currently developing policies for its disposal. Resolution of these issues could eventually affect the
! fuel s.upply and operation of the nuclear units in which the Company participates. These nuclear units all have on-site storage capacity for spent fuel through at least the late 1980's.
. REGULATION l E The Company is subject to the jurisdiction of the state commissions of Massachusetts, New Hampshire, and Vermont. Participation in joint ownemhip pmjects in other states subjects the Com-l pany to the jurisdiction of additional state regulatory bodies. As a subsidiary of a registered holding
, company, many of the Company's activities are subject to the jurisdiction of the SEC under the l .. 1935 Act. i , in New Hampshire a statute pmhibits a company engaged in the generation of electrical energy l by water power within that state from transmitting such energy outside of New Hampshire unless the company first obtains the consent of the New Hampshire Public Utilities Commission. The Company now exports power, such consent to the extent deemed necessary having been obtained. The Com-l A 18 l k
mission has initi:ted an investigation into uhether or not it should e.lter its former epprovals, end hearings are currently in prognss. The Company is opposing any export limitation and has filed a motion to dismiss for lack of jurisiiction. l*nder the Federal Power Act, the Federal Energy Regulatory Commission (FERC) has juris-q diction over the Company with respect to certain rates, accounts, and hydmelectric facilities. In 1979, the Company received lung-term license renewals for three of its hydmelectric facilities. All of the Company's hydruelectric facilities now have long-term licenses with expiration dates ranging from 1993 to ?)20. In February 1980, an intervenor filed a motien for reconsideration of the FERC order issuing a long-term license for one of these facilities (the Wilder Project). The NRC has broad jurisdiction over nuclear units. All existing plants must meet NRC's envimn- , mental and safety requirements. Following the T311 incident, the NHC conducted an intensive review of the design and operational aspects of nuclear power plants and the emergency procedures for coping with potential accidents. As a result of the review, limited shutdowns are required at nuclear plants of the Yankee Companies in order to make certain safety modifications. See " Additions to Generation" for further information concerning nuclear plants. In 1978 the Publie Utility Regulatory Policies Act was enacted by Congress. The legislation pro-D vides for, among other things: state commission consideration of Federal utility rate standards,
' including those relating to cost-of. service pricing, declining block rates, time-of-day rates, interruptible service rates and master metering; provisions as to power pooling, interconnections, and wheeling of
^ power; provisions for review of the recovery of fuel costs through fuel adjustment clauses; restrie-tions and penalties on the use of oil as a boiler fuel in certain existing and new electric power plants; and requirements for utilities to inform residential customen about the installation of energy-saving y* devices and to participate in the financing thereof. The full effect of the act on the Company can-not be predicted at this time because of the complexity of the legislation and uncertainties concerning its interpntation and implementation.
The Company intends to keep within the Federal voluntary wage and price standards as it
., understands them. The Company cannot prediet the exact effect on its operations of these standards,
} Sut believes that any impact in 1980 will be minimal.
RATES
'I
' The Company's resale to its affiliates and others is subject to the jurisdiction of the FERO.
~
The Company's rates contain a fuel adjustment clause which automatically allows the rates for sales of power to be ailjusted on a currvnt basis to refleet changes .:n the Company's cost of fuel. N Portions of the Company's revenue (totaling about $146 million at December 31,1979) for 1976,
' 1977,1978, and 1979 are subject to refund. A reserve for possible refunds has been estimated and recorded. See Note K of Notec to Financial Statements for a more detailed description of potential nfund obligations.
The tabulation below lists the Company's applications to the FERC for changes in its wholesale rates since 1976. It shows in each case the amount, on an annual basis, of the proposed increase or { decrease from the existing rate level, the date on which the proposed new rate became effective subject to refund, and the an mal amount of increa.se or decrease being collected pending final order by the Commission or, in the case of W.1, in accordance with such final order. A-19 h %
$ 9
\ V,: * ,
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., - 6
l Rate Cosnpany Increase Arnount of Hate (Decrease) Effectise Increase (Decrease) Deelsnation Requested Date (Annual Basis)(e) R 10 $39,800,000 31-76(a) $39,800,000 , R-11 $ (500,000) 2-1-77(b) $ (500,000) R-12 $14,300,000 6-1-78(b) $14,300,000 W-1 $ 1,200,000 7-1-79(c) $(3,700,000) W-2 $50,900,000 (d) - ta) On July 19,1979, the FERC issued a decision which reduced the requested R,-10 rate increase by about $21 million and would result in the Company having to refupd about $19 million collected U during the 11 months the rate was in effect. The company has filed an appliattion for rehearing with the FERC and is awaiting a decision on the app:ication.
. (b) The H-11 and H-12 rates were collected subject to refunil from February 1,1977, through May 31, 1978, and from June 1,1978, through June 30,1979, respectively. Initial decisions by the g FERC Administrative Law Judges have been issued which, if adopted by the full Commission, +- would result in reductions in the rate levels and refunds to customers. Exceptions to the initial decision in the R 11 case were filed by the Company and the interrenors, and the Company plans to file exceptions in the R-12 case.
(c) A settlement of the W-1 rate case was nache I with the interrenors and approved by the full Commission during September 1979. As a result revenues collected since July 1,1979, are no longer subject to refund. e (d) On November 1,1979, the Company filed its new W-2 rate to be effective January 1,1980. On
-P December 31,1979, the FERC issued an order granting summary judgment with regard to cer-tain issues presented in the filing and suspending the effective date of the increase until June 1, 1980. The order had the effect of reducing the increase by about $6 million. The Company filed an application for rehearing on the summary judgment and requested a shorter suspension, f, period. On February 13, 1980, the FERC denied rehearing but indicated that, if the Company
~
- should elect to make a supplementary filing, it v ould consider granting an effective date of January Y 2,1980, with respect to that portion of the W-2 increase ieflecting costs of conveding to or burn-ing coal. On February 20,1980 the Company made such a filing.
(c) The Company has established a reserve for possible refunds associated with the R-10, R-11, and
; H-12 rate cases. The after-tax cost of the provision for reserve has been charged against net income.
)
ENVIRONMENTAL REQUIREMENTS The Company is subject to Federal, state, and local regulation of, among other things, air and water quality; storage, transportation, and disposal of hazardous substances and wastes; and environ-mental land use restrictions. All agencies of the Federal government must prepare, for all major Federal actions significantly affecting the quality of the human envimnment, a detailed statement of the environmental impact of each action. The New England states have environmental laws which require various agencies to pre-A 20
pire reports of the environm:ntr.1 imp ct cf certain proposed actions; the Massachusetts' statute mandates minimization of envimnmental impact in connection with various state actions. In Massachusetts, before electric generation and transmission facilities am constructed, the Mas-sachusetta Energy Facilities Siting Council must approve the pmposed construction location. In It
' cases where an approval for a facility by a state or local agency has been unduly delayed, the Council may issue a certificate of environmental impact and public need, which would eliminate the necessity for such agency's approval.
Other New England states require, in certain circumstances, regulatory approval for site selee-tion or construction of electric generating facilities. Connecticut, Maine, Massachusetts and Rhode Island also have programs of coastal zone management which might restrict construction of power plants and other electrical facilities in coastal areas. As discussed above, the Company is converting three units at Brayton Point to coal. Environ-mental expenditures relating thereto were $1 million in 1979 and are estimated at $50 million and
$30 million for 1980 and 1981, respectively. Additional expenditures will be required if the Salem Harbor Station is converted to coal burning.
p' Pumuant to an agreement with certain Federal and state agencies and private environmental groups, approved by the FERC, the Company is constructing fish passage facilities at one of its dams on the Connecticut River. Expenditures for this purpose were approximately $2.3 million in 1979 and are estim'ated at $7.0 million in 1980, and $1.0 million in 1981. Fish passage facilities will also be constructed at two upstream dams if salmon return in mufficient numbers to the Connecticut p River. The total cost of these additional facilities is estimated at $15.8 million. In 1979 the Company received EPA approval of the existing water intake system for Salem Harbor Station and will apply shortly for similar approval for the Brayton Point Station. The Company may be required by the EPA to make structural modifications to the water intake system , at its Brayton Point Station. No cost estimate is currently available.
; The' Company estimates additional capital expenditures for environmental control facilities at
$5.8 million in 1980, and $6.0 million in 1981.
e -[ Air 2 Pursuant to Federal regulations, each New England state has issued an implementation plan s that limits air pollutants emitted from facilities such as guerating stations. The EPA has issued
# regulations which are not currently in effect concerning the prevention of significant deterioration s of air quality in areas where the existing air quality exceeds minimum ambient air quality standards.
The EPA has also issued regulations requiring the states to revise. their regulations to provide for the continued maintenance of ambient air quality standards. The New England states are revising their pollution control regulations to conform to these requirements. It is possible that revised ngulations could restrict possible future fossil-fired plant siting or advenely affect fuel selection. [' In August 1979, the Company applied to the Governor of Massachusetts for a temporary emer-gency suspension of certain portions of the Massachusetts implementation plan. The suspension would allow two units at Salem Harbor Station to burn coal on a temporary basis in order to alleviate a regional energy emergency. A public hearing was held August 24,1979, and on September 4,1979,
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i the Goventor petitioned the President of the United States to declare an energy emergency in 5f axsachuset ts. The matter is still pending. 3fassachusetts has regulations to prevent air pollution. The Company has been notified, on ocea-sion, of minor violations of these regulations. . Water A Federal statute prohibits the discharge of any pollutant (including heat), except in compli-ance with a discharge permit issued by the EPA for an initial term of no more than five years. The Company and Narragansett have received required permits for all their steam-generating planL. Occasional minor violations of the terms of these permits have occurred. V In March 1979, a citizens un>up brought suit against the EPA alleging failure of the EPA to regu. late and require discharge permits on existing and proposed dams. In 3tay 1979, the Company, along with other electric utilities, filed a motion to intervene in the suit because an adverse determina-tion could increase costs and adversely affect the Company's ability ta operate its hydroelectric f, facilities. y Nuclear The NRC, along with other Federal and state agencies, has extensive regulations pertaining to environmental and safety aspects of nuclear reactors, including the storage of spent fuel and radiation emission standards. There are also design controls and inspection programs to mitigate any Imsi-bility of nuclear accidents and to reduce any damages therefrom. For details on the effects of the T3II incident, see Additions to Generation and Regulation. Other The Company participates from time to time along with the other NEES subsidiaries in admin-t+ istrative rulemaking proceedings and law suits initiated by their representative trade associations. RESEARCH AND DEVFLOPMENT l l The NEES System, acting principally through NEPSCO, is engage <1 in various research and development projects. Areas in which work is being carried out include coal-oil mixture combustion,
;,, methods of reducing stack emissions, methods of avoiding biological entrainment and entrapment i in plant cooling water, and an automatic load control system. Total research and development costs expensed by the Company were approximately $3 million in each of the years 1978 and 1979.
LITIGATION On October 2,1975, suit was filed against the Company in the U.S. District Court for the District of Msssachusetts by the Ghana Supply Commission (Ghana) alleging that an intermediary in the chain of supply of residual fuel oil from Ghana to the Company had failed to make payment in full for oil supplied. The complaint further alleges that the Company was on notice of this failure and that, as a result, the Company's possession and use of such residual fuel oil was wrongful. The A 22 i
damages claimed cre cpproximately $15,500,000. The Company has filed an answer denying liability. The parties are no v engaged in pretrial discovery and a trial date has been set for spring 1980. On August 21, 1974, the Town of Norwood, a municipal light department purchasing power from Boston Edison Company (Boston Edison), filed a complaint in the U.S. District Court for the g District of 3Iassachusetts against Boston Edison and the Company for alleged antitrust violations. A material part of the complaint is against Boston Edison's pricing policy; however, certain violations were also alleged against the Company (individually and in combination with Boston Edison) in-ciuding: the refusal to arrange and pay for transmission of power which the Company had offered to sell to Norwood; imposition of restrictive conditions on the sale of this power; and a division of markets between Boston Edison and the Company. In addition, Norwood has aFeged that the NEPOOI, Agreement is a restrictive agreement designed to preclude wholesale competition. Norwood has requested an injunction against the alleged violations and trebled damages in the amount of
$4.'s million plus attorneys' fees. The defendants have filed answers to the complaint denying any viniations of the antitrust laws and raising affirmative defenses. The Company has filed motions for partial summary judgment on the discriminatory dealing claim and the NEPOOL elaim. The parties are currently engaged in pretrial discovery. The case is not now scheduled for trial, and it is pres (ntly anticipated that it will not be so scheduled until 1982 or later.
b - EMPLOYEE RELATIONS The ('ompany employed 759 persons as of December 31, 1979. Of these, approximately 480
- employees are represented by The Brotherhood of Utility Workers of New England, Inc. under a p collective bargaining agreenient which expires on 3farch 6,1982, The International Brotherhood of Electrical Worken under a collective bargaining agreement which expires on 3farch 6,1982, and the Utility Workers Union of America, AFL-CIO under a collective bargaining agreement which expires on 3farch 20,1980 Negotiations with the Utility Workers Union of America for a new collective
, bargaining agreement are currently underway. l
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REPORT OF INDEPENDENT CERTIFIED PUBLIC ACCOUNTANTS Nav ENauso Powra COMPANY Westborough, 31assachusetts We have examined the balance sheets of New England Power Company as at December 31, 1979 and 1978 and the related statements of income, retained earnings and changes in financial pmition for the five years ended December 31,1979. Our examinations were made in accordance with generally accepted auditing standards and, accordingly, included such tests of accounting records and such other auditing pnseedures as we considered necessary in the circumstances. D In our report dated January 22, 1979, our opinion on the 1978,1977 and 1976 financial state-ments was qualified as being subject to the effects, if any, of such refumL na might have been required had the outcome of three pending rate proceedings been known. As more fully explaied in Note K, based upon a review of regulatory decisions issued during 1979, managemtnt has concluded that any differences between refunds finally required in all three pending rate proceedings and its overall
, i' provision for refunds will not be material. Accordingly, our present opinion on the 1978,1977 and 1976 financial statements as presented herein is no longer qualified.
In our opinion, the financial statements referred to above present fairly the financial position of New England Power Company at December 31,1979 and 1978, and the results of its operations
- and the changes in its financial pwition for each of the five years in the period ended I)ecember 31, 1979, in conformity with generally accepted accounting principles applied on a consistent basis.
Coortas dr LYBRAND [ ] p Boston, 3fassachusetts i -_ January 25,1980 I' i
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NEW ENGLAND POWER COMPANY BALANCE SHEETS December 31, 1979 1978 ASSETS U
, Utility plant, at original cost (Note A) 8 939,448 8 925,194 Less-accumulated provisions for depreciation 243,789 218,849 695,659 706,345 Construction work in progress (Note JJ 237,406 199,916 Net utility plant 933,065 906,261 Investments:
Nuclear power companies, at equity (Note C) 38,519 38,159 Nonutility property and other investments, at cost 1,200 1,278 Total investments 40,019 39,437 Current assets: Cash 6,874 7,550 Accounts receivable, principally from sales of electrie energy: Affiliated companies 88,261 82,503 Others 13,074 11,133 Fuel, materials and supplies, at average cost (Note JJ 53,428 48,970 b Prepaid expenses and temporary deposits 245 197
- Total current assets 161,882 150,353 Deferred charges and other assets 4,797 1,703 4 Unamortized property losses (Note F) 33,068 5,106 81,172,831 81,102,860 CAPITALIZATION AND LIABILITIE8 Capitalization:
Common stock, par value 320 per share, authorized and outstanding 6,449,896 ahares 8 12s,998 8 128,998 Premium on capital stocks 87,207 87,207 Other paid in capital (Note H) 128,000 83,000 Retained earnings (Note I) 27,747 26,909 Total common equity 371,952 331,114 ( Cumulative preferred stock (Note E) 111,028 111,028 Long-term debt (Note 0) 462,922 465,413
- ' Total capitalization 945,902 907,555
'r. Current liabilities: [ Long-term debt due within one year (Note 0) 5,000
~
Short-term debt (Note D) 10,500 3,500 Accounts payable (including 49,782,000 and $1,077,000 to afliliates) (Note J) 64,680 50,360 Accreed liabilities: O Taxes 1,465 17,204
!~ Interest 5,854 5,943 Payroll and other expenses 954 936 Total current liabilities 83,653 82,943 Other reserves (Note E) 46,700 37,500 Deferred federal income taxes (Note B) 62,472 47,227 Unamortized investment tax credits (Note B) 34,104 27,635 A Commitments and contingencies (Note J, E and L) r $1,172,631 81,102,660 The accompanying notes are an integral part of these financial statements.
A.25 f w',y' Xa, "I
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l f NEW ENGLAND POWER COMPANY . STATEMENTS OF RETAINED EARNINGS , l Year Ended December 31, 1979 1978 1977 1976 1975 (In humande) Hetained Earnings at beginning of year $26,909 $22,435 424,121 825,344 824,217 l Net income trefer to " Statements of Income") 49,501 47,614 42,785 44,215 33,137 Reclassincation of amortization reserve 1,976 Total 76,410 72,025 66,906 69,559 57,354 Deduct cash diddends declared: ! , Cumulative preferred stock (Note E) 8,351 8,351 8,351 8,351 6,442 Common stock, 46.25, 85J0, 45.60, $5.75, and 84.25
- respatively 40,312 36,765 36,120 37,087 25,568 Retained earnings at end of year (Note I) 827,747 $26,909 422,435 824,121 825,344
- .e , The accompanying notes are an integral part of these financial statements.
i , w. ( l .: I , l $ s _- l ' I . 4 I .. 4 r o t I A.26 I l l l (
NEW ENGLAND POWER COMPANY STATEMENTS OF HANGES IN FINANOAL POSITION Year Ended December 31, It
, 1979 1978 1977 1976 1975 Sources of Funds (Ia 'Ihresands)
From operations: Net income . 8 49,501 8 47,614 8 42,785 8 44,215 4 33,137 Depreciation and amortization 28,700 27,500 26,600 25,600 22,000 e Provision for refunds (Note E) 9,200 13,400 13,000 11,100 Deferred federal income taxes 15,245 2,118 336 1,525 14,095 l Investment tax credits-net 7,500 6,227 3,861 2,796 1,037 Allowanee for funds used during construction (21,322) (16,507) (10,792) (6,832) (4,310) 88,824 80,352 75,790 78,404 65,959 Dividends on common stock (40,312) (36,765) (36,120) (37,087) (25,568) Dividends on preferred stock b Total funds from operations (8,351) (8,351) (8,351) (8,351) (6,442) s 40,161 35,236 31,319 32,966 33,M9 From Snancing transactions: Common stock 25,000 g Capital contribution frem parent company 40,000 30,000 10,000 20,000 Wo- Preferred stock 25,000 Long term debt-Issues 50,000 50/W) 60,000
- Etic ~iriata (7,400) (13,400) (2,400) (20,000)
Changes in short term debt 7,000 (40,825) (5,775) 35,100 (104,750)
, Total funds from inancing transactions 39,600 25,775 51,8 2 35,100 25,250 e
2 ~ Total sources of funds 79,761 61,011 83,144 68,066 59,199 i y
, Applicati n of Funds E, %astruction expenditures, excluding allowance for funds '[ used during construction 65,563 61,424 54,323 51,089 60,918
(^. 1 - 8 14,198 8 (413) $ 28,821 8 16,977 8 (1,719) Increase (Decrease) in Working Capital and Other Items Cash
' 4 (676) 8 191 8 (97) 8 (2,315) 8 6,488 Accounts receivable 7,699 565 7,105 32,909 1,410 Fuel, materials and supp!!es 4,458 8,594 5,990 6,731 (14,800)
Other current assets 48 278 (336) (434) (395) Accounts payable (14,520) (9,477) 11,392 (2,925) 11,242
} Accrued and other liabilities 15,810 (844) 5,561 (16,291) (7,787) r- Other items 1,379 894
! C (1,408) (698) 2,123
$ 14,198 8 (413) $ 28,821 8 16,977 8 (1,719) l
'. The accompanying notes are an integral part of these financial statements.
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r NEW ENGLAND POWER COMPANY NOTES TO FINANCIAL STATEMENTS Nort A-Significant Accounting Policies j 1. System of Accounts: l The accounts of the Company are maintained in accordance with the Uniform System of Accounts
;a prescribed by regulatory bodies having jurisdiction.
- 2. Plant: See Note 3 of Notes to Statements of Income.
l l Costs of current repairs and minor replacements of utility plant are charged to maintenance expense f.. accounts as incurred. Plant retired or otherwise disposed of, together with costs of removal less
*I salvage, is charged to accumulated provisions for depreciation.
. 3. Depreciation: 1 ' Depreciation is provided annually on a straight line basis in amounts at least sufficient to amortize the undepreciated cost of depreciable properties over their estimated remaining service lives. In the opinion of management, the accumulated provisions for depreciation and the provision for deprecia- ! ,. p tion shown in the accompanying financial statements are adequate for the purpose of depreciating the
/ plants and properties over their estinated remaining service lives and the plants and properties are l
l kept in good operating condition to render adequate and dependable service to customers.
.go. The provisions for depreciation as a percentage of weighted average depreciable property including hydro and thermal electric generating facilities and transmission facilities were 2.97% for 1979, 2.94% for 1978,2.89% for 1977,2.83% for Ib76 and 2.79% for 1975.
- 4. Retirement Plans:
I The funded plans in effect are noncontributory and provide retirement benefits for substantially a'l I employees. Current service costs are funded annually; prior service costs are being funded over periods of up to 20 years. Total pension expenses, for the years 1979 through 1975, including amorti-zation of prior service costs, were $1,704,000 in each of the years 1979 and 1978, $1,387,000 in 1977,
$1,280,000 in 1976 and $860,000 in 1975 (reflecting the effect of a five month strike). The market value of pension fund assets exceeded the actuarially computed value of vested benefits as of April 1,1979, the latest actuarial valuation date. Unfunded prior service costa are estimated to be $5,000,000 at December 31,1979. .
A.28 l t I . m. ) i
NEW ENGLAND POWER CGMPANY
~
NOTES TO FINANCIAL STATEMENTS-Continued I!
, NorrE B-FederalIncome Taxes The Company and other subsidiarias participate with New England Electric System in filing con.
solidated federal income tax returns. Federal income tax returns have been examined and reported upon by the Internal Revenue Service through 1976. Total federal income taxes differ from the amounts computed by applying the statutory tax rate to o income before taxes. The reason for the diferences are as follows: 1979 1978 1977 1976 1975
' (In housands)
Comp ='ted tax at statutory rates $35,083 837,906 $33,902 $36,380 826,402 Reductions in tax resulting from: Allorar.ce for equity funds used during construction (5,751) (4,265) (2,842) (1,602) (1,147) h ' All other diferences (2,565) (2,284) (3,216) (3,201) (3,388) Federal income taxes (including 8611,a00,8482,000,8146,000,
$131,000 and $303,000 charged to other income for the
. years 1979 through 1975, respectively) 826,767 831,357 $27,844 831,577 821,867 7 Efective federal income tax rate 35.1 % 39.7 % 39.4 % 41.7 % 39.8 %
P. The Company has adopted comprehensive interperiod tax allocation (normalization) consistent with regulatory approval. The following table details the components of deferred federal income taxes. 4 1979 1978 1977 1976 1975 (In Rossands) . dowance for borrowed funds used during construction S 2,198* 8 3,659 8 2,339 8 1,677 8 923 j Excess tax depreciation 6,350 6,454 6,602 6,935 7,179 [ Refund provision (4,232) (6,432) (6,240) (5,328)
] Property losses (Note F) 11,972 (118) 6,127 's Reversal of prior years' tax deferrals (2,314) (2,381) (2,237) (2,310) (1,162) h Construction costs and other 1,271 818 (128) 669 1,028 f~ $15,245 8 2,118 8 336 8 1,525 $14,095
- Excludes $1859 000 transferred to Property losses.
Investment tax credits are deferred and amortized over the estimated se-vice lives of the plant and 7~ equipment giving rise to the credits. Investment tax credits-net principally reflects reductions in current federal income taxes attributable to such investment tax credits which have been deferred. A 29 9 6 _ P"' 9~ 6
f NEW ENGLAND FOWER COMPANY NOTES TO FINANCIAL STATEMENTS-Continued Nots C-Investments in Nuclear Power Companies A summary of the combined results of operations of the nuclear power companies in which the Com-pany has investments is as follows:
)
l 1979 1978 1977 1976 1975 (In housands) l g Operating revenue . 3228,532 $194,C75 $184,977 $166,480 $174,039 Net ineen.e $ 21,204 $ 18.263 $ 18,049 $ 17,672 $ 17,515 i l Company's equity in net income $ 3,920 $ 3.635 $ 3,631 $ 3,615 8 3,473 i 1 A summary of combined assets and liabilities of the nuclear power companies in which the Company , p has investments is as follows: 1 1979 1978 ! (In housands) Plant $656,783 $620,639 e Other assets 63,595 44,232 Liabilities and debt (523.661) (471,920) ' Net assets $196,717 $192,951 x Company's equity in met assets 8 38,810 $ 38,159
.p At December 31,1979, $4,636,000 of undistributed earnings of the nuclear power companies were included in the Company's retained earnings.
N , Nors D-Short-Term Borrowing Arrangements The Compsnf has available lines of credit with a number of banks totaling $88,500,000, the terms of l which providt for borrowings at the prime rate at the time of borrowing. The terms of compensating ! balance arrangements vary among banks and generally provide that average balances be maintained I which vary from 7.57e of the line of credit to 207c of the amount borrowed. Information as to l.7 short-term borrowings is summarized as follows: 1979 1978 (In Thousands) Commercial paper outstanding at end of year $10,500 $ 3,500 Weighted average interest rate on borrowings outstading at end of year 13.3 % 10.1 % Maximum amount of borrowings at any month end 317,000 $60,200 Weighted daily average borrowings during year 8 3,204 $24,353 Weighted average interest rate during year 11.1 % 7.4% i - A-30 l
NEW ENGLAND POWER COMPANY NOTES TO FINANCIAL STATEMENTS-Con:Inued Il Nors E-Cumulative Preferred Stock A summary of cumula:ive preferred stock for 1979 and I!78 is as follows: Par Shares Authorized Dividends Current Value and Outstanding Amount Declared Call Price (In Thou nd.) 6% $100 80,140 $ 8,014 $ 481 (a) , 4.60% Series 100 80,140 8,014 368 $101.00 ' 4.56% Series 100 100,000 10,000 456 IN.08 4.64% Series 100 100,000 10,000 464 102.56
, 6.08% Series 100 100,000 10,000 608 102.84 ' 8.68% Series 100 100,000 10,000 868 105.62 8.40% Series 100 150,000 15,000 1,260 108.12 7.24% Series 100 150.000 15,000 1,086 106.68 11.M9 Series 25 1,000,000 25,000 2,760 29.05(b)
Total (annual dividend requirement f $8,351,000) $111,028 $8,351 (a) Noncallable. a (b) No shares may be redeemed through certain refunding operations prior to September 1,1980. Beginning in 1980 the Company will redeem 50,000 shares per year at $26.285 per share to satisfy a sinking fund obligation. Nort F- Property Losses In 1975 the Company cancelled plans to build a new oil. fired generating unit. Comm neing January 1,1976, with regulatory accounting approval, the Company began amortization of the resulting loss e, sf approximately $13,000,000 ($7,000,000 after. tax) over t. five-year period. Depreciation and amor-
.zation expense includes $2,600,000 relating to such amortization in each of the years 1976 through ,, 1979. The Company hr , teceived approval from the Federal Energy Regulatory Commission (FERC) 4 for the recovery of these costs through rates.
If
On December 17,1979, the Company announced cancellation of plans to build two nuclear units at an
~, abandoned Naval Auxiliary Landing Field in Charlestown, Rhode Island. The U.S. General Services Administration, which was responsible for disposition of the site and had tentatively agned in 1974
#4 to transfer the site to the Compan. , issued a decision in 1979 banning the use of the site for a nuclear plant. The Company has requested approval from the FERC for the recovery of the cost of the nuclear units in a request for increased rates filed in late 1979. In an order issued December 31, 1979, the FEHC stated that the prudence of the investment in the nuclear units, together with the appropriate amortization period, would be decided during hearings with respect to such rate increase.
On January 25, 1980, the Company received accounting appreval from the FERC to amortize the i estimateil 3 2 A $31,000,000 ($19,000.000 a fter. tax ) related to the project over a five-year period i commen ing with the effectiva date of the new rate schedules, June 1,1980. While the recovery of costs related to the nuclear unit.s through rates is subject to approval by the FERC, management believes that these openditu,rea were prudent. Management further believes that the FERC will continue to perniit the recover > of prudently incurred costs through rates. A-31 [p[1 g,y - - TC. ,;;v .
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I NEW ENGLAND POWER COMPANY NOTES TO FINANCIAL STATEMENTS-Continued Norn 4 - Long-term Debt - A summary of long-term debt ii as follows: Amount December 31, 1979 1978 First Mortgage Bonds Series C, 2%fe, due July 1,1979 $ 5,000 V Series D,27/afc, due February 1,1981 $ 12,000 12,000 Series E,3%7c, due June 1,1982 5,000 5,000 Series F, 3%9c, due January 1,1985 25,000 25,000 Series G,43s7c, due February 1,1987 10,000 10,A) Series H,49, due June 1,1988 10,000 10,000 jt Series I,436%, due November 1,1991 20,000 20,000 Series J,43sfe, due December 1,1992 12,000 12,000 Series K,4%%, due November 1,1993 10,000 10,000 Series L,64sW, due December 1,1996 10,000 10,000 Series M,67/8Fe, due October 1,1997 15,000 15,000 Series N,7%9, due July 1,1998 20,000 20,000 Series 0,73s?c, due December 1,1998 20,000 20,000 Series P, 8367c, due September 1,1999 15,000 15,000
,. Series R,7369, due July 1,2002 25,000 25,000 Series S, 8569c, due August 1,2003 40,000 40,000
- l. Series T,83s%, due December 1,2003 40,000 40,000 Series U,107/sFc, due March 1,2005 72,800 75,200 f4 General and Refunding Mortgage Bonds l N Series A,8369c, due January 1,2007 50,000 50,000 l Series B, 9%9, due July 1, 2008 50,000 50,000 461,800 469,200 Unamortized premiums and discount 1,122 1,213 Total long-term debt (annual interest requirement
- 2. $35,568,000 and $35,967,000) 462,922 470,413 t Less amount due within one year 5,000 Long-term debt $462,922 $465,413 Substantially all of the properties and franchises of the Company are subject to the lien of the Inden-tures under which First Mortgage Bonds and General and Refunding Mortgage Bonds have been issued.
l Pursuant to the provisions of sne Indentures, relating to the First Mortgage Bonds and General and l Refunding Mortgage Bonds, the Company may elect to satisfy its annual sinking fund obligations j of $4,690,000 accruing on July 1,1980, $4,570,000 in 1981 and $4,520,000 in each of the yeara 1982, 1983 and 1984 in cash or by evidencing to the Trustee net additional property in amounts.not less than $7,817,000 in 1980, $7,617,000 in 1981 and $7,533,000 in each of the years 1982,1933 and 1984. A-32 l i
NEW ENGLAND POWER COMPANY NOTES TO FINANOAL STA'IEMENTS-Continued Nors H-Other Paid.In Capital and Premium on Capital Stocks ,! In 1979,1978,1977 and 1976 New England Electric System, the parent company, made capital con-tributions of $40,000,000, $30,000,000, $10,000,000 and $20,000,000, respectively, to the Company which were credited to other paid.in capital. In 1975, the Company issued to New England Electric System 625,000 additional shares of common stock, par value $20 per share, for $25,000,000 of which $12,500,000 was creditel to premium on capital stocks '
, Nort I-Restrictions on Retained Earnings Available for Dividends on Common Stock Pursuant to the provisions of the Articles of Organization relating to the Dividend Series Preferred Stock and the Cumulative Preferred Stock, certain restrictions on payment of dividends on the com.
pon stock would come into effect if the " junior stock equity" were, or by reason of payment of such dividends became, less than 25% of " total capitalization." However, the junior stock equity at b December 31,1979 was 39% of total capitalization and, accordingly, none of the Company's retained earnings at December 31,1979 was restricted as to dividends on common stock under the foregoing provisions of the Articles of Organization restrictions. Pursuant to restrictions contained in the Supplemental Indentures relating to First Mortgage Bonds i and the Indentures relating to General and Refunding Mortgage Bonds, none of the Company's P retained earnings at December 31,1979 was restricted as to dividends on common stock. Norz J-Commitments and Contingencies The Company's constnaction expenditures are estimated to be $176,000,000 in 1980, excluding AFDC.
, . At December 31,1979 substantial commitments had been made related to this costruction program.
Under the Company's current arrangements for fuel supply, certain of its fuel contracts are assigned i* to a nonafEliate which purchases fuel under these contracts and in the open market, holds the fuel 1, . in inventory, as owner, up to a maximum amount of $50,000,000 and sells the fuel to the Com. {f pany at the time of burn at prices reflecting its cost of the fuel. In addition, the Company pays monthly charges to cover the nonaffiliate's services. The agreement is terminable on three months notice. Included in fuel, materials and supplies and in accounts payable is $21,184,000 representing M fuel inventory held for the Company under the agreement.
? Agreements have been entered into with other New England utilities, as joint owners, for the eon-
!" struction of several nuclear generating units. See " Additions to Generation". Nort K-Pending Rate Proceedmgs i The Company, whose rates are regulated by the FERC, was pennitted in 1976,1977 and 1978 to revine
,' and bill rates which are subject to refund. Revenue recorded since July 1,1979 is no longer subject to refund as a result of a settlement reached on a 1979 rate filing which has been approved by the FERO. IIowever, interest on accumulated refund provisions is centinuing to be accrued. Revenue in A.33 A
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A e nV' & t i N - --
NEW ENGLAND POWER COMPANY NOTES TO FINANCIAL STATEMENTS-Continued Narc K - Pending Rate Proceedings-Continued 1' the amounts shown below, collected between March 1,1976 and June 30, 1979 is subject to refund pending final determination. Beginning in December 1978, provisions for possible refunds have been estimated and recorded, reducing net income. The amount of such provisions' was based primarily upon management's evaluation of initial decisions of two FERC Administrative Law Judges issued in 1977 and 1978. Financial statemehts for 1977 and 1976 were restated to reflect the effect of such provisions. - h 1979 1978 1977 1976 Revenue subject to refund
. Billed and collected $26,500 $47,200 $39,600 $32,600 Effect on net income $13,300 $23,600 $19,800 $16,300 js Provision for estimated refunds Provision (including interest) $ 9,200 $13,400 $13,000 $11,100
, Reduction in federal incomo taxes 4,232 6,432 6,240 5,328 Reduction in net income $ 4,968 $ 6,968 $ 6,760 $ 5,772
, In July 1979, the FERC issued an Order with respect to the 1976 rate proceeding and in December 1979 a FERC Administrative Law Judge issued an initial decision in the 1978 rate proceeding.
Management has reviewed these 1979 decisions and has concluded that no revisions need be made to the existing reserve for refunds.
;I While the ultimate outcome of any one of these rate proceedings may result in final refunds higher or lower than the estimated provisions for that case, management believes that any differences between refunds finally required in all three cases and the overall provision for refunds will not be materie' M
. Nore L-Litigation (See " Litigation", above.)
Nore M-Supplementary Income Statement Information The amounts of maintenance, repairs, depreciation and taxes charged to accounts other than operating expenses were not material. Advertising expenses and rents were not material and there were no A ' royalties paid. Research and development costs charged to expense were $2,883,000, $2,796,000,
$3,056,000, $3,149,000 and $2,399,000 in 1979 through 1975, respectively. Taxes, other than federal income taxes, charged to operating expenses are set forth by classes as follows:
1979 1978 1977 1976 1975 (In Thousands) Municipal property taxes $26,038 $26,082 $25,492 $24,003 $21,642 State franchise taxes (based on income) 1,901 4,050 4,846 4,763 522 Federal and state payroll and other taxes 1,712 1,290 1,142 998 765
$29,651 $31,422 $31,480 $29,764 $22,929 A.34
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NEW ENGLAND POWER COMPANY NOTES TD FINANOAL STNTEME. yrs-Continued Norm M-Supplementary Information-Continued Ir New England Power Service Company, an = Minted service company operating pursuant to the pro. visions of Section 13 of the Public Utility Holding Company Act of 1935, furnished services to the Company et the cost of such services. The cost of such services billed to the Company for the years 1979 through 1975, respectively amounted to $22,878,000, $22,346,000, $21,468,000, $21,316,000 and
$19,951,000 including $13,021,000, $11,960,000, $12,338,000, $13,203,000 and $13,604,000 for direct construction costs. ' . Nors N-Selected Quarterly Finsmeial Information (Unaudited)
- k. (See " Selected Quarterly Information-Unaudited", above.)
Norz O-Replacement Cost Data (Unaudited) U
'his data is presented in ecmpliance with a Securities and Exchange Commission requirement that the Company provide information about the cost of replacing pmductive assets and related accu-s mulated depreciation and depreciation expense based upon such cost. Management cautions against using this data for either restating earnings or estimating the current value of productive ca-pacity at amounts significantly diferent from original cost. The methods and subjective judg- ,i ments required in estimating replacement costs make the nature of the inforzration imprecise. In addition, the Company is subject to " original cost" regulation in the determination of a fair and rea-sonable rate of return on investment and the recovery if such investment in the price of electrie energy. Management therefore believes that any higher replacement costs that may be incurred in 4 ,; the future will be recovered through the normal rate-making pescess by means of higher prices.
This replacement cost does not purport to represent either current value, or amounts which could
- d. be realized if the assets were sold. Rather, rviscement cost generally represents the estimated amount h- at today's prices which would be required to replace the Company's pmductive capability, assuming 2 replacement with the most economical new assets substantially similar in type and function to the
! present assets. y Data presented on an original cost basis elsewhere in these financial statements is shown below as j_ computed on a replacement cost basis: g 1979 1973 At year end: (gmanma ) Utility plant . 42,800 $2,500
}
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Accumulated depreciation 900 800 Net utility plant $1,900 $1,700 Depreciation expense for the year . 4 62 $ 56
/. A-35 h
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e NEW ENGLAND POWER COMPANY NOTES TO FINANCIAL STATEMENTS-Continued NOTE O-Replacement Cost Data (tJnaudited)-Continued j Replacement cost of electric generating plant was calculated by pricing existing capability at today's estimated construction cost per kilowatt for facilities using the same fuel, assuming consolidation of units where appropriate to achieve greater economies. For certain small hydroelectric generating l units, which represent less than 2% of generating capability and which would be uneconomical to t . replace today, costs per blowatt of alternative forms of generation were used. ! U Replacement costs of transmission, distribution and general plant are c'urrent engineering estimates of costs to replace existing facilities. l i
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Land and land rights, intangible assets, property held for future use and construction work in
- l. progress, in the amount of $292,000,000 in 1979, and $253,000,000 in 1978, are included at original cost.
,ft l The straight.line age-life method was used to compute accumulated replacement cost depreciation, except for transmission and general plant where the ratio of book reserve to original cost was applied to the year-end replacement cost of such utility plant. ! [' Replacement cost depreciation expense for electric generating plant was calculated by dividing average replacement cost of each generating unit by its estiraated us(ful life. l . For all other plant, original cost depreciation rates were applied to the corresponding average replace-l P ment cost of each class of utility plant. Nort P-Supplementary Information to Disclose the Effects of Changing Prices (Unaudited) pk The Company, in accordance with the Staterr/.nt of Financial Accounting Standards No. 33 (Statt ) (. I
' ment No. 33), is providing the following information about the effects of changing prices. The pre.sen-tation of the supplementary financial data is experimental in nature, and does not intend or purport l
to adjust earnings or other financia' information reported on an historical cost basis. The information ) is presented in both conventional historical dollars and constant dollars. The constant dollar amounts represent historical dollars which have been stated in terms of dollars of equal purchasing power as measured by the Consumer Price Index (CPI) for all ur' onsumers. Such constant dollar amounts are intended to reflect the estimated effects that general 1:a on had on the Company. The current year's provision for depreciation and amortization in the income statement shown below l l has been adjusted from $29 million in historical dollars to $54 million in constant dollars. This amount I was determined by applying the Company's depreciation rates to the constant dollar value of depre-
~
ciable utility plant. Such value was arrived at by adjusting the historical dollar amounts of plant to l i
' constant dollars using the CPI. In accordance with Statement No. 33 adjustments to income taxes or l other items were not considered, and income was accordingly reduced by the full $25 million increase in depreciation and amortization.
A-36 . l l l l
i l l NEW ENGLAND POUER COMPANT NOTES TO HNANCIAL STATEMENTS-Continued i I, Nors P-Supplementary Information to Disclose the Effects of Changing Prices (Unaudited)- ) Continued In addition, during 1979 there was an estimated increase of $91 million in the cost of plant stated in terms of constant dollars over the cost of plant stated in historical dollars. However, the 691 million increase le reported as a reduction of constant dollar value to historical cost because only historical dollars are presently recoverable under the ratemaking process. ' The Company's holdings of n unetay assets such as cash and receivables lose purchasing power dur-ing perimis of inflation because these assets will purchase less at a future date. Alternatively, the Company's holdings of monetary liabilities such as debt and accounts payable gain purchasing power during periods of inflation because they are paid in the future with dollars having less purrhasing power. Since the Company has an excess of monetary liabilitics over monetary assets there was a net gain, estimated at $63 million, from the decline in purchasing power in 1979 of net amounts owed p l'nder the ratemaking process, tlus $63 million gain will not be realized. To reflect the estimated effect of rate regulation, the estimated reduction of constant dollar value of utility plant to historical cost of $91 million is reported as an offset to the estimated gain of $63 million from the decline in purchasing power of net amounts owed. Ve Statement of Income Adjusted for Changing Prices For the Year Ended December 31,1979 (In Millions)
', htorical Constant Dollar Cost Average 1979 as Reported Dollare Operating revenue $608 $608
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,. Fuel for generation 289 289
. Purchased e!actrie energy 101 101
. Other operation and maintenance 69 69 Depreciation 29 54 M Taxes 56 56
- - Interest expense 31 31 Other income (17) (17) 1 558 583 l Income (excluding reduction to historical cost) $ 50 $ 25 l
Reduction of 1979 increase in constant doliar value of !j utility plant to historical cost $(91) l- Gain from decline in purchasing power in 1979 of net amounts owed 63 Net i
$(28)
A-37 i l _y. - '
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7 NEW ENGLAND POWER COMPANT NOTES TO FINANCIAL STATEMENTS-Continued - Norc P-Supplementary Information to Disclose the Effects of Changing Prices (Unaudited)- Continued As also required by Statement No. 33, the following taole shows selected financial data adjusted for the effects of changing priem. Certain of this data was derived from the above Statement of Income Adjusted for Changing Prices. b Five Year Comparison of Selected Supplementary FIAnancia! Data Adjusted for Effects of Changing Prices (la Millions of Average 1979 Dollars) Year Ended Deweiber 31, I' 1979 1978 1977 1976 1975 Operating revenue $608 $560 $620 $593 $585 Historical dost informatio- Adjusted for General
, in)fation
~
Income (excluding reduction to historical cost) . $ 25 Net assets at year-end at net recoverable cost $456
'V General Information
! Gain from decline in purchasing power in 1979 of net amounts owed $ 63
+6 170.5 Average consumer price index 217.0 195.4 181.5 161.s
, 3 1 i l l A-38 l t l l
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- i EXHIBIT F-4 .
FLULi4AL ENI.ldGY lit.GULAIORY COMMi% ION 6 WASHINGTON 20426 ' Docket '*os. ER80-66. ER80-67, E"80-68 ER80-220 Leva, Hawes, Symington, Martin & Oppenheimer EV 2 g gg80 Attention: Mr. Edward Berlin j 815 Connecticut Avenue, N.W. Attorney for New England Power Company 4uI W.41b Washington, D.C. 20006
Dear Mr. Berlin:
On Octoher 22, 1980, the PresidIun Adminintratiyc Law Judge certLiJcd to [ the Commission a proposed Settlement Agreement entered into by.New England Power Company, Pitchburg Gas and Electric Light Company and the + non-affiliated intervenor customers, but applicable to all customers in thcae proceedings. The settlement was filed in accordance with the pro-visions Procedure. of Section 1.18(e) of the Commission's Rules of Practice and . Staff flied comments in support of this offer of settlement on October 8, 1980, which indicated that the settlement revenue levels in each docket produced earned returns that did not exceed staff's recommended 10.48% -
- overall rate of return including 13.84% return on common equity at an equity ratio of 35.32%. The Rhode Island Attorney General, Rhode Island 3
O Consumers Council and the Rhode Island Division of Public Utilities and Carriers jointly filed comments neither supporting nor opposius the settlement. Rather, these parties defer to the Commission the determi-l t nation of the merits of the settlement proposal. l 1 The settlene.nt agreement is in the public interest and is hereby accepted. The Commission'a acceptance of this settlement does not constitute approval or precolant regarding any principle or issue in this proceeding. l ' It is noted that the settlement agreement provides that within 60 days of the close of calendar year 1980, New England Nwer Company will nuhmit to tho Commission an informational report identifying all coul l conversion costs actually incurred and expended in 1980, togethsr with detail sufficient to identify the nature of such actual expenditures. In the event auch coal conversion capital costa provo to bu le as than
$24,797,000, .with a resulting cost of service effect of $75,000 or more, New 1:ngland Power Company proposes to make a corresponding downward 4 djustment to the settlesient demand rates. NEPCO shall file such further .i j!
reduced settlement rates within this 60 day period. i The tariff sheets attached to the Settlement Agreement are accepted for - filing to be effective as designated on the Enclosure. All revenue amounta refundedcollected within 30indays excess of the of the date settlement rate levels must be of this letter. i Further refunds, O
..._.,__,_.--.m.-._ , . , . - . . _ . - _ - - . _ - - , , . _ , _ . - . - . , - - . . . . _ . . . - . _ , , , - , - - , . - . ~ , . , . , . ~ . . , ,
( if required, must be made within 30 days of the commission acceptance of reduced settlement rates filed as part of the coal conversion expenditure informational report. All refunds must include interest computed in accordance with regulations Section 35.19a. Within 15 days after refunds have been made, the Company shall file with this Commission a compliance report showing monthly customer billing determinants and revenues under prior, present and settlement rates, the monthly customer revenue refund with interest, and the calculation of the monthly interest together with a summary of such information for the total refund period. In addition the Company shall furnish a copy of such report to each wholesale customer and to each State Commission within whose jurisdiction the resale customers distribute and sell electric energy at retail. This order is without prejudica to any findings or orders which have been made or which will hereinaf ter be made by the Commission, and is without prejudice to any claims or contentions which may be made by the Commisalon, its staff, or any party or person affected by this order, in any proceeding now pending or hereinafter instituted by or against New England Power Company. Upon satisfactory completion of the above filing and informational requirements, the dockets are terminated. By direction of the Commission. 5.asw.s Secretary Enclosure l l 1 O
UNITED STATES OF AMERICA BEFORE THE FEDERAL ENERGY REGULATORY COMMISSION
} Docket Nos. ER80-66 New England Power Company ) ER80-67
) ER80-68
) ER80-220 OFFER OF SETTLEMENT This Offer of Settlement is jointly sponsored by New England Power Company (NEP), the NEPCO Customer Rate Committee and the Fitchburg Gas and Electric Light Company with the antent of reaching a settlement of the rate changas filed by NEP or. November 1, 1979 and February 1, 1980. The rate changes filed on November 1, 1979, and designated W-2, increased the rates applicable to Primary and Contract Demand service and O' increased the generation and transmission credit paid by NEP to The Narragansett Electric Co:pany. In addition, on that date NEP filed a rate increase for System Power Unreserved ("SPU")
service. On February 1, 1980, NEP filed a rate increase for Limited Capacity Entitlements ("LCE") service. In the case of Primary service, NEP proposed to increase the demand charga from $6.79 to $7.85 per Kw-month and to increase the eneigy charge from 17.55 to 18.43 taills per Kwh. For Contract Demand service, NEP proposed an increase from
$8.22 to $10.33 per Kw-month. For System Power Unreserved service NEP proposed an increase from $50.30 per Kw-year to
$64.00 per Kw-year; and for Limited Capacity Entitlement ser-vice, NEP proposed an increase from $37.44 per Kw-year to
$46.14 per Kw-year.
Pursuant to the Commission's order of December 31, 1979, NEF fevised its proposed rate increase for the Primary, Contract Demand, and SPU service customers to reflect deletion of costs associated with its rate base treatment of the unamor-tized portion of its Salem Harbor Unit 5 and NEP Units 1 and 2 extraordintry property losses; costs associated with PURPA load research programs; costs associated with the income tax expense and the Narragansett generation and transmission credit. NEP also voluntarily revised its proposed rate increase to delete contributions to the Electric Power Research Institute from the (,)
~/
Contract Demand and SPU services and to reflect changes in the calculation of O & M expenses for the SPU service. As modi-
4 l fled, the Commission accepted for filing NEP's proposed rate increases and provided for an effective date of January 2, 1980 for SPU service and an effective date of June 1, 1980 for the l Primary and Contract Demand services, each of these rates being i subject to refund. After Petitions for Rehearing, the Commission, by order dated March 31, 1980, modified its prior ruling and allowed an 4 j effective date of January 2, 1980, for the portions of the increase to Primary and Contract Demand service customers i designed to recover costs incurred during the Period II test year (January 1, 1980 - December 31, 1980) as a result ofThe the conversion of the BLeyton Point Units from oil to coal. January 2, 1980 effective date for SPU service remained un-changed as did the June 1, 1980 effective date for the balance of the increase for Primary and Contract Demand service. 1 On May 2, 1980, NEP voluntarily filed a further reduc-l tion both in the then-effective SPU rate and in the Primary and Contract Demand service rates which were to become effective on i June 1, 1980. In that voluntary filing, NEF revised those 4 rates to reflect the deletion of the costs projected for the j short-term coal conversion of Salem Harbor Units 2 and 3. i Furthermore, NEP voluntarily revised the SPU rate to reflect j the deletion of all costs associated ~with the NEP 1 and 2 abandoned property loss, as well as the deletion of long-term coal conversion costs relating to the Brayton Point Units. Since the SPU rate change had been made effective on January 2, 1980, IMP also voluntarily agreed to make -- and subsequently made -- appropriate refunds to the SPU service customers. i Finally, with respect to NEP's proposed rate increase I for LCE service customers, NEP voluntarily revised the LCE proposed rate incresse tc eliminate all costs associated with j the NEP 1 and 2 and Salem Harbor 5 extraordinary As property revised, the losses, as well as all coal conversion costs. ' LCE proposed rate increase was accepted for filing and suspended with an effective date of September 1, 1980. l The parties to this offer of Settlement have held a series of conferences over the past several months and offer the rate schedules attached hereto in full settlement of all aspects of these proceedings as they affect the settlement rates and rate levels. The settlement rates incorporate all revisions directed by the Commission as well as those volun-tarily adopted by the Company. In the case of Primary and j Contract Demand service, in addition to refiling the June 1, 1980 rates to reflect the full agreement of the parties, NEP is i O refiling the portion of the increase made effective January 2,1980 to reflect the
- a O
2 conversion expenditures and will refund, with interest, all revenues collected in excess of the rates as revised. Specifically, the settlement rates are develope ~ using revised estimates of test year capital expenditures for .4EP's coal conversion efforts. Based upon actual costs incurred to-date and projections for the remainder of 1980 which are based on the most current data, the annual coal conversion capital expenditures reflected in the settlement rates are $24,797,000. For settlement purposes, the parties have agreed that the $24,797,000 figure represents the most reasonable Period II estimate currently available. Thus, as part of the settlement, NEP agreer that $24,797,000 shall represent a ceiling for test period coal conversion capital costs, i.e., no upward adjust-ment to that figure or to the settlement rates will be reques-ted. However, NEP further agrees that within sixty (60) days after the close of the calendar 1980 test period, NEP will submit to the Commission and to the parties a report iden-tifying all coal convercion capital costs actually incurred and expended during Period II, together with detail sufficient to identify the nature of all such actual expenditures. In the event that annual coal conversion capital costs expended during 1980 prove to be less than the $24,797,000 estimate with a i
~
resulting cost oc service effect of $75,000 or more, NEP will
- make a corresponding downward adjustment to the settlement demand rates to reflect this disparity and within thirty (30) l days the
- reaf ter, will refund any amounts collected in excess of I
the revised settlemant rates together with interest computed pursuant to section 35.19(a) of the Commission's regulations. The rates for System Power Unreserved and Limited Capacity Entitlements service will be revised as of January 2, 1980 and September 1, 1980, respectively, and revenues col-lected since those dates in excess of the settlement rates will be refunded with interest under S35.19(a). Finally, the Narragansett generation and transmission credit has been re-vised consistent with the settlement rate level. j As revised, the rates, following acceptance of this settlement, will be as follows: l
- 1. Primary service: demand charge will be reduced to $7.68 per Kw-month and the energy charge will be reduced to 17.94 >
mills per Kwbr l ) 2. Contract demand service: demand charge l will be reduced to $9.13 per Kw-month;l [)' 1 For purposes of calculating the refund for the interim supplemental rate relating to coal conversion costs, which was l l t
- v
+
O
- 3. System Power Unreserved service: demand charge will be reduced to $56.21 per Kw-year; i
- 4. Limited Capacity Entitlements service:
' demand charge will be reduced to $38.66 per Kw-year. In reaching this rate settlement the parties expressly reserve all positions taken by them with respect to any aspect of the filing and agree that the settlement rates will not be l 4 subject to further adjustment as a result of any actions taken or decisions reached by the Commission or by any Court in any docket. ARTICLE I Effective Date and Filing Limitations 1.1 Upon the Commission's approval of this Offer of
' Settlement, the rate schedule revisions attached hereto will become effective as of the designated eff ective date of each 2
rate. Refunds shall be made of all amour.ts collected in excess of the settlement rate levels with interest as required by 18
- O' C.F.R. 535.19(a).
ARTICLE II l Conditions 2.1 The making of this Offer of Settlement shall not be i deemed in any respect to constitute an admission by any party that any allegation or contention in these proceedings is true ! and valid. 2.2 The making of this offer of Settlement establishes no principles and shall not be deemed to foreclose any party from making any contention in any other proceeding or investi-gation. 2.3 The acceptance of this Offer of Settlement by any party and the Commission shall not in any respect constitute a determination by the Commission as to the merits of any allega-tions or contentions made in this rate proceeding. (Footnote continued) made effective on January 2, 1980, and which was superseded on June 1, 1980, the demand charge for Primary and Contract Demand service will be $7.06 and $8.31 per Kw-month, respectively. O i
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2.4 This Offer of Settlement is expressly conditioned upon the commission's acceptance of all provisions hereof, without change or condition. 2.5 The discussions which have produced this Offer of Settlement have been conducted on the explicit understanding, pursuant to Section 1.18(e) of the Commission's Rules of Practice and Procedure, that all offers of settlement and discussions relating thereto are and shall be privileged, si:all be without prejudice to the position of any party or partici-pant presenting such offer or participating in any such discus-sion, and are not to be used in any manner in connection with these or any other proceedings involving one or all of the parties to this proceeding or otherwise. This offer of Settlement is submitted on the condition that, in the event the Commission does not by order accept it in its entirety, this Offer of Settlement shall be deemed withdrawn and shall not constitute any part of the record in this proceeding or be used for any other purpose. Respectfully submitted, a# el., M ' Edward Berlin Leva, Hawes, Symington, Martin & Oppenheimer 815 Connecticut Avenue, N.W. Washington, D.C. 20006 (202) 828-7847 ttorney for New England Power Company f Of1A;$ h. Thomas N. McHugh, Jr Spiegel & McDiarmid 2600 Virginia Avenue, N.W. Washington, D.C. 20037 Attorney for the NEPCO Customer Rate Committee, et al. Voigt
)
Harry LeBoeu , Lamb, Lei y & MacRae 1333 New Hampshire Ave., N.W. Washington, D.C. 20036 Attorney for Fitchburg Gas O' and Electric Company September 16, 1980
TAUNTON HUNICIPAL LIGHTING PIANT Units No. I and No. 2 SEABROOK NUCLEAR POWER STATION SEABROOK. NEW HAMPSHIRE Information furnished pursuant to Subsection 50.33 of Conunission'a Rules and Regulations with respect to the ! - particular Applicant named above as part of Final Safety Analysis Report and Operating License Application for the above Units. July 1981 O
I. ORCANIZATION AND CONTROL O Name of Aprlicant Taunton Municipal Lighting Plant Address of Applicant 55 Weir Street Taunton, Massachusetts 02780 Description of Business of Applicant The, applicant is a municipal lighting plant in the business of
~
generation, transmission, and distribution of electric power as a municipal corporation established under Massachusetts law. The i principal locations where it does business are Taunton, Raynham, Berkley, Dighton and Lakeville, Massachusetts Officers and Directors Joseph I. Quinn, Chairman 54 Buffington Street, Taunton, MA. 02780 O Craig J. Di;tra, Secretary 118 Broadway,, Taunton, MA. 02780 Clive H. Olson 380 West Britannia Street, Taunton, MA. 02780 i All Commission members are citizens of the United States of America. The Commission is not acting as agent or representative of another person. 6/26/81 .t.
II. FINANCIAL CUALIFICATIONS Under the Joint Ownership Agreement, the Taunton Municipal Lighting Plant is responsible for its Ownership Share of the operation and maintenance cost of the Units which, when the pending transactions described herein have been consummated prior to comnercial operation, will be .10034 percentage of those costs, and a similar percentage of the ultimate cost of deconsnissioning the Units. Based upon the estimates set forth above under Part IV of the General Information, the Taunton Municipal Lighting Plant's share of these costs should amount approximately to $151,000. and $151,000 for the first five years of operations of Units 1 and 2, respectively; and approximately
$42,000 to $86,000 for the decommissioning of the two Units. 'In addition, The Taunton Municipal Lighting Plant's share of fuel expenses during the period would be $515,000.
As evidence of its financial qualifications to meet those costs, the Taunton Municipal Lighting Plant submits herewith: Exhibit A - Sources of Funds Exhibit B - Annual Report to the Department of Public Utilities 6/26/81
III. REGULATORY ACENCIES AND PUBLICATIONS g-'S A. Regulatory Agencies (--) The following regulatory agencies have jurisdiction over the rates and services of the Taunton Municipal Lighting Plant. Massachusetts Department of Public Utilities, Saltonstall Building, 100 Cambridge Street Boston, Massachusetts 02202 B. Publications The following trade and news publications are used by the Taunton Municipal Lighting Plant for official notifications, and/or are otherwise appropriate for notices regarding this unit: Taunton Daily Gazette, Post Office Box 111, Taunton, MA. 02780 Fall River Herald News, 207 Pocasset St., Taunton, MA. (mv) 02722 Brockton Enterprise, 60 Main Street, Brockton, MA. 02401 6/26/81
EXUIr>IT A O Applicant: Taunton Municipal Lighting Plant O Nucicar Plant: o Seabrook #1 end #2 Sources of Funds for System-wide Construction Expenditures and Capital Structure During Period of Construction of Subject Nuclear Power Plant (Millions) Through 1980 1981 1982 1983 1984 1485 1986 1987 1988 Construction Years of Subject Nuclear Power Plant INTERNALLY GENERATED CASH Net Income - 1.393 1.591 1.695 1.733 2.009 1.879 2.14 2 1,842 Depreciation Cash Fund - 1.549 1.572 1.595 1.625 1.811 1.841 2.034 2.064 Change in Working Capital (Increase) - ( .867) ( .323) ( .281) ( .426) ( .525) (1.109) (1.630) (2.426) Total Funds 2.075 2.840 3.009 2.932 3.295 2.611 2.546 1.480 CONSTRUCTION EXPENDITURES Nuclear Power Plants 3.081 1.015 1.755 1.789 1.687 2.020 1.451 1.101 - Other __- .640 .640 .750 .750 .750 .750 1.000 1.000 Total Construction Expense - 1.655 2.395 2.539 2.437 2.770 2.201 2.101 1.000 Subject Nucicar Plant 1.151 .385 .457 .418 .260 .230 .001 - - 3 OTHER CAPITAL REQUIREMENTS Redemption of Maturing Bonds - .420 .445 .470 .495 .525 .410 .445 .480 Total Capital Expenditures - 2.075 2.840 3.009 2.932 3 . 29_- 2.611 2.546 1.480 CAPITAL STRUCTURE Long Term Debt: 3.0% .400 .300 .200 .100 - - - - 3.1% .180 .135 . 90 . 45 - - - - 7.9% 22.815 22.515 22,190 21.840 21.460 21.050 20.605 20.125 June 26, 1981 o
i
'O MUNICIPAL LIGHTING PLANTS Tijt Communitstaltf) of fRa%%atf)udett%
RETURN OF THE O - CITY OF TAUNTON TO THE DEPARTMENT OF PUBLIC UTILITIES OF MASSACHUSETTS l For the Your Ended December 31, !O l80] -
O V Ehe Commonluealth of Alaggachttgetts g
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@ OFFICE OF TuS C, [/f 7- DEPARTMENT OF PUBLIC UTILITIES K^ ~! 100 Cambridge Street Boston, Massachusetts 02202 To the Mayors, Selectmen, Municipal dght Boards and Managers of Municipal Lighting in the Several Cities and Towns in this Commonwealth operating Gas or Electric Light Plants:
This form of Annual Return should be filled out in duplicate and the "Iginal copy returned to the Office of the Department of Public Utilities, Accounting Division,167 State IIouse, Boston 33, Mass., by MARCII 31st in accordance with the requirements of the statutes of the Commonwealth of Massachusetts and the regulations of the Department made in pursuance thereof. Where the word "None" truly and completely states the fact, it should be given as the answer to any particular inquiry or portion of an inquiry. If respondent so desires, cents may be omitted in the balance sheet, income statement and supporting schedules. All supporting schedules on an even-dollar basis, however, shall agree with even-dollar amounts in the main schedules. Averages and extracted figures, where cents are important, must show cents for reasons which are apparent. Special attention is called to the legislation in regard to the Returns printed on the Inst page. Inquiries and other communications ia relation to Returns should be addressed to the DIRECTOR OF UTILITY ACCOUNTING y'"\ s e
E9e conunantocatte at fanssat9usetts RETURN OF TIIE CITY .0F
.. T.A.u n.T o.g. . .
i TO Tile
; DEPARTMENT OF PUBLIC UTILITIES l OF MASSACIIUSETTS l
l For the Year Ended December 31, l l T$u(48 L a LD l Name of onicer to whom correspondence should l" ' Joseph M. Blain be addressed regarding this report. I l Official title. .Gegeral Manager . . Ollice addre. .<.. . ". . . . Form AC19- Taunton, Ma 02780 i M i
0 TABLE OF CONTENTS s Page General Information 3 Schedule of Estimates 4 Customers in each City or Town 4 Appropriations Since Beginning of Year 5 Changes in the Property 5 Bonds G Town Notes 7 Cost of Plant 8-9 Comparative Balance Sheet 10-11 Income Statement 12-13 Earned Surplus 12 Cash Balances 14 31aterials and Supplies 14 Deprecintior Fund Acmunt 14 Utility Plant-Electric 15-17 Production Fuel and Oil Stocks 18 Miscellaneous Nonoperating Income 21 Other Income Deductions 21 Miscellaneous Credits to Surplus 21 Miscellaneous Debits to Surplus 21 Appropriations of Surplus 21 Municipal llevenues 22 Purchased Power 22 Sales for Itesale 22 Electric Operating Itevenues 37 Sales of Electricity to Ultimate Consumers 38 Electric Operation and Alaintenance Expenses 39-42 Taxes Charged During Year 49 Other Utility Operating Income 50 Income from Merchandising, Jobbing and Contract Work 51 Electric Energy Account 57 Monthly Peaks and Output 57 Generating Station Statistics 58-59 Steam Generating Stations 60-G1 flydroelectric Generating Stations 62-63 Combustion Engine and Other Generating Stations 64-65 Genuating Statistics (Small Stations) GG Transmission Linp Statistics 67 Substations 68 Overhead Distribution Lines Operated 69 Electric Distribution Services. Meters and Line Transformers 09 Conduit, Underground Cable and Submarine Cable 70 Street Lamps 71 Rate Schedule Information 79 Signature P;;;a 81 l FOR GAS PLANTS ONLY: Page Page Utility Plant-Gas 19-20 Gas Generating Plant 74 Gas Operating Itevenues 43 Boilers 75 Sales of Gas to Ultimate Consumers 44 Scrubbers, Condensers and Exhausters 75 Gas Operation & Maint. Expenses 45-47 Purifiers 76 Purchased Gas 48 Hold.frs 76 ,
%1es for ltesale 48 Transmission and Distribution Mains 77 . ales of itesiduals 48 Gas Distribution Services, Ifouse Governors ) ecord of Sendout for the Year in MCF 72-73 and Meters 78 PAGES INTENTIONALLf OMITTED: 23 to 36 and 53 to 5G e
e
. - _ _ _m_ . . __. __ . _ _ _ _ _ _ .
3
! GENERAL INFORMATION.
1 1. Name of town (or city) making this report. City of Taunton
- 2. If the town (or city) has acquired a plant, Kind of plant, whether gas or electric. Electric j Owner from whom purchased, u so acquired. Taunton Electric Co. (Doc. 12, 1895;.
Date of votes to acquire a plant in accordance with the provisions of chapter 161 of tl.o General Laws. 0ct. 7,18 )6) i Record of votes: First vote: Yes, 7 ; No, - Second vote: Yes, 8 ; No, ,, j Date when town (or city) began to seli gas and electricity, 1 July 1, 1897
- 3. Name and a dass of manager of municipallighting:
j' Joseph !! Blain _ 54 Apple Blosson Lane Taunton,!!a , 4. Name and address c,f mayor or yJgym Joseph L. Amaral 77h Cherry St. Taunton, !!a r 1.
- 5. Ns.me and address of ccxxXor city) treasurer:
l Willian F. Carney
- b. 112 Mayflower Ave.
b Taunton, Ma . - 6. Name and address of ccxxXor city) clerk: Henry L. Galipeau 513 Bay St. Tauntc'n, !!a
- 7. Names and addressea of menibers of municipallight board: t
. Clivo H. Olson, 380 W. Britannia St., Taunton, Ma l Uniter F. Precourt, Jr. , 60 Avon St. , Taunton, !!a Joseph I. Quinn, Sh BuffinLton St., Taunton, Ma I
- 6. Total valuation of estates in:ocat(or city) according to last State valuation S Residential & Open Space 338,269,741 ,
Con:mercial, Industrial & Personal 9h,865,689 j . 1s. Tax rate for all purpo<es during the year: $ ! Residential & Open Space 30.50 Cor:nercial, Industrial & Personal 53.20
- 10. Amount of mana7er's sa!ary: S 35,000 t
i
- 11. Amount of manager *r bond: $ 10,000 t
- 12. Amount of salary paid to members of municipallight board (cach)- S 2,h00 Yr. Chairnaa j 2,000 Yr. Each Other
-Members
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, , . - , . - _ . . _ ._ _ _ _ _ . . , _ , . . . _ _ _ _ . _ . _ . . - - . - . - _ _ _ _ _ _ . . _ . _ . . . _ . _ _ . . . . , . _ ~ _ ,
Annust raport of.. a On I,$M,p,$},,[fM ,M,,@,M, ,, ..yter andsd Dic5mbsr 31,1980
~
FUltNISII SCIII.DUI,1 OF ESTIM ATES IAEQUlitEI) ILY GENEllAL LAWS, CIIAl'TEll 161, SECTION 57 FOlt GAS ANI) EI.IX TRIC I,1GIIT l'EANTS FOlt Tile FISCAL YEAlt, ENDING I)ECEMilElt 31, NEXT. s INcoun rkoM rkivATn coxst unns: 1 From sales of gw, 2 rrom %f . lect ricity . ?52,573,600 - a w^' 52,573,603 5 Ex11:ssEs: C For operat;on, maintenante and repairs. 148,050,003 7 For interest on bonds, notes or scrip. 1,828,318 8 For dr-preciation fund ( 14 per cent on $ 51,639,128.71 "* P" P"" N ' 2,065,565 9 For smkmg fund reqmrements. 10 For note payments. 11 For bond payments 120,000 4 12 For be.s in f receding , sear. 13 n total 52,363,833 15 Cost: 16 Of gas to be used for inunicipal buildings. 17 Of gas to be used for street lights. . IS Of (lectricity to be used for municipal buildinc. g,gg5,ggg 19 Of electricity to be used for street lights. 310,5h0 20 Total of the abeve items to be included in the tax levy. 21 22 New construction to be includti :n the tax levy. ca Total amounts to be included in the tax levy. 2,116,110 5 CUSTOM Ells Names of the cities or towns in which the plant supplies Names of the cities or towns in which the plant supplies G AS, with the nuinber of custom (rs' mcters in each ELECTILICITY, with the numbcr of customers' rneters in each e Number of Customers' Number of Custorners' City or Town Meters. Dec. 31 City or Town Meters, Dec. 31 l Raynhan, Town of 3,180 5 Berkley, Town of 1,275 Lakeville, Town of 66 N. DMhton, Town of 131 6 Taunton, City of 18,7015 O TOTAL TOTAL 23,956 Al
- 5
. Annu. repori ot.. .. . .. .Taunton.!! uni.cipal..Lichting. Plant..... . ... . . ...v.., no.o o.c.mo.,3 . i9.Bo Al'PROPRINilONS SINCE Ill', GINNING OF YEAR
- i.
- s tinclude alw all iterns cl..trged direct to tax levy. even where no appropriation is made or required.)
l FOR CONSIRUCTION OR PURCH4SE OF Pl. ANT:
*At meeting 19 . to be paid from i $
*At meeting 19 ,io be paid from t -- - - - - - - - - -
TOTAI. $ l'OR Till: PSTi\ LATED C04T OF TifE CAS Olt El.F.CTRICITY TO ILE USED 11Y TifE CITY Olt TOWN FOR:
- 1. Stre t lights. . .... . . .. . .. ... .. . .. . . .
$ . 310,5140
?. Alunicipal buihlings. .
. . .. .. . .. 1,605,600 3.
TOTAL. $t',ll6,140 1
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*Date of meeting and wl.ett.cr rec.l.sr or n risL litere io -rt twn.15 nates or tu levy.
CIIANGES nX TIIE l'ROPERT)* 4
- 1. Describe briefly all the important physical changes in the property . luring the last fiscal period including additions, alterations or improvements to the works or physical property retired.
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- TOTAL COST OP l'LANT -ELL.CTRIC $
C
- 1. Report below the cost or ut;lity phr.t in service coding year. Oud. Iteme .nouldie included in co!umn c.Teet of such ai..ounts. $
according to prescribed accounts. (c) er (d) as apptcprint e. 4. Ree!2stiGentions or transfers within uti:ity piant 4
- 2. Do not include as adjustments, corrections of 3. Credit adjustme its of plant acesants should accounts should be shown in culamn (!). R additions and retirements fcr the current or the pre- be enclosed i.: parentheres to indicate the negative ;
Dalance , Deginning Bala nce 1,In3 Account ' of Year Additions Retirements Adjustments Tra nsf ers End of Year - No. (a) (b) (c) (d) (c) (f) (g) 1 1. INTANGIBLE PLANT $ 5 5 5 s s i8 2 !$
- c+
3 ;O 4 iU
'~
- 2. PRODUCTION PLANT 5
G A. Steam Production
.k 7 310 Land and Land Rights. 245,509 1h 245,509 1h !$
S J11 Structures and Improvements. 5,579,360.82 208,678.84 5,788,039.66 !" 9 312 Boiler Plant Equipment. . 13,827,211.87 34,185.64 13,'61,397 51 ! 10 313 Engines and Engine Driven je
.n
- :;4 Gen *--*ars. . .
11 314 Turbogenea.or Units. .. 12,h2h,667 35 2,504,365 16 274,832 90 12,699,500.25 !k 12 315 Accessory Electric Equipment. 2,932.70 2,507,297.86 !5 13 31d Miscellaneous Power Plant I97:7'I3-30 A AQE 90% 7h9_h1 j$ Equipment . . 14 15 Total Steam Production Plant. 'O 778 ; PN7 3h 5% f 3p)__ _ 35.307.hPfa L ig
- - c+
IG 11. Nuclear Production Plant 300 Land and Land Rights. : 17 . 13 321 Structures and Improvemnts. . 19 322 Reactor Plant Equipment. '. 20 323 Turbogenerator Units. . 21 324 Accesacry Electric Equipment. 325 Miscellaneous Power Plc.nt { , 22 ; Equipment. a; 23 Total Nade:- a roduction Plant o I I-t 2 6 O G - e e. .
(R) O f%. , s w/ \v) TOTAL COST OF PLANT -ELECTRIC (Continued) f 1 Catance 3 i Una Account Beginning of Year Additions Retirernents Adjustments Transfers Datance End cf Year
)3 No. (a) (b) (c) (d) (e) (f) (g) i 1 , C. Hydraulie Production Plant 3 3 3 3 3 3 i 2 330 Land and Land Rights. . .. !
3 331 Structures and Improvements. .. i 4 312 Reservoirs, Dams and Waterways : 5 333 Water Wheels, Turbines and i Generators. .. . .. . : 334 Accessory Electric Equipment.. : G j P. 7 335 Miscellaneous Power Plant Equipment . . . . j,P 8 33G Roads, Railroads and Bridges. j.3 9 Totall!ydraulie Production Plant 1 10 D. Other Production Plant [ 11 12 340 Land and Land Itights. .. . .. 341 Structures and Improvements. . . y" C jp 13 312 Fuel lioiders, Producers and Accessorio. . ... .. 507,163.09 507,163.09 !v
.0 14 313 Prime Movers. . .. . ,
15 344 centrators. . . . . 82,606.68 82,606.68 5 16 345 Access ry Electric Equipment. 402,423 99 I h02,h23.99 !E i ja 17 340 Miscellaneous Power Plant I'd Equiptnent. . .
!f 18 Total Other Production Plant. 99ds19116 009_lo rr6
- 35.771,941.h0 528_699.19 qgjino:gh ge3 i, 19 Total Production Plant. . ....
20 3. TRANSMIE310N PLANT ' 21 350 Land and Land Rights. 216,297.6h 1,509 15 217,806.79 . 22 351 clearin: Land and Rights of Way 22,600.64 22,600.64 5
;'3 352 Structures and Improvements. . 129,128.16 129,128.16
- 24 353 Station Equipment. . . . . . . . . * . 1,071,529.k2 1,871,529.k2 !
25 351 Towers and Fixtures. ... . . 849,092.25 849,092.25 1 2G 355 Poles and Fixtures. . . . 271,801 99 271,801 99 E 27 '35G Overhead Conductors and Devices 213,230.03 21,270.65 234,500 73 E us 357 Underground Conduit. ... . . 3,103 55 3,103.55 i~ II 29 353 Underground Conductors and Devices. . . . 6,112.80 6,112.80 . 359 Roads and Trails. . . 30 . . . 31 T3tal Transmission Plant.. 3,582,896.53 22,779.80 3,605,676.33 NE" M
, e t
c. TOTAL COS70F PLANT (Concludn!) { m I ; aiu nc. [ t j th.n nnc %n. ; tene A t esu rit ; et it.ir A%t.c n s Retirements Adjustments Transl ors CndcfYear ] No O) (t:) (c) (J) (e) (t; (g) :. l 1 .t. DISTllIBUTION PLANT S $ $ $ $ $ ( 2 300 Land and Lanc Richts. 189,056.25 189,056.25
~
3 3C1 Structures and Improvements. 101,70h.h3 101,'f04.k3 e a2 Station Equipment. 1,662,609 90 6,550.05 1,669,159.95 5 d',3 Storage Battcry Equipment. ' I c ac: Poles. To. vers and rixtures. 1,824,374.76 28,L80.12 1'852'854*88 1,792,819 17 66,571.02 44,194.50 1'g15'195* 9 i 7 3G3 Overhead Conductors and Devices acs Unstground Conduit. 1,369,278 97 2,053.65 a 9 307 Underground Conductors & nevices .1,454,506.00 14,h18.6h 47,600.00 'fff'
*' f !
3G3 Line Transforrr.ers. 1,102,863 72 35,391.77 2,700.00 1,135'555 49 h 10 11 30) Fervices. 26h,409.80 13,169.66 17,050.50 260 528.96 !" , 12 370 Meten. 9h5,h19.20 36,008.89 20,690.00 960,'738.09 ik
- o
. . , 371 Insta!!ations on Cust's Premees. !#
372 Leared Prep. on Cust's Premises.. 14 58L 203,1Q__ 19,359.28 11.h68.00 m och 38 ![ 15 IG 373 Strcet Lighting and Signal Systems Total Distribution Plant. _11,220,2h5.30___i___222.003.DS_ 143,7.03.00_. 11 Ashh5h h :r
- 5. GENERAL PLANT 17 18 3S0 Land and Land Rights. .
35,690.80 35,690.80 h 19 300 Structurcs and Improvements. 281,965.05 281,965 05 in " 391 O'Tice Furniture and Equipment. 87,'+99 00 5,584.63 93,083.63 20 21 39: Transportatien Equipment. 431,oT3 9h 125,330.00 33,746.52 523,h57.h2 h I* r3 stores Equipment. 1,739.81 1 739.81 22 39 i Toula, Shop and Garage Equipment 13,092.71 2.3 092 71 b 23 I 395 Laboratery Equipment. 14,837.h7 2.s 25 39G Power Operated Equipment. 1h,538.40 2,850.00 3'887*hf 17 -g3 g i{" 2G 397 Communication E<iuipment. 73,093.3h 18,730.20 8,958.29 82 865.25 11,719,gg ; 27 39s Misce !aneous Equipr.ent. . 9,60h.27 2,n s.22 399 Other T.m;:ible Property. 23 3 SbSk*19 154.610._05 _L_ h2,70h 01 1.075.890.03 7 29 Total General P! ant.
- E1,608_3168_.0?m 928.032,12 l 186 Jio7J1__ 52.sh9.792.33 ;
30 Total E:ectric Plant in Service. - Total Cost of Electric P! ant. 52.3h9.792.33 k 33 7 32 Isas Cost of Land, Land Rights, Rights of Way. . "(10,663.62 2 33 31 Total Cost upon which Depreciation is based. . ., 51,639,128.71 f; Propert'y. e th a a es. o oL c as a b s r rn d r stion
$f Af
. =
10
, ann uireportrv.. .
.Taunton . ! Ami.cip al. . Lichtin g . Finnt. . . ..v.ar eno:a oscrnze si. is. 80 I*
COMPARATIVE BALANCE SIIEET Assets and Other Debits , I 5 Dalance Beginntrig of Dalance increase I '"' 'A I Year End of Year Lins or (Decrease) No. (a) (b) (c) (d) 1' UT!!.lTY PLANT 2 ! cii ciiiity Piant - Electrie (P.17). $33,671,576.99 $33,230,576.683 (hbl,000.31) 3 ! 101 Utility Plant -- Gas (P. 20). . . 4' ~ ~~ 5 Total Utility Plant. 3E67177C99 33,2'30T576 60 -(hEl,00E317 6 7 8
'J 10 11 FUND ACCOUNTS 12 125 Sinking Funda.
13 12G Depreciation Fund (P.11). 2,975,508.41 3,145,224.56 169,716.15 14 125 Other S l cial Funds. 15 Total Funds. E,975508.16 3aET,22h36 169,716 17 16 CURitENT AND ACCRUED ASSETS I 17 131 Cash (P.14). 298,25 .65 491,2h8.58 192,993.93 1s ! 132 Spe cial Deposits. 174,878.61 193,872.18 18,993 57 19 ' 135 Working Funda. 1,700.00 1,700.00 20 141 Note s Receivable. 21 112 Customer Accounts Receivable. h,'lT2,654.31 5,1h5,586.17 372,931.86 22 143 Other Accounts Receivable. 188,630.75 134,016.9h (Sh,613.81) - 412a ! 14c Receivables from Municipality. 1,hh3,132.75 2,834.514.82 1,391,382.07 24 l 15i Maierian una supplies (P.13). 25 26 Ic5 Prepayments. 33,699 95 29,679.12 (h,020.83) 27 171 Miscenaneous Cunent Assets. 50,258.80 94,437.16 hh,178.36' 8,925,05E9l 1 961,8EKif
-- ~
25 Total Current and Accrued Assets.. 6 965,209.62 29 ' DEFEIU(ED DEDITS 30 151 Unamortized Debt Discount. 31 182 Extraordinary Property Losses. 32 185 Other Deferred Debits. ~ 33 Total Deferred Debits. 3: -
- ~~ ~
ai i Total Arets and Other DeLits. ~8E3 610,295 22~ Bh5,300,TS6 21 ~$f,~69,560 99 ( > . ~ . , O s e
11
' Ant.ual report of., .. .... ..Taun. ton..f.htgi,p.g. Lig11 ting.Finnt. . . . . . .. Year ended December a t.19 80 CONIPARATIVE IIAt ANCE SIIEET Liabilities and Other Credits b _
Dalance Deginning of Balance increase M' 'I ACC8""I Year
- End of Year or (Decrease)
Lene No. (a) (b) (c) (d) 1 APPROPRIATIONS 2 201 Appropriations for Construction. _ 3 SURPLUS 4 205 Sinking Pund Reserves. 5 20s loans Pepsyment. $ 8,902,000.00 $ 9,302,000.00 $ 400,000.00 6 207 Appropriations for Construction Repayments 32,l33 98 32,1633 98 7 208 Unappropriated Earned Surplus (P.12L 6.Thk,887.12 5,970.h70 95 (772,h16.17) 8 Totat Surnius. ~1K677_,323.10 -11,3.0M016 23_ __(372,K6.17.) 9 LONG TERM DEBT 10 221 Honds (P. 61 24,215,000.00 23,815,000.00 (h00,000.00) 11 031 Notes Payable (P. 7). . 12 Total Honds and Notes. 26,213_,000.00 1 _23,815,0.00.00_ _(h0A0a0.00.) 13 CUltRENT AND ACCRUED LIABILITIES 11 232 Accounts Payabic. 1,959,8hl.13 6 h,h27,961 5P. 2,468,117.39 15 234 Payables to Municipality. is 235 Customers Deposits. 175,347.15 181,962.15 6,6.5 00 17 236 Taxes Accrued 18 237 Interest Acerued. 779.307 51 768,253.14 (11,05h.37) 19 213 Miscellaneous Current and Accrued Liabilities 54,974.07 28,722.22 (26,211.85)~ F0 Total Curnnt and Accrued Liabilities. _2,96hlifh 86- _Lh66,89903 _2.h37.li26 tit gO 21 DEFERRED CREDITS d 22 251 Unamortized Premium on Debt. 87,h78.85 84,125.03 (3,353.82) 23 252 Customer Advances for Construction. 24 253 Other Deferred Credits. Ih,113.79 - (1 25 26* Total Deferred Credits. RE3ERVES 101,~5_9f 61i- _ 81Gi2503_ - (1 [4 113.79)_
,E67.6i) 27 260 iteserves for Uncollectible Accounts. 646,968.62 689,927.22 13,018.60 6
23 261 Property In urance Reserve. . 29 . 262 Injuries and Damages Reserves. 30 263 Pensions and Benefits Reserves. , 31 265 Miscellaneous Operating Reserves. 32 Total Rc*rves. . 6E6[68762] 689,927 22 43,.0_18.60_ 3't CONTRIBUTIONS IN AlD OF
. CONSTRUCTION ~
! 31 271 Contributions in Aid of Construction.. c ]
; 35 Total Liabilities and Other Credits. ~$h5610.295.22 Uh5.300.656.21 $1.690.560.99 State 14 tow if any earnings of the municipal lighting plant have been used for any purpose other than discharging indebted-ness of the plant, ths : arpose for which usod and the amount thereof.
1900 Transferred to City for Tax Reduction $ 828,076 Since 1929 Transferred to City for Tax Reduction 15,798,640 Since 1934 Paid Directly for Veterans' Pensions 732,111 o S
, e _ - - _, . . _ _ _ . . . - -. - __ _ . , _ , _ . . , __ _ , _ , _
12 A r.no: . ori .f.. .. .. .. . . . . N. N . . . hDN., M M.. . . . . . . . ..Yzr cnded D:ccmb;r 31.19.,0 0
- STATEAf ENT OF INCOh!E FOR TIIE YEAR .
Total increase or (Decrease) frorn Account Current Year Preceding Year Line No. O) (b) (c) 1, OPEllA' LING INCOA1E 2 100 Operating Revenues (P. 37 and 43) . $33,388,991 90 $ 3,915,h07 91 3 Operating Expenses: 4 401 Operation Expense (P. 42 and 47) . . 27,755,355.83 h,393,205 94 5 402 Af aintenance Expense (P. 40 and 47) . 1,870,582.h9 597,730.04 G 403 Depreciation Expense. 1,526,970.00 (503,213.58) 7 407 Amortization of Property Losses. S 9 408 Taxes (P. 49). 10 Total Operating Expenses. -31,152,908.32 4,487,722.40 II Operating Income. 2,236003.58 (57K314.49T~ 12 411 Other Utility Operating Income (P. 50), d 13 14 Total Operating Income. .,. 2,236,083.58 ( 572.314.49T-15 OTIIER INCOAli, 16 115 Income from Alerchandising, Jobbing and Cont ract Work (P. SI) 17 419 Interest Income. 66,777.89 50,6h7.06 Id 421 Ali<ccllaneous Sn. Operating Income. 19 Total Other Income. d3.77T.89 50,647.06 2o Total Income . 2,302,861.h7 _ 521,Mf.Tij)-- ( 21 111SCELLANEOUS INCOAIE DEDUCTIONS 22 425 Aliscellaneous Amortization. 25 126 Other Income Deductions. 24 Total Income Deductions. 25 Income Ikfore Interest Charges. __2 Q 2_s86_1.h7 (12h63143_)2 2.; INTEREST CIIARGES 27 427 Interest on 130nas and Notes. 1,84h,183.13 (25,928.33) 2a 428 Amortization of Debt Discount and Expense. 23 429 Amortization of Premium on Debt - Credit. 3,353.82 39 431 Other Interest Expense. 8,657 33 1,360.18 31 132 Interest Charged to Construction - Credit. 22 Total Interest Charges. l 8I[,T8C6b y (24,568~.~13T ' n NET INCONIE. liS3,37hTB3 (49T 099.28 F EARNED SURPLUS & Debits Credits Li"e
- t. a . (a) (b) (c) 31 203 Unapprcpriated Earned Surplus (at beginning of period). 8 86,7k2,887 12 3i 31 17 , 43311alance Transferred from Income. 45,374.83 O s 431 Aliscillar.cous Credits to Surplus (P. :'1).
39 43511iscellaneous Debits to Surplus (P. 21). 1,228,076.00 49 -136 Appropriations of Surplus (P. 21). 41 j 437 Surplus Applied to Depreciation. L.285.00 42 ~ 20, Unappropriated Earned Surplus (at end of period). 5,970,h70 95 i TOTALS 17J98 5h5 95- 07;I93;5h6 93 11 Al
14 Annual export of.. .... . . . . . . ... ..
. Ta.u.nt.on..l.'u..ni.ci. pal. Lighting Plant. . ........Y.nr end d D:cimbir 31,19E0 CAS!! IIAl.ANCES AT END OF YEAlt (Account 131) t S Items Amount (a) (b) 1 Oparation Fund. .. .. .. . . ... .. .
8Il91,2h0.50 2 Interest Fund. .. . . . . . .. .. 11,910.03 3 Dond Fund. . .. . . . . . . ;; 4 Construction Fund. .. . . . . . . . . . . . 5 Customer Deposit Fund 181,962.15 6 Petty Cash Ftmd 1,700.00 7 8 9 10 11 12 YOTAt 0 f,% ,620.76 MATEltI AI.S AND SUPPI.IES (Accounts 151-159,163) Summary Per Balance Sheet Amount End of Year Account g,c,,;c g,, Lini fio. (a) (b) (c) 13 Fuel ( Account 151) (See Schedule, Page 25). . 02,379,049.h2 14 Fuel Stock Expenses (Account 152). . 15 Residuals (Account 153). . Plant Materials and Operating Supp!ies (Account 151). . 455,465.h0 Merchandise ( Account 155). . . 18 Other Materials and Supplies (Account 156). . 19 Nucicar Fuel Assemblies and Components-In Reactor (Account 157). 20 Nuclear Fuel Assemblies and Components -Stock Account (Account 158) 21 Nuclear Hyproduct Materials (Account 159). . 22 Stores Expense (Account 163). . . 23 Total Per Balance Sheet, s. 2,034,514.62 DEPRECIATION FUND ACCOUNT (Account 136) Amount Lini tb. (a) (b) 24 DEBITS C2,975,508.41 Balance of account at beg.mnmg of year. 2a. . 2G Income during year from balance on deposit. . .
~
27 AE&'1*'tT[[W6Y$WtId*Yo"r " Res ervt! ' for Uni't ' I/9 ' Piq E ' t ' Int'.' 'Ptifddy.r 1 (00l000.00 23 /anount transferred for Reserve for Gen'1. Liability Inc. Deduct $ble 60 ,000.00 29 TOTAL 6.276.163.40 30 CREDITS 1,0h5,571.34 31 Amount expended for construction purposes (Sec. 57, C.161 of G.L.). g 32 Amounts expended for renewn!s, viz.:~ U Bond Principal and Interont Payments for Unit //9 2,085,367 50 33 34 lc 38 3,1h5,22h.56 39 Dal.tnce on hand at end of year. . . . . . . T OTAt. 1 .2 63-hv 40 M
(3 N p'* %, (& f.)
' (~~) .
)
8 UTILITY PLANT-ELECTRIC $
- 1. Report below the items of utility plant in service ceding year. Such items should be included in column effect of such a*nounts. O according to prescribed accounts. (c). 4. Reclassifications or transfers within utility plant 4
- 2. Do not include as adjus.ments, corrections of 3. Credit adjustments of plant accounts should accounts should be shown in column (f). 2 additions and retirements for the current or the pre- be enclosed in parentheses to indicate the negativo e Balance Beginning Adjustments Balan:o .
Lins Account of Year Additior.s Depreciation Other Credits Transfers End of ' fear i (b) (c) (d) (e) (f) (g) N o. (a) '
- 8 1 1. INTANGIBLE PLANT $ $ $ $ g 3 j5R o
- e
- :O
- ts 3
Iw 4
- 2. PRODUCTION PLANT j(
5 i$ 6 A. Steam Production 7 310 Land and Land Rights. . ... 2h5,509 14 245,509.1h 5'E 311 Structures and Improvements. . 3,267,380.72 208,678.8h 2643645.11 3,211,h14.h5 !O S
!g 8,826,268.60 34,185.64 399,237.95 8,461,216.29 9
10 312 noiler Plant equipment. . . 313 Engines and Engine Driven , g" Generators. .. .. .
!E 314 Turbogenerator Units. . .... 8,193,16h.65 27h,832 90 299,858.39 8,168,139.16 11 12 315 Accessory Electric Equipment.. 1,05h,705.39 2,932 70 64,460.Th ' 993,177 35 $H 13 31G Mi.ecellaneous Power Plant 1h4,8h7.15 8,009 11 T,627.67 1h5,228,59 @
14 Equipment. 21,224,684.98 21,731,875 65 528,639.19 1,035,829.86 !# 15 Total Steam Production Plant.
- 1G B. Nuclear Production Plant 320 Land and Land Rights.. ...... :
17 IS 321 Structu:: and Improvements. . .. : 19 322 Reacter Plant Equipment. . . .. . 20 323 Turbogenerator Units. . . r 21 22 321 Accessory Electric Equipment.. 325 Miscellaneous Power Plant [ 2, 23 Equipment . . . . . . . . . . ...... Total Nuclear Production Plant [ O 2 I er
. 2 2
I5 L, m 1
iE UTILITY PLANT-ELECTRIC (Continued) g F Baf a nca q Deginning Adjust nents Befance *g Lins Account of Year Additions Depreciation Other Cred:ts Transfers End of Year :: (g) ' P!o. (a) (b) (c) (d) (e) (f) ,?. I C. Hydraulie Production Plant S $ S $ $ $ i 2 330 Land and Land Rights. . . . .. i 3 331 Structures and Improvements .. 4 332 Reservcirs, Dams and Waterways : 5 333 Water Wheels, Turbines and - [ Generat ors. . . . . .. i 6 334 Access:ry E!ectric Equipment.... 3 7 335 Miscellt neous Power Plant 4 Equipr ent. . 8 336 Roads, Railroadr and Bridges. . To+al Hydraulie Production Plant g 9 :s 10 D. Other Production Plant :~ 11 340 Land and Land Rights. .. .. y 12 381 Structu es and Improvements. : ,0 13 342 Fuel Uniders, Producers and 2:8 Accessories. . . h36,791.03 15,214.90 421,576.13 f O 14 343 Prirne IJovers. 15 344 Gencreors. .. ... .. 71,044.97 2,478.19 60,566.78 IG 315 Access:ry E:e:tric Equipment. 3h6,285.34 12,072.73 334,212.61 % g 17 346 Miscel'aneous Power Plant y Equipment. . . . . .. 18 Totd Other Production Plant. '034'121*3# 29'Ib5*02- 02b A56 A9 10 Total' 1roduction Plent. ..... 22,535,996.99 528,639 19 1.065.595.68 99.cho _ oko Ao g 20 3. TRANSMISSION PLANT - 21 350 Land :nd Land Rights. . 216,297.64 1,509 15 217,800 (9 i 2*.: 351 Clead g Land and Rights of Way 22,600.64 22,600.64 ! 23 352 Structures and Improvements. . 121,752.39 3,701.68 118,050 71 h St 353 Station Equipment. . . . ...... 1,677,331.37' 56,145.89 1,621,185.48 } 25 354 Toweri and Fixtures. ... . 733,224.01 25,472 76 707,751.25 a 26 355 Poles nad Fixtures. 2h3,267.43 8,154.05 235,113.38 189,763 56 21,270.65 $ 27 05G Overhind Conductors and Devices 6,396.90 204,637.31 3 28 P357 Underground Condult. . .. 2,881.80 93.09 2,788.71 g 20 353 Underground Conductors and E Deview. . .. . ..... 6,032.45 183.37 5,849.08 E 30 359 Roads and Trails. . . . ... E g 31 Total Transmission Plant. 3,213,151.29 22,779.80 100,147 7h 3,135,783.35 8 U , 0 ' '
c o o - o. ,4~ UTILITY PLANT-ELECTRIC (Continued) {c Data nce E Beginning Adjustrnents Balance 3 tJne # , count of Year Addit %ns Depreciation Other L. edits Tra nsfers End of Year ? N o. (a) (b) (c) (d) (e) (f) (g) g 1 4. DISTRIBUTION PLANT $ $ $ $ $ $ I' 2 360 Land and Lud Rights. .. . . 189,056.25 189,056.25 i 3 3G1 Structures and Improvements. . . 9,836.56 1,017 0h 8,819 52 i 4 3G2 Statior. Equipment. ... . .. 468,058 93 6,550.05 h9,878.31 h24,730.67 ! 5 3G3 Storare Battery Equipment.. . I G 3G4 Poles, Towers and Fixtures. . . . . . 375,866.68 28,h80.12 52,350 50 351,996.30 ! 7 3G5 Overhind Conductors and Devices 1,030,663.99 62,230.12 51,445.80 1,041,448.31 7 8 306 Underground conduit. .... 512,755.41 2,053.65 39,252.66 475,556.40 ll 9 3G7 Underrround Conductors & Devices 679,h70.08 6,231.hh 43,635 19 642,066.33 y 10 3GS Line Transformers. . . 437,9h9 15 35,054.27 33,085 92 439,917 50 i' 194,8h9 53 11,108.76 7,932.28 198,026.01 11 12 3G9 Services. . 370 Meterr. . 342,sh8.07 35,76h.09 28,362 57 3h9,9h9 59 {r ' 10 371 Instalhtior.s on Cust's Premises. 14 372 Leased Prop. on Cust's Premires.. 1 15 373 Street Lighting and Signal Systems 305,814.16 18,200.28 17.hc6.09 70%51R-35 IG Total Distribution Plant. . .
,546,868.81 205,672.78 32h.h56.36 _4 ImA;nA5 m3 $
17 5. GENERAL PLANT h 18 ass Land and Land Rights. . .. 35,690.80 ' 35,690.80 C. 19 390 Strue.ures and Improvements. . 62,596.h5 4,0h1.36 58,555 09 5 20 391 Ottice Furniture and Equipment. 48,057.52 5,584.63 3,281.21 50,360 94 g 21 392 Transportation Equipment. .. 112,559.41 125,330.00 24,770.86 213,118.55 g 22 393 Storca Equipment. . .. . 66.32 3.38 62 9h y* 23 394 Tools. Shop and Garage Equipment 4 24 395 Laboratory Equipment. .. . 6 809h 11 Gb9*93 b 822h*10 ! 25 396 Power Operated Equipment. .. 4,725.41 2,850.00 1,090.38 6,h85 03 y 2G 397 Comir.unication Equipment. .. 52,204.79 18,130.20 2,192 78 68,1h2.21 - , 2,030.65 2,115.22 720.32 3,425.55 g 27,y3GS Miaeellaneous Equipment. 23 399 Other Tan::Ible Property. ... . e 29 324,825.h6 154,010.05 36,770.22 hh2.055.20 g Tot 21 General Plant.. ....... 30 Tot 21 Electric Plant in Service. . 30,670,8h2 55 911,101.82 1,526,970.00 30.05h.97h.27 g 31 104 Utility Plant Leased to O". cts... O 32 105 Propety neld for Puture Use. . . 3,006,734.hh 1,100,899 99 (928.032.12) _3 175.602.31 h 33,671,576.99 2,014,001.81 1,526,970.00 (928,032.12) 33,230,576.68 8' a ti t P art El e . ,
3 PRODl'CTION FUEL AND OIL STOCKS (Included in Account 151) (Except Nuclear .Materints)
$m
?
- 1. Report below the it:fermation called for cencerning prc+ etion fuel and oil stocks. j
- 2. Show quantities in tons of 2,000 lbs , gal., or Mef., whichever unit of quantity is applicable. R.
- 3. Each kind of coal or oil shou!d be shown separately.
- 4. Show gas and electric fueh separately by specific use.
~
Kinds of Fuel and Oi! . Total Cost Quantity
% 1_ 06 Oil phl yg Oil Li tm item Cost Qua ntity Cost N o. (a) (b) (c) (d) (e) (f) '~ '
On Hand reginning of Year. 5 1,o15,529.60 45,978.48 8 982,408.20 1,047.62 1 8 33,121.40 2 Received During Year. 15,28b99h.-92 53 h358,60 53,906.89 13r M 535.Th 1,891_,159.18 [ 3 TCTAL. . 16a ni 52L 52 3 581,33 Loa _- 1h,376,9h3.9h 54,95h.51 1,92h,580.58 i8 4 Used During Year (Note A). . . jf 5 Boiler 011 9,992,890.h7 426,508.84 9,992,890.h7 jg C Gas Wrbine 3,929,584.63 72,963.17 2,025,515 73 54,h30 70 1,904,068.90 j5 , s 9 :o 10 !$ 11 Sold or Trar:sferred. .
!h 12 TOTAL DISPOSED OF. 13.922.h75.10 h99.472,_01 12.018.406.20 Sh.h30.70 1.904.0 @ .00 i[
10 BALANCE END OF YEAR. 2,379,049.h2 81,865 07 2,358,537 74 523.81 20,511.68 j g. Kinds of Fuel and Cil - Continued H= 0 iM Lin. !!em Quantity Cost Qua ntity Cost f No. (e.) (h) (!) (j) (k) *
' s+
14 On IIar.d B3 ginning of Year. .. . . S S - 15 Received During Year. .. I
^
16 TOTAL.. ... . ... . 17 Used Durin.g Year (Note A). . ... . . . g IS 19 { 20 1
1 ~ P 22 .$
3 23 $ 24 Said or Transferred. . .. . .. .. .. . .. .. ,3 23 TOTAL DISPOSED OF. . . . . . .. . . g 2G BALANC3 END OF YEAR. . . .. . . . . ja O ( Note A -Indicate specific purpose for which used, e.g., Boiler Oil, Make Oil, Generator Fuel, etc. O u . O e G. -
. 21 Annual report of.. . . ....
...T@lEl.tgn ,harl .gipa..l...L.i.gh..t..i.n..g..P..l.a.n..t....
i .. . ..... Year endvd December 31,19.3 0 MISCLLLANEOUS NONOPEltATING INCO3fE (Account 421) Line item Amount 1 No. (a) (b) '. j __ 1 2 3 4 + 5 TOTAL 6i OTIIEll INCOME DEDUCTIONS (Account 426) Line item Amount No. (a) (b) 7 8 9 10 11 12 13 TOTAL 14
.T11SCELLANEOUS CltEDITS TO SUl(PLUS (Account 434)
. Line item Amount No. (a) (b) 15 16 17 18 19 20 21 oo
~~
TOTAL 3flSCELLANEOUS DE111TS TO SURPLUS (Account 435) , j tin,' stem l Amount ge.n (a) (b) n To City for Reduction of Taxes 828,076.00 25 20 Bonds h00,000.00 27 25 09 30 31 TOTAL 1,228,O]6,QQ APPROPRIATIONS OF SUltPLUS (Account 436) Line I Item Amount No. l (a) (b) ) 33 31 35 ( ,, 36 37 , 38 * , 39 TOTAL 40 - 3.!
23 , Annuit r port of.. .. . . ..Taunton..MRILiC1Dal..I,1chting..Elant. . .. var enard o+cemb$r 31,19 80 MUNICIPAL REVENUES (Accounts 482,444) , (K.W.II. sold under the provisions of Chapter 269, Acts of 1927) Gas Schedule Cubic Feet Revenue Received f . No. No. (a) (b) (c) (d) 1 482 0 3 3 __ - TOTALS Electric Schedule efK K.W.H. Revenue Received ts (a) (b) (c) (d) 5 444 Municipal: (Other than Street Lighting) 6 City of Taunton Building 3 1,975,072 162,0h2 98 8.20hh 7 City of Taunton Power 21,547,hh0. 1,19h,968.54 5 5458 8 9 10 23,525312
~
TOTALS 1,35K611.3f- 57690 13 Street Lighting: f City of Taunton 5,006,691 218,650.00 h.3672 IG
~
TOTALS 5,006,691 2I6T50.00 15 3 672 26,529,203 1,575I661.32 - 55530 TOTALS i PURCIIASED POWER (Account 555) Line Ine s' as d
# 8 " ' '"* ^*""'
No. (a) ( ) (b) (c) (d) (e)
,,g ~
Cleary-Flood
~, {bntaup Electric Cc.
Bus Yard 115 KV n9,899,233 h,8hh,914.29 4.0h08
. ., p'aine Yankee " "
23,h18,040 hh9,613.45 1 9199 Vernont Yankee " " " 13,710,3h2 360,7n.03 2.6309
~]l4 ~.
Vermont Elec. Pover Co. 3oston Edison Co. 30,979 000 723,857 11 2.3366 9,857,720 523,128.91 5.3068 Uev England Power 0o. " " " 3.h80,000 159,633 97 h.5872
}(;,I!evEnglandPowerExchan ;o" " "
52,674,000 2,717,791 50 5 1596 - TOTALS 254,055,3'35 9.779,650.26 3.8500 SALES FOR RESAI.E (Account 447) o h ch voItag "Def[vered K.W.H. Amount No.
, cfrfe' c (a) (b) (c) (d) (e)
~
! Raynham 6 Taunton I
Brockton Edison Co. Boundary 4160V 78,890 5,926.71 7 5126 3., Cleary-Flood y Montaup Electric Co. Bus Yard 115 KV 176,198,675 10,621,127.65 6.0279 3, Cleary-Flood 3., New England Power Bus Yard 115 KV Sh,886,850 2,545,715,91 4.6381 36 Ex hange 37 ' 33 231,16h ,415 -- 13,172,770.27 _5.698h 39 TOTALS f6R
e] ) (v) \ w
'h%
ELECTRIC OPERATING REVENUES (Account 400) y
- 4. Unmetered sales should be included below. The j
- 1. Repert below the amount of eperating revenue for added for billing purposes, cr.e customer shall be counted ,
the year for each prescribed account and the amount of for each group of meters so added. The average number details
- 5. Classification of Commercial of such and sales should Industrial te given oin a footnote.
Sales. increase or decrease over the preceding year. of customers means the average of the 12 f!gures at the ta to eman (or o retal) an close of each month. If ount 4j2, ace
- 2. If increases and decreases are not previously reported figures explain dentialfr.om any , derived meonsistencies.
service classificat,the, ion sneludes customer count in customers counted the resi, classifi ation regularly used by the respondent if such - more than once because of special services, such as water basis of classification is not greater than 1000 Kw of
- 3. Numier of customers should be reported on the :
basis of number of meters, plus number of flat rate heating, etc., mdicate m a footnote the number of such denmnd. Accounta. See Account Explain basis 442 of the Uniform System cf of dassification. accounts, eteept that where separate meter readings are dupliente customers included in the classificalion. , Operating Revenues KHowatt. hours Sold C to7ners pe M nth l !8
*A increase or increase or increase or Amount for (Decr ease) from Amount for (Decrease) from Number for (Decrease) from ih
*t Preceding Year Year ! receding Year c Year Preceding Yea r Year Account (g)
Una N o. (a) (b) (e) (d) (e) (f) ] f, 1 SALES OF ELECTRICITY $ $ is 2 440 Rest 6 ntial Sales. . 8,258,606.13 1,007,693.39 117,351,505 6,609,3h2 21,031 872 W
- w.
l ro 3 412 Commercial and Industrial Sales: 4 Sm tu (or Commerdal) see instr. 5. . 3,910,036.81 593,629 16 52,602,257 3,836,144 2,398 96 % ' Large (or Industrial) see instr. 5. . . . 6,h16,G33.6G 7n,506.h1 108,576,380 (11,894,770) 107 i-' 5 4:4 hiur icipal Sales (P. 22) . . . 1,375,661 52 186,lhh.19 28,529,203 ( 1,291,248) in 2 l c 7 445 Other Sales to Public Authorities. . . 34,656.6h 813.13 401,016 1,290 3 h" M J S 44G Sales to Railroads and Railways. . . b, I 9 443 Interdepartmental Sales. . . .. ?d 10 443 Alimllaneous Electric Sales. . .... Total sales to Ultimate Consumers. . . . 20,195,794.78 2,499,786.28 307,460,361 ( 2,739,242) 23,650 970 h
;g 11 13,172.770.97 1 ;h 3c;; ohl _ h3 o31_ g4h;h ie: (6g,799,375y 3 12 447 Salci for Resale. . . .... ....
(65.467.617) 99 Ac;9 ovn - 33,368,565 05 Tott' Sales of E!cetricity* . .. . 3.935.727.71 558.621776 : 13 14 OTilER OPERATING REVENUES 5. All custoners netered at primry voltage are i concidered as *Odustrial calec. i 15 450 Forfdted Discounts.. . ...... : 1G 45131iscellaneous Service Revenues. . . . .
- Includes revenues from application of fuel clauses 3 g J U ,983 .
7.h,,,,, -g 17 453 Salm of Water and Water Power. . .
- 18 451 Ikut from Electric Property. . . ...
Tota! KWII to which applied. . . . . . . ..... . . . 300 '953 ' 787
.. }
455 Interdepartmental Rents. . . 19 '
)
20 45s 0:he Electric Revenues. . . . . . . .. 20,h26.85 (20,319.80) E
1
.-> u 23 -**
24 20,426.65 (20,319.80) E I 25 Tuta; Other Operating Revenues. . . . . . Tota Electrie Operating Revenues.. . 33,388,991 90 3,915,407 91 U- !: : ll 2c 1
3s Ann.,a r ,m,i or.. . Taunton ,l'unic.i.p.a..l..L. i..gh..t.in..g. P.la..n..t.. . ..... .. ... Year enaca December n.19fd) SAI,1;S OF 1:1.1:GTitICITY TO UI. TIM ATI: CONSUMI:ItS Report by account, the K.W.l!. wid, the amount derived and tha numlier of customers under each filed schedule or contract.
- Contract s. des and unt,illed saks may lie reporLtd separately in tot d.
^
- Humber of Customers g (facr thHs Rendtred)
(cents) Line Account Schedute K.W.H. Revenua (0.0000) July 31 Decomt,er 31 .r . No. t4o. (a) (b) (c) (d) (e) (f) i hh0 nesidential "A" 67,380,477 5,097,h92.70 7.5652 15,628 15,945 2 440 Residential "A-1" 32,70.!,095 2,316,951.h4 6.473h 4,180 h,18h a h40 Residential "A-2" 17,263,933 1,04h,161.99 6.0b65 1,355 1,430 4 hh2 Commercial "H" 20,159,768 1,678,473 94 8.3259 1,766 1,814 3 442 Commercial " CAB-1" h,9hh,620 283,0h0.77 5.7242 11 9 c hh2 Comercial "P-1" 23,31Y,h86 1,649,266.09 T.0731 236 2h3 7 h42 Camacreial "HP-1" 274,022 16,665 98 6.0820 37 40 s hh2 Commercial "GG-H" 2,728,60h 174,730 74 6.h037 69 71 9 hh2 Commercial Private 10 Area Lighting 1,177,757 107,859 29 9 1580 263 278 11 hh2 Industrial "P-2" 108,576,380 6,416,833.68 5 9100 106 108 12 City of Taunton 13 hhh "GS-H" 79,860 5,309 00 6.6h79 2 2 24 "H" 1,103,315 91,Th9.88 8.3153 78 80 is "HP-1" 88,125 5,h36.65 6.1692 10 10 ic "P-1" 703,772 59,5h7.45 8.4612 8 8 17 "M-1" 13,648,520 759,753.1h 5.5666 5 5 is "P-2" 7,898,920 h35,210.h0 5 5037 7 7 19 Street Lighting 5,006,691 218,650.00 h.3672 1 1 20 21 h45 Flat Rate B 12,405 1,h61.74 11.8077 5 1 1 22 445 Flat Rate R 253,380 22,812.60 9 0033 1 1 23 445 Flat Rate H.D. 135,231 10,379.30 7.6752 1 1 24 25 2G 27 28 29 30 31 32 33 , 35 35 3G 37 3S 33 40 4I
.g 3 a 43 1
4G 47 4 '3 , 49 TOTAL SALES TO ULTIM ATE 307,460,361 20,195,794.78l6.56M'~ 23,765 24,238-CONSUMUltS (P.me 37 line 11)
Tzunton Milnicipal Lighting Plant 83 A n nui t ri por t s f . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .Yu r e nd I d Deci m ta r 31. ' 9. . . .
, ELECTRIC OPEltATION AND SIAINTENANCE EXPENSES O 1. Enter in the spneo provided the opt ration and maintenance expences for the year.
( ) v 2. If the increases and decreases are nat derived from previously reported figures explain in footnote. Increase or Account Amount for Year ID r $ '" g p di ca No. (a) . (b) (c) 1 POWER PRODUCTION EXPENSES $ $ 2 STEAM POWER GENERATION 3 Operation: 242,437.82 26,820.21
~
1 500 Operation supervision and engineering. . . . . . . . . . .. . .. 1h,007,159 33 1,149,156.37 5 501 Puel...... .... .. . .... .. . . . . ... .. . 700,347.43 2,350.h2 6 502 Steam expenses. . . . . . . .... ......... ....... .. 7 503 Steam from other sources... ..... ... . .......... . .. 266,539.00 8 501 Steam transferred - Cr.. . . . ... . . .. ... . .. 9 505 Electric expenses. ... .. . . .. . . ......... ... 10 50G Miscellaneous steam power expenses. . . . . . . . . . . . . . . . . . . . . . 11 507 Rents. . .. . . . . .. ... ... .. 14,949,9h4.58 1,h44,866.00 12 Total operation. .. . . . .. . .. ....... 13 Maintenance: 1,346,039.65 479,762 93 14 510 Alaintenance supervision and engineering. .. ... . . . . . . 15 51131aintenance of structures. . . .... . ..... .... 10 512 3f aintenance of boiler plant . .. ... .... . .. . 17 513 31aintenance of electric plant. . . . ... ..... ... 18 514 Maintenance of miscellaneous steam p ::nt. . . . .. .. . . 1,3h6,039.65 479,762 98 [i 19 Total maintenance. .. ... . . . ... 16,295,964.23 1,924,620 96 20 Total power production expenses -stcam power. . . 21 NUCLEAR POWER GENERATION 22 Operation: 23 517 Operation supervision and cr.gineering. . . . .. . .. . ..... 24 518 Puol.. .... . . . . . . . . 25 519 Coolants and water.. . . . . .. .. .. 26 520 Steam cxpenses. . . . . . .. . .. . .. 27 521 Steam from other sources. . . .. .. .... .... .. 28 522 Steam transferred - Cr.. ... .. . .. .. ........ .. 29 523 Electric ixpenses. . . . . . .... . . . 30 521 Miscellaneous nuclear power expenses. . . . . 31 525 Rents.. . ... . .. ... . ... .. . .. .. . 32 Total operation. . . . . .. . .. . . , 33 Maintenance: 31 52S Maintenance supervision and engiacering. ..... . . 35 529 Maintenance of structures. . . . . .. . . ... . .. 3G 530 Maintenance of n actor plant equipment. . ..... . . 37 531 Maintenance of electric plant. ... .. . ... .. 38 532 Maintenance of miscellaneous nuclear plant. . . . 39 Total maintenance. . .. . . ... . .... . ( 40 Total power production expenses. nuclear power. . . 41 IIYDRAULIC POWEll GENERATION 42 Operation: 43 535 Operation supervision anel engir.ecting. . .. . . .. [U 41 45 L'IG Water for powar. .. L'17 Jiydraulie equh.es. .. . 40 5381:lectric cx1x nses. . . ... .... .. . .. .. .......... i 47 539 Mi cellaneous hydraulic power generation expenses. . . . . 48 510 itents. . . . .. . . . . ..... . .. ..... .... . .
.o e Tnbl ep. rat i..n .
40 Annu: re post of.. . Taunton !!tinicipal Lic,hting Pland 80
. . ... . Year andad tucirnber 31.19..
I:llCTitIC Opr.itATION AND MAINTENANCE 1:XITNSES- Continued O Increase or Lino Account Arnount fc.r Year (De r a ) roni e40 p, t (a) (b) (c) Q 1 IlYDItAULIC POWER GENEllATION - Continucd $ $ 2 Maintenance: 3 511 Maintenance cupervision and engineering. . 4 f.12 Maintenance of structures. I 5 513 Maintenance of rearvoirs. dams and water .ays. G fn1 Maintenance of clectric phnt. . . . . 7 545 Maintenance of rniscellaneous hydraulic plant. 8 Total rnaintenance. . 9 Total power production expenses - hydraulic power. 10 OTIIElt POWElt GENEltATION 11 Operation: 12 SlG Operation supervision and engineering. 13 517 l'uel. 14 54S Generation expenva. . 15 549 Miscellaneous other power generation cxpenses. IG L',0 Rents. 17 Total olmration. . . 18 Maintenanec: 19 551 Maintenance surervision and engineering. 20 5fs2 Mainten ince of structures. 21 571 Mairitenar.ce of gneratir.;: and eketric plant. 22 LSI Mnir.tenance of rnis.t!!ar.cous other power gencration Ilant. 23 Total rnaintenance. 21 Totr.1 pot.er predmtion expenses - other power. 20 OrnElt POWEl: suPP. x EXenNsEs 9,779,650T26 %43 1G5ho.90 er. 557, purch.mi power. 27 556 Sy.< tem control and itad dispatchin::. 99,819 95 (3,205 33) 2s 557 Othcr noenses. . 9,879,470.21 2,43' 335.57 29 Total other power sup;dy expenses. 26,175,k5Ekk T,355I9bkI55 30 Total power proucction exprmes. 31 TIIANSMISSION EXPENSES 32 Operation: 8,262.27 (3,965 14) 3a 5co Op.-rati..n supervision and enginee. ring. 30.19 30.19 31 001 m,d dicpatching. 35 06.! S'.atio , apenscs . 3G SG3 Overhead line expensrs. 37 ~,Gl Underr.round line c.xpenses. 38 f.r,5 Tran .rnis, ion of etcctricity by other 39 Scc niscenancous tr;.nsa.i sim noen es. 131,703.83 61,372.77 40 SG7 Itents. 139,996.2r' 57,437.82 ,. 41 Total operation . 42 Maintenance: 23 2.90 9 E SI l'l SM Maintenance supervision anil engin(erirg:
.! ! 5% Mai.itt a.ince of struct urH.
4 f, f.70 M ::!nf en.itu e r.I stati"n < to;f.P. erd . 16 *4 ! M:.ii.:. r. awe t.f v. crh c.! ' 4.c.; . 47 572 Maint. nance of un.l r. ri.un.1 lin.'s. Is y,a u cinn :.uno, of ntis van.m . tran nhion plant . 2,602 90 993 5T
~142~,599.'19 ~ ~~- 58331:39 --~
p; Tot..i nni,o enanie. . . 9 g b k .. - __ - . - .- .~
Annual report of... . . .. .. .aunpon,,@,igJp,al,,Q,g,$1pg,,$an.h.. . . ... ...Yst:r and14 Dawnter 31,19 60
- ELECTRIC OPERATION AND MAINTENANCE EXPENSES-Continuta increase or Anmunt for Ym I '*
, Acc unt p c,d gY tina
["N 4 tao. (a) (b) (c) ( 1 DISTHiliUT10N EXPENSES $ $
~
- Operation:
3 5s0 Operation sunnbion and engineering. . . .. 71,244.51 (22,0h5.hh) 4 ' 81 Load dispatching. . 5 . 226,263.18 47,622.49 L 582 station expenses. . h1,517 10 2,290.18 6 583 Onrhead line expenses. . 7 581 Undergrou:nl line expnses. . . .. . 8 585 St rect lighting and signal system expenses. (161.h3) 9 556 Meter expenses. . . 56,721.h6 11,384.95 10 SS7 Customer instal!ations expenses. . . . 57.60 57.60 11 588 Aliscellaneous distribation expenses. 84,60h.85 19,612.17 n 5s9 Hents. . . . . 13 Total orration. .. . . . hTO,h68 70 STQf60.52 14 Annintenance: 15 590 Maintenance supervision and engineering. 27,339 98 8,128.69 16 591 Maintenance of structures. . . . 17 592 Maintenance of statloa equipment. . 18 593 Maintenance of overhead lines. . . . .. 330,101.01 69,916.56 19 591 Maintenance of underground lines. . . 20 595 Maintenance of line transformers. . .. 2,793.70 2,059.00 21 596 Maintenance of street lighting and signal systems. . . . . h9,273.13 10,131.16 22 597 Maintenance of meters. . . 32,211.88 9,696.58
~
23 598 Maintenance of miscellaneous distribution p!'nt. . 107.34 6 (2,795.91)
- 4 Total maintenance. .. . . hT2 727~ M - 97,136.~08-~
25 Total distributien expenses. . .. 151.896.60 f~^). (
'u ::G CUSTOMER ACCOUNTS EXPENSES 922 236_.54 27 Operation:
28 901 Suprvision. . 29 902 Meter reading expenses. . . 86,318.87 1,619.68 30 903 Customer records and co!!cetion expenses. 305,312.13 17,384.29 31 901 UncollectitJe accounts. h2,000.00 32 935 Misce!!ancour customer accounts expensea. (1,1814 7.7L (6.73a._88) 33 Total customr:r accounts expenses. . 1+32,446.23 _ 12,27L_Q9 31 SALES EXPENSES 35 Op-ration: as 911 sunrvision. 3,323.37 3,323.37 37 912 Demonstrating and .elling expenses. 38 013 Advertising exper.ses. . . 39 916 Misce!!aneous sales expanses. .. 40 Total sales expenses. . .. 3,325.T37 3,323.37 41 ADMINISTRATIVE AND GENERAL EXPENSES 43 Operation: 43 920 Administrative and general salarlem 175,625 91 39,532.45 41 921 Odice supp!!es and expenses. Th,109 19 12,387.68 45 922 Administ.rntive ev.penses transferred - Cr.. 46 923 Outside services employed. . . 282,504.73 (36,861.07) 47 924 Property in<urance. .. . 156,731.03 (10,687.81) 48 925 injuries and damages. 170,055.77 (9,010.37) 49 92G En.ployee r ensions and benefits. . . . 876,637 98 341,776.00 50 928 Regulatory commission expenses. . .. . (2,900 78) () 51 52 9"9 Duplicate charges - Cr.. . .. 930 Miscellanmu eneral expenses 2 8 w~ e.. .9.33.Eransportat'i..o.n. . Expenses . 10d'"'oh,1. 8 .1 .25h h2 '079. 31.003.16 385;2114 7 M Total operation . .. ,
-1,869,766. h9-i
42 Annutt repwt (f.. ... N. E..b.IUh8bN.1dChD1U6 11Imt... . . ..YIar endid Dc cember 31.19..g EIJ.CTRIC OPERATION AND MAINTENANCE EXPENSES-Continued increase or Account Amount for Year recedin ea g (b) (c) N 2, (a) _ _ _ . _ _ _ 1 ADMINISTRATIVE AND GENERAL EXPENSES- Cont. $ $ 2 Maintenance: 3 932 Maintenance of general plant. - 79,812.10 19 837.h1 Eoi,M8 98 4 Total administrative and gcneral expenses. 1 91i9 578.55 , 5 Total Electric Operation and Maintenance Expenses. . 29,625,938.32 h.990.935.98
SUMMARY
OF ELECTRIC OPERATION AND MAINTENANCE EXPENSES Line F u nctional Cf assifica tian Operation Maintenance Total No. (a) (b) (c) (d) 6 Power Production Exnenses $ $ $ 7 Electric Generatior : 8 Steam power. 14,949,9hh.58 1,346,039.65 16,295,984.23 9 Nuclear power. 10 Hydraulic power. 11 Other pouer. 12 Other power supply expenses. 9,87L,h70.21 _ ____9,879,h70.21 _ 13 Total power production expenses.. 24,829,h14.79 1,3h6,039.65 26,175,454.hh 14 Transmission Expenses. 139,996.29 2,602 90 142,599 19 15 'Distributien Expenu. 480,h08.70 442,127.84 922,536.54 IG Customer Accounts Expenses. h32,446.23 432,446.23 17 sales Expenses. 3 323.37 3,323.37 18 Administrative and General Expenses. 1
- 0b e,Tbb= E S--- 79,812.10___ 1,9h9,578.55 19 Total Electric Operation and 20 Maintenance Expenws. . 27,755,355.83 1,870,582.h9 29,625,938.32 21 Ratio of operating expenses to operating revenues (carry out decimal two places, e.g.: 0.00%) 93.30--%
Coint t.te by dividing Ihvenues ( Acet. 400) into the suoi of Op ration nr.et Maintenarice Espenace (Page 42 Lno 20(d?. l>qrennunn (Acet. 403) and Arnortiration (Acet. 407).. 22 Total sair. ries and wages of electric department for year, including amounts charged to oper-niing expenses, construct. ion and other accounts.
$ 2,531,364.70 23 Total number of employees of dectric department at end of year including administrative, opt rating, tr.aintenance, construction and other employees (including part time employees)
I O
- ,- . m ,..a -hm.m.. m - . + . + 4. 4 -+4 O r .
.b i \ ) i b(~h .
TAXI 3 CIIAltGED DUltlNG YEAlt
- 1. This schedule is intended to give the account dis- 3. The aggregate of each kind of tax should be listed number of the appropriate balance sheet plant account
( tribution of total taxes charged to operations and other under the appropriate heading of " Federal," " State," and or subaceount. i final necounts during the year. " Local"in such manner that the total tax for each State 5. For any tax which it was neceury to apportion
- 2. Do not include gasoline and other sales taxes which and for all subdivisions can readily be ascertained. to more than one utility department or account, state .-
have been charged to necounts to which the material - in a footnote the basis of apportioning such tax. : on which the tax was levied was ch. rged. If the actual 4. The necounts to which the taxes el ged were nis- 6. Do not include in this schedule entries with respect . or estimated amounts of such taxes are known, they tributed should be shown in columns (c) t.o Show to deferred income taxes, or taxes colk eted through p.ty-7.hould be shown as a footnote and designated whether both the utility department and number o(h). f account roll deductions or otherwise pending transmittal of such estimated or sctual amounts, charged. For taxes charged to utility plant show the taxes to the taxing authority. : To'
- Distribution of Taxes Charged (omit cents) .
Ch rged (Sh w utility department where app!! cable and account charged) . During Year Electric Gas Line Kind of Tax (omit cents) (Acet. 408, 409) (Acct. 408. 409) j>3 No. (a) (b) (c) (d) (e) (f) (g) (h) (i) (D ; I # 50 None : a 4 ir.
- p O
!b a
8
- !N 9 -
10 !$u 11
*ya
- 1) m
- P 13 14 g
;ce 15 ',
16 17 IS 19 20 2
- 21. }
23 2 24 $ 25 4 w 26
~.
27 .* 23 - To m g 1
a Annu.,i report on.. . . . . . . .. Tannton.!!unicipal..L1ghting.Elont.... . .. .wr ended oeceinber 31. 19. 8 0 OTIIElt UTII.ITY OPEl(ATING INCOME (Account 414)
!!eport below the particulars called for in each colun.n.
Amount Gain or Property Amount of Amount of of Operating (t oss) from Line Investment Revenue Expenses Operation tb. (a) (b) (c) (d) (e) 1 o liono 3 4 5 6I 7 8 9 10 11 12 13 14 I f, If; 17 18 19 20 21 22 23 21 25 . 2G 27 28 29 30 31 32 33 31 35 3G + 37 33 39 40 41 Il 41 l 11 45 4G If
?>0
~
7,} , TOTALS , I
Annual report of.. .. W
.... ...TauntOn.. Municipal.. Lighting.. . . . . . .. var ended oscambir 31.1980 *
- INCONIE FitO51 MEftCIIANDISING, JollIIING, AND CONTitACT WoltK (Account 415)
Itepart by utility departments the revenues, costs, expenses, and net income from merchandisin::. jobbing, and contrac t work during year.
, Other Line Electric Gas Utahty item Department Department No. Department Total (a) (b) (c) r ._ _ __
(d) (e) 1 Itevenues: $ $ $ 2 Af erchandise sales, less discounts, $ None 3 allowances and returns. . . 4 Contract work. . 5 Commissions. . . 6 Other (list according to major classes).
. 7 8
9 10 Total llevenues. . . 12 13 ' Costs and Expenses: 14 Cost of sales (list according to major 15 clasres of cost). 16 17 18 19 20
- 21 22 O
v 24 25 26 Sales expenses. . . 27 Customer accounts expenses. . . 28 Administrative and general expenses. . 29 30 , 31 32 33 al 35 3G 37 L 38 I 39l 40
;. 41
- y 42 43 l 44
! 45 I 46 l 47 3 48 ( V)' 49 50 TOTAL COSTS AND EXPENSES ~~~~ 51 Net Profit (or Loss) A
*/ ,
i
52 Annnat esport of.. .. . .. . . . .. . . .. Year anded December 31,19... SAI.l:S FOR ItESAIS. (Account 447)
- 1. I!epart udes during year to othe- _lectric utilities and and place an "x" in column (c)if sale involves export across to cities or other public authorities for distribution to a state line, ultimate consumers. 3. Iteport separately firm, dump, and other power sold to
- 2. Provide subimadings and clawify sales as to (1i Associ, the sarne utility. Describe the nature of any sales classified ated Utilities,(2) Nonassociated Utilities,(3) Municipalities, as Other Power, column (b).
(4) It.E.A. Cooperatives, and (5; Other l'ublic Authorities. 4. li deliver) is made at a substation indicate ownership For each sale de.sirnat e st at ist ical cir sification in column (b), in column (e), thus: respondent owned or leased, Its; thus: firm powr r, FP; dump or surplus power, DP; other, G, customer owned or leased, CS. c a Kw or Kva of Demand 1 hE $ (Specify Which)
,L' a
;" o5 4e e
3 Average S les to j3 gy Point of Delivery E Monthly Annual Gy gy j Contract Maximurn Maximum Line u w Demend Demand Dernand No. (a) (b) (c) (d) (e) (f) (g) (h) 1 2 3 4 5 6 7 8 9 10 11 12 15 e 16 17 18 19 20 . 21 22 l 23 21
?5 2G 27 28 29 30 I
31 32 33 l 31 l 35 36 37 l 40 11 l
- .u
OJ Annual report of.. . . . . . . ... ... ....... ... . ......... . .. .. . . ...... . ... . .. ... . . .Ysar e nded D2cember 31,19. . . . SALES FOlt flESALE (Account 447)--Continred
* ~.
> If a fixed number of kilowatts of maximum demand 6. The number of kilowatt-hours wld should be the
/ is specified in the power contract as a basis of billings to quantities shown by the bills rendered to the purchasers.
(v the customer this number should be shown in column (f). 7. Explain any amounts entered in column (n) such as The number of kilowatts of manmum demand to be shown fuel or etber adjustments. in column (g) and (h) should be actual based on monthly readings and should be furnished whether or not used in the 8. If a contract covers several points of delivery and
- determination of demand charges. Show in column (i) type small amounts of electric energy are delivered at each point, of demand reading (instantaneous,15, 30, or 60 mmutes such sales r sy be grouped.
Integrated). Revenue (Omit Cents) Voltage Revenue Type of at per kwh Demand Which Ki owatt. Demand Other (Cents) Reading Delivered hours Charges Energy Charges Total ((50000) Line (i) (D (k) (1) (m) (n) (o) (p) No. I 2 3 4 5 G 7 8 9 10 11 3
- 12 13 14 q
15 16
.' 7 18 1D 20 21 22 23 24 25 26 27 .
28 29 30 31 32
- 33 e
- 34
) 35 ' 3G 37 40 41 TOTALS , 42
51
#'"""dPC'ICI" * " . .. .. . .... . .. . . .. .. ..Yesr end sd Decembir 31.19. .
PURCIIASED l'OWElt (Account 555) (except interchange power)
- 1. Iteport power purchased for resale during the year. Authorities. For each ICxclude from this schedule and report on page 5G particulars fication in eclumn (b),thus: purchase designate firm power, statistical FP; dump or classi-concernin;; interchange power transactions during the year. surplus power, DP; other,0, and place an ','x" in column (c)
- 2. I'rodde subheadings and classify purchases as to if purchase involvea import across a state hne.
(1) Asociated Utilities, (2) Nonassociated Utilities, (3) 3. Iteport separately firm, dump, and other power pur-Associated Nonutilities. (4) Other Nonutilities, (5) Muni- chased from the same company. Describe the nature of any cipalities, tG) It.10.A. Cooperatives, and (7) Other l'ublic purchases classified as Other Power, column (b). _$ 2 c Kw or Kva cf Demand (Specify Which) 3j $E @ g .Y < _a 3a
=t te Average Purchased From 3{ g3 Point of Receipt S Monthly Annual
*O Contract Maximum Maximum
~E* Demand Demand Demand U00"'. (a) (b) (c) (d) (e) (f) (g) (h) 1 2
3 4 5 6 7 8 9 10 11 l 15 16 17 IS 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 33 3C 37 40 9 41 l
- 42
?
Annual e n or t of.. ... . ... . .. . . ....... ... ,,, .... ... ...... . . ........
,, , , , ,,,,,, ,,,,, ,, ,, , ,yr ,, e nded Dec ern tier 31,19. ,
l'UltCIIANI.8) l' owl:lt (Account 555)--(hitinued (except interchange power) e
- 4. If receipt ei power is at a dulatatina indicate nwnership in column e!, 'hu<: >hould be furni.shol whet h<:r nr not used in the de termination
( - owned or h(ases. SS, respondent owned or l< awl, I!S; reller 5, If a fixed m:mber of kilowatis of maximum of demand charges, Show in column (i) type of demand reading (instantaneous D,:10, rir 00 minutes intrgrated). is i.pecifical in the power regntract as a basis of bilh,elemanet ng, this G. 'The number of kilowatt houre munber should he shown m column (fl. The number of quantitiesi shown by the power bills,p archared should be the 4 kilowatts of maximum demand to be rhown in colunms (g) and (h) should be actual based on monthly readings and 7 Explain any amount entered in column (n),uch as fuel or other ndjustments. Type of Voltace pg watt. Cost of Energy (Omit Cents) Cost Demana at Which g per Reading Delivered EnerCy gwn Other Charges Charges Charges (C W Total (i) (D (k) (t) (0.0000) t ir.o (m) (n) (o) (p) Ho.
~
1 o 2 3 4 5 G 7 ( 9 10 11
,r '.
12
]
,/
13 14 13 c 16 17 18 19 e 20 21 22 23 24 25
- t3 27 28 29 30 31 32 33 31 35 36 37 i 3S
, /
v 39 40
, 41 TOTALS l
.g
> c, e
INTERCHANGE l'OWER (Included in Account 535) i C L Re L delivere port curin;:belex the ki:owatt-hours the year and the net charge received and shall or er'dit be furnished Interchance Power. in Ifhrtsnttien B. Detausent fo-ofany Settlement fer copy transaetbn coordination, or other of the annual such arrangement, summary of trantactions submit a and bi!!- E und r interchan:e power agreements. n!<o includrw credit or debit n nounts other than fer ings among the part;es to the .,ereement. If the 3
- 2. Provide nbhen<!i.ms and einssify interchanens ine:ement generation expmws, show such other amcunt of settlement reported in this scheduie fer nr'v as to (1) Avceia.~i Utintie.r, (2) Nnnaweiat ed Utili- component atr< unir separately, in whl: tion to debit transaction does not repre+,cnt n't of the charges and -
tie <, (3) Aesociate<! Nonatilitics, (4) Other Non- or < recit for increment generation expense, and give credits covered by the a::ree:nent, furnish in a footnote uti'itia, (5) .'.lunicip.dities. (G) ILE.A. Cooperatio:s, 2 bntf explanation of the factora and principles under a description of the other debits and credits anti state - nnet (7) Other PALI:e A :thoritit <. Per each int < r- which such ribr corrp. ment nmounts were deter- the nmounts and accounts in w hich such other cha p nere:S a yt..te line pince an .s" in column (b). mine.l. U such wt tic:nent reprewnts t he net cf debits arcounts are inchaded fer the 'vear.
- 1. P..rtita!ars of n itlenu ot: f. r interchane power and ersdits un 'er an intercoanettion, power poclir-A. Sunan .ry of Interchane Accordin,t to Compades and Points of Interchange -
2 ? c& y ,, y(l Kilowatt hours .
- f. m E .f 5 2 .
Nme of Crnpany E Point of Interchange .h Amourt of f L'ne < M Received DeHvered Net Difference eMimmt . No. (3) (b) (C) (d) (e) (f) (g) (h) . 1 l i 2
.3 4 :
5 s [ G i Y =.
- c. , .
oI . 10 II 13 l TOTALS l { B. Details of Settlement for Inter < hange Power U ?{ Nar e of Con cany bplanation Armeunt No. (i) (D (k) . g I *' I. 14 E. 4 I ~r IG E e s =4
?
g IS'- I 8 u Mt .~ 20 .* e1!' TOTAL O . m O .m, 9 -
57 Annual report of..... . . .. .... . .$.N. 9.U..I.b. .b.N..NMN.M.NN .. ..... ....... Year ended December 31.19M EIECTitIC 'FNEftGY ACCOUNT Iteport below the information called for :ence"ing the disponition of electric eners:y generated, purchased, and interchangad during the year, e Kilowatt-hours Line item , p (b) ( No. (a) Q _ _ 1 SOURCES OF ENERGY 2 Generation (exduding station use):
^
3 Steam. . . . . .. 259,618,000 4 Nudear. . . .. . . . .. . 5 Ilydro. . . . Other.
'53,539,000 6, . . . .
7 Total generation. .
. . . . 313,157,000 8 Purchases .
201,3hh,335 9 In (gross).. . 52,67h,000 10 Interchanges. , . Out (gross). - 'A,8E6#50 11 g Net (kwh).
. (2,212,850) 12 Received. .
13 Transmission for/by others (wheeling). . < Delivered. ..... 14 , Net (kwh). . .. 15 TOTAL. . . 512,288,h88:__ 16 DISPOSITION OF ENERGY 17 Sales to ultimate consumers (including interdepart.nental sales). . . 307,h60,361 18 Sales for resale. 176,277,565 19 Energy furniahed without charge. 20 Energy used by the company (excluding station use):
"1 Electric department only. . . . . h,628,977 22 Energy losses:
23 Transmission and conversion losses.
,/ N D Distribution loeses. . . \ 25 Unaccounted for losses. ..
OG Total energy losses. . . . . 23,921,582 27 l<nergy losses as percent of total on line 15. .. . h .67. . % 28 TOTAL $12,288,kO3 MONTl!!N l'EAKS AND OUTPUT
- 1. Iteport hereunder the information callt*I f.>r sertaining to simul. 3. State tyg e.f anontidy I.cak reading (Instantaneous 15, 30. s.r C0 taneous leaks e.tablihed monthly (in kalowatts) and snonthly output (in sninutes integrateA)
LJewat& hours) far the combinal sources of electric energy of regpondent. 4. Monthly output sho.ild be the siim of respor. dent's net renerstian
- 2. Monthly <ak col. (b) should be renpondect's anaximurn kw load as an.I piirchues Jus or ndnus net interchange and s.lus or suinus en t trar.s.
neemred by the sum of ita coincidentad net generation and purchanca plus andasmn or whcchng. Total for the year abould agree with I,ne D above. or sninun met interchange. niinus 'emporary delneries (no,t Enterchangd .5. If the ropandent has two or mora pous r systeine n<. physically of emergency power to another system. Monthly g.cak meludenn meiel conneetal. LI.e mformation calir I for below shou!.! Le furnmhed for each emerrenes delweries should be shown in a footnote with a t,rief explannten' ayatem. as to the nature of the einergency. _ System Monthly Peak Monthly Output Day of (kwh) Line Month Kilowatts Day of Week Month flour Type of Reading (See Instr. 4) No. (a) (b) (c) (d) (c) (f) (r) 5 January. . 62,000 Thursday 31 9AM 60 Min. 6h 73 030 30 February. 62,000 Friday 1' 10 A M " 54,362,h37 31 March . 60,000 Monday 3 11 A M " 38,238,936
^
32 A pril .
- 53,000 Monday 1h 11 A M " 26,105,hT8 33 M ay. 52,000 Thursday 8 12 Hoon " 24,768,090 31 June. . 55,000 Wednesday 05 11 A M " 24,376,878
" h5,200,870 35 July 61,000 Monday il 2PM
" h8,391,712 p as August. 64,000 Tuesday 5 3PM
, 4 37 September. 62,000 Tuesday 2 2PM " h7,758,h05
\~'} 3s October. 53,000 Wednesday 15 9AM " h3,937,513 33 November. 57,000 Tuesday 18 11 A M i l 30,572,660 40 December . 60,000 Mon' day _ 15__ 10 A M l
" ! 64,202,h76 _
.g }
TOTALf 512,288,k85
To e nnual rep art of.. . ..
.T.%n,$pn,,F,hydy,$p,$,,110hhin[* .Plnnh.. , ,,,Ynr ended Dicen ber 31,19 89 GENERATING STATION STATISTICS (1,arge Stations)
(Except Nuclear, See Instruction 10)
- t. Im v W,. n fmr the g.ars m. of this schehle are stenne and hydro 4. If g+ak demand for r0 niinutes Le riot available, give that mLich le et atW = * . '.=1 hm
- i.r more of ju tsitol capacity and other st4Was of asadable, speed > sng period.
!/W lb * ? (*10.(XM Kw 5. !! a group of ernployees attetid, an.oro thart one ren. 6 statin gt sti. n,
- n,0. ore of an tmlled capadty (nanec t, late ratine).
nn.1 ;' , w. re.g.c. tively. af annu el electrw op rmteng revenues of re- report eri On. Il ttio approzianate aversare nuinber rif estipIvi ca usern al.le g+nd t . ire $2:n.oMJ.WJ cr pare.) to eacle statson. J. l' we t h r' t is lease i. operated under a 1.ca nsa frona the Federal re. If ras is U*d and purrLWd an a therrn liasis, tha 11 f.u. 4 e stent t.f Po e 4'- :. tma ' s. or oJ r :.tc.! 4s a pin t f atuity. sr. dante an h f ac ts by tha m n'..out I t,e gn en ar.d the sps:sunty of f sel t onrawd s onver t.si t.. tb
- a t. ra. ei l f ootu st. , At ca, (L.
- 3. e,.*rJy if : .tal obt cm;.adty i reporte t in tia inntend of Lilowatte 7. Quantitin v.f fuel con unnel and the averace em.t per unit ni fuel
- a. n! At isr c:. I r.c 5. consunied should be consutent witti cf.arges to espenw account, M1 an.!
tine item Plant Plant Plant
"' " plearyElood___ _ClearM1ooi._.
J.Wate?st.
. ombined Cycle 1 h..uo l ( f plant (steam, hydro, int. comb., gars turb.irie) Stean Uteam Steel & on3 Turt ine 2 Tyre of plant construction (conventional, outdoor boiler, full outdoor, etc.). Conventional Conventional Conventional 3 Yw originally constructed. 1902 1966 1971 4 Year lut unit was installed. 1958 1966 1976 5 Tot tl installed capacity (maximum generator name phie ratings in kw). h9,000 28,300 110,000 6 Ne peak demand on plant-kilowatts (60 min.). - 25,000 108,000 7 l'! ant hours cannected to load. - 3,014 2,823 S Net continuous plant capability, kilowatts:
9 f a, when not limited by condenser water. 36,500 25,000 110,000 10 (b) when lin.M by condenser water 31,000 25,000 103,000 11 Au rage nuniber of employeen. 1 2b 2b 12 Ne ;rneration, exclusive of station use. - 60,535,000 252,622,000 g 13 Cue of plara (omit cents):
. le.nd and land rights. 2h,109 51,067 170,333 15 struoures and in provements. 2,210,561 1,173,382 2,404,097 1G Heiervoirs, dams, and wat< rways.
17 Equipnmnt cuts. 6,999,795 3,051,5h1 20,214,796 18 I'oads, ra:In. ads, nr.d bridges. 19 'l otal cet. 9,23Eh65 X275_,990 _22J 8D F6 . 20 Cost per kw of installed capacity. 188 151 _207 21 l'roduction expenws: 22 operati.a supervision and enginn ring. 89,379.63 153,058.19 23 station bbor. 15,6h3.42 204,583.97 268,63h.27 24 rw l . 2,9ho.358.06 11,066,801.27 25 supplies and expenws, including water. 35,713.34 61,386.12 114,386.31 26 Mainu nance . 8,7h4.53 217,073.51 1,120,221.'(9 27 Renti. 28 Steam from other sources.
"9 S:eam transferred-- Credit.
30 Total production expenses. 60,101.11- _3,512,781.2JL _12_,723,1.01.83_ 31 Expenses par net Kwh (5 places). -
.05803 . 05036 32 ru+1: Kin:1 _No. 6 011 No. 6 Oil No. 6 L Ho. 2 Oi l 33 Ur.itt (Coal-tons of 2,000 lb.) (Oil-barreh of 42 gak) (Gn-M cu. f t.) (Nuclear, indicate). Barrel Barrel Barrel 34 Quantity (units) of fuel consumed. 127,479.1h h26.h23.h7 35 Averm heat content of fuel (ll.t.u. per !b. of coal, g
pcr gal. of oil, or per cu. f t. of ga3). 148,513 1h7,383 l 36 l Average cost of fuel per unit, del. f.o.b. plant. 25 0197h52 26.28h1055 37 i Averac-(oat of fuel per unit consumed. 23.965h055 25 9526083 38 Averar cost of fuel consumed per million II.t.u.. 3.697833 h.192610 39 Avere cmt af fuel consumed ler kwh not ger.. .0h8573 .043808 to Attrau Itt.u. per kwh net generation. 13,135 10,h49 41 42
. m _ . .
59 Annual report of... . ....... ...T!NUI93..UUDiCiPal...LiChtiDS..P.lant. .... .. . ... .... .Yant ended Dscomber 31,19.00 GENEl(ATING STATION STATISTICS (I.crge Stations)-Continun! (Exetpi Nuclear See Instruction 10) 547 as shown on hoe 2., operation m-ith a conv< w . I steam unit. the cas turbine should be included
- b
- 8. 'It.e items under cost o' plant and prmluetion expenses representa 'I'd,'I[g'thEreIonNEnt operates a nuclear power generating station s accounts er con tanntmns of accounts prescribed L.y the I mforan Systeen subnut: (a) a brief ext fanatory statement concerning accountmg for the
. i of Accounts, l' reduction capennes, Lawever, do not melude l'urchased l'ower, Eyst cost of power generated incluciang any attribution < 'exceus costs to rewarch rh.ssified as 0.jser
,em Control and least l'ower tsupply Ihopatchmg. and Other Lapenas 1,xpenses. an.1 ste:velopment expenses; (b) a brief eug.l nstion of the fuel accountsnr specify;ag the accounting ruethods and types of con.t umts used math
- 9. If any g,lant is e<luipped with combinations of steam respect to the various components of the fuel cost, and (c) nuch adctitu nni comt mte n engine or gas turbine equipment, each shoutc11. hydro,nainternal reporte,1 $ informatha as anny 1.e informative concerning the type of plarit. Lind of eparate plant. jioneser, if a Ess turt.ing unit fuasctat.s in a cominced fac! useil. and other ph) tcal air.d operntmg chararte:ristiu of lips plant.
J e 4 Plant Plant Plant Plant Plant Plant Line (e) (f) (g) (h) (a) (1) No. 1 2 1 3 4 5 i
. G 7
8 9 10 11 12 13 14 ( 15
. x>6 s
1G 17 l 18 ,- :9 20 21 22 23 24 i 25 l 2G 27 28 29 l l 30 31 32 33 34 35 3G 37 38 39 . , \~ 40 41 42
60 ..Ysar sndsd Dictmtnr31,19.80 Arinual riport of.. N.1,h.M ..I.Nk9dD.N.MdlN715.2111 tit. . . STEAM GENEltATING STATIONS lessor, date and term of lease, and annual rent. For any ,
- 1. Ittport the information called for concerning gener-generating station, other than a leased station or portion ating stations and equiprnent at end of year,
- 2. lixclude from this schedule, plant, the book cost of thereof for which tFe respondent is not the sole owner but which is included in Account 1;1, Nonutility Property. which the respon lent operates or shares in the operation of, furnish a succinct statement explain:ng the arrangement and
- 3. Designate any generating station or portion thereof for which the respondent is not the sole owner. If such giving particulars as to such matters as percent ownership property is leau d from ano'.her company, gise name of by resporident, nante of co-ovene., basis of sharing output, B mlers Rated Max.
Number Kind of Fuel Rated Rated Continuous Name of Station Location of Station M lbs. Steam and Year and Method Pressure Steam Installed of Firing inIbs. Temperature
- per Hour Line (f) (g)
No. (b) (c) (d) (e) (a) 1 500 W. Water St, 2 W. Water St. Taunton, Ma 1 1933 011 Autc h50 725 90 3 4 1 1942 Oil Auto 900 825 170 5 6 1 1952 Oil Auto 900 825 150 7 8 1 1958 Oil Auto 855 905 160 9 10 11 12 e 13 is 17 18 19 20 21 131L Somercet Av3. 22 Cleary-Flood Taunton, Ma 1 1966 Oil Auto 850 900 300 23 2-1 25 26 27 131h Somercet Ave. 23 Cleary-Flood Taunton, Ma 1 1975 011 Auto 1800 1000/1000 557 29 30 31 32 31 31 35 3G _ _ _ _ _ _ _ _ _ _ _ _ . _ _ __ 37 Note reference:
- Indicate reheat boilers thusly, 1050/1000.
61 Annutt report er...... Y**' *ad*d 0*cimber an.1980
. ...... .... ...Tatnton..Waisipal. Lipting Pla. .t-STEA51 GENERATING STATIONS-Continued expenses or revenues, and how expenses and/or revenues are 5. Designate any plant or equipment owned, not oper-
- accounted for and accounts affected. Specify if lessor, ated, and not leased to another company. If such plant or co-owner, or other party is an associated company. equipment was not operated within the past year explain
] 4. Designate any generating station or portion thereof whether it has been retired in the books of account or what disposition of the plant or equipmust and i's book cost are
> leased to another company and give name of lessee, date and term of lease and annual rent and how determined. Specify contemplated. whether lessee is an associated company. Turbine-Generators
- Name Plate Rating in Kilowatts Station II'*
- Hydrogen Capacity Pressure At At Pressuret Maximum at Power Voltage Year Minimum Maximum Name Plate Installed Typet Throttle R.P.M . Hydrogen Hydrogen Factor K.v.tt Ratingit
- E' Pressure Min. Max. g Pressure (m) (n) (o) (p) (Q) (r) No.
(h) (i) (i) (k) (1) 1 1933 S. C. h50 3600 7,500 Air Cooled 80 13800 7,500 2 T.N.C. l 3 1942 :.00# 900 3600 5,000t " - " 80 13800 5,000 4
,S. C. 5 1950 J. 5"Ha 200 3600 10,000 80 13800 10,000 6 S. C. 7 1952 1 5"HG 900 3600 10,000 80 13800 10,000 8 S. C. PSIG PSIG 9 1958 1 5"HG 850 3600 15,000 16,500 05 30 65 13800 16,500 10 11 Note A: 7500 KW No.3ynitnotoperated t since 197h. Unit is considered 12 inefficient and unre]ieble. 13
- 14 Note B: Otmer units linted above at W. Water St. generating station have not 15
- , v operated since October 31, 1978 . None of the units at W. er havo 16 be en retired fyon the books. Tiese units til remain inac ve and futu$r retirement of f.hese units or reactivity cannot be determin at this tiniM 19
- 3. C. 20
" HG PSIG PSIG 21 1966[GS 850 3600 22,000 28.300 05 30 85 13800 28,300 22 23 24 25 3 T. C. 26 i
L.5"HG PSIG PSIG 27 1975 ABS 1800 3600 90,000 05 30 85 13800 90,000 28 29 33 31 32 33 34
- 35 36 Torats 167,300 167,300 37 i
Note references:
\ ' Report cross-compound turbine-generator units on two lines - II.P. section and L.P. section.
j tIndicate tandem-compound (T.C.): cross-compound (C.C.); all single casing (S.C.) topping unit (T), and noncondensing (N.C.). Show back pressures. (Designate air cooled generators. ttIf other than 3 phase,60 cycle, indicate other characteristic.
!!Should agree with column (m).
C2 Annuit rSr art af.. . . . Trt11 rit,on. .Munic ipal. .Ligghti ng. . plant o . " Yen ended Dectrntsu 31.19-80 IlYDROELECTRIC GENERATING STATIONS .
- 1. Iteport the information called for concerning gen- property is leased from another company, give name of crating sta* ions and equipment at end of year. Show le.uor, date and term of lease, and annual rent. For any associated prime movers and gener<. tors on the same line. generating station, other than a leased station, or portion
- 2. I:xclude from this schedule, plant, the book cost of thereof, for which the respondent is not the sole owner which is included in Account 121, honutility I'roperty. but which the respondent operates or shares in the oper-
- 3. Designate any generating station or portion thereof ation of, furnish a succinct statement explaining the ar-for which the respondent is not the sole owner. If such rangement and giving particulars as to such matters as Water Wheels Gross Static Narne of Station Locat.on Name of Stream Attended or Type of Year Head with Line Unattended U nit
- Installed Pond Full No. (c) (d) (e) (f) (g)
(a) (b) 1 2 None 3 4 5 6 7 8 9 10 11 12 13 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 32 33 31 _ 35 3G 37 38 ____. 39
'llorizontal or vertical. Also indicate type of runner - Francis (P), fixed propeller (FP), automatically adjustable propeller (AP), Impulse (I).
l GJ e it s e por t a f. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Yur e nd rd Decsm her a 1. t 9. . . e llVDitOEl.ECTitIC OENEltATING .*irATIONS-Continued p< tre-nt of ownership by respom!rnt, name t.f co-owntr. Siwcify wh -flmr lerne is an awirtategl cornpany. I, asis of tharing nutpnt, exgw tem, or revenum, arvi how fa, th sigxste any pl: int e.r swguipine-nt uwenst. not oper-exgn ne ant!,or revenues ute accounted for ans, accounts ated and riot leased to another comp:tny. If a.acia plint affected. Specify if im;or, co4mner, or othscr party is an or tvluipnent was not operated witMn the fxtst year ex}ilain ascociated ronipany. whether it hxs been retired in the books o. account or what i 4. Designate any generati.a station or porti.m thereof disposition of the plant er equipment and its book cost are leased to another company and give name of hsser, date contemplated. and terrn of lease and annual rent and how determined. Water Whee;s - Continued Generators Total Installed PAamimum hp. ( Name Plate Numt>er Concrating Capacity of Tre. Rating of of Capacityin Ki!. Unit at Year quency Unit hi Units in owstts (name Design Head R.P.M. Design Head Instatied Voltage Phano or d.c. Kilowatts Station plate ratings) L6ne (h) (i) (i) (k) (!) (m) (n) (o) (p) (q) No. 1 2 3 4 j 5 6
- 7 8
3 10 11 12
\. 13 I4 i d 15 16 17 13 19 20 9 21 e
22 23 24 23 2G 27 28 29 30 P' 32 33 31 i
- 35 36 37 3S TOY #LS ?.'s
( l l l t
- r I
Ci Anautrtr.*tv... . . ..... . .....T.nunto9.J#n19 1 9A.Mr,htAns.Mmt.. .. . ........vzr cnd1d o c:mber ai. i9.80 . COMilUSTION F.NGINF. AND OTilEtt GENEllATING STATIONS - (except nuclear stations)
- 1. Ih p irt the infr,.mation called for concernin : gcn- prop < rty i< leasel frori another comp.tny, rice narne of a r.cin : wui.in4 arnt equip:nent at end of year. Miow ar,- lewir, date and term < f team , and annual rent. l'or any ciated pr ne mo'.crs aml generators on ihe same lir.e. generating station, other than a leavd station. or portion
- 2. Exclude freni this schedule. plant. the book cost of thereof. for which the respondent is nnt the role owner but which is included in .\ccount 121. Nonutihty 1*roperty. which the respondent operate. or shares in the operation 3.1)esignate any generating station or portion thereof of, furnish a succinct statement explaining the arrangement i for which the respondent is not the sole owner. If such and giving particulars as to such rnatters as percent owner-Prime Movers Dieset or Detted Nanie of Station Location of Station Other Type year 2 or 4 or Direct line Engine Name cf Maker instafled Cycle Connected No. (a) (b) (c) (d) (') (I) (8) 1 Cleary-Flood 131b Somerset Ave. Gas Turbine 'leneral Electri : 1976 - Direct 2 Taunt'on, !!a 3 _
4 5 6 7 8 9 10 11 12 l'l IG li 18 19
'O 21 22 23 21 25 2G 27 28 29 30
- 11 32 33 31 3 ~.
3G 37 33 39 9 m--e "'
G3 , annu.i r,po,i on......................T.aMn.t9n..!.Nnh.in.%..M r.htA n7..Mnat....................vear .ndid ox min, si, i,...N
- COhlllUSTION ENGINE AND OTIIElt GENEllATING STATIONS-Continued (except nuc! car stations) e 7 ship by respondent, name of co-owner, barls of rharing Specify whether lessee is an associatal crimpany.
j output, expenses, or revenues, and how expenses anet/or 5.1)esignate any plar ; or equipment ownr>d, not o r-revenues are accounted for and accounts atTeeted. Specify if ated and not leased 'o another company. If such p nt lessor, co owner, or other party is an associated company. or equipment was not opcrated within the oast year, exptsin
- 4. Designate any generating station or portion thereof whether it has been retired in the books of accourt or what leased to another company and give name of lessee, date dirpositior: of the plant or equipment and its book cost are and term of lease and annual rent and how determined. contemplated.
Prime Movers - Continued Generators Total Rated hp. Total ins.alled Name Plate Number Generating Capacity Rated hp. of Statloa Year Frequeacy Ratingof Unit of Units in KUowatts of Unit Prime Movers instatted Voltage Phase or d.c. In Kalowatts in Station (name plate ratings) Line (h) (i) (j) (k) (i) (m) (n) (o) (p) . Ho. 36,810 36,810 1976 13.8 W 3 60 H y 26.100 1 26,100 2 3 4 5 6 7 8 9 10 11 12 13 14 I IG 17 18 19 20 21 22 . 23 24 25 26 27 28 29 30 31 32 33 34 35
\ 36 37 I
g TOTALS
~
sk16 39 s + s.
~ E Gr.NERATING STATION STATISTICS (Small St:tions) )R
- 1. Sma'l generating stations, foi the purpo+e of this or operated as a joint faci!!ty, and give a condse schedule, tre steam and hydro stations of less than 5. If paak demand for 60 minutes not avail- I-2,500 KW' and other stations of statement of the facts in a footnote ~. able, give that which is av:rilable, speelfying perimt insta 3. List plants appropristcl under subheadings for 4 pnc,. ,.j1 ed capacity (name plateKW mgs). (*10,000 rat,1custeam, thanhydro, 500nucler.r KW*interna combustion engine and G. If any plant is equirped with combirati' < ef 1
.,500 KW, n spectively,if annual electne opcrat- gas turbine stations. For nuclear, sco instruction 10 steam, hytiro, internal combustion engine or ::a* tur. o mg revenu.s of respondent are $25,000,000 or more.) page 59. biv equi ment, each should be reported as a sep . rate :
- 2. Desij:nate any plant leased from others, cycrated ph:nt. I owever, if the exhaust heat from the gas t
- 4. Specify,if total plant capacity is reported in kva turbine is utilized in a steam turbine regenerative fred t under a Nmse from the Federal Power Commissien, instead of kilowatts. water cycle, report as one plant.
- I'rouuction Espenses :*
'nstatted Net Pla nt Enciuswo of Depreciation l Fuel Cost Ca pacity Peak Generation s Per KWH NN of Mant Name Cost and Taxes Net :
Demand Excludmg Per KW Year Plate KW Station (Omit Cente) Kind Generation *: U"3 Cost of P' ant inst. of (Cents) Con st. Rat;ng-KW (60 tiin.) Use (Omit Cer:tsj N D. (a) Capacity Labor k Fuel Other Fuel (0.0000) * (b) (c) (d) (e) (f) (g) (h) (i) (f) (A) i (*) 1 : 2 . 3 :. 5 5 7 . 3 .i 10 i 11 i I? l 23 :. 14 i 15 16 i 17 5 18 : 10 t .V a. k a (lk 23s3' o 24 R 2 *> $ 2G A 27
~
28 . e TOTALS . e e, e , 9 - l
67 ) Annust report of...................kEMNR.MiCdpa1. Lighting.. Plant.....................Yate caded Decstaber 31. I9. 80 o TRANSMISSION 1,INE STATISTICS e Iteport information concerning transmission lines as indicated below. Length (Pole Miles) Designation Type of Nu ber ze Supporting On Structures of ' On Structures of To Operating Line Designated Another Line Circuits and Mater $al from Structure Voltage (e) (f) (g) (h)
- UNo"'. (a) (b) (c) (d)
I %n. Stn. #2 Switch Sta. #2 115 KV Sp. Wd.St. 0.91 None 1 795 ACSR 2 (Cleary-Flood ) 3
" " 1.27 None 1 4 Gen. Sta. #2 Substa. #16 Wood Polesi 795 AAAC 5
" " 1 6 Gen. Sta. #2 Substa. #16 Wood Poles ,
1.27 None 795 AAAC 7 lCleary-Flood) 8 9 - 10 11 12 13 14 15 16 17 18 19 22 23 24 25 20 27 28 29 30 31 . 32 33 34 35 3G 37 38 39 40 41 42 43 44 46 : v g TOTALS 3.i5~ 0 9 3 i *Where other than 60 cycle. 3 phase. so indicate. I
SUBSTATIONS
- 1. Report below the infortnatian ca:1ed for concerning autetations of the respondent as of the end of the year. 4. Inlease in eobimn tM the f..n-tional chsracter of each sub. r amn of ecle ownerudp 1.y :a re.por.devit. Fee any on!-tation er
?2 statson, demanat.na whether tranamsakwn erwatri ution and whether b 2
- 2. N.t.~tatwns utdch eers e but one i*adustr;al r str.et radway attend.d or unattended. eernement erratolrest. s.eder M rsse nwe of leer. . tate 4 Lt te rA: E eu. ton.cr .:not.14 not be ti.tal hereunder. S. bhow in columns (i), f L J and (L) opeed! equipnient suela as of tesae mend ann ta!.s of sob einera?an .orz.sLse ?For a m.eans n' **e#at
*>eri t.ca er coopei.ea e
- 3. Sabotat4ons 3:th capacities of lem than 5000 kva, etecpt those eithee i t att by em !
rotary contera ars, rectd.ers. cor.densers etc. and ausd.ary eqmpenent
- s ersing ette.oeners 3ith cricrgy for renate nsay be groupel accoriang for merewna capscity. er e tter party, esp!ma ba of hareer eur m- i.f ..t!.e+ a~eunt+c j to fumtientti ebaracter, but the nwnber of such pubatations must betweeve t!.e part.re. and state answeis D n.1 am*"nte C. Ih<nate sa!*t.stens or snafor iterns c' egmpeaen respowfent's twLs of account. P:=.e d> an e scle tw mi eth?ems m s.. ;
te ho.n. other jantly om neu math e thers, s.r neersted ether.t 1cael frees
- than by ! we. e esw .cr. or ettwr party as an aan cuatal euw. pair. .-
Character Volta ge Name and Location of Substation of p,e gy ,, y ,, , Conversion Apparatus. ed Special Equipment Substation *>ubstation cf Trans. of Spare g second- In kva formers Num ber Total Primary ary Tra ns. Tertiary in Service formers Type of Equipment *
- 0. (a) (b) (c) (in Service) cf Units Capacity (d) (e) (f) (g) (h) (p (i) (k)
- Cleary,Flcod Station Dist. isttended 115 13.8 25,000 1 0 :
3 Cleary-Flood Station Transm. Attended 13.8 115 r 4 90,000 1 0 i M 5 West Water St. Dist. Unattended 115 13.8 M 6 50,000 2 0 5 e 7 West Water St. o Dist. Unattended 13.8 h.16 5.000 3 0 $ 8 16 Suh tations (Each Dist. Unattended 13.8 4.16 h3,750 v 10 under 5000 KVA) 32 0 N 11 S. O 12 n H 13 . 14 l D N 25 u-16 i e 17 n. 18 so 19 g 3 20 cv 21 : 22 : 23 .' 24
- 25 .'
2G ?" a 27 28
- 3 29 g 30 "
31 ~ o 32 ToTatS 213,750 39 0 do O e .9, 9 -
69 A nnus t r: port of. . . . . . . . . . Taunto . . . . . . . .Muni
. . . . .... .. . . . . . ... ..-.n. . . . . .ci.p a. l. L. i. .gh. ti n. .g P. .lant . . . . . . .
e
- OVERilEAD DISTRIBUTION 1.INES OPERATED e
Length (Pole Miles) Line Steet Towers Total No. Wood Poles 1 Miles-Ileginning of Year. 362 93 362 93 2 Added Dunng War. . . . 2.kT 2.kT Retired During Year. .85 +65 3 ~ 4 Miles - End of Year. 364~~55 364 55 5 6 7 for L*ight and Power. 8 Distribution System Char.tctemtics - A.CSecondary or D.C., r hase, 9 60 HG A. C. Primary 4160V 3 c33 eles Wire and operating voltag/380/600V 240 to 3 9 4 Wire 120/208V in 1 9 120/2h0V 12 13 60 HE A. C. Primary 13,800V secondary 3 d h Wire 120/208V 24 3 d 4 Wire 277/480V 15 ELECTRIC DISTRIllUTION SERVICES, METERS AND LINE TRANSFORMERS 4 Line Transformers Number of Total Watt-hour ' Capaelty Line Electric
/' 7 Item Services Meters Number (kva)
No.
)
99,750 7 E Number at beginning of year. Additions during year: 15,631 23,536 3,570 17
*****+* Th0 93 2,747 0 13 Purchased . .
19 Installed . . kl4 ++e++ee ** . ++ ........ Associated with utility plant acquired. 20 . kl D TD pj 2,Th7 W 21 Total additions. . . 22 Reductions during year: 287 62 3 225 0 ! 23 Retirements. . . . 24 Associated with utility plant sold. 25 Total reductions. . 28T- 62 - 3 225 0 I .
.L% 75 F 2 2 G214-~- 3;660 -'1027272 7
( 26 Number at End of Year. . 200 29'5 6,576 T 27 In stock. . .. . .. .. , ,, 28 Locked meters on customers' premises. . 29 Inactive transformers on system. . . . . 23,956 51 2,713.0 30 In customers
- use. . . . .
90,983.2 3,314 In company's ure. 58 31 . .. . 21 G21P ~~.G660 102,z7z.7 32 Numbar at End d Year. . I - l im
/ \
V
{ CONDUIT. UNDERGROUND CABLE AND SUl! MARINE CABLE-(Distri'ou:fon Syttem) k?O Report below the infonnation called for concerning conduit, underground cable, and subm .rine cable at cnd of ye:.r. 4l Underground Cabte Submarine Cable j Miles of Conduit Bank 3 Designation of Underground Distribution *ystem (All Sizes and Types) Miles
- Operating Voltage re et* Operating Voltage o Uno No. (a) (b) (c) (d) (e) (f) j 1 Feeder 10h.1 10h.2 104.3 104.4 1.70 3.17 3 1/C h160V i 2 20h.1 20h.2 20h.3 2 51 4.64 1/C 3 30h.1 33h.2 304.3 0.08 .14 3 1/C !
4 404.1 404.2 404.3 0.09 .n 3 1/C ' " 5 504.1 504.2 504.3 0.10 .25 3 1/C ! c 604.1 60h.2 0.04 .06 3 1/C " ig. 7 70h.1 704.2 0.12 .18 3 1/c " i s= s 80h.1 804.2 .07 3 1/C E 0.05 i, 8 9%.1 90h.2 0.10 .16 3 1/C " is 10 1004.1 1004.2 0.79 .88 3 1/C i-It "
.i.104.1 nok.2 0.04 53 3 1/C ig 12 1204.1 1204.2 120h.3 0.15 .23 1 1/C "
is 130h.1 130h.2 130h.3 0.22 37 31/C 17 M " 170h.1 0.07 .07 3 1/C 13800V " jf., 25 114.22 0.48 1 72 3 1/C i 16 " nh.24 0.38 .42 3 1/C " 5 17 n 214.N1 0.03 .03 3 1/C " h 13 " 214.N2 0.H .08 3 1/C i'^ 19 214.N4 0.88 1.36 3 1/C .N 20 " " 214.31 1.04 1.10 3 1/C '8 21 n 41L.101 - 1.1'l 3 1/C " ki 22 314.1n 514.111 0.28 .R 3 1/C 23 114.S1 0 51 .51 3 1/C -' Tio 3 1/C 136"0V i n ' 21 514.71 0 53 .82 3 1/C " 25 " 814.121 0.25 .25 3 1/C " i 26 " G14.n 0.03 .03 3 1/C ;f 27 n 1614.21 - 1 72 3 1/C " i 28 " G14.31 1.21 1.62 3 1/C '" l 29 G14.51 0.28 3 76 3 1/C 3 30 " G14.S1 0 51 .48 3 1/C " 860 3 1/C 13800V i 31 1614.G2 -
.h8 3 1/C 860 3 1/C 138007 ?
32 G14.n 1.23 1 79 3 1/C i 83 Continued Next Page ,, -}
- Indicate number of conductors per cable. o e...
~
e , e
^
[ )
\*-
I ( j w J CONDUIT, UNDERGROUND CABLE AND JUBMARINE CABLE-(Distribution System) ?o Report below the information called for concerning conduit, underground enbie, and submarine cable at end of year, j Underground Cabte Submarine Cable Miles of Condult Dank Operating Vo'tage Designation of Underground Olstribution System (A;l Sizes and Types) M!!es* O Operating Vo:tage Feet
- o.
Ins (d) (e) (f) N 2. (a) (b) (c) Feeder 114.11 0.18 .18 3 1/C 138007 i i " " 1614.01 0 55 57 3 0/C ! 2 " " ! 3 2G14.S1 0.11 .11 3 2/C 4 2014.31 0.03 1 56 3 1/C 0.03 " i s 2G1h.32 .03 3 1/C " S14.41 S14.h2 0 50 1.00 3 1/C ! 6 " 30 7 13.8 KV Services 0.87 96 3 1/C Network Primary 1.36 h.70 3 1/C 120/208V $ s 9 Nctvork seconde.ry 5.h0 T.26 8 1/C 120/208v g 2TT/h80V ? 10 11 12 7 13 y 14 j'., Is N 17 IS $ 19 I 9 20 ' h 21 3 22 ? 23 ; 24 i. 23 : q 2G : 27 g 28 { 29 y 30 31 g 32 g 33 34 , Toms n.M 6 41 2MO h co
*Indiente number of conductors per cab!;.
l
~'
[ . e- t
71 A nnuti report a f. . . . . . . . . . . . . . . . . . . . . . . . .U.NMN. . . Eh.P.@..h.idlMh8..P.lEh. ...............ve., ended oecemder si,19.80 STREET 1.AMI'S CONNECTED TO SYSTI31 g
- Type es c ty Tot.1 inc.ndescent Mercury v.por riuorescent SoditBI1
'**" other other wonicip. ) oth.r uunic:p.: uunicip.: uunicip.: oiner (d) (e) (f) (g) (n) (i) (i) rio. (.) (b) (c)
' I Taunton 5,338 2,752 3 1,992 3h5 183 63 navnham 629 376 37 91 102 1 22 4 5 Berkley 83 28 30 0 25 0 0 6 7 No. Dighton 150 0 3 128 16 0 3 8 9 10 _ 11 12 13 14 15 16 17 18 19 20 p 21 l 22 23 21 25 26 27 28 29 30 31 32 33 31 f 35 l 36 37 38 39 40 41 42 43 44 45 46 47 > (f- s
\ 43 49 50 51 TOTALS ~6,200 --3,156 - 73 2,211 488- - - 184 88 5'3
h 31,1960 A nnus t report o f. . . . . . . Taun . . . . . . . . . . .. . . . . . . . . ton. .M. .m. .i.c. .i. .n.a. l. .. .L. .i. 6. .t. .i. .n. 8. .P. .l. .a. n.i. : . . t RATE SCIIEDULE INFOR.\ lATION
- 1. Attach copies of all Filed Rates for General Consumers.
- 2. Show below the changes in rate schedufes during year and the estimated increase or decrease in annual rev on the previous year's operations.
Estimated Effect on Rate Annual Revenues Date M.D.P.tJ. Number Schedule Effective increases Decreases r No Changes N a i ). I Y r I i i
sa A p reuil # 2 ptrt e f. . .. . . . . . . . . . . . . . . . . . . . . . .T.
.a. .u. n.t. .o. .n. .-
. .M. .u. .n. .i....c.. i.n. .a.t. .l.
. .L. ..i.. .gh. t.i. .n. .g P. .l. .a. n.no t. .,o. .o. . c,,3.,
& . . . . 31. I 'J60
. . . .Y2,,
1 TIIIS RETU.'tN IS SIGNED UNDER Tl!E PENALTIES OF PERJURY e us
)
. . . . . - - . . -.. -...:..- . . . . . . . . - . . Mayor 1 ..
,;_ _ - / . /
/ e
! ..Monager of Electrie Light
. . . . . . . . . . . . . h. . < . . . .a. l. 'd. . $f.' . , . . . . . .fY, .cc*. u...w ... ..
/ *
/
/
W
.... .. .&. ... ..... ..+ .....
Selecimen or Members
* * ... . .. .. ....'.,,s. , o . . .s ....... . .. .. .........e............
, of the f,gg,ggggg p gl
/ Liohi Board
(
...... .. '.- ...f..(.?%.......................................
F . ... . .................... . . . ...... ....., . ... ... ....... .. ..... ..... , SIGNATURES OF ABOVE PARTIES AFFIXTD OUTSIDE TIIE CO5D!ONWEALTII OF MASSACIIUSETFS MUST BE PROPERLY SWORN TO -
. . . . . . . _ ss. ..._ .. .19.- .
l l t l Then personally appeared. .. i i , ~ l and severallyinade oath to the truth of the foregoing statement by thect subscribed according to their best knowledge and belief. l > l i O . i Noanry Polic or ,
- Justice of the Peace i
e
. INDEX e
o . Page O Appropriations of Surplus . . . . . . . . . . . . . . . . . . . . . 21 Appropriadons Since Beginning of Year . . . . . . . . . . . . . . . . . . 5 Bonds . . . . . . . . . . . . . . . . . . . . . . . . . 6 Cash Balances . . . . . . . . . . . . . . . . . . . . . . . 14 ( Changes in the Property . . . . . . . . . . . . . . . . . . . . . 5-Combustion Engine and Other Generating Stations . . . . . . . . . . . . . . . 64-65 Comparative Balance Sheet . . . . . . . . . . . . . . . . . . . . 10-11 Co.iduit. Underground Cable and Submarine Cable . . . . . . . . . . . . . . . 10 Cost of Plact . . . . . . . . . . . . . . . . . . . . . . . 8-9 Customers in each City or Town . . . . . . . . . . . . . . . . . . . 4 D<preciation Fund Account . . . . . . . . . . . . . . . . . . . . 14 Earned Surplus . . . . . . . . . . . . . . . . . . . . . . . 12 Electric Distribution Services, Afeters and Line Transforrrers . . . . . . . . . . . . . 69 Electric Energy Accounts . . . . . .. . . . . . . . . . . . . . . . 57 Electric Ene.gy Purchased . . . . . . . . . . . . . . . . .
,. . . 54,22 Electric Operating Revenues . . . . . . . . . . . . . . . . . . . . 37 Electric Operation and hiaintenance Expenses . . . . . s . . . . . . . . . . 33-42 General Information . . . . . . . . . . . . . . . . . . . . . . 3 Generating Station Statistics . . . . . . . . . . . . . . . . . . . . 58-59 Generating Station Statistics (Small Stations) . . . . . . . . . . . . . . . . 66 Ilydroelectric Generating Stations . . . . . . .. . . . . . . . . . . 62-63 Income from 31erchandising. Jobbing and Contract Work . . . . . . . . . . . . . 51 Income Statement . . . . . . . . . . . . . . . . . . . . . 12-13 Slaterials and Supplies . . . . . . . . . . . . . . . . . . . . . 14 Aliscellaneous Credits to Surplus . . . . . . . . . . . . . . . . . . . 21 hiiscellaneous Debits to Surplus . . . . . . . . . . . . . . . . . . 21 hitscellaneous Nonoperating Income . . . . .'. . . . . . . . . . . . . 21 Alonthly P aks and Output . . . . . . . '. . . . . . . . . . . . 57 Afunicipal Revenues . . . . . . . . . . . . . . . . . . . . . . 22
[ Other Income Deductions . . . . . . . . . . . . .' . . . . . . . . 21 Q Other Utility Operating Income Overhead Distribution Lines Operated 50 69 Prcduction Fuel and Oil Stocks . . . . . . . . . . . . . . . . . . . ' 18 Rate Schedule Information . . . . . . . . . . . . . . . . . . . . 79 Sales of Electricity to Ultimate Consumers . . . . . . . . . . . . . . . .
. 38 Sales for Resale - Electric . . . . . . . . . . . . . . . . . . . . 52,22 Schedule of Estimates . . . . . . . . . . . . . . . . . . . . . 4 Steam Generating Stations . . . . . . . . . . . . . . . . . . . . 60-61 Street Lamps . . . . . . . . . . . . . . . . . . . . . . . 71 Substations . . . . . . . . . . . . . . . . . . . . . . . . 68
- Taxes Charged During Year . . . . . . . . . . . . . . . . . . . . 49
! Town Notes . . . . . . . . . . . . . . . . . . . . . . 7 Transmission Line Statistics . . . . . . . 67 l . . . . . . . . . . . . . Utility Plant - Electric . . . . . . . . . . . . . . . . . . . . . 15-17 l l 1 l l Page l FOR gab PLANTS ONLY: . 1 Boi!ers. . . . . . . . . . . . . . . . . . . . 75 l 78 Gas Distribution Services and IIouse Governors and Aleters . . . . . . . . . . . Cas Generating Plant . . . . . . . . . . . . . . . . . . 74 Gas Operating Revenues . . . . . . . . . . . . . . . . . . . . 43 i l ' Gas Operation and Alaintenance Expenses . . . . . . . . . . . . . . . 45-47
'- IIolders . . . . . . . . . . . . . . . . . . . 76 Purchased Gas . . . . . . . . . . . . . . . . . . . 48 Purifiers . . . . . . . . . . . . . . . . . . . . . 76 Reewd of Sendout for the Year in AICF . . . . . . . . . . . . . . . 72-73 48 Q /
Sales for Resale . . . Sales of C2s to Ultimate Consumers
. 44 V Sales of Residuals . . . . . . . . . . . . . . . 4S I Scrubbers. Condensers and Exhausters . . . . . . . . . . . 75 Transmise. ion and Distribution Alains . . . . . . . . . . . . . . 77 l
l l ! hi
J ~. i,
- I s
m EXTItACTS FItOM CHAPTEIl 164 OF THE GENEIIAL LAWS AS AMENDED SECTION 5G. The Mayor of a city, or the se!r etmen or munici >al light board, if any, of a town acquiring a gas or (lectrie plant shall a light board,f ppoint any andasubject manager of chapter, to this municipal havelighting whoofshall, full charge under the the operation and direction managementandofcontrol of the the plant, themanufacture mayor, selectrn and distribution of gas or electricity, the purchase of supplies, the employment of agents and servants, the method, time, price,
- quantity and quality of the supply, the collection of bi!!s, and the keeping of accounts. I!is compensation and term of office rhril be fixed in cit:es by the city council and in towns by the selectmen er municipallight board, if any; and, before entering upon the performance of his odicial duties, he shall give bond to the city or town for the faithful performance thereof in a sum and form and with surettes to the satisfaction of the mayor, selectmen or municipal light board, if any, and shall, at the end of each municipal year, render to them such detailed r,tatement of his doings and of the business and financial matters in his charge as the department may prescribe. All moneys payable to or received by the city, town, manager or municipal light board in connection with the operation of the plant, for the sale of gas or electricity or otherwise, shall be paid to the city or town treasurer. All accounts rendered to or kept in the gas or electric plant of any city shall be subicct to the inrpection of the city auditor or ofilect having similar duties, and m towns they shall be subject to the inspection of the selectmen. The auditor or ollleer having similar or the selectmen, may require any person presenting for sett!cment an account or claim against such duties,him before or them, in such form as he or they may prescribe, as to the accuracy of such accountThe or claim. p! ant to ina wilful making of a falso cath shall be punishable as perjury. The auditor or officer having shnilar duties in cities, and the selectmen in towns, shall approve the payment of all bills or pay rolb of such plants before they are paid by.the treamecr, and may disallow and refuse to approve for payment in whole or in part, any claim as fraudulent, unlaw 61 or excessive; and in that case the auditor or ofiicer having duties, or the selectmen, shall file with the city or town treasurer a written statement of the reasons for the refusal; and the treasurer shall not pay any claim or bill so disallowed. This section shall not abridge the powers conferred on town accountants by sections futy-five to sixty-one, inclusive, of chapter forty-one. The manager shall at any time, when required by the mayct, selectmen municipal light board, if any, or department, make a setement to such ofilcers of his doings, business, receipts, disburse-ments, balances, and of the ladebtedness of the town in his depat oent.l SECTION 57. At the beginning of each fiscal year, the manager of muntelpal lighting shall furnish to the mayor, selectmen or municipallight board,if any, an estimate of the income from sales of gas and electricity to private consumers during the ensidrig fiscal year, and of the expense of the plant duting said year, meaning the gross expenses of operation, maintenance and repair, the interest on the bonds, notes or certificates of indebtedcess ismed to pay for the plant, an amount for depreciation equal to three per cent of the cost of the plan; exclusive of land and any water power appurtenant thereto, or such smaller or larger amount as the departrnent may approve, the requirements of the sinking fund or debt incurred for the plant, and the loss,if any, in the operation of the plant dunng the preceding year, and of the costs, as defined in section 53, of the gas and electricity to be used by the town.
The town shall include m its annual appropriations and in the tax levy not less than the estimated cost of the gas and electJeity to be used by the town as above defined and estimated. Ily cost of the plant is intended the total amount ex to the beginnin~ of the fiscal year for the purpose of establishing, purchasing, extending or enlarging the same. By loss pended on in operation is intended the difference between the actual meome from private consumers plus tre appropriations for maintenance ior the preceding fiscal year and the actual expense of the plant, reckoned as above, for that year m case such expenses exceeded the amount of such income and appropriation. The income from sales and the rnoney appropriated as aforesaid shall be used to pay the annual expense af the plant, defined as above, for the fiscal year, except that no part of the sum therein included for depreciation shall be tmed for any other purpose than renewals in excess of ordinary repairs, extensions, reconstruction, enlargements and additions. The surplus, if any, of said annual allowances for depreciation after making the above payments shall be kept as a separate fund and used for renewals other than ordinary repairs, extensions, reconstructions, enlargements and additions in succceding years; and no debt shall be incurred under section forty for any extension, reconstruction or enlargements of the plant in excess of the amcunt needed therefor in addition to the amount then on hand in said depreciation fund. Said depreciation fund shall be kept and managed by the town treasurer as a separate fund, subject to appropriation by the city council or selectmen or municipal light board, for the foregoing purpose.
, if any, bonds or certificates of indebtedness issued to pay for the cost of reconstruction or renewals in excess of ordina notes, when such notes, bonds or certificates of indebtedness become due. All appropriations for the plant shall be either for the annua!
expenso defined as above, or for extensions, reconstruction, enlargements or additions; and no appropriation shrl! be used for any purpose other than that stated in the vote makirg the same. No bonds, notes or certificates of indebtedness shall be luued by a town for the annual expenses as defined in this section. SECTION 63. A town manufacturing or selling gas or electrielty for lighting shall keep records of its work and doings at its manufacturing station, and in respect to its distributi.ng plant, as may be re uired by the department. It shall install r.nd maintain apparatus, satisfactory to the department, for the .neasurement and recor ing of the output of gas and electrielty, and shall sell the same by meter to private consumers when reg'ared by the department, and, if required by it, shall measure all gas or electricity consumed by the towr'. The books, account: .nd returns shall be made and kept in a form prescribed by the department, and the accounts shall be closed annually on the last day of the fiscal year of such town, and a balance sheet of that date shall be taken therefrom and includcd in the return to the department. The mayor, selectmen or municipal light board and raanager shall, at any time, on request, submit said books and accounts to the inspection of the department and furnish any statement or information I required by it relatise to the condition, mant.;:ement and operation of said business. The department shall, in its annual report, describe the operation of the several municipal plants with such detail as may be necessary to disclose the financial condition nnd results of each plant; and shall state what towns,if any, operating a plant have failed to comply with this chapter, and what towns, if any, are selling gas or electricity with the approval of the department at less than cost. The mayor, or selectrnen, or raunicIpal light board,'if any, shall annually, on or before such date as the department fixes, make a return to the departmen*, for the preceding fiscal year, signed and sworn to by the mayor, or by a majority of the selectmen or municipal light board, if any, and by the Inanager, sta*ing the financial condition of said business, the amount of authorized and existing mdebtedness, a statement of income and expenses in such detail as the department may require, and a list of its salaried oflicera and the salary paid to each. The mayor, the selectmen or the municipallight board may direct any additional returns to be made at such time and m such detail as he or they may order. Any oflicer of a town manufacturing or selling gas or electricity for lighting who, being required by this section to make an annual return to the department, neglects to make such annual return shall, for the first fifteen days or portion thereof during which such neglect continues, forfeit five dolins a day; for the second fifteen days or any portion thereof, ten dollars a day; and for each day thereafter not more than fifteen dollars a day. Any such of!icer who unreasonably refuses or neglects to make such return shall, in addition thereto, forfeit not more than five hundred dollars. If a roturn is defective or appears to be erroneous,
~m the department shall notify the otliccr to amend it within fifteen days. Any such oflicer who neglects to amend said return within
, \ the time specified, when notifiwd to do so, shall forfeit lifteen dollars for cach day during which such neglect continues. All forfeitures incurred under this section may be recovered by an information in equity brought,in the supreme judicial court by the attorney general, at the relation of the department, and when so recovered shall be paid to the commonwealth. SECTION 69. The supreme judicial court for the county where the town is situated sha!! have jurisdiction on petition of tho department or of twenty taxable inhabitants of the town to compel the fixing of prices by the town in compliance with sections fifty-seven and fifty-eight, to prevent any towa from purchasing, oper?. ting or relling a gas or electric plant in violation c! r.ny provision of this chaptcr, and generally to enforce complianco with the ternu and provisions therect relative to the manufacture or distribution of gas or electricity by a town. M . _ _ . . -. . .. . -.
,u_.a ~--& - - e Ja ,---_A -2,.m___n-m-- - , -. L - -m n _:: -.6 - Am -. _ a .-4.ms'--.u.-o .M ,,.e1,.,, ,s_ ___.,, u._ _ _ , , _ a 1
O VERMONT ELECTRIC COOPERATIVE, INC.
- Units No. I and No. 2 1
i Seabrook Nuclear Power Station Seabrook, New Hampshire l O Information furnished pursuant to Section 50.33 of Commission's Rules and Regulations with respect to the particular Applicant named above as part of Final Safety Analysis Report and Operating License Application for the above Units. j July .19_81_ l i O I , . .. _ . . -. . - - .._ - - ..... .. ..~ .. - , . - . - . .- - --- - - . .. - . - . - - -- - -
ORGANIZATION AND CONTROL (a) Name of Applicant Vermont Electric Cooperative, Inc. (b) Address of Applicant Senool Street Johnson, Vermont 05656 (c) Description of Business of Applicant Vermont Electric . Cooperative, Inc. ("VEC") is an electric distribution cooperative operating as a Vermont Corporation with principal offices at School Street, Johnson, Vermont. Additional information on this Cooperative is given in the 1980 Annual Report attached as " Exhibit 1" (d) Corporate Organization i VEC is a corporation organized under the laws of the State of Vermont. (e) Corporate Officers and Directors The names and residence addresses of VEC's Trustees and principal officers are as follows: Name Residence J. Douglas Webb, President Fairfax, Vermont Clyde Jones, 1st Vice-President East Dover, Vermont William Kinney, 2nd Vice-President Jeffersonville, Vermont Marshall Washer, Treasurer Johnson, Vermont Laura L. D. Howe, Secretary Jamaica, Vermont Benoit Blais, Trustee Derby Line, Vermont Arnold Centabar, Trustee Enosburg Falls, Vermont J. George Butler, Trustee Jacksonville, Ver mont Sumner Farr,. Trustee Richmond, Vermont Henry Pillsbury, Trustee Williston, Vermont Clifford Snider, Trustee Richford, Vermont Richard Allen, Trustee Jacksonville, Vermont Ernest Earle, Jr. Trustee Eden, Vermont Alvin Warner, Trustee Lowell, Vermont p)
\.
Gerard Caron, Trustee William J. Callagher, Vice-President & Westford, Vermont Morrisville, Vermont Executive Manager Jerry L. Bucholz, Assistant Treasurer Morrisville, Vermont
& Controller
All of the Trustees and principal officers of VEC are citizens of the United States (V) of America. VEC is not owned, controlled or dominated by an alien, foreign corporation or foreign government. II. FINANCIAL QUALIFICATIONS Under the Joint Ownership Agreement, Vermont Electric Cooperative, Inc., is responsible for its Ownership Share of the eperation and maintenance cost of the Units which, when the pending transaction; described herein have been consummated prior to commercial operation, will be 0.41159 percent of those costs, and a similar percentage of the ultimate cost of decommissioning the Units. Based upon the estimates set forth above under Part IV of the General Information, Vermont Electric Cooperative, Inc.'s share of these costs should amount approximately to $619,000 and $619,000 for the first five years of operations of Units 1 and 2, C/ respectively; and approximately $173,000 to $ 355,000 for the decommissioning of the two Units. In addition, Vermont Electric Cooperative, Inc.'s share of fuel expenses during i the period would be $2,117,000. As evidence of its financial qualifications to meet those costs, Vermont Electric Cooperative, Inc. , submits herewith. (1) 1980 Annual Report to Members (Exhibit 1) . 111 . REGULATORY AGENCIES AND PUBLICATIONS i (a) Regu:atory Agencies l The following regulatory agencies have jurisdiction over the rates and services of Vermont Electric Cooperative, Inc. Vermont Public Service Beard l ,, 120 State Street l ('x_/) Montpelier, Vermont 05602 Rurcl Electrification Administration
/ ') U.S.D. A. Building - South L/ Washington, D.C. 20250 (b) Publications The following trade and news publications are used by Vermont Electric Cooperative, Inc., for official notification, and/or are otherwise appropriate for notices regarding this unit.
i Burlington Free Press 191 College Street Burlington, Vermont 05401 i Brattleboro Reformer 71 Main Street Brattleboro, Vermont 05301 Lamoille County Weakly Main Street Johnson, Vermont 05656 The Transcript c/o News & Citizens Morrisville, Vermont 05661 Newport Daily Express Nine Central Street Newport, Vermont 05855 St. Albans Messenger 281 North Main Street St. Albans, Vermont 05478 p i (
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