ML18230A814
| ML18230A814 | |
| Person / Time | |
|---|---|
| Site: | Harris  |
| Issue date: | 06/09/1977 |
| From: | Carolina Power & Light Co |
| To: | Office of Nuclear Reactor Regulation, State of NC, Utilities Commission |
| References | |
| Download: ML18230A814 (214) | |
Text
EXHl BITS-(For Direct Testimony)
Doi'fiotN gP-Voe-YQ Contro)t'>lr a~ia'I IZED Of6gygMH IlECUUi'fo'p ggg Ig pig CAROLINA POWER&LIGHT COMPANY Before the NORTH CAROLINA UTILITIES COMMISSION Docket E-2, SUB 297 Application for!ncrease in Electric Rates
Carolina Power 6 Light Company N.C.Utilities Commission Docket No.E-2, Sub 297 EXHIBITS SHEARON HARRIS ROBERT R.NATHAN JULIUS BREITLING PAUL S.BRADSHAW FREDDY R.HORNE JAMES M.DAVIS, JR.Filed December 1, 1976 I I 1975 Annual Report
Annual iVleeting The 1976 Annual Meeting of Shareholders will be held in Raleigh, iVorth Carolina, on May 19 at 11 A.M.A formal notice of the meeting together with a proxy statement and form of proxy will be mailed about April 14.Highlights 1975 1974 Percent Change Operating Revenues Net Income Number Shares of Common Stock Outstanding (Year End)Earned per average Common Share outstanding Cash Dividends Paid per Common Share Dividends Paid (Common and Preferred)
Kilowatt-Hour Sales (Thousands)
- Excluding Nonterritorial Sales Total Sales System Capability Including Purchases (Kilowatts)
Maximum Service Area Hourly Load (Kilowatts)
Total Utility Plant (including iVuclear Fuel)Construction Expenditures Customers (Year End)Employees (Year End)32,693,000
$2.70$1.60$66,894,000 23,43 9.000$r 221$1.60$56.326.000 32%41 39 22 19 24,057,000 24,118,000 23.607.000 24,076,000 7,072,000 6 206 000 14 5,060,000$2,559,346,000
$300,659,000 661,000 4,749 4,771,000$2,252,856.000
$381,375.000 648.000 4,742 6~14 (21)2$606,329,000
$460.977.000
$101,622,000
$72.271.000
- Nonterritorial sales are sales to other electric utilities outside the Company service area.
Operating Revenue Dollar Source Residential customers Commercial customers Industrial customers Wholesale customers Nonterritorial sales Other electric operating revenues Use Fuel Deferred fossil fuel expense.net Purchased and interchange power.net Taxes Wages and employee benefits" Depreciation Maintenance (except employee wages)Other operating expenses Compensation to investors for use of their Amount$'1 92,734,000 1'11,602,000 1 67,798,000 99,990,000 7.485.000 26,720,000
$606,329.000
$232,722,000 20,650.000
'1 3,115.000 9'1,606,000 43.667,000 46.648,000 23,604.000 23,451,000 Cents Per Dollar 32/18 28 17'1 4 100/38g 2 15 7 8 4 4 funds (mterest, 9g, preferred and pref-erence stock, zg;common stock, 7g)110,866.000 18$606.329.000 1008"Does not include$22,882.000 of wages and employee benefits for Company employees that was charged to Construction and other accounts.Contents , Il Inside Front Cover Highlights of 1975 1 The 1975 Operating Revenue Dollar 2 The President's iviessage 4 Financial 7 Rates 8 Construction 9 Operations 11 Ownership 12 Customers 14 Territory Served I 16 People.17 Statement of Income 17 Statem'ent of Retained Earnings 18 Balance Sheet 20 Statement of Source and Use of Financial Resources 21 Notes to Financial Statements 26 Auditors'pinion 27 Directors and Officers Transfer Agents and Registrars 28'tatistical Review This Annual Report is submitted for information oF sharehnldors.
it is not intended for uso in ronnortion with any salo or purrhas<.of.or any nffor or soliritation oF offers to buy or sell.securities.
Carolina Power si Light Company.336 Fayetteville Street.Raleigh.N.C 27602
The President's iVlessage My fellow shareholders:
Our Company's financial picture showed im-provement in 1975, largely as the result of additional revenues produced from rate increases.
Earnings per share of common stock were$2.70, up from the severely depressed level of$2.21 in 1974.The annual dividend per share of common remained at$1.60.<<'g~-1:i""..,'...-
~~'.~I 4 i'S"j'go into operation.
The second unit is scheduled for commercial service in 1977.The units are expected to have capacities of 821,000 kilowatts each."...industrial sales lagged behind'l974...." Territorial energy sales increased only 2 percent to 24.1 billion kilowatt-hours.
Commercial and resi-dential'sales showed a healthy increase, but indus-trial sales lagged behind 1974~reflecting the general slowdown in the economy.During the fourth quarter some turnaround was experienced in the industrial sector.Total operating revenues were$606 million, up from$461 million in 1974.and net income rose from$72.3 million to$101.6 million.During 19/5 our Company spent$301 million for construction and raised a net of$169 million of new capital.We expect to spend$270 million on construc-tion during 1976 and$826 million for the three years 1976-78.Our energy forecasts indicate that as industrial activity returns to a more normal level, growth in energy usage on the CPZcL system will be at a 7.4 percent annual rate for the next ten years.That growth P'~~.rate would compare with 9 percent for the 1966-75~S period.',l'~, s~"We made substantial reductions in our construction We made substantial reductions in our construc-tion plan in 1974 and again in 1975.The latter reduc-tion represented a reluctant tailoring of the con-struction budget to the amount of capital we~>'@,.".i"~,;.;-.:
j-.;~could reasonably expect to attract.The present-~""i'jfj+i',,.'ji"'">~",...>>plan will support growth in demand at a'~~rate of only 6.5 percent during the next--pz ten years, and may result in shortages.of energy at intervals of peak de-'.';-" mand beginning in1981.Weretain: ':<.some flexibility for moving up the=construction of coal-burning plants if load grows as we ex-pect that it will and earnings improve sufficiently to permit us to obtain the ad-ditional capital on a':.i;..reasonable basis.-'r Peak demand on the sys-tem rose 6.1 percent to 5,060,000 kilowatts in 1975.We placed our second nu-clear generating facility in com-mercial operation in November.It is the first unit of the Brunswick plant to
"...we produced 22 percent of our energy from nuclear plants...." During the year we produced 22 percent of our energy requirements in nuclear plants.74 percent, in coal-burning plants.4 percent in hydro plants.and less than 1 percent by burning oil and natural gas.We are fortunate to have most of our generation from the more plentiful fuels-coal and uranium.In 1976 we expect that 30 percent of total generation will be from , nuclear plants.If it had been necessary for CPAL to produce the same amount of energy it obtained from nuclear plants during 1975 by burning coal or oil at the aver-age cost for our system, the Company's fuel bill would have been increased$52 million."...1975 was a good year for our customers...." In spite of the fact that electric bills have risen sharply, 1975 was a good year for our customers.
too.In 1960 the average CPhL electric bill for 5.067 kilowatt-hours annually required a little less than 2 percent of the average buying income of Carolina families.Income figures for 1975 are not available.
But in 1975 the average CP8cL electric bill for 11.094 kilowatt-hours required less thar;3 percqnt of the 1974 average buying income.Thus, while energy usage more than doubled in the last 15 years, the share of buying income required to pay the bill in-creased much slower.!Our average revenue per kilowatt-hour for sales to residential customers continues to be one of the low-'st for electric companies that operate along the east coast.In January of 1975 we received decisions in the retail rate cases that were filed in late 1973.Also in january we began billing a higher base rate and fuel charge to wholesale customers.
With escalating costs.we found it necessary to file during the summer for another retail rate increase.part of which we began collecting on an interim basis.The details of these rate actions are presented elsewhere in this report.While our revenues are up and earnings have im-proved and while tight cost controls are in effect in every area of our operation.
the Company's earnings have remained below what the regulatory commis-sions have found to be just and reasonable because of the escalating costs in every area of the Company's operation."We are very dependent upon reasonable and re-sponsive regulation
~..." We are very dependent upon reasonable and re-sponsive regulation.
The speed with which reg-ulators act is very important.
In 1975 the North Carolina General Assembly expanded the State Utilities Commission from five to seven members and authorized it to act in three-member panels.The case we filed in July 1975 was decided in February.That is only seven months from filing to final disposition.
In December the North Carolina Commission called for bids from independent firms to study the operation of CPhL and three other utility companies.
This is a step we have publicly advocated.
We are confident that such a study will provide additional evidence for our customers that we are doing a good job for them."...for the remainder of this century, the electric industry must depend primarily on coal and uranium for fuel." Through participation in the Electric Power Re-search Institute.
our Company is involved in the ex-ploration and development of alternative methods of producing electricity.
However.it is very clear that for the remainder of this century the electric industry must depend primarily on coal and uranium for fuel.Other technologies simply will not be commercially available within this period.A small but vocal minority continues to question the safety of nuclear plants.The safety record of this industry is without parallel.Extensive studies indi-cate that the risk involved with nuclear plants is min-imal and controllable so as to make them quite ac-ceptable.and particularly so when one considers the energy choices available to our society"This country needs a cohesive national energy pol-icy.This country needs a cohesive national energy policy.That policy should balance the need to protect the environment with reasonable use of domestic re-sources to supply energy.As it is now.some 50 com-mittees and agencies of the federal government ad-minister a fragmented energy program.Until this in-efficient system is streamlined.
there is little chance for developing a comprehensive program to resolve the national energy dilemma.There is need for much broader public understanding of energy issues.The year just ended was not an easy one for our Company.We hope we have'turned the corner and that the days ahead will be better.I am proud of the 4.700 men and women with whom I work at CP8 L.They have shown commendable flexibility and re-sourcefulness in adapting to changing circumstances and in finding solutions to the varied problems that face us.We also appreciate your continued support and confidence and pledge our best efforts in the chal-lenging days ahead.Respectfully submitted by order of our Board of Directors.
Sincerely yours, March 17, 1976 Chairman/President I~
Financial Net Income, Earnings and Divi'dends Net income for 1975 was$101,622,000 as com-pared with$72,271,000 for 1974.Earnings per share based on the'arger number of shares outstanding were$2.70 as compared with$2.21 in 1974.Div-idends totaling$1.60 per share were paid on common stock during the y'ear.Operating Revenues.Operating revenues from sales of electricity within the service area during 1975 increased$151.2 million over 1974.Rate increases placed into effect since 1970 to recover increased costs resulted in in-*creased revenues of$324,819.000 in 1975.$180,760,000 in 1974 and$68,091.000 in 1973.Sales of electric ene"gy, excluding nonterritorial sales, increased about two percent in 1975.essen-tially the same percentage of growth as in 1974.The small increase during the past two years reflected the effects of energy conservation, relatively mild weather and reduced economic activity.Sales of energy to industrial customers showed a 5 percent net decrease in 1975 from the year earlier.In the fourth quarter.however, industrial sales reflected a 7 per-cent increase over the fourth quarter of 1974.Operating Expenses Operating expenses increased 29 percent or$111.8 million in 1975 as compared with a 43 percent.or$116 million increase in 1974.Cost of fuel for electric generation decreased 1 percent in 1975 after increasing 122 percent in 1974.Total kilowatt-hours generated in fuel-burning plants increased 2 percent in 1975 after decreasing 1 per-cent in 1974.Average costs of fossil fuels increased only 1 percent in 1975 after increasing by 135 percent.in 1974.Nuclear-fueled generation increased by 16 percent in 1975, reflecting the operation of unit two of th'e Brunswick nuclear plant which was declared in commercial operation in November 1975.Deferred fuel cost accounting (begun in 1974 with the implementation of fossil fuel adjustment clauses), resulted in a net charge against income of$20.7 mil-lion in 1975 as compared with a net credit to income in 1974 of$35 million.Deferred fuel costs to be billed in future months reached$35 million at the end of 1974 and dropped to$14.4 million at the end of 1975 principally as a result of a significant drop in the unit cost of fossil fuel burned.Also.for North Carolina retail operations, the Company started billing for higher fuel costs on a current basis effective Septem-ber 1, 1975;and the accumulated deferred and un-billed fuel costs which totaled$12.4 million at that time ($7,942,000 at December 31, 1975)are being collected over.approximately 12 months.Purchased power costs decreased 10 percent in 1975 as compared with an 85 percent increase in 1974.The 1975 decrease reflects a 19 percent reduc-" tion in kilowatt-hours purchased because the Com-pany's own plants generated a greater proportion of energy requirements.
Maintenance expense (excluding employee wages)increased$3.4 million in 1975 as compared with a decrease of$2 million in 1974.During the last quarter of 1975, the Company resumed normal maintenance schedules which were interrupted in 1974 when discretionary maintenance was deferred because of reduc'ed revenues.Other operation and maintenance expenses in-creased in 1975, reflecting the impact of inflation on the costs of goods and services.In 1975 the Company placed in service the initial unit at the Brunswick nuclear power plant which, while having a signif-icantly lower fuel cost than coal-fired plants.has a higher requirement for other operating expenses.Depreciation expense increased$11.1 million in 1975 as compared with$3.7 million in 1974.During 1975 the Company began depreciating the first unit of its Brunswick nuclear plant.and effective October 1,, 1975 adopted revised depreciation rates.The revised rates generally reflect shorter remaining service lives for electric plant in service, which increased depre-ciation expense by$2,538.000.
Taxes other than income taxes reflect increased state and local taxes on revenues and plant in service.The increase in 1975 over 1974 was not as much as normal because in 1974 the Company refined its ac-counting for North Carolina gross receipts taxes.This resulted in a nonrecurring increase of$3,991,000 in expenses in 1974.Income tax expense increased to$45.2 million in 1975 from$16.9 million in 1974.In 1975 the increase resulted primarily from increased operating income before income taxes.Tax expense for 1975 represented 15 cents of each revenue dollar with 8 cents for state and local gov-ernments and 7 cents for federal taxes.This compares with 13 cents, 9 cents and 4 cents, respectively, for 1974.Other Income Other income increased$9.3 million in 1975 as compared with a$22.5 million increase in 1974.The
~<<t it<<I r, eve Percent Change from 1973 Percent Change from 1974 1974 (000's omitted)1975 (000's omitted)34%$441 913, 37 (45)13,499 (1)2~5,565 22$593,161 7,485 5,683 32 460,977 35 606,329 122 85 17 (9)(1)12 42 (20)235,842 (35,028)14,494 38,031 20,180 16,929 35,544 40,684 16.947 232,722 (1)'20,650 159 13,115 (10)43,667 15 23,604 17 23,451 39 46,648 31 46,436 14, 45,170 167 495,463 29 383,623 43 77,354 5 1'I0,866 43 54,609 43 16,068 53 776 97 10 23 31 59,957 19,734 1,020 71,453 46 , 13 80,711 29 18 191,577 89,955 148,807 21 76,536 35 101,622 25,752 41 25 72,271 10 20,672 59$75,870 47 21 22$51,599 (3)23,324 13$2.21 (14)$160 4 28,I09$2.70$1.60 1915<<'nalysis of Results of Operations
- 1 e..Op'crating
'revenues:
t":;, Total from electricity sales in service area i<j":"i: Noaterritoriai etectrtctty sales ,."'.;'.Miscellaneous electric'revenues ,-.Total operating revenues t:j'perating expenses: Fuel'.-'eferred fossil fuel expense (credit), net-".," Purchased power.,"=Wages and employee benefit:-,": Maintenance (except employee wages)'Other operation expenses Depreciation Taxes other than income taxes'-'"'., Income tax expense j,*'"'.Total operating expenses t.Operating income ,.Other income: ':-,'".'-'llowance for funds used during construction
';;-;"'-Income taxes-credit Total other income Gross income'nterest charges.;!<<Net income<:,: Preferred and preference stock dividend requirements
'-.":Earnings for common stock ,(Average common shares outstanding
"+: Earnings per common share ,'>Common dividends paid per share WV.'cy~~5",See Statistical Review for additional data for the years 1965 and 1970 through<<'--""::: '.'-'.p"-'-'-"'-': '-.-=.-'-..-'---',-': cs o'e><or"<es~<<ryr<<t'~-"<<<<<<s<<<<a+tat' t<<t"~'r>s
(Millions of Dollars)307 341 Eg 256 205 Electric Operating Revenues';and Net Income 461 allowance for funds used during construction in-creased$5.3 million in 1975 as compared with a$16.5 million increase in 1974.These increases reflect larger amounts of construction work in progress dur-ing the respective periods.Income tax credits increased$3.7 million in 1975 as compared with a$5.6 million increase in 1974.reflecting primarily the increases in tax-deductible interest charges applicable to the greater amount of funds invested in facilities under construction.
Financing and Construction Construction expenditures during 1975 totaled$301 million.Of this,$244 million was for generating facilities.
$23 million for transmission and$34 mil-lion for distribution and general facilities.
In addi-tion.nuclear fuel expenditures for 1975 totaled$17.5 million.During 1975 the Company completed the follow-ing financings:
lanuary 1975, four million shares of common stock for net proceeds of$56 million and$22.35 million principal amount of First Mortgage Bonds, 11'is%Series.due 1994;in March, two million shares of$2.675 Series A Preference Stock for net proceeds of$47.9 million;in May.$100 million prin-cipal amount of First Mortgage Bonds.11%Series.due April 15~1984;and in November, five million shares of common stock for net proceeds of$86.075 million.Proceeds from 1975 financings were used to retire$131.6 million of short-term notes outstanding at the beginning of the year.In addition to financings..funds were provided from the recovery of capital through depreciation and amortization totaling$57 million;from earnings re-tained and invested in the business of$30 million;and from deferred income taxes and investment tax credits totaling$39 million.The Company's construction program for 1976 through 1978 is estimated to require$826 million with$270 million of this amount budgeted for 1976.170 187 Tax Status of Common, Preferred and Preference Dividends Under existing Internal Revenue Service regula-122 135 147 102I 72 22 23 25 27 25 38 1965'66'67'68'69'70'71'72'73'74'75 tions, two percent of dividends paid to common shareholders during 1975 constituted a return of capi-tal for federal income tax purposes and is not taxable as dividend income.All dividends paid in 1975 to holders of preferred and preference stock are taxable as dividend income.Capitalization The Company's capitalization at December 31, 1975 was$2.213,558.580, consisting of 49.9 percent first mortgage bonds, 32.6 percent common equity.15.2 percent preferred and preference stock and 2.3 percent a six-year promissory note.
Price Ranges and Dividends Paid Per Share Common and Preferred Stock Common Stock N.Y.Stock Exchange Reported Prices 1974 First Quarter Second Quarter Third Quarter Fourth Quarter 197S First Quarter Second Quarter Third Quarter Fourth Quarter High$23'/4 19'/~14'/4 14%Low$20 13~/a 11 I/a'10~/2.17 11 18/a'13/a 18a/a 15%20'/4 16'/a Dividends Paid$.40.40.40.40.40.40.40.40$5 P:eferred Stock American Stock Exchange Reported Prices 1974 First Quarter Second Quarter Third Quarter Fourth Quarter 1975 First Quarter Second Quarter Third Quarter Fourth Quarter High$66~h 61'/4 56'/4 52'/a 551/2 53~/z 55'/a 59 Low$60 55 50 46 49 48 49%50 Dividends Paid$1.25 1.25 1.25 1.25 1.25 1.25,~1.25 1.25 Note: Other voting stocks are not actively traded.Regular quarterly dividends have been paid on all preferred and preference stocks.Rates Rate increases placed into effect during 1974 and 1975 produced additional revenues of$252.996,000 for the Company during 1975.North Carolina A permanent retail rate increase of a'pproximately 21.5 percent was approved by the North Carolina Utilities Commission in January 1975 with a minor modification of the residential rate schedule.The Company had filed for this increase in October 1973, and most of it had been placed in effect by the Com-pany in October 1974.In August 1975, the commis-sion approved a revised fuel charge requested by the Company and allowed.the Company to collect the unamortized fuel expense account over a 12-month period at the rate of.089 cents per kilowatt-hour.
Intervenors in these proceedings have appealed to the Court of Appeals.South Carolina"A permanent retail rate increase of 18.3 percent (rather than the 21 percent requested in October 1973)was granted by the South Carolina Public Service Commission in January 1975.In the same month, the South Carolina Commission also approved a fossil.fuel adjustment clause similar to the one approved in North Carolina, which continues to be in effect in South Carolina.Wholesale An increase in wholesale rates and a fossil fuel adjustment clause for municipalities, private utilities, and'rural electric cooperatives were placed in effect by the Company in January 1975.Applica-tion for these increases was made to the Federal Power Commission in July 1974.Hearings on the case began in April 1975.but a final decision is pending.During 1975, these increases produced additional revenues of$50,732.000
($19,978.000 from base rates and$30,754.000 from the fossil fuel adjustment charge), which are subject to refund.Increasing costs in almost every area of the Com-pany's operations required that the Company file for additional rate relief in 1975.North Carolina In July 1975, an application to increase retail rates in North Carolina by approximately 22 percent was filed by the company, and a 12 percent interim in-crease was granted by the North Carolina Utilities Commission in August.Hearings on the general rate increase began in December 1975 and were con-cluded in January.In February.the commission ren-dered its decision allowing an increase of 22 percent or$82 million annually which was the full amount requested.
In its order.the commission redesigned all resi-dential rates and included a basic facilities charge regardless of the kilowatt-hours used.In addition.it instituted a higher summer than winter rate for all-electric customers for June through September usage.The commission also modified the approved fuel charge to reflect nuclear fuel costs and purchase and interchange power.and rolled more of the current fuel costs into the basic rates.
South Carolina The Company also made application in July 1975 for a rate increase of 7.5 percent to South Carolina~residential customers.
This increase was to equalize the residential rates in tVorth Carolina and South Carolina.In August 1975, the Company filed to in-crease retail rates in South Carolina by about 23 per-cent.An interim increase of 12 percent was placed in effect in September.
The South Carolina Public Ser-vice Commission has not yet set a hearing date, but effective March 1, 1976, the full increase was placed into effect subject to refund pending final hearings.Wholesale In December 1975.the Federal Power Commission directed CPgrL to modify the basis of its fuel charge to'holesale customers effective January 1, 1976.The charge must now be based on costs for fossil and nuclear fuel and purchased and interchange power.On January 30, 1976, the Company filed with the Federal Power Commission to increase wholesale rates by approximately 34.5 percent.The increase, based on anticipated 1976 sales, would produce addi-tional annual revenue of$33.7 million for the Com-pany.In addition, the Company is seeking a tempo-rary fuel charge of.088 cents per kilowatt-hour (to be applied over a period of up to 12 months)as a means of recovering
$4.6 million in deferred fuel expenses.On February 27, 1976 the FPC accepted the Com-pany's wholesale rate filing and suspended the effec-tive date until May 1.1976.However, the FPC order required the Company to submit revised tariffs re-flecting the elimination of tax normalization.
Peak Pricing Hearings As a result of the growing interest in new methods of rate design and a statutory requirement.
a hearing on peak load pricing.time-of-day metering, conserva-tion, and load management began on December 16, 1975 before the iVorth Carolina Utilities Commission.
The Company filed affidavits setting forth its position and recommended that studies be made to determine whether the benefits of new rate designs would out-weigh the costs.In their testimony.
CP8tL representa-tives described the Company's efforts in load man-agement and its participation in national rate design studies being conducted by the Electric Power Re-search Institute and the Edison Electric Institute.
Construction iVew Facilities On November 3.Unit iVo.2 of the Brunswick plant was placed into commercial operation at 790.000 kilowatts.
During pre-operational testing, this unit produced the first nuclear-generated electricity in iVorth Carolina on April 29.When the second unit is Common Stock Average Shares Outstanding
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J'~>k-1:60 2.86 2.58 2.70 COnStruCtiOn EXPenditureS (Millions of Dollars)I in)~ted 1965 awacssaaaca~
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75~A'~u.ri far..'76 ,'77'78 301 270 263 293 358 381 completed in 1977, the plant will represent an in-vestment of approximately
$793 million, including the expense for cooling towers and other modifica-tions to the cooling system which are required under present operating and discharge permits.Construction Plan Revision Revised energy forecasts.
coupled with the un-availability of capital on, reasonable terms.caused the Company to make major revisions in construction plans.The revisions involved all future generating units and were designed to reduce capital outlays during the 1976-1979 time period.The current plan supports a growth rate of 6.5 percent'annually
-less than the 7.4 percent com-pounded ten-year growth rate which latest studies indicate will occur.Growth of more than 6.5 percent annually may result in negative reserves in the early 1980s.However, if earnings are sufficient to attract.more capital, the Company could accelerate the con-struction of one or more coal-fired plants.Proposed Construction Unit Brunswick¹1 (821MW)Roxboro¹4 (720MW)Mayo¹1 (720MW)Harris¹1 (900MW)Mayo¹2 (720MW)Harris¹2 (900M W)Undesignated (1150MW)Harris¹4 (900MW)Undesignated (1150MW)Harris¹3 (900MW)Type Nuclear Fossil Fossil Nuclear Fossil Nuclear Nuclear Nuclear Nuclear Nuclear In-Service Date 4/77 3/80 3/83 3/84 3/85 3/86 3/87 3/88 3/89 3/90 Transmission Lines Authorized Authorized transmission line construction for 1976 and following years includes 286 miles of 500,000-volt line, 650 miles of 230.000-volt line, and 151 miles of 115,000-volt line.Environmental Matters CP8cL spent nearly$1S.3 million during 1975 for construction of environmental protection facilities.
Of this,$8 million went for air quality control equip-ment and$7.3 million for water quality control de-vices.Projects completed during 197S included elec-trostatic precipitators at the Cape Fear, Lee.Sutton, and Weatherspoon plants;modifications to the cir-culating water system at the Weatherspoon plant;and installation of mechanical cooling towers at the Cape Fear plant.Expenditures for environmental protection equipment at new and existing plants are expected to be$34 million in 1976.A cooling tower at Roxboro¹3 is scheduled for completion in 1976.Construction is underway at the Brunswick plant on two natural draft, salt water cooling towers, which are scheduled to be operational by May 1978.However, the Company has challenged that por-tion of the Environmental Protection Agency (EPA)plant discharge permit which requires construction of the towers for the Brunswick plant and has asked for a re-evaluation of that requirement so that further studies of the present cooling system's impact on marine life in the Cape Fear estuary may be completed and evaluated.
Because construction of towers may not be necessary.
the Company feels that the re-evaluation is clearly in tne public interest.A prehear-ing conference before an EPA administrative judge was held in january 1976;the full hearing is scheduled to begin in Raleigh on june 1.Amendments to the Clean Air Act of 1970 were among the important issues proposed in Congress during 1975.Originally intended to provide more time and flexibility for meeting the strict provisions of the 1970 law, the amendments now being consid-ered by Congress would, instead.increase its restric-tiveness.If adopted.the amendments would close a major portion of the nation's land to industrial de-velopment, nearly double the cost of pollution con-trol equipment for electric plants.greatly increase the electric industry's capital requirements.
and bring about further large increases in the cost of electricity for customers.
Operations Total system energy requirements for 1975 were 25.8 billion kilowatt-hours.
Of this total, about 0.1 billion kilowatt-hours were sold to utilities outside the service area.System load factor was 58.1 percent as compared to 60.2 percent in 1974.System capabil-ity, including long-term contract purchases from other utilities, was 7,071,500 kilowatts.
Total generating capacity is 6,843,500 kilowatts.
Of this, 56.7 percent is from seven steam electric plants burning fossil fuels, 21.8 percent from the Robinson and Brunswick nuclear units, 18.4 percent from 33 internal combustion turbine generators, and the remaining 3.1 percent from four hydroelectric plants.Sources for the total energy produced were: 72.5 percent coal, 22.4 percent nuclear.3.8 percent hydro-electric,.1 percent residual oil,.4 percent No.2 oil, and.8 percent natural gas.The Sutton plant was con-verted from residual oil to coal in January 1975.The r
Fuel Expense All fuels as burned (Cents per ill)lion Htu)Total Utility Plant (.Billions of Dollars)Service Area Peak Load (Thousands of Kiloivatts) a.~Summer't Following tIVinter 2.56 5,060 2.25 4,7714,7'11 l 1.96 3,625,"<<3 171 45 45 1.24 2,445 I 27 31 31.53.66~1,943.I I I I<<I I II)~'<<j'-.~I I ,I'-I I I I ll l~s.i 1965'67'69'71'73'75 1965'67'69'71'73'75 1965'67'69'71'73'75 1 I, Company does not plan to use residual oil or gas as future fuel sources.Of the 7.5 million tons of coal burned during the year, 61.1 percent was received under long-term con-tracts.The Company expects to receive approxi-mately 81 percent of its 1976 coal requirements from contractual agreements.
Peak Loads A new peak load for the system was reached on August 25 when customer demand was'5,060,000 kilowatts, 6.1 percent higher than the 1974 summer peak.A winter peak load of 4,968,000 kilowatts was reached on January 19, 1976.A new record for energy used in one day was set on January 19 when custom-ers required 102,578,000 kilowatt-hours.
The previ-ous one-day record of 97.158.000 kilowatt-hours was on August 26, 1975.Reliability Groups CP&L continues its participation as one of the 30 companies in the Southeastern Electric Reliability Council (SERG).Membership includes all power suppliers with generating capacities of at least 25,000 kilowatts.
The Company is also one of seven electric utilities in the Virginia-Carolinas Reliability Group (VACAR).Improving system reliability for member companies is the principal purpose of both groups.Long-term Coal Contract The Company is currently negotiating with Pick-ands Mather&Company to develop a second deep coal mine in Pike County, Kentucky.In 1974, an agreement was made to develop the first mine from which initial deliveries of coal are expected in 1976.CP&L expects to receive a total of 1.6 million tons per year for 25 years from the two.mines.
This is low sulfur coal which the Company expects will enable it to meet air quality requirements without adding scrubbers to a new plant.Ownership Distribution of Stock Ownership (Common, Preferred, and Preference Stock Combined)Shareholders Shares Number Percent Number Percent The Carolinas......39,510 43.12 8,607,230 22.90 Elsewhere.........52,118 56.88 28,972,820 77.10 Totals...........
91,628 100.00 37,580,050 100.00 The total number of shares and shareholders in-creased considerably during the year as a result of the issuance and sale of nine million shares of common stock and two million shares of preference stock.At the end of the year.there were 69,199 holders of x common stock, 15,418 holders of preferred stock, and 7,011 holders of preference stock, or a total of 91,628 shareholders compared with 67,688 at the end of, 1974.The percentage of those living in the Carolinas was 43.12 percent at the end of 1975.In addition to shareholders indicated by these statistics, several thousand shareholders own shares which are held by banks, stockbrokers, investment
.trusts,.or nominees.At the 1975 annual meeting, more than 82 percent of the total shares outstanding were represented in i person or by proxy.The largest beneficial shareholder of record at the end of 1975 had less than 2 percent of the shares outstanding.
Dividend Reinvestment Service Interest in the dividend reinvestment plan con-tinued to increase during 1975.About 4,100 shareholders are participating in the Dividend Rein-vestment Plan initiated by the Company in 1973.Under the plan, Company common.preferred, or preference dividends may be automatically rein-vested in additional shares of common stock.The program is administered by iVorth Carolina National Bank and any questions regarding participa-tion should be directed to NCNB, Dividend Rein-vestment Service, Post Office Box 120, Charlotte, North Carolina 28201.
Customers Although total energy sales increased in 1975 by only 1.9 percent, energy consumption by all classes except industrial was up significantly.
Sales within the service area were 24.1 billion kilowatt-hours compared to 23.6 billion in 1974.Kilowatt-hour sales~to residential customers increased 4.0 percent;sales to commercial customers increased 6.2 percent;sales for resale increased 7.6 percent;and sales to indus-trial customers decreased 5.3 percent.The number of retail customers increased 1.9 per-cent to 660,474.Electric service for resale was supplied to 18 electric membership corporations, 24 municipalities, and 2 privately owned utilities.
These resale customers used 5.4 billion kilowatt-hours in 1975, 22 percent of total Company sales.Of the total residential units served by CPtkL at year's end, 22.4 percent were all-electric.
Similarly, 23.4 percent of the comrr, ercial and 11.2 percent of the industrial customers had total electric facilities.
Residential.Residential customers totaled 560,954, or 84.9 percent of the Company's total customers, and ac-counted for 31.8 percent of 1975 operating revenues.Average annual coitsumption per customer was 11,094 kilowatt-hours, up from 10,861 in 1974.The average annual residential bill of$347.54 was less than 3 percent of the average family buying income for the Carolinas as reported by'Sales iVlanagement ivfagazine's Survey of Buying Power.Commercial The Company's 94,556 commercial customers represented 14.3 percent of the total retail customers and produced 18.4 percent of the operating revenues.In 1975, average annual usage by commercial cus-tomers was 40.049 kilowatt-hours, an increase of 2,088 kilowatt-hours over 1974.Industrial For the year, CP&L's 3,318 industrial customers used 7.8 billion kilowatt-hours, representing a de-crease from 1974 of 5.3 percent.Industrial sales rep-resented 27.7 percent of the total Company operating revenues.Expenditures announced for new and expanded industries in the service area totaled$269,1 million, substantially below the previous one-year high of$658.9 million established in 1974.It is estimated that 8,444 new job opportunities.
with an annual payroll of$51 million, will be pro-vided by this increased industrial activity.Customer Relations In June, the Company launched"Project Com-municate," an intensive program of customer contact to help explain rising electric costs, counsel custom-ers on efficient use of electricity, and answer other questions about the Company and its operations.
The object of the program, designed as an on-going effort to supplement the Company's regular customer communications activities, is greater public under-standing.Over 30,000 customer-households were contacted during the latter half of the year.Average Price of Electricity Paid by Residential Customers (Twelve Months Ending December 31.1975 and 1974)Cents Per Kilowatt-Hour 1975 1974.8.27'.70 5 44 5.50 5.36 5.06 5.01'.80 4.71 4.02'*.'.56 4.18 4.55, 3.78 4.25 3.93 4.09 3.42 3.89 3.67.-..*~"'.', 3.89.3.07""c 3.88 3.67 3.69 3.06 3.61 3.35 3.59 2.74 Place New York, N.Y.Newark.N.l.Boston.Mass.Philadelphia.
Pa.Hartford.Conn.New Haven.Conn.Pittsburgh.
Pa.Baltimore.
Md.St.Petersburg.
Fla.Washington.
D.C.Richmond.Va.Cleveland:
Ohio Columbia.S.C.Savannah.Ga.Tampa, Fla.Cents Per Kilowatt-Hour 1975'1974 3.53 2.89 3.37 2.63 3.36 2.89 3.25 2 48 3.18 2.86 3.13 2.64 3.04 2.98 3.00 2.61 3.00 2.37 2.97 2.55 2.97 2.44 2.89 2.53 Place Miami.Fla.Fairmont.W.Va.Syracuse.N.Y.Atlanta.Ga.Cincinnati, Ohio lackson.Miss.Charlotte, N.C.Pensacola.
Fla.Roanoke.Va.Birmingham.
Ala.Gulfport.Miss..-".'" (Prices shown are averages, for the systems of companies which serve these cities)
Average Annual Kilowatt-Hour Sales'to Residential Customers Total-Electric Residential Units (Cumulative Total)Energy Sales By Classes within service area (Millions of Kilowatt4Iours)
'1 1,276 11,094~I'123,233...'esidential Commercial Industrial 10 ,205 i 117,305 106,525"'Other Totat 24.057 23,607 cI 23,229~,~9,027 18,861 I It, i.I 7,454~l'l Il ii 6,620 71,879 15,617~~it tt 48,442~0 n 12,140 i.':.t tl 9,707:I ,~'I 1 31,584 p 19,046" I.~t t II P)3).!ih]j 1965'67'69'71'73'75 1965'67)!le')Ill\'i if'69'71'73'75 1965'67'69'71'73'75
r Territory Served A~,C e~~a~~,V P"A h'll sevi e P I r/c-./C~1~$~,.~>1 4 r At'the end of 1975.CP8 L was providing electric service to more than 660,500 customers in an area oF 30,000 square miles-almost half of North Carolina and about one-fourth of South Carolina.Total popu-lation of the territory is estimated to be about 2.8 million.This territory is comparable in size to the combined areas of Connecticut, iVIassachusetts, Rhode Island, New Jersey and iNew Hampshire.
It includes part of the ivfountain and Piedmont regions, but is largely in the Coastal Plains section.Service to customers is provided by more than 4,700 employees through 5 division, 10 district and 40 area offices.
I 1 I I~~~r"'~~Henderson 10 r'~-"'.<-~~*~~~~" Q>>e Raleigh r Sanford Goldsboro u Jacksonville
, te't PP~>I eSouthern Pines 2 el 14 5~Florence 9>>Sy-M~Ž.~<PA'."+P'Itttlmtngten.t~,/g,,~r Sumter C Legend 1.Asheville Electric Plant 2.Blewett Hydroelectric Plant 3.Cape Fear Electric Plant 4.Lee Electric Plant 5.Robinson Electric Plant 6.Sutton Electric Plant 7.Tillery Hydroelectric Plant 8.4Valters Hydroelectric Plant 9.4Veatherspoon Electric Plant 10.Roxboro Electric Plant 11.Brunswick Nuclear Plant 12.Marshall Hydroelectric Plant 13.Harris Nuclear Site 14.Darlington Plant~.CP8tL District Offices
People Directors Named In March, the board of directors elected Charles W.Coker, Jr.and Mrs.Margaret Harper to the board.Mr.Coker, president of Sonoco Products Com-pany, Hartsville, S.C., is a graduate of Princeton Uni-versity and Harvard Business School.He is a director ofiNCNB Corporation, First Federal Savings 8c Loan of Hartsville, the National Association of Manufactur-ers, and serves on the executive committee of the board of the American Paper Institute.
iVIrs.Harper, owner of the Stevens Agency, insur-ance, Southport, N.C., is a graduate of Greensboro College.She is secretary-treasurer of the North Carolina Press Association, a trustee of the University of North Carolina at Chapel Hill, North Carolina Blue Cross and Blue Shield, and a member of the board of governors of the Research Triangle Institute.
She is a past pr'esident of the North Carolina Federation of Women's Clubs and of the North Carolina Council of Women's Organizations.
PPh h+*'giver.Cokcr Management Changes Darrell V.Menscer.vice president.
was named to head a new department of corporate performance analysis.A graduate in electrical engineering from North Carolina State University.
Menscer joined the Company in 1960.He served in various engineering positions until he was named budget director in 1968.He was promoted to manager of the special services department of the engineering, construction, and operating group in 1971 and elected a vice president in 1973.Patrick W.Howe was named manager of.the spe-cial services department succeeding Menscer.A graduate in chemistry from The Citadel, Howe has more than 20 years'xperience in the nuclear energy field.Prior to joining CP8cL in 1971, he was chief of the site, environmental, and radiological safety group in the AEC's division of reactor licensing.
Paul S.Bradshaw was named an assistant trea-surer of the Company.A graduate of Southeastern University, Washington, D.C., Bradshaw joined CP8cL in 1962.He was manager of budget and statistics at the time of his promotion.
Employee Relations The Company ended 1975 with 4,749 employees, substantially the same number as at the end of 1974.During the year, more than 1,500 employees from all levels of the organization participated in 14 differ-ent courses and seminars designed to upgrade job performance.
For the third consecutive year.CP8cL was the safest utility in the Southeastern Electric Exchange, an association of electric companies located in the Southeast.
The Company had a frequency rate of 1.28 lost-time injuries for each million man-hours worked as compared to an average of 4.52 lost-time injuries per million man-hours worked for the 25 members of the exchange.CP8cL also placed first, for the second year in a row, in the Southeastern Electric Exchange standing for vehicle safety with a frequency rate of 5.16 accidents per million miles driven.
Statement of Income For the Years Ended December 31, 1975 and 1974 For the Years Ended December 31, 1975 and 1974 i I" Balance at Beginning of Year.-'et Income Total.'.:: Deduct: Cash dividends declared:$5 preferred stock Serial preferred'tock:
$4.20 series$5.44 series$9.10 series'...
$7.95 series,.$7.72 series.$8.48 series.Preferred stock.A,$7.45 series'~<'-'$2.675 preference stock, series A.~"~<.y,-Common stock (at annual rate of$i>,qf~';...>:K=:.'974 and 1975)Total cash dividends declared-."'~, Capital stock expense Total deductions
~pIBalance at.End of Year~See notes to financial statements.
jp4"."4;~g:r," 1.60 a share in" O perating Revenues-Electric (Notes 5 and 6)...........
~.....Operating Expenses: Fuel for electric generation
.Deferred fossil fuel expense (credit)(Notes 1 and 5)..........
Purchased electric power t'=Other operation expenses.Maintenance
.'epreciation Taxes other than on income...Income tax expense (Note 4)Total operating expenses..Operating Income:...
~...Other Income: Allowance for funds used during construction (Note 7).~.~..Income taxes-credit (Note 4)Other.net Total other income Gross Income Interest Charges: Long-term debt..Other.Total interest charges Net Income.Preferred and Preference Stock Dividend Requirements
.......Earnings for Common Stock.Average Common Shares Outstanding
.Earnings per Common Share'Statement of Retained Earnings 1975$606,329,122 232,722,278 20,650,131 13,114,681 57,035.576 33,685,947 46,648,000
'6436,686 45,169,792 495,463,091 110,866,03'1 59.956,830 19,733,336 1,020,787 809710.953 191,576,984 85,740,402 4,214,861 89,955,263 101.621,72'1 25,751,863
$75,869,858 28,'109.092
$2.70$128,762,726 101,62'1,721 230,384,447 1,186,295 420,000 1,360,000 2,730,009 2,782,525 3,860,000 5,512,000 3,725,000 5,513,534 46,172,859 73,262,222 445,797 73,708,019
$156,676,428 1974$460,977,024 235,842,050 (35,028,046) 14,493,620 46,549,415 28,591,432 35,544,206 40,683,529 16,946,789 383.622,995 77,354,029 54,608,879 16,067,820 775,762 71.452,461 148,806,490 69,877,700 6.658.234 76,535,934 72.270,556 20,672.481
$51.598,075 23.324.111
$2.21$116,063,040 72.270,556
'1 88.333,596
'1,186.295 420,000 1,360,000 2,730.008 2,782,523 3,860,000 5,986,655 3,725.000 37.374.994 59,425.475 145.395 59,570,870
$128,762,726 27
Balance Sheet December 31, 1975 and 1974 ASSETS.Electric Utility Plant: Electric utility plant other than nuclear fuel: In service.Held for future use Construction work in progress.Total.Less accumulated depreciation
.Net Nuclear fuel.Less accumulated amortization
.Net 1975$1,837,332,579 8,705,994 643,068,549 2,489,107,122 296,425,899 2,192,681,223 70,239,100 18,507,102 51,73'1,998 1974$1,364,183.273 7.542.840 826,012.064 2,197,738.177 256,659,461 1,941,076.716 55.117.915 1'l,466,631 43,65'1.284 Electric'utility plant, net 2,244.4'13,221 1,984,730.000 Other Property and Investments, 2,026,358 3,828,783 Current Assets: Cash Temporary cash investments Accounts receivable, net ('1974 includes$14,942,360 of refundable income taxes)........~.~.....Deferred fossil fuel inventory costs (Notes 1 and 5)........Materials and supplies: Fuel.Other Prepayments, etc..Total current assets 9)354,350 13,496,583 31,484,653 14,377,915 60,008,940 18,093,951
'1,472,295 148,288,687 9,517.174 45.619.704 35,028.046 84,244.486 13,434.110
'l,787.436
'89,630.956 Deferred Debits: Unamortized debt expense Other.~Total deferred debits.Total See notes to financial statements.
1,518,038 5,775,927 7,293,965$2,402,022,231 1,253.151 5.624,404 6,877,555$2,'1 85,067.294 rolina Power&Light Company I BILITIES pital Stock and Retained Earnings (Note 2): referred stock reference stock ommon stock.Retained earnings.Total capital stock and retained earnings.1975$288,118,400 47,900,000 565,609,691 156,676,428 1,058,304,519 1974$288,118.400 419,701.904 128,762.726 836,583,030 ng-Term Debt (excluding current maturities):
rincipal amounts (Note 3).ess unamortized discount and premium, net.Long-term debt, net 1,157,234,359 3.980,298 1,'l53,254,061 1.036.9'14,3'1 0 2.819,037 1.034,095,273 rrent Liabilities:
Long-term debt due within one year (iVote 3)otes payable.ccounts payable.ustomers'eposits Taxes accrued.urrent portion of deferred income taxes (Note 4).........nterest accrued Dividends declared.ther Total current liabilities 2,000,000 78,385 28,710,977 3,753,970 9,380,705 3,285,558 20,932,577 25,608,792 2,114,170 95,865,134 131,657,046 59,412.1 83 2,818,650 11,276.899 13.577.543 19.32 1.270 19,240,143 1.823.299 259.127,033 erred Credits: Investment tax credits (Note 1).ustomers'dvances for construction ther , Total deferred credits.erve for Injuries and Damages'l8,787,931 202,420 459,170 19,449,521 794,184 4.514.126 125,873 115.406 4,755,405 724,920 cumulated Deferred Income-Taxes (Note 4)..............
Commitments and Contingencies (Note 5)Total.e notes to financial statements.
74,354,812
$2,402,022,231 49,78'1.633
$2,'1 85.067.294
Statement of Source and Use of Financial Resources, For the Years Ended December 31, 1975 and 1974 1975 1974 r.Source of Financial Resources:
Current resources provided from operations:
Net income Items not requiring (providing) current resources:
Depreciation and amortization
.Noncurrent deferred income taxes, net Investment tax credit adjustments, net Allowance for funds used during construction
..........
Total current resources provided from operations
- Other resources provided:*~Additions to plant accounts representing capitalization of the net cost of funds used during construction............
Proceeds from assignment to lessor of internal combustion turbine generators
.Proceeds from sale and leaseback of nuclear fuel..........
~...Miscellaneous, net.Total resources provided from operations and other.....$101,621)721
$72,270.S56 57,242>327 24,573,179 14,273,805 (59,956,830) 137,754,202 45,391,668 11,187,984 (6,241,299)
(54,608,879) 68,000,030 59,956,830 54,608,879 7,096,477 44,455,470 47,593,386 3,994,354 204,807,509
.218,652,119 Financings:
Sale of: First mortgage bonds.Preferre'd stock.Preference stock Common stock Increase (decrease) in short-term notes payable~less temporary cash investments
~Total resources provided from financings
..TOTAL.120,742,943 47,744,042 145,617,948 (145,075,244) 169,029,689
$373,837,198 150,978,924 64,230,667 3,380,868 103,301,247
<<j 321,891,706
$540,543,825 j Use of Financial Resources:
Gross property additions, excluding nuclear fuel*........Nuclear fuel additions*
Dividends for the year Net increase (decrease) in working capital, excluding temporary cash investments, long-term debt due within one year, and short-term notes payable..~..~...TOTAL.(21,155,614)
$373,837,198 59,954,908 K'540,543,825
...$305,552,826
$382,602,011 17,515,265 39,939,431 71,9241721 58,047,475
'I Increase (decrease) in working capital, excluding temporary cash investments, long-term debt due within one year, and short-term notes payable, by components:
Accounts receivable Deferred fossil fuel inventory costs.Material and supplies (principally fuel).Accounts payable Taxes accrued Current portion of deferred income taxes.Interest and dividends payable Other, net Net increase (decrease) in working capital, excluding temporary cash investments, long-term debt due within one year.and short-term notes payable......~$(14,135,051)
(20,650,131)
(19,575,705) 30,701,206 1,896,194 10,291,985 (7,979,956)
(1,704,156)
$19,868,712 35,028,046 p-69,334,972 (40,310,318)
(7,693,279)
(13,577,543)
F'6,076,738) 3.381,056$(21,155,614)
$59,954,908
- Includes amounts capitalized as allowance for funds used during construction.
See notes to financial'statements.
~~Notes to Financial Statements 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES System of Accounts.The accounting records of the~Company are maintained in accordance with uniform systems of accounts prescribed by the Federal Power Commission and the regulatory commissions of North Carolina and South Carolina.Electric Utility Plant.Electric utility plant is stated at original cost.The cost of additions, including re-placements of units of property and betterments, is I charged to utility plant.The Company includes in 1 R such additions an allowance for funds used during construction (8%for 1975 and 1974).Maintenance l and repairs of property and replacements and renew-als of items determined to be less than units of prop-erty are charged to maintenance expense.The cost of units of property replaced or renewed plus removal'g costs, less salvage, is charged to accumulated depre-g.elation.
Utility plant is subject to the lien of the Com-pany's mortgage.~Allowance for Funds Used During Construction.
In accordance with the uniform systems of accounts , prescribed by regulatory authorities, an allowance for funds used during construction is included in con-struction work in progress and credited to income..recognizing that funds used for construction were provided by borrowings, preferred stock, and com-~~mon equity.This accounting practice results in the inclusion in utility plant in service of amounts con-sidered by regulatory authorities as an appropriate cost for the purpose of establishing rates for utility charges to customers over the service lives of the property.Depreciation and Amortization.
Depreciation of utility plant, other than nuclear fuel.for financial reporting purposes is computed on the straight-line method based on estimated useful lives and charged principally to depreciation expense.Depreciation provisions as a percent of average depreciable prop-<erty other than nuclear fuel approximated 3.0%in-'975 and 2.8%in 1974.Effective as of October 1, 1975 I the Company adopted revised depreciation rates gen-s erally reflectin shorter estimated useful lives for util-:, ity plant.which increased the provision for deprecia-'ion by$2,538,000 in 1975.Amortization of nuclear~~~~fuel charged to fuel expense (1975,$9,190,000; 1974,..:,$8,757,000) is computed on the unit-of-production
".method.~'Revenues.
Customers meters are read and bills are: rendered on a cycle basis.Revenues are recorded when billed, as is the customary practice in the indus-Deferred Fossil Fuel Inventory Costs.In 1974, pur-suant to state regulatory commission orders, and in January 1975, pursuant to Federal Power Commission order, the Company put into effect automatic fossil fuel adjustment clauses to recover increased fuel costs.The provisions of the clauses result in a time lag between the date increased fuel cost is incurred and the date such cost is billed to customers.
To properly match increased fuel costs with the related revenues, the Company defers, except for North Carolina retail operations, increased fuel cost when incurred and expenses it in the month the related revenue is billed.Beginning September 1, 1975 for North Carolina re-tail operations, the fossil fuel adjustment clause was replaced by an"approved fuel charge" adjustment to basic rates (which results in billing increased fuel costs on a current basis)and the Company was au-thorized to recover the deferred fossil fuel inventory costs accumulated at August 31.1975 by a temporary rate surcharge over an approximate twelve-month period, with matching amortization of the deferred costs (see Note 5).Therefore, as a result of deferred fuel cost accounting, operating expenses include a charge of$20,650,131 in 1975 and a credit of$35,028,046 in 1974 and deferred fossil fuel inven-tory costs on the balance sheet decreased$20,650,131 in 1975 and increased$35,028,046 in 1974, represent-ing the normalization of such costs.Related deferred income taxes have been recorded (see Note 4)and are reflected in income tax expense;and the accumulated deferred tax liability is reflected in Current Portion of Deferred Income Taxes on the balance sheet.Income Taxes.Deferred income tax provisions are recorded only to the extent such amounts are cur-rently allowed for rate-making purposes.In com-pliance with regulatory accounting.
income taxes are allocated between Operating Income and Other In-come, principally with respect to interest charges re-lated to construction work in progress.Deferred in-come taxes are provided relating to the deduction for income tax purposes of a coal mining subsidiary's development costs and such taxes are charged to Other Income.See Note 4 with respect to certain other income tax information.
Investment Tax Credits.Investment tax credits generated and utilized after 1971 have been deferred and are being amortized over the service lives of the property;substantially all credits prior to 1972 were deferred for amortization over five-year periods.At December 31, 1975 the Company had generated but not utilized investment tax credits totaling$14,600,000.
Preferred Dividends.
Preferred stock dividends de-clared and charged to retained earnings include amounts applicable to the first quarter of the follow-ing year, except for the Preferred Stock A.$7.45 Series which dividends are wholly applicable to the year in which declared.Retirement Plan.The Company has a non-contributory retirement plan for all regular full-time employees and is funding the costs accrued under the plan.Retirement plan costs for 1975 and 1974 were approximately
$3,526,000 and$2,421,000, respec-tively.In 1975.the Company amended the plan by changing, among other things, vesting provisions to conform with the requirements of the Employee Re-tirement Income Security Act of 1974.the interest assumption from 4'/z%to 5%, and the amortization of unfunded prior servic.cost over a period of twenty years from January 1, 1975 instead of from January 1., 1974.The effect of these changes on periodic net income is not material.At January 1, 1975, the date of the latest actuarial valuation, the unfunded prior ser-vice cost was approximately
$24 million and the ac-tuarially computed value of vested benefits exceeded assets of the plan by approximately
$22 million.Other Policies.At December 31, 1975 the Company had available lines of credit with various banks and maintains account balances in connection with cer-tain of such lines.Other property and investments are stated principally at cost, less accumulated deprecia-tion where applicable, except for the investment in its coal mining subsidiary which is accounted for on the equity basis.Temporary cash investments are stated at cost, approximating market value.Materials and supplies inventories are stated at average cost.The Company maintains an allowance for doubtful ac-counts receivable (1975,$580,237;1974,$427.876).Bond premium, discount and expense are amortized over the life of the related debt.?:l ,~'L 22 2.CAPITAL STOCK Preferred Stock.without par value.cumulative:
$5 (authorized.
300.000 shares;outstanding.
237.259 shares).Serial (authorized.
10.000.000 shares):$4.20 Series (outstanding.
100.000 shares).$5.44 Series (outstanding.
250.000 shares)$9.10 Series (outstanding.
300.000 shares)$7.95 Series (outstanding.
350.000 shares)$7.72 Series (outstanding.
500.000 shares)$8AB Series (outstanding.
650.000 shares)~Preferred Stock A (authorized.
5.000.000 shares)-$7.45 Series (outstanding.
500.000 shares)Total 1975$24.375.900 10.000.000 25.000.000 30,000.000 35,000.000 49.425.000 64.317.500 50.000.000
$288.118AOO 1974$24.375.900 10.000.000 25,000.000 30.000.000 35.000.000 49A25.000 64.317.500 50.000.000
$288.118A00 Preference Stock.without par value.cumulative (authorized.
10.000,000 shares)-$2.675 Series A (outstanding.
2.000.000 shares)S 47.900.000 Common Stock.without par value (authorized.
60.000.000 shares): Outstanding (1975.32.692.791 shares;1974.23.438.844 shares).Subscribed but not issued-19.875 shares......................
Total$565.609.691
$565.609.691
$419.458.687 243.217$419.701.904 Authorized Preference Stock was increased from 2,000.000 to 10,000.000 shares in May 1975.Common stock outstanding increased$146,-151,004 in 1975 and$3.'l37,651 in 1974 from the sale of 9,000,000 shares in public offerings and the sale of 253,947 shares in 1975 and 205,081 shares in 1974 under the Company's Stock Purchase-Savings Prog-ram for Employees.
At December 31, 1975, 711,513 shares of unissued common stock were reserved for issuance under the Program.The preferred stock ac-count increased$64,317.500 in 1974 from the sale of 650,000 shares and the preference stock account in-creased$47,900,000 in 1975 from the sale of 2,000,000 shares of such securities in public offer-ings.The preferred stock is callable.in whole or in part.at redemption prices ranging from$102 to$115 a share plus accumulated dividends.
The Preferred Stock A,$7.45 Series, has a sinking fund requirement, commencing in 1984, to redeem 20,000 shares annu-ally at$100 per share plus accumulated dividends.
In the event of liquidation, the preferred stock is entitled to$100 a share plus accumulated dividends.
The$2.675 Preference Stock Series A is presently callable i n whole or in part at$27.68 per share plus accumu-lated dividends, unless refunding is involved in which case there are substantial limitations on re-demption until April 1, 1980;and in the event of liquidation is entitled to$25 a share plus accumu-II lated dividends'in preference only to the common I stock.T he Company's charter and the first mortgage bond IIindenture as amended contain provisions limiting'payments of cash dividends on common stock under certain circumstances.
At December 31.1975.none of 1 the retained earnings was restricted under these pro-visions.3.LONG-TERiVf DEBT-PRINCIPAL AiVIOUNTS First mortgage bonds: 3t/s/o Series.due 1979....................$
20.100.000 3t/<%Series.due 1979....................
43.930.000 2~/e%Series.due 1981....................
15.000.000 3t/x%Series.due 1982...................
20.000.000 1 1'/o Series.due 1984...................
100.000.000' 4%%Series.due 1988....................
20.000.000 4t/s%Series.due 1990....................
25.000.000 4'/z%Series.due 1991....................
25.000.000 1 4th%Series.due 1994...........:........
30.000.000 g 11%%Series.due 1994....................
50.000.000*'t/s%
Series.due 1996....................
30.000.000 6'/s%Series.due 1997....................
40.000.000 at/s%Series.due 1998....................
40.000.000 i 8%%Series.due 2000....................
40.000.000
'%%Series.due 2000.....................
50.000.000 7%%Series.due 2001....................
65.000.000 7%%Series.due 2001....................
70.000.000 1 7%%Series.due 2002.....................
100.000.000 4.INCOME TAXES 1 Income tax expense is rnmpnsed nf the fnllntving:
Included in Operating Expenses: Provision (credit)for currently payable (refundable) taxes Provision for deferred taxes.net Investment tax credit adiustments.
net (credit).Total charged to operating income.7%%Series.due 2003.....................
at/s%Series.due 2003.9%%Series.due 2004.....................
Total.SLx-year note payable tn a bank.due Iuly 31.1978.at a fluctuating rate'(8.33/o at December 31.1975)related to the bank's prime rate.............
Miscellaneous promissory notes (1974.$234.310).204.359 Total long.ter'm debt.including current maturities
.................
1.159.234.359 Less long-term debt due within one year-11%%Series.due 1994....................
Total long.term debt excluding current maturities at December 31.1975....$1.157.234.359 100.000.000 100.000.000 125.000.000 1.109.030.000 2.000.000$19.452 11 444 14.274 45.170$(1..178)24.766 (6.241)16.947 Issued in 1975"$22.350.000 issued in 1975 The bond'indenture.
as amended.contains re-quirements that additional property be certified or that specified amounts in cash and/or principal amount of bonds be delivered annually to the Trustee as an improvement fund.Current liabilities do not include tne current improvement fund requirements (approximately
$6.700.000 at December 31.1975)since the Company meets such requirements by the certification of additional property.Bonds of the 11i/e%Series.due 1994.shall be re-deemed under sinking fund provisions at$2.000.000 each year commencing on December 1.1976, at the principal amount without premium plus accrued in-terest;Year Fnded December 31.1975 1974 (Amounts in Thousands) 23 Included in Other Incnme: Reduction in currently payable taxes.Provision for deferred taxes.........Total credited to other income Total income tax expense (22.571)2.837 (19.734)$25.436 (16.068)(16,068)$87ii Pmvisinns for net drferrrd inrnme taxes result from timing differenres in the rrrngnitinn nf the following items fnr tax and finanrial reporting,purpnsrs and whirh tax efferts wrre as fnllnws: Excess of accelerated depreciation deductinns over straight.line depreciation otherwise deductible
.Deferred fossil fuel inventory costs.1 Utilization of subsidiary's tax net loss.Taxable gain on sale and leaseback of properties.
Accrual of franchise taxes on books.not deductible until paid Total provisions for deferred taxes.net.$21.245 (9.912)2.837 491 (380)$14.281$14.513 16.814 (3.325)(3.236)$24.766 December 31.1974 in Thousands)
Year Ended 1915 (Amounts$35,112$60.988 (14,820)(28.179)5.706 (26.212)(3.523)(4.022)59 7.120 (6.241)S 879 (2.512)(3.154)(561)11.162 14.274$25,436 later than December 31, 1979.The Company and PM have entered into coal purchase contracts for 80%and 20%, respectively.
of LC's production at prices suffi-cient to meet all of its costs.The adjacent mine is currently expected to cost approximately
$46.6 mil-lion.Rentals.excluding nuclear fuel, charged to income were approximately
$7.400.000 in 1975 and$4,300,000 in 1974.Minimum rental commitments under noncancelable leases (except for nuclear fuel)at December 31.1975 were approximately (in thousands):
'C2'enerators Payable 1916 1977'1978 1979 1980 1981-1985 1986-1990 1991-1995 Remainder Total$6.600 6.200 5.200 4,600 4.500 22,400 22,100 21,300 19.600 Other$2.800 2.400 1,400 800 100 3,400 3,100 2,300 6,300$3.800 3.800 3.800 3,800 3.800 19.000 19,000 19.000'13.300 The Company has entered into agreements with Pickands Mather gc Co..(PM), a firm engaged in own-ing, operating and'anaging mineral properties, to develop two adjacent deep coal mines in Pike County, Kentucky, each capable of producing 1,000,000 tons of coal per year over about 25 years.A subsidiary,"'eslie Coal Mining Company (LC), has been formed,;owned 80%by the Company and 20%by PM.to-'construct and develop one of the mines.Significant
'*aspects of LC's financial position are summarized as follows (in thousands):
December 31, 1975 1974=Total assets$17.744$2.956 Notes a able to bank Rentals under a nuclear fuel lease totaled$5,400,000 in 1975 and$300,000 in 1974 of which$3,500,000 for 1975 and none for 1974 was charged to income.Such rentals include a component based on energy pro-duced and another computed on the lessor's unamor-tized acquisition cost ($47,100,000 at December 31, 1975).Rental payments for nuclear fuel presently under lease are estimated to approximate
$11,000,000 in 1976 and 1977 and declining each year thereafter through 1980.Under the terms of the leases for the internal combustion turbine (ICT)generators and the nuclear fuel, the Company, under certain cir-cumstances, is contingently liable to purchase the properties from the lessors.The Company is respon-sible for expenses in connection with most of the p y (guaranteed by the Company)............
$16.200 The Company has guaranteed the obligations of LC under the terms of bank loan agreements and a lease financing arrangement which can provide up to$49.7~million in funds for the LC mine (currently estimatedmaximum capital cost is$50 million).The Company ,.has further agreed to advance any other funds re-.-,quired by LC and to cause LC to complete the mine not'4.INCOME TAXES (continued)
'-.'.-;,".'Iteconcfliation of an amount.computed by applying the federal income tax rate of 484o to pre.tax~,: income (net income plus income tax expense).to total income tax expense follows:..Amount derived by multiplying pre-tax income by 48'yo.--'dd (deduct):~-~,~=.,.';.Investment tax credits (utilized) eliminated Other specific reconciling items multiplied by 48%%%d::.-,,'-.',~'Aliowancc for funds used during construction.
.."';-.-,-,";,-~.'Differences between book and tax property depreciation and amortization
- %%d'.,-'.'-,"',-.',,,"t"P".;"', for which deferred taxes have not been provided.-Taxes and fringe benefit costs capitalized
,'~~%","="'tate income taxes and other differences.
net Provisions for current and deferred taxes........
-".." i=-:,",',-..Investment tax credit adiustments.
net" Total income tax expense.~',%%d...,,'..'5.COMMITMENTSAN DCONTINGENCIES
~~~It is estimated the Company's construction pro-.gram for 1976 through 1978.excluding nuclear fuel, will cost approximately
$826 million.At December 31, 1975, firm commitments for construction aggre-.gated approximately
$436 million plus approxi-mately$306 million for initial and replacement nu-clear fuel.In addition.the Company has a contract 4"with the Energy Research and Development Ad-ministration for nuclear fuel enrichment require-ments through June 30, 2002, which is cancelable without penalty upon five years written notice.Pay-r , ments for enrichment services are anticipated to ap-,.proximate$110.million during the next five years..Many contracts include escalation provisions.
leased properties,'including insurance, taxes and maintenance.
E lectric utility plant at December 31, 1975 includes approximately
$15 million representing cost less ac-cumulated depreciation of four hydroelectric projects licensed by the Federal Power Commission (FPC), j>which licenses expire in 1976, 1993, and 2008.Upon or after expiration of each license.the United States may take over the project, or the FPC may issue a new license either to the Compan'y or a new licensee.In the event of a takeover or licensing to another licensee.the Company would be paid its"net investment" in the project.not to exceed fair value, plus severance dsmagas, if.any.No provision for amortization ra-serves as required for the determination of"net in-vestment" has been recorded as such amounts.if any.are considered immaterial.
In 1973, the Company ,, applied for a new 50-year license for the Walters Hy-droelectric Project which origina!license expires in November 1976.A competing application has been I filed by a group of rural electric cooperatives.
The Company expects that its license application will be granted..The Company is a member of iiiuclear Mutual Limited, established to provide insurance coverage'",.against property damage to members'uclear
generating facilities.
The Company would be subject".~to a maximum assessment of about$19 million in the":.-, event of losses.~..In 1972 the Company committed a total of'3,450,000 for research concerning development of': the Liquid Metal Fast Breeder Reactor payable in ten" equal annual installments through 1981.There are certain claims pending against the Com-,:!pany;in the opinion of.the Company, liabilities.
if~>"'ny, arising from these claims would not have a mate-, rial effect on the financial position or results of opera-: tions of the Company.'.-.', Federal income tax returns after 1973 have not been',.examined.The decision of the North Carolina Court of Ap-':<peals affirming the order, dated December 1974, of k;the North Carolina Utilities Commission (NCUC)'r~g'with respect to the Company's automatic fossil fuel.'".>adjustment clause applicable to North Carolina retail j ys;operations has been appealed to the North Carolina;@Supreme Court by the Attorney General of North+jCarolina.
The Company recorded revenues of:.~$71,101,000 in 1975 and$60,81'1,000 in 1974 pur-'<Qsuant to such automatic fossil fuel adjustment clause.~%The resolution of the matter'is pending.In the opin->i>~~~,'ra ion of the Company the validity of the fossil fuel adjustment clause will be upheld.On February 20, 1976 the NCUC approved the Company's application for a permanent increase in rates applicable to North Carolina retail operations, and also approved$14.412,000 of related interim-increase revenues billed in 1975.Operating revenues for the year ended December 31, 1975 include$53,793.000 (including
$30,754,000 under provisions of a fossil fuel adjustment clause'pplicable to wholesale customers) subject to possi-ble refund to the extent not finally allowed by pend-ing rate proceedings.
Included in the balance sheet is deferred fossil fuel inventory costs of$3,790,000 which is subject to FPC review and approval which may necessitate adjustments if such review so re-quires.The Attorney General of North Carolina has ap-pealed the NCUC order of August 27, 1975 which authorized the Company, effective September 1, 1975.to replace its automatic fossil fuel adjustment clause with a corresponding increase in basic rates, and to recover through revenues over approximately twelve months deferred fossil fuel costs totaling$12.367,000 at August 31, 1975.Accordingly, the Company.from September 1 through December 31, 1975, has recorded revenues of$30.135,000, includ-ing$4,425.000 applicable to recovery of the previ-ously unbilled deferred fossil fuel costs.Although, upon motion of the Attorney General, the NCUC has reconsidered its order and determined that thi;Attor-ney General's exceptions were without merit, the ul-timate outcome of this matter is uncertain pending final judicial determination.
6.RATE INCREASES Operating revenues include amounts (1975,$252,996,000; 1974,$110 486.000)attributable to au-thorized rate increases placed in effect during 1975 and 1974 (see Note 5).7.PROPOSED ACCOUNTING RULES In May 1975 the FPC published for comment cer-tain proposed revisions in its uniform system of ac-counts which would provide for a formula establish-ing a ceiling on AFC (allowance for funds used during construction) rates and the separate reporting in the statement of income of the debt and equity portions of AFC.The ultimate effects, if any.on the Company's financial position and results of operations are not presently determinable pending definitive action on the proposal.25 Auditors'pinion To the Board of Directors and Shareholders of Carolina Power 8c Light Company: We have examined the balance sheet of Carolina Power 8c Light Company as of December 31~1975 and 1974.and the related statements of income, retained earnings, and source and use of financial resources for the years then ended.Our examination was made in accordance with generally acceoted auditing standards and, accordingly.
included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
As discussed in the next to last paragraph of Note 5 to financial statements.
operating revenues for 1975 include$53,793.000 and the balance sheet includes deferred fossil fuel inventory costs of$3,790.000, which amounts are subject to possible refund or adjustment to the extent not finally allowed in pending rate proceedings.
26 As discussed in the last paragraph of Note 5 to financial statements.
the Attorney General of North Carolina has appealed the North Carolina Utilities Commission order of August 27.1975.under which the Company has recorded revenues of$30.135,000 from September 1 through December 31, 1975 and has unrecovered deferred fossil fuel inventory costs of$7,942,000 at December 31.1975.The ultimate outcome of this matter is uncertain pending final judicial determination.
In our opinion.subject to the effect.if any.of the final determination of the uncertainties described in the preceding two paragraphs, the financial statements referred to above present fairly the financial position of the Company at December 31, 1975 and 1974.and the results of its operations and the source and use of its financial resources for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis.Raleigh.North Carolina February 20.1976 Directors At fanuary 1.1976 Officers At January 1, 1976 Year shown in parenthesis indicates beginning I of period of service as a director Daniel D.Cameron.Sr., President.
Atlantic Telecast-ing Corporation,)Nt)mtngton.
N.C.(1970)Felton J.Capel, President.
Century Associates of North Carolina, Southern Pines.N.C.(1972)Charles W.Coker, Jr..President.
Sonoco Products Company, Hartsville, S.C.(1975)E.Hersey Evans, Farmer.Laurinburg.
N C..(4949)Margaret T.Harper.Owner.Stevens Agency, South-port.N.C.(1975)Shearon Harris, Chairman!Presideiit of the Company.Raleigh, N.C.(1961)L.H.Harvin, Jr., President.
Rose's Stores.Inc..Hen-derson, N.C.(1958)Karl G.Hudson, fr., Executive Vice President and General Manager.Hudson-Belk Company.Raleigh, N.C.(1967)J.A.Jones, Executive Vice President of the Company.Raleigh, N.C, (1971)l Edward G.Lilly, fr..Senior Vice President of the Company.Raleigh.N.C.(1971)Sherivood H.Smith.fr., Executive Vice President of the Company.Raleigh.N.C.(1971)Shearon Harris President J.A.Jones Executive Vice President (Group Executive)
Sherwood H.'Smith, Jr.Executive Vice President (Group Executive)
Edward G.Lilly, Jr.Senior Vice President (Group Executive)
W.J.Ridout, Jr.Senior Vice President (Group Executive)
William E.Graham, Jr.Vice President and General Counsel Samuel Behrends.Jr.Vice President E.M.Geddie Vice President William B.Kincaid Vice President M.A.McDuffie Vice President Darrell V.Menscer Vice President Albert L.Morris, fr, Vice President J.R.Riley Vice President R.S.Talton Vice President Edwin E.Utley'Vice President J.L.Lancaster.
Jr.Secretary Robert M.Williams Assistant Secretary James S.Currie Treasurer J.R.Powell Controller Paul S.Bradshaw Assistant Treasurer C.D.Mann Assistant Treasurer 27 Horace L.Tilghman.Jr..Real Estate and Investments.
Marion.S.C.(1961)fohn B.Veach.President.
Veach-Iviay-Wilson.
Inc..Asheville.
N.C.(1958)John F.Watlington, fr..Chairman of the Board.Wachovia Bank Zc Trust Company.N.A..Winston-Salem.N.C.(1970)Transfer Agents and Registrars For Common Stock and Preference Stock: Wachovia Bank 8g Trust Company.N.A..Winston-Salem.
N.C.Bankers Trust Company.New York.N.Y.For Preferred Stock: Wachovia Bank 8c Trust Company, iN.A..Winston-Salem.
N.C.
Statistical Review (Dollars in Thousands)
Balance Sheet Data (End of'eriod):
Total Utility Plant other than Nuclear Fuel Accumulated Depreciation
.............
get Utility Plant other than Nuclear Fuel.=Capitalization Common Stock and Retained Earnings..Preferred Stock.Preference Stock.First Mortgage Bonds.Net'...........
~'ther Long-Term Debt.................
Total Ratio of Accumulated Depreciation to Utility Plant in Service................
Percent of Total Capitalization Common Stock and Retained Farnings..Preferred Stock Preference Stock.First Mortgage Bonds.Neti............
Other Long-Term Debt.................
Total.Ratio Bonds to Not Utility Plant other than I4uclear Fuel...............
1975 S2A89.107 29f>.426$2.192,681$722.287 288,118 47.900 1.105.050 , 50.204$2.213.559 ohio'1 6.1 32.6 13.0 2.2 2.3 100.0'Yo 50.4 1974 2.197.738 256.659 1,941.079 548.465 288.118 983.861 50.234 1.810.678 18.8 29.3 15A 100.0 50.7'1 973 1,872.859 227.fi45 1.645.214 531,297 223,801 832,548 50.253 1.fi37.899 17.7 32.4 13.7 50.8 3.1 100.0 50.6 1972 1.524,238 200.190 1.324.048 447.609 173,801 632,497 50.110 1.304.017 18.4 34.3'I 3.3 48.5 3.9 100.0 47.8 1971 1.212,822 178.096 1,034.726 299,852 124,376 533.003 123 957.354 18.9 31.3 13.0 55.7 100.0 51.5 1970 981.571 161,821 819.744 260,154 89,376 398.427 134 748.091 20.9 34.8 12.0 53.2 100.0 48.6 1965 530,839 101.828 429.011 156,524 34,376 199,4 4fi 1.280 391.626 21.2 40.0 8,8 S0.9.3 100.0 46.5 28 Results of Operations Operating Revenues.....................
Operating Expenses Fuel for Generation of Power...........
Deferred Fossil Fuel Expense (Credit)...Purchased Power.......
Other Operation Expense Maintenance
.Depreciation
.Taxes-Other.Taxes-Income.Total Operating Expenses......:.....
Operating Income.Other Income Allowance for Funds Used During Construction Income Taxes-Credit.................
Other Income (Deductions)
-Net.......Other Income.Gross Income Interest Charges Bond Interest Other Interest Charges.................
Total interest Charges...............'et Income Preferred Stock Dividend Requirements
.Earnings for Common Stock,............
Dividends Declared on Common Stock..Earnings Invested in the Business........Earnings Per Share-Weighted Average...Dividends Paid Per Common Share.......Payout Percent Shares Common Stock Outstanding (000's)Year-End Weighted average during year..........
Times Earned Bond Interest-Before Income Taxes....-After Income Taxes.....Preferred Dividend Requirements.......
Fixed Charges'.'Includes current maturities of long-term deb%or purposes of this ratio.earnings represent plus an imputed interest factor portion of re$606.329 460.977 341.206 307.136 255.643 204.846 122.003 232,722 20.650 13.115 57,036 33,686 46,648 46A36 45.170 235,842 (35.028)14A94 46.549 28.591 35,544 40.684 16.947 106.191 88.549 84.749 69.014 23,677 7.847 4'1.910 29.749 31.845 28.70(i 21.268 11.537 32.979 25.624 27.280 24.021 26.378 10.422 28.510 23.098 22,820 21.400 14.328 9.799 23,765 19.849 19.476 19.053 8.289 6.050 16,971 8,282 11,280 10.962 17.119 495.463 383.623 2fi7.516-236.368 205.327 169.245 94.341 1'10.866 77.3 4 73.690 70.768 50.316 35.601 27.662 14.708'1 0.505 3.532 2.709 hhh~33 54,609'1 6.068 77f)38.093 10,477 393 59.957 19.734 1.020 24,759 6.666 49 1.628 266 282 2.176 13.181 18.757 80.711 31A74 48.963 71A53 29.838 69.073 48.782'1 91.577 81.108 8.847 89.955 101.622 25.752 75.870 46.173 122.653 148.807 102.242 19.601 4.356 27.895 3.704 37.782 3.931 45.653 11.001 63.676 12.860 7.706 175 7.881 23.957 41.713 31.599 56.654 76.536 21.957 1.606 24.825 4.699 60.529 9.612 37.474 8.371 12.271 20.672 65.999 13.011 20,351 13A36 29,103 22.122 20,126 19.013 50.917 27.174 52.982 32.691 51.599 37.375 1.113 6.915 20.29't 23.743$29.697 14.224 6.981$2.70 S 160 59.3 1.80 1.16 64 A 2.58 1.54 60.0 2.21 1.60 72A 2.86 1.97 1.475 1.46 51.6 74.1 1.56 1A6 93.6 32.693 28,109 23.439 23.324 23.234 20,554 20.'1 25 17,814 15.555 14.776 13,986 12.934 11.297 11.289 6.06 3.87 13.67 5.77 2.68 2.36-3.95 2.27 3.23 2.71 6.30 2.90 2.92 2.69 5.07 2.34 2.35 2.34 3.50 1.92 2.77 2.49 5.28 2.25 2.86 2A8 4.48 2.50 t.net income plus income taxes and fixed charges;fixed charges represent interest charges ntals.
Revenues (Thousands)
Residential Commercial
.Industrial
-Textile'....................
Industrial
-Other.Government and Municipal..............
Sales for Resale Total Electricity Sales Within Service Area Nonterritorial Electricity Sales...........
Miscellaneous Revenues.................
Total Operating Revenues............
Cents L oad Data Electric Energy Sales (Millions):
Residential
............Kwh Commercial
.Industrial Other Total Energy Sales Within Service Area Nonterritorial
.Total Electric Energy Sales...........
~Company Uses, Losses and Unaccounted For.Total Energy Requirements
..........Kwh
'lectric Energy Supply (Millions):
Generated-Steam-Fossil.........Kwh Generated-Steam-Nuclear...........
.Generated-Hydro.....................
Generated-Other Fuel................
Purchased and interchange
-Net.......Total Energy Supply............Kwh Peak Demand of Firm Load (000's): Within Service Area...............KtV Nonterritorial
.Total Peak Demand..............KtV Total Capabilitv at December 31 (000's):+1 Fossil Fuel Plants..................KtV
" Nuclear Plants.......................
Hydro Plants.:, Purchased.Total Capability'.................
'Miscellaneous
+Customers at Year End'esidential
..,'y Other.Total.Average Revenue Per KWH Restdentlal
......................
'ommercial.
Industrial
.Total Energy Sales tVithin Service Area.Residential Average Annual Energy Use.......Kwh Average Annual Bill...................
.Steam Electric Generating Plant Fossil Fuel;i..;)Average Annual Heat Rate (BTU Per Net KtVH).................
Average Cost Per Million BTU....Cents , Average Cost Per Million BTU-All Fuels.*.'.i Annual Load Factor, Service Area Load...'r 1975 S 192.734 111.602 70.225 97.573 21.037 99.990 593,161 7,485 5.683 S 606.329 6.152 3.798 7.833 6.274 24,057 61 24.118 1.700 25.818 18.374 5.591 947 31 875 25.818 5.060 38 5.098 5.142 1.490 212 228 7.072 580.954 99.574 660.528 3.13 2.94 2.14 2A7 11.094 S 347.54 9,951 119.0 94.6 oj~58 1 1974 156.134 88.420 S6.661 78.649'I 6.034 46.015 441,913 13A99 5.565 460.977 5.917 3,576 8.273 5.84'1 23,607 4fi9 24,076'1.556 25.632 18,603 4,813 921 215 1.080 25.632 4.771 143 5.014 700 212 280 6.206 550,128 98.179 648.307 2.64 2A7 1.64 1.87 10.861 286.60 10.090 116.7 96,6 60.2 1973 117,559 65.647 36.689 47,677 1'1.632 43.827 323,031 13,608 4.567 341.206 5,937 3.628 7.885 5.779 23,22!J 853 24.082 1.501 25.583 19,875 3,764 891'1 13 940 25.583 4,711 212 4.923 4A53 700 212 280 5.645 535.607 96.844 632A51 1.98 1.81 1.07 1.39 11,276 223.29 9,739 50.0 44.6 59.9 1972 103,254 58.246 33A38 41.161 10,827 35.396 282,322 21,040 3.774 307.136 5,208 3,202 7,037 S.070 20.517 1.584 22,101 1.fi71 23.772 16.605 4.828 882 210 1.247 23.772 4.119 51fi 4.635 3,833 100 212 265 5.010 S15.041 95.020 610.061 1.98 1.82 1.06 1.38 10,293 204.05 9.946 45.1 39.6 61.3 1971 8!J.7'1 1 49,223 26.725 34.096 9.685 31.643 241,083 11.967 2.593 255.643 4.974 2.945 6.232 4.710 18,8fil 796 19.657 1.307 20,!J64 16,135 2,414 849 257 1.309 20.!J64 3,625 170 3.795 3.482 100 211 245 4.638 495.528 90.561 586.089 1.80 1.67.98 1.28 10,205 184.08 9.832 48.0 63.5 1970 75,990 40,981 21.174 28,889 8,573 25.794 201.401 1,225 2.220 20 i.846 4.634 2,693 5,623 4.352 17.302 246 17.548 1.248 18.7!J6 16.311 3 623 315 1.544 18.796 3A84 3A84 3,040 211 378 3.629 478.914 86.511 565 A25 1.64 1.52.89 1.16 9,794 160.62 9.785 41.2 42.1 60.8 1965 47,985 23.888 11.909 15,385 7,292 14.376 120,835 1.168 122.003 2.708 1A62 3,030 2.507 9,707 9,707 866 10.573 8,978 742 853 10.573 1.931 1.931 1,632 211 334 2.177 415.396 70.911 486.307 1.77 1.63.90 1.24 6.620 117.28 9,170 27.0 27.0 62.5'ncludes yarn mills, weaving or cloth mills.finishing plants (bleaching.
shrinking, I s'hosiery mills.!5~'Company now has 821,000 Kw.under construction for service in1977.~tL+'g!!r 1 4,$, v~II S,)~g)'$'Ejg,!" dyeing and printing).
knitting mills, and
Harris Exhibit No.2 i.)PRODUCTION PLANT Pl>tch444 L4ad fot P14acs Coascruet.
Unit No.2 Srunsvick-N, 821 NH Construct Vnit No.1 Stunevick Nr 821 NV>>1977 r.Coascrucc Vale No.4-Roxboro Fo 120 W~1980 Coascruec Vair Ho.1-Maya F, 720 NM>>1983 Construct Vait No.2-Mayo F, 720 NM, 1985 Consctucc Unic No.1-Harris He 900 NHr 19d4 Coascruct Vale No.2-Rattle H, 900 NM, 1986 Construct Uait No.4 Harris-N, 900 NH, 198$I g Coasttucc Qaic No.3-Rertis-N.900 NM, 1990 Coastruct Unit No.1-5R Hr 11SO Ne 1989 Coasctucc Uaic No.I-51 Ne 1150'We 1991 Construct Undesignated Uait-F, 11SO NM>>1993.Air 6 Hater Duality Coactol Devices Additions 4 Rapl4Ceaeats 4C I Ceaerariag Plants-Systea TOTAL PRODUCTION PLANT TRANSMI SS ION PIANT Construction Linear Nev and Rebuilt Coascruct-Subscatioasr Nev aad Addiciona Buildings, Diepecchiag 6 Related Facilities Additions 4 Repiaceaeats-Liaes 4 Substatioas TOTAL TRANSMISSION PLANT DISTRISUTION PLANT Conecruction Subecacioas and Rslaced Lines Coascructioa Specific 4 Miscellaneous Disctibucion Lines Discributioa Reveaw Extensions and Niaor Line Uotk Putehaae Line Transforaers 4ad Raga>lscots Purchase Haters 4 Metering Eatui pe>eat Purchase Foie Top Raclosets Iascall Capacicors oa Liae aad ia Subecacioas Right~I-Vay CIaiaa 4 5<<ccieaeacs Revenw-Producing Subecacion-Conacructioa 4 Related Uotk TOTAL DISTRIBUTION PLANT CENTRAL FIANT Coax cruet Suildings, Vatehouses, ecc.Coeaunicacioas 6 Dispatching Facilicies Office Furniture 4 Fixtures Fe>rchaee Autos 4 Truck4 Add i clone 4 Replaceaeacs TOTAL CENERAL PLANT TOTAL CONSTRUCTION CUMULATIVE TOTAL CAROLINA POVER 4 LICHT C>HU'ANT PRELIMINART CONSTRUCTION PROCRAH BASED OM 1911 CONSTRUCTIOM SUDCET (Thousands ot Dollars)~77~78 1979 1980,~198 1982 1983 1984~185~86 10'fest Tot41 5>292 1>>043 l>312 2>>461 20>847 1>061 II>>>078 Sd>>457 3>>719 5~484 527 2,172 l>>024 149 1,096 149 199 440 32>>014 7,047$8,086 LS,SZS 85>633 150>>2$1 138>406 3>163 4>75d 5$>>76$'12>>296 106>>520 Sl>788 73>$42 Ud>>458 ill>>228 255>>336 165>022 1$6>>972 141~710 37>910 1,000 13>379 1 e 000 11>>Ddd 10>213 22>>3SS 91>S9d 4$5 elOS"350,311 1,170,478 17,201 17,906 36>524 12>>747 6>>671 12>906 2 472 7,343 2>>S22 2>>706 23>>848 20,384~16 23l 9 253 29>218 11,$67 d>>874 12>>823 3,0$6 36,447 22,768 11,S10 26,440 6,779 3 500 74>>SS9 6 29,726 11.583 Sf>>43d 11,618 ZO 3 500 92>>033 138>>371 101>>330 71>>482 155>>883 180>>153 ld>>683 134,411 22>177 619>>833 123>088 lid>>649 20>>637 46>>886 115>>569 149>>793 193>>235 575>>464 52,400 136,276 194,798 272,432 370,114 1.130,53d 23.663 4$,146 42e017 118>>150 168>>968 424~425 19>779 19,779 93,763 6 566 6 6aa 6 696 6 SOO~Q, 232>>889 270>S81 397>>$12 5S1~483 546>>069 667 841 752>470 719>S92 772>>248 905>>161$>>816>>246 13,631 19,129 6 423 4,774 1>>72$686 I OS3 I 235 16>>$74 12>724 I 304 29,200 14,213 328 I 47$59>>613 9>476 375 1 676 42,980 l8,827 I 902 27,004 43,493 28>941 7,385 2 161 2 456 6d>>255 33>>680 353'59 26,222 2 79$4S>>494 204>>479 736 6>261 3 1$2 19 222 21,815 2$,824 31,190 45,219 71.140 94,131 58,596 53,894 91,914 83,092 5$3,821 Il>366 1>248 1>>440 17>063 lde 380 6>500 l>>000 17r319 14>>380 I>>540 1,650 19>>100 ZieIZD 8,000 9,000 14>660 1,770 22,640 10,500 1,900 24>>270 12,000 15,921 2,030 25>920 14>000 18,296 2>170 27,680 16,000 21>>02d 24>165 157e123 2,310 29>420 18,000 2'50 1$>>$08 Slr 240 237>433 20>>500 121e$00 3,223 150 763 S,850 170 210 4>000 195 4,f90 220 974 1,120 220 230 5'60 250 1,28$240 6,030 6,d90 290 330 19482 250 1,705 260 1,$70 380 1,961 210 8,9fO 430 2,256 10,180 490 2,595 280290 60,843 2'05 14>991 2,450~I 250 I 438 I 654 I 903 2 189 2 518 2 896 3 331 3 831 4 407 ZS 417 37,132 44,701 53,602 54,213 58,791 62,595 69,952 77,958 86,503.96,317 641,770 1>>724 4>>792 500 1>>250 500 f00$00 11,266 2,135 1.552 2, 779 3 392 3,509',426 3,820 3,43f 3'34 4Z1 440 468 49$529 1,910 l,ddf 2,045 2 326 2'38 499 528 Sll 614 672 4>>S19 562 2'97 730$>>191 5'63 598 , 634 3>>007 3~218 785 850 6>>SSO 42'82 672 6,374 3'26 26>>489 965'556 11, 5 82 11,131 6>>777 do154 7>>373 8~273 9>308 10>>081 11>>225 12~S6S 96~469 304,41$352,037 489,381 659,069 6$3,379 BS2,846 890~S26 861,82S 967,890 1,097,135 7,138,3C6 304,418 656,45S 1,14S,836 1,804,905 2~488,284 S,SZ1,130 4 211,456 5,073,2SL 6,041,171 7,138,306 ,~
ROBERT R.NATHAN ASSOCIATES, INC.1200 EIGHTEENTH STREET, N.W., WASHINGTON, D.C.20036 PHONE 202/833-2200 TELEX: 248482 CABLE~NATECON EXHIBIT REFERRED TO IN TESTIMONY OF ROBERT R.NATHAN Carolina Power&Light Company November 30, 1976 I I Carolina Power and Light List of Charts and Tables Indexes of Electric Power Sales (in Kwh), U.S.and CP&L-North Carolina, Annually, 1960-75, and Quarterly, 1972-76 Indexes for the U.S.of: Electric Power Sales (in Kwh), Real GNP, Real Per Capita Personal Income, In-dustrial Production-Total Manufacturing, and Non-agricultural Employment, Annually, 1960-75 Indexes of: Electric Power Sales (in Kwh)by CPGL-North Carolina, Real Per Capita Personal Income-North Carolina, Industrial Production-Textile Mill Products, and Nonagricultural Employment-N.C., Annually, 1960-75 Indexes of Output Per Hour of All Persons, Labor Com-pensation Per Hour and Unit Labor Costs in the Private Business Sector, Annually, 1960-75, and Quarterly, 1972-76 Gross National Product, Annually, 1960-75,.and Quarterly, 1972-76 Actual GNP, Potential GNP, and Percent Deviation of Actual GNP from Potential GNP, Quarterly, 1952-76 Con"umer Price Index, All Items, Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates, 1960-76 Consumer Price Index-All Items and Food, Monthly Percent Changes, Averaged Over 3 Months, Seasonally
'Adjusted Annual Rates, 1972-76 Consumer Price Index--All Items, Commodities Less Food, and Services, Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjust d Annual Rates, 1972-76 Wholesale Price Index--All Commodit'ies; Industrial Commodities; and Farm Products, Processed Foods and Feeds;Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates, 1972-76 Coverage of Cost-of-Living Escalator Provisions in Major Union Contracts, 1960-76 12.Indexes of Consumer Prices and Moody's Average Corporate Bond Yields, Annually, 1960-75, and Monthly, 1972-76 13.Interest Costs on Long-term Debt, CPGL, Annually, 1960-75 14.New Corporate Security Issues: Gross Proceeds by Type of Issue, Annually, 1971-,75, and Quarterly at Annual Rates, 1974-76 15.16.Indexes of Consumer Prices, Rate of Return on Year-end Common Equity Capital of CPGL, and Average Price of CPSL Common Stock, Annually, 1960-75, and June 1976 Relationship of.Year-end Market Price to Year-end Book Value, CPGL'ommon Stock, Annually, 1960-75, and 12 Months Ending June 1976 17.Indexes of Rates of Return on Year-end Common Equity and of Common Stock Market Pr'ices Per Share: Moody's 24 Public Utilities and CPGL, Annually, 1960-75 18-Rate of Return on Year-end Common Equity and Interest Cost of New Long-term Debt, CPSL, Annually, 1960-75, and 12 Months Ending June 1976 19.Yields on Grade A Utility Bonds Compared with Rates of Return on Year-end Common Equity of Moody,'s 24 Public Utility Companies and of CPGL, Annually, 1960-75 20.'rends in Common Stock Prices: Industrials, Public Utilities, and CPGL, Annually, 1960-75, and Monthly, 1972-76 21.Indexes (Deflated by the Consumer'Price Index)of Indus-trials, Utilities, and CP&L Common Stock Prices, Annually, 1960-75, and Monthly, 1972-76 22.U.S.Investor-owned Electric Utility Generating Capacity: Estimated Investment Costs per Kilowatt, Annually, 1960-75 I
CHART I, INDEXES OF ELECTRIC POWER SALES (IN KWH)I U, S, AND CP5L-NORTH.
CAROLINAr ANNUALLYr 1960-7 5r AND QUARTERLYr 1972-76 INDEX (1960=100) 550 550 500 500 450 400 450 400 I I I I I I I I 350 North Carolina/CP8L 350 North Carolina/CP8L 300 300 250 250 200 200 U.S.150 U.S.150 100.1 00 1960 61 62 63=64 65 66 67 68 69 70 71 72 73 74 75 ANNUALLY SOURCE: TABLE 1, 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 1972 1973 1974 1975 1976 QUARTER Y I
RRN Table 1 page 1 of 2 Table l.Indexes of Electric Power Sales (in, Kwh), U.S.North Carolina/CP&L, Annually, 1960-75 and Quarterly, 1972-76 and Electric power sales Year and quarter U.S.total (in mil.of Kwh)Index (1960=100)
N.C./CPGL (in mil.'1960=100) of Kwh)Annual 1 1960...1961...1962...1963...1964...1965...1966...1967...1968'.1969...1970...1971...1972...1973...1974...197 683 il99 720,728 776,088 830,811 890,356 953,414 1,038,982 1,'107,023 1,202,321 1,307,178 1,391,359 1,466,441 1,577,714",703,203 1,700,769 1,733,024 100.0 105.5 113.6 121.6 130.3 139.6 152.,1 162.0 176.0 191.3 203'.7 214.6 230.9 249.3 248.9 253.7 3,554.2 3,866.5 4,257.8 4,677.8 5,796.3 6,582.5 7,364.8 8,100.6 9,263.3 10,275.4 11,153.1 12,222.3 13,255.4 14,948.0 15,198.4 15,220.0 100.0 108.8 119.8 131.6 163.1 182.4 207.2 227.9 260.6 289.1 313.8 343.9 373.0 420.6 427.6 428.0 1972: I~~~a I g a~~III..IV...1973: I~~~~II...III..IV...1974: I.IX...III..IV..1975: I 0~II....XII..IV...~a a~~~383,153 376,150 417,301 401,111 419,458 402,725 458,535 422,485 416,657 408,251 455,606 420,249 429, 703 411,600 462,285 429,463 224.3-220'.2-244.3-234.8-245..6-235.8-/268.5-/247.4-243.9-239.0-/266.7-246.0-'/251.6-241.0-270.7-251..4-3,279.8 3,125.0 3,487.3 3,363.3 3,735.0 3,473.2 4,050.9 3,688.'9 3,775.9 3,607.6 4,054.3 3,760;7 3,729.4 3,487.5 4,155.3 3,847.9 369.1-/351.7-392.5-/378.5-420.3-/a/390.9-/'455.9-/415.2-425 0 406.0-/456.3-/423.2-419.7-/392.5-/467.6-/433.1-Continued--
Table 1 (continued)
RRN Table 1 page 2 of 2 Electric power sal'es Year and quarter U.S.total (in mil.of Kwh)Xndex (1960=100)
N.C./CP&L (in mil.o f Kwh)Index (1960=100) 1976:~~~~~~~~0~~~~~I l o~~~~~t~~~~~~~I 458,869 434,038 268.7-4,237.4 254 1'I740 0 476.9-/420.9-a/Quarterly electric power sales are first converted into annual rates, indexes are then=derived by dividing"annual rate of each quarter by 1960 annual sales.Source: U.S.Department of Commerce, BEA, Surve of Current Business, monthly, and Carolina Power and Light Company.
CHART 2, INDEXES FOR THE UNITED STATES OF'LECTRIC PONER SALES (IN KNH)p REAL GNPp REAL PER CAPITA PERSONAL INCOME INDUSTRIAL PRODUCTION-TOTAL MANUFACTURING AND NONAGRICULTURAL ENPLOYHENT, ANNUALLY, 1960-75 INDEX (1960=100) 260 240 Electric power sales 220 200 FRB Industrial Production, total manufacturing 180 160 Real GNP 140 120 100 Real per capita personal income Nonagri cul tura1 employment 80 0 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 SOURCE'TABLE 2,
Table 2.Indexes For The United States of: Electric Power Sales (in Kwh), Real GNP, Real Per Capita Personal Income, Industrial Production-Total Manufacturing, and Nonagricultural Employment, Annually., 1960-75 (Index (1960=100)
Year Electric power sales Real GNP Real per capita personal income U.S.FRB Indus.Production total manufacturing Nonagri-cultural employment U.S.1960.....96 1~~~~~~~~~~~~~~~~~~~1 9 62~~~~~~~~~~~~~~~~~~~1 9 63~~~~~~~~~~~~~~~~~~~1 9 6 4~~~~~~~~~~~~~~~~~'o~1 965~~~~~~~~~~~~~~~~~~~1 1966....967~~~~~~o~~~~~~~~~~~~1 1968.1969.1970.~~~~~~97 1~~~~~~o~~~~~~~~~~~1 1972 973 o~~~~~~~~~~~~~~~1 1974....~~~~~~9 7 5~~~"o~~~~~~~~~~~~~~~1 100.0 105.5 113.6 121.6 130.3 139.6 152.1 162.0 176.0 191.3 203.7 214.6 230'249.3 248.9 253.7 100.0 102.5 108.5 112.7 118.7 125.7 133.1 136.8 142.8 146.4 145.9 150.3 158.9 167.7 164.8 161.7 100.0 101.2 104.4, 106.6 111.0 116.6 122.1 126.5 131.8 136.1 138.4 140.1 146.4 154.4 151.4 150.8 100.0 100.3 109.2 115.9 12-4.2 136.2 150.3 152.9 161.6 169.0 160.9 160.'9.174.3 191.4 190.2 171.6 Source: U.S.Department of Commerce, Bureau of Economic Analysis, Surve of Current monthly.Federal Reserve Board, Industrial Production Index.U.S.Department of Labor, Bureau of Labor Statistics, Handbook of Labor Statistics, 1975, and~Em lo ment and Earnin s, monthly.100.0 99.6 102.5 104.6 107.6 112.1 117.9 121.4 125.3 129.9 130.8 131.3 135.-9 141.8 144.6 141.9 Business, Q i3 D'w W 8 bJ
CHART 3s INDEXES OF.'ELECTRIC POWER SALES (IN K'AH)BY CP8L NORTH CAROLINA'.
REAL PER CAPITA PERSONAL INCOME-NORTHCAROLINA, INDUSTRIAL PRODUCTION-TEXTILE HILL PRODUCTS, AND NONAGRICULTURAL EMPLOYMENT N C ANNUALLY 1960-75 INDEX (1960=100) 500 450 400 350 300 250 200 Electric power sales Real per capita personal income 150 100 50 Nonagricultural employment FRB Industrial Production, text>le mill products 0 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 SOURCES TABLE
858 Table 3.Indexes of Electric Power Sales (in Kwh)by CPGL-North Carolina, Real Per Capita Personal Income-North Carolina, Industrial Production-Textile Hill Products, and Nonagricultural Employment-North Carolina, Annually, 1960'-75 (Index: 1960=100)Year Electric power sales by CP&L/North Carolina Real per capita personal income North Carolina FRB Industrial Production Index textile mill product Nonagricultural employment North Carolina 960~~~~~~~~~~~~~~~1 96 1~~~~o~~~e~~~~~~~1 1 962~~y~~~~~~~~~~o~~963~~~o~~~~~~~~~o~~1 1 964~~~~~~~~~o~~~~~~1 965~~~~~~~~o~~~~~~~966~~~~~~o~~~~~~~~~1 1967~~~o~~~~~~~~o~~~1968.1 969~~~~~~~~~~~~~~~~1970~~~~~~~~~~~~~~~~971 e~~~~~~~~~o~~~~~1 1972 973 o~~~~~~~~~~~~~~1 1974 o~~o~~~~~~~~~~~~1975 100.0 108.8 119.8 131.6 163.1 182.4 207 2 227.9 260.6 289.1 313.8 343.9 373.0 420.6 427.6 428.0 100.0 102.8 107.9'ill.5 117.3 123.2 132.9 139.5 146.3 153.9'58.5 161.9 173.7 183.8 179.3 176.8 100.0 103.0 109.9 113.9 123.1 134.8 143.7 141.4 153.9 160.1 150.4 153.6 166.1 180.1 173.6 155.4 100.0 101.1 105.3 108.6 113.2 119.7 128.3 133.9 140.4 146.1 149.1 152.1 160.9'168.5 171.3 167.0 Source: Table 1 and table 2.
CHART 4.INDEXES OF OUTPUT PER HOUR OF ALL PERSONS'ABOR COHPENSATION PER HOiJR AND Uf!IT LABOR COSTS IN THE PRIVATE BUSINESS SECTOR ANNUALLY'960-75>
AND QUARTERLY'972-76 22 I I!DEX (1960=100) 0 220.190 190 Labor compensation per hour I I 160)30 I I Labor compensation per hour I I I l Unit labor costs 160 130 Uni t labor costs~I 100~~Output per hour, all persons 100 Output per hour, all persons 70 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 1 2 3 4 1 2 3" 1 2 3 1972 1973 1974 ANNUALLY QUARTERLY 2 3 4 1 2 3 1975 1976 PAUf?CE;T!Bl E RRN Table Page 1 of 2 Table 4.Indexes of Output;Per Hour of All Persons, Labor Compensation Per Hour, and Unit Labor Costs in the Private Business Sector, 1960-7S, and Quarterly 1972-76 (Index: 1967=100)Year and quarter Output per hour of all persons Labor compensa-tion pcr hour Unit.labor costs Annual 1960....1961....1962....1963...~1964....1965..;.1966....1967....1968....1969..~.1970....1971....1972....1973....1974'..1975....Quarterly~~~~78.4 81.0 84.3 87.5 91.4 94.5 97.6 100.0 103.2 103.4 104.2 107.6 110.9 113.0 109.2 111.4 71.4 74.2 77.7 80.7 85.1.88.4 94.7 100.0 107.6 115.1 123.3 131.5 138.9 150.3 164.3 180.2 91.0 91.6 92.2 92.3 93.1 93.6 97.0 100.0 104.3 111.3 118.4 122.2 125.2 132.9 150 4 162.8 1972: I o~e II..III.IV..1973: I o~~II..III.IV..~~\~~~~~~~~~109.1 110.4 110.8 112.7 114.0 112.8 112.3 112.4 136.1 137.8 139.'2 141.9 146.4 148.5 151..0 154.1 124.7 124.8 125.6 125.9 128.4 131.6 134.5 137.1 1974: I II..III.IV..1975: I..II..III IV.110.5 109.4 108.7 107.6 108.1 111.4 113.6 ill3~2 157.1 161.8 166.7 170.7 176.0 179.0 181.3 185.0 142.2 147.9 153.4 158.6 162.9 160.7 159.S 163.4 Continu<d--,
RRN Table 4 Page 2 of 2 Table 4 (continued}
Year and quarter Output per hour of all persons Labor compensa-tion per hour Unxt labor costs 1976:~~~~~~~~I I I~~~~~~~~III.....-.115.3 116.3 117.4 189.8 193.3 196.7 164.7 166.1 167.5P p=preliminary.
Source: U.S.Bureau of Labor Statistics.
INDEX (1960=100) 180'QUARTERLY, 1972-76 (IN 1972 CONSTANT DOLLARS)180 170 170 160 160 150 150 140 140 130 130 1 20'20 110 110 I 100 0 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 ANNUALLY SOUPCE: TABLE 100 0 1234 2 3 4 1972 1973 2 3 4 1974 QUARTERLY 1975 2 3 4 1976
Table RRN Table 5 Page 1 of 2 5.Gross National Product, Annually, 1960-75, and Quarterly, 1972-76 (GNP in billions of dollars, seasonally adjusted annual rate)Year aIld quarter Gross National Product In current dollars Amount Index (1960=100)In 1972 constant dollars In current dollars In 1972 constant dollars Percent change at annual rate Annual 1960-.1961..1962..1963..1964..1965..1966..1967..1968..1969..1970..1971..1972..1973..1974..1975..()uarter 1972: I~~~II..III.IV..1973: I...II..III.I'cl~~1974: I...II..III.IV..1975: I~~~IE..III.IV..~~~~506.0 523.3 563.8 594.7 635.7 688.1 753.0 796,3 868.5 935.5 982.4 1,063.4 1,171.1 1,306.6 1,413'1,516.3 1, 127.0 1,156.7 1,181.4 1,219.4 1,265.3 1, 288.4 1,317.5 1, 355~1 1 372-7 1,399.4 1, 431.6 1,449.2 1, 446.2 1,482.3 1,548.7 1,588.2 736.8 755.3 799.1 830.7 874.4 925.9 981.0 1,007.7 1,051.8 1,078.8~1,075.3 1,107.5 1,171.1 1,235.0 1,214.0 1,191.7 1, 141.2 1, 163.0 1, 178.0 1, 202.2 1,229.8 231 1 1,236.3 1,242.6 1,230.4 1,220.8 1,212.9 1,191.7 1,161.1 1,177.1 1,209.3 1,219.2 100.0 102.5 108.5 112.7 118.7 125.7 133.1 136.8 142.8 146.4 145.9 150.3 158.9 167.6 164.8 161.7 154.9 157.8 159.9 163.2.166.9 167.1 167.8 168.6 167.0 165.7 164.6 161.7 157.6 159.8 164.1 165.5 4.0 3.4 7.7 5.5 6.9 8.2 9.4 5.8 9.1 7.7 5.0 8.2 10.1 11.6 8.2 7.3 13.8 11.0 8.8 13.5 15 9 7.5 9.4 11;9 5.3 8.0 9 5 5.0-0.8 10.4 19.1 10.6 2.3 2.5 5.8 4.0 5.3.5.9 6.0 2.7 4.4 2.6-0.3 3.0 5.7 5 5 1~7-1.8 7.6 7.9 5.3 8.5 9.5 0.4 1.7 2.0-3.9-3.1-2.6-6.8-9.9 5~6 11.4 3.3 Continued--
Table 5 (continued}
RRN Table 5 Page 2 of 2 Year and.quarter In current dollars Gross National Product In 1972 constant dollars Index (1960=100)Amount In current dollars In 1972 constant dollars Percent change at annual rate 1976: I'~0 II...III..1,636;2 1,'246.3 1,675.2 1,260.0 1,708.4 1,271.7 169.2 171.0 172.6'2.6 9.9 8.2 9.2 4.5 3.8 r=rev3.sed Source: U.S.Department of Commerce, 13ureau of Economic Analysis.
I CHART 6.PERCFilT flEV I AT I C'l OF ACTUAL GHP FROIi POTENT I AL GHP g QUARTERLY'ACTUAL Aflfl POTEilTIAL GilP IN 1.72 DOLLAPS)P","-,CE lT+0 Q~2 Q Q" i:.-2.0-4.0-G.p-8.0-10.0-12.0-14.0 1952 53 51 55 5G 57 58 59 60 61 62 63 6 1 65 gg 67 68 69 70 71 72 73 7g 75 7G SOURCE.'ABLE
- 6.
RRN Table 6 Page 1 of 3 Table 6.Actual GNP, Potential GNP, and Percent Deviation of Actual GNP from Potential GNi?, Quarterly, 1952-76 (In billions of 1972 dollars, seasonally adjusted annual rate)Year and quarter Actual GNP Potential Percent.deviation of actual GNP from potential GNP 1952: I~~~~~I I o~~III...IV~~~1953 I~~~~~I I o~~~III....IV~~~~1954: I~~~~II....III...IV o~~~1955: I XI....XII...IV~~~1956: I.IX....III...IV o~~~1957: I~~~~~I I~~~III...IV o~~~1958: I~~~~II....III....IV....1959: I~~~~~I I o~~IXI...IV......~~~~~~~~~o~~~~~~~~~~~~~~~~~~~~~591.3 592.1.598.3'12.5 622.2 626.2 622.4 616.4 608.1 605.6 614.4 626.1 641.1 650.8 660.3 667.0 664.1 667.5 667.9 675.7 680.4 680.9 685.6 676.7 663.4 668.2 684.4 702.1 710.7 726.3 718.6 726.2 584.6 589.G 594.7 599.9 605'610.3 615.6 620.9 626.2 631.6 637.1 642.6 648.1 653.7 659.4 665.1 ,670.9 676.6 682.5 688.4 694.3 700.3 706.4 712.5 718.6 724.8 731.1 737.4 743.8 750.2 756'.7 763.2+1.15+0.42+0.61+2.10+2.83+2.61+l.10'0.72-2.89-4.12-3.56-2.57-1.0'8-0.44+0.14+0.29-1.Ol-l.34-2.14-1.84-2.00 2~7 7-2.94 5.02-7.68-7.81-G.3,9-4.79-4.45'-3.,19-5.04-4.85 Continued--
~~~~~~~~~~~I~~~~~~~I~~'~~~~~~~'~~~~~~~~~I C I~o l~~~~'I~~~~~~~~I t I~~~~~~I I I I I~~I~C~I~1 I'~
Table 6 (continued)
RRN Table 6 Page 3'of 3 Year and quarter Actual GNP Potential Percent deviation of actual GNP from potential GNP 1969: I..II.III IV.1970: I 0~XI.XII IV.1971: I..Ii.III IV.1972: X..Ii.IIX IV.1973: I..II.III XV.1974: I..II.XII IV.1975: I..II~III IV.1976: I..IX III~~~~~~1,074.8 1,079.6 1, 083.4 1, 077.5 1,073.6 1,074.1 1,082.0 1,071.4 1,095.3 1, 103.3 1, 111.0 1, 120.5 1, 141.2 1,163.0 1, 178.0 1, 202.2 1, 229.8 1, 231.1 1,236.3 1,242.6 1,230.4 1,220.8 1,212.9 1,191.7 l 1, 161.1 1, 177.1 1,209.3 1,219.2 1, 246.3 1,260.0 1,271.7-1,065.7 1,076.2 1,086.8 1,097.6 1,108.4 1,119.3'1,'130.3 1,141.5 1,152.7 1,164.1 1,175.5 1,187.1 1,198.8 1,210.6 1,222.6 1,234.6 1,246.8 1,259.1 1,271.5 1,284.0 1,296.6 1,309.4]382,3 1;335.3 1,348.5 1,361.8 lg 375~2 1,388.8 1,401.6 1,414.6+0.85+0.32-0.31-1.83-3.14-4.04-4.27-6.14-4.98-5.22-5.49-5.61-4.80-3..93-3.65-2.62-1.36 2~2 2 2~7 7 3~2 2-5.11-6.77-8.27-10'5-13.90-13.56-12.06-12.21-11.08-10.93-10.93 U.S.Department of Commerce, Bureau nf Econom c Analvsim: The Council of Economic Advisers.r=revised.a/The gap rcvcalcd herein is$156.0 billion expressed in 1972 dollars adjusted, for the rise in prices since 1972;th third quarter 1976 gap is$209-6 billion in current prices.Source:
PERCENT 16 15 14 13 12 r=<<-w g~w*-q~~~w p~CH~7.~0h~ER~CE~%)E~LLRRf'1~ON%(AVERAGED OVER 3 HONTHSg SEASONALLY ADJUSTED 1960-76 f435EN~{AilNSg ANNUAL RATES 10 L 0 1960 61*62 63 64 65 66 67 68 69 70 SOURCE'.TABLE 7~71.72 73 74 75 76
RRN Table~age 1 of Table 7.Consumer Price Index, All Items: Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates, 1960-76 Year and.month CPI, seasonally adjusted, month-to-month rate of change Month-to-month rate of change Annual rate of change-'hree-month moving average 1959: November..
December..
1960: January...
February..
March.....
April.....
May e~~~~~~Juncta~~~July.....~August....
September.
October...
November..
December..
1961..January...
February..
March.....
April.....
May o~~~~~~June......
July o~~~~~August....
September.
October...
November..
December..
~~~~~0.0 0.1-0.1 0.1-0.0 0.5 0.1 0.1-0.1 0.1 0.0 0.5 0.1 0.1 0.0 0.1-0.0'0.1 0.0-0.0 0.3 0.0 0.1-0.0 0.0 0.1 0.00 0.03 0.00 0.20 0.20 0.23 0.03 0.03 0.00 0.20 0.20 0.23 0.07 0.07 0.03 0.00-0.03-0.03 0.10 0.10 0.13 0.03 0.03 0.03 0.0 0.4 0~0 2.4 2.4 2.8 0.4 0.4 0.0 2.4 2.4 2.8 0.8 0.8 0.4 0.0-0.4-0.4 1.2 1.2 1.6 0.4 0.4 0.4 1962: January.February March...April...May-.June....July....August..~~~0.1 0.3 0.2 0.1 0.1-0.2 0.1 0.2 0.07 0.17-0.20 0.20 0.13 0.00 0.00 0.03 0;8 2.1 2.4 2.4 1.'6 0.0 0.0 0.4 Continued--
Table 7 (continued) p<RN Table 7 Page 2 of 6 Year and month CPl, seasonally adjusted, month-to-month rate of change Month-to-.month rate of change Annual rate of change-Three-month moving average September.
October...
November..
December..
1963: January...
February..
March.....
April.....
May t~~~~~~Juncos.100 Jul}o~~~~August....
September.
October..~November..
December..
1964: January...
February..
March.....
April.....
May~o~~~~June......
July......
August September.
October...
November..
December..
1965: 'anuary...
February..
March.....
April.....
May June......
July'~~August....
0~~~~~~~~~0.5-0.1 0.1-0.1'0.2 0.1 0.1-0.1 0.1 0.3 0.3 0.1-0.1 0.1 0.2 0.3 0.2-0.1 0.1 O.l 0.1 0.1-0.0-0.0 0.2 0.1 0.2 0.1 O.1 0.0 O.1 0.3 0.3 0.4-0.0-0.1 0.27 0.20 0.17-0.03 0.07 0.07 0.13 0.03 0.03 0.10 0.23 0.23'.10 0.03 0.07 0.20 0.23 0.13 0.07 0.03 0.10 0.10 0.07 0.03 0.07 0,.10 0.17 0.13 0.13 0.07 0.07 0.13 0.23 0.33 0.23 0.10'.3 2.4 2.1-0.4 0.8 0.8 1.6 0.4 0.4 1.2 2.8 2.8 1.2 0.4 0.8 2.4 2.8 1.6 0.8 0.4 1.2 1.2 0.8 0.4 0.8 1.2 2.1 1.6 1.6 0.8 0.8 1.6 2.8 4.0 2.8 1.2.Continued--
l Hi'Table 7 Page 3 of 6 Table 7 (continued)
Year and month CPX, seasonally adjusted, month-to-month rate of change lion th-to-month rate of change Annual rate of change-Three-month moving.average Septembe October.November December l e~~~~~~~~e~~1 1966: February March...April...May e~~~~June....July....August..Septembe October.November December 1967:~~~~~~~r~~~~~~January........
0.2 0.1 0.3 0.4 0.1 0.6 0.2 0.4 0.2 0.1 0.2 0.6 0.2 0.4 0.0 0.1 0.03 0.07 0.20 0.27 0.27 0.37 0.30 0.40 0.27 0.23 0.17~0.30 0.33 0.40 0.20 0.17 0.4 0.8 2.4 3.3 3.3 4.5 3.7 4.9 3.3 2.8 2.1 3.7 4.0 4.9 2.4 2.1 January.February March...April...May~~~~~June....July...~August..Septembe October.November December 1968: January~February March...April...May~-~e~~June...., July....August..r e~~~~~~~~~~~~~~~~~~~~~~0.1 0'.2 0.0 0.2 0.2 0.4 0.3 0.4 0.3 0.3 0.4 0.3 0.4 0.3 0.4 0.2 0.4 0 5 0.5 0.4 0.07 0.13 0.10 0.13 0.13 0.27 0.30 0.37 0.33 0.33 0.33 0.33 0.37 0.33 0.37 0.30 0.33 0.37 0.47 0.47 0.8 1.6 1.2 1.6 1.6 3.3 3'.7 4.5 4.0 4.0 4.0 4.0 4.5 4.0 4.5 3'4.0 4.5 5.8 5.8 Continued--
BfcN Table Page 4 of Table 7 (continued)
Year and month CPI, seasonally adjusted, month-to-month rate of change Month-to-month rate of'hange Annual rate of change-Three-month moving average September.
October...
November..
December..
1969 January...
February..
March.....
April.....
May o~~~~~~June......
July o~~~~August....
September.
October...
November..
December..
1970: January...
E'ebruary..
March.....
A'pri 1.....May~~~~~~~June......
July t~~~~~August....
September.
October...
November..
December..
1971: 0.3 0.6 0.5 0.3 0.3 0.5 0.7 0.6 0.4 0.6 0.5 0.5 0.5 0.5 0.5 0.6 0.5 0.5 0.4 0.5 0.5 0.3 0.3 0.3 0.4 0.5 0.5 0.4 0.40 0.43 0.47 0.47 0.37 0.37 0.50 0.60 0.57 0.53 0.50 0.53 0.50 0.50 0.50 0.53 0.53 0.53 0.47 0.47 0.47 0.43 0.37 0.30 0'3 0.40 0.47 0.47 4.9 5.3 8 5.8 4.5 4.5 6.2 7.4 7.1 6.5 6.2 6.5 6.2 6.2 6.2 6.5 6.5 6.5 5.8 5.8 5.8 5.3 4.5 3.7 4.0 4.9 5.8 5.8 January.February March...April...May~r~~Juno..../Julyo~o~August..~~~~~~~~~~~~0.3 0.1 0.3 0.3 0.5 0.5 0.2 0.2 0.40 0.27 0.23 0.23 0.37 0.43 0.40 0.30 4.9 3.3 2.8 2.8 4.5 5.3 4.9 3.7 Continued--
Table 7 (continued) l<l<N Table.7 Page 5 of 6 Year and month CPI, seasonally adjusted, month-to-month rate of change Month-to-month rate of change Annual rate of change-a/Three-month moving average September.
October...
November..
December..
1972: January...
February..
March.....
Aprl lo~~~~May.......
June'~...~.July e~~~~~August....
September.
October...
November..
December..
1973: January...
February..
March.....
April.....
May~~~~~~~June'~0 July......
August....
September.
October..~November..
December..
1974: January.February March...April...May~~~~~June....~'.y-~..Augus t~~~~~V~~~~0.1 0.2 0.2 0.4 0.2 0.4 0.2 0.2 0.3 0.2 0.4 0.2 0.3 0.3 0.3 0.3 0.5 0.6 0.9 0.8 0.6 0.5 0.2 1.7 0.4 0.7 0.8 0.7 1.2 1.1 1.0 0.6 1.1 0.8 0.7 1.3 0.17 0.17 ,0.17 0.27 0.27 0.33 0.27 0.27 0.23 0.23 0.30 0.27 0.30 0.27 0.30 0.30 0.37 0.47 0.67 0.77 0.77 0.63 0.43 0.80 0.77 0.93 0.63 0.73 0.90 1.00 1.10 0.90 0.90 0.83 0.87 0.93 2.1 2.1 2.1 3.3 3.3 4.0 3.3 3.3 2.8 2.8 3.7 3.3 3.7 3.3 3.7 3.7 4.5 5.8 8.3 9.6 9.6 7.8 5.3 10.0 9.6 11.7 7.8 9.1 11.4 12.7 14.0 11.4 11.4 10.4 11.0 11.7 Continued--
I l I lkl<N Ta bi('.Page 6 of Table 7 (con tinued)Year and month CPI, seasonally adjusted, montn-to-month rate of change Month-to-month rate of change Annual rate of change-Three-month moving average September October..Novembor.December.l975: January..February.March....April,....
May~~~~~June.....July.....August...September October.~November.December.1976: January..February.March....April....Nay......June....~July..-..August...September October..1.1 0.9 0.9 0.8 0.7 0.5 0.4 0.5 0.5 0.7 1.0 0.4 0.4 0.6 0.6 0.5 0.4 0.1 0.2 0.4 0.6 0'0 5 0.5 0.4 0.3 1.03 1.10 0.97 0.87 0.80 0.67 0.53 0.47 0.47 0.57 0.73 0.70 0.60 0.47 0.53 0 57 0.50 0.33 0.23 0.23 0.40 0.50 0.53 0.50 0.47 0.40 13.1 14.0 12.3 11.0 10.0 P.3 6.5 5.8 5.8 7.1 9.1 8.7 7.4 5.8 6.5 7.1 6.2 4.0 2.8 2.8 9 6.2 6.5 6.2 5 8 4.9 a/Computed by averaging, for each month, seasonally adjusted ratr s of change for that month and the prcccding 2mant!>s (tha" is, a 3-month moving average, plotted on thc thirr', month)and by converting to compound annual rates of change.Source: U.S.Department of Labor, Bureau of Labor Statistics.
-I RRN CHART 8 CHART 8.CONSUMER PRICE INDEX--ALL ITEMS AND FOODS MONTHLY PERCENT CHANGESJ AVERAGED OVER 3 MONTHS'EASONALLY ADJUSTED ANNUAL RATES, 1972-76 PERCENT 36 32 28 24 20 16 12 8 4 0/////i i I I 1 I I i I l I I I I I lI All items Food I I i l I Ii l l l\I i I i 1 I 1I C A>u V W C u rr a, u 6>c A u u w~rr c.u.>v crA u u 4 c~rr c u>rr~or 2 kc4wcrrr8=8 or 2<2coÃrrr8-8 c A 4 4 w c~~CI u>tp c A 4'4>c~N c, u)rr 4~2'c 2 4 4 4~8='4" 2~2 4 4~4 8='1972 1973 1974 1975 1976 SOURCE: TABLES 7 AND 8
RRN Table S Page 1 of 2 Table 8.Consumer Price index, Food: Nonthly Percent Cnanges, Averaged Ovei 3 Months, Seasonally Adjusted Annual Rates, 1972-76 Year and month CPX, food, sea-sonally adjusted, month-to-month rate of change Month-to-month rate of change Annual rate of change-~Three-month moving average 1971: November..
December..
1972: January....
February..
March.....
APl l 1 o~~~~Ma)o~~~~~~June~~~July.August....
September.
October...
November..
December..
1973: January...
February..
March.....
APrl 1 o~~~~Nay o~~~o~~June......
July o~~~~~August....
September.
October...
November..
December..
1974: January.February March...April...Nay o~~~~June.July August....
~~~~~~~~~~~~~o~~~~~~-0.3 1.1-0.4 1.2 0.0 0.1 0.4 0.2 0.5 0.4 0.6 0.5 0.7 0.4 1.7 1.4 2.4 1.7 1.5 1.0 0.2 6.1-0.3 0.5 1.3 0.9 1.4 1.9 0.8 0.0 1.1'0.1-0.3'1.5 0.33 0.63 0.27 0.43 0.17 0.23 0.37 0.37 0.50 0.50 0.60 0.53 0.93 1.17 1.83 1.83 1.87 1.40 0.90 2.43 2.00 2.10 0.50 0.90 l.20-l.40 1.37 0.90 0.63 0.40 0.30 0.43 4.0 7.8 3.3 5.3 2.1 2.8 4.5 4.5 6.2 6.2 7.4 6.5 11.7 15.0 24.3 24.3 24.9 18.2 11.4 33.4 26.8 28.3 6..2 11.4 15.4 18.2 17.7 11.4 7.8 4.9 3.7 5.3 Continued-
Table 8 (continued)
RRN Table 8 Page 2 of 2 Year and month CPI, food, sea-sonally ad-justed, month-to-month rate of change Month-to-month rate of change Annual rate of change-Three-month moving average September.
October November..
December..
1975: January...
February..
March April Mayo~~~o o~June'~.oo..July o~~~~~August....
September.
October...
November..
December..
1976: January...
February..
March..~April t 1ay.June July o~~~August....
September.
October 1.8 1.0 1.1 1.0 0.5-0.1-0.3 0.2 0.9 1.2 1.8-0.2 0.3 0'.9 0.6 0.6-0.2-1.0-0.8 0.6 1.0 0.2 0.1 0.3 0.0 0.3 1.00 l.43 l.30 1.03 0.87 0.47 0.03-0.07 0.27 0.77 1.30 0.93 0.63 0.33 0.60 0.70 0.33-0.20-0.67-0.40 0.27 0.60 0.43 0.20 0.13 0'0 12.7 18.6 16.8~13.1 11.0 5.8 0.4-0.8 3.3 9.6 16.8 11.7 7.8 4.0 7.4 8.7 4.0-2.4-7.8-4.7 3.3 7.4 5.3 2.4 1.6 2.4 rates of change for that month and the preceding 2 months (that is, a 3-month moving average, plotted on the third month)and by converting to compound annual rates of change.Source: U.S.Department of Labor, Bureau of Labor Statistics.
RRN CHART 9 CHART g.CONSUMER PR ICF INDE>;ALL ITEMS'OMMODITIES LESS FOOD AND SERVICES, MONTHLY PERCENT CHANGES'VERAGED OVER 3 MONTHS'EASONALLY ADJUSTED ANNUAL RATES, 1972-76 PERCENT 32 28 24 20 Commodities less foods 16 12 1 items~//K///g/0 gC'/See vices 4-12 4>C~PCu)V CAN@>C~QCu)Qcgla4>Ca~Cu 4 s".2 c 2 4~c o')8=8 4 (" 2 c 2~~~v')8=a 4 r" 2 c 24~2 4 8=a cA La 4~CA COO 4)0 CD 4 4 4 w VC 4)Q 4~2 f24~24 8='8 4-2 0244 Z 482 c 1972 1973 SOURCE: TABLES 7, g"A/AND g-B, 1974 1975 1976
R:<N Table 9-A Pago 1 oF 2 Table 9-A-Consumer Price index, Commodities Less Food: Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates, 1972-76 Year and month CP I, commodities less food, sea-sonally adjusted, month-to-month rate of change Month-to-month rate of change Annual rate change-a/Three-month moving average 1971: November..
December..
1972: January...
February..
March.....
April.....
May o~~~~~~Juneo~~ooo July o o~~~~August....
September.
October...
November..
December..
1973: 'anuary...
February..
March.....
April.....
May~~~~~~~June~~~~~~July o~~~~~August....
September.
October...
November..
December..
~~~~~~0.1 0.2 0.3 0.2 0.1 0.2 0.3 0.0 0.3 0.3 0.4 0.2 0.2 0.2 0.0 0.4 0.3 0.5 0.3 0.3 0.2 0.3 0.2 0.6 0.8 0.9 0.20 0.23 0.20 0.17 0.20 0.17 0.20 0.20 0.33 0.30 0.27 0.20 0.13 0.20 0.23 0.40 0.37 0.37 0.27 0.27 0.23 0.37 0.53 0.77 2.4 2.8 2.4 2.1 2.4 2.1 2.4 2.4 4.0 3.7 3.3 2.4 1.6 2.4 2.8 4.9 4.5 4.5 3.3 3.3 2.8 4.5 6'9.6 1974: January.February March...April...May..June....July August..~~~~~~~1.3 1.0 1.3 0.8 1.2 1.2 1.1 1.4 1.00 1.07 1.20 1.03 1.10 1.07 1~17 l.23 12.7 13.6 15.4 13.1 14.0 13.6 15.0 15.8 Continued--
"v'"aolc Page'.2 nf 2 Table 9-A (continued)
Year and month CP I, commodities less food, sea-sonally adjusted, month-to-month rate of change Month-to-month rate of change Annual rate of change-Three-month moving average September October..November.December.1975 January..February.March....April....May o~~~~Juneau..~July'.~oo August...September October..November.December.1976: January..February.March....April....May June.....July.....August...September October..~~~~~~~0.9 0.8 0.8 0.6 0.6 0.7 0.6 0.5 0.3 0.4 0.9 0.6 0.3 0.3 0.3 0.4 0.2 0.3 0.3 0.3 0.6 0.5 0.6 0.6 0.4 Q.4 1.13 l.03 0.83 0.73 0.67 0.63 0.63 0.60 0.47 0.40 0.53 0.63 0.60 0.40 0.30 0.33 0.30 0.30 0~27 0.30 0.40 0.47 O.S7 Q.S7 0.53 0.47 14.4 13.1 10.4 9.1 8.3 7.8 7.8 7.4 5.8 4 9 6.5 7.8 7.4 4.9 3.7 4.Q 3.7 3.7 3.3 3.7 4.9 5.8 7.1 7.1 6.5 5.8 a/Computed by averaging, for each month, seasonally adjusted rates of change for that month and the preceding 2 months (that is, a 3-month moving average, plotted on the third month)and by converting to compound annual rates of change.Source: U.S..Department of Labor, Bureau of Labor Statistics.
RRN Table 9-B Page 1 of 2 Consumer Price Index, Services: Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates,'1972-76 Year and month CPX, services, seasonally ad-justed, month-to-month rate;of change Month-to-month rate of change Annual rate of change-, Three'-month moving average 1971: November.December.1972: January..February.March....April....May o~~~~~June.....July o~~~~'ugust.~~September October..November.December.1973: January..February.March....April....May~~~~~~June.~...July.....August...September October.~November'December.~~~~~~~~~~~~~~0.3 0.2 0.5 0.3 0.2 0,4 0.3 0.2 0.3 0.2 0.1 0.4 0.2 0.3 0.1 0.4 0.4 0.4 0.5 0.4 0.2 0.6 0.9 1.1 0.5 0.6 0;33 0.33 0.33 0.30 0.30 0.30 0.27 0.23 0.20 0.23 0.23 0.30 0.20 0.27 0.30 0'0 0.43 0.43 0.37 0.40 0.57 0.87 0.83 0.73 4.0 4.0 4.0 3.7 3.7 3.7 3.3 2.8 2.4 2.8 2.8 3.7 2.4 3.3 r.7 4.9 5.3 5.3 4.5 4.9 7.1 11.0 10.4 9.1 197 4:.January..February.March....April....May~~~~~~June~~~~~July o~~~~August...~~~~~~~~~~~~~0.8 0.8 0.9 0.7 1.1 0.9 1.'1 1.0 0.63 0.73 0.83 0.80 0.90 0~90 1.03 1.00 7.8 9.1 10.4 10.0 11.4 11.4 13.1 12.7 Continued--
".;?1 Table 9-L:>age 2 of 2 Table 9-B (continued)
.Year and month CPI, services, seasonally ad-justed, month-to-month rate of change Month-to-month rate of change Annual'a.te of change-a/Three-month moving average September October..November.December.1975: January..February.March....April....May~~~~~~June.....July.....August...September.October..November.December.~~~0~~~~~~~~~~~~0~~~~~~~~~~~~~1.0 0.9 0.8 0.8 0.9 0.8 0.6 0.6 0.4 0.7 0.5 0.4 0.8 0.6 1.0 0.6 1.03 0.97 0.90 0.83'.83 0.83 0.77 0.67 0.53 0.57 0.53 0.53 0.57 0.60 0.80 0.73 13.1 12.3 11.4 10.4 10.4 10.4 9.6 8.3 6.5 7.1 6.5 6.5 7.1 7.4 10.0 9.1 1976: January..February.March....April....Hay~~~~~~June.....July.....August.;.September October..1.1 0.7 0.7 0.5 0.4 0.6 0.6 0.6 0.5 0.5 0.90 0.80 0.83 0.63 0.53 0.50 0.53 0.60 0.57 0.53 11.4 10.0 10.4 7.8 6.5 6.2 6.5 7.4 7.1 6.5 V ratos of change for that month and the pre.coding 2 months (that is, a 3-month moving average, plottod on the third month)and by convert'ing to compound annual rates of change.Source: U.S.Department of Labor, Bureau of Labor Statistics.
1}I L:}RRN CHART 10 CHART 10, WHOLESALE PRICE INDEX--ALL COMMODITIES,'NDUSTRIAL COMMODITIES~
AND FARM PRODUCTS, PROCESSED FOODS'ND FEEDSr'ONTHLY PERCENT CHANGES'VERAGED OVER 3 MONTHS'EASONALLY ADJUSTED ANNUAL RATES'972-76 PERCENT 110 il00 i90 80"70'60 50 40 Farm-/i>/i il~~il~~30 20 I10 I A rr.~I Al 1 I~-.10-20-30 Industrial
~~Cll'44)Cm I)Ogle))V 4~2~24~c482o Cl7 4 4)C~Clltru)V a o a a c c o o v o o%4eXA'XCN(IOOCI 44+CWOI Okl)VC+4 4)C~O'C>)VCCI 44)CWVC4J)V aoaoaoccovooaoacaoocoVOoaoqcqoooovvo ZC2gvcolorcl qr razes(olo-cI
<4rc2ooa:olo-cl 1972 1973 1974 1975 1976 SOURCE: TABLES 10-Ap 10-B AND 10-C
RRN Table Page 1 of 10-A 2 Table 10-A.Wholesale Price Index, All Commodities:
Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates, 1972-76 Year and month NPI, seasonally adjusted, month-to-mont.h rates of change lion th-to-month rate of change Annual rate of change-Three-month moving average 1971: "'ova'mbe L December 1972: January.February March...April...May.....June....July....August..Scptcmbc October.November December 1973:~~~~~~r~~~~~~0.3 0.8 Q 0.5'.2 0.2 0.6 0.3 p 5 0.6 p.4 0.2 1.0 1.7 0.43 0.50 0.30 0.30 0.33 Q.37.0.47 0.l7 0.50 n.lp 0 53 0.97.')~.i G.?3.7 3.I 4.0 5.8 ().2 9 6.5 12.3 January'ebruary March...April...~lay.....Junco~...July....AucJus t.Se;>tembe October.November December 1974:~~~~~~~0'.8 1.6 2.3 0.6 2.1 1.8-3 5 6.1-1.'l Q 0.9 1.G 3..17 l.37 1 57 1.50 l.67 l.50 0.80 2.13 1.07 1.50-0.23 0.77 15.0 17.7 20.C)19.C>'19.Ci 3,0~0 28.8 13.(i 19.6 2.7 9~6 JatlLl lry February March~~April...i~4l y June.....Ju3y....Au~jus t..Sep tembe~~r 2 9*3.6 l.l 0.8 1.5 0.2 3.6 3.7 0.2.l.80 2.03 1.97 3..27 l.23 0.83 1.77 2.50, 2 50 23.9 26.~)16.4 15.8 3.0.4 23.4 34 e 34.5 Contxnucd--
BRN Table 10-A Page 2 of 2 Table 10-A (continued)
Year and month HPI, sc<<sonally adjust.<d, month-to-month rates of ch<<ncjc I'ion t.h-to month rate of change Annual rate of change-Three-mon th moving<<vc rage\October.~.Novcmbcr.December.1975: January..I'bruar 4 March....April....Hay......June.....July o~~~~August...September October..Novcmbcr.December.1976: January..Fcbrual)!<arch....
April....ilay t~~~~J u'nc~..July....August...September October..~~~~~~2.2 1.4-0.3-0.2-0.7-0.5 0.9 0.6 0.0 0.8 0.9 0.9 1.1 0.1 0.3-0.2-0.4 0.2 0.8 , 0.3 0.4 0.3-0.1 0.9 0.6 2.03 1.27 l.10 0.30-0.40-0.47-0.10 0.33 0.50 0.47 0.57 0.87'.97 0.70 0.50'0.07-0.10-0.13 0.20 0.13 0.50 0.33 0'0 0.37 0.,47 27 3 16.4 14.0 3.7-4.7-5.5 LE 2.0 6o2 5.8 7.1 11.0 12.3 8.7 6.2 0.8-l.2-1.5 5.3 4.0 2.4 4.5 5.8 a/Compute>ally adjusted r<<tcs of changi'or that month and thc prcccd.in' montl;s (that is, a 3-month moving<<vcragc, plott<d on thc third.month)and I>y'converting to compound annua1 rates of change.Source: U.S.Department of Labor, Bureau of Labor Statistics.
RRN Table 10-8 Page 1 of 2 Table lO-B.Wholesale Price Index, Industrial Commodities:
Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates, 1972-76 Year and month WPI, industrial"commodities, seasonally adjusted, month-to-month rate of change Month-to-month rate of change Annual rate of change-Three-month moving average 1971: November...
December...
O.1 0.6 1972: January..February.March..~.April....tray~~~~~~June.....Julyo~~~~August...September October..November.December.1973: January..February.March....April....May...June..July....~August...September October..November.December.~~~~~~,~~~~~~~~0.2 0.3 0.2 0.2 0.3 0.3 0.3 0.4 0'.3 0.3 0.5 0.4 0.2 0.8 1.1 0.8 0.8 0.6 0.2 0.6 0.8 1,.0 1.6 1.8 0.30 0.37 0.23 0.23 0.23 0.27 0.30 0.33 0.33 0.33 0.37 0.40 0.37 0.47 0.70 0.90 0.90 0.73 0'3 0.47 0.53 0.80 l.13 1.47 3:7 4.5 2.8 2.8 2.8 3.3 3.7 4.0 4.0 4.0 4.5 4.9 4.5 5.8 8.7 11.4 11.4 9.1 6.5 5.8 6.5 10.0 14.4 19.1 19"4 Januar Fcbrua t,larch.April.May...June..July..August ry~~~~~~~~~~~~~~~~'Y 2.2 1.8 2.8 2.6 2.5 2.0 2.8 2.5 1.87 1.93 2.27 2.40 2.63 2.37 2.43 2.43 24.9 25.8 30.9 32.9 36.6 32.5 33.4 33.4 Continued--
RRN Table 10-B Page 2 of 2 Table 10;B (continued)-Year and month WPX, indus trial commodities, seasonally adjusted, month-to-month rate of change Month-to-month rate of change Annual rate of change-Three-month moving average September.
October...
November..
December..
1975: January...
February..
March.....
Aprl 1 o~~o May o~~~~~~June......
July o~~~~August....
September.
October...
November..
December..
1976: January...
February..
March.....
April.....
May.......
June......
July o~~"~~August....
September.
October...
~~~~~~1.1 1.5 0.9 0.4 0.8 0.1 0.1 0.2 0.2 0.2 0.4 0.7 0.9 1.2 0.7 0.6 0.4 0.1.0.3 0.3 0.1 0.5 0.7 0.7 0.9 1.0 2.13 1.70 l.17 0,.93 0.70 0.43 0.33 0.13 0.17 0.20 0.27 0.43 0.67 0 03 0.93 0.83 0.57 0.37 0.27 0.23 0.23 0.30 0.43 0.63 0.77 0.87 28.8 22.4 15..0 ll.7 8.7 5.3 4.0 1.6 2.1 2.4 3.3 5.3 8.3 11.7 Ll.7 10.4 7.4 4'3.3 2.8 2.8 3.7 5.3 7.8 9.6 11.0 a/Computed by averaging, for each month, seasonally adjusted tates oi chanqe for that: month and the preceding 2 months (that is, a 3-month moving average, plotted on the third month)and by convertinq to compound annual rates of change-.Sou'e're: 'U.S.Department of Laboi, Bureau of Labor Statistics.
RBf0 Table Page 1 of Table 10-C.Wholesale Price Index, Farm Products and Processed Foods and Feeds: Monthly Percent Changes, Averaged Over 3 Months Seasonally Adjusted Annual Rates, 1972-76 Year and month WPX, farm prod-ucts&processed foods and feeds, seasonally a'dj., month-to-month rate of change Non th-to-month rate of change Annual rate of~change-Three-month moving average 1971: November.December.1972: January..February'riarch....
April....Nay o~~~~~June.....July o~~~~August...September October..November.December.1973: January'~.February.Narch....April....Ma y~o~~~~June.....July.....August...September October..November.December.1974: January..F'ebruary.
March..., April.:..Nay~~~~~~June.....July.....August...~~~~~1.3 0.2 1.1 0.2 0.1 1.5 0.3 1.1 1.0 0.8 0.0 2.3 5.0 2.1 3.4 5.2 O.1 4.8 4.7-5 3 18.5-5.6 2~7-0.8 1.3 4.6 1.1-l.7-3.1-0.9-4.1 5.6 6.7 0.87 0.87 0.50 0.47 0.60 0.63 0.97 0.80 0.97 0.60 1.03 2.43 3.13 3.50 3.57 2.90 3.37 3.20 1.40 5.97 2.53 3.40-3.03-0.73 l.70 2.33 1~33 1~2 3-1.90-2.70 0.20 2.73 11.0 11.0 6.2 5.8 7.4 7.8 12.3 10.0 12.3 7.4 13.1 33.4 44.8 51.1 52.3 40.9 48.8 45.9 18.2 100.5 35.0 49.4-30.9-9.1 22.4 31.8 17.2-13.8-20.6-28.0 2.4 38.2 Continued--
RRN Table 10-C Page 2 of 2 Table 10-C (continued)
Year and month WPX, farm prod-ucts&processed foods and feeds, sea onally adj., month-to-month rate-of, change Month-to-month rate of change Annual rate of change-Three-month moving average September.
October...
November..
December..
1975: January...
February..
March.....
April.....
May t~~~~~~June~~~~~e July'~~~~August....
September.
October...
November..
December.~1976: January.February March...April...May.June....July....August..Septembe October.~~~-1.9 4.1 2.6-1.9-2.5 2~7-,1.9 3~0 1.8-0.5 1.9 1.3 1.1 1.0-1.5-0.6-2.1-1.9-0.2 2.8 1.0.0.4-1.0-2.9 1.0-0.9 3.47 2.97 1~60 1.60-0.60 2~3 7 2%3 7-0.53'0.97 1.43 1.07 0.90 1.43 l.13 0.20-0.37-1.40-1.53-1.40 0.23 1.20 1~40 0.13-l.17-0.97-0.93 50.6 42.1 21.0 21.0-7 0-25.0-25.0-6.2 12.3 18.6 13.6 11.4 18.6 14.4 2.4-4.4-15.6-16.9-15.6 2.8 15.4 18.2 1.6-13.2-11.0-10.6'/Computed by averaging, for each month, seasonally adjusted rates of change for that month and the preceding 2 months (that i, a 3-month moving average, plotted on the third month)and by converting to.compound annual rates of change.Source: U.S.Department of Labor, Bureau of Labor Statistics.
M t(0 OF I'iORKERS (fN flfLL[ONS)
E OF COST-OF-LIVING ESCALATOR PROVISIONS IN HAJOR UNIO 1960-76 CONTRACTS, 10 O It$L 0 0 0 6'?Ao<<<<4'x L 0 F L<<V"'<<:?"<<?'.c:;5'5-i???XP V?~;p~Q C'>"")sx$y??r?,."??,'5 r'Qp gg>@+4 ,c$j?'I'r<<'<<ip: "'.<<v?r.ri<<i<<.r r.'r<<?i@/$~<<'.:<<+%'Xj4 gC':PQg?r:.re>Pi 76 L Cl L 0 0 L 0 L QP~L 0 0<<r?QP t<<?~<<r?0~L 0 Ql (9 IA 0 0'0 L O 0 0 64 6g 66 67 68 SOURCE.'TABLE 11?
Table ll.Coverage of Cost-of-Living Escalator provisions in Major Union ontracts, 1960-76 (Number of workers'n millions)Year Number of workers under major contracts-
/Number of workers.under major contracts covered by escalators, January 1 Percent of mayor contract workers covered by escalato-s 1960......
1961......
962'~~~~~~~~~~~~~~~~1 1963....1964...1965~~~~~~~~~~~~1966~~~~~~~~~~~967~~~~~~~~o~t~~~~~~~1 968~~~~~~~~~~~~~~~o~~1 9 69~~~~~~~~~~~~~~~~~1 1970 1971 972~~~~~~~~~~~~~~~~~1 1973...1974....1975 1976..~.8.1 8.1 8.0 7.8 7.8 7.9 10.0 10.6 10.6 10.8 10.8 10.6 10.4 10.5 10.3 10.2 10.2 4.0 2.7-/2.5 1.9 2.0 2.0 2'2.2 2.5 2.7 2.8 3.0 4.3 4.1 4.0 5.1 5.9 49.4 33.3 31.3 24.4 25.6 25.3 20.0 20.8 23.6 25'25'28.3 41.3 39.0 38.8 50.0 57.8 P~8 U.'I wQ a/Contracts covering 1,000 workers or more in private industry.Prior to 1966 the construc-tion, service, finance, insurance, and real estate industries were excluded.b/Midpoint in range of BLS estimate, for number of workers covered rounded to nearest one-tenth of 1 million.Source: U.S.Department of Labor, Bureau of T.abor Statistics.
CHART 12 INDEXES OF CONSUMER PRICES AND HOODY S AYERAGE CORPORATE BOND YIELDSI ANNUALLY/1960-75, AND NONTHLY, 1972-76-INDE><(1960=100)
-240 240 220 200 I 180 Moody's average corporate bond yields 220 200 180 Moody's average corporate bond yields 160 160 CPI i 140 140 120 CPI 120 100 100 80 80 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 ANNUALLY 1972 1973 1974 MONTHLY 1975 1976 SOURCES TABLE 12.
RRN Table 12 Page 1 of 2 Table 12.indexes of Consumer Prices and of Moody's Average-Corporate Bond Yields, Annually, 1960-75, and Monthly, 1972-76 Year and month Consumer Price index: 1960=100 Average-Corporate a Bond Yields Annual 1960,.1961..1962..1963..1964;.1965..1966..19'67..1968..1969..1970..1971..1972..1973..1974..1975..~0~~~~~~~100.0 101.0 102.1'103.4 104.7 106.5 109.6 112.7 117.5 123.8 131.1 136.8 141.3 150.1 166.5 181.7 Percent 4.73 4.66 4.62 4.50 4.57 4.64 5.34 5.82 6.51 7.36 8.51 7.94 7.63 7.80 8.98 9.46 index: 1960=100 100.0 98.5 97.7 95.1 96.6 98.1 112.9 123.0 137.6 155.6 179.9 167.9 161.3 164.9 189.9 200.0 N~onthl 1972: January..February.March....April....May o~~~~~June.....July e~~~o August...September October..November.December.1973: January..February.March....April....May e~o~e~June....~July s~o~August...~~~~138.9 139.6 139.8 140.1 140.6 140.9 141.5 141.7 142.3 142.7 143.1 143.5 144.0 145.0 146.3 147.4 148.3 149.3 149.6 152.3 7;66 7.68 7.66 7.71 7.71 7.66 7.66 7.61 7.59 7.59 7.52 7.47 7.49 7.57 7.62 7.62 7.62 7.69 7.80 8.04 161.9 162.4 161.9 163.0 163.0 161.9 161.9 160.9 160.5 160.5 159.0 157.9 158.4 160.0 161.1 161.1 161.1 162.6 164.9 170.0 Continued--
Table 12.(continued)
RRN Table 12 Page 2 of,.;2 Year and month Consumer Price Index: 1960=100 Percent~Index: 1960=100 Average-Corporate a/'ond Yields September.
October...
November..
December..
1974: January...
February..
March.....
April.....
May o~~~~~~June.~....July o~~~~~August....
September.
October...
November..
December..
1975: January...
February..
March.....
Aprl 1~~~~~May e~~~~~~June~~~July e~~o~~August....
September.
October...
November..
December..
1976: January...
February..
March.....
April.....
Mayo o~~~~~June......
July o~~~August....
September.
October...
152.8 154.0 155.1 156.1 157.5 159.5 161.3 162.2 164.0 165.6 166.9 169.0 171.0 172.5 174.0 175.2 176.0 177.2 177.9 178.8 179.6 181.1 183.0 183.5 184.4 185.6 186.7 187.5 187.9 188.4 188.8 189.6 190.8 191.8 192.9 193.8 194.6 195.4 8.06 7.96 8.02 8.05 8.15 8.17 8.27 8.51 8.68 8.85 9.10 9.36 9.67 9.80 9.60 9.56 9.55 9.33.9.28 9.49 9.55 9.45 9.43 9.51 9.55 9.51 9.44 9.45 9.33 9.23 9.18 9.04 9.06 9.05 8.97 8.85 8.72 8.63 170.4 168.3 169.6 170.2 172.3 172.7 174.8 179.9 183.5 187.1 192.4 197.9 204.4 207.2 203.0 202.1 201.9 197.3 196.2 200.6 201.9 199.8 199.4 201.1 201.9 201.1 199.6 199.8 197.3 195.1 194.1 191.1 191.5 191.3 189.6 187.1 184.4 132.5 a/Simple average of Aaa, Aa, A, and Baa yields on seasoned bonds.Sources: CPI data from U.S;Department of Labor, Bureau of Labor Statistics.
Bond yields from Moody's Investor's Service.
CHART 1 3 I NTEREST COSTS ON LONG TERN DEBTS CPK Li AH!IUALLYi 1 9 60-7 6 PERCENT 12 10 New debt 5 I I I I I I/1 b a I~r r r~Embedded debt 0 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 Note: No long-term debt was issued in 1962, 1963, 1965, and 1969.SOURCE'TABLE
- 13.
RRN Table 13 Page 1 of 1 Table 13.Interest Costs on New and Embedded Long-Term Debt, CP&L, Annually, 1960-75 Year Embedded debt New debt Differential between embedded and new debt---------percent----
pct.points----
1960.........
1 96 1~~~~~~~3.62 3.76 4.92 4.54 1.30 0.78 1962~~~~~~~~~n.a.1963~~~~~~~~~n.a.1964~~~~~o~~~3.87 4.50 0.63 1965~~~~~~~~~n.a.1966.........
1967.........
1968~~~~~~~~4.04 4.40 4.72 5.18'6.45 6.87 l.14 2.05 2.15 1 9 69~~~~~~~~~n.a.1 970~~~~~~~~~1971.........
1 972~~~~~~~~1 973~~~~~~~~~1 974~~~~~~~~~1975~~~~~~~~5.64 6.14 6.40 6.77 7.17 7.72'8.85 7.78 7.81 8.10 9.88 11.27 3.21 1.64 1.41 1.33 3.11 3.55 Note: Based on mortgage bond indebtedness.
Mortgage bonds have constituted virtually all long-term debt for the years covered;for example, 96 percent in 1975'.Embedded debt: is based on weighted average cost to Company as of end of year.No iong-term (mortgage bond)debt was issued in 1961, 1963, 1965 and 1969.Source: Carolina Power and Light Company.
<<s I.[: t.i~HA~4.~EN PO~E%%R I 8I S~:%%)S~OCQRi
~YP~'NNUALLY, 1971-75, AND QUARTERLY AT ANNUAL RATES, 1974-76 S BILLIONS 65 60.55 50 45 40 35 ANNUAL DATA QUARTERLY DATA AT ANNUAL RATES f~!I IW i I I r-p c publ icly'-"'-"-: offered bonds".otal issues stocks: privately~~la ed bonds 30 25 20 10 0 AS/1971 72 73 74<<5Q 75 g5 1 2 3 1974<<X<<W~A$~.)c 2 3 1975 gN Yg+S.2 3 1976 SOURCE'.TABLE 1'.4.--
RRN Table 14 Page,l of 1 Table 14.New Corporate Security Issues: Gross Proceeds, by Type of Issue, Annually, 1971-75, and Quarterly at Annual Rates, 1974-76 (Xn millions of dollars)Gross proceedsa by type of issue/Year and quarter Total Bonds Publicly offered Privately placed Common and preferred stock A~nnuall 1971~~~~~~~~~~~1972~~~~~~~~~~1 973~~~~~~~~~~~1974...........
1975~~~~~~~~~~.Quarterly at annual rates 1974:~~~~~I XI....III...XV....1975'~~~~I I I~~~~IXI...IV....1976:~~~~I II*b/.44,914 40,228 32,025 38,311 53,638 37,572 37,140 30,436 48,092 61, 160 62,828 38,232 52,332 55,328 55 456 34,400 24,790 17,425 13,244 25,903 32,603 23,904 23,856 20,440 35,412 43,396 42,040 21,712 23,264 30,216 29,680 18,000 7,209 8,706 7, 802 6, 160 10,157 4 6,564 7,152 4,892 6,032 9,400 6,380 8,304 16,544 10,936 13,352 8,800 12,915 14,095 10,979 6,247 10,878 7, 104 6, 132 5, 104 6,648 8, 364 14,408 8,216 12,524 14,176 12,424 7,600 a/Gross proceeds are derived by multiplying principal amounts or number of units by offering price.b/Based on preliminary monthly figures to June through August and forecast figures for September.
Source: Securities and Exchange Commission.
Annual SEC data are reported in various issues of the Federal Reserve Bulle-tin, 1976;quarterly data calculated from data from issues of Federal Reserve Bulletin for July and August 1976, and from monthly data for 1976 provided by SEC.
INDEX (1960=100) 240 220////200 Average price of CP8L common stock'PI 180 160////140 120~H~M 100!Rate of return on CP8L year-end common equity capital~M~M 80 60 0 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 SOURCE'TABLE 15..CIIART 15.INDEXES OF CONSUMER PRICES, RATE OF RETURN ON YEAR-END COMMON EQUITY CAPITAL'F CP<L/AND AVERAGE PRICE OF CP8t L COMMON STOCK/ANNUALLY, 1960-75 Table 15.Indexes of Consumer Prices, Rate of.Return on Year-End Common Equity Capital of CP&L, and Average Price of CP&L Common Stock, Annually, 1960-75, and June 1976 Year Consumer Price Index Rate of return on year-end common equity capital CP&L Average price of of CP&L common stock 1967=100 1960=100 Percent 1960=100 Price per sharea/lo60 100 1960.1961.1962.1963.1964.1965.1966.1967.1968.1969.1970.1971.1972.1973.1974.1975.June~~~~~~~~~~~~~~~~~~1976......
88.7 89.6 90.6 91.7 92.9 94.5 97.2 100.0 104.2 109.8'16.3 121.3 125.3 133.1 147.7 161.2 170.1 100.0 101.0 102.1 103.4 104.7'106;5 109.6 112.7 117.5 123.8 131.1 136.8 141.3 150.1 166.5 181.7 191.8 11.15 10.80 11.57 11.63 12.08 13.00 12.39 12.20 12.13 10.77 7.86 9.84 11.48 10.05 9.41 10.SOb/11.41-100.0 96.9 103.8 104.3 108.3 116.6 111.1 109.4 108.8 96.6 70.5 88.3 103.0 90.1 84.4 94.2 102.3-/20.06 27.39 28.36 33.52 39.11 45.33 45.03 40.58 38.38 , 34.80 26.09 25.13 26.98 24.51 16.00 16.46 18.87 100.0 136.5 141.4 167.1 195.0 226.0 224.5 202.3 191.3 173.5 130.1 125.3 134'.5 122.2 79.8 82.1 94.1 a/Annual average of monthly averages of highs and lows.b/Twelve months ending June 30, 1976.Source: CPI--U.S.Department of Labor, Bureau of Labor Statistics-.
Rate of return and stock prices--Carolina Power and Light Company.
CHART 16.RELATIONSHI P OF YEAR-END MARKET PRICE TO YEAR-END BOOK VALUE OF CONNON STOCKy CP<Lg ANNUALLY'960-75 DOLLARS 50 40 Year-end market price.per share 35 30 25 20 Year-end book value per share 15 10 5 0 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 I SOURCE'.TABLE I6~
RRN Table 16 Page 1 of 1 Table 16.Relationship of Year-End Market Price to Year-End Book Value of Common Stock, CPGL, Annually, 1960-75, and 12 Months Ending June 1976 Year Year-end market price per share Year-end book value per share Ratio of year-end market, price to book value dollars--------1960~~~~~~~'o i~~196 1~~~~~~~~~~~1962 1 963~~~~~~~~~~~1 964~~~~~~~~~~~1965 1 966~~~~~~~~*~~~1 967~~~~~~~~~~~1 968~~~~~~~~~~~1 969~~~~~~'~~~~1 970~~~~~~~~~~~1971~~~~~~~~~~~1 97'2~~~~~~~~~~~1 973~~~~~~~~~~~1 974~~~~~~~~~~~1 975~~~~~~~~~~~June 1976......
22.25 29.38 31.19 35.38 42.38 48.50 44.25 40.88 36.75 32.50 26.25 25.00 29.75 21.13 10.88 20.00 21.13 10.35 11.19 11.65 12.16 13.29 13.91 15.16 15.73 16.38 17.95 18.35 19.05 22.04 22.69 23.37 22.10 22.56 2.15 2.63 2.68 2.91 3.19 3.49 2.92 2.60 2.24 1.81 1~43 1.31 1.35 0.93 0.47 0.90 0.94 Source: Carolina Power and Light Company.
HA T I7.INDEXES OF RATES OF RETURN ON YEAR-END COMMON EQUITY AND OF COMMON TO K MARKET PRICES PER SHARE, MOODY S 24 PUBLIC UTILITIES AND CPSLi ANNUALLY, 1960-75 INDEX (1960=100) 240 220 200 CPKL common stock price 180 160 140~W~W bloody's common stock price 120 100 80 Hoody's rate of return I on year-end common equity~~~M~~~~60 0'P8L rate of return on~year-end common equity 1960 61 62 63 65 65 66 67 68 69 70 71 72 73 74 75 76 SOURCE'TABLE Ij.
RRN Table 17 Page 1 of 1 Table 17-.Indexes of Rates of Return on Year-End Common Equity and of Common Stock Market Prices Per Share, Moody's 24~Public Utilities and CPGL, Annually, 1960-75 (Index: 1960=100)Moody's 24 public utilities CPGL Year Rate of return on year-end common equity Common stock aj price-Rate'o f return on year-end common equity Common S'tockbj price-1960........
1961...1962........
1963~~~~~~~~1964........
1965........
1966........
1 967~~~~~~~~1968........
1969........
1970........
1971........
1972........
1973~~~o~~~~1974........
1975........
100.0 100.2 104.1 105.2 107.9 114.0 117.8 118.7 112.4 111.6 105.0 105.1 107.2 102.8 101.8 100.3 100.0 129.7 131.1 147.2 155.8 167.7 147.4 145.9 140.9 135.4 113.2 120.5 114.9 102.0 69.1 73.4 100.0 96.9 103.8 104.3 108.3 116.6 ill.l 109.4 108.8 96.6 70.5 88.3 103.0 90.1 84.4 94.2 100.0'36.5 141.4 167.1 195.0 226.0 224.5 202.3 191.3 173.5 130.1 125.3 134.5 122.2 79.8 82.1 P bj Annual average of monthly averages of highs and lows.Source=Hoody's Investors Service, Inc., Moody's Public Utilit Manual.Carolina Power and Light Company.
CHART 18 RATE OF RETURN ON YEAR-END COMMON EQUITY AND INTEREST COST OF NEH LONG-TERM DEBT, CP8Lp ANNUALLY, 1960-76'ND 12 MONTHS ENDING JUNE 1976 PERCENT 15 13 12 10 Rate of return on year-end colon equity.Interest cost of neo long-term debt'.960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 SOURCE.'ABLE
.18.
RRN Table 18 Page 1 of 1 Table 18.Rate of Return on Year-End Common Equity and Interest Cost of New Long-Term Debt, CPGL, Annually, 1960-75, and 12 Months Ending June 1976 (In percent)Year Rate of return on year-end common equity[1]Interest cost of new long-term debt[2]Spread[3]=[1]-[2]1960.196 1~~~~~~~~~~~~~1962~~~~~~~~~~~~~1963~~~~~~~~~~~~1 9 64~~~~~~~~~~~1 965~~~~~~~~~~~~~1 966~~~~~~~~~~~~~1 9 67~~~~~~~~o~~~1968~~~~i~~~~~~~1969 1970 1971 1972 1973 1974~~~~~~~~~~~~~1975 11.15 10 F 80 11.57 11.63 12.08 13.00 12.39 12.20 12.13 10.77 7.86 9.84 11.48 10.05 9.41 10.50 4.92'4.54 4.50 5.18 6.45 6.87 8.85 7.78 7.81 8.10 9.88 11.27 6.23 6.26 n.a.n.a.7.58 n.a.7.21 5.75 5.26 n.a.-0.99 2'6 3.67 1.95-0.47-0.77 June 1976........
11.41 n.a.n.a.=Not applicable.
Source: Carolina Power and Light Company.
4 M M M M M M'M M M M M M M M M CHART 19.YIELDS ON GRADE A UTILITY BONDS COi'SPARED lCITH RATES OF RETURN ON YEAR-END COMMON EQUITY OF MOODY S 24'UBLIC UTILITY COMPANIES AND Of CP>Ly ANNUALLY'960-75 PERCENT 14 13 12 CPSL rate of return on year-end common equity 10 Public utilities return on year-end common equity~W Average yields Grade A public utility bonds~~~0 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 SOURCE'ABLE
- 19.
RRN Table 19 Page 1 of 1 Table 19.Yields on Grade A Utility Bonds Compared with Rates.of Return on Year-End Common Equity of Moody's 24 Public Utility Companies and of CP&L, Annually, 1960-75 (Xn percent)Year Average yields on grade A public utility bonds Return on year-end common equity[2)Spread[3 l=[2)-[ll Noody's 24 pub.util.CPGL Return on year-end common equity[4]Spread[5]=[4I-fl)1960~~~~o)~~1961........
1962.........
1963........
1964...~....1965........
1966........
1967........
1968........
1969........
1970........
1971'........
1972........
1973........
1974........
1975........
4.78 4.62 4.54 4.39 4.52 4.58 5.39 5.87~6.51 7.54 8.69 8.16 7.72 7.82 9.50 10.09 10.24 10.26 10.66 10.77 11.05 11.67 12.06 12.15 11.51 11.43 10.75 10.76 10.98 10.53 10.42 10.27 5.46 5.64 6.12.6.38 6.53 7.09 6.67.6.28'.00 3.89 2.06 2.60 3.26 2.71 0.,92 0.18, 11.15 10.80 11.57 11.63 12.08 13.00 12.39 12.20 12.13 10.77 7.86 9.84 11.48 10.05 9.4'0.50 6.37 6.18 7.03 7.24 7.56 8.42 7.00 6.33 5.62 3.23-0.83 1.68 3.76 2'.23-0.09 0.41 Source: Noody's Investor Service, Inc., Nood's Public Utilit Nanual.Carolina Power and Light Company.
W W W W W W W W W W W W CHART 20~TRENDS I N COMMON STOCK PR I CES l I NJDUSTR I ALS>UT I L I T I ES g Al JD CP~La ANNUALLY'960-75, AND MONTHLY, 1972-76 INDEX (1960=100) 240 240 220 CP8L 220 200 200 Industrials 180 160 140//Industrials 180 160 140 CPSL 120-p I 100 80 Util i ties 120 100 80 Utilities 60 60 0 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 ANNUALLY SOURCE;TABLE 20.0 1972 1973 1974 MONTHLY 1975 1976 RRN Table 20 Page 1 of 2 Table 20.Trends in Common Stock Prices: Industrials, Utilities, and CPGL, Annually, 1960-75, and Monthly, 1972-76 Price indexes (1960=100)
Year and month 400 Xndustrials-40 Utilities-a/CPaL-~Annual 1960.1961.1962.1963.1964.1965.1966.1967.1968.1969.1970.1971.1972.1973.1974..1975.~Monthl~~~~~~~~~~~100.0 117.8 110.3 123.5 145.0 157.3 153.3 166.9 180.9 180.3 153.6 182.3 204.9.202.7 156.3 162.5 100.0 128.5 126.3 138.7 149.2 162.3 145.6 145.3 141.7 133.7 116.2 126.6 121.4 114.1 83.0 87.9 100.0 136.5 141.4 167.1 195.0 226.0 224.5 202.3 191.3 173.5 130.1 125.3 134.5 122.2 79.8 82.1 1972: January...
February..
March.....
April.....
May e~~~~~~Juneau....July e~~~~~August....
September.
October..~November..
December..
1973: January...
February..
March.....
Aprlli~~~~Maye~~~~~~June July......
August....
September.
192.0 196.6 201.5 204.2 202.2 203.3 201.9 209.2 205.8 205.9 215'220.6 223.0 215.2 212.1 207.9 201.8 197.2 199.6 196.4 199.4 128.4 122.5 123.2 118.9 117.2 114.7 114.1 116.6 118.1 120.9 130.5 131.7 128.1 122.7 119.4 118.1 118.3 116.0 113.8 107.0 111.6 130.5 129'132.1 128.7 127.7 129.6 126.5 132.7 133.6 137.4 152.6 153.3 143.3 134.6 128.0 125.2 128.4 130.9 121.5 111.8 118.7 Continued--
RRN Table 20 Page 2 of 2 Table 20 (continued)
Price indexes (1960=100)
Year and month 400 Industrials-40 Utilities-CPaL-/October..November.December.1974:.January..February.March....April....May......June.....July o~~~~August...September October..November.December.1975: January..February.March....April....Ma,y o~~~~~,June~~~~~July e~~~~August...September October..November.December.1976: January..February.March....April....May o~r~~~June~~~~~July o~~~August...September~~~~~207.7 192.9 178.6 180.3"175.2 183.4 174.4 170.2 171.0 157.4 143.9 128.8 130.5 134.9 125.9 135.5 150.2 158.0 160.3 170.9 174.5 174.7 161.9 159.8 167.1 169.7 167.1'82.5 190.1 191.4 192.9 191.4 192.7 196.9 194.6*198.8 113.6 103.1 97.6 103.7 102.7 102.2 94.0 84.0 79.9 75.5 72.6 66.0 72.1 73.5 70.1 81.5 86.2 84.4 81.5 84.7 93.2 93.2 86.7 86.5 90.9 93.4 92.3 100.3 100.8 97.5 98.3 97.5 99.3 101.3 104.2 108.0 117.4 105.3 101.2 110.6 109.7 104.1 90.4 81.3 77.9 67.3 63.9 61.4 62.6 68.2 59.5 68.2 79.1 76.0 72.6 75.4 85.7 85.7 81.9 85.4 86.0 92.5 96.0 102.6 102.5 103.4 101.8 93.8 97.2 103.4 105.0 111.9 a/Source: Standard and Poor's Corporation utilities index revised and linked from 50 to 55 companies in 1966, and from 55 to 60 companies in 1972.Indexes for 400 industrials and for 40 utilities are continuations of indexes of 425 industrials and 60 utilities that: were revised by Standard and Poor's effective July 1, 1976.b/Source: Carolina Power&L ght Company.
l I I I rt*ee~ae im~~ms CHART 2I INDEXES (DEFLATED BY THE CONSUNER PRICE INDEX)OF INDUSTRIALS UTI LITI ES AND CP8,L COMMON STOC.;PRICES, ANNUALLY, 1960-75, AND HONTHLY, 1972-76 INDEX (1960=100) 220 200 180 160-CP8L I.Industrials
~I I i~i~i j I g I I'L 140 120 100'80 60 40 20-ly//Utilities Utilities J"1 CP&L Industrial s I I::j I 1 I I i'.I l j'j;.i g I~I1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 ANNUALLY 1972 1973 1974 V.ONTHLY 1975 1976 SOURCF: TABLE 21 RRN Table Page 1 of 2, Table 21.Indexes (Deflated by the Consumer Price Index)of industrials, Utilities, and CPGL Common Stock Prices, , Annually, 1960-75, and Honthly, 1972-76 Year and month Price indexes (1960=100) 400 40 Industrials Utilities CPGL Annual 1960.1961.1962 1963 1964.1965.1966.1967.1968 1969.1970.1971..1972.1973 1974.1975.~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~I~~~~~~~~100.0 116.6 108.0 119.4 138.5 147.7 139.9 148.1 154.0 145.6 117.2~133.3 145.0 135.0 93.9 89.4 100.0 127.2 123.6 134.1 142.5 152.5 132.8 128.9 120.6 108.0 88.7 92.5 85.9 76.0 49.8 48.4 100.0 135.1 138.5 161.6 186.2 212.2 204'179.5 162.8.140.1 99.2 91.6 95.2 81.4 47.9 45.2~uonthl 1972: January...
February..
Harch.....
April.....
Hay e~~~~~~June......
July o~~~~~August....
September.
October...
November..
December..
1973: January...
February..
Harch.....
April.....
Hay o~~~~~'~~138.2 140.8 144.1 145.8 143.8 144.3 142.7 147.6 144.6 144.3 150.9 153 7 154.9 148.4 145.0 141.0 136.1 92.4 87.8 88.1 84.9 83.4 81.4 80.6 82.3 83.0 84.7 91.2 91.8 89.0 84.6 81.6 80.1 79.8 94.0 92.4 94.5 91.9 90.8 92.0 89.3 93.6 93.9 96.3 106.6 106.8 99.5 92.5 87.5 84.9 86.6 Continued--
I 1 I'~)l RRiV Table Page 2 of 2 Table 21.(continued)
Year and month 400 Industrials Indexes (1960=100) 40 Utilities CPGL-/June....July o~~August..Septembe October.~~~~~r~~~~~l 1a,y~~~~June~~~~July e~~~August..Septembe October.November r~~~~December 1975: January.February March...April...May o~~~~June....July o~~August..Septembe October.November December~~~~~~r~~~~~1976: November......
December 1974: January.February March...April...132.1 133.4 129.0 130.5 134.9 124.4 114.4 114.5 109.8 113.7 107.5 103.8 103.3 94.3 85.1 75.3 75.7 77.5 71.9 77.0 84.8 88.8 89.7 95.2 96.4 95.5 88.2 86.7 90.0 90.9 89.1 77.7 76.1 70.3 73.0 73.8 66.5 62.5 65.8 64.4 63.4 58.0 51.2 48.2 45.2 43.0 38.6 41.8 42.2 40.0 46.3 48.6 47.4 45.6 47.2 51.5 50.9 47.2 46.9 49.0 50.0 49.2 87.7 81.2 73.4 77.7 76.2 67.9 64.8 70.2 68.8 64.5 55.7 49.6 47.0 40.3 37.8 35.9 36.3 39.2 34.0 38.8 44.6 42.7 40.6 42.0 47.3 46.8 44.6 46.3 46.3 49.5 51.2 January.February March...April...Mayo~~~~June....July o~~~August..Septembe 1~~~~~97.1 100.9 101.4 101.7 100.3 100.5 102.1 100.4 102.2 53.4 53.5 51.6 51.8 51.1 51.8 52.5 53.7 55.5 54.6 54.4 54.8 53.7 49.2 50.7 53.6 54.2 57.5 a/b/Source: Standard Source: Deflated and Poor's Corporation.
by CPI, 1967=100.
$/KN 220 200 C r HA~>~S~iV~i~D+'T~UT~i'Y~iFR~~G
~AC~.'I I ,I I I I 180 Cost of net generating capacity (excludes hydro)I/I I 160 140 I I I I/I 120 100 Average cost of total installed generating capacity (includes hydro)0 1960 61 62 63 64 65 66 67 68 69 70 71 72 73'14 75 76 SOURCE'TABLE
- 22.
RRN Table 22 Page 1 of 1 e Table 22.U.S.Investor-Owned Electric Utility Gonerating Capacity: Estimated Investment Costs Per Kilowatt, Annually, 1960-75 (In dollars per kilowatt,)
Year Cost of new generating capacity Average cost of total installed generating capaci,ty 1 960~~~~~~~~~~196 1~~~~~~~~~~1962~~~~~~~~~~~1963 o e~~~~~~1964~~~~~~~~~~~1965~~~~~~~~~~~1966~~~~~~~~~~1967~~~~~~~~~~1968~~~~~~~~~~~1969 o~~~~~~~~~~1 970~~~~~~~~~~~1971 e~~~~~~~~~~1 972~o~~~~~~~~1 973~~~~~~,~~~1 974~~~~~~~1975~~~~~~~o~~153 149 146 136 127 123 119 118 118 122 126 135 144 168 193 226 138 137 137 136 134 132 131 128 126 126 126 126 129 133 138 143 Note: New capacity costs exclude hydro-capacity for which comparable data are not available.
Exclusion of hydro from the average cost series would not materially affect compari-sons, because such capacity is only about 6 percent of total installed capacity.Source: RRNA estimates based on data from Federal Power Commission, Statistics of Privatel Owned Electric Utilities in the United States (1962, 1963, 1970, and 1973 eds.), Steam Electric Plant Construction Cost and Annual Production Ex enses (1973 ed.), No.22392 (June 1, 1976);Electrical Norld,"15tn Steam Station Cost Survey" (October 16, 1967), and"19th Steam Station Cost Survey" (November 15, 1975);Edison Electric Institute, StatisLicaL Yearbook, 1974 (November 1975);and~Nand-(4hitman Index of Public Utilit Construction Costs (1975).
Docket No.E-2 Sub 297 Breitling Exhibit No.1 BULLETIN NO.104 To JULY I, 3.976 THE HANDY-WHYYMAN 1NDEX u.cnstLU.Ct~()n Osts Compiled and Published by WHITMAN, REQUARDT AND ASSOCIATES Engineers-Consultants 1304 SAINT PAUL STREET BALTIMORE, MARYLAND 21202 TRENDS OF CONSTRUCTION COSTS Docket No.E-2 Sub 297 Breit ling Exhibit No.1@II'II MS/P8 COST TREND TABLES From 19l2 to July l, 19Z6' WAA IL LAO NY, 4 4 t.F CALI T.r L IDAIIO.WYO.PLAt!I Nt'4 U TAIL COLO I I T EAU DlYiS ION NIL LIIIII4 IOW4 NORTH CENT 4414 OXL4 ALCA WM~IICIL AL DiV1S IO N III L I~xl~ILL VAVA LV.p TLNM,~~g+DC r V gV H.Y.~A.0 MA VT.~..l IAAIL C4<<K Alt.SO VTH CENT TCXAT LA SOU(IA ILL ALA~A bd N 0 (D 0 Pt 0 Qo OQ 0 W PJ I g'D r.Vl Pe g rt 0' Docket No.E-2 Sub 297 Breit ling Exhibit No.l TABLE COST TRENDS OF ELECTRIC LIGHT AND POttVER COiNSTRUC-CONTINUED TION, SOUTH ATLANTIC DIVISION I949=IOO%<<W,MQ<<,, w<<<<-~--r, I I CLASSES OP CONRTRtlCTION A'NO LAROR ELE hi 8 NTS Ypc ACC.CO51 INOFS NttatRERR I~t1~2<<Total Plant All Stcam Ceneratlon
......TonlPlsnt AllllydroCencratlon
......~Toislplsnt Steam&HydroCcncration
.Total Stcam Production Plant..................
'tructures
&Improvements indoor.........,..Suucturcs St Improecmcnts Semi Outdoot......
Soitet Plant Equipment Coal Fired............
311 311 312 21 23 22 23 23 22 22 23 21 21 s)26 2I C'9 33 39 45 29 4$31 37 32 39 32 40 4)47 47 48 51 SI 46$3 47 52 5$5$49 52 45 47 47 O'7 48 48 45 53 41 41 49 50 49 49 47 5)46 5'47 45 45 godet Plant Piping lrntaltcd Turbogcnetatot Units..........
Accessory Elcctrieal Equlpmcnt.Slice.Powct Plant Equi pmcnt...Sttuctares
&Improrcmcnts
.....Ilesctor Plant Equlpmcnt......314 315 316 321 34 19 28 19 30 34 19 29 29 19 29 31 27 32 68 41$2 61 49 57 62 41 5$41 ff Total Hydraulic Productionptsnt.......
Structures
&1mprovtmcnts............
Rnetroin,Dsms,&
Watcrwsys....,...Water Whceb, Turbbws.&Ccncraton...
3)I 332 333 24 26 24'I I 3)29 2S 38 4$38 31 47 53 3$$0 59 52 39 46 52 41 37 4S 53 34 53 48 35 47 52 49 35 4 53'9)5<<'ts Turbogcneraton
...t.<<.TotalTrsntmbslon plant...........
.~Station Equrpment................"Towers&FIaturn.................
/Polesdi Fistufn~~~~~Orerhcsd Conducton&
Desires.....
" Underground Conduit...........Underground Conductors
&Desires.3$3 354 355 356 357 358 26 28 IS 31 21 22 28 29 24 IS 36 20 2S 28 29 20 35 22 24 27 28 26 20 32 22 22 28 28 21 20 34 23 23 3$)I 35 21 49 23)2 41 31 21 56 31 31 4S 46 48 32 63 41 41 53 51 49 37 68 45 46 57 57$0 41 72 48 41 SI 57 39 S4 50 39 47$2 42 31 50 47 3$49 5)43 3$53 4$50$5 47 39 53 47 42 51 5$4$42$4 47 42 Sl 56 4S 40 41 42 (g il C T Total Dbtributlon Plant.......................
'StattonEquipment
.......................,...
362 Poles.Towcn&Fisturcs......................)bt Orcrhcad Conducton&Dericcs................
365 366 Underground Conductors it Der.In Conduit~.~t Unc Trsnslonncn.....................,-,.....
368 Pad Mounted Trsnslormcn.................'...
368~1;., Mcten,installed 370<<';Street Ughdng Overhead....................
373 l..as~'"<<:'-.;
hlmtAnns&Lurnlnalrcsinststlcd....."""".
<<e>:a'Street Llghdng-Underground
.........."~""*<<'t<<;*",,:,'Bandying'h'itman Biillefiri No.10"-'~-'""'qM"~" M"'-".4'~-5'-""-s~+'-""-2$31 ig 31 23 22 s9 31 IS)6 30 32 20 35 29 32 32 24 22 35 44 32 27 44 18 20 19 48 4$4$30 32 20 34 34 31 44 19 34 33 21 49 48 47 32 6)$3 52 37 68 40 39 27 56 45 41 34 37)2$2 11 74 49 36 44 55 41 49 bl IS 55 67 55 62 19 20 24 33 n.4%<<aJtsr<<e<<<<rg<<a<<
57 58 41 72 53 59 39 54 49 fb 37 50 52 41 5$39 fl 38 78 80 71 69 51 6S SI 4g 69 47 65)8 38)8$0 57 38 53 51 58 39 53 51 58 S4 50 57 54 49 SI 42 Sl 42 SI Sl 62 fl 43 61$0 5s 46$9$0 5'I 48 f9 49's 52 f3" r 39 39 40 4$, I~~'~w,<<a 11 70 65 Docket No.E-2 Sub 297 Breitling Exhibit No.1 TABLE tc c c 47 48 48 46 45 46 48 48 49 41 41 45 50 48 41 51 46 4$4$4$4l 65 40 51 66 41 57 67 46>>62 67 48 el 4$51 36 4f 50 46 37 4$41 46 39 43 4)39 50 47 39 50 55 45 36$4 44 40 SI Sl 45 36 58 4$sl$8 46 37 64 4S 49 SI 57 4$36 56 40 48 5$42 36 48 38 49$6 3d$2 59 37 64 49 59 36 56 41 57 36 48 48 4j 49 44 49 49 48 40 48 38 dl 60 64 63 61 52 41 S9 49$6$9$1$3 41 60 S2 63 48 60 52 46 41 59 50 49$3 54 51 55 48 48~M t COST TRENDS OF ELECTRIC LIGHT AND POWER CONSTRUC-TION, SOUTH ATLANTIC DIVISION 1949"-100 ICOYTINVCD AA AcAtr%r~A t~COST INDEX NUMBERS~1 re c'43 42 43 48 47 48 54 52$4 49 48 49 50 48 50$6 53 55 5$53 55 S4 51 53 Q 62 e)63 63 63 63 bl bl 66 13 75 75 95 r 97.-I 96 85 88 81 58$9 43 40 49 45 SI 45$0 45 51 49 61 se 63 60 94" 97~91, 14 74 63 60 e)62 41 39 45 46 54 55 48 59 bl el 53 61 61 68'77 It 98 96~Se>>-,.'t 2 60 45$4 S4 47 5T 54 53 61 55 5f Q se Sf 62 64 62 66 71 Q 73 6$Q 68 68 Q 71 79 73 18 n 63 74 72 63 70 89 88 90 71 6$70)9 ll 40 37 40 40 40 38 4$45 45 46 44 4$45 41 41 48$0 48 41 f3 49 49 48 55 44 45 43 47 fl SO 48 S8 56 56$4 62 61 60 59 64 61 60 60 6S 74 74 74 Te 63 62 62 6S 65 64 66 81 86 86 90 97 9791, 97 2 t>>~~'-97r'91 t, 1001=~98"" 91 51 60 43 37 50 44 42 44 5%40 34 43 41 36 55 66 42 53 49 SI 60 43 31 Sl 4$42 56 67 49~3 55$0 46 52 bl 43 36 54 4)46 55 65 4'7 40 56 45 49 65 10 el se 65 60 51 51 61 44$1 49 41 61 69 56 60 Sl Q 70 bl f9 61 62 S6 67 67 6b 70 68 61 55 75 75 76 15 11 76 64 6$61 63 64 61 63 54 88 89 87 90 90 87 15 55 38 33 45 39 39 4$55 33 45 49 59 31 50 f3 66 42 53 S4 dT 43 5$50 60 31$1$0 62 36 54 53 6S$6$5 68 ST$9 60 63 13 56 65 64 73$9 67 68 70 10 68 76 18 75 11 ST,.~94 100 99 97 91 54 34 43 Tl 67 45 36 48 42 49 42 49 49 43 39 55 59 54$4 41 63 57 es 56 67 55 Te 64 81 75 59 60 63 63 63 72 11 67 70 67 67 75 94 96 99 95 I 92'97',I, r 42 37 59 47 4$)9 bl 48 49 41 66 Q 52 46 67 54 55 50 61 Sf 52 46 67 55 53 68 55 49 42 67 53 56 51 68 Sb 59 60 68 60 65 64 69 62 67 65 69 62 67 65 69 62 61 65 69 62 77 73 76 69 89 82 86 84 55 57 51 59 f8 59 62 6$be 58 el 69 68 72 81 47 48 S I 43 43 43 44 47 61 66 68 68 69 74 80 9223~g>>r 1 t~l Bandy-Whitman Bulletin N0.104 r
Doc et No.E-Su 7 Breitling Exhibit No.TABLE CORTIYUCD COST TRENDS OF ELECTRIC LIGHT AND POIIVER CONSTRUC-TION, SOUTH ATLANTIC DIVISION 1949=)00 COST titDCX RUMSERS CLASSES OF CORSTRUCTIO'N AND LABOR CLKMEYTS EFC ACC.1961 f II tr Total Plant All Stcam Generation
......Total Phnt-All Hydro Ccncrstion
......', TotalPhnt Steam&H)droCcneradoa
.Total Qeam Production Pleat..................
., Qnrctares&Improvements-indoor.......
...Qruetures&Improrements Semi Oatdoor.....TtoOer Plant Equi pmeat-Coal Fired............
Itoiler Hant Plplni lrutalled Turboxencrstor Units........Accessory Dcctrlcal Equlpmcnt Mhc.Power Plant Equi pmcat.311 311 312 314 315 316 100 100 100 100 100 100 100 100 100 100 100 c 104 103 104 103 102 100 105 I IO 101 107 104 I If 113 114 113 Ill 100 116 120 110 120 110 I IS 117 I IT 115 I I)102 118 12$110 123 I li 12S 124 124 121 119 I IO 123 130 I I 8 130 120 IA o 129 128 12$125 124 113 I sS 140 121 13$123 133 133 132 130 129 I I 8 134 145 124 I)7 12S'Vl o'if 143 143 146 140 l)3 152 ie)144 144 136 154 149 I)I 160 147 145 169 178 160 154 144 158 If)15$167 IS I 148 174 1$3 170 158 149 Iei 157 158 110 156 152 I)I 193 168 If9 154 160 I S9 1$9 Ie)159 152 1$3 201 159 148 156 I f9 159 158 I 66 157 147 1,82 201 159 134 157 151 159 157 160 160 149 180 144 129 158 II Sauctures&Improrcarcats
...Reactor Plaat Equtpmeat Total Hi drsullc Production Plant.......
Qrucnucs&improvements............
Reeerrolrt,Dsmt,&
Waterus)s........
Water Wbeeh, Turbines,*
Ccncrat ore...321 322 331 332 3)3 100 100 100 100 103 102 102 107 110 III 108 117 I IS 113 113 123 123 119 120 134 127 124 12l I)7 132 129 130 141 14$140 140 I el 154 147 148 178 160 151 15)187 166 156 160 190 169 1$9 164 191 I TO 157 164 195 IT I 160 169 ISS CasTurboSencratocs A 0~1 l L,';;>>',"',."2A Total Transmhshn Phnt...........
StsdonEqulpment
................
Towers&Flxtura.................
Poles&Fixtures Orerbcud Conductors
&Derkcs.....
UnderSround Conduit.............
UaderTround Conductors
&Dmkcs.353 354 3$5 356 357 358 Total Dhtrlbutioa Plant.........r...
StsthutEqu'p mt.Poke, Torers&Fixtures............
0 crbesd Conductors&
Dcrkrs......
362 364 36$UndcrSrouad Conduh~~~.....................
366 UndcrSround Conductors
&Des.-ln Conduit....
367 368 368 369 369 370 373 313 373 Une Transformers..
Psd M oust c4 Transformers.........
Scrrkes-Orerbesd...............
Servkes-Undcrxround
...........
Meters.InstaDed.Qrcet Lllhdal-Orcrhesd.........Mast Arms&Lumlnrdras Imtalle4...
Qreet Lllhdag-Underground......
100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 I CO 100 100 100 100 100 10$107 10$102 105 103 107 10l 105 102 105 103 101 105 100 105 103 100 104 103 117 121 I la 110 114 IIO 130 113 114 110 I la 109 130 I I 8 100 114 I I 6 100 114 107 121 123 120 115 120 IIS 134 12T 130 127 121 128 121 03 117 I I 5 115 120 123 123 121 12$113 04 119 I)3 I I 8 100 120 I I 7 99 I IT 108 126 100 12$IIT 103 120 I!0 112 119 I)I I)3 131 124 I)2 12$137 131 136 135 I'9 140 131 144 127 12S 124 132 131 01 129 144 124 I)7 129 144 12$100 131 118 10$127 121 128 100 142 119 I 0 I 129 100 i)e 127 02 147 147 144 140 154~141 I~I 151 156 152 148 162 14$125 If)162 lfS ISI 160 15f 123 139 142 140 1$6 14)151 148 154 145 156 151 152 136 141 143 125 148 123 02 100 ISO 124 105 135 III 129 140 100 lie 124 III ll6 121 139 136 100 141 I I 7 114 154 121 143 137 145 I 5 I 1$6 159 164 1$4 155 160 128 Iff 147 1 70 159 157 16S 130 152 139 I'l fbi 1$5 168 127 150 129 175 r 163 r 156 113-129, 149 152 1$9 lb 1 129 98 157 116 I IS 153 115 146 147 149 149."~151 IS4 ie>>63 l~".*,',-,",'.158 IS4 158 Iel Ibl F..reer,,>>,,',, 131 100 95 92 7" 153 15$I/9 s~'>>>>r~~.e 121 ill 119'>~w tT IIT I IS 117&154 114 11$iif 8";,':,9:~;'-145 146 142+;151 162 163 169 I'~a J g T"~e~',,'Handy-8'hitman Bulletin N0.104~*4>>s~~*4"s!.'co~'~eus as r a>>>ca~,sw w.a w~a~r'4L'T'"u~~'M f-~'>>8 k
Docket No.E-2 Sub 297 Breitling Exhibit No.1 r Q.~r-'ABLE!" w~rr r~Ir rw" rr I'r*'~6'949=100'ION, SOUTH ATLANTIC DIVISION~COMTlttUED
-"'COST TRENDS OF ELECTRIC LIGHT AND POPOVER CONSTRUC-"rT-,--'*1967 1963 1964 196$1966 1967 co%I Ieocx.'iUMstee 196$1969~-'910 r 1971 C~r 159 163 159 162 164 151 iei 15S ie2 159 162 164 151 182 159 164 leo 161 167 152 1$2 161 Ief I el 164 168 154 186 16)16S 164 165 170 155 Ieb 165 170 Ibb 167 171 lf6 IS9 167 173 169 168 113 1$7 190 169 174 170 171 174 1$9 193 173 179 174 173 ISO 162 194 174 181 176 174 179 162 191 119 18$1$0 179 182 ief 202 183 190 184 180 188 170 204 184 193 1$1 182 194 173 208 190 200 193 ISS 206 179 209 199 209 202 192 211 Ise 217 206 216 2%197 215 192 213 224 217 20$221 199 231 220 2)0 903 212 232 20$237 230 8.~'Ll r-'ii 159 k,-'-,;-.-.-'~.'"~
i~c~~,.~(>te+4 119 let IIT 152 i<tr'.204 144 131 I ho I tf 164 17$186 154 132 IS I 169 161 180 128 151 144 169 Ibb 169 128 114 93 let 123 111 152 112 142 114 204 144 131!60 176 16l 115 186 150 I22 I 8 I 169 lf2 180 127 150 141 169 166 169 127 108 93 I el 122 117 152 112 142 174 Xe 14)126 162 179 167 179 181 1$2 IK 185 113 145 18$130 152 131 173 170 173 130 101 93 166 121 111 I S4 113 145 183 20S 14)128 163 XS 146 134 ies 208 146 139 167 100 100 179 168 180 188 183 170 183 191 184 171 IS)192 100 101 i 0 I 1$4 126 186 113 lid 184 132 15$129 190 176 1$7 188 138 162 133 194 ITS I el 191 149 If3 142 113 IT I 1$6 142 116 ITS 1$9 145 178 17$174 132 17e 138 17$149 107 93 166 128 117 15$114 144 107 86 170 130 117 1$7 I I 5 146 108$9 174 136 116 167 iie 144 184 1 88 189 215 146 144 169 101 102 186 173 1$7 IS!I 0 I 166 137 19$182 164 194 1$2 162 147 1$2 Ief 180 152 109 90 180 142 I lb 1$$116 t46 192 21$Ifo 144 171 220 150!4S 173 Z2 150 177'102 10)104 10$105 106 188 17l 188 191 194 iSO 196 199 194 179 196 ol 103 104 167 137 199 1$3 164 194 150 172 140 209 1$9 171 202 1$3 162 ile 183 186 167 149 189 192 179 150 184 153 109 Sb 1$2 14$116 I f9 I I 7 I lb I IO 91 189 154 111 162 124 153 194 197 IIO 174 ll3 210 192 172 20)154 169 151 192 193 182 154 I I 0 91 1$9 15$111 169 129 114 198 HO 15$154 I et 2)0 151 ie2 186 23$IS I 162 189 106 109 I OS tto IO9 III 19$182 XO 206 202 188 205 207 209 19l 212 210 tie 12i I2I 179 148 21$19$176 XIT 157 185 151 220 196 177 210 1$7 186 153 m 202 114 217 147 113 ife 19f XO 17$159 196 21f 179 ie2 202 210 IS)151 188 157 192 147 114 91 196 158 I IT i72 119 176 116 95 212 Ibb 120 172 121 169 119 96 207 172 121 173 122 162 206 XS 216 239 15$167 19$113 114 217 206 219 221 125 192 1$6 23$210 178 151 18f 167 210 218 XO 151 iie 91 2te 179 126 182 124 169 246 ISS 173 203 lie 11$222 21)224 223 203 159 240 22S 19)242 166 197 Iro 22S 238 213 1 66 114 91 Q6 190 127 187 127 113 24$2$0 162 176 208 210 171 186.211 120 122 124 121 22S 2 IS 230 232 234 221 23$242 210 I el 245 231 211 248 111 217 166 25t 2)7 218 259 186 205 I)I 2)2 256 213 17$240 267 216 177 229 186 Ill 91 257 192 121 199 145 197 I IS 93 270 203 134 153 204 247 270 126 132 218 176 191 227 I)I 132 241 232 242 244 22$173 260 244 227 214 145 21$I 8 1 241 283 241 14$116 288 20$t)$217 I S9 216 134 298 19S r 273:r 247 245 L~prA~253 f 184'"+IIT PP'-'5 298"'-7"~~rr" e~-'25"-;211 f 219 rrr r~'iei p-rrr~~man Bulletin'E=Handy-8'hit N0.104,4-;.,~r, r w 0 rr+p~
Docket No.E-2 Sub 297 Breitling Exhibit No.1~4 TABLE Coi-TINUED COST TRENDS OF ELECTRIC LIGHT AND POWER CONSTRUC-TION, SOUTH ATLANTIC DIVISION l949=l00 ERS COST INDEX NUMB ClASSES OF CONSTRVCTION ANDI<<atrOR EEESIENTet FFC ACC.1972 1913 1974 1915 1976 C ve C Total Plant-All Stcam Ccncradon......TOLI Plant AB H)dro Ccneratlon
......Total Plant-Steam
&Hldro Cenerstlon
.238 2S I 242 247 260<<51 2$1 265<<255 260 27$313 278 293)30 265 280 31$347 364 35)367 3$2 373 377 387 3$$-S9$3$2 392 Total Stam Production Pbnt..................
Structures
&Improvements-Indoor............
Structura&Improvements-Semi Outdoor.....BoOer PLot Eqdpmcnt-Coal Fired............
311 311 312 2)l 267 233 258 24$284 262 241'90 2$4 270<<2$$304 27$265 303 317 351 282 11$290 131)32 371 370 371 352 3ll$171 397 362)$6 364 409 31)395 310 427 Boiler Plant Plpln$Installed...Turbo$cncrstor Units..........
Acccssorl Elcctrlal Equipment.hlbc.Pouct Plant Kqulpmcnt...)14 31$316 309 198 202 241)lb 205 1$2$1 328 206 219<<2$7 329 336 371 214 217 237 220 234 251 265 27$106~II 248 288 333 41$<<76 300 43$292 31$354 458 295 323 363 Structures*
Improvements
...Reactor Plant Kqufpmcnt....121 3<<4 144 142 1$0 145 1$5 149 163 169 153 15$1$6 175 240 189 206 19$206 209 I)215 L!L I!L!Ii Il LI 44~-4 44 4 f/4<<er f e~L-:-Total Hides ullc Production Plant.......
Strucesrcs
&Improvements............
Rcservdn, Dame,&Wateruals........
Water Wheeb, Turblncs,&Ccncraton...
Cas Turbo$eoerators Total Transmbskur Plant...........
Ststkn Equipment Touen&Flsturcs~Pdes&Raures.Overhead Conducton&Devkcs~....Under$round Conduit.............
Under$round Conductors&
Devka.Total Dbtrtbutbn Plant..........
Sation Equipment Poles, Ton en&Flsturcs.........Overhead Conducton&Dcvkcs...Undcr$roond ConduitUndcrlround Conduct on&Dcv.-ln Conddt....
Uoe Trsnsformen.
Psd Mounted Transformers.........
Servkcs Ovahesd Servkcs-Undalround
...........
Mctcn, Installed.Street USbthr$-Overhead.........blast Arms&14nninalrcs lnstrdied...
Street UShdn$Undcr$round......
3)l 332 333 353 S54 355 356 357 358 362 364 16$366 367 368 368 369 369 370 373 313 373 210 267 272 268 282 2S4 2$4 276 241 171 287 254 247 333 187 246 177 29$270 244 346 197 234 176 264 304 241 181 281)09 268 190 28$204 I I v 96 304 222 139 222 162 223 114 98 324 246 14<<233 168 23S 136 137 2S9 290 93 279 137 2S2 182 312 278 244 352 202 246 185 90 312 293 199 I IS 9$327 249 140 231 169 239 305 311)Ot 311 312 321 287 302 352 351 3$9 329 261 186 321 313 248 359 206 279 X4)39 345 254 373 244 321 215 40$)96 291 406 299 257 274 192 213 318 351 315 32$30$241 399)60 300 313 199 219 315 261 115 97 330 2S4 140 237 170 236 115 100 344 304 142 247 177 243 124 102 3$$314 ISO 291 200 292 137 l)S 142 3$0 317 389 353 395 3$$401 377 395 386 398 391 407 395 401 411 164)62 211 451 44$329 433 301 3$1 2$4 466 4$6)67 449 2$6 394 292 4$3 449 399 470<<9<<40$291 461 4$4 423 4$7 307 343 272 4$)412 363 2$S 471 4$1 371 290 463 490 379 291 467 514 370 262 37$26$3$$274 137 103 3$7 320 163 329 228 319 154 101 404"92 116 372 247$70 153 10)42)100 1$4 6 315 151 104 4))316 181 399<<91 396 181 199 199 t r e-4 4 4 Li 1,.26,..., 313 350 3$1 361 377 416 458 465 4'*.4.."~-'.""~"=:a."~Bandy WhitmanBulletin No.204,-'=,';:;
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Breitling Exhibit No.2 Docket E-2, Sub 297 CAROLINA POWER&LIGHT CCMPANY ORIGINAL COST, TRENDED ORIGINAL COST AND TRENDED ORIGINAL COST LESS DEPRECIATION OF ELECTRIC PLANZ IN SERVICE AT JUNE 30, 1976 EBASCO SERVICES INCORPORATED 100 CHURCH STREET NEW YORK NOVEMBER 1976 I Breitling Exhibit No.2 Schedule 1 Page 1 of 3 CAROLINA P(PER&LIGHT COMPANY
SUMMARY
OF ORIGINAL COST$TRENDED ORIGINAL COST AND TRENDED ORIGINAL COST LESS DEPRECIATION FOR ELECTRIC PLANT IN SERVICE AT JUNE 30, 1976 No.I I 301 Account Title Intan ible Plant Organization Total Intangible Plant Original Cost$177 329$$177 329 AT 7 1/76 PRICE LEVEL Trended Original Cost IV Trended O.C.Less Deor.177 329$177 329 177 329$177 329 310 ,I""'14'16 Steam Production Plant Roxboro No.1 and No.2 Asheville No.2 Sutton No.3 Land and Land Rights Structures and Improvements Boiler Plant Equipment Turbogenerator Units Accessory Electric Equipment Miscellaneous Power Plant Equipment$9,188,213 44,260,263 182,424,177 65,289,405 17,331,240 3 076 742$9,188,213 70,641,515 309>550,823 104,880,848 28,491,721 4 873 893 9,188,213 58,728,763 256,113,807 85,444,118 23,592,889 4 002 895 I11 12 14 315'16 Total Other Steam Production Plant Land and Land Rights Structures and Improvements Boiler Plant Equipment Turbogenerator Units Accessory Electric Equipment Miscellaneous Power Plant Equipment Total Other Steam Production Total Steam Production Plant 6321 570 040 6 527 627 013 6437 070 685 3,817,759 29,969,450 115,183,339 62,546,892 14,682,512 3 101 950$3,817,759 87,812,285 278,8953262 139,559,896 32,745,463 7 491 075 3,817,759 35,712,053 145,822,898 63,929,843 17,257,807 3 767 787$229 301 902$550 321 740 S270 308 147$550 871 942$1 077 948'753$707 378 832 20 21 22 323 Nuclear Production Plant Land and Land Rights Structures and Improvements Reactor Plant Equipment Turbogenerator Units Accessory Electric Equipment Miscellaneous Power Plant Equipment Total Nuclear Production Plant 4,511,650 156,563$434 163,733,461 79,395,550 57,609,626 8 599 989$470 413 710$4,511,650 170,211,371 189,342,780 97,990,954 66,381,979 10 135 687$4,511,650 1573319,153 174,763,555 88,104,618 61,704,864 9 249 704 Breitling Exhibit No.2 Schedule 1 Page 2 of 3 CAROLINA POWER&LIGHT CCNPANY
SUMMARY
OF ORIGINAL COST, TRENDED ORXGXNAL COST AND TRENDED ORIGINAL COST LESS DEPRECIATION FOR ELECTRXC PLANZ IN SERVICE AT JUNE 30, 1976 AT 7 1/76 PRICE LEVEL Account Title Original Cost IIX Trended Original Cost IV Trended O.C.330:R 333'34 336 H draulic Production Plant Land and Land Rights Structures and Improvements Reservoirs, Dams and Waterways Waterwheels, Turbines and Generators Accessory Elec"ric Equipment Miscellaneous Power Plant Equipment Roads, Railroads and Bridges$2,124,615 2,102,428 15,525,447 5,065,427 1,077,527 207,472 8 259 2,124,615 16,9350145 153,564,884 42,441,970 4,970,525 780,570 64 222 2,124,615 6,8207931 78,159,940 16,482,991 913,229 92,951 44 312 Total Hydraulic Production Plant$26 ill 175$220 881 931$104 638 969 40 41 42 43 44 45 346 Other Production Plant Land and Land Rights Structures and Improvements Fuel Holders, Producers and Access.Prime Movers Generators Accessory Electric Equipment Miscellaneous Power Plant Equipment 246,907 7,767,789 1,413,414 25,934,138 11,921,708 2,526,515 3 127 082 246, 907 100438,582 21074,762 39,889,538 17,419,593 3,858,989 4 564 883$246,907 9,048,934 1,663,625 30,102,554 14,085,997 2,932,998 3 712 056 Total Other Production Plant$52 937 553$78 493 254$61 793 071 g,so 352 1-354$55-359 Transmission Plant Land Land Rights Structures and Improvements-Struc.-Clearing Station Equipment Towers and Fixtures Poles and Fixtures Overhead Conductors and Devices Roads and, Trails Total Transmission Plant 2,094,884 29,410,235 2,842,792 7,291,064 93,798,288 16,984,186 34,008,024 64,276,718 16 915 250 723 106$2,094,884 29,410,235 7,289,034 25,780,875 168~484>046 47,193,956 64,973,221 147,170,390 46 293 492 442 934 2,094,884 26,038,482 4,263,342 171307,002 128,097,013 30,602,028 49,958,525
'109,080,978 35 769 367 478 023 l I Breit ling Exhibit No.2 Schedule 1 Page 3 of 3 CAROLINA POMER&LIGHT CV;1PANY
SUMMARY
OF ORXGINAL COST, TRENDED ORIGINAL COST AND TRENDED ORIGINAL COST LESS DEPRECIATXON FOR ELECTRIC PLANZ IN SERVICE AT JUNE 30, 1976 AT 7 1/76 PRICE LEVEL Account Title Original Cost IIX Trended Original Cost IV Trended O.C.Less Deor.V 360 3 6 Distribution Plant Land Land Rights Structures and Improvements-Structures-Clearing Station Equipment Poles, Towers and Fixtures Overhead Conductors and Devices Underground Conduit Underground Conductors and Devices Line Transformers Services Meters Installations on Customers'remises Leased Property on Customers'remises Street Lighting and Signal Systems Total Distribution Plant$2,396,409 13,608,190 3,487,757 9,157,696 81,881,937 72,519,642 82,124,021 2,831,878 12,244>413 115,624>312 34,733,283 29,041,902 4,073,161 79,541 9 589 604 2,396,409 ,13,608,190 7,737,978 27,808,460 143,546,481 188,231,700 229,990,757 4,700,146 16,649,167 149,627,897 68,668,347 45,502,438 7,321,198 166,218 19 320 114$2,396,409 11>682>312 6,069,273 20,462,193 118,785,212 108,360,181 159,649,692 3,903,621 14,773,948 107,723>155 43,091,139 27,056,884 4,432,315 26,510 12 150 102 473 393 746$925 275 500$640 562 946 390 1 2 3 3 4 5 6 397 General Plant Land and Land Rights Structures and Improvements Office Furniture and Equipment Transportation Equipment Stores Equipment Tools, Shop and Garage Equipment Laboratory Equipment Power Operated Equipment Communication Equipment Miscellaneous Equipment 607,293 5,326,581 3,950,447 9,136,851 367,774 1,271,979 2,161,356 182,047 4,910,279 308 719$607,293 10,945,182 5,823,945 9,136,851 565,914 2,257,476 2,780,597 278,660 4,910,279 308 719 607,293 7,834,643 4,268,347 6,049,732 388>010 1>725,817 2,321,713 171>585 4,118,422~257 828 Total General Plant TOTAL ELECTRIC PLANT XN SERVICE 8>>$>>>>~$$1 852 851 887$3 371 409 038$2 405 426.104 CAROLINA POWER 6 LIOHT COMPANY SUPPLEMENTARY DATA Acct, No.301 Account Title II Intan ible Plant Organtzatfon Steam Production Plant Roxboro No.1 and No.2, Asheville No.2 Sutton No.3 Not Trended TREND SOURCE Average Life and Curve Sha e IV Net Ssls-X 310 311 312 314 315 316 Land and Land Rights Structures and Improvements Boiler Plant Equipment Turbogenerator Units Accessory Electric Equipment Miscellaneous Power Plant Equipment Not Trended Handy-Whitman Handy-Whitman Handy-Whitman Handy-Whitman Handy-Whitman Table Table Table Table Table 6 Line 6 Line 6 Line 6 Lfne 6 Line 7-Structures and Improvements 8-Boiler Plant Equipment ll-Turbogenerator Units 12-Accessory Electrical Equipment 13-Mfscellaneous Power Plant Equipment 30R3 30R3 30R3 30R3 30R3 (3)(3)0 0 0 310 311 312 314 315 316 Other Steam Production Land and Land Rights Structures and Improvements Boiler Plane Equipment Turbogenerator Units Accessory Electric Equipment Miscellaneous Power Plant Equipment Nuclear Production Plant Not Trended Handy-Whitman Handy-Whitman Handy-'Whitman Handy-Whitman Handy-Whitman Table Table Table Table Table 6 Line 6 Line 6 Line 6 Line 6 Line 7-Structures and Improvements 8-Boiler Plant Equipmenc 11-Turbogenerator Units 12-Accessory Electrical Equipment 13-Miscellaneous Power Plant Equipment 35R4 35R4 35R4 35R4 35R4 (2)(2)0 0 0 320 321 322 323 324 325 Land and Land Rights Structures and Improvements Reactor Plant Equipment Turbogenerator Units Accessory Eleccrfc Equfpment Miscellaneous Power Plant Equipment Not Trended Handy-Whitman Handy-Whitman Handy-Whitman Handy-Whitman Handy-Whitman Table Table Table Table Table 4 Line 6 Line 6 Line 6 Line 6 Line 1-Reinforced Concrete Buildings 16-Reactor Plant Equipmenc ll-Turbogenerator Units 12-Accessory Electrical Equipment 13-Miscellaneous Power Plant Equipment 25R3 25R3 25R3 25R3 25R3 (9)(9)0 0 0 MVl W Ol O 00 m'o oo r.o o~C e 0 o m pl 4)I-I tn x I I I I I I CAROLINA POWER&LICHT COMPANY SUPPLEMENI'ARY DATA Account Title TREND SOURCE Average Lffe and~C*Sh*IV Net~Sl e-330 331 332 333 334 335 336 H draulic Productfon Plant Land and Land Rights Structures and Improvements Reservoirs, Dams and Waterways Watcrwheels, Turbines and Cenerat ors Accessory Electric Equipment Miscellaneous Power Plant Equipment Roads, Railroads and Bridges Not Trended flandy-Whitman Table 6 Line 20-Structures and Improvements Handy-Whitman Table 6 Line 21-Reservoirs, Dams and Waterways Handy-Whitman Table 6 Line 22-Waterwheels, Turbines and Generators Handy-Whitman Table 6 Line 12-Accessory Electrical Equipment lfandy-Whitman Table 6 Line 13-Miscellaneous Power Plant Equipment Engineering News Record-Construction Cost Index Various: Lives (Calculated by Plants)0 0 0 0 0 0 340 341 342 343 344 345 346 Other Production Plant Land and Land Rights Structures and Improvements Fuel)folders, Producers and Accessories Prfme Movers Generators Accessory Electric Equfpment Miscellaneous Power Plant Equipment)landy-Whf tman Table lfandy-Whitman Table Handy-Whitman Table Handy-Whitman Table Handy-Whitman Table 6 Line 26 6 Line 26 6 Line 26 6 Line 26 6 Line 26-Cas Turbogenerators
-Cas Turbogenerators
-Cas Turbogenerators
-Gas Turbogenerators
-Cas Turbogenerators Not Trended llandy-Whitman Table 6 Line 26-Gas Turbogenerators 25R3 2 5R3 25R3 25R3 25R3 25R3 0 0 0 0 0 350 352 353 354 355 356 359 Transmfssfon Plant Land Land Rights Structures and Improvements
-Struct.-Clearing Station Equipment Towers and Fixtures Poles and Fixtures Overhead Conductors and Devices Roads and Trails Not Trended Not Trended Handy-Whitman Table 6 Line 6 Handy-Whitman Table 4 Line 13 llandy-Whitman Table 6 Line 30 llandy-Whitman Table 6 Line 31 Handy-Whitman Table 6 Line 32 Handy-Whf.tman Table 6 Line 33 Engineering News Record-Cons-Structures and Improvements
-Co000on Labor-Station Equipment-Towers and Fixtures.-Poles and Fixtures-Overhead Conductors and Devices truction Cost Index 75R3 55R3 75R3 40R2 50R1 30L1 40R2 75R3 0 0 0 3 0 0 0~u co bf 0l O t1 00 C'cl m o n Q C 0 o 00 M 4J M X 0't 0 CAROLINA POWER 6 LIGHT COMPANY SUPPLEMENl'ARY DATA 360 361 362 364 365 366 367 368 369 370 371 372 373 Account Title Distribution Plant Land Land Rights Structures and Improvements
-Struct.-Clearing Station Equipment Poles, Towers and Fixtures Overhead Conductors and Devices Underground Conduit Underground Conductors and Devices Line Transforeers.
Services Meters Installations on Customers!
Premtses Leased Property on Customers'rem.
Street Lighting and Signal Systems Not Trended Not Trended Handy-Whitman Table Handy-Whitman Table Handy-Whitman Table Handy-Whitman Table Handy-Whitman Table Handy-Whitman Table Handy-Whitman Table Handy-Whitman Table Handy-Whitman Table Handy-Whitman Table Handy-Whitman Table Handy-Whttman Table Handy-Whitman Table 6 Line 4 Line 6 Line 6 Line 6 Linc 6 Line 6 Line 6 Line 6 Line 6 Linc 6 Line 6 Line 6 Line TREND SOURCE 6-Structures and Improvements 13-Common Labor 39-Station Equipment 40-Poles, Towers and Fixtures 41-Overhead Conductors and Devices 43-Underground Conduit 44-Underground Conductors and Devices 46-Line Transformers 48-Services-Overhead 50-Meters, Installed 51-Street Lighting-Overhead 46-Line Transformers 51-Street Lighting-Overhead Average Life and~Ce Sh*IV 75R3 55LO 75R3 35LO 30R2 35L1 50R3 35L1 25R2 25R2 30R3 10R1 25R2 20R2 Net Seel el-S 0 0 0 3 0 4 0 7 8 0 0 6 0'2 389 390 391 392 393 394 395 396 397 398 General Plant Land and Land Rights Structures and Improvements Office Furniture and Equipment Transportation Equipment Scores Equipment Tools, Shop and Garage Equipment Laboratory Equipment Power Operated Equipment Communication Equipmcnt Miscellaneous Equipment Not Trended Handy-Whitman Table 6 Line 6-Structures and Improvements Marshall&Swift-Office Equipment Not Trended Marshall&Swift-Warehouse Equtpeent Marshall&Swift-Metalworking Equipment Handy-Whitman Table 19 Line 20-Meters Marshall&Swift-Contractors Equipment Not Trended Not Trended 55R2 20L1 8L3 25L3 40L1 40R3 12L3 25L1 30L1 0 3 15 0 0 0 7 0 eu Cll OS SS n<00 ss n CL n Seh C 0~eh 00 M SeSM W X o'o Bradshav Exhibit No.1 Page 1 of 12 Exhibit J CAROLINA POWER 6 LIGHT COMPANY BALANCE SHEET June 30, 1976 STATEMENT OF INCOME AND STATEMENT OF RETAINED EARNINGS FOR THE TWELVE MO~iS ENDED JUNE 30, 1976 CAROLINA POWER 6c LIGHT*COMPANY BALANCE SHEET, I June 30, 1976 Page 2 of 12 ASSETS Electric Utility Plant: Electric utility plant other than nuclear fuel: In service Held for future use Construction work in progress.$1,852,851,887 9,427,721 725 359 742 Total Less accumulated depreciation 2,587,639,350 326 073 470 Net 2 261 565 880 Nuclear fuel: In service In process and other Total Less accumulated amortization Net 33,432,734 44 388 446 77,821,180 25 739 649 52 081 531 Electric utility plant-net 2 313 647 411 Other Property and Investments 4 491 568 Current Assets: Cash in banks Special deposits for dividends, interest, etc.Working funds Temporary cash investments Accounts receivable, net Materials and supplies: Fuel Other Prepayments, etc.Total current assets 11,673,562 23,850 152,415 1,000,000 32,636,332 67,392,686 18,902,445 3 257 354 135 038 644 Deferred Debits: Accumulated deferred income taxes Unamortized debt expense Other 6,781,871 1,477,080 8 307 905 Total deferred debits 16 566 856 Total 2 469 744 479 See Notes to Financial Statements.
I j'l CAROLINA POWER&LIGHT COMPANY BALANCE SHEET June 30, 1976 Page 3 of 12 LIABILITIES Capital Stock and Retained Earnings: Preferred stock, without par value, cumulative (entitled upon liquidation to$100 a share)(Note 2)Common stock subscribed Common stock, without par value (Note 2)Retained earnings (Note 1)Total capital stock and retained earnings Long-Term Debt (Note 3)336,018,400 99,626 567,406,155 178 060 053 1 081 584 234 1 105 361 294 Current Liabilities:
Notes Payable: Banks, Other Accounts Payable: Construction contract retentions Other Customers'eposits Taxes accrued Interest accrued Dividends declared Other 51,010,961 5,512,573 21,012,515 4,021,581 33,013,250 20,209,982 26,630,180 3 598 385 Total current liabilities 165 009 427 Deferred Credits: Customers'dvances for construction Investment tax credits Other 250,111 28,890,031 910 003 Total deferred credits Reserve for Injuries and Damages Accumulated Deferred Income Taxes Commitments and Contingencies (Note 4)30 050 145 843 516 86,895,863 Total 2 469 744 479 See Notes to Financial Statements.
~-5~l CAROLINA POWER&LIGHT COMPANY STATEMENT OF INCOME For the Twelve Months Ended June 30, 1976 Page 4 of 12 OPERATING REVENUES-ELECTRIC$645,386,940 OPERATING EXPENSES: Fuel Purchased Power Other Operation Maintenance Depreciation Taxes: Taxes other than income Federal income State income Provision for deferred income taxes Income taxes deferred in prior years (credit)Investment tax credit adjustments:
Amount deferred Amortization of amounts deferred (credit)216,717,095 5,665,429 78,527,732 36,611,664 55,782,236 49,163,147 37,153,014 5,252,661 8,139,252 662,966 22,645,311
~*OPERATING INCOME Total operating expenses 514 593 449 130 793 491 OTHER INCOME: Allowance for funds used during construction Income taxes-credit Other income (deductions)
-net Total other income 53,030,675 16,781,810 924 769 70 737 254 GROSS INCOME 201 530 745 INTEREST CHARGES: Long<<term debt Amortization of debt premium, discount and expense-net Other 88,988,897 321,960 967 660 Total interest charges NET INCOME PREFERRED STOCK DIVIDEND REQUIREMENTS EARNINGS FOR COMMON STOCK AVERAGE COMMON SHARES OUTSTAY ING EARNINGS PER SHARE OF COMMON STOCK 90 278 517 111,252,228 26 925 908 84 326 320 30 942 394 2.73 S ee No tes to F inancial S tatements.
~~~~~j 0'l CAROLINA POWER 6 LIGHT'OMP%VI STATEMENT OF RETAINED LQQKNGS For the Twelve Months Ended June 30, 1976 Page 5 of 12 Balance, July 1, 1975 Add-Net income for the period Total$145,858,456 111 252 228 257,110,684 Deduct: Cash dividends declared:$5 preferred stock Serial preferred stock Preferred Stock A Preference Stock A Common Stock (At Annual$1,186,295-$4.20 Series 420,000-$5.44 Series 1,360,000-$9.10 Series 2,730,009-$7.95 Series 2,782,525-$7.72 Series 3,860,000-$8.48 Series 5,512,000-$7.45 Series 3,725,000-$2.675 Series 5,350,079 Rate of$1.60 a Share)51 332 620 Total Capital stock expense Federal income tax deferred in prior years$78,258,528 129,137 662 966 79 050 631 Balance, June 30, 1976 (including
$6,429,924 restricted for future Federal taxes on income-Note 1)178 060 053 See Notes to Financial Statements.
f CAROLINA POWER 6r LIGHT COMPANY NOTES TO FINANCIAL STATBKNTS June 30, 1976 Page 6 of 12 1.SKQfARY OF S'IGNIFICANT ACCOUNTING POLICIES S stem of Accounts.The accounting records of the Company are maintained in accordance with uniform systems of accounts prescribed by the Federal Power Commission (FPC)and the regulatory commissions of North Carolina and South Carolina.Electric Utili Plant.Electric utility plant is stated at original cost.The cost of additions, including replacements of units of property and betterments, is charged to utility plant.The Company includes in the cost of such additions an allowance for funds used during construction (8%).Maintenance and repairs of property and replacements and renewals of items determined to be less than units of property are charged to maintenance expense, The cost of units of property replaced or renewed plus removal costs, less salvage, is charged to accumulated depreciation.
Utility plant is subject to the lien of the Company's mortgage.Allowance for Funds Used Durin Construction.
In accordance with the uniform systems of accounts prescribed by regulatory authorities, an allowance for funds used during construction is included in con-struction work in progress and credited to income, recognizing that funds used for construction were provided by borrowings, preferred stock, and common equity.This accounting practice results in the inclusion in utility plant in service of amounts considered by regulatory authorities as an appropriate cost for the purpose of establishing rates for utility charges to customers over the service lives of the property.De reciation and Amortization.
Depreciation of utility plant, other than nuclear fuel, for financial reporting purposes is computed on the straight-line method based on estimated useful lives and charged principally to depreciation expense.Depreciation provisions as a percent of average depreciable property other than nuclear fuel approximated 3.3%.Effective as of October 1, 1975 the Company adopted revised depreciation rates generally reflecting shorter estimated useful lives for utility plant, which increased the provision for depreciation by$7,644,000 for the twelve months ended June 30, 1976.Amortization of nuclear fuel ($12,491,,000) is computed on the unit-of-production method and charged to fuel expense.Deferred Fuel Costs.In 1974, pursuant to state regulatory commission orders, and in January 1975, pursuant to FPC order, the Company put into effect automatic fossil fuel adjustment clauses to recover increased fuel costs.The provisions of the clauses result in a time lag between the date increased fuel cost is incurred and the date such cost is billed to customers.
To properly match increased i f Page 7 of 12 fuel costs with the related revenues, the Company defers, except for North Carolina retail operations, increased fuel cost when incurred and expenses it in the month the related revenue is billed.Beginning September 1, 1975 for North Carolina retail operations, the fossil fuel adjustment clause was replaced by an"approved fuel charge" adjustment to basic rates (which results in billing increased fuel costs on a current basis)and the Company was authorized to recover the defexred fossil fuel inventory costs accumulated at August 31, 1975 by a temporary rate surcharge over an approximate twelve-month period, with matching amortization of the deferred costs (see Note 6).In May 1976, the Company adopted new wholesale rates pursuant to FPC order which included higher'uel costs in basic rates and established the fuel adjustment clause base at the higher, and essentially current, fuel cost level.Income Taxes.Deferred income tax provisions are recorded only to the extent such amounts are currently allowed for rate-making purposes.In March 1976 (applicable to retail operations) and May 1976 (for wholesale operations), the Company began providing fully for deferred income taxes applicable to all significant timing differences, which resulted in increased income tax expense for the twelve months ended June 30, 1976.These provisions coincided with the recognition of revenues from the placing into effect of new customer billing rates which reflect such costs and, therefore, net income was not materially affected.In compliance with regulatory accounting, income taxes are allocated between Operating Income and Other Income, principally with respect to interest charges related to construction work in progress.See Note 5 with respect to certain other income tax information.
Necessity Certificates permitted amortization over 60-month periods, for Federal income tax purposes, the cost of certain plant facilities completed during the tax period 1952 through 1958.Amounts equivalent to the net reduction in federal taxes on income attributable to the excess of such amortization over depreciation ordinarily deducted were charged against income and the corresponding credit recorded in Account 216-Retained Earnings Restricted for Future Taxes on Income pursuant to orders of State Regulatory Authorities.
In the accompany-ing balance sheet, the accumulated credit of$6,429,924 attributable to such accumulated deferred taxes is included in Retained Earnings.In Financial Statements filed with'he Federal Power Commission and with the Securities and Exchange Commission, the accumulated credit for deferred Federal taxes on income is excluded from Retained Earnings and shown as"Accumulated Deferred Taxes on Income" consistent with the regulations of each of these commissions.
Investment Tax Credits.Investment tax credits generated and utilized after 1971 have been deferred and are being amortized over the, service lives of the property;substantially all credits prior to 1972 were deferred for amortization over five-year periods.At December 31, 1975, the Company had generated but not utilized investment tax credits totaling$14,600,000 (see Note 5 for prior years'ax credits eliminated in 1974 and included herein).
l j t$l 5 Page 8 of 12 1 Preferred and Preference Dividends.
Preferred and preference stock dividends declared and charged to retained earnings include amounts applicable
'to the first quarter of the following year, except for the Preferred Stock A,$7.45 Series, issued in 1973, which dividends are wholly applicable to the calendar quarter in which declared.Retirement Plan.The Company has a non-contributory retirement plan for all regular full-time employees and is funding the costs accrued under the plan.Retirement plan costs for twelve months ended June 30, 1976 were approximately
$3,504,000.
Xn 1975, the Company amended the plan by changing, among other things, vesting provisions to conform with the requirements of the Employee Retirement Income Security Act of 1974, the interest assumption from 4>%to 5%, and the amortization of the unfunded prior service cost over a period of twenty years from January 1, 1975 instead of from January 1, 1974.The effect of these changes on periodic net income is not material.At January 1, 1976, the date of the latest actuarial valuation, the unfunded prior service cost was approximately
$21 million and the actuarially computed value of vested benefits exceeded assets of the plan by an estimated$11 million.Other Policies.Other property and investments are stated principally at cost, less accumulated depreciation where applicable, except for the investment in its coal mining subsidiary which is accounted for on the equity basis.Temporary cash investments are stated at cost, approximating market value.Materials and supplies inventories are stated at average cost.The Company maintains an allowance for doubtful accounts receivable
($915,554).Bond premium, discount and expenses are amortized over the life of the related debt.2.CAPITAL STOCK Preferred Stock, without par value, cumulative:
$5 (authorized, 300,000 shares;outstanding, 237,259 shares)Serial (authorized, 10,000,000 shares):$4.20 Series (outstanding, 100,000 shares)$5.44 Series (outstanding, 250,000 shares)$9.10 Series (outstanding, 300,000 shares)$7.95 Series (outstanding, 350,000 shares)$7.72 Series (outstanding, 500,000 shares)$8.48 Series (outstanding, 650,000 shares)Preferred Stock A, authorized 5,000,000 shares;outstanding, 500,000 shares of$7.45 Series Total$24,375,900 10,000,000 25,000,000 30,000,000 35,000,000 49,425,000 64,317,500 50 000 000 288 118 400 Preference Stock, without par value, cumulative (authorized, 2,000,000 shares):$2.675 Series A (outstanding, 2,000,000 shares)47 900 000 4 l'l l Page 9,of 12 Common Stock, without par value (authorized, 60,000,000 shares): Outstanding
<<32,787,216 shares Subscribed but not issued-5,142 shares Total$567,406,155 99 626 567 505 781 At June 30, 1976, 617,088 shares of unissued common stock were'eserved for issuance under the Stock Purchase-Savings Program for Employees.
The Preferred Stock is callable, in whole or in part, at redemption prices ranging from$102 to$115 a share plus accumulated dividends.
In the event of liquidation, this stock is entitled to$100 a share plus accumulated dividends.
The Preferred Stock A,$7.45 Series, has a sinking fund requirement, commencing in 1984, to redeem 20,000 shares annually at$100 per share plus accumulated dividends.
The$2.675 Preference Stock, Series A, is presently callable in whole or in part at$27.68 per share plus accumulated dividends, unless refunding is involved in which case there are substantial limitations on redemption until April 1, 1980;and in the event of liquidation is entitled to$25 a share plus accumulated dividends.
The Company's Charter and Bond Indenture, as amended, contain provisions limiting payments of cash dividends on preference and common stock under certain circumstances.
At June 30, 1976, none of the retained earnings was restricted under these provisions.
During the twelve months ended June 30, 1976, the Company sold the following shares of capital stock: In October 1975-5,000,000 of Common Stock in a public offering;and 219,607 shares of Common Stock under the Company's Stock Purchase Savings Program for Employees.
3.LONG-TERM DEBT First Mortgage Bon 3-1/8%Series, 3-1/4%Series, 2-7/8%Series, 3-1/2%Series, ll%Series, 4-1/8%Series, 4-7/8%Series, 4-1/2%Series, 4-1/2%Series, 11-1/8%Series, 5-1/8%Series, 6-3/8%Series, 6-7/8%Series, 8-3/4%Series, 8-3/4%Series, 7-3/8%Series, ds (principal amounts): due 1979 due 1979 due 1981 due 1982 due 1984 due 1988 due 1990 due 1991 due 1994 due 1994 due 1996 due 1997 due 1998 due 2000 due 2000 due 2001$20,100,000 43,930,000 15,000,000 20,000,000 100,000,000 20,000,000 25,000,000 25,000,000 30,000,000 50,000,000 30,000,000 40,000,000 40,000,000 40,000,000 50,000,000 65,000,000 l 4 i l Page 10 of 12 7-3/4%Series, due 2001 7-3/4%Series, due 2002 7-3/4%Series, due 2003 8-1/8%Series, due 2003 9-3/4%Series, due 2004 Total Miscellaneous Promissory Notes Total Long-Term Debt (including current maturities)
Less Long-Term Debt due within one year-11-1/8%Series, due 1994 Total Long-Term Debt (excluding current maturities) 70,000,000 100,000,000 100,000,000 100,000,000 125 000 000 1,109,030,000 192 864 1,109,222,864 2 000 000 1 107 222 864 The Bond Indenture, as amended, contains requirements that addi-tional property be certified or that specific amounts in cash and/or principal amount of bonds be delivered annually to the Trustee as an improvement fund.Current liabilities do not include the current improvement fund requirements
($6,700,000 at June 30, 1976)since the Company meets such requirements by the certification of additional property.Bonds of the 11-1/8%Series, due 1994, shall be redeemed under sinking fund provisions at$2,000,000 each year commencing on December 1, 1976, at the principal amount without premium plus accrued interest.COKIITtKNTS AND CONTINGENCIES At June 30, 1976, firm commitments for construction aggregated'pproximately
$425 million plus approximately
$312 million for initial and replacement nuclear fuel.In addition, the Company has a contract with the Energy Research and Development Administration for nuclear fuel enrichment requirements through June 30, 2002, which is cancellable without penalty upon five years written notice.Payments for enrichment services are anticipated to total$133 million during the next five years.Many contracts include escalation provisions.
The Company has entered into agreements with Pickands Mather&Co.(PM), a firm engaged in owning, operating and managing mineral properties, to develop two adjacent deep coal mines in Pike County, Kentucky, each capable of producing 1,000,000 tons of coal per year over about 25 years.A subsidiary, Leslie Coal Mining Company (LC), has been formed, owned 80%by the Company and 20%by PM, to construct and develop one of the mines.Significant aspects of LC's financial position are summarized as follows (in thousands):
Total Assets 828 860 Notes Payable to Bank~26 577
'E Page 11 of 12 The Company has guaranteed the obligations of LC under the terms of bank loan agreements
($26.6 million outstanding at June 30, 1976)and a lease financing arrangement
($2.4 million obtained through June 30, 1976)which can provide up to$49.7 million in funds for the LC mine (currently estimated maximum capital cost is$50 million).The Company has further agreed to advance any other funds required by LC to cause LC to complete the mine not later than December 31, 1979.The Company-and PM have entered into coal puxchase contracts for 80%and 20%, respectively, of LC's production at prices suffici.ent to meet all of its costs.The adjacent mine is currently expected to cost approxi-mately$46.6 million.Minimum rental commitments under noncancellable leases (except for nuclear fuel)at December 31, 1975, were approximately (in thousands):
~Pa able 1976 1977 1978 1979 1980 1981-1985 1986-1990 1991-1995 Remainder ICT Generators
$3,800 3,800 3,800 3,800 3,800 19,000 19,000 19,000 13,300 Otbeae$2,800 2,400 1,400 800 700 3,400 3,100 2,300 6,300 Teaal$6,600 6,200 5,200 4,600 4,500 22,400 22,100 21,300 19,600<<Does not include rentals for building space expected to be occupied in late 1977 with annual rentals expected to approximate
$2a4 million.Rentals under a nuclear fuel lease include a component based on energy produced and another computed on the lessor's unamortized acquisition cost ($47,100,000 at December 31, 1975 and$44,100,000 at June 30, 1976).Rental payments for nuclear fuel presently under lease are estimated to approximate
$11,000,000 in 1976 and 1977 and declining each year thereafter through 1980, Under the terms of the leases for the internal combustion turbine (ICT)generators and the nuclear fuel, the Company, under certain circumstances, is contingently liable to purchase the properties from the lessors.The Company is responsible for expenses in connection with most of the leased properties, including insurance, taxes and maintenance.
Electric utility plant at June 30, 1976 includes approximately
$15 million representing cost less accumulated depreciation of four hydroelectric projects licensed by the FPC, which licenses expire in 1976, 1993 and 2008.Upon or after expiration of each license, the United States may take over the project, or the FPC may issue a new license either to the Company or a new licensee.In the event of a takeover ox'icensing to another licensee, the Company would be paid its"net investment" in the project, not to exceed fair value, plus, sevexance damages, if any.No provision for amortization reserves as required for the determination of"net investment" has been 1
Page 12 of 12 recorded as such amounts, if any, are considered immaterial.
In 1973, the Company applied for a new 50-year license for the Walters Hydroelectric Project which original license expires in 1976.A competing application has been filed by a group of rural electric cooperatives.
The Company expects that its license application will be granted.The Company is a member of Nuclear Mutual Limited, established to provide insurance coverage against property damage to members'uclear generating facilities.
The Company would be subject to a maximum assessment of about$19 million in the event of losses.In 1972, the Company committed a total of$3,450,000 for research concerning development of the Liquid Metal Fast Breeder Reactor payable in ten equal annual installments through 1981.Federal income tax returns after 1973 have not been examined.The Attorney General of North Carolina has appealed to the North Carolina Supreme Court the North Carolina Court of Appeals'ffirmance in May 1976 of an order of the North Carolina Utilities Commission (NCUC)dated December 1974 approving the Company's automatic fossil fuel adjustment clause applicable to North Carolina retail operations.
The Company recorded revenues of$71,101,000 in 1975 and$60,811,000 in 1974 pursuant to such automatic fossil fuel adjustment clause.The resolution of the matter is pending.In the opinion of the Company the validity of the fossil fuel adjustment clause will be upheld.Operating revenues for the twelve months ended June 30, 1976 include$63,867,000 subject to possible refund with interest to the extent not finally allowed by pending rate proceedings.
Total recorded revenues subject to refund with interest at June 30, 1976 pending final regulatory determinations aggregated
$89,541,000 and were billed from January 1, 1975 through June 30, 1976.Included in the balance sheet at June 30, 1976 is deferred fuel costs of$3,050,000 which is subject to FPC review and approva1 which may necessitate adjustments, if such review so requires.The Attorney General of North Carolina appealed to the North Carolina Court of Appeals that portion of the NCUC order of August 27, 1976 which authorized the Company, effective September 1, 1975, to recover through revenues over approximately twelve months deferred fossil fuel costs totaling$12,367,000 at August 31, 1975.On August 18, 1976, the Court of Appeals affirmed the NCUC order, but the Attorney General has announced that he will appeal this decision to the North Carolina Supreme Court.From September 1 through June 30, 1976, the Company recorded revenues of$11,094,000 applicable to recovery of the previously unbilled deferred fossil fuel costs.The ultimate outcome of this matter is uncertain pending the filing of an appeal by the Attorney General which is expected and final judicial determination.
Substantial environmental matters are presently pending before various governmental agencies and courts.The Company may, as a result-, incur increased construction or operating expenditures.
l X j l Bradshaw Exhibit No.2 Exhibit C Carolina Power&Light Company Original Cost of Total Electric Plant Used or Useful in the Public Service June 30, 1976 Line No.System Total As Ad'usted (2)Apportioned To North Carolina Retail 0 erations (3)2~3~4, 5~6.7.8.Plant in Service: Production Transmission Distribution (N~C.)Dis tribut ion (S.C.)General Intangible Total Plant in Service 1,447,455,380 282,605,105 413,297,853 80,838,895 31,071,325 177 329 2,255,445,887
'891,591,045 173,118,429 407,143,085 23,446,839 118 946 1,495,418,344 9.10.12.13.14.Nuclear Fuel: In S tock and In Reac tor Spent Fuel Less accumulated provision for amortization Net nuclear fuel Total Electric Plant 57,026,239 10, 352, 724 25 739 649 41 639 314 29297,085,201 26 652 080 1,522,070,424 l
~Bradshaw Exhibit No.3 Exhibit,E Carolina Power 6 Light Company Depreciation The accrued depreciation on said property as shown on Applicant's books adjusted to June 30, 1976, is as follows: Line No.Sys tern To tal (2)$Apportioned To North Carolina Retail 0 erations (3)Accumulated Provision for.Depreciation:
2~3~4.5.Production Transmission Distribution General 194,938,434 34,800,674 112,435,672 6 198 115 120,076,490 21,318,222 92,641,170 4 677 180 6.Total Accumulated Provision for Depreciation 348,372, 895 238,713,062 The method used on computing the amount char'ged to depreciation is the straight-line method.The rates used are the following:
7~8.9.10.12.13.Steam Production Plant Nuclear Production Plant Hydro Production Plant Other Production Plant Transmission Plant Distribution Plant General Plant*3.240 4.224 1.143 F 000 2.274 3.151 3.410*Composite rate for General Plant after excluding book cost of Transportation Equipment-Vehicles-Account 392.The provision for depreciation of Transportation Equipment (Automobiles and Trucks)is'based on the estimated lives thereof.The amount is charged to a clearing account and allocated to operating expenses, construction and other accounts on the basis of the use of such equipment.
l Bradshaw Exhibit No.CAROLINA POWER&LIGHT COHPAVZ STATEMENT OF REVENUE&EXPENSE ITEHS 12 Months Ended June 30, 1976 System Total Per Books Operating Revenues Operating Expenses: Operating and Maintenance Expenses Depreciation Taxes Other Than Income State Income Taxes Federal Income Taxes Provision for Deferred Income Taxes Income Taxes Deferred in Prior Years Investment Tax Credit-Net Total Operating Expenses 8645,386,940 337,521,920 55,782,236 49,163,147 5,252,661 37,153,014 8,139,252 (662,966)22 244 185 514 593 449 Bradshaw Exhibit No.5 CAROLINA POWER 6 LIGHT COMPANY
SUMMARY
OF ADJUSTMENTS For the Twelve Months Ended June 30, 1976 S stem Total 1.Adjust for cost of Management Audit ordered by the North Carolina Utilities Commission 300,000 2..Adjust for amortization of Craven County plant site 78,407 3.To charge-off expenses of Madison County plant site Adjust for normalization of hydro generation 187,816 899,394 5.Adjust wages and fringe benefits to normal year Related taxes 5,471,044 301,603 6.Adjust for postage increase 7.Adjust for nuclear property insurance 8.Adjust for Research and Development expense 147,449 1,419,151 1,979,102 9.Adjust depreciation expense to Plant in Service at June 30, 1976 Related deferred income taxes Related current income taxes 6,186,000 9,442,000 (8,918,000) 10.Adjust depreciation expense for Plant Placed in Service from June 30, 1976 through March 31, 1977 11.Adjust for F.I.C.A.tax increase 2,142,000 66,394 12.Adjust property tax to Plant in Service at June 30, 1976 Plant transferred 6-30-76 through 3-31-77 13.Adjust rate base for plant transfers June 30, 1976 through March 31, 1977 14.Adjust rate base for nuclear fuel posting error 3,675,301 616,000 71,210,000 211,565 15.Adjust working capital for additional Accounts Receivable required 16.Adjust to eliminate Fuel Deferral Revenues Expenses 2,419,000 (11,759,652)
(12,234,997)