ML18192B808
| ML18192B808 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 07/11/2018 |
| From: | Southern California Edison Co |
| To: | US Atomic Energy Commission (AEC) |
| References | |
| Download: ML18192B808 (32) | |
Text
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Southern California Edison Company annual Report
U 4 Southern California Edison Compaoy Southern California Edison Company prov'Ides electric service in a yo,ooa square-mile area of central and southern California. This'area includes nearly 8oo cities and communities with a population of more thatI yIh Inillion peopIe.
"
scE owns and opyrates, y6 hydroelectric plants, za fossil-fueled steam electric generating plants, two combustion turbine plants, one diesel electric generating plant,and operates the 8o% owned
, San Onofre Nuclear Generating Station. In addition, it operates the two coal-fired steam electric units at the g6% owned Mohave Generating Station in Nevada, and owns y8/o interest 'enerating U
in two coal-fired steam electric generating units at Four Corners, New Mexico.
The Company, incorporated in z9og under the laws of California, is a public utility subject to regulation by the California Public Utilities Commission and the Federal Power Commission.
Certafn aspects of its business are subject to regulation by other federalstate and.local agencies.
u Service Territory 4 Extra-High MONTANA, Voltage (EHV)
Transmission Lines e o CICilo, Pprtland U
>U,, ~ ' ~ ~
OREGON ID AEIO UU WYOMING r
U ~
o Salt Lake C~ty NEVADA UTAEI ColLO 0 Ul
$an Francisco
'I Kaiparowits o (proposed) 0 0
'os Vcgas 0 Four Corners 0 GOGO V. U Mohave ARIZONA NEW Ca!alina istand ~ 'an Onofro o phoenix
Annual Report x.974 Contents Letter to Shareholders Financial Review . 4 Review of Operations Statements Financial . ~ ~ ~ 0 ~ . 12 Capital Stock Price and Dividend Information . . 23 Summary of Operations and Comparative Statistics of Progress . 24 Management's Discussion and Analysis of Summary of Operations . 26 1974 1973 increase Highlights Earnings Per Share $ 4,10 $ 2.70 51.9 Common Dividends Paid Per Share . $ X.65 $ 1.56 5.8 Gross UtilityPlant (000) . $ 4r 766,175 $ 4,4S8,631 6.9 Operating Revenues (000) $ Ir4831432 $ 1 079I348 37.4 Operating Expenses (000) . $ 1rX721768 $ 84Sr308 38 7 Fuel (000) (a) . $ 505r209 $ 321 080 57 3 Taxes (000) (a) $ 222,056 $ 135,128 64.3 Net Income (000) $ 2ISr298 $ 147r731 47 8 Earnings Available for Common and Original Preferred Stock (000) $ X 82,6XO $ 118,889 53.6 Payrolls (000) $ 208,892 $ 198,181 5.4 Number of Customers . 2,691,691 2,626,492 2.5 Kilowatt-Hour Sales (000) 51,089,981 54,092,934 (5.6)
Main System Peak (kw) 9,997,000 10,253,000 (2.5)
Operating Capacity (kw) (b) . X3,494,849 13,447,095 0.4 (a) Included in Operating Expenses.
(b) Includes gg6,gSy kw available from others in xg74 and go4,6go kw in xg7y.
To Our More Than xylo,ooo Shareholders Our nation now faces critical economic and energy problems which directly affect our industry and Company. These problems are receiving increased recognition and attention, and we are encouraged that governmerit leaders have recognized that a viable electric utility industry is essential Eor energy selE-sufficiency and our nation's economic well-being.
Management's efforts during the year were concentrated on coping with inflationary pressures and escalating environmental, fuel and capital costs, while working to effect operating economies and to maintain reliable electric service to our customers.
The following paragraphs highlight the principal activities and results for the year:
X974 Earnings Total revenues of $ x.p billion, net income of $ zx8 million and earnings per share of $ 4.xo were all at record levels and all represent substantial increases over x973.
These results, however, should be viewed in perspective. The increase in earnings is attributable almost entirely to unusually favorable weather conditions record rainfall which made available more lower-cost hydroelectric power, and the availability of more natural gas fuel than had been anticipated. Such extraordinary conditions cannot be counted on to recur in x975 and, consequently, earnings for x97g are expected to be substantially less.
Dividends In March 1974, Edison's Board of Directors voted to increase the common stock quarterly dividend from 39 cents to 4z cents per share, equivalent to $ x.68 per share on an annual basis. The Company has paid dividends on its common stock each year since its incorporation in x9o9.
KWH Sales For many years, the Company experienced an annual compound growth rate of kilowatt-hour sales of 8-xo%. However, the response by our customers to the call for energy conservation, economic conditions and the escalating cost of electricity contributed to a decline in kwh sales in x974 from the preceding year. Therefore, planning for the x975-79 period, subject to frequent review, is based on a markedly reduced rate of growth as compared with the high levels of electric energy growth recorded in the x96os.
Plant Construction The lower growth rate projected for the near-term future, coupled with adequate reserve margins of generation, made it possible in x974 for the Company to defer construction schedules Eor some generating plants and related facilities and to reduce projected five-year construction expenditures by nearly $ x billion.
Despite this reduction, however, our construction budget through x979 also sub-ject to periodic review, remains high about $ 3.4 billion and there willbe a continuing requirement for relatively large amounts of external financing.
Rate Relief Recognizing a future need to attain a more adequate level of earnings, Edison filed an application in June with the California Public Utilities Commission requesting a general rate increase designed to produce a xg% return on common equity and additional annual revenues of approximately $ ygg million based upon the then anticipated x976 level of sales. We are ho'peful that public hearings can be completed and a decision issued by the latter part of z97p.
Cost Controls Edison continues to operate under rigid cost controls in order to hold the line on controllable expenses. Substantial reductions in our operating and construction budgets have been made and a freeze on hiring, in effect since December x97p, has been extended into x97g. At the end of zg74, we were operating with 4g9 fewer employees than at year-end z97g.
Organizational After many years of valued service, for reasons of health, Mr. Vaile G. Young Changes resigned from the Board of Directors on November zx. On that date, also, Mr. H.
Russell Smith, President and Director of Avery Products Corporation, was elected to the Board, and Mr. Joe T. Head, Jr., Manager of the Power Supply Department, was elected Vice President.
X975 Outlook The outlook for x97g appears particularly uncertain. Such unpredictable factors as governmental actions in response to President Ford's economic-energy pro-posals, regulatory decisions, economic conditions, weather and the degree of energy conservation by our customers could have a substantial impact ori our operations. Further, rising electric rates inevitably generate both consumer and governmental concern and lead to misunderstanding and dissatisfaction among customers who are trying to conserve.
Our fuel oil requirements for x975 are substantially covered and, barring unforeseen circumstances, we shall have adequate generating capacity to meet expected peak electric demands of our customers through x976.
In our judgment, the problems confronting electric utilities, though formi-dable, are manageable. We are planning Eor the challenges that lie ahead and counting on the continued dedicated support of our employees.
T. M. McDaniel, 7r. lack K. Horton President Chairman of the Board February zo, x975
Financial Review Earnings per Share 0 retained earnings Earnings and Earnings for the year increased to a dividends Revenues Increase $ 4.xo per share as compared with In 1974 $ 2.70 on a lower average number of shares in xg73. The primary factors benefiting I974 earnings were the exceptionally high availability and use of lower-cost hydroelectric power and increased availability of lower-cost natural gas over what had been anticipated. Lesser factors in-cluded a general rate increase which became effective in October xg73, and stringent internal cost controls.
Total operating revenues for the year ended '1974 were $ x.3 billion, up 37.4% over the $ z.z billion re-ported for xg73. Fuel cost adjust-ments and the general rate increase contributed substantially to higher revenues.
Net income for xg74 was $ 2 x8 million, up 47.8% from the previous year's figure of $ <48 million. 1/70 19/1 x9$ 2 19/3 x9g4 Kilowatt-hour sales of electric energy for the year totaled 3x billion Company Seeks Edison filed an application with the kwh, down 3.6% from xg73 sales Rate Relief California Public Utilities Commis-of 34 billion kwh, primarily reflect- sion (cr vc) on June 7, xg74, request-ing continuing customer conserva-tion efforts and reaction to higher electric rates. Among the major cus-
'o ing a general rate increase designe~
produce additional annual reve-nues of $ 33g million. The request is
~
tomer categories, residential sales predicated upon a return on rate base decreased 3.3%, while commercial of g.6% and a return on common and industrial sales were down equity of x3% based upon the then 8.x% and 3.3%, respectively. estimated level of kwh sales in xg76.
The net increase in the number of The request was deemed necessary customers served at year's end was because of substantial increases in 63 lgg up 8.4% over the gain of the cost of labor and materials, rec-6o,x3x recorded for l973. ord high interest rates, higher costs related to environmental considera-Edison Increases The Company's Board of Directors tions, and general inflationary pres-Common Dividend voted on March zx to raise the com- sures. Public hearings on the rate mon stock quarterly dividend from increase application commenced in 39 cents tc 4z cents per share. The November and a decision by the increased dividend is equivalent to cpvc is hoped for in the latter part
$ x.68 per share on an annual basis, . of xg73.
compared with $ x.36 previously.: During the year, the Federal Edison last raised the dividend on Power Commission (Frc) concluded common stock in December xg7x, public hearings on two Edison filings when the quarterly rate was raised to increase rates for resale custom-from 37i/z cents to 3g cents. ers. On September 7, xg73, and August 4 f974 pursuant to orders of the rpc, the Company increased
its wholesale base rates, designed to authorized by the cpvc in xg7z which produce about Sx6 million and Sxz.8 permits the Company, subject to million, respectively, on an annual cpvc approval, to adjust billings to basis, and on May z, zg74, made a reflect increases or decreases in fuel clause effective, all subject to fossil fuel costs.
refund. Certain resale customers On January 3, xg75, Edison applied have intervened to oppose these for an increased fuel cost adjust-filings which are pending linal ment billing factor to become effec-decisions by the Fpc. tive February T 1975. Public hear-ings commenced in January and are Kilowatt-hour scheduled to continue into March Sales and involve not only the requested billion kwh fuel cost offset, but the historical and projected operation of the fuel So cost adjustment procedure.
On August 6, the cpvc authorized the Company to implement a special fuel cost adjustment for a zz-month 40 period to offset certain fuel oil transportation charges. The special adjustment is expected to increase revenues by $ 9.7 million during the one year it will be in effect.
During the past three years, Edison substantially increased its fuel oil storage capacity and its fuel oil inventory to help prevent fuel shortages resulting from possible interruptions in the supply of im-ported low-sulfur fuel oil. In an effort to offset a major part of the carrying costs incurred as a result of this action and the greatly increased price of fuel oil in inventory, Edison, in 19/0 x971 19/2 i973 19$ $ September, filed with the cpvc an application for an adjustment in rates Fuel Costs Continue Edison's fuel expenses for L974 were which, iE authorized, would result to Increase $ 5o5 million, a 57.3% increase over in additional revenues estimated at the $ 3zz million recorded in zg73. approximately Sx7 million on an FOI'1975 fuel costs are estimated to annual basis. Public hearings have total approximately Sz billion. been held and a decision is pending.
In zg69, the Company's fuel ex- On December x7, the cpvc ap-penses accounted for approximately proved a modification to the fuel zo cents out of each dollar of reve- adjustment clause to permit Edison nue. In zg74, these expenses ac- to recover its costs associated with counted for 34 cents of each dollar certain fuel exploration and develop-received, but are expected to jump to ment programs carried on by one of about 5o cents in '1975. its subsidiaries, Mono Power Com-Fuel cost increases have been off- pany. The Commission found rea-set largely through the application sonable an initial increment which, of a fuel cost adjustment procedure when implemented, would provide about Sz.7 million in additional annual revenues.
Source of 340 Residential California Pollution Control Financ-Revenue Dollar: z5C Commercial ing Authority at a cost to the X974 z4e Industrial Company of 7.x7%. In turn, the ge Public authorities Authority sold to the public a like 5C Resale amount of its pollution control revi zC Agricultural nue bonds, pledging fhe Edison xN Other bonds to secure the payments of the at>8 principal and interest.
Edison maintained its double "A" 9t bond rating during xg74, a year in which many utilities'ecurities were derated.
Current plans for xg75 include the sale of up to Sx5o million of z5-year First and Refunding Mortgage Bonds scheduled for competitive bidding on March 6. Additional external financing will be required during the balance of xg75. The timing and amount will depend to a SCE Raises Over Five issues of securities were com- large degree on future capital re-
$ 325 Millionin pleted during x974 which raised in quirements and market conditions.
New Financings excess of $ 3z5 million in new capital to help finance the Company's con- Use of 365 Fuel and purchased power tinuing construction program. Revenue Dollar: x5it'axes A Sxoo million offering of z5-year X974 x34 Other operating expenses First and Refunding Mortgage (principally labor)
Bonds, Series CC, was sold on Febru- SN Depreciation ary xx at a cost to the Company of SC Interest S.x3%. 7N Dividends Edison netted approximately $ 49 7 Retained earnings reinves ted million when two million shares of in the business
$ 23 Cumulative Preferred Stock, 65 Maintenance 8.83% Series, were sold on April3o 68 at a cost to the Company of 9.03%.
An offering of four million shares of common stock was sold Novem-ber 7 at Sx7.75 per share, with net proceeds totaling approximately $ 67 88'8 million. This marked the first issue of common stock by the Company since April xg7x.
Also on November 7, a Sxoo mil-lion offering of 7-year First and Re-funding Mortgage Bonds, Series EE, >SC was sold at a cost to the Company of g.z5%.
In addition, on July 3o, Edison sold Sx3 million of First and Refunding Mortgage Bonds, Series DDP to the
Review of Generating Capacity million kw Operations 0 reserve capacity 0 peak demand
>ocr Supply Energy conservation measures im-plemented by scE's customers, eco-nomic conditions, the higher price of electricity and the absence of any extended summer heat wave contrib-uted to a lower peak demand (g,gg7 megawatts) in xg74 than in T973 when a record xo,233 mw was recorded.
In light of some uncertainty re-garding the continuing impact of conservation, economic conditions and rising electric rates upon future load growth, Edison's plans for new system capacity additions are subject to continuing evaluation and rescheduling. For the xg73-79 time period, it is currently anticipated that system peak demand for electricity willgrow at an average annual compound rate of about 3%. 1970 19)1 'x9$ 1 19$ ) ig g As a result of the lower estimated The major portion of the Company's SCE Constructs and growth rate, the Company deferred Plans Future $ 483 million xg73 capital budget is construction schedules for three pro-Power Projects devoted to construction of new posed power generation projects-a generation facilities.
x,336-mw combined-cycle facility at Lucerne Valley, a x,p6-mw com-San Onofre Initial site preparation work for two bined-cycle facility at Huntington Unl'ts2 &3 new So% Edison-owned xpoo-mw Beach and a x,34o-mw HighTempera-nuclear units at the existing San Ono-ture Gas-cooled Reactor (HTGR) nu- fre Nuclear Generating Station be-clear plant near Vidal Junction.
gan in March after a four-year delay Edison, however, intends to continue during which Edison was engaged in its efforts to secure necessary regula- the regulatory approval process and tory approvals for these facilities so attendant lawsuits, some aspects that construction timetables can be of which ar'e still pending. Actual moved forward in the event power construction work commenced in demand increases more sharply than November and if construction pro-anticipated in the near future. ceeds as scheduled, the units willbe During 'l974, one new generating placed in operation in x9Sx and xg 82.
facility was completed. The 34-mw The new generation to be pro-combustion turbine generator at the vided at San Onofre, when fully Ellwood Energy Support Facility operational, will enable Edison to near Santa Barbara became opera- utilize nuclear fuel instead of an esti-tional on August x. mated 2o to 23 million barrels of expensive imported low-sulfur fuel oil which otherwise would have to be used to produce the same amount of electric energy.
Long Beach Also, after an extended delay, all of On December 3o, Mono Power Modernization the major regulatory approvals were Company, a wholly-owned subsidi-obtained, and construction of the ary of Edison, and subsidiaries of combined-cycle facility at the exist- two other participating electric util~
ing Long Beach Generating Station ties, signed a memorandum of inten~
was started in May. The addition of with Kaiser Industries Corporation seven gas turbine units to the exist- to develop jointly a xz-million-ton-ing steam turbines will increase the per-year underground coal mining station's electrical output from facility which could provide fuel for x48 mw to 572 mw. Operation of the the Kaiparowits Generating Station.
units is scheduled for late xg76. Development of the electric gen-erating station and mining facilities Coohoater Expansion Regulatory delays in connection with is contingent on government approv-the proposed 472"mw combined-cycle als and on availability of financing project at the existing Coolwater for the power and mining facilities.
Generating Station have delayed the start of construction. Subject to the San Joaquin The Company is participating with obtaining of required regulatory Nuclear Project other utilities in a feasibility study approvals on a timely basis, the two of a proposed 5,o8o-mw nuclear new units comprising the project generating station in Kern County, are scheduled for operation in xg77 California. Edison's share of this pro-and xg78. posed project, if it proceeds, would be approximately zz%.
Big Creek sca applied to the src to add a 35-mw generating unit at Big Creek 4 3 Construction Powerhouse. If approved, the addi- Expenditures tional low-cost hydro energy will in millions of dollars mean a savings of approximately G estimated 72 ooo barrels of low-sulfur fuel oil annually. Completion is scheduled for xg8o.
i- ~
Yuma-Axis Station The Company plans to construct a z5-mw combustion turbine generator at the Yuma-Axis Generating Station near Yuma, Arizona, to supply the eastern California desert area with needed electric power. The facility is scheduled for operation in xg78.
Kaiparotoits During the year, Edison, on behalf of participating electric utilities, en-tered into a preliminary letter of intent to purchase four steam-tur-bine generators for the proposed Kaiparowits Generating Station which is to be located in southern Utah. Public hearings and a decision by the Bureau of Land Management >97o >97< >W> >975 >%4 'AS of the U.S. Department of the Inte-rior on the 3,ooo-mw coal-fired facil-ity are expected in xg75. Edison, currently with a 4o% interest in the project, has been designated Project Director and Operating Agent.
Fuel Supply Fossil fuels low-sulfur oil, natural pany's service territory because of gas and coal were utilized by Edi- the necessity to tie new geothermal son to generate 7o% of the electri- energy sources to new generating city transmitted to its customers in plants and related transmission fa-x974. Oil accounted for >8% of the cilities. During the year, Mono and electricity required, while natural gas its joint venture partner submitted accounted for x7% and coal,x5%. bids on two parcels of land and filed The remaining go% was met by for leases on a number of other par-nuclear and hydroelectric plants and cels. To date, however, no leases have purchased power. been obtained.
In xg74, the Company's low- sul-fur fuel oil usage totaled 55 million Electric 58% Oil barrels, down from the 4z million Generation by x7% Natural gas barrels consumed in xg75. The re- Source: 1974 x5% Coal duction was attributable principally x5% Purchased and interchanged to factors referred to earlier such as power extremely favorable weather condi- xo% Hydroelectric tions and energy conservation meas- 5% Nuclear ures which enabled sca to save the equivalent of approximately zo mil- 10%
lion barrels of fuel oil.
If average weather conditions are experienced in xg75, Edison expects to burn about 55 million barrels of oil. This higher-cost low-sulfur fuel oil is estimated to be required to meet 58% of scz's projected gener-ating requirements in xg75 as com-pared with x5% in xg7o. Lower-cost natural gas, the availability of which is diminishing in southern Califor-nia, is projected to be available for R & D Directed Edison expended a total of Sx5 mil-only 8% of electric generation, as Toward Fuels and lion on research and development compared with 57% in xg7o. Advanced Generation activities in xg74.
Fuel oil requirements for xg75 are Because of rising costs for fuel and substantially covered and are ex- increased concerns for the environ-pected to be met by oil under contract ment, a large portion of Edison's Rao and, in part, by utilizing a portion of program is being concentrated on the xg.7 million barrels of fuel oil in alternate fuels, advanced generation Company storage facilities at the end concepts and environmental research.
of xg74. The program includes efforts in de-veloping liquid fuel from coal, oil SCE Explores for In an effort to reduce dependency on from shale, oil desulfurization, geo-New Energy the limited foreign sources for low- thermal and solar energy, fuel cells Resources sulfur fuel oil required to meet air and the fast breeder reactor.
quality regulations, Edison is con-tinuing its exploration and develop-ment of coal, oil, gas, uranium and geothermal energy resources through its subsidiary, Mono Power Com-pany.
Efforts to explore and develop geothermal energy have been con-fined to areas in and near the Com-
Environmental Over the years, scE has initiated and SCE Engaged in Beginning in the middle xggos, Edi-Preservation advanced numerous programs de- Air Quality Activities eon initiated a program to reduce the signed to make meaningful improve- oxides of nitrogen (NOx) emissions ments to environmental quality which could be justified by favor-able cost-benefit ratios. Such a cost-from its electric generating facilitie~
These activities led to the develo P -
ment and application of various tech-
~
effective approach is of critical im- niques which have permitted NOx portance to the Company's efforts to reductions up to go%. These operat-reconcile shortages of new capital, ing modes since have been adopted America's need to achieve an accept- as an industry standard for the con-able degree of energy self-suffi- trol of NOx.
ciency, growing customer concern Edison, as Project Manager, along over rising electric rates, and the with other utilities, is constructing preservation of the environment. and testing two experimental sulfur During xg74, an estimated Spy dioxide (SOg) and particulate re-million, or about so% of the Com- moval scrubber modules at the exist-pany's Sy8o million capital expendi- ing coal-fired Mohave Generating ture program, was spent for environ- Station. Upon completion of the test-mental purposes. For x975, similar ing of these modules in early x975, expenditures are forecast at Shoo one type is scheduled to be selected million, or about ax% of scE's capital for a production scrubber full-scale budget. installation to comply with the Clark Air and water quality, protection County, Nevada, air pollution con-of marine life, and esthetics of facili- trol requirements.
ties are the major areas, although the full range of environmental problems Water Quality In xgp4, scE marine biologists, to-receives attention including pro- Programs Receive gether with biological and oceano-grams designed to monitor and Continued Attention graphic consultants, continued to evaluate the effects of coastal and carry out extensive studies of marin inland power plants on the environment.
life in the near-shore water at Edi-son's coastal generating stations.
Q Results of these studies provide in-Environmental creased understanding of the effects Plant Expenditures of power plant cooling water on the in millions of dollars marine environment which aids the Et estimated Company's effort to provide con-tinued marine life protection.
Edison is providing environmental information on the Company's marine water discharges to the U.S.
Environmental Protection Agency (Ei A), to cooperate with that agency's development of national water qual-ity regulations. Edison, along with other major electric utilities, is urging the EPA to balance environmental protection controls with reasonable cost-benefit ratios.
g91o g91g g91g g9V g914 g91$
More Cable The Company installed 7.3 circuit Employment of The results of scE's Affirmative Ac-Installed miles of underground higher-voltage Minorities and tion program, shown in the accom-Underground 66 kv subtransmission cable in 1974. Females Increase panying chart which covers the A total of nearly zo circuit miles now period from year-end 1970 through has been installed under the pro- year-end1974, were achieved despite gram initiated in 1970 to evaluate the the Company-wide, self-imposed performance and economics of this hiring freeze which began in late higher-voltage cable under actual %973. Despite the manpower reduc-operating conditions. The trial instal- tion, which could be expected to lation program is expected to be impact adversely entry level jobs, completed in 1973. minorities as a percentage of the In addition, more than 73% of the workforce increased from 14.9% to new customers served by Edison in 16.1% and females from 14.7% to T974 were'connected to underground 1.3.4% during 1974.
lower-voltage distribution systems. The Company is involved in con-ciliation and litigation proceedings Affirmative Over a period of years, Equal Em- relative to alleged discriminatory ployment Opportunity, a Company employment practices which are dis-Action cussed more fully in Note 3 of Notes policy of long standing, has evolved into the concept of Affirmative Ac- to Financial Statements.
tion. The ultimate objective of Edi-son's program is to employ qualified minorities and females throughout the workforce in numbers similar to their availability in the Company's labor market area.
Edison has been operating under various Affirmative Action Programs for a number of years. In 197z, the Company developed a revised pro-gram for minorities and females which was accepted by the California Fair Employment Practice Commis-sion.
Percentage of Male, Spanish-Female and Minority American Surnamed Total Male Female Black Oriental Indian American Minorities Employees at (
Year End Year End Year End Year End Year End Year End Year End Year End 1970 1974 1970 1974 1970 1974 1970 1974 1970 1974 1970 1974 1970 1974 1970 and 1974<1>
Management(>) 96.7 94.1 3.3 5.9 0.7 1.8 1.2 3.5 0.2 0.4 2.2 3.9 4.3 9.6 Non-Management(3) 84.2 80.5 15.8 19.5 4.0 6.4 0.6 1.3 0.2 0.6 4.5 10.5 9.3 18.8 Total Company 87.5 84.6 12.5 15.4(4) 3.1 5.0 0.8 2.0 0.2 0.6 3.9 8.5 8.0 16.1(4)
(x) Data as of December a7, xg74.
(a) Management employees include the "Officials and Managers," and "Professionals" Affirmative Action Categories.
include the "Technicians," "Office and Clerical," "Craftsmen," "Operatives,"
(p) Non-Management employees "Laborers" end "Service Workers" Affirmative Action Categories.
(4) Comparable figures in xg73 were x4.7% for females and x4.9% for minorities.
Southern California Edison Company SiatementS Of InCOme Year ended December SI, 1974 1973 Tlronsands of Dollars Operating Revenues: Sales (Notes I and 3) $ 1,4'71,952 $ 1,070,180 Other 11,480 9,168 Total operating revenues X,483,432 1,079,348 Operating Expenses: Fuel (Notes 3 and 9) 505,209 321,080 Other operation expense (Notes 3 and 4) . 23'7,409 194,038 Maintenance (Note I) . 91,905 85,184 Provision for depreciation (Notes I and 6) 116,189 109,878 Taxes on income (Note 6) . X35,137 48,274 Property and other taxes . 86,919 86,854 Total operating expenses . 1,172s768 845,308 Operating Income 310,664 234,040 Other Income and Income Deductions: Allowance for funds used during construction (Note I) X6,163 10,190 Other net(Notes 2and 6) . 4,430 1,229 Total other income and income deductions 20,593 11,419 Total Income before Interest Charges 33X,257 245,459 Interest Charges: Interest on long-term debt 104,145 95,473 Other interest and amortization (Note I) . 8,814 2,255 Total interest charges . 112,959 97,728 Net Income 218,298 147,731 Dividends on Cumulative Preferred and Preference Stock 35,688 28,842 Earnings Available for Common and Original Preferred Stock $ 182,610 $ 118,889 Weighted Average Shares of Common and Original Preferred Stock Outstanding (000) 44,580 43,965 Earnings Per Share (Note 8): Primary $ 4,10 $ 2.70 Fully diluted $ 3.89 $ 2.60
'12 The accompanying notes are an integral part of these statements.
southern caBfornr'a Edhon company Statements of Changes in Financial Position Year ended December 3r, 1974 X&73 Thousands of Dollars unds Provided By:
Operations Net income $ 2I Sp298 $ X47 731 Non-fund items Depreciation XX6,189 109,878 Equity in earnings in unconsolidated subsidiary companies (Notes 1 and 2) (1,040) (995)
Allowance Eor funds used during construction (Note 1) . (X6,163) (10,190)
Other (net) . 5,822 1,749 Total from operations . 323,106 248,173 Long-term financing Preferred stock . 50,000 75,000 Long-term debt . 222,486 4,558 Common stock 6/,200 Total from long-term financing . 339,686 79,558 Other sources Construction advances and other 169 7,540 Decrease in working capital items . 148,784 Total from other sources . 169 156,324 Total funds provided $ 662,96X $ 484,055 Funds Applied To: Construction additions net . 335p784 $ 325 681 Less allowance Eor funds used during construction (Note 1) . X6,X63 10,190 Funds used for capital expenditures 319,621 315,491 Advances to unconsolidated subsidiaries . 13,8/0 Dividends XI1,584 97,886 Repayment of long-term debt 70,678 Other 4,210 Increase in working capital items 213,6/6 Total funds applied $ 662,961 $ 484,055 Working Capital Changes: Temporary investments and notes payable (net) $ X59,173 $ (202,420)
Fuel stock X35,966 86,223 Other (81,463) (32,587)
Increase (Decrease) in working capital $ 2X3,6/6 $ (148,784)
The accompanying notes are an integral part of these statements.
southern california Edison company Balance Sheets December 3r, X974 1973 ASSETS Thousands of Dollars UtilityPlant: Plant in service, at original cost less contributions (Notes I, 2 and 3) $ 4p320p577 $ 4 089 100 Less Accumulated provision for depreciation I
(Notes and 2) X,OS X,024 958,210 Net utility plant in service 3,269,553 3,130,890 Construction work in progress (Note 4) . 422,834 352,352 Nuclear fuel, at amortized cost . 22p764 17,179 Total utility plant 3p7XS,XSX 3,500,421 Other Property and Investments: Real estate and other, at cost less accumulated provisions for depreciation 15,605 11,949 Subsidiary companies, at equity including
$ IS,813,000 in 1974 and $ 76,000 in 1973 of accounts receivable (Notes I and 2) . /2,961 58,051 Total other property and investments . 88,566 70,000 Current Assets: Cash (Note 3) 8,003 8,787 Temporary cash investments 66,673 Receivables, less reserves for uncollectible accounts (Notes 1 and 7) 122,48'7 90,808 Materials and supplies, at average cost 26,54/ 22,562 Fuel stock, at cost (first-in, first-out) (Note 9) 2/6,268 140,302 Prepayments and other (taxes, insurance, etc.)
(Note 3) 82,848 41,918 Total current assets 582,826 304,377 Deferred Debits: Unamortized debt expense (Note I) 3,427 2,605 Other deferred charges X3,974 12,358 Total deferred debits 17,401 14,963
$ 4,403,944 $ 3,889,761
'14 The accompanying notes are an integral part of these balance sheets.
December 81, 1974 1973 CAPITALIZATION AND LIABILITIES Thousands of Dollars Shareholders'quity: Original preferred stock $ 4,000 $ 4,000 Cumulative preferred stock 483I'755 433 755 Preference stock 74,998 74,998 Common stock, including additional stated capital . 3951709 362,376 Total capital stock stated value 958,462 875,129 Additional paid-in capital 350,503 316,636 Capital stock expense (Note 2) . (1,538)
Retained earnings (Note 2) 677,839 573,261 Total shareholders'quity X,986,804 X,763,488 Long-Term Debt (Notes 1 and 7) X,944,272 X,722,710 Total capitalization . 3,931,076 3,486,198 Current Liabilities: Accounts payable X14,748 X00,620 Notes payable to banks (Note 3) 92,500 Taxes accrued (Note 6) 160,639 64,552 Interest accrued . 31,134 26,515 Customer deposits . X0,958 8,643 Dividends declared . 24,820 20,729 Other (Note 3) 45,345 9,312 Total current liabilities 38'7,644 322,871 Commitments and Contingencies (Note 3)
Reserves and Deferred Credits: Customer advances for construction X9,095 X8,926 Other deferred credits . 6,506 4,957 Accumulated deferred income taxes (Note 6) 29,678 31,807 Pension reserves (Note 5) . X8,X43 19,818 Insurance, casualty and other reserves (Note 2) XX,802 5,184 Total reserves and deferred credits 85,224 80,692
$ 4,403,944 $ 3,889,761
'x5 The accompanying notes are an integral part of these balance sheets.
Southern Callfornla Edteon Company StateInentS Of RetalneQ Eal'nlngS anCI Additional Paid-in Capital Year ended December 31, 1974 1973 Thousands of Dollars RETAINED EARNINGS:
Balance at January 1 $ 573,26X $ 513,866 Add: 'Net income for the year 218,298 147,731 Adjustments net (Note 2) (2,136) 9,550 789,423 671,147 Deduct: Dividends declared on capital stock Original preferred $ 1.65 per share for 1974 and $ 1.56 per share for 1973 792 749 Cumulative preferred 32,157 25,401 Preference . 3,900 3,900 36,849 30,050 Common-$ 1.68 per share for 1974 and
$ 1.56 per share for 1973 74,735 67,836 XXX,584 97,886 Balance at December 3X $ 677,839 $ 573,261 ADDITIONALPAID-IN CAPITAL:
Balance at January 1 \ $ 316,636 $ 316,636 Premium received on sale of common stock 33,867 Balance at December 31 $ 350,503 $ 316,636 x6 The accompanying notes are an integral part of these statements.
sontlrern callfornla Edison company Statements of Capital Stock December 31, 1974 Rcrlemption December 31, Shares Price 1974 1973 Outstanding Per Share Thousands of Dollars Original Preferred 5%, prior, cumulative, participating, not redeemable, authorized 480,000 shares, par value $ 8x/3 per share 480,000 $ 4,000 $ 4,000 Cumulative Preferred authorized 12,000,000 shares, par value $ 25 per share (a) (b) 4.08% Series . ,1,000,000 $ 25.50 25,000 25,000 4.24% Series . 1,200,000 25.80 30,000 30,000 4.32% Series . 1,653,429 28.75 41,336 41,336 4.78% Series . 1,296,769 25.80 32,419 32,419 5.80% Series . 2,200,000 27.00 55,000 55,000 8.85% Series . 2,000,000 27.20 50,000
$ 100 Cumulative Preferred authorized 6,000,000 shares, par value $ 100 per share (a) (b) 7.325% Series 750,000 115.00 75,000 75,000 7.58% Series . 750,000 108.00 '75,000 75,000 8.70% Series . 500,000 111.00 50,000 50,000 8.96% Series . 500,000 111.00 50,000 50,000 483,755 433,755 ference authorized 10,000,000 shares, par value $ 25 per share (a) (c) 5.20% Convertible Series 2,999,900 25.00 74,998 74,998 Common authorized 60,000,000 shares, par value $ 8x/3 per share, including additional stated capital (b) (c) 47,484,883 3951709 362,376 Total capital stock stated value (d) $ 958,462 $ 875,129 (a) All series of Cumulative Preferred and Preference Stock are redeemable at the option of the Company. The various series of Sxoo Cumulative Preferred Stock are subject to certain restrictions on redemption for refunding purposes. Thc Sxoo Cumulative Preferred Stock,7.5z5% Series, has a cumulative sinking fund provision requiring the redemption of 5o,ooo shares annually at $ xoo per share, plus accumulated unpaid dividends, commencing July 5x, xg85, and continuing until all shares are redeemed.
(b) The transactions in thc capital stock accounts for xg74 were the sale and issuance of z,ooo,ooo shares of Cumulative Preferred Stock, 8.85%
Series and 4,ooo,ooo shares of Common Stock. In x973 75o,ooo shares of Sxoo Cumulative Preferred Stock, 7,525% Series were issued.
(c) At December 5x, x974 there were z,oz6,g6o shares of Common Stock reserved for conversion of Preference Stock, 5.zo% Convertible Series, at the adjusted conversion price of $ 57.oo per share. Also, at that date, there were x,so4,868 shares of Common Stock reserved for conversion of the 5i/s% Convertible Debentures, Due xgSo, at the adjusted rate of one share of Common Stock for each $ 4x.5o principal amount of such debentures.
(d) The Company's Articles of Incorporation authorize the issue of z,ooo,ooo shares of $ xoo Preference Stock, Sxoo par value, none of which was outstanding at December 5x, xg74 or xg75.
The accompanying notes are an integral part of these statements.
yanrharn california Ed/ran company StatementS Of LOng-term Debt December 31, X974 1973 Thoidsauds of Dollars First and Refunding Mortgage Bonds (a): Series C, Due 1976 (2r/s%) $ 35,000 35,000 Series D, Due 1976 (31/s%) 30,000 30,000 Series E, Due 1978 (3/s%) 30,000 30,000 Series F, Due 1979 (3%) 30,000 30,000 Series G, Due 1981 (3 /s%) 40,000 40,000 Series H, Due 1982 (41/4%) . ~ ~ ~ 37,500 37,500 Series I, Due 1982 (4/4%): ~ ~ ~ 40,000 40,000 Series J, Due 1982 (47/s%) 40,000 40,000 Series K, Due 1983 (4/s%) 50,000 50,000 Series L, Due 1985 (5%) 30,000 30,000 Series M, Due 1985 (4/s%) 60,000 60,000 Series N, Due 1986 (4x/2 o/o) 30,000 30,000 Series 0, Due 1987 (4 /4%) 40,000 40,000 Series P, Due 1987 (41/4%) 50,000 50,000 Series Q, Due 1988 (42/s%) 60,000 60,000 Series R, Due 1989 (4/s%) 60,000 60,000 Series S, Due 1990 (4xh%) 60,000 60,000 Series T, Due 1991 (51/4%) 75,000 75,000 Series U, Due 1991 (6/s%) 80,000 80,000 Series V, Due 1992 (57/s%) 80,000 80,000 Series W, Due 1993 (6/s%) 100,000 100,000 Series X, Due 1994 (7x/8%) 75,000 75,000 Series Y, Due 1994 (81/s%) 100,000 100,000 Due '1995 (77/s%)
Series Series Series Z,
AA, BB, Due Due 1996 (8%)
1997 (72/s o/o) 100,000 X00,000 X25,000 100,000 100,000 X 25,000~
~
Series CC, Due 1999 (Sx/4%) 100,000 Series DDP, Due Due 1999 (7%)... ~ ~ X5,030 Series EE, 1981 (9%) ~ ~ ~ ~ ~ X00,000 X,772,530 1,557,500 First Mortgage Bonds (Calectric) (a) Due 1976-1991 (27/s %-51/s%) 87,340 87,340 Convertible Debentures (b) Due X980 (31/e%) 74,902 74,902 Promissory Notes (Note 7) Due 1979-1981 (Sxh%) X4,327 6,871 Principal amounts outstanding X,949,099 1,726,613 Unamortized premium or discount (net) (4,827) (3,903)
Total long-term debt (c) $ 1,944,272 $ 1,722,710 (a) All mortgage bonds are secured by utility plant, substantially all of which is subject to a lien under the trust indcntures. Additional First and Refunding Mortgage Bonds may be issued subject to the provisions of the applicable trust indenture. Each of the bond indentures requires special deposits with the trustees, which are based primarily upon the amount of bonds outstanding. These deposit requirements of $ 52,57x,ooo in 197'ere satisgcd by property additions and replacements. The First and Refunding Mortgage Bonds, Series DDP, arc subject to a mandatory sinking fund commencing on July 1, 1990.
(b) At December 51, xg74 and 1975 the 5i/s% Convertible Debentures, Duc xgso, were convertible at the adjusted rate of one share of Common Stock for each $ 4x.5o and Sy5.5o, respectively of the principal amount of such debentures. Any 5'/s% Convertible Debentures, Due xgso, which are converted may not be reissued.
(c) The Company has scheduled an issue to be offered for sale during March '1975 of $ '15o,ooo,ooo principal amount of First and Refunding Mortgage Bonds, Series FF, Due 2ooo. Thc nct proceeds will be used to reimburse the Company for monies expended for its construction program. The amount of long-term debt maturing for each of the following years will be: none in 1975'So,SSo,coo inxg76; none in 1977;
$ 55,5oo,ooo in xg78; and $ 55,765,ooo in 1979.
The accompanying notes are an integral part of these statements.
Southern California Edison Company was transferred to retained earnings since it is the Com-pany's intention to charge retained earnings directly for Notes To Financial Statements capital stock expenses incurred in future periods. In xg74 and prior years, capital stock expense was amortized to income over a five-year period from the dates incurred.
In years prior to x974 contributions received by the I
Note Summary of Significant Accounting Policies Company in aid of construction were presented as an account on the liability side of the balance sheet. In xg74, The accounting records of the Company are maintained in accordance with the uniform system of accounts prescribed these contributions were credited directly to utility plant; by the Federal Power Commission (rrc), and adopted by accordingly, the balance of such contributions at Decem-the California Public Utilities Commission (rvc). ber 3x, xg73 has been reclassified by crediting utility plant Additions to utility plant and replacements oE retirement for $ 86,917 ooo and the accumulated reserve Eor depre-units of property are capitalized at original cost less con- ciation Eor $ x3,x7g,ooo (relating to retired utility plant) in tributions, which cost includes labor, material, indirect order to conform the balance sheet presentations.
charges for engineering, supervision, transportation, etc These accounting changes have not had a significant and an allowance for funds used during construction. effect on net income and are in compliance with the orders Maintenance is charged with the cost of repairs and minor and authorizations of the regulatory agencies exercising renewals; plant accounts with the replacement of property jurisdiction over the Compan'y's accounting.
units; and the depreciation reserve with the cost, less net salvage, of property units retired. Note 3 Commitments and Contingencies Allowance Eor funds used during construction (Aoc) is the Construction program, Environmental generally accepted utility accounting procedure designed The Company has significant purchase commitments in to capitalize the cost of both debt and equity funds used to connection with its continuing construction program. The finance plant additions during construction periods and to construction program is currently estimated at $ 483,ooo,ooo restore net income to that which would have been expe- Eor xg75.
rienced without the construction program through a trans- Increasingly stringent air quality standards imposed in fer of such costs from the income statement to the balance Nevada and New Mexico affecting coal-fired generating sheet as utility plant construction work in progress. Such plants have required the Company to participate with the
'ds are recovered from ratepayers as a cost of service other co-owners oE the Mohave and Four Corners Projects in the installation of additional air pollution control equip-ough provisions Eor depreciation in future periods. The
'oc rate authorized by the rvc was 8.o% Eor xg74 and ment which is expected to involve added investment by the 7.5% for x973. Company in excess of $ xx7,4oo,ooo.
Depreciation of utility plant is computed on a straight-line remaining life basis for financial statement purposes Fuel supply and approximated z.g% and z.8% of average depreciable Long-term commitments, approximating $ 8 billion, exist plant for the years '1974 and xg73 respectively. Income tax under fuel supply and transportation contracts, including expense has been reduced by the current tax reductions short-term commitments under a fuel supply arrangement arising from investment tax credits and the use of liberal- entered into in x974 with a trust, whereby the Company ized methods and lives in computing depreciation for concurrently assigned its principal long-term fuel supply income tax purposes. contract to the trust and agreed to purchase fuel oil deliv-Debt premium or discount and related expenses are ered to the trust by the original fuel supplier. Payments being amortized to income over the lives of the issues to to the trust for fuel oil purchases consist of the trust's cost which they pertain. of oil determined on a first-in, first-out basis plus related Customers are billed monthly, except for most residen- administrative and carrying costs. For financial reporting tial customers who are billed bimonthly. Revenues are purposes, purchases of the trust are assumed to have been recorded when customers are billed. made on behalf of the Company. Accordingly, the balance Investments in unconsolidated subsidiary companies, all sheet at December 3'I '1974 includes $ 33 453 000 recorded of which are wholly owned, are stated on an equity basis. in current assets prepayments and other, and current liabilities other, reflecting the Company's commitments Note 2 Changes in Accounting Methods to purchase the trust's fuel oil inventory during '1975.
Retained earnings were increased in xg73 by $ 9 550,000, which consisted of the balance of undistributed earnings Government licenses of unconsolidated subsidiary companies of $ xo,667,ooo at Major hydroelectric plants together with certain reservoirs he date the Company adopted the equity method of ac- are located in whole or in part on lands of the United States nting, less $ x,xx7,ooo transferred from retained earn- under Government licenses and permits which expire be-ngs to increase the required reserve for certain federally licensed hydroelectric projects. On December 31 x974 the unamortized balance of capital stock expense, $ z,x36,ooo, 19
Southern California Edison Company interest rate for these borrowings (total interest divided by Notes to Financial Statements (continued) average daily borrowings) was xo.83%. There was no Note 3 Commitments and Contingencies (continued) tween x975 and 2009. Such licenses and permits contain commercial paper outstanding during xg73.
The variation between cash reported on the Company's balance sheet and the minimum aggregate deposits re-
~
numerous restrictions and obligations, including the right corded by the banks is considered "float," which is princi-of the United States to acquire the projects, under certain pally due to timing differences in recording deposits and conditions, upon payment of specified compensation. withdrawals by the Company and the banks.
Revenues Legal matters Pursuant to rpc authorizations, the Company has increased In connection with a charge filed with the Federal Equal
. rates during xg73 and xg74 for certain of its resale custom- Employment Opportunity Commission (ssoc) on January ers prior to the final determination of the rate proceedings 3x, xg7z against the Company and two labor unions, the pending before the ape. Additional revenues of approxi- noc,onSeptember6,xg73andonMarch22 x974 deter-mately $ 34,xoo,ooo collected thereunder are subject to mined that there is reasonable cause to believe that, with refund with interest to the extent that any of the increases respect to certain of the allegations, the Company and the are subsequently determined by the @pc to be inappropriate. unions have engaged in employment practices, with regard The Company believes that, based on present facts, the to women and certain minorities, which are in violation amount of revenues, if any, which may be required to be of Title Vliof the Civil Rights Act of xg64. The ssoc, the refunded would not have a significant effect on net income. Company, the two unions and the representatives of the plaintiffs mentioned below are currently meeting in concili-Leases and rentals ation in an attempt to resolve the alleged discriminatory The Company rents or leases computer equipment, office practices. While denying that it has engaged in any un-space and other incidental equipment and property. The lawful practices, the Company willendeavor to resolve total annual gross lease expense in xg74 is less than x% of the issues raised by the determination in these proceedings.
operating revenues. On January x5, xg74, a class action suit was filed against The present value of the minimum commitments of non- the Company and the two labor unions in the U.S. District capitalized financing leases is less than 5% of capitaliza- Court for the Central District of California. This suit alleges tion.'he majority of the Company's lease commitments that the defendants have engaged and are continuing to is charged to other operation expense. The impact on net engage in unlawful employment practices, with respect to income, had these commitments been required to be capital- Blacks and Mexican-Americans, which are in violation of ized, would not have beert significant. certain civil rights acts and encompasses a number of the issues raised by the Kzoc determination mentioned above.
Compensating balances and short-term debt Ifthe plaintiffs in such action should prevail against the In order to continue lines of credit with various banks, Company, the court, in addition to awarding monetary which amounted to approximately Sx57 million at Decem- damages and back pay to class members (plaintiffs'laim is ber 3x x974 and Sx48 million at December 3x x973 the in excess of $ zo,ooo,ooo), could enjoin any employment Company maintains deposits aggregating approximately practices it determines are unlawful and order that the Sx5 million, which are not legally restricted as to with- Company undertake further affirmative action with respect drawal. The unused lines of credit at December 3x x974, to future hiring and promotional practices, as well as such and xg73 were approximately Sx57 million and $ 55.5 mil- other equitable relief as the court deems appropriate. Settle-lion, respectively, $ 8 million of which may be utilized only ments, consent decrees and decisions arising out of charges through the issuance of commercial paper. filed against other employers under such civil rights acts The average interest rate on notes payable to banks out- have resulted in the imposition of uneconomical hiring, standing at December 3x x973 was 9.74%. The maximum promotional and other employment practices and require-amount of short-term borrowing was Sxx5.3 million during ments, as well as substantial monetary awards or settle-xg74 and Sgz.5 million during xg73, with average daily ments. In the opinion of the Company's counsel, based borrowings outstanding of $ 48.x million and Sx3.4 million, upon the results of the Company's investigations to date, respectively. The approximate weighted average interest although there are no controlling judicial precedents con-rate for these borrowings (total interest divided by average cerning a number of issues raised in the case, the Company daily borrowings) was xo.x5% for 'x974 and g.z8% for has numerous defenses to this action which should be x973 sustained by the court, and the plaintiffs'ecovery of dam-The maximum amount of commercial paper outstanding ages, if any, should not be material in amount.
during xg74 was $ 88.9 million with average daily borrow-ings of Sz8.5 million. The approximate weighted average
In addition to the above class action, class actions could Note 6- Taxes on Income be instituted by the Rzoc if the matter is not resolved in As required by the I vc, no provisions are made Eor income conciliation, and by others raising issues other than those tax reductions (net) which result from reporting certain luded in the class action now pending. Also, other pro- transactions for income tax purposes in a period different edings alleging discrimination could be instituted against from that in which they are reported in the financial state-the Company by other Federal agencies for the termina- ments. The most significant of these transactions is the tion of contracts for the processing of nuclear fuel, the sale deduction of additional depreciation in income tax returns or purchase of power or purchase of water, and of ease- as a result of using liberalized methods and lives. Provi-ments, rights of way and permits over Federal lands on sions to account for the deferral of income taxes due to which numerous Company transmission and distribution accelerated amortization were permitted by the ptJc in facilities are located or are planned to be located in the certain prior years, and the accumulated amounts deferred future. are being amortized to income as such taxes become payable.
Note 4 Research and Development In addition, investment tax credits deferred in certain Plant related research and development (Rs D) expenditures prior years were amortized to income in equal annual are accumulated in construction work in progress (cwn) amounts pursuant to rvc authorizations. At December pT, until a determination is made whether or not such projects 1974 the balance of these deferred investment tax credits will result in construction of electric plant. If no construc- had been completely amortized. The estimated amount of tion of electric plant ultimately results, the expenditures investment tax credit generated in T974 and T97p has been are charged to operating expense. The balance of Ra D applied as a reduction of income tax expense.
expenditures included in cww at December 3T '1974 was The provision for state taxes on income is provided on
$ 8 399,000. R6rD expenditures are expensed currently if taxable income of the current year; however, Eor Federal they are of a general nature. Total RscD expenditures purposes such taxes are not deductible until the following amounted to $ Tg,402,000 in 1974 and $ 17,44T,ooo in year. The provision for T973 state taxes on income includes T97>. The net amounts of RaD charged to cwtp amounted approximately $ y,ooo,ooo Eor under provisions of prior to $ (542,000) in 1974 and $ 9 407 ooo in T97y. The amounts years.
of RaD expensed were $ Tg,944,000 in 1974 and $ 8,0>4,000 Supplementary information regarding taxes on income In T973. is set forth as follows:
Year Ended te 5- Retirement Plans December 31, The Company's current pension program is based on a 1974 1973 trusteed non-contributory pension plan. Since January T, Thousands of Dollars T966 the required Company contributions have been Computed "expected" federal determined on the basis of a level premium funding income tax . $ 168,468 $ 92,398 Reduction in tax:
method. Past service costs incurred prior to that date have Excess of tax over book depreciation . (2'1,631) (27,495) been funded. Pension costs are funded or reserved for on Allowance for funds used during an actuarial basis and amounted to $ 19,789,ooo for 1974 construction (7,158) (4,891)
Removal costs expenscd for and $ 14 89$ 000 Eor T973. The costs of pension benefit tax purposes (5,023) (5,136) improvements made in T97> under the plan were partially State taxes on income . (3,6'14) (3,272) offset by an increase in the interest rate assumption used Other timing diffcrenccs (5,132) (6,451)
Investment tax credit (1,951) (8,460) in determining pension costs. Federal tax provision . 111,359 36,693 Provisions of the Employee Retirement Income Security State tax provision. 24,241 10,980 Act of 1974 which willbecome effective in 1976, willre- Total provision for taxes on income . 135,600 47,613 quire the Company to amend its pension plan which Amortization of previously deferred:
Taxes on income . (2,129) (2,114) amendments willhave the effect of increasing the annual Investment tax credits . (781) (781) pension cost by approximately $ 1,250,000 commencing Taxes on income (credit) allocated in T976. to other income 2+47 3,496 Under the employee stock purchase plan adopted to Taxes on income included in operating expenses . $ 13S;131 $ 48,274 supplement employees'ncome after retirement, employees may elect to contribute specified percentages of their Pretax income $ 350,988 $ 192,509 compensation to a trustee for the purchase of Company Effective tax rate (Taxes on income included in operating expenses Common Stock and the Company contributes to the plan ~ Pretax income) 38 sogo 25 logo an amount equivalent to one.-half of the aggregate con-ibutions of employees, less Eorfeitures. The Company's tribution amounted to $ 2,272,ooo for 1974 and 2 080 000 Eor T973.
2i
Southern California Edison Company Note 9- Fuel Transportation Charges Notes fo Financial Statements (continued) Net income for the year ended December 3T, xg73 did not include transportation charges applicable to certain xg73 Note 7 Long-term Debt Payable in Foreign Currency The Company has entered into a financing agreement, as amended, with certain English banks pursuant to which it fuel oil deliveries by a major fuel oil supplier, since such charges were being negotiated with the supplier at the end of that year and any related amounts paid were to be sub-
~
expects to issue over a period ending not later than January jected to separate rate making procedures in xg74. These 3'1 1977 promissory notes payable in pounds sterling in charges as finally agreed to and paid in xg74 amounted to the maximum aggregate principal amount of Kxx,833,624 $ 17 72'1,ooo exclusive of related sales tax of $ g7g,ooo. In (but not to exceed $ 28,4oo,ooo). At December 3T 1974 August T974 the Pvc authorized the Company to put into and xg73 promissory notes were outstanding in the effect revised tariff schedules reflecting a special fuel cost amounts of K5 966 Soo (recorded at $ x4,327,ooo) and adjustment designed to offset, during the succeeding 82,8T6,72o (recorded at $ 6,87x,ooo), respectively. These twelve months, a major portion of such fuel oil transpor-notes were issued at various dates, are secured by a pledge tation charges net of certain credits totaling $ 8,o5g,ooo of the Company's customer accounts receivable and are arising in T974 from certain fuel oil purchases. Unamor-recorded at historical exchange rates. At the December 3x, tized transportation costs at December 3'I '1974 of xg74 exchange rate ($ 2.347 per 8), the Company has an $ 6 452 ooo are included in fuel stock and willbe amortized unrecognized exchange gain of approximately $ 322,ooo. to income in equal amounts over the next seven months.
Note 8- Earnings Per Share Primary earnings per share are based on the weighted average shares of Common and Original Preferred Stock outstanding in each year, giving effect to the participating provisions of the Original Preferred Stock, and after providing Eor preferred and preference dividend require-ments. Fully diluted earnings per share also give effect to the dilution which would result from the conversion of the Preference Stock, 5.2o% Convertible Series and the 31/s%
Convertible Debentures.
Report of Independent Accountants To the Shareholders and the Board of Directors, Southern California Edison Company:
We have examined the balance sheets and statements of capital stock and long-term debt of sovTHERN cAi.iroRNiAEDisoN coMPANY (a California corporation) as of December 3'1 T974 and xg73, and the related statements of income, retained earnings and additional paid-in capital, and changes in financial position for the years then ended. Our examinations were made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
In our opinion, the financial statements referred to above present fairly the financial position of the Company as of December 3x, xg74 and xg73, and the results of its operations and the changes in its financial position for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis during the years.
ARTHUR ANDERSEN & CO Los Angeles, California January 3x, xg75 22
Southern California Edison Company Capital Stock-Price and Dividend Information 2974 1973 1st Qtr. 2nd Qtr. 3rd Qlr. 4th Qtr. Year Ist Qtr. 2nd Qlr. 3rd Qtr. 4th Qlr. Year riginal Preferred:
High Price 5 Zps/s 8 Zps/4 S X93/s 5 X8s/s 8 Zps/4 5 zss/s $ 24 $ 22s/e S 22s/4 5 25s/s Low Price I83/4 X8'/2 I6>h X6s/e X6>/2 239s 23 18'/4 18 18 Dividends Paid .39 .42 .42 .42 1.65 .39 .39 .39 .39 1.56 Cumulative Preferred:
4.08% Series High Price I3'/2 Iz'/2 II'/s u,'h 13th 14'/e I4'h I43/e I3'/4 I4%
Low Price I2% u'/e Xp~h Ips/4 Xp>h I3~/s 14 IZ~/s X3'/s xz~/s Dividends Paid 25>/2 .zst/~ .25th .25>/2 1.02 .ZSt/2 .25>h .25th .25'/2 1.02 4.24% Series High Price I3r/s 13'/4 Ixs/4 xzf4 I3r/s xsth I4'r/s 14'/s I4s/4 xs%
Low Price 13 11'/s Ipth lps/s Xp>h I4'/4 144/4 13'/s X3a/s I3e/s Dividends Paid 26>h .ze/2 .26t/2 .Ze/2 1.06 .26t/z .26th .26>/2 .26>h 1.06 4.32% Series High Price I4'/4 13'/s Izs/e Xz'/4 I4'/4 IS'/s Is'/e 14h 15 IS'/s Low Price Izs/4 111/4 Xp'/s 10'/s 10'/e x4'/4 14 I33/4 Izr/e xz~/s Dividends Paid 27 .27 .27 .27 1.08 .27 .27 .27 .27 1.08 4.78% Series High Price 16 X4>/2 I33/e I3'/a 16 17 I6y/s 17 I6'r/s 17 Low Price 14'/s xz'/4 u.'/e u'/2 11'/e 16 16 IS Is'/s 15 Dividends Paid 29'r/e .29'r/s .29r/s .29r/s I X91/ .29~/s .29'/s .29'r/s .29'/s X.X9~h 5.80% Series High Price I8'r/s I7'/2 Is~/s 16 I8'r/s Zpr/s 20'/s 20 20 20'r/s Low Price I7'/4 ISs/s I4'/4 144/e X4t/s 19'/4 19'/s X8'/4 18'/s I8~/e Dividends Paid 36t/4 .36'/4 .36'/4 .36'/4 1.45 .36'/4 .36'/4 .36'/4 .36~/4 1.45
- .8.85% Series igh Price 25s/s 24t/s 24t/2 zss/s
'ow Price 24 21s/s 213/s 21'/s Dividends Paid .559271(s) .553125 1.112 SIOO Cumulative Preferred:
7.32S% Series< >
High Price Low Price Dividends Paid 1.83t/s 1.83 t/s I.83 t/e 1.83t/s 7.325 1.567t"I .285i > 1.852 7.58% Series High Price 97t/s 88 80 84 97'/s 105t/e 1043/4 IOX3/4 103'/4 105t/e Low Price 92 84t/2 74 71 71 103 1001/4 97'r/s 96 96 Dividends Paid 1.89'/2 1.89t/2 1,89t/2 1.89t/2 7.58 I.89>/2 I.89>/2 1.89t/2 1.89>/2 7.58 8.70% Series High Price 107 101 93'/4 97>/2 107 II4'/4 XX3'/s xxzt/a 113 II4~/4 Low Price 1023/4 943/4 83s/s 8292 Szt/2 Ill 110 107>/a 104t/4 104t/4 Dividends Paid 2.17~/z 2.17th 2 I71/ Z.X7t/2 8.70 2.17'/2 2.17t/2 2.17t/2 2.17'/~ 8.70 8.96% Series High Price 109~/2 105 96~/2 98 109'/2 IISV2 II6V2 11392 IX2't/z II6'/2 Low Price 105 98 87 853/4 853/4 112s/s 113 108t/4 108 108 Dividends Paid 2.24 2.24 2.24 2.24 8.96 2.24 2.24 2.24 2.24 8.96 Preference:
S.20% Convertible Series High Price I6'/4 16 I4~/2 16 16'/4 22'/4 I9'/4 18'/s 18'/s zzi/4 Low Price xs'/s 14'/e Ize/e 123/4 123/s X8~/2 18 16'/4 I43/4 I43/4 Dividends Paid 32'/2 .32'/2 321/2 .32t/2 1.30 .32t/z .32'/2 .32'/2 .32'/2 1.30 Common:
igh Price I9r/s I9</2 X8>/e 18'/e I9~/s 28~/2 25s/e 24r/e 24'/s 28>h ow Price I8t/4 17>/e 14s/s IS>/4 14s/s 24 23~/s 20'/e X7t/4 X7t/4 Dividends Paid .39 .42 .42 .42 I 65 .39 .39 39 39 1.56 (a) In payment of pro rat a dividend No. x at $ .oosx46 per share and dividend No. a at $ .psych per sharc.
(b) The initial dividend was paid at the pe r share rates of $ x.F67 and $ o.as'espectively for the gyes,ooo shares issued on August x4, egypt, and on October xy, egypt. There are no price s as this issue was a private placement and shares are not listed on any securities exchange.
Southern California Edison Company Summary of Operations and Comparative Statistics of Progress xg64-x974 2974 X9 Summary of Operations Operating Revenues . $ 1,483,432 $ 1,079,348 in thousands Operating Expenses X,I72,768 845,308 Fuel (a) 505,209 321,080 Taxes on Income (a) . X35,137 48,274, Allowance for Funds Used During Construction . X6,163 10,190 Interest Charges XI2,959 97,728 Net Income . 218,298 '4 Earnings Available for Common and Original Preferred Stock $ X 82,610 $ 118,889,,
Weighted Average Shares of Common and Original Preferred Stock Outstanding . 44,580 43,965 Per Share Data:
Primary Earnings $ 4.10 $ 2.70 Dividends Declared on Common Stock . 1.68 Balance Sheet Data Gross Utility Plant $ 4,766,X 75 $ 4,458,631, in thousands Accumulated Provision for Depreciation X,OSI,024 958,210 Percent of Gross Utility Plant . 22.1 21.5 Long-Term Debt (b):
Bonds . X,854,544 1,640,349 Debentures . 75,401 75,490 Other . X4,327 6,871 Preferred & Preference Stock . 562 753 51~
Common Stock, Including Additional State d Capital 395,709 36vM6 Additional Paid-in Capital . 350,503 316,636 Retained Earnings . $ 677,839 $ S73,261 Capital Structure (percent):
Long-Term Debt:
Bonds . 47.2 47.0 Debentures X.9 2.2 Other 0,4 0.2 Preferred & Preference Stock 14.3 14.7 Common Equity 36.2 35.9 Book Value Per Common Share $ 29.77 $ 28.54 Operating and Sales Data Operating Capacity (kw) (c) 13,494,849 13,447,095 Kilowatt-Hours Transmitted (000) 55,105,988 57,730,121 Percent Output:
Hydro-Company Plants . XO.O 9.0 Hydro-Hoover Dam X.5 1.3 Thermal 75.1 84.7 Purchased Power & Other Sources X3.4 5.0 Kilowatt-Hour Sales (000) . 51,089,981 54,092,934 Number of Customers 2,69 X,691 2,626,492 Average Annual Kwh Sales Per Residential Customer 5,541 5,885 Number of Employees X3,468 13,927 Main System Peak (kw) . 9,997,000 10,25 (a) Included in Operating Expenses.
(b) The years subsequent to T972 include unamortized premium or discount related to each category of long-term debt.
24 (c) Includes g96,554 kw available Erom others in 2974 and 904,650 kw for 2973.
. 197X 802,434 X970
$ 720,661 1969
$ 642,124 1968 588,829 1967
$ 552,240 1966
$ 515,859 1965
$ 472,498 1964
$ 449,718
$ 931,216 $
711,564 612,732 535,846 482,663 440,646 411,059 388,450 355,780 335,903 220,630 164,891 126,592 111,357 111,825 98,974 98,586 83,399 82,912 46,382 38,542 38,635 36,480 37,592 45,785 45,286 46,290 46,354 7,152 15,859 X7,007 X7,471 10,007 6,762 5,679 3,257 2,357 91,752 82,308 77,633 68,246 58,760 50,498 43,734 37,407 35,073 137,350 X 27,297 127,495 107,869 99,894 99,329 90,791 84,374 82,322
$ 112,171 105,752 $ 110,497 $ 95,152 $ 89,419 $ 90,805 $ 85,163 $ 78,741 $ 76,7OI 43,965 43,041 40,963 40,501 39,348 37,963 37,963 37,963 36,799
$ 2.55 $ 2 46 $ 2.70 $ 2.3S $ 2.28 $ 2.39 $ 2.24 $ 2.07 $ 2.08 1.56 I 511/2 I 50 1.40 1.40 1.36'/4 1.2S 1.221/2 1.12 /2
$ 4,233,067 $ 3,998,045 $ 3,737,837 $ 3,461,836 $ 3,188,708 $ 2,880,652 $ 2,591,120 $ 2,369,473 $ 2,171,199 851,910 779,409 707,928 649,702 592,366 559,361 508,407 468,919 426,515 20.1 19.5 18.9 IS.S 18.6 19.4 19.6 19.8 19.6 1 ,705,139 I,S84,840 1,484,840 1,384,840 X,210,000 1,110,000 1,030,000 875,000 852,884 75,579 74,902 74,987 74,987 74,987 74,987 74,987 75,000 7,991 7,991 438 7,753 362,753 362,753 262,753 262,755 187,755 176,967 132,755 132,755 62,376 362,376 337,360 337,360 324,857 312,357 312,357 312,355 213,355 316,636 316,636 243,437 243,437 202,599 162,774 162,774 162,764 162,764
$ 513,866 $ 470,754 430,477 $ 381,040 $ 342,712 $ 308,541 $ 269,407 $ 231,700 $ 199,442 50.0 50.6 51.6 50.1 51.5 50.9 48.9 51.4 2.2 2.3 2.6 2.8 3.1 3.5 3.7 4.2 0.2 0.3 12.8 11.4 12.4 9.8 10.9 8.7 8.7 7.4 8.0 34.8 36.1 34.4 35.8 35.9 36.3 36.7 39.5 40.6
$ 27.18 $ 26.60 $ 24.72 $ 23.S3 $ 22.09 $ 20.72 $ 19.69 $ 18.72 $ 17.60 12,615,665 12,458,165 10,904,845 10,238,627 9,277,515 8,594,915 7,767,915 6,806,840 6,451,910 S5,686,776 52,672,084 49,674,757 46,344,845 42,905,380 39,847,438 36,739,031 33,793,186 31,218,901 6.4 8.4 9.2 12.8 8.2 15.2 10.9 16.7 11.3 1.2 1.1 I.I. 1.0 1.1 1.2 11 1.2 1.5 5,000'9.9 86.6 5.8
,
80.0 10.5 82.5 7.2 78.9 7.3 88.3 2.4 84.0 (o.4) 88.4 (o.4) 80.8 1.3 86.4 0.8 .
52,309,906 48,856,493 45,881,076 42,601,606 39,365,088, 36,418,891 33,686,652 ,30,128,140 27,960,830 2,566,341 2,497,342 2,438,584 2,383,251 2,330,751 2,277,976 2,225,225 2,171,881. 2,087,982 5,777 5,642 5,240 5,031 4,609 4,425 4,094 3,820 3,566 13,269 12,831 12,299 11,911 11,090 10,662 10,370 XO,X21 9,913 9,350,000 8,274,000 7,804,000 7,425,000 7,001,000 6,173,000 5,863,000 5,455,000
Southern California Edison Company clause provides Eor a projection of fuel costs during a xz-month period based on the average cost of fuel in inventory Management's Discussion at the beginning of the period and the cost of fuel neces-sary for the remainder of the period based on prices in effect and A.nalysis of Summary of at the commencement period and because fuel expense is accounted for by the Company on a first-in, first-out Operations basis, during a period when fuel prices are falling the fuel adjustment clause may be implemented to produce de-General creases in revenues greater than decreases in fuel costs.
The Company's rates subject to California Public Utilities In connection with the Company's current application Commission (rvc) jurisdiction (accounting for approxi- for an increased fuel cost adjustment billing factor which mately go% of sales during xg74) are determined by the was requested to become effective on February x, xg73, rvc on the basis of projected revenues and expenses (in- the rvc asked the Company to provide specified informa-cluding projected fuel costs) for an average year, i.e., a year tion with respect to the historical and projected operation in which the amounts of power available to the Company of the fuel adjustment clause and, Eor the first time since from hydroelectric facilities of the Company and others are such clause was authorized, set the Company's request for those which would be available under historical average a change in the fuel cost adjustment billing factor for pub-weather conditions and the amounts of natural gas avail- lic hearing. Hearings commenced on January 22, xg73, and able to the Company are those which its suppliers advise are scheduled to continue into March. The Staff of the it should be available under historical average weather rvc, in the hearings, has urged the commission to reduce conditions. the Company's existing fuel cost adjustment billing factor In May 2972, the rvc established an expedited proce- upon bases which the Company believes to be improper dure, consistent with the average year method followed in and is contesting. Intervening participants in the proceed-establishing the Company's base rates, for making upward ings have urged the r vc to reconsider both the design and downward adjustments, no more frequently than every and operation of the fuel adjustment clause. The Company three months, in billings Eor service to reflect changes in is unable to predict the outcome of the proceedings and fossil fuel costs. This procedure is set forth in a fuel ad- when or if any upward or downward changes in the fuel justment clause designed to adjust billings in such a man- cost adjustment billing factor may be made effective.
ner as to produce changes in revenues which track fossil fuel expenses projected on an average year basis. Changes Operating Revenues in the fuel cost adjustment billing factor must be author- The increases in total operating revenues for xg72, zg73 ized by the rvc. In the case of the Company's last four fil- and xg74 reflect principally general rate increases and ings, the r vc ordered into effect fuel cost adjustment billing upward fuel adjustments in the Company's rates to reflect factors less than those proposed by the Company. increased fuel costs. Revenues for xg73 and xg74 of To the extent that the amount of hydroelectric power $ 4,4oo,ooo and $ 29,7oo,ooo, respectively, are attributable available is more or less than that available under average- to increased rates Eor certain resale customers and are year conditions and the amount of natural gas available subject to refund with interest if any of the increases are is more or less than that projected, the Company may incur subsequently determined by the Federal Power Commis-fuel costs in a greater or lesser amount than projected with sion (Frc) to be inappropriate. (See Note 3 of "Notes to a related unfavorable or favorable impact on net income. Financial Statements.")
Substantially all the increase in net income from xg73 to Fuel shortages developing in late T973 prompted state
'1974 was due to unusually greater than average-year and federal governmental agencies to implement voluntary availability of low-cost hydroelectric power from the and mandatory conservation restraints on energy usage.
Company's own facilities and to an even greater extent As a result of these restraints and customer reaction to from the Pacific Northwest, a greater amount of natural sharply higher rates per kilowatt-hour, which for %974 gas available than projected and a less than projected use averaged 43.3% higher than for %973 the Company has of higher-cost fuel oil, in conjunction with the operation of experienced a decrease in the level of energy consumption the Company's base rates and the fuel adjustment clause. by its customers which amounted to a 3.6% reduction of This combination of favorable circumstances occurred pri- total kilowatt-hour sales for 2974 compared with 2973.
marily in the first three quarters of 2974 and the Company believes that such favorable circumstances are not likely Fuel to recur in 2973. In addition, because the fuel adjustment Fuel costs increased during 2972 '1973 and xg74 primarily because of decreased availability of natural gas and in-creasing prices of environmentally acceptable low-sulphur fuel oil as an alternative fuel.
26
The amount of hydroelectric and purchased and inter- Net Income changed power available in 1975 is expected to be less than The significant increase in net income for '1974 as com-in xg74. In addition, the Company has been advised that pared with 1973 is unusual and substantially all of such significant quantities of gas will not be available to it in increase is attributable to the availability to the Company 6 and subsequent years. As a result, the Company of substantially above-average amounts of low-cost hy-ects to be relying more heavily on higher cost fuel oil. droelectric energy purchased from and interchanged with The Company expects future increases in fuel costs, others and, to a lesser extent, generated on its own facili-including costs resulting from a tariff imposed by the ties, the greater than anticipated availability of low-cost Federal Government on oil imported after January 31, natural gas and a less than projected use of higher-cost fuel 1975. (For a discussion of fuel adjustment clause author- oil, in conjunction with the operation of the Company's ized by the pvc, see the discussion above under "General.") base rates and the fuel adjustment clause as discussed above. The Company believes that the availability of low-Taxes and ADC cost hydroelectric energy and natural gas cannot be ex-The increases in taxes on income for the years 1.972 and pected to continue at 1.974 levels and, as a result, net income
'1974 over the respective prior years resulted from increases in 197g is expected to be substantially less than in '1974.
in net income before taxes with no commensurate increases in tax reductions. (See Note 6 of "Notes to Financial Statements.")
The allowance for funds used during construction (ADc) decreased in 1972 due to a slowdown in construction activity and related costs. The increase in ADc during 1.973 reflected the impact of an increase in construction activi-ties, and the increase of ADc in 1974 reflected, in part, an increase in the ADc rate from 7.5% to 8.o% and, in part, an increase in construction activity and related costs. (See Note x of "Notes to Financial Statements.")
Operahng Revenues and Kilowatt-Hour Sales Class of Service Operating Revenues (000) Kilowatt-Hour Sales (000) o/ o/
1974 1973 increase 1974 1973 increase Residential $ 506,154 $ 394,827 28.2 X3,059,518 X3,532,182 (3.5)
Agricultural ~ 33,788 22 132 52.7 1,049,818 974,477 7.7 Commercial . 364,994 276,261 32.1 XX,514,671 12,523,975 (8.1)
Industrial . 354,334 229,563 54.4 X5,553,144 16,423,255 (5.3)
Public Authorities . X41,376 104,494 35.3 51575~587 6,098,515 (8.6)
Interdepartmental . 28 24 13.8 927 813 14.0 Resale . 71,218 42,879 66.2 4,336,256 4,539,717 (4.5)
Other . XX,480 9,168 25.2 Total $ 1,483,432 $ 1,079,348 37.4 51,089,981 54,092,934 (5.6) 27
Southern California Edison Company Board of Directors Jack K. Hor ton Chairman of the Board Norman Barker, Jr.
Edward W. Carter Warren Christopher Chninnan of the Board, United California Bank, Los Angeles Chal rtttan of the BoardC, arter Hatotey Hale Stores, lno .,Los Angeles Partner, Laro Firm of Messrs. O'Melveny & Myers, Los Angeles
~
WilliamB. Coberly, Jr President, California Cotton Oil Corporation, Los Angeles Terrell C. Drinkwater Retired Airline Executive, Los Angeles William R. Gould Executive Vice President Stanton G. Hale Clrninnan of the Board, Pncific Mutual Life lnsurnnce Company, Los Angeles Daniel J. Haughton Chairman of fhe Board, Lockheed Aircrnft Corporation, Burbank Frederick G. Larkin, Jr Chairrnnn of the Bonrrl, Security Pacific National Bank, Los Angeles T. M. McDaniel, Jr. President John V. Newman Chairman of the Board, Sunkist Groroers, Inc.
(Citrrrs Marketing Cooperntive), Van Nuys Gerald H. Phipps Presirlent, Gerald H. Phipps, Inc. (General Contractors), Denver Henry T. Segerstrom General Partner, C. 7. Segerstrom & Sons (Real Estate Development and Farming), Costa Mesa H. Russell Smith President, Avery Prorlucts Corporation (Manufacturer of Self-Adhesive Products), San Marino Richard R. Von Hagen President, Lloyd Corporation, Ltd.
(Real Estate Development anrl Oil Production), Beverly Hills Executive Officers Jack K. Horton Chairman of the Board and Chief Executive Officer T. M. McDaniel, Jr. President William R. Gould Executive Vice President Howard P. Allen Executive Vice President Robert N. Coe Senior Vice President (Poroer Supply and System Development)
Sherman F. Buese Vice President (Administration and Personnel)
Smith B. Davis Vice President (Finance)
J. H. Drake Vice President (Engineering nnd Construction)
David J. Fogarty Vice President (Poroer Supply)
Joe T. Head, Jr. Vice President (System Development)
Jack B. Moore Vice President (Arlvanced Engineering)
Edward A. Myers, Jr. Vice President (Corporate Communications)
William H. Seaman Vice President (Fuel Supply)
G. E. Wilcox Vice President (Customer Service)
Rollin E. Woodbury Vice President and General Counsel A, L. Maxwell Comptroller H. Fred Christie Treasurer C. D. Lester Secretary
1975 Annual The annual meeting of shareholders of Southern California Edison Company will be held at Io a.m.,
eholders'ing Thursday., April x7, x975, at the Company's Corporate Headquarters, mr 44 Walnut Grove Avenue Rosemead, California 9~7Zo. Telephone (exes) 57m-xzxz.
Stock Transfer Southern California Edison Company, Rosemead, California Agents ~ -Bankers Trust Company, New York, New York Registrars of Stock Security Pacific National Bank, I.os Angeles, California Manufacturers Hanover Trust Company, New York~New York Stock Exchange Common Stork:
Listings New York Stock Exchange, Inc.
Pacific Stock Exchange, Inc.
Preferred and Preference Stocks:
Ameriran Stork Exchange Inc.
Pacific Stork Exchange, Inc.
Ticker Symbol SCE (Common Stock)
Statistical A comprehensive financial and statistical supplement to this report is available in limited tiuantity.
~
Supplement If you wish a copy, please write to the Tr'easurer, Southern California Edison Company, P.O. Box 8oo, Rosemead'California 91770.
'
4 I
This Annual Report nnd the s'tntements and stntistics contained herein have been nssenibled for general infor>native purposes and are nof intended to induce, or for.use in connection unfh, nny sale or purchase of securities. Under no circumstances is this report or nny part of ifs contents to be considered a prospectus, or ns an offer to sell, or the solicitation of an offer fo buy, any securities.
lI
Southern California Edison Company, 2244 Walnut Grove Avenue, Rosemead, California gxp7o