ML20023D886

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Annual Financial Rept 1982
ML20023D886
Person / Time
Site: Waterford Entergy icon.png
Issue date: 02/24/1983
From: Cain J, Wyatt J
LOUISIANA POWER & LIGHT CO.
To:
Shared Package
ML20023D883 List:
References
NUDOCS 8306060120
Download: ML20023D886 (28)
v • d • e


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l' As of As of th ce :ll .19v.! Ihee :ll. 19xl i

Plant Investment . . . . . . . . . . . . . . . . $3,131,461,000 $2,634,000,000 Revenue . . . . . . . . . . . . . . . . . . . . . . . . . $1,195,583,000 $1,117,761,000 l

Net I ncome . . . . . . . . . . . . . . . . . . . . . . . $ 117,458,000 $ 124,469,000

! Peak Loacl (occurre<l 6/9/82 anal 7/15/81 ) . . . . . . . . . . . . . . . . . .. .... 4,259,000 KW 4,256,000 KW Generating Capability . . . . . . . . . . . . . . . 4,625,000 KW 4,625,000 KW l

Customers . . . . . . . . . . . . . ...... 540,387 530,579 Average annual kilowatt hours per t resi<lential customer . . . . . . ....... 13,545 13,791 1 \

Average annual revenue per resiciential kilowatt hour . . . . . . . . . 5.66c 5.33c l Population in area serve <l . . . . . . . . . . . . 1,600,000 1,585,000 Taxes charge <l to operating expenses . . $ 92,754,000 $ 98,413,000 E m ployees . . . . . . . . . . . . . . . . . . . . . . . . . 2,721 2,499 i

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To Our Stockholders With the available cash from the settlement, LP& L was able to postpone high-cost financing, pay off high interest bank loans, and defer filing a rate increase y 4

s request which LP& L had planned to file in July 1982.

Pursuant to the terms of the settlement, Texaco paid 9~ , LP& L $7387 million in a first installment Jtme I,1982.

md $2T>0 million in January 1981. A third payment of

$2T>0 million will be paid LP& L in January 1984.

4 LP&L's prudent use of the available cash from the j settlement resulted in the naving of almost $40 million for customers. Acutely aware that its customers de-J.M. Wyatt J.M. Cain serve the benefits from this large cash settlement.

LP&L recommended to the Louisiana Public Service Chairman of the li..ani ami l' resident an i Commission (LPSC) that the money be used to reduce Chief Ewrutise Officer Chief 0.erating 1

O&er the Company's rate base, which wouhl have resulted in Imver electric service costs for customers in future years. It would have saved customers in the future As the national economy went somewhat deeper into more than five times the dollars to be refunded. How-recession and unemphiyment worsened in 1982, these ever, on December 21,1982, the LPSC ordered the negative forces were felt by Louisiana business. Al- Company to refund the money to customers, and on though inflation abated, business showed a downturn in January 17, 1983, the LPSC issued a written order Louisiana. Industrial firms were affected, and layoffs providing for the prompt refunding of the money re-of employees were noted in most industrial areas. ceived and to be received. At the time of this report, the The Company had experienced a good year in 1981. Company was evaluating its alternatives in connection but suffered along wit h the economy as earnings turned with the order.

downward in 1932. LP&I/s net income was $117.T> The Company announced in August 19x2 a further million, a decrease of $7.0 million from net income in delay in completing Waterford 3, the Company's nu-198L Of the 1982 net income,1r; was comprised of clear generating unit, with an accompanying increase Allowance for Funds Used During Construction in cost of nearly $2T>0 million. The facility, which is the

( AFUDCh a non-caeh item. This compares to the 39'i first nuclear power plant in Louisiana, is scheduled to of net income represented by AFUDC in 1981. be completed in early 1981 and will cost an estimated

$2.0T>7 billion. The cost increase and delay are primarily However, LP& I/s negotiations with Texaco Inc., its attributable to the mereased reymrements of regula-largest gas supplier, which had been conducted over several years, were successfully concimled, repre- fory agencies following the Three Mile Island meulent m 1979, the complexity and scope of nuclear power senting the Company's outstanding financial ac_

plant construction, exacting quality control require-complishment of the year. These negotiations resulted ments, and f'mancing.

in a settlement which provided, among other things, for the payment of $1,087,uHi,000 ca3h by the large gas LP& L is a primary participant in another nuclear supplier, which, except for 197s, had failed to meet its power project - the Grand Gulf Nuclear Plant near contractual commitments to LP& L for deliveries of Port Gibson, Miss. Owned by Middle South Energy, natural gas for electric generation from 1977 through Inc., a subsidiary of Middle South Utilities, Inc., Grand May 1932. The settlement al3o involved contracts with Gulf Unit 1 is scheduled to be in commercial operation Texaco for large quantities of natural gas through 1992. by the end of 19s3. LP& L's share of this facility is in addition to the cash settlement. Texaco also agreed 431,000 kilowatts - 34.729 of the generating capabil-to guarantee LP& L savings of an additional $7>xT> million ity of the unit. LP&I/s share of Grand Gulf Unit 2, on on fuel and energy supplies for the ensuing IT>-year which construction has been temporarily sumended, is period following the June I,1932. 3ettlement. 29'>,000 kilowatts, or 21M; of that unit. Both Grand Gulf units are rated at 1,2T>0,000 kilowatts of general-ing capability.

2

The Company's 19x2 construction costs totaleil In August, the Fe<leral Energy Itegulatory Com-

$506.7 million, inclutling $.819.l million for continue <l mission (FEllC) approve <1 an earlier action of LP& L's construction on the Waterfoni 3 nuclear unit. Ihiant of Directors, naming J.M. Wyatt Chairman of i the Itoani an 1 Chief Executive Officer for LP& L, anil LP&Ils operating revenues in 1982 totaleil $1.2 billion, a 79 increase over 1981. The continue <l rise in ,L M. Cam Presulent anal Chief Operating Officer of the Company. Cain continues his reslumsibilities as Presi-operating revenues is primarily attributable to the May

< lent aml Chief Executive Of6cer of New Orleans Pub-1981 rate increase.

lic Service Inc.

Early hot weather in the summer set the Comitmy's .

peak < leman i earlier than usual in 1982. The 19X2 peak UY' M""""F' Yice Presi< lent - Governmental an i

<lemaml of 1,259,0(H) kilowatts occurre<l at 5 p.m. . lune Pubhe Affairs, ret.ireil .lanuary 1,1983, an<l was sue-ceetteil by John J. Contaro, who ha<l been Vice Presi-

9. This compares to the 1,2541,000 kilowatts of peak dent - Pubh,e Affairs at Michile South Services, Inc.

deman 1 July 15,1981. LP& L*s average residential customer used 13,515 kilowatt hours in 1982, down 216 Conlaro came to LP&L from Mi<hile South Services, kilowatt hours from the 13,791 average in 1981. This amt was elected Vice President - External Affairs for was a further decline from the 11,177 kilowatt hours LP&L by the Iloani of Directors on December 20.

used by the average residential customer in 1980. Con- Also retiring January 1,1983, was Charles E.

tinued increase in cost of electricity and efforts by Vaughan, Jr., Vice President - Division Manager for customers to conserve energy, along with an overall the Company's Northern Division. Carl C. Smith, mihl summer, are t he primary reasons for the decline in Transmission and Distribution Manager in LP&ils energy consumption. However, LP& L expects a 2.79 Engineering Department, was named Division Man-annual increase in overall energy use by its customers ager for Northern Division upon Vaughan's retire-through 1992. ment.

i At the end of 1982, LP& L was serving 510,387 cus- In a<hlition, Shelton G. Cunningham,Jr., Director of tomers - an increase of 9,808 customers over the Itates & ltesearch, was elected Vice President -Itates 530,579 at the end of 1981. LP&L is now serving ap- & Ilesearch by the Hoani of Directors at its October 22 proximately 129 of the state's population. meeting.

EffectiveJanuary 1,1982, regulatory authority over LP&L looks into 1983 with determination and op-approximately 18,000 LP&L customers in the 15th timism, but also with the realization that the Company Wani of the City of New Orleans (Algiers) was trans- faces perhaps its most challenging times in the months ferred from the City of New Orleans to the LPSC. This ahead. With the dedicated employee group the Com-

! action had been appnived in an election hehl November pany has, we are confident that 1983 will be another l SS,1981, by the voters in New Orleans. All LP& L retail successful year for our customers, our employees, and l customers are now under thejurisdiction of the LPSC. our stockhohlers.

Pn>gress continued during the year towani con- E,or the Itoani of D.irectors t solidating LP& L and New Orleans Public Ser ice Inc.

' February 21,1983 The announcement ofintention to consolidate the com-panies was mmle July 31,1981, and the request to the i LPSC for approval of the consolidation was made in July,1982. The request for appnival continued pending I

in early 1983.

( On January 21,1983, LP&L Gled with the LPSC a x request for a net rate increase of $112 million. The  ;

Company requested that the Commission hohl an im-mediate hearing and approve $1111 million of the total .,,y, wy,u 3, y, c,;, j request as an emergency increase. This amount was j needed in unler to avoid a suspension orcon3truction at l Waterfon! 3.

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Management's Discussion and Analysis of Financial Condition and Results of Operations

1. Financial Condition and preferred stock sinking fund requirements will be f Financing the Company's large construction pro- $87 million during the perimi 1983-19xT>. Requirements grams c<mtinued to be a major problem for the Com- for capital funds from external sources approximate pany in 1982, as it was in 1!61 and 1980. Net funds $711 million which will be used for the financing, in provided by financing transactions in 1981 and 19X0 part, of the Company's construction programs, for re-amounted to $187.6 million and $171.7 million, respec- payment of maturing debt and sinking fund obligations tively, and as a result the Company's bond and prefer- and for ot her corlwirate purluises, including the use of a i red stock earnings coverage ratios were at depressed twirtion thereofin connection with the Inissible refund-levels. During the first five months of 1982, the Com- ing of the proceedsof theabove mentioned settlement pany's etmstructivm expenditures were financed agreement.

primarily with short-term borrmvings and sales of $T20 In early l!MI, the Company sold $7T> million of pre-milhon of common stock and $50 milhon of preferred ferred stock and $200 million of first mortgage lumds.

stock. on June -1, !!fs2 the Company received an mitial in a<hlition, the Company has authority from the Se-payment of $58(, mdh,on resultmg from the negotiated curitic: and Exchan,,e Commission to s[ll during 1983 l settlement of a dispute with a gas supph,er (see Note 12 up to $150 million of common stock and to make short-to I manc,al i Staternents," Settlement Agreement % ith term borrowings totalling up to $225 million, subject to Gas bulypher L I,eruling a decision by the Lomstana capitalization restrictions. Following completion of the Public bervice Commission (LPSC) as to how the pro- preferred stock and bond financings in early 1983, the eeeds were to be returned to ratepayers, the Company Company had no short-term borrowings outstanding.

had used approximately $329 m,d hon of the proceeds through December 21, 1982 to repay its short-term The ability of the Company to sell additional pre-borrowings incurred to finance its censtruction pro- ferred stock and Grst mortgage bonds to provide neces-gram and for other corporate purinises. On December sary external financing is subject to improvement in 21,1982 the LPSC voted and subsequently ordered on t he Company's earnings through adequate rate relief so January 17, !!NI that refunds be made to ratepayers of that the Company's mortgage and charter earnings all proceeds received under the settlement agreement, coverage calculations will permit the issuance of these plus interest. After December 21,1982 the Company swurities. As of December 31,1982, and after giving ceased expending any further portion of the settlement effect to the above sales of preferred stock mJ first proceeds and has continued to finance its construction mortgage bonds, the Company could have issued, program and other corporate requirements through under the mortgage coverage test, approximately $9-1 short-term borrowings and the sale of other securities million of additional first mortgage bonds at an as- l as set forth below. sumed annual interest rate of 12'1 (plus any first mortgage bonds issued for refunding purinises), aml

2. L.iquedity and (,ap.tal Resource" j i wouhl have been precluded, under its charter, from

Construction expenditures, including Allowance for issuing any additional preferred stock. As indicated l Funds Used During Construction (AFDC), totalled below, the Company has recently filed with the LPSC l $1.1 billion for the three-year peri <wl 1980-1982, of for substantial rate relief, including $160.8 million of which $506.7 million was spent in 1982. Net funds pro- immediate permanent rate relief.

! vided by financing transactions amounted to $-111.7 million <iuring this three-year period. In addition, the 3. Results of operat. ions Company used $329 million of the proceeds from the The Company's financul performance deteriorated above mentioned settlement which enabled the Com- in 1982 as net income declined $7.0 million compared to pany to delay the issuance of certain debt and equity increases of $23.S million and $35.5 million for the years i securities originally scheduled for 1982. 1981 and 1980, respectively. In addition, AFDC, a i . non-cash item, increased as a percentage of net income The Company estimates that construct.um expend.^ from 399 in 1981 to 169 in 1982. The 1982 ratio, how-tures will be $S58 mdhon and maturing long-term debt l

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ever, was a slight improvement over the 1980 ratio of L Effects of Inflation ,

49 1 Despite the reduced level of inflation in 1982, its Operating revenue increased $77.8 million in 1982 impact on the Company's operations in recent years has due prinwrily to a 3!ay 1981 rate increase. For the been significant (see Note 14 to Financial Statements, years !!NI and 1980, revenue increases of $2GL2 mil- "Effect of In0ation on Operations (Unaudited)").

lion and $296.0 million, respectively, were attributable T>. Summary to increased fuel costs recovered through fuel adjust-

. h,"VCF"II*l/ortant events occurred m., 1982 that have ment clauses and rate increases received in this time af fected the t ompany s 6nancial con <htion and results period. Changes in sales of energy were relatively -

of operations. liy Slay 1982 the fullimpact of the most small in each of the years 1982,1981 and 1930 recent rate increase granted by the LPSC ,m 31ay 1981 The increases in fuel and purchased power expenses had been realized. I'pon receipt in June 1982 of the during the period 1930-1982 were primarily due to initial $587 million cash payment in connection with the higher average unit prices of energy costs and to large above settlement agreement, the Company decided to volumes of purchased power to displace even higher use a portion of the proceeds for the purpose of repay-cost gas and/or oil-fueled generation. The variances in ing short-term borrowings used to finance construction other operation expenses in 1980-1982 were attributa- and for other corporate purposes, delaying several ble to deferred fuel costs, which at times reDeeted wide scheduled security sales, and postponed the filing of a Guetuations in the cost of energy, and to the effects of rate increase application with the LPSC which had in0ation on labor, materials and supplie3 and services. been scheduled for July 1982. The Company believed 31aintenance expense increased in 1982 and 1981 due to that cu-tomer benefits from the settlement couhl have increased scheduled and unscheduled maintenance on been maximized by allowing the Company to retain the generating units. proceeds of the settlement and by effecting an appro-priate reduction in the Company's rate bag. In De-Taxes other than income taxes increased in each of cember 1932, however, the LPSC voted m f avor of a the years 1930-1932 due primarily to higher real and mot,on which wouhl be subsequently embo<hed ,ma i

pers'onal property taxes and fran'hise c taxes. January 19NI order, requiring the ( ompany to refund Income taxes included in operating expenses and all proceeds, plus interest, to ratepayers. The Com-other income Guetuated in 1982,1981 and 1980 primar- pany has until April 27,19NI,to appeal t heJanuary 1983 ily as a result of changes in income before income taxes, written order, aml is presently considering whether and, in 1980, to differences in timing between deduc- to appeal. However, the terms of such order call for tions for tax and book purposes for which deferred the first installment of the refunds to be made 31 arch taxes were not provided. 28, 19s3.

AFDC increased in 19F2 and 1980 primarily as a In January 19Ni, the Company fik,: with the LPSC result of increased amounts of construction work in a general rate inerca3e applicatioti designed to provide progress (CWIP). The net decrease in AFDC in 1981 additional annual net revenue of approximately $112 i was a result of a 31ay 1981 LPSC rate order allowing million and an emergency rate relief application for an I current earnings on a large portion of CWIP. inunediate increase in rates of approximately $160.8 For each of the years 1982,1941 and 1930, increased million. In the event the LPSC affords the Company the emergency rate relief requested on a tmiely basis, interest charges $ vere primarily attributable to the the Company beheves that it wdl have sufficient funds Company's issuance of additional debt and, in 1932, to ,

the accrual by the Company ofinterest on the portion of available to it with which to continue to tmance its construetion program during 19NI and to make such the proceeds used by the Company of the above men _

tioned settlement entered into hv the Comnany with a cash ref,unds to ratepayers arising from the settlement agreennent as may legally be required.

gas supplier.

6

1 1

REPOltT OF MANAGEMENT The management of Louisiana Pmver & Light Com- The lumni of directors pursues its reslumsibility for pany has prepared and is reslumsible for the financial reported financial information through its audit com-statements and related financial information incimled mittee, comiw> sed of outside directors. The audit com-in this annual report. The financial statements are mittee meets periodically with management, the inter-based on generally accepted accounting principles con- nal amlitors, and the independent public accountants to sistently applied. Financial information included discuss amliting, internal control and financial report-elsewhere in this report is consistent with the financial ing matters. The independent public accountants and statements. the internal auditors have free access to the audit com-niittee at any time.

To meet its responsibilities with respect to financial information, management maintains and enforces a The independent public accountants provide an ob-system of internal accounting controls which is de- jective assessment of the degree to which management signed to provide reasonable assurance, on a cost effee- meets its responsibility for fairness of finnneial report-tive basis, as to the integrity, objectivity and reliability ing. They regularly evaluate the system of internal of the financial reconis and as to the protection of accounting controls and perform such tests and other assets. This system includes communication through procedures as they deem necessary to reach and ex-written Inilicies and procedures, and an organization press an opinion on the fairness of the financial state-l structure that provides for appropriate division of re- ments.

sponsibility and the training of pers<mnel. This system .Tlanagement believes that these policies and proce-is also tested by a comprehensive mternal audit pro- dures provide reasonable assurance that its operations gram. are carried out with a high standant of business con-duct.

l AUDITORS' OPINION 1

l Louisiana Power & Light Company:

We have examined the balance sheets of Louisiana Power & Light Company as of December 31,1982 and 1981 and the related statements ofincome, retained earnings, and changes in financial position for each of the three years in the period ended December 31,1982. Our examinations were made in acconlance with generally accepted auditing standants and, accontingly, included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

In our opinion, the above mentioned financial statements present fairly the financial position of the 1 Company at December 31,1982 and 1981 and the results ofits operations and the changes in its financial

Imsition for each of the three years in the period ended December 31,1982, in conformity with generally l accepted accounting principles applied on a consistent basis.

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l New Orleans, Louisiana February 11,1983 i

7

h MMVTKtt@?d%WK ' [V3 BALANCE SIIEETS l)eremher :ll, !!N2 and libi ASSETS

!!)S2  !!)SI '

(in Thou and .)

l'Tl1.lTY Pl. ANT (Notes I anel 7):

Electric $ 1,:;85,607 $1,:!: 1.85:1

('onstruction w ork in progress . 1,715,851 1,:!n2,117 Nuclear fuel 1,: 78 :t,8:;2 Tot al .  :!,1::5.8::ti 2,6:17,8::2 I.ess accumulated depreciation . 16S,0!i2 1:11.775 l'tility plant-net 2,667,717 2,206,057

()TilEl! Pl!()l'EI!TY ANI) INVEST.\lENTS:

Investment in associateil company-at equity (Note 1) . -lS Too 12,157

()ther ITS 1: !)

Total . 111,178 12,5tHi

('l'Iti!ENT ASSETS:

(' ash (Note 5) . 1,ltiti 11,081 Special deposits . lo 86ti 11,58i Temporary investments-at cost, which approximates market (Note 12) , 282,lti7 -

Notes receivable 1,2 111 ti57 Accounts receivable:

l'ustomer and other (less allowance for doubtful cu3tomer accounts of $1:15 thousand) 51,: Its :15,6512 Associated companies . 1 811 115 Iteceivable from gas supplier (Note 12) . 250 t H H) -

I)eferred fuel costs 10.077 (!'l:11

.\laterials and supplies-at average cost 12,50:? 1::,1:17

()ther ti.156 6,8 8tl Tot al . 6:12,058 78,172 ID E FElll:EI) 1)EllITS:

!!eceivable from gas supplier (Note 12) . 250,000 -

Unamortized debt expense :i.12!i  ::,076 Total . 23:1,12ti  :,076 T( >T A I. 8::.6"2 I12 $2,:::;",201 See Notes to Financial Statements.

s

CAPITALIZATION AND LIAlHLITIES 1982 1981 iIn Thousands)

CAPITAI,1ZATION:

Common stock, no par value, authorized 150,(H)0,000 shares; issued and outstanding, 89,383,100 shares in 1982 and 81,807,100 shares in 1981 (Note 2) . . .. . . .. . . . $ 588,9m) $ 538,900 l(etained earnings (Note 3) . . . . . 60,981 76,995 Total common shareholders' equity . . . 649,881 615,895 Preferred stock, without sinking fund (Note 2) . .. . .. . 145,882 145,882 Preferred stock, with sinking fund (Note 2) . . .. . . 169,101 121,381 Long-term debt (Note 3) . .. ..... . . . . . 917,596 1,001,209 Total . ... .. . . .. . . . 1,912,460 1,884.367 CUIIItENT LI AllILITIES:

Notes payable (Note 5h llanks . . ... ... . . .. . .. .. 41,000 37,059 Commercial paper . . .. . .. .. .. . . .

- 20,000 Currently maturing long-term debt . . . . ... . . . . . .. . 52,350 2,267 Accounts payable:

Associated companies. .. .. . .. . .. . 32,821 29,068 Other.... . . . .. ...... ... .. .. . . . 79,884 50,471 Customer deposits ... . .. . .. . . .. 21,743 19,445 Taxes accrued ... . .. .. .. . .. .. . 2,015 11,924 Accumulated deferred income taxes (Note 6) . . . . . . .... 4,879 (457)

Interest accrued . . . .. .. .. . . . . .. . 21,774 24,669

! Dividends declared . .. . . . . . . .. . 28,708 25,539 Gas contract settlement-liability to customers (Note 12) .. .. 882,535 -

Other. .... .. .. .. . . . ... 1,781 2.279 Total . . . 1.175,490 222,264

( ... . . . . .. ..

DEFEltI!ED CI! EDITS:

Accumulated deferred income taxes (Note 6) . . . . . .. . 109,574 98,951 Accumulated deferred investment tax credits (Note 6) . . .. 123.213 90,469 Gas contract settlement-liability to customers (Note 12) . . . . . . .. 250,000 -

Other. .... . .. .. .. . . . . . 25,804 26,620 Total . .. . .. . . . . . . . . . 508.591 216,040 l

ItESEltVES:

Property insurance . . . . 4.531 6,136 Injuries and damages . . . . . . . .

1,040 1,394 1 Total . . ... . .. . . .. . . . 5,571 7,530 CO31311T.TIENTS AND CONTINGENCIES (Notes 4,7,9 and 12)

TOTAL $3,602.112 $2.330.201 See Notes to Financial Statements.

1 9

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E STATEMENTS OF INCO31E For the years ended December 31,1982,1941 and 11W0

!!W2 19st 19'O

' fin Thousands)

OPEI ATING I!EVENUES $ 1. l!G.583 $1,117,761 $s53.523 OPEl ATING EXPENSES:

i Operation:

1 Fuel 337.710 356,756 214.s20 f Purchased power. 375.924 335.353 212.279 Other 75,211 91.5s2 59.s:;0 Maintenance 15,556 38.573 28,906 i Depreciation . 15,286 43.619 12.5!3

  • Gs3 21,216 18.7,i3 Taxes other than income taxes i Income taxes (Note 6) Topi9 _ _77.197 Is.111 i Tota! . . - - - - -1.022,478 .-

96_1,626 737,222_

OPMI!ATING INCOME .+- 173,109

- - . ++

-_153,135

~A 116.301 l OTH EI! INCOM E:

Allowance for equity funds used during constructi<.n (Note ifs 38.967 :13.3 9 - 31.691 Miscellaneous income and deductions-net . 7.353 S.991 7.301 Income taxes (Note 6) . 12.929 _13.782 13.117 Total . 59.219 56_,171 52,111 I

! INTEI;EST Cil AI GES-

, Interest on long-term debt 100.171 85,632 69,396 1 Other interest-net (Note 12) "o.xxo 14.::36 16.167 Allowance for borrow ed funds used during construction (Note I F) US.154) (li. . i . ; D _ (17.827, Total . 111.900 _ _ _ x 1.x17 __0 7,736 NET INCOME $ 117.458- =_ -

$ 121.169 $ 100,676

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STATEMENTS OF RETAINED EARNINGS l For the years ended December 31,1952,1981 and 1950 l l

i ICETAINED E AI;NINGS. .Ianuary 1 3 76.995 5 65.209 $ 5 .311 l ADD-Net income 117.153 121,169 _100.676 Total . 191 153 l x9.678 139.217 1

DEDUCT:

Dividends-cash:

Preferred stock at prescribed rates ! Note 2 3 '.51s 24:M6 J ima I

' I Common stotk ([ er share: 1982 $1.111: 1951. $1.075

and 1980. $0.97t . 99.7:9 x 1.136 69. I 1 H l Capital stock expenses, etc. 165 l'I  ! ~i Total . 1:U.172 112.6 9 i.w h I;ETAINED E A! NINGS. December 31 (Note 3) 60.981 $ 76.99', 9 63.209 j i

i i See Notes to Financial Statements.

i i 10 1

- , - - , , _ - - . - - - , - - - _ _ _ - ~ _ _ , - - , _ _ , , , - - , _ - _ - , _ _ _ , . - . - _ - . - - , - - - - - _ _ _ , - . - - . - - . - _ _ . - - -

.=- _ _ .

STATEMENTS OF CIIANGES IN FINANCIAL POSITION For the years ended December 31,19S2,1981 and 1980 1982 1981 1980 (In Thousands)

FUNDS PitOVIDED fly:

Operations:

Net income . .. .. .. ... . .. . $ 117,458 $124,469 $100,(176

' Depreciation . . .... .. . ...... . . .. . 45,286 43,619 42,513 Deferred income taxes and investment tax credit adjustments-net . . 48,703 41,600 20,471 Allowance for funds used during construction (Note IF) .. . (54.121) (48.529) (49,520)

Total funds provided by operations . . . .. 157,32fi 161,159 114,140 Other:

Allowance for funds used during construction (Note IF) .. . 51,121 48,529 49,520 Gas contract settlement (Note 12) . .. . .. .. . 1,132,535 - -

Less funds on hand or due from gas supplier (Note 12) .. . .. (782,197) - -

Investment in associated company . . . . . .

860 Decrease in working capital * . . . . . .. 6.942 31,524 30,063 Miscellaneous-net . . .. ... .. ... . .

- - 4,033 Total funds provided, excluding Enancing transactions . . 568,727 241,212 198,616 Financing and other transactions:

Common stock . .. . . 50,000 40,000 70,000 Preferred stock . . . . ... . . .. . .. 47,720 - 28,391 First mortgage bonds .. . .. .. . .. . . ..

- 175,000 50,000 Other long-term debt . . ... ... . . ... . . ... . ... 25 975 4,572 Short-term securities . .. . . .. . ..

- 23,76fi 8,918 Sale and leaseback transactions . . . . . . . . . . .... . . - - 24,771 f

l Total funds provided by financing and other transactions. . . 97,745 239,741 186,652 Total funds provided . . .. $ 666,472 $480,953 $385,268 FUNDS APPLIED TO:

Utility plant additions:

l Construction expenditures for utility plant ... . . ... $ 506,722 $320.925 $259,979 Nuclear fuel . .. . .. .. . . . .. . .. 546 (11,343) 15,175 l

i Other-net . . . ..... . .. . ..... . ... . .. - - 4,121 l

l Total gross additions (includes allowance for funds used j during construction) . . .... . .... .... . 507,268 309,582 279,275 l Other:

l Dividends declared on preferred stock ... . .. ... 33,518 28,366 24,883 Dividends declared on common stock . . . ... .. . 99,789 84,136 69,110 Investment in associated company .. ... . . .. . .. 6,543 6,020 -

Miscellaneous-net . . .. . .. . . .. ... 4,028 687 -

Total funds applied to other . . .. .. 143,878 119,209 93,993 Financing transactions:

Itetirement of first mortgage bonds . .. . .. .. ..

- 50,000 9,900 fletirement of other long-term debt . . . . .. . .. 2,267 2,162 2,100 Short-term securities-net . . ... . . . . 13,059 - -

Total funds applied to Gnancing transactions . ... . 15,326 52.162 12,000 Total funds applied . . . .. .. . . . $ 66(i,472 $480,953 $385,268

  • Working capital excludes short-term securities, receivable from gas supplier, liability to customers, current maturities of long-term debt and deferred taxes included in current liabilities. The 1982 net decrease in working capital is primarily due to an increase in accounts payable reduced by increases in accounts receivable and deferred fuel costs. The 1981 net decrease in l working capital is primarily due to a decrease in deferred fuel costs and to an increase in accounts payable. The 1980 net decrease in working capital is primarily due to the increases in dividends declared, taxes accrued and accounts payable.

See Notes to Financial Statements.

I 11

l l

i i

i a _

! l

Notes to Financial Statements For the years ended December 31,1982,1981 and 1980
1. Summary of Significant Accounting Policies ted by the regulatory bodies for ratemaking purpows.

Investment tax credits allocated to the Company are A. System of Accounts deferred and amortized based <m the average useful iire ,

The accounts of the Company are ma.mtained in ac- of the related property beginning with the yearallowed cordance with the system of accounts prescribed by the in the consolidated tax return. l Louisiana Public Service Commission (LPSC) which substantially conforms to that of the Federal Energy F. Allowance for Funds Used During Construction ]

Regulatory Commission (FERC). To the extent that the Company is not permitted by its regulatory bodies to recover in current rates the H. Revenues carrying costs of funds used for construction, it The Company records revenues as billed to its cus- capitalizes, as an appropriate cost of utility plant, tomers on a cycle billing basis. Revenue is not accrued AFDC which is calculated and reconled as provided by '

for energy delivered but not billed at the end of the the regulatory system of accounts. Under this utilitv fiscal period. The rate schedules of the Company in- ndustry practice, construction work in progresh clude fuel adjustment clauses under which fuel costs (CWIP) on the balance sheet is charged and the income above or below the levels allowed in the various rate statement is credited for the approximate net compos- '

I schedules are permitted to be billed or required to be te interest cost of borrowed funds and for a reasonable credited to customers. return on the equity funds used for construction. This The Company defers on its books fuel costs in excess procedure is intended to remove from the income of the base rates until these costs are reflected in bill- statement the effect of the cost of financing the con-ings to customers pursuant to the fuel adjustment struction program and results in treating the AFDC clause. charges in the same manner as construction labor and j C. Utility Plant and Depreciation ma aem non-e hems h emb to We l

meome statement have no effect on current cash earn- ,

j Utility plant is stated at original cost. The cost of ings. After the property is placed in service, the AFDC additions to utility plant includes contracted work, di- charged to constructim$ costs is recoverable from cu3-rect labor and materials, allocable overheads, and an tomers through depreciation provisions included in allowance for the composite cost of funds used during rates charged for utility service. For the period 31ay 27, 4

construction (AFDC). The costs of units of property 1981.through December 31,1982, the Company used an retired are removed from utility plant and such costs accrual rate of 39 on its investment in Waterford No.

plus removal costs, less salvage, are charged to ac- 3, a nuclear generating unit scheduled for operation

- cumulated depreciation. Maintenance and repairs of in 1984, up to an investment of .$1,260,000,000, and property and the replacement ofitems determined to an accrual rate of 9.409 on the remaining CWIP and

be less than units of property are charged to operating on investments in Waterford No. 3 in excess of

, expenses. Substantially all of the utility plant is subject $1,260,000,000in accordance with a rate order from the to the lien of the Company's Mortgage. LPSC. For the period January l.1980. through 31ay 26, l Depreciation is computed on the straight-line basis 1981, the Company used an accrual rate of 59 on a

! at rates based on the estimated service lives of the portion of CWIP in the amount of $736,130,000 in ac-various classes of property. Depreciation provided on cordance with a December 1979 LPSC rate order, and I

average depreciable property amounted to approxi- accrual rates of 8.319 through May 26,1Mt.and 7.M9 i mately 3.M in 1982 and 1981 and 3.59 in 1980. in 1980 on the balance of CWIP.

D. Pension Plan The Company's policy is to continue to capitalize The Companv*s pension plan is non-contributory and Aq on projects during periods of interrupted con-struction when such interruption is temporary and the covers substantially all employees. The Company's contmuation can bejustified as bem, g reasonable under policy is to fund pension costs accrued.

the circumstances.

! E. Income Taxes i i G. Reserves

! The Company joins its parent in filing a consolidated The Company provides reserves for uninsured Federalincome tax return. Income taxes are allocated ,

property risks and for claims for mjuries and damage 3 to the Company in proportion to its contribution to the through charges to operating expenses on an accrual consolidated tax liability.

basis. Accruals for these reserves have been allowed Deferred income taxes are provided for differences for ratemaking purposes.

j between book and taxable income to the extent permit-

12
2. I' referred and Common Stock I' referred 3tock at December 31.1!62 and 1931 consisted of the folLwing:

Share +

i Authorized at Shares outstanihng Current 1)ecember 31. at 1)ecember 31. Call Price Cumulative, $lf M) Par Value lib 2 1932  !!bl Per Share

) Without sinking fund:

1.9ei'i Series . GUNHI tio,(p) t;0.in H) $ 101.25 1.18i'; Series . . 0.0t x ) 70.t H M p 70JnH) 101.21

-1.114 Senes. TI).tH N) 71),i H w) 70,i N H) 101.04;

5. Ill'; Series . 75,tH x t 75,l H M l 75,t e) 101.18 5.109 Series . 30.t H H) 30.t H N) 80,004) 103.t H) ti.1 P , Series . 80.t H x l 60,l H)) 50,d M) 102.92 9.325 Series . 70,t H x) 70.0tH) Ti),s.x H) 10ti.5x 7.st', Series . IsHUNN) 1(H l IN N) lim) tMHI 105.71 7.3*i' < Series . ItHUMMI li.n i.i H w i It xi,tu x) It)5.20 3.5ei'e Series . 100.000 ll H ).t x)O 100.q H H) 107.42 9.11'< Series . 300.I N M) 31H U N N) 3I N I,t N N I 109.08 11.139 Series . 350,00i1 350 t.M H i 350.q N H) 113.th Total . 1.155J o n 1.155,000 1.155.t N 10 i

Unissued _3,045 J H N )

Total . 1.5d H U H wi 1,155.t u l 1.155.f M N)

==

_- ==.

Cumulative. $25 Par Value With sinking fund:

10.72'i Series . 2. lt N),i M H) 2,40iM H N) 2,48.n ),0i H) 27Ji3 13.12'i Series . 1,th0J Hio 1.G iOJ H M ) 1,G N),0l H) 23.23 15.200 Series . 1,2t x U x H) 1.2ip M N H) 1.2t M U p) 28.30 11.72'1 Series . 2,1 N N U N H ) 2.t K H U N N) -

23 tid i

Total . 7.21 H ),ol N ) 7,2t H),0l N ) 5,2( N),t H N) l l Unissued _1.34 H IJ M H ) _

l Total . 12J M N).t N u l

-==

7.2t H

- U x= x)

5.2t ku u) lib 2 I!N1 l tin Thousands) l Without 3 inking fund:

Stated at $100 a share $115.500 $145,500 Premium 332 :b2 Total preferred stock and premium, without sinking fund . $115.332

$115.W2 With sinking fund:

Stated at $25 a share $ 150J N K) $130.0tH)

Issuance expense (10.599i (5til93 Total preferred .<tock and issuance expense, with sinking fund . $lti9. lol _$121.:b_1 l

l The 10.72'i,13.129,15.20'i and 11.729 preferred 30,tH'H), #10,000, and itH),0tH) shares, respectively, at a stock issues are each subject to a sinking fund pursuant price of $25 per share plus accumulated and unpaid to which the Company is oldigated to redeem, out of dividends.

funds legally available t herefore. commencing on.luly l .

The increases in the number of -hares of Common 198}, October 1,1931. November 1.1150, and .Tlay 1, ad Pre ferred Stock outstanding during the three i 193. , respectively, and endmg m.the year in which all of yeu s ended Decemher 31.1!62 were as follows:

the shares of said issues have been redeemed. 120,000, 13

Number of Shares 1982 1161  !!WO Common Stock shares sold 7,576,(M H) fi,W,0.7(Hi 10,G Hi, it H)

$25 Preferred Stock shares sold . 2,(M H ),( M H ) - 1,2(H l.f M H)

In early 1983, the Company sohl 875,000,(HN) aggre- change Commission (SEC) to sell up to 22,728,tHN) gate par value of preferrell stock, in athlition, the shares of comn.on stock, no par value, to its parent Company has authority from the Securities and Ex- company for $150,(H)0,000 l

3 Long-Term Debt Long-term debt at December 31,19s2 and 1981 consisted of the following:

I!W2 libi (In Thousanda First 31ortgage Bonds:

9Vi Series due !!63 .

$ .~d),t H M i $ 50,001)

( 3%9 Series due likt is HN) lb,f M M) l 9 9 Series due 19N. . ,>,t M M I 75,iH N D 1%9 Series due !!w7 20.t H N p 20,t M H) i 15%9 Series due 1985 50,0u) ,'d),1 M H )

10749 Series due l'b') G,t M H I EtMH) 5 9 Series due 1990 20,(M10 20,t M H) 16 9 Series due 1991, .. 75,4 H N) 75,i H H) 16%9 Series due December 1,1991 It H),( M )O 100,t H)0 4N9 Series due 19131 25,0t H) 25,fMH) 5%9 Series due 19tNi 35,l'H N ) :G,tMn) 5%9 Series due 1997 16,t H H) 16,(M H) 6%9 Series due September 1,1997. 1F,uM) 15,t H H) 7%9 Series due 110s :G,4 W H 6 :G,i H Hi 9%9 Series due 1999 25,u H) 25,(M)0 9%9 Series due 2tHH) 20,1 M H) 20,i M )0 7bi9 Series due 2001 25,t H H) 25,u d) 7%9 Series due 2iH12 25,0eH) 25,t H H) 7b9 Series due November 1,2tM)2 . 25,tH H1 25,000 8 9 Series due 2003 15,(M H i 15,0i H) bh4 Series due 2001 45,(M H) 15,1 H H) 8%9 Series due 2tHHi to,Nio 40,(H)0 10 9 Series due 200.5 ...,

Q),fH)O 60,( M H)

' 55,in M D 55,t H N) 13%9 Series due 2tH)9

[

Total First 31ortgage Bonds 917,t H H) 917.f M H) l Other:

Principal amount of municipal revenue bond ebligations,149-39 due serially 19xt-2(H11, f j and other future obligations under operating agreements . 39,151 11,121 (

Pollution control and industrial development revenue lumd obligations, 6.109-89 due 19xx-2009. 16,31Hi 16,300 1.ess-Amounts held by trustees . -

(25)

Total Other . 55,151 57,6twi linamortized premium and discount on long-term debt-net _ 2,58 ( N _ 11 '20)

Total Long-Term Debt , _ 999,916 1,003,176 Less- Amount due within one year 52,:G4 2.267 I ong-Term Debt excluding Amount Due Within One Year. $9 G.5twi $ 1,001_.209 14

~

1 1

i Sini. ine fund requh . "amts un hr-t Ert ene itonds and matur :ies u nder h > net erm debt instruments in etYect at lle ftmher $ 1, l'h2 '< ,r f r e v, a rs ids 2 t i:t i ! 'h I!b , an a3 h M ,u -

% ' Sinkite Fur # Maturities" i!n Thou-arnlu L $ 2,2e;7 1p'_ $7 72n 1** 9.170 52,:c,o

&1 3.790 20. pic I" w 790

. 2.59 M s.o to 77.i;75 pn? 7.s ;o 22.77:

V.th fm:d n, :wne, r , n.a r h, , i by n rtitiration of property ailihtion3 at a rate of 167N of .,uch requirements.

  • lt i- ant . e si : i i i u -t M t m p., vi mat m " W u l'l he redna:wnl at maturity.

The Erton s hh h is p> me t!y n:-n re-t rictive res t rict ion s th:m the M i d - a ,a or p > atL , ontam pn.vicion-In early 19<! the (. ompany sold 200JHO,Uno 3 prmei-n - t rict ine ,J i: ,*+ o r i h.vmcrms er ner de.t n hu-i ,,

pa! amount of. F..irrt Ertgaec Itonds.

l t bn- to s s o o A ,Ab b r, A t I k em er ,.1. l!"2.

S D;.<Vao i r, a : , d "arni e u. #

.. ' im such l

aml (.ontineencies t

l

1. ( .onum t me nt s i

14 Com - -

t rui- i proe r:ar '9 mplat.< SlT. noo.nou of u ideh Sl!" .210,000 was outstanding at mpe w ht un~ < t . e , , m. h ? U2.lon.ono in 19<: t h.c d A .Wo, SFT< parent companier, including the l .t .'l 2.W W " ) m lin i m i > J ' ? . f v 'd i n l W. ('ompany, have made covenants and agreements in l conn " tion wit h long-term leases by SI'I of oil stora.ge

,1,. + ( ,o m m , r a. , m,m e,+ in Sv a r m L.uel . . .

i

,m',a an d rule.n h..in nic the : oi e~-

.. and h w l!m.e tacih. .tn s :md coal hoppi r cars. At De-16

,r

'.-.I!

ccmher 31 l!b2 the aggregate ih.scounted value of m..h..', :v.m L f.'1.hties Inc.

I .ev .p r/ i c . uh- M e

. t hese ,,>an i a r a ncements was d_e . . .noJ oo.

l c.

a' h e t he j >ur-4 I,d.. . t 3, a is ei: ::  ; 1, *rt l i .s . mr , ,

Ao , , ' " _ prom fm- t i SF'l has entered into a contract with ajoint venture . .

t, fou ren m'itIa ;gC:es !. r a',r 4- ! ib jret at me f or a supld) (il casal f rom a mlfie m \\. fuming, wh.ich .is l wwmW charn , f r f w! A tered and m

  • 4 -

pri' :a rWc i . s w md t F rm '

- ' o h i,":

ex pect ed to provide l50 to 210 million tons over n perio<l of 26 to 12 yi ars the coal 3upplica is espected to he used l

! ...Ina'etra w e m 31,i . at an Arkansas Power & I.ight Company ( AP&lJ

I,& p a r ,< c. a-< N 1 veneratine 3tation. SF,I,s parent companies, including

, .i n. 4,.

,!,t e s i i i, i, .

tne (,ompany, each acting in accordance with its re-

+ s .

( J i .1 - , ' m7s 'v , . 4'1 J ,' , I'

'al., ep"ctive 3 hares of ownership of SFI's common stock,

~

1, ..s.. - r+ .l. '4

  • r!. jt> tai .

.p.med . .. ratihed, conb.rmed and adopted the contract

.. mo , ,,, om ',o x, m , .- ' De

md oNien ims of SFI thereunder. The contract pro-

,"m,

o. . m, .' t :." e t .,m.

'^J, n" ,  ?. ,,

i e n, . in, .

v u le - f.or >L I to make direct investments in the mm.e ja s ,al,

.- .t- 1

.1e ' - -l . ,, - ; m' r i i hi- ,. , .

tor p. ant and e<piipment in order to h. nut the amount to i

E tn a J re d a 1.. a t. +

(' .je f i ?I 'Ir . '!

he pahl hv >.F.1 to the joint venture as a component of

,an commit ment > r . e . . mn . s .v h r s -

2

. . E,n. i n :.dd a on.

,, , , t b, pr:ce of. coal. ,l'hrough !!b2 SF,I had so invested i

reement m.q ure D. 1 se ,

1ppro\imat el.v B l.s nu.lh.on and at Decemher 31,19%2 m

t i m. o. u n o 33 my- t- ! ! . _,o . .u m .n ,

> F,i antic; pated t hat it s total ad h. .t'onal investment m . s., _m .,

' , . ,3 g

)m$

s n e thi. lif.. vif the er mtract w anuld he ajipndimately

.e , e' 'm' ,, '

.l,, ,

m m' s!on mi'.' on includine 511.s million estimated for 1953.

L. o~ n'.' ., , , .or: r, .

i mie<j

.k fly tIj nfIs lntp<tiql Mntle r t h( M bnir;U t \Vill lhe s pht aine(I e m' ,'o!+o , i. m 4 p trt * >

I'v NI.

r at her t hrinich luirt <> wings < ir eit b e r a rra n ce-I t

, art i

!,.',,- e- !'a n,. . .

J "it ':it - M li ,f l it s l pan ni ef amj'alli* s, including tbe (,f em-l ', t , s t

< ..P . it KI lh i ar 3 rg y, i,, t h n,ngh ot her met l3 p h of ' fin;mejng, i

r' r *e

'5[ I i T' m' ' t .* ' i 'I.

.g7 7,,g.{ hpp gj{li t hei.ther AlkMie Aiuth

,,s y . ,. . ( ', ,g l ,  ;

( m- r, ,

m.w u en . . ,t.i -

m em n.. rat me comnam . s obligated under

)

,,' ' 'J.'

s,.,

i i -h mr ..nmnt - ( 3IS E A ereement a a lth Sliddle South ,

, ,i i 1a

, I nr. I blNb m a' cord:n.cc Wit b stat ed percent- I i

, io- <,,r , , m Si .i o ..

e el e , .s; , n. .m a c. .- . c h d t h e re n ' o m a w, payment > or suhonh.- , .

^

,,4 .-i- , ,

n'8 ," { .!i! v *l f;ct - 'Ultij'ut f til et!vt !* all alt t})(' (>[4 Tat.ing

, ,' s}.I' t,,e - ,

v;n no a?n! cm tain i.f ths c.yiital carts cif 31SI{. The

^

e ra n a r m r, . i,t me,, ,!. l A. % te* . .m .

' ' i f i,1

( 'm i s catml percentage reeponsibility under the ii 4 a !!- i r -e 'un

a t , a !'1 <6 1.5

- -- _-- _ ___ _ = _ . - . . .

i 31SE Agreements is 26.9'i. Through 1932, $2.7 billion tem operating companies on July 21,1160. Under- the l had been expemled by SISE on the two units of the reallocation agreement the Company, 31P&l and ,

Grund Gulf Plant, the first unit of which is scheduled for NOPSI,in proportion to such allocations, have agreed l 4

commercial operation in the fourth quarter of 1983. to assume and hohl AP&l, harmless from all of the Under certain circumstances, the Company may be reslwinsibilities and obligations of that company with required under the 31SE Agreements to make its share respect to the 31SE Agreements and, in consideration of advance power purchase payments of $12.5 million thereof, AP& L has relinquished its rights in the Grand i

i per month commencing January 2,19S t if the Grst urtit Gulf Plant.

of the Grand Gulf Plant has not been placed in c ommer- The Federal income tax returns for the years 1971 '

cial operation by December 31,19NI. through 1976 have been examined by the Internal llev-Effective November 19x1 the System operating enue Service and mijust ments have been proposed. The companies entered into a reallocation agreement al. principal issue is whether customer delmsits are in-cludible in taxable income. Formal written protests h>cating the capacity and energy available to 31SE from i Units Nos. I and 2 of Grand Gulf as follows: the Com- have been filed aml conferences are being hehl with pany, 38.57'1 and 26.23'i: 31ississippi Power & l.ight Appeals Officers of the Internal llevenue Service )

. Company OIP&L),31.63'i and 43.97'i: and New Or- (ll:SL Any finalliability for taxes resulting from set-I leans Public Service Inc. (NOPSD,29.30'i and 29.80'i, tlement with the II!S wouhl not have a material effect respectively. This allocation was consistent wit h a prior on net income since income taxes on customer deposits alh>eation of capacity and energy for the Units made wouhl be normalized. 31ost of the other issues have among the Company,31P& L and NOPSi pursuant to a been settled and adequate provisions have been re-memorandum of understanding executed by the Sys- corded.

) 1 i i

5. Lines of Credit and Related Horrowings At December 31,1982 the Company had $28.9 mil- cial paper dealer for the sale of commercial paper. The i lion in lines of credit with Louisiana banks and partici- Company has received authorization from the SEC ,
pated with the other 31iddle South System operating under the Public Utility Hohling Company Act of 1935 l companies in $100 million of consolidated lines of to have outstanding at any one time short-term bor- '

1 credit with banks outside the Sliddle South System rowings aggregating not more than the lesser of $225 l

area uf service. Compensating balances (approximately million or 10'i of the Company's capitalization. At the 5'i of the commitment amounts) or equivalent fees are end of 1982 and 1981 the aggregate amounts of unused required by certain of the lending banks. In February lines of credit with Louisiana hanks were $23.9 million 5

1983 the consolidated linea of credit wereincreased to and $25.7 million, respectively. The operating com-

! $200 million. The Company may borrow any unused panies had available at the end of 1982 and 1981, $56 portion of the consolidated lines subject only to its million and $190.8 million, respectively, under the con- 1 j maximum authorized level of short-term borrowings. solidated lines of credit.

The Company also has arrangements with a commer-i The short-term borrowings and the applicable interest rates (determined by dividing applicable interest expense i by the average amount borrowed) for the Company were as follows:

1982* 1161 1930 On Thousands)

Alaximum Imrrowing $185,793 $106.113 $131,750 Year-end Imrrowing $ 11.(NH) $ 57,059 $ 11,293 l ,

i t

! Average borrowing: j llank loans $ 31,728 $ -11,163 $tr1302 Commercial paper . $ 25.130 $ 27,511 $ 9,641 Average interest rate during the period:

llank loans .

15Ei 17.6'1 11.7'i Commercial paper . 15.7'i 17hi 13.7'i l

Average interest rate at end of period:

j llank loans . 9.s'i l1.l'i 20.Mi Commercial paper . -

11.1"

) .

l

  • Computations exclude interest expense accrued on settlement agreement funds used by the Company bee Note 12).

i f

I

.. . , . . . . . . ~ , .

(~ .. .. ;

. by.'L' - ,b . e s. .-

I I., O A!:i -

6, income Taxes Income tax expense is cony used of the following:

1162 libl  !!60 (In Thousands)

Current:

Fe:!eral. $ 1,161 $ 11,195 $ x627 State f1,1474 10.320 5 ,192 6 Total 3

____137_ 2 _-

- _1,815 11_,55_3 I)eferreil-net:

1 iberalizeil depreciation . 5,ini7 6p20 7,26!6

!)ifference lietween Imok and tax gains and losses on sales of property 17-1 2 >0 (I,91!n lleferreil fuel cost . 5.336 (x,715) 969 Other. 4,1v' 036 (1,71MD Total 15,959 (1,5014 1,193 Investment tax credit adjustments-net 32,714 -83,109 18,97;

!!ecorded income tax expense $57,110 $4M,115 $35,WI Charged to operations . $70,14i9 $77,197 $ 18.117 Credited to other income ( 12.tr2<n (1:!,7xa (13,117)

Itecoriled income tax expense 57.140 G4U5 35,0'"1 .

Income taxes applied against the debt component of A FI)C 14,227 11,039 16,717 Total income taxes . $71.367 $77,504 $51,741 Total income taxes differ from the amount computed by applying the statutory I'ederal income tax rate to income before taxes. The reasons for the differences are as follows:

19N2 1161 1160

'; of I re-Tax 's of Pre-Tax 'i of Pre-Tax Amount Income Amount income Amount Income Computed at statutory rate $80,315 16.in $86,127 16.ty ; $62,122 46.t ri Increases (riuluctions) in tax resulting from:

Allowance for funds used during construction . (21.X!ND (l1.31 (22,323) (l 1.!O (22,7714 ( 16.8)

Tax savings due to filing a consolidated return (2,131) (1,1) (1,300) (2.3) ( 1,TM b (3.3) l State income taxes net of Federal income I tax effect -1,652 2., ,>,431 2.9 3,03x 2.2 Other-net (."A n (.3) (1,873) (1.01 (3,207) (2.3)

Itecorded income tax expen3e 57,110 32.7 63,115 33.7 35p21 25.8 income taxes applied against debt component of AFI)C 11,22. . >.1 11,(d9 4.7 16,717 8.1 Total income taxes . $71,367 37.x'; $77,501 33.4'; $51.711 33.ty; l linused investment tax credits at December 31,1982 amounted to $52,1H)l,(HHIof which $9,956,000 may be carried forwant through 1992, $21,269,000 through 1993, and $18,676,(H)0 through 1997.

17

~

~

[ -[g.{ 5 ( ((, ]

7.l cases The Company accounts for leases on tF e same basis 1980, respectively.

as that used by its regulatory authority in the rate- Th Company has SEC authorization to lease nu-making process which determines the revenues utilized h fut 1 y to $NHW Im> m ments, based to recover the lease costs. on nuclear fuel use, will be treated as cost of fuel. The In 1980, the Company entered into a sale and lease, unless sooner terminated by one of the parties, leaseback of certain office buildings and related real will continue through June 1, 2028. The unrecovered properties. A gain of $13,138,000 has beer deferred and cost base of the lease at December 31,1982,1981 and is now being amortized over the life of tLe lease. The 1980 was $108,179,000, $91,078,000 and $59,100,0iH),

lease is for a primary term of 20 years and requires respectively.

minimum annual rentals of approximately $2.9tHi,000 Other lease commitments are not significant.

through 1985 and $1,307.000 thereafter.

Rental expense amounted to approximately

$5,718,000, $ 1,839,000 and $1,519,000 in 1982,1981 and S. Transactions with Affiliates The Company buys electricity from and sells elec- Operating revenues include revenues from sales to tricity to the other operating subsidiaries of SISU, its affiliates amounting to $10,832,000 in 19s2, $31,915.(H H) parent, under rate schedules Gled with the FERC. In in 1981 and $16,778,000 in 1980. Operating expenses addition, the Company purchases fuel from SFI and include charges from affiliates for fuel cost, purchased receives technical and advisory services from 31iddle power and technical and advisory services totalling South Services, Inc. $407,903,000 in 1982, $516,380,000 in 1981 and

$141,981,(HM) in 1980.

9. Proposed Consolidation In the interest of increased economic ef0ciency, the provals, the two companies will be consolidated into a Company and NOPSI have jointly begun development new company to be called Louisiana Power & Light of a plan to consolidate the two companies and their Company. 31SU, which currently owns all of the out-operations. Under the proposed arrangement, subject standing common stock of the Company and NOPSI, to the receipt of necessary regulatory and other ap- would own all the common stock of the new company.

I

10. Pension Plan The companies of the Sliddle South System have was not significant. Total pension expense of the Com-various pension plans eovering substantially all of their pany for 1982,1981 and 1980 was $5,007,000, '

employees. These plans are administered by a trustee $7,008,fH)0 and $5,346,000, respectively.

who is responsible for pension payments to retirees.

, The comparison of the actuarial present value of

\ artous mvestment mamigers have responsibility for accumulated plan benefits and plan net assets for the management of the plans, assets. In addition, an inde- Company's denned benent plan is presented below.

pendent actuary 1,>eforms the necessary actuarial valu- This comparison was determined in accordance with ations for the mdivulual company plans. the provisions of Statement of Financial Accounting Effective January 1,1982, the Company modified Standards No. 36 which requires the use of certain the method of amortizing prior service costs by chang- assumptions which are different from those used by the ing from a 6xed amortization period of thirty years to Company's actuary in determining an appropriate level varying amortization periods not to exceed thirty of funding for the Company.

years. The effect of the change on 1982 pension expense 18 l

January 1, 1982 1981 (in Thousands)

Actuarial present value of accumulated plan benefits:

Vested . . . . . . . . . . . . . . $43,236 $37,783 Nonvested . . . . 3,234 5,775 Total . .. .. . . . $46,470 $43,558 Net a.ssets available for benefits . . . .. . . . . $75,659 $62,956 The assumed rate of return used in determining the actuarial present value of accumulated plan benefits was 99.

i

11. Itate Increase Applications l

On January 24, 1983 the Company filed a general The Company also filed on January 24,1983 an rate increase application with the LPSC with respect to Emergency Application with the LPSC requesting that customers under its jurisdictior. asking authorization to the Company be grimted an immediate and permanent put into effect new retail rate schedules designed to adjustment in its rates sufficient to provide additional provide additional annual net revenues of approxi- annual revenues of at least $160,830,000. This amount mately $412 million. is part of and included in the $412 million general rate increase application.

12. Settlement Agree ment with Gas Supplier A dispute between a gas supplier and the Company made within 60 days ef the effective date of the onler, arising from the gas supplier's claimed inahility to de- the second refund installment within six months of the liver full quantities of fuel gas due the Camp-ny under effective date of the onler. In addition, theJanuary 17, 3 veral natural gas contracts was settled by ue execu- 1983 order required the Company to refund the $250 tion of a settlement agreement on June 4,1982. The million to be received in January 1984.

settlement agreeme t provides for the payment of The Company has until April 27,1983 to appeal the

$1.0N mlh,on m eash (of which $587 milhon and $250 January 17, 1983 onler, although initial refunds pur-million were received ',y the Company on June 4,1982 rt@ required by the onler wouhl have to be made ,

and January 3,1983, resptetively, with tl ? balance of hv late March 1983. The Company does not know at this

$250 milhon to be received m January 1984) plus a '

time whether it will appeal the LPSC order.

guaranty of savings of at least $5N3 milEon in certain )

gas acquisition costs between 1982 and 1996. At a Pending the decision by the LPSC the Company hearing held on December 21,1982 the LPSC voted to had used approximately $329 million of the settlement )

require the Company to refund the settlement funds, funds to repay its short-term borrowings incurred to including interest earned on the funds, to the Com- finance its construction program and for other cor-pany's customers as soon as administratively and le- porate purposes. As a result of the LPSC onler, the gally feasible. By order dated January 17,1983, the Company accrued in December 1982 interest expense LPSC required the Company to refund to its customers in the amount of $19,218,000 relating to the funds used in two installments the funds received in 1982 and 1983 by the Company during the period from June 4,1932 under the settlement agreenient, plus interest earned through December 31,1982.

on those funds. The first refund installment is to be 19

1:1. Quarterly Hesults (Unaudited) linamliteil operating results for the four quarters of 1982 anil 1981 follows:

Quarter Operating Operating En_c h_ *l Itevenues Income Net Income (In Timusamis)

!!ui March . . . . . $213,693 $12,157 $2ti,s17 June . . . 271,169 10.021 2ti.N;o September . . .. . . . :169,Ntl 51,135 45.611 t h rember* . . . 310,5G 39,7til 18,17o 1981:

M arch . . . . . 228,!wil 27,62ti 25507 ,

. lune, . 2Tiy;s 30.979 23,835 September . . 371,111 5s.176 13.9 17 December . . . 2 4 ,615 36.3.11 25.880

  • l;>r the month of December 19s2 net income was decreased $9.913JHW) for interest expense accrue <l on the settlems nt agreement funds receiwd from a gas supplier on June 1,19s2 and used by the Company (see Note 12).

The business of the Company is subject to seasonal any interim perimi shoubt not he considered as a basis fluctuations with the peak period occurring during the for estimating the results of operations for a full year.

sunener months. Aeronlingly, earnings information for i1. Effect of Innation on Operations (l'naudited) The cost of fuel used in generation has not been The following supplementary information about the restated fnym historical cost in nominal dollars. Iteg-effects of changing prices of the Company is provided ulation hnuts the recovery of fuel costs thna;h the in accordance with the requirements of Statemeri of operation of adjustment clauses or adjustments m basic Financial Accounting Standants No. :c, " Financial rate schedules to actual costs.

Iteporting and Changing Prices". It shouhl be viewed As prescribed in Statement of Financial Accounting as an estimate of the effects of changing prices, rather Standanis No. :n, income taxes were not adjusted.

than as a precise measure.

The regulatory commissions to which the Company Constant dollar amounts represent historical costs is subject allow only the historical cost of plant to be mijusted for the effects of general innation. The effects recovered in revenues as depreciation. Therefore the are determined by converting t hese costs into dollars of excess of plant stated in terms of constant dollars or equal purchasing power using the Consumer Price current cost over the historical cost of plant is not Index for all I!rhan Consmners (CPI-il). presently recoverable in rates. This excess is reflected Current cost amounts redect the changes in specine as a reduction to net recoverable cost. While the rate-making process gives no recognition to the current cost prices of property, plant and equipment from the year of acquisition to the present. The current costs of prop- om-of panyreplacing beheves, property, plant based on past and equipment, experiences, that it w the (dl be erty, plant and equipment, which represent the esti-

"""*"d I" earn on the increased cost of its net m, vest-mated costs of replacing existing plant assets, are de-i termined by applying the llandy-Whitman Index of ment when replacement of facdities actually occurs.

j Public IItility Construction Costs OIWI) to the east of To properly redect the economics of rate regulation '

[

the surviving plant by year of acquisition. Land and in the Statement of Income from Operations presented i certain other plant assets which are not inelmled in below, the reduction of net property, plant and equip-IlWI were converted using the CPI-li. ment to net recoverable cost is offset by the gain from J The difference between current cost amounts ami the decline in purchasing power of net amounts owed.

constant dollar amounts re'sults from specine prices of I)uring a period ofin0ation, hoklers of monetary assets property, plant and equipment (as measured by the su%r a loss of general purchasing power while hohlers iIWI) changing at a rate different from the rate of "I*"""!"U. liabilities experience a gain. The gain from general innation (as measured by the CPI-Ih. the dechne m purchasmg Imwer of net amounts owed is primarily attributable to the substantial amount ofdebt The current year's depreciation expense on the con- which has been used to finance property, plant and stant dollar and current cost amounts of property, plant equipment. Since the depreciation on this plant is lim-  ;

and equipment were determined by applying the re- ited to the recovery of historical costs, the Company ported depreciation rate of the Company to the indexed does not have the opportunity to realize a hohling gain amounts. on debt and is limited to recovery only of the embe<hled cost of debt capital.

I 20 l

Statement of Income from Operations and Other Financial Data Adjusted for Effects of Changing Prices for the Year Ended December 31,1982 (In Thousands)

As Reported in Adjusted for Adjusted for the General Changes in 8'inancial Inflation Specific Prices Statements (Constant Dollars) (Current Costs) llevenues* . . ... . .. . .. $1,195,583 $1,195,5X3 $1,195,rxl Operating expenses (excluding depreciation)* . (977,188) (W7,188) (977,N8)

Depreciation . . . . . . . . .. . . . .. .. .

(45,256) (103,387) (116,629)

Total operating expenses . . . . . (1,022,47 9 0,0x0,575) (1,093,817)

Operating income . .. . . . . 171,109 Il5,00X 101,766 Other income * . . . . .. . . . . . . 59,219 59,219 59,249 Interest & other charges * (114,900) (114,900) (114,900)

Income from operations (excluding reduction to net recoverable cost)" . . .. . . $ 117,458 $ 59,357 $ 46,115 Increase in specific prices (current costs) of property, plant and equipment held during the year *" $ 231,159 Reduction to net recoverable cost . .. . $ (18,115) (76,840)

Effect of increase in general price level . . . ... .. (159,193)

Excess of increase in general price level over increase in slweific prices after reduction to net recoverable cost .. . (4,874)

Gain from decline in purchasing power of net I amounts owed . . . ... . .. . 65,600 65,600 Net . .. . . .. . . . . $ 47,485 $ 60,726

  • Assumed to le " average for the year" dollars and thus are not restated.
  • Including the reduction to net recoverable cost, income from operations on a constant dollar basis would have been $41,242 for 1982.

'"At Decemler 31,1982, current cost of property, plant and equipment net of accumulated depreciation was $1,590,155,000 while historical cost or not cost recoverable through depreciation was $2,663,369,000.

Five-Year Comparison of Selected Supplementary Financial Data Adjusted for Effects of Changing Prices In Thousands of Average 1982 Dollars l

l 1982 1981 1980 1979 1976 OPERATING REVENUES. . . $1,195,583 $1,186,2x7 $999,812 $741,335 $675,220 l

llISTORICAL COST INFOR%IATION AILIUSTED i FOR GENERAL INFLATION l Income from operations (excludmg reductic.n to l net recoverable cost) .. . . $ 59,357 $ 78,577 $ 65,102 $ 29,051 Net assets at year-end at net recoverable cost .

$ G12,517 $ 632,523 $631,130 $612.959 CURRENT COST INFOlt31ATION Income from operations (excluding reduction to net recoverable cost) ......... . . . . $ 46,115 $ 63,339 $ 51,132 $ 27,769 F.xcess of increase in general price level over ,

increase in specific prices after reduction to net renverable cost . . . ....... . $ 4,874 $ 112.013 $181,861 $200,696 Net assets at year-end at net recoverable cost . . . $ G12,547 $ 612,521 $631,130 $612,959 GENERAL INFOR51ATION Gain from declir.e in purchasing power of net amounts owed . . . . . . $ 65,600 $ 132,729 $177,321 $185,962 Average consumer price index . . . 289.1 272.4 246.8 217.4 195.4 l . .

l NOTE: SFAS No. 33 requires that historical cost information adjusted for general inflation and current cost information be provided for 1979 and subsequent years. Comparable infr nation is not readily available for 1978 and thus is not provided.

21

_ _ _ _ _ . . - - . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ , ~ _. _ _ _ _ __ _ - . - - _ _ _ _ _ _

ItECOllD OF PILOGItESS 1972-1982 l!N2 19x1 liN)

Estimate <l populati m serve <l . . 1,600,IH MI 1,585,(H H) 1,55 ?,(HN)

Electric customers -year en<l Resi<lential . . . . 17x,:Hio 169,998 157,191 Commercial 52,(H)1 50,571 1x,(117 inclustrial . . .

fi,tils 6,655 6,Klfi Other. . 3,10x 3,%2 _ _3,50 Total electric customers . S lo,:tx e a.io,579 515,tH)1 Electric operating revenues ($4NHH Resi<lential . . . $ ;;G1,005 $ :111,555 $ 2fi5,0x0 Commercial . . . . 182,11x1 Itil,653 123,656 In<lustrial . . . .

37-1,(HiO 525,319 MX,177 Other. _ 71,5:}7 . 8#1,2(11 _ _1 011,s.11 0 Total electric operating revenues . . $1,195,5x3 $1,117,761 $ 85 !,52:1 KWil sales (millions)

Resi<lential . . . ti,129 ti,105 6,31)x Commercial . . .

3,130 3,016 2,x76 Inclustrial . .

12,997 13,(Hi7 II,1Hi3 Other. . . _ _l,385 _ _ _ _l,6#11 __ _2,70x Total sales . .

23,911 21,152 21,915 Resi<lential customer (lata Average annual use-KWil ....... 13,515 13,791 11,177 Average annual revenue per KWil . 5.fi6e 5.33c 1.1 le Commercial cue. ;mer < lata Average annual use-KWil ..... . 60,1HH) 60,669 60,129 Average annual revenue per KWII .. . 5.85e 5.16e -1.30e l'eak System ilemanil (31W) . .

1,259 1,56 -1,07x System input (KWil in millions)

Generation . .. . . 11,510 15,171 16,t10 l'urchaseil power i 1 0,51_7 9,7 15 _ _ 8,(170 Total system input . "i,107 S,21(i  %,110 Fuel cost for generation ($1XHH . . . $ 3x7,710 $ M6,786 $ 296,820 Generating capabihty (31W) . 1,6 5 1,6 5 1,6 5 Ileat rate-BTU l'er KWil generate <l . . 10,800 10,6x1 10,751 Operating income ($(HHH . $ 173,109 $ 153,1% $ 116,301 Net income ($0MH . $ 117,-15x $ 121,169 $ 100,ti7ti Gross electric plant ($(HH)) $3,131, l(11 $2,611,(HH) $2,319,216 Total assets ($1HHH . . $3,1102,112 $2,310,201 $2,07x,115 Capitalization ($(HH))

Long-term alebt. ... ... ...... $ 917,596 $1,001,209 $ X28,9x9 Preferre<l stock, with sinking funal . . . . 160,101 121.3x1 121,381 Preferre<l stock, without sinking funal . I15,882 115,882 115,x82 Common equity . _ G19,xxl _ .1115,895 _. 5 (i1,1(19 Total capitalization . $1,912,160 $1,K$ 1,3117 $1,660,3_61 Employees-year en<l . 2,721 2,199 2,312 22

l I

4 l

l

(

r 1970 1978 1977 1976 1975 1974 1973 1972 1,509,000 1,455,000 1,345,000 1,301,000 1,250,000 1,225,000 1,187,000 1,150,000 443,527 427,938 395,479 381,213 366,242 356,479 316,088 334,375 46,848 41,8&l 40,096 38,632 36,1(M 35,014 33,839 32,608 7,162 7,518 7,651 6,586 5,821 5,421 5,732 6,333 3,173 3A14 2,770 2,Gli 2,496 2,125 2,313 2,247

! 500,710 483,381 445,91Mi 432,065 410,728 399,342 387,973 375,5G1

$ 180,361 $ 146,326 $ 124,500 $ 93.712 $ 87,819 $ 85,791 $ 78,809 $ 71,622 85,983 (18,328 55,398 42,505 39,789 38,092 34,049 30,793 212,853 141,803 114,874 77,278 G1,386 65,264 53,453 44,827 78,2_7J6 99,918 h4,179 117,782 72,850 53,605 43,085 34,980

$ 557,47(i $ 456,375 $ 378,951 $ 331,277 $ 2G1,844 $ 212,752 $ 201),396 $ 182,222 4

5,99f> a,862 5,334 4,597 4,346 4,95(i 3,951 3,661 2,721 2,fi21 2,2(18 1,965 1,852 1,671 1,51Hi 1,468 11,3b8 9,&S5 9,028 8,0(18 6,600 6,133 5,823 5,215 3,147 4.541 4,:J22 6.921 fi.3T>9 6,788 642] 5,576 23,252 22,712 20,952 21,551 19,157 18,518 17,997 15,923 13,758 14,063 13,680 12,328 12,028 11,249 11,594 11,220

3.01c 2.50c 2.33c 2.01c 2.02c 2.17c 1.99c 1.95c i

', 59,363 G),498 57,502 53,115 51,940 48,417 47,986 45,865 3.16c 2.60c 2.41c 2.16c 2.15c 2.28c 2.13c 2.10c

1,091 3,852 3,515 3,180 2,883 2,699 5G1

, 2,389 ii 18,129~ 21,251 20,204 21,511 18,931 17,904 17,832 15,768 5,S60 2,799 1,901 1,07_7 1,151 1.591 1,031 1,1 15 21,289 21,050 22,105 22,618 20,085 19,498 18,866 16,913

$ 190,2211 $ 168,117 $ 141,236 $ 135,211 $ 85,131 $ 76,846 $ 56,597 $ 41,760 4,612 4,603 1,447 4,392 4,3 16 3,5(19 3,481 2,580

> 10,625 10.185 10,202 10,03(i 10,198 10,345 10,198 10,105 h

i $ 73,861 $ 69,310 $ 6?,556 $ 59,053 $ 59,629 $ 59,146 $ 52,636 $ 46,100

$ 65,129 .$ 53,744 $ 44,406 $ 39,277 $ 43,695 $ 40,886 $ 36,946 3 32,226

)

i $2,069,10fi $1,792,952 $1,509,785 $1,309,439 $1,172,911 $1,077,798 $ 933,393 $ 826,139

( $1,312,3115 $1,557,157 $1,298,751 $1,158,262 $1,051,212 4 916,933 $ 811,275 $ 719,120

$ 827,130 $ 728,718 $ 566,315 $ 575,809 $ 519,088 > 468,987 $ 389,18ti $ 312,197 92,990 - - - - - - -

145,882 110,809 110,809 80,776 80,776 80,776 70,760 70,760 .

487,411 417,192 363,763 332,725 307.3fil 217,174 235,276 208,914 l

$1,Ti>3,7_43 31,2 16,741) 31,040,887 $ 989,310 $ 907,225 $ 79fi,937 $ 695,222 $ 621,871 j 2,329 2,21(i 2,129 2,118 2,104 2,089 2,090 2,003 <

l I

I 1 l

l...---. . . - _ . _ .- , . -. . . _ ., . ,, ..m,___ ____-_..,..-._.,_...-m.. . . , ~ . _ . . - - .

A. . . . ..

l l

DIItECTOItS DIItECTOltS EMEltITUS if IN I I '

3 ,

NN ,

N h, s *

\3[;

. I

., l

$  :- ( 9 s l o .

i From left Donahl II. Fiske, Oak Grove, I.ou- I ip- isiana, Itetired llusinessman, Former Director of g#

g~' the Company: W.i). Turner, New Orleans, Lou-isiana, Itetired, Former Chief E:secutive Officer I of the Company: G. C llawls, New Orleans. l Louisiana Itetired, Former Chief Executive Of- i Geer of the Company; and Charles .J. Cassidy, l Ilogalusa, Louisiana, Chairman of the lloard, i

' First State llank and Trust Company.

s

/ -

f

/ -

DIVISION MANAGEIIS i j

o l

? _

B :

Clockwise from top left: W. Clifford Smith, h *) .5y g --

flouma, Louisiana, Presi lent. T. Ilaker Smith &

Son: .I.31. Wyatt, New Orleans, Louisiana.

i Chairman of the Iloard ard Chief Executive Of- -

V i ficer of the Company: F.A. Itodrigue, Harahan, g I Louisiana, I!etired, Former Chairman of the .

l Iloard and Chief Executive Offker of the Com- , .

h i pany: Ihrry 31. England (inset), 31etairie, -

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j Louisiana President, Itiverland Financial Ser- .

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vices Company; . lames 31. Cain, New Orleans,

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Louisiana President and Chief Operating Officer -

of the Company, and President and Chief Execu-

-E i tive Officer, New Orleans Public Service Inc., l f, >m left. .I.Q. Cipriano,31anager, %'est Bank ,

Tex it. Kilpatrick, West 31onroe, Louisiana, U. .".'""; Charles E. \ aughan, .ir., Vice Presi- ,

President, Central American Life Insurance j dent-D.ivision Manager, ret, red. i January 1,11N1:

Company: Floyd W. Lewis, New Orleans, Carl C. Smith,31anager, Northern Division; and Louisiana, Chairman and President, 3 fiddle South Utilities, Inc., and H. Duke Shacklefoni, 'I".".ep.I. SicCloskey. .ir, 31anager, Southeastern U' '""'

Ilonita Louisiana, Agricultural Interests.

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OFFICERS AND DEPARTMENT HEADS

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l From left in all captions: G.F. Delery, Vice Presi- N.J. Briley, Assistant Secretary; L.V. Maurin, dent - Consumer Services; K.M. Brumfiehl, re- Vice President - Nuclear Operations; J.M.

tired February 1,1983, Vice President - Ad- Mooney, retired January 1,1983, Vice President i ministration; D.E. Knowles, Jr., Vice President - Governmental and Public Affairs; and R.N.

/ - Division Operations; and G.D. McLendon, Garrett, Jr., Assistant Treasurer.

Senior Vice Pretident - Operations.

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J.J. Cordaro, Vice President - External Affairs; S.G. Cunningham, Jr., Vice President - Direc-

} W.H. Talbot, Secretary and Controller; and J.J. tor of Rates and Research; D.L. Aswell, Vice Saacks, Chief Engineer. President - Power Production; and J.H. Erwi.1, Jr., Vice President and Treasurer.

3 T.W. Boatright, Assistant Treasurer; R.M. Red-l head, Jr., Director of Public Relations; E. A.

F> isch, Manager of Corporate Services; and L.F.

l McCrocklin, Jr., Director of Personnel.

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