ML19350F112

Annual Financial Rept 1980

ML19350F112
Person / Time
Site:	Fort Calhoun
Issue date:	06/19/1981
From:	OMAHA PUBLIC POWER DISTRICT
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ML19350F111	List: ML19350F110 ML19350F112
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NUDOCS 8106240227
Download: ML19350F112 (28)

Text

l g Omaha Public Power District

• Annual Report 1980

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Contents Executive OfDceS 1980 lbghtsghts 3 Electric Buildmg President s Letter . 45 1623 liarney Street Direc tors 5 Omaha. Nebraska 68102 General Slanager's Letter 6.-

4 Assistant General %Ianageri R(ports 8-12 TruSICCS Fmancmg 13 Storgan Guarant) Trust Company of New Wrk.

Auditore opimon .13 New %rk. New %rk ( 1952.1954.1956.

Italance Sheets 14 15 195' 1958 1961.1966.1968.and Statements of Net I.arnings and 1969 Bonds )

Accumulated I.armngs Reinsested The Northern Trust Company. Chicago. Illinois in the ilusints* .16 (19 2.19 3.19'5 Series A and B.19~6 Starements of Changes in Series A and B. and 19~~ Series A. B. and Finanual Posioon .1 - C Bonds)

Notes to finantial 'tatements 18 19 .

Supplementan statement of I arnings N"b from ( ontinuing t >pt ranon Adiu ted The Bank of New Wrk. New Wrk New Wrk for Changing Prats 20 ( 19*5 Series A Bonds)

Supp!cmentan ineacar comparison Storgan Guarant) Trust Company of New York, of Selected finantia! Data Ad i usted for New Wrk. New Wrk (1952.1954 1956.

the I.ffects of ( hanging Prn es .20 195' 1958,1961,1966.1968.1969.19'2.

Notes to the s upplemt ntar3 Financial 19 3.19's Series B.19 6 Series A and B.

Data Adjusted for thi iifccts 19-' Series A. B. and C Bonds. and 19'9.A of ( hanging Prnes .21 Revenue Notes)

Net Receipts and D(ht 5cnit c Coserage .21 Continental Illinois National Bank and Trust I:let trn 5ptcm Rcs enue liond, Company of Chicago. Chicago. litinois outstanding

.22 23 (1952.1954.1956.195',1958.1961.1966.

1980 19 9 om pa rison s .24 1968 and 1969 Bonds)

I:lectric starntum .2s The Northern Trust Company. Chicago. Illinois Dnision Slanagers .26 (19~2.1973.1975 Series A and B.19 6 -

OPPD Scn ne Arca \ tap .26 Series A and B. and IV" Series A. B and Sird Continent \rca Pow er Pool 2- C Bonds)

The United States National Bank of Omaha, g,TQ

. x 3 Omaha. Nebraska

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h About thefront cnd ba :k cosers The photos on the f coters and Ibrouglute; ' thss annual report shou

{ songe of the people uv on u ere responssble for i

R Osnaba Pubisc Pou rs Dsstrsct's suc cesses sn 1980

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Tha t report is a salu'.* to all of the people at OPPD u hose de dscation and expertsse ensure our custorners a retsable and dependable suppQ of elec trk sts Left Aensor "casntenance man lisil OBrsen as one reason the generatsny unsts at Ibc Aorth Omaha Poswr stafson are in top s ondstoon

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1980 IIighlights Operating Revenues Average Residential 1.'se Operating revenues for 1980 were Average annual use per residential customer in

$ 2 27,014,000, an increase of 532.927.000, or 1980 was 10.398 kilowatt hours. an inc. ease of 17 0%. over 19 9 operating revenues 49 . or 5 0%. over the 19'9 aserage ot 9.901 of $194.087,000. kilowatt hours. The average annual residential use by OPPD customers was 15.9% above the Operation and Maintenance Expenses national average of 8.973 kilowatt hours as Operation and snaintenance expenses for 1980 computed by the Edison Electric Institute.

were 3135,305.000 an increase of

$23,549.000, or 21.1%, over 1979 operation herage Residential Cost and maintenance expenses of $111.756,000. The District s residential customers paid an average of 4 03c per kilowatt-hour during l Net Operating Revenues 1980. compared to 3 39c per kilowatt hour in i i Net operating revenues, before depreciation. 1946. OPPD s initial y ear of operation. OPPD l

w cre $85,518.000 an increase of 38,439,000, customers paid 18 3 t less than the national or 10.9%. over 1979 net operating revenues average of 4 93c per kdowatt hour as of 57",079,000. computed by the Edison Electne Institute.

Net Earnings Reinvested in the Business 1980 Construction Expenditures Net earnings reinvested in the business totaled Expansion and improvement of system i 39,486,000, a decrease of 510.15 5,000. or f2cilities during 1980 required net 51.7%, under 19 9 net earnings reinvested in construction expenditures of $41.897,000.

the business of 519.641.000.

General Business Sales left Expe 'tenced technicians hke Charlie Houard.

! General business sales to District customers d /"*d" #" 'h' '#""8 S"*# D'Pd*'"#-

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were 5.14 3.8'4.000 kilowatt. hours in 1980. an increase of 128.390.000, or 2.6%, over 19 9 #i86' Dd" D#l""d d 'Fid7 'P"idl'8' 8" 'h' SJ 8" '

sales of 5,015.484.000 kilowatt hours N ""*"D'Pd""#"' UedP' / d '#d" responssblefor maintenance of relays and Average Nurnber of Customers #""#*# #"#""' '

1he District served an average total of 211.84' e.. ['

customers in 1980. an increase of 2,516. or , ,

1.2%, oser the 19~9 average total of .

. . I 209,331 customers * ,

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President's Letter l

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Spence, who had been semng on the Board p^r

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since being appointed by Governor Thone in fuly 19'9, was elected to a two year term in p ' 4.s - November 1980 He was elected

• F, vice president of OPPD at the February 1981

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. 3 Board meeting

, 'Y, At OPPD 1980 was a moderate year of i 'j . . % system growth and fmancial gain General business sales were up 2.6 percent with the e largest increase coming from residential

. , customers That category showed an increase

. of 6A percent over 1979. Sales to other

, ig e utilities, however. dechned sharply,12.2 i i percent, bringmg total energy sales to 0.8 r

percent below the previous year.

Ugy Operating resenues were 17 percent higher in 1980 than the previous yea *. That increase is i

primarily attributable to record residential j

L sales during the July and August heat wave, a l March 1980 rate adjustment, and increased l

production costs recovered through the fuel l and production cost adjustment.

( A 21 percent increase in operation and FrankJ. Ilogan, President of Omaha Public maintenance expenses accompanied the higher Power District, retired Mutual of Omaha officer. 1980 revenues. Most of this was attributable to inflation, but other factors contributed. For example,1980 fuel costs of $71,500,000 were As president of Omaha Public Power up 20 percent over 19"9. The primary reason Distnct, I welcome the opportunity to address was the first ful! year of operation of the

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the many people who are interested in the progress aad growth of our organizat on On Some increases in expenses can be behalf of the directors, management. and attributed to the growing costs of meeting employees of the utthry. I am pleased to regulatory requirements. The District was present our report to Governor Charles Thone, required to ;, pend more than $11,000.000 last the Nebraska Legislature, Nebraska members of year to increase the Fort Calhoun nuclear Cong* css, ofbcials of the State, counties. and station's ability to withstand a communities we serse, our bondholders. and major earthquake.

our customers. Two devastating June storms also played a During the past year, we welcomed two new significant role in increasing the utility's 1980 members to our Board of Dire (tors Rey are operating expenses Restoration costs for these Keith B Tdquist, president of Mission storms alone were approximately $2.000,000.

Television and Appliance Center. Inc.. and The third and fmal segmerit of a three part ownerepresident of flusker llawkeye rate increase approved by the Board in 1977 Distributing Company. Inc., and Richard P became effective in March 1980. The new rate Jeffnes, executive vice president and general schedules resulted in ir. creases of counsel for Godfather's Investments, Inc , a approximately 8 5 percent for all customers l

national food franchisor Both gentlemen began The increase for residential customers was j sixqear terms on January 8,1981. Mr Edquist approximately ~ 8 percent succeeds Robert K Corn, and Mr. Jeffries in spite of this increase OPPD residential succeeds 5 SamJensen. customers paid an average of -103 cents per I thank the other directors for their untiring kilowatt hour dunng 1980, which is 18.3 efforts in 1980. Michael F Egan. John P percent below the national average. At the Munnelly, Mary Alice Race. and Gene P Spence same time, average consumption among all played signihcant roles in establishing and OPFD's residential customers in 1980 climbcd guiding Distnct policy this past year. Mr. to a record high.10,398 kilowatt hours.

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'!he future looks good for OPPD. The In concicsion, all of us at OPPD - the District is a utdity made up of dedicated and directors, management, and employees -

industrious people with a clear and consistent pledge our continued cooperation with goal - to provide quality service at the most Governor Thone, the Legislature, the Nebruka reasonable cost possible. ~lhe utdity's present Power Review Board, the Nebraska generating capacity is suthcient to meet Congressional delegation, and the people customers' needs through the early 1990's. we serve.

41th an adequate supply assured, the big task y is the fight against infation. To win that 6ght, we will t e watching our operations and q -

tinances closely. We will be working hard to hold expenses down, and we will be Frank J. flogan addressing the need to increase resenues. Pressdent Directors

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Gene P Spence. Michael F. Egan. John P. Munnelly.

\tce-President. Secretary General Treasurer: SC.\tanagert Pres.Jent, trestern Afanager: Laket tew Postmasten Omaha Secursties Omaha. Properties Om ,%

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Keith B. Edquist. Richard P.Jeffries, Mary Alice Race, Board Board .stemben Press. tent. Board Stemben Executtte .stember. Retsred, teterans

.stsssson Telet ssson & bice Pressdent, GodfathWs Admsnsstration, Omaha.

Appisance Center Inc., intestments. Inc , Omaha Bellet2nr

i General Manager's Letter in better utilizing Distnct resources Programs have already been successfully implemented in sescral areas. Berchts from these programs continue to accrue and are now conservatively estimated at 5823.000 annually.

Last August, the Nuclear Regulatory g Commission granted permission to increase, by

, ya 33.000 kilowatts, the output from the Fort t Calhoun Station. His brings the plant's net M capabihty to 4'8.000 kilowatts and enables OPPD to produce more electrictry with its M.dhM' g least expensive fuel. This results in estimated Jp, g savings to our customers of

e 7 ', 82,900,000 annually.

~+ The District took advantage of a scheduled g refuehng outage at the Fort Calhoun Station during early 1980 to make a number of

[" modibcations required by the Nuclear

Regulatory Commission. Although these activities took longer and were more o itly

, than anticipated, the station was back on line, at 100 pcrcent power. In time to help meet Lloyd C. Shalla, Ger. al Manager, summer peak requirements.

Omaha Public Power ; istnct Nebraska City Station, which went into operation in May 1979, performed sery well nroughout this report are photos of some during its first full year of operation. The of the people who were responsible for the 585,000. kilowatt unit acFeved a direction and operation of Omaha Public commendable 78 6 percent availabilitt factor Power District dunng 1980. I'm pleased to by mid-September when it was taken out of present to you some of the more outstanding service for scheduled maintenance accomphshments made by all of the dedicated and inspection.

and experienced OPPD people during 1980. It The 1979 peak load was surpassed seven was a good year for our utility and its times in 1980. De new peak now stands at customers. and much of the credit must go to 1,348,400 kilowatts which is a 6 6 percent these people. increase over the 1979 peak. Consumption of OPPD expenenced a drain on operating electricity by the average residential customer funds during the first half of 1980 primarily increased by 5 percent from a total 9.901 because of slower load growth, two major kilowatt. hours in 19 9 to a record high 10,398 storms, and an extended outage at the Fort kilow att hours in 1980.

Calhoun Station. To compensate, a financial During 1980 OPPD energetically prepared recovery plan was initiated in July aimed at for i:s part in the 19~8 National Energy Act.

reducing payroll, inventories, and operating Working in conjunction with seven other and construction costs The plan resulted in a Nebraska utilities. OPPD doigned a Residential recoverv of over 516.000.000, thus ehminating Conservation Service Program to be offered to the necessity to borrow funds or increase rates its customers in 1981. This program is Fuel management activities initiated dunng designed to help homeowners save money by the year also resulted in significant cost using energy more efSciently. Four public savingt in October, a contract with the hearings were held during 1980 as part of Department of Energy was modi 6ed, enabling another aspect of the Natmnal Energy Act. As a OPPD to utilize uranium enrichment services result of these meetings and the public's input.

previously contracted for. nas change resulted the Board of Directors adopted 12 standards in sasings of approximately s5.000,000. In regarding the District's ratem.Nng policies February 1981, the Distnct exchanged a The North Omaha Power : tion. w hich is supply of uranium in its initial stage for the District's oldest coal fired station. was a conserted uranium. resulting in estimated workhorse for OPPD customers in 1980. With savings of 51.000.000 At that same meeting, scheduled outages at our othe najor plants, renegotiation of a major coal contract was the North Omaha Power Station produced approved his will result in savings of nearly 40 percent of the District's total 528.500.000 during the next three years. generation dunng the year. De heavy demand he District continues to stress productivity p! aced on this station during the year improvement programs which aid management underscored the continued value of the 300R ORMA

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station's hve coal-dred generating unis. He holds a bachelor degree from Creighton In addition to the North Omaha plant, University and a masters from the University of electricity produced by OPPD during the year Nebraska at Uncoln.

came from the Fort Calhoun nuclear station, Finally, I look back on the activities of 1980 the Nebrask' City Station, and the oil- and as evidence of the dedication and industry of gas-6ted umts at the Jones Street Station and the people at OPPD. With con 6dence in those the Sarpy County Station. The District's 13 same people. I look forward to the continued units produced a total of 6,581.819,000 successful operation of Omaha Public kilowatt hours in 1980. Of that amount,69.3 Power District.

percent was generated from coal,30.3 percent from nuclear. 0.2 percent from oil, and 0.2 percent from natural gas.

The District was saddened in Stay 1980 by l the untimely death of Assistant General -

31anager Theodore Short. 31r. Short died in Stay at the age of 58 following a brief illness. t A During his 28-year ;2rcer at OPPD, Str. Short's Lloyd C. Shalla responsibilities included the operation of all General .tranager OPPD generating stations and the construction of many of the units.

Milliam E. Stiller succeeded Str. Short. A

31. year District veteran. Str. Stiller formerly served as manager of the Engineering Division. Left apprentice electrucian Bob trbetan

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, lie is a graduate of Iowa State University and a contrsbutes bss experience and know. bow to the

registered professional engineer. smooth operation of the North Omaha l Assistant General Sianager Bernard W Power $tation. j Reznicek returned to OPPD in mid 1980 Right

Cbemsst Ron Oson' ski and other specsalssts at l following a one year absence. During his the Nebraska city station proride aluable absence,31r. Reznicek served in an executive snformation adedfor the efficsent operation of position with Sierra Pacific Power Company. thefacility

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Assistant General Manager's Report area during 1980. This involved training employees in additional phases of operation.

I with emphasis on reducing time required to process a request for new service. Indications are that the average time requirements have been reduced from 18.6 to 8.3 days.

7 The District's microwave communications d system has been expanded to include two new sites, to provide an additional communication

& hnk with neighboring utilities and to eliminate

1. - seseral leased circuits. These changes will result in a savings of nearly $5,000 per month.

N Major construction projects completed Gerhardt P. Bahle during 1980 include new substations at ,

Assistant Cencral Auburn and Elmwood and 15 miles of l Afandter ;61,000 volt transmission line from Auburn, Nebraska, to NPPD's Cooper Nuclear Station.

The design, operation, maintenance, and An automated Service Data Request (SDR) construction of all transmission and System was implemented during 1980 which distribution facilities, as well as the design of Provides satellite othces immediate access to power stations. are the responsibilities of the the utility's central information files. Requests Electri: Operations and Engineering Divisions. for information can now be handled During 1980, OPPD's distribution system more quickly.

was severely damaged by three major storms. By reducing mileage driven, using more In June, oser 35.000 customers were without diesels. and purchasing smaller cars and trucks, power from the first storn, ad 36,000 from the District saved approximately 13.000 the second. To aid in restoration. 27 crews gallons of fuel in 1980, his was particularly from the District's rural area were called to significant because the cost of vehicle fuel rose Omaha The cost of service restoration was 46 percent during the year.

82.000,000. The third, an ice and sleet storm, With the introduction of cable television hit December leaving 2,500 south rural throughout the OPPD service area, customers without power The restoration cost considerable time was spent by the l

of this storm was $150,000. Distribution Services Department during 1980 The Engineering Division was heavily overseeing the attachment of cable equipment involved in 1980 with the Nuclear Regulatory to District poles.

l Commission's mandated modifications of the seismic supports for the Fcrt Calhoun Station's piping sy stems gegou. Storeroom foreman Al DuPree ensures that i A new Customer Service Representatives all necessan supp;tec and parts are in stock at the Program was implemented in the rural service North Omaa Pou er Station.

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Assistant General Manager's Report ,

De Governmental Affairs Division was attentive to local. 3 tate and federal legislative 7

matters involving the utility industry. Input on these matters will continue to be sought from e Senators Exon and Zorinsky, Representatives d Bereuter. Daub, and Smith, and Nebraska !cgislators.

• . A continuing educational program on

- _A nuclear power and the Fort Calhoun Station

, . . 'D was carried our during 1980. He program was based on information gathered in a customer Q' f. ~ attitude survey and provided answers to s

frequently asked questhns ; bout Daniel D. Kelly nuc! car power.

Ass stant General The annual electric safety program was again Afanager conducted in 1980. It mcluded safety messages to children and adults. More than 100,000 Customer Services Operations, " safe kite flying' brochures were distributed to Governmental Affairs, and Public Relations elementary and junior high students.

make up the three divisions in the consumer Adve-tising. posters. public service messages, affairs group. Dan Kelly, who heads the group, displays, and news stories wert also used to also has responsibility for special projects in tell the electrical safety story.

corporate and public affairs. Edorts continued durmg 1980 to attract new The wise and prudent use of energy industries to Nebraska through the Area Development Department. Contacts were remained a major concern of OPPD this past year. A public information program made with major employers throughout the encouraged customers to use energy wiselv. country inviting them to consider expanding Customers were urged to shift usage of ' in Omaha' Southeastern Nebraska.

electricity away from afternoon " energy rush A new program to encourage the use of the hours" on hot summer days to otTpeak electric heat pump was initiated in 1980. This morning and evening hours The liomemaker was done because of the heat pump's high Customer Services Department aided in these efficiency and low energy requirements which efforts with more than 43.000 dircct customer offer benefit'sto customers and the utility.

contacts during the year.

Under a Residential Consenation Service (RCS) Program, home energy audits will be available to customers. This program is part oi Left. Apprentice instrument and control technicsan the National Energy Conservation Policy Act Gary 3fitchett is one of many spectatssts and (NECPA) The audits will include an inspection technicians ubo ensure the retta6te and rafe of the home and recommendations for energy operation of the North Oma*>a Pou erStation.

improvements. Assistance wtll be offered in g,ght Operator Ed Holling's experience arranging installation and financing of contrsbutes to the oterall efpctency of theJones conservatiots measures. Street Station generatingfactitty

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( 3 ear The unit also successfully completed its first full year of operation dunng 1980 and has

, proven to be dependable and economical.

Two units. Numbers 1 and 3. at the North t

Omaha Station were overhauled in 1980. The

"'5.000-kilowatt Unit Number 1 is the District's

{ oldest operating coal fired unit. It has performed well since 1954.

The Fuels Division was active in 1980

~. s renegotiating fuel contracts. These activities will result in total savings of $40,000.000 over a three yur period. A coal contract was amended in February 1980 saving 85.500,000.

4111iam E. Miller stenegotiations began on a second coal Assistant General contract which culminated in February 1981 Manager with a projected savings of $28.500.000. A contract change for uranium enrichment Environmental & Regulatory Affairs. Fuels. sersices was also completed in 1980 and Production Operations Divisions are all for a savings of approximately 3 5.000.000, and closely associated wi:h power stations and the an exchange of nuclear fuel was arranged for production of electncity As a result. a great another 31.000.000 savings. .

deal of their 1980 activities included The Production Operations Division

preparation to meet summer peak load continued utilizing work force management requirements which were greater thaa Pnnciples in 1980. To date, these activities expected One part of these preparations was have resulted in increased productivity and the scheduled maintenance at three savings of 5663.000.

power stations _ OPPD purchased and sold large amounts of The Fort Calhoun Station w as out of service electncity to help meet the District's load in 1980 for a scheduled refueling as well as requirements and to take advantage of inspection and maior maintenance All plant economic opportunities. The System safety systems were checked and the reacto Operations Department purchased 92.000.000 containment building passed a rigorous leak kilowatt hours of economy electricity and sold rate test. While the plant was out of servict a 14.000.000 kilowatt hours during the year.

series of safety modthcations w ere completed The savings for District customers as a result w hich increased the plant's ability to withstand of these exchanges totaled 53.300.000 a major earthquake The nuclear unit completed its seventh full year of commercial operation in 1980 It has no r produced more than 18 000 000.000 kilowatt. hours at an Left. Operations clerk Fred Dollsson bandles estimated savings for customers of trouble calls from customers for the Electric neart) $100.000.000 Operations Dae esson.

The 585.000-kilowatt Nebraska City Station Right Jmy Farrusch is part of a team of employees undern ent its first major scheduled u bo uork to make a customer's contact uith the 3

maintenance and inspection during the past District a pleasant experience E m p

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1 Assistant General Manager's Report l homes. The program will be evaluated on its abdity to help manage loac,, as well as

. customer acceptance.

A second study was initiated in 1960 to measure customer habits regarding the use of electricity. Niagnetic recorders were placed in Q .

the homes of 230 randomly selected residential customers. The patterns from the study will provide valuable forecastingdata.

The meter rerouting project implemented in 1980 resulted in a first. year savings of $70.000.

A 13 percent reduction in metropolitan walking routes resulted i'i reduced manpower Eldon C. Pape needs and eliminated 3 percent of

.4ssistant General departmental overtime.

3#d"d8'" The District held four public hearings in July concerning the appropriateness of rate The District's tinancial and p.anning standard 3 proposed by the Public Uti!ity activities are administered by a group of rive Regulatory Policies Act ( PI'RPA). As a result of Divisions - Corporate Accounting. Corporate these meetings. the Board adopted 12 PURPA Forecasting and Analysis. Finance. Financial standards reflecting OPPDi ratemaking Auditing. and System Planning. practices and policies Financially.1980 was a moderate year. Sales Automatic bill payment was offered to OPPD to residential customers were up 6.4 percent. customers in late 19 9. Since then.13.000 howes er. total energy sales dropped 0 8 customers have taken advantage of the percent froin the previous year. Both total program and are now paying their electric revenues and operating and maintenance servn.e bills through their bank or savings expenses were up. resulting in net operating and loan.

revenues of 585.500.000 for the year The Treasurv Department pursued an N1anagement control and productivity aggressive program of cash management improvement were stressed in 1980.with the during 1980. This program involved changes in continuation of the Operations Analysis systems and procedures, and the introduction Program. Benetits are now estimated at of new cash management techniques. The 5823.000 annually program produced subs antial earnings for An experimental Load .\tanagement Program the District.

was initiated in 1980 to study cond control the i electrical usage habits of volunteer residential j customers. Through this program. the District  !

controls the use of maior electric appliances left. Senior relay specialist Nick Koch's expertsse in in 50 homes, and the use of air conditioners in electronics makes bim a eatuable member of the i another 93 homes. OPPD monitors, but does $ystem Protection Department. ,

not control, electrical usage in another 93 Rigbt instrument and control coordinator Harold Christopher is part of a team of specialists and j tecbntcians at the Nebraska CityStation.

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l Assistant General Manager's Report 7 - - --- ,05 OPPD's first word processing center was

" installed during the year and is presently providing service for three divisions. This service wdl be emphasized in the future.

An Early Identification of 51anagement

% Talent Program was developed during the year to identify employ ees with interest and

/ potential for advancement. This program is essential to lor.g range personnel planning.

Guaranteeing the safety of employees and customers continued to be an important activity at OPPD in 1980. Certification of

' District employees in cardiopulmonarv '

f *'",*',d, [*h resuscitation (CPR) and first aid training

• . d Nanage, continued throughout the year.

lican emphasis continued to be placed on the Smith System of safe driving program Employee Relations. 51anagement Systems during the year. As a result, vehicle accidents Services, and Staterial 51anagement Divisions were reduced by 22 percent.

are responsible for District corporate services.

In an effort to provide continuing financial The Staterial 51anagement Division 5 ity for its retirees, the District's Board coordinated the initiation of an inventory control program in 1980. When completed. approved revisions in the pension plan in 1980. larger contributions by the employees this program will minimize inventerv levels and the District will pay for these while assuring availability of material to s atisfy increased benefa operational requirements -

The District continued to encourage and 5f anagement Systems Services expanded emphasize educationa' activitics during 1980.

computer usage in 1980 by addmg and Employees received assistance for outside upgrading seruce in several important areas of educational programs and numerous in-house the District s operations In addition, a new .

1B518100 computer was installed at the Jones were conducted.

Street 5tation This marked the imtial step toward distributed processing w hich will proside satellite computer installations access to the District's major corporate computer. A left //cr6 Wss. manager-Account Serr ices. es one of ten member coordinating committee was many loyal employees u bose long expertence established during the year charged with makes the ut:Irri strong and reliable.

monitonng the District's data processing needs Right. System operator Roge- mnderpool as one of in the future and helping determine computer servral operators u bo contribute to efforts to meet and system priorities on a District-wide basis. customer demand.

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Financing Auditors' Opinion in Det.cmber 19 46. the District funded the Omaha Public Pawer District:

purchase of the Nebraska Power Company We have examiacd the balance sheets of with J bank loan for 542 000.000 Resenue Omaha Public Power District as of December bonds were issued in Februars 194' to pay otf 31.1980 and 19 9.and the related statements this loan Since then. 5135*.200 000 of of net earnings and accumulated earnings additional revenue bonds have been sold. reinvested in the businesy and of changes in The District retired 59.915 000 of resenue financial poution for each of the three years in bonds in 1980 These retirements bring the the period ended December 31.1980. Our t.>tal of bonds redeemed and refunded through examinations were made in accordance with December 31.1980 to 5518.185 000. leaving generally accepted auditing standards and, an outstanding bonded debt of 5881.015 000 accordingly, included such tests of the at yt ar.end. .ccounting records and such other auditing Since the original purchase of properties. procedures as we considered necessary in gross additions to utility plant amounted to the circumstances.

S t.3 2 4.020.'13. and cash and other net assets have increased by $142.833.389 Property n our op n on. such financial statements retirements durir$g the same period amounted present fairly the financial position of the to $8%.149.9'6. Earnings reirnested in the tnct at December 31.1980 aM m and District at December 31.1980, was the results of its operations and the changes in

$ 3 21. 2 28,1 '0. an increase of 59.485.94 i over its financial position or each of the three years the 19 9 ye.c.end total At December 31. in the period ended December 31.1980. in 1980. total net investment in utility plant c nf rmity wi'h generally accepted accounting amounted to 51.223.659.490. an increase of P6nciPlc5 mn$istentlF JPplied during the

$56.215.*90 over the December 31.19 9. period except f r the change. with which we cumulatise total. c neur. n 19 9 in the meth,,d of accounting for unbilled revenues as described in Note 8 to the financial statements

.tfachensst Wm .tlauer anst hu co-tcrirkers at the North Omaha Potver Station perform jobs that allour the generatsng facutstses to operate at DELolTTE HASK1N5 & SELLS optsmum ejficiency b 5# ' '

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BalSnce Sheets, December 31,1980 and 1979 ASSETS NOTES 1980 1979 (thousands)

UTILITY PLANT - At cost: 2.3.6 Electric plant (includes construction work in progress of $36.335,000 and $30.572.000. respectively) . $1,098,693 51.057,776 Less accumulatect depreciation . 202,776 171.010 Electnc plant - net 895,917 886,766 Nuclear fuel- at amortzed cost 124,966 109.660 Utahty plant - net . , 1,020.883 996.434 CONSTRUCTION FUND 3 3.595 37.480 ELECTRIC SYSTEM REVENUE BOND FUND (Net of current) . 3 44.479_ 44.747 DEBT SERVICE FUND 3 11.016 11.021 SEGREGATED FUND (See contra) . 3 5,011 4.914 CURRENT ASSETS:

Cash . . . 47 49 U.S. Government Secunties - at amortized cost which approximates market . 33,110 15.655 Electne System Revenue Bond Fund - current . 3 21,645 21.549 Accounts receivable - net . 16,610 15.441 Unbilled revenues 8 7,200 6.600 Fossil fuels - at average cost 35,550 36.784 -

Materials and suppkes - at average cost 17.026 13.826 Other current assets 2,408 3.502 Total current assets 133.596 113.406 DEFERRED DEBITS . 4 99,935 95.492 TOTAL S1.318.515 S1.303.494 l

See notes to financial statements.

14

I '.

LIABILITIES NOTES 1980 1979 _

(thousands)

LONG TERM DEBT: . , ,, , , 2 Electnc system revenue bonds - net of current portion:

Senal bonds. 2n% to 6% due annually from 1982 to 1999 . .

S 276,615 $ 286.905 Term bonds, 5%% to 6%% due at various dates from 1995 through 2017 594,110 594.110 Total long term bonds . .

870,725 881.015 Electric re,ecue notes due March 12.1982.

variable rate 30,000 30.000 Subordinated note due December 31,1990,6%% . 220 Total . . . 900,945 911.015 Less unamortized discounts . . 11,044 11.535 Long-term debt - net . _ 889.901 899.480 COMMITMENTS AND CONTINGENT LIABILITIES 6, 7 LIABILITIES PAYABLE FROM SEGREGATED FUND (See contra) . . 5,011 4.914 CURRENT LIABILITIES:

Current portion of long-term debt 10,290 9.915 Accourits payable . 38,155 40,516 Accrued payments in lieu of taxes 5,287 4.348 Accrued interest . . .. 20,434 20.545 Other current liabilities , ,

491 218 Total current liabilities . . 74,[5] 75.542 OTHER LIABILITIES , 27,718 11.816 ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS. 321,228 311,742 TOTAL $1,318,515 $1.303.494 l

l t5

~

\

Statements of Net Earnings and Accumulated Earnings Reinvested in the Business for the Three Years Ended December 31,1980 NOTES 1980 1979 1978 (thousands)

OPERATING REVENUES . 8 $227.014 S194.087 $147,116 OPERATING EXPENSES:

Operation:

Fuel . .. . 71,531 59,608 38,039 Other production . 18,833 14.572 14,356 Transmission . , , 1,251 1.164 1,113 Distnbution .. . 6,179 5.488 5.048 Customer accounts . 4,365 3.947 3.513 Customer service and information . 1,779 1,653 1,594 Administrative and general 12,579 11.460 9,640 Maintenance , 18,788 13.869 12.675 Total operatica and maintenence . 135.305 111,756 85.979 Deprec.ation . .... . . 34,465 29.484 22,308 Payments in lieu of taxes 6,191 5.252 4.836 Total operating expenses , 175,961 146.492 113,123 OPERATING INCOME . . . 51,053 47,595 3333 OTHER INCOME CREDITS (CHARGES):

Interest income 10,468 14.522 19,359 Allowance for funds used dunng construction . 875 7,648 15,677 Allowance for funds used for nuclear fuel 5,933 5.198 3,1 33 Amortization of cancelled project costs (4,598) (3.437)

Other - net . . . . 11 2.657 6 Total other income credits - net , , 12,689 26.588 38,175 INCOME BEFORE INTEREST EXPENSE 63,742 74,183 72,168 INTEREST EXPENSE 54,256 54.542 52.867 EARNINGS REFORE THE CUMULATIVE EFFECT OF A CHANGE IN ACCOUNTING PRINCIPLE 8 9,486 '9 641 19.301 CUMULATIVE EFFECT ON PRIOF YEARS (TO DECEMBER 31,1978)

OF THE CHANGE IN ACCOUNTING FOR UNBILLED REVENUES 8 6.100 NET EARNINGS . , 9,486 25,741 19.301 ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS, BEGINNING OF THE YEAR 311,742 286.001 266.700 ACCUMULATED EARNINGS REINVESTED IN THE BUSINESS, END O.': THE YEAR . $321,228 5311.742 5286.001 PRO FORMA AMOUNTS ASSUMING THE NEW METHOD OF ACC JUNTING FOR UNBILLED REVENUES iS APPLIED RETROACTIVELY - Net earrlings . $ 9.486 $ 19.641 $ 20.301 See notes to hnancial statements.

16 ,

l Statem.;nts of Changes in Financial Position  !

for the Three Years Ended December 31,1980 1980 1979 1978 (thousands)

SOURCE OF FUNDS:

Funds pruiced by operations:

Net earnings . . . . . ... .. ... S 9,486 $ 25,741 S 19,301 Charges (credits) to operations not affecting funds:

Depreciation . . . . . . . . . . . . 34,465 29,484 22.308 Amortization of nuclear fuel . 10,679 12,769 6,053 Allowances for funds used . .. , (6,808) (12.846) (18,810)

Amortization of cancelled project costs 4,598 3,437 Other - net .. .

3,207 5.713_ 2.198 Funds provided by operations . . 55,627 64.29E 31.050 Proe.eeds from sale of notes . . . 220 30,000 Proceeds from sale of revenue bonds - net . 225,980 Wi ndrawals frorn Construction Fund ... . .. 33.885 90.729 59.519 Witndrawals from Electric System Revenue Bond Fund 2tL8 59 28,999 Other - net .. .

562 3.773 Total source of funds . . . . 90.000 185.648 349.321 USE OF FUNDS:

Construction expenditures - net 42,741 53.062 89.154 Nuclear fuel expenditures - net . . 15,144 35,524 26,507 Charges to deferred debits - net 730 37.101 25.404 Reduction of long term debt . 10,290 9.915 249.550 Other - net . 20 1.842 Total use of funds . . 68.925 135.602 392.457 INCREASE (DECREASE) IN WORKING CAPITAL . S21,075 5 50,046 S(43,136)

CHANGES IN WORKING CAPITAL COMPONENTS:

Increase (decease) in current assets:

Cash and J.S. Government Secunties $17,453

$ 14,790 5(11,335)

Electnc System Revenue Bond Fund 96 (14,052) (5,356)

Accounts receivable. 1,169 3.913 (1,096)

Unbilled revenues 600 6,600 Foss;l fueis . . .. (1,234) 17,162 8,765 Materials and supplies 3,200 3,172 179 Other current assets (1,094) (3.091) (81)

Total , 20.190 28.494 (8.924)

Increase (decrease) in current liabilities:

Current portion of fong-term debt 375 365 350 Electric revenue notes . (30,000) 30.000 Accounts payable . (2,361) 8.605 8.156 Accrued oayments in lieu of taxes 939 417 408 Accrued interest (111) (233) (3.332)

Other current liabilit:es 273 (706) (1.370)

Total (885) (21.552) 34.212 INCREASE (DECREASE) IN WORKING CAPITAL . 521,075 5 50.046 5(43.136) l l

See notes :o financial statements.

1-

N:tes 13 Financial Statements *

1.

SUMMARY

M SIGNIFICANT amortization in accordance with a resolution ACCOUNTING POLICIES adopted by the Board of Directors on February Organization and Business - Omaha Public 16,1977. On April 12,1979, the Board of Power District, a political subdivision of the Directors adopted a resolution which authorized State of Nebraska. is a public utility engaged and directed the amortization of the solely in the generation, transmission, and finally-determined costs of Fort Cathoun Station distnbution of electric power and energy and - Unit No. 2 over a period of ten years, other related activities necessary thereto. The commencing April 1979.

Board of Directors 6s the authonty to establish Deferred Major Maintenance and rates. The Distnct is not Itable for Federal and Fuel Costs - Costs of refueling the nuclear state bcome or ad valorem taxes; however, payments in leu i of taxes are made to various reactor, changes in current estimates of future local governments. nuclear fuel disposal costs, costs of unusual maintenance undertaken during the refueling Basis of Accounting - The accounting process, and additional production costs ansing records of the District are maintained generally dunng penods when major generating units are in accordance with the Uniform System of out of service for major maintenance or refueling Accounts presenbed by the Federaf Energy are amortized over the appropnate Regulatory Commission. generation cycles.

Accounting for Revenues - Meters are read 2. LONG-TERM DEBT and bills are rendered on a cycle basis. The Distnct utilizes proceeds of debt issues Revenues eamed after meters are reed are primanly in fincncing its construction program.

estimated and accrued as unbilled revenues at the end of each accounting period (see also Matunties of electnc system revenue bonds Note 8). Prior to 1979, revenues were recorded dunng the years 1981 through 1985 are in the accounting period during which the as fouows:

meters were read. (thousandsl Propsrty - The costs of property additions, 1981. 510 290 replacements of units of property, and 1982. $11590 betterments are charged to electric plant. 1983 512 630 Maintenance and replacements of'thinor items 1984 513 1 55 are charged to operating expenses. Costs of 1985. 513.295 depreciable units of utility plant retired are The electric revenue notes mature March 12.

eliminated from utility plant accounts by 1982 and bear interest at a rate equal to the charges, less salvage and plus removal lesser of 8% or 67%% of the pnme commercial expenses. to the accumulated rate of the major lending bank.

depreciation account.

In May 1979, the Distnct authorized an An allowance for funds used. approximating the agreement with severaf banks for a revolving District's current cost of financing electric plant credit arrangement. The participating banks construction and the purchase of nuclear fuel, is agreed to loan to the Distnct from time to time capitalized as a component of the cost of the up to S30.000.000 at a rate equal to the lesser utility plant. In 1980, this allowance was of 64*b or 62b% (for participating Nebraska computed at 7%% for construction work in banks) or 64% (for participating out-of-state progress and nuciaar fuel in process. The rates banks) of the pnme commercial rate of tne vaned from 5.8% to 7% in 1979 and 1978. major lending bank. No borrowings were made Depreciation and Amortization - under this agreement through Depreciation is computed on the straight line February 24.1981, basis at rates based on the estimated useful The Distnct s bond indentures and note lives of the vanous classes of property agreements provide for certain restrictions, the Depreciation expense averaged approximately most significant of which are:

3.5% 3.7% and 3.6% of depreciab!e property Additional bonds may not be issued unless for the years 1980,1979 and 1978, respectively.

estimated net receipts (as defined) for each Amortization of nuclear fuel is based upon the future year will eoua! or exceed 14 times the j cost thereof, including current estimates of debt service on all bonds outstanding future nuclear fuel disposal costs. as adjusted including the additional bonds being issued or

, dunng penodic reviews, this cost is prorated by to be issued in the case of a power plant (as I fuel assemb!y in accordance with the thermal defined) being financed in increments.

energy that each assembly produces.

An amount at least equivalent to 12%*. of L Deferred Financing Costs - Debt discount gross operating revenue (as defined) must be and expense and amortizable charges relating spent annually for maintenance,

to refunded debt are amortized ratably over the replacements, or additions to the electnc lives o. the related issues to which they pertain. system, or if not so spent ts to be placed in a Deferred Cancelled Project Costs - metal fund to t'a used for such purposes or Fort Calhoun Station - Unit No. 2 - Costs for retirements of onginal bonds (as defined) arising from the termination of contracts relating in advance of matunty.

to For1 Calhoun Station - Unit No. 2 were in any three-year penod at least 7b% of deferred until commencement of a plan of general business income (as defined) must be 18

. -l l

spent for replacements, renewa!s. or additions .The assumed rate of retum used in computing to the electnc system. Any deficiency is to be the actuarial present value of plan benefits was spent within two years thereafter for such 8.7% for retired members and 8.2% for all purposes or if not so spent is to be used for other members.

bond retirements in advance of matunty. 6. COMMITMENTS et provides for

3. SPECIAL PURPOSE FUNDS The District'sofConstruction expenditures approximatelyBudh47,302,000 The assets of the special purpose funds of the dunng 1981 and $29.687,000 during later years, Distnct (Construction Fund. Electnc System of which amounts approximately $23,430.000 Revenue Bond Fund, Debt Service rund, and was under contract at December 31,1980.

Segregated Fund) consisted pnmanly of secunties of the U.S. Government and related Coal supply contracts extend to 1984 (with agencies, stated at amortized cost which options to 1989) for the North Omaha approximated market,'and the remainder {enerating was cash. ity Station station and Minimum

- Unit No.1. to 1998 for the Nebraska future payments amount to $13.309.000 for Nortn The Construction Fund is to be used for capital Omaha and $210.375,000 for Nebraska City.

improvements, additions and betterments to and The coal contract prices are subject to extensions of the District's electnc system, or for escalation based upon the suppliers' costs.

payment of pnncipal and interest on Efectnc System Revenue Bonds. Contracts with estimated future payments of

$133.623,000 are in effect for nuclear fuel. In The Electnc System Revenue Bond Fund and addition, a contract with the United States Debt Service Fund are held by the Trustees for Department of Energy with estimated future the retirement of term and senal bonds and th9 payments of $558.000.000 for the furnishing of payment of the relat9d interest- uranium enrichment services extends to the The Segregated Fund represents customer year 2002.

deposits and refundable advances. 7. CONTINGENT LIABILITIES Under the provisions of the Federal 4, DEFERRED DEBITS Pnce-Anderson Act as amended August 1.

The composition of deferred debits was 1977, the District could be assessed for claims as follows: in the c. cot of a nuclear incident in amounts not 1980 1979 to exceed $10,000,000 in any one calendar year.

tthousancsi Amortinuie charges relating to The District is engaged in routine litigation refunded debt. $38 439 S39 726 incidental to the conduct of its busir'ess and, in Deferred canceHed project costs - the opinign of its General Counsel, the

~

Fort Ca!houn Station - 1) nit No 2 37 879 42.386 aggregate amounts recoverable from or to the Deferred maior maintenance and District, taking into account estimated amounts refuehng costs - 2.454 254 provided in the financial statements and Deterred mine site reclamation costs 8.000 8 000 insurance coverage, are not matenal.

Deferred charges relating to future 8. ACCOUNTING CHANGE nuclear fuel disposal costs 9 683 The District's accounting policy prior to 1979 Other 3.480 5.126 was to record revenues in the penod during Tota! . S99 935 $95 492 wnich meters were read and bills were rendered, which was on a cycle basis. Under

5. PENSION PLAN this procedure, there was unrecorded revenue Substantiaily all District employees are to the extent of usage between the date of members of its contnbutory pension plan and meter readings and the end of a financial period, are not covered by Social Security. Generally, in 1979, the District changed its method of the plan provides for benefits at age 65 with accounting to record currently all estimated reduced benefits for earlier retirements. 'Jnbilled revenues. The change was prompted Provision is made annually for actuana!!y by the increasing monetary significance of such computed current costs, which were unbilled amounts and was made to better match

$3.617,000. $3.062.000 and $2,604.000 for revenues and expenses. The change increased 1980.1979 and 1978, respectively. The 1979 operating revenues and eamings before .

Distnct's policy is to fund pension costs accrued. the cumulative effect of a change in accounting A companson of accumulated plan benefits and pnnciple by 5500.000. The cumulative effect on plan net assets at January 1,1980 was pnor years of the change in accounting for unbilled revenues was 56,100.000.

as follows:

4 thousands)

9. RECLASSIFICATIONS Actuanal present va!ue of Certa,n amounts in the 1979 and 1978 Gnancial accumulated plan tenefits: statements have been reclassified to conform Vested $44.599 with the 1980 presentation.

Non-vested . 2 805 Total . . $47 404 Net assets avada:le for :enefits . 550.085 19

Supplementary Statement of Earnings from Continuing Operations Adjusted for Changing Prices for the Year Ended December 31,1980 (unaudited)

Conventional Coristant Dollar Current Cost Histoncal Average Average Cost __

1980 Dollars 1980 Dollars (thousands)

Operating Revenues $227.014 S227 (,14 S227.014 Total operation und maintenance expenses 135.305 136.376 138.114 Depreciation . 34.465 58.250 62.650 Payments in li*u of taxes . . 6.191 6.191 6.191 Total operating expenses . 175.961 200,817 206.955 Operating incorr e 51.053 26.197 20.059 Other encome credits . 12.689 12.689 12.689 income before interest expense 63.742 38.886 32.748 Interest expense . . 54.256 _,,54.256 54.256 Earnings (loss) from continuing operations . S 9.486 5(15.370)

$ (21.508) increase in current cost of utility plant held during the year $128,701 Reduction to not recoverable cost ..

$ (93.687) (22.314)

Effect of increase in gerieral pnce level .

(193.786)

Excess of increase in general price level over increase in current costs after reduction to net recoverable cost (87.399)

Gain from decline in purchasing power of net amounts owed 79.660 79.6o0 Net $ (14.027) S (7.739)

Supplementary Five-Year Comparison of Selected Financial Data Adjusted for the EfTects of Changing Prices (unaudited)

Year Ended December 31, 1976 1977 1978 1979 1980 (thousands)

HISTORICAL COST INFORMATION ADJUSTED FOR GENERAL INFLATION Operating revenues $174.605 5179.298 S185.890 $220.424 5227.014 (Loss) from continuing operations S (605) $ (15.370)

Not assets at year end at net recoverable cost $294.792' $306.932 CURRENT COST !NFORMATION

(Lc,ss) from continuing operations $ (3,950) $ (21.508)

Excess of increase in genera!

pnce level over increase in specific pnces after reduction l to net recoverable cost . $ 96,957 $ 87.399 Net assets at year end at nel recoverable cost $294.792 5306.932 GENERAL INFORMATION Gain from decline in purchasing power of net arr ounts owed $ 82.224 $ 79.660 Average ransumer price index 170.5 181.5 195.4 217.4 246.9 See notes to supplementary financial data.

20

N: tea to the Suppl mentary Financial Data Adjusted for the Effects of Changing Prices for the Year Ended December 31,1980 (unaudited)

The supplementary information is supplied in inventories - Fossil fuel inventones and the cost accordance with the requirements of FASB of fuel used in generation have not been restated Statement No. 33, Financial Reporting and from their histoncal cost in nominal dollars. The Changing Pnces, for the purpose of providing Distnct's rate structure limits the recovery of fuel certain information about the effects of changing through the operatior' of adjustment clauses or pnces. It should be viewed as an estimate of the adjustments in basic rate schedules to actual costs.

approximate effect of inflation, rather than as a For this reason fuel inventones are effectively precise measure. monetary assets.

Utility Plant, Depreciation and Amortization - Effect of the District's Rate Structure - Under Constant dollar amounts represent histoncal costs the rate making structure adopted by the Distnct, stated in terms of dollars of equal purchasing only the historical cost of utility plant is recoverable power, as measured by the Consumer Pnce index in revenues as depreciation or amortization.

for All Urban Consumers (CPI U). Current cost Therefore, the excess of the cost of plant stated in amounts refiect the changes in specific prices of terms of constant doijars or current costs over the the utility plant from the date the plant was acquired historical cost of plant is not presently recoverable to tne present, and differ from constant dollar in rates as depreciation or amortization, and is amounts to the extent that specific pnces have reflected as a reduction to net recoverable cost.

increased more or less rapidly than prices To properly ref!ect the economics of the District's in general. rate structure in the Statement of Earnings from The current cost of the utility plant represents the Continuing Operations, the reduction of the utility estimated cost of replacing existing plant assets. plant should be offset by the gain from the decline The current cost of the electnc plant was in purchasing power of net amounts owed. Dunng a determined by indexing the surviving plant by the period of inflation, holders of monetary assets Handy-Whitman Index of Public Utility Cor struction suffer a loss of general purchasing power while Costs. The electric plant was aged on the basis of holders of monetary liabilities experience a gain.

clearings from construction work in process to The gain from the decline in purchasing power of electric plant in service. The current cost of nuclear net amounts owed is primarily attributable to the fuel in the reactor was based upon the actual cost substantial amount of debt which has been used to of the most recent assemblies to be placed in the finance the utility plant. Since the depreciation and reactor. The cost of nuclear fuelin process was nct amortization on this plant is limited to the recovery adjusted from histoncal amounts. The current of historical costs, the District does not have the year's provision for depreciation and nuclear fuel cpportunity to realize a holding gain on debt and is amortization was determined by applying the limited to recovery only of the embedded cost of District's effective depreciation and amortization debt capital.

rates to the computed constant dollar and current cost amounts of the utility p: ant.

Net Receipts and Debt Service Coverage for the Five Years Ended December 31,1980 (unaudited) 1980 1979 1978 1977 1976 (thousands)

Operating revenues $227,014 S194.087 S147,116 $131.805 5120.576 Operation and maintenance expenses. 135,305 111,756 85.979 64.230 66.482 Payments in lieu of taxes 6,191 5.252 4.836 4.428 4.224 Net operating revenues 85,518 77,079 56.301 63.147 49.870 Investment income (1) 4.490 4.386 4.333 4.062 3.C66 Net receipts S 90,008 5 81.465 5 60.634 5 67.209 5 52.936 Total debt service (2) $ 58,969 5 44.772 5 30.613 5 32.391 5 31.710 Debt service coverage 1.52 1 81 1.98 2.07 1.67 (1) Income denved from me nvestment cf moneys .n the Ce3 Serv ce Fund and *e Aeserve Account of me E ectr:c System Revenue Bord Fund under me Distnct's bcnd indentures (Heso uten No 19 anc Resciuton No.1788)

(2) Total oebt Sennce for botn Aescaut.cn No.19 and Aeso uton No.1788 Sonds is accrued on a ca'eadar-year basis saiar to me computation of Net Aeceipts. Icterest 'unded frcm bond proceeds .s not inc:vded in Tctai Cect Servee.

21

Electric System Revenue Bonds Outstanding (In Thousands) as of December 31,1980 1952 tSSUE 1954 ISSUE 1956 ISSUE - 1957 ISSUE %8(SSUE 1961 ISSUE 1966 ISSUE 1968 ISSUE '

Maturey Date W ent W- W W W W W Fetruaq 1 Raie Amt . Rate Amt Rate Amt. Pate Amt Rare Amt Rate Amt Rate Amt Rate Amt a

1931 2% 2.100 24 1.000 3 1.000- 3% 210 -34 220 3% 610 4 535 4% 910 1982 2% 2 100 2% 1 000 3 1 000 3% 220 3% 300 3% 625 4% 560 4% 980 1983 2% 1.t 00 3 1 000 3% 600 3% 680 4% 890 44 1.850 1984 24 1.100 3 1.000 3% 600 34 800 4% 930 4% 1.900 1985 3 1,300 3% 600 34 840 4% 1.000 4% 2 200 1986 3 1.400 3% 500 34 1.000 44 1.040 4 t. 2.200 1987 3% 500 34 1.000 4% 1.15C 4% 2200 1968 3% 500 34 1.000 44 1250 4% 2 200 1989 3% 1,000 44 1.400 4k 2200 1990 34 1.000 - 4%- 1.425 4h 2.300 1991 , 3% 1.000 44 1.500 4% 2.300 1992 4w 1.500 4h 2.300 1993 44 1.500 db 2.300 1994 4% 1.500 4% 2.400 1995 , 44 1.500 4% 2.400 1996 4 1.500 4% 2 400 1997 4% 2.400 1998 4 2.500 1999 2000 2001 ,,

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Tota! Oui.

sta%ns 4.23 4200 6 700 430 3 820 9.555 19.180 J7.940 Bonds Redeemed to 12'31'80 12.800 7.800 8.300 7.570 3.180 7 445 5.820 7.063 Orgest issue 17 000 12.000 15 000 8 000 7.000 17.000 25.000 45.000

' Term Bonos "The 1975 Seres A and 8 Bond issues were refunded by the 197' Seres A tatue

• "The 1976 Seres 4 and B Bond issues we+e refunded by the 1977 Seres C tssue 9

9 l

22 l

1

.a.

1977 ISSUE t 977 ISSUE 1977 ISSUE

' 1988 ISSUE 1972 !$$UE 1973 ISSUE SERIES A" ' SEAlES e SEAIES C"*

Total Pnnceal Total Int int. Int w. W. In: Matun- Acenan0 Doet

. Rose Amt. Aase Amt Rate Amt. Aate Amt. Aate Amt Aete Amt. bos Interest Semco 8 330 4 30 2.835 5% $40 to 290 48 682 58 972 8 -350 4 40 2 990 5 St5 4 20 900 11 590 48 314 59 904 5 80 800 4W 3.155 4h . 590 4 35 f.965 12.630 47 891 60.521 4 70 850 4 60 ' 3 330 4 85 620 4% 2 025 13.155 47 374- 60.529

^ eh - 900 4 70 3 510 4 95 , 550 4 60 2.295 t 3.295 46.834 60.129 4% 950 4 80 3 705 5 680 4 70 2.365 13.840 46 264 60.104 Ga0 900 4 90 3 9to 5.10 71' .300 4 80 2.5d0 14.300 45 664 59964 0 90 990 5 4.t25 5 15 74w a 1.500 4 85 2.650 14 960 45 010 59 970 6 90 1.000 5 4.350 5 20 780 S 2.000 4 95 2.925 15 655 44 317 59972 5 1.000 5 10 4 590 5% 820 5 15 2.250 5 3 015 16.400 43.578 59.978 5' 1.000 5 10 4 845 5 30 860 $ 30 2 600 5 05 3.100 17.205 42.791 59 996

-S 1.000 5 20 5.110 5 30 905 5.40 3 850 5 to 3 380 18 045 41.958 60.003 5 1.000 5 20 5.390 5.40 950 5% 4 150 5.20 3 620 18 910 41.055 59 965 5.1C -1.100 5.20 5.665 5 40 1.000 5 60 4 500 5% 3.720 19 905 40 C97 60 002 5 to 1.100 5%* 6.000 Sh* 1,050 5 70 4 900 5 30 3 970 20 920 39 077 59 997 5 to 1.100 5%* 6.330 Sh* t.110 54 5.350 5 40 4.170 21 960 37982 59 942 5.10 1.100 5%* 6680 Sh* 1 t 70 5 80 7.300 5 45 4 485 23.135 36 824 59.959 4h 1.100 5%* 7.045 Sh* 1235 5 85 7 900 5% 4 590 24 370 35.568 59 938 CA 1,100 5%* 7.430 Sh* 1,300 5 90 109T, 5* 4 960 25 690 34 252 59 942 5%* 7.840 5%* 1.370 6* 12.600 Sh* 5 335 27.145 32 810 59 955 5%* 8 275 5%* 1.450 6* 13.450 5%* 5470 28 645 31.247 59 892 5%* 8.725 Sh* 1.525 6* 14 350 54' 5 7t0 30 310 29897 59707 5 %* 9 205 54* 16'O 6* 15 250 5%* 5 955 32 020 27 851 59 871 5%* 9 715 8* 17.300 5%* 6.d20 33835 26 006 59 841 5%* 10.250 6' 18 550 5%* 6.970 35.770 24 054 59.824 5%* '0.810 6* 19 900 54* 7.140 37.850 21 989 59 839 6* 30.100 54' 9.885 39365 19 804 59.789 6%* 12.90u 5%* 10.780 23.680 17.429 41.109  %

6%* 13.670 5 90* 11.200 24 8M 16.019 40 869 6%* 14.490 5 90* 11.730 26.220 14 521 40.741 64* 15.360 5 90* 12 345 27.705 12.941 40 646 64* 16.285 5 90* 13.005 29 290 11.272 40.562 6%* 17.260 5 90* 13.715 30 975 9.508 40.483 6%* 16 295 5 90* 14.435 32.730 7.641 40.371 6%* 19.395 5 90* 15 215 34 6to 5 669 40 279 6' t' 20 556 5 90* 16.775 37.330 3.583 43.913 6%* 21.790 25.790 1.335 23.125 17 720 155.835 22 235 200 000 170 000 229 200 581,015 1.126 808 2 007.623 1

3 230 14 165 2.765 79.155 20 000 170.000 25.000 200.000 170.000 229.200 960.200 W

4' a

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23

1980-1979 Comparisons l

OPERATING REVENUES onousanau P,,ee P-cem l vea. et Ye s' e C>asseat.on '980 Tots 1979 inc<eas, Macas o1 Dohars SC 75 100 125 15c 175 2M 225 250 Aescent.a. . 1 70 700 34 7 198C 1 65 300 20 4 r,,nere s,we _ sm,,, 5? $$$ pg s a g 5g . '6 C gg., ,

Geneca Service - Lar9e 34 291 1' 29 249 17 2 '

( Governmenf and MAca. 3 983 .7 3 462 15 C 3g7g  ;

Cee' Ee 1'ac Uwies 49 939 22 C 44 006 13 5 Acuwee Unc,uec pevenues 60C 3 8E 20 0 1 14 Tota: Em;tnc Revevs $225C28 99 1 $192188 17 1

,d Mxehanoows Revenues _1 986 9 1 899 _46 _

~

To'a' Oce anng Aevenues $227.014 1000 $194 06' 17 0 KILOWATT-HOUR SALES Ofosta'Xfs) Pe*:ent Percent Ye a' o' ve a' of Ma'0S O' C;asskanon 1980 Tota' 1979 increase Kuomat'Mvs 3000 3500 4000 450C 5000 5500 6000 650C 7000 Aesv>ent.a 1 952 85' 30 4 1835 2L 64 1980 i!'t:::% n C overnment and Mu icc.ai

' "' S 75 325 n'12 $"O 74 653 9

1m -

l 1976 f ene Cectric UtMes 1 275 171 19 9 1 452 337 112 2) fosa Eneegy Saes 6 419 D45 1000 o 467 821 q 81 1974

() 1972 Denotes Decrease

, OPERATION AND i MAINTENANCE EXPENSES ,,

i (thousanas) Percent Percent Year o' Year cf ClassAcation 1980 hia' 1979 increase Mili.ons o' Dolia's 20 35 50 65 80 95 110 125 140 Gene'abag Escense 5 98 412 72 7 5 77 599 26 8 1980 Pur chased and Interenanged

( Po.ee 2.782 21 4 207 433 9) '970 2 T'ansmisson and Decribution . 15 273 1t 3 12.786 19 5 Customer Accounts 4365 32 3 942 10 7 '94 Custom, Sewe and

,974 in'armation . 1 779 13 1653 76 Aom.n.strative ad Gene's 12 6e9 94 11.569 97 ,972 Tots' Operam and i Ma>n'enance t spenses $135 30! 100 0 $ t 11756 21 1 i )

Denotes -

Dacrease OVER AGE NUMBER OF CUSTCMERS' Pe<c ent Percent Yea' of Ye a- of Thousancs .

Classkanon 1980 Tcta 1979 increase of Customers 150 160 170 180 '90 200 210 220 230

'85 358  !

j ges oembal ie? BC2 88 7 13 1980 seene<a' Seen e - Smar 23 541 11 1 23 484 2 l I' Geva, Sewe - Large 89 -

88 11 1976 l

Otne< 41'~ 2 401 35 19?6 Ava rage Custome's 211.847 100 0 209 331 12 '

'97'

' A e- age totat f.eeve Months E noec Decemte ig72 l

1 I i I j

Electric Statistics 1940 1979 1978 13'7 1976 1975 1974 1973 1972 1971 fof of UtMity Piant. 6nClud;ng

• Nucteer fuet uat yew ends In % sands of d><a s; 1 223.659 t 167 444 1072. t 89 946 864 825 597 652 668 567 734 546 230 504 106 443 212 Sonded indentedneoa var year eno) f a inousands of doders; 641.015 890 930 900 480 890 480 699 344 497 680 334 758 339 668 320 2n6 155 564 Opeesteg Revenues inn mousands of corars)

Res4enhal 78,70s 65 388 60 819 54 392 51 684 45 629 34 183 29 254 26 112 24 722 Generai $ ewe - Smad 57.515 49 541 44 277 4 t .197 38 592 33 830 25 496 23 364 20 630 18 834 General Sewe - Large 34.291 29 249 24 916 22 217 21 162 17 465 13 741 12 067 10 249 9 66i Govemment and At ecoat 3.983 3 462 2 341 3 282 3 260 2 317 2 291 2 006 1664 1 514 Other [ ectric utmt.es 49 931 44 000 12 926 9 081 4 285 2 890 5 301 4 024 3 697 3 264 Accrued ge w e3 pe,enues 600 500 M'scoiareous 1,97 6 18v9 t 637 f 6]tt 1 593 2 929 2 099 1 654 1 554 ?262 Torat 227.014 194 087 147116 t 31905 120 576 s06 w emt 72 363 63366 59 199 Operation & Ma.ntenance Esponses Charged to Operations ic rNusams of d#srv 13t es 111 756 e5 979 64 230 66 482 55 J25 41 320 43 056 39 298 34 4'O Payments in Lou of Tases fri rhousanc! of coela's) 4.191 5 252 4 836 4 429 4224 3 '63 2 904 2 613 2 345 2 209 Nee Operstmg Revenues before Depreciatoon te thousands W Jenarsi 8% Sit 77 079 56 301 63 14? 49670 46 572 38 877 26 634 22 323 22520 Net Earnmgs Remwested m Suomess

,e waNs et Marsi 9.446 19 641 19 301 25 246 18274 t 8 386 '3 365 13 228 t1409 13 6C2 Gowa't-Hour Sates f.n tnowsancs) f ascent a; .

t 952 G51 1 835 250 t 881529 1 717117 1 665 518 1 674 761 150?'97 1 436 826 1 363 492 1 275 402 Gene'ai Semice - Sms 1.684 631 ! 666 849 1 643 361 ?580095 1 500 223 1 437 145 t 362 536 1 473 943 1 400 564 12e5 73t Gervan Sewe - Large 1.431.067 1 438 732 1 382 366 f 3C2 521 1 270 736 1 163 250 t 140.723 1.030 553 942 236 92' 54' Gowemrne9 snd Vurtcai 75,325 74 653 77 675 127 367 144 932 134 176 133 703 126 973 121 233 119 182 Other Dec're t,hnes 1.275.171 1.452.337 642 399 431 S84 229 073 219 924 554 713 534 645 491 894 498840 Ibral 6.419.045 6 467 821 5 633 300 5 219 284 4 8to 482 4 $29 257 4 699 024 4 652 940 4 319 413 4 106 796 Number of Customers

! ave' age per year)

Aesdent.at 187,402 185 354 182 t 56 178 259 174 331 171 239 167 943 163 320 157 662 151 834 Generai Sewe - Sead 23.541 23 484 22 319 22 250 21824 21 387 21 251 20 445 19 676 ?8 920 Generai Sewe - Lage 89 88 35 80 84 85 60 252 322 341 Governmeet and Wwcai 403 386 363 763 351 031 32t 282 253 240 Other E ectnc Utst.es 12 15 ?6 12 10 9 tt 9 9 3 a 70tar 211.447 209 331 205 $19 200 964 ?96 600 t 93 051 183 516 t84 306 177 922 171 344 Residential Stat 6stics e avere.;ei

• M Cwstomer 10 396 9 301 ?O 329 9 633 9 $$4 9 78C 8 980 9104 8 648 8 400 Dodar Aevenue Costomer - 419 to 352 76 333 33 305 t3 296 47 266de 203 66 i '9 ' 2 tes 62 152 82 Certs t he 4.03 3 56 3 23 3.17 3 to 2 72 2 27 1 97 1 92

• 94 Generateg Capa0My at year endt ret me.ctrs) 1.979 800 1360 Oi,0 1 382 000 1 373 '00 1 371 700 1 411 300 ' 411 000 t 432 000 933 000 525 000 System Pean Loads on newst*v 1.348.400 ? 255 200 t 257 300 t 222 300 t ? Do 100 1 134 000 ' 117 300 ' 058 300 989 900 313 000 Net System ReQuatements monartw .n hsancs)

Gene ated 8 541 819 6 823 S34 55383:* $ 631403 5 092 064 5 023 719 5 7'3 4M 4 446 364 3 561.731 3 269 390 Purceases aN Ne' ir to caaNed (1.084 095) 0 413 746. ;963 599' '586 " 5, l'65 5421 .3'O 0933 . t 332 610) -. t 9 0941 578 204 585 237 Nor 5.497,724 5 410 088 5 375 245 5 044 f2' 4 325 522 4 ??3626 4 440 875 4 42' 570 4 139 935 3 854 627 f ) Canc*es Neganve 25

Division 31anagers rl i h)mond A florg blph K. Osattacid EUliam D. Dermyer Delbert L Dirrim L krdell Goldberg

( *me re vs f uels f arctrac ojnsassons Gosesnmental Affases iunancsal Audstsng HER7E ul!!iam C. Jones intu< toron Operatnone % stem riannung Gerald J. Arause lh ett C. Icarth Corprovate .k ce,un tsng John u: Marcil imame f red M. Peter *en Publu Re!stsons l

l EEEER Allen u. Riggers I mplan,s Retarsons Rhltard T. spetman fanaprment ss stem s Omaha Public Power District Service Area: 5,000 Square 3 tiles Wayne sesele

.staten,al .itanagement f rank A. Thurtell n m nt and Dayton D. ulttke E ngmrersng The District setses %%0 000 peonic in all or part of 13 '

(ounties in N>utheastern Nebraska Liectric sers ne is prouded to the following 48 incorporaird (ommunities l JI retail

Alvo (n on Leshara Rakton l Arlinarton rook lousmile Rogers Ashla uw.1 iagle Marde) Rulo l

Avin a E lkhorn Mead $alem l hellene Flmmond M e rnptu' south tiend l Bennington fort (.alhoun Morse Bluff spnogfield

Iki3 s Tos n Gretna Murde n k salle>

Hurt Herman  % kem en v astungton Caner i2ke (loma ) H<uiper North flend w at erla u, Cet'ar hiuffs Ithaca Omaha ureping unter [

l (cdar Creek kennard Papilluen u anslam l

l Ceresco Lasista Peru Ean OPPD a?so serses Blaar. Fik Creek G reenm ood Sy racuse and Tecumseh at whoicule '

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Mid. Continent Area Power Pool (MAPP)

Omaha Public Power

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member of the Nhd-Continent area Power l~ .. Pool ( M APP). an gy ->

organization of 40

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, independent power g".

suppliers that hase joined together to work for a

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rehable aad adequate supply of ciectricity in the lpper Midwest While each system is responsible for its ow n needs. all have pledged to o> operate in

11G13D planning, construction. and l - litg'h-mitage lines operation of new

• Interconnection with adiacent generating and transmission utilitici high4citage lir.es tactlities in the region.

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