LIC-97-0046, 1996 Annual Financial Rept Omaha Public Power District. W/

1996 Annual Financial Rept Omaha Public Power District. W/

ML20137F545
Person / Time
Site:	Fort Calhoun
Issue date:	12/31/1996
From:	Gambhir S, Jr Noble Green, Petersen F OMAHA PUBLIC POWER DISTRICT
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
LIC-97-0046, LIC-97-46, NUDOCS 9704010127
Download: ML20137F545 (32)

Text

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. a, Omaha PublicPowerDistrict 444 South 16th Street Mall Omaha NE68102-2247 March 20, 1997 LIC-97-0046 l

U. S. Nuclear Regulatory Commission I Attn: Document Control Desk Mail Station P1-137 Washington, DC 20555

Reference:

Docket No. 50-285 i

SUBJECT:

1996 Annual Financial Report I In accordance with 10 CFR 50.71(b). enclosed please find one copy of the Omaha ]

Public Power District's 1996 Annual Financial Report.

1 If you should have any questions, please contact me.  !

Sincerely.

S. K. Gambhir l Division Manager - , 17 Engineering & Operations Support O'. / /

SKG/mle 9704010127 961231 Enclosure PDR ACOCK 05000285 I PDR c: Winston & Strawn (w/o Enclosure)

E. W. Merschoff. NRC Regional Administrator. Region IV (w/o Enclosure)

L. R. Wharton, NRC Project Manager (w/o Enclosure)

W. C. Walker. NRC Senior Resident Inspector (w/o Enclosure) sp59555EEN 45.5120 Employment with Equal Opportunity l

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The Omaha Public Power District proudly celebrated 50 years of excellent senice to southeast Nebraska on Dec. 2,1996.

Since OPPD's first full year of operation in 1947, total energy sales have grown by - -

more than 11 times, from 674 million kilowatt-hours to 7.8 billion kilowatt-hours. The average annual use of electricity in the home has increased nearly seven times, from 1,598 kilowatt-hours to 10,849 kilowatt-hours. Usage by commercial and industrial customers has increased dramatically, as well.

Business and community leaders of the 1940s, who believed public power would help the area thrive, formed the Omaha Electric Committee to commit OPPD's predecessor- the Nebraska Power Company-to public ownership.The not-for-profit committee purchased much of the common stock of the Nebraska Power Companyin December 1944.

The Omaha Public Power District began operations in 1946 after purchasing the properties and facilities from the Omaha Electric Committee. In January 1965, OPPD's service area doubled in size to 5,000 square miles when OPPD merged with Eastern Nebraska Public Power District.

Over the years, OPPD has built both fossiland nuclear generating units to satisfy the growing needs ofits customers.It has embraced technology in allareas of operation.It has shown its resilience G.=- - zu and responsiveness fol-C h! lowing tornados, floods and ice storms. Quite sim-ply, OPPD has withstood up $ "' ,s p . ,

the test of time.

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,3 provide reliable service at an afford-m

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]g]1' continues to meet that expectation.

Ig in the early days,it often took large numbers of people to accamplish g

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h@NNk Highlights . . . . . ....................... 3 Chainnan's Report . . . . . . . . . . . . . . . . . . . . . . . . 4 Board of Directors . . . . . . . . . . . . . . . . . . . . . . . . S President's Report . . . . . . . . . . . . . . . . . . . . . . . . 6 1

Vice Presidents . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

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Operations Review . . . . . . . . . . . . . . . . . . . . . . 8 Financing. . . . . .............. . ....... 12 Independent Auditors' Report. . . .. .13 Balance Sheets. . . . . . . . . . . . . . . . . . . . . . . . . . 14 Statements of Net Earnings and Accumulated Earnings Reinvested in the Business . . . . . . . . 16 Statements of Cash Flows. . . . . . . . . . . . . . . . 17 .

1 Notes to Financial Statements . . . . . . . . . . . . . 18 Net Receipts and Debt Service Coverage. . . . . 23 ElectricSystem Revenue Bonds Outstanding. 24 1996-1995 Comparisons . . . . . . . . . . . . . 26  !

Electric Statistics . . . . . . . . . . . . . . . . . . . . . . . 27 OPPD Corporate 0fficers . . . . . . . . . . . . . . 28 OPPD Service Area Map . . . . . . . . . . . . . . . . . . . 29 a

Ennitive Offices Paying Agents Minibond Administration Energy Plaza First ChicagoTrust Company Omaha Public Power District 444 South 16th Street Mall of New York Treasury Analysis Department Omaha, Nebraska 68102-2247 New York, New York General C,ounsel The First NationalBank of Chicag Tnistee Fraser, Stryker, Vaughn, Meusey, Chicago,Illmois The First NationalBank of Chicago Olson, Boyer & Bloch, P.C.

Norwest Bank Nebraska, N.A. Omaha, Nebraska Chicago, Illinois Omaha, Nebraska

Wig #4ba Operating Revenues Operating revenues for 1996 were $420,090,000, an increase of $7,736,000, or 1.9%, from 1995 operating revenues of $412,354,000.

4 Operation and Maintenance Expenses Operation and maintenance expenses for 1996 were

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$250,316,000, an increase of $5,738,000, or 2.3%, from 1995 operation and maintenance expenses of

$244,578,000.

Net Operating Revenues Net operating revenues, before depreciation and decommissioning, were $ 154,275,000, an increase of

$1,762,000, or 1.2%, from 1995 net operating revenues of $152,513,000.

Net Earnings Reinvested in the Business Net earnings reinvested in the business totalled

$40,205,000, a decrease of $7,826,000, or 16.3%,

from 1995 net earnings reinvested in the business of

$48,031,000.

General Business Sales General business sales to District customers were 7,756,491,000 kilowatt-hours in 1996, an increase of

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299,746,000, or 4.0%, from 1995 sales of 7,456,745,000 * - *

• kilowatt-hours.

Meter readers used to carrylog Average Numberof Customers _

u books to manually The District served an average total of 272,239 customers record meter in 1996, an increase of 4,575, or 1.7%, from the 1995 aver- , l. . . '

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, pert $nent age total of 267,664 customers. (Md information.

Today's meter Average Residential Use ~-'?

readers carry Average annual use per residential customer in 1996 was

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• hand-held 10,849 kilowatt-hours, a decrease of 148, or 1.3%, from the '

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g,7 rec r ing 1995 average of 10,997 kilowatt-hours. purposes.

Average Residential Cost The District's residential customers paid an average of 6.65c per kilowatt-hour during 1996, approximately 20%

less than the national average, m 1996 Net Construction Expenditures Expansion and improvement of system facilities during 1996 required net construction expenditures of $96,855,000.

Chairmanis,Repod

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y At the Omaha Public Power District, we base our success on how well we take i care of our customers. So, as we have done for the past 50 years, we focused much l of our efforts in 1996 on continuing to provide them with the reliability and l j '

economy to which they've become accustomed.

For the fourth consecutive year, our rates remained stable. In fact, residential ,

customers paid nearly two percent less per kilowatt-hour in 1996 than they did l in 199'. They continued to pay approximately 20 percent less than the national averag 4 We avommitted to being the low-cost provider in this region, and we took several steps last year to ensure that we achieve that goal. For example, we imple-

. mented financial strategies that include aggressive debt-reduction and asset-g ,

management actions designed to help reduce future costs. Included in those efforts

, F Green was the defeasance of the utility's 1992 Series B Bonds. This action reduced out- )

om m,f the zwant, standing debt by $157 million and will result in substantial savings in future debt Attomy at Law service costs. Another step taken involved the accelerated depreciation of the Fort Calhoun Nuclear Power Station. These strategies will help position us for the future and help ensure that our financial position remains strong.

OPPD's financial position was very strong this past year. For instance,1996 net earnings reinvested in the business totaled $40.2 million; operating revenues were $420 million, up nearly two percent from 1995; retail energy sales were 7.8 million megawatt-hours, up four percent from the previous year; and operation and maintenance expenses were $250.3 niillion. 0verall, we finished the year nearly $24 million under budget.

Keeping our finances stable is important, but providing quality senice to our customers is equally significant. 1 We're actively participating in the Nebraska Legislature's study of the electric utility industry. This study will help determine the effect of utility deregulation at the national level to detennine what effect it will have on the state's public power system.

Although we'll be investing $95 million in capital projects in 1997, our total expenditures for the year of

$407 million will be almost four percent less than 1996 levels. Our 1997 expenditures will include additions and improvements to OPPD's transmission and distribution systems. A substantial amount of the capital budget will go toward increasing the generating capacity of Nebraska City Station to maintain that plant's position as one of the lowest-cost power producers in the nation.

As we address the future, I look forward to the support and knowledge of veteran Directors MichaelJ.

Cavanaugh, N. P. Dodge Jr., Keith B. Edquist and Fred J. Ulrich. I also welcome the input of new Directors, elected in 1996, Geoffrey C. Itall, Anne L McGuire and Del D. Weber. I'm sure their senice will be invalu-able, as was the senice of outgoing Board members Dennis D.Jorgensen, Eugene T. Mahoney and FrankJ.

Wear.

OPPD has done a great job over the last half-century of providing reliable and affordable electric service.

We expect to continue that tradition and remain Nebraska's number one Energy Partner.

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I John K. Green 1 Chaimian of the Board

SoadofiDixectors, l

FrederickJ. Ulrich N. P. DodgeJr. MichaelJ.Cavanaugh

\' ice Chairman of thethirJ Treasunr Secretan' Fanner, CattleTeeder l'raident, N. I'. IMige l'oliceSergeant Cornpany Keith B. Edquist Geoffrey C. Hall 1%irdAfanter luard Afanber l>niJtitt, Ilu>ker flanLar Attontes at1au Distributing, Inc.

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%; it used to be that when we talked about "taking care of business" in the electric utility industry, we were referring primarily to generating enough power for our

~ ("customers and delivering it reliably and affordably These have been the critical

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rapidlyin both size and complexity.

.: In this new environment, the successful utilities will be those that maintain the f

k quality and economy of traditional services while providing customers with a host of new products and services. The Omaha Public Power District intends to remain one of the most successful utilities in the industry, and to do that we took signifi-cant steps in 1996 in both traditional and new areas of business.

For example, the process and economy of generating electricity were enhanced by a number of significant actions. Personnel at Fort Calhoun Nuclear Station com-Ir I i wire agar pleted the shortest refueling and maintenance outage in plant history, wrapping up work in just 53 days. At our coal-fired Nebraska City Station, negotiations began for the purchase of a rail line that will ultimately allow competitive delivery of coal to the plant. That competitive access is expected to save millions of dollars annually in future coal transportation costs. OPPD also made arrangements to pur-chase additional generating capacity between the years 2001 and 2008. This will save a substantial amount of money by allowing us to delay construction of additional generating units.

In the area of new business, we conducted a detailed market review to help identify new business opportu-nities and develop the strategies needed to succeed in those new areas. As a result of that review, we're in the process of building an aggressive and successful marketing organization. Specifically, actions taken in 1996 include our submission of an open access transmission tariff to the Federal Energy Regulatory Commission.

OPPD was the second public power utility in the country to make such a voluntary submission. By doing so, we are positioning the utility to compete in wholesale power markets whenever and wherever it benefits our customers.

We also eliminated the Fuel and Production Cost Adjustment (Fl%) from our rate structure and from the monthly bills of our customers. This adjustment allowed OPPD to account for the variable costs associated with producing power by collecting additional revenues or crediting customer bills. Eliminating the FPA pro-vides price certainty for our customers. Since we had projected total FPA credits of $14 million in 1997, we made a permanent reduction to base rates in that amount.

The ultimate objective of these and many other efforts is not simply to compete, but rather to ensure that all customers continue to receive the same quality service that OPPD has delivered for more than 50 years.

We have set a tradition of excellence for half a century, and it's a tradition we intend to continue.

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Fred M. Petersen President

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E Op45) Mons,ReViRW As Omaha Public Power District celebrated its 50th anniversary, it continued to prepare for a leadership role in a deregulated, competitive electric industry.

From power lines and power plants to rate structures, customer programs and computer systems, OPPD personnel implemented a number of changes aimed at improving the way the utility operates and at positioning OPPD as the provider of choice in the area.

For example, OPPD initiated long-term contracts with certain large customers, a strategy that will strengthen our position as competition increases. OPPD also joined the Western Systems Power Pool (WSPP), which will enable the utility to buy and sell power at market-based piices.

Account executives performed energy reviews for all .g large customers, and the utility analyzed comrnercial and industrial customer accounts to make sure customers were = i on the most economical rates. A Power Quality hianual was developed to define procedures for responding to 44 customer inquiries, for resolving customer problems ' ,. t related to power quality, and for tracking the results of all activities and actions taken.

The role of the line dispatcher is chang.mg ff{ g dramatically due to {e ~

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, issued in 1996. In the l Old days, shown in the bottom photo,line dis-patchers managed the N]i day-to-day delivery of power to OPPD cus-tomers over thousands of miles of power lines. Today's line dispatchers, pictured in the top photo, also must be familiar with

everything involved in operating the transmis- .

sion system, which 'b ,

includes providing N transmission services to other utilities in a nondiscriminatory, open access manner.

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Committed and v Competitive The customer focus was apparent in the reorganization of the service centers, which j enabled crews to respond more z .

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and other customer needs. .- s The changes ranged from consolidatingwork groups to creating special crews forlarge projects.The reorganization helped crews complete a great dealof work during the year.

More than 80 miles of over-head rural distribution line

+ere rebuilt, nearly 50 miles of t ible in new underground resi-dentialdevelopments (URDs) were installed and 10 miles of p A family gets a first-old URD cable were replaced.

hand look at the new Infrared . inspection of equipment, North Omaha Power such as transformers and switchgear, Station in the 1950s.

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helped identify potentialproblems

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before they occurred. Helicopter inspec- . optimization programs, I tions of the transmission system identi-

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,p,rta fled other critical maintenance require- m. of OPPD's generation

{ ments that could have caused outages if

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as this, OPPD's electric system availabili-M? outage.

ty remained high, despite being severely tested throughout the year by a large number of lightning and wind storms.

OPPD generating units performed well in 1996. An Institute of Nuclear Power Operations (INPO) evaluation concluded that overall performance at Fort Calhoun Station was exemplary, with many l strengths identiP d. North Omaha Station generated 2.9 million kilowatt-hours of electric energy, the most since 1973, anc' e third Sarpy County combustion turbine, which became available for commercial operation in 1996, contributed approximately 100 megawatts to OPPD's generating capacity. Contracts also were awarded in 1996 for a station upgrade at Nebraska City Station that will increase the plant's capacity by 34 megawatts, and for a control upgrade project at that plant to replace outdated equipment. The new controls will improve plant availability, heat rate md start-up.

hfKh% h% Q, W' Continued Tooling and Technology The security of utility records took high priority in 1996 as OPPD began preparing its computer systems for the year 2000 date compliance efforts. This project, which will affect most of the utility's computer hardware and software applications, trgan with an inventory of OPPD software systems and their inter-relationships. Modifications of the date fields in smaller systems began, while complete modifications to the larger systems are being scheduled.

OPPD also began modifications to its customer information systems to accommodate the expanding needs of commercial a ' industrial customers. Summary and products /senices billing should be completed in 1997, with real-time and coincident billing scheduled for availability in 1998.

Interactive voice response units were installed on OPPD's trouble call and customer account senice telephone lines. This allowed OPPD to answer calls faster, to handle calls more efficiently, to provide information about electric b;11s and customer programs, and to improve the infonnation available during outage situations.

Proud and Proactive OPPD prides itself in its commitment to the emironment and operated in full regulatory compliance in 1996. In addition, OPPD improved on its 1991-1995 cumulative commitment for carbon dioxide reduction by 3.5 percent.

For the sixth straight year, recycling efforts for fly ash - a coal-combustion by-product - resulted in a profit rather than an expense for the utility. Numerous road and construction projects in the service area have utilized fly ash from OPPD coal-fired power plants.

OPPD also received a regional award for the development and implementation of its M= '

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(which came on-line in 1P'y or the recise N ' %h. . .. . tracking of inventory kept. 4te at the

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expandedits paper recycling program, k []

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of paper being recy-R cled.The utility also S 1 S. 9 . , N l recy( t5 tons of / / j'///

///n[/Mg cardboard,6$3 poundsof alu- 1 minum cans, as well ( \ - .

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To help prepare .s I- g OPPD for mandates , .

"' m of the Faergy Policy 2 Act of l992,0 PPD ..

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purchased a 1996 OPPD encourages its employees to be involved in their communities. Examples in 1996 ranged from serving as judges at science fairs, like this one, to participating in tree-planting projects, mentoring Solectria Force en rts, and rnare.

electric sedan.

Operating this unit will provide valuable infom1ation about the viability of using electric vehicles to satisfy the alternative fuel mandates required in the act.

Reliable and Resourceful Several OPPD programs benefitted customers and their communities. The Energy Assistance Program provided a record amount of nearly $100,000 in financial assistance to those having difficulty paying energy-related expenses. The Energy Advisor, a free telephone service, provided energy infonnation to more than 4,000 customers. A tree promotion program sponsored the planting of 5,500 trees and shrubs. And more than 70,000 elementary school children received electric safety information and materials through the annual Kite Safety Program.

OPPD also helped develop and present the first annual One-on-One Mentoring Program at the Omaha s Home for lloys. Representatives discussed OPPD's own mentoring program for elementary school children, while local social service agencies, schoci systems, church groups and businesses discussed ways to follow-up with these children through high school.

% hether for a child or the utility, OPPD is building a future with a great deal of promise. In recent years, OPPD has become more progressive and more competitive. While proud of its past accomplishments, OPPD continues to look ahead with anticipation of offering customers the best value in the area.

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Minianning:

In December 1946, the Omaha Public Power District funded the purchase of the Nebraska Power Company with a bank loan for $42,000,000. Revenue bonds were issued in February 1947 to pay off loan. Since then, $2,735,990,000 of additional bonds have been sold.

In December 1996, the District defeased to maturity the remaining $157,270,0001992 Series B Bonds using funds on hand. The District also had scheduled retirements of $29,100,000 of revenue bonds in 1996.

This defeasance and retirements bring the total of bonds redeemed and refunded through 1996 to

$2,016,970,000, leaving outstanding bonds of $761,020,000 at December 31,1996. During 1996,

$47,868,000 ofinterest expense was charged to operations on outstanding boncis, representing an annualrate of 5.2%

Outstanding commercial paper at December 31,1995, was $50,000,000. During 1996, $ 1,761,000 of interest expense was charged to operations on outstanding commercial paper, repreenting an avera annual rate of 3.5% The outstaading subordinated obligation at December 31,1996, totalled $4,218,000.

During 1996, $382,000 of interest expense was charged to operations on the outstanding subordinated obligation, representing an average annual rate of 9.0% Outstanding Minibonds at Deceniher 31,1996, w

$29,532,000. During 1996, $1,786,000 of interest expensc was charged to operations on the outs Minibonds, representing an average annual rate of 6.0%

Gross Electric Plant amounted to $2,249,455,000, and Nuclear Fuel (at amortized cost) amounted to 560,278,000 at December 31,1996. Accumulated earnings reinvested in the business increased $40,205 to a total of $851,504,000 during 1996, while total assets decreased $121,513,000 to a total of

$2,019,877,000.

Independent Auditors' Report Omaha Public Power Distnct:

We have audited the accompanying balance shcets of the Omaha Public Power District as of December 31,1996 and 1995, and the related statements of net earnings and accumulated eamings reinvested in the business and of cash flows for each of the three years in the period ended December 31,1996. These financial statements are the responsibility of the District's management. Our responsibility is to express an opinion on these financial statements based on our audits.

I We conducted our audits in accordance with generally accepted auditing standards and Gournment Auditing Standards issued by the Comptroller General of the United States. Those standards require that we plan cnd perfomi the audit to obtain reasonable assurance about whether the fmancial statements are free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall fmancial statement presentation. We believe that our audits provide a reasonable basis for our opinion.

In our opinion, such financial statements present fairly, in all material respects, the financial position of the Omaha Public Power District as of December 31,1996 and 1995, and the results of its operations and its cash flows for each of the three years in the period ended December 31,1996, in conformity with generally accepted accounting principles.

In accordance with Govenunent Auditing Standants, we have also issued a report dated February 19,1997, on our consideration of the District's intemal control structure and a report dated February 19,1997, on its compliance with laws and regulations.

h blf DEL 0fffE& TOUCHE LLP Omaha, Nebraska February 19,1997

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Omaha Public Power District Balance Sheets, December 31,1996 and 1995 i

s. I ASSE7S NOTES 1996 199S (thousands)

U111JTYPLANT Atcost: 2,9 Electric plant (includes construction work in progress -

of $84,645,000 and 5109,036,000, respectively) 52,249,455 52,168,408 trss accumulated depreciation 837,216 774,687 ,

Electric plant-net 1,412,239 1,393,721 Nuclear fuel-at amortized cost - 60,278 67,223 Utility plant-net 1,472,517 1,460,944 SPECLAL PURPOSE FUNDS - (primarily at amortized cost): 3,4 Construction fund.

26,883 140,898 Electric system revenuelond fund (net of current portion) - 44,836 49,286 Segregated funds =

10,293 10,215 Segregatedfund collateralizedsecurities-8,285 13,499 Decommissioning funds-113,110 96,871 Deferred compensation fund--

99,851 81,171 Totalspecialpurpose funds.

303,258 391,940 CURRENTASSE15:

Cash and cash equivalents - 4 53 24,709 Revenue fund - U.S. Govemment securities (at amortized cost)... 4 17,236 17,190 Electric system revenue bond fund - current portion .. 41,886 47,191 Accounts receivable.

28,539 27,280 Unbilled revenues 16,351 16,512 Fossilfuels ataveragecost 9,609 9,664 Materials and supplies - at average cost 36,392 36,734 Other-5,742 10,846 Totalcurrent assets-155,808 190,126 DEFERRED CilARGES.- 5 88,294 98,380 TOTAL 52,0i9,877 52,141,390 See wrestofirarialstati,ri<rirs. l 1

NOTES 1996 1995 LIABIlJ11ES (thousands)

LONG-TERM DEUT:; 2 Electric system revenue londs - net of current portion:

Serial bonds,3.7% to 6.05% due

$ 421,070 $ 508,305 annually from 1997 to 2010__

Term tends,5.25% to 626 due 312,790 409,985 at various dates from 2009 to 2017__

733,860 918,290 Totalelectric system revenue bonds 50,000 50,000 j Electric revenue notes - commercial paper series -

29,532 29,749 Electric revenue notes-minitonds 4,116 4,219 Subordinated obligation-817,508 1,002,258 Total.

8,391 10,409 less unamortized discounts 809,117 991,849 Iong-term debt - net-9,10 COMMITMENTS AND CONTINGEhT LIABILITIES t

3 6,652 6,177 LIABILITIES PAYABLE IROM SEGREGATED IUND -

CURRENT LIABillTIES:

2 27,160 29,100 Current portion of electric system revenue bonds 102 93 Current portion of subordinated obligation -

37,478 30,229 Accounts payable 14,561 14,328 Accrued paymentsinlieu of taxes._

19,712 23,540 Accruedinterest 1,577 10,735 Accrued production costs-20,446 24,026 Other.

121,036 132,051 Totalcurrentliabilities -

OlllERLIABiljTIES:

113,110 96,871 Decommissioning costs._

7 99,851 81,171 Deferred compensation._

8 18,607 21,972 Other.

' 231,568 200,014 Totalotherliabilities -

851,504 811,299 ACCUMULATED EARNINGS REINVESTED IN Tile BUSINESS

$2,019,877 $2,141,390 TOTAL.-

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Statements of Net Earnings and Accumulated Earnings Reinvested in the Business for the Three Years Ended December 31,1996 1996 1995 1994 ,

OPERATING REVENUES (thousands) 5420,090 5412,354 5409,696 OPERAllNG EXPENSES:

Operation:

Fuel-78,946 77,717 Otherproduction-- 77,139 68,536 75,328 Transmission- 71,045 3,595 3,362 Distribution 2,698 16,802 15,632 Customer accounts. 15,929 11,017 11,081 10,754 Customer serviceandinformation..

4,394 4,086 Administrative andgeneral. 3,860 18,007 15,742 Maintenance 14,648 49,019 41,630 Totaloperation and maintenance- 39,523 250,316 244,578 Depreciation- 235,596 71,574 59,062 Decommissioning.- 56,824 8,058 7,987 Paymentsinlieu of taxes.. 7,980 15,499 15,263 Totaloperatingexpenses . 15,515 345,447 326,890 315,915 OPERAllNG INCOME.

74,643 85,464 93,781 OTiiERINCOME CREDIl5(CilARGES):

Interestincome -

22,076 20,902 Allowance for funds used during construction - 15,118 3,066 4,055 3,660 Allowance for funds used for nuclear fuel 315 328 Other net 1,142 (3,782) (4,878) (3,728)

Totalotherincome credits-net -

21,675 20,407 16,192 EARNINGS BEFOREINTERESTEXPENSE.= 96,318 105,871 109,973 INTEREST EXPENSE-56,113 57,840 57,858 NET EARNINGS.

40,205 48,031 5?,11f ACCUMUIATED EARNINGS REINVESTED IN TIIE BUSINESS,BEGINNM OFTliE YEAR 811,299 763.268 711,153 ACCUMULATED EARNINGS REINVESTED IN lliE BUSINESS, END OFTifE YFAR-S851,504 5811,299 5763,268 Sxnoin tofinarnialstatanatts.

1 Statements of Cash Flows for the Three Years Ended December 31,1996 1996 1995 1994 (thousands)

CASil FLOWS Ilt0M OPERAllNG ACll\TFIES:

5 74,643 5 85,464 5 93,781 Operatingincome-Adjustments to reconcile operating income to net cash prmided by operating aethities:

71,574 59,062 56,824 Depreciation 24,564 27,725 32,433 Amortization of nuclear fuel..

(3,367) (840) 207 increase (decrease) in other liabilities.

Other 10,027 2,975 3,214 Changes in current assets and liabilities:

Revenue fund - U.S. Government securities (46) (10,054) (4,125)

Accounts receivable (1,259) 1,381 191 Unbilled revenues. 161 (998) 279 Materials and supplies.. 342 456 (752)

Fossilfuels. 55 (202) (2,605) 7,249 (4,102) 7,398 Accounts payable--

Accrued paymentsinlieu of taxes - 233 (251) 410 (11,477) (1,893) 13,708 Other -

172,699 158,723 200,963 Net cash provided from operating activities.

CASil FLOWS FROM CAFFIAL AND RElATED FINANCING ACllVillLS:

Prcceeds from long-tenn borrowings.- - - 9,789 (186,113) (27,395) (23,680)

Principal reduction of long-term debt -

(56,185) (53,875) (52,234)

Interest paid onlong-term debt.-

(87,026) (81,340) (112,994)

Acquisition and construction of capital assets .

(17,301) (11,982) (3,677)

Acquisition of nuclear fuel (346,628) (174,592J (182,796) l Net cash used for capial and related financing activities l

CASil FLOWS FROM INVESilNG ACll\TrifS:

Purchase of special purpose funds - investment securities (711,406) (825,567) (614,960)

, Maturities and sales of special purpose funds -

investment securities- 835,484 818,547 601,536 Net change in electric system revenue bond fund - current 5,305 (1,432) (4,587)

Interest oninvestments.- 19,890 13,695 9,166 149,273 5,243 (8,845)

Net cash provided from (used for) investing activities (24,656) (10,626) 9,322 INCREASE (DECREASE) IN CASil AND CASil EQUIVALEMS...

CASil AND CASil EQUIVALEMS, llLGINNING OF lliE YEAR.. 24,799 35,335 26,013 CASil AND CASli EQUIVALEN15, END OF111E YEAR ;- 5 53 5 24,709 5 35,335 he notes to financialSlalL7nt1115.

l

Notes to Financial Statements for the Three Years Ended December 31,1996

1.

SUMMARY

OFSIGNIFICANT Amortization of nuclear fuelis based upon the cost thereof, ACCOUNTING POUCIES which is pro-rated by fuel assembly in accordance with the Organization and Business - Ee Omaha Public Power uma enn t ead asemWpduces District, a political subdivision of the State of Nebraska, is a Accrued Production Costs - Accrued production costs public utility engaged solely in the generation, transmission, account for advance collections subject to refund under the and distribution of ekctric power and energy and other related Fuel and Production Cost Adjustment (FPA) clause of the activities. The Board of Directors is authorized to establish District's rate schedules. During 1995, the District approved a rates. The District is not liable for Federal and state income or $10,000,000 refund to its customers which was applied ad valorem taxes on property; however, payments in lieu of through the Fuel and Production Cost Adjustment. This taxes are made to various local govemments.

refund had the net effect of increasing accrued production Basis of Accounting - The accounting records of the District c sts by $3,800,000 at December 31,1995, and reducing are maintained generally in accordance with Financial per tm, g revenues and net earnings by $3,800,000 and Accounting Standards, Government Accounting Standards and $6,200,000 for 1996 and 1993, respectively. During 1996, the the Unifonn System of Accounts prescribed by the Federal d ppmwdhsnnnatonoMNaumn AprH Energy Regulatory Commission. '

Accounting for Revenues - Meters are read and bills are Deferred Charges - Certain costs and charges are deferred rendered on a cycle basis. Revenues earned after meters are nd amodzed owr the period that ratepayers are expected to benefit. The most s,igmficant items are:

read are estimated and accrued as unbilled revenues at the end of each accounting period.

Deferred Financing Costs - Debt discount and expense and Cash and Cash Equivalents - For purposes of the Statements m rtizable charges relating to refunded debt are amortized of Cash Flows, the District considers highly liquid investments r

$ wr ws cha&ues to WMwy of the Revenue Fund purchased with a maturity of three ECU#*'

months or less to be cash equivalents. Safety Enhancement Program (SEP) Fort Calhoun Utility Plant - Ee costs of property additions, replacements of Station - Certain costs arising from the District's SEP at the units of property, and betterments are charged to electric plant. Fort Calhoun Station have been deferred and are bcing Maintenance and replacements of minor items are charged to

• "' " F IS ""b operating expenses. Costs of depreciable units of electric plant Federal Enrichment Facility Decommissioning and retired are eliminated from electric plant accounts by charges, Decontamination Costs - Costs arising from the Energy less salvage plus removal expenses, to the accumulated depre. Policy Act of 1992's funding mandate for the decommission-ciation account. ing and decontamination of Federal enrichment facilities An allowance for funds used, approximating the District's w been deferred and are being amortized over fifteen current cost of financing ekctric plant construction and the p rs Wmugh purchase of nuclear fuel, is capitalized as a component of the Low-Level Radioactive Waste Site Development - This cost of the utility plant. This allowance was computed at includes costs for the District's share of the cost to locate, 4.3%,4.5% and 4.4% for both construction work in progress license and develop a disposal site for low-level radioactive and nuclear fuel for the years ended December 31,1996,1995 waste. The District will commence amortization of these and 1994, respectively. costs when the Development's status is finalized.

Depreciation and Amortization - Depreciation is computed Nuclear Fuel Disposal Costs - Permanent disposal of spent on the straight-line basis at rates based on the estimated useful nuclear fuelis the responsibility of the Federal Govemment lives of the various classes of property. In October 1996, the under an agreement entered into with the United States District revised its 1996 depreciation rates for nuclear, trans.

Department of Energy (DOE). Under the agreement, the mission and distribution properties. As a result, an additional District is subject to a fee of one mill per net kilowatt-hour

$10,000,000 of depreciation was accrued from operations dur- generated and sold on all nuclear energy generation, which is ing the year. Depreciation expense has averaged approximately paid quarterly to the DOE. The spent nuclear fuel disposal 3.8%, 3.3% and 3.3% of depreciable property for the years costs are included in the District's nuclear fuel amortization ended December 31,1996,1995 and 1994, respectively, and are colketed from customers as part of fuel costs. In July 1996, the U.S. Court of Appeals confirmed DOE's statutory obligation to accept spent fuel by 1998.

At December 31,1996 and 1995, the following Electric System Nuclear Decommissioning -The District's Board of Directors Revenue Bonds were also legally defcased: 1973,1986 Series A, has approved the collection of nuclear decommissioning costs 1989 Series A, and 1992 Series A. Such bonds are funded by based on an independent engineering stuoy of the costs to Government securities deposited by the District in irrevocable decommission the fort Calhoun Station - Unit No.1. The escrow accounts. Accordingly, the bonds and the related decommissioning estimates accepted by the District's Board of Directors (which exceed the Nuclear Regulatory Commission's Government securities escrow accounts have been removed minimum funding requirements) for 1996 total $378,200,000 from the District's balance sheets.

in 1996 dollars and for 1995, $373,000,000 in 1995 dollars Electric Revenue Notes - Commercial Paper Sen.es-The See Note 3)' District has authorized the issuance of tax-exempt commercial Use of Estimates -The preparation of financial statements in paper of up to $50,000,000 at December 31,1996 and 1995, which is supported by a credit agreement which expires in conformity with generally accepted accounting principles July 1998. At December 31,1996 and 1995, the District had requires management to make estimates and assumptions that

$50,000,000 of commercial paper issued and outstanding. The affect the reported amounts of assets and liabilities and disclo-sure of contingent assets and liabilities at the date of the finan- average borrowing rates at December 31,1996 and 1995, were cial statements and the reported amounts of revenues and 3.5% and 3.7%, respectively.

expenses during the reporting period. Actual results could EkcMc Revenue Notes - Minibonds - The Minibonds at differ from those estimates. December 31,1996 and 1995, consist of current interest-bearing and capital appreciation Minibonds, which are

? LONG TERM DEBT

~ payable on a parity with the District's Ekctric Revenue Notes -

Commercial Paper Series, both of which are subordinated to The District utilizes proceeds of debt issues primarily in the outstanding bonds. The outstanding balances at financing its construction program.

• "* ~

Electric System Revenue Bonds - Maturities of Electric E E System Revenue Bonds outstanding at December 31,1996, due 1997 through 2001, are as follows (in thousands): 1992 Minibonds, due 2007 (6.0%) 5 9,75 ,888 1993 Minibonds, due 2008 (5.35%) 9,839 9,897

" ' 1994 Minibonds, due 2009 (5.95%) 9,934 9.964 529,532 $29,749 2000. $31,660

..533,080 1

2001.. Submdinated Obligation - The suix)rdinated obligation is The District's bond indenture provides for certain restrictions, payable in annual instaHments of $481,815, including interest, the most significant of which are: through 2014.

Additional bonds may not be issued unless estimated net Fair Value Disclosure The estimated fair value amounts were receipts (as defined) for each future year will equal or exceed determined using rates that are currently available for issuance 1.4 times the debt sersice on all bonds outstanding in- of debt with similar credit ratings and maturities. As market cluding the additional bonds being issued or to be issued interest rates decline in relation to the issuer's outstanding in the case of a power plant (as defined) being financed in debt, the fair value of outstanding debt financial instruments increments. with fixed interest rates and maturities will tend to rise.

Conversely, as market interest rates increase, the fair value of In any three-year period, at least 7-1/2% of general business Utstanding debt financial instruments will tend to decline.

income (as defined) must be spent for replacements, Fa.ir value wyH nonnaHy approximate carrying amount as the I renewals, or additions to the ekctric system. Any deficiency debt fmancial instrument nears its maturity date. The use of is to be spent within two years thereafter for such purposes difterent market assumptions may have an effect on the or,if not so spent, is to be used for bond retirements in estimated fair value amount. Accordingly, the estimates advance of maturitv. presented herein are not necessarily mdicative of the amount in December 1996, the District legally defeased the outstand- that bondholders could realize in a current market exchange.

j ing 1992 Series B Electric System Revenue Serial and Term Bond by placing securities with a carrying amount of )

$160,765,000 in irrevocable escrow accounts to be used solely for satisfying scheduk<l payments of principal and interest.

Notes to Financial Statenlents for the Three Years Ended December 31,1996 The aggregate carrying amount and fair value of the District's The Deferred Compensation Fund is valued at market value long term debt, including current portion, were as follows at December 31,1996 and 1995: and is used to account for employee and District contributions and related eamings pursuant to the District's Supplemental 1996 1995

" "S "(

Carrying Fair Carrying Fair Amount Value Amount Value

4. DEPOS115 AND INVESTMENTS

$844,770 5855,774 $1.031,451 51,066,774 Ilank Deposits - The District's bank deposits at December 31, 1996 and 1995, were entirely insured or collateralized with securities held by the District or byits agent in the District's

3. SPECIAL PURPOSE IUNDS name.

Special purpose funds of the District are as follows: Investments - The District's cash equivalents and investments The Construction Fund is to be used for capital improvements, included in the Construction Fund, Dectric System Revenue additions and betterments to ard extensions of the District's Bond Fund, Segregated Funds, Decommissioning Funds and electric system, or for paymem u principal and interest on the Revenue Fund are held by the District's agents in the Dectric System Revenue Bonds. District's name in accordance with the District's bond covenants and State statutes. The District does not invest in The Dectric System Revenue Bond Fund is to be used for the securities such as mortgage-backed investments and reverse retirement of term and serial bonds and the payment of the repurchase agreements. At December 31,1996, all of the related interest.

District's investments in the aforementioned funds are The Segregated Funcis represent assets held for payment ofaccounted for at their amortized cost basis. The investments customer deposits, refurdable advances, certain other liabili- consist of U.S. Govemment and Agency securities and ties or refunds and funds set aside as part of the District's self- Repurchase Agreements collateralized by U.S. Govemment insured health insurance plans (see Note 8). The balances of Securities. At December 31,1996, gross unrealized holding the funds at December ?! were as follows: gains amoimted to $6,783,000 and gross unrealized holding losses amounted to $265,000 Allof theDistrict'sinvestments

-39 , g at December 31,1996, are schedukd to mature within five years. The composition of investments at December 31,1996 Segregated Funds-cu90mers 5 6,652 5 6,177 nd N, was aMon Segregated Funds - self4nsurance 3,641 4,038 1996 1995 TotalSegregated Funds $10,293 510,215 d M Cost Value Cost Value The Segregated Fund - Collateralized Securities represents U.S. Government and (thousands) investments in short-term securities (generally, repurchase Agency Securities $253,658 5260,176 5385,517 $396,545 agreements collateralized by Government securities) as permitted byState statute. RepurchaseAgreements (collateralimi by U.S.

The Decommissioning Funds are utilized to account for the Government Securities) 8,924 8,924 14,342 14,342 investments held to fund the estimated cost of decommission- Total 5262,582 5269,mu ing Fort Calhoun Station - Unit No. I when its operating $399,859 5410,887 license is scheduled to expire. ' Die Decommissioning Funds are held by outside trustees in compliance with the decommis-sioning funding plans approved by the District's Board of Directors (see Note 1). The balances of the funds at December 31 were as follows:

L926 L925 (thousand4 Dwommissioning Trust 19(X) Plan 595,639 582,287 Decommissioning Trusi- 1992 Plan 17,471 14,584

) Total Decommissioning Funds $113,110 196,871 l

5. DEFERRED CHARGES

7. SUPPLEMENTAL RETIREMENT SAVINGS PLAN The composition of deferred charges at December 31,1996 and 1995, was as follows: The District has established a Supplemental Retirement Savings Plan for all eligible employees that allows contribu-1996 1995 tions by employees that are partially matched by the District.

(thousands)

Deferred financing costs $43,260 By agreement, contrib'ltions and related earnings under the

$45,053 Safety Enhancement Program- Fort Plan remain the property of the District until an employee Calhoun Station leaves the District. The District's matching share of contribu-6,410 9,615 Federalenrichment facility tions in 1996,1995 and 1994, was $3,546,000, $2,951,000 and decommissioning and $2,699,000, respectively.

decontamination costs 12,858 13,722 Recently enacted Federal law requires all deferred compensa-Iow-level radioactive waste site development tion plan assets and income be held in the employee's name 10,081 9,193 Other (trust, custodial account or annuity contract) rather than 15,685 20,797 remain part of the employer's assets. The trust requirement Total $88,294 $98'380 change must be implemented beforeJanuary 1,1999. The District anticipates transferring the Deferred Compensation Fund to a trustin 1997.

6. PENSION PLAN Substantially all employees of the District are covered by a8. SELF-INSUPdNCE single-employer defined benefit plan (the " Plan") which pro- HEALTH PROGRAM vides retirement and death benefits. The Plan was established and may be amended under the direction of the District's The District's Administrative Service Only Health Insurance Board of Directors. Cost-of-hvmg adjustments are providedProgram t is used to account for the health insurance claims of retirees and beneficianes at the discretion of the Board ofapproximately 55% of active and retired employees in 1996.

Directors. T,he District adopted the provisions of Govern- The remainder of the emplovees participate in a health pl:n mental Accounting Standard No. 27, Accounting for for which the District is not 'self-insured. Substantially all Pensions by State and Local Governmental Employers, forempoyees its in 1995 and 1994 participated in the Administra-financial statements effectiveJanuary 1,1996. The adoption tive Service Only Health Insurance Program. With respect to had no material effect on the financial statements. the Administrative Service Only Health Insurance Program, The current Plan information, based on the most recent reserves sufficient to satisfy both statutory and District-actuarial valuation on January 1,1996, was: directed requirements have been established to provide risk g, protection. Additionally, private insurance covering claims in IYuN/ ^0f'! dild runded owered PNa' "" * '"

• N Assets baMtv MD AR Rabo Payrou Gw. Payrke '

182 @ ** ** b (** has been purchased. Actual net claim payments during 1996, 1995 and 1994 were $7,900,000, $10,102,800 and $9,936,800,

$390,642 $27 0 $117,562 1411% $1 3117 114.0 % rpdy, WM M noMxad M OMe upd claims level.

Contribution requirements are actuarially determined, using the Attained Age (level percent of pay) Method. Employees contribute 4.0% of their covered pay to the Plan. The District is obligated to contribute the balance of the funds needed on an actuarialh' determined basis. For 1996, there was no annual pension cost, net pension obligation or District contribution made to the Plan. Plan contributions by District employees for 1996 were $4,124,700. The actuarial liability was determined using an assumed discount rate of 7.25%. The expected rate of retum on assets was 9.0%. An average annual rate of com-pensation increase of 5.0% was assumed. No annual increase

, was assumed for postretirement benefits.

R l

Notes to Financial Statements for the Three Years Ended December 31,1996

9. COMMITMENI5 10. CONTINGENT LIABILITIES The District's Construction Budget provides for expenditures Effective August 20,1993, the Price-Anderson Act was of approximately $94,642,000 during 1997 and $30,458,000 amended. Under the provisions of the Act, the District and all during later years, of which approximately $25,500,000 was other licensed nuclear power plant operators could each be under contract at December 31,1996. assessed for claims in the event of a nuclear incident in am unts not to exceed a total of $79,275,000 per reactor per The District has coal supply contracts which extend through m en a madmum of $10,M,Wr mdendn any 1998 with minimum future payments of $16,700,000. The ne calendar year. These amounts are subject to adjustment District also has a coal transportation contract with minimum every five years m accordance with the Consumer Price Index.

future payments of $33,300,000. These contracts are subject to price escalation adjustments. The District is engaged in routine litigation incidental to the conduct of its business and, in the opinion of its General Contracts with estimated future payments of $21'000,000 are Counsel, the aggregate amounts recoverable from or to the in effect for nuclear fuel. In addition, at December 31,1996, District, takmg into account estimated amounts prosided m the District was under contract in the amount of $21,100,000 the fmancial statements and insurance coverage, are not for the cost of fumishing uranium enrichment services. material.

11. SUBSEQUENT EVENT In January 1997, the District scid $80,000,000 of Electric System Revenue Bonds,1997, Series A, due in installments through 2001 at interest rates ranging from 3.75% to 5.0%.

l Net Receipts and Debt Service Coverage for the Five Years Ended December 31,1996 (Unaudited) l 1996 1995 1994 1993 1992 (thousands)

Operating revenues . . . $420,090 $412,354 $409,696 $402,360 $373,113 Operation and maintenance expenses.. 250,316 244,578 235,596 231,930 226,063 Pa>mentsinlieuof taxes. 15,499 15,263 15,515 15,104 13,924 Net operating revenues . 154,275 152,513 158,585 155,326 133,126 investment income (1) . . 2,846 2,915 2,380 3,019 4,356 Net receipts . $157,121 $155,428 $160,965 $158,345 $137,482 Totaldebt senice(2) . $ 71,637 $ 78,229 $ 77,017 $ 78,435 $ 74,268 Debt service coverage 2.19 1.98 2.08 2.01 1.85

0) Income derived from the investment of moneys in the Debt senice Fund and the Resene Acsaunt of the Electnc system Revenue Bond Fund under the District's bond inde (Resolution No.19 and Resolution No.1788).

(2) Total Debt senice for fxith Rewlution No.19 and Resolution No.1788 Bonds is accrued on a calendar-year basis smlilar to the computation of Net Receipts Interest funded from tx)nd proceeds is not included in Total Debt senice.

l l

Electric System Revenue Bonds Outstanding (In Thousands)as ofDmmhr31,1996

1. ~ '

t. ..

l-. "' 1993 ISSUE . .{ 1993 ISSUE  ! !1993 ISSUE.

[ SERIES A >

SERIES B

[ SERIES C1

[ 1 4:

(

Maturity Date (l' Lint /

4 lat.

i.

If f int..

February 1 I IRatei ?Amt; 1 Rate Amt. :Ratet J Amt..

[

g ..

s + r.

1997 p 4.20l :8,390; f 4.10 7,440

[

1998 [ s4.45) 9,000 L12,040 ' ,

1 4.35 7,510 4,980 p

1999 j . " 4.65 ' 4.55 m

2000 {L l4.85 '. 113,760 .l "

4.70 4,540 2001 '14,520 t 4.80 4,620  ;{ j.

[ ' 5.00 , g 2007 k 5.00.- 415,430; 4.90 4,700 '

2003 L :' 5.10 16,140--  : 5.00 6,340 h: 5.25 118,220. j 5.00 4,670 2004 2005 (18,780: j 5.10 5,710 h

e

[5.30 L 2006 5.40;  :-20,150 : 1:; 5.20 5,710 s-( ..

2007 5.50)  ! 21,330? (j 5.30 6,230 2008 R '  ! 5.40 9,340 [L- 5.40; 13,230:

2009 h j 5.60* 9,340 h L5.40; 14,020 l l 2010 L  ; 5.60* 9,340 f l5.50 14,860 :

2011 g ] 5.60* 8,300 5.50* -15,7501 2012 I L

1' 5.60* 8,300 b ' 5.50* 16,700:

2013 5.70* 7,260

[ .5.50*. :17,700 2014 5.70* 7,260 7,260

[ . 5.50*f ,

118,770:

19,890 2015 ,

5.70* p. '5.50*; ..

l 2016 (  ? 5.70* 7,260 o t

K5.50* _J21,080 i:

2017 h 5.70* 5,600 f; 5.50* - ,22,360 I

r ,

b Total  ! L

[

, [167,760; J 141,710 174,360 :

Outstanding .

[:

t Bonds I... ,

[ .

Redeemed t012/31/96

[

! 16M40 22,490 s M{u

L 4 Original Issue

[ >

1 184,7001

'l 164,200 l [

l,

- Q j)?1,360' s F [

t

• LanL

• Term lionds The 1973 hsue was defeased to matunty with f:nal matunty on Februan 1,3m The 1986 Senes A hsue was defeawd to matunty with f.nal matwtyn id ' D15.

The 1989 Senes A hsue was advance refunded and will be ca!!ed on February 1,2Wt The 1992 Senes A hsue waudvacu refunded and will be calln! 'n Ichru t , a d:1

b 1993 ISSUE - 1993 ISSUE - l SERIES D

[-  ; SERIES EL i i :. 1 i j Total Int. f[j Lint? i Principal Maturities Annualized Debt Rate Amt. h Rate y Amt.. ) February 1 Senice 3.90 4,580 3.70  : 6,750.- , 27,160 65,997 4.10 4,680 .- 3.85 : 7,120  ? 28,310 66,082 4.25 5,060  ; 4.00 - " L7,510 j 29,590 66,793 4.40 5,440 17,920 4

31,660 66,834 r

4.101  ;

4.50 5,580 ~ 4.20 ; 8,360. s 33,080 66,970 l

4.60 5,830 II 4.30L- 8,820i 34,780 68,294 4.70 6,080 [ 430 1 9,300:. '

37,860 68,390 4.75 6,960

[ 4.50 l ' 9,820 - 1 39,670 68,688 4.80 7,110 4.50 10,360' 4.90 7,280

[  : 41,960 68,730 4.60J 10,930 44,070 60,780

[

L 5.00 10,080 e 37,640 54,486 5.10 11,000 33,570 53,466

[- 4 5.25*

5.25*

11,430 11,970

[ 34,790 52,961

[

36,170 51,545 5.25* 12,590

[ '<

36,640 51,089 5.25* 13,270 r 38,270 49,775 -

5.25* 13,990 l

[ 38,950 49,373

[F 5.30* 14,730 40,760 49,056

' l 5.30* 15,520 42,670 49,451 5.30* 17,120 I 45,460 31,174 27,960 2,459 l

l 190,300 86,890' 761,020 1,162,393 f ,

! 3 l h-12,100

[ '18,210 69,740 l

l

[

202,400 l L105,100 ' 830,760 t

The 1992 Series B Inue was defeawd to matunty with final matunty on lebruary 1,2017.

i

+

1996 - 1995 Comparisons 4' OPERATING REVENUES inillions ofJollars 409'7 (thousands)

Itteent 373.1 -

Percent of year of year increase 350*8 Classification 1996 Total 1995 (Decrease)

' "*d'"'i^' "7 #2' 4*5 5171 8 7 ("' '

311'5 General 5ervice Small 150,388 35.8 145.006 3.6 l

' GeneralSenice large 75,016 17.8 73,395 2.2 Govemment and Municipal 10,937 2.6 B,577 27.5 Other Electric Utilities 6,476 1.5 6,177 4.8 l Accrued Unbilled Revenues (161) 998 ill6.1) j Total Electric Revenues 5412.677 9ti.2 5405,930 1.7 g

Miscellaneous Revenues . 7.413 1.8 6.424 15 4

! 1986~

1988 1990 1992 1994 1996 TotalOperating Revenues 5420.040 100.0 5412.35J 1.9 l

millions ofkilowatt-hours 1,g30 KILOWATTHOURSALES i (thousands) 7,268 7,244

, Classification 6,623 Residential. 2.577,624 32.5 2.571,881 0.2 l 6,591 2,787,471 2.657,948 GeneralSenice Small 35.1 4.9 l 2,305,328 2,124D23 6,144 L , GeneralSenice Lay 29.1 8.5 i

Government and Mur.;cipal 78,710 1.0 79,732 (13)

Other Electric Utilities 173.594 2.2 168,469 3.0 l .

Acaued undmed mowanaoun _ 7.358 ai _ 23a61 m 1985 1988 1999 1992 1994 199) 100.0 7,625,214 4.0 l

Total Energy Sales 7.930.085 1

i

250.3

241'4 millionsofdollars i OPERATIONAND 235.6

! MAINTENANCE EXPENSES 226.1 ithouunds) 214.7 Classification

. Generating Expense 5188,127 75.1 5182,762 2.9 Purchased and Interchanged Power.... (8,230) (3.3) (3,880) (112.1)

Transmhsion and Distnbution.. 35,739 143 33,469 6.8 Customer Accounts 11,018 44 llS81 (0.6)

Customer $ervice and information... 4,304 is 4,086 7.5 1988 1988 1999 1992 1994 1996 Administrative and General . 19.269 7.7 17,0tW) 12.9 TotalOperation and Maintenance Expenses 5250.316 100.0 5244.578 2.3 thousandsofantonm gg3,4 256.0 < ' AVERAGE NUMBER 0F CUSTOMERS

• 249.1 241.6 -

' Claulfication 233.6 237,584 233,879 Residential 87 3 1.6

33,137 GeneralSenice Small 33,993 12.5 2.6 GeneralSenice.Large 99 97 2.1 Other - 563 0.2 551 2.5 p

o Average Cust .."rrs 272.239 100.0 2t7.664 1.7 1985 a1988 1990 1992 1994 1996 m *Awrq Total Tnlw Wdn EnicJ Tkwn!sr

}

Electric Statistics 1

1996 1995 1994 1993 1992 1991 1990 1989 1988 1987 Total 11t aty Plant, including l NeicarIuel(at) tor ernh tin cluusuals olddlan) .. 2,309,733 2,235,631 2,188,106 2,113,562 2,050,336 1,986,679 1,897,546 1.824.757 1,735,654 1,646.734 Iksnded indebtedness tatpar erub (in thomarkh ofddlan) -- 761,020 947,390 974,510 998,000 998,950 891,725 911.265 928,835 845,595 861,605  !

Oprating Revenues l (in thouuuuh ofAdlan) i Residential .. 170,021 171,687 165,813 160,489 141,992 154.215 152,464 146,458 l

General 5enice Small.- 150,388 137,105 125,095 145,096 147,669 144,312 135,262 135,059 135,774 134,821 117,711 GeneralSenice targe.. 75,016 73,395 108,543 75,483 77,760 75,992 76,222 78,375 72,416 61,637 57,561 Government and Municipal..~. 10,937 8,577 10,626 10,505 10,186 9.651 9,685 8,417 Other Ekstric Utilities .. 6,476 7,961 7,726 6,177 4.211 3,673 3,046 3,095 3,824 5,825 20,592 18,623 Accrued Unbillai Revenues.. (161) 998 1,158 (279) (283) (1,654) 1,015 2.753 Miscellaneous... 7,413 6,424 874 211 6,173 5,904 5,477 5,371 5,511 Total... 4,953 4,957 4,354 420,090 412,354 409,696 402,360 373,113 381,959 386,648 375,643 350,837 322,113 Opration & Maintenance I.xpenses Charged to Operations (in tlausuhh ofddlan) .. 250,316 244,578 235,596 231,930 226,063 237,230 241,409 246,204 214,703 193,173 Payments in Iieu of Taxes  !

(in flunsuk6 cfddlan) 15,499 15,263 1 15.315 15,104 13,924 14,359 14,370 13,817 12.358 11.347 i Net Operating Resenues before Depreciation and Decomminioning l (in tl anah ofdollars).- 154,275 1 152,513 158,585 155,326 133,126 130,370 130,869 115,622 123,776 117,593 l Net Earnings Reinvested in the Business (in tiumsnuh ofddlan) .. 40,205 48,031 52,115 45,203 30,255 35,209 40.337 29,584 36.929 31,020 Kilowatt 4four Sales (in thousuuh)

Residential- 2,577,624 2,571,881 2,467,405 2,361,565 2,139,300 2.431.265 2.292,975 2.246,496 2,311,242 2,153A81 .

General Senice - Small.. 2,787,471 2,657,948 2,580.258 2,434,023 2,355,409 2,372,148 2,275,647 2,304.856 2,246,353 2.130,425 General Senice - large .. 2,305,328 2,124,023 1,930,664 1,853,975 1,858,243 l

1,849,141 1,831.635 1,713.362 1,655,600 1,562,108 Govemment and Municipal.. 78,710 79,732 80,906 81,081 80,731 79,087 78,514 77,215 76,133 75,622 Other fjectric Utilities.. 173,594 168,469 177,4S9 153,396 138,862 153,669 137,166 44,935 961.298 719,807 Accrued Unbilkd Kilowatt 4toun... 7,358 23,161 7,707 (4.676) 18,832 29,914 (26.1231 6.695 17,010 (13.682) lotal 7,930,085 7,625,214 7,244,429 6.879,364 6,591,377 6,859,187 6,622.632 6,416,778 7,267,636 6,627,961 Numt rof Customers uverageperpar)

Residentul 237,584 233,879 230,391 227,181 224,107 221,214 218,373 215,194 212,324 204,900 General 5enice Small 33,993 31,137 32,438 31/>85 31,259 30,626 30,117 29,419 28,731 28,109 GeneralSenice large 99 97 95 94 92 91 90 75 75 76 Govemment and Municipal.. 555 542 516 503 4'n 491 475 457 413 417 Other ikctric Utilities 8 9 7 5 5 5 5 4 5 6 lotal... 272.239 267,664 263,447 259,408 253,960 252.427 249,091 245,169 241,568 238,508 Residential 5tatistics (mt7 age) kWh! Customer.. 10.849 10,997 10,710 10.395 9,546 10991 10,5m 10,419 10,885 10.261 Dollar Revenue / Customer... 715.62 734.08 719.70 70641 633.59 647.13 698.18 680.59 64533 595.97 Cents /kWh. 6.65 636 612 6.80 6.64 6.34 6.65 6.52 5.91 5.81 Generating Capability tanrar cruh (in Allowatts)... 2,033,100 1,924,200 1,924,24' 1,924,200 1,883,500 1,k83,300 1,867,200 1,867,900 1,8239 0 1,846?m System Peak Imds dn AllowatN... 1,813,900 1,827,900 1,64 i900 1,u11100 1,442,000 1,605,9m 1,652,300 1,597,000 l # 10,400 1,532,700 Net System Requirements tLilowatt-houn in fluuuuuhl Generated - . . . . 9,260,923 9,073.908 8.876,535 8.846,354 7,651496 9,129,971 7,721,410 7,202,585 7,756,3 9) 7,511,779 Purchased and Net Interdunged (1,096,996) (1,206.817) (1.411694) (1,697,288; (844,178) (2,018,980; (864931) (426,2W; (1,050.747) (1,237,120>

Net ... ..._... 8,163,927 7,867,151 7,457,841 7,149A>6 6,809,318 7,090,991 6,856,479 6.776,286 6305,613 6,274 659 f ) Denotes Negative

i .-

1 John K. Green William C.Jonef Charles P. hioriarty Chairrnanof thethird Senior ricePresidair Assistant Treasuns Assistant Secretary FredJ. Ulrich Willi m D. Dermpt ricechairnun ofthethinz viceIvesidait CarolJ. Kelley AssistantSeaetary N. P. Dodge Jr.

Treasuni Kenneth S. Fielding ricePresident Gwendolyn A.Teeple hilchaelJ. Cavanaugh AssistantSeaetary

'*'"'I W. Gary Gates riaItesidait Janice hf. Bednarz Fred hf. Petersen Assistant Treasunr Presidait chiernavriitottica Dayton D. Wittke, Ph.D.

riceIvesidait hiichaelJ. Czerwinski Assistant Treasunr Eldon C. Papc necutiir riceltesidait. h1artin L Champion ChitfFinancial and Planning officer Assistant Treasunr P.ichard C. Shaney[elt Assistant Treasunr AssistantSeaetary Assistant Treasunr AssistantSaretary l

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OPPD serves 626,000 people in all or part of 13 counties in eastern Nebraska. Electric senice BURT is provided to the following 48 incorporated .

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Alvo Nickerson N Arlington North Bend DOUGLAS Ashland Omaha i Avou Papillion SAUNDERS Bellevue Peru SARPY Bennington Ralston -

Bu CASS h Carter Lake NEBRASKA J (lowa) ,

Cedar Bluffs l OT0E

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' Cook JOHNSON NEMAHAh South Bend i U8I" ,

• Springfield  !

Elkhorn Valley Elmwood Washington PAWNEE RICHARDSON Fort Calhoun GRtna Waterloo

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Hennan W nslow Hooper Yutan '

i Ithaca Kennard OPPD also serves Boys Town, LaVista Elk Creek, Greenwood, Syracuse and j Leshara Tecumseh at wholesale.

4 Imuisville hianley hiead hiemphis Morse Bluff hiurdock

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I eks.en Omaha Public PowerDistrict Energy Plaza 444 South 16th Street Mall Omaha, NE 68102-2247 A business managed, publicly owned electric utihty An Equal Opyntunity Employer 3970P10.5