- -------------------------------------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------------------------------------
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
-----------------_______________
FORM 10-Q
(Mark One)
/X/(MARK ONE)
[x] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF
THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended September 30, 1994FOR THE QUARTERLY PERIOD ENDED MARCH 31, 1995
OR
/ /[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
For the transition period fromFOR THE TRANSITION PERIOD FROM ___________ toTO _____________
Commission File No.COMMISSION FILE NO. 33-7591
-----------------_______________
OGLETHORPE POWER CORPORATION
(AN ELECTRIC MEMBERSHIP GENERATION & TRANSMISSION CORPORATION)
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)(Exact name of registrant as specified in its charter)
GEORGIA 58-1211925
(State or other jurisdiction of (I.R.S. employer
incorporation or organization) identification no.)
POST OFFICE BOX 1349
2100 EAST EXCHANGE PLACE
TUCKER, GEORGIA 30085-1349
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code:code (404) 270-7600
Indicate by check mark whether the registrant (1) has filed all reports required
to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during
the preceding 12 months (or for such shorter period that the registrant was
required to file such reports), and (2) has been subject of such filing
requirements for the past 90 days. YesYES X No
------- -------NO
----- -----
Indicate the number of shares outstanding of each of the registrant's
classes of common stock, as of the latest practicable date. The Registrant
is a membership corporation and has no authorized or outstanding equity
securities.THE REGISTRANT IS A
MEMBERSHIP CORPORATION AND HAS NO AUTHORIZED OR OUTSTANDING EQUITY SECURITIES.
- -------------------------------------------------------------------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------------------------------------------------------------------
OGLETHORPE POWER CORPORATION
INDEX TO QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED SEPTEMBER 30, 1994MARCH 31, 1995
PAGE NO.
________--------
PART I - FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Balance Sheets as of September 30, 1994at March 31, 1995 (Unaudited)
and December 31, 19931994 3
Condensed Statements of Revenues and Expenses (Unaudited)
for the Three Months Ended March 31, 1995 and Nine Months Ended
September 30, 1994 and 1993 5
Condensed Statements of Cash Flows (Unaudited)
for the NineThree Months Ended September 30,March 31, 1995 and 1994 and 1993 6
Notes to the Condensed Financial Statements 7
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 98
PART II - OTHER INFORMATION
Item 5. Other Information 1412
Item 6. Exhibits and Reports on Form 8-K 1612
SIGNATURES 1713
2
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
OGLETHORPE POWER CORPORATION
CONDENSED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
ASSETS
AT AT
MARCH 31, DECEMBER 31,
1995 1994
----------- ------------
(UNAUDITED)
ELECTRIC PLANT, AT ORIGINAL COST:
IN SERVICE $5,104,420 $5,100,299
LESS ACCUMULATED PROVISION FOR DEPRECIATION (1,264,679) (1,231,818)
---------- ----------
3,839,741 3,868,481
NUCLEAR FUEL, AT AMORTIZED COST 100,483 105,683
PLANT ACQUISITION ADJUSTMENTS, AT AMORTIZED COST 6,010 6,275
CONSTRUCTION WORK IN PROGRESS 564,682 538,789
---------- ----------
4,510,916 4,519,228
---------- ----------
INVESTMENTS AND FUNDS:
BOND, RESERVE AND CONSTRUCTION FUNDS, AT MARKET 53,694 64,163
DECOMMISSIONING FUND, AT MARKET 62,096 59,164
INVESTMENT IN ASSOCIATED ORGANIZATIONS, AT COST 16,735 17,371
---------- ----------
132,525 140,698
---------- ----------
CURRENT ASSETS:
CASH AND TEMPORARY CASH INVESTMENTS, AT COST 62,240 190,642
OTHER SHORT-TERM INVESTMENTS, AT MARKET 17,107 -
RECEIVABLES 91,240 90,998
INVENTORIES, AT AVERAGE COST 103,367 95,076
PREPAYMENTS AND OTHER CURRENT ASSETS 11,392 14,857
---------- ----------
285,346 391,573
---------- ----------
DEFERRED CHARGES:
PREMIUM AND LOSS ON REACQUIRED DEBT, BEING AMORTIZED 207,717 161,889
DEFERRED AMORTIZATION OF SCHERER LEASEHOLD 81,595 80,132
DISCONTINUED PROJECT, BEING AMORTIZED 25,885 26,342
DEFERRED DEBT EXPENSE, BEING AMORTIZED 21,683 20,936
OTHER 8,017 7,657
---------- ----------
344,897 296,956
---------- ----------
$5,273,684 $5,348,455
========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED STATEMENTS.
3
OGLETHORPE POWER CORPORATION
CONDENSED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
EQUITY AND LIABILITIES
AT AT
MARCH 31, DECEMBER 31,
1995 1994
---------- ------------
(UNAUDITED)
CAPITALIZATION:
PATRONAGE CAPITAL (NET OF UNREALIZED LOSSES OF $2,324
AT MARCH 31, 1995 AND $3,567 AT DECEMBER 31, 1994
ON AVAILABLE-FOR-SALE SECURITIES) $ 319,201 $ 309,496
LONG-TERM DEBT 4,148,284 4,128,080
OBLIGATION UNDER CAPITAL LEASES 300,108 303,749
---------- ----------
4,767,593 4,741,325
---------- ----------
CURRENT LIABILITIES:
LONG-TERM DEBT AND CAPITAL LEASES DUE WITHIN ONE YEAR 85,761 90,086
DEFERRED MARGINS AND VOGTLE SURCHARGE TO BE
REFUNDED WITHIN ONE YEAR 15,014 21,476
ACCOUNTS PAYABLE 41,822 52,921
ACCRUED INTEREST 20,229 100,010
ACCRUED AND WITHHELD TAXES 7,801 1,566
ENERGY COSTS BILLED IN EXCESS OF ACTUALS 883 2,125
OTHER CURRENT LIABILITIES 10,917 18,177
---------- ----------
182,427 286,361
---------- ----------
DEFFERED CREDITS AND OTHER LIABILITIES:
GAIN ON SALE OF PLANT, BEING AMORTIZED 62,624 63,209
SALE OF INCOME TAX BENEFITS, BEING AMORTIZED 56,217 58,236
ACCUMULATED DEFERRED INCOME TAXES 65,510 65,510
DEFERRED MARGINS AND VOGTLE SURCHARGE 15,568 15,568
DECOMMISSIONING RESERVE 100,944 96,291
OTHER 22,801 21,955
---------- ----------
323,664 320,769
---------- ----------
$5,273,684 $5,348,455
========== ==========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED STATEMENTS.
4
OGLETHORPE POWER CORPORATION
CONDENSED STATEMENTS OF REVENUES & EXPENSES (UNAUDITED)
(DOLLARS IN THOUSANDS)
THREE MONTHS ENDED
MARCH 31,
--------------------
1995 1994
-------- ---------
OPERATING REVENUES:
SALES TO MEMBERS $227,849 $225,458
SALES TO NON-MEMBERS 29,698 42,160
-------- --------
TOTAL OPERATING REVENUES 257,547 267,618
-------- --------
OPERATING EXPENSES:
FUEL 47,517 51,232
PRODUCTION 32,243 32,118
PURCHASED POWER 59,947 53,539
DEPRECIATION AND AMORTIZATION 32,884 33,051
TAXES OTHER THAN INCOME TAXES 5,891 6,105
OTHER OPERATING EXPENSES 10,383 9,691
-------- --------
TOTAL OPERATING EXPENSES 188,865 185,736
-------- --------
OPERATING MARGIN 68,682 81,882
-------- --------
OTHER INCOME (EXPENSE):
INTEREST INCOME 3,312 2,951
AMORTIZATION OF DEFERRED MARGINS 6,462 6,641
ALLOWANCE FOR EQUITY FUNDS USED
DURING CONSTRUCTION 761 681
OTHER 2,834 5,475
-------- --------
TOTAL OTHER INCOME 13,369 15,748
-------- --------
INTEREST CHARGES:
INTEREST ON LONG-TERM OBLIGATIONS 83,008 86,302
ALLOWANCE FOR DEBT FUNDS USED
DURING CONSTRUCTION (9,419) (8,856)
-------- --------
NET INTEREST CHARGES 73,589 77,446
-------- --------
NET MARGIN $ 8,462 $ 20,184
======== ========
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED STATEMENTS.
5
OGLETHORPE POWER CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE THREE MONTHS ENDED MARCH 31, 1995 AND 1994
(DOLLARS IN THOUSANDS)
1995 1994
-------- --------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET MARGIN $ 8,462 $ 20,184
-------- --------
ADJUSTMENTS TO RECONCILE NET MARGIN TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
DEPRECIATION AND AMORTIZATION 47,704 47,213
AMORTIZATION OF DEFERRED MARGINS (6,462) (6,641)
ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION (761) (681)
OTHER (843) (4,690)
CHANGE IN NET CURRENT ASSETS, EXCLUDING
LONG-TERM DEBT DUE WITHIN ONE YEAR AND DEFERRED MARGINS AND
VOGTLE SURCHARGE TO BE REFUNDED WITHIN ONE YEAR:
RECEIVABLES (242) 727
INVENTORIES (8,291) 1,207
PREPAYMENTS AND OTHER CURRENT ASSETS 3,465 (6,937)
ACCOUNTS PAYABLE (11,099) (7,600)
ACCRUED INTEREST (79,781) (85,849)
ACCRUED AND WITHHELD TAXES 6,235 (1,573)
ENERGY COST BILLED IN EXCESS OF ACTUAL (1,242) (1,814)
OTHER CURRENT LIABILITIES (7,260) (30,095)
------- --------
TOTAL ADJUSTMENTS (58,577) (96,733)
------- --------
NET CASH USED IN OPERATING ACTIVITIES (50,115) (76,549)
------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
PROPERTY ADDITIONS (36,086) (48,860)
NET PROCEEDS FROM BOND, RESERVE AND CONSTRUCTION FUNDS 11,712 31,372
DECREASE IN INVESTMENT IN ASSOCIATED ORGANIZATIONS 636 273
INCREASE IN OTHER SHORT-TERM INVESTMENTS (17,107) -
(INCREASE) DECREASE IN DECOMMISSIONING FUND (1,041) 1,842
OTHER - (3,434)
------- --------
NET CASH USED IN INVESTING ACTIVITIES (41,886) (18,806)
------- --------
CASH FLOWS FROM FINANCING ACTIVITIES:
DEBT PROCEEDS, NET 88,545 243,989
DEBT PAYMENTS (124,534) (318,056)
REFUND OF VOGTLE SURCHARGE - (1,005)
OTHER (412) 97
------- --------
NET CASH USED IN FINANCING ACTIVITIES (36,401) (74,975)
------- --------
NET DECREASE IN CASH AND TEMPORARY CASH INVESTMENTS (128,402) (170,330)
CASH AND TEMPORARY CASH INVESTMENTS AT BEGINNING OF PERIOD 190,642 244,173
-------- --------
CASH AND TEMPORARY CASH INVESTMENTS AT END OF PERIOD $ 62,240 $ 73,843
======== ========
CASH PAID FOR:
INTEREST (NET OF AMOUNTS CAPITALIZED) $149,265 $161,096
INCOME TAXES - -
THE ACCOMPANYING NOTES ARE AN INTEGRAL PART OF THESE CONDENSED STATEMENTS.
6
OGLETHORPE POWER CORPORATION
NOTES TO THE CONDENSED FINANCIAL STATEMENTS
SEPTEMBER 30,MARCH 31, 1995 AND 1994 AND 1993
(A) The condensed financial statements included herein have been prepared by
Oglethorpe Power Corporation (Oglethorpe), without audit, pursuant to the
rules and regulations of the Securities and Exchange Commission (SEC). In
the opinion of management, the information furnished herein reflects all
adjustments (which included only normal recurring adjustments) necessary to
present fairly, in all material respects, the results for the periods ended
September 30, 1994March 31, 1995 and 1993.1994. Certain information and footnote disclosures
normally included in financial statements prepared in accordance with
generally accepted accounting principles have been condensed or omitted
pursuant to such SEC rules and regulations, although Oglethorpe believes
that the disclosures are adequate to make the information presented not
misleading. It is suggested that these condensed financial statements be
read in conjunction with the financial statements and the notes thereto
included in Oglethorpe's latest Annual Report on Form 10-K, as filed with
the SEC.
(B) Oglethorpe adoptedIn March 1995, the Financial Accounting Standards Board issued Statement
of Financial Accounting Standards No. 115,121, "Accounting for Certain Investments in Debtthe Impairment
of Long-Lived Assets and Equity Securities", asfor Long-Lived Assets to Be Disposed Of". This
Statement imposes stricter criteria for regulatory assets by requiring that
such assets be probable of future recovery at each balance sheet date.
Oglethorpe anticipates adopting this standard on January 1, 1994. Under this Statement, investment securities held by
Oglethorpe are classified as either available-for-sale or held-to-maturity.
Available-for-sale securities are carried at market value with unrealized
gains1996 and losses, net of any tax effect, added to or deducted from
patronage capital. Unrealized gains and losses from investment securities
held in the decommissioning fund, which are also classified as available-
for-sale, are directly added to or deducted from the decommissioning
reserve. Held-to-maturity securities are carried at cost. All realized
and unrealized gains and losses are determined using the specific
identification method. In accordance with the provisions of this
Statement, the amounts classified as bond, reserve and construction funds
and decommissioning fund on the accompanying Condensed Balance Sheets are
carried at cost as of December 31, 1993.
(C) Oglethorpe's share of the undiscounted cost of decommissioning co-owned
nuclear facilities, assuming decommissioning occurs promptly after the
unit is taken out of service, is estimated at approximately $254 million
for Hatch Unit No. 1, $356 million for Hatch Unit No. 2, $416 million for
Vogtle Unit No. 1 and $543 million for Vogtle Unit No. 2. The years in
which the above plants are expected to begin decommissioning are 2014,
2018, 2027 and 2029, respectively.
The annual provision for decommissioning, which totaled $5.9 million
in 1993, is currently recovered from Members as depreciation expense. In
developing the
7
amount of the annual provision, the escalation rate was assumed to be 4% and
return on trust assets was assumed to be 8%. Oglethorpe's management is of the
opinion that any changes in cost estimates of decommissioning will be fully
recovered in future rates.
Beginning in the years noted above in which the units begin
decommissioning, the expected timing of payments for decommissioning costs
will extend for a period of 9 to 14 years. Oglethorpe's management does
not expect such payments tothat adoption will have an adversea material impact on liquiditythe financial
position or capital
resources.
8results of operations based on the current regulatory structure
in which Oglethorpe operates. See Note 1.m. of Notes to Financial
Statements in Oglethorpe's Annual Report on Form 10-K for the year ending
December 31, 1994 for a summary of Oglethorpe's regulatory assets and
liabilities.
7
ItemITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION
AND RESULTS OF OPERATIONS
RESULTS OF OPERATIONS
FOR THE THREE MONTHS ENDED MARCH 31, 1995
Oglethorpe's net margin for the quarter ended September 30, 1994March 31, 1995 was $4.4$8.5 million as
compared to a net loss of $43,000$20.2 million for the same period of 1993.1994. Historically, most of
Oglethorpe's annual net margin (before cumulative effectwas earned by May 31 of each year. This pattern
of earnings occurred because non-Member revenues declined significantly on June
1 of each year through the change in accounting
for income taxes) for the nine months ended September 30, 1994 was $38.1 million
as compared to $26.7 million for the first nine monthsend of 1993. Net margin was
higher for the 1994 periodssuch year due to unbudgeted savingsscheduled reductions in
interest costs as a
result of the refinancing efforts discussed under "Interest Charges" below.
OPERATING REVENUES
The changes in Member revenues for the three month and nine month periods
ended September 30, 1994 as comparedcapacity sell-back to the same periods of 1993 were the
result of lower energy revenues and increased billings of fixed costs resulting
from the decline in Sell-back revenues from Georgia Power Company (GPC) while monthly fixed costs
recovered from the Member Systems (Members) remained virtually unchanged
throughout the year. (See discussion of non-Member revenues from GPC under
"Operating Revenues" below.) Oglethorpe's capacity revenues from the Members
reflect recovery in nearly equal monthly amounts of all budgeted fixed costs
plus the annual net margin goal, less fixed costs projected to be recovered from
GPC pursuant to plant operating agreements (as discussed below). Oglethorpe implementedagreements. The capacity sell-back arrangement
with GPC will expire on May 31, 1995. The minimal non-Member revenues from GPC
in 1995 has resulted in net margins being earned in a new ratemore even manner
throughout the year as opposed to being earned primarily during the first five
months in January 1994 which has increased revenues to addressprior years. Oglethorpe's budgeted net margin for the Members'
increasing share of fixed costs.
Member energyyear 1995 is
approximately the same level as 1994.
OPERATING REVENUES
Total operating revenues have declined in the first quarter of 1995 compared to
the first quarter of 1994 as a resultdue to the change in the pattern of capacity cost
recovery described above.
Member revenues increased slightly during the flow throughfirst quarter of reduced fuel costs and in addition,1995 compared to
the first quarter of 1994. Energy sales were virtually unchanged for the three month period, due to lower
megawatt-hour (MWh) sales to Members. For the three months ended September 30,
1994, energy revenues from Members declined by 18.4%first
quarter of 1995 compared to the same period of 1993 whereas corresponding MWh sales decreased by only 13%. For the nine
month period ended September 30, 1994, energy revenues were 9.4% lower than in
the prior year despite a 1.0% increase in MWh sales. See "Operating Expenses"
below for a discussion of the reduction in average fuel costs.1994.
Sales to non-Members are primarily made pursuant to three different types of
contractual arrangements with GPC and from energy sales to other non-Member
utilities. The following table summarizes the amounts of non-Member revenues
from these sources for the three monthsfirst quarter of 1995 and nine months ended September 30, 1994
and 1993:1994:
THREE MONTHS ENDED SEPT. 30, NINE MONTHS ENDED SEPT. 30,Three Months Ended March 31,
----------------------------
--------------------------1995 1994
1993 1994 1993
---- ---- ---- ------------ --------
(dollars in thousands)
Plant operating agreements $ 5,557 $19,895 $39,076 $ 86,0705,892 $19,094
Power supply arrangements 4,237 4,715 19,696 35,7987,316 9,237
Transmission agreements 2,771 3,392 8,503 12,7062,995 3,199
Other utilities 9,863 8,006 31,191 20,97513,495 10,630
------- -------
-------- -------
Total $22,428 $36,008 $98,466 $155,549
------- ------- ------- --------
------- ------- ------- --------$29,698 $42,160
======= =======
98
The decreasesdecrease in revenues from non-Members for both comparable periods werein the first quarter of 1995 compared
to the same period of 1994 was primarily attributable to lower revenues from GPC
pursuant to plant operating agreements. Under the plant operating agreements,
GPC purchases capacity and energy from Oglethorpe on a declining scale in the
early years of operation of certain co-owned generating units. The decreasesdecrease in
revenues of this type werewas due to scheduled reductions in sell-back percentages
for both of the Plant Vogtle units and for Plant Scherer Unit No. 2.
The second source of non-Memberunits. Effective June 1, 1995, revenues is derived pursuant to power supply
arrangements with GPC. These revenues are derived, for the most part, from
energy sales arising from dispatch situations whereby GPC causes co-owned
coal-fired generating resources to be operated when Oglethorpe's system does
not require all of its contractual entitlement to the generation. These
revenues essentially represent reimbursement of costs to Oglethorpe since,
under the operating agreements, Oglethorpe is responsible for its share of fuel
costs any time a unit operates. See the discussion under "Operating Expenses"
below of the lower average fuel costs of the coal-fired generating units in
1994. Revenues from sales of this type to GPC were lower for the nine month
period ended September 30, 1994 due to the fact that Oglethorpe retained much
of its share of the output from the Plant Scherer and Wansley units because the
lower average fuel costs made those units more attractive than certain purchased
resources. Pursuant to the amendments to the Plant Scherer ownership and
operating agreements (effective October 1993), OPC elected to separately
dispatch its ownership interest in Plant Scherer beginning May 1, 1994. This
election removed Plant Scherer as a source for energy sales to GPC
pursuant to the power supply arrangements. Accordingly, parts of the decreases in both
comparable periods are due to the Plant Wansley units being the only source for
this type of sale after May 1, 1994.plant operating agreements will end.
Revenues from other non-Member utilities increased substantially due to a 47%55%
increase in MWh sales in the ninethree months ended September 30, 1994 asMarch 1995 compared to the same
period of 1993.1994. Oglethorpe is continuing to pursue energy and capacity sales to
other utilities as a means of reducing amounts that must be recovered from
Members.
OPERATING EXPENSES
The decreasesslight increase in total operating expenses for the three months and nine months
ended September 30, 1994 as compared to the same periods of 1993 werewas primarily attributable to lower energy costs due to greater utilization of owned
generation instead of purchased power resources.
Most of the increases in fuel expenses for both comparable periods were
attributable to substantially greater generation from Plant Scherer Units
No. 1 and 2. Output from these units was approximately 213,000 and 1.7 million
MWh higher, respectively, for the three months and nine months ended
September 30, 1994. Oglethorpe began receiving shipments at Plant Scherer of
lower-priced coal from the mining regions of the western United States in the
last quarter of 1993. Due primarily to the use of this lower-priced coal, the
average fuel cost for the Plant Scherer units decreased by approximately 9%
10
from last year's third quarter and by 10% from the first nine months of 1993.
The average fuel cost for the Plant Wansley units also decreased from 1993
levels, by 9% in the third quarter and by 11% in the first nine months. These
decreases were the result of increased spot purchases of coal.
The significant increase in coal-fired generation (prompted by declining
average fuel costs) as well as declining sales from these coal-fired resources
to GPC pursuant to power supply arrangements (see discussion under "Operating
Revenues" above) have resulted in substantially lower utilization of purchased
power resources. Energy purchases decreased by 41% and 43%, respectively, in
the three months and nine months ended September 30, 1994 as compared to the
same periods of 1993.
Other Income
Other income was higher in 1994 primarily as a result of an
increase in the
amount of deferred margins being amortized. Oglethorpe's Board of Directors
authorizes the amount of deferred margins to be returned to the Members each
year. For 1994, the annual amount being returned is $19.5 million compared
to $4.1 million for 1993. Interest income declined due to lower average cash
balances. (See "Assets" under FINANCIAL CONDITION for a discussion of the
change in cash balances.)
Interest Charges
The decrease in net interest charges resulted from the refinancing efforts
completed in the fourth quarter of 1993 andpurchased power.
Purchased power expenses increased in the first quarter of 1995 primarily as the
result of capacity and energy purchases from Hartwell Energy Limited Partnership
(Hartwell). The agreement to purchase capacity and energy from Hartwell
commenced in April 1994, therefore, there were no corresponding purchases for
the first quarter of 1994. In addition, there was a 7% increase in MWh
purchases in 1995 compared to 1994.
OTHER INCOME
The decrease in other income was due to the completion of amortization in
October 1994 of a gain on the sale of Plant Scherer common facilities. For a
discussion of the refinancing transactions,gain on the sale of Plant Scherer common facilities, see the "Management's Discussion
and AnalysisNote
6 of Notes to Financial Condition and results of Operations"Statements in Oglethorpe's Annual Report on Form 10-K
for the year ending December 31, 1994.
MEMBER CONTRACTS
As stated in the Annual Report on Form 10-K for the fiscal year ended December
31, 1993. As1994, in response to an increasingly competitive utility environment,
Oglethorpe has been discussing the need for a resultmore flexible power supply
arrangement with its Members. The Oglethorpe Board of Directors has authorized
the study of several options which would alter the existing contractual
relationships between Oglethorpe and the Members. Management and the Board of
Directors are continuing to develop these options under which the existing "all-
requirements" wholesale power contract would be changed to allow a Member to
elect to meet its future capacity and energy requirements above current levels
with Member-owned generation or through purchases from Oglethorpe or from other
power suppliers. Management and the Board of Directors also are continuing to
develop specific implementation procedures for the existing bylaw provision that
9
grants a Member the right to withdraw from membership in Oglethorpe upon
satisfying certain conditions. Oglethorpe's refinancing transactions,willingness to consider the average interest rateabove
changes in its power supply arrangements with its Members is predicated on long-term
debt declinedthe
Members' commitment to honor their current financial obligations to Oglethorpe
under their existing wholesale power contracts.
Under the options currently being evaluated, each Member or withdrawing Member
would remain financially responsible for and required to purchase all capacity
and related energy from 8.11% at September 30, 1993Oglethorpe's existing plants, committed projects and
existing power supply contracts based on a fixed percentage allocation. The
methodology for allocating costs of existing and committed resources among the
39 Members was approved by the Oglethorpe Board of Directors on May 8, 1995 for
implementation as early as January 1, 1996.
Since the Members must maintain responsibility for their allocated portions of
all current financial obligations to 7.16% at September 30, 1994.
Allowance for debt funds used during construction continues to increase in
proportionOglethorpe, Oglethorpe's future revenues
associated with the Members' current obligations would be unaffected. However,
to the levelextent the Members choose to secure their projected load growth from
sources other than Oglethorpe, the growth in Oglethorpe's revenues would
decrease as would the related expenses.
The Board of investmentDirectors is expected to address these revisions to the existing
wholesale power contract, withdrawal procedures and other implementation issues
during the next several months; however, any action Oglethorpe's Board of
Directors and the Members might take relating to these options cannot be
predicted at the Rocky Mountain Project, a pumped
storage hydroelectric facility.this time.
FINANCIAL CONDITION
Total assets and total equity and liabilities as of September 30, 1994March 31, 1995 were $5.2$5.3
billion which was $83$75 million less than the total at December 31, 1993.
Assets
The increase in construction work in progress is primarily1994. This
reduction was the result of propertythe payment of interest on long-term debt accrued at
year-end on the first business day of January 1995.
ASSETS
Property additions duringfor the nine-month periodfirst quarter of $62.4 million for Rocky
Mountain Project construction. Oglethorpe is nearing completion of
construction of the Rocky Mountain Project. Based on current arrangements,
Oglethorpe's ultimate ownership interest upon completion is
11
expected to be approximately 75%, with GPC owning the remaining 25%. As of
September 30, 1994, the Rocky Mountain Project was 97% complete, and
Oglethorpe's investment was approximately $4771995 totaled $36 million.
The current schedule
anticipates completion and commercial operation of the three unitsConstruction of the Rocky Mountain Project in early to mid-1995. Construction at(Rocky Mountain), a pumped storage
hydroelectric facility, accounted for $18 million of this amount. Borrowings
under the loan commitment for Rocky Mountain Projecttotaled $59 million in the first
quarter of 1995. Rocky Mountain was approximately 99% complete as of March 31,
1995. The initial unit of Rocky Mountain is currently scheduled for commercial
operation on schedule and under budget.June 1, 1995. All three units of Rocky Mountain are scheduled to
be available for use during peak periods this summer.
The decrease in bond, reserve and construction funds resulted primarily resulted from the
utilization of a portion of the debt service reserve funds for debt service
payments. The available funds resulted from an interest rate swap refinancing
projectsproject which did not require a debt service reserve fund or which required a lower
debt service reserve fund than the refunded bonds.fund.
10
The decrease in cash and temporary cash investments is partlywas primarily due to the
December 31, 19931994 Federal Financing Bank (FFB) interest payment being made as
due on January 3, 19941995 and partly due to premiums paidthe prepayment of two FFB advances in connection with FFB
note modifications and a pollution control bond (PCB) refunding.January
1995. For a discussion of the refinancing transactions, see the "Management's Discussion
and AnalysisNote 5 of Notes to
Financial Condition and Results of Operations"Statements in Oglethorpe's Annual Report on
Form 10-K for the year endedending December 31, 1993.1994.
Other short-term investments represent investments whose maturity periods exceed
Oglethorpe's policy of three months or less for classification as cash
equivalents. There were no corresponding investments in 1994.
The increase in the premium and loss on reacquired debt resulted from premiums
paid in connection with both FFB note modifications and the PCBprepayments, and from a
pollution control bond (PCB) refunding.
Equity and Liabilities
For a discussion of unrealized losses on available-for-sale securities see
Note B of Notes to the Condensed Financial Statements.
Long-term debt due within one year decreased due to normal maturities of
PCBs and mortgage notes payable to the FFB.EQUITY AND LIABILITIES
Deferred margins and Vogtle surcharge to be refunded within one year decreased
by $17.3$6.4 million which is the amount that was refunded to the Members for the
ninefirst three months ended September 30, 1994. See "Other Income" under
RESULTS OF OPERATIONS forof 1995.
Accounts payable declined as of March 31,1995 as a discussionresult of normal variations
in the 1994 amortizationtiming of deferred
margins. For a description of the Vogtle Surcharge, see Note 1 of Notes to
Financial Statements in Oglethorpe's Annual Report on Form 10-K for the year
ended December 31, 1993.payables activity.
Accrued interest decreased as discussed under cash and temporary cash
investments above.
Accrued and withheld taxes increased as a result of the normal monthly accruals
of property taxes, which are generally paid in the lastfourth quarter of the year.
12
Energy costs billed in excess of actuals decreased as a net result of the
refunding to Members of amounts over-collected in 1993 and the realization of
1994actual energy
cost savings compared tocosts exceeding budgeted amounts.
The decrease in othercosts by $1.2 million.
Other current liabilities is partly due to an $11 million
refund to GPCdecreased as a result of an option payment related to the canceled Pickens County Pumped
Storage Hydroelectric Project and partly due to normal timing variations.
Changes in Liquidity
In September 1994, Oglethorpe reassessed its overall liquidity needs and
determined that its commercial paper program (which then authorized the
issuance of up to $355 million) was higher than needed. Under its current
program, Oglethorpe may issue commercial paper not to exceed $300 million
outstanding at any time.
13activity.
11
PART II - OTHER INFORMATION
ITEM 5. OTHER INFORMATION
MEMBER RELATIONS
As stated in its Quarterly ReportNEW OFFICER OF OGLETHORPE
Gary M. Bullock was elected on Form 10-Q forMarch 31, 1995 as the period ended June 30,
1994, Oglethorpe and its Members believe that changes in the industry, along
with the growing diversity of needs of the Members, make it beneficial to
study the feasibility of altering certain aspects of the relationship between
Oglethorpe and its Members.
Cobb EMC, Snapping Shoals EMC, and Walton EMC, three large Membersnew Secretary-Treasurer of
Oglethorpe have initiatedfor a feasibility study of, among other things,
separating from Oglethorpe by acquiring their pro rata shares of Oglethorpe's
assets and either paying or assuming their corresponding portions of
Oglethorpe's debt. Oglethorpe has furnished data to these Members to be used
in their study.
The Oglethorpe Board of Directors recently reviewed several alternatives to the
relationship between Oglethorpe and some or all of the Members, including the
three Members' asset acquisition concept. Oglethorpe's preliminary analysis
indicates a lack of feasibility of the asset acquisition concept. Accordingly,
the Board directed the Oglethorpe staff to limit its study to two other
alternatives. The first is a study of the feasibility of a change in the
current all-requirements Wholesale Power Contracts between Oglethorpe and each
of the Members to allow for some portion of any Member's future capacity and
energy to be supplied from sources other than Oglethorpe, including the use of
dispersed generation. Initial analysis indicates some economics may be
available to Oglethorpe and the Members through a small amount of Member-owned,
Oglethorpe-dispatched dispersed generation. Amendments to the Wholesale Power
Contract to permit this type of generation may, therefore, prove to be
desirable.
The second alternative authorized by the Board to be studied involves the
development of specific implementation procedures for the existing bylaw
provision that grants any Member the right to withdraw from Oglethorpe upon
satisfying certain conditions. These conditions include, but are not limited
to, satisfying or making adequate provisions for the satisfaction of the
Members' obligations under their Wholesale Power Contract. The Board directed
the staff to consider a contract by which a Member could withdraw and freeze
its power purchase obligation at its current pro rata share of existing
plants, committed generating projects and power supply contracts.
The results of Oglethorpe's and any Member's studies and any action Oglethorpe
and the Members might take based thereon cannot be predicted at this time.
However, Oglethorpe's Board of Directors must approve any changes to the current
Wholesale Power Contracts and intends that any new arrangements be structured
so as not to have a material adverse effect on Oglethorpe or the other Members.
The Rural Electrification Administration (REA) must also approve any changes to
these contracts.
14
The three Members who have expressed an interest in considering altering their
relationship with Oglethorpe have stated their commitment to Oglethorpe and REA
to honor their current financial obligations to Oglethorpe under their Wholesale
Power Contracts.
DISPERSED GENERATION
Oglethorpe's Board of Directors has adopted a policy to allow for greater use of
dispersed generation units installed by Oglethorpe's Members. Such policy has
been submitted to REA for approval. If permitted by REA and subject to any
other required approvals, such units could be used to maintain reliability of
electric service during emergencies on a Member's distribution system, to
serve specific customer needs, or by Oglethorpe to serve the demands of
Members on its system. The installation and use of dispersed generation
units by any Member would also be governed by other procedures to be developed
and individual contracts with the Members, giving Oglethorpe control of the
dispersed generation units to meet system requirements and emergencies.
Some of Oglethorpe's Members, including Cobb EMC, Snapping Shoals EMC and
Walton EMC, have installed small diesel generating units. The aggregate
capacity of these units amounts to approximately 1% of Oglethorpe's total
capacity requirements. During the 1994 summer season, some or all of these
units were operated. While it is possible to operate such units in a manner
that violates the existing Wholesale Power Contracts between such Members and
Oglethorpe, the Members involved have assured Oglethorpe that the manner of
operation was not in violation of the Wholesale Power Contract. At
present, Oglethorpe has not been able to make any such determination but has
requested more specific information from these Members in order to make its own
determination as to whether any violation occurred.
Each of the concerned Members has agreed with Oglethorpe that they will not
operate such units in violation of the Wholesale Power Contracts and has agreed
to furnish Oglethorpe with such information as is required for Oglethorpe to
complete its review of the matter. Oglethorpe intends to enforce the Wholesale
Power Contracts. Oglethorpe has advised REA of the situation and intends to
consult with REA as more information is developed. With the exception of
Snapping Shoals EMC, all of the Members involved in this matter remain
REA borrowers.
As discussed above under "Member Relations", Oglethorpe and certain of its
Members continue to study the feasibility of altering certain aspects of their
relationship. The installation and use of generating units such as those
discussed above is likely to be encompassed within any resulting revision to
the relationship.
15
ELECTRIC RATES
As required by the Wholesale Power Contract with each Member, Oglethorpe is
currently engaged in the annual review of its wholesale rates to Members. The
rates have a capacity charge and an energy charge. The capacity charge is a
proportional allocation of fixed costs over the previous year's billing demand
for each Member. The energy charge is the projected energy cost (primarily
fuel) over the projected kilowatt-hour sales for 1995. Oglethorpe is in the
process of developing its 1995 budget and based on current estimates,
management expects a net increase in fixed costs for 1995. Because of this
increase and the weather-related decline in the Members' 1994 peak demand,
Oglethorpe's capacity rate for 1995 is expected to increase. However, because
of increasing energy sales and decreasing fuel costs, management expects average
Member revenues (measured in cents per kilowatt-hour) to remain constant with
1994 levels. Oglethorpe's Board of Directors is scheduled to take action on the
1995 capacity rate at its December meeting. The level of any capacity rate
increase will also depend upon the amounts of credits for deferred margins
elected to be taken by the Members in 1995.
POWER PURCHASE ARRANGEMENTS
Oglethorpe currently purchases 1,250 MW of capacity and associated energy from
GPC under the Block Power Sale Agreement. Because Oglethorpe intends to obtain
more economical alternatives, it has, pursuant to the terms of such Agreement,
given notice of its election to reduce its purchases from GPC by 250 MW
beginning September 1, 1996.one-year term.
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(a) EXHIBITS
NUMBER DESCRIPTIONNumber Description
- --------- -----------
+4.10.4(d) Third Amendment to First Amended and Restated Letter of
Credit Reimbursement Agreement, dated April 15, 1995,
between Oglethorpe and Credit Suisse.
27.1 Financial Data Schedule (for SEC use only).
___________________
+ Pursuant to 17 C.F.R. 229.601(b)(4)(iii), this document is
not filed herewith, however the registrant hereby agrees
that such document will be provided to the Commission upon
request.
(b) REPORTS ON FORMReports on Form 8-K
No reports on Form 8-K were filed by Oglethorpe for the quarter ended
September 30, 1994.
16March 31, 1995.
12
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
Oglethorpe Power Corporation
(An Electric Membership
Generation & Transmission
Corporation)
Date: NOVEMBER 10, 1994 By: /s/ T. D. Kilgore
------------------
T. D. Kilgore
President and Chief Executive Officer
(Principal Executive Officer)
Date: NOVEMBER 10, 1994 /s/ John S. Dean, Sr.
---------------------
John S. Dean, Sr.
Secretary-Treasurer
(Principal Financial Officer)
Date: NOVEMBER 10, 1994 /s/ Eugen Heckl
---------------Date: May 12, 1995 By: /s/ T. D. Kilgore
-------------------------------------
T. D. Kilgore
President and Chief Executive Officer
(Principal Executive Officer)
Date: May 12, 1995 /s/ Gary M. Bullock
-------------------------------------
Gary M. Bullock
Secretary-Treasurer
(Principal Financial Officer)
Date: May 12, 1995 /s/ Eugen Heckl
-------------------------------------
Eugen Heckl
Senior Vice President and Chief
Financial Officer (Principal Financial
Officer)
17
PART I - FINANCIAL INFORMATION
ITEM 1. FINANCIAL STATEMENTS
OGLETHORPE POWER CORPORATION
CONDENSED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
ASSETS
AT AT
SEPTEMBER 30, DECEMBER 31,
1994 1993
------------- ------------
(UNAUDITED)
ELECTRIC PLANT, AT ORIGINAL COST:
IN SERVICE $5,094,390 $5,047,739
LESS ACCUMULATED PROVISION FOR DEPRECIATION (1,205,290) (1,110,296)
------------- ------------
3,889,100 3,937,443
NUCLEAR FUEL, AT AMORTIZED COST 105,447 110,177
PLANT ACQUISITION ADJUSTMENTS, AT AMORTIZED COST 6,540 7,336
CONSTRUCTION WORK IN PROGRESS 521,604 450,965
------------- ------------
4,522,691 4,505,921
INVESTMENTS AND FUNDS:
BOND, RESERVE AND CONSTRUCTION FUNDS, AT MARKET 78,070 110,390
DECOMMISSIONING FUND, AT MARKET 54,803 56,911
INVESTMENT IN ASSOCIATED ORGANIZATIONS, AT COST 17,947 19,123
OTHER 486 486
------------- ------------
151,306 186,910
CURRENT ASSETS:
CASH AND TEMPORARY CASH INVESTMENTS, AT COST 86,654 244,173
RECEIVABLES 90,311 82,274
INVENTORIES, AT AVERAGE COST 90,600 86,468
PREPAYMENTS AND OTHER CURRENT ASSETS 16,261 14,763
------------- ------------
283,826 427,678
DEFERRED CHARGES:
PREMIUM AND LOSS ON REACQUIRED DEBT, BEING AMORTIZED 161,746 91,981
DEFERRED AMORTIZATION OF SCHERER LEASEHOLD 77,989 71,559
DEFERRED DEBT EXPENSE, BEING AMORTIZED 19,038 21,527
DISCONTINUED PROJECT, BEING AMORTIZED 17,257 18,314
OTHER 6,675 --
------------- -----------
282,705 203,381
------------- -----------
$5,240,528 $5,323,890
------------- -----------
------------- -----------
The accompanying notes are an integral part of these condensed statements.
3
OGLETHORPE POWER CORPORATION
CONDENSED BALANCE SHEETS
(DOLLARS IN THOUSANDS)
EQUITY AND LIABILITIES
AT AT
SEPTEMBER 30, DECEMBER 31,
1994 1993
------------- ------------
(UNAUDITED)
CAPITALIZATION:
PATRONAGE CAPITAL AND MEMBERSHIP FEES (NET OF
UNREALIZED LOSSES OF $ 3,129 ON
AVAILABLE-FOR-SALE SECURITIES) $324,933 $289,982
LONG-TERM DEBT 4,088,816 4,058,251
OBLIGATION UNDER CAPITAL LEASES 303,677 303,458
------------ ------------
4,717,426 4,651,691
------------ ------------
CURRENT LIABILITIES:
LONG-TERM DEBT DUE WITHIN ONE YEAR 68,246 78,644
DEFERRED MARGINS AND VOGTLE SURCHARGE TO BE
REFUNDED WITHIN ONE YEAR 4,261 21,577
ACCOUNTS PAYABLE 53,589 62,186
ACCRUED INTEREST 23,161 108,702
ACCRUED AND WITHHELD TAXES 21,400 9,401
ENERGY COSTS BILLED IN EXCESS OF ACTUALS 6,313 11,456
OTHER CURRENT LIABILITIES 11,866 40,234
------------ -----------
188,836 332,200
------------ -----------
DEFFERED CREDITS AND OTHER LIABILITIES:
GAIN ON SALE OF PLANT, BEING AMORTIZED 63,795 65,550
GAIN ON SALE OF SCHERER COMMON FACILITIES,
BEING AMORTIZED - 7,644
SALE OF INCOME TAX BENEFITS, BEING AMORTIZED 60,761 66,838
ACCUMULATED DEFERRED INCOME TAXES 65,510 65,510
DEFERRED MARGINS AND VOGTLE SURCHARGE 26,283 26,283
DECOMMISSIONING RESERVE 94,009 90,476
OTHER 23,908 17,698
----------- -----------
334,266 339,999
----------- -----------
$5,240,528 $5,323,890
----------- -----------
----------- -----------
The accompanying notes are an integral part of these condensed statements.
Certain prior year amounts have been reclassified to conform with current year
presentation.
4
OGLETHORPE POWER CORPORATION
CONDENSED STATEMENTS OF REVENUES & EXPENSES
(DOLLARS IN THOUSANDS)
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------- -----------------------
1994 1993 1994 1993
--------- --------- --------- ---------
OPERATING REVENUES:
SALES TO MEMBERS......... $244,390 $248,729 $699,005 $684,650
SALES TO NON-MEMBERS..... 22,428 36,008 98,466 155,549
--------- --------- --------- ---------
TOTAL OPERATING REVENUES... 266,818 284,737 797,471 840,199
--------- --------- --------- ---------
OPERATING EXPENSES:
FUEL .................... 57,887 56,603 157,719 134,922
PRODUCTION .............. 28,719 27,142 91,774 93,293
PURCHASED POWER.......... 60,905 74,372 172,097 210,440
DEPRECIATION AND
AMORTIZATION........... 32,375 30,945 98,648 95,557
TAXES OTHER THAN INCOME
TAXES ................ 5,920 5,995 17,952 18,071
INCOME TAXES ............ -- 1,820 -- 1,820
OTHER OPERATING EXPENSES. 12,925 11,345 33,609 29,829
--------- --------- --------- ---------
TOTAL OPERATING EXPENSES... 198,731 208,222 571,799 583,932
--------- --------- --------- ---------
OPERATING MARGIN .......... 68,087 76,515 225,672 256,267
--------- --------- --------- ---------
OTHER INCOME (EXPENSE):
INTEREST INCOME ......... 2,842 5,860 7,976 15,306
AMORTIZATION OF DEFERRED
MARGINS................ 4,011 1,033 15,284 3,103
ALLOWANCE FOR EQUITY
FUNDS USED DURING
CONSTRUCTION............ 718 565 2,074 1,532
OTHER.................... 5,157 4,998 16,452 15,911
--------- --------- --------- ---------
TOTAL OTHER INCOME......... 12,728 12,456 41,786 35,852
--------- --------- --------- ---------
INTEREST CHARGES:
INTEREST ON LONG-TERM
OBLIGATIONS............ 85,127 96,391 255,317 285,691
ALLOWANCE FOR DEBT FUNDS
USED DURING
CONSTRUCTION........... (8,698) (7,377) (25,940) (20,299)
--------- --------- --------- ---------
NET INTEREST CHARGES....... 76,429 89,014 229,377 265,392
--------- --------- --------- ---------
MARGIN BEFORE CUMULATIVE
EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE..... 4,386 (43) 38,081 26,727
CUMULATIVE EFFECT OF
CHANGE IN ACCOUNTING
FOR INCOME TAXES......... -- -- -- 13,340
--------- --------- --------- ---------
NET MARGIN (LOSS).......... $ 4,386 $ (43) $ 58,081 $ 40,067
--------- --------- --------- ---------
--------- --------- --------- ---------
The accompanying notes are an integral part of these condensed statements.
5
OGLETHORPE POWER CORPORATION
CONDENSED STATEMENTS OF CASH FLOWS (UNAUDITED)
FOR THE NINE MONTHS ENDED SEPTEMBER 30, 1994 AND 1993
(DOLLARS IN THOUSANDS)
1994 1993
---------- ----------
CASH FLOWS FROM OPERATING ACTIVITIES:
NET MARGIN $ 38,081 $ 40,067
--------- ---------
ADJUSTMENTS TO RECONCILE NET MARGIN TO NET CASH
PROVIDED BY OPERATING ACTIVITIES:
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING FOR
INCOME TAXES -- (13,340)
DEPRECIATION AND AMORTIZATION 141,986 134,797
DEFERRED MARGINS AND AMORTIZATION OF DEFERRED MARGINS (15,284) (3,103)
ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION (2,074) (1,532)
DEFERRED INCOME TAXES -- 1,820
OTHER (14,216) (9,489)
DECREASE (INCREASE) IN NET CURRENT ASSETS, EXCLUDING
LONG-TERM DEBT DUE WITHIN ONE YEAR AND DEFERRED MARGINS
AND VOGTLE SURCHARGE TO BE REFUNDED WITHIN ONE YEAR:
RECEIVABLES (8,037) (8,635)
INVENTORIES (4,132) 4,004
PREPAYMENTS AND OTHER CURRENT ASSETS (1,498) 877
ACCOUNTS PAYABLE (8,597) 3,732
ACCRUED INTEREST (85,541) (24,410)
ACCRUED AND WITHHELD TAXES 11,999 17,925
ENERGY COST BILLED IN EXCESS OF ACTUAL (5,143) (16,194)
OTHER CURRENT LIABILITIES (28,368) (3,426)
---------- ----------
TOTAL ADJUSTMENTS (18,905) 83,026
---------- ----------
NET CASH PROVIDED BY OPERATING ACTIVITIES 19,176 123,093
---------- ----------
CASH FLOWS FROM INVESTING ACTIVITIES:
PROPERTY ADDITIONS (152,136) (170,863)
NET PROCEEDS FROM BOND, RESERVE AND CONSTRUCTION
FUNDS 29,190 34,231
DECREASE IN INVESTMENT IN ASSOCIATED ORGANIZATIONS 1,176 483
DECREASE IN OTHER SHORT-TERM INVESTMENTS -- 66,165
DECREASE (INCREASE) IN DECOMMISSIONING FUND 38 (5,047)
---------- ----------
NET CASH USED IN INVESTING ACTIVITIES (121,732) (75,031)
---------- ----------
CASH FLOWS FROM FINANCING ACTIVITIES:
DEBT PROCEEDS, NET 294,092 35,646
DEBT PAYMENTS (350,233) (132,074)
REFUND OF VOGTLE SURCHARGE (2,031) (1,300)
OTHER 3,209 (4,687)
---------- ----------
NET CASH USED IN FINANCING ACTIVITIES (54,963) (102,415)
---------- ----------
NET DECREASE IN CASH AND TEMPORARY CASH INVESTMENTS (157,519) (54,353)
CASH AND TEMPORARY CASH INVESTMENTS AT BEGINNING OF
PERIOD 244,173 275,624
---------- ----------
CASH AND TEMPORARY CASH INVESTMENTS AT END OF PERIOD $ 86,654 $ 221,271
---------- ----------
CASH PAID FOR:
INTEREST (NET OF AMOUNTS CAPITALIZED) $308,003 $280,314
INCOME TAXES -- (43)
The accompanying notes are an integral part of these condensed statements.
613