| Summary of significant accounting policies: (Policies) | 12 Months Ended |
| Dec. 31, 2014 |
| Summary of significant accounting policies: | |
| Business description | a. Business description |
| Oglethorpe Power Corporation is an electric membership corporation incorporated in 1974 and headquartered in metropolitan Atlanta, Georgia that operates on a not-for-profit basis. We are owned by 38 retail electric distribution cooperative members in Georgia. We provide wholesale electric power from a combination of owned and co-owned generating units of which our ownership share totals 7,063 megawatts of summer planning reserve capacity. We also manage and operate Smarr EMC which owns 718 megawatts of summer planning reserve capacity. Georgia Power Company is a co-owner and the operating agent of our nuclear and coal-fired generating units. Our members in turn distribute energy on a retail basis to approximately 4.2 million people. |
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| Basis of accounting | b. Basis of accounting |
| Our consolidated financial statements include our accounts and the accounts of our majority-owned and controlled subsidiaries. We have determined that there are no accounts of variable interest entities for which we are the primary beneficiary. We have eliminated any intercompany profits and transactions in consolidation. |
| We follow generally accepted accounting principles in the United States. We maintain our accounts in accordance with the Uniform System of Accounts of the Federal Energy Regulatory Commission as modified and adopted by the Rural Utilities Service. We also apply the accounting guidance for regulated operations. |
| The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of December 31, 2014 and 2013 and the reported amounts of revenues and expenses for each of the three years in the period ended December 31, 2014. Actual results could differ from those estimates. |
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| Patronage capital and membership fees | c. Patronage capital and membership fees |
| We are organized and operate as a cooperative. Our members paid a total of $190 in membership fees. Patronage capital includes retained net margin. Any excess of revenue over expenditures from operations is treated as advances of capital by our members and is allocated to each of them on the basis of their fixed percentage capacity cost responsibilities in our generation and purchased power resources. |
| Any distributions of patronage capital are subject to the discretion of our board of directors, subject to first mortgage indenture requirements. Under our first mortgage indenture, we are prohibited from making any distribution of patronage capital to our members if, at the time of or after giving effect to, (i) an event of default exists under the indenture, (ii) our equity as of the end of the immediately preceding fiscal quarter is less than 20% of our total long-term debt and equities, or (iii) the aggregate amount expended for distributions on or after the date on which our equity first reaches 20% of our total long-term debt and equities exceeds 35% of our aggregate net margins earned after such date. This last restriction, however will not apply if, after giving effect to such distribution, our equity as of the end of the immediately preceding fiscal quarter is not less than 30% of our long-term debt and equities. |
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| Accumulated other comprehensive margin (deficit) | d. Accumulated other comprehensive margin (deficit) |
| The table below provides detail regarding the beginning and ending balance for each classification of other comprehensive margin (deficit) along with the amount of any reclassification adjustments included in net margin for each of the years presented in the Statement of Patronage Capital and Membership Fees and Accumulated Other Comprehensive Margin (Deficit). Our effective tax rate is zero; therefore, all amounts below are presented net of tax. |
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| | | | | | | | | | | | | | |
| Accumulated Other Comprehensive Margin (Deficit) | | | | | | | | | | |
| | | (dollars in | | | | | | | | | | |
| thousands) | | | | | | | | | |
| | | Available-for-sale Securities | | | | | | | | | | |
| | | | | | | | | | | | | | |
| Balance at December 31, 2011 | | $ | 618 | | | | | | | | | | |
| Unrealized gain | | | 770 | | | | | | | | | | |
| (Gain) reclassified to net margin | | | (485 | ) | | | | | | | | | |
| | | | | | | | | | | | | | |
| Balance at December 31, 2012 | | | 903 | | | | | | | | | | |
| Unrealized loss | | | (1,396 | ) | | | | | | | | | |
| (Gain) reclassified to net margin | | | (56 | ) | | | | | | | | | |
| | | | | | | | | | | | | | |
| Balance at December 31, 2013 | | | (549 | ) | | | | | | | | | |
| Unrealized gain | | | 1,180 | | | | | | | | | | |
| (Gain) reclassified to net margin | | | (163 | ) | | | | | | | | | |
| | | | | | | | | | | | | | |
| Balance at December 31, 2014 | | $ | 468 | | | | | | | | | | |
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| Margin policy | e. Margin policy |
| We are required under our first mortgage indenture to produce a margins for interest ratio of at least 1.10 for each fiscal year. For the years 2014, 2013 and 2012, we achieved a margins for interest ratio of 1.14. |
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| Operating revenues | f. Operating revenues |
| Electricity revenues are recognized when capacity and energy are provided. Operating revenues from sales to members consist primarily of electricity sales pursuant to long-term wholesale power contracts which we maintain with each of our members. These wholesale power contracts obligate each member to pay us for capacity and energy furnished in accordance with rates we establish. Capacity revenues recover our fixed costs plus a targeted margin and are charged regardless of whether our generation and purchased power resources are dispatched to produce electricity. Capacity revenues are based on an annual budget and, notwithstanding budget adjustments to meet our targeted margin, are recorded equally throughout the year. Energy revenues recover variable costs, such as fuel, incurred to generate or purchase electricity and are recorded such that energy revenues equal the actual energy costs incurred. |
| Operating revenues from sales to non-members consists primarily of capacity and energy sales at Smith. Energy sales accounted for a substantial portion of our sales to non-members in 2014 and all of the sales to non-members in 2013. In 2012, non-member sales were primarily comprised of capacity and energy sales to Georgia Power Company in connection with a power purchase agreement that expired in May 2012, as well as sales to other non-members. |
| The following table reflects members whose revenues accounted for 10% or more of our total operating revenues in 2014, 2013 and 2012: |
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| | | | | | | | | | | | | | |
| | | 2014 | | | 2013 | | | 2012 | | | | |
| | | | | | | | | | | | | | |
| Cobb EMC | | | 13.6 | % | | 13.2 | % | | 12.8 | % | | | |
| Jackson EMC | | | 10.4 | % | | 10.9 | % | | 11.9 | % | | | |
| | | | | | | | | | | | | | |
| (1) None of our other members accounted for 10% or more of our total operating revenues in 2014, 2013 or 2012. | | | |
| We have two rate management programs that allow us to expense and recover certain costs on a current basis that would otherwise be deferred or capitalized. The subscribing members of Smith and/or Vogtle Units No. 3 and No. 4, can elect to participate in one, both or neither of these two programs on an annual basis. The Smith program allows for the accelerated recovery of deferred net costs related to Smith. The Vogtle program allows for the recovery of financing costs associated with the construction of Vogtle Units No. 3 and No. 4 on a current basis. Under these programs, amounts billed to participating members in 2014, 2013 and 2012 were $14,991,000, $13,962,000 and $26,149,000, respectively. |
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| Receivables | g. Receivables |
| A substantial portion of our receivables are related to electricity sales to our members. These receivables are recorded at the invoiced amount and do not bear interest. Our members are required through the wholesale power contracts to reimburse us for all costs. Member receivables at December 31, 2014 and 2013 were $114,808,000 and $117,287,000, respectively. The remainder of our receivables is primarily related to transactions with affiliated companies, electricity sales to non-members and to interest income on investments. Uncollectible amounts, if any, are identified on a specific basis and charged to expense in the period the amounts are determined to be uncollectible. |
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| Nuclear fuel cost | h. Nuclear fuel cost |
| The cost of nuclear fuel, including a provision for the disposal of spent fuel, is being amortized to fuel expense based on usage. The total nuclear fuel expense for 2014, 2013 and 2012 amounted to $85,166,000, $86,828,000, and $81,723,000, respectively. |
| Contracts with the U.S. Department of Energy have been executed to provide for the permanent disposal of spent nuclear fuel produced at Hatch and Vogtle. The Department of Energy failed to begin disposing of spent fuel in January 1998 as required by the contracts, and Georgia Power, as agent for the co-owners of the plants has pursued and continues to pursue legal remedies against the Department of Energy for breach of contract. |
| On April 5, 2012, the U.S. Court of Federal Claims issued a final order for judgment in favor of Georgia Power in a lawsuit seeking damages for spent nuclear fuel storage costs incurred at Plant Hatch and Plant Vogtle Units No. 1 and No. 2 from 1998 through 2004. Our ownership share of the $54,017,000 total award was $16,205,000. The judgment was recorded in June 2012 and resulted in a $9,679,000 reduction in total operating expenses and a $6,526,000 reduction to plant in service. |
| On December 14, 2014, the U.S. Court of Federal Claims issued a judgment in favor of Georgia Power, as agent for the co-owners, to recover spent nuclear fuel storage costs at Hatch and Vogtle Units No. 1 and No. 2 covering the period of January 1, 2005 through December 31, 2010. Our ownership share of the $36,474,000 total award is approximately $10,940,000. No amounts have been recognized in the financial statements as of December 31, 2014 for this claim. |
| On March 4, 2014, Georgia Power, as agent for the co-owners, filed a claim seeking damages for spent nuclear fuel storage costs at Hatch and Vogtle Units No. 1 and No. 2 covering a period of January 1, 2011 through December 31, 2013. Damages will continue to accumulate until the issue is resolved or storage is provided. No amounts have been recognized in the financial statements as of December 31, 2014 for this claim. The final outcome of these matters cannot be determined at this time. |
| Both Plant Hatch and Plant Vogtle have on-site dry spent storage facilities in operation. Facilities at both plants can be expanded to accommodate spent fuel through the expected life of each plant. |
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| Asset retirement obligations and other retirement costs | i. Asset retirement obligations and other retirement costs |
| Asset retirement obligations are legal obligations associated with the retirement of long-lived assets. These obligations represent the present value of the estimated costs for an asset's future retirement and are recorded in the period in which the liability is incurred. The liabilities we have recognized primarily relate to the decommissioning of our nuclear facilities. In addition, we have retirement obligations related to ash ponds, gypsum, landfill sites and asbestos removal. Under the accounting provision for regulated operations, we record a regulatory asset or liability to reflect the difference in timing of recognition of the costs related to nuclear and coal ash related decommissioning for financial statement purposes and for ratemaking purposes. |
| Periodically, we obtain revised asset retirement obligation cost studies associated with our nuclear and fossil plants estimated future decommissioning. Actual decommissioning costs may vary from these estimates because of changes in the assumed date of decommissioning, regulatory requirements, technology, and changes in costs of labor, material and equipment. The estimated costs of nuclear and ash pond decommissioning are based on the most recent studies performed in 2012. See note 1j for additional information regarding nuclear decommissioning cost studies. |
| The following table reflects the details of the Asset Retirement Obligations included in the consolidated balance sheets for the years 2014 and 2013. |
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| | | | | | | | | | | | | | |
| | | (dollars in thousands) | | | | | | | |
| | | 2014 | | | 2013 | | | | | | | |
| | | | | | | | | | | | | | |
| Balance at beginning of year | | $ | 408,050 | | $ | 381,362 | | | | | | | |
| Liabilities settled | | | (406 | ) | | (1,392 | ) | | | | | | |
| Accretion | | | 24,616 | | | 22,900 | | | | | | | |
| Change in Cash Flow Estimates | | | – | | | 5,180 | | | | | | | |
| | | | | | | | | | | | | | |
| Balance at end of year | | $ | 432,260 | | $ | 408,050 | | | | | | | |
| | | | | | | | | | | | | | |
| We have established external trust funds to comply with the Nuclear Regulatory Commission regulations. See note 1j for information regarding the nuclear decommissioning trust fund. |
| Accounting standards for asset retirement and environmental obligations do not apply to retirement costs for which there is no legal obligation to retire the asset, and non-regulated entities are not allowed to accrue for such future retirement costs. We continue to recognize retirement costs for these other obligations in our depreciation rates under the accounting provisions for regulated operations. Accordingly, the accumulated retirement costs for other obligations are reflected as a regulatory liability in our balance sheets. For information regarding accumulated retirement costs for other obligations, see Note 1r. |
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| Nuclear decommissioning | j. Nuclear decommissioning |
| The Nuclear Regulatory Commission (NRC) requires all licensees operating commercial power reactors to establish a plan for providing, with reasonable assurance, funds for decommissioning. We have established external trust funds to comply with the NRC's regulations. Based on current funding and cost study estimates, we expect the current balances and anticipated investment earnings in our external trust funds to be sufficient to meet our future nuclear decommissioning obligations. As such, in 2014 and 2013, no additional amounts were contributed to the external trust funds. The funds set aside for decommissioning are managed by unrelated third party investment managers with the discretion to buy, sell and invest pursuant to investment objectives and restrictions set forth in agreements entered into between us and the investment managers. The funds are invested in a diversified mix of equity and fixed income securities. We record the investment securities held in the nuclear decommissioning trust fund, which are classified as available-for-sale, at fair value, as disclosed in Note 2. Because day-to-day investment decisions are made by third party investment managers, the ability to hold investments in unrealized loss positions is outside our control. |
| In addition to the external trust funds, we maintain unrestricted investments internally designated for nuclear decommissioning. These internal funds will be utilized to fund the external trust funds should additional funding be required. At December 31, 2014 and 2013, we held approximately $59,080,000 and $52,742,000 in long-term investments associated with these internal funds. We collected from our members an additional $2,975,000 for nuclear decommissioning and contributed that amount to the internal funds during 2014. |
| Unrealized gains and losses of the nuclear decommissioning funds that would be recorded in earnings or other comprehensive margin (deficit) by a non-regulated entity are directly deducted from or added to the regulatory asset or liability for asset retirement obligations in accordance with our rate-making treatment. Realized gains and losses on the nuclear decommissioning funds are also recorded to the regulatory asset or liability. |
| Nuclear decommissioning cost estimates are based on site studies and assume prompt dismantlement and removal of both the radiated and non-radiated portions of the plant from service. Actual decommissioning costs may vary from these estimates because of changes in the assumed date of decommissioning, changes in regulatory requirements, changes in technology, and changes in costs of labor, materials and equipment. The estimated costs of decommissioning are based on the most current study performed in 2012. Our portion of the estimated costs of decommissioning co-owned nuclear facilities were as follows: |
| |
| | | | | | | | | | | | | | |
| | | (dollars in thousands) | |
| 2012 site study | | | Hatch | | | Hatch | | | Vogtle | | | Vogtle | |
| Unit No. 1 | Unit No. 2 | Unit No. 1 | Unit No. 2 |
| | | | | | | | | | | | | | |
| Expected start date of decommissioning | | | 2034 | | | 2038 | | | 2047 | | | 2049 | |
| Estimated costs based on site study in 2012 dollars | | $ | 186,000 | | $ | 252,000 | | $ | 182,000 | | $ | 241,000 | |
| | | | | | | | | | | | | | |
| In projecting future costs, the escalation rate for labor, materials and equipment was assumed to be 2.4%. We assume a 6.0% earnings rate for our decommissioning trust fund assets. Since inception in 1990 through 2014, the nuclear decommissioning trust fund has produced an average annualized return of approximately 7.4%. Notwithstanding the results of revised site studies, our management believes that any increase in cost estimates of decommissioning can be recovered in future rates. |
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| Depreciation | k. Depreciation |
| Depreciation is computed on additions when they are placed in service using the composite straight-line method. The depreciation rates for steam and nuclear in the table below reflect revised rates from 2011 depreciation rate studies. Annual depreciation rates, as approved by the Rural Utilities Service, in effect in 2014, 2013 and 2012 were as follows: |
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| | | | | | | | | | | | | | |
| | | Range of | | | 2014 | | | 2013 | | | 2012 | |
| Useful Life in |
| years* |
| | | | | | | | | | | | | | |
| Steam production | | | 49-65 | | | 1.86 | % | | 1.82 | % | | 1.85 | % |
| Nuclear production | | | 37-60 | | | 1.53 | % | | 1.54 | % | | 1.54 | % |
| Hydro production | | | 50 | | | 2.00 | % | | 2.00 | % | | 2.00 | % |
| Other production | | | 27-33 | | | 2.56 | % | | 2.55 | % | | 2.74 | % |
| Transmission | | | 36 | | | 2.75 | % | | 2.75 | % | | 2.75 | % |
| General | | | Mar-50 | | | 2.00-33.33 | % | | 2.00-33.33 | % | | 2.00-33.33 | % |
| | | | | | | | | | | | | | |
| * Calculated based on the composite depreciation rates in effect for 2014. |
| Depreciation expense for the years 2014, 2013 and 2012 was $178,302,000, $171,240,000, and $164,901,000, respectively. |
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| Electric plant | l. Electric plant |
| Electric plant is stated at original cost, which is the cost of the plant when first dedicated to public service, plus the cost of any subsequent additions. Cost includes an allowance for the cost of equity and debt funds used during construction and allocable overheads. For the years ended 2014, 2013 and 2012, the allowance for funds used during construction rates were 4.97%, 4.93% and 5.12%, respectively. |
| Maintenance and repairs of property and replacements and renewals of items determined to be less than units of property are charged to expense. Replacements and renewals of items considered to be units of property are charged to the plant accounts. At the time properties are disposed of, the original cost, plus cost of removal, less salvage of such property, is charged to the accumulated provision for depreciation. |
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| Cash and cash equivalents | m. Cash and cash equivalents |
| We consider all temporary cash investments purchased with an original maturity of three months or less to be cash equivalents. Temporary cash investments with maturities at the time of purchase of more than three months are classified as short-term investments. |
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| Restricted cash and investments | n. Restricted cash and investments |
| At 2014 and 2013, we had restricted cash and investments totaling $365,585,000 and $307,817,000, respectively, of which $118,390,000 and $34,975,000, respectively was classified as long-term. Restricted cash balances consist primarily of funds posted as collateral by counterparties to our interest rate options. Restricted investments represent funds on deposit with the Rural Utilities Service in the Cushion of Credit Account. The restricted investments will be utilized for future Rural Utilities Service Federal Financing Bank debt service payments. The funds on deposit in the Cushion of Credit earn interest at a rate of 5% per annum. |
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| Inventories | o. Inventories |
| We maintain inventories of fossil fuel and spare parts, including materials and supplies for our generation plants. These inventories are stated at weighted average cost on the accompanying balance sheets. |
| The fossil fuel inventories primarily include the direct cost of coal and related transportation charges. The cost of fossil fuel inventories is carried at weighted average cost and is charged to fuel expense as consumed based on weighted average cost. The spare parts inventories primarily include the direct cost of generating plant spare parts. The spare parts inventory is carried at weighted average cost and the parts are charged to expense or capitalized, as appropriate when installed. |
| At 2014 and 2013, fossil fuels inventories were $98,789,000 and $124,359,000, respectively. Inventories for spare parts at 2014 and 2013 were $172,060,000 and $161,809,000, respectively. |
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| Deferred charges and other assets | p. Deferred charges and other assets |
| We account for debt issuance costs as deferred debt expense. Deferred debt expense is amortized to expense on a straight-line basis over the life of the respective debt issues, which approximates the effective interest rate method. As of December 31, 2014, the remaining amortization periods for debt issuance costs range from approximately 1 to 36 years. |
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| Deferred credits and other liabilities | q. Deferred credits and other liabilities |
| We have a power bill prepayment program pursuant to which members can prepay their power bills from us at a discount based on our avoided cost of borrowing. The prepayments are credited against the participating members' power bills in the month(s) agreed upon in advance. The discounts are credited against the power bills and are recorded as a reduction to member revenues. The prepayments are being credited against members' power bills through January 2018, with the majority of the balance scheduled to be credited by the end of 2015. |
| We have recorded a liability for a power sale agreement assumed in conjunction with the Hawk Road acquisition in May 2009. The liability is being amortized over the remaining life of the agreement which ends in 2015. |
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| Regulatory assets and liabilities | r. Regulatory assets and liabilities |
| We apply the accounting guidance for regulated operations. Regulatory assets represent certain costs that are probable of recovery from our members in future revenues through rates under the wholesale power contracts with our members, which extend through December 31, 2050. Regulatory liabilities represent certain items of income that we are retaining and that will be applied in the future to reduce revenues required to be recovered from members. |
| The following regulatory assets and liabilities are reflected on the accompanying balance sheets as of December 31, 2014 and 2013: |
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| | | | | | | | | | | | | | |
| | | (dollars in thousands) | | | | | | | |
| | | 2014 | | | 2013 | | | | | | | |
| | | | | | | | | | | | | | |
| Regulatory Assets: | | | | | | | | | | | | | |
| Premium and loss on reacquired debt(a) | | $ | 71,731 | | $ | 82,499 | | | | | | | |
| Amortization on capital leases(b) | | | 27,829 | | | 16,124 | | | | | | | |
| Outage costs(c) | | | 45,795 | | | 35,155 | | | | | | | |
| Interest rate swap termination fees(d) | | | 9,345 | | | 13,336 | | | | | | | |
| Depreciation expense(e) | | | 46,938 | | | 48,362 | | | | | | | |
| Deferred charges related to Vogtle Units No. 3 and No. 4 training costs(f) | | | 32,501 | | | 27,678 | | | | | | | |
| Interest rate options cost(g) | | | 98,671 | | | 38,984 | | | | | | | |
| Deferral of effects on net margin – Smith Energy Facility(h) | | | 128,666 | | | 63,491 | | | | | | | |
| Other regulatory assets(m) | | | 22,573 | | | 5,479 | | | | | | | |
| | | | | | | | | | | | | | |
| Total Regulatory Assets | | | 484,049 | | | 331,108 | | | | | | | |
| Regulatory Liabilities: | | | | | | | | | | | | | |
| | | | | |
| Accumulated retirement costs for other obligations(i) | | $ | 18,559 | | $ | 24,520 | | | | | | | |
| Deferral of effects on net margin – Hawk Road Energy Facility(h) | | | 29,867 | | | 23,379 | | | | | | | |
| Major maintenance reserve(j) | | | 23,427 | | | 28,064 | | | | | | | |
| Amortization on capital leases(b) | | | 21,693 | | | – | | | | | | | |
| Deferred debt service adder(k) | | | 66,754 | | | 57,223 | | | | | | | |
| Asset retirement obligations(l) | | | 28,870 | | | 19,508 | | | | | | | |
| Other regulatory liabilities(m) | | | 4,903 | | | 6,095 | | | | | | | |
| | | | | | | | | | | | | | |
| Total Regulatory Liabilities | | | 194,073 | | | 158,789 | | | | | | | |
| | | | | | | | | | | | | | |
| Net regulatory assets | | $ | 289,976 | | $ | 172,319 | | | | | | | |
| | | | | | | | | | | | | | |
| (a) Represents premiums paid, together with unamortized transaction costs related to reacquired debt that are being amortized over the lives of the refunding debt, which range up to 30 years. | | | | | | |
| (b) Represents the difference between lease payments and the aggregate of the amortization on the capital lease assets and the interest on the capital lease obligations for rate-making purposes. | | | | | | |
| (c) Consists of both coal-fired maintenance and nuclear refueling outage costs. Coal-fired outage costs are amortized on a straight-line basis to expense over an 18 to 36-month period. Nuclear refueling outage costs are amortized on a straight-line basis to expense over the 18 to 24-month operating cycles of each unit. | | | | | | |
| (d) Represents losses on settled interest rate swap arrangements that are being amortized through 2016 and 2019. | | | | | | |
| (e) Prior to Nuclear Regulatory Commission (NRC) approval of a 20-year license extension for Plant Vogtle, we deferred the difference between Plant Vogtle depreciation expense based on the then 40-year operating license and depreciation expense assuming an expected 20-year license extension. Amortization commenced upon NRC approval of the license extension in 2009 and is being amortized over the remaining life of the plant. | | | | | | |
| (f) Deferred charges related to Vogtle Units No. 3 and No. 4 training and interest related carrying costs of such training. Amortization will commence effective with the commercial operation date of each unit and amortized to expense over the life of the units. | | | | | | |
| (g) Deferral of net loss associated with the change in fair value and expired cost of interest rate options purchased to hedge interest rates on certain borrowings related to Vogtle Units No.3 and No.4 construction. Amortization will commence in February 2020 and will be amortized through February 2044, the life of the DOE-guaranteed loan which is financing a portion of the construction project. | | | | | | |
| (h) Effects on net margin for Smith and Hawk Road Energy Facilities are deferred until the end of 2015 and will be amortized over the remaining life of each respective plant. | | | | | | |
| (i) Represents difference in timing of recognition of retirement costs associated with long-lived assets in which there are no legal obligations to retire for financial statement purposes and for ratemaking purposes. | | | | | | |
| (j) Represents collections for future major maintenance costs; revenues are recognized as major maintenance costs are incurred. | | | | | | |
| (k) Represents collections to fund certain debt payments to be made through the end of 2025 which will be in excess of amounts collected through depreciation expense; the deferred credits will be amortized over the remaining useful life of the plants. | | | | | | |
| (l) Represents difference in timing of recognition of the costs of decommissioning for financial statement purposes and for ratemaking purposes. | | | | | | |
| (m) The amortization period for other regulatory assets range up to 35 years and the amortization period of other regulatory liabilities range up to 18 years. | | | | | | |
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| Related parties | s. Related parties |
| We and our 38 members are members of Georgia Transmission. Georgia Transmission provides transmission services to its members for delivery of its members' power purchases from us and other power suppliers. We have entered into an agreement with Georgia Transmission to provide transmission services for third party transactions and for service to our own facilities. For 2014, 2013, and 2012, we incurred expenses from Georgia Transmission of $27,893,000, $27,599,000, and $26,035,000, respectively. |
| We, Georgia Transmission and 37 of our members are members of Georgia Systems Operations. Georgia Systems Operations operates the system control center and currently provides us system operations services and administrative support services. For 2014, 2013, and 2012, we incurred expenses from Georgia Systems Operations of $23,351,000, $20,354,000, and $18,870,000, respectively. |
|
| Other income | t. Other income |
| The components of other income within the Consolidated Statement of Revenues and Expenses were as follows: |
| |
| | | | | | | | | | | | | | |
| | | (dollars in thousands) | | | | |
| | | 2014 | | | 2013 | | | 2012 | | | | |
| | | | | | | | | | | | | | |
| Capital credits from associated companies (Note 4) | | $ | 1,986 | | $ | 1,954 | | $ | 1,919 | | | | |
| Net revenue from Georgia Transmission and Georgia System Operations for shared Administrative and General costs | | | 4,944 | | | 4,459 | | | 4,280 | | | | |
| Miscellaneous other | | | (310 | ) | | (723 | ) | | 214 | | | | |
| | | | | | | | | | | | | | |
| Total | | $ | 6,620 | | $ | 5,690 | | $ | 6,413 | | | | |
| | | | | | | | | | | | | | |
|
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| New accounting pronouncements | u. New accounting pronouncements |
| In May 2014, the Financial Accounting Standards Board (FASB) issued "Revenue from Contracts with Customers" (Topic 606). The new revenue standard requires that an entity recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. The standard is effective for the annual reporting period beginning after December 15, 2016 and early adoption is not permitted. We are currently evaluating the future impact of this standard to our consolidated financial position or results of operations. |
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