UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM U-13-60
ANNUAL REPORT
FOR THE PERIOD
Beginning October 1, 1997 and Ending December 31, 1997
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
STP Nuclear Operating Company
(Exact Name of Reporting Company)
A Subsidiary SERVICE COMPANY
("Mutual" or "Subsidiary")
Date of Incorporation October 1, 1997 If not Incorporated, Date of
Organization.
State or Sovereign Power under which Incorporated or Organized Texas
Location of Principal Executive Offices of Reporting Company
8 Miles Wst Wadsworth Texas on FM 521
Name, title, and address of officer to whom correspondence concerning this
report should be addressed:
J. J. Sheppard Vice President P.O. Box 289 Wadsworth, Texas 77483
Business Systems
(Name) (Title) (Address)
Name of Principal Holding Company Whose Subsidiaries are served by
Reporting Company:
CENTRAL AND SOUTH WEST CORPORATION
<PAGE>
<PAGE>
Page 3
INSTRUCTIONS FOR USE OF FORM U-13-60
1. Time of Filing. --Rule 94 provides that on or before the first day of May in
each calendar year, each mutual service company and each subsidiary service
company as to which the Commission shall have made a favorable finding pursuant
to Rule 88, and every service company whose application for approval or
declaration pursuant to Rule 88 is pending shall file with the Commission an
annual report on Form U-13-60 and in accordance with the Instructions for that
form.
2. Number of Copies. --Each annual report shall be filed in duplicate. The
company should prepare and retain at least one extra copy for itself in case
correspondence with reference to the report becomes necessary.
3. Period Covered by Report. --The first report filed by any company shall
cover the period from the date the Uniform System of Accounts was required to be
made effective as to that company under Rules 82 and 93 to the end of that
calendar year. Subsequent reports should cover a calendar year.
4. Report Format. --Reports shall be submitted on the forms prepared by the
Commission. If the space provided on any sheet of such form is inadequate,
additional sheets may be inserted of the same size as a sheet of the form or
folded to each size.
5. Money Amounts Displayed. --All money amounts required to be shown in
financial statements may be expressed in whole dollars, in thousands of dollars
or in hundred thousands of dollars, as appropriate and subject to provisions of
Regulation S-X (210.3-01(b)).
6. Deficits Displayed. --Deficits and other like entries shall be indicated by
the use of either brackets or a parenthesis with corresponding reference in
footnotes. (Regulation S-X,210.3-01(c))
7. Major Amendments or Corrections. --Any company desiring to amend or correct
a major omission or error in a report after it has been filed with the
Commission shall submit an amended report including only those pages, schedules,
and entries that are to be amended or corrected. A cover letter shall be
submitted requesting the Commission to incorporate the amended report changes
and shall be signed by a duly authorized officer of the company.
8. Definitions. --Definitions contained in Instruction 01-8 to the Uniform
System of Accounts for Mutual Service Companies and Subsidiary Service
Companies, Public Utility Holding Company Act of 1935, as amended February 2,
1979 shall be applicable to words or terms used specifically within this Form
U-13-60.
9. Organization Chart. --The service company shall submit with each annual
report a copy of its current organization chart.
10. Methods of Allocation. --The service company shall submit with each annual
report a listing of the currently effective methods of allocation being used by
the service company and on file with the Securities and Exchange Commission
pursuant to the Public Utility Holding Company Act of 1935.
11. Annual Statement of Compensation for Use of Capital Billed. --The service
company shall submit with each annual report a copy of the annual statement
supplied to each associate company in support of the amount of compensation for
use of capital billed during the calendar year.
<PAGE>
Page 4a
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
Schedule or Page
Description of Schedules and Accounts Account Number Number
Comparative Balance Sheet Schedule I 5, 6
Service Company Property Schedule II 7
Accumulated Provision for Depreciation
and Amortization of Service Company Property Schedule III 8
Investments Schedule IV 9a
Accounts Receivable from Associate Companies Schedule V 9b
Fuel Stock Expenses Undistributed Schedule VI 10
Stores Expense Undistributed Schedule VII 10
Miscellaneous Current and Accrued Assets Schedule VIII 11
Miscellaneous Deferred Debits Schedule IX 11
Research, Development, or Demonstration
Expenditures Schedule X 11
Proprietary Capital Schedule XI 12
Long-Term Debt Schedule XII 13
Current and Accrued Liabilities Schedule XIII 14a
Notes to Financial Statements Schedule XIV 14b
Comparative Income Statement Schedule XV 15
Analysis of Billing - Associate Companies Account 457 16
Analysis of Billing - Non Associate
Companies Account 458 17
Analysis of Charges for Service - Associate
and Non Associate Companies Schedule XVI 18
Schedule of Expense by Department or
Service Function Schedule XVII 19, 20
Departmental Analysis of Salaries Account 920 21a
<PAGE>
Page 4b
Outside Services Employed Account 923 21b
Employee Pensions and Benefits Account 926 22a
General Advertising Expenses Account 930.1 22b
Miscellaneous General Expenses Account 930.2 23
Rents Account 931 23
Taxes Other Than Income Taxes Account 408 24a
Donations Account 426.1 24b
Other Deductions Account 426.5 25a
Notes to Statement of Income Schedule XVIII 25b
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
Organization Chart 26a
Methods of Allocation 26b
Annual Statement of Compensation for
Use of Capital Billed 26c
<PAGE>
Page 5
ANNUAL REPORT OF STP Nuclear Operating Company
SCHEDULE I - COMPARATIVE BALANCE SHEET
(thousands)
Give balance sheet of the Company as of December 31 of the current and prior
year.
ACCOUNT ASSETS AND OTHER DEBITS AS OF AS OF
12/31/97 10/1/97
-------- -------
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) $ -- $ --
107 Construction work in progress (Schedule II) -- --
-------- -------
Total Property -- --
108 Less accumulated provision for depreciation
and amortization of service company
property (Schedule III) -- --
-------- -------
Net Service Company Property -- --
INVESTMENTS
123 Investments in associate companies
(Schedule IV) -- --
124 Other investments (Schedule IV) -- --
-------- -------
Total Investments -- --
CURRENT AND ACCRUED ASSETS
131 Cash -- --
134 Special deposits -- --
135 Working funds -- --
136 Temporary cash investments (Schedule IV) -- --
141 Notes receivable -- --
143 Accounts receivable -- --
144 Accumulated provision of uncollectible
accounts -- --
146 Accounts receivable from associate
companies (Schedule V) 67,987 73,632
152 Fuel stock expenses undistributed
(Schedule VI) -- --
154 Materials and supplies -- --
163 Stores expense undistributed
(Schedule VII) -- --
165 Prepayments -- --
174 Miscellaneous current and accrued assets
(Schedule VIII) -- --
-------- -------
Total Current and Accrued Assets 67,987 73,632
DEFERRED DEBITS
181 Unamortized debt expense -- --
184 Clearing accounts -- --
186 Miscellaneous deferred debits (Schedule IX) -- --
188 Research, development, or demonstration
expenditures (Schedule X) -- --
190 Accumulated deferred income taxes -- --
-------- -------
Total Deferred Debits -- --
-------- -------
TOTAL ASSETS AND OTHER DEBITS $ 67,987 $ 73,632
======== =======
<PAGE>
Page 6
ANNUAL REPORT OF STP Nuclear Operating Company
SCHEDULE I - COMPARATIVE BALANCE SHEET
(thousands)
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF AS OF
12/31/97 10/1/97
-------- -------
PROPRIETARY CAPITAL
201 Common stock issued $ -- $ --
211 Miscellaneous paid-in-capital (Schedule XI) -- --
215 Appropriated retained earnings (Schedule XI) -- --
216 Unappropriated retained earnings
(Schedule XI) -- --
-------- -------
Total Proprietary Capital -- --
LONG-TERM DEBT
223 Advances from associate companies
(Schedule XII) -- --
224 Other long-term debt (Schedule XII) -- --
225 Unamortized premium on long-term debt -- --
226 Unamortized discount on long-term
debt-debit -- --
-------- -------
Total Long-Term Debt -- --
228 OTHER NONCURRENT LIABILITIES 17,792 29,646
-------- -------
CURRENT AND ACCRUED LIABILITIES
228 Other Current Liabilties 1,982 1,939
231 Notes payable -- --
232 Accounts payable 27,655 33,368
233 Notes payable to associate companies
(Schedule XIII) -- --
234 Accounts payable to associate companies
(Schedule XIII) (11) --
236 Tax accrued 1,343 --
237 Interest accrued -- --
238 Dividends declared -- --
241 Tax collections payable -- --
242 Miscellaneous current and accrued
liabilities (Schedule XIII) 15,666 5,802
-------- -------
Total Current and Accrued Liabilities 46,635 41,109
DEFERRED CREDITS
253 Other deferred credits 724 --
255 Accumulated deferred investment tax credits -- --
262 Injuries and Damages - Workers Compensation 2,836 2,877
-------- -------
Total Deferred Credits 3,560 2,877
282 ACCUMULATED DEFERRED INCOME TAXES -- --
-------- -------
-------- -------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL $67,987 $73,632
======== =======
<PAGE>
Page 7
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE II - SERVICE COMPANY PROPERTY
(thousands)
<TABLE>
<CAPTION>
BALANCE AT RETIREMENTS BALANCE
BEGINNING OR OTHER (1) AT CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES CHANGES OF YEAR
<S> <C> <C> <C> <C> <C>
Account 101 - Service
Company Property $-- $-- $-- $-- $--
Account 107 - Construction Work
in Progress -- -- -- -- --
-------------------------------------------------
TOTAL $-- $-- $-- $-- $--
=================================================
</TABLE>
<PAGE>
Page 8
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION
OF SERVICE COMPANY PROPERTY
(thousands)
BALANCE AT RETIREMENTS BALANCE
BEGINNING OR OTHER (1) AT CLOSE
DESCRIPTION OF YEAR ADDITIONS SALES CHANGES OF YEAR
Account 108 - Accumulated
Provision for Depreciation
and Amortization of
Service Company Property $ -- $ -- $ -- $ -- $ --
------------------------------------------------
TOTALS $ -- $ -- $ -- $ -- $ --
================================================
<PAGE>
Page 9a
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE IV - INVESTMENTS
(thousands)
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124 "Other Investments", state each investment separately, with
description, including the name of issuing company, number of shares or
principal amount, etc.
Under Account 136, "Temporary Cash Investments", list each investment
separately.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING OF YEAR CLOSE OF YEAR
Account 123 - Investment in Associate Companies $-- $--
Account 124 - Other Investments -- --
Account 136 - Temporary Cash Investments -- --
-------------------------
TOTAL $-- $--
=========================
<PAGE>
Page 9b
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
(thousands)
INSTRUCTIONS: Complete the following schedule listing accounts receivable from
each associate company. Where the service company has provided accommodation or
convenience payments for associate companies, a separate listing of total
payments for each associate company by sub account should be provided.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING OF YEAR CLOSE OF YEAR
Account 146 - Accounts Receivable
from Associate Companies
Houston Lighting & Power Company $22,694 $20,955
Central Power and Light Company 18,536 17,114
City of San Antonio 20,622 19,042
City of Austin 11,780 10,876
------------------------------
TOTAL $73,632 $67,987
==============================
<PAGE>
Page 10
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
(thousands)
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
fuel stock expenses during the year and indicate amount attributable to each
associate company. Under the section headed "Summary" listed below give an
overall report of the fuel functions performed by the service company.
DESCRIPTION LABOR EXPENSES TOTAL
Account 152 - Fuel Stock
Expenses Undistributed $-- $-- $--
-----------------------------------
TOTAL $-- $-- $--
===================================
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
(thousands)
INSTRUCTIONS: Report the amount of labor and expenses incurred with respect to
stores expense during the year and indicate amount attributable to each
associate company.
DESCRIPTION LABOR EXPENSES TOTAL
Account 163 - Stores Expense
Undistributed
City of Austin $ 110 $ 41 $ 150
Central Power and Light Company $ 173 $ 64 $ 237
Houston Lighting & Power Company $ 211 $ 79 $ 290
City of San Antonio $ 192 $ 71 $ 263
-------------------------------------
TOTAL $685 $255 $ 940
=====================================
Stores expense undistributed is charged to account 163 and billed to associated
companies as incurred.
<PAGE>
Page 11
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE VIII - MISCELLANEOUS CURRENT AND ACCRUED ASSETS
(thousands)
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped, showing the number of items in each group.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING OF YEAR CLOSE OF YEAR
Account 174 - Miscellaneous Current
and Accrued Assets $-- $--
-----------------------------
TOTAL $-- $--
=============================
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
(thousands)
INSTRUCTIONS: Provide detail of items in this account. Items less than $10,000
may be grouped by class, showing the number of items in each class.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING OF YEAR CLOSE OF YEAR
Account 186 - Miscellaneous
Deferred Debits $-- $--
-------------------------------
TOTAL $-- $--
===============================
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE X - RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
(thousands)
INSTRUCTIONS: Provide a description of each material research, development, or
demonstration project which incurred costs by the service corporation during
the year.
DESCRIPTION AMOUNT
Account 188 - Research, Development,
or Demonstration Expenditures $--
------
TOTAL $--
======
<PAGE>
Page 12
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE XI - PROPRIETARY CAPITAL
(dollars in thousands except per share amounts)
<TABLE>
<CAPTION>
NUMBER OF SHARES PAR OR STATED OUTSTANDING CLOSE OF PERIOD
ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED VALUE PER SHARE NO. OF SHARES TOTAL AMOUNT
<S> <C> <C> <C> <C> <C>
Account 201 COMMON STOCK ISSUED -- $-- -- $--
INSTRUCTIONS: Classify amounts in each account with brief explanation,
disclosing the general nature of transactions which give rise to the reported
amounts.
</TABLE>
DESCRIPTION AMOUNT
Account 211 - Miscellaneous Paid-In Capital $--
Account 215 - Appropriate Retained Earnings --
------
TOTAL $--
======
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year,
distinguishing between compensation for the use of capital owned or net loss
remaining from servicing non associates per the General Instructions of the
Uniform System of Accounts. For dividends paid during the year in cash or
otherwise, provide rate percentage, amount of dividend, date declared and date
paid.
BALANCE AT NET INCOME DIVIDENDS BALANCE AT
DESCRIPTION BEGINNING OF YEAR OR (LOSS) PAID CLOSE OF YEAR
Account 216 - Unappropriated
Retained Earnings $-- $-- $-- $--
----------------------------------------------------
TOTAL $-- $-- $-- $--
====================================================
<PAGE>
Page 13
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE XII - LONG-TERM DEBT
(thousands)
INSTRUCTIONS: Advances from associate companies should be reported separately
for advances on notes and advances on open accounts. Names of associate
companies from which advances were received shall be shown under the class and
series of obligation column. For Account 224 - Other long-term debt provide
the name of creditor company or organization, terms of the obligation, date of
maturity, interest rate, and the amount authorized and outstanding.
<TABLE>
<CAPTION>
TERM OF OBLIGATION BALANCE AT BALANCE
CLASS $ SERIES DATE OF INTEREST AMOUNT BEGINNING AT CLOSE
NAME OF CREDITOR OF OBLIGATION MATURITY RATE AUTHORIZED OF YEAR ADDITIONS DEDUCTIONS OF YEAR
<S> <C> <C> <C> <C> <C>
Account 223 - Advances
From Associate Companies: $-- $-- $-- $-- $--
Account 224 - Other
Long-Term Debt: -- -- -- -- --
--------------------------------------------------
TOTAL $-- $-- $-- $-- $--
==================================================
</TABLE>
<PAGE>
Page 14a
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE XIII - CURRENT AND ACCRUED LIABILITIES
(thousands)
INSTRUCTIONS: Provide balance of notes and accounts payable to each associate
company. Give description and amount of miscellaneous current and accrued
liabilities. Items less than $10,000 may be grouped, showing the number of
items in each group.
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
Account 233 - Notes Payable to
Asssociated Companies $-- $--
-------- --------
Total $-- $--
======== ========
Account 234 - Accounts Payable
to Associate Companies
Houston Lighting & Power Company $-- $(11)
-------- --------
Total $-- $(11)
======== ========
Account 242 - Miscellaneous Current
and Accrued Liabilities
Spent Fuel Disposal Fee $-- $4,646
Lower Colorado River Authority Fee (151) --
Benefits Accrual -- 2,738
Executive Incentive Compensation Plan Liability 1,177 1,663
Incentive Compensation Plan Liability 3,618 5,893
Long Term Incentive Compensation Plan Liability 334 --
Nuclear Regulatory Commission Fees 824 726
-------- --------
Total $5,802 $15,666
======== ========
<PAGE>
Page 14b
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE XIV - NOTES TO FINANCIAL STATEMENTS
(thousands)
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish particulars as to any
significant contingent assets or liabilities existing at the end of the year.
Notes relating to financial statements shown elsewhere in this report may be
indicated here by reference.
1. Summary of Significant Accounting Policies
Basis of Accounting and Account Classifications
The accounting records of STP Nuclear Operating Company are maintained on the
accrual basis of accounting, as required by generally accepted accounting
principles. Certain items including, but not limited to, project financing, ad
valorem taxes, depreciation, and decommissioning expensese are not considered in
the records of STP.
The accounting records are also maintained and the accompanying amounts are
classified in accordance with the Participation Agreement and the Federal Energy
Regulatory Commission's "Uniform System of Accounts Prescribed for the Public
Utilities and Licensees" as as adopted by the Public Utility Commission of
Texas.
All costs are reflected at 100% for the project. STP Nuclear Operating Company
has no ownership interests in any of the project assets.
<PAGE>
Page 15
ANNUAL REPORT OF STP Nuclear Operating Company
SCHEDULE XV - COMPARATIVE INCOME STATEMENT
(thousands)
PRIOR
ACCOUNT DESCRIPTION CURRENT YEAR
YEAR (Note 1)
---------- --------
INCOME
457 Services rendered to associate companies $84,059 $--
458 Services rendered to non associate companies -- --
419 Miscellaneous income or loss 23 --
------- -------
TOTAL INCOME 84,082 --
------- -------
EXPENSES
500-557 Power production $67,352 --
560-574 Transmission 147 --
580-598 Distribution -- --
906-917 Customer service & Information -- --
920 Salaries and wages 3,853 --
921 Office supplies and expenses 1,839 --
922 Administrative expense transferred 53 --
923 Outside services employed 2,216 --
924 Property insurance 956 --
925 Injuries and damages 401 --
926 Employee pensions and benefits 4,905 --
928 Regulatory commission expense -- --
930.1 General advertising expenses -- --
930.2 Miscellaneous general expenses 352 --
931 Rents 41 --
932 Maintenance of general plant 706 --
403-405 Depreciation and amortization expense -- --
408 Taxes other than income taxes 1,261 --
409 Income taxes -- --
410 Provision for deferred income taxes -- --
411 Provision for deferred income taxes - credit -- --
417 Administrative - Business Venture -- --
426.1 Donations -- --
426.5 Other deductions -- --
427 Interest on long-term debt -- --
430 Interest on debt to associate companies -- --
431 Other interest expense -- --
------- -------
TOTAL EXPENSE 84,082 --
------- -------
NET INCOME OR (LOSS) $-- $--
======= =======
Note 1: STP Nuclear Operating Company was formed on October 1, 1997, therefore,
prior year information is not applicable.
<PAGE>
Page 16
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
ANALYSIS OF BILLING
ASSOCIATE COMPANIES - ACCOUNT 457
(thousands)
DIRECT INDIRECT COMPENSATION TOTAL
COSTS COSTS FOR USE AMOUNT
NAME OF ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL BILLED
457 - 1 457 - 2 457 - 3
Houston Lighting & Power Company $23,437 $2,468 $-- $25,905
Central Power and Light Company 19,145 2,019 -- 21,164
City of Austin 12,167 1,282 -- 13,449
City of San Antonio 21,298 2,243 -- 23,541
=============================================
TOTAL $76,047 $8,012 $-- $84,059
=============================================
<PAGE>
Page 17
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
ANALYSIS OF BILLING
NON ASSOCIATE COMPANIES - ACCOUNT 458
(thousands)
INSTRUCTION: Provide a brief description of the services rendered to each non
associate company:
<TABLE>
<CAPTION>
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
COST COST FOR USE TOTAL OR AMOUNT
NAME OF NON ASSOCIATE COMPANY CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED
458 - 1 458 - 2 458 - 3 458 - 4
<S> <C> <C> <C> <C> <C> <C>
None $-- $-- $-- $-- $-- $--
---------------------------------------------------------
TOTAL $-- $-- $-- $-- $-- $--
=========================================================
</TABLE>
<PAGE>
Page 18
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE XVI - ANALYSIS OF CHARGES FOR SERVICE - ASSOCIATE AND NON
ASSOCIATE COMPANIES
(thousands)
Instruction: Total cost of service will equal for associate and non-associate
companies the total amount billed under their separate analysis of billing
schedules.
<TABLE>
<CAPTION>
ASSOCIATE COMPANY CHARGES NON ASSOC. COMPANY CHARGES TOTAL CHARGES FOR SERVICE
DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
ACCOUNT DESCRIPTION OF ITEMS COST COST TOTAL COST COST TOTAL COST COST TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
500-559 Power Production $62,706 $4,646 $67,352 $- $- $- $62,706 $4,646 $67,352
560-579 Transmission 147 - 147 - - - 147 - 147
580-599 Distribution - - - - - - - - -
906-917 Customer Accounts, Service,
& Information - - - - - - - - -
920 Salaries and Wages 2,797 1,056 3,853 - - - 2,797 1,056 3,853
921 Office Supplies and Expenses 1,677 162 1,839 - - - 1,677 162 1,839
922 Administrative Expense - 53 53 - - - - 53 53
923 Outside Service Employed 2,092 124 2,216 - - - 2,092 124 2,216
924 Property Insurance 956 - 956 - - - 956 - 956
925 Injuries and Damages 392 9 401 - - - 392 9 401
926 Employee Pensions and Benefits 3,297 1,608 4,905 - - - 3,297 1,608 4,905
930.1 General Advertising Expense - - - - - - - - -
930.2 Miscellaneous General Expense 214 138 352 - - - 214 138 352
931 Rents 41 - 41 - - - 41 - 41
932 Maintenance of General Plant 703 3 706 - - - 703 3 706
403-405 Depreciation and Amortization
Expense - - - - - - - - -
408 Taxes Other than Income Taxes 1,048 213 1,261 - - 1,048 213 1,261
409 Income Taxes - - - - - - - - -
410 Provision for Deferred Income
Taxes - - - - - - - - -
411.5 Provision for Deferred Income
Taxes - Credit - - - - - - - - -
417 Administrative - Business
Venture - - - - - - - - -
419 Interest and Dividend Income (23) - (23) - - - (23) - (23)
426.1 Donations - - - - - - - - -
426.5 Other Deductions - - - - - - - - -
427 Interest On Long-Term Debt - - - - - - - -
431 Other Interest Expense - - - - - - - - -
------------------------------------------------------------------------------------
TOTAL EXPENSES 76,047 8,012 84,059 - - - 76,047 8,012 84,059
------------------------------------------------------------------------------------
Compensation for Use of
Equity Capital - - - - - - - - -
430 Interest On Debt To
Associate Companies - - - - - - - - -
------------------------------------------------------------------------------------
TOTAL COST OF SERVICE $76,047 $8,012 $84,059 $- $- $- $76,047 $8,012 $84,059
====================================================================================
</TABLE>
<PAGE>
Page 19 & 20
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE XVII - SCHEDULE OF EXPENSE BY DEPARTMENT OR SERVICE FUNCTION
(thousands)
Instruction: Indicate each department or service function. (See Instruction
01-3 General Structure of Accounting System: Uniform System of Accounts).
<TABLE>
<CAPTION>
DEPARTMENT OR SERVICE FUNCTION
-----------------------------------------------------------------------------
NUCLEAR
TOTAL OVERHEAD BUSINESS NUCLEAR NUCLEAR LICENSING/ PLANT CORPORATE EXEC VP/GM
ACCOUNT DESCRIPTION OF ITEMS AMOUNT (NOTE 1) SYSTEMS GENERATION ENGINEERING ASSURANCE SERVICES COSTS NUCLEAR
- ------- -------------------- ------ -------- ------- ---------- ----------- --------- -------- ----- -----------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
500-559 Power Production $67,352 $-- $25,501 $20,197 $10,738 $3,175 $4,443 $3,255 43
560-579 Transmission 147 - - - - - - 147
580-599 Distribution -- - - - - - - -
906-917 Customer Service &
Information -- - - - - - - -
920 Salaries and Wages 3,853 - 1,033 165 1 173 1,581 695 205
921 Office Supplies and
Expenses 1,839 - 337 43 5 23 1,096 207 128
922 Administrative Expense 53 - - - - - - 53
923 Outside Service Employed 2,216 - 600 5 - (8) 697 646 276
924 Property Insurance 956 - - - - 956 - -
925 Injuries and Damages 401 - 4 5 - 392 - -
926 Employee Pensions and
Benefits 4,905 - 622 2,378 714 275 714 118 84
930.1 General Advertising
Expense -- - - - - - - -
930.2 Miscellaneous General
Expense 352 - 4 - - 675 - 1 -328
931 Rents 41 - - - - - - 41
932 Maintenance of General
Plant 706 - 2 - - - 697 7
403-405 Depreciation and
Amortization Expense -- - - - - - - -
408 Taxes Other than Income
Taxes 1,261 - 117 675 195 74 184 16
409 Income Taxes -- - - - - - - -
410 Provision for Deferred
Income Taxes -- - - - - - - -
411 Provision for Deferred
Income Taxes - Credit -- - - - - - - -
417 Administrative - Business
Venture -- - - - - - - -
426.1 Donations -- - - - - - - -
426.5 Other Deductions -- - - - - - - -
427 Interest On Long-Term Debt -- - - - - - - -
430 Interest On Debt To
Associate Companies -- - - - - - - -
431 Other Interest Expense -- - - - - - - -
--------------------------------------------------------------------------------------------
$84,082 $-- $28,220 $23,468 $11,653 $5,735 $9,412 $5,170 $424
============================================================================================
Note 1: Overheads are accrued using predetermined loading rates based upon
historical data as well as actuarial information and are subsequently trued up.
</TABLE>
<PAGE>
Page 21a
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
DEPARTMENTAL ANALYSIS OF SALARIES - ACCOUNT 920
(thousands)
DEPARTMENTAL SALARY EXPENSE
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO NUMBER OF
INDICATE EACH DEPARTMENT TOTAL ASSOCIATE OTHER NON PERSONNEL
OR SERVICE FUNCTION AMOUNT COMPANY ASSOCIATES ASSOCIATES END OF YEAR
Executive VP/GM Nuclear $405 $405 $-- $-- 10
Plant Services $3,580 3,580 -- -- 281
Engineering $3,705 3,705 -- -- 237
Nuclear
Assurance/Licensing $1,264 1,264 -- -- 84
Nuclear Generation $11,256 11,256 -- -- 736
Business Systems $2,070 2,070 -- -- 143
Corporate Cost $1,089 1,089 -- -- --
--------------------------------------------------
TOTAL $23,369 $23,369 $-- $-- 1,491
==================================================
These amounts may include charges to accounts throughout the Income Statement
and Balance Sheet. Therefore, they can't be identified in total with any
particular line on Schedule XIV, but are distributed among various lines.
<PAGE>
Page 21b
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
OUTSIDE SERVICES EMPLOYED
(thousands)
INSTRUCTIONS: Provide a breakdown of outside services employed. If the
aggregate amounts paid to any one payee and included within one category is
less than $100,000, only the aggregate number and amount of all such payments
included within the sub account need be shown. Provide a brief description of
the service rendered by each vendor listed.
FROM WHOM PURCHASED SERVICE PROVIDED AMOUNT
Space Network NIS support and service $158
Peoplesoft Software maintenance fees 123
Westinghouse Turbine generator work - Unit 1 428
Westinghouse Turbine generator work - Unit 2 400
Furmanite America Inc. Miscellaneous valve service and leak
repair 505
Westinghouse Nuclear fuel and other anaylsis 175
Sunstates Janitorial service 349
Scientific Ecology Group Low level radioactive waste processing 123
Smith Corrosion, Inc. Miscellaneous work: Repair rubber
lines, emergent work 126
Sunstates Site ground maintenance 185
Westinghouse Integrated Computer System fabrication 607
Chem-Nuclear System Burial of low level radioactive waste 256
Duke Engineering Vendor manual consolidation 221
Eastern Technologies Contaminated laundry trailer 133
Becthel Steam Generator Work 1,556
T Systems Corporation Assist with timekeeping software 341
Bently Nevada Develop and install vibration
monitoring system 698
Westinghouse Steam generator outage support 1,276
Nuclear Energy Services Nozzel dam work 190
Framatone Technology, Inc. 1RE07 outage work 492
Westinghouse Reactor coolant pump work 102
Westinghouse Reactor refueling work 522
Westinghouse Turbine generator outage work 862
Other Vendors Miscellaneaous activites 4,127
--------
Total Outside Services $13,955
========
These amounts summarize all outside services employed and may include charges to
accounts throughout the Income Statement and Balance Sheet. Therefore, they
can't be identified in total with any particular line on Schedule XIV, but
are distributed among various lines.
<PAGE>
Page 22a
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
EMPLOYEE PENSIONS AND BENEFITS - ACCOUNT 926
(thousands)
INSTRUCTIONS: Provide a listing of each pension plan and benefit program
provided by the service company. Such listing should be limited to $25,000.
DESCRIPTION AMOUNT
Pension $598
Savings Plan (1) 716
Welfare Benefits (2) 1,695
Retiree Benefits (FAS106) 1,035
Postemployment Benefits 33
Paid Absences 609
Employee Awards 52
Other 167
-------
TOTAL $4,905
=======
(1) Includes related administrative expense
(2) Includes various types of welfare benefits including Medical, Dental,
Life Insurance, Long-Term Disability, and Accidental Death and
Dismemberment
<PAGE>
Page 22b
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
GENERAL ADVERTISING EXPENSE - ACCOUNT 930.1
(thousands)
INSTRUCTIONS: Provide a listing of the amount included in Account 930.1,
"General Advertising Expenses", classifying the items according to the nature of
the advertising and as defined in the account definition. If a particular class
includes an amount in excess of $3,000 applicable to a single payee, show
separately the name of the payee and the aggregate amount applicable thereto.
DESCRIPTION NAME OF PAYEE AMOUNT
None $--
-------
TOTAL $--
=======
<PAGE>
Page 23
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
MISCELLANEOUS GENERAL EXPENSES - ACCOUNT 930.2
(thousands)
INSTRUCTIONS: Provide a listing of the amount included in Account 930.2,
"Miscellaneous General Expenses" classifying such expenses according to their
nature. Payments and expenses permitted by Section 321 (b)(2) of the Federal
Election Campaign Act, as amended by Public Law 94-283 in 1976
(2 U.S.C. 441 (b)(2)) shall be separately classified.
DESCRIPTION AMOUNT
Company Membership Fees and Dues $263
Research and Development Expense 412
Miscellaneous (323)
------
TOTAL $352
======
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
RENTS - ACCOUNT 931
(thousands)
INSTRUCTIONS: Provide a listing of the amount included in Account 931, "Rents",
classifying such expenses by major groupings of property, as defined in the
account definition of the Uniform System of Accounts.
TYPE OF PROPERTY AMOUNT
Other Rent 41
------
TOTAL $41
======
<PAGE>
Page 24a
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
TAXES OTHER THAN INCOME TAXES - ACCOUNT 408
(thousands)
INSTRUCTIONS: Provide an analysis of Account 408 "Taxes Other Than Income
Taxes". Separate the analysis into two groups: (1) other than U.S. Government
taxes, and (2) U.S. Government taxes. Specify each of the various kinds of
taxes and show the amounts thereof. Provide a subtotal for each class of tax.
DESCRIPTION AMOUNT
Other Than U.S. Government Taxes:
State Unemployment Taxes $34
------
SUBTOTAL 34
------
U.S. Governmental Taxes:
Social Security Taxes 1,207
Federal Unemployment Taxes 20
------
SUBTOTAL 1,227
------
TOTAL $1,261
======
<PAGE>
Page 24b
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
DONATIONS - ACCOUNT 426.1
(thousands)
INSTRUCTIONS: Provide a listing of the amount included in Account 426.1,
"Donations", classifying such expenses by its purpose. The aggregate number and
amount of all items of less than $3,000 may be shown in lieu of details.
NAME OF RECIPIENT PURPOSE OF DONATION AMOUNT
None $ --
------
TOTAL $ --
======
<PAGE>
Page 25a
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
OTHER DEDUCTIONS - ACCOUNT 426.5
(thousands)
INSTRUCTIONS: Provide a listing of the amount included in Account 426.5, "Other
Deductions", classifying such expenses according to their nature.
DESCRIPTION NAME OF PAYEE AMOUNT
None $ --
------
TOTAL $ --
======
<PAGE>
Page 25b
ANNUAL REPORT OF STP Nuclear Operating Company
For the 3 Months Ended December 31, 1997
SCHEDULE XVIII - NOTES TO STATEMENT OF INCOME
(thousands)
INSTRUCTIONS: The space below is provided for important notes regarding the
statement of income or any account thereof. Furnish particulars as to any
significant increase in services rendered or expenses incurred during the year.
Notes relating to financial statements shown elsewhere in this report may be
indicated here by reference.
STP Nuclear Operating Company (STPNOC) was formed October 1, 1997, therefore,
information is presented for the 3 months ended December 31, 1997. In addition,
prior year information is not applicable.
Account 408 - Taxes Other Than Income Taxes
This account does not include capitalized or deferred costs of employees
benefits. Such burdens are classified to the account which contains the
associated labor cost.
Benefits
STPNOC maintains various welfare and retirement plans for its employees.
STPNOC offers welfare plans such as medical, life insurance, and vision
coverage with an employee option to choose among various deductibles,
co-payments and employee preumiums. Retirees, who are age 55, with at least
five years of service after age 50, are eligible for continued medical coverage
and reduced life insurance coverage.
STPNOC provides a savings plan that generally matches 70% of the first six
percent of an employee's salary contributed to the plan. Employee's interest in
STPNOC matching contribution begins to vest after two years of service, and is
fully vested after six years of service.
In addition to the savings plan, STPNOC offers a non-contributory pension plan
to its employees. This plan is a final average pay plan and is based upon the
highest consecutive 36 months base pay out of the final 120 months of service.
This plan pays at a rate of 1.5% per year of service (up to 35 years of
service), plus an additional .44% per year of service by the amount which an
employees final average pay exceeds the Social Security average wage base. An
employee vests in the pension plan after five years of service, and it eligible
for reduced benefits at age 65 (or age 60 with 30 years of service). Reduced
benefits are availalble for retirees who are at least age 55.
<PAGE>
Page 26a
STP NUCLEAR OPERATING COMPANY
President & Chief
Executive Officer
W.T. COTTLE
|
|-------------------L.J. RITTENBERRY
| EXECUTIVE SECRETARY
|
------------------------------------------------------------------
| | | | |
VICE PRESIDENT | VICE PRESIDENT | VICE PRESIDENT
BUSINESS SYSTEMS | NUCLEAR ENGINEERING | NUCLEAR ASSURANCE
J.J. SHEPPARD | T.H. CLONINGER | L.E. MARTIN
| |
| |
VICE PRESIDENT VICE PRESIDENT
NUCLEAR GENERATION PLANT SERVICES
J.F. GROTH F.K. MANGAN
<PAGE>
Page 26b
ANNUAL REPORT OF STP Nuclear Operating Company
METHODS OF ALLOCATION
Central and South West Services, Inc. requested and the Securities and
Exchange Commission granted on September 30, 1997, the following allocation
factors:
1. In accordance with an Owner's ownership percentage,
2. In accordance with an Owner's share of net electric power generation sold
from STP during a specified period of time (measured in kilowatt hours)
expressed as a portion of the total net electric power generation
sold from STP for the same period (measured in net kilowatt hours) and,
3. Under certain circumstances when less than all Owners are involved and no
other method of allocation is practicable, costs may be divided evenly
among those Owners who benefit from the activites for which costs have
been incurred.
<PAGE>
Page 26c
ANNUAL REPORT OF STP Nuclear Operating Company
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
Not Applicable
<PAGE>
Page 27
ANNUAL REPORT OF STP Nuclear Operating Company
SIGNATURE CLAUSE
Pursuant to the requirements of the Public Utility Holding Company Act of
1935 and the rules and regulations of the Securities and Exchange Commission
issued thereunder, the undersigned company has duly caused this report to be
signed on its behalf by the undersigned officer thereunto duly authorized.
STP Nuclear Operating Company
---------------------------------------------------------
(Name of Reporting Company)
By: /s/ J. J. Sheppard
---------------------------------------------------------
(Signature of Signing Officer)
J. J. Sheppard Vice President Business Systems
---------------------------------------------------------
(Printed Name and Title of Signing Officer)
Date: 4/29/98
- --------------
<TABLE> <S> <C>
<ARTICLE> OPUR2
<CIK> 0001047352
<NAME> STP NUCLEAR OPERATING COMPANY
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> YEAR
<FISCAL-YEAR-END> DEC-31-1997
<PERIOD-END> DEC-31-1997
<BOOK-VALUE> PER-BOOK
<NET-SERVICE-COMPANY-PROPERTY> 0
<TOTAL-INVESTMENTS> 0
<TOTAL-CURRENT-ASSETS> 67,987
<TOTAL-DEFERRED-DEBITS> 0
<OTHER-ASSETS-AND-DEBITS> 0
<TOTAL-ASSETS-AND-DEBITS> 67,987
<TOTAL-PROPRIETARY-CAPITAL> 0
<TOTAL-LONG-TERM-DEBT> 0
<NOTES-PAYABLE> 0
<NOTES-PAYABLE-ASSOCIATE-COMP> 0
<OTHER-CURR-AND-ACCRUED-LIAB> 46,635
<TOTAL-DEFERRED-CREDITS> 21,352
<DEFERRED-INCOME-TAX> 0
<TOT-LIABIL-AND-PROPRIET-CAP> 67,987
<SERVICES-ASSOCIATE-COMPANIES> 84,059
<SERVICES-NON-ASSOCIATE-COMP> 0
<MISC-INCOME-OR-LOSS> 23
<TOTAL-INCOME> 84,082
<SALARIES-AND-WAGES> 22,186
<EMPLOYEE-PENSION-AND-BENEFIT> 4,905
<OTHER-EXPENSES> 56,991
<TOTAL-EXPENSES> 84,082
<NET-INCOME> 0
<TOTAL-EXPENSES-DIRECT-COST> 76,047
<TOTAL-EXPENSES-INDIRECT-COST> 8,012
<TOT-EXP-DIRECT-AND-INDIRECT> 84,059
<PERSONNEL-END-OF-YEAR> 1,491
</TABLE>
