Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1993 and Ending December 31, 1993
TO THE
U.S. SECURITIES AND EXCHANGE COMMISSION
OF
Southern Nuclear Operating Company, Inc.
(Exact Name of Reporting Company)
A Subsidiary Service Company
("Mutual or "Subsidiary")
Date of Incorporation December 17, 1990
If not Incorporated, Date of Organization
State or Sovereign Power under which Incorporated
or Organized Delaware
Building 40
Location of Principal Executive Office Inverness Center Parkway
of Reporting Company Birmingham, Alabama 35242
Name, title, and address of officer to whom
correspondence concerning this report should be addressed:
Building 40
Inverness Center Parkway
R. M. Gilbert, Jr. Comptroller and Treasurer Birmingham, Alabama 35242
(Name) (Title) (Address)
Name of Principal Holding Company
Whose Subsidiaries are served by Reporting Company:
The Southern Company<PAGE>
1
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 such 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
Regulations 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
(Regulations 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.<PAGE>
1A
INSTRUCTIONS FOR USE OF FORM U-13-60 (cont.)
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>
2
<TABLE>
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
_____________________________________________________________________________
Schedule or
Account Page
Description of Schedules and Accounts Number Number
_____________________________________________________________________________
<S> <C> <C>
COMPARATIVE BALANCE SHEET Schedule I 4-5
SERVICE COMPANY PROPERTY Schedule II 6-7
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY Schedule III 8
INVESTMENTS Schedule IV 9
ACCOUNTS RECEIVABLE FROM ASSOCIATE
COMPANIES Schedule V 10
FUEL STOCK EXPENSES UNDISTRIBUTED Schedule VI 11
STORES EXPENSE UNDISTRIBUTED Schedule VII 12
MISCELLANEOUS CURRENT AND ACCRUED ASSETS Schedule VIII 13
MISCELLANEOUS DEFERRED DEBITS Schedule IX 14
RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES Schedule X 15
PROPRIETARY CAPITAL Schedule XI 16
LONG-TERM DEBT Schedule XII 17
CURRENT AND ACCRUED LIABILITIES Schedule XIII 18
NOTES TO FINANCIAL STATEMENTS Schedule XIV 19
COMPARATIVE INCOME STATEMENT Schedule XV 20
ANALYSIS OF BILLING - ASSOCIATE COMPANIES Account 457 21
ANALYSIS OF BILLING - NONASSOCIATE
COMPANIES Account 458 22
ANALYSIS OF CHARGES FOR SERVICE -
ASSOCIATE AND NONASSOCIATE COMPANIES Schedule XVI 23
SCHEDULE OF EXPENSE BY DEPARTMENT OR
SERVICE FUNCTION Schedule XVII 24-25
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 26
OUTSIDE SERVICES EMPLOYED Account 923 27
EMPLOYEE PENSIONS AND BENEFITS Account 926 28
GENERAL ADVERTISING EXPENSES Account 930.1 29
MISCELLANEOUS GENERAL EXPENSES Account 930.2 30
RENTS Account 931 31
TAXES OTHER THAN INCOME TAXES Account 408 32
DONATIONS Account 426.1 33
OTHER DEDUCTIONS Account 426.5 34
_____________________________________________________________________________
/TABLE
<PAGE>
3
<TABLE>
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
_____________________________________________________________________________
Schedule Page
Description of Schedules and Accounts Number Number
_____________________________________________________________________________
<S> <C> <C>
NOTES TO STATEMENT OF INCOME Schedule 35
XVIII
ORGANIZATION CHART 36
METHODS OF ALLOCATION 37
ANNUAL STATEMENT OF COMPENSATION FOR USE
OF CAPITAL BILLED 38
_____________________________________________________________________________
/TABLE
<PAGE>
4
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE I - COMPARATIVE BALANCE SHEET
Give balance sheet of the Company as of December 31 of the current and prior
year.
_____________________________________________________________________________
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31
CURRENT PRIOR
_____________________________________________________________________________
<C> <S> <C> <C>
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) 12,514 12,304
107 Construction work in progress (Schedule II) - -
Total Property 12,514 12,304
108 Less accumulated provision for depreciation
and amortization for service company
property (Schedule III) 7,062 6,442
Net Service Company Property 5,452 5,862
INVESTMENTS
123 Investments in associates companies - -
(Schedule IV)
124 Other investments (Schedule IV) 1,895 1,797
total Investments 1,895 1,797
CURRENT AND ACCRUED ASSETS
131 Cash 108 335
134 Special deposits 12 15
135 Working funds 50 38
136 Temporary cash investments (Schedule IV) 5,200 2,800
141 Notes receivable - -
143 Accounts receivable 12 43
144 Accumulated provision for uncollectible
accounts - -
146 Accounts receivable from associate
companies (Schedule V) 58,115 53,211
152 Fuel stock expenses undistributed
(Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 850 1,990
174 Miscellaneous current and accrued
assets (Schedule VIII) 1 -
Total Current and Accrued Assets 64,348 58,432
DEFERRED DEBITS
181 Unamortized debt expense - -
184 Clearing accounts - -
186 Miscellaneous deferred debits (Schedule IX) 167 267
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 20,177 17,249
Total Deferred Debits 20,344 17,516
TOTAL ASSETS AND OTHER DEBITS 92,039 83,607
_____________________________________________________________________________
</TABLE> <PAGE>
5
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE I - COMPARATIVE BALANCE SHEET
_____________________________________________________________________________
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
CURRENT PRIOR
_____________________________________________________________________________
<C> <S> <C> <C>
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) 10 10
211 Miscellaneous paid-in-capital
(Schedule XI) 1,522 1,420
215 Appropriated retained earnings
(Schedule XI) - -
216 Unappropriated retained earnings
(Schedule XI) - -
Total Proprietary Capital 1,532 1,430
LONG-TERM DEBT
223 Advances from associate companies
(Schedule XII) 5,000 5,000
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 5,000 5,000
CURRENT AND ACCRUED LIABILITIES
231 Notes payable - -
232 Accounts payable 5,936 5,016
233 Notes payable to associate companies
(Schedule XIII) - -
234 Accounts payable to associate companies
(Schedule XIII) 20,386 20,646
236 Taxes accrued 441 89
237 Interest accrued 43 -
238 Dividends declared - -
241 Tax collections payable 225 273
242 Miscellaneous current and accrued liabilities
(Schedule XIII) 57,805 50,420
Total Current and Accrued
Liabilities 84,836 76,444
DEFERRED CREDITS
253 Other deferred credits 323 709
255 Accumulated deferred investment tax credits - -
Total Deferred Credits 323 709
282 ACCUMULATED DEFERRED INCOME TAXES 348 24
TOTAL LIABILITIES AND PROPRIETARY
CAPITAL 92,039 83,607
_____________________________________________________________________________
</TABLE> <PAGE>
6
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE II - SERVICE COMPANY PROPERTY
_____________________________________________________________________________
BALANCE AT RETIREMENTS OTHER BALANCE
BEGINNING ADDITIONS OR CHANGES AT
DESCRIPTION OF YEAR SALES 1/ CLOSE OF
YEAR
_____________________________________________________________________________
SERVICE COMPANY PROPERTY
Account
<C> <S> <C> <C> <C> <C> <C>
301 ORGANIZATION 148 (49) - - 99
303 MISCELLANEOUS
INTANGIBLE
PLANT - - - - -
304 LAND & LAND
RIGHTS - - - - -
305 STRUCTURES AND
IMPROVEMENTS - - - - -
306 LEASEHOLD
IMPROVEMENTS 1,539 - - - 1,539
307 EQUIPMENT 2/ 5,085 1,009 937 (33) 5,124
308 OFFICE
FURNITURE AND
EQUIPMENT 2/ 4,836 121 163 3 4,797
309 AUTOMOBILES,
OTHER
VEHICLES, AND
RELATED GARAGE
EQUIPMENT - - - - -
310 AIRCRAFT AND
AIRPORT
EQUIPMENT - - - - -
311 OTHER SERVICE
COMPANY
PROPERTY 3/ 696 259 - - 955
SUB-TOTAL 12,304 1,340 1,100 (30) 12,514
107 CONSTRUCTION
WORK IN
PROGRESS - - - - -
TOTAL 12,304 1,340 1,100 (30) 12,514
() Denotes red figure
_____________________________________________________________________________
/TABLE
<PAGE>
7
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE II - CONTINUED
_____________________________________________________________________________
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
No changes were considered material.
_____________________________________________________________________________
2/ SUBACCOUNTS ARE REQUIRED FOR EACH CLASS OF EQUIPMENT OWNED. THE SERVICE
COMPANY SHALL PROVIDE A LISTING BY SUBACCOUNT OF EQUIPMENT ADDITIONS
DURING THE YEAR AND THE BALANCE AT THE CLOSE OF THE YEAR:
BALANCE
SUBACCOUNT DESCRIPTION ADDITIONS AT
CLOSE OF
YEAR
_____________________________________________________________________________
<S> <C> <C>
EQUIPMENT
Personal Computer Equipment 966 4,753
Mainframe Computer Equipment - 216
Office Automation Equipment - 10
Telecommunication Equipment 43 145
1,009 5,124
OFFICE FURNITURE AND EQUIPMENT
Office Furniture and Equipment 47 2,800
Miscellaneous Equipment 74 1,997
121 4,797
_____________________________________________________________________________
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
Purchased computer software and licenses.
_____________________________________________________________________________
/TABLE
<PAGE>
8
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
_____________________________________________________________________________
BALANCE AT ADDITIONS OTHER BALANCE AT
BEGINNING CHARGED TO RETIREMENTS CHANGES CLOSE OF
DESCRIPTION OF YEAR ACCOUNT ADD YEAR
403 (DEDUCT)
1/
_____________________________________________________________________________
Account
<C> <S> <C> <C> <C> <C> <C>
301 ORGANIZATION - - - - -
303 MISCELLANEOUS
INTANGIBLE PLANT - - - - -
304 LAND AND LAND
RIGHTS - - - - -
305 STRUCTURES AND
IMPROVEMENTS - - - - -
306 LEASEHOLD
IMPROVEMENTS 1,539 - - - 1,539
307 EQUIPMENT 2,337 950 823 - 2,464
308 OFFICE
FURNITURE AND
EQUIPMENT 2,434 496 136 2 2,796
309 AUTOMOBILES,
OTHER
VEHICLES, AND
RELATED
GARAGE
EQUIPMENT - - - - -
310 AIRCRAFT AND
AIRPORT
EQUIPMENT - - - - -
311 OTHER SERVICE
COMPANY
PROPERTY 132 131 - - 263
TOTAL 6,442 1,577 959 2 7,062
_____________________________________________________________________________
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NONE
_____________________________________________________________________________
/TABLE
<PAGE>
9
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE IV - INVESTMENTS
_____________________________________________________________________________
INSTRUCTIONS: Complete the following schedule concerning investments.
Under Account 124, "Other Investments", state each investment
separately, with description, including the name of the
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 CLOSE
OF YEAR OF YEAR
_____________________________________________________________________________
<S> <C> <C>
ACCOUNT 123 - INVESTMENT IN ASSOCIATE
COMPANIES - -
ACCOUNT 124 - OTHER INVESTMENTS
Miscellaneous Employee Loans - 7
Employee Energy Loans
(Empl/Retiree) 1,494 1,562
Employee Computer Loans 303 326
1,797 1,895
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
Eurodollar Time Deposit 2,800 5,200
TOTAL 4,597 7,095
_____________________________________________________________________________
/TABLE
<PAGE>
10
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE V - ACCOUNTS RECEIVABLE FROM ASSOCIATE COMPANIES
_____________________________________________________________________________
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 should be provided.
_____________________________________________________________________________
BALANCE AT BALANCE AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
_____________________________________________________________________________
<S> <C> <C>
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM
ASSOCIATE COMPANIES
Southern Company Services, Inc. 6,367 6,137
Alabama Power Company 34,429 38,308
Georgia Power Company 12,415 13,659
Southern Electric International - 11
TOTAL 53,211 58,115
_____________________________________________________________________________
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL
PAYMENTS
TOTAL PAYMENTS -
_____________________________________________________________________________
/TABLE
<PAGE>
11
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE VI - FUEL STOCK EXPENSES UNDISTRIBUTED
_____________________________________________________________________________
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
_____________________________________________________________________________
<S> <C> <C> <C>
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED - - -
NOT APPLICABLE
_____________________________________________________________________________
SUMMARY:
NOT APPLICABLE
_____________________________________________________________________________
/TABLE
<PAGE>
12
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE VII - STORES EXPENSE UNDISTRIBUTED
_____________________________________________________________________________
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
_____________________________________________________________________________
<S> <C> <C> <C>
ACCOUNT 163 - STORES EXPENSE
UNDISTRIBUTED 2,894 438 3,332
Total amount billed during current
year as follows:
Associate Companies
Alabama Power Company (784) (122) (906)
Georgia Power Company (2,110) (316) (2,426)
(2,894) (438) (3,332)
TOTAL - - -
( ) Denotes red figure
_____________________________________________________________________________
/TABLE
<PAGE>
13
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE VIII
MISCELLANEOUS CURRENT AND ACCRUED ASSETS
_____________________________________________________________________________
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 CLOSE
OF YEAR OF YEAR
_____________________________________________________________________________
<S> <C> <C>
ACCOUNT 174 - MISCELLANEOUS CURRENT AND
ACCRUED ASSETS
Interest Earned on Temporary Cash
Investments (1 Item) 1 -
TOTAL 1 -
_____________________________________________________________________________
/TABLE
<PAGE>
14
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE IX - MISCELLANEOUS DEFERRED DEBITS
_____________________________________________________________________________
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 CLOSE
OF YEAR OF YEAR
_____________________________________________________________________________
<S> <C> <C>
ACCOUNT 186 - MISCELLANEOUS DEFERRED
DEBITS
Billings from Alabama Power Company 34 -
Undistributed Labor Accrual and
Reversal 212 167
Employee Specialty Items 13 -
Miscellaneous (2) 8 -
Total 267 167
_____________________________________________________________________________
/TABLE
<PAGE>
15
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE X - RESEARCH, DEVELOPMENT OR DEMONSTRATION EXPENDITURES
_____________________________________________________________________________
INSTRUCTIONS: Provide a description of each material research, development,
or demonstration project which incurred costs by the service
corporation during the year.
_____________________________________________________________________________
DESCRIPTION AMOUNT
_____________________________________________________________________________
<S> <C>
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES -
NOT APPLICABLE
_____________________________________________________________________________
</TABLE> <PAGE>
<TABLE>
16
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
SCHEDULE XI - PROPRIETARY CAPITAL
NUMBER OF PAR OR STATED OUTSTANDING CLOSE OF PERIOD
SHARES VALUE
ACCOUNT NUMBER CLASS OF STOCK AUTHORIZED PER SHARE NO. OF SHARES TOTAL AMOUNT
<C> <S> <C> <C> <C> <C>
201 COMMON STOCK ISSUED 1,000 10 1,000 10
INSTRUCTIONS: Classify amounts in each account with brief explanation, disclosing the general nature of
transactions which gave rise to the reported amounts.
____________________________________________________________________________________________________________________
DESCRIPTION AMOUNT
____________________________________________________________________________________________________________________
ACCOUNT 211 - MISCELLANEOUS PAID-IN CAPITAL
Amount Paid in for Common Stock in Excess of Par Value 990
Other Paid-In Capital 532
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS -
TOTAL 1,522
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year, distinguishing between
compensation for the use of capital owed or net loss remaining from servicing nonassociates 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 BALANCE AT
DESCRIPTION BEGINNING OR DIVIDENDS CLOSE
OF YEAR (LOSS) PAID OF YEAR
ACCOUNT 216 - UNAPPROPRIATED
RETAINED EARNINGS - - - -
TOTAL - - - -
</TABLE> <PAGE>
<TABLE>
17
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
SCHEDULE XII - LONG-TERM DEBT
INSTRUCTIONS: Advances from associate companies should be reported separately for advances on notes, and advances
on open account. 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.
TERMS OF DATE BALANCE AT 1/ BALANCE
NAME OF CREDITOR OBLIG OF INTEREST AMOUNT BEGINNING OF ADDITIONS DEDUCTIONS AT
CLASS & MATURITY RATE AUTHORIZED OF YEAR CLOSE
SERIES OF YEAR
OF OBLIGATION
<S> <C> <C> <C> <C> <C> <C> <C>
ACCOUNT 223 - ADVANCES FROM
ASSOCIATE COMPANIES:
ADVANCES ON NOTES:
On or
before
The Southern Company 12/31/2000 Variable 10,000 5,000 - - 5,000
ADVANCES ON OPEN ACCOUNT: - - - - -
ACCOUNT 224 - OTHER LONG-TERM
DEBT: - - - - -
TOTAL 10,000 5,000 - - 5,000
____________________________________________________________________________________________________________________
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
NONE
____________________________________________________________________________________________________________________
/TABLE
<PAGE>
18
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE XIII-CURRENT AND ACCRUED LIABILITIES
_____________________________________________________________________________
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 BALANCE
AT AT
DESCRIPTION BEGINNING CLOSE
OF YEAR OF YEAR
_____________________________________________________________________________
<S> <C> <C>
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES - -
TOTAL - -
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Alabama Power Company 8,838 8,899
Georgia Power Company 4,102 4,413
Southern Company Services, Inc. 7,706 7,074
TOTAL 20,646 20,386
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
Accrual for Pensions 28,555 33,259
Accumulated Provision for Pensions and Benefits-Post-
Retirement Life Insurance 3,663 4,414
Accumulated Provision for Pensions and Benefits-Post-
Retirement Medical Insurance 5,545 8,002
Accumulated Provision for Pensions and Benefits-
Supplemental and Special 57 68
Employee Stock Option Plan Contribution 439 453
Vacation Pay Accrual 4,883 5,082
Performance Pay Plan Accrual 6,767 6,174
Productivity Improvement Plan Accrual 439 277
Workmen's Compensation Awards 36 29
Employee Subscriptions-U.S. Savings Bonds 15 12
Accumulated Provision for Supplemental Benefits-
ESP/ESOP 11 5
Employee Savings Plan-Loan Payments 10 0
Accumulated Provision for Post Employment Benefits-
Medical 0 30
TOTAL 50,420 57,805
_____________________________________________________________________________
</TABLE> <PAGE>
19
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
_____________________________________________________________________________
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
_____________________________________________________________________________
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
General
On December 14, 1990, pursuant to the provisions of the Public Utilities
Holding Company Act of 1935, the Securities and Exchange Commission
("SEC") approved the formation of the Southern Nuclear Operating Company,
Inc. (the "Company"), a wholly owned subsidiary of The Southern Company
("Southern"), to provide services in connection with the Southern electric
system's nuclear power plants. The Company was incorporated on December
17, 1990 and commenced operations on January 1, 1991.
The Company follows the SEC's Uniform System of Accounts for Mutual
Service Companies and Subsidiary Service Companies.
The Company has no earnings or retained earnings since it renders services
to its client companies' nuclear power plants at cost, as further
discussed in Note 4.
The Nuclear Regulatory Commission ("NRC") license for Alabama Power
Company's Plant Farley was amended to add the Company as plant operator,
and effective December 23, 1991, the Company assumed responsibility for
such operations pursuant to an operating agreement with Alabama Power
Company. The Company currently has a filing pending with the NRC
concerning an amendment of the licenses to add the Company as the operator
of Plant Hatch and Plant Vogtle which are currently being operated by
Georgia Power Company.
See Note 2 regarding certain prior year transfers of assets and
liabilities from affiliated companies.
Financial Instruments
The carrying amount of the Company's financial instruments covered under
Financial Accounting Standards Board ("FASB") Statement of Financial
Accounting Standard ("SFAS") No. 107, "Disclosure About
Fair Value of Financial Instruments" approximates fair value at December
31, 1993.
_____________________________________________________________________________<PAGE>
19A
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
_____________________________________________________________________________
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
_____________________________________________________________________________
INSTRUCTIONS: The space below is provided for important notes regarding
the financial statements or any account thereof. Furnish
particulars as to any significant 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.
_____________________________________________________________________________
Income Taxes
The Company is included in the consolidated federal income tax return
filed by Southern. Prior to 1993, income taxes were accounted for and
reported under Accounting Principles Board Opinion No. 11. Effective
January 1, 1993, the Company adopted FASB Statement No. 109, "Accounting
for Income Taxes" on a prospective basis. SFAS No. 109 required, among
other things, conversion to the liability method of accounting for
accumulated deferred income taxes (ADIT). This approach recognizes
deferred tax assets and deferred tax liabilities for estimated future
income tax effects attributable to temporary differences between the
carrying amounts of assets and liabilities in the financial statements and
their respective tax basis. The measurement of deferred taxes is based on
provisions of enacted tax law. The adoption of SFAS No. 109 did not have
a material impact on the provision for income taxes.
The consolidated taxes payable are allocated between the Company and
Southern's other subsidiaries based on their respective contributions to
consolidated taxable income. See Note 6 for further information regarding
income taxes.
Property, Equipment, and Depreciation and Amortization
Property and equipment are recorded at cost. Depreciation and
amortization are provided on the straight-line method over the estimated
economic life of the related asset (ranging from 5 to 12 years).
Leasehold improvements are amortized over the shorter of their economic
life or the lives of the respective leases.
On retirement or sale of assets, the cost of such assets and related
accumulated depreciation are removed from the accounts and the gain or
loss, if any, is credited or charged to income.
2. TRANSFERS FROM AFFILIATED COMPANIES
On January 1, 1991 the Company commenced operations and entered into
nuclear service agreements with Georgia Power Company and Alabama Power
Company, operating subsidiaries of Southern. Effective December 23,
1991, the service agreement with Alabama Power Company was replaced by an
_____________________________________________________________________________<PAGE>
19B
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
_____________________________________________________________________________
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
_____________________________________________________________________________
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.
_____________________________________________________________________________
operating agreement with Alabama Power Company for the operation of Plant
Farley. During 1992, certain employee-related assets and liabilities were
transferred at cost to the Company from certain affiliated companies. The
Company has recorded affiliated company account receivables and payables
associated with the above mentioned transfers. A summary of these
transactions with affiliated companies is as follows:
1992
Description Asset Liability
(In thousands)
Accrual for pensions $ - $ 594
Postretirement benefits - 207
Deferred income taxes 610 -
Accounts receivable
from affiliated companies 801 -
Accounts payable
to affiliated companies 610
Total $ 1,411 $ 1,411
3. RETIREMENT BENEFITS
Pension Plan
The Company has a defined benefit, trusteed, non-contributory pension plan
which covers substantially all regular employees. Benefits are based on
the greater of amounts calculated using two different formulas considering
years of service and either final average pay or a flat dollar benefit.
Primarily, the Company uses the "entry age normal method with a frozen
initial liability" actuarial method for funding purposes, subject to
limitations under federal income tax regulations. Amounts funded to the
pension fund are primarily invested in equity and fixed-income securities.
The Company uses the "projected unit credit" actuarial method for
financial reporting purposes as is required under FASB's SFAS No. 87,
"Employers' Accounting for Pensions."
_____________________________________________________________________________<PAGE>
19C
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
_____________________________________________________________________________
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
_____________________________________________________________________________
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.
_____________________________________________________________________________
Postretirement Benefits
The Company also provides certain medical care and life insurance benefits
for retired employees. Substantially all employees may become eligible
for these benefits when they retire. The Company accounts for these
benefits on an accrual basis. Expenses incurred to provide these benefits
were approximately $3,309,000 and $1,885,000 in 1993 and 1992,
respectively.
Effective January 1, 1993, the Company adopted FASB Statement No. 106,
"Employers' Accounting for Postretirement Benefits Other Than Pensions,"
on a prospective basis. SFAS No. 106 requires that health care and life
insurance benefits for retired employees be accounted for on an accrual
basis using a single actuarial method, "benefit/years-of-service." This
method spreads the expected cost of such benefits to each year of an
employee's service until the employee becomes fully eligible to receive
the benefits. Implementation of SFAS No. 106 resulted in a transitional
obligation related to past employee service of $9 million, which will be
recognized over 20 years commencing in 1993. When regulatory approval for
the transfer of operating responsibility for Plant Hatch and Plant Vogtle
has been obtained and the employees at those facilities transfer to the
Company, the postretirement benefit obligation will be approximately $7.8
million higher than the above actuals.
Status and Cost of Benefits
Shown in the following tables are actuarial results and assumptions for
pension and postretirement medical and life insurance benefits as computed
under the requirements of FASB Statement Nos. 87 and 106, respectively.
Retiree medical and life insurance information is shown only for 1993
because SFAS No. 106 was adopted as of January 1, 1993, on a prospective
basis. The funded status of the plans at December 31 was as follows:
_____________________________________________________________________________<PAGE>
19D
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
_____________________________________________________________________________
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
_____________________________________________________________________________
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.
_____________________________________________________________________________
Pension
1993 1992
(In thousands)
<S> <C> <C>
Actuarial present value of
benefit obligations:
Vested benefits $ (29,504) $ (20,428)
Nonvested benefits (3,379) (2,447)
Accumulated benefit
obligation (32,883) (22,875)
Additional amounts related
to projected salary
increases (27,075) (27,369)
Projected benefit obligation (59,958) (50,244)
Fair value of plan assets,
primarily equity and fixed
income securities 49,679 42,867
Unrecognized net gain (21,208) (19,210)
Unrecognized net transition
asset (3,555) (3,861)
Unrecognized prior service
cost 1,783 1,893
Accrued pension cost
recognized in the
balance sheets $ (33,259) $ (28,555)
Postretirement
Medical Life
1993 1993
(In thousands)
Actuarial present value of
benefit obligations:
Retirees and dependents $ 343 $ 317
Employees eligible to retire 2,042 -
Other employees 15,891 4,760
Accumulated benefit
obligation 18,276 5,077
Less:
Fair value of plan assets - -
Unrecognized net loss(gain) 2,798 (495)
Unrecognized transition
obligation 7,476 1,158
Accrued liability recognized in the
balance sheets $ 8,002 $ 4,414 <PAGE>
_____________________________________________________________________________
</TABLE> <PAGE>
19E
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
_____________________________________________________________________________
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
_____________________________________________________________________________
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.
_____________________________________________________________________________
Weighted average rates assumed in the actuarial calculations for 1993 and
1992 were:
1993 1992
Discount 7.5% 8.0%
Annual salary increase 5.0% 6.0%
Long-term return on plan assets 8.5% 8.5%
An additional assumption used in measuring the accumulated postretirement
medical benefit obligation was a weighted average medical care cost trend
rate of 11.3 percent for 1993, decreasing gradually to 6.0 percent through
the year 2000 and remaining at that level thereafter. An annual increase
in the assumed medical care cost trend rate by 1.0 percent would increase
the accumulated medical benefit obligation as of December 31, 1993, by $5
million and the aggregate of the service and interest cost components of
the net retiree medical cost by $.6 million.
Components of the plans' net cost are shown below:
Pension
1993 1992
(In thousands)
Benefits earned during
the year $ 4,259 $ 3,867
Interest cost on projected
benefit obligation 4,099 3,354
Actual return on plan assets (6,293) (1,973)
Net amortization and deferrals 2,639 (1,147)
Net pension cost $ 4,704 $ 4,101
Of the above net pension cost recorded, $4.4 million in 1993 and $3.8
million in 1992 were charged to operating expenses, and the remainder was
charged to construction and other accounts.
_____________________________________________________________________________ <PAGE>
19F
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
_____________________________________________________________________________
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
_____________________________________________________________________________
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.
_____________________________________________________________________________
Postretirement
Medical Life
1993 1993
(In thousands)
Benefits earned during
the year $ 1,052 $ 366
Interest cost on accumulated
benefit obligation 1,070 388
Amortization of transition
obligation over 20 years 374 58
Actual return on plan assets - -
Net amortization and deferrals - -
Net postretirement cost $ 2,496 $ 812
Net postretirement medical and life insurance costs recorded in 1993 were
charged to operating expenses.
4. SERVICE AND OPERATING AGREEMENTS
Effective January 1, 1991, the Company entered into nuclear service
agreements with Alabama Power Company and Georgia Power Company under
which the Company renders the following nuclear-related services at cost:
general executive and advisory services; general operations management and
technical services; administrative services including procurement,
accounting and statistical, employee relations, and system and procedures
services; strategic planning and budgeting services; and other services
with respect to business and operations. Effective December 23, 1991, the
service agreement with Alabama Power Company was replaced with an
operating agreement with Alabama Power Company for the operation of Plant
Farley.
The Company has also entered into a service agreement with Southern
Company Services, Inc. ("SCS"), a subsidiary of Southern, to receive the
following services at cost: general executive and advisory services,
general engineering, design engineering, purchasing, accounting and
statistical, finance and treasury, taxes, insurance and pensions,
corporate, budgeting, employee relations, systems and procedures, and
other services with respect to business and operations.
_____________________________________________________________________________<PAGE>
19G
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
_____________________________________________________________________________
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
_____________________________________________________________________________
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.
_____________________________________________________________________________
5. NOTE PAYABLE TO PARENT COMPANY
The Company is indebted to Southern for a $5 million note payable dated
December 31, 1990 and due on or before December 31, 2000. The note bears
interest at a rate comparable with market rates which is adjusted monthly,
with interest payable quarterly. Proceeds from the note were used to pay
affiliated companies for certain property and equipment received in
January 1991.
6. INCOME TAXES
A detail of the federal and state income tax provisions is shown below
(Note 1):
1993 1992
(In thousands)
Total provision for income
taxes:
Federal --
Current payable $ 1,092 $ 394
Deferred - Current year (3,391) (2,448)
Reversal of prior year 1,306 1,709
(993) (345)
State --
Current payable 355 73
Deferred - Current Year (312) (268)
Reversal of prior year 131 248
174 53
Federal and state
income taxes charged
to operations $ (819) $ (292)
The tax effects of temporary differences between the carrying amounts of
assets and liabilities in the financial statements and their respective
tax basis, which give rise to deferred tax assets and liabilities are as
follows:
_____________________________________________________________________________ <PAGE>
19H
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
_____________________________________________________________________________
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
_____________________________________________________________________________
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.
_____________________________________________________________________________
1993
(In thousands)
Deferred tax liabilities:
Accelerated depreciation $ 281
Other 66
Total 347
Deferred tax assets:
Other deferred costs (19,904)
Other (273)
Total (20,177)
Net deferred tax liabilities (assets) (19,830)
Portion included in current assets 1,170
Accumulated deferred income taxes
in the consolidated balance sheets $(18,660)
Deferred income taxes result from certain costs that are recognized for
income tax purposes in periods different from those used for book
purposes.
7. RENTS
The Company subleases its office space from an affiliated company on a
month-to-month basis. Current monthly billing is approximately $86,000.
8. OUTSIDE SERVICES
The Company incurred expenses of approximately $61 million and $64 million
for 1993 and 1992, respectively, associated with services provided by SCS
(see Note 4 for description of services provided). These expenses are
primarily included in outside services in the accompanying statements of
income.
_____________________________________________________________________________ <PAGE>
19I
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
_____________________________________________________________________________
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
_____________________________________________________________________________
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.
_____________________________________________________________________________
9. DUES AND ASSESSMENTS
Effective with the signing of the operating agreement with Alabama Power
Company, as discussed in Note 2, the Company became responsible for dues
and assessments from the Nuclear Regulatory Commission and other industry
trade and business associations. The detail of dues and assessments
expenses incurred for 1993 and 1992 is as follows:
1993 1992
(In thousands)
Nuclear Regulatory Commission $ 8,562 $ 7,576
Electric Power Research Institute 579 810
Institute of Nuclear Power Operators 770 760
Other 1,231 918
$ 11,142 $ 10,064
_____________________________________________________________________________<PAGE>
20
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
SCHEDULE XV - STATEMENT OF INCOME
_____________________________________________________________________________
ACCOUNT DESCRIPTION CURRENT PRIOR
YEAR YEAR
(Note 2)
_____________________________________________________________________________
<C> <S> <C> <C>
INCOME
457 Services rendered to associate companies 195,174 196,010
458 Services rendered to nonassociate companies - -
421 Miscellaneous income or loss 254 236
TOTAL INCOME 195,428 196,246
EXPENSE
920 Salaries and wages 81,719 85,979
921 Office supplies and expenses 11,717 10,288
922 Administrative expense transferred -
credit - -
923 Outside services employed 61,284 64,073
924 Property insurance 27 7
925 Injuries and damages 1,146 1,043
926 Employee pensions and benefits 16,111 13,264
928 Regulatory commission expense - -
930.1 General advertising expenses - -
930.2 Miscellaneous general expenses 12,261 10,772
931 Rents 1,580 1,891
932 Maintenance of structures and equipment 725 120
403 Depreciation and amortization expense 1,577 1,685
408 Taxes other than income taxes 6,157 5,741
409 Income taxes 1,448 466
410 Provision for deferred income taxes 1,981 2,043
411 Provision for deferred income taxes -
credit (4,248) (2,801)
411.5 Investment tax credit - -
426.1 Donations 141 78
426.5 Other deductions 1,635 1,390
427 Interest on long-term debt - -
430 Interest on debt to associate companies 167 205
431 Other interest expense - 2
TOTAL EXPENSE 195,428 196,246
NET INCOME OR (LOSS) - -
( ) Denotes red figure
_____________________________________________________________________________
/TABLE
<PAGE>
21
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
_____________________________________________________________________________
DIRECT INDIRECT COMPENSATION TOTAL
NAME OF ASSOCIATE COMPANY COSTS COSTS FOR USE OF AMOUNT
CHARGED CHARGED CAPITAL BILLED
457-1 457-2 457-3
_____________________________________________________________________________
<S> <C> <C> <C> <C>
Alabama Power Company 99,229 11,823 56 111,108
Georgia Power Company 60,309 23,646 111 84,066
TOTAL 159,538 35,469 167 195,174
_____________________________________________________________________________ <PAGE>
</TABLE>
<TABLE>
22
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
____________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
COST COST FOR USE TOTAL OR AMOUNT
NAME OF NONASSOCIATE CHARGED CHARGED OF CAPITAL COST DEFICIENCY BILLED
458-1 458-2 458-3 458-4
____________________________________________________________________________________________________________
Not Applicable
____________________________________________________________________________________________________________
Instruction: Provide a brief description of the services rendered to each nonassociate company:
None
</TABLE> <PAGE>
<TABLE>
23
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_______________________________________________________________________________________________________________________
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
ASSOCIATE COMPANY NONASSOCIATE COMPANY TOTAL CHARGES
CHARGES CHARGES FOR SERVICE
_______________________________________________________________________________________________________________________
DESCRIPTION OF ITEMS DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT RECLASSI-
COST COST TOTAL COST COST TOTAL COST COST FICATION* TOTAL
<C> <S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 67,616 14,103 81,719 - - - 67,616 14,103 - 81,719
921 OFFICE SUPPLIES AND
EXPENSES 6,478* 5,382* 11,860* - - - 6,478 5,382 (143) 11,717
922 ADMINISTRATIVE EXPENSE
TRANSFERRED - CREDIT - - - - - - - - - -
923 OUTSIDE SERVICES
EMPLOYED 53,386 7,798 61,184 - - - 53,386 7,798 - 61,184
924 PROPERTY INSURANCE - 27 27 - - - - 27 - 27
925 INJURIES AND DAMAGES 304 842 1,146 - - - 304 842 - 1,146
926 EMPLOYEE PENSIONS AND
BENEFITS 12,981 2,987 15,968* - - - 12,981 2,987 143 16,111
928 REGULATORY COMMISSION
EXPENSE - - - - - - - - - -
930.1 GENERAL ADVERTISING
EXPENSES - - - - - - - - - -
930.2 MISCELLANEOUS GENERAL
EXPENSES 11,545 816 12,361 - - - 11,545 816 - 12,361
931 RENTS 947 633 1,580 - - - 947 633 - 1,580
932 MAINTENANCE OF
STRUCTURES AND
EQUIPMENT 587 138 725 - - - 587 138 - 725
403 DEPRECIATION AND
AMORTIZATION EXPENSE 349 1,228 1,577 - - - 349 1,228 - 1,577
408 TAXES OTHER THAN
INCOME TAXES 5,248 909 6,157 - - - 5,248 909 - 6,157
409 INCOME TAXES - (819) (819) - - - - (819) 2,267 1,448
410 PROVISION FOR DEFERRED
INCOME TAXES - - - - - - - - 1,981 1,981
411 PROVISION FOR DEFERRED
INCOME TAXES -
CREDIT - - - - - - - - (4,248) (4,248)
411.5 INVESTMENT TAX CREDIT - - - - - - - - - -
426.1 DONATIONS - 141 141 - - - - 141 - 141
426.5 OTHER DEDUCTIONS 97 1,538 1,635 - - - 97 1,538 - 1,635
427 INTEREST ON LONG -
TERM DEBT - - - - - - - - - -
431 OTHER INTEREST EXPENSE - - - - - - - - - -
(Continued on page 23A)
</TABLE>
<TABLE>
23A
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_______________________________________________________________________________________________________________________
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
_______________________________________________________________________________________________________________________
ASSOCIATE COMPANY NONASSOCIATE COMPANY TOTAL CHARGES
CHARGES CHARGES FOR SERVICE
DESCRIPTION OF ITEMS DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECTRECLASSI-
COST COST TOTAL COST COST TOTAL COST COST FICATION* TOTAL
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
INSTRUCTIONS: Total cost of
service will equal for
associate and nonassociate
companies the total amount
billed under their separate
analysis of billing
schedules.
SUB-TOTAL EXPENSES = 159,538 35,723 195,261 - - - 159,538 35,723 - 195,261
COMPENSATION FOR
USE OF
EQUITY CAPITAL = - - - - - - - - - -
430 INTEREST ON DEBT TO
ASSOC. COMPANIES = - 167 167 - - - - 167 - 167
TOTAL EXPENSES = 159,538 35,890 195,428 - - - 159,538 35,723 - 195,428
421 MISCELLANEOUS
NONOPERATING
INCOME = - (254) (254) - - - - (254) - (254)
TOTAL COST OF
SERVICE = 159,538 35,636 195,174 - - - 159,538 35,636 - 195,174
* Reclassified for financial ( ) Denotes red figure
reporting purposes
</TABLE> <PAGE>
<TABLE>
24
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
__________________________________________________________________________________________________________________
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
__________________________________________________________________________________________________________________
DEPARTMENT OR SERVICE FUNCTION
DESCRIPTION Total Strategic Governmental Vogtle Hatch Farley
Amount Executive Analysis Affairs Project Project Project
<C> <S> <C> <C> <C> <C> <C> <C> <C>
920 SALARIES AND WAGES 81,719 773 259 - 4,316 4,052 3,841
921 OFFICE SUPPLIES AND EXPENSES 11,717 85 48 - 365 511 529
922 ADMINISTRATIVE EXPENSE TRANSFERRED - CREDIT - - - - - - -
923 OUTSIDE SERVICES EMPLOYED 61,184 1,749 17 - 13,008 17,945 13,202
924 PROPERTY INSURANCE 27 - - - - - -
925 INJURIES AND DAMAGES 1,146 - - - - - -
926 EMPLOYEE PENSIONS AND BENEFITS 16,111 - - - - - -
928 REGULATORY COMMISSION EXPENSE - - - - - - -
930.1 GENERAL ADVERTISING EXPENSE - - - - - - -
930.2 MISCELLANEOUS GENERAL EXPENSES 12,361 83 - - 83 2 9,467
931 RENTS 1,580 - - - - - -
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 725 - - - - - -
403 DEPRECIATION AND AMORTIZATION EXPENSE 1,577 - - - - - -
408 TAXES OTHER THAN INCOME TAXES 6,157 - - - - - -
409 INCOME TAXES 1,448 - - - - - -
410 PROVISION FOR DEFERRED INCOME TAXES 1,981 - - - - - -
411 PROVISION FOR DEFERRED INCOME TAXES - CREDIT (4,248) - - - - - -
411.5 INVESTMENT TAX CREDIT - - - - - - -
426.1 DONATIONS 141 124 - - - - -
426.5 OTHER DEDUCTIONS 1,635 57 - 938 - - 3
427 INTEREST ON LONG-TERM DEBT - - - - - - -
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 167 - - - - - -
431 OTHER INTEREST EXPENSE - - - - - - -
TOTAL EXPENSES 195,248 2,871 324 938 17,772 22,510 27,042
421 MISCELLANEOUS GAIN (254) - - - - - -
_______________________________________________________________________________________________________________________
INSTRUCTION: Indicate each department or service
function. (see Instruction 01-3
General Structure of Accounting
System: Uniform System of Account).
TOTAL COSTS = 195,174 2,871 324 938 17,772 22,510 27,042
( ) Denotes red figure
</TABLE> <PAGE>
<TABLE>
25
ANNUAL REPORT OF Southern Nuclear Operating Company
For the Year Ended December 31, 1993 (Tho
_______________________________________________________________________________________________________________________
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
DEPARTMENT OR SERVICE FUNCTION
ACCOUNT Farley Technical Administrative Corporate
NUMBER Plant Services Services General
_______________________________________________________________________________________________________________________
<S> <C> <C> <C> <C>
920 45,270 6,577 10,729 5,902
921 566 1,222 6,843 1,584
922 - - - -
923 28 2,938 8,085 4,212
924 - - - 27
925 - - (3) 1,149
926 - - 194 15,917
928 - - - -
930.1 - - - -
930.2 - 2,474 151 101
931 1 1 537 1,041
932 - - 725 -
403 - - - 1,577
408 - - 7 6,150
409 - - - 1,448
410 - - - 1,981
411 - - - (4,248)
411.5 - - - -
426.1 - - 3 14
426.5 1 - 9 627
427 - - - -
430 - - - 167
431 - - - -
Expenses 45,866 13,212 27,280 37,613
421 (254)
_______________________________________________________________________________________________________________________
Total Costs 45,866 13,212 27,280 37,359
( ) Denotes red figure.<PAGE>
/TABLE
<PAGE>
26
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
_____________________________________________________________________________
DEPARTMENTAL SALARY EXPENSE NUMBER
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO PERSONNEL
Indicate each TOTAL PARENT OTHER NON END OF
department or AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
service function
_____________________________________________________________________________
<S> <C> <C> <C> <C> <C>
Executive 773 773 8
Strategic Analysis 259 259 4
Vogtle Project 4,316 4,316 72
Hatch Project 4,052 4,052 68
Farley Project 3,841 3,841 66
Farley Plant 45,270 45,270 910
Technical Services 6,577 6,577 108
Administrative
Services 10,729 10,729 217
Corporate General
(Accrual for
incentive pay
plan, etc.) 5,902 5,902 -
TOTAL 81,719 - 81,719 - 1,453
_____________________________________________________________________________
/TABLE
<PAGE>
27
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
_____________________________________________________________________________
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $25,000,
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
_____________________________________________________________________________
RELATIONSHIP
"A"=
ASSOCIATE
"NA"=NON
FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT
<S> <C> <C> <C>
Legal Services
Troutman, Sanders 600 Peachtree St. N.E., NA 1,854
Lockerman and Ashmore Suite 5200
Atlanta, GA 30303-1810
Balch & Bingham P. O. Box 306, NA 1,098
Birmingham, AL 35201
Shaw, Pittman, Potts & 2300 N. Street, N.W. NA 232
Trowbridge Washington, D.C.
20037-1128
Winston & Strawn 1400 L. St. N.W., NA 81
Washington, D.C.
20005-3502
Newman & Holtzinger 1615 L. St. N.W., NA 34
Washington, D.C.
20036-5680
Finestone, Morris & 3340 Peachtree Rd., N.W. NA 32
Wildstein Suite 2540 Tower Place
Atlanta, GA 30326
Finch, McCranie, Brown, & 225 Peachtree St., N.E. NA 25
Thrash 1700 South Tower
Atlanta, GA 30303
Six Other Items (less than Aggregate NA 92
$25,000 paid to other than
Associate Cos.)
3,448
Auditing Services
Arthur Andersen & Co. 133 Peachtree St., N.E., NA 175
Atlanta, GA 30303
175<PAGE>
(Continued on page 27A)
_____________________________________________________________________________<PAGE>
27A
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
_____________________________________________________________________________
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $25,000,
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
_____________________________________________________________________________
RELATIONSHIP
"A"=
ASSOCIATE
"NA"=NON
FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT
_____________________________________________________________________________
Engineering Services
Southern Company Services, 64 Perimeter Center East, A 43,419
Inc. Atlanta, GA 30346
Universal Systems, Inc. 4350 Fair Labor Court NA 777
Fairfax, VA 22033
SONIC Systems International 1880 Dairy Ashford NA 756
Suite 207,
Houston, TX 77077
Lambert MacGill Thomas, Inc. 525 Aldo Avenue, NA 541
Santa Clara, CA
95054-2205
Electric Power Research P. O. Box 61000 NA 275
Institute Dept. 1527
San Francisco, CA
94161
ABB Combustion Engineering, P. O. Box 905443 NA 191
Inc. Charlotte, NC 28290
Master-Lee Energy Services 1639 Clearview Dr., NA 137
Latrobe, PA 15650
Cramer and Lindell 227 W. Main St., NA 128
Engineering P. O. Box 600,
Niantic, CT 06357
PLG, Inc. 4590 Macarthur Blvd., NA 96
Newport Beach, CA 92660
Nuclear Energy Services, Inc. P. O. Box 75475 NA 89
Charlotte, NC 28275
MQS Inspection P. O. Box 1531, Elk Grove NA 63
Village, IL 60009
NUS Corporation 2650 McCormick Dr., NA 61
Clearwater, FL 34519
(Continued on page 27B)
_____________________________________________________________________________<PAGE>
27B
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
_____________________________________________________________________________
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $25,000
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
_____________________________________________________________________________
RELATIONSHIP
"A"=
ASSOCIATE
"NA"=NON
FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT
_____________________________________________________________________________
Engineering Services (Continued)
Duke Engineering & Services, P. O. Box 65415 NA 52
Inc. Charlotte, NC 28265
Con Edison of New York, Inc. 4 Irving Place NA 50
New York, NY 10003
Energy Resources 1015 18th St., N.W., NA 40
International Washington, D.C. 20036
Bechtel Power Corporation P. O. Box 905168, NA 35
Charlotte, NC 28290-5168
TLG Services 148 New Milford Rd. E, NA 34
Bridgewater, CT 06752
Enertech Dept. 66812 NA 33
El Monte, CA 91735
Nine Other Items Aggregate NA 101
(less than $25,000 paid to
other than Associate Cos.)
46,878
Management Consulting Services
Andersen Consulting 133 Peachtree St., N.E. NA 32
Atlanta, GA 30303
Four Other Items Aggregate NA 26
(less than $25,000 paid to
other than Associates Cos.)
58
Other Services
Southern Company Services, 64 Perimeter Center East, A 9,912
Inc. Atlanta, GA 30346
Woods Technical P. O. Box 984, NA 180
Support Group Baxley, GA 31513
(Continued on page 27C)
_____________________________________________________________________________<PAGE>
27C
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
OUTSIDE SERVICES EMPLOYED
ACCOUNT 923
_____________________________________________________________________________
INSTRUCTIONS: Provide a breakdown by subaccount of outside services
employed. If the aggregate amounts paid to any one payee
and included within one subaccount is less than $25,000,
only the aggregate number and amount of all such payments
included within the subaccount need be shown. Provide a
subtotal for each type of service.
_____________________________________________________________________________
RELATIONSHIP
"A"=
ASSOCIATE
"NA"=NON
FROM WHOM PURCHASED ADDRESS ASSOCIATE AMOUNT
Other Services (Continued)
ADIA Services P. O. Box 360161M, NA 162
Pittsburgh, PA 15250
Red Mountain Internists 840 Montclair Rd., Ste. 321, NA 63
Birmingham, AL 35213
Massachusetts Institute of 77 Massachusetts Ave., NA 53
Technology Room 10-110
Cambridge, MA 02139
Smithkline Beecham Labs P. O. Box 101828, NA 53
Atlanta, GA 30392
Southern Electric 100 Ashford Center N. A 50
International Suite 400
Atlanta, GA 30346
Fairview Clinic 1602 E. Main St., Ste. 303, NA 31
Dothan, AL 36301
B. Lamar Murray M.D. 311 4th St., NA 27
Waynesboro, GA 30830
One Hundred Thirty-four Aggregate NA 194
Other Items (less than
$25,000 paid to other
than Associate Cos.)
10,725
TOTAL 61,284
_____________________________________________________________________________
/TABLE
<PAGE>
28
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
EMPLOYEE PENSIONS AND BENEFITS
ACCOUNT 926
_____________________________________________________________________________
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
<S> <C>
Pensions 4,733
Employee's Group Insurance 5,084
Post-retirement Life Benefits 812
Post-retirement Medical Benefits 2,496
Post-employment Medical Benefits 31
Other Employee Benefits 370
Employee Saving Plan Contribution 2,585
TOTAL 16,111
_____________________________________________________________________________
/TABLE
<PAGE>
29
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
GENERAL ADVERTISING EXPENSES
ACCOUNT 930.1
_____________________________________________________________________________
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 $3000 applicable to a single payee, show
separately the name of the payee and the aggregate amount
applicable thereto.
_____________________________________________________________________________
DESCRIPTION NAME OF PAYEE AMOUNT
_____________________________________________________________________________
<S> <C> <C>
Not Applicable
_____________________________________________________________________________
/TABLE
<PAGE>
30
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
MISCELLANEOUS GENERAL EXPENSES
ACCOUNT 930.2
_____________________________________________________________________________
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.S.
441 (b) (2) shall be separately classified.
_____________________________________________________________________________
DESCRIPTION AMOUNT
<S> <C>
Assessments and Fees 8,939
Membership Dues 1,940
Nuclear Power Research Expenses 1,149
Fixed Asset Retirement 98
Employee Communications 25
Employee Activities 18
Nuclear Information Program 16
Vital Records Storage 9
Other Expenses 67
TOTAL 12,261
_____________________________________________________________________________
/TABLE
<PAGE>
31
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
RENTS
ACCOUNT 931
_____________________________________________________________________________
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
_____________________________________________________________________________
<S> <C>
Office Rents 1,041
Computer Equipment and Software Rental 527
Other Rents 12
TOTAL 1,580
_____________________________________________________________________________
/TABLE
<PAGE>
32
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
TAXES OTHER THAN INCOME TAXES
ACCOUNT 408
_____________________________________________________________________________
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.
_____________________________________________________________________________
KIND OF TAX AMOUNT
_____________________________________________________________________________
<S> <C>
Other than U.S. Government Taxes
Property 69
State Unemployment 70
State Franchise 19
Subtotal - Other 158
U. S. Government Taxes
Federal Insurance Contribution Act 5,907
Federal Unemployment 85
Corporate Environmental 7
Subtotal - U.S. Government 5,999
TOTAL 6,157
_____________________________________________________________________________
/TABLE
<PAGE>
33
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
DONATIONS
ACCOUNT 426.1
_____________________________________________________________________________
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
_____________________________________________________________________________
<S> <C> <C>
Georgia Tech. Research Corp. Support of Program 53
Chelsea High School Support of Program 5
Scholarship Administrators, Inc. Support of Program 6
United Way Support of Program 26
Lee College Employee Matching Gift 4
American Nuclear Society -
Public Education Program Support of Program 5
22 Other Items (Less than $3,000) Health & Human Services 17
41 Other Items (Less than $3,000) Employee Matching Gift 12
5 Other Items (Less than $3,000) Civic & Community 3
3 Other Items (Less than $3,000) Educational Contributions 5
3 Other Items (Less than $3,000) Culture & Arts 5
TOTAL 141
_____________________________________________________________________________
/TABLE
<PAGE>
34
<TABLE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
(Thousands of Dollars)
_____________________________________________________________________________
OTHER DEDUCTIONS
ACCOUNT 426.5
_____________________________________________________________________________
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
_____________________________________________________________________________
<S> <C> <C>
Civic and Political Activities
Labor, Travel, Membership Various Payees 664
Dues and Other Expenses of
Company Employees
Nevada Initiative Edison Electric Institute 101
Transportation and Other Services Southern Company
Services, Inc. 42
Legal Fees Troutman Sanders 80
Legal Fees Balch & Bingham 53
Lobbying Expenses American Nuclear
Energy Council 17
Waste Disposal & Advanced Reactor Science Applications
Services International 6
Other Civic/Political Various Payees 11
Employee Memberships
Memberships and Dues Various Associations 160
Other Deductions
Employee Stock Option Plan Contribution Southern Company
Services, Inc. 451
Retirement Activities PMC 3
Support of Community Activities and
Programs Various Payees 15
Program Support Southeastern Conference -
Football 10
Program Support Birmingham Barons 12
Deferred Productivity Improvement Various Employees 7
Plan
Other Various Payees 3
TOTAL 1,635
_____________________________________________________________________________
/TABLE
<PAGE>
35
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
_____________________________________________________________________________
SCHEDULE XVIII
NOTES TO STATEMENT OF INCOME
_____________________________________________________________________________
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.
_____________________________________________________________________________
See notes to Financial Statements on pages 19 - 19I.
_____________________________________________________________________________<PAGE>
<TABLE>
36
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
December 31, 1993
<S> <C> <C> <C> <C>
_________________
| President |
| and |
| CEO |
| |
_________________
|
__________________________________________________________________|________________________________________________
| | | | |
| | | | |
_________________ _________________ __________________ _______________ ________________
| Vice President | | Vice President | | Director | | Executive | | Vice President
| Administrative | | Technical | | Governmental | | Vice | | and
| Services | | Services | | Affairs | | President* | | Secretary
|________________| |________________| |_________________| |______________| |_______________
| | |
|-General Manager - |-Manager - Nuclear Fuel _________________________|_______________________
| Human Resources |-Manager - Inspection & | | |
|-Manager - Public Affairs | Testing Svcs _________________ __________________ _______________
|-Manager - Security |-Manager - Regulatory | Vice President | | Vice President | | Vice Presiden
|-Manager - Info Resources | Engineering, Environ | | | | |
|-Supervisor - Records Mgmt & | Svcs | Farley Project | | Vogtle Project* | | Hatch Project
| Gen Svcs |-Manager - Corporate |________________| |_________________| |______________
|-Manager - Material Services | Quality Services | | |
| |-General Manager - |-General Mgr - |-General Mgr - |-General Mgr
| ______________ | Nuc Tech Svcs | Nuc Support | Nuc Support* | Nuc Suppo
| | | |-Project Engineer |-Mgr - Safety |-Mgr - Safety |-Mgr - Safet
|___| Comptroller/| | Audit & Eng Audit & Eng Audit & E
| Treasurer | | Review Review Review
|______________| |-General Mgr
| Nuc Plant
|-Manager - Accounting
| Systems & Support
|-Supervisor - Cash Mgt
| and Forecasting
|-Supervisor - General
| Accounting
|-Manager - Corporate
| Accounting
|-Manager - Financial
| Planning
|-Manager - Regulatory
Analysis
*Also a shared employee with Georgia Power Company.
/TABLE
<PAGE>
37
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
__________________________________________________________________
METHODS OF ALLOCATION
__________________________________________________________________
For the descriptions below, the term "plant" means each separate
nuclear electric generating site for which Southern Nuclear is
providing services, regardless of the capacity of the operating
units and regardless of the number of units operating at the site,
and the term "plants" means all of such sites.
1. Employee Basis
Southern Nuclear's organization is designed to focus
primarily on operation of each plant. Plant "modules" will
be established for each plant in which will be employed
personnel directly responsible for the operation of the
plant, including off-site personnel. All of the cost of
employees within a plant module will be directly charged to
the owners of that particular plant. The Employee Basis for
allocation of indirect costs among the plants shall be the
factor for each plant arrived at by dividing the number of
employees in a particular plant module by the total number of
employees in all plant modules. The employee number to be
used initially shall be the initial staffing of the plant
modules. In determining the number of employees after the
first year of operations, the average number of employees in
each module during the previous year shall be used.
2. Plant Basis
The Plant Basis for allocation is the factor determined by
dividing one plant by the total number of plants.
3. Plant Capacity Basis
The Plant Capacity Basis for allocation is the factor
determined by dividing the name plate kilowatt capacity of a
plant by the total kilowatt capacity of all plants.
4. Plant Generation Basis
The Plant Generation Basis for allocation shall be the factor
for each plant established by dividing the total net
generation output from each plant in the previous calendar
year by the total net generation output of all plants. With
respect to a plant for which Southern Nuclear will begin
(Continued on page 37A)
__________________________________________________________________<PAGE>
37A
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
__________________________________________________________________
METHODS OF ALLOCATION
(Continued)
__________________________________________________________________
providing services during a year, or to a plant having a unit
due to be placed in service in a year to which the allocation
will apply, the net generation output for such plants used
for the calculation shall be adjusted to reflect the expected
generation from the unit during the calendar year.
5. Salary Basis
The Salary Basis for allocation shall be the factor
determined by the ratio of direct salary charges assigned to
each plant to the total direct salary charges for each month.
__________________________________________________________________<PAGE>
38
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
_____________________________________________________________________________
ANNUAL STATEMENT OF COMPENSATION FOR USE OF CAPITAL BILLED
_____________________________________________________________________________
The following annual statement was supplied to each associate client
company regarding interest billed for compensation of equity capital and
borrowed capital in 1993.
Pursuant to the amended Uniform System of Accounts for Mutual and
Subsidiary Service Companies implemented in January 1980, Southern
Nuclear is required to submit an annual statement to its associated
client companies stating the amount and calculation of interest billed
for compensation of equity capital and borrowed capital. Southern
Nuclear does not bill its associated client companies for compensation of
equity capital.
On December 31, 1990, Southern Nuclear borrowed $5,000,000 from The
Southern Company (Southern) for working capital requirements. The
interest rate is adjusted as of the first of each month and applicable to
the outstanding principal on a daily basis. The rate applicable to each
month is equal to the average effective interest cost of Southern's
outstanding obligations for borrowed money on the first day of each
month, or if no obligations are outstanding at the time, at a rate equal
to the weekly average of the thirty-day certificate of deposit rate
(secondary market) as reported in Federal Reserve statistical release
H.15 (519) for the next to last complete business week of the preceding
calendar month. However, this rate shall not exceed the prime rate at
Trust Company Bank of Georgia, Atlanta, Georgia in effect on the first of
each month. The interest rate on these funds ranged from 3.06% to 3.54%.
Interest of $167,183.32 was accrued and billed to the associate client
companies. The interest was distributed to each associate client company
on the Plant Allocation Basis in accordance with the SEC order and our
service contracts.
The interest on total company indebtedness was billed to the associate
client companies as follows:
Alabama Power Company $ 55,727.77
Georgia Power Company 111,455.55
$167,183.32
_____________________________________________________________________________<PAGE>
39
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1993
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 issues thereunder, the
undersigned company has duly caused this report to be
signed on its behalf by the undersigned officer thereunto
duly authorized.
Southern Nuclear Operating Company, Inc.
_________________________________________
(Name of Reporting Company)
/s/ R.M. Gilbert, Jr.
By: ____________________________________
(Signature of Signing Officer)
R.M. Gilbert, Jr., Comptroller and Treasurer
____________________________________________
(Printed Name and Title of Signing Officer)
Date: April 30, 1994
_____________________________________________________________________________<PAGE>
