Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1995 and Ending December 31, 1995
---------------- -------------------
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
LISTING OF SCHEDULES AND ANALYSIS OF ACCOUNTS
- -------------------------------------------------------------------------------
Schedule or
Account Page
Description of Schedules and Accounts Number Number
- -------------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------
<PAGE>
3
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
- -------------------------------------------------------------------------------
Schedule Page
Description of Schedules and Accounts Number Number
- -------------------------------------------------------------------------------
NOTES TO STATEMENT OF INCOME Schedule 35
XVIII
FINANCIAL DATA SCHEDULE Schedule XIX 36
ORGANIZATION CHART 37
METHODS OF ALLOCATION 38
ANNUAL STATEMENT OF COMPENSATION FOR USE
OF CAPITAL BILLED 39
- -------------------------------------------------------------------------------
<PAGE>
4
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
- -------------------------------------------------------------------------------
SERVICE COMPANY PROPERTY
101 Service company property (Schedule II) 12,585 13,554
107 Construction work in progress (Schedule II) - -
-------- -------
Total Property 12,585 13,554
-------- -------
108 Less accumulated provision for depreciation
and amortization for service company
property (Schedule III) 8,477 8,316
-------- -------
Net Service Company Property 4,108 5,238
-------- -------
INVESTMENTS
123 Investments in associates companies - -
(Schedule IV)
124 Other investments (Schedule IV) 1,822 1,891
------ -------
Total Investments 1,822 1,891
------ -------
CURRENT AND ACCRUED ASSETS
131 Cash 104 131
134 Special deposits - -
135 Working funds 34 42
136 Temporary cash investments (Schedule IV) 2,630 3,100
141 Notes receivable - -
143 Accounts receivable 469 27
144 Accumulated provision for uncollectible
accounts - -
146 Accounts receivable from associate
companies (Schedule V) 76,032 65,976
152 Fuel stock expenses undistributed
(Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 53 472
174 Miscellaneous current and accrued
assets (Schedule VIII) 1 1
------- -------
Total Current and Accrued Assets 79,323 69,749
------- -------
DEFERRED DEBITS
181 Unamortized debt expense - -
184 Clearing accounts - -
186 Miscellaneous deferred debits (Schedule IX) 446 199
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 23,344 23,364
------- -------
Total Deferred Debits 23,790 23,563
------- -------
TOTAL ASSETS AND OTHER DEBITS 109,043 100,441
------- -------
- -------------------------------------------------------------------------------
<PAGE>
5
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
- -------------------------------------------------------------------------------
PROPRIETARY CAPITAL
201 Common stock issued (Schedule XI) 10 10
211 Miscellaneous paid-in-capital
(Schedule XI) 1,614 1,530
215 Appropriated retained earnings
(Schedule XI) - -
216 Unappropriated retained earnings
(Schedule XI) - -
-------- --------
Total Proprietary Capital 1,624 1,540
-------- --------
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 8,354 6,110
233 Notes payable to associate companies
(Schedule XIII) - -
234 Accounts payable to associate companies
(Schedule XIII) 16,653 17,056
236 Taxes accrued 385 733
237 Interest accrued 75 71
238 Dividends declared - -
241 Tax collections payable 7 3
242 Miscellaneous current and accrued liabilities
(Schedule XIII) 72,576 65,692
------- --------
Total Current and Accrued
Liabilities 98,050 89,665
-------- --------
DEFERRED CREDITS
253 Other deferred credits 3,774 3,856
255 Accumulated deferred investment tax credits - -
------- -------
Total Deferred Credits 3,774 3,856
------- -------
282 ACCUMULATED DEFERRED INCOME TAXES 595 380
--------------------------------- ------- -------
TOTAL LIABILITIES AND PROPRIETARY
CAPITAL 109,043 100,441
------- -------
- -------------------------------------------------------------------------------
<PAGE>
6
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
<S> <C> <C> <C> <C> <C> <C>
(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
301 ORGANIZATION 49 (49) - - -
303 MISCELLANEOUS
INTANGIBLE
PLANT - - - - -
304 LAND & LAND
RIGHTS - - - - -
305 STRUCTURES AND
IMPROVEMENTS - - - - -
306 LEASEHOLD
IMPROVEMENTS 1,539 - - - 1,539
307 EQUIPMENT 2/ 6,250 1,035 1,313 (117) 5,855
308 OFFICE
FURNITURE AND
EQUIPMENT 2/ 4,693 205 780 (1) 4,117
309 AUTOMOBILES,
OTHER
VEHICLES, AND
RELATED GARAGE
EQUIPMENT - - - - -
310 AIRCRAFT AND
AIRPORT
EQUIPMENT - - - - -
311 OTHER SERVICE
COMPANY
PROPERTY 3/ 1,023 40 - 11 1,074
----- -- - -- -----
SUB-TOTAL 13,554 1,231 2,093 (107) 12,585
------ ----- ----- ----- ------
107 CONSTRUCTION
WORK IN
PROGRESS - - - - -
------ ----- ----- ----- ------
TOTAL 13,554 1,231 2,093 (107) 12,585
------ ----- ----- ----- ------
() Denotes red figure
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
7
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
EQUIPMENT
Personal Computer Equipment 915 5,374
Mainframe Computer Equipment - 164
Office Automation Equipment - 2
Telecommunication Equipment 120 315
----- -----
1,035 5,855
----- -----
OFFICE FURNITURE AND EQUIPMENT
Office Furniture and Equipment 10 2,228
Miscellaneous Equipment 195 1,889
------ -----
205 4,117
------ -----
- -------------------------------------------------------------------------------
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
Purchased computer software and licenses.
- -------------------------------------------------------------------------------
<PAGE>
8
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
<S> <C> <C> <C> <C> <C> <C>
(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
301 ORGANIZATION - - - - -
303 MISCELLANEOUS
INTANGIBLE PLANT - - - - -
304 LAND AND LAND
RIGHTS - - - - -
305 STRUCTURES AND
IMPROVEMENTS - - - - -
306 LEASEHOLD
IMPROVEMENTS 1,539 - - - 1,539
307 EQUIPMENT 3,274 1,046 1,098 (1) 3,221
308 OFFICE
FURNITURE AND
EQUIPMENT 3,063 402 454 - 3,011
309 AUTOMOBILES,
OTHER
VEHICLES, AND
RELATED
GARAGE
EQUIPMENT - - - - -
310 AIRCRAFT AND
AIRPORT
EQUIPMENT - - - - -
311 OTHER SERVICE
COMPANY
PROPERTY 440 227 - 39 706
----- ----- ----- -- -----
TOTAL 8,316 1,675 1,552 38 8,477
----- ----- ----- -- -----
- ---------------------------------------------------------------------------------------------------------------
1/ PROVIDE AN EXPLANATION OF THOSE CHANGES CONSIDERED MATERIAL:
NONE
- ---------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
9
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
ACCOUNT 123 - INVESTMENT IN ASSOCIATE
COMPANIES - -
ACCOUNT 124 - OTHER INVESTMENTS
Miscellaneous Employee Loans 3 2
Employee Energy Loans
(Empl/Retiree) 1,591 1,486
Employee Computer Loans 297 334
----- -----
1,891 1,822
----- -----
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
Eurodollar Time Deposit 3,100 2,630
----- -----
TOTAL 4,991 4,452
----- -----
- -------------------------------------------------------------------------------
<PAGE>
10
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
ACCOUNT 146 - ACCOUNTS RECEIVABLE FROM
ASSOCIATE COMPANIES
Southern Company Services, Inc. 6,047 6,010
Alabama Power Company 43,461 50,780
Georgia Power Company 16,468 19,242
------ ------
TOTAL 65,976 76,032
------ ------
- -------------------------------------------------------------------------------
ANALYSIS OF CONVENIENCE OR ACCOMMODATION PAYMENTS: TOTAL
PAYMENTS
-------
TOTAL PAYMENTS -
-------
- -------------------------------------------------------------------------------
<PAGE>
11
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
ACCOUNT 152 - FUEL STOCK EXPENSES
UNDISTRIBUTED
NOT APPLICABLE
- -------------------------------------------------------------------------------
SUMMARY:
NOT APPLICABLE
- -------------------------------------------------------------------------------
<PAGE>
12
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
ACCOUNT 163 - STORES EXPENSE
UNDISTRIBUTED Not Applicable
- -------------------------------------------------------------------------------
<PAGE>
13
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
ACCOUNT 174 - MISCELLANEOUS CURRENT AND
ACCRUED ASSETS
Interest Receivable on Temporary Cash
Investments (1 Item) 1 1
TOTAL 1 1
--- --
- -------------------------------------------------------------------------------
<PAGE>
14
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
ACCOUNT 186 - MISCELLANEOUS DEFERRED
DEBITS
Employee Relocation Expenses 46 -
Undistributed Labor Accrual and
Reversal 153 152
Payroll Deduction Timing Difference 180
Personal Access Data System-
1996 Assessment - 86
Computer License Tax - 15
Sundry Delayed (6) - 13
------ -------
--- ---
Total 199 446
--- ---
- -------------------------------------------------------------------------------
<PAGE>
15
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
ACCOUNT 188 - RESEARCH, DEVELOPMENT, OR DEMONSTRATION
EXPENDITURES
NOT APPLICABLE
- -------------------------------------------------------------------------------
<PAGE>
16
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
<S> <C> <C> <C> <C> <C>
(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
- --------------------------------------------------------------------------------------------------------------------
201 COMMON STOCK ISSUED 1,000 10.00 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 624
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS -
-----
TOTAL 1,614
-----
- --------------------------------------------------------------------------------------------------------------------
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>
17
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
<S> <C> <C> <C> <C> <C> <C> <C> <C>
(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
- -------------------------------------------------------------------------------------------------------------------------------
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>
<TABLE>
<CAPTION>
18
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
<S> <C> <C> <C>
(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
- ----------------------------------------------------------------------------------------------
ACCOUNT 233 - NOTES PAYABLE TO ASSOCIATE COMPANIES - -
TOTAL ----- -----
- -
----- -----
- ----------------------------------------------------------------------------------------------
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Alabama Power Company 7,871 7,332
Georgia Power Company 2,409 1,351
Southern Company Services, Inc. 6,776 7,970
------ ------
TOTAL 17,056 16,653
------ ------
- ----------------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
Accrual for Pensions 37,222 36,395
Accumulated Provision for Pensions and Benefits-Post-
Retirement Life Insurance 5,102 5,742
Accumulated Provision for Pensions and Benefits-Post-
Retirement Medical Insurance 10,961 13,721
Accumulated Provision for Pensions and Benefits-
Supplemental and Special 105 165
Employee Stock Option Plan Contribution 458 469
Vacation Pay Accrual 4,487 5,390
Performance Pay Plan Accrual 6,751 6,825
Productivity Improvement Plan Accrual 265 3,422
Worker's Compensation Awards 93 75
Accumulated Provision for Supplemental Benefits-
ESP/ESOP 7 25
Accumulated Provision for Post Employment Benefits-
Medical 241 347
------ ------
TOTAL 65,692 72,576
------ ------
- ----------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
19
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
- -----------------------------------------------------------------------------
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.
The Company follows generally accepted accounting principles and complies
with the accounting policies and practices prescribed by its commissions.
The preparation of financial statements in conformity with generally
accepted accounting principles requires the use of estimates, and the
actual results may differ from those estimates.
- -----------------------------------------------------------------------------
<PAGE>
19A
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
- -----------------------------------------------------------------------------
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.
- -----------------------------------------------------------------------------
Temporary Cash Investments
For purposes of the statements of cash flows, temporary cash investments,
which are securities with original maturities of 90 days or less, are
considered cash equivalents.
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, 1995 and 1994.
Income Taxes
The Company is included in the consolidated federal income tax return
filed by Southern. In conformity with SFAS No. 109, "Accounting for Income
Taxes," the Company 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 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.
- -----------------------------------------------------------------------------
<PAGE>
19B
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
-----------------------------------------------------------------------------
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.
- -----------------------------------------------------------------------------
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
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 $1.4 million in affiliated company account
receivables and payables associated with the above mentioned transfers.
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 resulting from two different formulas: years of
service and final average pay or years of service and 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.
SFAS No. 87, "Employers' Accounting for Pensions," requires use of the
"projected unit credit" actuarial method for financial reporting purposes.
- -----------------------------------------------------------------------------
<PAGE>
19C
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
-----------------------------------------------------------------------------
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 $3,759,000 and $3,788,000 in 1995 and 1994, respectively.
In conformity with SFAS 106, "Employers' Accounting for Postretirement
Benefits Other Than Pensions," the Company accounts for health care and
life insurance benefits for retired employees on an accrual basis using a
specified 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, effective January 1, 1993, resulted in a
transition obligation related to past employee service of $9 million,
which will be recognized over 20 years commencing in 1993.
Status and Cost of Benefits
The following tables show actuarial results and assumptions for pension
and postretirement medical and life insurance benefits as computed under
the requirements of SFAS Nos. 87 and 106, respectively. The funded status
of the plans at December 31 was as follows:
- -----------------------------------------------------------------------------
<PAGE>
19D
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
-----------------------------------------------------------------------------
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.
- -----------------------------------------------------------------------------
Actuarial present value of benefit obligations:
Pension
-------------------
1995 1994
---- ----
(In thousands)
Vested benefits $ 41,961 $ 29,657
Nonvested benefits 3,999 2,977
---------- ----------
Accumulated benefit obligation 45,960 32,634
Additional amounts related to
projected salary increases 31,009 30,278
---------- ----------
Projected benefit obligation 76,969 62,912
Fair value of plan assets, primarily
equity and fixed income securities (62,098) (47,403)
Unrecognized net gain 19,925 19,879
Unrecognized net transition asset 2,904 3,250
Unrecognized prior service cost (1,305) (1,416)
---------- ----------
Accrued pension cost recognized in the
balance sheets $ 36,395 $ 37,222
========== ==========
Actuarial present value of benefit obligations:
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
Postretirement
-----------------------------------------------
Medical Life
------------------- ----------------
1995 1994 1995 1994
---- ---- ---- ----
(In thousands)
Retirees and dependents $ 1,197 $ 755 $ 589 $ 524
Employees eligible to retire 3,751 2,481 - -
Other employees 11,095 14,884 3,991 4,812
-------- -------- ------- -------
Accumulated benefit obligation 16,043 18,120 4,580 5,336
Less:
Unrecognized net loss (gain) 3,983 56 (430) (866)
Unrecognized transition
obligation - 7,102 - 1,100
Unrecognized prior service
cost (1,661) - (732) -
-------- -------- ------- -------
Accrued liability recognized in the
balance sheets $ 13,721 $ 10,962 $ 5,742 $ 5,102
======== ======== ======= =======
</TABLE>
In 1995, Southern subsidiaries announced a cost sharing program for
postretirement benefits. The program establishes limits on amounts the
companies will pay to provide future retiree postretirement benefits.
This change reduced the Company's 1995 accumulated postretirement benefit
obligation by approximately $10.2 million.
- -----------------------------------------------------------------------------
<PAGE>
19E
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
-----------------------------------------------------------------------------
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 were:
1995 1994
---- ----
Discount 7.3% 8.0%
Annual salary increase 4.8% 5.5%
Long-term return on plan assets 8.5% 8.5%
An additional assumption used in measuring the accumulated postretirement
benefit obligation was a weighted average medical care cost trend rate of
9.8 percent for 1995, decreasing gradually to 5.3 percent through the year
2005 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, 1995, by $3.7
million and the aggregate of the service and interest cost components of
the net retiree cost by $.7 million.
Components of the plans' net cost are shown below:
Pension
-----------------------
1995 1994
---- ----
(In thousands)
Benefits earned during
the year $ 4,357 $ 4,236
Interest cost on projected
benefit obligation 4,897 4,276
Actual (return) loss on plan assets (11,018) 1,100
Net amortization and deferrals 5,962 (5,649)
-------- --------
Net pension cost $ 4,198 $ 3,963
======== ========
Of the above net pension cost recorded, $4.0 million in 1995 and $3.7
million in 1994 were recorded in operating expenses, and the remainder was
recorded in construction and other accounts.
- -----------------------------------------------------------------------------
<PAGE>
19F
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
-----------------------------------------------------------------------------
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
-------------- --------------
1995 1994 1995 1994
---- ---- ---- ----
(In thousands)
Benefits earned during
the year $1,165 $ 1,284 $ 325 $ 338
Interest cost on accumulated
benefit obligation 1,475 1,336 426 372
Amortization of transition
obligation over 20 years 374 374 58 58
Net amortization and deferrals - 30 (15) (4)
------ ------ ------- -----
Net postretirement cost $3,014 $ 3,024 $ 794 $ 764
====== ======= ====== ======
Net postretirement medical and life insurance costs recorded in 1995 and
1994 were charged to operating expenses.
4. SERVICE AND OPERATING AGREEMENTS
The Company, in accordance with its operating agreement and nuclear service
agreement with Alabama Power Company and Georgia Power Company,
respectively, 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.
The Company, in accordance with its service agreement with Southern Company
Services, Inc. ("SCS"), a subsidiary of Southern, receives the following
services at cost: general executive and advisory services, general
engineering, design engineering, payroll, 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.
The Company, in accordance with its service agreement with Southern
Development and Investment Group, Inc. ("SDIG"), a subsidiary of Southern,
may provide the following services at costs: general engineering; nuclear
plant operations; accounting and statistical; rates; budgeting; systems
and procedures; access to and use of facilities; training; general; and
other services with respect to the operation, maintenance or support of
nuclear power plants.
- -----------------------------------------------------------------------------
<PAGE>
19G
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
- -----------------------------------------------------------------------------
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
Details of the federal and state income tax provisions are as follows
(Note 1):
1995 1994
---- ----
(In thousands)
Total provision for income taxes:
Federal --
Currently payable $ (145) $ 2,648
Deferred - Current year (2,994) (5,609)
Reversal of
prior year 3,251 2,744
------- -------
112 (217)
------- -------
State --
Current payable 7 296
Deferred - Current Year (297) (564)
Reversal of
prior year 323 276
------- -------
33 8
------- -------
Federal and state
income taxes charged
to operations $ 145 $ (209)
======= =======
The tax effects of temporary differences between the carrying amounts of
assets and liabilities in the financial statements and their respective tax
bases, 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, 1995
-----------------------------------------------------------------------------
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.
- -----------------------------------------------------------------------------
1995 1994
---- ----
(In thousands)
Deferred tax liabilities:
Accelerated depreciation $ 174 $ 230
Other 421 150
-------- --------
Total 595 380
-------- --------
Deferred tax assets:
Deferred costs (23,318) (23,346)
Other (26) (18)
------- --------
Total (23,344) (23,364)
-------- --------
Net deferred tax assets (22,749) (22,984)
Portion included in current assets 876 3,504
------- -------
Accumulated deferred income taxes
in the consolidated balance sheets $(21,873) $(19,480)
======== ========
Deferred income taxes result from certain costs that are recognized for
income tax purposes in periods different from those used for book purposes.
The federal statutory income tax rate differs from the effective income tax
rate due to consolidated tax savings and the nondeductible portion of
various expenses.
7. RENTS
The Company subleases its office space from an affiliated company on a
month-to-month basis. Current monthly billing is approximately $109,958.
8. OUTSIDE SERVICES
The Company incurred expenses of approximately $63 million and $64 million
for 1995 and 1994, 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, 1995
- -----------------------------------------------------------------------------
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 1995 and 1994 is as follows:
1995 1994
---- ----
(In thousands)
Nuclear Regulatory Commission $ 5,802 $ 5,626
Electric Power Research Institute 946 1,207
Institute of Nuclear Power Operations 743 783
Other 1,961 1,133
------- -------
$ 9,452 $ 8,749
======= =======
- -----------------------------------------------------------------------------
<PAGE>
20
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(Thousands of Dollars)
- -------------------------------------------------------------------------------
SCHEDULE XV - STATEMENT OF INCOME
- -------------------------------------------------------------------------------
ACCOUNT DESCRIPTION CURRENT PRIOR
YEAR YEAR
- -------------------------------------------------------------------------------
INCOME
457 Services rendered to associate companies 203,589 193,290
458 Services rendered to nonassociate companies - -
421 Miscellaneous income or loss 337 291
------- -------
TOTAL INCOME 203,926 193,581
------- -------
EXPENSE
920 Salaries and wages 88,338 79,939
921 Office supplies and expenses 11,351 11,280
922 Administrative expense transferred
credit - -
923 Outside services employed 62,592 63,763
924 Property insurance 6 28
925 Injuries and damages 756 1,131
926 Employee pensions and benefits 16,188 16,050
928 Regulatory commission expense - -
930.1 General advertising expenses - -
930.2 Miscellaneous general expenses 10,761 9,285
931 Rents 2,072 1,814
932 Maintenance of structures and equipment 1,612 1,465
403 Depreciation and amortization expense 1,714 1,592
408 Taxes other than income taxes 5,935 5,728
409 Income taxes (138) 2,944
410 Provision for deferred income taxes 4,633 3,440
411 Provision for deferred income taxes -
credit (4,350) (6,593)
411.5 Investment tax credit - -
426.1 Donations 201 183
426.5 Other deductions 1,947 1,300
427 Interest on long-term debt - -
430 Interest on debt to associate companies 308 226
431 Other interest expense - 6
------- -------
TOTAL EXPENSE 203,926 193,581
------- -------
NET INCOME OR (LOSS) - -
------- -------
( ) Denotes red figure
- -------------------------------------------------------------------------------
<PAGE>
21
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
Alabama Power Company 102,405 12,633 103 115,141
Georgia Power Company 62,977 25,266 205 88,448
------- ------ --- -------
TOTAL 165,382 37,899 308 203,589
------- ------ --- -------
- -------------------------------------------------------------------------------
<PAGE>
22
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
- --------------------------------------------------------------------------------------------------------------------
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>
23
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(Thousands of Dollars)
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
- -----------------------------------------------------------------------------------------------------------------------------------
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
- -----------------------------------------------------------------------------------------------------------------------------------
920 SALARIES AND WAGES 73,703 14,635 88,338 - - - 73,703 14,635 - 88,338
921 OFFICE SUPPLIES AND
EXPENSES 6,715 4,764 11,479 - - - 6,715 4,764 (128) 11,351
922 ADMINISTRATIVE EXPENSE
TRANSFERRED - CREDIT - - - - - - - - - -
923 OUTSIDE SERVICES
EMPLOYED 53,505 9,087 62,592 - - 53,505 9,087 - 62,592
924 PROPERTY INSURANCE - 6 6 - - - - 6 - 6
925 INJURIES AND DAMAGES 218 538 756 - - - 218 538 - 756
926 EMPLOYEE PENSIONS AND
BENEFITS 13,089 2,971 16,060 - - - 13,089 2,971 128 16,188
928 REGULATORY COMMISSION
EXPENSE - - - - - - - - - -
930.1 GENERAL ADVERTISING
EXPENSES - - - - - - - - - -
930.2 MISCELLANEOUS GENERAL
EXPENSES 9,904 857 10,761 - - - 9,904 857 10,761
931 RENTS 1,306 766 2,072 - - - 1,306 766 - 2,072
932 MAINTENANCE OF
STRUCTURES AND
EQUIPMENT 1,423 189 1,612 - - - 1,423 189 - 1,612
403 DEPRECIATION AND
AMORTIZATION EXPENSE 269 1,445 1,714 - - - 269 1,445 - 1,714
408 TAXES OTHER THAN
INCOME TAXES 4,894 1,041 5,935 - - - 4,894 1,041 - 5,935
409 INCOME TAXES 145 145 - - - - 145 (283) (138)
410 PROVISION FOR DEFERRED
INCOME TAXES - - - - - - - - 4,633 4,633
411 PROVISION FOR DEFERRED
INCOME TAXES
CREDIT - - - - - - - (4,350) (4,350)
411.5 INVESTMENT TAX CREDIT - - - - - - - - - -
426.1 DONATIONS 4 197 201 - - - 4 197 - 201
426.5 OTHER DEDUCTIONS 352 1,595 1,947 - - - 352 1,595 - 1,947
427 INTEREST ON LONG -
TERM DEBT - - - - - - - - - -
431 OTHER INTEREST EXPENSE - - - - - - - - - -
</TABLE>
(Continued on page 23A)
<PAGE>
<TABLE>
<CAPTION>
23A
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -----------------------------------------------------------------------------------------------------------------------------------
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 = 165,382 38,236 203,618 165,382 38,236 203,618
COMPENSATION FOR
USE OF
EQUITY CAPITAL = - - - - - - - - - -
430 INTEREST ON DEBT TO
ASSOC. COMPANIES = - 308 308 - 308 - 308
TOTAL EXPENSES = 165,382 38,544 203,926 165,382 38,544 - 203,926
421 MISCELLANEOUS
NONOPERATING
INCOME = - (337) (337) - (337) - (337)
TOTAL COST OF
SERVICE = 165,382 38,207 203,589 165,382 38,207 203,589
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
* Reclassified for financial ( ) Denotes red figure
reporting purposes
**Does not include reclassifications
<PAGE>
<TABLE>
<CAPTION>
24
<S> <C> <C> <C> <C> <C> <C> <C> <C>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -----------------------------------------------------------------------------------------------------------------------------------
920 SALARIES AND WAGES 88,338 710 278 235 4,292 3,991 3,680
921 OFFICE SUPPLIES AND EXPENSES 11,351 132 58 73 569 504 568
922 ADMINISTRATIVE EXPENSE TRANSFERRED - CREDIT - - - - - - -
923 OUTSIDE SERVICES EMPLOYED 62,592 4,839 18 1,095 13,015 15,688 14,390
924 PROPERTY INSURANCE 6 - - - - - -
925 INJURIES AND DAMAGES 756 - - - - - -
926 EMPLOYEE PENSIONS AND BENEFITS 16,188 - - - - 1 -
928 REGULATORY COMMISSION EXPENSE - - - - - - -
930.1 GENERAL ADVERTISING EXPENSE - - - - - - -
930.2 MISCELLANEOUS GENERAL EXPENSES 10,761 916 3 - 107 13 6,747
931 RENTS 2,072 - - - 3 - -
932 MAINTENANCE OF STRUCTURES AND EQUIPMENT 1,612 - - - - - -
403 DEPRECIATION AND AMORTIZATION EXPENSE 1,714 - - - - - -
408 TAXES OTHER THAN INCOME TAXES 5,935 - - - - - -
409 INCOME TAXES (138) - - - - - -
410 PROVISION FOR DEFERRED INCOME TAXES 4,633 - - - - - -
411 PROVISION FOR DEFERRED INCOME TAXES - CREDIT (4,350) - - - - - -
411.5 INVESTMENT TAX CREDIT - - - - - - -
426.1 DONATIONS 201 171 - 9 - - 4
426.5 OTHER DEDUCTIONS 1,947 643 - 612 - - 1
427 INTEREST ON LONG-TERM DEBT - - - - - - -
430 INTEREST ON DEBT TO ASSOCIATE COMPANIES 308 - - - - - -
431 OTHER INTEREST EXPENSE - - - - - - -
------- ----- --- ----- ------ ------ ------
TOTAL EXPENSES 203,926 7,411 357 2,024 17,986 20,197 25,390
421 MISCELLANEOUS GAIN (337) - - - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
INSTRUCTION: Indicate each department or service
function. (see Instruction 01-3
General Structure of Accounting
System: Uniform System of Account).
- -----------------------------------------------------------------------------------------------------------------------------------
TOTAL COSTS = 203,589 7,411 357 2,024 17,986 20,197 25,390
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
( ) Denotes red figure
<PAGE>
25
ANNUAL REPORT OF Southern Nuclear Operating Company
For the Year Ended December 31, 1995
(Thousands of Dollars)
- -------------------------------------------------------------------------------
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
- -------------------------------------------------------------------------------
920 47,325 6,731 9,998 11,098
921 1,154 1,185 5,579 1,529
922 - - - -
923 956 1,641 7,985 2,965
924 - - - 6
925 1 - - 755
926 6 - 241 15,940
928 - - - -
930.1 - - - -
930.2 6 2,317 562 90
931 - - 827 1,242
932 - - 1,612 -
403 - - - 1,714
408 - - - 5,935
409 - - - (138)
410 - - - 4,633
411 - - - (4,350)
411.5 - - - -
426.1 - - (2)19
426.5 - 23 6 662
427 - - - -
430 - - - 308
431 - - - -
----- ------ ------ -----
Expenses 49,448 11,897 26,808 42,408
421 - - - (337)
- -------------------------------------------------------------------------------
Total Costs 49,448 11,897 26,808 42,071
- -------------------------------------------------------------------------------
( )Denotes red figure.
<PAGE>
26
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
<S> <C> <C> <C> <C> <C>
(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
- -----------------------------------------------------------------------------------------
Executive 710 - 710 - 6
Strategic Analysis 278 - 278 - 4
Governmental Affairs 235 - 235 - 3
Vogtle Project 4,292 - 4,292 - 72
Hatch Project 3,991 - 3,991 - 67
Farley Project 3,680 - 3,680 - 71
Farley Plant 47,325 - 47,325 - 843
Technical Services 6,731 - 6,731 - 102
Administrative
Services 9,998 - 9,998 - 130
Corporate General
(Accrual for
incentive pay
plan, etc.) 11,098 - 11,098 - -
------ ----- ------ ----- -----
TOTAL 88,338 - 88,338 - 1,298
------ ----- ------ ----- -----
- -----------------------------------------------------------------------------------------
</TABLE>
<PAGE>
27
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
Legal Services
Troutman Sanders LLP 600 Peachtree St. N.E., NA 2,860
Suite 5200
Atlanta, GA 30303-1810
Shaw, Pittman, Potts & 2300 N. Street, N.W. NA 1,585
Trowbridge Washington, D.C.
20037-1128
Balch & Bingham P. O. Box 306, NA 1,017
Birmingham, AL 35201
McCarter & English c/o Balch & Bingham NA 75
Trust Co. P.O. Box 306
Birmingham, AL 35201
Winston & Strawn 1400 L. St. N.W., NA 63
Washington, D.C.
20006-3502
Edlow 1666 Connecticut Ave., N.W. NA 21
Suite 201
Washington, D.C. 20009
Seven Other Items (less than Aggregate NA 11
$25,000 paid to other than
Associate Cos.) 5,632
-----
Auditing Services
- -----------------
Arthur Andersen LLP 133 Peachtree St., N.E., NA 137
Atlanta, GA 30303
137
---
(Continued on page 27A)
- -------------------------------------------------------------------------------
<PAGE>
27A
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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 42,533
Inc. Atlanta, GA 30346
U.S. Nuclear Regulatory Washington, DC 20555-0001 NA 1,405
Commission
Mescalero Fueling P.O. Box C4010 NA 1,025
Storage L.L.C. LaCrosse, WI 54602
Scientific Ecology P.O. Box 740400 NA 608
Atlanta, GA 31374
PLG, Inc. 4590 Macarthur Blvd., NA 163
Newport Beach, CA 92660
Lambert MacGill Thomas, Inc. 525 Aldo Avenue, NA 140
Santa Clara, CA
95054-2205
SONIC Systems International 1880 Dairy Ashford NA 103
Suite 207,
Houston, TX 77077
Universal Systems, Inc. 4350 Fair Labor Court NA 70
Fairfax, VA 22033
NUS Corporation 2650 McCormick Dr., NA 69
Clearwater, FL 34519
Rust Engineering 277 West Main Street NA 50
Niantic, CT 06357
CTS Power 4522 Morgan Plance NA 46
Liverpool, NY 13090
Bethco P.O. Box 102354 NA 41
Atlanta, GA 30368-2354
Cramer and Lindell Eng. 277 West Main Street NA 41
Niantic, CT 06357
(Continued on page 27B)
- -------------------------------------------------------------------------------
<PAGE>
27B
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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)
Science Application Drawer CS 198347 NA 37
Atlanta, GA 30384
Westinghouse P. O. Box 355 NA 30
Pittsburg, PA 15230
TLG Services 148 New Milford Rd. E, NA 31
Bridgewater, CT 06752
The Indus Group 60 Spear Street NA 27
San Francisco, CA 94105
Duke Engineering & Services, P. O. Box 65415 NA 25
Inc. Charlotte, NC 28265
Eight Other Items Aggregate NA (372)
-----
(less than $25,000 paid to
other than Associate Cos.) 46,072
------
Management Consulting Services
Nine Items Aggregate NA 74
(less than $25,000 paid to
other than Associate Cos.)
---
74
---
Continued on page 27C)
- -------------------------------------------------------------------------------
<PAGE>
27C
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
Southern Company Services, 64 Perimeter Center East, A 0,316
Inc. Atlanta, GA 30346
Graceba P.O. Box G NA 85
401 3rd Avenue
Ashford, AL 36312
ADIA Services P. O. Box 360161M, NA 79
Pittsburgh, PA 15250
Woods Technical P. O. Box 984, NA 65
Support Group Baxley, GA 31513
Red Mountain Internists 840 Montclair Rd., Ste. 321, NA 57
Birmingham, AL 35213
Fairview Clinic 1118-Ross Clark Circle NA 54
Suite 303
Dothan, AL 36301
Sensory Computing 105-W. Broad Street NA 28
Suite 500
Falls Church, VA 22046
Alabama Power Company P.O. Box 2641 A 27
Birmingham, AL
35291-01015
One Hundred Ninety-Seven Aggregate NA (34)
Other Items (less than
$25,000 paid to other
than Associate Cos.) ------
10,677
------
TOTAL 62,592
------
- -------------------------------------------------------------------------------
<PAGE>
28
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
Pensions 4,281
Employee's Group Insurance 4,883
Post-retirement Life Benefits 794
Post-retirement Medical Benefits 3,014
Post-employment Medical Benefits 106
Other Employee Benefits 499
Employee Saving Plan Contribution 2,611
------
TOTAL 16,188
------
- -------------------------------------------------------------------------------
<PAGE>
29
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
Not Applicable
- -------------------------------------------------------------------------------
<PAGE>
30
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
Assessments and Fees 5,813
Membership Dues 2,082
Nuclear Power Research Expenses 1,465
Fixed Asset Retirement 438
Employee Communications 30
Employee Activities 34
Nuclear Information Program 24
Management Services 40
Emergency Management 776
Other Expenses 59
------
TOTAL 10,761
------
- -------------------------------------------------------------------------------
<PAGE>
31
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
Office Rents 1,242
Computer Equipment and Software Rental 827
Other Rents 3
-----
TOTAL 2,072
-----
- -------------------------------------------------------------------------------
<PAGE>
32
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
Other than U.S. Government Taxes
Property 70
State Unemployment 23
State Franchise 19
------
Subtotal - Other 112
------
U. S. Government Taxes
Federal Insurance Contribution Act 5,744
Federal Unemployment 79
Subtotal - U.S. Government 5,823
-----
TOTAL 5,935
-----
- -------------------------------------------------------------------------------
<PAGE>
33
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
American Nuclear Society -
Public Education Program Support of Program 5
Auburn University Support of Program 8
Georgia Tech. Research Corp. Support of Program 53
Junior Achievement of
Greater Birmingham Support of Program 18
Northview High School Support of Program 4
Nuclear Energy Institute Cancer Program 5
Scholarship Program
Administrators, Inc. Support of Program 15
United Way Support of Program 45
33 Other Items (Less than $3,000) Health & Human Services 22
24 Other Items (Less than $3,000) Employee Matching Gift 10
15 Other Items (Less than $3,000) Educational Contributions 10
4 Other Items (Less than $3,000) Civic & Community 4
2 Other Items (Less than $3,000) Culture & Arts 1
2 Other Items (Less than $3,000) Special Sports Events 1
---
TOTAL 201
---
- -------------------------------------------------------------------------------
<PAGE>
34
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
(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
- -------------------------------------------------------------------------------
Civic and Political Activities
Labor, Travel, Membership
Dues and Other Expenses of
Company Employees Various Payees 550
Civic Activities Southern Company Services, Inc. 56
Legal Fees Winston & Strawn 17
Legal Fees Balch & Bingham 121
Lobbying Expenses and Training Nuclear Energy Institute 354
Other Civic/Political Various Payees 54
Employee Memberships
Membership Fee Shoal Creek Club 52
Membership Dues Old Overton Club 5
Membership Dues Robert Trent Jones Golf Club 4
Memberships and Dues Southern Company Services, Inc. 30
Memberships and Dues Various Associations 9
Other Deductions
Employee Stock Option Plan Contribution Southern Company Services, Inc. 476
Deferred Compensation Various Payees 15
Program Support Auburn University Foundation 10
Program Suppor Bruno's Memorial Classic 5
Olympic Tickets Georgia Power Company 59
Program Support Birmingham Bulls 3
Program Suppor University of AL at Birmingham 4
Program Support City Stages 4
Program Support University of Alabama 5
Educational & Charitable Contributions Southern Company Services, Inc. 87
Support of Community Activities and
Programs Various Payees 10
Other Various Payees 17
-----
TOTAL 1,947
-----
- -------------------------------------------------------------------------------
<PAGE>
35
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
------------------------------------------------------------------------------
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>
36
ANNUAL REPORT OF SOUTHERN NUCLEAR OPERATING COMPANY, INC.
For the Year Ended December 31, 1995
SCHEDULE XIX - FINANCIAL DATA SCHEDULE
(Thousands of Dollars)
If, at the time an annual report on this form is filed, the registrant is
required to submit this report and any amendments thereto electronically via
EDGAR, the registrant shall furnish a Financial Data Schedule. The Schedule
shall set forth the financial and other data specified below that are applicable
to the registrant on a consolidated basis.
Item No. Caption Heading
1. Net Service Company Property 4,108
2. Total Investments 1,822
3. Total Current and Accrued Assets 79,323
4. Total Deferred Debits 23,790
5. Balancing Amount For Total Assets and Other Debits 0
6. Total Assets and Other Debits 109,043
7. Total Proprietary Capital 1,624
8. Total Long-Term Debt 5,000
9. Notes Payable 0
10. Notes Payable to Associate Companies 0
11. Balancing Amount For Total Current and
Accrued Liabilities 98,050
12. Total Deferred Credits 3,774
13. Accumulated Deferred Income Taxes 595
14. Total Liabilities and Proprietary Capital 109,043
15. Services Rendered to Associate Companies 203,589
16. Services Rendered to Nonassociate Companies 0
17. Miscellaneous Income or Loss 337
18. Total Income 203,926
19. Salaries and Wages 88,338
20. Employee Pensions and Benefits 16,188
21. Balancing Amount For Total Expenses 99,400
22. Total Expenses 203,926
23. Net Income (Loss) 0
24. Total Expenses (Direct Costs) 165,382
25. Total Expenses (Indirect Costs) 38,207
26. Total Expenses (Total) 203,589
27. Number Of Personnel End of Year 1,298
<PAGE>
<TABLE>
<CAPTION>
37
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
December 31, 1995
------------------
<S> <C> <C> <C> <C>
| President* |
| and |
| Chief Executive|
| Officer |
|----------------|
| |
|---------------------------|--------------------------------|
| | |
------|----------------- ---------------- ------------------
| Exec Vice President | | Vice President| | Executive* |
| and | | and | | Vice President|
| Corporate Counsel | | Secretary | | Nuclear |
------------------------ ---------------- ------------------
| |
------|---------------------- -------------- |
| | | |
----------------- |----------------- ---------------------------------------------------------------------
| Administrative | | Technical | | Vice President | | Vice President | | Vice President |
| Services | | Services | | Farley | | Vogtle* | | Hatch* |
| Vice President | | Vice President | | Project | | Project | | Project |
|----------------| |----------------| |-----------------| |-----------------| |----------------|
| --------------- | | | |
| | | |-Nuc Fuel Manager |-Nuc Support |-Nuc Support* |-Nuc Support*
|___| Comptroller | | | Gen Manager | Gen Manager | Gen Manager
| | and Treasurer | |-Inspect & Test | | |
| |_______________| | Svcs Manager |-Safety Audit & |-Safety Audit & |-Safety Audit &
| | | Eng Rev Mgr Eng Rev Mgr Eng Rev Mgr
|-HR Manager |-Reg. Eng., Env |
| | Services Manager |-Nuclear Plant
|-S&H Manager | Gen Manager
| |-Corp Quality
|-Pub Affairs Mgr | Services Manager
| |
|-Security Mgr |-Nuc Tech Svcs
| | Gen Manager
|-Records Mgmt & |
| Gen Svcs Supv |-Project Engineer
| |
|-Matl Svcs Mgr |-Project Engineer
|
|-Concerns Prog Coord
</TABLE>
*Also a shared employee with Georgia Power Company.
<PAGE>
38
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
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 38A)
- -------------------------------------------------------------------------------
<PAGE>
38A
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
- -------------------------------------------------------------------------------
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>
39
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
------------------------------------------------------------------------------
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 1995.
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 5.82% to 6.27%.
Interest of $308,063.87 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 102,688.03
Georgia Power Company 205,375.84
----------
308,063.87
----------
- -------------------------------------------------------------------------------
<PAGE>
40
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1995
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, 1996
--------------
- -------------------------------------------------------------------------------
