Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1996 and Ending December 31, 1996
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>
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.
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>
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
DEPARTMENTAL ANALYSIS OF SALARIES Account 920 25
OUTSIDE SERVICES EMPLOYED Account 923 26
EMPLOYEE PENSIONS AND BENEFITS Account 926 27
GENERAL ADVERTISING EXPENSES Account 930.1 28
MISCELLANEOUS GENERAL EXPENSES Account 930.2 29
RENTS Account 931 30
TAXES OTHER THAN INCOME TAXES Account 408 31
DONATIONS Account 426.1 32
OTHER DEDUCTIONS Account 426.5 33
- -------------------------------------------------------------------------------
<PAGE>
3
LISTING OF INSTRUCTIONAL FILING REQUIREMENTS
- -------------------------------------------------------------------------------
Schedule Page
Description of Schedules and Accounts Number Number
- -------------------------------------------------------------------------------
NOTES TO STATEMENT OF INCOME Schedule XVIII 34
FINANCIAL DATA SCHEDULE Schedule XIX 35
ORGANIZATION CHART 36
METHODS OF ALLOCATION 37
ANNUAL STATEMENT OF COMPENSATION FOR USE
OF CAPITAL BILLED 38
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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) 12,431 12,585
107 Construction work in progress (Schedule II) - -
-------- --------
Total Property 12,431 12,585
-------- --------
108 Less accumulated provision for depreciation
and amortization for service company property (Schedule III) 9,003 8,477
-------- --------
Net Service Company Property 3,428 4,108
-------- --------
INVESTMENTS
123 Investments in associates companies (Schedule IV) - -
124 Other investments (Schedule IV) 1,789 1,822
-------- --------
Total Investments 1,789 1,822
-------- --------
CURRENT AND ACCRUED ASSETS
131 Cash 176 104
134 Special deposits - -
135 Working funds 30 34
136 Temporary cash investments (Schedule IV) 1,000 2,630
141 Notes receivable - -
143 Accounts receivable 611 469
144 Accumulated provision for uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 81,138 76,032
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 11053
174 Miscellaneous current and accrued assets (Schedule VIII) - 1
-------- --------
Total Current and Accrued Assets 83,065 79,323
-------- --------
DEFERRED DEBITS
181 Unamortized debt expense - -
184 Clearing accounts - -
186 Miscellaneous deferred debits (Schedule IX) 264 446
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 26,062 23,344
-------- --------
Total Deferred Debits 26,326 23,790
-------- --------
TOTAL ASSETS AND OTHER DEBITS 114,608 109,043
--------- --------
- ------------------------------------------------------------------------------------------------------
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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) 1,859 1,614
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) - -
-------- --------
Total Proprietary Capital 1,869 1,624
-------- --------
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 8,598 8,354
233 Notes payable to associate companies (Schedule XIII) - -
234 Accounts payable to associate companies (Schedule XIII) 16,907 16,653
236 Taxes accrued 922 385
237 Interest accrued - 75
238 Dividends declared - -
241 Tax collections payable 4 7
242 Miscellaneous current and accrued liabilities (Schedule XIII) 76,537 72,576
-------- --------
Total Current and Accrued Liabilities 102,968 98,050
------- --------
DEFERRED CREDITS
253 Other deferred credits 3,717 3,774
255 Accumulated deferred investment tax credits - -
-------- --------
Total Deferred Credits 3,717 3,774
-------- --------
282 ACCUMULATED DEFERRED INCOME TAXES 1,054 595
--------------------------------- -------- --------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 114,608 109,043
------- -------
- -----------------------------------------------------------------------------------------------------
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ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 - - - - -
303 MISCELLANEOUS
INTANGIBLE PLANT - - - - -
304 LAND & LAND RIGHTS - - - - -
305 STRUCTURES AND
IMPROVEMENTS - - - - -
306 LEASEHOLD
IMPROVEMENTS 1,539 - - - 1,539
307 EQUIPMENT 2/ 5,855 728 916 - 5,667
308 OFFICE
FURNITURE AND
EQUIPMENT 2/ 4,117 115 88 - 4,144
309 AUTOMOBILES,
OTHER
VEHICLES, AND
RELATED GARAGE
EQUIPMENT - - - - -
310 AIRCRAFT AND
AIRPORT
EQUIPMENT - - - - -
311 OTHER SERVICE
COMPANY
PROPERTY 3/ 1,074 11 - (4) 1,081
------ ----- ----- -- ------
SUB-TOTAL 12,585 854 1,004 (4) 12,431
------ --- ----- -- ------
107 CONSTRUCTION
WORK IN
PROGRESS - - - - -
------ ----- ----- --- ------
TOTAL 12,585 854 1,004 (4) 12,431
------ --- ----- -- ------
() Denotes red figure
- -------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
7
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 714 5,179
Mainframe Computer Equipment - 160
Office Automation Equipment - 2
Telecommunication Equipment 14 326
--- -----
728 5,667
--- -----
OFFICE FURNITURE AND EQUIPMENT
Office Furniture and Equipment 8 2,235
Miscellaneous Equipment 107 1,909
--- -----
115 4,144
--- -----
- -------------------------------------------------------------------------------
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
Purchased computer software and licenses.
- -------------------------------------------------------------------------------
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ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(Thousands of Dollars)
- -------------------------------------------------------------------------------------------------------------------
SCHEDULE III
ACCUMULATED PROVISION FOR DEPRECIATION AND
AMORTIZATION OF SERVICE COMPANY PROPERTY
- -------------------------------------------------------------------------------------------------------------------
BALANCE AT ADDITIONS OTHER BALANCE AT
BEGINNING CHARGED TO CHANGES CLOSE OF
DESCRIPTION OF YEAR ACCOUNT RETIREMENTS 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 3,221 878 818 11 3,292
308 OFFICE
FURNITURE AND
EQUIPMENT 3,011 318 85 - 3,244
309 AUTOMOBILES,
OTHER VEHICLES,
AND RELATED
GARAGE
EQUIPMENT - - - - -
310 AIRCRAFT AND
AIRPORT
EQUIPMENT - - - - -
311 OTHER SERVICE
COMPANY
PROPERTY 706 223 1 - 928
----- ----- ---- - -----
TOTAL 8,477 1,419 904 11 9,003
----- ----- --- -- -----
- -------------------------------------------------------------------------------------------------------------------
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, 1996
(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 2 -
Employee Energy Loans (Empl/Retiree) 1,486 1,431
Employee Computer Loans 334 358
------ -----
1,822 1,789
----- -----
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
Eurodollar Time Deposit 2,630 1,000
----- -----
TOTAL 4,452 2,789
----- -----
- -------------------------------------------------------------------------------
<PAGE>
10
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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. 6,010 5,809
Alabama Power Company 50,780 54,517
Georgia Power Company 19,242 20,812
------ ------
TOTAL 76,032 81,138
------ ------
- -------------------------------------------------------------------------------
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, 1996
(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, 1996
(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, 1996
(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 -
--- --
TOTAL 1 -
--- ---
- -------------------------------------------------------------------------------
<PAGE>
14
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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
Undistributed Legal Fees Accrual and Reversal - 35
Undistributed Labor Accrual and Reversal 152 150
Payroll Deduction Timing Difference 180 -
Personal Access Data System-1996 Assessment 86 77
Computer License Tax 15 -
Sundry Delayed (2) 13 2
--- ---
Total 446 264
--- ---
- -------------------------------------------------------------------------------
<PAGE>
15
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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
- -------------------------------------------------------------------------------
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ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
For the Year Ended December 31, 1996
(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 869
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS -
------
TOTAL 1,859
- -----------------------------------------------------------------------------------------------------------------------------------
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 - - - -
- -----------------------------------------------------------------------------------------------------------------------------------
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ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
- -----------------------------------------------------------------------------------------------------------------------------------
For the Year Ended December 31, 1996
(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
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18
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(Thousands of Dollars)
- ---------------------------------------------------------------------------------------------------------------
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 7,332 7,424
Georgia Power Company 1,351 1,569
Southern Company Services, Inc. 7,970 7,914
------ -------
TOTAL 16,653 16,907
------ ------
- ---------------------------------------------------------------------------------------------------------------
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
Accrual for Pensions 36,395 36,264
Accumulated Provision for Pensions and Benefits-Post-Retirement
Life Insurance 5,742 6,236
Accumulated Provision for Pensions and Benefits-Post-Retirement
Medical Insurance 13,721 15,640
Accumulated Provision for Pensions and Benefits-Supplemental and Special 165 237
Employee Stock Option Plan Contribution 469 476
Vacation Pay Accrual 5,390 5,671
Performance Pay Plan Accrual 6,825 7,913
Productivity Improvement Plan Accrual 3,422 3,663
Worker's Compensation Awards 75 63
Accumulated Provision for Supplemental Benefits-ESP/ESOP 25 46
Accumulated Provision for Post Employment Benefits-Medical 347 328
------ -------
TOTAL 72,576 76,537
------ ------
- ---------------------------------------------------------------------------------------------------------------
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19
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
- ------------------------------------------------------------------------------
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 3.
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, as further discussed in Note 9.
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.
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.
- ------------------------------------------------------------------------------
<PAGE>
19A
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
- -------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
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, 1996 and
1995.
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 5 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, 1996
- ------------------------------------------------------------------------------
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.
- ------------------------------------------------------------------------------
2. 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.
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 $2,482,000 and $3,579,000 in 1996 and 1995, respectively.
In conformity with SFAS No. 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, to
be recognized over 20 years commencing in 1993.
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, resulting in the elimination of
transition obligation in 1996 and 1995.
- ------------------------------------------------------------------------------
<PAGE>
19C
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
- ------------------------------------------------------------------------------
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.
- ------------------------------------------------------------------------------
Funded 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:
Actuarial present value of benefit obligations:
Pension
_______________________
1996 1995
(In thousands)
Vested benefits $ 41,759 $ 41,961
Nonvested benefits 4,980 3,999
-------- ---------
Accumulated benefit obligation 46,739 45,960
Additional amounts related to projected
salary increases 34,140 31,009
-------- ---------
Projected benefit obligation 80,879 76,969
Fair value of plan assets, primarily equity
and fixed income securities (72,163) (62,098)
Unrecognized net gain 26,940 19,925
Unrecognized net transition asset 2,605 2,904
Unrecognized prior service cost (1,997) (1,305)
-------- ---------
Accrued pension cost recognized in the balance
sheets $ 36,264 $ 36,395
======== =========
Postretirement
----------------------------------
Medical Life
1996 1995 1996 1995
---- ---- ---- -----
(In thousands)
Retirees and dependents $ 1,888 $ 1,197 $ 833 $ 589
Employees eligible to retire 4,635 3,751 - -
Other employees 10,921 11,095 4,001 3,991
------- ------ ----- ------
Accumulated benefit obligation 17,444 16,043 4,834 4,580
Less:
Unrecognized net loss (gain) 4,332 3,983 (945) (430)
Unrecognized transition obligation - - - -
Unrecognized prior service cost (2,528) (1,661) (457) (732)
------ ------ ------ ------
Accrued liability recognized in the
balance sheets $15,640 $13,721 $6,236 $5,742
======= ======= ====== ======
- -------------------------------------------------------------------------------
<PAGE>
19D
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
- -------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
Weighted average rates assumed in the actuarial calculations were:
1996 1995
---- ----
Discount 7.8% 7.3%
Annual salary increase 5.3% 4.8%
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
9.3 percent for 1996, decreasing gradually to 5.8 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, 1996, by
approximately $1.8 million and the aggregate of the service and interest
cost components of the net retiree cost by approximately $100,000.
Components of the plans' net cost are shown below:
Pension
1996 1995
(In thousands)
Benefits earned during the year $ 4,656 $ 4,357
Interest cost on projected benefit obligation 5,733 4,897
Actual (return) on plan assets (7,714) (11,018)
Net amortization and deferrals 1,994 5,962
------- ------
Net pension cost $ 4,669 $ 4,198
======= ========
Of the above net pension cost recorded, $4.4 million in 1996 and $4.0
million in 1995 were recorded in operating expenses, and the remainder was
recorded in construction and other accounts.
- -------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
19E
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
- --------------------------------------------------------------------------------------------------------------------------------
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.
- --------------------------------------------------------------------------------------------------------------------------------
Postretirement
------------------------------------------------------
Medical Life
------------------------- -------------------------
1996 1995 1996 1995
------------ --------- ---------- ----------
(In thousands)
Benefits earned during the year $ 738 $1,165 $249 $325
Interest cost on accumulated benefit obligation 1,158 1,475 332 426
Amortization of transition obligation over 20 - 374 - 58
years
Net amortization and deferrals 49 - (44) (15)
------ ----- ----- ----
Net postretirement cost $1,945 $3,014 $537 $794
====== ====== ==== ====
Net postretirement medical and life insurance costs recorded in 1996 and
1995 were charged to operating expenses.
3. SERVICE AND OPERATING AGREEMENTS
The Company, in accordance with its operating agreement with Alabama Power
Company and nuclear service agreement with Georgia Power Company renders
the following nuclear-related services at cost: general executive and
advisory services; general operations management and technical services;
administrative services including procurement, accounting and statistical,
employee relations, and system and procedures services; strategic planning
and budgeting services; and other services with respect to business and
operations.
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.
- --------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
19F
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
- -------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
4. 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.
5. INCOME TAXES
Details of the federal and state income tax provisions are as follows
(Note 1):
1996 1995
--------- -------
(In thousands)
Federal --
Current payable $ 2,030 $ (145)
Deferred - Current year 3,451 (2,994)
Reversal of prior year (5,084) 3,251
------- --------
397 112
------- --------
State --
Current payable (360) 7
Deferred - Current year (786) (297)
Reversal of prior year 556 323
------- --------
(590) 33
------- --------
Federal and state income taxes charged
to operations $ (193) $ 145
======= ========
- -------------------------------------------------------------------------------
<PAGE>
19G
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
- ------------------------------------------------------------------------------
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.
- ------------------------------------------------------------------------------
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:
1996 1995
----------- --------
(In thousands)
Deferred tax liabilities:
Accelerated depreciation $ (216) $ (174)
Other (838) (421)
----------- -----------
Total (1,054) (595)
----------- -----------
Deferred tax assets:
Deferred costs 26,049 23,318
Other 13 26
--------- ----------
Total 26,062 23,344
---------- ----------
Net deferred tax assets 25,008 22,749
Portion included in current assets (1,315) (876)
----------- -----------
Accumulated deferred income taxes
in the balance sheets $ 23,693 $ 21,873
========== ==========
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.
6. RENTS
The Company subleases its office space from an affiliated company on a
month-to-month basis. Current monthly billing is approximately $94,910.
7. OUTSIDE SERVICES
The Company incurred expenses of approximately $66 million and $63 million
for 1996 and 1995, 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>
19H
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
- -------------------------------------------------------------------------------
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.
- -------------------------------------------------------------------------------
8. DUES AND ASSESSMENTS
Effective with the signing of the operating agreement with Alabama Power
Company, as discussed in Note 1, 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 1996 and 1995 is as follows:
1996 1995
---- ----
(In thousands)
Nuclear Regulatory Commission $5,397 $5,802
Nuclear Energy Institute 990 -
Electric Power Research Institute 833 946
Institute of Nuclear Power Operations 745 743
Other 1,971 1,961
------ -------
$9,936 $9,452
====== ======
9. SUBSEQUENT EVENTS
The Nuclear Regulatory Commission ("NRC") licenses for Georgia Power
Company's Plant Hatch and Plant Vogtle were amended to add the Company as
plant operator, and effective March 22, 1997, the Company assumed
responsibility for such operations pursuant to an operating agreement with
Georgia Power Company. The company also entered into an operating
agreement with Georgia Power Company for the operation of Plant Wilson, a
combustion turbine-powered plant located adjacent to Plant Vogtle,
effective March 22,1997.
- -------------------------------------------------------------------------------
<PAGE>
20
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(Thousands of Dollars)
- -------------------------------------------------------------------------------
SCHEDULE XV - STATEMENT OF INCOME
- -------------------------------------------------------------------------------
ACCOUNT DESCRIPTION CURRENT PRIOR
YEAR YEAR
- -----------------------------------------------------------------------------
INCOME
457 Services rendered to associate companies 201,735 203,589
458 Services rendered to nonassociate companies - -
421 Miscellaneous income or loss 298 337
-------- -------
TOTAL INCOME 202,033 203,926
------- -------
EXPENSE
920 Salaries and wages 86,987 88,338
921 Office supplies and expenses 11,084 11,351
922 Administrative expense transferred credit - -
923 Outside services employed 66,329 62,592
924 Property insurance 73 6
925 Injuries and damages 349 756
926 Employee pensions and benefits 14,094 16,188
928 Regulatory commission expense - -
930.1 General advertising expenses - -
930.2 Miscellaneous general expenses 9,936 10,761
931 Rents 2,038 2,072
932 Maintenance of structures and equipment 1,571 1,612
403 Depreciation and amortization expense 1,419 1,714
408 Taxes other than income taxes 5,874 5,935
409 Income taxes 1,670 (138)
410 Provision for deferred income taxes 4,134 4,633
411 Provision for deferred income taxes-credit (5,997) (4,350)
411.5 Investment tax credit - -
426.1 Donations 226 201
426.5 Other deductions 1,969 1,947
427 Interest on long-term debt - -
430 Interest on debt to associate companies 277 308
431 Other interest expense - -
-------- -------
TOTAL EXPENSE 202,033 203,926
------- -------
NET INCOME OR (LOSS) - -
-------- -------
( ) Denotes red figure
- -------------------------------------------------------------------------------
<PAGE>
21
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 104,868 11,992 92 116,952
Georgia Power Company 60,615 23,983 185 84,783
------- ------- ---- -------
TOTAL 165,483 35,975 277 201,735
------- ------- --- -------
- -------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C> <C>
- ---------------------------------------------------------------------------------------------------------------------------------
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
- ---------------------------------------------------------------------------------------------------------------------------------
For the Year Ended December 31, 1996
(Thousands of Dollars)
- ---------------------------------------------------------------------------------------------------------------------------------
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
- ---------------------------------------------------------------------------------------------------------------------------------
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
COST COST FOR USE TOTAL OR AMOUNT
NAME OF NONASSOCIATE CHARGED OF CAPITAL COST DEFICIENCY BILLED CHARGED
------- ---------- ---------- ---------- ---------- -------
458-1 458-2 458-3 458-4
- -------------------------------------------------------------------------------------------------
Not Applicable
Instruction: Provide a brief description of the services rendered to each nonassociate company:
None
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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
- ----------------------------------------------------------------------------------------------------------------------------------
920 SALARIES AND WAGES 73,936 13,051 86,987 - - - 73,936 13,051 - 86,987
921 OFFICE SUPPLIES AND EXPENSES 8,705 3,537 12,242 - - - 8,705 3,537 (1,158) 11,084
922 ADMINISTRATIVE EXPENSE
TRANSFERRED - CREDIT - - - - - - - - - -
923 OUTSIDE SERVICES EMPLOYED 53,832 12,497 66,329 - - 53,832 12,497 - 66,329
924 PROPERTY INSURANCE - 73 73 - - - - 73 - 73
925 INJURIES AND DAMAGES 174 175 349 - - - 174 175 - 349
926 EMPLOYEE PENSIONS AND BENEFITS 11,692 2,395 14,087 - - - 11,692 2,395 7 14,094
928 REGULATORY COMMISSION EXPENSE - - - - - - - - - -
930.1 GENERAL ADVERTISING EXPENSES - - - - - - - - - -
930.2 MISCELLANEOUS GENERAL EXPENSES 9,355 581 9,936 - - - 9,355 581 9,936
931 RENTS 887 - 887 - - - 887 - 1,151 2,038
932 MAINTENANCE OF STRUCTURES AND
EQUIPMENT 1,400 171 1,571 - - - 1,400 171 - 1,571
403 DEPRECIATION AND AMORTIZATION
EXPENSE 205 1,214 1,419 - - - 205 1,214 - 1,419
408 TAXES OTHER THAN INCOME TAXES 4,981 893 5,874 - - - 4,981 893 - 5,874
409 INCOME TAXES - 1,670 1,670 - - - - 1,670 - 1,670
410 PROVISION FOR DEFERRED INCOME TAXES - 4,134 4,134 - - - - 4,134 - 4,134
411 PROVISION FOR DEFERRED INCOME TAXES
CREDIT - (5,997) (5,997) - - - - (5,997) - (5,997)
411.5 INVESTMENT TAX CREDIT - - - - - - - - - -
426.1 DONATIONS - 226 226 - - - - 226 - 226
426.5 OTHER DEDUCTIONS 316 1,653 1,969 - - - 316 1,653 - 1,969
427 INTEREST ON LONG -TERM DEBT - - - - - - - - - -
431 OTHER INTEREST EXPENSE - - - - - - - - - -
(Continued on page 23A)
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 = 165,483 36,273 201,756 - - - 165,483 36,273 201,756
COMPENSATION FOR USE OF
EQUITY CAPITAL = - - - - - - - - - -
430 INTEREST ON DEBT TO ASSOC.
COMPANIES = - 277 277 - - - - 277 - 277
TOTAL EXPENSES = 165,483 36,550 202,033 - - - 165,483 36,550 - 202,033
421 MISCELLANEOUS NONOPERATING
INCOME = - (298) (298) - - - - (298) - (298)
TOTAL COST OF SERVICE = 165,483 36,252 201,735 - - - 165,483 36,252 - 201,735
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
( ) Denotes red figure
* Reclassified for financial reporting purposes.
**Does not include reclassifications
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 Farley Technical Administrative Corporate
Amount Executive Analysis Affairs Project Project Project Plant Services Services General
- ----------------------------------------------------------------------------------------------------------------------------------
920 SALARIES AND
WAGES 86,987 737 273 265 4,565 4,383 3,833 45,432 6,731 8,729 12,039
921 OFFICE SUPPLIES
AND EXPENSES 11,084 127 39 55 808 522 648 1,323 1,184 4,703 1,675
922 ADMINISTRATIVE
EXPENSE
TRANSFERRED-CREDIT - - - - - - - - - - -
923 OUTSIDE SERVICES
EMPLOYED 66,329 48 21 2,296 11,725 15,501 18,987 898 2,081 5,839 8,933
924 PROPERTY
INSURANCE 73 - - - - - - - - - 73
925 INJURIES AND
DAMAGES 349 - - - - - - - - - 349
926 EMPLOYEE PENSIONS
AND BENEFITS 14,094 - - - 10 - - 6 - 159 13,919
928 REGULATORY
COMMISSION
EXPENSE - - - - - - - - - - -
930.1 GENERAL
ADVERTISING
EXPENSE - - - - - - - - - - -
930.2 MISCELLANEOUS
GENERAL
EXPENSES 9,936 1,014 3 - 117 12 6,609 8 1,987 104 82
931 RENTS 2,038 - - - - - - - 2 885 1,151
932 MAINTENANCE OF
STRUCTURES
AND EQUIPMENT 1,571 - - - - - - - - 1,571 -
403 DEPRECIATION AND
AMORTIZATION
EXPENSE 1,419 - - - - - - - - - 1,419
408 TAXES OTHER THAN
INCOME TAXES 5,874 - - - - - - - - - 5,874
409 INCOME TAXES 1,670 - - - - - - - - - 1,670
410 PROVISION FOR
DEFERRED
INCOME TAXES 4,134 - - - - - - - - - 4,134
411 PROVISION FOR
DEFERRED
INCOME
TAXES-CREDIT (5,997) - - - - - - - - - (5,997)
411.5 INVESTMENT TAX
CREDIT - - - - - - - - - - -
426.1 DONATIONS 226 212 - - - - - - - 13 1
426.5 OTHER DEDUCTIONS 1,969 450 1 762 9 - 52 - 13 3 679
427 INTEREST ON
LONG-TERM
DEBT - - - - - - - - - - -
430 INTEREST ON DEBT
TO ASSOCIATE
COMPANIES 277 - - - - - - - - - 277
431 OTHER INTEREST
EXPENSE - - - - - - - - - - -
------ ----- ---- ----- ------ ------ ------ ------ ------ ------ ------
TOTAL EXPENSES 202,033 2,588 337 3,378 17,234 20,418 30,129 47,667 11,998 22,006 46,278
421 MISCELLANEOUS GAIN (298) - - - - - - - - - (298)
- ----------------------------------------------------------------------------------------------------------------------------------
INSTRUCTION: Indicate each department or service function. (see Instruction 01-3 General Structure of Accounting System:
Uniform System of Account).
- ----------------------------------------------------------------------------------------------------------------------------------
TOTAL COSTS = 201,735 2,588 337 3,378 17,234 20,418 30,129 47,667 11,998 22,006 45,980
- ----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
( ) Denotes red figure
<PAGE>
25
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(Thousands of Dollars)
- -------------------------------------------------------------------------------
DEPARTMENTAL ANALYSIS OF SALARIES
ACCOUNT 920
- -------------------------------------------------------------------------------
NAME OF DEPARTMENT INCLUDED IN AMOUNTS BILLED TO NUMBER
PERSONNEL
Indicate each TOTAL PARENT OTHER NON END OF
department or AMOUNT COMPANY ASSOCIATES ASSOCIATES YEAR
service function
- -------------------------------------------------------------------------------
Executive 737 - 737 - 7
Strategic Analysis 273 - 273 - 4
Governmental Affairs 265 - 265 - 3
Vogtle Project 4,565 - 4,565 - 60
Hatch Project 4,383 - 4,383 - 59
Farley Project 3,833 - 3,833 - 60
Farley Plant 45,432 - 45,432 - 829
Technical Services 6,731 - 6,731 - 108
Administrative Services 8,729 - 8,729 - 153
Corporate General
(Accrual for incentive
pay plan, etc.) 12,039 - 12,039 - -
------ ----- ------ ----- ------
TOTAL 86,987 - 86,987 - 1,283
------ ----- ------ ----- -----
- -------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
26
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 $100,000, 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 DESCRIPTION ASSOCIATE AMOUNT
- ---------------------------------------------------------------------------------------------------------
Legal Services
Troutman Sanders LLP Legal Fees and Services NA 1,655
Shaw, Pittman, Potts & Trowbridge Services rendered for NRC License issues. NA 208
Balch & Bingham Legal Fees and Services NA 505
Winston & Strawn Legal Fees regarding Industry issues NA 152
Other Items (less than $100,000 Aggregate NA 77
-----
paid to other than Associate Cos.) 2,597
-----
Auditing Services
Two other Item (less than $100,000
paid to other than Associate Cos.) Aggregate NA 74
--
74
(Continued on Page 26A)
- ---------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C>
26A
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 $100,000, 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 DESCRIPTION ASSOCIATE AMOUNT
- --------------------------------------------------------------------------------------------------------------
Engineering Services
Southern Company Services, Inc. Design and General Engineering services A 42,602
Scientific Ecology Services for waste compaction and storage NA 769
Westinghouse Engineering service NA 412
SONIC Systems International Provide system program revisions NA 329
PLG, Inc. Engineering, scientists management and NA 244
consulting service
Lambert MacGill Thomas, Inc. Engineering Inspection services NA 163
Eighteen Other Items (less than Aggregate NA (177)
-------
$100,000 paid to other than
Associate Cos.)
44,342
-------
Management Consulting Services
Six Items (less than $100,000 Aggregate NA 40
--
paid to other than Associate Cos.)
40
--
(Continued on page 26B)
- --------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
26B
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 $100,000, 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 DESCRIPTION ASSOCIATE AMOUNT
- -----------------------------------------------------------------------------------------------------------------
Other Services
Southern Company Services, Inc. General Services. See Note 3 in the A 18,610
Notes to Financial Statements
Graceba Computer system services NA 110
One Hundred and Six Other items Aggregate NA 556
------
(less than $100,000 paid to other
than Associate Cos.)
19,276
TOTAL 66,329
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 4,762
Employee's Group Insurance 3,954
Post-retirement Life Benefits 537
Post-retirement Medical Benefits 1,945
Other Employee Benefits 326
Employee Saving Plan Contribution 2,570
------
TOTAL 14,094
- ------------------------------------------------------------------------------
<PAGE>
28
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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>
29
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 5,409
Membership Dues 2,390
Nuclear Power Research Expenses 1,078
Fixed Asset Retirement 82
Employee Communications 30
Employee Activities 32
Nuclear Information Program 1
Management Services 9
Emergency Management 868
Other Expenses 37
------
TOTAL 9,936
======
- ------------------------------------------------------------------------------
<PAGE>
30
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 1,151
Computer Equipment and Software Rental 887
-----
TOTAL 2,038
=====
- ------------------------------------------------------------------------------
<PAGE>
31
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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
Environmental 1
Property 59
State Unemployment 21
State Franchise 19
Subtotal - Other 100
------
U. S. Government Taxes
Federal Insurance Contribution Act 5,699
Federal Unemployment 75
Subtotal - U.S. Government 5,774
-----
TOTAL 5,874
- ------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C>
32
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 Cancer Association Support of Program 4
American Nuclear Society - Public Education Program Support of Program 7
Auburn University Support of Program 4
Breast Cancer Detection Center Support of Program 26
Georgia Tech. Research Corp. Support of Program 53
Scholarship Program Administrators, Inc. Support of Program 12
United Way Support of Program 70
42 Other Items (Less than $3,000) Health & Human Services 25
33 Other Items (Less than $3,000) Employee Matching Gift 12
9 Other Items (Less than $3,000) Educational Contributions 6
5 Other Items (Less than $3,000) Civic & Community 7
---
TOTAL 226
- -------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C>
33
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
(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 630
Civic Activities Southern Company Services, Inc. 59
Legal Fees Balch & Bingham 80
Lobbying Expenses and Training Nuclear Energy Institute 248
Other Civic/Political Various Payees 62
Program Support Birmingham Area Chamber of Commerce 3
Employee Memberships
Membership Dues Old Overton Club 3
Membership Dues Robert Trent Jones Golf Club 4
Membership Dues Summit Club 3
Memberships and Dues Various Associations 6
Other Deductions
Employee Stock Option Plan Contribution Southern Company Services, Inc. 481
Deferred Compensation Various Payees 6
Program Support Auburn University Foundation 10
Program Support Bruno's Memorial Classic 5
Olympic Tickets and Support Georgia Power Company 136
Program Support Birmingham Bulls 3
Program Support University of AL at Birmingham 4
Program Support City Stages 5
Program Support University of Alabama 13
Program Support Birmingham Barons 11
Program Support Birmingham Broadway Series 4
Educational & Charitable Contributions, etc. Southern Company Services, Inc. 120
Support of Community Activities and Programs Various Payees 16
Other Various Payees 57
-----
TOTAL 1,969
- ------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
34
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
- -------------------------------------------------------------------------------
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 - 19H.
- -------------------------------------------------------------------------------
<PAGE>
35
ANNUAL REPORT OF SOUTHERN NUCLEAR OPERATING COMPANY, INC.
For the Year Ended December 31, 1996
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 3,428
2. Total Investments 1,789
3. Total Current and Accrued Assets 83,065
4. Total Deferred Debits 26,326
5. Balancing Amount For Total Assets and Other Debits 0
6. Total Assets and Other Debits 114,608
7. Total Proprietary Capital 1,869
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 102,968
12. Total Deferred Credits 3,717
13. Accumulated Deferred Income Taxes 1,054
14. Total Liabilities and Proprietary Capital 114,608
15. Services Rendered to Associate Companies 201,735
16. Services Rendered to Nonassociate Companies 0
17. Miscellaneous Income or Loss 298
18. Total Income 202,033
19. Salaries and Wages 86,987
20. Employee Pensions and Benefits 14,094
21. Balancing Amount For Total Expenses 100,952
22. Total Expenses 202,033
23. Net Income (Loss) 0
24. Total Expenses (Direct Costs) 165,483
25. Total Expenses (Indirect Costs) 36,252
26. Total Expenses (Total) 201,735
27. Number Of Personnel End of Year 1,283
<PAGE>
<TABLE>
<CAPTION>
<S> <C> <C> <C> <C> <C>
ANNUAL REPORT OF SOUTHERN NUCLEAR OPERATING COMPANY, INC.
December 31, 1996
President &*
Chief Executive Officer
------------------------ Human
Vice Executive* Resources VP Exec Asst
Exec. Vice President President & Vice President The to Pres/
& Corp. Counsel Secretary Nuclear Southern Ast. Corp
Company Sec/Trea.
- - - - -
Federal Admin Technical Strategic Vice Vice Vice
Nuclear Governmental Services Services Analysis President President* President*
Energy Regulatory Vice Vice Farley Vogtle Hatch
Manager Manager President President Project Project Project
- --------------------------------------------- ---------- -------- -------- --------
- - -
Comptroller & Nuclear Nuc Nuc Nuclear
Treasurer Fuel Support Support Support
HR Manager Manager Gen. Gen. Gen.
S & H Manager Reg Eng. Manager Manager Manager
Public Affairs Services Safety Safety Safety
Mgr. Manager Audit & Audit & Audit &
Security Mgr. Corp. Quality Eng Eng Eng
Records Mgmt.& Services Rev Mgr Rev Mgr Rev Mgr.
Gen Svs Supv. Manager Nuclear Nuclear Nulcear
Materials Svcs. General Plant** Plant** Plant**
Supv. Manager Gen. Gen. Gen.
Concerns Prog. Nu Tech Svcs Manager Manager Manager
Coord. General
Manager
Project
Engineer
Project
Engineer
</TABLE>
*Also a shared employee with Georgia Power Company
**Georgia Power Company employee only
<PAGE>
37
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
- -------------------------------------------------------------------------------
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
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>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
- -------------------------------------------------------------------------------
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 1996.
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 5.26% to 5.81%.
Interest of $276,663.91 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 92,221.23
Georgia Power Company 184,442.68
----------
276,663.91
==========
- -------------------------------------------------------------------------------
<PAGE>
39
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1996
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 28, 1997
- ------------------------------------------------------------------------------
