Form U-13-60
Mutual and Subsidiary Service Companies
Revised February 7, 1980
ANNUAL REPORT
FOR THE PERIOD
Beginning January 1, 1999 and Ending December 31, 1999
---------------- -----------------
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
----------
Location of Principal Executive Office 40 Inverness Center Parkway
of Reporting Company Birmingham, Alabama 35242
--------------------------
Name, title, and address of
officer to whom correspondence concerning
this report should be addressed:
Comptroller, Treasurer, 40 Inverness Center Parkway
Kathleen S. King and Chief Financial Officer Birmingham, Alabama 35242
- ---------------- --------------------------- -------------------------
(Name) (Title) (Address)
Name of Principal Holding Company
Whose Subsidiaries are served by Reporting Company:
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.
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
DEPARTMENTAL ANALYSIS OF SALARIES 25
OUTSIDE SERVICES EMPLOYED 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
<PAGE>
<TABLE>
<CAPTION>
4
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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
------------------------
<S> <C> <C> <C>
101 Service company property (Schedule II) 8,263 10,932
107 Construction work in progress (Schedule II) - -
-------- --------
Total Property 8,263 10,932
-------- --------
108 Less accumulated provision for depreciation
and amortization of service company property (Schedule III) 7,024 9,100
-------- --------
Net Service Company Property 1,239 1,832
-------- --------
INVESTMENTS
-----------
123 Investments in associate companies (Schedule IV) - -
124 Other investments (Schedule IV) 1,176 1,461
-------- --------
Total Investments 1,176 1,461
-------- --------
CURRENT AND ACCRUED ASSETS
--------------------------
131 Cash - -
134 Special deposits - -
135 Working funds 121 111
136 Temporary cash investments (Schedule IV) 1,510 3,535
141 Notes receivable - -
143 Accounts receivable 32 75
144 Accumulated provision for uncollectible accounts - -
146 Accounts receivable from associate companies (Schedule V) 121,195 111,783
152 Fuel stock expenses undistributed (Schedule VI) - -
154 Materials and supplies - -
163 Stores expense undistributed (Schedule VII) - -
165 Prepayments 4,147 2,467
171 Interest and dividend receivable 23 21
174 Miscellaneous current and accrued assets (Schedule VIII) - -
-------- --------
Total Current and Accrued Assets 127,028 117,992
-------- --------
DEFERRED DEBITS
---------------
181 Unamortized debt expense - -
184 Clearing accounts - -
186 Miscellaneous deferred debits (Schedule IX) 139 345
188 Research, development, or demonstration
expenditures (Schedule X) - -
190 Accumulated deferred income taxes 35,787 30,771
-------- --------
Total Deferred Debits 35,926 31,116
-------- --------
TOTAL ASSETS AND OTHER DEBITS 165,369 152,401
-------- --------
- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
5
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(Thousands of Dollars)
- -------------------------------------------------------------------------------------------------------
SCHEDULE I - COMPARATIVE BALANCE SHEET
- -------------------------------------------------------------------------------------------------------
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31
CURRENT PRIOR
- -------------------------------------------------------------------------------------------------------
PROPRIETARY CAPITAL
-------------------
<S> <C> <C> <C>
201 Common stock issued (Schedule XI) 10 10
211 Miscellaneous paid-in-capital (Schedule XI) 2,943 2,039
215 Appropriated retained earnings (Schedule XI) - -
216 Unappropriated retained earnings (Schedule XI) - -
------- -------
Total Proprietary Capital 2,953 2,049
------- -------
LONG-TERM DEBT
-------------
223 Advances from associate companies (Schedule XII) - 5,000
224 Other long-term debt (Schedule XII) - -
225 Unamortized premium on long-term debt - -
226 Unamortized discount on long-term debt - -
------- -------
Total Long-Term Debt - 5,000
------- -------
OTHER NONCURRENT LIABILITIES
----------------------------
228 Accumulated provision for pensions and benefits 78,184 66,124
------- -------
CURRENT AND ACCRUED LIABILITIES
-------------------------------
231 Notes payable - -
232 Accounts payable 12,998 11,314
233 Notes payable to associate companies (Schedule XIII) 5,000 -
234 Accounts payable to associate companies (Schedule XIII) 18,317 18,752
236 Taxes accrued 1,382 1,443
237 Interest accrued - -
238 Dividends declared - -
241 Tax collections payable 6 6
242 Miscellaneous current and accrued liabilities (Schedule XIII) 41,292 43,112
------- -------
Total Current and Accrued Liabilities 78,995 74,627
------- -------
DEFERRED CREDITS
----------------
253 Other deferred credits 5,237 4,601
255 Accumulated deferred investment tax credits - -
------- -------
Total Deferred Credits 5,237 4,601
------- -------
282 ACCUMULATED DEFERRED INCOME TAXES - -
--------------------------------- ------- -------
TOTAL LIABILITIES AND PROPRIETARY CAPITAL 165,369 152,401
------- -------
- -------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
6
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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
- -------
<S> <C> <C> <C> <C> <C>
301 ORGANIZATION - - - - -
303 MISCELLANEOUS
INTANGIBLE
PLANT - - - - -
304 LAND & LAND
RIGHTS - - - - -
305 STRUCTURES AND
IMPROVEMENTS - - - - -
306 LEASEHOLD
IMPROVEMENTS 1,539 - 1,539 - -
307 EQUIPMENT 2/ 4,139 39 895 - 3,283
308 OFFICE
FURNITURE AND
EQUIPMENT 2/ 4,260 107 341 (22) 4,004
309 AUTOMOBILES,
OTHER
VEHICLES, AND
RELATED GARAGE
EQUIPMENT - - - - -
310 AIRCRAFT AND
AIRPORT
EQUIPMENT - - - - -
311 OTHER SERVICE
COMPANY
PROPERTY 3/ 994 16 34 - 976
------ -------- ----- ------ ------
SUB-TOTAL 10,932 162 2,809 (22) 8,263
------ -------- ----- ------- ------
107 CONSTRUCTION
WORK IN
PROGRESS - - - - -
------ ------- ----- ------ -----
TOTAL 10,932 162 2,809 (22) 8,263
------ ------- ----- ------ -----
() Denotes red figure
- ------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
7
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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 39 3,088
Mainframe Computer Equipment - 80
Office Automation Equipment - -
Telecommunication Equipment - 115
--- -----
39 3,283
--- -----
OFFICE FURNITURE AND EQUIPMENT
------------------------------
Office Furniture and Equipment 18 2,281
Miscellaneous Equipment 89 1,723
--- -----
107 4,004
--- -----
- ------------------------------------------------------------------------------
3/ DESCRIBE OTHER SERVICE COMPANY PROPERTY:
Computer software and licenses.
- ------------------------------------------------------------------------------
<PAGE>
<TABLE>
<CAPTION>
8
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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
- -------
<S> <C> <C> <C> <C> <C>
301 ORGANIZATION - - - - -
303 MISCELLANEOUS
INTANGIBLE PLANT - - - - -
304 LAND AND LAND
RIGHTS - - - - -
305 STRUCTURES AND
IMPROVEMENTS - - - - -
306 LEASEHOLD
IMPROVEMENTS 1,539 - 1,539 - -
307 EQUIPMENT 2,921 513 870 - 2,564
308 OFFICE
FURNITURE AND
EQUIPMENT 3,648 190 341 - 3,497
309 AUTOMOBILES,
OTHER
VEHICLES, AND
RELATED
GARAGE
EQUIPMENT - - - - -
310 AIRCRAFT AND
AIRPORT
EQUIPMENT - - - - -
311 OTHER SERVICE
COMPANY
PROPERTY 992 5 34 - 963
----- ----- ----- ------- ------
TOTAL 9,100 708 2,784 - 7,024
----- ----- ----- ------- -----
- -------------------------------------------------------------------------------------------------------------------
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, 1999
(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
Employee/Retiree Energy Loans 896 664
Employee Computer Loans 565 512
----- -----
1,461 1,176
----- -----
ACCOUNT 136 - TEMPORARY CASH INVESTMENTS
Money Market Mutual Funds 3,535 1,510
----- -----
TOTAL 4,996 2,686
----- -----
_______________________________________________________________________________
<PAGE>
10
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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
Alabama Power 47,833 47,082
Georgia Power 62,795 73,844
Southern Company Services 1,139 258
Savannah Electric 1 1
Southern Energy 15 10
------- --------
TOTAL 111,783 121,195
------- -------
<PAGE>
11
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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, 1999
(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, 1999
(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
Not Applicable
_______________________________________________________________________________
<PAGE>
14
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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 - 6
Undistributed Labor Accrual 42 94
Undistributed Foreign Withholding Employee Taxes 58 37
Undistributed FICA Tax 238 -
Sundry Delayed (3 items) 7 2
--- ---
Total 345 139
--- ---
_______________________________________________________________________________
<PAGE>
15
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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>
<TABLE>
<CAPTION>
16
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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
____________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C>
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 1,953
ACCOUNT 215 - APPROPRIATED RETAINED EARNINGS -
TOTAL 2,943
______________________________________________________________________________________________________________
INSTRUCTIONS: Give particulars concerning net income or (loss) during the year, distinguishing between
compensation for the use of capital owed or net loss remaining from servicing nonassociates
per the General Instructions of the Uniform System of Accounts. For dividends paid during
the year in cash or otherwise, provide rate percentage, amount of dividend, date declared
and date paid.
____________________________________________________________________________________________________________
BALANCE AT NET INCOME BALANCE AT
DESCRIPTION BEGINNING OR DIVIDENDS CLOSE
OF YEAR (LOSS) PAID OF YEAR
____________________________________________________________________________________________________________
ACCOUNT 216 - UNAPPROPRIATED RETAINED EARNINGS - - - -
TOTAL - - - -
_____________________________________________________________________________________________________________
</TABLE>
<PAGE>
<TABLE>
<CAPTION>
17
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(Thousands of Dollars)
___________________________________________________________________________________________________________________________________
SCHEDULE XII - LONG-TERM DEBT
___________________________________________________________________________________________________________________________________
INSTRUCTIONS: Advances from associate companies should be reported separately for advances on notes, and advances on open
account. Names of associate companies from which advances were received shall be shown under the class and series
of obligation column. For Account 224 - Other long-term debt provide the name of creditor company or organization,
terms of the obligation, date of maturity, interest rate, and the amount authorized and outstanding.
_________________________________________________________________________________________________________________________________
TERMS OF DATE BALANCE AT 1/ BALANCE
NAME OF CREDITOR OBLIG OF INTEREST AMOUNT BEGINNING OF ADDITIONS DEDUCTIONS AT
CLASS & MATURITY RATE AUTHORIZED OF YEAR CLOSE
SERIES OF YEAR
OF OBLIGATION
________________________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C> <C>
ACCOUNT 223 - ADVANCES FROM
ASSOCIATE COMPANIES:
ADVANCES ON NOTES:
On or
before
Southern Company 12/31/2000 Variable - 5,000 - 5,000 -
ADVANCES ON OPEN ACCOUNT: - - - - -
ACCOUNT 224 - OTHER LONG-TERM
DEBT: - - - - -
----- ----- ---- ----- ---
TOTAL - 5,000 - 5,000 -
----- ----- ---- ----- ---
___________________________________________________________________________________________________________________________________
1/ GIVE AN EXPLANATION OF DEDUCTIONS:
Since this note is due on or before December 31, 2000, it has been reclassified to account 233 Notes Payable to Associated
Companies (See Schedule XIII).
__________________________________________________________________________________________________________________________________
</TABLE>
<PAGE>
18
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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
Southern Company - 5,000
TOTAL - 5,000
______________________________________________________________________________
ACCOUNT 234 - ACCOUNTS PAYABLE TO ASSOCIATE COMPANIES
Alabama Power 1,828 1,668
Georgia Power 5,664 8,193
Southern Company Services 11,260 8,456
------ ------
TOTAL 18,752 18,317
------ ------
______________________________________________________________________________
ACCOUNT 242 - MISCELLANEOUS CURRENT AND ACCRUED
LIABILITIES
Employee Stock Option Plan Contribution Accrual 857 922
Vacation Pay Accrual 14,179 13,917
Overtime Pay Adjustment Accrual - 438
Performance Pay Plan Accrual 18,857 15,888
Productivity Improvement Plan Accrual 8,650 9,196
Performance Dividend Plan Accrual 130 277
Worker's Compensation Accrual 439 654
------ ------
TOTAL 43,112 41,292
------ ------
______________________________________________________________________________
<PAGE>
19
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
______________________________________________________________________________
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 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. On January 1, 1991, the Company entered into nuclear service
agreements with Georgia Power to support Plant Hatch and Plant Vogtle
and with Alabama Power to support Plant Farley.
Effective December 23, 1991, the Nuclear Regulatory Commission ("NRC")
license for Alabama Power's Plant Farley was amended to add the
Company as plant operator, and the Company assumed responsibility for
such operations pursuant to an operating agreement with Alabama Power.
The NRC licenses for Georgia Power'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. The Company also entered
into an operating agreement with Georgia Power for the operation of
Plant Wilson, a combustion turbine-powered plant located adjacent to
Plant Vogtle, effective March 22, 1997.
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 Company follows generally accepted accounting principles. 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. Effective January 1, 1998, the
Company adopted the Federal Energy Regulatory Commission's (FERC) Uniform
System of Accounts.
Financial Instruments
---------------------
The carrying amount of the Company's financial instruments covered under
Statement of Financial Accounting Standard ("SFAS") No. 107, "Disclosure
About Fair Value of Financial Instruments" approximates fair value at
December 31, 1999 and 1998.
______________________________________________________________________________
<PAGE>
19A
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
______________________________________________________________________________
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.
______________________________________________________________________________
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
lives or the lives of the respective leases. On retirement of assets, the
cost of such assets and related accumulated depreciation is removed from
the accounts. The gain or loss from the sale of assets, if any, is
credited or charged to income.
2. RETIREMENT BENEFITS
-------------------
The Company has a defined benefit, trusteed, pension plan that covers
substantially all regular employees. The Company provides certain
medical care and life insurance benefits for retired employees.
Substantially all employees may become eligible for such benefits when
they retire. The Company funds trusts to the extent deductible under
federal income tax regulations. The measurement date for plan assets
and obligations is September 30 for each year.
______________________________________________________________________________
<PAGE>
19B
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
______________________________________________________________________________
SCHEDULE XIV
NOTES TO FINANCIAL STATEMENTS
______________________________________________________________________________
INSTRUCTIONS: The space below is provided for important notes regarding the
financial statements or any account thereof. Furnish particulars
as to any significant contingent assets or liabilities existing
at the end of the year. Notes relating to financial statements
shown elsewhere in this report may be indicated here by
reference.
______________________________________________________________________________
Pension Plans
-------------
Changes during the year in the projected benefit obligations and in the
fair value of plan assets were as follows:
Projected
Benefits Obligations
---------------------
1999 1998
---- ----
(In thousands)
Balance at beginning of year $ 221,531 $ 187,068
Service cost 13,004 11,926
Interest cost 14,913 14,000
Benefits paid (1,999) (1,391)
Actuarial (gain) loss (16,381) 9,928
--------- ---------
Balance at end of year $ 231,068 $ 221,531
--------- ---------
Plan Assets
------------
1999 1998
---- ----
(In thousands)
Balance at beginning of year $ 260,174 $ 259,633
Actual return on plan assets 43,397 1,357
Employer contributions - -
Benefits paid (1,999) (1,391)
Receivables/payables due to transfers (1,057) 575
--------- ---------
Balance at end of year $ 300,515 $ 260,174
--------- ---------
The accrued pension costs recognized in the Comparative Balance Sheet
were as follows:
1999 1998
---- ----
(In thousands)
Funded status $ 69,447 $ 38,643
Unrecognized transition obligation (4,101) (4,748)
Unrecognized prior service cost 4,839 5,248
Unrecognized net gain (91,639) (56,284)
---------- ---------
Accrued liability recognized in the
Comparative Balance Sheet $ (21,454) $ (17,141)
---------- ---------
______________________________________________________________________________
<PAGE>
19C
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
______________________________________________________________________________
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.
______________________________________________________________________________
Components of the pension plan's net periodic cost were as follows:
1999 1998
---- ----
(In thousands)
Service cost $ 13,004 $ 11,926
Interest cost 14,913 14,000
Expected return on plan assets (21,525) (19,046)
Recognized net gain (1,842) (2,388)
Net amortization (237) (237)
-------- ---------
Net pension cost (income) $ 4,313 $ 4,255
-------- ---------
Postretirement Benefits
Changes during the year in the projected benefit obligations and in the
fair value of plan assets were as follows:
Projected
---------
Benefit Obligations
-------------------
1999 1998
---- ----
(In thousands)
Balance at beginning of year $63,879 $51,506
Service cost 2,723 2,258
Interest cost 4,284 3,841
Benefits paid (709) (465)
Actuarial (gain) loss (6,756) 6,740
------- -------
Balance at end of year $63,421 $63,880
------- -------
Plan Assets
-----------
1999 1998
---- ----
(In thousands)
Balance at beginning of year $ - $ -
Actual return on plan assets - -
Employer contributions 709 465
Benefits paid (709) (465)
------- -------
Balance at end of year $ - $ -
------- -------
______________________________________________________________________________
<PAGE>
19D
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
______________________________________________________________________________
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.
______________________________________________________________________________
The accrued postretirement costs recognized in the Comparative Balance
Sheet were as follows:
1999 1998
---- ----
(In thousands)
Funded status $(63,421) $(63,880)
Unrecognized transition obligation 7,268 7,788
Unrecognized prior service cost (2,508) (2,667)
Unrecognized net loss 5,454 12,591
Fourth quarter contribution 233 86
-------- --------
Accrued liability recognized in the
Comparative Balance Sheet $(52,974) $(46,082)
-------- --------
Components of the postretirement plans' net periodic cost were as follows:
1999 1998
---- ----
(In thousands)
Service cost $ 2,723 $ 2,258
Interest cost 4,284 3,841
Expected return on plan assets - -
Recognized net gain 381 156
Net amortization 360 360
------- -------
Net postretirement cost $ 7,748 $ 6,615
------- -------
The weighted average rates assumed in the actuarial calculations for both
the pension plans and postretirement benefits were:
1999 1998
---- ----
Discount 7.50% 6.75%
Annual salary increase 5.00% 4.25%
Long-term return on plan assets 8.50% 8.50%
An additional assumption used in measuring the accumulated postretirement
benefit obligation was a weighted average medical care cost trend rate
of 7.74 percent for 1999, decreasing gradually to 5.50 percent through
the year 2005, and remaining at that level thereafter. An annual
increase or decrease in the assumed medical care cost trend rate of 1
percent would affect the accumulated benefit obligation and the
service and interest cost components at December 31, 1999 as follows:
1 Percent 1 Percent
Increase Decrease
-------- --------
(In thousands)
Benefit obligation $4,085 $3,388
Service and interest costs 375 310
______________________________________________________________________________
<PAGE>
19E
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
______________________________________________________________________________
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.
______________________________________________________________________________
3. SERVICE AND OPERATING AGREEMENTS
--------------------------------
The Company, in accordance with its operating agreements with Alabama
Power and Georgia Power, provides operating and maintenance services,
new investment services, and fuel services at cost with respect to
nuclear generating plants.
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, purchasing, accounting and
statistical, finance and treasury, taxes, insurance and pensions,
corporate, budgeting, employee relations, systems and procedures, and
other services.
The Company, in accordance with its service agreement with Southern
Company Energy Solutions, a subsidiary of Southern, may provide the
following services at cost: 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.
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.
______________________________________________________________________________
<PAGE>
19F
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
______________________________________________________________________________
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.
______________________________________________________________________________
<TABLE>
<CAPTION>
5. INCOME TAXES
------------
Details of the federal and state income tax provisions (benefits) are as
follows (Note 1):
1999 1998
---- ----
(In thousands)
<S> <C> <C>
Total provision for income taxes:
Federal --
Currently payable $ 6,533 $ 3,623
Deferred - Current year (10,318) (3,777)
- Reversal of prior years 3,962 423
-------- --------
177 269
-------- --------
State --
Currently payable 699 109
Deferred - Current year (1,559) (1,170)
- Reversal of prior years 587 584
-------- --------
(273) (477)
-------- --------
Federal and state income taxes charged
(credited) to operations $ (96) $ (208)
-------- --------
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:
1999 1998
---- ----
(In thousands)
Deferred tax liabilities:
Allocated SCS and other benefits $ (2,053) $ (1,635)
Other (10) (91)
-------- ---------
Total (2,063) (1,726)
-------- ---------
Deferred tax assets:
Pensions and other benefits 39,691 32,383
Other 2,179 1,785
-------- --------
Total 41,870 34,168
-------- --------
Net deferred tax assets 39,807 32,442
Portion included in current assets (4,020) (1,671)
-------- --------
Accumulated deferred income taxes
in the comparative balance sheet $ 35,787 $ 30,771
-------- --------
</TABLE>
______________________________________________________________________________
<PAGE>
19G
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
______________________________________________________________________________
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.
______________________________________________________________________________
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 which have been allocated to the
Company, 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 $108,918.
7. OUTSIDE SERVICES
----------------
The Company incurred expenses of approximately $80 million and $81
million for 1999 and 1998, respectively, associated with services
provided by SCS (see Note 3 for description of services provided).
______________________________________________________________________________
<PAGE>
20
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(Thousands of Dollars)
_______________________________________________________________________________
SCHEDULE XV - STATEMENT OF INCOME
_______________________________________________________________________________
ACCOUNT DESCRIPTION CURRENT PRIOR
YEAR YEAR
_______________________________________________________________________________
INCOME
457 Services rendered to associate companies 405,948 407,101
458 Services rendered to non associate companies - -
419 Interest and dividend income 240 312
------- -------
TOTAL INCOME 406,188 407,413
------- -------
EXPENSE
500-559 Power production 290,034 290,401
560-579 Transmission 312 298
920 Salaries and wages 10,458 11,470
921 Office supplies and expenses 3,661 2,662
922 Administrative expense transferred - credit - -
923 Outside services employed 33,042 39,070
924 Property insurance 209 216
925 Injuries and damages 471 282
926 Employee pensions and benefits 31,005 29,709
928 Regulatory commission expense - -
930.1 General advertising expenses 1 -
930.2 Miscellaneous general expenses 163 316
931 Rents 1,558 1,706
935 Maintenance of structures and equipment 520 801
403 Depreciation and amortization expense 708 888
408 Taxes other than income taxes 15,058 14,668
409 Income taxes 7,232 3,732
410 Provision for deferred income taxes 5,430 3,380
411 Provision for deferred income taxes - credit (12,758) (7,320)
411.5 Investment tax credit - -
426.1 Donations 300 326
426.5 Other deductions 3,003 3,057
427 Interest on long-term debt - -
430 Interest on debt to associate companies 263 283
431 Other interest expense - 197
107 Construction work in process 15,518 11,272
186 Miscellaneous deferred debits - (1)
-------- --------
TOTAL EXPENSE 406,188 407,413
-------- -------
NET INCOME OR (LOSS) - -
-------- -------
( ) Denotes deficit or credit balance.
_______________________________________________________________________________
<PAGE>
21
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(Thousands of Dollars)
________________________________________________________________________________________________
ANALYSIS OF BILLING
ASSOCIATE COMPANIES
ACCOUNT 457
________________________________________________________________________________________________
DIRECT INDIRECT COMPENSATION TOTAL
NAME OF ASSOCIATE COMPANY COSTS COSTS FOR USE OF AMOUNT
CHARGED CHARGED CAPITAL BILLED
------- ------- ------- ------
457-1 457-2 457-3
________________________________________________________________________________________________
<S> <C> <C> <C> <C>
Alabama Power 121,897 13,080 88 135,065
Georgia Power 244,080 26,160 175 270,415
Gulf Power 1 - - 1
Mississippi Power 5 - - 5
Savannah Electric 16 - - 16
Southern Company Services 150 - - 150
Southern Company Energy Solutions 2 - - 2
Southern Energy 160 - - 160
Other Associated Companies 2 - - 2
Southern Company Generation 123 - - 123
Southern Energy Marketing 9 - - 9
------- ------ ------- -------
TOTAL 366,445 39,240 263 405,948
------- ------ ------- -------
________________________________________________________________________________________________
</TABLE>
<PAGE>
22
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(Thousands of Dollars)
_________________________________________________________________________________________________________________
ANALYSIS OF BILLING
NONASSOCIATE COMPANIES
ACCOUNT 458
_________________________________________________________________________________________________________________
<S> <C> <C> <C> <C> <C> <C>
DIRECT INDIRECT COMPENSATION EXCESS TOTAL
COST COST FOR USE TOTAL OR AMOUNT
NAME OF NONASSOCIATE CHARGED 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, 1999
(Thousands of Dollars)
- -----------------------------------------------------------------------------------------------------------------------------------
SCHEDULE XVI
ANALYSIS OF CHARGES FOR SERVICE
ASSOCIATE AND NONASSOCIATE COMPANIES
- -----------------------------------------------------------------------------------------------------------------------------------
INSTRUCTIONS: Total cost of service will equal for associate and nonassociate companies, the total amount billed under their
separate analysis of billing schedules.
- -----------------------------------------------------------------------------------------------------------------------------------
ASSOCIATE COMPANY NONASSOCIATE COMPANY TOTAL CHARGES
CHARGES CHARGES FOR SERVICE
- -----------------------------------------------------------------------------------------------------------------------------------
DESCRIPTION OF ITEMS DIRECT INDIRECT DIRECT INDIRECT DIRECT INDIRECT
COST COST TOTAL COST COST TOTAL COST COST TOTAL
- -----------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C>
500-559 POWER PRODUCTION 281,519 8,515 290,034 - - - 281,519 8,515 290,034
560-579 TRANSMISSION 312 - 312 - - - 312 - 312
920 SALARIES AND WAGES 3,547 6,911 10,458 - - - 3,547 6,911 10,458
921 OFFICE SUPPLIES AND
EXPENSES 4,282 (621) 3,661 - - - 4,282 (621) 3,661
922 ADMINISTRATIVE EXPENSE
TRANSFERRED - CREDIT - - - - - - - - -
923 OUTSIDE SERVICES
EMPLOYED 16,687 16,355 33,042 - - - 16,687 16,355 33,042
924 PROPERTY INSURANCE - 209 209 - - - 209 209
925 INJURIES AND DAMAGES 411 60 471 - - - 411 60 471
926 EMPLOYEE PENSIONS AND
BENEFITS 28,962 2,043 31,005 - - - 28,962 2,043 31,005
928 REGULATORY COMMISSION
EXPENSE - - - - - - - - -
930.1 GENERAL ADVERTISING
EXPENSES 1 - 1 - - - 1 - 1
930.2 MISCELLANEOUS GENERAL
EXPENSES 20 143 163 - - - 20 143 163
931 RENTS 223 1,335 1,558 - - - 223 1,335 1,558
935 MAINTENANCE OF
STRUCTURES
AND EQUIPMENT 421 99 520 - - - 421 99 520
403 DEPRECIATION AND
AMORTIZATION
EXPENSE 108 600 708 - - - 108 600 708
408 TAXES OTHER THAN
INCOME TAXES 14,109 949 15,058 - - - 14,109 949 15,058
409 INCOME TAXES 7,328 (96) 7,232 - - - 7,328 (96) 7,232
410 PROVISION FOR DEFERRED
INCOME TAXES 5,430 - 5,430 - - - 5,430 - 5,430
411 PROVISION FOR DEFERRED
INCOME TAXES - CREDIT (12,758) - (12,758) - - - (12,758) - (12,758)
411.5 INVESTMENT TAX CREDIT - - - - - - - - -
426.1 DONATIONS 25 275 300 - - - 25 275 300
426.5 OTHER DEDUCTIONS 300 2,703 3,003 300 2,703 3,003
427 INTEREST ON LONG -
TERM DEBT - - - - - - - - -
430 INTEREST ON DEBT TO
ASSOCIATE COMPANIES - 263 263 - - - - 263 263
431 OTHER INTEREST EXPENSE - - - - - - - - -
107 CONSTRUCTION WORK
IN PROGRESS 15,518 - 15,518 - - - 15,518 - 15,518
SUB-TOTAL EXPENSES 366,445 39,743 406,188 - - - 366,445 39,743 406,188
419 INTEREST AND DIVIDEND
INCOME - (240) (240) - - - - (240) (240)
TOTAL COST OF SERVICE 366,445 39,503 405,948 - - - 366,445 39,503 405,948
( ) Denotes deficit or credit balance.
- -----------------------------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
24A
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(Thousands of Dollars)
- ------------------------------------------------------------------------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
- -------------------------------------------------------------------------------
Total Strategic Corporate
DESCRIPTION Amount Executive Analysis Counsel &
Compliance
- ------------------------------------------------------------------------------
500-599 POWER PRODUCTION 290,034 1,581 430 170
560-579 TRANSMISSION 312 - - -
920 SALARIES AND WAGES 10,458 291 - 116
921 OFFICE SUPPLIES AND
EXPENSES 3,661 189 - 10
922 ADMINISTRATIVE
EXPENSE TRANSFERRED
-CREDIT - - - -
923 OUTSIDE SERVICES
EMPLOYED 33,042 43 9 1,066
924 PROPERTY
INSURANCE 209 - - -
925 INJURIES AND DAMAGES 471 - - -
926 EMPLOYEE PENSIONS
AND BENEFITS 31,005 1 - -
928 REGULATORY COMMISSION
EXPENSE - - - -
930.1 GENERAL ADVERTISING
EXPENSE 1 - - -
930.2 MISCELLANEOUS GENERAL
EXPENSES 163 78 - -
931 RENTS 1,558 - - -
935 MAINTENANCE OF
STRUCTURES
AND EQUIPMENT 520 - - -
403 DEPRECIATION AND
AMORTIZATION
EXPENSE 708 - - -
408 TAXES OTHER THAN
INCOME TAXES 15,058 - - -
409 INCOME TAXES 7,232 - - -
410 PROVISION FOR
DEFERRED
INCOME TAXES 5,430 - - -
411 PROVISION FOR
DEFERRED INCOME
TAXES-CREDIT (12,758) - - -
411.5 INVESTMENT TAX CREDIT - - - -
426.1 DONATIONS 300 270 - -
426.5 OTHER DEDUCTIONS 3,003 847 - 1
427 INTEREST ON
LONG-TERM DEBT - - - -
430 INTEREST ON DEBT TO
ASSOCIATE
COMPANIES 263 - - -
431 OTHER INTEREST EXPENSE - - - -
107 CONSTRUCTION WORK
IN PROGRESS 15,518 - - -
TOTAL EXPENSES 406,188 3,300 439 1,363
419 INTEREST AND
DIVIDEND INCOME (240) - - -
- -----------------------------------------------------------------------------
INSTRUCTION: Indicate each department or service function. (see Instruction
01-3 General Structure of Accounting System: Uniform System of
Account).
- ------------------------------------------------------------------------------
TOTAL COSTS = 405,948 3,300 439 1,363
-----------------------------------------------------------------------------
( ) Denotes deficit or credit balance
<PAGE>
24B
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(Thousands of Dollars)
- ---------------------------------------------------------------------------------------------------------------------------------
SCHEDULE XVII
SCHEDULE OF EXPENSE DISTRIBUTION
BY
DEPARTMENT OR SERVICE FUNCTION
- ---------------------------------------------------------------------------------------------------------------------------------
DESCRIPTION DEPARTMENT OR SERVICE FUNCTION
Govermental Vogtle Hatch Farley Plant Technical Administrative Corporate
Affairs Project Project Project Wilson Services Services General
& Plant & Plant & Plant
- ---------------------------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C> <C> <C> <C> <C>
500-599 POWER PRODUCTION - 81,625 85,778 83,130 592 13,019 8 23,701
560-579 TRANSMISSION
920 SALARIES AND
WAGES - - - 275 - - - 37
921 OFFICE SUPPLIES AND
EXPENSES (2) 110 102 - - - 8,022 1,819
922 ADMINISTRATIVE
EXPENSE
TRANSFERRED
-CREDIT 5 18 9 6 - 54 3,174 196
923 OUTSIDE SERVICES
EMPLOYED 66 116 102 112 - 104 18,844 12,58
924 PROPERTY
INSURANCE - - - - - - - 209
925 INJURIES AND DAMAGES - - - - - - - 471
926 EMPLOYEE PENSIONS
AND BENEFITS - 2 1 2 - - 180 30,819
928 REGULATORY COMMISSION
EXPENSE - - - - - - - -
930.1 GENERAL ADVERTISING
EXPENSE - - - - - - - -
930.2 MISCELLANEOUS GENERAL
EXPENSES - - - - - (21) 77 29
931 RENTS - - - - - - 223 1,335
935 MAINTENANCE OF
STRUCTURES
AND EQUIPMENT - - - - - - 520 -
403 DEPRECIATION AND
AMORTIZATION
EXPENSE - - - - - - - 708
408 TAXES OTHER THAN
INCOME TAXES - - - - - - - 15,058
409 INCOME TAXES - - - - - - - 7,232
410 PROVISION FOR
DEFERRED
INCOME TAXES - - - - - - - 5,430
411 PROVISION FOR
DEFERRED INCOME
TAXES-CREDIT - - - - - - - (12,758
411.5 INVESTMENT TAX CREDIT - - - - - - - -
426.5 OTHER DEDUCTIONS 901 7 1 11 - 5 27 1,203
427 INTEREST ON
LONG-TERM DEBT - - - - - - - -
430 INTEREST ON DEBT TO
ASSOCIATE
COMPANIES - - - - - - - 263
431 OTHER INTEREST EXPENSE - - - - - - - -
107 CONSTRUCTION WORK
IN PROGRESS - 634 3,933 6,694 - 2,489 - 1,768
TOTAL EXPENSES 970 82,519 89,940 90,238 592 15,650 31,077 90,100
419 INTEREST AND
DIVIDEND INCOME - - - - - - - (240
- --------------------------------------------------------------------------------------------------------------------------------
INSTRUCTION: Indicate each department or service function. (see Instruction 01-3 General Structure of Accounting System:
Uniform System of Account).
- --------------------------------------------------------------------------------------------------------------------------------
TOTAL COSTS = 970 82,519 89,940 90,238 592 15,650 31,077 89,860
</TABLE>
<PAGE>
25
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(Thousands of Dollars)
- -------------------------------------------------------------------------------------------------
DEPARTMENTAL ANALYSIS OF SALARIES
- -------------------------------------------------------------------------------------------------
DEPARTMENTAL SALARY EXPENSE
---------------------------
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
- -------------------------------------------------------------------------------------------------
<S> <C> <C> <C> <C>
Executive 935 - 935 - 6
Strategic Analysis 277 - 277 - 5
Corporate Counsel
& Compliance 225 - 225 - 2
Governmental Affairs 244 - 244 - 3
Vogtle Project and Plant 61,724 - 61,724 - 919
Hatch Project ant Plant 62,490 - 62,490 - 943
Farley Project ant Plant 53,801 - 53,801 - 876
Plant Wilson 557 - 557 - -
Technical Services 7,605 - 7,605 - 108
Administrative Services 8,033 - 8,033 - 134
Corporate General
(Accrual for
incentive pay
plan, etc.) 25,625 - 25,625 - -
------- ----- ------- ----- -----
TOTAL 221,516 - 221,516 - 2,996
------- ----- ------- ----- -----
</TABLE>
<PAGE>
26
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(Thousands of Dollars)
- --------------------------------------------------------------------------------------------------------------
OUTSIDE SERVICES EMPLOYED
- --------------------------------------------------------------------------------------------------------------
INSTRUCTIONS: Provide a breakdown by sub account of outside services employed.
If the aggregate amounts paid to any one payee and included within one sub
account is less than $100,000, only the aggregate number and amount of all such
payments included within the sub account need be shown. Provide a subtotal for
each type of service.
- --------------------------------------------------------------------------------------------------------------
RELATIONSHIP
"A"=
ASSOCIATE
"NA"=NON
FROM WHOM PURCHASED DESCRIPTION ASSOCIATE AMOUNT
- ---------------------------------------------------------------------------------------------------------
Legal Services
- --------------
<S> <C> <C> <C>
Balch & Bingham , LLP Legal fees and services NA 672
Troutman Sanders, LLP Legal fees and services NA 459
Winston & Strawn Legal fees and services NA 235
Arnold & Porter Legal fees and services NA 111
6 Other Items (less than $100,000) Aggregate NA 66
-----
1,543
-----
Auditing Services
- -----------------
Arthur Andersen, LLP Auditing services NA 77
-----
77
Engineering Services
- -------------------
Southern Company Services Design and general engineering services A 50,817
BCP Technical Services, Inc. Engineering services NA 576
Sonic Systems International, Inc. Provide system program revisions NA 506
Lambert MacGill Thomas, Inc. Engineering inspection services NA 192
Wihlen Consulting Services Engineering services NA 129
9 Other Items (less than $100,000) Aggregate NA 271
------
52,491
------
Management Consulting Services
- -----------------------------
20 Items (less than $100,000) Aggregate NA 283
------
283
------
(Continued on Page 26A)
- -----------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
26A
<TABLE>
<CAPTION>
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(Thousands of Dollars)
- --------------------------------------------------------------------------------------------------------------
OUTSIDE SERVICES EMPLOYED
- --------------------------------------------------------------------------------------------------------------
INSTRUCTIONS: Provide a breakdown by sub account of outside services employed.
If the aggregate amounts paid to any one payee and included within one sub
account is less than $100,000, only the aggregate number and amount of all such
payments included within the sub account need be shown. Provide a subtotal for
each type of service.
- --------------------------------------------------------------------------------------------------------------
RELATIONSHIP
"A"=
ASSOCIATE
"NA"=NON
FROM WHOM PURCHASED DESCRIPTION ASSOCIATE AMOUNT
- -----------------------------------------------------------------------------------------------------------------
<S> <C> <C> <C>
Other Services
- ---------------
Southern Company Services General services. See Note 3 in the A 29,154
Notes to Financial Statements
Datastream Systems, Inc. Computer services NA 2,770
GTS Duratek Health physics services NA 1,570
Black and Veatch, LLP Consulting NA 1,513
Alabama Power Mail and electricity services A 357
Jeffcoat and Associates, L.P. Building maintenance NA 333
Technology Resources, Inc. Computer services NA 250
Science Applications International Corp. Computer services NA 228
Integrated Technologies, Inc. Computer system services NA 153
Wells Fargo Guard Services Guard services NA 153
Pritchard Industries, S. E., Inc. Janitorial services NA 134
IceSolv Health physics services NA 128
Reeve Electric Co. Inc. Generator services NA 116
National Inspection and Consultants Outage technical services NA 111
Grace Computer Resources, Inc. Computer services NA 110
160 Other Items (less than $100,000) Aggregate NA 914
------
37,994
------
TOTAL 92,388
------
- -----------------------------------------------------------------------------------------------------------------
</TABLE>
<PAGE>
27
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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 5,330
Employee's Group Insurance 11,151
Post-Retirement Life Benefits 1,634
Post-Retirement Medical Benefits 6,114
Post-Employment Medical Benefits 309
Other Employee Benefits 343
Employee Savings Plan Contribution 6,124
-----------
TOTAL 31,005
----------
- -------------------------------------------------------------------------------
<PAGE>
28
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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
- -------------------------------------------------------------------------------
General Advertising Expense 1
----
TOTAL 1
----
<PAGE>
29
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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
- ----------------------------------------------------------------------------
Association Dues and Assessments 30
Nuclear Power Research Expenses 30
Fixed Asset Retirement 29
Employee Communications 30
Other Expenses 44
----
TOTAL 163
----
- ------------------------------------------------------------------------------
<PAGE>
30
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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 Building 1,172
Copiers 150
Warehouse Storage 13
Computer Equipment and Software 223
-----
TOTAL 1,558
-----
- ------------------------------------------------------------------------------
<PAGE>
31
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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 41
State Unemployment 70
State Franchise 15
-------
Subtotal - Other 126
-------
U. S. Government Taxes
----------------------
Federal Insurance Contribution Act 14,754
Federal Unemployment 178
-------
Subtotal - U.S. Government 14,932
-------
TOTAL 15,058
-------
- -------------------------------------------------------------------------------
<PAGE>
32
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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 3
American Heart Association Support of Program 3
Auburn University Support of Program 31
Baxley Tree Festival Support of Program 5
Big Brothers/Big Sisters Support of Program 3
Birmingham Southern College Support of Program 4
Breast Cancer Detection Center Support of Program 18
Cystic Fibrosis Foundation Support of Program 3
Dothan Convention and Visitors Bureau Support of Program 5
Georgia Institute of Technology Support of Program 3
Junior Achievement of Greater Birmingham Support of Program 6
National Academy of Engineering Support of Program 25
Scholarship Program Administrators, Inc. Support of Program 24
University of Alabama Support of Program 6
University of Florida Support of Program 25
United Way Support of Program 79
Vidalia Onion Festival Support of Program 5
74 Other Items (Less than $3,000) Education Contribution 25
27 Other Items (Less than $3,000) Health & Human Services 17
8 Other Items (Less than $3,000) Civic & Community 5
2 Other Item (Less than $3,000) Culture & Arts 3
9 Other Item (Less than $3,000) Other Donations 2
---
TOTAL 300
---
- -------------------------------------------------------------------------------
<PAGE>
33
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(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
- ------------------------------------------------------------------------------
Expenditures for Certain Civic,
Political, & Company, employee and
Related Activities administrative costs 1,355
Employee Stock Option Plan
Contribution Southern Company Services 924
Educational and Charitable
Contributions Southern Company Services 439
Other Miscellaneous Deductions Company expenses 285
-----
TOTAL 3,003
-----
- -------------------------------------------------------------------------------
<PAGE>
34
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
- ------------------------------------------------------------------------------
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 - 19G.
- ------------------------------------------------------------------------------
<PAGE>
35
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
(Thousands of Dollars)
- -------------------------------------------------------------------------------
SCHEDULE XIX
FINANCIAL DATA SCHEDULE
- -------------------------------------------------------------------------------
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 1,239
2. Total Investments 1,176
3. Total Current and Accrued Assets 127,028
4. Total Deferred Debits 35,926
5. Balancing Amount For Total Assets and Other Debits 0
6. Total Assets and Other Debits 165,369
7. Total Proprietary Capital 2,953
Other Noncurrent Liabilities 78,184
8. Total Long-Term Debt 0
9. Notes Payable 0
10. Notes Payable to Associate Companies 0
11. Balancing Amount For Total Current and Accrued Liabilities 78,995
12. Total Deferred Credits 5,237
13. Accumulated Deferred Income Taxes 0
14. Total Liabilities and Proprietary Capital 165,369
15. Services Rendered to Associate Companies 405,948
16. Services Rendered to Nonassociate Companies 0
17. Miscellaneous Income or Loss 240
18. Total Income 406,188
19. Salaries and Wages 10,458
20. Employee Pensions and Benefits 31,005
21. Balancing Amount For Total Expenses 364,725
22. Total Expenses 406,188
23. Net Income (Loss) 0
24. Total Expenses (Direct Costs) 366,445
25. Total Expenses (Indirect Costs) 39,503
26. Total Expenses Billed (Total) 405,948
27. Number Of Personnel End of Year 2,996
- -------------------------------------------------------------------------------
<PAGE>
36
<TABLE>
<CAPTION>
President &
Chief Executive Officer
|
Executive-------|
Assistant |
|
_______________________________________________________|____________________________________________________________
| | | | | | |
| | | | | | |
Admin Services Vice Technical Human Resources Executive Corp Govermental
Vice President Services SR VP* Vice President Sec/Exec Relations
President & Corporate Southern Company Nuclear Asst to Pres/ Manager
Counsel | Asst Tres
____________ ___________ ___________ ___________________________ |____________________ ________________ ___________
| | | |
| | __________________________|____________________ |
| | | | | | |
<S> <C> <C> <C> | <C> <C> <C>|
|-Comptroller, |-Strategic |-Nuclear Fuel Farley Project Vogtle Project Hatch Project -Federal
| Treas., & | Analsis | Manager Vice President Vice President Vice President Nuclear
| Chief |-Corp |-Inspect & | | | Eng Manager
| Fin.Officer Compliance/ | Test Svcs -Nuclear Plant -Nuclear Plant -Nuclear Plant Government
|-Employee Concerns | Manager General Manager General Manager General Manager Relations
| Relations Coordinator |-Reg Eng Env -Muclear Support -Nuclear Support -Nuclear Support Assistant
|-S & H | Svcs General Manager General Manager General Manager
| Manager | Manager -Safety Audit & -Safety Audit & -Safety Audit &
|-Security |-Corp Quality Eng. Rev. Manager & Eng.Rev. Manager & Eng. Rev. Manager
| Manager | Svcs -Steam Generator
|-Gen Services | Manager Replacement
| Supervisor |-Nuc Tech Svcs Proj Mgr
|-Material Gen Manager
| Services
| Manager
|-Corporate
| Communications
| Manager
|-HR Team
| Leader*
|-IR Business
| Analyst*
</TABLE>
<PAGE>
37
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
- -------------------------------------------------------------------------------
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.
At this time, the Company utilizes the plant basis for allocation due to its
simplicity and the comparability of amounts billed under this method to those
resulting from the application of the other approved methods.
- -------------------------------------------------------------------------------
<PAGE>
38
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
- -----------------------------------------------------------------------------
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 1999.
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 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 4.56% to 5.74%. Interest of $262,878 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 87,626
Georgia Power 175,252
-------
262,878
-------
<PAGE>
39
ANNUAL REPORT OF Southern Nuclear Operating Company, Inc.
For the Year Ended December 31, 1999
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/ K.S. King
By: K.S. King
(Signature of Signing Officer)
K.S. King, Comptroller, Treasurer and Chief Financial Officer
--------------------------------------------------------------
(Printed Name and Title of Signing Officer)
Date: April 30, 2000
