SECURITIES AND EXCHANGE COMMISSION
Washington, D. C. 20549
FORM U-1
APPLICATION OR DECLARATION
under
The Public Utility Holding Company Act of 1935
THE SOUTHERN COMPANY SOUTHERN NUCLEAR OPERATING COMPANY, INC.
64 Perimeter Center East 40 Inverness Center Parkway
Atlanta, Georgia Birmingham, Alabama 35204
(Name of company or companies filing this statement
and addresses of principal executive offices)
THE SOUTHERN COMPANY
(Name of top registered holding company parent
of each applicant or declarant)
Tommy Chisholm, Secretary John O. Meier, Secretary
The Southern Company Southern Nuclear Operating Company, Inc.
64 Perimeter Center East 40 Inverness Center Parkway
Atlanta, Georgia 30346 Birmingham, Alabama 35204
(Names and addresses of agents for service)
The Commission is requested to mail signed copies of all orders,
notices and communications to:
W. L. Westbrook Walter M. Beale, Jr., Esq.
Financial Vice President Balch & Bingham
The Southern Company 1901 Sixth Avenue North
64 Perimeter Center East Suite 2600
Atlanta, Georgia 30346 Birmingham, Alabama 35203
John D. McLanahan, Esq.
Troutman Sanders
600 Peachtree Street
Suite 5200
Atlanta, Georgia 30308-2216
<PAGE>
INFORMATION REQUIRED
Item 1. Description of Proposed Transactions.
Southern Nuclear Operating Company, Inc. ("Southern
Nuclear") is a wholly-owned subsidiary of The Southern Company
("Southern"), a registered holding company under the Public
Utility Holding Company Act of 1935, as amended (the "Act").
Southern Nuclear provides, pursuant to previous Commission
authority (HCAR No. 25212, dated December 14, 1990 and HCAR No.
25429, dated December 13, 1991), nuclear operation services,
technical services and administrative services (sometimes
referred to hereinafter collectively as "nuclear services") to
affiliates of the Southern electric system. Presently, Southern
Nuclear provides nuclear services to two of the operating
companies of the Southern electric system. Alabama Power Company
("APC") owns, and Southern Nuclear is licensed to operate, the
Farley Nuclear Plant Units 1 and 2. Georgia Power Company
("GPC") is a co-owner of and is licensed to operate the Hatch
Nuclear Plant Units 1 and 2 and Vogtle Nuclear Plant Units 1 and
2.
Southern Nuclear seeks authority through March 31, 1998
to borrow from Southern or lenders other than Southern. The
aggregate principal amount of any advances to Southern Nuclear by
Southern or lenders other than Southern will not exceed
$10,000,000 at any time outstanding.
Borrowings from Southern will have maturities not to
exceed 10 years and will accrue interest at a rate equal to the
average effective interest cost of Southern's outstanding
obligations for borrowed money on the first day of each month, or
<PAGE>
- 2 -
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 the 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 in effect at a nationally recognized U. S.
bank to be designated by Southern. Unless authorized by the
Commission, loans obtained from lenders other than Southern will
have maturities not to exceed 10 years and will accrue interest
at a rate not to exceed the prime rate plus 2% for variable rate
loans and the prime rate at the time of borrowing plus 3% for
fixed rate loans. Such loans may be secured or unsecured and may
be guaranteed by Southern.
Southern proposes on or prior to March 31, 1998, to
make up to $5,000,000 in open account advances to Southern
Nuclear from time to time, which, at the option of Southern, may
be converted into capital contributions or additional shares of
common stock of Southern Nuclear. To the extent any such
advances are converted to equity, the borrowing authority sought
herein shall be reduced by the amount of the advances so
converted, so that the total capitalization of Southern Nuclear
does not exceed $11.6 million (including its present common
equity of $1.6 million) without further authorization from the
Commission. The rate of return on Southern Nuclear's common
equity capital will not exceed the simple average of the most
recent rates of return allowed by the Alabama Public Service
Commission and the Georgia Public Service Commission on the
common equity capital of APC and GPC, respectively.
<PAGE>
- 3 -
The authority sought herein is for the purpose of
providing funds to be used by Southern Nuclear in connection with
its working capital needs, including the purchase of equipment
and office furniture, leasehold improvements and loans to
employees for purposes such as residential energy programs,
purchases of computers and employee transfer expenses. (See
Exhibit G filed herewith.)
Item 2. Fees, Commission and Expenses.
The estimated fees, commissions and expenses to be
incurred in connection herewith are as follows:
Form U-1 filing fee . . . . $2,000
Legal fees . . . . . . . . 5,000
Miscellaneous . . . . . . . 1,000
Total . . . . . . . . . . . $8,000
Item 3. Applicable Statutory Provisions.
The issuance and sale by Southern Nuclear of shares of
its capital stock are subject to the provisions of Sections 6(a)
and 7 of the Act.
The acquisition by Southern of shares of the capital
stock of Southern Nuclear is subject to Sections 9(a) and 10 of
the Act.
The making of open account advances by Southern to
Southern Nuclear is subject to Section 12(b) of the Act and Rule
45 thereunder.
The conversion by Southern of open account advances
into capital contributions or equity of Southern Nuclear is
subject to Section 12(b) of the Act and Rule 45(a) thereunder.
<PAGE>
- 4 -
The borrowings by Southern Nuclear from lenders is
subject to the provisions of Sections 6(a) and 7 of the Act.
Rule 54 is also applicable to the proposed
transactions. In this regard, however, Southern Nuclear does not
currently hold any interest in any "exempt wholesale generator"
or "foreign utility company," and the transactions proposed in
this Application or Declaration do not in any way concern or
relate to an investment in or other involvement with any "exempt
wholesale generator" or "foreign utility company."
Under Rule 54, in determining whether to approve the
issue or sale of a security by a registered holding company for
purposes other than the acquisition of an "exempt wholesale
generator" or "foreign utility company", or other transactions by
such registered holding company or its subsidiaries other than
with respect to "exempt wholesale generators" or "foreign utility
companies", the Commission shall not consider the effect of the
capitalization or earnings of any subsidiary which is an "exempt
wholesale generator" or a "foreign utility company" upon the
registered holding company system if Rules 53(a), (b) and (c) are
satisfied. In that regard, assuming the consummation of the
transactions contemplated in this Application or Declaration, all
of the conditions set forth in Rule 53(a) are and will be
satisfied and none of the conditions set forth in Rule 53(b)
exists or, as a result thereof, will exist.
Rule 53(a)(1): Assuming full utilization by Southern
of $500 million of proceeds of the sale of its common stock (as
authorized in HCAR Nos. 25980 and 26098) and/or the use of up to
$500 million of the proceeds of short-term borrowings and/or
<PAGE>
- 5 -
commercial paper sales (as authorized in HCAR No. 26004), to make
investments in "exempt wholesale generators" and "foreign utility
companies," and/or the guaranty by Southern of up to $500 million
of securities of any "exempt wholesale generators" or "foreign
utility companies" (as authorized by HCAR No. 25980), the
combination of which may not exceed $500 million, Southern's
"aggregate investment" in such entities would be approximately
26.9% of "consolidated retained earnings," as defined in Rule
53(a)(1)(ii), of Southern, determined as follows: At September
30, 1994, Southern had invested, directly or indirectly, an
aggregate of $409.5 million in "exempt wholesale generators" and
"foreign utility companies," 1 and had utilized for this purpose
approximately $97.7 million of the authorized proceeds of common
stock, debt and/or guarantees. The average of the consolidated
retained earnings of Southern reported on Form 10-K or Form 10-Q,
as applicable, for the four consecutive quarters ended September
30, 1994, is $3.019 billion. Accordingly, Southern's "aggregate
investment," on a pro forma basis, expressed as a percentage of
"consolidated retained earnings," is approximately 26.9% ($409.5
million + $402.3 million divided by $3.019 billion).
Rule 53(a)(2): Southern maintains books and records
enabling it to identify investments in and earnings from each
"exempt wholesale generator" and "foreign utility company" in
which it directly or indirectly holds an interest. In addition,
1 These investments were in companies or partnerships that
are "exempt wholesale generators," as defined in Section 32,
operating or constructing facilities in Hawaii and Virginia, and
in "foreign utility companies," as defined in Section 33,
operating in The Grand Bahamas, Chile and Argentina.
<PAGE>
- 6 -
each domestic "exempt wholesale generator" in which Southern
holds an interest maintains its books and records and prepares
its financial statements in conformity with U.S. generally
accepted accounting principles ("GAAP"). The books and records
and financial statements of each "foreign utility company" in
which Southern holds an interest (including those that are
"majority-owned subsidiaries" and those that are not) are
maintained and prepared in conformity with GAAP. All of such
books and records and financial statements will be made available
to the Commission, in English, upon request.
Rule 53(a)(3): No more than 2% of the employees of
Southern's operating utility subsidiaries will, at any one time,
directly or indirectly, render services to "exempt wholesale
generators" and "foreign utility companies." Based on current
staffing levels of Southern's domestic operating utility
subsidiaries (such companies currently employ, in the aggregate,
approximately 27,000 salaried and hourly employees), no more than
540 employees of these companies, in the aggregate, determined on
a full-time-equivalent basis, will be utilized at any one time in
rendering services directly or indirectly to "exempt wholesale
generators" and "foreign utility companies." In a separate
proceeding (File No. 70-7932) certain of Southern's subsidiaries
are requesting authority to render services to "exempt wholesale
generators" and "foreign utility companies," as required by Rule
53(a).
Rule 53(a)(4): Southern is simultaneously submitting a
copy of this Application or Declaration, and will submit copies
of any Rule 24 certificates required hereunder, as well as a copy
<PAGE>
- 7 -
of Southern's Form U5S, to the Federal Energy Regulatory
Commission and to the appropriate public service commission(s)
having jurisdiction over the retail rates of Southern's operating
utility subsidiaries.
In addition, Southern states that the provisions of
Rule 53(a) are not made inapplicable to the authorization herein
requested by reason of the provisions of Rule 53(b).
Rule 53(b)(1): Neither Southern nor any subsidiary of
Southern is the subject of any pending bankruptcy or similar
proceeding.
Rule 53(b)(2): Southern's average consolidated
retained earnings for the four most recent quarterly periods
($3.019 billion) represented an increase of approximately $44
million in the average consolidated retained earnings for the
previous four quarterly periods ($2.975 billion).
Rule 53(b)(3): In the previous fiscal year, Southern
did not report any operating losses attributable to its direct or
indirect investments in "exempt wholesale generators" and
"foreign utility companies."
Item 4. Regulatory Approval.
No state commission and no federal commission (other
than the Commission) has jurisdiction over the proposed
transactions.
Item 5. Procedure.
The applicants request that the Commission's order
herein be issued as soon as the rules will allow and that there
be no 30-day waiting period between the issuance of the
<PAGE>
- 8 -
Commission's order and the date on which it is to become
effective.
It is submitted that a recommended decision by a
hearing officer or other responsible officer of the Commission is
not needed with respect to the proposed transaction. The
applicants hereby consent that the Division of Investment
Management may assist with the preparation of the Commission's
decision and/or order in this matter unless such Division opposes
the matters covered hereby.
Item 6. Exhibits and Financial Statements.
(a) Exhibits
A - None.
B - None.
C - None.
D - None.
E - None.
F-1 - Opinion of Balch & Bingham, counsel to
Southern Nuclear.
F-2 - Opinion of Troutman Sanders, counsel to
Southern.
G - Projection of Capital Funds Requirements for
April, 1995 - March, 1998.
H - Form of Notice.
(b) Financial Statements.
Balance Sheet of Southern Nuclear as of December 31,
1994.
Statement of Income of Southern Nuclear as of December
31, 1994.
<PAGE>
- 9 -
Item 7. Information as to Environmental Effects.
The issuance of an order by the Commission with respect
to the subject transactions is not a major federal action
significantly affecting the quality of the human environment.
No federal agency has prepared or is preparing an
environmental impact statement with respect to the subject
transactions.
SIGNATURES
Pursuant to the requirements of the Public Utility
Holding Company Act of 1935, the undersigned companies have duly
caused this statement to be signed on their behalf by the
undersigned thereunto duly authorized.
February 2, 1995 THE SOUTHERN COMPANY
By: /s/Tommy Chisholm
Tommy Chisholm, Secretary
SOUTHERN NUCLEAR OPERATING COMPANY, INC.
BY: /s/Wayne Boston
Wayne Boston, Assistant Secretary
<PAGE>
Exhibit F-1
Balch & Bingham
Birmingham, Alabama
205-251-8100
February 2, 1995
Securities and Exchange Commission
Washington, D.C. 20549
RE: Statement on Form U-1 of
The Southern Company and
Southern Nuclear Operating Company, Inc.
Ladies and Gentlemen:
We have read the statement on Form U-1, as amended, referred to
above relating to the proposed borrowing by Southern Nuclear
Operating Company, Inc. (Southern Nuclear) of up to an aggregate
principal amount as stated therein.
We are of the opinion that Southern Nuclear is validly organized
and duly existing as a corporation under the laws of the State of
Delaware and that, upon the issuance of your order in this matter
permitting such statement on Form U-1 to become effective, and in
the event that the proposed transactions are consummated in
accordance with such statement on Form U-1:
(a) all State laws applicable to the proposed
transactions will have been complied with;
(b) the notes evidencing such borrowings will be valid
and binding obligations of Southern Nuclear in
accordance with their terms; and
(c) the consummation of the proposed transactions will
not violate the legal rights of the holders of any
securities issued by Southern Nuclear or any
associate company thereof.
We hereby give our written consent to the use of this opinion in
connection with the above-mentioned statement on Form U-1.
Yours very truly,
/s/Balch & Bingham
<PAGE>
Exhibit F-2
Troutman Sanders
Atlanta, Ga
404-885-3000
February 2, 1995
Securities and Exchange Commission
Washington, D.C. 20549
RE: Statement on Form U-1 of
The Southern Company and
Southern Nuclear Operating Company, Inc.
Ladies and Gentlemen:
We are familiar with the statement on Form U-1 referred to above
relating to the proposal by The Southern Company ("Southern") to
make loans and open account advances to, or to guarantee
borrowings by, Southern Nuclear Operating Company, Inc.
("Southern Nuclear"), all as described in such statement, and we
are familiar with the proceedings thereunder.
We are of the opinion that Southern is validly organized and duly
existing as a corporation under the laws of the State of Delaware
and that upon the issuance of your order in this matter
permitting such statement on Form U-1 to become effective, and in
the event that the proposed transactions are consummated in
accordance with such statement on Form U-1 and such order:
(a) all State laws applicable to the proposed
transactions by Southern will have been complied
with;
(b) any guaranties of Southern Nuclear's indebtedness by
Southern will be valid and binding obligations of
Southern in accordance with their terms; and
(c) the consummation of the proposed transactions by
Southern will not violate the legal rights of the
holders of any securities issued by Southern or any
associate company thereof.
We hereby give our written consent to the use of this opinion in
connection with the above-mentioned statement on Form U-1.
Yours very truly,
/s/Troutman Sanders
<PAGE>
<TABLE>
<CAPTION>
PROJECTION OF CAPITAL FUNDS REQUIREMENTS
APRIL 1995 - MARCH 1998
(000'S)
1995 1996
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
USE OF PROCEEDS: APR MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR
OFFICE FURNITURE 207 20 235 155 76 62 69 19 9 130 130 130 130
& EQUIPMENT
EMPLOYEE LOANS * 1,835 96 96 96 96 96 96 96 96 96 96 96 96
LEASEHOLD IMP &
OTHER CAPITAL REQ ** 300 300 300 300 300
--------------------------------------------------------------------------------
SUBTOTAL 2,342 116 331 551 172 158 465 115 105 526 226 226 526
--------------------------------------------------------------------------------
PROJECTED CASH INFLOWS:
DEPREC & AMORT 150 153 152 152 153 153 154 154 153 147 146 140 138
EMPLOYEE LOAN
REPAYMENTS 58 58 58 59 59 59 60 60 60 61 61 61 62
--------------------------------------------------------------------------------
SUBTOTAL 208 211 210 211 212 212 214 214 213 208 207 201 200
--------------------------------------------------------------------------------
MONTHLY CAPITAL REQ 2,134 (95) 121 340 (40) (54) 251 (99) (108) 318 19 25 326
================================================================================
LOAN OUTSTANDING
AT 4/01/95 5,000
======
CUMULATIVE
CAPITAL REQUIREMENTS 7,134 7,039 7,160 7,500 7,460 7,406 7,657 7,558 7,450 7,768 7,787 7,812 8,138
================================================================================
* PROJECTS THE PURCHASE OF EMPLOYEE LOANS FOR PERSONNEL TRANSFERRING TO SOUTHERN NUCLEAR FROM GPC IN APRIL, 1995.
** EXAMPLES OF "OTHER CAPITAL REQUIREMENTS" ARE RELOCATION LOANS, CASH ADVANCES, PREPAYMENTS, ETC.
</TABLE>
<TABLE>
<CAPTION>
PROJECTION OF CAPITAL FUNDS REQUIREMENTS
APRIL 1995 - MARCH 1998
(000'S)
1996 1997
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C>
USE OF PROCEEDS: MAY JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR APR MAY
OFFICE FURNITURE
& EQUIPMENT 130 130 129 129 129 129 129 129 130 130 130 130 130
EMPLOYEE LOANS *
96 96 96 96 96 96 96 96 96 96 96 96 96
LEASEHOLD IMP &
OTHER CAPITAL REQ **
300 300 213
SUBTOTAL --------------------------------------------------------------------------------
226 226 525 225 225 525 225 225 439 226 226 226 226
--------------------------------------------------------------------------------
PROJECTED CASH INFLOWS:
DEPREC & AMORT
138 135 132 131 129 128 127 126 121 119 117 117 116
EMPLOYEE LOAN
REPAYMENTS
62 62 63 63 63 64 64 64 65 65 65 66 66
SUBTOTAL --------------------------------------------------------------------------------
200 197 195 194 192 192 191 190 186 184 182 183 182
--------------------------------------------------------------------------------
MONTHLY CAPITAL REQ
26 29 330 31 33 333 34 35 253 42 44 43 44
================================================================================
LOAN OUTSTANDING
AT 4/01/95
CUMULATIVE
CAPITAL REQUIREMENTS
8,164 8,193 8,523 8,554 8,587 8,920 8,954 8,989 9,242 9,284 9,328 9,371 9,415
================================================================================
</TABLE>
<TABLE>
<CAPTION>
PROJECTION OF CAPITAL FUNDS REQUIREMENTS
APRIL 1995 - MARCH 1998
(000'S)
1997 1998 CAPITAL REQ
<S> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <C> <S><C>
USE OF PROCEEDS: JUN JUL AUG SEPT OCT NOV DEC JAN FEB MAR 4/95 - 3/98
OFFICE FURNITURE 130 129 129 129 129 129 129 130 130 130 4,350
& EQUIPMENT
EMPLOYEE LOANS * 96 96 96 96 96 96 96 96 96 96 5,195
LEASEHOLD IMP &
OTHER CAPITAL REQ ** 2,313
--------------------------------------------------------------------
SUBTOTAL 226 225 225 225 225 225 225 226 226 226 11,858
--------------------------------------------------------------------
PROJECTED CASH INFLOWS:
DEPREC & AMORT 113 107 106 104 104 102 100 86 85 84 4,572
EMPLOYEE LOAN
REPAYMENTS 66 67 67 67 68 68 68 69 69 69 2,286
--------------------------------------------------------------------
SUBTOTAL 179 174 173 171 172 170 168 155 154 153 6,858
--------------------------------------------------------------------
MONTHLY CAPITAL REQ 47 51 52 54 53 55 57 71 72 73 5,000
====================================================================
LOAN OUTSTANDING
AT 4/01/95
CUMULATIVE
CAPITAL REQUIREMENTS 9,462 9,513 9,565 9,619 9,672 9,727 9,784 9,855 9,927 10,000 10,000
====================================================================
</TABLE>
EXHIBIT H
The Southern Company, et. al. (70- )
The Southern Company ("Southern"), 64 Perimeter Center East,
Atlanta, Georgia 30346, a registered holding company, and its
wholly-owned subsidiary company, Southern Nuclear Operating
Company, Inc. ("Southern Nuclear"), 40 Inverness Center Parkway,
Birmingham, Alabama 35204, have filed an application-declaration
under Sections 6(a), 7, 9(a), 10 and 12(b) of the Act and Rule 45
thereunder. Southern Nuclear proposes to borrow, from time to
time through March 31, 1998, from Southern or lenders up to an
aggregate principal amount of $10 million at any time
outstanding. Borrowings from Southern will have maturities not
to exceed 10 years and will accrue interest at a rate 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 the Federal Reserve statistical
release H.15 (519) for the next to the last complete business
week of the preceding calendar month. However, this rate will
not exceed the prime rate in effect at a nationally recognized
bank to be designated by Southern. Loans obtained from lenders
other than Southern will have maturities not to exceed 10 years
and will accrue interest at a rate not to exceed the prime rate
plus 2% for variable rate loans and the prime rate at the time of
<PAGE>
borrowing plus 3% for fixed rate loans. Such loans may be
secured or unsecured and may be guaranteed by Southern.
Southern proposes through March 31, 1998, to make up to $5
million in open account advances to Southern Nuclear from time to
time, which, at the option of Southern, may be converted into
capital contributions or additional shares of common stock of
Southern Nuclear. To the extent any such advances are converted
to equity, the borrowing authority sought herein shall be reduced
by the amount of the advances so converted, so that the total
capitalization of Southern Nuclear does not exceed $11.6 million
(including its present common equity of $1.6 million) without
further authorization from the Commission. The rate of return on
Southern Nuclear's common equity capital will not exceed the
average of the most recent rates of return allowed by the Alabama
Public Service Commission and the Georgia Public Service
Commission.
Southern Nuclear states that the funds will be used by
Southern Nuclear in connection with its working capital needs,
including the purchase of equipment and office furniture,
leasehold improvements and loans to employees for purposes such
as residential energy programs, purchases of computers and
employee transfer expenses.
- 2 -
<PAGE>
Southern Nuclear Operating Company, Inc.
BALANCE SHEET (unaudited)
(Thousands of Dollars)
ACCOUNT ASSETS AND OTHER DEBITS AS OF DECEMBER 31,
1994
____________________________________________________________________
SERVICE COMPANY PROPERTY
101 Service company property 13,554
107 Construction work in progress -
Total Property 13,554
108 Less accumulated provision for depreciation
and amortization for service company
property 8,316
Net Service Company Property 5,238
INVESTMENTS
123 Investments in associates companies -
124 Other investments 1,891
total Investments 1,891
CURRENT AND ACCRUED ASSETS
131 Cash 131
134 Special deposits -
135 Working funds 42
136 Temporary cash investments 3,100
141 Notes receivable -
143 Accounts receivable 27
144 Accumulated provision for uncollectible
accounts -
146 Accounts receivable from associate
companies 65,976
152 Fuel stock expenses undistributed -
154 Materials and supplies -
163 Stores expense undistributed -
165 Prepayments 472
174 Miscellaneous current and accrued
assets 1
Total Current and Accrued Assets 69,749
DEFERRED DEBITS
181 Unamortized debt expense -
184 Clearing accounts -
186 Miscellaneous deferred debits 199
188 Research, development, or demonstration
expenditures -
190 Accumulated deferred income taxes 23,364
Total Deferred Debits 23,563
TOTAL ASSETS AND OTHER DEBITS 100,441
<PAGE>
Southern Nuclear Operating Company, Inc.
BALANCE SHEET (unaudited)
(Thousands of Dollars)
ACCOUNT LIABILITIES AND PROPRIETARY CAPITAL AS OF DECEMBER 31,
1994
____________________________________________________________________
PROPRIETARY CAPITAL
201 Common stock issued 10
211 Miscellaneous paid-in-capital 1,530
215 Appropriated retained earnings -
216 Unappropriated retained earnings -
Total Proprietary Capital 1,540
LONG-TERM DEBT
223 Advances from associate companies 5,000
224 Other long-term debt -
225 Unamortized premium on long-term debt -
226 Unamortized discount on long-term debt
(debit) -
Total Long-Term Debt 5,000
CURRENT AND ACCRUED LIABILITIES
231 Notes payable -
232 Accounts payable 6,110
233 Notes payable to associate companies -
234 Accounts payable to associate companies 17,056
236 Taxes accrued 733
237 Interest accrued 71
238 Dividends declared -
241 Tax collections payable 3
242 Miscellaneous current and accrued
liabilities 65,693
Total Current and Accrued
Liabilities 89,666
DEFERRED CREDITS
253 Other deferred credits 3,856
255 Accumulated deferred investment
tax credits -
Total Deferred Credits 3,856
282 ACCUMULATED DEFERRED INCOME TAXES 380
TOTAL LIABILITIES AND PROPRIETARY
CAPITAL 100,441
<PAGE>
Southern Nuclear Operating Company, Inc.
STATEMENT OF INCOME (unaudited)
(Thousands of Dollars)
ACCOUNT DESCRIPTION AS OF DECEMBER 31,
1994
(Note 2)
_________________________________________________________________
INCOME
457 Services rendered to associate companies 193,290
458 Services rendered to nonassociate companies -
421 Miscellaneous income or loss 292
TOTAL INCOME 193,582
EXPENSE
920 Salaries and wages 79,939
921 Office supplies and expenses 11,728
922 Administrative expense transferred -
credit -
923 Outside services employed 63,762
924 Property insurance 28
925 Injuries and damages 1,131
926 Employee pensions and benefits 16,050
928 Regulatory commission expense -
930.1 General advertising expenses -
930.2 Miscellaneous general expenses 8,838
931 Rents 1,814
932 Maintenance of structures and equipment 1,465
403 Depreciation and amortization expense 1,592
408 Taxes other than income taxes 5,728
409 Income taxes 2,945
410 Provision for deferred income taxes 3,440
411 Provision for deferred income taxes -
credit (6,593)
411.5 Investment tax credit -
426.1 Donations 183
426.5 Other deductions 1,300
427 Interest on long-term debt -
430 Interest on debt to associate companies 226
431 Other interest expense 6
TOTAL EXPENSE 193,582
NET INCOME OR (LOSS) -
( ) Denotes red figure
<PAGE>
