-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, GDLfF+fnsRf2VVYk3PcvT0jgx+q0aCxyBm31su7is3nau0iPU1CuTwOzLORttwKy bHZYubPpLYxPInaJcpJR+A== 0000017797-96-000015.txt : 19960515 0000017797-96-000015.hdr.sgml : 19960515 ACCESSION NUMBER: 0000017797-96-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 19960331 FILED AS OF DATE: 19960514 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: CAROLINA POWER & LIGHT CO CENTRAL INDEX KEY: 0000017797 STANDARD INDUSTRIAL CLASSIFICATION: ELECTRIC SERVICES [4911] IRS NUMBER: 560165465 STATE OF INCORPORATION: NC FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-03382 FILM NUMBER: 96562540 BUSINESS ADDRESS: STREET 1: 411 FAYETTEVILLE ST CITY: RALEIGH STATE: NC ZIP: 27601 BUSINESS PHONE: 9195466111 10-Q 1 FORM 10-Q FOR QUARTER ENDED MARCH 31, 1996 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D. C. 20549 FORM 10-Q (Mark One) [ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 1996 ______________ OR [ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from _____ to _____ Commission file number 1-3382 ______ CAROLINA POWER & LIGHT COMPANY ______________________________ (Exact name of registrant as specified in its charter) North Carolina 56-0165465 ______________________________________________________________________________ (State or other jurisdiction of (I.R.S. Employer Identification No.) incorporation or organization) 411 Fayetteville Street, Raleigh, North Carolina 27601-1748 ____________________________________________________________ (Address of principal executive offices) (Zip Code) 919-546-6111 ____________ (Registrant's telephone number, including area code) ______________________________________________________________________________ (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X . No . ___ ___ APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock (Without Par Value) shares outstanding at April 30, 1996: 152,086,922. PART I. FINANCIAL INFORMATION Item 1. Financial Statements _______ ____________________ Reference is made to the attached Appendix containing the Consolidated Interim Financial Statements for the periods ended March 31, 1996. The amounts are unaudited but, in the opinion of management, reflect all adjustments necessary to fairly present the Company's financial position and results of operations for the interim periods. Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations _______ ____________________________________________________________ Results of Operations For the Three and Twelve Months Ended March 31, 1996, As Compared With the Corresponding Periods One Year Earlier ___________________________________________________________ Operating Revenues: For the three and twelve months ended March 31, 1996, operating revenues increased due to the following factors (in millions): Three Months Twelve Months ____________ _____________ Customer Growth/Changes In Usage Patterns $ 15 $ 81 Weather 31 111 Price (15) (48) Other 24 58 _____ _____ Total $ 55 $ 202 ===== ===== The increase in the weather component of revenue for the three months ended March 31, 1996, is the result of colder weather in the current period as compared to the prior period, which was milder than normal. The twelve-month increase lso reflects more extreme weather patterns in the current period than in the prior period. Approximately $13 million of the decrease in the price componet of revenue for the three-month period and approximately $32 million for the twelve-month period are attributable to a decrease in the fuel cost component of revenue. In addition, for the twelve months, the price component decreased due to the expiration in July 1994 of a North Carolina rate rider under which the Company was allowed recovery of certain abandoned plant costs. This reduction in revenue did not significantly impact net income due to a corresponding decrease in amortization expense. The increase in the other component for both periods is due to increased bulk power sales, which reflect weather impacts and to the Company's active participation in the bulk power market. The loss of 200 megawatts of load from North Carolina Electric Membership Corporation, beginning in January 1996, is included as a reduction in the customer growth component. Operating Expenses: The increase in fuel expense for the three and twelve months ended March 31, 1996, is primarily due to a change in the generation mix. For the three months, fossil generation, as a percentage of total generation, increased from 43% to 59% and lower-cost nuclear generation decreased from 55% to 39%. For the twelve months, fossil generation increased from 47% to 57%, and nuclear generation decreased from 51% to 41%. The change in the generation mix is due primarily to the timing of refueling outages of the Company's nuclear facilities. Also contributing to the increase in fuel expense for both periods is an increase in total generation due to higher sales. Purchased power increased for the three months ended March 31, 1996, due to reduced purchases from cogenerators in the prior period. For the twelve months ended March 31, 1996, purchased power increased due to the reduced purchases from cogenerators in the prior period ($15 million) and increased purchases from other utilities ($24 million). These increases were partially offset by a $14 million decrease in purchases from Power Agency, which was primarily due to the provisions of the Company's 1993 agreement with Power Agency. Pursuant to this agreement, the Company's buyback percentage of capacity and energy from the Harris Plant decreased from 50% in 1994 to 33% in 1995 and 1996. Excluding the impact of a December 1994 insurance reserve adjustment, which reduced expense in the prior period, operation and maintenance expense decreased $20 million for the twelve months ended March 31, 1996. In the prior year there were several major fossil plant outages that resulted in higher expense for that period as compared to the current period. For the twelve months ended March 31, 1996, the decrease in depreciation and amortization reflects the completion of the amortization of abandoned plant costs for Harris Unit No. 2 ($14 million decrease) and the completion in July 1994 of the amortization of certain abandoned plant costs associated with a North Carolina rate rider ($13 million decrease). Partially offsetting the decreases was an increase of $11 million in depreciation expense. The increase in income tax expense for both periods is primarily due to an increase in operating income. Other Income: The increase in the income tax credit for the twelve months ended March 31, 1996, is primarily attributable to lower non-operating income in the current period. The decrease in interest income for the twelve-month period is primarily due to the recording in June 1994 of interest income related to certain IRS audit issues. Other income, net, decreased for the twelve-month period due to an increase in charitable contributions of approximately $7 million and decreases in various income items, none of which is individually significant. Interest Charges: Other interest charges increased for the twelve months ended March 31, 1996, primarily due to a $6 million interest accrual related to the 1995 North Carolina Utilities Commission Fuel Order. Material Changes in Capital Resources and Liquidity From December 31, 1995, to March 31, 1996 and From March 31, 1995, to March 31, 1996 ___________________________________________________ During the twelve months ended March 31, 1996, the Company issued long-term debt of $125 million. The Company did not issue long-term debt in the three-month period. The proceeds of this issuance, and/or the issuance of short-term debt and internally generated funds, financed the redemption or retirement of long-term debt totaling $248 million and $399 million during the three and twelve months ended March 31, 1996, respectively. In the first quarter of 1996, the Company entered into two new long-term revolving credit facilities totaling $350 million, which support the Company's commercial paper borrowings. The Company is required to pay minimal annual commitment fees to maintain these facilities. Consistent with management's intent to maintain its commercial paper on a long-term basis, and as supported by its long-term credit facilities, the Company has included in long-term debt $339 million of commercial paper outstanding as of March 31, 1996. In addition to these new facilities, the Company has other long-term credit agreements totaling $235 million and a $100 million short-term credit agreement. The Company's capital structure as of March 31 was as follows: 1996 1995 ____ ____ Common Stock Equity 49.47% 48.94% Long-term Debt 47.83% 48.37% Preferred Stock 2.70% 2.69% The Company's First Mortgage Bonds are currently rated "A2" by Moody's Investors Service, "A" by Standard & Poor's and "A+" by Duff & Phelps. Moody's Investors Service, Standard & Poor's and Duff & Phelps have rated the Company's commercial paper "P-1," "A-1" and "D-1," respectively. In 1994, the Board of Directors of the Company authorized the repurchase of up to 10 million shares of the Company's common stock on the open market. In accordance with the stock repurchase program, the Company has purchased approximately 8.6 million shares through March 31, 1996. PART II. OTHER INFORMATION Item 1. Legal Proceedings _______ _________________ Legal aspects of certain matters are set forth in Item 5 below. Item 2. Changes in Securities ) _______ _____________________ ) ) ) Item 3. Defaults upon Senior ) Not applicable for the Securities ) quarter ended March 31, 1996. _______ ____________________ ) ) Item 4. Submission of Matters to ) a Vote of Security Holders ) _______ __________________________ ) Item 5. Other Information _______ _________________ 1. (Reference is made to the Company's 1995 Form 10-K, Generating Capability, paragraph 3, page 6.) With regard to the Company's generation additions schedule, the Company filed an Application for a Certificate of Public Convenience and Necessity with the North Carolina Utilities Commission (NCUC) on September 27, 1995, seeking permission to construct 500 MW of combustion turbine capacity adjacent to the Company's Lee Steam Electric Plant in Wayne County, North Carolina. The NCUC hearing in this matter was held on January 9, 1996, and by order issued March 21, 1996, the NCUC granted the Company a certificate to construct these combustion turbine units. The Company issued a Notice of Inquiry (NOI) on March 12, 1996 concerning short-term power purchases for the peak winter months of 1998 and 1999, and the peak summer months of 1998. The NOI was sent to a number of electric utilities, independent power producers and power marketers. The Company has received a number of bids, which are under review and evaluation. The Company currently plans to issue a request for bids during the second quarter of 1996 relating to its next two blocks of capacity additions. The Company cannot predict the outcome of these matters. 2. (Reference is made to the Company's 1995 Form 10-K, Competition and Franchises, paragraph 1.b., page 8). On April 24, 1996 the Federal Energy Regulatory Commission (FERC) issued its final rules on open access transmission and stranded costs and on information systems and standards of conduct. The rule as announced will require all transmitting utilities to have on file an open access transmission tariff and it contains provision for the recovery of stranded costs. The rule also contains numerous other items that could impact the sale of electric energy at the wholesale level. These final rules become effective sixty (60) days after the rules are published in the Federal Register. FERC also issued a notice of proposed rulemaking (NOPR) on Capacity Reservation Open Access Transmission Tariffs. Comments on this new NOPR are due to FERC by August 1, 1996. The Company cannot predict the outcome of this matter. With regard to the issue of retail competition in the Company's retail jurisdictions, in 1995, the NCUC concluded that for the time being it should monitor developments in other states and at the FERC regarding jurisdictional and other issues affecting retail competition. The NCUC also requested that interested parties suggest specific issues it should consider in connection with this matter. In response to those suggestions, on April 3, 1996, the NCUC issued an order seeking comments regarding the impact of retail competition on system reliability, obligation to serve, stranded costs and ancillary costs. These comments are due June 3, 1996. The NCUC continues to believe there is no need to hold hearings at this time. The Company cannot predict the outcome of this matter. 3. (Reference is made to the Company's 1995 Form 10-K, Competition and Franchises, paragraph 1.f., page 10.) On April 26, the Joint Utility Review Committee adopted a resolution stating "that no further amendments to Chapter 62 of the General Statutes are necessary at this time to encourage the construction of new interstate pipelines in North Carolina (and) that the Committee will continue to review the efforts to expand natural gas service in North Carolina on a regular basis, as the Committee has done since 1987." The Company cannot predict the outcome of this matter. 4. (Reference is made to the Company's 1995 Form 10-K, Financing Program, paragraph 4, page 12.) Additional retirements and redemptions during 1996 were as follows: -- The retirement on April 1, 1996, of $30 million principal amount of First Mortgage Bonds, 5.125% Series, which matured on that date. -- The redemption on April 1, 1996, of $100 million principal amount of First Mortgage Bonds, 9% Series due April 1, 2022, at 105.89% of the principal amount of such bonds plus accrued interest to the date of redemption. 5. (Reference is made to the Company's 1995 Form 10-K, Retail Rate Matters, paragraph 3, page 14.) With regard to the South Carolina Public Service Commission's (SCPSC) proceeding to consider the Company's 1995 Integrated Resource Plan, the South Carolina Consumer Advocate and Nucor Corporation have intervened in this proceeding. The Company cannot predict the outcome of this matter. 6. (Reference is made to the Company's 1995 Form 10-K, Retail Rate Matters, paragraph 5, page 14.) With regard to the Company's spring 1996 South Carolina fuel case hearing, by order dated March 29, 1996, the SCPSC granted the Company's request to maintain the fuel factor at its current level of 1.34 cents/kWh for the six month period from April 1, 1996 through September 30, 1996. 7. (Reference is made to the Company's 1995 Form 10-K, Retail Rate Matters, paragraph 6, page 15.) With regard to the Company's South Carolina avoided cost proceeding, the SCPSC has opened Docket No. 95-1192-E to establish avoided cost rates for all electric utilities in South Carolina, and hearings are scheduled for August 8 and 9, 1996. 8. (Reference is made to the Company's 1995 Form 10-K, Wholesale Rate Matters, paragraph 2.a., page 15.) With regard to the offer of settlement the Company filed with the FERC on February 6, 1996, concerning the return on equity (ROE) in connection with the formula rates provided in the Power Coordination Agreement dated August 27, 1993, between the Company and the North Carolina Electric Membership Corporation, on April 11, 1996 the FERC issued an order approving the 10.75% ROE and ordered refunds of excess revenues collected since January 1, 1996. These refunds are not material to the results of operations of the Company. 9. (Reference is made to the Company's 1995 Form 10-K, Environmental Matters, paragraph 3, page 16.) By letter dated March 7, 1996, the Environmental Protection Agency (EPA) notified the Company that it is a potentially responsible party (PRP) with respect to the disposal of hazardous substances at the Cherokee Oil Company (Cherokee) sites in Charlotte, North Carolina. The materials sent from the Company's facilities to the Cherokee sites were associated with tank cleanings at the Company's former Wilmington Oil Terminal. The EPA has performed removal actions at the sites and is now seeking information for purposes of cost recovery. Although the Company cannot predict the outcome of this matter, it does not anticipate costs associated with this site will be material to the results of operations of the Company. Item 6. Exhibits and Reports on Form 8-K ______ ________________________________ (a) Exhibits None. (b) Reports on Form 8-K filed during or with respect to the quarter: Date of Report (Earliest Event Reported) Date of Signature Items Reported _________________________ _________________ ______________ NONE SIGNATURES Pursuant to requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. CAROLINA POWER & LIGHT COMPANY ______________________________ (Registrant) By /s/ Glenn E. Harder Executive Vice President By /s/ Mark F. Mulhern Vice President and Controller (and Principal Accounting Officer) Date: May 14, 1996 EX-99 2 INCOME STATEMENT
APPENDIX Carolina Power & Light Company (ORGANIZED UNDER THE LAWS OF NORTH CAROLINA) CONSOLIDATED INTERIM FINANCIAL STATEMENTS (NOT AUDITED BY INDEPENDENT AUDITORS) March 31, 1996 STATEMENTS OF INCOME Three Months Ended Twelve Months Ended March 31 March 31 (In thousands except per share amounts) 1996 1995 1996 1995 ----------------------------------------------------------------------------------------------------------------- Operating Revenues $ 783,585 $ 728,238 $3,061,899 $2,860,367 ----------------------------------------------------------------------------------------------------------------- Operating Expenses Operation - fuel 137,566 133,271 534,107 515,748 purchased power 105,989 93,659 422,270 396,419 other 122,356 127,078 536,725 536,232 Maintenance 47,044 40,755 202,874 200,529 Depreciation and amortization 92,478 90,275 366,730 382,953 Taxes other than on income 38,564 38,920 143,687 142,025 Income tax expense 77,095 61,416 274,903 202,453 Harris Plant deferred costs, net 8,065 6,605 29,588 26,456 ----------------------------------------------------------------------------------------------------------------- Total Operating Expenses 629,157 591,979 2,510,884 2,402,815 ----------------------------------------------------------------------------------------------------------------- Operating Income 154,428 136,259 551,015 457,552 ----------------------------------------------------------------------------------------------------------------- Other Income Allowance for equity funds used during construction 1,035 913 3,472 4,724 Income tax credit 4,413 3,290 19,664 9,131 Harris Plant carrying costs 1,809 2,219 7,886 9,410 Interest income 1,134 2,588 7,226 15,863 Other income, net 6,199 4,021 11,244 23,124 ----------------------------------------------------------------------------------------------------------------- Total Other Income 14,590 13,031 49,492 62,252 ----------------------------------------------------------------------------------------------------------------- Income Before Interest Charges 169,018 149,290 600,507 519,804 ----------------------------------------------------------------------------------------------------------------- Interest Charges Long-term debt 44,676 46,593 185,480 183,108 Other interest charges 6,912 6,028 26,781 17,896 Allowance for borrowed funds used during construction (916) (1,364) (4,670) (3,576) ----------------------------------------------------------------------------------------------------------------- Net Interest Charges 50,672 51,257 207,591 197,428 ----------------------------------------------------------------------------------------------------------------- Net Income 118,346 98,033 392,916 322,376 Preferred Stock Dividend Requirements (2,402) (2,402) (9,609) (9,609) ----------------------------------------------------------------------------------------------------------------- Earnings for Common Stock $ 115,944 $ 95,631 $ 383,307 $ 312,767 ================================================================================================================= Average Common Shares Outstanding (Note 4) 143,625 147,270 145,329 148,738 Earnings per Common Share (Note 4) $ 0.81 $ 0.65 $ 2.64 $ 2.10 Dividends Declared per Common Share $ 0.455 $ 0.440 $ 1.790 $ 1.730 ................................................................................................................. See Supplemental Data and Notes to Financial Statements.
EX-99 3 BALANCE SHEET
Carolina Power & Light Company BALANCE SHEETS March 31 December 31 (In thousands) 1996 1995 1995 - ------------------------------------------------------------------------------------------------------ ASSETS Electric Utility Plant Electric utility plant in service $ 9,520,522 $ 9,246,650 $ 9,440,442 Accumulated depreciation (3,566,838) (3,263,768) (3,493,153) - ------------------------------------------------------------------------------------------------------ Electric utility plant in service, net 5,953,684 5,982,882 5,947,289 Held for future use 13,737 13,195 13,304 Construction work in progress 173,113 171,717 179,260 Nuclear fuel, net of amortization 182,402 163,159 188,655 - ------------------------------------------------------------------------------------------------------ Total Electric Utility Plant, Net 6,322,936 6,330,953 6,328,508 - ------------------------------------------------------------------------------------------------------ Current Assets Cash and cash equivalents 5,602 39,858 14,489 Accounts receivable 338,923 284,934 364,536 Fuel 43,914 103,820 53,654 Materials and supplies 123,014 124,826 121,227 Prepayments 69,682 50,628 59,918 Other current assets 29,213 26,792 27,834 - ------------------------------------------------------------------------------------------------------ Total Current Assets 610,348 630,858 641,658 - ------------------------------------------------------------------------------------------------------ Deferred Debits and Other Assets Income taxes recoverable through future rates 388,009 385,089 387,150 Abandonment costs 53,657 67,177 57,120 Harris Plant deferred costs 101,737 123,438 107,992 Unamortized debt expense 66,639 61,933 58,404 Miscellaneous other property and investments 490,864 374,338 475,564 Other assets and deferred debits 171,782 184,409 170,754 - ------------------------------------------------------------------------------------------------------ Total Deferred Debits and Other Assets 1,272,688 1,196,384 1,256,984 - ------------------------------------------------------------------------------------------------------ Total Assets $ 8,205,972 $ 8,158,195 $ 8,227,150 ====================================================================================================== CAPITALIZATION AND LIABILITIES Capitalization Common stock equity $ 2,640,027 $ 2,622,103 $ 2,574,743 Preferred stock - redemption not required 143,801 143,801 143,801 Long-term debt, net 2,552,415 2,591,462 2,610,343 - ------------------------------------------------------------------------------------------------------ Total Capitalization 5,336,243 5,357,366 5,328,887 - ------------------------------------------------------------------------------------------------------ Current Liabilities Current portion of long-term debt 268,366 150,050 105,755 Notes payable 3,640 95,500 73,743 Accounts payable 137,997 127,234 309,294 Taxes accrued 62,846 84,086 2,456 Interest accrued 43,612 49,638 48,441 Dividends declared 71,525 70,770 71,285 Deferred fuel credit 16,086 50,819 27,495 Other current liabilities 81,458 61,022 79,220 - ------------------------------------------------------------------------------------------------------ Total Current Liabilities 685,530 689,119 717,689 - ------------------------------------------------------------------------------------------------------ Deferred Credits and Other Liabilities Accumulated deferred income taxes 1,728,933 1,627,090 1,716,835 Accumulated deferred investment tax credits 240,095 249,498 242,707 Other liabilities and deferred credits 215,171 235,122 221,032 - ------------------------------------------------------------------------------------------------------ Total Deferred Credits and Other Liabilities 2,184,199 2,111,710 2,180,574 - ------------------------------------------------------------------------------------------------------ Commitments and Contingencies (Note 5) Total Capitalization and Liabilities $ 8,205,972 $ 8,158,195 $ 8,227,150 ====================================================================================================== SCHEDULES OF COMMON STOCK EQUITY (In thousands) Common stock (Note 4) $ 1,387,041 $ 1,508,098 $ 1,381,496 Unearned ESOP common stock (182,140) (197,011) (191,341) Capital stock issuance expense (790) (790) (790) Retained earnings 1,435,916 1,311,806 1,385,378 - ------------------------------------------------------------------------------------------------------ Total Common Stock Equity $ 2,640,027 $ 2,622,103 $ 2,574,743 ====================================================================================================== ...................................................................................................... See Supplemental Data and Notes to Financial Statements.
EX-99 4 STATEMENT OF CASH FLOWS
Carolina Power & Light Company STATEMENTS OF CASH FLOWS (In thousands) Three Months Ended Twelve Months Ended March 31 March 31 1996 1995 1996 1995 - ----------------------------------------------------------------------------------------------------------- Operating Activities Net income $ 118,346 $ 98,033 $ 392,916 $ 322,376 Adjustments to reconcile net income to net cash provided by operating activities Depreciation and amortization 112,933 115,061 444,534 469,075 Harris Plant deferred costs 6,256 4,386 21,702 17,046 Deferred income taxes 14,626 (11,579) 115,886 34,482 Investment tax credit (2,611) (2,553) (9,402) (11,207) Allowance for equity funds used during construction (1,035) (913) (3,472) (4,724) Deferred fuel cost (credit) (11,409) 22,475 (34,733) 62,897 Net increase in receivables, inventories and prepaid expenses (15,575) (43,392) (50,032) (94,200) Net decrease in payables and accrued expenses (18,615) (16,376) (41,831) (70,304) Miscellaneous 5,744 11,979 29,394 (12,576) - ----------------------------------------------------------------------------------------------------------- Net Cash Provided by Operating Activities 208,660 177,121 864,962 712,865 - ----------------------------------------------------------------------------------------------------------- Investing Activities Gross property additions (88,478) (71,928) (282,950) (274,392) Nuclear fuel additions (26,073) (15,868) (87,551) (30,501) Contributions to external decommissioning trust (10,298) (18,564) (29,809) (33,861) Contributions to retiree benefit trusts (24,700) (2,400) (24,700) (2,400) Allowance for equity funds used during construction 1,035 913 3,472 4,724 Miscellaneous (13,238) (487) (41,266) (6,581) - ----------------------------------------------------------------------------------------------------------- Net Cash Used in Investing Activities (161,752) (108,334) (462,804) (343,011) - ----------------------------------------------------------------------------------------------------------- Financing Activities Proceeds from issuance of long-term debt 265,557 59,731 386,539 229,956 Net increase (decrease) in short-term notes payable (maturity less than 90 days) 3,640 27,400 (18,117) 88,800 Retirement of long-term debt (255,504) (125,045) (406,603) (297,802) Purchase of Company common stock (Note 4) (1,920) (4,178) (130,181) (118,895) Dividends paid on common stock (65,168) (64,656) (258,449) (255,876) Dividends paid on preferred stock (2,400) (2,420) (9,603) (9,623) - ----------------------------------------------------------------------------------------------------------- Net Cash Used in Financing Activities (55,795) (109,168) (436,414) (363,440) - ----------------------------------------------------------------------------------------------------------- Net Increase (Decrease) in Cash and Cash Equivalents (8,887) (40,381) (34,256) 6,414 Cash and Cash Equivalents at Beginning of the Period 14,489 80,239 39,858 33,444 - ----------------------------------------------------------------------------------------------------------- Cash and Cash Equivalents at End of the Period $ 5,602 $ 39,858 $ 5,602 $ 39,858 =========================================================================================================== Supplemental Disclosures of Cash Flow Information Cash paid during the period - interest $ 55,202 $ 54,694 $ 203,804 $ 191,201 income taxes $ 655 $ 1,611 $ 176,207 $ 180,320 ........................................................................................................... See Supplemental Data and Notes to Financial Statements.
EX-99 5 SUPPLEMENTAL DATA
Carolina Power & Light Company SUPPLEMENTAL DATA Three Months Ended Twelve Months Ended March 31 March 31 1996 1995 1996 1995 - ---------------------------------------------------------------------------------------------- Operating Revenues (in thousands) Residential $ 284,278 $ 251,355 $ 1,002,034 $ 904,968 Commercial 151,578 141,142 628,831 592,918 Industrial 163,244 164,416 732,276 739,217 Government and municipal 20,059 18,842 79,616 77,644 Power Agency contract requirements 25,452 23,818 102,585 103,133 NCEMC 70,137 83,707 285,601 273,097 Other wholesale 21,905 20,400 83,912 81,320 Other utilities 33,697 13,541 98,303 43,261 Miscellaneous revenue 13,235 11,017 48,741 44,809 - ---------------------------------------------------------------------------------------------- Total Operating Revenues $ 783,585 $ 728,238 $ 3,061,899 $ 2,860,367 ============================================================================================== Energy Sales (millions of kWh) Residential 3,808 3,263 12,619 11,068 Commercial 2,322 2,091 9,506 8,730 Industrial 3,334 3,268 14,378 14,181 Government and municipal 336 301 1,323 1,257 Power Agency contract requirements 770 476 2,632 2,418 NCEMC 1,091 1,384 5,161 5,047 Other wholesale 480 462 1,935 1,966 Other utilities 1,572 573 4,231 1,441 - ---------------------------------------------------------------------------------------------- Total Energy Sales 13,713 11,818 51,785 46,108 ============================================================================================== Energy Supply (millions of kWh) Generated - coal 7,143 4,563 26,097 19,468 nuclear 4,679 5,847 18,780 20,976 hydro 312 298 838 877 combustion turbines 14 (1) 72 27 Purchased 1,896 1,510 7,819 6,592 - ---------------------------------------------------------------------------------------------- Total Energy Supply (Company Share) 14,044 12,217 53,606 47,940 ============================================================================================== Detail of Income Taxes (in thousands) Included in Operating Expenses Income tax expense (credit)- current $ 66,104 $ 77,155 $ 174,216 $ 189,557 Income tax expense - deferred 13,602 (13,186) 110,090 24,101 Income tax expense - investment tax credit adjustments (2,611) (2,553) (9,403) (11,205) - ---------------------------------------------------------------------------------------------- Subtotal 77,095 61,416 274,903 202,453 - ---------------------------------------------------------------------------------------------- Harris Plant deferred costs - investment tax credit adjustments (74) (74) (297) (297) - ---------------------------------------------------------------------------------------------- Total Included in Operating Expenses 77,021 61,342 274,606 202,156 - ---------------------------------------------------------------------------------------------- Included in Other Income Income tax expense (credit) - current (5,437) (4,897) (25,460) (19,512) Income tax expense (credit) - deferred 1,024 1,607 5,796 10,381 - ---------------------------------------------------------------------------------------------- Total Included in Other Income (4,413) (3,290) (19,664) (9,131) - ---------------------------------------------------------------------------------------------- Total Income Tax Expense $ 72,608 $ 58,052 $ 254,942 $ 193,025 ============================================================================================== FINANCIAL STATISTICS Ratio of earnings to fixed charges 3.84 3.36 Return on average common stock equity 14.58 % 11.87 % Book value per common share $ 18.36 $ 17.81 Capitalization ratios Common stock equity 49.47 % 48.94 % Preferred stock - redemption not required 2.70 2.69 Long-term debt, net 47.83 48.37 - ---------------------------------------------------------------------------------------------- Total 100.00 % 100.00 % ============================================================================================== .............................................................................................. See Notes to Financial Statements.
EX-99 6 NOTES TO FINANCIAL STATEMENTS Carolina Power & Light Company NOTES TO FINANCIAL STATEMENTS 1. These interim financial statements are prepared in conformity with the accounting principles reflected in the financial statements included in the Company's 1995 Annual Report to Shareholders and the 1995 Annual Report on Form 10-K. These are interim financial statements, and because of temperature variations between seasons of the year and the timing of outages of electric generating units, especially nuclear-fueled units, the amounts reported in the Statements of Income for periods of less than twelve months are not necessarily indicative of amounts expected for the year. Certain amounts for 1995 have been reclassified to conform to the 1996 presentation. 2. In the first quarter of 1996, the Company entered into two new long-term revolving credit facilities totaling $350 million, which support the Company's commercial paper borrowings. The Company is required to pay minimal annual commitment fees to maintain these facilities. Consistent with management's intent to maintain its commercial paper on a long-term basis, and as supported by the long-term credit facilities, the Company has included in long-term debt $339 million of commercial paper outstanding as of March 31, 1996. 3. On April 1, 1996, the Company retired $30 million principal amount of First Mortgage Bonds, 5.125% Series, which matured on that date and redeemed $100 million principal amount of First Mortgage Bonds, 9% Series, due April 1, 2022 at 105.89% of the principal amount of such bonds, plus accrued interest to date. 4. In 1994, the Board of Directors of the Company authorized the repurchase of up to 10 million shares of the Company's common stock on the open market. In accordance with the stock repurchase program, the Company has purchased approximately 8.6 million shares through March 31, 1996. 5. Contingencies existing as of the date of these statements are described below. No significant changes have occurred since December 31, 1995, with respect to the commitments discussed in Note 10 of the financial statements included in the Company's 1995 Annual Report to Shareholders. a) In the Company's retail jurisdictions, provisions for nuclear decommissioning costs are approved by the North Carolina Utilities Commission and the South Carolina Public Service Commission and are based on site-specific estimates that included the costs for removal of all radioactive and other structures at the site. In the wholesale jurisdiction, the provisions for nuclear decommissioning costs are based on amounts agreed upon in applicable rate agreements. Based on the site-specific estimates discussed below, and using an assumed after-tax earnings rate of 8.5% and an assumed cost escalation rate of 4%, current levels of rate recovery for nuclear decommissioning costs are adequate to provide for decommissioning of the Company's nuclear facilities. The Company's most recent site-specific estimates of decommissioning costs were developed in 1993, using 1993 cost factors, and are based on prompt dismantlement decommissioning, which reflects the cost of removal of all radioactive and other structures currently at the site, with such removal occurring shortly after operating license expiration. These estimates, in 1993 dollars, are $257.7 million for Robinson Unit No. 2, $235.4 million for Brunswick Unit No. 1, $221.4 million for Brunswick Unit No. 2 and $284.3 million for the Harris Plant. These estimates are subject to change based on a variety of factors including, but not limited to, cost escalation, changes in technology applicable to nuclear decommissioning, and changes in federal, state or local regulations. The cost estimates exclude the portion attributable to North Carolina Eastern Municipal Power Agency, which holds an undivided ownership interest in the Brunswick and Harris nuclear generating facilities. Operating licenses for the Company's nuclear units expire in the year 2010 for Robinson Unit No. 2, 2016 for Brunswick Unit No. 1, 2014 for Brunswick Unit No. 2 and 2026 for the Harris Plant. The Financial Accounting Standards Board has reached several tentative conclusions with respect to its project regarding accounting practices related to closure and removal of long-lived assets. The primary conclusions as they relate to nuclear decommissioning are: 1) the cost of decommissioning should be accounted for as a liability and accrued as the obligation is incurred; 2) recognition of a liability for decommissioning results in recognition of an increase to the cost of the plant; 3) the decommissioning liability should be measured based on discounted future cash flows using a risk-free rate; and 4) decommissioning trust funds should not be offset against the decommissioning liability. An exposure draft was issued in February 1996, and it is uncertain what impact, if any, the final statement may have on the Company's accounting for decommissioning and other closure and removal costs. b) As required under the Nuclear Waste Policy Act of 1982, the Company entered into a contract with the U. S. Department of Energy (DOE) under which the DOE agreed to dispose of the Company's spent nuclear fuel. The Company cannot predict whether the DOE will be able to perform its contractual obligations and provide interim storage or permanent disposal repositories for spent nuclear fuel and/or high-level radioactive waste materials on a timely basis. With certain modifications, the Company's spent fuel storage facilities are sufficient to provide storage space for spent fuel generated on the Company's system through the expiration of the current operating licenses for all of the Company's nuclear generating units. Subsequent to the expiration of the licenses, dry storage may be necessary. c) The Company is subject to federal, state and local regulations addressing air and water quality, hazardous and solid waste management and other environmental matters. Various organic materials associated with the production of manufactured gas, generally referred to as coal tar, are regulated under various federal and state laws, and a liability may exist for their remediation. There are several manufactured gas plant (MGP) sites to which the Company and certain entities that were later merged into the Company may have had some connection. In this regard, the Company, along with other entities alleged to be former owners and operators of MGP sites in North Carolina, is participating in a cooperative effort with the North Carolina Department of Environment, Health and Natural Resources, Division of Solid Waste Management (DSWM) to establish a uniform framework for addressing those sites. It is anticipated that the investigation and remediation of specific MGP sites will be addressed pursuant to one or more Administrative Orders on Consent between DSWM and individual potentially responsible parties. To date, the Company has not entered into any such orders. The Company continues to investigate the identities of parties connected to MGP sites in North Carolina, the relative relationships of the Company and other parties to those sites and the degree, if any, to which the Company should undertake shared voluntary efforts with others at individual sites. The Company has been notified by regulators of its involvement or potential involvement in several sites, other than MGP sites, that require remedial action. Although the Company cannot predict the outcome of these matters, it does not expect costs associated with these sites to be material to the results of operations of the Company. The Company has recorded a liability for the estimated costs associated with investigation and remediation activities for certain MGP sites and for sites other than MGP sites. This liability is not material to the financial position of the Company. Due to the lack of information with respect to the operation of MGP sites for which a liability has not been accrued and due to the uncertainty concerning questions of liability and potential environmental harm, the extent and cost of required remedial action, if any, are not currently determinable. The Company cannot predict the outcome of these matters or the extent to which other MGP sites may become the subject of inquiry. EX-27 7 FINANCIAL DATA SCHEDULE
UT THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM (INTERIM FINANCIAL STATEMENTS AS OF MARCH 31, 1996) AND IS QUALIFIED IN ITS ENTIRETY BY REFERENCE TO SUCH FINANCIAL STATEMENTS. 0000017797 CAROLINA POWER & LIGHT COMPANY 3-MOS DEC-31-1995 MAR-31-1996 PER-BOOK $6,322,936 $490,864 $610,348 $610,042 $171,782 $8,205,972 $1,204,901 ($790) $1,435,916 $2,640,027 $0 $143,801 $2,552,415 $0 $0 $0 $268,366 $0 $0 $0 $2,601,363 $8,205,972 $783,585 $77,095 $552,062 $629,157 $154,428 $14,590 $169,018 $50,672 $118,346 $2,402 $115,944 $65,405 $44,676 $208,660 $0.81 $0.81
-----END PRIVACY-ENHANCED MESSAGE-----