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HomeMy WebLinkAboutSutton Glennallen Application for Intertie Loan 1994COPPER VALLEY ELECTRIC ASSOCIATION, INC. P.O. BOX 45 GLENNALLEN, ALASKA 99588-0045 Glennallen (907) 822-3211 Valdez (907) 835-4301 Telefax # (907) 822-5586 July 22, 1994 Mr. Herv Hensley, Director Division of Energy Department of Community & Regional Affairs 333 West Fourth Avenue Suite 220 Anchorage, Alaska 99501-2341 SUBJECT: — Application for Intertie Loan Dear Herv: It was certainly our pleasure to meet with you on July 12, 1994, to discuss proceeding with securing the state loan for the Sutton to Glennallen intertie. As we discussed, it is CVEA’s desire to secure the loan funds as quickly as possible, and your pledge to assist in that endeavor is most welcome. I have enclosed two copies of the loan application with required attachments for your consideration. Attachment A, the resolution authorizing the execution of loan documents, was approved at the regular monthly Board of Directors meeting on July 20, 1994. Attachment B, Project Schedule, is derived primarily from the R.W. Beck feasibility study. Milestones, as suggested in your July 11, 1994, letter, have been added to the project schedule. Attachment C, Project Budget, was developed primarily from the Beck cost estimate. Attachment D, Project Cashflow, was developed from the Beck estimated cost of power analysis as to the timing of anticipated loan disbursements. Given it is our desire to expedite the project wherever possible, we would hope flexibility would be provided with respect to adjusting the timing of draws as warranted. During our meeting, we also discussed several issues with respect to the loan agreement, which as yet are undecided. Those issues and a brief statement outlining our concerns and desires are as follows: SERVING MEMBER-OWNERS IN THE COPPER RIVER BASIN AND VALDEZ Application for Intertie Loan July 18 1994 Page 2 Loan Security As provided for in AS 42.45.010(e), CVEA requests the loan be unsecured. The purpose of this request is to avoid the time consuming process associated with obtaining a lien accommodation from REA, CVEA’s primary lender. From a security standpoint, CVEA is a regulated electric utility authorized by the Alaska Public Utilities Commission to set rates with which to recover operating expenses and has demonstrated over the past 35 years a substantial history of repaying long-term loans from REA. In addition, precedent exists in making unsecured loans for electric systems, as the distribution system for INN Electric was financed in such a manner. Loan Amortization CVEA requests that payments commence one year after the project is energized. Rather than request a deferment of principal payments, as provided for under the legislation, CVEA believes a one-year delay following project completion would be reasonable and consistent with the timing of receipt of the benefits from the transmission line. Custody of Funds/Inflation Proofing CVEA requests that the entire amount of the loan be transferred to a third party custodian (trustee) and that the trustee be responsible for investing and disbursing said funds. CVEA would prefer that the trustee be National Bank of Alaska. NBA appears as a logical choice because they are not only Alaska’s largest bank but they also maintain a branch in Glennallen, which would reduce administrative costs for CVEA. The basis for inflation-proofing the loan is the fact that the legislature approved the loan in 1993 and, based on 1993 dollars, approved $35,000,000. Since the cost of the project will grow with inflation, it is appropriate that interest accrue to the benefit of the project to satisfy legislative intent. Ample precedent exists to inflation-proof this project. Most recently, the two Railbelt interties, which were part of the same legislation authorizing this loan, were allowed to retain interest for their projects. Although those projects involved grant funding, there would appear to be little other practical difference with respect to the issue of retaining interest income for the benefit of the project. Study Costs CVEA currently has approximately $800,000 invested in assessing the feasibility of the project. During the 1993 legislative session, the AEA at one time had a line item for the cost of this feasibility study in their proposed budget. At the time the legislation authorizing the transmission line was passed, the AEA budget for the feasibility study was deleted. Application for Intertie Loan July 18 1994 Page 3 It is my understanding that the legislature specifically requested that the study be deleted on the justification that those costs should be incorporated into the project cost. In other words, the feasibility costs would have to come from the zero interest loan. Section 4(a) of Chapter 19, Alaska Statutes, directs the loan would be made under the provision of AS 42.45.010. Paragraph (b)(1)(A) of Section 42.45.010 authorizes loans to be made, in addition to other purposes, for “reconnaissance studies, feasibility studies, license and permit applications, preconstruction engineering, and design of power projects.” It would appear to us the above referenced provisions would provide complete authority to include the study costs as allowable expenses against the loan funds. CVEA requests that we be allowed to recover our study investment from the state loan. We would anticipate drawing those funds once the loan is approved. Herv, I believe this letter pretty well summarizes where CVEA is on the outstanding issues. Once again, I would like to express my appreciation to you for your cooperation and assistance in moving forward with this project. I’ll look forward to hearing from you soon on the application and the undecided issues relative to the disbursement and administration of the loan funds. In the meantime, if I can furnish additional information, please call me or Robert Wilkinson. Yours truly, vA Clafi. Mthane Clayton Hurless General Manager Attachments d:\word\cdh\94-118db.doc STATE OF ALASKA DEPARTMENT OF Walter Hickel, Governor COMMUNITY & REGIONAL AFFAIRS Edgar Blatchford, Commissioner DIVISION OF ENERGY POWER PROJECT FUND LOAN APPLICATION i. BORROWER ELIGIBILITY a. State the legal name of the applicant: Copper Valley Electric Association, Inc. b. Applicant is a(n) (circle one): © Regional Electric Authority ° Municipality ° City ° Regional or Village Corporation ° Borough ° Village Council ° Non-profit Marketing Cooperative ° Independent Power Producer 2. AUTHORIZATION Include as "Attachment A" a certified copy of the resolution or other official action by the governing body of the applicant authorizing this loan application. See Attachment A, Resolution 94-02, Power Project Fund Loan Application, Sutton- Glennallen Intertie. Be CONTACT PERSON State the name, title, and address of the official correspondent or representative of the applicant for the purposes of this application: Clayton Hurless, General Manager P.O. Box 45 Glennallen, Alaska 99588 (907) 822-3211 Fax (907) 822-5586 Home (907) 822-3769 4. APPLICANT'S OFFICERS State the names and titles of the principal officers, including the chief executive officer or general manager, of the applicant: James R. Gifford, President Eleanor Sutton, Vice President Fred Williams, Treasurer John Stelling, Secretary Clayton Hurless, General Manager 93Q3/DS5430(2) Power Project Fund Loan Application Page I 5. ADVISORS OR CONSULTANTS State the name and address of the engineer, legal counsel, financial advisor or consultant, and any management, engineering, design, economic, or other advisors or consultants which the applicant may have for this project: Engineer Financial : Michael E. Easley, PE Robert A. Wilkinson, CPA CVEA CVEA P.O. Box 927 P.O. Box 45 Valdez, Alaska 99686 Glennallen, Alaska 99588 (907) 835-4301 (907) 822-3211 Legal Counsel Financial Advisors Richard Huffman John Rogers, Regional Vice President Kemppel, Huffman & Ginder National Rural Utilities Cooperative 255 East Fireweed Lane Suite 200 Finance Corporation Anchorage, Alaska 99503 10302 149th Street Court East (907) 277-1604 Puyallup, Washington 98374 (206) 840-0772 Allan Yost, General Field Representative Rural Electrification Administration 13621 Venus Way Anchorage, Alaska 99515 (907) 345-8446 , 6. LOAN AMOUNT State the total amount of loan requested: $__35.0 million 7. PROJECT DESCRIPTION a. Provide a general description of the use to which the loan funds will be applied: The loan funds will be used to finance, in part, the design and construction of a 138 kilovolt transmission line and associated substations (the Project) which would interconnect the CVEA electric system to the Railbelt Energy Grid. b. Describe the location of the project: Per letter received July 11, 1994, disregard. Cc Provide a comprehensive statement clearly demonstrating public need for the project and the project's eligibility under AS 44.83.170. Per letter received July 11, 1994, disregard. 93Q3/DS5430(2) Power Project Fund Loan Application Page 2 d. Include as Attachment B a project schedule and budget. The project schedule should include estimated dates for major project milestones (e.g., acquisition of permits, acquisition of rights-of-way, APUC approval of wholesale power agreement, commitment for supplemental financing, start and completion of project construction). The project budget should be presented by major task, with a schedule and budget associated with each task. See Attachments B through D. 8. PROJECT FEASIBILITY a. For a loan to construct, equip, modify, or expand a project, provide information from which the Energy Authority may determine that the project is technically and economically feasible, based on a feasibility study which generally complies with 3 AAC 94.060. This information is to be presented as attachments to this application and should include: - all project construction costs Attachment B - all project operating costs Attachment C - timing and amount of estimated power output from the completed project Attachment D - benefit to cost ratio Attachment E - estimated cost of power based on hypothetical financing conditions Attachment F - possible effects of the project on the environment of the area to be served by Attachment G the project - availability of other financing Attachment H - estimates of major indirect costs and benefits Attachment I - assumptions which affect economic feasibility of the project, including Attachment J electric load growth assumptions - a description of any alternatives to the project Attachment K Per letter received July 11, 1994, disregard. b. Provide information from which the Division of Energy may determine that the applicant has the financial ability, including, where necessary, the authority to charge and collect rates, fees, or rentals, or in the case of a municipality, to levy taxes to generate sufficient revenue to repay the loan: Per letter received July 11, 1994, disregard. G Describe how the Power Cost Equalization Program, if eliminated, would affect the repayment of this loan: Per letter received July 11, 1994, disregard. 93Q3/DS5430(2) Power Project Fund Loan Application Page 3 } PERMITS State the status of any proceedings undertaken by the applicant to obtain permits, certificates, or other authorizations from any federal, state, or legal agency necessary to begin, complete, and operate the project: CVEA will initiate the process of obtaining the necessary permits and other required certificates or approval as soon as this loan can be finalized and the funds established in an assured account. 10. FINANCIAL STATEMENTS Provide as "Attachment L" financial statements of the applicant and any other party or parties acting as guarantor of the loan. These financial statements must include, where possible, balance sheets and profit- and-loss statements and must be certified by an independent certified public accountant. Per letter received July 11, 1994, see Attachment E. il. OWNER'S BUSINESS HISTORY In the case of an investor-owned electric utility, provide as Attachment M a business history of any person or entity owning or controlling 10 percent or more of the applicant's stock or business: Per letter received July 11, 1994, disregard. 930Q3/DS5430(2) Power Project Fund Loan Application Page 4 POWER PROJECT FUND LOAN APPLICATION LIST OF ATTACHMENTS Attachment A Resolution 94-02 Attachment B : Project Schedule Attachment C Project Budget Attachment D Project Cashflow Attachment E Audited Financial Statements and REA Form 7 Financial & Statistical Reports 1993 1992 1991 CVEA May 1994 Financial Statement COPPER VALLEY ELECTRIC ASSOCIATION, INC. RESOLUTION 94-02 POWER PROJECT FUND LOAN APPROVAL SUTTON-GLENNALLEN INTERTIE WHEREAS, Copper Valley Electric Association Board of Directors has recognized the need to seek additional power supply resources for its members; and WHEREAS, the Sutton to Glennallen 138 kv Transmission Line has been identified as the most promising alternative; and WHEREAS, the Eighteenth Alaska Legislature appropriated $35,000,000 from the Railbelt Energy Fund to the Power Project Fund administered by the Department of Community & Regional Affairs and authorized a 50-year, zero-interest loan to Copper Valley Electric Association for the design and construction of the Sutton to Glennallen transmission line (Chapter 19, Section 4); and : WHEREAS, said zero-interest loan was subject to a feasibility study and plan of finance satisfactory to the Commissioner of the Department of Community and Regional Affairs; and WHEREAS, said feasibility study was completed by R.W. Beck & Associates and the plan of finance was completed by J.C. Bradford; and WHEREAS, Mr. Edgar Blatchford, Commissioner of the Department of Community and Regional Affairs, has determined via memorandum dated July 5, 1994, that the feasibility study and plan of finance satisfy legislative intent; and WHEREAS, it is the desire of the Board of Directors to secure the aforementioned funding which enhances the economic feasibility of the project; now, therefore BE IT RESOLVED, the Copper Valley Electric Association Board of Directors approves the loan application to secure the $35 million, zero-interest loan from the State of Alaska Power Project Loan Fund for the design and construction of the Sutton to Glennallen transmission line; and BE IT FURTHER RESOLVED, the Board authorizes the General Manager to execute said loan application in the name of the Association; and Resolution 94-02 Page 2 BE IT FURTHER RESOLVED, the Board authorizes the President and Secretary to execute loan agreements and, upon execution of said agreements, authorizes the General Manager to receive fund disbursements, both conditions subject to written recommendation of General Counsel. Approved and signed this 20th day of July, 1994, in Valdez, Alaska. Secre t (seal) PROJECT SCHEDULE 1993 1994 1995 1996 1997 1998 1999 2000 Name Q2 | Q3 | Q4 | QI | Q2 | Q3 | Q4 | QI | Q2 | Q3 | Q4 | QI | Q2 | Q3 | Q4 | QI | Q2 | Q3 | Q4 | QI | Q2 | Q3 | Q4 | QI | Q2 | Q3 | Q4 | QI | Q2 | Q3 Planning Stage WCVMMW0M@@JJ@@Mw-:; | | t | | Feasibility Study YU: Z YU | | Plan Of Financing WS 4 Financing Obtained > Negotiation of Power Supply Agreement 6 Signing of Power Supply Agreement 7 | Approval of PSA By APUC = 8 Approval of PSA By REA 9 Application for Supplemental Financing | 10 | Approval of Supp Financing by Lender | 11 |REA Approval of Project - | 12 Environment 13. | Environment Assessment | 14 | Borrowers Environment Report | 15 | R/W Permitting — 16 | Application | 17 | Field Studies | | 18 | Review 19 | R/W Acquisition 20 | Ownership List - 21 | Temp. Easements 22 =| Easement Acquisitions 23 ‘| Preliminary Design Stage | 24 ~~ ‘| Final Route Selection - 25 Aerial Survey and Control Panels — = 26 [Plan And Profile Drawings 27 | Geotechnical Investigation — Attachment B PROJECT SCHEDULE 1993 1994 1995 1996 1997 1998 1999 2000 Name Q@ | Q3 | Q4/ Ql Q4 | QI | Q2 | Q3 | Q4 | QI | Q2 | DW | Q4 | QI | Q | QS | Q4 | QI | Q@ | Q3 | Q4 | QI | Q | Q3 | Q4 | Q! | Q2 | Q3 WUE Final Systems Studies Meteorological study | | | | Final Design Stage Final Design Transmission Line Final Design Substations Structure Staking/CL Survey Substation Major Equipment Spec : | ns/Contrac T-Line Technical Specific Sub. Technical Spee/Contract WM. Contract 1 Major Substation Equipment YM. Bid Period/Award HMMA | Performance | YM Md | i Yyy Contract 2 Clearing/Access Roads WMMM@@ Bid Period/Award | UM | Schedule A/East Schedule B/Ahtna_ : | - | Contract 3 & 4/T-Line Construction | | 46 Bid Period Award 47 _ | Mobilization 48 = | Structure Delivery | | Conductor Delivery Foundation/Anchor Zone | Foundation/Anchor Zone 2 Foundation/Anchor Zone 3 & 4 Structure Installation Conductor Stringing Attachment B PROJECT SCHEDULE 1993 1995 1996 1997 1998 1999 2000 ID Name Q2 | Q3 QI {| Q2 | Q3 | Q4 | QI | Q2 | Q3 | Q4 2 | Q3 Q2 | Q3 2 | Q3 | Q4 | QI | Q2 | Q3 55 | Final Inspection/Cleanup | | 56 Contract 5/Substation Construction | 57 | Bid Period/Award | 58 [Civil Works | 59 | Equipment Erect =P 60 Testing SSS 61 |Energization == Attachment B COPPER VALLEY ELECTRIC ASSOCIATION SGL PROJECT BUDGET 21-Jul-94 PROJECT BUDGET CONSTRUCTION 25,688,091 SUBSTATIONS 3,618,219 ENGINEERING SERVICES SURVEY 1,339,900 STRUCTURE STAKING HELICOPTER SUPPORT LINE ENGINEERING 912,500 SUBSTATION ENGINEERING 350,500 METEORLOGICAL STUDY 35,000 GEOTECHNICAL SUPPORT 700,000 ENVIRONMENTAL, ROW, PERMITTING 2,118,000 ROW CLEARING 2,792,960 MOBILIZATION 1,284,405 CONSTRUCTION MGMT _ 2,159,352 OWNER COSTS 1,360,392 ALL CONTINGENCIES 5,245,037 47,604,356 OTHER COSTS INFLATION 6,223,644 FINANCING COSTS 100,000 CONSTRUCTION INTEREST 600,000 INTEREST EARNINGS (2,541,528) FEASIBILITY STUDY 472,000 CVEA PREAPPROVAL COST 328,000 5,182,116 TOTAL PROJECT COST 52,786,472 ATTACHMENT C COPPER VALLEY ELECTRIC ASSOCIATION PROJECT CASHFLOW QTR DCRA LOAN FWNHKRWNHKRWNK YEAR 1994 1995 1995 1995 1995 1996 1996 1996 1996 1997 1997 1997 1997 BEGIN BALANCE 35,000,000 32,069,680 30,456,003 28,826,189 27,180,077 25,517,504 23,120,485 20,699,494 18,254,294 15,784,642 10,603,175 5,369,893 84,278 DRAW (3,264,000) (1,924,750) (1,924,750) (1,924,750) (1,924,750) (2,639,000) (2,639,000) (2,639,000) (2,639,000) (5,312,750) (5,312,750) (5,312,750) (84,278) (37,541,528) SUBTOTAL 31,736,000 30,144,930 28,531,253 26,901,439 25,255,327 22,878,504 20,481,485 18,060,494 15,615,294 10,471,892 5,290,425 57,143 0 ATTACHMENT D AVERAGE BALANCE 33,368,000 31,107,305 29,493,628 27,863,814 26,217,702 24,198,004 21,800,985 19,379,994 16,934,794 13,128,267 7,946,800 2,713,518 INTEREST 333,680 311,073 294,936 278,638 262,177 241,980 218,010 193,800 169,348 131,283 79,468 27,135 2,541,528 ENDING BALANCE 32,069,680 30,456,003 28,826,189 27,180,077 25,517,504 23,120,485 20,699,494 18,254,294 15,784,642 10,603,175 5,369,893 84,278 0 COPPER VALLEY ELECTRIC ASSOCIATION, INC. FINANCIAL STATEMENTS AND ADDITIONAL INFORMATION FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992, SUPPLEMENTARY REPORTS FOR TH YEAR ENDED DECEMBER 31, 1993 TE AND INDEPENDENT AUDITORS' REPORT Attachment E COPPER VALLEY ELECTRIC ASSOCIATION, INC. TABLE OF CONTENTS Page INDEPENDENT AUDITORS' REPORT | FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992: Balance sheets 2 Statements of operations 3 Statements of equities = Statements of cash flows 5 Notes to financial statements 7 SUPPLEMENTARY REPORTS FOR THE YEAR ENDED DECEMBER 31, 1993: Independent auditors' report on the internal control structure 14 Independent auditors' report on compliance 16 ADDITIONAL INFORMATION FOR THE YEARS ENDED DECEMBER 31, 1993 AND 1992: Schedule of operations and patronage : capital by district-1993 17 Schedule of operations and patronage capital by district-1992 18 Deloitte & Touche 5 Suite 1500 Telephone: (907) 272-8462 TAS 550 West 7th Avenue Facsimile: (907) 264-3181 ; Anchorage, Alaska 99501 INDEPENDENT AUDITORS' REPORT To the Board of Directors Copper Valley Electric Association, Inc. Glennallen, Alaska We have audited the balance sheets of Copper Valley Electric Association, Inc. as of December 31, 1993 and 1992, and the related statements of operations, equities. and cash flows for the years then ended. These financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits in accordance with generally accepted auditing standards and the standards for financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of Copper Valley Electric Association, Inc., as of December 31, 1993 and 1992, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audits were conducted for the purpose of forming an opinion on the financial statements taken as a whole. The additional information on pages 17 and 18 is presented for the purpose of additional analysis of the financial statements, rather than to present the results of operations and patronage capital of the Copper Basin and Valdez districts, and is not a required part of the financial statements. This additional information is the responsibility of the Association's management. Such information has been subjected to the auditing procedures applied in our audits of the financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the financial statements taken as a whole. |) ball f Tose February 25, 1994 Deloitte Touche Tohmatsu International COPPER VALLEY ELECTRIC ASSOCIATION, INC. BALANCE SHEETS DECEMBER 31, 1993 AND 1992 ASSETS 1993 1992 UTILITY PLANT: Plant in service, at cost $27,713,019 $27,044,254 Construction work-in-progress 15.144 127,900 27,728,163 27,172,154 Less accumulated provision for depreciation and amortization 12.489.165 11,623,878 15,238,998 15,548,276 NONCURRENT ASSETS: Investments in associated organizations 860,929 837,217 Nonutility property 9,000 9.000 869,929 846,217 CURRENT ASSETS: Cash and cash equivalents - Cash - general 350,33 505,519 Temporary investments 999,037 1,513,858 Cash - loan funds 2 2 Accounts receivable, less allowance for doubtful accounts of $27,000 and $23,500, respectively 1,063,166 751,061 Accrued utility revenues 507,316 482,472 Due from the Project Management Committee and Alaska Energy Authority (AEA) 231,383 190,439 Cost of Power Adjustment 92,242 Materials and supplies 447,473 476,916 Prepaid expenses 26,404 23,039 Other current assets 6.404 5.904 Total current assets 3,723,766 3,949,210 DEFERRED CHARGES 606.269 62,502 TOTAL $ 20,438,962 $20.406.205 See notes to financial statements. EQUITIES AND LIABILITIES 1993 1992 EQUITIES: Memberships $ 128 Sica 10,960 Patronage capital 7,733,405 7,357,835 Donated capital 2,985 2,985 Total equities 7,747,675 7,371,780 LONG-TERM DEBT: Rural Electrification Administration mortgage notes, less current maturities 10,661,665 11,176,490 CURRENT LIABILITIES: Accounts payable 698,066 511,666 Due to the Project Management Committee 180,223 144,968 Cost of power adjustment 111,537 Consumer deposits 99,463 119,203 Taxes accrued 33,256 27,301 Other current and accrued liabilities 382,034 312,296 Current portion of long-term debt and capital leases 516.000 501.000 Total current liabilities 1,909,042 1,727,971 CONTRIBUTIONS IN AID OF CONSTRUCTION 120,580 129,964 CONTINGENCIES AND COMMITMENTS (NOTES I & K) TOTAL $20,438,962 $20,406,205 COPPER VALLEY ELECTRIC ASSOCIATION, INC. STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31. 1993 AND 1992 1993 1992 OPERATING REVENUES $ 10,275.836 $ 8,737,519 OPERATING EXPENSES: Purchased power 3,233.224 2,406,351 Power production 3,010,038 2,836,054 Administrative and general 821.504 767,965 Depreciation and amortization 792,274 747,881 Distribution - maintenance 514,254 SIOST7 Distribution - operations 468.478 387,161 Consumer accounts 303.545 257,508 Customer service and information 80.707 49,184 Taxes 33,256 27,301 Other deductions 150.060 39.809 Total operating expenses 9,407,340 8,029,591 INTEREST EXPENSE 504.299 523,802 Net operating margins 364,197 184,126 NONOPERATING MARGINS: Patronage capital from associated organizations 34,286 79,221 Interest income 81,087 152.998 NET MARGINS $ 479.570 $§ 416,345 See notes to financial statements. 3 COPPER VALLEY ELECTRIC ASSOCIATION, INC. STATEMENTS OF EQUITIES YEARS ENDED DECEMBER 31, 1993 AND 1992 Patronage Patronage capital capital Donated Memberships assigned unassigned capital Total BALANCE, January 1, 1992 $10,520 $6,366.076 S$ 761,652 $ 2,985 $7,141,233 New memberships, net of cancellations 440 440 Patronage capital assigned 761,652 (761,652) Retirement of capital credits (186,238) (186,238) Net margin 416.345 416.345 BALANCE, December 31, 1992 10,960 6,941,490 416,345 2,985 7,371.780 New memberships, net of cancellations 325 325 Patronage capital assigned 416,345 (416,345) Retirement of capital credits (104,000) (104.000) Net margin 479.570 479.570 BALANCE, December 31, 1993 $11,285. ($7.253°835 $ 479.570 $2,985 $7,747,675 See notes to financial statements. 4 COPPER VALLEY ELECTRIC ASSOCIATION, INC. STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31. 1993 AND 1992 1993 * 1992 OPERATING ACTIVITIES: Net margins $ 479,570 $ 416,345 Adjustments to reconcile net margins to net cash provided by operating activities: Depreciation and amortization 909.121 868,414 Capital credits from associated organizations (23,712) (79,221) Recovery of bad debts 3.500 (26,005) Changes in assets and liabilities which provided (used) cash: Accounts receivable (315,605) (21,646) Accrued utility revenues (24,844) (1,613) Due from the Project Management Committee and AEA (40,944) (82,735) Materials and supplies 29,443 (106,745) Prepaid expenses (3,365) 6,360 Other current assets (500) 20,283 Deferred charges 38,724 (61,945) Accounts payable 186,400 222,383 Due to the Project Management Committee 555255) (55,882) Cost of power adjustment (203,779) 83,949 Taxes accrued 5,955 795 Other current and accrued liabilities 69.738 (85,369) Net cash provided by operating activities 1,144,957 1,097,368 INVESTING ACTIVITIES: Additions to plant (1,188,156) (2,613,306) Proceeds from sale of plant 5.823 11,781 Net cash used in investing activities 1.182.333) (2,601,525) BALANCE (carried forward) (37,376) (1,504,157) See notes to financial statements. 5 COPPER VALLEY ELECTRIC ASSOCIATION, INC. STATEMENTS OF CASH FLOWS (continued) YEARS ENDED DECEMBER 31. 1993 AND 1992 BALANCE (brought forward) FINANCING ACTIVITIES: Repayments of long-term debt Payments to retire patronage capital credits Deposits received Deposits refunded Principal payments under capital lease obligation (Reimbursement) receipt of contributions in aid of construction Use of contributions in aid of construction Proceeds from memberships Payments to refund memberships Net cash used in financing activities DECREASE IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS: Beginning of year End of year SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for interest during the year See notes to financial statements. 993 $ (37,376) (499,826) (104,000) 72,368 (92,108) (9,384) 1,900 (1.575) (632,625) (670,001) 2.019.377 $1,349.376 $_504.299 1992 $(1,504, 157) (501,467) (186,238) 96,087 (198,624) (7,595) 57,964 (61,889) 1,945 (1,505) (801,322) (2,305,479) 4.324.856 $2.019.377 $_523,802 COPPER VALLEY ELECTRIC ASSOCIATION, INC. NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1993 AND 1992 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting records: The accounting records of Copper Valley Electric Association, Inc. (the Association) conform to the Uniform System of Accounts prescribed by the Federal Energy Regulatory Commission as modified for Electric Borrowers of the Rural Electrification Administration (REA). The Association is subject to the regulatory authority of the Alaska Public Utilities Commission (APUC) as to rates and various other matters. The Association maintains separate accounting records for the Copper Basin and Valdez districts for determining assignment of patronage capital and for rate making purposes. All of the customers of the Association are located in the Copper Basin and Valdez area. Plant additions and retirements: Additions and replacements of plant in service are recorded at the original cost of contracted services, direct labor, materials, and indirect overhead charges. Except for certain specifically identifiable units of property, replacements and retirements of plant are charged to the accumulated provision for depreciation at the average unit cost of the property unit, plus removal cost, less salvage. The cost of replacement is added to the plant in service. Interest during construction: The Association capitalizes interest on short-term borrowings used to finance construction. Interest is allocated to major construction projects. During the years ending December 31, 1993 and 1992, the Association had no short-term borrowings which would result in capitalization of interest. Depreciation and amortization: Depreciation and amortization rates are applied on a straight-line basis and at December 31, 1993 are as follows: Rate Production plant 3% Distribution plant 2.7% - 4.2% General plant: Structures and improvements 3% Office furniture 6% - 16% Transportation equipment 10% - 25% Power operated equipment 6% Communications equipment 6% Other general plant 6% Depreciation of completed construction not classified has been included in functional plant depreciation accounts in accordance with the anticipated eventual classification to utility plant. Contributions in aid of construction: Contributions in aid of construction are credited to the associated cost of construction of property units. Cash and cash equivalents: For purposes of the statement of cash flows, the Association considers all highly liquid instruments with an original maturity of three months or less, when purchased, to be cash equivalents. Materials and supplies: Materials and supplies are stated at weighted average cost. Fuel inventory is recorded under the FIFO method. Patronage capital: Patronage capital consists of undistributed net margins accumulated since inception. The distribution of such patronage capital to members of the Association is restricted under covenants of REA mortgage notes. The Board of Directors has established a twenty year patronage rotation policy. Donated capital: Donated capital consists of amounts received by the Association from escheatment of membership fees. Operating revenues: Operating revenues are based on billing rates authorized by the APUC which are applied to the customer's usage of electricity. The Association records unbilled revenues at the end of the accounting periods. Unbilled revenue is presented on the financial statements as accrued utility revenues. Cost of power adjustment: Cost of power adjustment provides for current collection of estimated amounts of fuel and purchased power costs, from that collected in the base rate for electricity, with subsequent settlement of actual costs and amounts collected. Accumulated balances or credits relating to the cost of power adjustment flow through to the consumers on a quarterly basis. ; Nonoperating margin: Nonoperating margin is an accumulation of all nonoperating margins reduced by nonoperating losses and operating losses as required by REA regulations. Ifa positive balance exists at year-end, it is transferred to patronage capital unassigned. Income taxes: The Association is exempt from federal and state income taxes under the provisions of Section 501(c)(12) of the Internal Revenue Code. Collective bargaining agreement: Employment terms and conditions for outside plant personnel are covered under a collective bargaining agreement between the Association and Local 1547 of the International Brotherhood of Electrical Workers. The agreement expires December 31, 1995. Interest on customer deposits: In accordance with Alaska law the Association pays interest on customer deposits for single meters in excess of $100. Interest is accrued at the prevailing rate received by the Association on such funds and is paid upon deposit refund. NOTE B: UTILITY PLANT Major classes of the Association's utility plant are as follows: December 31 1993 1992 Production plant $ 8,166,972 S$ 8,061,350 Distribution plant 15,975,982 14,668,457 General plant : 3,159,275 3,015,53 General plant - property under capital leases 24,261 31,750 Completed construction not classified 384,809 1,265,447 Intangible plant 1,720 1,720 Plant in service 27,713,019 27,044,254 Construction work-in-progress 15.144 127,900 $27,728,163 $27,172,154 A summary of the provision for depreciation and amortization follows: Year ended December 31. 1993 1992 Depreciation and amortization expense $ 792,274 S$ 747,881 Depreciation and amortization charged to operating expense or construction accounts 116.847 120,533 $_909,121 $_868.414 NOTE C: INVESTMENTS IN AND TRANSACTIONS WITH ASSOCIATED ORGANIZATIONS A summary of investments in associated organizations consists of the following: December 31. 1993 199 National Rural Utilities Cooperative Finance Corporation (NRUCFC): Capital term certificates $ 372,350 $ 372,350 Membership 1,000 1,000 Alaska Rural Electric Cooperative Association (ARECA) Insurance Exchange 487,312 463,600 Ruralite - patronage capital credits 267 267 $ 860.929 $_837,217 The Association purchased insurance coverage during the years ended December 31, 1993 and 1992, from ARECA Insurance Exchange for $246,363 and $226,111, respectively. NOTE D: DEFERRED CHARGES Deferred charges consist of the following: December 31 1993 1992 Intertie feasibility study $582,491 S - Work plan 12,988 16,291 Long range power study 10,790 17,071 Temporary facilities 29,140 $606.269 $_ 62.502 Temporary facilities are electric facilities which will be retired within one year of the balance sheet date. Other deferred charges are amortized over a two to five year period. The Intertie feasibility study costs will be capitalized or written off after final determination of project feasibility (see Note K). NOTE E: LONG-TERM DEBT Long-term debt to REA consists of 2% and 5% mortgage notes payable as follows: December 31 1993 1992 2% mortgage notes payable § 2.212.402 $ 2.409.728 5% mortgage notes payable 8.964.081 9.266.085 11,176,483 11,675,813 Less current maturities 514.818 499.323 $10,661,665 $11.176.490 Each of the notes are for 35 year periods and all assets are pledged as security. The notes are scheduled to be fully repaid at various dates from 1997 to 2020. The Association incurred interest expense on REA mortgage notes of $504,299 and $523,088 in 1993 and 1992, respectively. Future minimum lease payments under office equipment capital leases together with the present value of the net minimum lease payments at December 31, 1993, are $1,182 and are reflected in the financial statements as current portion of long-term debt. Amortization of leased property under capital leases has been included in depreciation expense. Total long-term debt matures as follows: Year ending December 31 Amount 1994 S$ 516,000 1995 535,000 1996 556,000 1997 577,000 1998 575,000 Thereafter 8.417.483 NOTE F: UNADVANCED LOAN FUNDS The Association has entered into a line-of-credit agreement with NRUCFC for $1,000,000. The entire amount was available during 1993 and 1992 except for $153,752 which until June 1993 was reserved as additional insurance reserves, if necessary, to the ARECA Insurance Exchange. Pursuant to a deposit premium agreement, funds were to be available for ARECA's use upon demand through June 30, 1993. 10 NOTE G: RETURN OF CAPITAL Under provisions of the long-term debt agreement, until total equities and ‘margins equal or exceed 40% of the total assets of the Association. the return to patrons of capital contributed by them is limited to 25% of the net margins received by the Association in the preceding year. The Board authorized the retirement of 18% of 1982 patronage capital in 1993. The retirement which totaled $104,000 is reflected as a reduction of patronage capital and includes $1,859 for early estate retirements during the year ended December 31, 1993. The Board authorized the retirement of 30% of 1982 patronage capital in 1992. The retirement which totaled $186,238 is reflected as a reduction of patronage capital and includes $7,925 for early estate retirements during the year ended December 31, 1992. NOTE H: PENSION PLANS Pension benefits are provided for substantially all employees through the International Brotherhood of Electrical Workers (IBEW) for union employees and the National Rural Electrical Cooperative Association (NRECA) for nonunion employees. The Association funds pension costs at rates as determined by NRECA and the collective bargaining agreement with IBEW Total pension costs for union employees were $161,136 and $163,817 in 1993 and 1992, respectively. The plans are multi-employer plans in which the accumulated benefits and plan assets are not determined or allocated to an individual employer. In August 1987, NRECA declared a moratorium on contributions to the pension plan to avoid over-funding of the plan. No contributions were made for the period January 1, 1992 through December 31, 1993 for non-union employees. The Association participates in a 401(k) plan for all full time employees. The Association contributes 1% of employee wages to the plan. Contributions for the year ended December 31. 1993 and 1992 were $18,933 and $18,594, respectively. NOTE I: PURCHASE COMMITMENTS On October 28, 1985, the Association entered into a 45 year agreement with four other utilities and the Alaska Energy Authority (AEA) to purchase wholesale power from four State of Alaska hydroelectric projects collectively known as the Four Dam Pool (Project). The agreement includes the Solomon Gulch hydroelectric project in Valdez. In addition, the Association entered into a separate agreement with the AEA to operate and maintain the Solomon Gulch project on behalf of the State of Alaska. The Project Management Committee (PMC), created by the agreement, consists of a representative from the AEA and each of the five purchasing utilities. PMC is responsible for administering the purchase agreement and annually determining the wholesale power rate. 11 The five purchasing utilities collectively bear the pooled cost of operating and maintaining the Project. This is achieved through the purchase of power from the PMC at the established wholesale power rate, which is the sum of the following two components: |. Power production cost component - Power production costs used in determining this component include operating costs of the facilities, joint insurance costs, specific administrative and general costs of the AEA, cost of the PMC, and an annual fixed contribution to a renewal and replacement fund for Project facilities. nN Debt service component - This component is based on contracted forecast sales determined at the inception of the agreement and is subject to revision at fifteen year intervals after the effective date of the agreement. The agreements provide for monthly payment for purchased power and collection of Operating and Maintenance (O & M) costs due the Association. As provided by the agreements, O & M costs are offset against purchased power costs with the balance remitted to the PMC monthly. A summary of the purchased power and O & M costs follows: Year ended December 31 1993 1992 Power purchased from PMC $ 3,233,224 $ 2,406,351 O & M costs collected from purchased power payments 1,033,240 1,014,545 Net payments to PMC $ 2,199.984 S$ 1,391,806 The wholesale power rate in effect during 1993 and 1992 was 6.4 cents per kilowatt hour. Throughout each contract year, the PMC analyzes whether funds collected from the purchasing utilities for power sales are sufficient to cover the pooled costs of the Project. The resultant wholesale cost of power adjustment (true-up) flows through to the wholesale power rate charged in the subsequent contract year. The Association's share of the underpayment or overrecovery will be collected through subsequent modifications of the wholesale power rate. NOTE J: REGULATORY MATTERS A cost of power adjustment tariff provides for the flow through to consumers of changes in purchased power and diesel fuel costs. The tariff provides for quarterly true-up of estimated kilowatt hour sales, purchased power and diesel fuel costs to actual sales and costs. NOTE K: CONTINGENCIES AND COMMITMENTS The Association is responsible for contaminated soil cleanup costs associated with underground fuel tanks. Costs included in distribution-maintenance for clean up activities are $37,925 and $164,833 in 1993 and 1992, respectively. Management believes that future costs of cleanup will have no material effect on the Association's financial statements. No provision for future costs associated with the cleanup are included in current year operations. 12 During 1993, the Association entered into a Memorandum of Agreement with the Alaska Energy Authority to conduct a feasibility study of a proposed 138 kilovolt transmission line between Sutton and Glennallen. The study. which is to be conducted in accordance with the former AS 44.83.161, is requisite to obtaining a $35,000,000, no-interest loan appropriated by the State of Alaska legislature in 1993. As of December 31, 1993, the Association has capitalized costs for the study totaling $582.491 which are reflected in deferred charges in the financial statements. Under the Memorandum of Agreement, the Association is obligated to incur an additional $25,000 for the preparation of a plan of finance. The final feasibility report is expected to be issued in March 1994, and accordingly, the future of the project is not presently determinable. Should the project go forward, study costs will remain a project cost. If the project is determined to be unfeasible, accumulated costs would be amortized to expense subject to approval of the Alaska Public Utilities Commission. NOTE L: MAJOR CUSTOMERS During the year ended December 31, 1993, the Association sold power to two major customers. Revenue recognized for each major customer was $1,428,114 and $1,332,186. During the year ended December 31, 1992, the Association sold power to one major customer. Revenue recognized from the major customer was $1,411,436. 13 SUPPLEMENTARY REPORTS Deloitte & Touche 4 550 West 7th Avenue Facsimile: (207) 2 JN Suite 1500 Telephone: (907) 272- Anchorage, Alaska 99501 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE To the Board of Directors Copper Valley Electric Association, Inc. Glennallen, Alaska We have audited the financial statements of Copper Valley Electric Association. Inc. as of and for the year ended December 31, 1993, and have issued our report thereon dated February 25. 1994. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. In planning and performing our audit of the financial statements of Copper Valley Electric Association. Inc. for the year ended December 31, 1993, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. The management of Copper Valley Electric Association, Inc. is responsible for establishing and maintaining the internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with generally accepted accounting principles. Because of inherent limitations in any intemal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Cycles of activity: Billings and collections » Purchases/disbursements » Payroll/personnel » Work orders = General ledger » Property Deloitte Touche Tohmatsu International 14 For all of the internal control structure categories listed above. we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation. and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the intemal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. However, we noted certain matters involving the internal control structure and its operation that we have reported to the management of Copper Valley Electric Association, Inc. in a separate letter dated February 25, 1994. This report is intended for the information and use of the board of directors. management. and the Rural Electrification Administration and supplemental lenders. This restriction is not intended to limit the distribution of this report, which is a matter of public record. labile Tucks February 25, 1994 15 Deloitte & Touche JN Suite 1500 Telephone: (907) 272-8462 Cm 550 West 7th Avenue Facsimile: (907) 264-3181 Anchorage, Alaska 99501 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE To the Board of Directors Copper Valley Electric Association. Inc. Glennallen. Alaska We have audited the financial statements of Copper Valley Electric Association. Inc. as of and for the vear ended December 31, 1993, and have issued our report thereon dated February 25. 1994. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with laws, regulations, contracts. and grants applicable to Copper Valley Electric Association. Inc. is the responsibility of the Association's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Association's compliance with certain provisions of laws. regulations, contracts, and grants. However. the objective of our audit of the financial statements was not to provide an opinion on overall compliance with such provisions. The results of our tests indicate that. with respect to the items tested, Copper Valley Electric Association. Inc. complied, in all material respects. with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that Copper Valley Electric Association, Inc. had not complied. in all material respects, with those provisions. We also noted immaterial instances of noncompliance that we have reported to the management of Copper Valley Electric Association, Inc. in a separate letter dated February 25. 1994. This report is intended for the information and use of the board of directors, management. and the Rural Electrification Administration and supplemental lenders. This restriction is not intended to limit the distribution of this report. which is a matter of public record. LD pboil f [ore February 25, 1994 Deloitte Touche Tohmatsu International 16 ADDITIONAL INFORMATION COPPER VALLEY ELECTRIC ASSOCIATION, INC. SCHEDULE OF OPERATIONS AND PATRONAGE CAPITAL BY DISTRICT YEAR ENDED DECEMBER 31, 1993. - OPERATING REVENUES OPERATING EXPENSES: Purchased power Power production Administrative and general Depreciation and amortization Distribution - maintenance Distribution - operations Consumer accounts Customer service and information Taxes Other deductions Total operating expenses INTEREST EXPENSE Net operating margins NONOPERATING MARGINS: Patronage capital from associated organizations Interest income NET MARGINS PATRONAGE CAPITAL: Beginning of year Less retirement of patronage capital credits End of year Copper Basin Valdez Total $ 3,397,169 $ 6,878,667 $10,275,836 900,651 2330505 3/235 224 838,509 2ATVS29 3,010,038 226,913 $94,591 821.504 383,966 408,308 792,274 341,878 172,376 514,254 148,465 320,013 468.478 80,898 222.647 303,545 21,444 59.263 80,707 9,264 23,992 33,256 133.780 16.280 150,060 3,085,768 6,321,572 9,407,340 297.739 206.560 504.299 13,662 350,535 364,197 10,340 23,946 34,286 26,759 54.328 81,087 50,761 428,809 479,570 2,781,227 4,576,608 72357.835 37,044 66.956 104.000 $ 2.794.944 S$ 4.938.461 S$ 7,733,405 17 COPPER VALLEY ELECTRIC ASSOCIATION, INC. SCHEDULE OF OPERATIONS AND PATRONAGE CAPITAL BY DISTRICT YEAR ENDED DECEMBER 31. 1992 OPERATING REVENUES OPERATING EXPENSES: Purchased power Power production Administrative and general Depreciation and amortization Distribution - maintenance Distribution - operations Consumer accounts Customer service and information Taxes Other deductions Total operating expenses INTEREST EXPENSE Net operating margins (loss) NONOPERATING MARGINS: Patronage capital from associated organizations Interest income NET MARGINS PATRONAGE CAPITAL: Beginning of year Less retirement of patronage capital credits End of year Copper Basin Valdez Total S' (522191933) | |S) 525173586 |) S) 82757/519 805,225 1,601,126 2,406,351 949,014 1,887,040 2,836,054 250,620 517,345 767,965 371,703 376,178 747,881 260,237 250,140 SLO3TT 177,783 209,378 387,161 75,719 181,789 257,508 15,973 33.211 49.184 9,136 18,165 27,301 16.309 23.500 39,809 2,931,719 5,097,872 8,029,591 309,004 214.798 $23,802 (20,790) 204,916 184,126 vbr pA 51,494 79,221 56,626 96.372 152.998 63,563 352,782 416,345 2,779,803 4,347,925 7,127,728 62.139 124.099 186.238 $2,781,227 S$ 4.576.608 S737, 835 18 TTT) cae i Te eee : Alaska 18 Cosser Vallev 3CRACWEA NAME ANO ACC FINANCIAL AND STATISTICAL REPORT Cepver Valley Electric Assec. inc Pi (O- BOxile5 Glennallen, ax $9588 CTIONS - Suémit an original and wo cocies ‘o REA. Reund ail amcunts 12 | PERICC ENCED REA SSE CALY gcilar. For detailed insrucicns, see REA Suiletin 17173-2 | December 31, i993 CERTIFICATION hereby certify that the entries in this report are in accordance with the accounts and other records of the system and reflec: the Status cf ihe ‘em to the best of our knowledge and belief. L INSURANCE REQUIRED BY PART 1788 OF 7 CFR CHAPTER XVII, REA, WAS IN FORCE DURING THE REPORTING RIOD AND RENEWALS HAVE BEEN OBTAINED FOR ALL POLICIES , Co 2-24-94 OfFIGE MANAGER OR ACCOUNTANT Cave Poh 2-30-94 4] SIGNATURE CF MANAGEA Treo LLL 7% PART A. STATEMENT OF OPERATIONS : YEAR-TO-DATE . apes ITEM [ —TASTYEAA | THISYEAR 7 ——sunaer THIS MONTH (a) (2) (c) fe) 2rating Revenue and Patronace Cacital ..............s0-0-s00 8 237 5S) 10,275,836 9,994,766 aL TAC OL ver Production Excense .. Bien2arsisyors 2,964,838 3,416,406 an4 a16 stof Purchased Power 2,406,351 3,243,907 2.608.234 369,991 asmission Exoense .............-.. 21,039 34517 921370 (4624) tribution Expense - Operation .. 387,161 468,478 504,184 £5,398 tribution Exoense - Maintenance SLO; 377 514,254 480,414 25 941 stomer Accounts Expense .......... 257,508 303,545 325,248 | 44,078 stomer Service and Informational Excense .. 49,184 80,707 92,371 | A625 Slexpensel eee eens 1,382 | 2,012 2,350 845 ministrative and General Exoense . 767,965 821,504 | 843,855 119.685 ‘tal Qoeration & Maintenance Excense (2 thru 10). 7,215,982 | 8,433,762 8,285,812 e46317 oreciation and Amortization Excense 747,881 792,274 £04,757 79,698 x Expense - Property and Gross Receipts 27,301 33,256 ee Ld a.ne4 x Exoense - Other 0 0 Qo a 2rest on Long-Term Debt soe 523,088 504,299 4,41 £0 022 zrest Charged to Construction - Crecii eae o uli Kis o Kk a} erest Expense - Other .. 4,431 2,726 10,000 209 rer Deductions 34,710 145.322 9 3145392 tal Cost of Electric Service (// thru 18) - 8,553,393 9,913,639 9638 944 1,29 25: tronage Cacital & Ooerating Margins (J minus 19) 184,126 364,197 355,222 922959) in-Operating Margins - Interest 138,104 61.539 57.200 5645 ewance for Funds Used Ouring Construction 0 0 Qo 4 some (Loss) from Equity Investments .. o | 0 | 0 4 in-Ocerating Margins - Other .............. 14,894 - 19.548 - 14,904 2.469 sneration and Transmission Cacital Crecits 0 0 0 a her Capital Credits and Patronace Dividends 79,221 4 22,21 | a wtraorcinary Items .. 0 itronage Cacital or Margins (20 thru 27)... eee 416.345 PART B. DATA O YEAR-TO-DATE ITEM LAST Y THIS YEAR (a) (o) ew Services Connected | 74_ | 69 __|5. Miles Transmission| Avil i 6. Miles Distribution - i fices Retired | 5 | Overhead | otal Services in Place | 3035 | lle Services 7 Exclude Seasonal) . : | . \Form7 (Rev. 12-93) ; _Page 1 of 7 Pcges M2G3NG 40 CUYYS~ Vasacy FINANICAL AND STATISTICAL REPORT _ [pesicoenceo REA USE ONLY mber 1 “UCTIONS - See REA Bulletin 17178.2 | December 31, 1993 PARTC. BALANCE SHEET ASSETS AND OTHER DESITS UABIUTIES AND OTHER CAEDITS . Total Utility Plant in Service 27,713,019 | 30. Memberships .. . Construction Work in Progress . 597,635 | 31. Patronage Cagital .. . Total Utility Plant (J + 2)..... 28,310,65 32. Cperating Margins - Pricr Years 0 . Accum. Provision for Depreciation and Amort. . 12,489,165 | 33. Cgerating Margins - Current Year .. 1o7 . Net Utility Plant (3 - 4) ..... 15,821,489 | 24. Non-Operating Margins .... UUSis3) . Non-Utility Property (Net) .. ©,000 | 35. Other Margins and Equites .. 2,985 . Investments in Subsidiary Companies 487,579 | 26. Total Margins & Equities (30 thru 35) 7,747,675 - Invest. In Assoc. Org. - Patronage Capital ........... Q_| 37. Long-Term Debt - REA (Net) Leo ees . Invest. In Assoc. Crg. - Cther - General Funds .... 37372350 (Payments-UnappliedS$__ . Invest. In Assoc. Org. - Cther - Nengeneral Funds 38. Long-Term Debt - REA - Econ. Cevel. (Net) - Investments in Economic Development Projects . 3S. Long-Term Debt - Other - REA Guaranteed. . Other Investments 40. Long-Term Debt - Cther (Net) — SSO ee ees . Special Funds 0 41. Total Long -Term Debt (37 thru 40)... 869 922 aa 039 sont ae a ee “5 0 0 ¥ 11,176,483 . Total Other Property and Investments (6 thru 13) . 42. Ctligations Under Capital Leases .. C fs Casha Geri@tanl: ie Sexes atc ictvciscrceneneen 43. Accumulated Operating Provisions 5 0 i. Cash - Construction Funds - Trustee .. 44, Total Other Noncurrent Uabilites (42 + 43) = Q ", Special Deposits .. ASS Notes Paya bU@ cise svosccscssn-nssersateee Sesssesesies = fe} aca 46. Accounts Payable... . 878 ,28¢ 2.287 _| 47. Consumers Deposits . a 99.453 964 423 48. Other Current and Accrued Uabilities . 416.465 poss: 7 -ECIEE —_—_447, £72 __ . Temporary Investments .. . Notes Receivable (Net) . . Accounts Receivable - Sales of Energy (Net) ccounts Receivable - Other (Net) ... :. Materials and Supplies - Electric and Other .. 3 48. Total Current & Accrued Liabilities (+5 thru 42)... 1,394,217 447 4 §0. Deferred Crecits 2 120,589 0 35 PED DRY ICTS ss cccs cosets sczvicasasvescascortsatsetoctocentesveeceee 5. 4ns_| 51. Accumulated Deferred Income Taxes Fi §, Other Current and Accrued Assets 513,663 _| 52. Total Liabilities and Other Crecits 20,438,955 5. Total Current and Accrued Assets (J/5 thru 24) ...... 36327527 (36 + 41+ 44 +49 thru S51) ae 3. Regulatory Assets 0 ESTIMATED CONTRIBUTIONS IN AID OF CONSTRUCTION 7. Other Deferred Debits ...........cccceseee §3. Balance Beginning of Year ... 120 a84 3. Accumulated Deferred Income Taxes 5 Q__| 54. Amount Received This Year (Net) . (9324) 9, Total Assets and Other Debits (5+/4+25 thru 28) 20,438,955 | $5. Total Contributions in Aid of Construction . 120,83: PART D. NOTES TO FINANCIAL STATEMENTS HIS SPACE BELOW IS PROVIDED FOR IMPORTANT NOTES REGARDING THE FINANCIAL STATEMENT CONTAINED IN THIS REPORT. F ADDITIONAL SPACE IS NEEDED, USE SEPARATE SHEET.) y © - 0 o eS ct He w He 3 'S w n ct a te BK fs) o iN) w Unbilled revenue (507,316) is not in Part C Lir Eres atradnnc ce tle de en st aaddeeeses eee, REA Form7 = (Rev. 12-93) . : Page 2 of 7 Pcges *INANCIAL AND STATISTICAL REPORT Alaska 18 Copoer Valley | PERICO ENCED REA USE CALY STIONS - See REA Bulletin 17173-2 | December 31, 1993 PARTE CHANGES IN UTIUTY PLANT ITEM OF YEAR TRANSFERS (a) (3) (c) (c) (e) fd Lane Rignss (360) 235s 233,754 tea and irproverenss (361) — | 81,314 18,952- 100,266 | 3.6 Equiomers (262) — 844,763 742,170 1.586.933 waa 0 Banary Equioment (363) —__. (e) 0 Towers, and Fastures (264) —__ 4,642,181 226,120 4,868 ,30) 3.2 vad, Concucors and Cevices (345) 3,701 ,987 191 ¢ 416 7a jfourd Concut (266) fr 39,592 64,795 | 104,387 agus! round Concucar & Cevicss (267 2,894,507 29,564 | 2,924,071 | 326 arstonmers (268) 1,35 1 Nae (6,478) 1,257,872 24 v3 (369) —_. — 442,59} 32,847 (2235034 475,088 23 (370) -———————. _ 336 424 Ney. 639 2. 2920) S52 788 Ts tion on Consumers’ Premises (271) 101,314 4,637 (15,811)] 29,140 352 Property on Consumers’ Pr emnises (372) | | | Ughting (373) | ITAL - Cisrbution (7 are 14) 14,668,458 | Lip 332, 453 a PS797Si,982 fed Land Rights (229) - | | tes and irproverents (290) —— 1,669,659 | 1,669,659 3.0 Fumdure & Equipment (39!) ——- 439,140 - 34,820 (9,822)] $64,138 Gare snaiion Equiomert (292) 688,472 74,945 (14,957) | _ 748,460 LOZ 5) Toois, Shop, Garage, and t | tory Equicment (293, 254, 395) 98,804 46,7398 145,602 6.C + Coerated Equipment (295) —— | | unication Equipmact (297) ——— 140,198 | 2,308 142,506 €.0 lanecus Ecuiomert (358) -——__. Z Tae nOO, 2.164 13.173 6.6 Tangible Provemy (299) ——___ 4 DTAL- General Pant (isan | 3,047,280 161,035 (24,779) _'_ 3,193,536 bles 301, 372.2) Ha 1,720 | | 1,720 ind Land Rignss, Reads and '350, 139) L 0s and lgroversents (252) - | \ Equipmers (53) | 3S and Fixtures and Poles and ¥s (354, 355) a ead Concveses & Devices (256) — | 3| | | ground Conduit (357) [2 | ground Concucors & Cevices (354) OTAL - Transmission Plant =) on Plart - Steam (3/0 - 316) —— | ion Plant - Nucaar (J20- 325) | ston Plant - Hydro (330 - 336) —__. [= E (on Part - Cther (340-346) —_— 8,061,349 105,623 | __ 8,166,972} Ualty Plant (102, 104-106, 114, 118) 1,265,447 384,809 | (1,265,447)] 384,809 E "OTAL (15425 e25*Mo15 rw 39) — trucion Work in Progress (107) —— WLUTLITY PLANT (a0 41) ——— 27,044,254 “127,900. 27,172,154 Form 7 “ (Rev. 12-93) 1,983,920 469,735. 2,453,655, (1,315,155) ne Bl 5973635" eas Page 3 of 7 Peses ‘RUCTICNS + See REA Bulletin 17173-2 | December 31, 19 93 cam | PART F. ANALYSIS OF ACCUMULATED PROVISIONS FOR DEPRECIATION - TOTAL ELECTRIC PLANT CISTAIBUTICN GENERAL PLANT TRANSMISSION ~ CTHER PLANT TEM : PLANT oA (<) (3) (c) ; (Cj lalance Sesinning of Year ..........ceccsesssscssssseess 5.716.761 1.300 449 @. 894 ces \ecisens - Ceprecaion Acouais Charged 3: b Ceprectason Expense o.scsesscssessesssnecsesssssees 492,379 56.6538 1. Ctearing Accounts and Cthers .. oe | ITE RA, s Subtctal (a +d) = 492.370 ue 505 .2s$ - Plant Retirements: L Plant Retired...... (24,929) (24,779) 0 1, Removal Casts 0 Q 0 » Suttctal (a +b) .. (24,929) (24,779) | o. *tus Salvaged Materials . 1.973 3850 4 TOTAL (2¢ - 3¢ + 4)... coos | 4aS 414 159 STA 243,245 oher Acjusiments - Cebit er Crecit Q _ 0 0 Zalance End of Year (1 + 5 +6) ....cessescssccescsees 6,184 1758 1.474.017 ; 2.238 nin” PART G. MATERIALS AND SUPPLIES _ BALANCE BEGINNING | PURCHASED SALVAGED USED (Met) soup ADJUSTMENT BALANCE EM OF YEAR ENO OF YEAR (c) ) (c) ) (e) ‘D iy) Heevic a7eoi7 _| 373297026! 277/432 113,354.87 s.¢a7) | (4,943) | 447,472 wher (155 +158) | | | ] | | | lato of Inventory Tunover - Electric | /ta41 4. Inventory - Elecsic as Percent cf Total Uslity Plant re tem 16 + C232) = 31.9 le z Temazerane *- 100= 415 PART H. SERVICE INTERRUPTIONS | AVERAGE HOURS FER CONSUMER BY CAUSE TOTAL TEM POWER SUPPLIER EXTREME STORM PSEARRANGED | ALL OTHERS | (2) (d) (c) (2) (e) Present Year | ~-.0 0.38 0.001 | 1.79 | 2.17 ive-Year Average| 1.05 2.26 0.37 | 143 | <0 PART |. EMPLOYEE-HOUR AND PAYROLL STATISTICS. Number of Fuil Time Employees 2 4. Payroll - Expensed | 3.678.955 Emplcyee - Hours Worked - Regular Time 85,438 5. Payroll - Cacitaitzed | 399.976 Employee - Heurs Worked - Overime § 971 6. Fayrol- Cher | bmi Wa PART J. EA RONACE CAPITAL PART K. DUE FROM CONSUMERS TEM THIS YEAR CUMULATIVE FOR ELECTRIC SERVICE (c) (3) Gereral Retirement 1, Amcunt Oue Over 60 Days $ 412g Total Retirements (1 + 2) | 104,000 1401 ,998 5 Patronage Capital Assigned % oe ; 7,253,835 2 Ameunt Wrsen Cft During Year Patronace Capital Assicnable FE inate e 479,570 $5,300 PART L kWh PURCHASED AND TOTAL COST REA USE ONLY : Aen INCLUOED IN TOTAL CCST TEM See kWh PURCHASED JOTAL COST PER kWh FUEL COST WHEELING AN (cents) AQJUSTMENT i (a) (d) fc) (2) (e) A fe) _ snercy Authority. 50,519,133 | 3,233,225 | .064 | 0 | 0 Other Exvenses | : 10,68 | | {EA Form7 = (Rev. 12-93) - Pege 4 of 7 Pcces Rlace> 18 Conner Yyalle: FINANCIAL AND STATISTICAL REPORT pendent OR ete REA USE ONLY JCTIONS = See REA Bulletin 7178-2 December 31, 19 93 | PART M. LONG-TERM LEASES ([f additional sgace is needed use separate sheet.) T BELOW ALL "RESTRICTED PROPERTY™ HELD UNDER “LONG-TERM” LEASE. (Ifnone, stare “NONE") | RENTAL NAME OF LESSOR TYPE OF PROPERTY | THIS YEAR (c) (3) {ce} wn | “OTAL | RESTRICTED PROPERTY™ mecns ail properties other than automobiles, wuck:, trailers, traciorz, other vehicles (including without limitation cirerart and ships), oie. garcze nd werehouse space end fice equipment (and without limitation comouwers), “LONG-TERM” mecns lecses having unexpired terms of more than 12 morths (ick: g scount terms of rental at the option of the lessor, whether or not such leases hove been renewed). PART N. ANNUAL MEETING AND BOARD DATA Date of Last Annual Meeting 2. Total Number of Members 3. Number of Memters Present at 4. Was Cuorum Present? leeting Avril 30, 1993 2264 1s9 krves OF bs Number of Members Voting by 6. Total Number of Board Memters |7. Total Amount of Fees and Expenses|8. Oces Manager Have Written Proxy or Mail for Beard Memters Contract? 607 8 $26,890 O yes f& vo PART O, LONG-TERM DEBT AND DEBT SERVICE REQUIREMENTS BALANCE _|__ BILLED THIS YEAR REA USE EM ENDOF YEAR | — INTEREST PRINCIPAL TOTA ONLY (a) (8) (c) (2) (e} Rural Electrification Administration (Excludes REA - Eccnomic Developmert Locns) 11,176,483 504,299 499,329 1,002,622 National Aural Utilites Cooperative Finance Corporation Bank for Cocperatives = Federal Financing Bank REA - Econemic Develooment Loans Other (List Sencrately) TOTAL (Swm of I thr 9) 11,176, 48 504,299 499,329 1,003 628 PART P. CONSERVATION DATA LAST YEAR THIS YEAR LAST YEAR THIS YEAR ITEM (a) (d) ITEM (a) (b) «nber of Employees - Full Time 0 | 0 | 4. Payroll . Number of Employees - Part Time 0 5. Cther Expenses 0 6. Member Contacts . Total Employees - Hours ‘EA Form7 = (Rev. 12-93) 5 Page 5 of 7 Paces FINANCIAL ANU SIALIODHICAL REPU! PERICS ENCED REAUSE CALY JCTIONS - See REA Bulletin 17173-2 December 31, 1993 PART R. POWER REQUIREMENTS DATA BASE CONSUMER FICATION = SALES JANUARY FESRUARY MARCH APSIL MAY JUNE AND REVENUE DATA (c) (o) (c) (2) (e) o 2. No. Consumers Served 2,276 2,279 “2,269 2,273 2,281 Sane {pate soe 1,697,665 1 1,519,2251 1,172,842 | 1,222,012 11,081,141 |: < Revenue 270,795 253,384 233,933 206,319 215,590 | a. Ne. Consumers Sarved —— 2 kWh Sold © Revere i a No. Consumers Served ' nSaes & kWh Sod i © Reverue 2. No. Consumers Served 518 518 Sit 516 520 —= [a kwh Soa _ 3,869,051 | 3,023,79¢1 3.117,943 | 2,972,023 | 2,800,627 | 2.11 g c Revenue 495,018 448,796 470,173 411.747 495,717 516.673 | a No, Consumers Served 2 2 2 2 2 2 : A 424,714] _ 883,374) 1,118,234 | 1,146,695 113,191,630 | 1.210.330 ¢ Revere 60,556 96,135 114,927 116,344 | 122.170 124.300 | 2 Na. Consumers Served | 18 18 1g 18 18 is_| rtghing EEN Set 14,307 11,500 9,191 | 8,569 6,552 4,721 |! & Revenue 2,365 2,063 1,801 1,601 "1,452 1,077_| a. No. Consumers Served 61 61 62 62 61 €2_ | dette [a kwm Sait 110,949 101,085 101,283 101.176 87,870 26.873 | & Revenue l "16,721 16,303 16.873 | 15,685 16,061 15,241 -! “| a. No. Consumers Served = | w Resaes- |» ywn Sod i noses cc Revenue | i a No. Consumers Served 7 w Resaes- | n Kin Sod - ; cc Revenue | No. Consumars (lines 12 - 9a) - 2,875 2,878 2,868 2,871 - 2,882 2,902 KVM Sold (Ines 1B - So} 6,116,686| 5,538,983] 5,519,491 | 5,450,475 | 5,167,820 | 5,481,807 Revenue Received From Saves of Energy Gnes te $e} 845,455 820,681| $817,712 751,696 850,990 858,726 Meare Ri . nsec neverve 545 460 280 3,773 | 15390 870 wn Used 30,328 24,124 20,903 23.023 16,761 10,364 XWh Purchased “ | 2,126,528] 1,838,327] 2,157,503 | 1,830,395 | <.sss.124 5,636,424 kWh G lariat 3,805,480 5 220,026 3,941,225 | 3,559,800 67,486 (31,034 IP Generati * wrchases and Genero | 466 ,027 453,536| 479,312 467,741 585,997 487,116 ange - kWh - Net | ~| Te ~~ t : | Sum Al kW Input (Metered) coincident — Non Coincident 11,300 11,300 10,600 -107000 | --.. 10,500 10,000 \Form7 (Rev. 12-93) is Pace é of 7 Faces Alaska 18 Copper Valley RICO ENCED December 31, 1993 PART R. POWER REQUIREMENTS DATA BASE (Consinued) (SEE PRECEDING PAGE 6 OF REA FORM 7 FOR HEACINGS CF LINE ITEM NUMBERS 8ELOW.) FINANCIAL AND STATISTICAL REPORT TRUCTICNS - See REA Bulletin 17178-2 nmEA USE CNLY os JULY AuGusT | SEPTEMBER | OCTOBER | NOVEMBER | DECEMBER sdhidas {SER (3) (a) (i) (i) (x) (!) 2,305 2,318 2,328 2,326 2,330 2,331 979,066 | 1,016,492 | 1,215,461 | 1,137,801 | 1,288,674 | 1,491,246 208,301 196,485 208,936 213,254 234,904 299,686 — Plelelelelolelelole le K x 523 531 532 531 530 529 2,769,251 | 3,383,728 | 3,065,622 | 2 se | 2,871,410 | 3,020,584 © 526,191 | 519,790 513,755 467,9 441,112 544,904 a] aul 2 2 i: | 2 2 tet 1,238,940 | 1,337,100 | 1,310,740 | 1,286,010 | 1,135,000 | 1,147,070 ¢ 143,855 158,083 150,315 134,842 121,242 122,088 a 18 18 17 a7) 17 a7 b 3,967 |- 5,265 9,166 10,448 | 12,589 13,476 © 1,011 1,170 | 1,691 2,027 2,340 | 2,782 Ls 62 63 | 64 63 63 63 she 74,926 | . 73,580 | 92,818 | 95,210 105,283 107,392 1,138,445 e | "--_ 14,690 13,097 | 14,543 | 16,250 | 17,634 20,399 | $3,502 a | | | | b | | | e | | a | | | 1 | a | | | | e | | | | [e | 2,910 | 2,932 | 2,943 2,939 2,942 2,942 | 5,066,150 | 5,816,165 | 5,693,807 | 5,461,573 | 5,412,956 | 5,779,768 66,505,681 | 894,048 | 888,625 | 889,241 834,319 817,232 989,859 10,256,578 | 1,165 950 | 1,075 795 815 540 19,258 | 12,102 : 11,033 | 13,762 | 15,287 19,485 22,909 220,081 | 5,838,451 | 6,399,720 | 5,928,234 | 6,143,427 | 3,848,956 | 2,815,984 50,539,133 : | (23,239) (92, a (123,251) (16,428)] 2,074,851 3,700,114 | ‘20,692,111 | Se MINS 3127, S02 537, ste 532,185 530,357 522,279 | 663,304 6,243,262 130,700 10,800 : 11,400 Tais dota will de azed DV KZA 19 review your jucm.e + -- USDA-REA NVESTMENTS, LOAN GUARANTEES AND LOANS - DISTRIBUTION December 31, 1$s3 srresse ad” and “Exciuced™ Inve sant cstegcries reperied sn in eslumn (2). Both “In RUCTICNS - Regorting of Investments Is required by 7 CFR I7i7, Su son REA Form 7, Part C. Identity investmenss primarily for Rural Cevele ibe reported. See Bulletin 17178-2, Guide For Preparing Firancial and Statistical Rezerts, for comelete insvuciens. PARTI. INVESTMENTS (See instructions for cetinitions of Income or Loss) DESCRIPTION INCLUOED EXCLUCED INCOME OR LOSS nD TT (s) (s) (s) (2) () fe) (2 tei ICN-UTILITY PROPEATY (NET) . 3_lots - Alpine Estates ¢ 000 NVESTMENTS IN ASSCCIATED ORGANIZATICNS \. see attached continuation sheet » ie : 487,579 ® -Totals ale + STMENTS IN ECONOMIC OEVELCPMENT PROJECTS 373,350 Pee 4. | e. Totals OTHER INVESTMENTS e. Torals SPECIAL FUNDS | | 3IAL DEPOSITS | 2 City of valdez - Valdez, AX Wtr/sewer a 0 b. e ¢. e. Totals 50 | ok Pane TAH Dave 79 O21 INVESTMENTS, LOAN GUARANT AND LOANS - DISTRIBUTION my o i 1 1 INCOME CAL =- | DESCRIPTION as =| (3) | | | fe} (3 | fs} | ‘eo 4 RARY INVESTMENTS NRECSC - Commessial Paser zo & sMMMITMENTS TO INVEST WITHIN 12 MONTHS BUT NOT ‘TUALLY PURCHASED | Torais *~ ae TAL CF INVESTMENTS (1 thru 10) 1,160,994 1,388,487 PART IL LOAN GUARANTEE ORGANIZATION MATURITY ORIGINAL AMOUNT LOAN BALANCE £3 DATE (S) (S) i (<) (i (ch ( Le : i ! STALS ? OTALS (!nctude Loan Guarantees sriy) | : | | ements (Perth, 115} A ve 4a RTIV. LOANS ATUR TAD ‘ — arance eam ORGANIZATION MA yuan ORIGINAL AMOUNT LOAN BALANCE RO DATE (S) (S) (2) @) (e) @) | tei lcyees, Olficers. Directors | | eeu: | | tessy Rescurce Conservation Loans | | \ | | | | | | | I | | | | | | TOTALS ‘A Fom7a_ (Rev. 12-93) Poge 2 og Foc aS ee es ie AND LOANS. CONTINUATION SHEET December = 19 ¢3 INVESTMENT TRUCTIONS - Reporting of invesiments is required + eguire "AO" in csiuma (e}. DESCAIPTION INCLUDED EXCLUDED INCOME CA LESS i (30 (3) (3) | (i (cj (2) i i | | (c) | Investments in assoc. Orc. | ‘ ——ABECA Ins. Exchance - Patronace Cas. oaeeca Membershio ! ‘ ns _NeUCC Geoi tal Tern Certicicares : 372.3520 ; as —— NZ cr i Duralite — Datronace Caoistal Tatale ] ] ! | | ] | | | | | | | | | | Torm7a &12h (Rev. 12-93) CONTINUATION SHEET Pese_>_ of COPPER VALLEY ELECTRIC ASSOCIATION, INC. FINANCIAL STATEMENTS AND SUPPLEMENTARY FINANCIAL REPORTS AND ADDITIONAL INFORMATION FOR THE YEARS ENDED DECEMBER 31, 1992 AND 1991 AND INDEPENDENT AUDITORS' REPORT COPPER VALLEY ELECTRIC ASSOCIATION, INC. TABLE OF CONTENTS Mo p> 19 a INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 1992 AND 1991: Balance sheets Statements of operations Statements of equities Statements of cash flows Notes to financial statements SUPPLEMENTARY FINANCIAL REPORTS FOR THE YEAR ENDED DECEMBER 31, 1992: Independent auditors' report on compliance Independent auditors’ report on the internal contro] structure ADDITIONAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1992: Schedule of operations and patronage capital by district-1992 Schedule of operations and patronage capital by district-1991 _ Un > uw ine) ~ 17 18 Deloitte & Touche A INDEPENDENT AUDITORS' REPORT Board of Directors Copper Valley Electric Association, Inc. Glennallen, Alaska We have audited the balance sheets of Copper Valley Electric Association, Inc. as of December 31, 1992 and 1991, and the related statements of operations, equities, and cash flows for the years then ended. These financial statements are the responsibility of the Association's management. Our responsibility is to express. an opinion on these financial statements based on our audit. We conducted our audits in accordance with generally accepted auditing standards and the standards for financial audits contained in Governmental Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audits to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion. In our opinion, such financial statements present fairly, in all material respects, the financial position of Copper Valley Electric Association, Inc., as of December 31, 1992 and 1991, and the results of its operations and its cash flows for the years then ended, in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information on pages 17 and 18 is presented for the purpose of additional analysis of the financial statements, rather than to present the results of operations and patronage capital of the Copper Basin and Valdez districts, and is not a required part of the basic financial statements. This additional information is the responsibility of the Association's management. Such information has been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, is fairly Stated in all material respects when considered in relation to the basic financial statements taken as a whole. Lbsillc| Toaeks February 26, 1993 Deloitte Touche Tohmatsu International COPPER VALLEY ELECTRIC ASSOCIATION. INC. STATEMENTS OF OPERATIONS YEARS ENDED DECEMBER 31. 1992 AND 1991 OPERATING REVENUES OPERATING EXPENSES: Power production Purchased power Administrative and general Depreciation and amortization Distribution - maintenance Distribution - operations Consumer accounts Customer service and information expense Taxes Other deductions Total operating expenses INTEREST EXPENSE Net operating margins NONOPERATING MARGINS: - Patronage capital from associated organizations Interest income NET MARGINS See notes to financial statements. 1992 $8,737,519 2,836,054 2,406,351 767,965 747,881 510,377 387,161 257,508 49,184 27,301 39.809 8,029,591 523,802 184,126 79,221 152.998 S__ 416.345 2,573,593 2,415,366 817,871 711,976 537,729 358,130 271,100 29,220 26,506 42.297 7,783,788 543.639 444,812 39,750 277.090 S__761.652 COPPER VALLEY ELECTRIC ASSOCIATION, INC. STATEMENTS OF EQUITIES YEARS ENDED DECEMBER 31. 1992 AND 1991 BALANCE, January 1, 1991 New memberships, net of cancellations Patronage capital assigned Retirement of capital credits Net margin BALANCE, December 31, 1991 New memberships, net of cancellations Patronage capital assigned Retirement of capital credits ~ Net margin BALANCE, December 31, 1992 See notes to financial statements. Patronage = Patronage capital capital Donated Memberships assigned = unassigned = _capital__ Total $10,235 $5,919,330 $595,643 $2,985 $6,528,193 285 285 595,643 (595,643) (148,897) (148,897) 761.652 761.652 10,520 6,366,076 761,652 2,985 = 7,141,233 440 440 761,652 (761,652) (186,238) (186,238) TL 416.345 416.345 $10.960 $6.941.490 $416.345 $2.985 $7.371.780 COPPER VALLEY ELECTRIC ASSOCIATION, INC. STATEMENTS OF CASH FLOWS YEARS ENDED DECEMBER 31, 1992 AND 1991 OPERATING ACTIVITIES: Net margins Adjustments to reconcile net margins to net cash provided by operating activities: Depreciation and amortization Capital credits from associated organizations Recovery of bad debts Changes in assets and liabilities which provided (used) cash: Accounts receivable Accrued utility revenues Due from the Project Management Committee and AEA Materials and supplies Prepaid expenses Other current assets Deferred charges - Accounts payable Due to the Project Management Committee - Cost of power adjustment — Taxes accrued Other current and accrued liabilities Deferred credits Net cash provided by operating activities INVESTING ACTIVITIES: Additions to plant Proceeds from sale of plant Net cash used in investing activities Balance carried forward See notes to financial statements. 868,414 (79,226) (26,000) (21,646) (1,613) (82,735) (106,745) 6,360 20,283 (61,945) 222,383 (55,882) 83,949 795 (85,369) 1,097,368 (2,613,306) 11,781 (2,601,525) (1,504,157) 1991 66,398 (28,743) 8,075 (18,172) 19,795 126,206 (57,731) (119,042) 44 33,262 (3,138) 1,611,637 (854,264) 13.079 (841.185) 770,452 COPPER VALLEY ELECTRIC ASSOCIATION, INC. STATEMENTS OF CASH FLOWS (continued) YEARS ENDED DECEMBER 31, 1992 AND 1991 Balance brought forward FINANCING ACTIVITIES: Repayments of long-term debt Payments to retire patronage capital credits Deposits received Deposits refunded Principal payments under capital lease obligation Receipt of contributions in aid of construction Use of contributions in aid of construction Proceeds from memberships Payments to refund memberships Release of loan funds Net cash used in financing activities INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS: SUPPLEMENTAL DISCLOSURE OF CASH FLOW Beginning of year End of year INFORMATION: Cash paid for interest during the year See notes to financial statements. 1992 1991 $(1,504,157) S$ 770,452 (501,467) (496,222) (186,238) (136,025) 96,087 98,028 (198,624) (81,229) (7,595) (8,960) 57,964 58,500 (61,889) 1,945 2,365 (1,505) (2,080) (801,322) (565,624) (2,305,479) 204,828 4.324.856 _4.120.028 $ 2.019.377 $4.324.856 COPPER VALLEY ELECTRIC ASSOCIATION. INC. NOTES TO FINANCIAL STATEMENTS YEARS ENDED DECEMBER 31, 1992 AND 1991 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting records: The accounting records of Copper Valley Electric Association, Inc. (Association) conform to the Uniform System of Accounts prescribed by the Federal Energy Regulatory Commission as Modified for Electric Borrowers of the Rural Electrification Administration (REA). The Association is subject to the regulatory authority of the Alaska Public Utilities Commission (APUC) as to rates and various other matters. The Association maintains separate accounting records for the Copper Basin and Valdez districts for determining assignment of patronage capital and for rate making purposes. Plant additions and retirements: Additions and replacements of plant in service are recorded at the original cost of contracted services, direct labor, materials, and indirect overhead charges. Except for certain specifically identifiable units of property, replacements and retirements of plant are charged to the accumulated provision for depreciation at the average unit cost of the property unit, plus removal cost, less salvage. The cost of replacement is added to the plant in service. Interest during construction: The Association capitalizes interest on short-term borrowings used to finance construction. Interest is allocated to major construction projects. During the years ending December 31, 1992 and 1991, the Association had no short-term borrowings which would result in capitalization of interest. Depreciation and amortization: Depreciation and amortization rates are applied on a straight-line basis and at December 31, 1992 are as follows: Rate Production plant 3% Distribution plant 2.7% - 4.2% General plant: Structures and improvements 3% Office furniture 6% - 16% Transportation equipment 10% -25% Power operated equipment 6% Communications equipment 6% Other general plant 6% Depreciation of completed construction not classified has been included in functional plant depreciation accounts in accordance with the anticipated eventual classification to utility plant. Contributions in aid of construction: Contributions in aid of construction are credited to the associated cost of construction of property units. Cash and cash equivalents: For purposes of the statement of cash flows, the Association considers all highly liquid instruments with an onginal maturity of three months or less, when purchased, to be cash equivalents. Materials and supplies: Materials and supplies are stated at weighted average cost. Fue! inventory is recorded under the first-in-first out method. Patronage capital: Patronage capital consists of undistributed net margins accumulated since inception. The distribution of such patronage capital to members of the Association is restricted under covenants of REA mortgage notes. The Board of Directors has established a twenty year patronage rotation policy. Donated capital: Donated capital consists of amounts received by the Association from escheatment of membership fees. Operating revenues: Operating revenues are based on billing rates authorized by the APUC which are applied to the customer's usage of electricity. The Association records unbilled revenues at the end of the accounting periods. Unbilled revenue is presented on the balance sheets as accrued utility revenues. Cost of power adjustment: Cost of power adjustment provides for current collection of estimated amounts of fuel and purchased power costs, from that collected in the base rate for electricity, with subsequent settlement of actual costs and amounts collected. Accumulated balances or credits relating to the cost of power adjustment flow through to the consumers on a quarterly basis. Nonoperating margin: Nonoperating margin is an accumulation of all nonoperating margins reduced by nonoperating losses and operating losses as required by REA regulations. If a positive balance exists at year-end, it is transferred to patronage capital unassigned. —_— Income taxes: The Association is exempt from federal and state income taxes under the provisions of Section 501(c)(12) of the Internal Revenue Code. Collective bargaining agreement: Employment terms and conditions for outside plant personnel are covered under a collective bargaining agreement between the Association and Local 1547 of the International Brotherhood of Electrical Workers. An agreement has been signed subsequent to December 31, 1992, which expires December 31, 1995. Interest on customer deposits: In accordance with Alaska law the Association pays interest on customer deposits for single meters in excess of $100. Interest is accrued at the prevailing rate received by the Association on such funds and is paid upon deposit refund. NOTE B: UTILITY PLANT Major classes of the Association's utility plant are as follows: December 31. 1992 1991 Production plant S$ 8,061,350 S$ 7,889,13+ Distribution plant 14,668,457 13, ‘936, 940 General plant 3,015,530 2,121,887 General plant - property under capital leases 31,750 40,999 Completed construction not classified 1,265,447 553,291 Intangible plant 1,720 1,720 Plant in service 27,044,254 24,543,971 Construction work in progress 127.900 72.654 $27.172.154 $24.616.625 A summary of the provision for depreciation and amortization follows: Year ended December 31. 1992 1991 Depreciation and amortization expense $747,881 S71'1,976 - Depreciation and amortization charged —_— to operating expense or construction accounts 120.533 124.079 $868.414 $836.055 NOTE C: INVESTMENTS IN AND TRANSACTIONS WITH ASSOCIATED ORGANIZATIONS A summary of investments in associated organizations consists of the following: December 31 1992 1991 National Rural Utilities Cooperative Finance Corporation (NRUCFC): Capital term certificates $372,350 $372,350 Membership 1,000 1,000 Alaska Rural Electric Cooperative Association (ARECA) Insurance Exchange 463,600 384,374 Ruralite - patronage capital credits 267 267 $837.217 $757.991 The Association purchased insurance coverage during the years ended December 31, 1992 and 1991, from ARECA Insurance Exchange in the amount of $226,111 and $256,019, respectively. NOTE D: RESTRICTED CASH AND CASH EQUIVALENTS Cash and cash equivalents includes $76,340 at December 31, 1991, of grant funds from the State of Alaska restricted for use in construction. NOTE E: DEFERRED CHARGES Deferred charges consist of the following: —December 31. _ 1992 1991 Temporary facilities $29,140 $557 Long range power study oH 17,071 Work plan 16.291 $62.502 $557 Temporary facilities are electric facilities which will be retired within one year of the balance sheet date. Other deferred charges are amortized over a two to five year period. NOTE F: LONG-TERM DEBT Long-term debt to REA consists of 2% and 5% mortgage notes payable as follows: __December 31. _ 1992 1991 2% mortgage notes payable $ 2,409,728 $ 2,623,870 5% mortgage notes payable 9.266.085 9.553.410 11,675,813. 12,177,280 Less current maturities 499 323 501,728 $11.176.490 $11.675.552 The notes are each for 35 year periods and all assets are pledged as security. The notes are scheduled to be fully repaid at various dates from 1993 to 2020. The Association incurred interest expense on REA mortgage notes of $523,088 in 1992 and $541,336 in 1991. 10 Future minimum lease payments under office equipment capital leases together with the present value of the net minimum lease payments at December 31, 1992, are $1,677 and are reflected in the balance sheet as current portion of long-term debt. Amortization of leased property under capital leases has been included in depreciation expense Total long-term debt at December 31, 1992 matures as follows: Year ending December 31 Amount 1993 , $ 501,000 1994 515,000 1995 535,000 1996 556,000 1997 567,000 Thereafter 9.001.813 $11.675.813 NOTE G: UNADVANCED LOAN FUNDS - The Association has entered into a line-of-credit agreement with NRUCFC for $1,000,000. The entire amount was available during 1992 and 1991 except for $153,752 which has been reserved as additional insurance reserves, if necessary, to the ARECA Insurance Exchange. Pursuant to a deposit premium agreement, funds are to be available for ARECA's use upon demand through December 9, 1993. NOTE H: DEFERRED CREDITS — Deferred credits includes plant installed for temporary use. Temporary facilities are recorded at cost, net of any payments received from customers. As of December 31, 1991, the Association had temporary facilities advances in excess of costs of $7,929. NOTE I: RETURN OF CAPITAL Under provisions of the long-term debt agreement, until total equities and margins equal or exceed 40% of the total assets of the Association, the retum to patrons of capital contributed by them is limited to 25% of the net margins received by the Association in the next preceding year. The Board authorized the retirement of 30% of 1982 patronage capital in 1992. The retirement which totaled $186,238 is reflected as a reduction of patronage capital and includes $7,925 for early estate retirements during the year ended December 31, 1992. The Board authorized the retirement of 22% of 1981 patronage capital in 1991. The retirement which totaled $148,897 is reflected as a reduction of patronage capital and includes $19,733 for early estate retirements during the year ended December 31, 1991. 11 NOTE J: PENSION PLAN'S Pension benefits are provided for substantially all employees through the Internationa! Brotherhood of Electrical Workers (IBEW) for union employees and the National Rural Electrical Cooperative Association (NRECA) for nonunion employees. The Association funds pension costs at rates as determined by NRECA and the collective bargaining agreement with IBEW. Total pension costs for union employees were $163,817 in 1992 and $134,283 in 1991. The plans are multi employer plans in which the accumulated benefits and plan assets are not determined or allocated to an individual employer. In August 1987, NRECA declared a moratorium on contributions to the pension plan to avoid over-funding of the plan. No contributions were made for the period January 1, 1991 through December 31, 1992 for non-union employees. The Association participates in a 401(k) plan for all full time employees. The Association contributes 1% of employee wages to the plan. Contributions for the year ended December 31, 1992 and 1991 were $18,594 and $16,977, respectively. NOTE K: PURCHASE COMMITMENTS . On October 28, 1985, the Association entered into a 45 year agreement with four other utilities and the Alaska Energy Authority (AEA) to purchase wholesale power from four State of Alaska hydroelectric projects collectively known as the Four Dam Pool (Project). The agreement includes the Solomon Gulch hydroelectric project in Valdez. In addition, the Association entered into a separate agreement with the AEA to operate and maintain the Solomon Gulch project on behalf of the State of Alaska. Fhe Project Management Committee (PMC)}created by the agreement, consists of 2 representative from the AEA and each of the five purchasing utilities. The PMC is responsible for administering the purchase agreement and annually determining the wholesale power rate. The five purchasing utilities collectively bear the pooled cost of operating and maintaining the Project. This is achieved through the purchase of power from the PMC at the established wholesale power rate, which is the sum of the following two components: 1. Power production cost component - Power production costs used in determining this component include operating costs of the facilities, joint insurance costs, specific administrative and general costs of the AEA, cost of the PMC, and an annual fixed contribution to a renewal and replacement fund for Project facilities. 2. Debt service component - This component is based on contracted forecast sales determined at the inception of the agreement and is subject to revision at fifteen year intervals after the effective date of the agreement. The agreements provide for monthly payment for purchased power and collection of Operating and Maintenance (O & M) costs due the Association. As provided by the agreements, O & M costs are offset against purchased power costs with the balance remitted to the PMC monthly. 12 A summary of the purchased power and O & M costs follows: Year ended December 31. 1992 1991 Power purchased from PMC $2,406,351 $2,415,366 O & M costs collected from purchased power payments 1.014.545 731.863 Net payments to PMC $1.391.806 $1.683.503 The wholesale power rate in effect during 1992 and 1991 was 6.4 cents per kilowatt hour. Throughout each contract year, the PMC analyses whether funds collected from the purchasing utilities for power sales are sufficient to cover the pooled costs of the Project. The resultant wholesale cost of power adjustment (true-up) flows through to the wholesale power rate charged in the subsequent contract year. The Association's share of the underpayment or overrecovery will be collected through subsequent modifications of the wholesale power rate. NOTE L: REGULATORY MATTERS A cost of power adjustment tariff provides for the flow through to consumers of changes in purchased power and diesel fuel costs. The tariff provides for quarterly true-up of estimated kilowatt hour sales, purchased power and diesel fuel costs to actual sales and costs. In April 1990, the Association was cited by the Environmental Protection Agency (EPA) for record keeping violations associated with poly chlorinated biphenyl (PCB). Subsequent to resolution of the citation, the Association has undertaken an extensive program to test and dispose of PCB contaminated equipment. Included in Distribution-Operation expense are costs associated with the PCB program of $4,096 and $173,161 for 1992 and 1991, respectively. NOTE M: CONTINGENCIES AND COMMOTTMENTS The Association is responsible for contaminated soil cleanup costs associated with underground fuel tanks. Costs included in distribution-maintenance for clean up activities are $164,833 and $37,053 in 1992 and 1991, respectively. The total cost of this cleanup cannot be reasonably estimated, however, could be significant. No provision for future costs associated with the cleanup are included in current year operations. On May 16, 1992, the Association entered into a five year agreement, for the sale of power, with a commercial customer for all of the electric power and energy the customer may need at the APUC approved commercial customer rate. There were no sales under this agreement during the year ended December 31, 1992. 13 SUPPLEMENTARY FINANCIAL REPORTS Deloitte & Touche iepnone: (£07) 272- ee 2 (G07) 264- AN INDEPENDENT AUDITORS' REPORT ON COMPLIANCE Board of Directors Copper Valley Electric Association, Inc. Glennallen, Alaska We have audited the financial statements of Copper Valley Electric Association, Inc. as of and for the year ended December 31, 1992, and have issued our report thereon dated February 26, 1993. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller.General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the Association is the responsibility of the Association's management. As part of obtaining reasonable assurance about whether the financial statements are free of material misstatement, we performed tests of the Association's compliance with certain provisions of laws, regulations, contracts, and grants. However, the objective of our audit was not to provide an opinion on overall compliance with such provisions. The results of our tests indicate that, with respect to the items tested, Copper Valley Electric Association, Inc. complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Association had not complied i in all material respects, with those provisions. We also noted immaterial instances of noncompliance that we have reported to the management of Copper Valley Electric Association, Inc. in a separate letter dated February 26, 1993. This report is intended for the information of the Board of Directors, management, the Rural Electrification Administration and supplemental lenders. This restriction is not intended to limit the distribution of this report, which is a matter of public record. Dbulle | Toaele February 26, 1993 Deloitte Touche Tohmatsu International 14 Deloitte & Touche JN Suite 150 . Telech aa 0 West 7th Avenue Facsi Anchorace, Aiaska &€! mile: (S07) 2 a Qo INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE Board of Directors Copper Valley Electric Association, Inc. Glennallen, Alaska We have audited the financial statements of Copper Valley Electric Association, Inc. as of and for the year ended December 31, 1992, and have issued our report thereon dated February 26, 1993. We conducted our audit in accordance with generally accepted auditing standards and Government_Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. In planning and performing our audit of the financial statements of the Association for the year ended December 31, 1992, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. The management of the Association is responsible for establishing and maintaining the internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition and that transactions are executed in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Cvcles of activity Revenue/receipts Purchases/disbursements Payroll Property General ledger Deloitte Touche Tohmatsu — International 15 For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the intemal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of the specific intemal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. However, we noted certain matters involving the internal control structure and its operation that we have reported to the management of the Association in a separate letter dated February 26, 1993. This report is intended for the information of the Board of Directors, management and the Rural Electrification Administration and supplemental lenders. This restriction is not intended to limit the distribution of this report, which is a matter public fécord. / pbille f Touche February 26, 1993 16 ADDITIONAL INFORMATION COPPER VALLEY ELECTRIC ASSOCIATION. INC. SCHEDULE OF OPERATIONS AND PATRONAGE CAPITAL BY DISTRICT YEAR ENDED DECEMBER 31. 1992 OPERATING REVENUES OPERATING EXPENSES: Power production Purchased power Administrative and general Depreciation and amortization Distribution - maintenance Distribution - operations Consumer accounts Customer service and information expense Taxes Other deductions Total operating expenses INTEREST EXPENSE Net operating margins (loss) NONOPERATING MARGINS: Patronage capital from associated organizations Interest income Net margins PATRONAGE CAPITAL: Beginning of year Less retirement of patronage capital credits End of year Copper Basin $3;219;933 949,014 805,225 250,620 371,703 260,237 177,783 ipHA’) 15,973 9,136 16.309 2,931,719 309.004 (20,790) 2d to. —_56.626 63,563 2,779,803 62.139 $2.781.227 1,887,040 1,601,126 517,345 376,178 250,140 209,378 181,789 33,211 18,165 23.500 5,097,872 214.798 204,916 51,494 96.372 352,782 4,347,925 124.099 $4.576.608 Total $8.737,519 2,836,054 2,406,351 767,965 747,881 510,377 387,161 257,508 49,184 27,301 39.809 8,029,591 pore) 252802) 184,126 79,221 152.998 416,345 7,127,728 186.238 $7.357.835 17 COPPER VALLEY ELECTRIC ASSOCIATION. INC. SCHEDULE OF OPERATIONS AND PATRONAGE CAPITAL BY DISTRICT YEAR ENDED DECEMBER 31, 1991. Copper Basin Valdez _ Total OPERATING REVENUES $3,235,014 $5,537,225 $8,772,239 OPERATING EXPENSES: Power production 855,540 1,718,053 2,573,593 Purchased power 802,940 1,612,426 2,415,366 Administrative and general 310,417 507,454 817,871 Depreciation and amortization 357,056 354,920 711,976 Distribution - maintenance 330,755 206,974 537,729 Distribution - operations 148,834 209,296 358,130 Consumer accounts 101,662 169,438 271,100 Customer service and information expense 9,711 19,509 29,220 Taxes 8,811 __ 17,695 26,506 Other deductions 7.841 34.456 42.297 Total operating expenses 2,933,567 4,850,221 7,783,788 INTEREST EXPENSE 320.177 223.462 543.639 Net operating margins (loss) (18,730) 463,542 444,812 NONOPERATING MARGINS: - Patronage capital from — associated organizations 13,913 25,837 39,750 Interest income 102.445 174.645 277.090 Net margins 97,628 664,024 761,652 PATRONAGE CAPITAL: Beginning of year 2,737,014 3,777,959 6,514,973 Less retirement of patronage, capital credits 54,839 94.058 148.897 End of year $2.779.803 $4,347,925 $7,127.728 18 BORACWEA CESIGNATICN USDA-REA Alaska 18 Coooer Vallev BCRACWEA NAME ANO ACCRESS Ht at a Cosser Valley P. C. Box 45 Glennallen, AX 9958S WUCTICNS - Sut: iginal arc ‘our Cozies to REA. nm mounts D PSACO ENCED oAgues REA.USE CALY EOI Se Submi an ose ang four cozies to REA. Round al amounts | December 31, 1992 auéited| FINANCIAL AND STATISTICAL REPORT CERTIFICATION : _, le hereby certify that the entries in this report are in cccordance with the accounts end other records of the sistem ard reflect the status of the ister to the best of our knowledze and belief. iLL INSURANCE REQUIRED BY PART 1788 OF 7 CFR CHAPTER XVII, REA, WAS IN FORCE DURING THE REFORTING 'ERIOD AND RENEWALS HAVE BEEN OBTAINED FOR ALL POLICIES i 3-5-3 SIGNA} LF OFFICE MANAGER OR ACCOUNTANT CaTe x ; 3- §- 93 fy ~_S:GNATURE CF MANAGER Cate PART A. STATEMENT OF OPERATIONS YEARTODATE | THIS MONTH | ITEM [ USTYEAR [THIS YEAR] BUDGET fa) () fc) i ceratine Revenue and Patronace Cacital . sSipda2 7239 lis zaiz7 S29 €,497,576 } ower Precucticn Excense . (2,573,593 |. 2,815,015 2,283,927 | ost of Purchased Power.. 2,406,351 |iay73sS tansmissicn Exoense .... | 21.039 | 20,466 istribution Excense - Operaticn... 345,605 | 387,161 | 513,608 istribution Exoense - Maintenance. 537.729 | 520.377 417,167 onsumer Accounts Ex0eNse .......cecsceccessseesee Dail at | 3. ustomer Service and Informaticnal Excense 2° 220 | 2 ales Excense | “ninisrative and General Excense §17 871 ztai Oceration & Maintenance Exoense /2 thru 10) 7,002,834 eoreciation and Amortization Excense .. Fait (O75 ax Excense - Procerty & Gross Receipts ax Excense - Other .......... terest on Lona-Term Debt... teres: Charaed to Construction - Crecit. terest Excense - Other ... ther Decuctions ....... otal Cost of Electric Service (11 thru 18) .. atronace Capital & Overating Marains (J minus 19) ... on-Ccerating Margins - Interest .. llowance fer Funds Used Ourinc Conszuciien .. on-Ocerating Marcins - Cther ............-.-2--. eneraticn and Transmission Cacital Crecits . ther Cacital Crecits and Patronace Dividends ... xtraorcinary Items atronace Capital cr Marains (20 thru 26). 3 PART B. DATA ON TRANSMISSION AND DISTRIBUTION PLANT Ire YEAR-TO-OATE * Y' LAST ¥ EAR THIS YEAR ITEM ‘ew Services Connected | 104 74 | 5. Miles Transmission O 0 i , 6. Miles Distribution - simensieat | 0 5 Overhead 288.1 300.0 7. Miles Distribution - "ul Servicas in Place | 2975 3035 Underground 44.7 45.9 ule Services | |* Total Miles x i te: — Exclude Seasonal) (5+6+7) \Form7 (Rev. 12-92) Page 1 cf 7 Pages Alaska 18 Copper Valley FINANICAL AND STATISTICAL REPORT _ [Feaico esced REA USE CNLY TAUCTICNS - See REA EOM-2 1992 Audited PARTC. BALANCE SHEE 7 ASSSETS AND OTHER DESITS LIABILITIES ANO OTHER CREDITS Total Uslity Plant in Service .u..eecsccsssssesseeseeseeeee 27,044,254 27. Membershies ........ Constucion Work in Progress 127,900 28. Patcnage Cargital Total Utility Plant (J + 2) ........ 27,172,154 23. Operating Margins - Price Years ....... C Accum. Provision for Depraciaticn and Amort. 113.623.8793 30. Crerating Margins - Current Year Net Utility Plant (3 - 4) -.----ssas-scccccccssesrerseceeeen 15 848 278 31. Non Coerating Margins -........... Nen-utility Property - Net oe nna $2. Cther Margins and Equites .. Invest. In Assoc. Org. - Patronage Capital 252,847 33. Total Margins & Equities (27 strz J: Inves:. In Assoc. Org. - Cther - General Funds A %. Long-Term Debt - REA (Ne) Invesi. In Assoc. Org. - Cther - Nengeneral Funds 297759 (Payments-Unagplied $ Investments in Economic Develcoment Projects . im 25. Leng-Term Debt Cther - REA Guarantee: n Cther Investments a $6. Long-Term Debt Cther (Net) 11 875,812 Soecial Funds a 37. emm Debt Other - Exon. Devel. (Ne! c. Total Other Property and Investments (6 thru 12) . ean 917 3. g -Term Debt (34 thru 37) 11.675 815 Cash - General Funds .. gas 510 29. Notes Payable a Cash - Construction Funds - Trus: 4 40. Accounts Payable ... eas Special Deposits 41. Consumers Cegosits Temecrary Investments 42. Cther Currant and Accrued U 2 Notes Receivable - Net 42. Total Current & Accrued Li (39 thra 42 10114 396 £2, Deferred Crecits 2... nneceeseeeessnceeeeeeeeees Acssunis Receivable - Net Sales of Energy .. Accsunts Receivable - Net Cther Materials and Supplies - Efecsic and Other .. Miscellanecus Operating Reserves Total Liekilites and Cther Cre . (33 +33 +43 thru 35) 29,405,235 Bh I Precayments : Other Currentand Accrued Assets 438 327 ESTIMATED CONTRIBUTIONS iN AID CF CONSTRUCTION Total Current and Accrued Assats (I+ thru23).... __ 2 O49 910 Ealance Seginning of Year ........ 133.85¢ Deferred Debits: aseessscssssseesseseessnsesssensneeseesene 62802 Amcunt Received This Year (Net) (3,925) Total Assets and Other Debits (5+13+24+25) 20.406 .205 Total Consbutions in Aid of Censzucton .......... 12¢,.¢95+ PART D. NOTES TO FINANCIAL STATEMENTS 5 SPACE BELOW IS PROVIDED FOR IMPORTANT NOTES REGARDING THE FINANCIAL STATEMENT CONTAINED IN THIS REFORT. (DDITIONAL SPACE IS NEEDED, USE SEPARATE SHEET.) nbilled revenue (482,472) is not in Part C Line 19 5 in Part C Line 23. “a cr I+ u 4 ase 1 of 7 Certification - Insurance Fertion Annual audit of 1992 revealed nen-compliance of ce addressed in the Management Letter. Steps are current all-insurance requirements per Part 1788 cf 7 CFR Cha tA Form7 (Rev. 12-92) : Page 2 cf 7 Pages RUCTICNS - See REA EOM-2. | Peacu eves December 31, 1992 PART E CHANGES IN UTILITY PLANT BuG.tes en vee ee Beenie AOCITIOCNS RETIREMENTS Tie eNO On YEAR ITEM OF YEAR TRANSFERS (c) | (bi | (c} cs fe) 6 22 8G AGES (28) enn [Ran 2 53 2,620 | 2a3hWs Se inacures arc ‘mproverrens (J61) .--.. 71,683 63h | 81,314 1.3.6 tation Ezvement (362) 844,76 844,763 | 3.6 Ses, Towers, and Firtures (364)... |_ 4, 299 68] 342,500 47642, 182 323 warread, Conductors and Cevicas (45) 3,665,910 _ 36,077 lintel Y- Wd ony reergroure Canc (366) . 27 450 119 | APE Pol Aergrourc Conduccor & Cevicss (367} 2,78) 548 132,939 goa UII no Teaestotrors Gi 1995703 yao nia | 124,780) | 1,350,031 | a0 env (990) 409,695 32,896 442,59: | 3.3 leters (379) 278,180 62,43) (7,187) faze .aoa las ‘stalaticn on Consumers’ Premises (271) 100.875 | 439,442 I Bist... 37 vasad Prozarcy on Consumer's Premisas (372; : a ! iweet Us- (373) saaeceme a eee - | I waTOTAL -Cisrbution (1 anv /3) | 13,936,941 763,484 (31,967) 4,668,433 } AFF ANS Lard RIGS (239) mnnmnene teacures an improvements (390) —. 986,523 | 683,136 1,669,659 1 3.6 tice Future & Equiment (291) 339,007 100,133 | 439,140 | €.2 | tanscorazen Ecuipment (392) a 615,427 90,555 (17,53 623,472 |i9.2: teras, Toes, Shop, Garage, and sboratery Equioment (393, 294,395) 98,804 98.804 3 €.¢ ‘war - Coarated Equipment (254) -. [ i meruricaton Bquicmect (397) ann 116,379 | 23,819 | pe i * seedanecus Zquioment (398) -—___ 6,746 4,251 iter Tang-cie Procery (399) —._ LBTOTAL - General Pant (15 ww 23). | 2,162,886 901,904 (17,510) sangbies (301,202,303) 1,720 | and anc Land Rights, Reads and ‘rads (350, 189) —— Rrucures ang lmprovernents (352) | itation Zou ment (353) “wars anc Fixtures and Poles and | Ratures (254, 355) .. meee Dverreac Concucors & Cevices (356) | iseergreure Conduit (357) incergrcurc Conducors & Cevices (253) i SUBTOTAL - Transmission Plant... i 23 dew 32) Srocucson Plant - Steam (310-316) -—— | | *rocuction Plant - Nuctear (320 - 325) ?roduction Plant - Hycro (330 - 236)... [essen ESE | Production Plant - Cther (340-346). |_ 7, 889,133 172,216 M Cine Usity Pant (102, 104-106, 114, 118) 53,291 73,376 SUBTOTAL (/4-24025-J3-4 tru 38). | 24,543,971 3,110,980 (602,768) nonszucion Workin Progress (107) 72,654 55,246 | TOTAL UTUITY PLANT (39 + 0) | 24,616,625 3,156,226 (602,768) SA Form7 (Rev. 12-92) Pege 3 of 7 Pages STRUCTIONS - See REA EOM-2. | December 31, 123 PART F. ANALYSIS OF ACCUMULATED PROVISIONS FOR DEPRECIATION - TOTAL ELECTRIC PLANT DISTRIBUTION GENERAL PLANT TRANSMISSION OTHER PLANT ITEM PLANT PLANT S (a: (ej | (gi Balarce Secinning ct Year ' | 14,338,287 Acdiens - Cecreciaten Accruais C: | 2367522 a. Cecreciason Expense = =i b. Clearing Accounts and Others .. 0 | 120,33% | g c. Subtctal (a =). 452,463 LI9-352 236,528 Less - Flant Retirements: a. Plant Retired 31,967 20,932 Cc b. Removal Costs 0 0 o c. Subtetal (a +d) .. 31,967 20,932 c Plus Salvaged Materials : 392 | 11,490 | | a TOTAL (2c - 3c + 4) . 420,878 169,68:9 222 852 Crher Aciussments - Debit or Crecit 0. 32052 £ _ Balance End of Year (1 + 5 = 6) o.ccscecccseecssseseee 5,716,761 1,332,352 4,574,785 PART G. MATERIALS AND SUPPLIES = BALANCE BEGINNING] PURCHASZD SALVAGED USED :Nex SOLD ADJUSTMENT BALANCE TEM OF YEAR END OF YEAR (a) (3) fej (2 (ei p {21 Eleczic 370,171 11,662,638 | 6,942 (1,571,321)| (1,573) | 10,060 | 476,037 Cher (155 +156) | | | | | | Fato of Inventory Tunover - Electric 4. Inventsry - Electnc jas Percent ct Total Utility Flant lem i¢+2419.. 3.7 | = sare Pan = X 1CO= 1.8 PART H. SERVICE INTERRUPTIONS - AVERAGE HOURS 72 CONSUMER BY CAUSE j TOTAL TEM POWER SUPPLIER EXTREME STOBM . | | fe; {c} (ah Present Year 37 4.77 | | 74 Five-Year Averace| 35 176 | | ee PART I. EMPLOYEE-HOUR AND PAYROLL STATISTICS Number of Fuil Time Employees 3¢ 4, Payrcil - Excensed [1 2449 | Employee - Hours Worked - Regular Time 83,823 5. Fayroil-Cz | en £45 mployee - Hours Worked - Overtme | 7,187 | 6. Pavreil - Cre | 214,884 PART J. PATRONAGE CAPITAL PART K. DUE FROM CONSUMERS = THIS YEAR UMULATIVE FOR ELECTRIC SERVICE ITEM fei (35 1. General Fetrement 178,313 | 1,248,624 1. Amcur: Oue Over 60 Days 2. Soecial Retirements | 7,925 | 49,314 s 775 pentots Remements (112) 186238 _|_ 3,297,908 2, Amount Wrinen CH During Year 4, Paronace Capital Assigned : “| 6,941,490 5. Patronace Cacital Assianable ees heel 416 345 $10,213 PART L kWh PURCHASED AND TOTAL COST REA USE ONLY AVER EGE INCLUDED IN TOTAL CCST TEM ade kWh PURCHASED TOTAL CCST PER kWh FUEL COST (cents) AQJUSTMENT (or Creaizs) (a) (bi fei (d) (e) i) teh AK Energy Authority 37,599,228 2,406,351 064 | 0 | 0 _ | | | : | | | a — | | TOTALS | 37,599,228 2,406,351 1.064 | 0 | 0 REA Form7 (Rev. 12-92) Page 4 of 7 Poses n m ms =f “on ov 9 é < FINANCIAL AND STATISTICAL REPORT = escounceg STRUCTICNS - See REA E02. i December 31, 1 PART M. LONG-TERM LEASES (Uf addisional space is needed use sezcrate sheet.) iT BELOW ALL “RESTRICTED PROPETY™"" HELD UNDER “LONG-TERM” LEASE. (If none, sexe “NONE") NAME OF LESSOR | TYPE OF PROPERTY (a) N/a ! : (2) | | | 1 TOTAL RESTRICTED PROPERTY” macnt all properties Other AGA GulOMOOiEs, IPUCk?, t7aiekri, POCOSS. otner venicies (including without Lmiszon circrajt and snips), Office, zorzze and werehouse space and office equipment (including without limitation computert), “LONG-TERM” means leases having unexpired terms of more than 12 monshs (cn3 irso eccours terms of rental at option of the lessor, whether or not such leozes hove been renewed). PART N. ANNUAL ME=TING AND BOARD DATA | Date of Last Annual Meeting 2. Total Number cf Memters 3. Neneed ct Members Present at 4. Was Querum Present? Meeting aril 30, 1992 2,032 | 167 EK} yes O Neo Numcer of Members Voting by 6. Total Number of Scarc Members |7. Total Amcunt of Fees and Exzenses|&. Oces Manager Have Proxy cr Mail for Scard Members Contract? 698 8 $43,198 C yes RI Ne PART O. LONG-TERM DES3T - OTHER AND DEST SERVICE REQUIREMENTS . BALANCE BILLED THIS YEAR REA USE ese ENDOF YEAR | INTEREST PRINCIPAL TOTAL cNLY (a) (2) (c) (2) fei Natonal Rural Utlites Cocceraiive Finance Corporation | | Bank fer Cooperatives Fecerel Financing Bank Creer (List Separately) USDA-REA 11,675,812 $23,088 501,468 1,024,556 . TOTAL (Sum of 1 thru 7) 11,675,812 523,088 501,468 1,024,556 PART P. CONSERVATION DATA LAST YEAR THIS YEAR LAST YEAR THIS YEA ITEM ITEM (2) (8) (a) (3) _ Numter of Emclovees - Full Time 0 | o | +. Payroll | 0 | 0 * Number of Employees - Part Time 0 | 0 | 5. Cner Expenses | Q | 0 }. Total Employees - Hours 0 | QO | 6. Member Contact | o| | 0 a ha Se | ee aS | ae ee SS eS SSeS ESS ESS Ss REA Form7 (Rev. 12-92) Page 5 of 7 Feges ISTRUCTIONS - See REA EOM.-2. ! — PART R. POWER REQUIREMENTS DATA BASE CONSUMER tee TICATION Ae JANUARY FEBRUARY MARCH MAY JUNE REVENUE DATA (2) 3) ; (cj (e) @ No. Consumers Se~vac | 2,195 2,192 7a 2,206 | tescontal Saies lp. kWh Sod 1,499,530 ft 1,373,123 1,217.22 1 AOMO) SOG) IL) ies 2 ipsa io 266,148 | 224,656 205,€47 195,464 | 252,72: a Na. Consumers Servec Sesicantial Saies- [> Kwn sow | | Seasenal 5 c Revenue a. No. Consumers Sacved | trigaion Sales b. kWh Sold c Revenue | a No. Consumers Sarvec ’ 506 506 5Cé 504 il ae ens D. kWh Soid a.1981 95) 12,¢329,11¢ 3 374,874 2 £22 243 2 S72 55 ¢ Revenue | 495 913 463 ,E0€ 452,625 477,159 a No. Consumers Served al 1 1 l erm andine. [a awn Sod 25,880 53,240 TTaezO 239,920 | 3 Over 1000 AVA at = Til < Revenue 1Lé 9,084 12,006 27,451 a. No. Consumers Served 18 18 18 18 Pcie Street ard Ip, kWh Sold USAT 11,592 12,764 5,565 EE Te pecan 2.508 2,237 2,206 1.245 S & No. Consumers Served | 59 59 59 59 éo een 3. kWh Sod 105,478 07,170 115,635 82,31) S7 wciie Auth, Eames 17,573 16,¢70 17,419 14,762 2D a No. Consumers Served Sales for Resaes - b. kWh Sod REA Scrrowers [< Reverwe a No. Consumers Servec | Saies for Resaies- [Wn Sod Crer ¢ Revenue TCTAL No. Cansurrers (lines 1a - 9a) ce eS 27193 2,776 2,734 2,788 2,€23 TOTAL kWh Seid (fines 1b - So) : a 4,847,316 |4,466,420 |4,953,556 | 4,635,2i7 | 4,239,436 |4,C8C,i3¢ . TOTAL Revenue Received From Sales cf Erecirie Energy (lines te - Sc} 792,058 749,174 709,133 681,580 716,081 26 G3: tT ET TE ELE 440 515 631 310 €10 eas ‘ + Own U: z mare Wn - Cwn Used 18,728 17,633 23,736 15,343 i Qo 8.57 . TOTAL kWh Purcnased 2 7 506 2 59,373 2,152,810 633,622 62 e 4 7s bee \ TOTAL kWh Generated : a < 3 a 2,577,625 12,845,571 | 2,920,830 307 43132 PECL 370,692 | 398,480 398,797 372,286 434,578 | 339,932 l A Interchange - kWh - Net 2. P--* Sum All kW Input (Metered) eh camer VLG) Tuereeneaee 9,700 9,800 9,800 9,300 9,300 9,200 REA Form7 (Rev. 12-92) Page) Sicti7) coaes FINANCIAL AND STATISTICAL REPORT INSTAUCTICNS - See REA EOM-2. PART R. POWER REQUIREMENTS DATA BASE (Conzinuez (SEE PRECEDING PAGE 6 OF AEA FORM 7 FOR HEAOINGS OF LINE ITEM NUS! LINE | suty | aucus; | seetemsen | ocTosen | NoveMBER NUMBER | (3) (i “i (3 al 2,236 | 2270 | 2,266 | 2,296 ! [211,059,715 [2,079,826 |1, 1,222,568 |1,261,351 fel 200,556 | 202,016 | Img ni ziep sou ARirR es 2 | 2. o | ¢ | s | i 3. & | | © ! : 2 516 524 323 520 | S22 nile 4 [213,133,711 [3,097,532 |3,243,ScS [3,152,898 13,213,386 3, e | 504,600 499,904 4i9,3is | 478,852 498,362 | = a 1 ait qi pial ut 5. 2 229,280 125,360 233,449 | 69,042 40,486 407 ox c 27 3¢ a by AM of J} 27,645 11,176 s§ $5 | c wi-Wwi 164 S33 a 128 18 sa | 1a ia | 12 ce, & [es 3,950 5,169 7,253 2,398 11,20¢ i 12,551 163.52: GS 962 1,176 1,384 1.gaa | 2197 2,51 20 67% a 60 50 A) so | eo 41 fe on 70.638 67,767 £0,260 100,224 eo,204 | 139,995 11 noz ns- © 11,689 WAagy 17.18% 184828 17,243 / 18978 192 ¢22 a | i $3 B | i T & : a ! s. [fe | | | ! 6 | 10. = 2,831 2,872 2,86 2,862 2,889 i mis 4,497,294 |4,375,654 | 4,74¢,40 4,554,128 14,625,630 14,580,956 54,602,152 1 i 12. | 744,997 731,640 642,74 722,62¢ | 760,209 i 749,846 18,722,335 tS: 870 900 590 733 Loo | 505 eis i 7,381. 9,548 1 10,84 14,739 19,012 20 54 yee ns iS 5,529,967 |4,668,754 |4,396,13 2,604,159 |2,295,660 [2,265,118 87,599,222 Les (27,003) (16,038) (34,13 1,570,972 |2,862,268 |3,612,103 21,627,948 Hy Ue 615,935 450,288 386,97 378,114 | 483,492 552i,773 572420405 REA Form7 (Rev. 12-92) Pege 7 of 7 ecges son Your rezzonse is reauired (7 US.C. 901 et rea.) and is not corvicensic!. SCRAOWER CESIGNATICN This dota will be used by REA 20 review your finencici USDA-REA i wo 3 Cooser Val RCO ENCED Ruel In INVESTMENTS, LOAN GUARANTEES AND LOANS - DISTRISUTION December 31, 1S $2 ‘AUCTICNS - Reporting of Investments Is required by 7 CFA I717, Subpart N. invesment categories reported cn whis form corressend to Saianca Stas: som REA Form 7, PartC. Identity investments primarily fcr Rural Ceveiopment win “AD” in eslumn (e). Both “Inctuded™ and “Exc!uded™ Inves: a it Se reported. See EOM-2, Guide For Preparing Financial and Siatsical Repers, tr complete instructions. PAST I. INVESTMENTS (See instructions for definitions of Income or Loss) INVESTMENTS IN ASSCCIATED ORGANIZATICNS See attached continuation sheet a ” DESCRIPTION INCLUDED EXCLUDED INCOME OR LCSS | aD (S) (S) (S) i (a) (3) (si) e) We NON-UTILITY PROPERTY (NET) { | 23 lots - Alvine Estates ¢,C00 i { 2 | i | [ t. I ®. Totals $,000 t | | T t | ee ¢. = ! e. Totals i | INVESTMENTS IN ECONCMIC CEVELCPMENT PRCJECTS aye ie e. Torals OTHER INVESTMENTS | aig a. a | |e e. Tos SPECIAL FUNDS c. 4. e Totals CASH - GENERAL a Warkinge funds db NRA Anchorace BK — Checking &__ RA = Anchorace ay-Re epurchase Agree tent s. (FELMC) Hu e. Totals es¢ SPECIAL CEPOSITS LLL | | co Nn eo EA Form 7a (Rev. 12-92) INVESTMENTS, LOAN GUARANTEES AND LOANS - DISTRIBUTION alaska 18 Coover Vallis YEAR ENCED REA USE CNLY December 31, 1932 Ruéited . PART L INVESTMENTS (Continued) DESCRIPTION INCLUDED EXCLUCED INCOME OR LOSS | = 5 (3) (3) (3) 2 (a) (2) (si (2) fei . TEMPCRARY INVESTMENTS a NRUCFC - Commercial >. Pacer c. ¢. e. Totals . ACCCUNTS & NOTES RECEIVABLE - NET _3 Notes Receivable - Empolovee >. Miscellaneous Accounts Receivable o. Derojact Managenen+ Comnittes c. (ag for projec ouned by Stars £ e. Totals operated by cogverative) . CCMMITMENTS TO INVEST WITHIN +2 MONTHS BUT NOT ACTUALLY PURCHASED TOTAL CF INVESTMENTS (1 tyra 19) PART IL LOAN GUARANTEES 1,062,623 ORGANIZATION (c) I MATURITY DATE (b) ORIGINAL AMOUNT (S) (c: LOAN BALANCE (S) (2) es 3 t, TOTALS 5. TOTALS (inctuded Loan Guarantees only) PART III. RATIO RATIO CF INVESTMENTS AND LCAN GUARANTEES TO UTILITY PLANT (Total of Included Investmenss (Item I, 115) ond Loon Guarantees - Loan Balance (Item I, 5d) to Total Utitity Plant (Form 7, Part C, [em 3) PART IV. LOANS MATURITY ORIGINAL AMOUNT | LOAN BALANCE ORGANIZATION DATE (s) (s) RO (2) (8) (¢ (2) (e) 1. Employees, Ovficers, Directors | | | 4,884 | 2. Energy Rescurces Conservation Loans | I | | 3. | | | | ‘ | | | s | | | an ] | ] 7. TOTALS REA Form 7a (Rev. 12-92) Page 2 mA Paces INVESTMENTS , LOAN GUARANTEES : AND LOANS CONTINUATION SHEET alaska 18 Cosser Vallev YEAA ENCED DECEMBER 31,19 ¢ ite rey 2. INVESTMENTS, LOAN GUARANTEES AND LOANS. "AUCTIONS - Reporting of Investments Is required by 7 CFR ITI7, Subcart N. Idencly investemenss primarily for Rural Cevelocment with “AC™ in cziu mu REA USE CNLY INCLUDED EXCLUCED INCOME OR LOSS DESCRIPTION Ro z (3) (3) (3) Ee (a) (d) (c} (2) (e; 2 sniesstenss in Bssoc. Orc. ml | alaveca In Exchange — Datronace Can 463,595 79,225, | nlaveea iene | 5 cat Lclwenerc Capital Term Certificates 372.359 Cc L aluerncre Memherchin _ 1,000 £ cl Ruralite_=_Patronece. Capital ___ 267 pd Imossic 464 927 972.354 70,921 | ro | | fecal eel nce ae aaeabeel cent nm AForm7a &12h_ = (Rey, 12-92) CONTINUATION SHEET Pege_3___ of COPPER VALLEY ELECTRIC ASSOCIATION, INC. FINANCIAL STATEMENTS AND SUPPLEMENTARY FINANCIAL REPORTS AND ADDITIONAL INFORMATION FOR THE YEARS ENDED DECEMBER 31, 1991 AND 1990 AND INDEPENDENT AUDITORS' REPORT COPPER VALLEY ELECTRIC ASSOCIATION, INC. TABLE OF CONTENTS INDEPENDENT AUDITORS' REPORT ON FINANCIAL STATEMENTS FINANCIAL STATEMENTS FOR THE YEARS ENDED DECEMBER 31, 1991 AND 1990: Balance sheets Statements of operations Statements of equities Statements of cash flows Notes to financial statements SUPPLEMENTARY FINANCIAL REPORTS FOR THE YEAR ENDED DECEMBER 31, 1991: Independent auditors’ report on compliance Independent auditors’ report on the internal control structure Appendix ADDITIONAL INFORMATION FOR THE YEAR ENDED DECEMBER 31, 1991: Schedule of operations and patronage capital by district-1991 Schedule of operations and patronage capital by district-1990 YN Un F&F W WY 15 16 18 19 20 Deloitte & Touche IN Suite 1500 Facsimile: (907) 264-318: la 550 West 7th Avenue ; Anchorage, Alaska 99501 Teleohone: (907) 272-8462 INDEPENDENT AUDITORS' REPORT Board of Directors Copper Valley Electric Association, Inc. Glennallen, Alaska We have audited the balance sheets of Copper Valley Electric Association, Inc. as of December 31, 1991 and 1990, and the related statements of operations, equities, and cash flows for the years then ended. These financial statements are the responsibility of the Association's management. Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the financial statements referred to above present fairly, in all material Tespects, the financial position of Copper Valley Electric Association, Inc., as of December 31, 1991 and 1990, and the results of its operations and its cash flows for the year then ended, in conformity with generally accepted accounting principles. Our audit was conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The additional information on pages 14 and 15 is presented for the purpose of additional analysis of the financial statements, rather than to present the results of operations and patronage capital of the Copper Basin and Valdez districts, and is not a required part of the basic financial statements. This additional information is the responsibility of the Association's management. Such information has been subjected to the auditing procedures applied in our audits of the basic financial statements and, in our opinion, is fairly stated in all material respects when considered in relation to the basic financial statements taken as a whole. abo, # Toc February 28, 1992 COPPER VALLEY ELECTRIC ASSOCIATIO BALANCE SHEETS DECEMBER 31, 1991 AND 1990 N, INC. ASSETS UTILITY PLANT: Plant in service, at cost ce at Construction work in progress Less accumulated provision for depreciation and amortization NONCURRENT ASSETS: Investments in associated organizations Nonutility property CURRENT ASSETS: Cash and cash equivalents - Cash - general Cash - restricted Temporary investments Cash - loan funds Accounts receivable, less allowance for doubtful accounts of $49,500 in 1991 and $58,000 in 1990 Accrued utility revenues “wy 0 Due from the Project Management Committee and Alaska Energy Authority Materials and supplies Prepaid expenses Other current assets Total current assets DEFERRED CHARGES TOTAL See notes to financial statements. 1991 1990 $24,543,971 $23,868,069 72,654 32,342 24,616,625 23,900,411 (10,793,531) (10,082,448) 13,823,094 13,817,963 757,991 722,696 ____9.000 ___ 9.000 766,991 731,696 118,397 105,119 76,340 71,780 4,130,119 3,943,129 2 1 703,415 711,299 480,859 495,248 107,704 174,102 370,171 341,428 29,399 37,474 PERE 2681.37 8.015 6,042,593 5,887,595 557 20,352 $20,633,235 $20,457,606 EQUITIES AND LIABILITIES EQUITIES: Memberships Patronage capital Donated capital Total equities LONG-TERM DEBT: Rural Electric Association mortgage notes, less current maturities Obligations under capital leases, less current maturities Total long-term debt CURRENT LIABILITIES: Accounts payable Due to the Project Management Committee Cost of power adjustment Consumer deposits Taxes accrued Other current and accrued liabilities Current portion of long-term debt and capital leases Total current liabilities CONTRIBUTIONS IN AID OF CONSTRUCTION DEFERRED CREDITS CONTINGENCIES (NOTE M) TOTAL 1991 $ 10,520 7,127,728 2,985 7,141,233 11,675,552 11,675,552 289,283 200,850 27,588 221,740 26,506 397,665 511,000 1,674,632 133,889 7,929 $20.633.235 1990 $ 10,235 6,514,973 2,985 6,528,193 12,177,451 9.283 12,186,734 163,077 258,581 146,630 204,941 26,462 351,532 505,000 1,656,223 75,389 11,067 $20,457,606 COPPER VALLEY ELECTRIC ASSOCIATION, INC. STATEMENTS OF OPERATIONS YEAR ENDED DECEMBER 31, 1991 AND 1990 OPERATING REVENUES OPERATING EXPENSES: Power production Purchased power Administrative and general Depreciation and amortization Distribution - maintenance Distribution - operations Consumer accounts Customer service and information expense Taxes Other deductions Total operating expenses INTEREST EXPENSE Net operating margins NONOPERATING MARGINS: Patronage capital from associated organizations Interest income NET MARGINS See notes to financial statements. 1991 $8,772,239 2,573,593 2,415,366 817,871 711,976 537,729 358,130 271,100 29,220 26,506 42.297 7,783,788 543,639 444,812 39,750 277,090 $761,652 1990 $8,304,169 2,011,379 2,822,681 966,986 694,256 509,596 263,320 267,337 30,019 26,462 9,092 7,601,128 562,608 140,433 31,196 398.014 $__ 595.643 COPPER VALLEY ELECTRIC ASSOCIATION, INC. STATEMENTS OF EQUITIES YEAR ENDED DECEMBER 31, 1991 AND 1990 Patronage = Patronage capital capital Donated Memberships _assigned unassigned capital Total BALANCE, January 1, 1990 $9,615 $5,188,200 $1,400,421 $2,985 $6,601,221 New memberships, net of cancellations 620 620 Patronage capital assigned 1,400,421 (1,400,421) Retirement of capital credits (669,291) (669,291) Net margin 595,643 595,643 BALANCE, December 31, 1990 10,235 = 5,919,330 595,643 2,985 6,528,193 New memberships, net of cancellations 285 285 Patronage capital assigned 595,643 (595,643) Retirement of capital credits (148,897) (148,897) Net margin AGI“GS 2, | | | WL 761,652 BALANCE, December 31, 1991 $10.520 $6,366,076 $ 761,652 $2,985 $7.141.233 See notes to financial statements. 4 COPPER VALLEY ELECTRIC ASSOCIATION, INC. STATEMENTS OF CASH FLOWS YEAR ENDED DECEMBER 31, 1991 AND 1990 OPERATING ACTIVITIES: Net margins Adjustments to reconcile net margins to net cash provided by operating activities: Depreciation and amortization Capital credits from associated organizations Write off of CFC Integrity Fund Bad debt expense Recovery of bad debts Changes in assets and liabilities which provided (used) cash: Accounts receivable Accrued utility revenues Due from the Project Management Committee and AEA Materials and supplies Prepaid expenses Other current assets Deferred charges Accounts payable Due to the Project Management Committee Cost of power adjustment Taxes accrued Other current and accrued liabilities Deferred credits Net cash provided by operating activities INVESTING ACTIVITIES: Additions to plant Proceeds from sale of plant Net cash used in investing activities Balance carried forward See notes to financial statements. 1991 $ 761,652 836,055 (35,297) 9,969 (18,469) 16,384 14,389 66,398 (28,743) 8,075 (18,172) 19,795 126,206 (57,731) (119,042) .) 44 33,262 __(3,138) 1,611,637 (854,264) 13.079 (841,185) 710,452 1990 $ 595,643 820,957 (53,093) 3,056 23,609 (28,917) (143,699) (26,115) 43,786 15,740 (11,317) (3,655) 8,317 (146,921) (131,543) 111,257 545 33,971 11,067 1,122,688 (711,254) 3,631 707,62 415,065 COPPER VALLEY ELECTRIC ASSOCIATION, INC. STATEMENTS OF CASH FLOWS (continued) YEARS ENDED DECEMBER 31, 1991 AND 1990 Balance brought forward FINANCING ACTIVITIES: Repayments of long-term debt Payments to retire patronage capital credits Deposits received Deposits refunded Principal payments under capital lease obligation Receipt of contributions in aid of construction Proceeds from memberships Payments to refund memberships Release of loan funds Net cash used in financing activities INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS: Beginning of year End of year SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION: Cash paid for interest during the year See notes to financial statements. 1991 $ 770,452 (496,222) (136,025) 98,028 (81,229) (8,960) 58,500 2,365 (2,080) (1) (565,624) 204,828 4,120,028 $4,324.856 $_ 543,639 1990 $ 415,065 (478,536) (543,072) 88,773 (86,963) (8,053) 14,546 2,185 (1,565) 1.149 (1,011,536) (596,471) 4,716,499 $4,120,028 $563,523 COPPER VALLEY ELECTRIC ASSOCIATION, INC. NOTES TO FINANCIAL STATEMENTS : YEARS ENDED DECEMBER 31, 1991 AND 1990 NOTE A: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Accounting records: The accounting records of Copper Valley Electric Association, Inc. (Association) conform to the Uniform System of Accounts prescribed by the Federal Energy Regulatory Commission as Modified for Electric Borrowers of the Rural Electrification Administration (REA). The Association is subject to the regulatory authority of the Alaska Public Utilities Commission (APUC) as to rates and various other matters. The Association maintains separate accounting records for the Copper Basin and Valdez districts for determining assignment of patronage capital and for rate making purposes. Plant additions and retirements: Additions and replacements of plant in service are recorded at the original cost of contracted services, direct labor and materials, and indirect overhead charges. Except for certain specifically identifiable units of property, replacements and retirements of plant are charged to the accumulated provision for depreciation at the average unit cost of the property unit, plus removal cost, less salvage. The cost of replacement is added to the plant in service. Interest during construction: The Association capitalizes interest on short-term borrowings used to finance construction. Interest is allocated to major construction projects. During 1991 and 1990, the Association had no short-term borrowings which would result in capitalization of interest. Depreciation and amortization: Depreciation and amortization rates are applied on a straight-line basis and at December 31, 1991 are as follows: Rate Production plant 3% Distribution plant 2.7%-4.2% General plant: Structures and improvements 3% Office furniture 6%-16% Transportation equipment 10%-25% Power operated equipment 6% Communications equipment 6% Other general plant 6% Depreciation of completed construction not classified has been included in functional plant depreciation accounts in accordance with the anticipated eventual classification to production or distribution plant. Contributions in aid of construction: Contributions in aid of construction are credited to the associated cost of construction of property units when completed. Cash and Cash equivalents: For purposes of the statement of cash flows, the Association considers all highly liquid instruments with a maturity of three months or: less when purchased to be cash equivalents. Materials and supplies: Materials and supplies are stated at weighted average cost. Fuel inventory is recorded under the first in-first out method. Patronage capital: Patronage capital consists of undistributed net margins accumulated since inception. The distribution of such patronage capital to members of the Association is restricted under covenants of REA mortgage notes. The Board of Directors has established a twenty year patronage rotation policy. Donated capital: Donated capital consists of amounts received by the Association from escheatment of membership fees. Operating revenues: Operating revenues are based on billing rates authorized by the APUC which are applied to the customer's usage of electricity. The Association records unbilled revenues at the end of the accounting periods. Unbilled revenue is presented on the balance sheets as accrued utility revenues. Cost of power adjustment: Cost of power adjustment provides for current collection of estimated amounts of fuel and purchased power costs, from that collected in the base rate for electricity, with subsequent settlement of actual costs and amounts collected. Accumulated balances or credits relating to the cost of power adjustment flow through to the consumers on a quarterly basis. Nonoperating margin: Nonoperating margin is an accumulation of all nonoperating margins reduced by nonoperating losses and operating losses as required by REA regulations. If a positive balance exists at year-end, it is transferred to patronage capital unassigned. Income taxes: The Association is exempt from federal and state income taxes under the provisions of Section 501(c)(12) of the Internal Revenue Code. Collective bargaining agreement: Employment terms and conditions for outside plant personnel are covered under a collective bargaining agreement between the Association and Local 1547 of the International Brotherhood of Electrical Workers. The current agreement which covers a three year period, expires December 31, 1992. Interest on customer deposits: In accordance with Alaska law the Association pays interest on customer deposits for single eters in excess of $100. Interest is accrued at the prevailing rate received by the Association on such funds and is paid upon deposit refund. Reclassifications: Certain amounts reported in fiscal year 1990 have been reclassified to conform to 1991 presentation. NOTE B: UTILITY PLANT Major classes of the Association's utility plant are as follows: December 31 1991 1990 Production plant $ 7,889,134 $ 7,868,798 Distribution plant 13,936,940 13,352,339 General plant 2,121,887 2,092,915 General plant - leased property under capital leases 40,999 40,999 Completed construction not classified 553,291 511,298 Intangible plant 1,720 1,720 Plant in service 24,543,971 23,868,069 Construction work in progress 72,654 32,342 $24,616,625 $23.900.411 A summary of the provision for depreciation and amortization follows: December 31 1991 1990 Depreciation and amortization expense $711,976 $694,256 Depreciation and amortization charged to operating expense or construction accounts 124,079 126,701 $836,055 $820.957 NOTE C: INVESTMENTS IN AND TRANSACTIONS WITH ASSOCIATED ORGANIZATIONS A summary of investments in associated organizations consists of the following: December 31, 1991 1990 National Rural Utilities Cooperative Finance Corporation (NRUCFC): Capital term certificates $372,350 $372,350 Membership 1,000 1,000 Alaska Rural Electric Cooperative Association (ARECA) Insurance Exchange 384,374 349,079 Ruralite - patronage capital credits 267 267 $757,991 $722,696 9 The Association purchased insurance coverage during the years ended December 31, 1991 and 1990 from ARECA Insurance Exchange in the amount of $256,019 and $299,949, respectively. NOTE D: RESTRICTED CASH AND CASH EQUIVALENTS Cash and cash equivalents includes $76,340 and $71,780 at December 31, 1991 and 1990, respectively, of grant funds from the State of Alaska restricted for use in construction. NOTE E: DEFERRED CHARGES Deferred charges consist of the following: December 31, 1991 1990 Work plan $557 $12,268 Least cost plan 12,801 Inventory adjustment (4,747) Other 30 $557 $20,352 The 1990 inventory adjustment was amortized over a twelve month period. Other deferred charges are amortized over a two to five year period. NOTE F: LONG-TERM DEBT Long-term debt to REA consists of 2% and 5% mortgage notes payable as follows: December 31, 1991 1990 2% mortgage notes payable $ 1,580,479 $ 1,762,364 5% mortgage notes payable 10,596,801 _10,911,137 12,177,280 12,673,501 Less current maturities 501,728 496.050 $11,675,552 $12,177,451 The notes are each for 35 year periods and all assets are pledged as security. The notes are scheduled to be fully repaid at various dates from 1992 to 2020. The Association incurred interest expense on REA mortgage notes of $541,336 in 1991 and $559,021 in 1990. 10 Future minimum lease payments under office equipment capital leases together with the present value of the net minimum lease payments at December 31, 1991 are as follows: Amount Year = December 31, 1992 $9,272 Less amount representing salvage value 2,319 Less amount representing interest __ 695 Present value of net minimum payments 6,258 Remaining lease payments of $9,272 are reflected in the balance sheet as current portion of long-term debt. Amortization of leased property under capital leases has been included in depreciation expense. Total long-term debt at December 31, 1991 matures as follows: Year ending December 31, Amount 1992 $ 511,000 1993 499,000 1994 514,000 1995 534,000 1996 555,000 Thereafter 9,573,552 $12,186,552 NOTE G: UNADVANCED LOAN FUNDS The Association has entered into a line of credit agreement with NRUCFC for a maximum of $1,000,000. The entire amount was available during 1991 and 1990 except for $153,752 which has been reserved as additional insurance reserves, if necessary, to the ARECA Insurance Exchange. Pursuant to a deposit premium agreement, funds are to be available for ARECA's use upon demand through 1993. NOTE H: DEFERRED CREDITS Deferred credits includes plant installed for temporary use. Temporary facilities are recorded at cost, net of any payments received from customers. December 31 1991 1990 Temporary facilities $7,929 $11,067 11 NOTE I: RETURN OF CAPITAL Under provisions of the long-term debt agreement, until total equities and margins equal or exceed 40% of the total assets of the Association, the return to patrons of capital contributed by them is limited to 25% of the net margins received by the Association in the next preceding year. In 1990, the Board requested and obtained REA and APUC approval to return patronage capital for the years 1973 to 1981. Total patronage capital credits of $669,291 or 48% of 1989 net margin, were refunded in December 1990 and reflected as a reduction of patronage capital in 1990. The Board authorized the retirement of 22% if 1982 patronage capital in 1991. The retirement which totaled $148,897 is reflected as a reduction of patronage capital in 1991. NOTE J: PENSIONS Pension benefits are provided for substantially all employees through the International Brotherhood of Electrical Workers (IBEW) for union employees and the National Rural Electrical Cooperative Association (NRECA) for nonunion employees. Total pension costs for union employees were $134,283 in 1991 and $132,643 in 1990. The plans are master multiple employer plans in which the accumulated benefits and plan assets are not determined or allocated to an individual employer. The Association funds pension costs at rates as determined by NRECA and the collective bargaining agreement with IBEW. In August 1987, NRECA declared a moratorium on contributions to the pension plan to avoid over-funding of the plan. No contributions were made for the period January 1, 1990 through December 31, 1991 for non-union employees. The Association participates in a 401(K) plan for all full time employees. The Association contributes 1% of employee wages to the plan. Contributions for the year ended December 31, 1991 and 1990 were $16,977 and $15,224, respectively. NOTE K: PURCHASE COMMITMENTS On October 28, 1985, the Association entered into a 45 year agreement with four other utilities and the Alaska Energy Authority (AEA) to purchase wholesale power from four State of Alaska hydroelectric projects. The agreement includes the Solomon Gulch hydroelectric project in Valdez and is collectively known as the Four Dam Pool (Project). In addition, the Association entered into a separate agreement with the AEA to operate and maintain the Solomon Gulch project on behalf of the State of Alaska. The Project Management Committee (PMC), created by the agreement, consists of a representative from the AEA and each of the four purchasing utilities. The PMC is responsible for administering the purchase agreement and annually determining the wholesale power rate. 12 The five purchasing utilities collectively bear the pooled cost of operating and maintaining the Project. This is achieved through the purchase of power from the PMC at the established wholesale power rate, which is the sum of the following two components: 1. Power production cost component - Power production costs used in determining this component include operating costs of the facilities, joint insurance costs, specific administrative and general costs of the AEA, cost of the PMC, and an annual fixed contribution to a renewal and replacement fund for Project facilities. 2. Debt service component - This component is based on contracted forecast sales determined at the inception of the agreement and is subject to revision at fifteen year intervals after the effective date of the agreement. The agreements provide for monthly payment for purchase power and collection of Operating and Maintenance (O & M) costs due the Association. As provided by the agreements, O & M costs are offset against purchased power costs with the balance remitted to the PMC monthly. A summary of the purchased power and O & M costs during 1991 and 1990 follows: 1991 1990 Power purchased from PMC $2,415,366 $2,822,681 O & M costs collected from purchased ; power payments 731,863 804.409 Net payments to PMC $1,683,503 $2.018.272 The wholesale power rate in effect during 1991 and 1990 was 6.4 cents per kilowatt hour. Throughout each contract year, the PMC analyses whether funds collected from the purchasing utilities for power sales are sufficient to cover the pooled costs of the Project. The resultant wholesale cost of power adjustment (true-up) flows through to the wholesale power rate charged in the subsequent contract year. The Association's share of the underpayment or overrecovery will be collected through subsequent modifications of the wholesale power rate. NOTE L: REGULATORY MATTERS A cost of power adjustment tariff provides for the flow through to consumers of changes in purchased power and diesel fuel costs. The tariff provides for quarterly true-up of estimated kilowatt hour sales, purchased power and diesel fuel costs to actual sales and costs. The Association's Board of Directors requested and obtained approval from the Alaska Public Utilities Commission to absorb fuel price increases in 1990 totaling $345,028 and accordingly, that amount was not recovered from customers through the cost of power adjustment. In April 1990, the Association was cited by the Environmental Protection Agency (EPA) for recordkeeping violations associated with polychlorinated biphenyls (PCB). The EPA and the Association reached a settlement agreement in June 1990. All items agreed to in the settlement agreement were resolved as of July 31, 1990. 13 Subsequent to resolution of the citation, the Association has undertaken an extensive program to test and dispose of PCB contaminated equipment. Included in Distribution-Operation expense are costs associated with the PCB program of $173,161 and $166,078 for 1991 and 1990, respectively. NOTE M: LITIGATION SETTLEMENT In 1990, the Association and the Alaska Energy Authority (AEA) settled a dispute related to alleged flooding of an access road to a mining claim as a result of the construction of the ae Gulch Hydroelectric Project. The $500,000 settlement was split equally between the Association and the AEA. Recorded in 1990 administrative and general expenses are approximately $301,000 in settlement and related expenses. NOTE N: CONTINGENCIES The Association is responsible for contaminated soil cleanup costs associated with underground fuel tanks. Costs included in distribution-maintenance for clean up activities are $37,053 and $26,602 in 1991 and 1990, respectively. The total cost of this cleanup cannot be reasonably estimated, however, could be significant. No provision for future costs associated with the cleanup are included in current year operations. NOTE O: RESTATEMENTS The Company has restated the 1990 balance sheet to allow comparative presentation of deferred debits and deferred credits. These amounts were previously consolidated into the deferred charges line item on the balance sheet as follows. Deferred charges as previously presented December 31, 1990 $ 9,285 Amount presented as deferred credits in current year report for December 31, 1990 . 11,067 Deferred charges as restated $20,352 14 Deloitte & Touche Suite 1500 Facsimile. (907) 264-3181 JN 550 West 7th Avenue Anchorage, Alaska 99501 Teleohone: (907) 272-8462 INDEPENDENT AUDITORS' REPORT ON COMPLIANCE Board of Directors Copper Valley Electric Association, Inc. Glennallen, Alaska We have audited the financial statements of Copper Valley Electric Association, Inc. as of and for the year ended December 31, 1991, and have issued our report thereon dated February 28 1992. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States and the State of Alaska Single Audit Regulation (1 AAC 45.010). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the Association is the responsibility of the Association's management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we performed tests of the Association's compliance with certain provisions of laws, regulations, contracts, and grants. However, our objective was not to provide an opinion on overall compliance with such provision. The results of our tests indicate that, with respect to the items tested, Copper Valley Electric Association, Inc. complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the Association had not complied in all y naterial Tespects, with those provisions. This report is intended for the information of the Board of Directors, management, the Rural Electrification Administration and supplemental lenders. This restriction is not intended to limit the distribution of this report, which is a matter of public record. Lbult ¢ Truebe February 28, 1992 15 Deloitte & Touche JN Sune 1500 Facsimiie: (907) 264-3181 : 550 West 7th Avenue Arerorage, Alaska 99501 Teleohone: (907) 272-8462 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE Board of Directors Copper Valley Electric Association, Inc. Glennallen, Alaska We have audited the financial statements of Copper Valley Electric Association, Inc. as of and for the year ended December 31, 1991, and have issued our report thereon dated February 28, 1992. We conducted our audit in accordance with generally accepted auditing standards, Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. In planning and performing our audit of the financial statements of the Association for the year ended December 31, 1991, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the financial statements and not to provide assurance on the internal control structure. The management of the Association is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures 1 may deteriorate. For the purpose of this report, we have classified the significant internal control structure policies and procedures in the following categories: Cycles of activity Revenue/receipts Purchases/disbursements Payroll Work orders 16 For all of the internal control structure categories listed above, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk. Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A description of the responsibility of management for establishing and maintaining the internal control structure, and of the objectives of and inherent limitations in such a structure, is set forth in the attached Appendix, and should be read in conjunction with this report. A material weakness is a reportable condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operation that we consider to be material weaknesses as defined above. However, we noted certain matters involving the internal control structure and its operation that we have reported to the management of the Association in a separate letter dated February 28, 1992. This report is intended for the information of the Association and management within the Association, officials of Rural Electrification Administration and supplemental lenders. This restriction is not intended to limit the distribution of this report, which is a matter public record. Deloidli f Treats February 28, 1992 17 Deloitte & Touche JN Surte 1500 Facsimile: (907) 264-3181 ly 550 West 7th Avenue Arcnorage, Alaska 99501 Teieonone: (907) 272-8462 INDEPENDENT AUDITORS' REPORT ON THE INTERNAL CONTROL STRUCTURE - APPENDIX MANAGEMENT'S RESPONSIBILITY FOR, AND THE OBJECTIVES AND LIMITATIONS OF, THE INTERNAL CONTROL STRUCTURE The following comments concerning management's responsibility for the internal control structure and the objectives of and the inherent limitations in the internal control structure are adapted from the Statements on Auditing Standards of the American Institute of Certified Public Accountants. Management's responsibility: _ Management is responsible for establishing and maintaining the internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control policies and procedures. Objectives: The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use of disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of financial statements in accordance with generally accepted accounting principles and Rural Electrification Administration Uniform System of Accountants. Limitations: Because of inherent limitations in any internal control structure, errors or irregularities may occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. 18 COPPER VALLEY ELECTRIC ASSOCIATION, INC. SCHEDULE OF OPERATIONS AND PATRONAGE CAPITAL BY DISTRICT YEAR ENDED DECEMBER 31, 1991 Copper Basin Valdez Total OPERATING REVENUES $3,235,014 $5,537,225 $8,772,239 OPERATING EXPENSES: Power production 855,540 1,718,053 2,573,593 Purchased power 802,940 1,612,426 2,415,366 Administrative and general 310,417 507,454 817,871 Depreciation and amortization 357,056 354,920 711,976 Distribution - maintenance 330,755 206,974 537,729 Distribution - operations 148,834 209,296 358,130 Consumer accounts 101,662 169,438 271,100 Customer service and information expense 9,711 19,509 29,220 Taxes 8,811 17,695 26,506 Other deductions 7,841 34,456 42,297 Total operating expenses 2,933,567 4,850,221 7,783,788 INTEREST EXPENSE 320,177 223.462 543,639 Net operating margins (18,730) 463,542 444 812 NONOPERATING MARGINS: Patronage capital from associated organizations 13,913 25,837 39,750 Interest income __ 102,445 174,645 277,090 Net margins 97,628 664,024 761,652 PATRONAGE CAPITAL: , Beginning of year 2,737,014 3,777,959 6,514,973 Less retirement of patronage, capital credits 54,839 94,058 148,897 End of year $2,779,803 $4,347,925 $7,127,728 19 COPPER VALLEY ELECTRIC ASSOCIATION, INC. SCHEDULE OF OPERATIONS AND PATRONAGE CAPITAL BY DISTRICT YEAR ENDED DECEMBER 31, 1990 OPERATING REVENUES OPERATING EXPENSES: Power production Purchased power Administrative and general Depreciation and amortization Distribution - maintenance Distribution - operations Consumer accounts Customer service and information expense Taxes Other deductions Total operating expenses INTEREST ON LONG-TERM DEBT Net operating margins NONOPERATING MARGINS: Patronage capital from associated organizations Interest income Net margins PATRONAGE CAPITAL: Beginning of year Less retirement of patronage, capital credits End of year Copper Basin $3,123,539 686,192 962,972 320,382 358,273 360,428 104,415 79,765 10,851 9,028 4,232 2,896,538 331,144 (104,143) 19,513 147,126 62,496 2,960,358 285,840 $2,737,014 Valdez $5,180,630 1,325,187 1,859,709 646,604 335,983 149,168 158,905 187,572 19,168 17,434 __ 4,860 4,704,590 231,464 244,576 37,683 250,888 533,147 3,628,263 383,451 $3,777,959 Total $8,304,169 2,011,379 2,822,681 966,986 694,256 509,596 263,320 267,337 30,019 26,462 9.092 7,601,128 562,608 140,433 57,196 398.014 595,643 6,588,621 669,291 $6,514,973 20 musntaining the data ceeded, and completing and zeviewing un collection of informmaucn. sare wraues suggestions for reducing this burden, 1 Deparement of Agnculuire, Cearince CfScex, ORM, Room ———— = AOL 'W, Waszegion, DC 2028 Reduction Proec: (OMB 0572-0032), Washangion, DC 20503. OMB FORM NO. 0572-0032, Expires 392 Thur data will be used by REA to review your financial neuaaon. Your response us required /7 US.C. 901 tsea.) and u not conidenial. — and to the Office of Management and 3udget, Prserwort USOA-REA BORROWER CESIGNATICN Alaska 12 Canrer Yalla: BORROWER NAME ANO ACORESS re] Ceoper Valiey Electric FINANCIAL AND STATISTICAL REPORT P. 0. Box 45 AX 99538 INSTRUCTIONS — Sudmit an original and four copies to REA. Round ail YEAR ENCING 5 REA USE CNLY amounts to nearest dollar, See REA EOM-2. December 31, 1991 Audited | CERTIFICATION We hereby certify that the entries in this report are in acccrdance with the accounts and other records of the system and reflect the status of the system to the best of our knowledze and belief. ALL INSURANCE REQUIRED BY PART 1788 OF 7 CFR CHAPTER XVII, REA, WAS IN FORCE OURING THE REPORTING PERIOD AND RENEWALS HAVE BEEN OBTAINED FOR ALL POLICIES. leotirtrw Lhe--——~ SIGNATURE OF OFFICE MANAGER OR ACCOUNTANT 4/1 [@e OATE - ae = (FOL LL bet — [1 /F mH “7 SIGNATURE OF MANAGER DATE PART A. STATEMENT OF OPERATIONS YEAR-TO-DATE ITEM — AALOSOARE THIS MONTH LAST YEAR | THIS YEAR BUOGET fa) ie) fe) Operating Revenue anc Patronage Capital . ns 8,304,359 | 8. 7722939 | 8.058.845 2. Power Proguction Exoense . s 2 2,011,379 | 2.872,592 | 2,420 ano 3. Cost of Purchased Power. - - »« | 2,922,883 | 3.415 344 2,241 522 | 4. Transmission Expense . . _ . 14, E636 | 12 624 | 1s O28 5. Distribution Expense - Operation. . . . 242 £27 | 225 605 234 029 6. Distribution Expense - Maintenance . ° 50a. so8 | §37,729 | 844,948 Consumer Accounts Expense 287 33-7 | 271,100 342 434 8. Customer Service ana Informational Exoense 30.020 | 20,920 15.422 | 9. Sales Expense . . . . . . . Te | a2 | 2.100 | 10. Aaministrative and General Expense ee ocg,oge 237,871 7a5 300 | £7977 11. Totai Operation & Maintenance Excense (2 tnrul0) . | 4,872 405 | 7902 924 |= 342 427 zs se- | 22. Depreciation ana Amortization Expense G94 955 | 11 ave | 409 52909 | 2.097 13. Tax Exoense - Procerty : : . az 26467 | 26 506 24 000 2 9304 14. Tax Expense - Otner . . . ie 4 | a as a fa) 15. Interest on Long-Term Cedt. =. Eee 959.021" | $41 324 S41 644 AA 19% 16. Interest Cnargec to Construction -Crecit . . Q rie A vu a vit in } 17. Interest Expense - Otner Ses : 2,517 7204 in nana sac 23, Other Cecuctions. 9. ; . a.enn | 22 673 | oI 19. Total Cost of Electric Service (11 tnru 18) . 3 (BAW Ry AR ele Nop eat ens 142 20. Patronage Capital & Operating Margins (1 minus 19) . 240,422 | 41 sca | \ 21. Non Overating Margins - Interest. — 292,149 | 227 176 | 229 AAA | | 22. Allowance for Funds Used Ouring Construction . a a a a 23. Non Operating Margins -Otner . . . . te es72 1A O1A | 3A a 4a 33% 24. Generation and Transmission Capital Creaits emetic a | a a a 25. Otner Capital Crecits and Patronage Oivicends . . 67 104 2c 3754 27 70: a 26. Extraordinary Items. . . . . - A A 4 eS - Patronace Capital or Margins (20 thru 26) 595 642 FEI 6892 ana 270 r1ae wes) AND DISTRIBUTION PLANT YEAR-T THIS YEAR ITEM LAST YEAR THIS YEA (cb 0) (a) (>) 1. New Services Connected 5. Miles Transmission fi 68 104 : 0 c tribution - 2. Services Ratired Gs: Miles iste ution ii 9 overness 286.7 202 1 7, Miles Distribution - 3. Total Services in Place . | 2,978 2,985 Underground | 42.6 44.7 4, Idle Services 3. Total Miles Energized! (Exclude Secsoncl) (S +6 +7) REAForm7 (Rev. 8-88) PAGE 1 OF 7 PAGES VaUA + REA ' FINANCIAL AND STATISTICAL REPORT — WApSSAS_28 Cooper Valley __ — INSTRUCTIONS - See REA _EOM-2. December 31, 1991_ Audited | spelt PART C. BALANCE SHEET ASSETS ANO OTHER DEBITS LIABILITIES AND OTHER CREDITS 4 1. Total Utility Plantin Service, =. ww 24,543,971 26. Memaersile So jj )0r pS SiS spt 14 £90 2. Construction Work in Proyress wwe 72,654 } 27. Patroneyeaotal . - ee eee & 266 ove ii 3. Total Utinty Mamt(L*2) 2 2. . ee 24,616,625 28. Operating Margins -Prior Years. wwe ee int 4, Accum. Provision tor Depreciation ana Amort.. 10,793,531 __| 29. Operating Margins - Current Year [anlegh las 444 219 ail 5S. Net Utility Plant (3-4). . = . * eS 3 823.094 30. Non Uperating wiargins . = 7 . a a 216 9 mim 6. Nonutility Froperty-Net 2. 2 we 9,000 31. Otner Marginsana Equites . 6 we . 2.995 a 7. Invest. In Assoc. Org. - Patronage Capital. . 384,641 32. Total Margins & Equities (26 tnru 31). ° . 7,14) "93 2 =a 8. Invest. in Assoc. Org. -Otner-GeneralFuncs . a 33. Long-Term Leot REA (iNet). ° . ° . TDs 24 9. Invest. In Assoc. Org. - Otner - Nongenerai Funas co Jc Yo Ee | (Paymiens-Unerpriea $ ) 10, Otner Invescinents . . . . . . = on _} 34. Lony-lerin Geot + Otter (iNet). . . . An ed ll. Scecial Funas . . . . . . m ° Oo} (Paymen,s-Unacviiea $ ) 12. Total Otner Property & Investments (6 thru 11). J6e 90071 35. Total Lony-Term Lect (23 + 34). ° . e psy 279 GAs 13. Casn-Generat runes. . . . . : 1904 727 _! 36. Notes Fayaule . . . at oll . : . i ia 14, Casn -Construction Funas-Trusee . . . 2] 37. AccoumsPayaole . 2 . . . £30 34 q 1S. Special Deposits 2 ww ee le 16,626 __ | 38. Consumenm Wecosts, 2. 1 eee 295 740 i 16. Temporary Investments. 2 2 1 ee 4,130,119 39. Otner Current & Accruea Liabilities 2... aS Boy 17. Notes Keceivacie-Net . . . . . . 232) 40. Total Current & Accruea Liaoilities (36 thru 39). 16282, 455 18. Accounts Receivaole - Net Sales of Energy. < 672 344 | 41. Oererrea Creans . . . . . . . MOG UTS A. | 19. Accounts Receivaole - Net Otner. ° . « 120 A44 _j 42. Miscehansous Ooerating Reserves. ° ° . a 20. Materials & Supplies - Electric ana Other . a ial Ee Bl 43. Total U ties & Otner Credits (32 + 35 + |21. Prepayments». ee ee 293200 40 tary az TITIES IE 20,597,718 | 22. Otner Current & Accruea Assets. . ‘ A 490,420 {| ESTIMATED CONTHIBUT 1ONS- IN-AID-OF CONSTRUCTION 23. Total Current & Accruea Assets (13 thru 22) . 6,042,593 Balance Beginning of year. omni 75,389 4. Oerferrec Deoits . . . 5 a * . (34,960) | Amounts Received ‘Vnis Ywar (Net). ‘ - 52,500 4 25. Total Assecs & Otner Leorts (5 + 12 + 23 + 24) 20.507 719° TOTAL Contrioutions-1n-Aia-Ur-Consiruction . . 122 aac PART D. NOTES 10 FINANCIAL SYATEMENTS THE SPACE BELOW IS PROVIDED FOR IMPORTANT NOTES REGARDING THE FINANCIAL STATEMENT CONTAINED IN THIS R ADDITIONAL S?ACE IS NEEDED, USE SEPARATE SHEET.) PORT. UF m Unbilled revenue (480,858) is not in Part C Line 18, but is in Patt C Line 22. Line 24 Deferred Debits: Cost of Power Adjustment (27,588) Temporary Facilities (7,929) 2-Yr Work Plan S57. (34,960) Line 41 Deferred Credit: Contribution-In-Aid 133,889 Advance Electric Receipt 59,677 Unclaimed Property 2,184 195,750 [ERECT ene Tene ere reer eee ee REA Form 7 (Rey. 10-36) PAGE 2 OF 7 PAGE USDA - REA FINANCIAL AND STATISTICAL REPORT BORROWER CESIGNATION al 1 YEAR ENCING Conrer Valley REA USE ONLY ' ICTIONS - See AEA EOM-2. December 31, 191 Aucited | PART E. CHANGES IN UTILITY PLANT SAA CeneeG NNING ADCITIONS RETIREMENTS ADJUSTMENTS | |p. ance END OF YEARITON aa! OF YEAR : a ANO TRANSFERS | = ep eee ! e | (a) (yi | fe? 4} | fe: i | ee and ane Lang Rignts (260). 226,036 5,098 | | i 231,134 ~€F tructures and Imorovements (361) 71,683 | | \ 71,683 lain tation Equipment (362). 0. 787,267 57,496 | | 944,763 | a5 cin, Toners ne Pierres C38. 974,137 siszo | | (2s,005) 1 4,200,627 13.3 | 7 huerhead, Conductors and Devices (365) |_ 3,608,964 as ! | 25,99 5. | 665,919 {271 reersround Conduit (966)... 27.659 | | 27,459 1a Iecerground Conductor & Devices 267)|_ 2, 706, 339 75,229 i : | 2,791, ss2 'ae arsformers (268) 1,192,795 33,272 | 42,274) ! i 4.996,7¢2 '! ar | ervices (269). 372,050 32 64s ! ! | ano cos tt | fecers (370! _ 2 ! - 5 ae i ' Somnisoue eis teers(390) 2 2 eb 265 455 ! 14 093 (1252) ! 272 16 25 nstailation on Consumers’ Premises (37111 1190 954 | ! 419 a70) 3 ! 190 975. re : wtased Property on Coramer’s Premises O72|_ : ‘ t ! ! treet Lighting !273) 5 ! i | WSTOTAL Distribution (t zhu 13). | 43 aso aag 647.213 | (62,711) | A | aiaiaiatiodh a ane anc Lanc Riznts (289). 4 i i | Bee sures and Imsrovements (290). | 986,523 | 225 597 | seniture & Equioment (391). 3205 47) | 22290 3 —§2, 753) : \ aeQUCA= €5 ' “ransceration Ecuioment (392) . 650,882 | 5a7 QF. . 3 S87) i | Sis 427. 116, 2 | itores, Tools, Shoo, Garage, and ' | | | ory Eo 393, 394, ; ne ler veratery Ecuioment (393, 394, 385) | 07 672 a5 : O8 65s ‘ower -Casrated Equioment (396). | | i i 5 | tommunication Equisment (397) 86,999 | 9390 ! ‘ t Wena zolee | Aiscellaneous Equioment (398) 6 366 360 ! | | a 34e ie ! T 7 1 + Dther Tangible Precerty (399) 2. | F i 1 | i i | SUBTOTAL - General Plant (15 thru 23)} 133,013 119 3474 i geayary t oO. | ntangibles (201, 202, 203) . 2 1720 | ! : ~and ard Lard Rights, Roads and | i | Teaiis (250, 359) . ! ! | Structures and Imorovements (352) | i | ! | . ; i i ‘ Station Equipment (253) i I : i Towers and Fi; es and Poles and i | i | cures (354, 355) ! ! ! ' Overhead Conduczors & Devices (358) . | ! ! ! i i Urdersround Conduit (257) . I \ | I | Underground Conduczor & Devices (358) ! i | | | SUBTOTAL - Transmission Plant t (23 wew 32). | ; - Preduczion Pian - Steam (310-316) . : | | | Production Plant - Nuclear (220 - 322). | | ; i Production Plant - Hy¢ro (320-328) | | i Produczicn Ptant - Other (340-346). 7,868,799 20,334 | : | 7 All Otrer Usiny Ptant (102, 104-106,114,118) bl aa a1 293 | I | SUSTOTAL (14+24+25+33+34 thru 38) truction ‘Nork in P-ogress (107). TCTAL UTILITY PLANT (39 + 30) 23,900,411 : \ Form 7 ;Rev. 12-55) PAGE 3 OF 7 PAGES « Electric Wlasxa 18 Conver Vallev FINANCIAL AND STATISTICAL REPORT YEAR ENDING REA USE ONLY INSTRUCTIONS - See REA EOM-2. Decemoer 31, 1991 Audited PART F. ANALYSIS OF ACCUMULATED PROVISION FOR DEPRECIATION — TOTAL ELECFRIC PLANT IER maa idl GENERAL PLANT ToS a Snes OTHER PLANT fa) fo» fer | (a) t. Balance Beginning of Year. 4,925 ,843 | 1,053,905 | 4,102,760 | 2. Aaaitions - Depreciation Accruals Cnarged to: I ; a. Ceoreciation Exoense . 452),125 44,383 _ el | b. Clearing Accountsana Otners . 2 we 0 | 124,079 = . | €. Subtotal (a + 0} 432,125 163,462 LL ‘ ! 3. Less - Plant Retirements: a, Plant Retired . 62,712 83,141 bd. Removal Costs 0 0 | c. Subtotal (a + 0) 62,712 83,141 | 4. Plus Salvaged Materials 627 12,452 ! 5S. TOTAL (2¢-3¢ +4). 370,040 | S773 : i | 6. Ctner Agjustments-OenitorCrecit . . . 0 | 7,803 | | | 1 i j 7. Batance Eno of Year (1*+526). . . . 5,295 ,883 1,159,481 | PART G. MATERIALS AND SUPPLIES nly BALANCE BEGINNING | purcHaseD | SALVAGED | USED (NET) } soto | aosustment | _ BALANCE | fa) fd) fer (a) fer | mn a i ~ Ctmer (155 = 156) 3. Ratio of inventory Turnover — Electric 4. Inventory — Eleczric as > trem 412 PART H. SERVICE INTERRUPTIONS arte X 100 = ent of Total Utility tant AVERAGE HOURS PER CONSUMER BY CAUSE T ITEM POWER SUPPLIER | EXTREME STORM PREARRANGED ALL OTHERS | (a) (d) fe) ia) | L. Present Year 68 | gi C02 | -82 | 2. Five-Year Average 148 1.39 I 37 [ 1.10 | PART 1. ~ Number of Full Time Emoloyees - Emoloyee - . Employee - Hours Worked - Reguiar Time Hours Worked - Overtime 33 4. Payroit - Exvensea 72,231 {s. Payroil - Capitatized 3,43 6. Payroll - Other PART J. PATRONAGE CAPITAL ITEM General Retirement 1. 2. Sceciai Retirements THIS YEAR CUMULATIVE (a) Q) s bs Total Retirements (1 + 2) 4. Patronase Capital Assisnec 5S. Patronage Capita: Assicnadle REA USE ONL’ EMPLOYEE-HOUR ANO PAYROLL STATISTICS + ea Ir. ko [S t~ |) |@D ov Ina Oy PART K. DUE FROM CONSUMERS FOR ELECTRIC SERVICE 5,860 1. AMOUNT OVE OVER 60 DAYS 12. AMOUNT WRITTEN OFF OURING YEAR INCLUDED IN TOTAL COST 5. TOTAL REA Form7 (Rev. C8-88) NAME OF SUPPLIER SUPPLIER kWh PURCHASED Tota cost |,,S°St. | Fuet cost NHEELING AND. CODE ADJUSTMENT i (cents) (or Credits) fd) fe) (d) fe) a) (2) °K _Enercy Authority 37,740,090 415,366 | al | a PAGE 4 OF 7 PAGES BORROWER DESIGNA. ow USOA-REA } - las coer Valley FINANCIAL AND STATISTICAL REPORT Yeas ENONG cree Tess RUCTIONS-_See REA EOM-2. December SL 1997 i | PART M. LONG-TERM LEASES (If addisiona! srace is needed, use separate sheet.) LIST BELOW ALL “RESTRICTED PROPSRTY** HELD UNCER “LONG- M’ LEASE. (If none, "NONE") RENTAG ENTAL NAME OF LESSOR N/A | TYPE OF PROPERTY THIS YEAR | | | » TOTAL ¢ “RESYRICTED PROPERTY” means all properties other then automodiles, trucrs, treilers, fructors, otner vehicles (inctuding without iimitation sircre/t ad ships), office, geruze and warehouse spuce and office equipment (inctuging witnout limitation computers). “LONG-TERM” means teuses huving expired terms of more than 12 montns (tazing irto account terms of rentct at tne option of the lessur, weiner or not sucn leuses have Owen meneued), j PART N. ANNUAL MEETING AND BOARD DATA + Oate of Last Annual Meeting ql Total Numoer of Meincers fl Numoer of Memoers Present at 4. Was Quorurn Present? . Meeting I G May, 1991 | 1955 ; 138 i ves Cine « Sumser ct Memcers Voting dy 6. Total Numcer of Soars Memcers 7. Total Amount of Fees ang Excenses |8. Oces Stanager Mave wri Ssacw Proxy or Mail | | for Soara Members $79 8 S$ 57,807 Ci ves Kano PART O. LONG-TERM DEBT —OTHER AND DEBT SERVICE REQUIREMENTS BALANCE BILLED THIS YEAR | REA USE ITEM ENO OF YEAR INTEREST | PRINCIPAL | TOTAL CNLY (a) @) fc) (d) fe) « National Rural Utilities Coooerative Finance Carzoration | | | | | « Bank tor Coooeratives ! | | | | + Fecerat Financing Sank | | | | ! «Other (Lise Sepurutely) | | | | | . USDA-2EA h2,177,280 | 541,336 | 496,222 2,637,552 | | ! ' | | I I l | | - sOTAL (Sum of 2 taru 7) 12,177,286 1 $i417336 |!) 4987222 kos, 55¢ | PART P. CONSERVATION DATA ITEM | LAST YEAR THIS YEAR | ITEM | LAST YEAR 1 rae re AR ta) for (ar _ Number of Enwtoyees = Kult Time | 0 | 0 Ia. bayrou l 0 | 7 1. Number of Emuiuyees-vart Yime | OQ I 0 Is. Ctner Exvemes | 0 | Cc }. Tota: Emotuyees = huurs ! 0 | 0 l6. memoer Cuntaces 7 I 9 | 0 PART Q. TYPICAL MONTHLY BILLS FOR ELECTRIC SERVICE 1. RESIDENTIAL SERVICE (Sarm ana nonfarm for cumestic ena furm use.) SCHEDULE NAME ANO DESIGNATION | allen Residential rey MINIMUM BILL | | | | | r 250 kwn suo kwh 750 kwh 1,0u0 xwn 2.800 Kwa Inct. 4 xwa | wy 750) | 55.30 ' 191.2 | 144,28 | 12720 Nazevlea 2. COMMERCIAL SERVICE (Commercict dusiness estadtisnments: stores, offices, restuurunts, yuruges, eic., fur lignting ana power purgcecs.) | SCHEDULE NAME ANO DESIGNATION tlenrallen § ay mercial 6 kw 12 kw | gu kw | a0 kw | 50 kw | lcu xw 730 Kwa | 1,500 kwn 6.0uu kwh 10,000 kwn 12.5uu0 kwn wn i : 70 I 1677.50 T2083 .00 T4923 .50 | 1 an . 2 3. INOUSTRIAL SERVICE (incuserial ex:colihinents huving cemunds of mure tnan 50 RW ur consumptiun of mure trcn 15,000 RWA yer mon SCHEDULE NAME ANO DESIGNATION 30.CGU kwh I 60,000 kwn T 60,0uu kwh ! 120,000 kwh I 100,0uu kwnr | 22u.0co kWwr = aT = Fania ahtvi ii cis TMS TTI e RR sc 679) an . 68a7 AN 1A 7227.00 17,879.00 Ui 00 | 28 935.00 lovu kw | . $,0u0 kw 2uvuus Kan Ent 400,000 kwh | 1.50u.cuv_kwn ] 2.50u.cv0_kwr REA Form7 = (Rev. 08-88) PAGE 5 OF 7 PAGES USOA-REA BORROWER DESIGNATION Alaska 18 Conver vallev FINANCIAL AND STATISTICAL REPORT SSS SEX WEE GNLY Auded at RUCTIONS -_See REA _EOM-2. December 31, 181 | PART Mi. LONG-TERM LEASES (If addisionsl spuce is needed, use separsre shee.) LIST SELOW ALL “RESTRICTED PROPERTY’** HELD UNDER “LONG-TERM” LEASE. (If none, stste “NONE")" | RENTAL NAME OF LESSOR | TYPE OF PROPERTY | This Yeas L. | | 2. | 3. TOTAL | ** “RESTRICTED PROPERTY” means all properties other then cutomobdiles, trucks, trailers, trectors, other vehicies (including without iimitetion cirereft and ships), office. gorege and warehouse space and office equipment (including without limitation computers). “LONG-TERM" means lecses hevinz unexpired terms of more than 12 months (taking into account terms of rentci at the option of the lessor, whether or not such leases have been renewed). PART N. ANNUAL MEETING AND BOARD DATA 1. Oate of Last Annual Meeting 2. Total Number of Memcers 3. Numcer of Members Present a: 4, Was Quorum Present? Meeting — 0 ves Zino S. Numcer of Memoers Vating dy 6. Total Numoer of Soarc Mi ers 7. Total Amcunt of Fees anc Expenses |3. Coes Manager Have vrit Proxy or Mail for Boarc Memoers — | Ss O ves SS PART O. LONG-TERM DEBT—OTHER AND DEBT SERVICE REQUIREMENTS BALANCE BILLED THIS YEAR | REA use ITEM ENO OF YEAR INTEREST | PRINCIPAL | ONLY (cp (0) (c) (¢) fe) 1. National Rural Utilit es Coccerative Finance Corscration | | | : | 2. Eank for Cooceratives | | | | | 3. Feceral Financing Sank | | | | | 4. Other (List Separstely) | | ! | | 5. | | | | | | | | | | | | | | | 3. TOTAL (Sum of 1 tnru 7) | | | ! | PART P. CONSERVATION DATA } — ITEM cae eae THIS YEAR | ITEM [ tAST YEAR | THIS YEA? fa) Qi fa) (a) L. Number of Emoloyees - Full Time | | la. Payrom | | 2. Number of Emoloyees - Part Time | | Is. Crner Exsenses - | | |3. Total Employees - Hours | | Is. wtemoer Contacts | | PART Q. TYPICAL MONTHLY BILLS FOR ELECTRIC SERVICE 1. RESIDENTIAL SERVICE (Ferm end nonfarm for domestic end furm use.) SCHEDULE NAME AND OSSIGNATION 7 Valdez Residenti MINIMUM BILL 250 kwh | $00 kwh | 750 kWh | 1,000 kwn | 2.200 «YIN Incl. 0 kwh Fi. 50) | 47.80 | 88.10 | T2750 | 166.30 | 3¢9.10 fet 2. COMMERCIAL SERVICE (Commercial business estcdlishmenis: stores. offices, restaurents, gerezes, etc., for lighting end power purposes) SCHEDULE NAME ANO DESIGNATION Valdez Small Commercial 6 kw 12 kw 30 kw 40 kw | sO kW | 100 KW 750 xwn 1,500 kWh 6,000 _k\Wwn 10,000 kwn 12,800 kwn 30,000 kwn 137.40 | 262.80 875.20 [1404.00 |__ 1734.50 4048.00 3. INOUSTRIAL SERVICE (Industrial establishments heving demends of more than 50 kW or consumption of more then 15,C0U Riv per month.) | SCHEOULE NAME ANO CESIGNATION Valdez Larce Commercial iso kw 300 Kw | 500 KW 30,000 kwn | 62,000 kwn 60,900 kwn | 120,000 kwn | 100,000 kwn | 200,900 kWwn 5056.00 7822.00 $922.00 | 14,544.00 | 14,310.Cc0 | 23.530.0C 1,000 kw | 5,000 kw 200,0CC kywn 400,000 kWh | 1,500,0C0_kwn ] 2.500.000 kwh 27,530.00 | 45,970.00 | 179,390.00 271,590.00 REA Form 7 (Rev, 12-33) PAGE 5 OF 7 PAGES USUA . HEA BUMMUWER UESIGNATIC Alaska 18 Cccser Vailev FINANCIAL AND STATISTICAL REPORT | YEAR ENDING REA USE ONLY M""QUCTIONS - See HEA EUM-2. Cecemcer 31,1991 Audited PART R. POWER REQUIREMENTS DATA BASE CLASSIFICATION coneoees SALES JANUARY FESRUARY MAKCH APRIL MAY | JUNE REVENUE OATA z (a) () () fe! (e) yf BIG ssitees consseees Sas 22121 2,129 | 2,120 | 2.338 2.147 ! 2,182 | fectaaingreaonatyeeemsea TT .552,522 11,429,816 11,139,022 11,220,237 Ti oai.seo Ti.908.179 | ce. Hewwoue | 296,016 247,844 | 213,607 210.940 207,291 | 202.086 a. No. Consumers Serwd 2. Residential Saies - T Seuions >. Yn Sord ic. Revenue | | | 3, Irrigation Sates bd. kn Sold | | | | 2. No. Consumer Served | | | | | nee ] 1 | | 1 i asrteas consunrersi Serres 495 494 491. 229 492 so2_| i Coens Oe b._kWn Sata T3 192,529 | 2,870,128 2,828,422 3.290 289 2.399.671 plata aed | h Je. Revenue 524,706 aan.2ne | asi.gae | i 4taiie7 | 4p2 nae | snziese | | $. Comm, anc Ind. Over 10CO kVA — [D._ WN Sora 4 $+ —___— te Jc. Revenue ! a. No. Comument Served 1 1a 13 12 12 | 6, Public Street and ] - = zo | 20°75 Hignway Lignting b. kWa Sold | 13.230 2,193 | 2 468 | § 149 I a 7 | einevenae I Sieaclll rain! rsso | 19123 eas | 2. No. Consuinens Served sa | &Q £2 52 co | 7. Otner Seies to ayia Tens | Puntic Autn, of 554 £O 7287 Ce 247 60,310 7a T rain | 1s 724 | TiS Re 11 gan _| wzs39 | 2. No. Conturners Served | | 8. Sates tor Resales - ] | REA Borrowers [D+ *WWM Said jc. Rewnve | | | | | a. No. Consunvers Served | 9. Sales tor Resates - [— | Otners ib. kn Sond ic, Rewnue | | | | ! if { 0. TOTAL No. Consumers (lines 1a - 9a) | i 2 604 2 300 2 690 2654 Sulaaie anies aus EE 3. TOTAL kWh Sold (tines 15 - 96) 4 ene 905 2. TOTAL Revenue Received Fromm Sales of Etectrie Energy (lines tc - 9c) 857,938 | 723,663 699,274 682,932 717,663 739,618 3. Ctner Eiecinic Revenue 380 $60 410 440 4,379 21,049 | 4. kWh + Own Use 1Q ANE 2 3 & 14 cav7 18 AI2Z o7 269 oe 240 5. TOTAL kWh Purcnased 1.9 92 (49,630) 575.754 2.919.628 4.325.722 1 { j. TOT. cry 6. TOTAL <ivh Generated 5.914.091 | 9.099 99 ralicr 4.117.958 652,880 | (44,623) | 17. Cost of Purchases aca Generation | ie 514,889 4i4 18. .serenange - kWh - Net 19. Peax «Sum Ail «Ww Input (Metered) & Comeident 2 Non-Comeident REA Fom7 (Rev. 08-88) PAGE 6 OF 7 PAGES ——— USOA- RE BORACWEA CéSi | cos . _. es Alaska 15 ' FINANCIAL AND STATISTICAL REPORT SS SS ee RUCTIONS - See REA ESM-2. Decarncer 31, 1591 PART R. POWER REQUIREMENTS DATA BASE (Co ued) (SEE PSECEOING PAGE 6 OF REA FORM 7 FCR HEAUINGS OF LINES ITEM NUMSERS SE CINE JULY AUGUST SEPTEMBER ccToser NOVEMBER DECEMBER NUMBER w tm ti @ () a a. | 2,156 | 2,182 2.238 | 2.202 2,21¢ | 2,169 [meta core) 016,441 | 10¢ | O57 ga cas = | 7 | . | 199,010 | | 2 | 2 a] | Ee ai | | | | | | I | | | E al | | ce. | | | | 503 | 557 eas | 4. Ld. | 4 iho "Fon | 2,927,522 3577 9c | a le | 4292 7059 | 4325 3197 | 4373 Ant | 2. 1 1 3 | S. fio. 1968 enn 1¢1 430 9:79) 79H | c._| 25 442 _ | 2s ezn | so azn | a. 12 12 | re | 6. |b. | 2.760 2 474 | " ce. | 2271 oases | ae eel | Pere eee —1_-o5£ 43 25> La. 61 él | aa 7 Lb. 67,084 73,197 pons Q22 ez,167 | ce. | 17,162 12,222 23,190 | 4203 te are | La. | | | | ! 8. |b. | | c. | | | | | a. | | 9. Le. | | c._ | | | =i 2,749 2,769 27025 27S 2,807 4,353,025 4,273,149 S Cl 222 4,338,0€2 ! UW2a peat 724,842 652,714 £¢s C29 663,243 675 570 995 §s80 2,135 Csn2ss iyo oiee 6,352 7,867 | 8 ,43¢ 10,435 17,555 197328 Rely ane §,052),c20 4,641,420 4,532,676 4,257,661 2,769,738 {2,667,545 cee 7 (28,190) (22,,398)) (43,833) 5657776 2,304,724 27500), Lac 25,776,863 17, =a as - : 442,927 360,922 st3 7952 417,383 389,929 445,433 = REA Form 7 (Rev. 08-83) Penne repeats sere woe sree Seueeen os ueeer senioeens olor F < mainuining the data needed, and complesing and reviewsng the collecion of information. Send commenss regirding this b 4 csumute of any ther aspect of Yus couecuon @ sicrT aon, including sugzetions for reducing chia burden, to Depanment of Agriculture. Ciearance Officer, OIRM, Room 40+-W, Washington, DC 202S0; and wo the Offices of Manasenent and Budge. Paperwork K jon Project (OMUS 30572-C032), Washington, DC 20803. OMB FORM NO. 0572-0032, Expires OIUIZ | USDA-REA BCARCWER CESIGNATICN | Alaska 18 Ccoper Valley SCRRCWER NAME ANO ACCFES: INVESTMENTS, LOAN GUARANTEES Cesper AND LOANS - DISTRIBUTION 2.0. ae 45 (All Investments Not Exciuded by 7 CFR 1717, Subpart N) Glennallen, 2X ¢95282 INSTRUCTIONS - Submit an original and four copies to REA. Round all amounts to | YEAR ENCING nearest doiler, DECEMBER 31, 19 91 Audited I. INVESTMENTS < w Pr ie o ks m - © a a m” he a w un uw Oo a ' fw at re fo 1 nt J a TOTAL INCOME OR Fo: DESCRIPTION INVESTMENT Loss (a) (d) (c) (ee 1. NONUTILITY PROPERTY (NET) Account 121 LESS Account 122° j a3 lots - Alpine Estates 9,000 ! b. | | c. | 2. INVESTMENTS IN ASSOCIATED ORGANIZATIONS = Accounts 123.1, 123.11, 123.23° a. Alaska Rural Electric Coop Assa Insurance Exchance 322,374 VESTMENTS Accounts 124 through 128° ite Services . TEMPORARY INVESTMENTS Accounts 131.1, 134, 135, 136, 141 LESS 141.1 and 145° c . COMMITMENTS TO INVEST WITHIN 12 MONTHS: _ Report All Accounts Fxecpt NOT ACTUALLY PURCHASED Approved Exclusions a. c. 6. TOTAL (Items I through 5) 393,641 * except Approved Exclusions II. LOAN GUARANTEES CRIGINA LOAN BALANCE 7 NAME OF ORGANIZATION MATURITY OATE AMCUNT feaseres os (a) (b) (c) (c) (2) IIT. LOANS ORIGINAL _ | RS NAME OF ORGANIZATION MATURITY DATE AMCUNT LOAN BALANCE (a) i) (c) (2) (2! 1, EMPLOYEES, OFFICERS, DIRECTORS | | 3.33 | | | | 1, TOTAL: (Z.6. (>) + II.4.(d)] Es 2. TOTALUTIUTY PLANT (RZA Form 7, Part C, Line 3) | 24,626,62 3. PERCENT OF TOTAL UTILITY PLANT ([Icems IV.1. + IV.2.] + 100) | Gos Ferm 7a (Row 17.G7) COPPER VALLEY ELECTRIC ASSOCIATION, INC FINANCIAL STATEMENTS MAY 31, 1994 CERTIFICATION WE HEREBY CERTIFY THAT THE ENTRIES IN THIS REPORT ARE IN _ ACCORDANCE WITH THE ACCOUNTS AND OTHER RECORDS OF THE SYSTEM AND REFLECT THE STATUS OF THE SYSTEM TO THE BEST OF OUR KNOWLEDGE AND BELIEF. DATE: MANAGER, ADMINISTRATION & FINANCE DATE: GENERAL MANAGER COPPER VALLEY ELECTRIC ASSOCIATION, INC. TABLE OF CONTENTS 1994 FINANCIAL STATEMENTS FILENAME: TABLE BALANCE SHEET FORM7 MONTH ENDING COMPARED TO BUDGET YEAR-TO-DATE COMPARED TO BUDGET YEAR-TO-DATE COMPARISON 1994 TO 1993 ACTUAL YEAR-TO-DATE BY DEPARTMENT SUMMARY OF DEPARTMENT FINANCIALS - GEN MGR/MEMBER SERV SUMMARY OF DEPARTMENT FINANCIALS - ADMINISTRATION SUMMARY OF DEPARTMENT FINANCIALS - ENGINEERING SUMMARY OF DEPARTMENT FINANCIALS - OPERATIONS SUMMARY OF DEPARTMENT FINANCIALS - PRODUCTION CAPITAL EXPENDITURES COMPARED TO BUDGET BOARD OF DIRECTOR SCHEDULE PRODUCTION COST PER KWH GENERATED REVENUE SCHEDULE CASH BALANCE PAGE 11 14 16 19 20 21 22 2 hoe bW a ON oO oO. ALLEY ELECTRIC ASSOCIATION BALANCE SHEET FOR FERIGO ENDING MAY Gi, 1994 CURRENT ASSETS AND OTHER GEBITS TOTAL UTILITY PLANT IN SERVICE 27,778 ,C41 CONSTRUCTION WORK IN PROGRESS 737 ,682 GOTAL UTILITY PLANT (1 + 2) CCUM PROVISIGN FCR DEPR & ANGRT NON UTILITY PROPERTY —- NET INVEST IN ASSOC CRGE-PATKRENAGE CAP INVEST IN 4SSO0C oa CTHER-GSEN FUND INVEST IN ASSCC ORG- ~GTHER- NGNGEN CTHER INVESTMENTS SPECIAL FUNDS TOTAL GTHER PROPERTY & INVESTMENT CASK - GENERAL FUNDS CASH - CONSTRUCTION FUNDS-TRUSTEE SPECIAL DEPCSITS TEMPORARY INVESTMENTS NOTES RECEIVABLE - NET ACCTS. REC. — NET SALES OF ENERGY ACCTS,. REC.- NET GTHER MATERIALS & SUPPLIES - ELECTRIC PREFAYRENTS OTHER CURRENT & ACCRUED ASSETS TOTAL CURRENT & SCCRUED ASSETS DEFERRED DEBITS TOTAL ASSETS ANS GTHER GeEwITS mh HoL ot re sG tes hope iz COFPER VALLEY ELECTRIC ASSOCIATION BALANCE SHEET FOR FERIGG ENGING MAY Gi, 1994 CURRENT 5. MEMBERSHIFS 11,555CR 7. PATRONAGE CAPITAL 7,247 ,F47TR 3. CPERATING MARGINS - PRICR YEARS 477 ,S72CR 7. GPERATING MARGINS-CURRENT TEAR S13 ,9F70CR 9, NON OPERATING MARGINS 30,4695CR 1. GTHER MARGINS AND EQUITIES 2,93SCR 2. TOTAL MARGINS 4N93 EQUITIES 7,659 ,242CR 3. LONG TERM DEBT REA —- NET éOR 4 LONG-TERM DEST - CTHER C 3S. TOTAL LONG-TERM GEST sCR 6. NOTES PAYABLE c 7. ACCOUNTS PAYABLE 626,472CR ick &. CGNSUMERS GEPSSITS 197 ,é623CR S1CTK 9. OTHER CURR & ACCRUED LIABILITIES 488,379CR 7ER Oo, -TOTAL CURR & ACCRIJED LIABILITIES 1. DEFERRED CREDITS 2, MISCELLANEGUS GPERATING RESERVES ‘] 3, TOTAL LIABILITIES & GTHER CREDITS URRENT ASSETS TO CURRENT LIAB RATIO 3.14- ork ARGINS & EQUITIES AS .% OF -ASSETS S9.65-% 37.37% ONG TERM DEST AS % GF PLANT 33 .99-% 41.5-% a COPPER VALLEY ELECTRIC ASSOC. INC FORM 7 BY DEPARTMENT-1994 ACTUAL FILENAME:\FR94\FM7DPT1 FOR THE MONTH ENDING 5/31/94 FOR THE YEAR ENDING 5/31/94 ACTUAL YEAR TO DATE 5/31 OVER OVER 1994 1993. VARIANCE ACTUAL BUDGET (UNDER) ACTUAL BUDGET (UNDER) 94 OVER 93 VARIANCE VARIANCE (94 UNDER 93) 1, OPERATING REVENUE & PATRONAGE CAPITAL 842,938 795,522 ATAI6 4,010,881 4,247,349 (236,468) 4,010,881 4,114,067 (103,186) 2. POWER PRODUCTION EXPENSE 169,382 241,933 (72,551) 1,320,063 1,545,200 (225,137) 1,320,063 1,556,536 (236,473) 3. COST OF PURCHASED POWER 343,144 222,806 120,338 912,072 792,875 119,197 912,072 890,108 21,964 4, TRANMISSION EXPENSE 2,132 1,465 667 9,774 7,325 2,449 9,774 3,416 6,358 5, DISTRIBUTION EXPENSE-OPERATION 43,811 40,182 3,629 200,725 200,906 (181) 200,725 182,290 18,435 6. DISTRIBUTION EXPENSE-MAINTENANCE 30,158 40,024 (9,866) 131,376 200,122 (68,746) 131,376 171,822 (40,446) 7, CONSUMER ACCOUNTS EXPENSE 24,157 25,570 (1,413) 132,881 129,148 3,733 132,881 124,667 8,214 8. CUSTOMER SERVICE & INFORMATIONAL EXPENSE 7,709 7,843 (134) 33,607 39,214 (5,607) 33,607 24,762 8,845 9. SALES EXPENSE 20 363 (343) 1,938 1,813 125 1,938 270 1,668 10. ADMINISTRATIVE & GENERAL EXPENSE 80,969 72,709 8,260 400,566 364,360 36,206 400,566 358,889 41,677 11, TOTAL OPERATION & MAINTENANCE EXPENSE 701,481 652,895 48,586 3,143,002 3,280,963 (137,961) 3,143,002 3,312,760 (169,758) 0 0 oO 12. DEPRECIATION & AMORTIZATION EXPENSE 66,940 66,693 247 335,741 333,467 2,274 335,741 336,320 (579) 13, TAX EXPENSE-PROPERTY 2,631 2,862 (231) 14,606 14,310 296 14,606 13,773 833 14, TAX EXPENSE-OTHER 0 0 0 0 0 0 0 oO 0 15. INTEREST ON LONG TERM DEBT 40,471 40,425 46 202,356 202,124 232 202,356 210,205 (7,849) 16, INTEREST CHARGED TO CONSTRUCTION-CREDIT 0 0 0 0 0 0 0 0 0 17. INTEREST EXPENSE-OTHER 268 833 (565) 1,186 4,167 (2,981) 1,186 1,188 (2) 18. OTHER DEDUCTIONS 0 0 0 0 0 0 0 0 0 19. TOTAL COST OF ELECTRIC SERVICE 811,791 763,708 48,083 3,696,891 3,835,031 (138,140) 3,696,891 3,874,246 (177,355) 20, PATRONAGE CAPITAL & OPERATING MARGINS 31,147 31,814 (667) 313,990 412,318 (98,328) 313,990 239,821 74,169 0 0 0 0 0 0 21, NON OPERATING MARGINS-INTEREST 6,819 3,667 3,152 25,990 18,333 7,657 25,990 25,497 493 22, ALLOWANCE FOR FUNDS USED DURING CONSTRUCT 0 0 0 0 0 0 0 0 0 23. NON OPERATING MARGINS-OTHER 0 0 0 4,616 4,635 (19) 4616 5,547 (931) 24, GENRATION & TRANSMISSION CAPITAL CREDITS 0 0 0 0 0 0 0 0 0 25. OTHER CAPITAL CREDITS & PATRON DIVIDENDS o : 0 0 0 0 0 0 10,574 (10,574) 26. EXTRAORDINARY ITEMS 0 0 0 0 0 0 0 0 0 27, PATRONAGE CAPITAL OR MARGINS 37,966 35,481 2,485 344,596 435,286 (90,690) 344,596 281,439 63,157 OPERATING TIER (20+ 15)/15 177 1.79 255 3.04 255 , 214 TIER (27+15)/15 1.94 1.88 270 315 2.70 234 COPPER VALLEY ELECTRIC ASSOCIATION INC FORM 7 BY DEPARTMENT-1994 ACTUAL FILENAME MROAVMTOPTI FOR THE YEAR ENDING 691/04 FOR THE YEAR ENDING 601/04 OVER REVENUES = GENMGR. ‘ADMIN, ENGINEER PRODUCTION OPERATIONS NON ACTUAL BUDGET (UNDER) DEPART 1. OPERATING REVENUE & PATRONAGE CAPITAL 4,010. 4,010,001 4,247,940 2. POWER PRODUCTION EXPENSE 1,181 11,040 4,077 1,272,906 1,320,069 1,845,200 3. COST OF PURCHASED POWER 912,072 912,072 4, TRANMISSION EXPENSE 4,007 4.967 9774 1,326 . DISTRIBUTION EXPENSE-OPERATION 3.289 70,100 127,972 200,725 200,006 6, DISTRIBUTION EXPENSE-MAINTENANCE 9,060 172.16 131,976 200,122 (60,746) 7, CONSUMER ACCOUNTS EXPENSE 64,598 40.343 132,001 129, 3739 8. CUSTOMER SERVICE & INFORMATIONAL EXPENSE 33,607 (5,607) ®, SALES EXPENSE 1.938 1013 128 10. ADMINISTRATIVE & GENERAL EXPENSE 200,707 199,059 364,360 36,206 11, TOTAL OPERATION & MAINTENANCE EXPENSE o 237,403 200,499 119,044 302,908 ° 3,143,002 3,200,963 (137,961) 12, DEPRECIATION & AMORTIZATION EXPENSE 336.741 395,741 333,407 2.274 13, TAX EXPENSE-PROPERTY 14,006 14,006 14,910 206 14, TAX EXPENSE-OTHER ° o ° ° 15. INTEREST ON LONG TERM DEBT 202,356 202,356 202,124 22 16, INTEREST CHARGED TO CONSTRUCTION-CREDIT ° ° ° 17, INTEREST EXPENSE-OTHER 1106 1,106 4 2.901) 18. OTHER DEDUCTIONS o 0 o TOTAL COST OF ELECTRIC SERVICE o 237,403 290.499 118,044 2,105,058 302,990 553.009 3,696,001 3,035,091 (136,140) 20, PATRONAGE CAPITAL & OPERATING MARGINS 4,010,081 237,409, (290,499) (118,044) (2,105,058) (302,998) (853.809) 313,000 412.3108 (90,328) 21, NON OPERATING MARGINS INTEREST 25,990 25,900 19,333 7.087 22, ALLOWANCE FOR FUNDS USED DURING CONSTRUCT ° ° ° 23. NON OPERATING MARGINS OTHER, aero 4.036 19) 24, GENRATION & TRANSMISSION CAPITAL CREDITS o ° o 26. OTHER CAPITAL CREDITS & PATRON DIVIDENDS: ° ° o o 20, EXTRAORDINARY ITEMS o o o o 27, PATRONAGE CAPITAL OR MARGINS (237,409, (290,499) (118.044) (2,185,050), (902,998) (853,869) 344,506 435,206 490,690) OPERATING TIER (2001515 258 304 TIER (2741515, 270 345 J COPPER VALLEY ELECTRIC ASSOCIATION 1994 FINANCIAL STATEMENT GENERAL MANAGER & MEMBER SERVICES 2; POWER PRODUCTION EXPENSE 535.1 OPERATIONS SUPERVISION & ENGINEERING TOTAL POWER PRODUCTION EXPENSE 8. CUSTOMER SERVICE & INFORMATIONAL 908 CUSTOMER ASSISTANCE EXPENSES 909 INFORMATIONAL/INSTRUCTION TOTAL CUSTOMER SERVICE AND INFORMATIONAL EXPENSE 9. SALES EXPENSE 913 ADVERTISING EXPENSE TOTAL SALES EXPENSES FOR THE MONTH ENDING 5/31/94 YEAR-TO-DATE 5/31/94 ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE (UNDER) (UNDER) OVER OVER 0 300 (300) 1,151 1,502 (351) 0 300 (300) 1,154 1,502 (351) 363 1,082 (719) 2,156 5,412 (3,256) 7,345 6,760 585 31,451 33,802 (2,351) : 7,709 7,843 (134) 33,607 39,214 (5,607) 20 363 (343) 1,938 1,813 126 20 363 (343) 1,938 1,813 126 COPPER VALLEY ELECTRIC ASSOCIATION 1994 FINANCIAL STATEMENT GENERAL MANAGER & MEMBER SERVICES 10. ADMINISTRATIVE & GENERAL 920 SALARIES 921.2 OFFICE SUPPLIES 921.18 MANAGER'S HOUSE 923.03 AUDITOR 923.04 HUFFMAN 923.2 OTHER PROFESSIONAL FEES 930 LEGISLATIVE EFFORT 930.12 ANNUAL MEETING 930,15 MEMBERSHIPS IN OTHER ORGANIZATION: 930.21 MANAGER EXPENSE 930.8 BOARD OF DIRECTORS EXPENSES TOTAL ADMIN & GENERAL EXPENSE TOTAL GENERAL MANAGER BUDGET FOR THE MONTH ENDING 5/31/94 YEAR-TO-DATE 5/31/94 ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE (UNDER) (UNDER) OVER OVER 4,240 5,486 (1,246) 21,434 27,430 (5,996) 395 439 (44) 1,591 2,196 (605) 739 689 50 3,168 3,444 (276) 2569. 0 2,569 18,069 16,000 2,069 9,814 3,417 6,397 51,409 17,083 34,325 0 2,083 (2,083) 1,176 10,417 (9,241) 7,440 8,078 (638) 44,906 40,392 4,514 2,848 8,040 (5,192) 21,717 22,710 (993) 3,940 2,683 1,257 14,241 13,417 824 2,499 1,778 720 6,365 8,892 (2,527) 6,556 3,002 3,554 16,632 15,012 1,621 41,041 35,696 5,344 200,707 176,991 23,716 48,769 44,202 4,567 237,404 219,520 17,884 COPP, JALLEY ELECTRIC ASSOCIATION 1994 FINANCIAL STATEMENT ADMINISTRATION 2. POWER PRODUCTION EXPENSE SOLOMON GULCH HYDRO PROJECT 535.1 OPERATIONS SUPERVISION & ENG DIESEL PLANTS 549 MISCELLANEOUS EXPENSE TOTAL POWER PRODUCTION 5. DISTRIBUTION EXPENSE-OPERATIONS 588 MISCELLANEOUS EXPENSE TOTAL DISTRIBUTION-OPERATIONS ts " CONSUMER ACCOUNTS EXPENSE 901 SUPERVISION 903 CONSUMER RECORDS 903.2 COLLECTIONS 904 UNCOLLECTIBLE ACCOUNTS TOTAL CONSUMER ACCTS EXPENSE FOR THE MONTH ENDING 5/31/94 YEAR-TO-DATE 5/31/94 ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE (UNDER) (UNDER) OVER OVER 2,010 1,843 168 9,468 9,213 255 143 204 (62) 2,382 1,022 1,360 2,153 2,047 106 11,849 10,235, 1,615 578 829 (250) 3,253 4,143 (890) 578 829 (250) 3,253 4,143 (890) 1,455 1,576 (120) 7,081 7,878 (797) 14,106 13,518 588 74,024 68,890 5,134 1,533 1,092 441 5,799 5,462 337 (857) 417 (1,274) (2,366) 2,083 (4,449) 16,238 16,603 (365) 84,538 84,314 224 COPPER VALLEY ELECTRIC ASSOCIATION 1994 FINANCIAL STATEMENT ADMINISTRATION 10. ADMINISTRATIVE & GENERAL 920 SALARIES 921.01 OFFICE SUPPLIES 921.02 POSTAGE & TELEPHONE 921.03 EQUIPMENT MAINTENANCE 921.17 OFFICE BUILDING 923 OUTSIDE SERVICES 923,35 ORCOM SYSTEMS 924 PROPERTY INSURANCE 925 INJURIES & DAMAGES 928 REGULATORY EXPENSES 930.11 MISCELLANEOUS EXPENSES 930.12 ANNUAL MEETING 930.13 EMPLOYEE DEVELOPMENT 930.91 MISC, BOARD EXPENSE TOTAL ADMIN & GENERAL EXPENSE TOTAL ADMINISTRATIVE BUDGET ip FOR THE MONTH ENDING 5/31/94 ACTUAL BUDGET VARIANCE YEAR-TO-DATE 5/31/94 ACTUAL BUDGET VARIANCE (UNDER) (UNDER) OVER OVER 22,538 20,076 2,462 105,322 100,380 4,943 662 877 (215) 4,256 4,385 (130) 1,151 918 234 4,933 4,588 345 485 786 . (301) 4,014 3,932 82 2,567 1,816 750 10,350 9,081 1,269 0 83 (83) 0 417 (417) 0 167 (167) 0 833 (833) 6,653 6,125 528 33,267 30,625 2,642 866 1,333 (468) 4,734 6,667 (1,933) 1,179 680 499 6,822 3,402 3,421 200 722 (521) 5,770 3,608 2,162 0 0 0 1,055 2,306 (1,251) 408 1,473 (1,065) 3,135 7,366 (4,231) 3,218 1,956 1,262 16,201 9,779 6,422 39,928 37,013 2,916 199,859 187,369 12,491 58,897 56,491 2,406 299,500 286,061 13,440 COPPE. . VALLEY ELECTRIC ASSOCIATION 1994 FINANCIAL STATEMENT ENGINEERING 2h POWER PRODUCTION EXPENSE SOLOMON GULCH HYDRO PROJECT 535.5 OPERATION SUPERVISION & ENGRING 539.5 MISCELLANEOUS HYDRO EXPENSES 541.5 MAINTENANCE SUPERVSN & ENGRING 544.5 MAINTENANCE OF ELECTRIC PLANT TOTAL HYDRO PROJECT DIESEL GENERATION 546.5 OPERATION SUPERVISION & ENGRING 548.5 GENERATION EXPENSES 551.5 MAINTENANCE SUPERVSN & ENGRING 4.. 560.5 568.5 5 571.5 TOTAL DIESEL PLANTS TOTAL PRODUCTION EXPENSE TRANSMISSION LINE EXPENSE OPERATION SUPERVISION & ENGRING MAINTENANCE SUPERVSN & ENGRING T-LINE MAINTENANCE SUPV & ENGRING TOTAL TRANSMISSION EXPENSE FOR THE MONTH ENDING 5/31/94 YEAR-TO-DATE 5/31/94 ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE (UNDER) (UNDER) OVER OVER 714 494 220 3,608 2,470 1,138 65 71 (646) 4,875 3,553 1,322 339 208 131 1,471 1,040 431 232 123 109 385 613 (228) 1,349 1,535 (186) 10,339 7,675 2,663 834 1,616 (782) 9,662 8,081 1,581 1,788 885 904 9,040 4,423 4,617 529 812 (284) 5,036 4,061 975 3,151 3,313 (162) 23,739 16,565, 7,174 4,500 4,848 (348) 34,077 24,240 9,837 677 260 417 2,319 1,300 1,019 677 260 417 2,319 1,300 1,019 oO 0 0 170 0 170 1,354 520 834 4,807 2,600 2,207 OT COPPER VALLEY ELECTRIC ASSOCIATION 1994 FINANCIAL STATEMENT ENGINEERING 5. DISTRIBUTION EXPENSE-OPERATIONS 580.5 SUPERVISION & ENGINEERING 588.5 MISCELLANEOUS 588.53 EMPLOYEE DEVELOPMENT TOTAL DIST EXPENSE-OPERATIONS 6. DISTRIBUTION EXPENSE-MAINTENANCE 590.5 SUPERVISION & ENGINEERING 593.5 OVERHEAD LINE TOTAL DIST EXPENSE-MAINTENANCE TOTAL ENGINEERING BUDGET FOR THE MONTH ENDING 5/31/94 ACTUAL BUDGET VARIANCE YEAR-TO-DATE 5/31/94 ACTUAL BUDGET VARIANCE (UNDER) (UNDER) OVER OVER 3,169 1,824 1,345 9,085 9,120 (35) 9,701 10,373 (672) 48,913 51,863 (2,950). 79 1,894 (1,815) 12,102 9,470 2,631 12,949 14,091 (1,142) 70,100 70,454 (354) 1,370 1,691 (321) 7,479 8,456 (977) 418 84 333 1,581 421 1,159 1,787 1,775 12 9,060 8,877 183 20,590 21,234 (644) 118,045 106,171 11,873 COPPt.. VALLEY ELECTRIC ASSOCIATION 1994 FINANCIAL STATEMENT OPERATIONS 4. TRANSMISSION LINE EXPENSE SOLOMON GULCH - SUBSTATION 560.7 OPERATION SUPERVISION & ENGRING 571.7 TRANSMISSION MAINTENANCE TOTAL TRANSMISSION EXPENSE 5. DISTRIBUTION EXPENSE-OPERATIONS COPPER BASIN 580 SUPERVISION & ENGINEERING 582 STATION EXPENSES 583 OVERHEAD LINE 584 UNDERGROUND LINE 586 METER EXPENSE 586.1 CONNECTS/DISCONNECTS . 588 MISCELLANEOUS EXPENSE . 588.3 EMPLOYEE DEVELOPMENT ° SUBTOTAL COPPER BASIN IT FOR THE MONTH ENDING 5/31/94 YEAR-TO-DATE 5/31/94 ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE (UNDER) (UNDER) OVER OVER 369 283 86 1,208 1,416 (208) 408 662 (254) 3,759 3,310 449 77 945 (168) 4,967 4,725 242 1,297 1,123 175 8,263 5,613 2,650 0 225 (225) 0 1,125 (1,125) 194 544 (350) 2,674 2,718 (44) 842 487 355 973 2,437 (1,464) 1,628 1,056 573 2,838 5,279 (2,441) 1,249 1,332 (83) 5,140 6,661 (1,522) 4,262 4,916 (654) 19,419 24,578 (5,159) 1,291 1,125 165 5,713 5,626 87 10,763 10,808 (45) 45,019 54,038 (9,018) COPPER VALLEY ELECTRIC ASSOCIATION 1994 FINANCIAL STATEMENT OPERATIONS VALDEZ 580 582 583 584 586 586.1 588 588.3 6. SUPERVISION & ENGINEERING STATION EXPENSES .. OVERHEAD LINE UNDERGROUND LINE METER EXPENSE CONNECTS/DISCONNECTS MISCELLANEOUS EXPENSE EMPLOYEE DEVELOPMENT SUBTOTAL VALDEZ TOTAL DISTRIBUTION-OPERATIONS DISTRIBUTION EXPENSE-MAINTENANCE “COPPER BASIN 590 593 594 595 2 595.1 596 597 598 ct SUPERVISION & ENGINEERING OVERHEAD LINE. nv UNDERGROUND LINE LINE TRANSFORMERS PCB EXPENSE STREET LIGHTS METERS MISCELLANEOUS SUBTOTAL COPPER BASIN FOR THE MONTH ENDING 5/31/94 YEAR-TO-DATE 5/31/94 ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE (UNDER) (UNDER) OVER OVER 2,409 2,132 277 15,346 10,662 4,684 2,824 356 2,468 6,864 1,780 5,084 S24 moo? (228) 3,029 2,758 270 2,289 1,642 647 3,709 8,208 (4,499) 1,948 1,714 235 5,721 8,568 (2,847) 1,358 1,540 (182) 6,904 7,699 (794) 8,269 5,023 3,246 37,979 25,115 12,863 100 1,496 (1,396) 2,801 7,480 (4,680) 19,521 14,454 5,067 82,352 72,271 10,081 30,284 25,262 5,022 127,372 126,309 1,063 1,098 892 206 6,365 4,461 1,904 8,999 16,142 (7,143) 34,909 80,710 (45,800) 2,113 715 1,398 5,190 3,575 1,615 221 374 (153) 2,439 1,870 569 102 200 (98) 4,055 999 3,056 0 125 (125) 1,670 626 1,044: (443) 544 (986) (443) 2,718 (3,161) 0 417 (417) 0 2,083 (2,083) 12,090 19,408 (7,319) 54,186 97,042 (42,856) €T COPPE,. VALLEY ELECTRIC ASSOCIATION 1994 FINANCIAL STATEMENT FOR THE MONTH ENDING 5/31/94 YEAR-TO-DATE 5/31/94 ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE (UNDER) (UNDER) OVER OVER OPERATIONS VALDEZ 590 SUPERVISION & ENGINEERING 2,039 1,621 418 11,835 8,106 3,729 593 OVERHEAD LINE 5,772 5,587 185 20,603 27,935 (7,332) 594 . UNDERGROUND LINE . . 7,946 .. 8,161 wunsras(209)) 30,965 40,805 (9,840) 595 LINE TRANSFORMERS 0 218 (218) 455 1,092 (636) 595.1 PCB EXPENSE 189 81 108 336 406 (71) 596 STREET LIGHTS 231 201 29 837 1,007 (170) 596.1 CITY OF VALDEZ-STREET LIGHTS 104 0 104 3,099 Oo 3,099 597 METERS 0 470 (470) 0 23362 (2,352) 598 MISCELLANEOUS 0 2,500 (2,500) 0 12,500 (12,500) ' SUBTOTAL VALDEZ 16,281 18,841 (2,559) 68,130 94,203 (26,072) TOTAL DISTRIBUTION-MAINTENANCE 28,371 38,249 (9,878) 122,316 191,245 (68,929) 7. CONSUMER ACCOUNTS EXPENSE COPPER BASIN 902 METER READING 3,467 3,827 (359) 22,046 19,133 2,913 VALDEZ 902 METER READING 4,452 5,140 (688) 26,297 25,701 596 TOTAL CONSUMER ACCOUNTS EXPENSE 7,920 8,967 (1,047) 48,343 44,834 3,509 TOTAL OPERATIONS BUDGET 67,352 73,423 (6,071) 302,998 367,113 (64,115) COPPER VALLEY ELECTRIC ASSOCIATION 1994 FINANCIAL STATEMENT PRODUCTION 2) . POWER PRODUCTION EXPENSE 546.3 EMPLOYEE DEVELOPMENT . 547.1 FUEL ~~ oe oe GD ecto 548 GENERATION EXPENSES 549 MISCELLANEOUS 552 MAINTENANCE OF STRUCTURES 553 MAINTENANCE OF GENERATION EQUIP 553.11 MAINTENANCE OF ELECTRICAL EQUIP 548.13 R & M-UNIT 3 548.14 R & M-UNIT 4 548,15 R & M-UNIT 5 548.16 R & M-UNIT 6 548.17 R & M-UNIT 7 SUBTOTAL GLENNALLEN PLANT a FOR THE MONTH ENDING 5/31/94 YEAR-TO-DATE 5/31/94 ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE (UNDER) (UNDER) OVER OVER 3,072 4,112 (1,040) 12,254 20,559 (8,304) 22,573 114,410 _ ........(91,837) 564,892 697,982 (133,090) 34,572 27,727 6,846 147,667 138,633 9,035 4,893 6,460 (1,567) 28,785 32,298 (3,513) 11,047 10,470 576 56,027 52,352 3,675 11,074 10,470 601 56,962 52,352 4,610 0 833 (833) 0 4,167 (4,167) 7 1,083 (1,006) 462 5,417 (4,955) 56 1,167 (1,111) 1,660 5,833 (4,173) 28 3,750 (3,722) 1,450 18,750 (17,300) 188 3,583 (3,395) 16,552 17,917 (1,364) 242 4,917 (4,675) 21,809 24,583 (2,774) 87,819 188,982 (101,163) 908,520 1,070,841 (162,321) COPPL.. VALLEY ELECTRIC ASSOCIATION 1994 FINANCIAL STATEMENT VALDEZ DIESEL PLANT 546.3 547.2 ee 548... 549 552 553 553.11 $48.21 548.22 548.23 548.24 548.25 548.26 548.27 3. 555 557 ct EMPLOYEE DEVELOPMENT FUEL . GENERATION EXPENSES... MISCELLANEOUS MAINTENANCE OF STRUCTURES MAINTENANCE OF GENERATION EQUIP MAINTENANCE OF ELECTRICAL EQUIP R & M-UNIT 1 R & M-UNIT 2 R & M-UNIT 3 R & M-UNIT 4 R & M-UNIT 5 R & M-UNIT 6 SOLAR - UNIT 7 SUBTOTAL VALDEZ PLANT TOTAL POWER PRODUCTION PURCHASED POWER PURCHASES FROM PMC PRS AMORTIZATION TOTAL PURCHASED POWER TOTAL PRODUCTION BUDGET FOR THE MONTH ENDING 5/31/94 YEAR-TO-DATE 5/31/94 ACTUAL BUDGET VARIANCE ACTUAL BUDGET VARIANCE (UNDER) (UNDER) OVER OVER 1,770 2,255 (485) 3,896 11,275 (7,379) 8,614 0 8,614 151,543 209,602 (58,059) vena» 24,668 16,206 _ 8,462 92,998 81,030 11,968 3,331 3,555 (224) 18,965 17,773 1,192 5,535 5,120 415 32,022 25,601 6,421 5,542 5,120 422 32,022 25,601 6,421 1,735 833 901 2,741 4,167 (1,426) 472 1,250 (778) 946 6,250 (5,304) 82 1,667 (1,584) 584 8,333 (7,750) 82 750 (668) 851 3,750 (2,899) 1,031 3,250 (2,219) 1,742 16,250 (14,508) 847 3,250 (2,403) 2,295 16,250 (13,955) 21,199 1,500 19,699 23,672 7,500 16,172 4 1,000 (999) 189 5,000 (4,811) 74,910 45,756 29,154 364,466 438,382 (73,916) 162,729 234,738 (72,009) 1,272,986 1,509,223 (236,238) 342,669 222,304 120,365 909,701 790,364 119,337 474 502 (28) 2,371 2,511 (140) 343,144 222,806 120,337 912,072 792,875 119,196 505,872 457,544 48,328 2,185,057 2,302,098 (117,041) oT COPPER VALLEY ELECTRIC ASSOCIATION INC CAPITAL BUDGET 1994 FILENAME: \FR94\CAPBUD AccT GENERAL MANAGER/MEMBER SERVICES 391 MISC FURNITURE AND/OR EQUIPMENT 391.1 LASER JET PRINTER COMPUTER 392 FORD EXPLORER 394 GAUSS METERS (ONE PER DISTRICT) TOTAL GENERAL MGR/MEMBER SERVICES ADMINSTRATION 391 MISC. FURNITURE FAX MACHINE 391.1 COMPUTER LASER JET PRINTER NEW COMPUTER SYSTEM ‘TOTAL ADMINISTRATION NOTES EXPENDED 1994 OVER CAPITAL CAPITAL (UNDER) BUDGET BUDGET BUDGET 6/30/94 614 5,000 (4,386) 1,399 1,800 (401) 2,139 0 2139 25,111 25,000 111 0 5,000 (5,000) 29,263 36,800 TA S3t 0 2,500 (2,500) 0 3,700 (3,700) 3,699 3,000 699 1,699 1,800 (101) 0 0 0 5,398 11,000 (5,602) COPPER VALLEY ELECTRIC ASSOCIATION INC CAPITAL BUDGET 1994 FILENAME: \FR94\CAPBUD ACCT ENGINEERING 391 BINDING MACHINE TABLES & SHELVES (V) 391.1 NOTEBOOK PC (V) COMPUTER (V) PORTABLE BUBBLE JET PRINTER (V) TOTAL ENGINEERING OPERATIONS 361 ADDITION TO STORAGE BLDG (V) 390 HEADQUARTERS ROOF (CB) 392 VEHICLES (CB) REEL TRAILER (V) 394 MISC HAND TOOLS (CB/V) HYDRAULIC POLE PULLER (CB) CENTRAL ELECTROFUSION UNIT (CB) TOTAL OPERATIONS LT NOTES EXPENDED 1994 OVER CAPITAL CAPITAL (UNDER) BUDGET BUDGET BUDGET 6/30/94 0 350 (350) 889 800 89 3,018 3,500 (482) 4,249 3,000 1,249 480 600 (120) 8,636 8,250 386 0 35,000 (35,000) 9,610 15,000 (5,390) 23,417 25,000 (1,583) 0 12,000 (12,000) 299 19,000 (18,701) 0 1,200 (1,200) 0 2,700 (2,700) 33,326 109,900 (76,574) COPPER VALLEY ELECTRIC ASSOCIATION INC CAPITAL BUDGET 1994 FILENAME: \FR94\CAPBUD AccT PLANT 346 MANLIFT (GD) BORE SCOPE (GD & VD) ULTRASONIC CLEANER (GD & VD) PORTABLE ELECTRIC HOIST 391 FAX MACHINE (GD & VD) 397 PORTABLE RADIO (VD) TWO-WAY RADIO (GD) TOTAL PLANT TOTAL CAPITAL BUDGET ST NOTES EXPENDED 1994 OVER CAPITAL CAPITAL (UNDER) BUDGET BUDGET BUDGET 6/30/94 0 7,500 (7,500) 0 8,000 (8,000) 0 1,600 (1,600) 2,175 2,800 (625) 0 1,000 (1,000) 0 2,000 (2,000) 3,418 3,000 418 5,593 25,900 (20,307). 82,215 191,850 (109,635) 6T Z COPPER VALLEY ELECTRIC ASSOC, INC. 1994 DIRECTORS’ EXFENSES - 930 ACCOLNTS F]LENAME : \DATA\DIREX33 AS OF MAY 1994 GL, NO. DIRECTOR 930872 GIFFORD, JAMES 7 930832 GILSON. R.A. 930831 GUEST, STEVE 7 930811 HOLLAND, PALIL 930851 HIGHES, KEN 7 930882 ROGERS, BETTY T 930821 STELLING, JOHN 7 930861 SLINDER, ROBERT 930891 SUTTON, ELEANORE 930841 WILLIAMS, FRED TOTALS INELIRANCE DIRECTORS’ FEES 1,200 500 300 400 1,900 550 400 COURSES/ =EXPENSES/ FEES 245 485 MILEAGE 371 493 TOTAL COPPER VALLEY ELECTRIC ASSOCIATION INC PRODUCTION COST PER KWH FILENAME:\FR94\KWHCOST POWER PRODUCTION COST PRODUCTION EXPENSE (LINE 2 FORM 7) PRODUCTION INTEREST PRODUCTION DEPRECIATION PRODUCTION INS/TAXES TOTAL PRODUCTION COSTS GROSS DIESEL GENERATION (KWH) COST PER KWH UG FOR THE MONTH OF MAY, 1994 YTD - 1994 169,382 1,320,065 16,435 82,177 20,375 101,875 2,218 19,617 208,411 1,523,734 704,776 - 16,384,424 0.2957 0.0930 COPPER VALLEY FLECTRIC REVENUE REPORT DATE 08/31/94 1994 ACTUAL TO BUDGET FILENAME\REVENUE\REVRPT =— KILOWATT IIOUR SALES KILOWATT HIOUR SALES KILOWATT HOUR SALES CURRENT CURRENT OVER YEAR YEAR OVER 194 1993 OVER MONTH = MONTH = (UNDER) TODATE TODATE = (UNDER) YD YTD (UNDER) ACTUAL — BUDGET BUDGET ACTUAL BUDGET = — BUDGET. ACTUAL — ACTUAL 1993 1G RESIDENTIAL 358,449 315,518 43,331 2,251,103 2,090,115 160,988 2,251,103 2,107,019 IV RESIDENTIAL 518,065 925,236 aim 4,674,653 4,691,904 (17,251) 4,674,653 4,585,866 2G SMALLCOMM'L =— 331,943 336,661 4,718) 2,001,194 2,004,371 G17) 2,001,194 2,002,326 1,132) 2¥ SMALLCOMM'L §=— $84,936 422, 699 162,237 2,925,532 2,388,955 $66,577 2,925,532 2,081,289 844,243 3G LARGECOMM'L §=—765,626 651,405, 114,221 4,198,012 3,846,183 351,829 4,198,012 3,830,200 367,812 3V LARGECOMM'L = 1,236,019 1,716,327 (480,308) 7,426,113 7,926,336 (499,623) 7,426,713 1,282,186 (855,473) $G STREET LIGHTS 2,12 2,167 (55) 7,602 24 17,816 17,019 197 SV STREET LIGHTS 4,397 3,320 4m 35,566 32,129 3,437 35,566 33,100 2,466 6G PUBLIC BLDGS 36,450 33,463 2,987 211,909 205,362 6,547 211,909 205,281 6,628 6V PUBLIC BLDGS sans 44,565 10,160 310,513 284,321 26,192 310,513 297,082 13,431 4V PETRO STAR 1,068,790 1,161,719 (92,929) 5,159,400 5,658,695 (499,295) 5,159,400 4,352,087 807,313 TOTALS 5,262,112 5,513,080 (250,968) 29,212,411 29,115,973 96,438 29,212,411 27,793,455 1,418,956 REVENUES REVENUES REVENUES CURRENT CURRENT OVER YEAR YEAR OVER 1994 1993 OVER MONTH = MONTE = (UNDER) TODATE TODATE — (UNDER) YTD YTD (UNDER) ACTUAL — BUDGET BUDGET ACTUAL — BUDGET —- BUDGET ACTUAL = ACTUAL 1993 sc 1G RESIDENTIAL 13,176 65,426 7,150 448,449 418,093, 30,356 448449 413,504 34,945 1V— RESIDENTIAL 134,735 138,747 (4,012) 775,485 779,008 8,523) TISABS 752,518 22,967 2G. SMALLCOMML =— 65,728 60,063 5,665 349,060 355,544 33,516 384,800 4,260 2V SMALLCOMM'L =— 86,110 65,379 20,731 438,152 359,309 78,843 321,920 116,232 3G LARGECOMM'L = 109,469 97,477 11,992 $59,237 43,615 39,673 3V LARGECOMML =— 166,077 233,030 (66,953) 949,916 1,093,171 (103,255) 989,916 1,096,858 (106,942) SQ STREET LIGHTS 3 313 @0) 3.n02 3814 12) 3,802 3,654 an $V STREET LIGHTS 3 6st mm 6154 su 6,134 $028 526 60 PUDLIC BLDGS 6673 6,607 66 39,029 (390) 39,029 37,280 ns 6¥ —PUDLIC BLDGS 4,106 7,188 on 46,440 44,662 2,186 46,548 44,398 2,450 4V— PETRO STAR 103,028 117,941 (14,913) 516,994 $76,525 (59,531) 462,825, 54, TOTALS 754,428 793,022 (38,594) 4,256,741 4,234,848 21,893 4,256,741 4,086,534 170,207 4OF 4OF #OF 4 OF 4 OF #OF CONSUMERS CONSUMERS CONSUMERS CONSUMERS CONSUMERS CONSUMERS THISMTH LAST MT 125193 131192 nBV A190 scu 1G RESIDENTIAL 3 47 9st 903 “9 338 1V_— RESIDENTIAL 1397 1087 1380 432 1,350 1,307 2G SMALL COMM'L m 28 22 216 209 206 2V- SMALL COMM'L 260 258 251 2 ne m 3G LARGE COMM'L. “4 “ n “out " " 3V_ LARGE COMML ” ” 4s 60 39 56 SG STREET LIGHTS 1 s ’ 9 9 9 SV STREETLIGHTS 9 9 9 9 9 9 6G PUBLIC BLDGS M M u 2 30 30 6V PUBLIC BLDGS 29 29 2» 29 2» 29 4V PETROSTAR 1 1 ' 0 0 ° 2,954 2,942 2.992 2872 2,784 2.917 Chart1 Monthend Cash Balance CFC CHECKING 4,500,000 - 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 + eel pe-unr y6e-Aew pe-dy p6-eEIN 6-994 pe-uer €6-98q0 e6-unr e6-Aew e6-sdy €6-42W Y €6-G94 r e6-uer 76-990 Page 1 ae