ML18230A814

Exhibits (for Direct Testimony), Carolina Power & Light Company Before the North Carolina Utilities Commission, Docket E-2, Sub 297, Application for Increase in Electric Rates

ML18230A814
Person / Time
Site:	Harris
Issue date:	06/09/1977
From:	Carolina Power & Light Co
To:	Office of Nuclear Reactor Regulation, State of NC, Utilities Commission
References
Download: ML18230A814 (214)

Text

EXHl BITS

(For Direct Testimony)

IZED Doi'fiotN gP-Voe- YQ Contro) t'>lr a~ia'I Of6gygMH IlECUUi'fo'pggg Ig pig CAROLINA POWER & LIGHT COMPANY Before the NORTH CAROLINA UTILITIES COMMISSION Docket E-2, SUB 297 Application for!ncrease in Electric Rates

Carolina Power 6 Light Company N. C. Utilities Commission Docket No. E-2, Sub 297 EXHIBITS SHEARON HARRIS ROBERT R. NATHAN JULIUS BREITLING PAUL S. BRADSHAW FREDDY R. HORNE JAMES M. DAVIS, JR.

Filed December 1, 1976

I I

1975 Annual Report

Annual iVleeting The 1976 Annual Meeting of Shareholders will be held in Raleigh, iVorth Carolina, on May 19 at 11 A.M. A formal notice of the meeting together with a proxy statement and form of proxy will be mailed about April 14.

Highlights Percent 1975 1974 Change Operating Revenues $ 606,329,000 $ 460.977.000 32%

Net Income $ 101,622,000 $ 72.271.000 41 Number Shares of Common Stock Outstanding (Year End) 32,693,000 23,43 9.000 39 Earned per average Common Share outstanding $ 2.70 $ r 221 22 Cash Dividends Paid per Common Share $ 1.60 $ 1.60 Dividends Paid (Common and Preferred) $ 66,894,000 $ 56.326.000 19 Kilowatt-Hour Sales (Thousands)

• Excluding Nonterritorial Sales 24,057,000 23.607.000 Total Sales 24,118,000 24,076,000 System Capability Including Purchases (Kilowatts) 7,072,000 6 206 000 14 Maximum Service Area Hourly Load (Kilowatts) 5,060,000 4,771,000 6 ~

Total Utility Plant (including iVuclear Fuel) $ 2,559,346,000 $ 2,252,856.000 14 Construction Expenditures $ 300,659,000 $ 381,375.000 (21)

Customers (Year End) 661,000 648.000 2 Employees (Year End) 4,749 4,742

• Nonterritorial sales are sales to other electric utilities outside the Company service area.

Operating Revenue Dollar Source Cents Per Amount Dollar Residential customers $ '1 92,734,000 32/

Commercial customers 1'11,602,000 18 Industrial customers 1 67,798,000 28 Wholesale customers 99,990,000 17 Nonterritorial sales 7.485.000 '1 Other electric operating revenues 26,720,000 4

$ 606,329.000 100/

Use Fuel $ 232,722,000 38g Deferred fossil fuel expense. net 20,650.000 Purchased and interchange power. net '1 3,115.000 2 Taxes 9'1,606,000 15 Wages and employee benefits" 43.667,000 7 Depreciation 46.648,000 8 Maintenance (except employee wages) 23,604.000 4 Other operating expenses 23,451,000 4 Compensation to investors for use of their funds (mterest, 9g, preferred and pref-erence stock, zg; common stock, 7g) 110,866.000 18

$ 606.329.000 1008 "Does not include $ 22,882.000 of wages and employee benefits for Company employees that was charged to Construction and other accounts.

Contents Inside Front Cover 16 People This Annual Report is submitted Highlights of 1975 . 17 Statement of Income for information oF sharehnldors.

1 The 1975 Operating Revenue Dollar Statem'ent of Retained Earnings it is not intended for uso in 17 ronnortion with any salo or 2 The President's iviessage 18 Balance Sheet purrhas<. of. or any nffor or 4 Financial 20 Statement of Source and Use of soliritation oF offers to buy 7 Rates Financial Resources or sell. securities.

8 Construction 21 Notes to Financial Statements 9 Operations 26 Auditors'pinion 11 Ownership 27 Directors and Officers Carolina Power si Light Company.

12 Customers Transfer Agents and Registrars 336 Fayetteville Street.

14 Territory Served 28'tatistical Review Raleigh. N. C 27602 I

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The President's iVlessage "... industrial sales lagged behind 'l974...."

Territorial energy sales increased only 2 percent to 24.1 billion kilowatt-hours. Commercial and resi-dential'sales showed a healthy increase, but indus-trial sales lagged behind 1974 reflecting the general

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slowdown in the economy. During the fourth quarter some turnaround was experienced in the industrial sector.

Total operating revenues were $ 606 million, up My fellow shareholders: from $ 461 million in 1974. and net income rose from

$ 72.3 million to $ 101.6 million.

Our Company's financial picture showed im-provement in 1975, largely as the result of additional During 19/5 our Company spent $ 301 million for revenues produced from rate increases. construction and raised a net of $ 169 million of new Earnings per share of common stock were $ 2.70, up capital. We expect to spend $ 270 million on construc-from the severely depressed level of $ 2.21 in 1974. tion during 1976 and $ 826 million for the three years 1976-78.

The annual dividend per share of common remained at $ 1.60. Our energy forecasts indicate that as industrial activity returns to a more normal level, growth in energy usage on the CPZcL system will be at a 7.4 P ' ~~.

percent annual rate for the next ten years. That growth rate would compare with 9 percent for the 1966-75

~S period.

',l '~, s~ "We made substantial reductions in our construction We made substantial reductions in our construc-tion plan in 1974 and again in 1975. The latter reduc-tion represented a reluctant tailoring of the con-struction budget to the amount of capital we

>'@,.".i"~,;.;-.:j-.; ~could reasonably expect to attract. The present

-~""i ~ 'jfj+i',,.'ji"'" >~",...>> plan will support growth in demand at a

'~~ rate of only 6.5 percent during the next

--pz ten years, and may result in shortages

. of energy at intervals of peak de-

'. ';-" mand beginning in1981. Weretain

':<. some flexibilityfor moving up the

= construction of coal-burning plants if load grows as we ex-pect that it will and earnings improve sufficiently to permit us to obtain the ad-

<<'g ditional capital on a

~- ': . i;.. reasonable basis.

-'r Peak demand on the sys-1 tem rose 6.1 percent to 5,060,000 kilowatts in 1975.

We placed our second nu-clear generating facility in com-

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:i""..,'...- ~ ~

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i 'S mercial operation in November. It is the first unit of the Brunswick plant to

~ I go into operation. The second unit is scheduled for commercial service in 1977.

The units are expected to have capacities of 821,000 kilowatts each.

"... we produced 22 percent of our energy from authorized it to act in three-member panels. The case nuclear plants...." we filed in July 1975 was decided in February. That is During the year we produced 22 percent of our only seven months from filing to final disposition.

energy requirements in nuclear plants. 74 percent, in In December the North Carolina Commission coal-burning plants. 4 percent in hydro plants. and called for bids from independent firms to study the less than 1 percent by burning oil and natural gas. We operation of CPhL and three other utility companies.

are fortunate to have most of our generation from the This is a step we have publicly advocated. We are more plentiful fuels coal and uranium. In 1976 we confident that such a study will provide additional expect that 30 percent of total generation willbe from evidence for our customers that we are doing a good

, nuclear plants. job for them.

If it had been necessary for CPAL to produce the "... for the remainder of this century, the electric same amount of energy it obtained from nuclear industry must depend primarily on coal and plants during 1975 by burning coal or oil at the aver- uranium for fuel."

age cost for our system, the Company's fuel bill would Through participation in the Electric Power Re-have been increased $ 52 million. search Institute. our Company is involved in the ex-

"... 1975 was a good year for our customers...." ploration and development of alternative methods of In spite of the fact that electric bills have risen producing electricity. However. it is very clear that sharply, 1975 was a good year for our customers. too. for the remainder of this century the electric industry In 1960 the average CPhL electric bill for 5.067 must depend primarily on coal and uranium for fuel.

kilowatt-hours annually required a little less than 2 Other technologies simply will not be commercially percent of the average buying income of Carolina available within this period.

families. Income figures for 1975 are not available. A small but vocal minority continues to question But in 1975 the average CP8cL electric bill for 11.094 the safety of nuclear plants. The safety record of this kilowatt-hours required less thar; 3 percqnt of the industry is without parallel. Extensive studies indi-1974 average buying income. Thus, while energy cate that the risk involved with nuclear plants is min-usage more than doubled in the last 15 years, the imal and controllable so as to make them quite ac-share of buying income required to pay the bill in- ceptable. and particularly so when one considers the creased much slower. energy choices available to our society

! Our average revenue per kilowatt-hour for sales to residential customers continues to be one of the low- "This country needs a cohesive national energy pol-

'st for electric companies that operate along the east icy.

coast. This country needs a cohesive national energy In January of 1975 we received decisions in the policy. That policy should balance the need to protect retail rate cases that were filed in late 1973. Also in the environment with reasonable use of domestic re-january we began billing a higher base rate and fuel sources to supply energy. As it is now. some 50 com-charge to wholesale customers. With escalating costs. mittees and agencies of the federal government ad-we found it necessary to file during the summer for minister a fragmented energy program. Until this in-another retail rate increase. part of which we began efficient system is streamlined. there is little chance collecting on an interim basis. The details of these for developing a comprehensive program to resolve rate actions are presented elsewhere in this report. the national energy dilemma. There is need for much While our revenues are up and earnings have im- broader public understanding of energy issues.

proved and while tight cost controls are in effect in The year just ended was not an easy one for our every area of our operation. the Company's earnings have remained below what the regulatory commis- Company. We hope we have'turned the corner and that the days ahead will be better. I am proud of the sions have found to be just and reasonable because of 4.700 men and women with whom I work at CP8 L.

the escalating costs in every area of the Company's operation. They have shown commendable flexibility and re-sourcefulness in adapting to changing circumstances "We are very dependent upon reasonable and re- and in finding solutions to the varied problems that sponsive regulation ~..." face us.

We are very dependent upon reasonable and re- We also appreciate your continued support and sponsive regulation. The speed with which reg- confidence and pledge our best efforts in the chal-ulators act is very important. In 1975 the North lenging days ahead.

Carolina General Assembly expanded the State Respectfully submitted by order of our Board of Utilities Commission from five to seven members and Directors.

Sincerely yours, Chairman/President March 17, 1976

I

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Financial Net Income, Earnings and Divi'dends billed fuel costs which totaled $ 12.4 million at that Net income for 1975 was $ 101,622,000 as com- time ($ 7,942,000 at December 31, 1975) are being pared with $ 72,271,000 for 1974. Earnings per share collected over. approximately 12 months.

based on the'arger number of shares outstanding Purchased power costs decreased 10 percent in were $ 2.70 as compared with $ 2.21 in 1974. Div- 1975 as compared with an 85 percent increase in idends totaling $ 1.60 per share were paid on common 1974. The 1975 decrease reflects a 19 percent reduc-

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stock during the y'ear. tion in kilowatt-hours purchased because the Com-pany's own plants generated a greater proportion of Operating Revenues energy requirements.

.Operating revenues from sales of electricity Maintenance expense (excluding employee within the service area during 1975 increased $ 151.2 wages) increased $ 3.4 million in 1975 as compared million over 1974. Rate increases placed into effect with a decrease of $ 2 million in 1974. During the last since 1970 to recover increased costs resulted in in- quarter of 1975, the Company resumed normal

• creased revenues of $ 324,819.000 in 1975. maintenance schedules which were interrupted in

$ 180,760,000 in 1974 and $ 68,091.000 in 1973. 1974 when discretionary maintenance was deferred Sales of electric ene"gy, excluding nonterritorial because of reduc'ed revenues.

sales, increased about two percent in 1975. essen- Other operation and maintenance expenses in-tially the same percentage of growth as in 1974. The creased in 1975, reflecting the impact of inflation on small increase during the past two years reflected the the costs of goods and services. In 1975 the Company effects of energy conservation, relatively mild placed in service the initial unit at the Brunswick weather and reduced economic activity. Sales of nuclear power plant which, while having a signif-energy to industrial customers showed a 5 percent net icantly lower fuel cost than coal-fired plants. has a decrease in 1975 from the year earlier. In the fourth higher requirement for other operating expenses.

quarter. however, industrial sales reflected a 7 per- Depreciation expense increased $ 11.1 million in cent increase over the fourth quarter of 1974. 1975 as compared with $ 3.7 million in 1974. During 1975 the Company began depreciating the first unit of Operating Expenses its Brunswick nuclear plant. and effective October 1,,

Operating expenses increased 29 percent or 1975 adopted revised depreciation rates. The revised

$ 111.8 million in 1975 as compared with a 43 percent rates generally reflect shorter remaining service lives

.or $ 116 million increase in 1974. for electric plant in service, which increased depre-Cost of fuel for electric generation decreased 1 ciation expense by $ 2,538.000.

percent in 1975 after increasing 122 percent in 1974. Taxes other than income taxes reflect increased Total kilowatt-hours generated in fuel-burning plants state and local taxes on revenues and plant in service.

increased 2 percent in 1975 after decreasing 1 per- The increase in 1975 over 1974 was not as much as cent in 1974. Average costs of fossil fuels increased normal because in 1974 the Company refined its ac-only 1 percent in 1975 after increasing by 135 percent counting for North Carolina gross receipts taxes. This

. in 1974. Nuclear-fueled generation increased by 16 resulted in a nonrecurring increase of $ 3,991,000 in percent in 1975, reflecting the operation of unit two of expenses in 1974.

th'e Brunswick nuclear plant which was declared in Income tax expense increased to $ 45.2 million in commercial operation in November 1975. 1975 from $ 16.9 million in 1974. In 1975 the increase Deferred fuel cost accounting (begun in 1974 with resulted primarily from increased operating income the implementation of fossil fuel adjustment clauses), before income taxes.

resulted in a net charge against income of $ 20.7 mil- Tax expense for 1975 represented 15 cents of each lion in 1975 as compared with a net credit to income revenue dollar with 8 cents for state and local gov-in 1974 of $ 35 million. Deferred fuel costs to be billed ernments and 7 cents for federal taxes. This compares in future months reached $ 35 million at the end of with 13 cents, 9 cents and 4 cents, respectively, for 1974 and dropped to $ 14.4 million at the end of 1975 1974.

principally as a result of a significant drop in the unit cost of fossil fuel burned. Also. for North Carolina retail operations, the Company started billing for Other Income higher fuel costs on a current basis effective Septem- Other income increased $ 9.3 million in 1975 as ber 1, 1975; and the accumulated deferred and un- compared with a $ 22.5 million increase in 1974. The

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'nalysis of Results of Operations

• 1 Percent Percent Change Change from from 1975 1974 1974 1973 e (000's (000's omitted) omitted)

.. Op'crating 'revenues:

t":;, Total from electricity sales in service area $ 593,161 34% $ 441 913, 37

":"i: Noaterritoriai etectrtctty sales 7,485 (45) 13,499 (1) i<j

, ." '.; '.Miscellaneous electric 'revenues 5,683 2 ~ 5,565 22

, -.Total operating revenues 606,329 32 460,977 35 t:j

'perating expenses:

Fuel 232,722 (1) 235,842 122

'. - 'eferred fossil fuel expense (credit), net '20,650 159 (35,028)

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".," Purchased power 13,115 (10) 14,494 85

., "= Wages and employee benefit: 43,667 15 38,031 17

-,": '

Maintenance (except employee wages) 23,604 17 20,180 (9)

Other operation expenses 23,451 39 16,929 (1)

Depreciation 46,648 31 35,544 12 Taxes other than income taxes 46,436 14, 40,684 42 j, *'"'

'-'"'., Income tax expense 45,170 167 16.947 (20)

. Total operating expenses 495,463 29 383,623 43 t

. Operating income 1'I0,866 43 77,354 5

.Other income:

,

': -,'".'- 'llowance for funds used during construction 59,957 10 54,609 43

';;-;"'- Income taxes credit 19,734 23 16,068 53 1,020 31 776 97 Total other income 80,711 , 13 71,453 46 Gross income 191,577 29 148,807 21

'nterest charges 89,955 18 76,536 35

.;!<<Net income 101,622 41 72,271 10

<:,: Preferred and preference stock dividend requirements 25,752 25 20,672 59

'-.":Earnings for common stock $ 75,870 47 $ 51,599 (3)

,( Average common shares outstanding 28,I09 21 23,324 13

"+: Earnings per common share $ 2.70 22 $ 2.21 (14)

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'> Common dividends paid per share $ 1.60 $ 160 4 WV.

'cy~~5",See Statistical Review for additional data for the years 1965 and 1970 through 1915

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'; allowance for funds used during construction in-Electric Operating Revenues creased $ 5.3 million in 1975 as compared with a $ 16.5 and million increase in 1974. These increases reflect Net Income larger amounts of construction work in progress dur-ing the respective periods.

(Millions of Dollars) Income tax credits increased $ 3.7 million in 1975 as compared with a $ 5.6 million increase in 1974.

reflecting primarily the increases in tax-deductible interest charges applicable to the greater amount of funds invested in facilities under construction.

Financing and Construction Construction expenditures during 1975 totaled

$ 301 million. Of this, $ 244 million was for generating facilities. $ 23 million for transmission and $ 34 mil-lion for distribution and general facilities. In addi-tion. nuclear fuel expenditures for 1975 totaled $ 17.5 million.

During 1975 the Company completed the follow-ing financings: lanuary 1975, four million shares of common stock for net proceeds of $ 56 million and

$ 22.35 million principal amount of First Mortgage 461 Bonds, 11'is% Series. due 1994; in March, two million shares of $ 2.675 Series A Preference Stock for net proceeds of $ 47.9 million; in May. $ 100 million prin-cipal amount of First Mortgage Bonds. 11% Series.

due April 15 1984; and in November, five million

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shares of common stock for net proceeds of $ 86.075 million.

Proceeds from 1975 financings were used to retire 341 $ 131.6 million of short-term notes outstanding at the Eg beginning of the year.

In addition to financings..funds were provided 307 from the recovery of capital through depreciation and amortization totaling $ 57 million; from earnings re-tained and invested in the business of $ 30 million; and from deferred income taxes and investment tax 256 credits totaling $ 39 million.

The Company's construction program for 1976 through 1978 is estimated to require $ 826 million 205 with $ 270 million of this amount budgeted for 1976.

187 Tax Status of Common, Preferred and Preference 170 Dividends Under existing Internal Revenue Service regula-147 tions, two percent of dividends paid to common 135 shareholders during 1975 constituted a return of capi-122 tal for federal income tax purposes and is not taxable 102 as dividend income. All dividends paid in 1975 to holders of preferred and preference stock are taxable I 72 as dividend income.

Capitalization 38 The Company's capitalization at December 31, 23 25 27 25 1975 was $ 2.213,558.580, consisting of 49.9 percent 22 first mortgage bonds, 32.6 percent common equity.

15.2 percent preferred and preference stock and 2.3 1965 '66 '67 '68 '69 '70 '71 '72 '73 '74 '75 percent a six-year promissory note.

Price Ranges and Dividends Paid Per Share pany in October 1974. In August 1975, the commis-Common and Preferred Stock sion approved a revised fuel charge requested by the Company and allowed. the Company to collect the unamortized fuel expense account over a 12-month Common Stock period at the rate of .089 cents per kilowatt-hour.

N.Y. Stock Exchange Intervenors in these proceedings have appealed to the Reported Prices Court of Appeals.

Dividends South Carolina 1974 High Low Paid "A permanent retail rate increase of 18.3 percent First Quarter $ 23'/4 $ 20 $ .40 (rather than the 21 percent requested in October 1973)

Second Quarter 19'/~ 13~/a .40 was granted by the South Carolina Public Service Third Quarter 14'/4 11 I/a .40 Commission in January 1975. In the same month, the Fourth Quarter 14% '10~/2. .40 South Carolina Commission also approved a fossil .

197S fuel adjustment clause similar to the one approved in First Quarter 17 11 .40 North Carolina, which continues to be in effect in Second Quarter 18/a '13/a .40 South Carolina.

Third Quarter 18a/a 15% .40 Fourth Quarter 20'/4 16'/a .40 Wholesale An increase in wholesale rates and a fossil fuel

$ 5 P:eferred Stock adjustment clause for municipalities, private American Stock Exchange utilities, and'rural electric cooperatives were placed Reported Prices in effect by the Company in January 1975. Applica-tion for these increases was made to the Federal Dividends Power Commission in July 1974. Hearings on the case 1974 High Low Paid began in April 1975. but a final decision is pending.

First Quarter $ 66~h $ 60 $ 1.25 During 1975, these increases produced additional Second Quarter 61'/4 55 1.25 revenues of $ 50,732.000 ($ 19,978.000 from base rates Third Quarter 56'/4 50 1.25 and $ 30,754.000 from the fossil fuel adjustment Fourth Quarter 52'/a 46 1.25 charge), which are subject to refund.

1975 Increasing costs in almost every area of the Com-First Quarter 551/2 49 1.25 pany's operations required that the Company file for Second Quarter 53~/z 48 1.25, ~

additional rate relief in 1975.

Third Quarter 55'/a 49% 1.25 Fourth Quarter 59 50 1.25 North Carolina In July 1975, an application to increase retail rates Note: Other voting stocks are not actively traded. in North Carolina by approximately 22 percent was Regular quarterly dividends have been paid on filed by the company, and a 12 percent interim in-all preferred and preference stocks. crease was granted by the North Carolina Utilities Commission in August. Hearings on the general rate increase began in December 1975 and were con-cluded in January. In February. the commission ren-Rates dered its decision allowing an increase of 22 percent Rate increases placed into effect during 1974 and or $ 82 million annually which was the full amount 1975 produced additional revenues of $ 252.996,000 requested.

for the Company during 1975. In its order. the commission redesigned all resi-dential rates and included a basic facilities charge North Carolina regardless of the kilowatt-hours used. In addition. it A permanent retail rate increase of a'pproximately instituted a higher summer than winter rate for all-21.5 percent was approved by the North Carolina electric customers for June through September usage.

Utilities Commission in January 1975 with a minor The commission also modified the approved fuel modification of the residential rate schedule. The charge to reflect nuclear fuel costs and purchase and Company had filed for this increase in October 1973, interchange power. and rolled more of the current and most of it had been placed in effect by the Com- fuel costs into the basic rates.

South Carolina pany's wholesale rate filing and suspended the effec-The Company also made application in July 1975 tive date until May 1. 1976. However, the FPC order for a rate increase of 7.5 percent to South Carolina ~ required the Company to submit revised tariffs re-residential customers. This increase was to equalize flecting the elimination of tax normalization.

the residential rates in tVorth Carolina and South Carolina. In August 1975, the Company filed to in- Peak Pricing Hearings crease retail rates in South Carolina by about 23 per- As a result of the growing interest in new methods cent. An interim increase of 12 percent was placed in of rate design and a statutory requirement. a hearing effect in September. The South Carolina Public Ser- on peak load pricing. time-of-day metering, conserva-vice Commission has not yet set a hearing date, but tion, and load management began on December 16, effective March 1, 1976, the full increase was placed 1975 before the iVorth Carolina Utilities Commission.

into effect subject to refund pending final hearings. The Company filed affidavits setting forth its position and recommended that studies be made to determine Wholesale whether the benefits of new rate designs would out-In December 1975. the Federal Power Commission weigh the costs. In their testimony. CP8tL representa-directed CPgrL to modify the basis of its fuel charge to tives described the Company's efforts in load man-

'holesale customers effective January 1, 1976. The agement and its participation in national rate design charge must now be based on costs for fossil and studies being conducted by the Electric Power Re-nuclear fuel and purchased and interchange power. search Institute and the Edison Electric Institute.

On January 30, 1976, the Company filed with the Federal Power Commission to increase wholesale rates by approximately 34.5 percent. The increase, Construction based on anticipated 1976 sales, would produce addi-tional annual revenue of $ 33.7 million for the Com- iVew Facilities pany. In addition, the Company is seeking a tempo- On November 3. Unit iVo. 2 of the Brunswick plant rary fuel charge of .088 cents per kilowatt-hour (to be was placed into commercial operation at 790.000 applied over a period of up to 12 months) as a means kilowatts. During pre-operational testing, this unit of recovering $ 4.6 million in deferred fuel expenses. produced the first nuclear-generated electricity in On February 27, 1976 the FPC accepted the Com- iVorth Carolina on April 29. When the second unit is Common Stock Average Shares  :~".Dividends Paid per Share H Earnings per Share Outstanding

{in thousands) 11,289 1965 arm'<n wv ~ a.e.a~mawsx-.$ 1:16

'66 ~Yaga> rr'~~<+Aj1~~~",:Cia~~+ ~~ ~;1.28

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$ 1.80 11,488 1.88 11,584 '67 tC":ii+'ilslXfi>tlf%A'~~~.".AN~CCNC)WAi'iW1 34>.tMR5ÃL~WCZKM 1 9l 11,616 '68 ,(~$ ~'tkXA~M>> @%~~i~'IA~PrtPC!MWV;C~~% 1 38 1.98 11,920 '69 ".~~~pi a~~~~~~g;" ~~r.t~~~: il iii"1".42 2. 05 12,934 '70 wows."s~~s:.~alai;1;46 ems 1.56 14,776 '71 r>> i ~A:~:<A~ 1 46 1.97 17,814 '72 K~x aparxcxii .'vmt:a<1'7 /s 2.86 20.554 '73 c~~"t,'Ak.>%~~M~~><~Jj'M+1'~~'~~~mlv '~i",~ps 1 54 2.58 23,324 '74 Yi4'%co cz7~MAfxpk T @M ~ 2 ~ >K% ~~%'i~os J A'*,1;60 Ecccs~cÃ4$ ~ssexsosa 2.21 28,109 '75 i~vpB%2~~<~~~~a"~~~rppi;hx~ J' ~>k-1:60 2.70 I

COnStruCtiOn EXPenditureS in)~ted 1965 awacssaaaca~ 54 (Millions of Dollars)

'67 77

'69 ~97

'71 238

'73 75

~~IP~5CC5Z~ ~ A'~u.ri far .. 301 358 381

'76 270

,'77 263

'78 293

completed in 1977, the plant will represent an in- Expenditures for environmental protection vestment of approximately $ 793 million, including equipment at new and existing plants are expected to the expense for cooling towers and other modifica- be $ 34 million in 1976. A cooling tower at Roxboro ¹3 tions to the cooling system which are required under is scheduled for completion in 1976. Construction is present operating and discharge permits. underway at the Brunswick plant on two natural draft, salt water cooling towers, which are scheduled Construction Plan Revision to be operational by May 1978.

Revised energy forecasts. coupled with the un-availability of capital on, reasonable terms. caused the However, the Company has challenged that por-Company to make major revisions in construction tion of the Environmental Protection Agency (EPA) plans. The revisions involved all future generating plant discharge permit which requires construction units and were designed to reduce capital outlays of the towers for the Brunswick plant and has asked during the 1976-1979 time period. for a re-evaluation of that requirement so that further The current plan supports a growth rate of 6.5 studies of the present cooling system's impact on

percent'annually less than the 7.4 percent com- marine life in the Cape Fear estuary may be completed and evaluated. Because construction of towers may pounded ten-year growth rate which latest studies indicate will occur. Growth of more than 6.5 percent not be necessary. the Company feels that the re-annually may result in negative reserves in the early evaluation is clearly in tne public interest. A prehear-1980s. However, if earnings are sufficient to attract . ing conference before an EPA administrative judge more capital, the Company could accelerate the con- was held in january 1976; the full hearing is struction of one or more coal-fired plants. scheduled to begin in Raleigh on june 1.

Amendments to the Clean Air Act of 1970 were among the important issues proposed in Congress during 1975. Originally intended to provide more Proposed Construction time and flexibilityfor meeting the strict provisions In-Service of the 1970 law, the amendments now being consid-Unit Type Date ered by Congress would, instead. increase its restric-Brunswick ¹1 (821MW) Nuclear 4/77 tiveness. If adopted. the amendments would close a Roxboro ¹4 (720MW) Fossil 3/80 major portion of the nation's land to industrial de-Mayo ¹1 (720MW) Fossil 3/83 velopment, nearly double the cost of pollution con-Harris ¹1 (900MW) Nuclear 3/84 trol equipment for electric plants. greatly increase the Mayo ¹2 (720MW) Fossil 3/85 electric industry's capital requirements. and bring Harris ¹2 (900M W) Nuclear 3/86 about further large increases in the cost of electricity Undesignated (1150MW) Nuclear 3/87 for customers.

Harris ¹4 (900MW) Nuclear 3/88 Undesignated (1150MW) Nuclear 3/89 Harris ¹3 (900MW) Nuclear 3/90 Operations Total system energy requirements for 1975 were 25.8 billion kilowatt-hours. Of this total, about 0.1 Transmission Lines Authorized billion kilowatt-hours were sold to utilities outside the service area. System load factor was 58.1 percent Authorized transmission line construction for as compared to 60.2 percent in 1974. System capabil-1976 and following years includes 286 miles of 500,000-volt line, 650 miles of 230.000-volt line, and ity, including long-term contract purchases from 151 miles of 115,000-volt line.

other utilities, was 7,071,500 kilowatts.

Total generating capacity is 6,843,500 kilowatts.

Environmental Matters Of this, 56.7 percent is from seven steam electric CP8cL spent nearly $ 1S.3 million during 1975 for plants burning fossil fuels, 21.8 percent from the construction of environmental protection facilities. Robinson and Brunswick nuclear units, 18.4 percent Of this, $ 8 million went for air quality control equip- from 33 internal combustion turbine generators, and ment and $ 7.3 million for water quality control de- the remaining 3.1 percent from four hydroelectric vices. Projects completed during 197S included elec- plants.

trostatic precipitators at the Cape Fear, Lee. Sutton, Sources for the total energy produced were: 72.5 and Weatherspoon plants; modifications to the cir- percent coal, 22.4 percent nuclear. 3.8 percent hydro-culating water system at the Weatherspoon plant; and electric, .1 percent residual oil, .4 percent No. 2 oil, installation of mechanical cooling towers at the Cape and .8 percent natural gas. The Sutton plant was con-Fear plant. verted from residual oil to coal in January 1975. The

r Fuel Expense Total Service Area Utility Plant Peak Load All fuels as burned (Cents per ill)lion Htu) (.Billions of Dollars) (Thousands of Kiloivatts)

't a.~ Summer Following tIVinter 2.56 5,060 4,771

4,7'11 l 2.25 1.96 3,625," <<

3 171 45 45 1.24 2,445 I 1,943

.I I I

I 31 31 I <<

I 27 I

.66 ~

II) ~

.53 '<<j'

-. ~

I I

,I' I ll l~

- I I

s .i 1965 '67 '69 '71 '73 '75 1965 '67 '69 '71 '73 '75 1965 '67 '69 '71 '73 '75

1 I,

Company does not plan to use residual oil or gas as companies in the Southeastern Electric Reliability future fuel sources. Council (SERG). Membership includes all power Of the 7.5 million tons of coal burned during the suppliers with generating capacities of at least 25,000 year, 61.1 percent was received under long-term con- kilowatts. The Company is also one of seven electric tracts. The Company expects to receive approxi- utilities in the Virginia-Carolinas Reliability Group mately 81 percent of its 1976 coal requirements from (VACAR). Improving system reliability for member contractual agreements. companies is the principal purpose of both groups.

Peak Loads A new peak load for the system was reached on Long-term Coal Contract August 25 when customer demand was '5,060,000 kilowatts, 6.1 percent higher than the 1974 summer The Company is currently negotiating with Pick-peak. A winter peak load of 4,968,000 kilowatts was ands Mather & Company to develop a second deep reached on January 19, 1976. A new record for energy coal mine in Pike County, Kentucky. In 1974, an used in one day was set on January 19 when custom- agreement was made to develop the first mine from ers required 102,578,000 kilowatt-hours. The previ- which initial deliveries of coal are expected in 1976.

ous one-day record of 97.158.000 kilowatt-hours was CP&L expects to receive a total of 1.6 million tons per on August 26, 1975. year for 25 years from the two.mines. This is low sulfur coal which the Company expects will enable it Reliability Groups to meet air quality requirements without adding CP&L continues its participation as one of the 30 scrubbers to a new plant.

Ownership Distribution of Stock Ownership (Common, Preferred, and Preference Stock Combined)

Shareholders Shares Number Percent Number Percent The Carolinas ...... 39,510 43.12 8,607,230 22.90 Elsewhere ......... 52,118 56.88 28,972,820 77.10 Totals ........... 91,628 100.00 37,580,050 100.00 The total number of shares and shareholders in- The largest beneficial shareholder of record at the creased considerably during the year as a result of the end of 1975 had less than 2 percent of the shares issuance and sale of nine million shares of common outstanding.

stock and two million shares of preference stock.

At the end of the year. there were 69,199 holders of Dividend Reinvestment Service common stock, 15,418 holders of preferred stock, and Interest in the dividend reinvestment plan con-x 7,011 holders of preference stock, or a total of 91,628 shareholders compared with 67,688 at the end of, tinued to increase during 1975. About 4,100 shareholders are participating in the Dividend Rein-1974. The percentage of those living in the Carolinas vestment Plan initiated by the Company in 1973.

was 43.12 percent at the end of 1975. Under the plan, Company common. preferred, or In addition to shareholders indicated by these preference dividends may be automatically rein-statistics, several thousand shareholders own shares vested in additional shares of common stock.

which are held by banks, stockbrokers, investment The program is administered by iVorth Carolina

. trusts,.or nominees. National Bank and any questions regarding participa-At the 1975 annual meeting, more than 82 percent tion should be directed to NCNB, Dividend Rein-i of the total shares outstanding were represented in vestment Service, Post Office Box 120, Charlotte, person or by proxy. North Carolina 28201.

Customers Although total energy sales increased in 1975 by Commercial only 1.9 percent, energy consumption by all classes The Company's 94,556 commercial customers except industrial was up significantly. Sales within represented 14.3 percent of the total retail customers the service area were 24.1 billion kilowatt-hours and produced 18.4 percent of the operating revenues.

compared to 23.6 billion in 1974. Kilowatt-hour sales ~

In 1975, average annual usage by commercial cus-to residential customers increased 4.0 percent; sales tomers was 40.049 kilowatt-hours, an increase of to commercial customers increased 6.2 percent; sales 2,088 kilowatt-hours over 1974.

for resale increased 7.6 percent; and sales to indus-trial customers decreased 5.3 percent. Industrial For the year, CP&L's 3,318 industrial customers The number of retail customers increased 1.9 per- used 7.8 billion kilowatt-hours, representing a de-cent to 660,474. Electric service for resale was crease from 1974 of 5.3 percent. Industrial sales rep-supplied to 18 electric membership corporations, 24 resented 27.7 percent of the total Company operating municipalities, and 2 privately owned utilities. These revenues.

resale customers used 5.4 billion kilowatt-hours in Expenditures announced for new and expanded 1975, 22 percent of total Company sales. industries in the service area totaled $ 269,1 million, Of the total residential units served by CPtkL at substantially below the previous one-year high of year's end, 22.4 percent were all-electric. Similarly, $ 658.9 million established in 1974.

23.4 percent of the comrr, ercial and 11.2 percent of the It is estimated that 8,444 new job opportunities.

industrial customers had total electric facilities. with an annual payroll of $ 51 million, will be pro-vided by this increased industrial activity.

Customer Relations Residential In June, the Company launched "Project Com-

.Residential customers totaled 560,954, or 84.9 municate," an intensive program of customer contact percent of the Company's total customers, and ac- to help explain rising electric costs, counsel custom-counted for 31.8 percent of 1975 operating revenues. ers on efficient use of electricity, and answer other Average annual coitsumption per customer was questions about the Company and its operations. The 11,094 kilowatt-hours, up from 10,861 in 1974. The object of the program, designed as an on-going effort average annual residential bill of $ 347.54 was less to supplement the Company's regular customer than 3 percent of the average family buying income communications activities, is greater public under-for the Carolinas as reported by'Sales iVlanagement standing. Over 30,000 customer-households were ivfagazine's Survey of Buying Power. contacted during the latter half of the year.

Average Price of Electricity Paid by Residential Customers (Twelve Months Ending December 31. 1975 and 1974)

Cents Per Cents Per Kilowatt-Hour Place Kilowatt-Hour Place

.

1975 8.27 5 44

'.70 1974 5.50 New York, N. Y.

Newark. N. l.

1975 3.53 3.37

'1974 2.89 2.63 Miami. Fla.

Fairmont. W. Va.

5.36 5.01 4.71

'.805.06 4.02 Boston. Mass.

Philadelphia. Pa.

Hartford. Conn.

3.36 3.25 2.89 2 48 Syracuse. N. Y.

Atlanta. Ga.

Cincinnati, Ohio

'*.'.56 4.18 New Haven. Conn.

3.18 2.86 4.55, 3.78 Pittsburgh. Pa. 3.13 2.64 4.25 3.93 Baltimore. Md.

4.09 3.42 St. Petersburg. Fla.

3.89 3.67 Washington. D. C. 3.04 2.98 lackson. Miss.

. - ..* ~" '. ', 3.89.

""c 3.07 Richmond. Va. 3.00 2.61 Charlotte, N. C.

3.88 3.67 Cleveland: Ohio 3.00 2.37 Pensacola. Fla.

3.69 3.06 Columbia. S. C. 2.97 2.55 Roanoke. Va.

3.61 3.35 Savannah. Ga. 2.97 2.44 Birmingham. Ala.

3.59 2.74 Tampa, Fla. 2.89 2.53 Gulfport. Miss.

.-".'" (Prices shown are averages, for the systems of companies which serve these cities)

Average Annual Total-Electric Energy Sales Kilowatt-Hour Residential By Classes Sales'to Units Residential within service area (Cumulative Total) (Millionsof Kilowatt4Iours)

Customers

...'esidential

'1 1,276 Commercial 11,094 '123,233

~

I Industrial

"

117,305 'Other 24.057 Totat 23,607 cI 10 ,205 i 23,229 ~

, ~

106,525 9,027 It, 18,861 I i .I l Il ii 7,454 ~

l' 15,617 6,620 71,879 ~

~

it n

12,140 i .':.

t tl tt 48,442

~ 0 9,707:I

, ~

'I 1

31,584 p P)3)

.!ih] j

"

19,046 t II I. ~

t Ill

)!le ')

\'i if 1965 '67 '69 '71 '73 '75 1965 '67 '69 '71 '73 '75 1965 '67 '69 '71 '73 '75

r Territory Served A

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1 ~ $ ~,

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At'the end of 1975. CP8 L was providing electric service to more than 660,500 customers in an area oF

30,000 square miles almost half of North Carolina and about one-fourth of South Carolina. Total popu-lation of the territory is estimated to be about 2.8 million. This territory is comparable in size to the combined areas of Connecticut, iVIassachusetts, Rhode Island, New Jersey and iNew Hampshire. It includes part of the ivfountain and Piedmont regions, but is largely in the Coastal Plains section. Service to customers is provided by more than 4,700 employees through 5 division, 10 district and 40 area offices.

I 1

I

I

~

r" '

~ ~

~~ Henderson 10 Goldsboro u

'~-"'. <-~~*~~~~ " Q>>e Raleigh r

r Sanford Jacksonville

' e >>Sy- M~

'.

, te

'Southern Pines

't 2 9

~< PA'."+P'Itttlmtngten el PP ~ 14 5

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~Florence

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~, r Sumter C

Legend

1. Asheville Electric Plant 9. 4Veatherspoon Electric Plant

2. Blewett Hydroelectric Plant 10. Roxboro Electric Plant

3. Cape Fear Electric Plant 11. Brunswick Nuclear Plant

4. Lee Electric Plant 12. Marshall Hydroelectric Plant

5. Robinson Electric Plant 13. Harris Nuclear Site

6. Sutton Electric Plant 14. Darlington Plant

7. Tillery Hydroelectric Plant

8. 4Valters Hydroelectric Plant ~.CP8tL District Offices

People Directors Named iVIrs. Harper, owner of the Stevens Agency, insur-In March, the board of directors elected Charles W. ance, Southport, N.C., is a graduate of Greensboro Coker, Jr. and Mrs. Margaret Harper to the board. College. She is secretary-treasurer of the North Mr. Coker, president of Sonoco Products Com- Carolina Press Association, a trustee of the University pany, Hartsville, S.C., is a graduate of Princeton Uni- of North Carolina at Chapel Hill, North Carolina Blue versity and Harvard Business School. He is a director Cross and Blue Shield, and a member of the board of ofiNCNB Corporation, First Federal Savings 8c Loan of governors of the Research Triangle Institute. She is a Hartsville, the National Association of Manufactur- past pr'esident of the North Carolina Federation of ers, and serves on the executive committee of the Women's Clubs and of the North Carolina Council of board of the American Paper Institute. Women's Organizations.

PPh h+

• 'g iver. Cokcr Management Changes Patrick W. Howe was named manager of.the spe-cial services department succeeding Menscer. A Darrell V. Menscer. vice president. was named to graduate in chemistry from The Citadel, Howe has head a new department of corporate performance more than 20 years'xperience in the nuclear energy analysis. A graduate in electrical engineering from field. Prior to joining CP8cL in 1971, he was chief of North Carolina State University. Menscer joined the the site, environmental, and radiological safety group Company in 1960. He served in various engineering in the AEC's division of reactor licensing.

positions until he was named budget director in 1968. Paul S. Bradshaw was named an assistant trea-He was promoted to manager of the special services surer of the Company. A graduate of Southeastern department of the engineering, construction, and University, Washington, D.C., Bradshaw joined CP8cL operating group in 1971 and elected a vice president in 1962. He was manager of budget and statistics at in 1973. the time of his promotion.

Employee Relations an association of electric companies located in the The Company ended 1975 with 4,749 employees, Southeast. The Company had a frequency rate of 1.28 substantially the same number as at the end of 1974. lost-time injuries for each million man-hours worked During the year, more than 1,500 employees from as compared to an average of 4.52 lost-time injuries all levels of the organization participated in 14 differ- per million man-hours worked for the 25 members of ent courses and seminars designed to upgrade job the exchange. CP8cL also placed first, for the second performance. year in a row, in the Southeastern Electric Exchange For the third consecutive year. CP8cL was the standing for vehicle safety with a frequency rate of safest utility in the Southeastern Electric Exchange, 5.16 accidents per million miles driven.

Statement of Income For the Years Ended December 31, 1975 and 1974 1975 1974 Operating Revenues Electric (Notes 5 and 6) ........... ~..... $ 606,329,122 $ 460,977,024 Operating Expenses:

Fuel for electric generation . 232,722,278 235,842,050 Deferred fossil fuel expense (credit) (Notes 1 and 5).......... 20,650,131 (35,028,046)

Purchased electric power 13,114,681 14,493,620 t

'=

Other operation expenses . 57,035.576 46,549,415 Maintenance 33,685,947 28,591,432

.'epreciation 46,648,000 35,544,206 Taxes other than on income... '6436,686 40,683,529 Income tax expense (Note 4) 45,169,792 16,946,789 Total operating expenses .. 495,463,091 383.622,995 Operating Income:... ~... 110,866,03'1 77,354,029 Other Income:

Allowance for funds used during construction (Note 7) . . .. 59.956,830 54,608,879

Income taxes credit (Note 4)

~ ~

19,733,336 16,067,820 Other. net 1,020,787 775,762 Total other income 809710.953 71.452,461 Gross Income 191,576,984 148,806,490 Interest Charges:

Long-term debt . 85,740,402 69,877,700

.Other . 4,214,861 6.658.234 Total interest charges 89,955,263 76,535,934 Net Income . 101.621,72'1 72.270,556 Preferred and Preference Stock Dividend Requirements ....... 25,751,863 20,672.481 Earnings for Common Stock . $ 75,869,858 $ 51.598,075 Average Common Shares Outstanding . 28,'109.092 23.324.111 Earnings per Common Share 27

$ 2.70 $ 2.21

'

Statement of Retained Earnings For the Years Ended December 31, 1975 and 1974 i

I

" Balance at Beginning of Year . $ 128,762,726 $ 116,063,040

-'et Income 101,62'1,721 72.270,556 Total . 230,384,447 '1 88.333,596

'.:: Deduct:

Cash dividends declared:

$ 5 preferred stock 1,186,295 '1,186.295 Serial preferred'tock:

$ 4.20 series 420,000 420,000

$ 5.44 series 1,360,000 1,360,000

$ 9.10 series'... 2,730,009 2,730.008

$ 7.95 series,. 2,782,525 2,782,523

$ 7.72 series. 3,860,000 3,860,000

$ 8.48 series. 5,512,000 5,986,655 Preferred stock.A, $ 7.45 series 3,725,000 3,725.000

'~<'- '$2.675 preference stock, series A . 5,513,534

"

~"~<.y,- Common stock (at annual rate of $ 1.60 a share in i>,qf ~';..

. >:K=:.'974 and 1975) 46,172,859 37.374.994 Total cash dividends declared 73,262,222 59,425.475

-."'~, Capital stock expense 445,797 145.395 Total deductions 73,708,019 59,570,870

~pIBalance at.End of Year $ 156,676,428 $ 128,762,726

~See notes to financial statements.

jp4"."4; ~

g:r,"

Balance Sheet December 31, 1975 and 1974 ASSETS 1975 1974

.

Electric Utility Plant:

Electric utility plant other than nuclear fuel:

In service . $ 1,837,332,579 $ 1,364,183.273 Held for future use 8,705,994 7.542.840 Construction work in progress . 643,068,549 826,012.064 Total . 2,489,107,122 2,197,738.177 Less accumulated depreciation . 296,425,899 256,659,461 Net 2,192,681,223 1,941,076.716 Nuclear fuel . 70,239,100 55.117.915 Less accumulated amortization . 18,507,102 1'l,466,631 Net 51,73'1,998 43,65'1.284 Electric'utility plant, net 2,244.4'13,221 1,984,730.000 Other Property and Investments, 2,026,358 3,828,783 Current Assets:

Cash 9)354,350 9,517.174 Temporary cash investments 13,496,583 Accounts receivable, net ('1974 includes

$ 14,942,360 of refundable income taxes) ........ ~.....

~ . 31,484,653 45.619.704 Deferred fossil fuel inventory costs (Notes 1 and 5) ........ 14,377,915 35,028.046 Materials and supplies:

Fuel . 60,008,940 84,244.486 Other 18,093,951 13,434.110 Prepayments, etc.. '1,472,295 'l,787.436 Total current assets 148,288,687 '89,630.956 Deferred Debits:

Unamortized debt expense 1,518,038 1,253.151 Other. ~ 5,775,927 5.624,404 Total deferred debits . 7,293,965 6,877,555 Total $ 2,402,022,231 $ 2,'1 85,067.294 See notes to financial statements.

rolina Power & Light Company I

BILITIES 1975 1974 pital Stock and Retained Earnings (Note 2):

referred stock $ 288,118,400 $ 288,118.400 reference stock 47,900,000 ommon stock . 565,609,691 419,701.904 Retained earnings . 156,676,428 128,762.726 Total capital stock and retained earnings . 1,058,304,519 836,583,030 ng-Term Debt (excluding current maturities):

rincipal amounts (Note 3) . 1,157,234,359 1.036.9'14,3'1 0 ess unamortized discount and premium, net 3.980,298 2.819,037

. Long-term debt, net 1,'l53,254,061 1.034,095,273 rrent Liabilities:

Long-term debt due within one year (iVote 3) 2,000,000 otes payable . 78,385 131,657,046 ccounts payable . 28,710,977 59,412.1 83 ustomers'eposits 3,753,970 2,818,650 Taxes accrued . 9,380,705 11,276.899 urrent portion of deferred income taxes (Note 4) ......... 3,285,558 13.577.543 nterest accrued 20,932,577 19.32 1.270 Dividends declared .

25,608,792 19,240,143 ther 2,114,170 1.823.299 Total current liabilities 95,865,134 259.127,033 erred Credits:

Investment tax credits (Note 1) . 'l8,787,931 4.514.126 ustomers'dvances for construction 202,420 125,873 ther 459,170 115.406

, Total deferred credits . 19,449,521 4,755,405 erve for Injuries and Damages 794,184 724,920 cumulated Deferred Income-Taxes (Note 4) .............. 74,354,812 49,78'1.633 Commitments and Contingencies (Note 5)

Total . $ 2,402,022,231 $ 2,'1 85.067.294 e notes to financial statements.

Statement of Source and Use of Financial Resources

, For the Years Ended December 31, 1975 and 1974

.

1975 1974 r Source of Financial Resources:

Current resources provided from operations:

Net income $ 101,621)721 $ 72,270.S56 Items not requiring (providing) current resources:

Depreciation and amortization . 57,242>327 45,391,668 Noncurrent deferred income taxes, net 24,573,179 11,187,984 Investment tax credit adjustments, net 14,273,805 (6,241,299)

Allowance for funds used during construction .......... (59,956,830) (54,608,879)

Total current resources provided from operations 137,754,202 68,000,030

• Other resources provided:

• ~Additions to plant accounts representing capitalization of the net cost of funds used during construction............ 59,956,830 54,608,879 Proceeds from assignment to lessor of internal combustion turbine generators . 44,455,470 Proceeds from sale and leaseback of nuclear fuel .......... ~... 47,593,386 Miscellaneous, net . 7,096,477 3,994,354 Total resources provided from operations and other ..... 204,807,509 . 218,652,119 Financings:

Sale of:

First mortgage bonds. 120,742,943 150,978,924 Preferre'd stock . 64,230,667 Preference stock 47,744,042 Common stock 145,617,948 3,380,868 Increase (decrease) in short-term notes payable

~

less temporary cash investments (145,075,244) 103,301,247 <<j

~

Total resources provided from financings .. 169,029,689 321,891,706 TOTAL . $ 373,837,198 $ 540,543,825 j

Use of Financial Resources:

Gross property additions, excluding nuclear fuel* ........ ... $ 305,552,826 $ 382,602,011 Nuclear fuel additions* 17,515,265 39,939,431 Dividends for the year 71,9241721 58,047,475 'I Net increase (decrease) in working capital, excluding temporary cash investments, long-term debt due within one year, and short-term notes payable .. .. ~...

~ (21,155,614) 59,954,908 TOTAL . $ 373,837,198 K'540,543,825 Increase (decrease) in working capital, excluding temporary cash investments, long-term debt due within one year, and short-term notes payable, by components:

Accounts receivable ~ $ (14,135,051) $ 19,868,712 Deferred fossil fuel inventory costs . (20,650,131) 35,028,046 p-Material and supplies (principally fuel) . (19,575,705) 69,334,972 Accounts payable 30,701,206 (40,310,318)

Taxes accrued 1,896,194 (7,693,279)

Current portion of deferred income taxes . 10,291,985 (13,577,543)

Interest and dividends payable (7,979,956) F'6,076,738)

Other, net (1,704,156) 3.381,056 Net increase (decrease) in working capital, excluding temporary cash investments, long-term debt due within one year. and short-term notes payable ...... $ (21,155,614) $ 59,954,908

• Includes amounts capitalized as allowance for funds used during construction.

See notes to financial'statements.

~ ~

Notes to Financial Statements

1.

SUMMARY

OF SIGNIFICANT ACCOUNTING Deferred Fossil Fuel Inventory Costs. In 1974, pur-POLICIES suant to state regulatory commission orders, and in System of Accounts. The accounting records of the January 1975, pursuant to Federal Power Commission Company are maintained in accordance with uniform order, the Company put into effect automatic fossil systems of accounts prescribed by the Federal Power fuel adjustment clauses to recover increased fuel

~ Commission and the regulatory commissions of costs. The provisions of the clauses result in a time lag between the date increased fuel cost is incurred and North Carolina and South Carolina.

the date such cost is billed to customers. To properly Electric UtilityPlant. Electric utilityplant is stated match increased fuel costs with the related revenues, at original cost. The cost of additions, including re- the Company defers, except for North Carolina retail I placements of units of property and betterments, is charged to utility plant. The Company includes in R such additions an allowance for funds used during operations, increased fuel cost when incurred and expenses it in the month the related revenue is billed.

Beginning September 1, 1975 for North Carolina re-tail operations, the fossil fuel adjustment clause was construction (8% for 1975 and 1974). Maintenance 1

l and repairs of property and replacements and renew-als of items determined to be less than units of prop-erty are charged to maintenance expense. The cost of units of property replaced or renewed plus removal replaced by an "approved fuel charge" adjustment to basic rates (which results in billing increased fuel costs on a current basis) and the Company was au-thorized to recover the deferred fossil fuel inventory costs accumulated at August 31. 1975 by a temporary

'g costs, less salvage, is charged to accumulated depre-rate surcharge over an approximate twelve-month g.elation. Utilityplant is subject to the lien of the Com- period, with matching amortization of the deferred pany's mortgage.

costs (see Note 5). Therefore, as a result of deferred Allowance for Funds Used During Construction. In fuel cost accounting, operating expenses include a

~ accordance with the uniform systems of accounts charge of $ 20,650,131 in 1975 and a credit of

$ 35,028,046 in 1974 and deferred fossil fuel inven-

, prescribed by regulatory authorities, an allowance for funds used during construction is included in con- tory costs on the balance sheet decreased $ 20,650,131 struction work in progress and credited to income. in 1975 and increased $ 35,028,046 in 1974, represent-

.recognizing that funds used for construction were ing the normalization of such costs. Related deferred provided by borrowings, preferred stock, and com- income taxes have been recorded (see Note 4) and are reflected in income tax expense; and the accumulated

~

mon equity. This accounting practice results in the

~

inclusion in utility plant in service of amounts con- deferred tax liability is reflected in Current Portion of sidered by regulatory authorities as an appropriate Deferred Income Taxes on the balance sheet.

cost for the purpose of establishing rates for utility charges to customers over the service lives of the property. Income Taxes. Deferred income tax provisions are recorded only to the extent such amounts are cur-Depreciation and Amortization. Depreciation of rently allowed for rate-making purposes. In com-utility plant, other than nuclear fuel. for financial pliance with regulatory accounting. income taxes are reporting purposes is computed on the straight-line allocated between Operating Income and Other In-method based on estimated useful lives and charged come, principally with respect to interest charges re-principally to depreciation expense. Depreciation lated to construction work in progress. Deferred in-provisions as a percent of average depreciable prop- come taxes are provided relating to the deduction for

< erty other than nuclear fuel approximated 3.0% in income tax purposes of a coal mining subsidiary's I

-'975 and 2.8% in 1974. Effective as of October 1, 1975 the Company adopted revised depreciation rates gen-s erally reflectin shorter estimated useful lives for util-development costs and such taxes are charged to Other Income. See Note 4 with respect to certain other income tax information.

, ity plant. which increased the provision for deprecia-

'ion by $ 2,538,000 in 1975. Amortization of nuclear

~

fuel charged to fuel expense (1975, $ 9,190,000; 1974,

~ ~ ~ Investment Tax Credits. Investment tax credits

..:, $ 8,757,000) is computed on the unit-of-production generated and utilized after 1971 have been deferred

". method. and are being amortized over the service lives of the property; substantially all credits prior to 1972 were

~: rendered

'Revenues. Customers meters are read and bills are on a cycle basis. Revenues are recorded deferred for amortization over five-year periods. At December 31, 1975 the Company had generated but when billed, as is the customary practice in the indus- not utilized investment tax credits totaling

$ 14,600,000.

Preferred Dividends. Preferred stock dividends de- income is not material. At January 1, 1975, the date of clared and charged to retained earnings include the latest actuarial valuation, the unfunded prior ser-amounts applicable to the first quarter of the follow- vice cost was approximately $ 24 million and the ac-ing year, except for the Preferred Stock A. $ 7.45 Series tuarially computed value of vested benefits exceeded which dividends are wholly applicable to the year in assets of the plan by approximately $ 22 million.

which declared.

Other Policies. At December 31, 1975 the Company Retirement Plan. The Company has a non- had available lines of credit with various banks and contributory retirement plan for all regular full-time maintains account balances in connection with cer-employees and is funding the costs accrued under the tain of such lines. Other property and investments are plan. Retirement plan costs for 1975 and 1974 were stated principally at cost, less accumulated deprecia-approximately $ 3,526,000 and $ 2,421,000, respec- tion where applicable, except for the investment in its tively. In 1975. the Company amended the plan by coal mining subsidiary which is accounted for on the changing, among other things, vesting provisions to equity basis. Temporary cash investments are stated conform with the requirements of the Employee Re- at cost, approximating market value. Materials and tirement Income Security Act of 1974. the interest supplies inventories are stated at average cost. The assumption from 4'/z% to 5%, and the amortization of Company maintains an allowance for doubtful ac-unfunded prior servic. cost over a period of twenty counts receivable (1975, $ 580,237; 1974, $ 427.876).

years from January 1, 1975 instead of from January 1. Bond premium, discount and expense are amortized

, 1974. The effect of these changes on periodic net over the life of the related debt.

2. CAPITAL STOCK 1975 1974 Preferred Stock. without par value. cumulative:

l

?

$ 5 (authorized. 300.000 shares; outstanding. 237.259 shares) . $ 24.375.900 $ 24.375.900

'L , ~ 22 Serial (authorized. 10.000.000 shares):

$ 4.20 Series (outstanding. 100.000 shares) . 10.000.000 10.000.000

$ 5.44 Series (outstanding. 250.000 shares) 25.000.000 25,000.000

$ 9.10 Series (outstanding. 300.000 shares) 30,000.000 30.000.000

$ 7.95 Series (outstanding. 350.000 shares) 35,000.000 35.000.000

$ 7.72 Series (outstanding. 500.000 shares) 49.425.000 49A25.000

$ 8AB Series (outstanding. 650.000 shares) 64.317.500 64.317.500

~ Preferred Stock A (authorized. 5.000.000 shares)

$ 7.45 Series (outstanding. 500.000 shares) 50.000.000 50.000.000 Total $ 288.118AOO $ 288.118A00 Preference Stock. without par value. cumulative (authorized. 10.000,000 shares)

$ 2.675 Series A (outstanding. 2.000.000 shares) S 47.900.000 Common Stock. without par value (authorized. 60.000.000 shares):

Outstanding (1975. 32.692.791 shares; 1974. 23.438.844 shares) . $ 565.609.691 $ 419.458.687

Subscribed but not issued 19.875 shares ...................... 243.217 Total $ 565.609.691 $ 419.701.904 Authorized Preference Stock was increased from creased $ 47,900,000 in 1975 from the sale of 2,000.000 to 10,000.000 shares in May 1975. 2,000,000 shares of such securities in public offer-ings.

Common stock outstanding increased $ 146,-

151,004 in 1975 and $ 3.'l37,651 in 1974 from the sale The preferred stock is callable. in whole or in part.

of 9,000,000 shares in public offerings and the sale of at redemption prices ranging from $ 102 to $ 115 a 253,947 shares in 1975 and 205,081 shares in 1974 share plus accumulated dividends. The Preferred under the Company's Stock Purchase-Savings Prog- Stock A, $ 7.45 Series, has a sinking fund requirement, ram for Employees. At December 31, 1975, 711,513 commencing in 1984, to redeem 20,000 shares annu-shares of unissued common stock were reserved for ally at $ 100 per share plus accumulated dividends. In issuance under the Program. The preferred stock ac- the event of liquidation, the preferred stock is entitled count increased $ 64,317.500 in 1974 from the sale of to $ 100 a share plus accumulated dividends. The 650,000 shares and the preference stock account in- $ 2.675 Preference Stock Series A is presently callable

in whole or in part at $ 27.68 per share plus accumu- 7%% Series. due 2003 ..................... 100.000.000 lated dividends, unless refunding is involved in at/s% Series. due 2003 . 100.000.000 which case there are substantial limitations on re- 9%% Series. due 2004 ..................... 125.000.000 Total . 1.109.030.000 demption until April 1, 1980; and in the event of liquidation is entitled to $ 25 a share plus accumu- SLx-year note payable tn a bank. due Iuly 31. 1978. at a fluctuating II I lated dividends'in preference only to the common stock.

The Company's charter and the first mortgage bond rate'(8.33/o at December 31. 1975) related to the bank's prime rate.............

Miscellaneous promissory notes (1974. $ 234.310) . 204.359 IIindenture as amended contain provisions limiting Total long.ter'm debt. including

'

payments of cash dividends on common stock under current maturities ................. 1.159.234.359 certain circumstances. At December 31. 1975. none of Less long-term debt due within one year-the retained earnings was restricted under these pro-11%% Series. due 1994 .................... 2.000.000 Total long. term debt excluding current visions. maturities at December 31. 1975....$ 1.157.234.359 1

3. LONG-TERiVf DEBT PRINCIPAL AiVIOUNTS Issued in 1975 First mortgage bonds: "$22.350.000 issued in 1975 3t/s /o Series. due 1979....................$ 20.100.000 3t/<% Series. due 1979 .................... 43.930.000 The bond'indenture. as amended. contains re-2~/e% Series. due 1981 .................... 15.000.000 3t/x% Series. due 1982 ................... 20.000.000 quirements that additional property be certified or 1 1'/o Series. due 1984 ................... 100.000.000' that specified amounts in cash and/or principal 4%% Series. due 1988 .................... 20.000.000 amount of bonds be delivered annually to the Trustee 4t/s% Series. due 1990 .................... 25.000.000 as an improvement fund. Current liabilities do not 4'/z% Series. due 1991 .................... 25.000.000 4th% Series. due 1994 ...........:........ 30.000.000 include tne current improvement fund requirements due 1994 .................... (approximately $ 6.700.000 at December 31. 1975) 1g 11%% Series.

due 1996 ....................

50.000.000*'t/s%

Series. 30.000.000 since the Company meets such requirements by the 6'/s% Series. due 1997 .................... 40.000.000 certification of additional property. 23 at/s% Series. due 1998 .................... 40.000.000 8%% Series. due 2000 .................... 40.000.000 Bonds of the 11i/e% Series. due 1994. shall be re-i '%% Series.

7%% Series.

due 2000 .....................

due 2001 ....................

50.000.000 65.000.000 deemed under sinking fund provisions at $ 2.000.000 each year commencing on December 1. 1976, at the 7%% Series. due 2001 .................... 70.000.000 principal amount without premium plus accrued in-7%% Series. due 2002 ..................... 100.000.000 terest; 1 Year Fnded December 31.

4. INCOME TAXES 1975 1974 Income tax expense is rnmpnsed nf the fnllntving: (Amounts in Thousands)

Included in Operating Expenses:

1 Provision (credit) for currently payable (refundable) taxes $ 19.452 $ (1..178)

Provision for deferred taxes. net 11 444 24.766 Investment tax credit adiustments. net (credit) . 14.274 (6.241)

Total charged to operating income. 45.170 16.947 Included in Other Incnme:

Reduction in currently payable taxes . (22.571) (16.068)

Provision for deferred taxes ......... 2.837 Total credited to other income (19.734) (16,068)

Total income tax expense $ 25.436 $ 87ii Pmvisinns for net drferrrd inrnme taxes result from timing differenres in the rrrngnitinn nf the following items fnr tax and finanrial reporting,purpnsrs and whirh tax efferts wrre as fnllnws:

Excess of accelerated depreciation deductinns over straight. line depreciation otherwise deductible . $ 21.245 $ 14.513 Deferred fossil fuel inventory costs . (9.912) 16.814 Utilization of subsidiary's tax net loss . 2.837 Taxable gain on sale and leaseback of properties. 491 (3.325) 1 Accrual of franchise taxes on books. not deductible until paid (380) (3.236)

Total provisions for deferred taxes. net. $ 14.281 $ 24.766

Year Ended December 31.

'

4. INCOME TAXES (continued) 1974 1915 (Amounts in Thousands)

'-.'.-;, ". 'Iteconcfliation of an amount. computed by applying the federal income tax rate of 484o to pre.tax

~,: income (net income plus income tax expense). to total income tax expense follows:

$ 60.988 $35,112

.. Amount derived by multiplying pre-tax income by 48'yo .

--'dd (deduct):

~ - ~, ~ =.' ', . '; .Investment tax credits (utilized) eliminated items multiplied (14,820) 5.706 Other specific reconciling by 48%%%d:

(26.212)

(28.179)

. -,,'-. ', ~'Aliowancc for funds used during construction.

.." ';-.-,-, ";, -~.'Differences between book and tax property depreciation and amortization (2.512) (3.523)

%%d'., -'.'-,"',-.',,,"t"P".; "', for which deferred taxes have not been provided . (4.022)

-Taxes and fringe benefit costs capitalized (3.154)

(561) 59

,'~~ %"," "'tate income taxes and other differences. net

=

taxes........ 11.162 7.120 Provisions for current and deferred 14.274 (6.241)

-".." i= -:,",',-..Investment tax credit adiustments. net

$ 25,436 S 879

" Total income tax expense .

~

',%%d

...,, '..'5 .COMMITMENTSANDCONTINGENCIES

~

It is estimated the Company's construction pro- later than December 31, 1979. The Company and PM

. gram for 1976 through 1978. excluding nuclear fuel,

~ ~

have entered into coal purchase contracts for 80% and will cost approximately $ 826 million. At December 20%, respectively. of LC's production at prices suffi-31, 1975, firm commitments for construction aggre- cient to meet all of its costs. The adjacent mine is

. gated approximately $ 436 million plus approxi- currently expected to cost approximately $ 46.6 mil-mately $ 306 million for initial and replacement nu- lion.

clear fuel. In addition. the Company has a contract 4 "with the Energy Research and Development Ad- Rentals. excluding nuclear fuel, charged to income ministration for nuclear fuel enrichment require- were approximately $ 7.400.000 in 1975 and ments through June 30, 2002, which is cancelable $ 4,300,000 in 1974. Minimum rental commitments without penalty upon five years written notice. Pay- under noncancelable leases (except for nuclear fuel) ments for enrichment services are anticipated to ap-,. at December 31. 1975 were approximately (in r ,

proximate $ 110.million during the next five years.

.Many contracts include escalation provisions.

thousands):

Payable 'C2'enerators Other Total 1916 $ 3.800 $ 2.800 $ 6.600 The Company has entered into agreements with 1977 3.800 2.400 6.200 Pickands Mather gc Co..(PM), a firm engaged in own- '1978 3.800 1,400 5.200 ing, operating and'anaging mineral properties, to 1979 1980 3,800 3.800 800 100 4,600 4.500 develop two adjacent deep coal mines in Pike County, 1981-1985 19.000 3,400 22,400 Kentucky, each capable of producing 1,000,000 tons 1986-1990 19,000 3,100 22,100 of coal per year over about 25 years. A subsidiary, 1991-1995 19.000 2,300 21,300

"'eslie Coal Mining Company (LC), has been formed, Remainder '13.300 6,300 19.600

owned 80% by the Company and 20% by PM. to

-'construct and develop one of the mines. Significant Rentals under a nuclear fuel lease totaled $ 5,400,000

'* aspects of LC's financial position are summarized as in 1975 and $ 300,000 in 1974 of which $ 3,500,000 for follows (in thousands): 1975 and none for 1974 was charged to income. Such December 31, 1975 1974 rentals include a component based on energy pro-

= Total assets $ 17.744 $ 2.956 duced and another computed on the lessor's unamor-Notes p a y able to bank tized acquisition cost ($ 47,100,000 at December 31, (guaranteed by the Company) ............ $ 16.200 1975). Rental payments for nuclear fuel presently under lease are estimated to approximate $ 11,000,000 The Company has guaranteed the obligations of LC in 1976 and 1977 and declining each year thereafter under the terms of bank loan agreements and a lease through 1980. Under the terms of the leases for the financing arrangement which can provide up to $ 49.7 internal combustion turbine (ICT) generators and the million in funds for the LC mine (currently estimated nuclear fuel, the Company, under certain cir-maximum capital cost is $ 50 million). The Company cumstances, is contingently liable to purchase the

~

,.has further agreed to advance any other funds re- properties from the lessors. The Company is respon-

. -,quired by LC and to cause LC to complete the mine not sible for expenses in connection with most of the

leased properties,'including insurance, taxes and maintenance. ion of the Company the validity of the fossil fuel E lectric utilityplant at December 31, 1975 includes adjustment clause will be upheld.

approximately $ 15 million representing cost less ac-cumulated depreciation of four hydroelectric projects On February 20, 1976 the NCUC approved the licensed by the Federal Power Commission (FPC), Company's application for a permanent increase in which licenses expire in 1976, 1993, and 2008. Upon rates applicable to North Carolina retail operations, j>

or after expiration of each license. the United States and also approved $ 14.412,000 of related interim-may take over the project, or the FPC may issue a new increase revenues billed in 1975.

license either to the Compan'y or a new licensee. In the Operating revenues for the year ended December event of a takeover or licensing to another licensee.

31, 1975 include $ 53,793.000 (including $ 30,754,000 the Company would be paid its "net investment" in under provisions of a fossil fuel adjustment clause the project. not to exceed fair value, plus severance to wholesale customers) subject to possi-dsmagas, if.any. No provision for amortization ra-

'pplicable ble refund to the extent not finally allowed by pend-serves as required for the determination of "net in- ing rate proceedings. Included in the balance sheet is vestment" has been recorded as such amounts. if any. deferred fossil fuel inventory costs of $ 3,790,000 are considered immaterial. In 1973, the Company which is subject to FPC review and approval which

,, applied for a new 50-year license for the Walters Hy- may necessitate adjustments if such review so re-droelectric Project which origina! license expires in quires.

November 1976. A competing application has been filed by a group of rural electric cooperatives. The The Attorney General of North Carolina has ap-I Company expects that its license application will be pealed the NCUC order of August 27, 1975 which granted.. authorized the Company, effective September 1, 1975. to replace its automatic fossil fuel adjustment The Company is a member of iiiuclear Mutual clause with a corresponding increase in basic rates, 25 Limited, established to provide insurance coverage

'",. against property damage to members'uclear and to recover through revenues over approximately

generating facilities. The Company would be subject twelve months deferred fossil fuel costs totaling

".~ to a maximum assessment of about $ 19 million in the $ 12.367,000 at August 31, 1975. Accordingly, the

":.-, event of losses. Company. from September 1 through December 31, 1975, has recorded revenues of $ 30.135,000, includ-

~ .. In 1972 the Company committed a total of ing $ 4,425.000 applicable to recovery of the previ-

'3,450,000 for research concerning development of ously unbilled deferred fossil fuel costs. Although,

': upon motion of the Attorney General, the NCUC has

" the Liquid Metal Fast Breeder Reactor payable in ten equal annual installments through 1981.

reconsidered its order and determined that thi; Attor-ney General's exceptions were without merit, the ul-There are certain claims pending against the Com- timate outcome of this matter is uncertain pending final judicial determination.

" pany; in the opinion of. the Company, liabilities. if

,:!

~

>

'ny, arising from these claims would not have a mate- 6. RATE INCREASES

, rial effect on the financial position or results of opera-

tions of the Company. Operating revenues include amounts (1975,

'.-.',

$ 252,996,000; 1974, $ 110 486.000) attributable to au-Federal income tax returns after 1973 have not been thorized rate increases placed in effect during 1975

',. examined. and 1974 (see Note 5).

The decision of the North Carolina Court of Ap- 7. PROPOSED ACCOUNTING RULES

':< peals affirming the order, dated December 1974, of In May 1975 the FPC published for comment cer-k; the North Carolina Utilities Commission (NCUC) tain proposed revisions in its uniform system of ac-

'r~g'with respect to the Company's automatic fossil fuel counts which would provide for a formula establish-

.'".> adjustment clause applicable to North Carolina retail ing a ceiling on AFC (allowance for funds used during j ys;operations has been appealed to the North Carolina construction) rates and the separate reporting in the

@Supreme Court by the Attorney General of North statement of income of the debt and equity portions of

+jCarolina. The Company recorded revenues of AFC. The ultimate effects, if any. on the Company's

.~$ 71,101,000 in 1975 and $ 60,81'1,000 in 1974 pur- financial position and results of operations are not

'<Qsuant to such automatic fossil fuel adjustment clause. presently determinable pending definitive action on

~%The resolution of the matter'is pending. In the opin- the proposal.

>i>~~~

,'ra

Auditors'pinion To the Board of Directors and Shareholders of Carolina Power 8c Light Company:

We have examined the balance sheet of Carolina Power 8c Light Company as of December 31 ~

1975 and 1974. and the related statements of income, retained earnings, and source and use of financial resources for the years then ended. Our examination was made in accordance with generally acceoted auditing standards and, accordingly. included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.

As discussed in the next to last paragraph of Note 5 to financial statements. operating revenues for 1975 include $ 53,793.000 and the balance sheet includes deferred fossil fuel inventory costs of $ 3,790.000, which amounts are subject to possible refund or adjustment to the extent not finally allowed in pending rate proceedings.

As discussed in the last paragraph of Note 5 to financial statements. the Attorney General of 26 North Carolina has appealed the North Carolina Utilities Commission order of August 27. 1975.

under which the Company has recorded revenues of $ 30.135,000 from September 1 through December 31, 1975 and has unrecovered deferred fossil fuel inventory costs of $ 7,942,000 at December 31. 1975. The ultimate outcome of this matter is uncertain pending final judicial determination.

In our opinion. subject to the effect. if any. of the final determination of the uncertainties described in the preceding two paragraphs, the financial statements referred to above present fairly the financial position of the Company at December 31, 1975 and 1974. and the results of its operations and the source and use of its financial resources for the years then ended, in conformity with generally accepted accounting principles applied on a consistent basis.

Raleigh. North Carolina February 20. 1976

Directors Officers At fanuary 1. 1976 At January 1, 1976 Year shown in parenthesis indicates beginning Shearon Harris Darrell V. Menscer I of period of service as a director President Vice President Daniel D. Cameron. Sr., President. Atlantic Telecast- J. A. Jones Albert L. Morris, fr, ing Corporation, )Nt)mtngton. N. C. (1970) Executive Vice President Vice President (Group Executive)

Felton J. Capel, President. Century Associates of J. R. Riley North Carolina, Southern Pines. N. C. (1972) Sherwood H.'Smith, Jr. Vice President Executive Vice President Charles W. Coker, Jr.. President. Sonoco Products (Group Executive) R. S. Talton Company, Hartsville, S. C. (1975) Vice President Edward G. Lilly, Jr.

E. Hersey Evans, Farmer. Laurinburg. N C. .(4949) Senior Vice President Edwin E. Utley (Group Executive) 'Vice President Margaret T. Harper. Owner. Stevens Agency, South-port. N. C. (1975) W. J. Ridout, Jr. J. L. Lancaster. Jr.

Senior Vice President Secretary Shearon Harris, Chairman! Presideiit of the Company. (Group Executive)

Raleigh, N. C. (1961) Robert M. Williams William E. Graham, Jr. Assistant Secretary L. H. Harvin, Jr., President. Rose's Stores. Inc.. Hen- Vice President and derson, N. C. (1958) General Counsel James S. Currie Treasurer 27 Karl G. Hudson, fr., Executive Vice President and Samuel Behrends. Jr.

General Manager. Hudson-Belk Company. Raleigh, Vice President J. R. Powell N. C. (1967) Controller E. M. Geddie J.A. Jones, Executive Vice President of the Company. Vice President Paul S. Bradshaw Raleigh, N. C, (1971) Assistant Treasurer l William B. Kincaid Edward G. Lilly, fr.. Senior Vice President of the Vice President C. D. Mann Company. Raleigh. N. C. (1971) Assistant Treasurer M. A. McDuffie Sherivood H. Smith. fr., Executive Vice President of Vice President the Company. Raleigh. N. C. (1971)

Transfer Agents and Registrars Horace L. Tilghman. Jr.. Real Estate and Investments.

Marion. S. C. (1961) For Common Stock and Preference Stock:

Wachovia Bank 8g Trust Company. N.A..

fohn B. Veach. President. Veach-Iviay-Wilson. Inc.. Winston-Salem. N. C.

Asheville. N. C. (1958) Bankers Trust Company. New York. N. Y.

John F. Watlington, fr.. Chairman of the Board. For Preferred Stock:

Wachovia Bank Zc Trust Company. N.A.. Winston- Wachovia Bank 8c Trust Company, iN.A..

Salem. N. C. (1970) Winston-Salem. N. C.

Statistical Review (Dollars in Thousands) 1975 1974 '1 973 1972 1971 1970 1965 Balance Sheet Data (End of'eriod):

Total Utility Plant other than Nuclear Fuel S2A89.107 2.197.738 1,872.859 1.524,238 1.212,822 981.571 530,839 Accumulated Depreciation ............. 29f>.426 256.659 227.fi45 200.190 178.096 161,821 101.828 get Utility Plant other than Nuclear Fuel . $ 2.192,681 1,941.079 1.645.214 1.324.048 1,034.726 819.744 429.011

=

Capitalization Common Stock and Retained Earnings .. $ 722.287 548.465 531,297 447.609 299,852 260,154 156,524 Preferred Stock . 288,118 288.118 223,801 173,801 124,376 89,376 34,376 Preference Stock . 47.900 First Mortgage Bonds. Net'........... 1.105.050 983.861 832,548 632,497 533.003 398.427 199,4 4fi

~ 'ther Long-Term Debt................. , 50.204 50.234 50.253 50.110 123 134 748.091 1.280 391.626 Total $ 2.213.559 1.810.678 1.fi37.899 1.304.017 957.354 Ratio of Accumulated Depreciation to Utility Plant in Service ................ ohio

'1 6.1 18.8 17.7 18.4 18.9 20.9 21.2 Percent of Total Capitalization Common Stock and Retained Farnings .. 32.6 29.3 32.4 34.3 31.3 34.8 40.0 Preferred Stock 13.0 15A 13.7 'I 3.3 13.0 12.0 8,8 Preference Stock . 2.2 First Mortgage Bonds. Neti ............ 50.8 48.5 55.7 53.2 S0.9 Other Long-Term Debt................. 2.3 3.1 3.9 .3 Total . 100.0 100.0 100.0 100.0 100.0 100.0 100.0 Ratio Bonds to Not Utility Plant other than I4uclear Fuel ............... 'Yo 50.4 50.7 50.6 47.8 51.5 48.6 46.5 Results of Operations Operating Revenues ..................... $ 606.329 460.977 341.206 307.136 255.643 204.846 122.003 Operating Expenses Fuel for Generation of Power........... 232,722 235,842 106.191 88.549 84.749 69.014 23,677 Deferred Fossil Fuel Expense (Credit) ... 20.650 (35.028)

Purchased Power....... 13.115 14A94 7.847 11.537 10.422 9.799 6.050 Other Operation Expense 57,036 46.549 4'1.910 32.979 28.510 23,765 16,971 Maintenance . 33,686 28.591 29.749 25.624 23.098 19.849 8,282 Depreciation . 46,648 35,544 31.845 27.280 22,820 19.476 11,280 28 Taxes Other . 46A36 40.684 28.70(i 24.021 21.400 19.053 10.962

Taxes Income . 45.170 16.947 21.268 26.378 14.328 8.289 17.119 Total Operating Expenses......:..... 495.463 383.623 2fi7.516- 236.368 205.327 169.245 94.341 Operating Income . 1'10.866 77.3 4 73.690 70.768 50.316 35.601 27.662 Other Income Allowance for Funds Used During Construction 59.957 54,609 38.093 24,759 14.708 '1 0.505 1.628

.................

Income Taxes Credit Other Income (Deductions) Net Other Income .

.......

19.734 1.020 80.711

'1 6.068 71A53 77f) 10,477 393 48.963 6.666 31A74 49 3.532 hhh 18.757

~33 2.709 13.181 266 282 2.176 Gross Income

'1 91.577 148.807 122.653 102.242 69.073 48.782 29.838 Interest Charges Bond Interest 81.108 63.676 45.653 37.782 27.895 19.601 7.706 Other Interest Charges ................. 8.847 12.860 11.001 3.931 3.704 4.356 175 Total interest Charges ...............'et 89.955 76.536 56.654 41.713 31.599 23.957 7.881 Income 101.622 12.271 65.999 60.529 37.474 24.825 21.957 Preferred Stock Dividend Requirements . 25.752 20.672 13.011 9.612 8.371 4.699 1.606 Earnings for Common Stock,............ 75.870 51.599 52.982 50.917 29,103 20,126 20,351 Dividends Declared on Common Stock .. 46.173 37.375 32.691 27.174 22.122 19.013 13A36 Earnings Invested in the Business ........ $ 29.697 14.224 20.29't 23.743 6.981 1.113 6.915

Earnings Per Share Weighted Average ... $ 2.70 2.21 2.58 2.86 1.97 1.56 1.80 Dividends Paid Per Common Share ....... S 160 1.60 1.54 1.475 1.46 1A6 1.16 Payout Percent 59.3 72A 60.0 51.6 74.1 93.6 64 A Shares Common Stock Outstanding (000's)

Year-End 32.693 23.439 23.234 20.'1 25 15.555 13,986 11.297 Weighted average during year.......... 28,109 23.324 20,554 17,814 14.776 12.934 11.289 Times Earned

Bond Interest Before Income Taxes .... 2.68 2.35 2.92 3.23 2.86 2.77 6.06 After Income Taxes ..... 2.36 2.34 2.69 2.71 2A8 2.49 3.87 Preferred Dividend Requirements....... - 3.95 3.50 5.07 6.30 4.48 5.28 13.67 Fixed Charges'. 2.27 1.92 2.34 2.90 2.50 2.25 5.77

'Includes current maturities of long-term deb t.

%or purposes of this ratio. earnings represent net income plus income taxes and fixed charges; fixed charges represent interest charges plus an imputed interest factor portion of re ntals.

Revenues (Thousands) 1975 1974 1973 1972 1971 1970 1965 Residential S 192.734 156.134 117,559 103,254 8!J.7'1 1 75,990 47,985 Commercial . 111.602 88.420 65.647 58.246 49,223 40,981 23.888 Industrial Textile'.................... 70.225 S6.661 36.689 33A38 26.725 21.174 11.909

Industrial Other . 97.573 78.649 47,677 41.161 34.096 28,889 15,385 Government and Municipal .............. 21.037 'I 6.034 1'1.632 10,827 9.685 8,573 7,292 Sales for Resale 99.990 46.015 43.827 35.396 31.643 25.794 14.376 Total Electricity Sales Within Service Area 593,161 441,913 323,031 282,322 241,083 201.401 120,835 Nonterritorial Electricity Sales ........... 7,485 13A99 13,608 21,040 11.967 1,225 Miscellaneous Revenues ................. 5.683 5.565 4.567 3.774 2.593 2.220 1.168 Total Operating Revenues............ S 606.329 460.977 341.206 307.136 255.643 20 i.846 122.003 Load Data Electric Energy Sales (Millions):

Residential Commercial .

............Kwh 6.152 5.917 5,937 5,208 4.974 4.634 2.708 3.798 3,576 3.628 3,202 2.945 2,693 1A62 Industrial 7.833 8.273 7.885 7,037 6.232 5,623 3,030 Other 6.274 5.84'1 5.779 S.070 4.710 4.352 2.507 Total Energy Sales Within Service Area 24,057 23,607 23,22!J 20.517 18,8fil 17.302 9,707 Nonterritorial . 61 4fi9 853 1.584 796 246 Total Electric Energy Sales........... 24.118 24,076 24.082 22,101 19.657 17.548 9,707

~

Company Uses, Losses and Unaccounted For . 1.700 '1.556 1.501 1.fi71 1.307 1.248 866 Total Energy Requirements ..........Kwh 25.818 25.632 25.583 23.772 20,!J64 18.7!J6 10.573

'lectric Energy Supply (Millions):

Generated Steam Fossil .........Kwh 18.374 18,603 19,875 16.605 16,135 16.311 8,978

Generated Steam Nuclear ........... 5.591 4,813 3,764 4.828 2,414 3

. Generated Hydro..................... 947 921 891 882 849 623 742

Generated Other Fuel ................ 31 215 '1 13 210 257 315 Purchased and interchange Net ....... 875 1.080 940 1.247 1.309 1.544 853 Total Energy Supply ............Kwh 25.818 25.632 25.583 23.772 20.!J64 18.796 10.573 Peak Demand of Firm Load (000's):

Within Service Area ...............KtV 5.060 4.771 4,711 4.119 3,625 3A84 1.931 Nonterritorial . 38 143 212 51fi 170 Total Peak Demand ..............KtV 5.098 4.923 4.635 3.795 3A84 1.931 Total Capabilitv at December 31 (000's):

+1 Fossil Fuel Plants..................KtV 5.142 5.014 4A53 3,833 3.482 3,040 1,632

"

Nuclear Plants....................... 1.490 700 700 100 100 Hydro Plants. 212 212 212 212 211 211 211

, Purchased . 228 280 280 265 245 378 334 Total Capability'................. 7.072 6.206 5.645 5.010 4.638 3.629 2.177

'Miscellaneous

+ Customers at Year End

'esidential .. 580.954 550,128 535.607 S15.041 495.528 478.914 415.396

, 'y Other . 99.574 98.179 96.844 95.020 90.561 86.511 70.911 Total . 660.528 648.307 632A51 610.061 586.089 565 A25 486.307 Average Revenue Per KWH Restdentlal ...................... Cents 3.13 2.64 1.98 1.98 1.80 1.64 1.77

'ommercial. 2.94 2A7 1.81 1.82 1.67 1.52 1.63 Industrial . 2.14 1.64 1.07 1.06 .98 .89 .90 Total Energy Sales tVithin Service Area . 2A7 1.87 1.39 1.38 1.28 1.16 1.24 Residential Average Annual Energy Use .......Kwh 11.094 10.861 11,276 10,293 10,205 9,794 6.620 Average Annual Bill................... S 347.54 286.60 223.29 204.05 184.08 160.62 117.28

. Steam Electric Generating Plant Fossil Fuel

i..;) Average Annual Heat Rate (BTU Per Net KtVH) ................. 9,951 10.090 9,739 9.946 9.832 9.785 9,170 Average Cost Per Million BTU ....Cents 119.0 116.7 50.0 45.1 48.0 41.2 27.0

, Average Cost Per Million BTU All Fuels . 94.6 96,6 44.6 39.6 42.1 27.0

.'.i Annual Load Factor, Service Area Load ...

'r oj~ 58 1 60.2 59.9 61.3 63.5 60.8 62.5 I'ncludes yarn mills, weaving or cloth mills. finishing plants (bleaching. shrinking, dyeing and printing). knitting mills, and s'hosiery mills.

!5~'Company now has 821,000 Kw. under construction for service in1977.

~ tL+'g!!r 1 4,$ ,

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~

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'$'Ejg,!"

Harris Exhibit No. 2 CAROLINA POVER 4 LICHT C>HU'ANT PRELIMINART CONSTRUCTION PROCRAH BASED OM 1911 CONSTRUCTIOM SUDCET (Thousands ot Dollars) i.) PRODUCTION PLANT

~77 ~78 1979 1980, ~198 1982 1983 1984 ~185 ~86 10 'fest Tot41 Pl>tch444 L4ad fot P14acs 5>292 1>>043 199 149 149 1,096 l>>024 1,000 1 e 000 11>> Ddd Coascruet. Unit No. 2 Srunsvick - N, 821 NH l>312 2>>461 440 10>213 Construct Vnit No. 1 Stunevick Nr 821 20>847

r. Coascrucc Vale No. 4- NV>> 1977 1>061 22 >>3SS Roxboro Fo 120 W ~ 1980 II>>>078 Sd>>457 32>>014 7,047 91>S9d Coascruec Vair Ho. 1-Maya F, 720 NM>> 1983 3>>719 5 ~ 484 85>633 150>>2$ 1 138>406 $ 8,086 LS,SZS 4$ 5 elOS Construct Vait No. 2-Mayo F, 720 NM, 1985 527 2,172 3>163 4>75d 5$ >>76$ '12>>296 106>>520 Sl>788 13>379 "350,311 Consctucc Unic No. 1-Harris He 900 NHr 19d4 73>$ 42 Ud>>458 ill>>228 255>>336 165>022 1$ 6>>972 141 ~ 710 37>910 1,170,478 Coascruct Vale No. 2-Rattle H, 900 NM, 1986 17,201 17,906 29>218 74>>SS9 138>>371 101>>330 92>>033 ld>>683 22>177 619>>833 Construct Uait No. 4

-

6 Harris N, 900 NH, 198$ 36>524 12>>747 11, $ 67 22,768 29,726 I

g Coasttucc Qaic No.

Rertis -

3-N. 900 NM, 1990 6>> 671 12> 906 d>>874 11,S10 11.583 71 >>482 20>>637 155 >>883 46>>886 180 >>153 115>>569 134,411 149>>793 123>088 193>>235 lid>>649 575>>464 Coastruct Unit No. 1-5R Hr 11SO Coasctucc Uaic No.

51 Ne I-1989 1150 'We 1991 2 472 7,343 12>>823 26,440 Sf>>43d 52,400 136,276 194,798 272,432 370,114 1.130,53d Ne 2>>S22 2>>706 3,0$ 6 6,779 11,618 23.663 4$ ,146 42e017 118>>150 168>>968 424 ~ 425 Construct Undesignated Uait - F, 11SO NM>> 1993 19>779 19,779

. Air 6 Hater Duality Coactol Devices 23>>848 20,384 36,447 ZO 93,763 Additions 4 Rapl4Ceaeats 4C I

Ceaerariag Plants TOTAL PRODUCTION PLANT

- Systea ~16 23l 232>>889 9 253 270>S81 397>>$ 12 3 500 5S1 ~ 483 3 500 546>>069 667 841 6 566 752>470 6 6aa 719>S92 6 696 772>>248 6 SOO 905>>161

~Q,

$ >>816>>246 TRANSMISS ION PIANT Construction Linear Nev and Rebuilt 13,631 Coascruct - Subscatioasr 19,129 16>>$ 74 29,200 59>>613 42,980 27,004 43,493 6d>>255 33>>680 353 '59 Nev aad Addiciona 6 423 4,774 12>724 14,213 9>476 l8,827 28>941 7,385 26,222 4S>>494 204>>479 Buildings, Diepecchiag 6 Related Facilities 1>>72$ 686 328 375 736 6>261 Additions 4 Repiaceaeats-Liaes 4 Substatioas I OS3 I 235 I 304 I 47$ 1 676 I 902 2 161 2 456 2 79$ 3 1$ 2 19 222 TOTAL TRANSMISSION PLANT 21,815 2$ ,824 31,190 45,219 71.140 94,131 58,596 53,894 91,914 83,092 5$ 3,821 DISTRISUTION PLANT Conecruction Subecacioas and Rslaced Lines Il>366 17r319 14>>380 14>660 15,921 18,296 21>>02d 24>165 157e123 Coascructioa Specific 4 Miscellaneous Disctibucion Lines 1>248 1>>440 I>>540 1,650 1,770 1,900 2,030 2>170 2,310 2 '50 1$ >>$ 08 Discributioa Reveaw Extensions and Niaor Line Uotk 17 > 063 lde 380 19>> 100 ZieIZD 22,640 24>>270 27,680 Putehaae Line Transforaers 25>920 29>420 Slr 240 237>433 4ad Raga>lscots 6>500 l>>000 8,000 9,000 10,500 12,000 14>000 16,000 18,000 20>>500 121e$ 00 Purchase Haters 4 Metering Eatui pe>eat Purchase Foie Top Raclosets 3,223 S,850 4>000 4,f90 5 '60 6,030 6,d90 1,$ 70 8,9fO 10,180 60,843 Iascall Capacicors oa Liae 150 170 195 220 250 290 330 380 430 490 2 '05 aad ia Subecacioas 763 974 1,120 1,28$ 19482 1,705 1,961 2,256 2,595 14 > 991 Right~I-Vay CIaiaa 4 5<<ccieaeacs 210 220 230 240 250 260 Revenw - Producing Subecacion-210 280 290 2,450 Conacructioa 4 Related Uotk ~I 250 I 438 I 654 I 903 2 189 2 518 2 896 3 331 3 831 4 407 ZS 417 TOTAL DISTRIBUTION PLANT 37,132 44,701 53,602 54,213 58,791 62,595 69,952 77,958 86,503. 96,317 641,770 CENTRAL FIANT Coax cruet Suildings, Vatehouses, ecc. 1>>724 4>>792 500 1>>250 500 f00 $ 00 Coeaunicacioas 6 Dispatching 11,266 Facilicies 2,135 3,509 ',426 3,820 3,43f 3 '34 4 >>S19 $ >>191 5 '63 6>>SSO 42 '82 Office Furniture 4 Fixtures 1.552 4Z1 440 468 49$ 529 562 598 , 634 672 6,374 Fe>rchaee Autos 4 Truck4 2, 779 1,910 l,ddf 2,045 2 326 2 '38 2 '97 3>>007 3 ~ 218 '26 26>>489 Add i clone 4 Replaceaeacs 3 392 499 528 Sll 614 672 730 785 850 3

965

' 556 TOTAL CENERAL PLANT 11, 5 82 11,131 6>>777 do154 7>>373 8 ~ 273 9>308 10>>081 11>>225 12 ~ S6S 96 ~ 469 TOTAL CONSTRUCTION 304,41$ 352,037 489,381 659,069 6$ 3,379 BS2,846 890 ~ S26 861,82S 967,890 1,097,135 7,138,3C6 CUMULATIVE TOTAL 304,418 656,45S 1,14S,836 1,804,905 2 ~ 488,284 S,SZ1,130 4 211,456 5,073,2SL 6,041,171 7,138,306

,~

ROBERT R. NATHAN ASSOCIATES, INC.

1200 EIGHTEENTH STREET, N.W., WASHINGTON, D.C. 20036 PHONE 202/833-2200 TELEX: 248482 CABLE~ NATECON EXHIBIT REFERRED TO IN TESTIMONY OF ROBERT R. NATHAN Carolina Power & Light Company November 30, 1976

I I

Carolina Power and Light List of Charts and Tables Indexes of Electric Power Sales (in Kwh), U.S. and CP&L-North Carolina, Annually, 1960-75, and Quarterly, 1972-76 Indexes for the U.S. of: Electric Power Sales (in Kwh), Real GNP, Real Per Capita Personal Income, In-dustrial Production-Total Manufacturing, and Non-agricultural Employment, Annually, 1960-75 Indexes of: Electric Power Sales (in Kwh) by CPGL-North Carolina, Real Per Capita Personal Income-North Carolina, Industrial Production-Textile Mill Products, and Nonagricultural Employment-N.C., Annually, 1960-75 Indexes of Output Per Hour of All Persons, Labor Com-pensation Per Hour and Unit Labor Costs in the Private Business Sector, Annually, 1960-75, and Quarterly, 1972-76 Gross National Product, Annually, 1960-75, .and Quarterly, 1972-76 Actual GNP, Potential GNP, and Percent Deviation of Actual GNP from Potential GNP, Quarterly, 1952-76 Con"umer Price Index, All Items, Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates, 1960-76 Consumer Price Index All Items and Food, Monthly Percent Changes, Averaged Over 3 Months, Seasonally

'Adjusted Annual Rates, 1972-76 Consumer Price Index -- All Items, Commodities Less Food, and Services, Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjust d Annual Rates, 1972-76 Wholesale Price Index -- All Commodit'ies; Industrial Commodities; and Farm Products, Processed Foods and Feeds; Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates, 1972-76

Coverage of Cost-of-Living Escalator Provisions in Major Union Contracts, 1960-76

12. Indexes of Consumer Prices and Moody's Average Corporate Bond Yields, Annually, 1960-75, and Monthly, 1972-76

13. Interest Costs on Long-term Debt, CPGL, Annually, 1960-75

14. New Corporate Security Issues: Gross Proceeds by Type of Issue, Annually, 1971-,75, and Quarterly at Annual Rates, 1974-76

15. Indexes of Consumer Prices, Rate of Return on Year-end Common Equity Capital of CPGL, and Average Price of CPSL Common Stock, Annually, 1960-75, and June 1976

16. Relationship of. Year-end Market Price to Year-end Book Value, CPGL'ommon Stock, Annually, 1960-75, and 12 Months Ending June 1976

17. Indexes of Rates of Return on Year-end Common Equity and of Common Stock Market Pr'ices Per Share: Moody's 24 Public Utilities and CPGL, Annually, 1960-75 18- Rate of Return on Year-end Common Equity and Interest Cost of New Long-term Debt, CPSL, Annually, 1960-75, and 12 Months Ending June 1976

19. Yields on Grade A Utility Bonds Compared with Rates of Return on Year-end Common Equity of Moody,'s 24 Public Utility Companies and of CPGL, Annually, 1960-75

20. 'rends in Common Stock Prices: Industrials, Public Utilities, and CPGL, Annually, 1960-75, and Monthly, 1972-76

21. Indexes (Deflated the Consumer 'Price Index) of Indus-trials, Utilities, byand CP&L Common Stock Prices, Annually, 1960-75, and Monthly, 1972-76

22. U.S. Investor-owned Electric Utility Generating Capacity:

Estimated Investment Costs per Kilowatt, Annually, 1960-75

I CHART I, INDEXES OF ELECTRIC POWER SALES (IN KWH) I U, S, AND CP5L-NORTH. CAROLINAr ANNUALLYr 1960-7 5r AND QUARTERLYr 1972 76 INDEX (1960=100) 550 550 500 500 450 450 I I I

I I

I I I 400 400 350 North Carolina/CP8L 350 North Carolina/CP8L 300 300 250 250 200 200 U.S.

150 U.S. 150 100 .1 00 1960 61 62 63= 64 65 66 67 68 69 70 71 72 73 74 75 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 4 1 2 3 1972 1973 1974 1975 1976 ANNUALLY QUARTER Y SOURCE: TABLE 1,

I RRN Table 1 page 1 of 2 Table l. Indexes of Electric Power Sales (in, Kwh), U.S. and North Carolina/CP&L, Annually, 1960-75 and Quarterly, 1972-76 Electric power sales Year and quarter U.S. total Index N.C./CPGL (in mil. (1960=100) (in mil. '1960=100) of Kwh) of Kwh)

Annual 1 1960... 683 il99 100.0 3,554.2 100.0 1961... 720,728 105.5 3,866.5 108.8 1962... 776,088 113.6 4,257.8 119.8 1963... 830,811 121.6 4,677.8 131.6 1964... 890,356 130.3 5,796.3 163.1 1965... 953,414 139.6 6,582.5 182.4 1968 '.

1966...

1967...

1969...

1970...

1,038,982 1,'107,023 1,202,321 1,307,178 1,391,359 152.,1 162.0 176.0 191.3 203'. 7 7,364.8 8,100.6 9,263.3 10,275.4 11,153.1 207.2 227.9 260.6 289.1 313.8 1971... 1,466,441 214.6 12,222.3 343.9 1972... 1,577,714 230.9 13,255.4 373.0 1973... ",703,203 249.3 14,948.0 420.6 1974... 1,700,769 248.9 15,198.4 427.6 197 1,733,024 253.7 15,220.0 428.0 1972:

I 383,153 224.3 3,279.8 369.1 351.7- /

~ ~ ~ a Ig 376,150 220'.2 3,125.0 III..

a IV...

~ ~

417,301 244.3- 3,487.3 392.5

/

401,111 234.8- 3,363.3 378.5 1973:

I 419,458 245..6 3,735.0 a/

420. 3-/

II... ~

~ ~ ~

402,725 235.8-/ 3,473.2 390.9 III.. 458,535 268.5-/ 4,050.9 '455.9 //

IV ... 422,485 247.4 3,688.'9 415.2 1974:

I. 416,657 243.9- 3,775.9 425 0 IX... 408,251 239.0 3,607.6 406.0-/

III..

IV..

455,606 420,249 266.7 246.0 '// 4,054.3 3,760;7 456.3-/

423.2-1975:

I 0 ~ ~ a a ~ ~ ~ 429, 703 251.6- 3,729. 4 419. 7-/

II.... 411,600 241.0- 3,487.5 392.5

/

XII.. 462,285 270.7- 4,155.3 467. 6-/

IV... 429,463 251..4 3,847.9 433.1-Continued--

RRN Table 1 page 2 of 2 Table 1 (continued)

Electric power sal'es Year and quarter U.S. total Xndex N.C./CP&L Index (in mil. (1960=100) (in mil. (1960=100) of Kwh) o f Kwh) 1976:

I 458,869 268.7 4,237.4 476.9 Il

~ ~

o

~

~

~

~

~ ~

~ ~ ~

~

t

~ 0 ~

~ ~

~

~ ~

~

~

~

~

~

~ 434,038 254 1 'I740 0 420.9 /

a/ Quarterly electric power sales are first converted into annual rates, indexes are then=derived by dividing"annual rate of each quarter by 1960 annual sales.

Source: U.S. Department of Commerce, BEA, Surve of Current Business, monthly, and Carolina Power and Light Company.

CHART 2, INDEXES FOR THE UNITED STATES OF'LECTRIC PONER SALES (IN KNH)p REAL GNPp REAL PER CAPITA PERSONAL INCOME INDUSTRIAL PRODUCTION-TOTAL MANUFACTURING AND NONAGRICULTURAL ENPLOYHENT, ANNUALLY, 1960-75 INDEX (1960=100) 260 240 Electric power sales 220 200 FRB Industrial Production, total manufacturing 180 160 Real GNP 140 120 Nonagri cul tura1 employment 100 Real per capita personal income 80 0

1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 SOURCE'TABLE 2,

Table 2. Indexes For The United States of: Electric Power Sales (in Kwh), Real GNP, Real Per Capita Personal Income, Industrial Production-Total Manufacturing, and Nonagricultural Employment, Annually., 1960-75 (Index (1960=100)

Real per capita FRB Indus. Nonagri-Year Electric power Real GNP personal Production cultural sales income total employment U.S. manufacturing U.S.

1960..... 100.0 100.0 100.0 100. 0 100.0 1 96 1 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 105.5 102.5 101.2 100.3 99.6 1 9 62 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 113.6 108.5 104.4, 109.2 102.5 1 9 63 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 121.6 112.7 106.6 115.9 104.6 1964 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 'o ~ 130.3 118.7 111.0 12-4. 2 107.6 1 965 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 139.6 125.7 116.6 136.2 112.1 1966.... 152. 1 133.1 122.1 150.3 117.9 1 967 ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 162.0 136.8 126.5 152.9 121.4 1968. 176. 0 142.8 131.8 161.6 125.3 1969. 191.3 146.4 136.1 169.0 129.9 1970. ~ ~ ~ ~ ~ ~ 203.7 145.9 138.4 160.9 130.8 1 97 1 ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 214.6 150.3 140.1 160.'9. 131.3 1972 230 ' 158.9 146.4 174.3 135.-9 1 973 o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 249.3 167.7 154.4 191.4 141.8 1974.... ~ ~ ~ ~ ~ ~ 248.9 164.8 151.4 190.2 144.6 1975 ~ ~ ~ "o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 253.7 161.7 150.8 171.6 141.9 Q

i3 D'

Source: U.S. Department of Commerce, Bureau of Economic Analysis, Surve of Current Business, w monthly. W8 Federal Reserve Board, Industrial Production Index. bJ U.S. Department of Labor, Bureau of Labor Statistics, Handbook of Labor Statistics, 1975, and ~Em lo ment and Earnin s, monthly.

CHART 3s INDEXES OF.'ELECTRIC POWER SALES (IN K'AH) BY CP8L NORTH CAROLINA'. REAL PER CAPITA PERSONAL INCOME-NORTHCAROLINA, INDUSTRIAL PRODUCTION-TEXTILE HILL PRODUCTS, AND NONAGRICULTURAL EMPLOYMENT N C ANNUALLY 1960-75 INDEX (1960=100) 500 450 400 350 300 Electric power sales 250 Real per capita personal income 200 150 100 FRB Industrial Production, Nonagricultural text>le mill 50 employment products 0

1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 SOURCES TABLE

858 Table 3. Indexes of Electric Power Sales (in Kwh) by CPGL-North Carolina, Real Per Capita Personal Income-North Carolina, Industrial Production-Textile Hill Products, and Nonagricultural Employment-North Carolina, Annually, 1960'-75 (Index: 1960=100)

Electric power Real per capita FRB Industrial Nonagricultural Year sales by personal Production Index employment CP&L/ income textile mill North Carolina North Carolina North Carolina product 1 960 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 100.0 100.0 100.0 100. 0 1 96 1 ~ ~ ~ ~ o ~ ~ ~ e ~ ~ ~ ~ ~ ~ ~ 108.8 102.8 103.0 101.1 1 962 ~ ~ y ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ 119.8 107.9 109.9 105.3 1 963 ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ 131.6 'ill.5 113.9 108.6 1 964 ~ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ 163.1 117.3 123.1 113.2 1 965 ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ 182.4 123.2 134.8 119.7 1 966 ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ 207 2 132.9 143.7 128.3 1967 ~ ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ 227.9 139.5 141.4 133.9 1968. 260. 6 146.3 153.9 140.4 1 969 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 289. 1 153.9 160.1 146.1 1970 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 313. 8 '58.5 150.4 149.1 1 971 e ~ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ 343.9 161.9 153.6 152.1 1972 373.0 173.7 166.1 160.9 1 973 o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 420.6 183.8 180.1 '168. 5 1974 o ~ ~ o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 427.6 179.3 173.6 171.3 1975 428.0 176.8 155.4 167.0 Source: Table 1 and table 2.

CHART 4. INDEXES OF OUTPUT PER HOUR OF ALL PERSONS'ABOR COHPENSATION PER HOiJR AND Uf! IT LABOR COSTS IN THE PRIVATE BUSINESS SECTOR ANNUALLY'960-75> AND QUARTERLY'972-76 I I!DEX (1960=100) 22 0 220 Labor compensation per hour I I

.190 190 I

I I

l 160 I I 160 Labor compensation per hour Uni t labor costs

)30 Unit 130 labor costs

~ I 100 100 Output per hour,

~~

Output per hour, all persons all persons 70 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 1 2 3 4 1 2 3 " 1 2 3 2 3 4 1 2 3 1972 1973 1974 1975 1976 ANNUALLY QUARTERLY PAUf?CE; T!Bl E

RRN Table Page 1 of 2 Table 4. Indexes of Output; Per Hour of All Persons, Labor Compensation Per Hour, and Unit Labor Costs in the Private Business Sector, 1960-7S, and Quarterly 1972-76 (Index: 1967 = 100)

Year Output per Labor compensa- Unit .labor and hour of all tion pcr costs quarter persons hour Annual 1960.... 78.4 71. 4 91.0 1961.... 81. 0 74. 2 91.6 1962.... 84. 3 77.7 92.2 1963... ~ 87.5 80.7 92.3 1964.... 91.4 85.1 93.1 1965..;. 94.5 .88. 4 93.6 1966.... 97.6 94.7 97.0 1967.... 100.0 100.0 100.0 1968.... 103.2 107.6 104.3 1969.. . ~ 103.4 115.1 111.3 1970.... 104.2 123.3 118.4 1971.... ~ ~ ~ ~ 107.6 131.5 122.2 1972.... 110.9 138.9 125.2 1974 '..

1973....

1975....

113.0 109.2 111.4 150.3 164.3 180.2 132.9 150 162.8 4

Quarterly 1972:

I 109. 1 136. 1 124.7 II..

o ~ e

\ 110.4 137.8 124.8 III.

~ ~ ~ ~

~ ~ ~ ~ ~ ~ ~ 110.8 139 .'2 125.6 IV.. 112.7 141.9 125.9 1973:

I 114.0 146.4 128.4 II..

o ~ ~

112.8 148.5 131.6 III. 112.3 151.. 0 134.5 137.1 IV.. 112.4 154. 1 1974:

I 110. 5 157. 1 142. 2 II.. 109.4 161.8 147.9 III.

IV..

108.7 107.6 166.7 170.7 153.4 158.6 1975:

I.. 108.1 176.0 162.9 160.7 II.. 111.4 179.0 III IV.

113.6 ill3 ~ 2 181.3 185.0 159.S 163.4 Continu< d--,

RRN Table 4 Page 2 of 2 Table 4 (continued}

Year Output per Labor compensa- Unxt labor and hour of all tion per costs quarter persons hour 1976:

I ~ ~ ~ ~ ~ ~ ~ ~ 115.3 189. 8 164. 7 II 116.3 193.3 166.1 III..... -.

~ ~ ~ ~ ~ ~ ~ ~

117.4 196.7 167.5P p = preliminary.

Source: U.S. Bureau of Labor Statistics.

'

QUARTERLY, 1972-76 (IN 1972 CONSTANT DOLLARS)

INDEX (1960=100) 180 180 170 170 160 160 150 150 140 140 1 20'20 130 110 130 110 I

100 100 0

1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 0

1234 1972 2 3 1973 4 2 3 1974 4

1975 2 3 1976 4

ANNUALLY QUARTERLY SOUPCE: TABLE

RRN Table 5 Page 1 of 2 Table 5. Gross National Product, Annually, 1960-75, and Quarterly, 1972-76 (GNP in billions of dollars, seasonally adjusted annual rate)

Gross National Product Percent change at annual Year aIld In 1972 rate quarter In constant dollars current In In 1972 dollars Amount Index current constant (1960 = 100) dollars dollars Annual 1960-. 506.0 736.8 100. 0 4.0 2.3 1961.. 523.3 755.3 102.5 3.4 2.5 1962.. 563.8 799.1 108.5 7.7 5.8 1963.. 594.7 830.7 112.7 5.5 4.0 1964.. 635.7 874.4 118.7 6.9 5. 3.

1965.. 688.1 925.9 125.7 8.2 5.9 1966.. 753.0 981.0 133.1 9.4 6.0 1967.. 796,3 1,007.7 136.8 5.8 2.7 1968.. 868.5 1,051.8 142.8 9.1 4.4 1969.. 935.5 1,078.8 146.4 7.7 2.6 1970.. 982.4 ~

1,075.3 145.9 5.0 -0.3 1971.. 1,063.4 1,107.5 150.3 8.2 3.0 1972.. 1,171.1 1,171.1 158.9 10.1 5.7 1973.. 1,306.6 1,235.0 167.6 11.6 5 5 1974.. 1,413 ' 1,214.0 164.8 8.2 1~ 7 1975.. 1,516. 3 1,191.7 161.7 7.3 -1. 8

()uarter 1972:

I 1, 127. 0 1, 141. 2 154.9 13.8 7.6 II..

~ ~ ~

1,156.7 1, 163. 0 157.8 11.0 7.9 III.

IV..

1,181.4 1, 178. 0 159.9 8.8 5.3 1,219.4 1, 202. 2 163. 2. 13.5 8.5 1973:

I...

II..

1,265. 3 1,229.8 166.9 15 9 9.5 1, 288.4 231 1 167.1 7.5 0.4 III.

I'cl

~ ~ ~ ~ 1,317. 5 1,236.3 167.8 9.4 1.7

~ ~ 1, 355 ~ 1 1,242.6 168.6 11;9 2.0 1974:

I... 1 372-7 1,230.4 167. 0 5.3 -3.9 II..

III. 1,399.4 1,220.8 165. 7 8.0 -3.1 1, 431. 6 1,212.9 164.6 9 5 -2.6 IV.. 1,449.2 1,191.7 161.7 5.0 -6.8 1975:

I ~ ~ ~ 1, 446.2 1,161.1 157. 6 -0. 8 -9. 9 IE.. 1,482. 3 1,177.1 159. 8 10.4 III.

IV..

1,548. 7 1,209.3 164.1 19.1 5 ~

11.4 6

1,588.2 1,219.2 165.5 10.6 3.3 Continued--

RRN Table 5 Page 2 of 2 Table 5 (continued}

Gross National Product Percent change at annual In 1972 rate Year and In constant dollars

.

quarter current In In 1972 dollars Amount Index current constant (1960 = 100) dollars dollars 1976:

I' II...

III..

~ 0 1,636;2 1,675.2 1,708.4 1,'246.3 1,260.0 1,271.7 6'2.6 169.2 171.0 172.

9.9 8.2 9.2 4.5 3.8 r = rev3.sed Source: U.S. Department of Commerce, 13ureau of Economic Analysis.

I CHART 6 . PERCFilT flEV I AT I C'l OF ACTUAL GHP FROIi POTENT I AL GHP g QUARTERLY'ACTUAL Aflfl POTEilTIAL GilP IN 1.72 DOLLAPS)

P","-,CE lT

+0 Q

~2 Q Q

" i:.

-2.0

-4.0

-G.p

-8.0

-10.0

-12.0

-14.0 1952 53 51 55 5G 57 58 59 60 61 62 63 6 1 65 gg 67 68 69 70 71 72 73 7g 75 7G SOURCE.'ABLE 6.

RRN Table 6 Page 1 of 3 Table 6. Actual GNP, Potential GNP, and Percent Deviation of Actual GNP from Potential GNi?,

Quarterly, 1952-76 (In billions of 1972 dollars, seasonally adjusted annual rate)

GNP Percent. deviation Year and quarter of actual GNP from Actual Potential potential GNP 1952:

I ~ ~ ~ ~ ~ 591. 3 584.6 +1. 15 II 592. 1. 589.G +0.42 III... o ~ ~

598. 594.7 +0.61 IV ~ ~ ~

3'12.5 599.9 +2.10 1953 I ~ ~ ~ ~ ~ 622.2 605 ' +2.83 II o ~ ~ ~ 626.2 610.3 +2.61 III.... 622.4 615.6 +l. 10 IV ~ ~ ~ ~ 616.4 620.9 72 '0.

1954:

I 608.1 626. 2 -2.89 II....

~

III...

~ ~ ~

605.6 631. 6 -4.12

-3.56 614.4 637. 1 IV o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 626.1 642. 6 -2.57 1955:

I 641. 1 648. 1 -1. 0'8 XI.... 650.8 653.7 -0. 44 XII... ~ o ~ ~ ~ ~ ~ ~ 660.3 659.4 +0.14 IV ~ ~ ~ 667.0 665.1 +0.29 1956:

I. 664.1 ,670.9 -1. Ol IX.... 667.5 676. 6 -l. 34 III...

IV 667.9 682.5 688.4

-2. 14

-1. 84 o ~ ~ ~ 675.7 1957:

I ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 680. 4 694. 3 -2.00 II 680.9 700. 3 2 77 III...

IV

~

o

~

~

~

~ ~

685.6 676.7 706.4 712.5

~

-2.94 5.02 1958:

I 663.4 718. 6 -7. 68 II....

~ ~

III....

~ ~

668.2 724.8 731.1

-7.81

-G. 3,9 684.4 IV.... ~ ~ ~ ~ ~ ~ ~ 702.1 737.4 -4.79 1959:

I ~ ~ ~ ~ ~ 710.7 743.8 -4.45 II o ~ ~ 726.3 750.2 '-3.,19 IXI... 718.6 756'. 7 -5. 04 IV...... 726.2 763.2 -4. 85 Continued--

~ ~

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~

~

~

~ ~

~ ~ '

~ ~

~ ~

~ ~

~ ~ ~ I C I

~ o l

~ ~

~ ~

' I ~ ~

~ ~

~ ~

~ ~

~ ~ ~

I I It ~ ~

I I ~ I I

~ ~

I ~

C ~

I ~

1 I ' ~

RRN Table 6 Page 3 'of 3 Table 6 (continued)

GNP Percent deviation Year and quarter of actual GNP from Actual Potential potential GNP 1969:

I.. 1,074. 8 1,065. 7 +0.85 II. 1,079. 6 1,076.2 +0.32 III IV.

1, 083. 4 1,086.8 1,097.6

-0.31

-1.83 1, 077. 5 1970:

I 0 ~ 1,073.6 1,108.4 -3. 14 XI. 1,074.1 1,119.3 -4.04 XII 1,082.0 '1,'130.3 -4.27 IV. 1,071.4 1,141.5 -6.14 1971:

I.. 1,095. 3 1,152.7 -4.98 Ii.

III 1, 103. 3 1,164.1 -5.22

-5.49 1, 111. 0 1,175.5 IV. 1, 120. 5 1,187.1 -5.61 1972:

X.. 1, 141. 2 1,198.8 -4.80 Ii.

IIX 1,163. 0 1,210.6 -3.. 93

-3. 65 1, 178. 0 1,222.6 IV. 1, 202. 2 1,234.6 -2. 62 1973:

I.. 1, 229. 8 1,246.8 -1.36 II. 1, 231. 1 1,259.1 2 22 III XV.

1,236. 3 1,242.6 1,271.5 1,284. 0 2

3

~

~

~

77 22 1974:

I.. 1,230. 4 1,296. 6 -5. 11 II. 1,220.8 1,309.4 -6.77

-8.27 XII 1,212.9 ] 382,3 IV.

1975:

~ ~ ~ ~ ~ ~ 1,191.7 l

1; 335. 3 -10 '5 I.. 1, 161. 1 1,348.5 -13.90 II 1, 177. 1 1,361.8 -13.56 III IV.

~

1,209.3 1,219.2 lg 375 1,388.

~ 2 8

-12.06

-12.21 1976:

I.. 1, 246.

1,260.0 3 1,401.6 1,414.6

-11.08

-10.93 IX III 1,271.7- -10.93 r = revised.

a/ The gap rcvcalcd herein is $ 156.0 billion expressed in 1972 dollars adjusted, for the rise in prices since 1972; th third quarter 1976 gap is $ 209-6 billion in current prices.

Source: U.S. Department of Commerce, Bureau nf Econom c Analvsim: The Council of Economic Advisers.

~ ~ ~

~ CH~ 7.~0h~ER ~CE~%)E~LLRRf'1~ON%(

r=<< -w g ~ w *- q w p f435EN ~{AilNSg AVERAGED OVER 3 HONTHSg SEASONALLY ADJUSTED ANNUAL RATES 1960-76 PERCENT 16 15 14 13 12 10 L

0 1960 61* 62 63 64 65 66 67 68 69 70 71. 72 73 74 75 76 SOURCE'. TABLE 7 ~

RRN Table

~age 1 of Table 7. Consumer Price Index, All Items: Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates, 1960-76 CPI, seasonally moving adjusted, average Year and. month month-to-month Month-to- Annual rate change-'hree-month rate of month rate of change of change 1959:

November.. 0.0 December.. 0.1 1960:

January... -0. 1 0. 00 0.0 February.. ~ ~ ~ ~ ~ 0.1 0.03 0.4 March..... -0. 0 0.00 0 0 April..... 0.5 0.20

~

2.4 May e ~ ~ ~ ~ ~ ~ 0.1 0.20 2.4 Juncta ~ ~ ~ 0.1 0.23 2.8 July..... ~ -0. 1 0.03 0.4 August.... 0.1 0.03 0.4 September. 0.0 0.00 0.0 October... 0.5 0.20 2.4 November.. 0.1 0.20 2.4 December.. 0.1 0.23 2.8 1961.

. January... 0.0 0.07 0.8 February.. 0.1 0. 07 0.8 March..... -0. 0.03 0.4 April..... 0'0.

1 0.00 0.0 May o ~ ~ ~ ~ ~ ~ 0.0 -0.03 -0.4 June...... -0. 0 -0.03 -0.4 July o ~ ~ ~ ~ ~ 0.3 0.10 1.2 August.... 0.0 0.10 1.2 September. 0.1 0.13 1.6 October... -0. 0 0.03 0.4 November.. 0.0 0.03 0.4 December.. 0.1 0.03 0.4 1962:

January. 0.1 0. 07 0;8 February 0.3 0. 17 2.1 March... 0.2 -0. 20 2.4 April... 0.1 0.20 2.4 May- . 0.1 0.13 1.'6 June.... ~ ~ ~ -0. 2 0.00 0.0 July.... 0.1 0.00 0.0 August.. 0.2 0. 03 0.4 Continued--

p<RN Table 7 Page 2 of 6 Table 7 (continued)

CPl, seasonally Three-month moving adjusted, average Year and month month-to-month rate of Month-to- Annual rate change .month rate of of change change-September. 0.5 0.27 October... -0. 1 0. 20 2.4 November.. 0.1 0. 17 2.1 December.. -0. 1 -0.03 -0.4 1963:

January... '0. 2 0. 07 0.8 February.. 0.1 0. 07 0.8 March..... 0.1 0. 13 1.6 April..... -0. 1 0. 03 0.4 May t ~ ~ ~ ~ ~ ~ 0 ~ ~ ~ ~ 0.1 0. 03 0.4 Juncos.100 0.3 0.10 1.2 Jul} o ~ ~ ~ ~ 0.3 0.23 2.8 August.... 0.1 0. 2.8 September. -0. 1 23'.

10 1.2 October.. ~ 0.1 0. 03 0.4 November.. 0.2 0. 07 0.8 December.. 0.3 0.20 2.4 1964:

January... 0.2 0.23 2.8 February.. -0. 1 0.13 1.6 March..... 0.1 0.07 0.8 April.....

May ~ o ~

June......

July......

~ ~ ~

O.l 0.1 0.1

-0.0 0.03 0.10 0.10 0.07 10'.3 0.4 1.2 1.2 0.8 August -0.0 0.03 0.4 September. 0.2 0.07 0.8 October... 0.1 0,. 10 1.2 November.. 0.2 0. 17 2.1 December.. 0.1 0.13 1.6 1965:

'anuary... O. 1 0.13 1.6 February.. ~ ~ ~ ~ ~ 0.0 0.07 0.8 March..... O. 1 0.07 0.8 April..... 0.3 0.13 1.6 May 0.3 0.23 2.8 June...... 0.4 0.33 4.0 July' ~ ~ -0. 0 0.23 2.8 August.... -0. 1 0. 1.2

.Continued--

l Hi' Table 7 Page 3 of 6 Table 7 (continued)

CPX, seasonally Three-month moving

. average adjusted, Year and month month-to-month lion th- to- Annual rate rate of month rate of change of change change-Septembe l e ~ ~ ~ ~ 0.2 0.03 0.4 October. ~ ~ ~ ~ e ~ ~ 1 0.1 0.07 0.8 November 0.3 0.20 2.4 December 0.4 0.27 3.3 1966:

January........ 0.1 0. 27 3.3 February 0.6 0. 37 4.5 March... 0.2 0. 30 3.7 April... 0.4 0.40 4.9 May e ~ ~ ~ ~ 0.2 0.27 3.3 June.... 0.1 0.23 2.8 July.... 0.2 0.17 2.1 August.. ~ ~ ~ ~ ~ ~ ~ 0.6 ~

0.30 3.7 Septembe r ~ ~ ~ ~ ~ ~ 0.2 0.33 4.0 October. 0.4 0.40 4.9 November 0.0 0.20 2.4 December 0.1 0. 17 2.1 1967:

January. 0.1 0. 07 0.8 February 0'. 2 0. 13 1.6 March... 0.0 0. 10 1.2 April... 0.2 0. 13 1.6 May ~ ~ ~ ~ ~ 0.2 0. 13 1.6 June.... 0.4 0.27 3.3 July... ~ 0.3 0.30 3'. 7 August.. 0.4 0.37 4.5 Septembe r e ~ ~ ~ ~ 0.3 0.33 4.0 October. 0.3 0.33 4.0 November 0.4 0.33 4.0 December 0.3 0.33 4.0 1968:

January ~ ~ ~ ~ ~ ~ ~ 0.4 0. 37 4.5 February 0.3 0. 33 4.0 March... 0.4 0. 37 4.5 April... 0.2 0. 30 3 '

May ~ - ~ e ~ ~ 0.4 0.33 4.0 June...., ~ ~ ~ ~ ~ ~ 0 5 0. 37 4.5 July.... ~ ~ ~ ~ ~ ~ 0.5 0.47 5.8 August.. 0.4 0.47 5.8 Continued--

BfcN Table Page 4 of Table 7 (continued)

CPI, seasonally Three-month moving adjusted, average Year and month month-to-month Month-to- Annual rate rate of month rate of change of'hange change-September. 0.3 0.40 4.9 October... 0.6 0.43 5.3 November.. 0.5 0.47 8 December.. 0.3 0.47 5.8 1969 January... 0.3 0. 37 4.5 February.. 0.5 0. 37 4.5 March..... 0.7 0. 50 6.2 April..... 0.6 0. 60 7.4 May o ~ ~ ~ ~ ~ ~ 0.4 0. 57 7.1 June...... 0.6 0. 53 6.5 July o ~ ~ ~ ~ 0.5 0. 50 6.2 August.... 0.5 0. 53 6.5 September. 0.5 0.50 6.2 October... 0.5 0.50 6.2 November.. 0.5 0.50 6.2 December.. 0.6 0.53 6.5 1970:

January... 0.5 0.53 6.5 E'ebruary.. 0.5 0.53 6.5 March..... 0.4 0.47 5.8 A'pri1..... 0.5 0.47 5.8 May ~ ~ ~ ~ ~ ~ ~ 0.5 0.47 5.8 June...... 0.3 0.43 5.3 July t ~ ~ ~ ~ ~ 0.3 0.37 4.5 August.... 0.3 0.30 3.7 September.

October...

0.4 0.5 0 '3 0.40 4.0 4.9 November.. 0.5 0.47 5.8 December.. 0.4 0.47 5.8 1971:

January. ~ ~ ~ ~ ~ 0.3 0.40 4.9 February 0.1 0.27 3.3 March... ~ ~ ~ ~ ~ ~ ~ 0.3 0.23 2.8 April... 0.3 0.23 2.8 May ~ r ~ ~ 0.5 0.37 4.5

/Juno....

Julyo 0.5 0.43 5.3

~ o ~ 0.2 0.40 4.9 August.. 0.2 0.30 3.7 Continued--

l<l<N Table. 7 Page 5 of 6 Table 7 (continued)

CPI, seasonally Three-month moving adjusted, average Year and month month-to-month Month-to- Annual rate rate of month rate of change of change change-a/

September. 0.1 0.17 2.1 October... ~ ~ ~ ~ ~ 0.2 0.17 2.1 November.. 0.2 ,0. 17 2.1 December.. 0.4 0. 27 3.3 1972:

January...

June' 0.2 0. 27 3.3 February.. 0.4 0. 33 4.0 March..... 0.2 0.27 3.3 Aprllo ~ ~ ~ ~ 0.2 0. 27 3.3 May....... 0.3 0. 23 2.8

... ~ . 0.2 0. 23 2.8 July e ~ ~ ~ ~ ~ 0.4 0. 30 3.7 August.... 0.2 0.27 3.3 September. 0.3 0. 30 3.7 October... 0.3 0. 27 3.3 November.. 0.3 0.30 3.7 December.. 0.3 0.30 3.7 1973:

January... 0.5 0. 37 4.5 February.. 0.6 0. 47 5.8 March..... 0.9 0. 67 8.3 April..... 0.8 0. 77 9.6 May ~ ~ ~ ~ ~ ~ ~ V ~ ~ ~ ~ 0.6 0.77 9.6 June' ~ 0 0.5 0.63 7.8 July...... 0.2 0.43 5.3 August.... 1.7 0.80 10.0 September. 0.4 0.77 9.6 October.. ~ 0.7 0.93 11.7 November.. 0.8 0. 63 7.8 December.. 0.7 0. 73 9.1 1974:

January. 1.2 0. 90 11.4 February 1.1 1. 00 12.7 March... 1.0 1. 10 14.0 April... 0.6 0.90 11.4 May ~ ~ ~ ~ ~ 1.1 0.90 11.4 June.... 0.8 0.83 10.4

~ '.y- ..~ 0.7 0.87 11.0 Augus t 1.3 0.93 11.7 Continued--

I l

I

lkl<N Ta bi( '.

Page 6 of Table 7 ( con tinued )

CPI, seasonally Three-month moving adjusted, average Year and month montn-to-month Month-to- Annual rate rate of month rate of change of change change-September 1.1 1. 03 13. 1 October.. 0.9 1. 10 14.0 Novembor. 0.9 0.97 12.3 December. 0.8 0.87 11.0 l975:

January.. 0.7 0.80 10.0 February. 0.5 0. 67 P.3 March.... 0.4 0.53 6.5 April,.... 0.5 0.47 5.8 May ~ ~ ~ ~ ~ 0.5 0.47 5.8 June..... 0.7 0.57 7.1 July..... 1.0 0.73 9.1 August... 0.4 0.70 8.7 September 0.4 0.60 7.4 October. ~ 0.6 0.47 5.8 November. 0.6 0.53 6.5 December. 0.5 0 57 7.1 1976:

January.. 0.4 0. 50 6.2 February. 0.1 0.33 4.0 March.... 0.2 0.23 2.8 April.... 0.4 0.23 2.8 Nay...... 0.6 0.40 9 June.... ~ 0' 0.50 6.2 July..-.. 0 5 0.53 6.5 August... 0.5 0.50 6.2 September 0.4 0.47 5 8 October.. 0.3 0.40 4.9 a/ Computed by averaging, for each month, seasonally adjusted ratr s of change for that month and the prcccding 2mant!>s (tha" is, a 3-month moving average, plotted on thc thirr',

month) and by converting to compound annual rates of change.

Source: U.S. Department of Labor, Bureau of Labor Statistics.

-I RRN CHART 8 CHART 8. CONSUMER PRICE INDEX -- ALL ITEMS AND FOODS MONTHLY PERCENT CHANGESJ AVERAGED OVER 3 MONTHS'EASONALLY ADJUSTED ANNUAL RATES, 1972-76 PERCENT 36 32 28

/i 24 i

I I

20 1 I l I

I I i I I

16 I Ii I l lI l 12 l

\

8

/

/

4 //

I I All items i I

i l I I 0

Food i

1 I

1I C u V W C u rr a, u 6 > c A u u w ~ c.u.> v crA u u 4c~ rr c u > rr c A 4 4 w c ~ ~ CI u > c A 4 '4 > c ~ N c, u ) rr A>

~ or 2 rr kc4wcrrr8=8 or 2<2coÃrrr8-8 4 ~ 2'c 2 4 4 4 ~ 8 ='

tp 4 "2 ~ 2 4 4 ~ 4 8 ='

1972 1973 1974 1975 1976 SOURCE: TABLES 7 AND 8

RRN Table S Page 1 of 2 Table 8. Consumer Price index, Food: Nonthly Percent Cnanges, Averaged Ovei 3 Months, Seasonally Adjusted Annual Rates, 1972-76 Three-month moving CPX, food, sea- average sonally adjusted, Year and month month-to-month Month-to- Annual rate rate of change month rate of of change change -~

1971:

November.. -0. 3 December.. 1.1 1972:

January.... -0. 4 0.33 4.0 February.. 1.2 0.63 7.8 March..... 0.0 0.27 3.3 APl Ma) l 1 o ~

o ~

~ ~

~

~

~

~

~

~

~ ~ ~ ~ ~ ~ ~

0.1 0.4 0.43 0.17 5.3 2.1 June ~ ~ ~ 0.2 0.23 2.8 July. 0.5 0.37 4.5 August.... 0.4 0.37 4.5 September. 0.6 0.50 6.2 October... 0.5 0.50 6.2 November.. 0.7 0.60 7.4 December.. 0.4 0.53 6.5 1973:

January... 1.7 0.93 11.7 February.. ~ ~ ~ ~ ~ ~ 1.4 1.17 15.0 March..... 2.4 1.83 24.3 APrl 1 o ~ ~ ~ ~ 1.7 1.83 24.3 Nay o ~ ~ ~ o ~ ~ 1.5 1.87 24.9 June...... 1.0 1.40 18.2 July o ~ ~ ~ ~ ~ o ~ ~ ~ ~ ~ ~ 0.2 0.90 11.4 August.... 6.1 2.43 33.4 September. -0. 3 2.00 26.8 October... 0.5 2. 10 28.3 November.. 1.3 0. 50 6..2 December.. 0.9 0.90 11. 4 1974:

January. 1.4 l. 20- 15.4 February March...

1.9 l. 40 18.2 0.8 1. 37 17.7 April... 0.0 0. 90 11.4 Nay o ~ ~ ~ ~ 1.1 0.63 7.8 June. '0. 1 0.40 4.9 July -0. 3 0.30 3.7 August.... '1. 5 0.43 5.3 Continued

RRN Table 8 Page 2 of 2 Table 8 (continued)

Three-month moving CPI, food, sea- average sonally ad-Year and month justed, month- Month-to- Annual rate to-month rate month rate of of change of change change-September. 1.8 1. 00 12.7 October 1.0 l. 43 18. 6 November.. 1.1 l. 30 16. 8 ~

December.. 1.0 1. 03 13.1 1975:

January...

June' 0.5 0.87 11. 0 February.. -0. 1 0.47 5.8 March -0. 3 0.03 0.4 April 0.2 -0.07 -0.8 Mayo ~ ~ ~ o o ~ 0.9 0.27 3.3

.oo.. 1.2 0.77 9.6 July o ~ ~ ~ ~ ~ 1.8 1. 30 16.8 August.... -0. 2 0. 93 11.7 September. 0.3 0.63 7.8 October... 0'. 9 0.33 4.0 November.. 0.6 0.60 7.4 December.. 0.6 0.70 8.7 1976:

January... -0. 2 0.33 4.0 February.. -1.0 -0.20 -2.4 March .. ~ -0.8 -0.67 -7.8 April 0.6 -0.40 -4.7 t 1ay. 1.0 0.27 3.3 June 0.2 0.60 7.4 July o ~ ~ ~ 0.1 0.43 5.3 August.... 0.3 0.20 2.4 September. 0.0 0.13 1.6 October 0.3 0 '0 2.4 rates of change for that month and the preceding 2 months (that is, a 3-month moving average, plotted on the third month) and by converting to compound annual rates of change.

Source: U.S. Department of Labor, Bureau of Labor Statistics.

RRN CHART 9 CHART g . CONSUMER PR ICF INDE>; ALL ITEMS'OMMODITIES LESS FOOD AND SERVICES, MONTHLY PERCENT CHANGES'VERAGED OVER 3 ADJUSTED ANNUAL RATES, 1972-76 MONTHS'EASONALLY PERCENT 32 28 24 20 Commodities less foods 16

/

/

/ K g/

/

12 /

1 items ~

See vices gC

'/

0 4

-12 4>C~PCu)V CAN@>C~QCu)Qcgla4>Ca~Cu cA La 4 ~CA COO 4 ) 0 CD 4 4 4 w VC 4 )

4 s". 2 c 2 4 ~ c o') 8 = 8 4 (" 2 c 2 ~ ~ ~ v') 8 =a 4 r" 2 c 24 ~ 2 4 8 = a 4~ 2 f24~ 24 8='8 4- 2 0244 Z 482 c Q

1972 1973 1974 1975 1976 SOURCE: TABLES 7, g "A/ AND g-B,

R:<N Table 9-A Pago 1 oF 2 Table 9-A- Consumer Price index, Commodities Less Food:

Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates, 1972-76 Three-month moving CP I, commodities average less food, sea-Year and month sonally adjusted, Month-to- Annual rate month-to-month month rate rate of change of change change-a/

1971:

November.. 0.1 December.. 0.2 1972:

January... 0.3 0. 20 2.4 February.. 0.2 0.23 2.8 March..... 0.1 0.20 2.4 April..... 0.2 0.17 2.1 May o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 0.3 0.20 2.4 Juneo ~ ~ ooo 0.0 0. 17 2.1 July o o ~ ~ ~ ~ 0.3 0. 20 2.4 August.... 0.3 0.20 2.4 September. 0.4 0.33 4.0 October... 0.2 0. 30 3.7 November.. 0.2 0.27 3.3 December.. 0.2 0.20 2.4 1973:

'anuary... 0.0 0. 13 1.6 February.. 0.4 0. 20 2.4 March..... 0.3 0.23 2.8 April..... 0.5 0.40 4.9 May ~ ~ ~ ~ ~ ~ ~ 0.3 0.37 4.5 June ~ ~ ~ ~ ~ ~ 0.3 0.37 4. 5 July o ~ ~ ~ ~ ~ 0.2 0.27 3.3 August.... 0.3 0.27 3.3 September. 0.2 0.23 2.8 October... 0.6 0.37 4.5 November.. 0.8 0.53 6 '

December.. 0.9 0.77 9.6 1974:

January. 1.3 1.00 12. 7 February 1.0 1.07 13. 6 March... 1.3 1.20 15.4 April... 0.8 1.03 13.1 May.. 1.2 1. 10 14.0 June.... 1.2 1. 07 13.6 July 1.1 1 17 15.0

l. 23

~

August.. ~ ~ ~ ~ ~ ~ ~ 1.4 15.8 Continued--

"v '"aolc Page'. 2 nf 2 Table 9-A (continued)

CP I, commodities Three-month moving less food, sea- average Year and month sonally adjusted, Month-to- Annual rate month-to-month month rate of rate of change of change change-September 0.9 1. 13 14.4 October.. 0.8 l. 03 13.1 November. 0.8 0.83 10.4 December. 0.6 0.73 9.1 1975 January.. 0.6 0. 67 8.3 February. 0.7 0.63 7.8 March.... 0.6 0.63 7.8 April.... 0.5 0. 60 7.4 May o ~ ~ ~ ~ 0.3 0.47 5.8 Juneau .. ~ 0.4 0.40 4 9 July'. ~ oo 0.9 0.53 6.5 August... 0.6 0.63 7.8 September 0.3 0.60 7.4 October.. 0.3 0.40 4.9 November. 0.3 0.30 3.7 December. 0.4 0. 33 4. Q 1976:

January.. 0.2 0. 30 3.7 February. 0.3 0.30 3.7 March.... 0.3 0 ~ 27 3.3 April.... 0.3 0. 30 3.7 May ~ ~ ~ ~ ~ ~ ~ 0.6 0.40 4.9 June..... 0.5 0.47 5.8 July..... 0.6 O.S7 7.1 August... 0.6 Q.S7 7.1 September 0.4 0.53 6.5 October.. Q.4 0.47 5.8 a/ Computed by averaging, for each month, seasonally adjusted rates of change for that month and the preceding 2 months (that is, a 3-month moving average, plotted on the third month) and by converting to compound annual rates of change.

Source: U.S.. Department of Labor, Bureau of Labor Statistics.

RRN Table 9-B Page 1 of 2 Consumer Price Index, Services: Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates,

'1972-76 Three'-month moving CPX, services, average seasonally ad-Year and month justed, month- Month-to- Annual rate to-month rate month rate of

of change of change change-,

1971:

November. 0.3 December. ~ ~ ~ ~ ~ ~ ~ 0.2 1972:

January.. 0.5 0;33 4.0 February. 0.3 0.33 4.0 March.... 0.2 0.33 4.0 April.... 0,4 0.30 3.7 May o ~ ~ ~ ~ ~ 0.3 0.30 3.7 June..... 0.2 0.30 3.7 July o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 0.3 0.27 3.3

'ugust. ~ ~ 0.2 0.23 2.8 September 0.1 0.20 2.4 October.. 0.4 0.23 2.8 November. 0.2 0.23 2.8 December. 0.3 0.30 3.7 1973:

January.. 0.1 0.20 2.4 February. 0.4 0.27 3.3 March.... 0.4 0.30 r.7 April.... 0.4 0 '0 0.43 4.9 5.3 May ~ ~ ~ 0.5 June. ...

~ ~ ~

~ 0.4 0.43 5.3 July..... 0.2 0.37 4.5 August... 0.6 0.40 4.9 September 0.9 0.57 7.1 October. ~ 1.1 0.87 11. 0 November' 0.5 0.83 10. 4 December. 0.6 0.73 9.1 197 4:.

January.. 0.8 0. 63 7.8 February. 0.8 0. 73 9.1 March.... 0.9 0.83 10.4 April.... ~ ~ ~ ~ ~ ~ 0.7 0.80 10.0 11.4 May ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 1. 1 0. 90 June ~ ~ ~ ~ ~ 0.9 0 90

~ 11.4 July o ~ ~ ~ ~ 1.'1 1. 03 13. 1 August... 1.0 1. 00 12.7 Continued--

".;?1 Table 9-L

>age 2 of 2 Table 9-B (continued)

CPI, services, Three-month moving seasonally ad- average

. Year and month justed, month- Month-to- Annual'a.te to-month rate month rate of of change of change change-a/

September 1.0 1.03 13.1 October.. ~ ~ ~ 0 ~ ~ ~ 0.9 0.97 12.3 November. ~ ~ ~ ~ ~ ~ ~ ~ 0.8 0.90 11.4 December. ~ 0 ~ ~ ~ ~ ~ ~ 0.8 0. 10.4 1975: 83'.83 January.. 0.9 10.4 February. 0.8 0.83 10.4 March.... 0.6 0.77 9.6 April.... 0.6 0.67 8.3 May ~ ~ ~ ~ ~ ~ 0.4 0.53 6.5 June..... 0.7 0.57 7.1 July..... 0.5 0.53 6.5 August... 0.4 0.53 6.5 September ~ ~ ~ ~ ~ ~ ~ 0.8 0.57 7.1

. October.. 0.6 0.60 7.4 November. 1.0 0.80 10. 0 December. 0.6 0.73 9.1 1976:

January.. 1.1 0.90 11.4 February. 0.7 0.80 10.0 March.... 0.7 0.83 10.4 April.... 0.5 0.63 7.8 Hay ~ ~ ~ ~ ~ ~ 0.4 0.53 6.5 June..... 0.6 0.50 6.2 July..... 0.6 0.53 6.5 August.;. 0.6 0.60 7.4 September 0.5 0.57 7.1 October.. 0.5 0.53 6.5 V

ratos of change for that month and the pre.coding 2 months (that is, a 3-month moving average, plottod on the third month) and by convert'ing to compound annual rates of change.

Source: U.S. Department of Labor, Bureau of Labor Statistics.

1 RRN CHART 10 I

}

L:} CHART 10, WHOLESALE PRICE INDEX -- ALL COMMODITIES,'NDUSTRIAL COMMODITIES~ AND FARM PRODUCTS, PROCESSED FOODS'ND PERCENT CHANGES'VERAGED OVER 3 FEEDSr'ONTHLY ADJUSTED ANNUAL RATES'972-76 MONTHS'EASONALLY PERCENT 110 il00 i90 80 "70 il

'60 il

~

~

~

~

50

/

40 Farm i >/i 30 ~

I Al 1 20 I I ~

I10 A rr.

Industrial

-.10

-20

~ ~

-30 Cll '44)Cm I)Ogle) )V Cl7 4 4 ) C~ Clltru ) V 44+CWOI Okl )VC+4 4)C ~ O'C>)VCCI 44)CWVC4J)V aoaoaoccovooaoacaoocoVOoaoqcqoooovvo 4~2~24~c482o a o a a c c o o v o o

%4eXA'XCN(IOOCI ZC2gvcolorcl qr razes(olo-cI <4rc2ooa:olo-cl 1972 1973 1974 1975 1976 SOURCE: TABLES 10-Ap 10-B AND 10-C

RRN Table 10-A Page 1 of 2 Table 10-A. Wholesale Price Index, All Commodities:

Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates, 1972-76 NPI, seasonally Three-month moving adjusted, average Year and month month-to-mont.h lion th- to- Annual rate rates of month rate of change of change change-1971:

"'ova'mbe L 0.3 December 0.8 1972:

January. Q 0. 43 .') ~ .i February 0. 0. 50 G.?

March... 5'.2

0. 30 3.7 April... 0.2 0. 30 3. I May..... 0.6 0. 33 4.0 June.... 0.3 Q. 37 July.... p 5 . 0.47 5.8 August.. 0.6 0. l7 Scptcmbc r ~ ~ ~ ~ ~ ~ p.4 0.50 (). 2 October. ~ ~ ~ ~ ~ ~ 0.2 n. lp 9 November 1.0 0 53 6.5 Junco December 1.7 0.97 12.3 1973:

0'. 8 3.. 17 15.0 January'ebruary March...

1.6 l. 37 17.7 2.3 1 57 20.

April...

C) 0.6 1. 50 19. C>'

~lay.....

... 2.1 l. 67 July....

~ ~ ~ ~ ~ ~ ~

-3 1.8 l. 50 19. Ci 5 0.80 3,0 ~ 0 AucJus t. 6.1 2.13 28.8 Se;> tembe -1.'l 1.07 13. (i October. Q 1.50 19. 6 November 0.9 -0.23 2.7 December 1.G 0.77 9 ~ 6 1974:

JatlLl February lry

• 2 9 l. 80 23. 9 3.6 2.03 March April...

~ ~ l. l 1.97 26. ~)

0.8 3.. 27 16.4 i~4l y June.....

1.5 l. 23 15.8 0.2 0. 83 3.0. 4 Ju3y.... 3.6 1. 77 23.4 Au~jus t .. 3.7 2.50, 34 e Sep tembe r ~ ~ 0. 2. 2 50 34.5 Contxnucd--

BRN Table 10-A Page 2 of 2 Table 10-A (continued)

HPI, sc<<sonally Three-mon th moving adjust.<d, <<vc rage Year and month month-to-month I'ion t.h- to Annual rate rates of month rate of ch<<ncjc of change change-

\

October. . ~ 2.2 2.03 27 3 Novcmbcr. 1.4 1. 27 16.4 December.

1975:

-0. 3 l. 10 14.0 January .. -0. 2 0. 30 3.7 I'bruar 4 -0.7 -0.40 -4.7 March.... -0.5 -0.47 -5.5 April.... 0.9 -0.10 LE 2 Hay...... 0.6 0.33 .0 June..... 0.0 0.50 6o2 July o ~ ~ ~ ~ 0.8 0.47 5.8 August... 0.9 0.57 7.1 September 0.9 0. 11.0 October.. 1.1 87'.97 12.3 Novcmbcr. ~ ~ ~ ~ ~ ~ 0.1 0.70 8.7 December. 0.3 0.50 '

6.2 1976:

January.. -0. 2 0.07 0.8 Fcbrual) -0. 4 -0. 10 -l. 2

!<arch.... 0.2 -0. 13 -1. 5 April.... 0.8 0. 20 ilay t ~ ~ ~ ~ , 0.3 0. 13 5.3 J u'nc ~ .. 0.4 0. 50 July.... 0.3 0.33 4.0 August...

September

-0.1 0.9 0 '0 0.37 2.4 4.5 October.. 0.6 0.,47 5.8 a/ Compute>ally adjusted r<<tcs of changi'or that month and thc prcccd.in' montl;s (that is, a 3-month moving <<vcragc, plott< d on thc third

.month) and I>y'converting to compound annua1 rates of change.

Source: U.S. Department of Labor, Bureau of Labor Statistics.

RRN Table 10-8 Page 1 of 2 Table lO-B. Wholesale Price Index, Industrial Commodities:

Monthly Percent Changes, Averaged Over 3 Months, Seasonally Adjusted Annual Rates, 1972-76 WPI, industrial Three-month moving "commodities, average seasonally Year and month adjusted, month- Month-to- Annual rate to-month rate of month rate of change of change change-1971:

November... O. 1 December... 0.6 1972:

January.. 0.2 0. 30 3:7 February. 0.3 0. 37 4.5 March.. ~ . 0.2 0.23 2.8 April.... 0.2 0.23 2.8 tray ~ ~ ~ ~ ~ ~ 0.3 0.23 2.8 June..... 0.3 0.27 3.3 Julyo ~ ~ ~ ~ 0.3 0. 30 3.7 August... ~ ~ ~ ~ ~ ~, ~ 0.4 0. 33 4.0 September 0'. 3 0.33 4.0 October.. 0.3 0. 33 4.0 November. 0.5 0. 37 4.5 December. 0.4 0.40 4.9 1973:

January.. ~ ~ ~ ~ ~ ~ ~ 0.2 0.37 4.5 February. 0.8 0.47 5.8 March.... 1.1 0.70 8.7 April.... 0.8 0.90 11.4 May ... 0.8 0.90 11.4 June.. 0.6 0.73 9.1 July....

August...

~ 0.2 0.6 0 '3

0. 47 6.5 5.8 September 0.8 0.53 6.5 October.. 1,.0 0.80 10.0 November.

December.

1.6 l. 13 14.4 1.8 1. 47 19.1 19"4 Januar Y ~ ~ ~ ~ ~ ~ ~ ~' 2.2 1. 87 24.9 Fcbrua ry ~ ~ ~ ~ ~ ~ ~ ~ 1.8 1. 93 25.8 t,larch. 2.8 2. 27 30.9 April. 2.6 2.40 32.9 May... 2.5 2.63 36.6 June.. 2.0 2.37 32.5 July.. 2.8 2.43 33.4 August 2.5 2.43 33.4 Continued--

RRN Table 10-B Page 2 of 2 Table 10;B (continued)

WPX, indus trial Three-month moving commodities, average

-Year and month seasonally adjusted, month- Month-to- Annual rate to-month rate of month rate of change of change change September. 1.1 2.13 28.8 October... 1.5 1.70 22.4 November.. 0.9 l. 17 15 ..0 December.. 0.4 0,. 93 ll. 7 1975:

January... 0.8 0.70 8.7 February.. 0.1 0.43 5.3 March..... 0.1 0.33 4.0 Aprl1 o ~ ~ o 0.2 0.13 1.6 May o ~ ~ ~ ~ ~ ~ 0.2 0.17 2.1 June...... 0.2 0.20 2.4 July o ~ ~ ~ ~ 0.4 0.27 3.3 August.... 0.7 0.43 5.3 September. 0.9 0.67 8.3 October... ~ ~ ~ ~ ~ ~ 1.2 0 03 11.7 November.. 0.7 0.93 Ll.7 December.. 0.6 0.83 10.4 1976:

January... 0.4 0.57 7.4 February.. 0.1 . 0. 37 4 '

March..... 0.3 0.27 3.3 April..... 0.3 0. 23 2.8 May....... 0.1 0. 23 2.8 June...... 0.5 0. 30 3.7 July o ~ ~" ~ ~ 0.7 0. 43 5.3 August.... 0.7 0. 63 7.8 September. 0.9 0.77 9.6 October... 1.0 0.87 11.0 a/ Computed by averaging, for each month, seasonally adjusted tates oi chanqe for that: month and the preceding 2 months (that is, a 3-month moving average, plotted on the third month) and by convertinq to compound annual rates of change-.

Sou'e're: 'U.S. Department of Laboi, Bureau of Labor Statistics.

RBf0 Table Page 1 of Table 10-C. Wholesale Price Index, Farm Products and Processed Foods and Feeds: Monthly Percent Changes, Averaged Over 3 Months Seasonally Adjusted Annual Rates, 1972-76 WPX, farm prod- Three-month moving ucts & processed average Year and month foods and feeds, seasonally a'dj., Non th- to- Annual rate month-to-month month rate of ~

rate of change of change change-1971:

November.

December. 1.3 1972:

January.. 0.2 0. 87 11.0 February'riarch....

~ ~ ~ ~ ~ 1.1 0. 87 11.0 0.2 0.50 6.2 April.... 0.1 0.47 5.8 Nay o ~ ~ ~ ~ ~ 1.5 0. 60 7.4 June..... 0.3 0. 63 7.8 July o ~ ~ ~ ~ 1.1 0. 97 12.3 August... 1.0 0. 80 10.0 September 0.8 0.97 12.3 October..

January' 0.0 0.60 7.4 November. 2.3 1. 03 13.1 December. 5.0 2.43 33.4 1973:

. 2.1 3. 13 44. 8 February. 3.4 3. 50 51. 1 Narch.... 5.2 3.57 52.3 April.... O. 1 2.90 40.9 Ma y ~ o ~ ~ ~ ~ 4.8 3. 37 48.8 June..... 4.7 3. 20 45.9 July..... -5 3 1.40 18.2 August... 18. 5 5.97 100.5 September -5. 6 2.53 35.0 October.. 2 7

~ 3.40 49.4 November. -0. 8 -3. 03 -30.9 December. 1.3 -0. 73 -9.1 1974:

January.. 4.6 l. 70 22.4 F'ebruary. 1.1 2. 33 31.8 March..., -l. 7 1 33 17.2 April.:..

~

-3. 1 1 ~ 23 -13.8 Nay ~ ~ ~ ~ ~ ~ -0. 9 -1.90 -20.6 June..... -4. 1 -2.70 -28.0 July..... 5.6 0.20 2.4 August... 6.7 2.73 38.2 Continued--

RRN Table 10-C Page 2 of 2 Table 10-C (continued)

WPX, farm prod- Three-month moving ucts & processed average foods and feeds, Year and month sea onally adj., Month-to- Annual rate month-to-month month rate of rate- of, change of change change-September. -1.9 3. 47 50.6 October... 4.1 2.97 42.1 November.. 2.6 1 ~ 60 21.0 December.. -1. 9 1. 60 21.0 1975:

January... -2.5 -0. 60 -7 0 February.. 2 ~ 7 2 ~ 37 -25.0 March..... ,1.9 2 37 -25.0 April.....

%

3 ~ 0 -0. 53 -6.2 May t ~ ~ ~ ~ ~ ~ 1.8 '0.97 12.3 June ~ ~ ~ ~ ~ e -0. 5 1.43 18.6 July' ~ ~ ~ ~ 1.9 1.07 13.6 August.... 1.3 0.90 11.4 September. 1.1 1.43 18.6 October... 1.0

-1. 5

l. 13 14.4 November.. ~ ~ ~ 0.20 2.4 December. ~ -0. 6 -0.37 -4.4 1976:

January. -2. 1 -1.40 -15.6 February -1.9 -1.53 -16. 9 March... -0. 2 -1.40 -15.6 April... 2.8 0.23 2.8 May. 1.0 1.20 15. 4 June.... .0. 4 1 ~ 40 18. 2 July.... -1. 0 0.13 1.6 August .. -2. 9 -l. 17 -13. 2 Septembe 1.0 -0.97 -11.0 October. -0.9 -0.93 -10.

6'/

Computed by averaging, for each month, seasonally adjusted (that i, rates of change for that month and the preceding 2 months a 3-month moving average, plotted on the third month) and by converting to.compound annual rates of change.

Source: U.S. Department of Labor, Bureau of Labor Statistics.

M E OF COST-OF-LIVING ESCALATOR PROVISIONS IN HAJOR UNIO CONTRACTS, 1960-76 t(0 OF I'iORKERS (fN flfLL[ONS) 10 O

It$

L 00 0

6 L

'? Ao 0

<<<<4'x F

L

<<V

'r L

Cl

<<?i@/

L

'Xj4 0 L 0

gC L

"'<<:?"

<<?'. c p~Q $ ~<<'. 0 QP ~

L

")sx$

."??,'5 r'Qp <<i<<. r : <<+%

0 0 <<r?

@+4 " '.<< v?r.ri QP t

5'5-i???XP C'> " ,c$j?'I r.

':PQg 0~~ 0L

<<? <<r?

?r:.

y??r?, gg> Ql (9 IA V

0

?~; 'r<<'<<ip: re>Pi 00' 0O 0L 64 6g 66 67 68 76 SOURCE.'TABLE 11?

Table ll. Coverage of Cost-of-Living Escalator provisions in Major Union ontracts, 1960-76 (Number of workers'n millions)

Number of workers . Percent of mayor Number of workers under major contract Year under major contracts covered workers contracts- / by escalators, covered by January 1 escalato-s 1960...... 8.1 4.0 49.4 1961...... 8.1 2. 7-/ 33.3 1 962' ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 8.0 2.5 31.3 1963.... 7.8 1.9 24.4 1964... 7.8 2.0 25.6 1965 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 7.9 2.0 25.3 1966 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 10. 0 2 ' 20.0 1 967 ~ ~ ~ ~ ~ ~ ~ ~ o ~ t ~ ~ ~ ~ ~ ~ ~ 10. 6 2.2 20.8 1 968 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ 10. 6 2.5 23.6 1 9 69 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 10. 8 2.7 25 '

1970 10. 8 2.8 25 '

1971 10. 6 3.0 28.3 1 972 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 10.4 4.3 41.3 1973... 10.5 4.1 39.0 P ~

1974.... 10.3 4.0 38. 8 1975 10.2 5.1 50.0 8 1976.. ~ . 10.2 5.9 57.8 U.'

I wQ a/ Contracts covering 1,000 workers or more in private industry. Prior to 1966 the construc-tion, service, finance, insurance, and real estate industries were excluded.

b/ Midpoint in range of BLS estimate, for number of workers covered rounded to nearest one-tenth of 1 million.

Source: U.S. Department of Labor, Bureau of T.abor Statistics.

CHART 12 INDEXES OF CONSUMER PRICES AND HOODY S AYERAGE CORPORATE BOND YIELDSI ANNUALLY/ 1960-75, AND NONTHLY, 1972-76

-INDE>< (1960=100)

-240 240 220 220 Moody's average corporate bond yields 200 Moody's average corporate 200 bond yields I 180 180 160 160 CPI i 140 140 120 CPI 120 100 100 80 80 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 1972 1973 1974 1975 1976 ANNUALLY MONTHLY SOURCES TABLE 12.

RRN Table 12 Page 1 of 2 Table 12. indexes of Consumer Prices and of Moody's Average-Corporate Bond Yields, Annually, 1960-75, and Monthly, 1972-76 Average-a Corporate Year and month Consumer Price index: Bond Yields 1960=100 Percent index:

1960=100 Annual 1960, . 100.0 4.73 100. 0 1961.. 101.0 4.66 98. 5 1962.. 102.1 4.62 97. 7 1963.. '103. 4 4.50 95.1 1964;. ~ 0 ~ ~ ~ ~ ~ ~ ~ 104. 7 4.57 96.6 1965.. 106.5 4.64 98.1 1966.. 109.6 5.34 112.9 19'67.. 112.7 5.82 123.0 1968.. 117.5 6.51 137.6 1969.. 123.8 7.36 155.6 1970.. 131.1 8.51 179.9 1971.. 136.8 7.94 167.9 1972.. 141.3 7.63 161.3 1973.. 150.1 7.80 164.9 1974.. 166.5 8.98 189.9 1975.. 181.7 9.46 200.0 N~onthl 1972:

January.. 138.9 7;66 161.9 February. 139.6 7. 68 162.4 March.... 139.8 7.66 161.9 April.... 140. 1 7.71 163.0 May o ~ ~ ~ ~ ~ 140. 6 7.71 163.0 June..... 140. 9 7.66 161.9 July e ~ ~ ~ o 141. 5 7.66 161.9 August... 141. 7 7.61 160.9 September 142. 3 7.59 160.5 October.. 142.7 7.59 160.5 November. 143.1 7.52 159.0 December. 143.5 7.47 157.9 1973:

January.. 144.0 7.49 158.4 February. 145.0 7.57 160.0 March.... 146.3 7.62 161.1 April.... 147.4 7.62 161.1 May e ~ o ~ e ~ 148.3 7.62 161.1 June.... ~ ~ ~ ~ ~ 149.3 7.69 162.6 July s ~ o ~ 149.6 7.80 164.9 August... 152.3 8.04 170.0 Continued--

RRN Table 12 Page 2 of,.; 2 Table 12. (continued)

Average-a/ Corporate Consumer Price Index:

'ond Yields Year and month 1960=100 Percent

~

Index:

1960=100 September. 152.8 8.06 170. 4 October... 154.0 7.96 168.3 November.. 155.1 8.02 169.6 December.. 156.1 8.05 170.2 1974:

January... 157.5 8. 15 172.3 February.. 159.5 8. 17 172.7 March..... 161.3 8.27 174.8 April..... 162.2 8.51 179.9 May o 164.0 8.68 183.5

....

~ ~ ~ ~ ~ ~

June. ~ 165.6 8.85 187.1 July o ~ ~ ~ ~ ~ 166.9 9.10 192.4 August.... 169.0 9.36 197.9 September. 171.0 9.67 204.4 October... 172.5 9.80 207.2 November.. 174.0 9.60 203.0 December.. 175.2 9.56 202.1 1975:

January... 176. 0 9. 55 201.9 February.. 177.2 9.33 197.3 March..... 177.9 .9.28 196.2 Aprl1 ~ ~ ~ ~ ~ 178.8 9.49 200.6 May e ~ ~ ~ ~ ~ ~ 179.6 9.55 201.9 June ~ ~ ~ 181.1 9.45 199.8 July e ~ ~ o ~ ~ 183.0 9.43 199.4 August.... 183.5 9.51 201.1 September. 184.4 9.55 201.9 October... 185.6 9.51 201.1 November.. 186.7 9.44 199.6 December.. 187.5 9.45 199.8 1976:

January... 187.9 9. 33 197. 3 February.. 188.4 9.23 195. 1 March..... 188.8 9. 18 194. 1 April..... 189.6 9.04 191. 1 Mayo o ~ ~ ~ ~ ~ 190.8 9.06 191. 5 June...... 191.8 9.05 191.3 July o ~ ~ ~ 192.9 8.97 189.6 August.... 193.8 8.85 187.1 September. 194.6 8.72 184.4 October... 195.4 8.63 132.5 a/ Simple average of Aaa, Aa, A, and Baa yields on seasoned bonds.

Sources: CPI data from U.S; Department of Labor, Bureau of Labor Statistics.

Bond yields from Moody's Investor's Service.

CHART 1 3 I NTEREST COSTS ON LONG TERN DEBTS CPK Li AH! IUALLYi 1 9 60- 7 6 PERCENT 12 I

/I 10 I5 I

I I

New debt 1

b r~

r ~r a

I Embedded debt 0

1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 Note: No long-term debt was issued in 1962, 1963, 1965, and 1969.

SOURCE'TABLE 13.

RRN Table 13 Page 1 of 1 Table 13. Interest Costs on New and Embedded Long-Term Debt, CP&L, Annually, 1960-75 Differential between Year Embedded debt New debt embedded and new debt

---

percent---- -- -pct. points----

1960......... 3.62 4.92 1.30 1 96 1 ~ ~ ~ ~ ~ ~ ~ 3.76 4.54 0.78 1962 ~ ~ ~ ~ ~ ~ ~ ~ ~ n.a.

1963 ~ ~ ~ ~ ~ ~ ~ ~ ~ n.a.

1964 ~ ~ ~ ~ ~ o ~ ~ ~ 3.87 4.50 0.63 1965 ~ ~ ~ ~ ~ ~ ~ ~ ~ n.a.

1966......... 4.04 5. 18 l. 14 1967......... 4.40 '6. 45 2.05 1968 ~ ~ ~ ~ ~ ~ ~ ~ 4.72 6. 87 2.15 1 9 69 ~ ~ ~ ~ ~ ~ ~ ~ ~ n.a.

1 970 ~ ~ ~ ~ ~ ~ ~ ~ ~ 5. 64 '8. 85 3.21 1971......... 6. 14 7. 78 1.64 1 972 ~ ~ ~ ~ ~ ~ ~ ~ 6.40 7. 81 1.41 1 973 ~ ~ ~ ~ ~ ~ ~ ~ ~ 6.77 8.10 1.33 1 974 ~ ~ ~ ~ ~ ~ ~ ~ ~ 7.17 9.88 3.11 1975 ~ ~ ~ ~ ~ ~ ~ ~ 7.72 11.27 3.55 Note: Based on mortgage bond indebtedness. Mortgage bonds have constituted virtually all long-term debt for the years covered; for example, 96 percent in 1975'. Embedded debt: is based on weighted average cost to Company as of end of year. No iong-term (mortgage bond) debt was issued in 1961, 1963, 1965 and 1969.

Source: Carolina Power and Light Company.

s I . [: PO~E

~HA~4.~EN t . i

%%R I 8I

<<

S~:  %%)S~OCQRi ~YP~

'NNUALLY, 1971-75, AND QUARTERLY AT ANNUAL RATES, 1974-76 S BILLIONS 65

".otal issues 60 ANNUAL DATA QUARTERLY DATA AT ANNUAL RATES f~

I  :

stocks privately

~

p la c ed bonds

~

.55  !

publ icly I

'-"'-"-: offered bonds i

50 IW I 45 40 r

35 30 <<W ~

<<

25 X 20 gN Yg

<<5Q A$ ~.

10

)

g5 c

AS

/

+S.

0 1971 72 73 74 75 1 2 3 2 3 2 3 1974 1975 1976 SOURCE '.

TABLE 1'.4.--

RRN Table 14 Page,l of 1 Table 14. New Corporate Security Issues: Gross Proceeds, by Type of Issue, Annually, 1971-75, and Quarterly at Annual Rates, 1974-76 (Xn millions of dollars)

Gross proceedsa / by type of issue Year and quarter Bonds Common Total and Publicly Privately preferred offered placed stock A~nnuall 1971 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 44,914 24,790 7,209 12,915 1972 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 40,228 17,425 8,706 14,095 1 973 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 32,025 13,244 7, 802 10,979 1974........... 38,311 25,903 6, 160 6,247 1975 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 53,638 32,603 10,157 10,878 4

.Quarterly at annual rates 1974:

I ~ ~ ~ ~ ~ 37,572 23,904 6,564 7, 104 XI.... 37,140 23,856 7,152 6, 132 III...

XV....

30,436 48,092 20,440 35,412 4,892 6,032 5, 104 6,648 1975' I ~ ~ ~ ~ 61, 160 43,396 9,400 8, 364 II ~ ~ ~ ~ 62,828 42,040 6,380 14,408 IXI... 38,232 21,712 8,304 8,216 IV.... 52,332 23,264 16,544 12,524 1976:

I ~ ~ ~ ~ 55,328 30,216 10,936 14,176 55 456 29,680 13,352 12,424 II*b/. 34,400 18,000 8,800 7,600 a/ Gross proceeds are derived by multiplying principal amounts or number of units by offering price.

b/ Based on preliminary monthly figures to June through August and forecast figures for September.

Source: Securities and Exchange Commission. Annual SEC data are reported in various issues of the Federal Reserve Bulle-tin, 1976; quarterly data calculated from data from issues of Federal Reserve Bulletin for July and August 1976, and from monthly data for 1976 provided by SEC.

CIIART 15. INDEXES OF CONSUMER PRICES, RATE OF RETURN ON YEAR-END COMMON EQUITY CAPITAL'F CP < L/ AND AVERAGE PRICE OF CP8t L COMMON STOCK/

ANNUALLY, 1960-75 INDEX (1960=100) 240 220 /

/

//

200 180 Average price of CP8L

'PI common stock 160 /

/ /

/

140 120

~ H

~ M 100 M

! Rate of return on CP8L ~ M ~

80 year-end common equity capital 60 0

1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 SOURCE'TABLE 15..

Table 15. Indexes of Consumer Prices, Rate of. Return on Year-End Common Equity Capital of CP&L, and Average Price of CP&L Common Stock, Annually, 1960-75, and June 1976 Rate of return on year-end Average price of Consumer Price Index common equity capital of CP&L common Year CP&L stock Price per lo60 1967=100 1960=100 Percent 1960=100 sharea/ 100 1960. 88.7 100.0 11.15 100.0 20.06 100.0 1961. 89.6 101.0 10.80 96.9 27.39 136.5 1962. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 90.6 102.1 11.57 103.8 28.36 141.4 1963. ~ ~ ~ ~ ~ ~ ~ ~ 91.7 103.4 11.63 104.3 33.52 167.1 1964. 92.9 104.7 12.08 108.3 39.11 195.0 1965. 94.5 '106; 5 13.00 116.6 45.33 226.0 1966. 97.2 109.6 12.39 111.1 45.03 224.5 1967. 100.0 112.7 12.20 109.4 40.58 202.3 1968. 104.2 117.5 12.13 108.8 38.38 191.3 1969. 109.8 123.8 10.77 96.6 , 34.80 173.5 1970. '16.3 131.1 7.86 70.5 26.09 130.1 1971. 121.3 136.8 9.84 88.3 25.13 125.3 1972. 125.3 141.3 11.48 103.0 26.98 134'. 5 1973. 133.1 150.1 10.05 90.1 24.51 122.2 1974. 147.7 166.5 9.41 84.4 16.00 79.8 1975. 161.2 181.7 94.2 16.46 82.1 June 1976...... 170.1 191.8 10.SOb/

11.41- 102.3 / 18.87 94.1 a/ Annual average of monthly averages of highs and lows.

b/ Twelve months ending June 30, 1976.

Source: CPI -- U.S. Department of Labor, Bureau of Labor Statistics-.

Rate of return and stock prices -- Carolina Power and Light Company.

CHART 16. RELATIONSHI P OF YEAR-END MARKET PRICE TO YEAR-END BOOK VALUE OF CONNON STOCKy CP< Lg ANNUALLY' 960-75 DOLLARS 50 Year-end market price.

40 per share 35 30 25 20 Year-end book value per share 15 10 5

0 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 I

SOURCE'. TABLE I6 ~

RRN Table 16 Page 1 of 1 Table 16. Relationship of Year-End Market Price to Year-End Book Value of Common Stock, CPGL, Annually, 1960-75, and 12 Months Ending June 1976 Year-end market Year-end book Ratio of year-end market, Year price per value per price to share share book value dollars-- ---

1960 ~ ~ ~ ~ ~ ~ ~

'o i ~ ~ 22.25 10.35 2.15 196 1 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 29.38 11.19 2.63 1962 31. 19 11.65 2.68 1 963 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 35.38 12.16 2.91 1 964 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 42.38 13.29 3.19 1965 48.50 13.91 3.49 1 966 ~ ~ ~ ~ ~ ~ ~ ~

~ ~ ~ 44.25 15.16 2.92 1 967 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 40.88 15.73 2.60 1 968 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 36.75 16.38 2.24 1 969 ~ ~ ~ ~ ~ ~

'

~ ~ ~ ~ 32.50 17.95 1.81 1 970 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 26.25 18.35 1 43

~

1971 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 25.00 19.05 1.31 1 97'2 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 29.75 22.04 1.35 1 973 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 21.13 22.69 0.93 1 974 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 10.88 23.37 0.47 1 975 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 20.00 22.10 0.90 June 1976...... 21.13 22.56 0.94 Source: Carolina Power and Light Company.

HA T I7. INDEXES OF RATES OF RETURN ON YEAR-END COMMON EQUITY AND OF COMMON TO K MARKET PRICES PER SHARE, MOODY S 24 PUBLIC UTILITIES AND CPSLi ANNUALLY, 1960-75 INDEX (1960=100) 240 220 CPKL common stock price 200 180 bloody's common

~

W stock price 160

~ W 140 120

~ M

~~

~ ~

~~

100 Hoody's rate of return on year-end common equity I

80 60

'P8L rate of return on year-end common equity

~

0 1960 61 62 63 65 65 66 67 68 69 70 71 72 73 74 75 76 SOURCE'TABLE Ij.

RRN Table 17 Page 1 of 1 Table 17-. Indexes of Rates of Return on Year-End Common Equity and of Common Stock Market Prices Per Share, Moody's 24

~

Public Utilities and CPGL, Annually, 1960-75 (Index: 1960=100)

Moody's 24 public utilities CPGL Year Rate of return Common Rate 'o f return Common on year-end stock aj on year-end S'tockbj common equity price- common equity price-1960........ 100.0 100.0 100.0 100.0 1961... 100. 2 129.7 96.9 '36.5 1962........ 104.1 131.1 103.8 141.4 1963 ~ ~ ~ ~ ~ ~ ~ ~ 105.2 147.2 104.3 167.1 1964........ 107.9 155.8 108.3 195.0 1965........ 114.0 167.7 116.6 226.0 1966........ 117.8 147.4 ill.l 224.5 1 967 ~ ~ ~ ~ ~ ~ ~ ~ 118.7 145. 9 109.4 202.3 1968........ 112.4 140. 9 108.8 191.3 1969........ 111.6 135.4 96.6 173.5 1970........ 105.0 113.2 70.5 130.1 1971........ 105.1 120.5 88.3 125.3 1972........ 107.2 114.9 103.0 134.5 1973 ~ ~ ~ o ~ ~ ~ ~ 102.8 102.0 90.1 122.2 1974........ 101.8 69.1 84.4 79.8 1975........ 100.3 73.4 94.2 82.1 P

bj Annual average of monthly averages of highs and lows.

Source= Hoody's Investors Service, Inc., Moody's Public Utilit Manual.

Carolina Power and Light Company.

CHART 18 RATE OF RETURN ON YEAR-END COMMON EQUITY AND INTEREST COST OF NEH LONG-TERM DEBT, CP8Lp ANNUALLY, 1960-76'ND 12 MONTHS ENDING JUNE 1976 PERCENT 15 13 12 Rate of return 10 on year-end colon equity

.Interest cost of neo long-term debt

'.960 61 62 63 64 65 66 67 68 69 70 72 73 71 74 75 76 SOURCE.'ABLE .18.

RRN Table 18 Page 1 of 1 Common Equity and Interest Table 18. Rate of Return on Year-End 1960-75, Cost of New Long-Term Debt, CPGL, Annually, 1976 and 12 Months Ending June (In percent)

Rate of return on Interest cost of year-end common new long-term Spread Year equity debt

[1] [2] [3] = [1] [2]

1960. 11.15 4.92 6.23 196 1 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 10 80 F

'4. 54 6.26 1962 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 11.57 n.a.

1963 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 11.63 n.a.

1 9 64 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 12.08 4.50 7.58 1 965 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 13.00 n.a.

1 966 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 12.39 5. 18 7.21 1 9 67 ~ ~ ~ ~ ~ ~ ~ ~ o ~ ~ ~ 12.20 6.45 5.75 1968 ~ ~ ~ ~ i ~ ~ ~ ~ ~ ~ ~ 12.13 6.87 5.26 1969 10.77 n.a.

1970 7.86 8.85 -0.99 1971 9.84 7.78 2 '6 1972 11.48 7.81 3.67 1973 10.05 8.10 1.95 1974 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 9.41 9.88 -0.47 1975 10.50 11.27 -0.77 June 1976........ 11.41 n.a.

n.a. = Not applicable.

Source: Carolina Power and Light Company.

M M M M M M'M M M M M M M M M 4

CHART 19. YIELDS ON GRADE A UTILITY BONDS COi'SPARED lCITH RATES OF RETURN ON YEAR-END COMMON EQUITY OF MOODY S 24'UBLIC UTILITY COMPANIES AND Of CP>Ly ANNUALLY' 960-75 PERCENT 14 13 CPSL rate of return on year-end common equity 12 10 Public utilities return on year-end common equity Average yields Grade A public utility bonds

~

W

~ ~ ~

0 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 SOURCE'ABLE 19.

RRN Table 19 Page 1 of 1 Table 19. Yields on Grade A Utility Bonds Compared with Rates

.of Return on Year-End Common Equity of Moody's 24 Public Utility Companies and of CP&L, Annually, 1960-75 (Xn percent)

Average Noody's 24 pub. util. CPGL yields on Return Return grade A on year- on year-Year public utility end common Spread end common Spread bonds equity equity

[2) [3 l = [2) [ll [4] [5] = [4I fl) 1960 ~ ~ ~ ~ o) ~ ~ 4.78 10.24 5.46 11.15 6.37 1961........ 4.62 10.26 5.64 10.80 6.18 1962......... 4.54 10.66 6.12 11.57 7.03 1963........ 4.39 10.77 .6.38 11.63 7.24 1964... ~ .... 4.52 11.05 6.53 12.08 7.56 1965........ 4.58 11.67 7.09 13.00 8.42 1966........ 5.39 12.06 6.67 12.39 7.00 1967........ 5.87 12.15 .6.28'.00 12.20 6.33 1968........ ~

6. 51 11.51 12.13 5.62 1969........ 7. 54 11.43 3.89 10.77 3.23 1970........ 8. 69 10.75 2.06 7.86 -0.83 1971'........ 8.16 10.76 2.60 9.84 1.68 1972........ 7.72 10.98 3.26 11.48 3.76 1973........ 7.82 10.53 2.71 10.05 2'. 23 1974........ 9.50 10.42 0.,92 -0.09 1975........ 10. 09 10.27 0.18, 9.4'0.50 0.41 Source: Noody's Investor Service, Nanual.

Inc., Nood 's Public Utilit Carolina Power and Light Company.

W W W W W W W W W W W W CHART 20 ~ TRENDS I N COMMON STOCK PR I CES l I NJDUSTR I ALS> UT I L I T I ES g Al JD CP~La ANNUALLY'960-75, AND MONTHLY, 1972-76 INDEX (1960=100) 240 240 220 CP8L 220 200 200 Industrials 180 180

/

160 / 160 CPSL Industrials 140 140 120 -p 120 I

100 100 Utilities Util i ties 80 80 60 60 0 0 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 1972 1973 1974 1975 1976 ANNUALLY MONTHLY SOURCE; TABLE 20.

RRN Table 20 Page 1 of 2 Table 20. Trends in Common Stock Prices: Industrials, Utilities, and CPGL, Annually, 1960-75, and Monthly, 1972-76 Price indexes (1960=100)

Year and month 400 40 Xndustrials- Utilities-a/ CPaL ~

Annual 1960. 100.0 100.0 100.0 1961. 117.8 128.5 136.5 1962. 110.3 126.3 141.4 1963. 123.5 138.7 167.1 1964. 145.0 149.2 195.0 1965. 157.3 162.3 226.0 1966. 153.3 145.6 224.5 1967. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 166.9 145.3 202.3 1968. 180.9 141.7 191.3 1969. 180.3 133.7 173.5 1970. 153.6 116.2 130.1 1971. 182.3 126.6 125.3 1972. 204.9 121. 4 134.5 1973. .202. 7 114.1 122.2 1974. 156. 3 83.0 79.8

. 1975. 162. 5 87.9 82.1

~Monthl 1972:

January... 192. 0 128.4 130.5 February.. 196.6 122.5 129 '

March..... 201.5 123.2 132.1 April..... 204.2 118.9 128.7 May 202.2 117.2 127.7 Juneau ....

e ~ ~ ~ ~ ~ ~

203.3 114.7 129.6 July e ~ ~ ~ ~ ~ 201.9 114.1 126.5 August.... 209.2 116.6 132.7 September. 205.8 118.1 133.6 October.. ~ 205.9 120.9 137.4 November.. 215 ' 130.5 152.6 December.. 220.6 131.7 153.3 1973:

January... 223.0 128. 1 143. 3 February.. 215.2 122.7 134.6 March..... 212.1 119.4 128.0 Aprlli ~ ~ ~ ~ 207.9 118.1 125.2 Maye ~ ~ ~ ~ ~ ~ 201.8 118.3 128.4 June 197.2 116.0 130.9 July...... 199.6 113.8 121.5 August.... 196.4 107.0 111.8 September. 199.4 111.6 118.7 Continued--

RRN Table 20 Page 2 of 2 Table 20 (continued)

Price indexes (1960=100)

Year and month 400 40 Industrials- Utilities CPaL-/

October.. 207.7 113. 6 117.4 November. ~ ~ ~ ~ ~ 192.9 103. 1 105.3 December. 178.6 97.6 101.2 1974:

. January.. 180. 3 103.7 110.6 February. "175.2 102.7 109.7 March.... 183.4 102.2 104.1 April.... 174.4 94.0 90.4 May...... 170.2 84.0 81.3 June..... 171.0 79.9 77.9 July o ~ ~ ~ ~ 157.4 75.5 67.3 August... 143.9 72.6 63.9 September 128.8 66.0 61.4 October.. 130.5 72.1 62.6 November. 134.9 73.5 68.2 December. 125.9 70.1 59.5 1975:

January.. 135.5 81. 5 68.2 February. 150.2 86.2 79.1 March.... 158.0 84.4 76.0 April.... 160.3 81. 5 72.6 Ma,y o ~ ~ ~ ~ ~ 170.9 84.7 75.4

,June ~ ~ ~ ~ ~ 174.5 93.2 85.7 July e ~ ~ ~ ~ 174.7 93.2 85.7 August... 161.9 86.7 81.9 September 159.8 86.5 85.4 October.. 167.1 90. 9 86.0 November. 169.7 93.4 92.5 December. 167.1 92.3 96.0 1976:

January.. '82.5 100. 3 102.6 February. 190.1 100. 8 102.5 March.... 191.4 97.5 103.4 April.... 192.9 98.3 101.8 May o ~ r ~ ~ ~ 191.4 97.5 93.8 June ~ ~ ~ ~ ~ 192.7 99.3 97.2 July o ~ ~ ~ 196.9 101.3 103.4 August... 194.6 104.2 105.0 September

• 198.8 108.0 111.9 a/ Source: Standard and Poor's Corporation utilities index revised and linked from 50 to 55 companies in 1966, and from 55 to 60 companies in 1972. Indexes for 400 industrials and for 40 utilities are continuations of indexes of 425 industrials and 60 utilities that: were revised by Standard and Poor's effective July 1, 1976.

b/ Source: Carolina Power & L ght Company.

l I

I I

• ee ~ ae im ~ ~ rt ms CHART 2I INDEXES (DEFLATED BY THE CONSUNER PRICE INDEX) OF INDUSTRIALS UTI LITIES AND CP8,L COMMON STOC.; PRICES, ANNUALLY, 1960-75, AND HONTHLY, 1972-76 INDEX (1960=100) 220 200 CP8L I

180 ~ i I i j II IL '

g 160 . Industrials ~ i

~ I 140 -ly

/ "1 J

120

/ Industrial s CP&L 100 Utilities I::j

'80 I I 1

I 60 Utilities I i'. I

'

l j j;.

i g 40 I ~

I

20 1960 61 62 63 64 65 66 67 68 69 70 71 72 73 74 75 76 1972 1973 1974 1975 1976 ANNUALLY V.ONTHLY SOURCF: TABLE 21

RRN Table Page 1 of 2, Table 21. Indexes (Deflated by the Consumer Price Index) of industrials, Utilities, and CPGL Common Stock Prices,

, Annually, 1960-75, and Honthly, 1972-76 Price indexes (1960=100)

Year and month 400 40 CPGL Industrials Utilities Annual 1960. 100.0 100.0 100. 0 1961. 116.6 127.2 135. 1 1962 108.0 123.6 138.5 1963 119.4 134.1 161.6 1964. 138.5 142.5 186.2 1965. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 147.7 152.5 212.2 1966. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 139.9 132.8 204 '

1967. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 148.1 128.9 179.5 1968 154.0 120.6 162.8 1969. ~ I ~ ~ ~ ~ ~ ~ ~ ~ 145.6 108.0 .140.1 1970. 117.2 88.7 99.2 1971.. ~

133.3 92.5 91.6 1972. 145.0 85.9 95.2 1973 135.0 76.0 81.4 1974. 93.9 49.8 47.9 1975. 89.4 48.4 45.2

~uonthl 1972:

January... 138. 2 92.4 94. 0 February.. 140.8 87.8 92.4 Harch..... 144.1 88.1 94.5 April..... 145.8 84.9 91.9 Hay e ~ ~ ~ ~ ~ ~ 143.8 83.4 90.8 June...... 144.3 81.4 92.0 July o ~ ~ ~ ~ ~ 142.7 80.6 89.3 August.... 147.6 82.3 93.6 September. 144.6 83.0 93.9 October... 144.3 84.7 96.3 November.. 150.9 91.2 106.6 December.. 153 7 91.8 106.8 1973:

January... 154.9 89.0 99.5 February.. 148.4 84.6 92.5 Harch..... 145.0 81.6 87.5 April..... ~ ' ~ ~ 141.0 80.1 84.9 Hay o ~ ~ ~ ~ 136.1 79.8 86.6 Continued--

I 1

I'

~

)l

RRiV Table Page 2 of 2 Table 21. (continued)

Indexes (1960=100)

Year and month 400 40 CPGL-/

Industrials Utilities June.... 132.1 77.7 87.7 July o ~ ~ 133.4 76.1 81.2 August.. ~ ~ ~ ~ ~ 129.0 70.3 73.4 Septembe r ~ ~ ~ ~ ~ 130.5 73.0 77.7 October. 134.9 73.8 76.2 November...... 124.4 66.5 67.9 December 114.4 62.5 64.8 1974:

January. 114. 5 65. 8 70. 2 February 109.8 64.4 68.8 March... 113.7 63.4 64.5 April... 107.5 58.0 55.7 l 1a,y ~ ~ ~ ~ 103.8 51.2 49.6 June ~ ~ ~ ~ 103. 3 48.2 47.0 July e ~ ~ ~ 94.3 45.2 40.3 August.. 85.1 43.0 37.8 Septembe r ~ ~ ~ ~ 75.3 38.6 35.9 October. 75.7 41. 8 36.3 November 77.5 42.2 39.2 December 71.9 40.0 34.0 1975:

January. 77.0 46. 3 38.8 February 84.8 48.6 44.6 March... 88.8 47.4 42.7 April... 89.7 45.6 40.6 May o ~ ~ ~ ~ 95.2 47.2 42.0 June.... 96.4 51.5 47.3 July o ~ ~ 95.5 50.9 46.8 August.. ~ ~ ~ ~ ~ ~ 88.2 47.2 44.6 Septembe r ~ ~ ~ ~ ~ 86.7 46.9 46.3 October. 90.0 49.0 46.3 November 90.9 50. 0 49.5 December 89.1 49.2 51.2 1976:

January. 97.1 53.4 54.6 February 100.9 53.5 54.4 March... 101.4 51.6 54.8 April... 101.7 51.8 53.7 Mayo ~ ~ ~ ~ 100.3 51.1 49.2 June.... 100.5 51.8 50.7 July o ~ ~ ~ 102.1 52.5 53.6 August.. 100.4 53.7 54.2 Septembe 1 ~ ~ ~ ~ ~ 102.2 55.5 57.5 a/ Source: Standard and Poor's Corporation.

b/ Source: Deflated by CPI, 1967=100.

~

r S~iV~ i ~D +'T~UT~i'Y~iFR~~G ~AC~.'

C HA~>

$ /KN 220 I

I

,I I

I I

200 180 I

Cost of net generating /

capacity (excludes I I

hydro) 160 I

I I

I

/

I 140 120 Average cost of total installed generating capacity (includes hydro) 100 0

1960 61 62 63 64 65 66 67 68 69 70 71 72 73 '14 75 76 SOURCE'TABLE 22.

RRN Table 22 Page 1 of 1 Electric Utility Gonerating e

Table 22. U.S. Investor-Owned Capacity: Estimated Investment Costs Per Kilowatt, Annually, 1960-75 (In dollars per kilowatt,)

Average cost of Year Cost of new generating total installed capacity generating capaci,ty 1 960 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 153 138 196 1 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 149 137 1962 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 146 137 1963 o e ~ ~ ~ ~ ~ ~ 136 136 1964 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 127 134 1965 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 123 132 1966 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 119 131 1967 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 118 128 1968 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 118 126 1969 o ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 122 126 1 970 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 126 126 1971 e ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 135 126 1 972 ~ o ~ ~ ~ ~ ~ ~ ~ ~ 144 129 1 973 ~ ~ ~ ~ ~ ~, ~ ~ ~ 168 133 1 974 ~ ~ ~ ~ ~ ~ ~ 193 138 1975 ~ ~ ~ ~ ~ ~ ~ o ~ ~ 226 143 Note: New capacity costs exclude hydro-capacity for which comparable data are not available. Exclusion of hydro from the average cost series would not materially affect compari-sons, because such capacity is only about 6 percent of total installed capacity.

Source: RRNA estimates based on data from Federal Power Commission, Statistics of Privatel Electric Utilities in the United States (1962,Owned 1963, 1970, and 1973 eds.), Steam Electric Plant Construction Cost and Annual Production Ex enses (1973 ed.),

No. 22392 (June 1, 1976); Electrical Norld, "15tn Steam Station Cost Survey" (October 16, 1967),

and "19th Steam Station Cost Survey" (November 15, 1975); Edison Electric Institute, StatisLicaL Yearbook, 1974 (November 1975); and ~Nand -(4hitman Index of Public Utilit Construction Costs (1975).

Docket No.E-2 Sub 297 Breitling Exhibit No. 1 BULLETIN NO. 104 To JULY I, 3.976 THE HANDY-WHYYMAN1NDEX u.

cnstLU.Ct~()n Osts Compiled and Published by WHITMAN, REQUARDT AND ASSOCIATES Engineers Consultants 1304 SAINT PAUL STREET BALTIMORE, MARYLAND 21202 TRENDS OF CONSTRUCTION COSTS

Docket No.E-2 Sub 297 Breit ling Exhibit No. 1

@II'II MS/P8 COST TREND TABLES From 19l2 to July l, 19Z6'

WAAIL LAO NY, LIIIII4 Alt.

WM ~ IICIL V VT. ~

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IDAIIO.

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Docket No.E-2 Sub 297 Breit ling Exhibit No. l COST TRENDS OF ELECTRIC LIGHT AND POttVER COiNSTRUC-TABLE I949 = IOO TION, SOUTH ATLANTIC DIVISION CONTINUED

%<<W,MQ<<,, w <<<< ~--

r, CO51 INOFS NttatRERR I

I CLASSES OP CONRTRtlCTION A'NO LAROR ELE hi 8 NTS Ypc ACC.

I ~

O'7 C'9 41 Total Plant All Stcam Ceneratlon ...... 31 37 4) 48 52 45 41 t1 ~

TonlPlsnt AllllydroCencratlon ...... 21 32 39 47 51 5$ 47 48 49 50 21 32 40 47 SI 5$ 47 48 49 49

~ Toislplsnt Steam& HydroCcncration .

Total Stcam Production Plant.................. 21 22 s) 39 46 49 45 47 46

5) 5'

'tructures & Improvements indoor........., .. 311 23 23 23 26 33 45 $3 52 53 Suucturcs St Improecmcnts Semi Outdoot...... 311 2

<<

Soitet Plant Equipment Coal Fired ............ 312 22 22 23 2I 29 4$ 47 47 45 45 godet Plant Piping lrntaltcd 34 34 29 31 68 61 62 41 Turbogcnetatot Units.......... 314 19 19 19 19 27 41 49 41 Accessory Elcctrieal Equlpmcnt . 315 28 30 29 29 32 $2 57 5$ ff Slice. Powct Plant Equi pmcnt... 316 Sttuctares & Improrcmcnts ..... 321 Ilesctor Plant Equlpmcnt ......

Total Hydraulic Productionptsnt....... 24 38 47 $0 46 4S 47 4 Structures & 1mprovtmcnts............ 3) I 26 3) 4$ 53 59 52 53 53 52 53'9 Rnetroin,Dsms,& Watcrwsys ....,... 332 24

'I I 29 38 52 41 48 49 Water Whceb, Turbbws. & Ccncraton... 333 2S 31 3$ 39 37 34 35 35 )5

<<'ts t.

Turbogcneraton ...

<<. TotalTrsntmbslon plant........... 26 28 28 27 28 3$ 41 4S 53 57 SI 47 49 50 51 Sl

. ~ Station Equrpment ................ 3$ 3 28 29 29 28 28 )I 31 46 51 57 57 $2 5) $5 5$ 56 "Towers& FIaturn................. 354 24 26 21 35 48 49 $0 42 43 47 4$ 4S

/ 20 20 20 21 32 37 41 39 31 3$ 39 42 40 Polesdi Fistufn ~ ~ ~ ~

~

355 IS IS 21 34 49 56 63 68 72 S4 50 53 53 $4 Orerhcsd Conducton& Desires..... 356 31 36 35 32

"

Underground Conduit ....... .... 357 21 20 22 22 23 23 31 41 45 48 50 47 4$ 47 47 41 42 358 22 2S 24 22 23 )2 31 41 46 41 39 3$ 42 42 Underground Conductors & Desires .

Total Dbtributlon Plant....................... 2$ s9 30 29 30 34 40 48 $3 57 53 49 $0 51 51 50

'StattonEquipment .......................,... 362 31 31 32 32 32 33 39 47 52 58 59 fb 57 58 58 57 Poles. Towcn& Fisturcs ...................... )bt ig IS 20 20 21 27 32 37 41 39 37 38 39 Orcrhcad Conducton & Dericcs................ 365 31 )6 35 32 34 49 56 6) 68 72 54 50 53 53 S4 54 366 23 24 34 45 52 5$ fl 49 SI Sl SI Underground Conductors it Der. In Conduit ~ .~ 22 22 )2 37 41 41 39 38 42 42 t

70 Unc Trsnslonncn.....................,-,..... 368 48 4$ 4$ $2 11 74 78 80 71 11 65 Pad Mounted Trsnslormcn.................'... 368 35 32 34 49 55 bl 67 69 SI 47 Sl fl 5s 5'I 27 31 36 41 IS 55 51 4g 43 46 48 44 44 44 62 69 65 62 61 $9 f9

~

1;., Mcten,installed 370 44 49 55 6S

<<';Street Ughdng Overhead .................... 373 $0 $0 49's l..as~'"<<:'-.; hlmtAnns&Lurnlnalrcsinststlcd....."""".

<<e>:a' Street Llghdng-Underground .........." ~ "" 52 f3" r

't<<

(g *<<

18 20 19 19 19 20 24 33 )8 38 )8 39 39 40 4$ ,

I ~

il C ~ '

T

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~

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.4%<<aJtsr<<e<<<<rg<<a<<

Docket No.E-2 Sub 297 Breitling Exhibit No. 1 COST TRENDS OF ELECTRIC LIGHT AND POWER CONSTRUC-TABLE TION, SOUTH ATLANTICDIVISION 1949 "- 100 ICOYTINVCD AcAtr% r ~ A t ~ AA COST INDEX NUMBERS

~1 tc re c c c' 47 48 46 43 48 49 50 S4 54 5$ $6 Q 63 63 bl 13 85 95 r 41 48 48 45 42 47 48 bl 88 I

97.-

48 51 52 53 53 58 62 63 66 75 41 48 49 46 43 48 49 50 53 $4 55 55 $9 e) 63 75 81 96 45 48 43 49 $0 SI 51 61 63 63 e) 14 94" 51 50 41 41 40 45 45 45 49 se 60 60 62 74 97 ~

46 4$ 4$ 4$ 4l 39 45 46 48 53 54 55 59 bl el 61 61 68 '77 91, It 65 66 67 67 60 S4 54 55 se 64 6$ 68 71 n 72 71 79 89 98 40 41 46>> 48 45 47 53 5f Sf 62 Q Q Q 63 63 6$ 73 88 96~

51 57 62 el $4 5T 61 Q 62 66 68 71 73 74 70 70 18 90 Se>>-, . 't 2

4$ 4f 4$ 43 )9 40 44 4$ 44 41 48 49 fl 56 61 61 63 65 74 81 97 51 50 50 41 ll 40 4$ 45 45 48 49 SO 56 60 60 62 64 74 86 97

46 47 46 4) 40 40 45 45 43 41 48 48 $4 59 60 62 74 86 91, 36 37 39 39 39 37 38 41 46 47 $0 f3 55 S8 62 64 6S 6S 66 Te 90 97 2 t

>>

~ ~ '-

sl 97r '

50 SI SI 48 44 51 SI 52 55 55 56 51 61 65 Q 6$ 67 75 88 55 Sl $8 57 5$ 5% 55 60 60 bl 65 66 67 61 69 10 70 61 67 75 89 45 45 46 4$ 42 40 38 43 43 43 4'7 49 56 el bl 63 6b 76 87 91 t, 36 36 37 36 36 34 33 37 31 36 40 42 ~3 44 se f9 64 70 15 90 1001 = ~

$4 58 64 56 48 43 45 50 Sl 54 56 53 55 $1 60 65 61 61 68 11 90

""

44 4$ 4S 41 39 44 4$ 4) 45 49 $0 49 60 62 63 61 76 87 98 40 49 40 38 36 39 42 42 46 49 46 41 Sl 51 S6 54 55 64 15 91 49 $2 49 41 4$ 49 50 $0 53 f3 S4 $5 $9 63 64 68 76 ST,. ~

$6 59 59 57 54 55 59 60 62 6S 66 dT 68 13 73 Tl 70 18 94 3d 37 36 36 34 33 31 31 36 42 43 56 $9 10 75 100 64 56 48 43 45 50 $1 54 $6 53 5$ ST 60 65 67 67 68 11 99 48 49 49 48 48 45 43 48 49 49 55 $4 59 63 es 67 Te 81 97 4j 44 49 40 38 36 39 42 42 49 41 54 57 56 55 64 75 91 dl 60 64 63 61 59 60 63 63 63 70 72 11 67 67 67 75 94 96 52 $6 63 $3 46 42 4$ 49 49 52 55 52 53 56 59 65 67 67 61 77 89 99 41 48 41 41 37 )9 41 42 46 50 46 51 60 64 65 65 65 73 82 95 I S9 $9 60 60 59 59 bl 66 67 67 61 67 68 68 68 69 69 69 69 76 86 92 '

49 $1 52 S2 50 47 48 Q 53 54 Sf 55 55 Sb 60 62 62 62 62 69 84 49 $3 54 51 55 55 57 51 58 59 f8 59 el 62 6$ be 69 68 72 81 97 ',I, r

48 48 43 43 43 44 47 47 48 SI 61 66 68 68 69 74 80 92 '

~ M t ~ g>>r ~l

'23 1

t Bandy-Whitman Bulletin N0.104 r

Doc et No.E- Su 7 Breitling Exhibit No.

COST TRENDS OF ELECTRIC LIGHT AND POIIVER CONSTRUC-TABLE TION, SOUTH ATLANTIC DIVISION 1949 = )00 CORTIYUCD COST titDCX RUMSERS CLASSES OF CORSTRUCTIO'N EFC 1961 AND LABOR CLKMEYTS ACC.

f II IA 'Vl c o o'if Total Plant AllStcam Generation ...... 100 104 I If I IS 12S 129 133 154 158 Iei 160 I f9 151 Total Phnt-All Hydro Ccncrstion ...... 100 103 113 117 124 128 133 143 149 If) 157 I S9 159 159 TotalPhnt Steam& H)droCcneradoa . 100 104 114 I IT 124 12$ 132 143 I)I 15$ 158 1$ 9 158 157 tr

',

Total Qeam Production Pleat .................. 100 103 113 115 121 125 130 146 160 167 110 Ie) I 66 160

., Qnrctares & Improvements-indoor....... ... 311 100 102 Ill I I) 119 124 129 140 147 IS I 156 159 157 160 Qruetures & Improrements Semi Oatdoor ..... 311 100 100 100 102 I IO 113 I I8 l)3 145 148 152 152 147 149 TtoOer Plant Equi pmeat-Coal Fired ............ 312 100 105 116 118 123 I sS 134 152 169 174 I)I 1$ 3 1,82 180 Itoiler Hant Plplni lrutalled 100 I IO 120 12$ 130 140 145 ie) 178 1$ 3 193 201 201 Turboxencrstor Units ........ 314 100 101 110 110 I I8 121 124 144 160 170 168 159 159 144 Accessory Dcctrlcal Equlpmcnt 315 100 107 120 123 130 13$ I)7 144 154 158 If9 148 134 129 Mhc. Power Plant Equi pmcat . 316 100 104 110 I li 120 123 12S 136 144 149 154 156 157 158 Sauctures & Improrcarcats ... 321 Reactor Plaat Equtpmeat 322 II Total Hidrsullc Production Plant.......

Qrucnucs & improvements............

Reeerrolrt,Dsmt,& Waterus)s........

331 332 100 100 100 103 102 102 110 III 108 I IS 113 113 123 119 120 127 124 12l 132 129 130 14$

140 140 154 147 148 160 151 15) 166 156 160 169 1$ 9 164 I TO 157 164 IT I 160 169 Water Wbeeh, Turbines,* Ccncrat ore... 3)3 100 107 117 123 134 I)7 141 I el 178 187 190 191 195 ISS CasTurboSencratocs A

0~

Total Transmhshn Phnt........... 100 10$ 117 121 12T I)I 131 147 151 If) 1$ 6 Iff 152 150 StsdonEqulpment ................ 353 100 107 121 123 130 I)3 136 147 156 162 159 147 139 129 Towers& Flxtura................. 354 100 10$ I la 120 127 131 135 144 152 lfS 164 1 70 I'l 175 r

Poles & Fixtures 3$ 5 100 102 110 115 121 124 I'9 140 148 ISI 1$ 4 159 fbi 163 r Orerbcud Conductors & Derkcs..... 356 100 105 114 120 128 I)2 140 154 162 160 155 157 1$ 5 156 1

UnderSround Conduit ............. 357 100 103 IIO IIS 121 12$ 131 ~ 141 14$ 15f 160 16S 168 113-l UaderTround Conductors & Dmkcs . 358 100 107 130 134 03 137 144 I~ I 125 123 128 130 127 129, Total Dhtrlbutioa Plant .........r... 100 10l 113 117 123 127 131 139 14) 145 147 149 149 149 . " ~

StsthutEqu'p mt . 362 100 105 114 I I5 123 12S 01 142 151 156 151 152 Poke, Torers & Fixtures ............ 364 100 102 110 115 121 124 129 140 148 151 IS4 1$ 9 ie>>63 l~".*,',-, ",'.

0 crbesd Conductors& Dcrkrs......

L,';;>> ',"',." 36$ 100 105 I la 120 12$ 132 144 1$ 6 154 152 158 lb 1 UndcrSrouad Conduh ~ ~ ~..................... 366 100 103 109 113 119 124 129 136 143 148 IS4 158 Iel Ibl F ..reer, ,>>,, ',,

UndcrSround Conductors & Des.-ln Conduit.... 367 100 101 130 04 I)3 I)7 144 141 125 123 Une Transformers.. 368 100 105 I I8 I I8 126 12$ 128 02 140 136 131 129 Psd Moust c4 Transformers......... 368 100 100 100 100 100 100 100 100 100 100 100 98 95 92 7" Scrrkes-Orerbesd............... 369 I CO 105 114 120 12$ 131 142 ISO lie 141 153 157 15$ I/9 s ~'>>>>r~~ .

Servkes-Undcrxround ........... 369 100 103 I I6 I I7 IIT 118 119 124 124 I I7 121 116 ill e 119 '> ~w tT Meters. InstaDed . 370 100 100 100 99 103 10$ I0 I 105 III 114 IIT I IS I IS 117 &

Qrcet Lllhdal Orcrhesd ......... 114 I IT ll6 154 153 Mast Arms & Lumlnrdras Imtalle4...

373 313 100 104 120 127 129 100 135 III 154 114 115 11$ iif 8";,':,9: ~; '-

Qreet Lllhdag-Underground...... 373 100 107 108 I !0 121 i)e 129 121 139 121 143 145 146 146 142 +;

',,

02 I'

100 103 112 119 127 137 145 I5 I 151 162 163 169 2A a '>>

J g

"~

T 8 e

k

~ '

Handy-8'hitman Bulletin N0.104

~ ~

• 4>> s ~

~ *4 "s!.'co~'

~

' M~eus as f r ~a>> >ca~,sw w.a w~ a~r'4L'T '"u~

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Q.

-'ABLE

~ r

- -'*

1967 C

~r 1963 6 ~

'949 r

COMTlttUED 1964

-

!" w 196$

~

'

'ION, co%I

rr 1966

~ Ir rw " rr I'r

"'COST TRENDS OF ELECTRIC LIGHT AND POPOVER CONSTRUC-SOUTH ATLANTIC DIVISION Ieocx .'iUMstee 1967

• 196$

' ~

1969

~

Docket No.E-2 Sub 297 Breitling Exhibit

-'910 1971 r

= 100 No. 1 159 15S 159 161 16) 165 167 169 173 174 119 183 184 190 199 206 213 220 230 163 ie2 164 Ief 16S 170 173 174 179 181 18$ 190 193 200 209 216 224 2)0 159 159 leo I el 164 Ibb 169 170 174 176 1$ 0 184 1$ 1 193 202 2% 217 903 162 162 161 164 165 167 168 171 173 174 179 180 182 ISS 192 197 20$ 212 164 164 167 168 170 179 206 8 .~

171 113 174 ISO 182 188 194 211 215 221 232 151 151 152 154 155 lf6 1$ 7 1$ 9 162 162 ief 170 173 179 Ise 192 199 20$

iei 182 1$ 2 186 Ieb IS9 190 193 194 191 202 204 208 209 217 231 237 204 204 Xe 20S XS 208 215 21$ 220 Z2 HO 2)0 23$ 239 246 2$ 0 210 218 r-'ii 144 144 14) 14) 146 146 146 Ifo 150 150 15$ 151 IS I 15$ ISS 162 171 176 131 131 126 128 134 139 144 144 !4S 154 ie2 162 167 173 176 186. 191 19S r 159 I ho !60 162 163 ies 167 169 171 173 177 I et 186 189 19$ 203 208 211 227 100 101 '102 104 105 106 I OS IO9 113 lie 120 124 I)I 100 102 10) 10$ 106 109 tto III 114 11$ 122 121 132 I tf 176 179 179 183 184 186 188 194 194 19$ 202 209 217 222 22S 234 241 164 16l 167 168 170 171 173 17l iSO 179 182 188 19l 206 21) 2 IS 221 232 17$ 115 179 180 183 IS) 1$ 7 188 196 196 XO 205 212 219 224 230 23$ 242 186 186 181 188 191 192 IS! 191 199 ol 206 207 210 221 223 232 242 244

'Ll 100 101 i0 I I0 I 103 104 IIO tie 12i I2I 125 126 132 134 154 150 1$ 2 1$ 4 15$ 162 166 167 172 174 179 185 186 192 203 210 217 22$

132 I22 IK 126 129 133 137 137 140 ll3 148 151 153 1$ 6 159 I el 166 173 k,- '-,;-.-.-'~.'"~ IS I I8 I 185 186 190 194 19$ 199 209 210 21$ 220 m 23$ 240 245 25t 260 273:r 169 169 113 113 176 ITS 182 1$ 3 1$ 9 192 19$ 196 202 210 22S 231 2)7 244 247 161 lf2 145 lid 1$ 7 I el 164 164 171 172 176 177 114 178 19) 211 218 227 245 L~

180 180 18$ 184 188 191 194 194 202 20) XIT 210 217 242 248 259 214 128 127 130 132 138 149 1$ 2 150 1$ 3 154 157 1$ 7 147 151 166 111 186 145 i 151 150 152 If3 1$ 6 1$ 9 162 162 167 169 113 17$ 179 18f 197 205 213 21$

144 141 131 142 142 145 147 ile 149 151 ife 159 ie2 167 Iro I)I 17$ I8 1 169 169 173 113 116 178 1$ 2 183 189 192 19f 196 202 210 22S 2)2 240 241 Ibb 166 170 IT I ITS 17$ Ief 186 192 193 XO 21f 210 218 238 256 267 283

~c~~,.~(> te+4 prA ~

169 169 173 174 17e 17$ 180 179 184 182 IS) 188 192 XO 213 216 229 241 253 128 127 130 132 138 149 152 150 153 154 151 157 147 f'"+

151 1 66 177 186 14$ 184 rr"

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119 114 108 101 107 107 108 109 109 I IO I I0 114 116 119 iie 114 Ill I IS 116 IIT PP'-'5 93 93 93 93 86 $9 90 Sb 91 91 91 95 96 91 91 91 93 let let I el 166 166 170 174 180 1$ 2 189 1$ 9 196 212 207 2te Q6 257 270 288 298 " '-7" 123 122 121 128 130 136 142 14$ 154 15$ Ibb IIT 111 117 111 117 I lb 158 172 179 190 192 203 20$ 211 f

117 116 116 111 111 I IT 120 121 126 127 121 134 t)$

152 152 152 I S4 15$ 1$ 7 167 1$ $ I f9 162 169 i72 172 173 182 187 199 217 219 rrr r ~ '

i< 112 112 113 114 I I5 iie 116 I I7 124 129 119 121 122 124 127 145 153 I S9 iei p-tr'. 142 142 145 144 146 144 t46 I lb 153 114 176 169 162 169 113 197 204 216 rrr 114 174 183 184 1 88 189 192 194 197 198 206 XS 216 24$ 247 270 298

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Handy-8'hit man Bulletin N0.104,4 -;.,

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Docket No.E-2 Sub 297 Breitling Exhibit No. 1

~ 4 COST TRENDS OF ELECTRIC LIGHT AND POWER CONSTRUC-TABLE TION, SOUTH ATLANTIC DIVISION l949 = l00 Coi-TINUED COST INDEX NUMBERS ClASSES OF CONSTRVCTION FFC 1972 1913 1974 1915 1976 ANDI<<atrOR EEESIENTet ACC.

C C ve Total Plant-All Stcam Ccncradon ...... 238 247 2$ 1 260 27$ 313 347 367 377 387 TOLI Plant AB H)dro Ccneratlon ...... 2S I 260 265 278 293 )30 364 3$ 2 3$ $ -

S9$

Total Plant-Steam & Hldro Cenerstlon . 242 <<51 <<255 265 280 31$ 35) 373 3$ 2 392 Total Stam Production Pbnt .................. 2)l 24$ 241 <<2$ $ 265 303 )32 352 362 31)

Structures & Improvements-Indoor............ 311 267 284 '90 304 317 351 371 3ll$ )$ 6 395 Structura & Improvements-Semi Outdoor ..... 311 233 2$ 4 282 11$ 370 171 364 310 BoOer PLot Eqdpmcnt-Coal Fired ............ 312 258 262 270 27$ 290 131 371 397 409 427 Boiler Plant Plpln$ Installed ... 309 ) lb 328 329 336 371 ~ II 41$ 43$ 458 Turbo$ cncrstor Units.......... )14 198 205 206 214 217 237 248 <<76 292 295 Acccssorl Elcctrlal Equipment . 31$ 202 1$ 219 220 234 251 288 300 31$ 323 hlbc. Pouct Plant Kqulpmcnt ... 316 241 2$ 1 <<2$ 7 265 27$ 106 333 354 363 Structures* Improvements ... 121 144 1$ 0 1$ 5 163 169 1$ 6 240 206 206 I)

Reactor Plant Kqufpmcnt .... 3<<4 142 145 149 153 15$ 175 189 19$ 209 215 Total Hides ullc Production Plant....... 210 282 2S9 305 311 352 3$ 0 395 395 407 Strucesrcs & Improvements............ 3)l 267 2S4 290 )Ot 311 351 317 3$ $ 386 395 Rcservdn, Dame, & Wateruals........ 332 272 2$ 4 93 312 321 3$ 9 389 401 398 401 L! 44 ~

Water Wheeb, Turblncs, & Ccncraton... 333 268 276 279 287 302 329 353 377 391 411 I!

L Cas Turbo$ eoerators 136 137 137 137 l)S 142 164 181 199 199 Total Transmbskur Plant........... 241 246 2S2 261 279 321 )62 3$ 1 394 40$

Ststkn Equipment 353 171 177 182 186 X4 215 211 2$ 4 292 291 Touen & Flsturcs ~ S54 287 29$ 312 321 )39 40$ 451 466 4$ 3 461 Pdes& Raures . 355 254 270 278 313 345 )96 44$ 4$ 6 449 4$ 4 Overhead Conducton & Devkcs ~.... 356 247 244 244 248 254 291 329 )67 399 423

-4 Under$ round Conduit ............. 357 333 346 352 359 373 406 433 449 470 4$ 7 Under$ round Conductors& Devka . 358 187 197 202 206 244 299 301 2$ 6 <<9<< 307 44 L! Total Dbtrtbutbn Plant .......... 234 241 246 257 274 30$ 343 363 371 379 Ii Sation Equipment 362 176 181 185 192 213 241 272 2$ S 290 291 Poles, Ton en & Flsturcs ......... 364 264 281 90 318 351 399 4$ ) 471 463 467 4 Overhead Conducton & Dcvkcs... 16$ 304 )09 312 315 32$ )60 412 4$ 1 490 514 Undcr$ roond Conduit 366 268 28$ 293 300 313 315 370 37$

Il 3$ $

Undcrlround Conduct on & Dcv.-ln Conddt.... 367 190 204 199 199 219 261 262 26$ 274 t

Uoe Trsnsformen. 368 IIv 114 I IS 115 115 124 137 154 153 151 r f e~ Psd Mounted Transformers......... 368 96 98 9$ 97 100 102 103 101 10) 104 e 4 f/4<<er Servkcs Ovahesd 369 304 324 327 330 344 3$ $ 3$ 7 404 42) 4))

L -:- Servkcs-Undalround ........... 369 222 246 249 2S4 304 314 320 "92 100 316 4 4

LI Mctcn, Installed .

Street USbthr$ -Overhead .........

blast Arms & 14nninalrcs lnstrdied...

370 373 313 139 222 162 14<<

233 168 140 231 169 140 237 170 142 247 177 ISO 291 200 163 329 228 116 372 247 1$ 4 6

181 399

<<91 Street UShdn$ Undcr$ round...... 373 223 23S 239 236 243 292 319 $ 70 315 396 313 350 3$ 1 361 377 416 458 465 1,.26,..., 4 Li

'* .4.

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'.""~"=:a."~BandyWhitmanBulletin No.204,-'=,';:; '".'"';.',:.;:

Breitling Exhibit No. 2 Docket E-2, Sub 297 CAROLINA POWER & LIGHT CCMPANY ORIGINAL COST, TRENDED ORIGINAL COST AND TRENDED ORIGINAL COST LESS DEPRECIATION OF ELECTRIC PLANZ IN SERVICE AT JUNE 30, 1976 EBASCO SERVICES INCORPORATED 100 CHURCH STREET NEW YORK NOVEMBER 1976

I Breitling Exhibit No. 2 Schedule 1 Page 1 of 3 CAROLINA P(PER & LIGHT COMPANY

SUMMARY

OF ORIGINAL COST$ TRENDED ORIGINAL COST AND TRENDED ORIGINAL COST LESS DEPRECIATION FOR ELECTRIC PLANT IN SERVICE AT JUNE 30, 1976 AT 7 1/76 PRICE LEVEL Trended Original Original Trended O.C.

No. Account Title Cost Cost Less Deor.

I IV I301 Intan ible Plant Organization $ 177 329 $ 177 329 $ 177 329 Total Intangible Plant $ 177 329 177 329 $ 177 329 Steam Production Plant Roxboro No. 1 and No. 2 Asheville No. 2 Sutton No. 3 310 Land and Land Rights $ 9,188,213 $ 9,188,213 9,188,213 58,728,763

,I"

"

'14 Structures and Improvements Boiler Plant Equipment Turbogenerator Units 44,260,263 182,424,177 65,289,405 70,641,515 309>550,823 104,880,848 256,113,807 85,444,118 Accessory Electric 17,331,240 28,491,721 23,592,889

'16 Equipment Miscellaneous Power Plant Equipment 3 076 742 4 873 893 4 002 895 Total 6321 570 040 6 527 627 013 6437 070 685 I11 Other Steam Production Plant Land and Land Rights Structures and Improvements 3,817,759 29,969,450

$ 3,817,759 87,812,285 3,817,759 35,712,053 12 Boiler Plant Equipment 115,183,339 278,8953262 145,822,898 14 Turbogenerator Units 62,546,892 139,559,896 63,929,843 Electric 14,682,512 32,745,463 17,257,807

'16315 Accessory Equipment Miscellaneous Power Plant Equipment 3 101 950 7 491 075 3 767 787 Total Other Steam Production $ 229 301 902 $ 550 321 740 S270 308 147 Total Steam Production Plant $ 550 871 942 $ 1 077 948 '753 $ 707 378 832 Nuclear Production Plant 20 Land and Land Rights 4,511,650 $ 4,511,650 4,511,650 21 Structures and Improvements 156,563$ 434 170,211,371 1573319,153 22 Reactor Plant Equipment 163,733,461 189,342,780 174,763,555 323 Turbogenerator Units 79,395,550 97,990,954 88,104,618 Accessory Electric Equipment 57,609,626 66,381,979 61,704,864 Miscellaneous Power Plant Equipment 8 599 989 10 135 687 9 249 704 Total Nuclear Production Plant $ 470 413 710 $

Breitling Exhibit No. 2 Schedule 1 Page 2 of 3 CAROLINA POWER & LIGHT CCNPANY

SUMMARY

OF ORIGINAL COST, TRENDED ORXGXNAL COST AND TRENDED ORIGINAL COST LESS DEPRECIATION FOR ELECTRXC PLANZ IN SERVICE AT JUNE 30, 1976 AT 7 1/76 PRICE LEVEL Trended Original Original Trended O.C.

Account Title Cost Cost IIX IV H draulic Production Plant 330 Land and Land Rights $ 2,124,615 2,124,615 2,124,615

R Structures and Improvements Reservoirs, Dams and Waterways Waterwheels, Turbines and Generators 2,102,428 15,525,447 16,9350145 153,564,884 6,8207931 78,159,940

'34333 Accessory Elec"ric Equipment 5,065,427 1,077,527 42,441,970 4,970,525 16,482,991 913,229 Miscellaneous Power Plant Equipment 207,472 780,570 92,951 336 Roads, Railroads and Bridges 8 259 64 222 44 312 Total Hydraulic Production Plant $ 26 ill 175 $ 220 881 931 $ 104 638 969 Other Production Plant 40 Land and Land Rights 246,907 246, 907 $ 246,907 41 Structures and Improvements 7,767,789 100438,582 9,048,934 42 Fuel Holders, Producers and Access. 1,413,414 21074,762 1,663,625 43 Prime Movers 25,934,138 39,889,538 30,102,554 44 Generators 11,921,708 17,419,593 14,085,997 45 Accessory Electric Equipment 2,526,515 3,858,989 2,932,998 346 Miscellaneous Power Plant Equipment 3 127 082 4 564 883 3 712 056 Total Other Production Plant $ 52 937 553 $ 78 493 254 $ 61 793 071 Transmission Plant g,so Land 2,094,884 $ 2,094,884 2,094,884 Land Rights 29,410,235 29,410,235 26,038,482 352 Structures and Improvements-Struc. 2,842,792 7,289,034 4,263,342

-Clearing 7,291,064 25,780,875 171307,002 1-354 Station Equipment Towers and Fixtures 93,798,288 16,984,186 168~484>046 128,097,013 30,602,028 47,193,956 55 Poles and Fixtures 34,008,024 64,973,221 49,958,525

$

359 Overhead Conductors Roads and, Trails and Devices 64,276,718 16 915 147,170,390 46 293

'109,080,978 35 769 Total Transmission Plant 250 723 106 492 442 934 367 478 023

l I

Breit ling Exhibit No. 2 Schedule 1 Page 3 of 3 CAROLINA POMER & LIGHT CV;1PANY

SUMMARY

OF ORXGINAL COST, TRENDED ORIGINAL COST AND TRENDED ORIGINAL COST LESS DEPRECIATXON FOR ELECTRIC PLANZ IN SERVICE AT JUNE 30, 1976 AT 7 1/76 PRICE LEVEL Trended Original Original Trended O.C.

Account Title Cost Cost Less Deor.

IIX IV V Distribution Plant 360 Land $ 2,396,409 2,396,409 $ 2,396,409 Land Rights 13,608,190 ,13,608,190 11>682>312 Structures and Improvements-Structures 3,487,757 7,737,978 6,069,273

-Clearing 9,157,696 27,808,460 20,462,193 Station Equipment 81,881,937 143,546,481 118,785,212 Poles, Towers and Fixtures 72,519,642 188,231,700 108,360,181 Overhead Conductors and Devices 82,124,021 229,990,757 159,649,692 3 6 Underground Conduit 2,831,878 4,700,146 3,903,621 Underground Conductors and Devices 12,244>413 16,649,167 14,773,948 Line Transformers 115,624>312 149,627,897 107,723>155 Services 34,733,283 68,668,347 43,091,139 Meters 29,041,902 45,502,438 27,056,884 Installations on Customers'remises 4,073,161 7,321,198 4,432,315 Leased Property on Customers'remises 79,541 166,218 26,510 Street Lighting and Signal Systems 9 589 604 19 320 114 12 150 102 Total Distribution Plant 473 393 746 $ 925 275 500 $ 640 562 946 General Plant Land and Land Rights 607,293 $ 607,293 607,293 390 Structures and Improvements 5,326,581 10,945,182 7,834,643 1 Office Furniture and Equipment 3,950,447 5,823,945 4,268,347 2 Transportation Equipment 9,136,851 9,136,851 6,049,732 3 Stores Equipment 367,774 565,914 388>010 3 4 Tools, Shop and Garage Equipment 1,271,979 2,257,476 1>725,817 5 Laboratory Equipment 2,161,356 2,780,597 2,321,713 6 Power Operated Equipment 182,047 278,660 171>585 397 Communication Equipment Miscellaneous Equipment Total General Plant TOTAL ELECTRIC PLANT XN SERVICE 8>>

$1 4,910,279 308 719 852 851 887

$

$3

>>

4,910,279

>>

308 719 371 409 038

~$

$2 4,118,422

~ 257 828 405 426.104

CAROLINA POWER 6 LIOHT COMPANY SUPPLEMENTARY DATA Average Life Acct, and Net No. Account Title TREND SOURCE Curve Sha e Ssls - X II IV Intan ible Plant 301 Organtzatfon Not Trended Steam Production Plant Roxboro No. 1 and No. 2, Asheville No. 2 Sutton No. 3 310 Land and Land Rights Not Trended 311 Structures and Improvements Handy-Whitman Table 6 Line 7 - Structures and Improvements 30R3 (3) 312 Boiler Plant Equipment Handy-Whitman Table 6 Line 8 - Boiler Plant Equipment 30R3 (3) 314 Turbogenerator Units Handy-Whitman Table 6 Line ll - Turbogenerator Units

- Accessory Electrical Equipment 30R3 0 315 Accessory Electric Equipment Handy-Whitman Table 6 Lfne 12 30R3 0 316 Miscellaneous Power Plant Equipment Handy-Whitman Table 6 Line 13 - Mfscellaneous Power Plant Equipment 30R3 0 Other Steam Production 310 Land and Land Rights Not Trended 311 Structures and Improvements Handy-Whitman Table 6 Line 7 - Structures and Improvements 35R4 (2) 312 Boiler Plane Equipment Handy-Whitman Table 6 Line 8 - Boiler Plant Equipmenc 35R4 (2) 314 Turbogenerator Units Handy-'Whitman Table 6 Line 11 - Turbogenerator Units 35R4 0 315 Accessory Electric Equipment Handy-Whitman Table 6 Line 12 - Accessory Electrical Equipment 35R4 0 316 Miscellaneous Power Plant Equipment Handy-Whitman Table 6 Line 13 - Miscellaneous Power Plant Equipment 35R4 0 Nuclear Production Plant 320 Land and Land Rights Not Trended 321 Structures and Improvements Handy-Whitman Table 4 Line 1 - Reinforced Concrete Buildings 25R3 (9) 322 Reactor Plant Equipment Handy-Whitman Table 6 Line 16 - Reactor Plant Equipmenc 25R3 (9) 323 Turbogenerator Units Handy-Whitman Table Table 6 Line Line ll -- Turbogenerator Units Accessory Electrical Equipment 25R3 25R3 0

0 324 Accessory Eleccrfc Equfpment Handy-Whitman 6 12 325 Miscellaneous Power Plant Equipment Handy-Whitman Table 6 Line 13 - Miscellaneous Power Plant Equipment 25R3 0 MVl W Ol O 00 m'o ooo r. o

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pl

4) I-I tn x

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CAROLINA POWER & LICHT COMPANY SUPPLEMENI'ARY DATA Average Lffe and Net Account Title TREND SOURCE ~C* Sh* ~Sl e-IV H draulic Productfon Plant 330 Land and Land Rights Not Trended 331 Structures and Improvements flandy-Whitman Table 6 Line 20 - Structures and Improvements Various 0 332 Reservoirs, Dams and Waterways Handy-Whitman Table 6 Line 21 - Reservoirs, Dams and Waterways  : Lives 0 333 Watcrwheels, Turbines and Cenerat ors Handy-Whitman Table 6 Line 22 - Waterwheels, Turbines and Generators (Calculated 0 334 Accessory Electric Equipment Handy-Whitman Table 6 Line 12 - Accessory Electrical Equipment by 0 335 Miscellaneous Power Plant Equipment lfandy-Whitman Table 6 Line 13 - Miscellaneous Power Plant Equipment Plants) 0 336 Roads, Railroads and Bridges Engineering News Record - Construction Cost Index 0 Other Production Plant 340 Land and Land Rights Not Trended 341 Structures and Improvements llandy-Whitman Table 6 Line 26 - Gas Turbogenerators 25R3 342 Fuel )folders, Producers and Accessories )landy-Whf tman Table 6 Line 26 - Cas Turbogenerators 2 5R3 0 343 Prfme Movers lfandy-Whitman Table 6 Line 26 - Cas Turbogenerators 25R3 0 344 Generators Handy-Whitman Table 6 Line 26 - Cas Turbogenerators 25R3 0 345 Accessory Electric Equfpment Handy-Whitman Table 6 Line 26 - Gas Turbogenerators 25R3 0 346 Miscellaneous Power Plant Equipment Handy-Whitman Table 6 Line 26 - Cas Turbogenerators 25R3 0 Transmfssfon Plant 350 Land Not Trended Land Rights Not Trended 75R3 0 352 Structures and Improvements - Struct. Handy-Whitman Table 6 Line 6 - Structures and Improvements 55R3 0

- Clearing Handy-Whitman Table 4 Line 13 - Co000on Labor 75R3 0 353 Station Equipment llandy-Whitman Table 6 Line 30 - Station Equipment 40R2 3 354 Towers and Fixtures llandy-Whitman Table 6 Line 31 - Towers and Fixtures. 50R1 0 355 Poles and Fixtures Handy-Whitman Table 6 Line 32 - Poles and Fixtures 30L1 0 356 Overhead Conductors and Devices Handy-Whf.tman Table 6 Line 33 - Overhead Conductors and Devices 40R2 359 Roads and Trails Engineering News Record - Cons truction Cost Index 75R3 0

~ u co bf 0l O t1 00 C' cl m QC o n 0 o 00 M

4J M X

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CAROLINA POWER 6 LIGHT COMPANY SUPPLEMENl'ARY DATA Average Life and Net Account Title TREND SOURCE ~Ce Sh

• Seel el - S IV Distribution Plant 360 Land Not Trended Land Rights Not Trended 75R3 0 361 Structures and Improvements - Struct. Handy-Whitman Table 6 Line 6 - Structures and Improvements 55LO 0

- Clearing Handy-Whitman Table 4 Line 13 - Common Labor 75R3 0 362 Station Equipment Handy-Whitman Table 6 Line 39 - Station Equipment 35LO 3 364 Poles, Towers and Fixtures Handy-Whitman Table 6 Line 40 - Poles, Towers and Fixtures 30R2 0 365 Overhead Conductors and Devices Handy-Whitman Table 6 Linc 41 - Overhead Conductors and Devices 35L1 4 366 Underground Conduit Handy-Whitman Table 6 Line 43 - Underground Conduit 50R3 0 367 Underground Conductors and Devices Handy-Whitman Table 6 Line 44 - Underground Conductors and Devices 35L1 7 368 Line Transforeers. Handy-Whitman Table 6 Line 46 - Line Transformers 25R2 8 369 Services Handy-Whitman Table 6 Line 48 - Services - Overhead 25R2 0 370 Meters Handy-Whitman Table 6 Linc 50 - Meters, Installed 30R3 0 371 Installations on Customers! Premtses Handy-Whitman Table 6 Line 51 - Street Lighting - Overhead 10R1 6 372 Leased Property on Customers'rem. Handy-Whttman Table 6 Line 46 - Line Transformers 25R2 0 373 Street Lighting and Signal Systems Handy-Whitman Table 6 Line 51 - Street Lighting - Overhead 20R2 '2 General Plant 389 Land and Land Rights Not Trended 390 Structures and Improvements Handy-Whitman Table 6 Line 6 - Structures and Improvements 55R2 0 391 Office Furniture and Equipment Marshall & Swift - Office Equipment 20L1 3 392 Transportation Equipment Not Trended 8L3 15 393 Scores Equipment Marshall & Swift - Warehouse Equtpeent 25L3 0 394 Tools, Shop and Garage Equipment Marshall & Swift - Metalworking Equipment 40L1 0 395 Laboratory Equipment Handy-Whitman Table 19 Line 20 - Meters 40R3 0 396 Power Operated Equipment Marshall & Swift - Contractors Equipment 12L3 7 397 Communication Equipmcnt Not Trended 25L1 0 398 Miscellaneous Equipment Not Trended 30L1 eu Cll OS SS n <

00 ss n CL n Seh C 0

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SeSM W X

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Bradshav Exhibit No. 1 Page 1 of 12 Exhibit J CAROLINA POWER 6 LIGHT COMPANY BALANCE SHEET June 30, 1976 STATEMENT OF INCOME AND STATEMENT OF RETAINED EARNINGS FOR THE TWELVE MO~iS ENDED JUNE 30, 1976

CAROLINA POWER 6c LIGHT* COMPANY Page 2 of 12 BALANCE SHEET, I

June 30, 1976 ASSETS Electric Utility Plant:

Electric utility plant other than nuclear fuel:

In service $ 1,852,851,887 Held for future use 9,427,721 Construction work in progress . 725 359 742 Total 2,587,639,350 Less accumulated depreciation 326 073 470 Net 2 261 565 880 Nuclear fuel:

In service 33,432,734 In process and other 44 388 446 Total 77,821,180 Less accumulated amortization 25 739 649 Net 52 081 531 Electric utility plant - net 2 313 647 411 Other Property and Investments 4 491 568 Current Assets:

Cash in banks 11,673,562 Special deposits for dividends, interest, etc. 23,850 Working funds 152,415 Temporary cash investments 1,000,000 Accounts receivable, net 32,636,332 Materials and supplies:

Fuel 67,392,686 Other 18,902,445 Prepayments, etc. 3 257 354 Total current assets 135 038 644 Deferred Debits:

Accumulated deferred income taxes 6,781,871 Unamortized debt expense 1,477,080 Other 8 307 905 Total deferred debits 16 566 856 Total 2 469 744 479 See Notes to Financial Statements.

I j

'l

CAROLINA POWER & LIGHT COMPANY Page 3 of 12 BALANCE SHEET June 30, 1976 LIABILITIES Capital Stock and Retained Earnings:

Preferred stock, without par value, cumulative (entitled upon liquidation to $ 100 a share) (Note 2) 336,018,400 Common stock subscribed 99,626 Common stock, without par value (Note 2) 567,406,155 Retained earnings (Note 1) 178 060 053 Total capital stock and retained earnings 1 081 584 234 Long-Term Debt (Note 3) 1 105 361 294 Current Liabilities:

Notes Payable:

Banks, Other 51,010,961 Accounts Payable:

Construction contract retentions 5,512,573 Other 21,012,515 Customers'eposits 4,021,581 Taxes accrued 33,013,250 Interest accrued 20,209,982 Dividends declared 26,630,180 Other 3 598 385 Total current liabilities 165 009 427 Deferred Credits:

Customers'dvances for construction 250,111 Investment tax credits 28,890,031 Other 910 003 Total deferred credits 30 050 145 Reserve for Injuries and Damages 843 516 Accumulated Deferred Income Taxes 86,895,863 Commitments and Contingencies (Note 4)

Total 2 469 744 479 See Notes to Financial Statements.

~

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CAROLINA POWER & LIGHT COMPANY Page 4 of 12 STATEMENT OF INCOME For the Twelve Months Ended June 30, 1976 OPERATING REVENUES - ELECTRIC $ 645,386,940 OPERATING EXPENSES:

Fuel 216,717,095 Purchased Power 5,665,429 Other Operation 78,527,732 Maintenance 36,611,664 Depreciation 55,782,236 Taxes:

Taxes other than income 49,163,147 Federal income 37,153,014 State income 5,252,661 Provision for deferred income taxes 8,139,252 Income taxes deferred in prior years (credit) 662,966 Investment tax credit adjustments:

Amount deferred Amortization of amounts deferred (credit) ~* 22,645,311 Total operating expenses 514 593 449 OPERATING INCOME 130 793 491 OTHER INCOME:

Allowance for funds used during construction 53,030,675 Income taxes - credit 16,781,810 Other income (deductions) - net 924 769 Total other income 70 737 254 GROSS INCOME 201 530 745 INTEREST CHARGES:

Long<<term debt 88,988,897 Amortization of debt premium, discount and expense - net 321,960 Other 967 660 Total interest charges 90 278 517 NET INCOME 111,252,228 PREFERRED STOCK DIVIDEND REQUIREMENTS 26 925 908 EARNINGS FOR COMMON STOCK 84 326 320 AVERAGE COMMON SHARES OUTSTAYING 30 942 394 EARNINGS PER SHARE OF COMMON STOCK 2. 73 S ee No tes to F inancial S tatements.

~

~

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CAROLINA POWER 6 LIGHT'OMP%VI Page 5 of 12 STATEMENT OF RETAINED LQQKNGS For the Twelve Months Ended June 30, 1976 Balance, July 1, 1975 $ 145,858,456 Add - Net income for the period 111 252 228 Total 257,110,684 Deduct:

Cash dividends declared:

$5 preferred stock $ 1,186,295 Serial preferred stock - $ 4.20 Series 420,000

- $ 5.44 Series 1,360,000

- $ 9.10 Series 2,730,009

- $ 7.95 Series 2,782,525

- $ 7.72 Series 3,860,000

- $ 8.48 Series 5,512,000 Preferred Stock A - $ 7.45 Series 3,725,000 Preference Stock A - $ 2.675 Series 5,350,079 Common Stock (At Annual Rate of $ 1. 60 a Share) 51 332 620 Total $ 78,258,528 Capital stock expense 129,137 Federal income tax deferred in prior years 662 966 79 050 631 Balance, June 30, 1976 (including $ 6,429,924 restricted for future Federal taxes on income-Note 1) 178 060 053 See Notes to Financial Statements.

f CAROLINA POWER 6r LIGHT COMPANY Page 6 of 12 NOTES TO FINANCIAL STATBKNTS June 30, 1976

1. SKQfARY OF S'IGNIFICANT ACCOUNTING POLICIES S stem of Accounts. The accounting records of the Company are maintained in accordance with uniform systems of accounts prescribed by the Federal Power Commission (FPC) and the regulatory commissions of North Carolina and South Carolina.

Electric Utili Plant. Electric utility plant is stated at original cost. The cost of additions, including replacements of units of property and betterments, is charged to utility plant. The Company includes in the cost of such additions an allowance for funds used during construction (8%). Maintenance and repairs of property and replacements and renewals of items determined to be less than units of property are charged to maintenance expense, The cost of units of property replaced or renewed plus removal costs, less salvage, is charged to accumulated depreciation. Utility plant is subject to the lien of the Company's mortgage.

Allowance for Funds Used Durin Construction. In accordance with the uniform systems of accounts prescribed by regulatory authorities, an allowance for funds used during construction is included in con-struction work in progress and credited to income, recognizing that funds used for construction were provided by borrowings, preferred stock, and common equity. This accounting practice results in the inclusion in utility plant in service of amounts considered by regulatory authorities as an appropriate cost for the purpose of establishing rates for utility charges to customers over the service lives of the property.

De reciation and Amortization. Depreciation of utility plant, other than nuclear fuel, for financial reporting purposes is computed on the straight-line method based on estimated useful lives and charged principally to depreciation expense. Depreciation provisions as a percent of average depreciable property other than nuclear fuel approximated 3.3%. Effective as of October 1, 1975 the Company adopted revised depreciation rates generally reflecting shorter estimated useful lives for utility plant, which increased the provision for depreciation by $ 7,644,000 for the twelve months ended June 30, 1976.

Amortization of nuclear fuel ($ 12,491,,000) is computed on the unit-of-production method and charged to fuel expense.

Deferred Fuel Costs. In 1974, pursuant to state regulatory commission orders, and in January 1975, pursuant to FPC order, the Company put into effect automatic fossil fuel adjustment clauses to recover increased fuel costs. The provisions of the clauses result in a time lag between the date increased fuel cost is incurred and the date such cost is billed to customers. To properly match increased

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Page 7 of 12 fuel costs with the related revenues, the Company defers, except for North Carolina retail operations, increased fuel cost when incurred and expenses it in the month the related revenue is billed. Beginning September 1, 1975 for North Carolina retail operations, the fossil fuel adjustment clause was replaced by an "approved fuel charge" adjustment to basic rates (which results in billing increased fuel costs on a current basis) and the Company was authorized to recover the defexred fossil fuel inventory costs accumulated at August 31, 1975 by a temporary rate surcharge over an approximate twelve-month period, with matching amortization of the deferred costs (see Note 6).

In May 1976, the Company adopted new wholesale rates pursuant to FPC order which included higher'uel costs in basic rates and established the fuel adjustment clause base at the higher, and essentially current, fuel cost level.

Income Taxes. Deferred income tax provisions are recorded only to the extent such amounts are currently allowed for rate-making purposes. In March 1976 (applicable to retail operations) and May 1976 (for wholesale operations), the Company began providing fully for deferred income taxes applicable to all significant timing differences, which resulted in increased income tax expense for the twelve months ended June 30, 1976. These provisions coincided with the recognition of revenues from the placing into effect of new customer billing rates which reflect such costs and, therefore, net income was not materially affected. In compliance with regulatory accounting, income taxes are allocated between Operating Income and Other Income, principally with respect to interest charges related to construction work in progress. See Note 5 with respect to certain other income tax information.

Necessity Certificates permitted amortization over 60-month periods, for Federal income tax purposes, the cost of certain plant facilities completed during the tax period 1952 through 1958. Amounts equivalent to the net reduction in federal taxes on income attributable to the excess of such amortization over depreciation ordinarily deducted were charged against income and the corresponding credit recorded in Account 216 - Retained Earnings Restricted for Future Taxes on Income pursuant to orders of State Regulatory Authorities. In the accompany-ing balance sheet, the accumulated credit of $ 6,429,924 attributable to such accumulated deferred taxes is included in Retained Earnings.

In Financial Statements filed with'he Federal Power Commission and with the Securities and Exchange Commission, the accumulated credit for deferred Federal taxes on income is excluded from Retained Earnings and shown as "Accumulated Deferred Taxes on Income" consistent with the regulations of each of these commissions.

Investment Tax Credits. Investment tax credits generated and utilized after 1971 have been deferred and are being amortized over the, service lives of the property; substantially all credits prior to 1972 were deferred for amortization over five-year periods. At December 31, 1975, the Company had generated but not utilized investment tax credits totaling $ 14,600,000 (see Note 5 for prior years'ax credits eliminated in 1974 and included herein).

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Page 8 of 12 1

Preferred and Preference Dividends. Preferred and preference stock dividends declared and charged to retained earnings include amounts applicable 'to the first quarter of the following year, except for the Preferred Stock A, $ 7.45 Series, issued in 1973, which dividends are wholly applicable to the calendar quarter in which declared.

Retirement Plan. The Company has a non-contributory retirement plan for all regular full-time employees and is funding the costs accrued under the plan. Retirement plan costs for twelve months ended June 30, 1976 were approximately $ 3,504,000. Xn 1975, the Company amended the plan by changing, among other things, vesting provisions to conform with the requirements of the Employee Retirement Income Security Act of 1974, the interest assumption from 4>% to 5%,

and the amortization of the unfunded prior service cost over a period of twenty years from January 1, 1975 instead of from January 1, 1974.

The effect of these changes on periodic net income is not material.

At January 1, 1976, the date of the latest actuarial valuation, the unfunded prior service cost was approximately $ 21 million and the actuarially computed value of vested benefits exceeded assets of the plan by an estimated $ 11 million.

Other Policies. Other property and investments are stated principally at cost, less accumulated depreciation where applicable, except for the investment in its coal mining subsidiary which is accounted for on the equity basis. Temporary cash investments are stated at cost, approximating market value. Materials and supplies inventories are stated at average cost. The Company maintains an allowance for doubtful accounts receivable ($ 915,554). Bond premium, discount and expenses are amortized over the life of the related debt.

2. CAPITAL STOCK Preferred Stock, without par value, cumulative:

$ 5 (authorized, 300,000 shares; outstanding, 237,259 shares) $ 24,375,900 Serial (authorized, 10,000,000 shares):

$ 4.20 Series (outstanding, 100,000 shares) 10,000,000

$ 5.44 Series (outstanding, 250,000 shares) 25,000,000

$ 9.10 Series (outstanding, 300,000 shares) 30,000,000

$ 7.95 Series (outstanding, 350,000 shares) 35,000,000

$ 7.72 Series (outstanding, 500,000 shares) 49,425,000

$ 8.48 Series (outstanding, 650,000 shares) 64,317,500 Preferred Stock A, authorized 5,000,000 shares; outstanding, 500,000 shares of $ 7.45 Series 50 000 000 Total 288 118 400 Preference Stock, without par value, cumulative (authorized, 2,000,000 shares):

$ 2.675 Series A (outstanding, 2,000,000 shares) 47 900 000

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Page 9,of 12 Common Stock, without par value (authorized, 60,000,000 shares):

Outstanding << 32,787,216 shares $ 567,406,155 Subscribed but not issued - 5,142 shares 99 626 Total 567 505 781 At June 30, 1976, 617,088 shares of unissued common stock were

'eserved for issuance under the Stock Purchase-Savings Program for Employees.

The Preferred Stock is callable, in whole or in part, at redemption prices ranging from $ 102 to $ 115 a share plus accumulated dividends. In the event of liquidation, this stock is entitled to

$ 100 a share plus accumulated dividends. The Preferred Stock A,

$ 7.45 Series, has a sinking fund requirement, commencing in 1984, to redeem 20,000 shares annually at $ 100 per share plus accumulated dividends.

The $ 2.675 Preference Stock, Series A, is presently callable in whole or in part at $ 27.68 per share plus accumulated dividends, unless refunding is involved in which case there are substantial limitations on redemption until April 1, 1980; and in the event of liquidation is entitled to $ 25 a share plus accumulated dividends.

The Company's Charter and Bond Indenture, as amended, contain provisions limiting payments of cash dividends on preference and common stock under certain circumstances. At June 30, 1976, none of the retained earnings was restricted under these provisions.

During the twelve months ended June 30, 1976, the Company sold the following shares of capital stock: In October 1975 - 5,000,000 of Common Stock in a public offering; and 219,607 shares of Common Stock under the Company's Stock Purchase Savings Program for Employees.

3. LONG-TERM DEBT First Mortgage Bon ds (principal amounts):

3-1/8% Series, due 1979 $ 20,100,000 3-1/4% Series, due 1979 43,930,000 2-7/8% Series, due 1981 15,000,000 3-1/2% Series, due 1982 20,000,000 ll  % Series, 4-1/8% Series, due due 1984 1988 100,000,000 20,000,000 4-7/8% Series, due 1990 25,000,000 4-1/2% Series, due 1991 25,000,000 4-1/2% Series, due 1994 30,000,000 11-1/8% Series, due 1994 50,000,000 5-1/8% Series, due 1996 30,000,000 6-3/8% Series, due 1997 40,000,000 6-7/8% Series, due 1998 40,000,000 8-3/4% Series, due 2000 40,000,000 8-3/4% Series, due 2000 50,000,000 7-3/8% Series, due 2001 65,000,000

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Page 10 of 12 7-3/4% Series, due 2001 70,000,000 7-3/4% Series, due 2002 100,000,000 7-3/4% Series, due 2003 100,000,000 8-1/8% Series, due 2003 100,000,000 9-3/4% Series, due 2004 125 000 000 Total 1,109,030,000 Miscellaneous Promissory Notes 192 864 Total Long-Term Debt (including current maturities) 1,109,222,864 Less Long-Term Debt due within one year-11-1/8% Series, due 1994 2 000 000 Total Long-Term Debt (excluding current maturities) 1 107 222 864 The Bond Indenture, as amended, contains requirements that addi-tional property be certified or that specific amounts in cash and/or principal amount of bonds be delivered annually to the Trustee as an improvement fund. Current liabilities do not include the current improvement fund requirements ($ 6,700,000 at June 30, 1976) since the Company meets such requirements by the certification of additional property.

Bonds of the 11-1/8% Series, due 1994, shall be redeemed under sinking fund provisions at $ 2,000,000 each year commencing on December 1, 1976, at the principal amount without premium plus accrued interest.

COKIITtKNTS AND CONTINGENCIES At June 30, 1976, firm commitments for construction

$ 425 million plus approximately $ 312 million for initial aggregated'pproximately and replacement nuclear fuel. In addition, the Company has a contract with the Energy Research and Development Administration for nuclear fuel enrichment requirements through June 30, 2002, which is cancellable without penalty upon five years written notice. Payments for enrichment services are anticipated to total $ 133 million during the next five years. Many contracts include escalation provisions.

The Company has entered into agreements with Pickands Mather & Co.

(PM), a firm engaged in owning, operating and managing mineral properties, to develop two adjacent deep coal mines in Pike County, Kentucky, each capable of producing 1,000,000 tons of coal per year over about 25 years. A subsidiary, Leslie Coal Mining Company (LC),

has been formed, owned 80% by the Company and 20% by PM, to construct and develop one of the mines. Significant aspects of LC's financial position are summarized as follows (in thousands):

Total Assets 828 860 Notes Payable to Bank ~26 577

'E Page 11 of 12 The Company has guaranteed the obligations of LC under the terms of bank loan agreements ($ 26.6 million outstanding at June 30, 1976) and a lease financing arrangement ($ 2.4 million obtained through June 30, 1976) which can provide up to $ 49.7 million in funds for the LC mine (currently estimated maximum capital cost is $ 50 million). The Company has further agreed to advance any other funds required by LC to cause LC to complete the mine not later than December 31, 1979. The Company

-and PM have entered into coal puxchase contracts for 80% and 20%,

respectively, of LC's production at prices suffici.ent to meet all of its costs. The adjacent mine is currently expected to cost approxi-mately $ 46.6 million.

Minimum rental commitments under noncancellable leases (except for nuclear fuel) at December 31, 1975, were approximately (in thousands):

ICT

~Pa able Generators Otbeae Teaal 1976 $ 3,800 $ 2,800 $ 6,600 1977 3,800 2,400 6,200 1978 3,800 1,400 5,200 1979 3,800 800 4,600 1980 3,800 700 4,500 1981-1985 19,000 3,400 22,400 1986-1990 19,000 3,100 22,100 1991-1995 19,000 2,300 21,300 Remainder 13,300 6,300 19,600

<<Does not include rentals for building space expected to be occupied in late 1977 with annual rentals expected to approximate $ 2a4 million.

Rentals under a nuclear fuel lease include a component based on energy produced and another computed on the lessor's unamortized acquisition cost ($ 47,100,000 at December 31, 1975 and $ 44,100,000 at June 30, 1976) . Rental payments for nuclear fuel presently under lease are estimated to approximate $ 11,000,000 in 1976 and 1977 and declining each year thereafter through 1980, Under the terms of the leases for the internal combustion turbine (ICT) generators and the nuclear fuel, the Company, under certain circumstances, is contingently liable to purchase the properties from the lessors. The Company is responsible for expenses in connection with most of the leased properties, including insurance, taxes and maintenance.

Electric utility plant at June 30, 1976 includes approximately

$ 15 million representing cost less accumulated depreciation of four hydroelectric projects licensed by the FPC, which licenses expire in 1976, 1993 and 2008. Upon or after expiration of each license, the United States may take over the project, or the FPC may issue a new license either to the Company or a new licensee. In the event of a takeover ox'icensing to another licensee, the Company would be paid its "net investment" in the project, not to exceed fair value, plus, sevexance damages, if any. No provision for amortization reserves as required for the determination of "net investment" has been

1 Page 12 of 12 recorded as such amounts, if any, are considered immaterial. In 1973, the Company applied for a new 50-year license for the Walters Hydroelectric Project which original license expires in 1976. A competing application has been filed by a group of rural electric cooperatives. The Company expects that its license application will be granted.

The Company is a member of Nuclear Mutual Limited, established to provide insurance coverage against property damage to generating facilities. The Company would be subject to a members'uclear maximum assessment of about $ 19 million in the event of losses.

In 1972, the Company committed a total of $ 3,450,000 for research concerning development of the Liquid Metal Fast Breeder Reactor payable in ten equal annual installments through 1981.

Federal income tax returns after 1973 have not been examined.

The Attorney General of North Carolina has appealed to the North Carolina Supreme Court the North Carolina Court of Appeals'ffirmance in May 1976 of an order of the North Carolina Utilities Commission (NCUC) dated December 1974 approving the Company's automatic fossil fuel adjustment clause applicable to North Carolina retail operations.

The Company recorded revenues of $ 71,101,000 in 1975 and $ 60,811,000 in 1974 pursuant to such automatic fossil fuel adjustment clause.

The resolution of the matter is pending. In the opinion of the Company the validity of the fossil fuel adjustment clause will be upheld.

Operating revenues for the twelve months ended June 30, 1976 include $ 63,867,000 subject to possible refund with interest to the extent not finally allowed by pending rate proceedings. Total recorded revenues subject to refund with interest at June 30, 1976 pending final regulatory determinations aggregated $ 89,541,000 and were billed from January 1, 1975 through June 30, 1976. Included in the balance sheet at June 30, 1976 is deferred fuel costs of

$ 3,050,000 which is subject to FPC review and approva1 which may necessitate adjustments, if such review so requires.

The Attorney General of North Carolina appealed to the North Carolina Court of Appeals that portion of the NCUC order of August 27, 1976 which authorized the Company, effective September 1, 1975, to recover through revenues over approximately twelve months deferred fossil fuel costs totaling $ 12,367,000 at August 31, 1975. On August 18, 1976, the Court of Appeals affirmed the NCUC order, but the Attorney General has announced that he will appeal this decision to the North Carolina Supreme Court. From September 1 through June 30, 1976, the Company recorded revenues of $ 11,094,000 applicable to recovery of the previously unbilled deferred fossil fuel costs.

The ultimate outcome of this matter is uncertain pending the filing of an appeal by the Attorney General which is expected and final judicial determination.

Substantial environmental matters are presently pending before various governmental agencies and courts. The Company may, as a result-, incur increased construction or operating expenditures.

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Bradshaw Exhibit No. 2 Exhibit C Carolina Power & Light Company Original Cost of Total Electric Plant Used or Useful in the Public Service June 30, 1976 System Apportioned To Line Total North Carolina No. As Ad'usted Retail 0 erations (2) (3)

Plant in Service:

2 ~ Production 1,447,455,380 '891,591,045 3~ Transmission 282,605,105 173,118,429 4, Distribution (N ~ C.) 413,297,853 407,143,085 5 ~ Dis tribut ion (S. C. ) 80,838,895

6. General 31,071,325 23,446,839

7. Intangible 177 329 118 946

8. Total Plant in Service 2,255,445,887 1,495,418,344

9. Nuclear Fuel:

10. In S tock and In Reac tor 57,026,239 Spent Fuel 10, 352, 724

12. Less accumulated provision for amortization 25 739 649

13. Net nuclear fuel 41 639 314 26 652 080

14. Total Electric Plant 29297,085,201 1,522,070,424

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~ Bradshaw Exhibit No. 3 Exhibit,E Carolina Power 6 Light Company Depreciation The accrued depreciation on said property as shown on Applicant's books adjusted to June 30, 1976, is as follows:

Apportioned To Line Sys tern To tal North Carolina No. Retail 0 erations (2) (3)

$

Accumulated Provision for.

Depreciation:

2 ~ Production 194,938,434 120,076,490 3~ Transmission 34,800,674 21,318,222

4. Distribution 112,435,672 92,641,170

5. General 6 198 115 4 677 180

6. Total Accumulated Provision for Depreciation 348,372, 895 238,713,062 The method used on computing the amount char'ged to depreciation is the straight-line method. The rates used are the following:

7~ Steam Production Plant 3.240

8. Nuclear Production Plant 4.224

9. Hydro Production Plant 1.143

10. Other Production Plant F 000 Transmission Plant 2.274

12. Distribution Plant 3.151

13. General Plant* 3.410

• Composite rate for General Plant after excluding book cost of Transportation Equipment Vehicles Account 392. The provision for depreciation of Transportation Equipment (Automobiles and Trucks) is 'based on the estimated lives thereof. The amount is charged to a clearing account and allocated to operating expenses, construction and other accounts on the basis of the use of such equipment.

l Bradshaw Exhibit No.

CAROLINA POWER & LIGHT COHPAVZ STATEMENT OF REVENUE & EXPENSE ITEHS 12 Months Ended June 30, 1976 System Total Per Books Operating Revenues 8645,386,940 Operating Expenses:

Operating and Maintenance Expenses 337,521,920 Depreciation 55,782,236 Taxes Other Than Income 49,163,147 State Income Taxes 5,252,661 Federal Income Taxes 37,153,014 Provision for Deferred Income Taxes 8,139,252 Income Taxes Deferred in Prior Years (662,966)

Investment Tax Credit - Net 22 244 185 Total Operating Expenses 514 593 449

Bradshaw Exhibit No. 5 CAROLINA POWER 6 LIGHT COMPANY

SUMMARY

OF ADJUSTMENTS For the Twelve Months Ended June 30, 1976 S stem Total

1. Adjust for cost of Management Audit ordered by the North Carolina Utilities Commission 300,000 2.. Adjust for amortization of Craven County plant site 78,407

3. To charge-off expenses of Madison County plant site 187,816 Adjust for normalization of hydro generation 899,394

5. Adjust wages and fringe benefits to normal year 5,471,044 Related taxes 301,603

6. Adjust for postage increase 147,449

7. Adjust for nuclear property insurance 1,419,151

8. Adjust for Research and Development expense 1,979,102

9. Adjust depreciation expense to Plant in Service at June 30, 1976 6,186,000 Related deferred income taxes 9,442,000 Related current income taxes (8,918,000)

10. Adjust depreciation expense for Plant Placed in Service from June 30, 1976 through March 31, 1977 2,142,000

11. Adjust for F.I.C.A. tax increase 66,394

12. Adjust property tax to Plant in Service at June 30, 1976 3,675,301 Plant transferred 6-30-76 through 3-31-77 616,000

13. Adjust rate base for plant transfers June 30, 1976 through March 31, 1977 71,210,000

14. Adjust rate base for nuclear fuel posting error 211,565

15. Adjust working capital for additional Accounts Receivable required 2,419,000

16. Adjust to eliminate Fuel Deferral Revenues (11,759,652)

Expenses (12,234,997)