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TABLE OF CONTENTS SCPPA by Definition Executive Director's Letter Prcsidcnt's Letter The Retail Revolution Operations and Financiais Palo Verde Nuclear Generating Station... 9 San Juan Gcncrating Station Mead-Phoenix/Mead-Adclanto Transmission Projects                   l2 Hoover Uprating Project                   l2 Southern Transmission System               l3 Legislative Advocacy                         l3 Report of Independent Accountants           l7 Combined Balance Sheet                       IS Combined Statement of Operations             l9 Combined Statement of Cash Flows             l9 Notes to Financial Statements               2I Supplemental Financial Information         3I Palo Verde Nuclear Generating Station... 32 Southern Transmission System             36 Hoover Uprating Project                   40 Mead-Phoenix Transmission Project         43 Mead-Adclanto Transmission Project       47 Multiple Project                         5I San Juan Generating Station               53
TABLE OF CONTENTS SCPPA by Definition Executive Director's Letter Prcsidcnt's Letter The Retail Revolution Operations and Financiais Palo Verde Nuclear Generating Station...
9 San Juan Gcncrating Station Mead-Phoenix/Mead-Adclanto Transmission Projects Hoover Uprating Project Southern Transmission System Legislative Advocacy Report of Independent Accountants Combined Balance Sheet l2 l2 l3 l3 l7 IS Combined Statement of Operations Combined Statement of Cash Flows l9 l9 Notes to Financial Statements Supplemental Financial Information 2I 3I Palo Verde Nuclear Generating Station...
32 Southern Transmission System Hoover Uprating Project Mead-Phoenix Transmission Project Mead-Adclanto Transmission Project Multiple Project San Juan Generating Station 36 40 43 47 5I 53


SCPPA BY DEFINITION The Southern California Public Power Authority (SCPPA) is a joint powers authority formed in 1980 to acquire reliable, cost-efficient electrical generation facilities and transmission systems for its members. The membership includes ten municipal utilities and one irrigation district that deliver electricity to nearly two million customers from northern Los Angeles County to the Mexican border.
SCPPA BY DEFINITION The Southern California Public Power Authority (SCPPA) is a joint powers authority formed in 1980 to acquire reliable, cost-efficient electrical generation facilities and transmission systems for its members. The membership includes ten municipal utilities and one irrigation district that deliver electricity to nearly two millioncustomers from northern Los Angeles County to the Mexican border.
Backed by its members'fifnancial strength, SCPPA has issued $ 8.2 billion in bonds, notes and refunding bonds since its inception, of which $ 3.6 billion in principal remains outstanding. With these proceeds the SCPPA members               have jointly purchased                           or refinanced interests in generating and transmission facilities throughout the southwestern United States.
Backed by its members'fifnancial strength, SCPPA has issued $8.2 billionin bonds, notes and refunding bonds since its inception, of which $3.6 billion in principal remains outstanding. With these proceeds the SCPPA members have jointly purchased or refinanced interests in generating and transmission facilities throughout the southwestern United States.
SCPPA's primary role has been to secure financing for these projects, but in                                                       light of pending electric industry restructuring, SCPPA has increasingly helped its members become more competitive and provided legislative and regulatory advocacy at the state and federal. levels. This advocacy ensures that legislators and regulators will consider the needs of public power providers in this region as they propose sweeping changes in laws and regulations affecting the electric industry.
SCPPA's primary role has been to secure financing for these projects, but in light of pending electric industry restructuring, SCPPA has increasingly helped its members become more competitive and provided legislative and regulatory advocacy at the state and federal. levels. This advocacy ensures that legislators and regulators willconsider the needs of public power providers in this region as they propose sweeping changes in laws and regulations affecting the electric industry.
Today's radically shifting economic and political climates pose major challenges for public power providers. SCPPA's sound financial basis and cooperative approach to industry problem-solving will help its members weather the storm and deliver new benefits to their customers.
Today's radically shifting economic and political climates pose major challenges for public power providers. SCPPA's sound financial basis and cooperative approach to industry problem-solving willhelp its members weather the storm and deliver new benefits to their customers.
SCPPA MEMBERS City of Anaheim NEVAOA                  -Q.>Ml
SCPPA MEMBERS City of Anaheim City of Azusa City of Banning City of Burbank City of Colton City of Glendale Imperial Irrigation District Los Angeles Department of Water And Power City of Pasadena City of Riverside City ofVernon NEVAOA
                                                                                                                                              ~    Southern Transmission System
-Q
                                                                                                                                                  ~ Mead-Phoenix City of Azusa                                                                                                                                       Transmission Project ll City of Banning
.>Ml INTTAM Aot cxANYtSl STATI UTAH VSSII SOVIIIIAN sv Dc TTAhlklssloU
                                                      +c ID TATSS INTTAM cxAN Yt Sl Aot                    ~ Mead-Adelanto City of Burbank                                                                                             STATI                                  Transmission Project UTAH 7                                                                                        Q Palo Verde Nuclear City of Colton                                                                               SOVI IIIAN VSSII TTAhlklssloU                                            Generating Station City of Glendale                                                               sv Dc Q Hoover Uprating
+c ID 7
                                                                                                                          ~SANNANIINTT l ADttANTO, Imperial Irrigation District            CONYTATIA MCADADIIANTO                                                                                     Project Los Angeles Department          S I TANTO TATI(AN+co
llTATSS
                                                  +
~SANNANIINTTl
STATION      rtoilctl MSSY AC I tn sa nt m A
> Ftnsintttk AIIIZONA NEW MEXICO TAIO YTADS
t                         AIIIZONA
: ADttANTO, CONYTATIA MCADADIIANTO STATION rtoilctl ITANTO +
                                                                                                                      > Ftnsintttk Q San  juan Generating of Water And Power            IAMSIIAP                                                                                                          Station City of Pasadena              tes   ttts 0         ~ Ivrttsot                 + tl                                                               ~ Member Agencies SS ~
MSSY AC I A
                                          ~ ANAAtlu                                                                 NEW MEXICO City of Riverside                                                  rtottct             IITSTIIINO IO   svssTATIDN City of Vernon                              ININAIkANAIIOS
S TATI(AN+co tn sa nt m IAMSIIAP t
                                                                              ~
tes ttts 0
TAIO YTADS rtoktt
~ Ivrttsot
+ tl SS ~
~ ANAAtlu IITSTIIINO rtottct IO svssTATIDN ININAIkANAIIOS
~ rtoktt
~ Southern Transmission System
~ Mead-Phoenix Transmission Project
~ Mead-Adelanto Transmission Project Q Palo Verde Nuclear Generating Station Q Hoover Uprating Project Q San juan Generating Station
~ Member Agencies


EXECUTIVE DIRECTOR'S LETTER In last year's message I predicted that this fiscal year would be a watershed period for the nation's public utilities and the events     that unfolded proved my penchant for understatement. Debate about electric utility restructuring and competition was highly visible on the U.S. congressional agenda, and legislation that would direct states to begin retail customer access choice by the end of the year 2000 was proposed. The Federal Energy Regulatory Commission continued their move to ensure that the nation's transmission system is open to all in a fair, nondiscriminatory fashion.
EXECUTIVE DIRECTOR'S LETTER In last year's message I predicted that this fiscal year would be a watershed period for the nation's public utilities and the events that unfolded proved my penchant for understatement.
Debate about electric utilityrestructuring and competition was highly visible on the U.S. congressional
: agenda, and legislation that would direct states to begin retail customer access choice by the end of the year 2000 was proposed. The Federal Energy Regulatory Commission continued their move to ensure that the nation's transmission system is open to all in a fair, nondiscriminatory fashion.
In Californi, discussion intensified and the realities of market transformation began to unfold.
In Californi, discussion intensified and the realities of market transformation began to unfold.
In a landmark decision in December, the California Public Utilities Commission issued         a policy decision setting January 1, 1998 as the beginning of direct access for retail customers of the state' investor-owned utilities. The Deregulation Countdown on page 7 further illustrates the timing of the new market scenario.
In a landmark decision in December, the California Public Utilities Commission issued a policy decision setting January 1, 1998 as the beginning of direct access for retail customers of the state' investor-owned utilities.The Deregulation Countdown on page 7 further illustrates the timing of the new market scenario.
During this year SCPPA's staff and its member agencies infused their own considerable energy into representing and protecting public power agencies and their customers in the deregulation continuum. I caned these themes to the U.S. Senate when I testified before its Energy and Natural Resources Committee at a restructuring hearing in March. As SCPPA representatives and       I visited with Members of Congress and staff, we provided them a consumer-owned utilityperspective on the CPUC decision and its impacts, and on proposed federal legislation. These views took on reality for congressional staff members as they toured several SCPPA facilities in April.
During this year SCPPA's staff and its member agencies infused their own considerable energy into representing and protecting public power agencies and their customers in the deregulation continuum. I caned these themes to the U.S. Senate when I testified before its Energy and Natural Resources Committee at a restructuring hearing in March. As SCPPA representatives and I visited withMembers ofCongress and staff, we provided them a consumer-owned utilityperspective on the CPUC decision and its impacts, and on proposed federal legislation. These views took on reality for congressional staff members as they toured several SCPPA facilities in April.


Back at home the SCPPA staff worked to reduce project and overhead costs, and to restructure project debt including a move to increased variable rate debt, thereby lowering project costs.
Back at home the SCPPA staff worked to reduce project and overhead costs, and to restructure project debt including a move to increased variable rate debt, thereby lowering project costs.
SCPPA members spent this year in high gear, delivering reliable power and quality energy services to their customers, while retooling to meet the demands       of the coming open market envi-ronment. The following pages further describe their strategies to reduce costs, increase efficiency, develop new revenue sources, and communicate with their customers, city administrators, and elected officials. SCPPA has served as a catalyst and resource for these efforts.
SCPPA members spent this year in high gear, delivering reliable power and quality energy services to their customers, while retooling to meet the demands of the coming open market envi-ronment. The following pages further describe their strategies to reduce costs, increase efficiency, develop new revenue
: sources, and communicate with their customers, city administrators, and elected officials. SCPPA has served as a catalyst and resource for these efforts.
p 0
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0 Eldon A. Cotton                     Bill D. Carnahan                       Bernard Y. Palk SECRETARY                            PRESIDENT                          VICE PRESIDENT Daniel W.Waters                      Thomas H. MOGuinness EXECVTIYE DIRECTOR                    ASSISTANT SECRETARY Despite the current maelstrom of changing times and markets, SCPPA's mission is becoming progressively clearer. We will continue to support our member utilities'conomic strength and marketing presence as we enter the new millennium.
0 Eldon A. Cotton SECRETARY Daniel W.Waters EXECVTIYE DIRECTOR Bill D. Carnahan PRESIDENT Thomas H. MOGuinness ASSISTANT SECRETARY Bernard Y. Palk VICE PRESIDENT Despite the current maelstrom of changing times and markets, SCPPA's mission is becoming progressively clearer. We will continue to support our member utilities'conomic strength and marketing presence as we enter the new millennium.
Daniel W. Waters Ezcunva DiREcroR
Daniel W. Waters Ezcunva DiREcroR


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In addition to its advocacy and financial benefits, SCPPA helps member agencies develop common strategies, including how to establish Competition Transition Charges. SCPPA serves as a forum for identifying interacfive issues and ferreting out solutions.
In addition to its advocacy and financial benefits, SCPPA helps member agencies develop common strategies, including how to establish Competition Transition Charges. SCPPA serves as a forum for identifying interacfive issues and ferreting out solutions.
Aided by our SCPPA membership, our customers will continue to reap the benefits of local control of public utilities. We know our customers, operate our own generation and transmission system, and can provide more opportunities for value-added energy services. These attributes will make the crucial difference as we head into the coming market environment.
Aided by our SCPPA membership, our customers will continue to reap the benefits of local control of public utilities. We know our customers, operate our own generation and transmission system, and can provide more opportunities for value-added energy services. These attributes will make the crucial difference as we head into the coming market environment.
Bill D. Camahan PREsroHNr
BillD. Camahan PREsroHNr


THE RETAIL REVOLUTION In March 1896, an enterprising businessman bought a franchise from the City of Los Angeles for
THE RETAILREVOLUTION In March 1896, an enterprising businessman bought a franchise from the CityofLos Angeles for
$ 100, permitting the operation of a power system within the city. He and his partners had built a small generating plant outside the city limits the previous December that would supply the proposed system. Since this franchise was to expire within two weeks, he and his three partners, along with their four employees, put on their overalls and feverishly strung wire through the streets and over rooftops of the city. At 4:55 p.m. on April 14, 1896, the first electric lights lit up the City Hall tower.
$100, permitting the operation of a power system within the city. He and his partners had built a small generating plant outside the citylimits the previous December that would supply the proposed system. Since this franchise was to expire within two weeks, he and his three partners, along with their four employees, put on their overalls and feverishly strung wire through the streets and over rooftops of the city.At4:55 p.m. on April14, 1896, the first electric lights litup the City Hall tower.
This tiny company owned the exclusive right to sell power to its customers, along THE COMPETITION with the exclusive responsibility to maintain near-perfect service and develop new                     TRANSITION CHARGE (CTC) power supplies to support the explosive growth to come.                                                 Reeonnfing the Past toith the Future This scenario was repeated in burgeoning cities throughout Southern California in                 Under tho proposed CTC, consumers who choose to change electricity suppliers the 1890s. Small companies built and operated generation resources and transmission                    would pay a monthly surcharge on their electricity bill.The purpose of this surcharge ls to infrastructure, and kept up with the insatiable thirst for power of a population fresh off              ensure that the cost of retiring the debt on exisdng power, infrastructure does not shift to the new trains from the east.                                                                          the customers who remain with their uuhty. In many cases, Some of these cities later bought the electrical systems within their boundaries,                  the remaining customers are likely to be residential and small business customers, while acquiring the same exclusive rights and responsibilities to their customers. To purchase                the ones who change suppliers will be the large commercial/
This tiny company owned the exclusive right to sell power to its customers, along with the exclusive responsibility to maintain near-perfect service and develop new power supplies to support the explosive growth to come.
This scenario was repeated in burgeoning cities throughout Southern California in the 1890s. Small companies built and operated generation resources and transmission infrastructure, and kept up with the insatiable thirst for power ofa population fresh off the new trains from the east.
Some of these cities later bought the electrical systems within their boundaries, acquiring the same exclusive rights and responsibilities to their customers. To purchase the new generation and transmission systems they needed, they would subsequently pool their financial resources in the Southern California Public Power Authority.
- THE COMPETITION TRANSITION CHARGE (CTC)
Reeonnfing the Past toith the Future Under tho proposed CTC, consumers who choose to change electricity suppliers would pay a monthly surcharge on their electricity bill.The purpose of this surcharge ls to ensure that the cost ofretiring the debt on exisdng power, infrastructure does not shift to the customers who remain with their uuhty. In many cases, the remaining customers are likelyto be residential and small business customers, while the ones who change suppliers willbe the large commercial/
industrial customers.
industrial customers.
the new generation and transmission systems they needed, they would subsequently pool their financial resources in the Southern California Public Power Authority.
In March 1996, descendants ofprivate companies like that firstprivate partnership filed to divest themselves of their generating plants voluntarily. This followed on the decision the previous December by the California Public Utilities Commission to open market access to the power infra-structure initiated 100 years ago. Afew weeks later, inApril1996, these private power companies filed to create a Power Exchange, into which they would sell their generation, and an Independent System Operator to operate and manage the state's transmission system.
In March 1996, descendants of private companies like that first private partnership filed to divest themselves of their generating plants voluntarily. This followed on the decision the previous December by the California Public Utilities Commission to open market access to the power infra-structure initiated 100 years ago. A few weeks   later, in April1996, these private power companies filed to create a Power Exchange, into which they would sell their generation, and an Independent System Operator to operate and manage the state's transmission system.


clTY OF ANAHEIM As the City's sole power provider for more that l00 years, tho Anaheim Public Utilities Department has              The municipal power companies, although not directly regulated by the now positioned Itself for dereguladon and competition. In I4arch 1996, cominerclal        CPUC, willparticipate and compete in this market-based environment... a whole and industrial customers saw a rato decrease of up to five percent. Reslden.
Custome Served:..........
tlal rates remained stable, already set        new world.
Power Generated and Purchased (In Hegawatt.Hours)
approximately 25 percent lower than thoso In neighboring communities. Taking advantage of a unique opportunity, the Department entered into a landmark              wHv nEREaumTE7            Historically, the regulatory compact provided exclusive publicfprivate partnership to utilize Its fiber optic cable This partnership will pro-vide the community with access to a            service territories and rates sufficient to cover utilities'costs. In the 1970s, utilities VnlversalTelecommunications System In I 997.
Self-generated Purchased.............
were facing demand growth of seven percent per year, and were forbidden by Custome     Served:..........       I 04,805 Power Generated and Purchased (In Hegawatt.Hours)                             federal law from burning natural gas in utility boilers. This led to investments in Self-generated                   880,7 I 5 Purchased.............         l,973, I I 0 Total ...............
Total...............
Transmhslon (In mlles) 2,853,825 I>417 nuclear and coal fueled generating plants.
Transmhslon (In mlles)
Total Revenues (000's)
Total Revenues (000's).......
Operating Costs (000's)
Operating Costs (000's)
                        .......   $ 246,479
I04,805 880,7 I5 l,973, I I0 2,853,825 I>417
                                  $ I 97,895 In recent years the California government mandated investment in renewable energy sources and promotion of energy efficiency. In this era the utilities provided a complete electric system. They also had the obligation to plan and develop facilities to cover future electric needs and were accountable for near-perfect service to all customers. As a result of the move to protect the environment and promote renewable resources, investor-owned utility gOU) rates in California were 50 percent higher than the national average. The rates of consumer-owned utilities like the SCPPA member agencies were generally 15 to 30 percent lower than those of the IOUs.
$ 246,479
$ I97,895 clTY OF ANAHEIM As the City's sole power provider for more that l00 years, tho Anaheim Public Utilities Department has now positioned Itselffor dereguladon and competition. In I4arch 1996, cominerclal and industrial customers saw a rato decrease of up to five percent.
Reslden.
tlal rates remained stable, already set approximately 25 percent lower than thoso In neighboring communities. Taking advantage of a unique opportunity, the Department entered into a landmark publicfprivate partnership to utilize Its fiber optic cable This partnership willpro-vide the community with access to a VnlversalTelecommunications System In I997.
The municipal power companies, although not directly regulated by the CPUC, willparticipate and compete in this market-based environment... a whole new world.
wHv nEREaumTE7 Historically, the regulatory compact provided exclusive service territories and rates sufficient to cover utilities'costs. In the 1970s, utilities were facing demand growth of seven percent per year, and were forbidden by federal law from burning natural gas in utilityboilers. This led to investments in nuclear and coal fueled generating plants.
In recent years the California government mandated investment in renewable energy sources and promotion of energy efficiency. In this era the utilities provided a complete electric system. They also had the obligation to plan and develop facilities to cover future electric needs and were accountable for near-perfect service to all customers. As a result of the move to protect the environment and promote renewable resources, investor-owned utility gOU) rates in California were 50 percent higher than the national average. The rates of consumer-owned utilities like the SCPPA member agencies were generally 15 to 30 percent lower than those of the IOUs.
These high rates are driving the move to deregulation in Californi.
These high rates are driving the move to deregulation in Californi.
New technology enables new projects to generate electricity at lower cost using relatively inex-pensive natural gas. At the same time, global economic forces are pressuring California's industries to become more competitive. These customers want the immediate benefit of the new generation technology and lower electricity bills.
New technology enables new projects to generate electricity at lower cost using relatively inex-pensive natural gas. At the same time, global economic forces are pressuring California's industries to become more competitive. These customers want the immediate benefit of the new generation technology and lower electricity bills.
In the new world of deregulated power supply, industrial customers will have            access to an open market in which they can buy electricity from the lowest bidder.
In the new world of deregulated power supply, industrial customers willhave access to an open market in which they can buy electricity from the lowest bidder.
9dEh5aaR AaEPgciES       IN ACTloN The eleven SCPPA member agencies have been planning for the new market transformation for the last few years. This past fiscal year has seen the most active
9dEh5aaR AaEPgciES IN ACTloN The eleven SCPPA member agencies have been planning for the new market transformation for the last few years. This past fiscal year has seen the most active


PASSWORDS TO A NEW ERA AGGREGATORS - Brokers who seek to bring together
PASSWORDS TO A NEW ERA OVARY Ii Five.year phase-In iirect retail access for IOUs ins: Largo customers may ose alternate generation pliers. IOUs must bid all eratlon into Power Exchange satisfy customers'nergy ds by buying from the Power hange. Customers choosing mate suppliers pay CTC.
                                                                                                                            , customers to create a "load" so that they can buy power in bulk, DEREGULATION COUNTDOWN                                                            making a profit on the sale.
DEREGULATION COUNTDOWN Direct retail access for all customers begins.
COMPETITION TRANSITION CHARGE (CTC) A non--
IOUs no longer must bid generation into the Powci Exchange.
bypassable fec paid by retail customers to their former power supplier when taking service from an alternative Direct retail access for supplier. This fee reflects the all customers begins.
CTC ends.
difference between a stranded IOUs no longer must                                                                asset's market price and its cost.
2003 National Energy Policy Act gives FERC authority to order open transmission access.
bid generation into                                                                The purpose Is to avoid cost the Powci Exchange.                                                                shifting, and to enable utilities to CTC ends.                                                                          retire debt and compete fairly.
AGGREGATORS - Brokers who seek to bring together
OVARY Ii Five. year phase-In iirect retail access for IOUs ins: Largo customers may ose alternate generation 2003                                                                          COST BASED RATEMAKING Regulated rates based on costs expended.
, customers to create a "load" so that they can buy power in bulk, making a profit on the sale.
pliers. IOUs must bid all National Energy                  COST SHIFTING Moving-eratlon into Power Exchange                                                                                                  cost Increases or decreases to Policy Act gives FERC satisfy customers'nergy                                                                                                      classes of customers, a.g. to authority to order ds by buying from the Power                                                                                                  residential from industrial or to open transmission hange. Customers choosing                                                                                                    commercial from residential.
COMPETITIONTRANSITION CHARGE (CTC) - A non-bypassable fec paid by retail customers to their former power supplier when taking service from an alternative supplier. This fee reflects the difference between a stranded asset's market price and its cost.
access.
The purpose Is to avoid cost shifting, and to enable utilities to retire debt and compete fairly.
mate suppliers pay CTC.
COST BASED RATEMAKING Regulated rates based on costs expended.
DIRECT ACCESS       - Abilityof a power producer to sell directly to thc retail customer.
COST SHIFTING-Moving cost Increases or decreases to classes ofcustomers, a.g. to residential from industrial or to commercial from residential.
INDEPENDENT SYSTEM OPERATOR      (ISO)-
DIRECT ACCESS - Abilityof a power producer to sell directly to thc retail customer.
CPUC Issues       Independent manager of trans-y li +                                                                          draft rulemaklng   mission lines which assures safe p                                    envisioning futuro where customers choose among competing generation pioviders, and performance-and fair transfer of electricity from generators to distribution companies INTEGRATED UTILITY 0                        based ratcmaking replaces traditional castoff-service A company that provides a ructurlnglfunctlonal                                                                                                          complete electric system, ndling. IOUs to file ratcmaklng.                      generation transmission and icatlons to transfer                                                                                                          distribution services, for Its
ructurlnglfunctlonal ndling. IOUs to file icatlons to transfer
: e. CPUC to ensure                                                                                                              customers.
: e. CPUC to ensure al consumer protection ores are in place.
al consumer protection PERFORMANCE BASED ores are in place.                                                                                                          RATEMAKING(PBR)
li + y p
X995 MARCH: FERC issues Notice of Proposed Regula(ed rates based on performance objectives, not on actual costs.
0 MARCH: IOUs apply for voluntary divestiture of 50 percent offossil generation.
Rulemaklng (NOPR) proposing significant                                               -A POWER EXCHANGE (PX) changes in transmission scrvicc regulation.
APRIL Draft of ISO/Power Exchange filingavailablo to stakcholders. IOUs file proposals to establish ISO and Power Exchange.
MARCH: IOUs apply for                                                                          spot prico market for electricity Goal: to deny transmission facility owners voluntary divestiture of                                                                      into which power generators unfair advantage over competitors.                      could sell their electricity and 50 percent of fossil generation.
JULY: IOUs apply for performance-based ratemaklng.
from which retail and wholesale MAY: CPUC issues proposal that electric                 customers could buy.
CPUC Issues draft rulemaklng envisioning futuro where customers choose among competing generation pioviders, and performance-based ratcmaking replaces traditional castoff-service ratcmaklng.
gcncrators should sell power to independent APRIL Draft of ISO/Power              system operator (ISO), which would distributo           RESTRUCTURING Exchange filing availablo              power to Californians at lower price than               Reconliguring tha market to stakcholders. IOUs file            currently paying. A new Power Exchange                 structure by eliminating tha proposals to establish ISO            would create a wholesale power pool where               monopoly on the essential func-and Power Exchange.                    all suppliers could sell electricity according to       tions of an electric company.
X995 MARCH: FERC issues Notice of Proposed Rulemaklng (NOPR) proposing significant changes in transmission scrvicc regulation.
established competitive bidding procedures.             RETAIL WHEELING Tile JULY: IOUs apply    for performance-based                                                                              ability of generation companies DECEMBERi CPUC adopts final policy                     or brokers to sell directly to ratemaklng.                            which Includes the following: Creates a Power           retail customers, utilizing regu-Exchange starting Jan. I, I 998. Initiates direct       lated transmission lines and the access for retail customers with five-year             distribution services of existing phase-In and proposes competition transition           utility companies.
Goal: to deny transmission facilityowners unfair advantage over competitors.
charge (CTC). Creates ISO for the trans-mission grid. Develops performance-bascd               STRANDED INVESTMENT OR STRANDED ASSETS ratemaking for IOUs. Requires real-time rate           Gcncration facilities, owned by and time-of.usc rate options.                           existing utility companies, that produce electricity at above-markct marginal prices.
MAY: CPUC issues proposal that electric gcncrators should sell power to independent system operator (ISO), which would distributo power to Californians at lower price than currently paying. A new Power Exchange would create a wholesale power pool where all suppliers could sell electricity according to established competitive bidding procedures.
UNBUNDLED RATES Separate itcmlzcd charges for generation, transmission, distrib-ution, and other services.
DECEMBERi CPUC adopts final policy which Includes the following:Creates a Power Exchange starting Jan. I, I 998. Initiates direct access for retail customers with five-year phase-In and proposes competition transition charge (CTC). Creates ISO for the trans-mission grid. Develops performance-bascd ratemaking for IOUs. Requires real-time rate and time-of.usc rate options.
INDEPENDENT SYSTEM OPERATOR (ISO)-
Independent manager of trans-mission lines which assures safe and fair transfer of electricity from generators to distribution companies INTEGRATED UTILITY A company that provides a complete electric system, generation transmission and distribution services, for Its customers.
PERFORMANCE BASED RATEMAKING(PBR)
Regula(ed rates based on performance objectives, not on actual costs.
POWER EXCHANGE (PX) - A spot prico market for electricity into which power generators could sell their electricity and from which retail and wholesale customers could buy.
RESTRUCTURING Reconliguring tha market structure by eliminating tha monopoly on the essential func-tions of an electric company.
RETAILWHEELING Tile ability of generation companies or brokers to sell directly to retail customers, utilizing regu-lated transmission lines and the distribution services of existing utilitycompanies.
STRANDED INVESTMENTOR STRANDED ASSETS Gcncration facilities, owned by existing utilitycompanies, that produce electricity at above-markct marginal prices.
UNBUNDLEDRATES Separate itcmlzcd charges for generation, transmission, distrib-ution, and other services.
UNBUNDLED SERVICES Customer can select which services they want and which company provides them WHOLESALE WHEELING Selling electricity to wholesale buyers for resale to retail customers
UNBUNDLED SERVICES Customer can select which services they want and which company provides them WHOLESALE WHEELING Selling electricity to wholesale buyers for resale to retail customers


fulfillment of their transformation plans to date. The agencies have put significant time and effort into many of these activities:
fulfillmentof their transformation plans to date. The agencies have put significant time and effort into many of these activities:
~ Communicating       with city councils, utility boards, and major customers about the deregulation process, its implications, and the member agencies'preparation for it.
~ Communicating with city councils, utility boards, and major customers about the deregulation process, its implications, and the member agencies'preparation for it.
JOSEPH FI HSV
~ Downsizing and reorganizing staff.
~ Downsizing and reorganizing staff.
~ Transforming from engineering-based         to customer-focused corporate culture.
~ Transforming from engineering-based to customer-focused corporate culture.
~ Becoming more familiar with customer needs and planning new products and               clTY oF AzvsA Tho city's electric I was established ln I 898, and for most services.                                                                           history Azusa purchased electricity w sale from Southern California Ed Since tho mid.l980s, through succr
~ Becoming more familiar with customer needs and planning new products and services.
~ Aggressively cutting costs     while maintaining service reliability.                 litigation against Edison on transmi access, Azusa began to obtain short
~ Aggressively cutting costs while maintaining service reliability.
~ Preparing new unbundled and time-of-use rate structures.                               long. term contracts with other utiliti well as from SCPPA, by particlpath Palo Verde Nuclear Generadng Se
~ Preparing new unbundled and time-of-use rate structures.
~   Working on reducing transfers to their cities'general funds.                         Hoover Hydroelectric Plant, and San Generating Station Unit ¹3. By havln,
~ Working on reducing transfers to their cities'general funds.
~ Renegotiating power contracts to cut costs.                                           ability to diversify its power supply ol tlons, Azusa has maintained its retail              i
~ Renegotiating power contracts to cut costs.
~ Meeting off-balance sheet debt obligations.                                           at tho l983 level.These compedtivo                  i w/II help tho city make a less stressful sltlon toward tho deregulated
~ Meeting off-balance sheet debt obligations.
~ Pursuing revenue       enhancement   opportunities, such as leasing poles and                                             m'nvironment.
~ Pursuing revenue enhancement opportunities, such as leasing poles and conduit for fiber optics and other telecommunications activities.
conduit for fiber optics and other telecommunications activities.                   Customers  Served:.........              i4 Power Generated and Purchased (in H egawatt. Hours)
~ Adopting a Competition Transition Charge.
~ Adopting a Competition Transition Charge.                                               Self.genensted:  ..........
~ Reducing project operating and maintenance costs.
Purchased:.............          422 Sales
~ Renegotiating fuel contracts.
~ Reducing project operating and maintenance costs.                                         Recall:                          220 Wholesale:                        202
~ Renegotiating fuel contracts.                                                         Total Revenues  (000s):.......    $ 23 Operating Costs (000s):    ......  $ 20 rVrued lted
~ Reducing debt service by refinancing at lower interest rates.
~ Reducing debt service by refinancing at lower interest rates.
~ Moving to more variable rate debt.
~ Moving to more variable rate debt.
~ Pursuing aggressive legislative advocacy.
~ Pursuing aggressive legislative advocacy.
set PA   JN AcTJON     The last three items above are the particular expertise and benefit that SCPPA brought its member agencies during this fiscal year. Moreover, SCPPA staff members have adopted the new streamlined business atmosphere of the member agencies by"doing more with less" in all aspects of operations. It has been a year of unprecedented energy and accomplishment.
JOSEPH FI HSV Customers Served:.........
Power Generated and Purchased (in Hegawatt. Hours)
Self.genensted:..........
Purchased:.............
Sales Recall:
Wholesale:
Total Revenues (000s):.......
Operating Costs (000s):......
rVrued lted i4 422 220 202
$ 23
$ 20 clTY oF AzvsA Tho city's electric I was established ln I 898, and formost history Azusa purchased electricity w sale from Southern California Ed Since tho mid.l980s, through succr litigation against Edison on transmi access, Azusa began to obtain short long.term contracts withother utiliti well as from SCPPA, by particlpath Palo Verde Nuclear Generadng Se Hoover Hydroelectric Plant, and San Generating Station Unit¹3. By havln, ability to diversify its power supply ol tlons, Azusa has maintained its retail i
at tho l983 level.These compedtivo i
w/IIhelp tho city make a less stressful sltlon toward tho deregulated m'nvironment.
set PA JN AcTJON The last three items above are the particular expertise and benefit that SCPPA brought its member agencies during this fiscal year. Moreover, SCPPA staff members have adopted the new streamlined business atmosphere of the member agencies by"doing more with less" in all aspects of operations. Ithas been a year of unprecedented energy and accomplishment.


PAUL TOOR OPERATIONS AND FINANCIALS CITY OF OAHHIHG Established ln I 9 I 3,the Banning electrical system now serves an area of approxi-As of Oetober 31, 1996                                                                                    Iveighted Average                  Bond Ratings                  mately 2I square miles. The city owns a SCPPA BONDS Hoover Uprating Project Cost
PAULTOOR OPERATIONS AND FINANCIALS CITY OF OAHHIHG As ofOetober 31, 1996 SCPPA BONDS Hoover Uprating Project Southern Transmission System Project Seruor Uen Bonds Subordinate Uen Bonds'alo Verde Project Senior Uen Bonds 1992 Subordinate Uen Bonds'ubordinate Uen Bonds'ead-Adelanto Transmission Project Insured Refunding Bonds'onrefunded Bonds'ead-Phoenix TransmLsion Project Insured Refunding Bonds'onrefunded Bonds'ultiple Project'an Juan Unit 3 Project'stimated Iveighted Average Cost ofCapitatt
                                                                                                          ~)of Capitatt 6.11 hfood~slnvestor            Standard Ibor's
~)
                                                                                                                                                                    &      pordon of San Juan Unit 3 and a portion of Mead Adelanto and Mead-Phoenix transmission lines. In addition, the city Southern Transmission System Project                                                                        432                                                              owns a distribution system and four sub-Seruor Uen Bonds                                                                                                                Aa                      AA-            statlons to serve the customers. Being a Subordinate Uen                                                                                                            Aaa/VMG1                  AAA/A-1+          full service city, Banning's load mix is Verde Project Bonds'alo strengthened by Industrial customers, Senior Uen Bonds                                                                                                                A1                      AA-            with more Industrial projects on the way.
6.11 432 SAO SA8 6.21 5.12 Bond Ratings Standard &
Project'stimated 1992 Subordinate Uen Uen                                          Bonds'ubordinate Aaa Aaa/VMIG1 AAA AAA/A-1+
Ibor's Aa Aaa/VMG1 AA-AAA/A-1+
A1 Aaa Aaa/VMIG1 AA-AAA AAA/A-1+
Aaa A
A Aaa AAA A
A AAA hfood~slnvestor Customers Served:.........
Power Generated and Purchased (In Megawatt-Hours)
Self~en eratedt Purchased:.............
Total...............
Transmission (in miles)
Total Revenues (000s):.......
Operating Costs (000s)I......
9,0$ 0 0
I I7,879 I I7,87 I l22
$ I3,230
$ I2,7$ 0 Established ln I 9 I3,the Banning electrical system now serves an area of approxi-mately 2I square miles. The city owns a pordon of San Juan Unit 3 and a portion of Mead Adelanto and Mead-Phoenix transmission lines. In addition, the city owns a distribution system and four sub-statlons to serve the customers. Being a full service city, Banning's load mix is strengthened by Industrial customers, with more Industrial projects on the way.
Major distribution system improvements are also ln progress.
Major distribution system improvements are also ln progress.
Transmission Project Bonds'ead-Adelanto SAO                                                              Customers    Served:.........            9,0$ 0 Insured Refunding                                                                                                                                                      Power Generated and Purchased Bonds'onrefunded (In Megawatt-Hours)
'nsured; 1991 Suhndinate Van'able Rate Bonds QMBAC)t1996 Subordinate Snies A Bonds (MBIA)/1996Subordinate van'able Rate genes B Bonds (ESA).
Self~en eratedt                            0 SA8                                                                Purchased:.............
IInsund: 1992 Senior IfmBonds QMBAC); 1993 Subordinate Bonds (IGIC); 1996 Suhndinate Snies A Bonds QAIBAC),'996 Subordfnate Vanabie Rate Senes B and C Bonds QI(IBAC).
Bonds'ead-Phoenix TransmLsion Project                                                                                                                                                                        I I 7,879 Insured Refunding Bonds'onrefunded Aaa A
IInsund: 1994 Sen'es A Bonds (AMBAC),
AAA A
Total  ...............
Transmission (in miles)
I I 7,87 I l22 A            Total Revenues  (000s):.......    $ I3,230 A
Bonds'ultiple 6.21 Operating Costs (000s)I            $ I2,7$ 0 Project'an Juan Unit 3                                                                                          5.12                      Aaa                    AAA
'nsured; 1991 Suhndinate Van'able Rate Bonds QMBAC)t 1996 Subordinate Snies A Bonds (MBIA)/1996Subordinate van'able Rate genes B Bonds (ESA).
I Insund: 1992 Senior Ifm Bonds QMBAC); 1993 Subordinate                                           Bonds (IGIC); 1996 Suhndinate Snies A Bonds QAIBAC),'996 Subordfnate Vanabie Rate Senes B and C Bonds QI(IBAC).
I Insund: 1994 Sen'es A Bonds (AMBAC),
Unmmmittof bond promds eecund by a guarantmi rate Investment contract.
Unmmmittof bond promds eecund by a guarantmi rate Investment contract.
I Insund: 1993 genes A Bonds (MBIA).
IInsund: 1993 genes A Bonds (MBIA).
IAilgenemtion bonds: 466%; ali transmissum bonds: 512%; eomhned gennntion and transmission: 500%
IAilgenemtion bonds: 466%; ali transmissum bonds: 512%; eomhned gennntion and transmission: 500%
During the fiscal year, SCPPA continued to monitor the financial markets and address opportu-nities to reduce its fixed interest costs.
During the fiscal year, SCPPA continued to monitor the financial markets and address opportu-nities to reduce its fixed interest costs.
SCPPA refunded $ 222.2 million in PaloVerde Project bonds which were originally issued in 1986 and 1987. The 1996 refunding bonds consisted of sales of $ 152.9 million in Series                                                                                     A fixed rate     bonds in February, and $58.9 million in Series B variable rate obligations in April. These insured revenue bonds will produce estimated present value savings of $ 29.5 million, or 14 percent of the refunding bonds.
SCPPA refunded $222.2 millionin PaloVerde Project bonds which were originallyissued in 1986 and 1987. The 1996 refunding bonds consisted of sales of $152.9 millionin Series Afixed rate bonds in February, and $58.9 million in Series B variable rate obligations in April.These insured revenue bonds willproduce estimated present value savings of $29.5 million, or 14 percent of the refunding bonds.
As the fiscal year ended, SCPPA was working on a similar two-part refunding for the Southern Transmission System, and an additional variable rate issue for Palo Verde.
As the fiscal year ended, SCPPA was working on a similar two-part refunding for the Southern Transmission System, and an additional variable rate issue for Palo Verde.
Following is a status report on SCPPA's generating and transmission projects.
Following is a status report on SCPPA's generating and transmission projects.
PALO VERDE OPERATIONS                                                                       PALO VERDE NUCLEAR GENERATING                                         199$ 90 OPERATIONS Generation      Ca(tacity (Millionsof    Utiiuation MIVHs)            (%)
PALO VERDE OPERATIONS PALO VERDE NUCLEAR GENERATING sTATIDN (PvNGS)
sTATIDN (PvNGS)                                                                       Ten SCPPA members (all but the City of Unit 1                9.8 Unit 2                9.2 Anaheim) share a 5.91 percent interest in the three units of PVNGS,                                                                                   Unit 3 entitling them to 225 megawatts of power. SCPPA continues to                                                                                         Agg"ga<<
Ten SCPPA members (all but the City of Anaheim) share a 5.91 percent interest in the three units ofPVNGS, Unit 1 Unit 2 Unit 3 Generation (Millionsof MIVHs) 9.8 9.2 Ca(tacity Utiiuation
Industry average                   69.9
(%)
199$ 90 OPERATIONS entitling them to 225 megawatts of power. SCPPA continues to Agg"ga<<
Industry average 69.9


work with the operating agent, Arizona Public Service (APS), to increase output and lower costs in order to make Palo Verde a competitive and dependable resource.
work with the operating agent, Arizona Public Service (APS), to increase output and lower costs in order to make Palo Verde a competitive and dependable resource.
Palo Verde began a reengineering           of work processes and organization in September 1993. Thus far, the reengineering effort has yielded lower costs, higher output, higher                 PRODUCTION COST I      >>>dhkiswmcr  N>>ch>>cr>>ce Ckieadhr ratings by the Nuclear Regulatory Commission (NRC) and the Institute of                     Year          per klVh 1993              2.02 1994              1.93 Nuclear Power Operations (INPO), shorter refueling outages, and better 1995             1.61 teamwork and morale.
Palo Verde began a reengineering of work processes and organization in September 1993. Thus far, the reengineering effort has yielded lower costs, higher output, higher ratings by the Nuclear Regulatory Commission (NRC) and the Institute of Nuclear Power Operations (INPO), shorter refueling outages, and better teamwork and morale.
                                                                                                    ~ >
Ckieadhr Year 1993 1994 1995 per klVh 2.02 1.93 1.61 PRODUCTION COST I
: v. l.-   ~ >
>>>dhkiswmcr N>>ch>>cr>>ce v.
< l.-
~ >
PaloVerdo's Spring l 996 refueling outage for Unit 2 was completed in a record 49 days.
I I
I I
c PaloVerdo's Spring l 996 refueling outage for Unit 2 was completed in a record 49 days.
~
INPO conducted a two-week evaluation of PVNGS in October 1995 and issued its first "1" rating, indicating that PVNGS achieved the highest level of exceHence in nuclear plant operation. The AOIIAIOY     SYASSI                                   high rating is expected to reduce PVNGS'insurance costs by nearly $ 1 million per year.
c INPO conducted a two-week evaluation of PVNGS in October 1995 and issued its first "1" rating, indicating that PVNGS achieved the highest level of exceHence in nuclear plant operation. The AOIIAIOY SYASSI t>>I
t>>I       ')   r,     i);.,Ikj >
') r, i);.,Ikj>
The NRC's latest Systematic Assessment of Licensee Performance (SALP) report clTY oF nunaatex            Burbank's Public          gave PVNGS ratings      of"1"in Operations, Maintenance, and Engineering, and"2>vin Service f3epartment began serving cus-tomers In I 9 I 3,and installed onwlte gen-eration ln response to a surge in industri-          Plant Support. "1" is the highest rating, and represents superior safety performance al and residential growth In tho 1940's and I 950's.Today the city receives power from which exceeds NRC standards. In the previous assessment period, PVNGS received three SCPPA projects, the Bonneville Power Admlnhtratlon, as well as firm and Interruptible supplies from other utilities          "2" ratings in all four categories. The NRC noted that APS has established new and government agencies.
Customers Served:.........
Customers   Served:.........                        programs and processes necessary to achieve and sustain superior performance.
Power Generated and pe>chased (ln Hegawatt-I4ours)
Power Generated and pe>chased (ln Hegawatt-I4ours)
Self.generated                         I 0 I,078 Purchased Total
Self.generated Purchased.............
                .............             928,0 I I I,029,098 Transmission (In Miles).......                   398 Total Revenues (000'I)
Total Transmission (In Miles).......
Total Revenues (000'I).......
Operating Costs (000's)
Operating Costs (000's)
                        .......      8 94,430 8 93>744
I0 I,078 928,0 I I I,029,098 398 8
94,430 8
93>744 clTY oF nunaatex Burbank's Public Service f3epartment began serving cus-tomers In I 9 I3,and installed onwlte gen-eration ln response to a surge in industri-al and residential growth In tho 1940's and I 950's.Today the city receives power from three SCPPA projects, the Bonneville Power Admlnhtratlon, as well as firm and Interruptible supplies from other utilities and government agencies.
high rating is expected to reduce PVNGS'insurance costs by nearly $1 millionper year.
The NRC's latest Systematic Assessment ofLicensee Performance (SALP) report gave PVNGS ratings of"1"in Operations, Maintenance, and Engineering, and"2>vin Plant Support. "1"is the highest rating, and represents superior safety performance which exceeds NRC standards. In the previous assessment period, PVNGS received "2" ratings in all four categories. The NRC noted that APS has established new programs and processes necessary to achieve and sustain superior performance.


THOMAS K CtARKE Corrective measures           implemented following a tube rupture in one of crrv os cotTDH The Colton munidpal electric utility was established in I 895, Unit 2's steam generators in 1993 have allowed operation at full capacity,                     eight years after city incorporation. Since I 986,the electric utilityhas changed from being solely dependent on Southern but the operating agent has recommended replacement of unit 2's two steam                       California Edison for its purchased power to being actively engaged in purchasing generators,         perhaps within the next ten years, due to safety and economy               power from several different sources, achieving significant cost savings in the process.
THOMAS K CtARKE Corrective measures implemented following a tube rupture in one of Unit 2's steam generators in 1993 have allowed operation at full capacity, but the operating agent has recommended replacement of unit 2's two steam generators, perhaps within the next ten years, due to safety and economy reasons. If the co-owners of PVNGS decide to replace the steam generators, SCPPA's share of the cost is estimated at approximately $9 millionand would be expended over approximately six years.
reasons.     If the co-owners of PVNGS           decide to replace the steam generators,       Customers     Served:.........         15,932 Power Generated and Purchased (in ldegawatt.Hours)
One owner of PVNGS, El Paso Electric Company, has been under bankruptcy protection since 1992, and filed its Fourth Amended Stand Alone Plan Customers Served:.........
SCPPA's share          of the cost is estimated at approximately $9 million and would be            Sclf~ncratcd                             0 Purchased   .............
15,932 Power Generated and Purchased (in ldegawatt.Hours)
Total ..............         ~ ~
Sclf~ncratcd Purchased.............
241,582 24 I,582 expended over approximately six years.                                                        Transmission   (ln miles)                   23 Total   Revenues (000's)
Total..............
Operating   Costs (000's)
~
                                                                                                                                                .......  $ 26,072e
~
                                                                                                                                                          $ 24,60 I e One owner of PVNGS, El Paso Electric Company, has been under                              e unaudited bankruptcy protection since 1992, and filed its Fourth Amended Stand Alone Plan in September 1995. The Bankruptcy Court approved the plan, and El Paso emerged from Chapter 11 bankruptcy on February 12, 1996. All of El Paso's obligations regarding PVNGS during the bank-ruptcy period have been met.
Transmission (ln miles)
sAN JUAN oPERATIQNs San Juan Unit 3 continued to be a dependable resource for the five SCPPA members (Azusa, Banning, Colton, Glendale, and Imperial Irrigation District) who own a 41.8 per-cent share of the unit through SCPPA.
Total Revenues (000's).......
A  second Interim Invoicing Agreement further encouraged        high capacity IARD Ya PAtK factors and lower per unit fuel costs. Despite the major scheduled maintenance outage in the spring, SCPPA members received nearly 1.5 million MWH from os otsHDAta Incorporated In l 906, idalo purchased Its electric utility In San Juan in FY 1995-96.
Operating Costs (000's) eunaudited 0
241,582 24 I,582 23
$ 26,072e
$ 24,60 Ie crrv os cotTDH The Colton munidpal electric utility was established in I895, eight years after city incorporation. Since I986,the electric utilityhas changed from being solely dependent on Southern California Edison for its purchased power to being actively engaged in purchasing power from several different sources, achieving significant cost savings in the process.
in September 1995. The Bankruptcy Court approved the plan, and El Paso emerged from Chapter 11 bankruptcy on February 12, 1996. Allof El Paso's obligations regarding PVNGS during the bank-ruptcy period have been met.
sAN JUAN oPERATIQNs San Juan Unit3 continued to be a dependable resource for the five SCPPA members (Azusa, Banning, Colton, Glendale, and Imperial Irrigation District) who own a 41.8 per-cent share of the unit through SCPPA.
IARD Ya PAtK omen Served:.........
irGencratcd and Purchased legawatt.Hours)
If.generated rchased.............
smhslon (in miles)
IRcvenues (000's).......
rating Costs (000's) 82,57 I Id3,499 939,096 I,I02,595 d9 98,020 85,026 os otsHDAta Incorporated In l 906, idalo purchased Its electric utility In
', obtaining power from outside sup-
', obtaining power from outside sup-
: s. It received Its first power frotn ver Dam ln I 937 and inaugurated thc                 Installation of a new limestone scrubber system for the removal of sulfur unit of its own steam generating t In l94I. Now called the Grayson cr Plant, this facility today has eight       ~
: s. It received Its first power frotn ver Dam ln I 937 and inaugurated thc unit of its own steam generating t In l94I. Now called the Grayson cr Plant, this facility today has eight iratlng units. Glendale continues to hase 85 percent of Its power from ilde sources.
dioxide was approved late in the fiscal year. Besides improving emissions control, iratlng units. Glendale continues to hase 85 percent of Its power from ilde sources.                                   the three-year project will save SCPPA $ 3 million per year in operating and main-omen    Served:.........            82,57 I ir Gencratcd  and Purchased                    tenance costs.
A second Interim Invoicing Agreement further encouraged high capacity factors and lower per unit fuel costs. Despite the major scheduled maintenance outage in the spring, SCPPA members received nearly 1.5 million MWH from San Juan in FY 1995-96.
legawatt.Hours)
Installation of a new limestone scrubber system for the removal of sulfur
If.generated                      I d3,499 rchased    .............        939,096 I, I 02,595 Both the operating agent (Public Service Company of New Mexico) and the smhslon (in miles)                      d9 IR  cvenues (000's)  .......  $ 98,020 rating Costs (000's)          $ 85,026
~ dioxide was approved late in the fiscal year. Besides improving emissions control, the three-year project willsave SCPPA $3 millionper year in operating and main-tenance costs.
Both the operating agent (Public Service Company of New Mexico) and the


coal supplier are actively exploring other ways to reduce costs and make San Juan Generating Station a competitive resource   for its owners MEAD-PHQENIx/MEAD-ADELANToTRANsMIssloN PRDJEcTs                   After more than a decade of plan-ning and two and a half years of construction the Mead-Phoenix and Mead-Adelanto Transmission Lines went into commercial operation in April 1996. These two 500-kV AC transmission lines will cany power between the Phoenix       area, the Las Vegas area, and Southern California. Nine San Juan Gonaratlng Station SCPPA members own roughly one-fifth of Mead-Phoenix and one-third of Mead-Adelanto through SCPPA.
coal supplier are actively exploring other ways to reduce costs and make San Juan Generating Station a competitive resource for its owners MEAD-PHQENIx/MEAD-ADELANToTRANsMIssloN PRDJEcTs After more than a decade of plan-ning and two and a half years of construction the Mead-Phoenix and Mead-Adelanto Transmission Lines went into commercial operation in April 1996. These two 500-kV AC transmission lines will cany power between the Phoenix area, the Las Vegas area, and Southern California. Nine San Juan Gonaratlng Station SCPPA members own roughly one-fifth ofMead-Phoenix and one-third ofMead-Adelanto through SCPPA.
HoovER UPRATING PRoJEcT           The Hoover Uprating Project, which increased the rated capacity at Hoover Power Plant by 35 percent, was declared complete this year. Nine SCPPA members (Anaheim, Azusa, Banning, Burbank, Colton, Glendale, Pasadena,               Riverside, and Vernon) participated in the uprating and have obtained entitlements totaling 127 MW of capacity and approximately 143,000 MWH per year in allocated energy. The cities of Anaheim, Riverside, Burbank, Azusa, Banning, and Colton financed their participation through SCPPA.
HoovER UPRATING PRoJEcT The Hoover Uprating Project, which increased the rated capacity at Hoover Power Plant by 35 percent, was declared complete this year. Nine SCPPA members (Anaheim, Azusa, Banning, Burbank, Colton, Glendale,
: Pasadena, Riverside, and Vernon) participated in the uprating and have obtained entitlements totaling 127 MW of capacity and approximately 143,000 MWHper year in allocated energy. The cities ofAnaheim, Riverside, Burbank, Azusa, Banning, and Colton financed their participation through SCPPA.
Two issues which may affect operations at Hoover are the proposed sale of the Federal Power
Two issues which may affect operations at Hoover are the proposed sale of the Federal Power


KENNETH S MOILER Marketing Administrations (PMAs) and possible required mitigation of effects on endangered species in the lower Colorado River area. These issues are discussed IMPERIAL IRRIGATION DISTRICT under Legislative Advocacy.                                                                     IID entered the power Industry In l936 and today serves a peak load of 640 NW with 790 NW of generating resources.
Marketing Administrations (PMAs) and possible required mitigation of effects on endangered species in the lower Colorado River area. These issues are discussed under Legislative Advocacy.
Among IID~ned resources are 24 NW souTHERN TRANshIissloN SYSTEM As usual, the Southern Transmission System                        of low head hydro units along the All American Canal, 307 NW of gas-fired steam and combined cyde units, and l62 (STS) continued to operate at        or above design parameters, transmitting 11.3 mil-        NW of peaking gas turbines. In addition to IID's share of SCPPA resources com-lion MWH of power over its 488 miles, compared with 12 million MWH in fiscal                    prislng l04 NW at San Juan and l4 NW at Palo Verde, IID has 179 NW of other resources under long-tenn purchase con-year 1994-95. The line operated at 70.5 percent of capability, with 99.53 percent              tracts.
souTHERN TRANshIissloN SYSTEM As usual, the Southern Transmission System (STS) continued to operate at or above design parameters, transmitting 11.3 mil-lion MWHof power over its 488 miles, compared with 12 millionMWHin fiscal year 1994-95. The line operated at 70.5 percent of capability, with 99.53 percent availability. STS, a a 500-kV DC transmission line and associated converter stations, moves power between the Intermountain Converter Station in Utah to the Adelanto Converter Station in Southern California.
Customers Serve>h........               86,870 Power Generated and Purchased availability. STS, a a 500-kV DC transmission line and associated                converter (In N egawatt-Hours)
KENNETH S MOILER IMPERIALIRRIGATION DISTRICT IID entered the power Industry In l936 and today serves a peak load of 640 NW with 790 NW of generating resources.
Self-Generated Purchased
Among IID~ned resources are 24 NW of low head hydro units along the All American Canal, 307 NW of gas-fired steam and combined cyde units, and l62 NW of peaking gas turbines. In addition to IID's share of SCPPA resources com-prislng l04 NW at San Juan and l4 NW at Palo Verde, IID has 179 NW of other resources under long-tenn purchase con-tracts.
                                                                                                                                    ...........           774,587 I,893,599 stations, moves power between the Intermountain Converter Station in Utah to                      Total   ...............
86,870 Customers Serve>h........
Transmission Facilities (in Miles) 2,668,I86 l,637 Total Revenues (000's)     .....     I 97,9 I 7 the Adelanto Converter Station in Southern California.                                          Operating Costs (000's)     .... $$  I 77,624 LEGISLATIVEADVOCACY In the past year, SCPPA played its most crucial role to date in representing public power issues in Washington, D.C. By year end it had also made plans to maintain a continuous presence in the California legislature. The following examples underscore the value of SCPPA's advocacy in Congress.
Power Generated and Purchased (In Negawatt-Hours)
ELEcTRlc UTILITY INDUsTRY REsTRUcTURING                     Discussions about electric utility restructuring 4 A> COTTON and ways to increase competition in the industry were prominent on the congres-li'NCEIXS sional agenda in 1996. SCPPA was actively involved in this federal restructuring DEPARTMENT OF WATER AND In 19I6, the City of Los Angeles         debate. During visits with Members of Congress and staff in Washington, D.C., and I distributing electric power pur-id from the Pasadena Municipal
Self-Generated.........
;r Plant, and the following year               an April congressional staff tour of several SCPPA facilities, SCPPA representatives
774,587 Purchased...........
;Orated its first generating capacity at Francisqulto Power Plant No. I.
I,893,599 Total...............
discussed the effects of the California restructuring on municipal utilities, and 22 the city purchased thc remaining butlon system of Southern California
2,668,I86 Transmission Facilities (in Miles) l,637 Total Revenues (000's)..... $
>n Company within the city limits. It         SCPPA's view that federal legislation would be premature at this'time. In addition, Ir thc largest Inunlcipally owned elec-itilityIn the nation. During l 995-96 It rwcnt a major business restructuring           Executive Director Dan Waters testified for SCPPA and the American Public Power Iss to prepare for upcoming dcrcgu-I Association on March 29 at a restructuring hearing held by the Senate Energy and
I97,9 I7 Operating Costs (000's).... $
>mers   Servcdi........         I,350,807 rG eneratcd  and Purchased egawatt.Hours)                                 Natural Resources Committee.
I77,624 LEGISLATIVEADVOCACY In the past year, SCPPA played its most crucial role to date in representing public power issues in Washington, D.C. By year end it had also made plans to maintain a continuous presence in the California legislature. The followingexamples underscore the value ofSCPPA's advocacy in Congress.
I'-generated   .........
ELEcTRlc UTILITY INDUsTRY REsTRUcTURING Discussions about electric utility restructuring 4 A> COTTON li'NCEIXS DEPARTMENT OF WATER AND In 19I6, the City of Los Angeles I distributing electric power pur-id from the Pasadena Municipal
chased............
;r Plant, and the following year
2I,848,8I6 7,079,3 I 3 al   ...............
;Orated its firstgenerating capacity at Francisqulto Power Plant No. I.
,mhslon (ln miles) .....
22 the city purchased thc remaining butlon system ofSouthern California
28>928,I29 3,743 Revenues (000's)   ......   $ l,946,850 sting Costs(000's) .....     $ I,625,753
>n Company within the city limits. It Irthc largest Inunlcipally owned elec-itilityIn the nation. During l995-96 It rwcnt a major business restructuring Iss to prepare for upcoming dcrcgu-I
>mers Servcdi........
I,350,807 rGeneratcd and Purchased egawatt.Hours)
I'-generated.........
2I,848,8I6 chased............
7,079,3 I3 al...............
28>928,I29
,mhslon (ln miles).....
3,743 Revenues (000's)......
$ l,946,850 sting Costs(000's).....
$ I,625,753 and ways to increase competition in the industry were prominent on the congres-sional agenda in 1996. SCPPA was actively involved in this federal restructuring debate. Duringvisits with Members of Congress and staff inWashington, D.C., and an Aprilcongressional staff tour of several SCPPA facilities, SCPPA representatives discussed the effects of the California restructuring on municipal utilities, and SCPPA's view that federal legislation would be premature at this'time. In addition, Executive Director Dan Waters testified for SCPPA and the American Public Power Association on March 29 at a restructuring hearing held by the Senate Energy and Natural Resources Committee.


Rusus HICHTOWER clTY DF FAsADEHA Established In 1906,                 Utilityrestructuring and consumer choice issues are likely to be at the top of tho city built its first electric generating steam plant In I 907 and took over opera-tion of its municipal street lighting from       the energy agenda in the 105th Congress. SCPPA willcontinue to play a role in the Edison Electric. In 1909, Pasadena began the extension of its operations to com-mercial and residential customers that development of legislation as the restructuring debate moves forward next year.
Rusus HICHTOWER Customers Scrvcd:.........
resulted In the replacement of all Edison electric service In tho city by l920. In I 995.96, Pasadena   purchased approxi-mately 85 percent of its power needs.             THE NUcLEAR wAsTE PQLIGY AcT       With a 5.91 percent interest in the PaloVerde Customers    Scrvcd:.........            58,732 Power Generated and Purchased                    Nuclear Generating Facility, SCPPA has a keen interest in pending legislation to (ln Megawatt. Hours)
Power Generated and Purchased (ln Megawatt. Hours)
Sell-generated                        I 85,289 Purchased                          984,0$ 7  reauthorize the Nuclear Waste Policy Act of 1982, with amendments. Passage Total                            I ~ I 69,346 Transmission Facilidcs (in Miles) .            $7 Total Revenues (000's)
Sell-generated Purchased Total Transmission Facilidcs (in Miles).
Operating Costs (000's)
Total Revenues (000's).......
                        .......      $ I I 0,975  of these proposed amendments would provide solutions for waste generated at
Operating Costs (000's) 58,732 I85,289 984,0$ 7 I ~ I69,346
                                    $ 9$ ,654 the station at an interim nuclear waste disposal facility by 1998 and later at a permanent disposal site atYucca Mountain, Nevada. The Senate bill was eventually approved, but a veto threat from President Clinton and strong opposition from the Nevada delegation stopped efforts to pass the legislation this year.
$7
$ I I0,975
$ 9$,654 clTY DF FAsADEHA Established In 1906, tho city built its first electric generating steam plant In I907 and took over opera-tion of its municipal street lighting from Edison Electric. In 1909, Pasadena began the extension of its operations to com-mercial and residential customers that resulted In the replacement of all Edison electric service In tho city by l920. In I995.96, Pasadena purchased approxi-mately 85 percent of its power needs.
Utilityrestructuring and consumer choice issues are likelyto be at the top of the energy agenda in the 105th Congress. SCPPA willcontinue to play a role in the development of legislation as the restructuring debate moves forward next year.
THE NUcLEAR wAsTE PQLIGY AcT With a 5.91 percent interest in the PaloVerde Nuclear Generating Facility, SCPPA has a keen interest in pending legislation to reauthorize the Nuclear Waste Policy Act of 1982, with amendments.
Passage of these proposed amendments would provide solutions for waste generated at the station at an interim nuclear waste disposal facility by 1998 and later at a permanent disposal site atYucca Mountain, Nevada. The Senate billwas eventually approved, but a veto threat from President Clinton and strong opposition from the Nevada delegation stopped efforts to pass the legislation this year.
PowER 9dARKETINa AotdiNISTRATIoNS In its early years the Clinton administration attempted to auction federally owned power marketing administrations (PMAs) for a one-time reduction in the federal deficit. One PMA earmarked for sale was the Western Area Power Administration (WAPA),
PowER 9dARKETINa AotdiNISTRATIoNS In its early years the Clinton administration attempted to auction federally owned power marketing administrations (PMAs) for a one-time reduction in the federal deficit. One PMA earmarked for sale was the Western Area Power Administration (WAPA),
which provides power to most SCPPA members. This proposed sale would privatize the Hoover hydroelectric project, the Parker and Davis power plants, and their related transmission facilities. Sale of the PMAs would negatively affect public power operations unless the sales are BILL Do CARHAHAH l
which provides power to most SCPPA members. This proposed sale would privatize the Hoover hydroelectric project, the Parker and Davis power plants, and their related transmission facilities. Sale of the PMAs would negatively affect public power operations unless the sales are made to existing contractors. Although no serious PMA auction effort surfaced in 1996, the federal power program was carefully scrutinized, and many legislators remain staunch advocates of privatization.
made to existing contractors. Although no serious PMA auction effort surfaced in                             . ~
ENI3ANaEREI3 SPEciES ACT REAUTHoRIXATIoN Republican leaders named reauthorization of the Endangered Species Act as a top legislative priority, but their legislation immediately met opposition from environmental groups, Democrats, and many Republicans.
1996, the federal power program was carefully scrutinized, and many legislators clTY oF RlvfnsIDE Rlversldo Pl Utilities is posltlonlng Itself to offer t remain staunch advocates of privatization.                                                   petltive rates ln the new dercgul environment. Power and transmh costs constitute the bulk of cha passed on to our customers thrI ENI3ANaEREI3 SPEciES ACT REAUTHoRIXATIoN                   Republican leaders named         rates. Cost reduction and rcstructII efforts at SCPPA have had slgnlfi impact on Riverside Public Utlli reauthorization of the Endangered Species Act as a top legislative priority, but their       efforts in meeting our lower ope .
Fearing anti-environmental sentiment for the GOP, its Customers Served:
cost targets. Additional efforts, espc at Palo Verde Iqucicar Gener.
legislation immediately met opposition from environmental groups, Democrats,                 Station, will be required for Riversid compete ln future years.
and many Republicans. Fearing anti-environmental sentiment for the GOP, its                   Customers Served:
Power Generated and Purchased (In Megawatt. Hours)
Power Generated and Purchased (In Megawatt. Hours)
Self~ncratcd                         29 Purchased.............
Self~ncratcd Purchased.............
Total Transmhsion (In miles)
Total Transmhsion (In miles)
Total Revenues (000's)
Total Revenues (000's).......
Operating Costs (000's)
Operating Costs (000's) 29
                                                                                                                                              .......     $ I7 5 I6
$ I7 5 I6 BILL Do CARHAHAH l
~
clTY oF RlvfnsIDE Rlversldo Pl Utilities is posltlonlng Itself to offer t petltive rates ln the new dercgul environment.
Power and transmh costs constitute the bulk of cha passed on to our customers thrI rates. Cost reduction and rcstructII efforts at SCPPA have had slgnlfi impact on Riverside Public Utlli efforts in meeting our lower ope cost targets. Additional efforts, espc at Palo Verde Iqucicar Gener.
Station, will be required for Riversid compete ln future years.


leadership kept the legislation from being brought to the House floor for a vote this year. SCPPA continues to support ongoing voluntary efforts by California, Arizona, Nevada, and the Department of the Interior to protect endangered species in the Lower Colorado River region. These agencies are proceeding on the assumption that there willbe no significant changes to the Endangered Species Act in the future.
leadership kept the legislation from being brought to the House floor for a vote this year. SCPPA continues to support ongoing voluntary efforts by California, Arizona, Nevada, and the Department of the Interior to protect endangered species in the Lower Colorado River region. These agencies are proceeding on the assumption that there willbe no significant changes to the Endangered Species Act in the future.
TAx-ExEIuiPT FUNDING Concentrated efforts by SCPPA members and the public power community
TAx-ExEIuiPT FUNDING Concentrated efforts by SCPPA members and the public power community
                                                                              ~ '
~'
I; er Dam KENNETH Je DE DARIO to educate Members of Congress and staff of the value of tax-exempt financing provided a needed advantage in 1996. Investor-owned utilities gOUs) have oF YERNQN      Vernon's Light and opposed tax-exemption for public power entities, claiming that this status would     Power Department began serving indus-trial'customers in !933, with completion of its diesel generating plant. In addition give public power an unfair advantage under deregulation. Despite IOU attempts       to its own power from diesel units plus recently Installed gas turbines, Vernon to restrict tax-exempt financing in 1996 budget reconciliation legislation, no such   now receives power from Palo Verde, Hoover, and various utilities, including APS, CDWR, SRP, BPA and Edison.
I; er Dam to educate Members of Congress and staff of the value of tax-exempt financing provided a needed advantage in 1996. Investor-owned utilities gOUs) have opposed tax-exemption for public power entities, claiming that this status would give public power an unfair advantage under deregulation. Despite IOU attempts to restrict tax-exempt financing in 1996 budget reconciliation legislation, no such proposals were approved.
proposals were approved.                                                             Customers   Served:.........         2,04062t'lTY Power Generated and Purchased (in Megawatt-Hours)
RENEwABLE ENERGY PRDDUcTIDN INcENTIYE The Department of Energy's Renewable Energy Production Incentive (REPg provides incentive payments to KENNETH Je DE DARIO Customers Served:.........
Selpgenerated                       676 RENEwABLE ENERGY PRDDUcTIDN INcENTIYE The Department                    of Energy's    Purchased   ........,...,     l,077,823 Total                         l,078,499 Transmission (in miles)                 2.4 Renewable Energy Production Incentive (REPg provides incentive payments to            Total Revenues (000's)             $ 50, I 99e Operadng Costs (000's)             $ 37, I
Power Generated and Purchased (in Megawatt-Hours)
                                                                                              ~ Unaudited
Selpgenerated Purchased........,...,
Total Transmission (in miles)
Total Revenues (000's)
Operadng Costs (000's)
~Unaudited 2,040 676 l,077,823 l,078,499 2.4
$ 50, I99e
$ 37, I 62t'lTY oF YERNQN Vernon's Light and Power Department began serving indus-trial'customers in !933, with completion of its diesel generating plant. In addition to its own power from diesel units plus recently Installed gas turbines, Vernon now receives power from Palo Verde, Hoover, and various utilities, including APS, CDWR, SRP, BPA and Edison.


energy providers who generate energy from such sources as wind, geothermal sources, and landfill gas. SCPPA and other REPI supporters             obtained last-minute funding for the program during the fiscal year 1996 appropriations process. SCPPA member City of Glendale received the largest single payment of $ 946,921 for more than 60 million kilowatt-hours of power generated during 1995 at its Grayson landfill gas-fired facility. Intense efforts by SCPPA and other REPI supporters established fiscal year 1997 incentives as a major bipartisan platform during the appropriations debate.
energy providers who generate energy from such sources as wind, geothermal sources, and landfill gas. SCPPA and other REPI supporters obtained last-minute funding for the program during the fiscal year 1996 appropriations process. SCPPA member City of Glendale received the largest single payment of$946,921 for more than 60 millionkilowatt-hours ofpower generated during 1995 at its Grayson landfill gas-fired facility. Intense efforts by SCPPA and other REPI supporters established fiscal year 1997 incentives as a major bipartisan platform during the appropriations debate.
N A)e;                                                                                                                           'js g>C"
A)e; g>C" N
                                                                                                                        !            A(lj 4 Br'delanto Converter Station is the western terminus of tho Southern Tranmission System.
'js A(lj 4
PERCENTAGE OF SCPPA MEMBER PARTICIPATION IN SCPPA'S INTEREST PALO VERDE                       HOOVER VPRATIHO         HEAD ADELAHIO               HNA~                   SOUTHERH                        NAH JVAH PROJECT                          PROJECT                  PROJECT                    PRO/ECI               TRAHIHUNIOH                     PROJECT NVNTEH PROJECT (OX                                   (0%
Br'delanto Converter Station is the western terminus oftho Southern Tranmission System.
u(   NP(LNN   LllQ LNQ(5 ND(ONL NINON(
PERCENTAGE OF SCPPA MEMBER PARTICIPATION IN SCPPA'S INTEREST PALO VERDE PROJECT HOOVER VPRATIHO PROJECT HEAD ADELAHIO PROJECT HNA~
OX(NN(   ((LNR I
PRO/ECI SOUTHERH TRAHIHUNIOH NVNTEH PROJECT NAHJVAH PROJECT (OX (0%
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REPORT OF INDEPENDENT ACCOUNTANTS September 10, 1996 To the Board of Directors of the Southern California Public Power Authority In our opinion, the accompanying combined balance sheet and the related combined statements of operations and of cash flows present fairly, in all material respects, the financial position of the Southern California Public Power Authority (Authority) at June 30, 1996 and 1995, and the results of its opemtions and its cash flows for the years then ended in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Authority's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accep'ted auditing standards which require that we plan and perform the audit to obtain reasonable assumnce about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reason-able basis for the opinion expressed above.
REPORT OF INDEPENDENT ACCOUNTANTS September 10, 1996 To the Board ofDirectors of the Southern California Public Power Authority In our opinion, the accompanying combined balance sheet and the related combined statements of operations and of cash flows present fairly, in all material respects, the financial position of the Southern California Public Power Authority (Authority) at June 30, 1996 and 1995, and the results of its opemtions and its cash flows for the years then ended in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Authority's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accep'ted auditing standards which require that we plan and perform the audit to obtain reasonable assumnce about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reason-able basis for the opinion expressed above.
In our opinion, the accompanying separate balance sheets and the related sepamte statements of cash flows of the Authority's Palo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project, Multiple Project Fund and San Juan Project and the separate statements of operations of the Authority's Mo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project, and San Juan Project present fairly, in all material respects, the financial position of each of the Projects at June 30, 1996, and their cash flows, and the results of opemtions of the Authority's PaloVerde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project and San Juan Project for the year then ended in conformity with generaHy accepted accounting principles. These financial statements are the responsibility of the Authority's management; our responsibility is to express an opinion on these financial state-ments based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above.
In our opinion, the accompanying separate balance sheets and the related sepamte statements of cash flows of the Authority's Palo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project, Multiple Project Fund and San Juan Project and the separate statements of operations of the Authority's MoVerde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project, and San Juan Project present fairly, in all material respects, the financial position of each of the Projects at June 30, 1996, and their cash flows, and the results ofopemtions ofthe Authority's PaloVerde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project and San Juan Project for the year then ended in conformity with generaHy accepted accounting principles. These financial statements are the responsibility of the Authority's management; our responsibility is to express an opinion on these financial state-ments based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed above.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.
The supplemental financial information, as listed on the accompanying index, is presented for purposes of additional analysis and is not a required part of the basic financial statements. This information is the responsibility of the Authority's management. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
The supplemental financial information, as listed on the accompanying index, is presented for purposes of additional analysis and is not a required part ofthe basic financial statements. This information is the responsibility ofthe Authority's management. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statements taken as a whole.
Price Waterhouse LLP Los Angeles, California
Price Waterhouse LLP Los Angeles, California


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY COMBINED BALANCE SHEET tin thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY COMBINED BALANCESHEET tin thousands)
June 30, 1996 Mo             Itansn2issu7n   Hoooer         Mead-             Mead-           Mutt2)7tc       San                           June 30, Verde         System         I!puting       Phoenix           BMttanto       Project         juan                           1995 project       ptoj62t       pn7jeet         project           project         F~             Projnt         Thtal           Xta!
ASSETS June 30, 1996 Mo Itansn2issu7n Hoooer Mead-Mead-Mutt2)7tc San June 30, Verde System I!puting Phoenix BMttanto Project juan 1995 project ptoj62t pn7jeet project project F~
ASSETS Utilityplant:
Projnt Thtal Xta!
Production .                                                    S   613,608                                                     S   171,068                     $    183@09   S   967985     $    795080 Transmission                                                            14,146  $    674,606                    $      48,307                164                                      737,223         689,447 General                                                          ~569                  18 893                            1  971                                            8 613 ~3046                   29155 630+23         693,499                           S0,278         171,232                         191,922     1,737,254       1513,682 Less  - Accumulated depreciation          .                          250 021        194 127                                846            1 255                        36622   ~48         871       418688 380+02        499,372                            49,432          169,977                          155,300    1,254$ 83        1,094,994 Construction work in progress                                           9+03                                            3,116                                            3,501          16,120        206/73 Nudear fuel, at amortized cost                                         13 225                                                                                                            13225    ~1716 Net utilityplant                                                                                             ~5'48                  169977                          158 801    1,283 728    ~114.283 Spedal funds:
Utilityplant:
Available for sale at fair value (Note 2):
Production Transmission General S
Decommissioning       fund........                                 33,474                                                                                                            33,474          24~
613,608 14,146 674,606
Investmcnts                                                         11S,746        102,842  $        9,628          21/91              6~62 $        250,888          34,170        597,427        682,442 Escrow account -     Came         series                                           343,898                                                                                            343,898        343,921 Advance to Intennountain Power Agency               .                                   19~                                                                                              19/50          19~0 Advances for capacity and energy, net                                                                     10,119                                                                            10,119          11,903 Interest receivable                                                                                                                                                                                         16~1 Cash and cash cquivalcnts 1,512 67879 2,169 90324             1997 6
~569 18 893 S
                                                                                                                  ~18 ~4N      841           2,285           9,220 7546 67        16,100 173 798         120 610 218 611         558 718         21 750           23 980     ~69         1       260108           41 783     1 '194 366     1 219470 Accounts receivable                                                          738         2,687               19           '1,750           4,741           (6,402)           945         4,478           S,272 Materials and supplies                                                      9,240                                                                                            3569         12,809         13,297 Costs recoverable from future billings to participants..................                                        204,945         203,787           7~               Ir394             4+83                           31,780       453,827         411,031 Unrealized loss on investments in funds available for sale                                                                                            3                 9               28                               4         3,365           2+35 Prepaid construction costs                                                                                                                                                                                    5~
171,068 48,307 164 1 971 183@09 8 613 S
Prepaid  cxpcnses................                                                                                              26               66                                             92 Unamortized debt expenses, less accumulated amortization of $ 132,265 and $ 127,197 in1996and1995        .                                            201 693         164 247 ~37                       9 888           28 225                           3090        413348    ~429        08 S 1,011,713   $ 1,431,741   S       32.617   $    89,59S       $    276,669   S     253,706   $    239,972   $ 3,366,013     $ 3,400,732 LIABILITIES Long-tenn debt                                                     $    981,155   $ 1,034,757 S         30,981   S     86,417 $        268,05     S     242,786   $    222,444   S 2,866~5 $ 2,894,471 Subordinate Refunding Crossover Series                                                                                                                                                   347/88          347,782 Arbitmgc rebate payable                                                                                                                                                                                         77 Defcrrcd aedits                                                                                                                                                                               2,664          1,141 Current liabilities:
967985 795080 737,223 689,447
Long-tenn debt due within one year Acaucd interest Accounts payable and accrued expenses 25,690 24~
~3046 29155 Less - Accumulated depreciation 630+23 693,499 250 021 194 127 S0,278 171,232 846 1 255 191,922 1,737,254 1513,682 36622 ~48 871 418688 Construction work in progress Nudear fuel, at amortized cost Net utilityplant Spedal funds:
10 333 10,845 38,436 315 1,085 489 62
Available for sale at fairvalue (Note 2):
                                                                                                                            ~ S90 7,884 780 8,256 6,035 S,994 5499 43,655 88,182 17579 38,790 95,288 73185 Total cunent liabilities                                        ~60           8 ~49         96         1636             3178               8664           8256   ~17         28     149416         157261 Commitments and        contingencies.....
Decommissioning fund........
                                                                  $ 1,041,713   $ 1,431,741   $      32,617 $        89595 $          276,669   $    253,706   $    239,972   $ 3,366,013 $ 3,400,732 7he turornpanying notes an an integ7u! Part of thesefinaneiat statrrnenh.
Investmcnts Escrow account - Came series Advance to Intennountain Power Agency.
Advances forcapacity and energy, net Interest receivable Cash and cash cquivalcnts 33,474 11S,746 102,842 343,898 19~
1,512 67879 2,169 90324 380+02 499,372 9+03 13 225 49,432 169,977 3,116
~5'48 169977 155,300 1,254$ 83 1,094,994 3,501 16,120 206/73 13225 ~1716 158 801 1,283 728 ~114.283 9,628 10,119 6
841 2,285 1997 ~18 ~4N 9,220 67 7546 33,474 597,427 343,898 19/50 10,119 16,100 173 798 24~
682,442 343,921 19~0 11,903 16~1 120 610 21/91 6~62 250,888 34,170 Accounts receivable Materials and supplies Costs recoverable from future billings to participants..................
Unrealized loss on investments in funds available for sale Prepaid construction costs Prepaid cxpcnses................
Unamortized debt expenses, less accumulated amortization of$132,265 and $127,197 in1996and1995 218 611 558 718 21 750 23 980 ~69 1
260108 41 783 1 '194 366 1 219470 738 9,240 2,687 19
'1,750 4,741 (6,402) 945 4,478 S,272 3569 12,809 13,297 204,945 203,787 7~
Ir394 4+83 31,780 453,827 411,031 3
9 28 4
3,365 2+35 5~
26 66 92 3090 413348 ~429 08 201 693 164 247 ~37 9 888 28 225 S 1,011,713
$ 1,431,741 S
32.617 89,59S 276,669 S
253,706 239,972
$ 3,366,013
$ 3,400,732 Long-tenn debt LIABILITIES 981,155
$ 1,034,757 S
30,981 S
86,417 268,05 S
242,786 222,444 S 2,866~5
$ 2,894,471 Subordinate Refunding Crossover Series Arbitmgc rebate payable Defcrrcd aedits Current liabilities:
Long-tenn debt due withinone year..
Acaucd interest Accounts payable and accrued expenses Total cunent liabilities Commitments and contingencies.....
347/88 347,782 77 2,664 1,141 25,690 10,845 1,085 6,035 43,655 38,790 24~
38,436 489
~
7,884 8,256 S,994 88,182 95,288 10 333 315 62 S90 780 5499 17579 73185
~60 8 ~49 96 1636 3178 8664 8256 ~17 28 149416 157261
$ 1,041,713
$ 1,431,741 32,617 89595 276,669 253,706 239,972
$ 3,366,013
$ 3,400,732 7he turornpanying notes an an integ7u! Part ofthesefinaneiat statrrnenh.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY COMBINED STATEMENT OF OPERATIONS (in thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY COMBINED STATEMENT OF OPERATIONS (in thousands)
Year Pe7ded j(ale SO, 1996 Southe7n T)nrn7nission      Hoootr                                        San                           7172r Bukd Sltste7n            trprating                                      juan                         june 30, p7ofeet            profert                                        ptojeet       7t)tat         199S Operating revenues:
Southe7n T)nrn7nission Hoootr Sltste7n trprating p7ofeet profert Year Pe7ded j(ale SO, 1996 San 7172r Bukd juan june 30, ptojeet 7t)tat 199S Operating revenues:
Sales of electric enetm7 .                                                $ 135,464                         $    3+49                                     $ 50,117     $ 188,930     $ 183,603 Sales of transmission services .                                                      $ 85 297                             $        226     $    172                       85 695         91,250 Total operating revenues                                             155 464         85 297         ~39                       226           172       50'117       274 625       274.853 Opera tmg expenses:
Sales ofelectric enetm7 Sales of transmission services
Amortization of nudear fuel                                                   7,949                                                                                            7,949        8,150 Other operations     ..                                                     25,815         10,192                                  213          145            314        38,879        39,873 50,834 Maintenance .                                                                  6,317          5,236                                   13           27       35,760         47@53 Depreciation .                                                              18,425          20329                                    342        1.132          9,095        49/23         47,975 Decommissioning                                                              12,497                                                                              3 113        15 610    ~16 13 Total operating expenses                                               7I 024         35 757                                   568     ~101           48,282       159114     ~163     5 Operating income (loss)                                                     64,461         49+40               1,149               (342)       (1,132)         1,835     115+11         111~
$ 135,464 3+49 50,117
Investment income                                                             '10 886         28 993               874               410         2174     ~062         ~44       99       23 884 Income before debt expense                                                                                                                     42         3,897     159,910 Debt expense                                                               ~8777             99 166         ~262                   1 462         4,425   ~1614           2D2 706       174 140 Costs recoverable from future billings to participants                                                 ($   7.43D) (8 20.633)           ($     239)   (5     )S94)       54083)
$ 188,930
(5          ($     8.71)l (8 42.796)     ($ 38.748) 7he ~ng           notes are an integral part of these finantia stalnntnts.
$ 183,603 85 297 226 172 85 695 91,250 Total operating revenues 155 464 85 297
~39 226 172 50'117 274 625 274.853 Opera tmg expenses:
Amortization of nudear fuel Other operations..
Maintenance Depreciation Decommissioning 7,949 25,815 6,317 18,425 12,497 10,192 5,236 20329 213 13 342 145 27 1.132 314 35,760 9,095 3 113 7,949 38,879 47@53 49/23 15 610 8,150 39,873 50,834 47,975
~16 13 Total operating expenses 7I 024 35 757 568
~101 48,282 159114
~163 5
Operating income (loss) 64,461 49+40 1,149 (342)
(1,132) 1,835 115+11 111~
Investment income
'10 886 28 993 874 410 2174
~062
~44 99 23 884 Income before debt expense 42 3,897 159,910 Debt expense
~8777 99 166
~262 1 462 4,425
~1614 2D2 706 174 140 Costs recoverable from future billings to participants
($
7.43D)
(8 20.633)
($
239)
(5
)S94)
(554083)
($
8.71)l (8
42.796)
($
38.748) 7he~ng notes are an integral part ofthese finantia stalnntnts.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY COMBINED STATEMENT OF CASH FLOWS
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY COMBINED STATEMENT OF CASH FLOWS
(/n tticnnands) year Ended June 3tt, 1996 itib         1hmsmission Hoover           Mead-           /44/ead-         Ma/tip/e   San                     Jime 30, Verde       System     Upn ting         Pttoenir         Adetanto         Pnojnt     Juan                     1995 hoject       hoject     hiojcct           hojoct           hijiect         Fimd       hofect     7bta/       7tita!
(/n tticnnands) year Ended June 3tt, 1996 itib 1hmsmission Hoover Mead-
/44/ead-Ma/tip/e San Verde System Upn ting Pttoenir Adetanto Pnojnt Juan hoject hoject hiojcct hojoct hijiect Fimd hofect Jime 30, 1995 7bta/
7tita!
Cash flows from operating activities:
Cash flows from operating activities:
Costs recoverable from future billings to participants                                                 ($    7,430) ($ 20,633)  ($      239)      (S    1494)      ($      4~)                ($  8,717) (S 42,796)  ($ 38,748)
Costs recoverable from future billings to participants Adjustments to amve at net cash provided by (used for) operating activities-Depredation Decommissioning Amortization of nuclear fuel Amortization ofdebt costs Write-offofconstruction work in progress costs ~.........
Adjustments to amve at net cash provided by (used for) operating activities-Depredation                                                       18,425      20,329                            342            1,132                    9,095      49,323        47,975 Decommissioning                                                   12,497                                                                                  3,113      15,610        16+13 Amortization of nuclear fuel                                       7,949                                                                                              7,949        8,150 Amortization of debt costs                                       24,428      11,739          294                167              482                      626    37,736        29,050 Write-offof construction work in progress costs       ~.........
~
Changes in assets and liabilities:
Changes in assets and liabilities:
                                                          ~                            1+13                                                                                    1+13 Decommissioning       fund...........                             (8,971)                                                                                            (8,971)      (1,297)
Decommissioning fund...........
Interest receivable                                                 (289)      (362)          20              405              691                        2        467          437 Accounts reccivablc                                                   174        (218)          (19)              213              (72)                    946        1,024        1,402 Materials and supplies                                               378                                                                                    110          488        2069 Other assets                                                           55                                      1,977            3,467                        56      5,555          117 Accrued interest                                                   (6,150)      (943)                                                (I)                              (7,105)      10,036 Accounts payable and accrued expenses                         ~643        ~1943                                                  745              ~1482      ~604                3090 Net cash provided by operating activities.....                           34,629    ~9282                                          ~061                      ~6713      ~989              78 794 Cash flows from investing activities:
Interest receivable Accounts reccivablc Materials and supplies Other assets Accrued interest Accounts payable and accrued expenses Net cash provided by operating activities.....
Interest received on investments                                                                                                               $ 18@80                    18380        34,037 Arbitrage    payment...............
Cash flows from investing activities:
  ~
Interest received on investments Arbitragepayment...............
(3,757)
Payments for construction offacilities......
Payments for construction of facilities......                         (10,892)                                   (13,208)         (15,652)                   (1,938)   (41,690)   (104,088)
Purchases ofinvestments............
Purchases    of investments............                            (154,685)   ( 154,904)     (22,665)           (3,264)           (9,184)       (1,868)   (14+70)   (360,940)     (230,693) from sale/maturity of investments...                    18~          195+93        20,705            14,474          23,000                      8,867    444,948      299,265 Advances for capacity and energy, net                                                            1,784                                                                      1,784        1,415 Reimbursement from WAPA                                                                                                                                                                      111 Net cash provided by (used for) investing activities                                                    16 732     40.689   ~17               ~2998           ~1,836         ~16     12 ~441           62,482         3 710 Cash flows from capital and related financing activities:
~ from sale/maturity ofinvestments...
Payments of interest on long-term            debt....                                                                                          (16+12)                 (16412)       (37,092)
Advances for capacity and energy, net Reimbursement from WAPA Net cash provided by (used for) investing activities Cash flows from capital and related financing activities:
Proceeds from sale of bonds                                        229,483                                                                                            229,483 Payment for defeasance of revenue bonds...                        (233,632)                                                                                           (233,632)       (5,798)
Payments ofinterest on long-term debt....
Repayment of principal on long-term debt                          (23,855)     (14+25)        (610)                                                                  (38,790)      (36,900)
Proceeds from sale of bonds Payment for defeasance of revenue bonds...
Payment for bond issue        costs.........                    ~4832                                                                                              ~4,832      ~40 Nct cash used for capital and related financing activities                                        ~3836       ~14325             610                                           16 12 Nct increase (decrease) in cash and cash equivalents                                                      18/25       35,646        (748)                                                          (728)    53,188        (4,746)
Repayment ofprincipal on long-term debt Payment for bond issue costs.........
Cash and cash equivalents at beginning of year                ..      ~49       4     54,678  ~745              ~1280                  4,279                ~8274      ~120 610              56
Nct cash used forcapital and related financing activities Nct increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning ofyear..
                                                                                                                                                                                                    '1 Cash and cash equivalents at cnd of year.....                        $ 67,879     S 90324     $    1,997       $    1&8       $    4304                 $   7&6     $ 173,798   $ 120.610 Supplemental disclosure of cash flow information:
Cash and cash equivalents at cnd ofyear.....
Cash paid during the year for interest (net of amount    capitalized)..........                        S 64.499     $ 88370     S   1,978       $        -      S           -  $ 16512     S 11,988   $ 183,347   $ 188,700 The accointicuping notes are an intern! part of ttiese financial statements.
Supplemental disclosure ofcash flowinformation:
Cash paid during the year forinterest (net of amount capitalized)..........
($
7,430)
($ 20,633)
($
239)
(S 1494)
($ 4~)
($
8,717)
(S 42,796)
($
38,748) 18,425 12,497 7,949 24,428 20,329 11,739 294 1+13 342 1,132 167 482 9,095 3,113 626 49,323 15,610 7,949 37,736 1+13 47,975 16+13 8,150 29,050 (8,971)
(289) 174 378 55 (6,150)
~643 34,629 (362)
(218)
(943)
~1943
~9282 20 (19) 405 213 1,977 691 (72) 3,467 (I) 745
~061 2
946 110 56
~1482
~6713 (8,971) 467 1,024 488 5,555 (7,105)
~604
~989 (1,297) 437 1,402 2069 117 10,036 3090 78 794 (10,892)
(154,685)
( 154,904) 18~
195+93 (22,665) 20,705 1,784 (13,208)
(3,264) 14,474 (15,652)
(9,184) 23,000
$ 18@80 (1,868)
(1,938)
(14+70) 8,867 18380 (41,690)
(360,940) 444,948 1,784 34,037 (3,757)
(104,088)
(230,693) 299,265 1,415 111 16 732 40.689
~17
~2998
~1,836
~16 12
~441 62,482 3 710 229,483 (233,632)
(23,855)
~4832 (14+25)
(610)
(16+12)
(16412) 229,483 (233,632)
(38,790)
~4,832 (37,092)
(5,798)
(36,900)
~40
~3836
~14325 610 16 12 18/25
~49 4
$ 67,879 35,646 54,678 S 90324 (748)
~745 1,997
~1280 1&8 4,279 4304 (728)
~8274
$ 7&6 53,188
~120 610
$173,798 (4,746) 56
$ 120.610 S 64.499
$ 88370 S
1,978 S
$ 16512 S 11,988
$183,347
$ 188,700 The accointicuping notes are an intern! part ofttiese financial statements.


SOUTHERN CALIFORNIA PUSLIC POWER AUTHORITY NOTES TO FINANCIALSTATEMENTS Note I Ot1fanlzatfon and
SOUTHERN CALIFORNIAPUSLIC POWER AUTHORITY NOTES TO FINANCIALSTATEMENTS Note I Ot1fanlzatfon and


==Purpose:==
==Purpose:==
Southern California Public Power Authority (Authority), a public                           Station in Utah to Southern California. The Authority entered entity organized under the laws of the State of California, was                           into an agreement also dated as of May 1, 1983 with six of its formed by a Joint Powers Agreement dated as of November 1, 1980                            participants pursuant to which each member assigned its entitle-pursuant to the Joint Exercise of Powers Act of the State of                              ment to capacity of FIS to the Authority in return for the California. The Authority's participant membership consists of ten                        Authority's agreement to make payments-in-aid of construction to Southern California cities and one public district of the State of                        IPA. STS commenced commercial operations in July 1986. The California. The Authority was formed for the purpose of planning,                          Department of Water and Power of the City of Los Angeles financing, developing, acquiring, constructing, operating and                              (LADWP), a member of the Authority, serves as project manager maintaining projects for the generation and transmission of elec-                          and operating agent of the Intermountain Power Project (IPP).
Southern California Public Power Authority (Authority), a public entity organized under the laws of the State of California, was formed by a Joint Powers Agreement dated as ofNovember 1, 1980 pursuant to the Joint Exercise of Powers Act of the State of California. The Authority's participant membership consists of ten Southern California cities and one public district of the State of California. The Authoritywas formed for the purpose of planning, financing, developing, acquiring, constructing, operating and maintaining projects for the generation and transmission of elec-tric energy for sale to its participants. The Joint Powers Agreement has a term of fiftyyears.
tric energy for sale to its participants. The Joint Powers Agreement has a term of fiftyyears.                                                                  Hoover Uprating Project The Authority and six participants The members have the following participation percentages                              entered into an agreement dated as of March 1, 1986, pursuant to in the Authority's interest in the projects at June 30, 1996 and 1995:                    which each participant assigned its entitlement to capacity and Southern associated firm energy to the Authority in return for the Authority's Palo        Tranunisslon em Hocwer U ting Plead-Phoenhc Mead.
The members have the following participation percentages in the Authority's interest in the projects at June 30, 1996 and 1995:
Adetauto San Juan agreement to make advance payments to the United States Bureau Participants            Verde      S of Reclamation (USBR) on behalf of such participants. The USBR I
I Participants Southern Palo Tranunisslon Hocwer Plead-Mead.
Gty of Los Ansclcs      67.0%      595 o%                        24.8%    35.7%
San Verde S
has declared that the Project was substantially complete as of Gty of Anaheim                      17.6              42.6%      24.2    135 135 September 30, 1995 with minor work scheduled to be completed Gty of Riverside          5.4        10.2              31.9        4.0 in the spring of 1997. The Authority has an 18.68/o interest in the Imperial Iimsation District              65                                                        51.0% contingent capacity of the Hoover Uprating Project (HU). All Gty of Vernon            4.9                                                              seventeen"uprated" generators of the HU have commenced com-GtyofAzusa                1.0                            4.2        1.0      2.2      14.7 mercial operations.
em U
Gty of Bannins            1.0                            2.1        1.0      13        98 Gty of Colton            1.0                            3.2        1.0      2.6      14.7 Mead-Phoenix Project The Authority entered into an agreement Gty of Burbank            4.4          45              16.0        15.4    115            dated as of December 17, 1991 to acquire an interest in the Mead-Gty of Glendale          4.4          23                          14.8    11.1      9.8 Phoenix Project (MP), a transmission line extending between, the Gty of Pasadena          4A          5.9                        13.8      8.6          Westwing substation in Arizona and the Marketplace substation 100.0%      100.0%          100.0%      100.0%  100.0%  100.0% in Nevada. The agreement provides the Authority with an 18.31'/o interest in the Westwing-Mead project component, a
ting Phoenhc Adetauto Juan Gty ofLos Ansclcs Gty ofAnaheim Gtyof Riverside Imperial Iimsation District Gty of Vernon
  'lhe mernhcrs do nct cunently pantdpate in the Multiple project BmL                        17.76'/o interest in the Mead Substation project component and a Mead phocntc partidpattonrcQccts thee ownership cocnponcnts (sce below).
, GtyofAzusa Gty ofBannins Gty ofColton Gty ofBurbank GtyofGlendale Gtyof Pasadena 67.0%
22.41'/o interest in the Mead-Marketplace project component. The Authority has entered into transmission service contracts for the Palo Verde Project The Authority, pursuant to an assignment entire capability of its interest with nine members of the Authority agreement dated as of August 14, 1981 with the Salt River Project                        on a "take or pay" basis. In addition, the Authority has admini-(Salt River), purchased a 5.91'/o interest in the Mo Verde Nuclear                        strative responsibility for accounting for the separate ownership Generating Station (PVNGS), a 3,810 megawatt nuclear-fueled                              interest in the project by Western Area Power Administration generating station near Phoenix, Arizona, and a 6.55'/o share of the                      (WAPA), who is providing separate funding ($ 72,874,000 and right to use certain portions of the Arizona Nuclear Power Project                        $ 58,676,000 at June 30, 1996 and 1995, respectively) for its interest.
595 o%
Valley Transmission System (collectively, the Palo Verde Project).                          Commercial operations of MP commenced in April 1996. Funding As of July1, 1981, ten participants had entered into power sales                      was provided by a transfer of funds from the Multiple Project Fund contracts with the Authority to purchase the Authority's share of                          (Note 4).
17.6 5.4 10.2 24.8%
PVNGS capacity and energy. Units 1, 2 and 3 of the Palo Verde Project began commercial operations in January 1986, Septembei                            Mead-Adelanto Project -The Authority entered into an agteement 1986, and Januaty 1988, respectively.                                                      dated as of December 17, 1991 to acquire a 67.92/o interest in the Mead-Adelanto Project (MA), a transmission line extending Soffthern TJIIJJsnnssioJJ Systnn Project The Authority, pursuant to                      between the Adelanto substation in Southern California and the an agreement dated as of May 1, 1983 with the Intermountain                                Marketplace substation in Nevada. The Authority has entered into Power Agency (IPA), has made payments-in-aid of construction to                            transmission service contracts for the entire capability of its inter-IPA to defray all the costs of acquisition and construction of the                        est with nine members of the Authority on a"take or pay" basis. In Southern Transmission System Project (STS), which provides for                            addition, the Authority has administrative responsibility for the transmission of energy from the Intermountain Generating
42.6%
24.2 31.9 4.0 65 4.9 1.0 4.2 1.0 1.0 2.1 1.0 1.0 3.2 1.0 4.4 45 16.0 15.4 4.4 23 14.8 4A 5.9 13.8 35.7%
135 135 51.0%
2.2 14.7 13 98 2.6 14.7 115 11.1 9.8 8.6 100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
'lhe mernhcrs do nct cunently pantdpate in the Multipleproject BmL Mead phocntc partidpattonrcQccts thee ownership cocnponcnts (sce below).
Soffthern TJIIJJsnnssioJJ Systnn Project The Authority, pursuant to an agreement dated as of May 1, 1983 with the Intermountain Power Agency (IPA), has made payments-in-aid ofconstruction to IPA to defray all the costs of acquisition and construction of the Southern Transmission System Project (STS), which provides for the transmission of energy from the Intermountain Generating Palo Verde Project The Authority, pursuant to an assignment agreement dated as ofAugust 14, 1981 with the Salt River Project (Salt River), purchased a 5.91'/o interest in the MoVerde Nuclear Generating Station (PVNGS), a 3,810 megawatt nuclear-fueled generating station near Phoenix, Arizona, and a 6.55'/o share of the right to use certain portions of the Arizona Nuclear Power Project ValleyTransmission System (collectively, the Palo Verde Project).
As ofJuly1, 1981, ten participants had entered into power sales contracts with the Authority to purchase the Authority's share of PVNGS capacity and energy. Units 1, 2 and 3 of the Palo Verde Project began commercial operations in January 1986, Septembei 1986, and Januaty 1988, respectively.
Station in Utah to Southern California. The Authority entered into an agreement also dated as of May 1, 1983 with six of its participants pursuant to which each member assigned its entitle-ment to capacity of FIS to the Authority in return for the Authority's agreement to make payments-in-aid ofconstruction to IPA. STS commenced commercial operations in July 1986. The Department of Water and Power of the City of Los Angeles (LADWP), a member of the Authority, serves as project manager and operating agent of the Intermountain Power Project (IPP).
Hoover Uprating Project The Authority and six participants entered into an agreement dated as of March 1, 1986, pursuant to which each participant assigned its entitlement to capacity and associated firmenergy to the Authorityin return for the Authority's agreement to make advance payments to the United States Bureau of Reclamation (USBR) on behalf of such participants. The USBR has declared that the Project was substantially complete as of September 30, 1995 with minor work scheduled to be completed in the spring of 1997. The Authorityhas an 18.68/o interest in the contingent capacity of the Hoover Uprating Project (HU). All seventeen"uprated" generators of the HU have commenced com-mercial operations.
Mead-Phoenix Project The Authority entered into an agreement dated as of December 17, 1991 to acquire an interest in the Mead-Phoenix Project (MP), a transmission line extending between, the Westwing substation in Arizona and the Marketplace substation in Nevada. The agreement provides the Authority with an 18.31'/o interest in the Westwing-Mead project component, a
17.76'/o interest in the Mead Substation project component and a 22.41'/o interest in the Mead-Marketplace project component. The Authority has entered into transmission service contracts for the entire capability of its interest with nine members of the Authority on a "take or pay" basis. In addition, the Authority has admini-strative responsibility for accounting for the separate ownership interest in the project by Western Area Power Administration (WAPA), who is providing separate funding ($72,874,000 and
$58,676,000 at June 30, 1996 and 1995, respectively) for its interest.
Commercial operations ofMP commenced inApril1996. Funding was provided by a transfer offunds from the MultipleProject Fund (Note 4).
Mead-Adelanto Project -The Authority entered into an agteement dated as of December 17, 1991 to acquire a 67.92/o interest in the Mead-Adelanto Project (MA), a transmission line extending between the Adelanto substation in Southern California and the Marketplace substation in Nevada. The Authorityhas entered into transmission service contracts for the entire capability of its inter-est with nine members ofthe Authorityon a"take or pay" basis. In addition, the Authority has administrative responsibility for


accounting for the sepamte ownership interest in the project by         plant construction work in progress until a facility commences WAPA, who is providing sepamte funding ($ 17,088,000 and                 commercial operation.
accounting for the sepamte ownership interest in the project by WAPA, who is providing sepamte funding ($17,088,000 and
$ 16,282,000 at June 30, 1996 and 1995, respectively) for its interest.     The Authority's share of construction and betterment costs Funding was provided by a transfer of funds from the Multiple           associated with PVNGS is included as utility plant. Depreciation Project Fund (Note 4). Commercial operations commenced in               expense is computed using the straight-line method based on the April 1996. LADWP serves as both construction manager and                estimated service life of thirty-five years. Nuclear fuel is amortized operations manager.                                                      and charged to expense on the basis of actual thermal energy pro-duced relative to total thermal energy expected to be produced MultipieProject Fund During fiscal year 1990, the Authority issued      over the life of the fuel. Under the provisions of the Nuclear Waste Multiple Project Revenue Bonds for net proceeds of approxi-              Policy Act of 1982, the Authority is charged one mill per kilowatt-mately $ 600 million to provide funds to finance costs of construc-      hour, by the federal governmen, on its share of electricity pro-tion and acquisition of ownership interests or capacity rights in one    duced by PVNGS, and such funds willeventually be utilized by the or more then unspecified projects for the generation or trans-          fedeml government to provide for PVNGS'nuclear waste disposal.
$16,282,000 at June 30, 1996 and 1995, respectively) for its interest.
mission of electric energy.                                              The Authority records this charge as a current year expense.
Funding was provided by a transfer of funds from the Multiple Project Fund (Note 4). Commercial operations commenced in April 1996. LADWP serves as both construction manager and operations manager.
In August 1992, the Authority's Board of Directors approved a          The Authority's share of construction and betterment costs resolution authorizing the use of certain proceeds of Multiple          associated with STS, MP, MA and SJGS are included as utility Project Revenue Bonds to finance the Authority's ownership inter-        plant. Depreciation expense is computed using the stmight-line ests in the Mead-Phoenix and Mead-Adelanto projects. Tmnsfers            method based on the estimated service lives, principally thirty-five made from the Multiple Project Fund are sufficient to provide          years for STS, MAand MP and twenty-one years for SJGS.
MultipieProject Fund During fiscal year 1990, the Authorityissued Multiple Project Revenue Bonds for net proceeds of approxi-mately $600 millionto provide funds to finance costs of construc-tion and acquisition ofownership interests or capacity rights in one or more then unspecified projects for the generation or trans-mission ofelectric energy.
for the Authority's share of the estimated costs of acquisition and        Interest costs incurred by the MP and MAprojects through the construction of these two projects, including reimbursement of          date commercial operations commenced (April 1996) are capital-planning, development and other related costs.                          ized in utilityplant. Total interest costs capitalized were $ 11,827,000 and $ 15,769,000 in fiscal 1996 and 1995, respectively, for the MA San Juan Project Effective July 1, 1993, the Authority purchased      project and $ 3,881,000 and $ 5,175,000 in fiscal 1996 and 1995, a 41.80/o interest in Unit 3, a 488 megawatt unit and related          respectively, for the MP project.
In August 1992, the Authority's Board of Directors approved a resolution authorizing the use of certain proceeds of Multiple Project Revenue Bonds to finance the Authority's ownership inter-ests in the Mead-Phoenix and Mead-Adelanto projects. Tmnsfers made from the Multiple Project Fund are sufficient to provide for the Authority's share of the estimated costs of acquisition and construction of these two projects, including reimbursement of planning, development and other related costs.
common facilities, of the San Juan Generating Station (SJGS) from Century Power Corpomtion. Unit 3 is one unit of a four-unit            Arlvnnces for Capacity and Enegp -Advance payments to USBR for coal-fired power genemting station in New Mexico. The Authority          the upmting of the 17 genemtors at the Hoover Power Plant are allocated the $ 193 million purchase price to the estimated fair        included in advances for capacity and energy. These advances are value of the utility plant ($ 190 million) and to materials and          being reduced by credits on billings to participants for energy and supplies ($3 million).The purchase has been financed through the        capacity.
San Juan Project Effective July 1, 1993, the Authority purchased a 41.80/o interest in Unit 3, a 488 megawatt unit and related common facilities, ofthe San Juan Generating Station (SJGS) from Century Power Corpomtion. Unit 3 is one unit of a four-unit coal-fired power genemting station in New Mexico.The Authority allocated the $193 million purchase price to the estimated fair value of the utility plant ($190 million) and to materials and supplies ($3 million).The purchase has been financed through the issuance of approximately $237 million (par value) of San Juan Project Revenue Bonds. The Authorityhas entered into power sales contracts for the entire capability of its interest with five members of the Authorityon a"take or pay" basis.
issuance of approximately $ 237 million (par value) of San Juan Project Revenue Bonds. The Authority has entered into power sales        Nuclear Decommissioning Decommissioning of PVNGS is contracts for the entire capability of its interest with five members    projected to commence subsequent to the year 2022. Based upon of the Authority on a"take or pay" basis.                                an updated study performed by an independent engineering firm, the Authority's share of the estimated decommissioning costs is
Nota 2 Summary of Significant Accounting Pollclcs:
                                                                        $ 85.5 million in 1995 dollars ($ 390 miHion in 2022 dollars assum-Nota 2 Summary of Significant Accounting Pollclcs:                      ing a 6'/0 estimated annual inflation mte). The Authority is provid-The financial statements of the Authority are presented in confor-      ing for its share of the estimated future decommissioning costs mity with generally accepted accounting principles, and substan-        over the remaining life of the nuclear power plant (25 to 27 years) tiaHy in conformity with accounting principles prescribed by the        through annual charges to expense which amounted to $ 12.5 mil-Federal Energy Regulatory Commission and the California Public          lion and $ 13.4 million in fiscal 1996 and 1995, respectively.
The financial statements of the Authorityare presented in confor-mity with generally accepted accounting principles, and substan-tiaHy in conformity with accounting principles prescribed by the Federal Energy Regulatory Commission and the California Public Utilities Commission. The Authorityis not subject to regulation by either of these regulatory bodies.
Utilities Commission. The Authority is not subject to regulation by      The decommissioning liabilityis included as a component of accu-either of these regulatory bodies.                                      mulated depreciation and was $ 88.1 million and $ 75.6 million at The financial statements represent the Authority's share in each    June 30, 1996 and 1995, respectively.
The financial statements represent the Authority's share in each jointly-owned project. The Authority's share of direct expenses of jointly-owned projects are included in the corresponding operat-ing expense of the statement of opemtions. Each owner of the jointly-owned projects is required to provide their own financing.
jointly-owned project. The Authority's share of direct expenses of          A Decommissioning Fund has been established and partiaHy jointly-owned projects are included in the corresponding operat-        funded at $ 33.9 million at June 30, 1996. The Decommissioning ing expense of the statement of opemtions. Each owner of the            Fund earned interest income of $ 700,000 during fiscal 1996.
UtilityPlant -The Authority's share of aH expenditures, including geneml administmtive and other overhead expenses, payments-in-aid of construction, interest net of related investment income, deferred cost amortization and the fair value of test power gener-ated and delivered to the participants are capitalized as utility plant construction work in progress until a facility commences commercial operation.
jointly-owned projects is required to provide their own financing.
The Authority's share of construction and betterment costs associated with PVNGS is included as utilityplant. Depreciation expense is computed using the straight-line method based on the estimated service life of thirty-fiveyears. Nuclear fuel is amortized and charged to expense on the basis ofactual thermal energy pro-duced relative to total thermal energy expected to be produced over the lifeofthe fuel. Under the provisions of the Nuclear Waste Policy Act of 1982, the Authority is charged one millper kilowatt-hour, by the federal governmen, on its share of electricity pro-duced by PVNGS, and such funds willeventually be utilized by the fedeml government to provide for PVNGS'nuclear waste disposal.
Dnnvlifion nnd Site Reclamation Demolition and site reclamation UtilityPlant The Authority's share of aH expenditures, including        of SJGS, which involves restoring the site to a "green" condition geneml administmtive and other overhead expenses, payments-              which existed prior to SJGS construction, is projected to commence in-aid of construction, interest net of related investment income,      subsequent to the year 2014. Based upon a study performed by an deferred cost amortization and the fair value of test power gener-      independent engineering firm, the Authority's share of the esti-ated and delivered to the participants are capitalized as utility        mated demolition and site reclamation costs is $ 18.7 million in
The Authorityrecords this charge as a current year expense.
The Authority's share of construction and betterment costs associated with STS, MP, MA and SJGS are included as utility plant. Depreciation expense is computed using the stmight-line method based on the estimated service lives, principally thirty-five years for STS, MAand MP and twenty-one years for SJGS.
Interest costs incurred by the MP and MAprojects through the date commercial operations commenced (April1996) are capital-ized in utilityplant. Total interest costs capitalized were $11,827,000 and $15,769,000 in fiscal 1996 and 1995, respectively, for the MA project and $3,881,000 and $5,175,000 in fiscal 1996 and 1995, respectively, for the MP project.
ArlvnncesforCapacity and Enegp -Advance payments to USBR for the upmting of the 17 genemtors at the Hoover Power Plant are included in advances for capacity and energy. These advances are being reduced by credits on billings to participants for energy and capacity.
Nuclear Decommissioning Decommissioning of PVNGS is projected to commence subsequent to the year 2022. Based upon an updated study performed by an independent engineering firm, the Authority's share of the estimated decommissioning costs is
$85.5 millionin 1995 dollars ($390 miHion in 2022 dollars assum-ing a 6'/0 estimated annual inflation mte). The Authorityis provid-ing for its share of the estimated future decommissioning costs over the remaining lifeof the nuclear power plant (25 to 27 years) through annual charges to expense which amounted to $12.5 mil-lion and
$13.4 million in fiscal 1996 and
: 1995, respectively.
The decommissioning liabilityis included as a component of accu-mulated depreciation and was $88.1 million and $75.6 million at June 30, 1996 and 1995, respectively.
A Decommissioning Fund has been established and partiaHy funded at $33.9 million at June 30, 1996. The Decommissioning Fund earned interest income of $700,000 during fiscal 1996.
Dnnvlifionnnd Site Reclamation Demolition and site reclamation of SJGS, which involves restoring the site to a "green" condition which existed prior to SJGS construction, is projected to commence subsequent to the year 2014. Based upon a study performed by an independent engineering firm, the Authority's share of the esti-mated demolition and site reclamation costs is $18.7 million in


1992 dollars ($ 65.3 million in 2014 dollars using a 6% estimated       ing and each consecutive five years thereafter. The Authority made annual inflation rate). The Authority is providing for its share of     its first rebate payment of $ 3.8 million during fiscal year 1995. The the estimated future demolition costs over the remaining life of       next rebate payment to the IRS is due in fiscal year 2000.
1992 dollars ($65.3 million in 2014 dollars using a 6% estimated annual inflation rate). The Authority is providing for its share of the estimated future demolition costs over the remaining life of the power plant (18 years) through annual charges to expense of
the power plant (18 years) through annual charges to expense of
$3.1 million.lIiedemolition liabilityis included as a component of accumulated depreciation and was $9.3 millionand $6.2 millionat June 30, 1996 and 1995, respectively.
$ 3.1 million.lIiedemolition liabilityis included as a component of     ReclassrJicafious Certain reclassifications have been made                                        in the accumulated depreciation and was $ 9.3 million and $ 6.2 million at    fiscal year 1995 financial statements          to  conform      to  the  fiscal                    year June 30, 1996 and 1995, respectively.                                  1996 presentation.
As ofJune 30, 1996, the Authorityhas not billed participants for the cost ofdemolition nor has it established a demolition fund.
As of June 30, 1996, the Authority has not billed participants for the cost of demolition nor has it established a demolition fund.
Unamortized Debt Expenses Unamortized debt issue
Use  of Estimntes The preparation of financial statements in con-formity with generally accepted accounting principles requires Unamortized Debt Expenses Unamortized debt issue costs,             management to make estimates and assumptions that affect the including the loss on refundings, are being amortized over the         reported amounts of assets and liabilities and disclosure of contin-terms of the respective issues and are reported net of accumulated      gent assets and liabilities at the date of the financial statements and amortization. Total deferred loss on refundings, net of accumulated    the reported amounts of revenues and expenses during the report-amortization, was $ 378,070,000 and $ 393,440,000 at June 30, 1996     ing period. Actual results could differ from those estimates.
: costs, including the loss on refundings, are being amortized over the terms of the respective issues and are reported net ofaccumulated amortization. Total deferred loss on refundings, net ofaccumulated amortization, was $378,070,000 and $393,440,000 at June 30, 1996 and 1995, respectively.
and 1995, respectively.
ing and each consecutive five years thereafter. The Authoritymade its first rebate payment of $3.8 millionduring fiscal year 1995. The next rebate payment to the IRS is due in fiscal year 2000.
Inveshunlts Investments include United States Government and           Note 3 Special Funds:
ReclassrJicafious Certain reclassifications have been made in the fiscal year 1995 financial statements to conform to the fiscal year 1996 presentation.
governmental agency securities and repurchase agreements which         The Bond Indentures for the six projects and the Multiple Project are collateralized by such securities. Additionally, the Mead-         Fund require the following special funds to be established to Phoenix Project, the Mead-Adelanto Project and the Multiple             account for the Authority's receipts and disbursements. The Project Fund's investments are comprised of an investment agree-       moneys and investments held in these funds are restricted in use ment with a financial institution earning a guaranteed rate of          to the purposes stipulated in the Bond Indentures. A summary of return. The Southern Transmission System Project has debt service       these funds follows:
Use ofEstimntes The preparation of financial statements in con-formity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure ofcontin-gent assets and liabilitiesat the date ofthe financial statements and the reported amounts ofrevenues and expenses during the report-ing period. Actual results could differfrom those estimates.
reserve funds associated with the 1991 and 1992 Subordinate Fund                  Pu Refunding Series Bonds invested with a financial institution under Construction          'Ib disburse funds for the acquisition and mnstruction of the a specific investment agreement allowed under the Bond Project.
Inveshunlts Investments include United States Government and governmental agency securities and repurchase agreements which are collateralized by such securities.
Indenture earning a guaranteed rate of return.
Additionally, the Mead-Phoenix Project, the Mead-Adelanto Project and the Multiple Project Fund's investments are comprised of an investment agree-ment with a financial institution earning a guaranteed rate of return. The Southern Transmission System Project has debt service reserve funds associated with the 1991 and 1992 Subordinate Refunding Series Bonds invested with a financial institution under a specific investment agreement allowed under the Bond Indenture earning a guaranteed rate of return.
Debt Service          To pay interest and pdncipal related to the Revenue Bonds.
Investments available for sale are carried at aggregate fair value and changes in unrealized net gains or losses are recorded sepa-rately. Investments are reduced to estimated net realizable value when necessary for declines in value considered to be other than
Investments available for sale are carried at aggregate fair value and changes in unrealized net gains or losses are recorded sepa-       Rcvcnuc              To initMlyreceive all revenues and disburse them to other funds.
'emporary. Gains and losses realized on the sale ofinvestments are generally determined using the specific identification method.
rately. Investments are reduced to estimated net realizable value when necessary for declines in value considered to be other than                             To pay operating expenses
As discussed in Note 3, all of the investments are restricted as to their use.
'emporary. Gains and losses realized on the sale of investments are     Reset,u and          Ib pay capital Improlvments and      make up defidcndcs in generally determined using the specific identification method.        Contingency          other funds.
Cash ruid Cash Equivalents Cash and cash equivalents include cash and all investments with original maturities less than 90 days.
As discussed in Note 3, all of the investments are restricted as to     Geneml Rcservc        To make up any defidencies in other funds.
Revenues-Revenues consist ofbillings to participants for the sales of electric energy and of transmission service in accordance with the participation agreements.
their use.                                                            Advance Ibymcnts      lb disburse  funds for thc mst of acquisition of capadty.
Generally, revenues are fixed at a level to recover all operating and debt service costs over the commercial lifeof the property (see Note 6).
Cash ruid Cash Equivalents Cash and cash equivalents include         Proceeds Acmunt      To initiallyreceive the proceeds  of the sale of the hiultiple Project Revenue Bonds.
Debt Experrse Debt expense includes interest on debt and the amortization ofbond discounts, debt issuance expense and loss on refunding costs.
cash and all investments with original maturities less than 90 days.
Arbitrage Rebate-Arebate payable to the Internal Revenue Service (IRS) results from the investment ofthe proceeds from the Multiple Project Revenue Bond offering in a taxable financial instrument that yields a higher rate of interest income than the cost of the associated funds. The excess of interest income over costs is payable to the IRS within five years of the date of the bond offer-Fund Construction Debt Service Rcvcnuc Reset,u and Contingency Geneml Rcservc Pu
Earnings Account      Tb reccivc immtment earnings on the Multiple Prelect Revenue Bonds.
'Ib disburse funds for the acquisition and mnstruction of the Project.
Revenues- Revenues consist of billings to participants for the sales of electric energy and of transmission service in accordance with     Revolving Fund        To pay the Authority's operating expenses.
To pay interest and pdncipal related to the Revenue Bonds.
the participation agreements. Generally, revenues are fixed at         Decommissioning Fund  To accumulate funds rcLued to the future decommissioning a level to recover all operating and debt service costs over the                             of PVNGS, commercial life of the property (see Note 6).                         Issue Fund            'Ib initiallyreceive pledged revenues associated with the applicable subordinated refunding series'Indenture of Thrst Debt Experrse Debt expense includes interest on debt and the                               and pay the related interest and principaL amortization of bond discounts, debt issuance expense and loss on
To initMlyreceive all revenues and disburse them to other funds.
                                                                        ~
To pay operating expenses Ib pay capital Improlvments and make up defidcndcs in other funds.
Escrow account-        To initiallyrecrive pledged revenues assodated with refunding costs.                                                      Subordinate            Component 3 of the 1993 Subordinate Refunding Refunding                                of Trust and pay the rekt ted interest Cross'eries'Indenture Series      and principal.
To make up any defidencies in other funds.
Arbitrage Rebate- A rebate payable to the Internal Revenue Service Acquisition Acmunt    To disburse funds for the acquisition and constmction of the (IRS) results from the investment of the proceeds from the Multiple                           Mead-Phoenix, Mead-Adeianto and San juan pmjects.
Advance Ibymcnts lb disburse funds forthc mst ofacquisition ofcapadty.
Project Revenue Bond offering in a taxable financial instrument that yields a higher rate of interest income than the cost of the associated funds. The excess of interest income over costs is               Allof the funds listed above, except for the Revolving Fund, are payable to the IRS within five years of the date of the bond offer-held by the respective trustees.
Proceeds Acmunt To initiallyreceive the proceeds ofthe sale ofthe hiultiple Project Revenue Bonds.
Earnings Account Tb reccivc immtment earnings on the MultiplePrelect Revenue Bonds.
Revolving Fund To pay the Authority's operating expenses.
Decommissioning Fund To accumulate funds rcLued to the future decommissioning of PVNGS, Issue Fund Escrow account-Subordinate Refunding~ Series
'Ib initiallyreceive pledged revenues associated with the applicable subordinated refunding series'Indenture ofThrst and pay the related interest and principaL To initiallyrecrive pledged revenues assodated with Component 3 ofthe 1993 Subordinate Refunding Cross'eries'Indenture ofTrust and pay the rektted interest and principal.
Acquisition Acmunt To disburse funds for the acquisition and constmction of the Mead-Phoenix, Mead-Adeianto and San juan pmjects.
Allofthe funds listed above, except for the Revolving Fund, are held by the respective trustees.
Note 3 Special Funds:
The Bond Indentures for the six projects and the Multiple Project Fund require the following special funds to be established to account for the Authority's receipts and disbursements.
The moneys and investments held in these funds are restricted in use to the purposes stipulated in the Bond Indentures. A summary of these funds follows:


Palo Verde Project- The balances of the funds required by the Bond                   Hoover Uprrfting Project-The balances in the special funds required Indenture are as follows, in thousands:                                              by the Bond Indenture are as follows, in thousands:
Palo Verde Project-The balances ofthe funds required by the Bond Indenture are as follows, in thousands:
1995                                                                               1995 Debt Service Fund-                                                                   Advance payments Fund                                  $  2,437      $  2,437 Dcbt Senrice Acmunt         $    51~    $ 51394    $ 57 457        $ 52,467    Operating-irking Capital Fund                                563            563 Debt Senrice Reserve Account     74,420      74,160      81,497        81,077  Debt Scnrice Fund-Revenue Fund                               5          5          1              1    Debt Service Account              W90        2390        1,440          1,429 Operating Fund                       20,130      20.134    31,141          31,026    Debt Service Reserve Account      3,122      3,121        3,078          3,068 Reserve and Contingency Fund         25,924      26,107      16,776        17,075  General Reserve Fund                5+18      5316        2,911          2,914 Demnunissioning Trust Fund Issue Fund 34,131 13,026 33,740 13,026 24503 12,486 2~
Hoover UprrftingProject-The balances in the special funds required by the Bond Indenture are as follows, in thousands:
14486 Revolving Fund                                                13              13
1995 1995 Debt Service Fund-Dcbt Senrice Acmunt Debt Senrice Reserve Account Revenue Fund Operating Fund Reserve and Contingency Fund Demnunissioning Trust Fund Issue Fund Revolving Fund Contractual maturities:
                                                                                                                      $ 11,634  $ 11,631    $ 10,442        $ 10,424 Revolving Fund                          45          45          45              45
Withinone >sea After one year through 6ve )'eas After 6ve >eas thmugh ten yeas Aftertcn yeas
                                $ 219,067   $ 218,611   $ 218,906       $ 218,680   Contractual maturitics:
$ 51~
Within one year Contractual maturities:                                                                After one >ear through Within one >sea              $ 69,781    $ 69+91                                      6ve >eas                      9,631     9 628 After one year through                                                                                            $ 11,634   $ 11,631 6ve )'eas                    136,279    136,148 After 6ve >eas thmugh ten yeas                        3,187      3,252 In addition, at June 30, 1996 and 1995, the Authority had After tcn yeas                      9,820      9~                                advances to USBR of $ 10,119,000 and $ 11,903,000, respectively.
74,420 5
                                $ 219,067    $ 218,611 Mead-Phoenix Project The balances in the special funds required Soufheni Transmission Sysfern Project The balances in the special                   by the Bond Indenture are as foHows, in thousands:
20,130 25,924 34,131 13,026 45
funds required by the Bond Indenture are as follows, in thousands:
$ 219,067 51394 74,160 5
Fair Value Amati'ail Cost          Value Acquisition Acmunt              $ 12571    $ 1%71      $ 19,830        $ 19,830 Debt Service Fund-Construction fund-Debt Savice Account               4,976      4,967        4,444          4444 Initial Facilities Amount    $      235  $      235  $      223      $    223 Debt Service Reserve Account     6,133      6,133        6,132          6,132 Debt Service Fund-Debt Service Account Issue Fund                                                  4,924          M73 21,921      21,896     31,480          31/91  Revenue Fund                            64          64 Debt Service Reserve Account      86,220      86,189      66,672          66,857 Operating Fund                        239        239 Operating Fund                        6,015      6,007      5,987         5,987 Revolving Fund General Reserve Fund                  4,194      4,194      9~            9~2                                             6          6 35~
20.134 26,107 33,740 13,026 45
6              6
$ 218,611 69,781 69+91 136,279 136,148 3,187 3,252 9,820 9~
    ~
$ 219,067
Issue Fund                          77,024      76,794      77,768          77P79                                  $ 23,989  $ 23,980    $               $ 35,285 Escmsv  Account-Subordinatc Refunding                                                            Contractual maturities:
$ 218,611 57 457 81,497 1
Series          346,474      343,903    355,101        353,188 Within one )ea               $    ~9    $    2+89 Revolving Fund                            15          15          15            15 After one >sea through 6ve >seas                       1,242      1,233
31,141 16,776 24503 12,486 45
                                $ 542,098    $ 539,233  $ 546,779      $ 544,882    After ten years                20,358     20&8 Contractual maturities:                                                                                              $ 23,989   $ 23,980 Within one >ear              $ 102,008    $ 101,975 After one year thmugtt                                                            Mead-Arlelnnfo Project -The balances in the special funds required 6ve )'Mls                      80,852      80g03 After five yeas through                                                          by the Bond Indenture are as follows, in thousands:
$ 218,906 52,467 81,077 1
ten )'eas                      36,972      34,189 After ten )seas                322,266      322,266
31,026 17,075 2~
                                $ 542.098    $ 539,233                                                                                Fair  moonized              Fair Value        Cost          Value In addition, at June 30, 1996 and 1995, the Authority had non-                  Acquisition Account            $ 36,979  $ 36,979    $ 37,745        $ 37,745 Debt Savice Fund-interest bearing advances outstanding to IPA of $ 19,550,000.                           Dcbt Service Account           15,194    15,166      1'4353          12m Debt Service Rcserm Acmunt     16,865    16,865      17,040          17,010 Issue Fund                                                 16/17          16+46 Revenue Fund                           71        71 Operating Fund                         264        264 Revolving Fund                           6           6          6              6
14486 45
                                                                                                                    $ 69379    $ 69&1       $ 83,661       $ 83A90 Contractual maturities:
$ 218,680 Advance payments Fund Operating-irking Capital Fund Debt Scnrice Fund-Debt Service Account Debt Service Reserve Account General Reserve Fund Revolving Fund Contractual maturitics:
Within one year              $  6,794 $  6,789 After one year thmugh 6ve yeas                      4,161     4,138 After ten >ears                  58,424    58,424
Withinone year Afterone >ear through 6ve >eas W90 3,122 5+18 11,634 9,631 11,634 2390 3,121 5316 11,631 9 628 11,631 2,437 563 1,440 3,078 2,911 13 10,442 2,437 563 1,429 3,068 2,914 13 10,424 In addition, at June 30, 1996 and 1995, the Authority had advances to USBR of $10,119,000 and $11,903,000, respectively.
                                                                                                                    $ 69379    $ 69,351
Soufheni Transmission Sysfern Project The balances in the special funds required by the Bond Indenture are as follows, in thousands:
Mead-Phoenix Project The balances in the special funds required by the Bond Indenture are as foHows, in thousands:
Construction fund-InitialFacilities Amount Debt Service Fund-Debt Service Account Debt Service Reserve Account Operating Fund General Reserve Fund Issue Fund Escmsv Account-Subordinatc Refunding
~ Series Revolving Fund Contractual maturities:
Withinone >ear Afterone year thmugtt 6ve )'Mls After fiveyeas through ten )'eas Afterten )seas 21,921 86,220 6,015 4,194 77,024 21,896 86,189 6,007 4,194 76,794 31,480 66,672 5,987 9~
77,768 31/91 66,857 5,987 9~2 77P79 346,474 15
$ 542,098 343,903 15
$ 539,233 355,101 15
$ 546,779 353,188 15
$ 544,882
$ 102,008
$ 101,975 80,852 80g03 36,972 34,189 322,266 322,266
$ 542.098
$ 539,233 235 235 223 223 Acquisition Acmunt Debt Service Fund-Debt Savice Account Debt Service Reserve Account Issue Fund Revenue Fund Operating Fund Revolving Fund Contractual maturities:
Within one )ea Afterone >sea through 6ve >seas After ten years Fair Amati'ail Value Cost Value 12571
$ 1%71 19,830 19,830 4,976 6,133 64 239 6
23,989 4,967 6,133 64 239 6
23,980 4,444 6,132 4,924 6
$ 35~
4444 6,132 M73 6
35,285
$ ~9 2+89 1,242 1,233 20,358 20&8 23,989 23,980 Fair moonized Fair Value Cost Value Mead-Arlelnnfo Project -The balances in the special funds required by the Bond Indenture are as follows, in thousands:
In addition, at June 30, 1996 and 1995, the Authorityhad non-interest bearing advances outstanding to IPA of$19,550,000.
Acquisition Account Debt Savice Fund-Dcbt Service Account Debt Service Rcserm Acmunt Issue Fund Revenue Fund Operating Fund Revolving Fund Contractual maturities:
Withinone year Afterone year thmugh 6ve yeas Afterten >ears 15,194 16,865 71 264 6
69379 15,166 16,865 71 264 6
$ 69&1 1'4353 17,040 16/17 6
83,661 12m 17,010 16+46 6
83A90 6,794 6,789 4,161 58,424 69379 4,138 58,424 69,351 36,979 36,979 37,745 37,745


Multiple Project Fund The balances in the special funds required                   interest on all moneys or securities (other than in the Construction by the Bond Indenture are as follows, in thousands:                                 Fund) held pursuant to the Bond Indenture and (3) all funds estab-lished by the Bond Indenture.
MultipleProject Fund The balances in the special funds required by the Bond Indenture are as follows, in thousands:
At the option of the Authority, all outstanding Power Project Revenue Bonds and Subordinate Refunding Term Bonds are subject to redemption prior to maturity, except for the 1996 Proceeds Account                $ 256,830  $ 256,830    $ 256/30        $ 256,830 3,278      3,278      1~              1~      Subordinate Refunding Series A which is not redeemable.
Proceeds Account Earnings Account Contractual maturities:
Earnings Account
Withinone year After ten years
                                $ 260,108  $ 260,108    $ 258.214      $ 258,214      The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2003 (1986 Series A Contractual maturities:
$ 256,830
Within one year                $  9,220  $    9,220                              Bonds and 1987 Series A Bonds), 2005 (1989 Series A Bonds), 2010 After ten years                  250,888    250g88                                (1993 Series A Bonds), and 2008 (1996 Subordinate Refunding
$ 256,830
                                $ 260,108  $ 260,10S                                Series B). Scheduled principal maturities for the Palo Verde Project during the five fiscal years followingJune 30, 1996 are $ 25,690,000 San Juan Project      The balances in the special funds required by the in 1997, $ 22,220,000 in 1998, $ 23,580,000 in 1999, $ 25,145,000 in Bond Indenture are as follows, in thousands:                                        2000, and $ 12,860,000 in 2001. The average interest rate on out-standing debt during fiscal year 1996 and 1995 was 5.8% and 6.0%,
$ 256/30 3,278 3,278 1~
1995 respectively.
$ 260,108
Fair                        Fair Value        Cost          Vatue Operating Account Operating Reserve Account
$ 260,108
                                $  1,238 7
$ 258.214 9,220 9,220 250,888 250g88
                                            $    1,23S 7
$ 260,108
                                                        $  1,618 2
$ 260,10S
                                                                        $  1,618 2  Southern Transnnssion Systmn Project   - To finance payments-in-aid Acquisition Account                    527        527        112            112  of construction to IPA for construction of the FIS, the Authority Debt Service Fund-Dcbt Service Account              8,607      8597        6,017          6,017 issued Transmission Project Revenue Bonds pursuant to the Debt Service Reserve Account      18,031      18,031      18,026          18,026  Authority's Indenture of Trust dated as of May 1, 1983 (Senior Rcscrve and Contingency Fund        13077      13~        11,224          11,252  Indenture), as amended and supplemented. The Authority also has Revolving Fund                                                  15              15 issued and has outstanding Tmnsmission Project'Revenue Bonds
$ 256,830 1~
                                $ 41,787  $ 41,783    $ 37.014        $ 37,012 1991 and 1992 Subordinate Refunding Series issued under Contractual matunties:                                                              Indentures of Trust dated as of March 'I, 1991 and June 1, 1992, Within one year                $  7,613  $    7,613 After one year tluough                                                            respectively. The 1991 and 1992 subordinated bonds were issued to five )'eius                    16,149    ~ 16,145                              advance refund certain bonds previously issued under the Senior After ten years                  18,025      18,025 Indenture.
$ 258,214 San Juan Project The balances in the special funds required by the Bond Indenture are as follows, in thousands:
                                  $ 41,787  $ 41,783 The bond indentures provide that the Revenue Bonds and the Subordinate Refunding Series Bonds shall be special, limited oblig-Project Investnfent Sales There were no proceeds from sales                      of ations of the Authority payable solely from and secured solely by investments during fiscal 1996 or 1995.
1995 Fair Fair Value Cost Vatue Operating Account Operating Reserve Account Acquisition Account Debt Service Fund-Dcbt Service Account Debt Service Reserve Account Rcscrve and Contingency Fund Revolving Fund 1,238 7
(1) proceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to STS (see Note 6) and interest on all moneys or securities (other than in the Construction Fund) held Note 4 Long-tcrnt Debt:
527 8,607 18,031 13077 41,787 1,23S 7
pursuant to the Bond Indenture and (3) all funds established by the Reference is made below to the Combined Schedule of Long-term Bond Indenture.
527 8597 18,031 13~
Debt at June 30, 1996 for details related to all of the Authority's out-All outstanding Tmnsmission Project Revenue and Refunding standing bonds.
41,783 1,618 2
Bonds, at the option of the Authority, are subject to redemption
112 6,017 18,026 11,224 15 37.014 1,618 2
                        -To finance the purchase and construction of the            prior to maturity.
112 6,017 18,026 11,252 15 37,012 Contractual matunties:
Palo Verde Project The Bond Indenture requires mandatory sinking fund install-Authority's share of the Palo Verde Project, the Authority issued ments to be made beginning in fiscal year 2003 (for the 1986 Series Power Project Revenue Bonds pursuant to the Authority's A Bonds),     2002 (1986 Series B Bonds) and 2007 (1988 Series A Indenture of Trust dated as of July 1, 1981 (Senior Indenture), as Bonds). Scheduled principal maturities for FIS during the five fis-amended and supplemented. The Authority also has issued and cal years following June 30, 1996 are $ 10,845,000 in 1997, has outstanding Power Project Subordinate Refunding Series
Withinone year Afterone year tluough five )'eius Afterten years 7,613 7,613 16,149
                                                                                      $ 21,565,000 in 1998, $ 22,790,000 in 1999, $ 10,200,000 in 2000, and Bonds issued under an Indenture of Trust dated as of January 1,
~ 16,145 18,025 18,025 41,787 41,783 Project Investnfent Sales There were no proceeds from sales of investments during fiscal 1996 or 1995.
                                                                                      $ 10,115,000 in 2001. The average interest mte on outstanding debt 1993 (Subordinate Indenture). The Subordinate Refunding Bonds during fiscal year 1996 and 1995 was 8.3%.
Note 4 Long-tcrnt Debt:
were issued to advance refund certain bonds previously issued under the Senior Indenture.                                                                                    -
Reference is made below to the Combined Schedule ofLong-term Debt at June 30, 1996 fordetails related to all ofthe Authority's out-standing bonds.
Hoover Uprating Project To finance advance payments       to USBR for The bond indentures provide that the Revenue Bonds and                                                                                    Project, the application to the costs of the Hoover Upmting Subordinate Refunding Bonds shall be special, limited obligations                                                                              Bonds pur-Authority issued Hydroelectric Power Project Revenue of the Authority payable solely from and secured solely by (1) pro-                 suant to the Authority's Indenture of Trust dated as     of March 1, ceeds from the sale of bonds, (2) all revenues, incomes, rents and 1986 (Bond Indenture).
Palo Verde Project -To finance the purchase and construction of the Authority's share of the Palo Verde Project, the Authority issued Power Project Revenue Bonds pursuant to the Authority's Indenture ofTrust dated as of July 1, 1981 (Senior Indenture), as amended and supplemented. The Authority also has issued and has outstanding Power Project Subordinate Refunding Series Bonds issued under an Indenture ofTrust dated as of January 1, 1993 (Subordinate Indenture). The Subordinate Refunding Bonds were issued to advance refund certain bonds previously issued under the Senior Indenture.
receipts attributable to the Palo Verde Project (see Note 6) and
The bond indentures provide that the Revenue Bonds and Subordinate Refunding Bonds shall be special, limited obligations of the Authoritypayable solely from and secured solely by (1) pro-ceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to the Palo Verde Project (see Note 6) and interest on all moneys or securities (other than in the Construction Fund) held pursuant to the Bond Indenture and (3) all funds estab-lished by the Bond Indenture.
At the option of the Authority, all outstanding Power Project Revenue Bonds and Subordinate Refunding Term Bonds are subject to redemption prior to maturity, except for the 1996 Subordinate Refunding Series Awhich is not redeemable.
The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2003 (1986 Series A Bonds and 1987 Series ABonds), 2005 (1989 Series ABonds), 2010 (1993 Series A Bonds), and 2008 (1996 Subordinate Refunding Series B). Scheduled principal maturities for the Palo Verde Project during the five fiscal years followingJune 30, 1996 are $25,690,000 in 1997, $22,220,000 in 1998, $23,580,000 in 1999, $25,145,000 in 2000, and $12,860,000 in 2001. The average interest rate on out-standing debt during fiscal year 1996 and 1995 was 5.8% and 6.0%,
respectively.
Southern Transnnssion Systmn Project -To finance payments-in-aid of construction to IPA for construction of the FIS, the Authority issued Transmission Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of May 1, 1983 (Senior Indenture), as amended and supplemented. The Authorityalso has issued and has outstanding Tmnsmission Project'Revenue Bonds 1991 and 1992 Subordinate Refunding Series issued under Indentures ofTrust dated as of March 'I, 1991 and June 1, 1992, respectively. The 1991 and 1992 subordinated bonds were issued to advance refund certain bonds previously issued under the Senior Indenture.
The bond indentures provide that the Revenue Bonds and the Subordinate Refunding Series Bonds shall be special, limited oblig-ations of the Authority payable solely from and secured solely by (1) proceeds from the sale ofbonds, (2) all revenues, incomes, rents and receipts attributable to STS (see Note 6) and interest on all moneys or securities (other than in the Construction Fund) held pursuant to the Bond Indenture and (3) all funds established by the Bond Indenture.
All outstanding Tmnsmission Project Revenue and Refunding Bonds, at the option of the Authority, are subject to redemption prior to maturity.
The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2003 (for the 1986 Series A Bonds), 2002 (1986 Series B Bonds) and 2007 (1988 Series A Bonds). Scheduled principal maturities for FIS during the five fis-cal years following June 30, 1996 are
$10,845,000 in 1997,
$21,565,000 in 1998, $22,790,000 in 1999, $10,200,000 in 2000, and
$10,115,000 in 2001. The average interest mte on outstanding debt during fiscal year 1996 and 1995 was 8.3%.
Hoover Uprating Project -To finance advance payments to USBR for application to the costs of the Hoover Upmting Project, the Authorityissued Hydroelectric Power Project Revenue Bonds pur-suant to the Authority's Indenture ofTrust dated as of March 1, 1986 (Bond Indenture).


The Bond Indenture provides that the Revenue Bonds shall be         Indenture). The proceeds from the Revenue Bonds, together with special, limited obligations of the Authority payable solely from       dmwdowns from the Debt Service Fund and Project Acquisition and secured solely by (1) the proceeds from the sale of the bonds,     Fund, were used to advance refund $ 64,840,000 of the Multiple (2) all revenues I'rom sales of energy to participants (see Note 6),   Project Revenue Bonds previously transferred to the Mead-(3) interest or other receipts derived from any moneys or securities   Phoenix Project.
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from and secured solely by (1) the proceeds from the sale of the bonds, (2) all revenues I'rom sales of energy to participants (see Note 6),
held pursuant to the Bond Indenture and (4) all funds established           The Bond Indenture provides that the Revenue Bonds shall be by the Bond Indenture (except for the Interim Advance Payments         special, limited obligations of the Authority payable solely from, Account in the Advance Payments Fund).                                 and secured solely by, (1) proceeds from the sale of bonds, (2) all At the option of the Authority, all outstanding Hydroelectric       revenues, incomes, rents and receipts attributable to Mead-Power Project Revenue Bonds are subject to redemption prior to         Phoenix (see Note 6) and interest on all moneys or securities and maturity.                                                              (3) all funds established by the Bond Indenture.
(3) interest or other receipts derived from any moneys or securities held pursuant to the Bond Indenture and (4) all funds established by the Bond Indenture (except for the Interim Advance Payments Account in the Advance Payments Fund).
The Bond Indenture requires mandatory sinking fund install-             At the option of the Authority, all outstanding Mead-Phoenix ments to be made beginning in fiscal year 2007 for the 1991 Series     Revenue Bonds are subject to redemption prior to maturity.
At the option of the Authority, all outstanding Hydroelectric Power Project Revenue Bonds are subject to redemption prior to maturity.
A Bonds maturing on October 1, 2010 and fiscal year 2011 for                 The Bond Indenture requires mandatory sinking fund install-the 1991 Series A Bonds maturing on October 1, 2017. Scheduled         ments to be made beginning in fiscal year 2018 for the 1994 Series principal maturities for the Hoover Upmting Project during the five     Bonds. The first scheduled principal maturity for the Mead-fiscal years following June 30, 1996 are $ 1,085,000 in 1997,           Phoenix Revenue Bonds is $ 1,295,000 in fiscal year 2000. The aver-
The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2007 for the 1991 Series A Bonds maturing on October 1, 2010 and fiscal year 2011 for the 1991 Series A Bonds maturing on October 1, 2017. Scheduled principal maturities for the Hoover Upmting Project during the five fiscal years following June 30, 1996 are $1,085,000 in 1997,
$ 1,'130,000 in 1998, $ 1,230,000 in 1999, $ 1,285,000 in 2000, and      age interest rate on outstanding debt during fiscal year 1996 and
$1,'130,000 in 1998, $1,230,000 in 1999, $1,285,000 in 2000, and
$ 1,400,000 in 2001. The avemge interest mte on outstanding debt         1995 was 6.00/.
$1,400,000 in 2001. The avemge interest mte on outstanding debt during fiscal year 1996 and 1995 was 5.8'/0 and 6.1'/0, respectively.
during fiscal year 1996 and 1995 was 5.8'/0 and 6.1'/0, respectively.
During fiscal 1995, the Authorityrepurchased $340,000 of out-standing Hydroelectric Power Project Revenue Bonds with excess funds in the Advance Payments Fund.
During fiscal 1995, the Authority repurchased $ 340,000 of out-   Mead-Adelanto Proj ect-To finance the Authority's ownership inter-standing Hydroelectric Power Project Revenue Bonds with excess          est in the estimated cost of the project, $ 285,010,000 of the Multiple funds in the Advance Payments Fund.                                     Project Revenue Bonds were tmnsferred to the Mead-Adelanto Project in October 1992. In March 1994, the Authority issued and Multiple Proj ect Fund To finance costs of construction and acqui-      has outstanding $ 173,955,000 of Mead-Adelanto Revenue Bonds sition of ownership interests or capacity rights in one or more        under an Indenture of Trust dated as of January 1, 1994 (Bond projects expected to be undertaken within five years after issuance,    Indenture). The proceeds of the Revenue Bonds, together with the Authority issued Multiple Project Revenue Bonds pursuant to        dmwdowns from the Debt Service Fund and Project Acquisition the Authority's Indenture ofTrust dated as of August 1, 1989 (Bond      Fund, were used to advance refund $ 178,310,000 of the Multiple Indenture), as amended and supplemented.                                Project Revenue Bonds previously transferred to the Mead-The Bond Indenture provides that the Revenue Bonds shall be         Adelanto Project.
MultipleProj ect Fund To finance costs ofconstruction and acqui-sition of ownership interests or capacity rights in one or more projects expected to be undertaken withinfiveyears after issuance, the Authority issued Multiple Project Revenue Bonds pursuant to the Authority's Indenture ofTrust dated as ofAugust 1, 1989 (Bond Indenture), as amended and supplemented.
special, limited obligations of the Authority payable solely from,         The Bond Indenture provides that the Revenue Bonds shall be and secured solely by, (1) proceeds from the sale of bonds, (2) with   special, limited obligations of the Authority payable solely from, respect to each authorized project, the revenues of such authorized    and secured solely by, 1) proceeds from the sale of bonds, (2) all project, and (3) all funds established by the Bond Indenture.          revenues, incomes, rents and receipts attributable to Mead-In October 1992, $ 103,640,000 and $ 285,010,000 of the Multiple    Adelanto (see Note 6) and interest on all moneys or securities and Project Revenue Bonds were transferred to the Mead-Phoenix              (3) all funds established by the Bond Indenture.
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) with respect to each authorized project, the revenues ofsuch authorized project, and (3) all funds established by the Bond Indenture.
Project and the Mead-Adelanto Project, respectively, to finance the        At the option of the Authority, all outstanding Mead-Adelanto estimated costs of acquisition and construction of the projects.        Revenue Bonds are subject to redemption prior to maturity.
In October 1992, $103,640,000 and $285,010,000 ofthe Multiple Project Revenue Bonds were transferred to the Mead-Phoenix Project and the Mead-Adelanto Project, respectively, to finance the estimated costs ofacquisition and construction of the projects.
A total of $ 153,500,000 of the outstanding Multiple Project            The Bond Indenture requires mandatory sinking fund install-Revenue Bonds are not subject to redemption prior to maturity. At      ments to be made beginning in fiscal year 2018 for the 1995 Series the option of the Authority, the balance of the outstanding bonds      Bonds. The first scheduled principal maturity for the Mead-are subject to redemption prior to maturity.                            Adelanto Revenue Bonds is $ 3,560,000 in fiscal year 2000. The The Bond Indenture requires mandatory sinking fund install-        avemge interest rate on outstanding debt during fiscal year 1996 ments to be made beginning in fiscal year 2006 for the 1989 Series      and 1995 was 5.9'/0 and 6.0'/0, respectively.
A total of $153,500,000 of the outstanding Multiple Project Revenue Bonds are not subject to redemption prior to maturity. At the option of the Authority, the balance of the outstanding bonds are subject to redemption prior to maturity.
Bonds. The first scheduled principal maturity for the Multiple Project Revenue Bonds is $ 8,645,000 in fiscal year 2000. The aver-    San juan Project To finance the costs of acquisition of an owner-age interest rate on outstanding debt during fiscal year 1996 and      ship interest in Unit 3 of the SJGS, the Authority issued San Juan 1995 was 6.8'/0.                                                        Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of January 1, 1993 (Bond Indenture).
The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2006 for the 1989 Series Bonds. The first scheduled principal maturity for the Multiple Project Revenue Bonds is $8,645,000 in fiscal year 2000. The aver-age interest rate on outstanding debt during fiscal year 1996 and 1995 was 6.8'/0.
Mead-Phoenix Project To finance the Authority's ownership inter-            The Bond Indenture provides that the Revenue Bonds shall be est in the estimated cost of the project, $ 103,640,000 of the Multiple special, limited obligations of the Authority payable solely from, Project Revenue Bonds were tmnsferred to the Mead-Phoenix              and secured solely by, (1) proceeds from the sale of bonds, (2) all Project in October '1992. In March 1994, the Authority issued and      revenues, incomes, rents and receipts attributable to San Juan (see has outstanding $ 51,835,000 of Mead-Phoenix Revenue Bonds              Note 6) and interest on all moneys or securities and (3) all funds under an Indenture of Trust dated as of January '1, 1994 (Bond          established by the Bond Indenture.
Mead-Phoenix Project -To finance the Authority's ownership inter-est in the estimated cost ofthe project, $103,640,000 ofthe Multiple Project Revenue Bonds were tmnsferred to the Mead-Phoenix Project in October '1992. In March 1994, the Authority issued and has outstanding $51,835,000 of Mead-Phoenix Revenue Bonds under an Indenture of Trust dated as of January
'1, 1994 (Bond Indenture). The proceeds from the Revenue Bonds, together with dmwdowns from the Debt Service Fund and Project Acquisition Fund, were used to advance refund $64,840,000 of the Multiple Project Revenue Bonds previously transferred to the Mead-Phoenix Project.
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) all
: revenues, incomes, rents and receipts attributable to Mead-Phoenix (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.
At the option of the Authority, all outstanding Mead-Phoenix Revenue Bonds are subject to redemption prior to maturity.
The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2018 for the 1994 Series Bonds. The first scheduled principal maturity for the Mead-Phoenix Revenue Bonds is $1,295,000 in fiscal year 2000. The aver-age interest rate on outstanding debt during fiscal year 1996 and 1995 was 6.00/.
Mead-Adelanto Proj ect-To finance the Authority's ownership inter-est in the estimated cost ofthe project, $285,010,000 ofthe Multiple Project Revenue Bonds were tmnsferred to the Mead-Adelanto Project in October 1992. In March 1994, the Authority issued and has outstanding $173,955,000 of Mead-Adelanto Revenue Bonds under an Indenture of Trust dated as of January 1, 1994 (Bond Indenture). The proceeds of the Revenue Bonds, together with dmwdowns from the Debt Service Fund and Project Acquisition Fund, were used to advance refund $178,310,000 of the Multiple Project Revenue Bonds previously transferred to the Mead-Adelanto Project.
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, 1) proceeds from the sale of bonds, (2) all
: revenues, incomes, rents and receipts attributable to Mead-Adelanto (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.
At the option of the Authority, all outstanding Mead-Adelanto Revenue Bonds are subject to redemption prior to maturity.
The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2018 for the 1995 Series Bonds. The first scheduled principal maturity for the Mead-Adelanto Revenue Bonds is $3,560,000 in fiscal year 2000. The avemge interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.9'/0 and 6.0'/0, respectively.
San juan Project To finance the costs of acquisition of an owner-ship interest in Unit 3 of the SJGS, the Authority issued San Juan Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as ofJanuary 1, 1993 (Bond Indenture).
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to San Juan (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.


At the option of the Authority, all outstanding San   Juan Project interest on the bonds is payable from interest earned on invest-Revenue Bonds are subject to redemption prior to maturity.               ments with a financial institution under a specific investment
At the option of the Authority, all outstanding San Juan Project Revenue Bonds are subject to redemption prior to maturity.
    'Ihe Bond Indenture requires mandatory sinking Eund install-         agreement purchased out of the proceeds of the sales and held in ments to be made beginning in fiscal year 2012 for the 1993 Series       bank escrow accounts. After the monies in the escrow accounts are A Bonds. The scheduled principal maturities for the San Juan             applied to redeem the bonds to be called, primarily through fiscal Project Revenue Bonds during the five fiscal years following June        1997, interest on the bonds willbe payable from revenues. The trust 30, 1996 are $ 6,035,000 in 1998, $ 6,275,000 in 1999, $ 6,540,000 in    account assets ($343,898,000 in escrow accounts and $ 2,410,000 in 2000 and $ 6,825,000 in 2001. The average interest rate on out-         unamortized debt expense at June 30, 1996) and liabilities standing debt during fiscal year 1996 and 1995 was 5.3'lo.              ($ 347,388,000, net of bond discounts, at June 30, 1996) for Component 3 are included in the Authority's financial statement.
'Ihe Bond Indenture requires mandatory sinking Eund install-ments to be made beginning in fiscal year 2012 for the 1993 Series A Bonds. The scheduled principal maturities for the San Juan Project Revenue Bonds during the five fiscal years followingJune 30, 1996 are $6,035,000 in 1998, $6,275,000 in 1999, $6,540,000 in 2000 and $6,825,000 in 2001. The average interest rate on out-standing debt during fiscal year 1996 and 1995 was 5.3'lo.
ReJiaiding Bonds In April 1996, the Authority issued $ 152,905,000     The revenue bonds to be refunded are also included in the finan-of Palo Verde 1996 Subordinate Refunding Series A Bonds to               cial statements until the scheduled call date, at which time the refund $ 163,355,000 of previously issued Palo Verde 1987               refunded bonds and related trust account assets will be removed Refunding Series A Bonds and issued $ 58,870,000 of Palo Verde           from the balance sheet and the cost of refunding the debt will be 1996 Subordinate Refunding Series B Bonds to refund $ 18,555,000         included in unamortized debt expenses.
ReJiaiding Bonds InApril1996, the Authorityissued $152,905,000 of Palo Verde 1996 Subordinate Refunding Series A Bonds to refund
and $ 40,315,000 of previously issued Iblo Verde 1986 Refunding               In January 1992, $ 70,680,000 of Mo Verde Special Obligation Series B and 1987 Refunding Series A Bonds, respectively. The           Crossover Series Bonds were issued, the proceeds of which were refunding is expected to reduce total debt service payments over         placed in an irrevocable trust and will be used to redeem the next 13 years by approximately $ 50,967,000 (the difference         $ 69,125,000 of bonds currently included within long term debt at between the debt service payments on the old and new debt)               scheduled call dates.
$163,355,000 of previously issued Palo Verde 1987 Refunding Series A Bonds and issued $58,870,000 of Palo Verde 1996 Subordinate Refunding Series B Bonds to refund $18,555,000 and $40,315,000 of previously issued IbloVerde 1986 Refunding Series B and 1987 Refunding Series A Bonds, respectively. The refunding is expected to reduce total debt service payments over the next 13 years by approximately $50,967,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings of approxi-mately $29,537,000.
and is expected to result in a net present value savings of approxi-         Until the bonds to be reEunded by the Mo Verde Special mately $ 29,537,000.                                                     Obligation Crossover Series Bonds are called, interest on the Mo In March 1994, the Authority issued $ 51,835,000 of Mead-           Verde Special Obligation Crossover Series Bonds is payable f'rom Phoenix Project Revenue Bonds and $ 173,955,000 of Mead-                interest earned on securities of the United States Government pur-Adelanto Project Revenue Bonds to refund $ 243,150,000 of               chased out of the proceeds of the sales and held in bank escrow previously issued Multiple Project Revenue Bonds which were             accounts. After the monies in the escrow accounts are applied to transferred to the Mead-Phoenix and Mead-Adelanto projects               redeem the bonds to be called, primarily through 1996, interest on during fiscal year 1993. The partial refunding of the original issue     the Iblo Verde Special Obligation Crossover Series Bonds will be within five years of its issuance triggered a recalculation of the arbi- payable from revenues. The trust account assets and the liabilityfor trage yield. The recalculation resulted in a higher arbitrage yield     the Palo Verde Special Obligation Crossover Series Bonds are not which reduced the rebate liability of the Authority. At June 30,         included in the Authority's financial statements. At June 30, 1996 1996, cumulative savings due to the rebate calculation amounted to       and 1995, $ 63,849,000 and $ 70,959,000, respectively, of these trust
In March 1994, the Authority issued
$ 6,401,924. This amount was allocated $ 1,707,180 and $ 4,694,744       assets have been offset against the Palo Verde Special Obligation to the Mead-Phoenix and Mead-Adelanto Projects, respectively.            Crossover Series Bonds.
$51,835,000 of Mead-Phoenix Project Revenue Bonds and
In July 1992, the Authority issued $ 475,000,000 of Southern             On July 1, 1995, the crossover date for the Mo Verde Special Tmnsmission Project Revenue Bonds to refund $ 385,385,000 of             Obligation Bonds Series A, trust assets in escrow of $ 7,131,000 previously issued bonds. Principal and interest with respect to the       were used to advance reEund $ 7,125,000 of previously issued 1992 bonds are allocated into four separate components. Each of           bonds.
$173,955,000 of Mead-Adelanto Project Revenue Bonds to refund $243,150,000 of previously issued Multiple Project Revenue Bonds which were transferred to the Mead-Phoenix and Mead-Adelanto projects during fiscal year 1993. The partial refunding of the original issue withinfiveyears ofits issuance triggered a recalculation ofthe arbi-trage yield. The recalculation resulted in a higher arbitrage yield which reduced the rebate liability of the Authority. At June 30, 1996, cumulative savings due to the rebate calculation amounted to
components 1, 2 and 3 is secured by, and payable from, invest-               At June 30, 1996 and 1995, the aggregate amount of debt in all ments in its escrow fund until scheduled crossover dates.                 projects considered to be defeased was $ 3,535,075,000 and Component 4 proceeds of $ 14,100,000 were used to advance               $ 3,305,725,000, respectively.
$6,401,924. This amount was allocated $1,707,180 and $4,694,744 to the Mead-Phoenix and Mead-Adelanto Projects, respectively.
retund approximately $ 9,000,000 of bonds in fiscal year 1993. On the Component 1 Crossover date (January 1, 1994), Component 1           Iuterest Rate Swap In fiscal year 1991, the Authority entered into proceeds of $ 13,959,000 were used in fiscal 1994 to advance reEund     an Interest Rate Swap agreement with a third party for the purpose
In July 1992, the Authority issued $475,000,000 of Southern Tmnsmission Project Revenue Bonds to refund $385,385,000 of previously issued bonds. Principal and interest with respect to the 1992 bonds are allocated into four separate components. Each of components 1, 2 and 3 is secured by, and payable from, invest-ments in its escrow fund until scheduled crossover dates.
$ 13,455,000 of previously issued bonds. On the Component 2             of hedging against interest mte fluctuations arising from the Crossover date (January 1, 1995), Component 2 proceeds of               issuance of the Transmission Project Revenue Bonds, 1991
Component 4 proceeds of $14,100,000 were used to advance retund approximately $9,000,000 of bonds in fiscal year 1993. On the Component 1 Crossover date (January 1, 1994), Component 1 proceeds of$13,959,000 were used in fiscal 1994 to advance reEund
$ 5,519,000 were used in fiscal 1995 to advance refund $ 5,335,000       Subordinate Refunding Series as variable mte obligations. The of previously issued bonds. Proceeds from Component 3 of                 notional amount of the Swap Agreement is equal to the par value
$13,455,000 of previously issued bonds. On the Component 2
$ 343,921,000 were placed in an irrevocable trust and will be used      of the bond ($291,700,000 and $ 292,000,000 at June 30, 1996 and to redeem $ 313,050,000 of bonds currently included within long-         1995, respectively). The Swap Agreement provides for the term debt at scheduled call dates. The combined refunding is            Authority to make payments to the third party on a fixed mte basis expected to reduce total debt service payments over the next            at 6.38'lo, and for the third party to make reciprocal payments 25 years by approximately $ 52,585,000 and is expected to result in      based on a variable rate basis (3.1'/o and 3.9'lo at June 30, 1996 and an ovemll net present value savings of approximately $ 25,060,000.      1995, respectively). The bonds mature in 2019.
Crossover date (January 1, 1995), Component 2 proceeds of
Until the bonds to be refunded by Component 3 are called,
$5,519,000 were used in fiscal 1995 to advance refund $5,335,000 of previously issued bonds.
Proceeds from Component 3 of
$343,921,000 were placed in an irrevocable trust and willbe used to redeem $313,050,000 of bonds currently included within long-term debt at scheduled call dates. The combined refunding is expected to reduce total debt service payments over the next 25 years by approximately $52,585,000 and is expected to result in an ovemll net present value savings of approximately $25,060,000.
Until the bonds to be refunded by Component 3 are called, interest on the bonds is payable from interest earned on invest-ments with a financial institution under a specific investment agreement purchased out of the proceeds of the sales and held in bank escrow accounts. Afterthe monies in the escrow accounts are applied to redeem the bonds to be called, primarily through fiscal 1997, interest on the bonds willbe payable from revenues. The trust account assets ($343,898,000 in escrow accounts and $2,410,000 in unamortized debt expense at June 30, 1996) and liabilities
($347,388,000, net of bond discounts, at June 30, 1996) for Component 3 are included in the Authority's financial statement.
The revenue bonds to be refunded are also included in the finan-cial statements until the scheduled call date, at which time the refunded bonds and related trust account assets willbe removed from the balance sheet and the cost of refunding the debt willbe included in unamortized debt expenses.
In January 1992, $70,680,000 of MoVerde Special Obligation Crossover Series Bonds were issued, the proceeds of which were placed in an irrevocable trust and will be used to redeem
$69,125,000 of bonds currently included within long term debt at scheduled call dates.
Until the bonds to be reEunded by the Mo Verde Special Obligation Crossover Series Bonds are called, interest on the Mo Verde Special Obligation Crossover Series Bonds is payable f'rom interest earned on securities ofthe United States Government pur-chased out of the proceeds of the sales and held in bank escrow accounts. After the monies in the escrow accounts are applied to redeem the bonds to be called, primarilythrough 1996, interest on the IbloVerde Special Obligation Crossover Series Bonds willbe payable from revenues. The trust account assets and the liabilityfor the Palo Verde Special Obligation Crossover Series Bonds are not included in the Authority's financial statements. At June 30, 1996 and 1995, $63,849,000 and $70,959,000, respectively, of these trust assets have been offset against the Palo Verde Special Obligation Crossover Series Bonds.
On July 1, 1995, the crossover date for the MoVerde Special Obligation Bonds Series A, trust assets in escrow of $7,131,000 were used to advance reEund $7,125,000 of previously issued bonds.
AtJune 30, 1996 and 1995, the aggregate amount of debt in all projects considered to be defeased was $3,535,075,000 and
$3,305,725,000, respectively.
Iuterest Rate Swap In fiscal year 1991, the Authority entered into an Interest Rate Swap agreement witha third party forthe purpose of hedging against interest mte fluctuations arising from the issuance of the Transmission Project Revenue
: Bonds, 1991 Subordinate Refunding Series as variable mte obligations. The notional amount of the Swap Agreement is equal to the par value of the bond ($291,700,000 and $292,000,000 at June 30, 1996 and
: 1995, respectively). The Swap Agreement provides for the Authorityto make payments to the third party on a fixed mte basis at 6.38'lo, and for the third party to make reciprocal payments based on a variable rate basis (3.1'/o and 3.9'lo at June 30, 1996 and 1995, respectively). The bonds mature in 2019.


COMBINED SCHEDULE OF LONG-TERM DEBT AT JUNE 303 1996 fin th7outanA)
COMBINED SCHEDULE OF LONG-TERM DEBT AT JUNE 303 1996 fin th7outanA)
I/ate    Effntloe      Maturity on oJ Sate  Interest Rate July  I          Total Principal:
Principal:
Palo Verde Project Revenue and Refunding Bonds               1985A                     05/22/85 9.7%          1996    to 1999  $        1,070 1985B                    07/02/85 9.1%          1996    to 2000          5,610 1986A                    03/13/86 8.2%          1996  to 2006          71,220 1986B                    12/16/86 7.2%          1996  to 2017          96,450 1987A                    02/11/87 6.9%          1996  to 2017          43,720 1989A                    02/1S/89 7.2%          1996  to 2015        287,705 1992A                    01/01/92 6.0%          1996  to 2010            7,265 1992C                    01/01/92 6.0%          '1996  to 2010          15,620 1993Sub                  03/01/93 55%          1996    to 2017          98,200 1993A                      03/01/93 55%          1996    to 2017        270,035 1996A                      02/13/96 4.4%        1996    to 2017        152,905 1996B                      02/29/96 44%          1996    to 2017          58 870 1,108,670 Southern I?ansmission System Project Revenue and Refunding Bonds                                1986A                    03/18/86 8.0%          1996    to 2021        107@00 1986B                    04/29/86 75%          1996    to 2023        401570 1988A                    11/22/88 7.2%          1996    to 2015        154,085 1991A                    IN/17/91 6.4%          2019                  291,700 1992 Comp 1,2,4          07/20/92 6.1%          1996    to 2021          40,639 1992 Comp 3              07/20/92 6.1%          1996    to 2021      431,766 1993A                    07/01/93 S.4%         1996   to 2023       125 865 Hoover Uprating Project Revenue and Refunding Bonds .                                          1986A                   '8/13/86   8.1%         1996 to 2017              4,160 1991                      08/01/91 6.2%         1996 to 2017           31695
Palo Verde Project Revenue and Refunding Bonds Southern I?ansmission System Project Revenue and Refunding Bonds 1985A 1985B 1986A 1986B 1987A 1989A 1992A 1992C 1993Sub 1993A 1996A 1996B 1986A 1986B 1988A 1991A 1992 Comp 1,2,4 1992 Comp 3 1993A I/ate oJ Sate 05/22/85 07/02/85 03/13/86 12/16/86 02/11/87 02/1S/89 01/01/92 01/01/92 03/01/93 03/01/93 02/13/96 02/29/96 03/18/86 04/29/86 11/22/88 IN/17/91 07/20/92 07/20/92 07/01/93 Effntloe Interest Rate 9.7%
                                                                                                                                                'ultiple Project Revenue Bonds Mead-Phoenix Project                                       1989                     01/01/90 7.1%         1999 to 2020            38,800 Mead-Adeianto Project                                      1989                      01/IN/90 7.1%         1999 to 2020          106,700 Multiple Project .                                        1989                      01/04/90 7.1%         1999 to 2020         259 100 Mead-Phoenix Project Revenue Bonds                                                     03/01/94 53%           2006 to 2015            51 835 Mead-Adelanto Projed Revenue Bonds                                                    03/01/94 53%           2006 to 2015          173 955 San Juan Project Revenue Bonds                              1993                      06/01/93 5.6%         1997 to 2020     ~257 75 Total principal amount                                                                                                        ~365 015 Unamortized bond discount:
9.1%
MoVerde    Project                                                                                                              (101,823)
8.2%
Southcmltansmission System Project                                                                                                (1S9,935)
7.2%
Hoover Uprating Project                                                                                                              (3~9)
6.9%
Mead-Phoenix Project Mead-Adelanto Project Multiple Projed Fund
7.2%
                            ........                                                                                                    (4,218)
6.0%
6.0%
55%
55%
4.4%
44%
8.0%
75%
7.2%
6.4%
6.1%
6.1%
S.4%
Maturityon July I 1996 to 1999 1996 to 2000 1996 to 2006 1996 to 2017 1996 to 2017 1996 to 2015 1996 to 2010
'1996 to 2010 1996 to 2017 1996 to 2017 1996 to 2017 1996 to 2017 1996 to 2021 1996 to 2023 1996 to 2015 2019 1996 to 2021 1996 to 2021 1996 to 2023 Total 1,070 5,610 71,220 96,450 43,720 287,705 7,265 15,620 98,200 270,035 152,905 58 870 1,108,670 107@00 401570 154,085 291,700 40,639 431,766 125 865 Hoover Uprating Project Revenue and Refunding Bonds 1986A 1991
'8/13/86 8.1%
08/01/91 6.2%
1996 to 2017 1996 to 2017 4,160 31695
'ultiple Project Revenue Bonds Mead-Phoenix Project Mead-Adeianto Project MultipleProject 1989 1989 1989 01/01/90 7.1%
01/IN/90 7.1%
01/04/90 7.1%
1999 to 2020 1999 to 2020 1999 to 2020 38,800 106,700 259 100 Mead-Phoenix Project Revenue Bonds Mead-Adelanto Projed Revenue Bonds San Juan Project Revenue Bonds Total principal amount Unamortized bond discount:
MoVerde Project Southcmltansmission System Project Hoover Uprating Project Mead-Phoenix Project Mead-Adelanto Project........
MultipleProjed Fund San Juan Project Total unamortized bond discount Long-tenn debt due within one year
'lbtal long-term debt, net (including Subordinate Refunding Crom'eries) 1993 03/01/94 53%
03/01/94 53%
06/01/93 5.6%
2006 to 2015 2006 to 2015 1997 to 2020 51 835 173 955
~257 75
~365 015 (101,823)
(1S9,935)
(3~9)
(4,218)
(12,650)
(12,650)
(16313)
(16313)
San Juan Project                                                                                                              ~8899 Total unamortized bond discount                                                                                                  30742 Long-tenn debt due within one year                                                                                                43 655
~8899 30742 43 655
    'lbtal long-term debt, net (including Subordinate Refunding Crom'eries)                                                                                                    $ 3.213.933
$ 3.213.933


Note S Disclosures about Fair Value of Financial Instrumcntsr                 for their proportionate share of operating and maintenance The following methods and assumptions were used to estimate the               expenses and debt service on Tmnsmission Project Revenue Bonds fair value of each class of financial instruments for which it is pmc-         and other debt. The contmcts expire in 2027 and, as long as any ticable to estimate that value:                                                Transmission Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or Cnsh and cash equivalents -The carrying value approximates fair               adversely affect the rights of the bondholders.
Note S Disclosures about Fair Value of Financial Instrumcntsr The followingmethods and assumptions were used to estimate the fair value of each class offinancial instruments for which it is pmc-ticable to estimate that value:
value because of the short maturity of those instruments.                         In March 1986, the Authority entered into power sales contmcts with six participants of the Hoover Upmting Project (see Note 1).
Long-tenn debt/Special Obligation Crossover Series Bonds/Subordinate Refiutding Crossover Series-The fairvalue ofthe Authority's debt is estimated based on the quoted market prices for the same or sim-ilar issues or on the current avemge rates offered to the Authority fordebt ofapproximately the same remaining maturities, net'of the effect ofa related interest rate swap agreement.
Investnlents/Decouunissioning fiui/Escroto account  Subordinate Under the terms of the contmcts, the participants are entitled to Refiutding Crossover Series/Crossover escrow accounts- The fair values capacity and associated firm energy of the Hoover Uprating Project of investments are estimated based on quoted market prices for the and are obligated to make payments on a "take or pay" basis for same or similar investments.
The fair values of the Authority's financial instruments are as follows (in thousands):
their proportionate share of opemting and maintenance expenses Long-tenn debt/Special Obligation Crossover Series Bonds/Subordinate          and debt service whether or not the Hoover Upmting Project or Refiutding Crossover Series-The fair value of the Authority's debt is          any part thereof has been completed, is operating or is operable, or estimated based on the quoted market prices for the same or sim-              its service is suspended, interfered with, reduced or curtailed or ter-ilar issues or on the current avemge rates offered to the Authority            minated in whole or in part. The contracts expire in 2018, and as for debt of approximately the same remaining maturities, net'of the            long as any Hydroelectric Power Project Revenue Bonds are out-effect of a related interest rate swap agreement.                              standing, cannot be terminated or amended in any manner which The fair values of the Authority's financial instruments are as          win impair or adversely affect the rights of the bondholders.
Abets:
follows (in thousands):                                                            In August 1992, the Authority entered into transmission service contracts with nine participants of the Mead-Phoenix Project (see Note 1). Under the terms of the contracts, the participants are enti-Fait                  Fatr tled to transmission service utilizing the Mead-Phoenix Project and Vitue        Cost      Wue are obligated to make payments on a "take or pay" basis for their Abets:
Cash and cash equivalents Escrow account Subordinate Refunding Crom'eries Decommissioning fund Investments Liabilities:
                                                        $ 120,610  $ '120,610 proportionate share of operating and maintenance expenses and Cash and cash equivalents      $ 173,798 $ 173,798 Escrow account                                                              debt service on the Multiple Project and Mead-Phoenix Revenue Subordinate Refunding                                                    Bonds and other debt, whether or not the Mead-Phoenix Project Crom'eries                    346,468  343,898    345,782    343,921 or any part thereof has been completed, is operating and operable, Decommissioning fund              33,865    33,474      24503      24~
Debt Suboniinate Refunding
Investments                      597,831  597,427    682,916    682,442  or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part. The contracts expire in 2030 and, as
~ Series Fait Fatr Vitue Cost Wue
      ~
$ 173,798
Liabilities:
$ 173,798
Debt                          2,910,200 3,210,790  2,933,261  3,198~      long as any Multiple Project and Mead-Phoenix Revenue Bonds Suboniinate Refunding                                                      are outstanding, cannot be terminated or amended in any manner Series            347@88    385,516    347,782    377,700 which willimpair or adversely affect the rights of the bondholders.
$ 120,610
OJIBalarree Shert Ffrtanrfal                                                      In August 1992, the Authority entered into transmission service
$ '120,610 346,468 33,865 597,831 343,898 33,474 597,427 345,782 343,921 24503 24~
      ~                                                                        contracts with nine participants of the Mead-Adelanto Project Iastrurrrents:
682,916 682,442 2,910,200 3,210,790 2,933,261 3,198~
Spedal Obligation Crammer Series Bonds        63,415    67,739      70,680      75+00  (see Note 1). Under the terms of the contmcts, the participants are escrow accounts    63,849    63,849      70,959      70,959  entitled to transmission service utilizing the Mead-Adelanto Project and are obligated to make payments on a"take or pay"basis for their proportionate share of operating and maintenance Noto 5 Power Sales and Transmission Scrvlco Contracts:                        expenses and debt service on the Multiple Project and Mead-The Authority has power sales contmcts with ten participants of                Adelanto Revenue Bonds and other debt, whether or not the the Palo Verde Project (see Note 1). Under the terms of the con-              Mead-Adelanto Project or any part thereof has been completed, is tracts, the participants are entitled to power output from the                operating and operable, or its service is suspended, interfered with, PVNGS and are obligated to make payments on a "take or pay"                    reduced or curtailed or terminated in whole or in part. The con-basis for their proportionate share of operating and maintenance              tracts expire in 2030 and, as long as any Multiple Project expenses and debt service on Power Project Revenue Bonds and                  and Mead-Adelanto Revenue Bonds are outstanding, cannot be other debt. The contracts expire in 2030 and, as long as any Power            terminated or amended in any manner which will impair or Project Revenue Bonds are outstanding, cannot be terminated or                adversely affect the rights of the bondholders.
347@88 385,516 347,782 377,700 OJIBalarree Shert Ffrtanrfal Iastrurrrents:
amended in any manner which will impair or adversely affect the                    In January 1993, the Authority entered into power sales rights of the bondholders.                                                    contracts with five participants of Unit 3 of the San Juan Project The Authority has tmnsmission service contmcts with six partic-          (see Note 1). Under the terms of the contmcts, the participants are ipants of the Southern Transmission System Project (see Note 1).              entitled to their proportionate share of the power output of the Under the terms of the contracts, the participants are entitled to            San Juan Project and are obligated to make payments on a"take or tmnsmission service utilizing the Southern Tmnsmission System                  pay" basis for their proportionate share of operating and mainte-Project and are obligated to make payments on a"take or pay"basis              nance expenses and debt service on the San Juan Revenue Bonds,
Spedal Obligation Crammer Series Bonds
~ escrow accounts 63,415 63,849 67,739 63,849 70,680 75+00 70,959 70,959 Noto 5Power Sales and Transmission Scrvlco Contracts:
The Authority has power sales contmcts with ten participants of the Palo Verde Project (see Note 1). Under the terms of the con-tracts, the participants are entitled to power output from the PVNGS and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on Power Project Revenue Bonds and other debt. The contracts expire in 2030 and, as long as any Power Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which willimpair or adversely affect the rights of the bondholders.
The Authorityhas tmnsmission service contmcts withsix partic-ipants of the Southern Transmission System Project (see Note 1).
Under the terms of the contracts, the participants are entitled to tmnsmission service utilizing the Southern Tmnsmission System Project and are obligated to make payments on a"take or pay"basis Cnsh and cash equivalents -The carrying value approximates fair value because of the short maturity of those instruments.
Investnlents/Decouunissioning fiui/Escroto account Subordinate Refiutding Crossover Series/Crossover escrow accounts-The fair values ofinvestments are estimated based on quoted market prices for the same or similar investments.
for their proportionate share of operating and maintenance expenses and debt service on Tmnsmission Project Revenue Bonds and other debt. The contmcts expire in 2027 and, as long as any Transmission Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.
In March 1986, the Authorityentered into power sales contmcts with six participants of the Hoover Upmting Project (see Note 1).
Under the terms of the contmcts, the participants are entitled to capacity and associated firmenergy of the Hoover Uprating Project and are obligated to make payments on a "take or pay" basis for their proportionate share of opemting and maintenance expenses and debt service whether or not the Hoover Upmting Project or any part thereof has been completed, is operating or is operable, or its service is suspended, interfered with, reduced or curtailed or ter-minated in whole or in part. The contracts expire in 2018, and as long as any Hydroelectric Power Project Revenue Bonds are out-standing, cannot be terminated or amended in any manner which win impair or adversely affect the rights of the bondholders.
InAugust 1992, the Authorityentered into transmission service contracts with nine participants of the Mead-Phoenix Project (see Note 1). Under the terms ofthe contracts, the participants are enti-tled to transmission service utilizingthe Mead-Phoenix Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on the Multiple Project and Mead-Phoenix Revenue Bonds and other debt, whether or not the Mead-Phoenix Project or any part thereof has been completed, is operating and operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part. The contracts expire in 2030 and, as long as any Multiple Project and Mead-Phoenix Revenue Bonds are outstanding, cannot be terminated or amended in any manner which willimpair or adversely affect the rights ofthe bondholders.
InAugust 1992, the Authorityentered into transmission service contracts with nine participants of the Mead-Adelanto Project (see Note 1). Under the terms ofthe contmcts, the participants are entitled to transmission service utilizing the Mead-Adelanto Project and are obligated to make payments on a"take or pay"basis for their proportionate share of operating and maintenance expenses and debt service on the Multiple Project and Mead-Adelanto Revenue Bonds and other debt, whether or not the Mead-Adelanto Project or any part thereof has been completed, is operating and operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part. The con-tracts expire in 2030 and, as long as any Multiple Project and Mead-Adelanto Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.
In January
: 1993, the Authority entered into power sales contracts with five participants of Unit 3 of the San Juan Project (see Note 1). Under the terms ofthe contmcts, the participants are entitled to their proportionate share of the power output of the San Juan Project and are obligated to make payments on a"take or pay" basis for their proportionate share of operating and mainte-nance expenses and debt service on the San Juan Revenue Bonds,


whether or not Unit 3 of the San Juan Project or any part thereof is       system established by the legislation. The Bill also mandates the operating or operable, or its senrice is suspended, interfered with,       collection of a public benefit charge from all electric utility reduced or curtailed or terminated in whole or in part. The con-           customers in the state. Although these funds (currently estimated tracts expire in 2030 and, as long as any San Juan Revenue Bonds           at 2.5'/o of gross revenues) must be spent on renewable resources, are outstanding, cannot be terminated or amended in any manner             conservation, research and development, or low income rate which willimpair or adversely affect the rights of the bondholders.       subsidies, the governing authority of each consumer-owned utility willcontrol actual expenditures.
whether or not Unit3 ofthe San Juan Project or any part thereof is operating or operable, or its senrice is suspended, interfered with, reduced or curtailed or terminated in whole or in part. The con-tracts expire in 2030 and, as long as any San Juan Revenue Bonds are outstanding, cannot be terminated or amended in any manner which willimpair or adversely affect the rights of the bondholders.
As a participant in the PVNGS, the Authority could be subject Note 7 Costs Rccoverablc from Future Billings to
GAAPitems not induded in billings to partidpants:
Depreciation ofplant Amortization ofbond discount, debt issue costs, and mst of refunding Nudear fuel amortization Decommissioning expense Interest cxpcnse l4Luue Bseat Mance
: tune30, 1996 tune 30, 1995 Aetnt 1996
$ 348328
$ 49323
$ 397,651 206,470 18,650 75.233 23,165 37,745 898 7,610 22,798 244,215 19W8 82,843 45,963 Bond requirements induded in billings to participants:
Operations and maintenance, net ofinvestment inmrnc Costs ofacquisition ofcapacity - SIS Reduction in debt service billings duc to transfer ofexcess funds prindpal repayments Other (67,253)
(18/50) 78,658 (222,130)
~31 740
$ 411,031 (21,062)
(11,099)
(39N9)
~3858
$ 42,796 (88315)
(18~)
67W9 (261,689)
~35598
$ 453W7 Note 7 Costs Rccoverablc from Future Billings to


==Participants:==
==Participants:==
to assessment of retroactive insumnce premium adjustments in the Billings to participants are designed to recover "costs" as defined       event of a nuclear incident at the PVNGS or at any other licensed by the power sales and transmission service agreements. 'Ihe             reactor in the United States.
Billings to participants are designed to recover "costs" as defined by the power sales and transmission service agreements.
billings are structured to systematically provide for debt senrice           The Authority is involved in various legal actions. In the requirements, opemting funds and reserves in accordance with             opinion of management, the outcome of such litigation or claims these agreements. Those expenses, according to generally accepted         will not have a material effect on the financial position of the accounting principles (GAAP), which are not included as                   Authority or the respective separate projects.
'Ihe billings are structured to systematically provide for debt senrice requirements, opemting funds and reserves in accordance with these agreements. Those expenses, according to generally accepted accounting principles (GAAP), which are not included as "costs" are deferred to such periods when it is intended that they be recovered through billings for the repayment of principal on related debt.
"costs" are deferred to such periods when it is intended that they be recovered through billings for the repayment of principal on related debt.                                                             Note 9 subsequent Events:
Costs recoverable from future billings to participants are comprised of the following:
Costs recoverable from future billings to participants are           On July 1, 1996, the crossover date for the Palo Verde Special comprised of the following:                                              Obligation Bonds Series B, trust assets held in escrow of
system established by the legislation. The Bill also mandates the collection of a public benefit charge from all electric utility customers in the state. Although these funds (currently estimated at 2.5'/o of gross revenues) must be spent on renewable resources, conservation, research and development, or low income rate subsidies, the governing authority of each consumer-owned utility willcontrol actual expenditures.
                                                                          $ 63,415,000 were used to advance refund $ 62,000,000 of previously l4Luue      Bseat    Mance tune30,    1996      tune 30,  issued bonds.
As a participant in the PVNGS, the Authority could be subject to assessment ofretroactive insumnce premium adjustments in the event of a nuclear incident at the PVNGS or at any other licensed reactor in the United States.
Aetnt 1995                  1996 In August 1996, the Authority issued $ 89,570,000 of Mo Verde GAAP items not induded in 1996 Subordinate Refunding Series C bonds to refund $ 95,015,000 billings to partidpants:
The Authority is involved in various legal actions. In the opinion of management, the outcome of such litigation or claims will not have a material effect on the financial position of the Authorityor the respective separate projects.
Depreciation of plant                  $ 348328    $ 49323  $ 397,651  of 1986 Refunding Series B bonds. The refunding is expected to Amortization of bond discount,                                          reduce total debt service payments over the next 20 years debt issue costs, and mst of refunding                            206,470    37,745 by approximately $ 24,713,000 (the difference between the debt 244,215 Nudear fuel amortization                  18,650        898    19W8  service payments on the old and new debt) and is expected to Decommissioning expense                    75.233    7,610      82,843 result in a net present value savings of approximately $ 16,955,000.
Note 9 subsequent Events:
Interest cxpcnse                          23,165    22,798      45,963    In September 1996, the Authority issued $ 42,245,000 of Bond requirements induded in billings                                      Transmission Project Revenue Bonds, 1996 Subordinate Refunding to participants:
On July 1, 1996, the crossover date for the Palo Verde Special Obligation Bonds Series B, trust assets held in escrow of
Series A and $ 121,065,000 of Transmission Project Revenue Bonds, Operations and maintenance, net of investment inmrnc              (67,253)  (21,062)    (88315) 1996 Subordinate Refunding Series B to refund $ 68,720,000 and Costs of acquisition of capacity - SIS    (18/50)              (18~)  $ 127,100,000 of the STS 1986 Refunding Series A and B, respec-Reduction in debt service billings duc to transfer of excess funds tively. The refunding is expected to reduce total debt service 78,658  (11,099)    67W9 prind pal repayments                    (222,130)  (39N9)    (261,689) payments over the next 10 years by approximately $ 6,029,000 Other                                  ~31 740    ~3858    ~35598    (the difference between the debt senrice payments on the old and
$63,415,000 were used to advance refund $62,000,000 ofpreviously issued bonds.
                                          $ 411,031  $ 42,796  $ 453W7    new debt) and is expected to result in a net present value savings of approximately $ 3,372,000.
In August 1996, the Authority issued $89,570,000 of MoVerde 1996 Subordinate Refunding Series C bonds to refund $95,015,000 of 1986 Refunding Series B bonds. The refunding is expected to reduce total debt service payments over the next 20 years by approximately $24,713,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings ofapproximately $16,955,000.
Note 8 Commltmcnts and Contlngenclest On August 31, 1996, the California State Legislature approved Bill AB 1890 (Bill) which provides for broad deregulation of the power generation industry in California. The Bill, which is pending approval by the Governo, requires the participation of the state' three investor-owned utilities. Consumer-owned utilities can participate on a voluntary basis but must hold public hearings as part of its decision making process. The Bill, which was supported by the Authority, authorizes the collection of a transition charge for generation when a consumer-owned utility opens its service area to competition and participates in the independent transmission
In September 1996, the Authority issued
$42,245,000 of Transmission Project Revenue Bonds, 1996 Subordinate Refunding Series Aand $121,065,000 ofTransmission Project Revenue Bonds, 1996 Subordinate Refunding Series B to refund $68,720,000 and
$127,100,000 of the STS 1986 Refunding Series A and B, respec-tively. The refunding is expected to reduce total debt service payments over the next 10 years by approximately $6,029,000 (the difference between the debt senrice payments on the old and new debt) and is expected to result in a net present value savings ofapproximately $3,372,000.
Note 8 Commltmcnts and Contlngenclest On August 31, 1996, the California State Legislature approved Bill AB 1890 (Bill)which provides for broad deregulation of the power generation industry in California. The Bill, which is pending approval by the Governo, requires the participation of the state' three investor-owned utilities. Consumer-owned utilities can participate on a voluntary basis but must hold public hearings as part of its decision making process. The Bill,which was supported by the Authority, authorizes the collection ofa transition charge for generation when a consumer-owned utilityopens its service area to competition and participates in the independent transmission


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SUPPLEMENTAL FINANCIALINFORMATION INDEX Palo Verde Pro ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Opemtions for the Years Ended June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Southern Transmission S tern Project Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Opemtions for the Years Ended June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Hoover Upratlng Pro ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Opemtions for the Years Ended June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Mead. Phoenix Project Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Opemtions for the Three Months Ended June 30, 1996 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and '1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Mead-Adelanto Project Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Operations for the Three Months Ended June 30, 1996 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Multi lo Pro ect Fund Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 San Juan Project Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Operations for the Years Ended June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SUPPLEMENTAL FINANCIALINFORMATION INDEX Palo Verde Pro ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Opemtions for the Years Ended June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Southern Transmission S
tern Project Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Opemtions for the Years Ended June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Hoover Upratlng Pro ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Opemtions for the Years Ended June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Mead. Phoenix Project Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Opemtions for the Three Months Ended June 30, 1996 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and '1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Mead-Adelanto Project Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Operations for the Three Months Ended June 30, 1996 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Multi lo Pro ect Fund Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 San Juan Project Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Operations for the Years Ended June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL BALANCE SHEET fin uh7uuranh) junc 50, 1995 ASSETS Utilityplant:
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL BALANCESHEET fin uh7uuranh)
Production .                                                                              $    613,608          $    611,771 Tlallsnusslon                                                                                   14,146                14,146 General                                                                                           4569                  M74 628,491 Less - Acaunulatal depreciation                                                                                     219 881 380@02                408,610 Construction work in progress                                                                     9~                    9,683 Nudcar fueL at amortized cost                                                                   13 223                12716 Net utilityplant   .                                                                       403 030                431,009 Special funds:
Utilityplant:
Production Tlallsnusslon General Less - Acaunulatal depreciation Construction work in progress Nudcar fueL at amortized cost Net utilityplant.
Special funds:
Available for sale at fair value:
Available for sale at fair value:
Decommissioning fund       .                                                                  33,474                24~
Decommissioning fund lnvcstmcnts Interest receivable Cash and cash equivalents Accounts receivable Materials and supplies Costs recoverable from future billings to participants Unrealized loss on investments in funds available for sale ASSETS 613,608 14,146 4569 380@02 9~
lnvcstmcnts                                                                                 115,746                143,600 Interest receivable                                                                               1,512                  1 223 Cash and cash equivalents                                                                       67 879          ~49      354 218 611                218 680 Accounts receivable   .                                                                                                      912 Materials and supplies                                                                             9,240                  9,618 Costs recoverable from future billings to participants                                           204,945                197/15 Unrealized loss on investments in funds available for sale Unamortized debt expenses, less accumulated amortization of $ 65,795 and $ 71+25                 204,693                209 740
13 223 403 030 33,474 115,746 1,512 67 879 218 611 9,240 204,945 junc 50, 1995 611,771 14,146 M74 628,491 219 881 408,610 9,683 12716 431,009 24~
'Ibtal assets   .                                                                          $ 1,041,713           $ '1.067,700 LIABILITIES Long-tenn debt                                                                               $  981,155 Current liabilities:
143,600 1 223
Long-term debt due within one year                                                               25,690                23,855 Acaued interest                                                                                   24~                  30,685 Accounts payablc and acaued expenses                                                             10~                  '16 770 Total aurcnt liabilities                                                                                             71310 Commitments and contingencies Total liabilities                                                                         $ 1,041,713           $ 1.067,700
~49 354 218 680 912 9,618 197/15 Unamortized debt expenses, less accumulated amortization of$65,795 and $71+25
'Ibtal assets 204,693 1,041,713 209 740
'1.067,700 Long-tenn debt Current liabilities:
Long-term debt due within one year Acaued interest Accounts payablc and acaued expenses Total aurcnt liabilities Commitments and contingencies Total liabilities LIABILITIES 981,155 25,690 24~
10~
1,041,713 23,855 30,685
'16 770 71310
$ 1.067,700


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS t176 tl74744547ndS)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS t176 tl74744547ndS) 1996 Y674r Enhd june 30, 1995 Operating revenue:
Y674r Enhd june 30, 1996                              1995 Operating revenue:
SaIes of electric energy Opetatmg expenses:
SaIes of electric energy             .                                                      $  135464                        5  129,180 Opetatmg expenses:
Nudear fuel.
Nudear fuel .                                                                                     7,949                            8,150 Other operations                                                                                 25,815                          25+07 Maintenance                                                                                       6317                            7,825 Depreciation .                                                                                    18,425                          19,145 Deconunissioning                                                                             ~1497                                13 401 Total operating expenses Operating income .                                                                                64,461 Investment income                                                                                   10,886                            9963 Income before debt expense                                                                                                   65@20 Debt expense                                                                                                                         77 976 Costs recoverable from future billings to participants                                     ($     7,430)                     (3   176567 5te tx7tts t474i7x3&#xc3;471 tt44tr777677ts.
Other operations Maintenance Depreciation Deconunissioning Total operating expenses Operating income Investment income Income before debt expense Debt expense Costs recoverable from future billings to participants 135464 7,949 25,815 6317 18,425
~1497 64,461 10,886
($
7,430) 5 129,180 8,150 25+07 7,825 19,145 13 401 9963 65@20 77 976 (3
176567 5te tx7tts t474i7x3&#xc3;471 tt44tr777677ts.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS fin thttsanat&s)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS fin thttsanat&s)
Year Enkd tuna 30, 1996 Cash flows from operating activities:
Cash flows from operating activities:
Costs recoverable from future billings to partidpants .                                      ($      7rI30)                    ($  12,656)
Costs recoverable from future billings to partidpants Adjustments to amve at net cash provided by (used for) operating activitics-Depreciation..
Adjustments to amve at net cash provided by (used for) operating activitics-Depreciation     ..                                                                             18,425                          19,145 Decommissioning .                                                                                17497                          13,401 Amortization of nudear fuel .                                                                      7,949                          8,150 Amortization of debt costs                                                                       24,428                          16,607 Changes in assets and liabilities:
Decommissioning Amortization of nudear fuel Amortization ofdebt costs Changes in assets and liabilities:
Decommissioning fund                                                                           (8,971)                        (1,297)
Decommissioning fund Interest receivable Accounts receivable Materials and supplies Other assets Accrued interest Accounts payable and accrued expenses..
Interest receivable                                                                               (289)                            127 Accounts receivable                                                                               174                            131 Materials and supplies .                                                                          378                            729 Other assets     .                                                                                55                              (2)
Net cash provided by operating activities Cash flows from investing activities:
Accrued interest .                                                                              (6,150)                          (719)
Payments for construction offaciTity Purchases ofinvestments Proceeds frotn sale/maturity of investments Nct cash provided by (used for) investing activities Cash flows from capital and related financing activities:
Accounts payable and accrued expenses       ..                                           ~643                                  3 241 Net cash provided by operating activities                                                 34 629                          46 837 Cash flows from investing activities:
Payment ofpnndpal on long-term debt lbyment ofbond issue costs..
Payments for construction of faciTity .                                                            (10,892)                          (9/69)
Payment for defeasance ofrcvcnue bonds Proceeds from issuance ofrefunding bonds Net cash used forcapital and related financing activities Net increase (decease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end ofyear Supplemental disdosure ofcash flowinformation:
Purchases of investments Proceeds frotn sale/maturity of investments                                                       1~
Cash paid during the year for interest (net ofamount capitalized) 1996
(154,685)                        (97,108) 68,891 Nct cash provided by (used for) investing activities                                     16 732                          37 786 Cash flows from capital and related financing activities:
($
Payment of pnndpal on long-term debt                                                               (23,855) lbyment of bond issue costs     ..                                                                   (4,832)
7rI30) 18,425 17497 7,949 24,428 (8,971)
Payment for defeasance of rcvcnue bonds                                                         (233,632)
(289) 174 378 55 (6,150)
Proceeds from issuance of refunding bonds                                                         229 483 Net cash used for capital and related financing activities                               (32,836)                        (22425)
~643 34 629 (10,892)
Net increase (decease) in cash and cash equivalents                                                   18/25                          (13/54)
(154,685) 1~
Cash and cash equivalents at beginning of period                                               ~49                              ~6708 Cash and cash equivalents at end     of year                                                    $    67,879                      8  49384 Supplemental disdosure of cash flow information:
16 732 (23,855)
Cash paid during the year for interest (net of amount capitalized)                           $     64,499                     $   62.089 Se notes tofinant7a! staten3tne.
(4,832)
(233,632) 229 483 (32,836) 18/25
~49 67,879 64,499 Year Enkd tuna 30,
($
12,656) 19,145 13,401 8,150 16,607 (1,297) 127 131 729 (2)
(719) 3 241 46 837 (9/69)
(97,108) 68,891 37 786 (22425)
(13/54)
~6708 8
49384 62.089 Se notes tofinant7a! staten3tne.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED JUNE 30$ 1996 fin hurusandsi 9 22rrantis-Detrt                                                   RSserre &                   surtNtg gemue             Rettenue           Operating         Gintingeruy   issue         Funds Fund               Fimd               Fund             Fund           Fimd         I &11             7tttal Mance at June 30, 1995                                                        3 137,133         5           -    $    30 948       3     16$ 74   S     12,4S2 $    24.490       $ 216 627 Additions:
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FOR THE YEAR ENDED JUNE 30$ 1996 fin hurusandsi Mance at June 30, 1995 9 22rrantis-Detrt RSserre &
Investment earnings                                                                 4,409                 31              834            1,100          616            749            7,739 Distribution of investment camings .                                                (5,734)             8,604             (1,213)           (1,000)         (657)
surtNtg gemue Rettenue Operating Gintingeruy issue Funds Fund Fimd Fund Fund Fimd I&11 7tttal 3
Discount on investment purchases                                                    1,971                  3              513              336           41                            3,287 Revenue from power sales                                                                49          129,180                  37                6                                      129,272 Distribution of rcvenucs                                                            81,922          (138,843)           39,603              3,989        5325          8,004 Transfers to csaow for refundings    ..                                          (10,413)                78                (93)          (2,886)        4,046                          (9,268)
137,133 5
Transfer from escrow for prinopal and interest payments                          379 634                  951    ~11      06      ~10        81                                      380 099 Total                                                                     451 838                     4         28 614       ~1126         ~972                 9176           S11129 Deductions:
30 948 3
Construction expenditures                                                                                                                   3,060                                          3,060 Operating cxpcnditures   ..                                                                                           31,041                                                5          31,046 Fuel costs.....                                                                                                           8,457                                                            8,457 Bond issue costs                                                                                                                                         3.173                            3.173 Ibyment of principal                                                              23,855                                                                                                23,855 Intcrcst paid                                                                     55,130                                                                                                60,793 Premium and interest paid on investments                                               202                                  115                58                          131              506 Payment of principal and interest on esaow bonds                               3SO 099                                                                                                 380 099 459 236                               39 613               3118         8 836           186         510 989 Mance at Junc 30, 1996                                                        $ 124,685           $            4   $    19,949       $    25582   $    13,017 $    33,530       $ 216,767 1his schedule sununarizes the rccdpts and disbursements in funds requited under thc Bond Indenture and has been prepared from the trust statements.'Ihe balances in thc funds consist of cash and investments at original cost. These balances do not indudc aeaued interest receivable of $ 1,245 and $ 1,223 and Decommissioning Fund acaued intaest receivable of respectively.'Ihese
16$ 74 S
$ 267 and $ 138 at june 30, 1996 and 1995, respectively, nor do they include total amortized net investmcnt discounts of $ 788 and $ 918 at june 30, 1996 and 1995, balances also do not indude utuealizcd loss on investments in funds available for  sale of $ 456 and $ 226 at Junc 30, 1996 and 1995,   ~ly.
12,4S2 24.490 216 627 Additions:
Investment earnings Distribution ofinvestment camings Discount on investment purchases Revenue from power sales Distribution ofrcvenucs Transfers to csaow forrefundings..
Transfer from escrow for prinopal and interest payments 4,409 (5,734) 1,971 49 81,922 (10,413) 379 634 31 8,604 3
129,180 (138,843) 78 951 834 (1,213) 513 37 39,603 (93)
~11 06 1,100 (1,000) 336 6
3,989 (2,886)
~10 81 616 (657) 41 5325 4,046 749 8,004 7,739 3,287 129,272 (9,268) 380 099 Total 451 838 4
28 614
~1126
~972 9176 S11129 Deductions:
Construction expenditures Operating cxpcnditures..
Fuel costs.....
Bond issue costs Ibyment ofprincipal Intcrcst paid Premium and interest paid on investments Payment ofprincipal and interest on esaow bonds 23,855 55,130 202 3SO 099 31,041 8,457 115 3,060 58 3.173 131 3,060 5
31,046 8,457 3.173 23,855 60,793 506 380 099 Mance at Junc 30, 1996 459 236 39 613 3118 8 836 186 510 989 124,685 4
19,949 25582 13,017 33,530 216,767 1his schedule sununarizes the rccdpts and disbursements in funds requited under thc Bond Indenture and has been prepared from the trust statements.'Ihe balances in thc funds consist ofcash and investments at original cost. These balances do not indudc aeaued interest receivable of$1,245 and $1,223 and Decommissioning Fund acaued intaest receivable of
$267 and $138 at june 30, 1996 and 1995, respectively, nor do they include total amortized net investmcnt discounts of $788 and $918 at june 30, 1996 and 1995, respectively.'Ihese balances also do not indude utuealizcd loss on investments in funds available forsale of$456 and $226 at Junc 30, 1996 and 1995,~ly.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAL BALANCESHEET f172~)
                                                                            ~)
Utihtyplant:
SUPPLEMENTAL BALANCE SHEET f172 199S ASSETS Utihty plant:
Transnusslon General Less - Accumulated depreciation Construction work in progress Nct utiTityplant ASSETS 674,606 18 893 693,499 194 127 499 372 199S 675+01 18,893 694,194
Transnusslon                                                                               $    674,606   $  675+01 General                                                                                          18 893      18,893 693,499      694,194 Less  - Accumulated depreciation                                                                194 127  ~174       92 519,802 Construction work in progress                                                                                  1 212 Nct utiTity plant                                                                      499 372      321034 Special funds:
~174 92 519,802 1 212 321034 Special funds:
Available for sale at fair value:
Available for sale at fairvalue:
Investments                                                                                   102,842      144,476 Escrow account - Subordinate Refunding Crosamr Series                                       343,898      343,921 Advance to Intennountain power Agency .                                                         19/50        19~
Investments Escrow account - Subordinate Refunding Crosamr Series Advance to Intennountain power Agency.
Interest receivable                                                                               2,169        1,807 Cash and cash equivalents                                                                 ~90        24      54 678 558 7S3      564 432 Accounts receivable                                                                                               2,469 Costs recoverable hum future billings to participants                                           203,787      183,154 Unrealized loss on investments in funds available for sale                                                       1,897 Unamortized debt expenses, less accumulated amortization of $ 59,752 and $ 51,415                                                         164 247 Total assets                                                                                $  1.431,741   $ 1.445.746 LIABILITIES Long-tenn debt                                                                             $  1 034 757  $ 1,042,002 Subordinate Refunding Crossover Series                                                                         347 782 Current liabilities:
Interest receivable Cash and cash equivalents Accounts receivable Costs recoverable hum future billings to participants Unrealized loss on investments in funds available for sale Unamortized debt expenses, less accumulated amortization of$59,752 and $51,415 Total assets 102,842 343,898 19/50 2,169
Long-tenn debt due within one year                                                               10,845        14325 Accrued interest                                                                                 38,436        39/79 Accounts payable and acaued expenses                                                                 315        2,258 Total cunent liabilities .                                                                 49 596 Commitments and contingcndes Total liabilities                                                                   $  1,431,741   $ 1,445.746
~90 24 558 7S3 203,787 164 247 1.431,741 144,476 343,921 19~
1,807 54 678 564 432 2,469 183,154 1,897 1.445.746 Long-tenn debt Subordinate Refunding Crossover Series Current liabilities:
Long-tenn debt due withinone year Accrued interest Accounts payable and acaued expenses Total cunent liabilities.
Commitments and contingcndes Total liabilities LIABILITIES 1 034 757 10,845 38,436 315 49 596 1,431,741
$ 1,042,002 347 782 14325 39/79 2,258 1,445.746


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS iin huus(tnds)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS iin huus(tnds)
Yav Erukd June 30, 1995 Opemting revenue:
Opemting revenue:
Sales of tmnsmission services                                                           $ $ 5297 Operating expenses:
Sales oftmnsmission services Operating expenses:
Other opemtions                                                                           10,192                          11,839 Maintenance                                                                                 5,236                          4,498 Depreciation .                                                                             20 329                          19 735 Total opcmting expenses                                                                                               36072 Opcmting income                                                                           49~0 Investment income Income before debt expense                                                                                             85,263 Debt expense Costs rccovemblc from fuhue billings to participants                                     ($ 20.633)                   ($   160(0)
Other opemtions Maintenance Depreciation.
&e notts t()fi)u(ntt((ltt()tt)ntnls.
Total opcmting expenses Opcmting income Investment income Income before debt expense Debt expense Costs rccovemblc from fuhue billings to participants
$5297 10,192 5,236 20 329 49~0
($
20.633)
YavErukd June 30, 1995 11,839 4,498 19 735 36072 85,263
($
160(0)
&enotts t()fi)u(ntt((ltt()tt)ntnls.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAl STATEMENT OF CASH FLOWS (bi thou54uur51 Year Enkd June 30, 1995 Cash flows from operating activities:
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAl STATEMENT OF CASH FLOWS (bi thou54uur51 Cash flows from operating activities:
Costs remvcrable from future billings to participants .                                      ($  20,633)                    ($    1~)
Costs remvcrable from future billings to participants Adjustments to anivc at net cash provided by (used for) operating activities-Depreciation Amortization of debt msts Write-offofconstruction workin progress msts Changes in assets and liabilities:
Adjustments to anivc at net cash provided by (used for) operating activities-Depreciation                                                                                     20329                            19,735 Amortization of debt msts                                                                       11,739 Write-offof construction work in progress msts                                                   1313                            11'15 Changes in assets and liabilities:
Interest receivable Accounts receivable Other assets Accrued interest..
Interest receivable   .                                                                          (362)
Accounts payable and accrued expenses Net cash provided by operating activities Cash flows from investing activities:
Accounts receivable                                                                               (218)                          1,940 Other assets .                                                                                                                      17 Accrued interest   ..                                                                           (943)                        10,773 Accounts payable and accrued expenses                                                     ~7943                                ~))
Payments forconstruction of facility Purchases ofinvestments
Net cash provided by operating activities                                                   9282                            29 497 Cash flows from investing activities:
~ from sale/maturity ofinvestments Net cash provided by (used for) investing activities Cash flows from capital and related financing activities:
  ~
Payment for defeasance ofrevenue bonds Repayment ofprincipal on long-term debt Net cash used for capital and related flnancing activities Nct increase in cash and cash equivalents Cash and cash cqirivalents at beginning ofyear Cash and cash equivalents at end of>ear Supplemental disdosure ofcash flowinformation:
Payments for construction of facility .
Cash paid during thc year for interest (nct ofamount capi~
Purchases of investments from sale/maturity of investments Net cash provided by (used for) investing activities (154,904)
($
                                                                                                ~395     93 40 689 (315)
20,633) 20329 11,739 1313 (362)
(218)
(943)
~7943 9282 (154,904)
~395 93 40 689 14,3
~243 35,646 90324 88370 Year Enkd June 30, 1995
($
1~)
19,735 11'15 1,940 17 10,773
~))
29 497 (315)
(94,425) 90 462
(94,425) 90 462
                                                                                                                                ~4,278 Cash flows from capital and related financing activities:
~4,278 (5,479)
Payment for defeasance of revenue bonds                                                                                              (5,479)
~13 615 19 094 6,125 5
Repayment of principal on long-term debt                                                          14,3                        ~13 615 Net cash used for capital and related flnancing activities                            ~243                                  19 094 Nct increase in cash and cash equivalents                                                            35,646                            6,125 Cash and cash cqirivalents at beginning  of year Cash and cash equivalents at end of >ear                                                        $    90324                      5   54.678 Supplemental disdosure of cash flow information:
54.678
Cash paid during thc year for interest (nct of amount  capi~                                $    88370


SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED JUNE 30$ I 996 ffn t 67usands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FOR THE YEAR ENDED JUNE 30$ I996 ffn t 67usands)
GSnstnution Fund. Initial     Dtt7t           Cc7urul F8uititus         Se727ite       Ot7entting   teese727e       Issue Ament              Fund           Fund          Fund            Fund Balance at June 30, 1995                                                   $        222     3 115959       8     6822   8         94N   $    77128   $ 343S69      ~54
GSnstnution Fund. Initial Dtt7t F8uititus Se727ite Ament Fund Cc7urul Ot7entting Fund teese727e Issue Fund Fund Balance at June 30, 1995 222 3
                                                                                                                                                                          $      6N Additions:
115959 8
Investment earnings                                                                 12               6,485           463            635        3,102        18~7          29,264 Distribution of investment earnings                                                                (5,710)         9,408           (596)       6,182        (9,284)
6822 8
Revenue from transmission sales                                                                                  83,953                                                     83,953 Distribution of revenue      ..                                                                    42,530        (78,891)         (5@03)       50,942       (9,278)
94N 77128 343S69
Transfer from escrow for principal and interest payments                                                                                                                  ~1911 Total                                                                     12           56,216         14 933 ~264                   N 226             5       126128 Deductions:
$~54 6N Additions:
Operating expenses .                                                                                                                                                          14,904 Payment of principal                                                                                                                            14+25                        14/25 Intcrcst paid                                                                                     41/76                                        19,286                      60,862 Payment of principal and interest on esaow bonds                                                   1/921                                        26575                        39,496 Premium and interest paid on investment purchases                                                   1,267                             39                                     1/06 Other                                                                                                                                              949                         949 Total                                                                                     55 764         14 9N               39       61 135                     131 842 Balance at Junc 30, 1996                                                   $        234     $ 106,411       $      6.051 $        4,157 $    76,219   $ 343,874       $ 536,946 This schedule sununarizes the receipts and disbursements in funds ettuited under the Bond Indenture and has been prepared from thc tmst statements. The bahnces in the funds consist of cash and investments at original cost.These balances do not indude acaucd interest receivable of $2,169 and $ 1,807 at June 30, 1996 and 1995, respectively, nor do they indude total amortized net investment discounts of $ 2,983 and f4312 at June 30, 1996 and 1995, respectably.112ese bahnccs do not indude ueaeat'zcd loss on investmcnts in funds avaihble for sale of $ 2 865 and $ 1 897 at June 30, 1996 and 1995, respectively.
Investment earnings Distribution of investment earnings Revenue from transmission sales Distribution ofrevenue..
Transfer from escrow forprincipal and interest payments 12 6,485 (5,710) 42,530 463 635 9,408 (596) 83,953 (78,891)
(5@03) 3,102 6,182 50,942 18~7 (9,284)
(9,278) 29,264 83,953
~1911 Total 12 56,216 14 933 ~264 N 226 5
126128 Deductions:
Operating expenses Payment ofprincipal Intcrcst paid Payment ofprincipal and interest on esaow bonds Premium and interest paid on investment purchases Other 41/76 1/921 1,267 39 14,904 14+25 14/25 19,286 60,862 26575 39,496 1/06 949 949 Total 55 764 14 9N 39 61 135 131 842 Balance at Junc 30, 1996 234 106,411 6.051 4,157 76,219 343,874 536,946 This schedule sununarizes the receipts and disbursements in funds ettuited under the Bond Indenture and has been prepared from thc tmst statements. The bahnces in the funds consist of cash and investments at original cost.These balances do not indude acaucd interest receivable of$2,169 and $1,807 at June 30, 1996 and 1995, respectively, nor do they indude total amortized net investment discounts of$2,983 and f4312 at June 30, 1996 and 1995, respectably.112ese bahnccs do not indude ueaeat'zcd loss on investmcnts in funds avaihble forsale of$2 865 and $ 1 897 at June 30, 1996 and 1995, respectively.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL BALANCE SHEET tin thousanh) 1995 ASSETS Special funds:
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL BALANCESHEET tin thousanh)
Investments available for saic at fair value .                                                   $      9,628                    $      7,653 Advances for capacity and energy, nct                                                                 10,119                          11,903 Interest receivable                                                                                         6                              26 Cash and cash equivalents                                                                               1 997                           2,745 31 750                    ~327 Accounts receivable                                                                                           19 Costs rcawcrable fiom future billings to partlcipants                                                     7,538                            7,299 Unrealized loss on investments in funds availablc for sale   ..                                               3                              18 Unamortize debt expenses, Total assets  .
Special funds:
less accumulated amortization of $ 937 and $ 795                   ~37
Investments available for saic at fairvalue.
                                                                                                    $    32,617                     5 3 12 33.156 LIABILITIES Long-tenn debt                                                                                     3  30 931                      $    31,977 Current liabilities:
Advances forcapacity and energy, nct Interest receivable Cash and cash equivalents ASSETS 9,628 10,119 6
Long-term debt due within one year                                                                       1,085                          . 610 Accrued interest                                                                                           489                            500 Accounts payablc and accrued expenses                                                                       62                              69 Total current liabilities                                                                         1,636                          1.179 Commitments and contingencies         .
1 997 31 750 1995 7,653 11,903 26 2,745
Total liabilities                                                                           $    32,617                     $    33,156 SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS tin uhousan61$ )
~327 Accounts receivable Costs rcawcrable fiom future billings to partlcipants Unrealized loss on investments in funds availablc for sale..
Yrar &cbtfuno30, 1996                            1995 Operating revenue:
Unamortize debt expenses, less accumulated amortization of$937 and $795 Total assets 19 7,538 3
Sales of electri energy   .                                                                      $      3349                    $      3W9 Operating expenses:
~37 32,617 7,299 18 3
Capacity charges     ..                                                                                 1,011                          1,207 Energy charges                                                                                             844                            832 Other operations                                                                                           342                            360 Reimbursement of advances for capacity and energy Total operating Operating income .
12 5
                        ~............                                                                         3 2,411 12
33.156 Long-tenn debt Current liabilities:
                                                                                                                                          '1,158 1,149 Investment income                                                                                           874                              514 Income before debt cxpcnse                                                                                                         1,672 Debt expense                                                                                                                               MIO Costs rmwerablc from future billings to participants                                               ($       239)                 ($         693)
Long-term debt due withinone year Accrued interest Accounts payablc and accrued expenses Total current liabilities Commitments and contingencies Total liabilities LIABILITIES 3
30 931 1,085 489 62 1,636 32,617 31,977
. 610 500 69 1.179 33,156 SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS tin uhousan61$ )
Operating revenue:
Sales ofelectri energy Operating expenses:
Capacity charges..
Energy charges Other operations Reimbursement of advances for capacity and energy Total operating~............
Operating income Investment income Income before debt cxpcnse Debt expense Costs rmwerablc from future billings to participants 1996 3349 1,011 844 342 3
1,149 874
($
239)
Yrar&cbtfuno30, 1995 3W9 1,207 832 360 12 2,411
'1,158 514 1,672 MIO
($
693)


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS f178 rru7us457ds)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS f178 rru7us457ds)
Yi44r Eekd fuze 30, 1996                              1999 Cash flows from operating activities:
Cash flows from operating activities:
Costs recoverable from future billings to partidpants   ..                                   ($      239)                      ($        638)
Costs recoverable from future billings to partidpants..
Adjustments to anivc at net cash used for operating activities:
Adjustments to anivc at net cash used for operating activities:
Amortization of debt costs                                                                         294 Changes in assets and liabilities:
Amortization ofdebt costs Changes in assets and liabilities:
interest receivable                                                                                 20 Accounts receivable                                                                               (19)
interest receivable Accounts receivable Other assets Accrued interest Accounts payablc and accrued expenses Net cash provided by (used) foroperating activities Cash fiows from investing activities:
Other assets                                                                                                                           21 Accrued interest Accounts payablc and accrued expenses       .                                                                              ~94      (18)
Purchases ofinvestments
Net cash provided by (used) for operating activities
~ from salelmaturity of investments Advances forcapacity and energy, net Nct cash used forinvesting activities Cash Qows from capital and related financing activities:
~
Payment for defeasance ofrevenue bonds Repayment ofprincipal on long-term debt..
Cash fiows from investing activities:
Net cash used for capital and related financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at bcy'nning ofyear Cash and cash equivalents at cnd ofyear Supplemental disdosurc ofcash Row information:
Purchases of investments from salelmaturity of investments Advances for capacity and energy, net (22,665) 20,705 1,784 (11~6) 9,491 1  415 Nct cash used for investing activities                                                                                       ~640 Cash Qows from capital and related financing activities:
Cash paid during ycar forinterest (net of amount capitalized) 1996
Payment for defeasance of revenue bonds                                                                                                 (319)
($
Repayment of principal on long-term debt     ..                                                     610                        ~860 Net cash used for capital and related financing activities                                       610                              1  179 Net decrease in cash and cash equivalents                                                             (748)
239) 294 20 (19)
Cash and cash equivalents at bcy'nning   of year                                                    2,745                            5451 Cash and cash equivalents at cnd   of year                                                    $    1,997                        5    0,745 Supplemental disdosurc of cash Row information:
(22,665) 20,705 1,784 610 610 (748) 2,745 1,997 5
Cash paid during ycar for interest (net of amount capitalized)                               5     1.978                       $   2059
1.978 Yi44rEekd fuze 30, 1999
($
638) 21 (18)
~94 (11~6) 9,491 1 415
~640 (319)
~860 1 179 5451 5
0,745 2059


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED JUNE 30$ I 996 (tn thousanA)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FOR THE YEAR ENDED JUNE 30$ I996 (tn thousanA)
Dtbt Wortdng          Debt             Stroke         G$ 7ural S$ 7$ 7irc       Rtsrrre       Rts$ 7225 Fund            Am7unt           Ament         Ament           Tbtal Balance at June 30, 1995                                       ~410
Wortdng Fund Dtbt Debt Stroke G$7ural S$7$7irc Rtsrrre Rts$ 7225 Am7unt Ament Ament Tbtal Balance at June 30, 1995
                                                              $                $          -    $        -  3      u0       $          1435   $      3018   ~$         876 ~10
$~410 3
                                                                                                                                                                                $          64 Additions:
u0 1435 3018
Investment earnings                                                 16                2              2                                33          1S2                3 Distribution of investment earnings                                 193                (2)            256          (29)                (90)        (11S)            (213)
~$
Discount on investment purchases                                     85              43                                                289                            211            628 Revenue from paver sales       .....   .
876
3,330                                                                           3,330 Distribution of revenues                                                            165           (3,342)                           3.177 Thnsfer from escrow for principal and interest payments                                    ~2393                     147     ~751                         ~433                            ~382 ~318 Total                                                    ~099                     355                                             5 842             37 ~383 ~613 Deductions:
$~10 64 Additions:
Advances for capacity and energy                                     75                                                                                                                75 Payment of principal                                                                                                                    610                                            610 Administrative expenditures                                                         117                                                                                              348 Interest paid Premium on investment     p~........
Investment earnings Distribution ofinvestment earnings Discount on investment purchases Revenue from paver sales.....
Payment of principal and interest on escrow bonds 1,978 24418 37 1,978 37 70418 Total                                                             311              117                                              4 906            37 Balance at June 30, 1996                                                                       $          -  $      560     $          &71     $    3,083   $        5,259   $    11511 net investment discount of $ 117 and $ 52 at June 30, 1996 and 1995, respectively.'Ihese bahnces aho do not indude at June 30, 1996 and 1995, respectively.
Distribution ofrevenues Thnsfer from escrow for principal and interest payments Total 16 193 85 2
                                                                                                                  ~
2 (2) 256 43 3,330 165 (3,342)
This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust statements.'Ihe bahnces in the funds consist of cash and innstmcnts at orighai cost These balances do not indude accrued interest rcccivablc of $ 6 and $26 at June 30, 'l996 and 1995, respectively, nor do they indude total amortized loss on investments in funds avaihble for sale of $ 3 and $ 18
~2393 147 ~751
~099 355 (29) 3.177
~433 5 842
~382 37 ~383 33 1S2 3
(90)
(11S)
(213) 289 211 628 3,330
~318
~613 Deductions:
Advances for capacity and energy Payment ofprincipal Administrative expenditures Interest paid Premium on investment p~........
Payment ofprincipal and interest on escrow bonds 75 117 610 1,978 24418 37 75 610 348 1,978 37 70418 Total Balance at June 30, 1996 311 117 4 906 37 560
&71 3,083 5,259 11511 This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust statements.'Ihe bahnces in the funds consist ofcash and innstmcnts at orighai cost These balances do not indude accrued interest rcccivablc of$6 and $26 at June 30, 'l996 and 1995, respectively, nor do they indude total amortized net investment discount of$117 and $52 at June 30, 1996 and 1995, respectively.'Ihese bahnces aho do not indude~ loss on investments in funds avaihble forsale of$3 and $18 at June 30, 1996 and 1995, respectively.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-PHOENIXPROJECT SUPPLEMENTAL BALANCESHEET 119$~)
                                                                                  ~)
Utilityplant:
SUPPLEMENTAL BALANCE SHEET 119$
Transmission Geneml Less: Accumulated depreciation ASSETS 48/07 1 921 50,278 846 1995 Construction work in progress Net utilityplant..
1995 ASSETS Utilityplant:
Special funds:
Transmission                                                                               $  48/07 Geneml                                                                                        1 921 50,278 Less: Accumulated depreciation                                                                  846 49,432 Construction work in progress                                                                 3 116 $  39119 Net utilityplant ..                                                                           5~8        39,179 Special funds:
Investments available for sale at fairvalue Interest receivable Cash and cash equivalents Accounts rcccivable Costs recoverable from future billings to participants Unrealized loss on investments in funds available for saIc Prepaid expense Unamortized debt expenses, less accumulated amortization of$1,257 and $736.
Investments available for sale at fair value .                                              21591      32,759 Interest receivable                                                                             841      1,246 Cash and cash equivalents                                                                     1~8        1 280 35 285 Accounts rcccivable                                                                             1,750      1,963 Costs recoverable from future billings to participants                                         1+94 Unrealized loss on investments in funds available for saIc                                         9        51 Prepaid expense                                                                                   26      2,003 Unamortized debt expenses, less accumulated amortization of $ 1,257 and $ 736 .                           10 608
49,432 3 116 5~8 21591 841 1~8 1,750 1+94 9
                                                                                            $  89595  $  88.889 LIABIUTIES Long-term debt                                                                             $  86,417 $  86,267 Current liabiTitics:
26 89595 39119 39,179 32,759 1,246 1 280 35 285 1,963 51 2,003 10 608 88.889 Long-term debt Current liabiTitics:
Acaucd interest                                                                               2,588 Accounts payable                                                                               590 Total current liabilities .                                                               3,178 Commitments and contingencies Total liabiTities                                                                     $ 89395 $  88.889
Acaucd interest Accounts payable Total current liabilities.
Commitments and contingencies Total liabiTities LIABIUTIES 86,417 2,588 590 3,178 89395 86,267 88.889


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MEAD PHOENIX PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS THREE MONTHS ENDED JUNE 30$ 1996*
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD PHOENIX PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS THREE MONTHS ENDED JUNE 30$ 1996*
fin housan4ts)
fin housan4ts)
Operating revenue:
Operating revenue:
Sales of tmnsmission services Operating expenses:
Sales of tmnsmission services Operating expenses:
Other operations       .                                                                      213 Maintenance .                                                                                    13 Depredation                                                                                     342 Total operating expenses (342)
Other operations Maintenance Depredation Total operating expenses Investment income Income before debt expense Debt expense Costs recoverable from future billings to participants 213 13 342 (342) 410 1462
Investment income                                                                                 410 Income before debt expense Debt expense                                                                                     1462 Costs recoverable from future billings to participants                                       ($ 1264)
($
1264)
See notes lofinancid stalen$ ents
See notes lofinancid stalen$ ents
'Operations commenced April 1996.
'Operations commenced April1996.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS f/2$ 6$ 6uSa226b) 1995 Cash flows from operating activities:
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-PHOENIXPROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS f/2$ 6$6uSa226b)
Cost recoverable from future billings to participants                                         $  1  94 Adjustments to amve at net cash provided by (used for) operating activities:
Cash flows from operating activities:
Depreciation .                                                                                    342 Amortizafion of debt costs   ..                                                                   167 Changes in assets and liabilities:
Cost recoverable from future billings to participants Adjustments to amve at net cash provided by (used for) operating activities:
Intcrcst receivable ..                                                                         405 Accounts receivable                                                                             213 Other assets                                                                                 1,977 Accounts payable                                                                               556 Net cash provided by operating activities   .
Depreciation Amortizafion ofdebt costs..
Changes in assets and liabilities:
Intcrcst receivable..
Accounts receivable Other assets Accounts payable Net cash provided by operating activities.
Cash flows from investing activities:
Cash flows from investing activities:
Interest received on investmcnts                                                                                 4,251 Payments for construction of facility                                                            (13,208)    (21410)
Interest received on investmcnts Payments forconstruction offacility Purchases ofinvestments Proceeds from sale/maturity ofinvestments Reimbursement fromWAPA..
Purchases of investments                                                                        (3,264)      (2,725)
Nct cash (used for) provided by investing activities Cash flmvs from capital and related financing activities:
Proceeds from sale/maturity of investments                                                        16L474      26,078 Reimbursement from WAPA        ..                                                                                 83 Nct cash (used for) provided by investing activities                                                       6 312 Cash flmvs from capital and related financing activities:
Payment ofinterest on long-term debt..
Payment of interest on long-term debt Payment for bond issue costs Net cash used for capital and related finandng activities
Payment forbond issue costs Net cash used forcapital and related finandng activities Net Increase in cash and cash equivalents Cash and cash equivalents at beginning ofyear Cash and cash equivalents at end ofyear Supplemental disdosure ofcash flowinformation:
                                                                                                          ~8    (5,093) 5 102 Net Increase in cash and cash equivalents                                                                         1,275 Cash and cash equivalents at beginning     of year                                                  1 280 Cash and cash equivalents at end   of year                                                    $  2668  $      1.2M Supplemental disdosure of cash flow information:
Cash paid during the period for interest (net of amount capitalized) 1 94 342 167 405 213 1,977 556 (13,208)
Cash paid during the period for interest (net of amount capitalized)
(3,264) 16L474 1 280 2668 1995 4,251 (21410)
(2,725) 26,078 83 6 312 (5,093)
~8 5 102 1,275 1.2M


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MEAD PHOENIX PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FORTHE YEAR ENDED JUNE 30$ 1996 tin thus427uh)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD PHOENIX PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FORTHE YEAR ENDED JUNE 30$ 1996 tin thus427uh)
Dd7t
Dd7t
                                                                                                          $ $ 727ue Sc777k>>       R2s$ 727s       It7n7rnus     issue           Otscnt ting Aaount       6tc727unt       Fund         Fund             Fund           Tbt6d Balance at June 30, 1995                                                 $    18972       $      4288 $        8916   $            $      4994       $              $      34,170 Additions:
$$727ue Sc777k>>
Investment earnings                                                                                               435                                                        2,441
R2s$ 727s It7n7rnus issue Otscnt ting Aaount 6tc727unt Fund Fund Fund Tbt6d Balance at June 30, 1995 18972 4288 8916 4994 34,170 Additions:
  'itansfer of investments                                                                                          (435)
Investment earnings
Reimbursement from WAPA                                                                                                                                                         80
'itansfer ofinvestments Reimbursement from WAPA
  'iiansmission revenue...                                                                                                                                                       360 Transfer of monthly transmission costs                                                                                 ~2!t7t                                  297 Total                                                                   1 644                                                                              297  ~881 Deductions:
'iiansmission revenue...
Construction <<xpendihues                                                                                                                                                     8~
Transfer ofmonthly transmission costs Total Deductions:
Interest paid                                                                                                                                                                 5,176 Premium and interest paid on investment purchases                                                                                             89                                89 Operating expenses     ..                                                                                                                                                       60 8,536             2,642                               ~629                         60       '13,861 Nance at June 30, 1996                                                   $    12,080       $      2367   $        5,916 $        65 $      Z525       $        237 $    23,190 1Ius schedule sununarizcs the receipts and isbursemcnts in funds ~       under the Bond Indenture and has been prepared from the trust statements.1hc balances in the funds consist of cash and investments at orighal cost.'Ihese balances do not indude accrued intent receivable of $841 and $ 1,246 at June 30, 1996 and 1995, respectively, nor do they indude total amortized net investment premiums of $ 42 and $ 80 at June 30, 1996 and 1995, respecuvely. 1hese balances do not indude unrealized loss on investments in funds available for sale of
Construction <<xpendihues Interest paid Premium and interest paid on investment purchases Operating expenses..
$ 9 and $ 51 at June 30, 1996 and 1995, espectimly.
1 644 435 (435)
~2!t7t 89 2,441 80 360 297 297
~881 8~
5,176 89 60 8,536 2,642
~629 60
'13,861 Nance at June 30, 1996 12,080 2367 5,916 65 Z525 237 23,190 1Ius schedule sununarizcs the receipts and isbursemcnts in funds~ under the Bond Indenture and has been prepared from the trust statements.1hc balances in the funds consist of cash and investments at orighal cost.'Ihese balances do not indude accrued intent receivable of $841 and $1,246 at June 30, 1996 and 1995, respectively, nor do they indude total amortized net investment premiums of$42 and $80 at June 30, 1996 and 1995, respecuvely. 1hese balances do not indude unrealized loss on investments in funds available for sale of
$9 and $51 at June 30, 1996 and 1995, espectimly.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MEAD ADELANTO PROJECT SUPPLEMENTAL BALANCE SHEET fin thousands) jun@ 30 1996                1995 ASSETS UtiTityplant:
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD ADELANTOPROJECT SUPPLEMENTAL BALANCESHEET fin thousands)
Transmission                                                                               $  171,068 General                                                                                           164 171 232 Less: Accumulated depreciation                                                                   1 255 Construction work in progress                                                                                   $  154 011 Net utilityplant   ..                                                                           '169 977            154 011 Special funds:
UtiTityplant:
Investments available for sale at fair value                                                   62,562              76,235 Interest receivable                                                                             2,285              2,976 Cash and cash equivalents                                                                                           4,279 69  1 Accounts receivable                                                                               4,741              4,669 Costs recoverable from future billings to participants Unrealized loss on investments in funds available for saic Prepaid expense Unamortized debt expenses, less accumulated amortization of $ 3582 and $2,098                     28125              29 607 Total assets                                                                           $  276,669         $  275.481 LIABILITIES Long-term debt                                                                                                   ~$  267 61 Current liabilities:
Transmission General Less: Accumulated depreciation Construction work in progress Net utilityplant..
Accrued interest                                                                                 7,884              7,885 Accounts payable                                                                                   780                  35 Total current liabilities .                                                                 8,664 Commitments and contingencies Total liabilities                                                                     $  276,669         $   278,481
Special funds:
Investments available for sale at fair value Interest receivable Cash and cash equivalents Accounts receivable Costs recoverable from future billings to participants Unrealized loss on investments in funds available for saic ASSETS 1996 171,068 164 171 232 1 255
'169 977 62,562 2,285 69 1
4,741 jun@ 30 1995 154 011 154 011 76,235 2,976 4,279 4,669 Prepaid expense Unamortized debt expenses, less accumulated amortization of$3582 and $2,098 Total assets 28125 276,669 29 607 275.481 Long-term debt Current liabilities:
Accrued interest Accounts payable Total current liabilities.
Commitments and contingencies Total liabilities LIABILITIES 7,884 780 8,664 276,669
~$
267 61 7,885 35 278,481


SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS THREE MONTHS ENDED JUNE 30s 1996*
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS THREE MONTHS ENDED JUNE 30s 1996*
tIn t7asananh)
tIn t7asananh)
Operating revenue Sales of transmission services                                                             $  172 Opcratlng expenses:
Operating revenue Sales oftransmission services Opcratlng expenses:
Other operations       .                                                                      145 Maintenance                                                                                     27 Depredation                                                                                 1 132 Total operating expenses Operating loss                                                                         1 132 Investment income         .                                                                    1 174 Income before debt expense                                                                 42 Debt expense       .                                                                            4,425 Costs recoverable from future billings to participants                                       (3 3233)
Other operations Maintenance Depredation Total operating expenses Operating loss Investment income Income before debt expense Debt expense Costs recoverable from future billings to participants 172 145 27 1 132 1 132 1 174 42 4,425 (3
See notes to financia statements.
3233)
'Operations commenced April 1996.
See notes tofinancia statements.
'Operations commenced April1996.


SOUTHERN CALIFORNIA PUIILIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS tin thousands) 1996          1995 Cash flows from opemting activities:
SOUTHERN CALIFORNIAPUIILIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS tin thousands)
Cost recoverable &om future billings to participants                                         ($    4+83)
Cash flows from opemting activities:
Adjustments to anive at net cash provided by (used for) operating activities:
Cost recoverable &omfuture billings to participants Adjustments to anive at net cash provided by (used for) operating activities:
Depreciation                                                                                     1.132 Amortization of debt  costs.......                                                                 482 Changes in assets and liabilities:
Depreciation Amortization ofdebt costs.......
Interest receivable ..                                                                           691 Accounts receivable                                                                               (72)
Changes in assets and liabilities:
Prepaid expense                                                                               3,467 Acaued interest                                                                                     (I)
Interest receivable..
Accounts payable                                                                                 745 Net cash provided by operating adivities .
Accounts receivable Prepaid expense Acaued interest Accounts payable Net cash provided by operating adivities.
Cash flows from investing activities:
Cash flows from investing activities:
Interest received on investments     ..                                                                         11+16 Payments for construction of facility                                                             (15,652)      (71,033)
Interest received on investments..
Purchases of investments                                                                          (9,184)      (4,627)
Payments forconstruction of facility Purchases ofinvestments Proceeds horn sale/maturity of investments Rcimburscment fromWAPA........
Proceeds horn sale/maturity of investments                                                         23,000        84,113 Rcimburscment from      WAPA........
Nct cash (used for) provided by investing adivities Cash flows from capital and related financing activities:
Nct cash (used for) provided by investing adivities                                                         19797 Cash flows from capital and related financing activities:
Payments ofinterest on long-term debt Payment forbond issue costs Net cash used forcapital and related Gnancing activities Net increase in cash and cash cquivalcnts Cash and cash equivalents at beginning ofyear Cash and cash equivalents at cnd ofyear Supplemental disdosure ofcash flowinformation:
Payments of interest on long-term debt Payment for bond issue costs                                                                               ~$  (15,487) 15 18 7
Cash paid during the period for interest (net of amount capitalized) 1996
Net cash used for capital and related Gnancing activities Net increase in cash and cash cquivalcnts                                                                         4,279 Cash and cash equivalents at beginning   of year                                                    4 279 Cash and cash equivalents at cnd   of year                                                    $    4~      $    4.279 Supplemental disdosure of cash flow information:
($
Cash paid during the period for interest (net of amount capitalized)
4+83) 1.132 482 691 (72) 3,467 (I) 745 (15,652)
(9,184) 23,000 4 279 4~
1995 11+16 (71,033)
(4,627) 84,113 19797 (15,487)
~$ 7 15 18 4,279 4.279


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED JUNE 300 I 996 fin thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FOR THE YEAR ENDED JUNE 300 I996 fin thousands)
Debt Debt           $ 7727ioe Acquisition        Shia            Reseirle       Operating     Issue         Reoenue Aemunl            Aimunt          Aemunt         Fund           Fund           Fund             Tbta!
Acquisition Aemunl Debt Shia Aimunt Debt
Balance at June 30, 1995                                                   3   36,134       S   11793     S     16267   3             S     16,760   S Additions:
$7727ioe Reseirle Operating Issue Reoenue Aemunt Fund Fund Fund Tbta!
Investment camings                                                             3,217                 772             1,196                         517              1            S,704 Transfer of investment earnings                                                                    1,196           (1,196)
Balance at June 30, 1995 3
Reimbursement from WAPA .                                                          13                                                                                               13 Transfers to opemting fund                                                                                                          451                          (451)
36,134 S
Tmnsmission revenue                                                                                                                                                521             521 Total                                                                     3 230               '1,968                           452           517 Deductions:
11793 S
Construction expenditures                                                     3,697                                                                                              3,697 Interest paid                                                                                     7,264                                          8,505                          15,769 Premium and interest paid on investment purchases                                                                                                   298                            298 Operatmg expenses .                                                                  2                                               189                                            191 Total                                                                      3 699               7 264                             189         0840               -          19 93S Mance at June 30, 1996                                                                         3     6497     3     16.267   S       263   $      8,474   $        71   3     67.237 1Ms schedule summarizes the receipts and d'sbursements in funds requital under the Bond Indenture and has been prepared from the trust statements. The bahnces in thc funds consist of cash and investments at origlnal cost. These balances do not indude acctucd interest receivable of $ 2285 and $ 2,976 at June 30, 1996 and 1995, rcspomvcly, nor do they indude total amortized nct investment premiums of $ 143 and $269 at June 30, 1996 and 1995,   ~vcly.         These balances do not indude unrealized loss on investments in funds available for sale of
16267 3
$ 28 and $ 171 at June 30, 1996 and 1995, respectively.
S 16,760 S
Additions:
Investment camings Transfer ofinvestment earnings Reimbursement from WAPA.
Transfers to opemting fund Tmnsmission revenue 3,217 13 772 1,196 1,196 (1,196) 451 517 1
S,704 13 (451) 521 521 Total 3 230
'1,968 452 517 Deductions:
Construction expenditures Interest paid Premium and interest paid on investment purchases Operatmg expenses Total 3,697 7,264 2
3 699 7 264 189 8,505 298 3,697 15,769 298 191 189 0840 19 93S Mance at June 30, 1996 3
6497 3
16.267 S
263 8,474 71 3
67.237 1Ms schedule summarizes the receipts and d'sbursements in funds requital under the Bond Indenture and has been prepared from the trust statements. The bahnces in thc funds consist ofcash and investments at origlnal cost. These balances do not indude acctucd interest receivable of$2285 and $2,976 at June 30, 1996 and 1995, rcspomvcly, nor do they indude total amortized nct investment premiums of$143 and $269 at June 30, 1996 and 1995, ~vcly.These balances do not indude unrealized loss on investments in funds available for sale of
$28 and $171 at June 30, 1996 and 1995, respectively.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL BALANCE SHEET tin thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL BALANCESHEET tin thousands)
June 30, 1996                            1995 ASSETS Special funds:
Special funds:
Investments available for saic at fair va! ue                                                 $  250,888                       $  249,020 Interest receivable                                                                                9220                            9 194 Total assets                                                                            $  260,108                      $  258.214 LIABILITIES Long-term debt                                                                                 ~24
Investments available for saic at fair va!ue Interest receivable Total assets ASSETS 1996 250,888 9220 260,108 June 30, 1995 249,020 9 194 258.214 LIABILITIES Long-term debt Arbitrage rebate payablc Accounts payable to Mead-Phoenix Project and Mead-Adelanto Project Deferred credits Current liabilities:
                                                                                                $      786                      $  242,107 Arbitrage rebate payablc Accounts payable to Mead-Phoenix Project and Mead-Adelanto Project                                   6 402                            6,632 Deferred credits                                                                                                                       1,141 Current liabilities:
Accrued interest Commitments and contingcncics
Accrued interest                                                                                   8,256                            8 257 Commitments and contingcncics
'otal liabilities
    'otal liabilities                                                                         5 u0,108                       $  258.214 SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL STATEMENT OF CASH FLOWS fln thousands)
$~24 786 6 402 8,256 5
Year Ended June 30, 1995 Cash flows from operating activities Cash flows from investing activities:
u0,108 242,107 6,632 1,141 8 257 258.214 SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLEPROJECT FUND SUPPLEMENTAL STATEMENT OF CASH FLOWS flnthousands)
Interest received on investments                                                                 18+80                          18,470
Cash flows from operating activities Cash flows from investing activities:
  ~
Interest received on investments Arbitrage payment Purchases of investmcnts
Arbitrage payment Purchases of investmcnts from sale/maturity of investmcnts Net cash provided by investing activities                                               ~I6 (1,868) 12 (3,757)
~ from sale/maturity ofinvestmcnts Net cash provided by investing activities Cash flows from capital and related financing activities:
(1,958) 3 757 16/12 Cash flows from capital and related financing activities:
Payments ofinterest on long-term debt Nct cash used forcapital and financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning ofyear Cash and cash cquivalcnts at cnd ofyear 18+80 (1,868)
16 12                            16 12 Payments of interest on long-term debt 16512                            16 12 Nct cash used for capital and financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash cquivalcnts at cnd of year Sre notre tofina7dal ttaten7enls.
~I6 12 16 12 16512 Year Ended June 30, 1995 18,470 (3,757)
(1,958) 3 757 16/12 16 12 16 12 Sre notre tofina7dal ttaten7enls.


SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLEPROJECT FUND SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FOR THE YEAR ENDED JUNE 3031996 ff72~)
                                                                                            ~)
Mance at June 30, 1995 247 727 842772ingS 44274472t 1 293 249020 Additions:
REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED JUNE 3031996 ff72 842772ingS 44274472t Mance at June   30, 1995                                                                             $      247 727                               $          1 293 $ 249020 Additions:
investment earnings......
investment earnings......                                                                                     18,208                                            172    18,380 Transfer to earnings account                                                                                 (16512)                                        16412 Transfer to debt service account                                                                                                     16 12       ~16           512 Total                                                                                                                   ~16          12                    172 ~13 Deductions:
Transfer to earnings account Transfer to debt service account 18,208 (16512) 16 12 172 16412
interest paid                                                                                                               ~16         12                           16 512 Total                                                                                                                            16 512                         ~16   12 Balance at June 30, 1996                                                                              $      249,423                              S           1,465 This schedule summarizes the receipts and disbursements in funds required under the Bond indenture and has been prepared from the trust statements.1he Mances in the funds consist of investments at original cost.'Ihese balances do not indude accrued interest receivable of $ 9,220 and $ 9,19I at June 30, 1996 and 1995, espectbely.
~16 512 18,380 Total Deductions:
interest paid Total Balance at June 30, 1996 249,423
~16 12
~16 12 16 512 172
~13 16 512
~16 12 S
1,465 This schedule summarizes the receipts and disbursements in funds required under the Bond indenture and has been prepared from the trust statements.1he Mances in the funds consist of investments at original cost.'Ihese balances do not indude accrued interest receivable of$9,220 and $9,19I at June 30, 1996 and 1995, espectbely.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SAN jUAN PROIECT SUPPLEMENTAL BALANCE SHEET t17$ 4$ 627nids) 1995 ASSETS Utilityphut:
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN jUAN PROIECT SUPPLEMENTAL BALANCESHEET t17$ 4$627nids)
Production                                                                                 $ 183,309 $  183~
Utilityphut:
General                                                                                       8613      7 688 191,922    190,997 Less - Accumulated depreciation                                                             36 622    24,415 Construction work in process                                                               ~31 155+00    166/82 2,488 Net utilityplant   .                                                                   158 Ml    169 070 Special funds:
Production General Less - Accumulated depreciation Construction work in process Net utilityplant.
Investments available for sale at fair value                                                  34,170    28,699 Interest receivable                                                                               67          69 Cash and cash equivalents                                                                     7 546      8 274 41,783    37,042 Accounts receivable     ..                                                                                 1,891 Materials and supplies                                                                           3~9        3,679 Costs recoverable from future billings to participants                                         31,780 Unrealized loss (gain) on investments in funds availablc for sale                                             (28)
Special funds:
Unamortized debt expenses, less accumulated amortization of $ 942 and $ 628                                 3,461 Total assets                                                                           $ 239,972 $  238,178 LIABILITIES Long-term debt                                                                               $ 222,444 S  228,167 Current liabilities:
Investments available for sale at fairvalue Interest receivable Cash and cash equivalents Accounts receivable..
Long-tenn debt due within one year                                                             6,035 Accrued interest                                                                              5,994     5,994 Accounts payable                                                                              5,499      4,017 Total current liabiTitics .                                                              17528      10,011 Commitments and contingencies Total liabilities                                                                      $ 239.972 $  238.178
Materials and supplies Costs recoverable from future billings to participants ASSETS 183,309 8613 191,922 36 622 155+00
~31 158 Ml 34,170 67 7 546 41,783 3~9 31,780 1995 183~
7 688 190,997 24,415 166/82 2,488 169 070 28,699 69 8 274 37,042 1,891 3,679 Unrealized loss (gain) on investments in funds availablc for sale Unamortized debt expenses, less accumulated amortization of$942 and $628 Total assets 239,972 (28) 3,461 238,178 Long-term debt Current liabilities:
Long-tenn debt due withinone year Accrued interest Accounts payable Total current liabiTitics.
Commitments and contingencies Total liabilities LIABILITIES 222,444 6,035 5,994 5,499 17528 239.972 S
228,167 5,994 4,017 10,011 238.178


SOLITHERN CALIFORNIA PUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS fin Ohuusan)ts) year Ended june A, 1996                            1995 Operating revenue:
SOLITHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS fin Ohuusan)ts)
Sales of electric energy   .                                                                  $  50 117 Operating expenses:
Operating revenue:
Other operations                                                                                       314                              316 Maintenance                                                                                         35,760                          38511 Depreciation .                                                                                        9,095                          9,095 Decommissioning                                                                                       3 113                          3 112 Total operating expenses                                                                       48 282                          51 534 Operating income (loss)                                                                              1,835                            (180)
Sales ofelectric energy Operating expenses:
Investment income Income before debt expense                                                                       3,897                          1/70I Debt cxpcnsc                                                                                         1 614                        ~1595 Costs recoverable statemaine.
Other operations Maintenance Depreciation Decommissioning Total operating expenses Operating income (loss)
from future billings to participants                                       (S     8,717)                   ($   13894)
Investment income Income before debt expense Debt cxpcnsc Costs recoverable from future billings to participants 1996 50 117 314 35,760 9,095 3 113 48 282 1,835 3,897 1
614 (S
8,717) year Ended june A, 1995 316 38511 9,095 3 112 51 534 (180) 1/70I
~1595
($
13894)
Sa notes tofinane2a!
Sa notes tofinane2a!
statemaine.


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SAN JUAN PROJECT
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT
                                                                                    ~)
'SUPPLEMENTAL STATEMENT OF CASH FLOWS fin~)
                                                        'SUPPLEMENTAL STATEMENT OF CASH FLOWS fin Yem Ended June 30, 1995 Cash flows from operating activities:
Cash flows from operating activities:
Costs recoverable from future billings to participants                                       ($  8,717)                    ($    10,894)
Costs recoverable from future billings to participants Adjustments to arrive at net cash provided by (used for) operating activitics-Depreciation Decommissioning costs Amortization of debt costs..
Adjustments to arrive at net cash provided by (used for) operating activitics-Depreciation .                                                                                  9,095                            9,095 Decommissioning costs                                                                           3113                            3112 Amortization of debt costs   ..                                                                   626                              610 Changes in assets and liabilities:
Changes in assets and liabilities:
Interest receivable                                                                               2                              (59)
Interest receivable Accounts receivable Materials and supplies Other assets Accounts payable Net cash provided by operating activities Cash flows from inv4csting activities:
Accounts receivable                                                                             946                            (669)
Payments forconstruction offacility Purchases ofinvestments Proceeds from sale/maturity ofinvestments Net cash used forinvesting activities Nct decrease in cash and cash equivalents...
Materials and supplies                                                                         110                            1/40 Other assets                                                                                     56                                81 Accounts payable                                                                             1482                              711 Net cash provided by operating activities                                                 6 713                      ~327 Cash flows from inv4csting activities:
Cash and cash equivalents at beginning ofyear Cash and cash equivalents at cnd ofyear Supplemental disclosure ofcash flowinformation:
Payments for construction of facility                                                            (1,938)                          (1,861)
Cash paid during the year for interest (net of amount capitaliizcd)
Purchases of investments                                                                        (14370)                          (12749)
($
Proceeds from sale/maturity of investments                                                        8 S67                          19 918 Net cash used for investing activities   .                                                  441                            3 692 Nct decrease in cash and cash equivalents...                                                         (728)                            (365)
8,717) 9,095 3113 626 2
Cash and cash equivalents at beginning     of year                                                  8 274                            8639 Cash and cash equivalents at cnd   of year                                                    $  7~6                        8    8.274 Supplemental disclosure of cash flow information:
946 110 56 1482 6 713 (1,938)
Cash paid during the year for interest (net of amount capitaliizcd)                           $ 11,988                     3   11.988
(14370) 8 S67 441 (728) 8 274 7~6 11,988 Yem Ended June 30, 1995
($
10,894) 9,095 3112 610 (59)
(669) 1/40 81 711
~327 (1,861)
(12749) 19 918 3 692 (365) 8639 8
8.274 3
11.988


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FOR THE YEAR ENDED JUNE 300 1996 f178~)
                                                                                              ~)
Mance at June 30, 1995 Debt Drt7t $57$48te Stroke Rsme 44$27477r 44828477r 1 &93 112 5,994 18,025 11 179 36943 Additions:
REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED JUNE 300 1996 f178 Debt             Drt7t $ 57$ 48te Stroke           Rsme 44$ 27477r       44828477r Mance at June 30, 1995                                        $          -    $    1 &93     $        -    $      112   $        5,994   $      18,025     $  11 179     $    36943 Additions:
Investment earnings Distribution ofinvestment earnings Discount on investment purchases...
Investment earnings                                                 32                54                            12                54          1,061          537            1,750 Distribution of investment earnings                             1,945              (64)                                            (168)        (1,061)        (652)
Revenue from power sales Distribution of revenues Refund from Cenhuy IbwcrCorporation 32 54 1,945 (64) 4 10 S2933 (54,914) 38,249 12 54 1,061 (168)
Discount on investment purchases...                                   4              10                                              114                          112              242 Revenue from power sales                                       S2933                                                                                                          S2,933 Distribution of revenues                                       (54,914)         38,249                                           14+15                           2,145 Refund from Cenhuy Ibwcr Corporation                                                                                                                                                400 Total                                                                       38 249                             414   ~14         15                   ~142 ~55                 25 Deductions:
(1,061) 114 14+15 537 (652) 112 2,145 1,750 242 S2,933 400 Total 38 249 414
Payment for construction    ..                                                   1,938                                                                                          1,938 Administmtive <<xpcnditures                                                     36,691                                                                                          36,691 Interest paid .                                                                                                                  11 988                                        11 983 Total                                                                       38 629                                          11 988                                        50617 Mance at June 30, 1996                                                         $    1,253     $        5   $      526   $        8621   $      18025     $  13021     $    41651 1hts schedule surnmarizcs the receipts and   ~cuts         in funds rc4luired under the Bond Indenture and has been prepared from the trust statements.lhe balances in the funds consist of cash and investments at original cost. 1hese balances do not indudc accrued intent receivable of $ 67 and $ 69 at June 30, 1996 and 1995, respectively, nor do they indude total amortized net investment discount of $ 69 and $ 2 at June 30, 1996 and 1995, respectively. These balances do not indude unrealized loss (gain) on Investments in funds available for sale of
~14 15
$ 4 and ($28) at June 30, 1996 and 1995, respectively.
~142
~55 25 Deductions:
Payment forconstruction..
Administmtive <<xpcnditures Interest paid Total Mance at June 30, 1996 1,938 36,691 38 629 1,253 11 988 11 988 1,938 36,691 11 983 50617 5
526 8621 18025 13021 41651 1hts schedule surnmarizcs the receipts and ~cuts in funds rc4luired under the Bond Indenture and has been prepared from the trust statements.lhe balances in the funds consist of cash and investments at original cost. 1hese balances do not indudc accrued intent receivable of $67 and $69 at June 30, 1996 and 1995, respectively, nor do they indude total amortized net investment discount of$69 and $2 at June 30, 1996 and 1995, respectively. These balances do not indude unrealized loss (gain) on Investments in funds available for sale of
$4 and ($28) at June 30, 1996 and 1995, respectively.


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SOUTHERN CALIF<ORNIA PUBLIC POWER AUTHORITY REPORT AND FINANCIALSTATEMENTS AND SUPPLE<MENTAL FINANCIALINFORMATION JUNE 80, 1996 AND 1998
SOUTHERN CALIF<ORNIA PUBLIC POWER AUTHORITY REPORT AND FINANCIALSTATEMENTS AND SUPPLE<MENTAL FINANCIALINFORMATION JUNE 80, 1996 AND 1998


I 400 South Hope Street     Telephone 213 236 3000 Los Angetes, CA 90071.2889 Price Paterhouse Lsz REPORT OF INDEPENDENT ACCOUNTANTS September 10, 1996 To the Board of Directors of the Southern California Public Power Authority In our opinion, the accompanying combined balance sheet and the related combined statements of operations and of cash flows present fairly, in all material respects, the financial position of the Southern California Public Power Authority (Authority) at June 30, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Authority's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above.
I
In our opinion, the accompanying separate balance sheets and the related separate statements of cash flows of the Authority's Palo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project, Multiple Project Fund and San Juan Project and the separate statements of operations of the Authority's Palo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project, and San Juan Project present fairly, in all material respects, the financial position of each of the Projects at June 30, 1996, and their cash flows, and the results of operations of the Authority's Palo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project and San Juan Project for the year then ended in conformity with generally accepted accounting principles. These'inancial statements are the responsibility of the Authority's management; our responsibility is to express an opinion on these financial statements based on our audits. We, conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, An audit includes examining, on a test basis, evidence
 
400 South Hope Street Telephone 213 236 3000 Los Angetes, CA 90071.2889 Price Paterhouse Lsz REPORT OF INDEPENDENT ACCOUNTANTS September 10, 1996 To the Board of Directors of the Southern California Public Power Authority In our opinion, the accompanying combined balance sheet and the related combined statements of operations and of cash flows present fairly, in all material respects, the financial position of the Southern California Public Power Authority (Authority) at June 30, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.
These financial statements are the responsibility of the Authority's management; our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.
We believe that our audits provide a reasonable basis for the opinion expressed above.
In our opinion, the accompanying separate balance sheets and the related separate statements of cash flows of the Authority's Palo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project, Multiple Project Fund and San Juan Project and the separate statements of operations of the Authority's Palo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project, and San Juan Project present fairly, in all material respects, the financial position of each of the Projects at June 30, 1996, and their cash flows, and the results of operations of the Authority's Palo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project and San Juan Project for the year then ended in conformity with generally accepted accounting principles.
These'inancial statements are the responsibility of the Authority's management; our responsibility is to express an opinion on these financial statements based on our audits.
We, conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, An audit includes examining, on a test basis, evidence


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The Board of Directors September 10, 1996 Page 2 supporting the amounts and disclosures in the financial statements, assessing the accounting   principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for the opinion expressed above.
The Board of Directors September 10, 1996 Page 2 supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental financial information, as listed on the accompanying index, is presented for purposes of additional analysis and is not a required part of the basic financial statements. This information is the responsibility of the Authority's management. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.
We believe that our audits provide a reasonable basis for the opinion expressed above.
Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.
The supplemental financial information, as listed on the accompanying index, is presented for purposes of additional analysis and is not a required part of the basic financial statements.
This information is the responsibility of the Authority's management.
Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.


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SOIyfHERN CALIFORNIA PUBLIC POWER AUTHORITY CotfBI   DB    A (in thousands) une 30 Em'outhern Palo      Transmission     Hoover         hfead-       hfead-       hfultiple     San                   June 30, Verde          System        Uprating      Phoenix      Adelanto      Project      Juan                     1995
SOIyfHERN CALIFORNIAPUBLIC POWER AUTHORITY CotfBI D B A
                                                              ~&oaf            Emmy                        JMaL        ~id                      ~t~a Utility plant:
(in thousands)
Production                                 $  613,608                                               $ 171,068                  S 183,309  $  967,985  $    795,080 Transmission Ceileral                                  ~~5 14,146  S
Palo Verde Em'outhern Transmission System
                                                              ~88 674,606
~&oaf Hoover Uprating Emmy une 30 hfead-Phoenix hfead-hfultiple Adelanto Project JMaL ~id San June 30, Juan 1995
                                                                                          ~7
~t~a Utilityplant:
                                                                                          $   48/07              164 8~ ~228't
Production Transmission Ceileral 613,608 14,146 S
                                                                                                                                                    '?37,223
674,606
                                                                                                                                                              ~2 1K689,447 Less   - Accumulated depreciation 630,323
~~5
                                                ~9dhU, 380@02
~88 48/07
                                                              ~   693,499 JRI 499,372 50,278 49,432
~7
                                                                                                          ~u171,232 169,977 191,922
$ 171,068 164 S 183,309 8~
                                                                                                                                    ~KfbIR 155,300 1,737,254
967,985 795,080
                                                                                                                                                ~2JUl 1,254,383 1,513,682 1,09f,994 Construction work in progress
'?37,223 689,447
  'Nuclear fuel, at amortized cost             ~225 9/03                                     3,116                                     3,501
~228't ~2 1K Less - Accumulated depreciation 630,323 693,499
                                                                                                                                                ~iu  16,120     206,573
~9dhU, ~JRI 50,278 171,232
            'Net utility plant                   403 030    ~92~37                                                                ~880        ~uz773      ~34        83 Special funds:
~u 191,922 1,737,254 1,513,682
~KfbIR ~2JUl Construction work in progress
'Nuclear fuel, at amortized cost 380@02 9/03
~225 499,372 49,432 3,116 169,977 155,300 1,254,383 1,09f,994 3,501 16,120 206,573
~iu
'Net utility plant Special funds:
Available for sale at fair value (Note 2):
Available for sale at fair value (Note 2):
Decommissioning fund                       33,474                                                                                            33,474       24403
Decommissioning fund
        'Investments                              115,746       102,842   S   9,628         21491         62462     S 250,888       34,170     597,427       682,442 Escrow account - Crossover series                        343,898                                                                            343,898       343,921 Advance to Intemountaln Power Agency                            19+50                                                                             19+50        19,550
'Investments Escrow account - Crossover series Advance to Intemountaln Power Agency
  <<Advances for capacity and energy, net                                        10,119                                                                10,119       11,903 Interest receivable                              1,512          2,169            6            811         2485           9/20           67       16,100       16~1 Cash and cash equivalents                  ~7879              90 374        I 2u                                                ~725 ~73 XK ~9hlQ
<<Advances for capacity and energy, net Interest receivable Cash and cash equivalents 33,474 115,746 1,512
                                              ~53u               438783       21730         73980     ~2a4<<         MOtu25       ~LJ>u ~7~3! ~26u Accounts receivable                                   738          2,687          19        1,750          4,741        (6,402)        9IS        4,478        5,272 hlaterials and supplies                             9,240                                                                              3/69        12,809      13,297 Costs receive from future billings. to participants                       20I,9IS        203,787        7+38          1@9h                                    313780      453,827      411,031
~7879 102,842 S
'Unrealized loss on investments in funds available for sale                                   456          2,865                                        28                                  3,365        2@35
9,628 343,898 19+50 10,119 2,169 6
,Prepaid construction costs                                                                                                                                         59536 Prepaid expenses                                                                                   26 Unamortized debt expenses, less accumulated amortization of $ 132,265 and $ 127,197 in 1996 and 1995                                           ~07 ~888                     ~28       2                     3 090 ~4348 ~42             508 t J 01~73     ~1431   741 ~32 617 ~89           595   aata~660       ~253 706     ~23     7g ~3366   0 3 t 3 ~00 73 Long-turn debt                               $  981,155   5 1,034,757   $  30,981   $    86,417     $ 268,005     S 242,786   3 222,444   5 2,866,545 $ 2,894,471 Subordinate Refunding Crossover Series                                             347@88                                                                            347,388      347,782 Ariiitrage rebate payable                                                                                                                                             77 Defencd credits                                                                                                             2,664                     2,664       1,141 Cuncnt liabilities:
90 374 I 2u 403 030
Long. tenn debt due within one year
~92~37
  'Accrued interest Accounts payable and accrued expenses Total cuncnt liabilities
~880
                                              ~333
~uz773 ~34 83 24403 682,442 343,921 19,550 11,903 16~1
                                              ~suit 25,690 24435
~9hlQ 33,474 21491 62462 S 250,888 34,170 597,427 343,898 19+50 10,119 811 2485 9/20 67 16,100
                                                              ~3
~725 ~73 XK
                                                              ~49 10,845 38,436 06
~53u 438783 21730 73980
                                                                            ~    1,085 489 I &16
~2a4<<
                                                                                          ~90  2,588
MOtu25 ~LJ>u ~7~3! ~26u Accounts receivable hlaterials and supplies Costs receive from future billings.to participants
                                                                                          ~78 ~l~
'Unrealized loss on investments in funds available for sale
7,884 7110 8,256
,Prepaid construction costs Prepaid expenses Unamortized debt expenses, less accumulated amortization of $132,265 and $127,197 in 1996 and 1995 738 9,240 20I,9IS 456 2,687 19 1,750 203,787 7+38 1@9h 4,741 2,865 (6,402) 9IS 3/69 313780 4,478 12,809 5,272 13,297 453,827 411,031 28 3,365 2@35 59536 26
                                                                                                                        ~852 ~728 6,035 5,994
~07 ~888
                                                                                                                                    ~22 ~'~7
~28 2
                                                                                                                                                ~4~
3 090 ~4348
43,655 88,182
~42 508 t J 01~73
                                                                                                                                                              ~z22!2 38,790 95,288 23 183 Comiuitmcnts and contingencies
~1431 741
                                              ~II'~13       ~43~74         ~32 6   7   ~IIO 505        ~276 669     ~25     706 ~23   ~07 ~~3~03 ~!I 400 73 The accompanying notes arc an inteyal part of these {inancial statements.
~32 617 ~89 595 aata~660
~253 706
~23 7g
~3366 0 3 t 3 ~00 73 Long-turn debt 981,155 5 1,034,757 30,981 86,417
$ 268,005 S 242,786 3 222,444 5 2,866,545
$ 2,894,471 Subordinate Refunding Crossover Series Ariiitrage rebate payable Defencd credits 347@88 2,664 347,388 2,664 347,782 77 1,141 Cuncnt liabilities:
Long.tenn debt due within one year
'Accrued interest Accounts payable and accrued expenses Total cuncnt liabilities 25,690 10,845 1,085 6,035 43,655 38,790 24435 38,436 489 2,588 7,884 8,256 5,994 88,182 95,288
~333 ~3 ~ ~90 7110
~22 ~'~7 23 183
~suit ~49 06 I &16 ~78 ~l~ ~852 ~728 ~4~
~z22!2 Comiuitmcnts and contingencies
~II'~13
~43~74
~32 6 7 ~IIO505
~276 669
~25 706
~23
~07
~~3~03
~!I400 73 The accompanying notes arc an inteyal part of these {inancial statements.
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY COMBINED STATEMENT OF OPFRATIONS (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY COMBINED STATEMENT OF OPFRATIONS (In thousands)
Year Ended     une 30 1996 Southern Palo     Transmission   Hoover         Mead-          Mead-                              Year Ended Verde       System     Uprating       Phoenix        Adelanto          San Juan            June 30,
Year Ended une 30 1996 Southern Palo Transmission Hoover Verde System Uprating
                                  ~Pro'ect     ~Pro'ect     ~Pro eat       ~Pro'act       ~Pro'ect         ~Pro ect     Total     1995 Operating revenues:
~Pro'ect
Sales of electric energy       S 135,464                   S 3,349                                       S   50,117 S 188,930 S 183,603 Sales of transmission services                  85 297                          226     g     172                   85 695     91 250 Total operating revenues     135 464         85 297       3 349             226             172         50 117   274 625   274 853 Operating cxpcnses:
~Pro'ect
Amortization of nuclear fuel       7,949                                                                                 7,949      8,150 Other operations                  25,815        10,192       2,200             213            145            314    38,879    39,873 Maintenance                        6,317          5,236                           13              27          35,760    47,353    50,834 Depreciation                      18,425        20,329                           342           1,132           9,095   49,323     47,975 Decommissioning                  12 497                                                                        3 113    15 610    16 513 Total operating expenses     71 003         35 757       2 200             568           1 304         48 282   159 114   163 345 Operating income (loss)           64,461         49,540       1,149             (342)         (1,132)         1,835   115,511   111,508 Investment income                  10 886        28 993          874              410          1 174           2 062   44 399     23 884 Income before debt expense    75,347        78,533        2,023              68                          3,897  159,910    135,392 Debt expense                       82 777         99 166       2 262           1 462           4 425         12 614   202 706   174 140 Costs recoverable from future billings to participants       ~7430         ~20 633       ~239         ~1394           ~4383           ~8717     ~42   796 ~38   748 The accompanying notes are an integral part of these financial statements.
~Pro eat Mead-Phoenix
~Pro'act Mead-Adelanto San Juan
~Pro'ect
~Pro ect Total Year Ended June 30, 1995 Operating revenues:
Sales of electric energy Sales of transmission services S 135,464 85 297 S
3,349 S
50,117 S 188,930 S 183,603 226 g
172 85 695 91 250 Total operating revenues 135 464 85 297 3 349 226 172 50 117 274 625 274 853 Operating cxpcnses:
Amortization of nuclear fuel Other operations Maintenance Depreciation Decommissioning 7,949 25,815 6,317 18,425 12 497 10,192 2,200 5,236 20,329 213 13 342 145 27 1,132 314 35,760 9,095 3 113 7,949 38,879 47,353 49,323 15 610 8,150 39,873 50,834 47,975 16 513 Total operating expenses 71 003 35 757 2 200 568 1 304 48 282 159 114 163 345 Operating income (loss)
Investment income Income before debt expense 64,461 49,540 75,347 78,533 10 886 28 993 1,149 874 2,023 (342) 410 68 (1,132) 1,835 115,511 3,897 159,910 1 174 2 062 44 399 111,508 23 884 135,392 Debt expense 82 777 99 166 2 262 1 462 4 425 12 614 202 706 174 140 Costs recoverable from future billings to participants
~7430
~20 633
~239
~1394
~4383
~8717
~42 796
~38 748 The accompanying notes are an integral part of these financial statements.
4
4


Line 795: Line 1,414:
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY 8             M                       W (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY 8
Year Ended Palo      Southern        Hoover        hfead-      hfead-      hfultiplc        San                    June 30, Verde    Transmission    Uprating      Phoenix      Adelanto      Project        Juan                      1995 205991    2252052272991    &0555>        U22j2a      U4225a                                                    Total Cash flows from operating activities:
M W
Costs recoverable from I'uture billings to participants                                   (S     7,430) (S 20,633)   (S     239) (S   1,394) (S   4,383)                 (S  8,717)  (S 42,796)    (S  38,748)
(In thousands)
Adjustments to arrive at net cash provided by (used for) operating activities-Depreciation                                        18,425     20/29                          342        1,132                      9,095        49,323        47,975 Decommissioning                                    12,497                                                                           3,113          15,610        16,513 Amortization of nuclear fuel                        7,949                                                                                            7,949         8,150 Amortization of debt costs                        24,428       11,739         294           167         482                         626        379736        29,050 Write-off of construction work in progress costs                                                          1,313                                                                               1,313 Changes in assets and liabilities:
Cash flows from operating activities:
Decommissioning I'und                              (8,971)                                                                                         (8,971)       (1,297)
Costs recoverable from I'uture billings to participants Adjustments to arrive at net cash provided by (used for) operating activities-Depreciation Decommissioning Amortization of nuclear fuel Amortization of debt costs Write-offof construction work in progress costs Changes in assets and liabilities:
Interest receivable                                  (289)       (362)         20           405         691                            2          467            437 Accounts receivable                                    174        (218)         (19)         213          (72)                       946          1,024          1,402
Decommissioning I'und Interest receivable Accounts receivable hlaterials and supplies
                                                                                  ~ ~jd hlaterials and supplies                                378                                                                              110            488          2,069
'Other assets Accrued interest Accounts payablc and accrued expenses Net cash provided by operating activities (S
        'Other assets                                            55                                1,977        3,467                           56          5,555           117 Accrued interest                                    (6,150)       (943)         (11)                         (I)                                   (7,105)       10,036 Accounts payablc and accrued expenses        ~6823 ~2653                                                                                    ~56OQ          ~QK Net cash provided by operating activities                                            ~2IZ                9S  ~266 ~06 Cash flows from investing activiticst Interest received on investments                                                                                     S  18,380                        18@80          34,037 Arbitrage payment                                                                                                                                                     (3,757)
7,430)
Pa>ments for construction of facilities             (10,892)                               (13,208)     (15,652)                     (1,938)       (41,690)      (104,088)
(S 20,633)
Purchases of investments                          (154,685)     (154,904)     (22,665)       (3,264)      (9,184)     (1,868)       (14@70)     (360,940)       (230,693)
(S 239)
Proceeds from sale/maturity of investments          182,309      195,593      20,705        14,474      23,000                        8,867      444,948        299,265 Advances for capacity and energy, net Reimbursement from WAPA 19784                                                                  1,784
(S 1,394)
                                                                                                                                                                      ~1     1,415 Net cash provided by (used for) investing activities                           ~473               40 659         Qyyjj   ~zjjy ~22j ~hjz ~yddjj                                 ~62       0   ~37         0 Cash flows from capital and related financing activities:
(S 4,383) 18,425 12,497 7,949 24,428 20/29 342 1,132 11,739 294 167 482 1,313 (8,971)
Payments of interest on long-term debt                                                                                 (16512)                      (16,512)      (37,092)
(289) 174 378 55 (6,150)
Proceeds from sale of bonds                         229,483                                                                                          229,483 Papncnt for defeasance of revenue bonds           (233,632)                                                                                        (233,632)          (5,798)
~6823 (362)
Repapnent of principal on long. term debt                         (14325)
(218) 20 (19) 405 213 1,977 (943)
    'Pa>ment for bond issue costs                   ~403 (23,855)                     (610)
(11)
                                                                                                                                                      ~484 (38,790)
~2653 ~ ~jd 691 (72) 3,467 (I)
                                                                                                                                                                      ~40j (36,900)
~2IZ 9S ~266 ~06 Palo Southern Hoover hfead-hfead-hfultiplc Verde Transmission Uprating Phoenix Adelanto Project 205991 2252052272991
Net cash used for capital and related financing activities                                                                                     M2R)               -      UkhRS ~7dQS Net increase (decrease)     in cash and cash equivalents                                     18,525       35,646         (748)         268           225                       (728)       53,188         (4,746)
&0555>
Cash and cash equivalents at beginning of year                        ~K@II       ~~ ~K ~12                                   -        ~I~           ~ME ~~3k C h       d     h~141     I 0   d fy           ~67II7         hZ0~%S       j~t7         ~540         ~4507         t   .        ~7546         5 173 798     ~120     610 Supplemental disclosure oi'ash flow inforrnationt Cash paid during the year for interest (net of amount capitalized)                        jy   64 49z   ~00 37II     ~ja70       t, s,                       ~6us ~II 903 ~87 347 ~00 700 The accompanying notes arc an Integral part of these flnancial statements.
U22j2a U4225a Year Ended San June 30, Juan 1995 Total 9,095 3,113 626 49,323 15,610 7,949 379736 47,975 16,513 8,150 29,050 1,313 2
946 110 56 (8,971) 467 1,024 488 5,555 (7,105)
~56OQ (1,297) 437 1,402 2,069 117 10,036
~QK (S
8,717)
(S 42,796)
(S 38,748)
Cash flows from investing activiticst Interest received on investments Arbitrage payment Pa>ments for construction of facilities Purchases of investments Proceeds from sale/maturity of investments Advances for capacity and energy, net Reimbursement from WAPA (10,892)
(154,685)
(154,904) 182,309 195,593 (22,665) 20,705 19784 (13,208)
(3,264) 14,474 (15,652)
(9,184) 23,000 S
18,380 (1,938)
(1,868)
(14@70) 8,867 18@80 (41,690)
(360,940) 444,948 1,784 34,037 (3,757)
(104,088)
(230,693) 299,265 1,415
~1 Net cash provided by (used for) investing activities
~473 40 659 Qyyjj ~zjjy ~22j ~hjz ~yddjj ~62 0 ~37 0
Cash flows from capital and related financing activities:
Payments of interest on long-term debt Proceeds from sale of bonds Papncnt for defeasance of revenue bonds Repapnent of principal on long.term debt
'Pa>ment for bond issue costs 229,483 (233,632)
(23,855)
~403 (14325)
(610)
(16512)
(16,512)
(37,092) 229,483 (233,632)
(5,798)
(38,790)
(36,900)
~484 ~40j Net cash used for capital and related financing activities M2R)
UkhRS ~7dQS Net increase (decrease) in cash and cash equivalents 18,525 35,646 (748) 268 225 (728) 53,188 (4,746)
~K@II ~~ ~K ~12
~I~ ~ME ~~3k Cash and cash equivalents at beginning of year C
h d
h~141 I 0 d fy
~67II7 Supplemental disclosure oi'ash flow inforrnationt Cash paid during the year for interest (net of amount capitalized) hZ0~%S j~t7 ~540
~4507 t
~7546 5 173 798
~120 610 jy 64 49z
~00 37II ~ja70 t, s,
~6us ~II 903 ~87 347 ~00 700 The accompanying notes arc an Integral part of these flnancial statements.
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY NOTES TO I INANCIALSTATEMENTS NOTE     1 - ORGANIZATION AND PURPOSE:
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY NOTES TO I INANCIALSTATEMENTS NOTE 1 - ORGANIZATIONAND PURPOSE:
Southern California Public Power Authority (Authority), a public entity organized under the laws of the State of California, was formed by a Joint Powers Agreement dated as of November 1, 1980 pursuant to the Joint Exercise of Powers Act of the State of California. The Authority's participant membership consists of ten Southern California cities and one public district of the State of California. The Authority was formed for the purpose of planning, financing, developing, acquiring, constructing, operating and maintaining projects for the generation and transmission of electric energy for sale to its participants. The Joint Powers Agreement has a term of fifty years.
Southern California Public Power Authority (Authority), a public entity organized under the laws of the State of California, was formed by a Joint Powers Agreement dated as of November 1, 1980 pursuant to the Joint Exercise of Powers Act of the State of California.
The Authority's participant membership consists of ten Southern California cities and one public district of the State of California. The Authority was formed for the purpose of planning, financing, developing, acquiring, constructing, operating and maintaining projects for the generation and transmission of electric energy for sale to its participants.
The Joint Powers Agreement has a term of fifty years.
The members have the following participation percentages in the Authority's interest in the projects at June 30, 1996 and 1995:
The members have the following participation percentages in the Authority's interest in the projects at June 30, 1996 and 1995:
Southern Palo   Transmission Hoover       Mead-     Mead-       San
~Partici ants Southern Palo Transmission Hoover Mead-Mead-San V
~Partici ants                      V s         s         II     i     h   i   Ad]
s s
City of Los Angeles               67.0%       59.5%                  24.8%    35.7%
II i
City of Anaheim                                17.6       42.6%        24.2      13.5 City of Riverside                    5.4       10.2       31.9         4.0      13.5 Imperial Irrigation District        6.5                                                    51.0%
h i
City of Vernon                      4.9 City of Azusa                        1.0                     4.2        1.0       2.2      14.7 City of Banning                      1.0                    2.1        1.0      1.3        9.8 City of Colton                      1.0                    3.2         1.0      2.6     14.7 City of Burbank                      4.4          4.5     16.0        15.4      11.5 City of Glendale                    4,,4,        2.3                  14.8     11.1        9.8 City of Pasadena                    4,.4.       5.9                  13.8      8.6
Ad]
                                              ~l.   %   ~1,   %   ~1 The members do not currently participate in the Multiple Project Fund.
City of Los Angeles City of Anaheim City of Riverside Imperial Irrigation District City of Vernon City of Azusa City of Banning City of Colton City of Burbank City of Glendale City of Pasadena 6.5 4.9 1.0 1.0 1.0 4.4 4,,4, 4,.4.
4.5 2.3 5.9 67.0%
59.5%
17.6 5.4 10.2 42.6%
31.9 4.2 2.1 3.2 16.0 51.0%
1.0 1.0 1.0 15.4 14.8 13.8 14.7 9.8 14.7 2.2 1.3 2.6 11.5 11.1 9.8 8.6 24.8%
35.7%
24.2 13.5 4.0 13.5
~l. %
~1, %
~1 The members do not currently participate in the Multiple Project Fund.
Mead-Phoenix participation reflects three ownership components (see below).
Mead-Phoenix participation reflects three ownership components (see below).
Palo Verde Pro'ect The Authority, pursuant to an assignment agreement dated as of August 14, 1981 with the Salt River Project (Salt River), purchased a 5.91% interest in the Palo Verde Nuclear Generating Station (PVNGS), a 3,810 megawatt nuclear-fueled generating station near Phoenix, Arizona, and a 6.55% share of the right to use certain portions of the Arizona Nuclear Power Project Valley Transmission System (collectively, the Palo Verde Project).
Palo Verde Pro'ect The Authority, pursuant to an assignment agreement dated as of August 14, 1981 with the Salt River Project (Salt River), purchased a 5.91% interest in the Palo Verde Nuclear Generating Station (PVNGS), a 3,810 megawatt nuclear-fueled generating station near Phoenix, Arizona, and a 6.55% share of the right to use certain portions of the Arizona Nuclear Power Project Valley Transmission System (collectively, the Palo Verde Project).
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NOTE 1: (Continued)
NOTE 1: (Continued)
As of July 1, 1981, ten participants had entered into power sales contracts with the Authority to purchase the Authority's share of PVNGS capacity and energy. Units 1, 2 and 3 of the Palo Verde Project began commercial operations in January 1986, September 1986, and January 1988, respectively.
As of July 1, 1981, ten participants had entered into power sales contracts with the Authority to purchase the Authority's share of PVNGS capacity and energy.
Units 1, 2 and 3 of the Palo Verde Project began commercial operations in January 1986, September 1986, and January 1988, respectively.
Southern Transmission S stem Pro'ect The Authority, pursuant to an agreement dated as of May 1, 1983 with the Intermountain Power Agency (IPA), has made payments-in-aid of construction to IPA to defray all the costs of acquisition and construction of the Southern Transmission System Project (STS), which provides for the transmission of energy from the Intermountain Generating Station in Utah to Southern California. The Authority entered into an agreement also dated as of May 1, 1983 with six of its participants pursuant to which each member assigned its entitlement to capacity of STS to the Authority in return for the Authority's agreement to make payments-in-aid of construction to IPA.
Southern Transmission S stem Pro'ect The Authority, pursuant to an agreement dated as of May 1, 1983 with the Intermountain Power Agency (IPA), has made payments-in-aid of construction to IPA to defray all the costs of acquisition and construction of the Southern Transmission System Project (STS), which provides for the transmission of energy from the Intermountain Generating Station in Utah to Southern California. The Authority entered into an agreement also dated as of May 1, 1983 with six of its participants pursuant to which each member assigned its entitlement to capacity of STS to the Authority in return for the Authority's agreement to make payments-in-aid of construction to IPA.
STS commenced commercial operations in July 1986. The Department of Water and Power of the City of Los Angeles (LADWP), a member of the Authority, serves as project manager and operating agent of the Intermountain Power Project (IPP).
STS commenced commercial operations in July 1986.
Hoover U ratin     Pro'ect The Authority and six participants entered into an agreement dated as of March 1, 1986, pursuant to which each participant assigned its entitlement to capacity and associated firm energy to the Authority in return for the Authority's agreement to make advance payments to the United States Bureau of Reclamation (USBR) on behalf of such participants. The USBR has declared that the Project was substantially complete as of September 30, 1995 with minor work scheduled to be completed in the spring of 1997. The Authority has an 18.68% interest in the contingent capacity of the Hoover Uprating Project (HU). All seventeen "uprated" generators of the HU have commenced commercial operations.
The Department of Water and Power of the City of Los Angeles (LADWP), a member of the Authority, serves as project manager and operating agent of the Intermountain Power Project (IPP).
Mead-Phoenix Pro'ect The Authority entered into an agreement dated as of December 17, 1991 to acquire an interest in the Mead-Phoenix Project (MP), a transmission line extending between the Westwing substation in Arizona and the Marketplace substation in Nevada. The agreement provides the Authority with an 18.31% interest in the Westwing-Mead project component, a 17.76% interest in the Mead Substation project component and a 22.41% interest in the Mead-Marketplace project component.
Hoover U ratin Pro'ect The Authority and six participants entered into an agreement dated as of March 1, 1986, pursuant to which each participant assigned its entitlement to capacity and associated firm energy to the Authority in return for the Authority's agreement to make advance payments to the United States Bureau of Reclamation (USBR) on behalf of such participants.
The Authority has entered into transmission service contracts for the entire capability of its interest with nine members of the Authority on a "take or pay" basis. In addition, the Authority has administrative responsibility for accounting for the separate ownership interest in the project by Western Area Power Administration (WAPA), who is providing separate funding (872,874,000 and 858,676,000 at June 30, 1996 and 1995, respectively) for its interest. Commercial operations of MP commenced in April 1996. Funding was provided by a transfer of funds from the Multiple Project Fund (Note 4).
The USBR has declared that the Project was substantially complete as of September 30, 1995 with minor work scheduled to be completed in the spring of 1997.
The Authority has an 18.68% interest in the contingent capacity of the Hoover Uprating Project (HU). All seventeen "uprated" generators of the HU have commenced commercial operations.
Mead-Phoenix Pro'ect The Authority entered into an agreement dated as of December 17, 1991 to acquire an interest in the Mead-Phoenix Project (MP), a transmission line extending between the Westwing substation in Arizona and the Marketplace substation in Nevada.
The agreement provides the Authority with an 18.31% interest in the Westwing-Mead project component, a 17.76% interest in the Mead Substation project component and a 22.41% interest in the Mead-Marketplace project component.
The Authority has entered into transmission service contracts for the entire capability of its interest with nine members of the Authority on a "take or pay" basis.
In addition, the Authority has administrative responsibility for accounting for the separate ownership interest in the project by Western Area Power Administration (WAPA), who is providing separate funding (872,874,000 and 858,676,000 at June 30, 1996 and 1995, respectively) for its interest.
Commercial operations of MP commenced in April 1996.
Funding was provided by a transfer of funds from the Multiple Project Fund (Note 4).
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NOTE 1: (Continued)
NOTE 1: (Continued)
Mead-Adelanto Pro'ect The Authority entered into an agreement dated as of December 17, 1991 to acquire a 67.92%
Mead-Adelanto Pro'ect The Authority entered into an agreement dated as of December 17, 1991 to acquire a 67.92%
interest in the Mead-Adelanto Project (MA), a transmission linc extending between the Adelanto substation in Southern California and the Marketplace substation in Nevada. The Authority has entered into transmission service contracts for thc entire capability of its interest with nine members of the Authority on a "take or pay" basis. In addition, thc Authority has administrative responsibility for accounting for the separate ownership interest in the project by WAPA, who is providing separate funding (817,088,000 and 816,282,000 at June 30, 1996 and 1995, respectively) for its interest. Funding was provided by a transfer of funds from the Multiple Project Fund (Note 4). Commercial operations commenced in April 1996. LADWP serves as both construction manager and operations manager.
interest in the Mead-Adelanto Project (MA), a transmission linc extending between the Adelanto substation in Southern California and the Marketplace substation in Nevada.
The Authority has entered into transmission service contracts for thc entire capability of its interest with nine members of the Authority on a "take or pay" basis.
In addition, thc Authority has administrative responsibility for accounting for the separate ownership interest in the project by WAPA, who is providing separate funding (817,088,000 and 816,282,000 at June 30, 1996 and 1995, respectively) for its interest.
Funding was provided by a transfer of funds from the Multiple Project Fund (Note 4).
Commercial operations commenced in April 1996.
LADWP serves as both construction manager and operations manager.
Multi le Pro'ect Fund During fiscal year 1990, the Authority issued Multiple Project Revenue Bonds for net proceeds of approximately 8600 million to provide funds to finance costs of construction and acquisition of ownership interests or capacity rights in one or more then unspecified projects for the generation or transmission of electric energy.
Multi le Pro'ect Fund During fiscal year 1990, the Authority issued Multiple Project Revenue Bonds for net proceeds of approximately 8600 million to provide funds to finance costs of construction and acquisition of ownership interests or capacity rights in one or more then unspecified projects for the generation or transmission of electric energy.
In August 1992, the Authority's Board of Directors approved a resolution authorizing the use of certain proceeds of Multiple Project Revenue Bonds to finance t)ie Authority's ownership interests in the Mead-Phoenix and Mead-Adelanto projects. Transfers made from the Multiple Project Fund are sufficient to provide for the Authority's sharc of the estimated costs of acquisition and construction of these two projects, including reimbursement of planning, development and other related costs.
In August 1992, the Authority's Board of Directors approved a resolution authorizing the use of certain proceeds of Multiple Project Revenue Bonds to finance t)ie Authority's ownership interests in the Mead-Phoenix and Mead-Adelanto projects.
Effective July 1, 1993, the Authority purchased a 41.80% interest in Unit 3, a 488 megawatt unit and related common facilities, of the San Juan Generating Station (SJGS) from Century Power Corporation. Unit 3 is one unit of a four-unit coal-fired power generating station in New Mexico.
Transfers made from the Multiple Project Fund are sufficient to provide for the Authority's sharc of the estimated costs of acquisition and construction of these two projects, including reimbursement of planning, development and other related costs.
The Authority allocated the $ 193 million purchase price to the estimated fair value of the utility plant (8190 million) and to materials and supplies (83 million). The purchase has been financed through the issuance of approximately $ 237 million (par value) of San Juan Project Revenue Bonds. The Authority has entered into power sales contracts for thc entire capability of its interest with five members of the Authority on a "take or pay" basis.
Effective July 1, 1993, the Authority purchased a 41.80% interest in Unit 3, a 488 megawatt unit and related common facilities, of the San Juan Generating Station (SJGS) from Century Power Corporation.
Unit 3 is one unit of a four-unit coal-fired power generating station in New Mexico.
The Authority allocated the $193 million purchase price to the estimated fair value of the utility plant (8190 million) and to materials and supplies (83 million). The purchase has been financed through the issuance of approximately $237 million (par value) of San Juan Project Revenue Bonds.
The Authority has entered into power sales contracts for thc entire capability of its interest with five members of the Authority on a "take or pay" basis.
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==SUMMARY==
==SUMMARY==
Ol SIGNIFICANT ACCOUNTING POLICIES:
Ol SIGNIFICANTACCOUNTING POLICIES:
The financial statements of the Authority are presented in conformity with generally accepted accounting principles, and substantially in conformity with accounting principles prescribed by the Federal Energy Regulatory Commission and the California Public Utilities Commission. The Authority is not subject to regulation by either of these regulatory bodies.
The financial statements of the Authority are presented in conformity with generally accepted accounting principles, and substantially in conformity with accounting principles prescribed by the Federal Energy Regulatory Commission and the California Public Utilities Commission.
The financial statements represent the Authority's share in each jointly-owned project. The Authority's share of direct expenses of jointly-owned projects are included in the corresponding operating expense of the statement of operations. E<ach owner of the jointly-owned projects is required to provide their own financing.
The Authority is not subject to regulation by either of these regulatory bodies.
~Utilit Plant The Authority's share of all expenditures, including general administrative and other overhead expenses, payments-in-aid of construction, interest net of related investment income, deferred cost amortization and the fair value of test power generated and delivered to the participants are capitalized as utility plant construction work in progress until a facility commences commercial operation.
The financial statements represent the Authority's share in each jointly-owned project.
The Authority's sharc of construction and betterment costs associated with PVNGS is included as utility plant. Depreciation expense is computed using the straight-line method based on the estimated service life of thirty-five years. Nuclear fuel is amortized and charged to expense on the basis of actual thermal energy produced relative to total thermal energy expected to be produced over the life of the fuel. Under the provisions of the Nuclear Waste Policy Act of 1982, the Authority is charged one mill per kilowatt-hour, by the federal government, on its share of electricity produced by PVNGS, and such funds will eventually be utilized by the federal government to provide for PVNGS'uclear waste disposal. The Authority records this charge as a current year expense, The Authority's share   of construction and betterment costs associated with STS, MP, MA and SJGS are included as     utility plant. Depreciation expense is computed using the straight-line method based on the     estimated service lives, principally thirty-five years for STS, MA and MP and twenty-one years   for SJGS.
The Authority's share of direct expenses of jointly-owned projects are included in the corresponding operating expense of the statement of operations.
Interest costs incurred by the MP and MA projects through the date commercial operations commenced (April 1996) are capitalized in utility plant. Total interest costs capitalized were 811,827,000 and 315,769,000 in fiscal 1996 and 1995, respectively, for the MA project and 83,881,000 and 85,175,000 in fiscal 1996 and 1995, respectively, for the MP project.
E<ach owner of the jointly-owned projects is required to provide their own financing.
Advances for Ca acit and Ener Advance payments to USBR for the uprating of the 17 generators at the Hoover Power Plant are included in advances for capacity and energy. These advances are being reduced by credits on billings to participants for energy and capacity.
~Utilit Plant The Authority's share of all expenditures, including general administrative and other overhead
: expenses, payments-in-aid of construction, interest net of related investment income, deferred cost amortization and the fair value of test power generated and delivered to the participants are capitalized as utility plant construction work in progress until a facility commences commercial operation.
The Authority's sharc of construction and betterment costs associated with PVNGS is included as utility plant.
Depreciation expense is computed using the straight-line method based on the estimated service life of thirty-five years.
Nuclear fuel is amortized and charged to expense on the basis of actual thermal energy produced relative to total thermal energy expected to be produced over the life of the fuel.
Under the provisions of the Nuclear Waste Policy Act of 1982, the Authority is charged one mill per kilowatt-hour, by the federal government, on its share of electricity produced by PVNGS, and such funds will eventually be utilized by the federal government to provide for PVNGS'uclear waste disposal.
The Authority records this charge as a current year expense, The Authority's share of construction and betterment costs associated with STS, MP, MA and SJGS are included as utility plant.
Depreciation expense is computed using the straight-line method based on the estimated service lives, principally thirty-five years for STS, MA and MP and twenty-one years for SJGS.
Interest costs incurred by the MP and MA projects through the date commercial operations commenced (April 1996) are capitalized in utility plant.
Total interest costs capitalized were 811,827,000 and 315,769,000 in fiscal 1996 and 1995, respectively, for the MA project and 83,881,000 and 85,175,000 in fiscal 1996 and 1995, respectively, for the MP project.
Advances for Ca acit and Ener Advance payments to USBR for the uprating of the 17 generators at the Hoover Power Plant are included in advances for capacity and energy.
These advances are being reduced by credits on billings to participants for energy and capacity.
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NOTE 2: (Continued)
NOTE 2: (Continued)
Nuclear Decommissionin Decommissioning of PVNGS is projected to commence subsequent to the year 2022. Based upon an updated study performed by an independent engineering firm, the Authority's share of the estimated decommissioning costs is $ 85.5 million in 1995 dollars (8390 million in 2022 dollars assuming a 6% estimated annual inflation rate). The Authority is providing for its share of the estimated future decommissioning costs over the remaining life of the nuclear power plant (25 to 27 years) through annual charges to expense which amounted to 812.5 million and 813.4 million in fiscal 1996 and 1995, respectively. The decommissioning liability is included as a component of accumulated depreciation and was 888.1 million and $ 75.6 million at June 30, 1996 and 1995, respectively.
Nuclear Decommissionin Decommissioning of PVNGS is projected to commence subsequent to the year 2022.
A Decommissioning Fund     has been established and partially funded at $ 33.9 million at June 30, 1996. The Decommissioning Fund earned interest income of 5700,000 during fiscal 1996.
Based upon an updated study performed by an independent engineering firm, the Authority's share of the estimated decommissioning costs is $85.5 million in 1995 dollars (8390 million in 2022 dollars assuming a 6% estimated annual inflation rate).
The Authority is providing for its share of the estimated future decommissioning costs over the remaining life of the nuclear power plant (25 to 27 years) through annual charges to expense which amounted to 812.5 million and 813.4 million in fiscal 1996 and 1995, respectively.
The decommissioning liability is included as a component of accumulated depreciation and was 888.1 million and $75.6 million at June 30, 1996 and 1995, respectively.
A Decommissioning Fund has been established and partially funded at $33.9 million at June 30, 1996.
The Decommissioning Fund earned interest income of 5700,000 during fiscal 1996.
Demolition and Site Reclamation Demolition and site reclamation of SJGS, which involves restoring the site to a "green" condition which existed prior to SJGS construction, is projected to commence subsequent to the year 2014.
Demolition and Site Reclamation Demolition and site reclamation of SJGS, which involves restoring the site to a "green" condition which existed prior to SJGS construction, is projected to commence subsequent to the year 2014.
Based upon a study performed by an independent engineering firm, the Authority's share of the estimated demolition and site reclamation costs is $ 18.7 million in 1992 dollars (865.3 million in 2014 dollars using a 6% estimated annual inflation rate). The Authority is providing for its share of the estimated future demolition costs over the remaining life of the power plant (18 years) through annual charges to expense of $ 3.1 million. The demolition liability is included as a component of accumulated depreciation and was 89.3 million and 86.2 million at June 30, 1996 and 1995, respectively.
Based upon a study performed by an independent engineering firm, the Authority's share of the estimated demolition and site reclamation costs is $18.7 million in 1992 dollars (865.3 million in 2014 dollars using a 6% estimated annual inflation rate).
The Authority is providing for its share of the estimated future demolition costs over the remaining life of the power plant (18 years) through annual charges to expense of $3.1 million. The demolition liability is included as a component of accumulated depreciation and was 89.3 million and 86.2 million at June 30, 1996 and 1995, respectively.
As of June 30, 1996, the Authority has not billed participants for the cost of demolition nor has it established a demolition fund.
As of June 30, 1996, the Authority has not billed participants for the cost of demolition nor has it established a demolition fund.
Unamortized Debt Ex enses Unamortized debt issue costs, including the loss on refundings, are being amortized over the terms of the respective issues and arc reported net of accumulated amortization. Total deferred loss on refundings, net of accumulated amortization, was $ 378,070,000 and $ 393,440,000 at June 30, 1996 and 1995, respectively.
Unamortized Debt Ex enses Unamortized debt issue costs, including the loss on refundings, are being amortized over the terms of the respective issues and arc reported net of accumulated amortization.
Investments Investments include United States Government and governmental agency securities and repurchase agreements which are collateralized by such securities. Additionally, the Mead-Phoenix Project, the Mead-Adelanto Project and the Multiple Project Fund's investments are comprised of an investment agreement with a financial institution earning a guaranteed rate of l
Total deferred loss on refundings, net of accumulated amortization, was $378,070,000 and $393,440,000 at June 30, 1996 and 1995, respectively.
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Investments Investments include United States Government and governmental agency securities and repurchase agreements which are collateralized by such securities.
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Additionally, the Mead-Phoenix Project, the Mead-Adelanto Project and the Multiple Project Fund's investments are comprised of an investment agreement with a financial institution earning a guaranteed rate of l
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NOTE 2: (Continued) return. The Southern Transmission System Project has debt service reserve funds associated with the 1991 and 1992 Subordinate Refunding Series Bonds invested with a financial institution under a specific investment agreement allowed under the Bond Indenture earning a guaranteed rate of return.
NOTE 2:
Investments available for sale are carried at aggregate fair value and changes in unrealized net gains or losses are recorded separately. Investments are reduced to estimated net realizable value when necessary for declines in value considered to be other than temporary. Gains and losses realized on the sale of investments are generally determined using the specific identification method. As discussed in Note 3, all of the investments are restricted as to their use.
(Continued) return.
The Southern Transmission System Project has debt service reserve funds associated with the 1991 and 1992 Subordinate Refunding Series Bonds invested with a financial institution under a specific investment agreement allowed under the Bond Indenture earning a guaranteed rate of return.
Investments available for sale are carried at aggregate fair value and changes in unrealized net gains or losses are recorded separately.
Investments are reduced to estimated net realizable value when necessary for declines in value considered to be other than temporary.
Gains and losses realized on the sale of investments are generally determined using the specific identification method.
As discussed in Note 3, all of the investments are restricted as to their use.
Cash and Cash E uivalents Cash and cash equivalents include cash and all investments with original maturities less than 90 days.
Cash and Cash E uivalents Cash and cash equivalents include cash and all investments with original maturities less than 90 days.
Revenues Revenues consist of billings to participants for the sales of electric energy and of transmission service in accordance with the participation agreements. Generally, revenues are fixed at a level to recover all operating and debt service costs over the commercial life of the property (see Note 6).
Revenues Revenues consist of billings to participants for the sales of electric energy and of transmission service in accordance with the participation agreements.
Generally, revenues are fixed at a level to recover all operating and debt service costs over the commercial life of the property (see Note 6).
Debt Ex ense Debt expense includes interest on debt and the amortization of bond discounts, debt issuance expense and loss on refunding costs.
Debt Ex ense Debt expense includes interest on debt and the amortization of bond discounts, debt issuance expense and loss on refunding costs.
Arbitra e Rebate A rebate payable to the Internal Revenue Service (IRS) results from the investment of the proceeds from the Multiple Project Revenue Bond offering in a taxable financial instrument that yields a higher rate of interest income than the cost of the associated funds. The excess of interest income over costs is payable to the IRS within five years of the date of the bond offering and each consecutive five years thereafter. The Authority made its first rebate payment of $ 3.8 million during fiscal year 1995. The next rebate payment to the IRS is due in fiscal year 2000.
Arbitra e Rebate A rebate payable to the Internal Revenue Service (IRS) results from the investment of the proceeds from the Multiple Project Revenue Bond offering in a taxable financial instrument that yields a higher rate of interest income than the cost of the associated funds.
The excess of interest income over costs is payable to the IRS within five years of the date of the bond offering and each consecutive five years thereafter.
The Authority made its first rebate payment of $3.8 million during fiscal year 1995.
The next rebate payment to the IRS is due in fiscal year 2000.
Reclassi fications Certain reclassifications have been made in the fiscal year 1995 financial statements to conform to the fiscal year 1996 presentation.
Reclassi fications Certain reclassifications have been made in the fiscal year 1995 financial statements to conform to the fiscal year 1996 presentation.


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NOTE 2: (Continued)
NOTE 2:
Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates.
(Continued)
Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.
Actual results could differ from those estimates.
NOTE 3 - SPECIAL FUNDS:
NOTE 3 - SPECIAL FUNDS:
The Bond Indentures for the six projects and the Multiple Project Fund require the following special funds to be established to account for the Authority's receipts and disbursements. The moneys and investments held in these funds are restricted in use to the purposes stipulated in the Bond Indentures. A summary of these funds follows:
The Bond Indentures for the six projects and the Multiple Project Fund require the following special funds to be established to account for the Authority's receipts and disbursements.
I'und                                           ~Pur ose Construction                       To disburse funds for the acquisition and construction of the project.
The moneys and investments held in these funds are restricted in use to the purposes stipulated in the Bond Indentures.
Debt Service                       To pay interest and principal related to the Revenue Bonds.
A summary of these funds follows:
Revenue                            To initially receive all revenues and disburse them to other funds.
I'und
Operating                          To pay operating expenses.
~Pur ose Construction To disburse funds for the acquisition and construction of the project.
Reserve and Contingency            To pay capital improvements and make up deficiencies in other funds.
Debt Service Revenue Operating Reserve and Contingency To pay interest and principal related to the Revenue Bonds.
General Reserve                     To make up any deficiencies in other funds.
To initially receive all revenues and disburse them to other funds.
Advance Payments                    To disburse funds for the cost of acquisition of capacity.
To pay operating expenses.
Proceeds Account                    To initially receive the proceeds of the sale of the Multiple Project Revenue Bonds.
To pay capital improvements and make up deficiencies in other funds.
Earnings Account                   To receive investment earnings on the Multiple Project Revenue Bonds.
General Reserve Advance Payments Proceeds Account To make up any deficiencies in other funds.
Revolving Fund                     To pay the Authority's operating expenses.
To disburse funds for the cost of acquisition of capacity.
Decommissioning Fund                To accumulate funds related to the future decommissioning of PVNGS.
To initially receive the proceeds of the sale of the Multiple Project Revenue Bonds.
Earnings Account To receive investment earnings on the Multiple Project Revenue Bonds.
Revolving Fund Decommissioning Fund To pay the Authority's operating expenses.
To accumulate funds related to the future decommissioning of PVNGS.
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NOTE 3: (Continued)
NOTE 3:
Issue Fund                           To initially receive pledged revenues associated with the applicable subordinated refunding series'ndenture of Trust and pay the related interest and principal.
(Continued)
Escrow account - Subordinate         To initially receive pledged revenues associated with Refunding Crossover Series            Component 3 of the 1993 Subordinate Refunding Crossover Series'ndenture of Trust and pay the related interest and principal.
Issue Fund To initially receive pledged revenues associated with the applicable subordinated refunding series'ndenture of Trust and pay the related interest and principal.
Acquisition Account                 To disburse funds for the acquisition and construction of the Mead-Phoenix, Mead-Adelanto and San Juan projects.
Escrow account - Subordinate Refunding Crossover Series To initially receive pledged revenues associated with Component 3 of the 1993 Subordinate Refunding Crossover Series'ndenture of Trust and pay the related interest and principal.
Acquisition Account To disburse funds for the acquisition and construction of the Mead-Phoenix, Mead-Adelanto and San Juan projects.
All of the funds listed above, except for the Revolving Fund, are held by the respective trustees.
All of the funds listed above, except for the Revolving Fund, are held by the respective trustees.
Palo Verde Pro'ect The balances of the funds required by the Bond Indenture are as follows, in thousands:
Palo Verde Pro'ect The balances of the funds required by the Bond Indenture are as follows, in thousands:
une 30 1996                       1995 Amortized       Fair     Amortized       Fair Cost         Value          Cost      Value Debt Service Fund-Debt Service Account                           8 51,386     8 51,394       8 52,457    S  52,467 Debt Service Reserve Account                      74,420      74,160       81,497      81,077 Revenue Fund                                              5             5            1          1 Operating Fund                                      20,130        20,134        31,141      31,026 Reserve and Contingency Fund                        25,924        26,107        16,776       17,075 Decommissioning Trust Fund                          34,131        33,740        24,503      24,503 Issue Fund                                          13,026       13,026        12,486      12,486 Revolving Fund                                            45            45            45          45 Contractual maturities:
une 30 1996 Amortized Fair Cost Value 1995 Amortized Fair Cost Value Debt Service Fund-Debt Service Account Debt Service Reserve Account Revenue Fund Operating Fund Reserve and Contingency Fund Decommissioning Trust Fund Issue Fund Revolving Fund 8 51,386 74,420 5
                                                    ~2~~7       ~2~           ~21 ~Q ~211~
20,130 25,924 34,131 13,026 45 8 51,394 74,160 5
Within one year                                  3 69,781     8 69,391 After one year through five years                  136,279       136,148 After five years through ten years                    3,187         3,252 After ten years                                      9 820         9 820
20,134 26,107 33,740 13,026 45 8 52,457 81,497 1
                                                    ~2] 067     $ 218~11 NOTE 3: (Continued)
31,141 16,776 24,503 12,486 45 S
52,467 81,077 1
31,026 17,075 24,503 12,486 45 Contractual maturities:
Within one year After one year through five years After five years through ten years After ten years
~2~~7 ~2~
~21 ~Q ~211~
3 69,781 8 69,391 136,279 136,148 3,187 3,252 9 820 9 820
~2]
067
$218~11 NOTE 3:
(Continued)
Southern Transmission S stem Pro'ect The balances in the special funds required by the Bond Indenture are as follows, in thousands:
Southern Transmission S stem Pro'ect The balances in the special funds required by the Bond Indenture are as follows, in thousands:
une 30 1996                   1995 Amortized     Fair     Amortized     Fair Cost      Value        Cost      Value Construction fund - Initial Facilities Account   S    235 8      235    8    223  8      223 Debt Service Fund-Debt Service Account                             21,921     21,896      31,480      31,491 Debt Service Reserve Account                      86,220    86,189       66,672      66,857 Operating Fund                                      6,015      6,007        5,987        5,987 General Reserve Fund                                4,194      4,194        9,533       9,542 Issue Fund                                          77,024    76,794      77,768      77,579 Escrow Account - Subordinate Refunding Crossover Series                                346,474   343,903     355,101     353,188 Revolving Fund                                          15         15           15         15 f~42   Z   %~2         ~4~77 Contractual maturities:
une 30 1996 Amortized Cost Fair Value 1995 Amortized Cost Fair Value Construction fund - Initial Facilities Account Debt Service Fund-Debt Service Account Debt Service Reserve Account Operating Fund General Reserve Fund Issue Fund Escrow Account - Subordinate Refunding Crossover Series Revolving Fund 21,921 86,220 6,015 4,194 77,024 21,896 86,189 6,007 4,194 76,794 31,480 66,672 5,987 9,533 77,768 31,491 66,857 5,987 9,542 77,579 346,474 343,903 355,101 353,188 15 15 15 15 f~42 Z %~2
Within one year                               8102,008 8101,975 After one year through five years                80,852     80,803 After five years through ten years                36,972     34,189 After ten years                                  322 266 322 266
~4~77 S
                                                  ~42   098 ~63')~2. 3 In addition, at June 30, 1996 and 1995, the Authority had non-interest bearing advances outstanding to IPA of 819,550,000.
235 8
235 8
223 8
223 Contractual maturities:
Within one year After one year through five years After five years through ten years After ten years 8102,008 8101,975 80,852 80,803 36,972 34,189 322 266 322 266
~42 098
~63')~2. 3 In addition, at June 30, 1996 and 1995, the Authority had non-interest bearing advances outstanding to IPA of 819,550,000.
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NOTE 3: (Continued)
NOTE 3:
(Continued)
Ifoover U ratin Pro ect The balances in the special funds required by the Bond Indenture are as follows, in thousands:
Ifoover U ratin Pro ect The balances in the special funds required by the Bond Indenture are as follows, in thousands:
une 30 1996                    1995 Amortized     I'air     Amortized      Fair Cost       Value         Cost       Value Advance Payments Fund                                   3            8  2,437    8    2,437 Operating-Working Capital Fund                     804      804          563            563 Debt Service Fund-Debt Service Account                         2,390     2,390         1,440        1,429 Debt Service Reserve Account                  3,122     3,121         3,078        3,068 General Reserve Fund                            5,318     5,316         2,911         2,914 Revolving Fund                                                              13            13 5 1 1~4 ]~ll     +1     ~1~442     ~1(~424 Contractual maturities:
1996 une 30 1995 Amortized I'air Cost Value Amortized Cost Fair Value Advance Payments Fund Operating-Working Capital Fund Debt Service Fund-Debt Service Account Debt Service Reserve Account General Reserve Fund Revolving Fund 3
Within one year                         8   2,003 8 2,003 After one year through five years            9 681     9 628
804 2,390 2,390 3,122 3,121 5,318 5,316 1,440 3,078 2,911 13 1,429 3,068 2,914 13 8
                                                )~ll   34 ~1~1+1 In addition, at June 30, 1996 and 1995, the Authority had advances to USBR of 810,119,000 and 811,903,000, respectively.
2,437 8
2,437 804 563 563 5
1 1~4 ]~ll
+1
~1~442
~1(~424 Contractual maturities:
Within one year After one year through five years 8
2,003 8
2,003 9 681 9 628
)~ll 34 ~1~1+1 In addition, at June 30, 1996 and 1995, the Authority had advances to USBR of 810,119,000 and 811,903,000, respectively.
Mead-Phoenix Pro'ect The balances in the special funds required by the Bond Indenture are as follows, in thousands:
Mead-Phoenix Pro'ect The balances in the special funds required by the Bond Indenture are as follows, in thousands:
une 30 1996                     1995 Amortized     Fair     Amortized       Fair Cost      Value        Cost        Value Acquisition Account                         8 12,571    8 12,571      8 19,830  8    19,830 Debt Service Fund-Debt Service Account                         4,976     4,967         4,444        4,444 Debt Service Reserve Account                  6,133     6,133         6,132        6,132 Issue Fund                                                              4,924         4,873 Revenue Fund                                        64         64 Operating Fund                                    239       239 Revolving Fund                                      6          6
une 30 1996 Amortized Cost Fair Value 1995 Amortized Cost Fair Value Acquisition Account Debt Service Fund-Debt Service Account Debt Service Reserve Account Issue Fund Revenue Fund Operating Fund Revolving Fund 4,976 4,967 6,133 6,133 4,444 6,132 4,924 4,444 6,132 4,873 64 239 6
                                                ~23   982 M2'h~R
64 239 6
8 12,571 8 12,571 8 19,830 8
19,830
~23 982 M2'h~R  


NOTE 3: (Continued)
NOTE 3:
(Continued)
Contractual maturities:
Contractual maturities:
Within one year                               2,389 8 2,389 After one year through five years            1,242     1,233 After ten years                              20 858     20 358 5 2'>MR     ~22K Mead-Adelanto Pro'ect The balances in the special funds required by the Bond Indenture are as follows, in thousands:
Within one year After one year through five years After ten years 2,389 8
une 30 1996                    1995 Amortized     Fair    Amortized      Fair Cost       Value       Cost       Value Acquisition Account                         8 36,979    8 36,979    8 37,745    8  37,745 Debt Service Fund-Debt Service Account                         15,194     15,166       12,353        12,353 Debt Service Reserve Account                16,865     16,865       17,040      17,040 Issue Fund                                                              16,517       16,346 Revenue Fund                                        71       71 Operating Fund                                    264        264 Revolving Fund                                        6          6 Contractual maturities:
2,389 1,242 1,233 20 858 20 358 5 2'>MR ~22K Mead-Adelanto Pro'ect The balances in the special funds required by the Bond Indenture are as follows, in thousands:
Within one year                           8   6,794 8 6,789 After one year through five years            4,161     4,138 After ten years                              58 424     58 424 I
1996 une 30 1995 Amortized Fair Cost Value Amortized Cost Fair Value Acquisition Account Debt Service Fund-Debt Service Account Debt Service Reserve Account Issue Fund Revenue Fund Operating Fund Revolving Fund 15,194 15,166 16,865 16,865 12,353 17,040 16,517 12,353 17,040 16,346 71 264 6
71 264 6
8 36,979 8 36,979 8 37,745 8
37,745 Contractual maturities:
Within one year After one year through five years After ten years 8
6,794 8
6,789 4,161 4,138 58 424 58 424 I
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NOTE 3: (Continued)
NOTE 3:
(Continued)
Multi le Pro'ect Fund The balances in the special funds required by the Bond Indenture are as follows, in thousands:
Multi le Pro'ect Fund The balances in the special funds required by the Bond Indenture are as follows, in thousands:
une 30 1996                      1995 Amortized       Fair     Amortized     Fair Cost       Value        Cost        Value Proceeds Account                             8256,830 8256,830         8256,830   8 256,830 Earnings Account                                3 278       3 278       1 384         1 384
1996 une 30 1995 Amortized Fair Cost Value Amortized Fair Cost Value Proceeds Account Earnings Account 8256,830 8256,830 8256,830 8 256,830 3 278 3 278 1 384 1 384 Contractual maturities:
                                                ~20~10     [~2(~1$       ~2~214     ~2~214 Contractual maturities:
Within one year After ten years
Within one year                              9,220 8   9,220 After ten years                            250 888   250 888
~20~10
                                                ~2() 10/f $ 2{~01 The balances in the special funds required by the Bond Indenture are as follows, in thousands:
[~2(~1$
une 30 1996                      1995 Amortized     Fair      Amortized      Fair Cost       Value         Cost       Value Operating Reserve                           8   1,238 8     1,238     8 1,618   8     1,618 Operating Revenue Fund                              7           7           2             2 Acquisition Account                                527         527         112           112 Debt Service Fund-Debt Service Account                          8,607     8,597         6,017         6,017 Debt Service Reserve Account                18,031     18,031       18,026       18,026 Reserve and Contingency                        13,377     13,383       11,224       11,252 Revolving                                                                    15           15 JL44~77 g 41~73           ~7~4       ~~~7L422 Contractual maturities:
~2~214
Within one year                           5   7,613 8 7,613 After one year through five years            16,149     16,145 After ten years                              18 025     18 025 fj 41~77   j~4~7$
~2~214 9,220 8
9,220 250 888 250 888
~2() 10/f $2{~01 The balances in the special funds required by the Bond Indenture are as follows, in thousands:
1996 une 30 1995 Amortized Fair Cost Value Amortized Cost Fair Value Operating Reserve Operating Revenue Fund Acquisition Account Debt Service Fund-Debt Service Account Debt Service Reserve Account Reserve and Contingency Revolving 8
1,238 8
1,238 8
1,618 8
1,618 7
7 2
2 527 527 112 112 8,607 8,597 6,017 6,017 18,031 18,031 18,026 18,026 13,377 13,383 11,224 11,252 15 15 JL44~77 g 41~73
~7~4
~~~7L422 Contractual maturities:
Within one year After one year through five years After ten years 5
7,613 8
7,613 16,149 16,145 18 025 18 025 fj 41~77 j~4~7$
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NOTE 3: (Continued Pro'ect Investment Sales There were no proceeds from sales of investments during fiscal 1996 or 1995.
NOTE 3:
(Continued Pro'ect Investment Sales There were no proceeds from sales of investments during fiscal 1996 or 1995.
NOTE 4 - LONG-TERM DEBT:
NOTE 4 - LONG-TERM DEBT:
Reference is made below to the Combined Schedule of Long-term Debt at June 30, 1996 for details related to all of the Authority's outstanding bonds.
Reference is made below to the Combined Schedule of Long-term Debt at June 30, 1996 for details related to all of the Authority's outstanding bonds.
Palo Verde Pro'ect To finance the purchase and construction of the Authority's share of the Palo Verde Project, the Authority issued Power Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of July 1, 1981 (Senior Indenture), as amended and supplemented. The Authority also has issued and has outstanding Power Project Subordinate Refunding Series Bonds issued under an Indenture of Trust dated as of January 1, 1993 (Subordinate Indenture). The Subordinate Refunding Bonds were issued to advance refund certain bonds previously issued under the Senior Indenture.
Palo Verde Pro'ect To finance the purchase and construction of the Authority's share of the Palo Verde Project, the Authority issued Power Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of July 1, 1981 (Senior Indenture), as amended and supplemented.
The Authority also has issued and has outstanding Power Project Subordinate Refunding Series Bonds issued under an Indenture of Trust dated as of January 1, 1993 (Subordinate Indenture).
The Subordinate Refunding Bonds were issued to advance refund certain bonds previously issued under the Senior Indenture.
The bond indenturcs provide that the Revenue Bonds and Subordinate Refunding Bonds shall be special, limited obligations of the Authority payable solely from and secured solely by (1) proceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to the Palo Verde Project (see Note 6) and interest on all moneys or securities (other than in the Construction Fund) held pursuant to the Bond Indenture and (3) all funds established by the Bond Indenture.
The bond indenturcs provide that the Revenue Bonds and Subordinate Refunding Bonds shall be special, limited obligations of the Authority payable solely from and secured solely by (1) proceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to the Palo Verde Project (see Note 6) and interest on all moneys or securities (other than in the Construction Fund) held pursuant to the Bond Indenture and (3) all funds established by the Bond Indenture.
At the option of the Authority, all outstanding Power Project Revenue Bonds and Subordinate Refunding Term Bonds are subject to redemption prior to maturity, except for the 1996 Subordinate Refunding Series A which is not redeemable.
At the option of the Authority, all outstanding Power Project Revenue Bonds and Subordinate Refunding Term Bonds are subject to redemption prior to maturity, except for the 1996 Subordinate Refunding Series A which is not redeemable.
The Bond Indenture requires mandatory 'sinking fund installments to be made beginning in fiscal year 2003 (1986 Series A Bonds and 1987 Series A Bonds), 2005 (1989 Series A Bonds), 2010 (1993 Series A Bonds), and 2008 (1996 Subordinate Refunding Series B). Scheduled principal maturities for the Palo Verde Project during the five fiscal years following June 30, 1996 are
The Bond Indenture requires mandatory 'sinking fund installments to be made beginning in fiscal year 2003 (1986 Series A Bonds and 1987 Series A Bonds), 2005 (1989 Series A Bonds), 2010 (1993 Series A Bonds), and 2008 (1996 Subordinate Refunding Series B).
$ 25,690,000 in 1997, 822,220,000 in 1998, $ 23,580,000 in 1999, 825,145,000 in 2000, and 512,860,000 in 2001. The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.8% and 6.0%, respectively.
Scheduled principal maturities for the Palo Verde Project during the five fiscal years following June 30, 1996 are
NOTE 4: (Continued)
$25,690,000 in 1997, 822,220,000 in 1998, $23,580,000 in 1999, 825,145,000 in 2000, and 512,860,000 in 2001.
Southern Transmission S stem Pro'ect To finance payments-in-aid of construction to IPA for construction of the STS, the Authority issued Transmission Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of May 1, 1983 (Senior Indenture), as amended and supplemented. The Authority also has issued and has outstanding Transmission Project Revenue Bonds 1991 and 1992 Subordinate Refunding Series issued under Indentures of Trust dated as of March 1, 1991 and June 1, 1992, respectively. The 1991 and 1992 subordinated bonds were issued to advance refund certain bonds previously issued under the Senior Indenture.
The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.8% and 6.0%, respectively.
NOTE 4:
(Continued)
Southern Transmission S stem Pro'ect To finance payments-in-aid of construction to IPA for construction of the STS, the Authority issued Transmission Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of May 1, 1983 (Senior Indenture), as amended and supplemented.
The Authority also has issued and has outstanding Transmission Project Revenue Bonds 1991 and 1992 Subordinate Refunding Series issued under Indentures of Trust dated as of March 1, 1991 and June 1, 1992, respectively.
The 1991 and 1992 subordinated bonds were issued to advance refund certain bonds previously issued under the Senior Indenture.
The bond indentures provide that the Revenue Bonds and the Subordinate Refunding Series Bonds shall be special, limited obligations of the Authority payable solely from and secured solely by (1) proceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to STS (see Note 6) and interest on all moneys or securities (other than in the Construction Fund) held pursuant to the Bond Indenture and (3) all funds established by the Bond Indenture.
The bond indentures provide that the Revenue Bonds and the Subordinate Refunding Series Bonds shall be special, limited obligations of the Authority payable solely from and secured solely by (1) proceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to STS (see Note 6) and interest on all moneys or securities (other than in the Construction Fund) held pursuant to the Bond Indenture and (3) all funds established by the Bond Indenture.
All outstanding Transmission Project Revenue and Refunding Bonds, at the option of the Authority, are subject to redemption prior to maturity.
All outstanding Transmission Project Revenue and Refunding Bonds, at the option of the Authority, are subject to redemption prior to maturity.
The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2003 (for the 1986 Series A Bonds), 2002 (1986 Series B Bonds) and 2007 (1988 Series A Bonds). Scheduled principal maturities for STS during the five fiscal years following June 30, 1996 are $ 10,845,000 in 1997, 821,565,000 in 1998, 822,790,000 in 1999, 810,200,000 in 2000, and
The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2003 (for the 1986 Series A Bonds), 2002 (1986 Series B Bonds) and 2007 (1988 Series A Bonds).
$ 10,115,000 in 2001. The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 8.3%.
Scheduled principal maturities for STS during the five fiscal years following June 30, 1996 are $10,845,000 in 1997, 821,565,000 in 1998, 822,790,000 in 1999, 810,200,000 in 2000, and
I.loover U ratin Pro ect To finance advance payments to USBR for application to the costs of the Hoover Uprating Project, the Authority issued Hydroelectric Power Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of March 1, 1986 (Bond Indenture).
$10,115,000 in 2001.
The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 8.3%.
I.loover U ratin Pro ect To finance advance payments to USBR for application to the costs of the Hoover Uprating Project, the Authority issued Hydroelectric Power Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of March 1, 1986 (Bond Indenture).
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from and secured solely by (1) the proceeds from the sale of the bonds, (2) all revenues from sales of energy to participants (see Note 6), (3) interest or other receipts derived from any moneys or securities held pursuant to the Bond Indenture and (4) all funds established by the Bond Indenture (except for the Interim Advance Payments Account in the Advance Payments Fund).
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from and secured solely by (1) the proceeds from the sale of the bonds, (2) all revenues from sales of energy to participants (see Note 6), (3) interest or other receipts derived from any moneys or securities held pursuant to the Bond Indenture and (4) all funds established by the Bond Indenture (except for the Interim Advance Payments Account in the Advance Payments Fund).
At the option of the Authority, all outstanding Hydroelectric Power Project Revenue Bonds are subject to redemption prior to maturity.
At the option of the Authority, all outstanding Hydroelectric Power Project Revenue Bonds are subject to redemption prior to maturity.
Line 982: Line 1,766:
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NOTE 4: (Continued)
NOTE 4:
The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2007 for the 1991 Series A Bonds maturing on October 1, 2010 and fiscal year 2011 for the 1991 Series A Bonds maturing on October 1, 2017. Scheduled principal maturities for the Hoover Uprating Project during the five fiscal years following June 30, 1996 are 81,085,000 in 1997, 81,130,000 in 1998, 81,230,000 in 1999, $ 1,285,000 in 2000, and 81,400,000 in 2001. The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.8% and 6.1%,
(Continued)
The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2007 for the 1991 Series A Bonds maturing on October 1, 2010 and fiscal year 2011 for the 1991 Series A Bonds maturing on October 1, 2017.
Scheduled principal maturities for the Hoover Uprating Project during the five fiscal years following June 30, 1996 are 81,085,000 in 1997, 81,130,000 in 1998, 81,230,000 in 1999, $1,285,000 in 2000, and 81,400,000 in 2001.
The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.8% and 6.1%,
respectively.
respectively.
During fiscal 1995, the Authority repurchased 8340,000 of outstanding Hydroelectric Power Project Revenue Bonds with excess funds in the Advance Payments I und.
During fiscal 1995, the Authority repurchased 8340,000 of outstanding Hydroelectric Power Project Revenue Bonds with excess funds in the Advance Payments I und.
Line 989: Line 1,776:
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) with respect to each authorized project, the revenues of such authorized project, and (3) all funds established by the Bond Indenture.
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) with respect to each authorized project, the revenues of such authorized project, and (3) all funds established by the Bond Indenture.
In October 1992, 8103,640,000 and 8285,010,000 of the Multiple Project Revenue Bonds were transferred to the Mead-Phoenix Project and the Mead-Adelanto Project, respectively, to finance the estimated costs of acquisition and construction of the projects.
In October 1992, 8103,640,000 and 8285,010,000 of the Multiple Project Revenue Bonds were transferred to the Mead-Phoenix Project and the Mead-Adelanto Project, respectively, to finance the estimated costs of acquisition and construction of the projects.
A total of $ 153,500,000 of the outstanding Multiple Project Revenue Bonds are not subject to redemption prior to maturity. At the option of the Authority, the balance of the outstanding bonds are subject to redemption prior to maturity.
A total of $153,500,000 of the outstanding Multiple Project Revenue Bonds are not subject to redemption prior to maturity.
The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2006 for the 1989 Series Bonds. The first scheduled principal maturity for the Multiple Project Revenue Bonds is 88,645,000 in fiscal year 2000. The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 6.8%.
At the option of the Authority, the balance of the outstanding bonds are subject to redemption prior to maturity.
The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2006 for the 1989 Series Bonds.
The first scheduled principal maturity for the Multiple Project Revenue Bonds is 88,645,000 in fiscal year 2000.
The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 6.8%.
Mead-Phoenix Pro'ect To finance the Authority's ownership interest in the estimated cost of the project, 8103,640,000 of the Multiple Project Revenue Bonds were transferred to the Mead-Phoenix Project in October 1992.
Mead-Phoenix Pro'ect To finance the Authority's ownership interest in the estimated cost of the project, 8103,640,000 of the Multiple Project Revenue Bonds were transferred to the Mead-Phoenix Project in October 1992.
In March 1994, the Authority issued and has outstanding 851,835,000 of Mead-Phoenix Revenue Bonds under an Indenture of Trust dated as of January 1, 1994 (Bond Indenture). The proceeds from the Revenue Bonds, together with drawdowns from the Debt Service Fund and Project I
In March 1994, the Authority issued and has outstanding 851,835,000 of Mead-Phoenix Revenue Bonds under an Indenture of Trust dated as of January 1, 1994 (Bond Indenture).
The proceeds from the Revenue Bonds, together with drawdowns from the Debt Service Fund and Project I
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NOTE 4: (Continued)
NOTE 4:
(Continued)
Acquisition Fund, werc used to advance refund 864,840,000 of the Multiple Project Revenue Bonds previously transferred to the Mead-Phoenix Project.
Acquisition Fund, werc used to advance refund 864,840,000 of the Multiple Project Revenue Bonds previously transferred to the Mead-Phoenix Project.
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to Mead-Phoenix (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) all
At the option of the Authority, all outstanding Mead-Phoenix Revenue Bonds are subject     to redemption prior to maturity.
: revenues, incomes, rents and receipts attributable to Mead-Phoenix (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.
The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2018 for the 1994 Series Bonds. The first scheduled principal maturity for the Mead-Phoenix Revenue Bonds is $ 1,295,000 in fiscal year 2000. The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 6.0%.
At the option of the Authority, all outstanding Mead-Phoenix Revenue Bonds are subject to redemption prior to maturity.
The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2018 for the 1994 Series Bonds.
The first scheduled principal maturity for the Mead-Phoenix Revenue Bonds is $1,295,000 in fiscal year 2000.
The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 6.0%.
Mead-Adelanto Pro'ect To finance the Authority's ownership interest in the estimated cost of the project, S285,010,000 of the Multiple Project Revenue Bonds were transferred to the Mead-Adelanto Project in October 1992.
Mead-Adelanto Pro'ect To finance the Authority's ownership interest in the estimated cost of the project, S285,010,000 of the Multiple Project Revenue Bonds were transferred to the Mead-Adelanto Project in October 1992.
In March 1994, the Authority issued and has outstanding 8173,955,000 of Mead-Adelanto Revenue Bonds under an Indenture of Trust dated as of January 1, 1994 (Bond Indenture). The proceeds of the Revenue Bonds, together with drawdowns from the Debt Service Fund and Project Acquisition Fund, were used to advance refund 8178,310,000 of the Multiple Project Revenue Bonds previously transferred to the Mead-Adelanto Project.
In March 1994, the Authority issued and has outstanding 8173,955,000 of Mead-Adelanto Revenue Bonds under an Indenture of Trust dated as of January 1, 1994 (Bond Indenture).
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, 1) proceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to Mead-Adelanto (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.
The proceeds of the Revenue Bonds, together with drawdowns from the Debt Service Fund and Project Acquisition Fund, were used to advance refund 8178,310,000 of the Multiple Project Revenue Bonds previously transferred to the Mead-Adelanto Project.
At the option of the Authority, all outstanding Mead-Adelanto Revenue Bonds are subject     to redemption prior to maturity.
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, 1) proceeds from the sale of bonds, (2) all
The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2018 for the 1995 Series Bonds, The first scheduled principal maturity for the Mead-Adelanto Revenue Bonds is 83,560,000 in fiscal year 2000. The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.9% and 6.0%, respectively.
: revenues, incomes, rents and receipts attributable to Mead-Adelanto (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.
S~P To finance the costs of acquisition of an ownership interest in Unit 3 of the SJGS, the Authority issued San Juan Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of January 1, 1993 (Bond Indenture).
At the option of the Authority, all outstanding Mead-Adelanto Revenue Bonds are subject to redemption prior to maturity.
The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2018 for the 1995 Series Bonds, The first scheduled principal maturity for the Mead-Adelanto Revenue Bonds is 83,560,000 in fiscal year 2000.
The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.9% and 6.0%, respectively.
S~P To finance the costs of acquisition of an ownership interest in Unit 3 of the SJGS, the Authority issued San Juan Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of January 1, 1993 (Bond Indenture).  


NOTE 4: (Continued)
NOTE 4:
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to San Juan (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.
(Continued)
The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) all
: revenues, incomes, rents and receipts attributable to San Juan (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.
At the option of the Authority, all outstanding San Juan Project Revenue Bonds are subject to redemption prior to maturity.
At the option of the Authority, all outstanding San Juan Project Revenue Bonds are subject to redemption prior to maturity.
The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2012 for the 1993 Series A Bonds. The scheduled principal maturities for the San Juan Project Revenue Bonds during the five fiscal years following June 30, 1996 are 86,035,000 in 1998, 86,275,000 in 1999, 86,540,000 in 2000 and 86,825,000 in 2001. The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.3%.
The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2012 for the 1993 Series A Bonds.
Refundin   Bonds In April 1996, the Authority issued 8152,905,000 of Palo Verde 1996 Subordinate Refunding Series A Bonds to refund 8163,355,000 of previously issued Palo Verde 1987 Refunding Series A Bonds and issued 858,870,000 of Palo Verde 1996 Subordinate Refunding Series B Bonds to refund 818,555,000 and 840,315,000 of previously issued Palo Verde 1986 Refunding Series B and 1987 Refunding Series A Bonds, respectively. The refunding is expected to reduce total debt service payments over the next 13 years by approximately 850,967,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings of approximately 829,537,000.
The scheduled principal maturities for the San Juan Project Revenue Bonds during the five fiscal years following June 30, 1996 are 86,035,000 in 1998, 86,275,000 in 1999, 86,540,000 in 2000 and 86,825,000 in 2001.
In March 1994, the Authority issued 851,835,000 of Mead-Phoenix Project Revenue Bonds and 8173,955,000 of Mead-Adelanto Project Revenue Bonds to refund 8243,150,000 of previously issued Multiple Project Revenue Bonds which were transferred to the Mead-Phoenix and Mead-Adelanto projects during fiscal year 1993. The partial refunding of the original issue within five years of its issuance triggered a recalculation of the arbitrage yield. The recalculation resulted in a higher arbitrage yield which reduced the rebate liability of the Authority. At June 30, 1996, cumulative savings due to the rebate calculation amounted to 86,401,924. This amount was allocated 81,707,180 and 84,694,744 to the Mead-Phoenix and Mead-Adelanto Projects, respectively.
The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.3%.
In July 1992, the Authority issued 8475,000,000 of Southern Transmission Project Revenue Bonds to refund 8385,385,000 of previously issued bonds. Principal and interest with respect to the 1992 bonds are allocated into four separate components. Each of components 1, 2 and 3 is secured by, and payable from, investments in its escrow fund until scheduled crossover dates. Component 4 proceeds of 814,100,000 were used to advance refund approximately 89,000,000 of bonds in fiscal year 1993. On the Component 1 Crossover date (January 1, 1994), Component 1 proceeds of 813,959,000 were used in fiscal 1994 to advance refund 813,455,000 of previously issued bonds.
Refundin Bonds In April 1996, the Authority issued 8152,905,000 of Palo Verde 1996 Subordinate Refunding Series A Bonds to refund 8163,355,000 of previously issued Palo Verde 1987 Refunding Series A Bonds and issued 858,870,000 of Palo Verde 1996 Subordinate Refunding Series B Bonds to refund 818,555,000 and 840,315,000 of previously issued Palo Verde 1986 Refunding Series B and 1987 Refunding Series A Bonds, respectively.
On the Component 2 Crossover date (January 1, 1995), Component 2 proceeds of 85,519,000 were used in fiscal 1995 to advance refund 85,335,000 of previously issued bonds. Proceeds from Component 3 of 8343,921,000 werc placed in an irrevocable trust and will be used to redeem 8313,050,000 of bonds currently included within long-term debt at scheduled call dates. The I
The refunding is expected to reduce total debt service payments over the next 13 years by approximately 850,967,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings of approximately 829,537,000.
In March 1994, the Authority issued 851,835,000 of Mead-Phoenix Project Revenue Bonds and 8173,955,000 of Mead-Adelanto Project Revenue Bonds to refund 8243,150,000 of previously issued Multiple Project Revenue Bonds which were transferred to the Mead-Phoenix and Mead-Adelanto projects during fiscal year 1993. The partial refunding of the original issue within five years of its issuance triggered a recalculation of the arbitrage yield. The recalculation resulted in a higher arbitrage yield which reduced the rebate liability of the Authority. At June 30, 1996, cumulative savings due to the rebate calculation amounted to 86,401,924.
This amount was allocated 81,707,180 and 84,694,744 to the Mead-Phoenix and Mead-Adelanto Projects, respectively.
In July 1992, the Authority issued 8475,000,000 of Southern Transmission Project Revenue Bonds to refund 8385,385,000 of previously issued bonds.
Principal and interest with respect to the 1992 bonds are allocated into four separate components.
Each of components 1, 2 and 3 is secured by, and payable from, investments in its escrow fund until scheduled crossover dates.
Component 4 proceeds of 814,100,000 were used to advance refund approximately 89,000,000 of bonds in fiscal year 1993.
On the Component 1 Crossover date (January 1, 1994), Component 1 proceeds of 813,959,000 were used in fiscal 1994 to advance refund 813,455,000 of previously issued bonds.
On the Component 2 Crossover date (January 1, 1995), Component 2 proceeds of 85,519,000 were used in fiscal 1995 to advance refund 85,335,000 of previously issued bonds.
Proceeds from Component 3 of 8343,921,000 werc placed in an irrevocable trust and will be used to redeem 8313,050,000 of bonds currently included within long-term debt at scheduled call dates.
The I
 
NOTE 4: (Continued) combined refunding is expected to reduce total debt service payments over the next 25 years by approximately 852,585,000 and is expected to result in an overall net present value savings of approximately 825,060,000.
NOTE 4: (Continued) combined refunding is expected to reduce total debt service payments over the next 25 years by approximately 852,585,000 and is expected to result in an overall net present value savings of approximately 825,060,000.
Until the bonds to be refunded by Component 3 are called, interest on the bonds is payable from interest earned on investments with a financial institution under a specific investment agreement purchased out of the proceeds of the sales and held in bank escrow accounts. After the monies in the escrow accounts are applied to redeem the bonds to be called, primarily through fiscal 1997, interest on the bonds will be payable from revenues. The trust account assets (8343,898,000 in escrow accounts and 82,410,000 in unamortized debt expense at June 30, 1996) and liabilities (8347,388,000, net of bond discounts, at June 30, 1996) for Component 3 are included in the Authority's financial statements. The revenue bonds to be refunded are also included in the financial statements until the scheduled call date, at which time the refunded bonds and related trust account assets will be removed from the balance sheet and the cost of refunding the debt will be included in unamortized debt expenses.
Until the bonds to be refunded by Component 3 are called, interest on the bonds is payable from interest earned on investments with a financial institution under a specific investment agreement purchased out of the proceeds of the sales and held in bank escrow accounts.
In January 1992, $ 70,680,000 of Palo Verde Special Obligation Crossover Series Bonds were issued, the proceeds of which were placed in an irrevocable trust and will be used to redeem 869,125,000 of bonds currently included within long term debt at scheduled call dates.
After the monies in the escrow accounts are applied to redeem the bonds to be called, primarily through fiscal 1997, interest on the bonds will be payable from revenues.
Until the bonds to be refunded by the Palo Verde Special Obligation Crossover Series Bonds are called, interest on the Palo Verde Special Obligation Crossover Series Bonds is payable from interest earned on securities of the United States Government purchased out of the proceeds of the sales and held in bank escrow accounts. After the monies in the escrow accounts are applied to redeem the bonds to be called, primarily through 1996, interest on the Palo Verde Special Obligation Crossover Series Bonds will be payable from revenues. The trust account assets and the liability for the Palo Verde Special Obligation Crossover Series Bonds are not included in the Authority's financial statements. At June 30, 1996 and 1995, $ 63,849,000 and $ 70,959,000, respectively, of these trust assets have been offset against the Palo Verde Special Obligation Crossover Series Bonds.
The trust account assets (8343,898,000 in escrow accounts and 82,410,000 in unamortized debt expense at June 30, 1996) and liabilities (8347,388,000, net of bond discounts, at June 30, 1996) for Component 3 are included in the Authority's financial statements.
The revenue bonds to be refunded are also included in the financial statements until the scheduled call date, at which time the refunded bonds and related trust account assets will be removed from the balance sheet and the cost of refunding the debt will be included in unamortized debt expenses.
In January 1992, $70,680,000 of Palo Verde Special Obligation Crossover Series Bonds were issued, the proceeds of which were placed in an irrevocable trust and will be used to redeem 869,125,000 of bonds currently included within long term debt at scheduled call dates.
Until the bonds to be refunded by the Palo Verde Special Obligation Crossover Series Bonds are called, interest on the Palo Verde Special Obligation Crossover Series Bonds is payable from interest earned on securities of the United States Government purchased out of the proceeds of the sales and held in bank escrow accounts.
After the monies in the escrow accounts are applied to redeem the bonds to be called, primarily through 1996, interest on the Palo Verde Special Obligation Crossover Series Bonds will be payable from revenues.
The trust account assets and the liability for the Palo Verde Special Obligation Crossover Series Bonds are not included in the Authority's financial statements.
At June 30, 1996 and 1995, $63,849,000 and $70,959,000, respectively, of these trust assets have been offset against the Palo Verde Special Obligation Crossover Series Bonds.
On July 1, 1995, the crossover date for the Palo Verde Special Obligation Bonds Series A, trust assets in escrow of 87,131,000 were used to advance refund 87,125,000 of previously issued bonds.
On July 1, 1995, the crossover date for the Palo Verde Special Obligation Bonds Series A, trust assets in escrow of 87,131,000 were used to advance refund 87,125,000 of previously issued bonds.
At June 30, 1996 and 1995, the aggregate amount of debt in all projects considered to be defeased was $ 3,535,075,000 and 83,305,725,000, respectively.
At June 30, 1996 and 1995, the aggregate amount of debt in all projects considered to be defeased was $3,535,075,000 and 83,305,725,000, respectively.
Interest Rate Swa In fiscal year 1991, the Authority entered into an Interest Rate Swap agreement with a third party for the purpose of hedging against interest rate fluctuations arising from the issuance of the Transmission Project Revenue Bonds, 1991 Subordinate Refunding Series as variable rate obligations. The notional amount of the Swap Agreement is equal to the par value of the bond ($ 291,700,000 and
Interest Rate Swa In fiscal year 1991, the Authority entered into an Interest Rate Swap agreement with a third party for the purpose of hedging against interest rate fluctuations arising from the issuance of the Transmission Project Revenue Bonds, 1991 Subordinate Refunding Series as variable rate obligations.
$ 292,000,000 at June 30, 1996 and 1995, respectively). The Swap Agreement provides for the Authority to make payments to the third party on a fixed rate basis at 6.38%, and for the third party to make reciprocal payments based on a variable rate basis (3.1% and 3.9% at June 30, 1996 and 1995, respectively). The bonds mature in 2019.
The notional amount of the Swap Agreement is equal to the par value of the bond ($291,700,000 and
$292,000,000 at June 30, 1996 and 1995, respectively).
The Swap Agreement provides for the Authority to make payments to the third party on a fixed rate basis at 6.38%, and for the third party to make reciprocal payments based on a variable rate basis (3.1% and 3.9% at June 30, 1996 and 1995, respectively).
The bonds mature in 2019.
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COMBiNED SCHEDULE OF LONG-TERhf DEBT (ln thousands)
COMBiNED SCHEDULE OF LONG-TERhf DEBT (ln thousands)
Date  Effcctivc  Maturity on
~o Principal:
                  ~o                                                                             tu33, Principal:
Palo Verde Project Revenue and Refunding Bonds 1985A 1985B 1986A 1986B 1987A 1989A 1992A 1992C 1993Sub 1993A 1996A 1996B Date 05/22/85 07/02/85 03/13/86 12/16/86 02/11/87 02/15/89 01/01/92 01/01/92 03/01/93 03/01/93 02/13/96 02/29/96 Effcctivc 9.7%
Palo Verde Project Revenue and Refunding Bonds         1985A         05/22/85     9.7%    1996  to 1999 8      1,070 1985B          07/02/85     9.1%    1996  to 2000        5,610 1986A          03/13/86     8.2%    1996  to 2006      71,220 1986B          12/16/86     7.2%    1996  to 2017      96,450 1987A          02/11/87   6.9%    1996  to 2017      43,720 1989A          02/15/89   Z.2%    1996  to 2015    287,705 1992A          01/01/92   6.0%    1996  to 2010        7465 1992C          01/01/92   6.0%    1996  to 2010      15,620 1993Sub          03/01/93   5.5%    1996  to 2017      98,200 1993A          03/01/93   5.5%    1996  to 2017    270,035 1996A          02/13/96   4.4%    1996  to 2017    152,905 1996B          02/29/96   4.4%   1996   to 201Z 1,108,670 Southern Transmission System Project Revenue and Refunding Bonds                             1986A           03/18/86   8.0%    1996 to 2021      107,300 1986B          04/29/86   7.5%    1996 to 2023      401,570 1988A          11/22/88   7.2%    1996 to 2015      154,085 1991A          4/17/91     6.4%        2019          291,700 1992 Comp 1, 2,4      7/20/92     6.1%    1996 to 2021        40,639 1992 Comp 3        7/20/92     6.1%    1996 to 2021      431,766 1993A          7/01/93     5.4%   1996 to 2023
9.1%
                                                                                                            ~5925 Hoover Uprating Project Revenue and Refunding Bonds                                         1986A         08/13/86     8.1%    1996 to 2017          4,160 1991          08/01/91     6.2%   1996 to 2017
8.2%
                                                                                                            ~5655 multiple Project Revenue Bonds Mead-Phoenix Project                                     1989         01/04/90     7.1%    1999 to 2020        38,800 Mead-Adelanto Project                                    1989          01/0$ /90   7.1%    1999 to 2020      106,ZOO hfultiple Project                                        1989          01/0$ /90   7.1%   1999 to 2020   ~259       99 Mead-Phoenix Project Revenue Bonds                       1994A          03/01/94    5.3%    2006 to 2015        5 835 hfead.Addanto Project Revenue Bonds                       1994A         03/01/94     5.3%    2006 to 2015        7 955 San Juan Project Revenue Bonds                            1993          06/01/93     5.6%   1997 to 2020       237 37 Total principal amount Unamortized bond discount:
7.2%
Palo Verde Project                                                                                            (101,823)
6.9%
Southern Transmission System Project                                                                          (159,935)
Z.2%
Hoover Uprating Project                                                                                          (3+89)
6.0%
Mead-Phoenix Project                                                                                            (4,218) hfead-Adelanto Project                                                                                        (12,650) hfultiple Project Fund                                                                                        (16813)
6.0%
San Juan Project                                                                                          ~L92$
5.5%
Total unamortized bond discount                                                                         ~3974      7 Long. tenn debt due within one year                                                                       ~4~5 Total long-term debt, net (including Subordinate Refunding Crossover Series)                           ~32    3933 Note - bonds which have been refunded arc excluded from this schedule
5.5%
4.4%
4.4%
Maturity on
: tu33, 1996 to 1999 1996 to 2000 1996 to 2006 1996 to 2017 1996 to 2017 1996 to 2015 1996 to 2010 1996 to 2010 1996 to 2017 1996 to 2017 1996 to 2017 1996 to 201Z 8
1,070 5,610 71,220 96,450 43,720 287,705 7465 15,620 98,200 270,035 152,905 1,108,670 Southern Transmission System Project Revenue and Refunding Bonds 1986A 1986B 1988A 1991A 1992 Comp 1, 2,4 1992 Comp 3 1993A 03/18/86 04/29/86 11/22/88 4/17/91 7/20/92 7/20/92 7/01/93 8.0%
7.5%
7.2%
6.4%
6.1%
6.1%
5.4%
1996 to 2021 1996 to 2023 1996 to 2015 2019 1996 to 2021 1996 to 2021 1996 to 2023 107,300 401,570 154,085 291,700 40,639 431,766 Hoover Uprating Project Revenue and Refunding Bonds 1986A 1991 08/13/86 08/01/91 8.1%
6.2%
1996 to 2017 1996 to 2017
~5925 4,160 multiple Project Revenue Bonds Mead-Phoenix Project Mead-Adelanto Project hfultiple Project 1989 1989 1989 01/04/90 01/0$/90 01/0$/90 7.1%
7.1%
7.1%
1999 to 2020 1999 to 2020 1999 to 2020
~5655 38,800 106,ZOO
~259 99 Mead-Phoenix Project Revenue Bonds hfead.Addanto Project Revenue Bonds San Juan Project Revenue Bonds Total principal amount Unamortized bond discount:
Palo Verde Project Southern Transmission System Project Hoover Uprating Project Mead-Phoenix Project hfead-Adelanto Project hfultiple Project Fund San Juan Project 1994A 1994A 1993 03/01/94 03/01/94 06/01/93 5.3%
5.3%
5.6%
2006 to 2015 2006 to 2015 1997 to 2020 5
835 7
955 237 37 (101,823)
(159,935)
(3+89)
(4,218)
(12,650)
(16813)
~L92$
Total unamortized bond discount Long.tenn debt due within one year Total long-term debt, net (including Subordinate Refunding Crossover Series)
Note - bonds which have been refunded arc excluded from this schedule
~3974 7
~4~5
~32 3933


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The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:
The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:
Cash and cash e uivalents The carrying value approximates fair value because of the short maturity of those instruments.
Cash and cash e uivalents The carrying value approximates fair value because of the short maturity of those instruments.
Investments Decommissionin     fund Escrow account - Subordinate Refundin         Crossover Series Crossover escrow accounts The fair values of investments are estimated based on quoted market prices for the same or similar investments.
Investments Decommissionin fund Escrow account - Subordinate Refundin Crossover Series Crossover escrow accounts The fair values of investments are estimated based on quoted market prices for the same or similar investments.
Lon -term deb S ecial Obli ation Crossover Series Bonds Subordinate Refundin           Crossover Series The fair value of the Authority's debt is estimated based on the quoted market prices for the same or similar issues or on the current average rates offered to the Authority for debt of approximately the same remaining maturities, net of the effect of a related interest rate swap agreement.
Lon -term deb S ecial Obli ation Crossover Series Bonds Subordinate Refundin Crossover Series The fair value of the Authority's debt is estimated based on the quoted market prices for the same or similar issues or on the current average rates offered to the Authority for debt of approximately the same remaining maturities, net of the effect of a related interest rate swap agreement.
The fair values of the Authority's financial instruments are as follows (in thousands):
The fair values of the Authority's financial instruments are as follows (in thousands):
une 30 1996                       1995 Amortized         Fair     Amortized       Fair Cost          Value        Cost        Value Assets:
1996 Amortized Cost Fair Value une 30 Amortized Cost 1995 Fair Value Assets:
Cash and cash equivalents                         173,798  8 173,798      8 120,610      8  120,610 Escrow account - Subordinate Refunding Crossover Series                               346,468       343,898     345,782         343,921 Decommissioning fund                                33,865        33,474        24,503         24,503 Investments                                      597,831        597,427      682,916          682,442 Liabilities:
Cash and cash equivalents Escrow account - Subordinate Refunding Crossover Series Decommissioning fund Investments 346,468 33,865 597,831 343,898 33,474 597,427 345,782 24,503 682,916 343,921 24,503 682,442 173,798 8
Debt                                           2,910,200     3,210,790     2,933,261       3,198,500 Subordinate Refunding Crossover Series            347,388       385,516     347,782         377,700 Off Balance Sheet Financial Instruments:
173,798 8 120,610 8
Special Obligation Crossover Series Bonds           63,415     -  67,739       70,680         75,800 Crossover escrow accounts                           63,849       63,849       70,959         70,959 I
120,610 Liabilities:
Debt Subordinate Refunding Crossover Series 2,910,200 3,210,790 2,933,261 3,198,500 347,388 385,516 347,782 377,700 Off Balance Sheet Financial Instruments:
Special Obligation Crossover Series Bonds 63,415 67,739 70,680 Crossover escrow accounts 63,849 63,849 70,959 75,800 70,959 I
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NOTE 6 - POWER SALES AND TRANSMISSION SERVICE CONTRACTS:
NOTE 6 - POWER SALES AND TRANSMISSION SERVICE CONTRACTS:
The Authority has power sales contracts with ten participants of the Palo Verde Project (see Note 1).
The Authority has power sales contracts with ten participants of the Palo Verde Project (see Note 1).
Under the terms of the contracts, the participants are entitled to popover output from the PVNGS and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on Power Project Revenue Bonds and other debt. The contracts expire in 2030 and, as long as any Power Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.
Under the terms of the contracts, the participants are entitled to popover output from the PVNGS and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on Power Project Revenue Bonds and other debt.
The Authority has transmission service contracts with six participants of the Southern Transmission System Project (see Note 1). Under the terms of the contracts, the participants are entitled to transmission service utilizing the Southern Transmission System Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on Transmission Project Revenue Bonds and other debt. The contracts expire in 2027 and, as long as any Transmission Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.
The contracts expire in 2030 and, as long as any Power Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.
In March 1986, the Authority entered into power sales contracts with six participants of the Hoover Uprating Project (see Note 1). Under the terms of the contracts, the participants are entitled to capacity and associated firm energy of the Hoover Uprating Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service whether or not the Hoover Uprating Project or any part thereof has been completed, is operating or is operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part. The contracts expire in 2018, and as long as any Hydroelectric Power Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.
The Authority has transmission service contracts with six participants of the Southern Transmission System Project (see Note 1).
In August 1992, the Authority entered into transmission service contracts with nine participants of the Mead-Phoenix Project (see Note 1). Under the terms of the contracts, the participants are entitled to transmission service utilizing the Mead-Phoenix Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on the Multiple Project and Mead-Phoenix Revenue Bonds and other debt, whether or not the Mead-Phoenix Project or any part thereof has been completed, is operating and operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part. The contracts expire in 2030 and, as long as any Multiple Project and Mead-Phoenix Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.
Under the terms of the contracts, the participants are entitled to transmission service utilizing the Southern Transmission System Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on Transmission Project Revenue Bonds and other debt.
In August 1992, the Authority entered into transmission service contracts with nine participants of the Mead-Adelanto Project (see Note 1). Under the terms of the contracts, the participants are entitled to transmission service utilizing the Mead-Adelanto Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on the Multiple Project and Mead-Adelanto Revenue Bonds and other debt, whether or not the Mead-Adelanto Project or any part thereof has been completed, is operating and operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part. The contracts expire l
The contracts expire in 2027 and, as long as any Transmission Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.
k%
In March 1986, the Authority entered into power sales contracts with six participants of the Hoover Uprating Project (see Note 1).
          ~
Under the terms of the contracts, the participants are entitled to capacity and associated firm energy of the Hoover Uprating Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service whether or not the Hoover Uprating Project or any part thereof has been completed, is operating or is operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part.
sg .
The contracts expire in 2018, and as long as any Hydroelectric Power Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.
Y I
In August 1992, the Authority entered into transmission service contracts with nine participants of the Mead-Phoenix Project (see Note 1).
J 1
Under the terms of the contracts, the participants are entitled to transmission service utilizing the Mead-Phoenix Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on the Multiple Project and Mead-Phoenix Revenue Bonds and other debt, whether or not the Mead-Phoenix Project or any part thereof has been completed, is operating and operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part.
I k
The contracts expire in 2030 and, as long as any Multiple Project and Mead-Phoenix Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.
I
In August 1992, the Authority entered into transmission service contracts with nine participants of the Mead-Adelanto Project (see Note 1).
Under the terms of the contracts, the participants are entitled to transmission service utilizing the Mead-Adelanto Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on the Multiple Project and Mead-Adelanto Revenue Bonds and other debt, whether or not the Mead-Adelanto Project or any part thereof has been completed, is operating and operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part.
The contracts expire k%
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NOTE 6: (Continued) in 2030 and, as long as any Multiple Project and Mead-Adelanto Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bond holders.
NOTE 6:
In January 1993, the Authority entered into power sales contracts with five participants of Unit 3 of the San Juan Project (see Note 1). Under the terms of the contracts, the participants are entitled to their proportionate share of the power output of the San Juan Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on the San Juan Revenue Bonds, whether or not Unit 3 of the San Juan Project or any part thereof is operating or operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part. The contracts expire in 2030 and, as long as any San Juan Revenue Bonds are
(Continued) in 2030 and, as long as any Multiple Project and Mead-Adelanto Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bond holders.
In January 1993, the Authority entered into power sales contracts with five participants of Unit 3 of the San Juan Project (see Note 1).
Under the terms of the contracts, the participants are entitled to their proportionate share of the power output of the San Juan Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on the San Juan Revenue Bonds, whether or not Unit 3 of the San Juan Project or any part thereof is operating or operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part.
The contracts expire in 2030 and, as long as any San Juan Revenue Bonds are
'outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.
'outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.
NOTE 7 - COSTS RECOVERABLE I ROM I'UTURE BILLINGS TO PARTICIPANTS:
NOTE 7 - COSTS RECOVERABLE I ROM I'UTURE BILLINGSTO PARTICIPANTS:
Billings to participants are designed to recover "costs" as defined by the power sales and transmission service agreements. The billings are structured to systematically provide for debt service requirements, operating funds and reserves in accordance with these agreements. Those expenses, according to generally accepted accounting principles (GAAP), which are not included as "costs" are deferred to such periods when it is intended that they be recovered through billings for the repayment of principal on related debt.
Billings to participants are designed to recover "costs" as defined by the power sales and transmission service agreements.
The billings are structured to systematically provide for debt service requirements, operating funds and reserves in accordance with these agreements.
Those expenses, according to generally accepted accounting principles (GAAP), which are not included as "costs" are deferred to such periods when it is intended that they be recovered through billings for the repayment of principal on related debt.
Costs recoverable from future billings to participants are comprised of the following:
Costs recoverable from future billings to participants are comprised of the following:
Balance        Fiscal      Balance June 30,         1996       June 30, 1995        ~Activit        1996 GAAP items not included in billings to participants:
Balance June 30, 1995 Fiscal 1996
Depreciation of plant                                   8348,328      8 49,323      N97,651 Amortization of bond discount, debt issue costs, and cost of refunding                     206,470         37,745       244,215 Nuclear fuel amortization                                    18,650          898         19,548 Decommissioning expense                                      75,233        7,610         82,843 Interest expense                                            23,165        22,798         45,963 Bond requirements included in billings to participants:
~Activit Balance June 30, 1996 GAAP items not included in billings to participants:
Operations and maintenance, net of investment income       (67,253)     (21,062)       (88,315)
Depreciation of plant Amortization of bond discount, debt issue costs, and cost of refunding Nuclear fuel amortization Decommissioning expense Interest expense 206,470 18,650 75,233 23,165 37,745 244,215 898 19,548 7,610 82,843 22,798 45,963 8348,328 8 49,323 N97,651 Bond requirements included in billings to participants:
Costs of acquisition of capacity - STS                      (18,350)                    (18,350)
Operations and maintenance, net of investment income Costs of acquisition of capacity - STS Reduction in debt service billings due to transfer of excess funds Principal repayments Other (67,253)
Reduction in debt service billings due to transfer of excess funds                          78,658      (11,099)       67,559 Principal repayments                                      (222,130)      (39,559)     (261,689)
(18,350) 78,658 (222,130)
Other                                                    ~31 740        ~3858         ~85 598
~31 740 (21,062)
                                                              ~41~1@f~42~7                 ]~~27 I
(88,315)
%' ~
(18,350)
(11,099) 67,559 (39,559)
(261,689)
~3858
~85 598
~41~1@f~42~7
]~~27 I
~
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NOTE 8 - COMMITMENTS AND CONTINGENCIES:
NOTE 8 - COMMITMENTSAND CONTINGENCIES:
On August 31, 1996, the California State Legislature approved Bill AB 1890 (Bill) which provides for broad deregulation of the power generation industry in California. The Bill, which is pending approval by the Governor, requires the participation of the state's three investor-owned utilities. Consumer-owned utilities can participate on a voluntary basis but must hold public hearings as part of its decision making process. The Bill, which was supported by the Authority, authorizes the collection of a transition charge for generation when a consumer-owned utility opens its service area to competition and participates in the independent transmission system established by the legislation. The Bill also mandates the collection of a public benefit charge from all electric utility customers in the state. Although these funds (currently estimated at 2.5% of gross revenues) must be spent on renewable resources, conservation, research and development, or low income rate subsidies, the governing authority of each consumer-owned utility will control actual expenditures.
On August 31, 1996, the California State Legislature approved Bill AB 1890 (Bill) which provides for broad deregulation of the power generation industry in California.
The Bill, which is pending approval by the Governor, requires the participation of the state's three investor-owned utilities.
Consumer-owned utilities can participate on a voluntary basis but must hold public hearings as part of its decision making process.
The Bill, which was supported by the Authority, authorizes the collection of a transition charge for generation when a consumer-owned utility opens its service area to competition and participates in the independent transmission system established by the legislation.
The Bill also mandates the collection of a public benefit charge from all electric utility customers in the state.
Although these funds (currently estimated at 2.5% of gross revenues) must be spent on renewable resources, conservation, research and development, or low income rate subsidies, the governing authority of each consumer-owned utilitywill control actual expenditures.
As a participant in the PVNGS, the Authority could be subject to assessment of retroactive insurance premium adjustments in the event of a nuclear incident at the PVNGS or at any other licensed reactor in the United States.
As a participant in the PVNGS, the Authority could be subject to assessment of retroactive insurance premium adjustments in the event of a nuclear incident at the PVNGS or at any other licensed reactor in the United States.
The Authority is involved in various legal actions. In the opinion of management, the outcome of such litigation or claims will not have a material effect on the financial position of the Authority or the respective separate projects.
The Authority is involved in various legal actions.
NOTE 9: SUBSE UENT EVENTS:
In the opinion of management, the outcome of such litigation or claims will not have a material effect on the financial position of the Authority or the respective separate projects.
NOTE 9:
SUBSE UENT EVENTS:
On July 1, 1996, the crossover date for t)ie Palo Verde Special Obligation Bonds Series B, trust assets held in escrow of 863,415,000 were used to advance refund 862,000,000 of previously issued bonds.
On July 1, 1996, the crossover date for t)ie Palo Verde Special Obligation Bonds Series B, trust assets held in escrow of 863,415,000 were used to advance refund 862,000,000 of previously issued bonds.
In August 1996, the Authority issued $ 89,570,000 of Palo Verde 1996 Subordinate Refunding Series C bonds to refund $ 95,015,000 of 1986 Refunding Series B bonds. The refunding is expected to reduce total debt service payments over the next 20 years by approximately 824,713,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings of approximately $ 16,955,000.
In August 1996, the Authority issued $89,570,000 of Palo Verde 1996 Subordinate Refunding Series C
In September 1996, the Authority issued 842,245,000 of Transmission Project Revenue Bonds, 1996 Subordinate Refunding Series A and 8121,065,000 of Transmission Project Revenue Bonds, 1996 Subordinate Refunding Series B to refund 868,720,000 and 8127,100,000 of the STS 1986 Refunding Series A and B, respectively. The refunding is expected to reduce total debt service payments over the next 10 years by approximately $ 6,029,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings of approximately N,372,000.
bonds to refund $95,015,000 of 1986 Refunding Series B bonds.
The refunding is expected to reduce total debt service payments over the next 20 years by approximately 824,713,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings of approximately $16,955,000.
In September 1996, the Authority issued 842,245,000 of Transmission Project Revenue Bonds, 1996 Subordinate Refunding Series A and 8121,065,000 of Transmission Project Revenue Bonds, 1996 Subordinate Refunding Series B to refund 868,720,000 and 8127,100,000 of the STS 1986 Refunding Series A and B, respectively.
The refunding is expected to reduce total debt service payments over the next 10 years by approximately $6,029,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings of approximately N,372,000.
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SUPPLEMFNTAL FINANCIALINFORitfATION INDF.X Palo Verde Pro'ect Supplemental Balance Sheet at Junc 30, 1996 and 1995 Supplemental Statement of Operations for thc Years Ended June 30, 1996 and 1995 Supplcmcntal Statement of Cash Flows for thc Years Ended Junc 30, 1996 and 1995 Supplemental Schcdulc of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended Junc 30, 1996 Southern Transmission S stem Pro ect Supplemental   Balance Sheet at June 30, 1996 and 1995 Supplemental   Statcmcnt of Operations for the Years Ended June 30, 1996 and 1995 Supplcmcntal   Statcmcnt of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental   Schedule of Receipts and Disbursements in Funds Required by thc Bond Indcnturc for thc Year Ended June 30, 1996 Hoover U ratin     Pro'ect Supplcmcntal Balance Sheet at Junc 30, 1996 and 1995 Supplemental Statement of Operations for the Years Ended Junc 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for thc Year Ended June 30, 1996 hfead-Phoenix Pro'ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Operations for the Three Months Ended June 30, 1996 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schcdulc of Receipts and Disbursements in Funds Rcquircd by the Bond indenture for thc Year Ended Junc 30, 1996 Mead-Adelanto Pie'ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statcmcnt of Operations for the Three Months Ended June 30, 1996 Supplcmcntal Statcmcnt of Cash Flows for the Years Ended Junc 30, 1996 and 1995 Supplcmcntal Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Multi lc Pro'cct Fund Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Rcquircd by the Bond Indenture for the Year Ended June 30, 1996 San   uan Pro'ect Supplcmcntal Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Operations for the Years Ended June 30, 1996 meed 1995 Supplemental Statement of Cash Flows for thc Years Ended Junc 30, 1996 and 1995 Supplemental Schedule of Receipts and Disburscmcnts in Funds Required by the Bond Indenture for thc Year Ended June 30, 1996 5
Palo Verde Pro'ect SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SUPPLEMFNTAL FINANCIALINFORitfATION INDF.X Supplemental Balance Sheet at Junc 30, 1996 and 1995 Supplemental Statement of Operations for thc Years Ended June 30, 1996 and 1995 Supplcmcntal Statement of Cash Flows for thc Years Ended Junc 30, 1996 and 1995 Supplemental Schcdulc of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended Junc 30, 1996 Southern Transmission S stem Pro ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statcmcnt of Operations for the Years Ended June 30, 1996 and 1995 Supplcmcntal Statcmcnt of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by thc Bond Indcnturc for thc Year Ended June 30, 1996 Hoover U ratin Pro'ect Supplcmcntal Balance Sheet at Junc 30, 1996 and 1995 Supplemental Statement of Operations for the Years Ended Junc 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for thc Year Ended June 30, 1996 hfead-Phoenix Pro'ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Operations for the Three Months Ended June 30, 1996 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schcdulc of Receipts and Disbursements in Funds Rcquircd by the Bond indenture for thc Year Ended Junc 30, 1996 Mead-Adelanto Pie'ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statcmcnt of Operations for the Three Months Ended June 30, 1996 Supplcmcntal Statcmcnt of Cash Flows for the Years Ended Junc 30, 1996 and 1995 Supplcmcntal Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Multi lc Pro'cct Fund Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Rcquircd by the Bond Indenture for the Year Ended June 30, 1996 San uan Pro'ect Supplcmcntal Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Operations for the Years Ended June 30, 1996 meed 1995 Supplemental Statement of Cash Flows for thc Years Ended Junc 30, 1996 and 1995 Supplemental Schedule of Receipts and Disburscmcnts in Funds Required by the Bond Indenture for thc Year Ended June 30, 1996 5
SOUTIIERN CALIFORNIA PVBLIC POWER AUTIIORITY PALO VERDE PROJECT SUPPI.F.ltIF.NTAI. BAIANCE SHF.FT (In thousands) une 30 1995 Vtility plant:
 
Production                                                                             $ 613,608       $  611,771 Transmission                                                                              14,146           14,146 General                                                                                    2 569              2 674 630,323          628,491 Less - Accumulated depreciation                                                       250 021          219 881 380,302          408,610 Construction work in progress                                                             9,503              9,683 Nuclear fuel, at amortized cost                                                           13 225            12716 Net utility plant                                                                 403 030         431 009 Special funds:
SOUTIIERN CALIFORNIAPVBLIC POWER AUTIIORITY PALO VERDE PROJECT SUPPI.F.ltIF.NTAI. BAIANCESHF.FT (In thousands) une 30 1995 Vtilityplant:
Production Transmission General 613,608 14,146 2 569 611,771 14,146 2 674 Less - Accumulated depreciation Construction work in progress Nuclear fuel, at amortized cost Net utility plant 630,323 250 021 380,302 9,503 13 225 403 030 628,491 219 881 408,610 9,683 12716 431 009 Special funds:
Availablc for sale at fair value:
Availablc for sale at fair value:
Decommissioning fund                                                                   33,474           24,503 Invcstmcnts                                                                            115,746          143,600 Interest receivable                                                                        1,512              1,223 Cash and cash cquivalcnts                                                                  67 879            49 354 218 61           218 680 Accounts rcceivablc                                                                           738               912 Materials and supplies                                                                       9,240              9,618 Costs recoverable front future billings to participants                                   204,945          197,515 Unrcalizcd loss on invcstmcnts in funds available for sale                                     456                226 Vnamortizcd debt expenses, less accumulated antortization of $ 65,795 and $ 71,525         204 093         209 740 Total assets                                                                        f~~73           ~067   700 I.IABII,ITIFS Long-term debt                                                                           5 9S1 155       ~996 390 Current liabilities:
Decommissioning fund Invcstmcnts Interest receivable Cash and cash cquivalcnts 33,474 115,746 1,512 67 879 24,503 143,600 1,223 49 354 218 61 218 680 Accounts rcceivablc 738 912 Materials and supplies Costs recoverable front future billings to participants Unrcalizcd loss on invcstmcnts in funds available for sale Vnamortizcd debt expenses, less accumulated antortization of $65,795 and $71,525 Total assets 9,240 204,945 456 204 093 f~~73 9,618 197,515 226 209 740
Long-term debt duc within onc year                                                       25,690           23,855 Accrued interest                                                                          24,535            30,685 Accounts payable and accrued cxpcnscs                                                    10 333            16 770 Total current liabilities                                                               60 558           71 310 Commitments and contingencies Total liabilities                                                                   ~0~7             ~067   700 See notes to financial statements.
~067 700 I.IABII,ITIFS Long-term debt 5
9S1 155
~996 390 Current liabilities:
Long-term debt duc within onc year Accrued interest Accounts payable and accrued cxpcnscs 25,690 24,535 10 333 23,855 30,685 16 770 Total current liabilities 60 558 71 310 Commitments and contingencies Total liabilities
~0~7
~067 700 See notes to financial statements.
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS (In thousands)
Year Ended une 30 1996         1995 Operating revenue:
Year Ended une 30 1996 1995 Operating revenue:
Sales of electric energy                                             ~185 464     ~129 180 Operating expenses:
Sales of electric energy
Nuclear fuel                                                             7,949       8,150 Other operations                                                        25,815      25,307 Maintenance                                                              6,317        7,825 Depreciation                                                            18,425      19,145 Decommissioning                                                        12 497      15 401 Total operating expenses                                          71.003      73.828 Operating income                                                        64,461      55,352 Investment income                                                        10 886        9.968 Income before debt expense                                      75,347      65,320 Debt expense                                                             82 777      77 976 Costs recoverable from future billings to participants See notes to financial statements.
~185 464
~129 180 Operating expenses:
Nuclear fuel Other operations Maintenance Depreciation Decommissioning Total operating expenses Operating income Investment income Income before debt expense 7,949 25,815 6,317 18,425 12 497 71.003 64,461 10 886 75,347 8,150 25,307 7,825 19,145 15 401 73.828 55,352 9.968 65,320 Debt expense Costs recoverable from future billings to participants 82 777 77 976 See notes to financial statements.
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMFNTAL STATEMENT OF CASH FLOWS (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMFNTAL STATEMENT OF CASH FLOWS (In thousands)
Year Fndcd unc 30 1996             1995 Cash flows from operating activities:
Year Fndcd unc 30 1996 1995 Cash flows from operating activities:
Costs recoverable from future billings to participants                             (S      7,430)  (S  12,656)
Costs recoverable from future billings to participants Adjustments to arrive at net cash provided by (used for) operating activitics-Depreciation Decommissioning Amortization of nuclear fuel Amortization of debt costs Changes in assets and liabilities:
Adjustments to arrive at net cash provided by (used for) operating     activitics-Depreciation                                                                         18,425        19,145 Decommissioning                                                                       12,497        13,401 Amortization of nuclear fuel                                                           7,949        8,150 Amortization of debt costs                                                           24,428        16,607 Changes in assets and liabilities:
Decommissioning fund Interest receivable Accounts receivable Materials and supplies Other assets Accrued interest Accounts payable and accrued expenses 18,425 12,497 7,949 24,428 19,145 13,401 8,150 16,607 (8,971)
Decommissioning fund                                                                 (8,971)       (1,297)
(289) 174 378 55 (6,150)
Interest receivable                                                                    (289)         127 Accounts receivable                                                                    174          131 Materials and supplies                                                                  378          729 Other assets                                                                            55            (2)
~6437 (1,297) 127 131 729 (2)
Accrued interest                                                                    (6,150)         (719)
(719) 3 241 (S
Accounts payable and accrued expenses                                        ~6437                3 241 Net cash provided by operating activities                                   34 629       46 857 Cash flows from investing activities:
7,430)
Payments for construction of facility                                                 (10,892)       (9,569)
(S 12,656)
Purchases of investmcnts                                                            (154,685)       (97,108)
Net cash provided by operating activities 34 629 46 857 Cash flows from investing activities:
Proceeds from sale/maturity of invcstmcnts                                          182 309         68 891 Net cash provided by (used for) investing activities                         16 732   ~37 786 Cash flows from capital and related financing activities:
Payments for construction of facility Purchases of investmcnts Proceeds from sale/maturity of invcstmcnts (10,892)
Payment   of principal on long-term debt                                               (231855)      (22,425)
(9,569)
Payment   of bond issue costs                                                             (4,832)
(154,685)
Payment   for defcasancc of revenue bonds                                             (233,632)
(97,108) 182 309 68 891 Net cash provided by (used for) investing activities 16 732
Proceeds   from issuance of refunding bonds                                           229 483 Nct cash used for capital and rclatcd financing activities                 (32,836)     (22,425)
~37 786 Cash flows from capital and related financing activities:
Nct increase (decrease) in cash and cash cquivalcnts                                       18,525      (13,354)
Payment of principal on long-term debt Payment of bond issue costs Payment for defcasancc of revenue bonds Proceeds from issuance of refunding bonds (231855)
Cash and cash cquivalcnts at beginning of period                                           49 354       62 708 Cash and cash equivalents at end   of year                                         ~67 87         ~9~35 Supplemental disclosure of cash flow infortnation:
(4,832)
Cash paid during the year for interest (nct of amount capitalized)                 ~644       9 ~62089 Scc notes to financial statements.
(233,632) 229 483 (22,425)
Nct cash used for capital and rclatcd financing activities (32,836)
(22,425)
Nct increase (decrease) in cash and cash cquivalcnts Cash and cash cquivalcnts at beginning of period 18,525 49 354 (13,354) 62 708 Cash and cash equivalents at end of year
~67 87
~9~35 Supplemental disclosure of cash flow infortnation:
Cash paid during the year for interest (nct of amount capitalized)
~644 9
~62089 Scc notes to financial statements.
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPIS AND DISBURSEMEKIS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDFD UNF. 30 1996 (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPIS AND DISBURSEMEKIS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDFD UNF. 30 1996 (In thousands)
Debt                                                         Reserve &                        Decommissioning Service             Revenue               Operating           Contingency             Issue         Funds Fund               Fund                  Fund                  Fund                Fund            I & II         Total Balance at June 30, 1995                                 132 133                                 8   30948             8 16574           8     12482       8 24490       8 216627 Additions:
Debt Service Fund Revenue Fund Operating Fund Reserve &
Investment earnings                                     4,409                  31                    834                1,100                  616            749            7,739 Distribution of investment earnings                     (5,734)             8,604                  (1,213)              (1,000)               (657)
Contingency Fund Decommissioning Issue Funds Fund I & II Total Balance at June 30, 1995 132 133 8
Discount on investment purchases                        1,971                  3                     513                  336                  41            423            3,287 Revenue from power sales                                    49            129,180                       37                  6                                            129,272 Distribution of revenues                                81,922            (138,843)               39,603                 3,989               5,325           8,004 Transfers to escrow for rcfundings                      (10,413)                78                      (93)            (2,886)              4,046                          (9,268)
30948 8 16574 8
Transfer from escrow for principal and interest payments                              379 634                  951                11 067              10 581                                              380 099 Total                                      451 838                                      28 614              12 126                9 371           9 176         511 129 Deductions:
12482 8 24490 8 216627 Additions:
Construction expenditures                                                                                                 3,060                                                3,060 Operating expenditures                                                                             31,041                                                                    31,046 Fuel costs                                                                                           8,45?                                                                    8,457 Bond issue costs                                                                                                                             3,173                            3,173 Payment of principal                                   23,855                                                                                                              23,855 Interest paid                                           55,130                                                                                5,663                          60,793 Premium and interest paid on investments                   202                                        115                  58                                131              506 Payment of principal and interest on escrow bonds                                       380 099                                                                                                               380 099 Total                                     459 286                                     39 613                 3 118               8 836             136         510 989 Balance at June 30, 1996                               ~124 684           S         4             ~19 949               ~24   582         ~I~07             3 33 530       ~26 767 This schedule summarizes the receipts and disbursements in funds required under thc Bond Indenture and         has been prepared from thc trust statements. The balances in the funds consist of cash and investments at original cost. These balances do not include accrued interest receivable     of $ 1,245 and $ 1,223 and Decommissioning Fund accrued interest receivable of $ 267 and $ 138 at June 30, 1996 and 1995, respectively, nor do they include total amortized     net investment discounts of $ 788 and $ 918 at June 30, 1996 and 1995, respectively. These balances also do not include unrealized loss on investments in funds available for sale     of $ 456 and $ 226 at June 30, 1996 and 1995, respectively.
Investment earnings Distribution of investment earnings Discount on investment purchases Revenue from power sales Distribution of revenues Transfers to escrow for rcfundings Transfer from escrow for principal and interest payments Total 4,409 (5,734) 1,971 49 81,922 (10,413) 379 634 451 838 31 8,604 3
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129,180 (138,843) 78 951 834 (1,213) 513 37 39,603 (93) 11 067 28 614 1,100 (1,000) 336 6
3,989 (2,886) 10 581 12 126 616 (657) 41 5,325 4,046 749 423 8,004 7,739 3,287 129,272 (9,268) 380 099 9 371 9 176 511 129 Deductions:
Construction expenditures Operating expenditures Fuel costs Bond issue costs Payment of principal Interest paid Premium and interest paid on investments Payment of principal and interest on escrow bonds 23,855 55,130 202 380 099 31,041 8,45?
115 3,060 58 3,173 5,663 131 3,060 31,046 8,457 3,173 23,855 60,793 506 380 099 Total 459 286 39 613 3 118 8 836 136 510 989 Balance at June 30, 1996
~124 684 S
4
~19 949
~24 582
~I~07 3
33 530
~26 767 This schedule summarizes the receipts and disbursements in funds required under thc Bond Indenture and has been prepared from thc trust statements.
The balances in the funds consist of cash and investments at original cost.
These balances do not include accrued interest receivable of $1,245 and $ 1,223 and Decommissioning Fund accrued interest receivable of $267 and $ 138 at June 30, 1996 and 1995, respectively, nor do they include total amortized net investment discounts of $788 and $918 at June 30, 1996 and 1995, respectively.
These balances also do not include unrealized loss on investments in funds available for sale of $456 and $226 at June 30, 1996 and 1995, respectively.
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLFBIENTAL BALANCE SHEET (In thousands) unc 30 1996              1995 55527S Utility plant:
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT 55527S SUPPLFBIENTAL BALANCESHEET (In thousands) 1996 unc 30 1995 Utilityplant:
Transmission                                                                 S   674,606         8   675,301 General                                                                            18 893              18 893 693,499             694,194 Less  - Accumulated depreciation                                                  194 127            174 392 499,372             519,802 Construction work in progress                                                                            1 212 Nct utility plant                                                       499 372            521 014 Special funds:
Transmission General S
674,606 18 893 8
675,301 18 893 Less - Accumulated depreciation 693,499 194 127 694,194 174 392 Construction work in progress 499,372 519,802 1 212 Nct utility plant Special funds:
Available for sale at fair value:
Available for sale at fair value:
Investmcnts                                                                 102,842            144,476 Escrow account - Subordinate Refunding Crossover Series                     343,898            343,921 Advance to Intermountain Power Agency                                             19,550              19,550 Interest rcccivablc                                                                2,169               1,807 Cash and cash equivalents                                                          90 324              54 678 558 783             564 432 Accounts receivable                                                                   2,687               2,469 Costs recoverable from future billings to participants                             203,787            183,154 Unrealized loss on investments in funds available for sale                           2,865               1,89?
Investmcnts Escrow account - Subordinate Refunding Crossover Series Advance to Intermountain Power Agency Interest rcccivablc Cash and cash equivalents 499 372 102,842 343,898 19,550 2,169 90 324 521 014 144,476 343,921 19,550 1,807 54 678 558 783 564 432 Accounts receivable 2,687 2,469 Costs recoverable from future billings to participants Unrealized loss on investments in funds available for sale 203,787 2,865 183,154 1,89?
Unamortized debt expenses, less accumulated amortization of S59,752 and S51,415                                               164 247             172 780 Total assets                                                       aL 43~741             1 445 746 I.IABILITIES Long-term debt                                                                   1 034 757         5 1 042002 Subordinate Refunding Crossover Series                                              347 388            347 782 Current liabilities:
Unamortized debt expenses, less accumulated amortization of S59,752 and S51,415 164 247 172 780 Total assets aL43~741 1 445 746 I.IABILITIES Long-term debt Subordinate Refunding Crossover Series 1 034 757 347 388 5
Long-term debt duc within one year                                                 10,845              14,325 Accrued interest                                                                   38,436              39,379 Accounts payable and accrued expenses                                                 315                2 258 Total current liabilities                                               49 596             55 962 Commitmcnts and contingencies Total liabilities                                                   ~13     ~741         1 445 746 Scc notes to financial statements.
1 042002 347 782 Current liabilities:
Long-term debt duc within one year Accrued interest Accounts payable and accrued expenses Total current liabilities 10,845 38,436 315 49 596 14,325 39,379 2 258 55 962 Commitmcnts and contingencies Total liabilities Scc notes to financial statements.
~13
~741 1 445 746


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Line 1,155: Line 2,079:
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS (In thousands)
Year Ended une 30 1996         1995 Operating revenue:
Year Ended une 30 1996 1995 Operating revenue:
Sales of transmission services                                       85 297       91 250 Operating expenses:
Sales of transmission services 85 297 91 250 Operating expenses:
Other operations                                                     10,192       11,839 Maintenance                                                            5,236       4,498 Depreciation                                                        20 329       19 735 Total operating expenses                                      35 757       36 072 Operating income                                                    49,540       55,178 Investment income                                                      28.993       30 085 Income before debt expense                                    78,533       85,263 Debt expense                                                           99 166        99 823 Costs recoverable from future billings to participants               OL22 KB     (~4~
Other operations Maintenance Depreciation Total operating expenses Operating income Investment income Income before debt expense 10,192 5,236 20 329 35 757 49,540 28.993 78,533 11,839 4,498 19 735 36 072 55,178 30 085 85,263 Debt expense Costs recoverable from future billings to participants 99 166 99 823 OL22 KB
See notes to financial statements.
(~4~
See notes to financial statements.
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Line 1,165: Line 2,090:
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SOUTIIERN CALIFORNIA PUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPI.FMENT I. STATEMENT OF CASH FLOWS (In thousands)
SOUTIIERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPI.FMENT I. STATEMENT OF CASH FLOWS (In thousands)
Year Ended une 30 1996           1995 Cash flows from operating activities:
Year Ended une 30 1996 1995 Cash flows from operating activities:
Costs recoverable from future billings to participants                             (8 20,633)      (8 14,560)
Costs recoverable from future billings to participants Adjustments to arrive at nct cash provided by (used for) operating activitics-Dcpreciation Amortization of debt costs Write-offof construction work in progress costs Changes in assets and liabilities:
Adjustments to arrive at nct cash provided by (used for) operating     activitics-Dcpreciation                                                                       20,329          19,735 Amortization of debt costs                                                         11,739          11,545 Write-off of construction work in progress costs                                   1,313 Changes in assets and liabilities:
Interest reccivablc Accounts rcccivablc Other assets Accrued interest Accounts payablc and accrued expenses (8 20,633) 20,329 11,739 1,313 (362)
Interest reccivablc                                                                 (362)             315 Accounts rcccivablc                                                                (218)           1,940 Other assets                                                                                          17 Accrued interest                                                                    (943)        10,773 Accounts payablc and accrued expenses                                          ~1943            ~268 Net cash provided by operating activities                                     9 282           29 497 Cash flows from investing activities:
(218)
Payments for construction of facility                                                                     (315)
(943)
Purchases of investments                                                           (154,904)         (94,425)
~1943 (8 14,560) 19,735 11,545 315 1,940 17 10,773
Proceeds from sale/maturity of invcstmcnts                                          195 593          90 462 Net cash provided by (used for) investing activities                         40 689             4 278 Cash flows from capital and rclatcd financing activities:
~268 Net cash provided by operating activities 9 282 29 497 Cash flows from investing activities:
Payment for defeasance of revenue bonds                                                                 (5,479)
Payments for construction of facility Purchases of investments Proceeds from sale/maturity of invcstmcnts (154,904) 195 593 (315)
Repayment of principal on long-term debt                                             14 325       ~13     615 Nct cash used for capital and related financing activities                   14 325          19 094 Net increase in cash and cash equivalents                                             35,646            6,125 Cash and cash equivalents at beginning of year                                         54 678          48 553 Cash and cash equivalents at cnd   of year                                                         ~5~78 Supplemental disclosure of cash flow information:
(94,425) 90 462 Net cash provided by (used for) investing activities 40 689 4 278 Cash flows from capital and rclatcd financing activities:
Cash paid during the year for interest (nct of amount capitalized)                     8 370           96 072 Sce notes to financial statcmcnts.
Payment for defeasance of revenue bonds Repayment of principal on long-term debt 14 325 (5,479)
~13 615 Nct cash used for capital and related financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at cnd of year 14 325 35,646 54 678 19 094 6,125 48 553
~5~78 Supplemental disclosure of cash flow information:
Cash paid during the year for interest (nct of amount capitalized) 8 370 96 072 Sce notes to financial statcmcnts.  


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SOUTHERN TRANSh! ISSION SYSTEM PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPIS AND DISBURSEhf ERIS IN FUNDS REQUIRED BY TIIE BOND INDENTURE YFA       D D         F30 1996 (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSh!ISSION SYSTEM PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPIS AND DISBURSEhf ERIS IN FUNDS REQUIRED BY TIIE BOND INDENTURE YFA D D F30 1996 (In thousands)
Construction Fund-Initial
Construction Fund-Initial Facilities
                                                                                ~t Debt             General Facilities        Service          Operating         Reserve              Issue            Escrow
~t Debt Service General Operating
                                                                                                                      ~utci             Fund                 ~un               Fund Balance at June 30, 1995                                                               222                                 602       ~~4                 2   77 ull     5   3M4222       2   542 660 Additions:
~utci Reserve Fund Issue
Investmcnt earnings                                                                   12               6,485             463              635              39102            18,567            29,264 Distribution of investment earnings                                                                  (5,710)           9,408             (596)              6,182            (9,284)
~un Escrow Fund Balance at June 30, 1995 222 602
Revenue from transmission sales                                                                                        83,953                                                                    83,953 Distribution of revenue                                                                              42@30            (78,891)           (5303)             50,942             (9,278)
~~4 2
Transfer from escrow for principal and Interest payments                                                                        ~29                                                                                        ~29 Total                                                                                 ~au               ~a33           ~5264               ~2~2                               ~26       28 Deductions:
77 ull 5
Operating expenses                                                                                                     14,904                                                                    14,904 Payment of principal                                                                                                                                         149325                              14/25 Interest paid                                                                                       41476                                                  19/86                                60,862 Payment of principal and interest on escrow bonds                                                   12,921                                                  26@75                              39,496 Premium and interest paid on investment purchases                                                     1,267                                 39                                                   I/06 Other Total                                                                                     55 764                                 39         ~61       35                       ~13      t~4 Balance at June 30, 1996                                                      z       234         ~106     411       ~605           ~4757               ~76 219         ~343     874         536 946 This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust staterncnts. The balances in the funds consist of cash and Investments at original cost. These balances do not include accrued interest receivable of $ 2,169 and $ 1,807 at June 30, 1996 and 1995, respectively, nor do they include total amortized net investment discounts of $ 2,983 and $ 2@12 at June 30, 1996 and 1995, respectively. 'Ihese balances do not include unrealized loss on investments in funds available for sale of $ 2,865 and $ 1,897 at June 30, 1996 and 1995, respectively.
3M4222 2
I SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL BALANCE SHEET (In thousands) une 30 1996            1995 ASSETS Special funds:
542 660 Additions:
Investments available for sale at fair value                       8 9,628            7,653 Advances for capacity and energy, net                               10,119          11,903 Interest receivable                                                       6              26 Cash and cash equivalents                                             1 997           2 745 21 750         22 327 Accounts receivable                                                         19 Costs recoverable from future billings to participants                   7,538          7,299 Unrealized loss on investments in funds available for sale                                   18 Unamortized debt expenses, less accumulated amortization of $ 937 and $ 795                                         3 307           3 512 Total assets                                                 R&2&i           f~l'g LIABILITIES Long-term debt                                                         30 981         31 977 Current liabilities:
Investmcnt earnings Distribution of investment earnings Revenue from transmission sales Distribution of revenue Transfer from escrow for principal and Interest payments 12 6,485 (5,710) 42@30
Long-term debt due within one year                                     1,085            610 Accrued interest                                                         489            500 Accounts payable and accrued expenses                                     62             69 Total current liabilities                                       1 636           1 179
~29 463 9,408 83,953 (78,891) 635 39102 (596) 6,182 (5303) 50,942 18,567 (9,284)
.Commitments and contingencies Total liabilities                                             ~2~17 See notes to financial statements.
(9,278) 29,264 83,953
SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS (In thousands)
~29 Total
Year Ended une 30 1996           1995 Operating revenue:
~au
Sales of electric energy                                           3 349        3 569 Operating expenses:
~a33
Capacity charges                                                   1,011        1,207 Energy charges                                                       844          832 Other operations                                                     342          360 Reimbursement of advances for capacity and energy                     3            12 Total operating expenses                                     2 200         2 411 Operating income                                                   1,149         1,158 Investment income                                                      874          514 Income before debt expense                                   2,023        1,672 Debt expense                                                         2 262        2 810 Costs recoverable from future billings to participants                           (l~K)
~5264
See notes to financial statements.
~2~2
~26 28 Deductions:
Operating expenses Payment of principal Interest paid Payment of principal and interest on escrow bonds Premium and interest paid on investment purchases Other 41476 12,921 1,267 14,904 39 149325 19/86 26@75 14,904 14/25 60,862 39,496 I/06 Total Balance at June 30, 1996 55 764 39
~61 35 z
234
~106 411
~605
~4757
~76 219
~343 874
~13 t~4 536 946 This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust staterncnts.
The balances in the funds consist of cash and Investments at original cost.
These balances do not include accrued interest receivable of $2,169 and $ 1,807 at June 30, 1996 and 1995, respectively, nor do they include total amortized net investment discounts of $2,983 and $2@12 at June 30, 1996 and 1995, respectively.
'Ihese balances do not include unrealized loss on investments in funds available for sale of $2,865 and $1,897 at June 30, 1996 and 1995, respectively.
I
 
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL BALANCESHEET (In thousands)
ASSETS 1996 une 30 1995 Special funds:
Investments available for sale at fair value Advances for capacity and energy, net Interest receivable Cash and cash equivalents 8 9,628 10,119 6
1 997 7,653 11,903 26 2 745 21 750 22 327 Accounts receivable 19 Costs recoverable from future billings to participants Unrealized loss on investments in funds available for sale 7,538 7,299 18 Unamortized debt expenses, less accumulated amortization of $937 and $795 3 307 3 512 Total assets R&2&i f~l'g LIABILITIES Long-term debt 30 981 31 977 Current liabilities:
Long-term debt due within one year Accrued interest Accounts payable and accrued expenses 1,085 489 62 610 500 69 Total current liabilities 1 636 1 179
.Commitments and contingencies Total liabilities
~2~17 See notes to financial statements.
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS (In thousands)
Year Ended une 30 1996 1995 Operating revenue:
Sales of electric energy Operating expenses:
Capacity charges Energy charges Other operations Reimbursement of advances for capacity and energy Total operating expenses 3 349 1,011 844 342 3
2 200 3 569 1,207 832 360 12 2 411 Operating income Investment income 1,149 874 1,158 514 Income before debt expense Debt expense Costs recoverable from future billings to participants 2,023 2 262 1,672 2 810 (l~K)
See notes to financial statements.
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Line 1,199: Line 2,155:
I I
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS (In thousands)
Year Ended une 30 1996        1995 Cash flows from operating activities:
Cash flows from operating activities:
Costs recoverable from future billings to participants               (8  239)    (8  638)
Costs recoverable from future billings to participants Adjustments to arrive at net cash used for operating activities:
Adjustments to arrive at net cash used for operating activities:
Amortization of debt costs Changes in assets and liabilities:
Amortization of debt costs                                               294          288 Changes in assets and liabilities:
Interest receivable Accounts receivable Other assets Accrued interest Accounts payable and accrued expenses 294 288 20 (19) 54 21 (18)
Interest receivable                                                       20 Accounts receivable                                                     (19)         54 Other assets                                                                          21 Accrued interest                                                                      (18)
~594 Year Ended une 30 1996 1995 (8
Accounts payable and accrued expenses                                          ~594 Net cash provided by (used) for operating activities                     38         887 Cash flows from investing activities:
239)
Purchases of investments                                             (22,665)      (11,546)
(8 638)
Proceeds from sale/maturity of investments                             20,705        9,491 Advances for capacity and energy, net                                   1 784       1 415 Net cash used for investing activities                             ~176         ~640 Cash flows from capital and related financing activities:
Net cash provided by (used) for operating activities 38 887 Cash flows from investing activities:
Payment for defeasance of revenue bonds                                               (319)
Purchases of investments Proceeds from sale/maturity of investments Advances for capacity and energy, net (22,665) 20,705 1 784 (11,546) 9,491 1 415 Net cash used for investing activities
Repayment of principal on long-term debt                             ~610         ~860 Net cash used for capital and related financing activities         ~610         ~1179 Net decrease in cash and cash equivalents                                 (748)      (2,706)
~176
Cash and cash equivalents at beginning of year                           2 745        5 451 Cash and cash equivalents at end of year                               ~lr)7       j~27~4 Supplemental disclosure of cash flow information:
~640 Cash flows from capital and related financing activities:
Payment for defeasance of revenue bonds Repayment of principal on long-term debt (319)
~610
~860 Net cash used for capital and related financing activities
~610
~1179 Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (748) 2 745
~lr)7 (2,706) 5 451 j~27~4 Supplemental disclosure of cash flow information:
Cash paid during year for interest (net of amount capitalized)
Cash paid during year for interest (net of amount capitalized)
See notes to financial statements.
See notes to financial statements.
Line 1,218: Line 2,180:
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE YEAR ENDED UNE 30 1996 (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE YEAR ENDED UNE 30 1996 (In thousands)
Operating                                    Debt Advance                                                       Working                  Debt              Service              General Payments             Operating             Revenue             Capital               Service             Reserve             Reserve Funds                Fund                Fund                Fund                Account           Account              Account                Total Balance at June 30, 1995                             S   2410                                                             560             S I 435           S 3   083           S 2876             S 10364 Additions:
Advance Payments Funds Operating Fund Revenue Fund Operating Working Capital Fund Debt Service Account Debt Service Reserve Account General Reserve Account Total Balance at June 30, 1995 S
Investment earnings                                       16                    2                  2                  29                    33                152                    3                  237 Distribution of investment earnings                     193                    (2)              256                  (29)                  (90)              (115)                (213)
2410 560 S I 435 S 3 083 S 2876 S 10364 Additions:
Discount on investment purchases                           85                  43                                                            289                                      211                  628 Revenue from power sales                                                                       3,330                                                                                                    3,330 Distribution of revenues                                                     165              (3,342)                                    3,177 Transfer from escrow for principal and interest payments                             2 393                   147                 251                                     2 433                                     2 382                2 318 Total                                            2 099                  355                                                        5 842                   37               2 383               6 513 Deductions:
Investment earnings Distribution of investment earnings Discount on investment purchases Revenue from power sales Distribution of revenues Transfer from escrow for principal and interest payments Total 16 193 85 2 393 2 099 2
Advances for capacity and energy                           75                                                                                                                                                75 Payment of principal                                                                                                                         610                                                            610 Administrative expenditures                             236                  117                  (5)                                                                                                    348 Interest paid                                                                                                                             1,978                                                          1,978 Premium on investment purchases                                                                                                                                   37                                        37 Payment of principal and interest on escrow bonds                                                                                                                       2 318                                                         2 318 Total                                               311                 117           ~5                                           4 906                   37                                   5 366 Balance at June 30, 1996                                                         238                                     560             ~2;177             ~3083                 ~52     S           S 11 511 This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust statements. The balances in the funds consist of cash and investments at original cost. 'Ihese balances do not include accrued interest receivable of $ 6 and $26 at June 30, 1996 and 1995, respectively, nor do they include total amortized net investment discount of $ 11Z and $ 52 at June 30, 1996 and 1995, respectivdy. These balances abo do not include unrealized loss on investments in funds available for sale of $ 3 and $ 18 at June 30, 1996 and 1995, respectively.
(2) 43 165 147 355 2
256 3,330 (3,342) 251 29 (29) 33 (90) 289 3,177 2 433 5 842 152 (115) 37 3
(213) 211 2 382 2 383 237 628 3,330 2 318 6 513 Deductions:
Advances for capacity and energy Payment of principal Administrative expenditures Interest paid Premium on investment purchases Payment of principal and interest on escrow bonds 75 236 117 (5) 610 1,978 2 318 37 75 610 348 1,978 37 2 318 Total 311 117
~5 4 906 37 5 366 Balance at June 30, 1996 238 560
~2;177
~3083
~52 S S 11 511 This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust statements.
The balances in the funds consist of cash and investments at original cost.
'Ihese balances do not include accrued interest receivable of $6 and $26 at June 30, 1996 and 1995, respectively, nor do they include total amortized net investment discount of $11Z and $52 at June 30, 1996 and 1995, respectivdy.
These balances abo do not include unrealized loss on investments in funds available for sale of $3 and $18 at June 30, 1996 and 1995, respectively.
41-
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL BALANCE SHEET (In thousands) une 30 1996            1995 ASSETS Utility plant:
ASSETS SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL BALANCESHEET (In thousands) 1996 une 30 1995 Utilityplant:
Transmission                                                               S 48,307 General                                                                        I 971 50,278 Less: Accumulated depreciation                                                 846 49,432 Construction work in progress                                                 3 116           39 179 Nct utility plant                                                               52,548           39,179 Special funds:
Transmission General S
Investmcnts available for sale at fair value                                 21,591           32,759 Interest receivable                                                              841            1,246 Cash and cash equivalents                                                      1 548            I 280 23 980           35285 Accounts receivable                                                             1,750            1,963 Costs recoverable from future billings to participants                           1,3.94 Unrealized loss on invcstmcnts in funds availablc for sale                                           51 Prepaid expense                                                                                   2,003 Unamortized debt expenses, less accumulated amortization of $ 1,257 and 8736                                   9 8II8         10 408 Total assets                                                          ~895   5       ~88   889 LIABILITIES Long-term debt                                                                 86 417           86 267 Current liabilities:
48,307 I 971 Less:
Accrued interest                                                               2,588           2,588 Accounts payable                                                                  590              34 Total current liabilities                                                3 178            2 622 Commitments and contingencies Total liabilities                                                     ~895   5         88 889 Sce notes to financial statcmcnts.
Accumulated depreciation 50,278 846 Construction work in progress 49,432 3 116 39 179 Nct utility plant 52,548 39,179 Special funds:
Investmcnts available for sale at fair value Interest receivable Cash and cash equivalents 21,591 841 1 548 32,759 1,246 I 280 23 980 35285 Accounts receivable Costs recoverable from future billings to participants Unrealized loss on invcstmcnts in funds availablc for sale 1,750 1,3.94 1,963 51 Prepaid expense 2,003 Unamortized debt expenses, less accumulated amortization of $1,257 and 8736 Total assets 9 8II8
~895 5 10 408
~88 889 LIABILITIES Long-term debt 86 417 86 267 Current liabilities:
Accrued interest Accounts payable Total current liabilities 2,588 590 3 178 2,588 34 2 622 Commitments and contingencies Total liabilities
~895 5
88 889 Sce notes to financial statcmcnts.
4 I
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Line 1,236: Line 2,214:
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS THREE MONTHS ENDED UNE 30 1996*
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS THREE MONTHS ENDED UNE 30 1996*
(In thousands)
(In thousands)
Operating revenue:
Operating revenue:
Sales of transmission services                                         226 Operating expenses:
Sales of transmission services 226 Operating expenses:
Other operation                                                       213 Maintenance                                                            13 Depreciation                                                          342 Total operating expenses                                             568 Operating loss                                                           (342)
Other operation Maintenance Depreciation 213 13 342 Total operating expenses 568 Operating loss Investment income (342) 410 Income before debt expense 68 Debt expense Costs recoverable from future billings to participants 1 462 0~%~3 See notes to financial statements.
Investment income                                                        410 Income before debt expense                                             68 Debt expense                                                           1  462 Costs recoverable from future billings to participants                                           0~%~3 See notes to financial statements.
* Operations commenced April 1996.
* Operations commenced April 1996.
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Line 1,247: Line 2,224:
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS (In thousands)
Year Ended  une 30 1996          1995 Cash flows from operating activities:
Cash flows from operating activities:
Cost recoverable from future billings to participants                   ~1394 Adjustments to arrive at net cash provided by (used for) operating activities:
Cost recoverable from future billings to participants Adjustments to arrive at net cash provided by (used for) operating activities:
Depreciation                                                               342 Amortization of debt costs                                                 167 Changes in assets and liabilities:
Depreciation Amortization of debt costs Changes in assets and liabilities:
Interest receivable                                                     405 Accounts receivable                                                     213 Other assets                                                         1,977 Accounts payable                                                        556 Net cash provided by operating activities                             2 266 Cash flows from investing activities:
Interest receivable Accounts receivable Other assets Accounts payable Year Ended une 30 1996 1995
Interest received on investments                                                           4,251 Payments for construction of facility                                     (13,208)       (21,310)
~1394 342 167 405 213 1,977 556 Net cash provided by operating activities 2 266 Cash flows from investing activities:
Purchases of investments                                                  (3,264)        (2,725)
Interest received on investments Payments for construction of facility Purchases of investments Proceeds from sale/maturity of investments Reimbursement from WAPA (13,208)
Proceeds from sale/maturity of investments                                14,474        26,078 Reimbursement from WAPA                                                                        83 Net cash (used for) provided by investing activities               ~1998             6 377 Cash flows from capital and related financing activities:
(3,264) 14,474 4,251 (21,310)
Payment of interest on long-term debt Payment for bond issue costs                                                         ~9  (5,093)
(2,725) 26,078 83 Net cash (used for) provided by investing activities
Net cash used for capital and related financing activities                                                               5 102 Net increase in cash and cash equivalents                                       268          1,275 Cash and cash equivalents at beginning of year                               1 280              5 Cash and cash equivalents at end     of year                               ~1~4         ~1280 Supplemental disclosure of cash flow information:
~1998 6 377 Cash flows from capital and related financing activities:
Payment of interest on long-term debt Payment for bond issue costs (5,093)
~9 Net cash used for capital and related financing activities 5 102 Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 268 1,275 1 280 5
~1~4
~1280 Supplemental disclosure of cash flow information:
Cash paid during the period for interest (net of amount capitalized)
Cash paid during the period for interest (net of amount capitalized)
See notes to financial statements.
See notes to financial statements.
Line 1,262: Line 2,243:
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR FNDFD UNE 30 1996 (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR FNDFD UNE 30 1996 (In thousands)
Debt Debt         Service Acquisition  Service      Reserve       Revenue       Issue     Operating Total 3,
Acquisition Account Debt Service Account Debt Service Reserve Account Revenue Fund Issue Fund Operating Fund Total Balance at Junc 30, 1995
Account    Account        Account        Fund        Fund          Fund Balance at Junc 30, 1995       $ 18972     l 4288       $    5916   3,           $  4994                 $    34170 Additions:
$ 18972 l 4288 5916 3, 4994 3, 34170 Additions:
Investment earnings             1,564        286              435                      154                    2,441 Transfer of invcstmcnts                       435            (435)
Investment earnings Transfer of invcstmcnts Rcimburscmcnt from WAPA Transmission rcvcnuc Transfer of monthly tfansnllsslon costs 1,564 80 286 435 435 (435) 360 297 154 297 2,441 80 360 Total 1 644 721 65 154 297 2 881 Deductions:
Rcimburscmcnt from WAPA             80                                                                              80 Transmission rcvcnuc                                                     360                                      360 Transfer of monthly tfansnllsslon costs                                                   297                         297 Total                       1 644       721                         65           154         297       2 881 Deductions:
Construction expcnditurcs Intcrcst paid Premium and intcrcst paid on invcstmcnt purchases Operating cxpenscs 8,536 2,642 2,534 60 8,536 5,176 89 60 Total 8 536 2 642 2 623 60 13 861 Balance at Junc 30, 1996 teuJ 2~00
Construction expcnditurcs       8,536                                                                           8,536 Intcrcst paid                              2,642                                     2,534                     5,176 Premium and intcrcst paid on invcstmcnt purchases                                                                                        89 Operating cxpenscs                                                                                    60          60 Total                       8 536     2 642                                     2 623           60       13 861 Balance at Junc 30, 1996       teuJ 2~00   ~2867         ~5916         s     65     ~2525         ~287       tc   23~0 This schcdulc summarizes the receipts and disbursements in funds required under thc Bond Indenture and has been prepared from the trust statements. Thc balances in the funds consist of cash and investmcnts at original cost. Thcsc balances do not include accrued intcrcst rcccivable of S841 and S1,246 at June 30, 1996 and 1995, rcspcctively, nor do they include total amortized nct invcstmcnt prcmiunls of $ 42 and $ 80 at Junc 30, 1996 and 1995, respectively. These balances do not include unrealized loss on invcstmcnts in funds availablc for sale of S9 and $ 51 at Junc 30, 1996 and 1995, rcspcctivcly.
~2867
~5916 s
65
~2525
~287 tc 23~0 This schcdulc summarizes the receipts and disbursements in funds required under thc Bond Indenture and has been prepared from the trust statements.
Thc balances in the funds consist of cash and investmcnts at original cost.
Thcsc balances do not include accrued intcrcst rcccivable of S841 and S1,246 at June 30, 1996 and 1995, rcspcctively, nor do they include total amortized nct invcstmcnt prcmiunls of $42 and $80 at Junc 30, 1996 and 1995, respectively.
These balances do not include unrealized loss on invcstmcnts in funds availablc for sale of S9 and $51 at Junc 30, 1996 and 1995, rcspcctivcly.
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL BALANCE SHFFT (In thousands) une 30 1996            1995
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL BALANCESHFFT (In thousands)
            ~SFTS Utility plant:
~SFTS 1996 une 30 1995 Utilityplant:
Transmission                                                                     8 171,068 General                                                                                164 171,232 Less: Accumulated depreciation                                                       1 255 Construction work in progress                                                                       ~154 011 Nct utility plant                                                                   169 977         154 011 Special funds:
Transmission General 8 171,068 164 Less:
Investments availablc for sale at fair value                                       62,562           76,235 Interest receivable                                                                  2,285            2,976 Cash and cash equivalents                                                            4 504            4 279 69 351           83 490 Accounts rcccivable                                                                   4,741           4,669 Costs rccovcrablc from future billings to participants                                 4,383 Unrcalizcd loss on invcstmcnts in funds available for sale                               28             171 Prepaid cxpcnsc                                                                                         3,533 Unamortized debt cxpcnscs, less accumulated amortization of 83,582 and $ 2,098                                                 28 123           29 607 Total assets                                                                                     75 481 I.IABILITIFS Long-term debt                                                                       268 005         267 561 Current liabilities:
Accumulated depreciation Construction work in progress Nct utility plant 171,232 1 255 169 977
Accrued intcrcst                                                                     7,884           7,885 Accounts payable                                                                      780              35 Total current liabilities                                                        8 664            7 920 Commitments and contingcncics Total liabilities                                                             ~27t~66            275 481 Sce notes to financial statcmcnts.
~154 011 154 011 Special funds:
I SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS THREE MONTHS ENDED UNE 30 1996*
Investments availablc for sale at fair value Interest receivable Cash and cash equivalents 62,562 2,285 4 504 76,235 2,976 4 279 69 351 83 490 Accounts rcccivable 4,741 4,669 Costs rccovcrablc from future billings to participants Unrcalizcd loss on invcstmcnts in funds available for sale 4,383 28 171 Prepaid cxpcnsc 3,533 Unamortized debt cxpcnscs, less accumulated amortization of 83,582 and $2,098 28 123 29 607 Total assets 75 481 I.IABILITIFS Long-term debt 268 005 267 561 Current liabilities:
Accrued intcrcst Accounts payable Total current liabilities 7,884 780 8 664 7,885 35 7 920 Commitments and contingcncics Total liabilities Sce notes to financial statcmcnts.
~27t~66 275 481 I
 
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS THREE MONTHS ENDED UNE 30 1996*
(In thousands)
(In thousands)
Operating revenue:
Operating revenue:
Sales of transmission services                                           172 Operating expenses:
Sales of transmission services 172 Operating expenses:
Other operation                                                         145 Maintenance                                                              27 Depreciation                                                          1 182 Total operating expenses                                           1 504 Operating loss                                                    1 132 Investment income                                                       1 174 Income before debt expense Debt expense                                                             4 425 Costs recoverable from future billings to participants                                             C~E)
Other operation Maintenance Depreciation 145 27 1 182 Total operating expenses Operating loss 1 504 1 132 Investment income 1 174 Income before debt expense Debt expense 4 425 Costs recoverable from future billings to participants C~E)
See notes to financial statements.
See notes to financial statements.
Operations commenced April 1996.
Operations commenced April 1996.
l SOUTHERN CALIFORNIA PUBLIC POVYER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMFNTAL STATEMFNT OF CASH FI.OWS (In thousands) une 30 1996            1995 Cash flows from operating activities:
l
Cost recoverable from future billings to participants                           (3    4,383)    3 Adjustments to arrive at nct cash provided by (used for) operating activities:
 
Dc preciation                                                                      1,132 Amortization of debt costs                                                           482 Changes in assets and liabilities:
SOUTHERN CALIFORNIAPUBLIC POVYER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMFNTAL STATEMFNT OF CASH FI.OWS (In thousands) 1996 une 30 1995 Cash flows from operating activities:
Interest receivable                                                             691 Accounts receivable                                                               (72)
Cost recoverable from future billings to participants Adjustments to arrive at nct cash provided by (used for) operating activities:
Prepaid expense                                                                3,467 Accrued interest                                                                  (I)
Dcpreciation Amortization of debt costs Changes in assets and liabilities:
Accounts payable                                                                745 Nct cash provided by operating activities                                                 2 981 Cash flows from investing activities:
Interest receivable Accounts receivable Prepaid expense Accrued interest Accounts payable (3
Intcrcst rcceivcd on investments                                                                       11,316 Payments for construction of facility                                               (15,652)         (71,033)
4,383) 3 1,132 482 691 (72) 3,467 (I) 745 Nct cash provided by operating activities 2 981 Cash flows from investing activities:
Purchases of invcstmcnts                                                              (9,184)          (4,627)
Intcrcst rcceivcd on investments Payments for construction of facility Purchases of invcstmcnts Procccds from sale/maturity of investments Reimbursement from O'APA (15,652)
Procccds from sale/maturity of investments                                            23,000          84,113 Reimbursement from O'APA                                                                                    28 Nct cash (used for) provided by investing activities                         ~1838                 19 797 Cash flows from capital and related financing activities:
(9,184) 23,000 11,316 (71,033)
Payments of interest on long-term debt Payment for bond issue costs                                                                       ~31(15,487)
(4,627) 84,113 28 Nct cash (used for) provided by investing activities
Nct cash used for capital and related financing activities                                                                 15 518 Nct increase in cash and cash equivalents                                                   225            4,279 Cash and cash cquivalcnts at beginning of year                                           4 279 Cash and cash equivalents at cnd of year                                           ~449k             S     4 279 Supplemental disclosure of cash flow information:
~1838 19 797 Cash flows from capital and related financing activities:
Payments of interest on long-term debt Payment for bond issue costs (15,487)
~31 Nct cash used for capital and related financing activities 15 518 Nct increase in cash and cash equivalents Cash and cash cquivalcnts at beginning of year Cash and cash equivalents at cnd of year 225 4,279 4 279
~449k S
4 279 Supplemental disclosure of cash flow information:
Cash paid during the period for interest (net of amount capitalized)
Cash paid during the period for interest (net of amount capitalized)
Sec notes to financial statements.
Sec notes to financial statements.
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY hIEAD-ADELANTO PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEhIENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED UNE 30 1996 (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY hIEAD-ADELANTOPROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEhIENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED UNE 30 1996 (In thousands)
Debt Debt          Service Acquisition Service       Reserve    Operating      Issue      Rcvenuc Account   Account       Account       Fund       Fund         Fund         Total Balance at June 30, 1995           $ 36 134   $ 11 793       $ 16 267   $          $ 16 760 $              $ 80 954 Additions:
Debt Acquisition Service Account Account Debt Service Reserve Account Operating Fund Issue Fund Rcvenuc Fund Total Balance at June 30, 1995 36 134 11 793
Investment earnings                 3,217         772         1,196                       517          1      5,704 Transfer of invcstmcnt earnings                  1,196         (1,196)
$ 16 267 16 760 80 954 Additions:
Reimbursement from WAPA                                  13                                                                           13 Transfers to operating fund                                                  451                      (451)
Investment earnings Transfer of invcstmcnt earnings Reimbursement from WAPA Transfers to operating fund Transmission revenue 3,217 13 772 1,196 1,196 (1,196) 451 517 1
Transmission revenue                                                                                    521         521 Total                       3 230       1 968                       452           517         71       6 238 Deductions:
5,704 13 (451) 521 521 Total 3 230 1 968 452 517 71 6 238 Deductions:
Construction expenditures           3,697                                                                        3,697 Intcrcst paid                                    7,264                                   8,505                 15,769 Premium and interest paid on invcstmcnt purchases                                                                      298                   298 Operating cxpcnscs                                                            189                                  191 Total                       3 699       7 264                       189         8 803                 19 955 Balance at June 30, 1996           ~85 663     ~64~7           ~16 267     $    263   ~8474         ~71       ~67   237 This schcdulc summarizes the receipts and disburscmcnts in funds required under the Bond Indenture and has been prcparcd from thc trust statements. Thc balances in the funds consist of cash and investmcnts at original cost. These balances do not include accrued interest receivable of S2,285 and S2,976 at June 30, 1996 and 1995, respectively, nor do they include total amortized nct invcstmcnt premiums of S143 and S269 at June 30, 1996 and 1995, respectively. Thcsc balances do not include unrcalizcd loss on investments in funds available for sale of S28 and S171 at Junc 30, 1996 and 1995, respectively.
Construction expenditures Intcrcst paid Premium and interest paid on invcstmcnt purchases Operating cxpcnscs 3,697 7,264 189 8,505 298 3,697 15,769 298 191 Total 3 699 7 264 189 8 803 19 955 Balance at June 30, 1996
~85 663
~64~7
~16 267 263
~8474 ~71
~67 237 This schcdulc summarizes the receipts and disburscmcnts in funds required under the Bond Indenture and has been prcparcd from thc trust statements.
Thc balances in the funds consist of cash and investmcnts at original cost.
These balances do not include accrued interest receivable of S2,285 and S2,976 at June 30, 1996 and 1995, respectively, nor do they include total amortized nct invcstmcnt premiums of S143 and S269 at June 30, 1996 and 1995, respectively.
Thcsc balances do not include unrcalizcd loss on investments in funds available for sale of S28 and S171 at Junc 30, 1996 and 1995, respectively.


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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL BALANCE SHEET (In thousands) une 30 1996          1995 ASSETS Special funds:
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL BALANCESHEET (In thousands)
Investments available for sale at fair value                           8 250,888     8 249,020 Interest receivable                                                        9220         9194.
ASSETS 1996 une 30 1995 Special funds:
Total assets                                                       ~2~1           $ 2~214 LIABILITIES Long-term debt                                                          $ 242 786     $ 242.107 Arbitrage rebate payable                                                                      77 Accounts payable to Mead-Phoenix Project and Mead-Adelanto Project                                                   6 402         6.632 Deferred credits                                                              2 664        1.141 Current liabilities:
Investments available for sale at fair value Interest receivable 8 250,888 8 249,020 9220 9194.
Accrued interest                                                           8 256         8.257 Commitments and contingencies Total liabilities                                                 ~2)Jgg         ~2M 214 See notes to financial statements.
Total assets LIABILITIES Long-term debt Arbitrage rebate payable
~2~1
$ 2~214
$ 242 786
$ 242.107 77 Accounts payable to Mead-Phoenix Project and Mead-Adelanto Project Deferred credits 6 402 2 664 6.632 1.141 Current liabilities:
Accrued interest 8 256 8.257 Commitments and contingencies Total liabilities
~2)Jgg
~2M 214 See notes to financial statements.  


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL STATEMENT OF CASH FLOWS (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL STATEMENT OF CASH FLOWS (In thousands) 1996 Year Ended une 30 1995 Cash flows from operating activities Cash flows from investing activities:
Year Ended une 30 1996            1995 Cash flows from operating activities Cash flows from investing activities:
Interest received on investments Arbitrage payment Purchases of investments Proceeds from sale/maturity of investments 18,380 (1,868) 18,470 (3,757)
Interest received on investments                                         18,380         18,470 Arbitrage payment                                                                        (3,757)
(1,958) 5 757 Net cash provided by investing activities 16 512 16.512 Cash flows from capital and related financing activities:
Purchases of investments                                                (1,868)        (1,958)
Payments of interest on long-term debt 16 512 16 512 Net cash used for capital and financing activities
Proceeds from sale/maturity of investments                                                5 757 Net cash provided by investing activities                         16 512         16.512 Cash flows from capital and related financing activities:
~16 512
Payments of interest on long-term debt                                   16 512         16 512 Net cash used for capital and financing activities             ~16 512         ~16 512 Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year See notes to financial statements.
~16 512 Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year See notes to financial statements.
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Line 1,324: Line 2,335:
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED UNE 30 1996 (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED UNE 30 1996 (In thousands)
Debt Proceeds          Service     Earnings Account           Account      Account            Total Balance at June 30, 1995                 247 727                       ~1295             249 020 Additions:
Proceeds Account Debt Service Account Earnings Account Total Balance at June 30, 1995 247 727
Investment earnings                     18,208                            172          18,380 Transfer to earnings account           (16,512)                         16,512 Transfer to debt service account                          16 512     ~16 512 Total                         1 696           16.512           172           18 580 Deductions:
~1295 249 020 Additions:
Interest paid                                             16 512                         16 512 Total                                          16 512                         16 512 Balance at June 30, 1996             ~249 42'f                                         ~2%Un g This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust statements. The balances in the funds consist of investments at original cost. These balances do not include accrued interest receivable of 59,220 and $ 9,194 at June 30, 1996 and 1995, respectively.
Investment earnings Transfer to earnings account Transfer to debt service account 18,208 (16,512) 172 16,512 16 512
~16 512 18,380 Total 1 696 16.512 172 18 580 Deductions:
Interest paid Total 16 512 16 512 16 512 16 512 Balance at June 30, 1996
~249 42'f
~2%Ung This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust statements.
The balances in the funds consist of investments at original cost.
These balances do not include accrued interest receivable of 59,220 and $9,194 at June 30, 1996 and 1995, respectively.
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SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLFMFNTAL BAI.ANCE SHFET (In thousands) une 30 1996              1995 ASSETS Utility plant:
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT ASSETS SUPPLFMFNTAL BAI.ANCESHFET (In thousands) 1996 une 30 1995 Utilityplant:
Production                                                                   S   183,309       8 183,309 General                                                                            8 613            7 688 191,922           190,997 Less - Accumulated depreciation                                                  36 622            24 415 155,300           166,582 Construction work in process                                                      3 501            2 488 Nct utility plant                                                             158 801           169 070 Special funds:
Production General S
Investmcnts available for sale at fair value                                     34,170            28,699 Intcrcst rcccivablc                                                                   67                69 Cash and cash equivalents                                                         7 546             8 274 41 783           37 042 Accounts receivable                                                                     945             1,891 Materials and supplies                                                                 3,569            3,679 Costs rccovcrablc ftxun future billings to participants                               31,780            23,063 Unrcalizcd loss (gain) on investments in funds availablc for sale                                           (28)
183,309 8 613 8
Unamortized debt expenses, less accumulated amortization of $ 942 and $ 628                                                   3 090             3 461 Total assets                                                           ~2~72               238 78 LIABILITIFS Long-term debt                                                                     222 444           228 167 Current liabilities:
183,309 7 688 Less - Accumulated depreciation 191,922 36 622 190,997 24 415 Construction work in process 155,300 3 501 166,582 2 488 Nct utility plant 158 801 169 070 Special funds:
Long-term debt due within one year                                                 6,035 Accrued interest                                                                  5,994             5,994 Accounts payable                                                                  5 499            4 017 Total current liabilities                                                   17 528           10 011 Commitntcnts and contingcncics Total liabilities                                                     ~23    ~7            238 178 See notes to financial statements.
Investmcnts available for sale at fair value Intcrcst rcccivablc Cash and cash equivalents 34,170 67 7 546 28,699 69 8 274 41 783 37 042 Accounts receivable 945 1,891 Materials and supplies Costs rccovcrablc ftxun future billings to participants Unrcalizcd loss (gain) on investments in funds availablc for sale 3,569 31,780 3,679 23,063 (28)
l SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS (In thousands)
Unamortized debt expenses, less accumulated amortization of $942 and $628 3 090 3 461 Total assets
Year Ended une 30 1996           1995 Operating revenue:
~2~72 238 78 LIABILITIFS Long-term debt 222 444 228 167 Current liabilities:
Sales of electric energy                                             50 117          50 854 Operating expenses:
Long-term debt due within one year Accrued interest Accounts payable 6,035 5,994 5 499 5,994 4 017 Total current liabilities 17 528 10 011 Commitntcnts and contingcncics Total liabilities See notes to financial statements.
Other operations                                                         314             316 Maintenance                                                          35,760         38,511 Depreciation                                                          9,095          9,095 Decommissioning                                                        3 113          3 112 Total operating expenses                                          48 282          51 034 Operating income (loss)                                                1,835            (180)
~23
Investment income                                                        2 062          1.884 Income before debt expense                                         3,897          1,704 Debt expense                                                           12.614          12 598 Costs recoverable from future billings to participants                 5 8717 See notes to financial statements.
~7 238 178 l
 
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS (In thousands)
Year Ended une 30 1996 1995 Operating revenue:
Sales of electric energy Operating expenses:
Other operations Maintenance Depreciation Decommissioning Total operating expenses Operating income (loss)
Investment income 50 117 314 35,760 9,095 3 113 48 282 1,835 2 062 50 854 316 38,511 9,095 3 112 51 034 (180) 1.884 Income before debt expense Debt expense Costs recoverable from future billings to participants 3,897 12.614 5 8717 1,704 12 598 See notes to financial statements.  


SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS (In thousands)
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS (In thousands)
Year Ended une 30 1996             1995 Cash flows from operating activities:
Year Ended une 30 1996 1995 Cash flows from operating activities:
Costs recoverable from future billings to participants                     (S  8,717)      (S 10,894)
Costs recoverable from future billings to participants Adjustments to arrive at net cash provided by (used for) operating activities-Depreciation Decommissioning costs Amortization of debt costs Changes in assets and liabilities:
Adjustments to arrive at net cash provided by (used for) operating activities-Depreciation                                                                 9,095            9,095 Decommissioning costs                                                         3,113            3,112 Amortization of debt costs                                                       626            610 Changes in assets and liabilities:
Interest receivable Accounts receivable Materials and supplies Other assets Accounts payable 9,095 3,113 626 9,095 3,112 610 2
Interest receivable                                                             2             (59)
946 110 56 1 482 (59)
Accounts receivable                                                            946            (669)
(669) 1,340 81 711 (S
Materials and supplies                                                        110          1,340 Other assets                                                                    56              81 Accounts payable                                                            1  482            711 Net cash provided by operating activities                     6 713           3 327 Cash flows from investing activities:
8,717)
Payments   for construction of facility                                       (1,938)         (1,861)
(S 10,894)
Purchases  of investments                                                    (14,370)        (12,749)
Net cash provided by operating activities 6 713 3 327 Cash flows from investing activities:
Proceeds  from sale/maturity of investments                                    8 867          10 918 Net cash used for investing activities                         7 441           3 692 Net decrease in cash and cash equivalents                                           (728)          (365)
Payments for construction of facility Purchases of investments Proceeds from sale/maturity of investments (1,938)
Cash and cash equivalents at beginning of year                                   8 274            8 639 Cash and cash equivalents at end of year                                     ~Kk               M~>>4 Supplemental disclosure of cash flow information:
(14,370) 8 867 (1,861)
Cash paid during the year for interest (net of amount capitalized)         i~12K             ~>I 'K See notes to financial statements.
(12,749) 10 918 Net cash used for investing activities 7 441 3 692 Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (728)
SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED UNE 30 1996 (In thousands)
(365) 8 274 8 639
Reserve &
~Kk M~>>4 Supplemental disclosure of cash flow information:
Revenue       Operating     Operating         Project       Debt     Debt Service     Revenue Fund          Fund        Reserve           Fund        Service      Reserve      ~Contin ene     Total Balance at June 30, 1995                                     $    1 633                           112     $ 5 994       ~18 025         rt 11 179 ~36 943 Additions:
Cash paid during the year for interest (net of amount capitalized) i~12K
Investment earnings                                 32                                            12                      1,061              537      1,750 Distribution of investment earnings             1,945              (64)                                      (168)      (1,061)            (652)
~>I 'K See notes to financial statements.
Discount on investment purchases                     4              10                                        114                            112        242 Revenue from power sales                       52,933                                                                                                52,933 Distribution of revenues                      (54,914)       38,249                                       14,515                           2,145 Refund from Century Power Corporation                                                            400                                                       400 Total                                                    38 249                            414        14 515                          2 142     55 325 Deductions:
SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED UNE 30 1996 (In thousands)
Payment for construction                                         1,938                                                                                   1,938 Administrative expenditures                                    36,691                                                                                 36,691 Interest paid                                                                                              11 988                                     11 988 Total                                                    38 629                                      11 988                                   50 617 Balance at June 30, 1996                                     ~253         g       5       g     526     3 8 621       ~18 026         ~3 321     r~4~65 This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust statements. The balances in the funds consist of cash and investments at original cost. These balances do not include accrued interest receivable of S67 and S69 at June 30, 1996 and 1995, respectively, nor do they include total amortized net investment discount of $ 69 and S2 at Junc 30, 1996 and 1995, respectively. These balances do not include unrealized loss (gain) on investments in funds available for sale of S4 and ($ 28) at June 30, 1996 and 1995, respectively.
Revenue Fund Operating Fund Operating Reserve Project Fund Debt Service Reserve &
Debt Service Revenue Reserve
~Contin ene Total Balance at June 30, 1995 1 633 112
$ 5 994
~18 025 rt 11 179
~36 943 Additions:
Investment earnings Distribution of investment earnings Discount on investment purchases Revenue from power sales Distribution of revenues Refund from Century Power Corporation Total 32 1,945 4
52,933 (54,914)
(64) 10 38,249 38 249 12 (168) 114 14,515 400 414 14 515 1,061 (1,061) 537 (652) 112 2,145 1,750 242 52,933 400 2 142 55 325 Deductions:
Payment for construction Administrative expenditures Interest paid Total 1,938 36,691 38 629 11 988 11 988 1,938 36,691 11 988 50 617 Balance at June 30, 1996
~253 g
5 g
526 3 8 621
~18 026
~3 321 r~4~65 This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust statements.
The balances in the funds consist of cash and investments at original cost.
These balances do not include accrued interest receivable of S67 and S69 at June 30, 1996 and 1995, respectively, nor do they include total amortized net investment discount of $69 and S2 at Junc 30, 1996 and 1995, respectively.
These balances do not include unrealized loss (gain) on investments in funds available for sale of S4 and ($28) at June 30, 1996 and 1995, respectively.
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Latest revision as of 00:04, 8 January 2025

Southern California Public Power Authority 1995-96 Annual Rept. W/Financial Statements
ML17312B562
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Issue date: 12/31/1996
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TABLE OF CONTENTS SCPPA by Definition Executive Director's Letter Prcsidcnt's Letter The Retail Revolution Operations and Financiais Palo Verde Nuclear Generating Station...

9 San Juan Gcncrating Station Mead-Phoenix/Mead-Adclanto Transmission Projects Hoover Uprating Project Southern Transmission System Legislative Advocacy Report of Independent Accountants Combined Balance Sheet l2 l2 l3 l3 l7 IS Combined Statement of Operations Combined Statement of Cash Flows l9 l9 Notes to Financial Statements Supplemental Financial Information 2I 3I Palo Verde Nuclear Generating Station...

32 Southern Transmission System Hoover Uprating Project Mead-Phoenix Transmission Project Mead-Adclanto Transmission Project Multiple Project San Juan Generating Station 36 40 43 47 5I 53

SCPPA BY DEFINITION The Southern California Public Power Authority (SCPPA) is a joint powers authority formed in 1980 to acquire reliable, cost-efficient electrical generation facilities and transmission systems for its members. The membership includes ten municipal utilities and one irrigation district that deliver electricity to nearly two millioncustomers from northern Los Angeles County to the Mexican border.

Backed by its members'fifnancial strength, SCPPA has issued $8.2 billionin bonds, notes and refunding bonds since its inception, of which $3.6 billion in principal remains outstanding. With these proceeds the SCPPA members have jointly purchased or refinanced interests in generating and transmission facilities throughout the southwestern United States.

SCPPA's primary role has been to secure financing for these projects, but in light of pending electric industry restructuring, SCPPA has increasingly helped its members become more competitive and provided legislative and regulatory advocacy at the state and federal. levels. This advocacy ensures that legislators and regulators willconsider the needs of public power providers in this region as they propose sweeping changes in laws and regulations affecting the electric industry.

Today's radically shifting economic and political climates pose major challenges for public power providers. SCPPA's sound financial basis and cooperative approach to industry problem-solving willhelp its members weather the storm and deliver new benefits to their customers.

SCPPA MEMBERS City of Anaheim City of Azusa City of Banning City of Burbank City of Colton City of Glendale Imperial Irrigation District Los Angeles Department of Water And Power City of Pasadena City of Riverside City ofVernon NEVAOA

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~ Mead-Phoenix Transmission Project

~ Mead-Adelanto Transmission Project Q Palo Verde Nuclear Generating Station Q Hoover Uprating Project Q San juan Generating Station

~ Member Agencies

EXECUTIVE DIRECTOR'S LETTER In last year's message I predicted that this fiscal year would be a watershed period for the nation's public utilities and the events that unfolded proved my penchant for understatement.

Debate about electric utilityrestructuring and competition was highly visible on the U.S. congressional

agenda, and legislation that would direct states to begin retail customer access choice by the end of the year 2000 was proposed. The Federal Energy Regulatory Commission continued their move to ensure that the nation's transmission system is open to all in a fair, nondiscriminatory fashion.

In Californi, discussion intensified and the realities of market transformation began to unfold.

In a landmark decision in December, the California Public Utilities Commission issued a policy decision setting January 1, 1998 as the beginning of direct access for retail customers of the state' investor-owned utilities.The Deregulation Countdown on page 7 further illustrates the timing of the new market scenario.

During this year SCPPA's staff and its member agencies infused their own considerable energy into representing and protecting public power agencies and their customers in the deregulation continuum. I caned these themes to the U.S. Senate when I testified before its Energy and Natural Resources Committee at a restructuring hearing in March. As SCPPA representatives and I visited withMembers ofCongress and staff, we provided them a consumer-owned utilityperspective on the CPUC decision and its impacts, and on proposed federal legislation. These views took on reality for congressional staff members as they toured several SCPPA facilities in April.

Back at home the SCPPA staff worked to reduce project and overhead costs, and to restructure project debt including a move to increased variable rate debt, thereby lowering project costs.

SCPPA members spent this year in high gear, delivering reliable power and quality energy services to their customers, while retooling to meet the demands of the coming open market envi-ronment. The following pages further describe their strategies to reduce costs, increase efficiency, develop new revenue

sources, and communicate with their customers, city administrators, and elected officials. SCPPA has served as a catalyst and resource for these efforts.

p 0

0 Eldon A. Cotton SECRETARY Daniel W.Waters EXECVTIYE DIRECTOR Bill D. Carnahan PRESIDENT Thomas H. MOGuinness ASSISTANT SECRETARY Bernard Y. Palk VICE PRESIDENT Despite the current maelstrom of changing times and markets, SCPPA's mission is becoming progressively clearer. We will continue to support our member utilities'conomic strength and marketing presence as we enter the new millennium.

Daniel W. Waters Ezcunva DiREcroR

PRESIDENT'S LETTER In this era of profound change, SCPPA's benefit is its ability to influence the develop-ment of a new industry structure, ensuring that its member utilities can compete effectively. Two years ago we set a goal of making SCPPA the voice of the Southern California municipal utilities in national forums, and we have made great progress in this regard.

In the past year, SCPPA continued to become more prominent in its spheres of influence at the federal and state levels.

SCPPA projects are critical to its member utilities'ability to compete. Over the past year we member utilities have worked to critically analyze our own operations, with efficiencies and cost reduction as our prime objectives. Our participation in SCPPA-funded projects provides us some of these efficiencies, such as expanding our access to low-cost power sources.

In addition to its advocacy and financial benefits, SCPPA helps member agencies develop common strategies, including how to establish Competition Transition Charges. SCPPA serves as a forum for identifying interacfive issues and ferreting out solutions.

Aided by our SCPPA membership, our customers will continue to reap the benefits of local control of public utilities. We know our customers, operate our own generation and transmission system, and can provide more opportunities for value-added energy services. These attributes will make the crucial difference as we head into the coming market environment.

BillD. Camahan PREsroHNr

THE RETAILREVOLUTION In March 1896, an enterprising businessman bought a franchise from the CityofLos Angeles for

$100, permitting the operation of a power system within the city. He and his partners had built a small generating plant outside the citylimits the previous December that would supply the proposed system. Since this franchise was to expire within two weeks, he and his three partners, along with their four employees, put on their overalls and feverishly strung wire through the streets and over rooftops of the city.At4:55 p.m. on April14, 1896, the first electric lights litup the City Hall tower.

This tiny company owned the exclusive right to sell power to its customers, along with the exclusive responsibility to maintain near-perfect service and develop new power supplies to support the explosive growth to come.

This scenario was repeated in burgeoning cities throughout Southern California in the 1890s. Small companies built and operated generation resources and transmission infrastructure, and kept up with the insatiable thirst for power ofa population fresh off the new trains from the east.

Some of these cities later bought the electrical systems within their boundaries, acquiring the same exclusive rights and responsibilities to their customers. To purchase the new generation and transmission systems they needed, they would subsequently pool their financial resources in the Southern California Public Power Authority.

- THE COMPETITION TRANSITION CHARGE (CTC)

Reeonnfing the Past toith the Future Under tho proposed CTC, consumers who choose to change electricity suppliers would pay a monthly surcharge on their electricity bill.The purpose of this surcharge ls to ensure that the cost ofretiring the debt on exisdng power, infrastructure does not shift to the customers who remain with their uuhty. In many cases, the remaining customers are likelyto be residential and small business customers, while the ones who change suppliers willbe the large commercial/

industrial customers.

In March 1996, descendants ofprivate companies like that firstprivate partnership filed to divest themselves of their generating plants voluntarily. This followed on the decision the previous December by the California Public Utilities Commission to open market access to the power infra-structure initiated 100 years ago. Afew weeks later, inApril1996, these private power companies filed to create a Power Exchange, into which they would sell their generation, and an Independent System Operator to operate and manage the state's transmission system.

Custome Served:..........

Power Generated and Purchased (In Hegawatt.Hours)

Self-generated Purchased.............

Total...............

Transmhslon (In mlles)

Total Revenues (000's).......

Operating Costs (000's)

I04,805 880,7 I5 l,973, I I0 2,853,825 I>417

$ 246,479

$ I97,895 clTY OF ANAHEIM As the City's sole power provider for more that l00 years, tho Anaheim Public Utilities Department has now positioned Itselffor dereguladon and competition. In I4arch 1996, cominerclal and industrial customers saw a rato decrease of up to five percent.

Reslden.

tlal rates remained stable, already set approximately 25 percent lower than thoso In neighboring communities. Taking advantage of a unique opportunity, the Department entered into a landmark publicfprivate partnership to utilize Its fiber optic cable This partnership willpro-vide the community with access to a VnlversalTelecommunications System In I997.

The municipal power companies, although not directly regulated by the CPUC, willparticipate and compete in this market-based environment... a whole new world.

wHv nEREaumTE7 Historically, the regulatory compact provided exclusive service territories and rates sufficient to cover utilities'costs. In the 1970s, utilities were facing demand growth of seven percent per year, and were forbidden by federal law from burning natural gas in utilityboilers. This led to investments in nuclear and coal fueled generating plants.

In recent years the California government mandated investment in renewable energy sources and promotion of energy efficiency. In this era the utilities provided a complete electric system. They also had the obligation to plan and develop facilities to cover future electric needs and were accountable for near-perfect service to all customers. As a result of the move to protect the environment and promote renewable resources, investor-owned utility gOU) rates in California were 50 percent higher than the national average. The rates of consumer-owned utilities like the SCPPA member agencies were generally 15 to 30 percent lower than those of the IOUs.

These high rates are driving the move to deregulation in Californi.

New technology enables new projects to generate electricity at lower cost using relatively inex-pensive natural gas. At the same time, global economic forces are pressuring California's industries to become more competitive. These customers want the immediate benefit of the new generation technology and lower electricity bills.

In the new world of deregulated power supply, industrial customers willhave access to an open market in which they can buy electricity from the lowest bidder.

9dEh5aaR AaEPgciES IN ACTloN The eleven SCPPA member agencies have been planning for the new market transformation for the last few years. This past fiscal year has seen the most active

PASSWORDS TO A NEW ERA OVARY Ii Five.year phase-In iirect retail access for IOUs ins: Largo customers may ose alternate generation pliers. IOUs must bid all eratlon into Power Exchange satisfy customers'nergy ds by buying from the Power hange. Customers choosing mate suppliers pay CTC.

DEREGULATION COUNTDOWN Direct retail access for all customers begins.

IOUs no longer must bid generation into the Powci Exchange.

CTC ends.

2003 National Energy Policy Act gives FERC authority to order open transmission access.

AGGREGATORS - Brokers who seek to bring together

, customers to create a "load" so that they can buy power in bulk, making a profit on the sale.

COMPETITIONTRANSITION CHARGE (CTC) - A non-bypassable fec paid by retail customers to their former power supplier when taking service from an alternative supplier. This fee reflects the difference between a stranded asset's market price and its cost.

The purpose Is to avoid cost shifting, and to enable utilities to retire debt and compete fairly.

COST BASED RATEMAKING Regulated rates based on costs expended.

COST SHIFTING-Moving cost Increases or decreases to classes ofcustomers, a.g. to residential from industrial or to commercial from residential.

DIRECT ACCESS - Abilityof a power producer to sell directly to thc retail customer.

ructurlnglfunctlonal ndling. IOUs to file icatlons to transfer

e. CPUC to ensure al consumer protection ores are in place.

li + y p

0 MARCH: IOUs apply for voluntary divestiture of 50 percent offossil generation.

APRIL Draft of ISO/Power Exchange filingavailablo to stakcholders. IOUs file proposals to establish ISO and Power Exchange.

JULY: IOUs apply for performance-based ratemaklng.

CPUC Issues draft rulemaklng envisioning futuro where customers choose among competing generation pioviders, and performance-based ratcmaking replaces traditional castoff-service ratcmaklng.

X995 MARCH: FERC issues Notice of Proposed Rulemaklng (NOPR) proposing significant changes in transmission scrvicc regulation.

Goal: to deny transmission facilityowners unfair advantage over competitors.

MAY: CPUC issues proposal that electric gcncrators should sell power to independent system operator (ISO), which would distributo power to Californians at lower price than currently paying. A new Power Exchange would create a wholesale power pool where all suppliers could sell electricity according to established competitive bidding procedures.

DECEMBERi CPUC adopts final policy which Includes the following:Creates a Power Exchange starting Jan. I, I 998. Initiates direct access for retail customers with five-year phase-In and proposes competition transition charge (CTC). Creates ISO for the trans-mission grid. Develops performance-bascd ratemaking for IOUs. Requires real-time rate and time-of.usc rate options.

INDEPENDENT SYSTEM OPERATOR (ISO)-

Independent manager of trans-mission lines which assures safe and fair transfer of electricity from generators to distribution companies INTEGRATED UTILITY A company that provides a complete electric system, generation transmission and distribution services, for Its customers.

PERFORMANCE BASED RATEMAKING(PBR)

Regula(ed rates based on performance objectives, not on actual costs.

POWER EXCHANGE (PX) - A spot prico market for electricity into which power generators could sell their electricity and from which retail and wholesale customers could buy.

RESTRUCTURING Reconliguring tha market structure by eliminating tha monopoly on the essential func-tions of an electric company.

RETAILWHEELING Tile ability of generation companies or brokers to sell directly to retail customers, utilizing regu-lated transmission lines and the distribution services of existing utilitycompanies.

STRANDED INVESTMENTOR STRANDED ASSETS Gcncration facilities, owned by existing utilitycompanies, that produce electricity at above-markct marginal prices.

UNBUNDLEDRATES Separate itcmlzcd charges for generation, transmission, distrib-ution, and other services.

UNBUNDLED SERVICES Customer can select which services they want and which company provides them WHOLESALE WHEELING Selling electricity to wholesale buyers for resale to retail customers

fulfillmentof their transformation plans to date. The agencies have put significant time and effort into many of these activities:

~ Communicating with city councils, utility boards, and major customers about the deregulation process, its implications, and the member agencies'preparation for it.

~ Downsizing and reorganizing staff.

~ Transforming from engineering-based to customer-focused corporate culture.

~ Becoming more familiar with customer needs and planning new products and services.

~ Aggressively cutting costs while maintaining service reliability.

~ Preparing new unbundled and time-of-use rate structures.

~ Working on reducing transfers to their cities'general funds.

~ Renegotiating power contracts to cut costs.

~ Meeting off-balance sheet debt obligations.

~ Pursuing revenue enhancement opportunities, such as leasing poles and conduit for fiber optics and other telecommunications activities.

~ Adopting a Competition Transition Charge.

~ Reducing project operating and maintenance costs.

~ Renegotiating fuel contracts.

~ Reducing debt service by refinancing at lower interest rates.

~ Moving to more variable rate debt.

~ Pursuing aggressive legislative advocacy.

JOSEPH FI HSV Customers Served:.........

Power Generated and Purchased (in Hegawatt. Hours)

Self.genensted:..........

Purchased:.............

Sales Recall:

Wholesale:

Total Revenues (000s):.......

Operating Costs (000s):......

rVrued lted i4 422 220 202

$ 23

$ 20 clTY oF AzvsA Tho city's electric I was established ln I 898, and formost history Azusa purchased electricity w sale from Southern California Ed Since tho mid.l980s, through succr litigation against Edison on transmi access, Azusa began to obtain short long.term contracts withother utiliti well as from SCPPA, by particlpath Palo Verde Nuclear Generadng Se Hoover Hydroelectric Plant, and San Generating Station Unit¹3. By havln, ability to diversify its power supply ol tlons, Azusa has maintained its retail i

at tho l983 level.These compedtivo i

w/IIhelp tho city make a less stressful sltlon toward tho deregulated m'nvironment.

set PA JN AcTJON The last three items above are the particular expertise and benefit that SCPPA brought its member agencies during this fiscal year. Moreover, SCPPA staff members have adopted the new streamlined business atmosphere of the member agencies by"doing more with less" in all aspects of operations. Ithas been a year of unprecedented energy and accomplishment.

PAULTOOR OPERATIONS AND FINANCIALS CITY OF OAHHIHG As ofOetober 31, 1996 SCPPA BONDS Hoover Uprating Project Southern Transmission System Project Seruor Uen Bonds Subordinate Uen Bonds'alo Verde Project Senior Uen Bonds 1992 Subordinate Uen Bonds'ubordinate Uen Bonds'ead-Adelanto Transmission Project Insured Refunding Bonds'onrefunded Bonds'ead-Phoenix TransmLsion Project Insured Refunding Bonds'onrefunded Bonds'ultiple Project'an Juan Unit 3 Project'stimated Iveighted Average Cost ofCapitatt

~)

6.11 432 SAO SA8 6.21 5.12 Bond Ratings Standard &

Ibor's Aa Aaa/VMG1 AA-AAA/A-1+

A1 Aaa Aaa/VMIG1 AA-AAA AAA/A-1+

Aaa A

A Aaa AAA A

A AAA hfood~slnvestor Customers Served:.........

Power Generated and Purchased (In Megawatt-Hours)

Self~en eratedt Purchased:.............

Total...............

Transmission (in miles)

Total Revenues (000s):.......

Operating Costs (000s)I......

9,0$ 0 0

I I7,879 I I7,87 I l22

$ I3,230

$ I2,7$ 0 Established ln I 9 I3,the Banning electrical system now serves an area of approxi-mately 2I square miles. The city owns a pordon of San Juan Unit 3 and a portion of Mead Adelanto and Mead-Phoenix transmission lines. In addition, the city owns a distribution system and four sub-statlons to serve the customers. Being a full service city, Banning's load mix is strengthened by Industrial customers, with more Industrial projects on the way.

Major distribution system improvements are also ln progress.

'nsured; 1991 Suhndinate Van'able Rate Bonds QMBAC)t1996 Subordinate Snies A Bonds (MBIA)/1996Subordinate van'able Rate genes B Bonds (ESA).

IInsund: 1992 Senior IfmBonds QMBAC); 1993 Subordinate Bonds (IGIC); 1996 Suhndinate Snies A Bonds QAIBAC),'996 Subordfnate Vanabie Rate Senes B and C Bonds QI(IBAC).

IInsund: 1994 Sen'es A Bonds (AMBAC),

Unmmmittof bond promds eecund by a guarantmi rate Investment contract.

IInsund: 1993 genes A Bonds (MBIA).

IAilgenemtion bonds: 466%; ali transmissum bonds: 512%; eomhned gennntion and transmission: 500%

During the fiscal year, SCPPA continued to monitor the financial markets and address opportu-nities to reduce its fixed interest costs.

SCPPA refunded $222.2 millionin PaloVerde Project bonds which were originallyissued in 1986 and 1987. The 1996 refunding bonds consisted of sales of $152.9 millionin Series Afixed rate bonds in February, and $58.9 million in Series B variable rate obligations in April.These insured revenue bonds willproduce estimated present value savings of $29.5 million, or 14 percent of the refunding bonds.

As the fiscal year ended, SCPPA was working on a similar two-part refunding for the Southern Transmission System, and an additional variable rate issue for Palo Verde.

Following is a status report on SCPPA's generating and transmission projects.

PALO VERDE OPERATIONS PALO VERDE NUCLEAR GENERATING sTATIDN (PvNGS)

Ten SCPPA members (all but the City of Anaheim) share a 5.91 percent interest in the three units ofPVNGS, Unit 1 Unit 2 Unit 3 Generation (Millionsof MIVHs) 9.8 9.2 Ca(tacity Utiiuation

(%)

199$ 90 OPERATIONS entitling them to 225 megawatts of power. SCPPA continues to Agg"ga<<

Industry average 69.9

work with the operating agent, Arizona Public Service (APS), to increase output and lower costs in order to make Palo Verde a competitive and dependable resource.

Palo Verde began a reengineering of work processes and organization in September 1993. Thus far, the reengineering effort has yielded lower costs, higher output, higher ratings by the Nuclear Regulatory Commission (NRC) and the Institute of Nuclear Power Operations (INPO), shorter refueling outages, and better teamwork and morale.

Ckieadhr Year 1993 1994 1995 per klVh 2.02 1.93 1.61 PRODUCTION COST I

>>>dhkiswmcr N>>ch>>cr>>ce v.

< l.-

~ >

PaloVerdo's Spring l 996 refueling outage for Unit 2 was completed in a record 49 days.

I I

~

c INPO conducted a two-week evaluation of PVNGS in October 1995 and issued its first "1" rating, indicating that PVNGS achieved the highest level of exceHence in nuclear plant operation. The AOIIAIOY SYASSI t>>I

') r, i);.,Ikj>

Customers Served:.........

Power Generated and pe>chased (ln Hegawatt-I4ours)

Self.generated Purchased.............

Total Transmission (In Miles).......

Total Revenues (000'I).......

Operating Costs (000's)

I0 I,078 928,0 I I I,029,098 398 8

94,430 8

93>744 clTY oF nunaatex Burbank's Public Service f3epartment began serving cus-tomers In I 9 I3,and installed onwlte gen-eration ln response to a surge in industri-al and residential growth In tho 1940's and I 950's.Today the city receives power from three SCPPA projects, the Bonneville Power Admlnhtratlon, as well as firm and Interruptible supplies from other utilities and government agencies.

high rating is expected to reduce PVNGS'insurance costs by nearly $1 millionper year.

The NRC's latest Systematic Assessment ofLicensee Performance (SALP) report gave PVNGS ratings of"1"in Operations, Maintenance, and Engineering, and"2>vin Plant Support. "1"is the highest rating, and represents superior safety performance which exceeds NRC standards. In the previous assessment period, PVNGS received "2" ratings in all four categories. The NRC noted that APS has established new programs and processes necessary to achieve and sustain superior performance.

THOMAS K CtARKE Corrective measures implemented following a tube rupture in one of Unit 2's steam generators in 1993 have allowed operation at full capacity, but the operating agent has recommended replacement of unit 2's two steam generators, perhaps within the next ten years, due to safety and economy reasons. If the co-owners of PVNGS decide to replace the steam generators, SCPPA's share of the cost is estimated at approximately $9 millionand would be expended over approximately six years.

One owner of PVNGS, El Paso Electric Company, has been under bankruptcy protection since 1992, and filed its Fourth Amended Stand Alone Plan Customers Served:.........

15,932 Power Generated and Purchased (in ldegawatt.Hours)

Sclf~ncratcd Purchased.............

Total..............

~

~

Transmission (ln miles)

Total Revenues (000's).......

Operating Costs (000's) eunaudited 0

241,582 24 I,582 23

$ 26,072e

$ 24,60 Ie crrv os cotTDH The Colton munidpal electric utility was established in I895, eight years after city incorporation. Since I986,the electric utilityhas changed from being solely dependent on Southern California Edison for its purchased power to being actively engaged in purchasing power from several different sources, achieving significant cost savings in the process.

in September 1995. The Bankruptcy Court approved the plan, and El Paso emerged from Chapter 11 bankruptcy on February 12, 1996. Allof El Paso's obligations regarding PVNGS during the bank-ruptcy period have been met.

sAN JUAN oPERATIQNs San Juan Unit3 continued to be a dependable resource for the five SCPPA members (Azusa, Banning, Colton, Glendale, and Imperial Irrigation District) who own a 41.8 per-cent share of the unit through SCPPA.

IARD Ya PAtK omen Served:.........

irGencratcd and Purchased legawatt.Hours)

If.generated rchased.............

smhslon (in miles)

IRcvenues (000's).......

rating Costs (000's) 82,57 I Id3,499 939,096 I,I02,595 d9 98,020 85,026 os otsHDAta Incorporated In l 906, idalo purchased Its electric utility In

', obtaining power from outside sup-

s. It received Its first power frotn ver Dam ln I 937 and inaugurated thc unit of its own steam generating t In l94I. Now called the Grayson cr Plant, this facility today has eight iratlng units. Glendale continues to hase 85 percent of Its power from ilde sources.

A second Interim Invoicing Agreement further encouraged high capacity factors and lower per unit fuel costs. Despite the major scheduled maintenance outage in the spring, SCPPA members received nearly 1.5 million MWH from San Juan in FY 1995-96.

Installation of a new limestone scrubber system for the removal of sulfur

~ dioxide was approved late in the fiscal year. Besides improving emissions control, the three-year project willsave SCPPA $3 millionper year in operating and main-tenance costs.

Both the operating agent (Public Service Company of New Mexico) and the

coal supplier are actively exploring other ways to reduce costs and make San Juan Generating Station a competitive resource for its owners MEAD-PHQENIx/MEAD-ADELANToTRANsMIssloN PRDJEcTs After more than a decade of plan-ning and two and a half years of construction the Mead-Phoenix and Mead-Adelanto Transmission Lines went into commercial operation in April 1996. These two 500-kV AC transmission lines will cany power between the Phoenix area, the Las Vegas area, and Southern California. Nine San Juan Gonaratlng Station SCPPA members own roughly one-fifth ofMead-Phoenix and one-third ofMead-Adelanto through SCPPA.

HoovER UPRATING PRoJEcT The Hoover Uprating Project, which increased the rated capacity at Hoover Power Plant by 35 percent, was declared complete this year. Nine SCPPA members (Anaheim, Azusa, Banning, Burbank, Colton, Glendale,

Pasadena, Riverside, and Vernon) participated in the uprating and have obtained entitlements totaling 127 MW of capacity and approximately 143,000 MWHper year in allocated energy. The cities ofAnaheim, Riverside, Burbank, Azusa, Banning, and Colton financed their participation through SCPPA.

Two issues which may affect operations at Hoover are the proposed sale of the Federal Power

Marketing Administrations (PMAs) and possible required mitigation of effects on endangered species in the lower Colorado River area. These issues are discussed under Legislative Advocacy.

souTHERN TRANshIissloN SYSTEM As usual, the Southern Transmission System (STS) continued to operate at or above design parameters, transmitting 11.3 mil-lion MWHof power over its 488 miles, compared with 12 millionMWHin fiscal year 1994-95. The line operated at 70.5 percent of capability, with 99.53 percent availability. STS, a a 500-kV DC transmission line and associated converter stations, moves power between the Intermountain Converter Station in Utah to the Adelanto Converter Station in Southern California.

KENNETH S MOILER IMPERIALIRRIGATION DISTRICT IID entered the power Industry In l936 and today serves a peak load of 640 NW with 790 NW of generating resources.

Among IID~ned resources are 24 NW of low head hydro units along the All American Canal, 307 NW of gas-fired steam and combined cyde units, and l62 NW of peaking gas turbines. In addition to IID's share of SCPPA resources com-prislng l04 NW at San Juan and l4 NW at Palo Verde, IID has 179 NW of other resources under long-tenn purchase con-tracts.

86,870 Customers Serve>h........

Power Generated and Purchased (In Negawatt-Hours)

Self-Generated.........

774,587 Purchased...........

I,893,599 Total...............

2,668,I86 Transmission Facilities (in Miles) l,637 Total Revenues (000's)..... $

I97,9 I7 Operating Costs (000's).... $

I77,624 LEGISLATIVEADVOCACY In the past year, SCPPA played its most crucial role to date in representing public power issues in Washington, D.C. By year end it had also made plans to maintain a continuous presence in the California legislature. The followingexamples underscore the value ofSCPPA's advocacy in Congress.

ELEcTRlc UTILITY INDUsTRY REsTRUcTURING Discussions about electric utility restructuring 4 A> COTTON li'NCEIXS DEPARTMENT OF WATER AND In 19I6, the City of Los Angeles I distributing electric power pur-id from the Pasadena Municipal

r Plant, and the following year
Orated its firstgenerating capacity at Francisqulto Power Plant No. I.

22 the city purchased thc remaining butlon system ofSouthern California

>n Company within the city limits. It Irthc largest Inunlcipally owned elec-itilityIn the nation. During l995-96 It rwcnt a major business restructuring Iss to prepare for upcoming dcrcgu-I

>mers Servcdi........

I,350,807 rGeneratcd and Purchased egawatt.Hours)

I'-generated.........

2I,848,8I6 chased............

7,079,3 I3 al...............

28>928,I29

,mhslon (ln miles).....

3,743 Revenues (000's)......

$ l,946,850 sting Costs(000's).....

$ I,625,753 and ways to increase competition in the industry were prominent on the congres-sional agenda in 1996. SCPPA was actively involved in this federal restructuring debate. Duringvisits with Members of Congress and staff inWashington, D.C., and an Aprilcongressional staff tour of several SCPPA facilities, SCPPA representatives discussed the effects of the California restructuring on municipal utilities, and SCPPA's view that federal legislation would be premature at this'time. In addition, Executive Director Dan Waters testified for SCPPA and the American Public Power Association on March 29 at a restructuring hearing held by the Senate Energy and Natural Resources Committee.

Rusus HICHTOWER Customers Scrvcd:.........

Power Generated and Purchased (ln Megawatt. Hours)

Sell-generated Purchased Total Transmission Facilidcs (in Miles).

Total Revenues (000's).......

Operating Costs (000's) 58,732 I85,289 984,0$ 7 I ~ I69,346

$7

$ I I0,975

$ 9$,654 clTY DF FAsADEHA Established In 1906, tho city built its first electric generating steam plant In I907 and took over opera-tion of its municipal street lighting from Edison Electric. In 1909, Pasadena began the extension of its operations to com-mercial and residential customers that resulted In the replacement of all Edison electric service In tho city by l920. In I995.96, Pasadena purchased approxi-mately 85 percent of its power needs.

Utilityrestructuring and consumer choice issues are likelyto be at the top of the energy agenda in the 105th Congress. SCPPA willcontinue to play a role in the development of legislation as the restructuring debate moves forward next year.

THE NUcLEAR wAsTE PQLIGY AcT With a 5.91 percent interest in the PaloVerde Nuclear Generating Facility, SCPPA has a keen interest in pending legislation to reauthorize the Nuclear Waste Policy Act of 1982, with amendments.

Passage of these proposed amendments would provide solutions for waste generated at the station at an interim nuclear waste disposal facility by 1998 and later at a permanent disposal site atYucca Mountain, Nevada. The Senate billwas eventually approved, but a veto threat from President Clinton and strong opposition from the Nevada delegation stopped efforts to pass the legislation this year.

PowER 9dARKETINa AotdiNISTRATIoNS In its early years the Clinton administration attempted to auction federally owned power marketing administrations (PMAs) for a one-time reduction in the federal deficit. One PMA earmarked for sale was the Western Area Power Administration (WAPA),

which provides power to most SCPPA members. This proposed sale would privatize the Hoover hydroelectric project, the Parker and Davis power plants, and their related transmission facilities. Sale of the PMAs would negatively affect public power operations unless the sales are made to existing contractors. Although no serious PMA auction effort surfaced in 1996, the federal power program was carefully scrutinized, and many legislators remain staunch advocates of privatization.

ENI3ANaEREI3 SPEciES ACT REAUTHoRIXATIoN Republican leaders named reauthorization of the Endangered Species Act as a top legislative priority, but their legislation immediately met opposition from environmental groups, Democrats, and many Republicans.

Fearing anti-environmental sentiment for the GOP, its Customers Served:

Power Generated and Purchased (In Megawatt. Hours)

Self~ncratcd Purchased.............

Total Transmhsion (In miles)

Total Revenues (000's).......

Operating Costs (000's) 29

$ I7 5 I6 BILL Do CARHAHAH l

~

clTY oF RlvfnsIDE Rlversldo Pl Utilities is posltlonlng Itself to offer t petltive rates ln the new dercgul environment.

Power and transmh costs constitute the bulk of cha passed on to our customers thrI rates. Cost reduction and rcstructII efforts at SCPPA have had slgnlfi impact on Riverside Public Utlli efforts in meeting our lower ope cost targets. Additional efforts, espc at Palo Verde Iqucicar Gener.

Station, will be required for Riversid compete ln future years.

leadership kept the legislation from being brought to the House floor for a vote this year. SCPPA continues to support ongoing voluntary efforts by California, Arizona, Nevada, and the Department of the Interior to protect endangered species in the Lower Colorado River region. These agencies are proceeding on the assumption that there willbe no significant changes to the Endangered Species Act in the future.

TAx-ExEIuiPT FUNDING Concentrated efforts by SCPPA members and the public power community

~'

I; er Dam to educate Members of Congress and staff of the value of tax-exempt financing provided a needed advantage in 1996. Investor-owned utilities gOUs) have opposed tax-exemption for public power entities, claiming that this status would give public power an unfair advantage under deregulation. Despite IOU attempts to restrict tax-exempt financing in 1996 budget reconciliation legislation, no such proposals were approved.

RENEwABLE ENERGY PRDDUcTIDN INcENTIYE The Department of Energy's Renewable Energy Production Incentive (REPg provides incentive payments to KENNETH Je DE DARIO Customers Served:.........

Power Generated and Purchased (in Megawatt-Hours)

Selpgenerated Purchased........,...,

Total Transmission (in miles)

Total Revenues (000's)

Operadng Costs (000's)

~Unaudited 2,040 676 l,077,823 l,078,499 2.4

$ 50, I99e

$ 37, I 62t'lTY oF YERNQN Vernon's Light and Power Department began serving indus-trial'customers in !933, with completion of its diesel generating plant. In addition to its own power from diesel units plus recently Installed gas turbines, Vernon now receives power from Palo Verde, Hoover, and various utilities, including APS, CDWR, SRP, BPA and Edison.

energy providers who generate energy from such sources as wind, geothermal sources, and landfill gas. SCPPA and other REPI supporters obtained last-minute funding for the program during the fiscal year 1996 appropriations process. SCPPA member City of Glendale received the largest single payment of$946,921 for more than 60 millionkilowatt-hours ofpower generated during 1995 at its Grayson landfill gas-fired facility. Intense efforts by SCPPA and other REPI supporters established fiscal year 1997 incentives as a major bipartisan platform during the appropriations debate.

A)e; g>C" N

'js A(lj 4

Br'delanto Converter Station is the western terminus oftho Southern Tranmission System.

PERCENTAGE OF SCPPA MEMBER PARTICIPATION IN SCPPA'S INTEREST PALO VERDE PROJECT HOOVER VPRATIHO PROJECT HEAD ADELAHIO PROJECT HNA~

PRO/ECI SOUTHERH TRAHIHUNIOH NVNTEH PROJECT NAHJVAH PROJECT (OX (0%

u(

NP(LNN LllQ LNQ(5 ND(ONL NINON(

OX(NN(

((LNR (1X BDO NN(5D(

N(DDN QNJNQ QBO(lf JL(ONL (LIXMNJ NYBM(

(11(X 0

NINNNN I Nmx NNNUN 1L(L((NL LN(((5 LNINBN LML QBDIL(

LINENS QLNN ts(X BO0

REPORT OF INDEPENDENT ACCOUNTANTS September 10, 1996 To the Board ofDirectors of the Southern California Public Power Authority In our opinion, the accompanying combined balance sheet and the related combined statements of operations and of cash flows present fairly, in all material respects, the financial position of the Southern California Public Power Authority (Authority) at June 30, 1996 and 1995, and the results of its opemtions and its cash flows for the years then ended in conformity with generally accepted accounting principles. These financial statements are the responsibility of the Authority's management; our responsibility is to express an opinion on these financial statements based on our audits. We conducted our audits of these statements in accordance with generally accep'ted auditing standards which require that we plan and perform the audit to obtain reasonable assumnce about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation. We believe that our audits provide a reason-able basis for the opinion expressed above.

In our opinion, the accompanying separate balance sheets and the related sepamte statements of cash flows of the Authority's Palo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project, Multiple Project Fund and San Juan Project and the separate statements of operations of the Authority's MoVerde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project, and San Juan Project present fairly, in all material respects, the financial position of each of the Projects at June 30, 1996, and their cash flows, and the results ofopemtions ofthe Authority's PaloVerde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project and San Juan Project for the year then ended in conformity with generaHy accepted accounting principles. These financial statements are the responsibility of the Authority's management; our responsibility is to express an opinion on these financial state-ments based on our audits. We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.

We believe that our audits provide a reasonable basis for the opinion expressed above.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.

The supplemental financial information, as listed on the accompanying index, is presented for purposes of additional analysis and is not a required part ofthe basic financial statements. This information is the responsibility ofthe Authority's management. Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairlystated in all material respects in relation to the basic financial statements taken as a whole.

Price Waterhouse LLP Los Angeles, California

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY COMBINED BALANCESHEET tin thousands)

ASSETS June 30, 1996 Mo Itansn2issu7n Hoooer Mead-Mead-Mutt2)7tc San June 30, Verde System I!puting Phoenix BMttanto Project juan 1995 project ptoj62t pn7jeet project project F~

Projnt Thtal Xta!

Utilityplant:

Production Transmission General S

613,608 14,146 674,606

~569 18 893 S

171,068 48,307 164 1 971 183@09 8 613 S

967985 795080 737,223 689,447

~3046 29155 Less - Accumulated depreciation 630+23 693,499 250 021 194 127 S0,278 171,232 846 1 255 191,922 1,737,254 1513,682 36622 ~48 871 418688 Construction work in progress Nudear fuel, at amortized cost Net utilityplant Spedal funds:

Available for sale at fairvalue (Note 2):

Decommissioning fund........

Investmcnts Escrow account - Came series Advance to Intennountain Power Agency.

Advances forcapacity and energy, net Interest receivable Cash and cash cquivalcnts 33,474 11S,746 102,842 343,898 19~

1,512 67879 2,169 90324 380+02 499,372 9+03 13 225 49,432 169,977 3,116

~5'48 169977 155,300 1,254$ 83 1,094,994 3,501 16,120 206/73 13225 ~1716 158 801 1,283 728 ~114.283 9,628 10,119 6

841 2,285 1997 ~18 ~4N 9,220 67 7546 33,474 597,427 343,898 19/50 10,119 16,100 173 798 24~

682,442 343,921 19~0 11,903 16~1 120 610 21/91 6~62 250,888 34,170 Accounts receivable Materials and supplies Costs recoverable from future billings to participants..................

Unrealized loss on investments in funds available for sale Prepaid construction costs Prepaid cxpcnses................

Unamortized debt expenses, less accumulated amortization of$132,265 and $127,197 in1996and1995 218 611 558 718 21 750 23 980 ~69 1

260108 41 783 1 '194 366 1 219470 738 9,240 2,687 19

'1,750 4,741 (6,402) 945 4,478 S,272 3569 12,809 13,297 204,945 203,787 7~

Ir394 4+83 31,780 453,827 411,031 3

9 28 4

3,365 2+35 5~

26 66 92 3090 413348 ~429 08 201 693 164 247 ~37 9 888 28 225 S 1,011,713

$ 1,431,741 S

32.617 89,59S 276,669 S

253,706 239,972

$ 3,366,013

$ 3,400,732 Long-tenn debt LIABILITIES 981,155

$ 1,034,757 S

30,981 S

86,417 268,05 S

242,786 222,444 S 2,866~5

$ 2,894,471 Subordinate Refunding Crossover Series Arbitmgc rebate payable Defcrrcd aedits Current liabilities:

Long-tenn debt due withinone year..

Acaucd interest Accounts payable and accrued expenses Total cunent liabilities Commitments and contingencies.....

347/88 347,782 77 2,664 1,141 25,690 10,845 1,085 6,035 43,655 38,790 24~

38,436 489

~

7,884 8,256 S,994 88,182 95,288 10 333 315 62 S90 780 5499 17579 73185

~60 8 ~49 96 1636 3178 8664 8256 ~17 28 149416 157261

$ 1,041,713

$ 1,431,741 32,617 89595 276,669 253,706 239,972

$ 3,366,013

$ 3,400,732 7he turornpanying notes an an integ7u! Part ofthesefinaneiat statrrnenh.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY COMBINED STATEMENT OF OPERATIONS (in thousands)

Southe7n T)nrn7nission Hoootr Sltste7n trprating p7ofeet profert Year Pe7ded j(ale SO, 1996 San 7172r Bukd juan june 30, ptojeet 7t)tat 199S Operating revenues:

Sales ofelectric enetm7 Sales of transmission services

$ 135,464 3+49 50,117

$ 188,930

$ 183,603 85 297 226 172 85 695 91,250 Total operating revenues 155 464 85 297

~39 226 172 50'117 274 625 274.853 Opera tmg expenses:

Amortization of nudear fuel Other operations..

Maintenance Depreciation Decommissioning 7,949 25,815 6,317 18,425 12,497 10,192 5,236 20329 213 13 342 145 27 1.132 314 35,760 9,095 3 113 7,949 38,879 47@53 49/23 15 610 8,150 39,873 50,834 47,975

~16 13 Total operating expenses 7I 024 35 757 568

~101 48,282 159114

~163 5

Operating income (loss) 64,461 49+40 1,149 (342)

(1,132) 1,835 115+11 111~

Investment income

'10 886 28 993 874 410 2174

~062

~44 99 23 884 Income before debt expense 42 3,897 159,910 Debt expense

~8777 99 166

~262 1 462 4,425

~1614 2D2 706 174 140 Costs recoverable from future billings to participants

($

7.43D)

(8 20.633)

($

239)

(5

)S94)

(554083)

($

8.71)l (8

42.796)

($

38.748) 7he~ng notes are an integral part ofthese finantia stalnntnts.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY COMBINED STATEMENT OF CASH FLOWS

(/n tticnnands) year Ended June 3tt, 1996 itib 1hmsmission Hoover Mead-

/44/ead-Ma/tip/e San Verde System Upn ting Pttoenir Adetanto Pnojnt Juan hoject hoject hiojcct hojoct hijiect Fimd hofect Jime 30, 1995 7bta/

7tita!

Cash flows from operating activities:

Costs recoverable from future billings to participants Adjustments to amve at net cash provided by (used for) operating activities-Depredation Decommissioning Amortization of nuclear fuel Amortization ofdebt costs Write-offofconstruction work in progress costs ~.........

~

Changes in assets and liabilities:

Decommissioning fund...........

Interest receivable Accounts reccivablc Materials and supplies Other assets Accrued interest Accounts payable and accrued expenses Net cash provided by operating activities.....

Cash flows from investing activities:

Interest received on investments Arbitragepayment...............

Payments for construction offacilities......

Purchases ofinvestments............

~ from sale/maturity ofinvestments...

Advances for capacity and energy, net Reimbursement from WAPA Net cash provided by (used for) investing activities Cash flows from capital and related financing activities:

Payments ofinterest on long-term debt....

Proceeds from sale of bonds Payment for defeasance of revenue bonds...

Repayment ofprincipal on long-term debt Payment for bond issue costs.........

Nct cash used forcapital and related financing activities Nct increase (decrease) in cash and cash equivalents Cash and cash equivalents at beginning ofyear..

Cash and cash equivalents at cnd ofyear.....

Supplemental disclosure ofcash flowinformation:

Cash paid during the year forinterest (net of amount capitalized)..........

($

7,430)

($ 20,633)

($

239)

(S 1494)

($ 4~)

($

8,717)

(S 42,796)

($

38,748) 18,425 12,497 7,949 24,428 20,329 11,739 294 1+13 342 1,132 167 482 9,095 3,113 626 49,323 15,610 7,949 37,736 1+13 47,975 16+13 8,150 29,050 (8,971)

(289) 174 378 55 (6,150)

~643 34,629 (362)

(218)

(943)

~1943

~9282 20 (19) 405 213 1,977 691 (72) 3,467 (I) 745

~061 2

946 110 56

~1482

~6713 (8,971) 467 1,024 488 5,555 (7,105)

~604

~989 (1,297) 437 1,402 2069 117 10,036 3090 78 794 (10,892)

(154,685)

( 154,904) 18~

195+93 (22,665) 20,705 1,784 (13,208)

(3,264) 14,474 (15,652)

(9,184) 23,000

$ 18@80 (1,868)

(1,938)

(14+70) 8,867 18380 (41,690)

(360,940) 444,948 1,784 34,037 (3,757)

(104,088)

(230,693) 299,265 1,415 111 16 732 40.689

~17

~2998

~1,836

~16 12

~441 62,482 3 710 229,483 (233,632)

(23,855)

~4832 (14+25)

(610)

(16+12)

(16412) 229,483 (233,632)

(38,790)

~4,832 (37,092)

(5,798)

(36,900)

~40

~3836

~14325 610 16 12 18/25

~49 4

$ 67,879 35,646 54,678 S 90324 (748)

~745 1,997

~1280 1&8 4,279 4304 (728)

~8274

$ 7&6 53,188

~120 610

$173,798 (4,746) 56

$ 120.610 S 64.499

$ 88370 S

1,978 S

$ 16512 S 11,988

$183,347

$ 188,700 The accointicuping notes are an intern! part ofttiese financial statements.

SOUTHERN CALIFORNIAPUSLIC POWER AUTHORITY NOTES TO FINANCIALSTATEMENTS Note I Ot1fanlzatfon and

Purpose:

Southern California Public Power Authority (Authority), a public entity organized under the laws of the State of California, was formed by a Joint Powers Agreement dated as ofNovember 1, 1980 pursuant to the Joint Exercise of Powers Act of the State of California. The Authority's participant membership consists of ten Southern California cities and one public district of the State of California. The Authoritywas formed for the purpose of planning, financing, developing, acquiring, constructing, operating and maintaining projects for the generation and transmission of elec-tric energy for sale to its participants. The Joint Powers Agreement has a term of fiftyyears.

The members have the following participation percentages in the Authority's interest in the projects at June 30, 1996 and 1995:

I Participants Southern Palo Tranunisslon Hocwer Plead-Mead.

San Verde S

em U

ting Phoenhc Adetauto Juan Gty ofLos Ansclcs Gty ofAnaheim Gtyof Riverside Imperial Iimsation District Gty of Vernon

, GtyofAzusa Gty ofBannins Gty ofColton Gty ofBurbank GtyofGlendale Gtyof Pasadena 67.0%

595 o%

17.6 5.4 10.2 24.8%

42.6%

24.2 31.9 4.0 65 4.9 1.0 4.2 1.0 1.0 2.1 1.0 1.0 3.2 1.0 4.4 45 16.0 15.4 4.4 23 14.8 4A 5.9 13.8 35.7%

135 135 51.0%

2.2 14.7 13 98 2.6 14.7 115 11.1 9.8 8.6 100.0%

100.0%

100.0%

100.0%

100.0%

100.0%

'lhe mernhcrs do nct cunently pantdpate in the Multipleproject BmL Mead phocntc partidpattonrcQccts thee ownership cocnponcnts (sce below).

Soffthern TJIIJJsnnssioJJ Systnn Project The Authority, pursuant to an agreement dated as of May 1, 1983 with the Intermountain Power Agency (IPA), has made payments-in-aid ofconstruction to IPA to defray all the costs of acquisition and construction of the Southern Transmission System Project (STS), which provides for the transmission of energy from the Intermountain Generating Palo Verde Project The Authority, pursuant to an assignment agreement dated as ofAugust 14, 1981 with the Salt River Project (Salt River), purchased a 5.91'/o interest in the MoVerde Nuclear Generating Station (PVNGS), a 3,810 megawatt nuclear-fueled generating station near Phoenix, Arizona, and a 6.55'/o share of the right to use certain portions of the Arizona Nuclear Power Project ValleyTransmission System (collectively, the Palo Verde Project).

As ofJuly1, 1981, ten participants had entered into power sales contracts with the Authority to purchase the Authority's share of PVNGS capacity and energy. Units 1, 2 and 3 of the Palo Verde Project began commercial operations in January 1986, Septembei 1986, and Januaty 1988, respectively.

Station in Utah to Southern California. The Authority entered into an agreement also dated as of May 1, 1983 with six of its participants pursuant to which each member assigned its entitle-ment to capacity of FIS to the Authority in return for the Authority's agreement to make payments-in-aid ofconstruction to IPA. STS commenced commercial operations in July 1986. The Department of Water and Power of the City of Los Angeles (LADWP), a member of the Authority, serves as project manager and operating agent of the Intermountain Power Project (IPP).

Hoover Uprating Project The Authority and six participants entered into an agreement dated as of March 1, 1986, pursuant to which each participant assigned its entitlement to capacity and associated firmenergy to the Authorityin return for the Authority's agreement to make advance payments to the United States Bureau of Reclamation (USBR) on behalf of such participants. The USBR has declared that the Project was substantially complete as of September 30, 1995 with minor work scheduled to be completed in the spring of 1997. The Authorityhas an 18.68/o interest in the contingent capacity of the Hoover Uprating Project (HU). All seventeen"uprated" generators of the HU have commenced com-mercial operations.

Mead-Phoenix Project The Authority entered into an agreement dated as of December 17, 1991 to acquire an interest in the Mead-Phoenix Project (MP), a transmission line extending between, the Westwing substation in Arizona and the Marketplace substation in Nevada. The agreement provides the Authority with an 18.31'/o interest in the Westwing-Mead project component, a

17.76'/o interest in the Mead Substation project component and a 22.41'/o interest in the Mead-Marketplace project component. The Authority has entered into transmission service contracts for the entire capability of its interest with nine members of the Authority on a "take or pay" basis. In addition, the Authority has admini-strative responsibility for accounting for the separate ownership interest in the project by Western Area Power Administration (WAPA), who is providing separate funding ($72,874,000 and

$58,676,000 at June 30, 1996 and 1995, respectively) for its interest.

Commercial operations ofMP commenced inApril1996. Funding was provided by a transfer offunds from the MultipleProject Fund (Note 4).

Mead-Adelanto Project -The Authority entered into an agteement dated as of December 17, 1991 to acquire a 67.92/o interest in the Mead-Adelanto Project (MA), a transmission line extending between the Adelanto substation in Southern California and the Marketplace substation in Nevada. The Authorityhas entered into transmission service contracts for the entire capability of its inter-est with nine members ofthe Authorityon a"take or pay" basis. In addition, the Authority has administrative responsibility for

accounting for the sepamte ownership interest in the project by WAPA, who is providing sepamte funding ($17,088,000 and

$16,282,000 at June 30, 1996 and 1995, respectively) for its interest.

Funding was provided by a transfer of funds from the Multiple Project Fund (Note 4). Commercial operations commenced in April 1996. LADWP serves as both construction manager and operations manager.

MultipieProject Fund During fiscal year 1990, the Authorityissued Multiple Project Revenue Bonds for net proceeds of approxi-mately $600 millionto provide funds to finance costs of construc-tion and acquisition ofownership interests or capacity rights in one or more then unspecified projects for the generation or trans-mission ofelectric energy.

In August 1992, the Authority's Board of Directors approved a resolution authorizing the use of certain proceeds of Multiple Project Revenue Bonds to finance the Authority's ownership inter-ests in the Mead-Phoenix and Mead-Adelanto projects. Tmnsfers made from the Multiple Project Fund are sufficient to provide for the Authority's share of the estimated costs of acquisition and construction of these two projects, including reimbursement of planning, development and other related costs.

San Juan Project Effective July 1, 1993, the Authority purchased a 41.80/o interest in Unit 3, a 488 megawatt unit and related common facilities, ofthe San Juan Generating Station (SJGS) from Century Power Corpomtion. Unit 3 is one unit of a four-unit coal-fired power genemting station in New Mexico.The Authority allocated the $193 million purchase price to the estimated fair value of the utility plant ($190 million) and to materials and supplies ($3 million).The purchase has been financed through the issuance of approximately $237 million (par value) of San Juan Project Revenue Bonds. The Authorityhas entered into power sales contracts for the entire capability of its interest with five members of the Authorityon a"take or pay" basis.

Nota 2 Summary of Significant Accounting Pollclcs:

The financial statements of the Authorityare presented in confor-mity with generally accepted accounting principles, and substan-tiaHy in conformity with accounting principles prescribed by the Federal Energy Regulatory Commission and the California Public Utilities Commission. The Authorityis not subject to regulation by either of these regulatory bodies.

The financial statements represent the Authority's share in each jointly-owned project. The Authority's share of direct expenses of jointly-owned projects are included in the corresponding operat-ing expense of the statement of opemtions. Each owner of the jointly-owned projects is required to provide their own financing.

UtilityPlant -The Authority's share of aH expenditures, including geneml administmtive and other overhead expenses, payments-in-aid of construction, interest net of related investment income, deferred cost amortization and the fair value of test power gener-ated and delivered to the participants are capitalized as utility plant construction work in progress until a facility commences commercial operation.

The Authority's share of construction and betterment costs associated with PVNGS is included as utilityplant. Depreciation expense is computed using the straight-line method based on the estimated service life of thirty-fiveyears. Nuclear fuel is amortized and charged to expense on the basis ofactual thermal energy pro-duced relative to total thermal energy expected to be produced over the lifeofthe fuel. Under the provisions of the Nuclear Waste Policy Act of 1982, the Authority is charged one millper kilowatt-hour, by the federal governmen, on its share of electricity pro-duced by PVNGS, and such funds willeventually be utilized by the fedeml government to provide for PVNGS'nuclear waste disposal.

The Authorityrecords this charge as a current year expense.

The Authority's share of construction and betterment costs associated with STS, MP, MA and SJGS are included as utility plant. Depreciation expense is computed using the stmight-line method based on the estimated service lives, principally thirty-five years for STS, MAand MP and twenty-one years for SJGS.

Interest costs incurred by the MP and MAprojects through the date commercial operations commenced (April1996) are capital-ized in utilityplant. Total interest costs capitalized were $11,827,000 and $15,769,000 in fiscal 1996 and 1995, respectively, for the MA project and $3,881,000 and $5,175,000 in fiscal 1996 and 1995, respectively, for the MP project.

ArlvnncesforCapacity and Enegp -Advance payments to USBR for the upmting of the 17 genemtors at the Hoover Power Plant are included in advances for capacity and energy. These advances are being reduced by credits on billings to participants for energy and capacity.

Nuclear Decommissioning Decommissioning of PVNGS is projected to commence subsequent to the year 2022. Based upon an updated study performed by an independent engineering firm, the Authority's share of the estimated decommissioning costs is

$85.5 millionin 1995 dollars ($390 miHion in 2022 dollars assum-ing a 6'/0 estimated annual inflation mte). The Authorityis provid-ing for its share of the estimated future decommissioning costs over the remaining lifeof the nuclear power plant (25 to 27 years) through annual charges to expense which amounted to $12.5 mil-lion and

$13.4 million in fiscal 1996 and

1995, respectively.

The decommissioning liabilityis included as a component of accu-mulated depreciation and was $88.1 million and $75.6 million at June 30, 1996 and 1995, respectively.

A Decommissioning Fund has been established and partiaHy funded at $33.9 million at June 30, 1996. The Decommissioning Fund earned interest income of $700,000 during fiscal 1996.

Dnnvlifionnnd Site Reclamation Demolition and site reclamation of SJGS, which involves restoring the site to a "green" condition which existed prior to SJGS construction, is projected to commence subsequent to the year 2014. Based upon a study performed by an independent engineering firm, the Authority's share of the esti-mated demolition and site reclamation costs is $18.7 million in

1992 dollars ($65.3 million in 2014 dollars using a 6% estimated annual inflation rate). The Authority is providing for its share of the estimated future demolition costs over the remaining life of the power plant (18 years) through annual charges to expense of

$3.1 million.lIiedemolition liabilityis included as a component of accumulated depreciation and was $9.3 millionand $6.2 millionat June 30, 1996 and 1995, respectively.

As ofJune 30, 1996, the Authorityhas not billed participants for the cost ofdemolition nor has it established a demolition fund.

Unamortized Debt Expenses Unamortized debt issue

costs, including the loss on refundings, are being amortized over the terms of the respective issues and are reported net ofaccumulated amortization. Total deferred loss on refundings, net ofaccumulated amortization, was $378,070,000 and $393,440,000 at June 30, 1996 and 1995, respectively.

ing and each consecutive five years thereafter. The Authoritymade its first rebate payment of $3.8 millionduring fiscal year 1995. The next rebate payment to the IRS is due in fiscal year 2000.

ReclassrJicafious Certain reclassifications have been made in the fiscal year 1995 financial statements to conform to the fiscal year 1996 presentation.

Use ofEstimntes The preparation of financial statements in con-formity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure ofcontin-gent assets and liabilitiesat the date ofthe financial statements and the reported amounts ofrevenues and expenses during the report-ing period. Actual results could differfrom those estimates.

Inveshunlts Investments include United States Government and governmental agency securities and repurchase agreements which are collateralized by such securities.

Additionally, the Mead-Phoenix Project, the Mead-Adelanto Project and the Multiple Project Fund's investments are comprised of an investment agree-ment with a financial institution earning a guaranteed rate of return. The Southern Transmission System Project has debt service reserve funds associated with the 1991 and 1992 Subordinate Refunding Series Bonds invested with a financial institution under a specific investment agreement allowed under the Bond Indenture earning a guaranteed rate of return.

Investments available for sale are carried at aggregate fair value and changes in unrealized net gains or losses are recorded sepa-rately. Investments are reduced to estimated net realizable value when necessary for declines in value considered to be other than

'emporary. Gains and losses realized on the sale ofinvestments are generally determined using the specific identification method.

As discussed in Note 3, all of the investments are restricted as to their use.

Cash ruid Cash Equivalents Cash and cash equivalents include cash and all investments with original maturities less than 90 days.

Revenues-Revenues consist ofbillings to participants for the sales of electric energy and of transmission service in accordance with the participation agreements.

Generally, revenues are fixed at a level to recover all operating and debt service costs over the commercial lifeof the property (see Note 6).

Debt Experrse Debt expense includes interest on debt and the amortization ofbond discounts, debt issuance expense and loss on refunding costs.

Arbitrage Rebate-Arebate payable to the Internal Revenue Service (IRS) results from the investment ofthe proceeds from the Multiple Project Revenue Bond offering in a taxable financial instrument that yields a higher rate of interest income than the cost of the associated funds. The excess of interest income over costs is payable to the IRS within five years of the date of the bond offer-Fund Construction Debt Service Rcvcnuc Reset,u and Contingency Geneml Rcservc Pu

'Ib disburse funds for the acquisition and mnstruction of the Project.

To pay interest and pdncipal related to the Revenue Bonds.

To initMlyreceive all revenues and disburse them to other funds.

To pay operating expenses Ib pay capital Improlvments and make up defidcndcs in other funds.

To make up any defidencies in other funds.

Advance Ibymcnts lb disburse funds forthc mst ofacquisition ofcapadty.

Proceeds Acmunt To initiallyreceive the proceeds ofthe sale ofthe hiultiple Project Revenue Bonds.

Earnings Account Tb reccivc immtment earnings on the MultiplePrelect Revenue Bonds.

Revolving Fund To pay the Authority's operating expenses.

Decommissioning Fund To accumulate funds rcLued to the future decommissioning of PVNGS, Issue Fund Escrow account-Subordinate Refunding~ Series

'Ib initiallyreceive pledged revenues associated with the applicable subordinated refunding series'Indenture ofThrst and pay the related interest and principaL To initiallyrecrive pledged revenues assodated with Component 3 ofthe 1993 Subordinate Refunding Cross'eries'Indenture ofTrust and pay the rektted interest and principal.

Acquisition Acmunt To disburse funds for the acquisition and constmction of the Mead-Phoenix, Mead-Adeianto and San juan pmjects.

Allofthe funds listed above, except for the Revolving Fund, are held by the respective trustees.

Note 3 Special Funds:

The Bond Indentures for the six projects and the Multiple Project Fund require the following special funds to be established to account for the Authority's receipts and disbursements.

The moneys and investments held in these funds are restricted in use to the purposes stipulated in the Bond Indentures. A summary of these funds follows:

Palo Verde Project-The balances ofthe funds required by the Bond Indenture are as follows, in thousands:

Hoover UprrftingProject-The balances in the special funds required by the Bond Indenture are as follows, in thousands:

1995 1995 Debt Service Fund-Dcbt Senrice Acmunt Debt Senrice Reserve Account Revenue Fund Operating Fund Reserve and Contingency Fund Demnunissioning Trust Fund Issue Fund Revolving Fund Contractual maturities:

Withinone >sea After one year through 6ve )'eas After 6ve >eas thmugh ten yeas Aftertcn yeas

$ 51~

74,420 5

20,130 25,924 34,131 13,026 45

$ 219,067 51394 74,160 5

20.134 26,107 33,740 13,026 45

$ 218,611 69,781 69+91 136,279 136,148 3,187 3,252 9,820 9~

$ 219,067

$ 218,611 57 457 81,497 1

31,141 16,776 24503 12,486 45

$ 218,906 52,467 81,077 1

31,026 17,075 2~

14486 45

$ 218,680 Advance payments Fund Operating-irking Capital Fund Debt Scnrice Fund-Debt Service Account Debt Service Reserve Account General Reserve Fund Revolving Fund Contractual maturitics:

Withinone year Afterone >ear through 6ve >eas W90 3,122 5+18 11,634 9,631 11,634 2390 3,121 5316 11,631 9 628 11,631 2,437 563 1,440 3,078 2,911 13 10,442 2,437 563 1,429 3,068 2,914 13 10,424 In addition, at June 30, 1996 and 1995, the Authority had advances to USBR of $10,119,000 and $11,903,000, respectively.

Soufheni Transmission Sysfern Project The balances in the special funds required by the Bond Indenture are as follows, in thousands:

Mead-Phoenix Project The balances in the special funds required by the Bond Indenture are as foHows, in thousands:

Construction fund-InitialFacilities Amount Debt Service Fund-Debt Service Account Debt Service Reserve Account Operating Fund General Reserve Fund Issue Fund Escmsv Account-Subordinatc Refunding

~ Series Revolving Fund Contractual maturities:

Withinone >ear Afterone year thmugtt 6ve )'Mls After fiveyeas through ten )'eas Afterten )seas 21,921 86,220 6,015 4,194 77,024 21,896 86,189 6,007 4,194 76,794 31,480 66,672 5,987 9~

77,768 31/91 66,857 5,987 9~2 77P79 346,474 15

$ 542,098 343,903 15

$ 539,233 355,101 15

$ 546,779 353,188 15

$ 544,882

$ 102,008

$ 101,975 80,852 80g03 36,972 34,189 322,266 322,266

$ 542.098

$ 539,233 235 235 223 223 Acquisition Acmunt Debt Service Fund-Debt Savice Account Debt Service Reserve Account Issue Fund Revenue Fund Operating Fund Revolving Fund Contractual maturities:

Within one )ea Afterone >sea through 6ve >seas After ten years Fair Amati'ail Value Cost Value 12571

$ 1%71 19,830 19,830 4,976 6,133 64 239 6

23,989 4,967 6,133 64 239 6

23,980 4,444 6,132 4,924 6

$ 35~

4444 6,132 M73 6

35,285

$ ~9 2+89 1,242 1,233 20,358 20&8 23,989 23,980 Fair moonized Fair Value Cost Value Mead-Arlelnnfo Project -The balances in the special funds required by the Bond Indenture are as follows, in thousands:

In addition, at June 30, 1996 and 1995, the Authorityhad non-interest bearing advances outstanding to IPA of$19,550,000.

Acquisition Account Debt Savice Fund-Dcbt Service Account Debt Service Rcserm Acmunt Issue Fund Revenue Fund Operating Fund Revolving Fund Contractual maturities:

Withinone year Afterone year thmugh 6ve yeas Afterten >ears 15,194 16,865 71 264 6

69379 15,166 16,865 71 264 6

$ 69&1 1'4353 17,040 16/17 6

83,661 12m 17,010 16+46 6

83A90 6,794 6,789 4,161 58,424 69379 4,138 58,424 69,351 36,979 36,979 37,745 37,745

MultipleProject Fund The balances in the special funds required by the Bond Indenture are as follows, in thousands:

Proceeds Account Earnings Account Contractual maturities:

Withinone year After ten years

$ 256,830

$ 256,830

$ 256/30 3,278 3,278 1~

$ 260,108

$ 260,108

$ 258.214 9,220 9,220 250,888 250g88

$ 260,108

$ 260,10S

$ 256,830 1~

$ 258,214 San Juan Project The balances in the special funds required by the Bond Indenture are as follows, in thousands:

1995 Fair Fair Value Cost Vatue Operating Account Operating Reserve Account Acquisition Account Debt Service Fund-Dcbt Service Account Debt Service Reserve Account Rcscrve and Contingency Fund Revolving Fund 1,238 7

527 8,607 18,031 13077 41,787 1,23S 7

527 8597 18,031 13~

41,783 1,618 2

112 6,017 18,026 11,224 15 37.014 1,618 2

112 6,017 18,026 11,252 15 37,012 Contractual matunties:

Withinone year Afterone year tluough five )'eius Afterten years 7,613 7,613 16,149

~ 16,145 18,025 18,025 41,787 41,783 Project Investnfent Sales There were no proceeds from sales of investments during fiscal 1996 or 1995.

Note 4 Long-tcrnt Debt:

Reference is made below to the Combined Schedule ofLong-term Debt at June 30, 1996 fordetails related to all ofthe Authority's out-standing bonds.

Palo Verde Project -To finance the purchase and construction of the Authority's share of the Palo Verde Project, the Authority issued Power Project Revenue Bonds pursuant to the Authority's Indenture ofTrust dated as of July 1, 1981 (Senior Indenture), as amended and supplemented. The Authority also has issued and has outstanding Power Project Subordinate Refunding Series Bonds issued under an Indenture ofTrust dated as of January 1, 1993 (Subordinate Indenture). The Subordinate Refunding Bonds were issued to advance refund certain bonds previously issued under the Senior Indenture.

The bond indentures provide that the Revenue Bonds and Subordinate Refunding Bonds shall be special, limited obligations of the Authoritypayable solely from and secured solely by (1) pro-ceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to the Palo Verde Project (see Note 6) and interest on all moneys or securities (other than in the Construction Fund) held pursuant to the Bond Indenture and (3) all funds estab-lished by the Bond Indenture.

At the option of the Authority, all outstanding Power Project Revenue Bonds and Subordinate Refunding Term Bonds are subject to redemption prior to maturity, except for the 1996 Subordinate Refunding Series Awhich is not redeemable.

The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2003 (1986 Series A Bonds and 1987 Series ABonds), 2005 (1989 Series ABonds), 2010 (1993 Series A Bonds), and 2008 (1996 Subordinate Refunding Series B). Scheduled principal maturities for the Palo Verde Project during the five fiscal years followingJune 30, 1996 are $25,690,000 in 1997, $22,220,000 in 1998, $23,580,000 in 1999, $25,145,000 in 2000, and $12,860,000 in 2001. The average interest rate on out-standing debt during fiscal year 1996 and 1995 was 5.8% and 6.0%,

respectively.

Southern Transnnssion Systmn Project -To finance payments-in-aid of construction to IPA for construction of the FIS, the Authority issued Transmission Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of May 1, 1983 (Senior Indenture), as amended and supplemented. The Authorityalso has issued and has outstanding Tmnsmission Project'Revenue Bonds 1991 and 1992 Subordinate Refunding Series issued under Indentures ofTrust dated as of March 'I, 1991 and June 1, 1992, respectively. The 1991 and 1992 subordinated bonds were issued to advance refund certain bonds previously issued under the Senior Indenture.

The bond indentures provide that the Revenue Bonds and the Subordinate Refunding Series Bonds shall be special, limited oblig-ations of the Authority payable solely from and secured solely by (1) proceeds from the sale ofbonds, (2) all revenues, incomes, rents and receipts attributable to STS (see Note 6) and interest on all moneys or securities (other than in the Construction Fund) held pursuant to the Bond Indenture and (3) all funds established by the Bond Indenture.

All outstanding Tmnsmission Project Revenue and Refunding Bonds, at the option of the Authority, are subject to redemption prior to maturity.

The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2003 (for the 1986 Series A Bonds), 2002 (1986 Series B Bonds) and 2007 (1988 Series A Bonds). Scheduled principal maturities for FIS during the five fis-cal years following June 30, 1996 are

$10,845,000 in 1997,

$21,565,000 in 1998, $22,790,000 in 1999, $10,200,000 in 2000, and

$10,115,000 in 2001. The average interest mte on outstanding debt during fiscal year 1996 and 1995 was 8.3%.

Hoover Uprating Project -To finance advance payments to USBR for application to the costs of the Hoover Upmting Project, the Authorityissued Hydroelectric Power Project Revenue Bonds pur-suant to the Authority's Indenture ofTrust dated as of March 1, 1986 (Bond Indenture).

The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from and secured solely by (1) the proceeds from the sale of the bonds, (2) all revenues I'rom sales of energy to participants (see Note 6),

(3) interest or other receipts derived from any moneys or securities held pursuant to the Bond Indenture and (4) all funds established by the Bond Indenture (except for the Interim Advance Payments Account in the Advance Payments Fund).

At the option of the Authority, all outstanding Hydroelectric Power Project Revenue Bonds are subject to redemption prior to maturity.

The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2007 for the 1991 Series A Bonds maturing on October 1, 2010 and fiscal year 2011 for the 1991 Series A Bonds maturing on October 1, 2017. Scheduled principal maturities for the Hoover Upmting Project during the five fiscal years following June 30, 1996 are $1,085,000 in 1997,

$1,'130,000 in 1998, $1,230,000 in 1999, $1,285,000 in 2000, and

$1,400,000 in 2001. The avemge interest mte on outstanding debt during fiscal year 1996 and 1995 was 5.8'/0 and 6.1'/0, respectively.

During fiscal 1995, the Authorityrepurchased $340,000 of out-standing Hydroelectric Power Project Revenue Bonds with excess funds in the Advance Payments Fund.

MultipleProj ect Fund To finance costs ofconstruction and acqui-sition of ownership interests or capacity rights in one or more projects expected to be undertaken withinfiveyears after issuance, the Authority issued Multiple Project Revenue Bonds pursuant to the Authority's Indenture ofTrust dated as ofAugust 1, 1989 (Bond Indenture), as amended and supplemented.

The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) with respect to each authorized project, the revenues ofsuch authorized project, and (3) all funds established by the Bond Indenture.

In October 1992, $103,640,000 and $285,010,000 ofthe Multiple Project Revenue Bonds were transferred to the Mead-Phoenix Project and the Mead-Adelanto Project, respectively, to finance the estimated costs ofacquisition and construction of the projects.

A total of $153,500,000 of the outstanding Multiple Project Revenue Bonds are not subject to redemption prior to maturity. At the option of the Authority, the balance of the outstanding bonds are subject to redemption prior to maturity.

The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2006 for the 1989 Series Bonds. The first scheduled principal maturity for the Multiple Project Revenue Bonds is $8,645,000 in fiscal year 2000. The aver-age interest rate on outstanding debt during fiscal year 1996 and 1995 was 6.8'/0.

Mead-Phoenix Project -To finance the Authority's ownership inter-est in the estimated cost ofthe project, $103,640,000 ofthe Multiple Project Revenue Bonds were tmnsferred to the Mead-Phoenix Project in October '1992. In March 1994, the Authority issued and has outstanding $51,835,000 of Mead-Phoenix Revenue Bonds under an Indenture of Trust dated as of January

'1, 1994 (Bond Indenture). The proceeds from the Revenue Bonds, together with dmwdowns from the Debt Service Fund and Project Acquisition Fund, were used to advance refund $64,840,000 of the Multiple Project Revenue Bonds previously transferred to the Mead-Phoenix Project.

The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) all

revenues, incomes, rents and receipts attributable to Mead-Phoenix (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.

At the option of the Authority, all outstanding Mead-Phoenix Revenue Bonds are subject to redemption prior to maturity.

The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2018 for the 1994 Series Bonds. The first scheduled principal maturity for the Mead-Phoenix Revenue Bonds is $1,295,000 in fiscal year 2000. The aver-age interest rate on outstanding debt during fiscal year 1996 and 1995 was 6.00/.

Mead-Adelanto Proj ect-To finance the Authority's ownership inter-est in the estimated cost ofthe project, $285,010,000 ofthe Multiple Project Revenue Bonds were tmnsferred to the Mead-Adelanto Project in October 1992. In March 1994, the Authority issued and has outstanding $173,955,000 of Mead-Adelanto Revenue Bonds under an Indenture of Trust dated as of January 1, 1994 (Bond Indenture). The proceeds of the Revenue Bonds, together with dmwdowns from the Debt Service Fund and Project Acquisition Fund, were used to advance refund $178,310,000 of the Multiple Project Revenue Bonds previously transferred to the Mead-Adelanto Project.

The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, 1) proceeds from the sale of bonds, (2) all

revenues, incomes, rents and receipts attributable to Mead-Adelanto (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.

At the option of the Authority, all outstanding Mead-Adelanto Revenue Bonds are subject to redemption prior to maturity.

The Bond Indenture requires mandatory sinking fund install-ments to be made beginning in fiscal year 2018 for the 1995 Series Bonds. The first scheduled principal maturity for the Mead-Adelanto Revenue Bonds is $3,560,000 in fiscal year 2000. The avemge interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.9'/0 and 6.0'/0, respectively.

San juan Project To finance the costs of acquisition of an owner-ship interest in Unit 3 of the SJGS, the Authority issued San Juan Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as ofJanuary 1, 1993 (Bond Indenture).

The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to San Juan (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.

At the option of the Authority, all outstanding San Juan Project Revenue Bonds are subject to redemption prior to maturity.

'Ihe Bond Indenture requires mandatory sinking Eund install-ments to be made beginning in fiscal year 2012 for the 1993 Series A Bonds. The scheduled principal maturities for the San Juan Project Revenue Bonds during the five fiscal years followingJune 30, 1996 are $6,035,000 in 1998, $6,275,000 in 1999, $6,540,000 in 2000 and $6,825,000 in 2001. The average interest rate on out-standing debt during fiscal year 1996 and 1995 was 5.3'lo.

ReJiaiding Bonds InApril1996, the Authorityissued $152,905,000 of Palo Verde 1996 Subordinate Refunding Series A Bonds to refund

$163,355,000 of previously issued Palo Verde 1987 Refunding Series A Bonds and issued $58,870,000 of Palo Verde 1996 Subordinate Refunding Series B Bonds to refund $18,555,000 and $40,315,000 of previously issued IbloVerde 1986 Refunding Series B and 1987 Refunding Series A Bonds, respectively. The refunding is expected to reduce total debt service payments over the next 13 years by approximately $50,967,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings of approxi-mately $29,537,000.

In March 1994, the Authority issued

$51,835,000 of Mead-Phoenix Project Revenue Bonds and

$173,955,000 of Mead-Adelanto Project Revenue Bonds to refund $243,150,000 of previously issued Multiple Project Revenue Bonds which were transferred to the Mead-Phoenix and Mead-Adelanto projects during fiscal year 1993. The partial refunding of the original issue withinfiveyears ofits issuance triggered a recalculation ofthe arbi-trage yield. The recalculation resulted in a higher arbitrage yield which reduced the rebate liability of the Authority. At June 30, 1996, cumulative savings due to the rebate calculation amounted to

$6,401,924. This amount was allocated $1,707,180 and $4,694,744 to the Mead-Phoenix and Mead-Adelanto Projects, respectively.

In July 1992, the Authority issued $475,000,000 of Southern Tmnsmission Project Revenue Bonds to refund $385,385,000 of previously issued bonds. Principal and interest with respect to the 1992 bonds are allocated into four separate components. Each of components 1, 2 and 3 is secured by, and payable from, invest-ments in its escrow fund until scheduled crossover dates.

Component 4 proceeds of $14,100,000 were used to advance retund approximately $9,000,000 of bonds in fiscal year 1993. On the Component 1 Crossover date (January 1, 1994), Component 1 proceeds of$13,959,000 were used in fiscal 1994 to advance reEund

$13,455,000 of previously issued bonds. On the Component 2

Crossover date (January 1, 1995), Component 2 proceeds of

$5,519,000 were used in fiscal 1995 to advance refund $5,335,000 of previously issued bonds.

Proceeds from Component 3 of

$343,921,000 were placed in an irrevocable trust and willbe used to redeem $313,050,000 of bonds currently included within long-term debt at scheduled call dates. The combined refunding is expected to reduce total debt service payments over the next 25 years by approximately $52,585,000 and is expected to result in an ovemll net present value savings of approximately $25,060,000.

Until the bonds to be refunded by Component 3 are called, interest on the bonds is payable from interest earned on invest-ments with a financial institution under a specific investment agreement purchased out of the proceeds of the sales and held in bank escrow accounts. Afterthe monies in the escrow accounts are applied to redeem the bonds to be called, primarily through fiscal 1997, interest on the bonds willbe payable from revenues. The trust account assets ($343,898,000 in escrow accounts and $2,410,000 in unamortized debt expense at June 30, 1996) and liabilities

($347,388,000, net of bond discounts, at June 30, 1996) for Component 3 are included in the Authority's financial statement.

The revenue bonds to be refunded are also included in the finan-cial statements until the scheduled call date, at which time the refunded bonds and related trust account assets willbe removed from the balance sheet and the cost of refunding the debt willbe included in unamortized debt expenses.

In January 1992, $70,680,000 of MoVerde Special Obligation Crossover Series Bonds were issued, the proceeds of which were placed in an irrevocable trust and will be used to redeem

$69,125,000 of bonds currently included within long term debt at scheduled call dates.

Until the bonds to be reEunded by the Mo Verde Special Obligation Crossover Series Bonds are called, interest on the Mo Verde Special Obligation Crossover Series Bonds is payable f'rom interest earned on securities ofthe United States Government pur-chased out of the proceeds of the sales and held in bank escrow accounts. After the monies in the escrow accounts are applied to redeem the bonds to be called, primarilythrough 1996, interest on the IbloVerde Special Obligation Crossover Series Bonds willbe payable from revenues. The trust account assets and the liabilityfor the Palo Verde Special Obligation Crossover Series Bonds are not included in the Authority's financial statements. At June 30, 1996 and 1995, $63,849,000 and $70,959,000, respectively, of these trust assets have been offset against the Palo Verde Special Obligation Crossover Series Bonds.

On July 1, 1995, the crossover date for the MoVerde Special Obligation Bonds Series A, trust assets in escrow of $7,131,000 were used to advance reEund $7,125,000 of previously issued bonds.

AtJune 30, 1996 and 1995, the aggregate amount of debt in all projects considered to be defeased was $3,535,075,000 and

$3,305,725,000, respectively.

Iuterest Rate Swap In fiscal year 1991, the Authority entered into an Interest Rate Swap agreement witha third party forthe purpose of hedging against interest mte fluctuations arising from the issuance of the Transmission Project Revenue

Bonds, 1991 Subordinate Refunding Series as variable mte obligations. The notional amount of the Swap Agreement is equal to the par value of the bond ($291,700,000 and $292,000,000 at June 30, 1996 and
1995, respectively). The Swap Agreement provides for the Authorityto make payments to the third party on a fixed mte basis at 6.38'lo, and for the third party to make reciprocal payments based on a variable rate basis (3.1'/o and 3.9'lo at June 30, 1996 and 1995, respectively). The bonds mature in 2019.

COMBINED SCHEDULE OF LONG-TERM DEBT AT JUNE 303 1996 fin th7outanA)

Principal:

Palo Verde Project Revenue and Refunding Bonds Southern I?ansmission System Project Revenue and Refunding Bonds 1985A 1985B 1986A 1986B 1987A 1989A 1992A 1992C 1993Sub 1993A 1996A 1996B 1986A 1986B 1988A 1991A 1992 Comp 1,2,4 1992 Comp 3 1993A I/ate oJ Sate 05/22/85 07/02/85 03/13/86 12/16/86 02/11/87 02/1S/89 01/01/92 01/01/92 03/01/93 03/01/93 02/13/96 02/29/96 03/18/86 04/29/86 11/22/88 IN/17/91 07/20/92 07/20/92 07/01/93 Effntloe Interest Rate 9.7%

9.1%

8.2%

7.2%

6.9%

7.2%

6.0%

6.0%

55%

55%

4.4%

44%

8.0%

75%

7.2%

6.4%

6.1%

6.1%

S.4%

Maturityon July I 1996 to 1999 1996 to 2000 1996 to 2006 1996 to 2017 1996 to 2017 1996 to 2015 1996 to 2010

'1996 to 2010 1996 to 2017 1996 to 2017 1996 to 2017 1996 to 2017 1996 to 2021 1996 to 2023 1996 to 2015 2019 1996 to 2021 1996 to 2021 1996 to 2023 Total 1,070 5,610 71,220 96,450 43,720 287,705 7,265 15,620 98,200 270,035 152,905 58 870 1,108,670 107@00 401570 154,085 291,700 40,639 431,766 125 865 Hoover Uprating Project Revenue and Refunding Bonds 1986A 1991

'8/13/86 8.1%

08/01/91 6.2%

1996 to 2017 1996 to 2017 4,160 31695

'ultiple Project Revenue Bonds Mead-Phoenix Project Mead-Adeianto Project MultipleProject 1989 1989 1989 01/01/90 7.1%

01/IN/90 7.1%

01/04/90 7.1%

1999 to 2020 1999 to 2020 1999 to 2020 38,800 106,700 259 100 Mead-Phoenix Project Revenue Bonds Mead-Adelanto Projed Revenue Bonds San Juan Project Revenue Bonds Total principal amount Unamortized bond discount:

MoVerde Project Southcmltansmission System Project Hoover Uprating Project Mead-Phoenix Project Mead-Adelanto Project........

MultipleProjed Fund San Juan Project Total unamortized bond discount Long-tenn debt due within one year

'lbtal long-term debt, net (including Subordinate Refunding Crom'eries) 1993 03/01/94 53%

03/01/94 53%

06/01/93 5.6%

2006 to 2015 2006 to 2015 1997 to 2020 51 835 173 955

~257 75

~365 015 (101,823)

(1S9,935)

(3~9)

(4,218)

(12,650)

(16313)

~8899 30742 43 655

$ 3.213.933

Note S Disclosures about Fair Value of Financial Instrumcntsr The followingmethods and assumptions were used to estimate the fair value of each class offinancial instruments for which it is pmc-ticable to estimate that value:

Long-tenn debt/Special Obligation Crossover Series Bonds/Subordinate Refiutding Crossover Series-The fairvalue ofthe Authority's debt is estimated based on the quoted market prices for the same or sim-ilar issues or on the current avemge rates offered to the Authority fordebt ofapproximately the same remaining maturities, net'of the effect ofa related interest rate swap agreement.

The fair values of the Authority's financial instruments are as follows (in thousands):

Abets:

Cash and cash equivalents Escrow account Subordinate Refunding Crom'eries Decommissioning fund Investments Liabilities:

Debt Suboniinate Refunding

~ Series Fait Fatr Vitue Cost Wue

$ 173,798

$ 173,798

$ 120,610

$ '120,610 346,468 33,865 597,831 343,898 33,474 597,427 345,782 343,921 24503 24~

682,916 682,442 2,910,200 3,210,790 2,933,261 3,198~

347@88 385,516 347,782 377,700 OJIBalarree Shert Ffrtanrfal Iastrurrrents:

Spedal Obligation Crammer Series Bonds

~ escrow accounts 63,415 63,849 67,739 63,849 70,680 75+00 70,959 70,959 Noto 5Power Sales and Transmission Scrvlco Contracts:

The Authority has power sales contmcts with ten participants of the Palo Verde Project (see Note 1). Under the terms of the con-tracts, the participants are entitled to power output from the PVNGS and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on Power Project Revenue Bonds and other debt. The contracts expire in 2030 and, as long as any Power Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which willimpair or adversely affect the rights of the bondholders.

The Authorityhas tmnsmission service contmcts withsix partic-ipants of the Southern Transmission System Project (see Note 1).

Under the terms of the contracts, the participants are entitled to tmnsmission service utilizing the Southern Tmnsmission System Project and are obligated to make payments on a"take or pay"basis Cnsh and cash equivalents -The carrying value approximates fair value because of the short maturity of those instruments.

Investnlents/Decouunissioning fiui/Escroto account Subordinate Refiutding Crossover Series/Crossover escrow accounts-The fair values ofinvestments are estimated based on quoted market prices for the same or similar investments.

for their proportionate share of operating and maintenance expenses and debt service on Tmnsmission Project Revenue Bonds and other debt. The contmcts expire in 2027 and, as long as any Transmission Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.

In March 1986, the Authorityentered into power sales contmcts with six participants of the Hoover Upmting Project (see Note 1).

Under the terms of the contmcts, the participants are entitled to capacity and associated firmenergy of the Hoover Uprating Project and are obligated to make payments on a "take or pay" basis for their proportionate share of opemting and maintenance expenses and debt service whether or not the Hoover Upmting Project or any part thereof has been completed, is operating or is operable, or its service is suspended, interfered with, reduced or curtailed or ter-minated in whole or in part. The contracts expire in 2018, and as long as any Hydroelectric Power Project Revenue Bonds are out-standing, cannot be terminated or amended in any manner which win impair or adversely affect the rights of the bondholders.

InAugust 1992, the Authorityentered into transmission service contracts with nine participants of the Mead-Phoenix Project (see Note 1). Under the terms ofthe contracts, the participants are enti-tled to transmission service utilizingthe Mead-Phoenix Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on the Multiple Project and Mead-Phoenix Revenue Bonds and other debt, whether or not the Mead-Phoenix Project or any part thereof has been completed, is operating and operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part. The contracts expire in 2030 and, as long as any Multiple Project and Mead-Phoenix Revenue Bonds are outstanding, cannot be terminated or amended in any manner which willimpair or adversely affect the rights ofthe bondholders.

InAugust 1992, the Authorityentered into transmission service contracts with nine participants of the Mead-Adelanto Project (see Note 1). Under the terms ofthe contmcts, the participants are entitled to transmission service utilizing the Mead-Adelanto Project and are obligated to make payments on a"take or pay"basis for their proportionate share of operating and maintenance expenses and debt service on the Multiple Project and Mead-Adelanto Revenue Bonds and other debt, whether or not the Mead-Adelanto Project or any part thereof has been completed, is operating and operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part. The con-tracts expire in 2030 and, as long as any Multiple Project and Mead-Adelanto Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.

In January

1993, the Authority entered into power sales contracts with five participants of Unit 3 of the San Juan Project (see Note 1). Under the terms ofthe contmcts, the participants are entitled to their proportionate share of the power output of the San Juan Project and are obligated to make payments on a"take or pay" basis for their proportionate share of operating and mainte-nance expenses and debt service on the San Juan Revenue Bonds,

whether or not Unit3 ofthe San Juan Project or any part thereof is operating or operable, or its senrice is suspended, interfered with, reduced or curtailed or terminated in whole or in part. The con-tracts expire in 2030 and, as long as any San Juan Revenue Bonds are outstanding, cannot be terminated or amended in any manner which willimpair or adversely affect the rights of the bondholders.

GAAPitems not induded in billings to partidpants:

Depreciation ofplant Amortization ofbond discount, debt issue costs, and mst of refunding Nudear fuel amortization Decommissioning expense Interest cxpcnse l4Luue Bseat Mance

tune30, 1996 tune 30, 1995 Aetnt 1996

$ 348328

$ 49323

$ 397,651 206,470 18,650 75.233 23,165 37,745 898 7,610 22,798 244,215 19W8 82,843 45,963 Bond requirements induded in billings to participants:

Operations and maintenance, net ofinvestment inmrnc Costs ofacquisition ofcapacity - SIS Reduction in debt service billings duc to transfer ofexcess funds prindpal repayments Other (67,253)

(18/50) 78,658 (222,130)

~31 740

$ 411,031 (21,062)

(11,099)

(39N9)

~3858

$ 42,796 (88315)

(18~)

67W9 (261,689)

~35598

$ 453W7 Note 7 Costs Rccoverablc from Future Billings to

Participants:

Billings to participants are designed to recover "costs" as defined by the power sales and transmission service agreements.

'Ihe billings are structured to systematically provide for debt senrice requirements, opemting funds and reserves in accordance with these agreements. Those expenses, according to generally accepted accounting principles (GAAP), which are not included as "costs" are deferred to such periods when it is intended that they be recovered through billings for the repayment of principal on related debt.

Costs recoverable from future billings to participants are comprised of the following:

system established by the legislation. The Bill also mandates the collection of a public benefit charge from all electric utility customers in the state. Although these funds (currently estimated at 2.5'/o of gross revenues) must be spent on renewable resources, conservation, research and development, or low income rate subsidies, the governing authority of each consumer-owned utility willcontrol actual expenditures.

As a participant in the PVNGS, the Authority could be subject to assessment ofretroactive insumnce premium adjustments in the event of a nuclear incident at the PVNGS or at any other licensed reactor in the United States.

The Authority is involved in various legal actions. In the opinion of management, the outcome of such litigation or claims will not have a material effect on the financial position of the Authorityor the respective separate projects.

Note 9 subsequent Events:

On July 1, 1996, the crossover date for the Palo Verde Special Obligation Bonds Series B, trust assets held in escrow of

$63,415,000 were used to advance refund $62,000,000 ofpreviously issued bonds.

In August 1996, the Authority issued $89,570,000 of MoVerde 1996 Subordinate Refunding Series C bonds to refund $95,015,000 of 1986 Refunding Series B bonds. The refunding is expected to reduce total debt service payments over the next 20 years by approximately $24,713,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings ofapproximately $16,955,000.

In September 1996, the Authority issued

$42,245,000 of Transmission Project Revenue Bonds, 1996 Subordinate Refunding Series Aand $121,065,000 ofTransmission Project Revenue Bonds, 1996 Subordinate Refunding Series B to refund $68,720,000 and

$127,100,000 of the STS 1986 Refunding Series A and B, respec-tively. The refunding is expected to reduce total debt service payments over the next 10 years by approximately $6,029,000 (the difference between the debt senrice payments on the old and new debt) and is expected to result in a net present value savings ofapproximately $3,372,000.

Note 8 Commltmcnts and Contlngenclest On August 31, 1996, the California State Legislature approved Bill AB 1890 (Bill)which provides for broad deregulation of the power generation industry in California. The Bill, which is pending approval by the Governo, requires the participation of the state' three investor-owned utilities. Consumer-owned utilities can participate on a voluntary basis but must hold public hearings as part of its decision making process. The Bill,which was supported by the Authority, authorizes the collection ofa transition charge for generation when a consumer-owned utilityopens its service area to competition and participates in the independent transmission

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SUPPLEMENTAL FINANCIALINFORMATION INDEX Palo Verde Pro ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Opemtions for the Years Ended June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Southern Transmission S

tern Project Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Opemtions for the Years Ended June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Hoover Upratlng Pro ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Opemtions for the Years Ended June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Mead. Phoenix Project Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Opemtions for the Three Months Ended June 30, 1996 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and '1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Mead-Adelanto Project Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Operations for the Three Months Ended June 30, 1996 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Multi lo Pro ect Fund Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 San Juan Project Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Operations for the Years Ended June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL BALANCESHEET fin uh7uuranh)

Utilityplant:

Production Tlallsnusslon General Less - Acaunulatal depreciation Construction work in progress Nudcar fueL at amortized cost Net utilityplant.

Special funds:

Available for sale at fair value:

Decommissioning fund lnvcstmcnts Interest receivable Cash and cash equivalents Accounts receivable Materials and supplies Costs recoverable from future billings to participants Unrealized loss on investments in funds available for sale ASSETS 613,608 14,146 4569 380@02 9~

13 223 403 030 33,474 115,746 1,512 67 879 218 611 9,240 204,945 junc 50, 1995 611,771 14,146 M74 628,491 219 881 408,610 9,683 12716 431,009 24~

143,600 1 223

~49 354 218 680 912 9,618 197/15 Unamortized debt expenses, less accumulated amortization of$65,795 and $71+25

'Ibtal assets 204,693 1,041,713 209 740

'1.067,700 Long-tenn debt Current liabilities:

Long-term debt due within one year Acaued interest Accounts payablc and acaued expenses Total aurcnt liabilities Commitments and contingencies Total liabilities LIABILITIES 981,155 25,690 24~

10~

1,041,713 23,855 30,685

'16 770 71310

$ 1.067,700

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS t176 tl74744547ndS) 1996 Y674r Enhd june 30, 1995 Operating revenue:

SaIes of electric energy Opetatmg expenses:

Nudear fuel.

Other operations Maintenance Depreciation Deconunissioning Total operating expenses Operating income Investment income Income before debt expense Debt expense Costs recoverable from future billings to participants 135464 7,949 25,815 6317 18,425

~1497 64,461 10,886

($

7,430) 5 129,180 8,150 25+07 7,825 19,145 13 401 9963 65@20 77 976 (3

176567 5te tx7tts t474i7x3Ã471 tt44tr777677ts.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS fin thttsanat&s)

Cash flows from operating activities:

Costs recoverable from future billings to partidpants Adjustments to amve at net cash provided by (used for) operating activitics-Depreciation..

Decommissioning Amortization of nudear fuel Amortization ofdebt costs Changes in assets and liabilities:

Decommissioning fund Interest receivable Accounts receivable Materials and supplies Other assets Accrued interest Accounts payable and accrued expenses..

Net cash provided by operating activities Cash flows from investing activities:

Payments for construction offaciTity Purchases ofinvestments Proceeds frotn sale/maturity of investments Nct cash provided by (used for) investing activities Cash flows from capital and related financing activities:

Payment ofpnndpal on long-term debt lbyment ofbond issue costs..

Payment for defeasance ofrcvcnue bonds Proceeds from issuance ofrefunding bonds Net cash used forcapital and related financing activities Net increase (decease) in cash and cash equivalents Cash and cash equivalents at beginning of period Cash and cash equivalents at end ofyear Supplemental disdosure ofcash flowinformation:

Cash paid during the year for interest (net ofamount capitalized) 1996

($

7rI30) 18,425 17497 7,949 24,428 (8,971)

(289) 174 378 55 (6,150)

~643 34 629 (10,892)

(154,685) 1~

16 732 (23,855)

(4,832)

(233,632) 229 483 (32,836) 18/25

~49 67,879 64,499 Year Enkd tuna 30,

($

12,656) 19,145 13,401 8,150 16,607 (1,297) 127 131 729 (2)

(719) 3 241 46 837 (9/69)

(97,108) 68,891 37 786 (22425)

(13/54)

~6708 8

49384 62.089 Se notes tofinant7a! staten3tne.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FOR THE YEAR ENDED JUNE 30$ 1996 fin hurusandsi Mance at June 30, 1995 9 22rrantis-Detrt RSserre &

surtNtg gemue Rettenue Operating Gintingeruy issue Funds Fund Fimd Fund Fund Fimd I&11 7tttal 3

137,133 5

30 948 3

16$ 74 S

12,4S2 24.490 216 627 Additions:

Investment earnings Distribution ofinvestment camings Discount on investment purchases Revenue from power sales Distribution ofrcvenucs Transfers to csaow forrefundings..

Transfer from escrow for prinopal and interest payments 4,409 (5,734) 1,971 49 81,922 (10,413) 379 634 31 8,604 3

129,180 (138,843) 78 951 834 (1,213) 513 37 39,603 (93)

~11 06 1,100 (1,000) 336 6

3,989 (2,886)

~10 81 616 (657) 41 5325 4,046 749 8,004 7,739 3,287 129,272 (9,268) 380 099 Total 451 838 4

28 614

~1126

~972 9176 S11129 Deductions:

Construction expenditures Operating cxpcnditures..

Fuel costs.....

Bond issue costs Ibyment ofprincipal Intcrcst paid Premium and interest paid on investments Payment ofprincipal and interest on esaow bonds 23,855 55,130 202 3SO 099 31,041 8,457 115 3,060 58 3.173 131 3,060 5

31,046 8,457 3.173 23,855 60,793 506 380 099 Mance at Junc 30, 1996 459 236 39 613 3118 8 836 186 510 989 124,685 4

19,949 25582 13,017 33,530 216,767 1his schedule sununarizes the rccdpts and disbursements in funds requited under thc Bond Indenture and has been prepared from the trust statements.'Ihe balances in thc funds consist ofcash and investments at original cost. These balances do not indudc aeaued interest receivable of$1,245 and $1,223 and Decommissioning Fund acaued intaest receivable of

$267 and $138 at june 30, 1996 and 1995, respectively, nor do they include total amortized net investmcnt discounts of $788 and $918 at june 30, 1996 and 1995, respectively.'Ihese balances also do not indude utuealizcd loss on investments in funds available forsale of$456 and $226 at Junc 30, 1996 and 1995,~ly.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAL BALANCESHEET f172~)

Utihtyplant:

Transnusslon General Less - Accumulated depreciation Construction work in progress Nct utiTityplant ASSETS 674,606 18 893 693,499 194 127 499 372 199S 675+01 18,893 694,194

~174 92 519,802 1 212 321034 Special funds:

Available for sale at fairvalue:

Investments Escrow account - Subordinate Refunding Crosamr Series Advance to Intennountain power Agency.

Interest receivable Cash and cash equivalents Accounts receivable Costs recoverable hum future billings to participants Unrealized loss on investments in funds available for sale Unamortized debt expenses, less accumulated amortization of$59,752 and $51,415 Total assets 102,842 343,898 19/50 2,169

~90 24 558 7S3 203,787 164 247 1.431,741 144,476 343,921 19~

1,807 54 678 564 432 2,469 183,154 1,897 1.445.746 Long-tenn debt Subordinate Refunding Crossover Series Current liabilities:

Long-tenn debt due withinone year Accrued interest Accounts payable and acaued expenses Total cunent liabilities.

Commitments and contingcndes Total liabilities LIABILITIES 1 034 757 10,845 38,436 315 49 596 1,431,741

$ 1,042,002 347 782 14325 39/79 2,258 1,445.746

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS iin huus(tnds)

Opemting revenue:

Sales oftmnsmission services Operating expenses:

Other opemtions Maintenance Depreciation.

Total opcmting expenses Opcmting income Investment income Income before debt expense Debt expense Costs rccovemblc from fuhue billings to participants

$5297 10,192 5,236 20 329 49~0

($

20.633)

YavErukd June 30, 1995 11,839 4,498 19 735 36072 85,263

($

160(0)

&enotts t()fi)u(ntt((ltt()tt)ntnls.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAl STATEMENT OF CASH FLOWS (bi thou54uur51 Cash flows from operating activities:

Costs remvcrable from future billings to participants Adjustments to anivc at net cash provided by (used for) operating activities-Depreciation Amortization of debt msts Write-offofconstruction workin progress msts Changes in assets and liabilities:

Interest receivable Accounts receivable Other assets Accrued interest..

Accounts payable and accrued expenses Net cash provided by operating activities Cash flows from investing activities:

Payments forconstruction of facility Purchases ofinvestments

~ from sale/maturity ofinvestments Net cash provided by (used for) investing activities Cash flows from capital and related financing activities:

Payment for defeasance ofrevenue bonds Repayment ofprincipal on long-term debt Net cash used for capital and related flnancing activities Nct increase in cash and cash equivalents Cash and cash cqirivalents at beginning ofyear Cash and cash equivalents at end of>ear Supplemental disdosure ofcash flowinformation:

Cash paid during thc year for interest (nct ofamount capi~

($

20,633) 20329 11,739 1313 (362)

(218)

(943)

~7943 9282 (154,904)

~395 93 40 689 14,3

~243 35,646 90324 88370 Year Enkd June 30, 1995

($

1~)

19,735 11'15 1,940 17 10,773

~))

29 497 (315)

(94,425) 90 462

~4,278 (5,479)

~13 615 19 094 6,125 5

54.678

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FOR THE YEAR ENDED JUNE 30$ I996 ffn t 67usands)

GSnstnution Fund. Initial Dtt7t F8uititus Se727ite Ament Fund Cc7urul Ot7entting Fund teese727e Issue Fund Fund Balance at June 30, 1995 222 3

115959 8

6822 8

94N 77128 343S69

$~54 6N Additions:

Investment earnings Distribution of investment earnings Revenue from transmission sales Distribution ofrevenue..

Transfer from escrow forprincipal and interest payments 12 6,485 (5,710) 42,530 463 635 9,408 (596) 83,953 (78,891)

(5@03) 3,102 6,182 50,942 18~7 (9,284)

(9,278) 29,264 83,953

~1911 Total 12 56,216 14 933 ~264 N 226 5

126128 Deductions:

Operating expenses Payment ofprincipal Intcrcst paid Payment ofprincipal and interest on esaow bonds Premium and interest paid on investment purchases Other 41/76 1/921 1,267 39 14,904 14+25 14/25 19,286 60,862 26575 39,496 1/06 949 949 Total 55 764 14 9N 39 61 135 131 842 Balance at Junc 30, 1996 234 106,411 6.051 4,157 76,219 343,874 536,946 This schedule sununarizes the receipts and disbursements in funds ettuited under the Bond Indenture and has been prepared from thc tmst statements. The bahnces in the funds consist of cash and investments at original cost.These balances do not indude acaucd interest receivable of$2,169 and $1,807 at June 30, 1996 and 1995, respectively, nor do they indude total amortized net investment discounts of$2,983 and f4312 at June 30, 1996 and 1995, respectably.112ese bahnccs do not indude ueaeat'zcd loss on investmcnts in funds avaihble forsale of$2 865 and $ 1 897 at June 30, 1996 and 1995, respectively.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL BALANCESHEET tin thousanh)

Special funds:

Investments available for saic at fairvalue.

Advances forcapacity and energy, nct Interest receivable Cash and cash equivalents ASSETS 9,628 10,119 6

1 997 31 750 1995 7,653 11,903 26 2,745

~327 Accounts receivable Costs rcawcrable fiom future billings to partlcipants Unrealized loss on investments in funds availablc for sale..

Unamortize debt expenses, less accumulated amortization of$937 and $795 Total assets 19 7,538 3

~37 32,617 7,299 18 3

12 5

33.156 Long-tenn debt Current liabilities:

Long-term debt due withinone year Accrued interest Accounts payablc and accrued expenses Total current liabilities Commitments and contingencies Total liabilities LIABILITIES 3

30 931 1,085 489 62 1,636 32,617 31,977

. 610 500 69 1.179 33,156 SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS tin uhousan61$ )

Operating revenue:

Sales ofelectri energy Operating expenses:

Capacity charges..

Energy charges Other operations Reimbursement of advances for capacity and energy Total operating~............

Operating income Investment income Income before debt cxpcnse Debt expense Costs rmwerablc from future billings to participants 1996 3349 1,011 844 342 3

1,149 874

($

239)

Yrar&cbtfuno30, 1995 3W9 1,207 832 360 12 2,411

'1,158 514 1,672 MIO

($

693)

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS f178 rru7us457ds)

Cash flows from operating activities:

Costs recoverable from future billings to partidpants..

Adjustments to anivc at net cash used for operating activities:

Amortization ofdebt costs Changes in assets and liabilities:

interest receivable Accounts receivable Other assets Accrued interest Accounts payablc and accrued expenses Net cash provided by (used) foroperating activities Cash fiows from investing activities:

Purchases ofinvestments

~ from salelmaturity of investments Advances forcapacity and energy, net Nct cash used forinvesting activities Cash Qows from capital and related financing activities:

Payment for defeasance ofrevenue bonds Repayment ofprincipal on long-term debt..

Net cash used for capital and related financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at bcy'nning ofyear Cash and cash equivalents at cnd ofyear Supplemental disdosurc ofcash Row information:

Cash paid during ycar forinterest (net of amount capitalized) 1996

($

239) 294 20 (19)

(22,665) 20,705 1,784 610 610 (748) 2,745 1,997 5

1.978 Yi44rEekd fuze 30, 1999

($

638) 21 (18)

~94 (11~6) 9,491 1 415

~640 (319)

~860 1 179 5451 5

0,745 2059

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FOR THE YEAR ENDED JUNE 30$ I996 (tn thousanA)

Wortdng Fund Dtbt Debt Stroke G$7ural S$7$7irc Rtsrrre Rts$ 7225 Am7unt Ament Ament Tbtal Balance at June 30, 1995

$~410 3

u0 1435 3018

~$

876

$~10 64 Additions:

Investment earnings Distribution ofinvestment earnings Discount on investment purchases Revenue from paver sales.....

Distribution ofrevenues Thnsfer from escrow for principal and interest payments Total 16 193 85 2

2 (2) 256 43 3,330 165 (3,342)

~2393 147 ~751

~099 355 (29) 3.177

~433 5 842

~382 37 ~383 33 1S2 3

(90)

(11S)

(213) 289 211 628 3,330

~318

~613 Deductions:

Advances for capacity and energy Payment ofprincipal Administrative expenditures Interest paid Premium on investment p~........

Payment ofprincipal and interest on escrow bonds 75 117 610 1,978 24418 37 75 610 348 1,978 37 70418 Total Balance at June 30, 1996 311 117 4 906 37 560

&71 3,083 5,259 11511 This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust statements.'Ihe bahnces in the funds consist ofcash and innstmcnts at orighai cost These balances do not indude accrued interest rcccivablc of$6 and $26 at June 30, 'l996 and 1995, respectively, nor do they indude total amortized net investment discount of$117 and $52 at June 30, 1996 and 1995, respectively.'Ihese bahnces aho do not indude~ loss on investments in funds avaihble forsale of$3 and $18 at June 30, 1996 and 1995, respectively.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-PHOENIXPROJECT SUPPLEMENTAL BALANCESHEET 119$~)

Utilityplant:

Transmission Geneml Less: Accumulated depreciation ASSETS 48/07 1 921 50,278 846 1995 Construction work in progress Net utilityplant..

Special funds:

Investments available for sale at fairvalue Interest receivable Cash and cash equivalents Accounts rcccivable Costs recoverable from future billings to participants Unrealized loss on investments in funds available for saIc Prepaid expense Unamortized debt expenses, less accumulated amortization of$1,257 and $736.

49,432 3 116 5~8 21591 841 1~8 1,750 1+94 9

26 89595 39119 39,179 32,759 1,246 1 280 35 285 1,963 51 2,003 10 608 88.889 Long-term debt Current liabiTitics:

Acaucd interest Accounts payable Total current liabilities.

Commitments and contingencies Total liabiTities LIABIUTIES 86,417 2,588 590 3,178 89395 86,267 88.889

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD PHOENIX PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS THREE MONTHS ENDED JUNE 30$ 1996*

fin housan4ts)

Operating revenue:

Sales of tmnsmission services Operating expenses:

Other operations Maintenance Depredation Total operating expenses Investment income Income before debt expense Debt expense Costs recoverable from future billings to participants 213 13 342 (342) 410 1462

($

1264)

See notes lofinancid stalen$ ents

'Operations commenced April1996.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-PHOENIXPROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS f/2$ 6$6uSa226b)

Cash flows from operating activities:

Cost recoverable from future billings to participants Adjustments to amve at net cash provided by (used for) operating activities:

Depreciation Amortizafion ofdebt costs..

Changes in assets and liabilities:

Intcrcst receivable..

Accounts receivable Other assets Accounts payable Net cash provided by operating activities.

Cash flows from investing activities:

Interest received on investmcnts Payments forconstruction offacility Purchases ofinvestments Proceeds from sale/maturity ofinvestments Reimbursement fromWAPA..

Nct cash (used for) provided by investing activities Cash flmvs from capital and related financing activities:

Payment ofinterest on long-term debt..

Payment forbond issue costs Net cash used forcapital and related finandng activities Net Increase in cash and cash equivalents Cash and cash equivalents at beginning ofyear Cash and cash equivalents at end ofyear Supplemental disdosure ofcash flowinformation:

Cash paid during the period for interest (net of amount capitalized) 1 94 342 167 405 213 1,977 556 (13,208)

(3,264) 16L474 1 280 2668 1995 4,251 (21410)

(2,725) 26,078 83 6 312 (5,093)

~8 5 102 1,275 1.2M

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD PHOENIX PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FORTHE YEAR ENDED JUNE 30$ 1996 tin thus427uh)

Dd7t

$$727ue Sc777k>>

R2s$ 727s It7n7rnus issue Otscnt ting Aaount 6tc727unt Fund Fund Fund Tbt6d Balance at June 30, 1995 18972 4288 8916 4994 34,170 Additions:

Investment earnings

'itansfer ofinvestments Reimbursement from WAPA

'iiansmission revenue...

Transfer ofmonthly transmission costs Total Deductions:

Construction <<xpendihues Interest paid Premium and interest paid on investment purchases Operating expenses..

1 644 435 (435)

~2!t7t 89 2,441 80 360 297 297

~881 8~

5,176 89 60 8,536 2,642

~629 60

'13,861 Nance at June 30, 1996 12,080 2367 5,916 65 Z525 237 23,190 1Ius schedule sununarizcs the receipts and isbursemcnts in funds~ under the Bond Indenture and has been prepared from the trust statements.1hc balances in the funds consist of cash and investments at orighal cost.'Ihese balances do not indude accrued intent receivable of $841 and $1,246 at June 30, 1996 and 1995, respectively, nor do they indude total amortized net investment premiums of$42 and $80 at June 30, 1996 and 1995, respecuvely. 1hese balances do not indude unrealized loss on investments in funds available for sale of

$9 and $51 at June 30, 1996 and 1995, espectimly.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD ADELANTOPROJECT SUPPLEMENTAL BALANCESHEET fin thousands)

UtiTityplant:

Transmission General Less: Accumulated depreciation Construction work in progress Net utilityplant..

Special funds:

Investments available for sale at fair value Interest receivable Cash and cash equivalents Accounts receivable Costs recoverable from future billings to participants Unrealized loss on investments in funds available for saic ASSETS 1996 171,068 164 171 232 1 255

'169 977 62,562 2,285 69 1

4,741 jun@ 30 1995 154 011 154 011 76,235 2,976 4,279 4,669 Prepaid expense Unamortized debt expenses, less accumulated amortization of$3582 and $2,098 Total assets 28125 276,669 29 607 275.481 Long-term debt Current liabilities:

Accrued interest Accounts payable Total current liabilities.

Commitments and contingencies Total liabilities LIABILITIES 7,884 780 8,664 276,669

~$

267 61 7,885 35 278,481

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS THREE MONTHS ENDED JUNE 30s 1996*

tIn t7asananh)

Operating revenue Sales oftransmission services Opcratlng expenses:

Other operations Maintenance Depredation Total operating expenses Operating loss Investment income Income before debt expense Debt expense Costs recoverable from future billings to participants 172 145 27 1 132 1 132 1 174 42 4,425 (3

3233)

See notes tofinancia statements.

'Operations commenced April1996.

SOUTHERN CALIFORNIAPUIILIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS tin thousands)

Cash flows from opemting activities:

Cost recoverable &omfuture billings to participants Adjustments to anive at net cash provided by (used for) operating activities:

Depreciation Amortization ofdebt costs.......

Changes in assets and liabilities:

Interest receivable..

Accounts receivable Prepaid expense Acaued interest Accounts payable Net cash provided by operating adivities.

Cash flows from investing activities:

Interest received on investments..

Payments forconstruction of facility Purchases ofinvestments Proceeds horn sale/maturity of investments Rcimburscment fromWAPA........

Nct cash (used for) provided by investing adivities Cash flows from capital and related financing activities:

Payments ofinterest on long-term debt Payment forbond issue costs Net cash used forcapital and related Gnancing activities Net increase in cash and cash cquivalcnts Cash and cash equivalents at beginning ofyear Cash and cash equivalents at cnd ofyear Supplemental disdosure ofcash flowinformation:

Cash paid during the period for interest (net of amount capitalized) 1996

($

4+83) 1.132 482 691 (72) 3,467 (I) 745 (15,652)

(9,184) 23,000 4 279 4~

1995 11+16 (71,033)

(4,627) 84,113 19797 (15,487)

~$ 7 15 18 4,279 4.279

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FOR THE YEAR ENDED JUNE 300 I996 fin thousands)

Acquisition Aemunl Debt Shia Aimunt Debt

$7727ioe Reseirle Operating Issue Reoenue Aemunt Fund Fund Fund Tbta!

Balance at June 30, 1995 3

36,134 S

11793 S

16267 3

S 16,760 S

Additions:

Investment camings Transfer ofinvestment earnings Reimbursement from WAPA.

Transfers to opemting fund Tmnsmission revenue 3,217 13 772 1,196 1,196 (1,196) 451 517 1

S,704 13 (451) 521 521 Total 3 230

'1,968 452 517 Deductions:

Construction expenditures Interest paid Premium and interest paid on investment purchases Operatmg expenses Total 3,697 7,264 2

3 699 7 264 189 8,505 298 3,697 15,769 298 191 189 0840 19 93S Mance at June 30, 1996 3

6497 3

16.267 S

263 8,474 71 3

67.237 1Ms schedule summarizes the receipts and d'sbursements in funds requital under the Bond Indenture and has been prepared from the trust statements. The bahnces in thc funds consist ofcash and investments at origlnal cost. These balances do not indude acctucd interest receivable of$2285 and $2,976 at June 30, 1996 and 1995, rcspomvcly, nor do they indude total amortized nct investment premiums of$143 and $269 at June 30, 1996 and 1995, ~vcly.These balances do not indude unrealized loss on investments in funds available for sale of

$28 and $171 at June 30, 1996 and 1995, respectively.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL BALANCESHEET tin thousands)

Special funds:

Investments available for saic at fair va!ue Interest receivable Total assets ASSETS 1996 250,888 9220 260,108 June 30, 1995 249,020 9 194 258.214 LIABILITIES Long-term debt Arbitrage rebate payablc Accounts payable to Mead-Phoenix Project and Mead-Adelanto Project Deferred credits Current liabilities:

Accrued interest Commitments and contingcncics

'otal liabilities

$~24 786 6 402 8,256 5

u0,108 242,107 6,632 1,141 8 257 258.214 SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLEPROJECT FUND SUPPLEMENTAL STATEMENT OF CASH FLOWS flnthousands)

Cash flows from operating activities Cash flows from investing activities:

Interest received on investments Arbitrage payment Purchases of investmcnts

~ from sale/maturity ofinvestmcnts Net cash provided by investing activities Cash flows from capital and related financing activities:

Payments ofinterest on long-term debt Nct cash used forcapital and financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning ofyear Cash and cash cquivalcnts at cnd ofyear 18+80 (1,868)

~I6 12 16 12 16512 Year Ended June 30, 1995 18,470 (3,757)

(1,958) 3 757 16/12 16 12 16 12 Sre notre tofina7dal ttaten7enls.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLEPROJECT FUND SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FOR THE YEAR ENDED JUNE 3031996 ff72~)

Mance at June 30, 1995 247 727 842772ingS 44274472t 1 293 249020 Additions:

investment earnings......

Transfer to earnings account Transfer to debt service account 18,208 (16512) 16 12 172 16412

~16 512 18,380 Total Deductions:

interest paid Total Balance at June 30, 1996 249,423

~16 12

~16 12 16 512 172

~13 16 512

~16 12 S

1,465 This schedule summarizes the receipts and disbursements in funds required under the Bond indenture and has been prepared from the trust statements.1he Mances in the funds consist of investments at original cost.'Ihese balances do not indude accrued interest receivable of$9,220 and $9,19I at June 30, 1996 and 1995, espectbely.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN jUAN PROIECT SUPPLEMENTAL BALANCESHEET t17$ 4$627nids)

Utilityphut:

Production General Less - Accumulated depreciation Construction work in process Net utilityplant.

Special funds:

Investments available for sale at fairvalue Interest receivable Cash and cash equivalents Accounts receivable..

Materials and supplies Costs recoverable from future billings to participants ASSETS 183,309 8613 191,922 36 622 155+00

~31 158 Ml 34,170 67 7 546 41,783 3~9 31,780 1995 183~

7 688 190,997 24,415 166/82 2,488 169 070 28,699 69 8 274 37,042 1,891 3,679 Unrealized loss (gain) on investments in funds availablc for sale Unamortized debt expenses, less accumulated amortization of$942 and $628 Total assets 239,972 (28) 3,461 238,178 Long-term debt Current liabilities:

Long-tenn debt due withinone year Accrued interest Accounts payable Total current liabiTitics.

Commitments and contingencies Total liabilities LIABILITIES 222,444 6,035 5,994 5,499 17528 239.972 S

228,167 5,994 4,017 10,011 238.178

SOLITHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS fin Ohuusan)ts)

Operating revenue:

Sales ofelectric energy Operating expenses:

Other operations Maintenance Depreciation Decommissioning Total operating expenses Operating income (loss)

Investment income Income before debt expense Debt cxpcnsc Costs recoverable from future billings to participants 1996 50 117 314 35,760 9,095 3 113 48 282 1,835 3,897 1

614 (S

8,717) year Ended june A, 1995 316 38511 9,095 3 112 51 534 (180) 1/70I

~1595

($

13894)

Sa notes tofinane2a!

statemaine.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT

'SUPPLEMENTAL STATEMENT OF CASH FLOWS fin~)

Cash flows from operating activities:

Costs recoverable from future billings to participants Adjustments to arrive at net cash provided by (used for) operating activitics-Depreciation Decommissioning costs Amortization of debt costs..

Changes in assets and liabilities:

Interest receivable Accounts receivable Materials and supplies Other assets Accounts payable Net cash provided by operating activities Cash flows from inv4csting activities:

Payments forconstruction offacility Purchases ofinvestments Proceeds from sale/maturity ofinvestments Net cash used forinvesting activities Nct decrease in cash and cash equivalents...

Cash and cash equivalents at beginning ofyear Cash and cash equivalents at cnd ofyear Supplemental disclosure ofcash flowinformation:

Cash paid during the year for interest (net of amount capitaliizcd)

($

8,717) 9,095 3113 626 2

946 110 56 1482 6 713 (1,938)

(14370) 8 S67 441 (728) 8 274 7~6 11,988 Yem Ended June 30, 1995

($

10,894) 9,095 3112 610 (59)

(669) 1/40 81 711

~327 (1,861)

(12749) 19 918 3 692 (365) 8639 8

8.274 3

11.988

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BYTHE BOND INDENTURE FOR THE YEAR ENDED JUNE 300 1996 f178~)

Mance at June 30, 1995 Debt Drt7t $57$48te Stroke Rsme 44$27477r 44828477r 1 &93 112 5,994 18,025 11 179 36943 Additions:

Investment earnings Distribution ofinvestment earnings Discount on investment purchases...

Revenue from power sales Distribution of revenues Refund from Cenhuy IbwcrCorporation 32 54 1,945 (64) 4 10 S2933 (54,914) 38,249 12 54 1,061 (168)

(1,061) 114 14+15 537 (652) 112 2,145 1,750 242 S2,933 400 Total 38 249 414

~14 15

~142

~55 25 Deductions:

Payment forconstruction..

Administmtive <<xpcnditures Interest paid Total Mance at June 30, 1996 1,938 36,691 38 629 1,253 11 988 11 988 1,938 36,691 11 983 50617 5

526 8621 18025 13021 41651 1hts schedule surnmarizcs the receipts and ~cuts in funds rc4luired under the Bond Indenture and has been prepared from the trust statements.lhe balances in the funds consist of cash and investments at original cost. 1hese balances do not indudc accrued intent receivable of $67 and $69 at June 30, 1996 and 1995, respectively, nor do they indude total amortized net investment discount of$69 and $2 at June 30, 1996 and 1995, respectively. These balances do not indude unrealized loss (gain) on Investments in funds available for sale of

$4 and ($28) at June 30, 1996 and 1995, respectively.

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0

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~ ~

~

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~

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SOUTHERN CALIF<ORNIA PUBLIC POWER AUTHORITY REPORT AND FINANCIALSTATEMENTS AND SUPPLE<MENTAL FINANCIALINFORMATION JUNE 80, 1996 AND 1998

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400 South Hope Street Telephone 213 236 3000 Los Angetes, CA 90071.2889 Price Paterhouse Lsz REPORT OF INDEPENDENT ACCOUNTANTS September 10, 1996 To the Board of Directors of the Southern California Public Power Authority In our opinion, the accompanying combined balance sheet and the related combined statements of operations and of cash flows present fairly, in all material respects, the financial position of the Southern California Public Power Authority (Authority) at June 30, 1996 and 1995, and the results of its operations and its cash flows for the years then ended in conformity with generally accepted accounting principles.

These financial statements are the responsibility of the Authority's management; our responsibility is to express an opinion on these financial statements based on our audits.

We conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement.

An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.

We believe that our audits provide a reasonable basis for the opinion expressed above.

In our opinion, the accompanying separate balance sheets and the related separate statements of cash flows of the Authority's Palo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project, Multiple Project Fund and San Juan Project and the separate statements of operations of the Authority's Palo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project, and San Juan Project present fairly, in all material respects, the financial position of each of the Projects at June 30, 1996, and their cash flows, and the results of operations of the Authority's Palo Verde Project, Southern Transmission System Project, Hoover Uprating Project, Mead-Phoenix Project, Mead-Adelanto Project and San Juan Project for the year then ended in conformity with generally accepted accounting principles.

These'inancial statements are the responsibility of the Authority's management; our responsibility is to express an opinion on these financial statements based on our audits.

We, conducted our audits of these statements in accordance with generally accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement, An audit includes examining, on a test basis, evidence

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The Board of Directors September 10, 1996 Page 2 supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation.

We believe that our audits provide a reasonable basis for the opinion expressed above.

Our audits were conducted for the purpose of forming an opinion on the basic financial statements taken as a whole.

The supplemental financial information, as listed on the accompanying index, is presented for purposes of additional analysis and is not a required part of the basic financial statements.

This information is the responsibility of the Authority's management.

Such information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as a whole.

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SOIyfHERN CALIFORNIAPUBLIC POWER AUTHORITY CotfBI D B A

(in thousands)

Palo Verde Em'outhern Transmission System

~&oaf Hoover Uprating Emmy une 30 hfead-Phoenix hfead-hfultiple Adelanto Project JMaL ~id San June 30, Juan 1995

~t~a Utilityplant:

Production Transmission Ceileral 613,608 14,146 S

674,606

~~5

~88 48/07

~7

$ 171,068 164 S 183,309 8~

967,985 795,080

'?37,223 689,447

~228't ~2 1K Less - Accumulated depreciation 630,323 693,499

~9dhU, ~JRI 50,278 171,232

~u 191,922 1,737,254 1,513,682

~KfbIR ~2JUl Construction work in progress

'Nuclear fuel, at amortized cost 380@02 9/03

~225 499,372 49,432 3,116 169,977 155,300 1,254,383 1,09f,994 3,501 16,120 206,573

~iu

'Net utility plant Special funds:

Available for sale at fair value (Note 2):

Decommissioning fund

'Investments Escrow account - Crossover series Advance to Intemountaln Power Agency

<<Advances for capacity and energy, net Interest receivable Cash and cash equivalents 33,474 115,746 1,512

~7879 102,842 S

9,628 343,898 19+50 10,119 2,169 6

90 374 I 2u 403 030

~92~37

~880

~uz773 ~34 83 24403 682,442 343,921 19,550 11,903 16~1

~9hlQ 33,474 21491 62462 S 250,888 34,170 597,427 343,898 19+50 10,119 811 2485 9/20 67 16,100

~725 ~73 XK

~53u 438783 21730 73980

~2a4<<

MOtu25 ~LJ>u ~7~3! ~26u Accounts receivable hlaterials and supplies Costs receive from future billings.to participants

'Unrealized loss on investments in funds available for sale

,Prepaid construction costs Prepaid expenses Unamortized debt expenses, less accumulated amortization of $132,265 and $127,197 in 1996 and 1995 738 9,240 20I,9IS 456 2,687 19 1,750 203,787 7+38 1@9h 4,741 2,865 (6,402) 9IS 3/69 313780 4,478 12,809 5,272 13,297 453,827 411,031 28 3,365 2@35 59536 26

~07 ~888

~28 2

3 090 ~4348

~42 508 t J 01~73

~1431 741

~32 617 ~89 595 aata~660

~253 706

~23 7g

~3366 0 3 t 3 ~00 73 Long-turn debt 981,155 5 1,034,757 30,981 86,417

$ 268,005 S 242,786 3 222,444 5 2,866,545

$ 2,894,471 Subordinate Refunding Crossover Series Ariiitrage rebate payable Defencd credits 347@88 2,664 347,388 2,664 347,782 77 1,141 Cuncnt liabilities:

Long.tenn debt due within one year

'Accrued interest Accounts payable and accrued expenses Total cuncnt liabilities 25,690 10,845 1,085 6,035 43,655 38,790 24435 38,436 489 2,588 7,884 8,256 5,994 88,182 95,288

~333 ~3 ~ ~90 7110

~22 ~'~7 23 183

~suit ~49 06 I &16 ~78 ~l~ ~852 ~728 ~4~

~z22!2 Comiuitmcnts and contingencies

~II'~13

~43~74

~32 6 7 ~IIO505

~276 669

~25 706

~23

~07

~~3~03

~!I400 73 The accompanying notes arc an inteyal part of these {inancial statements.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY COMBINED STATEMENT OF OPFRATIONS (In thousands)

Year Ended une 30 1996 Southern Palo Transmission Hoover Verde System Uprating

~Pro'ect

~Pro'ect

~Pro eat Mead-Phoenix

~Pro'act Mead-Adelanto San Juan

~Pro'ect

~Pro ect Total Year Ended June 30, 1995 Operating revenues:

Sales of electric energy Sales of transmission services S 135,464 85 297 S

3,349 S

50,117 S 188,930 S 183,603 226 g

172 85 695 91 250 Total operating revenues 135 464 85 297 3 349 226 172 50 117 274 625 274 853 Operating cxpcnses:

Amortization of nuclear fuel Other operations Maintenance Depreciation Decommissioning 7,949 25,815 6,317 18,425 12 497 10,192 2,200 5,236 20,329 213 13 342 145 27 1,132 314 35,760 9,095 3 113 7,949 38,879 47,353 49,323 15 610 8,150 39,873 50,834 47,975 16 513 Total operating expenses 71 003 35 757 2 200 568 1 304 48 282 159 114 163 345 Operating income (loss)

Investment income Income before debt expense 64,461 49,540 75,347 78,533 10 886 28 993 1,149 874 2,023 (342) 410 68 (1,132) 1,835 115,511 3,897 159,910 1 174 2 062 44 399 111,508 23 884 135,392 Debt expense 82 777 99 166 2 262 1 462 4 425 12 614 202 706 174 140 Costs recoverable from future billings to participants

~7430

~20 633

~239

~1394

~4383

~8717

~42 796

~38 748 The accompanying notes are an integral part of these financial statements.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY 8

M W

(In thousands)

Cash flows from operating activities:

Costs recoverable from I'uture billings to participants Adjustments to arrive at net cash provided by (used for) operating activities-Depreciation Decommissioning Amortization of nuclear fuel Amortization of debt costs Write-offof construction work in progress costs Changes in assets and liabilities:

Decommissioning I'und Interest receivable Accounts receivable hlaterials and supplies

'Other assets Accrued interest Accounts payablc and accrued expenses Net cash provided by operating activities (S

7,430)

(S 20,633)

(S 239)

(S 1,394)

(S 4,383) 18,425 12,497 7,949 24,428 20/29 342 1,132 11,739 294 167 482 1,313 (8,971)

(289) 174 378 55 (6,150)

~6823 (362)

(218) 20 (19) 405 213 1,977 (943)

(11)

~2653 ~ ~jd 691 (72) 3,467 (I)

~2IZ 9S ~266 ~06 Palo Southern Hoover hfead-hfead-hfultiplc Verde Transmission Uprating Phoenix Adelanto Project 205991 2252052272991

&0555>

U22j2a U4225a Year Ended San June 30, Juan 1995 Total 9,095 3,113 626 49,323 15,610 7,949 379736 47,975 16,513 8,150 29,050 1,313 2

946 110 56 (8,971) 467 1,024 488 5,555 (7,105)

~56OQ (1,297) 437 1,402 2,069 117 10,036

~QK (S

8,717)

(S 42,796)

(S 38,748)

Cash flows from investing activiticst Interest received on investments Arbitrage payment Pa>ments for construction of facilities Purchases of investments Proceeds from sale/maturity of investments Advances for capacity and energy, net Reimbursement from WAPA (10,892)

(154,685)

(154,904) 182,309 195,593 (22,665) 20,705 19784 (13,208)

(3,264) 14,474 (15,652)

(9,184) 23,000 S

18,380 (1,938)

(1,868)

(14@70) 8,867 18@80 (41,690)

(360,940) 444,948 1,784 34,037 (3,757)

(104,088)

(230,693) 299,265 1,415

~1 Net cash provided by (used for) investing activities

~473 40 659 Qyyjj ~zjjy ~22j ~hjz ~yddjj ~62 0 ~37 0

Cash flows from capital and related financing activities:

Payments of interest on long-term debt Proceeds from sale of bonds Papncnt for defeasance of revenue bonds Repapnent of principal on long.term debt

'Pa>ment for bond issue costs 229,483 (233,632)

(23,855)

~403 (14325)

(610)

(16512)

(16,512)

(37,092) 229,483 (233,632)

(5,798)

(38,790)

(36,900)

~484 ~40j Net cash used for capital and related financing activities M2R)

UkhRS ~7dQS Net increase (decrease) in cash and cash equivalents 18,525 35,646 (748) 268 225 (728) 53,188 (4,746)

~K@II ~~ ~K ~12

~I~ ~ME ~~3k Cash and cash equivalents at beginning of year C

h d

h~141 I 0 d fy

~67II7 Supplemental disclosure oi'ash flow inforrnationt Cash paid during the year for interest (net of amount capitalized) hZ0~%S j~t7 ~540

~4507 t

~7546 5 173 798

~120 610 jy 64 49z

~00 37II ~ja70 t, s,

~6us ~II 903 ~87 347 ~00 700 The accompanying notes arc an Integral part of these flnancial statements.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY NOTES TO I INANCIALSTATEMENTS NOTE 1 - ORGANIZATIONAND PURPOSE:

Southern California Public Power Authority (Authority), a public entity organized under the laws of the State of California, was formed by a Joint Powers Agreement dated as of November 1, 1980 pursuant to the Joint Exercise of Powers Act of the State of California.

The Authority's participant membership consists of ten Southern California cities and one public district of the State of California. The Authority was formed for the purpose of planning, financing, developing, acquiring, constructing, operating and maintaining projects for the generation and transmission of electric energy for sale to its participants.

The Joint Powers Agreement has a term of fifty years.

The members have the following participation percentages in the Authority's interest in the projects at June 30, 1996 and 1995:

~Partici ants Southern Palo Transmission Hoover Mead-Mead-San V

s s

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Ad]

City of Los Angeles City of Anaheim City of Riverside Imperial Irrigation District City of Vernon City of Azusa City of Banning City of Colton City of Burbank City of Glendale City of Pasadena 6.5 4.9 1.0 1.0 1.0 4.4 4,,4, 4,.4.

4.5 2.3 5.9 67.0%

59.5%

17.6 5.4 10.2 42.6%

31.9 4.2 2.1 3.2 16.0 51.0%

1.0 1.0 1.0 15.4 14.8 13.8 14.7 9.8 14.7 2.2 1.3 2.6 11.5 11.1 9.8 8.6 24.8%

35.7%

24.2 13.5 4.0 13.5

~l. %

~1, %

~1 The members do not currently participate in the Multiple Project Fund.

Mead-Phoenix participation reflects three ownership components (see below).

Palo Verde Pro'ect The Authority, pursuant to an assignment agreement dated as of August 14, 1981 with the Salt River Project (Salt River), purchased a 5.91% interest in the Palo Verde Nuclear Generating Station (PVNGS), a 3,810 megawatt nuclear-fueled generating station near Phoenix, Arizona, and a 6.55% share of the right to use certain portions of the Arizona Nuclear Power Project Valley Transmission System (collectively, the Palo Verde Project).

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NOTE 1: (Continued)

As of July 1, 1981, ten participants had entered into power sales contracts with the Authority to purchase the Authority's share of PVNGS capacity and energy.

Units 1, 2 and 3 of the Palo Verde Project began commercial operations in January 1986, September 1986, and January 1988, respectively.

Southern Transmission S stem Pro'ect The Authority, pursuant to an agreement dated as of May 1, 1983 with the Intermountain Power Agency (IPA), has made payments-in-aid of construction to IPA to defray all the costs of acquisition and construction of the Southern Transmission System Project (STS), which provides for the transmission of energy from the Intermountain Generating Station in Utah to Southern California. The Authority entered into an agreement also dated as of May 1, 1983 with six of its participants pursuant to which each member assigned its entitlement to capacity of STS to the Authority in return for the Authority's agreement to make payments-in-aid of construction to IPA.

STS commenced commercial operations in July 1986.

The Department of Water and Power of the City of Los Angeles (LADWP), a member of the Authority, serves as project manager and operating agent of the Intermountain Power Project (IPP).

Hoover U ratin Pro'ect The Authority and six participants entered into an agreement dated as of March 1, 1986, pursuant to which each participant assigned its entitlement to capacity and associated firm energy to the Authority in return for the Authority's agreement to make advance payments to the United States Bureau of Reclamation (USBR) on behalf of such participants.

The USBR has declared that the Project was substantially complete as of September 30, 1995 with minor work scheduled to be completed in the spring of 1997.

The Authority has an 18.68% interest in the contingent capacity of the Hoover Uprating Project (HU). All seventeen "uprated" generators of the HU have commenced commercial operations.

Mead-Phoenix Pro'ect The Authority entered into an agreement dated as of December 17, 1991 to acquire an interest in the Mead-Phoenix Project (MP), a transmission line extending between the Westwing substation in Arizona and the Marketplace substation in Nevada.

The agreement provides the Authority with an 18.31% interest in the Westwing-Mead project component, a 17.76% interest in the Mead Substation project component and a 22.41% interest in the Mead-Marketplace project component.

The Authority has entered into transmission service contracts for the entire capability of its interest with nine members of the Authority on a "take or pay" basis.

In addition, the Authority has administrative responsibility for accounting for the separate ownership interest in the project by Western Area Power Administration (WAPA), who is providing separate funding (872,874,000 and 858,676,000 at June 30, 1996 and 1995, respectively) for its interest.

Commercial operations of MP commenced in April 1996.

Funding was provided by a transfer of funds from the Multiple Project Fund (Note 4).

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NOTE 1: (Continued)

Mead-Adelanto Pro'ect The Authority entered into an agreement dated as of December 17, 1991 to acquire a 67.92%

interest in the Mead-Adelanto Project (MA), a transmission linc extending between the Adelanto substation in Southern California and the Marketplace substation in Nevada.

The Authority has entered into transmission service contracts for thc entire capability of its interest with nine members of the Authority on a "take or pay" basis.

In addition, thc Authority has administrative responsibility for accounting for the separate ownership interest in the project by WAPA, who is providing separate funding (817,088,000 and 816,282,000 at June 30, 1996 and 1995, respectively) for its interest.

Funding was provided by a transfer of funds from the Multiple Project Fund (Note 4).

Commercial operations commenced in April 1996.

LADWP serves as both construction manager and operations manager.

Multi le Pro'ect Fund During fiscal year 1990, the Authority issued Multiple Project Revenue Bonds for net proceeds of approximately 8600 million to provide funds to finance costs of construction and acquisition of ownership interests or capacity rights in one or more then unspecified projects for the generation or transmission of electric energy.

In August 1992, the Authority's Board of Directors approved a resolution authorizing the use of certain proceeds of Multiple Project Revenue Bonds to finance t)ie Authority's ownership interests in the Mead-Phoenix and Mead-Adelanto projects.

Transfers made from the Multiple Project Fund are sufficient to provide for the Authority's sharc of the estimated costs of acquisition and construction of these two projects, including reimbursement of planning, development and other related costs.

Effective July 1, 1993, the Authority purchased a 41.80% interest in Unit 3, a 488 megawatt unit and related common facilities, of the San Juan Generating Station (SJGS) from Century Power Corporation.

Unit 3 is one unit of a four-unit coal-fired power generating station in New Mexico.

The Authority allocated the $193 million purchase price to the estimated fair value of the utility plant (8190 million) and to materials and supplies (83 million). The purchase has been financed through the issuance of approximately $237 million (par value) of San Juan Project Revenue Bonds.

The Authority has entered into power sales contracts for thc entire capability of its interest with five members of the Authority on a "take or pay" basis.

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NOTE 2 -

SUMMARY

Ol SIGNIFICANTACCOUNTING POLICIES:

The financial statements of the Authority are presented in conformity with generally accepted accounting principles, and substantially in conformity with accounting principles prescribed by the Federal Energy Regulatory Commission and the California Public Utilities Commission.

The Authority is not subject to regulation by either of these regulatory bodies.

The financial statements represent the Authority's share in each jointly-owned project.

The Authority's share of direct expenses of jointly-owned projects are included in the corresponding operating expense of the statement of operations.

E<ach owner of the jointly-owned projects is required to provide their own financing.

~Utilit Plant The Authority's share of all expenditures, including general administrative and other overhead

expenses, payments-in-aid of construction, interest net of related investment income, deferred cost amortization and the fair value of test power generated and delivered to the participants are capitalized as utility plant construction work in progress until a facility commences commercial operation.

The Authority's sharc of construction and betterment costs associated with PVNGS is included as utility plant.

Depreciation expense is computed using the straight-line method based on the estimated service life of thirty-five years.

Nuclear fuel is amortized and charged to expense on the basis of actual thermal energy produced relative to total thermal energy expected to be produced over the life of the fuel.

Under the provisions of the Nuclear Waste Policy Act of 1982, the Authority is charged one mill per kilowatt-hour, by the federal government, on its share of electricity produced by PVNGS, and such funds will eventually be utilized by the federal government to provide for PVNGS'uclear waste disposal.

The Authority records this charge as a current year expense, The Authority's share of construction and betterment costs associated with STS, MP, MA and SJGS are included as utility plant.

Depreciation expense is computed using the straight-line method based on the estimated service lives, principally thirty-five years for STS, MA and MP and twenty-one years for SJGS.

Interest costs incurred by the MP and MA projects through the date commercial operations commenced (April 1996) are capitalized in utility plant.

Total interest costs capitalized were 811,827,000 and 315,769,000 in fiscal 1996 and 1995, respectively, for the MA project and 83,881,000 and 85,175,000 in fiscal 1996 and 1995, respectively, for the MP project.

Advances for Ca acit and Ener Advance payments to USBR for the uprating of the 17 generators at the Hoover Power Plant are included in advances for capacity and energy.

These advances are being reduced by credits on billings to participants for energy and capacity.

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NOTE 2: (Continued)

Nuclear Decommissionin Decommissioning of PVNGS is projected to commence subsequent to the year 2022.

Based upon an updated study performed by an independent engineering firm, the Authority's share of the estimated decommissioning costs is $85.5 million in 1995 dollars (8390 million in 2022 dollars assuming a 6% estimated annual inflation rate).

The Authority is providing for its share of the estimated future decommissioning costs over the remaining life of the nuclear power plant (25 to 27 years) through annual charges to expense which amounted to 812.5 million and 813.4 million in fiscal 1996 and 1995, respectively.

The decommissioning liability is included as a component of accumulated depreciation and was 888.1 million and $75.6 million at June 30, 1996 and 1995, respectively.

A Decommissioning Fund has been established and partially funded at $33.9 million at June 30, 1996.

The Decommissioning Fund earned interest income of 5700,000 during fiscal 1996.

Demolition and Site Reclamation Demolition and site reclamation of SJGS, which involves restoring the site to a "green" condition which existed prior to SJGS construction, is projected to commence subsequent to the year 2014.

Based upon a study performed by an independent engineering firm, the Authority's share of the estimated demolition and site reclamation costs is $18.7 million in 1992 dollars (865.3 million in 2014 dollars using a 6% estimated annual inflation rate).

The Authority is providing for its share of the estimated future demolition costs over the remaining life of the power plant (18 years) through annual charges to expense of $3.1 million. The demolition liability is included as a component of accumulated depreciation and was 89.3 million and 86.2 million at June 30, 1996 and 1995, respectively.

As of June 30, 1996, the Authority has not billed participants for the cost of demolition nor has it established a demolition fund.

Unamortized Debt Ex enses Unamortized debt issue costs, including the loss on refundings, are being amortized over the terms of the respective issues and arc reported net of accumulated amortization.

Total deferred loss on refundings, net of accumulated amortization, was $378,070,000 and $393,440,000 at June 30, 1996 and 1995, respectively.

Investments Investments include United States Government and governmental agency securities and repurchase agreements which are collateralized by such securities.

Additionally, the Mead-Phoenix Project, the Mead-Adelanto Project and the Multiple Project Fund's investments are comprised of an investment agreement with a financial institution earning a guaranteed rate of l

I 4(

c a~'

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NOTE 2:

(Continued) return.

The Southern Transmission System Project has debt service reserve funds associated with the 1991 and 1992 Subordinate Refunding Series Bonds invested with a financial institution under a specific investment agreement allowed under the Bond Indenture earning a guaranteed rate of return.

Investments available for sale are carried at aggregate fair value and changes in unrealized net gains or losses are recorded separately.

Investments are reduced to estimated net realizable value when necessary for declines in value considered to be other than temporary.

Gains and losses realized on the sale of investments are generally determined using the specific identification method.

As discussed in Note 3, all of the investments are restricted as to their use.

Cash and Cash E uivalents Cash and cash equivalents include cash and all investments with original maturities less than 90 days.

Revenues Revenues consist of billings to participants for the sales of electric energy and of transmission service in accordance with the participation agreements.

Generally, revenues are fixed at a level to recover all operating and debt service costs over the commercial life of the property (see Note 6).

Debt Ex ense Debt expense includes interest on debt and the amortization of bond discounts, debt issuance expense and loss on refunding costs.

Arbitra e Rebate A rebate payable to the Internal Revenue Service (IRS) results from the investment of the proceeds from the Multiple Project Revenue Bond offering in a taxable financial instrument that yields a higher rate of interest income than the cost of the associated funds.

The excess of interest income over costs is payable to the IRS within five years of the date of the bond offering and each consecutive five years thereafter.

The Authority made its first rebate payment of $3.8 million during fiscal year 1995.

The next rebate payment to the IRS is due in fiscal year 2000.

Reclassi fications Certain reclassifications have been made in the fiscal year 1995 financial statements to conform to the fiscal year 1996 presentation.

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NOTE 2:

(Continued)

Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period.

Actual results could differ from those estimates.

NOTE 3 - SPECIAL FUNDS:

The Bond Indentures for the six projects and the Multiple Project Fund require the following special funds to be established to account for the Authority's receipts and disbursements.

The moneys and investments held in these funds are restricted in use to the purposes stipulated in the Bond Indentures.

A summary of these funds follows:

I'und

~Pur ose Construction To disburse funds for the acquisition and construction of the project.

Debt Service Revenue Operating Reserve and Contingency To pay interest and principal related to the Revenue Bonds.

To initially receive all revenues and disburse them to other funds.

To pay operating expenses.

To pay capital improvements and make up deficiencies in other funds.

General Reserve Advance Payments Proceeds Account To make up any deficiencies in other funds.

To disburse funds for the cost of acquisition of capacity.

To initially receive the proceeds of the sale of the Multiple Project Revenue Bonds.

Earnings Account To receive investment earnings on the Multiple Project Revenue Bonds.

Revolving Fund Decommissioning Fund To pay the Authority's operating expenses.

To accumulate funds related to the future decommissioning of PVNGS.

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NOTE 3:

(Continued)

Issue Fund To initially receive pledged revenues associated with the applicable subordinated refunding series'ndenture of Trust and pay the related interest and principal.

Escrow account - Subordinate Refunding Crossover Series To initially receive pledged revenues associated with Component 3 of the 1993 Subordinate Refunding Crossover Series'ndenture of Trust and pay the related interest and principal.

Acquisition Account To disburse funds for the acquisition and construction of the Mead-Phoenix, Mead-Adelanto and San Juan projects.

All of the funds listed above, except for the Revolving Fund, are held by the respective trustees.

Palo Verde Pro'ect The balances of the funds required by the Bond Indenture are as follows, in thousands:

une 30 1996 Amortized Fair Cost Value 1995 Amortized Fair Cost Value Debt Service Fund-Debt Service Account Debt Service Reserve Account Revenue Fund Operating Fund Reserve and Contingency Fund Decommissioning Trust Fund Issue Fund Revolving Fund 8 51,386 74,420 5

20,130 25,924 34,131 13,026 45 8 51,394 74,160 5

20,134 26,107 33,740 13,026 45 8 52,457 81,497 1

31,141 16,776 24,503 12,486 45 S

52,467 81,077 1

31,026 17,075 24,503 12,486 45 Contractual maturities:

Within one year After one year through five years After five years through ten years After ten years

~2~~7 ~2~

~21 ~Q ~211~

3 69,781 8 69,391 136,279 136,148 3,187 3,252 9 820 9 820

~2]

067

$218~11 NOTE 3:

(Continued)

Southern Transmission S stem Pro'ect The balances in the special funds required by the Bond Indenture are as follows, in thousands:

une 30 1996 Amortized Cost Fair Value 1995 Amortized Cost Fair Value Construction fund - Initial Facilities Account Debt Service Fund-Debt Service Account Debt Service Reserve Account Operating Fund General Reserve Fund Issue Fund Escrow Account - Subordinate Refunding Crossover Series Revolving Fund 21,921 86,220 6,015 4,194 77,024 21,896 86,189 6,007 4,194 76,794 31,480 66,672 5,987 9,533 77,768 31,491 66,857 5,987 9,542 77,579 346,474 343,903 355,101 353,188 15 15 15 15 f~42 Z %~2

~4~77 S

235 8

235 8

223 8

223 Contractual maturities:

Within one year After one year through five years After five years through ten years After ten years 8102,008 8101,975 80,852 80,803 36,972 34,189 322 266 322 266

~42 098

~63')~2. 3 In addition, at June 30, 1996 and 1995, the Authority had non-interest bearing advances outstanding to IPA of 819,550,000.

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NOTE 3:

(Continued)

Ifoover U ratin Pro ect The balances in the special funds required by the Bond Indenture are as follows, in thousands:

1996 une 30 1995 Amortized I'air Cost Value Amortized Cost Fair Value Advance Payments Fund Operating-Working Capital Fund Debt Service Fund-Debt Service Account Debt Service Reserve Account General Reserve Fund Revolving Fund 3

804 2,390 2,390 3,122 3,121 5,318 5,316 1,440 3,078 2,911 13 1,429 3,068 2,914 13 8

2,437 8

2,437 804 563 563 5

1 1~4 ]~ll

+1

~1~442

~1(~424 Contractual maturities:

Within one year After one year through five years 8

2,003 8

2,003 9 681 9 628

)~ll 34 ~1~1+1 In addition, at June 30, 1996 and 1995, the Authority had advances to USBR of 810,119,000 and 811,903,000, respectively.

Mead-Phoenix Pro'ect The balances in the special funds required by the Bond Indenture are as follows, in thousands:

une 30 1996 Amortized Cost Fair Value 1995 Amortized Cost Fair Value Acquisition Account Debt Service Fund-Debt Service Account Debt Service Reserve Account Issue Fund Revenue Fund Operating Fund Revolving Fund 4,976 4,967 6,133 6,133 4,444 6,132 4,924 4,444 6,132 4,873 64 239 6

64 239 6

8 12,571 8 12,571 8 19,830 8

19,830

~23 982 M2'h~R

NOTE 3:

(Continued)

Contractual maturities:

Within one year After one year through five years After ten years 2,389 8

2,389 1,242 1,233 20 858 20 358 5 2'>MR ~22K Mead-Adelanto Pro'ect The balances in the special funds required by the Bond Indenture are as follows, in thousands:

1996 une 30 1995 Amortized Fair Cost Value Amortized Cost Fair Value Acquisition Account Debt Service Fund-Debt Service Account Debt Service Reserve Account Issue Fund Revenue Fund Operating Fund Revolving Fund 15,194 15,166 16,865 16,865 12,353 17,040 16,517 12,353 17,040 16,346 71 264 6

71 264 6

8 36,979 8 36,979 8 37,745 8

37,745 Contractual maturities:

Within one year After one year through five years After ten years 8

6,794 8

6,789 4,161 4,138 58 424 58 424 I

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NOTE 3:

(Continued)

Multi le Pro'ect Fund The balances in the special funds required by the Bond Indenture are as follows, in thousands:

1996 une 30 1995 Amortized Fair Cost Value Amortized Fair Cost Value Proceeds Account Earnings Account 8256,830 8256,830 8256,830 8 256,830 3 278 3 278 1 384 1 384 Contractual maturities:

Within one year After ten years

~20~10

[~2(~1$

~2~214

~2~214 9,220 8

9,220 250 888 250 888

~2() 10/f $2{~01 The balances in the special funds required by the Bond Indenture are as follows, in thousands:

1996 une 30 1995 Amortized Fair Cost Value Amortized Cost Fair Value Operating Reserve Operating Revenue Fund Acquisition Account Debt Service Fund-Debt Service Account Debt Service Reserve Account Reserve and Contingency Revolving 8

1,238 8

1,238 8

1,618 8

1,618 7

7 2

2 527 527 112 112 8,607 8,597 6,017 6,017 18,031 18,031 18,026 18,026 13,377 13,383 11,224 11,252 15 15 JL44~77 g 41~73

~7~4

~~~7L422 Contractual maturities:

Within one year After one year through five years After ten years 5

7,613 8

7,613 16,149 16,145 18 025 18 025 fj 41~77 j~4~7$

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NOTE 3:

(Continued Pro'ect Investment Sales There were no proceeds from sales of investments during fiscal 1996 or 1995.

NOTE 4 - LONG-TERM DEBT:

Reference is made below to the Combined Schedule of Long-term Debt at June 30, 1996 for details related to all of the Authority's outstanding bonds.

Palo Verde Pro'ect To finance the purchase and construction of the Authority's share of the Palo Verde Project, the Authority issued Power Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of July 1, 1981 (Senior Indenture), as amended and supplemented.

The Authority also has issued and has outstanding Power Project Subordinate Refunding Series Bonds issued under an Indenture of Trust dated as of January 1, 1993 (Subordinate Indenture).

The Subordinate Refunding Bonds were issued to advance refund certain bonds previously issued under the Senior Indenture.

The bond indenturcs provide that the Revenue Bonds and Subordinate Refunding Bonds shall be special, limited obligations of the Authority payable solely from and secured solely by (1) proceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to the Palo Verde Project (see Note 6) and interest on all moneys or securities (other than in the Construction Fund) held pursuant to the Bond Indenture and (3) all funds established by the Bond Indenture.

At the option of the Authority, all outstanding Power Project Revenue Bonds and Subordinate Refunding Term Bonds are subject to redemption prior to maturity, except for the 1996 Subordinate Refunding Series A which is not redeemable.

The Bond Indenture requires mandatory 'sinking fund installments to be made beginning in fiscal year 2003 (1986 Series A Bonds and 1987 Series A Bonds), 2005 (1989 Series A Bonds), 2010 (1993 Series A Bonds), and 2008 (1996 Subordinate Refunding Series B).

Scheduled principal maturities for the Palo Verde Project during the five fiscal years following June 30, 1996 are

$25,690,000 in 1997, 822,220,000 in 1998, $23,580,000 in 1999, 825,145,000 in 2000, and 512,860,000 in 2001.

The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.8% and 6.0%, respectively.

NOTE 4:

(Continued)

Southern Transmission S stem Pro'ect To finance payments-in-aid of construction to IPA for construction of the STS, the Authority issued Transmission Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of May 1, 1983 (Senior Indenture), as amended and supplemented.

The Authority also has issued and has outstanding Transmission Project Revenue Bonds 1991 and 1992 Subordinate Refunding Series issued under Indentures of Trust dated as of March 1, 1991 and June 1, 1992, respectively.

The 1991 and 1992 subordinated bonds were issued to advance refund certain bonds previously issued under the Senior Indenture.

The bond indentures provide that the Revenue Bonds and the Subordinate Refunding Series Bonds shall be special, limited obligations of the Authority payable solely from and secured solely by (1) proceeds from the sale of bonds, (2) all revenues, incomes, rents and receipts attributable to STS (see Note 6) and interest on all moneys or securities (other than in the Construction Fund) held pursuant to the Bond Indenture and (3) all funds established by the Bond Indenture.

All outstanding Transmission Project Revenue and Refunding Bonds, at the option of the Authority, are subject to redemption prior to maturity.

The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2003 (for the 1986 Series A Bonds), 2002 (1986 Series B Bonds) and 2007 (1988 Series A Bonds).

Scheduled principal maturities for STS during the five fiscal years following June 30, 1996 are $10,845,000 in 1997, 821,565,000 in 1998, 822,790,000 in 1999, 810,200,000 in 2000, and

$10,115,000 in 2001.

The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 8.3%.

I.loover U ratin Pro ect To finance advance payments to USBR for application to the costs of the Hoover Uprating Project, the Authority issued Hydroelectric Power Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of March 1, 1986 (Bond Indenture).

The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from and secured solely by (1) the proceeds from the sale of the bonds, (2) all revenues from sales of energy to participants (see Note 6), (3) interest or other receipts derived from any moneys or securities held pursuant to the Bond Indenture and (4) all funds established by the Bond Indenture (except for the Interim Advance Payments Account in the Advance Payments Fund).

At the option of the Authority, all outstanding Hydroelectric Power Project Revenue Bonds are subject to redemption prior to maturity.

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NOTE 4:

(Continued)

The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2007 for the 1991 Series A Bonds maturing on October 1, 2010 and fiscal year 2011 for the 1991 Series A Bonds maturing on October 1, 2017.

Scheduled principal maturities for the Hoover Uprating Project during the five fiscal years following June 30, 1996 are 81,085,000 in 1997, 81,130,000 in 1998, 81,230,000 in 1999, $1,285,000 in 2000, and 81,400,000 in 2001.

The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.8% and 6.1%,

respectively.

During fiscal 1995, the Authority repurchased 8340,000 of outstanding Hydroelectric Power Project Revenue Bonds with excess funds in the Advance Payments I und.

Multi le Pro'ect Fund To finance costs of construction and acquisition of ownership interests or capacity rights in one or more projects expected to be undertaken within five years after issuance, the Authority issued Multiple Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of August 1, 1989 (Bond Indenture), as amended and supplemented.

The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) with respect to each authorized project, the revenues of such authorized project, and (3) all funds established by the Bond Indenture.

In October 1992, 8103,640,000 and 8285,010,000 of the Multiple Project Revenue Bonds were transferred to the Mead-Phoenix Project and the Mead-Adelanto Project, respectively, to finance the estimated costs of acquisition and construction of the projects.

A total of $153,500,000 of the outstanding Multiple Project Revenue Bonds are not subject to redemption prior to maturity.

At the option of the Authority, the balance of the outstanding bonds are subject to redemption prior to maturity.

The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2006 for the 1989 Series Bonds.

The first scheduled principal maturity for the Multiple Project Revenue Bonds is 88,645,000 in fiscal year 2000.

The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 6.8%.

Mead-Phoenix Pro'ect To finance the Authority's ownership interest in the estimated cost of the project, 8103,640,000 of the Multiple Project Revenue Bonds were transferred to the Mead-Phoenix Project in October 1992.

In March 1994, the Authority issued and has outstanding 851,835,000 of Mead-Phoenix Revenue Bonds under an Indenture of Trust dated as of January 1, 1994 (Bond Indenture).

The proceeds from the Revenue Bonds, together with drawdowns from the Debt Service Fund and Project I

I

NOTE 4:

(Continued)

Acquisition Fund, werc used to advance refund 864,840,000 of the Multiple Project Revenue Bonds previously transferred to the Mead-Phoenix Project.

The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) all

revenues, incomes, rents and receipts attributable to Mead-Phoenix (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.

At the option of the Authority, all outstanding Mead-Phoenix Revenue Bonds are subject to redemption prior to maturity.

The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2018 for the 1994 Series Bonds.

The first scheduled principal maturity for the Mead-Phoenix Revenue Bonds is $1,295,000 in fiscal year 2000.

The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 6.0%.

Mead-Adelanto Pro'ect To finance the Authority's ownership interest in the estimated cost of the project, S285,010,000 of the Multiple Project Revenue Bonds were transferred to the Mead-Adelanto Project in October 1992.

In March 1994, the Authority issued and has outstanding 8173,955,000 of Mead-Adelanto Revenue Bonds under an Indenture of Trust dated as of January 1, 1994 (Bond Indenture).

The proceeds of the Revenue Bonds, together with drawdowns from the Debt Service Fund and Project Acquisition Fund, were used to advance refund 8178,310,000 of the Multiple Project Revenue Bonds previously transferred to the Mead-Adelanto Project.

The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, 1) proceeds from the sale of bonds, (2) all

revenues, incomes, rents and receipts attributable to Mead-Adelanto (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.

At the option of the Authority, all outstanding Mead-Adelanto Revenue Bonds are subject to redemption prior to maturity.

The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2018 for the 1995 Series Bonds, The first scheduled principal maturity for the Mead-Adelanto Revenue Bonds is 83,560,000 in fiscal year 2000.

The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.9% and 6.0%, respectively.

S~P To finance the costs of acquisition of an ownership interest in Unit 3 of the SJGS, the Authority issued San Juan Project Revenue Bonds pursuant to the Authority's Indenture of Trust dated as of January 1, 1993 (Bond Indenture).

NOTE 4:

(Continued)

The Bond Indenture provides that the Revenue Bonds shall be special, limited obligations of the Authority payable solely from, and secured solely by, (1) proceeds from the sale of bonds, (2) all

revenues, incomes, rents and receipts attributable to San Juan (see Note 6) and interest on all moneys or securities and (3) all funds established by the Bond Indenture.

At the option of the Authority, all outstanding San Juan Project Revenue Bonds are subject to redemption prior to maturity.

The Bond Indenture requires mandatory sinking fund installments to be made beginning in fiscal year 2012 for the 1993 Series A Bonds.

The scheduled principal maturities for the San Juan Project Revenue Bonds during the five fiscal years following June 30, 1996 are 86,035,000 in 1998, 86,275,000 in 1999, 86,540,000 in 2000 and 86,825,000 in 2001.

The average interest rate on outstanding debt during fiscal year 1996 and 1995 was 5.3%.

Refundin Bonds In April 1996, the Authority issued 8152,905,000 of Palo Verde 1996 Subordinate Refunding Series A Bonds to refund 8163,355,000 of previously issued Palo Verde 1987 Refunding Series A Bonds and issued 858,870,000 of Palo Verde 1996 Subordinate Refunding Series B Bonds to refund 818,555,000 and 840,315,000 of previously issued Palo Verde 1986 Refunding Series B and 1987 Refunding Series A Bonds, respectively.

The refunding is expected to reduce total debt service payments over the next 13 years by approximately 850,967,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings of approximately 829,537,000.

In March 1994, the Authority issued 851,835,000 of Mead-Phoenix Project Revenue Bonds and 8173,955,000 of Mead-Adelanto Project Revenue Bonds to refund 8243,150,000 of previously issued Multiple Project Revenue Bonds which were transferred to the Mead-Phoenix and Mead-Adelanto projects during fiscal year 1993. The partial refunding of the original issue within five years of its issuance triggered a recalculation of the arbitrage yield. The recalculation resulted in a higher arbitrage yield which reduced the rebate liability of the Authority. At June 30, 1996, cumulative savings due to the rebate calculation amounted to 86,401,924.

This amount was allocated 81,707,180 and 84,694,744 to the Mead-Phoenix and Mead-Adelanto Projects, respectively.

In July 1992, the Authority issued 8475,000,000 of Southern Transmission Project Revenue Bonds to refund 8385,385,000 of previously issued bonds.

Principal and interest with respect to the 1992 bonds are allocated into four separate components.

Each of components 1, 2 and 3 is secured by, and payable from, investments in its escrow fund until scheduled crossover dates.

Component 4 proceeds of 814,100,000 were used to advance refund approximately 89,000,000 of bonds in fiscal year 1993.

On the Component 1 Crossover date (January 1, 1994), Component 1 proceeds of 813,959,000 were used in fiscal 1994 to advance refund 813,455,000 of previously issued bonds.

On the Component 2 Crossover date (January 1, 1995), Component 2 proceeds of 85,519,000 were used in fiscal 1995 to advance refund 85,335,000 of previously issued bonds.

Proceeds from Component 3 of 8343,921,000 werc placed in an irrevocable trust and will be used to redeem 8313,050,000 of bonds currently included within long-term debt at scheduled call dates.

The I

NOTE 4: (Continued) combined refunding is expected to reduce total debt service payments over the next 25 years by approximately 852,585,000 and is expected to result in an overall net present value savings of approximately 825,060,000.

Until the bonds to be refunded by Component 3 are called, interest on the bonds is payable from interest earned on investments with a financial institution under a specific investment agreement purchased out of the proceeds of the sales and held in bank escrow accounts.

After the monies in the escrow accounts are applied to redeem the bonds to be called, primarily through fiscal 1997, interest on the bonds will be payable from revenues.

The trust account assets (8343,898,000 in escrow accounts and 82,410,000 in unamortized debt expense at June 30, 1996) and liabilities (8347,388,000, net of bond discounts, at June 30, 1996) for Component 3 are included in the Authority's financial statements.

The revenue bonds to be refunded are also included in the financial statements until the scheduled call date, at which time the refunded bonds and related trust account assets will be removed from the balance sheet and the cost of refunding the debt will be included in unamortized debt expenses.

In January 1992, $70,680,000 of Palo Verde Special Obligation Crossover Series Bonds were issued, the proceeds of which were placed in an irrevocable trust and will be used to redeem 869,125,000 of bonds currently included within long term debt at scheduled call dates.

Until the bonds to be refunded by the Palo Verde Special Obligation Crossover Series Bonds are called, interest on the Palo Verde Special Obligation Crossover Series Bonds is payable from interest earned on securities of the United States Government purchased out of the proceeds of the sales and held in bank escrow accounts.

After the monies in the escrow accounts are applied to redeem the bonds to be called, primarily through 1996, interest on the Palo Verde Special Obligation Crossover Series Bonds will be payable from revenues.

The trust account assets and the liability for the Palo Verde Special Obligation Crossover Series Bonds are not included in the Authority's financial statements.

At June 30, 1996 and 1995, $63,849,000 and $70,959,000, respectively, of these trust assets have been offset against the Palo Verde Special Obligation Crossover Series Bonds.

On July 1, 1995, the crossover date for the Palo Verde Special Obligation Bonds Series A, trust assets in escrow of 87,131,000 were used to advance refund 87,125,000 of previously issued bonds.

At June 30, 1996 and 1995, the aggregate amount of debt in all projects considered to be defeased was $3,535,075,000 and 83,305,725,000, respectively.

Interest Rate Swa In fiscal year 1991, the Authority entered into an Interest Rate Swap agreement with a third party for the purpose of hedging against interest rate fluctuations arising from the issuance of the Transmission Project Revenue Bonds, 1991 Subordinate Refunding Series as variable rate obligations.

The notional amount of the Swap Agreement is equal to the par value of the bond ($291,700,000 and

$292,000,000 at June 30, 1996 and 1995, respectively).

The Swap Agreement provides for the Authority to make payments to the third party on a fixed rate basis at 6.38%, and for the third party to make reciprocal payments based on a variable rate basis (3.1% and 3.9% at June 30, 1996 and 1995, respectively).

The bonds mature in 2019.

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COMBiNED SCHEDULE OF LONG-TERhf DEBT (ln thousands)

~o Principal:

Palo Verde Project Revenue and Refunding Bonds 1985A 1985B 1986A 1986B 1987A 1989A 1992A 1992C 1993Sub 1993A 1996A 1996B Date 05/22/85 07/02/85 03/13/86 12/16/86 02/11/87 02/15/89 01/01/92 01/01/92 03/01/93 03/01/93 02/13/96 02/29/96 Effcctivc 9.7%

9.1%

8.2%

7.2%

6.9%

Z.2%

6.0%

6.0%

5.5%

5.5%

4.4%

4.4%

Maturity on

tu33, 1996 to 1999 1996 to 2000 1996 to 2006 1996 to 2017 1996 to 2017 1996 to 2015 1996 to 2010 1996 to 2010 1996 to 2017 1996 to 2017 1996 to 2017 1996 to 201Z 8

1,070 5,610 71,220 96,450 43,720 287,705 7465 15,620 98,200 270,035 152,905 1,108,670 Southern Transmission System Project Revenue and Refunding Bonds 1986A 1986B 1988A 1991A 1992 Comp 1, 2,4 1992 Comp 3 1993A 03/18/86 04/29/86 11/22/88 4/17/91 7/20/92 7/20/92 7/01/93 8.0%

7.5%

7.2%

6.4%

6.1%

6.1%

5.4%

1996 to 2021 1996 to 2023 1996 to 2015 2019 1996 to 2021 1996 to 2021 1996 to 2023 107,300 401,570 154,085 291,700 40,639 431,766 Hoover Uprating Project Revenue and Refunding Bonds 1986A 1991 08/13/86 08/01/91 8.1%

6.2%

1996 to 2017 1996 to 2017

~5925 4,160 multiple Project Revenue Bonds Mead-Phoenix Project Mead-Adelanto Project hfultiple Project 1989 1989 1989 01/04/90 01/0$/90 01/0$/90 7.1%

7.1%

7.1%

1999 to 2020 1999 to 2020 1999 to 2020

~5655 38,800 106,ZOO

~259 99 Mead-Phoenix Project Revenue Bonds hfead.Addanto Project Revenue Bonds San Juan Project Revenue Bonds Total principal amount Unamortized bond discount:

Palo Verde Project Southern Transmission System Project Hoover Uprating Project Mead-Phoenix Project hfead-Adelanto Project hfultiple Project Fund San Juan Project 1994A 1994A 1993 03/01/94 03/01/94 06/01/93 5.3%

5.3%

5.6%

2006 to 2015 2006 to 2015 1997 to 2020 5

835 7

955 237 37 (101,823)

(159,935)

(3+89)

(4,218)

(12,650)

(16813)

~L92$

Total unamortized bond discount Long.tenn debt due within one year Total long-term debt, net (including Subordinate Refunding Crossover Series)

Note - bonds which have been refunded arc excluded from this schedule

~3974 7

~4~5

~32 3933

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NOTE 5 - DISCLOSURES ABOUT FAIR VALUE 01 FINANCIALINSTRUMENTS:

The following methods and assumptions were used to estimate the fair value of each class of financial instruments for which it is practicable to estimate that value:

Cash and cash e uivalents The carrying value approximates fair value because of the short maturity of those instruments.

Investments Decommissionin fund Escrow account - Subordinate Refundin Crossover Series Crossover escrow accounts The fair values of investments are estimated based on quoted market prices for the same or similar investments.

Lon -term deb S ecial Obli ation Crossover Series Bonds Subordinate Refundin Crossover Series The fair value of the Authority's debt is estimated based on the quoted market prices for the same or similar issues or on the current average rates offered to the Authority for debt of approximately the same remaining maturities, net of the effect of a related interest rate swap agreement.

The fair values of the Authority's financial instruments are as follows (in thousands):

1996 Amortized Cost Fair Value une 30 Amortized Cost 1995 Fair Value Assets:

Cash and cash equivalents Escrow account - Subordinate Refunding Crossover Series Decommissioning fund Investments 346,468 33,865 597,831 343,898 33,474 597,427 345,782 24,503 682,916 343,921 24,503 682,442 173,798 8

173,798 8 120,610 8

120,610 Liabilities:

Debt Subordinate Refunding Crossover Series 2,910,200 3,210,790 2,933,261 3,198,500 347,388 385,516 347,782 377,700 Off Balance Sheet Financial Instruments:

Special Obligation Crossover Series Bonds 63,415 67,739 70,680 Crossover escrow accounts 63,849 63,849 70,959 75,800 70,959 I

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NOTE 6 - POWER SALES AND TRANSMISSION SERVICE CONTRACTS:

The Authority has power sales contracts with ten participants of the Palo Verde Project (see Note 1).

Under the terms of the contracts, the participants are entitled to popover output from the PVNGS and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on Power Project Revenue Bonds and other debt.

The contracts expire in 2030 and, as long as any Power Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.

The Authority has transmission service contracts with six participants of the Southern Transmission System Project (see Note 1).

Under the terms of the contracts, the participants are entitled to transmission service utilizing the Southern Transmission System Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on Transmission Project Revenue Bonds and other debt.

The contracts expire in 2027 and, as long as any Transmission Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.

In March 1986, the Authority entered into power sales contracts with six participants of the Hoover Uprating Project (see Note 1).

Under the terms of the contracts, the participants are entitled to capacity and associated firm energy of the Hoover Uprating Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service whether or not the Hoover Uprating Project or any part thereof has been completed, is operating or is operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part.

The contracts expire in 2018, and as long as any Hydroelectric Power Project Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.

In August 1992, the Authority entered into transmission service contracts with nine participants of the Mead-Phoenix Project (see Note 1).

Under the terms of the contracts, the participants are entitled to transmission service utilizing the Mead-Phoenix Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on the Multiple Project and Mead-Phoenix Revenue Bonds and other debt, whether or not the Mead-Phoenix Project or any part thereof has been completed, is operating and operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part.

The contracts expire in 2030 and, as long as any Multiple Project and Mead-Phoenix Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.

In August 1992, the Authority entered into transmission service contracts with nine participants of the Mead-Adelanto Project (see Note 1).

Under the terms of the contracts, the participants are entitled to transmission service utilizing the Mead-Adelanto Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on the Multiple Project and Mead-Adelanto Revenue Bonds and other debt, whether or not the Mead-Adelanto Project or any part thereof has been completed, is operating and operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part.

The contracts expire k%

l

~

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NOTE 6:

(Continued) in 2030 and, as long as any Multiple Project and Mead-Adelanto Revenue Bonds are outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bond holders.

In January 1993, the Authority entered into power sales contracts with five participants of Unit 3 of the San Juan Project (see Note 1).

Under the terms of the contracts, the participants are entitled to their proportionate share of the power output of the San Juan Project and are obligated to make payments on a "take or pay" basis for their proportionate share of operating and maintenance expenses and debt service on the San Juan Revenue Bonds, whether or not Unit 3 of the San Juan Project or any part thereof is operating or operable, or its service is suspended, interfered with, reduced or curtailed or terminated in whole or in part.

The contracts expire in 2030 and, as long as any San Juan Revenue Bonds are

'outstanding, cannot be terminated or amended in any manner which will impair or adversely affect the rights of the bondholders.

NOTE 7 - COSTS RECOVERABLE I ROM I'UTURE BILLINGSTO PARTICIPANTS:

Billings to participants are designed to recover "costs" as defined by the power sales and transmission service agreements.

The billings are structured to systematically provide for debt service requirements, operating funds and reserves in accordance with these agreements.

Those expenses, according to generally accepted accounting principles (GAAP), which are not included as "costs" are deferred to such periods when it is intended that they be recovered through billings for the repayment of principal on related debt.

Costs recoverable from future billings to participants are comprised of the following:

Balance June 30, 1995 Fiscal 1996

~Activit Balance June 30, 1996 GAAP items not included in billings to participants:

Depreciation of plant Amortization of bond discount, debt issue costs, and cost of refunding Nuclear fuel amortization Decommissioning expense Interest expense 206,470 18,650 75,233 23,165 37,745 244,215 898 19,548 7,610 82,843 22,798 45,963 8348,328 8 49,323 N97,651 Bond requirements included in billings to participants:

Operations and maintenance, net of investment income Costs of acquisition of capacity - STS Reduction in debt service billings due to transfer of excess funds Principal repayments Other (67,253)

(18,350) 78,658 (222,130)

~31 740 (21,062)

(88,315)

(18,350)

(11,099) 67,559 (39,559)

(261,689)

~3858

~85 598

~41~1@f~42~7

]~~27 I

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NOTE 8 - COMMITMENTSAND CONTINGENCIES:

On August 31, 1996, the California State Legislature approved Bill AB 1890 (Bill) which provides for broad deregulation of the power generation industry in California.

The Bill, which is pending approval by the Governor, requires the participation of the state's three investor-owned utilities.

Consumer-owned utilities can participate on a voluntary basis but must hold public hearings as part of its decision making process.

The Bill, which was supported by the Authority, authorizes the collection of a transition charge for generation when a consumer-owned utility opens its service area to competition and participates in the independent transmission system established by the legislation.

The Bill also mandates the collection of a public benefit charge from all electric utility customers in the state.

Although these funds (currently estimated at 2.5% of gross revenues) must be spent on renewable resources, conservation, research and development, or low income rate subsidies, the governing authority of each consumer-owned utilitywill control actual expenditures.

As a participant in the PVNGS, the Authority could be subject to assessment of retroactive insurance premium adjustments in the event of a nuclear incident at the PVNGS or at any other licensed reactor in the United States.

The Authority is involved in various legal actions.

In the opinion of management, the outcome of such litigation or claims will not have a material effect on the financial position of the Authority or the respective separate projects.

NOTE 9:

SUBSE UENT EVENTS:

On July 1, 1996, the crossover date for t)ie Palo Verde Special Obligation Bonds Series B, trust assets held in escrow of 863,415,000 were used to advance refund 862,000,000 of previously issued bonds.

In August 1996, the Authority issued $89,570,000 of Palo Verde 1996 Subordinate Refunding Series C

bonds to refund $95,015,000 of 1986 Refunding Series B bonds.

The refunding is expected to reduce total debt service payments over the next 20 years by approximately 824,713,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings of approximately $16,955,000.

In September 1996, the Authority issued 842,245,000 of Transmission Project Revenue Bonds, 1996 Subordinate Refunding Series A and 8121,065,000 of Transmission Project Revenue Bonds, 1996 Subordinate Refunding Series B to refund 868,720,000 and 8127,100,000 of the STS 1986 Refunding Series A and B, respectively.

The refunding is expected to reduce total debt service payments over the next 10 years by approximately $6,029,000 (the difference between the debt service payments on the old and new debt) and is expected to result in a net present value savings of approximately N,372,000.

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Palo Verde Pro'ect SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SUPPLEMFNTAL FINANCIALINFORitfATION INDF.X Supplemental Balance Sheet at Junc 30, 1996 and 1995 Supplemental Statement of Operations for thc Years Ended June 30, 1996 and 1995 Supplcmcntal Statement of Cash Flows for thc Years Ended Junc 30, 1996 and 1995 Supplemental Schcdulc of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended Junc 30, 1996 Southern Transmission S stem Pro ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statcmcnt of Operations for the Years Ended June 30, 1996 and 1995 Supplcmcntal Statcmcnt of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by thc Bond Indcnturc for thc Year Ended June 30, 1996 Hoover U ratin Pro'ect Supplcmcntal Balance Sheet at Junc 30, 1996 and 1995 Supplemental Statement of Operations for the Years Ended Junc 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for thc Year Ended June 30, 1996 hfead-Phoenix Pro'ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Operations for the Three Months Ended June 30, 1996 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schcdulc of Receipts and Disbursements in Funds Rcquircd by the Bond indenture for thc Year Ended Junc 30, 1996 Mead-Adelanto Pie'ect Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statcmcnt of Operations for the Three Months Ended June 30, 1996 Supplcmcntal Statcmcnt of Cash Flows for the Years Ended Junc 30, 1996 and 1995 Supplcmcntal Schedule of Receipts and Disbursements in Funds Required by the Bond Indenture for the Year Ended June 30, 1996 Multi lc Pro'cct Fund Supplemental Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Cash Flows for the Years Ended June 30, 1996 and 1995 Supplemental Schedule of Receipts and Disbursements in Funds Rcquircd by the Bond Indenture for the Year Ended June 30, 1996 San uan Pro'ect Supplcmcntal Balance Sheet at June 30, 1996 and 1995 Supplemental Statement of Operations for the Years Ended June 30, 1996 meed 1995 Supplemental Statement of Cash Flows for thc Years Ended Junc 30, 1996 and 1995 Supplemental Schedule of Receipts and Disburscmcnts in Funds Required by the Bond Indenture for thc Year Ended June 30, 1996 5

SOUTIIERN CALIFORNIAPVBLIC POWER AUTIIORITY PALO VERDE PROJECT SUPPI.F.ltIF.NTAI. BAIANCESHF.FT (In thousands) une 30 1995 Vtilityplant:

Production Transmission General 613,608 14,146 2 569 611,771 14,146 2 674 Less - Accumulated depreciation Construction work in progress Nuclear fuel, at amortized cost Net utility plant 630,323 250 021 380,302 9,503 13 225 403 030 628,491 219 881 408,610 9,683 12716 431 009 Special funds:

Availablc for sale at fair value:

Decommissioning fund Invcstmcnts Interest receivable Cash and cash cquivalcnts 33,474 115,746 1,512 67 879 24,503 143,600 1,223 49 354 218 61 218 680 Accounts rcceivablc 738 912 Materials and supplies Costs recoverable front future billings to participants Unrcalizcd loss on invcstmcnts in funds available for sale Vnamortizcd debt expenses, less accumulated antortization of $65,795 and $71,525 Total assets 9,240 204,945 456 204 093 f~~73 9,618 197,515 226 209 740

~067 700 I.IABII,ITIFS Long-term debt 5

9S1 155

~996 390 Current liabilities:

Long-term debt duc within onc year Accrued interest Accounts payable and accrued cxpcnscs 25,690 24,535 10 333 23,855 30,685 16 770 Total current liabilities 60 558 71 310 Commitments and contingencies Total liabilities

~0~7

~067 700 See notes to financial statements.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS (In thousands)

Year Ended une 30 1996 1995 Operating revenue:

Sales of electric energy

~185 464

~129 180 Operating expenses:

Nuclear fuel Other operations Maintenance Depreciation Decommissioning Total operating expenses Operating income Investment income Income before debt expense 7,949 25,815 6,317 18,425 12 497 71.003 64,461 10 886 75,347 8,150 25,307 7,825 19,145 15 401 73.828 55,352 9.968 65,320 Debt expense Costs recoverable from future billings to participants 82 777 77 976 See notes to financial statements.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMFNTAL STATEMENT OF CASH FLOWS (In thousands)

Year Fndcd unc 30 1996 1995 Cash flows from operating activities:

Costs recoverable from future billings to participants Adjustments to arrive at net cash provided by (used for) operating activitics-Depreciation Decommissioning Amortization of nuclear fuel Amortization of debt costs Changes in assets and liabilities:

Decommissioning fund Interest receivable Accounts receivable Materials and supplies Other assets Accrued interest Accounts payable and accrued expenses 18,425 12,497 7,949 24,428 19,145 13,401 8,150 16,607 (8,971)

(289) 174 378 55 (6,150)

~6437 (1,297) 127 131 729 (2)

(719) 3 241 (S

7,430)

(S 12,656)

Net cash provided by operating activities 34 629 46 857 Cash flows from investing activities:

Payments for construction of facility Purchases of investmcnts Proceeds from sale/maturity of invcstmcnts (10,892)

(9,569)

(154,685)

(97,108) 182 309 68 891 Net cash provided by (used for) investing activities 16 732

~37 786 Cash flows from capital and related financing activities:

Payment of principal on long-term debt Payment of bond issue costs Payment for defcasancc of revenue bonds Proceeds from issuance of refunding bonds (231855)

(4,832)

(233,632) 229 483 (22,425)

Nct cash used for capital and rclatcd financing activities (32,836)

(22,425)

Nct increase (decrease) in cash and cash cquivalcnts Cash and cash cquivalcnts at beginning of period 18,525 49 354 (13,354) 62 708 Cash and cash equivalents at end of year

~67 87

~9~35 Supplemental disclosure of cash flow infortnation:

Cash paid during the year for interest (nct of amount capitalized)

~644 9

~62089 Scc notes to financial statements.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY PALO VERDE PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPIS AND DISBURSEMEKIS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDFD UNF. 30 1996 (In thousands)

Debt Service Fund Revenue Fund Operating Fund Reserve &

Contingency Fund Decommissioning Issue Funds Fund I & II Total Balance at June 30, 1995 132 133 8

30948 8 16574 8

12482 8 24490 8 216627 Additions:

Investment earnings Distribution of investment earnings Discount on investment purchases Revenue from power sales Distribution of revenues Transfers to escrow for rcfundings Transfer from escrow for principal and interest payments Total 4,409 (5,734) 1,971 49 81,922 (10,413) 379 634 451 838 31 8,604 3

129,180 (138,843) 78 951 834 (1,213) 513 37 39,603 (93) 11 067 28 614 1,100 (1,000) 336 6

3,989 (2,886) 10 581 12 126 616 (657) 41 5,325 4,046 749 423 8,004 7,739 3,287 129,272 (9,268) 380 099 9 371 9 176 511 129 Deductions:

Construction expenditures Operating expenditures Fuel costs Bond issue costs Payment of principal Interest paid Premium and interest paid on investments Payment of principal and interest on escrow bonds 23,855 55,130 202 380 099 31,041 8,45?

115 3,060 58 3,173 5,663 131 3,060 31,046 8,457 3,173 23,855 60,793 506 380 099 Total 459 286 39 613 3 118 8 836 136 510 989 Balance at June 30, 1996

~124 684 S

4

~19 949

~24 582

~I~07 3

33 530

~26 767 This schedule summarizes the receipts and disbursements in funds required under thc Bond Indenture and has been prepared from thc trust statements.

The balances in the funds consist of cash and investments at original cost.

These balances do not include accrued interest receivable of $1,245 and $ 1,223 and Decommissioning Fund accrued interest receivable of $267 and $ 138 at June 30, 1996 and 1995, respectively, nor do they include total amortized net investment discounts of $788 and $918 at June 30, 1996 and 1995, respectively.

These balances also do not include unrealized loss on investments in funds available for sale of $456 and $226 at June 30, 1996 and 1995, respectively.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT 55527S SUPPLFBIENTAL BALANCESHEET (In thousands) 1996 unc 30 1995 Utilityplant:

Transmission General S

674,606 18 893 8

675,301 18 893 Less - Accumulated depreciation 693,499 194 127 694,194 174 392 Construction work in progress 499,372 519,802 1 212 Nct utility plant Special funds:

Available for sale at fair value:

Investmcnts Escrow account - Subordinate Refunding Crossover Series Advance to Intermountain Power Agency Interest rcccivablc Cash and cash equivalents 499 372 102,842 343,898 19,550 2,169 90 324 521 014 144,476 343,921 19,550 1,807 54 678 558 783 564 432 Accounts receivable 2,687 2,469 Costs recoverable from future billings to participants Unrealized loss on investments in funds available for sale 203,787 2,865 183,154 1,89?

Unamortized debt expenses, less accumulated amortization of S59,752 and S51,415 164 247 172 780 Total assets aL43~741 1 445 746 I.IABILITIES Long-term debt Subordinate Refunding Crossover Series 1 034 757 347 388 5

1 042002 347 782 Current liabilities:

Long-term debt duc within one year Accrued interest Accounts payable and accrued expenses Total current liabilities 10,845 38,436 315 49 596 14,325 39,379 2 258 55 962 Commitmcnts and contingencies Total liabilities Scc notes to financial statements.

~13

~741 1 445 746

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS (In thousands)

Year Ended une 30 1996 1995 Operating revenue:

Sales of transmission services 85 297 91 250 Operating expenses:

Other operations Maintenance Depreciation Total operating expenses Operating income Investment income Income before debt expense 10,192 5,236 20 329 35 757 49,540 28.993 78,533 11,839 4,498 19 735 36 072 55,178 30 085 85,263 Debt expense Costs recoverable from future billings to participants 99 166 99 823 OL22 KB

(~4~

See notes to financial statements.

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SOUTIIERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSMISSION SYSTEM PROJECT SUPPI.FMENT I. STATEMENT OF CASH FLOWS (In thousands)

Year Ended une 30 1996 1995 Cash flows from operating activities:

Costs recoverable from future billings to participants Adjustments to arrive at nct cash provided by (used for) operating activitics-Dcpreciation Amortization of debt costs Write-offof construction work in progress costs Changes in assets and liabilities:

Interest reccivablc Accounts rcccivablc Other assets Accrued interest Accounts payablc and accrued expenses (8 20,633) 20,329 11,739 1,313 (362)

(218)

(943)

~1943 (8 14,560) 19,735 11,545 315 1,940 17 10,773

~268 Net cash provided by operating activities 9 282 29 497 Cash flows from investing activities:

Payments for construction of facility Purchases of investments Proceeds from sale/maturity of invcstmcnts (154,904) 195 593 (315)

(94,425) 90 462 Net cash provided by (used for) investing activities 40 689 4 278 Cash flows from capital and rclatcd financing activities:

Payment for defeasance of revenue bonds Repayment of principal on long-term debt 14 325 (5,479)

~13 615 Nct cash used for capital and related financing activities Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at cnd of year 14 325 35,646 54 678 19 094 6,125 48 553

~5~78 Supplemental disclosure of cash flow information:

Cash paid during the year for interest (nct of amount capitalized) 8 370 96 072 Sce notes to financial statcmcnts.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SOUTHERN TRANSh!ISSION SYSTEM PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPIS AND DISBURSEhf ERIS IN FUNDS REQUIRED BY TIIE BOND INDENTURE YFA D D F30 1996 (In thousands)

Construction Fund-Initial Facilities

~t Debt Service General Operating

~utci Reserve Fund Issue

~un Escrow Fund Balance at June 30, 1995 222 602

~~4 2

77 ull 5

3M4222 2

542 660 Additions:

Investmcnt earnings Distribution of investment earnings Revenue from transmission sales Distribution of revenue Transfer from escrow for principal and Interest payments 12 6,485 (5,710) 42@30

~29 463 9,408 83,953 (78,891) 635 39102 (596) 6,182 (5303) 50,942 18,567 (9,284)

(9,278) 29,264 83,953

~29 Total

~au

~a33

~5264

~2~2

~26 28 Deductions:

Operating expenses Payment of principal Interest paid Payment of principal and interest on escrow bonds Premium and interest paid on investment purchases Other 41476 12,921 1,267 14,904 39 149325 19/86 26@75 14,904 14/25 60,862 39,496 I/06 Total Balance at June 30, 1996 55 764 39

~61 35 z

234

~106 411

~605

~4757

~76 219

~343 874

~13 t~4 536 946 This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust staterncnts.

The balances in the funds consist of cash and Investments at original cost.

These balances do not include accrued interest receivable of $2,169 and $ 1,807 at June 30, 1996 and 1995, respectively, nor do they include total amortized net investment discounts of $2,983 and $2@12 at June 30, 1996 and 1995, respectively.

'Ihese balances do not include unrealized loss on investments in funds available for sale of $2,865 and $1,897 at June 30, 1996 and 1995, respectively.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL BALANCESHEET (In thousands)

ASSETS 1996 une 30 1995 Special funds:

Investments available for sale at fair value Advances for capacity and energy, net Interest receivable Cash and cash equivalents 8 9,628 10,119 6

1 997 7,653 11,903 26 2 745 21 750 22 327 Accounts receivable 19 Costs recoverable from future billings to participants Unrealized loss on investments in funds available for sale 7,538 7,299 18 Unamortized debt expenses, less accumulated amortization of $937 and $795 3 307 3 512 Total assets R&2&i f~l'g LIABILITIES Long-term debt 30 981 31 977 Current liabilities:

Long-term debt due within one year Accrued interest Accounts payable and accrued expenses 1,085 489 62 610 500 69 Total current liabilities 1 636 1 179

.Commitments and contingencies Total liabilities

~2~17 See notes to financial statements.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS (In thousands)

Year Ended une 30 1996 1995 Operating revenue:

Sales of electric energy Operating expenses:

Capacity charges Energy charges Other operations Reimbursement of advances for capacity and energy Total operating expenses 3 349 1,011 844 342 3

2 200 3 569 1,207 832 360 12 2 411 Operating income Investment income 1,149 874 1,158 514 Income before debt expense Debt expense Costs recoverable from future billings to participants 2,023 2 262 1,672 2 810 (l~K)

See notes to financial statements.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS (In thousands)

Cash flows from operating activities:

Costs recoverable from future billings to participants Adjustments to arrive at net cash used for operating activities:

Amortization of debt costs Changes in assets and liabilities:

Interest receivable Accounts receivable Other assets Accrued interest Accounts payable and accrued expenses 294 288 20 (19) 54 21 (18)

~594 Year Ended une 30 1996 1995 (8

239)

(8 638)

Net cash provided by (used) for operating activities 38 887 Cash flows from investing activities:

Purchases of investments Proceeds from sale/maturity of investments Advances for capacity and energy, net (22,665) 20,705 1 784 (11,546) 9,491 1 415 Net cash used for investing activities

~176

~640 Cash flows from capital and related financing activities:

Payment for defeasance of revenue bonds Repayment of principal on long-term debt (319)

~610

~860 Net cash used for capital and related financing activities

~610

~1179 Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (748) 2 745

~lr)7 (2,706) 5 451 j~27~4 Supplemental disclosure of cash flow information:

Cash paid during year for interest (net of amount capitalized)

See notes to financial statements.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY HOOVER UPRATING PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE YEAR ENDED UNE 30 1996 (In thousands)

Advance Payments Funds Operating Fund Revenue Fund Operating Working Capital Fund Debt Service Account Debt Service Reserve Account General Reserve Account Total Balance at June 30, 1995 S

2410 560 S I 435 S 3 083 S 2876 S 10364 Additions:

Investment earnings Distribution of investment earnings Discount on investment purchases Revenue from power sales Distribution of revenues Transfer from escrow for principal and interest payments Total 16 193 85 2 393 2 099 2

(2) 43 165 147 355 2

256 3,330 (3,342) 251 29 (29) 33 (90) 289 3,177 2 433 5 842 152 (115) 37 3

(213) 211 2 382 2 383 237 628 3,330 2 318 6 513 Deductions:

Advances for capacity and energy Payment of principal Administrative expenditures Interest paid Premium on investment purchases Payment of principal and interest on escrow bonds 75 236 117 (5) 610 1,978 2 318 37 75 610 348 1,978 37 2 318 Total 311 117

~5 4 906 37 5 366 Balance at June 30, 1996 238 560

~2;177

~3083

~52 S S 11 511 This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust statements.

The balances in the funds consist of cash and investments at original cost.

'Ihese balances do not include accrued interest receivable of $6 and $26 at June 30, 1996 and 1995, respectively, nor do they include total amortized net investment discount of $11Z and $52 at June 30, 1996 and 1995, respectivdy.

These balances abo do not include unrealized loss on investments in funds available for sale of $3 and $18 at June 30, 1996 and 1995, respectively.

41-

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ASSETS SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL BALANCESHEET (In thousands) 1996 une 30 1995 Utilityplant:

Transmission General S

48,307 I 971 Less:

Accumulated depreciation 50,278 846 Construction work in progress 49,432 3 116 39 179 Nct utility plant 52,548 39,179 Special funds:

Investmcnts available for sale at fair value Interest receivable Cash and cash equivalents 21,591 841 1 548 32,759 1,246 I 280 23 980 35285 Accounts receivable Costs recoverable from future billings to participants Unrealized loss on invcstmcnts in funds availablc for sale 1,750 1,3.94 1,963 51 Prepaid expense 2,003 Unamortized debt expenses, less accumulated amortization of $1,257 and 8736 Total assets 9 8II8

~895 5 10 408

~88 889 LIABILITIES Long-term debt 86 417 86 267 Current liabilities:

Accrued interest Accounts payable Total current liabilities 2,588 590 3 178 2,588 34 2 622 Commitments and contingencies Total liabilities

~895 5

88 889 Sce notes to financial statcmcnts.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS THREE MONTHS ENDED UNE 30 1996*

(In thousands)

Operating revenue:

Sales of transmission services 226 Operating expenses:

Other operation Maintenance Depreciation 213 13 342 Total operating expenses 568 Operating loss Investment income (342) 410 Income before debt expense 68 Debt expense Costs recoverable from future billings to participants 1 462 0~%~3 See notes to financial statements.

  • Operations commenced April 1996.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS (In thousands)

Cash flows from operating activities:

Cost recoverable from future billings to participants Adjustments to arrive at net cash provided by (used for) operating activities:

Depreciation Amortization of debt costs Changes in assets and liabilities:

Interest receivable Accounts receivable Other assets Accounts payable Year Ended une 30 1996 1995

~1394 342 167 405 213 1,977 556 Net cash provided by operating activities 2 266 Cash flows from investing activities:

Interest received on investments Payments for construction of facility Purchases of investments Proceeds from sale/maturity of investments Reimbursement from WAPA (13,208)

(3,264) 14,474 4,251 (21,310)

(2,725) 26,078 83 Net cash (used for) provided by investing activities

~1998 6 377 Cash flows from capital and related financing activities:

Payment of interest on long-term debt Payment for bond issue costs (5,093)

~9 Net cash used for capital and related financing activities 5 102 Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year 268 1,275 1 280 5

~1~4

~1280 Supplemental disclosure of cash flow information:

Cash paid during the period for interest (net of amount capitalized)

See notes to financial statements.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-PHOENIX PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR FNDFD UNE 30 1996 (In thousands)

Acquisition Account Debt Service Account Debt Service Reserve Account Revenue Fund Issue Fund Operating Fund Total Balance at Junc 30, 1995

$ 18972 l 4288 5916 3, 4994 3, 34170 Additions:

Investment earnings Transfer of invcstmcnts Rcimburscmcnt from WAPA Transmission rcvcnuc Transfer of monthly tfansnllsslon costs 1,564 80 286 435 435 (435) 360 297 154 297 2,441 80 360 Total 1 644 721 65 154 297 2 881 Deductions:

Construction expcnditurcs Intcrcst paid Premium and intcrcst paid on invcstmcnt purchases Operating cxpenscs 8,536 2,642 2,534 60 8,536 5,176 89 60 Total 8 536 2 642 2 623 60 13 861 Balance at Junc 30, 1996 teuJ 2~00

~2867

~5916 s

65

~2525

~287 tc 23~0 This schcdulc summarizes the receipts and disbursements in funds required under thc Bond Indenture and has been prepared from the trust statements.

Thc balances in the funds consist of cash and investmcnts at original cost.

Thcsc balances do not include accrued intcrcst rcccivable of S841 and S1,246 at June 30, 1996 and 1995, rcspcctively, nor do they include total amortized nct invcstmcnt prcmiunls of $42 and $80 at Junc 30, 1996 and 1995, respectively.

These balances do not include unrealized loss on invcstmcnts in funds availablc for sale of S9 and $51 at Junc 30, 1996 and 1995, rcspcctivcly.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL BALANCESHFFT (In thousands)

~SFTS 1996 une 30 1995 Utilityplant:

Transmission General 8 171,068 164 Less:

Accumulated depreciation Construction work in progress Nct utility plant 171,232 1 255 169 977

~154 011 154 011 Special funds:

Investments availablc for sale at fair value Interest receivable Cash and cash equivalents 62,562 2,285 4 504 76,235 2,976 4 279 69 351 83 490 Accounts rcccivable 4,741 4,669 Costs rccovcrablc from future billings to participants Unrcalizcd loss on invcstmcnts in funds available for sale 4,383 28 171 Prepaid cxpcnsc 3,533 Unamortized debt cxpcnscs, less accumulated amortization of 83,582 and $2,098 28 123 29 607 Total assets 75 481 I.IABILITIFS Long-term debt 268 005 267 561 Current liabilities:

Accrued intcrcst Accounts payable Total current liabilities 7,884 780 8 664 7,885 35 7 920 Commitments and contingcncics Total liabilities Sce notes to financial statcmcnts.

~27t~66 275 481 I

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS THREE MONTHS ENDED UNE 30 1996*

(In thousands)

Operating revenue:

Sales of transmission services 172 Operating expenses:

Other operation Maintenance Depreciation 145 27 1 182 Total operating expenses Operating loss 1 504 1 132 Investment income 1 174 Income before debt expense Debt expense 4 425 Costs recoverable from future billings to participants C~E)

See notes to financial statements.

Operations commenced April 1996.

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SOUTHERN CALIFORNIAPUBLIC POVYER AUTHORITY MEAD-ADELANTOPROJECT SUPPLEMFNTAL STATEMFNT OF CASH FI.OWS (In thousands) 1996 une 30 1995 Cash flows from operating activities:

Cost recoverable from future billings to participants Adjustments to arrive at nct cash provided by (used for) operating activities:

Dcpreciation Amortization of debt costs Changes in assets and liabilities:

Interest receivable Accounts receivable Prepaid expense Accrued interest Accounts payable (3

4,383) 3 1,132 482 691 (72) 3,467 (I) 745 Nct cash provided by operating activities 2 981 Cash flows from investing activities:

Intcrcst rcceivcd on investments Payments for construction of facility Purchases of invcstmcnts Procccds from sale/maturity of investments Reimbursement from O'APA (15,652)

(9,184) 23,000 11,316 (71,033)

(4,627) 84,113 28 Nct cash (used for) provided by investing activities

~1838 19 797 Cash flows from capital and related financing activities:

Payments of interest on long-term debt Payment for bond issue costs (15,487)

~31 Nct cash used for capital and related financing activities 15 518 Nct increase in cash and cash equivalents Cash and cash cquivalcnts at beginning of year Cash and cash equivalents at cnd of year 225 4,279 4 279

~449k S

4 279 Supplemental disclosure of cash flow information:

Cash paid during the period for interest (net of amount capitalized)

Sec notes to financial statements.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY hIEAD-ADELANTOPROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEhIENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED UNE 30 1996 (In thousands)

Debt Acquisition Service Account Account Debt Service Reserve Account Operating Fund Issue Fund Rcvenuc Fund Total Balance at June 30, 1995 36 134 11 793

$ 16 267 16 760 80 954 Additions:

Investment earnings Transfer of invcstmcnt earnings Reimbursement from WAPA Transfers to operating fund Transmission revenue 3,217 13 772 1,196 1,196 (1,196) 451 517 1

5,704 13 (451) 521 521 Total 3 230 1 968 452 517 71 6 238 Deductions:

Construction expenditures Intcrcst paid Premium and interest paid on invcstmcnt purchases Operating cxpcnscs 3,697 7,264 189 8,505 298 3,697 15,769 298 191 Total 3 699 7 264 189 8 803 19 955 Balance at June 30, 1996

~85 663

~64~7

~16 267 263

~8474 ~71

~67 237 This schcdulc summarizes the receipts and disburscmcnts in funds required under the Bond Indenture and has been prcparcd from thc trust statements.

Thc balances in the funds consist of cash and investmcnts at original cost.

These balances do not include accrued interest receivable of S2,285 and S2,976 at June 30, 1996 and 1995, respectively, nor do they include total amortized nct invcstmcnt premiums of S143 and S269 at June 30, 1996 and 1995, respectively.

Thcsc balances do not include unrcalizcd loss on investments in funds available for sale of S28 and S171 at Junc 30, 1996 and 1995, respectively.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL BALANCESHEET (In thousands)

ASSETS 1996 une 30 1995 Special funds:

Investments available for sale at fair value Interest receivable 8 250,888 8 249,020 9220 9194.

Total assets LIABILITIES Long-term debt Arbitrage rebate payable

~2~1

$ 2~214

$ 242 786

$ 242.107 77 Accounts payable to Mead-Phoenix Project and Mead-Adelanto Project Deferred credits 6 402 2 664 6.632 1.141 Current liabilities:

Accrued interest 8 256 8.257 Commitments and contingencies Total liabilities

~2)Jgg

~2M 214 See notes to financial statements.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL STATEMENT OF CASH FLOWS (In thousands) 1996 Year Ended une 30 1995 Cash flows from operating activities Cash flows from investing activities:

Interest received on investments Arbitrage payment Purchases of investments Proceeds from sale/maturity of investments 18,380 (1,868) 18,470 (3,757)

(1,958) 5 757 Net cash provided by investing activities 16 512 16.512 Cash flows from capital and related financing activities:

Payments of interest on long-term debt 16 512 16 512 Net cash used for capital and financing activities

~16 512

~16 512 Net increase in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year See notes to financial statements.

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)

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY MULTIPLE PROJECT FUND SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED UNE 30 1996 (In thousands)

Proceeds Account Debt Service Account Earnings Account Total Balance at June 30, 1995 247 727

~1295 249 020 Additions:

Investment earnings Transfer to earnings account Transfer to debt service account 18,208 (16,512) 172 16,512 16 512

~16 512 18,380 Total 1 696 16.512 172 18 580 Deductions:

Interest paid Total 16 512 16 512 16 512 16 512 Balance at June 30, 1996

~249 42'f

~2%Ung This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust statements.

The balances in the funds consist of investments at original cost.

These balances do not include accrued interest receivable of 59,220 and $9,194 at June 30, 1996 and 1995, respectively.

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SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT ASSETS SUPPLFMFNTAL BAI.ANCESHFET (In thousands) 1996 une 30 1995 Utilityplant:

Production General S

183,309 8 613 8

183,309 7 688 Less - Accumulated depreciation 191,922 36 622 190,997 24 415 Construction work in process 155,300 3 501 166,582 2 488 Nct utility plant 158 801 169 070 Special funds:

Investmcnts available for sale at fair value Intcrcst rcccivablc Cash and cash equivalents 34,170 67 7 546 28,699 69 8 274 41 783 37 042 Accounts receivable 945 1,891 Materials and supplies Costs rccovcrablc ftxun future billings to participants Unrcalizcd loss (gain) on investments in funds availablc for sale 3,569 31,780 3,679 23,063 (28)

Unamortized debt expenses, less accumulated amortization of $942 and $628 3 090 3 461 Total assets

~2~72 238 78 LIABILITIFS Long-term debt 222 444 228 167 Current liabilities:

Long-term debt due within one year Accrued interest Accounts payable 6,035 5,994 5 499 5,994 4 017 Total current liabilities 17 528 10 011 Commitntcnts and contingcncics Total liabilities See notes to financial statements.

~23

~7 238 178 l

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL STATEMENT OF OPERATIONS (In thousands)

Year Ended une 30 1996 1995 Operating revenue:

Sales of electric energy Operating expenses:

Other operations Maintenance Depreciation Decommissioning Total operating expenses Operating income (loss)

Investment income 50 117 314 35,760 9,095 3 113 48 282 1,835 2 062 50 854 316 38,511 9,095 3 112 51 034 (180) 1.884 Income before debt expense Debt expense Costs recoverable from future billings to participants 3,897 12.614 5 8717 1,704 12 598 See notes to financial statements.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL STATEMENT OF CASH FLOWS (In thousands)

Year Ended une 30 1996 1995 Cash flows from operating activities:

Costs recoverable from future billings to participants Adjustments to arrive at net cash provided by (used for) operating activities-Depreciation Decommissioning costs Amortization of debt costs Changes in assets and liabilities:

Interest receivable Accounts receivable Materials and supplies Other assets Accounts payable 9,095 3,113 626 9,095 3,112 610 2

946 110 56 1 482 (59)

(669) 1,340 81 711 (S

8,717)

(S 10,894)

Net cash provided by operating activities 6 713 3 327 Cash flows from investing activities:

Payments for construction of facility Purchases of investments Proceeds from sale/maturity of investments (1,938)

(14,370) 8 867 (1,861)

(12,749) 10 918 Net cash used for investing activities 7 441 3 692 Net decrease in cash and cash equivalents Cash and cash equivalents at beginning of year Cash and cash equivalents at end of year (728)

(365) 8 274 8 639

~Kk M~>>4 Supplemental disclosure of cash flow information:

Cash paid during the year for interest (net of amount capitalized) i~12K

~>I 'K See notes to financial statements.

SOUTHERN CALIFORNIAPUBLIC POWER AUTHORITY SAN JUAN PROJECT SUPPLEMENTAL SCHEDULE OF RECEIPTS AND DISBURSEMENTS IN FUNDS REQUIRED BY THE BOND INDENTURE FOR THE YEAR ENDED UNE 30 1996 (In thousands)

Revenue Fund Operating Fund Operating Reserve Project Fund Debt Service Reserve &

Debt Service Revenue Reserve

~Contin ene Total Balance at June 30, 1995 1 633 112

$ 5 994

~18 025 rt 11 179

~36 943 Additions:

Investment earnings Distribution of investment earnings Discount on investment purchases Revenue from power sales Distribution of revenues Refund from Century Power Corporation Total 32 1,945 4

52,933 (54,914)

(64) 10 38,249 38 249 12 (168) 114 14,515 400 414 14 515 1,061 (1,061) 537 (652) 112 2,145 1,750 242 52,933 400 2 142 55 325 Deductions:

Payment for construction Administrative expenditures Interest paid Total 1,938 36,691 38 629 11 988 11 988 1,938 36,691 11 988 50 617 Balance at June 30, 1996

~253 g

5 g

526 3 8 621

~18 026

~3 321 r~4~65 This schedule summarizes the receipts and disbursements in funds required under the Bond Indenture and has been prepared from the trust statements.

The balances in the funds consist of cash and investments at original cost.

These balances do not include accrued interest receivable of S67 and S69 at June 30, 1996 and 1995, respectively, nor do they include total amortized net investment discount of $69 and S2 at Junc 30, 1996 and 1995, respectively.

These balances do not include unrealized loss (gain) on investments in funds available for sale of S4 and ($28) at June 30, 1996 and 1995, respectively.

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