SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
(Mark One)
| x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2003
or
| ¨ | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to
Commission file number 000-50039
OLD DOMINION ELECTRIC COOPERATIVE
(Exact Name of Registrant as Specified in Its Charter)
| VIRGINIA |
23-7048405 | |
| (State or Other Jurisdiction of Incorporation or Organization) |
(I.R.S. Employer Identification No.) | |
| 4201 Dominion Boulevard, Glen Allen, Virginia |
23060 | |
| (Address of Principal Executive Offices) |
(Zip Code) |
(804) 747-0592
(Registrant’s Telephone Number, Including Area Code)
Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No ¨
Indicate by check mark whether the Registrant is an accelerated filer (as defined in Exchange Act Rule 12b-2). Yes ¨ No x
The Registrant is a membership corporation and has no authorized or outstanding equity securities.
OLD DOMINION ELECTRIC COOPERATIVE
| Page Number | ||||
| PART I. Financial Information |
||||
| Item 1. |
Financial Statements |
|||
| Condensed Consolidated Balance Sheets – March 31, 2003 (Unaudited) and December 31, 2002 |
3 | |||
| 4 | ||||
| 4 | ||||
| 5 | ||||
| 6 | ||||
| Item 2. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations |
8 | ||
| Item 3. |
14 | |||
| Item 4. |
14 | |||
| PART II. Other Information |
||||
| Item 1. |
15 | |||
| Item 5. |
15 | |||
| Item 6. |
15 | |||
| 16 | ||||
2
OLD DOMINION ELECTRIC COOPERATIVE
CONDENSED CONSOLIDATED BALANCE SHEETS
| March 31, 2003 |
December 31, 2002* |
|||||||
| (in thousands) |
||||||||
| ASSETS: |
(unaudited) |
|||||||
| Electric Plant: |
||||||||
| In service |
$ |
940,237 |
|
$ |
926,805 |
| ||
| Less accumulated depreciation |
|
(374,804 |
) |
|
(364,653 |
) | ||
|
|
565,433 |
|
|
562,152 |
| |||
| Nuclear fuel, at amortized cost |
|
3,369 |
|
|
4,226 |
| ||
| Construction work in progress |
|
409,601 |
|
|
371,708 |
| ||
| Net Electric Plant |
|
978,403 |
|
|
938,086 |
| ||
| Investments: |
||||||||
| Nuclear decommissioning trust |
|
56,447 |
|
|
56,684 |
| ||
| Lease deposits |
|
143,877 |
|
|
143,598 |
| ||
| Other |
|
71,133 |
|
|
77,936 |
| ||
| Total Investments |
|
271,457 |
|
|
278,218 |
| ||
| Current Assets: |
||||||||
| Cash and cash equivalents |
|
32,697 |
|
|
67,829 |
| ||
| Receivables |
|
53,455 |
|
|
54,566 |
| ||
| Fuel, materials and supplies, at average cost |
|
11,047 |
|
|
11,467 |
| ||
| Prepayments |
|
2,229 |
|
|
2,154 |
| ||
| Deferred energy |
|
13,222 |
|
|
— |
| ||
| Total Current Assets |
|
112,650 |
|
|
136,016 |
| ||
| Deferred Charges: |
||||||||
| Regulatory assets |
|
64,637 |
|
|
65,883 |
| ||
| Other |
|
12,342 |
|
|
11,856 |
| ||
| Total Deferred Charges |
|
76,979 |
|
|
77,739 |
| ||
| Total Assets |
$ |
1,439,489 |
|
$ |
1,430,059 |
| ||
| CAPITALIZATION AND LIABILITIES: |
||||||||
| Capitalization: |
||||||||
| Patronage capital |
$ |
238,250 |
|
$ |
235,534 |
| ||
| Accumulated other comprehensive (loss) |
|
(431 |
) |
|
(10,911 |
) | ||
| Long-term debt |
|
751,351 |
|
|
750,682 |
| ||
| Total Capitalization |
|
989,170 |
|
|
975,305 |
| ||
| Current Liabilities: |
||||||||
| Long-term debt due within one year |
|
11,913 |
|
|
11,913 |
| ||
| Accounts payable |
|
64,259 |
|
|
75,333 |
| ||
| Accounts payable – members |
|
58,101 |
|
|
59,944 |
| ||
| Accrued expenses |
|
47,674 |
|
|
35,249 |
| ||
| Deferred energy |
|
— |
|
|
3,039 |
| ||
| Deferred revenue |
|
5,584 |
|
|
10,278 |
| ||
| Total Current Liabilities |
|
187,531 |
|
|
195,756 |
| ||
| Deferred Credits and Other Liabilities |
||||||||
| Asset retirement obligation |
|
39,560 |
|
|
— |
| ||
| Decommissioning reserve |
|
— |
|
|
56,684 |
| ||
| Obligations under long-term leases |
|
146,744 |
|
|
146,465 |
| ||
| Regulatory liabilities |
|
29,271 |
|
|
1,303 |
| ||
| Other |
|
47,213 |
|
|
54,546 |
| ||
| Total Deferred Credits and Other Liabilities |
|
262,788 |
|
|
258,998 |
| ||
| Commitments and Contingencies |
|
— |
|
|
— |
| ||
| Total Capitalization and Liabilities |
$ |
1,439,489 |
|
$ |
1,430,059 |
| ||
The accompanying notes are an integral part of the condensed consolidated financial statements.
* The Condensed Consolidated Balance Sheet at December 31, 2002, has been taken from the audited financial statements at that date, but does not include all disclosures required by generally accepted accounting principles.
3
OLD DOMINION ELECTRIC COOPERATIVE
CONDENSED CONSOLIDATED STATEMENTS OF REVENUES,
EXPENSES AND PATRONAGE CAPITAL (UNAUDITED)
| Three Months Ended March 31, |
|||||||||
| 2003 |
2002 |
||||||||
| (in thousands) |
|||||||||
| Operating Revenues |
$ |
143,917 |
|
$ |
132,247 |
| |||
| Operating Expenses: |
|||||||||
| Fuel |
|
13,269 |
|
|
13,596 |
| |||
| Purchased power |
|
109,672 |
|
|
64,607 |
| |||
| Deferred energy |
|
(16,261 |
) |
|
22,366 |
| |||
| Operations and maintenance |
|
15,385 |
|
|
8,697 |
| |||
| Administrative and general |
|
5,181 |
|
|
4,667 |
| |||
| Depreciation, amortization and decommissioning |
|
5,438 |
|
|
5,841 |
| |||
| Amortization of regulatory liability, net |
|
(4,354 |
) |
|
929 |
| |||
| Taxes other than income taxes |
|
837 |
|
|
865 |
| |||
| Accretion |
|
517 |
|
|
— |
| |||
| Total Operating Expenses |
|
129,684 |
|
|
121,568 |
| |||
| Operating Margin |
|
14,233 |
|
|
10,679 |
| |||
| Other Income/(Expense), net |
|
(20 |
) |
|
805 |
| |||
| Investment Income |
|
145 |
|
|
1,454 |
| |||
| Interest Charges, net |
|
(8,371 |
) |
|
(10,422 |
) | |||
| Net Margin Before Cumulative Effect of Change in Accounting Principle |
|
5,987 |
|
|
2,516 |
| |||
| Cumulative Effect of Change in Accounting Principle |
|
(3,271 |
) |
|
— |
| |||
| Net Margin After Cumulative Effect of Change in Accounting Principle |
|
2,716 |
|
|
2,516 |
| |||
| Patronage Capital – Beginning of Period |
|
235,534 |
|
|
225,537 |
| |||
| Patronage Capital – End of Period |
$ |
238,250 |
|
$ |
228,053 |
| |||
OLD DOMINION ELECTRIC COOPERATIVE
CONDENSED CONSOLIDATED STATEMENTS
OF COMPREHENSIVE INCOME (UNAUDITED)
| Three Months Ended March 31, |
||||||||
| 2003 |
2002 |
|||||||
| (in thousands) |
||||||||
| Net Margin |
$ |
2,716 |
|
|||||