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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 10-Q

 

 

(Mark One)

x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

 

For the quarterly period ended June 30, 2004

 

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 the Exchange Act of Rule 12b-2).    Yes  ¨    No  x

 

The Registrant is a membership corporation and has no authorized or outstanding equity securities.

 

Table of Contents

OLD DOMINION ELECTRIC COOPERATIVE

 

INDEX

 

        

Page

Number

    

PART I. Financial Information

    

Item 1.

   Financial Statements     
    Condensed Consolidated Balance Sheets – June 30, 2004 (Unaudited) and December 31, 2003    3
   

Condensed Consolidated Statements of Revenues, Expenses and Patronage Capital (Unaudited) – Three and Six Months Ended June 30, 2004 and 2003

    4
   

Condensed Consolidated Statements of Comprehensive Income (Unaudited) – Three and Six Months Ended June 30, 2004 and 2003

    4
   

Condensed Consolidated Statements of Cash Flows (Unaudited) – Six Months Ended June 30, 2004 and 2003

    5
    Notes to Condensed Consolidated Financial Statements    6

Item 2.

   Management’s Discussion and Analysis of Financial Condition and Results of Operations    9

Item 3.

   Quantitative and Qualitative Disclosures About Market Risk    19

Item 4.

   Controls and Procedures    19

PART II. Other Information

    

Item 1.

   Legal Proceedings    20

Item 6.

   Exhibits and Reports on Form 8-K    20

Signature

   21

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OLD DOMINION ELECTRIC COOPERATIVE

PART I. FINANCIAL INFORMATION

 

ITEM 1. FINANCIAL STATEMENTS

CONDENSED CONSOLIDATED BALANCE SHEETS

 

    

June 30,

2004

     December 31,
2003*
  
     (in thousands)  
     (unaudited)        

ASSETS:

                 

Electric Plant:

                 

In service

    $ 1,320,588     $ 1,313,649  

Less accumulated depreciation

      (413,264 )     (397,327 )
    
 
       907,324       916,322  

Nuclear fuel, at amortized cost

      8,399       7,439  

Construction work in progress

      189,507       161,645  
    
 

Net Electric Plant

      1,105,230       1,085,406  
    
 

Investments:

                 

Nuclear decommissioning trust

      70,672       68,780  

Lease deposits

      152,268       150,559  

Other

      50,399       57,659  
    
 

Total Investments

      273,339       276,998  
    
 

Current Assets:

                 

Cash and cash equivalents

      21,694       31,758  

Receivables

      61,331       59,708  

Fuel, materials and supplies, at average cost

      28,792       23,523  

Prepayments

      1,816       2,571  
    
 

Total Current Assets

      113,633       117,560  
    
 

Deferred Charges:

                 

Regulatory assets

      62,972       68,234  

Other

      15,284       14,138  
    
 

Total Deferred Charges

      78,256       82,372  
    
 

Total Assets

    $ 1,570,458     $ 1,562,336  
    
 

CAPITALIZATION AND LIABILITIES:

                 

Capitalization:

                 

Patronage capital

    $ 253,542     $ 247,590  

Accumulated other comprehensive income

      111       —    

Long-term debt

      874,432       873,041  
    
 

Total Capitalization

      1,128,085       1,120,631  
    
 

Current Liabilities:

                 

Accounts payable

      48,623       66,812  

Accounts payable – members

      68,815       47,788  

Accrued expenses

      38,832       36,439  

Deferred energy

      6,145       13,582  
    
 

Total Current Liabilities

      162,415       164,621  
    
 

Deferred Credits and Other Liabilities

                 

Asset retirement obligations

      44,870       42,997  

Obligations under long-term leases

      155,144       153,659  

Regulatory liabilities

      37,863       37,024  

Other

      42,081       43,404  
    
 

Total Deferred Credits and Other Liabilities

      279,958       277,084  
    
 

Commitments and Contingencies

      —         —    
    
 

Total Capitalization and Liabilities

    $ 1,570,458     $ 1,562,336  
    
 
* The Condensed Consolidated Balance Sheet at December 31, 2003, has been taken from the audited financial statements at that date, but does not include all disclosures required by generally accepted accounting principles.

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

3

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OLD DOMINION ELECTRIC COOPERATIVE

 

CONDENSED CONSOLIDATED STATEMENTS OF REVENUES,

EXPENSES AND PATRONAGE CAPITAL (UNAUDITED)

 

     Three Months Ended
June 30,
    

Six Months Ended

June 30,

  
     2004
     2003
     2004
     2003
  
     (in thousands)     (in thousands)  

Operating Revenues

    $ 132,646     $ 132,120     $ 267,607     $ 276,037  
    
 
 
 

Operating Expenses:

                                 

Fuel

      21,475       15,886       41,600       29,155  

Purchased power

      66,603       73,573       147,536       183,245  

Deferred energy

      432       6,673       (7,437 )     (9,588 )

Operations and maintenance

      11,895       10,047       20,720       25,432  

Administrative and general

      6,957       6,686       14,569       11,867  

Depreciation, amortization and decommissioning

      7,336       5,387       14,668       10,825  

Amortization of regulatory asset/(liability), net

      2,530       1,777       4,286       (2,577 )

Taxes other than income taxes

      1,199       826       2,419       1,663  

Accretion

      553       529       1,106       1,046  
    
 
 
 

Total Operating Expenses

      118,980       121,384       239,467       251,068  
    
 
 
 

Operating Margin

      13,666       10,736       28,140       24,969  
    
 
 
 

Other Income/(Expense), net

      44       (234 )     32       (254 )

Investment Income

      1,402       1,340       1,963       1,485  

Interest Charges, net

      (12,112 )     (9,074 )     (24,183 )     (17,445 )
    
 
 
 

Net Margin Before Cumulative Effect of Change in Accounting Principle

      3,000       2,768       5,952       8,755  

Cumulative Effect of Change in Accounting Principle

      —         —         —         (3,271 )
    
 
 
 

Net Margin After Cumulative Effect of Change in Accounting Principle

      3,000       2,768       5,952       5,484  
    
 
 
 

Patronage Capital – Beginning of Period

      250,542       238,250       247,590       235,534  
    
 
 
 

Patronage Capital – End of Period

    $ 253,542     $ 241,018     $ 253,542     $ 241,018  
    
 
 
 

OLD DOMINION ELECTRIC COOPERATIVE

 

CONDENSED CONSOLIDATED STATEMENTS

OF COMPREHENSIVE INCOME (UNAUDITED)

 

 

 

    

Three Months Ended

June 30,

     Six Months Ended June
30,
  
     2004
     2003
     2004
     2003
  
     (in thousands)     (in thousands)  

Net Margin

    $ 3,000     $ 2,768     $ 5,952     $ 5,484  
    
 
 
 

Other Comprehensive Income:

                                 

Unrealized gain on derivative contracts

      111       431       111       10,911  
    
 
 
 

Other comprehensive income

      111       431       111       10,911  
    
 
 
 

Comprehensive Income

    $ 3,111     $ 3,199     $ 6,063     $ 16,395  
    
 
 
 

 

The accompanying notes are an integral part of the condensed consolidated financial statements.

 

4

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OLD DOMINION ELECTRIC COOPERATIVE

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

 

    

Six Months Ended

June 30,

  
     2004
     2003
  
     (in thousands)  

Operating Activities:

                 

Net Margin

    $ 5,952     $ 5,484  

Adjustments to reconcile net margins to net cash provided by (used for) operating activities: