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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q

(Mark One)    
     
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF  
  THE SECURITIES EXCHANGE ACT OF 1934  
     
  For the quarterly period ended March 31, 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 No. 33-7591

Oglethorpe Power Corporation
(An Electric Membership Corporation)
(Exact name of registrant as specified in its charter)

Georgia
(State or other jurisdiction of
incorporation or organization		   58-1211925
(I.R.S. employer
identification no.)
     
Post Office Box 1349    
2100 East Exchange Place    
Tucker, Georgia   30085-1349
(Address of principal executive offices)   (Zip Code)
     
Registrant’s telephone number, including area code   (770) 270-7600

               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                No

              Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Securities Exchange Act of
1934).                Yes                No

              Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date. The registrant is a membership corporation and has no authorized or outstanding equity securities.

 

OGLETHORPE POWER CORPORATION
INDEX TO QUARTERLY REPORT ON FORM 10-Q
FOR THE QUARTER ENDED MARCH 31, 2004

   Page No.
PART I – FINANCIAL INFORMATION  
       
  Item 1. Financial Statements  
       
    Condensed Balance Sheets as of March 31, 2004
(Unaudited) and December 31, 2003
 3
       
     Condensed Statements of Revenues and Expenses
(Unaudited) for the Three Months ended
 March 31, 2004 and 2003 
 5
       
     Condensed Statements of Patronage Capital and Membership
Fees and Accumulated Other Comprehensive Margin
(Unaudited) for the Three Months ended
March 31, 2004 and 2003
6
       
    Condensed Statements of Cash Flows (Unaudited)
For the Three Months ended March 31, 2004 and 2003                                                
    7
       
    Notes to Condensed Financial Statements
For the Three Months ended March 31, 2004 and 2003                                                  
 8
       
  Item 2. Management’s Discussion and Analysis of
Financial Condition and Results of Operations                                               
 11
       
  Item 3. Quantitative and Qualitative Disclosures About Market Risk 17
       
  Item 4. Controls and Procedures 17
       
PART II – OTHER INFORMATION  
       
  Item 1. Legal Proceedings 18
       
  Item 5. Other      18
       
  Item 6. Exhibits and Reports on Form 8-K 19
       
SIGNATURES 20

2

PART I – FINANCIAL INFORMATION              
Item 1. Financial Statements              
               
               
               
Oglethorpe Power Corporation              
Condensed Balance Sheets              
March 31, 2004 and December 31, 2003              
     (dollars in thousands)      
               
    2004       2003  
 
 
Assets   (Unaudited)          
               
Electric plant:              
In service
 $ 5,764,860     $ 5,755,553  
Less: Accumulated provision for depreciation
   (2,147,683 )     (2,107,274 )
 
 
    3,617,177       3,648,279  
               
Nuclear fuel, at amortized cost
   87,271       90,283  
Construction work in progress
   26,268       26,212  
 
 
    3,730,716       3,764,774  
 
 
               
Investments and funds:              
Decommissioning fund, at market
   187,514       180,448  
Deposit on Rocky Mountain transactions, at cost
   78,994       77,684  
Bond, reserve and construction funds, at market
   8,095       21,629  
Investment in associated organizations, at cost
   30,780       29,374  
Other, at cost
   1,084       1,084  
 
 
    306,467       310,219  
 
 
               
Current assets:              
Cash and temporary cash investments, at cost
   107,892       226,830  
Other short-term investments, at market
  97,292       96,213  
Receivables
   102,471       112,248  
Inventories, at average cost
   106,628       105,338  
Prepayments and other current assets
   4,486       4,959  
 
 
    418,769       545,588  
 
 
               
Deferred charges:              
Premium and loss on reacquired debt, being amortized
   145,783       139,741  
Deferred amortization of capital leases
   110,569       110,626  
Deferred debt expense, being amortized
   22,832       23,953  
Deferred nuclear outage costs, being amortized
   17,140       14,764  
Deferred asset retirement obligations costs, being amortized
   11,571       14,821  
Other
   4,708       5,199  
 
 
    312,603       309,104  
 
 
  $ 4,768,555     $ 4,929,685  
 
 
               

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

3

Oglethorpe Power Corporation              
Condensed Balance Sheets              
March 31, 2004 and December 31, 2003              
     (dollars in thousands)      
               
    2004       2003  
 
 
Equity and Liabilities   (Unaudited)          
               
Capitalization:              
Patronage capital and membership fees
$ 457,136     $ 444,418  
Accumulated other comprehensive loss
   (53,196 )     (49,814 )
 
 
    403,940       394,604  
               
Long-term debt
   3,270,791       3,315,128  
Obligation under capital leases
   338,063       342,232  
Obligation under Rocky Mountain transactions
   78,994       77,684  
 
 
    4,091,788       4,129,648  
 
 
               
Current liabilities:              
Long-term debt and capital leases due within one year
   139,508       237,522  
Accounts payable
   34,784       63,559  
Accrued interest
   10,931       7,158  
Accrued and withheld taxes
   13,746       19,957  
Other current liabilities
   6,790       9,109  
 
 
    205,759       337,305  
 
 
               
Deferred credits and other liabilities:              
Gain on sale of plant, being amortized
   45,290       45,909  
Net benefit of Rocky Mountain transactions, being amortized
   72,466       73,263  
Asset retirement obligations
   236,940       233,155  
Accumulated retirement costs for other obligations
   35,390       35,349  
Interest rate swap arrangements
   55,059       49,916  
Other
   25,863       25,140  
 
 
    471,008       462,732  
 
 
  $ 4,768,555     $ 4,929,685  
 
 
               

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

4

Oglethorpe Power Corporation              
Condensed Statements of Revenues and Expenses (Unaudited)              
For the Three Months Ended March 31, 2004 and 2003              
     (dollars in thousands)      
               
    Three months       
   
 
    2004       2003  
 
 
Operating revenues:              
Sales to Members
 $ 296,687     $ 262,514  
Sales to non-Members
   8,157       10,977  
 
 
Total operating revenues
   304,844       273,491  
 
 
               
Operating expenses:              
Fuel
   57,861       45,305  
Production
   58,322       56,303  
Purchased power
   87,697       83,972  
Depreciation and amortization
   38,133       32,764  
Accretion
   6,787       69  
 
 
Total operating expenses
   248,800       218,413  
 
 
Operating margin   56,044       55,078  
 
 
               
Other income (expense):              
Investment income
   9,958       5,441  
Amortization of deferred gains
   619       619  
Amortization of net benefit of sale of income tax benefits
   796       796  
Allowance for equity funds used during construction
   84       125  
Other
   735       772  
 
 
Total other income
   12,192       7,753  
 
 
               
Interest charges:              
Interest on long-term-debt and capital leases
   51,276       48,443  
Other interest
   682       1,738  
Allowance for debt funds used during construction
  (612 )     (869 )
Amortization of debt discount and expense
   4,172       3,600  
 
 
Net interest charges
   55,518       52,912  
 
 
Net margin $ 12,718     $ 9,919  
 
 
               

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

5

Oglethorpe Power Corporation                    
Condensed Statements of Patronage Capital and Membership Fees                    
and Accumulated Other Comprehensive Margin (Unaudited)                    
For the Three Months Ended March 31, 2004 and 2003                    
    (dollars in thousands)         
                     
                     
                     
    Patronage     Accumulated          
    Capital and     Other          
    Membership     Comprehensive          
    Fees     Margin (Loss)       Total  
 
 
 
                     
                     
Balance at December 31, 2002 $ 427,569     ($55,751 )   $ 371,818  
 
 
 
Components of comprehensive margin:                    
Net margin
   9,919             9,919  
Unrealized gain on interest rate swap arrangements
         1,246