Florida Power & Light Company, P.O. Box , Miami, FL 33102

Transcription

1 Flrida Pwer & Light Cmpany, P.O. Bx 291, Miami, FL 3312 June 15,211 Mr. Jhn Slemkewicz Public Utilities Supervisr Divisin f Ecnmic Regulatin Flrida Public Service Cmmissin 254 Shumard Oak Blvd. Tallahassee, FL Dear Mr. Slemkewicz: Enclsed is Flrida Pwer & Light Cmpany's Rate f Return Surveillance Reprt t the Flrida Public Service Cmmissin fr April 211. This reprt was prepared using a thirteen mnth average and year-end rate base and adjustments cnsistent with Dcket N EI, Order N. PSC-l FOF-EI. The required rate f return was calculated using the return n cmmn equity as authrized in the afrementined dcket and rder. This reprt als includes a pr frma adjustment t net perating incme which reflects the annual effect f revenue nrmalizatin due t abnrmal weather cnditins. The pr frma return n cmmn equity is 9.71%. This reprt was prepared cnsistent with the guidelines prvided in Cmmissin Frm PSC/AFA 14. Sincerely, Kimberly Ousdahl VP, Cntrller & Chief Accunting Officer Enclsures Cpy : J. R. Kelly, Office f Public Cunsel 1. ) l l ~ l'" ~~ I 9 \ :2\ Ld I, "f l ~ I'

2 EARNINGS SURVEILLANCE REPORT SUMMARY SCHEDULE 1: PAGE 1 OF 1 ACTUAL PER BOOKS FPSC ADJUSTMENTS FPSC ADJUSTED PRO FORMA ADJUSTMENTS PRO FORMA ADJUSTED I. AVERAGE OF RETURN (JURISDICTIONAL) NET INCOME 1,325,574,532 (A) (149,424,985) (B) 1,176,149,548 (12,94,434) 1,73,245,114 BASE 17,976,893,489 (919,731,~ 17,57,161,819 17,57,161,819 AVERAGE OF RETURN 7.37% 6.9% 6.29% II. YEAR END OF RETURN (JURISDICTiONAL) NET INCOME 1,325,574,532 (A) (147,769,365) (B) 1,177,85,167 (12,94,434) 1,74,9,733 BASE 18,751,788,114 (1,417,219,933) 17,334,568,181 17,334,568,181 YEAR END OF RETURN 7.7% 6.79% 6.2% (A) INCLUDES AFUDC EARNINGS (B) INCLUDES REVERSAL OF AFUDC EARNINGS III. REQUIRED S OF RETURN AVERAGE CAPITAL STRUCTURE (FPSC ADJUSTED BASIS) LOW 5.96% MIDPOINT 6.43% HIGH 6.9% IV. FINANCIAL INTEGRITY INDICATORS A. TIMES INTEREST EARNED WITH AFUDC 5.7 (SYSTEM PER BOOKS BASIS) B. TIMES INTEREST EARNED WITHOUT AFUDC 4.92 (SYSTEM PER BOOKS BASIS) C. AFUDC AS PER CENT OF NET INCOME 5.43% (SYSTEM PER BOOKS BASIS) D. PERCENT OF CONSTRUCTION GENERA TED INTERNALLY 59.79% (SYSTEM PER BOOKS BASIS) E. LTD TO INVESTOR FUNDS 37.% (FPSC ADJUSTED BASIS) F. STD TO INVESTOR FUNDS 3.34% (FPSC ADJUSTED BASIS) G. RETURN ON COMMON EQUITY (AVERAGE) 11.% (FPSC ADJUSTED) H. RETURN ON COMMON EQUITY 9.71% (PROFORMA ADJUSTED) NOTE: THIS REPORT HAS BEEN PREPARED USING A THIRTEEN MONTH AVERAGE AND END OF PERIOD BASE AND ADJUSTMENTS CONSISTENT WITH DOCKET NO EI, ORDER NO. PSC FOF-EI. THIS REPORT DOES NOT NECESSARILY REPRESENT THE OPINION OF THE COMPANY AS I AM AWARE THAT SECTION 837.6, FLORIDA STATUES, PROVIDES: WHOEVER KNOWINGLY MAKES A FALSE STATEMENT IN WRITING WITH THE INTENT TO MISLEAD A PUBLIC SERVANT IN THE PERFORMANCE OF HIS OFFICIAL DUTY SHALL BE GUILTY OF A MISDEMEANOR OF THE SECOND DEGREE, PUNISHABLE ~ 1~ 82 ' S , OR S KIMBERLYOUSDAHL... ~ fdi'o IWI { (VICE PRESIDENT AND CHIEF ACCOUNTING OFFICER) ( (SIGNATURE) (DATE)

3 AVERAGE OF RETURN BASE SCHEDULE 2: PAGE 1 OF 3 PLANT IN SERVICE ACCUMULATED DEPRECIAliON & AMORTIZATION NET PLANT IN SERVICE PROPERT'I HELD FOR FUTURE USE CONSTRUCTION WORK IN PROGRESS NUCLEAR FUEL NET UTILlT'I PLANT WORKING CAPITAL BASE SYSTEM PER BOOKS 29,384,116,11 12,741,973,91 16, 642,142,19 13, ,4JJL129, ,96,448 19,521,42,76 (1, 1~~~1,747) 18,39,528,958 JURISDICTIONAL PER BOOKS 28,729,594,_5Z7 12,47,783,16 1 _6,~. 811, , ,372876, ,374, ,724 _il,17.267, 235) 17,976,893,489 FPSC ADJUSTMENTS (SEE SCHEDULE 2, PAGE 3 OF 3 AND SCHEDULE 2, PAGE 3B OF 3 (1 2,623,17) ( ,693) (657,643,4 1 5) (1,984,74,755) (2,641,718,169) 1,721,986,499 (919,731,671) FPSC ADJUSTED: 27,726,971,47 12,125,83,413 15,61,168,56 98,97, ,82, ,374,877 16,442,442, ,719,264 17,57,161,819 PRO forma ADJUSTMENTS PRO FORMA ADJUSTMENTS PRO FORMA ADJUSTED 27,726,971,47 12,125,83,413 15,61,168,56 98,97, ,82, ,374,877 16,442,442, ,719,264 17,57,161,819 NOTE: THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL OF THE PROFORMA ADJUSTMENTS THAT WOULD BE MADE IN A BASE FILING.

4 AVERAGE OF RETURN INCOME STATEMENT SCHEDULE 2: PAGE 2 OF 3 OPERATION & MAINTENANCE TAXES OTHER DEFERRED INVESTMENT (GAIN)/LOSS NET FUEL & DEPRECIATION & THAN TAX CREDIT ON REVENUES NET INTERCHANGE OTHER AMORTIZATION INCOME CURRENT (NET) (NET) DISPOSITION EXPENSES INCOME (A) SYSTEM PER BOOKS 1,558,924,1 4,994,73~ 1 645,95~ ~, 776, 598 1,68,696, ,244, (1,599,15) p,874,126) 9,277,116,112 1,281,87,988 JURISDICTIONAL PER BOOKS 1,364,869,278 4, 889,555~975 1&2,394,151_ 979,~7 _ 1.Q L17,234 _ ~68, ,437,259 (1,~1,919) (1,869,223) 9,116,94,553 1,267,928,126 FPSC ADJUSTMENTS FRANCHISE REVENUE (473,374,558) (12,175,194) (177,97,655) (19,82,648) (283,291,71) FRANCHISE EXPENSE (461,197,75) 177,97,15 (283,29,691 ) 283,29,691 GROSS RECEIPTS TAX (241,982,394) (241,594,326) (149,698) (241,744,23) (238,371) FINANCIAL PLANNING SERVICES (425,263) 164,45 (261,218) 261,218 INDUSTRY ASSOCIATION DUES (549,113) 211,821 ( ) 337,293 ECONOMIC DEVELOPMENT 5% (12,879) 4,968 (7,911) 7,9 11 AVIATION EXPENSES 247,768 (3, ) 1,145,811 (1,824,535) 1,824,535 EXECUTIVE COMPENSATION (31,77,71) 12,231,249 (19,476,461) ,461 NOI FUEL REC RETAIL (4,398,175,795) (4,371,853,871) (12.212,493) (3,15,872) 76,153,168 (8,38,432) (4,391,444,5) (6,731,295) CONSERVATION RECOVERY (111,136,288) (12,499,595) (6,879,61 ) (8,18) 11,971,356 (12,618,495) (11,15,814) (1,3,474) CAPACITY RECOVERY (66,837,497) (51,63,711) (58,923,946) (52,916,314) (436,22) (943,336) 3,67,394 (611,179,934) 4,342,437 ENVIRONMENTAL RECOVERY (152,7,117) (21,813,359) (18,175,64) (19,944) (49,736,629) 6,24,1 249,932 (83,38,964) (69,319,133) OTHER CASE ADJUSTMENTS (1) 1,99,634 (767,887) 1,222,747 (1,222,747) STORM DEFICIENCY RECOVERY (89,262,638) (936,596) (6,315,572) (1,85,39) (72,57,27) (17,25,431) GAIN ON SALE LAND (PROPERTY) INTEREST TAX DEFICIENCIES 1,789,853 (69,436) 1,99,417 (1,99,417) INTEREST SYCHRONIZATION 29,481,294 (8,3,148) 21,181,146 (21,181,146) FPSC ADJUSTMENTS (6,73.469,287) (4,873,464,582) (227,43,335) (139,513,511) (718,744,81) 68,27,48 (91,424,581 ) 249,932 (5,981,69,19) (91,779,178) FPSC ADJ USTED 4,311,399,991 _ 16,71,394 1,393,35, ,559, ,273,152 33],163,938 _21, (1,561,919) (1, ) 3.135,25,443 1,176,149,548 PRO FORMA ADJUSTMENTS (167,649,292) (12,77) (64,624,151) (64,744,858) (12,94,434) (SEE SCHEDULE 2, PAGE 2A OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED 4,143,75,699 16,71,394 1,393,35, ,559, ,152, ,539,787 21,12,678 (1,581,919) (1, 619,291) 3,7,55,585 1,73, (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY 58,964,359 AND THE JURISDICTIONAL NOI BY 57,645,87 (B) ECONOMIC DE VELOPMENT S RELATED TO THE PERIOD ARE. ON A COMPANY BASIS 26,575 ON A JURISDICTIONAL BASIS 257,581 CURRENT MONTH AMOUNT SYSTEM PER BOOKS 868,387,852 42,57,58 148,266, ,243,327 88,696,22 (9,99,942) 42,127,73 (264,45) (168,18) 785,858,832 82,529,2 JURISDICTIONAL PER BOOKS 854,977, ,786, ,851, ,71,764 88,16,65 (9,322,38) 43,135,159 (258,293) (167,695) 771,743,86 83,234,578 NOTE : (1) REFLECTS A PORTION OF THE DEPRECIATION RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER PARAGRAPH 7 OF THE 21 STIPULATION AND SETILEMENT AGREEMENT. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE FILING.

5 AVERAGE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS APRIL, 211 SCHEDULE 2: PAGE 2A OF 3 OPERATION & MAINTENANCE TAXES OTHER DEFERRED INVESTMENT (GAIN)IlOSS FUEL & DEPRECIATION & THAN TAX CREDIT ON REVENUES NET INTERCHANGE OTHER AMORTIZATION INCOME CURRENT ~ (NET) DISPOSITION EXPENSES NET INCOME (A) WEATHER NORMALIZATION ADJUSTMENT (1) (167,649,292) (12,77) (64,624,151 ) (64,744,656) (12,94,434) PROFORMA ADJUSTMENTS (167,649,292) (12,77) (64,624,151) (64,744,656) (12,94,434) FOOTNOTES: (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD.

6 AVERAGE OF RETURN SYSTEM ADJUSTMENTS SCHEDULE 2: PAGE 3 OF 3 BASE ADJUSTMENTS SYSTEM JURISDICTIONAL PLANT IN SERVICE: ENVIRONMENTAL 798,869, ,497,4 FUEL AND CAPACITY 52,669,269 51,6,27 AVIATION - PLANT 4,795,818 4,327,85 LOAD CONTROL 34,377,571 34,377,571 ASSET RETIREMENT OBLIGATION CAPITAL LEASES 76,212,85 17,687,159 1,2,611,785 75,337,186 17,483,956 1,2,623,17 ACCUMULATED PROVISION FOR DEPRECIATION: ENVIRONMENTAL (54,48,695) (53,8,674) ACCUM PROV DECOMMISSIONING S (2,756,312,536) (2,723,738,76) ASSET RETIREMENT OBLIGATION 1,37,988 1,292,959 ASSET RETIREMENT OBLIGATION DECOMMISSIONING 2,548,843,676 2,519,558,176 AVIATION - RESERVE (22,488,722) (22,23,333) FUEL AND CAPACITY (49,727,926) (48,716,839) OTHER CASE ADJUSTMENTS (1) 156, ,126 LOAD CONTROL CAPITAL LEASES (18,362,762) 73,577 (35,558,774) (18,362,762) 72,732 (344,979,693) CONSTRUCTION WORK IN PROGRESS: CONSTRUCTION WORK IN PROGRESS 1,585,228,667 1,56,13,98 CWIP - ECRC PROJECTS 432,289,99 2,17,518, ,97 1,657 1,984,74,755 NUCLEAR FUEL: NUCLEAR FUEL IN PROCESS NUCLEAR FUEL CAPITAL LEASES WORKING CAPITAL: (SEE SCHEDULE 2, PAGE 3B OF 3) (1,75,66,17) (1,721,986,499) ADJUSTMENTS 936,911, ,731,671 NOTE: (1) REFLECTS A PORTION OF THE DEPRECIATION RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER PARAGRAPH 7 OF THE 21 STIPULATION AND SETTLEMENT AGREEMENT

7 AVERAGE OF RETURN SYSTEM ADJUSTMENTS INCOME STATEMENT APRIL. 211 SCHEDULE 2: PAGE 3A OF 3 REVENUES OPERATION & MAINTENANCE FUEL& NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME CURRENT DEFERRED (NEn INVESTMENT TAX CREDIT (NEn (GAIN)ILOSS ON DISPOSITION EXPENSES NET INCOME (A) SYSTEM PER BOOKS S 1.558,924, ,73,569 1,645.95, ,776, ,696, ,244,98 34,7289 (1,599.15) (1.874,126) ,112 1,281,87,988 FPSC ADJUSTMENTS FRANCHISE REVENUE FRANCHISE EXPENSE GROSS RECEIPTS TAX FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION - EXPENSES EXECUTIVE COMPENSATION ADVERTISING EXPENSES NOI FUEL REC RETAIL CONSERVATION RECOVERY CAPACITY RECOVERY ENVIRONMENTAL RECOVERY OTHER CASE ADJUSTMENTS (1) STORM DEFICIENCY RECOVERY GAIN ON SALE LAND (PROPERTY) INTEREST TAX DEFICIENCIES INTEREST SYCHRONIZATION ( ) (241,982,394) (4,491.81,765) (111, ) (66, ) (152,7.117) (89, ) (4, ) (511, ) (43,26) (555,496) (13.29) (32,76.257) (12.465,959) (12,499,595) (6,67,289) (22,241,334) (951,734) 1,81,657 (3.255,519) (6.879,61) ( ) (18, ) (6,315,572) (12, ) (461,197.75) ( ,326) (3,15,872) (8.18) (436,22) (19,944) (177,97,655) 177,97,15 (149,698) ,159,129 12,373,416 76,9,224 11,971, ,816 ( ) (785,451 ) (1, ) (698,461) 29,42,755 (8,51.897) (12,618,495) 3, (8,49,) (19,82.848) (283, ) (241,744,23) ( ) ( ) (8,3) ( ) (19,72.841) (4, ) (11,15.814) (617,963,252) (83, ) 1,25,715 (72,66,55) 1.112, ( ) 283,29,691 (238,371) 264, ,213 8,3 1, ,841 ( ) (1.3,474) 11.1,624 (68.84,225) ( ) (17.196,132) ( ) (2,93,755) FPSC ADJUSTMENTS (6, ,389) ( ,966) ( ) ( ,976) (718,744,81) (91, ) 254,836 ( ) ( ) FPSC ADJUSTED ,415,856, ;149952, _ 212,336,19 ~15O) (1. J9,291) 3,193, ,735,644 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 2, PAGE 3C OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED ( ) 4,224,145, , ,622 (12,77) ,474 (64,624,151) 28,262, ,336,19 (1.599,15) (1.619,291) (64, ) 3, ,28 (12,94,434) 1.95, (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY NOTE : (1) REFLECTS A PORTION OF THE DEPRECIATION RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER PARAGRAPH 7 OF THE 21 STIPULATION AND SETILEMENT AGREEMENT. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE FILING.

8 AVERAGE OF RETURN SYSTEM ADJUSTMENTS APRIL, 211 SCHEDULE 2: PAGE 3B OF 3 WORKING CAPITAL ADJUSTMENTS SYSTEM JURISDICTIONAL ADJUSTMENTS TO ASSETS PER BOOKS: ACCOUNTS RECEIVABLE - ASSOC COS INTEREST & DIVIDENDS RECEIVABLE ACCTS RECEIVABLE - TAX REFUND NET UNDERRECOVERED FUEL, CAPACITY,ECCR, ECRC CASH CAPITAL SUB ACCOUNT POLE ATTACHMENTS RENTS RECEIVABLE PREPAYMENTS - INTEREST ON COMMERCIAL PAPER CASE EXPENSE TEMPORARY CASH INVESTMENTS ASSET RETIREMENT OBLIGATION STORM DEFICIENCY RECOVERY NUCLEAR RECOVERY JOBBING ACCOUNTS 22,141,12 26,146,35 328,767,622 11,88,69 4,479,551 2,672,5 152,76, ,46,762 3,596,659 44,864,359 21,857,475 25,811, ,588,44 11,657,34 4,379,38 2,672,5 15,128,35 829,46,762 3,596,659 44,289,66 ADJUSTMENTS TO ASSETS PER BOOKS 1,426,13,963 1,422,441,596 ADJUSTMENTS TO LIABILITIES PER BOOKS: ACCOUNTS PAYABLE - ASSOC COS ACCUM DEFERRED RETIREMENT BENEFITS ACCUM. PROV - PROPERTY & STORM INSURANCE ACCUM. PROV - REFUNDS GAIN ON SALE OF EMISSION ALLOWANCE JOBBING ACCOUNTS PAYABLE TO NUCLEAR DECOMMISSIONING FUND LEHMAN HEDGE POLE ATTACHMENT RENTS PAYABLE PREFERRED STOCK DIVIDENDS ACCRUED SJRPP ACCELED RECOVERY STORM DEFICIENCY RECOVERY ASSET RETIREMENT OBLIGATION MARGIN CALL CASH COLLATERAL NUCLEAR RECOVERY TRANSMISSION RELIABILITY ENHANCEMENT (2,777,84) (379,89) (24,135,239) (8,279,376) (2,94,565) (53,5,944) (6,262,975) (53,566,472) (2,626,364,514) (214,973,27) (4,834,77) (2,742,222) (375,445) (24,135,239) (8,165,771) (2,54,261) (52,326,955) (6,182,746) (52,511,775) (2,596,188,321 ) (214,973,27) (4,772,154) ADJUSTMENTS TO LIABILITIES PER BOOKS (3,176,673,98) (3,144,428,94) NET ADJUSTMENTS TO WORKING CAPITAL PER BOOKS (1,75,66,17) (1,721,986,499)

9 AVERAGE OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS APRIL, 211 SCHEDULE 2: PAGE 3C OF 3 OPERATION & MAINTENANCE TAXES OTHER DEFERRED INVESTMENT (GAIN)ILOSS FUEL& DEPRECIATION & THAN TAX CREDIT ON REVENUES NET INTERCHANGE OTHER AMORTIZATION INCOME CURRENT ~ (NET) DISPOSITION EXPENSES NET INCOME (Al WEATHER NORMALIZATION ADJUSTMENT (1) (167,649,292) (12,77) (64,624,151 ) (64,744,858) (12,94,434) PROFORMA ADJUSTMENTS (167,649,292) (12,77) (64,624,151) (64,744,858) (12,94,434) FOOTNOTES (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD

10 YEAR END OF RETURN BASE APRIL, 211 SCHEDULE 3: PAGE 1 OF 3 ACCUMULATED NET CONSTRUCTION PLANT IN DEPRECIATION & PLANT IN PROPERTY HELD WORK IN NET WORKING SERVICE AMORTI?ATlON SERVICE FOR FUTURE USE PROGRESS NUCLEAR FUEL UTILITY PLANT CAPITAL BASE SYSTEM PER BOOKS 29,787,792,721 12,768,844,178 17,18, ,619,818 2,778, ,771,22 2,295,265,644 (1,13,891,747) 19,164,373,897 JURISDICTIONAL PER BOOKS 29,137,7,795 12,495,388,588 16,641,682,27 13,983, , ,741,231 19,859,55,348 (1,17,267,235) 18751,788,114 FPSC ADJUSTMENTS (1,183, {33714,5121 {879,91,5151 (2,259, (3,139,26,4321 1,721,986,499 (1,417,219,933) (SEE SCHEDULE 3, PAGE 3 OF 3 AND SCHEDULE 2, PAGE 3B OF 3 FPSC ADJUSTED: 27,953,454,768 12,191,674,76 15,761,78, ,983,363 47,343,63 383,741,231 16,719,848, ,719,264-17,334,568,181 PRO FORMA ADJUSTMENTS PRO FORMA ADJUSTMENTS: PRO FORMA ADJUSTED 27,953,454,768 12,191,674,76 15,161,78,692 13,983,363 47,343,63 383,741,231 16,719,848, ,719,264 17,334,568,181

11 YEAR END OF RETURN INCOME STATEMENT APRIL,211 SCHEDULE 3: PAGE 2 OF 3 REVENUES OPERATION & MAINTENANCE FUEL & NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME CURRENT DEFERRED (NET) INVESTMENT TAX CREDIT (NEn (GAIN)/LOSS ON DISPOSITION EXPENSES NET INCOME (A) SYSTEM PER BOOKS 1,558924,1 4,994,73,569 1,645,95, ,776, ,696, ,244,98 34,72,89 (1,599,15) (1,874,126) 9,277,116,1 12 1,28187,988 JURISDICTIONAL PER BOOKS 1,384, ,889,555,975 1,62,394, ,73,187 1,61,17, , ~~, 89 31,437,259 ( ) (1,869,223) 9.116,94,553 ~~67,928,726 FPSC ADJUSTMENTS FRANCHISE REVENUE (473,374,558) (12,175,194) (177.97,655) (19,82,848) (283,291,71 ) FRANCHISE EXPENSE (461,197,75) 177,97,15 (283,29,691 ) 283, GROSS RECEIPTS TAX (241,982,394) (241,594,326) (149,698) (241,744,23) (238,371) FINANCIAL PLANNING SERVICES (425,263) 164,45 (26 1,218) 261,218 INDUSTRY ASSOCIATION DUES (549,113) 211,821 (337,293) 337,293 ECONOMIC DEVELOPMENT 5% (12,879) 4,968 (7,911) 7,911 AVIATION - EXPENSES 247,768 (3,218,114) 1,145,811 (1,824,535) 1,824,535 EXECUTIVE COMPENSATION (31,77,71) 12,231,249 (19.476,461) ,461 NOI FUEL REC RETAIL (4,398, ) (4,371,853,871 ) (12,212,493) (3,15,872) 76,153,168 (8,38.432) (4,391,444,5) (6, ) CONSERVATION RE COVERY (111,136,288) (12.499,595) (6,879,61 ) (8,18) 11,971,356 (12,618,495) (11,15,814) (1,3.474) CAPACI1Y RECOVERY (66,837,497) (51,63.711) (58,923,946) (52,916,314) (436,22) (943,336) 3,67,394 (611,179,934) ENVIRONMENTAL RECOVERY (152,7.117) (21, ) (18,175,84) (19.944) (49.736,629) 6,24,1 249,932 (83,38,984) (69,319,133) OTH ER CASE ADJUSTMENTS (1) 1,99,634 (767,887) 1,222,747 (1, ) STORM DEFICIENCY RECOVERY (89,262,638) (936,596) (6,315,572) (1,85.39) (72,57,27) (17,25,431) GAIN ON SALE LAND (PROPERTY) INTEREST TAX DEFICIENCIES 1,789,853 (69.436) 1,99,417 (1,99,417) INTEREST SYCHRONIZATION ,675 (8,3,148) 19,525,527 (19,525, 527) 249,932 (5,983, ) S (9,123,559) FPSC ADJUSTMENTS (6,73,489,287) (4, ,582) (227.43,335) (139,513,511 ) (7 18,744,81) 68,614,429 (91,424,581) FPSC ADJUSTED 4,311,399,991 16,71,394 1,393, 3~"816 ~~9,676 ~~73,152 ~5,58,318 ~~ 12, 678 _[1,561,919) (1,619,291) 3, 133,594,824 1,177,85,167 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 2, PAGE 2A OF 3) (167,849,292) (12,77) (64,624,151) (64,744,858) (12,94,434) PRO FORMA SYSTEM PER BOOKS ADJUSTED 4,143,75,699 16,71, ,35, ,559, ,1 52,445 27,884,167 21, (1,561,919) (1,619,291) 3,68,849,966 1,74,9.733 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY ,359 AND THE JURISDICTIONAL NOI BY 57,645,87 NOTE: (1) REFLECTS A PORTION OF THE DEPRECIATION RESERVE SURPL US ADJUSTMENT PROVIDED UNDER PARAGRAPH 7 OF THE 21 STIPULATION AND SETILEMENT AGR EEMENT. THE PROFORMA ADJUSTMENTS AR E NOT NECESSARILY ALL ~HE PROFORMA THAT WOULD BE MADE IN A BASE FILING.

12 YEAR END OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS SCHEDULE 3 PAGE 2A OF 3 REVENUES OPERATION & MAINTENANCE FUEL & NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME CURRENT DEFERRED (NET) INVESTMENT TAX CREDIT (NET) (GAIN)ILOSS ON DISPOSITION EXPENSES NET INCOME (A) WEATHER NORMALIZATION ADJUSTMENT (1) (167,649,292) (12,77) (64,624,151) (64,744,858) (12,94,434) PROFORMA ADJUSTMENTS (167,649,292) (12,77) (64,624,151) (64,744,858) (12,94.434) FOOTNOTES: (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESULT OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD

13 YEAR END OF RETURN SYSTEM ADJUSTMENTS SCHEDULE 3 PAGE 3 OF 3 BASE ADJUSTMENTS SYSTEM JURISDICTIONAL PLANT IN SERVICE: ENVIRONMENTAL 1,5,397,51 1,3,185,446 FUEL AND CAPACITY 49,835,3 48,821,824 AVIATION - PLANT LOAD CONTROL 38,664,47 38,664,47 ASSET RETIREMENT OBLIGATION 8,561,693 8,463,321 CAPITAL LEASES 58,149,24 57,48,965 1,25,67,7 1,183,616,27 ACCUMULATED PROVISION FOR DEPRECIATION: ENVIRONMENTAL (66,556,887) (65,276,179) ACCUM PROV DECOMMISSIONING S (2,922,675,55) (2,888,134,51) ASSET RETIREMENT OBLIGATION 39,23,93 38,78,178 ASSET RETIREMENT OBLIGATION DECOMMISSIONING 2,78,951,932 2,677,826,833 AVIATION - RESERVE FUEL AND CAPACITY (49,685,353) (48,675,121) OTHER CASE ADJUSTMENTS (1) 2,36,166 1,99,634 LOAD CONTROL (2,778,622) (2,778,622) CAPITAL LEASES 558, ,267 (38,918,23) (33,714,512) CONSTRUCTION WORK IN PROGRESS: CONSTRUCTION WORK IN PROGRESS 2,29,27,851 1,996,864,79 CWIP - ECRC PROJECTS 267,589,24 262,44,28 2,296,797,91 2,259,34,9 17 NUCLEAR FUEL: NUCLEAR FUEL IN PROCESS NUCLEAR FUEL CAPITAL LEASES WORKING CAPITAL: (1,75,66,17) (1,721,986,499) (SEE SCHEDULE 2, PAGE 3B OF 3) ADJUSTMENTS 1,442,826,571 1,417,219,933 NOTE (1) REFLECTS A PORTION OF THE DEPRECIATION RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER PARAGRAPH 7 OF THE 21 STIPULATION AND SETILEMENT AGREEMENT.

14 YEAR END OF RETURN SYSTEM ADJUSTMENTS INCOME STATEMENT SCHEDULE 3: PAGE 3A OF 3 REVENUES OPERATION & MAINTENANCE FUEL & NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME CURRENT DEFERRED (NET) INVESTMENT TAX CREDIT (NET) (GAIN)/LOSS ON DISPOSITION EXPENSES NET INCOME (A) SYSTEM PER BOOKS S 1,558,924,1 4,994,73,569 1,645,95, ,776,598 1,68,696, ,244,98 34,72,89 (1,599,15) (1,874,126) 9,277,116,112 1,281,87,988 FPSC ADJUSTMENTS FRANCHISE REVENUE FRANCHISE EXPENSE GROSS RECEIPTS TAX FINANCIAL PLANNING SERVICES INDUSTRY ASSOCIATION DUES ECONOMIC DEVELOPMENT 5% AVIATION - EXPENSES EXECUTIVE COMPENSATION NOI FUEL REC RETAIL CONSERVATION RECOVERY CAPACITY RECOVERY ENVIRONMENTAL RECOVERY OTHER CASE ADJUSTMENTS (1) STORM DEFICIENCY RECOVERY GAIN ON SALE LAND (PROPERTY) INTEREST TAX DEFICIENCIES INTEREST SYCHRONIZATION (473,374,558) (241,982,394) (4,491,81,765) (111,136,288) (66,862,629) (152,7,117) (89,262,638) (4,466,857,128) (511,514,837) (43,26) (555,496) (13,29) 25,648 (32,76,257) (12,465,959) (12,499,595) (6,67,289) (22,241,334) (951,734) 1,81,657 (3,255,519) (6,879,61) (52,916,314) (18,531,676) 2,36,166 (6,315,572) (12,175,194) (461,197,75) (241,594,326) (3,15,872) (8,18) (436,22) (19,944) (177,97,655) 177,97, 15 (149,698) 165, ,283 5,26 1,159,129 12,373,416 76,9,224 11,971,356 3,3,816 (49,435,874) (785,451) (1,799,199) (698,461) 27,857,177 (8,51,897) (12,618,495) 3,67,394 6,24,1 (8,49,) 254,836 (19,82,848) (283,29,691 ) (241,744,23) (284,254) (341,213) (8,3) (1,845,743) (19,72,841) (4,486,75,632) (11,15,814) (617,963,252) (83,859,892) 1,25,715 (72,66,55) 1,112,196 19,367,177 (283,291,71) 283,29,691 (238,371) 264, ,213 8,3 1,845,743 19,72,841 (5,735,133) (1,3,474) 11,1,624 (68,84,225) (1,25,715) (17,196,132) (1,112,196) (19,367,177) FPSC ADJUSTMENTS (6,167,129,389) (4,978,371,966) ( ,594) ( ) (718,744,81 ) 72,78.56 (91,735,898) 254,836 (6,85,62,623) (81, 58,766) FPSC ADJUSTED S 4,391,794,711 16,331,63 1,415,856, ,914,622 :)49,952, ,322, ,336, 19 (1,599,15) (1,619,291) 3,191,495,489 S 1.2,299,222 PRO FORMA ADJUSTMENTS (SEE SCHEDULE 3, PAGE 3B OF 3) PRO FORMA SYSTEM PER BOOKS ADJUSTED (167,649,292) 4.224,145, , ,856, ,914,622 (12,77) 349,831,474 (64,624,151 ) 278,698, ,336,19 (1,599,15) (1,619,291) (64,744,858) 3,126,75,631 (12,94,434) 1,97,394,788 (A) THE ADDITION OF EARNINGS FROM AFUDC WOULD INCREASE THE SYSTEM NOI BY s 58,964,359 NOTE' (1) REFLECTS A PORTION OF THE DEPRECIATION RESERVE SURPLUS ADJUSTMENT PROVIDED UNDER PARAGRAPH 7 OF THE 21 STIPULATION AND SETILEMENT AGREEMENT. THE PROFORMA ADJUSTMENTS ARE NOT NECESSARILY ALL THE PROFORMA THAT WOULD BE MADE IN A BASE FILING.

15 YEAR END OF RETURN INCOME STATEMENT DETAIL OF PRO FORMA ADJUSTMENTS SCHEDULE 3: PAGE 3B OF 3 OPERATION & MAINTENANCE FUEL& REVENUES NET INTERCHANGE OTHER DEPRECIATION & AMORTIZATION TAXES OTHER THAN INCOME CURRENT DEFERRED (NET) INVESTMENT TAX CREDIT (NEn (GAIN)/LOSS ON DISPOSITION EXPENSES NET INCOME (A) WEATHER NORMALIZATION ADJUSTMENT (1 ) (167,649,292) (12,77) (64,624,151) (64,744,858) (12,94,434) PROFORMA ADJUSTMENTS (167,649,292) (12,77) (64,624,151 ) (64,744,858) (12,94,434) FOOTNOTES: (1) ADJUSTMENT TO NORMALIZE BASE REVENUES AS A RESUL T OF ABNORMAL WEATHER CONDITIONS EXPERIENCED DURING THE PERIOD

16 CAPITAL STRUCTURE FPSC ADJUSTED BASIS SCHEDULE 4: PAGE 1 OF 2 LOW POINT MIDPOINT HIGH POINT AVERAGE SYSTEM PER BOOKS RETAIL PER BOOKS 2 ADJUSTMENTS PRO RATA SPECIFIC 3 4 ADJUSTED RETAIL 5 RATIO LONG TERM DEBT 5,613,241,432 5,489,846,973 (9,519,44) (531,32,164) 4,949,295, % 5.3% 1.54% 5.3% 1.54% 5.3% 1.54% SHORT TERM DEBT 458,83, ,69,951 (859,433) 446,831, % 1.19%.3% 1.19%.3% 1.19%.3% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 8,193,583,449 7,995,124,378 (15,348,245) () 7,979,776, % 9.% 4.21% 1.% 4.68% 11.% 5.15% CUSTOMER DEPOSITS 546,255, ,821,959 (1,47,815) () 544,774, % 5.53%.18% 5.53%.18% 5.53%.18% DEFERRED INCOME TAX 3,456,8,174 3,378,938,416 (6,21,61 ) (242,198,773) 3,13,718, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 121,844, ,47,813 (11,91) (113,693,11) 5,766,612.3% 7.58%.% 8.2%.% 8.82%.% ,893,489 (32,87,624) (886,924,47) 17,57,161,819 1.% 5.96% 6.43% 6.9% LOWPOINT MIDPOINT HIGH POINT YEAR END SYSTEM PER BOOKS RETAIL PER BOOKS 2 PRO RATA 3 ADJUSTMENTS SPECIFIC 4 ADJUSTED RETAIL 5 RATIO LONG TERM DEBT 5, ,12 5,754,5,27 (124,113,838) (571.58,78) 5,58,382, % 5.29% 1.54% 5.29% 1.54% 5.29% 1.54% SHORT TERM DEBT 455,448, ,896,799 (1,654,681 ) 434,242, %.27%.1%.27%.1%.27%.1% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 8,49,649,522 8,214,89,126 (196,733,657) 8,18,75, % 9.% 4.16% 1.% 4.63% 11.% 5.9% CUSTOMER DEPOSITS 552,67,26 552,241,48 (13,225,442) () 539,16, % 6.22%.19% 6.22%.19% 6.22%.19% DEFERRED INCOME TAX 3,681,288,59 3,61,652,869 (8,454,418) (242,198,773) 3,278,999, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 187,787,98 184,182,633 (143,592) (178, ) 5,852,218.3% 7.56%.% 8.18%.% 8.79%.% 19,164, ,751,788,114 (425,325,628) (991,894,35) 17,334,568,181 1.% 5.91% 6.37% 6.83% NOTE (1) INVESTMENT TAX CREDITS S ARE BASED ON THE AVERAGE OF LONG TERM DEBT, PREFERRED STOCK AND COMMON EQUITY. (2) COLUMNS MAY NOT FOOT DUE TO ROUNDING.

17 CAPITAL STRUCTURE PROFORMA ADJUSTED BASIS APRIL, 211 SCHEDULE 4: PAGE 2 OF 2 LOW POINT MIDPOINT HIGH POINT AVERAGE FPSC ADJUSTED PRO-FORMA ADJUSTMENTS 2 PRO-FORMA ADJUSTED 3 RATIO LONG TERM DEBT 4,949,295,369 4,949,295, % 5.3% 1.54% 5.3% 1.54% 5.3% 1.54% SHORT TERM DEBT 446,831,518 () 446,831, % 1.19%.3% 1.19%.3% 1.19%.3% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 7,979,776,133 7,979,776, % 9.% 4.21% 1.% 4.68% 11.% 5.15% CUSTOMER DEPOSITS 544,774,145 () 544,774, % 5.53%.18% 5.53%.18% 5.53%.18% DEFERRED INCOME TAX 3,13,718,42 () 3,13,718, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 5,766,612 () 5,766,612.3% 7.58%.% 8.2%.% 8.82%.% 17,57,161,819 () 17,57,161,819 1.% 5.96% 6.43% 6.9% LOWPOINT MIDPOINT HIGH POINT YEAR END FPSC ADJUSTED 1 PRO-FORMA ADJUSTMENTS 2 PRO-FORMA ADJUSTED 3 RATIO LONG TERM DEBT 5,58,382,661 5,58,382, % 5.29% 1.54% 5.29% 1.54% 5.29% 1.54% SHORT TERM DEBT 434,242,117 () 434,242, %.27%.1%.27%.1%.27%.1% PREFERRED STOCK.%.%.%.%.%.%.% COMMON EQUITY 8,18,75,469 () 8,18,75, % 9.% 4.16% 1.% 4.63% 11.% 5.9% CUSTOMER DEPOSITS 539,16,38 () 539,16, % 6.22%.19% 6.22%.19% 6.22%.19% DEFERRED INCOME TAX 3,278,999,678 () 3,278,999, %.%.%.%.%.%.% INVESTMENT TAX CREDITS (1) 5,852,218 5,852,218.3% 7.56%.% 8.18%.% 8,79%.% 17,334,568,181 () 17,334,568,181 1.% 5.91% 6.37% 6.83% NOTE: (1) INVESTMENT TAX CREDITS S ARE BASED ON THE AVERAGE OF LONG TERM DEBT, PREFERRED STOCK AND COMMON EQUITY. (2) COLUMNS MAY NOT FOOT DUE TO ROUNDING.

18 APRIL, 211 SCHEDULE 5: PAGE 1 OF 2 A. TIMES INTEREST EARNED WITH AFUDC D. PERCENT INTERNALLY GENER.ATED FUNDS EARNINGS BEFORE INTEREST CHARGES ALLOWANCE FOR BORROWED FUNDS DURING CONSTRUCTION INTEREST CHARGES EXCLUDING DEBT AFUDC TIMES INTEREST EARNED WITH AFUDC 1,33,489,18 16,738,15 584,175,679 1,931,42,82 38,73, NET INCOME PREFERRED DIVIDENDS DECLARED COMMON DIVIDENDS AFUDC (DEBT & OTHER) DEPRECIATION AND AMORTIZATION EXPENSE DEFERRED INVESTMENT TAX CREDITS OTHER SOURCE/USES OF FUNDS INTERNALLY GENED FUNDS 966,523,844 (668,849,818) (58,964,359) 996,776, ,81,255 (1,599,15) (213,22,443) 1,37,674,926 CONSTRUCTION EXPENDITURES 2,187,293,116 B. TIMES INTEREST EARNED WITHOUT AFUDC PERCENT INTERNALLY GENED FUNDS 59.79% EARNINGS BEFORE INTEREST CHARGES ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION INTEREST CHARGES EXCLUDING DEBT AFUDC TIMES INTEREST EARNED WITHOUT AFUDC 1,33,489,18 (42,226,344) 584,175,679 1,872,438,443 38,73, E. LONG TERM DEBT AS A PERCENT OF INVESTOR CAPITAL F. SHORT TERM DEBT AS A PERCENT OF INVESTOR CAPITAL C. PERCENT AFUDC TO NET INCOME AVAILABLE FOR COMMON STOCKHOLDERS ALLOWANCE FOR BORROWED FUNDS DURING CONSTRUCTION 16,738,15 X (1 - INCOME_ TAX_).6143 SUB 1,281,326 ALLOWANCE FOR EQUITY FUNDS USED DURING CONSTRUCTION 42,226,344 52,57,669 NET INCOME AVAILABLE FOR COMMON 966,523,844 AFUDC AS PER CENT OF NET INCOME 5.43% FOOTNOTES CLAUSE OVER/UNDER RECOVERY (211,148,316) GAINS ON DISPOSITION OF PROPERTY (1,874,126) LONG TERM DEBT RETIREMENTS & REDEMPTIONS INCREASEJDECREASE IN DECOMMISSIONING FUNDS (213,22,443) - INCLUDES EXPENDITURES FOR NUCLEAR FUELS OF: AVERAGE RETAIL AMOUNTS JURIS ADJUSTED LONG TERM DEBT JURIS ADJUSTED SHORT TERM DEBT JURIS ADJUSTED PREFERRED STOCK JURIS ADJUSTED COMMON STOCK LTD TO INVESTOR FUNDS S1 TO INVESTOR FUNDS G. FPSC ADJUSTED AVERAGE JURISDICTIONAL RETURN ON COMMON EQUITY FPSC OF RETURN LESS: RECONCILED AVG. RETAIL S FOR LONG TERM DEBT SHORT TERM DEBT PREFERRED STOCK CUSTOMER DEPOSITS TAX CREDITS - WTD SUB DIVIDED BY COMMON EQUITY RATIO JURISDICTIONAL RETURN ON COMMON EQUITY 4,949,295, ,831,518 7,979,776,133 13,375,93,2 37% 3.34% 6.9% 1.54%.3%.%.18%.% 1.75% 5.15% 46.78% 11.%

19 FINANCIAL INTEGRITY INDICATORS SCHEDULE 5 PAGE 2 OF 2 H. PROFORMA ADJUSTED AVERAGE JURISDICTIONAL RETURN ON COMMON EQUITY PRO FORMA OF RETURN 6.29% LESS AVERAGE RETAIL S FOR : LONG TERM DEBT 1.54 % SHORT TERM DEBT.3% PREFERRED STOCK.% CUSTOMER DEPOSITS.18% TAX CREDITS - WTD.% SUB 1.75% PRO FORMA ROR LESS NON EQUITY 4.54 % PRO FORMA COMMON EQUITY RATIO 46.78% PRO FORMA RETURN ON COMMON EQUITY 9.71 %