FORM 10-Q
(Mark One) |
ý | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d) OFTHE SECURITIES EXCHANGE ACT OF 1934 |
For the quarterly period ended March 31, 2005 | |
OR | |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OFTHE SECURITIES EXCHANGE ACT OF 1934 |
For the transition period from to |
For the transition period from __________ to __________
Oglethorpe Power Corporation
Georgia (State or other jurisdiction organization)incorporation or | 58-1211925 (I.R.S. | |
Post Office Box 1349 | ||
2100 East Exchange Place | ||
Tucker, Georgia | ||
(Address of principal executive offices) | 30085-1349 (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.Yesxý Noo
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 o No Noý
x
Page No. | | ||||||||
PART I | |||||||||
Item 1. | Financial Statements | ||||||||
Condensed Balance Sheets as of (Unaudited) and December 31, | 3 | ||||||||
Condensed Statements of Revenues and Expenses (Unaudited) for the Three Months ended March 31, 2005 and | 5 | ||||||||
Condensed Statements of Patronage Capital and Membership Fees and Accumulated Other Comprehensive Margin (Unaudited) for the March 31, 2005 and 2004 | 6 | ||||||||
Condensed Statements of Cash Flows (Unaudited) For the | 7 | ||||||||
Notes to Condensed Financial Statements For the | 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 | 16 | |||||||
Item 4. | Controls and Procedures | 16 | |||||||
PART II — OTHER INFORMATION | |||||||||
Item | Legal Proceedings | 17 | |||||||
Item 6. | Exhibits | 17 | |||||||
18 |
(dollars in thousands) | |||||||
2004 | 2003 | ||||||
Assets | (Unaudited) | ||||||
Electric plant: | |||||||
In service | $ | 5,782,633 | $ | 5,755,553 | |||
Less: Accumulated provision for depreciation | (2,222,497 | ) | (2,107,274 | ) | |||
3,560,136 | 3,648,279 | ||||||
Nuclear fuel, at amortized cost | 77,310 | 90,283 | |||||
Construction work in progress | 22,019 | 26,212 | |||||
3,659,465 | 3,764,774 | ||||||
Investments and funds: | |||||||
Decommissioning fund, at market | 186,171 | 180,448 | |||||
Deposit on Rocky Mountain transactions, at cost | 81,658 | 77,684 | |||||
Bond, reserve and construction funds, at market | 8,011 | 21,629 | |||||
Investment in associated organizations, at cost | 31,395 | 29,374 | |||||
Other, at market | 14,859 | 1,084 | |||||
322,094 | 310,219 | ||||||
Current assets: | |||||||
Cash and cash equivalents, at cost | 152,026 | 226,830 | |||||
Restricted short-term investments, at market | 80,113 | - | |||||
Other short-term investments, at market | 2,845 | 96,213 | |||||
Receivables | 120,354 | 112,248 | |||||
Inventories, at average cost | 101,741 | 105,338 | |||||
Prepayments and other current assets | 5,101 | 4,959 | |||||
462,180 | 545,588 | ||||||
Deferred charges: | |||||||
Premium and loss on reacquired debt, being amortized | 138,246 | 139,741 | |||||
Deferred amortization of capital leases | 110,387 | 110,626 | |||||
Deferred debt expense, being amortized | 22,318 | 23,953 | |||||
Deferred nuclear outage costs, being amortized | 14,535 | 14,764 | |||||
Deferred asset retirement obligations costs, being amortized | 20,544 | 14,821 | |||||
Other | 3,717 | 5,199 | |||||
309,747 | 309,104 | ||||||
$ | 4,753,486 | $ | 4,929,685 |
Oglethorpe Power Corporation
Condensed Balance Sheets
March 31, 2005 and December 31, 2004
(dollars in thousands) | ||||||||
2005 | 2004 | |||||||
(Unaudited) | ||||||||
Assets | ||||||||
Electric plant: | ||||||||
In service | $ | 5,782,434 | $ | 5,784,529 | ||||
Less: Accumulated provision for depreciation | (2,270,206 | ) | (2,237,192 | ) | ||||
3,512,228 | 3,547,337 | |||||||
Nuclear fuel, at amortized cost | 88,241 | 87,941 | ||||||
Construction work in progress | 25,272 | 22,830 | ||||||
3,625,741 | 3,658,108 | |||||||
Investments and funds: | ||||||||
Decommissioning fund, at market | 194,203 | 196,181 | ||||||
Deposit on Rocky Mountain transactions, at cost | 84,404 | 83,012 | ||||||
Bond, reserve and construction funds, at market | 7,086 | 8,051 | ||||||
Investment in associated organizations, at cost | 33,867 | 33,959 | ||||||
Long-term investments, at market | 46,512 | 68,507 | ||||||
Other, at cost | 1,084 | 1,084 | ||||||
367,156 | 390,794 | |||||||
Current assets: | ||||||||
Cash and cash equivalents, at cost | 99,047 | 133,669 | ||||||
Restricted cash and cash equivalents, at cost | — | 11,781 | ||||||
Restricted short-term investments, at cost | 239,854 | 81,104 | ||||||
Other short-term investments, at market | 6,593 | 6,663 | ||||||
Receivables | 125,033 | 129,221 | ||||||
Inventories, at average cost | 96,450 | 100,927 | ||||||
Prepayments and other current assets | 2,351 | 4,118 | ||||||
569,328 | 467,483 | |||||||
Deferred charges: | ||||||||
Premium and loss on reacquired debt, being amortized | 131,726 | 134,575 | ||||||
Deferred amortization of capital leases | 110,002 | 110,422 | ||||||
Deferred debt expense, being amortized | 24,049 | 23,026 | ||||||
Deferred nuclear outage costs, being amortized | 18,744 | 10,880 | ||||||
Deferred asset retirement obligations costs, being amortized | 20,536 | 14,664 | ||||||
Other | 2,938 | 3,226 | ||||||
307,995 | 296,793 | |||||||
$ | 4,870,220 | $ | 4,813,178 | |||||
The accompanying notes are an integral part of these condensed financial statements.
Oglethorpe Power CorporationOglethorpe Power CorporationCondensed Balance SheetsSeptember 30, 2004 and December 31, 2003
(dollars in thousands) | |||||||
2004 | 2003 | ||||||
Equity and Liabilities | (Unaudited) | ||||||
Capitalization: | |||||||
Patronage capital and membership fees | $ | 464,206 | $ | 444,418 | |||
Accumulated other comprehensive loss | (47,765 | ) | (49,814 | ) | |||
416,441 | 394,604 | ||||||
Long-term debt | 3,202,884 | 3,315,128 | |||||
Obligation under capital leases | 328,839 | 342,232 | |||||
Obligation under Rocky Mountain transactions | 81,658 | 77,684 | |||||
4,029,822 | 4,129,648 | ||||||
Current liabilities: | |||||||
Long-term debt and capital leases due within one year | 156,972 | 237,522 | |||||
Accounts payable | 44,373 | 63,559 | |||||
Accrued interest | 15,873 | 7,158 | |||||
Accrued and withheld taxes | 24,253 | 19,957 | |||||
Other current liabilities | 10,221 | 9,109 | |||||
251,692 | 337,305 | ||||||
Deferred credits and other liabilities: | |||||||
Gain on sale of plant, being amortized | 44,053 | 45,909 | |||||
Net benefit of Rocky Mountain transactions, being amortized | 70,874 | 73,263 | |||||
Asset retirement obligations | 244,510 | 233,155 | |||||
Accumulated retirement costs for other obligations | 35,095 | 35,349 | |||||
Interest rate swap arrangements | 47,734 | 49,916 | |||||
Other | 29,706 | 25,140 | |||||
471,972 | 462,732 | ||||||
$ | 4,753,486 | $ | 4,929,685 |
(dollars in thousands) | ||||||||
2005 | 2004 | |||||||
(Unaudited) | ||||||||
Equity and Liabilities | ||||||||
Capitalization: | ||||||||
Patronage capital and membership fees | $ | 472,881 | $ | 461,655 | ||||
Accumulated other comprehensive loss | (49,326 | ) | (46,896 | ) | ||||
423,555 | 414,759 | |||||||
Long-term debt | 3,131,397 | 3,180,915 | ||||||
Obligation under capital leases | 319,507 | 324,326 | ||||||
Obligation under Rocky Mountain transactions | 84,404 | 83,012 | ||||||
3,958,863 | 4,003,012 | |||||||
Current liabilities: | ||||||||
Long-term debt and capital leases due within one year | 171,383 | 190,835 | ||||||
Accounts payable | 43,155 | 67,149 | ||||||
Accrued interest | 11,197 | 40,176 | ||||||
Accrued and withheld taxes | 16,245 | 9,945 | ||||||
Members' advances | 158,672 | — | ||||||
Other current liabilities | 12,853 | 11,583 | ||||||
413,505 | 319,688 | |||||||
Deferred credits and other liabilities: | ||||||||
Gain on sale of plant, being amortized | 42,816 | 43,434 | ||||||
Net benefit of Rocky Mountain transactions, being amortized | 69,281 | 70,078 | ||||||
Asset retirement obligations | 252,326 | 248,295 | ||||||
Accumulated retirement costs for other obligations | 55,309 | 54,272 | ||||||
Interest rate swap arrangements | 47,498 | 45,254 | ||||||
Other | 30,622 | 29,145 | ||||||
497,852 | 490,478 | |||||||
$ | 4,870,220 | $ | 4,813,178 | |||||
The accompanying notes are an integral part of these condensed financial statements.
Oglethorpe Power Corporation The accompanying notes are an integral part of these condensed financial statements.Oglethorpe Power CorporationCondensed Statements of Revenues and Expenses (Unaudited)For the Three and Nine Months Ended September 30, 2004 and 2003 (dollars in thousands) Three Months Nine Months 2003 2003 Sales to Members $ 343,797 $ 890,392 Sales to non-Members 8,488 27,995 352,285 918,387 Fuel 81,151 184,684 Production 60,633 180,539 Purchased power 113,764 276,739 Depreciation and amortization 37,756 106,195 Income taxes - - - Accretion 1,703 3,269 295,007 751,426 57,278 166,961 Investment income 4,733 15,417 Amortization of deferred gains 619 1,856 Amortization of net benefit of sale of income tax benefits 796 2,389 Allowance for equity funds used during construction 82 313 Other 564 1,728 6,794 21,703 Interest on long-term debt and capital leases 53,677 152,619 Other interest 1,075 4,646 Allowance for debt funds used during construction (534 ) (2,090 ) Amortization of debt discount and expense 3,642 10,867 57,860 166,042 $ 6,212 $ 22,622
For the Three Months Ended March 31, 2005 and 2004 (dollars in thousands)
Three months
2005 2004 Operating revenues: Sales to Members $ 287,893 $ 296,687 Sales to non-Members 9,391 8,157 Total operating revenues 297,284 304,844
Operating expenses:
Fuel 66,348 57,861 Production 62,717 58,322 Purchased power 71,361 87,697 Depreciation and amortization 38,354 38,133 Accretion 3,108 6,787 Total operating expenses 241,888 248,800 Operating margin 55,396 56,044
Other income (expense):
Investment income 8,122 9,958 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 65 84 Other 825 735 Total other income 10,427 12,192
Interest charges:
Interest on long-term debt and capital leases 50,126 51,276 Other interest 1,015 682 Allowance for debt funds used during construction (482 ) (612 ) Amortization of debt discount and expense 3,938 4,172 Net interest charges 54,597 55,518 Net margin $ 11,226 $ 12,718 5
(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 | 22,622 | 22,622 | ||||||||
Unrealized gain on interest rate swap arrangements | 4,246 | 4,246 | ||||||||
Unrealized loss on available-for-sale securities | (1,889 | ) | (1,889 | ) | ||||||
Unrealized loss on financial gas hedges | (136 | ) | (136 | ) | ||||||
Total comprehensive margin | 24,843 | |||||||||
Balance at September 30, 2003 | $ | 450,191 | $ | (53,530 | ) | $ | 396,661 | |||
Balance at December 31, 2003 | $ | 444,418 | $ | (49,814 | ) | $ | 394,604 | |||
Components of comprehensive margin: | ||||||||||
Net margin | 19,788 | 19,788 | ||||||||
Unrealized gain on interest rate swap arrangements | 2,182 | 2,182 | ||||||||
Unrealized loss on available-for-sale securities | (658 | ) | (658 | ) | ||||||
Unrealized gain on financial gas hedges | 525 | 525 | ||||||||
Total comprehensive margin | 21,837 | |||||||||
Balance at September 30, 2004 | $ | 464,206 | $ | (47,765 | ) | $ | 416,441 |
Oglethorpe Power Corporation
Condensed Statements of Patronage Capital and Membership Fees
and Accumulated Other Comprehensive Margin (Unaudited)
For the Three Months Ended March 31, 2005 and 2004
(dollars in thousands) | |||||||||||
Patronage Capital and Membership Fees | Accumulated Other Comprehensive Margin (Loss) | Total | |||||||||
---|---|---|---|---|---|---|---|---|---|---|---|
Balance at December 31, 2003 | $ | 444,418 | $ | (49,814 | ) | $ | 394,604 | ||||
Components of comprehensive margin: | |||||||||||
Net margin | 12,718 | 12,718 | |||||||||
Unrealized loss on interest rate swap arrangements | (5,142 | ) | (5,142 | ) | |||||||
Unrealized gain on available-for-sale securities | 237 | 237 | |||||||||
Unrealized gain on financial gas hedges | 1,523 | 1,523 | |||||||||
Total comprehensive margin | 9,336 | ||||||||||
Balance at March 31, 2004 | $ | 457,136 | $ | (53,196 | ) | $ | 403,940 | ||||
Balance at December 31, 2004 | $ | 461,655 | $ | (46,896 | ) | $ | 414,759 | ||||
Components of comprehensive margin: | |||||||||||
Net margin | 11,226 | 11,226 | |||||||||
Unrealized loss on interest rate swap arrangements | (2,244 | ) | (2,244 | ) | |||||||
Unrealized loss on available-for-sale securities | (322 | ) | (322 | ) | |||||||
Unrealized gain on financial gas hedges | 136 | 136 | |||||||||
Total comprehensive margin | 8,796 | ||||||||||
Balance at March 31, 2005 | $ | 472,881 | $ | (49,326 | ) | $ | 423,555 | ||||
The accompanying notes are an integral part of these condensed financial statements.
(dollars in thousands) | |||||||
2004 | 2003 | ||||||
Cash flows from operating activities: | |||||||
Net margin | $ | 19,788 | $ | 22,622 | |||
Adjustments to reconcile net margin to net cashprovided by operating activities: | |||||||
Depreciation and amortization, including nuclear fuel | 171,041 | 166,062 | |||||
Net accretion cost | 12,390 | 3,269 | |||||
Allowance for equity funds used during construction | (156 | ) | (313 | ) | |||
Amortization of deferred gains | (1,856 | ) | (1,856 | ) | |||
Amortization of net benefit of sale of income tax benefits | (2,389 | ) | (2,389 | ) | |||
Deferred nuclear outage costs | (13,029 | ) | (10,371 | ) | |||
Other | 67 | (298 | ) | ||||
Change in operating assets and liabilities: | |||||||
Receivables | (8,106 | ) | (36,626 | ) | |||
Notes receivable | - | 597 | |||||
Inventories | 3,597 | 1,872 | |||||
Prepayments and other current assets | 381 | (1,082 | ) | ||||
Accounts payable | (19,186 | ) | (9,680 | ) | |||
Accrued interest | 8,715 | 12,005 | |||||
Accrued and withheld taxes | 4,296 | 19,045 | |||||
Other current liabilities | 1,112 | (4,949 | ) | ||||
Deferred start-up costs | - | 1,897 | |||||
Total adjustments | 156,877 | 137,183 | |||||
Net cash provided by operating activities | 176,665 | 159,805 | |||||
Cash flows from investing activities: | |||||||
Property additions | (37,915 | ) | (120,474 | ) | |||
Net proceeds from bond, reserve and construction funds | 13,563 | 4,695 | |||||
Net cash received from merger of Talbot EMCand Chattahoochee EMC into Oglethorpe | - | 18,273 | |||||
Increase in investment in associated organizations | (2,020 | ) | (255 | ) | |||
Decrease (increase) in restricted and other short-term investments | 13,575 | (1,773 | ) | ||||
Increase in other long-term investments | (14,699 | ) | - | ||||
Increase in decommissioning fund | (12,910 | ) | (4,332 | ) | |||
Proceeds from sale of railcars | - | 21,799 | |||||
Net cash used in investing activities | (40,406 | ) | (82,067 | ) | |||
Cash flows from financing activities: | |||||||
Long-term debt proceeds, net | - | 550,928 | |||||
Long-term debt payments | (206,187 | ) | (362,148 | ) | |||
Issuance costs and loss on reacquired debt | (9,375 | ) | (5,120 | ) | |||
Decrease in notes payable | - | (260,638 | ) | ||||
Increase in notes receivable under interim financing agreement | - | (11,141 | ) | ||||
Increase in deferred credit for major overhaul | 4,499 | 1,751 | |||||
Net cash used in financing activities | (211,063 | ) | (86,368 | ) | |||
Net decrease in cash and cash equivalents | (74,804 | ) | (8,630 | ) | |||
Cash and cash equivalents at beginning of period | 226,830 | 151,311 | |||||
Cash and cash equivalents at end of period | $ | 152,026 | $ | 142,681 | |||
Cash paid for: | |||||||
Interest (net of amounts capitalized) | $ | 146,664 | $ | 143,170 | |||
Income taxes | - | - |
Oglethorpe Power Corporation
Condensed Statements of Cash Flows (Unaudited)
For the Three Months Ended March 31, 2005 and 2004
(dollars in thousands) | ||||||||||
2005 | 2004 | |||||||||
Cash flows from operating activities: | ||||||||||
Net margin | $ | 11,226 | $ | 12,718 | ||||||
Adjustments to reconcile net margin to net cash provided by operating activities: | ||||||||||
Depreciation and amortization, including nuclear fuel | 55,688 | 57,042 | ||||||||
Net accretion cost | 3,108 | 6,787 | ||||||||
Allowance for equity funds used during construction | (65 | ) | (84 | ) | ||||||
Amortization of deferred gains | (619 | ) | (619 | ) | ||||||
Amortization of net benefit of sale of income tax benefits | (796 | ) | (796 | ) | ||||||
Deferred nuclear outage costs | (12,619 | ) | (7,296 | ) | ||||||
Other | 198 | (1,072 | ) | |||||||
Change in operating assets and liabilities: | ||||||||||
Receivables | 4,188 | 9,777 | ||||||||
Inventories | 4,477 | (1,290 | ) | |||||||
Prepayments and other current assets | 1,767 | 1,995 | ||||||||
Accounts payable | (23,994 | ) | (28,776 | ) | ||||||
Accrued interest | (28,979 | ) | 3,773 | |||||||
Accrued and withheld taxes | 6,300 | (6,211 | ) | |||||||
Members' advances | 158,672 | — | ||||||||
Other current liabilities | 1,405 | (2,319 | ) | |||||||
Total adjustments | 168,731 | 30,911 | ||||||||
Net cash provided by operating activities | 179,957 | 43,629 | ||||||||
Cash flows from investing activities: | ||||||||||
Property additions | (12,675 | ) | (13,077 | ) | ||||||
Net proceeds from bond, reserve and construction funds | 878 | 13,618 | ||||||||
Decrease (increase) in investment in associated organizations | 503 | �� | (1,187 | ) | ||||||
Decrease in restricted cash and cash equivalents | 11,781 | 133,343 | ||||||||
Increase in restricted and other short-term investments | (158,750 | ) | (926 | ) | ||||||
Decrease (increase) in other long-term investments | 21,830 | (28,005 | ) | |||||||
Increase in decommissioning fund | (3,115 | ) | (6,960 | ) | ||||||
Net cash (used in) provided by investing activities | (139,548 | ) | 96,806 | |||||||
Cash flows from financing activities: | ||||||||||
Long-term debt proceeds | — | — | ||||||||
Long-term debt payments | (73,789 | ) | (146,520 | ) | ||||||
Issuance costs and loss on reacquired debt | (2,111 | ) | (9,092 | ) | ||||||
Increase in deferred credit for major overhaul | 870 | 1,577 | ||||||||
Net cash used in financing activities | (75,030 | ) | (154,035 | ) | ||||||
Net decrease in cash and cash equivalents | (34,621 | ) | (13,600 | ) | ||||||
Cash and cash equivalents at beginning of period | 133,668 | 66,485 | ||||||||
Cash and cash equivalents at end of period | $ | 99,047 | $ | 52,885 | ||||||
Cash paid for: | ||||||||||
Interest (net of amounts capitalized) | $ | 79,638 | $ | 47,573 | ||||||
Income taxes | — | — |
The accompanying notes are an integral part of these condensed financial statements.
Results of Operations For the Three Months Ended March 31, 2005 and Net Margin Oglethorpe's net margin for the three months budget. Operating Revenues Oglethorpe's operating revenues fluctuate from period to period based on factors including weather and other seasonal factors, load growth in the service territories of Oglethorpe's Total revenues from sales to the Members for the three-month 2004. The components of Member revenues for the three months ended March 31, 2005 and
Capacity revenues for the 2004. Energy revenues were Operating Expenses" below.Sales to non-Members were primarily from capacity and energy sales to 2004. Operating Expenses Operating expenses for the three-month For the three-month Purchased
Purchased power energy costs for the three-month at a very favorable cost thus the termination of the LEM agreement has had the effect of increasing the average purchased power energy costs. Accretion expense 2005. Other Income Investment income Capital Requirements and Liquidity and Sources of Capital Environmental Matters
Liquidity As of Oglethorpe also had $37 million invested in auction rate securities at March 31, 2005. These securities have maturities in excess of one year and Oglethorpe has in place a This facility matures in September 2007. Oglethorpe also has in place two $50 million committed lines of credit, one with National Rural Utilities Cooperative Finance Corporation that matures In addition to unrestricted available liquidity, Oglethorpe had $240 million in restricted short-term investments at March 31, 2005. This amount relates to a Rural Utilities Service (RUS) Cushion of Credit Account established with the U.S. Treasury in mid-2004 that earns interest at a guaranteed rate of 5% per annum, which is more than Oglethorpe is currently earning on Oglethorpe anticipates that some Members will continue to prepay their power bills during the remainder of 2005 and that those funds will be deposited in the Cushion of Credit Account. Based on Oglethorpe's view of interest rates and its scheduled RUS/FFB debt service, it is currently estimated that at the end of 2005 the amount on deposit will equal $81 million, which is approximately four months of RUS/FFB debt service. Although restricted, these deposits provide a source of short-term liquidity.
Oglethorpe submitted a loan application totaling 2004, and a portion of the normal additions and replacements to generation facilities expected to be incurred in 2005 through 2012. Oglethorpe anticipates that RUS will take action on this loan application by mid-year 2005. In the second half of 2005, Oglethorpe anticipates submitting another loan application to RUS totaling approximately $160 million to fund capital expenditures made in 2004 and forecasted to be made in 2005 through If approved, both of these loans would be funded through the FFB and guaranteed by the RUS and the debt would be secured under General Total assets and total equity plus liabilities as of equivalents, and long-term investments. Assets Property additions for the The Long-term investments primarily represent auction rate securities. As a result of their favorable interest rates, Oglethorpe invests in auction rate securities on a short-term basis by utilizing the these investments. As of Restricted cash and cash equivalents at December 31, 2004 represent the proceeds from the December 2004 PCB refinancing, which were on deposit with a trustee. The proceeds were subsequently used in the first quarter of 2005 for payment of the refinanced PCB principal that matured in January 2005. Restricted short-term investments represent funds deposited into a RUS Cushion of Credit Account with the U.S. Treasury. The 42.9% decrease in prepayments and other current assets was predominately due to the amortization of prepaid insurance balances. Deferred nuclear outage costs increased $7.9 million, or 72.3%, as a result of the deferral of refueling outage costs incurred for Plant Hatch Unit No. 2 and Plant Vogtle Unit No. 1 during the first quarter of 2005. Nuclear outage costs incurred during a refueling outage are deferred and amortized over an 18-month or 24-month operating cycle, depending upon the plant. Deferred asset retirement obligation costs increased Equity and Liabilities Long-term debt and capital leases due within one year decreased by 3, 2005. Accounts payable decreased The Accrued and withheld taxes increased Members' advances represent amounts received from the Members for power bill prepayment program, see "Liquidity" above. New and Proposed Accounting Pronouncements For a discussion of New and Proposed Accounting Pronouncements see Note B and C of Notes to Condensed Financial Statements. Forward-Looking Statements and Associated Risks This Quarterly Report on Form 10-Q contains forward-looking statements, including statements regarding, among other items, (i) anticipated transactions by Oglethorpe and (ii) Oglethorpe's future capital requirements and sources of capital. These forward-looking statements are based largely on Oglethorpe's current expectations and are subject to a number of risks and uncertainties, some of which are beyond Oglethorpe's control. For factors that could cause actual results to differ materially from those anticipated by these forward-looking statements, see "BUSINESS-Competition" in Item 1 of Oglethorpe's Oglethorpe's market risks have not changed materially from the market risks reported in Oglethorpe's Item 4. Controls and Procedures As of No change in Oglethorpe's internal control over financial reporting occurred during the most recent fiscal quarter that has materially affected, or are reasonably likely to materially affect, Environmental Matters For information about environmental matters that could have an effect on Oglethorpe, see Note (E) to Notes to Condensed Financial Statements. Item 6. Exhibits
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
OGLETHORPE POWER CORPORATION INDEX TO QUARTERLY REPORT ON FORM 10-Q FOR THE QUARTER ENDED MARCH 31, 2005
Item 3. Quantitative and Qualitative Disclosures About Market Risk Item 4. Controls and Procedures |