Oglethorpe Power Corp Application

APPENDIX D - DEPRECIATION RATES - EXISTING PLANTS ONLY ............ 32
APPENDIX E - OPERATIONS AND MAINTENANCE ......................................... 34
APPENDIX F - INSURANCE & PROPERTY TAX.......................... .............. 38
APPENDIX G - UNIT FORCED OUTAGE RATES.....................................42
APPENDIX H - SCHEDULED MAINTENANCE OUTAGES ...........................
43
APPENDIX
Page
/ DOE Re-submittal
DOE Loan
Guarantee Application
/ DOE Re-submittal
ex ense and
includes Interest During Construction IDC) and Allowance For Funds Used
Du n
in ( UJDC).
December
2008
Long-Range
Guarantee Application / DOE Re-submittal
ro ertv
December 2008

follows:

to collect
advance payments
Talbot and Do le
December 2008 Confidential
Trade Secret Information - Subject to Restricted Procedures Page 9 of 75
Long-Range Financial Forecast Assumptions Document /
DOE Loan
/ DOE Re-submittal
Document / DOE Loan Guarantee Application / DOE Re-submittal

Long-Range Financial Forecast
Long-Range Financial Forecast Assumptions Document / DOE Loan Guarantee Application / DOE Re-submittal

DO E Re-submittal
Long-Range Financial Forecast Assumptions Document / DO E Loan Guarantee Application / DO E Re-submittal

Long-Range Financial Forecast A ssumptions Document / DOE Loan Guarantee Application / DOE Re-submittal

18 of 75

Loan Guarantee Application / DOE Re-submittal

Long-Range Financial Forecast A ssumption Document / DOE Loan G uarantee Application
/ DOE Re-submittal

The avera
38 EMCs.
The SEPA rates remain constant over the study period. They are consistent with the rates proposed by
SEPA to take effect in October of 2007.
Energy
Capacity
Document / DOE

Chattahoochee
Page 32 of 75
Application / DOE Re-submittal
values do not include property tax and
insurance except for
Vogtle 3 & 4.

Long-Range
Financial Forecast Assumptions Document / DOE Loan Guarantee Application / DO E
Re-submittal
3 & 4 is included in the Fixed O&M total)
INSURANCE
i
Hatch
Rocky Mtn.
m m
m
Chattahoochee
N
M
U
o-I I I
I
BioMass
Corporate
Total Insurance
Long-Range Financial
I I
Page 39 of 75
Long-Range

included
PROPERTY TAX -
Vogtle3,4 I I I I I I I I I
Rocky
Mtn.
Talbot
U
U
U
--
I
SI
I

I
2008 Confidential Trade Secret Information - Subject to Restricted Procedures Page 42 of 75
Long-Range Financial Forecast Assumptions Document / DOE Loan
Loan
Information - Subject
Long-Range
Financial

Page 50 of 75
Page 52
of 75

Capacity
Factor
/ DOE Re-submittal
Net Maximum Capacity
per unit (MW):
Net Dependable Capacity
Startup
Delivered
Minimum Up-Time (Hours) :
NOx Emissions
Rate (Ibs/mmBtuCT)P:
WOnd AH R Coeffic
Long-Range Financial Forecast Assumptions Document / DO E Loan GuaranteeApplication / DOE Re-submittal

NO x Emission Rate
3
4
2)

/ DOE Re-submittal
Plant Net Dependable Capacity
Unit Maximum Pump Capacity
Unit Minimum Pump Capacity
Plant Pumping
Unit
Unit
Actual
December
/ DOE
Re-submittal
Average Heat Rate
110 nd AHR Coefficients
Fuel
Cat
(SimmBau
to
Long-Range Financial Forecast Assumptions

- Subject to Restricted Procedures
/ DOE Loan Guarantee
Unit'T *
7
NDC
Average
Incremental Heat Rate - PAG
Average Heat Rate =((A+ BX+ CXI) IXj mm
1)0and
Emission Rate (Ibs/mmBtu)f:
Unit 2 Avg.
Net Minimum Capacity (MW):
NDC with
PAG (MW)
incremental Heat Rate - Peak Firing (Sbu
incremental
Heat
Rate
)
Rate (bs/mmB
CO2 Emission
Secret Information - Subject to Restricted Procedures. Page 68 of 75
Document / DO E Loan
Average Heat Rate -
Incremental Heat
PAG
Rate (Ibs•mmBtu):
of 75

Average
Heat
Average Heat

Generation
(GWh):
Ramp Rates (MW/minute):

FuaO
ost
(Shimlguý
Cort
(mmBTtuon)
Procedures Page 73 of 75

RampRates (MW/minutep:
Long-Range
Financial
Forecast
AssumptiHeaons
Document
/ DO E Re-submittal
FLong-Range

Application
have
been
submitted
to
§ 1004.11(f
data and
Policy
is
issued
other source.
the Financial
*
MEMBER CAPACITY REVENUES
NON-MEMBER CAPACITY REVENUES
Model (DOE Taxable Scenario)(Oglethorpe) Black.xls
/8/2010
Vogtle2
NON-MEMBER ENERGY REVENUES
TOTALREVENUES
Blackxs
918/2010
Subiect
To
12-08-08
Chat
BioMass
DEPRECIATION& AMORTIZATION
FINANCE\DEBTDOE\uoe Dihgence\Appendor F - l208008joreoia Model (DOE Taxable Scenario)(Oglethorpe) Sleckols
W&2010
TOTAL OTHER NCOME
STATEMENT OF REVENUES & EXPENSES ($000)
Subect To Restrictd Procedures
Rocky Mtn.
Hatch1
Hatch2
Wansleyl
Wansley2
WansleyCT
Schererl
Scherer2
Vogtel
Vogtle2
(DOE TeaxableScenario)(Oglethorpe) Black.xls
TOTAL AMORT OF
9/8/2010
F -120808_Financial
Model DOE
Taxable Scenasrio)(Oglethorpe)Blackxis
Subiect
To
Model (DOE Taxable
RECEIPTS:
Diligence\Appendix F -120808 Financial Model (DOE Taxable Scenaio)(Oglethorpe)
Blackols
9/8/2010
ASSETS
UTIIYPLANT'
)
ELUrOFMEMBERS;
MEHBERSRIPEES
PATRONAGEAPITAL
PATCAP.
GAI ONROCKY TN EASE, EING MOR
ASSET ET.
TOTAL QUITYLIABILITIES
-
OEQTeIce OVEIAOBC
S& DSC
Diligence\Appendix
9/8/2010
Diligence\Appendix F - 120808_Financial
MFI
NO
Diligence\Appendix F - 120808_Financial Model (DOE Taxable Scenario)(Oglethorpe)
Black.xls 9/8/2010
Diligence\Appendix
F - 120808_Financial
Diligence\Appendix F - 120808_Financial Model (DOE Taxable
Scenario)(Oglethorpe) Black.xls
L:\OPC
Subject To Restricted
TOTAL FIXED O&M
TOTAL
General Plant
F - 120808_Financial Model
(DOE Taxable Scenadrio)(Oglethorpe)
TOTAL FIXED O&M
Total Property Tax
Diligence\Appendix F
- 120808_Financial Model (DOE
RUS 12-08-08
BioMassl
BioMass2
BioMass3
BioMass1
BioMass2
BioMass3
FUTUREGENERATION
INANCE$000)
NO RUS 12-0-08
Fionanlu Model DOE
BioMus 1
BioMias Bridge
Biodass Perm
-120808_FinancialModel (DOE
TaxableScenario)(Ogethtpc) Black.xls

DOE
9/82010
a
ian
DEBT
ME PhA
2 SP
)
880041
RUS 12-0848
Appling02
Appling03
98/2010
F - 120808 Financial Model (DOE Taxable Scenario)(Oglethorpe) Black.xis
9/8/2010
INTEREST PAYMENT
L:\OPC FINANCE\DEBTUDOE\Due Diligence\Appendix F - 120808 Financial Model (DOE Taxable Scenario)(Oglethorpe) Black.xis
9/8/2010
(DOE
- 120808_FinancialModel (DOE Taxable
Subject To Restricted Procedures
CWIP
& Purchases
918/2010
MFI NO RUS
Chattahoochee
Talbot
Vogtle 2 Asbestos Amort
Vogtle 2 Land Fill
Scherer 2 Land Fill
SubTotal
Diligence\Appendix
Scenario)(Oglethorpe)
Black.xls
9/8/2010
Diligence\Appendix
MFI
NO
TOTAL OPERATING EXPENSE
NO RUS 12-08-08
UNREALIZED LOSSES SWAP,
GAS HEDGES, SALE
NOTES PAYABLE
ACCOUNTS PAYABLE
ACCRUED TAXES
ACCRUED INTEREST
OTHER
DEFERRED
LIABILITIES
Diligence\Appendix F - 120808_Financial
ASSETS
DEFERRED
Diligence\Appendix F - 120808Financial Model
(DOE Taxable Scenario)(Oglethorpe)
RECEIPTS
c.nano)(Oglehpe) BSckxs
OPERATING REVENUES:
F - 120808_Financial Model (DOE Taxable Scenario)(Oglethorpe)
Black.xls
9/8/2010
DOE Phase 2 Step Up MFI NO RU S 12-08-08
OPERATING REVENUES:
TOTAL OPERATING
INT. DURING CONSTRUCTION
L:\OPC
FINANCE\DEBT\DOE\Due Diligence\Appendix F - 120808_Financial Model (DOE Taxable Scenado)(Oglethorpe) Black.xls
9/8/2010
CASH BALANCE

DOE
F
- 120808_Financial
OPERATING
REVENUES:
LEASES
TOTAL INTEREST CHARGES
L:\OPC FINANCE\DEBT\DOE\Due Diligence\Appendix F - 120808_Financial
Model (DOE Taxable Scenario)(Oglethorpe) Black.xls 9/8/2010

OPERATING
REVENUES:
TOTAL
INTEREST
CHARGES
F -120808_Financial Model(DOE
MFI
F -120808_Fodel(DOE
Model (DOE Taxable
Scenario)(Oglethorpe) Black.xis 9/8/2010
MFI NO
DiligencelAppendix
OPERATING REVENUES:
Diligence\Appendix
DOE Phase 2 Step Up MFI NO
RUS 12-08-08
OPERATING REVENUES:
OTHER INTEREST
- 120808_Financial
Model
RUS 12-08-08
F
- 120808_Financial
OPERATING
REVENUES:
MEMBER
CAPACITY
REVENUES
MEMBER
ENERGY
REVENUES
Diligence\Appendix
Black.xis
9/8/2010
9/8/2010
12-8-08
ASSETS
TOTAL CURRENT ASSETS
TOTAL DEFERRED CHARGES
DiligencelAppendix
ASSETS
TOTAL INVESTMENTS OF MEMBERS
LONG-TERM DEBT AND OBLIGATIONS:
TOTAL CAPITALIZATION
TOTAL
EQUITY
& LIABILITIES
L:\OPC FINANCE\DEBT\DOE\Due Diligence\Appendix F - 120808_Financial Model (DOE Taxable Scenario)(Oglethorpe) Blackxls
9/8/2010
Total PC Th

OPERATING
REVENUES:
MEMBER
CAPACITY
REVENUES
F -
9/8/2010
MFI NO
RUS 12-08-08
Diligence\Appendix F - 120808_Financial Model (DOE Taxable Scenario)(Oglethorpe) Black.xls 9/8/2010

12-04-08
ASSETS
TOTAL INVESTMENTS
OF MEMBERS
LONG-TERM DEBT
DiligencekAppendix F - 120808_Financial
12-04-08
ASSETS
UTILITY
PLANT:
UTILITY
RECEIVABLES
FUEL
STOCK
MATERIALS
&SUPPLIES
CURRENT LIABILITIES:
NOTES PAYABLE
ACCOUNTS PAYABLE
TOTAL
EQUITY
& LIABILITIES
MEMBER EVENUES
L OPC FINANCEXDEBTUDOE\Dueiligaence\Appendix- 12808 Finanoal Model (DOE Taxable
ScenarioXOglemoFpe)lack.xls
9/8/2010
Diligence\Appendix
Diligence\Appendix F - 120808 Financial Model (DOE Taxable Scenario)(Oglethorpe) Black.xls
9/8/2010
RUS 12-08-08
YEAR
NOTES
PAYABLE
ACCOUNTS
PAYABLE
OTHER DEFERRED
TOTAL EQUITY & LIABILITIES
MEMBERREVENUES
UNREALIZED
RUS 12-08-08
UNREALIZED LOSSES SWAP. GAS HEDGES, SALE
LONG-TERM DEBT AND OBLIGATIONS:
(DOE
Model DOE Taxable
OPERATING
REVENUES:

OPERATING
REVENUES:
MEMBER
CAPACITY
REVENUES
MEMBER
ENERGY
REVENUES
MEGAWATT
HOURS:
MEMBER
SALES
L:\OPC FINANCE\DEBT\DOE\Due Diligence\Appendix F - 120808 Financial Model (DOE Taxable
Scenario)(Oglethorpe) Black.xis 9/8/2010
UNREALIZED
YEAR
L:\OPC FINANCE\DEBT'DOE\Due DiligenceXAppendix F - 120808_Financial Model (DOE Taxable Scenario)(Oglethorpe) Black.xls
9/8/2010
ASSETS
UNREALIZED LOSSES SWAP, GAS HEDGES, SALE
YEAR
LIABILITI
TOTAL
EQUITY & LIABILITIES

MEMBERREVENUES
INTEREST
NCOME
odel DOE Taxable Scenano)(Oglethorpe)lack.xls
OPERATING
REVENUES:
Diligence\Appendix F- 120808_Financial Model (DOE Taxable Scenario)(Oglethorpe)
Black.xls 9/8/2010
Diligence\Appendix
Model (DOE
ASSETS
F - 120808Financial
RUS 12-08-08
NOTES PAYABLE
ACCOUNTS PAYABLE
ACCRUED TAXES
DiligenceMAppendix F - 120808_Financial Model (DOE Taxable
Scenario)(Oglethorpe)
Black.xls
9/8/2010
MEMBER
EVENUES
INTERESTNCOME
1357.3315
12-08-08
OPERATING
REVENUES:
NET EMISSION
NET MARGIN
MEGAWATT HOURS:
MEMBER SALES
L:\OPC FINANCE\DEBT\DOE\Due Diligence\Appendix F - 120808_Financial Model
(DOE Taxable Scenario)(Oglethorpe) Black.xls 9/8/2010

LEASES
INT.
Diligence\Appendix F - 120808_Financial Model (DOE Taxable Scenario)(Oglethorpe) Black.xls 9/8/2010

UNREALIZED
NOTES PAYABLE
ACCOUNTS PAYABLE
ACCRUED TAXES
ACCRUED INTEREST
OTHER
DEFERRED
LIABILITIES
TOTAL EQUITY & LIABILITIES
ASSETS
or in connection
an d
proprietary unless
restriction from
Page 1of 75

to

expenditures
Financing and
Interest Rate
Guarantee
Application
in proectin items
interest income.
Capitalized Interest
December 2008
Confidential Trade
Secret Information - Subject to Restricted Procedures Page 4 of 75
Long-Range Financial Forecast A ssumptions Document / DOE Loan Guarantee Application / DOE
Re-submittal
of
75
Re-submittal
resources
to

Long-Range Financial Forecast Assumptions Document / DOE
Loan
This expense
item includes
associated
Debt Service Adder
Major Maintenance Reserve
from participatin Members to
be used for future ma'or overhauls erformed on the Talbot and
Do
le
Procedures Page 9
Guarantee Application /
DOE Re-submittal
Procedures Page 11 of 75

Henry
LRFF
2008
December
/ DOE Re-submittal
/ DOE Re-submittal
Long-Range Financial Forecast Assumptions Document / DOE Loan
75
/ DOE
Loan
Guarantee
Monthly
Average
Off-Peak
Market
Price
Long-Range
Long-Range

Long-Range
Financial

Trade Secret Information - Subject to Restricted Procedures Page 19 of
75

Restricted Procedures Page

Court of A
Page
DOE Re-submittal
Desi
ated
Re-submittal
Page 24 of 75

Loan

Weighted
Average
Interest
Procedures Page
to Restricted

Page 32 of 75

/ DOE Loan Guarantee
exce
to Restricted
Procedures Page
/ DOE Re-submittal
to Restricted Procedures Page

I I
Doyle U U
U U U
Property
Tax
($000)
(Property tax for Vogtle 3 & 4 is included in the Fixed O&M totaL)
PROPERTY TAX
Rocky
Mtn.
Talbot
0
I I
Information - Subject to Restricted Procedures Page 40 of 75
Long-Range Financial Forecast Assumptions Document / DO E Loan Guarantee
Rocky Mtn.
- Subject to Restricted

to Restricted Procedures Page 46 of 75

to Restricted Procedures Page 48 of
75


Page 51 of
Loan Guarantee
Technology:
Net
Capacity
Factor
Page 54 of 75
/ DOE Re-submittal
Proposed Generating Unit
Biomass (2 uniits)
Long-Range Financial Forecast Assumptions Document / DO E Loan
Guarantee Application / DO E Re-submittal

Average Heat Rate - Maximum
z

Winter Net Dependable Capacity (MW):
Average Heat Rate - Summer (Btu/kWh):
Average Heat Rate =[(A +BX + CX
2
) / X]
mmB
NOx
Emission
(MW)
Avgerage
Heat
/ DO E
UnitType
Unit
Plant Net Dependable Capacity
Unit Maximum Pump Capcity
Unit Minimum Pump Capacity
Plant Pumping Pond Capacity
Unit
Unit
Actual
uivalent Forced Outage Rate Unit 3:
December 2008
Procedures

Fuel Consumption (000 tons):
nremental COHPAC
Dispatch Costs

CX')i X/ mma
IO and AHR
incremental
GD
December
2008
Confidential

Incremental
110Coefficients
B
C
Minimum
Up-Time
(Hours):
Minimum
Down-Time
(Hours):
Estimated
Forced
Outage
Rate (%):
Page 68 of 75
ate (I•bmmBtu):

Confidential Trade Secret Information - Subject to Restricted Procedures Page 70
of 75
/ DOE Re-submittal
Procedures Page 71

/ DO E Re-submittal
- Subject
/ OE R e-submittal
Average Heat
Cogl Suffur Content (% Sulfur)
Fuel Consumption (000 ons):
Page 74 of 75

Average
C.F.R. §
outside DOE. except
of
(Differences between DOE Fundin& and
DOE Funding &
the criteria for protection from public disclosure in 5 U.S.C.
§ 552(b)(4), 18
1004.1 1(f) By wa y
of
this
and
with respect to
purpose of evaluating
'under DOE's Loan Guarantee Program
under Title XVII of the Energy Policy Act of 2005. If
this applicant is
Title XVII
shall continue to be claimed as confidential, trade
secret,
loan guarantee agreement
or by other
to use or disclose data obtained without restriction from any
other source.
3.2.1 Historical
..........................
5-11
Total ener
Annual OPC s stem eak demand is forecast
to
ten, ars 1996 to 200) as 5.34 ercent
ear.
5
there
to be
expected
The forecast
models include
As in all forecasting, assumptions must be made about the economic and demographic
forces which are expected to support
future growth in the service territor
and about the
models to be used in the development of the projections.
forecasts of
Georgia's
largest
electric
are located
in northwest
Georgia and are wholly served by the Tennessee Valley Authority.
The 38
40,000 square miles.
wa s sold to residential consumers, 30.5 oercent to commercial
and industrial
except for the northwest corer and Flint
area
containing the four non-member Georgia EMCs. OPC's demographic and geographic characteristics are
therefore
of the state.
Georgia was founded in 1732 by General James Edward Oglethorpe, OPC's namesake,
as
and first line of defense against Spanish aggression. It is
the largest state east of the
Mississippi River
in the north to the Atlantic Ocean
in the
Gulf of
south.
Georgia's
lower middle latitude location produces a warm humid climate. The Appalachian Mountains
in
this area to experience colder winters and cooler summers while
the climate of the eastern and extreme southern
parts of the state are
moderated by the Gulf of Mexico and
Atlantic Ocean.
as
the state. Georgia's climate is humid, with annual precipitation
averaging a low
of 41 inches per year in northwest Georgia and a high of over
60 inches per year in the
extreme northeastern and southwestern corers of the state.
Snowfall
Georgia
diverse
generalizations. More than
(farming,
3.0 percent of the work force. Even
though the number
Trail (within
here.
area of rolling
The city of
Jackson, Walton,
one of the nation's busiest airports, major
corporate
1-2
Conventions, sporting
South of the Atlanta area, the
terrain flattens
Warm Springs,
where Franklin
waters. Nearby is Plains,
home of former President
Jimmy Carter. This area is largely served by Troup, Sumter, and
Upson EMCs.
Macon and Warner Robins are in the center of the state.
Warner Robins Air Force Base is a major presence
there.
Tri-County, Oconee, and Southern Rivers
Energies.
The eastern region contains growing metropolitan Augusta, famous for its golf courses and the site of the
Masters golf tournament. Jefferson and Rayle EMCs serve the surrounding area and benefit from steady
growth in Augusta.
Line divides the Piedmont and the coastal plain. During prehistoric
times,
this represented
Georgia's Atlantic coast. Deposits of kaolin are found in some areas along this ancient coastline.
Kaolin is
porcelain
china and medicinal compounds
(including Kaopectate) and to
coat printing stock. Washington EMC serves a large number of kaolin-related industries in its service area,
and these industries
are among OPC's
loads.
Central Georgia contains much of the state's peanut and peach cropland and is the home of the renowned
Vidalia onion. This
served
Georgia EMCs.
Th e eastern coastal plain is dominated by Savannah. As in other metropolitan areas,
the city's slow bu t
steady
the surrounding EM Cs
The southeast includes a large area of pine forests and
the famous Okefenokee Swamp. Nearby is the
King's Bay Nuclear Submarine Base
which has caused
Rural
EMC's
served
flat
cropland
where
peanuts,
corn, cotton, soybeans and
tobacco are grown. Large numbers of livestock are also raised here. Irwin, Colquitt (serving
the
largest
irrigation load among OPC's Members), Grady, Three Notch, Pataula and Mitchell EMCs are responsible
for electricity
same
half of the population living in a metropolitan area.
The state exhibits both wealth (brought
by
the
success
of corporations
such as Coca Cola, Georgia-Pacific, and Home D epot) and poverty (in
2000,
10.1
percent
Newcomers from throughout
state seeking
job opportunities and a better quality of life. They blend with
native
demographic characteristics.
has e riwth.
of
to certain
state.
Most
they provide
ort the
uniquely define
the forecast.
assumptions
used
2-2
2007 Official
primary weather stations.
saturation
Energy
to obtain the data.
and Atmospheric
*
state and
county levels
at all levels
source
2-8
across the state.
Most cities in the Georgia Territory are served by Georgia Power Company (GPC), Savannah Electric
Power Company (SEPCO) or the Municipal Electric Authority of Georgia (MEAG). Their service areas
have a hiher o ulation density than those of the EMCs, which serve
suburban and rural arts of the state.
3.2.3 Presentation
in Figure 4-1.
such factors as employment
of
Conditions
model
is
specific drivers identified
section.
4-4
Temperature
responses
are
measured
4-6
Official
Eer sales distribution by class,
as shown in Table 5-2,
5.3 Residential Consumers/Residential
2
only)
Insurance
Application
This
page
contains
confidential
trade
secret
and
proprietary
information
that
meets
the
criteria
under
)OE's
Loan
Guarantee
Program
under
with the
submission of
shall continue
without restriction
10.1 Payment D efault...............................................................................................15
Agreement
Schedule
C -
Definitions
ii
SunTrust
Bank,
formerly
known
are
Purchaser
with
respect
2.3
Purchaser's
Unconditional
Obligation
Purchaser's PC R
3
in the Resource
allocation with
obligations.
expenditure, or enter
Resource Modification
or (ii) enter into
an agreement for a Future Resource that is a Power Purchase Resource unless:
(a)
Purchasers
have
subscribed
for
PCRs
least
seventy-five
percent (75%) of the Seller's Board of Directors, (y) at least seventy-five
percent (75%) of the Member Purchasers and (z) Member Purchasers
having patronage
seventy-five percent (75%) of the accumulated
patronage capital of all Member Purchasers in the Seller as of the end of the most
recently completed fiscal year of the Seller. The approval of the Member
Purchasers
referred to in
clauses (y) and (z) must be evidenced by resolutions of the boards of
directors of such Member Purchasers specifically approving such Future Resource.
3.3.2 Subject
3.3.2, the
Seller may,
in its
sole discretion, undertake from time to time capital expenditures for a Resource Modification.
The parties recognize that a Resource Modification
may change the capacity or the term or
useful life
In such event, a change may be required to be
made with
A."
such modification may
the
Resource).
(b) If the Board of Directors of the Seller determines that a
Resource
Modification
is
a
Required
Resource
Modification,
PC R
(even
Gross
National
Product
Implicit
Price
Deflator
Modification no t described in clause (A), at least seventy-five
percent
of Directors and at
Resource
Modification (as evidenced by resolutions of the boards of directors of
such Member Purchasers specifically
(i) modify
to
such
Schedule
Default
the
Seller
share of the
Resource.
that each
of the
of Rated Capacity
extend to any Resource
such Resource
Purchasers
or become
defective, as
majeure or its
the
reasonable
control
at the
7.2 Accounting
fiscal year (and
after the
to such
an
annual
audit
certified public accountants
without
Purchaser shall at all
supporting
accuracy of
any charges or payments required to be made by the Purchaser to the Seller. If such
books,
information about one or
any identification of specific Other Purchasers or
provide
independent
representative
confidentiality agreement. If, after
to the accuracy of any charge and the Purchaser
proceeds
requirements of
confidentiality imposed
10
the two
inure
Agreement (as defined
consent
is given in writing
by the other party and, if either party is then an RUS borrower, the Administrator.
Any
assignment
made
without
be void and
rights
of the
Seller and
at least
consolidation), or (ii) is
approved by a majority of the Board of Directors of the Seller
and a majority
be continuing
evidenced
of Directors
Purchasers
of such Member
the Indenture shall
(b) if
the Seller
is then
an RUS
have
obtained the consent of the Administrator to the extent required by the Loan Contract.
9.4
that the obligations
Agreement
in
bankruptcy, a mortgagee or an indenture trustee taking charge of the assets
or business of the
trustee, mortgagee
all of the
rights of, and make all of the determinations provided to be made in this
Agreement by, the
Agreement shall
Section
to which this
Power Ass'n., Inc., 72
agree that
this Agreement
is not
a cooperative;
the Purchaser participates;
the Board
14
consequences
Purchasers
execute
Purchaser's PC R
Purchaser shall be
such remedy, provided
that no Performance
and
unconditional.
defaults
by
shall be construed
other
to
Seller
for
electric
capacity
time
terms of
this Agreement.
of the Seller unilaterally
and
consistent with
this Agreement.
to this Agreement,
to resolve the
in
Agreement
without
the
within
costs, liabilities,
damages and
in the exercise of the Purchaser's rights under Section 4.1.3
except for losses, costs,
action
this Agreement.
to any Future Resource.
anything in any
the
others
from
ownership or operation of its system or through
or on account
manner
as the Seller shall determine to be in its best business
interest.
Purchaser
agrees that the Seller shall not be restricted in the Seller's ability
to secure any
security title to or creating a lien or other
security
without to the purpose for which the
indebtedness has been or may be incurred or the purpose for which the assets are used or are to
be used, bu t the Purchaser's
contingent liability in the event of a Payment
Default shall be
decisions or do
to facilitate any
disclosure obligation
incurred by
in which such information
supplying party shall have no liability to any third
party to which the requesting party may furnish
this information
summary thereof, and shall
assurances
that
effect as a condition to providing such information, provided that no
such assurance or indemnity shall
relieve
for the accuracy and completeness of the information supplied.
18.6 No Third Party Beneficiaries. The Seller and the Purchaser agree that no
Other Purchaser or any other third party is an intended third-party
beneficiary of this
Agreement,
except as may be provided in a separate instrument executed by each of the Seller and the
Purchaser.
18.7
hereto have
been inserted
expand, or
as limiting the
for any and
of agreement
setting orth
the principal
(together with permitted
State of Georgia (the "Seller"), and
, an electric
RECITALS
The
Seller and the Purchaser are parties to an Amended and Restated Wholesale Power
Contract pursuant
Purchaser purchases electric capacity
and associated energy from
th Seller (the "Wholesale Power Contract"). This Agreement is entered into pursuant
to
terms and conditions of
have
the
meanings
Power Contract.
generatingfacility,
for a PC R in the New
Resource
as
set
Resource.]
B-1
3.3.1 of the Wholesale
to construct,
New
Contract.] or
[to make
of
acquire or enter into the New
Resource
of the following conditions:
(b) [add
any other
incurred by the Seller with
respect to the New Resource.
5. Representations.
deliver this
the
Directors
attached as
this Agreement.
(c) This Agreement has been duly executed and delivered by the Purchaser
and
or effect.
Wholesale
Power
Contract
of competent jurisdiction
portions or
on account of
an annualization
made
with respect to the refinancing debt during the portion of such
year such refinancing debt
during the following
debt, all as
Requirements.
"Depreciation
"Discretionary Resource Modification" shall mean a
Resource Modification that is not a
Minor
Resource
Modification
or
Resources
(and
shall
third Recital.
fourth Recital.
interest
expense
"Long-Term
Debt"
(2)
Resource
useful life
for the
1 to "Rate
Schedule A," and
in
party
Restated Wholesale
Power Contract
power
contract
with
Seller
in Section 10.1 or, where the context requires,
similar
payment
Purchasers.
"Percentage
Capacity
Responsibility"
or
the
"Person" shall mean an individual, partnership,
limited liability company, corporation,
nature.
"Power Purchase Resource" shall mean a purchase of capacity and energy or energy by
the Seller
than
one
of any Resource
Modification is treated as a separate
Resource under
Section 3.3.2(d). Any portion of a Resource Modification to a Power Purchase
Resource that
Resource under Section 3.3.2(d)
separate Power Purchase Resource.
all Power Sales Resources identified in Exhibits to
Appendix 1 to "Rate Schedule A" on the date
of this Agreement and any
future sale
of capacity
and energy or energy made by the Seller under Section
4.1.3 with a contract
membership corporation
sentence of this Agreement, or its permitted
successor or assignee.
"Rated Capacity"
time
"Withdrawal
in Section 17.
Power
Contract
electronic file
of the
Corporation in confidence and
from public disclosure
By
way
with respect to this
ioformation. The data
and information shall be used by DOE only for the purpose of evaluating this
application
tinder
with the
submission of
this Application, this data and information shall continue to be claimed as confidential, trade secret,
and proprietaryunless and until such claim is withdrawn
or altered
does limit the Government's right
to use or disclose data obtained
without restriction from
any other source.
INFORMATION
Effective:
All Rights Reserved
Approved:
Seller
may
Corporation (GTC)
through
the
Other
or
at the request
reliability. Purchasers that participate in Seller's existing or future long-
term sales (that result in an Exhibit to Appendix 1) will
receive an allocation
transmission expense will be
recovered in Appendix 1.
Control Area Services Expenses
an annual responsibility for all Purchasers. Each year, Seller
shall supply to each
by
to reduce
credit in
sufficient
firm
such
of
such
capacity
may receive a Capacity Reserve Sharing credit if such capacity is
used to supply the
contained in Appendix 2.
will
also
services and revenues
collected from all
Purchasers will provide schedules for pseudo-dispatch of Seller's resources and dispatch of
their own resources in accordance with
Seller's
and
its load requirements and resources with
one or
Agreement executed by
& PROPRIETARY INFORMATION
the allocation
of Coordination
such
Purchasers.
2005. After such
such Pooling
the
Prior
Period
Contract
Year,
which
may
be an additional charge or a refund credit, shall be the summation of the individual margin
determinations
greater than
maximum
rates and in
permanent
recognizes the
the Costs
of Future
This will
be done
the Wholesale Power
for their
projects in
wholesale
prices and
Rate
Administration
Approval
Th e Seller's Board of Directors must'approve rate schedule revisions
in order for them to be
effective. Currently
majority vote
Approved: March
27, 2006
of the step-up
Marginal
in Capacity
PROPRIETARY INFORMATION
INFORMATION
Effective:
Expense.
INFORMATION
Approved: March 27, 2006
Services Adjustment
Approved: March
27, 2006
CONFIDENTIAL &PROPRIETARY
Effective:
INFORMATION
Effective:
describe
CONFIDENTIAL
INFORMATION
INFORMATION
Effective:
June
INFORMATION
Effective: June 1, 2006
INFORMATION
PROPRIETARY INFORMATION
Approved: January 6, 2005 CONFIDENTIAL & PROPRIETARY
INFORMATION
This infonnation
the Oglcthorpe
9/2/2010 4:47 PM
pe r DO E

(f). This Infomation shall
is
issued
a result of
or in connection
Oglethorpe
Power
Corporation
CONFIDENTIAL
AND
PROPRIETARY
December
2008

Forecast...............................
.... .... ..... ........... 24

ag ate,
This report
December 2008
Page 3 of
tion for all assets,
assumtion of
Page 4 of 34

December
2008
Spot
Prices
(Dollars
per
Short
Ton)
$4S5
$160
$145
$140
$40
$25
$120
For comparison
December 2008 OPC Asset Valuation Report Page 11 of 34
2 -
o-
Uranium Purchased by
21e3 2004

study.

roects are assi ned
Forecast Cumulative
15December008 OP A et Valuation Report Page 22 of 34
10
5
Energy
3TotalRevmu leaaTotalmpn
I Madnum
FuelCo
bWCapa
Enegy
ReeRnue
Decmber
2008teOPC
Asset
WCC)Valuation
Report
Normi d
3TotalRenrue l)•s ToNiExpass
This
agencies whose review
is required for approval of the Oglcthorpc Vogtle Poject DOE Loan
Guaaintee
Application.
DOE
and
forms
Power Corporation
in confidence
the applicant
respect to
by DO E only for the purpose of evaluating
this application
and information shall continue to be claimed as confidential,
trade secret,
and proprietary
agreement
Oglethorpe
ra :
Offsetting
credit
Corp. will own
a 30% undivided ownership interest in two, 1,100 MW new nuclear
electric generation
the current Plant Alvin W . Vogtle
nuclear electric generation
Waynesboro, Georgia, which is 30 miles southeast of Augusta, Georgia.
The other owners
Company ("Georgia
to the Vogtle
The joint owners
also ow n
the
current
Plant
was filed with
the NRC on March 31, 2008. Th e ESP is expected to be issued in February, 2010,
and the
Power, on behalf of itself and
as
Units. Th e
1,
2017.
water
currently in general use in the commercial marketplace
in the United States,
not be by the time a Term Sheet is issued
by DOE for the loan
guarantee.
Oglethorpe
Power's
2008
is
approximately
ownership interest in the
Oglethorpe Power and the otherjoint
owners of the Vogtle Additional Units
have been
they faced
many
challenges together during the construction of the first two units at Plant
Vogtle, they
valuable
resources.
Bank
("FFB"),
guaranteed by DOE. The
FFB loan would be in an amount equal to 80% of Oglethorpe's costs
incurred for
its 30%
undivided ownership
above).
MOglethorpe
obligation issued under
Oglethorpe Power's Indenture is secured equally and ratably by a first priority lien on
substantially all of Oglethorpe's
assets, subject to
certain permitted liens. Fo r more information on Oglethorpe Power's Indenture,
see the attached
and
Members'
systems,
and considerable additional value in Oglethorpe Power's assets not reflected
on its balance sheet,
Power's generating
which constitutes
as of December
is 25%,
would be evident in a non-recourse
project financing, as there is
inherent
structure
where
generating
assets
in
a
position
superior
persons
agencies whose
of the debt balances
asset.
Respectfully,
Oglethorpe
The data
under Title XVII
as long as
issued under and
where she led a
AFUDI.
which are
capital markets
or commercial
financing United
States nuclear
Oglethorpe
expects
that
years, if
stages of the
renewal of nuclear
may well not be willing to provide
terms
552(bX4),
1004.1 l(f). This
of 1,845 MW
in Section B.6 -
and operating
delivered and whether
or not a
plant is completed,
ended December
31, 2007,
attached as
Oglethorpe's
Members
to
set their respective rates for retail service to their customers. The
Georgia Electric Membership Corporation Act, under which each of the Members was formed,
requires
respective rates at
for
reasonable
reserves.
discrimination in
the setting
GPSC,
by the Members is not
subject to approval by any
federal
("RUS"). Cobb EMC, Mitchell
approval
Oglethorpe
September
2008
16
8027179.4
8310240.1
reviewers
obligations,
Oglethorpe's
Members
power
supply
plans
include
capacity
reserves
needed
and whether or not
in Oglethorpe's
& Bradstreet
reports
attached
recognized
(Applicant
Specific)
Please refer to Item 3. in Oglethorpe's Annual Report on Form 10-K for the fiscal year ended
December
disclosure in 5 U.S.C. §
reviewers
shall
552(b)(4),
in this Appendix and any electronic file which
hereby forms a partof the
Application have been submitted to DOE by Oglethorpe
Power Corporation in confidence and contain trade secrets
and proprietaryinformation and meet
disclosure in 5 U.S.C.
U.S.C. § 1905, and 10 C.F.R. § 1004.11(f) By way of this
notice, the applicant hereby invokes all of he procedural
and substantive protections in these provisions of law
and other applicable law with respect to this data
and
information.
The
and
shall be used by DOE only for the purpose of evaluating this
application
under
Title
XVII
of the Energy Policy Act of 2005. If this applicant is
issued a loan guarantee under Title
XVII of the Energy Policy Act
of 2005 as a result ofor in connection with the
submission of this Application, this data and information
shall continue
confidential, trade secret,
and proprietaryunless and until such claim is withdrawn or altered in the final loan guarantee agreement or by
other
Corporation. This
right
to use or disclose data obtained without restriction from any other source.
Oglethorpe
of Directors
of Oglethorpe
XVII of the
is
accurate.
DO HEREBY
CERTIFY as follows:
1. Attached hereto and marked EXHIBIT A is a true and correct copy
of a
which
force and effect on the date hereof. Each of the
individuals voting on
such resolution.
2. Elizabeth
Officer with Oglethorpe,
genuine signature.
WITNESS my hand and the official seal of Oglethorpe as of September_, 2008.
(jt PPatricia
N. Nash
Application
WHEREAS
at its meeting on July 10, 2008, the Board of Directors of Oglethorpe Power
Corporation (An Electric Membership Corporation) (the "Corporation") authorized
of
to the
loan guaranty under Title XVII of the Energy Policy Act
of 2005;
3 and
as
Municipal
Electric
Authority
of
Georgia
and
WHEREAS
and payment of a non-refundable
fee of $200,000, by September 29, 2008, and
requires
submission
authorizing submittal of the application.
NOW, BE IT RESOLVED
the
Corporation,
at
Financial Officer of the
employees of the
Corporation, for and
of the Corporation,
to complete the submittal to the DOE of Part I of the Corporation's
application.
Officer has
RESOLVED FURTHER
officers and
employees of the Corporation, are hereby authorized and empowered, in the
name
to execute, make oath
papers, and to do or cause to
be done any and all other acts and things as may in the judgment of the Chief
Financial Officer
implement
the
of
is a true and
correct copy of a
certain resolution of the Board of Directors of the Corporation
duly adopted at
its meeting held after due and proper notice on September 11 , 2008.
This 11
18
U.S.C.
hereby
and substantive
protections in
information shall be
under DOE's
a result of or in connection with
the
submission
an d proprietaryunless an d until such claim is withdrawn
or altered in the final loan guarantee agreement or
by other
without
* patents,
trademarks;
Estate),
coal,
minerals and
all electric
SUTHERLAND 7957975.1
to possible
other distribution
of earnings
of , or actually pays under a guarantee
by
or affiliate (whether
period or any
losses have no t otherwise caused
other
included in net margins
not otherwise been included in net margins.
"Interest Charges" means, for any period,
Oglethorpe's total interest charges (whether capitalized or
expensed) for such period on all debt secured by or prior to or on a parity with
the Mortgage Indenture, in
3
7957975.1,
of all purchase money
release of property;
(B) as compensation
of the
Trust Estate
pursuant
obligations.
Credit
Enhancement
The
Mortgage
Indenture
provides
that
Mortgage
Indenture
Obligations
of
any
Indenture.
5 "Defeasance Securities" is defined in the Mortgage Indenture to include
non-callable bonds or other obligations,
the
or are unconditionally
(which may consist of specified portions of the interest thereon).
5
7957975.1
or
covenants
contained
in
the
written notice
percent in principal
(e)
in aggregate principal
unless
(A)
such
holder
had
previously
given
by
a
holder
Mortgage
Indenture,
of
any other action in accordance with the
provisions of the Mortgage Indenture.
With respect to the Mortgage Indenture Obligations
guaranteed or insured by the United
States
of such
guaranteed or insured by the United States of America, acting
by and through
possesses such Mortgage
shall be registered
America, acting by and through
the Administrator of RUS, as the registered
holder thereof,
information
from public
Federal Government
agencies whose review is required for approval of the Oglethorpe Vogule Project
DOE Loan Guaranlee
only
evaluation.
Oglethorpe
in this Appendix and any electronic file which
hereby forms a part of the
Application have been submitted to DOE by
Oglethorpe Power Corporation in confidence and contain trade secrets
and
proprietary information and meet the criteria for protection from public disclosure in 5 U.S.C. §
552(b)(4), 18
U.S.C. § 1905, and 10 C.F.R. § 1004.1 l(f) By way of this notice, the applicant hereby invokes all of the procedural
and substantive protections
law with respect to this data and
information. The data and
information shall be used by DOE only for the purpose
of evaluating this application
XVII
If this applicant is
loan
guarantee under Title XVI] of the Energy Policy Act of 2005
as a result of or in connection with the
submission
or altered
from Oglethorpe Power Corporation. This restriction does not limit the Government's right
to
use or disclose data obtained without restriction from any other
source.
Oglethorpe
Application - Part I
secret and
protection from public
§
Federal Government agencies whose review is required for
approval of the Oglethorpe
Vogtle Project Loan Guarantee
required reviewers shall
("the Application"), Oglethorpe is
of such equity.
source of such equity for
the purpose of the Application.
If Oglethorpe determines the best course of action its Members to
undivided ownership interest in Vogtle Electric Generating Plant Units 3 & 4 ("the Facility")
described in the Application, and if Georgia Power Company obtains the required regulatory
approvals for the Facility and Georgia
Power Company determines to proceed with the
construction of the Facility, then
Oglethorpe
the Facility directly,
sheet. Additionally,
and
Oglethorpe's tangible
assets. This first-priority
mortgage lien is
shared equally and ratably among all holders of debt issued under
the Indenture.
and its Members'
lenders
utilizing
superior to that which
single asset serves as security for
a
single
rates to recover their
reasonable
of expenses,
which constitutes
margins. Margins
is the
equity component
approximately 12%,
31,
Vogte Project
Loan Guarantee
Application. DOE
in
Members'
criteria for protection
This
information shall no t be released to persons outside DOE,
except for persons
reviewers shall
evaluation.
C.F.R. § 1004.11(0.
This information
only
The
in confidence and contain trade secrets
and proprietary information and meet the criteria for protection from public disclosure in 5 U.S.C. § 552(b)(4), 18
U.S.C. § 1905, and 10 C.F.R. § 1004.11(f) By wa y of his notice, the applicant hereby invokes all of the procedural
and substantive protections in these provisions
of law and other
by DOE
under DOE's Loan Guarantee Program
under Title XVII of the Energy Policy Act of 2005. If his applicant is
issued a loan guarantee under Title XVII of the Energy Policy
Act of2005 as a
the
submission of this Application,
this data and information shall continue to be claimed as confidential,
trade secret,
or
guarantee agreement
right
Oglethorpe Power Corporation
CONFIDENTIAL AND PROPRIETARY
This page contains
public disclosure
of the Oglethorpe Vogtle
and evaluation.
The data and information contained
in this Appendix
and any electronic file which hereby forms a part of the
Application
Power Corporation in confidence and contain trade secrets
and
proprietary
information and
meet the criteria for protection from public disclosure in 5 U.S.C. § 552(b)(4), 18
U.S.C. § 1905, and 10 C.F.R. § 1004.1
l(f) By way of this notice, the applicant hereby invokes all of the procedural
and
substantive protections in these provisions of law and other applicable law with respect to this data and
information. Th e data and information shall be used by
DO E only for
the purpose of evaluating this application
under DOE's Loan Guarantee Program under Title XVII of the Energy Policy Act of 2005. If this applicant is
issued a loan guarantee under Title
XVII of the Energy Policy
Act of 2005 as a result
of or in connection with the
submission
of
this
data and information shall continue to be claimed as confidential, trade secret,
and proprietary unless and
the
written communication from Oglethorpe Power Corporation. This restriction does not limit the Government's right
to use
or disclose
THE SECURITIES EXCHANGE ACT
OR
II
TRANSITION
REPORT
PURSUANT
THE SECURITIES
For the Transition Period From to
Commission File No. 33-7591
Georgia
58-1211925
(State
Indicate by check mark if the registrant is a well-known
seasoned
Indicate by check mark if the registrant is no t
required to file reports
Indicate by check mark whether
the registrant (1) has filed all reports required to be filed by
Section
the preceding
the
(2) has been subject to such filing requirements
for the
Indicate by check
to Item 405
contained herein,
to the best of registrant's
knowledge, in definitive proxy
III of this Form
10-K. [K]
filer, a non-accelerated
filer,"
and
"smaller
company (as defined Rule
12b-2 of the Exchange
Act). Yes No i/
equity held
by non-affiliates
equity was last sold, or the average bid and asked
price of such
business day of the registrant's
most recently completed second
stock, as of the latest
practicable date. Th e Registrant is
a
membership
equity
securities.
Table of Contents
2 Properties ...................................................................
Vote of Security Holders
PART II
5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of
Equity
Securities
6 Selected Financial Data ......................................................... 29
7 Management's Discussion and Analysis of Financial Condition and Results of Operations .........
30
7A
49
9
78
9A
93
Corporation)
MEAG
ii
OGLETHORPE
POWER
CORPORATION
revenues
in
excess
through
this
service
Power Contracts,
2005 (the
The Wholesale
Power Contracts
Resources.")
Cooperative
Principles
ooperative
Principles
Oglethorpe
has
interests
in
24
generating
units.
These
Cooperatives like Oglethorpe are business units provide Oglethorpe with a total
of
4,744
organizations
consisting of
MW of nuclear-
provide services to their members at the lowest
possible hydroelectric capacity, 1,411 MW of gas-fired capacity
cost, in part by eliminating the
need
to produce profits
(206 MW of which is capable of running on oil) and 15
or a return on
non-members,
Facilities.")
SUPPLY RESOURCES -
Member Power
Members
default,
default.
Members,
would
not
other
distribution
for
capaciyd
energy
furnised
u
ris
Wholle
Oglethorpe
has
made
a
payment
with
respect
to
such
capacity
and
energy
furnished
under
its
Wholesale
losses
or
expenditures.
Power
intervals as it deems appropriate
but is required to do so rate schedule to the Wholesale
Power
Contracts
least
the
of its requirements.
and to meet
Member
o o-
from Oglethorpe
trustee
(successor
Energy charges
to f c,
together mc
AND
with other revenues of Oglethorpe, to yield a Margins c . (See "MANAG ENS D
ION AND
for Interest
1.10.
"Margins
for
Interest
Ratio"
for a
given period. Margins for Interest is the sum of: The rate schedule formula also includes a prior
netargins
Interest Ratio.
date
but
excludes
provisions
for
(i)
non-recurring
sch ch es in year and collected from the Members
during the period
formula is intended to provide for
the
accrued
subject
to
refund),
plus
collection
or prior
1.10
Margins
rates
Margins
corporation owned
Operations
aggregate capacity of 709 MW. Oglethorpe
provides
Smarr EMC. (See
and currently
SUPPLY
schedule and dispatch Oglethorpe's resources.
Relationship with GTC Oglethorpe also purchases from GSOC services that
Oglethorpe,
the
38
Members
technology
at
provides
transmission
services
to
third
parties.
cost-based
rates.
Oglethorpe has entered into an agreement with GTC to Oglethorpe has a
modest amount of loans
capital
GT C has contracted
to satisfy its obligations
under this debt, Oglethorpe
Financial
Arrangements.")
Historically,
federal
loan
programs
administered
by
GT C has rights in the Integrated Transmission RUS have provided the principal source of financing for
System,
("GPC"), the made by the Federal Financing
Bank ("FFB") have
("MEAG") been a major source of funding
for Oglethorpe.
annual
federal
budget appropriations and
to Currently, RUS-guaranteed
loan funds are
to faced
by Congress.
that the RUS
program is no longer
of new generating plants. Further, RUS has
transmission facilities
generation. However, the budget
be considered
Georgia Territorial
such loans. Such
legislation is currently
rejected proposals to Oglethorpe's and the Members' relationships with GPC,
dramatically
curtail
so. Because of RESOURCES - Service
Area
and "PROPERTIES
- Fuel Supply,"
may be
contract, RU S has
generally
significant
* significant
electric utilities located in Georgia
for sales
may receive
Sc s
electric
if
* changes
* changes
are
suppliers
for
over
borrowers
the
Georgia
mortgage.
and as
into separate generation,
an interest
cost reduction
refinancings and prepayments of
a wide array of other potential
actions to meet future
increasing
enacted legislation
competition. Alternatives empowering the
GPSC to authorize Member
affiliates to
that could
.
arrangements;
services of a Member and the gas activities of its
gas
separate their
physical distribution
energy business, or otherwise
other
entities;
obligations
under
* participation
in
by
indebtedness;
or reorganize or
or power suppliers;
her
reulatoy and busines chanes that may or otherwise dispose of all or substantially all of
its
assets to
any person,
a transaction
and
developments, but cannot predict at this time the conditions are satisfied, including, but not
limited to, an
to Oglethorpe,
Seasonal
Variations
percent
The
demand
for
energy
by
the
Members
is
Storage
Hydroelectric
Facility
("Rocky
Mountain"),
a
Talbot Energy Facility
track
in substantially
which
is
operated
Oglethorpe has the option to participate in up
to
153 MW 30 percent of any
new project. The
with entered
rights and obligations of co-owners of the additional
See
"MANAGEMENT'S
DISCUSSION
AND
ANALYSIS
units,
if
OPERATIONS
- Financial
Condition
- Capital
Oglethorpe's
license application
to Consolidated
Financial Statements" regarding a power purchase commercial operation date as early as 2016, including
Financial Statements"
agreement with Doyle I, LLC
that Oglethorpe treats as the f i
of a appliatio or a
al
Permit.
a
not to participate
In addition, Oglethorpe
or elect to
participate at less
under the Public Utility
("PURPA").
Oglethorpe decides
from such qualifying facilities provided
less
than
Prior
Power
Contracts,
Power Contracts
RUS approval.
Oglethorpe
Future
Power
Resources
site.
8
cooperatives in
the State
Canoochee EM C
Habersham EM C
Sawnee EMC
EM C
Cobb EM C an EM C Southern Rivers Energy, Inc.,
Colquitt EM C Little
an EM C
Excelsior
Washington EM C
Members serve approximately 1.7 million electric consumers (meters) representing approximately 4.1 million
people. The Members serve a region covering approximately 37,000 square miles, which is approximately
65 percent of the land area in the State of Georgia, encompassing 150 of the State's 159 counties. Sales by the
Members 2007 amounted to approximately 35 million megawatt ("MWh"), approximately 67 percent
to residential consumers, 30 percent to commercial and industrial consumers and 3 percent to other consumers. The
Members are the principal suppliers for the power needs of rural Georgia.
While
the
service territories are
and are experiencing
substantial growth due to the expansion of urban areas, including metropolitan Atlanta, into suburban areas and the
growth of suburban areas into
neighboring rural areas. The 38 Members have experienced approximate average
annual
compound growth rates
from 2005 through 2007 of 3 percent in number of consumers,
3 percent in MWh
sales and 7 percent in electric revenues.
The following table shows the aggregate peak
demand and energy requirements of the 38 Members for the years
2005 through 2007, and also shows the amounts of energy requirements supplied by
Oglethorpe. From 2005 through
of the Members
Member
(1) ystem peak ofhe Members measured at the Members' (net
of
ystem
losses), adjusted to include requirements served by Oglethorpe resources, to the extent known by
Oglethorpe, behind the delivery points.
(2)Retail
Resources" below.)
(3) ncludes
9
State of Georgia.
Pursuant systems on
to
limited
the consumers
in
consumers may be
time subject to
the
Territorial Act in mortgages between the Members and RUS or loan
was enacted in 1973. The principal exception to
this documents with other lenders. The RUS mortgages
rule of exclusivity is that electric suppliers may compete
generally prohibit such distributions unless (i) after any
for most
The GPSC may reassign
territory only if it determines at least 30 percent of
its total
of do not exceed 25
percent
public convenience and necessity. The GPSC may capital received
by the Member in
20 percent
(see "Members'
(i) the GPSC determines, after joint application of Relationship with RUS").
electric suppliers and proper notice and hearing, that the Oglethorpe
is a membership corporation, and
the
Oglethorpe
is
convenience and necessity
require a transfer of Members are not subsidies of Oglethorpe. Except
Members
a
premise
such
Oglethorpe
and
Oglethorpe's
rights
under
such
adequate
or dependable or that its rates, charges, service Contracts to receive payment for power and energy
Contracts
rules and regulations unreasonably discriminate in favor s O h
n l i
supplied, Oglethorpe has
of or against the consumer utilizing such premise and
through a pledge or otherwise), or obligations in respect
the electric utility is unwilling or unable to comply with ,
h
- Wholesale Power Contracts.")
by
Revenues of the Members are, however, pledged under
allowing the owner of any new facility located outside their respective RUS mortgages or
loan documents with
of municipal limits and having a connected load upon other lenders.
initial full operation of 900
kilowatts
or
Oglethorpe depends
its from
the Members
pursuant to
the Wholesale
electric
power
The number of commercial and industrial loads served
by
limited competition in
Georgia, this competition
loans
supervision over the
of the
For
10
each case for the two highest out of
Bush administration has requested a decrease in funding
every three successive years. for the guaranteed loan program, which provides
The Georga EMp
The
Georgia
Electric
Membership
Corporation
Act,
of the Members was formed, requires redit te aount or
ost o re t an
predict
the
amount
or
cost
of
RUS
direct
and
of rates
by the
other than RUS,
rates, for delivery
GT C and the
Members to obtain GPSC
Cobb EMC, Diverse Power Incorporated, an EMC, to a transmission
tariff. The MTSAs have a minimum
Mitchell EMC, Oconee EMC, Snapping
Shoals EM C
and Wton ECre a of tr R term for network
service until December
growth
current e t i
option. Toe
Member elects
elsewhere,
it
must
transmission,
circumstances, be subject to regulation by FERC under they could
otherwise occur. Under the MTSAs,
the Federal Power
design, construct
and own
Throughrovisions in
Through
provisions
have been a
For additional information
average rates and lower
than average consumer income are eligible for special Oglethorpe Power Corporation
loans that bear interest
retail
f
udget
apsd
ca
Oglethorpe's
existing
resources.
Block Purchase
below.
rom
other
suppliers
s
described
below.
Twenty-nine
Members
have
entered
into
10-year
Contracts
with
SEPA
power
supply
contracts
with
GPC
under
which
they
will
The Members
Southeastern
SEPA allocation to the Members was 562 MW
plus
requirements from various sources. Thirty Members
requirements
from
various
sources.
Thirty
Members
Oglethorpe
remaining
SOC,
met, to contribute funds for capital improvements
for
their
requirements.
derived in order
list of Member power
to
For information about Members' activities relating to
purchase the output of those facilities pursuant to their power supply planning, see
"OGLETHORPE POWER
a two-unit, CORPORATION
participating Members), and Sewell Creek Energy
articipating
Members),
and
Sewell
Creek
Energy
Oglethorpe
Facility,our-unit, 492 MW as-fired combustion will likely also continue to acquire future resources
turbine facility (with
.
12
mercury from
local air
allowance trading
under the
issued by the
the
units are
heat, into
requirements that regulate the manner of transportation, emisson allowan which authorize te eission of
storage and disposal of various types of
waste. one
ton of
year or thereafter,
facilities
imposition of civil and criminal penalties as well as the
complete
shutdown
8-hour standard
remain in
litigation. The
Atlanta area
legislation that has had and will
continue to have a being re-classified to a more stringent nonattainment
significant impact
The status, while
the Macon area
has been designated
to bring the
Oglethorpe is the Clean Air Act, which
has required Atlanta area into attainment is due at the end of
2008.
13
standards will be
haze rule were also
The goal of the
visibility conditions
in the
to remain in
the 2006 standards
Georgia state
originally due in
to
Georgia.
stay Clean Air Mercury Rule and State-Related Mercury Rules. In
and to delete Georgia from this regulation. 2005, EP A finalized a regulation that would control
emissions of
EP A
finalized a clean air cap-and-trade program that would reduce emissions of
cap-and-trade
program
that
would
reduce
emissions
of
interstate
challenging the rule,
in early 2008,
and remanded the
units from
in Section 112 of the Clean
Air
Act.
for
te
sulfur
dioxide
follows in 2015.
Year-round operation of the ogias lan Moreover, Georgia's new mercury rules
Georgia's
plan.
Moreover,
Georgia's
new
mercury
rules
selective
catalytic
reduction
systems
already
installed
at Plant Scherer a fl i 2 i a " o
rue
implementation
reduction
system
(nitrogen
oxides)
and
the
scrubber
plan.
(sulfur
dioxide
mercury
rule
was
issued
14
to the Supreme
or final
Source
utilities (and other
numerous grounds,
including that EPA should
statutes,
which ma y
impose more stringent
including limits
2007 for further
differences
in
proceedings in light of that decision. While the outcome
these legislative proposals, most would impose caps on of these matters cannot be determined at
this time,
and/or
cannot
continues
new source
were pollutants
Oglethorpe
it concludes
needed to protect
directed
whether
further
case, in 2004,
the U.S.
of Oglethorpe
Court
source
review
appealed in October 2005. Th e matter is now awaiting ("NSR") rule. Petitions to
review both of these
for the

upheld the December 2002 rule in part. However, it also Under the Clean Water Act, EPA
and state
vacated certain
environmental
impaired state
October 2003
rule, which
was intended to clarify the waters.
The establishment of TMDLs and/or additional
scope of the exclusion for routine maintenance and measures to control non-point source pollution
may
repair, was vacated by
the court in March 2006. In result in a tightening of limits in
water
discharge
including
change to
limitations that
purposes of NSR, be deemed to occur. The impact of are established, the effects of such developments cannot
the litigation
Georgia.
The
stated
Georgia in response to them and cannot be predicted at prpose of this Georgia in anagin
thstm.purpose of this plan is
to guide Georgia in managing
this time.
to
developments, and the implementation approach selected systems,
and to enhance the quality of life for all
by EPA and the
lays
expenditures and increased
incurred by Oglethorpe for the
continued operation of
guide river basin and aquifer management plans and
Plants Wansley and/or Scherer. regional water planning efforts statewide in a manner
ce whe
key
other enforceable
this
may have
capital or
operating expenses ma y cause an increase in a a a
the cost
of power
MEMBERS
Other Environmental
16
high-level radioactive
waste materials,
including spent
interest, are
also subject, from time Departmen t of Energy ("DOE") for such material.
to ime, to claims relating to operations and/or These contracts require each
such owner to pay a fee,
to time,
which
is
. .
each of its reactors.
executed to
or future actions, for
fuel
the responsibility of Oglethorpe for
a share of any produced at Plants Hatch and Vogtle. DOE failed
to
begin disposing
that the current
co-owners of the
actions will have a
material adverse effect on its plants, is pursuing legal remedies against DOE for
financial position or results of operations.
breach of contract. See Note 1 of Notes to Consolidated
Financial
and Vogtle
spent-fuel wet storage
Act"),
which vests jurisdiction in the NRC over the on-site dry storage facility. Th e on-site dry storage
construction
facility
for
Plant
Hatch
spent fuel pool storage
jurisdiction is
2015. Oglethorpe
consider the environmental
Energy Act.
in sufficient time to
maintain
full-core
pool.
(See
Note
1
time to time, new NR C F
For information
ue
the NRC determines
decontamination
see Note 1 of Notes to
operating licenses issued for each unit of Plants Hatch onsoldated nanca
SoConsolidated
and Vogtle expire in 2034 and 2038 and 2027 and
2029, respectively.
was submitted to the NR C in June 2007. Oglethorpe
is
Power Ac t applicable to licensees with respect to their
An application
of hro ri
for Rocky
additional information.
1982, as
amended, the federal government has the responsibility Upon or after the expiration of the license, the
for the
17
take over
the project or FERC may relicense the project licenses, under the same terms and conditions of the
either to the original licensee or to a new
licensee. In existing license, until a new license is issued.
the event of
with
ompensation
clear
responsibility
for
FERC
licensee in the project, not in excess of the fair value of t p
. A
generation
from the
therefrom of the
property taken. If
u
the existing license, FERC is required to issue annual
18
with
these
The
following
describes
the
most
significant
risks,
in
regulations.
Additionally, litigation
damage or personal
risks that Oglethorpe
to hazardous
currently no t
and future results of operations.
adverse
be
Oglethorpe's
increased in
As
with
most
electric
utilities,
Oglethorpe
subject
disposal
of
various
types
* significant
by

respective insurance premiums, whether at its own year. An y participation by Oglethorpe in the
plants or the plants of other nuclear owners; and development
of new nuclear facilities could
increase its
end of their operational life. plants involves significant financial risk. Moreover, no
nuclear plants have been constructed in the United
Currently, there is no national repository for spent nuclear plants have been constructed in the
United
using advanced designs. Therefore, estimated cost
nuclear
fuel,
is inherently
been disappointing. Spent nuclear fuel from Plantsy w n p i i y
uncertain.
If
Oglethorpe
chooses
in on-site storage
uncertainf Oglethorpe chooses
to participate in
facilities. Oglethorpe currently forecasts that the on-site development of any new nuclear units, it could be
S1exposed
with
such
projects.
of the
operate its facilities in a successful manner.
external
threats
or expensive
terrorist attacks;
requirements, the
These or similar negative
capital
e
addition, while Oglethorpe has
increasing
serious incident at either of
these plants, if an incidentrpe
to the Members.
to
t in sstantial
csts to Oglethorpe
.
.
prohibit the operation or licensing of
any domestic fr te
within the next
growth
in
that Oglethorpe
expand its existing
factor.
expenditures. The completion
of in the past, and believes that it will maintain sufficient
construction projects without delays or cost overruns
is access to capital markets based on current
credit ratings.
subject to
the views of
* work stoppages;
* permits,
approvals
and
other
regulatory
matters;
lowered,
particularly
below
investment
grade.
" adverse
weather
conditions;
* unforeseen
engineering
problems;
and
labor;
and
* an
economic
downturn;
* attention
construction of coal-fired power plants due to
Oglethorpe's
ability
M ember ith wholesale el is to provide the
have to seek alternativeources of financing (see Members with wholesale electric power at the lowest
"OGLETHORPE
POWER
CORPORATION
- Relationship
possible
cost.
Other
technologies
currently
generating facilities could be adversely affected. Under current Georgia law, Oglethorpe's Members
generally
have
the
exclusive
right
to
provide
retail
Changes in fuel prices could have an adverse effect on electric service in their respective territories, subject to
Oglethorpe's
Some states
have implemented
Oglethorpe is exposed to the risk of changing prices various forms of retail competition among
power
for fuels, including coal, natural gas and uranium, suppliers. While no such legislation has been enacted or
Oglethorpe
has taken steps to manage this exposure by is currently proposed in Georgia, there is no assurance
entering into fixed
or capped price contracts for some that legislative, regulatory or other changes will not in
of its coal requirements. Oglethorpe has also entered the future lead to increased competition in the electric
into natural gas swap arrangements on behalf of some industry. If Oglethorpe and its Members are unable to
of its Members
designed to manage the exposure of adapt to any such changes, the prices they charge for
those Members to fluctuations
gas. The operator of the nuclear plants owned by Oglethorpe
provides electric
service to
use under long-term, take-or-pay
of long term fixed or capped
price contracts with joint and several liability among the Members, if
one or
and more Members were
to experience significant financial
enrichment services. However,
these arrangements do losses as a result of increased competition, the Members
not cover
Oglethorpe under their Wholesale Power Contracts.
increases
an adequate
The
suppliers.
including disruptions due
supply needs. If
acquire more power supply
Oglethorpe's fuel suppliers,
could result in Oglethorpe needed, whether from Oglethorpe or other suppliers, or
having insufficient levels of fuel supplies. For example, fail to acquire sufficient supplies, Members' rates could
rail transportation
and affect
financial performance.
caused transportation companies to be unable
to Thus, Oglethorpe is exposed to the risk that one or
perform their contractual obligations to
deliver coal on a more Members could default in the performance of
timely basis and
have resulted in
under the Wholesale
plants. Similar inventory shortages could
occur in
if one
be subject to or more of the Members,
particularly one of the larger
disruption due
events. Members,
For example, hurricanes in the Gulf of Mexico
during Oglethorpe. Although the Wholesale Power Contracts
2005 resulted in short-term limitations in the production obligate non-defaulting Mem bers to
pay the amounts
of
and distribution of natural gas, resulting in shortages any payment default, pursuant to a pro rata step-up
and significant increases in the price of natural gas. Any formula,
there can be no guarantee that other Members
failure to maintain an adequate inventory of fuel would be able to fulfill this obligation.
supplies could require Oglethorpe to operate other
generating
plants
None.
22
Generating
Facilities
The following table sets forth certain information with respect to Oglethorpe's generating facilities, all of which
are in commercial operation.
Expiration
Date
Plant
246.0 1979
1987 2027
Unit
No .
1
Pumped
Storage
Talbot (near Columbus,
Units No. 1-4 Ga s 100 412.0 2002 N/A 2
Units No. 5-6 Gas-Oil 100 206.0 2003
N/A
t
Total
4,743.9
(1)An
20 years was filed in une 2007.
(2) ossil-fired units do not operate under
operating licenses similar to those granted to nuclear units
byhe NRCnd to
Sale
Agreements
r
a
. Shr.u
erfra
coal mines in the
Equivalent
Oglethorpe
separately
dispatches
Plant
Wansley
90 101 86
Unit No . 2
No . 1 86 90 97 80 80 88 and Vogtle.
GPC has contracted with Southern Nuclear
Unit No . 2
multiple suppliers
for uranium
dependable
capacity"
rating.
(2)Capacity
Factor:s
a measure of the output of a unit as a percentage of he
maximum
ismeasured only
owned by Hartwell
availability commitment of
Doyle I,LLC.he units
may be Limited
The nuclear refueling cycle for Plants Hatch
and prices. Oglethorpe has entered into
hedge agreements to
to fluctuations
in the
calendar years
taken out
of
with respect
to Members
equivalent availability
purchases
No. 2 is
As
24
Plants Hatch,
Vogtle, Wansley and Scherer Units No. 1 and No. 2 are co-owned
by Oglethorpe,
GPC, MEAG
leases undivided
interests in the amounts shown in the following table (which excludes
the Plant Wansley combustion turbine).
Oglethorpe
Scherer Units
Plant Hatch Plant Vogtle Plant Wansley No. 1 &No . 2 Rocky Mountain
Total
% MW
GPC 50.1 817 45.7 1,060 53.5 926 8.4 137
25.39
215
3,155
-
-
120
(1)
GPC
is a wholly owned subsidiary of The Southern Dalton Utilities is a combined utility that provides
Company and is engaged primarily in the generation electric, gas, water and wastewater services
to
the
city
and
distribution and
sale of such energy. GP C distributes the surrounding communities. It presently serves more
and sells energy within
than 10,000 residential, commercial
Augusta, Columbus, Macon, Rome and Valdosta), as
well as in rural areas, and at wholesale to some
of The Plant
- Oglethorpe's
rights
the informational
MEAG and Dalton. Oglethorpe
reports and
is a
in
and Vogtle, a 60
Municipal Electric Authority
of Georgia undivided interest in Scherer Units No. 1 and No . 2 and
The
undivided interest in those facilities at
The
Municipal
Electric
Authority
as MEAG Power)
is a state-chartered,
action
Common Facilite
Opera
entered
into
maintenance
MEAG Power has wholesale take-or-pay power sales Agre nts relatingo the oeran ad a nc
of
Plants
Hatch,
Wansley,
Vogtle
and
Scherer,
contracts with each of its 49 participants that extend to
lants atch, ansley, gtle
39 of the resectiel.
Agreements
relating
to
Plants
Hatch
Operating Agreements
reting t nt
bhi
Oglethorpe.relating
with respect right
to each
such agreement.
capital improvements.
In 1993, the
separate
and
and obligations as a administration of the Plant
Hatch
term increased
of
the
leases. Oglethorpe's leases expire in 2013, with decisions and allows GPC to contract
with a third party
options to
renew for a total of 8.5 years. Oglethorpe for the operation
of the nuclear
units. In March
also has fair market value purchase options at specified 1997, GPC designated SNOC as the operator of Plants
dates, including 2013
renewal Hatch and Vogtle, pursuant to the Nuclear Operating
terms. These
transactions are treated as capital leases by Agreement between GPC and SNOC, which the
Oglethorpe for financial reporting purposes. (See
Note 4 co-owners had previously approved. In connection with
of Notes to Consolidated Financial Statements.) (In the the amendments to the Plant Scherer Ownership and
following
"owning" a specified percentage of interests include entered into the
Plant Scherer Managing Board
Oglethorpe's rights as a deemed owner with respect to Agreement
which provides for a managing board to
its leased interests
the
for, among other provides for increased rights for the co-owners
regarding
certain
decisions,
but
does
role as
Hatch, Vogtle, Wansley and
No. 2 and the Scherer
Common Facilities. Each entitled to a percentage of the net capacity and net
Operating Agreement gives GPC, as agent, sole energy output of each plant or unit equal to its
authority and responsibility
interest owned or leased
in such

Documents

Oglethorpe Power Corp Application