2018 Annual Report

Financial Highlights

Three-Year Summary of Selected Financial and Operating Data
(Dollars in thousands) 2018 2017 2016
Total revenues $681,328 $623,574 $661,382
Total assets and deferred outflows of resources $9,024,019 $8,996,764 $9,115,995
Property, plant and equipment, net $5,690,057 $4,910,870 $5,255,928
Debt outstanding (excluding defeased bonds) $6,662,341 $6,781,075 $7,146,111
Weighted average interest cost(1) 4.22% 4.11% 4.09%
Total delivered energy to MEAG Power Participants (MWh)(2) 10,806,130 10,453,361 10,771,270
Cost to MEAG Power Participants (cents per kWh):      
Total cost(2)(3) 6.76 6.76 6.63
Bulk power cost(3) 6.80 6.69 6.58
SEPA cost(2) 6.24 7.80 7.34
Peak demand (MW) 1,904 1,884 1,923
Total nominal generating capacity in service (MW)(4) 2,069 2,069 2,069

(1)Excludes the impact of certain net non-operating expense components such as receipts and payments pertaining to interest rate swap agreements, amortization of debt discount and expense, investment income, the net change in the fair value of financial instruments and interest capitalized. The rate is net of subsidies on Build America Bonds.

(2)Participants purchase hydro energy directly from the Southeastern Power Administration (SEPA). Such energy is included in these calculations.

(3)Funds from the Municipal Competitive Trust were applied to lower the Participants’ annual generation billings.

(4)Excludes SEPA capacity which is purchased by the Participants and capacity purchased by MEAG Power from others.

Selected Highlights

Total Assets & Deferred
Outflows of Resources (dollars in thousands)

Total assets and deferred outflows of resources increased $27 million during 2018 due primarily to a $779 million increase in PP&E, partially offset by a $725 million decrease in special funds, mainly related to CWIP payments.

Total Revenues (dollars in thousands)

Total revenues increased $58 million during 2018 due primarily to certain timing factors and a planned reduction in Competitive Trust Funding. These factors were partially offset by a reduction in Participant billings for fuel expense.

Total Debt Outstanding (dollars in thousands)

During 2018, total debt outstanding decreased $119 million due mainly to scheduled principal payments exceeding new borrowings.

Delivered Energy By Source(percent)
  • Nuclear Generation 61%
  • Gas Generation 16%
  • Coal Generation 12%
  • Hydro 7%
  • Net Purchases 4%
Fixed- and Variable-Rate Debt(percent)
  • Fixed-Rate Debt 86.9%
  • Variable-Rate Debt 10%
  • Variable-Rate Debt Synthetically
    Converted to Fixed 3.1%
Total Debt Service

Because total debt service on our operating projects is expected to continue to decline, we have put MEAG Power in a favorable position to take on the debt related to the expansion at Plant Vogtle.