Southwestern Federal Power System combined financial statements and supplemental schedules for the years ended September 30, 1994 and 1993

The Southwestern Federal Power System encompasses the operation of 24 hydroelectric power plants by the US Army Corps of Engineers and the marketing of power and energy from those plants by Southwestern Power Administration of the US Department of Energy. To integrate the operation of these hydroelectric generating plants and to transmit power from the dams to its customers, Southwestern Power Administration (Southwestern) maintains 2,220 kilometers (1,380 miles) of high-voltage transmission lines, 24 substations, and 46 microwave and VHF radio sites. Southwestern`s headquarters are in Tulsa, Oklahoma; its dispatch center is in Springfield, Missouri; and its maintenance crews are based in Jonesboro, Arkansas, in Gore and Tupelo, Oklahoma, and in Springfield, Missouri. Three divisions - Administration and Rates, Power Marketing and Delivery, and Maintenance - are responsible for meeting Southwestern`s mission. Twelve of the 24 generating plants are scheduled directly by Southwestern, and a total of 19 contribute to the interconnected system operations. Generation at the five remaining projects (Denison, Narrows, Sam Rayburn, Whitney, and Willis) is used to serve specific customer loads. At the end of fiscal year 1994, Southwestern marketed power and energy to 10 generation and transmission cooperatives, one distribution cooperative, three military installations, 41 municipal utilities, and three municipal utility joint-action agencies. One of the joint-action agencies has its own allocation of power from Southwestern; the other two serve 34 municipal utilities to whom Southwestern has allocated power. The total number of power allocation customers is 92. Additionally, excess energy is occasionally sold to non-allocation utilities. The primary purposes of Southwestern are to market Federally generated hydroelectric power, operate a reliable and safe transmission system, and encourage energy efficiency for the benefit of the region