Southern Power District 2007 Annual Report

Financial Highlights

Southern Power District showed an increase in revenue from 2006 due to the overall increase in retail rates.

The cost of power expense is showing a considerable increase of $2,169,811 which is a result of the overall increase in purchased power from Nebraska Public Power District, Southern’s wholesale power supplier.

Other expenses are showing a slight decrease due to the overall capitalization of storm related expenses.

The interest on long-term debt expense is showing a large increase of $1,557,495 due to the large amount of loan fund which was borrowed to rebuild the electrical system from the December, 2006 ice storm damage.

The net margin of $2,579,446 is showing a slight increase of $136,044 over last year’s net margin due to the overall retail rate increase.

Other information inside the 2007 Annual Report