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A Special Report on Puerto Rico
Water Resources Authority
Government Development Bank For Puerto Rico
ASTRA PER ASPERA
JANUARY 1958
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Commonwealth of Puerto Rico
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COMMONWEALTH OF PUERTO RICO
Puerto Rico Water Resources Authority GOVERNING BOARD
Chairman: Hon. Luis Munoz MarIn, Govenior of the Commonwealth of Puerto Rico
Vice Chairman: Hon. Roberto Sanchez Vilella, Secretary of Public Works Member: Hon. Luis Rivera Santos, Secretary of Agriculture and Commerce OFFICERS Executive Director: S. L. Descartes
Head, Power Division: Rafael R. Ramirez
Chief Engineer: Miguel A. Quinones Head, Water Service Division: Harold Toro Acting Head, Power Utilization Division: Victor M. Cataldo Controller: Antonio E. Lebr6n
Personnel Officer: Fernando Torrent General Counsel: Gabriel Guerra-Mondrag6n
Head, Purchasing and Stores Division: Feldc Cordova Diaz Treasurer: Eduardo Lube Power Economist: Walton Seymour
TRUSTEE The First National City Bank of New York
CONSULTING ENGINEERS
Jackson & Moreland, Inc. AUDITORS Arthur Andersen & Co.
BOND COUNSEL
Mitchell, Pershing, Shetterly & Mitchell
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ELECTRIC POWER IN PUERTO RICO
S. L. Descartes, Executive Director, Puerto Rico Water Resources Authority.
Puerto Rico Water Resources Authority
Growth and Deuelopment The extraordinary economic development which in less than two decades has transformed Puerto Rico from an agricul
tural area dominated by sugar into a modern diversified economy with industrial income surpassing farm output is due in large part to the utilization of electric power resources.
Virtually all Puerto Rico is now served by a single inte grated electric system under the administration of the Puerto Rico Water Resources Authority. Generation of power has risen more than sevenfold since its creation in 1941. Over 450
new industrial plants established during that period are now in operation. The rhythm of Puerto Rico's dynamic growth, however, is by no means slowing down.
The story of electricity in Puerto Rico is the story of the Water Resources Authority — a public corporation gov
erned by a Board consisting of the Governor of Puerto Rico, the Secretary of Public Works, and the Secretary of Agricul ture and Commerce. This Board appoints an Executive Director, who selects all other officers and is charged with full authority and responsibility for the development, man
agement. and operation of the electric system. What has already been done and what is planned by the Authority is briefly told in the following pages.
Manacillo Transmission Center, one of the largest instal
lotions of the Puerto Rico Water Resources Authority
Historical Background The origin of the Authority may be traced back to 1908, when a Public Irriga tion Law was approved providing for the construction of an irrigation service in southeastern Puerto Rico. In 1915 this Puerto Rico Irrigation Service built its first small hydroelectric plant and this was followed by a second unit placed in operation in 1922. The demand for electric energy continued to grow rapidly, and in 1925 a new agency was created within the Puerto Rican Department of the In terior, to which was entrusted all hydroelectric development and the admin istration of the Puerto Rico Irrigation Service. This organization, known as
Utilization of Water Resources, operated until 1941, at which time its prop erties and duties were transferred by law to the newly created Puerto Rico Water Resources Authority.
In 1944 the Authority acquired by purchase the private utilities serving two principal areas. By these acquisitions practically the entire electric system of Puerto Rico was integrated. Remaining separate were the electric systems of two irrigation services and a number of small municipal and private plants which (with a single exception) have since been acquired by the Authority. Since 1941, when the Authority as such was created, very substantial changes have taken place in its organization and essential character. During recent years hydroelectric generating facilities have been surpassed in im portance by thermal-electric facilities, transmission voltages have been stand
ardized and the entire plant has been modernized. Changes in the type of service rendered in order to meet modern industrial demands have also been
effected. These progressive measures have produced corresponding modifica
tions of the Authority's organizational and administrative structure. Today the Puerto Rico Water Resources Authority is recognized as being among the most progressive and modern as well as one of the largest publicly owned electric utilities in the United States.
PUERTO RICO WATER RESOURCES AUTHORITY
ELECTRIC SYSTEM NOVEMBER
90,1957 SAN JUAN STEAM plant
ISABCLA H.C.
11 5ANTURCE STEAM PLANT
plant
the navy
COMEBlO M E. PLANTS^, RIO Blanco MAYACUCZ STEAM
plant
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ocieo.o.e
TCRQNEOROM.C Plant
?« ^ ^bicavev municipal
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plant
CARZAS ^ E PLANTS
YAUCO\H C. PLANTS UvTO^lOj^CCMtTTI ^SCOVO
r CARITE H.E
PLANTS
cuayanilla steam Plant
(under construction) L
EGEND
HYDRO ELECTRIC plants-CAPACITY 20.000 TO 25.000 KVA
STEAM PLANT - CAPACITY
STEAM PLANT
hydro-electric Plants-capacity HYDRO-ELECTRIC plants - CAPACITY
5.000 to lo.ooo kva 2.500 TO 5.000 KVA
hydro-ElECTRic Plants - capacity
iooo to 2.500 kva
MYDRO-ELECTBlC PLANTS - CAPACITY
500 TO lOOO KVA
^ RESERVOIRS
CAPACITY
STEAM Plant - capacity
lOO.OOO TO 200.000 KVA
30.000 TO lOO.OOO KVA io.ooo to 30.000 kva
" electric distribution lines
, 38 KV electric transmission lines
C9 1 .5KV ELECTRIC TRANSMISSION LINES (uNDEP CONSTRUCTION) SP existing 115 KV ELECTRIC TRANSMISSION LINES
E Plant
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The Antonio Liicchetti Dam, dedicated in 1954, was the second of five ittajor dams connected with the Southwestern Puerto Rico Project. This project extends
over an area of 250 square miles. Part of the project involves diversion of water through the mountain divide of nearly eight miles of tunnels.
Management and Staff The remarkable record of the Authority is due in large measure to the foresight and vision of its first Executive Director, Antonio Lucchetti, who conceived the over-all plan and secured the cooperation of executive and legislative leaders in bringing it to reality. Subsequent events have amply demonstrated the wisdom of those who foresaw the role which the development of electric power would play in the social and economic progress of Puerto Rico. The present Executive Director of the Authority, S. L. Descartes, is a
graduate of Cornell University and of the University of Puerto Rico. Mr. Descartes was Treasurer of Puerto Rico from January, 1949 to July, 1952, at which time he became the fi rst Secretary of the Treasury when that office was created by the Constitution of the Commonwealth of Puerto Rico.
The Authority has now over 3,300 regular employees including construction
personnel. The eight principal executive officers in charge of engineering, power system management, construction, accounting, and administration have served with the Authority for an average of twenty years each.
As consulting engineers the Authority retains the firm of Jackson & Moreland, Inc., of Boston; Arthur Andersen & Co. is retained as account
ants and auditors. A review and general appraisal of the Authority s insurance
program was made this year by Commonwealth Services Inc.. of New York, retained for that purpose and for periodic reviews. Resource Development Corp. advises the Authority on some policy matters.
The Area Served The relations of the Commonwealth of Puerto Rico with the Federal Gov
ernment are defined in an Act of Congress known as the Puerto Rican Federal Relations Act. This Act, Public Law 600, is "in the nature of a
compact," which became effective upon approval by the people ol Pueito
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Rico. Over internal affairs, the Commonwealth has virtually the same control as does each of the forty-eight states over its own. The currency, postal, and military services of Puerto Rico are identical with those of the United States. The Commonwealth Constitution provides for an elected Governor and a bicameral legislature exercising distinct powers. The judiciary is independent, and is headed by a Supreme Court whose members are appointed for life. Appeals may be carried to Federal courts, including the Supreme Court of the United States.
The Authority supplies electric service throughout Puerto Rico, covering an area of 3,423 square miles and having a population currently estimated at 2,287,000. Only the town of Cayey and the small outlying islands of Vieques and Culebra, representing less than one per cent of Puerto Rico's electric power consumption, lie outside the present system of the Authority. The Capital of Puerto Rico is the City of San Juan, located on an excellent natural harbor in the northeastern section and served by a modern airport which handles over 900,000 passengers and 6,000,000 pounds of freight per year. Industrial development in the San Juan Metropolitan Area, which includes several cities adjoining the Capital and has a present population of approximately 600,000, has advanced rapidly; San Juan is also the site of the University of Puerto Rico and the center of Commonwealth and Federal gov ernment offices. On the south coast the principal industrial city is Ponce, noted particularly for the production of sugar products, cement, and rum. West of Ponce are important chemical and oil refinery operations. Other leading cities include Mayaguez on the western coast and Arecibo in the northwest, both important for food processing and apparel production. The central portions of Puerto Rico are mountainous, providing oppor tunities for hydroelectric power production jointly with the collection and conservation of tropical rainfalls for irrigation use on the coastal plains. A statistical summary of the economic growth and balancing of the economy during the past two decades is presented in the table at the end of this report. PUERTO
RICO
WATER
RESOURCES AUTHORITY
Total Revenues,Balance, Available for Debt Servicing and Service Requirements DOLLARS
35,000,000 -
LEGEND
30,000,000 â&#x20AC;&#x201D;
TOTAL REVENUES BALANCE AFTER CURRENT EXPENSES
25,000,000 -
DEBT SERVICE REQUIREMENT
20,000,000
15,000,000
10,000,000
5,000,000
FISCAL
FISCAL
1950-51 ÂŤ APPROVED BUDGET SOURCE PRWRA FINANCIAL
FISCAL
1952-53 REPORT
FISCAL 1953-54
FISCAL
FISCAL
FISCAL
1954-55
1955-56
1956-57
FISCAL
1957-58 *-
Electric System Total power production in Puerto Rico in the twelve months ending No vember, 1957, stood at 1,471 million kilowatt hours compared with 166 million in 1940 â&#x20AC;&#x201D; more than an eightfold growth. The number of consumers had risen about three and one-half times during the same period, from 100,492 to 346,264. The very large net increase in electric consumption per consumer was primarily the result of two factors â&#x20AC;&#x201D; rapid growth of industrial
power consumption, and the sharp rise in standard of living as reflected by the constant installation of more electric appliances. Total installed generating capacity of the Authority at the end of Novem ber, 1957 had a name plate rating of 310,280kw. The physical plant presently consists of 23 generating stations, of which 19 are hydroelectric and four are
steam plants. Thermal-electric facilities, rated at 201,000kw, now supply approximately 88 per cent of electric energy generated. The Authority's transmission system consists of 1,057 miles of 115kv and 38kv lines, controlled and sectionalized at fifty transmission substations
located at suitable points throughout the system to insure stability of service and provide appropriate voltage to metered serviees in 75 cities and towns as well as a large number of rural areas. Distribution facilities include 109 substations with a capacity of 242,755kva.
Rural Electrification In 1941, the Authority started a general program of rural electrification with
funds provided jointly by the Commonwealth Legislature and the Authority. San Juan Steam-Electric Station â&#x20AC;&#x201D; 168,000kw. Built in 1951 with originally 2-20,000kw units it now has 4-20,000kw and 2-40,000kw turbo-generators.
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PUERTO RICO WATER RESOURCES AUTHORITY
Condensed Balance Sheet AS OF NOVEMBER 30, 1957
ASSETS UTILITY PLANT
$208,531,838
OTHER PHYSICAL PROPERTY AND MORTGAGE RECEIVABLE
991,837
BOND REDEMPTION, RESERVE AND CONSTRUCTION FUNDS
18,194,231
CURRENT ASSETS:
Funds and working advances
$ 7,721,022
Accounts receivable
4,485,202
Materials and supplies
6,459,443
Prepayments, special deposits and other
1,084,293
19,749,960
DEFERRED DEBITS:
Debt discount and expense in process of amortization Other
$ 3,275,257 143,916
TOTAL ASSETS
3,419,173 $250,887,039
LIABILITIES CONTRIBUTED CAPITAL
$ 28,516,094
UNAPPROPRIATED NET REVENUES
18,628,064
LONG TERM DEBT (Including notes payable pending long-term financing)
155,586,000
CURRENT LIABILITIES:
Accounts payable Customers' deposits and accrued interest Accrued interest on Electric Revenue Bonds Accrued contributions in lieu of taxes Other
$ 2,022,266 1,194,274 1,765,974 1,527,547 3,073,240
DEFERRED CREDITS
9,583,301 335,176
RESERVES:
Depreciation Self-insurance
Hydro-production equalization
$27,805,034 1,819,099
39,657
Revenue stabilization
1,626,496
Appropriated sinking fund
6,593,975
Other
354,143 TOTAL LIABILITIES
38,238,404 $250,887,039
PUERTO RICO WATER RESOURCES AUTHORITY
Condensed Statements of Revenues and Expenses (For Revenue Fund Purposes per Trust Indenture) TWELVE MONTHS ENDING June 30 1955
June 30 1956
June 30 1957
November 30 1957
$31,169,835
REVENUES:
Sales of electric energy
$19,799,240
$25,215,538
$28,693,447
309,090
479,415
531,419
604,566
$20,108,330 203,360
$25,694,953 271,765
$29,224,866 635,436
$31,774,401
$20,311,690
$25,966,718
$29,860,302
$32,733,1 10
$ 3,292,301 5,734,877 1,682,166 171,660
$ 4,417,223 7,100,514 2,245,124 429,689
$ 5,702,454 8,095,091 2,928,220 404,484
$ 7,113,248 8,354,087 3,134,784 433,296
$10,881,004
$14,192,550
$17,130,249
$19,035,415
$ 9,430,686
$11,774,168
$12,730,053
$13,697,695
$ 2,731,879 1,533,601 104,295
$ 3,056,773 1,653,516 210,069
$ 2,955,274 1,781,532 321,517
$ 3,192,276 1,827,491
Total sinking fund payments
$ 4,369,775
$ 4,920,358
$ 5,058,323
$ 5,419,793
Balance
$ 5,060,911
$ 6,853,810
$ 7,671,730
$ 8,277,902
$
$
$
$
Other operating revenue
Total operating revenues Other income Total revenues
958,709
CURRENT EXPENSES:
Operation —
Fuel purchased Other operation expenses Maintenance
Other current expenses
Total current expenses Balance of revenues after current
expenses (per Trust Indenture). SINKING FUND PAYMENTS:
Interest account (exclusive of interest
charged to construction) Bond redemption account Reserve account
400,026
TRANSFERS TO:
General reserve fund — provision for selfinsurance
Total transfers
.
200,545 2,438,951
248,818 3,048,874
$ 2,639,496
Renewal and replacement fund
289,789
302,917
3,574,557
3,696,139
$ 3,297,692
$ 3,864,346
$ 3,999,056
$ 2,421,415
$ 3,556,1 18
$ 3,807,384
$ 4,278,846
2,093,697
2,753,228
3,140,048
3,41 1,493
Balance available for contribution
in lieu of taxes, etc PROVISION FOR CONTRIBUTION IN LIEU OF TAXES
$
327,718
$
802,890
$
667,336
$
867,353
Transfer to sinking fund reserve account $
163,859
$
401,445 39,066
$
333,668
$
433,676
$
163,859
$
440,511
$
333,668
$
433,677
$
163,859
$
362,379
$
333,668
$
433,677
Balance PROVISION FOR:
Revenue stabilization Total
Balance transferred to unappropri ated net revenues
7
Growth of the Annual Load of the System Since 1940 Total Fiscal Year
(June 30) 1940-41 1941-42
1942-43 1943-44 1944-45
1945-46 1946-47 1947-48 1948-49 1949-50
1950-51 1951-52 1952-53 1953-54
1954-55 1955-56
1956-57 1957-58-
Revenue
r
Sales of
Electric Energy
$ 3,610,373 4,162,985 4,456,299 4,959,850 5,186,618 5,764,058 7,285,346 9,280,474 10,338,403 11,170,252 13,005,874 14,879,793 16,114,935 17,825,369 19,799,240 25,215,538 28,693,447 32,205,240
Kwhrs. Sold
138,960,072 176,174,675 183,788,983 211,574,477 225,520,917 258,594,948 296,661,918 344,694,360 371,051,833 411,726,648 488,243,234 565,103,630 625,274,634 699,920,609 774,933,164 930,829,350 1,078,420,562 1,242,391,950
Average Customers
100,492 106,762 109,352 112,147 117,101 124,959 132,492 144,207 162,133 176,642
185,090 195,061 211,567 228,205 245,058 314,853 338,685 356,639
Maximum
Average
Kilowatt
per
Peak Load Kilowatts
Load Kilowatts
Hours per
Kilowatt
per
Customer
Hour
Customer
17,960 18,350 46,800 51,490 54,060
9,220 11,000 27,550 31,772 33,464 39,147 44,602 51,364 54,647 59,248 68,694 76,911 87,089 97,124 108,717 129,325 153,153 190,500
1,383 1,650 1,681 1,887 1,926 2,069 2,239 2,390 2,289 2,419 2,638 2,897 2,955 3,067 3,162 2,956 3,184 3,484
$.0260
$35.93
62,900 70,410 80,060 87,900 98,180 109,040 122,330 139,870 154,520 178,160 209,740 248,938 293,000
* Approved Budget.
In June, 1952, arrangements were made by the Authority with the Rural Electrification Administration of the Federal Government to continue the pro
gram for raising standards of living in the rural areas. The contract with REA was for $6,376,000 to be loaned in amounts of $2,000,000 per year through the purchase by REA of 2 per cent special revenue bonds. This contract was amended in 1955 to bring the total loan to $13,000,000. The Legislature of Puerto Rico acted to reimburse the Authority for differences between the cost
of furnishing electric service in rural areas and revenues collected from con sumers served in those areas.
The REA program consists primarily of distribution lines and substations in rural areas. The number of rural customers on June 30, 1957 was 136,957. Service for approximately 32,000 families included in this total has been pro vided under the REA financed program, and for the balance either by the
Authority directly or under the legislative program mentioned previously, in 1957 a further amendment to the loan contract was made, providing for an additional $10,900,000. This further REA loan was to provide generating and transmission facilities serving rural areas. j (coi inn 000
Up to November 30, 1957, the Authority had borrowed $_1,100,00 at 2 per cent from REA.
Financing The Program
The Authority has broad powers under the legislation by which it was created, including the power to borrow money and tssue revenue bonds for any of its corporate purposes and to secure the payment of such bonds under a Trust Indenture, ft has full authority to set and collect rates and other
Revenue
.0236
38.99
.0242
40.75
.0234
44.23
.0230
44.29
.0223
46.13
.0246
54.99
.0269
64.36
.0279
63.76
.0271
65.64
.0266
70.27
.0263
76.28
.0258
76.17
.0255
78.11
.0255
80.79
.0271
80.08
.0266
84.72
.0259
90.30
charges for the use of its facilities, as well as having complete control and supervision over its properties and activities. Properties may be acquired by the Authority by any lawful means, including the power of eminent domain. For many years the Authority has pursued a policy of obtaining short-term bank borrowings for the purpose of constructing facilities under its Capital Improvement Program; from time to time, issues of revenue bonds are sold for the repayment of such loans and the continuance of construction. In this way the facilities producing income for the support of long-term obligations are to a large extent already in operation by the time such obligations are issued. Bonds outstanding, including the 2 per cent REA issues, totaled $136,486,000 as of November 30, 1957.
In addition, a substantial amount of the Capital Improvement Program has been financed directly from revenues of the Authority. In the period from May 1, 1947 to November 30, 1957, a total of $167,089,220 was
invested in capital improvements; of this amount, $128,865,989 had been pro vided from bank borrowings of the proceeds of bond issues and $38,223,231,
Bonded Debt Now Outstanding GENERAL MARKET ISSUES Amount
Coupon by Maturity Range
Price
Outstanding Nov. 30, 1957
Jan. 1/50
104%
$38,500,000
July 1/53
104%
21,839,000
1,325,000 2,020,000 1,555,000 15,825,000
July 1/58
105%
20,805,000
5.00% 3.00% 3.25% 3%%
120,000 980,000 2,490,000 8,850,000
Jan. 1/60
103%
12,440,000
3.00% 3.25% 3.40% 3.50% 3.60% 3.70% 3.75%
335,000 245,000
July 1/61
104%
22,000,000
Original Issue
Date
From
To
Int. Rate
Amount
$50,000,000
Jan. 1/47
Jan. 1/58 Jan. 1/66 Jan. 1/74
July 1/65 July 1/73 July 1/77
2.75% 2.50% 2.70%
$13,055,000 16,087,000 9,358,000
Jan. 1/58 Jan. 1/81
July 1/80 July 1/84
2.75% 2.80%
11,414,000 10,425,000
Jan. 1/58 Jan. 1/59 Jan. 1/71 Jan. 1/81 Jan. 1/84
July 1/58 July 1/70 July 1/80 July 1/83 July 1/88
4.75% 4.30% 4.60% 3.75% 4.75%
Jan. 1/58
Jan. 1/83
July July July July
1/59 1/69 1/82 1/90
July July July July July July July
July 1/62 July 1/65 July 1/70 July 1/75 July 1/81 July 1/89 July 1/93
25,000,000 21,000,000
12,500,000
July 1/50 July 1/53
Jan. 1/55
Jan. 1/60 Jan. 1/70
22,000,000
July 1/56
1/58 1/63 1/66 1/71 1/76 1/82 1/90
First Call Date
80,000
485,000
560,000 975,000 1,845,000
17,555,000
RURAL ELECTRIFICATION ADMINISTRATION ISSUES 1,000,000 2,000,000 2,000,000 2,000,000 2,400,000 2,500,000
July 1/52 July 1/53 July 1/54 July 1/55 July 1/56 July 1/57
9,200,000
July 1/57
Jan. 1/58 Jan. 1/58 Jan. 1/58 Jan. 1/58 Jan. 1/59 Jan. 1/60 Jan. 1/60
July July July July July July July
1/87 1/88 1/89 1/90 1/91 1/92 1/92
2.00%
934,000 1,912,000 1,956,000 2,000,000 2,400,000 2,500,000
2.00%
9,200,000
2.00% 2.00%
2.00%
2.00% 2.00%
$
Any time Any time Any time Any time Any time Any time Any time
100% 100%
934,000 1,912,000
100%
1,956,000
100%
2,000,000 2,400,000
100% 100%
2,500,000
100%
9,200,000 $136,486,000
or about 23 per cent, had come mainly from net revenues of the Authority. On November 30,1957,total assets amounted to $250,887,039,operating and appropriated reserves were $38,238,404, net contributed capital and unappro priated earnings were $47,144,158, and current debt was $19,100,000. Total revenues for the twelve months ended November 30, 1957 were
$32,733,110. Operating and maintenance expenses for the same period were $19,035,415, leaving $13,697,695 to meet debt service requirements. The maximum debt service for any future year on outstanding issues was $6,550,180, indicating a coverage of 1.98 times. Payments to the Commonwealth and municipal governments in lieu of taxes amounted to $3,140,048 in the fiscal year 1956-57.
During the rapid expansion of facilities and improvement of service over the past decade, the Authority's rates have not been raised; constant increases
in demand have consistently provided adequate yearly growth in revenues and substantial reserves. On the basis of continuing rate-planning studies, it is not expected at present that any general increase in electric power rates will be necessary in order to carry out the extensive Capital Improvement Program described below.
In January, 1958, the Authority will issue $25,000,000 par value of elec tric revenue bonds, from which all current bank borrowings will be retired and about $5,000,000 will be made available for new construction.
Security of Bonds Bonds issued by the Authority under the Trust Indenture are payable from the Puerto Rico Water Resources Authority Sinking Fund, into which Fund
South Coast Steam-Electric Station
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PUERTO
RICO WATER RESOURCES AUTHORITY
REVENUES FROM SALES OF ELECTRICITY
i RESIDENTIAL TOTAL
MILLIONS OF DOLLARS
FISCAL 1946 YEARS
1947
1948
1949
â&#x2122;Ś APPROVED BUDGET SOURCE: PRWRA FINANCIAL
1950
1951
1952
1953
REPORT
the Authority has covenanted to deposit a sufficient amount of its revenues, after expenses for maintenance and operation of its electric properties, to pay the principal of and the interest oh all bonds issued as they become due, as well as to create reserves for such purposes.
The Authority further covenants to fix reasonable rates and charges suffi cient for the payment of maintenance, and operating expenses and bond prin cipal and interest, and to create certain reserves. In addition the rates must provide for the making of deposits required by the Trust Indenture to the credit of the General Reserve Fund and the Renewal and Replacement Fund,
and for payments in lieu of taxes to the Commonwealth and the municipalities it serves.
In order to issue additional bonds under the Trust Indenture, the Authority must demonstrate that the average annual net revenues of its electric proper
ties for the preceding twenty-four months, after deducting the cost of main taining, repairing and operating such properties during such period, have been not less than 150 per cent of maximum debt service payable in any succeeding fiscal year including the proposed issue.
The Authority's bonds are exempt as to interest from Federal and State income taxation under existing laws, and are specifically exempted from Commonwealth taxation. There has never been any delay in payment of the
obligations of the Authority when due, nor in those of the Commonwealth and its municipalities and agencies. 11
The Outlook During the period from July 1, 1957 through June 30, 1961, it is anticipated that the Authority will invest $117,800,000 in further capital improvements. Of this amount the sale of bonds will provide some $95,000,000, while about
$23,000,000 will be derived principally from direct revenues of the Authority. This four-year program compares with capital expenditures actually made during the past eleven years, as follows: Hydraulic Production Plant Steam Production Plant Transmission Plant Distribution Plant Other Facilities Total
$35,691,686 54,695,772 18,092,467 45,027,183 13,582,112 $167,089,220
It is well known that the economic growth of Puerto Rico has been very
rapid in recent years. Commonwealth status exempts Puerto Rico from Federal income taxation, and the Commonwealth Government has exempted
most new industrial plants from local income and property taxes during their initial operations. Other industrial incentives in Puerto Rico include the recruitment and training of workers, and the provision under attractive lease terms of modern buildings favorably located for industry. The result of this successful industrialization program is an ever-increasing diversification of the economy accompanied by rapid construction of homes,
hotels, and commercial buildings. This in turn is producing an unparalleled demand for electric power, which the Puerto Rico Water Resources Authority is responsible for meeting, and at the same time it must anticipate needs for the immediate future. Continuous studies of power needs, constantly reviewed
and revised by the Authority and its Consulting Engineers, now indicate that peak demand on the system will increase from 289,000kw in 1957-58 to 347,000kw in 1958-59, 410,000kw in 1959-60, and 464,0Q0kw in 1960-61. From 16,000 to 20,000 new consumers will be added yearly, and the system load factor is expected to increase to 65 per cent as a result of further new heavy industrial equipment. To meet this demand, the projected name plate rating generating capacity of the Authority in 1960-61 will be raised to approximately 600,000kw by 1961, or almost double the present capacity. Public Lighting, Roosevelt Avenue, Hato Ray, Puerto Rico.
/
PUERTO RICO WATER RESOURCES AUTHORITY San Juan,Puerto Rico
The Community
We Serue Fiscal Years
An Expanding Economy:
1940
1957
Net Income — Millions of Dollars
225.3*
1,006.9*
346.9
Net Income per capita — Dollars .
121.0
443.0
266.1
286.7*
1,236.7*
331.4
92.7
449.0
384.4
17.6
112.4
538.6
311.8
1,044.0
234.8
Gross Product — Millions of Dollars
. . . .
% Increase
Commercial Banks:
Total Bank Assets — Millions of Dollars . .
Savings and Time Accounts — Millions of Dollars
Assessed Value of Taxable Property — Millions of Dollars Recurrent Revenues of the Central Government — Millions of Dollarsf Power Generation — Millions of KWH . . . .
26.3
197.5
651.0
166.0
1,341.6
708.2
A Healthier, Better Educated Population:
Population
1,878,000
2,287,000
Birth Rate — Per Thousand Death Rate — Per Thousand
39.0
32.9
18.2
7.0
Life Expectancy — Years Public Day School Enrollment State University and College Enrollment . . .
46.0
68.0
47.8
286,113 4,987
553,683 15,176
93.5
21.8
—15.6t —61.5$
204.3
Percentage
A More Balanced Economic Life:
Points
Change
Percent of Net Income* from:
Manufacturing Agriculture Commonwealth and Municipal Government .
12.0%
21.0%
31.0
15.0
—16.0
9.0
13.0
Trade
12.0
18.0
+4.0 +6.0
Other
36.0
33.0
—3.0
62.0
27.0
—35.0
38.0
73.0
+35.0
Percent of Export Trade: Sugar — Raw and Refined Other Exports
* According to a revised series prepared by the Puerto Rico Planning Board. t Includes Federal Grants in Aid. t Decrease.
+9.0
I k
n
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-.ii ' *-i
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