Georgia Department of Revenue Prepared October 2014 Local Government Services Division Public Utility and Airline Flight Equipment Valuation for 2014 Public Utility Section Changes From Previous Year Type of Company Electric EMC Flight Gas Gas Pipeline Railroads Telephones Total Equipment Municipal Private PY Number of Companies 7 50 35 23 3 9 28 77 232 CY Number of Companies 7 49 32 23 4 9 28 72 224 PY Unit Value 46,600,000,000 11,767,675,997 57,137,599,231 24,460,094 3,052,800,000 10,330,000,000 31,249,498,518 30,204,700,458 190,366,734,298 CY Unit Value 48,950,000,000 12,811,187,809 64,120,130,852 24,553,680 1,602,800,000 10,368,000,000 32,150,986,260 30,148,631,901 200,176,290,501 % Change 5.04% 8.87% 12.22% 0.38% -47.50% 0.37% 2.88% -0.19% 5.15% PY Georgia FMV Operating 14,925,106,982 9,210,369,486 1,445,088,686 24,460,094 1,426,315,808 1,367,970,121 2,389,268,064 4,336,646,951 35,125,226,192 CY Georgia FMV Operating 14,697,025,514 9,678,333,634 1,648,054,153 25,059,840 1,447,611,744 1,429,453,118 2,325,974,002 4,353,532,609 35,605,044,614 % Change -1.53% 5.08% 14.05% 2.45% 1.49% 4.49% -2.65% 0.39% 1.37% PY Georgia FMV Non-OP 1,510,436,297 25,788,296 0 39,304 692,489 7,729,656 45,964,963 5,070,185 1,595,721,190 CY Georgia FMV Non-OP 1,378,063,438 27,260,749 0 900 692,489 7,712,106 45,825,487 4,660,870 1,464,216,039 % Change -8.76% 5.71% 0.00% -97.71% 0.00% -0.23% -0.30% -8.07% -8.24% PY Georgia FMV Total 16,435,543,279 9,236,157,782 1,445,088,686 24,499,398 1,427,008,297 1,375,699,777 2,435,233,027 4,341,717,136 36,720,947,382 CY Georgia FMV Total 16,075,088,952 9,705,594,383 1,648,054,153 25,060,740 1,448,304,233 1,437,165,224 2,371,799,489 4,358,193,479 37,069,260,653 % Change -2.19% 5.08% 14.05% 2.29% 1.49% 4.47% -2.60% 0.38% 0.95% CY Georgia Return 16,075,017,740 9,690,667,610 1,494,136,033 24,333,773 1,433,853,775 1,413,989,511 2,014,954,245 3,412,831,571 35,559,784,259 CY Georgia FMV Total 16,075,088,952 9,705,594,383 1,648,054,153 25,060,740 1,448,304,233 1,437,165,224 2,371,799,489 4,358,193,479 37,069,260,653 % Change 0.00% 0.15% 10.30% 2.99% 1.01% 1.64% 17.71% 27.70% 4.24% The values of the operating properties of electric, private gas, pipeline, railroad, and telephone companies are estimated by the unit-rule method if adequate data is obtained. Under the unit-rule method, the value of the operating business is estimated utilizing the income approach and a cost approach to value. In the valuation the income approach is initially given 80% weight and the cost is given 20%. The income approach is a capitalized earnings method in which an estimate of free cash flow for the tax year is divided by an estimated after-tax weighted average cost of capital (“WACC”) minus an estimated future growth rate in free cash flows. Should there be instances where the income approach either cannot be applied or produces unreasonable results, alternate approaches will be used. (For example, a company may not have or might not furnish sufficient historical cost or income data needed to properly apply both the cost and income approaches described herein.) In those circumstances the Department will use the most reliable information reasonably available and its best appraisal judgment in estimating the utility’s unit value, including but not limited to the use of the market multiples or any other accepted valuation method. The values of the operating properties of electric membership corporations and municipally owned gas systems, the flight equipment of airlines, and all non-operating properties are estimated utilizing standard real and personal property appraisal methods. 2014 GEORGIA PUBLIC UTILITY AD VALOREM TAX DIGEST Georgia Department of Revenue Prepared October 2014 Local Government Services Division Public Utility Section Electric Valuations - 2014 Electric Power Companies Co Unit Gross Deductions Net Indicated Deductions Indicated Net DOR Indicated DOR Non-Op Non-Op No. Value Return Return FMV FMV FMV Factor Factor Return FMV Alabama Power 3050 0 148,794 0 148,794 150,000 0 150,000 148,794 1.00810517 1.00000000 0 0 Duke Energy 3100 0 358,292 0 358,292 370,000 0 370,000 358,292 1.03267726 1.00000000 0 0 Electric Power Board of Chattanooga 3200 0 20,519,452 0 20,519,452 21,000,000 0 21,000,000 20,519,452 1.02341914 1.00000000 0 0 Florida Power & Light Co. 3250 27,000,000,000 845,718,309 384,335,321 461,382,988 855,220,762 384,335,321 470,885,441 461,382,988 1.02059559 1.00000000 0 0 Georgia Power 3300 19,600,000,000 17,795,702,798 3,671,820,738 14,123,882,060 18,470,351,445 3,671,820,738 14,798,530,707 14,123,882,060 1.04776652 1.00000000 1,377,992,226 1,378,063,438 Gulf Power 3350 2,350,000,000 233,036,124 153,311,863 79,724,261 235,000,000 153,311,863 81,688,137 79,724,261 1.02463335 1.00000000 0 0 South Carolina Electric & Gas 3500 0 11,012,327 2,660 11,009,667 11,500,000 2,660 11,497,340 11,009,667 1.04429498 1.00000000 0 0 Total 7 48,950,000,000 18,906,496,096 4,209,470,582 14,697,025,514 19,593,592,207 4,209,470,582 15,384,121,625 14,697,025,514 1,377,992,226 1,378,063,438 2014 Public Utility Digest Georgia Department of Revenue Prepared October 2014 Local Government Services Division Public Utility Section EMC Valuations - 2014 Co Net Indicated Non-Op Non-Op DOR EMC No. Unit Value Gross Return Deductions Net Return Indicated FMV Deductions FMV DOR FMV Indicated Factor DOR Factor Return FMV Alabama Electric Coop. 800 1,431,656,224 50,489 0 50,489 50,489 0 50,489 50,489 1.00000000 1.00000000 0 0 Altamaha EMC 802 46,322,882 46,075,705 1,036,800 45,038,905 46,322,882 1,036,800 45,286,000 45,038,905 1.00548626 1.00000000 0 0 Amicalola EMC 804 90,539,545 89,656,597 2,347,576 87,309,021 90,539,545 2,347,576 88,191,000 88,191,000 1.01010181 1.01010181 552,786 552,786 Blue Ridge EMC 806 113,416,321 63,060,660 276,507 62,784,153 47,308,143 276,507 47,031,000 62,784,153 0.74909030 1.00000000 4,541,475 4,541,476 Canoochee EMC 808 67,610,075 66,313,837 2,157,925 64,155,912 67,610,075 2,157,925 65,452,000 64,155,912 1.02020216 1.00000000 305,486 305,486 Carroll EMC 810 118,082,302 116,006,016 1,959,016 114,047,000 118,082,302 1,959,016 116,123,000 114,047,000 1.01820302 1.00000000 0 0 Central Georgia EMC 812 106,866,733 102,898,963 1,268,054 101,630,910 106,866,733 1,268,053 105,598,000 105,598,000 1.03903429 1.03903429 1,710 1,710 Coastal EMC 814 48,477,404 48,131,258 655,873 47,475,385 48,477,404 655,873 47,821,000 47,475,385 1.00727988 1.00000000 0 0 Cobb EMC 816 332,804,845 369,268,220 11,114,631 358,153,589 332,804,845 8,600,160 324,204,000 358,153,589 0.90520941 1.00000000 2,240,882 2,240,882 Colquitt EMC 818 127,665,897 135,433,623 3,233,229 132,200,394 127,665,897 3,233,229 124,432,000 132,200,394 0.94123774 1.00000000 0 0 Coweta Fayette EMC 820 154,654,623 160,497,535 2,117,700 158,379,835 154,654,623 2,117,700 152,536,000 158,379,835 0.96310241 1.00000000 2,905,673 2,905,673 Dalton Utilities 822 148,000,000 147,642,444 0 147,642,444 148,000,000 0 148,000,000 147,642,444 1.00242177 1.00000000 0 0 Excelsior EMC 824 36,240,762 36,088,018 924,825 35,163,193 36,240,762 924,825 35,315,000 35,163,193 1.00431721 1.00000000 0 0 Flint EMC 826 203,440,234 203,168,096 3,628,750 199,539,346 203,440,234 3,628,750 199,811,000 199,539,346 1.00136141 1.00000000 0 0 GEORGIA TRANSMISSION 830 1,611,456,595 1,611,456,595 885,120 1,605,343,156 1,606,228,276 885,120 1,605,343,156 1,605,343,156 1,605,343,156 1.00000000 0 0 Grady EMC 832 47,695,348 45,629,001 1,586,725 44,042,276 47,695,348 1,586,725 46,108,000 46,108,000 1.04690321 1.04690321 0 0 Greystone Power Corp.