ML19263C066

From kanterella
Jump to navigation Jump to search
Forwards Financial Info Requested by Nrc:Monthly Income Statements for Oct,Nov & Dec 1978.Form 10-K Will Be Forwarded When Available
ML19263C066
Person / Time
Site: Pilgrim, 05000471
Issue date: 01/29/1979
From: Rhonda Butler
BOSTON EDISON CO.
To: Parr O
Office of Nuclear Reactor Regulation
References
NUDOCS 7902020262
Download: ML19263C066 (26)
v • d • e


Text

e 4 BOSTON EDISON COMPANY DENER AL OFriCES B00 BOVLaTON STR EET EDSTON, M ASS ACNUSETT A 02199 RosEm? M. BuTLEm MANAGER NWCLE AR DSDJECTS DEPARTMENT January 29, 1979 Mr. Olan D. Parr, Chief Light Water Reactors Branch #3 Division of Project Management Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Comis_sion Washington, D.C. 20555 Review of Financial Qualifications:

Submission of Additional Information

Dear Sir:

Pursuant to the recent request of Mr. Karlowicz, we hereby submit the following information:

1. Monthly income statements for the months of October, November and December, 1978.
2. The Form 10-K for the 1978 year is not available at this time. We will forward a copy when it is available in March.
3. No Form S-7 was published for the recent $95 million issuance, because this was a private offering, not a public offering. However, we have enclosed portions of an offering circular which describes this issuance.

Very truly yours, l'% i

( {, <?

Attachments WRG/cac cc: Mr. M. Karlowicz w/a

] 903_Odo1Co ?.__

,ocasun cusaun uuneAnr seascnens ur thount ruH NuhlH UP ULluutK 19(8

', . ~ , AC TUAL CURRENT MONTH ,

_ ACTUAL YEAR TO DATE THIS YEAR LAST Y E, - INC THIS YEAR LAST Y INC

!QPERATINGREVENUES ELECTRIC 47,197,777.85 49,749,614.22 (5.1) 476,394,511.43 4 4 7,18 0,4T S . 31 6.5 ST EAM 1,679,341.92 1,895,836.67 (11.4) 29,618,224.78 32.456,920.72 (8.7)

OTHER _

946,987.46 1,020,233.87 (7.2) 9,666,702.13 10,382,804.07 (6.9' TOTAL 49,824,607.23

  • 52,665,684.76 * (5.4) 515,679,438.34
  • 490,020,203.10
  • 5.2 OPERATING EXPENSES OPERATION 21,629,640.74 24,304.727.70 (11.03 265,860,219.14 258.597,670.43 2.8 MAINTENANCE 2.779,799.83 2,515,973.09 10.5 27,467,409.89 27.900,555.72 (1.61 SUSTOTAL 24,409,440.57 26,820,700.79 (9.03 293.321,629.03 286,498,226.15 2.4 DE PREC I AT ION 3,823,479.00 3,728,000.00 2.6 38,234,787.00 37,280,000.00 2.6 TAXES 12,398,127.53 12,353,181.82 .0 105,629,636.77 95,525,887.58 10.6 TOTAL 40.631,047.10
  • 42,941,882.61 * (5.41 437,192,052.80
  • 419,304,113.73
  • 4.3 NET OPERATING INCOME 9,193,560.13
  • 9,723,802.15 * (5.5) 78,487,385.54
  • 70,716.089.37
  • 11.0 OTHER INCOME NONUTILITY OPERATIONS (289.30) (2,390.22) 980.27 (23,740.34)

NON-OPER RENTAL INCOME (2,800.00) (16,549.65) (166,298.96) (48,824.72)

INTEREST & OIV INCCME (.00) (.00) 1,936.55 1,827.20 6.0 ALLOW FUNDS OUR. CONST 425,971.00 60,046.06 609.4 3,884,321.00 495,217.30 684.4 EQU. IN EARN. OF SUB.C 53,288.12 45,526.23 17.0 376,449.15 378,235.83 (.5)

MISC OTHER (112,753.93) 7,083.19 (82,402.31) 78,781.06 GAIN ON SALE (.00) (.00) 7,497.49 142,975.40 (94.8)

TOTAL

~

363,415.89

  • 93,715.61
  • 287.8 4,022,483.19
  • 1,024,471.73
  • 292.6 TOTAL INCOME 9,556,976.02
  • 9,817,517.76 * (2.7) 82,509,868.73
  • 71,740,561.10
  • 15.0 MISC INCOME DEDUCTIONS MISC AMORTIZATION 12,834.05 12,567.83 2.1 127,562.08 120,145.38 6.2 OTHER INCOME DEDUCTS 2,652.32 3.010.17 ( 11.93 110,087.83 58,203.10 89.1 T AXES APPL. OTHER INC. 5,000.00 32,400.00 (84.6) 171,610.31 324,000.00 (47.0)

MISC LOSS ON S AL E .00 .00 .00 20,115.88 ( 100.01 TOTAL _

20,486.37

  • 47,978.00 * (57.33 409,260.22
  • 522,464.36 * (21.7)

INC BEFORE INT CHRGS 9,536,489.65

  • 9,769,539.76 * (2.4) 82,100,608.51
  • 71,218,096.74
  • 15.3 INTEREST CHARGES INT ON LONG TERM DEBT 4,330,766.94 3,993,649.59 8.4 40,849,252.42 39,568,385.17 3.2 OTHER INTEREST 678,633.06 547,093.71 24.0 8,106 961.51 5,817,284.99 40.9 AFU0C 8ORROWED FUNDS (993,931.00) (740.568.72) (9.063,414.00) (6,107,667.64)

AMORT OF NET PREMIUM 2,804.31 2,765.43 1.4 27,896.56 32,194.89 (13.41 TOTAL 4,018,273.31

  • 3,802,940.01
  • 5.7 40,010,696.49
  • 39,310,197.41
  • 1.8
NET INCOME 5,518,216.34
  • 5,966,599.75 * (7.51 42,089,912.02
  • 31,907,899.33 * - 31.9 PREFERRED DIVIDENDS 460,200.00 460,200.00 .0 4,594,466.67 4,594,466.67 .0 l PREFERENCE DIVIDENDS 808,791.66 808.791.66 .0 8,162,916.66 8,162,916.66 .0 BAL. AVA ILABLE COMMON 4.249,224.68
  • 4,697,608.09 * (9.51 29,332,528.69
  • 19,150,516.00
  • 53.2 COMMON DIVIDENDS 2,345.348.33 2,345,348.33 .0 23,453,483.33 22,233,483.33 5.5 BALANCE AFTER DIVS ~ 1,903,876.35
  • 2,352,259.76 * (19.1) 5,879,045.36 * (3,082,967.33)*

EARNINGS PER SHARE $0.37 $0.41 $2.54 $1.79 NUMBER OF SHARES 11,534,500 11,534,500 11,534,500 (a)10,715,145 (a) Weighted Average 1.

BOSTON EDISON COMPANY STATEMENT OF INLOMt-LUNI!NUtu MUNIH Ut ULaucen 19so

- - _ ACTUAL CURRENT MONTH ACTUAL YEAR TO DATE

, THIS YEAR _ LAST YEA. INC _THIS YEAR LAST YE INC OPERATIONS FEDERAL INCOME INCOME TAX 1,310,632.00 .00 4,309,542.53 .00 DEFERRED INCOME TAXES ACCELERATED AMORT. .00 .00 .00 .00 LIBERALIZE 0 CEPREC 2,269,099.00 5,220,643.00 (56.5) 25,302,613.52 26,206,797.00 (3.5)

OTHER .00 .00 .00 .00 797,468.00 (134,000.00) 1,541,437.00 (1,340,000.00)

INVEST. TAX CR A0JS TOTAL INCOME 4,377,199.00 5,086,643.00 ( 13.93 31,153,593.05 24,866,797.00 25.3 INS.CONTRI8 ACT 141,258.66 159,023.54 (11.2) Z ,70 2,811. 56 2,508,034.04 7.8 UNEMPLOYMENT TAX ACT 407.63 110.16 270.0 117.096.46 87,336.18 34.1 2,500.00 1,231.25 103.0 25,000.00 148,952.75 (83.2)

HIGHWAY USE TOTAL FEDERAL 4,521,365.29 5,247,007.95 ( 13. 8 ) 33,998,501.07 27,611,119.97 23.1 STATE CORPORATE FR ANCH ISE 330,210.00 490,237.00 (32.6) 2,384,736.70 2,456,762.00 (2.9 MOTOR EXC ISE 9,500.00 9,500.00 .0 95,000.00 73,550.00 29.2 EMPLOYMENT SECURITY 1,873.60 1,122.87 66.9 425,807.64 492,009.54 (13.5 SALES AND USE .00 .00 .00 .00 DEFERRE0 CORP. FRAN. 330,209.00 268,314.00 23.1 2,384,735.70 1,361,021.00 75.2 TOTAL STATE 671,792.60 769,173.87 (12.7) 5,290,280.04 4,383,342.54 20.7 LOCAL MUNIC IPAL PROPERTY 7,204,969.64 6,317,000.00 13.0 66,340,855.66 63,531,425.07 4.4 TOTAL 12,398,127.53 12,393,181.82 .0 105,629,636.77 95,525,887.58 10.6 OTHER INCOME FEDERAL INCOME TAXES .00 .00 .00 .00 EXTRA 0R0! NARY ITEM .00 .00 .00 .00 DEFERRE0 .00 .00 .00 .00 STATE .00 .00 .00 .00 CORP FR ANCHI SE .00 .00 .00 .00 DEFERRED CORP. FRAN. .00 .00 .00 .00 LOCAL .00 .00 .00 .00 MUNIC IPAL PROPERTY 5,000.00 32,400.00 (84.6) 171,610.31 324,000.00 (47.0 TOTAL 5,000.00 32,400.00 (84.6) 171,610.31 324,000.00 (47.0 TO T AL TAXES 12,403.127.53 12,425,581.82 1.23 105.801,247.08 95,849,887.58 10.4 lA.

$0STON ED '

CN COMPANY STATEMENT OF INCOME FOR MOP OF NOVEM8ER 1978

- ACTUAL CURRENT MONTH ACTUAL YEAR TO D AT E THIS YEAD LAST YEAR INC THIS YEAR LAST YEAR INC PER ATING REVENUES ELECTRIC 41,917,253.86 43,532,225.26 (3.7) 518,311,765.29 490,712,703.57 5.6 STEAM 2,541,879.72 2,256,762.09 12.6 32,160,104.50 34,713,682.81 (7.4)

OTHER 1,357,423.87 1,021,539.97 32.9 11,024,126.00 11,404,344.04 (?.3)

TOTAL 45,816,557.45

  • 46,810,527.32 * (2.11 561,495,995.19
  • 536,830,130.42
  • 4.0 PER ATING EXPENSES OPERATION 21,093,802.53 24,6E5,651.22 (14.6) 286,954,02).67 283,293,321.65 1.3 MAINTENANCE 2,681,729.65 3,0 8 3. 6 81. T. (13.01 30,149.139.54 30,084.237.49 (7.7)

SU8 TOTAL 23,775,532.18 27,769,332.99 (14.4) 317,103,161'.21 314,267,559.14 .9 DEPRECI AT ION 3,823,479.00 3,72E.C00.00 2.6 42,058,266.00 41,009,000.00 2.6 TAXES 10,300,498.72 8,647,596.76 10.1 115,930,135.49 104,173,484.34 11.3 TOTAL 37,899,509.90

  • 40,144,929.75 * (5.6) 475,091.562.70
  • 459,440,043.48 * .4 NET OPERATING INCCME 7.917,047.55
  • 6,665,597.57
  • 18.8 86,404,433.09
  • 77,381,686.94
  • l'./

THER INCOME NCNU T IL ITY OPERATIONS (1,664.41) (2,547.40) (694.14) (26,297.74)

NON-OPER RENTAL INCOMF (.00) (8,042.98) (166,298.96) (56,967.70)

INTEREST E DIV I NC CM E (.01) (.00) 1,936.5; 1,927.20 6.0 ALLOW FUN 05 DUR. CCNST 457,317.00 63,591.06 619.3 4,341,639.00 558,799.36 677.0 EQU. IN E AR N. OF SUB.C 69,359.91 32,520.68 113.3 445,009.06 410,756.51 F.5 MISC OTHER (5,798.03) 8,078.04 (89,200.34) 96,959.10 GAIN ON S ALE (.00) (.00) 7,497.49 142,975.40 (94.R)

TOTAL 510,214.46

  • 93,589.40
  • 454.8 4,541,607.65
  • 1,118 061.13
  • 706.?

TOTAL INCOME 8,436,262.01

  • 6,159,196.97
  • 24.8 90,946,130.14
  • 78,499,749.17
  • 15.9 ISC INCOME DEDUCTIONS MISC AMOR T IZ AT ION 12,834.05 13,929.10 (7.91 140,396.13 134,074.48 4.7 OTHER INCOME DEDUCTS 675.04 2,671.58 (74.7) 110,762.87 60,974.69 82.0 TAXES APPL. OTHER INC. 5,000.00 32,400.00 (84.6) 176,610.31 356,400.no (50.4)

MISC LOSS ON S AL E .00 .00 .00 20.115.89 ( 100.7)

TOTAL 18,509.09

  • 49,000.68 * (62.21 427,769.31
  • 571,465.04 * (25.1)

INC BEFORE INT CHPGS 8,417,752.92

  • 6,710,186.29
  • 25.4 90,51R.?61.43
  • 77,o29,?83.03
  • 1. 6 . '

NTEREST CHARGES INT ON LONG TERM DE8T 4,348,103.17 3,994,599.60 8.8 45,197,355.59 43,562,984.77 3.8 OTHER INTEREST 973,868.60 751,659.28 29.6 9,170,830.11 6,568,o44.27 30.6 AFUDC BORROWED FUNCS (1,067,074.00) (704,166.72) (10,130,499.00) (6,991,934.36) 4 AMCRT 00 NET PREMIUM 2,804.31 1,476.62 89.9 30,7no.87 33,671.51 (8.8)

TOTAL 4,257, 702.08

  • 3,963,568.78
  • 7.4 44,268,'oP.57
  • 43,2T3.r66.19
  • 2.3 ET INCOME 4,16n,050.84
  • 2,746,617.51
  • 51.5 46,249,962.96
  • 34,654,516.84 * '3.5 PREFERRED DIVIDENDS 453,766.66 45E,766.66 .0 5,053,233.33 5,053,233.33 .9 PREFEPENCE CIVIDENCS 808,741.68 8CE,701.68 .0 8,971,708.34 8,971,708.34 .q_

AL. AVAILABLE CCMMCN 2,992,492.50

  • 1,479,059.17
  • 95.6 32,225,0?l.19
  • 20,629,575.17
  • 5 6. '

COMMON DIVIDENOS 2,345,348.33 2,345,348.33 .0 25,798,83).66 74,578,931.66 5.0 ALANCE AFTER DIVS 547,144.17 * (e66,289.16)* 6,426,189.53 * (1,949,256.49)* __

Earn'ings Per Share SU.25 40.13 S2./9 $ 1. '36 umber of Shares 11,534,500 11,534,500 11,534,500 10,789,632 1.

BOSTON, 71 SON COMPANY STATEMENT OF INCOME-CONTINU MCNTH CF NOVEMBER 1978

- ACTU AL CUR RENT MONTH ACTU AL YE AR TO DAT E 12-15-7:

_THIS YEAR _LAST YEAR INC _THIS YEAR L AST Y E AR INC

. OPERATIONS FEDERAL INCOME l

, INCOME TAX 936,567.00 .00 5,246,109.53 .00 I DEFERRED INCOME TAXES I ACCELEPATED AMODT. .00 .00 .00 .00 LIBER ALIZED CEPDEC 1,621,481.00 2,205,587.00 (26.5) 26,924,004.52 29,412,384.00 (5.2) i

OTHER .00 .00 .00 .00 523,914.00 (134,000.00) 2,065,351.00 (1,474,000.nn) l INVEST. TAX CR A0JS 3,081,962.00 2,0 71,5 e 7. 00 48.8 34,235,555.05 26,938,384.00 24 1 l TOTAL I NC OM E I NS . CONT R I B ACT 110,576.23 95,792.52 15.4 2,813,387.79 2,603,826.56 e.0 517.56 11.66
  • 117,614.02 87,347.84 34.7 i UNEMPLOYMENT TAX ACT 2,500.00 680.00 267.6 27,500.00 149,632.75 (81.6) i HIGHW AY USE TOTAL FEDERAL 3,195,555.79 2,168,071.18 47.4 37,194,056.86 29,779,191.15 24.9
STATE
CORPORATE FRANCHISE 236,889.00 206,045.00 15.0 2,6?1,625.70 2,662,807.00 (1.5)

, MOTOR EXCISE 9,500.00 20,844.31 (54.41 104,500.00 94,394.31 10.7

' 2,282.20 574.03 297.6 428,089.84 492,583.57 (13.1)

EMPLOYMENT S ECUR ITY

. SALES ANC USE .00 .00 .00 .00 OEFERRED CORP. FRAN. 236,889.00 115,078.00 105.9 2,621,624.70 1,476,099.00 77.6 l 5,775,840.24 4,725,883.9e 22.2 i TOTAL STATE 485,560.20 342,541.34 41.8 LOCAL 6,619,382.73 6,136,984.24 7.9 72,960,238.39 69,668,409.31 4.7 MUNICIPAL PRCPERTY TOTAL 10,300,498.72 8,647,596.76 19.1 115,030,135.49 104,113,484.34 11.3 0THER INCOME FEDERAL I NCOME T AXES .00 .00 .00 .00 EXTRAGRDINARY ITEM .00 .00 .00 .00 DEFERPED .00 .00 .00 .00 STATE .00 .00 .00 .00 CODP FRANCHISE .00 .00 .00 .00 DEFERRED CORP. FRAN. .00 .00 .00 .00 LOCAL .00 .00 .00 .00 5,000.00 32,400.00 (84.61 176,610.31 356,400.00 (50.41 MUNIC IP AL PROPERTY

. TOTAL 5,000.00 32,400.00 (84.61 176,610.?). 356,400.00 (59.43 r0TAL TAXES 10,305,498.72 8,679,996.76 18.7 116,106,745.90 104,529,994.34 11.1 _

  • IN EXCESS OF 999.9 PERCENT lA.

BbSTON ED. 9N COMPANY STATEMENT OF I NC OME FOR MOB OF DECEMBER 1978 ACTUAL CURRENT MONTH ACTU AL YEAR TO DATE

' THIS YEAR LAST YEAR INC THIS YEAR LAST YEAR INC PERAT ING REVENUES 47,059,230.11 47,322.053.24 (.6) 565,370,995.40 538,034,756.81 5.1 EL ECT RIC STEAM 3,420,631.26 4,103,193.67 (16.61 35,580,735.76 38,816,876.48 (8.3) 1,461,741.20 1,120,650.04 30.4 12,485,867.20 12,524,994.08 (.1)

OT HER TOTAL 51,941,602.57

  • 52,545,896.95 * ( 1. 2 ) 613,437,598.36
  • 589,376,627.37
  • 4.1 PER AT IN G EXPENSES 28,963,782.56 29,116,164.04 (.5) 315,917,804.23 312,399,485.69 1.1 OPERATION 2,662,509.52 2,674,960.73 f.5) 32,811,649.06 33,659,198.22 (2.51 MAINTENANCE SUBTOTAL 31,626,292.08 31,791,124.77 ~(.5) 348,729,453.29 346,058,683.91 .8 DEPRECIATION 3,877,534.84 3,805,692.64 1.9 45,935,800.84 44,813,692.64 2.5 TAXES __10,264,537.56 9,544,612.18 7.5 126,194,673.05 113,718.096.52 11.0 T OT AL 45,768,364.48
  • 45,141,424.59
  • 1.4 520,859,927.18
  • 504,590,473.07
  • 3.2 6,173,238.09
  • 7,404,467.36 * (16.61 92,571,671.18
  • 64,786.154.30
  • 9.2 NET OPERATING INCOME THER INCOME (4,459.34) 1,165.64 (5,143.48) (25,122.10)

NONUT IL ITY OPERATIONS NON-OPER RENTAL IN COM E (5,500.00) (1,276,341.38) (171,798.96) (1,333,209.08)

I NT ER ES T C OIV INCOME (.00) (.00) 1,936.54 1,827.20 6.0 (75,673.00) (323,045.20) 4,265,965.00 235,753.16

  • ALLOW FUNDS DUR. CONST 96,158.64 (44.5) 499,168.00 506,915.15 (1.5)

EQU. IN EARN. OF SUB.C 53,358.94 56,601.92 MISC OT HER (69,923.37) (30,257.18) (158,123.71)

GAIN ON SALE (.00) (.00) 7,497.49 142,975.40 (94.8)

(102,196.77)* (1,532,319.48)* 4,439,500.88 * (414,258.35)*

T OT AL TOTAL INCOME 6,071,041.32

  • 5,8 72.14 T. 8 8
  • 3.4 97,017,172.06
  • 84,371,895.95
  • 15.0 ISC INCOME DEDUCTIONS MISC AMORTIZATION 12,834.05 12,639.50 1.5 153,230.18 146,713-98 4.4 OTHER INCOME DEDUCTS 9,660.72 9,841.30 (1.8) 120,423.59 70,715.98 70.3 2,872.02 33,848.76 (91.5) 179,482.33 390,248.76 (54.0)

T AX ES APPL. OTHER INC.

HISC LOSS ON S AL E .00 .00 .00 20,115.88 (100.0) 25,366.79

  • 56,329.56 * (55.0) 453,136.10
  • 627,794.60 * (27.8)

T OT AL INC BEFORE IN T CHRGS 6,045,674.53

  • 5,815,818.32
  • 4.0 96,564,035.96
  • 83,744,101.35
  • 15.3 INTEREST CHARGES INT ON LONG TERM DEBT 4,588,891.44 3,994,274.60 14.9 49,786,247.03 47,557,259.37 4.7 OT HER INTEREST 939,132.62 812,399.00 15.6 10,109,962.73 7,381,343.27 37.0 AFUDC 8ORROWED FUNDS (2,667,405.00) (1,939,837.55) (12.797,893.00) (8,831,671.91) 3,471.01 4,054.27 (14.4) 34,171.88 37,725.78 (9.4)

AMORT OF NET PREMIUM TOTAL , 2,864,090.07

  • 2,87C,890.32 * (.2) 47,132,488.64
  • 46,144,656.51
  • 2.1 JET INCOME , 3,181,584.46
  • 2,944,928.00
  • 8.0 49,431,547.32
  • 37,599,444.84
  • 31.5 PRE FERR ED DIVIDENDS 458,766.67 458,766.67 .0 5,512,000.00 5,512,000.00 .0 PREFERENCE DIVIDENDS 808,791.66 808,791.66 .0 9,780,500.00 9,780,500.00 .0 B A L '. AVAILA8LE COMMON 1,914,026.13
  • 1,677,369.67
  • 14.1 34,139,047.32
  • 22,306,944.84
  • 53.0 CO MMO N DIV10 ENDS' 2,345,348.34 2,345,348.34 .0 28,144,180.00 26,924,130.00 4.5 BALANCE AFTER DIVS (431,322.21)* (667,978.67)* 5,994,867.32 6 (4,6L(,235.161*

EARNINGS PER SIIARE $0.17 $0.10 $2.96 $2.06 NUMBER OF SilARES 11,534,500 11,534,500 11,534,500 10,851,704

B'STON ISON COMPANY STATEMEN T GF I NC CME-CCN T I NUF ~ MCNTH OF DECEMBER 1978 AC T UAl r ilR Q F MT MONTH ACTUAL YEAR TO DATE lAST YEAR INC THIS YFAR I a%T YFAR THIS YFAL OPERATIGNS FEDERAL INCCME

  • 22,105,763.00 971,441.00
  • INCOME TAX 16,859,653.47 971,441.00 DEFERRED INCOME TAXES .00 .00 ACC EL ER AT ED AMORT . .00 .00 (22,670,049.00) 4,247,698.00 5,742,335.00 (26.0)

LIBERALIZED DEPREC (22,676,396.52) 10,702,908.00 (65.4) 3,703,955.00 10,702,908.00 (65.4) 3,703,955.00 OTHER 7,469,867.00 12,004,256.00 (37.8) 5,404,516.00 13,478,256.00 (59.9)

INV EST .T AX CR ADJS 37,527,283.00 29,420,940.00 27.6 TOTAL INCOME 3,291,727.95 2,482,556.00 32.6 125,599.72 13.6 2,956,017.10 2,729,426.28 8.3 INS.CCNTRIB ACT 142,629.31 6,583.10 16.0 125,249.34 93,930.94 33.3 U NE MPLOY M ENT T AX ACT 7,635.32 (79.31 (8.160.001 29.306.00 141.472.75 HIGHW AY USE 1.806.00 2,606,578.82 32.1 40,637,855.44 32,385,769.97 25.5 TOTAL FEDER AL 3,443,798.58 STATE 4,585,175.00 2,134,853.00 114.8 CORPOR AT E FR ANCHISE 1,963,549.30 (527,954.00) 24,668.03 102,393.05 119,062.34 114.0)

MOT OR EXCISE (2,106.95) 28,734.95 37,186.31 (22.7) 456,824.79 529,769.88 ( 13. 8 )

EMPLOYMEN T SECUR ITY .00 .00 SALES AND USE .00 .00 905,675.00 1,151,643.00 2,381,774.00 (51.6)

DEFERRED CORP. FRAN. (1,469,981.70) 439,575.34 18.3 6,296,035.84 5,165,459.22 21.9 TOTAL STATE 520,195.60 LOCAL 79,260,781.77 76,166,867.33 4.1 6,300,543.38 6,498,458.02 (3.03 PUN I C I P AL PROPERTY lYMAN UNIT = A .00 .00 STATE INCOME TAXES .00 .00

.00 .00 .00 DEFERRED STATE .00

.00 .00 .00 PROPERTY T AX ES .00

.00 .00 .00 TOTAL WYM AN =4 .00 9,544,612.18 7.5 126,194.673.05 113,718,096.52 11.0 T OT AL OP ER AT ING 10,264,537.56 JTHER INCOME ,

FEDERAL .00 .00

.00 .00 INCOME TAXES .00 .00 EXT RAORD IN ARY I T EM .00 .00

.00 .00 .00 .00 DEFERRED .00 .00 STATE .00 .00

.00 .00 .00 CORP FRANCHISE .00

.00 .00 .00 DEFERRED CORP. FRAN. .00

.00 s .00 .00 tQCAL .00 fS4.0:

2.872.02 33,848.76 (91.5) 179.482.33 390.24R.76 MUNICIPAL PROPER TY 179,482.33 390,248.76 (54.0) 2,872.02 33,848.76 (91.51 TOTAL 114.108.345.28 10.7

_10,267,409.58 9,578,460.94 7.2 126.374.155.38 T OT.AL T AX ES .

  • IN EXCESS OF 999.9 P ERC EN T lA.

i i.

PRIVATE PLACEMENT MEMORANDUtl CONFIDENTIAL I

5100,000,000 BOSTON EDISON COMPANY First Mortgage Bonds Series 0,9.755 Due 2003 This memorandum has been prepared from information obtained from the issuer and from trade and statistical services and other sources which .re deem relieble. We make no representation or warranty as to the accuracy or completeness of such in-formation. This memorandum is submitted in connection with the private placement -

of these securities and may not be reproduced or used for any other purpose. i

(

l Prepared by BLYTII EASTMAN DILLON & CO.

INCORPORATED October 1978

BOSTON EDIS0!! COMPA!!Y TABLE OF CONTENTS Page 110.

1 INTRODUCTION . . . . . . . . . . . . . . . . . . . . . .

. . . . . . . . . . . . . . . . 2 APPLICATION OF PROCEEDS 2

CollSTRUCTIO!I PROGRAM AND FINA!!CIliG . . . . . . . . . . .

5 CAPITALIZATION . . . . . . . . . . . . . . . . . . . . .

Exhibits:

I. Summary of Principal Terms.

II. Form 10-K for The Year Ended December 31, 1977 .

III. Form 10-Q for The Quarter Ended March 31, 1978.

IV. Form 10-Q for The Quarter Ended June 30, 1978.

V. Financial Statements as at September 30, 1978.

VI. Computation of Ratio of Earnings to Fixed Charges.

f

INTRODUCTION Blyth Eastman Dillon & Co. Incorporated has been authorized by Boston Edison Company (the " Company") to arrange the private placement of $100,000,000 of First Mortgage Bonds, Series Q, 9 3/4% due 2003 (the " Series Q Bonds") subject to the required approval of the Company's Board of Directors at its meeting on October 26, 1978 and the Massachusetts Department of Public Utilities.

The Company proposes to issue $60,000,000 of the Series Q Bonds on or about December 19, 1978 and to issue the re-maining $40,000,000 on August 15, 1979 pursuant to purchase and sale agreements which are to be executed for the entire

$100,000,000 of Series Q Bonds prior to the December closing.

The Series Q Bonds will be non-refundable through indebted-ness having a lower interest cost prior to December 15, 1988 and will be entitled to a cash sinking fund designed to provide an average life of 17.2 years. The remaining terms will follow the provisions of the Company's existing Indtn-ture of Trust and First Mortgage dated as of December 1, 1940, as amended (" Indenture"),a summary of which is included in Exhibit I hereafter.

This memorandum has bee,n prepared to describe the Series Q Bonds, the application of proceeds from their sale, the Company's current construction program and fin-ancing plans and the Company's capitalization as(1) at the September pro-30, 1978 and as adjusted. Exhibits include:

posed sunmary of terms relating to the Series Q Bonds; (ii)

Form 10-K for the year ended December 31, 1977, together with the Company's 1977 annual report; (iii) Form 30, 10-Q 1978;Reports (iv) the for the two quarters ended March 31 and June Company's unaudited financial statements for the period ended September 30, 1978; and (v)Each a computation of the of the reports ratio of,to referred earnings to fixed charges.(iv) contains a detailed balance above in (ii), (iii) and sheet, income statements and management's discussion and .

analysis of earnings for the periods covered therein.

Additional information may be obtained by contacting the below-listed personnel at Blyth Eastman Dillon & Co.

Incorporated:

Cornelius B. Prior, Jr. (212) 730-8773 Samuel A. Plum (212) 730-8757 Scott Ketner (212) 730-8823 Robert B. Lindstrom (2?2) 730-87]6 ,

r-k APPLICATION OF PROCEEDS The proceeds received by the Company at the initial closing of the sale of the Series Q Bonds will be applied to the reduction of short-term borrowings incurred in con-nection with extensions, additions and improvements to the Company's plant and properties. The Company's short-term borrowings are expected to aggregate approximately $110,000,000 at the time of the initial closing. The proceeds received at the second closing on August 15, 1979 will be applied to the payment at maturity on that date of a portion of the Company's outstanding First Mortgage Bonds, Series 0, 12 1/2% due 1979 (the " Series O Bonds") .

CONSTRUCTION PROGRAM AND FINANCING The Company is engaged in a continuous construction pro-gram to accommodate existing andConstruction estimated future loads of expenditures the electric and steam systems.

for new plant facilitise totaled approximately $86,500,000 in 1976 and $110,000,000 in 1977, not including an allowance for funds used during construction ("AFUDC") of $7,168,000 in 1976 and $8,814,000 in 1977 Construction expenditures have been estimated to amount to.about $124,000,000 in 1978, not including AFUDC of $16,000,000. As of September 30, 1978 the Company's 1978 construction expenditures amounted to ap-proximately $86,000,000 not including AFUDC of $11,259,000.

During the five years 1973 through 1977 construction expenditures were approximately $517,276,000, not including AFUDC of $49,864,000 and retirements were approximately

$80,223,000. In addition, construction expenditures of ap-prs ximately $40,374,000, not including AFUDC of about

$2,750,000 were made in respect of nuclear fuel during this period. '

The Company's construction program for the period 1978 through 1982 is subj ect to continuing review and adjustment and is currently estimated to be approxir..ately $800,000,000, exclusive of AFUDC of $180,000,000 (based upon assumed rates ranging from 9 7% to 10.0%) and exclusive of any allowance for nuclear fuel or modifications which may be required by regulatory authorities but including allowances of $113,000,000 for escalation of costs.

In addition, during the period 1978 through 1982, funds aggregating $171,888,000 must be provided for sinking fund re-quirements of $8,208,000, maturities of bonds ofSee$88,680,000 Note C of and maturities of term notes of $75,000,000.

Notes to Financial Statements included in the Company's Form 10-K for the year ended December 31, 1977 Fl .

M 9

l.s 1

l.'

r The largest project in the Company's construction program is a second nuclear generating facility, Unit No. 2, at Pil-grim Station. The following table sets forth certain estimates with respect to construction of the Unit, assuming issuance of various Federal, state and local permits necessary to be-gin construction in July, 1979:

Pilgrim Unit No. 2 Company Estimated Share of Estimated l Cost of Capacity and Cost Completion Capacity t Date (MW) Unit Estimated Cost per kW December 1985 1150 $853,000,000(1) 59 026% $742(1 (1) These estimated costs do not include allowances of appro-ximately $219,000,000 for cost escalation through 1985,

$134,000,000 for contingencies (including certain modi-fications which may be required by regulatory authorities),

$685,000,000 for funds used during construction (of which

$435,000,000 applies to the Company), or any allowance for nuclear fuel.

Actual construction expenditures could vary from the esti-mates stated above because of changes in the Company's plans and load forecast, cost fluctuations, licensing delays, and other factors. The Company is continuing to experience increases in costs for construction of new facilities as a result of escalat-ing labor, material and equipment costs and environmental con-siderations. Also, substantial additional expenditures may be required for environmental purposes at the Company's plants.

The complexity of present-day electric utility technology and the time required for the construction of generating facilities and for the completion of the licensing and other regulatory proceedings relating thereto have compelled the -

Company, as well as other electric utilities, to make sub-stantial investments in the construction of such facilities prior to the completion of licensing and regulatory proceed-ings. For example the Company estimates that through the end of August, 1975 its share of the accumulated extenditures related to Pilgrim Un.t No. 2 and estimated cancellation penalty I

costs if construction of the Unit were terminated including would aggre-reimbursement to the gate approximately $141,000,000,for common facilities to be repurchased joint owners of the Unit by the Company.

Hearings before the Nuclear Regulatory Commission (""RC")

commenced during 1975 on the ap,lication for a construction permit for the Unit. Under the NRC's present procedures an operating license for Pilgrim Unit No. 2 can be obtained only when the construction of the Unit has been completed.

There is no assurance that the necessary permits, licenses and authorizations will be issued.

The continuation of the Company's construction program at its present and projected levels depends upo.1 the continued availability of suostantial amounts of outside capital fron.

the issuance of debt and equity securit$es and other financing arrangements. The Company presently anticipates issuing addi-tional permanent securities during 1979; however, the ability of the Company to issue such securities and the type and amount of securities to be so issued are dependent upon a number of factors, including particularly conditions in the securities market.

s The Massachusetts Department of Public Utilities has com-menced a proceeding to enquire into the capacity needs of the Company and the construction program required to meet such needs. The Company is unable at this time to predict the outcome of this proceeding.

S 4-

/isions: 10/26/78 BOSTON EDISON COMPANY Revised Capitalization Table The following table sets forth the capitalization, short-te.rm notes payable, current maturities of long-term debt and nuclear fuel lease obligations of Boston Edison Company as of September 30, 1978 and as adjusted for the sale of the Series O Bonds. It is important to note that the capitalization table below incorporates certain revisions to the long and short-term debt sections as originally presented on page 5 of the October 1978 private placement memorandum and should consequently be substituted in its entirety for the capitaliza-tion table included in the placement memorandum. .

The revisions that are reflected below consist of:

(i) the correction of the first mortgage bond debt and total long-term debt outstanding at September 30, 1978 from $385,040,000 to $446,680,000 and from $481,400,000 to $541.680.000, respectively (ii) the adjustment of the as adjusted capitalizatio.. to reflect the aforementioned corrections, the change in the size of the Series O Bond principal amcunt from $100,000,000 to $95,000,000, and the revision in the size of the initial takedown and delayed delivery amounts from $60,000,000 to $50,000,000 and from S40,000,000 to $45,000,000, respectively. -

Actual An Adiusted (000)  % (000)  %

Long-Term Debt:

Pirst Mortgage Bonds $446,680 $541,680 Notes Payable to Banks 75,000 75,000 Secured Notes 21,360 21,360 Total Long-Term Debt 543,040 50.9% 638,040 54.9% .

Preferred Stock 82,969 7.8 82,969 7.2 Preference Stock 84,631 7.9 84,631 7.3 Common Equity 355,572 33.4 355,572 30.6 Total Capitalization 6,212

$ 1_,_Of1 J1,l_61_,212,

[00.0% 1_00.0%

Nuclear Fuel Lease $39,506 S39,506 h'tes Payable - Short-Term 79,180 29,180 Current Maturities of Long-Term Debt 61,640 16,640

~ . . .. n n Revised Summary of Principal Terms BOSTON, EDISON COMPANY First Mortgage Bonds

  • Series Q, 9.75% due 2003 .

Issue: First Mortgage Bonds, Series Q, 9.75%

due December 15, 2003 (the " Series O B o nd s "). The Series O Bonds will be issued under and secured by the Indenture of Trust and First Mortgage dated as of December 1, 1940, as amended (the " Indenture").

Amount: $95,000,000 Use of Proceeds: Repayment of outstanding short-term bank

, borrowings and the partial repayment of

$60,000,000 of Series O Bonds due

. August 15, 1979.

Delive ry: Initial takedown of $49,500,000 in December, 1978 with delayed takedown in August, 1979, of $45,500,000.

Final Maturity: December 15, 2003 (25 years)

Inte re s t: 9. 75% per annum, payable semi-annually on December 15 and June 15. Initial inte res t payment June 15, 1979 or December 15, 1979, accrued from date of issue.

Price: 100%

Sale: Private placement to selected institutional investors without registration under the Securides Act of l933.

Trustee: State Street Bank and Trust Company, Boston, Massachusetts.

Mandatory Sinking Fund: Annual payments of $2,375,000 commencing Decembe r 15,1983, $3,800,000 commencing Decembe r 15, 199 0, $6, 93 5,000 commencing December 15,1996 and $7,030,000 at ma turity.

or:soa m 6, Y r l4,1

~

n Optional Sinking Fund: The Company shall have the right in any year to redeem at par an additional amount of the Series O Bonds not to exceed the amount of the annual mandatory sinking fund redemp-tion payment. If not exercised in any year, the right is not cumulative to any future year. The maximum principal amount of Series O Bonds redeemable hereunder shall be limited to $23,750,000..

Average Life: Operation of the mandatory sinking fund will result in an average life of approximately

17. 2 years. If full use is made in each year of the optional sinking fund payment, the average life of the issue would be reduced to approximately 13.9 years and the final maturity would be 2000.

Redemption: Except as set forth in the following paragraph, the Series O Bonds will be redeemable, in whole or in part for purposes other tha:s the Sinking Fund, at the option of the Company during the twelve month period beginning December 15, 1978 on at least au days' notice at the initial price of 109.75% of the principal amount of the Series O Bonds, plus accrued interest, ani declining ratably per year to 100% in the final year. The Series O Bonds will be redeemable at tear plus accrued interest at any time through the application of certain insurance, eminent domain, release, maintenance or other moneys from time to time held by the Trustee.

Call Protection: No Series O Bonds may be redeemed prior to Decembe r 15, 1988, directly or indirectly, from the proceeds of or in anticipation of any refunding operation involving the incurring of debt which has an interest rate or interest cost to the Company, computed in accordance with generally accepted financial practices, of le s s than 9.7 5% pe r annum. -

Security and Priority: The Series Q Bonds will be secured by the Indenture equally with the bonds now outstand-ing under the Indenture and any additional bonds which may be issued thereunder. The Series Q Bonds will have priority as to security over anf funded debt, other than such outstanding bonds and any such additional bonds and except as hereinafter stated with respect to after-acquired property. The Indenture will create, as security fot such outstanding bonds and for any such additional bonds, a first mortgage (except for current and future taxes or assessments, undeter-mined liens and charges incidental to construc-tion, easements and restrictions of record and encumbrances stated in the granting clauses of the Indenture) on all franchises and property now owned by the Company (subject to the specific exceptions hereinafter referred to) and on all the rents, earnings, incomes, issues and profits thereof, but prior to default the Company may retain possession of the mortgaged property and take the rents, earn-ings, incomes, issues and profits thereof.

The Indenture contains after-acquired property clauses which will be effective as to the tangible personal property covered thereby when acquired by the Company. Insofar as such clauses apply to after-acquired property other than tangible personal property, they may be effective only upon compliance with the pro-visions of the Indenture which require the Company, upon request of the Trustee, to subject to the lien of the Indenture any and all property intended to be included in the mortgaged property under the provisions of said after-acquired property clauses. Ce rtain property is specifically excepted in the grant-ing clauses of the Indenture consisting princi-pally of the following: the last day of the term of any leasehold estate; cash receivables and securities; and materials, merchandise and supplies held for sale in the ordinary course of business. The Company may acquire and own properties subject to mortgage or other lien, whether or not contemporaraneously created to secure a part of the purchase price thereof, including property disposed of in accordance with the release provisions of the Indenture and subsequently reacquired. Certain turbine generators and related facilities and equipment were disposed of in accordance with such release provisions and were subsequently

^ .

reacquired by the Company subject to a mortgage and security interest therein which secures the Company 11-1/4% Secured Notes described in note B of Notes to Financial Statements included in the Company's Form 10K for the year ended December 31,,1977.

Any purchaser of the mortgaged property at foreclosure sale would under the present law have to qualify to own and operate the property of the Company as an electric utility. Licenses granted by the Nuclear Regulatory Commission may not be transferred without its consent and, as a result, in the event of default under the Indenture, neither the Trustee nor any other transferee of the Pilgrim Station may operate thr t Station unless an appropriate Nuclear Regulatory Commission license is either issued or transferred to such transferee. No such permit or license may be granted unless the Nuclear Regulatory Commission is satisfied

. that, among other things, there is reasonable aarurance that the health and safety of the public will not be in danger.

Issue of Additional Bonds- In addition to the bonds presently outstanding under the Indenture and the Series Q Bonds, additional bonds of different series may be issued under the Indenture to an amount which is not limited, except that additional bonds may be issued only:

(1) in an aggregate principal amount not exceeding the following percentages of the excess of cost or the fair value (whichever be less) of certain kinds of additional property, as defined in the Indenture, constructed or acquired by the Company subsequent to December 1, 1940, and subjected to the lien of the Indenture as a first mortgage thereon, over the original cost of retire'd property, namely: 66-Z/3% in the case of electric or steam pronerty and 50% in the case of certain specially classified property to be used in the distribution of cold or gas (as limited in the Indenture) or in the telephone or wired radio public utility

n btIsinesses -- the amount of outstand-ing bonds issued and money withdrawn on the basis of specially classified property not to exceed 15% of the amount of outstanding bonds issued and money withdrawn otherwise than on the basis of specially classified property; (2) in an aggregate principal amount equal to money deposited with the Trustee for that purpose; or (3) in an aggregate principal amount equal to the aggregate principal amount of other bonds of any series issued under the Indenture and retired; and only while the Company is not in default.

Such additional bonds issued on the basis of additional property or deposited money or, in certain circumstances, in substitution for other bonds bearing a lower rate of interest may be issued only if the net earnings of the Company before depreciation, but after taxes of all kinds, such net earnings being defined in the Indenture, for any 12 consecutive calen-dar months within the 15 calendar months next preceding the application have been equal to not less than twice the amount of the annual interest charges on bonds of all eeries issued under the Indenture, and on all obligations secured by the lien thereof or by any lien prior thereto, outstanding at the time of the applica-tion and on the additional bonds applied for.

The Company's earnings coverage so computed for the twelve months ended September 30, 1978, and after giving effect to the sale of the Series Q Bonds, would be 3.29.

The Company while not in default may withdraw money deposited with the Trustee (except sinking fund money) on the basis of certain kinds of additional property constructed or acquired by the Company subsequent to Decem-ber 1,1940, to an amount equal to the amount of additional bonds which might have been issued against such additional property, computed in substantially the same manner as between electric or steam and specially classified property, but only if net earnings

~5-

n meet the requirements stated above. The Company. may also withdraw such money to an amount equal to the aggregate principal amount of bonds then being retired for that

. purpose. The Series Q Bonds will be issued on the basis of additional property. As of Decembe r 31, 1977, the net amount of addi-tional property available for the issuance of bonds was approximately $481,000,000.

Since December 31, 1977 property additions have exceeded retirements.

Maintenance Covenant: The Indenture contains a general covenant and further provides that the Company will in every third calendar year cause an examination of its property to be made and to be evidenced by an Independent Engineer's Certificate, stating whether or not its property has been maintained in accordance with such covenant, and, if not, the amount of the deficiency. The Company will, within 30 days from the date of the receipt by the Trustee of each such certi-ficate, deposit with the Trustee a sum of money equal to the amount of such deficiency, if any, which money shall be paid over to the Company from time to time to the extent of the amounts actually expended by the Company for repairs, renewals or replacements to make good such deficiency. Unless so paid to the Company within five years, such money shall be subject to application in the manner provided in the Indenture, which includes the purchase and/or redemption of outstanding bonds; provided, however, that the principal amount of Series O Bonds redeemed at any one time shall not exceed an amount which bears the same ratio to the total principal amount of all bonds redeemed at such time as the principal amount of Series O Bonds outstanding immediately before such redemption bears to the total principal amount of all bonds then outstanding.

Modification or Amendment The Indenture may be modified or amended, of the Indenture: -without the consent of the bondholders, to add restrictions on the issue of additional bonds or additional covenants by the Company; to convey additional property to the Trustee or correct or amplify the description of the mortgaged property; or to correct ambiguities, defects p n or inconsistencies in the Indenture or any supplemental indenture. The Indenture may be modified or amended in any respect upon 30 days' published notice and notice by registered mail to registered owners of bonds of all series and with the written approval of holde,rs of 85% in principal amount of the bonds of all series at the time outstanding; except that, among other things, no such modification or amendment shall permit any change in the principal amount or premium, any extension of the maturity, the reduction of the rate or

. extension of the time of payment of interest or in any way affect or impair the obligations of the Company in respect of principal or interest on any bond without the written consent of the holder thereof, or affect the rights of one or more series of bonds differently from that in which the rights of other series are affected except with the written consent of holders of 85% in principal amount of the bonds of each series so affected then outstanding, or permit the creation, except as expressly authorized in the Indenture, of any mortgage or other lien prior to or on a parity with the lien of the Indenture or impair the lien or security thereof, or change any of the percen-tages of holders of bonds required for any action or consent under the Indenture.

Defaults: The Indenture defines the following as " events of default":

(a) default in the payment of any installment of interest on any of the bonds or in the payment of any sinking fund installment in respect of any of the bonds, if such default shall continue for 60 days; (b) default in the payment of the principal or premium on any of the bonds; (c) default by the Company in the performance or observance of any cove-nant, agreement or condition, if such default shall continue for 90 days after written notice to the Company by the Trustee or to the Company and the Trustee by holders of not less than 25% in principal amount of the bonds then outstanding, or, if the Company aball waive the same, then forthwith upon such notice; or (d) certain events such as bank-ruptcy, insolvency or reorganization.

If one or more events of default shall happen and be continuing, the Trustee shall, within 90 days after occurence thereof (not including any periods of grace), give to the bondholders notice of all defaults known to the Trustee, unless such defaults shall have been cured before the giving of such notice, provided that, except in case of default in the payment of principal, premium or interest on any of the bonds, or in the payment of any sinking fund installment, the Trustee shall be pro-tected in withholding such notice if and so long as the board of directors, the executive committee or a trust dommittee of directors and/or trust officers of the Trustee in good faith determine that the withholding of such notice is in the interest of the bondholders.

In case of default (1) the Trustee, or the holders of 25% in principal amount of the bonds of all series at the time outstanding, may accelerate the maturity thereof, and (2) the Trustee may, and upon the written request of the holders of '

a majority in principal amount of the bonds of all series then outstanding shall, enforce the lien of the Indenture. Prior to any sale of the mortgaged property pursuant to the Indenture, the Trustee may, and upon request of the holders of a majority in p-. acipal amount of the out-standing bonds shall, waive any default and its consequences and rescind any acceleration of the maturity of the bonds, but only if all defaults have been remedied and all payments due (other than by acceleration) have been made. Before exercising any of its rights or powers thereunder at the request or direction of the bondholders, the Trustee is entitled to require indemnity and security satisfactory to it against the costs, expenses and liabilities to be incurred thereby, subject, however, to

. ~; e n Its obligation, in case of defaults, to exercise such of its rights and powers, and use the same degree of care and skill in their exercise, as a prudent man would exercise or use under the circumstances in the conduct of his own affairs. The holders of a majority in princi-pal amount of the bonds of all series at the time outstanding may (a) direct the time, method and place of conducting any proceeding for any remedy available to the Trustee, or of exercising any trust or power conferred upon the Trustee, under the Indenture, or (b) on behalf of the holders of all said bonds, consent to the waiving of any past default (other than a

. default in the payment of principal or interest) and its consequences.

In the event that the Company fails to make payments of interest and/or principal on the Series Q Bonds, the Company will pay interest on such overdue amounts at the rate of 10. 75%

per annum.

Trustee: State Street Bank and Trust Company, a Massachusetts corporation with its principal corporate trust office at Boston, Massachusetts, is Trustee under the Indenture. It has had a regular course of dealings with the Company as Trustee under the Indenture and is one of the Company's commercial banks, having extended to the Company a $5,000,000 line of credit.

The Company anticipates that a portion of the proceeds of the Series Q Bonds will be applied to repay loans under this line of credit. Edward B. Hanify, Esq. , and Philip B. Hamilton,

- directors of the Company, are also directors of State Street Bank and Trust Company.

Expense s: Fees for legal, printing and other services will be paid by the Company.

9

p - e BOSTON EDISON COMPANY Re: Series Q Bonds Optional Redemption Prices

. 12 Months Optional 12 Months Optional Period Starting Redemption Period Starting Redemption December 15 Price December 15 Price 1978 109.75% 1990 104.87%

1979 109.34 1991 104.47 1980 108.93 1992 104.06 1981 108.53 1993 103.65 1982 108.12 1994 103.25 1983 107.72 1995 102.84 1984 107.31 1996 102.43 1985 106.90 1997 102.03 1986 106.50 1998 101.62 1987 106.09 1999 101.22 1988 105.68 2000 100.81 1989 105.28% 2001 100.40 2002 100.00%

JPF 11/2/78

, .A BOSTON EDISON COMPANY Re: Series Q, 9-3/47. Bonds Due 2003 Sinking Fund Payments (000's)

Payment Mandatory Optional Date Payment Payment

  • Total Dec. 15, 1983 $ 2,375 $ 2,375 $ 4,750 1984 2,375 2,375 4,750 1985 2,375 2,375 4,750 1986 2,375 2,375 4,750 1987 2,375 2,375 4,750 1988 2,375 2,375 4,750 1989 2,375 2,375 4,750 Dec. 15, 1990 3,800 3,800 7,600 1991 3,800 3,325 7,125 1992 3,800 -

3,800 1993 3,800 -

3,800 1994 3,800 -

3,800 1995 3,800 -

3,800 Dec. 15, 1996 6,935 -

6,935 1997 6,935 -

6,935 1998 6,935 -

6,935 1999 6,935 -

6,935 2000 6,935 -

4,085**

2001 6,935 - -

2002 6,935 - -

Dec. 15, 2003 7,030 - -

Total $ 95,0_00 $23,750 $95,000

  • The Company shall have the t ight in any year to redeem at par an additional amount of the Series Q Bonds not to exceed the amount of the annual mandatory sinking fund redemption payment. If not exercised in any year, the right is not cumulative to any future year. The maximum principal amount of Series Q Bonds redeemable hereunder shall be limited to $23,750,000.
    • Operation of the mandat cy sinking fund will result in an average life of approximately 17.2 years. If full use is made in each year of die optional sinking fund payment, the average life of the issue would be reduced to approximately 13.9 years and the final maturity would be 2000.

JPF 11/15/78

s EXHIBIT VI BOSTON EDISON COMPANY Computat ion of Rat io of Farnines to rixed Charces 12 Months Ended Pro Forma September 30, Year Ended December 31, 1978 1978 1977 1976* 1975* 1974* 1973*

(In Thousands)

Earnings Net Income $48,230 $37,599 $40,025 $33,376 S29,640 $29,711 Income Taxes 41,984 33,938 32,311 25,541 12,089 4,943 Interest on Long Term Debt 47,957 47,595 47,413 45,376 41,955 29,296 Interest on Nuclear Fuel Lease Obligation 577 Interest on Short-Term Notes Payable 8,724 6,632 6,741 8,593 12,556 10,182 Other Interest 906 749 720 1,067 1,477 485 Interest Portion of Rental Charges 2,000 2,000 2,100 1.600 2,000 1,900 Total Earnings $150,378 $150,378 $128.513 S129.310 $115,553 $ 99,717 $ 76,517 rixed Charges Interest on Long-Term Debt 52,707 (a) 47,957 47,595 47,413 45,376 41,955 29,296 Interest on Nuclear Fuel Lease Obligation 577 577 Interest on Short-Term Notes Payable 3,762 (b) 8,724 6,632 6,741 8,593 12,556 10,182 Other Interest 906 906 749 720 1,067 1,477 485 Interest Portion of Rental Charges 2,000 2,000 2 000 2,100 1,600 2.000 1,900 Total Fixed Charges S 59,952 S 60,164 S 56,976 $ 56,974 S 56,636 S 57,988 $ 41,863 Ratio of Earnings to Fixed Charges 2.51 2.50 2.26 2.27 2.04 1.72 1.83 (a) Reflect the following adjustments on a pro forma basis:

(in Thousands)

Annual interest on $100,000,000 aggregate principal amount of Series Q Bonds $ 9,750 at 9 3/4%

Elimination of interest on $40,000,000 Series 0, 1257., First Mortgage Bonds due August 15, 1979 (5,000T

$ 4,750 (b' Reflects the elimination of interest on $60,000,000 of short-term debt at the average short-term borrowing rate for the twelve months ended September 30, 1978 (8.27%).

  • Restated for final settlement of rate S-2 booked in September, 1978.

_ _ _

Retrieved from "https://kanterella.com/w/index.php?title=ML19263C066&oldid=2500309"