ML19289D187
| ML19289D187 | |
| Person / Time | |
|---|---|
| Site: | 05000484 |
| Issue date: | 02/19/1979 |
| From: | Dienhart A NORTHERN STATES POWER CO. |
| To: | Harold Denton Office of Nuclear Reactor Regulation |
| References | |
| NLNRC-87, NUDOCS 7902230183 | |
| Download: ML19289D187 (22) | |
Text
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- ee MSP NORTHERN STATES POWER COMPANY EAU CLAIR E. WISCONSIN 54708
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February 19, 1979 NLNRC-87 Mr H R Denton, Director Office of Nuclear Reactor Regulation U S Nuclear Regulatory Commis.. ion Washington, D C 20555
Subject:
TYRONE ENERGY PARK E-7470 Docket No. STN 50-484 Dear Mr Denton In a letter dated October 2,1978 from counsel for the Permittees to the Atomic Safety and Licensing Appeal Board for the Tyrone Project, the revision uf the scheduled commercial operation date for the pro-ject from April 1985 to April 1986 was announced. Subsequently, the NRC staff has asked that the financial qualifications data which had been transmitted in support of Permittee's Request for Amendment to the Construction Permit be updated to be consistent with the new scheaule. This letter transmits information in response to that request.
Attachment 1 comprises revised pages A-6 through A-17 to Exhibit A to the Request for Amendment which was previously provided as an attachment to a letter, NLNRC-86, dated August 25, 1978.
Attachment 2 comprises supplemental information to that provided in a letter, NLNRC-80, dated April 20, 1978. This supplemental infor-mation is more recent than that provided in NLNRC-80, Attachments A-3, A-6, and A-8. The information in Attachments A-1, A-2, A-4, A-5, A-7, and B to that letter is still current.
Pursuant to condition 3.D of the construction permit, copies of the executed loan commitments for Dairyland Power Cooperative and Cooper-ative Power Association were provided on February 23, 1978 by letter Y#
4 7902230/63- 6
NORTHERN STATES POWER COMPANY Page Two February 19, 1979 Mr H R Denton from J Silberg, counsel for the Applicants, to E G Cr.se. That loan commitment is unaffected by this request for amendment and is considered to be adequate for the alent and associated transmission given the plant cost estimate shown on pages A-8 and A-9 of Attachment 1 to this letter.
Yours very truly Q. . 4
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Arthur V Dienhart Vice President Tyrone Energy Park Project AVD/AGS/hk cc J Arthur G Charnoff J P Madgett K S Austin G L Koester N T McPhee J K Bryan T V Lennick N A Petrick On this 19th day of February,1979, before me a notary public in and for said County, personally appeared Arthur V Dienhart, Vice President, and being first duly sworn acknowledged that he is authorized to execute this document on behalf of Northern States Power Company, a Wisconsin corporation, that he knows the contents thereof, and that to the best of his knowledge, information, and belief, the statements made in it are true and that it is not interposed for delay.
// T R6bert E Hessian Notary Public, Hennepin County, Minnesota My Commission Expires May 15, 1983 M E. M
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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION Before the Comission In the Matter of Northern States Power Company Docket No. STN 50-484 Tyrone Energy Park Certificate of Service I hereby certify that copies of the docu-ents listed below in the above-captioned matter were served upon the following by deposit postpaid in the United States mail this 19th day of February,1979.
Michael J Cain, Esquire Mrs Harold C Bauer Bureau of Legal Services Route 1, Box 191 Department of Natural Resources Rock Falls, Wisconsin 54764 Box 450 Madison, Wisconsin 53701 Jocelyn Furtwangler Olson, Esquire Minnesota Pollution Control Agency Steven M Schur, Esquire 1935 W County Road B2 Chief Counsel Desig.' ate Roseville, Minnesota c5113 Public Service Comission of Wisconsin Hill Farms State Office Building Mr Thomas A Galazen 4802 Sheboygan Avenue Route 2, Box 64 Madison, Wisconsin 53702 Turtle Lake, Wisconsin 54889 James P Altman, Esquire Mr Stanley Cider Assistant Attorney General c/o Durand Postmaster Department of Justice Tyrone, Wisconsin 54736 State Capitol Madison, Wisconsin 53702 Mr Richard Ihrig 400 Exchange Building Fourth and Center Winona, Minnesota 55987 Documents
- 1) A letter, NLNRC - 87 and attachments thereto, dated February 19, 1979 from Arthur V Dienhart to H R Denton of the Nuclear Regulatory Comission.
Copies of this letter are maintained in the local public documnt room at the Pierce Library, University of Wisconsin - Stout, Menomonie, Wisconsin, pursuant to 10 CFR 50.30 (3) (2).
Subscribed and sworn to before ne 1
Arthur V Dienhart 7
this 19th day of February,1979. Vice President Tyrone Energy Park Project Robert E Hecsian .
Notary Public, Hennepin County, Minnesota {
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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION Before the Comission In the Matter of Northern States Power Conpany Docket Na. STN 50-484 Tyrone Energy Park Certificate of Service I hereby certify that copies of the documents listed below in the above-captioned matter were served upon the following by deposit postpaid in the United States mail this 19th day of February,1979.
Ivan W Smith, Esquire Mr Lester Kornblith, Jr Atomic Safety and Licensing Atomic Safety and Licensing Board Panel Board Panel U S Nuclear Regulatory Commission U S Nuclear Regulatory Comission Washington, D C 20555 Washington, D C 20555 Dr George C Anderson Michael C Farrar, Esqvire Department of Oceanography Atomic Safety and Licensing University of Washington Appeal Board Seattle, Washington 98195 U S Nuclear Regulatory Comission Washington, D C 20555 Richard S Salzman, Esquire Chairman Dr W Reed Johnson Atomic Safety and Licensing Atomic Safety and Licensing Appeal Board Appeal Board U S Nuclear Regulatcry Commission U S Nuclear Regulatory Commission Washington, P C 20555 Washington, D C 20555 Documents
- 1) A letter, NLNRC - 87 and attachments thereto, dated February 19,1979 from Arthur V Dienhart to H R Denton of the Nuclear Regulatory Commission.
I Arthur V Dienh' art Vice President Subscribed and sworn to before me Tyrone Energy Park Project this 19th day of February,1979.
pg E Robert E Hessian Notary Public, Hennepin County, Minnesota ; __
y 1 ; HOBERT E. HE551AN :
My Comission Expires May 15, 1983 i<,,
mne rueuc--munen HENNEPIN COUNTY p yCormss on Er; ires May 15,1983 l
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ATTACHMEriT 1 NLNRC-87 February 19, 1979
, . Exhibit A FINANCIAL QUALIFICATIONS
Introduction:
The amendment requested herein ref1cets the transfer of the ownership of 31.1 percent of Tyrone Energy Park of Northern States Power Company (Wisconsin). The total Northern States Power Company (Wisconsin) share of the facility is now 67.6 percent. The current total facility cost estimate is provided as Table 1, Sheets 1 and 2. Financial information is provided for Northern States Power Company (Wisconsin) and Lake Superior District Power Company, based upon this estimated facility cost.
Northern States Power Company (Wisconsin)
Northern States Power Company (Wisconsin), is a public utility as defined in 196.01, Wisconsin Statutes operating as an electric and gas utility in Wisconsin; it serves generally in the northwestern portion of the state. The Company serves approximately 132,000 retail electric customers. Eleven municipally owned electric utilities and 30,000 gas customers. Common stock of Northern States Power Company (Wisconsin) is wholly owned by Northern States Power Company (Minnesota), whose general offices are located in Minneapolis, Minnesota.
Northern States Power Company (Wisconsin) had investment of approximately $200 million of net utility plant and 675 employees as of December 31, 1978. In 1978, approximately 86 percent of the company's revenue of $135 million was derived from electric operations and 14 percent trom its gas operation.
It is estimated that over the next 10 years, $1.2 billion will be spent for con-struction of new facilities. An estimated $.4 billion will be spent from 1978 through 1982 and S.8 billion from 1983 through 1987. About 35 to 40 percent of the first $.4 billion and 70 to 75 percent of the next S.8 billion is expected to be generated internally. Of the external financing required, Northern States Power Company (Minnesota) will provide approximately 10 percent through purcF se of common stock. Sixty-four percent of the expenditures through 1987 are on the Tyrone Energy Park plant and 17 percent on nuclear fuel.
Northern States Power Company (Wisconsin) is a wholly owned subsidiary of Northern States Power Company (Minnesota). The coordinated agreement between the companies provides for, among other things, the sharing of the costs of owning and operating generating facilities of the two companies. Fixed costs such as those related to the construction of Tyrone Unit I are shared between the companies based upon the ration of coincident company peak demands. Also shared are operating expenses and post operating expenses. Northern States Power Company (Minnesota) will purchase additional shares of common stock of Northern States Power Company (Uisconsin) as part of the overall financial plan for Tyrone Unit I.
Northern States Power Company (Minnesota)
Northern States Power Company (Minnesota), is predominantly an operating public utility engaged in the generating, transmission, and distribution of electricity throughout a 40,000 square mile area and the distribution of gas in 78 communities within this area. The Coupany also supplies some heating and telephone services.
February 19, 1979 A-6
The consolidated Northern States Power Company (Minnesota) and Northern States Power Company (Wicconsin) investment in net utility plant is $2.2 billion and 6,508 benefit employees serve customers in Minnesota, North Dakota, South Dakota, and by Northern States Power Company in Wisconsin. Of approximately three million people in the Northern States Power Company (Minnesota) and Northern States Power Company (Wisconsin) service area, 59 percent are concentrated in the Twin Cities Metropolitan Area. In 1978, about 66 percent of Northern States Power Company (Minnesota) and Northern States Power Company (Wisconsin) $680 million of retail electric revenue was derived from sales 11. the Twin Cities Metro Area and about 62 percent of 157.8 million of gas retail revenue from sales in the St. Paul area.
It is estimated that over the next 10 years, $5.1 billion will be spent for con-struction of new facilities to serve the customers of Northern States Power Company (Minnesota) and Northern States Power Company (Wisconsin). An estimated 2.0 billion will be spent from 19'i9 through 1983 and $3.1 billion from 1984 through 1988. About 55 percent of the $2.0 billion and 70 percent of the the $3.1 billion is expected to be generated internally.
The ratio of internal funds to construction expenditures is significantly better than the industry average. This results from being normalizing companies and from calculating depreciation rates on a realistic basis. In addition, because Northern States Power Company (Minnesota) has contracted for 500 megawatts of firm capacity f rou Manitoba Hydro Electric in Canada in 1980, no major generating units will be added to the systen between 1979 and 1983.
Northern States Power Company is favorably regarded by the fir.ancial community because of its diversified, stable service arca; heavy reliance on coal and nuclear Ceneration; good fuel supplies; and favorable internal cash generation.
Sutmary:
Table 2, Shect 1, 2, and 3 provide source of funds for construction expenditures information for Northern States Power Company (Wisconsin) . Table 3, Sheets 1, 2, and 3 provides that aame information for Northern States Power Company (Minnesota).
Table 4, Sheets 1 and 2 provides that same information for Lake Superior District Power Company. Dairyland Power Cooperative and Cooperative Power Association have recently received loan cor.mitments f rom the Rural Electrification Administration (REA) for their shares of T jrene Energy Park Unit I.
The information provided herein indicates the capability of the owners to support the construction c,f Tyrone Energy Park Unit I. In light of the financial respon-sibility by Northern States Power Company (Minnesota) for construction expenditures by Northern States Power Ccapany (Wisconsin) as described previously, the basis on which the NRC found that owners of Tyrone Unit I are financially qualified to constroet that unit is unchanged.
February 19, 1979 A-7
Exhibit A Table I Sheet 1 of 2 PLANT CAPITAL INVESTMENT
SUMMARY
BASIC DATA flame o f Plan t. . . . . . . Tyrone Energy Park Net Capacity . . . . . . . 1100 Megawatts Reactor Type . . . . . . . Pressurized Water Reactor Location . . . . . . . . . Durand, Wisconsin Type of Cooling. . . . . . Mechanical Dra f t Cooling Towers DESIGN AND CO.*;STRUCTIOT: PERIOD Month-Year NSSS Order Placed. . . . . . . . . July, 1973 Mon th-Yea r of Commercial Operation. . . . . . April, 1986 Length of Workueek. . . . . . . . . . . . . . 40 Hours Interest Rate, Interest During Construction .
- Interest during rans truc tion (IDC) or allowance for funds dur.ing con truction (AFC) calculated for each owner separately based upon practices or regulations of that owner.
NSP-WISC 7' Semi-Annual Cor. pounded; DP C 7'2r S icpl e ;
CPA 97 Compounded; LSDP 7t Semi-Annual Compounded.
February 19, 1979 A-8
Exhibi t A Table I Sheet 2 of 2 PLAfiT CAPITAL I fiV ES TMErlT
SUMMARY
(continued)
COST
SUMMARY
Account flunber Account Title Total Cost (000's)
Direct Costs 2,000 20 Land and Land Rights $
Physical Plant 21 Structure & Site Facilities 155,000 22 Reactor Plant Equipment 200,000 23 Turbine Plant Equipment 109,000 24 Electric Plant Equipment 42,000 25 Miscellaneous Plant Equipment 10,000 5,000 Subtotal $ 523,000 Indirect Costs 91 Cons truc tion Facilities, ) $
Equipnent and Services )
92 Engineering and Constr;tction)
Management Services ) 163,000 93 Other Costs 94 Interest During Construction 243,000 Subtotal 5 362,000 Escalation During Construction (7t/ Year) 241,000 Total Plant Capital Investinent
($964/kw) 1,170,000 Start of Cons truction Cost (Dollars as of 4/1/80) 86,547 g Escalat'.on Base Date 11/1/78 February 19, 1979 A-9
p Applicant: Northern Staten Power Company (Wi s cor n in)_ Nuclear Plant: IyI.:me_lnercy Park c -
y f Sources of Punds for Conctruction Expenditures During Period of Construc tion of Subject Nuclear Power Plant
- (nillions of dollars)
- Security issues and _Conntruction Yearn of Subject Nuclear Power Plant other funds 1979 1980 1481 1987 1983 1984 1985 1986 Cc::=on Stock (Purchased by parent company) 0.0 30.0 0.0 100.0 60.0 65.0 100.0 -220.0 Preferred Stock O.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Long-Terr Debt 40.0 0.0 50.0 0.0 50.0 100.0 0.0 100.0 Notes Pay.?ble -21.6 5.6 29.9 9.3 -10.4 -23.3 29.5 30.9
' Other rund:. 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Total 13.4 35.6 79.9 109.3 99.6 141.7 129.5 -89.1 Internal Funds Net income 13.5 16.8 20.5 28.8 41.4 53.5 69.4 70.4 Less:
Preferred Dividends 0 0 0 0 0 0 0 0 Common Dividends 0 0 0 0 0 0 0 0
.,. Retained Earnings j -13.5 16.8 20.5 28.8 41.4 53.5 69.4 70.4 1 Invest. Tax Cred. - Deferred 2.8 5.5 10.1 14.7 11.5 13.6 11.2 8.3 Depreciation and Amortization 12.5 13.2 13.6 14.6 15.5 16.2 17.0 102.8 Working Capital and Other -7.2 .7 -2.6 -12.0 .1 -8.4 -12.4 -4.9 Less: AFDC 2.6 4.4 9.0 16.6 27.2 38.8 51.7 11.0 Total 19.0 31.8 32.6 29.5 41.1 36.1 33.5 165.6 Total Fundr, 37.4 67.4 112.5 138.8 140.7 177.8 163.0 76.5 Construction Expenditures
- Nuclear Power Plants 14.0 '0.5
, 90.5 115.7 104.9 113.9 95.5 21.4 Other 23.4 30.9 22.0 23.1 33.8 63.9 67.5 55.1 Total Construction Expenditures 37.4 67.4 112.5 138.8 140.7 177.8 163.0 76.5 Subject Nuclear Plants ** 14.0 36.5 90. 115.7 104.9 113.9 95.5 21.4
- Ex1cunive of AFDC (allowance for funda used during construction).
- Expenditures prior to 1978 were $24.5 million (with AFDC) including 31.37. of project carried by NSPM. Other g! p p construction expenditures for 1978 include repurchase of NSPM's 31.3% of project. Ej $ E Note: Deferred taxes included in Depreciation and Amortization a.1 per accounting prescribed by PSCW. "m[
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Exhibit A Table II Sheet 2 of 3 SOURCES OF FUNDS ASSUMPTIONS 1979-1986 NORTHERN STATES POWER COMPANY (Wisconsin)
(a) Rate of Return on Average Com. mon Equity 1979 11.0 1980 11.0 1981 11.0 1982-1985 11.0 (b, e, h) Interest Rates on New Issues Instrument 1979 1980-1986 Rance Mortgage Bonds NA 8.75% to 10.0%
Loans From Associated Companies 10.6% 7.22% to 9.71%
Bank Loans 10.5% 7.25% to 9.75%
Dividends Preferred Stock Dividend on New Issues NA NA Common Stock Dividend Payout Ratio 0 0 NA - Not applicable because no instruments are issued in these years.
(c) Average Annual Comnound Growth Rates for Selected Items 1979 1980-1986 Retail FJai sales 5.6 4.0%
Revenues 8.6 17.0%
Expenses 7.0 15.2%
Interest Charges 35.4 25.2%
Net Income 21.0 26.6%
(d) Market / Book Ratio for Common Stock Of ferings Commoa Equity financings will be purchased by parent company (Northern States Power - Minnesota).
(f) Capital Structure 1979 1980-1986 Rance Common Equity 57% 52 - 6S%
Preferred Equity 0 0-0 Debt Including Short Term 43% 31 - 48 (g) Coverages See - Pretax Including AFDC 4.8 3.4 to 4.9 Bond Indenture 4.4 2.1 to 4.6 February 19, 1979 A-ll ,
Exhibit A Table II Sheet 2 of 3 (1) AFDC Assures 7% for Wisconsin Ccepany on qualifying property. In a rate proceeding, the Public Service Corrission of Wisccasin established that the 7% AFDC rate be applied only to construction work in progress in excess of 10 percent of the net investment rate base.
(j) Construction E:menditure Escalation Rate Assure a 8% annual escalation rate for constructicn expenditures in 1979 and 1980 and then 7 thereafter.
(k) Investrent Tax Credit Assures a 10% ITC rate on qualified property placed in service after January 21, 1975 on progress payrents cade en plant to be placed in service thereafter.
February 19, 1979 A-12 -
Northern States Power Company - Consolidated *
? Applicant: Northern States Power Connany (Wisconsin) Nuclear Plant: Tvrone Enercy Park .
l Sources of Funds for System-Wide Construction Expenditures During Period 5 of Construct;_a of Subject Nuclear Power Plant Q (millions of dollars)
~
. Security issues and Construction Years of Subiect Nuclear Power Plant other fundr 1979 1980 1931 1987 '983 1984 1985 1986 o
Common Stock 13.0 14.7 18.7 92.4 106.9 32.2 35.6 39.8 Preferred Stock 0.0 0.0 0.0 40.0 40.0 0.0 0.0 0.0 Long-Term Debt 40.0 0.0 125.0 135.0 100.0 191.0 125.0 190.0 Notes Payable (changes) 27.9 4.7 25.9 96.2 -48.9 -35.7 15.3 -43.9 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Other Funds 0.0 Tctal 80.9 19.4 169.6 363.6 198.0 187.5 175.9 185.9 Internal Funds a
Net Income 119.2 125.6 132.1 146.5 167.9 185.0 196.0 208.1 Less:
Preferred Dividends 14.5 14.5 14.5 17.0 20.2 22.2 22.2 22.2 Con. mon Dividends 67.5 78.0 . 82.8 92.6 103.7 113.9 121.6 127.4 y 1;etained Earnings 37.2 33.1 34.8 35.9 44.0 48.9 52.2 58.5
[; Deferred Taxes 37.4 35.5 36.2 37.8 32.8 52.7 47.6 53.3 Invest. Tax Cred. - Deferred 25.4 17.9 32.7 4'. 3 36.4 31.1 25.7 28.6 DDepreciation and Amortization 132.5 136.7 145.5_ 154.0 182.6 212.7 242.1 341.0 Working Capital and Other -42.6 10.1 -19.0 -77.0 49.4 -28.2 -8.? -198.5 Less: AFDC 15.7 16.7 22.4 43.7 63.6 58.3 60.0 25.5 Total 174.2 216.6 207.8 155.3 281.6 258.9 299.4 2' / .4 Total Funds 255.1 236.0 377.4 518.9 479.6 446.4 475.3 443.3 Total Cost Expenditures
- 255.1 236.0 377.4 518.9 479.6 446.4 475.3 443.3
- Exclusive of AFDC (allowance for funds used during construction) .
Redemption of LTD -22.1 .3 .1 -22.2 0 -20.1 0 -15.0 Working Cap -68.5 11.0 -16.3 -13.1 11.1 -5.8 -4.8 37.6 Cash and Temp Inv Dec. 46.6 .9 -1.2 - - - -
-162.7 Sink Fund .9 -1.3 -1,3 -1.8 -1.8 -2.3 -3.3 -3.3 Pollution Control (Net) 2.2 .0 0 -40.0 40.0 0 0 -55.0_
-42.7 10.3 -18.9 -77.1 49.3 -28.2 -8.1 -198.4 YYY
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. . Exhibit A Table III Sheet 2 of 3 SOURCES OF FUNDS ASSUMPTIONS 1979 - 1986 NORTilERN STATES PO',lER COMPANY (Minnesota an. Subs)
(a) Rate of Return on Average Common Equity 1979 13.0 1980 13.0 1981 13.0 1982-1986 13.0 (b , e, h) Interest Rates on Ncv Issues Instrument 1979 1980-1986 Range Ecrtgage Bonds NA 8.75% to 10.0 Pollutioc. Lontrol Bonds NA 7.25% to 8.25 Cotcurrical Paper 9.5 6.50% to 8.75 Eank Leans 10.5 7.25% to 9.75 Temporary Investments 7.25 6.50% to 8.75 Dividends Preferred Stock Dividend on New Issues NA 8.75 to 10.0 Connon Stock Dividend Payout Ratio 64 68 to 71 NA - Not applicable because no instruments are issued in these years.
(c) Averac,e Annual Compound Growth Rates for Selection Items 1979 1980 - 1986 Retail Kh'H sales 1.5 4.0 Revenues 4.7 10.3 Expenses 6.2 10.5 Interest Charges 2.6 10.3 Net Income 3.4 8.3 (d) Market / Book Ratio for Common Stock Offerines Net market price is assumed to be 95% of book value.
(f) Capital Structure Conmon Equity 41 40 - 42%
Preferred Equity 11 9 - 11 Debt Including Short Term 48 46 - 30 (g) Coverages SEC - Pretax Including AFDC 4.4 3.9 to 4.6 Bond Indenture 4.2 3.2 to 4.3 February 19, 1979 A-lh
Exhibit A Table III Sheet 3 of 3 (1) AFDC Assures a rare based upon FPC order 561 pertaining to calculation of AFC (about 7 1/2*) for Minnesota Conpany and 7% for Wisconsin Company on qua'ifjing property.
In a rate proceeding, the Public Service Cornission of Wisconsin established that the 7% AFDC rate be applied only to construction work in progress in excess of 10 percent of the net investnent rate base.
(j) Cens*tuction Expenditure Escalaticn Rate Assumes a 8" annual escalaltion rate for construction expenditures in 1979 and 1950 and then 7% tamreafter.
(k) Investnent Tax Credit Assures a 10% ITC rate on qualified property placed in service after January 21, 1975 on progress paynents cade on plant to be placed in service thereaf ter.
February 19, 1979 A-15
2 u-Applicant: Lake Superior Dist rict Piraer Company Nuclear Plant: Tv ro r.e E Sources of Funds for System-Wide Construction Expenditures Durine, Period of Construction of Subject Suclear Power Plant a
(Millions of Dollars) to U Construction Years of Subject Nuclear Power Plant Security Issues and Other Funds 1979 1980 1981 1982 1933 1984 1985 1986 S S S S S 6 S S Cocuaon Stock .4 -
1.9 -
3.2 -
3.0 -
Preferred Stock - - -
2.0 -
2.5 - -
Long-Term Debt -
5.0 5.0 8.0 5.0 5.0 5.0 5.0 Notes Payable .7 .1 1.0 1.2 .2 (.6) 1.6 1.1 Other Funds (Bond Sinking Fund Req.) (1.0) (2d) (1.9) _(.6) (2.0) (.5) _J)
( (.5)
Total .1 3.0 6.0 10.6 6.4 6.4 9.1 5.6 Internal Punds
? Net Income 2.6 2.9 3.2 2.8 3.4 3.5 4.9 5.6
$ Less:
Preferred Dividends .2 .2 .2' .2 .4 .5 .6 .6 Common Dividends 1.4 1.5 1.7 2.0 2.3 2.7 3.1 3.5 Retained Larnings 1.0 1.2 1.3 .6 .7 .3 1.2 1.5 Investment Tax Credit - Deferred .5 .8 1.0 1.4 .9 .8 1.2 1.1 Depreciation and Anortization 3.6 3.7 3.8 4.0 4.2 4.8 5.3 7.3 Less: AFDC (sees note below) -
.3 .7 1.2 1.6 .9 1.6 .9 Total 5.1 5.4 5.4 4.8 4.2 5.0 6.1 9.0 TOTAL FUNDS 5.2 8.4 11.4 15.4 10.6 11.4 15.2 14.6 Construction Expenditures
- Nuclear Power Plant (Tyrone) .4 1.0 2.7 3.4 3.1 3.4 2.8 .7 other Power Plant -
3.1 2.5 4.2 2.6 2.8 6.8 8.1 Other 4.8 4.3 6.2 7.8 4.9 5.2 5.6 5.8 Total Construction Expenditures 5.2 8.4 _11.4 15.4 10.6 11.4 15.2 14.6
$YT
- Exclusive of AFDC (allowance for funds used during construction). {S $ 5-5.
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Exhibit A Table IV Sheet 2 of 2 SOURCES OF FUNDS ASSUMPTIONS 1979 - 1936 IAKE SUPERIOR DISTRICT P0llER COMPA.Ti (a) Rate of return on average connon stock equity (percent) 1979 1980 to 1986 13-1/2 14 per year (b) Freferred stock dividend rate of 10 percent on new stock issued.
(C) Growth rate (average) per year over the period (percent).
Kilowatt hour sales - 3.6L Revenues (electrie) - 9.4k Expenses (total cenpany) - 9.1%
Interest charges - 15.50 New incone - 11.6%
(d) lbrket/ book ratio with respect to the projected connon stock offerings assuned to be 100 percent.
(c) Connon stock dividend payout ratio averaged approxinately 75 percent over the peried.,
(f) An appro.cinate capital structure of 50 pcretnt cebt, 50 percent equity was naintained in forecasting financing requircnents.
(g) Indenture interest coverages ever the period ranged fren 2.2 to 3.4.
(h) Long and siwrt-tern debt interest rates were estinated to range fron 8.5 to 11.0 percent.
(i) Investnent tax credit was cecputed at 10 percent.
(j) Allowance for funds used during censtruction was conputed at 7 percent (not cerpounded) when the ratio of cennructica work in progress to net investnent rate base exceeded 10 percent on a weighted annual average.
February 19, 1979 A-17
ATTACIDENT 2 NLNRC-87 February 19, 1979