ML19305C065
| ML19305C065 | |
| Person / Time | |
|---|---|
| Site: | Dresden, Quad Cities, Zion  |
| Issue date: | 03/18/1980 |
| From: | Nexon H COMMONWEALTH EDISON CO. |
| To: | Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8003250541 | |
| Download: ML19305C065 (6) | |
Text
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_ 'N Commonwealth Edison z / Ons First Natienti Plaza. CNetgo Ilhnois V
Accrass Reply to Post Offica Box 767 Chicago, Illinois 60690 March 18, 1980 Docket Nt,. 50-295, 304, 254, 265, 10, 249 & 237 Nuclear Regulatory Commission Washington, D.C.
20555 Attention:
Antitrust and Indemnity Group Nuclear Reactor Regulation Gentlemen We are submitting the following information to comply with the provisions of 10 CFR Chapter I, Part 140, Section 140.21, and the letter from Jerome Saltzman, Chief, Antitrust and Indemnity Group, dated June 15, 1977:
(1) annual report of this Company for the calendar year 1979 which shows its income statement and balance sheet, duly certified by the company's public accountants, and which includes a summary statement for the last quarter of the year at page 18; (2) a statement of internal cash flow projected for 1980 and actual for 1979; and (3) a narrative statement to which the cash flow projection is annexed, explaining the projection, dealing with capital expenditures which might be curtailed should that become necessary, and establishing the availability of adequate funds to meet the Company's obligation for the payment within three months of May 1,1980 of the company's maximum liability for retrospective premiums.
As noted in the narrative statement, the company has a three-quarter share in the ownership of Quad cities Units 1 and 2; the remaining quarter share is owned by Iowa-Illinois Gas and Electric Company which is submitting a separate statement.
Very truly yours, COMMONWEALTH EDISON COMPANY By
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Senior Vice-President Enclosures 9003058 ogg
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COMMONWEALTH EDISON COMPANY AND SUBSIDIARY COMPANIES Internal Cash Flow 1979 Actual and 1980 Proj ected (For Dresden, Quad Cities and Zion Nuclear Power Stations) 1979 1980 Actual Projected (5000)
(5000)
Net Income After Taxes and Dividends Paid S
(1,181) 50,000*
Adjus tments Depreciation and Amortization
$ 329,421
$ 361,000 Deferred Income Taxes and Investment Tax credits 54,445 128,000 Allowance for Funds Used During Construction (222,128)
(260,000)
Total Adjustments S 161,738
$ 229,000 Internal Cash Flow
$ 160,557
$ 279,000 Average Quarterly Cash Flow 40,139 70,000 Percentage Ownership in'all Operating Nuclear Units Dresden 100.00%
Quad Cities 75.00%
Zion 100.00%
MAXIMUM TOTAL CONTINGENT LIABILITY
$65,000,000
- Order of magnitude estimate.
March 18, 1980 COMMOMWEALTH EDISON COMPANY MEMORANDUM WITH RESPECT TO PROJECTED COMPANY CASH FLOW STATEMENT FOR YEAR ENDING DECEMBER 31, 1980 The attached statement shows that internal cash flow projected for the year 1980 for Commonwealth Edison Company is expected to total about $280 million, and on an average quarterly basis to total about $70 million.
The statement also shows that the maximum total contingent liability for premium assessments against the Company as a licensee of nuclear power reactors is $65 million since, although it operates seven reactors, it is a tenant-in-common with only a 75% ownership interest in the two units at Quad Cities Station.
Iowa-Illinois Gas and Electric Company, the other tenant-in-common, is filing a separate statement.
Funds for the payment of the $65 million possible maximum premium assessments could be diverted from the construction program and made available from internal cash generation or from other sources.
The Company increased its rates effective Feburary 7, 1980, pursuant to an order of the Illinois Commerce Commission which authorized $389.6 million in additional revenues on an annual basis, inclusive of an approximately $45 million rate increase collected subj ect to refund since October' 15, 1979.
The February order reflects the Company's legal right to rates sufficient to recover its legitimately incurred costs of providing service, t
~ The Company's credit ratings are sufficient to allow access to the capital markets -- both long-term and short-term adequate to fund the maximum $65 million assessment.
The Company has an A credit rating from-Moody's Investors Service, Inc.
and an AA-credit rating from Standard &
Poor's Corporation applicable to its mortgage debt.
Its junior debt securities are -rated Baa and A by Moody's and Standard & Poor's, respectively.
It also has the highest credit ratings possible -- PRIME-1 from Moody's and A-1 from Standard & Poor's -- applicable to its commercial paper.
In addition, the Company has back-up lines of credit totaling over $290 million at prime rates with major commercial banks and presently has outstanding borrowings totaling only $3.8 million under these lines.
The Company also has a $300 million line of credit with nine banks in connection with, but not Ibnited to use for, a nuclear fuel lease arrangement, subj ect to reductions equivalent to amounts provided for nuclear fuel under lease from time to time.
These credit ratings and credit arrangements provide for the means to l
raise additional capital in the amounts which may be required.
The attached internal cash flow statement proj ected i
for 1979 reflects the net effect of a requirement of over
$300 million for cash dividends on capital stock.
Cash dividends on the Company's stock cannot be considered obligatory and because they are subject to declaration from et
a
~ time to time by the Company's Board of Directors, they could, if necessary, provide the means for making additional cash available for other uses.
Without curtailing dividends or resorting to additional long-term or short-term financing, the Company could, if necessary, delay its construction program, thereby reducing its cash requirements for that program during the period of delay and making cash available to meet assessments, although such action would increase the costs of plant construction.
The Company has under construction two 1100 megawatt class nuclear units at each of three sites, LaSalle, Byron and Braidwood Stations.
Throughout the period 1980 through 1984, during which these units are scheduled to go into service, the Company's capacity reserves will be greater than its reserve target.
It could, therefore, postpone construction pursuant to a variety of delay options which would make $65 million available in a six-month period without j eopardizing service, although a postponement would be costly.
Ehrther, we have analyzed the effect for a three-month period beginning May 1, 1980, of halting construction of several combinations of four of the units listed above.
Depending on the option chosen,the amount of cash made available in the-shorter-period would range from $37.3 million to $49.7 million.
Additional cash in amounts more W
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than enough to provide $65 million in total would be available from the Company's cash and cash equivalents on hand during that three month period together with cash available on short term notice through the use of the Company's bank lines or commercial paper resources.
The undersigned certifies that the foregoing memorandum with respect to Commonwealth Edison's projected cash flow for the year ending December 31, 1980, and the appended cash flow statement are true and correct to the best of his knowledge and belief.
Ik ha /] NQm Hubert H. Nexon Senior Vice-President
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CONTENTS TRANSFER AGESTS Agents and Registrars
. ( right )
The First National Bank of Chicago
- One First National Plaza Letter to Stockholders,
1 Chicago, Illinois 60670 Highlights.
2 l
Review of 1979 2-6 NIanufacturers Hanoser Trust Company
- 4 New Y rk Plaza Stock Price and Dividend Information New Y rk, New York 10015
- 5. Year Summary of Operations and Nianagement's Discussion and Analysis.
89 The First National Bank of Boston Report of Independent Public Accountants.
10 100 Federal Street Boston, Niassachusetts 02110 Financial Statements 10-20 Directors and Nianagement.
. Inside Back Cover REGISTRARS
. COVER Continental Illinois National Bank in 1879, Thomas Alva Edison deseloped the first practical and Trust Company of Chicago" incandescent light bulb, a replica of which is shown on our 231 South LaSalle Street cover. To commemorate the 100th anniversary of that Chicago, Illinois 60690 historic event, an international " Centennial of Light" was The First National Bank of Chicago"*
observed in 1979. Edison's remarkable genius and inventive One First National Plaza mind contributed greatly to the progress of mankind. We Chicago, Illinois 60670 join with the world in honoring him on the centennial of this N[ organ Guarantv Trust Company of New York great achievement.
30 West Broadwa'v New York, New York 10015 CONINIONWEALTil EDISON CONIPANY State Street Bank and Trust Company 225 Franklin Street The Company is engaged principally in the production, Bosmn, Niassachusetts 02101 purchase, transmission, distribution and sale of electricity to some eight million people in an i1,525-square-mile service
" common noik eniy area (see map below). Corporate address: One First
- " Preferred and preference notks onb National Plaza, P. O. Box 767, Chicago, Illinois 60690.
DIVIDEND REINVESTNIENT PLAN AGEST Telephone: (312) 294-4321.
The First National Bank of Chicago Shareholder Services Department P. O. Box 1762 Chicago, Illinois 60690 ANNUAL NIEETING Lake
-,3w
- Ma The annual meeting of stockholders will be held at 10:30 commonweahh Edison service Area a.m. on Wednesday, April 16,1980, in the Auditorium of ffq the Prudential Building,130 East Randolph Street, Chicago.
Q Illinois. Proxy mate-ials will be mailed to stockholders on or W
about Niarch 12.
CNcato ANNUAL REPORT, FORN110-K G
g JT j
AND FINANCIAL REVIEW S2 D
4 This 1979 Annual Report has been approved by the Board M, 6[; g;M of Directors. The 1979 Form 10-K Annual Report (to be f$;$1 filed with the Secur: ties and Exchange Commission) and the 1979 Financial Review (wt:h comparative statistics for
'K$1ernds g,I @J:
,qg9%w v,;
the last 10 years) w:ll be availatie in early April.
j Si ckholders may ootain a cepv of either or Inth without b h;M &
b M,'pg'ra%slf;.9t/df N
charge upon request to R. P. Bachert, Secretary and M9,% qp #m;N Treasurer, Commonwealth Edison Company, P. O. Box
.Q r 4 5 --.,P:,' y. R. - Q.,,y-e h ASM 767: Chicago, Illinois 60o 0 0
v
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