ML19318A374

From kanterella
Jump to navigation Jump to search
Forwards General Public Utilities - Cash & Earnings Forecast,June 1980-Dec 1981
ML19318A374
Person / Time
Site: Crane  Constellation icon.png
Issue date: 06/16/1980
From: Herbein J
METROPOLITAN EDISON CO.
To: Saltzman J
Office of Nuclear Reactor Regulation
References
TLL-273, NUDOCS 8006200371
Download: ML19318A374 (19)
v • d • e


Text

.

Metropolitan Edison Company Post Office Box 480

=

Middletown, Pennsylvan,a 17057 717 944-4041 Writer's Direct Dial Number June IQ 1980 TLL 273 Office of Nuclear Reactor Regulation ATTN: Jerome Saltzman, Chief Utility Finance Branch U.S. Nuclear Regulatory Commission Washington, D.C.

20555

Dear Sir:

Thra, F.le Island Nuclear Station Units I and II (TMI-I & TMI-II)

License No. DDR-50 and DPR-73 Docket Nos. 50-289 and 50-230 Financial Projections As discussed in a recent telephone conversation between Mr. J. G. Graham (GPU) and Mr. M. Karlovicz, enclosed please find the "<;PU System - Cash and Earnings Forreast for June 1980 to December 1981".

Sincerely, J. G. Herbein Vice-President TMI-I JGH: dad t

Enclosure cc:

J. T. Collins B. Snyder H. Silver D. DiIanni M. Karlowicz 00 5 5

800620037/

/

Metreochtan Ed: son Company is a Member of the Genera! Pubhc Utd't:es System

8 e

4-a.

-i

+

t 0

4 i

i i

i i

i a

.i e

i GPU SYSTEM CASH AND EARNINGS FORECAST

{

June 1980 - December 1981 1

i i

t 4

t i

2 l

4

)

i i

Presented to the GPU Board of Directors June 5, 1980 I

i

~

- ~.

..,.m.

2.

General Public Utilities System j

Short-Ter= Debt Outstanding (S000)

Short-Term Debt outstanding @ 5/31/80 Total Name of Bank GPU JCP&L Met-Ed Penelee System Revolving Credit Agreement

$50 000 $133 000

$ 99 000*

$282 000 Total Short-Term Debt

$50 000 $133 000

$ 99 000

$282 000 I

4 Temporary Investments

$ 6 100 $

$ 10 950

$ 22 084, $ 39 134 1

  • Includes $13 million of First Mortgage Bonds issued and outstanding l

i I

l l

3.

GENERAL PUBLIC UTILITIES SYSTEM June 1980 - December 1981 Forecast MAJOR ASSUMPTIONS I.

Costs and Construction Sales Per April 1980 Forecast.

1980 sales approximately the sanie as 1979.

1981 sales 4% higher than 1980.

Rate of Inflation in the Economy 1980 = 10%/ Year 1981 = 8.5%/ Year TMI Units Unit 1 in service 7/1/81.

Unit 2 out of service throughout.

O & M Expense Essentially the same as 1980 Original Budget except that S10 million has been included for load management.

Construction Total 1980-1981 construction fore-cast essentially the same as 1980 Original Budget.

No Forked River AFC.

Seward 7 going forward.

Canadian connection begun.

JCP&L 500 KV included.

515 million load management expenditures in 1981. USDOE payment of S33 million is made in December 1980.

TMI-2 Clean-up and Insurance Recovery See attached senedule.

?nergy Costs Oyster Creek returns to service in mid-June.

Five week outage in fall 1980.

Refueling in fall 1981.

Oil escalates Et 30%/ year in 1980 to S39 per bar2.el at year end for

  1. 2 oil.

Oil escalates at 20%/ year in 1981.

No PJM " cost + 10%" pricing.

Continued availability of coal-based purchased power for the System and natural gas for JCP&L.

4.

GENERAL PUBLIC UTILITIES SYSTEM Estimate of TMI-2 Recovery Cost and Insurance Proceeds (S Millions) 1979 1980 1981 I)

Non-Nuclear Fuel Recovery Costs S 95 S 90 S 90 Nuclear Fuel Replacement Core 6

3 1

Total Recovery Cost S101

$ 93 S 91 Non-Nuclear Fuel Insurance Proceeds S 20 S 73 S 55 Nuclear Fuel Insurance Proceeds 50 13 Total Insurance Proceeds S 70

$ 86 S 55 Cumulative Recovery Costs S101 S194 S285 Cumulative Insurance Proceeds 70 156 211 Over or (Under) Collected S(31)

S(39)

S(74)

(1) Does not include costs charged to expense which are approximately

$10 million per year during the restoration period.

1

5.

II.

Financing Permanent Financings

$50 million Penelec bond in first quarter 1981.

S50 million JCP&L bond in third qusrter 1981.

None for Met-Ed.

No GPU common stock.

Short-Term Debt No change in System limit or in operating company sublimits.

Met-Ed exceeds $105 million sublimit in April 1981.

Subsidiary Dividend to GPU Penelec pays out 100% of 1980 earnings.

JCP&L and Penelec pay out 100%

of 1981 earnings.

Met-Ed pays no dividend.

Capital Contributions to Subsidiaries None in 1980 or 1981.

GPU Dividend 7or financial forecasting purposes, no GPU common stock dividend is assumed so that a dividend policy is not implied.

The dividend policy will be reviewed quarterly by the GPU Board of Directors.

6.

III.

Ratemaking Base Rates Jersey Central Filed for $173 million of which (1)

S51 million is to amortize Forked River over 10 years without return (2) 522 million is for TMI-1 and (3) $100 million is for higher O&M, increased rate base, higher return allowance and the like.

S60 million interim allowed June 1, 1980.

$15 million additional allowed January 1, 1981.

$51 million allowed July 1, 1981 to amortize Forked River.

No increase in base rates for TMI-l return to service but S16 million amortizetion of deferred energy ends on July 1, 1981.

Met-Ed Will file for S73 million of which (1)

S34 million will be for TMI-l and (2)

$39 million for non-TMI related cost increases.

Will complain against temporary rates and will ask for interim.

No change in rates from complaint against temporary rates or from interim application.

$25 million allowed January 1, 1981 for non-TMI costs.

$27 million allowed July 1, 1981 for TMI-l return to service.

Penelec Will file for $64 million of which (1)

$15 million will be for TMI-1, (2)

$49 million will be for non-TMI related cost increases and (3) that there be no reduction of' base rates for the expira-tion of amortization on the pre 7/78 energy clause.

Will complain against temporary rates.

No change in rates from complaint against temporary rates.

$30 million allowed January 1, 1981 for non-TMI costs.

$12 million allowed July 1, 1981 for TMI-l return to service.

7.

Energy Cost Recovery Jersey Central September 1980: S73 million allowed.

This is a judgment figure representing something between (a) full tariff implementation of $112 million and (b) recovery of current cost only of $20 million.

March 1981:

S80 million representing full tariff implementation.

September 1981:

Reduction of $52 million representing full tariff implementation with TMI-1 savings reflected.

Met-Ed January 1981:

No change in current billing factor which is sufficient to recover current cost in 1981 pending return of TMI-l to service.

July 1981:

Reduction of $55 million representing savings from TMI-l generation.

January 1982:

Reduction of $25 million representing (a) reduction of $55 million from completion of 18 month TMI deferral recovery and (b) increase of S29 million representing 1982 energy cost estimate.

Penelec January 1981:

$21 million increase to keep energy recovery approximately current pending TMI-l return to service without over-recovery.

July 1981:

No change with TMI-l return.

January 1982:

No change.

End of amortization of TMI deferred costs is enough to offset 1982 cost increase.

CENERAL PUBLIC UTILITIES SYSTEM Rate Increases from Current Tariffs (Mills /KWH)

JCP&L Met-Ed Penelec Increases Cum.

Increases Cum.

Increases Cum.

Base Energy Total Base Energy Total Base Energy Total 1980 Jun Jul Aug Sep 5.7 5.7 Oct 5.7 Nov 5.7 Dec 5.7 1981 Jan 1.2 6.9 3.1 3.1 2.3 2.0 4.3 Feb 6.9 3.1 4.3 Mar 6.2 13.1 3.1 4.3 Apr 13.1 3.1 4.3 May 13.1 3.1 4.3 Jun 13.1 3.1 4.3 Jul 3.9 17.0 3.5 (6.8)

(0.2) 1.1 5.4 Aug 17.0 (0.2) 5.4 Sep (3.5) 13.5 (0.2) 5.4 Oct 13.5 (0.2) 5.4 Nov 13.5 (0.2) 5.4 Dec 13.5 (0.2) 5.4 Average Customer Cost Base Energy Total Base Energy Total Base Energy Total current Tariff 34.7 35.9 70.6 29.3 34.5 63.8 41.6 19.0 60.6 Increases 5.1 8.4 13.5 6.6 (6.8)

(0.2) 3.4 2.0 5.4 Dec. 81 Tariff 39.8 44.3 84.1 35.9 27.7 63d 45.0 21.0 66.0 t Increase 158 23t 194 235 (25)t et 84 lit 9

co h

CENERAL PUBLIC UTILITIES CORPORATION i

Projected Net Short-Term Debt May 1980-December 1981

($ Millions) 1980 1981 May June July g.

Sept.

Dec.(Z)

Ma r.

June Sept.

Dec.

Jersey (Central

$133

$125 $130 $125

$114

$106 77 79 17 44 Met-Ed l) 88 101 96 94 96 101 98 125 106 79 Penelec 14 4

. CPU Corp.(3) 44 46 43 46 4a 50 41 25

_3 System Total

$265

$272 $269 $265

$258

$271 216 y

126 123 (1) Includes $13 million of First flortgage Bonds Issued and Outstanding to Banks (2) Includes approximately $33 of DOE Deferred Payments - JC-$18; ME-$10; PE-$5.

(3)'For financial forecasting purposes, no common dividends have been included.

?

4 4

CPU OPERATING COMPANIES Statement of Cash Requirements June-December 1980

($ Millions)

JCP&L Het-Ed Penelec Total Requireuents for Fun _ds I.

Deferred Energy Energy Cost - PUC 257 117 112 486 Energy Billings.to Customers 297 157 121 5/0 Net Deferred Energy (35)

(40)

(9)

(84)

II.

IMI-2 Repair &. Restoration Expenditures

  • 14 28 14 56

-Insurance Proceeds 10 20 10 40 Net 1NI-2 Expenditures 4

8 4

16 III.

Construction Construction & Refinancings 96 46 73 215 Net Internal Sources **

92 32 124 Net Construction

_ 4_

46

_ 41,

,, 91 Net Deficiency (Generation) of Funds (27) 14 36

_23 Source,of Fun _ds, 1

Rank Borrowings (27) 14 14 1

Permanent Financings o

Temporary Investments 22 22 Total (27) 14 36 23 4

  • Replacement of nuclear fuel core included in construction
    • Net of Items I and II f

w

..4-4-

GPU OPERATING COMPANIES Statement of Cash Requirements Year 1981

($ Millions)

JCP&L Het-Ed Requirements for Funds

-~~~Penelec Total I.

Deferred Energy Energy Cost - PUC 496 189 201 886

. Energy Billings to Customers 549 245 224 1 018 Net Deferred Energy (53)

(56)

(23)

(132)

II.

THI-2 Repair & Restoration Expenditures

  • 22 45 23 90 Insurance Proceeds 13 28 14 55 Net THI-2 Expenditures 9

17 9

35 III.

Construction t

Cor.struction & Refinancings 163 65 122 350 Net Internal Sources **

131 48 74 253 Net Construction 32 17 48 97 Net Deficiency (Generation) of Funds (12)

(22) 34 Source of Funds Bank Borrowings (62)

(22)

(14)

(98)

Permanent Financings 50 50 100 Temporary Investments -

(2)

(2) g H

Total 112)

(22) 34

  • Replacement of nuclear fuel core included in construction
    • Net of Items I and II i

12.

GENERAL PUBLIC UTILITIES SYSTEM Earnings Forecast (S Millions)

GPU GPU JCP&L Met-Ed Penelec Corp.

Consol.

1980 Net Income S 28

$ (12)

$ 28 S(18)

$ 26 Earnings Per Share S0.42 Return on Common 4.2%

(3.2)%

6.7%

1.7%

Interest Coverage 2.08 0.98 2.20 Preferred Coverage 1.26 0.78 1.34 1981' Net Income S 37 S

6

$ 37 S(14)

S 66 Earnings Per Share

$1.08 Return on Common 5.5%

1.6%

8.8%

4.6 Interest Coverage 2.11 1.80 2.25 Preferred Coverage 1.37 1.02 1.49 I

e l

l l

l GENERAL PUBLIC trrILITIES SYSTEM Capitalization (S. Millions)

Jersey Central Met-Ed Penelec Consolidated 3F0 IIII 1980 1981 1980 ITFF.

W5 fiir capitalization Long-Term Debt 893 932 542 540 688 731 2 177 2 257 Preferred Stock 204 202 140 140 169 166

,513 500 Common Stock 677 677 366 372 421 421 1 419 1 485 Total DN FIIT F6H 1 052 F27E D TI 4 109 M 56 Short-Term Debt 106 44 88 66 14 258 110 Total 1 880 1 855 1 136 1 118 1 292 1 318 4 367 4 360 Capitalization Ratios - t Long-Term Debt 50 47 52 50 52 48 51 48 54 53 55 55 53 50 53 52 Preferred Stock 12 11 11 11 13 12 13 13 13 13 13 13 12 12 12 11 Common Equity 38 36 37 37 35 32 36 33 33 33 32 32 35 32 35 34 Short-Term Debt 6

2 8

6 1

6 3

Total 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 100 H

ta e

GPU SYSTEM:

TOTAL FORECASTED SHORT-TERM DEBT BALANCE 500 l

I I

I I

I I

I I

I I

I I

I I

I I

I I

I I

I I

i 1

450 400 M

I L 350 L

I 0 300

, s!. c #. g i n ty,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,,, -

N D 250 s

O r

L SHORT-TERM DEBT L 200 A

R ASSUMES NO Conn 0N STOCK DIVIDEND 100 50 g

a I

I I

I I

I I

I I

I I

I I

I I

I I

I I

I I

I I

I 0

JAN MAR MAY JUL SEP HOU JAN MAR MAY JUL SEP NOU

/-------------1980------------/---------------1981-------------/

4

GPU CORP.

FORECASTED SHORT-TERM DEBT BALANCE 200 l

l g

i i

i g

180 160 M

I L 140 L

I O120 N

D 100 0

L L 80 R.c.n. tinir A

~~~~~~~'''''''''''''''''''''''''''''''''''''''''

R S 60 assunts no comon stocr otvincno 40 SHORT-TERN DEST 20 -

g tn I

i i

l l

I I

I I

I l

l I

I I

I I

I I

WI I

I o

JAN MAR MAY JUL SEP NOV JAN MAR MAY JUL SEP NOV l

l

/-------------1980------------/---------------1981-------------/

JCP&L FORECASTED SHORT-TERM DEBT & DEFERRED ENERGY BALANCE 200 g

g g

i 180 160 M

DEFERRED ENERGY I

R.c.A. Linst L 140

/,

g-----------------------------------------.-

E l

0 120

/

N 3

/

D 100 N

0 5

i L

\\

L 80

\\

ese nittion sono A

s sHORT-TERM DEBT R

S 60 -

'\\

\\

7_

N

/

40

\\

/

20 -

s.

m I

I I

I l

I I

I l

I l

l I

I I

I I

I I

I I

I I

o JAN MAR MAY JUL SEP NOU JAN MAR MAY JUL SEP NOU

/-------------1980------------/---------------1981-------------/

1

MET-ED:

FORECASTED SHORT-TERM DEBT & DEFERRED ENERGY BALANCE 200 g

i g

i g

i g

i g

i i

i g

i g

i 180 160 M

I L 140 L

I O120 N

R.c.a. LinIT L

SHORT-TER ST x

L 80 N

A N

R

% s S 60 N_-

DEFERRED ENERGY N

40 -

N N N 20 N

~

N 4

N I

I I

I I

I I

I I

I I

I I

I I

I I

I I

I I

I li O

JAN MAR MAY JUL SEP NOU JAN MAR MAY JUL SEP NOU f_____________iggo____________f_______________gggg_____________f

)

1

PENELECl FORECASTED SHORT-TERM DEBT & DEFERRED ENERGY BALANCE 200 l

I I

I I

I I

l l

l l

l l

l l

l l

l l

1 l

l l

l 180 160 M

I L 140 L

I O120

. R..C.A. L.IMIT............................................, _

g D 100 0

L L 80 A

R S 60 40

~

DEFERRED ENERGY

/. -.

r%_%\\

-./

$50 MILLION

~

/

'. N 20 - "--/

sono N

e SHORT-TERM DEBT oo

'I l

l l

I I

I I

I l

l l

D t-b L l o

JAN MAR MAY JUL SEP NOV JAN MAR MAY JUL SEP NOU

/-------------1980------------/---------------1981-------------/

.

Retrieved from "https://kanterella.com/w/index.php?title=ML19318A374&oldid=4790158"