A800035, Forwards Iowa Resources Inc 1979 Annual Rept & Uniform Forecast Form for Util Analysts in Support of Ability to Obtain Funds for Payment of Deferred Premiums.Iowa Resources Inc Is Responsible for 50% of Premiums.Related Matl Encl
| ML19327A524 | |
| Person / Time | |
|---|---|
| Site: | Cooper  |
| Issue date: | 07/29/1980 |
| From: | Pilant J NEBRASKA PUBLIC POWER DISTRICT |
| To: | Saltzman J Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML19327A525 | List: |
| References | |
| LQA8000359, NUDOCS 8008060324 | |
| Download: ML19327A524 (19) | |
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GENERAL OFFICE y.
Ne raska Pubh. Power Distn. t P. o, Box 499, woLUMBUS, NEBRASKA 68602 s
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TELEP 4o~E i o2> s64-eser w
,e July 29, 1980 e
Director, Nuclear Reactor Regulation Attention: Jerome D. Saltzman, Chief Utility Finance Branch U.S. Nuclear Regulatory Commission Washington, DC 20355 Subj ect: Licensee Guarantee - Deferred Premiums Cooper Nuclear Station NRC Docket No. 50-298, DPR-46 Dear Mr. Saltzman.
In accordance with the requirements of 10 CFR Part 140.21, relative to deferred insurance premiums, the Nebraska Public Power District submits the following information which, we believe, demonstrates our ability to obtain funds in the amount of $10 million for payment of such premiums within the specified three month period.
Iowa Power, under the terms of a power purchase contract, has acknowledged its responsibility to assume 50% of the retrospective premium requirements in an amount not to exceed S5 million in one year. Iowa Power has chosen to utilize the type of guarantee defined in 10CFR140.21(e). Therefore, as enclosures to this letter, we are submitting the following documents in support of 50% of the required $10 million premium.
1.
Iowa Power - 1979 Annual Report 2.
Iowa Power - Uniform Forecast Form for Utility Analysts The Nebraska Public Power District has renewed a Credit Agreement, which j
is included as an enclosure, with the American National Bank and Trust Company of Chicago which indicates that said bank will lend the District-funds, not to exceed $5 million as specifically required to pay public liability claims arising from nuclear incidents. This Credit Agreement is valid through July 31, 1981 at which time the District will submit the appropriate documentation to verify the guarantee requirements for g
the following year.
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Jerome D. Saltzman July 29,1980 Page 2 We believe that the enclosed information is sufficient to demonstrate our ability to generate the necessary funds required by the deferred 8
premiism; however, should you require additional information, please do not hesitate to contact me.
Sincerely, M
Jay. Pilant Director of Licensing and Quality Assurance
/cmk Enclosures
,v Y/
Jerome D. Saltzman July 29, 1980 Page 3 STATE OF NEBRASKA )
) ss PLATTE COUNTY
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Jay M. P11 ant, being first duly sworn, deposes and says that he is an authorized representative of the Nebraska Public Power District, a public corporation and political subdivision of the State of Nebraska; that he is duly authorized to submit this information on behalf of Nebraska Public Power District; and that the statements in said ap-plication are true to the best of his knowledge and belief.
M L
Ny' M. Pilant Subscribed in my presence and sworn to before me this o?/
day of July, 1980.
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/ NOTARY PULLIC [/
My Commission expires
/, /f[8 MARLYN R. HOHNDOff
_ IIy C.assa. Emp. Det.14.1980
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Credit Agreement CRSDIT AGREEMENT, dated as of August 1,19 80, between NEBRASKA PUBLIC POWER DISTRICT (herein called the " District 7) and AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO (herein called the 7 Bank 7).
The District desirer to provide for future borrowings, and the Bank is willing to comit to lend to the District, upon the terms and conaitions herein set forth, the aggregate sum of up to
$5,000,000, in such installments ano at such times as hereinaf ter
, provided, to be evidenced by notes of the District theref or.
In consideration of the f oregoing and the covenants and conditions herein contained, the parties hereto agree as follows:
1.
Definitions.
The f ollowing terms shall, f or all pur-poses of this Credit Agreement, have the following meanings:
TArl" shall mean the Public Power and Irrigation District Law, constituting Article 6 of Chapter 70 of the Revised Statutes of Nebraska, as amendea and supplemented.
" Electric Resolution" shall mean the resolution entitled
," Electric System Revenue Bond Resolution" adopted by the Board of i
Directors of the District on August 22, 1968, as supplemented or amenced in accordance with the terms thereof.
7 Electric System Bonds" shall mean Electric Systen Revenue Bonds of the District authorized to be issued under the Electric Resolution.
." Elect ric Sy st em G ene r al Reserve Fund" shall mean the Electric System General Reserve Funo established in Section 502 of the Electric Resolution.
7Loar.s" shall mean the loans provideo 'for in this Crecit Agreement.
" Note or N ot e s " shall mean any note or notes, as the case may be, issued pursuant to this Credit Agreement by the District to evidence any Loan.
," Note Resolution" shall mean the resolution of the District entitled " Resolution Authorizing $5,000,000 Bank of Credit of 1980.",
adopted July 24, 1980 authorizing the issuance of the Notes and the execution and delivery of this Credit Agreement, a true ano correct copy of which resolution is annexed hereto as Annex A.
O-2.
Ca-itment to Lend.
The Bank hereby agrees, upon the terms and conditions herein set f orth, to make one or more Loans to the District, in accordance with the provisions of this Credit i
Agreement, on or before July 31, 1981 in an aggregate principal J
amount up to, but not exceeding $5,000,000, each Loan to be in the i
principal amount of not less than $250,000.
3.
Borrowings.
The District shall give the Bank at least two (2) days prior notice of the date ano amount of each borrowing hereuncer.
Each borrowing pursuant thereto shall take place at the principal office of the Bank at LaSalle and Washingte S tr ee ts,
Chicago, Illinois.
Not later than 11:00 o! clock A.M. on m date of each borrowing, the Bank shall, ' subject to the terms of this credit Agreement, make available to the District, Federal Reserve or other immeciately available f unds in the principal amount being borrowed, upon delivery to the Bank of a Note in such principal amount.
4.
The Notes.
Each Note shall be designated as 7 Electric System Note, Series NRC of 19807, shall be payable to the oroer of American National Bank and Trust Company of Chicago, shall be dated the date of its delivery, shall be Ieyable one year from its date of issue (subj ect to optional prepayment as provided in Section 7 hereof), ano shall bear interest (payable on the first day of each January, April, July and October) on the unpaid principal amount thereof f rom its date fluctating at the rate per annum equal to 60%
of the Bank's priue commercial loan rate on 90-day loans to its'most responsible ano substantial corporate borrowers in ef fect from time to time.
Such interest shall be computed on the basis of a 365/366-day year.
The Notes shall be executed on behalf on the District by the manual signature of its President, Treasurer or Assistant Treasurer ano its corporate seal shall be af fixed, imprinted, engraved or otherwise reprocuced thercon ano attested by the manual signature of its Secretary, any Assistant Secretary or any Deputy Assistant Secretary, and shall be otherwise in substantially the form annexed hereto as Annex B.
5.
Commitment Fee.
The District shall pay to the Bank as a commitment fee contenporaneously with the execution of this credit Agreement the sum of $5,000..
6.
Conditions Precedent to Loans.
The Bank shall not be obligated to make any loan unless at the date specified for the making thereof the District delivers to the Bank:
s (a) The opinion of the General Counsel to the District, dated as of such date, to the ef fect that:
(i) There is no litigation pending in any court, either State or Feoeral, questioning the cre-ation, organization or existence of the District or the validity of this Crecit Agreenent or the Note being issued to evidence such Loan; and.
s (ii) The District has the power to borrow the amount being loaned; to execute and deliver this Credit Agreenent; to evidence the Loans by its Notes to be mace and delivered in accordance herewith, and to perf orm and observe all of the terms and conditions of this Credit Agreement on its part to be performed and observed; and (b) A ' certificate of the President or General Manager or Treasurer or Assistant Treasurer of the District, dated as of such cate, to the ef fect that the representations and I
warranties of the District contained in Section 12 of this Credit Agreement are true and correct as of such date; and (c) A certificate of the President or General Manager or Treasurer or Assistant Treasurer of the District, dated as of such date, setting forth the aggregate amount of bonds and notes of the District that will be outstanding immediately af ter the issuance of the Note then being issued and stating that no default has occurred in the pay-ment of principal of or interest on any indebtedness for borrowed money of the District which renains uncured; and (d) The opinion of Messrs. Mudge Rose Guthrie &
Alexander, Bono Counsel to the District, dated as of such date, substantially in the form annexed thereto as Annex C; and (e) A Certificate as to Arbitrage, cated as of such date, in accordance with the provisions of Treasury Regulation Sections 1.103-13, 1.103-14 anc 1.103-15 or other applicable Treasury Regulations in ef fect on such date; and (f) Such additional certificate, instruments and other documents as the Bank or its counsel may dean neces-sary to ef fect good delivery of the Note being delivered on such 64te or evidence the aue perf ormance by the District of the conditions precedent hereunder.
7.
Optional Prenayment.
The District may prepay any Note as a whole or in part, at any time or from time to time, without penalty or premium, by paying to the Bank all or part of the princi-pal amount of the Note to be prepaid, together with the unpaid inter-est accrued on the amount of principal so prepaid to the date of such pr epayment.
Each prepayment of a Note shall be made on such date and in such principal amount as shall be specified by the District in a written notice delivered to the Bank not less than 10 days prior thereto.
Notice having been given as aforesaid, the principal amount of the Note stated in such notice or the whole thereof, as the case may be, shall become due and payable on the prepayment date stated in such notice, together with interest accrued and unpaid to the prepayment date on the principal amount then being paid; and the amount of principal and interest then due and payable shall be paid k
i (i)- in case the entire unpaid balance of the principal of any Note is to be paid, upon presentation and surrender of such Note to the i
District or its representative at the principal office of the Bank, and (ii) in. case only part of the unpaid balance of principal of any Note is to be paid, upon presentation of such Note at the principal office of the Bank f or notation thereon by the Bank of the amount of principal and interest on such Note then paid.
If on the prepayment date moneys f or the payment of the principal amount to be prepaid on such Note, together with interest to the prepayment date on such principal amount, shall have been paid to the Bank as above provided ano if notice of prepayment shall have been given to the Bank as above provided, then from and af ter the prepayment date interest on such principal amount of such Note shall cease to accrue.
If said moneys shall not have been so paid on the prepayment date, such prin-cipal amount of such Note shall continue to bear interest until pay-ment thereof at the rate provided for in Section 4 of this Credit Agreement.
8.
Anolication of Note Procean.
The proceeds of the Notes shall be used to pay amounts required to be paid by the District as a result of one or more nuclear incidents, as provided in the Price-Anderson Act, as amended' (Pub. L.94-197, as amended and as compiled in 42 U.S.C. Section 2210 and pertinent subsections of 42 U.S.C.
Section 2014, as amenced and certain regulations of the Nuclear Regulatory Ccanmission (10 C.F.R. Part 140, 'as amenced in par-ticular by 42 Fed. Reg. 46-54 (January 3,1977)) or any act or regu-lation supplemental thereto or amendatory thereof.
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9.
Payment.
The obligation to pay the principal of and interest on the Notes is a special obligation of the District payable solely from such amounts in the Electric System General Reserve Fund as may be available theref or under the District.'s bona resolutions then outstanding; crovioed, however, that such obligation to pay the principal of and interest on the Notes shall be subject ano subordi-nated in all respects to the pledge of the Revenues (as defined in a
the Electric Resolution), moneys, securities and funds created by the Electric Resolution and, orovidea further, that the obligation to pay the principal of ~ano interest on the Notes shall be subject and sub-ordinated to any payments which 'shall at any time be required to be made from Electric System General Reserve Funa pursuant to Section 713 of the Districtf s Power' Supply System Revenue Bond Resolution, adopted by the Board of Directors of the District on Septanber 29, 1972, as supplemented and amended in accordance with the terms thereof.
The District shall duly and punctually pay or cause to be paid from the Electric System General Reserve Fund, in Federal Reserve or other immeciately available f unos, the principal of the Notes and the interest thereon at the cates and place and in the manner provided herein and in the Notes according to the true intent and meaning thereof.
If the principal of the Notes becomes due and payable on a Saturday or Sunoay or a day which is a Bank holiday, such payment shall be made on the next succeecing Bank business day ano the extension of time for payment shall be includeo in computing interest in connection with such payment.
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10.' Rate Covenant.
The District covenants and agrees with the Bank that so long as any credit shall be avilable hereunder or any Note or interest thereon is unpaid it shall comply for the benefit of the Bank with requirements of Section 712 of the Electric Resolution.
11.
Neoative Covenants of the District.
The District, if and so long as credit shall be available hereuncer or any Note or interest thereon is unpaid, will not alter, amend or repeal the Note j
Resolution, or take any action impairing the authority thereby or hereby given with respect to the issuance and payment of the Notes.
12.
Renresentations and Warranties.
The District repre-sents and warrants that:
(a) The District has the power to borrow the amount provided f or in this credit Agreement; to execute and deliver this Credit Agreement; to evidence the Loans by its Notes to be made and delivered in accordance with the pro-visions hereof, and to perf orm ano observe all of the terms and conditions of this Credit Agreement on its part to be perf ormea ano observed; (b) The making anc perf ormance by the District of this Credit Agreement will not violate any provision of the Act, or any bona or note resolution of the District, or any regulation, order or decree of any court, and will not result in a breach of any of the terms of the petition for creation, as amenced, of the District or any agreement or instrument to which the District is a party or by which the District is bound; ano (c) The District, by the Note Resolution, has duly authorized the borrowing of the amount provided for in this Crecit Agreenent, the execution and delivery of this Crecit Agreement, and the making and delivery of the Notes to the Bank as herein provided; and to that ena the District war-rants that it will take all action ano will do all things which it is authorizea by law to take ano to ao in or6er to fulfill all covenants on its part to be perf ormeo and to provide for ano to assure payment of the Loans as herein provided.
13.
Acceleration of Due Date Upon Default.
If one or more of the following events of default shall occur and be continuing:
(a) Def ault shal) occur and be continuing in the pay-ment when oue of any principal or interest on any Note; (b) Any repr esentation or warranty maae herein or pursuant hereto shall prove to be untrue in any material r espect; 1
(c) Def ault shall occur in the perf ormance of any of the other. covenants or agreements of the District contained herein, and the act or mission creating such default shall continue f or a period of 30 days af ter written notice thereof shall have been given to the District; or (d) Def ault shall be made in the payment of the prin-cipal of _ or interest on any Electric System Bonos when due, and as a result of such default, the maturity of such Bonds is accelerated; then, and in any such event, the Bank shall have the right to declare the principal of and all interest then accrued on all Notes to be due and payable immediately, and upon such declaration the Notes and the interest accrued thereon shall become due and payable, anything in this Credit Agreement or in the Notes contained to the contrary notwithstanding.
14.
Defeasance.
If the District shall pay or cause to be paid, or there shall otherwise be paid, to the Bank the principal of and interest on the Notes at the times and in the manner stipulated herein, then the covenants, agreements and other obligations of the District hereunder shall thereupon cease, terminate and become void and be discharged and satisfied.
If moneys sufficient to pay the principal amount of the Notes and interest thereon until maturity or a date fixed f or prepayment shall have been paid to the Bank f or application to such purpose, the Notes and the interest thereon shall be deemed to have been paio within the meaning and with the effect expresseo in this Section.
Amcunts so set aside ano helo may be invested in obligations of, or guaranteed by, the. United States of America, orovidea, however, that said obligations shall mature not later than the maturity cate of the Notes.
All earnings fra such investments shall be paid over to the District, -as received, free and clear of any trust, lien or pledge.
15.
Notices.
All notices unoer this Credit Agreement shall be in writing and written notices shall be deemed to have been duly given if delivered or mailed by registered mail, in the case of the District, at Box 499, Columbus, Nebraska 68601, Attention: General Manager, and in the case of the Bank, at its prin-cipal office at LaSalle and Washington Streets, Chicago, Illinois 60690, Attention: George Metzger.
16.
counterparts.
This Credit Agreement may be executed in any number of counterparts, and all such counterparts executed and oelivered, each as an original, shall constitute but one ano the same instrument.
IN WITNESS WHEREOF, the District and the Bank have caused this credit Agreement to be duly signed on their respective behalfs by their of ficers thereunto duly authorized, all as of the date and year ~ first above written.
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NEBRAKSA PUBLIC POWER DISTRICT
[ SEAL]
By'h$
Y Ass'ista V Treasurer Attest:
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OA$rY R
Sssistant Secrh ary AMERICAN NATIONAL BANK AND TRUST COMPANY OF CHICAGO
[ SEAL]
By' SM
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Vice President
->.- v Attest:
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..;;istahi Secretary
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'I Annex A Resolution Authorizina $5.000.000 Bank Credit of 19_80 Be it Resolve 6, by the Board of Directors of Nebraska Public Power District, as follows:
SECTION 1.
Pursuant to the Public Power and Irrigation District Law, Article 6 of Chapter 70 of the Revised Statutes of N ebr aska, as amended and supplemented (herein called the 7Act!),
Nebraska Public Power District (herein call the l District!) shall enter into a credit agreement (herein called the 7 Credit Agreenent!)
f or one or more loans in an aggregate principal amount up to, but not exceeding, $5,000,000 from American National Bank and Trust Capany of Chicago (herein called the fBackf) in substantially the form sub-mitted at this meeting, to whict shall be annexea, as Annex A, a copy of this resolution adopted by the District.
Each loan shall be made in the principal amount of not less than $250,000 on any date on or bef ore July 31, 1981; provided that the District shall give the Bank two (2) days prior notice of the date and amount of each borrowing and shall be evidence by an Electric System Note, Series NRC of 1980 (herein called a fNotef; all Notes made under the Credit Agrement are herein collectively callea the fNotes!) of the District in the aggregate principal amount of each loan, which Note shall be issued and delivered by the District to the Bank in the principal amount and on the date of the loan evidenced thereby.
Each Note shall be pay-able-to the order of the Bank from the sources set out in Section 9 of the Credit Agreement, shall be dated the date of its delivery, shall be payable one year fra its cate of issue (subject to optional prepayment as a whole or in part, at any time or from time to time, without penalty or premium, as provided in the Credit Agreement) and shall bear interest (payable on the first day of each January, April, July and' October) on the unpaid principal amount thereof from its Cate fluctuating at the rate per annum equal to 60% of the Bank's prime commercial loan rate on 90-day loans to its most responsible and substantial corporate borrowers in ef fect from time to time.
Interest is to be caputea on the basis of a 365/366-day year.
Each Note shall be in substantially the form set forth in Annex B to the Credit Agreement.
SECTION 2.
The prcceeds of the Notes shall be applied by the District to the purpose and in the manner provided in Section 8 of the Credit Agreenent.
SECTION 3.
The President or Treasurer or Assistant Treasurer of the District are each hereby authorized to execute the Credit Agreement, and the Secretary, any Assistant Secretary or any i
Deputy Assistant Secretary of the District' are each hereby authorized to cause the seal of the District to be affixed on the Credit Agreement ana 'to attest the same, and the President or Treasurer or
Assistant Treasurer are each hereby authorized to deliver the executed Credit Agreement on behalf of the District.
-SBdTION 4.
The President or Treasurer or Assistant Treasurer of the District are each hereby authorizec to. execute the Notes by manual signature and the Secretary, any Assistant Secretary or any Deputy Assistant Secretary are each hereby authorized to cause the seal of the District to be af fixed, imprinted, engraved or other-wise reproduced on the Notes and to attest the same.
Any of the foregoing of ficers or the General Manager are hereby authorized to deliver the executed Notes in accordance with the provisions of the
- Credit Agreement.
SBCTION 5.
The President or Treasurer or Assistant Treasurer of the District and its General Manager, Secretary, Deputy General Manager, any Assistant General Manager, any Assistant Secretary or any Deputy Assistant Secretary art, and each of them hereby is, authorized to do and perform all things and to execute all papers in the name of the District or otherwise, e,s they dean advis-s able, and to make all paymenta:, necessary or cavenient in their respective opinions, to the end that the District may carry out the
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obj ects of this resolution and its obligations under the terms of the Credit Agreement and of the Notes.
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ANNEX B t
l (FORM OF NOTE)
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NEBRASKA PUBLIC POWER DISTRICT e
ELECTRIC SYSTEM NOTE, SERIES NRC OF 19 80 No.
S FOR VALUE RECEIVED, the undersigned, NEBRASKA PUBLIC POWER DISTRICT (the 7 District 7), a public corporation and political subdi-vision organized and existing under and by virtue of the laws of the State of Nebraska, hereby promises to pay to the order of Amercian National Bank ano Trust Company of Chicago (the 7 Bank 7) on
, 19 upon presentation v.o surrender of this Note at the principal office of the Bank, the principal sum of Dollars
($
), in lawful money of the United States of America, ano to pay interest (payable on
, 19 and quarterly thereafter on the first day of each January, April, July and October) on said principal sum at said office in like money fram the cate hereof fluctuating at the rate per annum equal to 60% of the Bank!,s prime commercial loan rate on 90-day loans to its most responsible and substantial corpo-rate borrowers in ef fect from time to time, buch interest shall be computea on the basis of a 365/366-day year.
This Note is a special obligation of the District and is one of a duly authorizeo issue of notes of the District (the 7 Notes 7) issued and to be issued under and pursuant to the Public Power and Irrigation District Law of Nebraska, as amended ano supplemented (herein called the 7Act7), and under and pursuant to a resolution of the District, adopted July 24, 1980, entitled 7 Resolution Authorizing
$5,000,000 Bank Credit of 19807 (the 7 Note Resolucion"), and under and pursuant to a Credit Agreement (the 7 Credit Agreement 7), dated as of August 1,1980, by and between the District and the Bank.
The obligation to pay the principal of and interest on this Note is a special obligation of the District payable solely from such amounts in the Electric System General Reserve Fund (as defined in the Credit' Agreement) as may be available theref or unoer the District.'s Bond resolutions then outstanding; orovided, however. that such obligation to pay the principal of and interest on this Note is subject ano suboroinated in all respects to the pleoge of the reve-nues, moneys, securities ano f unos created by the Electric Resolution (as defined in the Creoit Agreement); and, provided further, that the obligation to pay the principal of and interest on this Note is subject and subordinated to any payments which shall at any time be
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required to be made from the Electric System General Reserve Fund pursuant to Section 713 of the District!s Power Supply System Revenue Bond Resolution, adopted by the Board of Directors of the District on September 29, 1972, as supplemented and amended in accordance with the terms thereof.
This Note is subject to the terms and conoitions contained in the Note Resolution and the Credit Agreen-2nt, copies of which are on file at the principal of fice of the District, and ref erence is made thereto f or a complete statement of such terms ano conditions.
The District shall have the right to prepay this Note as a whole or in part, at any time or from time to time, without penalty or prenium, in accordance with the terms of the Credit Agreement.
The prepayment date and the principal amount of the Note to be pre-paid shall be specified by the District in a written notice to the Bank not less than 10 days prior to any prepayment.
If on the pre-payment date moneys for the payment of the principal amount of this Note to be prepaid, together with interest to the prepayment date on such principal anount, shall have been paid to the Bank as above pro-vided, then frca and af ter the prepayment date interest on such prin-cipal amount of this Note shall cease to accrue.
If said moneys shall not have been so paio on the prepayment date, such principal amount of this Note shall continue to bear interest as provideo above until payment thereof.
This Note is not an obligation of the State of Nebraska and the Act provides that the State of Nebraska shall never pledge its credit or funos, or any part thereof, for the payment or settlement of any indebtedness whatsoever of the District.
IN WITNESS WHEREOF, Nebraska Public Power District has caused this Note to be signed in its name and on its behalf by its President or Treasurer or Assistant Treasurer, and its official seal to be hereunto affixec ano attested by its Secretary or Secretary, as of the day of
, 19 NEBRASKA PUBLIC POWER DISTRICT By
[ SEAL]
Attest:
.s e
ANNEX C
, 19 Nebraska Public Power District Columbus, Nebraska American National Bank ano Trust Company of Chicago Chicago, Illinois Gentlemen:
We have examined the record of proceedings relating to the issuance of the $
Electric Systen Note, Series NRC of 1980, No.
, dated
, 19 (the," Note"), of Nebraska Public Power District (the 7 District"), a bocy corporate ano politic, constituting a public corporation ano political subdivision of the State Nebraska.
The Note is issued unoer ano pursuant to Chapter 70, Ar ticle 6, of the Revised Statutes of the State of Nebraska, as amenoeo (the "Act,"), and unoer and pursuant to a Credit Agreenent (the TCredit Agreement,"), between the District and American National Bank ano Trust Company of Chicago (the " Bank."), dated as of August 1,
)
1980, authorized by a resolution (the," Note Resolution.". ) of the District adopted July 24, 1980 ano entitleo," Resolution Authorizing
$5,000,000, Bank Creoit of 1980.".
The Note is payable to the order of the Bank, matures on 19 (subject to prepayment in accordance with the terms of the Credit Agreenent), and bears interest (payable on
, 19 and quarterly thereaf ter on the first day of each January, April, July and October) from its date fluctuating at the rate per annum equal to 60% of the Bank's prime commercial loan rate on 90-day loans to its most responsible and substantial corporate borrowers in effect frcan time to time.
The obligation to pay the principal of ano interest on the Note is a special obligation of the District pyable solely fran such amounts in the Electric System General Reserve Fund (as defined in the Credit Agreement) as may be available ther ef or unoer the District's bond resolutions then outstanding; provideo, however, that such obligation to pay the principal of and interest on the Note is subject and subordinated in all respects to the pleoge of the Revenues, moneys, securities ano funds created by the Electric Resolution (as defined in the Credit Agreement); and provided further, that the obligation to pay the principal of and interest on the Note is subject ano suboroinated to any payments which shall at any time be required to be made f rom the Electric System General Reserve Funa pursuant to Section 713 of the District,'.s Power Supply
. System Revenue Bono Resolution, aoopted by the Boaro of Directors of
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the District on September 29, 1972, as supplemented and amended in accordance with the terms thereof.
We are of the opinion thats 1.
The District is duly created and validly existing under the provisions of the Act, with power to adopt the Note Resolutions to enter into the Credit Agreement, to issue the Note thereunder and to make and perf orm the covenants contaj.ned in the Credit Agreenent.
2.
The Note Resolution has been duly adopted by the District, is in full force and effect and is valid and binding on the District and enforceable in acoordance with its terms, and the Credit Agreement has been duly authorized and executed by the District, is in full force and effect, is valid and binding upon the District and enforceable in accordance with its terms.
3.
The Note has been duly authorized and issued by the District in accordance with law and in accordance with the Note Resolution and the Credit Agreenent, and is valid, binding and direct N
obligation of the District enforceable in accordance with its terms and entitlec to the benefit of the Act ano of the Credit Agreement.
4.
Uncer the existing statute, regulations and court decisions, interest on the Note is exenpt from Feoeral income taxes.
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The opinions containea in paragraphs-2 and 3 above are qualified to the extent that the enf orceability of the Note Resolution, the Credit Agreement anc the Note, respectively, may be
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limited by any applicable bankruptcy, moratorium or similar laws relating to the enf orcement of creaitors' rights.
i We have examined the Note, as executed, ano, in our opin-
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ion, the f orm of said Note and its execution are regular and proper.
Very truly yours, I
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IOWA POWER AND LIGHT COMPANY UNIFORM FORECAST FORM FOR UTILITY ANALYSTS (Estimates shown below are subject to significant change
.if actual requirements vary from assumed requirements) 5-Year Actual Compound Projections Growth 1979 1980 1981 1982 1983 1984 Rate 1.
SALES AND LOAD DATA Elactric Sales-kWh(Millions)
' 32',
4,500 4,700 4,937 5,194 5,460 4.7%
Elsctric Peak Load-mW 1,119 1,175 1,228 1,290 1,348 1,411 4.7%
Lord Factor 48.8%
48.2%
48.2%
48.2%
48.6%
48.7%
Generating Capability-mW 1,103 1,103 1,203 1,203 1,414 1,414-Purchases from NPPD-mW(Item 5) 389 389 389 389 389 389 Total Capability-mW 1,492 1,492 1,592 1,592 1,803 1,803 Snits to other utilities confirmed-nN 100 90 50 150 G2s Sales-Ccf (Millions) 362 339 337 335 335 335 (1.6)%
!2.
_ FUEL FOR ELECTRIC REQUIREMENTS Cocl 5-Yr. Total' 50%
53%
54%
54%
56%
58%
55%
Nuclear 48 45 44 44 42 40 43 Oil / Gas 2
2 2
2 2
2 2
Total 100%
100% __100%
100%
100%
100%
100%
1
_ CAPITAL REQUIREMENTS ($ Millions)
Construction Expenditures Electric - Generation. (Item 7)
$ 41 55 54 44 44 17
$214 Electric - Other 25 26 23 30 24 24 127 Grs 9
8 8
8 9
10 43 Total-Excludes AFUDC 75 89 85 82 77 51 384 Other Capital Requirements 23 (9) 1 6
9 14 21 Total Capital Requirements S 98 80 86_
88 86 65 405 Memo-AFUDC at Cost of Capital 5
8 9
15 10 7
S 49 SOURCES OF CAPITAL ($ Millions)
Intsrnal Generation of Funds Depreciation S 23 25 28 29 33 36 S151 Nat Tax Deferrals 7
6 7
7 8
10 38 Nat Investment Tax Credit 6
5 7
8 7
3 30 Other-Excludes AFUDC 1
(4) 2 6
4 Subtotal 37 36 42 40 50 55 223 External Financing Requirements 61 44 44 48 36 10 182 Total S 98 80 86 88 86 65 405
% Internal Funds 38%
45%
49%
45%
58%
85%
55%
T:ntative External Financing Szurce of Funds Long Term Debt
$ 42 32.
30 36 7
$105 Debt Retirement (7)
(10)
(1)
(10)
(9)
(3)
(33)
Prsferred Stock Common Stock 20 20 40 i
16 9
27 30 9
9 84 Sh:rt-Term Debt 10 (7)
(12)
(8) 16 (3)
(14)
S 61 44 44 48 36 10 182 Sh2t -i=.m Debt Balance-Year End S 44 37 25 17 33 30 f.cre2 Date:
February 15,.1980 e
e IOWA POWER AND LICllT COMPANY UNIFORM FORECAST FORM FOR UTILITY ANALYSTS 5.
IANG-TERM POWER PURCilASE CONTRACT Under a contract with the Nebraska Public Power District (NPPD) the Company is purchaaing one-half of the output of the 778 megawatt Cooper Nuclear Station at Brownville, Nebraska, which was placed in commercial service on July 1, 1974.
As of December 31, 1979, NPPD had issued $467.6 million of Nuclear Facility Revenue Bonds (average interest rate of 5.8%) to finance the construction of this station. A total of $429 million of such Bonds were outstanding on December 31, 1979.
The Company has agreed to pay, during the period expiring in 2004, one-half of the monthly fixed and operating costs of the plant and its proportionate share of the nuclear fuel costs based upon energy delivered.
fixed costs include the debt service payments necessary to retire theThe monthly principal and to pay the interest on one-half of the Bonds issued by NPPD.
The amount of debt service payments on a monthly basis approximates $1.4 million and is not contingent upon the plant being in operation.
The Company reflects on the Balance Sheet as liability the portion (50%) of NPPD's Nuclear Facility Revenue Bonds outstanding which the Company is obligated to pay over the term of the contract, with a like amount representing its rights to purchase power under the contract as an asset.
Inclusior. of such amounts on the Balance Sheet has had no effect on net income nor on any amounts in the Statements of Income inasmuch as no changes have been made to date in the manner in which the payments to NPPD are recovered in the ratemaking process.
6.
RATE MATTERS The Iowa statutes permit the Company to place new rates into effect 120 days af ter filing. or such earlier time not sooner than 30 days af ter the filing as the Iowa State Commerce Commission (ISCC) may allow, subject to refund pending final action by the ISCC.
The Company filed requests for new electric rates in June 1978,and new gas l
rates in August 19 78, to be placed into effect on January 1 1979 aad designed to increa;e annual electric and gas revenues over r,evenue,s rinally approved by the Co.nmission by about $27 million and $4.4 million, respectively.
The Company placed in effect on January 1, 1979, such portions of the new rates to increase annual electric and gas revenues by about $21 million and
$2.4 million, respectively, subject to refund, above the previously approved Due to increased costs the remaining portions of both increases rates.
have since been placed in effect.
The entire electric increase has been in effect since October 1, 1979, and the entire natural gas rate increase has been in effect sitee January 1, 1980.
The new rates are intended, among other things, to produce sufficient revenues to offset increased operation and interest expenacs and to provide for an appropriate return on Iowa Power's investment in Council Bluff's Unit 3 which was placed into service in December 1978.
The new electric rates also provide subject to refund, for the recovery during the four years ending 1982 of $1.4 million of the nuclear project costs which were estimated to have no value for any future resumption of planc to construct a nuclear generating facility in central Iowa.
IOWAPOWERANDLIGHTCOMPANY 3
UNIFORM FORECAST FORM FOR UTILITY ANALYSTS All electric and gas sales are subject to an Energy Cost Adjustment Clause and a Purchased Gas Cost Adjustment Clauce, respectively.
7.
PLANNED ELECTRIC CAPACITY ADDITIONS
_Date
_ Size Location-Fuel Dec. 1980 15% of 675 nM Unit (100mW)
Ottunua - Coal May 1983 32.5% of 650 mW Unit (211mW)
Louisa - Coal Dec. 1984 15.4% of 650 mW Unit (100mW)
Guthrie - Coal Company
Contact:
Phillip D. Ehm, Tel. 515-281-2349 i
e i
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