ML19329B068

Forwards 1977 Annual Financial Rept,1977 Fourth Quarter Review & Estimate of Cash Position & Source of Funds for 1978.W/o Encl

ML19329B068
Person / Time
Site:	Davis Besse
Issue date:	04/17/1978
From:	Maugans E CLEVELAND ELECTRIC ILLUMINATING CO.
To:	Saltzman J Office of Nuclear Reactor Regulation
References
NUDOCS 8001300666
Download: ML19329B068 (3)

Text

m THE CLEVELAND ELECTRIC ILLUMIN ATING COMPANY ILLUMINATING 6 LOG. e PUBLIC SQUARE e CLEVELAND OMIO 44101 e TELE PHONE t216) 6231350 e MAIL ADORESS PO BOX 5000 Serving The Best Location in the Nation Edgar H. Maugans VICE RESiCENT & COPef ACLLER April 17, 1978 k: ,

Jerc=e Salt:=an, Chief :6 E

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Antitrust & Indemnity Group ,

] j Nuclear Reactor Regulation L r-Nuclear Regulatory Cc= mission 2 [-

Washington, D.C. 20555 5,

{ -4 Re: Decket !!o. 50-3h6 " C3 5

Retrospective Premium Guaraniee

Dear Mr. Salt =an:

The Cleveland Electric Illuminating Cc=pany hereby prcvides the documents described below and enclosed herewith as evidence of its guarantee of itc share ($5,138,000) of the retrcspective premium which may be levied against the Davis-3 esse Unit No.1 reactor licensees during calendar year 1978.

1. The Cleveland Electric Illuminating Cc=pany 1977 Annual Report which includes certified financial statements for tha calendar year 1977.

2. The Cleveland Electric Illuminating Cc=pany 1977 Fourth Quarter Quarterly Review which includes financial statements for the quarter ending December 31, 1977 (the 1978 First Quarter Quarterly Review is not yet available).

3 An Estimate of Cash Position And Scurce Of Funds for Calendar Year 1978 fer both operatiens and Ccnstructicn Prcgra=, acecm-panied by underlying assu=ptiens, showing a cash balance at year end even if the Cc=pany's maxi =um pemissible retrospective premium is required to be paid during the year.

Accordingly, The Cleveland Electric Ill'M rating Cc=pany believes that it vill not have to curtail any part of its planned 1978 ccnstruction program expenditures 6 ' ring 1978 shculd it be required te pay any retrespective premium in the a= cunt of $5,138,000 at any-ine during the year.

Sincerely,

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Edgar h Maugans Enclosures 71ce --.sident & Centrc r cc: Ecnald G. Nichclecn p Vice President, Finance of Toledo Edisen Cc=pany 4

3001300(:4:/o

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'(1) Includes proceeds from 1977 financin6 for construction purposes in 1978.

(2) Includes depreciation and adjustment of accrued items to cash. Excludes retained earnings en the assumption that, contrary to ec=pany expectations, all 1978 earnings after taxes will be paid out in dividends.

(3) Based on 51 38% undivided tenant-in-common ownership interest in Davis- i Besse Unit No. 1.

(l+) In anticipation of expected future construction program permanent financing.

Certificaticn I, Edgar H. Maugans, Vice President & Controller of The Cleveland Electric Illuminating Ccmpany, hereby certify that the fore 6cing Estimate of Cash Ebsition and Source of Fur.ds for Calendar Year 1978 is derived frem accurate

- data and reascnable assumptions and is a reasonable estimate.

I April 17, 1978 d'V^

Edgar H. augans h"

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