ML19329C929
| ML19329C929 | |
| Person / Time | |
|---|---|
| Site: | Davis Besse  |
| Issue date: | 12/31/1969 |
| From: | TOLEDO EDISON CO. |
| To: | |
| Shared Package | |
| ML19329C911 | List: |
| References | |
| NUDOCS 8002200906 | |
| Download: ML19329C929 (24) | |
Text
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TOLEDO EDISON
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HIGHLIGHTS
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1969 1968 Change 10-Year Growth Pattern
$2.54
$2.35
+8%
EARNINGS PER COMMON SHARE
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Cont;nuing high rate of sales growth combined with efficient operations produced an excellent increase up 103%
in eamings, despite continually rising costs.
$1.63
$1.51
+8%
DIVIDENDS PER COMMON SHARE Up for ninth consecutive year. The quarterly divi-up 133%
dend declaration was increased 3 cents in Decem-ber to 43 cents per share. Dividends now equal
$1.72 per share on an annualized basis.
$88.1
$80.1
+ 10%
REVENUES (Millions)
Continuing vitality of our service area produced a strong 9% gain in revenues from our system. In-creases in short-term power sales to neighboring up 89%
utilities added to the gain.
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$69.0 $63.0
+ 10 %
OPERATING EXPENSES (Millions)
Storm damages required above normal expenditures for repair maintenance. Increasing loads required more fuel usage and purchases of power for resale.
up 90%
Tax, coal, freight, wage and other costs reflected increased rates and prices.The 10% income tax sur-charge continued throughout 1969 as well as 1968.
5,554 4,961
+ 12%
TOTAL ENERGY SALES (Millions of Kilowatt Hours)
Expanding industrial activity and substantially in-creased usage in the residential and commercial Up 116%
classifications resulted in excellent 9% sales growth within our system. Also, short-term sales to other utilities continued at a higher level.
i 897 860
+4%
SYSTEM PEAK LOAD (Megawatts)
Record peak load for our area was recorded during the summer due to higher industrial activity and in-creased air-conditioning load. Despite this high Up 86%
peak on our own system, the Company was in a po-sition to provide power to other utilities during the peak period. Total peak load was 1089 megawatts.
1959 196E
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TOLEDO EDISON ON THE COVER are depicted some of the generating facilities, included is our ways your management is meeting the Davis-Besse Nuc! ear Power Station.
y-challenges of the seventies.
A new office building, under construction
' f The growing demand for power in this in downtown Toledo, will provide a place vigorous area your Company serves will from which employees can serve our cus-
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be rnet economically and re:iably based tomers more effbiently and conveniently.
on regional planning. Plans call for addi-Genuine concern, backed by scientific I $
tional high voitage transmission lines research, will guide us in serving this area O. --mtik interconnecting large, jointly-owned, while protecting the total environment.
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John K. Davis l
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To Our Shareowners:
The advent of a new decade gives me the opportun-nical and physical problems to attain our goal.
ity to reflect upon some of the achievements which These past few years have established the base have contributed to the profitable growth of your from which we will overcome another challenging Company and, at the same time, to preview a few of decade. We will meet new and more complex matters the complex challenges ahead in the Seventies.
in such areas as the environment, nuclear power, Earnings per share in 1969 increased 8 per cent esthetics, sociological changes, and more restrictive to $2.54 and have risen 103 per cent in the past dec-governmental requirements. In addition, a record ade. The quarterly dividend rate was increased in amount of money to finance necessary ccnstruction December, marking the 48th consecutive year in to meet energy requirements will be needed. We will which cash dividends have been paid and the ninth be confronted with high interest rates, inflation and consecutive annual divide id increase, its related problems, and the possibility of increased Your Company's consistent 10-year growth record service rates, among other challenges.
is illustrated on the precedir:g page, it was, in my But the personnel and other resources to meet and opinion, a period of fine growth, and you have shared overcome these challenges are available, and meth-in the rewards.
ods, techniques and technolcgies are continually be-Total revenues gained 10 per cent in 1969 to more ing improved and new ones developed to assist us than $88 million. This was the result of a fine 9 per toward providing continued prcfitable growth.
cent increase in our own system revenues in 1969 Inter-company cooperation h the areas of power accompanied by a sizable increase in short-term pooling, coordinated system plenning and operation sales to other utilities. Total energy sales were more and bulk power interconnections will greatly assist in than 5.5 billion kilowatt-hours.
meeting the future demands for adequate and reliable Kilowatt-hour sales of the electric utility industry energy. This unified approach to the future should traditionally have grown at an annual everage rate of also provide substantial economic benefits in our about 7.2 per cent, doubling every ten years on a com-operations.
pounding basis. Our annual system growth rate in Our ultimate objective, of course, will continue to kilowatt-hour sales has been over 9 per cent in recent be to realize a fair and reasonabie profit on the in-years. This exceptionally good record by your Com-vestment in our company. And, like the artist who, pany reflects the fine growth of our residential, com-when asked to name his greatest painting, replied, mercial and industrial loads on our system.
"My next one," I believe that by overcoming the chal-It is gratifying for me to note that we have pro-lenges of the next decade we, too, will produce some gressed in spite of difficult problems. The last ten of our greatest achievements.
years required a large amount of new money, new en-On behalf of your Board of Directors and manage-gineering concepts, accurate and careful planning, ment, I express appreciation to our shareowners for improved methods and the efforts of qualified and your continued confidence in the Company. We will dedicated employees to overcome the financial, tech-continue to exert our best efforts to justify your faith.
Sincerely,
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President 3
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TheYear1969-Climax of a Decade
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Earnings per common share in 1969 were $2.54, cli-sions, however, in most of our electric rates enabled maxing a decade of profitable growth by your Com-us to recover most of these increased costs. Pur-pany. The past year's earnings represent an excellent chased power was up by 36 per cent, due to the avail-Increase of 8 per cent over the $2.35 earned in 1968.
ability of surpius energy from the Ohio Valley E!ectric Earnings per share during the past decade increased Corporation. (See Notes on page 18.)
103 per cent.
The small 2 per cent increase in depreciation re-The common stock dividend rate was increased in suited frcm the additional depreciation on new facili-December by your Board of Directors from 40 to 43 ties being partly offset by a reduction of depreciation cents. The new rate is equivalent to $1.72 per share rates from 3 4 to 3.2 per cent as of January 1,1969.
on an annualized basis and marks the ninth consecu.
General taxes were up 16 per cent, or $1.2 million, tive year in which dividends were increased.
Property. tax increases were due to both higher tax Earnings growth is attributed to a fine 10 per cent rates approved by voters and additional plant in gain in total revenue. Our 1969 revenues increased service, including the new Bay Shore Station generat-about $8 million to more than $88 million. The con-ing unit, in addition, the Ohio legislature enacted an tlnued growth in total revenues reflects favorable increase in the state excise tax cn utility gross reve-sales growth in all classifications of our own custom-nues. The tax rate was increased from 3 to 3.5 per ers, and substantial short-term power sales to other cent in August, for 1969, and will be 4 per cent in1970.
electric utilities. Revenues from the sale of energy Federal income taxes were down 3 per cent. This to other utilities in 1969 totaled about $4.3 million.
decrease was due in part to the full-year effect of Revenue from industrial customers increased over accelerated tax depreciation on the new generating 9 per cent to $30.7 million. This was due primarily to unit. The 10 per cent tax surcharge dropped slightly increased production by Northwestern Ohio indus-from the above-normal 1968 level because of the tim-tries and further expansion and development of the ing of when property tax expenses are claimed on our area's industrial complex.
Federalincome tax return.
A revenue gain of 10 per cent to more than $14.4 The income from interest during construction de-million was recoraed in our commercial classifica-creased $380.000 from the high 1SS8 income, accruing tion, while residential revenues were up 8 per cent to during final stages of construction of a major new about $27.7 million. Gains in both classifications re-generating unit in that year. Continuing cash de-flect increased customer usage and more customers, mands of our other construction programs used up Significant increases in coal prices and freight the temporary cash investments of 1968 and necessi-rates, maintenance, labor costs and general taxes tated short-term borrowings in 1969.
were factors in an increase of approximately 10 per Efforts to keep the financial community informed cent, or $6 million, in tc'al operating expenses, of your Company's progress and poten4al continued Maintenance costs were up 24 per cent, slightly during the past year. Presentations by Company of-more than $1 million. A large part of the ;ncrease was ficers were made before financial groups in San the cost of repairing facilities damaged by a severe Francisco, Los Angeles and Toledo.
storm in July. Total storm damage amounted to $750,-
000, of which the net amount chargeable to 1969 earn-ings as maintenance was equivalent to about four cents per share after Federal income taxes. Another Regulatinspection and factor was the first major inspection and maintenance maintenance of generating.
of our newest and largest generating unit, a normal equipment, far right, procedure following the initial year of operation.
contribute to more efficient Increased coal and freight costs accounted for a operations and help avoid 13 per cent fuel expense rise. Fuel escalation provi-emergency shutdowns.
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A New Decade-Our Challenges and Directions The next decade will bring the realization of many of sharing of very large generating units by two or more the plans and programs started in the 1960's by us companies to benefit from economies of scale result-and regional planning groups of electric utility com-ing from the higher overall efficiencies provided by panies to help assure an abundant and reliable supply such generating units. Toledo Edison is one of five of bulk power and to help contain the cost associated electric companies taking part in such a power pool-with providing this vrvice.
ing arrangement in Northern Ohio and Western Penn-Bulk power interconnections have long been con-sylvania.The five companies are known as the CAPCO sidered an essential part of the successful operation group and besides Toledo Edison include The Cleve-of the nation's electric utility systems. Toledo Edison land Electric illuminating Company, Duquesne Light has been interconnected with other electric compa-Company, Ohio Edison Company and Pennsylvania nies since 1929, and has been involved in negotia-Power Company.
tions and programs with other electric utilities to The first generating unit to help meet the growing improve reliability through stronger bulk power inter-demand for electric energy in the 14,000-square-mile connections over the years.
area served by the CAPCO companies is scheduled Nevertheless, following the northeast power inter-for completicn in 1971, Fiva other units, including one ruption of 1965, which did not include our system, the at our Davis-Besse Nuclear Power Station, have also nation's electric utilities re-examined both their own been announced by CAPCO and are scheduled for systems and their operating relationships with other completion by the companies at intervals through utilities. The result, reflected in current facility con-1976. Of the six units which have been announced, struction and planning, is a more unified industry our Davis-Besse and one other unit outside our sys-approach toward fulfilling the nation's energy needs.
tem will be nuclear fueled generating facilities.
Your Company was included in the first inter-utility The six CAPCO units willincrease the present pact that sought, as its single objective, to further in-combined generating capacity of the member com-crease reliability of bulk power supply in an area panies by 4.600,000 kilowatts or about 50 per cent.
which now covers 200,000 square miles. This East In April,1968, we announced that your Company Central Area Reliability group (ECAR), formed in 1967, would participate in a feasibility study, along with incit: des 26 member companies in a nine-state area.
seven other utilities in Ohio, Western Pennsylvania System planning and operation of member compa-and Northern Kentucky, of forming a holding com-nies are being closely coordinated through ECAR to pany. The motivating factor in making this study was further augment bulk power reliability.
to explore the possibilities of the maximum econo-Related to this objective, Toledo Edison and four mies which might be realized and which would accrue other ECAR member companies are nearing comple-to the benefit of both customers and shareowners.
tion of a 268-mile extra-high-voltage transmission The possibility of creating thi:, eight-company inte-loop which, when completed in 1970, will provide ad-grated system is still under consideration, but no final ditional links between power systems in Michigan, determination has been reached as yet.We will keep lilinois, Indiana and Ohio. Construction of Toledo you informed from time to time as any significant de-Edison's podion of this 345,000-volt line is being com-velopments occur.
pleted and the southern section, connecting with a Even though no final determination of the holding neighboring Ohio utility, was energized in July. This company proposal has yet been made, the course for.
new intertie, the result of discussions which started the 70's has been established. More mutual coopera-in 1963, will connect our system with Michigan power tion between Toledo Edison and other electric sys-systems to the north, thus forming a stronger back-tems through improved regional planning, power,
bone of bulk power system reliability, pooling and stronger bulk power interconnections Closely related to bulk power interconnection of will become increasingly important and beneficial as systems to achieve reliability and economy is the we face the challenge of more growth aheaa.
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-n Sharing large generating facilities with other a
otilities is a means of economically meeting the fast-growing demand for electric energy.
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related to stronger interconnections aid in Regional planning and system coordination turther augmenting bulk power reliability be-tween power systems throughout the coun-try. Work nears completion lelt, on a Toledo Edison 345.000 volt substation. Below, a regional project to assure reliable bulk
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Growth -Our Greatest Challenge To a greater extent than ever before, the fast-growing other permits necessary to build and operate tne nu-demands by customers for electric energy within a clear plant. The AEC's main responsibility is with the few years provides your Company and the nation's safety of the nuclear plant, and we will comply with electric utility industry with a great and difficult chal-the Commission's strict safety requirements. Issue of lenge. But the unified industry approaca to common the construction permit by the AEC could take about problems, the application of newer long-range plan-a year from the time of application.
ning systems and the continuing development of Davis-Besse and the other five generating units new technologies and methods provide the means to presently being planned through CAPCO will help help us moet the future challenges related to expand-each member company realize substantial economies ing demands.
of scale to help offset the challenge of continually ris-Demand for electricity nationally has been dou.
ing costs. The OAPCO arrangement also involves ad-bling every ten years and at an even faster rate in our ditions to the bulk power transmission systems of the service area during the past several years. This trend members for transfers of the output of CAPCO units is expected to continue. New plants and major expan-and to mutually assist each other in providing a sions already planned by industries in Northwestern higher degree of service reliability.
Ohio are expected to add nearly $5 million per year to Under the CAPCO commitment, your Company will our industrial revenues when fully operational within be purchasing a portion of the generation output of the next few years. Not only will these industries the first three CAPCO units, starting in 1971 and con-require more power, but more electricity will also be tinuing into 1974. Then, when our Davis-Besse unit is needed by our commercial and residential customers completed, we will be selling a portion of our share as a result of this area's economic growth and de-of the plant's generating output to another CAPCO
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member until we can fully utilize our ownership share.
To help assure an adequate and reliable energy Participation in subsequent CAPCO units is on a joint supply, your Company plans to invest $250 million ownership basis.
during the first half of this decade, including more
" Edison Plaza" has been selected as the name of than $32 million for construction in 1970. By the end your Company's new 17-story, all-electric head-of the decade, expected power needs will require us quarters building, which will replace our present to more than double our present investment in our leased building. The facility will provide space for company facilities in Northwestern Ohio.
continuing growth, and its interior design will provide Foremost among our construction projects to help for greater employce efficiency and customer service meet future power requirements in car service area and convenience. The new facility will contain some and this region is the 872.000-kilowatt unit at Davis-rental space and will be a major asset to the redevel-Besse Nuclear Power Station. The facility is included opment of downtown Toledo. Construction began this in the present CAPCO group regional power pooling past summer, $10 million of its eventual cost will be l
arrangement and is to be owned jointly with the expended during 1970, and completion is scheduled Cleveland Electric illuminating Company. Total cost for 1971.
of the nuclear plant, scheduled to become operational The remaining part of our 1970 expenditures will in late 1974, is estimated to be $240 million. This in-go toward expanding and improving your Company's cludes about $25 million for initial fuel requirements.
facilities for the production, transmission and distri-Toledo Edison will build and operate the plant and bution of electric power as well as for stearn heating, finance 52% per cent of the facility. As our share, we street lighting, our natural gas systems in Defiance will spend $8.4 million toward its ccnstruction in 1970, and Delta. Ohio, and other general facilities.
and a total of about S132 million by late 1974, includ-The quarter of a billion dollar expenditure for the ing certain wholly-owned transmission facilities.
first half of the 1970's represents the largest five-year Commitments were made to manufacturers of the expenditure in Toledo Edison's history, more thart Davis-Besse plant's nuclear and generating compon-doubling the previous record five-year spending of ents in 1968 by letters of intent. Although these com-
$115 million reached during tne 1965-1969 period.
ponents are not due to be delivered until 1972 and About 35 per cent of the funds to finar ce our 1970,
1973, it was necessary to make the ccmmitments so 74 construction programs will be obtained from inter-that their production would be scheduled.
nal sources. Outside financing during 1970 will most s
in August the Company submitted its application to likely be in the form of short-term bank loans and the Atomic Energy Commission for a construction and the issuance of unsecured promissory notes (com-8
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mercial paper) sold nationally through an investment banking firm. However, due to the rapid changes which are occurring in the financial markets, the ex-act timing and type of financing are subject to con-stant review.
in Capacity and Sales The increase in energy requirements and the com-plexities of today's business make major planning decisions more difficult and challenging. Since con-ventional planning methods are becoming burden-t200
'Generanng capacq some and expensive, we cannot tctally rely upon Total Peak load these to accurately and completely guide us in the years ahead.
short-Temi sa:es To provide the tools for accurate long-range plan-b ning decisions, your Company is developing a mod-a ern computerized management information system, 15 yf 1
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basic " financial model" was completed in December llE Esson system sales to provide needed information upon which we can base more accurate decisions that will establish our long-range financial course.
A more efficient customer information system is 200 another part of the program. It is expected to be oper-ational in 1970 and will further improve service to our
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,,5,,0 61.e2 63 64 6s 66 67 '68 69 and efficient answering of customer inquiries and re-quests. Reccrd data on each of our more than 200,000 customers will be electronically stored in our com-puter, and instantaneously pictured on TV screens Dr. walter C. Nodeaa, Toledo Edison nuclear engineer, whenever needed for reference by our customer ser-inspects a mocal of the nuclear reactor and steam yl supply system to be installed in the Davis-Besse plant.
Research and development of new technologies and methods continue to be critically important. To-d q
ledo Edison has for many years participated in and g
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trade association of the investor-owned electric util-d, Lj ity industry. Current major research and development 1
efforts are centered upon solutions to environmental f
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through the Institute, Among our greatest challenges ahead is indeed that of more growth. But we believe that progress 1
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new approaches, new technologies and impreved j
methods, we expect to produce some of our greatest achievements.
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Profitable Growth-Through Creative Marketing Energy sales during 1969 showed excellent gains, costs per kilowatt-hour enable us to increase profits compared to the exceptionally good sales experi-and permit more promotional rate decreases.
enced in 1968. Total sales increased about 600 mil-In recent years, we have made four promotional lion kilowatt-hours, or 12 per cent, to more than 5.5 rate reductions in our residential and commercial billion kilowatt-hours. More significant, however, is rate classifications. Each has put us in a better com-the fact that your Company established an all-time petitive position through increased commercial and high system load factor of approximately 69 per cent residential sales of electric space heating, water heat-during the year, reflecting profitable growth through ing, cooking and air conditioning. We have been efficient operations. This load factor, among the high-gaining in our share of the energy market in these est in the region, means that we are making fuller usa areas as a result of our strong promotional efforts,in of our facilities throughout the year, with consequent spite of intensive efforts by our competition.
better return on our investment.
The effectiveness of our promotional approach is Various specific factors contributed to such profit-most evident in the space heating category. Of the able sales growth, and we have emphasized these in apartment units being constructed in Toledo, about recent years. We have the advantage of serving a 42 per cent are to be electrically heated. We expect growing and diverse industrial region. Because of the to put electric space heating into more than 40 per around-the-clock production schedules of many of cent of all new dwelling units to be built in 1970.
our large industrial customers. we are provided with Rural energy sales programs are channeled toward an excellent type of stable, base load. New plant ad-improving the total economic development of this ditions, due in part to our area development efforts, area's agricultural industry, and our involvement in and major expansions by ind'ustries in our service this field has helped Northwestern Ohio agriculture area continue. As we have seen in recent years, these develop into a $180 million annual business.
indirectly stimulate greater commercial and residen-Your Company's marketing approach is directed tial sales. At the same time, we serve one of the most toward building and developing the total economy of prosperous agricultural areas in the Midwest, and Northwestern Ohio yet, at the same time, providing a rural sales continued to increase in 1969.
good return on our investment. Our marketing pro-With the 1968 addition of a new generating unit, we grams are strong enough to meet competitive chal-have also had more than enough reserve capacity, al-lenges and flexible enough to ailow us to develop new lowing us to sell power to other utilities on a short-energy uses and to improve sales in existing markets.
term basis. About one-third of our 1969 sales increase it is a responsible approach to help assure continued is the result of sales to other utilities, and the remain-profitable growth.
der to sales increases to Toledo Edison customers.
These and other favorable factors only partially This $5.6 mitfion a11-electric Community and Technical CoIIege of the University of Toledo was completed in explam. the reason for our consistently profitable 1969. The modern six-building complex is a signoticant growth in energy sales. Northwestern Ohio's inherent accition to this area's educational institutions.
capacity for development alone does not guarantee profitable growth. This fact underlies Tolede Edison's constant and aggressive marketing effort.
Your Company plans and implements its marketing programs to establish and maintain a balanced sea-sonal load and, thereby, increase its system load fac-
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The more successful we are in achieving this high l
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Properly applied promotional rate decreases which fW benefit both customers and shareowners have aided our efforts toward a balanced load growth. Added sales volume from lower rates and consequent lower
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l"'1 Ten Largest Industrial Customers Per Cent i
industrial Diversity or retai I
Industrial re,
P, Sales Company Nature of Toledo Area Facilities -
PETROLEUM REFINING 24 %
TX[nerican Motors...Iutomotive Plants
~~ j METAL CASTING, FORMING 19
. Brush Beryllium..Berylli[dm Products Plant AND FABRICATING n.s n.
Dana, ?.'....f.... General Headquarters Offices FLAT GLASS, GLASSWARE 13
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AND f NAuto Equipment Plant goDU N
' ;gDevelopment & Training Chiltern,i ir r(. e4 )
MOTOR VEHICLE, COMPONENT, 11
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General Motorsf...Foun= dry
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PART AND ACCESSORY Transmission Plant
'7[h MANUFACTURING S-Y m, n -
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- a p Johns'-MansviRel,... Fiber Glass Plants 4.Q DIVERSE OTHER 22 Libbej-Owens# kord..Gendr'bl Headquarters Officesyja p,[,,, d cods and gra M UFA
.gr g Flaj.' Glass Plants d!*nrjiq electric appliances, scales.
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- "t-Natio. ;nal Lea'd...,..Diecastings Plants pg! - 2.,l%g#
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machine tools and fixtures,
,i 7n 1 Owe'ns-lllinois...}... Gen _eral Headquarter (Offices pjl spark plugs, and housing T '* d
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'y c mponents ResearcW& Development Centers VARIOUS NON-MANUFACTURING, 11 T'>
inciuding research centers, i Stahdard dil....... Refinery-seaport docks, railroads, S u n d il.........
. Refinery pipelines and service industries
. -Q TotalIndustrialSales 100 %
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The Environment-A New Dimension in Our Bud Public concern for our environment has increased in versity researchers, as well as by state and Federal recent yests, and the electric utility industry shares agencies, as the plant is constructed and after it goes in this concern.
Into operation.
This interest and concern for our environment is A mutually beneficial exchange of land between shared by Toledo Edison and is reflected in the ac-
. Toledo Edison and the U.S. Bureau of Sport Fisheries tions which have been and are being taken by your and Wildlife provided a suitable site for our plant and Company toward eliminating or reducing the prob-added more than 400 acres to the marshland water-lems associated with our facilities and their effect fowl habitat under Bureau management. A marsh pur-upon our natural environment.
chased by the Company was exchanged for one Our interest and efforts in protecting the environ-which was owned by the Bureau and which contained ment and resources of Northwestern Ohio is based a better plant site. The latter, except for the relatively on the unique service quality of our business. We are small amount of land needed for the plant, will con-totally dependent on the area we serve. Both the tinue under Bureau management as a waterfowl ref-economic and environmental welfare of this area have uge. Bureau officials cited this as an outstanding a bearing on your Company's growth and prosperity.
example of co-operation between govemment and Your management's position, therefore, in refer-industry to improve the environment, ence to all Company operations has been that Toledo The recent challenge associated with nuclear Edison will do whatever is feasible to avoid adverse power is certainly not the only environmental prob-effects to our natural environment.
Iem which continues to receive attention by your A part of our involvement is related to the use of Company and our industry, Progress is being made nuclear power as a means of meeting the fast-grow-in the areas of air pollution and facility esthetics.
Ing demands for electrical power. Despite such in recent years, as coal-fired generating capacity obvious advantages as the elimination of smoke, dust was added, your Company installed the most modern and coal and ash storage facilities offered by nuclear air pollution control equipment available.
power, questions have been raised regarding other A $3.3 million air improvement project is currently possible environmental effects. Unfortunately, some underway involving older equipment at our Acme Sta-of the public concern is based on misinformation, tion involved are the replacement of four old coal premature conclusions, lack of understanding, and in stoker boilers with oil-fired units and the installation some cases, conflicting political or personalinterests.
of electrostatic dust collectors on three of the older To assure that the Davis-Besse Nuclear Power Sta-coal-fired boilers not presently so equipped.
tion is operated in a manner both safe and compatible When this project is completed in 1970, all of our with the environment, extensive research by the Com-boilers at our electric generating plants will have pany anc by scientists of the University of Michigan modern electrostatic dust collecting equipment to and Johns Hopkins University continued through remove virtually all solid matter from stack dis-1969. These research programs relate not only to charges, and your Company will have made another Atomic Energy Commission nuclear safety require-significant contribution toward a better environment.
ments, mentioned in a preceding section of this re-Our total investment in all air quality facilities will be port, but also to state requirements for water quality.
nearly $7 million.
In December a report was filed by your Company in addition to installing the most modern dust con-with the Ohio Department of Health proposing trol equipment, we are using lower sulphur content conditions of water use at the Davis-Besse plant. This coal and oil in our boilers to reduce the discharge report states the Company's intent to insure that there of sulphur dioxide. We started receiving these coal will be no damage to Lake Erie ecology due to warm shipments in 1967.
water from the plant's cooling system and summar-Efforts to improve the esthetic appearance of our izes the extensive research upon which the system's facilities is meeting with success through our en-design is based.
couragement of the use of underground lines in new With the design recommended, the zone in which subdivisions. Your Company is also taking advantage the lake temperature increase would be five degrees of new materials and techniques to give overhead or more would be confined to 88.4 surface acres, or lines a clean and uncluttered appearance.
about 14 millionths of Lake Erie's total surface. The The actions being taken by Toledo Edison to pro '
warmed water beyond the initial mixing zone would tect the environment are desirable and will constitute j
rise to the surface, giving up its heat to the air, an increasingly important dimension of public service Ecological studies of the take will continue by uni-during the next decade.
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The welfare of
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ss feasible to avoid
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adverse effects to our I
environment, while l
economically meeting energy demands.
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j A U.S. Bureau of Sport Fisherres and Wildlife official 1
surveys a portion of the additional waterfowl habitat W
now under Bureau management along the shore of m,]lllI j
Lake Erie near the site of our nuclear power plant.
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med Managing - For Profits
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ma The profitable operation and related growth of any uals at five organization levels prepare and justify business ultimately depends upon the ability and annual budgets and long-range forecasts. Managers judgment of the individuals responsible for directing are required to explain monthly budget variances and and managing the organization, and the development to accurately forecast and justify any variances ex-and creative interaction of human resources within pected for the remainder of that year. Through the" the company, forward projections, the Company's annual profit goal Your Directors are local business and professional is kept strongly in mind.
men who have displayed extensiva administrative Obtaining the most qualified college-trained per.
ability in their respective fields. These men have ac-sonnel continues to be a highly competitive and tively participcted in civic and community affairs and increasingly challenging area. Strong emphasis, represent a cross section of our business and indus-therefore,is placed on first selecting, then developing trial community.
management personnel to assure a continuing supply Your Officers have the knowledge and creative of highly competent, creative people for top level ability, gained from years of experience in the elec-management oositions.
fric utility industry, required to successfully manage Several successful techniques are being utilized your Company. Together, your Directors and Officers to train personnel for positions of more responsibility.
possess the background to meet the challenges of the Among these are a formal management development new decade, program, designed specifically for Toledo Edison, for Elected to your Company's Board of Directors in selected employees. The Company also reimburses 1969 were Marvin S. Kobacker, vice president and the major share of tuition costs for all employees suc-Board member of Federal's, Inc., treasurer of the cessfully completing work-related academic courses.
Epko Shoe Company, and Chairman of the Board of Also, selected emp!oyees attend and participate in Tiedtke's Division of Federal's, and Dr. William S.
work-related seminars and conferences, including Carlson, president of The University of Toledo, those sponsored by associations, organizations, sup-Mr. Kobacker was elected in May to succeed Jules pliers and universities, in addition, Toledo Edison D. Lippmann, who resigned for health reasons after provides summer employment for selected college serving as a dedicated Board member since 1950.
students with the expec:atior, that they may become As head of one of Toledo's major department stores, permanent employees upon graduation.
Mr. Kobacker has been an active leader in Toledo As a business dependent upon the continuing wel-community and business affairs for many years, fare of a specific service area, your Company also Dr. Carlson was elected in December, succeeding urges employees to become involved in cultural, edu-John D. Biggers who faithfully served on the Com-cational, charitable, civic and other community ser-pany's Board for 17 years and who was elected di-vice activities in Northwestern Ohio. Not only does rector ementus. Dr. Carlson served as president of such voluntary participation benefit the community, the University of Delaware, the Ur iversity of Vermont but those who do take an active part help develop and State Agricultural College, and the State Univer-themselves and thus indirectly enhance their per-sity of New York before becoming president of the formance on the job.
University of Toledo in 1958.
The training and utilization of Toledo Edison's -
A part of the growth and success of Toledo Edison human resources are as lmportant to the continued can also be attributed to effective cost control and grcwth of your Company as the careful dovelopment forecasting of future needs. This has been achieved of our natural resources is to the growth and prog,
by a relatively small, closely-knit management group ress of our nation. The creative development of man-which, at the same time, emphasizes the delegation agement personnel througn a forward-looking, profit-of responsibility, in the Company's work force of motivated approach will remain an essential part of 1,600 employees, more than 60 management individ-your Company's future operation and growth.
14
BOARD OF DIRECTORS I'
{
WILLIAM S. CARLSON i
President. The University of Toledo 1
SAMUEL G. CARSON President. The Toledo Trust Company JCHN K. DAVIS' President
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T CH ARLES E. FLAHIE*
I" Executive Vice President FRED E. FULLER Senior Partner, Fuller, Seney, Henry & Hodge
'/lRGIL A. GLADIEUX*
Charles E. Flahie f aident, Gladieux Food Services,Inc.
John K. Davis John P. Williamson WILLIAM M. HANKINS, JR.*
President. The Kiemle-Hankins Company MARVIN S. KCB/sCKER s
Chairman of the Board Tiedtke's t..
J. PRESTON LEVIS
- 9 Chairman of the Executive Committee, y
l Owens-Illinois. Inc.
W. ROYSE MORAN
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N Vice President, Administrative Services
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HENRY A. PAGE. JR.
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President, The Page Dairy Company 3
WILLIAM R. POOLE N
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u Vice President, Markete 'g r
p7,g g, pugg,7 GLENN J. SAMPSON Vice President, Power W. Royse Moran WILLARD 1. WEBB. til President. The Ohio Citizens Trust Company JOHN P.WILLIAMSON f
Glenn J. Sampson e!,?
Senict Vice President
- Members of Executive Committee 7
JOHN D. BIGGERS M'
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Director Emeritus OFFICERS AND EXECUTIVE STAFF j
JOHN K. DAVIS President CHARLES E. FLAHIE Executive Vice President JOHN P.WILLIAMSON Senior Vice President William S. Carlson Virgil A. G! adieux JOHN H. BARKER Vice President, Public Relations y;;t;,m 9, pong, FR ANK W. KEITH Vice President, Personnel THADDEUS A. KOSTANSKI t
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Controller THOMAS J. KOZAK
-yh Q'W T Vice President. Electrical r
W. ROYSE MORAN
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Vice President, Administrative Services j T t
DON ALD G. NICHOLSON 4#
4 Secretary and Treasurer
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g W!LLIAM R. POOLE Vice President, Marketing J. Preston Levis GLENN J. SAMPSON l
Vice President, Power Samuel G. Carson p
JOHN B. CLCER
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Manager, Southern District l
HOWARD B. FOX t
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Assistant to the President JAMES S. GRANT f
l Manager, Western District b Ql'
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i WENDELL A. JOHNSON j
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e Manager, Eastern District N.
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WILLIAM H. SCHWALBERT N'
Assistant to the President CLAUDE L LEWIS f.
Assistant Secretary and Assistant Treasurer
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DONALD H. SAUNDERS e
d Assistant Controller Willard I. Webb. Ill Kca i: r William M. Hankins.Jr.
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FOR THE RECORD
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EXECUTIVE OFFICES
,y 420 Madison Avenue Toledo, Ohio 43001 Phone (419) 242 5731 STOCK TRANSFER AGENTS THE TOLEDO TRUST COMPANY Toledo, Ohio.G603 m.
.n r MORGAN GUAHANTY TRUST COMPAhY l
CF NEW YOR <, Now York, N.Y,10015 STOCK REGISTRARS THE OHIO CITIZENS TRUST COMPANY Toledo, Ohio 43603 MANUFACTUREPS HANOVER TRUST COMPANY, New York, N.Y.10022 DIVIDEND DISBURSING AGENT e
a l
l THE TOLEDO TRUST COMPANY Toledo, Ohio 43603 MORTGAGE TRUSTEE a
THE CHASE MANHATTAN BANK (NA)
New York, N.Y.10015 AUDITORS ARTHUR ANDERSEN & CO.
1717 East Ninth Street Cleveland, Ohio 44114 GENERAL COUNSEL FULLER, SENEY, HENRY & HODGE Owens-Illinois Building 405 Madison Avenue Toledo, Ohio 43604 STOCK LISTING COMMON Listed NEW YORK STOCK EXCHANGE MIDWEST STOCK EXCHANGE AUDITORS' REPORT AMSTERDAM STOCK EXCHANGE Unlisted Trading Privileges a
ad had d Meh C C NNAT STOCK EXCHANGE DETROIT STOCK EXCHANGE We have examined the balance sheet and statement of capitaliza-tion of The Toledo Edison Company (an Ohio corporation) as of Un/ s ed T rivileges AMERICAN STOCK EXCHANGE December 31,1969, and the related statements of results of opera-tions, taxes, earnings reinvested, and source and application of funds for the year then ended. Our examination was rrgade in accord.
This report, including the financial ance with generally accepted auditing standards, and accordingly statements, is submitted for the general included such tests of the accounting records and such other audit-information of The Toledo Edison ing procedures as we considered necessary in the circumstances.
Company's shareowners, it is not intended We have previously examined and reported on the financial state-to be used in connection with any sale or ments for the preceding year.
purchase of any securities.
la our opinion, the accompanying financial statements referred to above present fairly the financial position of The Toledo Edison Annual Meeting Company as of December 31,1969, and the results of its operations The annual meeting of The Toledo Edison and the source and application of funds for the year then ended, Company wil'. be held at 10 A.M.,(E.S.T.)
in conformity with generally accepted accounting principles ap on Tuesday, April 21,1970, in the Company plied on a basis consistent with that cf the preceding year.
offices,420 Madison Avenue, Toledo, Ohio.
Formal notice of the meeting will be sent to Cleveland, Ohio, shareewners with tne proxy statement.
January 30,1970 16
l RESULTS OF OPERATIONS l
for the years ended December 31 1969 1968 facfease Operating Revenues Electrio 85 884 78 083 10 i
Gas 1 314 1 201 9
i Steam heating 877 806 9
Total operating revenues 88 075 80 090 10 Operating Expenses Taxes (Note 5; Detail on page 20) 18 912 18 001 5
Fuel used in power plants 14 370 12 693 13 Purchased power 5 983 4 395 36 Operation (Note 3) 14545 13 987 4
Maintenance 5 390 4 356 24 Depreciation provisions (Note 4) 9 838 9 614 2
Total operating expenses 69 038 63 046 10 Operating Income 19 037 17 044 12 Interest and Other Interest on long-term debt 4 943 4 957 Interest on short-term notes 567 125 354 investment income and other-net
( 231)
( 421)
( 45)
Interest during construction
( 701)
( 1 081)
( 35)
Total interest and other 4 578 3 580 28 Net Income 14 459 13 464 7
Preferred stock dividends 1 333 1 333 Earnings On Common Stock 13 126 12 131 8
Earnings Per Common Share s2.54
$2.35 8
The notes on page 18 are an integral part of this staternent.
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New andimproved computerized systems, incorporating the many complex variables necessary for more effective long-range planning decisions, are being developed and utilized by the Company.
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Discussing the system are
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Donald G. Nicholson, y
secretary and treasurer, l
T. A. Kostanski, controller, l
and Clarence Eggert, corporate planning engineer.
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NOTES TO FINANCIAL STATEMENTS oecemberaf.19e9 1 Federal Power Commission Jurisdiction straight-line basis. The rates were reduced January Upon completion of the Michigan interconnection in 1,1969, based on updated age-life studies. Deprecia-l 1970, referred to on Page 6, the Company will be-tion provisions for 1969 were $665,000 lower under come subject to regulation under the Federal Power the new rates than they would have been under the formenates.
l Act by the Federal Power Commission (FPC) as to l
accounting, interstate transmission of power, sales at 5 Federal income Taxes wholesale for resale, and certain other matters. The Company will continue to be subject to regulation by Rates used in computing depreciation for Federal The Public Utilities Commission of Ohio (PUCO) and income tax purposes are based upon standard tax local authorities, including regulation cf retail rates,
,' Guideline 1.ives" and averaged 3.5% for 1969 and which cover the bulk of the Company s sales. Fed-1968. The rates are applied on a straight-line basis to eral regulation will include a requirement that the property constructed prior to January 1,1954, and on Company's electric plant accounts be stated at " orig-a double declining balance method of accelerated tax Inal cost" (defined by the FPC as the cost of property depreciation for property constructed after that date.
j to the person first devoting it to pubile service). The The use of acce!erated tax depreciation lessened the plant accounts are now stated at cost, but not neces-rovision for Federal income taxes by $1,605,000 in 1969 and $1,382,000 in 1968.
sarily at " original cost in some instances. In prior years, more than $14 million was eliminated from plant Based upon Ohio court and commission decisions, l
accounts with the approval of the PUCO. Ohio rate the Company is of the opinion that taxes deferred re-regulation is based upon the " reproduction cost" of sulting from the use of accelerated tax depreciation will be recoverable out of future revenues. Accord-property. The PUCO does not require a determina-ingly, pursuant to an order of The Public Utilities tion of " original cost' and no complete ' original cost" study has been made by the Company. No pre-Commission of Ohio, the Company stopped providing l
diction can be made at this time as to the effect, or for such deferred taxes in 1962 (i.e., adopted flow-l timing, of a restatement of all electric properties on e
l an " original cost" basis. The FPC also may require retroactive by transferring to Earnings Reinvested the
~
l that the $3,945.000 mentioned in Note 5 be restored
$3,945.000 of reserve for these deferred taxes accum-from Earnings Reinvested to a reserve account.
ulated from 1954 through 1961. From January 1,1962 through December 31, 1969, the use of accelerated 2 Ohio Valley Electric Corporation tax depreciation lessened the provision for Federal nc axes aWeam M d M S M i
The Company owns 4% of the common stock of Ohio l
Valley Electric Corporation (OVEC) which has a long-6 Power Pooling
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term contract to supply power to the Atomic Energy The Company has reached an understanding with Commission (AEC). The proceeds from the sales of four other utilities (CAPCO Group) involving substan-power are designed to be sufficient for OVEC to earn tial future commitments for joint participation in addi-l a return on its common stock after meeting all of its tional power generation and transmission facilities.
l costs, including (in lieu of depreciation) amortization Plans include construction of the Davis-Besse Nuclear l
of debt capital. At December 31,1969, debt capital of Power Station, scheduled for completion in 1974. The l
approximately $188 million remained to be amortized Company is building the 872,000-kilowatt plant and it I
by OVEC over the period ending in 1981. The Com-will be jointly owned with The Cleveland Electric illu-pany is entitled to receive and obligated to pay for minating Company. The facility now is estimated to the right to receive 4% of any power not required cost about $240 million, including about $25 million for l
by AEC.
the initial nuclear fuel requirements. The Company's l
3 Retirement income Plan 52.5% ownership will sequire a total investment on its part of about $132 million, including certain wholly-The Company has a retirement income plan which owned transmission facilities. See Page 6 for detail.
l covers all employee groups. Net plan cost. after em-ployee contributions, was $1,011,000 for 1969. The 7 Proposed Holding Company Company's policy is to fund annual costs as accrued The Company and seven other utilities in Ohio, West-each year, including amortization of unfunded prior ern Pennsylvania and Northern Kentucky are partici-
~
service cost over a 20-year period. The estimated net pating in a study toward the possibility of forming a unfunded actuarial prior service cost under the plan holding company system. See Page 6 for further aggregated $5,704,000 as of December 31,1969.
detail.
4 Depreciation 8 References to Report s
Depreciation rates used in computing depreciation Reference is also made to the following subjects in expense shown in the financial statements averaged the report; construction program ($250 million in 3.2% in 1969 and 3.4% in 1968 and are applied on a 1970-1974), Page 8, and financing plan, Page 8.
= =.m.n m
$a BALANCE SHEET Decenbers7 4_ j W. R ASSETS 1969 1968 Thousands of Dollars Utility Plant in service, at cost (Note 1) 327 998 318 239 Less accumulated provision for depreciation 86 301 81 203 241 697 237 036 Construction work in progress 15 491 11 524 257 188 248 560 Current Assets Cash 3 257 3 089 Accounts receivable 9 475 9 135 Fuel for use in power plants 2 860 2 649 Materials, supplies and other current assets 8 361 7 538 23 953 22 411 Investments and Other, at cost Ohio Valley Electric Corporation (Note 2) 702 718 Area development and other 1 192 790 1 894 1 508 Total Assets 283 035 272 479 LIABILITIES Capitalization (Detailon page 21)
Common stock equity 86 680 81 965 Cumulative preferred stock 31 000 31 000 First mortgage bonds 120 781 121 089 238 461 234 054 Short-Term Notes Payable issued to banks 4 000 4 000 issued to others (commercial paper) 7 100 1 500 11 100 5 500 Current Liabilities (excluding notes payebte)
Accounts payable 3 185 4 781 Accrued taxes 14 869 13 051 Other current liabilities 5 667 5 387 23 721 23 219 Accumulated Provisions Deferred Federal income taxes-accelerated amortization 5 409 5 731 Federal investmcat tax credits 3 403 3 294 Other 941 681 9 753 9 706 Total Liabilities 283 035 272 479 The notes on page 18 are an integral part of this statement.
19
^
SOURCE AND APPLICATION OF FUNDS for the years ended December 31 1969 1968 Thousands of Dollars Source of Funds Earnings on common stock 13 126 12131 income charges not requiring current funds:
Depreciation provisions 9 838 9 614 investment tax credits (net) 287 1 394 Short-term borrowings 5 600 5 500 Sale of temporary investments 10 702 28 851 39 341 Application of Funds Additions to utility plant 18 549 30 885 Dividends on common stock 8 411 7 792 Acquisition of mortgage bonds for sinking fund purposes 308 463 Payment of Federal income taxes deferred in prior years 322 322 Working capital changes and other 1 261
( 121) 28 851 39 341 TAXES for the years ended December 31 1969 1968 Thousands of Dollars FederalIncome Taxes (Note S)
Payable direct-income tax 9 452 8 388
-tax surcharge 996 1 238 Payable by application of investment tax credit 416 1 465 Total Federal income taxes payable 10 864 11 091 Amortijation, over applicable service lives, of accumulated provisions:
Investment tax credits
( 129)
(
71)
Deferred taxes-accelerated amortization
( 322)
( 322)
Total Federal income tax expense 10 413 10 698 General Taxes Local property 5 887 5 196 State excise on gross revenues 2 547 2 059 Other 65 48 Total general tax expense 8 499 7 303 TOTAL TAXES 18 912 18 001 20 The notes on page 18 are an integral part of these statements.
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+
CAPITA LIZATION... and per cent of totai capita 11zation December 31 1969 1968 hou and of DoHars Common Stock Equity Common stock, $5 par, authorized 7,500,000 shares, outstanding 5,160,125 shares each year 25 801 25 801 Premium on capital stock 10 076 10 076 Earnings reinvested (Notes 1,5 and a) 50 803 46 088 86 680 36 %
81 965 35 %
Cumuiative Preferred Stock, $100 par, authorized 500,000 shares Redemption price Series outstanding (per share) 4% %,160,'?00 shares $104.62%
16 000 16 000 4.56%, 50,000 shares 101.00 5 000 5 000 4.25%,100,000 shares 102.00 10 000 10 000 31 000 13 ?'.
31 000 13Y.
First Mortgage Bonds, excluding bonds acquired and held for sinking fund purposes (Note b)
Series outstanding 2% %, due 1977 27 795 28 103 3% %, due 1978 4 336 4 336 3%,
due 1979 2 150 2 150 2% %, due 1980 7 500 7 500 3% %, due 1984 14 000 14 000 3% %, due 1986 15 000 15 000 4%,
due 1988 15 000 15 000 6% %, due 1997 35 000 35 000 120 781 51 %
121 089 52 %
Total Capitalization 238 461 100 %
234 054 100 %
NOTES:
(a) Under provisions of the articles of incorporation, $14,718,000 of the $50,803,000 is not available for cash dividends on common stock.
(b) Current annual interest requirement on bonds is $4,937,000.
EARNINGS REINVESTED for the years ended December 31 1969 1968 Thousands of Dollars BALANCE, Beginning of year 48 088 41 749 Earnings on common stock 13 126 12 131 59 214 53 880 Common stock dividends declared, $1.63 per share in 1969 and $1.51 in 1968 8 411 7 792 BALANCE, End of year (Notes 1,5 and a) 50 803 46 0:3 The notes on page 18 are an integral part of these statements.
21
STATISTICAL AND FINANCIAL REVIEW
- SALES.. millions ot kilowatt hours CUSTOMERS..endotyear USAGE..residentia!
Annual Price Annual Industnal, KWH Per RevenueF Resi-Com-Ut;Iities, Total Per KWH Custome' Resi.
Com.
other Total e
Year dential mercial Industrial other Utilities Electrrc Increase dentral mercial S other Electric Customer (C nts)
(Dollars 1969 1 181 621 2 793 469 490 5 554 12 200 058 19 775 4 218 224 051 5 967 2.34 139.74 l 1968 1 083 530 2 572 457 319 4 961 19 195 737 19 570 4 191 219 498 5 596 2.36 132.23 1967 993 477 2 266 417 5
4 158 7
191 881 19 178 4 101 215 160 5207 2.40 124.90 1966 937 447 2 125 380 2
3 891 12 189 704 18 892 4 081 212 677 4 977 2.43 120.84 1965 863 409 1 877 335 3 484 8
186 498 18 711 3 922 209 131 4 689 2.47 115.94' 1964 810 379 1 750 301 3 240 6
181 968 18 349 3 874 204 191 4 482 2.53 113.30 1963 765 354 1 638 290 3 047 6
179 422 18 073 3 846 201 341 4 298 2.55 109.71 1962 740 339 1 520 276 2 875 7
177 100 17752 3 822 198 A74 4 201 2.54 106.82 1961 718 326 1 393 254 2 691 175 826 17 701 3 735 197 262 4 107 2.42 99.19' 1960 690 314 1 437 237 2 678 4
174 383 17 837 3 580 195 800 3 984 2.36 94.14 1959 666 301 1 371 230 2 568 14 172 347 17 633 3 561 193 541 3 899 2.37 92.53 LOAD.. megawatts ENERGY.. millions of kilowatthours FUEL Net Toledo Edison System Fuel Cost Per Caca-Total Load Reserve Million btu britty Peak Peak Factor Factor Generated Purchased and KWH btu per Year (Yr. End)
Load Load
( *'e )
(*'e )
(Net)
Interchanged (Net)
Total (Mills)
(Cents)
KWH 1969 1 204 1 089 897 69 34 4 764 1 142 5 906 3.0 30.3 9 899'c 1968 1 256 1 060 860 66 46 4 387 895 5282 2.9 28.6 10 0' 1967 940 784 763 67 23 3 598 861 4 459 2.7 27.5 9 893 1966 925 779 716 67 29 3 999 215 4 214 2.8 27.9 9 932 1965 797 653 653 66 22 3 733 34 3 767 2.7 27.4 9 835 1964 780 593 593 67 32 3 440 43 3 483 2.6 27.1 9 704 1963 780 568 568 66 36 3 249 45 3 294 2.7 26.8 9 910 1962 644 522 522 68 23 3 057 50 3 107 2.8 27.3 10 299 1961 652 505 505 66 29 2 869 49 2 918 2.9 28.7 10 232 1960 652 501 501 66 30 2 841 59 2 900 3.1 29.3 10 455 1959 652 482 482 66 35 2 705 69 2 774 3.1 29.8 10 542 lNVESTMENT.. thousands at dollars CAPITALIZATl0N.. thousands atdottars Accumulated Plant in Provisions For Accumulated Annual Long Cumulative %
Common %
Service Deorecratuon Decreciation Construction Term of Preterred of Stock of Year (Yr. End)
I Yr. End)
As % ofi" ant Excenditures Debt Total Stock Total Equity Total 70tal 1969 327 998 86 301 26 18 549 120 781 51 31 000 13 86 680 36 238 461 1968 318 239 81 203 26 30 885 121 089 52 31 000 13 81 965 35 234 054 1967 269 882 73 443 27 36 505 121 552 53 31 000 13 77 626 34 230 178 1966 260 274 67 375 26 15 177 86 933 46 31 000 16 73 043 38 190 978 1965 249 382 61 889 25 13 586 87 222 47 31 000 16 68 572 37 186 794 1964 242 584 56 880 23 6 655 87 599 48 31 000 17 64 468 35 183 067 1963 239 914 51 986 22 11 192 88 121 49 31 000 17 60 609 34 179 730 1962 215 061 48 343 22 21 104 88 594 50 31 000 18 57 090 32 176 684
~
1961 210 709 43 818 21 8 925 88 689 50 31 000 18 56 308 32 175 99*
1960 206 113 38 731 19 6 051 89 420 51 31 000 18 53 430 31 173 8L,
1959 200 992 34 244 17 7 020 89 681 52 31 000 18 50 750 30 171 431
- Federalincome taxes deferred through use of accelerated depreciation are " flowed-through"into estnings (1959-61 restated.)
y
'1969 and 1968 reflect enore uss al olcer,IJss elticient generating unats for cost-plus power sales to neighbonng utilities.
f OPERATING REVENUES.. thousands at dotters and per cent at electric revenues Total Resi.
Com.
other Total steam ocerating dentral mercial Industrial %
other utilities Electric Gas Heating Revenues Increase Year 27 663 32 14 446 17 30 696 36 8 803 10 4 276 5
85 884 1 314 877 88 075 10 1969 25 588 33 12 705 16 28 482 36 8 219 11 3 089 4
78 083 1 201 806 80 090 14 1968 23 814 35 11 565 17 25 504 37 7 474 11 32 --
68 389 1 136 767 70 292 5
1967 22 751 35 11 026 17 24 199 38 6 889 10 18 -
64 883 1 069 818 66 770 8
1966 21 339 36 10 332 17 21 920 37 6 130 10 59 721 990 835 61 546 5
1965 20 469 36 10 354 18 20 516 36 5 770 10 57 109 912 787 58 808 6
1964 19 536 36 9 725 18 19 378 36 5 421 10 54 060 860 816 55 736 4
1963 18 827 36 9 338 18 18 419 36 5 188 10 51 772 810 853 53 435 7
1962 17 352 36 8 736 16 17599 38 4 819 10 48 566 770 824 50 160 3
1961 16 318 35 8 289 18 18 078 38 4 454 9
47 139 710 812 48 661 4
1960 15 819 35 8 010 18 17423 38 4 045 9
45 297 692 708 46 697 9
1959 OPER ATING EXPENSES.. thousands ol dollars and per cent ot totai revenues F1<teral Pur.
Total income General chased ocera-Mainte-Decre-ooerating Taxes Taxes Fuel Pcwer %
tion nance %
ciation %
Excenses %
Year 10 413 12 8 499 10 14 370 16 5 983 7
14 545 16 5 390 6 9 838 11 69 038 78 1969 698 13 7 303 9
12 693 16 4 395 6 13 987 18 4 356 5 9 614 12 63 046 79 1968
,,935 13 6 440 9
9 923 14 4 189 6 12 505 18 4 213 6 8 614 12 54 819 78 1967 9 301 14 6 224 9
11 173 17 932 2 12 165 18 3 774 6 8 280 12 51 849 78 1966 8 308 14 5 671 9
10 175 17 178 --
11 584 19 3 745 6 8 065 13 47 726 78 1965 8 056 14 5 737 10 9 205 16 266 -
11 167 19 3 656 6 7 578 13 45 665 78 1964 7 976 13 5 564 10 8 847 16 273 1 10 764 19 3 082 6 7 137 13 43 643 78 1963 7 775 15 4 926 9
8 762 16 286 --
10 024 19 3 559 7 6 659 13 41 991 79 1962 7171 14 4 618 9
8 681 17 284 1 9 553 19 3 268 7 5 903 12 39 478 79 1961 6 383 13 4 503 9
8 914 18 329 1 9 333 19 3 284 7 5 340 11 38 086 78 1960 6 166 13 4 066 9
8 650 19 358 1 9 359 19 3 194 7 4 842 10 36 335 78 1959 lNCOME.. thousands aldottars COMMON STOCK...dollarspershare Debt Construc.
Earnings Dividends ocer. Interest tson Preferred on increase Market Pnce Range Declared Ltung
& other Interest Net stock Common (Ten-Yr.
Shares share Book (Current income (Net)
(Credit)
Income Dividends Stock Avg. 8%) outstanding Earnings High Low Yr. End Value Rate S1.72)
Year 19 037 5 279 701 14 459 1 333 13 126 8
5 160 125 2.54 36 26 29 16.80 1.63 1969 17044 4 661 1 081 13 464 1 333 12 131 3
5160 125 2.35 38 30 35 15.88 1.51 1968 15 473 3 170 818 13 121 1 333 11 788 5
5160 125 2.28 42 29 30 15.04 1.42 1967 14 921 2 557 200 12 564 1 333 11 231 11 5160 125 2.18 41 29 40 14.16 1.31 1966 13 820 2 460 62 11 422 1 333 10 089 10 5160 125 1.96 41 32 39 13.29 1.16 1965 13 143 2 660 24 10 507 1 333 9174 10 5 160 125 1.78 35 29 33 12.49 1.03 1964 12 093 2 830 440 9 703 1 333 8 370 4
5 160 125 1.62 31 26 30 11.75
.94 1963 11 444 2 689 615 9 370 1 333 8 037 16 5160 125 1.56 27 20 26 11.06
.83 1962 tri 682 2 516 100 8 266 1 333 6 933 5
5 160 125 1.34 28 19 27 10.91
.725 1961
'S 2 677 42 7 940 1 333 6 607 3
5 160 125 1.28 20 15 19 10.35
.70 1960
(
10 362 2 868 231 7 775 1 333 6 442 2
5160 125 1.25 17 15 16 9.84
.70 1959 23
THE TOLEDO EDISON COMPANY BULK RATE U.S. POSTAGE 420 Madison Avenue. Toledo, Ohio 43601 PA;D Permit No. 2300 Toledo ONo I
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lf This report comes to you from North-Your management knows that this com-western Ohio where your Company pany can prosper only if the area we serve
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serves an area with a unique blend of prospers. This is why we not only pro-highly diversified industry and some of mote the sale of electric power, but also the nation's most productive farm land.
the orderly growth of Northwestern Ohio.
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The 2,500-square-mile area is situated in addition we try to be good citizens in
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I for the most part on the shores of Lake the communities we serve. As we say in Erie in the heart of the growing Great our advertising.. We Live Here, Too.
Lakes megalopolis. With Toledo Edison playing a major role, the emerging pat-tern in the area is one of controlled growth based on careful planning. In ad-dition to supplying the electric energy essential to this growth, your Company is involved in the planning and imple-mentation of many worthwhile activities in Northwestern Ohio. We're working on air purity, water quality, area beautifica-tion and many other environmental activities which contribute to the long range prosperity of the area we serve.
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