ML20002C903
| ML20002C903 | |
| Person / Time | |
|---|---|
| Site: | Big Rock Point File:Consumers Energy icon.png |
| Issue date: | 12/31/1961 |
| From: | CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.) |
| To: | |
| Shared Package | |
| ML20002C902 | List: |
| References | |
| NUDOCS 8101120350 | |
| Download: ML20002C903 (48) | |
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CONSUMERS POWER COMPANY Electric and natural gas service in diversified Outstate Michigan.
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he ug&yQ,y ~. ;;xL >c,.,r.y,};;:,.G y @liMWf %ci;pj ' %; z-2 Western Michigan Unisersity at Kalamazoo is one of 21 unisersities and degree-granting colieges in the Company's service area. It is a state university with close to 10,000 students.
A 55,000,000 expansion program now under way will provide four residence halls, with a total capacity of 1,100 students, and a dining hall.
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9 61 CONSUMERS POWER COMPANY A
212 West Michigan Avenue Jackson, Michigan CONTENTS Two-Year Comparison, 196!-1960 2
Financial Summary, 1961-1951 26-27 1961 Revenue Dollar 2
Electric and Gas Operating Comparison, 1961-1951 28-29 Letter of the Chairman of the Board 3
Directors and Oflicers.
30 and the President 1961-Sales of Energ'y Continued
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31 Upward (Review of Year) 5 Transfer Agents.
3; Balance Sheet 20-21 Registrars of Stock 31 22 Statement of income
. 23 Annual Meeting Notice.
31 Statement of Retained Earnings Notes to Financial Statements.
?.3-24 Disision Statistics 32 Auditors
- Opinion 25 Map of Service Area.
. Inside Back Coser ABOUT THIS ANNUAL REPORT Under the rules of the New York Stock Ex-ment counselors and financial writers.
change, the Company must send to each stock-Company employees design and prepare the holder, within three months of the end of the Annual Report, esen to ine point of making each year,a balance sheet and income statement with page ready for the lithographer's camera. No appropriate not s and the certificate of an inde-outside counsel is used in connection with the pendent auditor. This material constitutes an report. The cost of producing and mailing it is annual report in basic form.
about 30c a copy, less than one third of a cent Consumers Power Company, like most com-per share of common and preferred stock.
panies whose securities are listed on a national If you receive more than one copy it is prob.
securities exchange, adds information, photo-ably because you have stock registered under graphs and charts to help stockholders gain a more than one variation of your name. Esen more thorough understanding of their Company's though John Doe and John J. Doe base the same operations. The Annual Report is also useful to addrc s,the Company is not permitted to assume Company employees, sesurity analysts, invest-that they are the same person.
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PER CENT TWO-YE AR COMPARISON 1961 1960 INCRE ASE OR (DECRE AsE) 5186.399.000 5179,563,000 3.8 Electric revenue..............
116.123.000 100,769,000 15.2 Gas revenue 303,524.000 281,396,000 7.8 Total operating revenue Fuel consumed in electric and steam heating operations 30,614.000 30,372,000
.8 53,772.000 49,330,000 9.0 Cost of natural gas sold 67.500.000 65,000,000 3.8 Total payroll including construction 57.130.000 49,793,000 14.7 Taxes 35.6 9.000 32,903,000 8.3 Earnings available to common stock.
3.73 3.45 8.1 Earnings per share of common stock-average....
Earnings per share of common stock-end of year.
3.6S 3.45 6.7 2.60 2.60 Dividends paid per share on common stock 92.159,000 104,593,000 (11.9)
Plant expenditures 410,000 1,940,000 (78.9)
Acquisition of gas helds 91,749,000 102,653,000 (10.6)
All other constructior Funds generated internally (dipreciation, amortization, deferred Federal income tax and retained earnings).
47,410.000 42,593,000 11.3 Kilowatt. hour sales.
9.810.763.000 9,553,502,000 2.7 Gas sales (thousands of cubic feet).
130,954,000 118,296,000 10.7 Electric generating capacity, December 31 (kilowatts) 2,535,000 2,271,000 11.6 cents Cents Amot.nt per Ameent per WHERE IT CAME FROM tooo) p.kr HOW IT WAS USED (oco) o.wr b.2 17
. 5 52,303 ]
Electricity for llomes and Farms.. 5 79,727 26.2 Wagesincluding Pensions.
Taxes.
57,136 !
18.8 l17.6 Electric Power for industry.
54,719 18.0 Cost of Natural Gas Sold.
53,772 Fuel Consumed, Electric 30,180 9.9 Commercial and Other Electricity Purchased 4,178 i 1.4 hiaterials, Supplies,etc.
19,980 l 6.6 Hectric Resenue 51,953 17.0 Gr.nor liome Space Ifeating.
M,455 21.2 Depreciationand Amortization.
29,928 }
9.8 Use of Borrowed Money 17,752 l 5.8 ResidentialGas 10,449 3.4 Dividends to Preferred Stockho'ders 3,683 1.2 Industrial, Commercial and Di.idends to Common Other Gas Revenue 41,219 13.5 Stockholders 25,422 8.3 Common Stockholder Earnings Other Sources.
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5304.566 100.0 Total.
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'f' wwyer@n JAuts 11. CAMPBELL, President A.11. AYMosu, Jn., Chainnan of the Board To the Share Owners:
February 16,1962 In 1961 the Company's operats revenue exceeded $300,000,000 for the first time.
Growth of business was accompanied by an improsement in earnings. Earnings on 9,678,164 shares of common stock outstanding at the year-end were 53.68 per share as compared with $3.45 per share on 9,527,502 common shares outstanding at the end of 1960.
Revised gas rates designeo to produce additional operating revenue of $7,925,000 a year went into etTect hiay 11 under authorization of the N1ichigan Public Sersice Commission.
At its December meeting the Board of Directors declared a dividend of 70 cents on the common stock, payable February 20,1962. Quarterly dividends paid in 1961 w ere at the rate of 65 cents, making a total of $2.60 for the year.
The Board has proposed a two-for-one split of the common stock, effectise at the close of business on April 20,1962, provided the necessary approvals are obtained. A companion proposal is that the number of authorized common shares be increased from 14,000,000 to 25,000,000. These proposals will be submitted to the Company's stock-l holders for approval at the Annual hiceting to be held in Jackson, hiichigan, April 10.
j Suits have been filed by the Company against 39 manufacturers of electrical equip-ment, most of whom entered pleas of guilty or no contest in the recent anti trust suits in Philadelphia. Triple damages are asked for overcharges for 16 types cf electri' cal equip-l l
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ment. Purchases of these items by the Company have totaled many millions of dollars E
during the period involved in the cases. The exact amount of the overcharges is to be established through testimony in the trials. It is too early to predict the outcome of these suits or to judge pow any recovery will affect the financial statements. This litigation probably will not be concluded for some time.
In 1961 the Company invested more than $92,000,000 in further expansion of electric, gas and general service facilities needed to meet current and anticipated grow th of customer requirements. This brought the total of such expenditures during the last 10 years to $843,000,000. For 1962 the Company has budgeted 583,000,000, whicn in-cludes substantial amounts for the comp 1ction of the Big Rock Point Nuclear Plant and the first unit of the James H. Campbell Plant. Both of these plants are scheduled to be in operation in 1962.
We believe that the Company will sell more electricity and natural gas in 1962 than in any previous year and that operating revenues will attain a new height. Business con-ditions are continuing to improve. The automobile industry, which is the dominant industry in the Consumers service area, expects a sharp rise in production and sales. The number of customers in all classifications is increasing. Also,1962 will be the first year in which the full annual elTect of the increased gas rates will be realized.
On the national scene, the electric utility industry is faced with the most vigorous threat of further Federal encroachment in its history. Almost 25$'c of the electricity produced in the United States today is government power. Only 30 years ago the figure was about 57i. Under the present Federal administration, the concept of partnership betueen government and the investor-owned electric utility industry in the development of the great river valleys of our nation and the power that they can generate in meeting the power needs of the nation has been abandoned. New proposals have been advanced for the construction by the government of huge transmission lines and large steam-electric generating plants at the taxpayer's expense.
The investor-owned electric industry has provided the nation with an ample supply of electric power. The industry intends to continue to meet anticipated growth of electric requirements. There is no need and no excuse for the spending of additional tax money to pr.t the Federal government further into the electric business.
11 is pleasant to be able to express sincere appreciation to all thou faithful em-l ployees whose devotion to duty contributed so importantly to the fulfillment of the Company's purpose during 1961.
JAuts H. CAMPBELL A. H. AYMOND, JR.
Pre'sident Chairman of the Board 4
1961 SALES OF ENERGY CONTINUED UPWARD REVIEW OF THE VEAR The Company's business continued to grew ranks first in the state. Of all 1961 cars produced in 1961. Sales of electricity, representing about in the United States 32.4'] were produced in three fifths of the total business, were about 3%
hiichigan as compared with 30.9'] of 1960 cars.
above the 1960 total. Sales of natural gas in-A substantial share of hiichigan production of creased sharply, reflecting sales to about 45,000 automobiles and automotive parts and equip-additional space heating customers of all classi-ment is in Flint, Grand Rapids, Lansing, Pon-fications and full annual sales to the 60,000 new tiac, Wixom and other cities of the Company's space heating customers added in 1960.
Outstate hiichigan service area.
General business conditions exert a strong in-Industrial customers sersed by the Company fluence on the sales of electric and natural gas also include major prod ucers of chemicals, phar-utility companies. As to Consumers Power maceuticals, packaged foods, machinery, paper, Company, this influence is moderated by the furniture, metal products and stone, clay and size and diversity of our Outstate Michigan glass products. Petroleum, salt, limestone and service area. Though mainly an industrial region gravel production also are important in the it includes about 90,000 farms and many Outstate Michigan economy.
summer and winter tourist and vacation areas.
Largely because of the business recession in There is a fasorable distribution of Company the early months of the year, kilow att-hour elec-business among industrial, home and farm, tric sales to industrial customers were slightly commercial and other groups of customers.
below 1960 sales but were making strong gains Industryin Michiganiswelldiversified. Auto-toward the end of the year.
mobile manufacturing, largest and most impor-Commercial customers used considerably i
tant of the nation's durable goods industries, more electricity than in 1960 and there also was f
Statistics and Comparisons of many kinds will be found on Page 2 and in the Bal-ance Sheet on Pages 20-21, the Statement of Income on Page 22, the Statement of Retained Earnings on Page 23, and the 1961-51 comparisons on Pages 26-29.To avoid duplication and improse readability, statistics and comparisons are used sparingly in this review of 1961.
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an increase in residential use. Average residential ELECTRIC OPERATING REVENUE use of 4,315 kilowatt-hours was 7% above the j
1951-1961 national average use of 4,014 kilowatt-hours.
About 12,000 new electric customers were f
,0e added during the year. Of these, about 1,200 had 2
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substantially more gas in 1961 than in 1960.
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sales to the increased number of customers uho heat their homes with gas. About 70% of all o
1951 1952 1955 1954 1955 1954 1957 1958 1959 196o 1961 residential gas customers are now gas space Electric operating revenue increased from h' '5"E '"SIO " S'
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$93,563,000 in 1951 to $186,399,000 in 1961, or i
99%. Residentiat electric revenue showeda 10sTc The total number of gas customers was up l
increase. industrialelectric revenur increased 77?c about 23,000 at the year-end.
and commercial electric revenue increased 108%.
Natural gas service was extended during 1961 I
to the communities of Bath, Chesaning, DeWitt,
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GAS OPERATING REVENUE Grass Lake, Hemlock, Lake City, St. Charles 1951-1961 and Stockbridge.
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Competition is Lively M $ 43:
N ro Only about one fifth of all the Company's 5'
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electric and gas customers are " combination" 3
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gas service from Consumers. In most areas Con-
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,o energy sales with a natural gas utility or a sup-i plier of electric service. The Company also competes with distributors of oil, coal and bot-5951 1957 1953 1954 1955 1956 1957 1958 1959 196o 1961 p
Gas operating revenur increasedfrom 134,004,000 tied gas for cooking, water heating, space heat-in 1951 to $I15,123,000 in 1%I, or 242"c. This--
ing and other markets.
increase resultedfrom a 2877c increase in resi-in Michigan, natural gas has established s.t-dential space heating revenur anda 315Te increase in con mercial and industrial revenue.
self as the most popular form of house heating.
i Its growth potential has narrowed because of L. _ a,,~.s.-_
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the high degree of saturation of the market al-
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GAS RESIDENTIAL ready achiesed but the Company expects con-e.
tinued growth in the demands for natural gas SPACE HEATING CUSTOMERS December 31,1951-1961 for house heating. The sales potential for elec-y tric space Seating is largely unrealized. Its prac-f am
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ticality in homes designed for this type of heat-t-
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mg has been demonstrated. There are 1,850 g
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cottages and cabins in summer and winter resort d.O, 2.j /. :.1 y h
zw areas. Electric space heatmg presents a challeng-
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An important part of the energy used in a no home is for water heating. Early in 1961 the j
Company introduced the fast-recovery electric
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electric water heaters were sold by the Company ne nunke ofgas resuential space hearing cus.
and 612 cooperating dealers.
tomers increasedfrom 104,945 in 195I to 361,335 in i961, an increase of 24470 Consumers Promotes Outstate Michigan g
COMPARABLE ANNUAL COSTS A basic type of sales activity for a company such as Consumers is, of course, area develop-l OF FUEL FOR HOME HEATING ment. This term cosers much more than the y
m attraction of new industries. It involves working andEnad (g
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and for raising a family. The Company in 1961 l
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as in previous years met its full responsibilities in the field of area development, working in co-
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ne arerage ersuential spacc hearing customer of In some respects the results of area develop-ment etTorts are diflicult to measure. It is nota-
'he Comra"? Pays about $148for the naturalgas und to heat his home. For hand-pred coal he ble, however, that in 1961 there were expansions wouu ay *ut sis 5,for oilabout s193 and/or r
of industry in the Company's service area in-prorane abour $305.
volving among others such well-known names 7
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as General Motors, Kellogg, Dow and DuPont.
Expenses Were Higher New industrial enterprises were established in Operating and other expenses, considered as many communities. This was of special signifi-a whole, rose in approximate proportion to the cance in the northern part of the Lower Penin-growth in volume of business.
sula of Michigan where the end of summer Federal, state and local taxes totaled more tourist activity historically has brought a sea-than 557,000,000. This represented about 19 sonal decline of employment.
cents out of every dollar collected from our The Company continued in 1961 its long customers, not counting the 4g sales tax which established program of national adsertising set-the Company collects from its customers and ting forth the industrial advantages of Outstate remits to the State of Michigan.
Michigan. It also cooperated in the national The number of employees decreased from advertising programs of both the electric in-10,042 at the en 1 of 1960 to 9,905 at the end of dustry and the gas industry.
1961. Operating salaries and wages, howeser, Buick Disision of General h1otors Corporation in Flint is one of the large Outstate N1ichigan automobilemanufacturers served by Consurners. The photograph show s production work on the new V-6 engine deseloped by Buick for the 1962 Buick Special.
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amounted to 548,500,000, an increase of increase of $7,925,000, based on 1960 sales, 51,600,000 over 1960. Second-year wage in-which went into effect May 11. The Company creases under the 1960 contract with the Utility has appealed to the Ingham County Circuit Workers Union of America (AFL-CIO) be-Court on the grounds that the rate base used came effective March 1,1961, by the Commission was too low and that the In addition to operating salaries and wages, rate of return authorized is inadequate. This the Company's total payroll included about appeal is pending. The Commission has denied
$19,000,000 chargeable to construction, mer-a petition for rehearing filed by one individual chandising and other activities.
and a group calling itself the Michigan Utility More natural gas sold meant more gas pur-Rate Payers Association who said the increase chased from suppliers. In addition, unit costs allowed by the Commission was excessive.
were somewhat higher.
Total delivered cost of coal burned in electric Expansion Went Forward and steam heating operatings was' about the Expansion and improvement of facilities to same as in 1960 despite the rise in electric sales.
meet the increasing needs of customers and to The Company used 3,639,480 tons of coal in develop new business went forward in 1961.
1961, abcut 68,000 tons less than in 1960.
Electric system generating capacity rose about The fact that less coal was used to produce 12% to 2,535,000 kilowatts when the second more electric power emphasizes the improve-unit at the Karn Plant w ent on the line in March.
ment in the Comptny's steam-electric generat.
The 1961 record one-hour peak demand of ing system, which ranks among the five most 1,948,380 kilowatts set on December 11, 1961, efficient systems in.he nation. Further improve-was exceeded on January 22, 1962, by a new
.j ment in the system heat rate (the average num-record of approximately 1,965,000 kilowatts.
ber of heat units used to generate a kilowatt-Installation of generating equipment at the hour) was achieved when the second 265,000-new James H. Campbell Plant on Lake Michi-kilowatt unit in the new Dan E. Karn Plant near gan 30 miles west of Grand Rapids was in Bay City went into service early in 1961. Latest progress at the year-end. The first unit of this comparisons rate the Karn Plant as one of the plant is scheduled for operation in August 1962.
nation's most efficient plants in use of fuel.
It will have a capacity of 265 000 kilowatts.
Partly because of freight rate reductions, the Transmission lines will connect it with the Com-average delivered cost of coal in terms of heat-pany system at Grand Rapids and Battle Creek, ing value was slightly below 1960.
adding strength and flexibility to power supply To assure an adequate supply of coal for in the southwestern part of the service area.
future needs, contracts ranging from five years Nuclear Power Plants to twenty years in duration have been negotiated with nine coa! suppliers. Long-range contracts The Company's Big Rock Point Nuclear now preside for about half of the Company's Plant on Lake Michigan near Charlevoix mosed coal needs.
steadily toward completion. It incorporates a high power density boiling water reactor. This Oas Rate case plant is scheduled for operation in September The Company applied to the Michigan Public 1962 with an initial capacity of 50,000 kilowatts.
Service Commission in June 1960 for authority For four and a half years thereafter it will be a to increase gas rates 513,500,000 a year. In May center of research and development work to be 1961 the Commission authorized an annual conducted for the United States Atomic Energy
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'\\ p y-at N T s= A m c ar q TLhh@.fi hy.(u,q##4 y 3 IN h ~ ~~..; I A @Sq$ppyd M S,yO > 4 \\S. b2N'T N .[ a{Mf4 .kkhW,. -v%sM j E r q;f ; ht$ 1.w^+ g fp j fP yng%w m.< %wy ,$<e *k Opened in late June 1961, an Information Center at the site of the Compan3's Big Rock Point Nuclear Plant auracted more than 55,000 sisitors before the end of the year. Lecturers, motion pictures and exhibits tell sisitors how electric power is produced through use of nuclear fuel. Commission by Consumers and General Electric will be used as an integral part of the Consumers Company. The research objectives will be to in-generating system. Its location was chosen with crease power density, extend the life of nuclear a view to meeting expected growth of electric fuel and reduce fuel fabrication costs, thus use in the cities and resort areas in the northern achiesing greater economy in the use of nuclear part of the service area. fuel. More anu more heat will be developed in The Company is associated with a number of the core without increasing its size. Ultimately electric utility and industrial companies in the it is planned to merease the generating capacity cocstruction and pending operation of a fast of the plant to 75,000 kilowatts, the maximum neutron breeder reactor at the Enrico Fermi capacity for which it was designed. Atomic Power Plant near Monroe, Michigan. Electric power produced in the course of the Legal obstacI:s to the completion of the research and desclopment program will be used Fermi Plant were removed by a 1961 decision of in meeting the needs of customers. At the end of the United States SupremeCourt. Current plans the research and, development period the plant call for initial operation in 1962. ( ?M Ml0llMl,
The Company expanded its use of electronic computers for data processing. Customer billing EXPENDITURES FOR ADDITIONS and accounting is the largest single data process-ANDIMPROVEMENTS 1951-1961 ing job. To take full adsantage of high speed, large capacity equipment it was necessary to centralize customer billing and accounting for i2o M!"r"l all d...mstons of the Company. A punch card .mmqq.g "M = no
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,o j s large-scale IBN17070 computer using magnetic m ! 9l tapes and accessory electronic equipment. As of j a , ~ December 31, 1961, customer billing and ac-counting of four of the Company's disisions had been converted to the new tape system. The reriaining divisions are scheduled to be com-ay M om by.Dy1E. 1951 1952 1953 1954 1955 1956 1957 1958 1959 1960 1961 The asailability of large-scale computine Expenditures for the improvement and expansion g A P of the Company s electric and naturalgas service facilities amounted to 592 million in 1961. Over puter methods in the Company's engineering the past ten-year period, these expenditures har' and operations. Programs are under deselop-averaged 584 million per year. ment which should further increase etliciency and reduce operating costs. Use of aerial basket trucks as an aid to eflici-ency in construction, operation and mainten-panied by the widespread construction of elec-ance of the Company's overhead electrical tric substations, electric and gas transmission system was broadened. These trucks mechanic-and distribution lines, and many thousands of ally lift linemen and other workers to the height sersice extensions to take electricity or gas to of the work. individual customers. During 1961 the Company replaced many Construction of a service center to serve as standard size passenger cars and light trucks operating headquarters for the N1uskegon Divi-with compact vehicles. At the year-end the sion was started in hluskegon. It will be com-Company fleet of 3,500 vehicles included 200 pleted in 1962. A smaller service center for the compact units. Studies indicate that the use of rapidly growing t esort regions around lioughton compacts reduces expenses of operation and Lake and liiggins Lake was built at Prudenville. maintenance as well as original unit cost. The The Company's oflice and service center at ratio of' compacts to larger cars is expected to Albion was remodeled and expanded. increase as older units are retired. The Company was authorized by the h1ichi-Better Ways Were Found gan Public Service Commission to proceed with The never-ending search for better ways of a program of selective. maintenance of single-doing things continued. phase electric meters. This program reduces the s P00R BRSINAL
The Fermi Plant will supply heat to produce steam to operate a generating unit owned by SOURCES OF NATURAL GAS The Detroit Edison Company. The electric ON YEARLY PEAK DAYS power produced will go into the Detroit Edison 1951-1961 system, which is interconnected with that of ex Consumers at three major points. The goal is -7 'm.- e @r. ~" m . M : W :n 100,000 kilowatts of initial capacity. em.-
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g m wy mpg-g R Company are helpful to both companies. They , g,gg. g.ik permit coordination of generating plant con- -B wMt u struction programs and, of course, proside cach j" %[%y] [ k [ %- company with a strong additional source of ij = power in emergencies. Studies to assure fuller l N' realization of the benefits to be derived through j cooperation between the two companies are } ipo _ L constantly under wa; and include consideration of a proposed pumped storage hydroelectric I'3i i,32 i,33 i,54 i,33 i,36 i,37 i,3s i,3, i,6o i,6i plant for which Consumers is acquiring land on Lake Michigan south of Ludington. Pumped [ In a 24-hour period beginning at 9 a.m. January l 24,1961, gas send-out was 844 million cubicfeet, storage is a relatively inexpensive method of , n,w send-out recordfor the company. meeting peak electric loads by means of stored { water which has been pumped to a pool above i hydroelectric generators during periods of low demand and then released to produce power during peak demand periods. duced from fields in Macomb County and St. Clair County, Michigan. Deliveries under this cas supply strengthened new Panhandle contract during the winter of The Gas Department prepared itself in 1961 1961-62 are at the rate of 15 million cubic feet a for a peak demand this winter well above the day. Next winter and thereafter the daily rate record of 843 million cubic feet established in a will be 25 million cubic feet. The gas is carried single 24-hour period of January 24-25, 1961. to the Consumers system by a new 12-inch line, A new record send-out of 954 million cubic feet 20 miles long, from a PanhanJle processing was established January 9-10, 1962. Prepara-plant near New Baltimore, Michigan, to a point tions included the drilling of 50 additional stor-in the suburban area ner Detroit. This line was age wells in the Overisel gas storage field in built by Consumers. All tnese improvements southwestern Michigan to make more rapid de-provide welcome additions to the basic supply livery of gas possible. An increased supply of received from Panhandle through our sub-natural gas from the Gulf Coast areas was pro-sidiary, Michigan Gas Storage Company. vided by the terms of the contract with Trunkline c nstruction was Widespread Gas Company. An additional contract was made with Panhandle Eastern Pipe Line Company Projects involving greater electr.ic generating under which Consumers,is receiving gas pro-capacity and increased ;as supply were accom-j [ 9
i l 1 number of electric meters to be removed from Employee Training Was Expanded service and tested by about 70%. Under the new To train employees to do their work well is procedure, a random sample of meters in serv-one of the Company's responsibilities. This is ice is remosed and tested. The test results have particularly true of supersisory employees. been determined to be a reliable measure of Courses in Supersisory Ability Improvement metering accuracy. If the sample representing a were expanded in 1961. certain group of meters does not meet pre-Nearly all Company employees took part in a scribed test limits, all meters in that group series of discussion meetings on the American (about 8,000) will be remosed from service and economic system. The employees were divided tested. This selective maintenance program is among more than 400 discussion groups. Each expected to reduce metering costs without im-group held four two-hour meetings under the guidance of a trained discussion leader. The first pairing accuracy. Aerial basket trucks hase prosed their worth in ciectric line work and tree trimming. liere are ten of them ready to leave the manufacturer's plant for service in sis Con >c-'$ers divisions. -r f V e' ).
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The Electric Distribt:t on Department of North-i - three sessions were desoted to basic economics and the principles of osernment in the United west Disision receised the same award. South F States. The fourth dealt with the public utility Macomb District of the Southeast Disision and business, especially the operations of Consum-General hieter Operations receised the AGA crs Power Company. Safety Merit Award for one million manhours Supersisory, engineering, operating and tech-without accident. nical personnel who will operate the Big Rock Financial Deulogsnients Point Nuclear Plant have participated in train-ing programs. The services of The Unisersity of A new issue of 540,000,000 first mortgage Michigan, Jackson Junior College, General bonds,4% series, due 1991, was sold to an in-Electric Company, Power Reactor Deselopment sestment banking group headed by The First Company (Enrico Fermi Atomic Power Plant). Boston Corporation and Harriman Ripley & the Argonne National Laboratories and the Co. on a competitive bid of 99.69. The Com-United States Department of Health, among pany's interest cost on the bonds is 4.6443 7 others, hase been utilized. In addition, the men Proceeds of the issue were used to finance a hase receised valuable work experience at oper. portion of the Company's expansion and im-ating nuclear reactors through the generous co-provement program. operation of Commonwealth Edison Company, Since November 15, 1960, holders of Con-Duquesne Light Company and Yankee Atomic sumers 4%Q consertible debentures, due 1975. Electric Company. Personnel will start assign-hase had the right to ;onvert the debentures to ments at the plant site early in 1962 and will common stock at a conversion price of 560 a continue their training there. share, payable through surrender of 5100 princi-During the year about 300 employees aiailed pal amount of debentures and payment of 520 ( themselves of the educational assistance pro-in cash in exchange for each tw o shares. Betw een gram under which the Company pays part of that date and December 31,1961, the Company the cost of outside study related to Company issued 152,758 shares of common stock. These work. shares were issued upon the conversion of Consumers scholarships and fellowships in 21 57,637,900 of debentures together with the pay-colleges and universities were continued. The ment to the Company of 51,527,580 in cash. basic purpose is to encourage the study and Retirement of 4,000 shares of the 51.52 pre-teaching of engineering subjects. ferred stock under the retirement fund pro-The Company sent six outstanding high visions of the by-laws was authorized by the school students and seven teachers from the stockholders at the Annual Meeting in April. service area to the three-day National Youth These shares were purchased in 1960 for Conference on the Atom in Chicago in October. 5377,643. First mortgage bonds in the amount Accident prevention programs constantly of 54,411,000 were retired to fulfill sinking fund alert Consumers employees to the importance requirements. of safe, efficient operation. In the last five years, organization changes various employee work units base received 31 national awards for outstanding safety achieve-Rapid and continuing growth of gas business ments. Southern Region Bulk Power and the in the Company's Southeast Division near Battle Creek Division qualified in 1961 for the Detroit made it advisable to divide the area into eel Safety Achievement Award. Each had four new divisions, efl'ectise January 1,1962. worked one milliqn manhours without accident. They are designated as the Macomb, Pontiac, Continued to page 19 14
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N h ' 7'. M ***"" U ? uled to go into o; cation. This is the 5 ?a N D'_ l# stator, the stationary part of the gener- "/i ^ -- - !r ! 'J, %. c IW.,,R,..' ator, in w hich the rotor w ill revolve. The pictuic was taken in the Allis-Chalmers m.- j, plant at Milwaukee where the generator q W6 3 i.,' .;;;g%1 ~ % {+* ' ' - n_ e>:l was manufactured. < ~.- / / ff y \\ /. p; ;,er# V. < .e s l s pv s--. Also scheduled for first operation in 1962 Jg,. ?" y l is the Company's Big Rock Point Nu-n y, t y ' le - gg "C,$L9 h-f y e W k., :' he rh.c - f, l.X clear Plant. This winter photograph lg.$'. - i 4,' [Q ';. % [ S yJJ 4."- % g Q}j.g ( h', 4-tr M \\ shows the exterior in final form. The jMy;% . Eh,j 4 reactor sphere will be painted a light b? ' e Y - C( M j M $ *! Q ;1, N 9hf green. The ventilating stack will base K ~@V alternate bands of red and white for A -d.A" p~ F ~ W f^ ".#.~,3.Rf .-~ greater visibility. 'M Y ? s-v ' * : v
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- 2. Aerial view at Hay City shows Aetna Port-N j @ d.f l
land Cement Company plant in left foreground, i [iflif.J g"- y oil storage tanks, and the Saginaw River. with _An db 1.l4; }C~.UT :Mf 7 M y slips for the accommodation of Great Lakes d.f}I[ g la e F e ?"A and ocean ships. Aetna Portland is one of ses. A. a i l 4 %NpLQ L WWq {,),yl- +h-Michigan. M eral large cement manufacturers in Outstate h?,, -sw w-a;p 't " -.p l Il yf JL_ ".c.-g.W[g b' Th~?'WT 4h. T Q, j.Q;&[?% *M$ G,, il'l y ? p.
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k '_4-w.,v4,,Of', gg cutting machine,of Allied Paper Company ~ ;'s kg;rld. Bryant Dmsson, m Kalamazoo. c w"
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- 4. The De Waters Art Center and the Long-9 x a t:- g,
s M: way Planetarium are on the campus of Flint [ W- "'T;p, r' Junior College and the Flint Branch of the 9 a w.,
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- 5. In thelarger cities of Outstate Michigan the Company serses many shopping centers. They
-2 use electricity extensively for lighting, air con- .m ditioning. refrigeration and other purposes. " s i This is Rogers Plaza in Wyoming. Mich. f M 7 ' J. w.J O(y -urd..byM,.3.%'Mge.'. a N;;., ~ " se @ t v. g.,ur -.., p ?aY, W.*3..T.,:
- 6. At the McKone Farms near Jackson, an
-wy[- electric fruit sizer makes the grading of apples ,k? --- 'fy;;t4 1 M easy and accurate. Michigan had a 1961 apple !,, 3 t %A .y's#T ,I'- Np 4 j (4 crop of 16 million bushels. third largest in the -,p g,;42**f,. q-Mi-p. nation, valued at 524 million. l ( M' A) . f,[ ' a 'JA .1 g e h. [hAk
- 7. Automatic pinsetters have given great im-petus to bowling in recent years. This is the l
'p b m.b..,. ne, assembly line in the Brunswick Corporation Y,Mg MM. d Pinsetter Plant in Muskegon. Many large bowl-p c^rJy;7 ",, p k T Dghszass - D % y. &w a8W J"*T". ing centers also are served by Consumers. .V-[**; 9l
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Among the most modern pharmaceutical and N'b M ' N ED e .M J' e# ,.dC. 7.,.' *" :.....y.., ~- a b"'.w.w.f. s', p %,.,.,,_- chemical production facilities anywhere are h aw 1 those of The Upj. hn Company, Kalamazoo. -n 'P
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. U. y a a B < 1.c+" W~., W I OWEW e.nhance the charm of Hillside Inn with its Fire- %.a e,..;f a /;v s d;rg.s m,. p A c e Ti e[d? 2 JQ;Q'.y Spd(;O.]M --M side Lounge, a popular dining spot in Plym. pr W:1 , ;9 q%fg - outh, hiich., in the Company's new West jy f$.a A u 9'./JW r t A M-Wayne Disision nea-Detroit. ip'; Q G. gi d@, *> A 1- < qa. .d"NMR%@j63.Wh -I y l$ $ O.p' g E 8 T. + pU I .2 Op "* Ww., wth wn,sw nw .) 1 u,v m.. m m m - w w o ? wllm$w^ - \\ MWE &- 'W 'm m.0,)[' ~- vw,... e' m, n V,,du, m+ >.. d., _ l ~\\ m + +.a V. .wm np,vn v e
Continuedfrom page 14 South Oakland and West Wayne Disisions. companies, banks, trust companies, educational fleadquarters are in East Detroit, Pontiac, institutions, insestment trusts, pension funds, Royal Oak and Lisonia. The former district estates and trustees. managers of the four areas became disision More than 5,000 persons attended regional stockholder meetings held in the senice area managers. About half of all the Company's gas customers are in the four new disisions. immediately following the Annual Meeting in Dasid 11. Gerhard, division manager of the April 1961. It was the thirteenth consecutise Southeast Disision for nine years, was elected year in which such regional meetings were held. assistant sice president by the Board of Di-The 1962 Annual Meeting will be held Tues-rectors late in the year. lie assists Claude A. day, April 10 at 2 p.m. in the Company's Parnell Mulligan, vice president in charge of division Office Building,1945 West Parnell Road, Jack-operations, rates and customers'sersices. son, Michigan. Regional meetings will be held W. Anson liedgecock succeeded Donald B. as follows: MacDonald as division manager of the Saginaw Jackson -April 10 Disision in November. Battle Creek -April 11 Stockholders Lansing -April 12 At the year-end the common stock of the Royal Oak -April 16 Flint -April 17 Company was registered in 66,000 names, the preferred stock in 16,000. Of these 82,000 stock-Saginaw -April 18 holders, a majority live in Michigan, chiefly in Bay City -April 19 the area where Consumers supplies senice. Muskegon -April 23 Consumers stockholders live in every state and Kalamazoo -April 24 in several foreign countries. In addition to in-Grand Rapids -April 25 disidual stockholders, they include insurance Alma -April 26 Consumers serses almost 90.000 farms including the Fred Knoblauch farm near Blissfield, Mich. .-e ., e. g. '
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BALANCE SHEET Av oscamsun st. test AND 9980 December 31 g g._ g 1961 1960 UTILITY PLANT: At original cost-Electric. 5 872,798,102 5 819,139,863 Ga. 303,264,587 274,209,652 Steam heating. 3,701,008 3,726,767 Common to all departments. 26,977,512 26,145,180 51,206,741,209 51,123,221,462 Less-Provision for accrued depreciation. 218,979,574 193,025,185 5 987,761,635 $ 930,196,277 Cost in addition to original cost, in process of amortization 178,020 238.860 5 987,939,655 5 930,435.137 INVESTMENTS: Investment in common stock of Michigan Gas Storage Company, at cost (757c tock interest) $ 11,250,000 $ 11,250,000 s Other physical property, at cost or less 532,320 573,347 Other, at cost or less. 494,255 502.121 5 12,276.575 5 12.325,468 CURRENT ASSETS: 5 6,722,066 5 6,773,183 Cash. Accounts receivable-Customers, less reserves 24,940,496' 21,362,170 1,711,984 1,397,346 Other................... Materials and supplies, at average cost. 20,855,640' 22,538,918 Gas in underground storage, at average cost 8,302,022 5,652,456 Other. 7,151,122 6,271,847 5 69,683,330 $ 63.995,920 DEFERRED DEBITS: Capital stock expense 5 2,648,683 5 2,584,657 Debt premium and expense (net), applicable to a refunded issue,in process of amortization 170,785 239,099 Other. 632,946 725,322 5-3,452,414 5 3,549,0 3 $1,073,351,974 $1,010,305,603 + ~ The accompanying notes are an integralpart of this statement. j 20 l l
q vy* w - m t=. ;*:,, .s t i 3 , y .e ai 'a n b $ Y W $j e.k A:$.Js; W s.. k LI A BILITI E S 1961 1960 CAPITALIZATION: Capital stock (without par value) and retained earnings-Common stock-authorized 14,000,000 shares-outstanding 9,678.164 and 9,527,502 shares, respectively-609,274 shares reserved for conversion of debentures (see Note 1) 5 280,654,668 5 271.549,365 Retained earnings, of which 56,175,035 (equal to $7.50 per share of preferred stock) is not available for payment of 82,720,l_09 72,487,621 cash dividends on common stock 5 363,374,777 5 344,036.986 Preferred stock, cumulative-authorized 1,500,000 shares, entitled in involuntary liquidation to $100 per share (see 82,367,138 82,767,898 . Note 6). TOTAL CAPIT AL STOCK AND RETAINED EARNINGS 5 445,741,915 5 426,804,8S4 Long-term debt (see Note 7) 489.337,064 461,924,254 TOTAL CAPITAUZATION 5 935 78,979 5 888.729,138 CURRENT LIABILITIES: Current sinking fund requirement on first mortgage bonds. 5 4,838,000 5 4,438,000 Notes payable to banks. 4,400,000 3,300.000 Accounts payable. 22,857,581 25,532,942 Dividends declared on capital stock. 7,693,374 6,193,426 Accrued taxes 32,235,686 24,916,612 Accrued interest 5,861,265 5,311,891 6,955,747 6,437,814 Other. 5 84,841,653 5 76,130.685 i DEFERRED CREDITS: Premium less expenses on outstandinglong-term debt,in process j 5 80,700 5 410,078 of amortization Customers' advances for construction and other. 1,001,138 1,544.513 5 1,081,838 5 1,954.591 P L RESERVES: [5 43,189,862 5 35,940,870 Deferred Federalincome taxes 1,843.576 968.595 Other. 5 45,033,438 5 36.909.465 CONTRIBUTIONS IN AlD OF CONSTRUCTION. 5 7,316,066 5 6,581,724 l 51,073,351,974 ~51,010,305,603 y . The accompanying notes cre an integralpart c this statement. 21
STATEMENT OF INCOME ron tus v Ans sworo oscemmen si, ivai Awo i,ao Year Ended December 31 1961 1960 OPERATING REVENUE: Electric $186,399,427 5179,568,429 Gas. 116,122,787 100,769,449 Steam heating 1,001,675 1.058.055 TOTAL OPERATING REVENUE 5303,523,889 5281,395,933 OPERATING EXPENSES AND TAXES: Operation-Purchased and interchanged power. 5 4,177,546 5 4,390,548 Fuel consumed in electric and steam heating operations. 30,613,966 30,371,702 Cost of gas sold 53,771,586 49,329,737 O.qer. 58.149,212 57,331,832 TOTAL OPERAllON 5146,712,310 5141,423,819 hiaintenance. 15,362,967 13,695,933 Depreciation and amortization. 29,928,132 27,398,531 General taxes 16,922,249 15,433,274 Federalincome taxes. 32,965,048 27,300,541 f Provision for deferred FeJeralincome taxes 7,248.992 7,059.399 ( TOTAL OPERATING EXPENSES AND TAXES 5249,139,698 5232,311.497 NIT OPLRATING INCOME 5 54,384,191 5 49,084,436 OTHER INCOh1E: Dividends from hiichigan Css Storage Company 961,875 956,250 Other 79,999 156,501 5 55,426,% 5 5 50,197,187 GROSS INCOME............... INCOh1E DEDUCTIONS: Interest on long-term debt 5 17,622,922 5 14,644,285 Interest on notes payable 128,674 823,826 Interest charged to construction-credit' 1,879,517* 2,376.994* Other 2!6,389 504,841 TOTAL INCOME DEDUCDONS $ 16,088,468 5 13,595,958 NET INCOME 5 39,337,597 5 36,601,229 DIVIDENDS ON PREFERRED STOCK 3.683.453 3,698,259 NET INCOME AFfER DIVIDENDS ON PREEERRED STOcr. 5 35,654,144 5 32.902,970 EARNINGS PER SHARE OF COhih!ON STOCK BASED ON SHARES OUTSTANDING: Average during year. 53.73 53.45 At end of year. 53.68 53.45 ? The accompanying notes are an integralpart of this statement. 22 'I u
STATEMENT OF RETAINED EARNINGS FOR TMt YEARS ENDED DECEMBER 31,1961 A N D 19 6 0 Year Ended December 31 1961 1960 RETAINED EARNINGS-Beginning of year. 5 72,487,621 563,983,158 ADD-Net income after dividends on preferred stock. 35,654,144 32,902,970 Refund of excess profits taxes applicable to 1945 and prior years. 369,460 5108,141,765 597,255,588 DEDUCT-Cash dividends on common stock d. :ared at quarterly rate of 5.65 per share in 1960 and the first Gree quarters in 1961, and at quarterly rate of 5.70 per share in the fourth quarter of 1961 (paid $2.60 per share in 1961 and 1960). 25,421,656 24,767,967 RETAINED EARNINGS-End of year (see balance sheet) 5 82,720,109 572,487,621 The accompanying notes are an integralpart of this statement. Notes to the Financial Statements (1) On December 28,1961, the Board of Directors recorr.iended a 2 for I split in the common stock of the Company and an increase in the number of shares of authorized common stock from 14,000,000 shares to 25,000,000 shares. These changes will be effective in April 1962, subject to obtaining the requaed stockholder and governmental approvals. (2) The Company contem_ plates making capital expenditures for property additions during 1962 in a presently estimated amount of 583,000,000. In connection with the 1962 construction program, the Company has made substantial commitments for the purchase of construction materials. (3) On h1ay 4,1961, the hiichigan Public Service Commission ruled upon the Company's request for an annual increase of 513,500,000 in its gas revenues and issued an order granting the Company an increase of 57,925,000, based upon 1960 estimated sales. The new gas rates became effective cn hiay 11,1961. On June 2,1961, the Company appealed the Commission order to the Circuit Court of Ingham County, hiichigan, claiming that the rates approved by the hiichigan Public Service Commission are inadequate. (4) Since January 1.1955, the general ser ice and storage service rates of Panhandle Eastern Pipe Line Company, under which the Company's subsidiary, hiichigan Gas Storage Company, purchases gas for resale to the Company under a cost.of-service tariff have been increased from 23.7p to 33.9e per 1,000 cubic feet. Trunkline Gas Company, another gas supplier of the Company, also increased its rates, effective July 1,1960, from 40.06 to 43.46 per 1,000 cubic feet. In addition,in connection with an earlier proceeding involving Panhandle, the Federal Power Commission reserved certain issues for the period from February 20,1952, to January 1,1955. The Company did not increase its rates until hiay 11, 1961, to reflect the January 1,1955, and subsequent increases in cost of gas sold. The etTect of the in-creased rates since January 1,1955, which are subject to refund to the extent,if any, they are finally found to be unlawful, has been to increase the cost of gas sold by the Company through December 31, 1961, approximately $29,000,000 over the cost of the r,ame volumes of gas based on rates in effect immediately prior to)anuary 1,1955, for Panhandle and July 1,1960, for Trunkline. Of this total, 57,400,000 relates to 1960, 54,600,000 to the period January I to h1ay 11,1961, and $4,300,000 to the remainder of 1961. 23
t The Federal Power Commission by action taken on April 27,1961, ordered Panhandle to file resised tariff sheets providing for reduced rates during.he period February 20.1952, to September 1,1958, and ) to file a cortcutation of the refunds due to its customers. Panhandle's applications seeking rehearing r and stay of the orders of April 27,1961, were denied by the Commission. Panhandle filed the resised I tarifT sheets and computation of the refunds under protest and is seeking judicial review of said orders. Pending final determination of rates under which the Company has purchased gas since February 20, 1952, and the portion of any refunds which will be retained by the Company, the effect thereof on the accompanying financial statements cannot be determined. (5) Reference is made to the letter on page 3 for information regarding damage claims filed against sarious electrical equipment manufacturers. (6) Preferred stock is represented by: December 31 1961 1960 54.50 - 547,788 shares outstanding 5 54,778,800 5 54.778,800 54.52 - 179,550 shares outstanding, less 4,000 shares pur-chased in 1961 for retirement 17,555,000 17,955,000 54.16-100,000 shares outstanding 10,000,000 10,000,000 Premium on preferred stock 33,338 34,098 TOTAL PRErERRED STOCK. 5 82,367,138 5 82.767,89S (7) Long. term debt is represented by: December 31 1961 1960 First Mortgage Bonds-( ' $109,024,000 5109,024,000 2%Q Series duc 1975 2hG Series duc 1977 24,775,000 24,775,000 3%Q Series due 1981 39,700,000 39,700.000 3G Series due 1984 24,750,000 24,750.000 4G Series due 1986 40,000,000 40,000,000 3%G Series due 1987 25,000,000 25,000,000 4%Q Series due 1987 i 19,490,000 23,901,000 4%Q Series due 1988 40,000,000 40,000,000 4%Q Series due 1989
- 35,000,000 35,000,000 3%% Series due 1990 j 30,000,000 30,000,000 4%Q Series due 1990 i 35,000,000 35,000,000 4%Q Series due 1991 l 40.000,000
[ 5462,739,000 5427,150,000 Deduct-Current sinking fund requirement included in l current liabilities. 4,838,000 4,438,000 TOTAL TIRST MORTGAGE BONDS. ! $457,901,000 5422,712,000 q f 4%Q Convertible Debentures due 1975-convertible until matu-rity at the conversion price of 560 per share, payable by sur-render of $100 of Debentures and $20in cash in exchange for each two shares of common stock (not adjusted for proposed 30,463,700 37,996,800 stock split), subject to adjustments in certain events p 972.364 1.215,454 4Q Notes due 1963-1966. [ 5489,337,064 5461,924,254 JOTAL LONG-TERM DEBT. k e L 24 l L
m . -. - ~ - - - g-h. 1 - - - - - ~' i 4 l ARTHUR ANDERSEN & CO. Pawonscor Bt tz.ntwo DETROIT 20 4 To the Board of Directors, Consumers Power Company: COMPANY (a Maine corporation) as ofWe have examined the balan CONSUMERS P0h'ER related December 31,1961, and the statements of income and retained earnings for th then ended. Our examination was made in accordance with ally e year accepted auditing standards, and accordingly includ d tests'of the accounting records and su h gener-dures as we considered necessary in the cir e such c other auditin cumstances. g proce-and retained earnings which might result froIn our opinion, su of the cost of gas purchases as discussed in N t s in income m final to the financial statements, the accompan i settlement i o e 4 of the notes statements of income and retained earnings y ng balance sheet financial position of Consumers Pover Co and present fairly the 1961, and the results of its operations fo=pany as of December 31, and were prepared in conformity with generallyprinc r the year then ended, ing accepted account-preceding year. that of the Detroit, Michigan, February 2,1%2. 4 L _J e 25 r --,i ,e
l 19 61-19 51 FINANCIAL
SUMMARY
W sees seso sess sess STATEMENT OF INCOME D ATA Operating Revenue 5303,523,889 5281,395,933 5257,525,425 5227,631,181 Operating Revenue Deductions, Except Taxes 192,003,409 182,518,283 160,384,664 144,362,488 Taxes Federalincome Tax. 32,%5,048 27,300,541 29,541,943 23,795.448 Deferred FederalIncome Tax. 7,248,992 7,059,399 6,599,259 6.236,371 Other. 16,922,249 15,433,274 12,944,638 11,893,683 Net Operating income 54,384,191 49,084,436 48,054,901 41,343,191 Other income 1,041,874 1,112,751 1,508,025 1,388,171 inceme Deductions 17,% 7,985 13,972,932 14,736,130 13,102,150 Interest Charged to Construction-Credit 1,879,517 2,376,994 2,448,132 1,894.850 Net Income. 39,337,597 36,601,229 37,254,908 31,524,062 Dividends On Preferred Stc,ck 3,683,453 3,698,239 3,717,765 3,742,243 On Common Stock 23,421,656 24,767,967 22,618,626 21,132,823 Earnings Retained 10,232,488 8,135,003 10,918,517 6,648,991 Average Shares of Common Stock Outstanding (A) 9,568,115 9,525,665 8,885,I47 8,800,455 Earnings per Share of Common Stock-Average (A) 5 3.73 5 3.45 5 3.77 5 3.16 Dividends Paid per Share of Common Stock (A). 5 2.60 5 2.60 5 2.45 5 2.40 AveraFe Shares of Common Stock Outstanding (B) 9,568,115 9,525,665 8,885,147 8,800,45) Per Share of Common Stock-Average (B) \\ Earnings. 5 3.73 5 3.45 5 3.77 5 3.16 Interest Charged to Construction .20 .25 .28 .22 B A LANC E SH EET D ATA Utility Plant. 51,206,919,229 51,123,460,322 51,032,604,543 5931,717,903 Accrued Depreciation 218,979,574 193,025.185 172.870,164 149,821,234 Plant investment per Employee (C). 121,849 111,876 102,900 91,461 Capitalization Common Stock and Retained Earnings 5363,374,777 5344,036,986 5311,882,927 5291,069,164 Preferred Stock 82,367,138 82,767,898 83,168,658 83,569,418 Long-Term Debt. 489,337,064 461,924,254 415,935,000 394,862,700 Total Capitalization. 5935,078,979 5888,729,138 5810,986,585 5769,501,282 Capitalization Ratios-% Common Stock and Retained Earnings 38.9 38.7 38.5 37.8 Preferred Stock 8.8 9.3 10.2 10.9 Long. Term Debt. 52.3 52.0 $1.3 51.3 (A)-Unadjusted in years prior to 1956 for 57c tock dividend issued December 28,1955. s (B)-Adjusted in years prior to 1956 for $7o stock dividend issued December 28,1955. i (C)-At end of year. 26
) 0,,ran..g g g g.w,"p7"7.n q,, or m u.t m O 1 1 a, ww.u. ,w-..w. 1957 1958 1955 1954 1953 1952 1951 5221,461,831 5208,393,754 5189,431,360 5168,728,450 5155,034,360 5137,318,012 5128,594,938 138,773,917 131,042,233 118,602,276 107,570,183 97,179,035 88,896,159 81,239,381 26,581,533 27,086,965 24,995,000 20,506,090 21,061,968 17,924,279 17,460,259 3,572,383 4,208,808 3,216,335 1,746,751 1,037,747 263,817 10,593,20$ 9,223,420 7,947,163 7,207,235 6,250,466 3,846,217 6,817.467 39,940,799 36,832,308 34,670,586 31,698,189 29,505,144 24,387,540 23,057,631 1,365,125 1,055,782 1,462,791 1,324,062 1,581,479 ?,465,422 1,335,590 10,137,856 8,432,298 8,273,175 7,536,180 7,145.145 6,440,231 5,744,034 1,594,947 1,731,490 1,341,384 1,185,710 948,527 1,267,642 865,876 32,763,015 31,187,282 29,199,586 26,671,781 24,890,005 20,680,373 19,515,063 3,736,370 3,778,$51 3,543.937 3,367,141 3,367,687 3,368,231 3,369,120 21,094,044 18,339,687 17,069,219 16,442,335 13,321,286 15,750,567 11,511,111 7,912,401 8,869,044 8,586,430 6,862,285 6,201,032 1,561,575 4,634,832 8,697,631 8,239,861 7,662,200 7,473,798 6,742,890 6,176,693 5,70s;762 5 3.33 5 3.33 5 3.35 5 3.12 5 3.19 5 2.80 5 2.83 5 2.40 5 2.20 5 2.20 5 2.20 5 2.I 5 5 2.00 5 2.00 8,697,631 8,239,861 8,010,977 7,847,488 7,080,035 6,485,528 5,994,200 k 5 3.33 5 3.33 5 3.20 5 2.97 5 3.04 5 2.67 5 2.69 .18 .21 .17 .15 .13 .20 .14 5853,414,043 5758,360,576 5679,228,020 5613,581,239 5559,476,346 5510,035,'65 5460,917,496 r 132,972,735 120,390,331 109,328,075 99,079,559 92,601,080 84,590,843 79,450,934 7 81,355 72,363 66,919 62,388 59,639 56,898 54,079 5282,955,324 5251,559,323 5242,690,279 5217,194,422 5185,361,797 5157,529,889 5155,968,314 83,970,177 84,371,148 84,771,696 74,771,696 74,771,696 74,795,742 74,795,742 k 360,067,700 293,249,000 256,237,000 228,825,000 230,175,000 206 650,000 183,125,000 f 5726,993,201 5629,179,471 5'83,(98,975 5520,791,118 5490,308,493 5438,975,631 5413,889,056 f a [ 38.9 40.0 41.6 41.7 37.8 35.9 37.7 11.6 13.4 14.5 14.4 15.3 17.0 18.1 49.5 46.6 43.9 43.9 46.9 47.1 44.2 N tes (1) In December 1955, the Company issued to its common stockholders a dividend of 5% in common stock. y In recording this transaction on its books, the Company assigned a value of 545.25 per share to the 392,374 total shares issued as a dividend, a total of 517,754,924 The amount of this dicidend is not reflected in the above, figures. (2) Figures have been restated where applicable to reflect the refund in 1956 of purchased gas cost for the years 1952-1955 and related interest. 27 l
ELECTRIC AND OAS OPERATING COMPARISON e 19 61-19 51 Pt R CENT INCRt AR OR DLCRE A%E p l%t 196: COMPAR ED % l1H 1960 s969 ELECTRIC s9eo s9ss Electric Resenue Residential. 5 79,727,171 4.6 108.3 5 76,207,206 5 70,957,616 Commercial 43,291.862 7.3 107.5 40,338.087 37.904.24S Industrial 54,718,983 (.6) 77.2 55,054,612 52,423,154 Interdepar: mental and Other. 6.444,469 9.5 160.7 5,886.913 5.254.757 Total Electric Sales Resenue 5184,182,485 3.8 99.1 5177.456.818 5166,539,775 Miscellaneous Electric Resenue. 2,216,942 6.5 106.6 2.081.611 1,945.64' Total Electric Resenue 5186,399,427 3.8 99.2 5179.568,429 5165,455.422 Electric Sales (1,000 Kilowatt.llours) Residential. 3,376,511 5.3 124.9 3.205,406 3,094.393 Commercial 1,838,741 8.8 148.2 1,690,663 1,599,315 Industrial 4,180,726 (2.3) 70.3 4,279,984 4,012,905 Interdepartmental and Other. 414,785 9.9 198.7 377.452 325.647 Total Electric Sales 9,810,763 2.7 102.9 9.553.502 9.032.260 Total Electric Energ) Generated. Purchased and Interchanged, Net (1,000 Isilowatt.llours) 10,869,930 2.4 95.5 10,617.239 10.040,779 Ileat Rate-Btu of Fuci per Net Kilowatt.llour Generated. 9,675 (1,8) (17.1) 9,857 9,912 Generating Capacit.s-Kilowatts. 2,534,992 11.6 132.9 2,270,962 2,270.962 Peak Load-Kilowatts. 1,948,350 3.8 91.5 1,876.390 1,794,650 Residential Use of Electricity. Annual Average (Kilowatt.llours) 4,315 3.7 73.2 4,162 4,096 Electric Customers-End of Period. 885,832 1.4 27.2 873,834 85S,4
- c. t Gas Resenue Residential.
5 10,448,817 (5.5) 30.8 5 11,054.279 5 12.020,807 Residential Space lleating 64,454,859 23.5 287.1 52,200,274 45,805,934 Industrial and Commercial 37,148,937 12.7 315.0 32,962,377 28,509,026 Interdepartmental and Other (A) 2,314.246 (23.1) 4180.4 3.011,254 234.627 Total Gas Sales Reve. ue 5114,366.859 15.3 240.0 5 99.228,184 5 86,570,394 Misce!!ancous Gas Resenue. 1,755,928 13.9 385.3 1,541.265 1,366.601 Total Gas Resenue 5116,122,787 15.2 241.5 5100,769.449 5 87.936,995 Gas Sales (),000 Cubic Tect) Residential. 7,241,954 (11.6) 18.4 8,187,652 8,713,106 Residential Space lleating 64,303,774 19.6 243.7 53,760,032 47,827,2i5 Industrial and Commercial 52,797,012 8.1 300.3 48,853,317 41,690.243 Interdepartmental and Other (A) 6,611,019 (ll.8) 9506.0 7,494.854 304.449 Total Gas Sales. __130,953,759 10;7 243.9 118,295.855 98,535.013 l-Gas Purchased and Produced (I,000 Cubic Feet) Sales. 130,953,759 10.7 243.9 118,295,855 98,535,013 Net to Storage 5.872,391 (42.9) 10,283,514 Unbilled, Lost and Company Use. 2.338,405 (65.9) 34.5 6,855,227 815,262 Total Gas Purchased and Produced. 139,164,555 2,8 249.5 135,434,596 99.350.275 Masimum 24.llour Gas Send-Out (1,000 Cubic Feet) 843.543 2.7 240.8 821.362 602,123 Gas Customers-End of Period. 562,897 4.3 69.3 ' 539,474 509,462 Gas Residential Space.licating Customers-End of Period.. ?. 361,335 12.2 244,3 321,909 265,0 (A) Includes intracompany sales of gas to the electric department for use in generating electricity ir, years 1961 and 1960, and substantial sales to another public utdity, in 1960. 28
e a c-w.v :.- - t, - -.:~- ,-<jm,' ,*'g , 7.p ,s, ,,, J M,,j M g p ;, y.. g t9se s9s7 t9se s955 195f 1953 1952 1951 5 M,314,868 5 61,540,221 5 57,2M,960 5 52,427,172 5 48,313,852 5 44,291,959 5 41,091,553 5 38,278,357 33,722,M3 32,017,441 29,790,312 27,629,690 25,103,M4 23,647,139 22,007,859 20,k66,972 45,785,860 48,343,983 46,352,068 44,213,748 37,281,138 37,354,130 32,205,227 30,874,482 4.582,742 4,150,513 3.309,399 2,940,547 2,76S,043 2,792,292 2,700,93S 2,472,324 5143,406,113 5146,052,158 5136,722,739 5127,211,157 5113,466,677 5109.085,520 5 98,005,577 5 92,492,135 1,756,798 1,735,556 1,707,543 1,457,848 1,475,291 1,202.994 1,078,558 1,073.150 5150.162,911 5147,787,714 5138,430,282 5128,669,005 5114,941,968 5109,288,514 5 99,084,135 5 93,565,3 5 2,890,249 2,729,873 2,501,144 2,244,271 2,033,078 1,816,104 1,M7,921 1,501,6fo 1,409,658 1,238,406 1,139,903 1,047,657 929,997 861,775 791,717 740,719 3,373,978 3,603,532 3,749,452 3,783,935 2,976,137 2,992,279 2,522,270 2,454,344 274,189 246,730 192.381 169,283 155,766 160,416 154,557 138,859 7,948,074 8.018,541 7,582.880 7,245,146 6,094,978 5,830,574 5,116,465 4,835,582 8,908,944 9,002,522 8,532,471 8,178,423 6,9M,674 6,612,227 5,854,025 5,560,637 9,896 10,423 10,799 10,908 10,882 11,185 11,665 11,676 2,004,938 1,848,688 1,712,8S8 1,558,118 1,402,16S 1,404,618 1,282,048 1,0S8,379 1,738,785 1,632,005 1,570,820 1,458,070 1,288,370 1,170,415 1,124,465 1,017,427 3,905 3,761 3,536 3,282 3,079 2,846 2,659 2,492 I 843,276 827,888 810.875 787,662 761,530 736,936 714,225 696,232 5 12,516,466 5 12,074,857 5 11,232,443 5 10,782,624 5 10.419,563 5 9,527,285 5 8,174,G6 5 7,985,443 38,030,746 36,262,193 35,596,876 29,167,905 25,993,234 21,189,121 18,076,869 16,652,071 23,650,121 23,030,884 20,990,057 19,009,009 15,722,624 13.512,832 10,550,659 8,950,573 190,852 151,543 144,672 129,418 110,290 116.452 75,478 54,066 5 75,108,685 5 71,519,477 5 67,9M,N8 5 59,0S8,956 5 52,245,711 5 44,345,690 5 36,877,072 5 33,M2,153 1,200,380 1,074.923 950,250 715,587 553,421 417,743 340,110 361,815 5 76,309,065 5 72,594.400 5 68,914.298 5 59,804,543 5 52,799,132 3 44,763,433 5 37,217,182 5 34,003,968 8,990,599 8,548,906 7,993,181 7,593,440 7,169,030 6,486,509 6,323,3S8 6,114,610 40,131,587 37,638,842 36,869,414 29,980,627 26,513,803 21,730,535 20.240,028 18,737,422 t 34,446,406 34,324,931 31,123,993 28,948,655 22,971,537 20,175,900 15,699.402 13,190,185 244,638 193,380 184,0S1 164,424 130.072 144,203 100,690 68,822 83,813,230 80,706,059 76,170,669 66,6S7,146 56,784,4_42 48,537,152 42,363,508 38,081,039 83,913,230 80,706,059 76,170,669 66,687,146 56,784,442 48,537,152 42,363,508 38,081,039 3,728,363 1,800,161 766,055 2,757,293 2,072,651 2,405,702 1,525,198 1,738,334 87,541,593 82,506,220 76,936,724 69,444,439 58,857,093 50,942,854 43,888,706 39,819,373 574,989 505,462 400,942 440,054 356,110 310,036 232,547 247,498 i 483,682 452,922 443,730 426,714 395,509 373,458 351,315 332,C' 234,184 205,8S4 192,754 183,491 158,1N 140,590 122,223 IN,945 P Non: Gas revenues for the years 1952 through 1954 have been restated to reflect the refund to the Company's customers t ordered by the Michigan Public Service Commission as a result of a refund of purchased gas cost for those > cars, L 29 r h I ( ... - ~.
THf! SOARD OF DIRECTORS 2 A. II. AYMoso, JR., Jackson, Michigan RALPn C. MoRLty, JR., Saginaw, Michigan Chairman of the Board of the Company President of Aforley Brothers, Wholesale liardware Distributors RostRT P. BRIGGS, Jackson, Michigan Executive Vice President of the Company DoxALn J. PORTER, Grand Rapids, Michigan President of Porter.Hadley Company JAurs H. CAMPBELL, Jackson, Michigan Wholesale Building Materials ~ President of the Company ^"I"'" "* ^ " * ' "I' E"" LtE D. FERDEN, Chesaning, Michigan Vice President and Chairman of Executive y,,,,, Committe of Citi: ens Commercial & Savings Bank FRANK H AMILToN, New York, N. Y. Pirst Vice Pres, dent ofBankers Trust Company EDWIN TsioRNE, New York, N. Y. DAN E. KARN, J3ckson, Michigan Senior Vice President of Consultant to the Company Pirst. Mat:onal City Bank dos T. McKosE, Jackson, Michigan JusTis R. WniTisG, Jackson, Michigan Partner of the lawfrm of Chairman of Executive Committee of the AlcKone, Badgley, Domke & Kiine Company C COMPANY OFFICERS A. H. AYMoso, JR., Chairman of the Board BIRex G. CAMPBELL, Vite President Chief Executive Officer Marketing J AMrs II. CAMPDELL, President WALTtR C. SenMini, Vice President Chief Operating OfIicer Electric and General Engineering, Construction, Land and Right-of way, RontRT P. BRIGGS, TJecutive rice president Purchasing Corporate, Finance and Buildings HN W. KLUBERG, Controller H. STANLEY RicnMoso, Vice President WALv t x. BoRis, Secretary CLAUDE A. MULLIGAN, Vice President Divisions, Rates and Customers' Services GEORGE E. OtusTED, Treasurer NARRY R. WALL, Vice President HAnoto P. GRAVES, Ceneral Counsel Electric Operations DAvio H. GEnuAno, Assistant Vice President JonN B. SIMrsoN, Vice President Gas Operatiops ROBERT D. ALLEN, Assistant to the President C x
DIVISIONS AND MANAGa!RS Oiandquarters cities in parenthesis) BATTLE CREEK DIVISION (Battle Creek)..............................GORDON W. HOwARD B AY CITY DIVISION (Bay City)......................................... Louis A. VAUPRE C ENTRA L DIVISION (Alma)........................................ H rRsERT L. ZrEGE.wE N FLINT DIVISION (Flint)................................................ ARTHUR L. CRAWLEY GR AND RAPIDS DIVISION (Grand Rapids).............................GORooN L. CARSON J ACKSON DIVISION (Jackson)................................ '........... FR ANK B. ADAMS KALAM AZOO DIVISION (Kalamazoo)............................... ..... ARTHUR H. LEE LANSING DIVISION (Lansing)........................................WituAM R. CA RLYON M ACOM B DIVISION (East Detroit)...................................... GEORGE L. M AYHEW M USK EGON DIVISION (M uskegon)....................................... LIONEL L. BOOl h NORTHWEST DIVISION (Traverse City)................................... BOB D. HtLTv PONTI AC DIVISION (Pontiac)......................................... CHARLES F. BROWN SAGIN AW DIVISION (Saginaw)........................................ ANSON W. HEDGECOCK SOUTH OAKLAND DIVISION (Royal Oak).............................WILFRED L. WmmELo WEST WAY NE DIVISION (Livonia)..................................... JAMES P. THOMAS, JR. l TRANSFER AGENTS REGISTRARS OF STOCK Common and Preferred Stock Preferred Stock Consumers Power Company. Jackson, Michigan City Bank and Trust Company Agents of the Company.... 300 Park Avenue Jackson, Michigan New York 22, New York He First National City Bank of New York New York 15, New York Consumers Power Company common stock is { Common Stock lated for trading on the New York, Midwest and Detroit Stock exchanges; preferred stock on the The National Bank of Jackson New York and Detroit exchanges; certain series Jackson, Michigan of mortgage bonds and the convertible deben-The First National City Bank, l tures on the New York Stock Exchange. New York 15, New York ) ANNUAL MEETING l l The annual meeting of stockholders of the Company will take place Tuesday, April 10,1962, at 2 p.m. in the Company's Parnell Office Building,1945 West Parnell Road, Jackson, Michigan. A notice of meeting, proxy statement and proxy will be mailed to stockholders on or about March 7,1962. Pron)pt signing and return of your proxy or proxies will be appreciated by the Company management. t e-31 k w'
( I V K E Y TO M A P 5 0*,4"I,l"*** 1)itision llcadquarters .ee Suhmarine cable ae row Straits of <e. a Mackinac to Ediwa Sault Electric Sonice Area Steam-Electric Generating 1*lant Electric Company C Natural Gas Senice Area g Nuclear l*lant b1 Gas Comprewor Station g h II)dro-Electric Generating 1*lant b Gas Field l'urchase Point Electric and Natural Gas Senice Area [. " _ __ Boundaries of Company's IS Operating 1%isions u - - -- - --- - --- ---- --- O P E R A T I N G D I V I S I O N S - ---- --- - ------- - ---- -- --------- -- ( A S O F J A N U A R Y 1,1962) DIVISION ELECTRIC GAS POPULATION AREA SERVED (with P.O. Address if different) CUSTOMERS CUSTOMERS (*4 360 Census) (Square Miles) llattle Creek $5,038 2,206 180,000 1,493 Day City 72,615 30,525 210,000 3,658 Central (Alma) 61,845 8,124 180,000 3,913 N Flint 143,692 86,145 500,000 2,147 Grand itapids 133,950 430,000 1,520 Jackson 93,278 26,235 300,000 2,632 Kalamazoo 71,968 35,228 250,000 1,653 Lansing 53,526 67,088 380,000 2,717 Macomb (East De:roit) 91,554 380,000 233 Muskegon 69,311 210,000 1,855 Northwest (Traverse City) 61,595 463 160,000 5,732 p. l'ontiac I4,735 41,101 250,000 350 Saginaw 54,279 3N,242 180,000 677 South Oakland (Itoyal Oak) 88,268 3t 0,000 l12 West Wayne (Lisoni.i) 47,718 230,000 260 TOTAL 885,832 562,h97 4,200,000 28,952 m - m
1 CONSUMERS POWER COMPANY Electric and Natural Gas Systems The Consumers service area consists of about 29,000 square miles, roughly 707o of Michigan's Lower Peninsula and 507c of the whole state. About 4,200,000 people live in the area served by the Company. Electric and natural gas service (in many cases both)is supplied in 331 cities and villages,800 townships and 515 unincorporated communities. The Company sells electric power to three electric utility companies (one in the Upper Peninsula), nine municipal electric systems and four rural cooperatives. Power is interchanged with The Detroit Edison Company at three major interconnections. Electric generating capacity of Consumers-owned plants,2,535,000 kilowatts,94% in steam-electric plants,6% in hydro-electric plants. The Company Operates: 6,000 miles of electric transmission lines 37,600 miles of electric distribution lines 300 miles of gas transmission lines (Subsidiary, Michigan Gas Storage Company, fM miles) 8,700 miles of gas distribution lines L s
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l THIS IS OUTSTATE MICHIGAN The Consumers Power Company service area is a spacious land with extensive farm and resort areas. Cities rano from small to moderately big. Industry is diversified. Schools, colleges and universities rank with the best. Modern freeways and year-around outdoor recreation help make this a good place to live and work.
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-a r.7Asi;;i.3.5.r- [ N., N[, i l a 1961 Annual Report CONSUMERS POWER COMPANY L ? s p g O R. ,4 +
~-...~ -. l ( -CONSUMERS POWER' COMPANY Big Rock Plant Summary Budget Estimated Construction Costs Nuclear Pcwer Plant Land and Land Rignts. $- 183,000 Bechtel Corp. Contract ' Engineering Design & Inspection $5,676,000 e ~ Structures & Improvements '3,173,000 Reactor Plant Equipment 8,855,000 Turbine Plant 4,214,000 Accessory Electric Equipment 541,000 Miscellaneous Equipment 278,000 Total Pechtel Corp. 22,737,000 Exclusions From Bechtel Contract and Other Costs Access Road & Railroad Spur $ 344,300 Contingencies 928,000 Supervisions, Admin & Misc 1,093,700 ( Interest During Conztruction 974,000 Total Miscellaneous 3,3ho,000 Plant' Substation 375,000 Transmission Line Connection to System 365,000 -Total Estimated Construction Costs $27,000,000 Estimated Operating Expenses During h-1/2 Year Resenrth and Development Program 1962 1963 1964 1965 1966 Total Operating and i Maintenance $238,040 $ 6h8,ooo $ 650,000 $ 686,000 $ 785,000 $3,007,040 ' Insurance 83,100 255,600 255,600 255,600 255,600 1,105,500 1Puel' 199,000 891,h00 1,092,000 1,587,000 1,456,000 5,225,h00 Total' $520,1ho $1,795,000 $1,997,600 $2,528,600 $2,496,600 $9,337,9ho I Note: : operating and Maintenance costs include estimated escalation for each year. Fuel costs are 1962 estimates but do not include AEC Use Charge.
NUCt, EAR ENERGY UABluTY INSURANCE ASSOCIATION
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Nuclear Energy Umbility Policy Na NF. - 117 (Facility Form) eacLARATIONS hem 1. Nuned Insund C Wsumers Power Company Addnas Charlevoix, Michigan (No. Stnet Town or Caty State) hem 2. Policy Period: Beginning at 12:01. A.M. on the 15th day of January .i, 62 - and continuing through the efective date of the cancelation or termmation of this policy, standard time at the address of the named insured as stated herein. hem 5. Description of the Facuity: 3, cation Big Rock Point (See Endorsement No. 1.) t Type Power Reactor The operator of the facaity is Consumers Power Con:pany Irem 4. 'Ihe limit of the companies' liability is $ 1,000,000 __ subject to a!! the terms of this policy having reference thereto. Item S. Advance Premium a 100.00 Item 6. These declaretions and the whedules forming a part hereof give a complete description of the f acility, insofar as it relates to the nuclest energy hazard, except as noted No Exceptions bO h-Janu W N 62 coon,,,,igned by Authonzed Represerazt ye , 39 Date of luue This is to cert.ify that this is a true copy of the Declarations Pace'a'nd Endorsenents l l numbered i through 3 rade a part of Nuclear Energy Liability olicy (facility For=) ho. NF-ll7. No insurance is afforded axier this true copy. 4 F. Bo-Nuclear Faergy I.iabaity Policy (Facility Form) 2/1/$7 (Second Revision) Assistant Ogncr&l ManaCCr l Nuclear Riergy Liability Insuzunce Association
Nuclear Energy Ustery Insuranco ,8. i NUCLEAR ENEASY UADIUTY INSURANCE ASSOCIATION [bs p/ r I '] (( DESCRIPTION OF: THE.OCATION Et:DORSEMEt:T I ./ v L It i cgreed that in Item 3 of the declarations the " Location" is completed to read: All buildings and prertises owned or occupied by or rented to the named insured and all those c rtain pieces or parcels of land situate and being in the Township 9f Hayes, County of Charlevoi: and State of Michigan, and described as follows: Goverrr.ent Lots one (1) and two (2) and the East one-half (E}} of the Southeast one-quarter (SE{} of Section seven (7); also that part of Government Lot three (3) of said Section seven (7) lying Northerly of the East and West quarter line of said section; also the entire West l ons-half (W ) of section eight (8); also all that part of the West one-half (U}) of the Eset one-half (Eh) of Section eight (6) lying Northwesterly of the center line of Highway US-31; also all that part of the North one-half (Nh) of the North one-half (Nh) of the Southeast ona-quarter (SE{} of Section eight (8) lying Easterly of.the center lins of Highway US-31; cleo the East one-half (E ) of the Northwest one-quarter (NWh) of Section seventeen (17), execpt the right of way of The Chesapeake and Ohio Railway; being all in Township thirty-four (3h) North, Range seven (7) West; i And also, all of the unpatented overflowed lands and lake bottom lands belonging to or held in trust by the State of Michigan lying Northerly of the West one-half (W}) of Section eight (B), Township thirty-four (3h) North, Range seven (7) West,. Hayes Township, Charlevoix County, Michirs: cnd lying within the areas shown on Consumers Power Conpany. Drawing No. E-16hC6 which is atteched hereto and made a part hereof, which areas are described as follows: I. A strip of land one hundred (100) feet in width being fifty (50) feet on each' side of a conter line described as follows: to find the place of beginning of said center line, con-ence at the Southwest corner of Section eight (8), Township thirty-four (3h) North, Ra ge seven (7) West, run thence due North along the West line of said section three n thousand nine hundred forty-eight (39h8) feet to Meander Post No. 7 on the West line of said aection, thence South eighty degrees East (S 800 E) along the meander line one thousand two 2ndred ninety-seven and ninety-two hundredths (1297.92) feet to the place of beginning of the center line of said one hundred (100) foot, strip, running thence North four degrees West (E h0 W) one thousand four hundred twenty (1h20) feet to the place of ending.
- 2. A strip of land one hundred (100) feet in width beik fifty (50) feet on each side of center line described as follows: to find the place 'of beginning of said center line comence at Mcander Post No. 7 on the West line of said Section eight (8) as above described, thence South eighty degrees East (S 800 E) along the meander line ore thousand three hundred twenty (1320) feet, thence due East along the meander line one hundred fifteen and seventy-six hundredths (115.76) feet to the place of beginning of the center line of said one hundred (100) foot strip, running thence North thirty degrees six minutes East (N 300 06' E) two hundred tan (210) feet to the place of ending.
? i January 15, 1962 7, f,,,, p,,,r poi;cy x, NF-117 do 12:01 A.M. Standard Time Consumers Power Conpany g,g,, Date cf Inue January 18, 1962 For the Subscribing Companies 37 Endorsement No 1 Countersigned by i
NUCLEAR ENEROY LIABILITY POLICY (FACILITY FORM) ) I AMENDMENT OF TRANSPORTATION COYERAG%~? 3P W (Indemnified Nuclear Facility) s It is agreed that the de6nition of "insund shipment" la Insuring Agreement III b amended to tead: "iernred riipsest' means a shipment of souxe material, special nuclear material, spent fuel or weste, herein called " material," (1) to the facility from any location encept an indemni6ed nuclear facility, but only if the transportation of the material is not by predeterminadon to be interrupted by removal of the outerial from a transporting conveyance for any purpose other than the continuation of ks tramportation, or (2) from the facility to any other location, but only antil the material is removed from a transporting conversace for any Un other than the continuation of its transportation." t [. January l$, 1%2 NF-117 To form a part of Policy No is E o Consumers Power Company g,,,g, Janua y , 1962 D te of ruue For the Subscribing companies ( .f
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~ W fl ) 9 Nuclear Energy Li:bility Ins:rance h [ NUCLEAR ENERGY LIABILITY INSURANCE ASSOCIATION ( AMENDATORY ENDORSEMENT (Facility Form) It la agreed that: L The ftrat sentence of the definition of nuclear facility is amended to read: " nuclear facility" means "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters. IL The definition of " indemnified nuclear facility" is replaced by the following: " indemnified nuclear facility" means (1) "the facility" as defined in any Nuclear Energy Liability Policy (Facility Form) issued by Nuclear Energy Liability Insurance Association or by Mutual Atomic Energy Liability Underwriters, or (2) any other nuclear facility, if financial protection is required pursuant to the Atomic Energy Act of 1954, or any law amendatory thereof, with respect to any activities or operations conducted thereat; IIL Condition 4 is replaced by the following: LIMITATION OF LIABILITY; COMMON OCCURRENCE Any occur-rence or series of occurrences resulting in bodily injury or property damage arising out of the radioactive, toxic, explosive or other hazardous properties of (a) nuclear material discharged or dispersed from the facility over a period of days, weeks, months or longer and also arising out of such properties of other nuclear material so discharged or dis-persed from one or more other nuclear facilities insured under any Nuclear Energy Liability Policy (Facility Forra) issued by Nuclear Energy Liability Insurance Association, or (b) source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afTorded under this policy and also arising out of such properties of other source material, special nuclear material, spent fuel or waste in the course of transportation for which insurance is afforded under 1 one or more other Nuc1 car Energy Liability Policies (Facility Form) issued by Nuclear Energy Liabdity Insurance Association, shall be deemed to lie a common occurrence resulting in bodily injury ( or property damage caused by the nuclear energy hazard. With respect to such bodily injury and property damage (1) the total aggregate liability of the members of Nuclear Energy Liability Insurance Association under all Nuclear Energy Liability Policies (Facility Form), including this policy, applicable to such common
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1 occurrenes shrll be thn sum cf the limits of liability cf all such policirs, the limit of liability of each such policy being as determined by Condi-tion 3 thereof, but in no event shall such total aggregate liability of ( such members exceed $46,500,000; (2) the total liability of the com-panies under this policy shall not exceed that proportion of the total aggregate liability of the members of Nuclear Energy Liability Insurance Association, as stated in clause (1) above, which (a) the limit of liability of this policy, as determined by Condition 3, bears to (b) the sum of the limits of liability of all such policies issued by such members, the limit of liability of each such policy being as determined b." Condition 3 thereof. The provisions of this condition shall noi operate to increase the limit of the companies' liability under this policy. IY. The second paragraph of Condition 12 "Other Insurance" is amended to read: "If the Insured has other valid and collectible insurance (other than such concurrent insurance or any other nuclear energy liability insurance issued by Nuclear Energy Liability Insurance Associa-tion or Mutual Atomic Energy Liability Underwriters to any persen or organization) applicable to loss or expense covered by this policy, the insurance afforded by this policy shall be excess insur-ance over such other insurance; provided, with respect to any person who is not employed at and in connection with the faellity, such insurance as is afforded by this policy for bodily injury to an emp'.oyee of the insured arising out of and in the course of his employment shall be primary insurance under such other insurance." \\ ( " d' [ d January 15, 1962 To form a pan of Policy No NF-117 12:01 A.M. Standard Tune o Consumers Power Compary Jaralary 18a _1962 For thombura>ing apenpanics b d Issue By i p'> uuo r tr 3 mantentsW h Endorsement No Pacility form 11-61
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( AMOUNT OF FINANCIAL PROTECTION REQUIRED (10 CFR R 140.12)- 1. Population. Factor. (P) The following table includes those minor civil divisions . wholly or partly-within a circle having the Big Rock Point Nuclear - Plant as its center'and having a radius in miles of 12 53, being the approximate square root of 157, which is the maxtnwn power level in thermal megawatts to be authorized under the proposed provisional operating license. The 1960 population of-each minor civil division'is divided by the square of the estimated distance to the nearest mile from the reactor to the geographic center of the minor civil division, and the resulting quotients are added in order to deterrir:4 the' Popula-tion Factor. Population Divided 1960 Distance by Distance Within E2 53 Miles Population Distance Squared Squared - Banks Township 1216 14 196 6.20 Bay Township. 348 8 64 5 44 . Boyne City 2T97 14 196 14.27 Charlevoix City 2751 4 16 171 94 Charlevoix Township 290 4 16 18.13 Evangeline Township 420 12 144 2 92 Eveline Township 602 8 64 9 41 I Hayes Township 499 3 9 55.44 Marion Township 516 8 64 8.06 ~ Melrose Township 672 16 256 2.63 i Norwood Townchip 243 10 100 2.43 South Arm Township 726 14 196 3 70 Wilson Township 464-16 256 1.81 Bear Creek Township 1859 14 196 9.48 Friendship Township 318 13 169 1.88 i Harbor Springs City 1433 11 121 11.8h Little Traverse Township 602 225 2.68-l Resort Township 748 8 64 11.69 Petoskey City 6138 11 121 50 73 West Traverse Township 326 11 121 2.69 Sum of the Quotients 393 37 Since the sum of the quotients is less than 1001, the Population Factor-is 1. -2' ,e r m * -
... ~ ~ 2 }. 2. Base Amount-of Financial Protection (B) The base amount of financial protection is equal. to- $150 times the maximum power level, expressed in thermal kilowatts, as authorized by the applicable operating license. Consumers has applied by Amendment No. 3 to its Application for Reactor Construction Permit and operating License (Docket No. 50-155, Amendment No. 3, . December 1,-1961) for'a provisional operating license authorizing operation of the reactor up to'a maximum power level of.157 thermal-megawatts. The base amount of financial protection required under the provisional' license is therefore $150 times 157,000 or $23,550,000. 3 Amount of Financial Protection Required ~ Where: x equals Amount of financial protection in dollars; B equals Base amount of financial protection; P equals Population. factor;. and: x equals B times P; then: x equals $23,550;000 times 1; or x equals $23,550,000-1 f: k i _,. _. -. ~ -.. - ~ _ -, _...,., _.., _. _
Nuclear Energy Liability Insurance Association e 1, c-- The Asias Casvatty and Surety Company Ereployers' Group of Insurance Companies 60 John Street New York 38, N.Y. Tae Fidei;+1 and C.ies tv Company (-. Ha*Hord Accident of New York and indemah Company lasuraace Company of North Arnerica J. Dewey Dorsett unev and Casus'ty Company r Geaeral Maaoger Rovet-Globe lasureace Compan;es pg, ;g y St. Peel Fire and Marine Assistaat Geaeral Monoge, lasurance Compaay The Traveiers lademnity Company James B. Donovan Geaerof Covasef January 18, 1962 Consumers Power Company 212 West Michigan Avenue Jackson, Michigan n Gentlemen ff This is to certify that there has been in effect as of January 15, 1962 a Nuclear Energy Liability Policy (Facility Form) No NF-117 issued to Consumers Power Company which will be subject to an aggregate limit of liability of $1,000,000. As soon as IElLIA is advised of the date on which the named insured will need higher limits, L'ELIA will be prepared to amend the contract to increase the aggregate limit of lia-bility up to $23,550,000. The Advance Premium will be amended to reflect the higher limit. Yours very truly, F. I. Bo an Assistant General Manager FIB:MER ( 1 An Organization of Capital Stoc6 Insurance Companies}}