ML20003B446
| ML20003B446 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 02/09/1981 |
| From: | Howson T GENERAL PUBLIC UTILITIES CORP. |
| To: | Peterson J Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8102120058 | |
| Download: ML20003B446 (61) | |
Text
GPU Service Corporgtlon gra ga
' oo ' rte'= ce P" *4v J
eWme Parsippany. New Jersey 0705,.
201 263-6500 TELEX 136-:82 Writer s Direct Dial Number (201) 263-6061 February 9, 1981 Mr. James Peterson U.S.
Nuclear Regulatory Commission Room 266 - PHIL 7920 Norfolk Avenue Bethesda, Maryland 20014
Dear Mr. Peterson:
Enclosed is our complete response to Additional Financial Informa-tion request Nos. 5 and 6.
Because of the time constraints that you are under regarding the preparation of the NRC financial testimony, I have mailed this copy of our response directly to you.
I have initiated our internal review and filing process.
I would expect that this material will be formally submitted within a few weeks.
If you have any questions regarding this material, please call me or Steve Somich.
Very truly yours r \\ "5
\\CC%
\\ )
T.
G.
Howson 9
TGH/lc 5f Enclosure
'I cc:
J.
G.
Graham 6102120of T d+
GPU Serece Corporat'on es a sucscary of General Pubi;c Utit:es Corporation
GENERAL PUBLIC UTILITIES CORPORATION Metropolitan Edison Company, Pennsylvania Electric Company and Jersey Central Power & Light Company NRC Docket No. 50-289 Three Mile Island Unit No. 1 Restart Proceedinc s
Response to the NRC Staff's Additional Financial Information request No. 5 and No.
6, dated August 11, 1980.
5.
Complete the attached form entitled, " Pro-Forma Statement of Sources and Uses of Funds", on an annual basis for each licensee and GPU, through the year of estimated completion of the cleanup activities of TMI-2.
Note that this state-ment should encompass all necessary construction expenditures including capital expenditures relating to both TMI-l and TMI-2.
Indicate the assumptions upon which'the " Sources and Uses of Funds" statement is based.
These assumptions should include, but are not necessarily limited to, the following: (a) rates of return on average common stock equity, (b) preferred stock dividend rates, (c) long and short-term debt interest rates, (d) market / book ratios for any projected issuances of common stock, (e) common stock dividend payout ratios, (f) target and year by year capital structure, and (g) resultant annual SEC and inden-ture coverages on interest charges and preferred dividend coverages over the period.
Provide a brief explanation of the basis for each assumption.
6.
Provide a list of all necessary generating units, transmis-sion and distribution facilities and general plant projects
i
. t I
to be constructed during the period of clean-up of TM -2, showing the type of facility, net capacity of each generating unit, the estimated capital expenditures for each facility during each of the years involved, and the projected in-service date of each facility.
1
Response
Attached is our complete response to request No. 5 and 6.
The 3
construction schedules requested in No. 6 are included as Appendix A.
This response replaces our previous response to request No. 5 which only provided data for 1981 and 1982.
There are some minor changes on the source and Application of Funds Statements in 1981 and 1982 in this complete response versus our previous response.
i.
,,. -.-- ~,,-.,
-,,-ee.
General Public Utilities 1981-1986 Forecast Introduction The attached forecast is -- as is true of any forecast --
a result of its underlying assumptions.
We have tried to be ex-plicit in detailing our forecast assumptions and we believe these assumptions to be reasonable given today's knowledge of what might happen in the future.
There are, however, several forecast assumption areas tha t require further explanation.
Level of Construction Since the TMI-2 accident, the GPU companies have virtually eliminated new generating station construction programs and have reduced non-nuclear construction programs at existing f acilities.
This forecast assumes that a material increase in our construc-tion program will commence in 1982.
However, this increase --
which includes undertaking new pro]ect initiatives such as the Sayreville coal conversion, the Ontario Hydro Tie and ma]or dis-tribution system improvements -- can and only will be possible given our other assumptions about events such as the return to service and rate base of TMI-1, available credit for the com-panies, a project financing vehicle for the Ontario Hydro Pro-ject, adequate rate relief and the like.
The forecast assump-tions are interdependent so that if one of our assumptions changes (e.g. rate relief) then others (e.g. construction pro-grams) will change as well.
The 46% increase in construction expenditures from 1981 to 1982 (see Appendix A, S265 million to S388 million) will not take place if there is a materially adverse development relative to the assumptions that we have made.
Level of Base Rate Relief The major driving element in any utility's financial fore-cast is the rate relief assumption.
In this forecast we have elected to keep the rate relief assumption conservative by only applying future rate relief that is consistent with the rate making that we have experienced since the accident.
We believe tha.t our needs and f airness to our investors dictate a different level of rate relief and we are so requesting and arguing in our current rate cases.
The level of awards assumed in this forecast merely reflects the application of the rate-making tha t we have experienced since the accident.
Level of Expenditures at TMI-2 Our 1981 budget for TMI-2 has been established at about 560 million which is intended to be both a program that complies with current regulatory agency directives and is consistent with our current financial condition.
A ma3or directive concerning spending at TMI-2 is the September 18, 1980 Pennsylvania PUC order which required Metro-politan Edison to " cease and desist from using any operating revenues for uninsured cleanup and restoration costs."
Our 1981 spending plan is based on complying with this order while con-tinuing to meet our license obligations with the NRC.
(See Dieckamp letter to Ahearne of September 12, 1980 and Ahearne let ter to Dieckamp of January 12, 1981.)
About S40 million of this program is for minimum plant operations to protect the immediate health and saf ety of the public and these expendi-tures are considered to be in compliance with the PUC order.
The remaining S20 million for minor cleanup progress required by NRC and needed to reduce the intermediate and long-term threat to public and worker safety, is currently financed by property insurance receipts.
Our forecast continues this basic spending program, with a normal allowance for inflation, through 1983, when available insurance money will essentially be exhausted.
At that time, the forecast assumes a return to the S40 million per year (1981 dollars) spending level.
The difference between this level of spending and the level of spending required to complete the clean-up of TMI-2 is assumed to be provided from some source (e.g. government or industry) other than customer revenues.
To the extent tnat external f und-ing is not available, customer revenues would ce required on a dollar for dollar basis.
This additional capital and funds requirement is not included in our forecast.
3.
General Public Utilities 1981-1986 Forecast Major Assumptions I.
Costs and Construction Forecast Period 1981 through 1986, 1
TMI Availability TMI-l returns to full power 1/1/82.
TMI-2 out of service throughout the forecast period.
Construction Substantial increase in construction expenditures are included in the forecast starting in 1982. In summary, the follow-ing construction is included:
New Generation - Forked River nuclear pro]ect is acandoned.
Jersey Central's Sayreville oil units are converted to coal at a total cost of S100 million.
Penelec (90%) and Jersey Central (10%) construct Seward-7 coal unit to go in service in 1989.
Major construction expenditures on Seward-7 begin in 1983.
Expenditures start in 1983 for new units that are to go in service in the early 1990's.
Transmission - Jersey Central constructs the Ontario Hydro tie at a cost of $250 million.
Project financing is assumed available for 70% of the Ontario Hydro project.
USDOE Deferral - The USDOE deferral of S39 million TJC - $22 million, ME - Sll million, PN - S6 million) is assumed to be paid in 1981.
The construction expenditures'are summarized on Appendix A.
4.
Energy Costs
- 2 oil escalates 20% in 1981 and 12%
annually thereafter.
TMI-2 Costs As explained in the introduction to the forecast, expenditures at TMI-2 are constrained by various regulatory agency directives.
The resultant expenditure level reflecting these constraints is shown in Appendix B.
5.
General Public Utilities 1981&l982 Forecast Major Assumptions II.
Financinc Assumptions New Capital Bonds 15.5%
Short-Term Debt 15.0%
JC's Project Financing 15.0%
Short-Term Debt The GPU System maintains the Revolving Credit Agreement (RCA) with the following limits:
JCP&L S122 million Met-Ed Met-Ed retains its current credit limit formula:
deferred energy balance plus uranium pledge ($20
~
million) plus accounts receivable pledge (S20-24 million).
When TMI-l returns to service and rate base l
Met-Ed's credit limit re-verts back to its previous level of $105 million.
Penelec S116 million GPU Corp.
S 75 million System Total S292 million GPU Common Stock No new shares are issued.
For financial forecasting purposes, we-GPU Common Dividend have assumed no external common equity sales so that GPU's common equity needs must i
be met through retained earnings.
We have selected our target common equity capital-ization (including short-term debt) percentage as 35% to 36%
With these two assumptions our external dividend becomes those earning in excess if our retained earning needs as defined by our common equity capitalization goal. We have shown such a dividend starting in 1983 l
and continuing throughout the forecast period.
This dividend assumption results in GPU paying out about 25% of its earning in the 1983 to 1986 period.
This dividend assumption and the payment of, or l
lack of payment of, a dividend in the future is not an indication of the prospective divident policy which is reviewed quarterly by the GPU Board of Directors.
4 m
,r--
,--.v----
e.
6.
Subsidiary Dividends 1981-1986: Penelee and JCP&L pay to GPU their earnings to GPU.
Capital Contributions to Subsidiaries 1981-1982: None except for retained earnings of subsidiaries.
1983-1986: As required to support capital projects.
t
7.
General Public Utilities 1981-1986 Forecast Major Assumptions III Ratemaking Energy Clauses The energy clause assumption for Met-Ed and Penelec is intended to reflect our most recent ratemaking decisions which allow for an amortization of our existing deferred energy balance by the end of 1981 and energy clause factors that keep the Pennsylvania subsidiaries current on energy costs in the future periods.
For Jersey Central, the assumption is that their de-ferred energy balance is amortized by the end of 1982 and they are also kept current on their energy costs.
Base Revenues Appendix C details the rat <:naking for 1981 which reflects the assumed disposition of our current base rate cases for all three subsidiaries.
We believe that our assump-tions are consistent with the ratemaking that we have experienced since the TMI-2 accident in that the awards we have assumed do not provide any revenue allowance for TMI-2 or TMI-l when they are not in ser-vice; provides no customer revenues to assist in the clean-up as either an ex-pense or rate base allowance ; and does not change the allowed or earned return on common equity to reflect higher risks.
In 1982, the level of base rate increases for all three' companies h.ve been determined as follows:
Ratemaking provides revenues in the current year sufficient to have produced an earned return in the prior year of approximately 14% on the prior year's common equity de-r l
voted to rate base.
Excluded from rate base are the TMI-2 clean-up costs and, for Jersey Central, the unamortized Forked River investment.
Also excluded as an allowable rate making expense are the O&M costs for TMI-2 that we are charging j
ag ainst income.
In the later years of the forecast period, CWIP is included in ra te.
base as required to support the financing requirements for the high level of New Generation construction.
Appendix D is a graph of average customer cost (revenues divided by Kwh sales) that results from these ratemaking assumptions.
l l
1 --
_,.~.
8.
O General Public Utilities Corporation p'
U. S. NUCLEAR RICUI.ATORT C0!'!CS$10N
- MRIE Fit! ISLANO NrCLEA9 STATICN, UN;* NO. I j
RESLRT PiroCEE0ING - DOCCT % 56-2M D;
A!?ACHMENT FM ITE" NC. 5 STATE?'EN* OF PRC FCR"A SOURCIS AND USES OF Ft"its F0s ytA3+
MODIFICAT!CNS, CLEA!E'P Ar* 3 !r!ES, CONSTRCION EX?EN0!r'JRIS AND CA PITAL $*RUC"'"RE (MILLICNS OF DCLLARS)
YEARS 198!
1982 1983 1984 1985 1986 EXTERNAL FUNC*10NS s -
5 j
Conman Stock 3 -
s 7
Preferred Stack 50 165 M
I66 M
Long-te*m deb-E)
(70) 31 17 (5L) 3P Notes pay la Project Fir.ancing (Catario Hydro) ]
]
]
]
g Contributions f rom 7
~77)
~7I) 7 parent-net Other f unds (describe)(1) 7
~7')
Total External Tunds
$ 'II
$8
$265
$295 3268
$315
~
IN*ERNALLY CENERATED CASH
$2 150 165 147 164 183 Ne t Income Less pref erred dividends (42)
(42)
(41)
(40)
(40)
(39)
If?)
ITi)
III)
TT')
Retained earnings 10 108 3
79 93 ICI cormon dividends 25 3
25 48 3
7 Invest. tax cred. deferred T)
To' 3
7 7
7 Def erred tases 3
165
-176 185
?
E T
1 2
7 7
7 l
Depreciation and amort.
Change in working sapital (2)
])
3 7
7 3
T Def erred Energy Less: ATDC (18)
(25)
(34)
(32)
(29)
(32)
Total Internal Funds III M
E T8I M
M TOTAL TUNOS
$]
$]
$IiI 3]
$]
sy CONSTRUC* ION EXPEN0! URES 11 20 21 23 TM1-2 Cleanup M -1 Modifications (*)
"TJ U
Other Construction Exp.
I37 3e3 se5 553 5+6
$M SIEI SW STTI SI57
$*II TOTAL CTHER CAP!TAL REQUIRE *EN*S Redemptien of Maturing 87 123 55 10 22 97
~
~
~
Bonds
~
Acquisition of Sonds
~
~
4 8
8 8
9 9
for Sinking Funds z
Miscellaneous Require-sents (detail) (3) 6 47 8
8 8
8 TOTAL CAPITAL REQUIREMENTS
$267
$440
$589
$676
$727
$805 CAPITAL STRUC"UPE ($ & :)
$2!57 53: $2166 52* $2252 52: s2440 53: $2605 53: $2814 54:
510 12 50*
62 500 !!
496 11 649 10 663 9
Long-term deot Preferred stock 1*2=
35 1532 36 1611 37 1690 3e 1783 37*
1990 37 TOTAL
$=C91 100:
S.2C2 100: $*3o3 100 $.626 10C* Seen 100: 55187 10C*
Common equity Short-term Debt
$ 1, 3,5 34 5 95
$112
$ 61
$ 99 COVERACES Not Aeolicable for Consolidated interest Preferred Stock (1) Temporary Investments
(=)
includes Paysent of Accrued Construction Liabilities of $56 million, of which 00E is $39 million.
d) Exclusive of AFDC
(*)
Consistent with data request No. 2 (5) DeSenture and Pref erred Stock Sinking Funds and CPU's $39 million Ters Loan in 1981
_., ~.
9.
Jersey Central Power & Light U. S. NUCLEAA RE00LATORY COMM!$SION Pg p,
- HREE M!LE ISLAM NUCLEAR STATION, '.N!? NO. I b 0' b1
}
a i
RESTART PROCEIDINC - DOCKET No. 50-299 ATTACH.Ehi FOR IT!M NO. 5 STATEPIhi 0F PRO FOPS SOURCES AND USES OF FUNDS FOR PLANT MODIFICA* IONS, CLEANUP ACT!t!*IES, CONSTRUCTION EXPENDI*URES AND C4PITAL STRUC"'JRE (MILLIONS OF DCLLARS)
YEARt 1981 1982 1983 1964 1985 1986 EMEPNAL FUNC* IONS Common Stock S,, -
3 -
5 S -
Pref erred Stock Long-term debt 7
T T
90 125 I66 Notes payable 10 (51)
- 6 te)
(10)
Cor.tributions from
~
~
~
~~I6 Projects Financing (Ont. Hydro) 30 50
~~""
~
30 30 30 40 pa re n t-ne t Other f unds (describe)(I)
Total External Funds
$2
$2
$5 33
$3 INTERNALLY CENERA*FD CASH
.se t income 30 11 67 74 77 60 Less:
preferred dividends (18)
(18)
(17)
(17)
(17)
(16) common dividends (12)
(53)
(e9)
(So)
( 58)
(62)
Retained earnings 1
1 2
2 Deferred taxes T
T 7
"T6 "Io" T
Invest. tax cred. deferred 7)
T T
T T
T Depreciation and amort.
6e e8 72 78 115
.125 Deferred Energy 7
7 7
7 7
7 Change in working capit21(2)
T)
T T
T T
T Less: ATDC (11)
(15)
(22)
(16)
(14)
(9)
Total Internal Funds III ITE IIT T5I E
E TOTAL FUNDS
$N
$2
$3 CONS *RUC* ION EXPENDITURES (3)
TMI-2 Cleanup S 3 S 5 3 5 3 6 IMI-1 Modifications (')
7 Ot her Construction Exp.
117 193 251 323 286 271 TOTAL SM SM SE OTHER CAP!TAL REOUIREMEhiS Recesstion of Maturing Bonds 5
5 35 73 29
~
Acquisition of Bondr
~
~
~
~
~
for Sinking Funds 4
4 4
5 5
Miscellaneous Require-ments (detail)L5J 3
5 5
5 5
. 5 TOTAL CAPITAL REQUIREMENTS SQ SE
$,{# j,
$21],
$111 CAP!TAL STRUC*URE (S & %)
Long-ters cent
$ 883 50
$ 952 !2: $ 995 53 $1144 55% $1188 55: $1252 56:
Pref erred stock 202 11 199 t1 197 10 19e 9
192 0
189 S
Co=mion equity 671 39 671 37 102 31 233 36 765 36 807 36 T0*AL
$1756 !MI $,Lidd jf,G S M I S M % $ h % $2248 IMI Short-term Debt
. $ 67
$ 61
$ 55
$ 59 s 29 COVERACES Interest 1.76 2.45 2.09 2.01 2.05 1.98 Preferred Stock 1.09 1.51 G
1.29 1.31 1.32 1 Temocrary Investments includes Pavment of Acerued Construction Liabilities of $41 million, of which DCE is $22 million i~ Exclustve of AFD0 Consistent with data request No. 2 5 Debesture and Preferred Stock Sinking Fund 6 Accrued interest on Project Financing included
10.
Metropolitan Edison Company U. S. NUCLEAR REC',TATCRY CO M SSION
- HR!! MILE ISLAND N"CLEAD S*ATION. UNIT NO. Qh RESTAR* P90CEE0tNC - DOCKET No. So-2e9 Q
A* TACH" INT FOR !*EM NC. 5 ST;.T!w!N* Cr PRO TORMA SOURCES AND USES OF TUNDS FOR PLAN
- MODIFICA* IONS, CLEAhiP ACTIVITIES, CONSTRUCTION EXPENDITLPES ANO CAPITAL STRUC*UPI (MILLIcNS OF 00LLARs)
YEARS 1981 1982 Ige 3 19A4 1985 1986 EX*ERNAL FUNC'!ONS S -
Common Stock 7
Preferred Stock 50 15 7
Long-term debt Notes payable
)
)
[)
]
h)
]
Contributions froe 15 parent-net 7)
Other f unds (describe)(1)
Total External Funds s (4)
$ (5) 3 45 s 20
$ 51
$ 70 IN*!RNALLY CENEPATED CASH Aet Income (2) 31 34 23 36 43 Lass:
preferred dividends (10)
(10)
(10)
(10)
(10)
(10) common dividends Retained earnings III) 21 26 13 26 33 TII) 7 7
T T
T Lef erred taxes 5
7 16 16 (5)
T Invest. tax cred. deferred 6
T Depreciation and amort.
T T
7 T) 7 7
7 7
Deferred Energy f2)
@)
T T
'TI T
T Change in working capital Lesst AFDC (4)
(6)
(5)
(5)
(6)
(10)
Total Internal *unds T
T T
T T5T TIT TOTE FUND?
$ 63
$ 81
$.160
$100
$156 3199 CCNS*RCCTION EXPENDI*CPES(3)
$ 5
$ 10 TMI-2 Cleanup 21-1 Modificationaf')
7 T
T M
~T 9
Other C)nstruction Exp.
3 T
TCTAL
$ 61
$ 71 3 88 ST
$106
$.17 4 C*HER CAPITAL P!0UIREMEN*$
Redemption of Maturing 8
50 15 50 8
Bonds Acquisition of Bonds f or Sinking Ft nds 2
2 2
2 2
2 Miscellaneous Require-sents (detail)
TOTAL CAPITAL RIQUIRIMENTS
$ 43 5 81'
$140
$100
$156
$189 CAPITAL STRUC*URE ($ & %)
Long-ters desc
$ $42 52: 3 532 51% $ 530 50% $ $28 49: 5 551 48: $ 621 50:
Preferred stock 10 13 160 13 160 13 10 13 160 12 10 11 Common equity 35e 35 377 36 400 37 613 38 656
+0 687 39 TOTAL
$1038 100% $10 9 100% $10iG iGO: $1081 100% $11 5 100% $12 8 100:
Short-tern Debt (5)
$ 44 3 39 3 3A s 39 s-s -
COVERACES
.93 2:42 2.35 1.97 2.09 1.98 Preferred Stock
.83 1.39 1.J5 1.19 1.29
'IT Interest 1 Tesocrary Investments 1 1981 includes Payment of DOE Liability of $11 million 3 ExCiusive of AfDC 4 Consistent with data request No. 2 Excludes $13 millions bonds assumed to be paid off in 1985 and 1986 5
_e 11.
Pennsylvania Electric Company U. 5. NUCLEAR RECUT.ATORY COMMISSION TNREE Mit! ISLAND Mt?CI. EAR STATION. UNIT NO. !
[
RESTART PROCEEDINC - DOCY!* No. 50-299 0
h AT*AC'4 MENT FOR IMM No. 5 STAT!*ENT OF PRO FCRMA SOURCES AND USES OF FUNDS FOR PLAN *
"CDIFICAT!CNS, CLEANUP ACTIVI!!!S, CGNSTRUC* ION EXPENDLTURES 4?.D CAPITAL S*RUC*URE
(.=ILLIGNS OF DOLLAAS)
YEARS 1981 1982 1983 1984 1985 19A6 EX*ERNAL FUNC*t0NS 3 -
S Qreon Stock Preferred Stock Long-ters debt 00 100 100 100 7
7 M) 7 H) 3 Notes payable Contributions from 40 30 20 40 parent-net Other f unds (describe)(1)
"TF
~TT Total External Funds 32 33 s]
$3 33 33 IN*!RNALLY OENERAT!D CASM Net Income 39 51 46 53 54 65 Lesst preferred dividends (14)
(14)
(13)
(13)
(13)
(12) common dividends
@)
I'E)
M)
M)
M)
M)
Retained earnings 3
1 2
2 L
t Oeferred taxes 10 9
~II 7
7 T
Invest. tax cred. deferred 7
5 9
13 to 9
Depreciation and amort.
52 35 58 62 65 69 Ceferred Energy 7
7 Change in working capital (2) 7)
7 TIT) 7)
7 7
Less: ATDC (3)
(4)
"IT)
(lt)
(9)
(13)
Toeal In erna1 Tunds 7
7 "TL
~N
~TI "T!
TOTAL f*JNDS 33
$3
$3 SE
$3 SM CONSTRUC :CN EXPENDI*t'RES(3)
D.I-2 Cleanup
$ 3
$ 5
$ 5
$ 6 M -1 Madificatione(')
7 7
7 7
Cther Construction Exp.
4 99 13t 157 ggy
- 7g ICIA
$3 33
$3 53
$3 SE C*MER CAPITAL RECCIREMEN*S itece9otion of Maturing Bo nds 5
9 12 57 13 Acquisition of Sonds
~
~
~
~
~
~
for Sinking Funds 2
2 2
2 2
2 Miscellaneous Require-sents (deta11)(5) 3 3
3 3
3 3
TOTE CAPITAL REQUIREMENTS
$,,4,j, 3,Q1 SQ
$,{ 4,J,
$g CAPI *AL STRUC-'JRE f 5 6 %)
Long-ters desc 3 681 54: 5 469 53: 5 715 53: 3 756 $!.: $ 454 56 $ 914 57' Preferred stock ted 13 -
195 13 193 12 ISO 11 157 13 15.
9 Common equity
- 20 33
- 21 3
- e3 35 495 35 Sie 34 557 M
- 0TAL SM SM
$t341 !^0% S M S M
- St+.5 PO:
Short-ters Oebt 3 to 3 18 5 2
$ 70 l
COVERACES Laterest 2.13 2.St 2.23 2.26 2.05 ' ~
2.21 Preferred Stock L.26 G
t.33 3
1.30 1.33 1 Temporary Investments 2 1981 Includes Payment of DCE Liability of $6 million 3 Exclusive of AC C Consistent etch data request No. 2
$ Osbenture and Preferred St'ock $1rkina Fund
CENERAL PullLIC UTil.lTIES System Constructior. Forecast
($ ililTions) includes AFC Capacity In-Service Tyg( t )
OlW)
Date 1981 1982 1983 1984 1985 1986 New Generation Sayreville Coal Conversion (100%-JC)(2)
C 1985 2
8 20 20 Raystown (100%-PN) 11 2
1985 1
3 5
6 3
Seward-7 (90%-PN, 10%-J C)
C 625 1989 1
2 25 40 74 146 Coal #1 ( 60 %-ilE, 30%-JC, 10%-PN)
C 625 1991 2
5 10 30 48 Coal #2 (50%-JC, ' 40%-PN, 10%-ilE)
C t:25 1993 2
6 11 Pumped Storage (60%-JC, 40%-ilE)
PS 850 1994 2
3 5
24 Other 5
1 5
Total 9
15 57 81 119 234 Existing Ceneration Oyster Creek 36 45 56 62 142 62 THI-l 20 38 40 17 25 36 Other 40 52 53 53 42 69 Total Generation 105 150 206 213 328 401 Transmission Ontario llydro (100%-JC)
F 1000 1985 3
41 66 103 All Other Transmission 42 39 59 59 43 52 Dist ri bu t ion 85 119 128 150 158 165 Nuclear Fuel 22 31 33 54 60 117 General 8
8
_7 6
_6
_7 sa co Total 265 388 499 585 595 742
~lt OX (1) C-Coa l, ll-llyd ro, PS-Pumped Storage, F-Firm Purchase
"' p A
(2) Assumes 50% of cost paid by Goverinnent
i JERSEY CENTRAL POWER & LICllT C0!!PANY Construction Forecast
($ Millions)
In-Service Date 1981 1982 1983 1984 1985 1986 New Generation Sayreville Coal Conversion 1985 2
8 20 20 Seward-7 1989 4
8 12 Coal #1 1991 1
I 3
9 13 Coal #2 1993 1
3 5
Pumped Storage 1994 1
2 3
14 Otlie r 5
1 4
Total 7
9 22 30 24 48 Existing Generation Oyster Creek 36 45 56 62 142 62 THI-I 5
10 10 4
6 9
other 4
3 5
4 2
11 Total Generation 52 67 93 100 174 110 Transmission Ontario llydro 1985 3
41 66 103 All other 31 18 27 30 13 22 Distribution 34 54 58 73 77 78 Nuclear Fuel 8
24 27 3I 34 47 my Gene ra l 3
_4 2
2 2
$, Ed 3
,n Total Construction 131 208 273 339 30 28,0 up 80 ox y
J.
l l
HETROPOI,ITAN EI)1 SON CollPANY Construction Forecast
($ itillions)
In-Service Date 1981 1982 1983 1984 1985 1986 l
New Generation l
Coal #1 1991 1
3 6
18 30 j
Coal #2 1993 1
I l
Pumped Storage 1994 1
I 2
to Other 1
Total 1
4 7
21 42 l
l l
l Existing Generation l
TH I-l 10 19 20 9
13 18 other 4
11 8
6 4
24 Total Generation 14 31 32 22 38 84 Transmission 3
8 15 9
to 8
Dist rilantion 18 31 34 30 32 37 l
Nuclear Fuel 9
5 4
15 17 47 Gene ral I
_ 2_
3 2
2 2
Total Construction 45 77 88 78 99 178 v 3s Ot 'O dl 'd (D (D D
us tt g 4.
OX t%
>e Ja
~
PENNSYINANI A ELECTRIC COMPANY Construction Forecast
($ Hillions)
In-Se rv i ce s.
Date 1981 1982 1983 1984 1985 1986 New Generation Raystown 1985 1
3 5
6 3
Sewa rd-7 1989 1
2 25 36 66 134 Coal #1 1991 1
I 3
5 Coal #2 1993 1
2 5
otlier Total 2
5 31 44 74 144 Existing Generation i
1N I-I 5
9 10 4
6 9
otlier 32 38 40 43 36 34 Total Generation 39 52 81 91 116 187 4
Transmission 8
13 17 20 20 22 3
Distribution 33 34 36 47 49 50 4
g N. clear Fuel 5
2 2
8 9
23 Cenera l 4
2 2
2 2
2 Total Construction l9 103 138 168 196 J8,4, '
y,ge
<a m 2 (D
- 3
.e. (L l *-
eY J*
4=
4 4
/
AQ9p 0
//
/
TEST TARGET (MT-3) l lgmnul@ HE l.0 u
['a lilM l.8
'~
1.25 1.4 1.6 4
6" j
l l
,5 %
+ //p D/
>/,
v 4
[ '
N#
'4 (
j
. TEST TARGET (MT-3) 1.0
'E m El 55 B=aa
^
1 m m
=
l,l h.., bb I.25 I.4 1.6 c
=
A*r%>,,
/+4%
0if h///
'tA<?>
&p
Appendix 3 GENERAL PUBLIC UTILITIES TMI-2 Expenditure Forecast (S Millions)
TMI-2 Deferrals 1981 1982 1983 1984 1985 1986 Deferred Costs S 42 S 45 S 48 S 23 S 12 1 S 23 Insurance Proceeds (41)
(44)
(37)
(3)
Net Deferred Cost S7 S7 S TI S 76 S TI S TI O&M Charced to Expense S 19 S 18
_S 19 S 21 S 22-S 24 Note:
All ccsts are allocated among the GPU subsidiaries in pro-portion to their TMI-2 ownership (JCP&L and Penelec - 25%
each, Met-Ed - 50%).
Appendix C GENERAL PUBLIC UTILITIES i
Assumed Dispositior of Current Base Rate Cases In 1981 (S Millions)
Last allowed ROE Amortization on "re cognized" Revenues for Rate Base the Forked InvestmenkI River Investment Base Revenue Increases Jersey Central I2I S27 Annual Award S
Ef fective Date March Met-Ed Annual Award S35 Effective Date May Penelec Annual Award
$40 Ef f ective Da te May d
(1)
Excludes all capital and operating costs associated with the following investments:
- TMI-l (until 1/1/82)
- TMI-2
- Deferred TMI clean-up costs
- Unamortized Forked River investment (2)
Jersey Central interim award of $60 million in June 1980 assumed to be retained.
'P*F' f'Y&
V*'IU*MT
'T""
N'9-F-"-*
=BTEY P
' ' 'W" P'$"*"'-
-=M
+ -
q g-4g7-
- 7--
w f"
?
IYf I*#
T
(
JCPLLs AVERACE CU$10f4R C05T IN CENTS /KWH FET-EDs AVERAGE CUSTOMER COST IN CEtti$sFUD4 52( ;
g g
g g
7 12 g
y g
g g
g g
at It C10 C 10 kg g
~-
r.
r, 5
5 P
P..
[N[ggy p[U[mgg s
EffERCV REUfHUES g......
y g
g 4
y 3
3 -....
2 BASE 40/0 EttERCY) a g
I I
I I
I I
b-0I I
d
- I I
I L
O lett 1981 1984 1983 1984 1985 1986 t/01 1981 1982 1983 1984 8985 1986 PENELECs AVERAGE CUSTON R COST IN CENTS /KWH 12 g
y y
g g
q-18 Cmpimnil Annual Growt h Ha t e C lO I
g Jan. 1981 Hid-1983 Jan. 1981 N
0 T ttid-19H3 To Hid-1986 To Hitt-l'tH6 5
~
~
P J Cl' & t.
4.3%
5.1%
4.91 E 6 Me t - nl 0.6%
0.8%
5.01 R
S Imnelec 5.0%
30.8%
0.1%
K 4
EHERCV ret /ENUES 3,
3 _,.........
,y 8
BASE (W/0 ENERCY)
~
3 1
O*
O t<OS 1988 8984 1983 8984 1985 1986 t)
GENERAL PUBLIC UTILITIES CORPORATION Metropolitan Edison Cc=pany, Pennsylvania Electric Company and Jersey Central Power & Light Company NRC Docket No. 50-289 Three Mile Island Unit No. 1 Restart Proceedin Response to the NRC Staff's Additional Financial Information request No. 5 and No.
6, dated August 11, 1980.
5.
Complete the attached form entitled, " Pro-Forma Statement of Sources and Uses of Funds", on an annual basis for each licensee and GPU, through the year of estimated completion of the cleanup activities of TMI-2.
Note that this state-ment should encompass all necessary construction expenditures including capital expenditures relating to both TMI-l and TMI-2.
Indicate the assumptions upon which the " Sources and Uses of Funds" statement is based.
These assumptions should include, but are not necessarily limited to, the following: (a) rates of return on average common stock equity, (b) preferred stock dividend rates, (c) long and short-term debt interest rates, (d) market / book ratios for any projected issuances of common stock, (e) common stock dividend payout ratios, (f) target and year by year capital structure, and (g) resultant annual SEC and inden-l ture coverages on interest charges and preferred dividend coverages over the period.
Provide a brief explanation of 1
the basis for each assumption.
l 6.
Provide a list of al1~ nee [ssary generating units, transmis-f sion and distribution facilities and general plant projects I
-.m
_.. _, _ - -. ~. _,.
. to be constructed during the period of clean-up of TMI-2, showing the type of facility, net capacity of each ge-. rating unit, the estimated capital expenditures for each facility during each of the years involved, and the projected in-service date of each facility.
Response
Attached is our complete response to request No. 5 and 6.
The construction schedules requested in No. 6 are included as Appendix A.
This response replaces our previous response to request No. 5 which only provided data for 1981 and 1982.
There are some minor changes on the Source and Application of Funds Statements in 1981 and 1982 in this complete response versus our previous response.
3 5
4 T
I i
i General Public Utiliti-1981-1986 Forecast Introduction The attached forecast is -- as is true of any forecast a result of its underlying assumptions.
We have tried to be ex-plicit in detailing our forecast assumptions and we believe these assumptions to be reasonable given today's knowledge of what might happen in the future.
Ther e are, however, several forecast assumption areas that require further explanation.
Level of Construction Since the TMI-2 accident, the GPU companies have virtually eliminated new generating station construction programs and have reduced non-nuclear construction programs at existing facilities.
This forecast assumes that a material increase in our construc-tion program will commence in 1982.
However, this increase --
waich includes undertaking new project initiatives such as the Sayreville coal conversion, the Ontario Hydro Tie and ma]or dis-tribution system improvements -- can and only will be possible 4
given our other assumptions about events such as the return to service and rate base of TMI-1, available credit for the com-panies, a pro 3ect financing vehicle for the Ontario Hydro Pro-Ject, adequate rate relief and the like.
The forecast assump-tions are interdependent so that if one of our assumptions changes (e.g. rate relief) then others (e.g. construction pro-grams) will change as well.
The 46% increase in construction expenditures from 1981 to 1982 (see Appendix A, S265 million to 5338 million) will not take place if there is a materially adverse development relative to the assumptions that we have made.
Level of Base Rate Relief The major driving element in any utility's financial fore-cast is the rate relief assumption.
In this forecast we have elected to keep the rate relief assumption conservative by only applying f uture rate relief that is consistent with the rate making that we have experienced since the accident.
We believe that our needs and fairness to our investors dictate a different level of rate relief and we are so requesting and arguing in our current rate cases.
The level of awards assumed in this forecast merely reflects the application of the rate-making that we have experienced since the accident.
Level of Expenditures at TMI-2 Our 1981 budget for TMI-2 has been established at about-560 million which is intended to be both a program that ccmplies with current regulatory agency directives and is consistent with cur-current financial condition.
~..
A ma]or directive concerning spending at TMI-2 is the September 18, 1980 Pennsylvania PUC order which required Metro-politan Edison to " cease and desis' from using any operating revenues for uninsured cleanup and estoration costs."
Our 1981 spending plan is based on complying with this order wnile con-tinuing to meet our license obligat..,ns with the NRC.
(See Dieckamp letter to Ahearne of September 12, 1960 and Ahearne letter to Dieckamp of January 12, 1981.)
About 540 million of this program is for minimum plant operations to protect the immediate health and saf ety of the public and these expendi-tures are considered to be in compliance with the PUC order.
The remaining S20 million for minor cleanup progress required by NRC and needed to reduce the intermediate and long-term threat to public and worker safety, is currently financed by property insurance receipts.
Our forecast continues this basic spending program, with a normal allowance for inflation, through 1983, when available insurance money will essentially be exhausted.
At that time, the forecast assumes a return to the S40 million per year (1981 dollars) spending level.
The difference between this level of spending and the level of spending required to complete the clean-up of TMI-2 is assumed to be provided from some source (e.g. government or industry) other than customer revenues.
To the extent that external fund-ing is not available, customer revenues would be required on a dollar for dollar basis.
This additional capital and funds requirement is not included in our forecast.
W w-cy 9
=
=e-ym q
^
w
3.
General Public Utilities 1981-1986 Forecast Mayor Assumptions I.
Costs and Construction Forecast Period 1981 through 1986.
TMI Availability TMI-l returns to full power 1/1/82.
TMI-2 out of service throughout the forecast period.
Construction Substantial increase in construction expenditures are ir.cluded in the forecast starting in 1982. In summary, the follow-ing construction is included:
New Generation - Forked River nuclear pro]ect is acandoned.
Jersey Central's Sayreville oil units are converted to coal at a total cost of S100 million.
Penel.-
(90%) and Jersey Central (10%) construct Seward-7 coal unit to go in service in 1989.
Ma3or construction expenditures on Seward-7 begin in 1983.
Expenditures start in 1983 for new units that are to go in service in the early 1990's.
Transmission - Jersey Central constructs the Ontarlo Hydro tie at a cost of S250 million.
Pro]ect financing is assumed available for 70% of the Ontario Hydro pro]ect.
USDOE Deferral - The USDOE deferral of 539 million (JC - S22 million, ME - $11 million, PN - S6 million) is assumed to be paid in 1981.
The construction expenditures are summarized on Appendix A.
i f
i 4
k i
4.
Energy Costs
- 2 oil escalates 20% in 1981 and 12%
annually thereafter.
TMI-2 Costs As explained in the introduction to the forecast, expenditures at TMI-2 are constrained by various regulatory agency directives.
The resultant expenditure level reflecting these constraints is shown in Appendix 3.
t 5.
General Public Utilit.es 1981&l982 Forecast Major Assumptions II.
Financing Assumptions New Capital Bonds 15.5%
Short-Term Debt 15.0%
JC's Project Financing 15.0%
Short-Term Debt The GPU System maintains the Revolving Credit Agreement (RCA) with the following limits:
JCP&L
$122 million Met-Ed Met-Ed retains its current credit limit formula:
deferred energy balance plus uranium pledge (S20 million) plus accounts receivable pledge (S20-24 million).
When TMI-l returns to service and rate base Met-Ed's credit limit re-verts back to its previous level of S105 million.
Penelec S116 million GPU Corp.
S 75 million System Total 5292 million No new shares are issued.
GPU Common Stock GPU Common Dividend For financial forecasting purposes, we have assumed no external common equity sales so that GPU's common equity needs must be met through retained earnings.
We have selected our target common equity capital-ization (including short-term debt) percentage as 35% to 36%.
With these two assumptions our external dividend becomes those earning in excess if our retained earning needs as defined by our common equity capitalization goal. lie have shown such a dividend starting in 1983 and continuing throughout the forecast period.
This dividend assumption results in GPU paying out about 25% of its i
' earning in the 1983 to 1986 period.
This j
dividend assumption and the payment of, or lack of payment of, a dividend in the future is not an indication of the prospective divident policy which is reviewed quarterly by the GPU Board of Directors.
6.
Subsidiary Dividends to GPU 1981-1986: Penelee and JCP&L pay their earnings to GPU.
Capital Contributions to Subsidiaries 1981-1982: None except for retained earnings of subsidiaries.
1983-1986: As required to support capital projects.
7.
General Public Utilities 1981-1986 Forecast Major Assumptions III Ratemaking Energy Clauses The energy clause assumption for Met-Ed and Penelee is intended to reflect our most recent ratemaking decisions which allow for an amortization of our existing deferred energy balance by the end of 1981 and energy clause factors that keep the Pennsylvania subsidiaries current on energy costs in tha future periods.
For Jersey Central, the assumption is that their de-ferred energy balance is amortized by the end of 1982 and they are also kept current on their energy costs.
Base Revenues Appendix C details the ratemaking for 1981 which reflects the assumed disposition of our current base rate cases for all thre e subsidiaries.
We believe tha t our assun.;-
tions are consistent with' the ratemaking that we have experienced since the TMI-2 accident in that the awards we have assumed do not provide any revenue allowance for TMI-2 or TMI-l when they are not in ser-vice; provides no customer revenues to assist in the clean-up as either an ex-pense or rate base allowance; and dets not change the allowed or earned return on common equity to reflect higher risks.
In 1982, the level of base rate increases for all three companies have been determined as follows:
Ratemaking provides revenues in the current year sufficient to have produced an earned return in the prior year of approximately 14% on the prior year's common equity de-voted to rate base.
Excluded f rom rate base are the TMI-2 clean-up costs and, for f
i Jersey Central, the unamortized Forked River investment.
Also excluded as an allowable rate making expense are the j
O&M costs for TMI-2 that we are charging i
j against income.
In the later years of the forecast period, CWIP is included in rate l
base as required to support the financing l
requirements for the high level of New Generation construction.
Appendix D is a.
graph of average customer cost (revenues divided by Kwh sales) that results from these ratemaking assumptions.
.--._m..
,,.-.-,.....,~c.-
.. _ -, _ - ~.,....,...,
~_
4 8.
\\ s S
D I
[)
Ceneral Public Utilities Corporation 1
U. S. NUCLEAR RICULA* CRY C0"?.'SS uN 9
"NRE! wile ISLANS VUCLEAR STATION, UNIT No. I U
RESTART PRCCEED;'.C - DOCF1.T No. 5e-2 5 ATi'ACHMENT FOR ITE* NO. 5 S*A*E32N* OF PRO FOPwA Sot'RCES AND USES OF FUNOS FOR PLA':*
- 00!T! CATIONS, CLEASCP ACTIVI*IES, CCNSTRUC*!0N EXPEN0!*LRES ANO CAPI *AL STRUC*URE (MILLIONS OF DOLLARS)
YEARS 108!
1992 1953 1994 1985 1996 EXT!RNAL FUNCTIONS Common Stock S -
Pref erred Stock Long-term debt 50 la5 205 300 37I Notes pavable
(!?)
(70) 31 17 (51) 38
~~I
~73 "TT au Project ' Financing (Ontario Hydro)
Contributions f rom T)
Y) 7
=
parent-ner Cther fu,de (describe)UI 3
T) 7 Tet-External Tunds 5 16
$ e
$245
$295
$248
$315 IN*IRNALLY CINER.A*ED CASH 52 155 145 147 164 183 Net income Less:
(42)
(42)
(41)
(&C)
(40)
(39) preferred dividends 425)
(28)
(31)
I37) common dividends Retained earnings 10 108 79 79 93 107
~7 "IT 5
Deferred taxes 25 34 25 8
invest. tax cred deferred 7)
"Te~
3 7
7 7
Depreciation and amort.
157 le5 174
. 185 III II3 7
7 7
7 7
7
])
Leferred Energy Change in working capital C)
M) 3 7
7 7
(32 Less: AFDC (18)
(25)
(3.)
(32)
(29)
~TI UI E
LIT M
M 2
Total internal Funds
$ 27
$855 7
TOTAL TUND3 5267
$.40
$589
$676
}
CCNS*RUC* CN EXPENDI*URES TM1-2 Cleanup 20 21 23 TM1-1 Modifier.tions(')
~I3 Other Construction Exp.
I37 363 465 553 56e 710
$N
$Ie7
$M
$.5.Ti
$T87
$737 70TAL C*MEP CAP!TAL PEcrIREMINTS Recemptten of naturing 10 22 97 87 123 55 Bonds Acquisition of Bonds 4
8 8
8 9
9 f or Sinking Funds Miscellaneous Require-sents (detail) (3) 6 47 8
8 8
$267
$440
$589
$676
$727
$805 CAPITAL STR"CTt"RE ($ 4 %)
Long-term debt
$2157 53: $2166 52: $2252 _52 $2440 53: $2605 53: $2814 54:
Preferred stock 510 12 50 12 500 11
.96 11
- 89 10 683 9
1 26 35 1532 36 lell ~TY le90 36 1783 37: 1890 37 Common equity T0*AL
$4091 10C:
$.202 100: $.3t3 110: 5 62* 160: $4877 100: $5187 1002 l
Short-tere Debt
$135 5 64
$ 95 5112
$ 61
$ 99 1
^
COVE RACES Not Asclicable f or Consolidated
' int e re s t Preferred Stock (1) Temporary Investments (2) includes Payment of Ac.-"ed Construction Liabilities of $56 million, of which DCE is $39 million.
(3) Exclusive of AFDC C')
Coesistent with data request No. 2 (5) Oe5enture and Pref erred Stock Sinking runds and CPU's $39 million Term Loan in 1992 f
t, 9-Dk Q
Jersey Central Power & Light Q
C. S. NUCLEAR REC;'LATORY COMMISSION THREE WILE ISLANO NUCLEAR STATION, UNIT NO. 1 RES* ART PROCEEDINC - DCCKE* No. 50-299 AT*ACHME'.T FOR !*EM NO. 5 STA*EMEN" 0F PRO FORMA SO M TES AND USES OF FUNDS FOR PLAN
- WCOIFICATIONS, CLEANUP ACTIV!!!ES, CONSTRUCTION EXPENDI*LRES AND CAPITAL !*RUC*URE (MILLICNS OF DOLLARS)
'ilAR S 1981 1982 1983 1984 1995 198A EX*!RNAL FUNC*!CNS Comon Stock s-Preferred Stock Long-term debt 50 35 T
B TU Notes payable 10 (51) 66 (6) f30)
=
Projects Financing (Ont. Hydro) 7 3
3 80
~
~
~
~
~
~
Contributions f rom parent net 30 30 30 40 Other funds (describe)(1)
Total External Funds
$2
$2 15
$3
$3 IN*ERNALLY CINERATES CASM t.e t income 30 71 67 74 77 80 9ass:
preferred d:didends (18)
(18)
M)
(17)
(17)
(16) common dividends (12)
(53)
(69)
(56)
(58)
(62)
Retained earnings 1
1 2
2 Deferred taxes T
3 7
3 Y
T Invest. tax cred. deferred Y)
T T
32 2e 3
De st seiation and amort.
66 6B 72 78 115 125 feferred Energy 7
Y 7
7 7
7 Change in working capitalII)
T) 3 T
~II Y
7 Less: AF;C (11)
(15)
(22)
(16)
(14)
(9, Total internal Funds II8 TT8 I37 I5I IIT 736 TOTAL FUNOS
$2
$2
$E
$3 CONSTRUC*ICN EXPEN0!TURE$(3)
TMI-2 Cleanup 3 3
$ 5 5 5 6
a TMI-! Modifications ('}
7 Other Construction Exa.
117 193 251 323 286 271 TOTAL SM
$j,5,),
$lh
$2;8, SM SE CU!!P CAP!TAL P.EOUIRE.WENTS liedemption of Maturing Bonds 5
5 35 15 73 29 Acquisition of Bonds f or Sinking Funds 4
4 4
5 5
Miscellaneous Reguire-ments (detail)t5) 3 5
5 5
5 5
T0*AL CAPITAL REQUIRE.WENTS S,!,18
$M SM
$M
$M CAPITAL S*RUC*URE ($ & :)
.one-term debt
$ 883 50 1 952 52: $ 995 53: 51144 55: 5118A 55: $1252 56%
Pref erred stock 202 11 199 11 197 10 19.
9 142 9
189 8
Common equity 671 39 6f1 3) 702 37 733 36 7e5 36 807 36 TOTAL SM: $M: 51896 IV: $ h % $ h t $22ea 100:
~' 6i~ ^
$ 55
$ 59
$ 29 Short-ters Debt
$ 67
$ ts s
COVERACES Inter t 1.76 2.45 2.09 2.01 2.05 t.9e Preferred Stock 1.09 1.51 1.36 1.29 1.31 1.32 1 Tesporary Investoents 2 Includes Payment of Accrued Construction Liabili*ies of $41 million, of wnich DOE is 322 million 3 Exclusive of AFDC 4 Consistent with data request No. 2 3
Cebenture and Preferred Stock Sinking Fund 6 Accrued interest on Project Financing included
10.
h Metropolitan Edison Company J
$)
\\
U. S. N" CLEAR F.E00LA*0RT COMMi$$10N D
THREE MILE ISLAND NUCLEAR S*A*!ON, UN!* NO. I h
RESTART PRCc!E0!NO - 00CKET NO. 50-299 ATTACMMINT FOR ITEM No. 5 STATEE N* OF 'RO 70R.w.A SOURCES ANO USES Of FUN 05 FOR PLAP*
MOO!TICA* IONS, CLEA.NJF ACTIVir!ES, CONS RUCTICN EXPEN0!TCPES ANO CAP!*AL STRUCT"RE (MILLICNS OF DCLLARS)
YEARS 19 _81 1982 198%
1984 1985 1986 EXTERN AL FUNCTIONS Common Stoca S -
S -
5 -
Preferred Stoca
_ g-50 15 75
<5 Long-term debt Notes payable
(.)
(5)
(5) 5 (39)
Contributions f rom parent-net Other f unds (describe)(1) 7)
Total External Funds 5 f.)
$ (5)
S 65
$ 20 s 51
$ 70 ICIRNALLY OENERATIO CAsii Net Income (2) 31 34 23 36 43 Less:
preferred dividends (1%)
(10)
(10)
(10)
(10)
(10) cocmon dividends Retained earnings (12) 21 2
13 26 33 Oef erred taxes III) 7 7
- T5 3
T 5
14 14 (5)
Invest. tax cred. def erred
- 6 "lU' "lII Depreciation and amort.
1 62 Leferred Energy T
T) 7 7
7 7
Change in working capital (2)
III)
T T
~lI T
T Less: AFOC (4)
(6)
(5)
(5)
(6)
(10)
Total internal Tune 7
T T
T TcI TTT TOTAL FUND'
$ 63
$ 61
$10
$100
$1:6
$189 CONS *RCC TCN EXPENOI*URES(3)
IM*-2 Clernup 5 -
$ 5 s 10
$ 11 TM1-t Modifications ( )
~~lI
~II Iei Cther C3nst ruction Exp.
~II
~TI
~83
~7I
- 0!AL
$.1 3 71 3 88 s 83
$10
$I.TI i
CTSER CAPITAL REQUIREMINTS Recemption of Maturing Sonds 8
50 15 50 8
Acquisition of Sonds for Sinking Funds 2
2 2
2 2
2 Miscellaneous Require-2 g
I ments (detail)
TOTAL CAPl*AL REQUIREMENTS
$ 43
$ 81
$140
$100
$156
$189 CAP!TAL STRUCTURE ($ & )
Long-term deot S $42 52: s 532 51* $ 530 50* $ 522 49: $ $51 48: s 62' 50:
Pref erred stock 160 13 140 13 10 13 10 13 160 12 140 11 Common equity 356 35 377 36 400 37 61.
38 656 eo
=87 Ji TCTA'
$1038 100: $1069 100: $ 10/0 100: $I5T1"I55: $1165 200: $12 8 100:
I l
Short-term Debt (5)
$ 44 3 39 3 34
$ 39 s..
s I
l COVERA 0ES
.93 2.42 2.35 1.97
'2.09 1.99 In t e re s t Preferred Stock
.83 1.39 1.35 1.19 1.29 1.28 I Temporary Investments 2 1981 Includes Payment of DCE Liability of $11 million i
3 Exclusive of ATOC 4 Consistent with data request No. 2
' Excludes $13 millions boeds assumed to be paid of f in 1985 and 1986 s
l l
L
I 11.
g Pennsylvania Electric Company U. S. NCCLEAR RECUIATCRT COMMISSION THREE *1!LE ISLAND NUCLEAR STATICN, UNI" '0.
r\\
- 'd 1; STAR
- PRCCIE0!NG - MCKE' NO. 50-299 A**ACHwENT FCR !*!M NO. 5 STAT! VENT OF PRO FCP.wA SOURCES AND USES OF FUNDS FOR PLANT N DITICA* IONS, CLEASUP ACTIV: TIES, CCNSTRUCTION EXPENDITURES M.0 CAPITAL STRUC*SRE (MI:. LIONS OF 00LLARS)
YEAPS 1991 I982 I983 1986 I903 I980 EX !RNAL FUNC*!CNS S -
Common Stock S
? referred Stoc,s Long-tsr3 debt 3 -
e0 100 100 l00 Notes payable sTJ III) 7 5) 7 7
Contributions f rom 40 30 20 40 parent-net Other funds (describe)(1) 3 Total External Tunds
$3
$2 33 sg
$]
5
!N*!RNALLT CENTRA *!D CASH t
Net inco:e 39 53 A6 '
$3 54 65 Less:
preferred dividends (14)
(14)
(13)
(13)
(13)
(12) coe=on dividends (22)
( 38)
'31)
( 38 )
(-0)
(52)
Retained earnings 3
1 2
2 1
i Oeferred taxes 10 9
it 68 19 Invest. tax cred. deferred 5
5 9
13 16 9
Depreciation and azort.
52 55 58 62 e5 6*
2eferred Energy 3
3 Change in voraing capital (I) 3)
Y M)
~7I)
=
Less: ATOC (3)
(*)
(7)
(11)
(9)
(13)
- otal Internal Tunds T
TI TT T
T T
TOTAL FUNOS
$3
$3
$3
$N
$3
$3 CONS *?"C*!ON IXPEN3:*"RISf37 TM1-2 C;eam.o 3 -
$ 3
$ 5
$j SJ I':1-1 Modifications (N Other Construction Exp.
66 99 131 157 187 27L T0*AL
$3
$3
$3 33 33
$3 C*'3ER CAP!TAL t!CUIR!vEN*3 Re semo:Lon st Maturing Seeds 5
9 12 57 18 Acquisition of Sonds for Sinking Funds 2
2 2
2 2
2 Miscellaneous Require-neats (detail)(5) 3 3
3 3
3 3
70TAL CAPITAL EQUIRI. ENTS
$3 SM SM
$2
$d
$M w
CAPITE S? JC**:?! ($ 4 *)
ung-term dent 3 681 5ct S 669 53% $ 715 53% $ ?!6 54% $ 154 54; $ 934 57%
^
Preferr!. stock ted 13 165 13 to) (2 L a>0 at 157 10 iS=
9 Common equity
=20 33 Ji 3e ae3 35
=95 35 5te 3 557 34 T0*AL
$M: $Mt $1%! t 'PI S t r. t ! 'M T $ h t Sla-5
! ^0 *
$ 18
$ 2
$ 70 Short-ters ;ebe
$ 10 C0v! RACES interest 2.13 2.81 2.23 2.26 2.05 2.21
~~
Freferred Stock 1.30 3
1.33 l.36 1.30 1.33 1 Te=porary Investments 2 1981 !ncludes Payment of OCE Liability of $6 million 3 Exclusive of AEOC Conststent with data request No. 2 3 2enenture and Preferred Stock Sinking fund e
b g ' @ p. ->X 3
o gn* u O"'
a i
i d
- 2 5
7 7
2 6
- - 681 454 2 69 1
H 441 2 3
6 36 0
5 6
1 4
1 1
/
9 1
2 4
1 1
0 6
5 5
- 34o651 9
2 528
- 3 1
9 1
1 242 4
5 6
9 1
4 1
7 l 1
3 1
5 1
4 06002 3 -
1 273 3
39 0
4 6
5 t
2 05 5
5 8
9 41 8
61 5 1
t 2
1 1
5 1
3 0555 1 6 03 6
69 8
3 7
9 8
2 2
5 545 0
65 2
3 9
4 1
9 2
1 8
8 1 9 9
1 2
8322 - - - 5 5820 1
3 8
4 35 5
43 8
1 1
1 3
19 21 1
- - - 59 6 005 32 5
2 8
5 1
2 6
l 8
3 240 4
f 2
1 9
1 t~~
e s
c S a i
E c v e 55 91 34 5
1 81 999 8
1 I
e r t 1
T r ea 999999 9
1 1 1 1 1 1 1
I.
o SD l
F i
)
n T n s
I l
o n t
i o
C t i
I.
c l
y u
l t
t ll r
i i) i l'
s atl
- 25550 0
t H
cW I
2225 0
n$
p(
6668 0
1 o{
a e
IAC C
s R
a E m h
N e c
)
E t
r C s l
u y
(
P S
ep l
S y
CI CCCP F
mr T
i F
- t F n
)
e 2
i
,w
(
e
)
gr C
ae J-r v oo
) )
t G 0
NE)
S 0
PME y
1 l
db i
(
e O0%
0 pd n
I 1 mi o
)
4 ua i
C
)
P p s
JCN r
- JPC C
1 e
% - - J n
J n S t v
0%% -
o
- i P s n
1 00%
i
% s o
o) 1 4 0 t
0 a
,c o
6 a
0 l.
rf CN
,(
n r
1 n
PN l - PEC o
e
( s d o a% - MJ e i
n n
ly o0% - - g t
e oa l %
C00%% a a k G
r r l
0 i
l
(( t a
n r
a n ly l
l 5 900 r r
e dT n
1 o
e( ( 65 o l
c e l
F t
l n7 S
t e C t
o l
r n
l a
,s C
e o
e t
l e i
n o
am A
a iw1 2 o
C o
i oh r
vod## d T
r T
s it t
F T
ou s
e et r er g
el r s ro u
C s e
n r s al l pe n
t
- e i
a b
r l
- s i
e yywaa mt i
sI h m
t l i
a a
CA i
l u
G aaeoont t
yHt s
nl r
e r
SHSCCPo s OTO n OA t
l e
l i
a s
c n
))
c w
n e
x r
i u
e 1 2 I
N E
T D
N G
( (
JERSEY CENTRAL. I'0WER & l.IGilT COMPANY Constructfon Forecact
($ HIlitons)
In-Service Date 1981 1982 1983 1984 1985_
1986 New Generation Sayreville Coal Conversion 1985 2
8 20 20 Sewe rd-7 1989 4
8 12 Coa l # 1 1991 I
1 3
9 13 Coal #2 1993 1
3 5
Pumped Storage 1994 1
2 3
14 ot tier 5
1 4
i Total 7
9 22 30 24 48 Existing Ceneration i
Oyster Creek 36 45 56 62 142 62 THI-l 5
10 10 4
6 9
Ottier 4
3 5
4 2
11 Total Generation 52 67 93 100 174 130 Transmission Ontario liydro 1985 3
41 66 103 All Ottier 31 18 27 30 13 22 Distribution 34 54 58 73 77 78 Nuclear Fuel 8
24 27 31 34 47
'o :p Cenera l 3
4
_ __2
_ _2 2
_3
.$ 2d
,,p Total Construction MI, 208 273 39, 300 g
ta jL OX
'b 4
p 4
1 i
HETROPOI.ITAN EI)lSON CollPANY Constranctinn Forecast
($ Hillions) in-Service 9
I)a t e 1981 1982 1983 1984 1985 1986 1
4 New Generation Coal #1
-991 1
3 6
18 30 Coal #2 1993 l
Pumped Storage 1994 1
I 2
10 Other 1
Total 1
4
- 7 21 42 l:
Existing Generation
'till-1 10 19 20 9
13 18 l
Other 4
11 8
6 4
24
. Tot al Gene rat ion 14 31 32 22 38 84 Transmission 3
8 15 9
10 8
Distribution 18 31
't4 30 32 37 i
Nuclear Fuel 9
5 4
15 17 47 Ceneral 1
2 3
2 2
2 Total Const ruction 45 77 88 78 99 178 mb W T) 4 (Q *C (D (D U
?
Gs (L p.
OX J
t ei i
J.
1 e
5 7
PENNSYINANI A El.ECTRIC C0t1PANY Construction Forecast (S 1.1111ons)
In-Se rv ice
- 1) ate 1981 1982 1983 1984 1985 1986 i4ew Generation Ra ys town 1985 1
3 5
6 3
Sewa ril-7 1989 1
2 25 36 66 134 Coal il 1991 1
I 3
5 Coal #2 1993 1
2 5
other Total 2
5 31 44
~17e' 144 Existing Generation IN1-1 5
9 10 4
6 9
Ot lie r 32 38 40
_43 36 34 Total Generat ion 39 52 81 91 116 187 Transsiission 8
13 17 20 20 22 I)i s t ri bu t ion 33 34 36 47 49 50 Nuclear Fuel 5
2 2
8 9
23 Cene ra l 4
_2 2
2 2
2 Total Construction
_89 103 13H 168 M
284 y,ge in o
@ m
?J 40,p OX ts >
4
J Appendix 5 GENERAL PUBLIC UTILITIES TMI-2 Expenditure Forecast (S Millions)
TMI-2 Deferrals 1981 1982 1983 1984 1985 1986 Eef erred Costs S 42 S 45 5 48 S 23 S 21 S 23 Insurance Proceeds (41)
-(44)
(37)
(3)
Net Deferred Cost S
T ST S TT S 50 S 2T S 77 O&M Charced to Expense S 19 5 18 S 19 S 21 S 22 S 24 Note:
All costs are allocated among the GPU subsidiaries in pro-portion to their TMI-2 ownership (JCP&L and Penelec - 25%
each, Met-Ed - 50%).
Appendix C GENERAL PUBLIC UTILITIES Assumed Disposition of Current Base Rate Cases In 1981 (S Millions)
Last allowed ROE Amortization on "re cognized" Revenues for the Forked Rate Base (1)
I nves tmen.
River Investment Base Revenue Increases Jersey Central I2)
S27 N
Annual Award S
Ef fective Date March Met-Ed Annual Award S35 Effective Date May Penelec
- Annual Award
$40 Ef fective Date May (1)
Excludes all capital and operating costs associated with the following investments:
- TMI-l (until 1/1/82)
- TMI-2
- De f erred TMI clean-up costs
- Unamortized Forked River investment (2)
Jersey Central interim award of $60 million in June 1980 assumed to be retained.
Appendix D
- el e
2&
7.
..... i.....
- c. o.
=
z
-e=
s 4
E m
'+
- g
.m,
= t, e
z
- f. i ee w
l, g
e.
a no.
5 m e.o,
=
o e
a g3 u
m p
E W.
O t
g E,
=,i W-3 g
-i w
D w
- et e3 W
m en u
a o
+
\\
d
.c. f N
- 8 s. as 3
E
.3 C
i c2 woe
=
w y
Ei 5
De w
4 rj p
a m
.g w
E
?y~
I
.2 W -
l t t f t ! 1 I t t
.s t
eu = o, e p e p, a su - o g,,i c uwe uwz-.
s=
was 2 z e.
e i i
=
.i
- i. 4 4. 4 i a 4 i
w i. i e i e i e g
lh g
5 r
Iw
- n
~
g
- g y
s*
w
.r o
w
~
E
.. g g
L g
o w
o o
=
m, o
w o
=
a
= _
g g.
g g
g W
w w
w a
t
\\
o u
o u
o o
a s
w w
s 3
3 o
o
=
=.
=
a w
3 E.
w
=
w e
e y
z w
e t
w e
.e
.e g
g 3
i 4's.
4 L
u W
f
"'t 6
k W
e W
I I I f ? I ! i !
I
?
A
- ! I I I f I f I f f I
)
a.
c.
..,n o
t
=
- o....... n =
o
=.o i
OWE-@
kWE NIE UWE-O
$WI MII r
l t
I I
h
J GENERAL PUBLIC CTILITIES CORPORATION Metropolitan Edison Company, Pennsylvania Electric Company and Jersey Central Power & Light Company NRC Docket No. 50-299 Three Mile Island Unit No. 1 Restart Proceedinc Response to the NRC Staff's Additional Financial Information request No. 5 and No. 6, dated August 11, 1980.
5.
Complete the attached form entitled, " Pro-Forma Statement of Sources and Uses of Funds", on an annual basis for each licensee and GPU, through the year of estimated completion of the cleanup activities of TMI-2.
Note that this state-ment should encompass all necessary ccnstruction expenditures including capital expenditures relating to both TMI-1 and TMI-2.
Indicate the assumptions upon which the " Sources and Uses of Funds" statement is based.
These assumptions should include, but are not necessarily limited to, the following: (a) rates of return on average common stock s
equity, (b) preferred stock dividend rates, (c) long and short-term debt interest rates, (d) market / book ratios-for any projected issuances of common stock, (e) common stock dividend payout ratios, (f) target and year by year i
capital structure, and (g) resultant annual SEC and inden-l ture coverages on interest charges and preferred dividend coverages over the period.
Provide a brief explanation of the basis for each assumption.
t i
F., + =
6.
Provide a' list of all necessary.generading units, transmis-sion and distribution facilities and general plant projects i
~,.
- to be constructed during the period of clean-up of TMI-2, showing the type cf facility, t.at capacity of each generating unit, the estimated capital expenditures for each facility during each of the years involved, and the projected in-service date of each facility.
L
Response
Attached is our complete response to request No. 5 and 6.
The construction schedules requested in No. 6 are included as Appendix A.
This response replaces our previous response to a
request No. 5 which only provided data for 1981 and 1982.
There are some minor changes on the Source and Application of Funds Statements in 1981 and 1982 in this complete response versus our previous response.
i i
- =
I
b General Public Utilities 1981-1936 Forecast Introduction The attached forecast is -- as is true of any forecast a result of its underlying assumptions.
We have tried to ce ex-plicit in detailing our forecast assumptions and we believe these assumptions to be reasonable given today's knowledge of what might happen in the f uture.
There are, however, several forecast assumption areas that require further explanation.
Level of Construction Sir.ce the TMI-2 accident, the GPU companies have virtually elimina ted new generating station construction programs and have reducee non-nuclear construction programs at existing f acilities.
This forecast assumes that a material increase in our construc-tion program will commence in 1982.
However, this increase --
which includes undertaking new pro]ect initiatives such as the Sayreville coal conversion, the Ontario Hydro Tie and ma]or dis-tribution system improvements -- can and only will be possible given our other assumptions about events such as the return to service and rate base of TMI-1, available credit for the com-panies, a project financing vehicle for the Ontario Hydro Pro-l ject, adequate rate relief and the like.
The forecast assump-tions are interdependent so that if one of our assumptions changes (e.g. rate relie f) then others (e.g. construction pro-grams) will change as well.
The 46% increase in construction expenditures from 1981 to 1982 (see Appendix A, S265 millica to 5388 million) will not take place if there is a materially adverse development relative to the assumptions that we have made.
Level of Base Rate Relief l
The ma]or driving element in any utility's financial fore-cast is the rate relief assumption.
In this forecast we have elected to keep the rate relief assumption conservative by only applying future rate relief that is consistent with the rate making that we have experienced since the accident.
We believe that our needs and fairness to our investors dictate I
a differet.t level of rate relief and we are so requesting and arguing in our current rate cases.
The level of awards assumed in this forecast merely reflects the application of the rate-making that we have experienced since the accident.
Level of Expenditures at TMI-2 Our 1981 budget for TMI-2 has been established at about 560 i:
mi ion which is intended to be both a program that complies with c; tent regulatory agency directives and is consistent with our c._ rent financial condition.
i i
)
I d, A ma3cr directive concerning spending at TMI-2 is the September 18, 1980 Pennsylvania PUC order which required Metro-J politan Edison to " cease and desist from using any operating revenues for uninsured cleanup and restoration costs."
Our 1981 spending plan is based on complying with this order while con-tinuing to meet our license obligations with the NRC.
(See Dieckamp letter to Ahearne of September 12, 1960 and Ahearne i
letter to Dieckam.o of January 12, 1981.)
About 540 million of this program is for minimum plant operations to protect the immediate healtn and safety of the ruolic and tnese expendi-tures are considered to ce in compliance with tne PUC order.
The remaining 520 million for minor cleanup progress required oy NRC and needed to reduce the intermediate and long-term threat to public and worker safety, is currently financed by property insurance receipts.
Our forecast continues this basic spending program, with a normal allowance for inflation, through 1983, t
when available insurance monev. will essentiallv. be exhausted.
At that time, the forecast assumes a return to the S40 million per year (1981 dollars) spending level.
i The difference between this level of spending and the level of spending required to complete the clean-up of TMI-2 is assumed to be provided from some source (e.g. government or industry) other than customer revenues.
To the extent tha t external ' f und-ing is not available, customer revenues would be required on a dollar for dollar basis.
This additional capital and funds requirement is not included in our forecast.
l l
l l
l l
t i
i
,,,.-.. _.--,~ _. _......,..,,.. _, _. - _ _.. _ _.. _... _ _.,. _., _ _,. _ ~..,. _.,,.... ~,... _
3.
i General Public Utilities 1981-1986 Forecast Ma7or Assumptions I.
Costs and Construction 1981 through 1986.
Forecast Period TMI Availability TMI-l returns to full power 1/1/82.
TMI-2 out of service throughout the forecast period.
Construction Substantial increase in construction expenditures are included in the forecast starting in 1982. In summary, the follow-ing construction is included:
New Generation - Forked River nuclear =
pro]ect is acandoned.
Jersey Central's Sayreville oil units are converted to coal at a total cost of S100 million.
Penelec (90%) and Jersey Central (10%) construct Sewardm7 coal unit to go in service in 1989.
i4ajor construction expenditures on Seward-7 begin in 1983.
Expenditures start in 1983 for new units that are to go in service in the early 1990's.
Transmission - Jersey Central constructs tne Ontario Hydro tie at a cost of $250 million.
Project financing is assumed available for 70% of the Ontario Hydro project.
USDOE Deferral - The USDOE deferral of S39 million (JC - S22.million, ME - 511
[
million, Pt' - S6 - million) is assumed to-be paid in 1981.
The construction expenditures are
' summarized on Appendix A.
1 i
4.
Energy Costs
- 2 oil escalates 20% in 198] and 12%
annually thereafter.
As explained in the introduction to the TMI-2 Costs forecast, expenditures at TMI-2 are constrained by various regulatory agency directives.
The resultant expenditure level reflecting these constraints is shown in Appendix 3.
A 9
r 7,
.py--
r
.g----m
-w 4
wey 9,
w
-.wa
5.
General Public Utilities 1981&l982 Forecast Major Assumotions II.
Financine Assumotions New Capital Bonds 15.5%
Short-Term Debt 15.0%
JC's Project Financing 15.0%
Shcrt-Term Debt The GPU System maintains the Revolving Credit Agreement (RCA) with the follcwing limits:
JCP&L S122 million Met-Ed Met-Ed retains its current credit limit formula:
deferred energy balance plus uranium pledge (S20 million) plus accounts receivable pledge ($20-24 million).
When TMI-l returns to service and rate base Met-Ed's credit limit re-verts back to its previous level of S105 million.
Penelec
$116 million GPU Corp.
S 75 million System Total S292 million GPU Common Stock No new shares are issued.
For financial forecasting purposes, we GPU Common Dividend have assumed no external common equity sales so that GPU's common equity needs must be met through retained earnings.
We have selected our target common equity capital-ization (including short-term debt) percentage as 35% to 36%.
With these two assumptions our external dividend becomes those earning in excess if our retained earning needs as defined by our common equity capitalization goal. We h&ve shown such a dividend starting in 1983 and continuing throughout the forecast period.
This dividend assumption results in GPU paying out about 25% of its earning in the 1983 to 1986 period.
This dividend assumption and the payment of, or lack of payment of, a dividend in the future is not an indication of the prospective divident policy which'is reviewed quarterly by the GPU Board of Directors..
6.
Subsidiary Dividends to GPU 1981-1986: Penelec and JCP&L pay their earnings to GPU.
Capital Contributions 1981-1982: None except for retained to Subsidiaries earnings of subsidiaries.
1983-1986: As required to support capital projects.
l l
I I
l l
i l
i i
{
l
_ = _ _ _.
7.
General Public Utilities l
1981-1986 Forecast
[
Ma3or Assumptions III Ratemakino 4
The energy clause assumption for Met-Ed Energy Clauses and Penelec is intended to reflect our I
most recent ratemaking decisions which allow for an amortization of our existing deferred energy balance by the end of 1981 1
i and energy clause factors that keep the Pennsylvania subsidiaries current on energy costs in the future periods.
For Jersey Central, the assumption is that their de-ferred energy balance is amortized by the i
end of 1982 and they are also kept current on their energy costs.
l Base Revenues Appendix C details the ratemaking for 1981 which reflects the assumed disposition of our current base rate cases for all three subsidiaries.
We believe that our assump-tions are consistent with the ratemaking that we have experienced since the TMI-2 accident in that the awards we have assumed do not provide any revenue allowance for TMI-2 or TMI-l when they are not in ser-vice; provides no customer revenues to assist in the clean-up as either an ex-pense or rate base allowance; and does not change the allowed or earned return on common equity to reflect higher risks.
In 1982, the level of base rate increases for all three companies have been determined as follows:
Ratemaking provides revenues in the current year sufficient to have produced an earned return in the prior year of approximately 14% on the prior year's common equity de-voted to rate base.
Excluded from rate base are the TMI-2 clean-up costs and, for Jersey Central, the unamortized Forked River investment.
Also excluded as an allowable rate making expense are the l
O&M costs for TMI-2 that we are charging against income.
In the later years of the forecast period, CWIP is included in rate base as required to support the financing requirements for the high level of New Generation construction.
Appendix D is a graph of average customer cost (revenues divided by Kwh sales) that results from these ratemaking a?;umptions.
... - _. _ _ _.. -.. - - -, ~ -... - - - _ _ _. - - -. - ~ - _.. _
- - = - - -
,.. ~ ---
l i
i
\\
8.
\\
General Public Utilities Corporation g~
U. S. NUCLEAR RT.CULATORY CCMMIS$10N
- 4tE! w!Lt !sLAN5 NUCL!At STAT!ON, UMIT NC. I AISTART PROCEE0!NG - >>Cr.IT No. 50.90 j
Q ATTAC &ENT FOR ITEM NO. 5 1
STATE'T C CF Peo FO'MA SCUeCES AND U$t$ OF TUN 05 F0e PLAN
- 4 Q
- C0!TICAT!CNS. G E A% P ACTIVITIES, CONSTRLCT!0h EXPENC;TURES AE CAPI *AL f*RUOTURE (MILLIONS OF DOLLARS) i' YEAR $
!991 19?!
1983 1994 teP5 19?A I
EX*!RNAL FUNC*1CNS 5
3 j
Common Stock s -
5 i
Pref erred Stock 7
3 M
T03 T53 M
Long-ters debt Notes payable E)
(70) 31
~TI (51) 3a 7
T T
T t
Project Financing (Ontario Hydro)
~
~
~
~
~
Contributions from
)
parent-net T)
"Ti T)
- 7T) 7 Cther f unds (descrite){I)
T Total External Funds ST
$ 8
$2 3 5295
$2 8 sTil 1
IN*!RNALLY CENERAT!D CA$H
!?O 145 147 164 19.3 Set income i
Lessr preferred dividends (42)
(42) f41)
(40)
(40)
(39) j TIT)
TII) 7TI)
TIT) to 108 7e T
T tdt
[
i cocece dividends
~II T
25
.8 T
T lletained earnings 2
)
invest. tax cred. deferred
~Il)
T T
T T
T I
Deferred taxes i
Deptcciation and amort.
157 1e5 17.
185 III M
T T
7
~~7 7
7 Change in working capital C)
II7)
~3I T
T
~TI
~II Def erred Energy Less: AFDC (18)
(2$)
5)
( 32)
(29)
N)
Total Internal Funds III M
T*7 TTI M
M T0 AL F"NOS
$M 36.0
$ $e9 SM
$TIY
$Idi f
CONST7tC !ON EXPENCt*URIS Il 20 21 23 IMI-2 Cleanup
=
TwI-I Modifications (')
T Other Construction Exp.
III 363 e65 553 SM M
l S II T
$ tit f
- __ CAPITAL RtectRIwINTS
(
CTME7 f
Redemption of F.sturing 10 22 97 8'
123 53 Bonds
[
Acquisition of Bonds 4
8 8
- 8 9
9 for Sinking Funds d
Miscellaneous Require-sents (detail) W 6
47 8
8 8
8 I
I TOTAL CAPITAL C.'!T*'OTS
$267
$440 3589
$676
$727
$80$
l CAPITAL STRLC Upr ($ & :)
- ,ong-term Oct '
$2157 532 32166 52: $2252 52: $2440 53: $2605 53 52814 54 Preferred stock 510 12 50 12 500 11
.96 11
.89 10 63 9
e 142*
35 1532 30 1911 37 1690 36 1783 37: 1890 37 Comeen equity TOTAL 3 091 100: 5 2u2 100% $.30 10G: 5 026 100 $.8U toc: 3518; 100 Short-ters Zebt
$135
$ 64
$ 95
$112
$ 61
$ 99 I
i COVERACES Not ADD 11 Cable for Canselidated
,1 interest Preferred Stock J
i (1) Temporary investments (2) Includes Payment of Accrued Construction Liabilities of $56 million, of which DCE is $39 million.
(3) Exclusive of ATDC l
(*)
Corsistent with data requeet No. 2 W Debenture and Pref erred $ toes $1nking Funds and CPU's $39 million f
- ers Loan in 1982 l
l
9.
s
^ 4
\\ b Jersey Central Power & Liga.:
'. '. S. NUCLEAR RIO;".ATORY CO*2CS$!0N p
- FRE! *!L! !$LA'!! NU0i!A.8 $*A*??N, UN!? NO. I G
g%
PESTAR* PROC!!0!NO - DCCXI* NO. 50*I'9 V
O A**ACM*!!." FOR !*!* NO. 5 STA*!*IN* OF P90 TC#wA $0Ct0!$ ANO US!S OF FTC5 TOP PLAN *
- C"!?!OA!!CNS, OLEA% P AC71 II!&$, CON $7I C7 D EXPE'.0**LPES O!; CAPI
- d $7I"O*YPI
(*ILL:0NS C F DCLLAR$)
YIAJ S
!951 198*
1993 1886 1985 1994 Iv*!RN C FUN""!ONS Cetmen Stock 5 -
S 5
Preferred Stock Lonr-tere debt 50 3
Y U
C Notes payable
!C (51) 6 te)
( 3C)
-- r Projects Financing (Ont. Hydro) 30 Sv T
Contributioes from pa re nt-ne t 30 30 30 40 Other f unds (descrite)CI)
$2-sE sm-sg-su Tetal External /ueds
$2
!N !RS CLY CI'TERATIO CA5R 3et inc:=e 30
?!
67
?4
??
80
'a ss:
pref erred dividends
'!8) ff9)
(!?)
(1*)
(!?)
(!!)
common dividends
- 12)
( 53)
(**)
(Se)
(58) te )
Detained earnings 1
Leferred taxes 7
7 7
7 7
T Invest. tax cred. deferred 7)
T T
T T
T Depretiation and enort.
e e8 72 78 115 125 Leferred Energy 7'
7 7
7 7
~~"I Change in working capital (I)
Y)
~TI Y
~II Y
7 Less: AT00 (11)
(15)
(!2)
Ile)
(1 )
(9)
Total Internal Funds ITT T'T TT' TTT TTT E
TOTAL TUCS SM U
U U
$u
$N
$us S.E,
$u,,s m
s 00v57R0"*!0N tTPEN*!*rRI! W
!".I-i Cleanu p S -
S 3 3 5 5 5 5
$ 6 TM -1 *odificationsI*,)
3 Other Construction Exp.
117 193 251 3:3 2*e 271
- a*C SM W
t.
S m=
S t a.
g J*o gM
~~*
m a
w C FIR OAPIT C RE0CIPI*Iv*5 Rece stron of..aturing Bends 5
5 35 15 73 29 Acquisition of Sonds for Sinking Funds 4
4 4
5 5
Miscellaneous Reguire-sents (detail)t5) 3 5
5 5
5 5
70*AL CAPITAL REOCIP1.*ICS
$178-
$2*?
$;on
$ w?;
$3?'
$315 1
CAP!TAL !*RUC*URI ($ & %)
Lorr-term cent
$ 963 SC: 5 952 52 3 995 531 $1164 55: 5?!!8 55* $1*5:
56:
Preferred s!)ck 2C; il 199 11 197 10 l9a 9
192 9
189 6
Cottaca equity e71 39 671 37 7G2 37
- 13) 3e 7e5 36 607 3e TOTAL
$ 17 5" ! rCI
$l*2' 'VI
$!'G. P I $2'?! Uf:% $2'a5 lez; g;.5 lv; Short-ters Oeb S 67 3 61 s 55 s 59 3 29 COV!RAC!$
Interest 1.76 2 45 2.09 2.01 2.05 1.98 Preferred Stock 1.C4 1.51 1.3 1.29 1.31 1.32 1 Teeporary Investsents
- Inc'udes Pav en! of Accrued Construction Liabilities of $4I Billion, of which OCE is $22 e1311on 3 Exclusive of ATOC
- Consistent with data request No. 2 5 Debestare aed Preferred Stock Sinzing Fund a' Actrued iPterest on Project financing included i
1
10.
%h
\\i A
Metropolitan Edison Company l
C. S. ?COLEAR RIOULA* CRY COMMISSION Q(_(h TuRIE MILE !sLANO NUCLEAR STATION. UNIT NO. !
RTS* APT PPOCIESINC - toCTIT No. So-;e9 A**ACM E N* FOR !*!M No. 5 STA*EWFN* OF PRO FOR*tA SOURCES AND USES OF FUNOS FOR PLAN
- M DIFICATIONS. CLEANUP ACTIV;? ES, CONS *RLC*1CN EXPENCIT'JRES ANO CAPITAL S*FUC*URI (MILL!CNS {F OCLLAjtS)
YEAR $
1981 198; 1993
!944 1985 1986 EX"TRNAL FUNC* IONS Common Stock
$2 Sg Pref errec Stock "I6 7
7 7
Long-ters debt
])
])
]
])
]
Notes payable
])
Contributions from 15 parent-net T)
Other f unds (describe)fl) sT
$ 20
$ 51
- To. ". -
Total Ext.inal Funds
$()
$ (3)
IN*!RNALLY C!NTRJ*!D CASH f.e t Incese 3) 31 34
- 3 36 43 Less:
preferred dividends (10)
(10)
(10)
(10)
(10)
(10) 7 common dividends Retained earnings (12) 21 24 13 26 33 Def erred taxes
~II) 7 7
7 7
37 la 16 (5) invest. tax cred. deferred T
==
6 7
7 I
Decreciation and amort.
3 Lef erred Energy 68
~il)
~TI
~TT "Il Ct:ange in working capitalC2)
IIT)
T 7
Less: AFDC (4)
(e)
(5)
(3)
(6)
(10)
Total Internal runds T
T T
~Ti T5T TIT
- 0TAL FUtOf
$3
$ 81 5160
$100 3156 3199 CONS *'RUC*tCN EXPENtI*UPIS(3) 3-5
$ 10 S
TMI-; Cleanup TMI-t Modifications (')
7 7
Other C)nstruction Exp.
T T
T
'"?T T
$ +1 3 _71
$ _88
$ _8I
$ 3_
SI_7T
~
C* FIR CAPITAL REOU!REMIN*S Redemption of Maturing 8
30 15 50 l
Bonds Acquisition of Sonds for Sinking Funds 2
2 2
2 2
i Miscellaneous Require-ments (detail)
TOTA 1. CAPI *AL RIQUIRZwENTS s 43
'; 81
$140
$100
$156
$189
~
(API *AL $*RUC*URE ($ 4 %)
$[%0 2 SI: $ $30 50* 5 528 49: s $51 48: $ 621 5CL
- Long-ters cent 3 542 52:
23 140 13 10 13 160 12 10 11 Preferred stock too 13
~T'7 36
=00 37 413 38 456 40 687 39 Coteson equity 356 35 TOTAL
$1034 100% $h*9100: $1010 100 $1cel 166: $1165 10C* $12ee 100 e
Short-ters Debt (5) 33 j 39
$ 34 s 39 s-3 i
~
~~
COVEFACES
.93 2.4*
2.35 1.97 2.09 1.96
- n t e re s t Pref erred Stock
.43 1.39 1.35 1.t9 f.29 1.23 1
1 Temporary Investments 1
1981 Includes Payment of DCE LiaYtlity of $11 million 2
4 3 Exclusive of AFOC 4 Consistent with dat.s request No. g Excludes $13 millione ends assur44 to be paid off in 198$ and 1996 5
.,... ~.. -..-
11.
i i
Penesylvania Electric Company b'
k U. S. NUC* EAA R101;t.ATORY C0t?'I53!0N NREE wtLE 11 LAND NUCt.!AR STATION, "N!? *:0. I g
\\
RE5* ART PRCCEEDINO - DOCK!* NO. 50-239 9
AT*ACHMEN* FOR I*Ev NO. 3 Q
$TA!!w!NT OF PRO FOR"A SOURCES AND USES OF FUNCS FCR PLANT tdt?!CA!!CN5. CLEA.NUP ACitt !Tt!S, CONSTRecT cN EXPENDITUilES AND CAPITAL S*PUC*"#E etLLtcNs CF DOLLARS /
YEARS 1981 te82 1983 1994 1985 tqes EX ttNAL FUNC*:CNS r
Coemon Stock
$2 32
$2 Preferred 5tock s0 100 1C0 100 Long-term debt 7
7 Q)
~IT ITs")
7 Notes payanle Contri ktions free 40 30 to 40 parent-net other funds (descrite)(1) 7 "TT Total External Funds
$3
$3
$3
$3
$3 IN*!RNALLY c!N!?A!!O CASM Net Inco=e 39
$3 46
$3 54 65
>
Genera l 3
4 2
2 3
2 om D
i Total Construction 131 208 273 3y 300 180 ta g 8
OX e t.
>+
As i
t i
i 1
1 i
i j
flETROPol.ITAN EDISON Cotil'ANY Construction Forecast
($ Hillions) i In-Se rv i ce 6
Date 1981 1982 1983 i984 1985 1986 New Generation Coal #1 1991 1
3 6
18 30 t
}
Coal #2 1993 1
I Pumped Storage 1994 1
I 2
10 Other I
Total 1
4 7
21 42 i
)
Existing Generation 1MI-I 10 19 20 9
13 18 Other 4
11 8
6 4
24 Total Generation 14 31 32 22 38 84 4
l Transmission 3
8 15 9
10 8
Distribution 18 31 34 30 32 37 Nuclear Fuel 9
5 4
15 17 47 l'
Ceneral I
2 3
2 2
2 i
Total Const ruction 45 77 88 78 99 178 co >
Da *U iO 'O (D (D U
j w o..
OX en 3*
f J.
l
PENNSYINANI A El.ECTRIC COMPANY Construction Forecast
($ HIIIlons)
In-Service Date 1981 1982 1983 1984 1985 1986 New Generation Rays town 1985 1
3 5
6 3
Sewa rd-7 1989 1
2 25 36 66 134 Coal #1 1991 l
1 3
5 Coal #2 1993 1
2 5
other
~T 17ii.
Total 2
5 31 44 7
Existing Generation 1NI-l 5
9 10 4
6 9
other 32 38 40 43 36 34 7 mal Generation 19 52 81 91 116 187 Transmission 8
13 17 20 20 22 Distribution 33 34 36 47 49 50 Nuclear fuel 5
2 2
8 9
23 Ceneral 4
2 2
2 2
2 Total Const ruction 89 101 118 168 196
,284 y,g*
mv*a
.. n.
g o.
O >C 69.
s.
i i
r t
i i
Appendix B GENERAL PUBLIC UTILITIES TMI-2 Expenditure Forecast J
(S Millions) i 1
1 i
TMI-2 Deferrals 1981 1982 1983 1984 1985 1986 Deferred Costs S 42 S 45 5 48
$ 23 S 21 S 23 l
Insurance Proceeds (41)
(44)
(37)
(3)
Net Deferred Cost S7 ST S TT S 76 S 7T s 27
~
O&M Charced to Expense S 19 S 18 S 19 S 21 S 22 S 24 i
Note:
All costs are allocated among the GPU subsidiaries in pro-portion to their TMI-2 ownership (JCP&L and Penelec - -25%
each, Met-Ed - 50%).
I 1
I ll.
t
.ms,.w,.m-.......-,.,-,--,.~,-----...,,-r w~.,-.---,--w,...,.
e..------.
,,..-,r.,,,..,
..,w..,
--,e
--,w,.-
m-
i
.l I
Appendix C I
GENERAL PUBLIC UTILITIES Assumed Disposition of Current Base Rate Cases In 1981 (S Millions) 1 I
1 Last allowed ROE Amortization on " recognized" Revenues for Rate 3ase the Forked Inves tmenb1I River Investment j
i f
l Base Revenue Increases I
' Central Jersey II S27 Annual Award S
I Ef fective Date March Met-Ed l
Annual Award S35 l
Effective Date May i
Penelec I
Annual Award
$40
{
Ef fective Date May i
4 (1)
Excludes all capital and operating costs associated with the following investments:
l
- TMI-l (until 1/1/82)
- TMI-2 l
- De ferred TMI clean-up costs
- Unamortized Forked River investment l
l (2)
Jersey Central interim award of $60 million in June 1980 i
assumed to be retained.
J t
, e.e-ro mw er p e-eer o-w -w-- pw -= n n
",e--p
- w. m, wre -v r~w.
ees ~e g er., ~~ sev
~ww
-w.w e e,.aw e - w, - m r e - -m
, -e v---c,-e
+a--- + - - -
Appendix D I
j m lC ID e e
s=*
- 0 0**
]g
==
pC=
_ e i i e I
6 e
e I
4
's e=
.c.
90 C
a as d
=
.C e
M K
e e
2
=
U me e
A M*
g
=
ee eaw e
3
== T m e. W*
~
e sn 0
e-
.T E
- e
,C,,
==
- =
O y
U EO e
M
=
p E
O e
.m w
=
=
e 0
S ao c
oss e=
W aC;
== m W
me s
w E
O N
3 m 8 War y
y s
T m @ C.
o o,
e em L
.e q
E Ce a
o y
y G
w C
SC g
w q
U V
e a
a g
y mf
\\
e f ? f f '
I f I 3W-f
[$I N ** O 9 mM W @, eN - O uc.
(#wE>*
bwW ad 3 E 9Ea l
6 4 4 i i 4 i 4 e
6
'W i
e 1 6 i i i 6 6 8 i 4 i
=
i E
q g
g Ms
=
E, U
a.s U
e g
5
.. g g
g O
U O
0 y
e M
O E
M g
a m
o m
E w
s s'! _
g y
W a
w O
u O
U K
e D
ftp ns#
W e
>a 2 _
O O
S w
E R e 4
g a
naJ
.t
.Y
- j Y
m S
so a.
em G
W U
0
=
e e
e lee 9
ed 4
se s
b t
t O
N 9
O um f ! !
}
I ! ! ! ! !
~.
O. e e r. e + e n m - o n - O S e r.
em,em o
~
== es se
.e U 440 E > @
b 400 E M3E OWIMO &WI M3E