ML20003F719

Forwards Toledo Edison Co Annual Financial Rept 1980, Quarterly Rept for Fourth Quarter 1980,schedule of 1980 & 1981 Internal Cash Flow & Cleveland Electric Illuminating Co Annual Financial Rept 1980

ML20003F719
Person / Time
Site:	Davis Besse
Issue date:	04/16/1981
From:	Crouse R, Ertle R TOLEDO EDISON CO.
To:	Saltzman J Office of Nuclear Reactor Regulation
Shared Package
ML20003F720	List: ML20003F719 ML20003F723
References
712, NUDOCS 8104230464
Download: ML20003F719 (2)

Text

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Docke; No. 50-346 TOLEDO License No. NPF-3 EDISON Serial No. 712 April 16, 1981 United States Nuclear Regulatory Commission Stl40 4 Atta: Mr. Jerome Saltz =an, Chief g Antitrust & Indemnity Group /[q f l.f p T p Nuclear Reactor Regulation g y Washington, D.C. 20555

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s Re: Davis-Besse No. 1 A' L , ,,

Retrospective Premium Guarantee k% NQ.. Y-3-V ,

The Toledo Edison Comptny hereby provides the documents described below and enclosed herewith as evidence of its guarantee of its share ($4,862,000) of the retrospective premium which may be levied against the Davis-Besse Unit No. 1 reactor licensees during the period April 23, 1981 thru April 22, 1982.

1. The Toledo Edison Company 1980 Annual Report to shareowners which in-cludes certified financial statements for the calendar year 1980.

2. The Toledo Edison Company 1980 Fourth Quarter Quarterly Report, which includes financial statements for the quarter ending December 31, 1980 (the 1981 First Quarter Quarterly Report is not yet available.)

3. A schedule of 1980 Actual Internal Cash Flow and 1981 Internal Cash Flow Projection. .

Based on the data set forth above, The Toledo Edison Company believes that a cash flow can be generated which would be adequate should it be required to pay any retrospective premium in the amount of $4,862,000.

l Also enclosed is The Cleveland Electric Illuminating Company's Estimate of

Cash Position and Source of Funds Actual 1980 and Projected 1981. This statement shows that The Cleveland Electric Illuminating Company believes I that a cash flow can be generated which would be adequate should it be required to pay any retrospective premium in the amount of $5,138,000. gD0Y Thus, the Cash Flow Statements of the Toledo Edison Company and The Cleve-land Electric Illuminating Company enclosed herein demonstrate the ability j to pay a combined retrospective premiun of $10,000,000 for Davis-Besse i

Nuclear Power Station Unit No. 1.

W&_!f = - _- Robert F. Ertle Richard P. Crouse Vice President - Nuclear Assistant Treasurer cc: Luis Reyes Enclosures THE TOLEDO EDISON COMPANY EDISON PLAZA 000 MADISON AVENUE TOLEDO. OHIO 43552

810.4230 %h y

THE TOLEDO EDISON COMPAhT 1981 INTERNAL CASH FLOW PROJECTION FOR DAVIS-BESSE N" CLEAR POWER STATION (Dollars in Thousands)

Actual Projected 1980 1981 Net Income after Taxes (l) S 67,178 -

Less Dividends Declared 61,741 -

Retained Earnings (l) S 5,437 -

Adjustments:

Depreciation and Amortization S 28,580 $ 44,000 Deferred Income Taxes and Invest-ment Tax Credits 16,359 27,100 Allowance for Funds used During Construction (43,591) (49,400)

Total Adjustments $ 1,348 S 21,700 Internal Cash Flow $ 6,785 S 27,000 Average Quarterly Casa Flow $ 1,696 S 6,750 Percentage Ownership in:

Davis-Besse Nuclear Power Station Unit No. 1 48.62%

Maximum Total Contingent Liability S 4,862 (1)The Company does not publish its projections of net income af ter taxes and dividends paid. Thus, the Company has elected to show no estimate of Retained Earnings for 1980 since it can demonstrate that it is able to generate sufficient cash flow from net non-cash expenses and other sources to cover its maximum total contingent liability.

CERTIFICATION I, Donald H. Saunders, Treasurer of The Toledo Edison Company, hereby certify that the foregoing Estimate of Cash Position and Source of Funds for calendar year 1981 is derived from accurate data and reason-able assu=ptions t.nd is a reasonable estimate.

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April 16, 1981 / -

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n'; . _

Donald H. Saunders

THE CLEVELAND ELECTRIC ILLUM!N ATING COMPANY P C. SOX 5000 e CLEVELANO. CHC e.101 e TELEPHONE G16) 622-9000 e ILLuuiNATING SLOG. e 55 PUSUCSCUARE Serwng The Best Locacon in the Nation Edgar H.Maugans viCE #AESCENT. AAANCE April lo, 1980 Jerome Saltzman, clief Antitrust & T_ada-a4 ty Group helear Beactor Regulation

.iuclear Begulatory Commission

• -hin-ton, D.C. 20555 Be: Docket No. 50-3166 Retrospective Premium .iuarantee

Dear Mr. Salt =mn:

Me Cleveland n ectric Illuminating company hereby provides the documents described below and enclosed herewith as evidence of its guarantee of its share ($5,138,000) of the retrospective premium which :nny be levied against the Davis-Besse Imit No. I reactor licensees during c=1=ad** year 1980.

1. Be Cleveland nectric T11"=4nating m=pamr 1979 Annual Report which includes certified financial statements for the calendar year 1979

2. Me Cleveland nectric niuminating Compary 1979 Fourth Quarter Quarterly Review which includes financial state-ments for the quarter ending December 31,1979(the1980 First Quarter Q2arterly Review is not yet availmhie).

3 An Estimate of Cash Position And Source of Flands act,-0.a1 1979 and projected 1980.

Accordingly, Me Cleveland nectric 771m=4n= ting 03=aany believes that a cash flow can be generated which would be more than adequate should it be rewed to pay any retrospective premium in the aamunt of $5,138,000.

Sincerely, E. H. M*"-an=7 Vice Presiden' ace IUU:ag cc: nnna M G. Nichn1 ton Vice President, F % nce Toledo Edison Cbmpany 5 ,l' ,? I yl l6 l ) ;)

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1960 Internal cash Flow Pmdec"on for Davis-Besse Unit No.1 Nuclear Power S*ation (nn17mra in 2cL==M=) l 1979 1980 Actc.a1 Projected '

Retained F e ines(1) . ........... $20,390 4 -o- l Adjustments Depreciation ad Amortization ...... 59,459 71,788 Deferred Tnen=a hxes and Iwsent Tax credits .............. 21,445 47,021 A11& ~ e for Funds Used During Construction . . . . . . . . . . . . . . (49,165) (65,51)

Total Adjustments ............. 31,739 53,k18 Inte=al Cash Flow . . . . . . . . . . . . . $52,129 $53,k18 Avere.ge Saarterly Cash Flow ........ 413,032 $13,355 Percentage Ownership in Unit . . . . . . . . Davis-Besse Unit No. 1 = 51 3 4 Mar *== Total contingent t*=h414 ty . . . . . $ 5,138 4 5,138 (1) " Retained Za=i=gs" neans net ine::xne after income taxes aM divi-dends paid. Se Cce:pa=y does not publish its projecticus of these amounts. Accor.*.ingly, net income af*ar taxes and dividends paid used in the 1980 pmjected data, al*Jxntgn centrary +4 the Coagacy's expectations, has been assumed to be s.ero. Se figures shown for the 1960 projection year are those acn-cash items necessary +4 establish that its wr*== total contingent 14=h418ty can be satis-fied framt intemal cash flow.

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I, Edgar H. 9"-==, Vice President-Finance of 3 e Cleveland Z1ectric T11m 4'ating m==w, hereby certify that the foregoing Estimate of Cash Position and Source of Furds for e=1=A=* year 1980 is derived frcza accu-rate data and ra= =nable assumptions and is a reasonable estimats.

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Balance Sheet Results of Operations Thousands of Dollars Thousatuls of Dollars Fourth Quarter Twelve Months Emled llecember 31, 1)cormber 31, 1980 1979 1980 1979 1980 1979 Assets Operating llevenues Progeriy, Plant lWyurpenrne 101 085 llH 0115 Electric 394 888 358 707 In service 1208 OnI 979 1100 1 307 1 O 311 Gaa 4 182 3 Sil3

1. css accumulninl pro- 916 115 5 Stram heating 2 800 21131 vision for elepreciation 220 629 2011195 103 308 119 UHil Total operating revenues 401868 3:15 121 987 372 777 914 ggy, ruling Expenses Construs: lion wotk in 29 928 24 til2 Fucl unniin power plants progress 110 423 93 295 518 748 519 404 12 760 19 623 l'urchanni A inters.hangni power-net 45 348 53 574 Nuclear furi-ncl 17 844 11 780 14 653 11174 Operation 55 842 44 091 Current Anwis 103 898 IMl 793 7 392 5 919 Maintenance inventinents unil(Hher 73 785 71 555 29 319 21 137 6 238 11254 Depreciation provisions 26 802 29 117 Total Assets 1 701 443 1 467 512 7637 7 040 State nnel local Iaxes 31 202 29 760 4 208 1750 Fnicrn! Incomo taxes 23 378 25 139 82 814 7tl 372 Total operating expenses 321 512 296 713

1. labilities 20 494 13 614 Operating incinno from Sales to Customers 80 358 HH 408 Capaaluutton Otlurr Incenno

8 908 0 955 Allowance for ripsity fumls usal sluring constmrtion 28 443 23 512 O, nnmon atm k equil 478 993 432 554 3 127 2 0n0

, Cu im! live preferrn income tax crnlits applicable lo nonoperating items 13 218 8 251 305 39' Other income A ilnluctions-nct 879 1 017 218 500 IMtm 1.ong-term t!rht _ 714 408 __011 137 1Mt 1L M Total of her income 42 540 32 7H0 1 1 40s 899 1 227 091 30 835 23Ibil incinno lirforer interest Cluirges 122 896 101 tilli Interest Clutrges Short.Trnu Notes Paynbla 39 000 23 500 18 268 13 787 1.ong-lcrm alcht 56 673 48 315 f.ru t Trrrn th htI)"" 3 331 37tl Short.tcrm borrowings Wsthin One Yrar 3 520 41 912 14 193 4 2169 Allowance for luirrown! funits A i i l. Pr si N """ " "N'""" " "" I --

for t h ferrril Toten, ric. 77 755 jl' 3til 15 920 112nH Interral charges-net 55 718 42 593 Total I.inbilitics 1701443 14H7 512 14 915 11113t6 Nel inanno 67 178 511 595 4 908 3 H27 l'rrfctrnl stock slivialenals accrucel 18 021 13(194 10_009 ljjWfj Earnings on Common Stirli 49.15'1 44 701 20 125 288 17Il01 583 Averogo Number of Shores Ontstomimg 19 226 163 10 fl4tl 431 A stamlarit forrcast form showing our lasest 50s 45c Eornings l'er Averogo Common Sharo $2.58 $2.fl5 les u I si i crt tl r ni e i I licturn on Averogo Crnunum Equity 10.5% 10.7%

proicrtions will be available upon respics: Io The tuno Agurve are staleilon an interim leante ar=1 are suhici.e to au ht anil ailjuntment.

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THE CLEVELAND ELECTRIC ILLUMIN ATING COMPANY FP.o. SOX 5000 Edgar H. Maugans e CLENELANO. CMoo 44101 e TELEPHCNE (216) 622-9000 e ILLUMMATING SLOG. e $$ PUSUCSoVARE Serving The Best Locanon in the Nation viCE PRESI::ENT. FINANCE April 2, 1981 Jerome Saltzman, Chief Antitrust & Indemnity Group Nuclear Reactor Regulation '

Nuclear Regulatory Ccamission washingten, D.C. 20555 Re: Docket No. 50-3h6

Dear Mr. Saltznan:

Retrospective Premium Guarantee The Cleveland Electric U1Mnating Company hereby provides the documents described below and enclosed herewith as evidence of its guarantee of its share ($5,138,000) of the retrospective premium which may be levied against the Davis-Besse Unit No.1 reactor licensees during calendar year 1981.

1. The Cleveland Electric T11=4nating Cc=pa=y 1980 Ammi Report which includes certified financial state::ents for the calendar year 1980.

l 2. The Cleveland Electric T71*n= ting Ccapany 1980 Fourth I quarter quarterly Review which includes finare ial state-

nents for the quarter ending December 31, 1980 (the 1981 First Quarter quarterly Review is not yet avm41mhia).

l l 3 An Estimate of Cash Pesition and Source Of Pmds actual 1980 and projected 1981.

According17, The Cleveland Electric T11=4"* tics Ccupany believes that a cash flow can be geLc ated which would be :ncre than adequate should it be required to pay any retrospective premium in the amcunt of $5,138,000.

Sincerely, 0_

b- -

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3. E. Min:gand

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Vice President-Finanr e PJU:di Enclosures

! cc: Donald G. Nicholson l Vice President, Finance Toledo Edisen Cc=pany

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1981 Internal Cash Flow Projection for Davis-Besse Unit No.1 Nuclear Power Station

(Dollars in Thousands) 1980 1981 Actual Projected Retained Earnings (1) ...................... $12,','21 $ 0-Adjustments Depreciation and Amortization ........... 64,640 85,741 Deferred Income Taxes and Investment

. Tax Credits ........................... 30,330 40.151 Allowance for Funds Used During Construction........................... (65,924) (76,500)

~

Total Adjustme nts . . . . . . . . . . . . . . . . . . . . , . . . . 29,046 49,392 Internal Cash Flow ........................ $41,767 $h9,392 Average quarter 1; Cash Flow ............... $10,4k1 $12,348 Percentage Ownership in Unit .............. Davis-Besse Unit No. 1 = 51 38%

M=4 == Total Contingent Liability . . . . . . . . $ 5,138 $ 5,138 4 (1) " Retained Earnings" means net income after income taxes and divi-dends paid. The Ccxupany does not publish its projections of these 4 amounts. Accordingly, Det income after taxes and dividends paid used in the 1981 projected data, although contrary to the Cczupany's expectations, has been assumed to be zero. The figures shown for the 1981 projection year are those non-cash items necessary to j

establish that its mar 42m2m total contingent liability can be satis-fied from internal cash flow.

l l

EEaIIIIEA11gg I, Edgar H. Maugans, Vice President-Finance of The Cleveland Electric j T11=4nating Company, hereby certify that the foregoing Estimate of Cash Position and Source of Funds for calendar year 1981 is derived from accu-rate data and reasonable assumptions and is a reasonable estimate.

l 4 yM h.1- $ l Date Edgar H. Maugans i

()

THE CLEVELAND ELECTRIC ILLUMIN ATING COMPANY tPo. sox 5000 Edgar H. Maugans e CLEVELANo. oHlo 44101 e TELEPHONE (216n 822-9000 e ILLUMINATING SLcG. e SS PUBUCSoVARE Semng The Best Location in the Nation vlCE PAESCENT. FINANCE April 2, 1981 t

Jerome Saltzman, Chief Antitrust & Inda="4ty Group Nuclear Reactor Regulation Nuclear Regulatory Comunission -

Waahington, D.C. 20555 Re: Docket No. 50-3M

Dear Mr. Saltzman:

Retrospective Premium Guarantee The Cleveland Electric T11"=4n= ting Company hereby provides the documents described below and enclosed herewith as evidence of its guarantee of its share ($5,138,000) of the retrospective premium which may be levied against the Davis-Besse Unit No.1 reactor licensees during calendar year 1981.

1. The Cleveland E?ectric TT1-4nating Cc=pany 1980 A~mm1 Report which includes certified financial statements for the calendar year 1980.

2. The Cleveland Electric T11"=4n= ting Ccampany 1980 Fourth quarter quarterly Review which includes financ4al state- -

ments for the quarter ending December 31, 1980 (the 1981 First quarter quarterly Review is not yet av=4T=hla).

3 An Estimate of Cash Position and Source Of Funds actual 1980 and projected 1981.

Accordingly, The Cleveland Electric T11"=4nating Ccmpany believes that a cash flow can be generated which would be more than adequate should it be required to pay any retrospective premium in the amount of $5,138,000.

Sincerely,

,  % ,,/

E. R. Maugar Vice President-Finance RJU:jl Enclosures cc: Denald G. Nicholson Vice President, F*nant's Toledo Edison Ccmpany

~ . _ . _ _ _ _ . - _ - _ _ _

1981 Internal Cash Flow Projection for Davis-Besse Unit No. 1 Nuclear Power Station (Dollarm in Thousands) 1980 1981 Actual Projected Retained Earnings (1) ...................... $M,721 $ Adjustments Depreciation and Amortization . . . . . . . . . . . 64,640 85,741 Deferred Incane Taxes and Investment Tax Credits ........................... 30,330 40,151 Allowance for Funds Used During Construction........................... (65,924) (76,500)

Total Adjustments ......................... 29,0h6 49,392 Internal Cash Flow ........................ $41,767 $49,392

~

Average quarte *17 Cash Flow ............... $10,441 $12,348 Percentage Ownership in Unit .............. Davis-Besse Unit No. 1 = $1 38%

Maxi:m2m Total Contingent ,iability . . . . . . . . $ 5,138 $ 5,138 (1) " Retained Earnings" means net b1come after income taxes and divi-dends paid. The Company does not publish its projections of these amounts. Accordingly, net income aft 2r taxes and dividends paid used in the 1981 projected data, although contrary to the Company's expectations, has been assumed to be zero. The figures shown for the 1981 projection year are those non-cash items necessary to establish that its ==v4== total contingent liability can be satis-fied from internal cash flow.

EERil{lgA11gN I, Edgar H. Maugans, Vice President-Finance of The Cleveland Electric T11=4nating Company, hereby certify that the foregoing Estimate of Cash Position and Source of Funds for calendar year 1981 is derived from accu-rate data and reasonable assumptions and is a reasonable estimate. .

O b-hk / 1% g 4.~+

Date Edgar H.(Myans v

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