ML20030A226
| ML20030A226 | |
| Person / Time | |
|---|---|
| Site: | Callaway  |
| Issue date: | 10/16/1979 |
| From: | UNION ELECTRIC CO. |
| To: | |
| Shared Package | |
| ML20030A225 | List: |
| References | |
| NUDOCS 7910250256 | |
| Download: ML20030A226 (35) | |
Text
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UNITED STATES NUCLEAR REGULATORY COMMISSION i
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1 AMMENDMENT TO THE APPLICATION FOR OPERATING LICENSE FOR A
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UTILIZATION FACILITY i
t UNDER THE ATOMIC ENERGY ACT OF 1954 AS AMENDED, i
FOR 1
CALLAWAY PLANT i
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UNION ELECTRIC COMPANY j
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SNUPPS-C a
UNION ELECTRIC COMPANY
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t AMMENDED APPLICATION FOR OPERATING LICENSE 1.
NAME OF APPLICANT Union Electric Company 2.
ADDRESS OF APPLICANT P..O.
Box 149 St. Louis, Missouri 63166 3.
DESCRIPTION OF BUSINESS ANDJORGANIZATION OF APPLICANT Union Electric Company (hereinafter referred to as "UE")
is an independent, investor-owned public utility duly organized and existing under the laws of the State of Missouri and is qualified to do business in the States of Missouri, Illinois and Iowa.
UE and its subsidiaries, Missouri Power & Light Company, Missouri Edison Company, and Missouri Utilities Company are primarily engaged in the generation, transmission, distribution and sale of electricity and serve at estimated population of 2,723,000 over a 24,000 square mile area wh.ch includes the greater St. Louis metropolitan area and the eastern third of the State of Missouri, the southeastern tip of Iowa
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and the western part of Illinois in the East St. Louis, Alton, and
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Hamilton, Illinois areas and environs.
A map of the area served by the UE system is depicted on page 11 of the Union Electric Company Annual Report for 1978 (See Exhibit I).
The total system electric customers number approximately 955,000.
UE, which employs approximately 5,400 persons, operates fossil-fired, hydroelectric and pumped-storage electric generating facilities with a total system capacity of 6,463 megawatts.
The UE system gross instantaneous peak load for 1979 was 5,795 megawatts.
UE is interconnected with neighboring utilities and is an active member of both the Illinois-Missouri Pool and the Mid-America Interpool Network coordinating group.
UE also supplies gas purchased from a pipeline company to over 16,000 customers in Alton, Illinois, and supplies steam for heating and other purposes to 380 customers in the downtown business section of St. Louis, Missouri.
In 1978, total system operating revenues were approximately $904 million, 93.4% of which were derived from electric operations.
The names of UE's directors and principal officers, all of whom are citizens of the United States of America, are as follows:
(o~h 0008 h.
l SNUPPS-C Directors Address j_s
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J.
A.
Baer II 500 N.
Broadway St. Louis, MO 63102 W.
L.
Behan, Jr.
Hill-Behan Lumber Company 6515 Page Boulevard St. Louis, Missouri 63133 Sam B.
Cook The Central Trust Company 238 Madison Street Jefferson City, MO 65101 W.
E.
Cornelius Union Electric Company P.
O. Box 149 St. Louis, Missouri 63166 Earl K.
Dille Union Electric Company P.
O. Box 149 St. Louis, Missouri 63166 Charles J.
Dougherty Union Electric Ccmpany P.
O.
Box 149 St. Louis, Missouri 63166 Edwin S. Jones 510 Locust ; treat
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St. Louis, M r.auri 63101 R.
A. Meyer 9046 Fernald Drive St. Louis, Missouri 63123 John K.
Riedy INTERCO Ten Broadway St. Louis, MO 63102 Stewart W.
Smith, Jr.
Union Electric Company P. O.
Box 149 St. Louis, Missouri 63166 Howard L.
Young American Zinc Sales Co.
7701 Forsyth Boulevard St. Louis, MO 63105 Princigal_ Officers Address Charles J.
Dougherty, President Union Electric Company and Chief Executive Officer P.
O.
Box 149 St. Louis, Missouri 63156 W.
E.
Cornelius, Executive Union Electric Company Vice President P.
O.
Box 149 St. Louis, Missouri 63166 I
0009 Cf ;
SNUPPS-C Earl K. Dille, Executive Union Electric Company
[N Vice President P.
O.
Box 149
(,)
St. Louis, Missouri 63166 H. Clyde Allen Union Electric Company Vice President P. O.
Box 149 Rates St. Louis, Missouri 63166 John K. Bryan, Vice President Union Electric Company Nuclear P.
O.
Box 149 St. Louis, Missouri 63166 H.
C. Colteryahn Union Electric Company Vice President P. O.
Box 149 Engineering and Construction St. Louis, Missouri 63166 J. T.
- Friel, Union Electric Company Vice President and Controller P.
O.
Box 149 St. Louis, Missouri 63166 M.
E.
Gatewood Union Electric Company Vice President P.
O.
Box 149 Supply Service St. Louis, Missouri 63166 G. J.
Haven, Vice President Union Electric Company Transmission and Distribution P. O.
Box 149
'T St. Louis, Missouri 63166
[V Colbert W.
Lais, Vice President Union Electric Company Regional Operations.
P. O.
Box 149 St. Louis, Missouri 63166 William A.
Sanford, Vice President Union Electric Company Industrial Relations P. O. Box 149 St. Louis, Missouri 63166 Stewart W.
Smith, Jr.,
Union Electric Company Vice President and P.
O.
Box 149 General Counsel St. Louis, Missouri 63166 Merle T.
Welshans, Vice President Union Electric Ccmpany Finance P. O.
Box 149 St. Louis, Missouri 63166 H.
E. Wuertenbaecher, Jr.,
Union Electric Company Vice President P.
O.
Box 149 Customer Service St. Louis, Missouri 63166 OG OO.:(0 00 -.
c-SNUPPS-C C. W..Mueller, Treasurer Union Electric Company s
P.
O.
Box 149 1_)i St. Louis, Missouri 63166 G.
R. Murray, Secretary Union Electric Company P.
O.
Box 149 St. Louis, Missourt 63166 UE is not owned, controlled, or dominated by any alien, foreign corporation, or foreign government.
4.
CLASS AND PERIOD OF LICENSE APPLIED FOR UE is ammending its application for a class 103 Operating i
License for a period of 40 years for the units described in Section 6 below.
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5.
ADDITIONAL LICENSES APPLIED FOR UE requests such additional source, special nuclear, and by-product material licenses as may be necessary and appropriate to the operation of the plant.
6.
DESCRIPTICM AND USE OF THE FACILITY UE proposes to build and operate two nuclear generating
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units at the Callaway Plant site.
Each unit will utilize a
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pressurized water reactor designed by Westinghouse Electric Corporation.
Each reactor will have an initial nuclear output of 3411 MW thermal and'an additional non-nuclear output of 14 MW thermal.
Each unit will produce approximately 1150 MW of electricity at full power.
Callaway Plant it located in Callaway County, Missouri, approximately 10 miles sottheast of Fulton, Missouri, and 5 miles north of the Missouri Riv9r.
Additional details concerning the plant and site are contained in the Final Safety Analysis Report and the Environmental Report, which constitute part of this application.
The facility will be used primarily for the generation of electricity.
7.
FINANCIAL QUALIFICATIONS The financial information required by 10 CFR 50.33(f) for operating license applications will be supplied by June, 1981.
A copy of the UE's 1978 annual report is included herewith a3 Exhibit 1.
8.
EXPECTED OPERATION DATE
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The expected fuel load date for Unit 1 of the callaway Plant V
is Apr.1, 1982.
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SNUPPS-C 9
REGULATORY AGENCIES, A)
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The regulatory agencies which have jurisdiction over UE's rates and services are:
Missouri Public Service Commission P.O. Box 360 Jefferson City, Missouri 65102 Iowa State Commerce Commission Valley Bank Building 4th and Walnut Street Des Moines, Iowa 50319 Illinois Commerce Commission 527 East Capitol Avenue Springfield, Illinois 62706 Federal Energy Regulatory Commissior.
825 North Capitol Street, N.E.
Washington, D.C.
20426 10.
NEWS PUBLICATI_ONS, The following is a list of news publications (including frequency of publication) and their addresses, which circulate in the
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area where the Callaway Plant will be constructed and operated k,_,}e (Callt.way County and the six adjoining counties).
Advertiser-Courier (Weekly) 136 East 4th Street Hermann, Missouri 65041 Centralia Fireside Guard
'"sekly) 118 West Sneed Centralia, Missouri 65240 i
Columbia Missourian (Daily) 311 South 9th Street Columbia, Missouri 65201 Columbia Tribune (Daily) 701 Cherry Street Columbia, Missouri 65201 Kingdom Daily News (Daily) 307 Court Street Fulton, Missouri 65251 Mexico Evening Ledger (Daily)
Mexico, Missouri 65265
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SNUPPS-C Montgomery Standard (Weekly) f'~3 Montgomery City, Missouri 63361
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News-Tribune (Daily) 210 Monroe Street Jefferson City, Missouri 65251 Cptic-News (Weekly)
Wellsville, Missouri 63384 Osage County Observer (Weekly)
Linn, Missouri 65051 Sun-Gazette (Daily) 5th and Ravine Streets Fulton, Missouri 65251 Tri-County Publications (Weekly)
Belle, Missouri 65013 Unterrified Democrat (Weekly)
Linn, Missouri 65051 The following are considered appropriate news publications in the area of UE's-St. Louis headquarters.
St. Louis Globe-Democrat (Daily)
{~%gi 12th Boulevard at Delmar
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St. Louis, Missouri 63166 St. Louis Post-Dispatch (Daily) 900 North 12th Boulevard St. Louis, Missouri 63166 Suburban Journals 677 New Ballas Road St. Louis, Missouri 63141 11.
RESTRICTED DATA This Application does not contain any restricted data or other defense information.
12.
COMMUNICATIONS REGARDING APPLICATION For the purpose of this section, the term " Power Block" will include the reactor building. turbine building, auxiliary building, fuel building, radwaste building, diesel-generator building, control building, and all systems and equipment within these buildings.
A.1.
All communications to UE pertaining to
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the structures, systems, and equipment within the s
j Power Block, including NRC inspections of vendors, to
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first core fuel, to Seismic Category I structures, b
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SNUPPS-C
()N systems and equipment outside the
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Power Block, and to other facilities generic to SNUPPS plants; and 2.
All communications to UE pertaining to site studies and development, to the design and procurement of non-Seismic Category I structures, systems and equipment outside the Power Block, to construction, and to other subjects not-generic to the SNUPPS plants; and B.
All communications pertaining to financial matters; and C.
All communications pertaining to the Security Plan shall be sent to:
D.
F. Schnell Manager-Nuclear Engineering Union Electric Company P. O. Box 149 St. Louis, Missouri 63166 Gerald Charnoff, Esq.
Shaw, Pittman, Potts & Trowbridge bO36 Washington DC
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J.
E. Birk Assistant to the General Counsel Union Electric Company P.
O. Box 149 St. Louis, Missouri 63166 D.
In addition, it is requested that one copy of each communication 4
described above in "A.1,"
"A.2,"
and "B" be sent to the following:
Mr. Nicholas A.
Petrick Executive Director, SNUPPS 5 Choke Cherry Road Rockville, Maryland 20850 I
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SNUPPS-C l
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Communications to the Commission on the subjects described i
above in "A.1" shall be and are hereby authorized to be
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' signed by the Executive Director of SNUPPS on behalf of UE.
Respectfully submitted, l-UNION ELECTRIC COMPANY By ryan i-on ice Presiden 1
l Nuclear 4
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(10.15 IS'.
SNUPPS-C
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STATE OF MISSOUltI CITY OF ST. LOUIS John K.
Bryan, of lawful age, beinq first duly sworn upon oath says that he in Vice President-Nuclear and an of fice r of Union Electric Company; that he han read the foregoing appl icat ion and known the content thereof; that he han executed the nan e for and on behalf of nald company with full power and authority to do so; and that the facts therein ntated are true and correct to the bent of hin knowledqe, information and belief.
BY
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ice Prenident Nuclear SUBSCRIBED and sworn to before me this 19 t l.
day of October, 1979
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The Annual Meeting of Stockholders
- The Company's Dividend 4, * 'l willconvene at 10 g.m. T
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Reinvestment and StocKPurchqse
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Plan provides commqfistockholders.
. April.24.1979 at the Alfonso J.
y 1 CervantesConventionandExhibition andemployeestheopportunityto -
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._ purchaseedditionalCQmmon stock J ' @ St. Louis.. Missouri. g Plaza..
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Stockholders and employees may e.
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obtairyinformation regarding the
- Company's. Dividend Reinvestment.
and Stock Purchase Plan bywriting to:
y Union Electric Company.
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.', Stockholder Records Divi
- ;51ATINENT IFPIUCT e.o. sox i4 s-h
- St. Louis, Missourt 63166.
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- ;We are a; business enterprise-W
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. on tile skill.: courtesy. arid loyaltyof-
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investors;andon theabilityof our g. -for the electric power' requirements, 9~ [
+ management to forecast and. provide l
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In the conduct of our-business.we g.
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- will render service of the9tighest
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quality to ourcustomers-promptly, I
4 Mear 1978 6-H.* courteously;and efficiently-at the.
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Icwest prices consistent with paying J
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- fairwages.and affordingJobsatisfao-
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- f. Management's @'of W ions [ (([)$[26
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- prpviding modem facilities for our customers expanding needs for Statisticai osa.
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.r.etric serviceano paying spir arcers and '... W Sack h
- retum to our investors who hRve Di W ors..
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- As a private. enterprise entrusted 4 with an essential public service, we.
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. - thecommunities we. serve.
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- --which fulfill that goal.. ;for we 7
believe this is 60th good citizenship i
I and good. business.)
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HIGHUGHTS Year Ended Annual Change December 31,1978 Current Year 10-Year Average Earnings per Average Common Share.
$ 2.01 20.4 %
3.8 %
Dividends per Common Share.
$ 1.40 2.9 1.6 Common Shares Outstanding (Average).
48.260.50C
~.0 7.2 Average Common Stock Equity.
$ 768.297.000 3.2 10.3 i
Residential Kilowatt-Hour Sales.
7.670.000,000 3.8 64 Total Kilowatt-Hour Sales.
2 617.000,000 1.9 4.3 l
Price per Ton of Coal.
$ 24.15 35.2 17.7 Coal Burned (Tons).
11.866.000 91 Interest on Debt.
5 90.309.000 8.0 13.3 Total Indebtedness.
$ 1.273.552.000 5.1 8.0 Consumer Prices 19671978 MEDICAL CARE-UP 119%
FOOD-UP 111%
HOUSING-UP 103%
CONSUMER PRICE INDEX-UP 95%
TRANSPORTATION-UP 86%
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ELECTRICITY-UP S2%
0 10 20 30 40 50 60 70 80 90 100 110 120 Source: U.S Department of Commerce,except for ' Electricity" which indicates Union Electric Company's average residential price per kilowatt-hour.
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TO UUR STlCKHW ERS 1978 was a good year-earnings the 110-day United Mine Workers' proud of our record in fulfilling that F
were up, dividends were increased, coal strike, events which impacted obligation. While such task has never cnd our customers continued to adversely on electric service in beca casy. We recognize that its enjoy dependable electric service some other areas of the country, and achievement in the f uture is Common stock earni.gs for the by the severe ice storm that endangered by governmental struck the St. Louis area on policies on rate fixing, on year were $96.9 millio i, or $2.01 per December 31,1978.
environmental matters. and on share, which was a sitaificant improvement over the $1.67 per it is the nature of our business to economics generally.
share earned in 1977.
reflect in a significant manner the Of course, rate regulat:on and its Reflecting these record earnings.
Comfort standard of our customers direct effect on our financial health the quarterly common stock And while the industrial portion of is an acknowledged fact of utihty dividend was increased from 34 cents our customers-in the overall-hfe For us. this is largely e State to 36 cents per share elfective in showed little progress for the year.
matter. Since in last year's Annual the third quarter of 1978, bringing chiefly occause of the coal stnke Repo.1 we spoke at length on the the annual dividend rate to $1.44 and the absence of new industry subjec. of rate regulation, we will per share, in our service area, most of our not here reiterate it. Suffice it to say customers-as represented by the that inflatio1 has increased The high level of earnings for the msMal segmenFenjoyed in s@nkanW h Wency d h year was due primarily to the 1978 a record usage of electricity need for adequate rate increases improved relationship be; ween rates-At the same t me, this circumstance Since it is obvious that no one is charged and costs-incurred as a required to use more electricity than has heightened the debihtating effect tesult of rate increases of approxi-he did in the past, the increased use of a regulatory pohcy which mately 550 million authorized in of electricity by residential customers habitually awards less rate relief 1978. Additionally. kilowatt-hour evidences a voluntary choice of the than is called for by the facts of the sales to indusinal customers were up conveniences and comforts af forded case Such policies in the case of 1 per cent and sales to residential by electric energy. It is, in every Union Electric and most utihties in customers were up 4 per cent sense, a s@nMcant manifestahon of h anW haw hased h producing an overall increase in the customers' recognition of the market price of common stock to a kilowatt-hour sales of 2 per cent value of electricity.
point below its bookvalue inevitably.
For our customers, the avail-this is a situation which is hazardous Thus the record shows that 1978 ability of reliable electric service to the future supply of electricity-for was a good year for Union Electnc's in 1978 was an important asset, even capacity expansion requires capital investors and customers As much though, understandably, the as we might prefer to confine our attraction and capital is not generally appreciation of such fact may have attracted to cc npanies and industries letter to that record and its good been lessened by our fine record of suffering from impaired credit news. to do so would be incomplete service rehability. Actually. the because, in out opinion it is standings customer's conscious awareness of essentic! that the current state and As dif ficult as it has become in dependabihty was undoubtedly trend of governmental regulations recent times, we are accustomed heightened by the circumstances and attitudes be widely broadcast to rate regulation. Environmental of the harsh winter of 1977-78 and and understood-for they pose a real regulation, on the other hand. is a and menacing threat to the f u; pre much newer concept and lacks the The goal and objective of Union history and established pnnciples Electric-the very purpose for which which give some assurance in the we exist-is to provide reliable rate ama As mported in previous Annual Reports, it has appeared on electric service to everyone who wants it in our service area. We are many occasions that environmental regulations would be imposed on the Company without regard to their effects on economics or on service standards k
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All of the Company's generating should they not be approved, the old Today, interest rates and all money plarts meet the established quality standards would apply and it would costs areat record highs, a fact which standards for ambient air (the ground probably be necessary to shut down reflects the lessened value of money.
l level air people breathe) with respect part of the Labadie and Sioux This results in an unnecessarily high l
to sulfur dioxide. Although our generation and purchase expensive cost for utility construction--and will l
Labadie and Sioux plants have not replacement power from other inevitably produce much higher met the previously established utilities.
electric rates Inflation can benefit i
sulfur dioxide standards for emissions Without question, rate regulation no one.
at the top of the stack, the plants have and environmental regulation are in summary, we had a good year been operated under short-term serious matters having direct effects in 1978. The hill to the future, variances granted by the authorities.
on the future supply of electricity.
however, is steeper. We believe that Recently, however, Missouri officials However, in our opinion, the the time has come for everyone to approved new permanent emission unbridled infla3on of our day, exert such influence as he possesses standards with which the Company although it is neither as direct nor as to correct the serious and menacing can comply by blending low-sulf ur exclusive a problem for electric situations that loom ahead We
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Westen. coal with the Illinois coal utilities, poses a much more serious pledge to do our part.
normally utilized at those plants.
and pervasive threat to our future.
While the additional cost for the Western coal is estimated at 540 t inflation, of course, is a national 550 million per year. it is well below roblem. More accurately, it is a roblem of the FederalGovernment.
the 5175 million per year which it.is simply the cheapening of money.
would have been required to comply with the prior emission standards.
R is accomplished by the over-d.4-A/
expansion of the money supply, an
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Atthough, these nes. iAissoun event spurred on by the government's CharlesJ Dougherty emission standards for Labadie and deficit-spending habits-Sioux plants must be approved by the President and 1.S. Environmental Protection Wage and price controls-voluntary Chief Executive Officer Agency (EPA; we believe it or mandatory-cannot stop inflation significant that the EPA generally because high wages and prices are me eMed not me muse In all of supported adoption of the new standards,n the Missouri history-without exception-wage February 21,1979 i
and price controls have never St Louis, Missouri proceedings. Moreover, the approval of the new Missouri standards by the worked, nor can they. Unfortunately, until the Federal Government is EPA is extremely important because, w Iling to meet the problem of money
- q supply, we will continue to reel under the accelerating pace of inflation.
4 All of us-individually and
%N collectively-are the victims of inflation. None of us can escape its effects in a special way, however, electric utilities are particularly IFc vulnerable to the harmful effects of inflation. Quite clearly, society today aD is dependent on electricity to an yT ever-increasing degree-a situation 6
which requires expansion of electric, utility facilities And, significantly, because the electric utility industry is the most capital-intensive business there is, the cost of capital to us is more important than it is to any other industry.
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i THE YEAR 1978 i
Earnings Per Share exceptionai 8 per cent iricrease in additionai 52 miiiion annuai amount 1977. Industri I s les were up i being s ught in the Company's Rise To S2*01 1 per cent, to slightly over 7.7 rates for steam heating service.
billion kilowatt-hours. and commer-Based on interim approvals of the cial sales remained level at 6.3 FERC and the Iowa cases. Union i
Earnings per share during 1978 billion kilowatt-hours in 1978.
Electric has been collecting the were $2.01, an increase of 34 cents Residential sales, however. increased higher rates, essentially beginning in over the previous year.This was a to 7.7 billion kilowatt-hours, a 4 per the second quarter of 1978. subject 20 per cent increase over 1977. in cent gain over 1977.The coal miners' to refund pending final determination contrast to the 10 per cent decline prolonged strike early in the year of the cases. Also pending at year-in per-share earnings in 1977.
obviously had an adverse impact on end were rate increase applications The common stock earnings of industrial and commercial sales in of subsidiary companies aggregating
$96.858.000 for the year primarily 1978.
over $9 million in annual revenues.
reflected a more realistic relation-The tutal electric heating load ship between electric rates charged connected to the Company's system to customers and actual costs increased by 250.000 kilowatts Fuel and the Fuel incurred by the Company.
during the year. Electric heat was Adjustment Clause installed in 33 per cent of all single-
' *""*Sid*""
"S'">"" "d Dividends Increase in 72 per cent of all multi-family Fuel costs are a major and volatile construction in the Company's operating expense of our business.
l In 1978. Union Electric's fuel bill service area.
Quarterlycommon stock dividends were increased from 34 to 36 cents These increases in electric space was $308 million, an increase of $71 per share effective in the third heating installations are important million or 30 per cent over the
. quarter of 1978. bringing the annual because they enable the Company previous year. Increases in the cost ividend rate to $1.44. A!! dividends to utilize, during the winter months, of coal caused by the coal miners
(
.;' aid on common and preferred the facilities which have been built strike were a key factor in the
' stocks during 1978 are fully taxable to serve the high demands of the higher fuel costs.
I as dividend income.
summer air conditioning season.
The fuel adjustment clause is the means by which changes in fuel prices are reflected in customers' electric bills. On February 2.1979, Kilowatt-hour Sales Rate increases the Missouri Public Service Increase Coramission entered an order in February 78, the Missouri Total kilowatt-hour sales were up Public Service Commission Generation Mix 1978 2 per cent in 1978. following an approved an increase in electric rates which was designed to provide i
additional annual revenues of approximately $33 million. This was slightly more than one-half of the a
$65 million originally requested.
Also in February 1978. the Illinois Commerce Commission authorized g
an annual increase in electric rates of approximately 59 million,as compared with the $14M million requested.
At the end of 1978, Company rate cases were pending before the Federal Energy Regulatory Commission (FERC) equal to $15 1
million in annual revenues; the Iowa I
k ilectric heat was installed M. M of State Commerce Commission Coal 93%
the new single-f amily cont J.4 4and amounting to $2% million in annual Hydro 5%
in 72% of the new multhfag 4 construction in the Company's revenues; and the Missouri Public
- ,ervice area last year.
Service Commission,where an Oil 2%
()O.?f3 5
establishmg a new fuel adjustment In the spring of 1979, the reactor charge for Missouri electric utilities.
vessel will be placed in the multi-While changing some details, the new layered steel and reinforced fuel adjustment charge will continue concrete containment building The the basic concept it will apply to all 14b-foot-high walls of the structure classes of customers and will reflect have been completed and the dome-the cost of the fuel component of like roof will be completed as energy generated and purchased soon as the reactor is placed in The Company's present fuel position-adjustment clause continues in At the end of 1978 a total of effect until the new fuel adjustment
$453 million had been spent at charge is determined following a Callaway; and the ultimate cost Commission hearing to be for the two units is estimated at held later this year.
52.5 billion.
During 1978, the Company placed three 55.000-kilowatt combustion Nuclear Fuel turbinc., a service, bringing the sytem's combustion turbine capacity to 414.000 kilowatts On February 12.1979, a contract Located at Jefferson City Moberly was entered into with Western and Mexico. Missouri, these three Nuclear. Inc a major U S uran.ium units represent a $21 million producer, for the supply of six milhon investment and provide increased pounds of uranium to be dehvered rehability for the system.
during the period 1984 the ough 1995.
With this contract. the Company now has secured a sufficient supply of uranium to operate Callaway Security ISSUES Unit 1 through theendof thiscentury. provide Construction Funds Record Amount Spent For Construction The sale of stocks and bonds provided more than $113 million for the Company's construction Construction expenditures in 1978 program in 1978 were a record $323 million Of that amount $230 million was spent on In August. $55 rn:Hion in first the Callaway Plant, and $93 mortgage bonds. bearing an annual interest rate of 9 35 per cent.were milhon was expended for ether So to a group of institutional projects and environmental controls n
Progress continued on the
. In September, the Company Callaway Plant, and at year end.
Unit 1 of the 2 300.000 kilowatt issued 4 million new shares of plant was 27 per cent completed.
common stock. a public sale which The first 1.150,000 kilowatt unit of generated $58 million.
Callaway is scheduled te provide Shareholders continued to benefit electricity for our customers in late from the Company's Dividend 1982. with Unit 2 scheduled for Reinvestment and Stock Purchase operaMn in 1987.
Plan during 1978 The Plan provides Sem al accomplishments high.
an opportunity for shareholders to lighted the construction year at reinvest their dividends in the Callaway. Most significant, perhaps.
Company's stock and to make was enclosure of the turbine /
optional cash payments in any generator building and other major month fer the purchase of additional parts of the plant, which permitted stock-work to proceed indoors during At the end of 1978 more than the winter 21.000 common stockholders were 00M
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represent over 13 per cent of our average of 4 per c ent ana i ire
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11-D at tne come m 19tA an 1985 in Apru 1978 tne Board of
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How ver the ne notes wn;cn Directors elected H C Coheryant a matt n in 1985 can be prepac
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.,.. p.f...3 Cost-of-Service Study M E Gatewoo 4 anc c,* ues n ir In October 1978 iho Bsar
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In 1978 Unio'n Electric c', moietm c
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The cost.,f agr vo stvj3 nas Per sonnel f unc tien,
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Industnal Relanons and Emm w Mtssoun Pubhc Serwe Comm,ss en Re.lanons f unctions,Jr S,a n t er
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On the basis of tne stuay resuus heaas inaustnai Relanons an :
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designed rate scheduies witn tne was promoted to airect of r ]. f.f.g: i '. " #
Comm!sson which Ml conduct Emphxee Relatlons C W M*hr
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. c hearings on the issue danng 19 79 aas eWctro treasu er wri V g ' p,; [ } *Q '. 7. increast the Company s revenue' r
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The proposea new rates wouta not Mr Pienma t
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l PLANNING A t ;DNSTRUCION 1
The future abihty to provide for the nuciear generating plant 1984 the new interconnectons wd growing electnc energy demand was man because our studies provide for increased interctango a requires planning and Construction showed tnat nuclear fuel would electocity with the Midale Soutn many years in advance of the actual provide the safest most economical Utilmes System which !ncludes 'ne I
need in fact governmental red tape and efficient and most environ-Arkansas-Mrssouri Power Compan, has significantly increased the lead mentally-acceptable method of Also this wdl increase rehabd c. x time required to build new electric generating the electncity which wiU southeast Missuun where M:ssa utihty facihties-particularly be requeed Our studies today come Utihties Company a Union Elec".c generating plants Therefor our to the same Conclusion subsidiary it located planning today must sometimes l
begin more than a decade before the facihty is to become operative Interconnections Load Dispatching j
in view of such Iong lead times the Expans. ion planning process necessaniy retains as much flexibihty as possible to ir aadinon to the cependabihty meet changing circumstances of serwce that is derived from the Load Dispatching is tne master Company s own generating facihties control center of Union Elecinc s interConneClions with other systems power operations and is responsiole Generat,ing Fac_ilities and tne abihty they provide for the fo' directrng the flow of powe' interchanae of power greani tnroughout the system in 19'8 enhance tne rehatohty of elecinc plans were completea for a" uhM se eice Currently the m oanded mdtemihen doha toda The longest lead times are required for the construction of Comoan> has tne abany t d%a'ch+ng faahty wn,Ch #
nuclear power plants Tnus tt aas
'ntercnange electnc power ur proude ncreased rehabihN an <
more than 20 otner electoc Wfies more economic operahon of the I
that after several years of intenswe to the north soutn eas' av w st Company s elecincai power syste" nd extensive study the Compan3 in July 1973 announced that it was During 1978 an agreement wat Among other things the new f aciht,
then beg!nning the process of made between Unor E mctnc wdl be ab!e to monitor ana conircl budding-for service in the early Associated EiecP. Cooperatr/e mco Mfechvely power fica and 1980s-the 2-unit nuclear power Inc and Ar kansas-Missoun Power voltages and wiH be capao!e af plant which we now caH Callaway Company to provide add:tional ties demonstrating the effects cn the Plant The 1973 decision to budd ic the south When completed in system of alternahve operating act.ans In addition ex panded microwaw f achties are plannec '.
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l The Callaway Plant construction schedule calls for Unit 1 to begin operation in The 331-ton reacter vessel arnved at the Callaway Plant in October late 1982.
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.m Decisions on the most efficient and econom:c method of provMing electricrty for our customers are made in the I oad Dispatching center
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research and development projects
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from coal This plant wouta use j.,.. ' g ?-$ 'y -
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k l[.fMk__ ( [y f abundantiv-available niah-sulf ur
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qaseous fuel that would be environ-wntally acceptable for power plants
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utilities and the U S Department of
)CN Energy on plans for a compressed-air storage plant This unique 8 /s ie' f F
combustion turbine concept would M.C. '.. g j'j '.,g t."
pump compressed-air underground s
when demand for electricity 's low 1.'
pf W n lo for later use during high aemand
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periods thereby reducing f uM T @.1!!.
f -:. t consumption
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The Residential Insulation i':?yfdO. ?
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- A' cantinued by the Company in 19-'8
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h more than 8100 customers installed insulation as part of the program and 476 of those financed the cost on their eIPctric bill
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1
Responsibility For Financial Ctatements r
The management of Union Electric Company is responsible for the preparation and presentation of the consolidated financial statements included in this Annual Report. The statements consisting of a balance sheet and a statement of long-term debt and preferred stock and the related statements of income, retained earnings, other paid-in capital, and changes in financial position have been prepared in accordance with generally accepted accounting principles consistently applied.
Accounting rules used in the preparation of the financial statements conform to the accounting policies prescribed by the federal and state regulatory commissions having jurisdiction. Other financial information included in this Annual Report is consistent, where applicable, with the consolidated financial statements.
The Company maintains a system of internal accounting controls designed to provide reasonable assurance as to the integrity of the financial records and the protection of assets. Qualified personnel are selected and an organization structure is maintained that provides for appropriate functional responsibility. Written policies and procedures have been developed and are revised as necessary. The Company maintains and supports P.n extensive program of internal audits with appropriate management follow up.
The financial statements have i:een examined by Price Waterhouse & Co..
independent accountants, and their repcrt appears on page 23. We believe that such report expresses an informed opinion as to whether management's financial statements present fairly, in conformity with generally accepted accounting principles, the Company's_ financial position and operating results.
The Board of Directors, through its Audit Committee comprised of outside j
directors, is responsible for ensuring that both management and the independent accountants fulfill their proper respective responsibilities relative to the financial statements. Moreover, the indepenuent accountants have full ano free amass to meet with the Audit Committee, with or without management present, to dir_uss auditing or financial reporting matters.
)
i This report and the financial statements contained herein are submitted for the information of the stockholders of the Company and are not intended to induce, or for use in connection with, any sale or purchase of any securities of the Company, or j
any of its subsidiaries.
t adao g
- 12
~.. _ - -
._m__._
. 3
Cons 31idated Ctat: ment Of Income (Thousands of Dailars)
Union Electric and Subsidiaries Year 1978 Year 1977 Operating Revenues:
Electric.
S844,473
$ 713.036 Gas.
50,150 42.784 Steam.
8,149 8.097 Water.
1,216 1.185 Total operating revenues 903,988 765.102 Operating Expenses:
Operations Fuel and purchased power.
256,894 186.954 Other.
143,482 135.135 400.376 322.089 Maintenance.
68,012 61,191 Depreciation.
73,477 68.814 income taxes.
80,366 58.533 Other taxes.
105,525 95.336 Total operating expenses 727,756 605.963 Operating income 176.232 159.139 Other income:
Allowance for equity funds used during construction.
15,980 8.301 Miscellaneous. net.
2,896 1.389 Total other income 18,876 9.690 Income Before Interest and Other items 195,108 168.829 interest and Other items:
Interest on debt.
90,309 83.624 Allowance for borrowed funds used during construction.
(15,489)
(10.721)
Preferred dividends of subsidiar'es.
390 391 Total interest and other items 75,210 73.294 Net income 119,898 95.535 Preferred Dividend Requirements of Company 23,040 20.367 Earnings on Common Stock S 96,858 5 75.168 Earnings per Share of Common Stock (based on average shares outstanding)
$2.01
$ 1.67 Dividends Declared per Share of Common Stock S1.40
$ 1.36 Average Number of Common Shares Outstanding 48,260,596 45.110.245 See Notes to Financial Statements on pages 20,21and 22.
f q\\
0033.
13
CORSOllilatetl BalanCS Slieet ' (Thousands of Doiiars) i December 31, December 31, Union Electric and Subsidiaries 1978 1977 Assets Property and Plant, at original cost: Electric.
S2,651,602
$ 2.567,322 Gas.
61,609 59.611 Steam.
10,038 10.054 Water.
6,683 5.017 Other.
18,913 17.998 2,748,845 2.660.002 Less accumulated depreciation.
725,448 662.516 2,023,397 1.997.486 Construction work in progress (includes nuclear fuel of $35.215 and $32.320.
at respective dates).
517.677 293.843 Total property and plant net 2,541,074 2.291.329 Investments, at cost 3,679 3.530 i'
Deferred Charges:
Generating station construction abandonment.
7,114 8.893 Interest 6.712 Unamortized bond defeasance cost.
5,236 5.438 Unamortized debt expense.
2,776 2.692 Other.
459 918 Total deferred charges 15,585 24.653 Current Assets:
Cash.
5,188 6.764 Deposits for payment of interest. and other deposits.
7,342 7.533 Accounts receivable-trade (less allowance for doubtful accounts of
$939 and $930 at respective dates).
75,072 59.100 Unbilled revenue.
38,346 32.569 Other accounts and notes receivable.
3,520 2.643 Materials and supplies, at average cost-Fuel.
69,198 59.426 Construction and inaintenance.
25,888 23.541 Recove.able fuel costs.
9,436 5.966 Prepayments and other assets.
5,881 4.127 Total current assets 239,871 201.669 S2,800,209
$2.521.181 See Notes to Financial Statements on pages 20. 21 and 22.
Y 00 7
December 31, December 31.
Union Electric and Subsidiaries 1978 1977 Capitaiand Liabilities Capitalization:
Common stock and Common stock, $5 par value, authorized retained earnings 75.000.000 and 60.000.000 shares.
at respective dates; outstanding 51.909.270 and 46.811.805 shares, at respective dates (excluding 42.990 shares at par value in treasury).
S 259,546
$ 234.059 Other paid-in capital, principally premium on common stock (see accompanying statement).
328,573 280.187 Retained earnings (see accompanying statement).
247,901 218.865 836,020 733.111 Preferred stock Preferred stock, including premium of
$ 1.571 (see accompanying statement) 322,447 322.473 Total capital stock and retained earnings 1,158,467 1.055.584 Long-term debt Long-term debt (see accompanying statement).
1,237,576 1.187.640 Unamortizeo premium and discount on t
debt.
1,284 1.440 Total capitalization 2,397,327 2.244.664 Accumulsted Deferred Taxes on income 95,507 69.410 Accumulated ?. serted Investment Tax Credits 55,647 33.612 Current Liabilities:
Current maturity of long-term debt.
5,092 105 Accounts payable.
79,177 46.001 Wages payable.
13,144 11.744 Bank loans.
14,400 9.050 Commercial paper.
15,200 14.000 income taxes accrued.
53,691 30.667 Other taxes accrued.
13,592 13.278 Interest accrued.
26,736 24.297 Dividends declared.
5,833 6.135 Other current liabilities.
24,863 18.218 Total current li Abilities 251,728 173.495 S2,800,209
$2.521.181
'1,)
0033 15
LOng-Term Debt And Preferred I tock (Thousands of Doiiars)
Dec mber 31 December 31.
Union Electric and Subsidiaries 1978 1977 Long-Term Debt:
~ Union Electric Company 2%% Series due 1980.
S 25,000 25.000 First mortgage bonds-3%% Series due 1982.
30,000 30.000 see note (a) 3%% Series due 1986.
40,000 40.000 4%% Series due 1988.
35,000 35.000 4%% Series due 1990.
50,000 50.000 4%% Series due 1991 30,000 30.000 4M% Series due 1993.
30,000 30.000 4M% Series due 1995.
35,000 35,000 SM% Series due 1996.
30,000 30.000 SM% Series due 1997 40,000 40.000 7% Serios due 1998.
50,000 50.000 7%% Series due 1999.
35,000 35.000 8M% Series due 1999.
40,000 40.000 9% Series due 2000.
60,000 60.000 7%% Series due 2001 50,000 50.000 7%% Series due 2001.
50,000 50.000 8M% Series due 2001.
60,000 60.000 8%% Series due 2004.
70,000 70.000 10M% Series due 2005.
70,000 70.000 5.80% Series due 1992 to 2005.
27,085 27.085 8%% Series due 2006.
70,000 70.000 8%% Series due 2007.
60,000 60.000 9.35% Series due 2008.
55,000 Unsecured bank notes-see note (b) 12.3% Due 1985.
75,000 75.000 Missouri environmental improvement revenue bonds Series 1974, interest rates averaging 6.21% due 1989 to 2004.
16,500 16.500 Total Union Electric Company 1,133,585 1.078.58f j
Missouri Power & Light Company 2%% Series due 1979 -
2.000 First mortgage bonds-3%% Series due 1984.
7,500 7,500 see note (a) 44% Series due 1992.
6,000 6.000 10%% Series due 1994.
7,000 7.000 5%% Series due 1996.
5,000 5.000 5%% Series due 1997.
5,000 5,000 8% Series due 1999.
5,000 5.000 9%% Series due 2001.
12,000 12.000 7K% Series due 2003.
7,000 7.000 Total Missouri Power & Light Company 54,500 56.500 Missouri Utihties Company 3%% Series due 1979.
500 First mortgage bonds-3%% Series due 1979.
1.000 see note (a) 4% Series due 1979.
1.000 5%% Series due 1984.
1,000 1.000 4M% Series due 1988.
3.000 3.000 5%% Series due 1991 3,500 3.500 8%% Series due 1996.
10,000 10.000 7.95% Series due 1998.
4,000 4.000 9%% Series due 2001 6,000 6.000 Unsecured notes-due in equal annual installments 6% Due 1992.
2,450 2.555 Total MissouriUtilitiesCompany 29,950 32.555 Missouri Edison Company 11%% Senes due 1990.
4,700 5.000 First mortgage bonds-5% Series due 1991 2,000 2.000 see note (a) 4%% Series due 1995.
3,000 3.000 9%% Series due 2001 3,826 4.00C 8M% Series due 2002.
6,000 6.000.
Unsecured notes-due in eaual annual installments
~ ~M% vae 1981.
15 Total Missouri Edison Company 19,541 20.000 Totallong-tcrm debt S1,237,576
$ 1.187.640 h
w, com
December 31 December 31.
1978 1977 Union Electric and Subsidiaries
' reference Stock:
Jnion Electric Company Preference stock, $1 par value (er. titled to cumulative dividends), authorized 7.500,000 shares-none outstanding Preferred Stock:
Union Electric Company Stated value of shares outstanding, Preferred stock, without par
$100 per share-value (entitled to cumulative
$7.44 Series-550.000 shares.
S 55,000
$ 55.000 dividends), authorized
$ 6.40 Series-300,000 shares.
30,000 30.000 15,000.000 and 7.500,000
$4.56 Series-200.000 shares.
20,000 20.000 shares, at respective dates
$4.50 Series-213,595 shares.
21,359 21.359 t
$4.00 Series-150,000 shares.
15,000 15.000
$3.70 Series-40,000 shares.
4,000 4,000
$3.50 Series-130.000 shares.
13,000 13.000 Stated value of shares outstanding.
$97.50 per share-
$8 00 Series of 1971-425.000 shares.
41,437 41.437 Str2ted value of shares outstanding.
$92.25 per share-58.00 Series-350,000 sharss.
32,288 32.288 Stated value of shares outstanding.
$25.00 per share-
$ 2.72 Series-1.600.000 shares.
40,000 40.000
$2.125 Series-1.600.000 shares.
40,000 40.C00 Total Union Electric Company 312,086 312.084 Missouri Power & Light Company Outstanding-Preferred stock, $100 par value 4.30% Series-20,000 shares.
2,000 2.000 (entitled to cumulative 3.90% Series-40.000 shares.
4,000 4.000 dividends), authorized 75,000 shares Total Missouri Power & Light Company 6,000 6.000 Missouri Utilities Company Outstanding-Preferred stock, $100 par value 5%
Series-14.000 shares.
1,400 1.400 (entitled to cumulative 5%
Series of June 1950 -1,500 dividends), authorized 50.000 shares...
150 150 shares 5%
Series of September 1950-1,500 shares.
150 150 5.70% Series-10.920 and 11.180 shares at respective dates.
1,092 1,118 Total Missouri Utilities Company 2,792 2.818 Missouri Edison Company Preferred stock, $100 par value (entitled to cumulative dividends), authorized 5,000 shares-no:1e outstanding S320,876
$320.902 Total preferred stock (a) At December 31,1978 substantially all of the property and plant was mortgaged under. and subject to tiens of. the respective indentures pursuant to which the bones were issued.
(b) On August 22.1978, the Company issued $75,000.000 of unsecured bank notes due December 31,1985 to repay the bank notes due in 1979 The interest rate on the new notes is cased on 105% of the bank prime interest rate through December 31,1979,112% through December 31,1983 and 115% thereafter.
11 See Notes to Financial Staments on pages 20, 21and 22.
1 Consolidated Etatement Of Changes In Financial Position (Thousands of Doiiars)
Union Electric and Subsidiaries Year 1978 Year 1977 Source of Funds:
From operations-
, tincome S119,898 5 95.535 Provision for decreciation 73,477 68.814 Provision for deferred taxes on income (net).
26,097 25.239 Provision for deferred investment tax credits (net).
22,035 23.965 Allowance for all funds used during construction.
(31,469)
(19.022) 210,038 194.531 Dividend reinvestment and stock purchase plans 15,793 11.899 issueof mortgage bonds 55,000 93.085 Issue of preferred stock 40.000 Issue of common stock.
58,080 75.000 Issue of restructured long-term unsecured notes.
75,000 Additional short-term bank loans and commercial paper.
6,550 Total funds provided S420,461 5414.515 Application of Funds:
Gross plant expenditures.
4323,292
$240.433 Allowance for all funds used during construction.
(31,469)
(19.02; Union Electric dividends on preferred stock and common stock -
90,616 82.120 Restructured long-term unsecured notes 75,000 Defeasance of environmental
- mprovement revenue bonds.
22.000 Reduced short-term bank loans and commercial paper 43.950 Change in deferred charges.
(9,068) 6,087 Net change in working capital (excluding short-term loans and current maturity of long-term debt).
(28,494) 42.644 Net change in other f unds 584 (3.697)
Total f unds applied
$420,461
$414.515 Changes in Components of
" Working Capital"-
Cash and deposits.
S (1,767) 260 Receivables. net 22,626 10.122 Materials and supplies.
12,119 18.490 Recoverable f uel costs.
3,470 (920) l Accounts and wages payable.
(34,576) 2.743 Taxes accrued (23,338) 9.365 Interest and dividends accrued or declared.
(2,137)
(1.463)
Other (4,891) 4.047 S(28,494)
$ 42.64.
See Notes to Financial Statements on pages 20. 21and 22.
00 %
y 18
.- -.n
Consolidated Ctatement Of Retained Earning 3 (Thousands of Doilars) i Union Electric and Subsidiaries Year 1978 Year 1977 Balance at Beginning of Period S218,865
$207.190 Add:
Net income.
119,898 95.535 338,763 302.725 Deduct:
Preferred stock dividends.
23,040 20.792*
Common stock dividends-$1.40 and
$1.36 per share, respectively.
67,576 61,328 Write-off capital stock expense.
246 1.740 90,862 83.860 Balance at Close of Period (Under the mortgage indenture of Union Electric Company as amended, free and unrestricted retained earnings at December 31,1978 amounted to
$194,104)
S247,901
$ 218.865
- Includes dividends of $425.000 declared in 1977 applicable to a subsequent period.
Consolidated Statement Of Other Paid-in Capital (Thousands of Dollars)
Union Electric and Subsidiaries Year 1978 Year 1977 Balance at Beginning of P1riod
$ 280,187
$ 222.038 Add:
Excess of sales price over par value of 4,000.000 and 5.000.000 shares of common stock issued in 1978 and 1977, respectively.
38,0!h 50.000 Excess of sales price over par value of 808,379 and 615.837 shares of common stock issued during 1978 and 1977, respectively, for dividend reinvestment and sic ck purchase plan 7,446 6.460 Excess of sales price over par value of 289,086 and 153.892 shares of common stock issued for tax reduction act stock ownership plan in 1978 and 1977, respectively.
2,860 1.591 Excess of acquisition cost over par vaiue of 7,727 shares of common stock issued during 1977 in exchange for Missouri Utilities Company 1
common stock.
08 3alance at Clos of Period 1
S328,573
$ 280.187 See Notes to Financial Statements on pages 20,21and 22.
()OdA 19
Notes TO Financial Etatements Union Electr " - vubsidiaries Note 1-Summary of Accounting Policies The Company and its utility subsidiaries are subject With respect to all property additions after 1974 and to regulation by the Missouri Public Service Commis-prior additions in Illinois, the reductions in taxes sion, Illinois Commerce Commission, Iowa State Com-applicable to the liberalized depreciation methods merce Commission and the Federal Energy Regulatory described above are accounted for as deferred income Commission of the Department of Energv The taxes and amortized over the estimated useful lives of accounting policies of the compnk : are in accordance the related properties. In addition, the Company with the rate-making practicas ci the regulatory normalizes the income tax effects of the debt component authorities having jurisdiction and, as such. conform to of the allowance for funds used during construction, generally accepted accounting principles as applied to and taxes, pensions and other expenses capitahzed.
regulated public utilities. A description of the as well as the repair allowance which h %en Company's significant accounting policies follows.
chimed for years after 1974.
Principles of Consolidation
'he Company has elected to defer the additional The consolidated financial statements include the ir.sestment tax credit benefits resulting from the Tax accounts of the Company and all of its wholly-owned Reduction Act of 1975 with respect to properties in all subsidiaries. In the process of consolidation all states, and is amortizing the deferrals over the intercompany investments and accounts and all inter-estimated useful lives of the related properties The company sales and profits are eliminated.
Company is continuing to flow-through to income the 4 % investment tax credit on Missouri arid towa properties Property and Plant which are not qualified progress expenditures under the The cost of additions to and betterments of units of property and plant is capitalized. Cost includes labor. material, applicable taxes pensions and certain Allowance for Funds Used During Construction other items, plus an allowance for funds used during The Federal Erergy Regulatory Commission construction. Maintenance expenditures and renewals Uniform System of Accounts defines allowance for 7
of items not considered to be units of property are funds used during construction (AFC). which is a b}
charged to income as incurred When units of non-cash item. as the net cost for the period of depreciable property are retired the original cost construction of borrowed funds used for construction and removal cost, less salvage, are charged to purposes and a reasonable rate on other funds accumulated depreciation when so used.
Deprrelation During 1978 and 1977, the Company recorded AFC For financial statement ?urposes, depreciatior is at various rates, compounded semi-annually. The net provided over the estima'ed lives of the various classes rates reflect the Company's policy of deferring the of depreciable proper 9 by applying composite rates on income tax effect apphcable to the borrowed funds a straight-line basis The provisions for depreciation in portion of the AFC rate. The resulting average annual 1978 and 1977 were equivalent to approximately 2.7%
AFC rates were: 1978-8 65% (6.55% net); 1977-8.30%
(6.00% net).
of the average depreciable cost.
Income Taxes n
es h a W For income tax purposes. the Company computes C
un me an also N depreciation using the most liberalized methods a
a s.
allowed by the Internal Revenue Code. Net depreciable maw M Costs property and plant used in this computation excludes Fuel cost adjustment rid % to !% Company's tariffs costs (primarily the allowance for funds used during construction. taxes, pensions and certain other items) are n effect for virtually ah electoc' customers. Due to the lag in application of such fuel riders, the Company which are charged to property and plant for financial is deferring the effect net of related income taxes, statement purposes but treated n expenses when on costs arising from the fluctuation in the costs of fuel incurred for incom> tax purposes.
to the penod when such amounts are billed to electnc customers The deferral obtains a proper matching of costs and revenues.
00 @
20
Note 2-Income Taxes Note 3-Retirement Plans Total incori.o hx expense is less than the amount The retirement plans covering employees of the computed by mv plying the income-before-tax by Company and its subsidiaries are financed through the statutory Federal income tax rate. The reasons for irrevocable pension trusts and group annuity contracts.
this difference for the years in which shown are as The policy is to fund pension costs accrued. Costs of follows (in thousands):
the retirement plans for the years 1978 and 1977 were 1978 1977
$9.166.000 and $8.862.000, respectively of which approximatciy 20% was charged M construction ac-Tax computed at statutory rateon counts. The aforementioned amounM include prior book income-before-tax.
S95,788
$73.754 service costs which are being amortiz9d over twenty increases (Decreases)in tax from:
years. At December 31,1978, the unfunded prior Additional depreciation.
(1,560)
(3.977) service costs are estimated to be $24.C00.000 and the Allowance for equity funds actuarially computed value of vested benefits exce'. ded used during construction.
(7,940)
(4.2J.i) the fund (valued at market) by approximately Investment tax credits.
(2,231)
(5.843)
$ 16.000.000.
Dismantling costs.
(2,173)
(1,794)
Capitalized costs.
(462)
(641)
Note 4-Compensating Balances and Miscellaneous, net.
(1,763) 824 Short-Term Borrowings Total.
S79,659
$58.118 Short-term borrowings of the Company and its subsidiaries consist of bank loans (matunties not in income tax expense components excess of 270 days) and commercial paper (maturities (in thousands):
generally within 30-45 days). Information regarding included in opera.ing expenses-such consolidated short-term borrowings is as follows Taxes currently payabe:
(in thousandsof dollars):
Federal..
S24,026 5
685 1978 1977 State.
4,4 6 3.76G Deferred taxes Amounts outstanding (principallyFederal):
at year end-Bankloans.
S14,400
$9.050 Liberalizeddepreciation.
10,988 10,483 Commercialpaper 515,200
$ 14,000 Repair allc wance.
6,792 5.194 Other(principally mposde Mtmest rates at year end-capitalized costs).
11,261 11,127 Provisions deferred in Bank loans.
11.5%
7.8%
mmacialpapa 10.8%
6.9).
prior years.
(2,944)
(1,565)
Deferred investment tax Maximum aggregate amount outstanding credits, net.
25,798 28.843 at any month end 80,366 58.533 during the year.
S101,540
$89.900 Current provision included Average daily short-in other income-term borrowings miscellaneous net.
(707)
(415) outstanding during Total.
S79,659
$58.118 the year-Aggregate amount
$42,321
$60.030 Weighted com-posite interest rate.
7.6%
5.8%
3-i D939 A>
21
Notes To Financial Etatements (cortinued)
Union Electric and Subsidiaries Note 7-Contingencies The above waighted composite interest rates were As explained in the President's letter on page 3. a calculated by dividing the applicatie interest expense recent change by the State of Missouri to less stringent for the year by the average daily short-term borrow-sulfur dioxide emission standards will become ings shown above.
effective if approved by the U.S. Environmental At December 31,1978. the Company and its subsid-Protection Ager'cy. Under these revised standards. the iaries had bank lines of credit aggregating 5101.670.000 Company estimates that compliance would add $40 to which make available interim financing at the prime
$50 million to annual operating costs. Should the EPA rate of interest. In support of such lines of credit, the not approve the revised standards, the Company Company has unwritten agreements with the majority estimates that compliance with the more stringent of its lending banks to maintain average compensating standards, previously approved by the EPA. would add balances equivalent to 10% of the line of credit plus
$175 million to annual operating costs or it may be 10% of the borrowings outstanding. as determined necessary to shut down part of the generation of two from bank records In addition, at December 31,1978, major plants and purchase replacement power from the Company had commitments from banks aggregat.ng of her utilities
$15.000.000. which expire August 3*.1979. The Cor pany pays a fee of 0 375% on tite unused portions Note 8-Selected Quarterly Information of the commitments-(Unaudited)
In the opinion of the Company. the summarized Note 5-Property Abandonments data as shown under " Selected Quarterly information" In late 1974. the Company cance: led its plans to for the yeara 1978 and 1977 on pages 28 and 29 of this construct two electric generating units which had i een report :ncludes all adjustments, consisting only of scheduled for completion in 1979 and 1980 and normal recurring adjustments. necessary for a fair announced plans to construct instead oil-fired com statement of the results for the perioda bustion turbine peaking capacity. Negotiations of Due to the e'fect of weather on sales and other e
cancellation charges on construction contracts were factors which are characteristic of electric utility completed in 1976 and these costs, when combined operations, financial results for interim periods are with construction costs related to the cancelled units.
not necessarify indicative of trends for any twelve-aggregated 58.893 0^0. In accordance with instructions month period l
received from regulatory authorities having jurisdiction.
i this amount and the related income taxes ($4,446.000 Note 9-Replacement Cost Information l
net of such income taxes)is being amor1ized over a five-(Unaudited) year period beginning January 1,1978. The unamortized The impact of the rce of inflation experienced in amounts of $7.114.0C0 and 58.893.000 are included recent years, along with environmental and other in Deferred Charges at December 31.1978 and 1977.
regulatory equirements. has resulted in replacement respectively-costs of productive capx sy that are significantly greater than the historical costs of such assets reported Note 6-Construction Commitments in the Company s financial statements In accordance The Company and its subsidiaries are engaged in a with the requirements of the Securities and Exchange construction program under which expenditures of Commission. the Company has computed the estimated approximMely $2.25 billion arr.snticipated during replacernent cost of its productive capacity, and the the next five years, of which expenditures of related effect on depreciation. and this data will be 5415.000.000 and $489.000.000 are estimated to be reported in Form 10-K to be filed with the Commission mada in 1979 and 1980. respectively.
0040 k
22
w Report Of Independent Accountants 4
ONE MEMOntAL DA*vt
{'
ST Louts M'$soupi e3tc2 Iterhouse&' Ca
- > > = =
February 74.1979 To the Stockholders and Board of Directors of Union Electric Company In our opinion, the accompanying consolidated balance sheet and the related consolidated statements of income, long-term debt and pref erred stock, retained earnings. Other paid-in capital and changes in financial position present fairly the financial position of Union Electric Company and its subsidiaries at Decer.ber 31.
s
-1978 and 1977, and the results of their operations and the changes in their financial position for the years then ended. in conformity with generally accepted accounting principles consistently applied. Our examinations of these statements were made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
4 m / d.
0041 g\\
c.
23
Consolidated Summary Of Operations (Thoussnes of Dollars) i Union Electric and Subsidiaries 1978 1977 1976 1975 Operating Revenues:
"1 Electric.
S844,473
$713.036
$635.000
$542.977
,I Gas.
50,150 42,784 38.636 31,388 Steam.
8,149 8,097 7.688 8.136 Water.
1,216 1.185 1,132 954 Total operating revenues 903,988 765,102 S82.456 583.455 Operating Expenses:
Operations Fuel and purchased power.
256,894 186.954 146.071 137.078 Other.
143.482 135.135 118.110 105.597 400,376 322.089 264,181 242.675 Maintenance.
68,012 61,191 54.159 39.995 Depreciation.
73,477 68.814 63.062 56.871 Income taxes.
80,366 58,533 50.896 29.175 Other Yxes.
105,525 95.336 86.044 77.853 Total operating expenses 727,756 605.963 518.342 446.569 Operating income 176,232 159.139 164.114 136.886 Other income:
Allowance far fur.ds used during constructio.'
All funds (prior to January 1.1977).
12,379 23.107 Equity funds (af ter December 31,1976).
15,980 8.301 Miscellaneous, net.
2,896 1,389 (2.554) 1.40T Total other income 18,876 9.690 9.825 24.510 income Before Interest and Other items 195,108 168.829 173.939 161,396 Interest and Other items:
Interest on debt.
90,309 83.624 78.136 74.967 Allowance for borrowed funds used during construction (after December 31,1976).
(15,489)
(10.721)
Preferred dividends of subsidiaries.
390 391 393 394 Total interest and other items _
75,210 73.294 78.529 75.361 Not income 119,898 95.535 95.410 86.035 Preferred Dividend Requirements of Company 23,040 20.367 19.640 19.640 EIrnings on Common Stock S 96,858
$ 75.168
$ 75.770
$ 66.395 E;rnings per Share of Common Stock (based on average shares outstanding).
$2.01
$ 1.67
$ 1.86
$1.78 Dividends Declared per Share of Common Stock.
S1.40
$ 1.36
$ 1.34
$1.28 Average Numbar of Common
)
Shares Outstanding.
48,260,596 45.110.245 40.795.152 37.240.134 Return on Average Common
,/i Stock Equity.
12.61 %
10.68%
12.19%
11.9E '
R;tio of Earnings to Fixed Charges (a) 3.18 2.81 2.79 2.51 (a) Earnings consist of net income plus ! axed charges (interest on debt, preferred dividends of subsidiaries and an appropriate arnount of rentals charged to operat6ng expnses' and incorne taxes Note: See pages 26 and 27 for sagement's Analysis of Operations covering the period sincc 1
_ 1974 1973 1972 1971 1970 1969 1968
$443,044 4399,161
$357,606 1325,964
$302,68i
$271,217
$249,423
,17,877 14,527 13,679 11,796 10,735 9,474 8,642 7,735 4,261 3,903 3,148 3,306 3,503 3,140 468.656 417,949 375,188 340,908 316,728 284,194 261.205 116,229 76,245 90.287 72,540 54.800 46,342 42,754 75,271 76,273 66,979 61,595 57,456 53,528 50,839 191,500 154,518 157,266 134,135 112,256 99,870 93,593 41,913 35,039 31,564 25,363 22,462 22.330 19,844 53,016 49,811 44,784 43,336 38,093 34,749 32,522 3,573 6,850 560 4,535 19,200 21,655 19,053 65,653 60,471 52,863 47,105 40,452 35,866 31,802 355,655 306,689 287,037 254,474 232,463 214,470 196,814 113,001 111,260 88.151 86,434 84.265 69,724 64,391 13,696 10,521 13,? /7 13,457 14.092 10,084 5,267 1,154 99 578 494 (48)
(4) 151 14,850 10.620 13,955 13,951 14,044 10,080 5.418 127,851 121,880 102,106 100,385 98,309 79.804 69.809 67,823 54,471 48,409 43,411 38,189 31,96a 26,244 242 242 242 242 242 242 242 68,065 54,713 48,651 43,653 38,431 32,210 26,486 59,786 67,167 53,455 56,732 59,878 47,594 43,323 15,700 15.288 11,312 10.074 7,796 5,251 4,996 5 44,086
$ 51,879
$ 42,143
$ 46,658 5 52,082
$ 42,343
$ 38,327
$ 1.37
$ 1.62
$ 1.35
$ 1.61
$ 1.92
$ 1.60
$ 1.59
$ 1.28
$ 1.28
$ 1.28
$ 1.28
$ 1.26
$ 1.20
$ 1.20 32,187,113 31,946,291 31,249,023 29,045,701 27,162,204 26,440,670 24,170,612
(
}-
8.94%
10.72%
8.89%
11.04 %
13.63%
12.07%
13.16%
1.92 2.33 2.10 2.39 3.03 3.12 3.31 (19 [-
25
4 Management'a Analyzia Of Operation 3 Uniot Electric and Subsidiaries The principal fluctuations in revenues and major categories of income and expense during the past two years are discussed below.
Operating Revenues Operating Expenses The principal factors causing increaes in revenues The changes in ooerating expenses during the during the periods set forth below were as follows:
penods set forth belove wert as follows:
Electric Variation from Fuel and Purchased Power Variation from Prior Year Prior Year 1978 1977 1978 1977 (MiHions of Doliars)
{Milhons of Dohars; Rate increas s.
S 43.2 5 2.1 Fuel:
Revenues resulting from application Variation in KWH generation.
S (4.9) 511 8 of fuel cost adjustment riders and Pnce inereases.
73.7 32 9 the inclusion of current fuel costs Generating units availability.
2.4 10 6 J
in basic tariffs to reflect the higher Purchased and interchange power.
(1.3) (14.4) costs of fuel under revised fuel S69 3 540.9 rider s.
67.9 25 5 KWH sales (excluding effect of the The vanations in purchaseo and interchange power factors listed above).
13.0 46.5 reflected favorable interchange transactions with other Ivlunicipal license taxes 7.3 39 power systems.
S131.4 $78.0 The fluctuations attributed to KWH sales in the above Other Operations Vadsion from table resulted primarily from increased use of Prior Year electricity by residential customers in 1978 and by 1978 1977 ao major classes of customers in 1977.
- M,uions of Douars Normal increases due to growth.
Gas Variation from new generating units. inflation Prior Year and annual wage increases.
S8.3 517 0 1978 1977 (Milhons of Donars)
Rate increases.
S1.0
$.9 Purchased gas adjustment riders 2.9 66 MCF sales (excluding effect of the f actors listed above).
3.5 J3 4)
S7.4 54.1 O
a 26
i b
Maintenance Variation from
'nterest and Other items 4
Prior Year 1978 1977 Tt.9 changes in interest and other items and in (Mdlions et Donars) divide?ds on preferred shares during the periods set Normal increases due to the addition forth belev were as follows:
of generating units higher costs of Variation from repair parts and wage increases.
S6.8
$7.0 Prior Year 9
1977 Depreciation W'"' ns f D nars; The variations in depreciation resulted frora increases Interest on debt.
S6.7 $ 5.5 in depreciable property. No changes were made in Allowance for borrowed funds used depreciation rates during the periods.
during construction (after December 31.1976).
(4.8) (10.7) income Taxes Preferred dividends of Company.
2.7
.7 For information concerning income taxes refer to Notes 1 and 2 under Notes to Financial Statements.
S4.6 S (4 5)
The increases in interest and preferred dividends Other Taxes were due to the issuance of securities to finance the These increases generally reflect taxes on additional construction program and higher interest and preferred
' 3al property and increased gross receipts taxes on dividend rates on certain of such securities. Effective
' Greater revenues.
January 1.1977, the portion of AFC related to borrowed funds has been classified as a reduction of.
interest and Other items (see Other income above).
Other income The changes in other income during the periods set forth below were as follows:
Variation from Prior Year 1978 1977 (Malions of Dollars)
Allowance for funds used during construction (AFC)
All fu.ds (prior to January 1, 1 " 7).
S - 5(12.4)
- mds (after Dece aber 31, 7.7 8.3 1.5 4.0
. Miscel.
-^*
S9.2 $ (.1)
Effective Janua.y.1,1977, in accordance with a Federal Power Commission Order, AFC was classified into equity funds and borrowed funds The equity funds
.-~ortion is included under Other income and the corrowed funds portion is recorded as a reduction of interest as shown under Interest and Other items.
g]
d, 27
Capital Etock Information i
Union Electric Company 1978 Calendar December 31 September 30 Preferred Stock Price Ranges Stated value of shares outstanding.
(High and Low):
$100 per share-
$ 7.44 Series (1).
S82%- 75%
S82 - 78
$6.40 Series (1).
70 - 64 71 66
$4.56 Series (1).
49 - 45%
$4.50 Series (1).
49%- 39%
48%- 46
$ 4.00 Series (1).
41 - 37 43 41
$3.70 Series (2).
(4)
(4)
$3.50 Series (1).
37% - 32%
38 - 35%
Stated value of shares outstanding,
$97.50 per share-58.00 Series of 1971 (1).
86 - 75 85 - 80%
Stated value of shares outstanding.
$92.25 per share-
$ 8.00 Series (2) and (3).
(4)
(4)
Stated value of shares outstanding.
$25.00 per share-
$ 2.72 Series (1).
$2.125 Series (issued October 1977)(1).
23%- 20%
24% - 21%
Preferred Stock Dividends:
Composite rate.
1.887%
1.887%
Total requirements (in millions).
S 5.8 SS.8 Preferred Shareholders at Year-End 23,042 Common Stock Price Ranges (High and Low) (1)
SIS - 13%
S15%- 13%
Common Stock Dividends:
Per share.
36C 36c Total payments (in millions).
$ 18.6 S17.0 Common Shareholders at Year End 157,956 (1) Based on transactions recorded on the New York Stock Exchange; all other Series are traded on the Over the Counter Market.
(2) Based on asked and bid prices recorded on the Over the Counter Market.
(3) Accepted for listing on the New York Stock Exchange on December 14,1978.
(4) No asked or bid prices or transactions recorded.
Selected Quarterly Information Union Electric and Subsidiaries Operating Revenues (in thousands)
S203,494 S266,750 Operating income (in thousands)
S 36,428 S 60,217 Net income (in thousands)
S 24,070 S 46,156 Earnings on Common Stock (in thousands)
S 18,310 S 40,396 Earnings per Common Share (a) 50.35 S0.85 (a) Based on average shares outstanding.
OON 28
@uarters Ended 1977 Calendar Quarters Ended June 30 March 31 December 31 September 30 June 30 March 31 581%- 79%
$84 - 81
$87M-83
$884-86%
$88%- 86
$87 - 83%
70 - 66 72% - 68%
74 %- 704 76%- 72 75% - 70 76% - 71 51 % - 49 %
52 - 51 53 - 51 M 55 - 52%
534-SOM 534-51 49 - 45%
51 - 47 534-50 54% - 51 52M-50 53 - 50 44% - 40 46% - 43%
47%. 45 48 - 44%
48 - 46 47 - 44M (4)
(4) 42 - 40 43 - 40 41M-404 41 - 37%
38%- 35%
40 - 36%
41 - 39 414-39%
42 - 384 42 - 38M 85M-82%
89 - 83 914-87 94 - 90 91M-86%
91M-874 (4)
(4) 91 - 87 92 - 89 90 - 87 87 - 81 28% - 22%
29%- 28%
31 - 28%
30% - 29%
31 - 29M 23% - 21%
24% - 22%
25 - 24%
1.887%
1.887%
1.887%
1.840%
1.840%
1.840%
S S.8 SS.8
$ 5.7
$4.9
$4.9
$4.9 23.356 414%- 13%
$15%- 14%
$16%- 14%
$16%- 15%
$16%- 15
$16M-15 340 34C 34C 34C 34C 34C S16.0 S15.9
$ 15.9 515.8
$ 15.7
$ 14.0 146.588
$221,107 S212,637
$ 177.428
$221.379
$ 182.394
$ 183.901 S 42,060 ~
S 37,527
$ 33.604 5 53.487 5 40.139
$ 31.909 5 27,514
$ 22,158
$ 18.853
$ 36.335 5 23,757 5 16.590
, 21,754 5 16,398
$ 13,216
$ 31.425 5 18.847
$ 11,680 50.46 30.35
$0.28
$ 0.68
$0.41
$0.28
Operating Etatistics I
Union Electric and Subsidiaries 1978*
1977*
1976*
1975*
1974 1968 Electric Operating Revenues (000 Omitted):
Residential.
S331,128 $283.124 $248.784 $220.174 $ 171.381
$ 97.958 Commercial.
253,279 219.806 195.568 162.079 129.351 75.423 Industrial 209,440 169.834 154.539 127.939 107.471 60,618 Other elcctric utilities.
31,565 24.040 21.432 19.812 23.814 9.805 Miscellaneous.
19,061 16.232 14.677 12.973 11.027 5.619 Total S844,473 $ 713,036 $635.000 $ 542.977 $443,044
$249.423 Percent of total:
Residential.
39.2%
39.7%
39 2%
40.6%
38.7%
39.3%
Commercial.
30.0 30.8 30.8 29.8 29.2 30 2 Industrial.
24.8 23.8 24.3 23.6 24.3 24 3 Other electric utilities.
3.7 3.4 3.4 3.6 5.4 39 6
Miscellaneous.
2.3 2.3 2.3 2.4 2.4 2.3 Total 100.0%
100.0%
100.0%
100.0%
100.0%
100 0%
Kilowatt Hour Sales (OCO.000 Omitted):
Residential.
7,670 7,389 6.625 6.807 5.898 4.168 Commercial.
6,332 6.331 5.823 5.554 5.249 4.3 Industrial.
7,738 7.656 7.221 6.855 6.845 5.5 Other electric utilities.
1,317 1.263 1.171 1.222 1,780 1.0 Miscellaneous.
460 442 519 506 474 302 Total 23,517 23.081 21.359 20.944 20.246 15.466 Percent of total:
Residential.
32.6%
32.0%
31.0%
32.5%
29.1%
27.0%
Commercial.
26.9 27.4 27.3 26.5 25.9 28 2 Industrial.
32.9 33.2 33.8 32.7 33 8 36.1 Other electric utilities.
5.6 5.5 5.5 5.9 88 6.7 Misce'laneous.
2.0 1.9 2.4 2.4 2.4 2.0 Total 100.0%
100 0%
100.0%
100.0%
100.0%
100.0%
Electric Customers (End of year):
Residential.
845,074 832.251 821.564 810.702 764.363 706.077 Commercial.
99,751 99.105 95,248 93,848 81.477 75.731 Industrial.
5,348 5.225 5.459 5,368 5.303 4.740 Electric utilities.
24 24 24 25 23 22 Other.
2,753 2.312 1.472 1.350 1.195 962 Total 952,950 938.917 923,767 911,293 852.361 787.532 Residential Electric Customer Data ( Average).
Kilowatt hours used.
9,167 8,956 8,114 8.459 7,756 5.965 Annual bill.
3395.74
$343.16
$304.71
$273.62
$225.37
$ 140.1 Revenue per kilowatt hour-cents.
4.32 3.83 3.76 3.23 2.91 2 35
- includes operatis cf Missouri Utilities Company, a subsidiary acquired December 31.1974. Prior to acquisition, sales M;ssouri Utilities were included as sales to electric utilities.
0048 30 m %
L
Generation Statistics Union Electric and Subsidiaries 1978 1977 1976 1975 1974 1968 Kilowatt Hour Output (000,000 Omitted):
Steam generation-Rush Island.
6,141 5,926 2,603 Labadie.
12,044 11,598 12,434 12,763 10,561 Sioux.
3,331 4.407 4,207 4.460 3.147 3.500 Meramec.
3,260 3,7,2 4.135 4.108 4,124 5.486 Other (net).
196 1U5 523 420 885 2.726 Total steam..
25,472 25.858 23.902 21,751 18,717 11,712 Hydro generation-Keokuk.
913 770 633 861 869 920 Osage.
407 3 31 268 624 766 513 Total hydro.
1,320 1,/ 71 901 1,485 1,635 1.433 Purchased and other(net)
(1,246)
(1,1360)
(1,498)
(457) 1.560 3,516 Total output.
25,546 25,369 23.305 22,779 21,912 16,661 Less line losses, etc.
2,029 1 088 1,946 1,835 1,666 1,195 Kilowatt hour sales.
23,517 23 081 21.359 20,944 20.246 15.466 Output (in % of total):
Steam generation.
99.7%
103.1%
102.6%
95.5%
85.4%
70.3%
Hydro generation.
5.2 4.3 3.9 6.5 7.5 8,6 Purchased and other.
(4.9)
(7.4)
(6.5)
(2.0) 7.1 21.1 i
Total 100.0%
100.0%
100.0%
100 0%
100.0%
100.0%
Thermal Economy of Steam Plants (BTU per KWH generated).
10,360 10.325 10.393 10.202 10.289 10,696 Fuel Cost (Cents per million BTU burned).
115.865 85.858 71.247 62.533 50.129 22.293 System Gross Instantaneous Peak Demand (Kilowatts).
5,813,000 5,837.000 5,582,000 5.363.000 5,318.000 3,830.000 System Capability at Time of Peak, including Net of Firm Purchase and Sale of Capacity (Kilowatts).
6,873,000 6.891,000 6.913.000 6.474.000 6.660.000 4,171.000 System Generating Capability st Year End (Kilowatts).
6,850,000 6,673.000 6.361.000 5.891.000 5.921,000 3,719.000 Load Factor.
52.74 %
51.79%
50.19%
51.15%
50.07%
52.54 %
M:Jor Generating Units Installed (Kilowatts):
1968-Sioux.
.500.000 1970-Labadie.
.600.000 1971-Labadie.
.600.000 1972-Labadie.
.600.000
(
1973-Labadie.
.600,000 1976-Rush Island.
.600.000 1977-Rush Island.
.600,000 COO 31
W Property And Plant (Thousands of ooitars)
Union Electric and Subsidiaries December 31, 1978 1977 1976 1975 1974 Property and Plant:
l Electric.
S3,169,088
$2.860,318
$ 2,650.958
$ 2,483,323
$2.334.435 I
Gas.
61,715 59.715 58.275 56.934 55.769 Steam.
10,039 10.080 9.891 10.704 9.640 Water.
6,767 5,734 4.493 4,218 4.026 Other.
18,913 17,998 18.820 17.115 7.276 Total S3,266,522
$2,953.845
$ 2,742,437
$2,572.294
$2.4 : 1 146 Electric Plant:
Steam production.
S1,182,407
$ 1,178.235
$ 1.048,14 7
$ 841,772
$ 842.124 Hydraulic production.
59,614 69.403 59.220 59.205 58.761 Pumped-storage production.
45,856 45.854 45.861 45.861 45,854 Internal combustion production.
42,287 22,249 19.476 18.528 18.485 Transmission and distributiori.
1,238,093 1,183.134 1,133,955 1.067,119 1.025.494 Generat.
83,345 78.448 73.817 67.542 64.678 Electric plant in service.
2,651,602 2.567.323 2,380.476 2.100.027 2.055.396 Construction work in progress.
517,486 292.995 270.482 383.296 279.039 Total S3,169,088
$ 2,860,318
$2.650.958
$2,483.323
$ 2,334.435 Accumulated Electric Depreciation:
Amount.
S693,428
$632.027
$591,661
$ 555,964
$508.4 Percent of depreciable property and plant.
26.3%
24.8%
25.1%
26.7%
25.0%
Annual depreciation rate.
2.7%
2.7%
2.7%
2.7%
2.7%
1978 1977 1976 1975 1974 Gross Plant Expenditures.
S323,292
$240.433
$ 199.868
$ 170.088
$ 1 W,013 Property Retirements.
S 10,615
$ 29.025 5 29.725
$ 8,940
$ 9.740 Construction Forecast (Tnousands of ooi'ars)
Union Electric and Subsidiaries 1979 1980 1981 1982 1983 Construction Expenditures:
Generating Facilities-Combustion peaking turbines 5 8,014
$ 26.554 5 28.790
$ 9.909 282 Callaway nuclear plant.
263.384 271.738 221,967 275.251 292.1 Transmission, distribution and other facihties.
143.427 190.350 211.397 182.468 127.755 Total
$414.825
$488.642
$462.154
$467,628
$420.228 Oika0
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New Ybrk. N Y.10015
- Charles J.
hefty Resident-Transmission President and f Execushe Otticar Registrars p
pist@ution
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.:Edwin S. Jones Fw PrWwmd Smok C8lbert W l.Als Chdtmanof theExecutiveComtnittee-The Boatmen's Nattenal Sank Mce Resident-RegionalOperabons First National Bank in St. l.ouis, which
, of SgJ.ouis J. F. Mitt, Jr.
conducts a general banking business.
c' St - Louis. Mo. 63168 e
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' Tie chase uanhattan sank
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Retired, ormer
' dent-y-
.s MilarnA.
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Anheuser-B (National A-inw)
.e New Wrk. N.Y.10015 1
Mce W-'
, i Wiens
. John K Ried'y
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.For CeEmen stock
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- StewettVI$mith.Jr.
fsident and Chief Operating Otticer-
.'-. cThe Boatmen's National Bank ~
W Mce arWfGenerafW urer and. retailer.of
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Merle T. W wce heelderlt-Finance
. Stewart W. Smith. Jr.
Manufacturers Hanover Vice President and GeneralCounsel R 5. VAsttf M. A.
Trust Company.
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.*Howard L %
New Ybrk. N.Y.10015 Musident-Arnerican Zinc %. inc.. thsetee, Transfer ~
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. subsidiary of Te s
in marketing of nonferrousi Agents, Registrars,
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. ' and Paying Agents G. R Murray.
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Secretary ADVISERS-TOTHE 80ARD
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- St Louis Union Trust Company Isaac B.
er
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ThJerse
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W. Alfred Hayes -
~ 4 Bankers Trust l
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. Chairman or the Board-W Alfred. -.
L.' ' New Ybrk, N Y 0015 W
Hayes and Company, pension trust consultants.
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<4 J. W.McAfee 33
..f Chainnanor the Board
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