ML20034A744
| ML20034A744 | |
| Person / Time | |
|---|---|
| Site: | Maine Yankee |
| Issue date: | 04/17/1990 |
| From: | Nichols S Maine Yankee |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| MN-90-42, SEN-90-115, NUDOCS 9004240212 | |
| Download: ML20034A744 (71) | |
Text
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4 MaineYankee SIELIABLE ELECTRCITY FOR MAINE SINCE 1972 EDISON DRIVE. AUGUSTA. MAINE 04330 (207) 622 486B
.l April 17, 1990 MN 90-42 SEN-90-Il5 1
1 l
i UNITED STATES NUCLEAR REGULATORY lCOMISSION Attention: Document Control Desk Washington, DC 20055 l
References:
(a)
License.No. DPR-36 (Docket No. 50-309)
Subject:
Annual Financial-Report Gentlemen:
Pursuant to 10 CFR 50.71(b), please find enclosed a copy of ~the 1989 Annual Financial Report (Form 10K) for Maine Yankee Atomic Power Company.
The original report is on file with the Securities and Exchange Commission.
Very truly yours, f
$fAh As S. E. Nichols i
Licensing Section Head SEN:SJJ
Enclosure:
MYAPCo Form 10-K for the Fiscal Year Ended: December 31, 1989 c:
Mr. Thomas T. Martin Mr. Cornelius F. Holden Mr. Eric J. Leeds e
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SEN90ll5.LTR
(([f 9004240212 900417' ADOCKOSOOgig?
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FORM 10-K SECURITIES AND EXCHANGE COMMIS$10N Washington, DC 20$4g (MarkOne)
X ANNUAL REPORT PUR$UANT TO SECTION 13 OR 15(d) 0F THE SECURITIESEXCHANGEACTOF1934[FEEREGUIRED) for the fiscal year ended December 31. 1989 OR TRAN5tTION REPORT PURSUANT TO SECTION 13 OR 15(d) 0F THE SECURIT![$EXCHANGEACTOF1934[N0FEEREQUIRED)
For the transition period from to Commission file number 1 6554 MAINE YANKEE ATOMIC POWER COMPANY (Exact name of registrant as specified in its charter)
Incorocrated in Maine 01-0278125 (State or other jurisdiction of (l.R.S. Employer incorporationororganization),
Identification No.)
Edison Drive. Auausta. Maine 04330 (Address of principal executive offices)
(Zip Code) 207-622-4868 (Registrant's telephone number including area code)-
Securities registered pursuant to Section 12(b) of the Act:
Name of each exchange Title of each class on which registered first Mortonae Bonds. Series A (Sinkina Fund) 9.10% Due 2002 New York Stock Exchance. Inc.
First Mortoaae Bor.ds. Series B (Sinkina Fund) 8.1/2% Due 2002 New York Stock Exchanat. Inc.
First Mortoaae P.onds. Series C 151nkino f und) 7 5/8% Due 2002 New York Stock Exchanoe. Inc.
Securities registered pursuant to Section 12(g) of the Act: None Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No The aggregate valua of the voting stock held by non-affiliates of the registrant is $50,000,000, based solely on the par value of the common stock. There is no market in this security.
Indicate the number of shares outstanding of each of the registrant's classes of common stock, as of the latest practicable date.
Shares Outstanding (1311 as of March 15. M 1Q Comon Stock, $100 par value 500,000 DOCUMENTS INCORPORATED BY REFERENCE No documents are incorporated by reference in this report.
u
a
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!h Waine Yankee Attaic Power Company Form 10-K - 1989 tigj_rtt Yankee Atomic Eq_wlt Comoany Form 10-K - 1989 j
TABLE OF CONTENTS EAAR Part I Item Number 1
Item 1.
Business...........................
1-Item 2.
Properties.......................... 8 Item 3.
Legal Proceed i ngs...................... 8 Item 4.
Submission of Matters to a Vote of Security Holders.....
9 Part 11 Item 5.
Market for the Registrant's Common Equity and Related Stockholder Matters....................
10 Item 6.
Selected Financial Data..................
11 Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations............
12 Item 8.
Financial Statements and Supplementary Data........
18 Item 9.
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure............
42 Part III Item 10. Directors and Executive Officers of the Registrant.....
43-Item 11. Executive Comper sation...................
51 Item 12. Security Ownership of Certain Beneficial Owners and Management.......................-.
54 Item 13. Certain Relationships and Related Transactions........ 55 Part IV Item 14. Exhibits, Financial Statement Schedules, and Reports o n Fo rm 8-K........................
5 6 Signatures.............................
58
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Maine Yankee Atomic Power Company Form 10-K - 1989 i
PART I ITEM 1 - BUSINESS i
(a) General.
Maine Yankee Atomic Power' Company-(the " Company" or " Maine Yankee"), incorporated under the laws of Maine on January 3,1966, owns and operates a pressurized-water nuclear-powered electric generating plant at Wiscasset, Maine, with a current net capability of approximately 870 megawatts electric (the " Plant").
The Company solls its capacity and output to its ten sponsoring utilities. _ The Company's principal office l
address is Edison Drive, Augusta, Maine 04330, and its. telephone number is (207) 622-4868.
The Plant was declared commercial on December 28, 1972, with regular operation at approximately 570 megawatts electric (net) starting on January 1,
1973.
Hearings on the Company's application for a full operating license were completed in 1972 and the license for full operation to 2008 at approximately 790 megawatts' electric (net) lear Regulatory Commissio was granted by the Atomic Energy Commission, the predecessor of the Nuc
("NRC"), on June 29, 1973.
In 1978 the NRC authorized an increase in the output rating of the Plant to approximately 855 megawatts electric (net) and in 1989 the Company was authorized an increase to approximately 870 megawatts electric.(net). 1989 was the most productive year in the history of the Plant.
In 1989, the Plant produced 6.9 billion kilowatt-hours of electric power at an average cost of 2.3 cents per kilowatt-hour.
The Company is sponsored by ten investor-owned New England utilities (the
" Sponsors" or the " Stockholders"), each of which is committed under a Power Contract with the Company to purchase. a specified percentage of the capacity and output of the Plant and to pay therefor, a like percentage of amounts sufficient to pay the Company's fuel costs, operating expenses (including a depreciation accrual at a rate sufficient to fully amortize the investment in the Plant and amounts estimated to be sufficient to decommission the Plant), interest on its debt and a return on its. equity.
The Co:npany and its Sponsors have also executed Additional Power Contracts for the purpose of extending the term of the Power Contracts, as amended, from 2003 to the end of the useful life of the Plant and the completion of its decommissioning.
Each Sponsor has also agreed under 'a Capital' Funds Agreement with the Company to provide a like percentage of the Company's capital requirements not obtained from other sources, subject to obtaining necessary authorizations of regulatory bodies in each instance. All such obligations are subject to the continuing jurisdiction of various federal and state regulatory bodies.
The obligations of the Sponsors to make payments under the Power Contracts are unconditional, subject only to each Sponsor's right to cancel its Power Contract if deliveries cannot be made to the Sponsor because either (i) the Plant is damaged to the extent of being completely or substantially completely destroyed, or (ii) the Plant is taken by exercise of the right of eminent domain or a similar right or power, or iii a
the Plant cannot be used because of contamination or because a n(eces)sa(ry) license or 1
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a s Maine Yankee Atomic Power Company i
Form 10-K - 1989 l
ITEM 1 - BUSINESS (continued)
(a) General. (continued) j authorization cannot be obtained or is revoked or the utilization thereof is made subject to specified conditions which are not met, and (b) the situation cannot be rectified to an extent which will permit the Company to make deliveries to the Sponsor from the P_lant.
Notwithstanding the right to cancel, the obligation to pay decommissioning costs continues i
until the Plant has been fully decommissioned.
A default by a Stockholder of the Company in making payments under the Power Contract or Capital Funds Agreement could have a material adverse effect on the Company, depending on the magnitude of the default, and would constitute a default under the company's First' Mortgage Indenture and two other major credit agreements unless cured within applicable grace periods by the defaulting Stockholder or other Stockholders.
Although no assurances can be given, the Company believes that in light of the operating history of the Plant and the relatively low cost 'of power produced by the Plant,'it is unlikely that there would be a default by a Stockholder that would materially and adversely affect - the continued operation of the Plant.
For a discussion of a bankruptcy. proceeding involving a Stockholder of the Company, see "(h) Public Service Company of New Hampshire Bankruptcy", below.
(b) Problems Affectina the Industry and the Company.
Substantial controversy exists concerning nuclear generating plants, which intensified when events in 1979 at the Three Mile Island Nuclear Unit No. 2 in Pennsylvania ("TMl") caused increased concern about the safety of such plants. This prompted a rigorous reexamination of safety related equipment and operating procedures in all nuclear facilities and caused the NRC to promulgate numerous requirements in response to - THI, including both t
near-term modifications to upgrade certain safety systems and l
instrumentation and longer-term design changes, ranging from equipment changes to operationa'l support. The Company has made the modifications i
required by the NRC.
World-wide concern was increased by an-accident in April 1986 resulting in the release of radioactivity from the Chernobyl nuclear generating facility in the Soviet Union, and concern in Maine was intensified in early 1986 by the identification of two locations in Maine l
as potential sites, later rejected, for high-level nuclear waste disposal facilities by the federal Department of Energy ("00E").
In addition, the NRC is continuing its safety reviews under both long-standing and new regulations and may at any time issue orders which could materially affect the Company's affairs and financial condition and the operation of the Plant.
Public and regulatory attention has also focused on the-disposal of both low-and high-level nuclear wastes.
Certain as-pects of the disposal of nuclear wastes and the decommissioning of nuclear generating facilities have been regulated under federal and Maine law and further regulation is likely in this area.
Public concern about the operation of nuclear generating - facilities and the disposal of nuclear l
wastes has scmetimes resulted in public campaigns to close such facilities, l
including three unsuccessful referendum campaigns in Maine between 1980 and 2
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-1 Maine Yankee Atomic PGwer Company i
Form 10-K - 1989 ITEM 1 - BUSINESS (continued)
(b) Problems Affectina the Industry and the Company. (continued) 1987 to close the Plant, the last of which was defeated by a 59% to 41%'
margin.
. Although affecting various nuclear generating facilities in
.i varying degrees, such events, as well as other problems of the industry, have had, and will continue to have, a direct effect on the affairs and financial condition of the Company.
l (c) Reaulation and Environ'nental Matters. The Plant is subject to exten-1 sive regulation by-the NRC, which is empowered to -authorize the-siting, construction and operation of nuclear reactors after consideration of public health, safety, environmental and antitrust matters.
i The United States Environmental Protection Agency (" EPA") administers-programs established under the Federal Water Pollution Control Act and the r
Clean Air Act which affect the Plant.
The former Act establishes a national objective of complete elimination of discharges of pollutants into the nation's water and creates a rigorous permit program designed to achievethisobjective. The latter Act empowers the EPA to establish clean air standards which are implemented and enforced by state agencies.
In addition, pursuant to the Federal Resource Conservation and Recovery-Act of 1976, the EPA regulates the generation, transportation, treatment, storage and disposal of hazardous wastes, but not radioactive wastes. The EPA has broad authority in administering these ' programs,. including the ability to require installation of pollution control and mitigation devices.
i The National Environmental Policy Act of 1969 ("NEPA") requires that de-tailed statements of the environmental effects of major federal actions be prepared by federal agencies. Major federal actions can include' licenses or permits issued to the Company by the NRC and other federal agencies for construction or operation of generation and transmission facilities. NEPA requires that federal licensing agencies make an independent evaluation of l
the environmental impact of, and alternatives to, the proposed action.
Future construction modifications or other activities at the Plant could l
require federal licenses or approvals that involve NEPA requirements, The Company is also subject to regulation as to environmental matters and i
l land use by various state authorities in Maine.
Under their continuing jurisdiction, the NRC and one or more of the EPA and the state authorities having jurisdiction over the Company's facil-ities may modify permits or licenses which have already. been issued, or impose new conditions on such permits or licenses, and may require ad-ditional capital expenditures or require that the level of the operation of a unit be temporarily or permanently reduced.
See " Problems Affecting the Industry and the Company" above.-
The Sponsors of the Company have agreed, however, subject to certain exceptions-including regulatory
- approval, (i) to provide the required capital not otherwise available.-
(ii) to take the total output of the Plant, and (iii) to pay all. costs of i
the Plant, including capital and decommissioning costs.
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n Maine Yankee Atomic Power Company '
Form 10-K - 1989 ITEM 1 - BUSINESS-(continued)
(c) Reoulation and Environmental' Matters. (continued)
The Company and several of its Sponsors are-subsidiaries of registered holding companies and as=such are subject to regulation by the Securities and Exchange Commission ("SEC") under the Public Utility Holding Company Act of 1935 with respect-to various matters, including the issuance of securities. -The Company is also subject to regulation by the SEC under:
other federal security laws.
The Company is also subject to regulation by the Federal Energy Regulatory Commission ("FERC") as-to its rates (including the Power Contracts and Additional Power Contracts)-and-various other matters, and 'is subject to-regulation by the Maine Public Utilities Commission ("MPUC") as.to-some aspects of its business, including the issuance of. securities.
(d) Nuclear Fuellisoosal. The Company has entered into a contract with the DOE for disposal-of its spent nuclear fuel, as required by the Nuclear Waste Policy Act of 1982,- pursuant to which-as fee of $1.00 per =
megawatt-hour is currently assessed against net generation of electricity-and paid to the DOE quarterly.
Under this Act, the DOE has assumed the responsibility. for disposal of spent nuclear 1 fuel, produced in private nuclear reactors. In addition, Maine Yankee is obligated to make a payment of $50,367,000 with respect to generation-prior to April 7,1983 (the date current DOE assessments began), all of which the-Company has already 1
collacted from its customers, but for which a reserve was not funded. - The i
Compey has elected under the termsi of' this contract to make a single payment of this obligation prior to the first delivery of spent fuel to 1
DOE, scheduled to begin no earlier than 1998.- The payment will consist of the $50,367,000, plus interest accrued att the.13-week Treasury Bill rate compounded on a quarterly basis from April 7,1983,'through_ the date of the-U actual payment. Current costs incurred by the Company under this contract are recoverable by it under the terms of its Power Contracts with its i
Sponsors. The Company has accrued and billed $34,004,000 of interest cost for the period April 7, 1983, through December 31, 1989..
~
i Maine Yankee has formed a trust to provide for payment' of 'its lor.Merm I
spent fuel obligation, and is funding the trust with deposits of 1
approximately $4,100,000 at least semiannually, which began. in December
~
1985 and will continue through May 1995.
Deposits are expected to total 4
approximately $86,753,000. The estimated liability, including interest due at the time of disposal, is expected to be approximately $160,021,000 at January 31, 1998.
The Company estimates ~ that trust fund deposits plus estimated earnings will meet this total liability if funding continues-without material changes. The trust funds are included in Deferred Charges-and Other Assets on the accompanying balance sheet.
i Under the terms of a license amendment approved by the NRC in 1984, the present storage capacity of the spent fuel pool at the Plant will be reached in 1999 and after 1996 the available capacity of the pool will not accommodate a full-core removal.
The Atomic Safety and Licensing Board has approved the Company's proposal to demonstrate a further modification i
4
,s Maine Yankee Atomic Power Company Form 10-K - 1989 ITEM 1 - BUSINESS (continued)
(d) Nuclear Fuel Disposal.-(continued) which would, if implemented, permit storage capacity through the operating -
life of the Plant. The implementation of such a modification would require-further approval from the NRC.
A Maine statute provides that after July 1,
1992, spent nuclear fuel may not-be stored on site for a period exceeding three years from the-date of removal of - the fuel from the reactor. The Company is evaluating its' options including _the possibility of. legislative or legal action.
While the Company' cannot predict the outcome of legislative. action or of a legal challenge, it believes that the.
NRC has the exclusive authority to regulate on-site storage of spent-fuel -
Federal legislation enacted in December 1987 directed.the' DOE to proceed with the, studies necessary to develop and operate a-permanent high-level waste (spent fuel) disposal -site at Yucca Mountain, Nevada.
The legislation - also provides for the possible - development-of - a : Monitored Retrievable Storage ("MRS") disposal site.
facility _ and. abandons plans to identify and select a second, _ permanent An MRS facility would: provide temporary storage for high-level waste prior.to-eventual permanent disposal.
In late 1989 the DOE announced that the permanent disposal: site-
'a
.is not expected to open before 2010, although originally scheduled to open in 1998.
Additional delays due to political and technical problems are possible.
Maine Yankee is assessing-plans to provide for storage of its spent nuclear fuel, but cannot predict whether,. or to what extente the -
Maine statute and storage capacity limitations -referred to above may; be modified and whether, or to what extent, they will affect the operation of the Plant, j
(e) Decommissionina. The NRC currently. recognizes three decommissioning.
f methods - complete dismantling and removal, in-place encapsulation or-
" entombment" and-mothballing - or a combination of theseemethods.
The-Company currently proposes to use, consistent with its understanding of 4
NRC and FERC staff policy, the complete dismantling and removal. method.
I Through 1989 the Company had collected $32,830,000 for decommissioning, d
which funds are held by an independent trustee..The total decommissioning -
i fund balance as of December 31,_1989, was $38,884,000 (including interest earned)' and is included in Deferred Charges and Other Assets on the accompanying balance sheet.
i The Company's most recent study, conducted. in '1987 by an external.
engineering consultant, estimated decommissioning costs to be $142,478,000 i
plus a contingency of $35,620,000 for 'a total of $178,098,000-(in mid-1987 dollars).
The Company recognizes the relative uncertainty of decommissioning, the changing technology of decommissioning-and' the possibility of new requirements of law, and therefore recognizes' the need to monitor and adjust decommissioning collections through supplemental rate-filings with FERC.
The State of Maine enacted a statute in 1982 which requires the Company to submit a detailed decommissioning financing plan to the MPUC for approval, and in 1984 the MPUC approved an interim plan.
In March 1989 the Company _
i amended the interim plan with updated information and requested that the plan, as amended, be approved. In a proceeding for approval of the amended
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3o Maine Yankee Atomic Power Company '
j Form 10-K - 1989 ITEM 1 - BUSINESS-(continued)
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t (e) Decommissionina. (continued) j plan, the MPUC on February 22, 1990, ordered the Company to fund the trust at a level based on an estimated decommissioning cost of $178,098,000, j
which is in excess of $167,000,000 which the FERC adopted when it authorized the Company to collect - that amount through rates in. the Company's most recent rate _ proceeding in September 1988.
-The Company.
cannot predict the ultimate result, but believes that the FERC-is authorized by law to establish the size of the Maine Yankee decommissioning fund and Maine Yankee's annual-collection level-in rate proceedings. Maine-Yankee'is' seeking a judicial determination by the Maine Supreme Judicial Court of the MPUC's authority to' set an amount different from that-allowed by the FERC. 0n March 23,1990,-the MPUC granted the Company's request for a stay of the MPUC order pending the outcome of the judicial: determination.
(f)
Low-level Waste Disposal.
In 1986.the federal Low-Level Radioactive Waste Policy Amendments Act (the " Waste Act") was enacted.
The Waste Act requires the present disposal sites to accept-low-level nuclear wastes from other states-until December 31, 1992.
The Waste Act also sets limits on the volume of waste each disposal facility must accept from each state, establishes milestones for the non-sited states to establish sites within a
their states or regions (pursuant to regional compacts) and authorizes increasing surcharges on waste disposal until 1992-After 1992 the states in which there are operating disposal sites will be permitted to refuse to accept wastes generated outside their states or compact' regions. Maine has satisfied its current milestone obligations under' the Waste Act and is pursuing plans to meet future requirements in a timely manner._
In addition to the requirements of the Waste Act, a 1985 Maine law requires voter approval prior to construction or operation' of any new facility in :
Maine for the storage or disposal of low-level radioactive wastes. The law also requires voter approval prior to Maine's entering into any' compact or agreement witn any state or the federal government' concerning' the disposal or storage of low-level radioactive wastes inside or outside of Maine. On November 7,1989, Maine _ voters approved an agreement between the State of Maine and the Rocky Mountain Low-Level Radioactive Waste Board providing interim access to an existing low-level waste disposal site in Nevada from 1990 through 1992. The Company currently has the capacity to-store approximately five years' production of low-level waste at its-existing facility at the Plant site and intends to continue to ship its wastes to present off-site facilities for_ as long as possible in order to preserve that capacity.
The companP cannot predict, however, the extent 1
to which Maine will continue to satisfy its milestone obligations under the Waste Act or whether voter approvals required by the 1985 Maine law will be obtained in the future.
.t In 1987 the Maine Legislature established the Maine Low-Level Radioactive Waste Authority, which was created to provide for a low-level radioactive waste facility for Maine.
Pursuant to the statute, the Authority is as-sessing Maine Yankee, as the only nuclear plant in Maine, for the initial statutory assessment of $10,000,000 over a four-year period ending on March 1,1992, to be used for the planning, siting, licensing and construction 4
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Maine Yankee Atomic Power Company Form 10-K'- 1989.
ITEM 1 - E'JWM (Mtinuad)
(f) LgAevel Waste Disoosal. (continued) of such a facility. Through March 15, 1990, the Company has been assessed
$6,000,000.
The statute also.provides that,c as reliable cost estimates become available, additional costs associated with such a facility will be assessed to any nuclear plant in the state following legislative' enactment.
Pursuant to the statute, Maine Yankee will also be responsible for its share of the cost of operating such a-facility.
(g) Nuclear Insurance. In August 1988 Congress enacted -aE fifteen-year extension and revision.of the Price-Anderson Act. The revised act provides.
for an increase in the limit of liability for a nuclear-related accident from $720 million to approximately $7.445 billion.
The primary -layer of-insurance for the liability increased from $160 million to $200 million of coverage provided by the commercial insurance market.
The _ secondary coverage increased from $560 million to $7.245 billion, based on 115 licensed reactors.
The change in the secondary layer is accomplished by-an increase in the retrospective premium assessment from $5 million to-$63 million per nuclear accident per licensed reactor, payable at a rate not exceeding $10 million per year per accident.
In addition, the. retrospec-tive premium is subject to inflation-based indexing at-five-year intervals and, if the sum of all public liability claims and legal costs arising from any nuclear accident exceeds the maximum: amount of financial protection, each licensee can be assessed an additional. 5% ($3.15 million) of-the a
maximum retrospective assessment.
H 1
In addition to the insurance required by--the revised Price-Anderson Act, the Company carries all-risk nuclear property ' damage insurance in the_
4 amount of $500 million plus additional excess nuclear property insurance in the amount of $1.535 billion effective January 1,' 1990.-
Of this-additional excess insurance, $975 million is provided by a nuclear electric utility industry insurance company through' a combination of current premiums and retrospective premium assessments-If-the insurance company experiences losses in excess of its_ capacity-to pay them, each participating utility may be assessed a retrospective premium of up to 7.5-times 'its annual premium with respect to industry losses in any policy year, which could range up to approximately $7.4 million for the Company.
The remaining excess nuclear property coverage of $560 million is obtained from the commercial insurance market and is not subject to retrospective premium assessments. These excess coverage amounts are the maximum offered-by both the industry mutual company and the commercial market.
(h) Public Service comoany of New Hamoshire Bankruotev.
One of the Stockholders of the Company, Public Service Company of New Hampshire
("PSNH"),'which is entitled to approximately 5% of the output of the Plant,.
filed a petition for protection under Chapter 11 of the federal bankruptcy laws in January 1988. PSNH had paid in full the amount due under its Power Contract with the Company through January 1988 in advance of its filing, and has paid its post-filing obligations to the Company as they have become j
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Maine Yankee Atonic Power Company-Form 10-K - 1989 111t4 1 - BUSINESS (continued)
(h) Public Service Comoany of New Hamoshire Bankruotev.-(continued) due. Northeast Utilities (*NU"),-a Connecticut-based holding company. and
~
parent of two Sponsors which own a total of 15% of the~ common stock of the-Company, has submitted a reorganization plan involving a takeover of-PSNH which has been endorsed by the New Hampshire legislature and - has the support of PSNH's creditors and shareholders. The takeover of PSNH by NV-is subject to the approval of the Bankruptcy Court _ and-state and federal.
regulatory bodies.
(i) Employees.
At December 31, 1989,- the-Company had.356 ' full-time employees.
ITEM 2 - PROPERTIES The Plant is located on tidewater on Bailey Point in Wiscasset, Maine,' on a 740-acre site which-is owned in fee by'tho' Company and is adequate for the Plant and for all associated facilities, including the associated ~
switchyard facilities which are owned in part and operated.by Central Maine Power Company.
The Plant is a nuclear-powered electric generating plant,. utilizing. a pressurized-water reactor, fueled with slightly enriched. uranium oxide, j
The nuclear steam supply system and certain other equipment were designed and fabricated by Combustion Engineering, Inc. The-turbine generator was supplied by Westinghouse Electric Corporation. Stone & Webster Engineering Corporation, as engineer and constructor,. designed-and constructed' the Plant.
The-nuclear design and construction of ~the Plant were supervised g
by the Nuclear Services Division of Yankee Atomic Electric Company, which has supervised.the design and construction of other nuclear generating plants in New England. Construction of the Plant, which began in 1967, was completed in 1972 except for certain' discharge: temperature control facilities designed to meet the requirements of the Maine Board of Environmental Protection, which were completed in 1975.
Under-the terms i
of the Indenture securing the First-Mortgage. Bonds, substantially all electric plant of the Company is subject to a first mortgage lien.
4 ITEM 3 - LEGAL PROCEEDINGS (a) General. The operation of existing nuclear units and the construction of nuclear units in the United States continue to be a subject of public controversy.
Various-groups have filed law suits and participated in-administrative proceedings claiming that the present state of nuclear technology presents risks to public hea^lth and safety and to the environ-ment.
In addition, certain of these legislation relating to nuclear. power. groups have proposed restrictive Some of the claims made by such s
groups, if they should prevail, or the existence of the controversy it-self, could cause substantial modifications to or extended shutdowns of plants presently in operation.
See Item 1, BUSINESS, " Problems Affecting' 3
the Industry and the Company" above.
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Maine' Yankee Atomic Power Company Form 10-K - 1989-ITEM 3 - LEGAL PROCEEDINGS (continued)
(b) Rate Proceedinos. In January 1988 the Company filed a request with the FERC to modify certain billing calculations and to increase its collection for decommissioning.
The request sought FERC approval to decrease - the-level of return on common equity from 13.6% to 13.5%, to provide for depreciation expense based on the recognition of shorter useful lives for certain classes of assets than had previously been assumed, to provide for the amortization of materials and supplies and the last fuel core and _to increase the annual' decommissioning collection from; $4,796,000 to
$14,466,467 based on a total estimated cost of $178,098.000 and on full recovery by 1998, rather than over the WRC operating license life of the P1 ant, Ja t.,
to 2008, After discussions among the Company,-.the FERC Staff, and~intervenors, and rejection by FERC of the shorter decommissioning collection. period, a settlement agreement resolving all - outstanding issues under this rate proceeding was approved by the FERC by order dated September 20, 1988, with-rates effective August 16, 1988. The settlement egreement provided, among other things, for the following:
(1) Rate of return on common equity at 12.9% per annum.
(2) Annual decommissioning collections of $9,073,943 (based on a total estimated cost of $167,000,000), exclusive of any income tax liability, for the remaining license life.
(3) Depreciation expense based on the recognition of shorter useful lives for certain classes of assets.
(4) Amortization of materials and supplies and.last core fuel.
(5) Agreement by the Company not to propose an-increase and by:other
]
parties not to. make a
filing to decrease the annual decommissioning charges to take effect prior to February 16, 1991.
(6) Agreement that no party would oppose a FERC order requiring that
- i J
the Company. make certain filings in the event that the license.
term of the Plant is modified by the NRC. -
(c) Decommissionino Financino Plan. For a discussion of a legal proceeding-in Maine involving the Company's decommissioning financing plan, see the 1
discussion under item 1, BUSINESS, Section (e), " Decommissioning".
ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
)
Not applicable.
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j Maine Yankee Atomic Power Company
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Form 10-K - 1989
)
PART II ITEM 5
_ MARKET FOR THE REGISTRANT'S COMMON E0VITY AND RELATED STOCK-HOLDER MATTERS The Company's Common Stock, owned by the Company's ten utility Sponsors, is not publicly traded. Transfer of the Common Stock is restricted by the o
Company's bylaws. The Company has paid cash dividends on its Common Stock-s to its utility Sponsors in each year.of operation,1973 through 1989. The following table shows cash dividends paid for years 1989 and 1988:
Shares 1989 1988 Outstandino Per Share Per Share t
January-500,000
$ 4.00
$ 1.50 April 500,000 4.25
-5.00 July 500,000 4.25 4.75 October 500,000 4.30 4.50
$19.&
$1LZ1 The payment of dividends on the Company's Common Stock is subject to the following restrictions:
(1) The Company's First Mortgage Indenture the " Indenture") provides that the Company shall not declare or pay any (dividend on any class of its stock, exceot out of earned surplus, and shall not declare or. pay any such dividend or directly or indirectly make-any payment : on account of ' the purchase, redemption, acquisition or other retirement of any shares of its i
stock, unless, after giving effect to-such declaration or payment,- the l
Company's Equity shall be at least.35%-of Plant Construction Financing, and.
i the Company's Common Equity shall be at least 30% of Plant Construction-l Financing. Under the provisions of its two revolving credit' arrangements with banks, the Company may not permit its Equity (as defined in. the Indenture) to be less than 33% of Plant Construction Financing- (as so.
defined) and its Common Equity (as so defined) to be less than 28% thereof.
The Company was in compliance through December 31,. 1989, with those restrictions.
(2)
The Company's Articles of Incorporation provide that so long as any shares of the Company's Cumulative Preferred Stock, 7.48% Series (Sinking
(
Fund) are outstanding, the payment of dividends on Common Stock'(other than dividends in Common Stock) and the making of distributions thereon are limited to 50% of Net Income Available for Dividends on Common Stock for the preceding twelve months if the Common Stock Equity (after such action) is less than 20% of Total Capitalization, and to 75% of such Net Income if such Common-Stock Equity (after such action) is 20% or more but less than 25% of Total Capitalization.
The Company was in compliance through December 31, ~1989, with the dividend restriction of the Articlas of-Incorporation.
10 I
,,i
~.
Maine Yankee Atomic Power Company Form 10-K - 1989 ITEM 6 - SELECTED FINANCIAL DATA (Dollars in Thousands Except Per Share Amounts) 1989 1988 1987 1986 J.935 Selected Income Statement Data:
Electric Operating Revenues
$158,412
$157,097
$144,404
$122,965
$134,785 Earnings Applicable to Common Stock 8,462 9,000 4,499 9,891 9,879 Earnings Per Share of Common Stock 16.92 18.00 9.00
~19.78 19.76 Dividends Declared Per Share of Common Stock 17.05 18.25 8.50
.19.85 20.70 C
Selected Balance Sheet Data:
Total Assets
$419,196
$413,015.
$375,967
$368,399
$370,427 First Mortgage Bonds 58,514 63,412 67,751 72,970 76,750 3
~
Nuclear Fuel Financing Notes 40,000 42,000 30,800 27,950 37,850 g.
Long-Term Fuel Disposal Liability.
84,371
-77,552 72,622' 68,331 64,171 3e*
Trust Fund to Satisfy Long-Term Fuel Disposal Liability 48,122 37,073-26,559 17,091 4,167 5R AE Redeemable Preferred Stock 7,200
-7,475 8,380 8,449 9,055
,7 G7 E!
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-Maine Yankee Atomic Power Company.
Form 10-K - 1989-N_tittti Yankee Atomic Eg,ggr Comoany ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS For a period commencing January 1,.1973, extending for-thirty years.
thereafter, and subsequently extended to 2008, in accordance with the Power Contracts as amended, and the Additional Power Contracts, and subject to-certain limitations, each Sponsor receives its entitlement percentage'of Plant output and.is obligated to pay its entitlement percentage of the Company's total _ costs, including a return on invested capital, regardless -
of the level of operation of the Plant.
The following is management's analysis of certain significant factors which have affected the Company's operating' results and financial condition-for the period 1987 through 1989.-
Ooeratino Results
@neration In 1989 Maine Yankee exceeded its previous annual production record producing 6.9 billion kilowatt-hours.
The previous highest amount in a t
single year was 6.2 billion kilowatt-hours in 1986, which was also a non-refueling year.
)
The following table sets forth the Company's average-cost of-power and generation for the years 1989, 1988 and 1987.
j q
Year l
M M
M i
Averaae Cost of power:
Cents per kilowatt-hour y
M
'M 4
Generation:
l Kilowatt-hours 6,9 Billion 5.0 Billion 4.0 Billion R
i Over the past decade-the Company has made capital investments in the Pl ant.
that increased the net capability ~from approximately 855 megawatts electric e
(net) to 870 megawatts electric-(net). The increase in-generation during.
l 1989 over 1988 reflects not only this increase in net capability but also the effect of not having a scheduled outage for refueling and maintenance i
in 1989. The increased generation for 1988 over 1987L reflects the impact of a non-scheduled 1987 two-month outage for low-pressure turbine vibration analysis and repairs, which occurred after the scheduled refueling and maintenance outage.
12
Maine Yankee Ato2ic Pswer Company
' Form 10-K - 1989
' ~
Maine Yankee Atomic Power Comoany ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
Fuel Exoenses Fuel Amortization expense is based on the cost of (1) ruclear. fuel in the-reactor core that is allocated to the accounting period based on the level of energy production and (2) amortization over the remaining ^useful life of the Plant of the last core of unburned nuclear fuel. Fuel amortization increased in:1989 over 1988 by $3.8 million, which reflects the impact of-increased generation with an offsetting effect of lower purchasing-costs for nuclear fuel' inserted into the reactor during the 19881 scheduled-refueling outage.
.In 1988 fuel amortization increased over 1987 by $7.3 million primarily due to increased generation. This increased generation reflects the impact of c reduced 1987 generation resulting from.the unscheduled turbine repair outage discussed above.
Fuel Disposal expense results from a disposal fee of $1.00 per megawatt-l hour of net generation which is assessed _by the DOE and.is paid quarterly.
Fuel Disposal expense therefore fluctuates with the level of generation.
Doeration Excense
-While total operation expenses had little change in 1989 over 1988, costs
}
in certain areas did increase in 1989, as follows:
i (1) Increase over 1988 in the State of ' Maine assessment for the development of a low-level radioactive. waste disposal or = storage facility.
(2) A full year's amortization of materials and supplies inventory that is expected to remain unutilized at the end of the Plant's life as 4
authorized by the FERC effective August 16, 1988.
(3) Increased training costs.
(4) Operating costs for the Plant security program improvements.
l (5) The recording in 1989 of actual costs for the 1988 refueling and l
maintenance outage, which exceeded December 31, 1988,. estimates.
l (6) Increased operation expenses for the increased on-line. Plant availability resulting from the absence of a scheduled refueling and maintenance outage in 1989.
l Operation expense increased by $6.7 million in 1988 over 1987.
.- Thi s increase resulted from (1) contracted support services for the 1988' scheduled outage, (2) increased NRC support fees, and (3) State of Maine fees associated with the Maine Low-level Radioactive Waste Authority, which was created to provide for a low-level waste facility for Maine.
13 a
Maine Yankee Attmic Power Company Form 10-K - 1989 Maine Yankee Atomic Power Comoany-ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION-AND RESULTS OF OPERATIQtG (continued)
Maintenance Exoense Maintenance expense decreased in 1989 by $9.5 million primarily-from the absence in 1989 of a scheduled refueling and maintenance outage as incurred-in 1988.
The next scheduled refueling and maintenance outage is planned from April 7 to June 2,.1990.
Maintenance ~ expense. decreased by $3.6 million-in 1988 from 1987.
This decrease primarily reflects-the absence in 1988 of a non-scheduled outage
?j of similar duration as that incurred in 1987 to repair the low-pressure turbine rotors, q
Depreciation Exoense Depreciation expense increased for 1989-an'd 1988 due to additions in depreciable property placed in service and, a full-year impact - of the increase in depreciation rates allowed by the FERC effective August 16,-
1988.
Decommissionina Costs I
Decommissioning costs increased by $2.7 million for 1989land $1.9 million -
for 1988. The increases resulted from the 1988 FERC rate case: settlement 1
agreement, which increased the decommissioning collection from $4,796,000 -
J to $9,073,943 annually, effective August -16,1988.
j Income Taxes The decrease in federal and state income taxes of $7.1 million-in 1989 from-1988 resulted from an increase in the amount of. amortization of investment 1
tax credit, primarily related to fuel, as well as the flowback of excess deferred tax reserves created from higher tax rates'in prior years.
Income tax expense increased in 1988 as a result of' the reversal of previously amortized investment tax credits.
The utilization of those 1
credits was deferred as a result of the deductions for decommissioning 11 expense allowed for the years 1984 through 1986.
Property Taxes The increase in property tax expense of $1.6 million for 1989 over 1988 levels reflects increases in the tax rate and assessed property values. -
14
I Maine' Yankee Atomic Power Company Form 10-K - 1989-Maine Yankee Atomic Power Company ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
Other Income. Net Other Income for 1989 and 1988 primarily reflects earnings associated with-the. Company's prior fuel disposal trust-fund. The primary impact on Other Income during 1987 was the expenditure of $5.6 million associated with the opposition to an initiated referendum bill to shut down the' Company's nuclear generating plant which was defeated by the electorate on November 3, 1987.
Expenditures for the purpose of influencing public opinion with respect to referendum issues are not recoverable through the Company's cost of service rate and therefore lower the Company's return on equity.
Fuel Discosal Interest The Company is accruing interest on its obligation to the DOE for-fuel burned prior to April 7, 1983.-
This interest expense -is compounded quarterly on the DOE obligation at the 13-week Treasury Bill rate.
The-interest expense associated with this, liability is reflected as: Interest Charges - Fuel Disposal Liability.
During 1989 and 1988,. the increases l
1 in expense reflect the impact of increased average interest rates 'and the.
quarterly compounding of interest on the increasing obligation.
Fuel Finq1cina and Other Bank Note-Interest The average level of borrowings on fuel financing notes.and bank notes was -
1
- higher during 1989 than in 1988, primarily from capital expenditures related to the 1988 outage.
This higher ' level of borrowings, along with increased interest rates,'resulted in higher interest expense in 1989.
The average level of borrowings on fuel financing notes was lower in 1988 than in 1987. This lower level of borrowings resulted in lower interest-expense in 1988.
j Allowance for Funds Used
)
I Fluctuations in the amount, of allowance for funds (equity and borrowed)'
normally occur as the result of changes in -the level-of investments in construction and nuclear fuel in process, and/or the ~ rate used for capitalization of these funds. For 1989, Allowance for Funds Used During Construction ("AFC") and Allowance for Funds Used for Nuclear Fuel = ("AFN")
were higher than in 1988 due to increased levels of investments in construction and fuel-in process.
i 4
15 I
1 Maine Yankee' Atomic Power Co:panyl Form 10-K - 1989:
Maine Yankee Atomic Egg,C Comoany ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS-(continued)
- Net Income Net income decreased by $572,000 in 1989 as a result of the reduction in-the Company's rate of return on common-equity from; 13.6%. to 12.9%,-
effective-- August 16, 1988, in connection -with the 'FERC settlement agreement.
Net Income was $4.5 million higher in 1988 over 1987, principally due to the referendum expenditures not recoverable through the Company's cost of service rate as discussed above in Other Income, Net.-
Liouidity and Capital Resources Caoital Resources Cash flow needs for '1989 were provided from Operating Activities-in the-amount of $55.1 million, j
The primary use of cash was for various corporate purposes such as:-- (1).
l nuclear fuel acquisitions of $3.8 million, (2) construction of operating 5
property, which utilized $18.5 million, (3) trust fund investments of $22.3 million to meet future-Plant Decommissioning costs and-prior-Spent Fuel Permanent Disposal, (4) dividend payments of $9.0 million, and (5) the net redemption of overall debt of $3.7-million.
i i
The Company's current 1990 budget for construction of electric property is
$18.9 million, inclusive of-AFC, and for procurement. of nuclear -fuel is j
$20.7 million, inclusive of AFN. See Note 11 to the Financial Statements, a
" Commitments and Contingencies", for additional information concerning the Company's 1990 construction program -and the projected acquisition of nuclear fuel requirements for 1990 through 1994.
At December 31, 1989, the Company had capital resources available from secured and unsecured lines of credit totaling $91.0 million, of which
$49.0 million was utilized.
Effective August 31, 1989, the Company i
replaced its $50.0 million MYA Fuel Company facility with. a $50.0 million 1
secured credit facility with a group of banks. Effective January '30,1990, I
the Company replaced its $20.0 million secured Eurodollar facility with a-
$35.0 million secured Eurodollar credit facility with a group of major international banks, raising the total available credit facilities, i
including bank lines of $21'.0 million, to $106.0 million.-
Each of the Maine Yankee Sponsors has also agreed under a Capital Funds Agreement with the Company to provide a percentage equal to their respective ownership percentage of the Company's capital requirements not obtained from other sources, subject to obtaining necessary authorizations of regulatory bodies in each instance.
All such obligations are subject to the continuing jurisdiction of various federal and state. regulatory bodies.
16 i
a
i-
-o Maine Yankee Ato2ic Power Company Form 10-K - 1989 Maine Yankee Atomic Egygtt Comoany ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
Caoital Resoureti (continued)
The Company, as well as the nuclear electric industry in general, has been challenged by common problems in recent years including those of increasing operating costs and expenditures. for plant modifications attributable to more stringent regulatory requirements and uncertainties caused by political involvement in nuclear utility regulation. -It"is-not possible at this time to predict what impact these uncertainties will-have on the future financial operation of the Company.
Liouidity In addition to funding its short-term. needs, the Company must also fund the payment of its long-term prior spent fuel-disposal liability of $50.4 million and accrual of interest from April 7,1983, to'the time of-payment, which through December 31, 1989, amounted to $34.0 million.- Maine Yankee is funding an external trust to provide for payment of this liability.
Payment from the trust to the DOE is scheduled for not earlier than January 1998.
Funding of the trust is.being made by: deposits by the Company of-
$4.1 million at least semiannually from December.1985 through May 1995, totaling $86.8 million. The estimated liability including interest due at time of payment is projected to be approximately $160.0 million. The trust-fund deposits plus estimated earnings are projected to meet this total liability if funding continues without material changes.
The Company must also provide for the eventual decommissioning of the Plant' at the end of its operating life. ' The Company's 1987 external engineering study estimated the cost of decommissioning to be' $142,478,000 plus a contingency of $35,620,000 for a total of $178,098,000. (in mid-1987 dollars). The Company is currently allowed to collect $9,073,943 annually in rates, based on the FERC-approved rate case settlement amount of
$167,000,000 (in mid-1987 dollars) with assumed interest income. earnings by the trust funds of 6.30% and estimated inflation of the $167,000,000 at 5.00% per year until time of expenditures for decommissioning. The amounts collected in cost of service are being deposited into an external trust, i
These amounts, together with the interest income earnings, will be used to meet the Company's decommissioning obligation.
17
i Maihe Yankee Atomic P;wer_ Company Form 10-K - 1989 Maine Yankee Atggig Ego 70mDany ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY' DATA i
INDEX OF FINANCIAL INFORMATION The' information _ required to be furnished -in respon'se to 'this Item 11s submitted on the following pages:
l E191 Report of Independent Public Accountants 19-Financial Statements:
Statement of Income-for each' of the three years-ended December 31, 1989 21 Balance Sheet at December-31,1989 and 1988 -
20 Statement of Capitalization at December 31, 1989 and 1988.
=
'23 Statement of Changes in Common-Stock Investment for each of the three years ended December 31, 1989 24-Statement of Cash Flows for each of the three years ended December 31 1989 25 a
Notes to Financial-Statements 26 1
s i
i i
i i
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.g 18
Maine Yankee Atomic Power Company Form In-K - 1989 REPORT OF INDEPENDENT PUBLIC ACC0uNTANTS-TO THE BOARD OF DIRECTORS OF MAINE YANKEE ATOMIC POWER COMPANY:
We have audited the accompanying. balance sheet and statement-of capitalization of MAINE YANKEE ATOMIC POWER COMPANY (a Maine corporation) as of December ~ 31,1989 and.1988, and the related statements of income,.
changes in common stock investment and cash flows for each of.the three years in the period ended December 31, 1989.
These financial statements are the responsibility of the Company's management. Our responsibility is to express an opinion on these financial: statements based on our audits.
We conducted our audits in-accordance with generally accepted auditing standards. Those standards require that we plan and perform the' audit to; obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit includes examining, on a test basis, evidence supporting the amounts and disclosures.in the financial statements.
An audit also includes assessing the accounting principles used and significant estimates made by management, as.well as evaluating the overall financial statement presentation. We believe taa?, our audits provide a reasonable basis-for our opinion.
In our opinion, the financial statements referred to above present fairly,-
1 in all material respects, the financial position of MAINEt YANKEE ATOMIC' q
POWER COMPANY as of December 31,1989 and 1988, and the results of its 1
operations and its cash flows for each of the three years in ~ the period j
ended December 31, 1989, in conformity with generally accepted accounting j
principles.
1 Our audits were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules listed in the index of the financial statement schedules. are presented for purposes of '
l 3
complying with the Securities and Exchange Commission's rules and are not a required' part of the basic financial statements.
This information has been subjected to the auditing procedures applied in our. audits of the-basic financial statements and, in our opinion, is fairly stated in all material respects in relation to the basic financial statements taken as I
a whole.
o i
ARTHUR ANDERSEN & CO.
Boston, Massachusetts,
=l March 26, 1990.
19
Maine Yankee-Atomic Prwer Company _
Form 10-K - 1989 tigjjlg Yankee Atomic Egy.gr Comoany-STATEMENT OF INCOME (Dollars in Thousands Except Per Share Amounts)
Year Ended December 31.
19.68 lEB1 ELECTRIC OPERATING REVENUES
$158.412 $157.097 $144.404 OPERATING EXPENSES Fuel Amortization (Note 1) 33,060 29,229 21,893:
Disposal Cost (Note 1)
'6,942-5,917 4,043' Operation 55,341 55,004
'48,257
' Maintenance.
10,123-19,594 23,206' Depreciation (Note 1) 13,073 10,427 9,465-Decommissioning (Note 1) 9,074
~6,406
- 4,464 1
Taxes.
d Federal and State Income (Note 2)
(1,500).
5,562 4,831; L!
Local Property.
8.577-6.956 6.294
- {
Total Operating Expenses 134.610 138.195 122.453 j
OPERATING INCOME 23,802 18,902' 21,951 I
4 OTHER INCOME (EXPENSE)
Allowance for Equity Funds Used During Construction (Note 1) 177
-145 188_
y For Nuclear Fuel (Note 1) 4 16 Other, Net 1.545 2.358
. (4.667)
INCOME BEFORE INTEREST CHARGES 25.524 21.409 17.488-INTEREST CHARGES Long-Term Debt (Note 5) 4,755 5,181 5,839 j
Fuel Disposal Liability (Note 1) 6,819' 4,930 4,291 i
Fuel Financing Notes (Notes 6, 7 and 8) 4,111 1,877 2,298 i
Other Interest Charges (Note 4) 1,655 415 433 Allowance for Borrowed Funds Used During Construction (Note 1)
(172)
(105)
(111)
For Nuclear Fuel (Note 1)
(665)
(482)
(392)
Total Interest Charges 16.503 11'.816 =
12.358 3
.i NET INCOME 9,021 9,593 5',130
- i Dividends on Preferred Stock 559 593 631' EARNINGS APPLICABLE TO COMMON STOCK
$ 8.462 $ 9.000 $ 4.499 SHARES OF COMMON STOCK OUTSTANDING 500.000 500,000 500.000 EARNINGS PER SHARE OF COMMON STOCK 16.92. $ 18.00 $
9.00-DIVIDENDS DECLARED PER SHARE OF COMMON STOCK 17.05 $
18.25 $
8.50 The accompanying notes are an integral part of these financial statements.
20
Maine Yankee Atomic Power Company' Form 10-K - 1989 -
Maine Yankee Atomic E9.RI Comoany BALANCE SHEET (Dollars in Thousands)
ASSETS December'31.
1162-193H ELECTRIC' PROPERTY,- at Original Cost (Note 5)-(Sch. V.)
$347,116-
$347,764 Less: Accumulated Depreciation and Amortization-(Note 1) (Sch. VI) 128.085 121.853 219,031
<225,914 Construction Work in Progress 8.286 559' i
Net Electric Property 227.317:
226.473; NUCLEAR FUEL, at Original Cost (Note 1) (Sch..V) j Nuclear Fuel in Reactor 122,173 125,225 Nuclear Fuel-Spent 246,412 242,249 1
Nuclear Fuel-Stock 9.167
'13.425 377,752 380,899' Less: Accumulated Amortization (Note 1)
,1 (Sch. VI) 339.216 306.155
- 38,536 74,743 l
Nuclear Fuel in Process 26.187-
-8.916 Net Nuclear Fuel 64.723 83.659 Net Electric Property and Nuclear Fuel 292.040, 310.132 I
CURRENT ASSETS 1
. Cash (Note 4) 596.
466 l
Acccunts Receivable 18,155-24,093 Materials and Supplies, at Average ' Cost (Note 1).-
10,169:
8,529 Prepayments 4.832-
-3.543
. f Total Current Assets 33.752 36.631 DEFERRED. CHARGES AND OTHER ASSETS
]
Trust Funds (Note 1) d Fuel Disposal-48,122 37,073 P1 ant' Decommissioning-38,884-27,678 Accumulated Prepaid Income Taxes (Note 2) 1,209 L285-Other Deferred Charges and Other Assets 5.189 1.216 Total Deferred Charges and Other
'l Assets 93.404
- 66.252 -
l
$419.196
$413.015' The accompanying notes are an integral part of these fiilancial statements.
j 21
4...
j L.;
Maine Yankee.Atomie Power. Company Form 10-K - 1989.
titing Yankee Atomic Egy.gt Comoany BALANCE SHEET (Dollars-in Thousands)
STOCKHOLDERS' INVESTMENT AND LIABILITIES l
December 31.
IME 1116 q
CAPITALIZATION (See Separate Statement)
Common Stock Investment
$ 67,961 _
$'68,024 Redeemable Preferred Stock-7,200 7,475-Long-Term Debt 58.514 63.412 j
Total Capitalization '
133.675 138.9111 T
- LONG-TERM FUEL DISPOSAL LIABILITY (Note 1) 84.371~
77.552 NUCLEAR FUEL FINANCING.N0TES (Notes.6, 7 and 8) 40.000 42.000-a CURRENT LIABILITIES Notes Payable to Banks (Note 4) (Sch. IX) 9,000' 5,500'
. Current' Sinking Fund Requirements (Notes 5 and 9) 275-301-l' Accounts Payable
'18,947, 24,346~-
Fuel Disposal Cost Payable (Note 1)-
1,565 265 Dividends Payable
.2,265:
2,140; Accrued Interest and Taxes
_2,111 2,671; Other Current Liabilities 432 702 Total Current Liabilities 34.595-35.925 COMMITMENTS AND CONTINGENCIES (Note 11) l RESERVES AND DEFERRED CREDITS Plant Decommissioning Reserve (Note 1).
(Sch. VIII) 39,700-.
28,460 Deferred Credits Accumulated Deferred Income Taxes (Note 2) 68,921' 72,815-Unamortized Investment Tax Credits (Note 2) 10,215-9,928-4 Unamortized Gains on Reacquired Debt-(Note 1) 6,785 7,041 Other Deferred Credits 934 383-Total Reserves and Deferred Credits 126.555 118.627
$419.196
$413.015 t-The accompanying notes are an integral part of these financial statements.
i L
22 q
-b.-
Maine-Yankee Atooic Power Company Form 10-K - 1989 liging Yankee Atomic EQggt Comoany STATEMENT OF CAPITALIZATION (Dollars in Thousands)
December 31.
1981 12B1 COMMON STOCK INVESTMENT Common Stock, $100 Par Value, 500,000 Shares Authorized and Outstanding
$ 50,000
$ 50,000 Other Paid-in Capital 16,745
'16,754' Capital Stock Expense (113)
-(122):
Gain on Redemption of Preferred Stock 1,089 1,089 Premiums on Preferred Stock 110 110-I Retained Earnings' 130; 193-67.961 68.024 REDEEMABLE PREFERRED STOCK - 7.48% Series,
$100 Par Value, Authorized 170,000 Shares, 1
Outstanding 74,750 (Note 9) 7,475
'7,475
)
Less:
Current Sinking Fund Requirements 275
_7.475 7.200 n
LING-TERM DEBT (Note 5) i First Mortgage-Bonds 1
Series A - 9.10 % due May 1,.2002 32,405 34,914 i
Sories B - 8 1/2% due May 1,:2002 20,237 22,301 Series C - 7 5/8% due May 1, 2002-
__L9.13 6.554
-l 58,561 63,769 1
Less:
Current Sinking Fund Requirements.
301 Unamortized Debt Discount, Net of Premium.
47 56.
58.514 63.412 Total Capitalization
.$133.675
$138.911 The accompanying notes are an integral part of these financial' statements'.-
-]
i 23 l
J.f t.
8'~
Maine Yankee-Atomic Power Company Form 10-K - 1989 Maine Yankee-Atomic Power comoany.
STATEMENT OF CHANGES IN COMMON STOCK INVESTMENT
- for the Three Years Ended December 31, 1989 l(Dollars in Thousands)
Amount ati.
Retained Shares Par Value. Other. Net Earninos Total A
B lance-December 31, 1986 500,000
$50,000
$17,820' 68 $67;888 Add (Deduct):
Net Income __
5,130 5,130 Cash Dividends Declared on --
Common Stock (4,250) L(4,250).
Preferred Stock
.(631).
-(631)-
. Redemption of Preferred Stock 2
2 Balance-December 31,.1987 500,000 50,000 17,822-317_
68,139 Add (Deduct):
Net Income 9,593' 9,593 Cash Dividends Declared on -
Common Stock
~
(9,124).(9,124)
Preferred Stock (593)-
(593)
Redemption of Preferred Stock 16 16-Other
'(7)
(7)
Balance-December 31, 1988 500,000 50,000 17,831-193 68,024~
Add (Deduct):
j Net Income 9,021.
9,021' Cash Dividends Declared on -
i Common Stock
~
(8,525)
(8,525)
Preferred Stock (559).
(559)
Balance-December 31, 1989 500.000
$50.000
$17.831
$ __119 $67.961 1
I The accompanying notes are an integral part of these-financial statements.
i 24
Maine Yankee Atomic Power Company:
Form 10-K - 1989-H L
Haht Yankee Atomic Emotr Company b
STATEMENT OF CASH FLOWS' (DollarsinThousands)
Year Ended December 31.
HS).
US.B D.91 ODeratino Activitles Net income
$. 9,921
$ 9,593
$ 5,130 ItemsNotRequiring(Providing) Cash Fuel Amortization
'33,060 29,229-21,893-Depreciation and Decommissioning 22,147 16,833 13,929 Deferred Income Taxes and Investment Tax Credits, Net (4,531)
-2,454 3,232 Allowance for Equity Funds Used for Nuclear Fuel and During Construction (177)
(149).
(204) long-Term Fuel Disposal Interest, Net of AFN Recovery 6,438 4,593 4,053 Other, Net (3,565)
(1,933) 1,060 -
Changes in Certain Assets and liabilities Accounts Receivable 5,938
.(10,085) 313 Other Current t.ssets '
(2,929)
(96)
(664)
Accounts Payable (9,747) 11,158 613
. Accrued Interest and Taxes
_(560)
.1.350 11,438).
Net Cash Provided by Operating Activities 55.095 62.947 47.914-Investino Activities Acquisition of Nuclear Fuel (14'124)
(24,558)'
(15,199')
Construction of Electric Property (13,588) '(29,449)
(7,440)
Changes in Accounts Payable - Investing' Activities - Nuclear Fuel 10,366 72
'(1,682)'
- Construction Of Electric Property-
_(4,863) 6.220 (1,607)-
Investment income in Decommissioning Trust 2,166 1,225 1924 Trust Fund Investments Fuel Disposal (11,049)
(10,514)
-(9,468)=
Plant Decommissioning (11.206)
(7.317) f5.319)'
4 Net Cash Used by Investing Activities (42.298)
(64.321)
(39.791) 1
[1 hts ino Activities
<f issuances (Redemptions)
Bank Notes. Het 3,500
'5,500 (775)
-1 Fuel Financing Notes, Net
-(2,000) 11,200
. 2,850
.j Long-Term Debt (5,208)-
(5,520)
.(3,755)
{
Preferred $tock-Dividend Payments (905)
~(69)
Common Stock (8,400)
(7,875)
(5,725)
Preferred Stock
. (559);
. f610)
(632)-
Het Cash Provided (Used) by Financing Activities (12.667)
.1.790
-- 11LMs)
Net increase in Cash and Cash Equivalents 130 416 17 x
Cash and Cash Equivalents at Beginning of Year 466 50
))
Cash and Cash Equivalents at End of 1
Year
$J 466 5
50 Supplemental disclosure of cash flow information:
Cash paid during the year for:
Interest (netofamounts' capitalized)
$ 11,265
$ 7,175 5 8,581-Income taxes 5 3,083
$ 3,140
$ 3,303 Disclosure of accounting policy:
For purposes of the statement of cash flows, the Company considers temporary cash investments to be cash and cash equivalents.
The accompanying notes are an integral part of these financial statements, 25 1
L L
c, Maine Yankee Atomic Power-Company
~ Form 10-K - 1989 Maine Yankee Atomic Epwtr Company NOTES TO FINANCIAL STATEMENTS'
- 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING-POLICIES The comoany:.
The ~ Company: owns and ioperates a pressurized-water nuclear-powered electric generating ' plant with a current rated net-capacity of approximately 870 u.egawatts. (the " Plant")..
The Plant commenced commercial operation on January 1, 1973. 'The following New England electric utilities own all of the Company's common stock:
Ownership Soonsor/Particioant-Interest Central Maine Power Company.
38%.
New England Power Company.
20 The Connecticut Light and. Power Company 12-Bangor Hydro-Electric Company 7
Maine Public Service Company 5
Public Service Company of New Hampshire 5
Cambridge Electric Light Company 4-Montaup Electric Company 4
l Western Massachusetts Electric Company 3-Central Vermont Public Service Corporation
__Z
.1,Q,q%
{
For a period commencing January 1,1973, extending for thirty years thereafter, and subsequently extended to 2008, in accordance with the Power Contracts as amended.and the Additional Power Contract subject to certain limitations, each. participant. receives. its-entitlement percentage of. Plant output and.is obligated to pay-its entitlement-percentage of the Company's total costs, including a return on invested capital, regardless of the level of operation of the Plant.
On January-28, 1988, Public Service Company 'of New Hampshire, a. 5%
Stockholder of the Company, filed for protection from its creditors under Chapter 11 of the. Federal Bankruptcy Code. -The Company believes i
that in light of the operating history-of the: Plant and the relatively.
i low cost of power produced by the Plant,.it~is unlikely this event'will materially and adversely affect the continued operation of the Plant.
Reaulation: The Company is subject to the regulatory authority of the Federal Energy Regulatory Commission ("FERC"), the Nuclear. Regulatory Commission ("NRC") and the Maine Public Utilities Commission ("MPUC")
and other federal and state agencies as to rates, accounting, operations and other matters.
i 1
26
.e-Maine Yankee' Atomic Power CompanyJ 1
Form 10-K - 1989
~i Maine Yankee A_1.onig Eqw_g.t Comoany NOTES TO FINANCIAL STATEMENTS q
- 1.
SUMMARY
OF SIGNIFICANT_ ACCOUNTING POLICIES (continued)-
j Deoreciation:. Depreciation is _ provided using a composite remaining life method designed to fully depreciate the original cost of electric plant over the Plant operating life.
Under the composite method, at-l the time _ depreciable property is retired, the original cost, plus cost of_ removal, less salvage, of such property. is charged to accumulated i
depreciation.
Decommissioninai The Company accrues for estimated decommissioning costs -in accordance with FERC rate orders.
The FERC approved an 4
uncontested settlement by order dated September 20, 1988, for an annual decommissioning charge of $9,073,943 based on estimated decommission-ing costs of $167,000,000 (in mid-1987 ~ dollars), exclusive of any:
income tax liability, effective-August'16, 1988.
l The Company's most recent study, conducted in 1987 by' an external engineering consultant, estimated decommissioning : costs to-be-
$142,478,000 plus a. contingency of ' $35,620,000 for a. total _'of
$178,098,000 (in.mid-1987 dollars).
- The Company recognizes ~ the-relative uncertainty of decommissioning,. the' changing technology of decommissioning and the possibility, of new requirements of law and therefore recognizes the need to; monitor:and adjust decommissioning collections through' supplemental rate filings.
Funds ' collected for decommissioning are deposited in - an external irrevocable trust-pending their ultimate use.-
Earnings on-the investments in the decommissioning trust are reinvested.. The trust.
funds are restricted for use in paying for;the decommissioning.of the l
Plant. The investment income of the trust is recorded as an addition p
to the plant decommissioning reserve in accordance with the-Company's i
rate-making policies. For further discussion on decommissioning issues l
see note 11, Commitments and Contingencies, of the Notes to Financial-l Statements.
l.
Amortization of Nuclear Fuel: The cos{ of nuclear fuel in the reactor.
is amortized to Fuel Expense based on the ratio of energy produced during the period to the estimated total core capability.
L Effective August 16, 1988, the Company began amortizing to expense the estimated costs of the unburned nuclear-fuel which is expected to be in the reactor core at the expiration of the Plant's NRC operating license life in 2008. These costs are being amortized over the period ending October 2008.
I Amortization of Materials and Supplies:
Effective August 16, 1988, the Company began amortization of materials and supplies inventory. that is expected to remain unutilized at the end of the Plant's life. This.
L amortization is based on the current inventory balance less the i
L 27 q
4 ~
4 t
Maine Yankee Atomic Power Company '
J Form 10-K - 1989 Maine Yankee Atomic Power comoany NOTES TO FINANCIAL STATEMENTS
' l.
SUMMARY
OF.SIGNIFICANT' ACCOUNTING POLICIES (continued) accumulated amortization. This cost is being amortized over the period ending October 2008 on a monthly basis using the prior month's ending balances. Accumulated amortization for 1989 and 1988 was $644,000 and
$167,000, respectively.
Fuel Disoosal' Cost: _In-1983 the Company entered into a-contract with' s
the United States Department of Energy ("D0E") for disposal 'ofE its.
((
spent nuclear fuel, pursuant to which a fee of $1.00 per megawatt-hour is assessed :against currentr generation and is paid-to the -DOE 1
quarterly.
The Company also has 'an ' obligation of $50,367,000 with respect to' generation prior to April 7,.1983, all of which the Company '
has already collected;from its customers,-but for which a reserve wass j
not funded.
The Company has elected under terms of this-contract to make a single payment of this obligation prior to the first delivery-of spent fuel to DOE, scheduled to ' begin no earlier than 1998i Interest on the obligation accrues at the 13-week Treasury Bill rate compounded on a quarterly' basis from April 7,1983,. through:the-date of the actual-payment and is billed under the terms -of the Power-Contract.
Interest accrued and billed through - December 31, 1989, amounted to $34,004,000. The Company has' formed a trust to provide for payment of this long-term fuel obligation.
Funding of the. trust is being made by deposits.of approximately
$4,100,000;:at' least semiannually, which began in December '1985-and will continue throughz May 1995 totaling approximately: $86,753,000.
The trust ' funds are included in Deferred Charges and Other Assets on the accompanying-balance sheet.
The trust fund deposits-plus ' estimated earnings are projected to meet the total estimated future liability of $160,021,000.
Allowance for Funds Used Durina Construction ("AFC')- and Allowance for j
Funds Used for-Nuclear Fuel ("AFN"):
Under the Company's April'1985 and September 1988 rate case settlement agreements, the Company earns.
a current return on up to 50% of Construction Work in Progress ("CWIP")
and 50% of Nuclear Fuel in Process: ("NFIP"),. subject to certain limitations.
The Company records the net cost of borrowed funds and.
the allowed rate of return on equity funds used to finance its remaining construction and nuclear fuel acquisition costs as AFC and' AFN. The amount of.the allowance recorded is determined by multiplying-the applicable average monthly balance of CWIP and NFIP by the weighted average. cost rate of the capital used to finance the respective -
additions.
28 l
Maine Yankhe Atomic Power Company.
Form 10-K - 1989-Maine Yankee Atomic Power Comoany L
NOTES TO FINANCIAL STATEMENTS
-l 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES:(continued).
l The following table contains the. rates used'for the most recent three annual periods:
L AFC AFN j-on CWIP on NFIP-1989 9.95%
-11.93%
1988 9.56 9.17
.i 1987 10.28 8.74~
l i
Unamortized Gain or loss on Reacauired Debt: Gains and11osses on bonds-
- j reacquired to satisfy sinking fund requirements of First Mortgage Bonds 1
are deferred and amortized to income over the remaining original terms-j of the applicable series as prescribed by the Uniform System of j
Accounts of the FERC.
l 2.
INCOME TAX EXPENSE 4
-i The components of federal' and state income taxes - reflected in: the 1
Statement of Income are as follows:
J Year Ended December 31.
1932 1933 1931 (Dollars in Thousands).
Current
$'1,821
$ 2,186 Sil,251 j
Deferred (4,187) 4,800 3,709.
l Investment tax credits, net 288 (2.691)
(1.570) l (2.078) 4.295' 3.390-1 State Current 1,128 922 348 Deferred
.(630) 345 1.093-
- I 49S 1.267 1.441 Total federal and state income taxes
$( @ )
$m
$g Deferred income taxes are provided to recognize the-income tax effect l
of reporting certain transactions in different years for income tax.
and financial reporting purposes in accordance with the rate-making-i policies of the FERC. Provisions for' deferred income taxes reflect the i
tax effect of all timing differences, primarily depreciation and amortization of property and nuclear fuel and decommissioning.
l I
29
-i
j
- ,y
.I e
Maine Yankee' Atomic Power'CompanyL
+
Form 10-K - 1989 Maine Yankee Atomic Power comoany j
NOTES TO FINANCIAL STATEMENTS 2.-
INCOME TAX EXPENSE (continued) t Excess deferrals were created as a result of the reduction in 'the' federal income tax rate to 34 percent.. The excess deferral related to accelerated tax depreciation will be' flowed back as a cost of service reduction over the period that the depreciation ' timing difference-reverses (h, the period that: straight-line depreciation' exceeds
~ accelerated depreciation). The excess deferred tax reserve related.to =
other book / tax timing differences' is being flowed back on-a r
-straight-line basis over-the remaining book life of < the plant facilities.
Investment tax credits utilized. to reduce federal income taxes currently payable are deferred 'and amortized over the livesi of the related assets.
At December 31, ;1989,- the - Company. had available approximately $1,700,000 of additional investment tax credit.
The following table reconciles the statutory federal income tax rate to the rate determined by dividing the total federal income tax expense by income before that. expense.
Dollars in Thousands a
1989 1988 1987 r
i Amount Amount Amount-Statutory federal income tax rate
$ 2,360 34.0 $ 4,722 34.0
$ 3,404' ;40.0 Increase (reduction) in
~
i taxes resulting from:
Investment tax credits (2,248)
(32.3)-
1,145 8.2
'(2,441).(28.7)
Referendum expenses 2,202 25.9 Flowback of excess deferred income taxes (1,513)
(21.8)
(1,267)
(9.1)
Non-taxable growth-Spent Fuel Trust (956)
(13.8)
-(775)
(5.6)
(492)
(5.8)-
Other E79 4.0 470 3.4 717-8.4 g
Calculated rate
$(1,d72)
(M) $ g M
$ 3.390 M.
l I
In December 1987, the Financial Accounting Standards Board-("FASB")
issued a new standard on accounting.for income taxes.
The Company.is required to adopt the new accounting and disclosure rules no later than in its.1992 financial statements, although earlier implementation 'is permitted.
The Company expects to adopt the new standard effective January 1,1992, and does not plan to restate prior periods.
The 30 L
i
Maine Yankee Ato2ic Power Company i
Form 10-K - 1989 MalDe liLD_kig Atomic Power Comoany NOTES TO FINANCIAL STATEMENTS 2.
INCOME TAX EXPENSE (continued)
. standard requires the use of the liability method 'under which existing.
deferred taxes will be adjusted currently to reflect the effect'of tax-
' rates applicable to the years in which these taxes would become payable.
The Company has not completed its-analysis of-the impact of-this new accounting standard, but, based on current ratemaking and tax law, and since income taxes.are fully: recoverable as a component of-the Company's cost of service rate,- there will not be an impact on earnings, upon adoption of the new standard. There.will be adjustments: required-to accumulated deferred taxes. and the recognition-of. a liability to.
customers for deferred taxes established : in - excess of : the - amount.
calculated using income tax rates applicable to'.1992 and future' years..
3.
RATEMAKING MATTERS In January 1988 the Company filed a request with the FERC' to modify certain billing calculations and to: increase _ its: collection for 1
decommissioning.
The. request sought FERC' approval to decrease the A
level of return on common equity from 13.6% to'13.5%, to provide.for-l depreciation expense based on the recognition of. shorter useful lives 1
for certain classes of assets: than had previously' been. assumed, to 1
provide for the. amortization of materials and supplies and the lastc fuel core and to increase the: annual 1 decommissioning collection from
$4,796,000 to. $14,466,~467 based on-a _ total estimated cost ~. of
$178,098,000 and on full recovery by 1998, - rather1than.over the NRC operating license life of the Plant, j_a,., to 2008.
After discussions among the Company, the'FERC Staff, and-intervenors, and rejection by FERC of the shorter decommissioning collection period, a settlement agreement resolving all outstanding issues under this rate ~
proceeding was approved by the FERC by order dated. September 20, 1988, with rates effective August 16, 1988.
The. settlement. agreement provided for the following:
(1)
Rate of return on common equity at 12.9% per annum.
j (2) Annual decommissioning collections of $9,073,943,_- (based on a 1
total estimated cost of $167,000,000) exclusive of any-income tax:
l liability for the remaining license life.
i (3) Depreciation expense based on the recognition of shorter useful
}l lives for certain classes of assets.
.j
-i (4) Amortization of materials and supplies and last core fuel.
]'lJ 31 I
c.
Maine Yankee Atomic Power Company Form 10-K - 1989 tig.ing Yankee Atomic E9Et.t Comoany NOTES TO FINANCIAL STATEMENTS
- 3. RATEMAKING MATTERS-(continued)
(5) Agreement by the Company n,t to propose an increase and by other parties not to make a
filing to decrease the annual decommissioning charges to take effect prior to February 16,1991.
(6) Agreement that no party would oppose a FERC order requiring that the Company make certain filings in the event that the license term of the Plant is modified by the NRC.
4.
NOTES PAYABLE TO BANKS The Company had bank' lines of-credit totaling $21,000,000 as _ of December 31, 1989, of which $20,000,000 requires an annual fee of 1/4%
of the line.
The remaining $1,000,000 line requires a compensating balance of 10% of the line and 10% of any outstanding balance. As of December 31, 1989, $9,000,000 was outstanding under the lines of credit.
5.
FIRST MORTGAGE BONDS The annual sinking fund requirements of the First Mortgage Bonds currently outstanding for each of the years 1990 through 1994 amount to $4,775,000. Bonds repurchased in advance amounted to $5,039,000 at December 31, 1989, and $4,00b,000 at December 31, 1988.
Under the terms of the Ir. denture securing the First Mortgage Bonds, substantially all electric plant of the Company is subject to a first mortgage lien.
6.
MYA FUEL COMPANY NOTES Effective August 31, 1989, the Company replaced its loan Agreement 4
covering the issuance of up to $50,000,000 principal amount of promissory notes to MYA Fuel Company, with a $50,000,000 secured credit facility with a group of banks.
(See Note 7.)
Certain other information relating to the terminated MYA_ Fuel Company. loan arrangement is as follows:
1 1
32.
e Maine Yankee Ato ic Power Company Form 10-K - 1989 Maine Yankee Atomic Eng.t Comoany l
NOTES TO FINANCIAL STATEMENTS 6.
MYA FUEL COMPANY NOTES (continued)
Through Year Ended Auaust 31.
December 31.
1181 1168 1101 (Dollars in Thousands)-
$27,000
$20,800 i
Promissory notes outstanding Average daily outstanding borrowings
$23,058
$ 8,153
$ 8,882 Highest level of borrowings
$38,800
$27,000
$28,950 Annual interest rate at end 10.69%
9.06%
of periods
- Effective average annual interest rate
- 10.82%
9.48%
8.51%
- Includes administrative fees.
7.
SECVRED CREDIT AGREEMENT On August 15, 1989, the Company entered into a secured credit agreement with t troup of banks including the Bank of New York ("BNY") which is also m.ng as the agent bank, under which, the Company may borrow amounts up to
$50,000,000 to finance corporate expenditures.
Borrowings are secured by the Company's nuclear - fuel inventory as defined and certain rights under the Power Contracts and Capital Funds Agreements.
Under the credit agreement, the Company has four rate options for financing its interim requirements:
(1) a rate based on the higher of BNY's prime rate or a rate based on overnight federal funds transactions plus 1/4%; (2) an adjusted LIBOR rate plus 3/8%; (3) an adjusted certificate of deposit rate plus 1/2%; and (4) a rate established by bid.
A quarterly commitment fee of.35% per annum is required on the unused portion of the facility.
The credit agreement' has a three-year term, which may be extended for an additional _ year on each anniversary by agreement of the Company and the banks.
Certain other information relating to this loan arrangement is as follows:
August 31 Through December 31. 1989 (Dollars in Thousands)
Promissory notes outstanding at end of period
$40,000 Average daily outstanding borrowings
$38,626 Highest level of borrowing
$50,000 Annual interest rate at end of period 9.17%
Effective average annual interest rate 9.44%
?
k 33 t
i e
Maine Yankee Atomic Powar Company form 10-K - 1989
!hing Yankee Atomic Egyg.t Comoany NOTES TO FINANCIAL STATEMENTS l
l l
r l
8.
EURODOLLAR ~ REVOLVING CREDIT AGREEMENTS l
l 1
(a)
In 1985 the Company entered into a Eurodollar Revolving Credit f
Agreement with a group of major international banks, including the Union Bank of Switzerland which was also acting as agent, under which the Company could borrow up to $20,000,000 to finance general corporate l
requirements.
Each loan was due one year after the date of the loan i
I (unless an earlier agreement termination date applied), and bore interest based on the LIBOR rate plus 3/4%. A quarterly commitment fee l
of 3/8% per annum was required on the unused portion of the line. The loans were secured by a second lien on the Company's nuclear fuel inventory (excluding nuclear fuel inserted in the reactor) and on certain rights under its Power Contracts and Capital Funds Agreements l
requiring payments or financing of fuel-related costs.
The Agreement i
was terminated on January 30,1990, and replaced as noted in (b) below.
l Certain other information relating to this terminated loan arrangement is as follows:
Year Ended December 31.
12R2 1RBA lERE (Dollars in Thousands)
Promissory notes outstanding
$15,000
$10,000 Average daily outstanding borrowings
$11,178
$11,874
$18,433 l
Highest level of borrowings
$20,000
$20,000
$20,000 l
Annual interest rate at end of periods 9.76%
8.62%
l Effective average annual interest rate 10.53%
8.66%
7.87%
l (b) On January 30, 1990, the Company entered into a revised Eurodollar Revolving Credit Agreement with a group of major international banks including Union Bank of Switzerland, which is also acting as agent bank, under which the Company may borrow up to $35,000,000. The terms of the facility are similar to the 1985 facility except for the amount of the banks' commitment, a reduction in the interest rate on loans to a LIBOR rate plus 5/8%, a reduction in the commitment fee to.35% on the unused line, and certain minor differences in.the Company's representations and warranties.
- 9. REDEEMABLE PREFERRED STOCK The Company must redeem and cancel 6,000 shares annually of the 7.48%-
Series Preferred Stock at par value. At the election of the Company, up to an additional 6,000 shares may be redeemed and cancelled at par i
on each redemption date.
The optional provision is not cumulative.
The annual sinking fund requirement through December 31, 1994, is 34
Maine Yankee Atomic P;wer Company l
Form 10-K - 1989 Maing Yankee Atomic Eqqr Company l
1 NOTES TO FINANCIAL STATEMENTS l
- 9. REDEEMABLE PREFERRED STOCK (continued) l
$600,000.
The Company may also redeem, in whole or in part, any i
additional shares of the 7.48% Series Preferred Stock upon not less than thirty or more than fifty days' notice at $103.37 per share on or before December 31, 1992, and at amounts decreasing annually thereafter to $100.00 per share, in each case plus accrued dividends.
Preferred Stock repurchased for the sinking fund in advance and not l
cancelled amounted to 3,250 shares at December 31, 1989, 9,250 shares at December 31, 1988, and 6,200 shares at December 31, 1987.
't
- 10. PENSION PLANS e
The Company has two separate non-contributory defined-benefit pension plans which cover substantially all of its union and non-union employees.
The Company's funding policy is to contribute amounts to the separate plans which are sufficient to meet the funding requirements set forth in the Employee Retirement Income Security Act
("ERISA"), plus such additional amounts as the Company may determine to be appropriate.
Total pension expense related to these plans amounted to $572,000 in 1989, $282,000 in 1988 and $410,000 in 1987.
The principal reason for the decrease in pension expense in 1988 from 1987 was the settlement of two Group Annuity Contract liabilities through the purchase of non-participating insured annuities.
The settlement satisfied pension benefit obligations of $338,000 and was accounted for in accordance with FASB Statement No. 88, " Employers' Accounting for Settlements and Curtailments of Defined Benefits Pension Plans and for Termination Benefits".
This settlement resulted in a
$118,000 gain recognized in 1988.
Plan benefits under the union retirement plan are based on average l
career earnings and length of employee service.
Plan benefits under the non-union retirement plan are based on average final earnings, as defined within the plan, and length of employee service.
A summary of the components of net periodic pension cost for the union j
and non-union defined benefit plans in 1989, 1988 and 1987 and the total contributions charged to pension expense is as follows:
i 35
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Maine Yank:e Atomic Power Company Form 10-K - 1989 BLing Yankee Atomic Epjgt Company NOTES TO FINANCIAL STATEMENTS l
- 10. PENSION PLANS (continued) l i
Union
. Non-Union-(Dollars in Thousands) 1282 1168 1211 1282 128A 1981 Service Cost-Bonefits Earned During the Period 5 133 $ 151 $ 144 $ 448 $ 357'$'361 Interest Cost on Projected Benefit Obligation 94 90 88 396-283 265-Estimated Return on Plan Assets Loss (Gain)
(314)(214) 66 (761) (520) 186 Net Amortization and Deferral 16.Q
_B1 (Ill) 125
-16B (1Q2)
Net Periodic Pension Cost 93 112 107 479 288 303 l
Settlement loss (Gain) 118) 130)
Total Pension Cost
$3$2$g$g,$g$jg, Assumptions used in the accounting for the union and non-union defined benefit plans in 1989, 1988 and 1987 were as follows:
1982 1E88 lEBZ Weighted Average Discount Rate 8.50% 8.75% 8.75%
Rate of Increase in Future Compensation Levels 7.00% 7.00% 7.00%
Expected Long-Term Return on Assets 8.50% 8.50% 8.50%
i l
l i
s b
k 36
e Maine Yankee Atomic Power Company Form 10-K - 1989 Maine Yankee Atomic P_ter comoany NOTES TO FINANCIAL STATEMENTS
)
i
- 10. PENSION PLANS (continued) f The following table sets forth the actuarial present value of pension benefit obligations, the funded status of the plans and the liabilities i
recognized on the Company's balance sheet at December 31, 1989 and-1988:
i Union Non-Union (Dollars in Thousands) 1182 lEBE MBE 12AE l
Actuarial Present Value of Benefit Obligations:
Vested Benefit Obligation
$.... 521 $_._H2
$Lj.12 $. 708 Accumulated Benefit Obligation
$__1Q2 $ 380
$1J11 $1.an l
Projected Benefit Obligation
$1,338 $1,056
$5,192 $3,314 Plan Assets at Estimated Market i
Value (primarily, stocks and bonds) idB3. 1.367 Ll.51 4.108 Funded Status-Projected Benefit Obligation in Excess of (Less Than) Plan Assets (246)
(311) 441 (794)
Unrecognized Prior Service Cost 53 (16)
Unrecognized Net Gain (Loss) 132 134 (449) 253 Unrecognized Net Asset (Net Obligation)
._ 312 441 568 599 Net Pension Liability (Asset)
Recognized in the Balance Sheet
$J $ 264
$ 544 $
58 In addition to providing pension benefits, the Company provides certain health care and life insurance benefits for..substantially all of its retired employees. These and similar benefits for active employees are provided through insurance companies acting either as an insurer or plan administrator, and premiums are based on the benefits' paid during the year. The Company recognizes the cost of providing these benefits through charging expense in the current period.
The cost of health care and life insurance benefits, substantially all of which relates to active employees, aggregated approximately $1,285,000 in 1989,
$768,000 in 1988 and $573,000 in 1987.
In addition, in 1989 the. Company established an employee welfare benefit plan for non-union employees, to provide a systematic means of providing certain life, health and other post-retirement benefits to eligible retired employees and their dependents. The benefits will be provided through a trust fund established.for the exclusive purpose.
J s
37
s s.
i Maine Yankee Atomic Power Company-Form 10-K - 1989 Maine Yankee Atomic EQEtr Comoany NOTES TO FINANCIAL STATEMENTS
- 10. PENSION PLANS (continued) of funding such. benefits.
The trust fund will _ be funded by contri-butions by participants in the plan, if and to the extent such contributions are required under the plan, and contributions by the Company.
Total funding expense - related to this plan amounted to -
$302,000 in 1989.
The benefits provided under the employee welfare benefit plan will be limited to benefits for participants, dependents and beneficiaries which qualify as welfare benefits under Section 3(1) of ERISA or as life, sickness, accident or-other. benefits permitted to be provided.
i through " Voluntary Employees' Beneficiary Association" exempt from taxation to the extent permitted under Sections 501(c)(9) and 512 of the Internal Revenue Code and the regulations thereunder, j
- 11. COMMITMENTS AND CONTINGENCIES Construction:
The Company anticipates construction expenditures to amount to $18.9 million (inclusive of AFC)'_in 1990.
1 Nuclear Fuel:
The Company anticipates nuclear fuel expenditures of-1
$20.7 million (inclusive of AFN) for 1990 and $69.8 million (exclusive of AFN) for the period 1991 through 1994.
Nuclear Fuel Storace: Under the terms of a license amendment approved-by the NRC in 1984, the present storage capacity of the spent fuel pool at the Plant will be reached in 1999 and after 1996 the available 1
capacity of the pool will not accommodate -a full-core removal. - The i
Atomic Safety and Licensing Board has approved the Company's proposal to demonstrate a further modification which would, if implemented, permit storage capacity through the operating life of the Plant. The implementation of such a modification would require.further approval from the NRC. A Maine statute provides that after July 1,1992, spent nuclear fuel may not be stored on site for a period exceeding three years from the date of removal of the fuel from the reactor.
The Company is evaluating its options including the possibility of 1egislative or legal a. tion.
While the Company cannot predict the outcome of legislative action or of a legal challenge, it believes that the NRC has the exclusive authority to regulate on-site storage of spent fuel. Federal legislation enacted in December 1987 directed the DOE to proceed with the studies necessary to develop and operate a permanent high-level waste (spent fuel) disposal site at Yucca Mountain, Nevada.
The legislation also provides for the possible development of a Monitored Retrievable Storage ("MRS") facility and abandons plans to identify and select a second, permanent disposal site.
An MRS facility would provide _ temporary storage for high-level 38
e<
Maine Yankee Atoaic Power Company form 10-K - 1989 j
Maine Yankee Atomic Power comoany NOTES TO FINANCIAL STATEMENTS i
- 11. COMMITMENTS AND CONTINGENCIES (continued) waste prior to eventual permanent disposal.
In late 1989 the DOE; announced that the permanent disposal site is not expected to open before 2010, although originally scheduled to open in 1998. Additional delays due to political and technical problems are possible.
Maine Yankee is assessing plans to provide for storage of its spent nuclear fuel, but cannot predict whether, or to what extent, the Maine statute and storage capacity limitations referred to above may be modified and whether, or to what extent, they will affect the operation of the Plant.
Decommissionino Financina Plan: The State of Maine enacted a statute in 1982 which requires the Company to submit a detailed decommissioning financing plan to the MPUC for approval, and in 1984 the MPUC approved an interim plan.
In March 1989 the Company amended the interim plan with updated information and requested that the plan, as amended, be-approved.
In a proceeding for approval of the amended plan, the MPUC on February 22, 1990, ordered the Company.to fund the trust at a-level i
based on an estimated decommissioning cost of $178,098,000, which is in excess of $167,000,000 which the FERC adopted when it authorized the l
Company to collect that amount through rates in the Company's most recent rate proceeding in September 1988. The Company cannot predict the ultimate result, but believes that the FERC is authorized by law to establish the size of the Maine Yankee-decommissioning fund and Maine Yankee's annual collection level in rate proceedings.
Maine Yankee is seeking a judicial determination by the Maine Supreme Judicial Court of the MPUC's authority to set an amount different from o
that allowed by the FERC.
On March 23, 1990, the' MPUC granted the i
Company's-request for a stay of the MPUC order pending the outcome of the Judicial determination.
Nuclear Insurance:
In August 1988 Congress enacted a fifteen-year extension and revision of the Price-Anderson Act.
The revised act provides for an increase in the limit of liability for a nuclear-related accident from $720 million to approximately $7.445 billion.
The primary layer of insurance for the liability increased from $160 million to $200 million of coverage provided by the commercial insurance market.
The secondary coverage increased from $560 million i
to $7.245 billion, based on 115 licensed reactors.
The change in the secondary layer is accomplished by an increase in the retrospective premium assessment from $5 million to $63 million per nuclear' accident i
per licensed reactor, payable at a rate not exceeding $10 million per year per accident.
In addition, the retrospective premium is subject to inflation-based indexing at five-year intervals and, if the sum of all public liability claims and legal costs arising from any nuclear accident exceeds the maximum amount of financial protection, each licensee can be assessed an additional 5% ($3.15 million) of.the l
maximum retrospective assessment.
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p.
o Maine Yankee Atomic Power Company Form 10-K - 1989 Maine Yankee Atomic b.g.t Comoany NOTES TO FINANCIAL STATEMENTS
- 11. COMMITMENTS AND CONTINGENCIES (continued)
Iri addition to the insurance required by the revised Price-Anderson:
Act, the Company carries all-risk nuclear property damage insurance in the amount of $500 million plus additional excess nuclear property.
insurance in the amount of $1.535 billion effective January 1,1990.
Of this additional excess insurance, $975 million is provided by a nuclear electric utility industry insurance company through a
combination of current premiums and retrospective premium assessments.
If the insurance company experiences losses in excess of its capacity to pay them, each participating utility may be assessed a retrospective premium of up to 7.5 times its annual premium with respect to industry losses in any-policy year, which could range up to approximately $7.4 million for the Company.
The remaining excess nuclear property coverage of $560 million is obtained from the commercial insurance market and is not subject to retrospective premium assessments. These excess coverage amounts are the maximum offered by both the industry mutual company and the commercial market.
Low-level Waste Disoosal:
In 1986 the federal Low-Level Radioactive Waste Policy Amendments Act (the
- Waste Act") was enacted..The Waste Act requires the present disposal sites to accept low-level nuclear wastes from other states until December 31, 1992.
The Waste Act also sets limits on the volume of waste each disposal facility must accept from each state, establishes milestones for the non-sited states to establish sites within their states or regions (pursuant to regional compacts) and authorizes increasing surcharges on waste disposal until 1992.
After 1992 the states in which there are operating disposal sites will be permitted to refuse to accept wastes generated outside their states or compact regions.
Maine has satisfied its current milestone obligations under the Waste Act and is pursuing plans to meet future requirements in a timely manner.
j In addition to the requirements of the Waste Act, a 1985 Maine law l
requires voter approval prior to construction or. operation of any new facility in Maine for the storage or disposal of low-level radioactive R
wastes.
The law also requires voter approval prior to Maine's '
entering into any compact or agreement with any state or the federal government concerning the disposal or storage of low-level radioactive wastes inside or outside of Maine. On November 7,1989, Maine voters approved an agreement between the State of Maine and the Rocky Mountain Low-Level Radioactive Waste Board providing interim access to an existing low-level waste disposal site in Novada from 1990 through 1992.
The Company currently has the capacity to store approximately five years' production of low-level waste at its existing facility at 4
the Plant site and intends to continue to ship its wastes to present off-site facilities for as long as possible in order to preserve that capacity.
The Company cannot predict, however, the extent to which Maine will continue to satisfy its milestone obligations under the Waste Act or whether voter approvals required by the 1985 Maine law will be obtained in the future.
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Maine Yankee Atomic Power Company Form 10-K - 1989 l-MA.iD.g Yankee Atomic h ugr Comoany NOTES TO FINANCIAL STATEMENTS
- 11. COMMITMENTS AND CONTINGENCIES (continued)
In 1987 the Maine Legislature established the Maine Low-Level.
Radioactive Waste Authority, which was created to provide for a low-level radioactive waste facility for Maine.
Pursuant to the statute, the Authority is assessing Maine Yankee, as the only nuclear plant in Maine, for the initial statutory assessment of $10,000,000 over a four-year period ending on March 1,1992, to be used for the planning, siting, licensing and construction of such a facility.
Through March 15, 1990, the Company has been assessed $6,000,000. The statute also provides that, as reliable cost estimates become available, additional. costs associated with such a. facility will be assessed to any nuclear plant in the state following legislative enactment.
Pursuant to the statute, Maine Yankee will also. be responsible for its share of the cost of operating such-a facility.
- 12. UNAUDITED QUARTERLY FINANCIAL DATA Unaudited quarterly financial data pertaining - to the results of operations are shown below.
Ouarter Ended March 31 June 30 Seotember 30 December 31 (Dollars in Thousands, Except Per Share Amounts)
Electric Operating Revenues
$39,927
$38,042
$39,118
$41,325 Operating Income 6,362 5,925 5,415 6,100 Net income 2,221 2,280 2,272 2,248 Earnings Per Share of Common Stock 4.16 4.28 4.27 4.21 19&B Electric Operating Revenues
$35,102
$33,878
$35,351'
$52,766 Operating Income 4,842 4,625 4,487 4,948 Net income 2,450 2,509 2,377 2,257 Earnings Per Share of Common Stock 4.59 4.70 4.48 4.23
- 13. TRANSACTIONS WITH ASSOCIATED COMPANIES During 1989,1988 and 1987, the Company paid $9,414,553, $8,788,289 and $7,692,007, respectively, to Yankee Atomic Electric Company, -an associate of several of the Sponsors, for services =at cost for its 41.
l Maine Yankee Atomic Power Company Form 10-K - 1989 l
1 tiLiILt lELktg Atomic Egygt Comoany NOTES TO FINANCIAL STATEMENTS i
I
- 13. TRANSACTIONS WITH ASSOCIATED COMPANIES (continued) engineering and nuclear services department.-
Central Maine Power -
Company h.is furnished the Company certain engineering, administrative and legal services, and furnished certain facilities - at cost, and-electric service at its filed rates. -During 1989,1988 and 1987, l
Central Maine Power Company was reimbursed in the araount of $3,623,222,
$4,064,111 and $6,231,498, respectively, for such services.
It.is expected that Yankee Atomic Electric Company and Central Maine Power Company will continue to perform similar services for the Company in
+
l the future, for which they will be reimbursed by the Company.
l ITEM 9 - CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable.
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Maine Yankee Atomic Power Company Form 10-K - 1989 PART III ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REWTM!il A.
Directors The directors of the Company and their principal occupations and all positions and offices with the Company are as follows:
Name, Age and Year First Elected Director Princioal Occupation Charles E. Monty, 63, 1971, Chairman of the Board of Directors of Chairman of the Board of the Company Directors (Principal Execu-tive Officer) and Director Joe C. Collier, Jr., 55, 1989, President and Chief Executive Officer, Director Central Maine Power Company John C. Duffett, 62, 1988, Chairman, President and Chief Executive Director Officer,' Public Service Company.
of New Hampshire David T. Flanagan, 42, 1988, Senior Vice President, Finance and-Director Law, Central Maine Power Company Bernard M. Fox. 47, 1986, President and Chief Operating and Director Financial Officer, Northeast Utilities Frederic E. Greenman, 53, Senior Vice President, General 1984, Director Counsel and Secretary, New England Electric System Thomas A. Greenquist, 61, Chairman and Chief Executive Officer, 1973, Director Bangor Hydro-Electric Company G. Melvin Hovey, 60, 1984, Chairman and Chief Executive Offi--
Director cer, Maine Public Service Company-Matthew Hunter, 55,.1983, Executive Vice President and Chief-Director Operating Officer, Central Maine Power Company Carroll R. Lee, 40, 1979, Vice President - Planning and Develop-Director ment, Bangor Hydro-Electric Company 43
Maine Yankee Atomic Power Company Form 10-K - 1989 ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued)
A.
Directors (continued)
Name, Age and Year First Elected Director Princioal Occupation c
-John F. Opeka, 49, 1986, Executive Vice President.,
Director Engineering and Operations, Northeast Utilities Service Company Donald G. Pardus, 49, 1989, President and Chief Executive Officer, 2
Director Eastern Utilities Associates
.l Gerald C. Poulin, 48, 1989, Vice President, Engineering, Director Central Maine Power Company Jeffrey D. Tranen, 43, 1984, Vice President, New England Power Director Company Thomas C. Webb, 55, 1986, President and Chief Executive Officer, j
Director Central Vermont Public Service Corporation' Russell D. Wright, 43, 1989, Financial Vice President and Director Treasurer, Commonwealth Energy System Each of the directors, except for Mr. Collier, has been for the past five years, and each of the directors is now, an officer or employee of the Company, one of the Sponsors or an associated company thereof. ' Mr. Collier has been President and Chief Executive Officer of. Central Maine Power Company since July 1,1989, and prior thereto was Senior Vice President, Corporate Planning ~and Regulation, for Florida Power & Light Company, after having served as Vice President, Marketing and Energy Management of that company since 1983.
i Each of the Sponsors is represented on the Company's Board'of Directors, but there -is no formal arrangement with respect to such representation.
The directors are elected at the annual meeting of stockholders and hold office until their successors are elected and qualified.. They are not
' compensated by Maine Yankee for serving as directors.
On January 28, 1988, Public Service Company of New Hampshire, of which Mr.
=
Duffett is Chairman, President and Chief Executive Officer, filed a petition for reorganization under = Chapter 11 of the United States Bankruptcy Code.
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'O Maine Yankee Atomic Power Company Form 10-K - 1989 ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued)
B.
Executive Officers The following are the executive officers of the Company with all positions and offices held:
HAmt A91 Office and Year First Elected Charles E. Monty 63 Chairman of the Board of Directors -
1988 Charles D. Frizzle, Jr.
47 President, effective January 1, 1989 Vice President and Manager of Operations - 1983 to January 1, 1989 Vice President, Operations -
April 1,1988 to January 1,1989 Patrick S. Lydon 47 Vice President, Finance and Admin-istration - 1985 Andrew C. Kadak 44 Vice President, Nuclear Services -
1987 John H. Garrity 41 Vice President, Licensing and Engineering, effective January 1, 1989 i
E. Thomas Boulette 47 Vice President, Operations, effective January 1, 1989-James D. Firth 36 Vice President, Public and Governmental Affairs, effective January 1, 1989 Lee E. Maillet 40 Treasurer - 1985' Mary Ann Lynch 34 General Counsel, effective February 23, 1990 William M. Finn 53 Secretary and Clerk - 1984 Anne M. Pare 36 Assistant Secretary - 1988 Each of the executive officers except Mr. Firth, Ms. Lynch and Ms. Pare has been for the past five years and is now an officer or employee of the Company or one of the Sponsors or an associated company thereof.
Mr. Firth has been employed by Maine Yankee since January 1988. Prior to that time he served as Director of Special Projects for Central Maine Power Company (from 1985), end from 1982.to 1985 he was a partner 45
!~
Naine Yankee Atomic Power Company Form 10-K - 1989 ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued)
B.
Executive Officers (continued) in the energy consulting firm of Weil and Firth.
Ms. Lynch was-associated with the law firm of.Verrill & Dana, Portland, Maine, from 1984 until her employment with the Company. Ms. Pare has been employed as a lawyer by Central Maine Power Company since July 1987.
Prior to that time she was associated with the law firm of Pierce, Atwood, Scribner, Allen, Smith & Lancaster, Portland, Maine, since 1984.
The executive officers are elected annually by the Board of Directors and hold office until their successors are elected and qualified. All are employees of the Company except Mr. Kadak, who is employed by Yankee Atomic Electric Company, and Mr. Finn and Ms. Pare, who are employed by Central Maine Power Company.
There are no family relationships between any directors or executive officers nor any formal arrangements or understandings pursuant to which any were selected as officers or directors.
C.
Other Directorships The following directors of the registrant hold other directorships as follows:
Director Other Directorshios Held I
Joe C. Collier, Jr.
Central Maine Power Company New England Council Maine Chamber of Commerce and Industry John C. Duffett Public Service Company of New Hampshire Yankee Atomic Electric Company Vermont Yankee Nuclear Power Corporation Connecticut Yankee Atomic Power Company New Hampshire Business Development Corporation Manchester Associates, Inc.
David T. Flanagan Central Securities Corporation Cumberland Securities Corporation University of Maine System 46
Maine Yankee Atomic Power Co:pany Form 10-K - 1989 ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued)
C.
Other Directorshios (continued) l Director Other Directorshios Held
[
Bernard M. Fox Connecticut ~ Yankee Atomic Power Company i
Vermont Yankee Nuclear Power Corporation l
Yankee Atomic Electric Company The Institute of Living Connecticut National Bank i
The Connecticut Light and Power Company l
Group America (subsidiary of CM Alliance Companies)
Mount Holyoke College Holyoke Power & Electric Company Holyoke Water Power Company Charter Oak Energy,-Inc.
Northeast Utilities Northeast Utilities Service Company i
l Northeast Nuclear Energy Company-Western Massachusetts Electric Company The Quinnehtuk Company The Rocky River Realty Company Research Park, Inc.
I Frederic E. Greenman New England Electric Transmission Corporation New England Hydro-Transmission Corporation-l New England Hydro-Transmission Electric Company, Inc.
New England Hydro Finance Company, Inc.
New England Energy Incorporated New England Power Company-l New England Power Service Company l
Vermont Yankee Nuclear Power Corporation Yankee Atomic Electric Company Connecticut Yankee Atomic Power Company Narragansett Energy. Resources Company Thomas A. Greenquist Bangor Hydro-Electric Company East Branch Improvement Company G. Melvin Hovey Maine & New Brunswick Electrical Power Company, Limited 3
Maine Public Service Company Maine Electric Power Company, Inc.
Maine Chamber of Commerce & Industry UMPI Research & Productivity Center -
l (University of Maine - P.I.).
Leaders Encouraging Aroostook Development, Inc.
The Aroostook Medical Center Presque Isle Industrial Council 47
l Maine Yankee'Ato ic Power Company Form 10-K - 1989 ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued)
C.
Other Directorsht&L(continued)
Director Other Directorshios Held Matthew Hunter Central Securities Corporation Cumberland Securities Corporation Maine Electric Power Company, Inc.
Pine Tree Society for Handicapped Children and Adults The Union Water-Power Company Kennebec Hydro Resources, Inc.-
Kennebec Water Power Company Central Maine Power Company Carroll R. Lee Maine Electric Power Company, Inc.
East Branch Improvement Company Penobscot Hydro Co., Inc.
Charles E. Monty Central Maine Power Company John F. Opeka Connecticut Yankee Atomic Power Company Vermont Yankee Nuclear Power Corporation Yankee Atomic Electric Company Northeast Utilities Service Company The Connecticut Light and Power Company Western Massachusetts Electric Company The Quinnehtuk Company Holyoke Water Power Company Holyoke Power & Electric Company The Rocky River Realty Company Research Park, Inc.
Northeart Nuclear Energy Company Nuclear Utility Management and Resources Council Opportunities Industrialization Center-of New London County Charter Oak Energy, Inc.
Thames New Science Center of London County 48
Maine Yankee Atomic Power Company Form 10-K - 1989 ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued)
C.
Other Directorshios (continued)
Director Other Directorshins Held Donald G. Pardus Eastern Utilities Associates (Trustee)
Montaup Electric Company Eastern Edison Company Blackstone Valley Electric Company EUA Service Corport. tion EUA Power Corpora +, ion EUA Cogenex Corporation EUA Ocean State Corporation EUA Energy Investment Corporation Eastern Unicord Corporation Yankee Atomic Electric Company Connecticut Yankee Atomic Power Company Vermont Yankee Nuclear Power Corporation Electric Council of New England Gerald C. Poulin Kennebec Water Power Company The Union Water-Power Company Androscoggin Reservoir Company Maine Electric Power Company, Inc.
St. Augustine Federal Credit Union Calumet Education Foundation Jeffrey D. Tranen Connecticut Yankee Atomic-Power Company Vermont Yankee Nuclear Power Corporation Yankee Atomic Electric Company Thomas C. Webb Central Vermont Public Service Corporation Connecticut Valley Electric Company, Inc.
C. V. Realty, Inc.
Vermont Yankee Nuclear Power Corporation Vermont Electric Power Company,' Inc.
Vermont Electric Transmission Company, Inc.
Yankee Atomic Electric Company Connecticut Yankee Atomic Power Company United Vermont Bancorporation Comprehensive Health Resources, Inc.
C. V. Energy Services, Inc.
C. V. Energy Group, Inc.
C. V. Energy Resources, Inc.
C. V. Champlain Investments, Inc.
49-
Maine Yankee Atcaic Power Company Form 10-K - 1989 ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued)-
C.
Other Directorshios'(continued)
Director Other Directorshios Held Russell D. Wright Cambridge Electric Light Company Canal Electric Company Commonwealth' Electric Company COM/ Energy Services Company Commonwealth Gas Company COM/ Energy Steam Company Hopkinton LNG Corp.
COM/ Energy Acushnet Realty (Trustee)
COM/ Energy Cambridge Realty (Trustee)
COM/ Energy Freetown Realty (Trustee)
COM/ Energy Research Park Realty (Trustee)
Darvel Realty Trust (Trustee)
Connecticut Yankee Atomic Power Company Yankee Atomic Electric Company Vermont Yankee Nuclear Power Corporation-50 i
1
Maine Yankee Atomic Power Company Form 10-K - 1989 ITEM 11 - EXECUTIVE COMPENSATION Prior to April 1,1988, except for participation by some officers in incentive compensation and benefit plans, the Company's officers and-directors were compensated by the Sponsors or other associated companies by which they were principally employed.
Commencing April 1,
- 1988, however, certain Company officers became employees'of, and started being compensated by, the Company, and were no longer employees of Central Maine Power. Company.
In addition, certain other employees compensated by Maine Yankee have been promoted to officer positions.
In complying with regulatory requirements, the Company has also reimbursed Central Maine -
Power Company for services rendered by its employees including Maine Yankee officers and directors.
See Item 13, CERTAIN RELATIONSHIPS AND RELATED-TRANSACTIONS.
A.
Cash Comnensation The following table shows the total cash and cash-equivalent compensation (including payments pursuant to Company plans) paid-by the Company for services rendered during 1989 to the five most highly compensated executive officers whose compensation exceeded $60,000, and to all executive officers as a group:
Name of Individual Cash Compensation or Number of (Excluding Previously Persons in Group Previously Deferred and Capacities in Deferred Compensation Total Which Served Compensation)
Paid in 1989 Compensation Charles D. Frizzle, Jr.
$140,348
$140,348 President John H. Garrity
$110.095
$110,095 Vice President, Licensing and Engineering z
E. Thomas Boulette
$107,657
$107,657 Vice President, Operations Patrick S. Lydon
$ 97,503 5
$ 97,503 Vice President, Finance and Administration James D. Firth 5 77,743
$ 77,743 Vice President, Public and Governmental Affairs (7) Executive Officers as a Group
$675,673
$675,673
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Maine Yankee Atomic P;wer Company Form 10-K - 1989 ITEM 11 - EXECUTIVE COMPENSATION (continued)
B.
Comoensation Pursuant to Plans (1) The Company has established an Officer and Manager Incentive Plan which relates incentive payments made to officers and managers of Maine Yankee to the proportion by which each year's performance goals for Maine Yankee are exceeded.
In 1989, pursuant to_this plan, the five officers listed above, Messrs._ Frizzle, Garrity, Boulette, Lydon and Firth received $17,548, $15,642, $13,695,
$13,783 and $5,825, respectively, and all executive officers as a group, $76,887.
(2) The Company has also established an-Employee Savings and Investment Plan.
This plan is open to all non-union employees (another plan is available to union employees) of the Company with one year of service and permits each participant to contribute between 2 percent and 15 percent of his or her annual compensation to the plan. The Company makes a matching contribution equal to 50 percent of any contributions by a participant which do not exceed 6 percent of his or her annual compensation. The amounts accrued pursuant to the plans which were-contributed by the Company during 1989 for the individuals and the group identified in the compensation table above who are participating in the plan are as follows: C. D. Frizzle $3,675; J.- H. Garrity $2,849; E. T.
Boulette $2,813; P. S. Lydon $2,503; and J.- D. Firth $0; and.all executive officers as a group, $13,748.
C.
Pension Plan The Comaany makes payments to retire.. e nians on behalf of virtually all full-time employees of the Com p r, including all eligible -
l officers.
Such payments are based on the salaries and wages of the l
participants.
Retirement benefits are equal to the higher of two values calculated on the basis of two different formulas taking into account a plan participant's length of service with the Comprny and his or her annual compensation.
One benefit formula is based. on the average annual eligible earnings of the participant to January 1,1980.
The other i
benefit formula is based on the average annual eligible earnings of the participant during the five consecutive years within his last ten years l
of employment with the Company in which such earnings were-highest.
i L
The following table lists the estimated retirement benefits (assuming 52
]
Maine Yank:e AtoJic Power Company Form 10-K - 1989 ITEM 11 - EXECUTIVE COMPENSATION (continued)
C.
Pension Plan (continued) i election of a straight life annuity) upon normal retirement at age' 65 under the plan (which benefits reflect the offset for Social Security benefits payable upon attainment of age 65 in accordance with the plan) i covering the Company's officers and under the formula which now appears likely to provide the highest benefit to the persons named in the compensation table below (Messrs. Frizzle, Garrity, Boulette, Lydon and.
Firth have been credited with 18, 19, 7, 18, and 4 years of service, i
respectively, under the plan):
Final Average Years of Service Comnensation 10 20 30 40 l
$80,000.......
12,095 24,220 36,330
.39,574
$120,000.......
18,895 37,820 56,730 61,974
$160,000.......
25,695 51,420 77,130 84,374
$200,000.......
32,495 65,020 97,530 106,774 In 1987 the Board of Directors approved a-Supplementary Employee Retirement Program for key employees, which will supplement the-Company's or other applicable pension plan.
Mr. Monty is Lthe only participant among the individuals and group identified in the compensation table above. The annual cash benefit to be paid to Mr.
t Monty, which is payable for fifteen years after retirement, is $15,409.
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Maine YankGe Atomic Pewer Company Form 10-K - 1989 ITEM 12 - SECURITY OWNERSHIP OF'CERTAIN BENEFICIAL OWNERS AND MANAGEMENT The following table shows the ownership of the' Company's 500,000 shares of
$100 par value Common Stock, all of which is issued and outstanding and all of which is held of record and beneficially. None is held by management.
Amount Percentage H,gg Owned
'of Class Central Maine Power Company 190,000 shares 38%
Edison Drive Augusta, Maine 04336 New England Power Company 100,000 20 25 Research Drive Westborough, Massachusetts 01582 The Connecticut Light and Power Company 60,000 12' P.O. Box 270 Hartford, Connecticut 06141 Bangor Hydro-Electric Company 35,000 7
33 State Street Banger, Maine 04401 Maine Public Service Company 25,000_
5 209 State Street Presque Isle, Maine 04769 q
Public Service Company of New Hampshire 25,000 5
1000 Elm Street Manchester, New Hampdirc 03105 Cambridge Electric Light Company 20,000 4
One Main Street Cambridge, Massachusetts 02142-9150 Montaup Electric Company 20,000 4
P.O. Box 2333 Boston, Massachusetts 02107 Western Massachusetts Electric Company 15,000 3
P.O. Box 270 Hartford, Connecticut 06141 Central Vermont Public Service Corporation 10,000 2
77' Grove Street i
Rutland, Vermont 05701 500.000 shares lgp,%
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Maine Yankee Atomic Power Company Form 10-K - 1989 ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS During the construction period, no return was peid to Sponsors on the money-i paid by them for Common Stock, but a return (at the rrte of 7% per. annum.
e through November 30, 1970, and at the rate of 10% pee annum thereafter) was charged to plant as an allowance for equity funds used during construction.
The amounts so charged were recorded as paid-in capital.
This aractice terminated as of December 31, 1972, the last day af the last monti of the construction period. These amounts are to be prod to the Sponsors on the i
redemption of Common Stock. The Company's First Mortgage Indenture and the provisions.of its Articles of Incorporation relating to its capital stock contain various limitations on redemption.
I During 1989 and-1988, the Company paid $9,414,553.and $8,788,289, respectively, to Yankee Atomic Electric Company, an_ associate of several of. the Sponsors, for services at cost for its engineering and nuclear services department. Central Maine Power Company has furnished the Company.
certain engineering, administrative and legal services, and furnished certain facilities at cost, and electric service at its filed rates.
During 1989 and 1988, Central Maine Power Company was reimbursed in the amount of $3,623,222 and $4,064,111, respectively, for such services.
It is expected that Yankee Atomic Electric Company and Central Maine Power Company will continue to perform similar. services for the Company in the future, for which they will be reimbursed by the Company.
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Maine Yankee Atoaic Power Company Form 10-K - 1989 PART IV ITEM 14 - EXHIBITS. FINANCIAL STATEMENT SCHEDULES. AND REPORTS ON FORM 8-K (a) 1.
The following financial statements are filed as a part of this report:
INDEX OF FINANCIAL INFORMATION EA92 Report of Independent Public Accountants 19 Financial Statements:
Statement of Income for each of the three years ended December 31, 1989 20 Balance Sheet at December 31, 1989 and 1988 21 Statement of Capitalizat..n at December 31, 1989 and 1988 23 Statement of Changes in Common Stock Investment for each of the three years ended December 31, 1989 24 Statement of Cash Flows for each of the three years ended December 31, 1989 25 Notes to Financial Statements 26 (a) 2.
The following financial statement schedules of the Company are filed herewith and included in response to Item 14(d):
INDEX OF FINANCIAL STATEMENT SCHEDULES EA91 Schedule V - Electric Property and Nuclear Fuel F-1 Schedule VI - Accumulated Provision for Depreciation of Electric Plant and Amortization of Nuclear Fuel F-4 Schedule VIII - Reserves Exclusive of Reserves for Depreciation F-5 Schedule IX - Short-Term Borrowings F-6 All other schedules are omitted as the required information is not applicable or the information is presented in the Financial Statements or related notes.
(b) Reports on Form 8-K.
The Company filed no reports on Form 8-K during the last quarter of 1989 and thereafter to date.
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o Maine Yankee Atomic Power Company Form 10-K - 1989 ITEM 14 - EXHIBITS. FINANCIAL STATEMENT SCHEDULES. AND REPORTS ON FORM 8-K (continued)
(c) The exhibits which are filed with this Form 10-K or are incorporated herein by reference are set forth in the Exhibit Index, which immediately precedes the exhibits to this report.
(d) The financial statement schedules required to be filed under this-paragraph are listed under paragraph (a) 2. of this Item.
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e Maine Yank:e Atomic P:wer Company Form 10-K - 1989 SIGNATURES Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
MAINE YANKEE ATOMIC POWER COMPANY By Patrick S. Lydon s/s Patrick S. Lydon, Vice President, Finance and Administration March 27, 1990 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By Charles E. Monty s/s By Thomas A. Greenauist s/s Charles E. Monty, Chairman of Thomas A. Greenquist, Director the Board (Principal Executive March 27, 1990 Officer) and Director March 27, 1990 By-G. Melvin Hovev s/s G. Melvin Hovey, Director By Patrick S. Lydon s/s March 27, 1990 Patrick S. Lydon, Vice President, Finance and Administration By Matthew Hunter s/s (Principal Financial Officer)
Matthew Hunter, Director March 27, 1990 March 27, 1990 By Lee E. Maillet s/s By Carroll R. Lee s/s Lee E. Maillet, Treasurer Carroll R. Lee, Director (Principal Accounting Officer)
March 27, 1990 March 27, 1990 By Joe C. Collier. Jr.
s/s By John F. Oceka s/s Joe C. Collier, Jr., Director John F. Opeka, Director March 27, 1990 March 27, 1990 By John C. Duffett s/s By Donald G. Pardus s/s John C. Duffett, Director Donald G. Pardus, Director March 27, 1990 March 27, 1990 By David T. flanaaan s/s By Gerald C. Poulin s/s David T. Flanagan, Director Gerald C. Poulin, Director March 27, 1990 March 27, 1990 By Bernard M. Fox s/s By Jeffrev D. Tranen s/s Bernard M. Fox, Director Jeffrey D. Tranen, Director March 27, 1990 March 27, 1990 By Frederic E. Greenman s/s By Thomas C. Webb s/s Frederic E. Greenman, Director Thomas C. Webb, Director March 27, 1990 March 27, 1990 By Russell D. Wriaht s/s Russell D. Wright, Director-March 27, 1990 58
o Maine Yankee Atomic > Power Company.
Form 10-K - 1989 Schedule V (1989) titing Yankee Atomic Egggt Comoany ELECTRIC PROPERTY AND NUCLEAR FUEL For The Year Ended December 31, 1989 (Dollars in Thousands)
Balance at Retire-Balance Beginning Additions ments Transfers &
at End of Periqd at Cost or Sales Other Charoes of Period Electric Procerty Organization 7
7 Miscellaneous Intangible Plant 510 99 609 Land and Land Rights 478 (3).
475 Structures and Improvements 40,004 (27)'
1,833 41,810 Reactor Plant Equipment 172,223 (6,541) 1,647 167,329 Turbogenerator Units 99,193 394 99,587-Accessory Electric Equipment 18,566 82 18,648 Miscellaneous Power Plant Equip.
11,923 (118) 1,986 13,791 Substation Equip.
4,786 4,786 Miscellaneous Electric Property 74 74 Unfinished Construction 559 13.765 (SE) 8.286 Total Electric Property
_$348.323
$13.765 $( W )
$355.402 Nuclear Fuel 4
Nuclear Fuel in Reactor
$125,225
$(3,052)
$122,173 Nuclear Fuel in Process 8,916 17,293 (22)
-26,187 Nuclear Fuel -
Spent 242,249 4,163 246,412 Nuclear Fuel -
Stock 13.425
(@)
9.167 Total Nuclear Fuel
$389.815
$17.293 $
.$( g )
$_403.939 F-1
V Q
Maine Yankee; Atomic Power C6mpany Form 10-K - 1989 Schedule V-(1989) tiging Yankee Atomic EMAC Comoany ELECTRIC PROPERTY AND NUCLEAR! FUEL For The Year Ended December 31, 1988 (Dollars in' Thousands)-
Balance at Retire-Balance Beginning Additions ments.
Transfers &
at-End-of Period at Cost or Sales Other Charaes of Period Electric Pronerty Organization-7 7
Miscellaneous
-Intangible P1 ant 510 510' Land and Land Rights 478' 478 Structures and Improvements 66,671 (6)
(26,661)
~
~
Reactor Plant 40,004-Equipment 142,194
' (975)'
31,004' 172,223 Turbogenerator Units 83,325 (7,519):'
23,387 99,193-Accessory Electric Equipment 17,394
=1,172-
.18,566 Miscellaneous Power Plant Equip.
10,929 994 11,923 Substation Equip.-
4,786
.4,786 Miscellaneous Electric Property 74 Unfinished 74 Construction 861' 2L31), '
(30.185) 559 Total Electric Property
$327.229
$29.883 $( W ).
(289)-
$348.323-Nuclear Fuel Nuclear Fuel in Reactor
$136,432
,$(11,207)
$125,225 Nuclear Fuel in Process 15,457 24,562 (31,103) 8,916 Nuclear Fuel -
Spent 204,414 37,835 242,249:
Nuclear Fuel -
Stock 8.950 4.475 13.425 Total Nuclear Fuel
$365.253
$24.FG2 $
-$389.815 F-2
7..
v.
. Maine _ Yankee Atomic Power Company-Form 10-K - 1989 Schedule-V (1989)
Maine Yankee Atomic Power comoany ELECTRIC PROPERTY AND NUCLEAR FUEL For The Year Ended December 31, 1987 l
(Dollars in Thousands)
Balance at
-Retire-Balance Beginning Additions ments Transfers &
at End-of Period at Cost or Sales Other Charaes of Period Electric Property Organization 7-7 Miscellaneous Intangible P1 ant - -
510 510; Land and Land Rights 478 478 Structures and Improvements 65,965 706 66,671-Reactor Plant
-Equipment 134,581 (232) 7,845 142,194 1
Turbogenerator Units 82,437 340 548 83,325 Accessor.y Electric 1
Equipment 17,452 (49)'
(9) 17,394 Miscellaneous i
Power Plant Equip.
9,877 1,052 10,929
'j Substation Equip.
4,786~
4,786 Miscellaneous
}
Electric Property 74
-74 Unfinished Construction
__L221 7.628 (10.142) 861 Total Electric 4
Property
$319.542
$ 7.628
$J
$327.229
)
i Nuclear Fuel j
Nuclear Fuel in 1
Reactor
$131,720 18
$ 4,694
$136,432 d
Nuclear Fuel in j
Process 15,006 15,197 (14,746) 15,457
. l Nuclear Fuel -
Nuclear Fuel -
- 38,382 204,414:
1 Spent 166,032 (28.330) 8.950-Stock 37.280 1
Total Nuclear Fuel
$350.038-
$11.215
$365.253 i
s F-3 1
l
,, ~
.j% Q. 6
-6
-ar -
Ja DE Maine Yankee AtomicL Power Company Form 10-K - 1989-l' l
. Schedule VI-;
Maine Yankee Atomic Power ComDany-ACCUMULATED. PROVISION FOR DEPRECIATION OF ELECTRIC-PLANT AND AMORTIZATION OF NUCLEAR FUEL 4
For:The Years Ended December 31,.
(Dollars in Thousands)
Balance
, Balance-Beginning Charged Other
- at End of-Period to Income
- Retirements.
Chanaes.,
.'of: Period 19M Electric Property
$121.850
$13.073
-$(j g )l
$(152)'
_ $128.085'
. Nuclear Fuel
$306.156
$33.060
$2-
$339.216-19M Electric Property
$120.444
$10.427-
$(g2)-
' $ (11J.).'
-$121;850.
. Nuclear Fuel L$276.928
$25L,.228
$306.156' 191 Electric Property
$110.895
$ 9.465 59
$1
$ 1'20. 44 2.
Nuclear Fuel
$255.035
$21.893
$ 4
[$276.92o
- Excludes amounts collected through depreciation rates for Decommissioning and Permanent Disposal' Cost. See Note-1 of Notes to-Financial Statements for the Company's depreciation and fuel amortization policies..
i F-4 l
i
c,
~
Maine Yankee Atomic Power Company-Form 10-K - 1989 Schedule VIII-Maine Yankee Atomic Egnt Company:
RESERVES EXCLUSIVE OF RESERVES FOR DEPRECIATION For the Years. Ended December 31, (Dollars in Thousands)
- Balance at' Charged Charged Deductions Balance Beginning to.
.to Other From at Close.
of Period Income-
-Accounts. Reserves' of Period 12M Decommissioning Reserve $ M
$M
'$M
'$39.700 A
12E Li i
Decommissioning Reserve $2LBla
'$M
$M
-$28.460:-
1991
$20.828' l
Decommissioning Reserve $M
.. $4. 464
$E 1
..{
Ij 4
r
'f 1
f a
]
F-5 1
+
n
").,,,..
- U L
j] -1 ;
i
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l Maine Yankee Atomic Power Company l
Form 10-K - 1989 Schedule IX SHORT-TERM BORROWING 3 (Dollars in Thousands) j Column F' Column A Column B Column C Column D.
Column E Weighted-Category of Balance at Weighted Average Maximum Amount Average Amount Daily' Average.
Short-Term End of Interest Rate-
- Outstanding Outstanding Interest Rate Borrowinos Year at End of Period Durina the Yea.r Durina the Year: - Durina the Year
?
Year Ended December 31, 1989
- Banks (1)
.$9,000'
-9.46%
$18,925
$10,383 9.92%-
Year Ended December 31, 1988
- Banks (1)
$5,500 11.00%-
$13,500
$ 4,467.
8167%
[
8 Year Ended-
,,, [
$13,000-
- $ 5,133L 7.48%
gg December 31, 1987 Banks (1)
'Be
[y[
-xs I'$
4, 2'.
oe (1) See Note 4 of Notes'to Financial Statements.
. *s 9
4-x e
,gn.e.
m_an.,--
p
.a c.,,,,..
..,at e
9 p_'-
mm-m.-
W
,W+,,-
y P
m..p',("-*;-w-e
+
4
"*gy' g+=Wy, dw(-g'-
>Wp-
- -wfy v eg y".y sw4-W m.
_.y_._
gyg2%_j_m w
gg
..w soc,
Maine Yankee Atomic Power Company Form 10-K - 1989-
-EXHIBIT INDEX The following designated exhibits, as indicated.below, are either. filed herewith or have heretofore been filed with the Securities - and - Exchange Commission under the Securities Act of 1933, the Securities Exchange Act of 1934 or the Public Utility Holding Company Act of 1935 and are incorporated >
herein by reference to such filings. Reference is made to Item 8'of this Form 10-K for a listing of certain financial information-and statements incorporated by reference herein.
I
. Filed Prior SEC Herewith Exhibit Number And Descriotion Of Document Exhibit No.
Docket at Paae_
g
- j i (3) Articles of -Incorooration and Bylaws Incorporated herein-by reference:
3-1 Articles of Incorporation 3.1; 3.3 2-38547 qq 3-2 Amendment to Exhibit.3-1 setting forth terms of i
Cumulative Preferred Stock.
3.2 2-46226 3-3 Bylaws, as amended 3.5 1-6554
.i
'(Form 10-K' for 1988) i (4) Instruments definina the riahts of security holders
. {
Incorporated herein by reference:.
l 4-1 First Mortgage Indenture from the Company to Old Colony Trust
]
Company, Trustee, dated as of November 1, 1970 3.2 1-6554' 4-2 First Supplemental Indenture from the Company to The First g
q~
National Bank of Boston, Trustee, dated as of March 1, 1971 4
70-4976-4-3. Second Supplemental Indenture from the Company to The First i
National Bank of Boston, Trustee, dated as of December 1,1972 4.3 2-46226 u
i i
E-1 l
.4 s, i.-~.*
Maine-Yankee Atomic Power-Company-Form 10-K - 1989 Filed-Prior SEC
_ Herewith 1 Exhibit Number And Descriotion Of Document Exhibit No.
Docket-at Paae (4) Instruments definina the riahts of security holders (continued) 4-4 Third Supplemental Indenture 4.4 from the Company to the First.
National Bank of Boston,- Trustee,_
dated as of February 15, 1984
~1-6554
.4-5 Fourth-Supplemental : Indenture 4.5-1-6554
.from the Company to the-First
.(Form 10-K
. National Bank of Boston, Trustee, for 1988),
~
dated as of April 1, 1986 4-6 Secured Credit Agreement among the.-
4.1 1-6554
- Company and a group of banks,-
(Form 10-Q i
with The' Bank of_New York as for quarter-1 Agent Bank, datt.d as of ended Sept. 30,-
August 15, 1989.
1989) 1 4-6(a) Security Agreement dated 4.2 1-6554 3
' as of August 15, 1989, (Form 10-Q-i relating to Exhibit 4-6 for quarter' ended Sept. 30,-
1989) 4-7 Eurodollar Revolving Credit Agreement among the Company i
and a group of international banks, with Union Brnk of 1-6554 Switzerland as Agent Bank, dated as of January 15,-1990.
(Form 10-K-
.q for1989) i 4-7(a) Security Agreement dated 1-6554 as of January 30, 1990, (Form 10-K relating to Exhibit 4-7 Lfor 1989)
(10) Material Contracts-1 Incorporated herein by reference:
10-1 Composite copy of_ Power Con-tract between the Company and Sponsors dated as of May'20, (Included in pro-1968 spectus-in 2-46226)
E i
,6
+...-
Maine-Yankee Atomic Power Company-Form 10-K - 1989 j
Filed
. Prior SEC-Herewith-Exh-ibit Number And Descriotion Of Document Exhibit No.
Docket-at Paoe-(10) Material' Contracts (continued) 10-2. Composite copy of Capital Funds Agreement between the-Company and Sponsors, dated (Included in pro-as of May 20, 1968 spectus'in 2-46226) 10-3 Stockholders Agreement dated as of May 20, 1968 among the (Included in pro-
-i L
-Sponsors-spectus in-2-46226) j 10-4
_ Loan Agreement between.the.
t Company and MYA Fuel Company,
.B-1 70-5805 dated as of August 26, 1976 B -70-6765 4
-as amended B-1 70-7117 10-5 Eurodollar Revolving Credit 1
Agreement between the Company j
and a group of international banks, with Union Bank of Switzerland as. Agent Bank, dated-as of September 30, 1985 B-1 70-7165-4 d
10-1.1 Amendment No. I to Exhibit 10-~1, 1-6554 dated as of March 1,1984 10-1.1 10-1.2 Amendment No. 2 to Exhibit 10-1,-
dated as of January 1, 1984 10-1.'2 1-6554 10-1.3 Amendment No. 3 to Exhibit 10-1, i
dated as of October 1~,
1984-10-1.3:
1-6554 L
10-1.4 Additional Power Contract be-tween the Company _and Sponsors,
)
j dated as of February 1,1984 10-1.4 1-6554-l 10-2.1 Amendment No. I to Exhibit 10-2, 3
dated as of August 1, 1985 10-2,1~
1-6554 10-6 Indenture of Trust dated as of March 14, 1988 between the Com-pany and Maine National Bank re-10-6 1-6554 lating to decommissioning trust
.(Form 10-K fund for-1987) t 1
E-3
- 4
.a
- . o.:
S., '
Maine Yankee Ato2ic Power; Company Form 10-K - 1989'
. Filed Prior SEC
' Herewith-Exhibit Number And-Descriotion Of Document Exhibit No.
Docket at-Paae (10) Material Contracts (continued) 10-7 Indenture of Trust dated as'of Oc-tober 16, 1985 between the Company 10.1-6554:
and Norstar Bank of Maine relating (Form 10-K-to the spent fuel disposal funds -
for1985)
(11) Statements're comoutation of Der share earninas '
J Not applicable (12) Statements re computation of ratios j
Not applicable (13) Annual report to security holders j
Not ' applicable l
(16) Chanaes in certifyina accountant-
.]
Not applicable.
(18) letter re chance in accountina orinciples Not applicable (19) Previously unfiled documents Not applicable i
(22) Subsidiaries of the reaistrant-None (23) Published reoort reaardina matters-submitted to vote of security holders
]
Not applicable
~
(24) Consents of experts and counsel Not applicable (25) Power of attornev J
Not applicable (28) Mditional exhibits None a'l
-f; E-4 i