ML20052C202
| ML20052C202 | |
| Person / Time | |
|---|---|
| Site: | Quad Cities  |
| Issue date: | 04/27/1982 |
| From: | Hartman E IOWA-ILLINOIS GAS & ELECTRIC |
| To: | Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8205040492 | |
| Download: ML20052C202 (4) | |
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e IOWA-ILLINOIS GAS AND ELECTRIC COMPANY DAVEfrORT. IOWA EDWARO J MARTMApt April 27, 198 kn van
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Antitrust and Indemnity Group
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I Nuclear Reactor Regulation 1
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Docket Nos. 50-254 and 50-265 c>,
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Gentlemen:
D We are submitting the following information to comply j
with the provisions of 10 CFR Chapter I, Part 140, Section 140.21, and the letter from Jerome Saltzman, Chief, Antitrust and Indemnity Group, dated June 15, 1977: (1) annual report of this Company for the calendar year 1981 which shows its income statement and balance sheet, duly certified by the Company's public accountants, and which includes a summary l
statement for the last quarter of the year; (2) a s.tatement l
of internal cash flow projected for 1982 and actual for 1981 and (3) a narrative statement to which the cash flow projection is annexed, explaining the projection, dealing with capital expenditures which might be curtailed should that become necessary, and establishing the availability of adequate funds to meet the Company's obligation for the payment within three months of April 1, 1982 of the Company's maximum liability for retrospective premiums.
Iowa-Illinois Gas and Electric Company has a one-quarter share in the ownership of Quad-Cities Units 1 and 2; the three-quarters share is owned by Commonwealth Edison Company who has submitted a separate statement under separate cover.
Very truly yours, EJH:pc Encls l
cc:
John Oster Insurance Administrator j
Commonwealth Edison Company
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8205040492 820427 PDR ADOCK 05000254 I
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. IOWA-ILLINOIS GAS AND ELECTRIC COMPANY MEMORANDUM ACCOMPANYING PROJECTED COMPANY CASH FLOW '
STATEMENT FOR YEAR ENDING DECEMBER 31, 1982 t
The attached statement.shows that internal cash flow proj ected for the year 1982 for Iowa-Illinais Gas and Electric Company is expected to. total $56.0 million, and on an average quarterly basis to total $14.0 million.
The maximum total contingent liability for premium assessments against the Company as a licensee of nuclear power reactors is $5 million (25 percent tenant-in-common interest in the two units at Quad-Cities Station).
Commonwealth Edison Company, the other tenant-in-common, is filing a separate statement.- Funds for the payment of the $5 million possible maximum premium assessments could be diverted from the construction program and made available from internal cash generation or from other sources.
The Company's high credit ratings assure ready access to the capital markets -- both long-term and short-term.
The Company has an Aa-2 credit rating from Moody's Investors Service, Inc. and an AA credit rating from. Standard and Poor's Corporation applicable to its mortgage debt.
It also has the highest credit ratings possible --
PRIME-1 from Moody 's and A-l+ from Standard and Poor's -- applicable to its commercial paper.
In addition, the Company has back-up lines of credit totaling $57 million at prime rates with commercial banks, and presently has outstanding no borrowings under these lines.
As o f March 31, 1982 the Company had $38.2 million of commercial paper out-standing.
These high credit ratings and credit arrangements provide the means to raise additional capital at relatively favorable rates.
The attached cash flow statement projected for 1982 reflects the net effect of a requirement of $36.4 million for cash dividends on
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capital stock.
Cash dividends on the Company's stock cannot be considered obligatory and because they are subject to declaration from time to time by the Company's Board of Directors they could, if necessary, provide the means for making additional cash available for other.uses.
Without curtailing dividends or resorting to additional short-term financings, the Company could, if necessary, delay substantial portions of its construction program, thereby reducing its cash requirements for that-program during the period of delay and making cash available to meet assessments, although such action would increase the costs of plant construction.
Although the Company is participating in a jointly-owned electric generati<
and transmission construction project, the provision of $5.0 million for retrospective premiums should not significantly affect completion of this project.
Deferrals of expenditures on electric and distribution projects could also be made.
The undersigned certifies that-the foregoing memorandum with respect to Iowa-Illinois Gas and Electric Company's projected cash flow for the year ending December 31, 1982, and the appended cash flow statement are true and correct to the best of his knowledge and belief.
A D. H. Shaw Vice President - Finance April 26, 1982
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. IOWA-ILLINGAS GAS AND ELECTRIC COMPANY Internal Cash Flow 1981 Actual and 1982 Projected 1981 1982 Actual.
Projected
($000)
($000)
. Net Income After Taxes S 47,200
$ 55,000 Less Dividends Paid
- 33,572 36,44:5
$ 13,628
$ 18,555 Adjustments Depreciation.and Amortization
$ 39,333
$ 46,400 Deferred Income Taxes and Investment Tax Credits 15,887 17,100 Allowance for Funds Used During Construction (21,101)
(26,100)
Total Adjustments S 34,119
$ 37,400 Internal Cash Flow
$ 47,747
$ 55,955 Average Quarterly Cash Flow
$-11,937 S 13,989 Percentage Ownership Quad-Cities Nuclear Power Station 25.00%
i MAXIMUM TOTAL CONTINGENT LIABILITY
$5,000,000
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