ML20071E421
| ML20071E421 | |
| Person / Time | |
|---|---|
| Site: | Pilgrim |
| Issue date: | 02/15/1983 |
| From: | Galligan T BOSTON EDISON CO. |
| To: | |
| References | |
| NUDOCS 8303100214 | |
| Download: ML20071E421 (37) | |
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BOSTON EDISON COMPANY 1 To our shareholders - Th+ year 1982 m ukcd a perat of tramat n;n w:th 6" ah!rJ.:n nt of a ru n strats:*/h r tre ung tho hiture ra-is of t ;stens-rs mgl nhan holders h.w.c. a ynn m whK h n> c itut12 rcm wee umiutah ' utrneurnbered tr/ the . . c ht of h.ture heavy financial colum;tnu nts for con: tr uction ? wa ; a year in wtuch your cur.patri U:ntmund to ja sue an agq!M SiVe lx dim / i:t cost nN!HCt hitl arKj iniprovtwf [MhCTIVlty At the e rid of A)<it. the hlas :achira Tts ik parttru ra r;t ittmc Utihti ,4 : m d a r* de rn,n pm cainv; for partial tervsi t'/ of the uwentrn. nt ni tim h!qrun 2 1 rov et wcel!"d in Se1.tenh r 1%1 2 9 tra! cash g"naation um a le
<;uate to ini vt me;t of the comp, .y's hnant an; o q. m+ nt: Amt sJale the n dm 'ai c f a!n.vance for funds uu <l dunng eor u r uctian d. prensed n eram;x tic ovoraJ qt hty tt thav nnrunm unprc ced To ecnt ume nn; ro"ement in t he o'/eraH f nuncial pmition the compor/ hh! in Navr mher for an 8 3 p rcen* m: 'm ""I r< tan resenun Tha'.
mcre.r v wouht amount to $71 rnilhon ,dumal!v A d"cuaoa n, du : b/ Jano 1 Prenali at arul Chief Operat my Utf mer hanc:; hl Stasesky n- t m <l from t he com; in.y January 31 1953 af ter a ilt .t ac;uintel nun r < if nuuly e vi ars Mr. car < r 31unnni a per nxi et rar: i urowth :' nra wh:ch he <tnected thq , et npany s emimeet agt and ant,n uction progr am hir S'cio oky nuolo a Li ura c r. nhuncn to the cany .ar/ m h,di na; ta provi.i. :s sound bmw for f uture l rq;ti - . Et!. rtive with f lr Sta:wsky s rentement. I was +c'ed to the a$ht!wid pounut ut prealdent 21 hen J Sweene; waail.rtnl execntree vice president and duectc' Mr Swn ru:y tad l> o the sentor vice ; re' cient smco H:bru,ny , IMO resi.orable for Corporate Information Services. Eneroy Sur ;t/ and S eui Pn y LEpite the na'a >rul n:ce: sion th" Homtoilecunonr/ n manni uinm!!y a o :n H+a # :t outru' t ned the rest of t!r ruta.n m vnttuhy an areas I) ci :te a national d'chn' nt +ct tic.ty & < f ? 2 pe tcent t he cunpany exper t e rmi,l an men me t it 17H pern nt l'rimanly un th.' at!' wit n ct o e ned i x; u:vmn m tir < "/ :ce 'rix try high tech '
- n ,mp our an i det' .se cont ractor s All mdicat u . l omt to LUM w, another stu na yeca tor the an u s e ono , ccm '
. pan 41 to t he re. ? (,1 ihe nat ton A rn cet event wr unpl.1m ntauon of IMPAUT N a l un ami a pr ro , tot n slucma d< rend + nce en !. mein oil an i nunnuumg the nm! ter capit.I exp ndMun it u o punsrc : te a eMninna > d econsnuc ana pohtical ch r n. I' t ' il chttutt' in wh!ch crinatunt ar , d;tt r?ly an:l'ldm p;!i (p wt t rmt nt olt wl,i ,m > d. indrhi;ng a qn s f t ! % 1V W t le i.'
A 11 P Hn It is a J rOfirarn (b %;gtit %!10 ach3 4 * ' a n ;rN'rt:J r Un hi iW I
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L nq teun rnarki t tabihty As ; ait of IMPACT:'mo we are 1 meen hnfwith ; n hnunar v i tr;mi enna ana . ' . < nmi r cal ho sm 1 t he , ,u' i l
- r!mt convt 'rnlun In nx tl 0! llVe Uil u!un and t hVerMtv t hi tut I n nx Th+ n Hv. n , can lx hnanc. si um b 1 Ma ,a chur.et ts mnovanve eil curevivan-n li qi4in-n 'l m t m d n n't uct a.n ,b cist n ;D 9 qu.m b!. nuhE cu:'onu r (111 ;.tvinyS , unJ 4ovt'd rilb thth!y i tt hitule hie'i su}'l d.1 t i a ' n ,t n ml' n ti ' ' i tt ( L , nH e ' ' n (F;Li*cr% to M;[ j o!! ' T r '
n rn erv. thi abthty ro meet ami impou d i nynunnen'ai ha : ,ma o su Wn- and a n . v d t h. avm hihiht / of oiID 1 hb l (livt n dlicat ion ol I WII.; Clinvt Ic&n to Co.d o;! s lu.i! Mp i t'.il:ctbih'v b ri n.a - on;'UT H ' ' in tCIl> ' J j t hs ' n aperate ami of le > than N percent oil m tl e im. I trx by PW
!Mi'A(:T 3 k in ab a > incla hys ari aritbitiotiz,;cht u no cat i,e rmx . ' cott 4 rv ' u ni cr i i; i l m.in i a : . nt ; n. gnm. and a } reen ; to mvolve var tous group. mcluihnq custmers q vi n. ment ett;culs a rct > '
- and et h 1 m'en +'ed parta m dmcussi in of !he o; t tons m.nes and alu inattvi s et rempa , a si by IMPACT A W In May IW1 the shatchehler 4 vo'nt to reorqam. e the co npany uro a hdim : c nFur/ sn uctu:e una a n. &c created . nut y cane.1 bosti m la lust r a m As ren a n 4i o ' en u:, 'ceat Lt rn um 'a*/ n u : uby ct to the ap; !cval o!
the DPU ( L H t : uat y 9 1RG t he DrU muni an erJ4 -t dem, m i t t.e compn - 1 + ' 1t:rsuch g ym 'a! We am convmeed that the pioposal a prn ents an ar; roath that would !w h. ne f u:u! ta ce ' t r aai:han LJ3 m The cunp my is ex unnung the i ouNhty of ret king iecon::de:ana i >t gpdtme res e ' We move mto 19d3 with a wnse et conta fence We ate conhd" ' m the at ihtv et the hhsen team t , vork v q h many extenul authences in charting an en"tgv nup; ri cot 1se for the futum centuh nt n the necclv &cted lesa ( lluSt ttS adlunHs!!atIon to Welk coUj)ef ative!Y nl I!s' n'mnh'n ill!i ti + t (! cu:, ton;.3 and slun dyid, [s ai ;,t ni c, ;f; dent m t he fundamental econonne ritengt h of the m tn pein R mn ama and m h tx m tus eut p: n f uc* t1ectricity will hrmg to a pnductive hDcV:V f I,n f i/ f I
/
I pp A Thomas J Galhgan Jr Chanman and President L 0s10 l'ebr uar y Ib.1983 > i N6
*$06 W
h 1 1 1 REVIEW OF 1982 -:L -
- 4 -
2 Operating Revenues S L' : : x::a Ojorating IU!Vell11Wi haVe grOWH i.it in Collip F1rld 124 rate of 12 4 percent since 197/ r,
- m o o_ rn g.
l Earnings Per Share - At'er :;"veral ve:n:s of steady inco a..+ % earrur;:n . t.lu:s year luve ieen affectal by the 1981 ciuneHa . tian of Pilgnrn Unit 2 ;* ' 8 f
- I 1
I ._ . _ _ _ . _ _ Return on Equity
.h tur n un Erputy ha., decroiu.xl to lh W pe reent Common Dividend Cov arage
_ _i___ll _ _ _ _ The increa.;e in n>minon divulend.; voted t ru:> .. s u i it' !1!!cd ! Tolu luither linl TOvernOnt M1IhU deadi ( strong coverar;n of that divt tend 4 i i l l " l Capitalization _ _ _ ___ , i carn.,: nuante m mun mu,. n;e ccmrinv i.im c ; nmnu,mi domn,n a n aencuei .ymnv hv : n o 32 33 x 3s y ; inq new sh.nes only t brough t he Divide 1.1 Peinve: ' p. ..g, . then! Plln a:: 1 'O ! , 2 Il1i{ 'il'
+ ,
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' REVIEW OF 1982 - -
-_ i ,- - 3 Construction Expenditures e Eh Cons.t r uctton exper alstures continue to be linutu! to M t%e neco:,..;ary to improve pruluctivity. provate reliable service arul nieet regulatory requaernents IM ,, m 1^6 pq m gg KO to e >
0 - 71 78 ?? e - Percent Internal Generation Cl The comp.uiv is g' er:eratmg more anti more ot :t constiurtton expenchtines internully. re<!ucing the m ne n! to enter cos'l'/ f mancial m.nhets '- ' u i! L a ,. . - u Territory Sales by Class Con.:nercial siles merea:c ag.un p unar ily a:, a f Il R I . resu!' >t the continuinq consttuction txxun in r:c:7 - ;' .;, ( 4.- (;:
' ~l ' f- l nos.- n . 4 j i i
l l : I ;i i !' i' > 2s 2- 2: 27- 2-2 i:.u :q l:3l M yo as su na na na na Nuclear and Fossil Generation inexpen:, a run ie.u powerect generation centnb ute: sigruticant :uvings to customers
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[. I-] i t lj1l1lll Territory Sales Growth ____ _ Te
- cry sa!cs growth is attectni by t he nee <ts et nia - ne'W rellunercla! pro PCts as We'!! as li\ul rnarl '
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' . 5 New truttatives v ere mtroducryl for reducmg depentience on imported oil, rmmmizmq the need foi costly new gener-ating plants and for helpm3 customers control use Cal!nlIMPACT 2000 the mitiattves of for a plan for the future and a process for getting there Prelunmary engmeering arid hcensmg activities berpn under IMPACT 2000 to darmme feas:hihty ;f convertmq l hvo oil f uni uruts from oil to coal An increa.c in the conimon stock dividenr1 was ved by the duretors m Decernter Th. two cent per quarter increase r.uses the annual dividend to $2 88 por cunmon share in May, a retml rate mcrease of approximately $32 rmlhon wa.; granted tri the DPU pimanly for part tal recovery of th.
omis of the Pilynm 2 plant cancellat in late 1981 In Novemter, a ret.nl rate increase request totahng apptcxunately $74 nulhon was hini wi* h the DPU to cover luc;her operatmq costs and inilation. and to actueve a higher return on u;mtv Quahty of earnings improvn.1 although carrungs per share dechned S 97 fmm $415 in 1981 to $31R The major fac*nr was the $14G per share n: duction of AFUDC due pnmanly to the cancellod Pdynm 2 pror ut Boston Edison mamt.uncticao of the best cash flow positions m the indu.;try. most u ihe company s f mancmg nqunements were met through internally g'nerated cash Territory sales increasal 178 pero nt while sales m the rest of New England won t;at and sdes nanonally dechnod 2 2 percent Ground was Liroken L.t an adnuntst a ive, service btuidmg at the Pilmna nucie-u IJ mt a ne / nuclear tranung faciht'/ wo pmcha:,ed w ! a new Boston Service Ci nwr was conatructed Oil consumption was redueni to 116 nulhon barrel 4 annnak,' d >wn imm 12 4 m:ih m m 1901 and 15 3 nuihun m 1%0 and the lowe t level m a decade Power plant etficiency was t he ie at n. the compan't s im 'ori The ethciencri prc aam wha n beton m 197h u uvmq ctutomers $11 nnihon a year in tuel co:,tn Fttective upon President Pancu M Stasze:.ky s retirement on iinuari 31 198 5 the ban:t of duectors el"cied Chan man et t he lhud and Cluet Executive t >tticer Thom u J Galhspn io tne a L h* nna: ; um on < : pn'sidem For.ner Sernor Vice Pn tadent Stel hen J Swn n"y w,s e lectni exn unve rice pnt ni n and Juerwr Th., tonitiany : rnarki't share ut new and renc reatixl (x : nun < n::g aly;ut 58 pern nt o ne'W n'Sldent! !! ha tt uhl alb i M dMg The Nuclear Depattment undeiwent a roeniammt on put of "duch mda int tb q pant m. - of Ira , vice im dont in charge at Iniclea! < vperat lonS m i a m0V' of Ihe n.wh N u Ohl WUah 'n to !. 'W oWce 5p Ce in h!aintree Financial Highlights
~
mes ewtat Ivmnter 31 im 1P , cn c; i 01vrating Reven .es (00th $1OM S $1 C41941 11" lMmee for Common Stock (000) $^ h~ j SW 462 (2151) Common Shares Outct.uulmg i Weightal Average (0@ 14Mi l ' 14 074 26' l Cenunon Stock Data
$3 In l $1lb (23 4M Earnmos Per Sh.ue
, Divi, lend., thiunt Ibr Shate $2 M S^ 50 07 Payout Hano s .
6/? 3136 IWk Value Ibr Share $3171 l $3168 01" ) i' Heturn on Average Common Eqmty 10 02' i 13 3b - (24 9 ' > j Fixn! Charges Covemge (SEC) 2'5XI 2 25X 135
*14 tat ed te New J of Nxes ta Fmen u' nc.m i
p- .y - l hhL g+ w / a .g. .. g ' , 7 4 ,a p'N ' ~,*= g- as s e in 1982. Boston Edison set m motion a new As long as Boston Edison and other north-Ptg plan and a process to ruluce dependence on east utihties rely on expensive, insecure sup-
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foreign oil, rnmimize the nee <1 for capital expenditures on new facihtles and help cus-phes of foreign oil. there is a concern for the area's energy security and rehability of sup-
,p' tomers control energy use Callai IMPACT ply The 1973 oil embargo and the af termath (
7 2000(butiatives for Managing Prrxiuction of the 1978-79 Iraruan revolution demon-S and Consumpt ton Trends to the year 2WE strated the vulnerabihty of both utihties and U N tno plan incorporates a process for the core thur customers to dramatic price fluctua- 9 N paay to work with regulators. investors, cus- tions and the economic repercussions wluch
,,d k tomers legislators and other intuested necessanly result Wlule relative fuel pnce lurties to gam greater control of the energy stabihty was reahzed dunny 1982. there is no tutmo The process is designed to lxilance assurance that pnces m the future will not '
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%[ t he interests of these groups in developmg spiral upwards. Just as they did in the past and implementmg programs to meet the Several scenanos for managmg future sup-mea's need for electneity and the company's ply and demand were developed txised on "ia ti need for a sounci fina'acal position. Boston Edison's commitment to reduce oil In recent years. largely because of the dependency and to help customers obtzun esuilating cost of oil. utthty compa:ues Lave greater control over their energy use From Iren involval m many contested proceed- these studies. thre" intenelated elements of ings with customers. le(pslators and regula- IMPACT 2000 were identified: fuel diversity, fors in 1981. following the cancellation of the conservation and load management Pilgrun 2 project. the company moval for- The company has studied extensively the r ward to develop altomative energy progranu potential of alternative fuels that could pro- 5 D to meet future customer and corporate vide a diversified mix for the production of J
%cc Otc nents IMPACT 2900 is the result It is electncity. At tins tune, coal appears to have r., ;-
designed to create an environment more the greatest potential as an oil substitute. It e conducive to addressing the concer ns and is secure abundant. domestically-produced Q 3 g meetmg the nnds of the vanous mterests and k>ss expensive than oil Estimates indi-b involvni cate that converting five of Boston Edison's dd -1 p 4, in serving as the basis for a thoughtful dia- plants from oil to coal couki save customers N
. . , logue. the IMPACT 2000 pror;uun has these as much as 53 bilhon in fuel cmts by the year major object ives to docicase the company's 2000 1MO -
oil consumptton from the 1982 level of 67 oct- Pichnunary engineenng and hcensing are t ,9 ~ cent to 20 percent or less by 199J and te nun- und"rway to determine if the five generating ,. p, 3UB;6} 4 inum t he noxi for new capacity and the uruts can be converted to a dual coal /cil 4( ( associarni large capital requirements (apabihty The uutial cost estimate for coal -e ~
; conversion of all1tve units is $900 milhon. W4 . . " ,
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wluch the company w1H seek to recover from fuel savings, through Massachusetts' oil con-
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l 7 tion of a senior vice president The coal con- energy fairs and community meetings. Bos-version process has been organized into two ton Edison is offenng consumeru information phases Phase I involves preliminary engi- about energy ef ficiency and the opportmut'/ neering and hcensing. the securing of addi- to meet and talk with energy efficiency spe-nonM bnd and the development and ciahsts. Fourteen new or expanded customer y approval of a financing plan Tlus phase is conservation programs have been developed. ) schaluled to be completed in 198-1 Prov.dal several of which were operational by the end y Phase I ts successfu!!y concluded. Phase fi of 1982. p o would include rnajor engineenng, matenal Boston Edison is a summer peaking com-y procurement and construction starting in pany due to the heavy saturation of air con-sg f. I
$[6 1985 The first unit would be converted in 1986 and the last by June 1988.
ditioning in the metropohtan area Ten pilot research and develcpment load management ac, 2 A i Coal is only part of the company's fuel programs have been planned to reduce the
- 9,h diversity program. Nuclear energy and company's peak demand All customer di. Jj hydroelectnc power from Canada are other classes - residential. commercial. industrial 1
options The company has already con- and government - can participate in these y# . tracted with the New Brunswick Electnc pilot pograms to determine wluch load man-Power Conunission for 100 megawatts of agement practices should be adopted. The nuclear power Other poss11xhties for diverse programs will involve direct control of air fying fuel sources will depend on the cut- conditioning and water beaung. stored s come of the coal conversion i toject and the heating and coohng. solar water heating and I'
\( orononne feasibihty of alternative sources now under study including additiona: power co-generation.
fMPACT 2000 is more than an energy plan. pmchases. refuse. fuel cells, coal gasification It is an effort to build a consensus. through l and wind' solar power cooperative ef for ts involving all interested in addition to providing a fuel diversity parties. on the appropnate actions to be ut rategy. IMPACT 2000 expanded the com- taken to watio! both energ'/ demand and pany s conseimoon and load management supply It is designed to identify issues. If programs Th i mvolvea moving forward exploie cMI'ons. consider tradeoffs and arnve Watli an ilcllve lied!-tUrIn Conser vallon pro- al decisions in a timely manner While mini-
,C gUiln alld il lonG tt'im '. VKI Inarlagernent plo- mizillg adversarial encounters l ,,P grain. !Of h cf Which will help consuiners gait a g!Pa'oi a itC rol OVer their energy Coli-3 Suluption alki nlitillnlZe peak demalld growth Through the use of creative market.ng.
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L % f' % N&Q ) Employee productivity and the reduction of ern history,23 percent better than 1981 Ttus operating costs continued to be objectives improvernent is attributed to increased on-in 1982 The company's fossil fuel units the-job awareness of safety and better atten-l _. re;xar ted generating of ficiency levels that tion to the safe performance of job-related l exceeded those of 1931 when Bostr n Edison tasks. placed fif th in the nation in heat rate perfor- The other program involved employees mance (a rneasurement used throughout the meeting in small groups called quahty cir-electric utthty industry to indicate o;)eraung cles It was successfully tested in 1981 with a etficiency) The improved of ficiency level pilot group of employees and then expanded reflects an $11 milhon savmgs annually m m 1982 into other areas of the company. fuel costs for customers smco the heat rate Employees have the opportunity to discuss unprovunent program began in 1976 The work-related problems. Identify causes and I steam system heat rate also unproved in recommend solutions. The program can be 1982 saving customers approxunately directly credited wrn instilhng pnde in
$!X)G00 m fuel charges. work, reducing lost work days and improving Dunng 1982 the Generating Unit Perfor- productivity.
mance Program took offect under junsdiction Organizationally, a number of changes of the Massachusetts Department of Pubhc were instituted in the Nuclear Organization Utiht lui Fuel Charge Bureau. The purpose in February 1982. These changes were of the program. which runs from August 1. prompted by the issuance by the Nuclear 1932. through July 31.1983, is to assure cu.+ Regulatory Commission in January of a civil tomers that Boston Edtson's gent rat mg units penalty and an order modtfying the Pilgnm ,, are operated in an of ficient and rehable Station operating license to requue a major manner reassessment of the company's nuclear oper-Another program to improve operatins; ations These organizational changes were ef ficiency that began in 1981 wit h the open- further motivated by the cancellation of Pil-ing of the Matenals Management Center in gnm 2 and the company's commitment to Watertown continued with the construction the of ficiercy of Pilgnm Station. Its pumary of the new Boston Service Cente. The $17 source of base load generation A new sernor nulhon. 163 000 square foot facihty was built vice president position was created with en the company s t wenty-hve acm site at responsibihty for all nuclear activines Two Massachuset ts Avenue. and wdl replace a vice presidents. a new vice president for 7 deterioratmg 70 year-old multi-buikhng nuclear operations and the vice president for complex The new center will headquarter nuclear ongineenug and quahty assurance. apptGximately 700 emplove o The construc- report to uus seruar vice president A Nuclear tion of the Boston Service Center completes Operations Review Committee of the Board a program wluch began m ihe 19bOs to of Directors, consisting of foul outside board upgrade all company service centers. of fices members. was also formed and support facihtles !n November. ground was b:oken ad;acent Par ucipanon in t wo programs by employ to Pilgnm Station for a new $41 milhon ees resulted m signihcant imptovement m Adnunistrative/Scrvice Buildmg Scheduled product tvity and cost contial One. enucal to for completion by August 1983. the building employee healt h and well being. related to wdl be used to provide efhce space for on the rob satety Dunng the last ten years emp.oyees in the Nucle u Operations Depart-hoSten FWsonh Safety record haS rellUCled ment and also as d Warenouse [U additlon. ( an unptovmg itend in 1982. the company work began on a net c $17h0 000 nuclear M demonst rated its best satety reconi m mod- trauung facihty w:uch will open in early 1983 E M 'WF*..
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, Further organizational changes took phice ing with speech and hearing-impaired l m 1982 to consohdate respons:bihties. customers who have similar equipment. The -
reduce organizational entities and unprove unit enables the customer and the company
. the balance twtween senior vice president to commurucate visual messages to each 1
.[ groups Of major unportance was the other easily and clearly.
streamhnmg of the Commercial Organizauon In December, the newest top-of-the-hne . . to provide imptoved response to customus computerized telepnone system was s and mereased eervice installed. The sophisticated features of the TC7h' Anouier ornamzauonai change was the de clopment hom existing functional areas system enable Boston Edison to respond faster to incoming customer calls. thereby of an energy supply organization. consisting decreasing the amount of time a customer of three groups responsible for makmg all must remain on hold The system expands
. ryg wholescue power pmchases and sales. pur- customer access substantially and provides bl chasing fossil fuel and participating in plan- the capabihty to record the number of
$ ning and associated regulatory proceedings inconung calls received so that future traffic b[/
5 ,r Both organizationally and operationally, customer relanons activities received added may be forecasted and the necessary person-r.el trained and assigned to accommodate g,d_ s attenuon in 1982 Through IMPACT 2000, the demand l the company tenewed its comnutment to be The company conunued the development .; _ responsive to what customers identity as of informat.on systems with the new IBM
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then greatest concerns To actuevo tius, a 3033-S central computer wluch. among other
, ; better underrtanding of both sides is neces- corporate busmess functions. will unprove scuy-an understiniding that can be responses to customer needs. A priority pro-obtinned throuch a number of velucles estab- lect for the computer group is to upgrade the ; hshed to mcrease accessibihty to customers. customer mformanon system. The system in 1982. an external consumer advisory will provide a wide range of up-to-date cus-panel was developed as well as an mter nal tomer data to unprove customer service and 3 customer relanons activity group The panel Irtter sattsf', requests for information from consists ot 15 mentbers represent mg all seg- customers. Other areas of the company and -
ments of the company's service ten pory regulatory agencies Tlus project is under ' ~
! Meeting on a mont hly basis t he group will continual review by a steenng committee Q '
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discuss areas of mutual concer n and will consisting of vice presidents and department g provide valuable customer feedback on managers who provide top management ?
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expectations <ls Well as recomniendations on Will per mit more rapid and Comprehensive
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Com[\ lily Cuhton "r policies and broader response to Clistomers ];;I energy issues A tor ritil in 'ial ctistonier relations group In addition lo tipgrading the customer informanon system. the co:nputer group. as I
$j Was fornh'd W September IG Uerve aS the part oI an overall CCrpoIale infor manon plan. -
Com}Xlny liaison to the Depar tment of PlibhC began W JIk to upgmde or introduce the fol- T
' h i Pf; Unhtles on totters concenung customer lowing rystems:
>M service disputes and to pravide tunelv infor- Matenals Management. Accounts Pay- S
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s . :L , Boston Echson exponencal a 178 percent ing approachcxt 73 percent in 1982 The lugh terntori sab: s growth rate m 1982 ni con- acceptance of elecinc heating and coohng is q trast to lx;t h a nat ional trend. wluch siw; a fostered by the inherent flexibihty in system 2 2 percent dochne in sales. and the New design wluch a!!ows for amovative improve- g 1:nglarvi r"qional trend where ca! :s were flat ments in overall building heating and cool- , r, In recont ynns. the economy of the Greater ing efficiencies. Of the new construction / /, rg Boston area luis consistently out por for n ni takmg place in the residential market. Boston j' 77 j// Edison captured 58 percent. or 3 6 milhon c that of the rest of t he naaon This situanon ' remanial true in 1982. alt hough the area did square feet of residential development. Newly developmg end-use trends in the
- not entuely escape the pralongn! nat tonal reces:aon residenual and commercial markets mdica:e /g'gj/
Boston's unemployment rate o m un"d a steadily mcreasmg demand for elect nc y signihcantly below the national average, ano energy. The increased use of computers m the drop m real per capita mcome vias slower the busmess sector the change to electroruc , than the drop nationally Tlus economic per- of fice eqmpment and the increased electnfi- ., fannance was largel'/ due to t he growmg cauon of indust nal processes are all factors . number of service and high-technology f ums affecting deman't In the residential sector.
- operatmg m Boston Edison's terntory, which increases relate to the growmg use of heat 'e '
i , , - r histoncally are much less susceptibk to the punps and home apphances ef fects of recession than then manufacinng As a result of the mereased demand for counterparts As a result, conunetelal sales mereasal 2.79 percent. of fsetting a dechne elecinc energy, ter ritory sales total!ed 9 9 nulhon megawatthours at the end of 1982. a [ m mdustnal sales of 14 percent 1.78 percent increase over 1981 Of this total. d Them is a conunercul const r ucnon boom sales m the cenunmcial sector were 49 6 per- , occurung m tho Boston area Conunoretal cent. industnal sale s were 16 6 percent and ,',- Slh!s repri'sente MI UO lH frCent of the coln}ht- residential sales were 26 6 percent Sales m ny s retail sales m 1982 In 1982 alone. four other areas totalled 7 2 percent In July, a now hotels openni for busmess, all of wluch new peak was estabhshed at 2.181 mega- b@p - selectal elect ncity for heat mg and coohng watts. 3 9 percent above the 1981 sununer a Four more tue schn tuln i to open. one m 1983 peak a and t hrn in 148 L and t hev too will be elec In the energy supply mea. a tuel diversif t-M C t ncally h( eni Also pLmuni tar operung m cation project was completed in June when ' 1933 is th ' 1 b nulhon square tout oflice retail the company convened Unit 7 ci as oil-f ned ' por t ton of Coplev Place , .u! t he State Trans plant. Mystic Stanon to dual oil an i gas pertation Bulkhng. wit h Buom) squ.ne tn t bunung capabihn Gas has been purchased ' or ottice space Both of these buik hngs are ta on an inten upnble basts at approxnnately 90 , he heaf nI aihl cooh 'd eh'ettically pe! cent of the Cost of oil [n the [aM six l - , In the last two vous. electnetty has beon t he pmte ini source of heat mg and ceohng months of 1982. the use of gas resulted m a reduction of 13 nulhon banels of a:1 bur ned. ,6 i tot more than 18 b nulhon squ ne teet ut new with a S2 7 nulhon reJuction m fuel costs. and muovatni conunercial spaen n ae t han Gas accounted for 6 percent ut ib t go. era- < .s a thad et winch utth.nl high etttoen, y b 'at tion with oil praviding 67 percent and b plunp: ome coup!ed wa h advance .<!oray nuclear 27 percent , i system.i The com;uny s marlu't sinue of Gas was also used to mc 't uptsoxnnmely L
!b 'W . lud it 'Ib ) Vat t 4 ! Columer en t! H \ tet ' t h A lt 84 percent of the' Colnpany 9 sitHm hem Cus- ,
tomer requnem0His reSulting in redution.i ~ Of 845 000 banels of oil bumed and $31 nul-n s,/ WQ, ' _f'
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hon in fuel charges to steam customers IMPACT 2000 was developed and unple-In December. Pilgt:m Station, t he compa- mented in a penod of transition in the f man- , ny's nuclear power plant. cJmpletui ten cial and regulatory areas During tlus penod. years ut operation dunng which it supphed the Massachusetts Department of Pubhc nearly 30 percent of the company s tota! gun- Utihties allowed partial recovery of the com-eration In 1982. Pilgrun Stauon saved th" pany's investment in the cancelled Pilgnm 2 burnmg of 5 4 million barrels of oil for a m nuclear plant. the reduct:on of al!awance for f mgs in fuel dollars to customers of $134 :mi- funds used dunng construction (AFUDC) f hon Total savings since the plant began operation in 1972 are 56 nullion banels of oil associated with the cancelled plant depressed earmngs. a tunng freeze was [NQ7 and more than $817.1 nulhon Oil use in effect and construction expenditures 4N N dropped to 116 nulhon banels and oil pnces were strictly contro!!ed N averagal $28 07 per banel. down 11.3 per For the year. eanungs were S318 com-cent from 1981 As a result. net system power pared to $415 tor 1931. a decline of S 97 per costs dechnai $15 2 nulhon. share. The major factor m the decrease was a The company has entered into a contract dechne of $146 per share resulung from the with the New Brunswick Elect no Power teduction of AFUDC. due pru"anly to the Comnussion for the dehvery of additional cancelled Pilgnm 2 project Thus af ter e nuclear generated power Under the terms o' accounting for the reduction of AFUDC.1932 t he cont ract. Boston Edison will receive 100 earnings showed some progress The s megmvatts of electncity nom Pt Lepteau dectease m AFUDC together with certain nuclear power plant. with dehvenes betun- fuel clause revenue refunds. increesed main rung February 1.1983 Hydux lectnc power tenance expenses and other operaung trom a pmnpal storage facihty in Massacha- expenses. was partially of fset by rate setts has been obtamui to comp!ement the increases. a 17 percent increase in retaul kill Pt 1 epreau purchase watthout sales. lower mterest expense and Several New England utilitie: including 1 lower mumcipal p:operty taxes Renu n on "4 Boston Edison. me negot tat ing for Luger equity dechned from 13 35 percent m 1981 to s'N amounts of hydmelectne power hom Can- 10 02 percent in 1982. again pumanly due to .' ada The complet ton of a new dueet cunent the reduction of AFUDC The a!Iowed return ',
- transnumion mterconnection could result in on equity is 15 5 percent t he conlpally rt 'ct 'Ivirl(l 80 rut KilWalls UI Ihe CC mpdny has iniptoved its already 'N i nergy trom f lyc ho Quebec begintung in t no ,trong cash postuon and conunues to main-late 19Has and potennally 2/0 megawatis m taun one of the int cash flows in the mdus-the l!tUs try Cash flow per shate of $10 80 m 1982 .
Covers tht' CoInmon dtVidend over 3 8 t irnes i I:1 aJdition. 84 p. tcent of construct ton % q expenchtures was generated uremally for
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'\ immicial flexibihty and st rengthening t N appealed the DPU order r balance sheet was the fihng of a shult im In a second fue! clause decision issued m
- i totion statement wit h the Sec'inties and early November. the DPU allowed the com- %
- , Exchange Commission in cormection with pany to recover $43 7 nulhon of $531 milhon the sale of $75 nulhon of hrst mortgage wluch had twen collected since 1980 when bonda Liepending upon market con: htions the company had changed from an histoncal t he Ixnuis me expected to be sold m eady to a forecast method of computing for fuel J L 1983 to retinance exist'nq intermediate tonn clause factors of the amount not allovnd S4 ,
'C milhon is apphcab!e to Septemin and Octo- i br floating rate debt.
lE ST. g- In mm o mmpanps an nm mOce a HM % u Directors incioasul the quar terly divulend to the years in wluch calcu!anons vere dis- i. p $ 72 per share hom $ 70 per share On an annual basis the dividend is mcreased eight puted Results for those two penu is have been restated. tulucing atter titx not income
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t' cents to $2 88 per sh ne This dividend by 21 cents per share and 20 cents per share f+ .. act:on, followmg mereaa 's voted in 1979 and for those years. respectively / 1980. reflects Boston Ishson's continuniq On June 25.1982 the company filed wit h ' I~ strong conutatment to its shmeholders and the Faleral Energy Rogulatory Comnussion y t he yield on then investments as well as t he (FERC) mereased fn m wholesale for resale b
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- iii t he f utun' rates The increase is presently being col-On Novemixa 14 1982. t he company tiled lected at the ute of $b 9 nulhon pu year sub-a $71 nulhon elect ne rate inemuse rqu, st lect to retund pendmg FERC review Tim with Ihe DPU wluch it granted would cons
- company anJ its customers are conducting tute an H 1 percent metease m mtail ra settlement chscussions wluch may resu!: m a ritD 's ove !r iI kN ' In Ilh r it.'st yt H 1/. It1< Sntli reduct;on of IIU? inen itse If Setl!emen! W;ree pena i ende d June 30.1982 hi ad huon to an ments are signed. they will be subnutted to allowanee to: mflat ion. h tthng melu< to , a t he FERC for approval
- toqu :.ted 17 prcent mtum on conunon In at her actions before regulator y agen-t jult v ilicn N ist M i (b '} H 'cl.It ton u L i. < t : < t l t it I cit s. the company initiated environmeiltal i
-- ot IMPACT m)u lu ids tot cons 1" ,auin! re":ews before state and falaal m;encies for
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i i 1 3 i - 18
. MANAGEMENT'S. DISCUSSION ~ AND ANALYSIS I
4 - j Managernent's Discussion and Analysis of the Hest)ts of Operations and Financial Condition Results of Operations
! 1982 n promnts the tin,t full year of operano o mnc< +n+llat mn <;f Ine cv ;ui .a of
- te poposal 1150 MW tllach 51r tlFrH 4,itting fo r;lllty ['lhlIUrl 2 Tho Cr rn;>ciri / re:o m/<"l a renci ni'a incre -i;l r :x'etiting S32 000 000 'n I matonty of which wm intend w f ta recover over 4 tlurtexn year p"n+1 the a ', u. anni!at ihe cann!H! mc' f
, Earnuigs Imr sh.ue of conunon stock v;Ur" $31H m iM2 compared to $415 m 1%1 in i $3 S5 m 1980 % '+ ,ta91 6*"? No'e J iA TJoh a to Firiatical St:ia rn4vits) The m tor factur aiu.cinej ine 50 T!; + r o anmort slitire +3 nua> m 19H2 j t AltnHRJ'i WaJ a rfKjuctlorg gj the A!lyw,g[1ce s for li E! . 'J-p j Durin { Constr udlOn idFUDCJ by $l lb p+ at Cd vp j Dh:HN Iht! D trl'Nhl of p@jr Un 2 ham ConStruCtid b>$ in dup" o Jauhh!a N Vrabie deCrea3e m the aCeruM Of j AFUI)G AI4]DC accr tio<l e >n i'it;nin ." cunstr uct t?r: during 1%1 r< ;m n a nn sl $1 i/l et *.ler e erriirx;,;mr cornmon sh:ne 1
of $4 lb { Irl Novemb"r 19d2 the Company hjed f ur a r&Hl rCle lucrMr rota!HG opprQXmWlV ilI W) KO anrM m. I W Januaty.1W3 t he Company Seoan bilhnq ulret to 1"tund a who!.uib rw mct-r- of ap; mximedy $5 Y J 004 These umrori:s e am inn uidod t< > reipse u . r i,at i t n ; < o:> . I:rvinin .in triti/ ein aihec,ic'e ;is . u!! ci.i;i hu;.% r n t a n on ] tN{u:? v i i
'lotal op+ 4at un or/enues inemam! by $11326 D.O tmm 1981 B & ( . a rm te n, t 6 4 inmumt !cc $2b //H O' O pr HrbiIlly dtl4 to th*? Tate HieruitSe et!UC?ivu In M _i7.19V aWI a l / m# t ' m re t e t' /at' hour la:* S TInb Jas
[NirtLtlly of t;iet Dy el deGruic e in fuel,irFl purethiv * } POW + r lei 90"3 The Company recovere nwt of its fuel ami purchw d pirec.1 et >th m ;;n! # u r i pmr c!u i pu ever a.1 m , -n t PIauh8 ? i Tla n'irsiirun<; fuel couts . ire rocov, w i t hr mh baat t. n i - Fuol ami!w
- s ! ; a rt ' t f a ts' n p r t r e. r a;,
and tuOl ansi phIch.Unfi powel
- Xpentes decI.- ed $1/13] RO and $[] 9l % i , , c? y mun 19H Tht ; u a l
r : versal of t ho 19HO to 1981 ir"nl m w!nch fuel and pmche i powe reven- ms > u i $H '/W 09) ci tu .i an ! purC}LlM 41 pOWe ?! I'XJ W11:a i Irh o m d $101.b91.0t x) The in mi a y : o , ai f or t b s_ su.;ml'C n.,itbv;na m toGSil IU+ l pt ict S Yhe 1eac In 1981 th' m 'h d.P mf k xi a r b m f ut i oil NW A, m ] E N Ognpany2 cm onitFil to ret'l!!d app!UXima! Ply $h I W W of fu"! .HU t puyh im j powd a ] u e y m yhgn r"lf n j t,, ; nyj ery of repbcernent power runt ; mcuned dur my ? n" out i r t !!!. = p6;r m. I nu ! e m/ t a m.nn'en.mee n tm b't; and trU MhticallOrlS Mal!1telb Uh e UXperlSt > h i:i IncN > b+' } pr un H lly a 3 a n sn!t. nt Infl,stion ,g;j ign? , q n p g .g +IU ' C- QanV # ) MM fu"! qo!P rat trMi statlana T.ixe S ott a r flian Income ' tax ' WhM'h aie ? )!rnnat f ' prm.g .qri tah ' b 'crUas - f $ 10 0.b (hV) in IM2 M ,n D t. ult Of tlD' I!n[dt .m. rliat lorl ot a tax linutlhq U ! "'4b him id loud Ur sit D ..j h ' / iU L e ona Tlne. + 'ci m's t; ,ok pl.iW Irl latt' ]Jdl and tllit he.:r Unp.Uts tre : t ill e!Xpe s t 31 $ 4 aba h 3 D at[ci,q.3tg[ m.mcLilS'Tt mont i l t Allowanees for Fun is Used Durind Consu uct un 0Wh on itero mi and o% r funda m" nbu ui ta n t mcom ? by
$91lb a M $2912buO and $2H 427 Ono m IN2 1%1 an.119i0 r1 apC vely & pnm uy rewn im th.": mm
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- In 1992 u tha' riuti >v,il of pilgr irn 2 in nn 'h.: AR I!X.' .mer uri! t t s.
lntere t expeux related to kmq mr m debt Incmami approxunei $1 i O U ab r t h" 1961 anti 1%d loveL t t $bl 000 au due to the n s iince of a 'outalha ensh' triht', and Sor 9 S bond 4 m . civ IN U' h"r mre N + x; vn.s decrea: ed $24 421000 hont 1981 leula prmapa!!y as a msu!t of a da r.us m th- r; rag ou _t.mtag nhm em loan balance trom $lho 888 000 m 19H1 to $F,11b 000 in 1+ ' an a d"en use m ti.+ acerav bunowmg r1. unc!u ! In,; coinnutment f+s) from 19 7W > m 1981 to 14 9% m 1G62 The etfrettve meume tax rates far tho voam lW 1%1 and 19M w"m da 51 M4 and 37 9 L m,;meti'c it (se. Note E of Notes to Financial Steements) For a det.nlat di icussion on the ef tects of inflation and changma pne"s "o un:; :ementarv intonnanon on pars 32 anJ 33 + l 1 , - - l L
A MANAGEMENT'S DISCUSSION AND ANALYSIS . 19 ' Construction Program and Financing - The Company is currently studymg energy suppif h!!er natives to reduce oil coruumption In that regard. the Com-pany has submitted a comprehensive report to the Massachusetts Department of Pubhc Utihties (MDPU) outiming nutif ives the Company is considering to reduce sigmhcantl/ Its dependence on m' ported oil and to gain greater control over future growth Tlus report will serve as the basis far developing a long rance energ'/ planning process through which the Cornpany can review with its regulators, government chicials and cus'omers the alternatives i available to diversity the Company's fuel mix and to minimize now generating capacity nx;unements The Company s construction program for the pen ,i 1983 to 19if/, which is subyct to continuing review and adjuntment. is corrently est unmf to be approximmeiy $706.000 000 (includmg nuc' ear fue! but excluding 1) allow-ances for funds used dunnq constr uction and 2) potential ccal conversicn program ;os+s ) Funds generated internally are a major soutco of constniction fundmg nnd represented 8h 7B', and b9% (resxd see Noto J of Notes to Financial Staternents) of construction expenditures m 1E 1981 and 1980, respectree!y Substantall/ all of the Com-pany's construction expenditures for 1983 are expectnd to be fmanced by mternaHy generated funds. and a signih 7 cant percentage of future construction requuemenm will be funded internally, provio d that the Comparr/s ra*e structum is adequate to cover inemasing costs It is anticipated that the balance of the Company s construcnon , puxyam and its long tenn debt n 1tuntles and unkmg fund requuements (the latter two items aqqn gatmg
$1til.175 000) will be financed by the issuance of debt and equity secunnes The Company anticipates financmg its ,
nuclear fuel nquuements under ;ts existing nuclear fuel financing agreements or sinu!r anangements The Company s outstandmg Fust Mortgage Bonds are rated Baa by Moodyb Investors Service be and BBB by Standard & Poor's Corporation During 1932. the Company's prefence stock ratinc;; wer ? r<used to BfiB- by Standard
& Poor's Corporatton The Company moots increasea m workmg capital nyuiremont; as well as the inteum financmg -
neo t,ar y far it.-; construction program primarily through bank borrowings (Sm Nate 7 of Notes to Schedulos of Capt-tal Stock and InJe Ltniness) Rev'enues Expenses
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- 6. _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _
l 20
.? ' STATEMENTS OF INQQME . ..
f' hn thousands. except Earnings per Share) Years ended December 31, 1982 _ F81
- 1980*
Operating Revenues: Electric $ 565.560 S 538.610 $ 476313 Stmin 17.008 16.312 15.255 Fuel and purchased power ad3 istments (Note J) 454 683 471.816 , 378,581 Other 19.016 15.455 18 203 l Total Operating Revenues 1.056.267 1.014 911 885.634 Cperating Expenses: ; Operation ; Fuel (Note J) 440.340 458.151 430.112 Net purchasai power 86.(F7 82 774 ' 11.740 526.39r/ S10.928 441.852 Other - 151.461 140 399 116 605 Total Operation Expenses U77.8b6 681.327 ; 558.457 Mainteriance 51.878 48.425 42.700 Deprecnation(Note A) , 53.866 52 349 49.852 Amortization of deferred cost of cancelled nuclear urut G 'ote B) _ 13.380 , Taxes - property and other (Note D) 74 173 85.078l 85.000 Provimons for income taxes (Notes A and E) ; Cur rent 14 000 (6 769); (896) Deferred 91D1 56 122 ' 37.4E6 Investment tax credit - Nht 26 923 (3310); 1.636 Total Provision for Income Taxes 50.087 46 013 , 38.196 Total Operating Expenses 924 242 913 102 ' 7/5. i6S ; Operating Income 132.025 131.749 110 469 l Other Income: l Allowanm for other funds usai j dunng construction (Note C) 4 781 7.055 l 7 270 Other - Net 1.140 _481 1 (121) Operating and Other Inccme 137N6 '39 28b 117.618 Interest Charges: i I ong term debt 6L518 51293 l 51 455 Nuclear fuel and relatal Iinancing obligations 10.453 8.810 ; b "T/ Other 8.081 32 E02 20.968
. Allowance for borrowal futals usut j durmq uanstruction - credit (Note C) (6 4S61 (26 512):
(25.7/4)l
'Ibtal 77K6 C6 063 b3.616 Net Income (Note J) 60.360 73 222 63.972
'Prefetint dividends provided 5512 5.512 5.512 Preferenm dividends providal 8 986 j 9 248 9 581 Balance Available for Common Stock $ 45 882 _58_4Gi S $ 48E/9 j Common Shares Outstanding 1weightal average) 14.434 14 074 13.763 .
0 Earnir.gs per share of Common Stock (Note of $318 $415 I $3 55 The t. ate . and schedules on pages 23 thzough 33 are an integral part of the financial statements M anagement's Discusmon and Analysis of Operations and Finanna; Condition is on paces 18 and 19 4- *Reshited. see Note J of Notes to Financial Statements l l
)
i 1-t f i. 4 4 1
- SOURCES OF = * < + FUNDS P 21 l
i
- un thow.anri.s) -
l Y"arund.*l D"combfr 31. e tw 1931 1980* l Statements of Sources of Construction Funds l I Fumia G"neratai internally- j l ' Net locome $ 60 380 ! $ 73 222 $ 63.972 i l Adct - Arnounts charq<xt (cro<hti<f) not remunny funds currently. ; D .pmcuit um (Note A) 53 W T; i 52 349 49 852 1 Amatizatiori of :foterr"<1 cost of cann,lini nuch u mit INote B) 13.380 - - l Other Amortization 2 002 2 092 528
- D>ferro f income taxes (Noto E) 9.10; W 122 37 456 Amortra on c? nucimr l'iel(Notes A D. ami G) 15 935 , 11 M1 12.237 Investr ent tax crocht -- net (Note E) 26 923 . (3 340i 1636 Allowance re fun .is usul dunny const r uct ion (Ns o C) (112t;/; ' i33 014)
W by)! l i s,, Total trom ni eranons 170 413 l 1614 i a 132 637 ' I .ew Prefen ui d ec o lendul. rlmi 5 512 ';E12 . 5 b12 , l.im - Pn:ference dwiden in docian d 9 UU5 i 9 291 UDI le - Common dividenduleclarni 40 bH3 I 39 523 ; 37 Sa . F ut v in gen. .ra al m'er nally llo 013 , 107 1/0 ,. '79 E*i Fun'!s Ubtamed from Outado Source: ~ l ! , L!e ;(16 @mpt lon:J of Secunt a s , j 1 i Sale of Gimmon Snx:k 7 535 1, 6 124 ! G 280 i Halemption of Proterence Stock t17b9; 3 bHh { (2 011)! j Inovano in Long term D'bt Outstan .mq 3 310 ! 102 032 i l i D br Hetnements , (1:' a # 13 OG3) ! H.4 mpt:on of Secutal Note:, il Gia,; i 1 M'O (1 Gioi Inc' u.e ( !! vrcase) m notes p r/ile to bank (lv t) m ,M 91 020 4 l Pra min trom Nucle,a Fuel ancf Pet 6d Financmq Ubliv:onx ;N1i Fund, obtamni from on% lo au:m - Il > 21 ' 1i."29 '/9 N i ( tthi r Fun. b Provhan i ui..ni) [l. '!. i re - j file 1 ( 1)s' IE O ' ' I/ 0 $) .
- r ukmq < la; uni m
- i n'h t change , il % ic < 1/ n%
- 7 629 15 h 5 433.
Il tal fun < i s prxo tni 5136 463 $19 >> $134 20 (:. 'i / r umon I x; + n nmm liiur $13o n J $111 !61 S121 Z/u
% t m 1 ne! i. - > ' /4 12 u/1 j i'uta: < vnnn um :n e>. pen ht un > S' " i" . $1?! /i $131243 i
l Statements of Retained Earnings Ktano at u unuunu c ! year d', j )h N l' 4 I? .!'i n '[ Or Ir 't ! $1b' - SI3 1 $1) 5119 C3 Cumulat r/e A im ,tm. n: 'o n thi tu. 4 d tu';e retuntimLtc 1 iit'" _ gj F . ? <2 9; u A ,lO +. 4%l l i / bt L i . i IN 0ll ll? !O f ' Net I:ri en i f4) b 1 /3 21. ( L > 'il
'E q /01 R3 '
'ie -
,j C L.!i UNI I' 't hI.i [h 'cb I!' \ l : l l l'r +ct n , t !M'I b '12 ) i bl2 ' 151, .t enm a t tre 0 291 U n si O ::mO!i $O b _ j ' t.03 37 l w i um sim i iinance at end of ynn $1b/ , =; Sil'/ LOi ' SCR 611 i m er anti m -hniu es on e ws ,B mou.;' a:o an i 5,;d p u of " , nna:r . ar , ala:a; . .as .n :1 ArniNr ; o! t1; vr a' :n an 1 F: in, hi!( Mn h'1 in s on pa.. N :tc n.14
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?
1 1 I.I > MM - 22 I s (m Mw.an< L, l in f N ( f l' l* 1 j Ils i 4. IYiI)ef 3l ' IU < _ _ _ _ _ l4
- l Assets !
l Property, Plant and Equiprnent, at or iq:rui cret C. m; A C, anti i O ; l Utihty pl.uit in u ivice ' l F lert nc plant $17 6 !sH 31 N2 3 IH i harn heminq wt v& pl.ae ?J hl2 3" b(0 1 f/m IW i '/01 Eii [,e % AcCtInlukt erj t de pr ectist l'.d l !Ul '/f 'I $liblb '
'N (N #13 C 7tb NucL ur tuel l',1 U d 11313H las Arciniinbin <! e tmor t i/onon li,.f 7/3 -IL' i '> i 'a'33" *M
&nutihty pn p its/ 93 107 in An urnu'atisi depi ctation . 1 % 1 IN Construr tion v r.rk on prr,'pMLie D) '+ 1 t c^ '/9 O W l 100 M7 1 31-1'7/3 Investinents in Nuclear Electric Cornpanies, at unuty of 8FM Current Assets: .
L,a: .n .
< 1o. . L.-
Acn >unts n s + 'iv.t! de nr t - Gu: .t r 'mer s 'ol e I ih a9 ( r het < D1 11 1J; I litt ! L i!; F4 ' t l} 'j lS is i f/+ r. is:'nv' a:D l( Iht I fdi , 9) h.1 w t , x; 4 nw .-. N (it h r cou, , a. . . 4 sl / ; t' ii 19 1 Deferred Debits I;. 6 n. s t o rt of one. , 4 iw a: u:ut G ^ n ol'.s> 91(n; (m Guu;A,ual.h r l i n; ; . 9b
- i - .' L a i.. i e i'l ' i. 519li 013 Capitalization and Liabilities
(. .e. aa ,en pint '
- cho f.: . o!ca; ?.d . s k anti: ;$ b ed:.,:
Corninon Stock Equity i if S i o rA Cumulative Preferred Stock i4 * 'O g Cumulative Preference Stoch Non Maru tater c lhin mib!" Rt:n - s/ Ibi.vnuble S+ nes + iiN Long Terrn Debt .C ui Nuclear Fuel and Related Financing Obligations 4r4 a)i s u Current Liabilities: , i'- IN 1.% 5 un ;!Etc dui ecnh.n 1, at i iro 5 10 , N. :. -; j uch!" i iur i 'i a o An eunt: . n c/hi. - . l 'U: 1:04 f (le [ s , t, ! ' 't i l '! j 's t. tXt " i t! , i t . t f ;. ! . :' ! .t ' ',1X t - . Nu'e , D h . it t. t j +r.
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' t uLa, dint ;1 R- 11.
t P t .. ! < un e: ' uh , , 1 7' .a . 1' . 1:41 Deferred Credits: Ao ..c. i . :. r : as . :a v . . . F: . ti T. y
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s 1 m_________.__ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ . . _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ . _ . _ _ _ . _ _____ _ _ _ _ _ _ _ _ _ _ _ _ _ _______w
~
. N W G N Al M -
23 (m e housaraim l Ymts endna D"cember 71 1982 1981* Common Stock Equity, I Common Stock l Par value $10 per share (Note 1) l Autharimi 17.531 b(O shares , Outstanding 14 66b.213 and 14.2181436 share: $146.6b2 $142.190 Premium on Common Stock 165 709 160.636 Retained Earnings 152A84 147.504 Surplus Invested in Plant 405 405 Capital Stock Expense - net (179) (258) Total Common Stock Fquity $465 071 $450A77 Cumulative Preferred Stock, Par value $100 per share, authonmst issuai an<i ou'stanchnq (Note 2) , Redemption Shares a* 1 l* '. . pr ice Outstanci:nq 4 25 % $103 62b 180 M ) $ 18 000 $ 18 000 1 78'o $102 80 - 250 000 25 000 2S 000 8 88 % $10'7 00 400 000 40 000 310 000 Total Preter red Stock $ 83 000 $ 83 000
=
l Cumulative Preference Stock, Par value $1 per sh ue. 8 000 000 aut hot tzed issuni .uid t illt blallilitiq , .+ l Non- Mandatory Ihjeemable Series (Note 4)
$14d Serles - 2 67b.000 shatea '
$ 2 675 $ 2 67b Preintum on $146 Su:es 35 668 3b 6b8 Capital Stock 1 xpense - not c06) 186)
Total Non Mandatory lhteernable Preterence Stock $ 38 Ar/ $_38 247 Hedermable Ser ies (Note 3)
$1 175 Ser.es 1206.800 and 4 A00D11 share: $ i207 $ 4 40 Prenuum on $1 17b Serles 35 US6 3G 652 j Capital Stock Expense -- net (58) (87)
Totai le xteernable Preference Stock $ 39 235 $ 40 965 1he n.e. en ;m ; /b na.mah 26 are an m npi p a t or na ch. t w
'I'eu n I a N e J of N< i ; tu l'inanc:al meeno-L i
i i SCHEDULE O, F IND.EBTEDNEES . . 24 Long-Term Debt (Note b)- First Mortgage Bonds: On thr,usan<h) Doo mcer 31 Ser n + lue(hs ) M dtuy 1952 1981 D 3% July 1.1982 S - S 15 000 E 3 Aug 1.1E64 18.000 18.000 F 4% June 1 !W/ 2b 000 25 000 H 4 Vi June 1 1992 16 000 15 000 1 4 Vi Nov 1.19'h 25 000 25 000 J 6K June 1.1997 40 000 40 000 K 6% Nov 1 19 % 50 000 50 000 L 9 Dec 1.1999 50 000 50 000 M 9 F-4 Jul/ 1.2000 60 000 00 000 N 8!. -. M,r/ lb. 2001 7b 000 75 000 S Vanable Jan 15 2002 25 000 25 000 O- 9ft D. c 15.2003 96.000 95 000 l R 10 95 Oct 31,2004 7b 000 75 000 , P O4 Apr 15,2007 60r0] 60 000 l Total First M( rtqage Bon (1s 613 000 628 000 Other Long-Term Debt: ! EurochAlar Cn dit Facihty (Note b) 75 000 75 000 ' Smun <! Notes. clue Novet aber 15.1985. with inten st at lit & 14 300 16 440 I Collateralimd Pollution Contr01 Hevenue l Boncis. 8 A percent. (fue 11av 1.1981 1b 000 lb 000 Les. Funcis hekt by Tr n:, tee (7 2b21 (12.967)! Total Long term Debt 710 51H 721.473 ' La Lont; te rm Debt clue wi hui t one year 4 alb ' 16 640 1.ong Ter m Debt. - Net _$7c0 LO3
$704 833 Other Debt: l Nucle.u Fuel ant! Rel. ant Finanung obhuationmN. 6) $ 2 000 $ b0 000 Notes l' rcable ( Note 7) S bl 000 S 69 000 W not <:on pa:n s 25 throtuih 26 a. m m , , M p u + . .! , L , ,L, t
i m_ _ _ _ _.__ _ _ _ _ _ _ _ _ _ _ _ . _ _ . _ _ _ _ _ _ _ . _ . _ _ _ . _ _ _ . _ _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . . _ _ _ . _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ . _ _ _ _ _ _ _ _ _ . _ . _ _ _ . _ _ _ _ . _ _ _ _ _ . _ ._
J f
! NdTES TO. SCHEDULES OF CAPITAL $TOCK AND INDEBTEDNESS 25 i 1. Common Stock.
I Since December 31. l'J/9 the Company has issu<lishares of Common Stock. $10 par value as follows: 1
- Number Common Premium on of Sharesib) Stock Common Stock Balance December 31.1979 13.626A39 S136,264 390 $154.156.615
; Dividend Hemvestment Plan 271.205 2.712.050 2.876.336 i
Employeo stock Ownership Plan (a) , 29.938 299 380 392.562
~
l Balance DecemL .r 31 1980 13 927.582 139.275 820 157A25.513 ! Dividend Reinvestment Pian 291 A04 2.914.040 3.210.711 , Balance December 31,1981 14.218.086 112.189.860 160.636.224 ,' Dividend Remvestment Plan (a) 146 227 4A62.270 5.07 4 Balance December 31.1982 14 666 211 $146 652.130 $165.706.720 N' a The remaminq authori7ed shatim n served for hiture issuance are Divid :nd Peinvestmont Plan 618 425 sh res. Employee , j Stock Ownoiship Plan 220.862 shares i b The shareholders have approved a merrn r pursuant to which the Company woulJ become a submdi.ny of Boston Industnes , a Massachusetts business trus' with authonzed common stock of 50 000 000 h as and the shares of common stock of the
. I
{ Company would be chanoniinto an equal number of t bares ul common stock of Bos'en Indusines The merger s sub;ect to
; ap; roval by the Massachusetts Depar tment of Pubhc Utihties (MDF U) On Febi uary 9 1983 the MDPU issued an order deny-
) ing the Company's petition for such approval The Compan'/ is exammmq the possibihty of seeking reconsideration or appel- , i late review ! - ! 2. Cumulative Preferred Stock I - There were no changes dunng 1980.1981. or 1982 ui preferred stock Upon involuntary hquidation of the Company. holders will be entit k'd to $100 per share ,
- 3. Cumulative Redeemable Preference Stock:
a Senes Number Par
$1 l'in hasued March 19 1975) hd i bi ot shan, V2 Promum
~
Balance Decemher 31.1979 5 000 000 35 000 000 $41650 000 ' Hedemptions 215.500 215 500 _1.795.11'a I Balance December 31.1980 4.784 500 4 784 500 39.854.885 Redemptions 381 500 384 500 3.202 885 Balance December 31.1981 4 400 Of0 4 400.000 36.652.000 ' Rodemptions 193 200 193.200 1.565.723 Balance Deceinber 31.1982 4 206 CO $4 M 800 -
$35u% 277 i _ _ _ _ _ _
i a Tou Company may under certain market conditions ce requued to purchase 200 000 shares annually at a pnce not to excv et $10 per share plus dividends accrued As of Decemtwr 31,1982. the Company had purchased 193 200 shares relative to t'..o current ledemption requirement. the remmnder of the current redemption requiremmt was completed m earP/1983 o Subiect to the prior preferential nghts of f he Cumulative Preferred Surkholders. upon involuntary hauidation of the Com-pany, holder s of the $1 175 and $146 senes are entitled to receiv : $10 and SIS per share respectively
- 4. Cumulative Non Mandatory Redeemable Preference Stock There were no chanrs during 1980 1981, or 1982 m the S146 senes of preference stock See Note 3 b I
l . l
h 4 I i 5 ) " j 5. Long Terrn Debt j Substantially all propert /. plant and eqtupment and m7tenals and supphes owned by the Company are subject to hen i under the terms of the Indenture of Trust and Fust Mortgage dated December 1. IMO. and supplements thereto The aggregate principal amounts of long term debt meluding sinking fund requaements due m the five years 1983 through 1987 are $4 016.000. $38.890.000. $1b.770.000. S79.250 000. and $29.250 000 respectively The unamortized premium on the Company s outstamhng debt less expense of issue, is being amortized ratably to i the matunties of the respective debt - l The Compan/s Senes S Iknids txxe mterest at 1810% per annum for the period January 15.1982 to January 15. 1 1983, and the rate will be adjustal each year there2f ter subject to certain hmits tc 127% of the monthly average yields to matunty for actively traded marketable U S Treasury fixed interest secunties. adjusted to constant matunties of , ten years The mterest rate for the penod January 15.1983 to January 15.1984 wdl be 13 4 L i The Company has issued $75.000.000 pnncipal amuunt of Revolvmg Credit Notes due December 1,1984 pursuant ! to a Eurodollar Craht Agreement The Company may convert all or part of such notes mto a term loan due October 1. l 1986 Boirowmas under the agreement bear mterest m relation to the London Interbank Otfered Rate The offective j rate nf mterest at December 31.1982.'was 10 3125% The Company is obhqated to pay a commitment fee on any l unused portion of the facihty l 6. Nuclear Fuel and Related Financing Obligations Under the tenns of an agreement with Pr uLease. Inc.. the Company is able to f mance from tune to tune the acquisi-tion costs of nuclear fuel up to a maximum amount of $50 00Cw00 at any one time outstanding Principal is paid quarterly on the tusis of nuclear fuel butnup The effEciik mterest rate (10 ' 7 and 13. S at December 31 1982 and 1981 respectively) fiuctuates m relation to pr uLease's nmety day commercial paper rate On Februar'/1G.1982, the Company entered mto a credit agreement with a major commercial bank pursuant to this agreement. a wholly owried subsidiary of the Company may issue not in excess of $35.000.000 pnncipal amount of commercial paper supportal by an nrevocable letter of cruht issued b'/ the bank and loan such proceeds to the Company The cre(ht agreement also permits the Compan'/ to make revolving credit borrowmas from the Bank pro-vidui that the amount of such borrownigs and the commercial paper outstandmg do not exceed $35 000,000 m the aggregate The crecht agreement termmates June 30.1986. subject to automatic une year extensions unless the bank gives three years notice of ternunation The revolving credit loans would bear interest m relation to the Bank's prune rate The of feetive rate of .nterest on the commercial paper outstanding at December 31.1982 was 9174 The Com-( pany is also obhgated to pay a comnutment fee on t he average outstandinq pnncipal amount et commercial paper The Company's obhoatiotis under these financing agreements are seemed by a secunt y mterest m certam nuclear fuel These secunty interests are sulxndmate to the hen of the indente'e ocunna the Campany's Fuet Mortaage l Bonds l
- 7. Notes Pa)able To prowte finarmd flexibihty tho Company mmntams credit armngements aggiegaring approximately
$146 000.000. These m rangements provide for bor rowings at or b Sw the pnme mterest rate and require commit-Inent fees to be pmd on the unused hnes of craht.
Informatton regardmg shott ter m borrowings is as follows ithous<mds et dol l arm 15 W1 19F0 Maxmium Short-Term Borrowings $171000 5292 200 $171200 Satly Weighted Average Amount Outstandmg S 44 145 $160 888 S124 885 Daily Weighted Average Interest Rates At Year End 10 68 % 16 47t 22 3GL ' Dunny t he Year (including conumtment fees) 14 99 , 19 76% 15 96 %
,e .-
t l i
NOTES TO FINANGAL STATEMENTS -
- 27 A. Summary of Significant Accounting Policies The Company is .subect to regulation by vanous !Mr c . , Because of tPe offoc* m rm;ulated busmesses of the rate-trakira process, differences nur/ ;uise m the apphcaut n of generahy accepte-rd accountmg puncip!ea between regu-lated an i normxjulatal busmesses Such dif terences are re!anxi principal!y to the time a' which vanous items enter into thmi *r rmnation of net mcome m acconlance w *h tlm principle 01 matchm ; cm and revenues (Accour.tmg pohcle ' > a!e al;.o deScrIbid Irl Note:: C. E an:1 F )
- 1. Principles of Consolidation Tin _> tu.anci.d : tatenet:. inchu!" t!s accounui of t L. amp uiy om! c; whd, ;n <i tmanuma suhdica'/ BECo Fuel Compwy. In< In the proem of consoh lation. a4 m'.ercunpany balmces and tr:m . cum > have t *ma ehmmated
- 2. Depreciatim and Amortization ply; cal pro;mtty is de pn <aated on a stralqht hne bois at ap; toxan 6 ly 3 lb am di At 'ht imm ut renn ment cf prop. ;ty uruts theu co:.t and the coct 0! rommi! a:o chan yni to an ! ';;dvm;e i cr ed ' to accumuLited d-peciamn ,
M unten.mce exp n," it; charq"d for th" cost of runnn' rep ms rep' wme' ' ct i : ny accounted tar aa umu uf [r, I'ity. .uB l inn U 1r h i tel n)"nts of plants and pn >p6 r t le3 as ' hoy an ' up ~ U n d
- I!.e cost of nuclear tool is ammiaed to fuel exp"nso bami un the quannty et ent : c puduced f ar the generanon ut I Ilt M'* riClt y Nuch 'ar tut d exj n nse a!su nicluJes a i r:)viaiori tut t he costs .i::. oct i'.e d '. 'ri 'ito u 'inni9 dis;x> sal of sucti t .H 3'o also Notes D an ! G
- 3. Forecasted Fuel Clause The Company s retail tu-l a 1,ustm"nt clause pet nuts estunawi tuel and purche f p re a cc ta to be inikd +o cus-tonmn. nn > Jhl/ rbas.ni upon tarecasted kilowatthour saku unbzmg a fon cas'ed rd'. t ha' la f-ter nanod quarterly l{. t h PlbStX]ut 'rit r, tit' is adp l . 11 tJr inly (hih 1 Price In toreCd?
- i (W' ' bl!h vi .
- 1Su. . C'.u.l! CO ds inC H rod B. Cancelled Nuclear Unit The Company commenced amortiang the cost of the cancehal Pilgum 2 in May 1982. over a thuteen '/ ear penod pursuant to retiul rate ordets of the MDPU 'I ho estcnated cost of the project uevised from $291 DN 000 as of Decem- .a ber 31.1981) was $278 000 000 (SIGH Om nou atter givmg etfeet to mcome tcws; an i!he MDPU s erdars allow the Cempany to recover through rates over such p-nod $116 800 m0 nvhich is net of a.ssoaated taxo and $45.700 000 of financial canymg costs Tho Attot ney General and ather interveners have appea!cd the MDPU s accision to t he Mamachusetts Supremo Judicul Court C. Allowance for Funds Used During Construction In acconlance with n Wator y account mg. t he Company upitahzes as par t of const ruenon costs certam general and a inurustIanve costs an i an allewance tar f unds used dm ing conan uction ( AFUDC)
AEUDC teprexnu; the estunatal cost of bor rowed and quity funds u.ed to f mance the Company s construction
; roq:.un This cost 1; not an item of cur rent cash mceme. but is recoverni over the service hfe of plant m the tann of mereasni revenue collectui as a resu!t of Iagher deprecunon expense AFUDC rat" ; tar the v"ars loH2 1981. and 1980 were 12 6114 2" and 13 31 revecuve!y The MDPU has held q"nenc ; tacenimos requdmg the allowable method of comput mg AFUDC and a decision is snu pendmg D. Commitments and Contingencies
- 1. Capital Commitments At December 31. '.982. estunatal contractual obhgations ter plant and egmpment , ere approximater/ $57 248 000
- 2. Lease Commitments At IWember al.1982 and 1981. the Company had leases covenna certam f acthnes anJ equipment Some of these leases .u e " capital loased as dehned by the Fmancial Accountmg Standards Boani. however under regulatory acceunt mg leases am n ; capeahmi D Had allleases wluch meet the entena ter capi'alleases been capitahmt the amounts of the asset and the habihty that woull nave I een meluded m the balance sheets as of Decemoer 31.1982.1981 and 1980 and the ef fect on egenses tot each ct those years would not have been matenal 4
4 l : l .F . I '? NOTES TO FINANCIAL STATEMENTS , 28 Estimated mmimum rental cornmitments under noncanctliable leases for years subsequent to 1982 are as fobows (m thou.unds) Total ICJ83 $ 12.044 1984 11.883 1985 11.804 1986 11.572 1987 10.653 Years Thereaf ter 102.513 A portion of the aforementioned rentals will be capitaliz'd as par t of construction costs in the future Information with respect to rentals imm 1980 throagh 1982 is as follows Capitalized As part portien Belated of Construction (m thousanda) . Rent Expenso to Capital I. eases Costs 1982 $11.700 $8.000 $3.300 1981- 10 400 7.300 3 000 1980 9.000 6.300 2.100
- 3. Property Taxes ~
In Decernt>:r 1982. the City of Boston submitted to the Company property appraisal ncnces and requests !ct voluntary tax payments (reflecting valuations and a tax rate whicit are prehminary pendinc; State certificaticn) which mdicate an annual tax mcrease of approximately $13.500fX10. of wtuch approximately $G WO 000 '. oukt ai p/ to the year 1982. tfus amount is m excess of the habihty reflected in the accompanying f mancial e nements The Company beheves that the propomd valuation is substanrally m excess of a justifiable valuation
- 4. Nuclear Waste Disposal Pursuant to the N iciear Waste Policy Act of 1982 the Company estimates that :t will tr lequaed to pay approxi-mately $33.500.000 to the Uruted States Depar:mont of Energy m the years 1988 through 1996 for dicposal of partia!!v depleted nuclear fuel in the reactor and :, pent nuclear fuel meurred through December 31.1982 Of thm amount. the Company haa provided for approxnnately $10 800.#0 and it is expected that the balance mH be recovued through
'he Company s fuel and purchased power ad;ustment c!aanes E. Incorne Taxes The Company s income trfore income tax expense resul's solely f:am damestic cperations Defermd income tax expense results from timing differences m t he recogmtion of certam expenses fer tax anu financial statement pur-pows invesunent tax crni 's are reflected in mcome over the esttmated usefu! hves of the related property Compo-nents of deferred mcome tax expense are as follows on thousandA 1+ 1091 1%0 Cancellut nuclear unit (Note B) $ 7 005 S37 234 ' -
Excess tax deprocmtion over book depreciation 13 bn9 15.514 i <20.050 Deferred fuel expense (18 340, :8.892) ! 3.397 Capitahzed property taxes -- 48 1 70 l Debt portion of allowance for funds used , dunny construction 1 750 3 626 4 012 l Other mdneet const uction costs 1 429 1186 j 1322 Massachuset tu corporate franef use tax (140 6 332 ! 4 891 Other 2 N7 1074 3 714 Total $ 91N i $50122 I $37 456 S The ettective income tax rates reflected in the tinancia! . statements and t he reasons ter thea dif ferences from the ' statutory Federal mcome tax Iate are explamed triow 199? _ _1981 1980 l Statutory rate 46 46 % 1 , 46 %
! rJinwance for other funds used j during const r uction (2 0) 49 7) { (10 2)
Massachusetts corperate iranctuse tax 3E 29 Other (23i 29 l JO 8) (0 8) l Ef fective Rate 45 h ; 38 4 37 9 % I
u,
.. .e - : .
s . s NOTES TO FINANCIAL STATEMENTS 29 m Net operatmg loss and investment tax credit carryoversihat arose in 1981 were utdized in 1982 These carryovers arcce because of the cancellation of the Pilgum 2Inuclear unit in 1981. However, mvestment tax credits genented m 1982 in the amount of $ 2.737.000 are bemg carried forward Federaliricome tax returns through 1979 have been examined and closed , F. Pensions
'The Company has a noncentributory funded plan (with cortam voluntary contributory feat'ures) covermg substanually all employees Pension accruals and theportion added to construr-tion costs were as follows fin thousands) 1982 1981 1981 Total Accrued $6.458 $4.237 $3 63[
Added to Construction Costs 1,485 975 83 5 The Company's policy is to fund pension costs scrued using the aggregate cost method in 1981 the Company < adopted the aggregate cost method m its entirety. thereby eliminating a!! past service cos: The actuarial preserl value of accumulated plan benefits at the annual actuarial valuation dates were as follows un thousands) January 1 1982 January 1.1981 Actuarial Present Value of r l Accumulated Plan Benefits 1 Vested y $127.800 $101.200 Nonvested 5.000 2 300 , l Total! $132.800 $106 500 ' l
- 'A mne percent annua! rate of return was assumed m deerminmg the actuarial present value of accumulated plan benefits for both 1982 and 1981 The Company's basis for determinmg per[slon expense and fundmg of the plan co;isiders the actuaiial present l
value of accumulated plan benefits earned to date, as well as benofits to be earned in the future At January 1.1992 -+ and 1981 the pension plan had net asse*s avadable for plan benef t's of $156 003 000 and $146 600.000. respectively which represents full fundmg of the 6 tuaral resent l value of accumulated plan benef t's and partia! f ind ng of the benefits to be eamed m the future (which at January 1.1932 were ecumated to be $120 600 000) G. Estimated Future Costs Relateri to Spent Nuclear Fuel and Generating Plants The Company is expandmg its fuel storage facihues at the Pilgt an me to lhclude suf ficient capabihty for spent fuel through approximately the year 1990 Commencmg m J2/1980 the amortizauon of nuclear fuelincluded an esu-mated charge W future disposal of the Company's spent fuel These estimated disposal costs are subjec to review and are amortized to fuel expense based upon energy prodmf for the generation of electricity. and the pernd unal esumat.ed disposal. these costs are bemg recovered tarough the fuel ad:ustment clause See also Note D The depreciation rate for Pil grim Unit 1 does not melude provision for the cost of decommissioning the Urut at the end of its useful hfe. however. such cocts a:e mcluded m the depreciation rate proposod m the Company s current rate case and will be,mcluded in the accrual rates if approved bf the appropna*.e reguLcory authannes The Company also participates as an mvestor m two other nuclear uni's Both of these units are recoverm;. as par
- of their wholesale rates a provision for estimated permanent nuclear ruel storage costs and plant decommissonmg costs H. Information Regarding Jointly Owned Electric Plants and Long-Term Purchased Power Contracts
- 1. Jointly-Owned Electric Plants
, The Company is a joint owner of YannouthUnit #4. which was construc*ed by Central Maine Power Con pa:q and commenced operations m 1979 meluded in the accompanymg balance sheets is the Company s proportlanate share (5 888%) of plant in service cf $12.033.000 and $12.058.000 for 1932 and 1981, respectively, and accumulated deprec.a-tion of $1.686 000 and $1256.000 for 1982 and 1981 respectively The Company mcludes its share of direct emnses of Yarmouth Unit #4 m the correspondmg operaung expenses on its income statement y 6 i
Y .
'~
dEGi h;i.MMW P'fi!y?,? M !%. : ., . ,, .6, =% ; h"" ' hS:b N ffi{Y$ b Y? ~'" f. .' A
~
t A,NCIAL STAT ENTS 30
- 2. .c * *
~
, N' The Company 4ms fwe kmg-term contgeets for the purcliase of electnc power.'The Company is obhgated to pay its
' '$pfMthdate' share of the cperating ceiiMinchidingl'iephciation and a return on capital) through the' contract expi- ,
' ration date. The total t Inual costs unde' r'lliese contracts are included with purchased power expense in the Compa-
'O T /shfheterrEnts ofIncome. 'Ibe cunnacts sre as follows:. " ~
Y %* MCgmapany's1982.. y wunateShare_
,b-
- - , ,. "'s - (in thousands) Company
?- -
Share-of-Debt Int 6 rest j ,
' Contract'. ~ % Umt(s) Portion of Outstandmg 2 -
- Expiration Capacity . ~ Total Minimum (f) Mir imum thru Cont.
- Generstmg Urut Date Purchased Expense (c) Debt Service Debt Serv ce Exp Date CanalUmt #1 , 2001 25.0(a) $ 5,629 $ 718 $ 411 $ 3,373 Coleson CoveUmts 1985 2.8 1,151 705 668 106(b)
Connecticut
. e- \
Yankee Atomic 1998 9.5 8,013 1,485 1,024 7,638(e;
'" . . .' i1NItterYJnit #2 ~
1984 25.17(d) 846 599 288 289 &)
._ , 'tanliee Atomic
.j * .~1991' 9.5. , _ _ 4.264 277 170 1.625
' $19,903 ' $13.031 Total .
$3.804 $2.561 l
, (a) Repretents 4.73% of tile Company's installed net capabihty; the remaining four units hsted above aggregate 3.57 %
(b) These contracts do not extend for the hfe of the umt; however, the amount represents the estimated debt pay- . r ments through the contract expiration dates. , l
, (c)This amot nt represents the fixed costs of the contracts and ex':ludes fuel costs, the vanable cornponent. Total fuel l
,_ costs in 1982 for these contracts, included in purchased power on the Income Statement, was $35,424,000. Combined !
fixed and variable costs for the yoars ended December 31,1982,1981, and 1980 were $55,328.000, $52,333,000, and
$57,051,000 respectively.
(d) Composite % fbr 1982; dechnes annually.
' (e) Of this amount the Company has guaranteed $4,750,000. In addition, the Company has guaranteed $4,750,000 of a i revolving credit hne, which expires in 1984. l (f) Represesits the Company's. estimate of future mimmum annual payments to be made through the contract expira- l tion date. .
~ '
- i. Selected Finanidal Statistics
. SupplementaryFinancialInformation(Unaudited) a.Onthousands Balance Earmngs !
of Do'J ars Except . . Coerating Operating Net Avaliable For Per Share of l I'arnings Per Shas4, Revenues
- Inccme Income Common Stock Common Stock l
~ , .' 1982'and 1981 p- (1) l
'Marterly-1 y%ancial Data .
_. ggg
',- ,, "Ynst Quarter - 3299,223 . > $33,724 $15,011 $11373 $0.80 x 243.256, j30,300 11,936 8,287 0.57
[. Second Quarter
. 'Ihird Quarter - 264,865 - 38,790 20,545 16,908 1.17
,,.- 1%:rtta Quarter 248,923 29,211 12,888 9,314 0.64
.. , e ,. ..-
id g" Plist Quarter
.s.
~
- $279,389 $34,399 $20,744 $17,012 $; .22 M . SocoridQuarter ' ..
245,777 28,392 15,707 ' 11,991 0.85
' 264.616 ' 41,075 28,040 24,358 1.73
- v. - {.'"%Ouarter
,. Jhurth Quarter +
y, :
~ ' ,
, n ,c.' 255,159 .27,883 8.731 5,101 0.35
., M. -) Based on quarterly weighted avesage n;imber of shares.
'. J 'hostated, see Note J of Nctes to Financial Statements ~
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- h; NOTES TO FINANCIAL STATEMENTS .} .
,31 W Sto d N i '
7-' WM - "
' L/
- , Fbliowmg are thu repotted high a'nd low sales priIes'of Bostori Edison Company's cornmon' stock en the New York Stock Exchange for the. quarter' s of 1982 and 1981 and the dividends declared pei share during those quarters:
- g. - ,
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. High Low Dividends ;hoh Low Dmdends
, FirstQuarter .,
s '. J23%. 20 g
.70 22% . 19 % .70 SecondQuarterl ' ,:. 22%,% _ .20% > s
.70 22 % 19 % .70 Thitt1 Quarter ~ s '
' 24% 21 'a< .70 - c24% -
21 .70 FourthQuarter
- 26%~ 123 ' *; .
.72 ' 24W 21 % .70 J. Rate Proceedings ~
.N,*. ,
On November 1,1980, pursuant to a retail rat 4 order of theNDPU wliich allowed the use of a forecasted fuel clause, the Company began billing $53,257,000 of deferred fuel and purchased power costs over a 24 month period The i N Company recovetsd approximately $53.068,000 of sut.h amount. In an order dated November 3,1982 the MDPU dis-allowed $9,565,000 of such fuel and purchased power costs. Of this amount, $4,047,000 applies to 1974 and the bal-ance to 1980. The Company has restated such prior penods, the effect of which is to reduce after tax net income by '
$2,786,(2 ($.20 per share) for 1980 and $2,043,000 ($.21 per share) for 1974. Retamed Earrungs reflected in the accom-
. panymg Balance Sheets have been reduced by $4,829,000.
In addition, with no effect on net income 7 fuel and purchased power adjustment revenues and fuel expenses were each reducedby $762,(J00, $4.655,000 and $3,957,000 for the years 198C ,19S1 Land 1982. See also Note I. *
.s Report ofIndependent Cej;tified Public Accountants To the Star 4rhalders and Directors
- of Boston Edison Company
- We have exammed the balance sheets of Bostori Edison Company at Decer'nber 31,1982 and 1981 and the related stateme"its ofincome, retained earnings and sources of constniction funds for each of the three years in the period ended December 31,1982. Ourexaminations'were made in accordance with generally accepted auditing standarcis ~
and, accordingly, included such tests.of the accountmg records and such other auditing procedures as we considered necessary m the circumstances.- As discussad in Note B to the financial statements, the company is accouriting for certain costs of the cancelled nuclear umt in accordance'with a rate order received in 1982 from the Massachusetts Department of Public Utihties; howev'er, various intervenors have appealed that decision to the Massachusetts Supreme Judicial Court. The ultimate outcome of these proceedings cannot presently be determined. ' In our opinion, sublect to the effects on the 1982 and 1981 financial statements of such adjustments, if any, as might have beerrrequired had the ultimate outcome of the Inatter desc.ibed in the preceding paragraph been known, the
. fmancial statemenes referred to above present fairly the financial position of Boston Edison Corapany at December 31.
1982 and 1981 and the results of its operat!ons and sources of construction funds for each of the three vears in the .
,, period endeo December 31,1982 m conformity with generally accepted accounting principles apphed on a consistent basis. ' ~
3 , ( I
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.J5nuary 26,1983 /~ . '
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$ 7,Yaial %.u. AcxxaustingStandardsN6.38Jpurpcme $lipenng*= of provid,ing mmitaryinfat, certain inforrnation about the effect of changing
} ]'f .dutoes.Jt188uld bektewed asin'esi.imats of the appoximate effect of inflatiori, rather than as a precise measure.
nanaannt doller amountsrepresent histoncal cost 4 stated 1,n terms of dollars of equal purchasmg power as mea -
- pg'. yyp?%
br fred by theVonsumers,Pnceindex for alt Urban Oorsumers (CPI-U). Current cost amounts reflect th k N.M 4MS bceshidant p from theLdam the plant was aQdudad to'the present. and differ from constant dollar amounts to
). ,
, j the extent triaispel:itic prices have in(passd,rVior'e' les's rapidly than the general rate of mflation. The corrent cost of
.gp ~. : plant is determined primarily by inde4ng surviving (platitby the Handy-Whitman s . .; t ition Qasts/Smce the utihty plant b, not expected'tolbe replaced ' precisely in land, current cost does not necessarily E 'd - hrepresent the tupleuiant cost of the company's psoductive capacity.
Fuelinventones dnd the cost of fossil fuel used,in generation hava n_ot been restated.from their histoncal cost in E ,} . + ".'-ncrrunaldollars. Regplatkx1 hmitstheQecovery of fuel through the operation of adjustment clau
- 7 . basic rMe schedules to actual 3nks.'Fdrthis reason,1uelin'ventones are effectively monetary assets.
. Ngeg .S XOwDepreciationM dete'rmmed by api 9ying the Comdy's composite depreciation' rate
~
nancidstatemfn)sisioCedhisted ' ( y ' Ww N
',/' ,}M,'@hlince only historical cast's ahnedui:pbic for mcome "i . Under rate-maloog.prespibedl#the,.
regulatory cortirmssions,tc which the Company is sublect. only the historical ;
c ; '
!." icost eiplant is re, cover?ble m revenues aq depreciatind %<wefore, the excess of the cost cf plant stated in terms of
' [.obnstanf6 dollars or cuirent cost that exceed the historical cost of plant is not presently recoverable in rates as deprecia-
. ..tibn. and is reflected as a. reduction to net :ecoverable cost..While the rate-malang process gives no recognition to
*5,." ? current cost of replacmg property, plant, and equipment. based on past practices, the Company beheves
- will be
, ' j~. ,41L,wed to carrion the incregped cost cr. us rat investment when replacement of facihties actually occurs.
IThe Company, by, holding assas such as neceivables, prepayments, and mventory, suffers a loss of purchasmg
,* j' ' ' power durmg periods of inflation t. 3cause ' the amount of cash rec.elved in the future for these iteme will purchase less.
~
" > Conversely. by helding monetary habihties, primarily long-term debt, the Company benefits because the payment in
[^' N . the future will be made with nominal dollars having less purchastrig power. The Company has sigmficant amounts of 2 ong~torm t debt outstandmg which will be paid back in dollars havmg less purchasing power and. therefore, for pur-3, ~ 0 ' :.7 poses of these mbhtions, has a net gam from hdiding rnonet?ry habihties in excess of monetary assets.
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s .- .' . : .g .L ~ s ,. p *d SUPPLEMENTARY INFORMATION , ,. 33
~ ~
Statement of Income from Continuing Operations Adgusted for Changing Prices f~ Constant Dollar Current Cost (In thousands) Conventional . Average 1982 Average 1982 Ebr the Year Ended December 31.1962 Estone Cost Dollars Dol:ars Revenues $1.056.267 $1.056.267 $1.056.267 Eipenses Operation and mam*enance excludmg nuclear fuel a:portization 716 801 716 801 716.801 Nuclear fuel amortization 15.935 19.241 19.627 Depreciation . _ 53,866 113 233 117.288 Amortization of deferred cost of cancelled nuclear unit 13.380 13 380 13.380 Taxes - propecty and other 74.173 74.173 74.173 Income Taxes , 50.087 50.087 50 087 7/,566 Interest Charges 7/.566 74.Sf6 j , Other Income (5.921) (5.921)
' (5.921) l Total Expanses 995.887 1.058.560 1.063 001 Income trom operations excludmg adjustments to net recoverat.a $ 60.380 *$ (2 293) $ (6.734) ,
amount Increase m spectfic prices (current cost) of plant held during the year" $ 139.944 Adjustment to net recoverable amount # $ 3.465 (11.979) Etfect of incrpase in general pnce level . (120 059) . 7.906
, Gain from decime in purcha .ng power of net amounts owed 61.476 61.476 T ral C 64 941 $ 69 382 I '
i
*Inc!ud.ng the ad;usunent to net recoverable cost mcorne from continu:ng operations on a conste.t dollar basis wou:d hw.w l bwn $1 172 -+
j "nt December 31.1982. current cost of property, plant and quipment net of accumulated deprecntion was $2 %0196 wh& ' historscal cost or net cost recoverabie through d%reciation was $1.408 30' Five Year Comparison of Selected Supplementary Financial Data Adjusted for Effects of Changing Prices (In thousands. except per share amounts and CPI cf average 1982 dollars > Yoars Ended December 31 1992 1991* I!HO- 19W
- 197H-Operatmg revenues $1.056 267 $1.109.7/0 , $102144 $927 553 $907.551 !
Historical cost information adjusted j for generalinflation j Income (loss) from contmumg operations l (excluding adjustment to net recoverable cost) $(2 293) $14 523 $15 551 $23 637 i income Goss) per common share (atter dividend l l requirements on preferred stock) $(1 16) SO08)! $(015) SO 27 l Net assets at year-end at r.et rm:overable cost $576.181 $5914T/ ! $620 262 $669.206 l Current cost information l l Income (loss) from continaing operatons i (excludmg adjustment to net recoverab'e wst) $.6.734) .
$7 283 i $2105 $rf43 l Loss per commen share (af ter diviriend ;
regtrrementa on preferred stock) $(147) $i0 59;i 9113) $t i 58) , Excess (deficiency) of increase m current i
. cost of electuc plant held dur mg the year ,
ove* changes m the general price level $19,885 9126.282j $97.012) $69.895 l Adjustment to net recoverable cost $(1 L979) $58.092 $(19 063) $234 222) . Net assets at year-end at net recoverab}e cost $572181 $59147/ $620.262 $ffe 206 Generalinformation ! Gain from det ine in purchasing powet of l net amounts owod $61.476 $83.911 $118 221 $153.463 Cash d sidends declared per common share $2 82 $2 97 $3 20 $3 35 $3 61 Market price per common share at year-end $26 00 $23 36 $25 20 $29 25 $35 36 l Average consumer price index (CPI) 289 3 272 4 l 246 8 217 6 195 4 i
- Restated to Average 1982 Constant Dollars Note pnor year amounts have been restathd for fuel clause revenue refunds as describodin NoteJ of Notes to Fmancial Statements ,
I t 4
~ Qf. &MAnni:2dQ&Nt.;b yl: ':if, Ri:~ ' . :%r C' S-hC6 MMK$dkW.9: ;ih 4d N R ' p.'.l'ee +
e - _ . . t,mt. .. z. ,, .
'1379 '1978 1977- l g-ep'>~~./, -[ ,i* ,
D82 ' M 1981 g '1980"
- ,- [ : WCageMMtyWWt :w.>y i ' '* , _ ,
?{: .760, 4' s760 ,
' E760 760, 760
% A?,%."NiWBostonStation mw _1 . '
670 670
.J -S 'y/)61gtimSeation ; ' ' ' Fi'O'
- 7 , 670 670 . b'70 1,026 1,020 Mysuc Staten * ? '.' 't,025 - .'N 1,046 , 1,046 .
1,046
- 297 -
.."y,.*%g,,36EdgarStatE5 ' .~.. -. <?. -~'
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48 48 48 48
.11heet St8 tion : f 3-(, [, M h h. [
., .4 36s @, ' - 36 36 36 35 -
WrmduthUnit44 237 i c GasTtutunes [ ' N237 - *"267 267 - ~267 26'7
- &,e - -
2,827 2,827 2,806 3,032 i ^. Total -. .@.. 2.751 } 2,802 309 ,..- 314 317 261
- ContractPurchases 323 ,:- 539
. , ' . :,.4337) (243) (329) (323)
-(382) -(590)
, ' ContractSales [
2,898 2,794 2,970
- Not Capability atYear-end ~*y,692 2,751 , -2,799 2,888 ~ 2.815 2,716 2,980 Met C=_=Mity atPeak ,
2,603 2,753 a _9I ; yShpeMlityReeponsibility . , m 2,411 2,462 2,895 T i,. ' .a2,436 f, - 2.480 f.,.4 2,460
') 'Q.'6 oNEPOOLatPeak' '-
j -i XAlmanTorfitoryHearty F ', s
'C - 2,100 . 2,002 2,031 - 2,013 l
, 2,181 2.077
' g. , , . _ Peak-MW -
4 > 67.8 % 59.7 % 57.7 % 57.2 % l
- . ( . EdloonTerritoryLeadFactor 568% SEr5W
,, Gener6 ting Station Economy ./ 10,095 10,171 10,149 10,190 at . BTU perNotkWh 10,112 ' 10,170
.y
. Generated l '
r ' Average Cost of Fuel-
~
Cents per Million BTU: 218.28 442.12 507.52 417.37 313.11 204.20
' Fossil 14.77 25 61 j' 27.57 f- . Nuclear 47.18 40.77 f 38.98 358 66 321.34 202.60 142.57 168 89 Obtnposite 325.71 Capability (notkW):
^
79 % 80 % 80 % 80 % 81% T '- " Fossil 79 % 20 % 20 % 20 % 19 %
' Nuclear , . ', 21 % :21%
Generation (systemkWh): 78 %
~
70% 78 % 65% 68 % Fossil . 73 %
'30% 22 % -
35% 32 % 22 % Nuclear - , 27 %
+ ,1PlantInvestment(000): $ 118,075
~
$ 143,316 $c 150,454 ' $ 105,761 $ 126,625
' , . c ? Additions (grossy ' - $ .140.209
'.' i 9,699 12,219 64.869 11.475 L s' 4 .23,130 11.119 451,578 403,737 367,954 387,614 T - [ "'[Beurerdents Accumulated Depreciaton i? , 533,762 493,087 1,669,411 1,615,846 1,514.123 1,467,975 1,441,653 t ' Amount of Depieciable Plant 1,762,337 1,781,060 ~1 ,909,038 1,770,038 1,676,496 1,614,740
~ 7'kgalPlant Investment " 1,892,775
- '. - y MM. Per' Average Cu'stomer ,..
~
3,400 3,194 3.053 2,96'i 7 ,(dol'lars) ' ' .
- ;*.',f; d 282 3.127
' d.I, Pe:'AverageEmployee
" . .? - ,.
i _ ,, 459.870 433.764 405,408 l
%. 492,397 ;, ,453,311 488.319 (dollars) ,
,e.
+ Per $1 Base Operating. '. . q. . .
3 77 3 84 3 91 4 G1 3 15
-o ,
.b:: Revenue (dothis) ' ;'311 )
c
-l,' . SpetricPlantin Service per, , t i
"&
- 3 *Esmion T.u;wgy Hourly 768 752 719 709 M' ' i,.M (dollars perhW) 806 800
' i Numabor of E'=_ "_ _n _ , _;; gg ,
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3,8 74' 3,876 3,954 i 3,874 3,837 3.921
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- SELECTED SALES STATISTICS 35
/
~
1982 g 1981 L980 11179 1978 1977 Electric Energy:(kWh in thousands) Sources , Net system output i Generated 11.344.914 11.124.788 12.357. 3 7 12.758.756 '13 001 323 11.387.793 ! Purchased 1.562.753 1.294f61 1.535 889 1.G12.0G1 1.330 998 1,454 494
. Interchange 44.263 ' 482.323 (1.091.794) (1.293 915) (1.746.756) (1 043 802)
Total 12.951.930 12.901.775 12 801.782 13 106 905 12.588 565 11.798 485 Disposition: Sales Commercial 4 931.918 #.7981C8 4 654 964 4.519.G12 4.428.213 4 276p14 ' Residential 2 647.217 2.594 7r 9 2 651.979 2.597.364 2 559 654 2.538 806 Industnal 1.730 237 1.755.431 1 827 181 1.791 647 1.749 563 1.779.245 Street Lighting 136.762 136 511 130.809 125.166 120 838 116 334 Total Retail 9.446 134 . 9.284.788 9 264.933 9.063.819 8 858.268 8.711 029 ? Sales for Resale - Total Requirements 494 193 482 151 471 443 459 871 453 184 439 561 Edison Territory Total 9 940 316 9766912 9.736 376 . 9.523 E90 9.311 452 9 150 590 . S Jes for RSale - l Partial Requiremsnts 2 089 938 2 257 000 2 132 352 2.631 798 2 315 731 1 705 129 i ' Total- Edison Systern 12.030 251 12.023 912 11.868 728 12.155 488 11 627.183 10.855.719 Miscel!ar.x;us Usage - i Company 112 206 108 930 121 236 114 427 11[477~ 100 124 Transmsman 264 290 255.609 313 356 357 573 323.167 283 584 Distnbution 430 BS3 404.72b 383 833 361.234 399 852 440 0'77 Other 114 297 - 108 569 114 629 118 183 125 886 118 981 I Total 12 951.930 12 901.775 12.801.782 13 106 905 12.588 565 11 798.485 Kilowatthours- Annual
- Growth Percent:
Commercial 28 31 23 27 35 32 Residential 20 (2 2) 21 15 08 20 Industna! (14) (3 9) 20 24 13 (17) Street Lightmg 02 44 45 36 39 76 Total Retail 17 02 22 23 17 25 Sales for Resalm - 4 Total Requirements 25 23 25 15 31 32 l Edison Territory Total 18 03 22 23 18 25 i Sales for Resale - Partial Requirements (7 4) 59 (19 0) 13 6 35 8 (5 5)
, Total- Edison Systern 0.1 13 (2 4) 45 71 12 l
Territory Sales by Class:(%) Commercial 60 49 48 48 48 47 Residential 27 27 27 27 27 28 Industnal 17 '18 19 19 19 19 Other 6 6 6 6 6 6 Sales Statistics: Residential Averages Annual kWh Use .,5.224 5 190 5 378 5340 5.310 S303 Revenue per kWh 9 64c 954e 6 05c 6 39e 5 Bbc 5 59c Annual Bill $503 59 $49512 $432 76 $341 13 $310 62 $296 33 Customer Meters at Year ena 615.342 610.764 602.636 596 523 594 713 592.720 Average Number 576.754 569 511 562.(T76 554 105 I 519 063 514 989 6
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SELECTED RNANGAL STATISTICS , . 36 p . 7 .. o - 3 82 1 981*' ,1980* 1979* .1978* 1977 *
OperatMg Revenues (000)
$1.0&Ri7 . S1'.614.941 l - $885.634 $697.668 ,S512.981 $588.107
'RVance for Common (000) - J $45.882 ~
' ,$58.462,t - $42.379 $43.267 $33.886 $22.067 1.arnings Per Snare - $3.1d' , ~54.15 $3 55 $3 49 $2 94 $2 03
,fDividends Declared Per - $2 82 ; $2 80 . $2.74 $2 51 $2 44 $2 44 1 Share -
Payout Ratio _ -
. 88 % , . 67% 77% 72% 83 % 120%
Book Value Per Share $3171 ' ' ' ' ~ $'1 68 $30 52 $29 93 LO 62 $30 09 Cash Flow Per Share $10 80 $10 42 $8 54 $9 69 - $9 23 $8 56 Return on Average Common Equity 10.02 % 13 35% 11 73 % 11 37 % 9 681 6 81 % Year-end Dividend Yield 11 08% '
- 12 72 % .13.02 % 12 36 % 10 22 % 9 43%
. Fixed Charges Coyerage .' 2 28x 2 25x 2 28x 2 52x 2 49x 2 24x
* ~ '*-
(SEC)
.s
.- Capitalization:
'J' Long-Term Debt - ,,53}b ' 51 e 51% _ SEs 52 % Sib
. ' ~ Preferred and Proferexe '
~ - -
- ., )
~
Eqwty 12 % 12% 14 % 14k 15 % 15%
.'35%
~
Common Egmty -.?E 35% 34 % 33 % 31% j
. Long-Term Debt (000) $706.503 $7&1833 $619 440 $6?1.080 $561.400 $603.198
. Cumulative Preference Stock, Redeemable (000) $39 235 $40 965 $44 514 $46 488 $46 457 $46 426 Total Assets (000) ,, $1929 940 $1.918.013 $1.782.909 $1.659.268 $1.542.746 $1.467.516 Funds Generated Internally (000)' $115 013 $107170 $79 696 $88 505 $78 267 $re947
-- Consts uction -
~ Expenditures (000) $136 463 $136 735 $134.249 $107 967 $119155 $108 688 Percent Interna. l i
,' Generation SDb 78% 59 % 82"b 66 % 61 %
Stoe.k.tolders (Common) art Year-end '58.853 59,478 61,533 61.561 57.667 57.302 Shares Outstanding: (Wtd Ave ) 14.434 415 14.073,823 13.763 062 12.389 065 11.534 500 10 851.704
..(Year-end) ,
14.665.213 14.218.986 13 927.582 13.626 439 11.534 500 11 534 500
. Stock Price - High' ' 26W 24W 24 / 24 A 26h 28;
.; ' $ '. , C Yoar-end
<- -. Lo.w .
~
. 20 26 19 %
22
' ' 18%
s
.21 %
19 M, 22 22 % 23 % 24 3 25 %
,.: . Year-end N(arketValue '
"$381.296 $312.818 $299.443 $299.782 $275 386 $297 012 1(000)
' * .,. fqdding VolumelCommon '3.750'.400 2.738.900 2 643.000 2.485 000 2.087.000 1.982.000 gi @ )- < s
,j i y ~. '
. T rl '82'
. 36a'rket/ Book (Year.orid) ' ' s 69 70 73 78 86
. " .Rr. - ice / Ear'nings (Year-end) '5
- 8.2 / .' S 3 , . 61 63 81 12 7
. . . 3 . , , . .
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S The Dtvidseik Betavestment and firmar=an Stock Pur- .'. . # I cS!ssePlan toan== man preferredaad AamuelMoedag - ? '~
. Under the plan. ===an l
fiefstence
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De Aamuel Meeung gitranthnMarn el the company
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1 chersholdessmayJunegtheirdividends stavastedin - /: essamenseacket percestercurlenamerisportcas. and sheenheadar= may tosietheir wiBheheldenApril19.1983,at11-00a.m. Acopyof S~ne t rher===*s pe= arks win ke sent en nequest-c ', , l l
. i
- 4 Investedin ' '
' esockatcurrent3prket c '
Anpern et--- inv=topuansic- ht n m. M Mdth W- - nons,optsa=vri====ht35,000pergoerter udoch gemeestoms[ip
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*. Ther, m-*.BecoseryhsActof1981andeseteir- ; DesitEastinge
~~
- sein ass h===ana mmananam-heginning January 1.1982 ?
andeeding December 31.1985- to indtvkleelseack-Ilsewept'andBassonstop m=r*=y=
- c gg,,gggy ,g,,g .
~
~
Inisses whe nshneet their dividends under the Plan. ggg ~s - todtwhhaelstockholdernesyne iodboemcludsheen for fedesaltaconnetem purpenas uutto$71io each Oleidendtagm a t Deses - 3; year $1tiOD'esajetatsseuraleidtvWeetavesteg .' CommonandPseluned - - . I under thsPIsn.-This election is esado en the stockholg. 1stofBahnaery.May Ausput.Novunber S. ess' indiet smessee mor ienera lor the tsmeMe yser ta Freineman ; . tatofMarch% September, nn-.h., utet the derndends would otherwies to on,*ianham , E taincome. e 'e angemessersqtenseleende 4 .
, When an election klis been made at to the - OlvidendspektenBeencef3tritann===nn pseiersind '
g stadtseper*==ad that Crh= tined Botsweated end pseiseence sanck in 1982 ase 100 ppecent tameMe as .p , Dtvidendhock")hesates elaess.Nthe h9- r dt$dentinameterlederatenenendtempurposes Fer-IIsinseemed Dtvidend hockis held as a cepmal asset Eng neipsman an the retav ama-ame plan eheuld almo naler to esse thes one year, a wi$ he tened at less-serin cappel c Se "Dtvidatud Beinvesument Plan" escuan of tins sel>ert 1 gains suben.seid. heesseer. leng-term capteel gatas s Iertestseenaget'd stavastedstridends. .
' walmesheassuottsafedthe esadewasp ammed as sedimaryincome dihe Eheldeet MAgent '
.'. ThePkst Bank W Boogds.
Ileinvestodhtvidend hackis soldsrithta ene yqier after ; 7- .s thelmeessement Does er W R to d====t to base been salg Anmer AgaitamemeglequeretSheets i ~ katessestfieseceeddoneof thestridendandthedate h e M Neu m ettonisofS meen ,,
!. subicit is eme yser afthr ths hnesehnent Dees. MCWInsenSSS ,
meerebtsin a copy of Roseen Edison Com-5 ten tesesseestyssvided by the Act does k sInses puschased under the Plan esith pony's anneel spport se the Securitigang smermange
. payasemes, sheios purchemod iar accounee _ 'h==8=8== enEunn 10-E. *ar**dingthe n==d # ,,
'. under the **mpany's teployee hock Ogrammientp Plan, sesseneses and sch.edgs thereen, by'the(' stag a wrttaust r . <ersfasespuschemedwithdividendswhtehtopsesent.a sequestto the Cledt etsupo Cotparariam av seedimefcepleet g ennam memiyggess '
Beisvepted dividends ter which am elocuen ts ang er Nyeu kive sp==*S== cnnenrningyour dpmesad per-
~
he mede hy a pmeretta=* wat he neenod let ted- '- mesee. change daddress. ana==siamenen eg ar-inen
., laceme tem purpenestin the some way as dtvtanna" stock cerunesses, transfer of corsesshp and ether stock <
payable toass participenne shmahnaame . acomunsnestems,sdenescontacttheStockTransfer = + N
- ABheldesrefsecordofshesesofr3 nan === Preferred Agentatthelogoteingadhess- -
A A h alacit are stigede te puticipate dmectly
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PO.SeaSee shmesare nestseemedin names other then their ' u; enn (e.g., s heeInr er bank naminae) must arrange per- Roseon. Y====n*====r*= 02iO2 e tic 4 stion with the necaed holder. E for any sessen a hen- # eficial esmer ts umable to assangs.pasurtees== with hae beeksterkenk===*=== heesustheemmessecced
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A Allinquirle8 ,. theplanshouldbedtstected - '
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