ML20073P345
| ML20073P345 | |
| Person / Time | |
|---|---|
| Site: | Callaway  |
| Issue date: | 02/14/1983 |
| From: | Cornelius W, Dougherty C UNION ELECTRIC CO. |
| To: | |
| Shared Package | |
| ML20073P316 | List: |
| References | |
| NUDOCS 8304250142 | |
| Download: ML20073P345 (38) | |
Text
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UNION ELECTRIC COMPANYANNUAL REPORT 1982
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8304250142 830418 5f PDR ADOCK 05000483 k m ow~
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. . INVESTMENT REVIEW l Dividend Reinvestment and Stock Purchase Plan Highlights The Company's Dividend Reinvestment and Earnings per Average Common Share.
Stock Purchase Plan provides common and Dividends per Common Share.
preferred stockholders, employees and customers the opportunity to purchase shares of common Operating Revenues.
stock of the Company by automatically reinvesting Operating Expenses.
dividends and/or investing optional cash payments.
Common Stockholders-Year End. !
Information regarding the Company's Dividend Dividend Reinvestment Participants.
Reinvestment and Stock Purchase Plan may be obtained by writing to: Earnings Available for Fixed Charges.
Interest and Other Fixed Charges.
l Union Electric Company Stockholder Services-Code 1035 Property and Plant (gross)-Year End P.O. Box 149 Cap;talization Provided by Investors.
St. Louis, Missouri 63166.
On the Cover:
The Callaway nuclear plant Control Room Simulator, identical in every respect to panels in the plant's control room, helps to train future plant operators for both normal conditions and unusual situations.
,, Common Stock Price Range 1981 f f' Monm J F M A M J J A S O N D
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. Year Ended Annual increase Contents
- Dccomber 31,1982 Current Year 10-Year Average 2 Letter to Stockholders S2.17 14.2 % 6.1 % 4 Business Review S1.58 3.9 2.1 12 Financial Statements 26 Management's Discussion / Analysis S1,217,705,000 10.1 12.7 28 Selected Financialinformation S1,013,054,000 9.8 13.6 30 Supplementary Data 33 Financial Position 187,000 8.2 5.9 34 Operating Statistics 51,000 73.3 14.4 36 Officers and Directors S505,259,000 21.2 18.0 l S202,180,000 11.1 15.5 S5,190,779,000 14.0 10.1 Annual Meeting S3,792,809,000 15.8 9.8 The Annual Meeting of Stockholders willconvene at 10 a.m. Tuesday, April 26,1983 at The Chase-Park Plaza Hotel,212 N. Kingshighway, St. Louis, MO.
i Service Area Union Electric and certain subsidiaries, Missouri .
Power & Lig ht Company, Missouri Edison Company and Missouri Utilities Company, are primarily engaged in supplying electric service for the strategic center of America-a 24,000 square mile area in Missouri, Illinois and towa. The Company Ccmmen Ctock Price Range 1982 is a member of one of the nation's largest power Month J F M A M J J A S O N D pooling networks. The ability to interchange bulk power provides emergency reserve power and enables each utility system to build new plant
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u capacity in the most efficient and economical sis manner.
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TO OUR STOCKHOLDERS:
The most common description of Revenue Code and, as such, is not business conditions in 1982 has been taxable as dividend income.
" recession" More importantly, however, The Company currently estimates that 1982 was the year in which inflation was the non-taxable percentage of common held to its lowest rate in a long time-a dividends will be slightly higher in 1983 fact which provides encouragement and than in 1982. Preferred dividends in solid hope for the future. 1982 and 1983, however, are to be Reflecting the general business treated as fully taxable dividend income. ,
picture, our total kilowatt-hour sales for More than 27 percent of our common the year were down fractionally (7/10 of stockholders are now participating in 1 one percent) from 1981. The 8 percent the Company's Dividend Reinvestment l decline in industrial sales was not and Stock Purchase Plan. During 1982 '
completely made up by the 2 percent the Company raised more than $39 increase in residential sales and the 5 million of new capital through the percent increase in commercial sales. Plan-which is more than double the The year did produce good news for amount raised in 1981. The Plan has stockholders. Common stock earnings become an important and economic source of new capital for the Company
..Connnon stock carnings ni as it continues to be an attractive means of investment-free of commissions and 1982 were S2. /-'per share, fees-for our stockholders. And, of which was un increase n/ '
course, the Economic Recovery Tax Act
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of 1981 which, for income tax purposes, permits a limited exclusion of reinvested utility dividends from taxable income in 1982 were $2.17 per share, which has significantly increased the was an increase of 27 cents from the popularity of the Plan.
$1.90 we recorded in 1981. The improved earnings resulted primarily . . .~
from higher electnc rates, offset ,n i part ' a linhed exclusion q[
by the increased costs of doing reinvested utih.tr dividends from business. taxable income has significantly Of enduring stockholder interest, increased the popularity of also, was the third quarter increase of 3 cer,ts per share in the common stock du, Plan. ,,
dividend, bringing the annual rate to
$1.64 per share. We continue to progress on the !
Significant, too, is the fact that 70 construction of the Callaway Plant.
percent of the $1.58 per share common However, in light of the exacting nature dividend paid in 1982 is considered a of the remaining work and the return of capital under the Internal extremely rigid quality requirements applicable to it, we announced in 2
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August that completion of that nuclear Stockholder and regulatory approval of plant has been rescheduled to late 1984 the plan will be sought.
or early 1985. A notable milestone was It apparently is easy in inflationary reached in November when the first times-such as the country has been shipment of nuclear fuel arrived and experiencing for well over a decade-to l was placed in storage in the plant's Fuel complain about utility rates And.
l Building. unfortunately. some have found that To effect significant economies the theme a convenient vehicle to notoriety.
Boards of Directors of the Company Factually. however. we believe it is and of its utility subsidianes (Missouri significant and noteworthy that surveys continue to show that Union Electric's
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e ; .. : . d. residential customers' bills regularly L,'To efect significant>econonnes,); rank among the lowest in the nation.
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~t he'Botdds o We believe that the Company's 1982
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r< , sg 5,p-e tors.Ohanglanh..WNhrgerO/D: record is one of which our gr. a - management and employee team can
, cannpunte;. p g.g i be proud-and we salute them for I producing it They are the most valuable Power & Light Company. Missouri resources for our Company's future Utilities Company. and Missouri Edison Company) have approved a plan for merger of the four companies kw ) A D ws. -;ws u" ' Charles J Dougherty Ch irman and Chief Executive Officer
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BUSINESS REVIEW Earnings and Dividends Increase Earnings on common stock of $217 per share in 1982 were 27 Cents per share above the prior year The increase in earnings reflected higher , , , , , , , , , . ,
electnc rates partiady offset by greater costs at . r,n , , , ,
doing business , , ,
Dividends were increased 3 cents per share in the +'m third quarter bnnging the annual dividend rate to ' ' ^ +
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$164 per share Dividends paid to holders of our * '
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common stock have inc_reased every vear since '
1975 Seven'y percent of the $158 per share common dividend paid in 1982 is considered a return of capital under the Internal Revenue Code and as sucn is not taxabie as div'dend income It is currentlv estimated that the non taxable percentage of common dividends in 1983 wil! be shghtly higher than in 1982 Preferred dividends in ,
- f. 'f' 1982 and 1983 are f uhy taxable dividend income y ;M,f i ; g(rM gy f-Dividend Reinvestment Plan Expands During 1982 our Dividend Re nvestment and Stock Purchase Plan was amended to include '
Union Electrtc preferred stockholders and customers Approximateiy 1800 preferred stock % n w .~,
heiders and 4 400 customers e ave enroned .n the Plan
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Participation .n the Plan increased hom 29 D 4 Y..
V stockhoiders at the end of 1981 to 51484 at the end of 1982 Furthermore the capital raised i through the Plan ir 1982 amounted to $391 muon as compared to $191 milhon in 1981 Srnce the Plan was introduced in Juty 1976 it has pro.ided the Company with more inan $114 mi!i or of equit'y capital Our Dividend Reinvestment and Stock Purchase Plan which is entirely vo!untary permits the automatic reinvestrnent of dividends on the Company s common and preferred stock in newly N issued shares of common stock at prevaihng '
market pr ces The Pian aiso prwdes for tne '
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purchase of newly issued sharea of Umon Electric common stock through optu nal cash payment > Y rang!ng from $10 to $5 000 monthly EaCh 11 purchase under the Plan is made without payment 7 of any commission or service Charge
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The Fconomic Recovery Tax Ar:t of 1981 provide <
.c. special treatment iur stocknolders participating in
^* c diudend rem sestment programs of quanfied utihties This law perm,ts elig;ble individual stoc kholders to exclude from taxabie income up to an aggregate of
$750 annually fil 500 in the case of joint returns) of dividends reinvested in common stock of quahfied pub'ic utihttes during the years 1982 through 1985 Our Plan auu hes n for tne specia!
tax treatmerit as explained 'n recent cor respon dence to stockholders Dividends and Interest Subject to Withholding T he nen f ederal tax law provides for the eith
.c ,+ holding of a porta)n of d vidurds ind ,nterest p t d g2 ggy p.,
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, by corporatiens The new la A exoressig excludes from the with ho d,nq requirements dividends reinvested under a pubhc utmtv s quahtied d<vidend reinvestment pur Thus there wdl he ni Aithnoiding on Gis!dends pwd nt< , Union [ tec inc s automatic Dividend Reir ,estment P'an nowe,er effec h se mu!y 1 1983 the Ccaripany generally required to withhoid 10 percent of other diedends pard to its
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common and preferred stockholders and of interest paio on tne Company s debt if suc h interest amounts to more than 5'50 annually t:r an
+nd!viduai recip:ent s jb Sales Constant As Heating d
I j Use Increases Total knowatt.n< ur sales +or the year were e ig h t Lv
- '7 1D of one porcent bel(TA our 1981 sale' s primardy ref;ect nq depre, sed sales to =ndustry Residentu! and r ommerc ul sales increa+d .umost
' perc ent and 4 5 perce"t respec t: sel < "oAever industrial sales dechned 8 percent
. In 1982 the eertric neating load connected to
- > the Union Electnc system reached ? 532 000 kno o n hatts Flectric heat A>as ;nstalled in 49 percent of al!
ness commercial buddings and apartments and in
',' 30 percent of rill new homes in the Company s ser s:Ce area More than 4 500 reedent'al electric nejtlpg instahat'ons were added t< 3 the Compan v s q
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hnes in 1982 and at year end over 85 000
'-tf customers heated their homes electncahy in ;l;;{;'
addition over 14 000 commercrat and industrial ,.4-p 44 str uctures used electnc heat t y J 8(
Increased use of electnc heat is important p because it enabies the Company to utihze dunng e -
the winter months facihties wh+ch have been budt b
" Q:h o JgjM y' onmanly to supp!y the high demanas for summer g
& *T ,y a'r cond:tioning , f
=. n Rate Increases Approved Wahg. _
and Pendinu m .g i
In July new e ectr.c rates were autroved bi the
, l l Missour Pubhc Ser ace Commisslor increasing -
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Company rates N more than 9 percent for .:
approomately 700 000 Mssouri customers The c rew rates shoutd add about $65 2 mi.unn to annuat revenues
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The subs:d ary compan:es aiso had severai rate requer,ts resoNed durino 1982 an'ch tn the .j L
aggregate vil: increase annual resenues about l 513 m+ior Pend:ng at vem ena hefore regulatory authorAes were Company reauests for rate increases of abuut g
$143 rnann or 16 percent in Missouri and hhnots _x Decisions on those requests are requlreo by ear!y e June in ininois and by early Noven Der '983ln @
Mssouri g A recent survey revealed that our res centJ ;C -
customers electr'c bdis rank fourth lowest amona the 25 laraest crtres in ine United States On the
- average customers 0+ large aties across the nation .*-A e.a pay 5 7312 for 1000 knowatt hours of e:ectncity N O .*
i I as compared with a b ' of $5196 for our N -
l customers wdh the same usage .ndicating that ',, . ;- . :
the St Li ms bih +s ?9 percent be ow the a;.erage 'J -
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y%:dq_ $ .gt Coal Purchased .- .g W ' QgMqn;&nn p L
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'O, in 1982 he contracted for 10 nHihon additiona! -
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Inns of 'ow Sulphur Coa! covering a penod of 10 #NW
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ye irs from I anots supphers Morenser almost ai! '
- 71 - 4J of Dur coal purcnases .n 1982 cce from Ininois #" ' +y '
m:nes By blending 60w ,u.phur content coat v'th 3 ~
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higher su!phur coai we are able to comply with w
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cu'rentiv supply 85 percent of the Company s coal y ["[% requirements
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%*, For years our electricity has been approximately p., , , ~~ .
g 94 percent wal and 6 percent hydro generated
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During the / ear 1982 the Company burned 11
%;m w U.-(fhd QE milhon tons of coa! and fuel costs amounted to C ff% h *j . $353 milhon which was about one third of our
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Union Elentric is meet.ng an air quahty require
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ments e'ther Dy comp lying with apphcable standards ih D . (( " .
or by mamng necessary mod;fications under N.
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scnedules approved by ren Jatory agencies Dur ng ATP. .4 ,, '982 construction of cua o;ending fac,hties at the 416 j' Labadie Plant was comp;eted Major improvements
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to tN existing particulate con'ro! equ pment at that
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t E @hE id T pum are under way and this work ts expected to be completed in 1984 i, (( ( In the t:ve year per od 1978 thrOugh 1982 the
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Company spent $444 muhon for environrnental
!mprosement and in the five year period 1983 1987 expects to soend another $109 m%on on projects relatina :, erw ronmenta! prctection lIlllllDVill;z OI ,elittioils
[ The Company cont nues its eficrts to mprove efficierres by utor71ng Detter operat;ng methods 4 j tra<n.ng and procedures The fonow!ng :tems are examp6 of these enceawors
, @ h- Af4.e- / ear program to rewind the or gina' generators at the Osage hydro pun' aas completed
, i dur no 1987 updating these units t. many rnore y vears of rellabie economical operat+on A nea Load Dispatchmg f acihty designed to
, mprove the operAar security and ett,ciency of
. p the Company s elec tr, cal system nas installed in 1982 " h 's h;; h r, sopr 'st cated f auhty ,s an
BUSINESS REVIEW ;
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important component of the Un!on Electnc system ,
A new Power Operations Training Center was placed in service in September 1982 to provide for the increased highly tecnnical training of power plant employees Research and Development 4 Reduces Costs The Company continues its participation in the -
Electnc Power Research inst,tute One apphcation of this research festimated to save Union Electnc !
approximately $3 mdhon annuahy in repair and replacement power costs)is the use of a radio graphic technique to detect deterioration of welds join;ng dissimilar metals a boder tubes The welds are inspected using this technique during routine overhaul shutdowns Those welds that show they are neannq fadure are repaired thereby avoiding cost!y in service failures Th+s is part,cularly important because our bo,lers at Labad.e and Rush Island our newest power plants use this type of weid Major progress was made in tne construct,on of a demonstration coa! gasificat.on plant in East , ..
Alton llhnois which is f unded Dy Allis Chalmers ., [ t! '
/ . . y ,'=-. ""t the State of Ilhnois tne Electnc Power Research # _~ $r ,. ' .
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institute and a group of electnc utihties including .
Union Electnc The plant wdl convert high-sutohur ,.
hhnois coal into environmentally acceptable low ,?..<- -
Btu gaseous fuel suitable for power plant use it is ' -F ^ ,h'(. ,,. - "7 =. .>. ..
expected that its construction wiH be completed ,[-- hy "y[. .. jr:-
and test operations initiated dunng 1983 ..g s..c 4-. .t.
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Callaway Continues As "
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Major Project More than 518 bshon has been expended to ,/ g date on our $2 85 oui.on Canaway Plant Ca!!away s ,
1 150 megawatt nucur unit is schedu!ed for ,u j',
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l service in iate 1984 or early 1985 and wil! provide about 20 oercent of our required generation Total construction expenditures in 1982 were 5628 mdhon Dncluding $185 milhon of allowance for funds used during construct!on i bringing the w, w Comoany s year end gross investment in property
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and plant to weh over 55 onlion sU ,a e,,,, , , In 1983 and 1984 the Company anticipates x ,, , , w construction expenditares of $619 mdhon and v ;o m $605 mdhon respectively and in the five-year penod 1983-1987 such expenditures are expected to aggregate $17 billion Af ter the Callaway Plant t m"M ' u- goes in service the Company s construction
prcgram wn! be substantially reduced A 21000 square foot CaHaway Training Center h, using classrooms and a Control Room Simulator is now in use see cover > The Simulator duphcates
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all of the plant instruments and control devices and provides a training enmonment for reactor operators equnaient to actua! operation of the plant f uel storage racks were dehvered to Callaway in early 1982 and instaded in the Fuel Budding which is now comp ete The first truckload of fuel arnved in mid Novemtwr By the time these dehvenes are como!eted one entire f uelloading valued at about 5100 mdhon wm be in storage in the f ue! Budding The Company has contracts for sufficient quant t es of uranium through the year 2000 and a leasing arrangement whtch provides for the financtng of up to 5200 mdhon of exoend1tures for the vanous elements <>f the nuclear f uel cycle
. includ;ng acquisit'on converston ennchment and launcation in 1982 the Company expanded its 1977 land management agreement wth tre t.1:ssoun Depa t r ment of Corwrvation ; include an additional 1300 acres of puchc use propertv adpicent to 4 000 acres surmunding the C+iaway Plant Th<s 5 300 acre tract is cahed the Reform W+idhte Managemen' Area and pubhc use inciudes nunting fishing h hng p cnding bird kitching and nature uhc)tograpny
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Securities Provide New Capital The Company S 1982 construction program was financed almt st entire!y through the issuance of approximate!y $445 mdhon of securities - a record .~
amount for Union Eiectric f v in early 1982 Ur on Electric sold $75 mdhon of preferred stock with a 16 percent annua! dividend ** -
rate In February and June the Company utihzed %F j unsecured long-term bank financing 'atalhng $100 <X million which is based on optionai interest rates ir Q '
September the Company !ssued $125 mdhon of -
15 percent 10-year first mortgage bonds and in December ut!hzed $20 muhon of debt f.nancing to prowde for additionat environmenta, improvements Also near the end of the year the Company sold 6 5 muho" "ew shares of common stock providing
$85 6 mn an of nev, cap:ta! In addition 3 2 mnhan shares c+ common stock were issued in 1982 under the Dividend Reinvestment and Stock Purchase Pian prouding $39 ruon of equity capita l 11 :s estimated that suostantiaHy all of our cash
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reau'rements for 1983 c onstructton wiii ce pro.iaed f rom outside financing Paos inc!ude $100 muiion of t,rst mortgage bonds in March $75 monon of preferred stock at mia-year 550 muhon long- term debt t,nancmg in the Fan and an addttional 6 5 muhon shares of cor" mon stot k near the end of the year Also the Company ant.cipates approxi-mately $49 mdhon tr equity capita: f rom the
.ssudnce of its commt n stocw under he o,s4de. d Re r,estment a:id Stock Purcnase Plan Area Construction 4 Encouraging di r The Company s sers tce area o"ers a number c' attrache benefits for firms seeking nev tes or bund.nq ner tactes includ:ng a skhted ;aDor force ;in excedent trdPSDoriation nethork p r0 xi rn !! y W;
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RESPONSIBILITY FOR FINANCIAL STATEMENTS The management of Union Electric Company is responsible for the information and representations contained in the financial statements and in other sections of this Annual Report. The financial statements have been prepared in accordance with generally accepted accounting principles consistently applied. Other information included in this report is consistent, where applicable, with the financial statements.
The Company maintains a system of internal accounting controls designed to provide reasonable assurance as to the integrity of the financial records and the protection of assets. Qualified personnel are selected and an organization structure is maintained that provides for appropriate functional responsibility. Written policies and procedures have been developed and are revised as necessary. The Company maintains and supports an extensive program of internal audits with eppropriate management follow up.
The financial statements h.we been examined by Price Waterhouse, independent accountants, and their report appears below.
The Board of Directors, through its Auditing Committee comprised of outside directors, is responsible for ensuring that both management and the independent accountants fulfill their respective responsibilities relative to the financial statements. Moreover, the independent accountants have full and free access to meet with the Auditing Committee, with or without management present, to discuss auditing or financial reporting matters.
REPORT OFINDEPENDENT ACCOUNTANTS
). ONE CENTERRE PLAZA ST. LOUIS. MO 63101
} (' 7aterlouse p pp_< 3'u2s-February 14,1983 To the Stockholders and Board of Directors of Union Electric Company In our opinion, the accompanying consolidated balance sheet and the related consolidated statements ,
of income, preferred stock, long-term debt, retained earnings, other paid-in capital and changes in financial position present fairly the financial position of Union Electric Company and its subsidiaries at December 31,1982 and 1981, and the results of their operations and the changes in their financial position for each of the three years in the period ended December 31,1982, in conformity with generally accepted accounting principles consistently applied. Our examinations of these statements were made in accordance with generally accepted auditing standards and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances.
l 12
CONSOLIDATED STATEMENT OFINCOME (Thousands of Dollars)
Union Electric and Subsidiaries Year 1982 Year 1981 Year 1980 Cperating Revenues (*): Electric . S1,111,855 $ 1,019,671 $ 996,893 Gas . 90,213 72,861 67,577 Steam . 13,224 11,033 11,486 Water. 2,413 1,971 1,920 Total operating revenues 1,217,705 1,105 336 1,077.876 i Cperating Expenses: Operations Fuel and purchased power. 372,632 356,887 334,428 Other . 230,751 200,506 185,071 603,383 557,393 519,499 Maintenance. 100,223 87.435 80.632 Depreciation. 86,670 81,310 78.819 income taxes. 97,967 79,381 91,925 Other taxes (*) . 124,811 117.128 115,845 Total operating expenses 1,013,054 922,647 886,720 Cperating Income 204,651 182,889 191,156 Cther income: Allowance for equity funds used during construction . 93,858 64,600 45.357 Miscellaneous, net . 3,660 (734) 3.638 Total other income 97,518 63,866 48,995 Income Before Interest cnd Other items 302,169 246,755 240,151 Int: rest and Other items: Interest on debt . 200,554 180,312 131,725 Allowance for borrowed funds used during construction . (104,235) (91,025) (46.698)
Preferred dividends of subsidiaries. 384 385 387 Total interest and other items 96,703 89,672 85,414 N;t income 205,466 157,083 154,737 Preferred Dividend Require nents of Company 39,960 29,478 29,695 Ccrnings on Common Stock S 165,506 $ 127,605 $ 125.042
(*) includes license and franchise taxes of $61,002,000, $54,664,000 and
$54.068,000 for the years 1982,1981 and 1980, respectively.
Errnings per Share of Common Stock (based on average shares outstanding) S2.17 $ 1.90 $2.10 l Dividends per Share of Common Stock S1.58 $1.52 $ 1.48 Av: rage Number of Common Shares Outstanding 76,251,024 67,179,275 59,675,995 See Notes to Financial Statements on pages 22, 23, 24 and 25.
13
7 CONSOLIDATED BALANCE SHEET (Thousands of Dollars)
December 31, December 31, Union Electric and Subsidiaries 1982 1981 Assets Property and Plant, at original cost: Electric. 63,075,484 $2,936,616 Gas. 73,551 70,002 1 Steam. 9,593 9,581 Water. 8,221 7,914 Other. 19,479 19.467 3,186,328 3,043,580 Less accumulated depreciation. 984,656 915,996 2,201,672 2,127,584 Construction work in progress:
Callaway nuclear plant. 1,809,397 1,343.886 Nuclear fuel. . .
169,553 131,491 Settlement of uranium litigation. (89,407) (76,528)
Other. 114,908 112,138 Total property and plant, net 4,206,123 3,638,571
- 1. vestments, at cost 5,605 5.871 Deferred Charges: Callaway unit 2 construction abandonment. 82,826 83,363 Unamortized bond defeasance cost. 4,470 4.652 Unamortized debt expense. 4,860 4,035 i Other. 2,292 3.820 J Total deferred charges 94,448 95.870 Current Assets: Cash . 4,555 5,333 !
Deoosits for payment of interest, and I
other deposits. 32,655 39,567 Accounts receivable-trade (less allowance for doubtful accounts of $1,622 and $1,498, at respective dates). 85,629 77,792 Unbilled revenue. 54,042 49,995 Other accounts and notes receivable. 6,622 7,709 Materials and supplies, at average cost-Fuel. 99,006 82,310 Construction and maintenance. 37,188 38,040 Prepayments and other assets. 4,924 6.219 Total current assets 324,621 306,965 Total Assets $4,630,797 $4.047,277 See Notes to Financial Statements on pages 22, 23, 24 and 25.
14
December 31, December 31, Union Electric and Subsidiaries 1982 1981 Capital and Liabilities Capitalization:
Common stock and Common stock, $5 par value, authorized
[ retained earnings 100,000,000 shares; outstanding
( 84,413.679 and 74,755,885 shares, at respective dates (excluding 42,990 shares at par value in treasury). S 422,068 $ 373,780 Other paid-in capital, principally premium on common stock (see accompanying statement). 541,222 464,450 Retained earnings (see accompanying statement). 364,771 324.547 Total common shareholders' equity 1,328,061 1,162,777 Preference stock Preference stock, $1 par value (entitled to cumulative dividends), authorized 7,500,000 shares-none outstanding Preferred stock Preferred stock not subject to mandatory redemption, including premium of $1,571 (see accompanying statement). 281,355 281,355 Preferred stock subject to mandatory redemption (see accompanying statement). 182,988 110.014 Long term debt Long-term debt (see accompanying statement). 2,005,398 1,724,236 Unamortized discount and premium on debt. (4,993) (4,309)
Total capitalization 3,792,809 3,274,073 Accumulated Deferred Taxes on Income 328,580 238,153 Accumulated Deferred Investment Tax Credits 122,217 125,290 Construction Commitments and Contingencies (Notes 8 and 9)
Current Liabilities: Current maturity of long-term debt. 2,223 31,903 Accounts payable. 117,199 73,969 Wages payable. 20,010 17,598 Callaway unit 2 cancellation charges. 45,969 52,000 Bank loans. 42,100 66,350 Commercial paper 25,000 54,000 income taxes accrued. 27,919 18,810 Other taxes accrued. 14,287 13,161 Interest accrued. 46,621 43,662 Dividends declared. 10,328 7,382 Other current liabilities. 35,535 30,926 Total current liabilities 387,191 409,761 Total Capital and Liabilities S4,630,797 $4,047,277 15 l
PREFERRED STOCK (Thousands of Dollars)
December 31, December 31, Union Electric and Subsidiaries 1982 1981 Preferred Stock not subject to mandatory redemption:
Union Electric Company Preferred stock, without par Stated value of shares outstanding, value (entitled to $100 per share- ,
cumulative dividends)- $7.44 Series-550,000 shares. S 55,000 $ 55,000 note (a) $6.40 Series-300,000 shares. 30,000 30,000
$4.56 Series-200,000 shares. 20,000 20 000 ,
$4.50 Series-213,595 shares. 21,359 21,359
$4.00 Series-150,000 shares. 15,000 15,000
$3.70 Series- 40,000 shares. 4,000 4,000
$3.50 Series-130,000 shares. 13,000 13,000 Stated value of shares outstanding,
$97.50 per share-
$8.00 Series of 1971 -425,000 shares. 41,437 41,437 Stated value of shares outstanding,
$92.25 per share-
$8.00 Series-350,000 shares . 32,288 32,288 Stated value of shares outstanding,
$25.00 per share-
$2.125 Series- 1,600,000 shares. 40,000 40,000 Total Union Electric Company 272,084 272,084 Missouri Power & Light Company Preferred stock, $100 par 4.30% Series-20.000 shares. 2,000 2,000 value (entitled to 3.90% Series-40,000 shares. 4,000 4,000 cumulative dividends),
authorized 75,000 shares Preferred stock, $25 par value (entitled to cumulative dividends), authorized 400,000 shares-none outstanding Total Missouri Power & Light Company S 6,000 $ 6,000 (a) Authorized Union Electnc Company total preferred ctock-15.000.000 shares.
(b) Authonzed Missoun Utilities Company total preferred stock-50.000 shares.
(c) To be retired by sinking fund.
(d)The Company is required to retire 80.000 shares and has an option to redeem an additional 80.000 shares, at $25 per share on November 15 of each year.
See Notes to Financial Statements on pages 22, 23, 24 and 25.
16
l December 31, December 31, Union Electric and Subsidiaries 1982 1981 Preferred Stock not subject to mandatory redemption (continued):
Missouri Utilities Company Preferred stock, $100 par value 5% Series-14,000 shares. S 1,400 $ 1,400 (entitled to cumulative 5% Series of June 1950- 1,500 shares. 150 150 dividends)-note (b) 5% Series of September 1950- 1,500 shares. 150 150 Total Missouri Utilities Company 1,700 1,700
)
Missouri Edison Company Preferred stock, $100 par value (entitled to cumulative dividends), authorized 5,000 shares-none outstandirg Total preferred stock not subject to mandatory redemption S279,784 $279,784 Preferred Stock subject to mandatory redemption:
Union Electric Company Preferred stock, without par Stated value of shares outstanding, value (entitled to $25.00 per share-cumulative dividends)- $2.72 Series-1,280,000 and 1,360,000 note (a) shares at respective dates, due to 1998-notes (c) and (d). . S 32,000 $ 34,000
$4.00 Series of 1982-3,000,000 shares due 1988 to 2007-note (c). 75,000 -
Stated value of shares outstanding,
$50.00 per share-
$4.60 Series- 1,500,000 shares due 1985 to 2004-note (c). 75,000 75,000 Total Union Electric Company 182,000 109.000 Missouri Utilities Company Preferred stock, $100 par value 5.70% Series-9,880 and 10,140 (entitled to cumulative shares at respective dates, dividends)-note (b) due to 2020-note (c). 988 1,014 Total preferred stock subject to mandatory redemption $182,988 $110,014 17
LONG-TERM DEBT (Thousands of Dollars)
December 31, December 31, Union Electric and Subsidiaries 1982 1981 Union Electric Company First mortgage bonds- 3%% Series due 1986. S 40,000 $ 40,000 note (a) 4%% Series due 1988. 35,000 35,000 4%% Series due 1990. 50,000 50,000 4%% Series due 1991. 30,000 30,000 15%% Series due 1991. 150,000 150,000 15% Series due 1992. 125,000 -
4S% Series due 1993. 30,000 30,000 4S% Series due 1995. 35,000 35,000 54% Series due 1996. 30,000 30,000 SS% Series due 1997. 40,000 40,000 7% Series due 1998. 50,000 50,000 7%% Series due 1999. 35,000 35,000 8M% Series due 1999. 40,000 40,000 9.95% Series due 1999-nots (b). 100,000 100,000 9% Series due 2000. 60,000 60,000 75% Series due 2001. 50,000 50,000 7%% Series due 2001. 50,000 50,000 8S% Series due 2001. 60,000 G0,000 8%% Series due 2004. 70,000 70,000 10S% Series due 2005. 70,000 70,000 5.80% Series due 1992 to 2005-note (c). 27,085 27,085 878 % Series due 2006. 70,000 70,000 8%% Series due 2007. 60,000 60,000 9.35% Series due 2008-note (b). 55,000 55,000 9.25-9 625% Series due 2000 to 2010-note (c). 60,000 60,000 Unsecured loans Foreign bank agreement- k note (d) Due 1984. 40,000 40,000 Domestic credit agreement-note (e) Due 1987 to 1988. 175,000 75,000 Missouri environmental improvement-Revenue notes 7M% Series due 1985. 20,000 -
10% Series due 1986. 45,000 45,000 Revenue bonds 5.60-6.20% Series due 1989 to 2004. 16,500 16,500 Nuclear fuel lease 169.260 131,427 Total Union Electric Company S1,887,845 $1,605,012 (a) At December 31.1982. substantially all of the property and plant was mortgaged under, and subject to bens of, the respective indentures pursuant to which the bonds were issued.
(b)To be retired by sinking fund-Union Electnc Company. 9.95% Senes from 1986 to 1998; 9 35% Series from 1989 to 2007' Missoun Power &
Light Company.10h% Senes to 1993; 9%% Senes to 2000.10% Senes from 1985 to 2003. Missoun Utiht:es Company 9%% Sene; to 2000. and Missouri Edison Company.11h% Senes to 1989. 9%% Senes to 2000: 8%% Senes from 1983 to 2001.
(c) Environmental improvement Senes.
(d) interest rate was 10 75% on December 31.1982 based on a 90-day London Interbank Offered Rate (LIBOR) subsequent rates w.lt vary depend ng on the Company's selection of vanous options under the agreement See Notes to Financial Statements on pages 22, 23, 24 and 25.
s 18
December 31, December 31, Union Electric and Subsidiaries 1982 1981 Missouri Power & Light Company First mortgage bonds- 3%% Series due 1984. S 7,500 $ 7,500 note (a) 4S% Series due 1992. 6,000 6.000 10%% Series due 1994 -note (b). 5,320 5.740 5%% Series due 1996. 5,000 5.000
) 5%% Series due 1997. 5,000 5,000 8% Series due 1999. 5,000 5,000 9%% Series due 2001 -note (b). 10,800 11,400 7%% Series due 2003. 7,000 7,000 10% Series due 2004 -note (b). 10,000 10.000 Total Missouri Power & Light Company 61,620 62,640 Missouri Utilities Company First mortgage bonds- 5%% Series due 1984. 1,000 1,000 note (a) 4S% Series due 1988. 3,000 3.000 5%% Series due 1991. 3,500 3,500 84% Series duc 1996. 10,000 10.000 7.95% Series due 1998. 4,000 4,000 94% Series due 2001 -note (b). 5,400 5,700 Unsecured notes 18% - 5,000 6% Due 1992-note (f). 2,030 2,135 f
Total Missoun Utihties Company 28,930 34.335 Missouri Edisca Company First mortgage bonds- 145% Series due 1986. 4,000 4.000 note (a) 16% Series due 1987. 5,500 -
11 %% Series due 1990-note (b). 3,500 3,800 5% Series due 1991. 2,000 2,000 4%% Series due 1995. 3,000 3,000 9%% Series due 2001 -note (b). 3,130 3,304 8S% Series due 2002-note (b) 5,700 6.000 Unsecured note-note (g) 21% Due 1985. 32 -
Total Missouri Edison Company 26,862 22,104 Union Colliery Company Secured note-note (g) 9% Due1999. 141 145 Long term debt S2,005,398 $1,724,236 (e)In 1982, Un<on Electnc Company entered into a six year credit agreement with certain domestic banks which perrnits the Company to borrow up to
$375 mdl.on. on which interest rates will vary depending on the Company S selection of vanous options under the agreement At December 31.1982.
$175 mailion of such domestic borrowings were outstanding at an in'erest rate of 10145%. based on the 60-day Certificate of Deposit rate (f) Notes due in equal annual installmenis to 1991.
(g) Note due in equal monthly installments (h)ln 1982. Union Electnc Company entered into a six-year tetter agreement with certain foreign banks which permits the Company to borrow up to $200 millton on which interest rates will vary depending on the Company s selection of various options under the agreement At December 31,1982. none of such foreign borrowings were outstand'rg 19
CONSOLIDATED STATEMENT OF '
RETAINED EARNINGS (Thousands of Dollars)
Union Electric and Subsidiaries Year 1982 Year 1981 Year 1980 Balance at Beginning of Period. S324,547 $298,902 $262,202 Add: Net income . 205,466 157,083 154,737 530,013 455,985 416,939 Deduct: Preferred stock dividends
- 41,433 29,451 29,668 Common stock cash dividends-$1.58,
$1.52 and $1.48 per share, a respectively. 120,203 101,735 88,105 Write-off of capital stock expense. 3,606 252 264 165,242 131,438 118.037 Calance at Close of Period (Under the mortgageindenture of Union Electric Company as amended, f ree and unrestricted retained earnings at December 31,1982 amounted to
$310,974* *) S364,771 $324,547 $298,902
- Includes dividends declared, applicable to subsequent periods.
- At December 31,1982 the aggregate retained earnings of the consolidated subsidiaries totalled $49,018,000; under the mortgage indentures of the consolidated subsidiaries, free and unrestricted retained earnings of such subsidiaries at December 31,1982, amounted to $26,527,000.
CONSOLIDATED STATEMENT OF OTHER PAID-IN CAPITAL l (Thousands of Dollars)
Uni:n Electric and Subsidiaries Year 1982 Year 1981 Year 1980
&l nce at Beginning of Period. S464,450 $414,020 $374,189 Add: Excess of sales price over par value of 6,500,000,6,500,000 and 5,500,000 shares of common stock issued in 1982,1981 and 1980, respectively. 53,137 38,058 28,243 1 Excess of sales price over par value of
! 3,157,794,1,780,268 and 1,522,384 <
l shares of common stock issued i during 1982,1981 and 1980, l respectively, for dividend reinvestment <
and stock purchase plan . 23,313 10,244 .9,520 1 Excess of sales price over par value of l 350,300 and 306,024 shares of common stock issued for tax reduction act stock ownership plan in 1981 and 1980, respectively. -
1,811 2,016 Excess of stated value over purchase j price of 80.000 shares of preferred stock redeemed in each of the years 1982,1981 and 1980. 322 317 52 l
Bal:nce at Close of Period S541,222 $464,450 $414,020 See Notes to Financial Statements on pages 22, 23. 24 and 25.
20
I CONSOLIDATED STATEMENT OF CHANGES l (IN FINANCIAL POSITION
, Thousands of Dollars) f Year 1982 Year 1981 Year 1980 Union Electric and Subsidiaries Source of Funds: From operations-Net income . S205,466 $ 157,083 $154,737 Provision for depreciation . 86,670 81,310 78,819 Provision for deferred taxes on income (net) . . .._ 90,427 71,986 42,876 Provision for deferred investment tax credits (net) . ...
(3,073) 11,816 25,918 i Allowance for all furds used during construction . (198,093) (155,625) (92,055) 181,397 166,570 210,295 From financt ng and other sources-Issue of mortgage bonds. . . . . .
130,500 154,000 115,000 issue of long-term unsecured debt. 295,032 90.000 75,000 Nuclear fuel lease. ... 37,833 32,392 58,896 issue of preferred stock. 75,000 - -
Issue of common stock. . . ..
85,638 70.558 55,743 Dividend reinvestment and stock purchase plans. ..
39,102 22,708 20,678 Settlement of uranium litigation. 12,879 13,904 62,624 s
Net decrease in v/orking capital (excluding short-term loans and current maturity of long-term debt) . .. 42,704 67,722 -
, Additional short term bank loans and commercial paper. - - 43,985 718,688 451,284 431,926 Total funds provided S900,085 $617,854 $642.221 Application of Funds: Gross plant expenditures. S628,343 $532,650 $421,275 Nuclear fuel. .. .
38,062 32,406 58,872 Allowance for all funds used during construction. . .. ... .. (198,093) (155,625) (92,055)
Union Electric dividends on preferred stock anc common stock. 161,636 131,186 117,773 Restructured long-term unsecured debt. 175,000 - 75,000 Maturity of mortgage bonds. . 36,899 894 25,894 Redemption of preferred stock. _
2,026 2,026 2,026 Reduced short-term bank loans and commercial paper. .
53,250 20,535 -
Callaway unit 2 cancellation charges-deferred . . (537) 52,000 -
Net increase in working capital 6 (excluding short-term loans and current maturity of long-term debt). - - 30,964
~ Net change in other funds. 3,499 1,782 2,472
) Total funds applied S900,085 $617,854 $642,221 Decreases (Increases)in Working Capital: Cash and deposits. S 7,690 $ 8,916 $ (37,472)
Receivables, net. (10,797) (9,421) 22,407 Fuel . .. .. ..
(16,696) 27,598 (24,801)
Other materials and supplies. 852 (2,554) (3,447)
Accounts and wages payable. 45,642 (6.657) (2,086)
Cancellation charges. (6,031) 52.000 -
Taxes accrued. . . .. .
10,235 (12,794) 8,654 Interest and dividends accrued or declared. 5,905 10,843 3,892 Other. 5,904 (209) 1,889 S 42,704 $ 67.722 $ (30,964)
See Notes to Financial Statements on pages 22, 23, 24 and 25.
21
4 NOTES To FINANCIAL STATEMENTS Union Electric and SubAldlaries Note 1-Summary of Accounting Policies Allowance for Funds Used During Construction l he Company and its utihty subsidiaries are subject to The Federal Energy Regulatory Commission Uniform regulation by the Missouri Public Service Commission. System of Accounts defines allowance for funds used Illinois Commerce Commission, Iowa State Commerce during construction (AFC), which is a non-cash item, as Commission and the Federal Energy Regulatory the net cost for the period of construction of borrowed Commission. The accounting policies of the companies funds _used for construction purposes and a reasonable are in accordance with the rate-making practices of the rate on other funds when so used.
regulatory authonties having jurisdiction and, as such, During the three years ended December 31,1982, the conform to generally accepted accounting pnnciples as Company recorded AFC at various rates, compounded applied to regulated public utilities. A description of the semi-annually. The net rates reflect the Company's policy '
Company's significant accounting policies follows. of deferring the Mcome tax effect applicable to the Principles of Consolidation borrowed funds portion of the AFC rate. The average The consohdated financial statements include the accounts of the Company and its subsidiaries, all of which
(. annual AFC rates were 11.62% (9.09% net)in 1982,11.42%
(813% net)in 1981 aM 9.75% (7.65% net)in 1980.
are wholly-owned. In the process of consolidation, all Unbilled Revenue intercompany investments and accounts and all inter- The'Coinpany records on its books the estimated company sales and profits are ehminated. amount of accrued, but unbilled, revenue and also the Property and Plant .
accrued liabihty for the related taxes.
The cost of additions to and betterments of unns of property and plant is caoitakzed. Cost includes labor, matenal, applicable taxes, pensions and certa:n other Note 2-incomo Taxes items, plus an allowance for funds used dunng Totalincome tax expense was less than the amount construction. Maintenance expenditures and renew'als of computed by multiplying the income-before-tax by the items not considered to be units of property are charged statutory Federalincome tax ratv. The reasons for this to income as incurred. When units of depreciable property difference for the years in which shown are as follows are retired, the original cost and removal cost, less (in thousands):
salvage, are charged to accumulated depreciation.
1982 1981 1980 Tax Fo nar a statement purposes, depreciation is ,a e on P
o c provided over the estimated lives of the various classes before-tax . ... $139,416 5108.078 $113.024 of depreciable property by applying composite rates on increase (Decreases) a straight-line basis. The provisions for depreciation in in tax from:
1982,1981 and 1980 were equivalent _to approximately Additionaldepreciation 6,263 3.451 1,901 2.8% of the average depreciable cost. Allowance for equ,ty funds used during income Taxes construction . (43,431)
(30.347) (21.668)
Deferred income taxes are provided for timing - Miscellaneous, net- (4,635) (3.312) (2,290) differences between book and taxable income as permitted for rate-making purposes. Investment iax credits utilized Total' S 97,613 $ 77.870 $ 90.967 are deferred and amortized over the usefullives of the properties to which they relate.
22
i income tax expense components (in thousandst During the same period, preferred stock, without par 1982 1981 1980 value, was issued and redeemed as follows: Union Electric Included in operating expenses _ Company issued 3,000,000 shares, $4.00 Series in 1982; Taxes currently payable: Union Electric Company redeemed 80,000 shares.
Federal. .S 7,943 $(3,706) $14.008 $2.72 Series in each of the years 1982,1981 and 1980; State. . 2,670 (841) 4.841 and, Missouri Utilities Company redeemed 260 shares.
Deferred taxes 5.70% Series in each of the years 1982,1981 and 1980.
(pnne fly ederal)- Preferred Stock Eventual depreciation. 17,500 14,177 12,178 Redemption Prices Current Minimum ,
l Repair allowance. - - 6,742 (Per Share)
Allowance for borrowed Union Electnc Company funds used during $6.40 Series . $101.50 $ 101.50 construction. 49,455 44,107 22,160 $4.56 Senes. 102.47 102 47 Construction $4.50 Series 110.00 110.00(a) abandonment. 21,500 14.000 -
105.625 105 625
$4 00 Series Other (pnncipally $3.70 Series. 104.75 104.75 capitalized costs). 7,288 6,553 4,838
$3.50 Series 110.00 110.00 Provisions deferred $8 00 Series. . . . 99.25 93.25 in poor years. (5,316) (6.851) (3.120) $8.00 Series of 1971. 101.50 98.50 Deferred investment tax $7.44 Series . . 105 00 101.00 credits, net . (3,073) 11.942 30,278 25.25
$2 72 Series (c). 27.75(b) 97,967 79.381 91,925 $2.125 Senes . 26 45(b) 25.25 Current provision included $4.60 Series (d). 54 60(b) 50.50 in other income. (354) (1,511) (958) $4.00 Series of 1982 (e) 29.00(b) 25.00 Total. . S97,613 $77,870 $90.967 Missoun Power & Light Company 4.30% Series 102.176 102.176 Irwestment tax credit carryforwards, unrecorded as of 3.90% Senes. 105 00 105.00 December 31,1982, amounted to approximately $79 million which may be utilized by the Company to reduce Missouri Utilities Company future income tax liabihties through 1997. 5 00% Series. . .. . 110.00 110.00 5.00% Series of June 1950. 103 50 103 50 Note 3-Capital Stock 5.00% Senes of During the three years ended December 31,1982, September 1950. 103 50 103.50 common stock, $5 par value, was issued as follows: 5.70% Series (f) . 101 50 100.00 6,500,000,6,500,000 and 5,500,000 shares were issued
( )In the event of voluntary hauidation. $105 50 in 1982,1981 and 1980, respectively. In addition, of the "" '" "
18,000,000 shares reserved for the Union Electric
- Red " " '" '" "'
opera or s Company Dividend Reinvestment and Stock Purchase (c) The Company is requ! red to retire 80.000 shares. and has an option Plan,3,157,794,1,780,268 and 1,522,384 shares were to redeem an additional 80.000 shares. at $25 per share on issued in 1982,1981 and 1980, respectively; and of the November 15 of each year 2,500,000 shares reserved for the Union Electric (d) The Company is required to redeem 75.000 shares at $50 per share n August 15 of each year, commencing in 1985.
Company Tax Reduction Act Stock Ownership Plan, "' ' " " " "
350,300 and 306,024 shares were issued in 1981 and I Sh* Ci redee n an aYd tonaN0hares.ah25 pe s are p on 1980, respectively. on February 15 of each year, enmmencing in 1988.
(f) Missoun Utaties Company is required to redeem 260 shares at $100 per share. plus accrued dividends, on June 1 of each year t
23
NOTES To FINANCIAL STATEMENTS (continued)
Union Electric and Subsidiaries Note 4-Preferred Stock Subject to Note 7-Short-Term Borrowings Mandatory Redemption Short-term borrowings of the Company and its During the five years from December 31,1982, the subsidiaries consist of bank loans (maturities not in l amounts of preferred stock to be redeemed at par or stated excess of 270 days) and commercial paper (maturities value are: $2,026,000 in 1983; $2,026,000 in 1984; generally within 30-45 days). Information regarding such
- 5,776,000 in 1985; $5,776,000 in 1986; and consolidated short-term borrowings is as follows t'5,776,000 in 1987. (in thousands except rates)
Note 5-Debt Retirement Provisions 1982 1981 G80 During the five years from December 31,1982, the Amounts outstanding amounts of debt maturities are: $2,223,000 in 1983; at year end - i
$50,728,000 in 1984; $22,711,000 in 1985; $98,844,000 " . 342,100 $66,350 $41,425 i in 1986; and $73,678,000 in 1987,(Amounts do not ha"me c al paper. S25,000 $54.000 $99.460 ;
include nuclear fuel lease payments since the timing and Composite interest '
the amounts of such payments are not currently rates at year end -
determinable-see Note 10). Bank loans. . 11.3% 13.8% 21.0 %
Debt retirement provisions contained in the mortgage Commercial bond indentures of the Company and its subsidiaries paper. 9.9% 13.6% 19.4%
require, subject to certain alternatives, the redemption Maximum aggregate annually of 1% of the principal amount (as defined) of mount outstanding ny on h end each series of bonds. In lieu of such redemptions, except aju i in one instance, the Company and i,ts subsidiaries have Average daily short-been following the practice of pledging property additions term borrowings as parmitted by the indentures. outstanding during the year-Note 6-Retirement Plans Aggregate The retirement plans covering employees of the amount . 3138,847 $136,116 $90.425 Company and its subsidiaries are financed through Weighted com-D "
irrevocable pension trusts and group annuity contracts. a 17.8%
13.7% 13.4%
The Company s policy is to fund pension costs accrued.
Costs of the retirement plans for the years 1982,1981 and The above weighted composite interest rates were 1980 were $14,279,000, $12,515,000 and $11,417,000, calculated by dividing the applicable interest expense for respectively, of which approximately 22% was charged to the year by the average daily short-term borrowings construction accounts. The aforementioned amounts shown above.
include prior service costs which are being amortized At December 31,1982, the Company and its subsid-over twenty years. iaries had bank lines of credi: aggregating $190.860,000 A companson of estimated actuarial present value of ($148,760,000 of which was unused at such date) accumulated plan benefits and plan net assets follows which make available interim financing at various rates (in millions): of interest based on prime, the London Interbank Offered At December 31 Rate (LIBOR), bank certificates of deposit, or other 1982 1981 1980 options, and in support of which the Company has Vested . . . . S197 $246 $225 unwritten agreements with its tending banks to either Nonvested . 18 4 3 maintain average compensating balances ranging from S215 $250 $228 0% to 10% of the line of credit as determined from the bank records or to pay annual fees ranging from Net assets available for benefits. 3239 $179 $172 0.25% of the unused portion of the line of credit to 0.375%
of the line of credit. These lines of credit are renewable The weighted average assumed rate of return used in annually at various dates throughout the year.
determining the actuarial present value of accumulated plan benefits was 7% for 1982 and 6% for 1981 and 1980.
24
Note 8-Construction Commitments Note 11-Supplementary income Statement The Company and its subsidiaries are engaged in a information construction program under which expenditures of 1982 1981 1980 approximately $1.7 billion are anticipated during the next five years, of which expenditures of $619,000,000 and (Thousands of Dollars) p s,
$605,000,000 are estimated to be made in 1983 and Ma ch "jge" e o 1984, respectively. Operating expenses. 6100,223 $87,435 $80.632 Other accounts (a). 5,736 4,768 4,805 Note 9-Contingencies S105,959 $92,203 $85,437 On October 9,1981, the Company cancelled con-struction of Unit No. 2 at its Callaway nuclear plant which Depreciation, depletion and unit had been scheduled to be placed in service in 1990. amortization of fixed and At December 31,1982, $50 million, representino con. intangible assets, charged d'r c y struction costs accumulated to that date plus estimated cancellation charges (ne,t of , taxes) h,as been deferred. Other accounts (a). 2,862 2,435 2,208 Regulatory agencies having lunsdiction over a substantial S89,532 $83,745 $81,027 majority of such costs have been petitioned for approval to amortize and recover in electric rates the epplicable Taxes, other than payroll and poilion of the costs. The minor portion of these costs, income taxes, charged applicable to other regulatory jurisdictions, will be similarly directly to:
petitioned for as soon as practicable. In the opinion of Operating expenses-raanagement, unrecovered costs,if any, would not be Real estate and personai property. S 51,282 $ 51,977 $ 53,128 material to the financial position of the Company.
License and franchise . 61,002 54,664 54.068 Note 10-Nuclear Fuel Lease-Capitalized Other. 1,491 1,338 1,389 The Company has entered into a lease agreement which provides for the financing of the costs of up to Other accounts. , , ,
$200,000,000 of the Company's nuclear fuel. Pursuant S123,024 $115,886 $114,027 to the terms of the lease, the Company has assigned to the lessor certain contracts for purchase of nuclear fuel. " " ha The lessor obtains through the issuance of commercial I 3 aji cb$jd t$ ng bse" tnrou c ea ng accoun paper backed by letters of credit frorn commercial banks. (b) The amounts of payroll taxes for the years 1982,1981 and 1980 or from direct loans from commercial banks, the were $11.036.000,59.149.000 and $7.260.000, respectively necessary funds to purchase the fuel and make interest (c) The amounts of royalties and advertising costs were not matenal payments when due.
The Company is unconditionally obligated to reimburse the lessor for all expenditures for nuclear f uel, interest and related costs. Obligations under this lease will become current at such time as the nuclear fuelis engaged in heat production at the Company's Callaway nuclear plant, which is scheduled for completion in late 1984 or early 1985.
The Company has capitalized the cost, including interest costs, of the leased nuclear fuel and has recorded the related lease obligation. During the years 1982,1981 and 1980, the Company capitalized related interest costs of $19,748,000, $19,753,000 and $9.518,000 based on an average interest rate of 13.4% 17.6% and 14.7%
respectively.
This report and the financial statements contained herein are submitted for the information of the stockholders of the Company and are not intended to induce, or for use in connection with, any safe or purchase of any securities of the Company, or any of its subsidiaries.
25
MANAGEMENT'S DISCUSSION AND ANALYSIS-LIQUIDITY AND CAPITAL RESOURCES ,
I Union Electric and Subsidiaries Construction expenditures are expected to aggregate The Company continues to utilize a nuclear fuellease
$1.7 billion over the next five years,1983 through 1987, providing for the financing of up to $200 million of nuclear including $619 million in 1983 and $605 million in 1984. fuel. At December 31,1982, $169 million of nuclear fuel The estimated cash requirements for this five-year had been financed under the lease.
construction program excluding amounts for allowance in 1982 the Company entered into six-year credit for funds used during construction, total approximately agreements with certain domestic and foreign banks
$1.1 billion, including $374 million for 1983 and $302 which permit the Company to borrow up to $575 million.
million for 1984. At December 31.1982, $175 million of such domestic in addition to the funds required for construction during borrowings were outstanding.
the 1983-1987 period, $270 million will be required to The Company and its subsidiaries plan to continue to retire long-term debt maturing during the period and for utilize short-term debt as interim support between long-sinking fund payments on first mortgage bonds and term financing. Consolidated average daily short-term preferred stock. See Notes 4 and 5 under Notes to borrowings outstanding during 1982 aggregated $138.8 Financial Statements. million. At December 31,1982, bank lines of credit and The Company presently anticipates that substantially all credit commitments from banks aggregated $190 million, of such cash requirements in the years 1983 and 1984 not including the six-year credit agreements mentioned will be obtained from externally generated funds. Financing above; and, at such date $42.1 million of short-term bank plans for the year 1983 include $100 million of first loans and $25 million commercial paper were outstanding mortgage bonds in March, $75 million of preferred stock (see Note 7 under Notes to Financial Statements). The at mid-year, $50 million of long-term debt financing in Company and its subsidiaries are authorized by the the Fall, and $91 million from the sale of common stock Federal Energy Regulatory Commission to incur up to near the end of the year. Approximately $49 million of $347 million of short-term unsecured indebtedness; additional equity capital also will be realized from the however, short-term debt is not expected to exceed issuance of common stock under the Dividend Reinvest- $200 million.
ment and Stock Purchase Plan. The types, amounts and The mortgage indenture of the Company requires a timing of future financings depend upon market condi- minimum level of earnings for the issuance of additional tions, regulatory actions, law, rate levels and other factors. bonds and such requirement could restrict the issuance The internal generation of cash is expected to improve of additional mortgage bonds in 1984, unless sufficient dramatically when the Callaway nuclear piant is completed rate relief is granted by regulatory authonties.
and included in rate base. The Company announced in During 1982 it was determined that a merger of Union August 1982 that the completion of this plant would be Electric's utility subsidiaries. Missouri Power & Light delayed (from early 1984) to late 1984 or early 1985, Company, Missouri Utilities Company and Missouri primarily because of greater quality assurance coupled Edison Company, with the parent company would provide with the exacting nature of the final phases of its a simplified corporate structure and overall economies.
construction. At that time it was also announced that the Subsequently, the Boards of Directors of Union Electric total cost of this project was revised from $2.1 to $2.85 and its utility subsidiaries approved plans for merger of billion. the four companies, subject to the approval of share-Funds required for the 1982 construction program holders and regulatory agencies. The plans include were provided by a record amount of financing, including proposed exchanges of $8.7 million of new Union approximately $250 million of long-term debt, $75 million Electric Company preferred stock for a like amount of of preferred stock, $39 million from 3.2 million common presently outstanding preferred stock of subsidiary shares issued dunng the year under the Dividend companies. Shareholders' approvals will be sought at Reinvestment and Stock Purchase Plan, and $86 million annual meetings in April 1983, and decisions are also from 6.5 million additional shares of common stock sold required from the Missouri Public Service Commiesion, in December. Illinois Commerce Commission and the Federal Energy At December 31,1982 there was more than $18 million Regulatory Commission.
of unused proceeds on deposit with a Trustee under For data relative to Supplementary Information on 1981 and 1982 EnvironmentalImprovement financings, Inflation and Changing Prices see pages 30 and 31.
which will be utilized to finance new pollution control facilities.
26 L
RESULTS OF OPERATIONS Union Electric and Subsidiaries Earnings and earnings per share fluctuated due to Operating Expenses conditions unique to this industry in general and this The changes in operating expenses were as follows:
company in particular: weather, inadequate rate increases, dilution from additional shares issued and Fuel and Purchased Power Variation from Prior Year unrecovered fuel cost increases. Also, the quality of such earnings has been adversely affected by the substitution 1982 1981 1980 of the allowance for funds used during construction (a Fuel (Millions of Dollars) non-cash item) for the ability to recover in cash the cost Variation in generation. S(1.4) $ (17.6) $ (6.0) of funds invested in facilities under construction. The Price increases. 14.0 31.6 20.7 impact of the more significant of these items is discussed
- Deferred fuel termination . - -
(14.0)
Efficiencies . (4.2) .8 (7.5) below. ..
Purchased and interchange Electric Operating Revenues power. 7.3 7.7 39.0 Vanation from Prior Year S15.7 $ 22.5 $ 32.2 1982 1981 1980 *Foi owing the Missouri Supreme Court decision in (Mdlions of Dollars) 1979 declanng fuel adjustment clauses unlawful in Tariffs and fuel adjustment clauses. . S 89.2 $ 48 2 $ 70.3 Missouri the Company discontinued deferring such fuel Variationsin sales-residential . 1.3 (33.8) 35.7 costs collectible under the clause.
-commercial . 11.5 5.2 16.4
-industrial. (15.4) 32 (4.8} Other Operations License and franchise taxes. 5.6 -
46 The cost of operations, other than fuel and purchased S 92.2 $ 22.8 $122.2 power, increased annually due almost entirely to, recurring cond;tions. such as growth, inflation and wage increases.
Effective May 30,198L the Missoun Commission restructured rates applicable to all classifications of Maintenance customers to increase rates June through October and . The variations in maintenance reflected normal increases pnncipally due to higher costs of repair parts decrease rates November through May. Approximately and wage increases.
$20 million was added to 1980 revenues (offset in 1981 revenues) as a result of that restructuring. In addition Depreciation significant electric rate increases were granted by the The variations in depreciation resulted from increases Missouri Public Service Commission in mid-1980 in depreciable property. No changes were made in (approximately $22 million annually), mid-1981 (approxi- depreciation rates during the periods.
mately S65 million annually) and mid-1982 (approximately Income Taxes
$65 million annually). Income taxes fluctuated in response to pretax income.
Pend.ing at year-end 1982 were requests for rate For additional details see Notes 1 and 2 under Notes to increases of about $143 million, or 16%, above current Financial Statements.
revenues. Decisions on those requests are required by early June in Illinois and by early November 1983 in Other Taxes Missouri. These increases generally reflect increased gross The unusually hot 1980 weather added about receipts taxes on greater revenues and higher payroll 533 million to normal revenues while the cooler than taxes due to increases in taxable wage bases and rates.
normal 1981 and 1982 summers reduced revenues Other items about $13 million and $16 million, respectively. from normal. The increases in interest and preferred dividends ware due to the issuance of additional securities to finance the construction program (see Management's Discussion and Analysis-Liquidity and Capital Resources).
Allowance For Funds Used During Construction (AFC)
AFC increased due to an increased amount of Construction Work in Progress and to increased AFC rates (see Note 1 to Notes to Financial Statements). The amount of AFC will continue to increase significantly and constitute a substantial portion of earnings, until such time as the Callaway nuclear plant goes into commercial operation and is included in rate base and its costs reflected in electric rates. This plant is presently scheduled for completion in late 1984 or early 1985.
27
SELECTED FINANCIAL INFORMATION (Thousands of Dollars Except Share and Per Share Amounts and Ratios)
Union Electric and Subsidiaries 1982 1981 1980 1979 Results of Operations Operating revenues. S1,217,705 $1,105,536 $1,077,876 $946,797 Operating expenses. 1,013,054 922,647 886,720 780,331 Operating income. .. 204,651 182,889 191,156 166,466 Allowance for funds used during construction (All funds prior to January 1,1977 and equity funds after December 31,1976). 93,858 64,600 45,357 31,245 Other income-miscellaneous. 3,660 (734) 3,638 879 Interest on debt and other items. . . . 200,938 180,697 132,112 107,383 Allowance for borrowed funds used during construction after December 31,1976. 104,235 91,025 46,698 26,848 Net income. ... .. 205,466 157,083 154,737 118,055 Preferred dividend requirements of Company. . 39,960 29,478 29,695 26,948 Earnings on common stock. 165,506 127,605 125,042 91,107 Common Stock Data and Ratios Earnings per share of common stock (based on average shares outstanding). . . 62.17 $ 1.90 $2.10 $1.73 Cash dividends per share of common stock. S1.58 $1.52 $ 1.48 $1.44 Average number of common shares outstanding . . 76,251,024 67,179,275 59,675,995 52,577,432 Return on average common stock equity. 13.93% 12.11% 13.11% 10.71%
Ratio of earnings to fixed charges (a). 2.50 2.29 2.85 2.61 Assets and Long-term Obligations Year-End:
Total assets. . . . _ S4,630,797 $4,047,277 $3,552,104 $3,168,998 Long-term debt obligations. . 2,000,405 1,719,927 1,479.229 1,307,990 Redeemable preferred stock. 182,988 110,014 112,040 114,066 (a) Earnings used in computing the ratio of earnings to fixed charges consist of net income plus fixed charges (interest on debt. preferred dividends of subsidianes and an appropnate amount of rentals charged to operating expenses) and income taxes.
28
1978 1977 1976 1975 1974 1973 .1972
$903,988 $765,102 _ $682,456 $583,455 $468,656 $417,949 $375,188 727,756 605,963 518,342 446,569 355,655 306,689 287,037 176,232 '159,139 164.114 136,886 113,001 111,260 88,151 15,980 8,301 12,379 23,107 13,696 10,521 13,377 2,896 1,389 (2,554) 1,403 1,154 99 578 90,699 84,015 78,529 75,361 68,065 54,713 48,651 15,489 10,721 - - - - -
119,898 95,535 95,410 86,035 59,786 67,167 53,455 23,040 20,367 19,640 19,640 15,700 15,288 11,312 96,858 75,168 75,770 66,395 44,086 51,879 42,143
$2.01 ~ $1.67 $ 1.86 $1.78 $1.37 $1.62 $1.35
$1.40 $1.36 $1.34 $1.28 $1.28 $1.28 $1.28 48,260,596 45,110,245 40,795,152 37,240,134 32,187,113 31,946,291 31,249,023 12.61% 10.68% 12.19% 11.98% 8.94% 10.72% 8.89%
-3.18 2.81 2.79 2.51 1.92 2.33 2.10
$2,800,209 $2,521,181 $2,316,039 $2.162,312 $2,030,103 $1,786,255 $ 1,642,566 1,238,860 1,189,080 1,118,418 1,021,747 939,933 830,087 773,130
~ 41,092 '41,118 41,144 41,170 41,196 - -
l l
l 29
SUPPLEMENTARY INFORMATION ON INFLATION AND CHANGING PRICES (Unaudited)
Union Electric and Subsidiaries Estimates of the effects of inflation and changing Accumulated Depreciation prices on the operations of the Company for the year The accumulated provision for depreciation for both ending December 31,1982, are presented in constant dollar and current cost was determined by accordance with the requirements of Financial applying to the adjusted amounts for each functional Accounting Standards Board (FASB) Statement class of plant, the same percentage relationship No. 33," Financial Reporting and Changing Prices." that existed betwcen gross plant and the associated Statement No. 33 requires that historical costs be accumulated provision for depreciation on an adjusted to reflect the effects that general inflation historical basis.
(constant dollar) and changes in specific prices (current cost) have had on the Company's operations. Depreciation Expense The adjusted data is not intended as a substitute for Depreciation expense for the year 1982 applicable earnings reported on an historical cost basis, but rather to constant dollar and current cost property was to give some perspective as to the approximate effects $209.555.000 and $236,590,000. respectively. The of changes in the purchasing power of the dollar. actual 1982 depreciation expense was $86.670,000.
The adjusted amounts were determined by applying Pr:perty, Plant and Equipment to the indexed property and plant values the same The estimated value in average 1982 dollars of straight-line book rates used for historical purposes.
property, plant and equipment, including construction work in progress. was determined by applying the Reduction of Property, Plant and Consumer Price Index for All Urban Consumers to the Equipment to Net Recoverable Cost historical cost of plant. The current cost estimates were The regulatory process limits the Company to the primarily measured by applying the Handy-Whitman recovery of the historical cost of property and plant "Index of Public Utility Construction Cost" to each major through depreciation. Therefore, any excess of property class of plant. Current cost approximates the cost of and plant in constant dollars or current cost must be currently replacing existing plant. The adjusted plant reduced to the net recoverable cost, which is historical data under either the constant dollar or current cost cost. While the rate-making process does not reflect methods does not indicate the Company's future capital the current cost of replacing utility plant, past practice requirements because actual replacement of existing indicates the Company will be allowed to earn on and to plant will occur over many years and will not identically recover the increased cost of its net investment after replace existing plant. these facilities are replaced. The excess of constant At December 31,1982, the constant dollar and dollar and current cost over historical cost property current cost of property. plant and equipment, net of and plant in 1982 was $22.819.000 and $28,376,000, accumulated depreciation were $7.967.385,000 and respectively.
$8.864,447,000 respectively, while historical or net Ga.in kom Dech.ne in Purchasing Power of recoverable cost was $4.206,123.000. The current cost and constant dollar values differ because specific Net Amounts Owed prices of plant have increased at a rate different from The Company, by having assets such as receivables, that of generalinflation. fuel and materials inventory and deferred charges, suffers a loss of purchasing power during periods of l
C:nsolidated Statement of income Adjusted for Changing Prices )
Fzr the Year Ended December 31,1982 Constant Dollar Current Cost (In Thousands of Average 1982 Dollars) '
Earnings on common stock, as reported . $ 165.506 $ 165.506 1 Additional depreciation expense . (122.885) (149.920)
Earnings on common stock.
as adjusted (excluding reduction to net recoverable cost). 42,621* 15.586 Loss from reducing plant to net recoverable cost. (22.819) (28.376)
Relative price changes. l 32.592**
Gain from decline in purchasing power of net amounts owed. 83.769 83 769 Net change in common shareholders' equity 5 103.571 $ 103.571
- Earnings on common stock on a constant dollar basis would have been $19.802.000 if it reffected the reduction to net recoverable cost of
$22 819.000
" Represents the excess of specific pnce changes ($351.201.000)in 1982 over the increase for 1982 in general pnces of propeny and plant
($318 609 000) 30
inflation because after conversion, the cash received Also, because Federal income tax policy prohibits for these items will purchase less. More than offsetting the deduction of inflation-adjusted depreciation these assets, however, are significant amounts of expense for income taxes. the Company's 1982 long-term debt, refundable preferred stock, deferred effective income tax rate was about 53 percent for income taxes and current liabilities which will be repaid constant dollar and 62 percent under current cost, each with dollars of reduced purchasing power. Thus, for of which is greater than the Federal statutory rate of 1982, the Company experienced a net " gain" of 46 percent. Failure of regulatory and taxing authorities
$83,769,000 from having an excess of monetary to allow depreciation of the cu rrent cost of plant severely liabilities over monetary assets. (Investments and limits the amount of funds that are generated internally unamortized investment tax credits were considered as for use in replacing or modernizing aging and obsolete nonmonetary items: nonrefundable preferred stock assets.
was included in shareholders' equity). Rates authorized by regulatory agencies must be sufficient to permit the replacing of plant and equipment General when necessary as well as preserve the purchasing Pursuant to Statement No. 33, depreciation expense power of common equity capital. To have retained the was the only income statement item that was adjusted. same purchasing power as they had in 1978, the For rate-making purposes, the amount of Company's common shareholders should have depreciation expense included in the Company's received 1982 common dividends of $2.07 per share a" owed revenues is based on historical or original cost- as compared with the actual $1.58 and the realized 1he Company's inabili returns on common equity should have been sufficient of inflation and chang ty to reflect ing onces resultedcurrently in 1982 the effects to permit the common stock to sell at $19 per share reported earnings of $165,506,000 or $2.17 per share or almost 40 percent higher than the actual year-end rather than the more realistic earnings of $42,621,000 price.
or 56C per share on a constant dollar basis, or
$15,586,000 or 20C per share on a current cost basis.
Fiva Year Comparison of Selected Supplementary Financial Data Years Ended December 31, Adjusted for Effects of Changing Prices 1982 1981 1980 1979 1978 (in Thousands of Average 1982 Dollars Except Per Share and "As Reported" Amounts)
Cperating revenues:
As reported. . $1,217,705 $1,105.536 $1,077,876 $ 946,797 $ 903,988 Adjusted for generalinflation. 1,217,705 1.173,000 1,263,000 1.259,000 1,337,000 Earnings (loss) on common stock
(;xcluding reduction to net recoverable cost):
As reported. .. .. $165,506 $127.605 $125,042 $91,107 Adjusted for generalinflation. 42,621 15,749 36,008 19,601 Based on current cost. ..
15,586 (10,140) 7,467 (17,195)
Carnings (loss) per share of common stock
(:xcluding reduction to not recoverable cost):
As reported. ..... $2.17 $1.90 $2,10 $1.73 Adjusted for generat inflation. .56 .23 .60 .37 Based on current cost. .20 (.15) .13 (.33)
Shareholders' equity (net assets), at year end:
Historical cost (as reported). $1,609.416 $1,444,132 S1,324,904 $1,211,730 Adjusted for both generalinflation and current cost. .
1,591,252 1,483,120 1 482.313 1,523,756 Excess (deficiency) of general price changes ever increase in the specific level of prices . $(32,592) $(14,167) $133.309 $219.028 Cain from decline in purchasing power of not amounts owed. .. $83,769 $172.865 $228.025 $243,751 C:sh dividends declared per common share:
Actual. . .. .. $1.58 $1.52 $ 1.48 $ 1.44 $ 1.40 i Adjusted for general inflation. 1.58 1.61 1.73 1.91 2.07
! Carket price per share, at year end:
Actual. . . $13% $10?8 $107a $12 $13%
Adjusted for generalinflation. 13% 11% 12M 15% 19 l
Average consumer price index . 289.1 272.4 246.8 217.4 195.4 31
SUPPLEMENTARY SELECTED l QUARTERLYINFORMATION Union Electric and Subsidiaries Earnings Per Average Earnings Share of on Common Operating Operating Net Common Stock Quarter Ended Revenues income income Stock Outstanding (Thousands of Dollars) (Dollars)
M:rch 31,1982. S292,033 S33,851 S32,233 S23,211 S0.31 March 31,1981. 240,450 28,198 19,432 12,056 0.18 June 30,1982. 274,533 45,371 44,035 33,713 0.45 June 30,1981. 258,206 42,916 33,314 25,938 0.39 September 30,1982. 373,706 86,860 87,723 77,402 1.01 September 30,1981. 343,048 79,192 71,754 64,378 0.96 December 31,1982. 277,433 38,569 41,475 31,180 0.40 December 31,1981. 263,832 32,583 32,583 25,233 0.37 UII:n Electric Company (1) 122 Price Range (2) 1982 1981 Price Range (2) 1981 ,
High Low Dividends (3) Quarter Ended: High Low Dividends S11% S10% 380 . March 31. $114 $10 38C 12% 10% 38 . June 30. . . . . 114 10% 38 13% 11% 41 . September 30. 11% 10 38 14% 12% 41 . December 31. 11% 95 38 (1) At December 31,1982. Union Electric Company common stock shareholders totalled 187,465.
(2) Based on transactions recorded on the New York Stock Exchange.
(3) Restriction on the payment of common stock dividends at December 31.1982. Consohdated Retained Earnings amounted to $364,771.000 as of December 31.1982, however. under the mortgage indenture of Union Electric Company. as amended 553.797,000 of such retarned earnings was restncted against payment of common dividends-except those payable in common stock.
l CONSTRUCTION FORECAST (Thousands of Dollars)
Uni n Electric and Subsidiaries 1983 1984 1985 1986 1987 C:cstruction Expenditures: I Callaway nuclear plant. S 491,100 $ 492,300 $ 57,200 $ -
All other facilties. 128,000 112,700 130,100 143,200 139,500 Total $ 619,100 $ 605,000 $187,300 $143,200 $139,500 l
l 32
FINANCIAL POSITION (Thousands of Dollars Except Share and Per Share Amounts and Ratios)
Union Electric and Subsidiaries December 31, 1982 1981 1980 1979 1978 Assets Properties (at original cost). S5,190,779 $4,554,567 $4,051,124 $3,649,728 $3,266,522 Less accumulated depreciation. 984,656 915,996 848,826 786,147 725,448 4,206,123 3,638,571 3,202,298 2,863,581 2,541,074 Receivables, net. 146,293 135,496 126,075 148,482 116,938 i Fuel supplies. 99,006 82,310 109,908 85,107 69,198 Other assets. 179,375 190,900 113,823 71,828 72,999 Total Assets S4,630,797 $4,047,277 $3,552,104 $3,168,998 $2,800,209 Capital and Liabilities Capitalization:
Common stock and retained earnings-Common stock. S 422,068 $ 373,780 $ 330,627 $ 293,984 $ 259,546 Other paid-in capital. 541,222 464,450 414,020 374,189 328,573 Retained earnings. 364,771 324,547 298.902 262.202 247,901 Common equity. 1,328,061 1,162,777 1,043,549 930,375 836,020 Preferred stock not subject to mandatory redemption. 281,355 281,355 281,355 281.355 281,355 Preferred stock subject to mandatory redemption . 182,988 110,014 112,040 114,066 41,092 Long-term debt obligations. 2,000,405 1,719,927 1,479,229 1,307.990 1,238,860 Total capitalization 3,792,809 3,274,073 2.916,173 2,633,786 2,397,327 Accumulated deferred taxes on income. 328,580 238,153 166,167 123.291 95,507 Accumulated deferred investment tax credits. 122,217 125,290 113,474 87,556 55,647 Accounts and wages payable. 137,209 91,567 98,224 100,310 92,321 Short-term debt including current maturities. 69,323 152,253 141,895 122,909 34,692 Other liabilities. 180,659 165,941 116,171 101,146 124,715 Total Capital and Liabilities S4,630,797 $4,047,277 $3,552,104 $3,168,998 $2,800,209 Common Stock Data Number of shares outstanding. 84,413,679 74,755,885 66,125.317 58,796,909 51,909,270 Book value (common equity) per share . S15.73 $15.55 $15.78 $15.82 $16.11 Capitalization Ratios Common equity. 35.0% 35.5% 35.8% 35.3% 34.9%
Preferred stock not subject to mandatory redemption. 7.4 8.6 9.7 10.7 11.7 Preferred stock subject to mandatory redemption . 4.8 3.4 3.8 4.3 1.7 Long-term debt. 52.8 52.5 50.7 49.7 51.7 Total 100.0% 100.0% 100.0% 100.0% 100.0%
33
OPERATING STATISTICS Union Electric and Subsidiaries 1982 1981 1980 1979 Electric Operating Revenues (000):
Residential. S 426,213 $ 389,182 $402,160 $333,251 Commercial. 363,826 321,400 306,486 265,278 Industrial. 257,320 250,842 233,854 221,617 Other electric utilities. 42,650 39,789 35,619 34,185 Miscellaneous. 21,846 18,458 18,774 20,388 Total S1,111,855 $1,019,671 $996,893 $874,719 Kilowatt Hour Sales (000,000):
Residential. . 7,906 7,756 8,446 7,546 Commercial. 7,339 7,024 6,913 6,463 Industrial. .. 7,130 7,767 7,616 7,858 Other electric utilities. 1,412 1,420 1,435 1,341 Miscellaneous. 310 312 385 481 Total 24,097 24,279 24.795 23,689 Electric Customers (End of year):
Residential. 869,844 870,066 862,406 853,908 Commercial. 109,947 108,561 106,428 101,355 Industrial. 5,132 5,207 5,328 5,334 Electric utilities. 24 24 24 24 Other. 3,234 3,065 2,950 2,917 Total 988,181 986,923 977,136 963,538 Re:Idential Customer Data (Average):
Kilowatt hours used. 9,108 8.955 9,848 8,893 Annual electric bill. _ S490.96 $449.35 $468.92 $392.74 Revenue per kilowatt hour. 5.399 5.02c 4.76C 4.42C Cyrtem Gross Instantaneous Peak Demand (Kilowatts). 6,161,000 6,296.000 6,404,000 5,846,000 Cy tem Capability at Time of Paak, including Net of Firm Pzrchase and Sale of Capacity (Kilowatts). 7,631,000 7,444,000 7,468,000 7,739,000 Generating Capability ct Time of Peak (Kilowatts). 6,951,000 6,879,000 6,824,000 6.947,000 Cyrtem Net Integrated Hour Peak Demand (Kilowatts). 5,897,000 6,014,000 6,107.000 5,609,000 Load Factor (Net Integrated Hour). 50.3% 49.7% 50.1% 52.4%
Coal Burned (Tons). 11,085,000 11,316,000 11,730.000 12.037,000 Prica per Ton of Coal. S30.45 $29.15 $26.85 $26.02 l
34
1978 1977 1976 1975 1974 1973 1972
$331,128 $283,124 $248,784 $220,174 $171,381 $159,813 $ 143,479 253,279 219,806 195,568 162,079 129.351 116.040 104,884 209,440 169,834 154,539 127,939 107,471 95,210 85,819 31,565 24,040 21,432 19,812 23,814 18.057 15,061 19,061 16,232 14,677 12,973 11,027 10.041 8,363
$844,473 $713,036 $635,000 $542,977 $443,044 $399,161 $357,606 7,670 7,389 6,625 6,807 5,898 6,058 5,772 6.332 6,331 5,823 5,554 5,249 5,281 5,105 7,738 7,656 7.221 6,855 6,845 6,841 6,598 1,317 1,263 1,171 1,222 1,780 1,643 1,450 460 442 519 506 474 466 425 23,517 23,081 21,359 20,944 20,246 20,289 19,350 845,074 832,251 821,564 810,702 764,363 756,489 747,018 99,751 99,105 95,248 93,848 81,477 80,703 81.263 5,348 5,225 5,459 5,368 5,303 5,254 5,266 24 24 24 25 23 22 20 2,753 2,312 1,472 1,350 1,195 1,154 1,134 952,950 938,917 923,767 911,293 852,361 843,622 834,701 9,167 8,956 8.114 8,459 7,756 8,067 7,800
$395.74 $343.16 $304.71 $273.62 $225.37 $212.83 $193.90 4,32C 3.83C 3.76C 3.23C 2.91 C 2.64C 2.49C 5,813,000 5,837,000 5,582,000 5,363,000 5,318,000 5,138,000 4,944,000 6,873,000 6,891,000 6.913,000 6,474,000 6.660,000 6,963.000 5,663,000 6,718,000 6,607,000 6,439,000 5,962,000 6,080,000 6,080,000 4,837,000 5,528,000 5.525,000 5,284,000 5,081,000 5,007,000 4,887,000 4,625,000 52.7% 51.8% 50.2% 51.2% 501% 51.4% 51.4%
11,866,000 11,915,000 11,069,000 10.089,000 8,574,000 8,419.000 7.322,000
$24.15 $ 17.86 $ 15.04 $ 13.12 $ 10.23 $7.97 $7.47 35
OFFICERS AND DIRECTORS Officers Board of Directors Charles J. Dougherty J. A. Baer ll Chairman and Chief Executive Officer Management-Business Consultant; Former Chairman and Chief Executive Officer-Stix, William E. Cornelius Baer & Fuller.
President
- W. L. Behan, Jr.
Earl K. Dille Chairman of the Board and Executive Vice President Chief Executive Officer-Hill-Behan Lumber Company, wholesaler &
Stewart W. Smith, Jr. retailer of lumber and allied building Executive Yce President products.
H. Clyde Allen Sam B. Cook Mce President-Research Chairman-Central Bancompany and its and Development subsidiary. Central Bank. which conducts a general banking business.
Mce President and Controller
- William E. Cornelius President G. J. Haven Vice President-Transmission
- Earl K. Dille and Distnbutton Executive Vice President Robert O. Piening
- Charles J. Dougherty Vice President-Rates Chairman and Chief Executive Officer William A. Sanford *Edwin S. Jones Mce President-Industnal Relations **Former Chairman of the Board-Centerre Bancorporation.
Donald F. Schnell Mce President-Nuclear
- Richard A. Meyer
- Retired. former President-Edgar J. Telthorst Anheuser-Busch. Inc.
Mce President-Power Operat6cns John K. Riedy Merle T. Welshans Chairman of the Board and Mce President-Finance Chief Executive Officer-\NTERCO. a H. E. Wuertenbaecher, Jr. manufacturer and retailer of consumer products and services Vice President-Customer Service
' Stewart W. Smith. Jr.
William E Jaudes Executive Mce President General Counsel
- Howard L. Young C. W. Mueller Former President and Chairman -
Treasurer Amencan Zinc Company.
James C. Thompson Secretary Advisers to the Board Isaac B. Grainger Former President- Chemucal Bank J. W. McAfee Former Chairman of the Boaro
- Member of Executive Committee
- Member of Auditing Committee 36
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