ML20087M202
| ML20087M202 | |
| Person / Time | |
|---|---|
| Site: | Clinton  |
| Issue date: | 12/31/1983 |
| From: | Kelley W ILLINOIS POWER CO. |
| To: | |
| Shared Package | |
| ML20087M198 | List: |
| References | |
| NUDOCS 8403290098 | |
| Download: ML20087M202 (38) | |
Text
Our Annual Report for 1983 ILLINOIS POWER COMPANY N
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A lilinois Power Compony Annuol Report 1983 tLLINOIS POWER COMPANY lilinois Power Company is a public utility engaged primonly in the generation, transmission, distnbution and sole of electric energy and the distnbution and so!e of natural gas in the State of lilinois.
Principal Office Monticello, Illinois 61856 Executive Office 500 South 27th Street, Decatur, Illinois 62525 Phone (217) 424-6600 Transfer Agent and Registrar Continental Illinois National Bank and Trust Companyof Chicago 231 South LoSolle Street, Chicago, Illinois 60693 g
Stockholder Records and Dividend Disbur.ing Office Shoret. older Services Section nianois Power Company 500 South 27th Street Decotu,lilinois 62525 (217)424 4609 Annual Stockholders' Meeting The annual stockholders' meeting will be held April 19,1984,of the executive office of the Company at 10 AM. Proxies for this meeting will be requested by the Board of Directors. A proxy statement will be mailed to stockholders about March 15,1984.
This report or.d the financial statements con-toined herein are submitted for the general information of the stockholders of the Com-pony as such and are not intended to induce, or to be used in connection with, any sole or purchase of securities.
1983 Illinois Power Company Annual Report Table of Contents page page Highlights of 1983.
2 Company Officers...
13 Letter to Stockholders.
3 Board of Directors....
13 Earnings and Revenues.
6 Management's Discussion and Analysis Electric Sales.
7 of Financial Condition and Results Gas Sales..
8 of Operations 14 Customer Services.
8 Financial Statements..
17 Clinton Power Station.
9 Two-Year Dividends and Stock Prices Other Construction 11 by Quarters 30 Financing.
11 Selected Financial Data 30 Cost Control Measures.
11 Supplementary information to Disclose Environmental Activities..
12 the Effects of Changing Prices......
31 Research and Development 12 Operating Statistics...
33 Responsibility for Information....
13 The Board and Officers.
35 Sixty Years of Service Although our company roots, like those of many families in Illinois, go back to the time of Lincoln. the utility known today as lilinois Power Company emerged as a corporation in 1923. Sixty years ago.
It was formed when 37 small utilities were consolidated and became Illi-nois Power and Light Corporation, known for many years as IP&L. It operated in Illinois, Iowa, Kansas, and Nebraska as part of a large network of utilities under North American Light and Power Company. Illinois Power and Light Corporation became Illinois-lowa Power Company in 1937. Allen Van Wyck an attorney, became a director and vice president in 1933 and president in 1940. In 1942 he resigned as president of North American Light and Power Company to devote full time to the presidency ofIP&L. In 1943, when the Iowa properties were sold, the company for-mally became Illinois Power Company.
On our way to becoming today's electric and gas utility serving about one and a half million people in more than 300 communities and much of the farm land between them, we have operated street cars and trains, facilitated rail traffic over the McKinley Bridge into St. Louis, and sold ice door-to-door. Water service and steam heat also were among our early endeavors.
Glimpses of some of these long-ago services are included in this report of our operations and activities in 1983, our sixtieth year.
The Front Cover This was our gas plant on Wood Street in Decatur in the 1920s, when the electricity we generated was used mainly to power street cars and electric trains.
The Back Cover This " hot line crew" kept the electric trains in power in 1925.
1
Highlights
% increase 1983 1982 (Decrease)
(Thousands of Dollars except per shcro amounts and statistics)
Tntal operating revenues.
$ 1,278,259
$ 1,106.775 15.5 Elect.ic.
$ 790,588
$ 685.544 15.3 Gas.
$ 487,671 S 421.231 15.8 Total operating expenses and taxes.
$ 1,067,459
$ 946.851 12.7 Net income.
$ 207,736 S 156.395 32.8 Average number of common shores outstond;ng (thousands).
48,474 44.840 8.1 Total earnings per common share 3.80 3.04 25.0 Earnings distributed as dividends dectored per common share 2.52 S
2.48 1.6 Construction expenditures
$ 359,681
$ 412.884 (12.9)
Sales Kilowatt-hour (thousands).
14,810,856 13.977,699 6.0 Therm (thousands).
867,726 1.007,780 (13.9)
CASH EARNINGS VS. TOTAL EARNINGS PER SHARE 1973
$2.06
$2.51 1974
$1.78
$2.26 1975
$2.30
$2.71 1976
'S1.90
$2.41 1977
$1.78 '
$2.68 1978
$1.55 :
$2.74 1979
- $1.32
$2.70 1980
$1.31
$2.87 1981
$1.22
$2.84 1982
$1.29 -
$3.04 1983
$2.02 -
$3.80 Total Bar Represents Total Earnings:
(Cosh Component:
Non-Cash Component 2
To Our Stockholders:
technology to meet them, make the need to identify and plan for change now even greater than when we saw that the automobile was going to knock us out of The figures on the opposite page show the financial the streetcar business.
highlights of 1983 compared with the year before-We are planning our Company's future on a system-Detailed figures, with explanatory notes, are presented ofic, step-by-step basis. Through a management task in the lost section of this annual report. Reports of our force, with the guidance of our Board of Directors, we operationsof theyear-sales. revenues, earnings.finon-are looking both inward and outward-inward at on cing, construction, etc., - clong with the major factors analysis of all the strengths and weaknesses that make offecting them, are presented in the section following us what we are os a company and at what changes
- this letter.
will make us the kind of company we must become; l Our relatively good earnings of $3.80 per share of outwardly ot our morkets and what they moy become.
- common stock in 1983 were a big factor in enabling us We are alert to developments leading to new sources to increase our common stock dividend on December and uses of energy. We look ahead to changing with 7 from 62 cents a share per quarter to 66 cents - on changing times.
annual rate of $2.64 per shore.
Though we are certain of change, we are equally However, the figures also show that only $2.02 of our certain that the fundamental principles and values earnings came to us as cash earnings, which have that have guided our Company thromh o!I these years been in a slump for ten years. For continued financial will not change.
strength, our cash earnings must be improved, and We are and will remain a utility supplying energy-that is one of our most urgent and immediate objec-related services to customers founded on these values:
8'
-To provide service at a competitive price in a safe, Perhaps the most important of our present activities reliable, and courteous manner to our customers.
is completion of the Clinton power station. With the lifting of all stop work orders and the resumption of all
-To maintain financial strength while boloncing the terests of customers, employees, and inves-in construction work,1983 was a year of encouraging O'8' accomplishment in this massive construction project.
While we are concentrating our efforts on the expe-o maintain an organizational climate where honesty,n communication and excellence in i
ditious completion of Clinton, consistent with the high-test stondords of nuclear safety, we are keeping a close performance provide the competitive edge.
watch on the negative political and regulatory im-
-To advance the economic health of our service pacts on nuclear projects in other ports of the country, territory.
The reports that follow do not include on account of
-To conduct our business in a manner that pro-on important activity offecting our future. This is the motes integrity and social responsibility.
inauguration of our formal strategic planning program This set of values has served our Companywell. As we which will he!p determine the kind of company we will continue with the completion of a large nuclear con-become during the rest of this century.
struction project and as we prepare for the next sixty filinois Power Company was born, so to speak, sixty years of opportunities, these values will remain our fun-years ago. On our cover and included in the opero-domental philosophy.
tional section of this report are nostalgic photos that give glimpses of the great changes that we have made in the nature and volume of our services during Sincerely yours, these years. In the beginning, for example, we gener-oted electricity mainly to power urbon and interurban l streetcars a nd trains. We got the idea that we could sell lsprplus capacity to light homes and businesses and lto power machinery. Long before household refrig-erotion, we sold ice door-to-door in horse-drown Wendell J. Kelley wagons.
Chairman and President We believe that the needs and expectations of our customers in the next decade, along with advanced February 22,1984 3
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~ 7.j 0A WHERE OUR DOLLA Earnings and Revenues 1923 Earnings per common share were S3.80 in 1983.
T his is an increase of 25 percent over the 1982 carn-ings of 53.04 per common share.
Operating resenues were S t.3 billion, an increase of 15.5 percent oser 19S2. Electric resenues increased ELECTRIC LIGHT & POWE 448 15.3 percent and gas resenues increased 15.8 percent in 1983.
Our 1983 earnings per common share are at a record level; howeser, this is not true for the cash portion of earnings. The allowance for funds used during construction ( A FU DC), the "non-cash" com-GAS *10(
ponent, was 51.78 and the " cash" component was S2.02. Whi!c 1983 earnings reHect considerable improsement in the" cash" component oser recent INTERURDAN 24f years, they are not yet back to the lesels of the
" cash" component of our earnings in 1973. (See Earnings Chart on page 2.)
Sescral factors contributed to the 1983 carnings CITYLINES 19t DC M
level.
We were granted increases in electric and cas rates i
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of 10.3 percent and 7.2 percent, respectisely,' effective
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"Wyf.ig' " "M?8 in January,19h3. Included in this order from the lilinois Commerce Commission was approsal to in-
'.. ~ n clude a total of $625 million of construction work in progress (CWIP) in our electric rate base. In J uly, the Commission concluded four months of rehearing on the CWIP portion of the increase and ordered that CWIP in rate base should remain at S625 mil-
=
lion.
An increase in kilowatt-hour sales also increased earnings. Ilowever, earnings per common share also
.-b reflect a decrease in gas therm sales, a decrease in electric interchange sales, and the capital costs asso-
.,p. !b'.ii ciated with the financing requirements of our on-
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going construction program.
Electric revenues increased to S791 million, reflect-ing the rate increase, an increase in kilowatt-hour sales, and the recosery of higher fuel costs. Gas resenues were 5488 million, reflecting a decrease in therm sales, the recoscry of higher gas costs and the OPERATIOu
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ur tl year we resised our adjustments for cost of purchased gas in compliance with a uniform, statewide system adopted by the Illinois Commerce Commission.
In December, we asked the Federal Energy Regu-latory Commission (FERC) to approve an electric DEPRECIATION
- 7t rate increase of 17.2 percent, effectise January 1 1984, to our wholesale municipal customers that taxes *4e generate a portion of their electric requirements. Our customers have agreed to that increase, and the
. COST or MONEY 22t FERr decision is pending. Farmer City, Illinois, will (INTEREST & DIVIDENDS)
RETAINED EARNINGS
- 44 1923 WHERE I I
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$AME FROM become a wholesale customer w hen interconnection 1983 racilities are completed in 1984.
The Mt. Carmel(Illinois) Public Utility, with I
which we proposed in 1981 to merge, became an Illi-nois Power Company wholesale customer and closed its power plant. In January, we appealed the Illinois Commerce Commission's order denying our pro-posed merger, but in December the Circuit Court of Wabash County upheld the Commission's decision.
ELECTRIC 62e in January,1984 we appealed the Circuit Court's decision to the Fifth District Appellate Court.
Electric Sales f
Unusually hot summer weather and economic im-provement among our industrial customers contrib-uted to a 6 percent increase in kilowatt-hour sales of electricity in 1983, compared to a 1.7 percent GAS 384 decrease the previous year. Sales in 1983 to residen-tial, commercial, and industrial customers increased 8.1 percent 3.9 percent, and 4 percent, respectively.
Net interchange sales of electricity decreased $1I
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million, reflecting both a weakened market for such yt.N,,.._.
opportunity sales to other utilities and the use of our
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generating units to meet our own customers'in-creased demand during the summer.
Ilourly demand on our electric system reached a new peak of 3,296,670 kilowatts on August 19, which included service to interruptible customers. This is 8.9 percent higher than the 1982 system demand of 3.028,000 kilowatts and 4.2 percent higher than the historic peak system demand of 3.164,940 kilowatts set in 1981.
A new record for use of c!cctrical energy in a s!E?:.
..s 24-hour period was established on July 22. The
'. 0#r 64.657,900 kilowatt-hours used that day exceeds the previous record by 3.7 percent.
These record peak demands for electricity con-tributed to the annual use of 7.4 million tons of coal in our power plants. Coal is our primary fuel and was used to generate 98.8 percent of the electricity OPERATION 8e.
we produced in 1983. Illinois mines provided 84 per-MAINTENANCE 584_
cent of our coal. The llavana and Wood River power stations, which have units that are subject to more strict emission regulations, burned low-sulfur l
coal from out of state.
I.ong-term contracts, with expiration options, will l DEPRECIATION St provide about 108 million tons of coal,97.2 percent of which will come from Illinois mines. Based on 1983 usage, this is enough to meet our needs for
,33, about 15 years.
Uranium purchased from Quivira Mining Com-
! COST Or MONEY 14e pany will fuel the Clinton power station through the i
INTEREST : DIVIDENDS) late 1990s. Enrichment contracts with the Depart-(ETAINED EARNINGS St.
I 1983 VENT 7
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ment of Energy coser our requirements through the Electric Resenues year 2012. A fabrication contract with General Elec-
. (MILLIONS OF DOLLARS) -
tric Company will satisfy our currently projected requirements through the year 2002, based on our soo schedule for loading fuel.
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Gas Sales y
700 Therm sales decreased 13.9 percent in 1983, com-14J
- 680 pared to a 5.8 percent increase the previous year.
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$
- 640 Therm sales in 1983 to residential, commercial, and industrial customers decreased 13.4 percent,13.4
" O 2 ! 620 -
$ 3 h oo M
percent, and 14.7 percent, respectively.
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The most gas sold on a single day in 1983 was 834.819.000 cubic feet on December 24. This is 2.6 3,,
percent below the historic peak sales in 1982.
t J H H b i 3
4 n aaa, The pnmary lactors affecting the dechne m therm g 9 g { '"
sales were the mild 1982-83 winter weather and the
- a g g y [ su impact of two large industrial customers who began a
purchasing gas directly from the gas producers dur-3 g g g g [ 4" ing the fall of 1983. Under this new purchasing ar-rangement, referred to as " gas whechng, these cus-
, yy g g g g ; '460 440.
d U d I h 3 '42o l
tomers are charged for the transportation of gas 9 8 3 6 3 h ! eo -
through our system to their facilities. Our charge for 4
gas wheeling prosides us with earnings that are com-F Xu31hU$!o 3
parable to those obtained from making direct gas
~1 M M B H & E 3 y' sales..This plan is available to any customer who b
a W U a U M M A H vi n e p 9 a ?",
uses more than 100 thousand cubic feet per day.
Other factors that contributed to the decline'in
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g R R g ~ g g $
3" therm sales are customer conservation and the tem-o 4
2m porary switch by certain industrial customers to y,
g nny g g a4 j 2e -
alternate fuels. Through three cl'anging conditions y g g g a g g g g s
we regamed most of the industrial gas load that was g g g g g l240' '
g g g y lost to alternate fuels: approval of a more favorable wa
'g a - 220 -
4 4 H H M 9 N B a m 4 200 l
rate for.interruptible customers, reduced prices from
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prices.
Five pipeline suppliers and an integrated delivery B B E B d B E E B E !.,..
system provide flexibility that allowed us to respond 3 M M B W H R H H E a g
to significantly higher prices when two pipelines
.h N h n n4 M N a u 4,,
began impcrting liquefied natural gas (l_NG) from
,J 9 N ti a H we n d e Algeria. We increased purchases from our three
=a e aun n sa ng E."~
other pipeline suppliers and minimized gas price
[ i U g g g g g g g g i "-
increases to our customers. In December, the two 3 g g g g g g g g g tj s" pipelines suspended purchases of the LNG.
_ g g g g g g g g g g g 120 0 i T 74 75 76 77 78 79_ ' N SI 02 ; 33 Customer Services
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Our special rates for interruptible electric services and off-peak use of energy telped many industries reduce costs and survive the recent recession. As the economy now improves, so do our sales to these cus-8
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50 commercial and industrial customers in Decatur Gas Revenues
- (MILLIONS OF DOLLARS) and Danville attended energy management courses we of fered on how to perform energy audits.
b 52o To help residential customers hold down their util-500 ity bills, we continued a program of home energy au-4 dits. We performed 1.800 such audits during the 3,
year. About 18 percent of our residential customers' i
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homes now have been checked for energy efficiency in sa F
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under this program.
53 A demonstration program to weatherire 2,100 a
y ** *0 homes of low-income customers was begun in a
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November. In 600 of these homes, a more extensive p.
a b; d 40 program includes installation of weatherization 3e N
3 materials, w hich we provide, and assistance in 5 U $ 320.
obtaining loans for major energy conservation 4 3EEU improvements.
l 300 l
1 l333da The Energy Assistance Foundation, founded in "23&33,o 1982 with a grant of $250.000 from Illinois Power 2
A h B d 4 de Company, made eight grants totaling 582.384 during 2
N U n U M 4 1983. The grants were made to organizations in 7 g g g 2m Illoomington, Galesburg, Granite City, Decat u r, j
a 2
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a" llelieville, and East St. Louis to help our customers 2e n :t n g a a q ".
make their homes more energy efficient and reduce va y e e n a s
u 4 energy consumption. We will match voluntary con-4
- - w ns s a tributions to the fund up to an additional $250.000.
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u w n s n g n a g120.
Also, the State of Illinois helped 2,500 of our l- - g; g-g- E F E s I a w E37
- g - -
g too customers with utihty bill assistance.
The n g g 7 -
.q. so to equah, umber of our customers using budget billing
/e utth,ty payments throughout the year has
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increased 29 percent since 1982.
- 4 9 0 6
- f. 3 B d & 2 The Illinois General Assembly enacted several 3
nw u. 9 n s N n n h prosisions in 1983 ofinterest to the utility industry.
74 75 76 77 78 79' 88 SI 82': 83 One expanded the ll!inois Commerce Commission from five to seven members effective in January, 1984. Another created a Citizens Utility lloard (Cull) with authority to intervene on behalf of con-sumers in utility rate cases. The Cull is authorized tomers. While some companies in our territory to include information in our mailings to customers; ceased operations during the year,59 companies however, we are not required to handle Cull mem-built or expanded facilities in our territory in 1983, bership records or funds. One law changes our creating more than 1,100 new jobs. One of the new method for bilhng state revenue taxes to indicate on facilities is being constructed by lleidtman Steel, Inc.
cust mer bills the entire 5.08 percent we collect.
in the Northgate Industrial Park, which we own and Another measure eliminates the use of construction are developing at Granite City, Illinois, w rk in progress (CWIP) in rate base after llusiness, government, and community leaders in December 31,1988, except for pollution control Edwardsville, Collinsville, N1aryville, Glen Carbon, devices. Construction of our Clinton power station,
~
and Troy took part in our unique community desel_
for which 5625 million of CWIP currently is in rate opment training program. Since 1974,52 of our base, is scheduled to be finished in 1986.
communities have used this program designed to help them retain and attract employers.,The Niclean C]intOn power Station County Economic Development Council was created in Niay as a result of training we provided in 1982.
We also coordinated a business retention program Ten stop work orders imposed in 1982 on specific with the Association cf Commerce and Industry in jobs have been lifted. Construction activities acceler-Niclean County for 60 major area employers. About ated at mid-year, and the number of craft workers, 1
\\
l i
d
support staff, and training personnel at the site has been increased. The stop work orders resulted from Electric Peak Loads concerns that inspection and documentation of work (IN THOUSANDS OF KW) were not adequately keeping pace with construction.
The Nuclear Regulatory Commission (NRC) has approved our plans to recoser from the causes of the
.' y, 3m 3.200 h
stop work orders.
3.000
~"
t i n R a a n At year's end, construction of the power plant was
-7 g g - ; g 2m 2m 82.6 percent complete. The contractor has turned m g g n y y 3 g g over to the operating staff 45 percent of the plant's g
g p g - g.2m y g systems for testing. A major milestone was reached 2.200 y
g y,,
in October w hen the turbine-generator, the equip-
.:. iy. 4L c -
Il 2 2.000 I E d 3 3 $ :: 8 $ 3 f.5,soo ment that produces electricity, was completely i
assembled and mechanically rotated. This was a IM d h d 5 3 D W N i
E d,,
manual test and did not insolve the use of steam or i U N h 2 a M 8 H nuclear fuel.
t H H a w n u e is n U U,i.ooo.
" J " # 4 " 3 "
in Niay, we revised the schedule and cost estimate for completion of the power plant. Cost increases
- " " N " N " 2 M M soo and schedule delays at Clinton have been less than
{N n W n V N d $ M Mw the average for comparable nuclear plants under 6 - M F P 0 M P M u 4 construction. Our new schedule for loading toci is Ie a 5 a e M a L M p January,1986, a delay of two years from the pre-
! w a s e a e n e
q vious schedule. The plant is 80 percent owned by n,, 3,,,,,, se si s2 sa lilinois Power Company, and our share of the cost estimate is 52.4 billion, an increase of 5639 million.
The cost and schedule revisions are due mainly to four factors: design changes to meet NRC require-ments; a more stringent quality assurance and plant operations program; additional emergency planning expenses; and additional financing.
l The NRC panel that assessed the status of con-struction at Clinton in August reported:
I "On the basis of the discussions with IPC, subse-Gas Peak Loads j
(IN THOUSAN9S OF THERMS) quent evaluation ofIhe supporting documentation and inspection of the site, the Panel has concluded that the applicants' estimated fuelload date of Janu-L
+
ary 1986 appears to be ambitious but achievable.
IL 8"
The Panel estimates that fuel load will take place in p
4 b n the first quarter of 1986. Niceting this schedule how-i_ -
a%
a g g 7 880 p ;,j p g 7.200 ever, will require continous and aggressive manage-ment involvement by IPC and its consultants for the a n9 nN N 4 u a " '
duration of the project.,
g g g g g g g g g yem-To meet part of the emergency planning require-g g g E g g Q g g 5*
~
e '" '
ments for nuclear power plants, we installed eight,le a u aa M N N H n outdoor sirens at various locations within a 10-mi g g g g g ; Q g y 42m -
radius of the plant. The sirens will be used by county g g g g g g g g 3m officials to alert the public to storms, tornadoes, or
3m industrial accidents, including any which might E 8 d U 3 $ 3 $ 8 E
.400 2
occur at the power plant.
3 E E D 2 0 $ 3 5 E' i oo.,
n M n M n it u u uu On October l4 we canceled Clinton Unit 2. Pro-g g -
g g g g g i.2w.
Jected sales of electricity mdicate that no replacement j
gggggg-p 600 -
or additional generating units wn!! be needed, after o
Clinton Unit I comes on line, until late in the 1990s.
" L 75 :7'. 77 7' : 7e ; as si s2 a3 No work on Unit 2 has been performed since 1977 l
10
(the full construction work permit was issued in page bonds, the sale of stock through various rein-1976). Ilased on net after-tax cost, we will have vestment and stock purchase plans, and funds gener-insested from Sl6 million to S22 million on Unit 2.
ated internally.
- Fhe final amount will depend on the cost of cancel-In Niarch, we received approximately 549 million mg various contracts. % e will seek llhnois C om-from the sale of one million shares of Cumulative merce Commission approval to recover these costs Preferred Stock, Adjustable Rate Series A. They over a period of years.
were offered to the public by a group of underwriters I
at 550 per share. The dividend rate is adjusted quar-Other Construction teriv based on an annuai rate 3.35 percentage points less'than the rate for U.S. Treasury securities.1 his is the lowest rate of any utility adjustable rate preferred We spent a total of S360 million for construction stock financing completed in 1982 and 1983. In activities during the year: S300 million on Clinton-December we sold 5125 million First Niortgage related work: S45 million for other electric facilities:
Honds (Pollution Control Scries C) 10-3/4 percent and $15 million for gas projects.
Series due 2013. These tax exempt pollution control Our customers will benefit from seseral improve.
bonds were sold through the Illinois Development ments made to our facilities in 1983.
Emance Authority.
We ended one of our longest right-of-way pro.
The Automatic Reinvestment and Stock Purchase ceedings w hen construction was completed on 35.5 Plan, the Employee Stock Ownership Plan, and the miles of 345.000-volt transmission line between Tax Reduction Stock Ownership Plan and Trust Sidney and Kansas, Illinois. Regulatory and court provided about S65 million from the sale of proceedings had delayed the project seven years.
3,063,709 shares of new common stock.
Construction was completed, and the facilities were Nearly 23.900 security holders are now in the put into senice in October. This new line will insure Automatic Reinvestmerit and Stock Purchase Plan,
~
more reliable and efficient energy delivery to custom-an increase of about 80 percent since the beginning ers in the Champaign-Urbana and Dansille areas.
of 1982. The increase was stimulated by more liberal The electrical systems of the Belleville and I.aSalle federalincome tax provisions. Effective through service areas also were reinforced with construction 1985, these provisions allow individual stockholders of 20 miles of new 138,000-volt transmission line.
w ho reinvest dividends in common stock to defer payment ofincome taxes on those dividends, up to improvements to the natural gas system dur.ing 5750 a year (S1,500 on a joint return). If these shares the year iricluded the installation of 85 miles of new are held more than a year, the reinvested dividends and replacement gas lines.
will be taxed as a capital gain when the shares are in 1984, we expect to spend S380 million for con.
sold.
struction activities, reflecting our continued efforts We continued agreements with several banks to reduce construction costs. The total meludes S304 which make S399 million available through revolving -
million for the Clinton power station: 559 million for credit agreements. These include agreements for other electric facihties: and Sl7 milhon for gas. Just credit of $180 million with four Chicago banks,544 as in 1983, expenditures in 1984 will be less than the million with banks within the territory we serve.
peak m 1982 of nearly S413 milh,on.
5125 million with a New York bank and two Euro-The five-year construction program for 1984 pean banks, and 550 million with a group of Euro-through 1988 reflects the continued cost reduction pean banks.
efforts and amounts to S1.5 billion.
Cost Control Measures Financing Our actual operating and maintenance costs in 1983 were about S10 million under the austere We expect to fund 1984 construction expenditures with $200 million of outside financing and the re-budget for the year, and construction expenditures mamder from internal sources.
were $30 milhon below budget. % e have limited spending to the absolute minimum consistent with The financing for our 1983 construction program providing safe and reliable service to our customers.
and the refunding of $20 million of first mortgage As part of our continued emphasis on improving bonds which matured on Nosember I was prosided efficiencies throughout the Company, we began a by the sale of preferred stock, the sale of first mort-new work management program for gas and electric
.11 A
i employees in the field. The program has improsed The Illinois EPA reissued a permit for the llald-the planning and scheduling of personnel. Ily mid-win station's water discharge system and is expected 1984. it will be in use in all sersice areas. We also to reissue permits for our other plants in 1984.
reduced sersice area storeroom insentories by $1.5 Proposed state regulations on solid waste disposal million. a 15 percent reduction. We also plan to were withdrawn in mid-year to be proposed again in reduce energy use in our facilities by 20 percent.
1984. These may change the way we store the ashes Our budget for 1984 is based upon the cost con-and other wastes produced by our coal-fired power trol objectises begun in 1981. Construction projects plants.
were limited to those necessary to provide safe and We launched a six-year program to meet federal reliable senice. Recommendations by a special requirements for use of electrical equipment contain-budget panel of three managers, and further critical ing polychlorinated biphenyl(PCil). We started resiew by all officers. resulted in an operating budeet replacement of capacitors and transformers contain-for 1984 less than one percent higher than the 1983 ing PCils throughout our Company.
budget.
We also conducted 25 audits in 1983 to assure compliance with ensironmental regulations. In addi-tion to our own facilities, we audited those of outside Environmental Activities organifations providing us services, such as the dis-posal of wastes.
Congress is still considering several" acid rain"
.I he Kilngas coal gasih_eation demonstration unit proposals that could have an impact on our constructed at our Wood Riser power station began operations. N!any of these bills call for lower sulfur start-up testing in June. I he project is designed to emissions from coal-fired power plants in the Mid-consert environmentally unacceptable high-sulf ur.
west. However, new scientific data are beginning to coal into a clean-burning gas for generating electric-show that sulfur emissions in Illinois base less effect IIY;I he gas produced.
on areas in the Northeast than previously indicated.
in the... l tests exceeded mitia Two additional actisities related to our power expectations m quality and heating value. I wo types plant operations hase produced good environmental os coal will be tested during the demonstration runs:
results.
lilinois number 6 coal.,found throughout our senice A biolouical study showed that hot water dis-area, and an Appalachian coal from the eastern charges int'o the llaidwin power station cooling lake United States. Performance testing of the project hase accelerated growth of largemouth bass.
began in late 1983 with the product gas bemg burned An ensironmentally sound method we invented to for the 50-megawatt generating Unit 3 at our Wood present blockage of dater pipes by Asiatic clams at Riser station. Demonstration results should be the llaldwin power station is beco' ming recogni/ed by aqiilable m m,d-1984.
i the industry as one of the most thorough and eco- ~
I he 3155 million demonstration program is be.mg nomical methods asailable to sohe the problem.
funded by Allis-Chalmers C orporatmn deseloper of.
the Kilngas gasification concept: by lilinois Power Company and 11 other utilities; by the State of Illi-Research and Development nois: and by the Electric I ower Research Institute One possible addition to the Kilngas project for operation after mid-1984 is a combustion turbine Our research and deselopment expenditures for program being structured by Allis-Chalmers. Sargent 1983 totaled approximately S3.5 million. A S2.4 mil-
& l. undy Engineerr, and General Electric Company.
lion commitment to the Electric Power Research A system would be placed at Wood Riscr to demon-Institute (EPRI) was our largest expenditure. EPRI strate the use of the Kilngas product gas with com-is the electric utility industry's research arm and bustion turbine technology, an important operating conducts research on behalf of some 500 utilities on mode of future commercial Kilngas plants.
technology to improve the production, distribution.
Seseral ensironmental activities resulting from and utilization of electrie energy. About St.1 million federal and state regulations were carried out during was spent for local research, which includes support 1983.
for the Kilngas demonstration program.
We base a request before the U.S. Ensironmental We are continuing to field test the use of com-Protection Agency (EPA) for a rule change that will pressed natural gas as a fuel for motor vehicles in 35 allow us to continue burning Illinois coal at the of our vehicles. A successful demonstration could Italdwin power station, lead to the cons ersion of other Company schicles and 12
L to the promotion of natural gas as a motor schicle Company Omcers fuel f or use by our commercial customers.
[
Projects associated with the Clinton power station
[
include research of nuclear power operations, waste management, pipe cracking, and satet).
On April 1. M r. l.conard J. Koch, sice presider,t,
% e completed studies of various load management retired f rom the Company. lie was associated with 3
g techmques. meludmg wa.ss to control electric peak the Company since 1972.
loads and shitt energy usage to oll-peak periods m on June S, the lloard of Director; elected vice e
an effort to deler the need for f uture power plants. A presidents 1.arry D. Ilaab and William E. Warren g
field test was conducted to esaluate and demonstrate senior sice presidents: Jerome P. O'Grady, sice pres-ident; and I.arry F. Altenbaumer, treasurer. The the control of electrie water heating load during floard appointe'd Gary I.. Secor assistant treasurer.
p system peak.
- Responsibility for Information Board of Directors The financial statements and all information in this annual report are the responsibility of manage-
~1 he directors of the Company are elected each
[
ment. ~1 he financial statements hase been prepared year by stockholders at the annual meeting. All 12 in conformity with generally accepted accounting directors were re-elected at the meeting on April 21.
" principles consistently applied. In the opinion of 1983.
management. the financial statements fairly reflect Members of the board of directors serse on coin-t E
the Company's fmancial position, results of opera-mittees established to address various issues of man-g tions, and sources of funds prosided for gross prop-agement. Recommendations of the committees are g erty additions.
presented to the full board for discussion and final r
We maintain accountine and internal control sss-determination. Current committees and their mem-I tems which we beliese are' adequate to proside '
berships are:
teasonable assurance that assets are safeguarded Finance Committee -This committee meets to re-against loss from unauthorized use or disposition:
siew the Company's financial forecast, financing g and we beliese that the financial records are reliable plans, and pension fund insestments, and it makes for preparing tinancial statements.
recommendations to the board concerning such mat-g
?
The financial statements hase been audited by our ters. Members of the committee are: Gordon R.
independent accountants Price Waterhouse, in Worley, chairman, William C. Gerstner, Grover J.
a accordance with generally accepted auditing Ilansen. Wendell J. Kelley, Keith R. Potter, Boyd F.
F standards. Such standards include the study and esal-Schenk, Richard P. Stone, Charks W. Wells, and uation of internal control to establish a basis for Vernon K. Zimmerman.
f deseloping the scope of the examination of the Audit Committee-This committee, w hich con-financial statements. In addition to the use of inde-sists entirely of non-management directors, recom-pendent accountants, we maintain a professional mends tiie appointment of the Company's independ-staff af internal auditors u ho conduct financial, pro-ent accountants, confers with the independent
=
cedural, and special audits. The system of internal accountants, and reviews the scope of the audit, the n
l-controls consists of several important elements, results of auditors
- cxaminations, and the activities g
including selection and training of qualified person-of the Company's internal auditors. The members
[
nel, continuing maintenance and use of accounting are: Vernon K. Zimmerman, chairman, Robert J.
E and administratise policies and procedures, and the Hurow, Groser J. Ilansen, Donald E. I.asater, Eva k internal auditing programs.
Jane Milligan. and Richard P. Stone, g
The Audit Committee of the Board of Directors.
Compensation and Organization Committee-consisting solely of non-management directors.
This committee resiews and recommends compensa-E meets periodically with management, the internal tion of elected Company officers, resiews benefit y auditors. and the independent accountants to discuss plans, and recommends nominees to fill vacancies on accounting, auditing, and financial reporting mat-the board of directors. The members are: Keith R.
- r. 4' *-
ters. To assure their independence, both Price Potter, chairman, Robert J. Burow, Wendell J.
A L
Waterhouse and the internal auditors hase direct Kelley, Donald E.1.asater, Eva Jane Milligan, Boyd
. pe
^
- access to the Audit Committee.
F. Schenk, and Gordon R. Worley.
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Management's Discussion and Analysis of Financial 46 Condition and Results of Operations
.?.W f,
Reference is made to the Financial Statements and Short-term borrowings, such as commercial paper,,g,
Electric and Gas Operating Statistics for information were utilized to meet interim cash requirements be-f..*j :
tween long-term financings. There were no o concerning financial cond: tion and resuits of opero-ing short-term borrowings at December 31,1983.
k tions. The factors having significant impact upon Lines of credit with commercial banks o'o m financial condition, changes in financial cond, tion, 1 C.
toined to meet interim cash requirements. Our. total and results of operations since January 1,1981 are os follows:
line of credit was $399 million at December 31,1983. S.
including $125 million to support our commitment to ;.4 p In addition to the above lines of credit, we estob f qtg.,
lP Fuel Company.
Liquidity and Capital Resources iished a foreign financing subsidiary, IPF (Illinois Power yf 3 of this subsidiary is to provide the option of issuing.p.4 hnonce) Company N V. in October,1981. The purpose Gross prope..ty additions for the years 1981 through fj t
1083 were $1.1 billion, including opproximately $200 million of allowance for funds used during construc.
lower cost debt in the European financial market. Ingg tion. Funds totaling $40 mithon were required for bond June,1982, IPF issued $50 million of 14-1/2% Guaron y y leed Debentures.
.q retirements during this three-year period.
m The Clinton power station Continues to be our major it is important that we maintain the financial '
(
item of construction and accounts for opproximately strength necessory for flexible access to financial 3 i
markets in order to obtain the capitol necessory for 77% of the total construction expenditures in this our ongoing construction program. It is also im three-year period. Our 80% ownership interest in the that we maintain the interest coverogo ratio requireo y; Clinton power station is estimated to cost $2.4 billion additional first mortgage bonds. Failure to m by the Mortgage and Deed of Trust for the issuance of and will require capital expenditures of about $700 fp mili;on prior to schedu!ed completion in 1986. In addition to the funds required for construction during interest coverage ratio could result in citernative, and p{i j
potentially higher cost, financing methods to provide lh the 1984-1988 period, estimated of $1.5 billion, m
the projected capital requirements associated with opproximately $158 million will be required to retire long-term debt and preferred s+ock redeemable dur.
our ongoing construction progrom and other working. yM ing the period and for sinking fund payments on first capital needs. At December 31,1983, based upon the
..: j mortgage bonds.
most restrictive earnings test contained in our Mort-f7, The estimated construction costs to complete the gage and Deed of Trust, approximately $407 million of :4%
Clinton power station reflect S625 million of construc.
additional first mortgage bonds could be issued at on fgg tion work in progress (CW1P) in the electric rote base assumed interest rote of 13-1/4%.
,y a
as granted by the Illinois Commerce Commission
[Ng
?g. ' 'c.
(ICC) in January,1983. The rotemaking treatment of including CWIP in rote base provides immediate cash Results of operat,ons i
through 1983, electric revenues increased 39.3%
to pay the construction financing cost on that portion Electric Operofions-For the Ihree-year period 1981 C
Y' of CWIP. While we capitalize on allowance for funds used during construction (AFUDC) on CWIP expendi-components of which are summarized as follows:
A,.
d tures not included in rote base, this non-cosh credit to
- [g.7,.
income does not provide immediate cash.
1983 1982 1981 Funds generated from operations amounting to luimons of Dollars) kIb
$207.2 million for the years 1981 through 1983 pro-raato increases.
S 59 s 60 s 55 g.j'1T vided working capital to meet operating require-
]
g,,
]
Q Q g (C S
-y ments and a portion of the funds needed for the rievenue increase.
s105
$ 65 s 54 -b ongoing construction program. Funds from external 9 A, sources during this three-year period totaled H3.6 Revenue growth reflects general retail increases of D # s-19.9% effective July,1981 and 10 3% effective
@/
million. Commencing with the commercial opa-( '.on of Clinton power station, we anticipate a reducon in 1983, os granted by the ICC.
the need for external capital.
While kilowatt-hour sales decreased 1.9% and 1.7%, ?M. i
.l-2, n.c ;.-
14
7
=
?
tuNois POWER COMPANY / ANNUAL r<EPORT 1983
=
l 9
?
respectively in 1981 and 1982, soles increased 6 C% in fively, subject to recovery through such clause in a i
1983 as we experienced on unusuo!!y hot summer later period, was deferred.
and on improved economy within our service territory.
Solos of interchange power fluctuate os o direct r
Sales curing 1983 to residential. commercial, and result of market demand based upon the needs of industrial customer groups increased 8.1%. 3 9% and other utihties and the availability of our generating 4 0%, respectively in contrast, soies during 1981 and capacity to serve those needs. The credit for power 1982 were offected by the economic recession. Os interchanged-net increased coout $15.2 million in e
evidenced in port by the 1982 decline in industriol 1981 and decreased about S19.7 million in 1982 and soies of 51%, mild summer weather. and customer
$11.0 million in 1983. The decline in 1982 and 1983 is conservation.
the result of a weakened market for such opportunity The cost of fuel for electric plants increased $5 0 mil-sales to other utilities. Also, during 1983 cur obility to hon and $25.5 mill;on in 1981 and 1983. respectively, moku such soles was limited due to the use of our and decreased $9.2 million in 1982. Power purchased available generating units to meet the post summer's for reso!e increased $12 4 million and $14.3 million in increosed customer demand.
1981 and 1982, r9spectively, and decreased $9.7 mil-Gas C5erofions-Gas revenues increased 54.3% for lion in 1983. Changes in both fuel costs and power the th.m-year period 1981 through 1983, the compo-purchased for rescie are offected by system load nents of which are summarized as fo! lows:
requirements, ovadobility of generating units to meet 7
those requirements. fuel prices purchased power oss us2 Mai g
prices and volumes, an. recovery of fuel costs through the fuel adjustment Clouse.
pote increases...
S3 S
Therm volumes 8< wheeling.
(51) 18 (8)
Kilowatt-hour generation decreased 3 8% and 8.3%
Gas cost recoveres.
84 60 35 s
L in 1981 and 1982, respectively, and increased 9.6% in Revenue increaso.
S 66 S 78 S 27 1983. Cool constituted about 98.7%,99.2%, and 98.8%
y j
of fuel used for generation for 1981 through 1983 The Revenue growth reflects the general retail rate in-(
weighted overage cost per ton of cool burned in-crease of 7.2% effective January,1983, as granted by creased 6. 7% in 1981 and 6 6% in 1982. and decreased the ICC.
31% in 1983 During this three-year period, improvements in avail-Fuel costs for 1981 reflect the impact of the United ability of gas from our pipeline suppliers and conser-
?
Mine Workers of Americo strike when it was necessary votion efforts of our customers have enabled su'ficient 7
to utilize our higher cost generating units because of volumes of gas to be available to meet all customer T
the unovailability of cool deliveries to the Baldwin requests for additional gas service. We believe that for p
power station, our most efficient generating station.
the next few years growth in therm sales will be r
This fuel cost increase was moderated by a decrease offected by market demand rather than gas supply.
in generation and a $12.4 million increase in power Therm soles decreased 3.4% in 1981 and 13.9% in t
purchesed for resale os a result of the availability of 1983 and increased 5.8% in 1982. The maior factors r
additional power from Electric Energy, Inc.
offecting therm sales for the three-year period were
?
The principal factors offecting the 1982 increase in the increase in the gas supply, changes in economic fuel cost and purchased power were higher prices and weather conditions, and customer conservation.
paid for fuel, additional power purchased from Elect-The 1982 increase primarily reflected the sovere winter r
ric Energy, Inc., and a decrease in deliveries to our weather during the early part of the year. The decrease customers and interchange markets. During 1983 the in 1983 was due to the mild 1982-83 winter weather, E
oggregote increase of $15.8 million for fuel and pur-customer conservation, and the effects of " gas wheel-chased power reflects the 9.6% increase in kilowatt-ing" contracts which began in September,1983.
hour generation, partially offset by o 59.8 million de-Under "gos wheeling" arrangements, our larger cus-crease in power purchased from Electric Energy, Inc.
tomers (those who use more than 100 thousand cubic in 1982 we implemented a new electric fuel adjust-feet per day) may independently contract with gas r'
ment clause, os ordered by the ICC. At December 31.
producers to supply their gas requirements. Such gas y
1983 and 1982, $1.1 million and $4.1 million, respec-is then transported to the customer through our distri-y 15
-=
ERumm-bution system. In 1983 "gos wheeling" provided earn-each of the three years is due to increases in state and ings which were comparable to those which would municipal utility taxes resulting from the growth in have been obtained from making direct gas sales.
operating revenues.
The loss of therm soles through these " wheeling" trans-The Company's combined federal and state effec-octions accounted for about 37% of the 1983 decline tive income tax rate was 34 4% 34 2%, and 38.3% in in sales to our customers.
1981,1982, and 1983, respectively. For a detailec The cost of gas purchased for resale increased $38.4 onalysis of income tax components see Note 5 of th million. $56 4 million, and $31.9 mil l ion in 1981,1982,
" Notes to Financial Statements" and 1983, respectively. The annual cost increases are Other Income-Total AFUDC increased $10.2 million primarily attnbutable to higher prices paid for gos. The in 1981 S17.0 million in 1982, and S8.0 million in 1983
=
overage cvst per therm delivered to our customers increases in AFUDC relate to changes in the AFUDC increased 22.8% 15.9% and 24 3% in 1981,1982, and effective offer-tax rote and the amount of CWIP sub-1983, respectively. Gas purchased for resale in 1983 ject to AFUDC which is not included in rate base.
was also impacted by the deferrol of $10.8 million sub-The following table shows the amount of CWI jeci to recovery in o later billing period in occordance included in rote base related to the Clinton power with the provisions of the new uniform purchased gas station. as approved by the ICC, and the AFUDC offer-odjustment clouse (UGAC) implemented during the tax rate:
year. In addition, os a result of implementing UGAC, cw1P AFUDC 1983 gas purchased for resale includes S3.6 million of included in Effective Time Period Rote Bose* After.Tox Rote gas storage costs which previously would have been Classified as other operating expenses.
January - June,1981......
S 97.1 7 75 %
Ju'y.1981 - December.1982.
3750 8 75 Other Expenses and Taxes-A comparison of in.
January - December.1983.
625.0 9 25 creases (decreases) in other expenses and taxes for wnons of Donors the lost three years is presented in the following table:
Interest Chorges-Interest charges increased $10.
9 83 os2 usi million, $16.0 million, and $11.8 million in 1981,1982 (Thousands of Dollars) ano 1983, respectively. These increases primarily reflec t ng exr.;enses. S (5
)
S 7.
S 5 the $342 million of long-term debt issued during th Depreciot.on.
5.504 1.470 2.196 period of a weighted overage interest raf Generar taxes.
9.679 10.155 6.348 of 12.4% During this period we retired $40 million o The changes in other operating and maintenance long-term debt with a weighted overage interest rot of 3.5%
expenses reflect tne impact of inflation, increased employee wages and benefits, the continued efforts Earnings per Common Shore-The increases in ne of our internal Cost Reduction To* Force and, during income opplicable to common stock in 1981 throug 1983 the reclassification of gas storoge costs os de-1983 resulted from the interaction of all the factor scribed above.
discussed herein, including the issuance of additiono The rate of inflation, os measured by the Consumer preferred stock in 1983. Changes in earnings pe Price Index, was about 10 4% in 1981, 6.1% in 1982, common shore also reflect the increased number o and 3.2% in 1983. During the period, through both common shores outstanding in each year. (See Note the timing and scope of our rate requests, we have 10, ii, and 12 in " Notes to Financial Statements").
ottempted to reduce the financial impact of infic-tion.
Inflaflon The increases in depreciation resulted from increases inflation has on impact on our reported earnings in depreciable property, os well as a change in shareholders equity, and other financial informatio depreciation rates for gas property as allowed in the that is not measured by traditional accountin 1983 rote order.
methods. For supplementary information to disclos The most significant change in general taxes during the effects of changing prices, see pages 31 and 32.
M 16
l l
ILUNOIS POVER COMPANY / ANNUAL REPORT 1983 Balance Sheets Decemoersi, 4983 1982 (Thousands of Donors)
Utility Plant,of original cost Electnc (includes construction work in progress of $1.755.956.000 and
$1 A69.018.000, respectively)
$ 3,445,645 S 3.136.774 Gas (includes construction work in progress of $5A66.000 and S6A31.000, respectively).
366.651 357.106 3.812.296 3A93.880 Less-Accumulated depreciation.
764,175 709.329 3,048,121 2.784.551 Nuclear fuel 54,022 48.717 Acquisition adjustment (less amortization of $2A16.000 and $2.171.000 respectively).
1,516 1.761 3,103,659 2.835.029 Investments and Other Assets.
23,586 25.616 Current Assets Cosh.
16A91 8.983 Temporary cash investments, at cost, which opproximates market.
39,954 8.000 Accounts receivable (less o!!owance for doubtful accounts of $5.500.000 and
$4.000.000, respectively).
85,794 74.808 Materials and suppdes. of overage cost Fuel.
34.598 54A87 Gas in underground storage.
29A14 24.039 Operating materials.
23.930 22442 Prepoyments. miscelloneous accounts receivable. and other.
38,835 32.188 269,016 224.947 Deferred Charges Unomortized deterred abandonment cost.
30,513 Unamortized debt expense.
8,863 5.647 Other 1,300 1.283 40,676 6.930
$_3,436,937
$ 3.092.522 CAPITAL AND LIABILITIES Capitalization Common stock-No por value. 60.000.000 shores authorized; 49.922.166 and 46.858A57 shores outstancing, respectively, stated at.
$ 863,999
$ 798.706 Retained earnings 280,814 220.288 Less-Copitol stock expense.
7,143 5.532 Ictal common stock equity.
1,137,670 1.013A62 Preferrxi and oreference stock.
265,171 215,171 RedE. N W:V wferred stock.
36,000 36.000 Long-term debt.
1.291,555 1.166.980 Total capitalization.
2.730,396 2431.613 Current Llobilities Accounts povable.
126,914 105.495 Long-term debt maturing within one year.
20.000 Dividends payable.
39.147 34.162 Income taxes accrued 3.199 16,966 General taxes occrued.
27,957 31.623 Interett accrued.
39,936 39A92 Other.
24,349 21.387 261,502 269.125 Other Accumulated deterred income taxes.
251,206 214.811 Accumulated deferred investment tax credits.
193,833 176.93 445,039 391.784 Commitments (Note 7)
$ 3A36.937 S 3.092.522 see notes to hnonesol statements wk,ch are on,ntegrol part of these staternents.
17 L_
Statements of income For the Years Ended Decomber 31, 1983 1982 1981 Operating Revenues
- Electric.
$ 790.588
$ 685.544 S 620.968 Gas.
487,671 421.231 343.3'.4 Total.,
1,278.259 1.106.775 964.292 Operating Expenses and Taxes Fuel for electric plants 262.002 236A60 245.626 Power purchased for resole.
23,612 33.314 18.970 Power interchanged-net.
(24,946)
(35.989)
(55.684)
Gas purchased for resole 345,721 313.788 257A27 Other operating expenses.
97,020 102.891 95.195 Maintenance.
45.259 44.995 44.731 Depreciation.
67,025 61.521 60.031 General taxes.
98,571 88.892 78.737 State income taxes-current.
15,895 11,257 8.014 deferred (net).
6,728 2.384 3.239 Federal income taxes-current.
76,012 50.909 3?.215 ceferred (net).
37,700 14.202 17.594 investment tax credit-t / < red (net).
16.860_
22.227 21A19 Total.
1,067459 946.851 827.514 Operating income 210,800 159.924 136.778 Other income Allowance for funds used during construction-All funds-prior To January 1.1977 Equity funds-ofter December 31.1976 64,217 57.841 45.101 Miscellaneous-net.
25,812 21 A98 16.651 Total.
90,029 79.339 61.752 Income before interest charges.
300,829 239.263 198.530 Interest Charges Interest on long-term debt 110,260 93.599 82.318 Other interest charges.
5,003 9.837 5.109 A!Iowance for borrowed funds used during construction-offer December 31,1976.
(22.170)
(20.568)
(16.310)
Total.
93,093 82.868 71.117 Not income.
207,736 156.395 127.413 Preferred dividend requirements.
23.640 19.897 19.897 Net income applicable to common stock.
$ 184.096 S 136.498 S 107.516 Weighted overage number of common shores outstanding during the period..
48A73,770 44.839.807 37.843.513 Earnings per common shore.
$3.80
$3.04 02.84 Cash dividends dectored por common shore..
$252
$2.48 S2 405
' Includes revenue related tones added to customer billongs in each of the years 1974 through 1983. In 1983.1982. ond 1981 these revenue related tomes were $67,191,000 $$9,381.000. ond $51.048.000, respectively.
Retained Earnings For the Years Ended December 31, 1983 1982 1981 (Thousands of Dollars)
$ 220.288 S 197,762 S 183.060 Bolonce at Beginning of Year.
207,736 156.395 127A13 Not income.
428,024 354.157 310473 Less-Cosh dividends-Preferred stock.
23.990 19.897 19.897 Common stock.
123,220 113.972 92.814 147,210 133.869 112J11 Bolonce of End of Year..
$ 280,814 S 220.288 S 197.762 see notes to hnancoc~l statements whrch are an integral part of these statements.
18
I 1
ILLINOIS POWER COMPANY / ANNUAL REPORT 1983 1980 1979 1978 1977 1976 1975 1974 (Thou' ands of Doliors)
$ 567.356
$ 479.052 S 452.207 S 383.567 S 303.066 S 275.809 S 221.126 316.014 272.770 219.807 183.820 158.595 133.142 108.789 883.370 751.822 672.014 567.397 461.661 408.951 329.915 240.601 225.621 207.082 148.553 123.782 88.725 63.013 6.527 6.171 5.505 8.664 7.092 5.591 4.727 (40.452)
(58.498)
(47.078)
(30.855)
(51A84)
(29.522)
(18.321) 218.998 101.296 145.486 117.812 91.476 71.288 56.539 85.628 73.531 70.463 59.827 53.295 49.631 41.083 40.182 37.763 33.954 28.919 25.726 19.506 17.584 57.835 55.967 51.569 47.188 45.556 42.911 39.282 72.389 55.225 54.325 46.974 40.368 37.036 31.210 7.983 4.820 2.697 3.188 2.444 2.381 1.717 3.169 2.090 1.846 980 1.199 1.166 817 27.210 14.231 6.812 15.760 16.001 11.575 15.831 15.683 15.329 18.638 9.053 11.433 11.681 7.367 23 071 21 958 22.793 19.573 10.994 15.034 1.706 758.824 645.504 574 092 475.636 377.882 327.003 262.555 124.546 106.318 97.922 91.751 83.779 81.948 67.360 10.503 7.459 7.960 36.567
'27.520 21.321 15.137 14.798 10.043 9.402 5.709 3.1 74 1.967 2.231 51.365 37.563 30.723 20 846 13.677 9.426 10.191 175.911 143.881 128.645 112 597 97.456 91.374 77.551 72.952 62.005 52.453 42.091 35.927 33,144 28.779 4.050 1.752 1.439 1.888 1.744 1.508 4.122 (14.653)
(11.211)
(7.608)
(5.046) 62.349 52.546 46.284 38.933 37.671 34.652 32.901 113.562 91.335 82.361 73.664 59.785 56.722 44.650 19.069 15.699 15.699 13.257 10.606 7.229 7.229 S
94493 S
75.636 S
66.662 S
60.407 S
49.179 S
49.493 S
37.421 32.906.017 27.979.606 24.302.139 22.521.013 20.369.958 18.277.397 16.544.110 S2.87 S2.70 S2.74
$2.68 S2.41 S2.71 S2.26 S2.355
$2.28
$2 28
$2.22 S2.20
$2.20
$2.20 ce
" * * ^
[atedlOll50 NNE To the Board of Directors of Ilknois Power Company In our opinion, the accompanying balonce sheets and the related statements of income, of retained earnings and of sources of funds provided for gross property additions present fairly the financloi position of Illinois Power Company at December 31,1983 and 1982, and the results of its REPORT OF pm tons nd tne s urces of funds provided for gross property additions for eacn of the tnree years in the period ended December 31.1983, in conformity with generally accepted accounting princi-INDEPENDENT pies consistently applied. Also, in our opinion the statements of income and of sources of funds provided for gross property additions for each of the seven years in the period ended December 31 ACCOUNTANTS 1980. wnicn nove been prepared from the oppiicobie statements covered by our reports on eacn of those years, present foirty the financiot information included therein. Our examinations of these statements were mode in accordance with generally accepted auditing standards and accord-ingly included such tests of the accounting records and such other auditing procedures os we considered necessary in the circumstc.nces.
February 2.1984
,,j
/Ess"- W 19 E
Statements of Sources of Funds Provided for Gross Properly Additions For the Years Ended December 31, 1983 1982 1981 Funds Provided from Operations Net income.
$ 207,736
$ 156.395 S 127.413 Items not requiring working capital-Depreciation and amorti:ction.
69.971 64.520 62.659 Deferred income tores-net.
36,395 21.350 20.240 Deferred investment tax credit-net 16.860 22.227 21A19 Allowance for funds used during construct;on (86,387)
(78.409)
(61.411)
Total funds provided from operations.
244,575 186.083 170.320 Dividends on-Preferred stock.
(23,990)
(19.897)
(19.897)
Common stock.
(123,220)
(113.972)
(92.814)
Net funds providea from operations.
97.365 52.214 57.609 Funds Obtained from Extemol Sources Proceeds from sales of-Common stock.
65,293 132.785 93.236 Preferred stock.
50,000 Capital stock expense.
(1,611)
(465)
(427)
Proceeds from soles of bonds..
125,000 150.000 Proceeds from so!e of debentures.
50.000 Proceeds from sole of nuclear fuel.
39.810 Proceeds from sole of ownership interests in the Clinton power station.
Net increase (decrease) in notes payable (73.500) 70.500 Retirement of bonds.
(20,000)
(20.000)
Total funds obtained from externoi sources.
218,682 241.820 203.119 Other Funds Provided (Used)
(31,692) 43.325 23.565 Net decrease (increase) in working capital
- Miscellaneous-net.
(11,061)
(2.884) 3.811 Total other funds provided (used).
(42,753) 40.441 27.376 Total Funds from Above Sources 273,294 334.475 288.104 Allowance for funds used during construction 86,387 78A09 61 A11 Gross Property Additions.
$ 359,681 S 412.884
$ 349.515 Decrease (Increase) in Components of Working Capital
- Cash and temporary investments.
$ (39A62)
S (3.913)
S 3.371 (10,986)
(2.286)
(8.656)
Accounts receivable.
Matericts and supplies.
13,026 4.707 2.200 Accounts payable.
21A19 19.389 21,092 Div dends payable.
4,985 4.215 4.299 (17433) 12.257 1.612 Accrued taxes 444 10.745 31 Interest accrued.
(3,685)
(1.789)
(384)
Other-net.
$ (31,692) 43.325 S
23.565
- Eacludmg notes payable and long term debt maturing wuthin one year.
Gross Property Additions ond Retirements For the Years Ended December 31, 1983 1982 1981
$ 344,430 S 396.233
$ 330A70 Additions -Electric.
Gas.
15.251 16.651 19.045
$ 359,681 S 412.884 S 349.515 Retirements-Electric.
8,765 S
12.027 S
7A20 Gas..
5,520 2.869 3.139 14,285 S
14.896 10.559 see notes to innongual statements which are on integralpart of these statements.
N b
ILUNOts POWER COMPANY / ANNUAL REPORT 1983 1980 1979 1978 1977 1976 1975 1974 (Thousands of D000's)
$ 113.562 S
91.335 S
82.361 S
73.664 S
59.785 S
56.722 S
44.650 59.967 57.653 53.003 49.761 4V.845 44.810 41.216 19.922 16.635 20.275 14.099 12.632 12.847 8.184 23.071 21.958 22.793 19.573 10.994 15.034 1.706 (51.220)
(38.731)
(28.929)
(20.183)
(10.503)
(7.459)
(7.960) 165.302 150.850 149.503 136,914 122.753 121.954 87.796 (19.419)
(15.699)
(15.699)
(13.590)
(10.979)
(7.229)
(7.229)
(79.636)
(64.615)
(56.252)
(50 051)
(45.226)
(41.338)
(36.993) 66.247 70.536 77.552 73.273 66.548 73.387 43.574 82.146 85.451 67.870 3.788 63.712 47.256 27.894 36.000 50.450 50.iOO (845)
(368)
(379)
(275)
(525)
(186)
(139) 125.000 100.000 100.000 118.700 100.000 58.500 33.926 42.855 27.199 (34.145) 24.145 10.000 (10.000)
(12.000) 19.000 (10.000)
(15.000)
(15.000)
(45.000) 198.156 194.228 196.417 215.518 185.486 35.070 105.255 414 (11.048) 7.345 (23.480)
(13.177) 7.378 (27.781)
(474)
(835) 2.185 (1.628) 965 (407)
(1.238)
(60)
(11.883) 9.530 (25.108)
(12.212) 6.971 (29.019) 264.343 252.881 283.499 263.683 239.822 115.428 119.810 51.220 38.731 28.929 20.183 10.503 7.459 7.960 S 315.563 S 291.612 S 312.428
$ 283.866 S 250.325 S 122.887 S 127.770 (3.406)
(5.146)
S 22.231 S
(534)
$ (17.997) 1.996 S
(3.873) 4.328 (11.673)
(10.466)
(3.632)
(8.313) 12.749 (25.792) 1.707 (19.228)
(14.253)
.(24.868)
(11,149)
(9.134)
(11,944)
(22.799) 27.781 10.884 9.832 6.429 6.983 3.186 4.825 2.365 1.650 1.528 2.533 1.210 962 12.148 (3.455) 178 (4.466) 5.529 (6.330) 5.101 7.202 3.286 3.711 692 6.520 (402) 2.827 (3.591)
(4.978)
(6.590)
(2.032) 3.271 306 1.752 S
414 S (11.048)
S 7.345 S (23.480)
$ (13.177)
S 7.378
$ (27.781) 1980 1979 1978 1977 1976 1975 1974 (Thousands Oi 00llors)
$ 297.157 S 270.806
$ 296.597 S 272.462 S 239.936 S 112,234 S 116.637 18.406 20.806 15.831 11.404 10.389 10.653 11.133
$ 315.563 S 291.612 S 312.428
$ 283.866 S 250.325
$ 122.887 S 127.770 S
5.607 5.748 S
6.247 S
5.040 S
8.010 S
7,420 6.264 2.943 2.218 2.280 1.746 2.034 1.695 2.014 S
8.550 7.966 S
8.527 6.78g S
10.044 S
9.115 S
8.278 21
Notes To Financial Statements Note i-Summary of Significant Accounting Policies:
The Company is subject to regulations of the Illinois The uniform electric fuel adjustment clause imple.
Commerce Commission (ICC)ond the Federal Energy mented in 1982 and the uniform purchased gas Regulatory Commission (FERC). Because of the rote-odjustment clause implemented in 1983 provide that making process, certain d tferences crise in the oppli-changes in allowab!e energy costs from the Com-cation of generolly oCcepted accounting principles os pony's filed tariffs are possed on to customers. Accord-between regulated and non-regulated businesses.
ingly, allowoble energy costs which are to be possed Such differences concern mainly the time of which on to customers in a subsequent bill;ng period are various items enter into the determination of net deferred, net of related income taxes.
income in order to follow the principle of motChing costs ond revenues. The Company's principol account.
Allowance for Funds Usect During Construction-ing policies are described below.
The FERC Uniform System of Accounts defines Allow-once for Funds Used During Construction (AFUDC) m Utility Pla n t-The cost of odditions to utility plant and the net costs for the period of construction of bor-replacements for retired property units is capitolized.
rowed funds used for construction purposes and a Cost includes labor, material and on allocation of reasonable rate on other funds when so used. AFUDC general and administrative costs plus on allowance for is capitalized at a rote which is related to the approx-funds used during construction as desenbed later in imote weighted overage cost of capitol reduced by this note. Maintenance and repairs. including replace-the income tax effect of the interest portion thereof.
ment of minor items of property, are charged to main-While cash is not realized currently from such allow-tenance expense os incurred. When units of depreci-once, it is realized under the rate-making process over oble property are retired, the originol cost and dis-the service life of the related property through in-mantling charges. less salvage. ore charged to occum-creased revenues resulting from higher rate base and utoted depreciation.
higher depreciation expenses.
Depreciofion-For financial statement purposes, The rate used in computing AFUDC, which is on depreciation is provided over the estimated lives of the ofter-tox rate compounded semi-onnually, was various classes of deprecioble property by applying 7-3/4% from January through June, 1981. 8-3/4% from composite rates on a straight-line bosis. Provisions for July,1981 through December 1982, and 9-1/4%
depreciation of electric utility plant in 1983,1982, and throughout 1983.
1981 were equivalent to 3.4% of the overage depre-ciable cost. Provisions for depreciation of gas utility In accordance with ICC rate orders, the Company plant, as a percentage of the overage deprecioble excluded $97.064.000 of electric plant construction cost, were equivalent to 4.0% in 1983,3.0% in 1982, and work in progress (CWIP) from the base on which 2.9% in 1981.
AFUDC is computed for the Clinton power station Unit 1 from January,1981 through June,1981, Revenue and Energy Cost-The Company records
$375.000.000 from July.1981 through December.1982.
revenues os billed to its customers on a monthly cycle and S625.000,000 from that date through December, billing basis. At the end of each month there is on 1983. Since inese orders authorized the inclusion of undetermined amount of unbilled electric and gas such expenditures in the rote base upon which the service which has been rendered from the latest date Company realized revenues, there was no material of each cycle billing to the month end.
effect on net income.
22
ILUNoiS POWER COMPANY / ANNUAL REPORT 1983 Income Taxes-The Company normalizes the in-(Illinois Power Finance) Company NV. (IPF), the Com-come tax effects of transactions giving rise to timing pony's wholly-owned financing subsidiary. These bank differences between inclusion in financial statement notes, maturing in 1994, earn interest at a rate which and taxable income. Provisions for deferred income varies with the London interbank and Euro-dollar rates.
taxes are computed based on the statutory income IPF, organized under the laws of the Netherlands tax rotes in effect during the period that the timing Antilles, was established for the purpose of borrowing differences originate. Deferred income taxes are amor-funds outside of the United States (see " Note 13-Long-tized to income as the underlying timing differences term Debt"). The accounts of IPF ore consolidated in reverse.
the financial statements, and all intercompany bol-Principal sources of timing differences giving rise to deferred taxes are:
- Use of the most liberalized deprecioble lives and IP Gas Supply Company, a wholly-owned subsidiary.
was organized for the purpose of exploration to in-methods allowed by the internal Revenue Code,
- Capitatization of certain construction overheads, crease avai!cble natural gas supplies through one of the Company's pipeline suppliers. In accordance with dismontling, and other costs for book purposes which are claimed as current deductions for on order from the ICC, the accounts of the subsidiary income tax purposes, and are accounted for os on investment on the equity accounting method. The Company's investment at
- Revenues and energy costs recognized in differ ~
December 31,1983 and 1982 was $1.813,000 and ent periods for financiot statement purposes S3,990,000, respectively.
than for income tax purposes.
For income tax return purposes, net deprecioble util-Note 3-Short-Term Loans and ity plant does not include the allowance for funds used during construction which is capitalized, net of g
g tax, for financial statement purposes.
The Company had total lines of credit represented Investment tax credits which reduce federal income by bank commitments amounting to $399 million of taxes have been deferred and are being omortized to December 31,1983. These bank commitments support income over the life of the property which gave rise to the amount of commercial paper outstanding of any the investment tax Credits.
time and are available to support other company Federal and state income taxes are allocated be.
octivities.
tween operating and non-operating income and expenses. The tax effects relating to non-operating On October 10,1983 the Company replaced its $50 actisities are included in Other income - Miscello.
million loan agreement with a new $50 million revolv-neous-net.
ing loan commitment through December 7,1987. No borrowings were made under either of these agree-ments during 1983. The new ogreement is on a fee Note 2-investments:
basis of 3/16% for the unused line of credit and 5/16%
on any portions of the line of credit that are used. In included in the financial statements are S17,440,000 addition, the interest rate under this agreement on of Guaranteed Floating Rate Bank Notes owned by IPF funds borrowed is based upon the borrowing rate of x
23 t__
key banks in the London interbank market.
o weighted overage interest rate of 9 3%,13 3%, and 15.6%, respectively (calculated by dividing the interest The Company hos o $180 million three-year revolving expense during the period for such borrowings by the Icon ogreement which has o provision for conversion to overage short-term borrowings indicated above).
a three-year term loon. No borrowings were made under this og eement dur og 1983. For the unused por-Note 4-Jo. tly Owned Fac.lities:
in i
tion of thecommitment theCompanypoysononnual fee of 1/4%, portioily offset by a credit related to over-Pursuant to agreements entered into in August,1976, age balances maintained at the banks. The interest Soy and Power Cooperative, Inc. and Western Illinois rote on borrowings under this agreement is, of the Power Cooperative,Inc. have a 10.5% and a 9.5% inter-Company's option, based upon the lending banks, est, respectively, in the Clinton power station. Each prime rate, their 90-day Certificate of Deposit rate, or arty is responsible for its portion of financing and con-the borrowing rate of key banks in the London inter-struction expenditures. The Company's 80% interest in bank market' the Clinton power station including land, nuclear fuel, in addition, the Company hos a credit agreement and allowance for funds used during construction which provides for o revolving loan commitment of applicable to the Company's interest at December 31,
$125 million through December 31, 1985. The Com-1983 and 1982 was $1.8 billion and $1.5 billion, respec-pony established this agreement to support its com.
tively. The agreements include the provisions that the mitment to ininois Power Fuel Company (Fuel Com-Company has control over construction and operation pony). See " Note 7-Commitments" Fees for this of the generating station, the porties will shore electric-agreement are primarily based on 1/4% of the loan ity generated in proportion to their interests, and the commitment. Interest rates on borrowings are, of the Company will have certain obligations to provide Company's option, based upon the banks' prime rate replacement power to the Cooperatives when the or the borrowing rate at key banks in the London inter-Units are out of service.
bank market. At December 31,1983 and 1982. Fuel Company had commercial paper outstonding of
$106 million and S96 million. respectively.
Note 5-income Taxes:
The Company also has lines of credit totaling opprox-imately S44 million with commercial banks for short.
Income taxes included in the Statements of Income term bank borrowings Bank borrowings under such consist of the following components:
commitments have o maximum 360-day moturity from the time of issuance and carry on interest rate equivo.
Year Ended lent to the prime rate in effect of the time of issuance, was wo2 Mai adjusted to the prime rate in effect on the first day of each cotendor quarter thereafter. Borrowings of $33 (Thou5and5 of DoHo'5) million were made in 1983 for a 30-day period under Current taxes -
this agreement.
Inciuded in Operating E roenses and Taxes.
$ 91,907 S 62.166 $ 40.229 There were no outstanding notes payable at De-NU sE c
ne t
(24174) (19.522) (15.648 2
cember 31,1983 and 1982. At December 31,1981 Total cunent taxes.
167js3 42.644 24 581 notes payable consisted of $70.5 mil: ion in commercial De'ened taxes-poper bearing interest at on overage rote of 12.6% and Ti e'nc*,f_*Cy,'"
d n
10.713 13.284 10.672 maturing between January 4,1982 and January 29, ceda;n overhead. distnanthng 1982.
and o'her Costs captahzed-net.
11,556 7.480 9,144 The maximum aggregate amount of short-term bor-glc$ t r tion rowings at any month's end during 1983,1982,and d.tferences.
s,198 (4.178) 1.01e 1981 was $49.0 million, $105.0 million. and S70.5 million, cign un respectively. The overage daily short-term borrowings Totoi cefened taxes.
_34A28 16.586 20.832 during these Oed c/ 3roximated $28.8 million, $56 4 oetened investment tax million, and $2," %,aon, respectively (calculated as cred t-net 16.860 22.227 21.41c on overage of the daily borrowings outstonding), with
$12t02} s 81.457 $_66.832 24
ILUNOIS POV4R COMPANY / ANNUAL REPORT 1983 1
income taxes are less than the amount which would The assumed rate of return used in determining actu-be computed by applying the statutory federal and orial present value was 7%
state income tax rates to pre-tax income. the principal differences are os follows:
Note 7-Commitments:
Year Ended December 31, Ill nois Power Fuel Company, which is 50% owned by M83 M82 M81 the Company, was formed in January,1981 for the Unousanos of Dollars) purpose of financing a portion of the nuclear fuel c
d ' M"$
requirements of the Clinton power station. The Com-fe
+e ut
.ncome tax rTes.
$167,965 S117.632 5 96.066 pony entered into a lease agreement with the Fuel Reduchons Oncreases)in Company under which the Company will lease nu-mc e sNu%
c'ecr fuel. Lease payments, which will be equal to the r
0 cunng construcnen.
43.087 38.778 30371 Fuel Company's cost of fuel as consumed, will begin o'ner-net.
_(4J43) _L2 603) _(138)
Totanncome taxes.
$.1_29,021 s 8L457 s e6.833 when the Clinton power station commences pre-e QwW b WiW 6 make subordinated loans to the Fuel Company at any time the obligations of the Fuel Company which are Note 6-Pension Costs:
due and payable exceed the funds availoble to the Fuel Compa ny. The Company's investment of S50.000 is accounted for under the equity method, and the lease The Company has pension plans covering o!! officers is accounted for os on operating lease in accordance and employees. Pension costs, which are funded as with on ICC order. Had the Company accounted for accrued, include current service costs plus unfunded the nuclear fuel lease os a capital lease, both total prior service costs which are being amortized over o assets and liobilities would have been increased by period of about 25 years. Actuorial assumptions wero approximately $107 million and $97 million at Decem-revised in 1981 upon recommendations by the Com-ber 31,1983 and 1982, respectively, pony's independent actuary to reflect both octual plan experience and actuario! projections resulting in Reference should be made to "Other Construction" o decrease of opproximately S8.600.000 in unfunded in the foreport of this annual report for information prior service costs. The cost of the pension plans was concerning construction expenditures.
S8,150.000. $7,332.000, and $5.808.000 during 1983.
1982, and 1981, respectively.
Note 8-CanCelation of Clinton Following is a comparison of occumulated plan ynjg g benefits and plan net assets os of January 1, the most recent date for which the dato are available:
On October 14.1983 the Company announced the 1983 1982 concelation of Unit 2 of the Clinton power station. At
~0nour,anos of Doilors)
December 31,1983, opproximately S30.5 million of a tuanoi premnt value of accumula*ec c
construction costs and concelation chorges have Nested $.I.
$ 882s6 s 79.923 been deferred and classified as unomortized deferred Non-vested.
109_78 10.178 obondonment Costs on the balonce sheet. The Com-
$ 99,234
.S 90.101 pony will seek opproval from the ICC to recover these Net assets ovadocio for benefits.
$146367 S123.244 costs in its electric rates.
25
Note 9-Quarterly Financial Information (Unaudited):
First Quarter Second Quarter Third Quarter Fourth Quarter 1983 1982 1983 1982 1983 1982_
1983 1982 (Thousands of Dollars Except Earnings Per Common shore)
Operanng revenues.
$350,659 s340.855
$283A18
$245.517
$352.636 5245.119
$2M,546
$275.284 Operotng income.
48,012 49.775 41.097 37.913 78A56 43.365 43,235 2S 8 71 Ne' income 46,071 47.012 38A24 37.003 78,001 43 22$
44,840 29.154 N67 incorre CephCCD e to comrvn stock 40.704 42.038 32.631 32.029 71,937 38.252 38,824 24.179 Eamings per commen sh0'e.
Soc
$101 68c lic
$147 83c 78C
'.2c Quarterly earnings per common shore are bosed on weighted overage number of shores outstanding during the quarter and the sum of the quarters may not equal annual earnings per common shore. The financial results for the fourth quarter of 1983 compared to 1982 reflect the operation of the uniform purchased gasadjustment clouse implemented under order of the Illinois Commerce Commission during 1983 (see " Revenue and Energy Cost" section of Note 1 on page 22).
Note 10-Common Stock and Retained Earnings:
The Company has on Automatic Reinvestment and Stock Purchase Plan and on Employees Stock Owner-ship Plan (ESOP) for which at December 31,1983. 2.954.228 and 55.195 shores, respectively, of common stock were designated for issuance.
The Company also has a Tax Reduction Act Stock Ownership Plan (TRASOP), permitting the Company a maximum additional investment tox credit of 1% provided common stock of the Company equal in value to the additiono: credit is contr buted to the Trust. The TRASOP o!Iows on additional investment tax credit up to %%,
provided that such amount is matched by employee contributions and that common stock of the Company equal in value to the additional credit and the employee contributions is contributed to the Trust. Under this plan, 558.411 shares of common stock were designated for issuance at December 31,1983. The Company's contributions of common stock to the TRASOP for year:, otter 1983 will be based on a percentage of payroll costs in accordance with Changes in federal income tax laws.
Changes in common stock during 1983.1982. and 1981 were os follows:
1983 1982 1981 Shores Amount
- Shores Amount
- Shores Amoun1*
Batonce beg nning of year.
46.858457
$798,706 40.087,688 S6c5S21 34.507.851
$572485 PUDI C C fenngs.
4.000.000 78.120 3.000.000 48.165 f
AutomaSc Peinvestment and S?ock Purchcw Plan.
2.666.757 56A32 2.375.662 46.162 2.222.506 38.399 ESOP.
34,781 764 33.014 667 33,020 595 TRASCP.
362y1 8.097 362.093 7.836 324.311 6.077 Bolonce end of year.
49 922,166
$863.999 46.858.457 S798.706 40.087488 s665.921 1
Thou<, ands of dolars None of the Company's retained earnings at December 31,1983 was restricted with respect to the decloration or payment of dividends.
26
{
ILUNOIS POVER COMPANY / ANNUAL REPORT 1983 Note ii-Preferred and Preference Stock:
The following tabulation shows preferred and preference stock issued and outstanding of December 31,1983, 1982, and 1981, and the redemption prices (exclusive of accrued dividends) opplicable to each series.
Serlot preferred stock, cumulative. S50 por value -
Authorized and outstanding 5.000.000 shares (including 720.000 shores of redeemable preferred stock-see Note 12):
1983 1982 1981 Series Shores Redemption prices (Thousands of Dollars) 4.06%
300.000
$51.50.
$ 15,000
$ 15.000
$ 15.000 4.26%
150.000 51 50.
7,500 7.500 7.500 4.70%
200.000 51.50.
10,000 10.000 10.000 4.42%
150.000 51.50.
7,500 7.500 7.500 4.20%
180.000 52.00.
9,000 9,000 9.000
{ 52 93 pnor to August 1.1986 f.
30,000 30.000 30.000 8 24%
600.000 51.90 thereafter P"
9 f.
35,000 35.000 35.000 7.56%
700.000 {
S eo f 54 25 prior to March 1.1986 8.94%
1.000.000 q 52.90 thereafter and pnor to March 1,1991 50,000 50.000 50.000 1 51.6L 4hereafter
( 54 29 prior to August 1.1987
)
8 00%
1.000.000 J 53 29 thereafter and prior to August 1,1992
().
50,000 50.000 50.000 d 52.29 thereafter Premium on preferred stock.
1,171 1.171 1.171 Seri:1 preferred stock, cumulative without por vofue-Authorized 5.000.000 shores; 1,000.000 shores outstand;ng Series Shores Redemption prices
$51.50 of*er February 1,1988 and A'
1.000.000 poor to Febroory 1,1993 50,000 50 00 thereafter
' cl preferred stock 265,171 215.171 215.171 Preference stock, cumulative, without por value-Authonzed 5.000.000 shares; none outstanding.
Total preferred and preference stock.
__$2651_71 S215.171
$215.171 1
- R sdsemable at the option of the Company in whole or in part at any time upon notless than thirty dovs and not more than sixty days notice by publication.
- Adjustable Rote Series A issue 'on Febrvory 24,1983. Quarterly dividend rotes are determined based on market interest rates of certain U.S. Treasury sscurities. See "Two-Year Dividends and Stock Prices by Quarters"on page 30 fur the 1983 quarterly dividend rotis. The dividend rote for any dividend period willnot be less than 6% per annum nor greater than 12% per annum opplied to the liquidation preference value of S50 per shore.
Note 12-Redeemable Preferred Stock:
Th3 Company's 11.66% serial preferred stock (por value $50, 720.000 shores issued and outstanding) is subject to mandatory redemption in on amount sufficient to retire on each February 1, beginning in 1988, 19,800 shares and on February 1,2020,86,400 shores at SSO per share plus occrued dividends. After February 1, 1988 the Company hos o noncumulative option to redeem up to 19,800 additional shores in each such year.
27 t
J
Noto 13-Long-Term Debt:
Long-term debt was represented by-Cecember 31, 1983 1982 (Thousands of Dollars)
First mortgage bonds-3%% series due 1983.
S 20,000 3%% series due 1986.
20,000 20,000 11%% series due 1987.
75.000 76.000 4% series due 1988.
25,000 25.000 14%% series due 1990.
75.000 75,000 4%% series due 1993.
35,000 35,000 5.85% series due 1996.
40,000 40.000 6%% series due 1998.
25,000 25,000 6%% series due 1998.
45,000 45.000 8.35% series due 1999.
35,000 35.000 9% series due 2000.
35.000 35.000 7.60% series due 2001 35,000 35,000 7%% series due 2003.
60,000 60,000 6.60% series due 2004 (Pollution Control Series A).
8,500 8,500 9N% series due 2004.
100,000 100.000 10%% serio due 2004.
50,000 50,000 8%% series due 2006.
100,000 100.000 6% series due 2007 (Pollution Control Series B).
18,700 18.700 100,000 100,000 8%% series due 2007.
84% series due 2008.
100,000 100.000 12%% series due 2010.
50,000 50,000 75,000 75,000 12% series due 2012..
10%% series due 2013 (Pollution Control Series C).
125.000 Total first mortgage bonds.
1,232,200 1,127,200 14%% debentures duo 1989*
50,000 50.000 Long-term bank notes due 1987'*
17.000 17,000 Total 'ong-term debt.
1,299,200 1.194,200 Unamortized premium and discount on debt.
(7.645)
(7,220) 1,291,555 1,186,980 Less first mortgage bonds maturing within one year.
20.000
$1,291.555 S1,166.980
- The debentures, issued by IPF, are guaranteed as to payment of principal and interest by the Company.
- Interest rate, which is based upon the borrowing rate of key banks in the Londoninterbank market plus a margin af %%,is adjusted qua.terly and was 10%% of December 31,1983.
Certain supplemental indentures to the Mortgage and Deed of Trust require that the Company, beginning in 1985, deposit annuolly in cash as a sinking and property fund, $5,000,000 for the 9Va% series due 2004 and
$100.000, and increasing $25,000 every two years, for the 6.60% series due 2004 (Pollution Control Series A), which amounts are not subject to reduction. Certain other supplemental indentures require that the Company deposit annually in cash as a sinking and property fund amounts not to exceed $3,550,000 in 1984, S4,050,000 in 1985.
S3,850,000 in 1986, S4,850.000 in 1987, and $5,600,000 in 1988, which amounts are subject to reduction in accord-ance with certain terms of the mortgage Historicolly these requirements have been met by pledging property additions.
The above bonds are secured by a first mortgoge lien on substantially cil cf the fixed property, franchises and rights of the Company with certain minor exceptions expressly provided in the mortgage securing the bonds. The remaining balance of net bondable additions at December 31,1983 was opproximately $1,002.000,000.
28
l
\\
ILUNOIS POWER COMPANY / ANNUAL REPORT 1983 Note 14-Segments of Business:
The Company is a public utility engoged in the generation, transmission, distribution, and sole of electric energy and the distribution and sole of natural gas.
1983 1982 1981 Total Total Total Electric Gas Company Electric Gos Company Electric Gas Compony (Thousands of Dollors)
(Thousands of Dollars)
(Thousands of Dollars)
Operatir,g informaton-Operating revenues.
$ 790,588 $487471 $1,278,259 S 685.544
$421.231 $1.106.775 $ 620.968 S343.324 $ 964.292 Operating expenses.
excluding provison for income taxes.
488,930 4_25,334 914.264 456.179 389,693 845.872 419.079 325.954 745.033 Pre-tox operating income.
301,658 62.337 363,995 229.365 31.538 260.903 201,889 17.370 219.259 Allowance for funds used during Con-structon ( AFUDC).
86,231 156 86,387 78 216 193 78409 61.356 55 61411 Pre-tax operating income. including AFUDC.
$ 387,889 $ 62A93 450,382 S 307.581 0 31.731 339.312 S 263.245 S 17425 280.670 Other (income) and deductions.
(25,812)
(21A98)
(16.651)
Interest charges.
115.263 103A36 87427 Provison for income taxes.
153,195 100.979 82A81 Net income
$ 207J736
$ 156.395
$ 127413 Other informaton-Deprecioton.
$ 52,957
$ 14.068 $ 67,025 S 51.581 S 9.940 S 61.521 S 50.522 S 9.509 $ 60.031 Capito! expenditures. $ 344430 $ 15.251 $ 359A81 S 396.233 S 16.651 S 412.884 S 3304g S 19.045 S 349.515 Inestment informaton-Identif;oble assets *
$2E106 $302.840 $3,233,946 $2.651.015 S284.929 $2.935.944 $2.307.598 S285489 $2.593.087 Nonutihty piont and other investwnts.
23556 25.616 8.651 Assets ut;hzed for overofi Company operatons.
179A05 130.962 120,757 Total ossets.
_$3A36_937
$3.092.522 S2.722A95
- Utikty plant, nuclear fuel and acquisition adjustment less occumulated depreciation and amortization, materials and supplies. unomortized deferred abandonment cost, and deferred energy costs.
29
Two-Year Dividends and Stock Prices by Qu4rters The common stock is listed on the New York Stock Exchange and the Midwest Stock Exchange. The prices l below are the prices reported on the Composite Tope. The preferred stocks are listed on the New York Stock Exchange and the prices below are the prices on that Exchange.
1983 stock Prices 1982 stock Prices i
1 2
3 4
1 2
3 4
Dividends, High Low High, Low High_ Low _ HigtL LA Hjgh Low High low High Low High_ Low Common 24's 22% 2356 21% 23% 20 23% 19%
22 18% 21% 19% 224 18?a 23's 20% '
4 08% Pfd.
S.51 184 16% 18 4 17 18'i 16 18 16 144 13% 16 14 164 13% 18 15% I 4.26% Rd.
.53%
20's 18 20 % 18 19% 17 174 16 164 13 % 16 134 18 144 20 16%
4.70% Rd.
.58%
21% 19 214 184 19% 18% 19% 17%
17% 14 % 17% 16 184 16 20% 18%
4.42% Rd.
55%
19% 18's 194 18% 18% 17% 184 17 17'4 14 164 15% 18 15 194 16%
4 20% Rd.
.524 19% 174 20 18 184 17 18% 16%
15% 13% 17 15 18 144 19% 17%
8.24% Rd 1.03 374 34's 37% 33?e 36% 33 35 31 29% 24 % 32 % 28% 34 28 37 31%
7.56% Rd.
.94%
37 31 34 % 31% 32 20% 32 29 27% 244 294 25% 31 25% 334 29 8.94% Rd.
1.114 40% 36's 40% 36 38 35 374 33%
32 28% 33 % 30 364 31 394 35 8.00% Rd.
1.00 38 33 364 34% 34% 32 33 31 28 % 254 30% 274 32% 27 35% 30%
11.66% Rd.
1.45%
54 52% 544 51 53% 51 % 52 % 49 45 43 % 49 42% 48 45 % 54 % 49 Adj. Rote Pfd.
- 42% 394 46 41% 46 41%
'The amount declared in each quarter during 1982 and 1983.
- *$.62 per common shore per quarter for 1982 through third quarter 1983 and 5.66 in fourth quarter 1983.
Dividend rate changes quarterly. Rates for dividends declared in 1983 were $.80, $1.21875, $1.025, and $1.05 in the first, second, third, and fourth quarters, respectively.
There were 81.163 registered record holders of common stock at January 10,1984.
Selected Financial Data
- 1983 1982 1981 1980 1979 Total operating revenues....
$1.278,259
$1,106,775 S 964.292 S 883.370
$ 751,822 Net income...
$ 207,736 S 156,395 S 127,413 S 113.562 S 91,335 Net income opplicable to common stock.
$ 184,096 S 136.498
$ 107,516 S 94.493
$ 75.636 Earnings per common shore 3.80 3.04 S
2.84 S
2.87 2.70 Cosh dividends declared per common shore.
2.52 S
2.48 2.405 2.355 S
2.28 Total ossets.
$3,436,937
$3.092,522
$2.722,495 S2.467,191
$2.214.6E2 Long-term debt.
$1,291,555
$1.166,960
$ 971.639
$ 991.402 S 866,747 Redeemoble preferred stock.
$ 36.000
$ 36.000
$ 36.000
$ 36.000 Ratio of earnings to fixed charges" 3.56 3.04 3.16 3.25 3.15
- Thousands of dollars except earnings per common shore. cosh dividends declared per common shore and ratio of earnings to fixed charges.
'The ratio of earnings to fixed charges represents the number of times that earnings before income taxes and fixed charges cover the fixed charges. Earnings used in the calculation of the above ratios include allowance for funds used during construction and are before the deduction of income taxes and fixed charges which include interest on long. term debt, related amortization of clebt discount, premium and expense. othsr interest, and that portion of rent sapense which is estimated to be representative of the interest component.
l 30
l l
ILUNOIS POVER COMPANY / ANNUAL REPORT 1983 Supplementary Information to Disclose the Effects of Changing Prices The unoudited supplementory information presented entitled. Therefore, the excess of the cost of utility plant herein is intended to provide o perspective os to the stated in terms of constant dollars or current cost that opproximate effect of inflotion upon our Company as exceeds the historical cost of utility plant is not pres-
,a regulated utility. This information is not intended as o ently being recovered in the Company's rates, and is substitute for earnings reported on a historical cost reflected as a reduction to not recoverable cost.
basis. The information has been prepored as pre-Both the January,1983 and the July,1981 lilinois scribed by the Statement of Financial Accounting Commerce Commission rate orders considered both Stondords No. 33, Financial Reporting and Changing the " fair value" and historical cost of utility plant. How-Prices. This statement requires adjustments to historico!
ever, since the allowed depreciation was based upon costs to estimate the effects that general inflation historical cost, the need to reflect a reduction to net (Constant Dollar)and changes in specific prices (Cut-recoverable cost remains unchanged.
rent Cost) have had on the Company's results of oper-ti "S-Gain from the Decline in Purchasing Utility Plant and Depreciation Power of Net Amounts Owed For the following presentation, utility plant hos been To properly reflect the economics of rate regulation restated on both a constant dollar and a current cost in the Statement of Income Adjusted for Changing basis. Constant dollar amounts represent historical Prices, the reduction of net utility plant to net recover-Costs stated in terms of dollars of equal purchasing able cost should be offset by the gain from the deCline power os measured by the Consumer Price Index fcr oil in purchasing power of net amounts owed. During a Urban Consumers (CPI-U). Current cost amounts reflect period of inflation, holders of monetary assets (such as the changes in specific prices of plant from the date receivables) suffer o decline in general purchasing tha plant was acquired to the present and are on power because the amounts of cash received for these estimate of the cost of currently reproducing existing items in the future will purcha se less. Conversely, issuers plant. Constant and current dollor amounts d:ffer to of monetary liabilities (such as long term debt, pre-the extent that specific prices of utility plant have ferred stock ond accounts payable) experience o increased more or less rapidly than prices in general.
gain becauss future Doyments will be made with dol-The current cost of utility plant, which includes land, lors having less purchasing power. The Company hos fond rights, intangible plant, property held for future substantial amounts of debt and preferred stock and, use, construction work in progress, and nuclear fuel, therefore, for purposes of these calculations, has a net was determined by indexing surviving plant using the gain from holding monetary liabilities in excess of Handy-Whitman Index of Public Utility Construction monetary assets.
Costs. Accumulated depreciation was coiculated by applying the historical depreciation rotes to the esti-lnVentories and Taxes moted current costs of depreciable properties by year Fuel inventories, the cost of fuel used in generation, of oddition. The current year's provision for deprecia-and gas purchased for resale have not been restated tion stated in constant do!lors and current costs was from their historicol costs. Reg ulation limits the recovery determined by applying the Company's composite through the operation of adjustment clauses in basic depreciotion rates to the indexed utility plant a mounts.
rote schedules to the octual costs of fuel and pur-The increase in depreciation expense on utility plant, chased gas. For this reason, f uel inventories are consid-cstated for the effects of changing prices, represents ered monetary assets.
- he excess of depreciation expense in terms of con-As prescribed in the Statement of Financial Account-stont dollars and current cost over historical deprecio-ion expsnse ($67.0 million) used for financial state-ing Standards No. 33, income taxes were not adjusted.
Present income tax laws ignore the effects of inflation in ment purposes.
measuring toxoble income. Highei depreciation ex-P*"*"d" "S# "i d " ' "
S' Reduction to Net Recoverable Cost ing is not tax deductible. Therefore, the Company's Under the rate-making procedures prescribed by the effective federal and state income tax rate, when regulatory commissions, to which the Company is sub-odjusted for inflation, is 54.0% under constant dollar ect, the historical cost of utility plant has been re-and 57.9% under current cost for 1983 each of which flected in the rate base used in recent years to deter-exceeds the reported effective tax rate of 38.3% and ming the amount of return to which the Company is the statutory federal and state rate of 49.9%.
31
Statement of Income Adjusted for Changing Prices l
For the Year Ended l
December 31,1983 I
(
Constant Dolior Current Cost I
Average Average I
1983 Dollars 1983 Dollars (Thousands of Dollars)
Net income. as reported.
207.736 207.736 Increase in depreciation expense on utility plant as restated for the effects of changing prices.
97.936 113.846 Net income (excluding reduction to not recoverable cost)....
10980'1' 93.890 172.018 increase in specific prices (current cost) of utility plant held during the year" Less increase in cost of uhlity plant adjusted for changes in general prics level 172 244 Excess of increase in general price level over increase in specific prices...
(226)
Reduction to net recoverable cost.
(35.262)
(19.126)
(19.352)
Goin from decline in purchasing power of net omounts owed.
64.325 64.325 Net price level odjustment.
29.063 44.973
- Including the reductoon to not recoverable cost. the not gain on o sonstant dollar basis would have been appronimately $7$ mdhon for t983.
- At December 3t. I983. eurtent cost of utehty plant. net of occumulered depreenotoon. was appronomotely $4.8 bolloon. whole not hostorocol cost recoverable through depretootoon was appronomotely $3.8 kJloon.
Five-Year Comparison of Selected Supplementary Finoncial Data Adjusted for Effects of Changing Prices
- For the Years Ended December 31, 1983 1982 1981 1980 1979 Operating revenues-Historicot costs.
$ 1.278.259 $ 1.106.775 $ 964.292 $ 883.370 $ 751.822 Mjusted for general inflotion.
1,278.259 1.142.379 1.056.332 1.068.061 1.031.940 Historical cost information aqueled for general inflation income from operations (excluding reduction to net recoverable cost).
109,000 75.345 56.719 54.810 51.673 income per common shore (ofter preferred stock dividend require-ments and excluding reduction to net recoverable cost).
1.78 1.22
.92
.96 1.07 Net assets at year end at net recoverable cost.
1.119.704 1.035A53 911405 867.376 847.688 Current cost Information income from operations (excluding reduction to net recoverable cost)....
93.890 61.266 43.277 35.577 27.982 Income per common shore (ofter preferred stock dividend require-ments and excluding reduction to net recoverable cost).....
145
.91
.57
.37
.23 Excess of increase in general price level over increase in specific prices offer reduction to net recoverable cost.
19,362 4.688 174A09 184.307 240.942, Net assets of year end of net recoverable cost........
1,119.704 1.035453 911A05 867.3/6 847.688 GeneralInformation Goin from decline in purchasing power of net omounts owed.
64.325 60.580 133.694 174.071 211.150 Cash dividends declared per common shore-l Historicol cost............
232 2.48 2.405 2.355 2.28' Adjusted for generat infiction.
'2.52 2.56 2.63 2.85 3.14i Market price per common shore at year end-Historicol cost.........
20D0
. 23.75 20.625 17.88 19.16 Adjusted for general inflation.......
19A6 24.24 21.86 20.65 24.83 Average consumer price index.............
2984 289.1 2724 246.8 2174 Year-end consumer price index....................
303.5 292A 281.5 258A 2299
- In thousands of overage 1983 dollars except per shore dato and indises.
32
lLUNCKS POWER COMPANY / ANNUAL REPORT 1983 Electric Operating Statistics 1983 1982 1981 1980 1979 Revenue (%sonds c4 Donors)
Residential..
$ 289,224 S 232,066 S 209.310 S 199.124 5 160.355 Commercial.
173,925 151.167 134.968 123A63 105.262 Industdal 263455 243.016 223.950 108.177 174.315 Othar.
15,365 13.587 11.430 9.897 8.137 R; venues-ultimate consumers.
741,969 639.836 579.658 530.661 448.069 Rural cooperatives and municipal utilities.
43.926 40.648 35.826 33.236 27.79C Other efectric utilities.
3,563 66 47 68 59 Miscellaneous.
1,130 4.994 5.437 3.391 3.134
$ 790.588 S 685.544 S 620.968 S 567.356 S 479.052 Customers of End of Year R:sidential.
473,021 470.318 469,452 466.546 461.966 Commercial.
55A76 54.873 54.895 54.546 53.804 Industrial 312 348 361 359 374 Other.
716 712 718 715 714 529.525 526.251 525A26 522.166 516.858 Sales in KWH (msonds)
R:sidential.
4,076,726 3.772.690 3,741.175 4.003.563 3.737.245 Commercial.
2,575,710 2A79.246 2A49.342 2.492.930 2408.131 Industrial 6466.919 6.218.009 6.555.190 6.507A68 6.738.321 Other.
302.631 304 168 295.922 290.851 282.848 Sales-ultimate consumers.
13 A21,986 12.774.113 13.041.629 13.294.812 13.166.545 Rural cooperatives and municipal utilities.
1.274.747 1.201.814 1.169.163 1,189.702 1.057.113 Other electric utilities.
114,123 1.772 1.758 1.961 1.874 14,810.856 13.977.699 14.212.550 14A86A75 14.225.532 Generated and Purchased in KWH (Thousands)
Generated-Steam.
15,816.814 14.431,747 15.710.540 16.306.993 16.840.214 Hydro and internal combustion.
12A97 10.122 35.447 61.914 55.241 Total generated.
3,829,311 14.441,869 15.745.987 16.368.907 16.895.455 Purchased and interChonged-net.
146,608 452.761 (616A37)
(838.615) (1.666,889)
Total output.
15,975,919./ 14.894.630 15.129,550 15.530.292 15.228.566 1,165,06 [
916,931 917.000 1.043.817 1,003.034 Loss-used and unoccounted for.
14.810.856 13.977.699 14.212.550 14A86A75 14.225.532 Bystem Peck Demand in KW (Thousands)..
3.297 3.028 3.165 3.150 3.046 tirm Peak Demand (notive lood) in KW (Thousands).
3,215 2.951 3.100 3.150 3.019 4ef Generating Copabilityin KW(Thousands).
3,806 3.806 3.815 3.815 3.815 33 i
ILUNOIS POWER COMPANY / ANNUAL REPORT 1983 Gas Operating Statistics 1983 1982 1981 1980 1979 Revenues (inousands et Doitam)
Residential -without space heating.
2,609 $
2.347 $
2.372 S 2.201 $
2.056 with space heating.
225.289 189.389 156.378 142.050 124.354 Commercial-without space heating.
2,876 4.160 4.040 2.265 2.858 with space heating.
85,092 73.055 57.602 52.976 46.010 Industrial
-non-interruptible 137,961 147.446 114.944 76.743 43.714 interruptible.
28.522 3.516 6.803 31.951 51.354 Revenues -ultimate consumers.
482.349 419.913 342.139 308,186 270.346 Interdepartmental revenues-interruptible 479 281 1.074 1.825 2.365 Miscellaneous.
4.843 1.037 iii 6.003 59
$ 457.671 S 421.231 S 343.324 S 316.014 S 272.770 Customers c1 End of Year Residential -without space hecting.
11,829 12A80 13.470 16.040 18.251 with space heating.
337,270 337.011 336.504 332.695 326.816 Commercial-without space hecting.
1498 1.556 1,624 1.891 2.048 with space heating.
31,394 31.567 31.387 30.725 30.032 Industrial
-non-interrupt:ble 458 477 482 474 480 interruptible.
27 6
7 24 58 382476 383.097 383.474 381.849 377.685 Sales in Therms (Thousands)
Residential -without space heating.
2,808 3.848 4A87 5.165 6.231 with space heating.
358,947 414.062 386.282 414A05 459.329 Commercial-without space heating.
5,082 8.742 10.792 6.749 10.586 with space heating.
155.837 176.976 161,720 168.563 182.212 Industrial
-non-interruptible 281,825 394.635 363.633 280.471 194.310 interruptible.
62,167 8.716 21.183 101.935 186.264 Sales
-ultimate consumers.
866,666 1,006.979 948.097 977.288 1.038.932 Interdepartmental soles-interruptible.
1,060 801 4.360 8.853 13.141 867.726 1.007.780 952A57 986.141 1.052.073 Purchased and Produced-Therms (Thousands)
Purchased.
956,132 994,815 1.040.091 080.426 1,118.246 Storage-net of (injected) and withdrawn...
(12,628) 48.400 (48.047) 55.525 (30.203 Purchased gas delivered..
943,504 1.043.215 992.044 1,035.951 1.088.043 Produced.,
692 279 21 99 69 Total 944,196 1.043.494 992.065 1.036.050 1.088.112 Less~used ond unoccounted for.
76A70 35.714 39.608 49.909 36.039 867,726 1.007.780 952.457 986.141 1.052.073 34
Board of Directors Officers Robert J. Burow Wendell J. Kelley Consultant and Rehred Publisher cd Chormon and President The Commercial &ws Danvme. tinnos William C. Gerstner William C. Gerstner Executie Vice Presioent of the ComponV Executiva Vice Decatur. itiinos President Grover J. Hansen Charles W. Wells Consultant and Rehred President and Chief Executim Vice Operahng Officer of First Federo! Savings &
President Loon Associchon of Chcogo Chcogo. Illinos Wendell J. Kelley Larry D. Hoob Chairman and President of the Company Senior Vce Decotur. lilinos President Donald E. Lasator William E. Warren Chairman of the Board and Senior Vce Chef Executim Offcer of President Mercontde Bancorporation Inc.
(a bank hold:ng company)
St. Louis. Missoun Eva Jane Milligan ur E. Gmy Vice President and Consultant to ond Rehred Secretory Senior Vice President. General Personnel Manager of Marshall Field & Company (a retailer). President of Pro Lines. inc.
Donald P. Hall (o merchand% service organizoton)
Vee President Chicago, tilinos James O. McHood Keith R. Fotter Vee President Consultant and Retired V,ce chairman of internatonci Harvester Company Jefome P. O'Grady (manufacturer of trucks. ognculturoi. construction.
Vice President and industriot eouipment. and gas turbines)
Ecston, Mayiond Potter J.Womeldofff Boyd F. Schenk Vce President President and Chief Executie Offcer of Pet incorporated (processor and marketer of food products and otner consumer goods)
Larry F. Altenbaumer St. Louis, Missoun Treasurer Richard P. Stone Groin and Seed Form Operator Sonngfeld. Illinos John B. Burdick l
Charles W. Wells Executie Vce President of the Company Gary L. Socor Decatur. Illinois Assistant Treosurer Gordon R.Worley R: tired Executive Vce President-Chiof Financial Offcer of Montgomery Word & Co.,
Note: The principal occupation of each director incorporated (o retoi:er) and offcer of iltinois Power Company is Chicago Illinois that listed.
Vemon K.Zimmerman Dean. College of Commerce and Business Administration Uniersity of Illinois Urbono. lilinois 35
The Continuity of Leadership
% hi Allen Van Wyck, an attorney,
(-
began his association with Illinois Power predecessor companies in t
1933. He led the foundling enterprise to a sound financialcondition,facili-toting the sale of securities to start 4{
construction of the Company's first e<fa major electrical generating station A
in 1945 at Havana, Illinois.
,9 He guided the corporation in the complex divestiture of its numerous e
outside holdings, and shaped the Company to become a supplier of electricity and natural gas as its only business.
Allen Van Wyck President,1940 to 1966 Wendell J. Kelley joined the Com-Chairman of the Board,1966 to 1971 pony as an engineer immediately following graduation from the Univer-sity of Illinois in 1949. He served in variouscapacitieswith the Company prior to becoming president. Under his leadership the Company's total cssets have increased from $540 rnil-
+
m
. j, /a %N.
lion in 1966 to $3.4 billion in 1983 and
' ?,3f
its revenues from $166 million to al-most $1.3 billion.
- 'y During his presidency the number M*
of stockholders has increased from b,i\\j7 27,000 to in excess of 85,000. The a
Company also has continued its 4
dividend payment record, begun in 1947, with the 146th consecutive dividend paid on February 1,1984.
l l
Wendell J. Kelley President,1966 to 1976 Chairman and President, since 1976 36
CHICAGO l
LA SALLE HENNEPIN STATION _I f
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BLOOMINGTON HAVANA VERMILION STATION CLINTON STATION STATION b CHAMPAIGN i
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BALDWIN MT. VERNON linois Power Company e
Our Territory and Focilities LEGEND AREA SERVED FOSSIL GENERATING STATION
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BULK RATE Electricity U.S. POSTAGE r
PAID Spri.a.gfield. lL l
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