ML20112G416
| ML20112G416 | |
| Person / Time | |
|---|---|
| Site: | Callaway  |
| Issue date: | 12/31/1984 |
| From: | Cornelius W, Schnell D UNION ELECTRIC CO. |
| To: | Harold Denton Office of Nuclear Reactor Regulation |
| References | |
| ULNRC-1068, NUDOCS 8504010117 | |
| Download: ML20112G416 (43) | |
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1 i [ L I M Highlights ; l - Year Ended Annuallacrease Union Electric and Subsidiary Decenter 31,1984. Current Year . 10 Year Average (latnings per Average Common Share . . . . . . . . . . . . . . . . . . . $2.84 - . 6.8 % ' :8.6 % @vidends per Common Share' . . . . . . . . . . . . . . . . . . . . .
$1.72 3.6 - ,3.0 .
' Operating Flevenues . . . . . . . . . . . v. . . . . . . .......... . - $1,412,414,000 0.8 l 111.9'- Operating Expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $1,172,128,000 - 1.0 , ~ 12.9 b Kilowatt-Hour Sahs . . . . . . . . . . . . . . ... . . . . . . . . . . ;26,799,926,000- .3.4~ , 2.9 Gross Peak Demand (kilowatts) ^. . . . . . . . . . . . . . . . . . . . . . 6,810,000 3.2 2.6 Commercial Kilcwatt-Hour Sales ? . . . . . . . . . . . . . . . . . . . . '8,441,147,000 110.3- 14.9. Industrial Kilowatt-Hour Sales .. . . . . . . . .. . . . . . . . . . . . . . . 7,928,329,000 ' ' 6.0 1.6- -= Roperty cnd Plant (gross)-Year End .. . . . . . . . . . . . . . . . . . . :86,563,248,000 - 12.0 ' 10.6 ' Capitalization Provided by investors . . . . . . . . . . . . . . . . . . 84,717,037,000 '12.3 10.4 i i L
- Service Aten Union Electric is primarily engaged in supplying electric service for the
- strategiccenterof America-a
- 24,000squaremileareainMissouri, lilinois and lowa.
- a Fossil
[ . + 1 Nuclear - l- e ' Hydro-l JA fPumpAd-Stora0e
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### @ M HBig M s g 984 was a year of major progress for Union Electric-a year in which the strength of the Company was 1 displayed in a series of significant events.
At the top of the year's accomplishments was the successful completion of the most complex construction project ever undertaken by the Company. We completed the preoperational tests at our Callaway Plant with performance records as fine as any in the country and the plant became fully operational in December. To date, Callaway has generated two billion kilowatt-hours of electricity representing fuel savings of $18 million compared to the cost of coal to generate that amount of power. The $3 billion cost of constructing Callaway was among the lowest of similar plants built during the same period. The plant was built to the most exacting quality standards and we are confident that it will provide a reliable and economical source of power. he most dramatic event in 1984 was the overwhelming defeat by Missouri voters of Proposition B, Ta deceptive measure that threatened to shut down the Callaway Plant. We many shareholders, employees and community leaders who worked in the successful campaign. Earnings on common stock for 1984 were $2.84 per share, an increase of 18 cents over 1983. Kilowatt-hour sales increased 3 percent over 1983 with strong growth in both the commercial and industrial sectors. Our 1984 summer peak demand was 3 percent higher than the record set in the previous year. Common stock dividends of $1.72 per share were paid during 1984. As explained later in this report, a substantial portion of the common stock dividend is not taxable as dividend income. With the completion of Callaway and the corresponding reduction in construction expenditures, Union Electric's financial strength should improve. We intend to meet our financial objectives by seeking rates that provide a fair retum to our investors, by improving the efficiency of our operations, and by marketing energy in ways that will improve the utilization of our facilities. Union Electric's rates are now among the lowest in the country and they will remain below the national average after decisions are received on the rate requests associated with our investment in Callaway. Included in our pending rate requests are proposals to phase-in the new rates over five years to lessen the impact on our customers. This is one way in which we are working toward the goal of assisting our customers in meeting their energy requirements in the most practical, efficient and economical manner. e intend to continue to provide our customers with a reliable source of electricity. We plan to do this in Wa manner that will minimize the need for large investments in new power pla committed to conservation and will continue our efforts in that area. We believe conservation provides benefits to the Company as well as to our customers. We also believe there is potential in load management through expansion of interruptible service, more off peak use, load scheduling and other techniques. There aie two benefits from load management. It enables us to minimize our investment in new facilities and, equally important, to make better use of our existing facilities. Finally, we are supporting research efforts to develop new ways to generate electricity and to improve the perfarmance of existing plants. 2
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I l ur goal is to avoid adding new capacity at least until the mid 1990s, and then, only if the climate for Dlong-term investment in our service area permits it. We are still interested in growth in the use of electricity but we plan to be selective in the type of growth we pursue. Electric heat falls within this category. We will continue to improve our share of the market in this very important part of our business. We've done very well in electric heating for apartments and commercial buildings but there is still a large potential to be realized in the market for single family homes. As we strive to accomplish our goals, we do so with a strong legacy left to us by Charles J. Dougherty, who , retired as Chairman and Chief Executive Officer last May 1. Mr. Dougherty put in place the organization that is responsible for the accomplishments of this past year and we are fortunate that he continues to serve as a l member of the Company's Board of Directors. Looking to the future, we have a well-designed and well-maintained L system that should provide an efficient and economic source of energy for years to come. We have a good mix of residential, commercial and industrial customers, which reflects the diversity ! of our service area's economy. The / l continued growth of our electric ; heating business will enable us to use ! our power plants more efficiently. l We realize that the social and political l forces we have to deal with today are ( different than they were in the past and that they require us to take new # l approaches to our business. We have a l qualified and dedicated management l and employee team that has the ability % ; to accomplish the tasks at hand. - i I [O
- I William E Camelius President and Chief Executive Officer l
February 15.1985
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- customers' needs, and provide for growth in the use of electricity.
The impact of changing regulatory requirements and rampant inflation on the cost and construction schedules of nuclear power plants has been well documented. Callaway Plant was not immune to these forces. However, when compared to similar plants constructed during the same time frame, Callaway is reat only below average 1 in cost, but its construction was accomplished in two years less time. This record is a tribute to the thousands of men and women who participated in the largest, most complex construction project ever undertaken by the Company.
*Nuckar Reguldfoty Commissson (Atomm Energy Commisstorv befor91975) ,
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, ARssowl. Ten mNes southeast of ' :waterreactw capaNe ofprovdng i BechtelPuner Corporation nos thei m '+
. Funart 25 naiiss northeast of L .g , steam to generate 1,150 megawatts larcNtect-engineer; Mestinghouse b l ,
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y ,._, _ - - ,_7- __ _ m -- _ _ _ - _ - . - -- - ~ u N $!ll$ 0y? jjiWlQ Q Earnings, Dividendsincrease Residential kilowatt-hour sales in rate phase-in plan that would Eamiags on common stock in 1984 1984 were 2 percent below 1983. lessen the impact of the rate were $2.84 per share, an increase This slight decline in residential incr3ase on the Company's cus-of 18 cents over the $2.66 per sales resulted from near-normal tomers by spreading the increase share earned in the previous year. Summer temperatures in 1984, as over a five-year period. Pursuant t@ increased sales of electricity in the compared to an extremely hot the Company's phase-in proposal, commercial and industrial sectors 1983 summer. $12.5 million of the wholesale rate were a major factor contributing to Despite the absence of sustained request went into effect in mid-the improved eamings. high summer temperatures in 1984, January 1985. This increase is Union Electric's peak demand subject to refund, depending on tM The common stock dividend for the reached an all-time record of Federal Energy Regulatory year was $1.72 per share, marking 6,810,000 kilowatts on August 29. Commission's decision following the ninth consecutive year in hearings, scheduled to begin in April which dividends paid were greater than in the previous year. System Reliab//ity in January 1985, the Missouri Comq System reliability continued to be pission granted an $18.9 million Under the Intemal Revenue Code' outstanding during 1984. The ability increase to cover increased costs 55 percent of 1984 common toprovide ahighlevelof dependable not related to the Callaway Plant. dividends in the first guarter and service to our customers is due, Hearings on the Callaway portion 85 percent in each of the second' in large part, to the Company's of the request, which amounted to third and fourth quarters are con. state-of the-art service restoratior more than 90 percent of the $639 sidered a return of capital and' system. Built around a sophisticate'd pillion increase, were conc.uded l therefore, are not taxable as divi. computer program, the system in December and it is anticipated dend income. This equals an makes it possible to restore elec. that an order will be issued before annualized non-taxable rate of the end of the first quarter of 1985. 77% percent for common stock tric service quickly, to monitor shareholders whose holdings were substations and to correct potential A decision from the Illinois Com-constant throughout the year. problems betore extensive damage mission is expected soon after the' occurs. Pertinent information on Missouri order, and it is anticipated' Preferred stock dividends are 100 percent taxable. the distribution facilities serving that an intenm increase will be most of the Company's customers grantedinIowa within 90 days aftet is maintained in an on-line computer the Company files a request which Commercial, /ndustr/a/ Sales . file, contributing to an efficient is planned for the second quarter Increase lSummerPeak #its New #Igh trouble analysis program. of 1985. Kilowatt-hour sales in 1984 in- le Request Decisl003 This esperimentalpiece at equipment . Creased for the seCond Consecutive ected bring Ea# % is pan ola joint research project at year and a new summer peak In February 1984, the Company filed the Ele:tric Power Research institute demand 3 percent higher than the ' velop hener methods orreplacIns a $639 million rateincrease request record set in 1983 was established. ""de'8'8""# C'8,,- with the Missouri Public Service J A 3 percent gain in kilowatt-hour sales was directly related to excel-Commission and a $78 mHHon request with the Illinois Commerce ((g
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lent growth in both the commercial and industrial sectors and reflects the continued economic recoveryin Commission to begin recovering costs associated with the con- {F 4dhg - most parts of the Company's struction and operation of the y service area. Commercial sales Callaway Plant. A $37 million g were up 10 pcrcent and industrial sales registered a 6 percent increase mauest for adddonal mvenues from wholesale customers was N 4-y filed with the Federal Energy ~' over 1983. ' Regulatory Commission in July. These requests include a proposed e 6
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c-_ - w w ~ a _ ._ -__ l Dividend ReInvestmentPlan In addition to the $54 million raised EnergyWise, a program for senior Attracts Stockholders through the Dividend Reinvestment citizens which provides information During 1984, $54 million of equity Plan in 1984, the Company raised on low-cost /no-cost approaches capital was raised through the $367.5 million from the following to home weatherization; i Company's Dividend Reinvestment sources: . The National Residential Con-and Stock Purchase Plan, bringing $60 million in March from a six- servation Program which provides the total raised through the Plan year, $375 million revolving low-cost home energy audits since 1976 to approximately credit agreement with domestic upon customer request; ;
$223 million. Participants in the banks; . Low-cost insulation financing to '
Plan at year-end numbered 62.721 $160 million in June from a tax- residential customers (more than - l or 34 percent of all holders of exempt. 30-year, Missouri En- 68,800 insulation installations , common stock. Participants vironmentallmprovement Revenue since 1977); l include approximately 13 percent Bond issue; . Dollar More, a program initiated of our preferred stockholders and
$50 million in July from a six- two years ago to encourage some 6,000 of our customers who
, year, $200 million revolving credit customers to give to a fund that had not previously been stockholders, i agreement with foreign banks; helps pay utility bills for the needy,
"' elderly and handicapped; oe1 ilio ne shares of $50 million in October from the foreign bank credit agreement; and Project Comfort / Safe Homes for '
common stock have been issued
$47.5 million in December from Kids, a private /public partnership i to participants Which r vid s fo h in llation j The Economic Recovery Tax Act of {ta e mpt year Missouri ,,
j, 1981 allows exclusion from taxabl heated residential rental units in income of an aggregate of $750 Revenue Bond issue-St. Louis City and Ccunty; and 4 annually ($1.500 in the case of joint I Company Supports Programs Energy Aid Grants far weathen.- returns) of dividends reinvested in . To Aid Customers zation projects outside metropolitan common stock of qualified utilities. This provision is effective through in Using Energy E//iciently St. Louis. 1985. Union Electric programs to aid customers include: ' Construction Expenditures ._ Will Decline Substantially Construction expenditures in 1984 totaled $706 million, including - 4y
$317 million of allowance for funds used during construction. Comple-j ,
v tion of construction at the Callaway Plant accounted for $583 million . Of the total. Over the next five years, construc-tion expenditures are expected to decrease substantially and should average about $200 million annually. Internal generation of funds for ! construction during this period ! should improve significantly. unlike ,- the recent period when the 53 billion rtie everincreasing use orne required for Callaway construction electricat equipment contribute was financed almost entirely trom to a continuallyimproving standa the sale of securitics and bank loans. ofI/ving tbr our customers-
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Our customers used l l. 109109.000 kilowatt hours of electricity the largest daily amount recorded by r the Company in the -
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. _ __ m = __ u l _ fr2_l- _a % _ . .e m i w ~ Use af flectric # eat In downtown St. Louis, develop- asit did in the Company's Lakesidt Continues to Grow ment began on the Gateway Mall, District in central Missouri. At year-end, the electric heating the first stage of which will In St. Charles County, Missouri, load connectej to the Union Electric include a 15-story office building. where the new General Motors system was 2.9 million kilowatts, Construction continued on South- automotive assembly plant began up more than 7 percent from 1983. western Bell Telephone s 44-story production in late 1983, growth During the year, electric heat was office tower, which is scheduled was also strong and approximately installed in 64 percent of all new to open in 1985. St. Louis Centre, 1,000 new customers were added commercial ar d i.1dustrial buildings, a $120 million retail mall with a in our Wentzville District. 31 percent of all new single resi. 21-story office tower, and the in other parts of Union Electric's dential units and 10 percent of al $135 million renovation of Union service area, Shell Oil Company is new apartmen:s in the Company's Station also are scheduled for modernizing operations in Wood service area. More than 10,000 completion in 1985. Construction River, Illinois and construction residential heEting units were was started on Edison Brothers continues on the Lock and Dam 2f Stores new headquarters and the added to Union Electric's lines in project near Alton, Illinois. A new 1984, bringing the number of Adam s Mark Hotel durir,g 1984.
$50 million animalfood supplemen residential customers heating their Housing development continued at plant began operating during 1984 homes electrically to approximately a strong pace in St. Louis County in Cape Girardeau, Missouri.
131,000. More than 19,800 com-mercial and industrial structures switchya used electric heat during the year. eplemer Continued growth in the use of snuts electricity for heating enables the C'*##"# Company to utilize, during the winter #'"'
, he months, facilities which were built 3f,3.,,ff_
primarily to meet the high demands transmis-of the summer air conditioning load. __ system. Construction Activity Reflects Econornic Recovery In most parts of the Company's service area, residential and commercial building activity was strong and the industrial sector , showed signs of recovery. M. West St. Louis County continues ! to grow at a rapid pace, with a number of major projects either under construction or being / planned. Monsanto Company's new 6 / :
$150 million Life Science Research Center, which will /
employ about 1,200 scientists / and research workers by 1987,is indicative of the St. Louis area's mo/e toward a high-technology economy. McDonnell Douglas Corporation continues to con-tribute substantially to growth in I this field. to
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Steam Neat Facilities Sold Company's system on a trial basis, will be replaced with non-PCB in December 1984, the Company is a cable follower which makes it equipment in 1985,with the balance discontinued providing steam heat. possible to mstall new cable as scheduled for replacement during ing service in downtown St. Louis. Old cable is being removed and to the following three years. Until the At that time, the Company's steam reduce the size of the excavation late 1970s, when PCBs were loop was sold to the Bi-State at the beginning and end of the banned, they were commonly used Development Agency and the Ashley cable run. as cooling liquids in transformers PlantwassoldtoThermalResources This is one of the many projects and other electrical equipment. of St. Louis, Inc. Bi-State intends funded through EPRI, of which to construct a trash-to-energy Union Electric has been a member William E. Cornelius facility which would help solve the for more than 10 years. The Com. Elected CE0lOther Executive trash disposal problems in the City pany's contribution,which was $4.7 Changes Made of St. Louis. million in 1984, makes it possible William E. Cornelius, who was for Union Electric and the approxi- elected President in 1980, was Sioux Plant mately 500 other utility members elected Chief Executive Officer to Bottom Ash Sold of EPRI to pool research and succeed Charles J. Dougherty. More than 100,000 tons of bottom development funds and benefit Mr. Doucherty, who had been Chief ash from the Company's Sioux Plant from extensive R&D efforts which Executive Officer of the Company would be far beyond the financial since 1968, retired effective were sold during 1984toacompany which processes the ash for use capability of a single company. May 1,1984. as blasting grit and in the manu- H. Clyde Allen, Vice President-facture of roofing shingles. The Technology for Burning PCBs Research. retired during the year. sale of bottom ash provided a Earns Recognition for Company Elected Vice Presidents in April means for extending ash pond in January 1984, Union Electric were: James J. Beisman, Public storage life as well as resource received a Missouri Department of Relations; Charles A. Bremer, recovery. Natural Resources 1983 Resource Supply Service, Herbert W. Loch, Steward Award for the use of an Employee Relations; and H. G. R&O Pro /ect Seeks to Reduce innovative technology for the Meyer, Computer Services. Cable Replacement Costs destruction of PCBs (polychlorinated Union Electric engineers have biphenyls) and the recovery of actively participated in a research energy from the waste. The process, project funded by the Electric Power whichincludes mixing contaminated Research Institute (EPRI) to inves. Oil to a level c,ontaining 5 percent tigate new tools designed to reduce PCBs and incmerating the mixture at temperatures in excess of 2,400 underground cable replacement degrees Fahrenheit, was approved costs and minimize damage to . by the regional admimstrator of the lawns and landscaping. One of the tools, which has been used on the Environmental Protection Agencyin January 1983. By November 1984 Union Electric had completed its 20th bum of PCBs at the Labadie Plant. As part of the ongoing program to reduce the amount of PCB equip-ment in use, engineering studies needed to implement replacement of allline capacitors containing PCB fluids are under way. Twenty percent of these capacitor cells 12
r P .{ a_ j ifQQ(([lbf [ApV$ Qiifl?y . 1 Consolidated Statement Of Income (inousands of ooiiarsi l )nion Electric and Subsidiary Year 1984 Year 1983 Year 1982 lperating Revenues (*): Electric . S1,292,086 $1,281,154 $1,111,855 Gas 108,600 104,899 90,213 Other 11,728 15.033 15.637 Total operating revenues 1,412,414 1,401,086 1,217,705 lperating Expenses: Operations Fuel and purchased power 440,821 437,579 372,632 Other. 251,941 259,536 230,751 692,762 697,115 603,383 Maintenance 106,368 99,395 100,223 Depreciation. 101,550 92,297 86,670 Income taxes 143,820 140,111 97.967 Other taxes (*) 127,628 131,898 124.811 Total operating expenses 1,172,128 1,160,816 1,013,054 lperating income 240,286 240,270 204.651 Ither income: Allowance for equity funds used during construction . 179,634 135,707 93,858 Miscellaneous, net . 1,517 3,490 3,660 Total other income 181,151 139,137 97,518 mcome Before Interest Charges 421,437 379,467 302,169 mterest Charges: Interest on debt 247,308 218,530 200,554 Allowance for borrowed funds used during construction . . (150,035) (115,600) (104,235) Net interest charges 97,273 102,930 96,319 let income 324,164 276,537 205,850
' referred Stock Dividends 50,185 46.118 40.344 !arnings on Common Stock S 273,979 $ 230,419 $ 165,506 lincludes hcense and franchise taxes of $68.172,000. $69.682,000 and $61,002.000 for the years 1984,1983 and 1982, respectively. !arnings per Share of Common Stock (based on average shares outstanding) S2.84 $2.66 $2.17 lividends per Share of Common Stock SI.72 $1.66 $1.58 Lverage Number of Common Shares Outstanding 96,574,699 86,744,282 76.251,024 lcc Notes to Financial Statements on pages <L 2J. 24 and 26 13
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December 31, December 31,! Union Electric and Subsidiary 1984 1983' Assets Property and Plant, at original cost: Electric. . . . . . . S3,322,193 $3.231,495 Gas . . . .. 81,368 77,326 Other . . . 28,196 37,200 3,431,757 3,346,021 Less accumulated depreciation . . . 1,130,621 1,062,761 2,301,136 2,283,256 Construction work in progress: Callaway nuclear plant . ..... . .. . 2,957,233 2,374,392 Nuclear fuel . . ... . . . .. 236,494 188 106 Settlement of uranium litigation . . . . . . . (116,224) (10i.260 Other . ... . ... . . . 53,988 51.998 Total property and plant. net 5,432,627 4.795,781 investments, at cost 6,528 6,354 Deferred Charges: Callaway unit 2 construction abandonment . . . . . . . . . . . . 79,657 82,394 Unamortized bond defeasance cost . . . . . . . . . . . . . . . . 4,075 4,271 Unamortized debt expense . . . . ... . . . . .. 4,828 4,542 Other ........ .. . . ... .. 9,222 3,124 Total deferred charges 97,782 94,330 Current Assets: Cash .... ... ... ............ . . . 1,669 7,216 Deposits for payment of interest and other deposits . . . . . . 10,023 10.272 Accounts receivable-trade (less allowance for doubtful accounts of $2,294 and $2.681, at respective dates) . 93,039 95,579 Unbilled revenue . . . . . .. . .. . . 70,816 73.876 Other accounts and notes receivable . . . . ... .... . 14,194 4,927 Materials and supplies, at average cost-Fuel. .. ..... ... . .. .. .. . 87,753 73.889 Construction and maintenance. . . . .... . .. 58,148 37.947 Prepayments and other assets . . . 6,112 5.377 Total current assets 341,754 309.083 Total Assets SS,878,691 $5.205,556 See Notes to Financial Statements on pages 22, 23. 24 and 25 14
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nn ,- . . ~ . nz , ~ , . - _.-- ~ ~n-u~.w-, a .-_.-au- --- ~ a,~.- ~.~.- - . ~ . - - - _ _ December 31, December 31, Union Electric and Subsidiary 1984 1983 Capital And Liabilities Capitalization: Common stock and Common stock, $5 par value, authorized retained earnings 150,000,000 shares; outstanding 99,154,610 and 94,690,220 shares, at respective dates (excluding 42,990 shares at par value in treasury) . S 495,773 $ 473,451 Other paid-in capital, principally premium on common stock (see accompanying statement) 675,934 637,039 Retained eamings (see accompanying statement) . 552,743 445.011 Total common shareholders' equity 1,724,450 1,555,501 Preference stock Preference stock, $1 par value (entitled to cumulative dividends), authorized 7,500,000 shares -none outstanding Preferred stock Preferred stock not subject to mandatory redemption, including $1,486 premium (see accompanying statement). 356,270 356,270 Preferred stock subject to mandatory redemption (see accompanying statement). 178,936 180,962 Long-term debt Long-term debt (see accompanying statement) . 2,466,164 2,113,181 Unamortized discount and premium on debt . . (8,783) (5,134) Total capitalization 4,717,037 4.200,780 Accumulated Deferred Taxes on income 609,663 408,171 Accumulated Deferred Investment Tax Credits 123,749 164,468 Construction Commitments and Contingencies (Notes 8 and 9) Current Liabilities: Current maturity of long-term debt 65,993 10,728 Accounts payable . 112,403 154.053 Wages payable . .. 22,482 20,608 Callaway unit 2 cancellation charges 24,089 41,885 Bank loans 51,000 31,500 Income taxes accrued 24,541 41,281 Other taxes accrued . 15,055 15,620 Interest accrued . . 65,821 63,755 Dividends declared . 12,499 12,512 Other current liabilities 34,359 39,295 Total current liabilities 428,242 432.137 Total Capital and Liabilities $5,878,691 $5,205,556 15
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n , .aaa -. _ .a =w :- +._._ .uu- ma c ==- .. l 1 Long-Term Debt ghousands of Donars) j December 31, December 31,' Union Electric and Subsidiary 1984 1983 Union Electric Company First mortgage bonds 3%% Series due 1986 S 40,000 $ 40,000
-note (a) 14%% Series due 1986 4,000 4,000 16% Series due 1987 5,500 5,500 4h% Series due 1988 3,000 3,000 4%% Series due 1988 35,000 35,000 4%% Series due 1990 50,000 50,000 11%% Series due 1990-note (b). 2,900 3,200 4%% Series due 1991 30,000 30,000 5% Series due 1991 2,000 2,000 5%% Series due 1991 3,500 3,500 15%% Series due 1991 150,000 150,000 4%% Series due 1992 6,000 6,000 15% Series due 1992 125,000 125,000 4%% Series due 1993 30,000 30,000 10%% Series due 1994-note (b). 4,480 4,900 4%% Series due 1995 35,000 35,000 4%% Series due 1995 3,000 3.000 Sh% Series due 1996 30,000 30,000 5%% Series due 1996 5,000 5,000 8%% Series due 1996 10,000 10,000 Sh% Series due 1997 40,000 40,000 5%% Series due 1997 5,000 5,000 7% Series due 1998 50,000 50,000 7.95% Series due 1998 4,000 4,000 7%% Series due 1999 35,000 35,000 8% Series due 1999 5,000 5,000 8%% Series due 1999 40,000 40,000 9.95% Series due 1999-note (b). 100,000 100,000 9% Series duc 2000 60,000 60,000 7h% Series duc 2001 50,000 50,000 7%% Series due 2001 50,000 50.000 8%% Series due 2001 60,000 60,000 9%% Series due 2001-note (b). 4,800 5,100 2,782 2,956 9%% Series due 2001 -note (b).
9,600 10,200 9%% Series duc 2001-note (b). 8b% Series due 2002-note (b). 5,100 5,400 7%% Series due 2003 7,000 7,000 8%% Series due 2004 70,000 70,000 10 % Series duc 2004-note (b). 9,500 10.000 70,000 70,000 10%% Series due 2005 5.80% Series due 1992 to 2005-note (c) . 27,085 27.085 70,000 70,000 8h% Series due 2006 60,000 60,000 8%% Series due 2007 9 35% Series duc 2008-note (b). 55,000 55,000 9 25-9625% Series duc 2000 to 2010-note (c) 60,000 60.000 13% Series duc 2013 100,000 100.000 16
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December 31, December 31 Union Electric and Subsidiary 1984 1983 Union Electric Company (continued): Unsecured loans-Foreign bank agreement Due 1986 to 1988-note (d) S 100,000 $ - Domestic credit agreement Due 1987 to 1988-note (e) 275,000 215.000 Unsecured notes- 21 % Series due 1985. 7 6% Series due 1992-note (f) 1,820 1.925 Missouri environmental improvement-Revenue notes 7%% Series due 1985. . .
- 20,000 10 % Series due 1986. . . .
45,000 45,000 Revenue bonds 5.60-6.20% Series due 1989 to 2004 . 16,500 16,500 8%% Series A due 2014-note (g) . . 80,000 - 8%% Series B due 2014-note (g) 80,000 - 7%% Series C due 2014-note (h) . . 47,500 - Nuclear fuellease-note (i) . . . 195,965 187.772 Union Colliery Company Secured note-note 0) 9% Due 1999 132 136 Long-term debt S2,466,164 $2,113.181 (a) At December 31.1984. substantially all of the property and plant was mortgaged under, and subject to tiens of, the respective indentures pursuant to which the bonds were issued. (b) To be retired by sinking fund-11%% Series to 1989.10k% Senes to 1993. 9 95% Series from 1986 to 1998; 9h% Senes to 2000; each 9%% Senes to 2000; 84% Series to 2001; 10% Series from 1985 to 2003, and 9 35% Series from 1989 to 2007. (c) Environmental Imptovement Series. (d) Credit agreement with certain foreign banks which permits the Company to borrow up to $200 million through mid-July 1985. on which interest rates will vary depending on market conditions and the Company's selection of vanous options under the agreement. At December 31,1984. $100 million of such foreign borrnwings were outstanding at an average annual interest rate of 9%% based on 30-day London Interbank Offered Rate (LIBOR). (c) Credit agreement with certain domestic banks which permits the Company to borrow up to $375 million thr00gh mid-July 1985. on which interest rates will vary depending on market conditions and the Company's selection of various options under the agreement. At December 31.1984. $275 million of such domestic borrowings were outstandir.g at an average annual interest rate of 10.17%, based on 60-day Certificate of Deposit rates. (f) Notes due in equal annual installments to 1991. (g) Adjustable-fixed rate, currently beanng interest at 8k% per annum through May 31.1987; thereafter, interest rates will depend on market conditions and the Company's option to select an adjusted rate for each annual period or a fixed rate until maturity. (h) Adjustable-fixed rate. currently bearing interest at 7%% per annum through February 28,1986; thereafter, interest rates will depend on market conditions and the Company's option to select an adjusted rate for each annual penod or a fixed rate until matunty (i) At December 31.1984. $43 million is included under current matunty of long-term dcbt. (j) Note due in equal monthly installments. (k) Union Electric Company has an intermediate term credit agreement with certain foreign banks which permits the Company to borrow up to $40 milkon through December 1987. At December 31,1984 none of such foreign borrowings were outstanding. See Notes to Financial Statements on pages 22, 23 24 and 25 17
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- d M Preferred Stock <inousands of ooiiarsi December 31, December 31, Union Electric and Subsidiary 1984 1983 Preferred Stock not subject CD mandatory redemption:
Preferred stock outstanding. Stated value of $100 per share-tithout par value $7.44 Series-550,000 shares S 55,000 $ 55,000 (entitled to $6.40 Series-300,000 shares 30,000 30,000 cumulative dividends) $5.50 SeriesA-14,000 shares 1,400 1,400
-note (a) $5.50 SeriesB- 3,000 shares 300 300 54.75 Series- 20,000 shares 2,000 2,000
$4.56 Series-200,000 shares 20,000 20,000
$4.50 Series-213,595 shares 21,359 21,359
$4.30 Series- 40,000 shares 4,000 4,000
$4.00 Series-150,000 shares 15,000 15,000
$3.70 Series- 40,000 shares 4,000 4,000
$3.50 Series-130,000 shares 13,000 13,000 Stated value of $97.50 per share-
$8.00 Series of 1971-425,000 shares . 41,437 41,437 Stated value of $92.25 per share-
$8.00 Series-350,000 shares 32,288 32,288 Stated value of $25 per share-
$2.98 Series-3,000,000 shares 75,000 75,000
$2.125 Series-1.600.000 shares 40,000 40.000 Total preferred stock not subject to mandatory redemption S354,784 $354,784 Preferred Stock subject CD mandatory redemption:
Preferred stock outstanding, Stated value of $100 per share-tithout par value $6.30 Series-9,360 and 9,620 shares at (nntitled to respective dates, due to 2020-note (b) S 936 $ 962 cumulative dividends) Stated value of $50 per share-
-note (a) $4.60 Series-1,500,000 shares due 1985 to 2004. 75,000 75,000 Stated value of $25 per share-
$4.00 Series of 1982-3.000,000 shares due 1988 to 2007-note (c) . . 75,000 75.000
$2.72 Series-1,120,000 and 1,200,000 shares at respective dates. due to 1998-note (d) 28,000 30.000 Total preferred stock subject to mandatory redemption $178,936 $180,962 (a) Authorized Union Electnc Company total preferred stock-25.000.000 shares (b) The Company is required to retire 260 shares at $100 per share on June 1 of each year (ci To be retired by smking fund (d) The Company is required to rctne 80000 shares and has an option to redeem an additional 80 000 shares at $25 per share on November 15 of each year.
See Notes to Financial Statements on pages 22. 23. 24 and 25 18
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m mm , o m mm m m. um_: Consolidated Statement Of Retained Earnings anousands os no\lars) Union Electric and Subsidiary Year 1984 Year 1983 Year 1982 Balance at Beginning of Period . . S445,011 $364,771 $324,547 Add: Net income . 324,164 276,537 205,850 769,175 641,308 530,397 Deduct: Preferred stock dividends * . 50,158 47,273 41,817 Common stock cash dividends-$1.72,
$1.66 and $1.58 per share, respectively . 166,274 145,748 120.203 Write-off of capital stock expense . - 3,276 3,606 216,432 196.297 165,626 Balance at Close of Period (Under the mortgage indentures of the Company, as amended, free and unrestricted retained earnings at December 31,1984 amounted to
$495,628) S552,743 $445.011 $364.771
- Includes dividends declared, apphcable to subsequent periods.
M Consolidated Statement Of Other Paid In Capitalanousands at vol\ars> Union Electric and Subsidiary Year 1984 Year 1983 Year 1982 Balance at Beginning of Period . . S637,039 $541,222 $464,450 Excess of sales price over par value of l Add: 6,000,000 and 6,500,000 l i shares of common stock issued in 1983 and 1982, respectively . . - 56,550 53,137 Excess of sales price over par value of 3,968,640,3,898,752 and 3,157,794 ' shares of common stock issued during 1984,1983 and 1982, respectively, for dividend reinvestment and stock purchase plan .. 34,293 35,301 23,313 Excess of sales price over par value of 495,750 and 377,789 shares of common stock issued for employee stock ownership plan in 1984 and 1983, respectively . 4,530 3,780 - Excess of stated value over purchase price of 80,000 shares of preferred stock redeemed in each of the years 1984,1983 and 1982. . . . . 239 101 322 Premium on preferred stock of forraer l subsidiary company . 85 - Write-off of capital stock expense . (167) - - S675,934 $637,039 $541,222 l Balance at Close of Period i See Notes to noancial Statements on pages 22. 23. 24 and 25 19
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Consolidated Statement Of Changes In Financial Position trnousanos at oonars) Union Electric and Subsidiary Year 1984 Year 1983 Year 1982 Source of Funds: From operations-Net income . . S324,164 $276,537 $205,850 Depreciation 101,550 92,297 86,670 Deferred taxes on income (net) 201,492 79.591 90.427 Deferred investment tax credits (net) (40,719) 42,251 (3,073 Allowance for all funds used during construction . (329,669) (251,307) (198,093 256,818 239.369 181,781 From financing and other sources-Issue of mortgage bonds - 100,000 130,500 Issue of long-term unsecured debt. 367,500 40,000 295,032 Nuclear fuellease . 51,482 18,512 37,833 Issue of preferred stock. - 75,000 75,000 Issue of common stock . .. 86,550 85,638 Dividend reinvestment / stock purchase plans . 61,146 60,463 39,102 Settlement of uranium litigation 14,261 12,556 12,879 Additional short-term debt . . . 19,500 - - Net decreased working capital (excluding short-term debt and current maturities) . - 87,579 42,704 513,889 480.660 718.688 Total funds provided S770,707 $720.029 $900.46@ Application of Funds: Gross plant expenditures . S706,379 $686,029 $628,343 Nuclear fuel . 48,388 18.553 38,062 Allowance for all funds used during construction . (329,669) (251,307) (198,093 Dividends on preferred and common stock . 216,432 193,021 162,02@ Restructured long-term unsecured debt - 40,000 175,000 Maturity of mortgage bonds . 10,728 2,223 36,899 Redemption of preferred stock 2,026 2,026 2,026 Reduced short-term debt . .. .
- 35,600 53,250 Net increased working capital (excluding short-term debt and current maturities). 111,331 - -
Net change in other funds . 5,092 (6.116) 2.962 Total funds applied S770,707 $720.029 $900.46B Increases (Decreases)in Cash and deposits S (5,796) $ (19,722) $ (7,690 Working Capital: Receivables, net . 3,667 28,089 10,797 Fuel. . . . 13,864 (25.117) 16,696; Other materials arid supplies 20,201 759 (852 Accounts and wages payable . 40,676 (38,352) (45,64R Cancellation charges .. 17,796 4,084 6,031l Taxes accrued . 17,305 (14.695) (10,233' interest and dividends accrued or declared . (2,053) (19.318) (5,903 Other. 5,671 (3.307) (5.904 Net change in working capital S111,331 $ (87.579) $ (42.704 See Notes to financial Statements on pages 22. 23 24 and 25 20
e a= __ :a = . ._ _u _ ___ _ Responsibility For Financial Statements The management of Union Electric Company is responsible for Written policies and procedures have been developed and are the information and represcatations contained in the financial revised as necessary. The Company maintains and supports an statements and in other sections of this Annual Report. The extensive program of intemal audits with appropriate manage-financial statements have been prepared in conformity with ment follow up. generally accepted accounting principles consistently applied The Board of Directors, through its Auditing Committee comprised Other information included in this report is consistent, where of outside directors, is responsible for ensuring that both man-applicable, with the financial statements. agement and the independent accountants fulfill their respective The Company maintains a system of internal accounting controls responsibilities relative to the financial statements. Moreover, designed to provide reasonable assurance as to the integrity of the independent accountants have full and free access to meet the financial records and the protection of assets. Qualified with the Auditing Committee, with or without management personnel are selected and an organization structure is main- present, to discuss auditing or financial reporting matters. tained that provides for appropriate functional responsibility. Report OfIndependent Accountants ONE CENTERRE PLAZA iCC ST LOUIS. MO 63101 [atCr3OUSC 314 425-0500 February 6,1985, except as to the information relative to the Missouri Supreme Court decision in Note 9, which is as of February 27,1985 l To the Stockholders and Board of l Directors of Union Electric Company l In our opinion, the accompanying consolidated balance sheet and the related consolidated statements of income, i long-term debt, preferred stock, retained eamings, other paid-in capital and changes in financial position present l fairly the financial position of Union Electric Company and its subsidiary at December 31,1984 and 1983, ! and the results of their operations and the changes in their financial position for each of the three years in the l period ended December 31,1984, in conformity with generally accepted accounting principles consistently applied. , Our examinations of these statements were made in accordance with generally accepted auditing standards l and accordingly included such tests of the accounting records and such other auditing procedures as we
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~ a~ =_ ._ .= _-_ ~ a Notes To FinancialStaternents Union Electric and Subsidiary Note T-summary of Accounting Policies Under accepted rate-making practice, cash recovery of AFC, as The Company is subject to regulation by the Missouri Public well as other construction costs, occurs when completed projects Service Commission, Illinois Commerce Commission, Iowa State are placed in service and fellected in customer rates.
Commerce Commission and the Federal Energy Regulatory Com-AFC rates are established by the Company consistent with the mission. The accounting policies of the Company are in accordance methodology prescribed by the Federal Energy Regulatory Com-pith the rate-making practices of the regulatory authorities having mission. Average annual AFC rates were 12 0% in 1984,11.7% in lunsdiction and, as such, conform to generally accepted 1983 and 11.6% in 1982. AFC, net of taxes, amounted to 95%, accounting principles as applied to regulated public utilities, 86% and 90% of eamings on common stock for 1984,1983 and A descnption of the Company s significant accounting policies 1982, respectively. follows.
. Unbilled Revenue Principles of Consolidation . The Company records on its books the estimated amount of accrued.
The consolidated financial statements include the accounts of the but unbilled. revenue and also the accrued liability for tae Company and its totally-held subsidiary. In the process of consok~ related taxes. dation, all intercompany investments and accounts are climinated. Property and Plant Total income tax expense for 1984 resulted in an effective tax rate The cost of additions to and betterments of units of property and of 31% on camings before income taxes (34% in 1983 and 32% in plant is capitalized. Cost includes labor, material, applicable taxes. 1982). The principal reason such amount was less than the 46% pensions and certain other items, plus an allowance for funds used statutory Federal rate was the allowance for equity funds used during construction. Maintenance expenditures and renewals of during construction, which was 18% of carmngs before income sterns not considered to be units of property are charged to income taxes for 1984 (16% in 1383 and 14% in 1982). as mcurred. When units of depreciable property are retired, the original cost and removal cost, less salvage, are charged to income tax expense components for the years shown are as follows accumulated depreciation. (in thousands): 00" 003 NO Depreciatlan For financial statement purposes, depreciation is provided over the included in operatino expenses-estimated lives of the various classes of depreciable property by Taxes currently payable. applying composite rates on a straight-line basis. The provision for federal. S (5,860) $ 5.701 $ 7.943 depreciation in 1984 is equivalent to approximately 3.1% of the average depreciable cost (2.9% in 1983 and 2.8% in 1982). De erfed taxes tpnncipally Federah income Taxes Liberalized depreciation . 97,006 21.279 17.500 Deferred income taxes are provided for timing differences between llepair allowance 27,397 - - book and taxable income as permitted for rate making purposes. Allowance for borrowed funds investment tax credits utilized are deferred and amortized over the useful lives of the properties to which they relate. Con ru t n ab don fn Other(pomanly capitalized costs) 13,215 9.589 7.288 l Allowance for Funds Used During Construction Provisions deterredin prior years (5,114) 13.728) (5.316) Allowance for funds used during construction (AFC) is a utility Defened investment tax credits net. (46,391) 49.054 (3.073) industry accounting practice whereby the cost of borrowed funds 143,820 IUill ~9756) and the cost of equity funds (preferred and common shareholders' Current provision included equity) applicable to the Company's construction program are in other income . (634) 1.046 (354) capitalized as a cost of construction. This accounting practice is Total S143,186 $141,157 $97,613 intended to offset the effect on camings of the cost of financing - Construction activity, and results in treating such financing costs in the same manner as construction charges for labor and materials. Investment tax credit carryforwards, unrecorded as of December 31, 1984, amounted to approximately $170 milhon which may be utikzed by the Company to reduce future income tax liabihties through 1999. ?
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.,m1I.m4ASsht m n,.5- r -+s --dw - - _.h. m.a u ,-ww% w. dw.. amwe,.%- %.%.o # Awa j.m si. QL6.,nomem.,,,,,,a Note 3-CapitalStock Note 4-Preferred Stock Subject to Mandatory Redemption During the three years ended December 31,1984, common stock, During the five years from December 31,1984, the amounts of $5 par value, was issued as follows: 6,000,000 shares and 6,500.000 preferred stock to be redeemed at stated value are: $5,776,000 shares cere issued in 1983 and 1982, respectively. In addition, in 1985; $5,776,000 in 1986; $5,776,000 in 1987; $9,526,000 in of the 18,000,000 shares reserved for the Union Electric Company 1988; and $9,526,000 in 1989. Dividend Reinvestment and Stock Purchase Plan,3,968,640 Note 5-Debt Retirement Provisions shares,3,898,752 shares and 3,157,794 shares were issued in During the five years from December 31,1984, the amounts of debt 1984,1983 and 1982, respectively; and of the 4,500,000 shares maturities are: $65,993,000 in 1985; $118,844,000 in 1986; reserved for the Union Electric Company Employee Stock Ownersh.ip $147,012,000 in 1987; $271,178,000 in 1988 and $12,846,000 in Plan,495,750 shares and 377,789 shares were issued in 1984 1989. Amourts for years subsequent to 1985 do not include nuclear and 1983, respectively. fuel lease payments since the amounts of such payments are not During the same three-year period, preferred stock, without par currently determinable. value, Cas issued and redeemed as follows: 3.000,000 shares. Debt retirement provisions contained in most mortgage bond inden- $2.98 Series were issued in 1983 and 3,000,000 shares, $4.00 tures of the Company require, subject to certain alternatives, the Series in 1982. In December 1983, the Company issued shares 0f redemption annually of 1% of the principal amount (as defined) of i.ts preferred stock in exchange for former subsidiary companies, each series of bonds. Where permitted by the indentures, the Com-preferred stock, as follows: 20,000 shares, $4.75 Series; 40,000 pany has been following the practice of pledging property additions shares, $4.30 Series: 14,000 shares, $5.50 Senes A; 3,000 n lieu of such redemptions' shares, $5.50 Series B and 9,620 shares, $6.30 Series. In each of the years 1984,1983 and 1982, the Company redeemed 80,000 Note 6-Employee Retirement Plans and Related Benefits The retirement plans covering employees of the Company are shares, $2.72 Series and 260 shares, $6.30 Series. financed through irrevocab!c pension trusts and group annuity Preferred Stock Eventual contracts. The Company s policy is to fund pension costs accrued. Redemption Prices Current Minimum Costs of the retirement plans for the years 1984,1983 and 1982 (Per Sharei were $16,000,000, $15,710,000 and $14,279,000, respectively, of which approximate ly 26% was charged to construction accounts. 0 e 8) 8) The aforementioned amounts include current service costs and prior
$5.50 Series d. 110 00 110 00 ,
service costs which are being amortized over twenty years.
$5.50 Series B. 103 50 103.50 $4.75 Series . 102.176 102.176 A comparison of estimated actuarial present value of accumulated $456 Series 102.47 102.47 plan benefits and plan net assets follows (in millions): $4 50 Series . 110 00 110.00(a)
At December 31,
$4.30 Series 105 00 106.00 $4.00 Series . 105 625 105.625 1984 1983 1982 $3.70 Series 104.75 104.75 Vested $261 $249 $197 $3.50 Senes . 110.00 110 00 23 26 18 Nonvested ' $800 Series of 1971 98.50 98.50 93 25 S284 $275 $215 $8.00 Series . 96.25 $2.98 Series 27.98 25 00 Net assets available for benefits S308 $275 $239 $2.125 Series 26.45M 25 25 $6 30 Series (c) . 101.50 100 00 $4 60 Series (d) . . . . 54 60 @ 50.50 The weighted average assumed rate of retum used in determining $4 00 Senes of 1982te). 29 00<b) 25.00 the actuarial present value of accumulated plan benefits was 7%. $2.72 Series (f) 27.75;b) 25 25 In addition to providing pension benefits, the Company provides (a)In the event of voluntary hauidation. $105 50. Certain health care and life insurance benefits for retired employees.
(b) Redemption sublect to certa n restrictions regarding refunding operations Substantially all of the C0mpany's empl0yces may bcC0mc eligible (c) The Corapany is requned to redeem 260 shares at $100 per share. plus for those benefits if they reach retirement age while working for shares at $50 per share on "U (d) he Compa y s requ r to re ce 5 benefits is recognized on the basis of claims paid. For the year August f 5 of each year. commencing in 1985 1984, those costs totaled $2,464,000. (e) The Cort pany is requned to retire 150.000 shares. and has an option to redeem an additional Ib0000 rhares. at $25 per share on February 15 of each year, commencing in 1988 (f) The Company is requned to retne 80.000 shares and has an option to redeem an additional 80000 shares at $25 per share on November 15 of each year gl
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s - g. ; h.g * , - l& l Notes To Financial Staternents(conunuco) Union Electric and Subsidiary - Note 7-Short-Term Sorrowings and used for service. The Company appealed and by a decision Short-term borrowings of the Company consist of bank loans (matur- dated February 26,1985, the Missouri Supreme Court ruled that ities not in excess of 270 days) and commercial paper (maturities the statutory ban does not apply to canceled plants and remanded generally within 10-45 days). Information relative to short-term the issue to the Missouri Commission for further proceedings. The borrowings is as follows (in thousands except rates): balance of such costs, applicable to other regulatory jurisdictions, 1984 1983 1982 is either presently being recovered in customers' rates, or under Amount outstanding regulatory consideration. In the opinion of management, unrecovered at year end- costs, if any, would not be material to the financial position of Bank loans S 51,000 $ 31.500 $ 42.100 the Company. Commercial paper . - -
$ 25.000 The Company's insurance coverage for its Callaway nuclear plant.
Com ' " the maximum arriounts currently available to the Company, are as follows:
,a at ar nd-Bank loans 9.3% 10 8% 11.3% Property insurance coverage of $500 million provided by Commercial paper . - -
9.9% American Nuclear Insurers (ANI) and Mutual Atomic Energy Maximum aggregate amount Liability Underwriters (MAELU). outstanding at any month end during the year . S205,750 $154.500 $205.850 Excess property insurance of $475 million provided by Average daily short-term Nuclear Electric Insurance Limited (NEIL) a mutual insurer borrowings outstanding established by the utikty industry. Under this policy, the during the year- Company could be subject to a retrospective premium Aggregate amount . S119,871 $115.775 $138.847 assessment of up to $9.3 million in any one policy year if Ceight:d composita NEIL's property losses exceed available funds. interest rate . 11.0% 9.7% 13.7 % Excess property insurance of $85 million is provided by The above weighted composite interest rates were calculated by ANI and MAELU. The Atomic Energy Act, as amended, currently limits liability d ily s ort term win s shown a e. . to third parties to $620 million for each nuclear incident. At December 31,1984, the Company had bank lines of credit Coverage of the first $160 million of such liability is pro-aggregating $207.140,000 ($156,140,000 of which was unused at vided by ANI and MAELU. The balance is provided by utility such date) which make available interim financing at various rates industry retrospective assessments. The Company's of interest based on prime, the London Interbank Offered Rate maximum potential assessment under this plan would be (LIBOR), the bank certificate of deposit rate, or other options, and $5 million per incident but not more than $10 million in support of which the Company has both written and unwritten per year. Accidental outage replacement power cost insurance pro-5% o the u e port n he ine of c edit to . 7 o he vided by NEIL. Thereunder, the Company is insured for up line of credit. These lines of credit are renewable annually at various to approximately $1.2 milIlon per week for one year, com-dates throughout the year- , mencing 26 weeks after initiation of the autage, and for up Note 8-Construction Commitments to approximately $0.6 million per week for an additional Ine Company is engaged in a construction program under which year. Under this policy, the Company could be subject to a expenditures of approximately $1 billion are anticipated during the maximum annual retrospective premium assessme't of up next five years, of which expenditures of $298 million and $195 to approximately $3 million. million are estimated to be made in 1985 and 1986. respectively. To the extent that any losses arising from a nuclear incident at Note 9-Cont /npencies Callaway Plant excecd the limits of insurance, or to the extent such On October 9,1981, the Company canceled construction of Unit insurance becomes unavailable in the future, the Company will No. 2 at its Callaway nuclear plant. At December 31,1984, $43 million. retain the risk of loss as a self insurer. Although the Company has representing construction costs accumulated to that date plus no reason to anticipate a serious nuclear incident at Callaway estimated cancellation charges (net of taxes) has been deferred. Plant, if such an incident did occur, it could have a material but By order dated October 21,1983, the Missouri Commissien ruled presently undeterminable adverse impact on the Company's that recovery of such cancellation costs applicable to the Missouri financial position. jurisdiction ($37 million)is barred by a state statute which prohibits recovery, in rates, of costs of a facility before it is fully operational 24
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w- _. ~ __ .. = a_. u.__._aw i 1 Note 10-Nuclear FuelLease Note 12-Set!Iement of Uranium Litigation The Company has entered into a lease agreement which provides In 1979, the Company and Westinghouse Electric Corporation settled for the financing of the costs of up to $300 million of the Company's the Company's suit to require Westinghouse to fulfill its contractual nuclear fuel. Pursuant to the terms of the lease, the Company has obligation to deliver 10 million pounds of uranium U30s to the assigned to the lessor certain contracts for purchase of nuclear Company. The settlement provides for cash and discounts on uranium, fuel. The lessor obtains through the issuance of commercial paper goods and services over the period 1980-2010. Company proposals backed by letters of credit from commercial banks, or from direct currently under review by regulatory authorities provide loans from commercial banks, the necessary funds to purchase the that settlement proceeds will be utilized to reduce fuel expense. fuel and make interest payments when due. yggg g3_ggppfg,gggg,y gggggg ggggggggg gggg,,ggggg The Company is obligated to reimburse the lessor for all expendi-tures for nuclear fuel, interest and related costs. Obligations under 1984 1983 1982 this lease become due as the nuclear fuel is utilized at the (Thousands of Dollars) Company's Callaway nuclear plant. Maintenance and repairs. charged directly to: The Company has capitalized the cost, including interest costs of Operating expenses $106,368 $ 99.395 $100.223 the leased nuclear fuel and has recorded the related lease 7,573 Other accounts (a) 5.888 5.736 obligation. During the years 1984,1983 and 1982, the Company capitalized related interest costs of $23.0 million, $17.9 million S113,941 $105.283 $105.959 and $19.7 million based on an average interest rate of 11.3%, Depreciation, depletion and 10.0% and 13.4%, respectively. amomzation of fixed and intangible assets arged d rectly to-Note 11-Callaway Nuclear Plant The Callaway nuclear plant began generating electricity in October 2,894 3.018 Othe accounts (a) 2.862 1984 and regulatory prescribed preoperational testing programs were completed in December 1984. In anticipation of completion of S104,444 $ 95.315 $ 89.532 the plant, the Company filed rate increase requests as explained Taxes, other than payroll and income on page 6 under " Rate Request Decisions Expected During Early '85." taxes. charged directly to: Other parties to the Missouri and Illinois rate increase request Operating expenses-proceedings have proposed disallowances of portions of the Real estate and personal Callaway Plant cost and have proposed reductions in the rate property S 45,073 $ 48.426 $ 51.282 License and franchise. 68,172 69.682 61.002 increase requests filed by the Company. The Company believes Other. 1,685 L722 L491 lEhat all construction costs incurred for the plant are reasonable and prudent. However, it can give no assurance that adequate rate 114,930 119.830 113.775 relief cill be granted. In the event that the Company is not permitted Other accounts 13,943 11,403 9.249 10 earn an adequate return on its investment in the plant or to S128,873 $131.233 $123.024 reaver all construction costs incurred, there could be a material ! adverse impact on earnings and financial position. (a) A substantial portion of amounts chaged to other accounts is allocated to operatmg expenses through clearing accounts. ,Under the Nuclear Waste Policy Act of 1982, the U.S. Department ib) The amounts of payroll taxes for the years 1984.1983 and 1982 were 4f Energy (DOE)is responsible for the permanent storage and $12.698.000, $12.068.000 and $11.036,000. respectively fisposal of spent nuclear fuel. DOE currently charges one mill per (c) The amounts of royalties and advertising costs were not material. tilowatt-hour generated for future disposal of spent fuel. i ln addition, Callaway Plant decommissioning costs are currently estimated to be $120 million. Pending rate increase requests provide for the recovery of both spent fuel disposal costs and decommis- .si0ning C0sts. This reprt and the financial statements contained herem are submitted for the information of the stockholders of the Company and are not intended to induce, or for use in connection with. any sale or purchase of any securities of the Company 25
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_ - ._m - ,, - t a .a - - -.a -._ ." _ _..~x. w .--._ - w _ - - a. - . Selected Financial Information (Thousands of Dollars Except Share and Per Share Amounts and Ratios) Union Electric and Subsidiary 1984 1983 1982 1981 Results of Operating revenues .S1,412,414 $1,401,086 $1,217,705 $1,105,536 Operations Operating expenses. 1,172,128 1,160,816 1,013,054 922,647 Operating income . . 240,286 240,270 204,651 182,889 Allowance for all funds used during construction 329,669 251,307 198,093 155,625 Other income-miscellaneous. 1,517 3,490 3,660 (734) Interest on debt 247,308 218,530 200,554 180,312 Net income 324,164 276,537 205,850 157,468 Preferred stock dividends . 50,185 46,118 40,344 29,863 Eamings on common stock . 273,979 230,419 165,506 127,605 Average common shares outstanding .96,574,699 86.744.282 76.251,024 67,179.275 Assets, Total assets. . .S5,878,691 $5,205,556 $4,630,797 $4,047,277 Obligations Long-term debt obligations 2,457,381 2,108,047 2,000,405 1,719,927 and Equity Redeemable preferred stock Capital obligations . 178,936 180.962 182,988 110,014 (Year-End) Non-redeemable preferred stock. 356,270 356,270 281,355 281,355 Common equity. 1,724,450 1.555,501 1,328.061 1,162,777 FinucialIndices Eamings per share of common stock (based on average shares outstanding) . S2.84 $2.66 $2.17 $1.90 Cash dividends per share of common stock S1.72 $1.66 $1.58 $1.52 Retum on average common stock equity . 16.90% 16.49 % 13.93% 12.11% Ratio of eamings to fixed charges (a). 2.88 2.90 2.50 2.30 (a) Earnings used in computing the ratio of earnings to fixed charges consist of net income plus hxed charges (interest on debt and an appropriate amount of rentat charged to operating expenses) and income taxes. l \ l 26
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$1,077,876 $946,797 $903,988 $765,102 $682,456 $583,455 $468,656 886,720 780,331 727,756 605,963 518,342 446,569 355,655 191,156 166,466 176,232 159,139 164,114 136,886 113,001 92,055 58,093 31,469 19,022 12,379 23,107 13,696 3,638 879 2,896 1,389 (2,554) 1,403 1,154 131,725 106,995 90,309 83.624 78,136 74,967 67,823 155,124 118,443 120,288 95,926 95,803 86,429 60,028 30,082 27,336 23,430 20,758 20,033 20,034 15,942 125,042 91,107 96,858 75,168 75,770 66,395 44,086 48.260.596 45.110,245 40.795.152 37.240.134 32.187,113 59.675.995 52.577.432
$3,552,104 $3,168,998 $2,800,209 $2,521,181 $2,316,039 $2,162,312 $2,030,103 1,479,229 1,307,990 1,238,860 1,189,080 1,118,418 1,021,747 939,933 112,040 114,066 41,092 41,118 41,144 41,170 41,196 281,355 281,355 281,355 281,355 241,355 241,355 241,355 1.043.549 930.375 836.020 733.111 634.400 608.860 543.985
$2.10 $1.73 $2.01 $1.67 $1.86 $1.78 $1.37
$1.48 $1.44 $1.40 $1.36 $1.34 $1.28 $1.28 13.11 % 10.71 % 12.61 % 10.68% 12.19% 11.98 % 8.94 %
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- : w - = n-~. = m w- -_ m a a.w _ -a-nfanagernent's Discussion And Analysis-Liquidity And CapitalResources Uiiion Electric and Subsidiary Construction expenditures for the next five years,1985 through The Company plans to continue to utilize short term debt as 1989, are expected to aggregate approximately $1 billion, including support for normal operations or other temporary requirements.
$298 million in 1985. The Company comp'eted the construction of Average daily short-term borrowings outstanding dunng 1984 were its Callaway nuclear plant in late 1984 (its first new major power $120 million. At December 31,1984, bank lines of credit and plant since 1977); consequently, additional electric generation credit commitments from banks aggregated $207 million, not capacity is not anticipated at least until the mid 1990s. including the intermediate-term credit agreements mentioned above; and, at such date $51 million of short-term bank loans were In addition to the funds required for construction during the 1985 1989 period, $652 million, including $72 million in 1985, will be outstanding (see Note 7 under Notes to Financial Statements).
required to retire maturing long-term debt and for sinking fund Union Electric is authorized by the Federal Energy Regulatory Commission to incur up to $300 million 0f short-term unsecured payments on first mortgage bonds and preferred stock. The total , indebtedness; however, short term debt is not expected to exceed amount of maturities during this five-year pericd does not include
$200 million during 1985 or beyond.
nuclear fuel lease payments for years subsequent to 1985, since the amounts of such payments are not currently determinable. For data relative to Supplementary Information on inflation and Changing Prices, see pages 32 and 33. A nuclear fuel lease provides for the financing of up to $300 million of the Company's nuclear fuel requirements. At December 31,1984,
$239 million of nuclear fuel had been financed under the lease.
Union Electric has entered into intermediate-term credit agreements eith certain domestic and foreign banks which permit the Company to borrow up to $575 million through July 1985 with final repay-ment due July 1986 through July 1988. At December 31,1984,
$375 million of such borrowings were outstanding.
In addition, the Company has an intermediate-term credit agree-ment with certain foreign banks which permits the Company to bonoa up to $40 million through December 1987. At December 31, 1984, none of such foreign borrowings were outstanding. The Company presently anticipates that 1985 extemal cash sources will primarily include environmental improvement debt, the Dividend i Reinvestment and Stock Purchase Plan and the nuclear fuel lease. Intemal generation of funds for construction, during the five-year period 1985-1989, should improve significantly, unlike the recent period when Callaway Plant construction was financed almost l entirely from the sale of securitics and bank loans. i l l 1 l l l 28 l
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Results Of Operations Jnion Electric and Subsidiary latnings and earnings per share fluctuated due to many condi- Operating Expenses tions, certain of which applied te the utility industry in general and The changes in operating expenses were as follows: Inion Electric in particular: the effect of v eather variations, the timing and amounts of rate increases and fluctuating operating Fual and Purchased Power Vanation from Prior Year costs. Also, the quality of such eamings has been adversely affected g the substitution of Allowance for Funds Used During Construc. 1984 1983 1982 tion (AFC)(a noncash item) for the cash recovery of the cost of (Millions of Dollars) funds invested in facilities under construction. Fuel The $2.84 per share 1984 common stock eamings amounted to an 18 cent improvement over 1983. Increased sales of electricity fna"""b"s' e increa Efficiancies (.5) R (4 2)
.n the commercial and industrial sectors were a major factor con- Purchased and interchange power 25 2 73 (28.5) tributing to the improved camings S 3.2 S 64 9 5157 The impact of the more significant items affecting revenues, costs The large increase in 1983 purchased and interchance power a d camings during the past several years is analyzed and primarily reflected increased power required during the extremely hot 1983 summer. This high summer usage did not reoccur in Electric Operating Revenues 1984 when temperatures were near-normal.
Vanation from Prior Year Other Operating Expenses 84 8 83 8 82 S nce 1981, increased other operations and maintenance expenses (Milhons of Dollars) principally reflected recurring conditions, such as growth, inflation gate variations S(21.8) S 57.7 S 86.1 and wage increases. However, in 1984 the cost of other operations. at e ; excluding maintenance, decreased mainly due to reduced natural O th 0 S 10.9 5169 3 $ 92.2 Since 1381, depreciation has continually increased due to greater fhe reduction in 1984 electric revenues applicable to rate vari- property investments, and income taxes have fluctuated in response "tions reflects lower rates charged to customers of former subsidiary to pretax income (see Note 2 under Notes to Financial Statements). ompanies merged into Union Electric Company at year-end 1983, d fuel cost refunds. Since 1981, other taxes gencrally reflected additional license and
. . franchise taxes on greater revenues and higher payroll taxes due to glectric rate increases were granted by the Missoun Public Service increases in taxable wage bases and rates However, in 1984 the pommission in mid-1983 (approximately $30 million annually), and decrease in other taxes reflects lower property tax rates and gutid-1982 and mid-1981 (approximately $65 million each, annually) assessments in Missouri, and decreased license and franchise
.n 1984, summer temperatures were near-normal and the sales taxes (see Note 13 under Notes to Financial Statements). , mpact, when compared with an extremely hat preceding summer, Interest and Preferred Dividends iffected a $25 million reduction in 1984 electric revenues. The
- xtremely hot 1983 summer and the slightly coolcr-than-norma The increases in interest on debt and preferred dividends were greceding summer caused 1983 electric revenues to increase by primarily due to the issuance of additional securities to finance the
$0re than $50 million over the pnor year. construction program. The large increases in 1984 and 1983 electric revenues attributed Allowance for Funds used During Construction (AFC) ho growth and other causes primarily reflect the economic recovery In recent years. AFC has constituted a substantial portion of n the Company's service territory. as evidenced by continuing in- camings and has continually increased due to a greater amount of treases in sales of electricity to commercial and industrial customers. construction work in progress, primarily the $3 billion Callaway [n 1984 and 1983. commercial kilowatt-hour sales rose 10% and nuclear plant, and increased AFC rates (see Note 1 under Notes to 2%. respectively, and industrial sales were up 6% and 5% respec- Financial Statements). AFC will decline substantially af ter the pieely, when compared with each immediately preceding year. Callaway Plant is reflected in electric rates. On anticipation of completion of the Callaway nuclear plant, the tempany filed rate increase Icquests as explained on oage 6 fnder " Rate Request Decisions Expected During Early '85". l
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1 Selected Quarterly information (Thousands of Dollars Except Per Share Amounts) l Union Electric and Subsidiary Eamings Eamings on Per Shard Operating Operating Net Common of Stock Quarter Ended Revenues income income Stock Outstandinc March 31,1984 . S342,143 S48,548 S 68,118 S55,565 S .59 M arch 31,1983 . 305,859 41,643 53,423 43,059 .51 June 30,1984. 340,347 62,408 80,890 68,336 .71 June 30,1983. 309,658 55,781 61,802 51,215 .60 September 30,1984 422,264 88,304 111,173 98,620 1.02 September 30,1983 466,619 99,860 111,409 98,812 1.14 December 31,1984 307,660 41,026 63,983 51,458 .52 December 31,1983 318,950 42,986 49,903 37,333 .41 Common Stock Prices And Dividends (Per snare) Union Electric Companym 1984 Price Range 1984 1983 Price Range 1983 High Low Dividends 2 Quarter Ended: High Low Dividends S14M S12% 430 . March 31. $15% $13% 41C 13M 12 43 . June 30. 16% 13% 41 14% 12 43 . September 30 15% 13% 41 16M 13% 43 . December 31. 15% 12 % 43 (1) At December 31,1984. Union Electric Company common stock shareholders totaled 185.474 (New York Stock Exchange symbol. UEP). O hl December 31.1984. retained earnings amounted to $552,743.000. under the Company's amended mortgage indentures $57.115.000 of total retained eamings was restricted against payment of common dividends-except those payable in common stock. , 2 1 30
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I L Union Electric and Subsidiary December 31, 1984 1983 1982 1981 1980 Assets Properties (at original cost). .S6,563,248 $5,858,554 $5,190,779 $4.554,567 $4,051,124 Less accumulated depreciation 1,130,621 1,062,765 984,656 915,996 848,826 5,432,627 4,795,789 4,206,123 3,638,571 3,202.298 Receivables, net . .. 178,049 174,382 146,293 135,496 126,075 Fuel supplies .. 87,753 73,889 99,006 82,310 109,908 Other assets 180,262 161.496 179.375 190.900 113.823 l Total Assets S5,878,691 $5.205.556 $4.630.797 $4.047.277 $3.552,104 1 Capital and Capitalization: Liabilities Common stock and retained earnings-Common stock . .S 495,773 $ 473,451 $ 422,068 $ 373,780 $ 330,627 Other paid-in capital . . . 675,934 637,039 541,222 464,450 414,020 Retained eamings . 552,743 445,011 364,771 324,547 298,902 Common equity 1,724,450 1,555,501 1,328,061 1,162,777 1,043,549 Preferred stock not subject to mandatory redemption. . 356,270 356,270 281,355 281,355 281,355 Preferred stock subject to mandatory redemption . . 178,936 180,962 182,988 110,014 112,040 Long-term debt obligations 2,457,381 2,108,047 2,000,405 1,719,927 1,479,229 Total capitalization 4,717,037 4,200,780 3,792,809 3.274,073 2,916,173 Accumulated deferred taxes on income . . 609,663 408,171 328,580 238,153 166,167 Accumulated deferred investment tax credits . . 123,749 164,468 122,217 125,290 113,474 Accounts and wages payable. .. 134,885 175,561 137,209 91,567 98,224 Short-term debt including current maturities 116,993 42,228 69,323 152,253 141,895 Other liabilities . . 176,364 214.348 180.659 165.941 116.171 Total Capital and Liabilities S5,878,691 $5.205.556 $4.630.797 $4.047.277 $3.552.104 Common Equity Number of shares outstanding . . .99,154,610 94,690,220 84,413,679 74,755.885 66,125,317 l Data Book value (common equity)
. per share . S17.39 $16.43 $15.73 $15.55 $15.78 t
T Capitalization l Common equity. 36.6% 37.0% 35.0 % 35.5% 35.8 % Ratios - Preferred stock not subject i i ! to mandatory redemption. 7.5 8.5 7.4 8.6 9.7 Preferred stock subject to , mandatory redemption 3.8 4.3 4.8 3.4 3.8 l Long-term debt . 52.1 50.2 52.8 52.5 50.7 I Total 100.0% 100.0 % 100.0 % 100.0 % 100.0 % 1 31 l
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n- . wgg r w }., a 1 s kb Sh bd$bI b 1 l Supplementary Information On Inflation And Changing Prices sunaua,ted, Union Electric and Subsidiary Estimated effects of inflation and changing prices on the operations Depreciation Expense of the Company for the year ended December 31,1984, are Depreciation expense for the year 1984 applicable to current cost presented in accordance with the requirements of Financial property was $269.493.000. The actual 1984 depreciation expense Accounting Standards Board (FASB) Statement No. 33. " Financial was $101.550,000. Reporting and Changing Prices". Statement No. 33 requires that The adjusted amount was determined by applying to the current historical costs be adjusted to reflect the effect that changes in cost of property and plant the same straight-line book rates used specific prices (current cost) have had on the Company s Operations. for historical purposes. The adjusted data is not intended as a substitute for earnings reported on an historical cost basis, but rather to give some Reduction oI Property, Plant and Equipment perspective as to the approximate effects of changing prices on to Net Recoverable Cost the Company's investment and operations. The regulatory process limits the Company to the recovery of the historical cost of property and plant through depreciation. Therefore. Property, Plant and Equipment any excess of property and plant on a current cost basis must be The estimated current cost of property. plant and equipment, in- reduced to net recoverable cost, which is historical cost. While the ciuding construction work in progress. was determined by applying rate-making process does not reflect the current cost of replacing the Handy-Whitman "Index of Public Utility Construction Costs" to utility plant, past practice indicates the Company will be allowed to the historical cost of each major class of plant. Current cost
. earn on and to recover the increased cost of its net investment approximates the cost of currently replacing existing plant. The after these facilities are replaced.
plant investment at current cost does not indicate the Company's future capital renuirements since actual existing plant replacement Gain from Decim.e in Purchasing Power of will occur over many years and will not identically replace present Net Amounts Owed plant. The Company, by having assets such as receivables, fuel and materials inventory and deferred charges, suffers a loss of pur-At December 31,1984, the current cost of property, plant and chasing power during periods of inflation because after conversion, equipment, net of accumulated depreciation was $10,499.731,000 the cash received for these items will purchase less. More than while historical or net recoverable cost was $5,432,627,000. offsetting such assets, however, are significant amounts of long-term Accumulated Depreciation debt, refundable preferred stock, deferred income taxes and current The accumulated provision for depreciation on a current cost basis liabilities which will be repaid with dollars of reduced purchasing was determined by applying to the adjusted amounts for each power. Thus, for 1984, the Company experienced a net " gain" of functional class of plant, the same percentage relationship that $113.370.000 from having an excess of monetary liabilities over existed between gross plant and the associated accumulated monetary assets. (Investments and unamortized investment tax l proeision for depreciation on an historical basis. credits were considered as nonmonetary items: nonrefundable preferred stock was included in shareholders' equityL Consolidated Statement of income Adjusted for Changing Prices Year Ended December 31,1984 On Millions of Average Dollars) Current Cost i Common stock carnings* $274 Additional depreciation . (168) l Common stock earnings adjusted (excluding adjustment to net recoverable cost). 106 Adjustment to net recoverable cost . 36 Relative pnce changes ** (64) Gain fnm decl ne in purchasing power of net amounts owed . 113 Net change in common equity $191
' As reported " Current cost represents the excess of general price changes iS389 milliom in 1984 over ine increase for sucn year in specinc onces or property and piant ,sa25 m.ii.
32
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J-w w -- ieneral of 46%. Failure of regulatory and taxing authorities to allow depreci- >ursuant to FASB Statement No. 33. depreciation expense was the ation of the current cost of plant severely limits the amount of funds Inly income statement item that was adjusted. that are generated internally for use in replacing or modernizing aging and obsolete assets. or rate-making purposes. the amount of depreciation expense acluded in the Company's allowed revenues is based on historical Rates authorized by regulatary agencies must be sufficient to ir original cost. The Company's inabikty to currently reflect the permit the replacing of plant and equipment when necessary as lffects of inflation and changing prices resulted in 1984 reported well as preserve the purchasing power of common equity capital.
- amings of $273.979.000 or $2.84 per share rather than the more To have retained the same purchasing power as they had in 1980, calistic current cost earnings of $106.036.000 or $1.10 per share. the Company's common shareholders should have received 1984 kiso, because Federal income tax policy prohibits the deduction of common dividends of $1.87 per share as compared with the lflation-adjusted depreciation expense for income taxes, the actual $1.72.
20mpany's 1984 effective iiicome tax rate was about 48% en a
.urrent cost basis, which is greater than the Federal statutory rate
- ive Year Comparison of Selected supplementary Financial Data _ . _ _ _ _ _ _ _ __ __ Years Ended December 31, _ _ _ _ _ _ _ _ _ _
Ldjusted for Effects of Changing Prices 1984 1983 1982 1981 1980 (In Milhons of Average 1984 Dollars Except Per Share and As Reported ' Amounts) 1perating revenues: As reported . 51.412 51.401 $1.218 51.106 S1.078 Adiusted for general inflation 1.412 1.461 1.310 1.263 1.359 Earnings (loss) on common stock (excluding reduction to net recoverabPe cost): As reported . 5274 $230 $166 $128 $125 Based on cur: ant cost . 106 73 17 l11) 8
!arnings (loss) per share of common stock (excluding reduction to net recoverable cost):
As reported . 52.84 $2.66 $2.17 S1 90 $2.10 Based on current cost . 1.10 .84 .22 L16) .14 Excess (deficiency) of general price changes over increase in the specific level of prices $64 Si70i $(35) $(15) S143 ihareholdert' equity (net assets), at year end: Historical cost (as reportedj $2.081 $1.912 51.609 S1.444 $1.325 Adjusted for current cost 2.052 1.960 1,712 1.596 1.595 iain from decline in purchasing power of net amounts owed ... $113 S100 $90 $186 5245 l ash dividends declared per common share: Actual 51.72 51 66 SI 58 SI 52 51 48 Adlusted for general inflation 1.72 1.73 1.70 1.74 1 87 Aarket price per share, at year end: Actual $165 S121 8 $131 5107 8 $107 8 Adjusted for generalinflation 161.3 13% 14% 12 13 Lverage Consumer Price Index (cpl-U) 311.1 298 4 289i 2/24 246 8 l l l l
_. - n, , ,., 3, - - x =~ .- - w - .. - a_;_.~ __.w. w__x Operating Statistics Union Electric and Subsidiary 1984 1983 1982 1981 Electric Operating Residential. .S 495,346 $ 524,792 $ 426,213 $ 389,182, Revenues (000): Commercial 430,913 402,737 363,826 321,400 Industrial . 294,245 281,397 257,320 250,842 Other electric utilities. 50,702 46,428 42,650 39,789 Miscellaneous 20,880 25,800 21,846 18,458 Total S1,292,086 $1.281.154 $1,111.855 $1,019.671 Kilowatt Hour Sales Residential. 8,764 8,979 7,906 7,756 (000,000): Commercial 8,441 7,653 7,339 7,024 Industrial , 7,928 7.478 7,130 7,767 Other electric utilities . 1,503 1,498 1,412 1,420 Miscellaneous 164 321 310 312 Total 26,800 25.929 24.097 24,279 Electric Customers Residential. 888,026 879,156 869,844 870,066 (End of year): Commercial 106,760 110,048 109,947 108,561 Industrial . 6,334 5,126 5,132 5,207 Electric utilities 24 24 24 24 Other 1,400 3,297 3.234 3,065 Total 1,002,544 997,651 988.181 986,923 Residential Customer Kilowatt-hours used . 9,951 10,283 9,108 8,955 Data (Average): Annual electric bill. S562.60 $601.03 $490.96 $449.35 Revenue per kilowatt-hour 5.650 5.840 5.39C 5.02C Gross Instantaneous Peak Demand (Kilowatts) 6,810,000 6,598,000 6,161,000 6.296,000 Capability at Time of Peak, including Net Purchases (Kilowatts) 7,912,000 7,633.000 7,631,000 7,444,000 Generating Capability at Time of Peak (Kilowatts). 6,952,000 6.948,000 6,951,000 6,879,000 Coal Burned (Tons) . .11,820,000 11,371,000 11,086,000 11,316,000 Price per Ton of Coal . S33.76 $33.33 $30.45 $29.15 1 34 i
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- 1980 1979 1978 1977 1976 1975 1974
$333,251 $331,128 $283,124 $248,784 $220,174 $171,381 $402.160 265,278 253,279 219,806 195,568 162,079 129,351 306.486 233,854 221,617 209,440 169,834 154,539 127,939 107,471 35,619 34,185 31,565 24,040 21,432 19,812 23,814 18,774 20,388 19,061 16.232 14,677 12,973 11,027 $996.893 $874.719 $844,473 $713.036 $635.000 $542,977 $443.044 8,446 7,546 7,670 7,389 6,625 6,807 5.898 6,913 6,463 6.332 6,331 5,823 5.554 5.249 7,616 7,858 7,738 7,656 7,221 6,855 6,845 1,435 1,341 1,317 1,263 1,171 1,222 1,780 385 481 460 442 519 506 474 24,795 23,689 23.517 23.081 21.359 20.944 20.246 862,406 853,908 845,074 832,251 821,564 810,702 764,363 106,428 101,355 99.751 99,105 95,248 93.848 81,477 5,328 5,334 5,348 5,225 5,459 5,368 5,303 24 24 24 24 24 25 23 2,950 2,917 2,753 2,312 1,472 1,350 1,195 977,136 963.538 952.950 938.917 923,767 911.293 852.361 9,848 8.893 9,167 8,956 8,114 8,459 7.756 $468.92 $392.74 $395.74 $343.16 $304.71 $273.62 $225.37 4.76C 4.42C 4.32C 3.830 3.760 3.23C 2.91c k,404,000 5,846,000 5,813,000 5.837,000 5,582,000 5,363,000 5,318,000 F,468,000 7,739,000 6,873,000 6.891,000 6,913,000 6,474,000 6,660,000
),824,000 6,947,000 6.718,000 6,607,000 6,439,000 5,962,000 6,080.000 0,730.000 12.037,000 11,866,000 11,915,000 11.069.000 10,089,000 8.574,000 l $26.85 $26.02 $24.15 $17.86 $15.04 $13.12 $10.23 l l l [
1 OtNcers' 80erdofDirectors William E. Comelius J.. A. Baer 11
> President and Chief Becutin Officer Management-Business Consultant;Former Chairman and Chief Becutin Osca-. Stix, Baer & Fuller..
Earl K. Dille :
^ becutin Vice President *W. L Behan, Jr. ..
Stewart W. Smith,-Jr @ainnan ofme Boardand @ief&ecu#w omcu- Hill-Behan Lumber % Becutin Vice President l wholesaler and retailer of lumber and allied building products.
- arman entral Bancompany and its subsidiary. Central Bank, which -
Vc i t-Public Relations conducts a general banking business. Charles A. Bremer
- Vice President-Supply Service ,?gggg gggy gggy, g,7,gg, David C. Harrison Vice President-RegionalWest . ahty,K;g Di9IcePresident ee -Transmission ,f,Sg, fgg,gy gggggy, ggy,gg, ial of the Board-Centerre Bancorporation.
ce res - ineering and Construction
- Richard A.Meyer
**Former President- Anheuser-Busch, Inc.
Herbert W. Loeh Vice President-Employee Relations John K. Riedy ..
@ airman of me Board-INTERCO, INCORPOR ATED, a manufacturer and retaile H. G. Meyer of consuma pmducts and services.
Vice President-Computer Services
- Stewart W. Smith, Jr.
Charles W. Mueller Becu#w Wce President Vice President-Finance
**Howard L Young Robert 0. Pieni Founw President and @ainnan- American Bnc Company.
VicePresident- ates
-William A.Sanford Advisers to the Board c - Vice President-industrial Relations Isaac B. Grain 0er '
Fana President-@emical Bank. Donald F. Schnell Vice President-Nuclear . J. W. McAfee .. . . _Fana @ airman of the Board - TCharles J. Scliukai:
. Vice President-Regional East'
- Edgar J. Telthorst Vice President-Power Operations
- Member of Executive Committee H. E. Wuertenbaecher, Jr.
** Member of Auditing Committee z
- Vice President-Customer Service
. Donald E. Brandt -
ControIIer
- William E. Jaudes i
- GeneralCounsel L A. Esswein Treasurer 1
' James C. Thompson
- Secretary
l Oltice l Sutement Of Policy 1 l 1901 Gratiot Street We are a business enterprise-dependent for success on the high quality 'l l and fair price Of Our service; On the skill, courtesy and loyalty of our ! St Louis. M0 (314)621-3222 ' empl0yees; On the confidence Of Our investors; and on the ability of Our I management 10 f0 recast and pr0 Vide f0r the energy requirements Of Our area. l St Louis. M0 63166 In the conduct Of Our business, we will render service of the highest quality
' to our customers-promptly, courteously and efficiently-at the lowest PassilerAgents prices consistent with paying fair wages and affording job satisfaction and For Preferred Stock a security 10 Dur empl0yees; providing modern facilities f0s OUT cust0mers' Mercantile Trust company . expandin0 needs for energy service; and paying a fair retum to Our investors National Association . who have pr0vided the funds to make such service possible.-
- St Louis, MO 63166 .
~ As a private enterprise entrusted with an essential public service, we Manufacturers Hanover rec 00nize our civic responsibility in the c0mmunities we serve. We shall -
$M215 Estrive to advance the Dr0wth and welfare Of these c0mmunities and shall
- participate in civic activities which fulfill that 00al...for we believe this is both 000d citizenship and good business.
Cent t pany.
- of St. Louis .
. St Louis. MO 63101 . . -
Manufacturers Hanover OlFM#8bsINe#t t Trust Company AW Sect Parc4sse Plas.
. New York, NY W15 iThe Dividend Reinvestment and Stock Purchase Plan pr0vides c0mm0n land preferred stockh0lders, empl0yees and customers the opportunity to
' Assistrars p,, pm g,,g [ purchase shares Of common stock of the C0mpany by automatically ; reinvesting dividends and/0r investing Optional cash payments.
' The Boatmen's National Bank :
- of St Louis - . . Information re0ardin0 the C0mpany's Dividend Reinvestment and Stock '
St Louis. MO 63166 ? Purchase Pian may be obtained by writing to:
" nk Union Electric C0mpany -
fN ti Assoc t )
' Stockholder Services-00de 1035 2
New York. NY 10015 ' p,, % ,,,, P.O. 80x 149 .
- St. L0uis, M0 631661 The Boatmerfs National Bank of St. Louis '
< St Louis. MO 63166 ,
; Manufacturers Hanover
- Trust company l New York, NY 10015.
i , . Pustees, Paasiler ( Agents, Registrars AdPayingAgents For First Mortgage Bonds Centerre Trust Company of St. Louis. Trustee
. St. Louis. MO 63101 The Boatmerfs National Bank
! of St Louis. Trustee l St. Louis. M0 63102 L Harris Trust and Savings Bank and J. L Spreng, Co-Trustees Chicago. IL 60690 Bankers Trust company New Ybrk, NY 10015 37
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I a is a , UNION ELECTlHC COMPANY 1901 Grotlot Street St. Louis March 26, 1985 Donald F.Schnell
; Vice President .
W 3 ,, .ti
,I.: [Mr. Harold R. Denton
. +.!JDirector of Nuclear Reactor Regulation U.S. Nuclear' Regulatory' Commission
. > = Washington , - D'.C . 20555
Dear'Mr. Denton:
ULHRC-1068 DOCKET NO. 50-483 CALLAWAY PLANT, UNIT 1 Transmitted herewith are twenty-five (25) copies of the Union Electric Company, 1934, Annual' Report. This information is
. submitted in accordance with 10CFR50 71(b).
Very truly yours, Donald F. Schnell
' WEK/lw -
Enclosure ia l i e Mailing Address: RCL Box 149, St. Louis, MO 63166
,0
ri, , s
- oc: Gerald-Charnoff, Esq.
Shaw, Pittman, Potts & Trowbridge 1800 M . Street ,' N .W. - Washington, D.C. 20036 Nicholas'A. Petrick . Executive Director - SNUPPS 5: Choke Cherry Road Rockville, Maryland 20850 LJohn H. Neisler_ . Callaway Resident Office
'U.S.' Nuclear Regulatory Commission
'RR#1 Steedman, Missouri 65077 William Forney Division of: Projects and:
s Resident Programs, Chief,.Section 1A U.S.' Nuclear Regulatory Commission
' Region III 799 Roosevelt Road . .
Glen Ellyn, Illinois 60137 Bruce Little Callaway-Resident Office U.S. Nuclear Regulatory Commission RR#1 Steedman, Missouri 65077 Tom Alexion Office of Nuclear Reactor Regulation
- U.S. Nuclear' Regulatory Commission Mail Stop P-316 7920 Norfolk Avenue Bethesda, MD 20014 Ron Kucera, Deputy Director Department-of Natural Resources P.O.-Box 176 Jefferson City, Missouri 65102 f
L ti
.p
- i. - . .
!boc:' 3456-0021.6 Nuclear'Date
.DFS/ Chrono 1D.-F.JSchnell J; F.fMcLaughlin J..E. Birk-W.-H.. Weber F. D. Field R. J. Schukai.
.M. A. Stiller
'S. E.~Miltenberger;
' J.~J. Beisman.
Missouri Public Service Commission D;.W. Capone-A. C. Passwater
.T. H. McFarland R. P..Wendling D. E..Shafer D. J. Walker-J. H.lSmith-(Bechtel)
'G56 37 (CA-460)
Compliance (J..E.~ Davis)
;NSRB.(Laura.Robertson) g <- _
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