ML20155E196
| ML20155E196 | |
| Person / Time | |
|---|---|
| Site: | Maine Yankee |
| Issue date: | 04/08/1986 |
| From: | Whittier G Maine Yankee |
| To: | Thadani A Office of Nuclear Reactor Regulation |
| References | |
| GDW-86-91, MN-86-54, NUDOCS 8604170524 | |
| Download: ML20155E196 (55) | |
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MAIRE HARHEE 'ATOMICPOWERCOMPARSe avaug7,y,?n"gy,',
h (207) 623-3521 O
April 8, 1986 MN-86-54 GDH-86-91 Director of Nuclear Reactor Regulation United States Nuclear.legulatory Commission Washington, D. C.
20555 Attention:
Mr. Ashok C. Thadani, Director PHR Project Directorate #8 Division of Licensing
References:
(a) License Nc. DPR-36 (Docket No. 50-309)
Subject:
Annual Financial Report Gentlemen:
Pursuant to 10 CFR 50.71(b), please find enclosed a copy of the 1985 Annual Financial Report (Form 10-K) for Maine Yankee Atomic Power Company.
The original report is on file with the Securities and Exchange Commission.
Very truly yours, MAINE YANKEE ATOMIC POWER COMPANY
(
8 /h/
G. D. Whittier, Manager Nuclear Engineering and Licensing GDH/bjp
Enclosure:
MYAPCo Form 10-K for the Fiscal Year Ended December 31, 1985 cc: Dr. Thomas E. Murley Mr. Pat Sears Mr. Cornelius F. Holdcn
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PDR8604170524 60408 7445L 50E ADOCK 05000309 I
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SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-K Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended Commission file number December 31, 1985 1-6554 1
MAINE YANKEE ATOMIC POWER COMPANY (Exact name of registrant as specified in its charter)
Maine 01-0278125-(State or other jurisdiction of (I.R.S. Employer incorporation or organization)
Identification No.)
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Edison Drive, Augusta, Maine 04336 i-(Address of principal executive (Zip Code) offices) 1 Registrant's telephone number including area code: 207-623-3521 Securities registered pursuant to Section 12(b) of the Act:
s Name of each exchange Title of each class on which registered First Mortgage Bonds, Series A (Sinking Fund) 9.10% Due 2002 New York Stock Exchange, Inc.
First Mortgage Bonds, Series B (Sinking Fund) 8 1/2% Due 2002 New York Stock Exchange Inc.
First Mortgage Bonds, Series C (Sinking Fund) 7 5/8% Due 2002 New York Stock Exchange, Inc.
j Indicate by check mark whether the registrant (1) has filed all reports i
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the reg-i istrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.
Yes x No The aggregate value of the voting stock held by non-affiliates of the reg-istrant is $50,000,000, based solely on the par value of the Common Stock.
There is no market in this security.
Indicate the number of shares outstanding of each of the. registrant's classes of common stock, as of the latest practicable date.
i p Shares Outstanding Class as of March 28, 1986 Common Stock, $100 par Value 500,000 ()
1011A/3262A-1
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Maine Yankee Atomic Power Company
'Information Required in Form 10-K 2
TABLE OF CONTENTS i
- f. age, Part I Iten Number Item 1.
Business...........
3 l
Item 2.
Properties.........
8 Item 3.
Legal Proceedings..
8 Iten 4.
Submission of Matters to a Vote of Security Holders....
10 i
i Part II 1
J Item 5.
Market for the Registrant's Common Equity and Related Stockholder Matters.
...................11 Item 6.
Selected Financial Data..................
12 Item 7.
Management's Discussion and Analysis of Financial Condition and Results of Operations............
13 Item 8.
Financial Statements and Supplementary Data..
15 Item 9.
Disagreements on Accounting and Financial Disclosure..
15 a
1 Part III Item 10. Directors and Executive Officers of the Registrant.
16 Item 11. Executive Compensation...................21 Iten 12. Security Ownership of Certain Beneficial Owners and l
Management.
...................22 Item 13. Certain Relationships and Related Transactions.
. _. 23 i
Part IV Item 14. Exhibits, Financial Statement Schedules, and Reports on Forn 8-K.........
24 Signatures
. 27 I
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Maine Yankee Atomic Power Company Form 10-K - 1985
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PART I 1
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ITEM 1 - BUSINESS i
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(a) General. Maine Yankee Atomic Power Company (the " Company" or " Maine Yankee"), incorporated under the laws of Maine on -January 3,1%6, owns and operates a pressurized water nuclear powered electric generating plant at Wiscasset, Maine, with a current net capability of approximately i
850 megawatts electric (the " Plant").
The Company seus its capacity and output to its ten sponsoring utilities.
The Company's principal office address is Edison Drive, Augusta, Maine 04336, and its telephone number is (207) 623-3521.
l The Company is sponsored by ten investor-owned New England utilities (the j
" Sponsors"), each of which committed itself under a Power Contract with j
the Company to purchase a specified percentage of the capacity and output of the Plant and pay therefor, beginning on January 1,1973, - a like per-i centage of amounts sufficient to pay its fuel costs, operating expenses i
(including a depreciation accrual at a rate sufficient to fully amortise j
the investment in the Plant), interest on its debt and a composite return l
on its capital stock equity. Under amendments to the Power Contracts, in effect as of January 15, 1985, upon approval of a rate case settlement agreement by the Federal Energy Regulatory Commission ("FERC"), the Coa-i pany increased the amount of conections for future decommissioning costs, its allowed rate of return on common equity was increased, and
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other ratemaking practices were changed.
The Company and its Sponsors have executed additional power contracts which win extend the term of f
the Power Contract from 2002 to the end of the useful life and t!q coa-pletion of decommissioning of the plant.
For a further discussion af the l
1985 settlement with the FERC see Item 3
" Legal Proceedings".
Each I
a Sponsor has also agreed under a Capital Funds Agreement with the Company I
to provide a like percentage of the Company's capital requirements not l
obtained from other sources, subject to obtaining necessary authoriza-i tions of regulatory bodies in each instance.
Au such obligations are subject to the continuing jurisdiction of various Federal and state regu-latory bodies.
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(b) (i) Problems Affecting the Industry and the Company. Events in March i
1979 at the Three Mile Island Nuclear Unit No. 2 in Pennsylvania ("TMI")
I caused increased concern about the safety of nuclear generating plants j
which has prompted a rigorous reexamination of safety related equipment and operating procedures in au nuclear facilities and has caused the United States Nuclear Regulatory Commission ("NRC") to promulgate numer-ous requirements in response to TMI, including both near-term modifica-4 tions to upgrade certain safety systems and instrumentations and lo ger-l tera design changes, ranging from equipment changes to operational sup-port.
The Company has made the near-term modifications required by the j
NRC and is still in the process of completing the long-term modifica-l tions. In addition, the NRC is continuing its safety reviews under both j
longstanding and new regulations and may at any time issue orders which l
could materially affect the Company's affairs and financial condition and I
the operation of the Plant. Public and regulatory attention has also 10HA/3262A-3 i i
Maine Yankee Atomic Power Company Form 10-K - 1985 O
ITEM 1 - BUSINESS (continued)
(b) (i) Problems Affecting the Industry and the Company. (continued) focused on the disposal of both low-and high-level nuclear wastes.
Cer-tain aspects of the disposal of nuclear wastes and the decommissioning of nuclear generating facilities have been regulated under Federal and Maine law and further regulation is likely in this area.
Public concern about the operation of nuclear generating facilities and the disposal of nucle-l ar wastes has sometimes resulted in public campaigns to close such facil-ities. Although affecting various nuclear generating facilities in vary-ing degrees, such events, as well as other problems of the. industry, have
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had, and will continue to have, a direct effect on the affairs and finan-cial condition of the Company.
(b) (ii) Seabrook.
Stockholders of the Company owning an aggregate of l
over 93% of the entitlement percentage of the Plant's output are partici-i pants in the Seabrook nuclear project.
Public Service Company of New Hampshire ("PSNH"), owns approximately 36% of the project.
PSNH's ac-countants have reported that commercial operation of Seabrook Unit 1 and adequate rate increases on its completion are necessary for PSNH to con-tinue in existence. Other Seabrook owners (including Central Maine Power Company, the stockholder with the greatest financial interest in the Coa-pany) are experiencing financial and regulatory problems in varying de-j
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grees which could affect the progress to completion of Seabrook Unit 1.
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Although two participants, Fitchburg Gas and Elcetric Light Company and
!O Vermont Electric Generation and Transmission Cooperative, Inc. are not currently paying their share of Seabrook construction cost, certain other i
joint owners or their affiliates are making payments to the project to l
prevent a funding shortfall. Although developments during 1985 and early 1986 have resolved many of the construction, financial and regulatory uncertainties involving the Seabrook project, the Company cannot predict the ultimate resolution and consequences of the continuing financial and regulatory problems affecting the stockholders of the Company who are
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joint owners of the Seabrook project.
Failure to complete Seabrook Unit 1 in a timely and cost-effective manner, absent adequate and timely rate relief, would materially and adversely affect the affairs and finances of some or all of the stockholders of the Company who are joint owners of the Seabrook project.
j The default by any stockholder of the Company in making payments under the Power Contracts or Capital Funds Agreements could have a material and 4
adverse effect on the Company and would constitute a default under the Company's First Mortgage Indenture and other major credit agreements un-less cured within applicable grace periods.
Although no assurances can be given, the management of the Company believes that in light of the operating history of the plant and the ' relatively low cost of power pro-I duced by the plaat, it is unlikely there would be a default that would materially and adversely affect the continued operation of the plant.
(c) Regulation and Environmental Matters.
The nuclear generating facil-
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ity of Maine Yankee is subject to extensive regulation by the NRC.
The NRC is empowered to authorize the siting, construction and operation of nuclear reactors af ter consideration of public health, safety, environ-mental and antitrust matters.
l 1011A/3262A-4._- _ _ _ _ _ _., _ _ _ _ _ _ _,
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o Maine Yankee Atomic Power Company Form.10-K - 1985 ITEM 1 - BUSINESS (continued)
The United. States Environmental Protection Agency (" EPA") administers programs established under the Federal Water Pollution Control Act and the Clean Air Act which affect the Plant.
The former Act establishes a national objective of complete elimination of discharges. of pollutants into the nation's water and creates a rigorous permit program designed to i
achieve this objective.
The latter Act empowers EPA to establish clean air standards which are implemented and enforced by state agencies.
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In addition, pursuant to the Federal Resource Conservation and Recovery Act of 1976
(" RCRA"), EPA regulates the generation, transportation, treatment, storage and disposal of hazardous wastes but not radioactive wastes.
The EPA has broad authority in administering thase programs, including the ability to require installation of pollution control and l'
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mitigation devices.
j The National Environmental Policy Act of 1969 ("NEPA") requires that de-j.
tailed statements of the environmental effects of major federal actions j
be prepared by federal agencies.
Major federal actions can include li-j eenses or permits issued to the Company by the NRC and other federal j-agencies for construction or operation of generation and transmission j
facilities. NEPA requires that federal licensing agencies aske an inde-j!
pendent evaluation of the environmental impact of, and alternatives to, the proposed action.
Future construction modifications or other activi-ties at the Plant could require federal licenses or approvals that in-O volve NEPA requirements.
The Company is also subject to regulation with regard to environmental j
matters and land use by various state authorities.
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Under their continuing jurisdiction, the NRC and one or more of the EPA and the State authorities having jurisdiction over the Company's facili-ties any modify permits or licenses which have already been issued, or j
impose new conditions on such permits or licenses, and may require addi-tional capital expenditures or require that the level of the operation of a unit be temporarily or permanently reduced.
See." Problems Affecting the Industry and the Company" above.
The Sponsors of the Company have agreed, subject to limited exceptions, (i) to provide the required capi-l tal not otherwise available, (ii) to take the total output of the Plant, and (iii) to pay all costs including capital costs.
i.
(d) Nuclear Fuel.
The Company has entered into a contract with the l
United States Department of Energy (" DOE") for. disposal of its speat nu-
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clear fuel, as required by the Nuclear Waste Policy Act ' of 1982, pursuant i
to which a fee of $1.00 per megawatt-hour is currently assessed ~against 3
generation of electricity and paid to the DOE quarterly.
Under this Act,
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the DOE has assumed the responsibility for disposal of spent ' nuclear fuel j
produced in private nuclear reactors.
In addition, Maine Yankee is obli-j gated to make a payment of $50,367,000 with respect -to generation prior i
to April 7,1983 (the date current DOE assessments began?,' all of which I
the Company has already collected from its customers.
- he Company.has elected under teras of this contract to make a single payment of this obligation prior to the first delivery of spent fuel to DOE, estimated to
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take place in 1998. The payment will consist of the 450,367,000, which t
j 1011A/3262A-5 i
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Maina Y:nkao Atomic Power Comp ny 1
C Form 10-K - 1985 j
ITEM 1 - BUSINESS (continued) is the approximate one-time fee charge, plus interest accrued at the 13-week Treasury Bill rate compounded on a quarterly basis from April 7, 1983 through the date of the actual payment.
Current costs incurred by i
j the Company under this contract are recoverable by it under the terna of l
its power contracts with its sponsoring utilities.
The Company has ac-crued interest costs of $13,804,000 for the period April 7,1983 through December 31, 1985.
a l
Maine Yankee has formed a trust to provide for payment of this long-ters i-fuel obligation. Funding of the trust win be made by semi-annual depo-sits of approximately $4,100,000 from December 1985 through May 1997 to-taling approximately $98,800,000.
The estimated liability, including interest due at the time of disposal, is approximately $169,600,000.
The Company estimates that trust fund deposits plus estimated earnings will
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aeet this total liability.
A U.S. Internal Revenue Service agent conducting a review of the Com-I pany's income tax returns for 1982 and 1983 has informed the Company he
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is taking exception to, among other things, a 1983 deduction for
$50,367,00] of its long-term permanent fuel disposal obligation and asso -
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cisted interest.
If the IRS were to prevail, this adjustaent would sig-
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nificantly affect reported current and deferred income taxes and invest-j ment tax credits. Management believes that the deductions taken are pro-1 per and intends to contest any proposed disanovance.
I Under the terms of a license amendment approved by the NRC in 1984, the present storage capacity of the spent fuel pool at the Company's plant will be reached in 1996 and after 1992 the available capacity of the pool would not accommodate a fun core removal.
The Atomic Safety and Licens-4 t
ing Board has approved the Company's proposal to teot a further modifica-tion which would, if implemented, permit storage capacity through the operating life of the plant.
That implementation would require further
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approval from the NRC.
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A Maine statute provides that after July 1,1992 spent nuclear fuel may j
not be stored on-site for a period exceeding three years from the date of l
removal of the fuel tros the reactor.
The Company estimates that ship-
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sents of spent nuclear fuel to the DOE will not commence until 1998.
The Company cannot predict whether, or to what extent, the Maine statute and storage capacity limitations referred to above may be modified and j
whether, or to what extent, they wi n affect the operation of the plant.
l (e) Decommissionina.
The NRC currently recognizes three decommissioning i
methods complete dismantling and removal, in place encapsulation or
" entombment" and mothballing - or a combination of these methods.
The Company currently proposes to use, consistent with its understanding of NRC and FERC staff policy, th* complete dismantling and removal method.
Through 1985 the Company had collected $9,034,170 for decommissioning j
costs in accordance with FERC orders approving' settlements issued August i
3, 1982 and April 10, 1985, requiring the Company to collect annual de-l commissioning charges of $1,826,100 which were subsequently increased to
$4,000,000.
The $4,000,000 is based on the approach of escalating, rather than level, collections over the operating life of the plant.
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Maine Ycakco Atomic Powar Company Form 10-K - 1985 i
ITDI 1 - BUSINESS (continued)
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The Decommissioning Fund balance as of December 31,1985 was $10,179,683 3
(including interest earned).
For a discussion of certain tax considera-
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tions with respect to decommissioning charge collections see Item 3-j
" Legal Proceedings"
" Rates."
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The State of Maine enacted a statute in 1982 which requires the Company to submit a detailed decommissioning financing plan to the Public Utili-ties Commission of the State of Maine ("PUC") for approval..The Company completed the filing of its decommissioning financing plan on January 18, 1984, but the PUC has not yet accepted the plan and the Company is unable 6
to predict whether the plan will be accepted.
Funds now being collected i
for decommissioning are deposited in a trust account by the Company pend-i ing their ultimate use, and are included in Deferred Charges and Other
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Assets on the accompanying balance sheet.
The statute further provides j
that if the decommissioning trust fund is insufficient to decommission
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the plant the Company as licensee would be responsible for the defi-j ciency, but if the Company were unable to provide the full amount the statute provides that owners would be jointly and severally responsible for the balance.
For further information on decommissioning, see Note 1 of the Notes - to Financial Statements.
i (f) Low-level Waste Disposal. On January 15, 1986, the federal Low-Lavel
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Radioactive Waste Policy Amendments Act was enacted.
This Act requires the present disposal sites to accept low-level nuclear wastes from other states until December 31, 1992. The Act also sets limits on the volume of waste each disposal facility must accept from each state, establishes t
ailestones for the non-sited states to establish sites within their
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states or regions (pursuant to regional compacts) and authorizes increas-i l
ing surcharges on waste disposal until 1992.
Af ter 1992 the operating
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disposal ' sites would be permitted to refuse to accept wastes generated outside their state or compact region.
On November 5, 1985, Maine voters approved an initiated proposal which 1
requires voter approval prior to construction or operation of any facil-~
ity in Maine for the storage or disposal of low-level radioactive wastes.
The proposal also requires voter approval prior to Maine's en-3 tering into any compact or agreement with ny State or the Federal i
government concerning the disposal or storage of low-level radioactive wastes inside or outside of Maine.
j The Company currently has the capacity to store approximately five years' production of -low-level waste at its plant site and intends to ship its
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wastes to present off-site facilities as long as possible in order to -
preserve that capacity.
The Company cannot now ' predict, however,. the i
long-ters effects of the Maine. legislation.
(g) Proposed Maine Yankee Referendum.
In January 1986, DOE identified two locations in Maine among 12 sites in seven eastern states under con-sideration as a second high-level nuclear waste disposal facility, should O
one become necessary, on the basis of a computer analysis of geological l
characteristics.
Some opponents of the location of any such high-level.
j nuclear waste disposal facility in Haine have linked the operation of a 1011A/3262A-7
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Maine Ycnkto Atomic P wer Corpany Form 10-K - 1985 ITEM 2 - BUSINESS (continued) l l
t nuclear generating facility in Maine with the determination of 'an appro-priate site for a high-level nuclear waste disposal facility and have urged that the Plant, the sole civilian nuclear generating facility lo-4 cated in Maine, be closed.
On March 21, 1986 a bill was introduced to the Maine Legislature to present the issue. to the voters in November-1 1986.
In its current form, the referendum proposal provides that the production of high-level radioactive waste af ter July 1, 1989 by elec-i tricity generating nuclear power plants operating in Maine (that is, by the Plant) would be prohibited. Management, believes that if a referendum l
proposal to close the plant were given a majority of the votes at a re-I.
forendum, it would be the subject of legal challenges.
The Company can-I not predict whether this issue will be presented to Maine voters or, if it is, the results of any such vote or, if it passes, the timing and out-come of any legal challenge.
The extent of the Company's obligations regarding certain costs relating to decommissioning, the ultimate storage of spent fuel generated by the Plant and other possible financial obliga-tions of the Company would have to be determined in the event that the 2
Plant is required to close.
The Company believes that the Maina Yankee Plant is both a safe and economical source of base load electric power, -
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and intends to tala all reasonable steps to provide for its continued i
operation.
(h) Employees. At Decenber 31, 1985, the Company had.297 employees.
ITEM 2 - PROPERTIES O
l The Plant is located on tidewater on Bailey Point in Wiscasset, Maine, on j
a 740-acre site which is owned in fee by the Company and is adequate for j
the Plant and for the associated switchyard facilities (which are owned j
in part and operated by Central Maine Power Company).
It is a nuclear powered electric generating plant, utilizing a pressur-1 ized water reactor, fueled with slightly enriched uranium oxide.
The j
nuclear steam supply system and certain other equipment were designed and j
fabricated by Combustion Engineering, Inc.
The turbine generator was supplied by Westinghouse Electric Corporation.
Stone & Webster Engineer-l ing Corporation, as engineer and constructor, designed and constructed 4
the Plant. The nuclear design and construction of the plant were super-l vised by the Nuclear Services Division of Yankee Atomic Electric Company, which has supervised the design and construction of other nuclear gener-ating plants in New England.
Construction of the Plant, which began in 1967, was completed in 1972 except for certain discharge temperature con-i trol facilities designed to meet the requirements of the Maine Board of
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Environmental Protection, which were completed in 1975.
Under the terms l
of the Indenture securing the First Mortgage Bonds, substantially all 2
electric plant of the Company is subject to a first mortgage lien.
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ITEM 3 - LEGAL PROCEEDINGS 1
j (a) General.
The operation of existing nuclear units and the construc-l tion of nuclear units presently planned in the United States continue to l
be a subject of public controversy.
Various groups have filed law suits and participated in administrative proceedings claiming that the present 4
i 1011A/3262A-8 i
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i Maine Ycnkee Atomic Pow:r Company i u Form 10-K - 1985 I *O ITEM 3 - LEGAL PROCEEDINGS (continued) 1 state of nuclear technology presents riska to public health ~ and safety i
and to the environment.
In addition, certain of these groups have pro-posed restrictive legislation relating to nuclear power.
Some of the j! '
claims made by such groups, if they should prevail, or the existence of the controversy itself, could cause substantial modifications to or ex-l tended shutdowns of plants presently in operation.
See Item 1, BUSINESS, j
" Problems Affacting the Industry and the Company" and Item 2, PROPERTIES,
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above.
i The Maine Yankee Plant was declared commercial on December 28,'1972, with regular operation at approximately 570 megawatts electric (net) starting j'
on January 1,1973, in accordance with the Power Contracts.
Hearings on i
the Company's application for a forty-year license at fun operation were F
completed in 1972 and the license for fun operation at approximately 790 megawatts electric ' (net) was granted by the Atomic Energy Commission
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("AEC"), the predecessor of the. NRC, on June 29, 1973.
During 1978 the i
NRC authorized an increase in the output rating of the Plant to approzi-r mately 850 megawatts electric (net).
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The Power Contracts between Maine Yankee and its Sponsors require the Sponsors to continue to make monthly payments thereunder throuan 2002 j
whether or not ~ the Plant is in operation except under circumstances not i
now applicable which would entitle the Sponsors to cancel the Power Con-I~
tracts.
Additional Power Contracts, which have the effect of extending '
I the terms of the Power Contracts from 2002 to the end of the useful life
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and the completion of decommissioning of the Plant, have been executed by
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j the Company and its Sponsors.
The Sponsors are also obligated under the Capital Funds Agreements with Maine Yankee to pay their respective shares of the capital requirements of Maine Yankee, not otherwise obtainable, which would include the cost of any modifications to the plant that may
,j' be required pursuant to an NRC order.
I l
The Price-Anderson Act is a Federal statute providing, among other i
things, that the maximum liability for damages resulting from a nuclear i
j incident would be the greater of the' anximum amount' of' financial protec-l tion required to be carried by a licensee or $640 million, based on the current number of licenses. As required by the NRC regulations, prior to operation of a nuclear reactor, the licensee of the reactor is required to insure against this exposure by purchasing the maximum available pri-vate insurance (presently $160. minion), the balance.to be covered ' by I
retrospective premium insurance and by an indemnity agreement with the i
NRC.
Under amendments to that Act, owners of operating nuclear facili-f ties may be assessed a retrospective premium of up to $5 million for each reactor owned in the event of any 'one nuclear incident occurring at any i
reactor in the United States, with a maximum assessment of $10 minion per year per reactor owned.
The Price-Anderson Act will expire in 1967 unless it is extended by the Congress.
At present, the Congress is con-
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sidering several bills that have been introduced that amend and modify 1
the Act in various ways.
The Company cannot predict whether'the Act win j
be extended as currently in effect or, if amended, what effect any such amendment may have on the ' operation of the Plant.
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I In addition to the Price-Anderson Act, the Company carries an au-risk j
nuclear property damage insurance in the amount of $500 minion plus ad-i dicional excess nuclear property insurance-in the amount of $550 mil-1 1011A/3262A-9 1
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4 Maine Yankee Atomic Power Company i
Form 10-K - 1985 ITEM 3 - LEGAL PROCEEDINGS (continued)
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lion.
The additional coverage is provided by the nuclear electric util-
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ity industry's Bermuda-based insurance pool, which provides such coverage from commercial sources and from participating utilities through a combi-nation of current premium and retrospective premium adjustments.
If the insurance pool experiences losses in excess of its capacity to pay them a L
participating utility may be assessed a retrospective premium adjustaant i
of up to 7.5 times its annual premium with respect to losses in any pol-l icy year.
I (b) Rates.
On March 23, 1984, the Company filed with the FERC proposed j
amendments to its power contracts designed to increase its revenues by
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approximately $26 million, based on a test year ending December 31, 1982.
The amendments would have increased return on common equity from 10.0% to 17.5%, increased the annual collection for decommissioning from
$1.8 million to $17.9 million, and changed certain ratemaking practices.
i Because of a 1984 amendment to the Internal Revenue Code the Company on j
July 31 amended its request to defer implementation of the tax-related i
portion ($8.2 million) of the $17.9 million until -it obtains a ruling i
from the Internal Revenue Service (" IRS") as to the amount that would be
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deductible for income tax purposes under the new law.
The deductible i
amount would be the lesser of (1) the decommissioning charge included in I
the utility's cost of service for ratemaking purposes. or (2) the amount i
established by the IRS ruling.
On April 10, 1985, the FERC approved a settlement agreement in the Com-pany's rate case regarding amendments to the Company's power contracts.
Effective January 15, 1985, the st.ttlement agreement provides for (1) au j,
increase in the Company's rate of return on common equity from 10.0% to 15.5%,
(2) an increase in annual decommissioning collections 'from i
$1,826,100 to $4,000,000 (exclusive of any income tax liability), (3) a i
current return on up to 50% of construction work in progress ("CWIP") and i
nuclear fuel in process ("NFIP") and (4) a change in the depreciation i
estimate to reflect a plant operating life equal to the NRC operating
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license life (that is, to the year 2008).
In addition, the settlement agreement further provides that the Company may not request a change in l
the rate of return on equity or the decommissioning collection amount, or an increase in its depreciation ra tes, to take effect prior to January 15, 1988.
(c) Nuclear Regulatory Commission Penalty.
In October 1985, Maine Yankee i
received notice from the NRC that it intended to impose an $80,000 civil j
penalty on the Company as a result of two unrelated violations of the Plant's technical specifications which occurred in August and September
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i 1985.
The Company has implemented procedures to correct.the conditions I
which led to the violations and, af ter contesting the level of severity 4
of the violations, paid the civil penalty in early 1986.
j ITEM 4 - SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS 1
Not applicable.
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1011A/3262A-10 0-i
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Maine Yankee Atomic Power Company mh Form 10-K - 1985 2
PART II ITEM 5 - MARKET FOR THE REGISTRANT'S COMMON EQUITY AND RELATED STOCK-HOLDER MATTERS.
The Company's Common Stock, owned by the Company's ten utility Sponsors, is not publicly traded.
Transfer of the Common Stock is restricted by the Company's bylaws.
The Company has paid cash dividends on its Common Stock to its ten utility Sponsors in each year of operation, 1973 through 1985. The following table shows cash dividends paid for years 1985 and 1984:
Shares 1985 1904 Outstanding Per Share Per Share January 500,000
$ 2.40 February 500,000 3.30 April 500,000 6.00 3.35 July 500,000 5.00 3.35 l
October 500,000 4.50 3.35
$1Z.i.2.9.
$1L.21 The payment of dividends on the Company's Common Stock is subject to the following restrictions:
(1)
The Company's First Mortgage Indenture provides that the Company shall not declare or pay any dividend on any class of its stock, except out of earned surplus, and shall not declare or pay any such dividend or directly or indirectly make any payment on account of the purchase, re-demption, acquisition or other retirement of any shares of its stock, unless, after giving effect to such declaration or payment, the Company's Equity shall be at least 35% of Plant Construction Financing, and the Company's Common Equity shall be at least 30% of Plant Construction F1-nancing.
The Company was in compliance through December 31, 1985, with the dividend restriction of the First Mortgage Indenture.
(2) The Company's Articles of Incorporation provide that so long as any shares of the Company's Cumulative Preferred Stock, 7.48% Series (Sinking Fund) are outstanding, the payment of dividends on the Common Stock (other than dividends in Common Stock) and the making of distributions thereon is limited to 50% of Net Income Available for Dividends on Common Stock for the preceding twelve months if the Common Stock Equity (af ter such action) is less than 20% of Total Capitalization, and to 75% of such Net Income if such Common Stock Equity (after such action) is 20% or more but less than 25% of Total Capitalization. The Company was in compliance through December 31, 1985, with the dividend restriction of the Articles of Incorporation.
-Il-1011A/3262A-11
O O
O~
Maine Yankee Atomic Power Company Fora 10-K-1985 Item 6 - Selected Financial Data (Dollars in Thousands Except Per Share Amounts)
ITEM 6 - SELECTED FINANCIAL DATA.
1985 1984 1983 1982 1981 Selected Income Statement Data:
Electric Operating Revenues
$134,785
$128,080
$120,471
$110,000
$102,650 Earnings Applicable to Common Stock 9,879 6,730 6,437 6,477 6,698 Earnings Per Share of Common Stock 19.76 13.46 12.87 12.95 13.40 Dividends Declared Per Share of Common G
Stock 20.70 12.45 12.75 13.00 13.35 4
Selected Balance Sheet Data:
- r Total Assets
$370,427
$371,075
$388,105
$378,650
$346,882 5
i First Mortgage Bonds 76,750 81,924 86,294 91,825 96,887 yh.
l Notes Payable to MYA gg Fuel Company 37,850 39,350 47,750 47,750 32,975
?o Long-Tern Fuel Disposal Liability 64,171 59,076 53,656 45,565 36,669 ma s a Redeemable Preferred Stock 9,055 10,069 10,2 %
10,796 11,295 gy
@. E '
. x l
l 1011A/3262A-12 w
1 i
f.
i Maine Yankee Atomic Power Company 1
Form 10-K - 1985 iO l
V~
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND' i
RESULTS OF OPERATIONS I
For a period of thirty years, which commenced on January 1,1973, in ac-l cordance with the Power Contracts and subject to certain limitations, l
each Sponsor receives its entitlement percentage of Plant output and is obligated to pay its entitlement percentage of the Company's total costs, including a return on invested capital, regardless of the level of opera- -
(
tion of the Plant.
The following is management's analysis of certain significant factors which have affected the Company's operating results and financial condi-
{
tion.
j Operatina Results.
1 i
As described in Note 3 of Notes to Financial Statements below, the FERC j
approved certain ratemaking changes effective January 15, 1985 affecting j
the following areas:
i o The rate of return on common equity was increased from -10.0% to 15.5% resulting in increased net income and taxable earnings.
o Depreciation expense declined in 1985 by $2.0 million as a result of extending the depreciation recovery period from the year 2002 i
(the original power contract life) to the year 2006 (NRC license life, covered under the additional power contract).
j o Decommissioning expense increased by $2.1 million in 1985.
The annual decommissioning collection was increased from $1.8 million to $4.0 million.
o The Company was also allowed to earn a current return on up to 50%
of its investment in CWIP and NFIP (subject to certain limitations) on a current basis.
Total fuel expense in 1985 showed little change from 1984 resulting froe 3
l comparable levels of generation and cost.
In 1984, fuel amortization j
expense reflected the increasing costs for new fuel. inserted into the reactor core during the 1984 refueling shutdown.
This higher fuel cost was offset by a 10.4% ' reduction in production.
The higher production i
during 1983 reflected the absence of a refueling shutdown.
Refueling shutdowns occur at intervals of approximately fourteen to sixteen months.
{
Nuclear fuel disposal cost for 1984 declined due to the full recovery, as of October 1983, of disposal cost associated with fuel burned prior to April 7, 1983.
j Rising costs associated with materials and services used in the Plant's continuing operation and maintenance and the cost of meeting additional j
and ongoing regulatory requirements resulted in the 1985' increase in j
these expenses over the 1984 levels.
Increased operating and maintenance l
expenses in 1984 over 1983 also reflected the impact of the Plant's shut-down for its scheduled maintenance and refueling outage.
j l
I 1011A/3262A-13
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Maine Yankas Atomic Power Company Form 10-K - 1985
{
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND.
j RESULTS OF OPERATIONS (continued)
The reduction in Income Tax Expense for 1985 was due primarily to a FERC l
compliance audit adjustment to reverse deferred taxes previously recorded on the equity component of anowance for funds used during construction
("AFC") and aHowance for funds used for nuclear fuel ("AFN").
Federal and state income taxes for 1984 decreased by $4.1 million from the 1983 -
i level of $8.0 minion.
The decrease in 1984 reflects increased utiliza-l tion and amortization of investment tax credits.
i MYA Fuel Note Interest decreased by $1.9 minion -in 1985 from the 1984 l
1evel of $5.6 million due to lower levels of borrowings coupled with low-i er interest rates.
Interest charges on the MYA Fuel Notes increased by -
}
$.5 minion in 1984 over the 1983 level of $5.1 minion.
The 1984 in-crease reflected slightly higher interest rates as compared to 1983, off-set by lower average principal balances outstanding in 1984..
Fuel Disposal Liability Interest for 1985 decreased by $.3 million, from 1
the 1984 level of $5.4 million, reflecting a reduction in interest rates.
In 1984 Fuel Disposal Liability Interest increased by $2.1 mil-lion over the 1983 level of $3.3 minion, which reflected interest for only a portion of the year (April 7,1983 through December 31, 1983)..
i Other Interest charges decreased in 1985 and 1984 primarily due to reduc-tion in short-term borrowings which fluctuate with day-to-day operational requirements.
l l
Fluctuations in the amounts of allowance for funds normally occur as the r
j result of changes in the level of investments in construction and nuclear j
fuel in process, and/or the rate used for capitalisation of these funds.
1 During 1985 amounts recorded as allowances for funds reflect substantial reductions due to implementation of the rate case settlement whereby up l
to 50% of the carrying costs of funds used for construction and nuclear
}
fuel are recovered currently through rates.
An increase in the allowed cost of equity funds sitigated the effect of this reduction in the case l
I of equity AFC, and resulted in a net increase in equity AFN.
Liquidity and Capital Resources Financina and Capitalization During 1985 the Company was able to rely on internany generated funds to seet its capital requirements for the Acquisition of Nuclear Fuel - and j
Construction of Electric Property.
i Capital requirements for the acquisition 'f nuclear fuel in 1985 were l
$17.3 minion.
Requirements for the construc* ion of electric property j-were $15.5 minion in 1985.
Major expenditures for Electric Property in 1985 included replacement of the main generator components, renewal of I
the main condenser and the construction of additional low-level waste j
storage facilities.
The Company's current budget for construction 'of l
electric property and procurement of nuclear fuel for 1986 is $27.8 mil-j lion excluding AFC.
See Note 10, Commitments and Contingencies, for ad-
{
ditional information concerning the Company's construction program and l
the projected Acquisition of Nuclear Fuel requirements for 1986 through l
1990.
1011A/3262A-14 x
i
.. ~. -
e Maine Yankee Atomic Power Company i
Form 10-K - 1985 O
ITEM 7 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS (continued)
The Company, as well as the nuclear electric industry in general, has been plagued by common problems in recent years including those of in-creasing operating costs and expenditures for plant modifications attri-butable to greater regulatory requirements and uncertainties caused by political involvement in nuclear utility regulation.
It is not possible at this tiac to predict what impact these uncertainties would have on the future financial operation of the Company.
1 Liquidity 1
I.
In addition to funding its - short-tera needs the Company must also fund the payment of its spent fuel disposal liability of $50.4 million and accrual of interest which amounted to $13.8 million as of December 31, d
1985. Maine Yankee has entered into an Indenture of Trust with a trustee to provide for payments for future disposal services for spent nuclear fuel used prior to April 7,1983.
Payments from the trust to the Depart-1 ment of Energy are scheduled to.begin in 1998. Funding of the trust will 4
be made by semi-annual deposits of $4.1 million from December 1985 I
{
through May 1997 totaling $98.8 million.
The estimated liability includ-2 ing ' interest due at time of disposal is approximately $169.0 million.
The trust fund deposits plus estimated earnings are projected to meet i
this total liability.
O 4
On September 30, 1985, the Company entered into a Eurodollar Revolving Credit Agreement covering the issuance of up to $20 million principal amount of promissory notes to a group of major international banks.
The Public Utilities Commission of the State of Maine (PUC) approved the ar-3 rangement on February 18, 1986, and the Company expects to be able to
}
commence borrowing in the spring of 1986 af ter receipt of an appropriate order of the Securities and Exchange Commission.
i ITEM 8 - FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA t
The response to this Iten is submitted as a separate section of this re-port.
(See page 28 of this report.)
l j
ITEM 9 - DISAGREEMENTS ON ACCOUNTING AND FINANCIAL DISCLOSURE Not applicable.
4 O
1011A/3262A-15 4
w Maine Yankee Atomic Power Company Form 10-K - 1985 PART III ITEM 10 - DIRECTORS-AND EXECUTIVE OFFICERS OF THE REGISTRANT A.
Directors The directors of the Company and their principal occupations and all positions and offices with the Company are as follows:
Name, Age and Year First Elected Director Principal Occupation Charles E. Monty, 59, 1971, Executive Vice President and Chief President (Principal Execu-Operating Officer, Central Maine tive Officer) and Director Power Company John B. Randassa. 57, 1975, Vice President, Nuclear Resources, Executive Vice President, Central Maine Power Company Chief Operating Officer and Director William F. Burt, 60, 1978, Assistant to the President, COM/
Director Energy Services Company Richard A. Crabtree, 39, Vice President, Finance and Chief 1985, Director Financial Officer, Central Maine Power Company.
John F. G. Eichorn, Jr., 62, Chairman and Chief Executive 1971, Director Officer, Eastern Utilities Associates Walter F. Fee, 65, 1981, Executive Vice President of Director Engineering and Operations, Northeast Utilities Service Company E. James Ferland, 44, 1981, President and Chief Operating Director Officer, Northeast Utilities Frederic E. Greenman, 49, Vice President, New England Power 1984, Director Company Thomas A. Greenquist, 57, Chairman and President, Bangor Hydro-1973, Director Electric Company James E. Griffin, 58, 1973, President and Chief Executive Offi-Director car, Central Vermont Public Service Corporation Robert J. Harrison, 54, 1984, President and Chief Executive Director Officer, Public Service Company _
of New Hampshire 1011A/3262A-16
R
'b Maine Yankee Atomic Power Company-Form 10-K - 1985 ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued)
A.
Directors (continued) t G. Melvin Hovey, 56, 1984, President and Chief Executive Offi-Director cer, Maine Public Service Company k4 Matthew Hunter, 51, 1983, Senior Vice President, Customer I
Director Services and Division Operations.
l Central Maine Power Company J
j Carroll R. Lee, 36, 1979, Vice President - Engineering and Director Operations, Bangor Hydro-Electric Company 1
John W. Rowe, 40, 1984, President and Chief Executive
{
Director Officer, Central Maine Power Company 1
j Jeffrey D. Tranen, 39, 1984, Vice President, New England Power Director Company Each of the Directors, except John W.
Rowe, has for the past five j
years been, and each of the Directors is now an officer or employee j
of one of the Sponsors or an associated company thereof.
Mr. Rowe j
was elected President, Chief Executive Officer and a Director of Cen-l tral Maine Power Company on December 15, 1983, effective January 9, l
1984, and on February 17, 1984, was elected a Director of Maine Yan-kee Atomic Power Company.
Mr. Rowe previously served as Senior Vice President of Consolidated Rail Corporation (" Conrail") since 1982 and as Vice President - Law of Conrail since 1980.
Prior to 1980, Mr.
Rowe was affiliated with the law firm of Isham, Lincoln & Beale, Chi-cago, Illinois.
Each of the Sponsors is represented on the Company's Board of Direc-l tors, but there is no formal arrangement with respect to such repre-sentation. The Directors are elected at the annual meeting of stock-holders and hold office until their successors are elected and quali-l fied.
i i
l 1
17-1011A/3262A-17 i
I
Maine Yankee Atomic Power Company c
Form 10-K - 1985 O
ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT I
(continued)
B.
Executive Officers The following are the executive officers of the Company with all po-L.
sitions and offices held:
Name g
Office and Year First Elected Charles E. Monty 59 President (Principal Exacutive Officer) - 1983 Director - 1971 1
John B. Randazza 57 Executive Vice President, Chief Operating Officer and Director
- 1975 Patrick S. Lydon 43 Vice President, Finance and Admin-istration (Principal Financial P
Officer) - 1985 i
1 Donald Hunter 52 Vice President, Nuclear Services
- 1984 i
l Charles D. Frizzle, Jr.
43 Vice President and Manager of Operations - 1983 Lee E. Maillet 36 Treasurer - 1985 Robert S. Howe 46 Comptroller and Chief Accounting l
Officer (Principal Accounting l
Officer) - 1980 l
l:
t l
William M. Finn 49 Secretary and Clerk - 1984 l
Carol W. Oliva 38 Assistant Treasurer - 1982 Each of the executive officers, except for Donald Hunter, has for the J
i past five years been and is now an officer or unployee of the Company l
or one of the Sponsors or an associated company thereof.
Mr. Hunter j
served as president of Pioneer Steel from 1979 to 1983, prior to being j
employed by Yankee Atomic Electric Company in 1983, and was elected a vice president of Maine Yankee Atomic Power Company in 1984.
The ex-j ecutive officers are elected annually by the Board of Directors and i
{
hold office until their successors are elected and qualified.
There are no family relationships between any directors or executive officers nor any arrangements or understandings pursuant to which any
{
were selected as officers or directors.
1011A/3262A-18 l i
Maina Yankee Atomic P;wer Company Farm 10-K - 1985
)
ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued)
C.
Other Directorships The following directors of the registrant hold other directorships as follows:
Director Other Directorships Held William F. Burt Vermont Yankee Nuclear Power Corporation Yankee Atomic Electric Company Connecticut Yankee Atomic Power Company l
COM/ Energy Services Company Richard A. Crabtree Central Securities Corporation Cumberland Securities Corporation The Union Water-Power Company p
John F. G. Eichorn, Jr.
Eastern Utilities Associates (Trustee)
Montaup Electric Company 1
EUA Service Corporation EUA Power Corporation Blackstone Valley Electric Company l
Eastern Edison Company l
Yankee Atomic Electric Company Connecticut Yankee Atomic Power Company Vermont Yankee Nuclear Power Corporation Walter F. Fee Northeast Utilities Service Company i
Northeast Nuclear Energy Company The Connecticut Light and Power Company Connecticut Yankee Atomic Power Company i
Holyoke Water Power Company j
Holyoke Power and Electric Company j
Western Massachusetts Electric Company 1
The Quinnehtuk Company The Rocky River Realty Company l
l Research Park,- Inc.
The Shelton Canal Company Vermont Yankee Nuclear Power Corporation l
Yankee Atomic Electric Company E. James Ferland Northeast Utilities Service Company l
Northeast Nuclear Energy Company The Connecticut Light and Power Company Connecticut Yankee Atomic Power Company i
9 Holyoke Water Power Company Holyoke Power sad Electric Company Western Hassachusetts Electric Company The Quinnehtuk Company The Rocky River Realty Company Research Park, Inc.
The Shelton Canal Company Yankee Atomic Electric Company Vermont Yankee Nuclear Power Corporation The New England Council Junior Achievement of North Central Con-necticut, Inc.,
2 1011A/3262A-19
e r:
Maine Yankee Atomic _ Power Company Form 10-X - 1985
-ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued).
1 C.
Other Directorships (continued)
Frederic E. Greenaan New England Electric Transmission Corporation New England Hydro-Transmission Corporation New England Hydro-Transmission Electric Company, Inc.
New England Wholesale Electric. Company Vermont Yankee Nuclear Power Corporation.
~ snkee Atomic Electric Company Connecticut Yankee Atomic' Power Company I
Granite State Electric Company Thomas A. Greenquist Bangor Hydro-Electric Company Merrill Bankshares Company Merrill Trust Company East. Branch Improvement Company James E. Griffin Central Vermont Public Service Corporation Connecticut Valley Electric Co., Inc.
Vermont Electric Power Company, Inc.
Central Vermont Public Service Corporation-Bradford Hydroelectric, Inc.
Central Vermont Public Service Corporation-East Barnet Hydroelectric, Inc.
~
Yankee Atomic' Electric Company Connecticut Yankee Atomic Power Company Vermont Electric Transmission Company, Inc.
Vermont Yankee Nuclear Power Corporation Vermont National Bank Vermont Financial Services Corporation Electric Council of New England Edison Electric Institute Robert J. Harrison Vermont Yankee Nuclear Power Corporation Yankee Atomic Electric Company Public Service Company of New Hampstare Electric Council of New. England Atomic Industrial Forum Amoskeng Industries, Inc.
Manchester Associates Numerica Savings Bank American Heart Association, N.H. ~ Affiliate G. Melvin Hovey Maine & New Brunswick Electrical Power Company, Limited Maine Public Service Company Maine Electric Power Company, Inc.
Matthew Hunter Central Securities Corporation Cumberland Securities Corporation
~
1011A/3262A-20
ei Maine Yankee Atomic Power Company Form 10-K - 1985
.O ITEM 10 - DIRECTORS AND EXECUTIVE OFFICERS OF THE REGISTRANT (continued)
C.
Other Directorships (continued)
Carroll R. Lee Maine Electric Power Company Charles E. Monty Central Maine Power Company Maine Electric Power Company, Inc.
The Union Water-Power Company Kennebec Water Power Company Central Securities Corporation Cumberland Securities Corporation Q-M Enterprises, Inc.
Androscoggin Reservoir Company Interia, Inc.
Kennebec Hydro Resources, Inc.
Maine Energy Resources, Inc.
John B. Randazza Vermont Yankee Nuclear Power Corporation Connecticut Yankee Atomic Power Company Yankee Atomic Electric Company John W. Rowe New England Council O
Central Maine Power Company Maine Electric Power Company, Inc.
Central Securities Corporation Cumberland Securities Corporation The Union Water-Power Company Forum A Northcare, Inc.
Jeffrey D. Tranen Connecticut Yankee Atomic Power Company Vermont Yankee Nuclear Power Corporation Yankee Atomic Electric Company ITEM 11 - EXECUTIVE COMPENSATION The Company has paid no remuneration to its officers or directors except for Charles D. Frizzle, Jr., Vice President and Manager of Operations, a full-time employee of the Company through October, 1985.
In November 1985 Mr. Frizzle became a full-time esployee of the lead sponsor (Central
~
Maine Power Company).
In complying with regulatory requirements, the Company has reimbursed Central Maine Power Company for services rendered by its employees including Maine Yankee officers and directors.
See Itc.a 13 "Certain Relationships ant' Related Transactions". 1011A/3262A-21 i
~
t 4
Maine Yankee Atomic Power Company l
Form 10-K - 1985-ITEM 12 - SECURITY OWNERSHIP OF CERTAIN B:MEFICIAL OWNERS AND MANAGEMENT 3
The following table shows the ownership of the Company's 500,000 shares of $100 par value Common Stock, all of which is issued and outstanding and all of which is held of record and beneficially.
None is held by management.
Amount Percentage Name Owned of Class a
Central Maine Power Company 190,000 shares 38%
Edison Drive -
l Augusta, Maine 04336 i
New England Power Company 100,000 20 25 Research Drive Westborough, Massachusetts 01581 r
i The Connecticut Light and Power Company 60,000 12 P.O. Box 270 Hartford, Connecticut 06141 Bangor Hydro-Electric Company 35,000 7
33 State Street
{
Bangor, Maine 04401 1
Maine Public Service Company 25,000 5
i 209 State Street.
[
Presque Isle, Maine 04769 Public Service Company of New Hampshire 25,000 5
1000 Elm Street i
Manchester, New Hampshire 03105 Cambridge Electric Light Company 20,000 4
675 Massachusetts Avenue Cambridge, Massachusetts 02139 Montaup Elect.ric Company 20,000 4
P.O. Box 2333 Boston, Massachusetts 02107 i
Western Massachusetts Electric Company 15,000 3
I-P.O. Box 270 Hartford, Connecticut 06141 i
Central Vermont Public Service Corporation.10,000 2
77 Grove Street
]
Rutland, Vermont 05701 M shares Agg%
! 1011A/3262A-22
[
=
y Maine Yankee Atomic Power Company g
E Form 10-K - 1985 t
[
ITEM 13 - CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS c
During the construction period, no return was paid to Sponsors on the t
money paid by them for Common Stock, but a return (at the rate of 7% per annum through November 30, 1970 and e.t the rate of 10% per annum there-
)
af ter) was charged to plant in a manner similar to that now followed by b
utility companies in recording plant construction costs.
The amounts so charged were incorded as paid-in capital.
This practice terminated as of December 31, 1972, the last day of the last month of the construction period.
These amounts are to be paid to the Sponsors on the redemption
)
of Common Stock.
The Company's First Mortgage Indenture and the provi-sions of its Articles of Incorporation relating to its capital stock con-tain various limitations on redemption.
During 1985 and 1984, the Company paid $7,512,550 and $6,727,259, respec-tively, to Yankee Atomic Electric Company, an associate of several of the Sponsors, for services at cost for its engineering and nuclear services department.
Prior to the execution of the Capital Funds Agreements and g
Power Contracts, Central Maine Power Company, one of the Sponsors, ad-t vanced necessary construction funds to the Company at cost.
Subsequent 6
to that time, Central Maine Power Company has furnished the Company cer-tain engineering, administrative and legal services, and furnished cer-1 tain facilities at cost, and electric service at its filed rates.
During 1985 and 1984, Central Maine Power Company was reimbursed in the amount g
[
of $4,462,073 and $4,845,377, respectively, for such services.
It is 2.-
O e Pectea en e v *ee ^te ic 81ectric ce Pe r d ce trat aa1 e rewer cem-(
pany will continue to perform such services for the Company in the fu-ture, for which they will be reimbursed by the Company.
j 2
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1 d
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m i
O 1 -
1011A/3262A-23 E
N
Maine Yankee Atomic Power Company Form 10-X - 1985 O
PART IV ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K (a) (1) and (2): The response to this portion of Item 14 is submitted as a separate section of this report on page 4
(3) Articles of Incorporation and Bylaws Exhibit Docket at Page Incorporated herein by reference:
3-1 Articles of Incorporation 3.1, 3.3 2-38547 l
3-2 Amendment to Exhibit 3-1 setting forth terms of Cumulative Preferred Stock 3.2 2-46226 3-3 Bylaws, as amended 3.2 2-38547 3-4 Amendment to Exhibit 3-3 3.5 2-46226 Incorporated Documents Filed SEC Herewith (4) Instruments defining the rights of Exhibit Docket at Page O
security holders Incorporated herein by reference:
4-1 First Mortgage Indenture from the Company to Old Colony Trust Company, Trustee, dated as of November 1,1970 3.2 1-6554 4-2 First Supplemental Indenture from the Company to The First National Bank of Boston, Trustee, dated as of March 1, 1971 4
70-4976 4-3 Second Supplemental Indenture from the Company to The First National Bank of Boston, Trustee, dated as of December 1,1972 4.3 2-46226 Filed herewith:
4-4 Third Supplemental Indenture from the Company to the First National. Bank of Boston, Trustee, dated as of-February 15, 1984 4.4 O,
1011A/3262A-24 4
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Maina Yankee Atomic Power Company Fern 10-K - 1985 ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM f) 8-K (continued)
(10) Material Contracts Incorporated herein by reference:
10-1 Composite copy of Power Contract between the Company and Sponsors (Included in pro-dated as of May 20, 1968 spectus in 2-46226) 10-2 Composite copy of Capital Funds Agreement between the Company and Sponsors, dated as of (Included in pro-May 20, 1968 spectus in 2-46226) 10-3 Stockholders Agreement dated as of May 20, 1968 among the (Included in pro-Sponsors spectus in 2-46226) 10-4 Loan Agreement between the Company and MYA Fuel Company, B-1 70-5805 dated as of August 26, 1976 B-1 70-6765 as amended B-1 70-7117 i
10-5 Eurodollar Revolving Credit Agreement between the Company and a group of international banks, with Union Bank of t
Switzerland as Agent Bank, dated as of September 30, 1985 B-1 70-7165 Filed herewith:
1 i
10-1.1 Amendment No. 1 to Exhibit 10-1, dated as of March 1, 1984 10-1.1 10-1.2 Amendment No. 2 to Exhibit 10-1, dated as of January 1,1984 10-1.2 10-1.3 Amendment No. 3 to Exhibit 10-1, dated as of October 1, 1984 10-1.3 10-1.4 Additional Power Contract ba-tween the Company and Sponsors, dated as of February 1, 1984 10-1.4 i
10-2.1 Amendment No. 1 to Exhibit 10-2, dated as of August 1, 1985 10-2.1 10-6 Indenture of Trust dated as of October 12, 1982 between the Com-pany and Maine Nacional Bank re-lating to decommissioning trust fund.
10-6 1011A/3262A-25
=_
Mains Ycnkas Atomic Power Cocpany -
Form 10-K - 1985 oc ITEM 14 - EXHIBITS, FINANCIAL STATEMENT SCHEDULES, AND REPORTS ON FORM 8-K (continued)
(10) Material Contracts (continued) 10-7 Indenture of Trust dated as of Oc-tober 16, 1985 between the Company and Norstar Bank of Maine relating to the spent fuel disposal funds.
10-7 1
(11) Statements re computation of per share earnings Not applicable (12) Stateme.ts re computation of ratios Not applicable (13) Annual report to security holders l
Not applicable j
(18) Letter re change in accounting principles Not applicable
()
(19) Previously unfiled documents Not applicable (22) Subsidiaries of the registrant None (23) Published report concerning matters submitted to vote of secur-ity holders Not Applicable (24) Consents of experts and counsel Not Applicable (25) Power of attorney Not Applicable (28) Additional exhibits None (b) Reports on Form 8-K O
1 None 10llA/3262A-26 _ _
Mains Ycnkso Atomic Power Co: piny i
Form 10-K - 1985 l
SIGNATURES
.O Pursuant to the requirements of Section 13. or 15 (d) of the Securi-ties Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
MAINE YANKEE ATOMIC POWER COMPANY By Robert S. Howe, Comptroller and -
Chief Accounting Officer (Principal Accounting Officer)
March 28, 1986 Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By By Charles E. Monty, President Frederic E. Greenman, Director (Principal Executive Officer)
March 28, 1986 and Director March 28, 1986 By Thomas A. Greenquist, Director By March 28, 1986 Patrick S. Lydon, Vice President,
()
Finance and Administration By (Principal Financial Officer)
James E. Griffin, Director March 28, 1986 March 28, 1986 By By John B. Randazza, Executive Robert J. Harrison, Director Vice President, Chief Operating March 28, 1986 Officer and Director March 28, 1986 By G. Melvin Hovey, Director By March 28, 1986 William F. Burt, Director March 28, 1986 By Matthew Hunter, Director By March 28, 1986 Richard A. Crabtree, Director March 28, 1986 By Carroll R. Lee, Director 3y March 28, 1986 John F. G. Eichorn, Jr., Director harch 28, 1986 ty John W. Rowe, Director By Merch 28,1986 Walter F. Fee, Director March 28. 1986 By Jeff rey D. Tranen, Director By March 28, 1986 E. James Ferland, Director March 28, 1986 l i 1011A/3262A-27
.i Maine Yankee Atomic Power Company Form 10-K - 1985 I
Maine Yankee Atomic Power Company FORM 10 1985 ITEM 8, 14(a) (1) AND'(2)
INDEX OF FINANCIAL STATEMENTS AND SCHEDULES 4
The following financial statements of the registrant required to be in-cluded in Item 8 are listed below:
- 8. age, Report of Independent Public Accountants 29 Financial Statements:
Statement of Income for each of the three years ended December 31, 1985 30 i
Balance Sheet at December 31, 1985 and 1984 31 i
Statement of Capitalization at December 31, 1985 and 1984 33 Statement of Changes in Common Stock Investment for each of the three years ended December 31, 1985 34 Statement of Sources of Funds for Acquisition
()
of Nuclear Fuel and Construction of Electric-Property for each of the three years ended December 31, 1985 35 Notes to Financial Statements 36 The following Financial Statement Schedules:
Eage i
V - Electric Property and Nuclear Fuel 49 4
VI - Accumulated Provision for Depreciation and Amortization of Electric Plant and.
Nuclear Fuel 52 l
VIII-Reserves Exclusive of Reserves for Depreciation 53 IX - Short-Term Borrowings 54 All other schedules are omitted as the required information is not ap-plicable or the information is presented in the Financial Statements or j
related notes.
O i
- t 1011A/3262A-39
[.
Maine Yankee Atomic Power Company 1
i Form 10-K - 1985 i
REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS TO THE BOARD OF DIRECTORS OF MAINE YANKEE ATOMIC POWER COMPANY:
We have examined the balance sheet and statement of capitalization of-s MAINE YANKEE ATOMIC POWER COMPANY (a Maine corporation) as of Decem-ber 31,1985 and 1984, and the related statements of income, changes in common stock investment and sources of funds for acquisition of nuclear fuel and construction of electric property for each of the three years in the period ended December 31, 1985.
Our examinations were made in accor-dance with generally accepted auditing standards and, accordingly, in-4 cluded such tests of the accounting records and sueb other auditing pro-cedures as we considered necessary in the circumstances.
In our opinion, the financial statements referred to above present fairly i
the financial position of MAINE YANKEE ATOMIC POWER COMPANY as of Decem-ber 31,1985 and 1984, and the results of its operations and ita sources of funds for acquisition of nuclear fuel and construction of electric 4
s property for each of the three years in the period ended December 31, 1985, in conformity with generally accepted accounting principles applied on a consistent basis.
Our examinations were made for the purpose of forming an opinion on the basic financial statements taken as a whole. The schedules listed in the index of financial statements are presented for ' purposes of complying with the Securities and Exchange Commission's rules and are not part of d
j the basic financial statements.
These schedules have been subjected to -
the auditing procedures applied in the examinations of the basic finan-
.i cial statements and, in our opinion, fairly state in. all material re-
)
spects the financial data required to be set forth therein in relation to the basic financial statements taken as a whole.
4 d
ARTHUR ANDERSEN & CO.
Boston, Massachusetts, February 14, 1986 (except with respect to the matters discussed in Note 10, j
as to which the date is March 21, 1986).-
4 j 1011A/3262A-40
Maint Ycnkoo Atomic Power Company Form 10-K - 1985 4
d Maine Yankee Atomic Power Company STATEMENT OF INCOME (Dollars in Thousands except Per Share Amounts) 4 Year Ended December 31, 1985 1984 1983 ELECTRIC OPERATING REVENUES
$134,785
$128,080
$120,471 OPERATING EXPENSES Fuel Amortization (Notes 1 and 12) 30,128 29,759 29,183 Disposal Cost (Notes 1 and 12) 5,567 5,320 9,638 j
Operation 39,809
. 13,534 7,420 36,895 30,092 Maintenance 15,240 i
Depreciation (Notes 1 and 12) 8,379 10,357-9,909
]
Decommissioning (Note 1) 3,918 1,826
~1,826 Taxes Federal and State Income (Note 2) 3,200 3,851 7,975 Local Property 5.349 5,250 4,879 Total Operating Expenses 111.590 106,792 100,922 OPERATING INCOME 23,195 21,288 19,549 OTHER INCOME (EXPENSE)
Allowance for Equity Funds Used:
During Construction (Note 1) 431 410 308 For Nuclear Fuel (Note 1) 437 336 361 Other, Net (275) 131 (334)
INCOME BEFORE INTEREST CHARGES 23,788 22,165 19,884 INTEREST CHARGES Long-Tera Debt (Note 5) 6,572 7,306 7,597 MYA Fuel Notes (Note 6) 3,677 5,614 5,093 Fuel Disposal Liability (Note 1) 5,095 5,420 3,289 Other Interest Charges (Note 4) 137 840 1,366 Allowance for Borrowed Funds Used:
~
During Construction (Note 1)
(314)
(439)
(343)
For Nuclear Fuel (Note 1)
(1,935)
(4,071)
(4,334)
Total Interest Charges 13,232-14,670 12,668 i
NET INCOME 10,556 7,495 7,216 Dividends on Preferred Stock 677
,73 779 l
EARNINGS APPLICABLE TO COMMON STOCK
$ 9.879
$ 6.730
$ '6.437 I
SHARES OF COMMON STOCK OUTSTANDING JDQ.a.QSQ M
dQO.a.NS.E EARNINGS PER SHARE OF COMMON STOCK
_ $1L].ft
$1hs,ft
$M DIVIDENDS DECLARED PER SHARE OF COMMON STOCK
$2,QJ,Q,
$M
- $M O
o The accompanying notes are an integral part of these financial statements.
1911A/3262A-41 '
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- 1 Maine Yankee Atomic Power Company Form 10-K - 1985 O
Maine Yankee Atomic Power Company BALANCE SHEET (Dollars in Thousands)
ASSETS December 31, 1985 1984 ELECTRIC PROPERTY, at Original Cost (Notes 5 and 12) (Sch. V)
$314,392
$295,486 Less: Accumulated Depreciation and Amortization (Note 1) (Sch. VI) 101,630 99,306 212,762 196,180 Construction Work in Progress 1,463 10,867 Net Electric Property 214,225 207,047 NUCLEAR FUEL, at Original Cost (Notes 1 and 12) (Sch. V)
Nuclear Fuel in Reactor 131,720 125,031 Nuclear Fuel-Spent 166,032 126,404 Nuclear Fuel-Stock 4,407 4,529 302,159 255,964 Less: Accumulated Amortization (Ncte 1)
(Sch. VI) 221,832 191,705 80,327 64,259 Nuclear Fuel in Process 27,683 56,588 Net Nuclear Fuel 108,010 120,847 Net Electric Property and Nuclear Fuel 322,235 327,894 CURRENT ASSETS Cash (Note 4) 1,912-100 Accounts Receivable 16,834 18,393 Materials and Supplies, at Average Cost 6,429 5,929 Prepayments 3,064 2,723 Total Current Assets 28,239 27,145 DEFEPRED CHARGES AND OTHER ASSETS (Note 1)
Accumulated Prepaid Income Taxes 4,463 2,660 Plant Decommissioning and Fuel Disposal Funds in Trust 14,347 6,189 Other Deferred Charges and Other Assets 1,143 7,187 Total Deferred Charges and Other Assets 19,953 16,036
$ h 4_2Z
$371.075 The accompanying notes are an integral part of these financial statements. 1011A/3262A-42
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Maine Yankee Atomic Power Company Form 10-K - 1985 Maine Yankee Atomic Power Company BALANCE SHEET (Dollars in Thousands)
STOCKHOLDERS' INVESTMENT AND LIABILITIES t
December 31, l
-1985 1984 i
CAPITALIZATION (See Separate Statement)
Common Stock Investment
$ 67,857
$ 68,135 Redeemable Preferred Stock 9,055 10,069 Long-Term Debt 76,750 81,924 Total Capitalization 153,662 160,128 LONG-TERM FUEL DISPOSAL LIABILITY (Note 1) 64,171 59,076 i
NOTES PAYABLE TO MYA FUEL COMPANY (Note 6) 37,850 39,350 CURRENT LIABILITIES Current Sinking Fund Requirements (Note 5) 258 205 Accounts Payable 7,569 11,213 Fuel Disposal Cost Payable (Note 1) 1,236 1,732 Dividends Payable 2,769 1,388 Accrued Interest and Taxes 2,462 3,386 Other Current Liabilities 228 226 Total Current Liabilities 14,522 18.150 COMMITMENTS AND CONTINGENCIES-(Note 10)
RESERVES AND DEFERRED CREDITS Plant Decommissioning Reserve (Note 1)
(Sch. VIII) 10,846 6,446 Deferred Credits Accumulated Deferred Income Taxes (Note 2) 69,220 70,019 Unamortized Investment Tax Credits (Note 2) 11,916 10,048 Unamortized Gains on Reacquired Debt (Note 1)-
8,090 7,712 Other Deferred Credits 150 146 Total Reserves and Deferred Credits 100,222 94,371 i
$370.427
$h The accompanying notes are an integral part of these financial statements.
' O 1011A/3262A-43
t r
Maine Yankee Atomic Power Company Form 10-K - 1985 4
Maine Yankee Atomic Power Company STATEMENT OF CAPITALIZATION (Dollars in Thousands)
December 31, 1985 1984 COMMON STOCK INVESTMENT Common Stock, $100 Par Value, 500,000 Shares Authorized and outstanding 4 50,000
$ 50,000 Other Paid-in Capital 16,783 16,805 Capital Stock Expense (164)
(186)
Gain on Redemption of Preferred Stock 1,003 793 Premiums on Preferred Stock 133 150 Retained Earnings 102 573 67,857 68,135 REDEEMABLE PREFERRED STOCK - 7.48% Series,
$100 Par Value, Authorized 170,000 Shares, Outstanding 90,545 in 1985 and 100,690 in 1984 (Note 8) 9,055 10,069 O
j LONG-TERM DEBT (Note 5)
First and General Mortgage Bonds Series A - 9.10 % due May 1, 2002 42,758 44,749 Series B - 8 1/2% due May 1, 2002 26,484 29,205 Series C - 7 5/8% due May 1, 2002 7,847 8,272 77,089 82,226
^
Less: Current Sinking Fund Requirements 258 205 Unamortized Debt Discount, Net of Premium 81 97 76,750 81,924 l
Total Capitalization
$M
$g i
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1011A/3262A-44
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Maine Yankee Atomic Power Company Form 10-K - 1985 Maine Yankee Atomic Power Company STATEMENT OF CHANGES IN COMMON STOCK INVESTMENT for the Three Years Ended December 31, 1985 (Dollars in Thousands)
Amount at Retaine'd Shares Par Value Other, Net Earnings Total Balance-December 31, 1982 500,000
$50,000
$17,390 6
$67,396 Add (Deduct):
Net Income 7,216 7,216 Cash Dividends Declared on -
(6,375)
(6,375)
Common Stock Preferred Stock (779)
(779)
Redemption of Preferred Stock 104 104 Capit:1 Stock Expense 8
8 Balance-December 31, 1983 500,000 50,000 17,502 68 67,570 Add (Deduct):
Net Income 7,495 7,495 O
Cash Dividends Declared on -
Common Stock (6,225)
(6,225)
Preferred Stock (765)
(765)
Redemption of Preferred Stock 49 49 Capital Stock Expense 11 11 Balance-December 31, 1984 500,000 50,000 17,562 573 68,135 Add (Deduct):
Net Income 10,556 10,556 Cash Dividends Declared on -
Common Stock (10,350) (10,350)
Preferred Stock (677)
(677)
Redemption of Preferred Gtock 210 210 Capital Stock Expense (17)
(17)
Balance-December 31, 1985 500.000
$gg
$17.755
$_ R
$67.857 The accompanying notes are an integral part of these financial statements.
O
- 1011A/3262A-45
Maina Ycnkso Atocic Powar Company Form 10-K - 1985 t
Maine Yankee Atomic Power Company STATEMENT OF SOURCES OF FUNDS FOR ACQUISITION OF NUCLEAR FUEL AND~ CONSTRUCTION OF ELECTRIC PROPERTY Year Ended December 31, 1985 1984 1983 FUNDS PROVIDED Internal Sources From Operations Net Income
$10,556
$ 7,495
$ 7,216 Fuel Amortization 30,128 29,759 29,183 Depreciation and Decommissioning 12,297 12,183 11,735 Deferred Income Taxes and Investment Tax Credits, Net (734) 2,177 15,220 Allowance for Equity Funds Used for Nuclear Fuel and During Construction (868)
(746)
(669)
Long-Tera Fuel Disposal, Net of Interest Recovered as AFN and Interest Income 3,820 3,569 6,592 4
55,199 54,437 69,277 Less:
f Sinking Fund Requirements on Long-Tera Debt 5,137 4,175 6,917 Preferred Stock 1,014 227 500 Dividends on Preferred Stock 677 765 779 Dividends on Common Stock 10,350 6,225 6,375 Plant Decommissioning Fund Deposits 3,508 1,938 1,677 j
Fuel Disposal Trust Deposits 4,118 Deferred Recoverable Expenditures (6,081)
(781) 919 Other, Net (1,678)
(3,128)
(3,891) 17,045 9,421 13,276 (Increase) Decrease in Working Capital, Exclusive of Notes Payable to Banks and Sinking Fund Requirements Cash and Receivables (253) 14,976 (19,237)
Other Current Assets (841)
-(715)
(796)
Other Current Liabilities (3,681)
(227) 1,120 (4,775) 14,034 (18,913)
Net Available from Internal Sources 33,379-59,050 37,088 External Sources Increase (Decrease) in Notes Payable:
1 MYA Fuel Company (1,500)
(8,400)
Banks (16,175) 10,875 Net Available from External Sources (1,500)
(24,575) 10,875
$21aglg
$34.475
$i22212 FUNDS USED FOR ACQUISITION OF NUCLEAR FUEL AND CONSTRUCTION OF ELECTRIC PROPERTY Acquisition of Nuclear Fuel
$17,291'
$18,935
$39,545~
Allowance for Equity Funds Used for Nuclear Fuel (437)
(336)
(361)
Construction of Electric Property 15,456~
16,286.
9,087 Allowance for Equity Funds Used During Construction (431)
(410)
(308)
O
$2AaMZg
$34.475
$322212 The accompanying notes are an integral part of these financial statements.
3 1011A/3262A-46
s I
s' Maine Yankee Atomic Power Company Form 10-K - 1985 Maine Yankee Atomic Power Company NOTES TO FINANCIAL STATEMENTS l
1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES i
1-The Company:
The Company owns and operates a pressurized-water nu-4 clear-powered electric generating plant with a current net capacity of approximately 850 megawatts.
The plant commenced commercial operation on January 1, 1973.
The following New England electric utilities own all of the Company's common stock:
Ownership Sponsor / Participant Interest Central Maine Power Company 38%
New England Power Company 20 The Connecticut Light and Power Company 12 Bangor Hydro-Electric Company 7
Maine Public Service Company 5
Public Service Company of New Hampshire 5
l Cambridge Electric Light Company 4
Montaup Electric Company 4
Western Massachusetts Electric Company 3
Central Vermont Public Service Corporation 2
ASSI For a period of thirty years, which commenced on January 1,1973, in accordance with the Power Contracts and subject to certain lim-4 itations, each participant receives its entitlement percentage of plant output and is obligated to pay its entitlement percentage of j
the Company's total costs, including a return on invested capital, 3
i regardless of the level of operation of the plant.
j 2
Under amendments to the Power Contracts as approved by the Federal Energy Regulatory Commission (FERC) order issued April 10, 1985, i
the Company increased the amount of collections for future decom-missioning costs, its rate of return on common equity was in-creased, and other ratemaking practices were changed, as of Janu-ary 15, 1985.
See Note 3 cf Notes to Financial Statements.
J
]
Regulation: The Company is subject to the regulatory authority of the FERC, the Nuclear Regulatory Commission (NRC) and the Public j
Utilities Commission of the State of Maine (PUC) as to rates, ac-counting, operations and other matters.
i
!O I ll14A/5429A-1
. =. - -
1 Maine Yankee Atomic Power Company Form 10-K - 1985 Maine Yankee Atomic Power Company NOTES TO FINANCIAL STATEMENTS 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Depreciation:
Depreciation is provided using a composite remaining life method designed to fully depreciate the original cost of elec-tric plant over the plant operating life.
The FERC's most recent order extended the depreciation recovery period effective January l
15, 1985 to correspond to the NRC operating license life,. that is, through October 2008.
Previously the depreciation recovery period extended through May 2002.
Under the composite method, at the time depreciable property is retired, the original cost,. plus _ cost of removal, less salvage, of such property is charged to accumulated depreciation.
1 Decommissioning:
The Company has accounted for decommissioning costs in accordance with FERC orders.
The Company began collecting annual decommissioning charges of $1,826,100 beginning December 7, 1981.
The FERC's most recent order increased the allowed decommis-sioning charge to an annual level ot $4,000,000, effective January 15, 1985.
i The annual decommissioning charge of $4,000,000 (exclusive of any
! 'O income tax liability) was stipulated for the period January 15, 1985 through January 15, 1988.
The Company's most recent study done in 1983 and adjusted in 1984 estimated decommissioning costs of i
$115,467,000 (in 1983 dollars).
1 The Company intends to update its decommissioning study and reevalu-ate the adequacy of the annual charge in 1987.
4 Funds being collected for decommissioning are deposited in a trust account by the Company pending their ultimate use, and are included in Deferred Charges and. Other Assets on the accompanying balance j
sheet.
i Deferred Charges:
In response to events and NRC orders requiring-the Company to undc,rtake significant analyses of specified ' operating j
design procedures and eqaipment, the Company adopted a policy of 4
deferring and amortizing over future periods the. costs of, unusual and irregularly occcrrink stuales and inspectioca.
The Company an- -
ortizes rhese costs over three years, starting on the completion date of the project.
Such costs are recoverable under the terms of the Power Contracts.
j Amortization of Nuclear Fuel: The cost of nuclear fuel in the reac-tor is amortized to Fuel Expence based on the ratio of energy pro-duced during the period to the estimated total core capability.
l'uel Disposal Cort:
In 1983 tha Conpany entered into a contract j
with the Department of Energf (DOE) for disposal of its spent nu -
~
clear fuel, pursuant to which a fee of $1.00 per megawatt-hour is 1114A/5429A-2,
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Form 10-X - 1985 i
Maine Yankee Atomic Power Company l
NOTES TO FINANCIAL STATEMENTS 1.
SUMMARY
OF SIGNIFICANT ACCOUNTING POLICIES (continued)
J assessed against current generation and is paid to the DOE quarter-ly.
The Company also has an obligation of $50,367,000 with respect to generation prior to April 7, 1983, all of which the Company has already collected from its customers.
The Company has elected under terms of this contract to make a single payment of thir obligation prior to the first delivery of spent fuel to DOE, scheduled to begin in 1998.
Interest on the obligation accrues at the 13-week Treasury Bill rate compounded on a quarterly basis from April 7,1983 through i
the date of the actual payment.
Interest accrued through Decem-ber 31, 1985 amounted to $13,804,000. The Company has formed a trust to provide for payment of this long-term fuel obligation.
Funding of the trust will be made by cemi-annual deposits of approximately
$4,100,000 from December 1985 through May 1997 totaling approximately -
$98,800,000.
The trust fund deposits plus estimated earnings are projected to meet the total estimated liability of $169,600,000.
Allowance for Funds Used During Construction (AFC) and allowance for Funds Used for Nuclear Fuel (AFN):
Under the Company's. stipulated j
rate case settlement agreement, the Company earns a current. return on i
up to 50% of Construction Work in Progress (CWIP) and 50% of Nuclear j
Fuel in Process (NFIP), subject to certain limitations.
(See Note 3,.
Ratemaking Matters).
The Company records the net cost of borrowed funds and the allowed rate of return on equity funds.used to finance its remaining construction and nuclear fuel acquisition costs as AFC i
and AFN.
The amount of the allowance recorded is determined by multiplying the applicable average monthly balance of CWIP and NFIP by the weighted average cost rate of the capital used to finance the respective additions.
4 i
The following table contains the rates used for the most recent three annual periods:
J t
AFC AFN on CWIP on NFIP 1985 11.25%
10.74%
i 1984 6.17 10.56 1983 6.60 8.83 i
Unamortized Gain or loss on Reacquired Debt: Gains and losses on j.
bonds uacquired to satisfy sinking fund requirements of First Mortgage Bonds are deferred and amortized to income over the' re-maining original terms of the applicable series as prescribed by -
the Uniform System of Accounts of the FERC.
1114A/5429A-3 i
i
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Maina Yanksa Atomic Pswer Co:pany i
Form 10-K - 1985 Maine Yankee Atomic Power Company NOTES TO FINANCIAL STATEMENTS 2.
INCOME TAX EXPENSE f
The components of Federal and state income taxes reflected in' the Statement of Income are as follows:
Year Ended December 31, 1985 1984 1983-
)
(Dollars in Thousands)
Federal Current
$ 2,386 956
$(5,112)
Deferred (1,862)
(1,043) 19,113 Investment tax credits, net 1,868 2,640 (7,138) 2,392 2,553 6,863 State Current 1,548 718 (2,133)
Deferred (740) 580 3,245 808 1,298
-1,112 l
2 Total Federal and state income taxes
$1.29.9.
$ 3.851
$ 7.975 O
The Company provides deferred taxes for the' tax effects of all tim-ing differences, primarily accelerated depreciation of property and nuclear fuel for tax purposes.
Investment tax credits utilized to reduce Federal income taxes cur-rently payable are deferred and amortized over the lives of the re-i lated assets.
At December 31, 1985, the Company had. approximately
)
$8,400,000 of additional investment tax credit available to reduce future Federal income taxes otherwise payable.
A U.S. Internal Revenue Service agent conducting a review of the j
Company's income tax returns for 1982 and 1983 has informed the Com-pany he is taking exception to, among.other things, a 1983 deduction for $50,367,000 of its long-term permanent fuel disposal' obligation and ussociated interest.
If the IRS were to prevail, this adjust-ment would significantly affect reported current and deferred income taxes and investment tax credits.
Management believes that the de-ductions taken are proper and intends to contest any proposed discl-lowance.
The fc11owing table reconciles the statutory Federal income tax rate to the rate determined by dividing the total Federal income tax ex-pense by income before that expcnee.
t l
1114A/5429A-4 I
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4 Maine Yankee Atomic Power Company Form 10-K - 1985 O
Maine Yankee Atomic Power Company NOTES TO FINANCIAL STATEMENTS 2.
INCOME TAX EXPENSE (continued) f Dollars in Thousands 1985 1984 1983 Amount Amount Amount Statutory Federal income tax rate
$ 5,956 46.0
$4,622 46.0
$6,476 46.0 Increase (reduction) in taxes resulting from:
Amortization of invest-4 ment tax credits (2,167) (16.7) (2,669) (26.6)
(124)
-(.9)
AFC/AFN Equity Adjustaent per FERC Compliance Audit (1,736) (13.4)
Other 339 2.6 600 6.0 511 3.6 Calculated rate
$Q M ~ $M M
$M M
3.
RATEMAKING MATTERS 1
On April 10, 1985, the FERC approved a settlement agreement in the Company's rate case regarding amendments to the Company's power con-tracts.
Effective January 15, 1985, the settlement agreement pro-vided for (1) an increase in the Company's rate of return on common equity from 10.0% to 15.5%, (2) an increase in-annual decommission-ing collections from $1,826,100 to $4,000,000 (exclusive of any in-come tax liability), (3) a current return on up to 50% of CWIP and NFIP and (4) a change in the depreciation recovery period to reflect a plant operating life equal to the NRC operating license life (that j-is, to the year 2008).
In addition, the settlement agreement pro-vides that the Company may not request a change in the rate of re-
[
turn on equity or the decommissioning collection amount, or an in-crease in its depreciation rates, to take effect prior to Janu-ary 15, 1988.
i i
4.
NOTES PAYABLE TO BANKS The Company had bank lines of credit totaling $21,000,000 as of De-
'l cember 31, 1985, of which $13,000,000 required an annual fee of 3/8 of 1%'of the line and $7,000,000 required 1/2 of 1% of the line.
The remaining $1,000,000 line requires a compensating balance of 10%
1 of the line. There were no borrowings cutstanding on these lines as of Decemoer 31, 1985.
i
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1114A/5429A-5 i
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C Maine Yankee Atomic Power Company Form 10-K - 1985 Maine Yankee Atomic Power Company NOTES TO FINANCIAL STATEMENTS 5.
FIRST MORTGAGE BONDS The annual sinking fund requirements of the First Mortgage Bonds currently outstanding for each of the years 1986 through 1991 amount to $4,775,000.
Bonds repurchased in advance amounted to $5,611,000 at December 31, 1985 and $5,249,000 at December 31, 1984.
Under the terms of the Indenture securing the First Mortgage Bonds, substantially all electric plant of the Company is subject to a first mortgage lien.
6.
MYA FUEL COMPANY NOTES The Company has a Loan Agreement covering the issuance of up to
$50,000,000 principal amount of promissory notes to the MYA Fuel Company, a wholly-owned subsidiary of Broad Street Contract Ser-vices, Inc.
Borrowings are secured by the Company's nuclear fuel investment and the Company pays
.t commitment fee at the annual rate of 1/8 of 1% of the line.
Certain other information relating to this loan arrangement is as follows:
Year Ended December 31, 1985 1984 1983 (Dollars in Thousands)
Promissory notes outstanding
$37,850
$39,350
$47,750 Average daily outstanding l
borrowings
$37,560
$46,575
$47,750 Highest level of borrowings
$46,350
$47,750
$47,750 Annual interest rate at end of periods 8.59%
10.38%
11.12%
Effective average annual interest rate 9.79%
12.05%
10.67%
In September 1985 the Spon' sors of the Company, with the exception of one owning 7% of the Company's stock, agreed to guarantee uncondi-tionally the payment obligations of the Company under a Loan Agree-taent with MYA Fuel Company.
Each Sponsor's guarantee is limited to the percentage of any payment default corresponding to its respec-tive percentage under its Power Contract and Capital Funds Agreement with Maine Yankee.
The amended Loan Agreement also provides that, in the absence of-an Event of Default (as defined) or a Terminating Event (as defined),
the arrangement will require not less than one year's notice of i
termination after September 23, 1987. After that date, the arrange-ment will automatically extend for additional sixmonth periods until terminated by either party. 1114A/5429A-6
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Maine Yankee Atomic Power Company Form 10-K - 1985 Maine _ Yankee Atomic Power Company NOTES TO FINANCIAL STATEMENTS 7.
EURODOLLAR REVOLVING CREDIT AGREEMENT Effective September 30, 1985, the Company entered into a Eurodollar Revolving Credit Agreement with a group of major international banks under which the Company may borrow amounts up to $20,000,000 to meet its short-term requirements.
Each loan will be due and payable one year af ter the date of the loan (unless an earlier agreement termination date applies), and will bear interest based on the LIBOR rate plus 3/4 percent. The loans will be secured by a second lien on the Company's nuclear fuel inventory (excluding nu -
clear fuel inserted in the reactor) and on certain rights under its Power Contracts and Capital Funds Agreements requiring payments or financing of fuel-related costs.. The Agreement may be terminated on one year's notice by the banks.
The PUC approved the arrange-ment in February 1986, and the Company expects to be able to com-mence borrowing in the spring of 1986 af ter receipt of an appropri-ate order of the Securities and Exchange Commission..
t 8.
REDEEMABLE PREFERRED STOCK The Company must redeem and cancel 6,000 shares annually of the J
7.48% Series Preferred Stock.at par value and, at the election of the Company, an additional 6,000 shares may be redeemed and cancel-led at par on each redemption date.
The optional provision is not cumulative.
The Company may redeem, in whole or in part, any additional shares 4
of the 7.48% Series Preferred Stock upon not less than thirty or i
more than fifty days' notice at $105.24 per share on or before De-cember 31, 1987, and at amounts decreasing to $100.00 per share thereafter, in each case plus accrued dividends.
Preferred Stock repurchased in advance and not cancelled amounted to 11,455 shares at December 31, 1985, 7,310 shares at December 31, 1984 and 11,045 shares at December 31, 1983.
9.
PENSION PLANS
(
The Company has two noncontributory pension plans which cover sub-stantially all full-time employees.
The Company's policy is to fund pe:ision costs accrued on an annu:1 basis, including amounts sufficient to amortize unfunded pr!or service costa over 30 years.
Pension costs accrued approximated $557,000 for 1985, $569,000 for 1984 and $246,000 for 1983.
- O
- 1114A/5429A-7 i
s Maina Ycnkrea Atomic Power Company a
Form 10-K - 1985 Maine Yankee Atomic Power Company NOTES TO FINANCIAL STATEMENTS 9.
PENSION PLANS (continued)
January 1, 1985 1984 Actuarial present value of accumelated plan benefits:
Vested
$ 717,277
$ 498,000 i
Nonvested 355,552 383,000
$g
$ 881.000 i
Net assets available for benefits
$3.004.541
$L.35LjMQ In addition to providing pension benefits, the Company provides cer-tain health care and life insurance benefits for substantially all of its retired employees.
These and similar benefits for active employees are provided through insurance companies acting-either as
)
an insurer or plan administrator, and premiums are based on the ben-efits paid during the year.
The Company recognizes the cost of pro-viding these benefits through charging expense in the current peri-od.
Health care and life insurance benefits aggregated approximate-ly $481,000 in 1985 and $395,000 in 1984.
The cost of providing O
these benefits to retirees is not currently separable from the cost of providing similar benefits for active employees.
10.
COMMITMENTS AND CONTINGENCIES Construction:
The Company anticipates construction expenditures to amount to $n.3 minion for 1986.
5 Nuclear Fuel:
The Company anticipates nuclear fuel expenditures of
$16.5 minion for 1986 (exclusive of AFN) and $140.2 million for the period 1987 through 1990 (exclusive of AFN).
Proposed Maine Yankee Referendum:
In January 1986, DOE identified two locations in Maine among 12 sites in seven eastern states under consideration as a seccad high-level nuclear waste disposal facility, should one become necessary, on the basis of 'a ' computer analysia of 1
geological characteristics.
Some opponents of the location of any such high-level nuc1 car waste disposal facility in Maine have linked the operation of a nuclear generating facility in Maine with the de-termination of an appropriate site for a high level nuclear waste disposal facility and have urged that the Plant, the sole civilian nuclear generating facility located in Maine, be closed.
On March 21, 1986 a bill was introduced to the Maine Legislature to present i
the issue to the voters in November 1966.
In its current form, the referendum proposal provides that the production of high-level radio-active waste after July 1,
1989 by electricity generating nuclear O
power plants operacing in Maine (that is, by the Plant) would.be pro-hibited. Management believes that if a referendum proposal to close
~
l the plant were given a majority of the votes at a referendum, it I
would be the In4A/5429A-8
~
4 Mains Ycnksa Atomic Pcwsr Company a
Form 10-X - 1985 Maine Yankee Atomic Power Company NOTES TO FINANCIAL STATEMENTS 10.
COMMITMENTS AND CONTINGENCIES (continued) i subject of legal challenges. The Company cannot predict whether this issue will be. presented to Maine voters or, if it is, the results of any such vote or, if it passes, the timing and outcome of any legal challenge.
The extent of the Company's obligations regarding certain costs relating to decommissioning, the ultimate storage of spent fuel generated by the Plant and other possible financial obligations of the Company would have to be determined in the event that the Plant is required ' to close.
The Company believes that the Maine Yankee Plant is both a safe and economical source of base load electric power, and intends to take all reasonable steps to provide for its continued operation.
Nuclear Fuel Storage: Under current operating conditions, the stor-age capacity of the Company's on-site spent fuel pool will be reached 4
in 1996 and af ter 1992 the available capacity of the pool will not accommodate a full core removal.
The Company is testing a further -
modification designed to provide more compact fuel storage which would, if implemented, expand capacity to permit storage through the operating life of the plant.
However, implementation would require approval from the NRC.
A Maine statute provides that after July 1, 1992, spent nuclear fuel may not be stored onsite for more than three j
years after removal from the reactor.
The Company estimates - that l
shipments of spent nuclear fuel to a Department of Energy (DOE) dis-posal site will not commence until 1998.
The Company cannot predict whether, or to what extent, the Maine statute and storage capacity limitations referred to above may be modified and whether, or to what extent, they will affect the operation of the plant.
Nuclear Insurance:
The Price-Anderson Act is a Federal statute de-fining, among other things, the maximum liability for damages result-ing from a nuclear incident.
Under amendments to that Act, owners of operating nuclear facilities may be assessed a retrorpective premium-of up to $5 million for each reactor owned in the event of any one nuclear incident occurring at any reactor in the United States, with l
l a maximum assessment of $10 million per year per reactor owned.
The Price-Anderson Act will expire in 1987 unless it is extended by i
the Congress. At present, the Congress is considering several bills j
that have been introduced that amend and modify the Act in various l
ways. The Company cannot predict whether the Act will be extended as currently in effect or, if amended, what effect any such amendment may have on the operation of the Plant.
The Company also carries all-risk nuclear property damage insurance for its statutory liabilities under the Price-Anderson Act through I
the nuclear electric utility industry's Bermuda-based insurance pool, which provides such coverage from commercial sources and from parti-
}
cipating utilities through a combination of current premium -and retrospective premium adjustments.
If the insurance pool experiences j
l losses in excess of its capacity to pay them, a participating util-j
_44
[
1114A/5429A-9
s.
Maine Yankee Atomic Power Company a
Form 10-K - 1985.
Maine Yankee Atomic Power Company NOTES TO FINANCIAL STATEMENTS 11.
UNAUDITED QUARTERLY FINANCIAL DATA ity may be assessed a retrospective premium adjustment of up to 7.5 times its annual premium for the excess portion of the additional coverage.
Based on current premium rates this adjustment could range up to approximately $7 million.
Unaudited quarterly financial data pertaining to the results of operations are shown below.
Quarter Ended March 31 June 30 September 30 December 31 (Dollars in Thousands, Except Per Share Amounts) 1985 Electric Operating Revenues
$32,347
$33,789
$30,847
$37,802 Operating Income 5,668 6,128 5,315 6,084 Net Income 2,622 2,797 2,668 2,469 Earnings Per Share of Common Stock 4.90 5.26 5.00 4.60 1984 Electric Operating Revenues
$30,439
$31,998
$33,762
$31,881 Operating Income 5,499 5,446 5,260 5,083 Net Income 1,870 1,870 1,872 1,883 Earnings Per Share of Common Stock 3.35 3.36 3.36 3.39 12.
SUPPLEMENTARY INFORMATION TO DISCLOSE THE EFFECTS OF CHANGING PRICES (UNAUDITED)
The following information is provided in accordance with the re-quirements of Statements of Financial Accounting Standards Numbers 33 and 82 and is intended to be viewed as an estimate of the approx-imate effect of inflation ratuer than as a precise measure. These accounting standards were issued as a result of the impact of gener-al inflation and changes in specific prices which have causeo dis-tortions in traditional accounting measurements of income and capi-tal.
Current Cost Accountina:
The current cost of nuclear generating plant is estimated based on an enginee::ing study of the current cost (per kilowatt) of replacing the present generating plant, while nu-clear fuel is restated using current market prices of uranium, con-version, enrichment and fabrication services. Nuclear fuel expense was developed by dividing the estimated current cost of the in-reac-s tor fuel by the expected generation of the present fuel core and applying that rate to the actual generation produced in 1985.
1114A/5429A-10. -
s.
Maine Yankee Atceic Power Company Form 10-K - 1985-Maine _ Yankee Atomic Power Company NOTES TO FINANCIAL STATEMENTS 12.
SUPPLEMENTARY INFORMATION TO DISCLOSE THE EFFECTS OF CHANGING PRICES (UNAUDITED) (continued)
Effects of Rate Regulation: Under present ratemaking practices only the historical cost of nuclear generating plant depreciation and the historical cost amortization of nuclear fuel is recoverable through rates.
The excess or deficiency of the net costs of nuclear gener-ating plant and nuclear fuel, as stated in terms of current costs as compared to historical costs, is not recoverable through rates, and is reflected as a reduction or adjustment to net recoverable cost.
During a period of inflation, holders of monetary assets ' suffer a loss of general purchasing power while holders of monetary liabili-ties experience a gain.
The gain from the decline in purchasing power of net amounts owed is primarily attributable to the substan-tial amount of debt which has been used to finance property, plant, equipment and nuclear fuel. Because of regulation, the Company does not have the opportunity to realize a holding gain on debt and is i
limited to recovery of only the embedded cost of debt capital.
(J generating plant and amortization of nuclear fuel have not been ad-justed.
The Company's operation and maintenance expenses include the average effects of changing prices during the period and, there-fore, no adjustments have been made to them.
Historical income tax expense is not adjusted since only historical t
costs are deductible for income tax purposes.
4 j
O
- 1114A/5429A-11 a
+
_.,_.-r,
Maine Yankee Atomic' ever Company Form 10-K - 1985 Maine Yankee Atomic Power Company NOTES TO FINANCIAL STATEMENTS 12.
SUPPLEMENTARY INFORMATION TO DISCLOSE THE EFFECTS OF CHANGING PRICES (UNAUDITED) (continued)
Statement of Income and Operations Adjusted for Changing Prices for the Year Ended December 31, 1985 (Dollars in Thousands)
Current Cost Average Historical 1985 Cost Dollars Operating Revenue
$134,785
$ 134,785 Operation and Maintenance 55,049 55,049 Fuel Expense 35,695 27,590 Depreciation and Decommissioning 12,297 69,834 Taxes 8,549 8,549 Interest Charges 13,232 13,232' Other, Net (593)
(593)
Income (Loss) from Operations (excluding reduction to net recoverable amount)
- $_lL,15fi
$ L a b jlZft)
Net increase in specific prices (current cost) of Plant and Nuclear Fuel held during the year *
$ 349,232 Adjustment to net recoverable amount (264,941)
Effect of increase in general price level (46,940)
Net 37,351 Gain from decline in purcLasing power of net amounts owed 9,556
$ 46.907
- At December 31, 1985 current cost of Plant and Nuclear Fuel, net of accumulated depreciation and amortization was $1,432,866, while histor-ical costs or net cost recoverable through rates was $322,235.
The estimated current cost of Plant includes an increase of $363,000 (28%)
O-in 1985, reflecting a new engineering study which refines the current cost estimates reported since 1982.
1114A/5429A-12
)
Maine Yankee Atomic Power Company Form 10-K - 1985 Maine Yankee Atomic Power Company NOTES TO FINANCIAL STATEMENTS i
- 12. SUPPLEMENTARY INFORMATION TO DISCLOSE THE EFFECTS OF CHANGING PRICES (UNAUDITED) (continued)
Five Year Comparison of Selected Financial Data Adjusted for Effects of Changing Prices (In Thousands of Average 1985 Dollars, except per share amounts and indices).
Year Ended December 31.
1985 1984 1983 1982 1981 i
Operating Revenues i
Historical as reported
$134,785 $128,080 $120,471 $110,000 $102,650 Adjusted for general i
inflation
$134,785 $132,650 $130,080 $122,594 $121,416-f Current Cost Information Loss from operations (excluding reduction to net recoverable O
t)
- csa.876) *c27.o48) *c37.92$) *(37.12o) *cs7.ees)
Loss from operations per common share (after preferred dividend requirement)
$ (79.11) 4 (55.68) $ (77.53) $ (76.07) $-(77.38)
Excess of increase in spe-cific prices ovar increase in general price level after i
adjustment to net recover-able amount 4 37,351 4 21,445 $ 32,491 4 31,956 $ 15,391 General Information Net assets at year end at recoverable amount
$ 66,779 $ 69,582 4 71,732 $ 74,265- $ 76,984 I
Gain from decline in purchasing power of net amounts owed
$ 9,556 $ 10,629 $ 10,506 $ 10,423 $ 24,354 Cash dividends per common share
$ 20.70 $ 12.89 $ 13.76.$ 14.49 $ 15.79 Average Consumer Price Index 322.2 311.1 298.4 289.1 272.4 1
O j 2 1114A/5429A-13 i
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Maine Yankee Atomic Power Company O
Form 10-K - 1985 Schedule V (1985)
Maine Yankee Atomic Power Company ELECTRIC PROPERTY AND NUCLEAR FUEL For The Year Ended December 31, 1985 (Dollars in Thousands)
Balance at Retire Balance Beginning Additions ments Transfers &
at End of Period at Cost or Sales Other Charges of Period Electric Property Organization 7
7 Miscellaneous Intangible Plant 510 510 Land and Land Rights 485 (7) 478 Structures and Improvements 63,907 2,036 (3) 65,940 Reactor Plant Equipment 129,285 5,922 (1,267) 133,940 Turbogenerator Units 70,608 16,097 (4,684) 82,021 O
ice er7 81 etric Equipment 16,578 415 16,993 Miscellaneous Power Plant Equip.
9,246 397 9,643 Substation Equip.
4,786 4,786 l
Miscellaneous Electric Property 74 74 Unfinished Construction 10,867 15,456 (24,860) 1.463 1
Total Electric Property
$M
$40.316 $( M ) $( M ) $M Nuclear Fuel Nuclear Fuel in Reactor
$125,031
$ 6,689
$131,720 Nuclear Fuel in Process 56,588 17,290 (46,195) 27,683 Nuclear Fuel -
Spent 126,404 39,628
.166,032 Nuclear Fuel -
Stock 4,529 (122) 4,407 Total Nuclear Fuel
$M
$M
$4
$M O 1011A/3262A-62
~
~
y Maine Yankee Atomic Power Company O
Form 10-K - 1985 Schedule V (1984)
Maine Yankee Atomic Power Company ELECTRIC PROPERTY AND NUCLEAR FUEL For The Year Ended December 31, 1984 (Dollars in Thousands)
Balance at Retire Balance Beginning Additions ments Transfers &
at End of Period at Cost or Sales Other Charges of Period Electric Property Organization 7
7 Miscellaneous Intangible Plant 510 510 Land and Land Rights 487 (2) 485 Structures and Improvements 63,249 658 63,907 Reactor Plant Equipment 116,954 12,364 (33) 129,285 Turbogenerator Units 66,869 3,739 70,608 g
Accessory Electric Equipment 15,684 894 16,578 Miscellaneous Power Plant Equip.
7,168 2,081 Subctation Equip.
4,786 (3) 9,246 4,786 Miscellaneous Electric Property 74 74 Unfinished Construction 14,316 16,571 (20,020) 10,867 Total Electric Property
$290.104
$36.305
$(g) $( M ) $M Nuclear Fuel Nuclear Fuel in Reactor
$113,691
$ 11,340
$125,031 Nuclear Fuel in Process 37,802 18,935 (149) 56,588 Nuclear Fuel -
Spent 95,365 31,039 126,404 Nuclear Fuel -
Stock 46,759 (42,230) 4,529 Total Nuclear Fuel
$293.617
$18.935
$312.552 O 1011A/3262A-63
{
=
er Maine Yankee Atomic Power Company O
Form 10-K - 1985 Schedule V (1983)
Maine Yankee Atomic Power Company ELECTRIC PROPERTY AND NUCLEAR FUEL For The Year Ended December 31, 1983 (Dollars in Thousands)
Balance at Retire Balance Beginning Additions ments Transfers &
at End of Period at Cost or Sales Other Charges of Period -
Electric Property Organization 7
7 Miscellaneous Intangible Plant 510 510 Land and Land Rights 499 (12) 487 Structures and Improvements 58,583 4,666 63,249 Reactor Plant Equipment 116,046 908 116,954 Turbogenerator Units 68,196 83 (1,410) 66,869 Accessory Electric Equipment 14,790 894 15,684 Miscellaneous Power Plant Equip.
6,321 847 7,168 Substation Equip.
4,786 4,786 l
Miscellaneous Electric Property 74 74 Unfinished.
1 Construction 12,614 9,088 (7,386) 14,316 l
Total Electric Property
$282.426
$16.474
$ (8.796) $@
Nuclear Fuel Nuclear Fuel in Reactor
$113,634 57
$113,691 Nuclear Fuel in Process 40,422 39,488 (42,108) 37,802 Nuclear Fuel -
Spent 95,365 95,365 Nuclear Fuel -
Stock 4,651 42,108 46,759 Total Nuclear Fuel
$M
$M
$293.617 O 1011A/3262A-64
4
,j %
Maine Yankee Atomic Power Company Form 10-K - 1985 Schedule VI 1
Maine Yankee Atomic Power Company ACCUMULATED PROVISION FOR DEPRECIATION AND AMORTIZATION OF ELECTRIC PLANT AND NUCLEAR FUEL For The Years Ended December 31, (Dollars in Thousands)
Balance Balance Beginning Charged Other at End of Period to Income
- Retirements Changes of Period 1985 Electric Property
$ 99.306
$ 8.379
$(5.954)
$g)
$1Q1JdQ Nuclear Fuel
$M
$M
$g
$M 1984 Electric Property
$ 89.037
$M (36)
$3)
$ 99.306 Nuclear Fuel
$161.94ft
$M
$M 1983 Electric Property
$ 79.305
$ 9.909
$g)
$ 89.037 Nuclear Fuel
$132.762
$29.184
$1&L1Mt
- Excludes amounts collected through depreciation rates for Decorrissioning and I
Permanent Disposal Cost. See Note 1 of Notes to Financial Statements for the Company's depreciation and fuel amortization policies.
10llA/3262A-65
s
.6*
s Maine Yankee Atomic Power Company O-Form 10-K - 1985 Schedule VIII Maine Yankee Atomic Power Company RESERVES EXCLUSIVE OF RESERVES FOR DEPRECIATION For the Years Ended December 31, (Dollars in Thousands)
Balance at Charged Charged Deductions Balance Beginning to to Other From at Close of Period Income Accounts Reserves of Period 1985 Decommissioning Recarve
$b,s16,
$1.218,
$M 1984 Decommissioning Reserve
$4 E
$L,$,16,
$g
$ 6.446 1983 Decommissioning Reserve
$L,l},D,
$M
$g
$ 4.220
. 1011A/3262A-66
3 O
O O
v.r Maine Yankee Atomic Power Company Form 10-K - 1985 Schedule IX SHORT-TERM BORROWINGS (Dollars in Thousands)
.4
- i Column C Weighted Column F Column A Column B Average Column D Column E Weighted Daily Category of Balance at Interest Maximum Amount Average Amount Average Short-Tern End of Rate Outstanding Outstanding Interest Rate Borrowings Year at End of Period During the Year During the Year During the Year Year Ended December 31, 1985 Sanks (1)
$ 6,825 620 9.70%
?
Year Ended December 31, 1984 Banks (1)
$18,500
$ 6,241 11.75%
Year Ended December 31, 1983 Banks (1)
$16,175 11.00%
$20,475 212,466 10.96%
g g..
Y
?E n g-
' =
GE (1) See Notes 4 and 7 of Notes to Financial Statements O$
8
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1 A
1011A/3262A-67
)
,