NRC-06-0078, Price-Anderson Act Guarantee of Payment of Deferred Premiums

Price-Anderson Act Guarantee of Payment of Deferred Premiums

ML063470627
Person / Time
Site:	Fermi
Issue date:	11/29/2006
From:	Gaston R Detroit Edison
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
NRC-06-0078
Download: ML063470627 (3)

Text

Fermi 2 6400 North Dixie Hwy., Newport, M1 48166 Detroit Edison 10 CFR 140.21 November 29, 2006 NRC-06-0078 Director, Office of Nuclear Material Safety and Safeguards U. S. Nuclear Regulatory Commission Attn: Document Control Desk Washington D C 20555-0001

Reference:

Fermi 2 NRC Docket No. 50-341 NRC Operating License No. NPF-43

Subject:

Price-Anderson Act Guarantee of Payment of Deferred Premiums Enclosed please find Consolidated Statements of Cash Flows as of December 31, 2005 (10K; AUDITED) and September 30, 2006 (10Q; UNAUDITED). These statements have been prepared in accordance with Generally Accepted Accounting Principals (GAAP) and meet standards as set forth in Regulatory Guide 9.4 and the Secondary Financial Protection section of the amended Price-Anderson Act.

Should you have any questions or require additional information, please contact me at (734) 586-5197.

Sincle Ronald W. Gaston Manager - Nuclear Licensing Enclosures cc: Ira P. Dinitz D. H. Jaffe C. A. Lipa NRC Resident Office Regional Administrator, Region Ill 99 A MTE Energy Company

e 10vk Page 27 of 76 Table of Contents

.THE DETROIT EDISON COMPANY CONSOLIDATED STATEMENT OF CASH FLOWS Year Ended December 31 2005 2004 2003 (in Millions)

Operating Activities Net Income $ 274 $ 150 $ 246 Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization 640 523 473 Deferred income taxes 40 142 32 Loss (gain) on sale of assets (26 i) (1) 21 Cumulative effect of accounting change 3 6 Changes in assets and liabilities, exclusive of changes shown separately (Note 1) 98 376 (13)

Net cash from operating activities 1,029 1,190 765 Investing Activities Plant and equipment expenditures (722 ) (702) (580)

Proceeds from sale of assets, net 30 1 2 Restricted cash for debt redemptions (9) 6 49 Notes receivable from affiliate 85 (78) 50 Proceeds from sale of nuclear decommissioning trust fund assets 201 254 199 Investment in nuclear decommissioning trust funds (235 (287) (231)

Other investments (71 (94)

Net cash used for investing activities (721 (605)

Financing Activities Issuance of long-term debt 857 266 49 Redemption of long-term debt (997) (206) (504)

Short-term borrowings, net 163 (100) 100 Capital contribution by parent company 470 Dividends on common stock (305) (303) (295)

Other (10)

Net cash used for financing activities (288) I (351) (190)

Net Increase (Decrease) in Cash and Cash Equivalents 20 (30)

Cash and Cash Equivalents at Beginning of the Period 6 6 36 Cash and Cash Equivalents at End of the Period $ 26 $ 6 $ 6 See Notes to Consolidated Financial Statements 21 http://www.sec.gov/Archives/edgar/data/28385/000095012406001040/k02349e 1Ovk.htm 11/27/2006

el~vq Page 13 of 29 Table of Contents THE DETROIT EDISON COMPANY CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)

Nine Months Ended September 30 2006 2005 (in Millions)

Operating Activities Net Income $ 254 $212 Adjustments to reconcile net income to net cash from operating activities:

Depreciation and amortization 646 484 Deferred income taxes 31 50 Gain on sale of assets, net (1) (26)

Changes in assets and liabilities, exclusive of changes shown separately (Note 1) (46)

Net cash from operating activities 678 674 Investing Activities Plant and equipment expenditures (735) (479)

Proceeds from sale of other assets, net 22 30 Restricted cash for debt redemptions 43 46 Notes receivable from affiliate 85 Proceeds from sale of nuclear decommissioning trust funds 136 159 Investment in nuclear decommissioning trust funds (163) (188)

Other investments (46)

Net cash used for investing activities (393)

Financing Activities Issuance of long-ternm debt 247 612 Redemption of long-termi debt (123) (795)

(16) 141 Capital contribution by parent company 150

• Dividends on comimon stock (229) (229)

Other (6) (4)

Net cash from (used for) financing activities 23 (275)

.(8) 6 Net Increase (Decrease) in Cash and Cash Equivalents Cash and Cash Equivalents at Beginning of the Period 26 6 Cash and Cash Equivalents. at End of the Period S 18 $ 12 See Notes to Consolidated Financial Statements (Unaudited) 10 http://www.sec.gov/Archives/edgar/data/28385/000095012406006887/kI 0028el1Ovq.htn 1/720 11/27/2006