ML19347D275

Prepared Testimony of Hf Christie Re Request for General Rate Increase Proceeding.Current Financial Data Encl

ML19347D275
Person / Time
Site:	San Onofre
Issue date:	11/30/1980
From:	Christie H SOUTHERN CALIFORNIA EDISON CO.
To:
Shared Package
ML13302A498	List: ML13302A497 ML19347D254 ML19347D261 ML19347D264 ML19347D268 ML19347D271 ML19347D274 ML19347D275 ML19347D276 ML19347D279 ML19347D281 ML19347D282 ML19347D287 ML19347D289 ML19347D290 ML19347D293 ML19347D294 ML19347D295 ML19347D297 ML19347D299 ML19347D300
References
59351, NUDOCS 8103110713
Download: ML19347D275 (14)

Text

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Application No. 59351 l Exhibit No. /38 H. F. Christie kl

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SOUTHERN CALIFORNIA EDISON COMPANY t

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'! PREPAPID TESTIMONY OF H. F. CHRISTIE h  :

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. i Rosemead, California j Noverber 1980' j.

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SOUTHERN CALIFORNIA EDISON COMPANY Prepared Testimony of H. Fred Christle Application No. 59351 1 Q. Have you testified previously in this proceeding?

2 A. Yes, I have. I sponsored Exhibit No. I and pages HFC-1 through HFC-31 3 of Exhibit No. 4.

4 Q. What is the purpose of your testimony?

5 A. The purpose of my testimony is to:

6 1. Extend pertinent tables of Exhibit No. I to reflect 1979 7 recorded financing costs.

8 2. Revise the projected 1980, 1981, and 1982 cost of debt and 9 preferred stock.

10 Q. Which tables of Exhibit No. I have been expanded in Exhibit No. (HFC-1) 11  ?

12 A. Tables 1 through 7 and 2,4 have been expanded to include recorded data 13 for 1979 and 1980 (through September) where appropriate. These tables 14 are included in Exhibit No. (HFC-1) as Tables 1A through 7A and 15 24A.

16 Q. What is shown on Tables 1 A and 2A?

17 ' A. Tables 1A and 2A reflect recorded 1979 construction expenditures, 18 refundings, and financings. The 1980-1983 estimates of construction 19 expenditures and financings have not been modified.

20- Q. . Why haven't the financing r-ojections f or the 1980-1983 period been 21 modified?'

-22 A. The Company has an urgent need for the rate relief which will-be the

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I subject of the decision in this case. The Commission notice setting the 2 date for the additional hearings limited the scope of the additional 3 hearings, apparently so the Commission can reach such a decision before 4 year-end 1980 with new rates to become effective January 1, 1981.

5 Therefore even though the Company currently estimates 1981-1982 financing 6 requirements will be hiaher than shown in Tables 1A and 2A, the Company 7 is limiting the financial changes i,n the updated forecasts to those 8 involving senior capital cost factors resulting from higher Interest rates 9 and rates applicable to preferred issues without changing the size of 10 financings, the target capital structure, or the required return on common 11 equity.

12 Q. What is shown on Table 3A of Exhibit No. (HFC-1)  ?

13 A. Table 3 A shows the GNP Impilelt Price Deflator, the Consumer Price Index 14 (CPI),'and the Producer Price Index (PPI) for the 1969-1979 time period.

15 For the 1975-1979 period, the average annual trend rate of these price 16 change indicators ranged from 6.77% to 7.65%. This demonstrates a 17 persistent inflation rate of at least 7% per year over that period.

18 Q. What is your current projection of the GNP Implicit Price Deflator and 19 the CPI increases for 1980, 1981, and 19827 20 A. Based on the November 1980 forecast of the U.S. Economy prepared by Data 21 Resources, Inc., we project the GNP Impilcit Price Deflator to rise 22 approximately 9 5% in 1980, 10.2% in 1981 and 9.8% in 1982. We estimate 23 the CPI will increase 13 5% in 1980, and hopefully no more than an 24 additional 11.5% in 1981 and 10.0% in 1982. These indices indicate a high 25 basic inflation rate for the 1980-1982 period.

26 Q. What do Tables 4A, 5A, and 6A show?

27' A. . . Tables 4 A, 5A, and 6A set forth the . trends -in short-term money rates,

'28 utility long-term interest rates, and utility preferred stock yields HFC248.AB-01 I recorded through September 1980. The cost of funds peaked in March 1980, 2 declined until June and then commenced to increase again. We project 3 that our final 1980 bond financing scheduled for mid-November in the 4 amount of $150 million will cost at least 14.5% and the cost of 1981 and 5 1982 bond issues will average at least 14% and 12%, respectively.

6 Costs for preferred and preference issues for 1981 and 1982 7 are expected to be slightly less. These costs are projected to be at 8 least 12% in 1981 and 11% in 1982.

9 Q. What do Tables 7A and 24A show?

10 A. Table 7A shows the recorded 1979 Imbedded costs of debt and preferred 11 stock and current estimates of the imbedded costs of debt and preferred 12 stock for 1980, 1981, and 1982 on both an average year and year-end basis.

13 Unless the Company's cost factors are applied and an adeouate attrition 14 allowance is authorized, we believe year-end imbedded costs should be 15 used.

16 Table 24A shows the weighted cost of capital using the current 17 estimates of both the year-end and averagc year imbedded costs. Excluding

~ 18 any provision for attrition, an 11.30% rate of return is required in 1981.

19 This return reflects a 15% return on equity, it should be realized that i 20 an 11 30% rate of return will provide interest coverage of only 2.67 21 times.

l 22 Q. What impact would the higher estimated 1982 Imbedded cost of senior l 23 capital have on a step attrition allowance?

24- A. -Assuming that the required return on common equity remained at 15%, the 25 rate of return on rate base authorized for test year 1981 would have to 26 be-increased for 1982 to provide for. financial attrition.resulting from 27 -increases in imbedded costs. If a step attrition allowance were adopted

.28 .using year-end-cost factors, the_ authorized-rate of return on rate base HFC248.AB 01 j.. .

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I for 1982 would have to be at least 11.51%. It is estimated such a return 2 would only provide coverage of 2.6 times interest, if a step attrition 3 allowance were adopted using average cost factors, the authorized rate 4 of return on rate base for 1982 would have to be at least 11.40%. Such i

5 a return would only provide coverage of 2.64 times Interest, if such 6 coverage was calculated on an average year basis.

7 Q. Does this conclude your prepared testimony?

8 A. Yes, it does.

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Application No. 59351 Exhibit No. (HFC-1) /3'f [

j Witness: H. Fred Christie '

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4 SOUTHERN CALIFORNIA EDISON COMPANY t

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CURRENT FINANCIAL DATA i

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PUBLIC UTILITIES C0'MMISS10N OF THE' STATE '0F CALIFORNI A {

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Table 1A SCE FJNDS REQUIRED FOR CONSTRUCTION EXPENDITURES AND REFUNDING 5 Funds Required (millions)

Line Construction Millions Percent No. Year Refundings Expenditures Total Int ernal Ext e rna l Int ernal External (1) (2) (3) (4) (5) (6) (7) (5)

A. Recorded Period

1. 1974 $----- $320.7 $320.7 $140.2 $180.5 43.7% 56.3%

2. 1975 ----- 361.1 381.1 52.8 328.3 13.8 86.2

3. 1976 80.6 500.3 581.1 344.9 236.2 59.4 40.6

4. 1977 ----- 500.3 500.3 55.2 445.1 11.0 89.0

5. 1978 35.5 567.8 603.3 410.4 192.9 68.0 32.0

6. 1979 33.7 674.1 707.8 (37.6) 745.4 (5.3) 105.3

7. Total $150.0 $2,944.3 $3,094.3 $965.9 $2,128.4 ----- -----

8. Average 25.0 490.7 515.7 161.0 354.7 31. S '. 6 5. 2',

9. Percent 4.8% 95.2% 100.0% 31.2% 68.8% ----- -----

B. Forecast Period Without Rate Relief

10. 1980 $ 84.6 56 0.2 $754.S $ 85.9 $66S.9 11. 4 ', S S . 6',

11. 19S1 143.7 516.2 659.9 63.2 596.7 9.6 90.4

12. 1982 121.0 478.2 599.2 145.6 453.6 24.3 75.7

13. 1983 53.2 581.7 634.9 157.7 477.2 24.8 75.2

14. Total $402.5 $2,246.3 $2,648.8 $452.4 $2,196.4 ----- -----

15. Average 100.6 561.6 662.2 113.1 549.1 17. 5'. 8 2 . 5'.

16. Percent 15.2% 84 . 8', 100.0% 17.1% 82.9% ----- -----

C. Forecast Period With Rate Relief

17. 1980 $ 84.6 $670.2 $754.8 $ 85.9 $66S.9 11.4 'c S S . 6*.

IS. 19S1 143.7 516.2 659.9 263.8 396.1 40.0 60.0

19. 1982 121.0 478.; 599.2 257.4 34 1.8 43.0 57.0

20. 1983 53.2 581.7 6 34.9 412.5 ' 222.4 65.0 35.0

21. Total $402.5 $2,246.3 $2,648.8 $h019.6 $1,629.2 ----- -----

22. Average 100.6 561.6 662.2 254.9 407.3 39.9'. 60.1%

23. Percent 15.2% 84.8% 100.0% 38.5% 61.5% ----- -----

Sources: Annual Reports Plant Construction Budget and Ferecast, Second Quarter,1979 11-3-80

Table 2A SCE FINANCINGS (Millions)

Long-Tern ine Long-Te rm Preferred Common Short-Tern Total No. Year Debt Stock Stock Subtotal Investment Borrowings Change Financines (1) (2) (3) (4) (5) (6) (7) (6) (9)

A. Recorded Period 1, 1973 $ --- $ --- $ --- $ --- $ --- $ 92.5 $ --- $ ---

1974 222.5 50.0 67.2 339.7 66.7 ---

(159.2) 180.5 3

3. 1975 161.6 50.0 --- 211.6 --- 50.0 116.7 325.3

4. 1976 126.3 --- 123.9 250.2 --- 36.0 (14.0) 236.2

5. 1977 200.0 102.4 (a) 43,3(a) 345.7 --- 135.4 99.4 445.1 200.0 (14.5)(a) 203.3(a) 388.8 80.5 20.0 (195.9) 192.9

6. 1978

7. 1979 305.0 113.7 62.0 480.7 --- 204.2 264.7 74 5 .4

$1,215.4 $499.7 $2,016.7 $111.7 $2,125.4 Total $301.6 --- ---

8.

9. Average 202.6 50.3 83.3 336.1 --- --- IS.6 354.7

10. Percent 57.1% 14.2% 23.5% 94.8% --- --- 5.25 100.0'.

B. Forecast Period Without Rate Relief 11 19S0 $ 400.0 $231.0 $ 694.0 --- $179.1 $(25.1) $ 668.9 1951 300.0 $ 63.0 63.0((b) b) 220.8 583.8 --- 192.0 12.9 596.-

453.6

'3. 1952 300.0 4 5.1(b) 155.0 500.1 --- 145.5 (46.5)

14. 19S3 300.0 50.0 120.0 470.0 --- 152.7 7.2 47 .2

15. Total $1,300.0 $221.1 $726.8 $ ,7,24 7. 9 --- ---

$(51.5) 52.196.4

16. Icerage 325.0 55.3 181.7 562.0 --- ---

(12.9) 549.1

17. Percent 59.2% 10.0% 33.1% 102.3% --- ---

( 2. 3) 100.0".

Forecast Period With Rate Relief C.

IS. 1980 $ 400.0 $ 63.0(b) $231.0 $ 694.0 ---

$179.1 $(25.1) $ 665.9

19. 1981 300.0 63.0(b) 80.0 443.5 --- 132.5 (4 7. 4 ) 396.1

20. 1982 300.0 45.1(b) -85.3- 430.4 --- 43.9 (SS.6) 341.8

22. 1983 250.0 50.0 94.3 394.3 $128.0 ---

(171.9) 222.4

22. Total $1,250.0 $221.1 $491.1 31,962.2 --- --- $(333.0) $1,629.2

23. Average 312.5 55.3 122.8 490.6 - - - ---

(83. 3) 40 .3

24. Percent 76.7% 13.6% 30.1% 120.4% --- ---

(20.4)'. 100.0'.

(0)Cenvertible preference stock was converted to common stock; $19.6 million in 1977, and $14.5 million in 1978.

~b) Convertible preference stock is projected to be converted to common stock through 19S2; $12 million in 1979, 1980, and 1951; and $4.9 million in 19S2.

ces: Financial 6 Statistical Report, 1978 Financial Simulation, July, 1979

.1-3-80

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• Tabic 3A PRICE INDICES GNP 1mplicit Consumer Price Price Index Producer Line Deflator Percent United States Percent Price Index Percent No. Year (1969 = 100) Change (1969 = 100) Change (1969 = 100) Cl.ange (1) (2) (3) (4) (5) (6) (7)

1. 1969 100.00 -- 100.00 --

100.00 --

2. 1970 105.35 5.35% 105.92 5. 92'. 103.66 3. 66'.

3, 1971 110.72 5.10 110.47 4.30 106.95 3.17 i 4. 1972 115.31 4.15 114.12 3.30 111.83 4.56

5. 1973 122.00 5.80 121.22 6.22 126.48 13.10

6. 1974 133.79 9.66 134.52 10.97 150.33 1E.06

7. 1975 146.62 9.59 146.81 9.14 164.23 9.25

8. 1976 154.24 5.20 155.28 5.77 171.83 4.63

9. 1977 163.30 5.87 165.30 6.45 182.35 6.12

'10. 1978' 175.38 7.40 177.87(a) 7.60 196.53 7.78

11. 1979 190.80 8.79 195.27(a) 13.47 221.22 12.56 Average Annual Trend RLte(b)

12. 1970-1979 6.96% 7.32', 9.21%

13. 1970-1974 5.92 5.88 9.54

14. 1975-1979 6.77 7.65 7.57

'(a) CPI revised in 1978; hence not directly comparable to prior years.

(b) Exponential Curve Fit (y = nebx)

Sources: Col . - 2, lines 1-11 : Survey of Current Business Cols. 4 and 6, lines 1-11: Monthly Labor Review, Bureau of Labor Statistics

} } 80

Table 4A SHORT-TERM MONEY RATr,s(a)

Commercial Banker's Treasury Line Paper Acceptance Bills No. Year Prime (a) 3-months (b) 90 Day 90 Day (c)

(1) (2) (3) (4) (5)

1. 1970 7.91% 7.72% 7.31% 6. 39 '.

2. 1971 5.72 5.11 4.85 4.33

3. 1972 5.25 4.69 4.47 4.07

4. 1973 8.03 8.15 8.08 7.03

5. 1974 10.81 9.87 9.92 7.84

6. 1975 7.86 6.33 6.30 5.80

7. 1976 6.84 5.35 5.19 4.9S

8. 1977 6.83 5.60 5.59 5.27

9. 1978 9.06 7.99 8.11 7.19

10. 1979 12.67 10.98 11.04 10.07

11. Average 8.10'. 7 .18 *. 7.09% 6. 3 0'.

1979 Monthly

12. January 11.75% 10.32% 10.29'. 9.35%

13. February 11.75 10.01 10.01 9.32

14. March 11.75 9.96 9.94 9.48

15. April 11,75 9.87 9.90 9.46

16. May 11.75 9.9S 9.98 9.61

17. June 11.65 9.71 9.79 9.06

18. July 11.54 9.82 9.99 9.24

19. August 11.91 10.39 10.62 9.52

20. September 12.90 11.60 11.70 10.26

21. October 14.39 13.23 13.44 11.70

22. November 15.55 13.57 13.53 11.79

23. December 15.30 13.24 13.31 12.04 1980 Monthly 24 . . January 15.25% 13.04% 13.15% 12.00'.

25. February 15.63 13.78 14.01 12.86

26. March 18.31 16.81 17.10 15.20

27. April 19.77 15.78 15.63 13.20

28. May 16.57 9.49 9.60 8.58

29. June 12.63 8.27 8.31 7.07

30. July 11.48 8.41 8.58 8.06

31. August 11.12 9.57 9.85 9.13

32. September 12.23 10.97 11.13 10.21

. (a) Average.of daily effective rates.

(b) Prior to 11/79 the Federal Reserve reported 4-6 Month Commercial Paper which closely follows the 3-month rate.

(c) Average market yields.

Sources: Federal Reserve Bulletins Federal Reserve Statistical Release G-13.

7able 5A LONG TER4 BOND YIELDS U . S . Go v e rnr.e r.t Moody's Public Utilities (a) Long-7 err Line Bond Rating Difference Differen;(

No. Year Aa A Baa A-Aa Baa-A Yield From AA (1) (2) (3) (4) (5) (6) (7) (8)

1. 1970 8. 5 2'. 8.69% 9 .18 '. .17 .49 6.865 ( 1. 66 ) *.

2. 1971 8.00 8.16 8.63 .16 .47 6.12 (1.85)

3. 1972 7.60 7.72 8.17 .12 .45 6.01 (1.59)

4. 1973 7.72 7.84 8.17 .12 .33 7.12 (0.60)

5. 1974 9.04 9.50 9.84 .46 .34 8.05 (0.99)

6. 1975 9.44 10.09 10.96 .65 .87 8.19 (1.25)

7. 1976 8.92 9.29 9.82 .37 .53 7.86 (1.06)

8. 1977 8.43 8.61 9.06 .18 .45 7.67 (0.76)

9. 1978 9.10 9.29 9.62 .19 .33 8.48 (0.62)

10. 1979 10.22 10.49 10.96 .27 .47 9.32 (0.90)

Averages

11. 1970-1979 8.70% 8.97% 9.44', .27 .47 7.57% ( 1.13) ',

12. 1975-1379 9.22 9.55 10.08 .33 .53 8.30 (0.92) 1979 Mon!hly Yields

13. January 9. 70'. 9. 9 0'e 10.29', .20 .39 8.98% (0.72)$

14. February 9.74 9.84 10.27 .10 .43 9.03 (0.71)

15. March 9.89 10.04 10.53 .15 .49 9.08 (0.81)

16. April 9.92 10.10 10.56 .18 .46 9.12 (0.80)

17. May 10.19 10.30 10.70 .11 .40 9.21 (0.98)

18. June 9.95 10.14 10.56 .19 .42 8.91 (1.04)

19. July 9.72 9.98 10.48 .26 .50 8.92 (0.80)

20. August 9.75 10.14 10.50 .39 .36 8.97 (0.78)

21. September 9.94 10.36 10.78 .42 .42 9.21 (0.73)

22. October 10.85 11.40 11.89 .55 .49 9.91 (0.94) 23 November 11.57 11.89 12.48 .32 .59 10.37 (1.20)

24. December 11.47 11.79 12.51 .32 .72 10.18 (1.29) 1980 Monthly Yields

25. January 11.95% 12.27% 12.92'. .32 .65 10.65% (1.30)1

26. February 13.19 13.55 14.42 .36 .87 12.21 (0.98)

27. March 14.09 14.65 15.26 .56 .61 12.49 (1.60) 28.. April 13.49 13.87 14.35 .38 .48 11.42 (2.07)

29. May 11.99 12.53 12.93 .54 .40 10.44 (1.55)

30. June 11.73 12.21 12.63 48 .42 9.89 (1.84)

31. July 11.96 12.26 12.75 .30 .49 10.32 (1.64)

32. August 12.73 12.96 13.50 .23 .54 11.07 (1.66)

33. September 13.18 13.43 14.07 .25 .64 11.47 (1.71)

(a) Yields are based on prices- for the last Friday of each month. Series began 1975.

Sources: Moody's Bond Record Moody's Public Utility Manual

PREFERRED STOCK YIELDS Table BA Difference Line Moody's Ratinge (a) fror na No. Quart er as a bra __ a baa (1) (2) (3) (4) _ (5) (6) 1977

1. March 8.21% 8.75% 9.01% 0. 5 8 '. 0.80%

2. June 8.03 8.47 8.92 0.44 0.89

3. September 7.95 8.32 8.87 0.37 0.92

4. December 8.14 8.59 9.03 0.45 0.89

5. Average 8 .12'. 8.55% 8.93% 0. 4 3', 0. 81'.

1978

6. March 8. 35 '. F 79% 9. 34's 0. 4 4 '. 0.995

7. June 8.84 9.39 9.81 0.55 0 97

8. September 8.43 8.82 9.62 0.39 1.19

9. December 8.94 9.65 10.48 0.71 1.54

10. Average 8.59', 9 . 06'. 9.61' O.47% 1. 0 2'.

1979 - bbnthly January 9.615 10.42% 0 . 5 6', 1.37%

11. 9 . 05 *.

12. February 9.11 9.66 10.37 0.55 1.26

13. March 9.10 9.63 10.33 0.53 1.23

14. April 9.14 9.71 10.43 0.57 1.29

15. May 9.19 9.91 10.82 0.72 1.63

16. June 9.03 9.55 10.49 0.52 1.46

17. July 8.98 9.60 10.33 0.62 1.35

18. August 9.07 9.74 10.49 0.67 1,42

19. September 9.60 10 . 34 10.97 0.74 1.37

20. October 10.62 11.38 11.94 0.76 1.32

21. November 10.66 11.23 12.18 0.57 1.52

22. . December -10.86 11.49 12.75 0.63 1.89

23. Average 9.53% 10.15% 10.96*. 0.62% 1.435 1980 - Monthly

24. January 10.96% 11.79% 12.74% 0.83% 1. 78'.

-25. February 11.62 12.92 14.08 1.30 2.46

26. March 13.09 14.74 15.22 1.65 2.13

27. April 11,67 12.22 13.13 0.55 1.46

28. .May 10.80 .11.69 12.29 0.89 1.49

29. June 10.59 10'.97 12.05 0.38 1.46

30. July 10.98 11.49 12.32 0.51 1.34

31. August 11.47 12.15 13.05 0.68 1.58

32. September 12.02 12.92 13.76 0.90 1.74

33. Average (b) 11.47 12.32 13.18 0.85 1.72

.(a) Yields are based on prices for the last Friday of each month. Series began 1975.

(b) Year-end, September, 1980.

Sources: Moody's Bond Record

Tchic 7A L

SCE IM8EDPED COST 01:

DE8T AND PREIT.RRED STDCK Long-Term Debt Preferred and Preference Stock I.ine Proceeds Annual Cost liffective Rate P roceeds Annual Dividends I.f fect ive Rate No. Year (000) '(000) Yea r-l'nd Averare, (000) (000) Year-End Average (1) (2) (3) (4) (5) (6) (?) (H) 19)

A. Recorded Period

1. 1975 $2,088,218 $128,030 6.13*. 6 . 0 2*. $602,106 $41,751 6.93% 6.82%

2. .1976 2,130,512 136,899 6.43 6.28 602,106 41,751 6.93 6.93

3. 1977 2,328,243 152,795 6.56 h.50 704,431 49,985 7.10 7.02

4. 1978 2,490,007 171,067 6.87 6.72 690,257 49,230 7.13 7.12

5. 1979 2,756,831 204,154 7.41 7.14 805,0f>2 59,579 7.40 7.27

8. Forecast Period

6. 1980 $3,066,241 $258,515 8.43% 7. 9 2". $867,t>75 $67,955 7.83% 7.62%

7. 1981 3,222,453 289,655 8.99 8.71 930,288 76,331 8.21 8.02

8. 1982 3,399,430 320,032 9.41 9.20 975,062 81,57h 8.37 8.29 11-3-80

Table 24A

• WETCIITED AVERAGE C04T OF CAPITAL; Year-End After Tax Average Year After Tax Line Capital Cost Weighted Interest Cost Weighted Interest No. Ratio Factor Cost Coverage Factor Cost Cove rage _

(2) (3) (4) (5) (6) (7) (H)

A. Projected Rate of Retum with 15% Return on Common Equity Test Year 1980

1. l.ond-term Debt 47.00% 8. 4 3t, 3.96*. 7.924, 3.72%

2. Preferred Stock 13.00 7.83 1.02 7.62 .99

3. Senior Capital 60.00*. 8.30 4.98% 10.981. 7.85 4.71% 10.71%

4. Common Equity 40.00 15.00 6.00 43.96 15.00 6.00 43.72  ;

5. Total Equity 100.00*. 10.98*.

2.77x 10.71*.

2.HMx B. Test Year 1981

6. Long-term Debt 47.00% 8.99*6 4 . 2 3*. 8.714. 4.09%

7. Preferred Stock 13.00 8.21 1.07 8.02 1.04

8. Senior Capital 60. 00T, 8.83 5. 30*. 11.30% 8.55 5.1 34, 11.13%

9. Common Equity 40.00 15.00 6.00 44.23 15.00 6.00 44.09

10. Total Equity 100.00 11.30*. 2.67x 11.13** 2.72x C. Test Year 1982

11. Iong-term Debt 4 7. 00t, 9.41% 4 . 4 2 *. 9.20% 4.32%

13. Preferred Stock 13.00 8.37 1.09 8.29 1.08 14 Senior Capital 60.00*. 9.18 5. 51 ". 11.51t, 9.00 5 . 4 0*, 11.405.

. 15. Common Equity 40.00 15.00 6.00 44.42 15.00 6.00 44.32

16. Total Equity 100.00*. 11.51*. 2.60x 11.40*. 2.0tx 11-3-80

--