ML20076M955: Difference between revisions
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| number = ML20076M955 | | number = ML20076M955 | ||
| issue date = 12/31/1990 | | issue date = 12/31/1990 | ||
| title = Annual Financial Rept for 1990 | | title = Annual Financial Rept for 1990 | ||
| author name = Schnell D | | author name = Schnell D | ||
| author affiliation = UNION ELECTRIC CO. | | author affiliation = UNION ELECTRIC CO. | ||
Latest revision as of 07:28, 20 May 2020
| ML20076M955 | |
| Person / Time | |
|---|---|
| Site: | Callaway  |
| Issue date: | 12/31/1990 |
| From: | Schnell D UNION ELECTRIC CO. |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| ULNRC-2382, NUDOCS 9103260229 | |
| Download: ML20076M955 (38) | |
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. $LECTRIC ?C'l* '"""""
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- March 20, 1991 *
'U.S.-Nuclear Regulatory Commission Attn:, Document Control Desk.
Mail Station F1-137 ;
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-Washington, D.C. 20E55 ULNRC- 2382 .
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Gentlemen //-
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gl. CALLAWAY PLANT 1 . DOCKET NUMBER 50-483-ANNUAL FINANCIAL REPORT 1
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[' Transmitted herewith are twenty-five (25) l copies of the Union Electric Company 1990 Annual Report.
This information is submitted in accordance with
.y, : ,. 10CFR50.71(b).
.Very truly yours, l
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.I!J F Donald F. Schncil WEK/dls
! !- Enclosures I H- ,
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PDR- ADOCK 05000483. q b1 if ME m
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cc i - T. A. Baxter, Esq.
Shaw, Pittman, Potts & Trowbridge 2300 N. Street, N.W. ;
Washington, D.C. 20037 Dr. J. O, Cermak CFA, Inc.
4 Professional Drive (Suite 110)
Gaithersburg, MD 20879 R. C. Knop Chief, Reactor Project 3 ranch 1 U.S. Nuclear Regulatory Commi ssion Region III 799 Roosevelt Road t Glen Ellyn, _ Illinois 60137 Bruce Bartl ett ~
Callaway Resident Of fice U.S,_ Nuclear Regulatory Commission P.RH1 Steedman, Missouri 65077 M. D. Lynch (2)
Office of Nuclear Reactor Regulation 7 U.S.. Nuclear-Regulatory Commission 1= White Flint, North, Mail Stop 13E21 11555 Rockville Pike Rockville, MD 20852 Manaaer, Electric Department j Missouri Public Service Commission N~ P.O. BoF 360 Jefferson-City, MO 65102
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je Statement of Policy
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We are a uusiness enterpose - dependent for success on the j.
high quality and fair pace of our service; on the skill, courtesy, and ll loyalty of our employees; on the confidence of our investors; and 1' on the abihty of our management to forecast and provide for the ;
energy requirements of cur area. 9 in the conduct of our business, we will render service of the ${r
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highest quality to our customers - promptly, courteously, and :.J y
efficiently - at the lowest prices consistent with paying fair wages ' g and affording job satisfaction and secunty to our employees; pro- .j{
viding modern facilities for our customers' expanding needs for energy service; and paying a fair return to our investors who have ,
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provided the funds to make such service possible.
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. g:, pgg,nsw t w As a private enterprise entrusted with an essential public service, jHyp D/,Sj3pg we recognize our civic responsibihty in the communities we serve. }
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H We shall strive to advance the growth and welfare of these- ;
N[NEggg* 5"E communities and shall participate in civic activities which fulfill p
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8 Co#errun. W v >>nt W O Kanic ,
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- D J hednett > c Mmre a. Contents Annual Meeting --j1 H Hett. R1 Moefk.v. s R. oavis, 1 I
.W.W. Puffern M Olme, , (
- D J. Jonnsort R C. Guenroer. 2 Letter to Stockholders The Annual Meeting of -3 l
. s. newsers o R.. erane, 5 Excellence in Service Stockholders will convene at /y
.. Bottom: N vapes, R. L kng. : 7 o a mweiey.s sauencrc 16 Responsibility for 10 a.m. Tuesday. April 23.1991. o e E. unun. w s.vort. . l 1
u Hamm M A Burstadt . Financial Statement < at Powell Symphony Hall, ;
- 1 L Tauey, K. o imirPt M J. Neafort
= R M uince o L sotwrt- 17 Financial Review 718 North Grand Boulevard j? ,:
M Heuman. c. J. stenrm .
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-x J. P f.awer. A Rogers at. R. s Ju 36 investorinformation St. Louis. Missourt
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i s scott o o cses 37 Directors and Officers l}t.
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Highlights Annual Change
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10 Year
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, k..~.. Year Ended Current Rate of
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14 1 i.... .i. .; December 31,1990 Year Growth e, . .. .c. '
i' Earnings per Average Common Share $2.74 5.UL 2.7%
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. Dividends per Common Share $2.10 4.0 3.6
(. . . f. % J .L...J',.,"... - c Common Stock IYice - Year End 829 % 3.9 10.6
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. c Book Value per Common Share $ 19,79 3.4 2.3
$7,512,246,000
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. .: , , ,. l L . ._ .. :1 Property and Plant kros9 2.8 6.4
- g. . . . . .' Total O 'ating Revenues $2,023,017,000 .6 6.5 7 . -
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Total Kilowat141our Sales 30,445,000,000 1.0 2.1 Residential Kilowatt 4 tour Sales 9,810,000,000 .9 1.5
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7.;' Commercial Kilowatt 4 tour Sales 10,274,000,000 1.3 4.0 g ; .. ;
. < - ., Industrial Kilowatt 4Iour Sales - 8,708,000,000 1.2 1.3
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..' 1990 was another good year for Union Electnc. Again, we increased our divi-dend. And, again, earnings per common share increased without an overall
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. . . Financial Resu G 1990 earnings per common share ir. ased to $2.74. a 5 percent gain over last
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year's $2.6i earnings.
- . . ~ - ?s . Who the 1990 summer was warmer than last year, it was offset by abnormally mild temperatures dunng the first and final quarters of the year. Kilowatt hour
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. ll .j sales increa>ed I percent with residential sales up .9 percent. commeraal sales up
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1.3 percent and industrial sales up I .2 percent.
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% 1 ,- - .k Peak electric dermod for the summer of 1990 was 7.47 million kilowatts on July 9, up 1,7 percent from the previous record of 7.34 nu! hon kilowatts set in 1988.
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- cent over 1989. Operating expenses were $1.6 bilhon. a relatively modest nse of 1.4 percent. compared to the year's 5 4 percent average increase in the consumer l
- price index - an indication that our cost containment efforts are working,
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_, , .. . 4' 7 ; Results for the year led to an increase in our common stock dividend - from $ ?.06 AO ' . . - ' to $2.16 per year. This is the fifth dividend increase in the last six years, and 1990 marked the 84th consecutive year the Company has paid a cash dividend.
- Acid Rain Legislation l.
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. - 1.ast year in this letter, I expressed our senous concern about pending acid rain leg-i, . ,I islation Over the years that the issue was debated, we argued for a more flexibic.
, } Cost effective solution.
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. . .j environmental benefits, but at considerabty less cost than earker proposals.
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,f- in short. While final rule-making by the Environmental Protection Agency still is not
. ' . .g complete. We anticipate that this legislation will not cause an increase in our electnc rates. at least for the next several years. While comphance will require
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i Rate Design Case i We ah resolved our Missouri rate design case, holding residential revenues at their present level, but reducing rates for commercial and industrial customers by
! 32 and 4.5 percent, respectively The settlement includes an agreement to keep rates at these new levels to at least 1993. turnng major unforeseeable events. This wiH lower our annual pre-tax revenues by an estimated 530 million. but it will also ,
l improve our competitive position. .
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,e High Marks for Callaway h I l l'm pleased to report that our Callaway nuclear plant continues to receive top <4 l marks for efficiency and safety. Last year, excluding its scheduled refueling time i mE nelius the plant produced 94 percent of the maximum kilowatt hours possible. In April, the U.S. Nuclear Regulatory Conimission (NRC) gave Callaway top ratings in all seven categories of its Systematic Assessment of Ucensee Performance in November. the plant completed its scheduled refueling in only 60 days. # % !alf the average time required for units of sts kind An1 this past January, the NC rec-l ognized Callaway as one of the country's three safest nuclear plants. i New Director I also am pleased to report that stockholders elected Thomas H Jacobsen a new director at the annual meeting last Apol. Mr. Jacoty,en is Chairman, President. and Chief Executive Officer of Mercantile Bancorporation Inc., a 57.6 bilton regional 4 banking organization that owns banks in Missouri and lifinois.
Union Electric is a service company. , unique responsibilities to each and all our l
custamers. As a service business. we understand that our jobs are never finished.
Because we always can - and must - improve the quahty of our service and its Cost i
This report tells how the 6.950 men and women of Union Electnc are working to
, improve our service through technology, good management, and simple i human canng. '
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William E. Cornelius February 4.199 l -
p Chairman and Chief Executive Officer St Louis. Missouri [3]
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doesn't apply to Union Electric. For example. most people regard
,.,'.. .~ , y 30-minute pizza dekvery or overnight document service as excet
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. , M eralty on demand, in the time it takes to thck a switch.
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. . , a ~~ ; in 1990, our average customer's service was availebte 99.98 per-
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- . Not all U.S. v.ihty wstomers enjoy such dependabikty. Some utth-M-
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?d ties have been forced to interrupt customers' power temporarity
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. during peak demand penods to av0id even more sencas prob-tems [ Rotating brownouts' are what these events are caHed.)
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lj Obviously, even brief outages cause problems for customers.
.' ,_ ~? Short term, they cause economic and personal disruption Longer
. .. ,- . . . w. .. ,; ? { term. continuing service problems can discourage economic
'+3 growth In fact, the more a society advances, the more important
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- .] g.t dependable electnc senace becomes to everyone's welbaeing.
Planned Redlability
.v - a 3 o - l- j Rehabihty doesn'tjust happen, though. It has to be planned and
. n. L. ,.-q built into a system and then scrupulously maintained One way p 7; - - ; . . ; l f.f,g - t. E. helps ensure dependabihty is through its diverse power
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sources. Unkke many utihty companies, we have the advantage
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, . . N Another example of the way we design rehabikty into our organe zation is how we've configured the system that allows U E. to
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I share power with other utikties if any part of our system suffered
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S- severe damage, we could - instantaneousty - get power from o
, . . utihties hundreds of miles away. We can receive power from utile ties in every direction, over dozens of knes. unkke compantes less
- .. m j centrally located. Designing and planning fo- dependabikty is I .
.E extremely important because energy is infrastructure's gua. sup
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. . porting all other elements from water systems to communications and emergency fachties.
Still. tne fact is, many events can't be controlled Uruon Electnc J' can't stop car accidents that knock down poles. And we can't 3
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gences with an organization that responds rapidly.
New Monitoring System
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In 1991, we'll significantly improve, not only our ability to respond, but. also our anikty to dehver service in the most cost.
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~l~. ; effective way. Improvement will come from a state of theut.
computer based monitoring system that oversees all critical ele-
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- .. ments of our powe5 dekvery system. We'll get information about any 1
h problems immediately and, in many cases, get alternatives about the different ways we can restore power. So, in many cases, ser-
. vice won't be interrupted or, at most. interruptions will be minima!
Another service enhancement now in development is our
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- - ~ . r; milhon customers. It means we can focus on specific problems, 4 ,. i l 'l p ' ^2
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quickly identify developing patterns, and fix problems. once and
- . . .- - for all. This will mean better service. It also will mean that we
. . y;y can apply our resources more efficiently than ever before.
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We're dedicated to improving our level of service constantly to
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'4 1 Treating Customers the Way They Want to be Treated
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J... , .i Dependability is ony one measure of service quality. Another is the A
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7- We don't assume we know what customers want in terms of ser-vice quality. We ask them. Last year, an independent research
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firm surveyect 3.000 Union Electnc customers We were pleased
' 4 f.? that eight of ten customers who answered the survey last year
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Stacey Jones Jesse Talley Jane Davis
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.. 7 Now, however, cost-effective technology will allow us to be more responsive than ever before. By 1992, our trouble call system will 9
I be integrated with other key systems Among other efficiencies. this means that a computer will list trouble reports in order of the nurrt ber of customers affected by any problem, and help speed up *
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repairs And, when a customer calls in with a service problem. our
". service rep <esentative will be able to key in the report to te8! him or
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We recognize that courtesy - a voice with a smile - is important. 1...*.
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But we also recognize that our customers expect more than that, e ' i J - t They expect a cornmitment - on the spot - from the first person 4: .
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', Civic Responsibilities - Part of Good Citizenship
[ and Good Business
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Our statement of corporate pohcy includes these words on corpo-j
.'. rate citizenship: *As a povate enterpose entrusted with an esser >
, '. j tial public service, we recognize our civic responsibility in the com-munities we serve. We shall strive to advance the growth and 1
~ gj welfare of these communities and shall participate in civic activities j which fulfill that goaLfor we beheve this is both good citizenship
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. ' .:: l i Backing up these words, we helped hterally thousands of individu-als through hundreds of nonprofit organizations in 1990.
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Denise Deloney Richard Kramer
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t. Our CusToutR AssisTANct PROGRAM serves customers wnose
-) financal stabihty is threatened by unexpected cnses last year this
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. program helped an estimated 5.800 households, often for a
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penod of months, with services that included food housing, med-
... , 3 ital care, and employment. Soaal service professionals provide
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assistance - at no charge to the customer - through an agre('
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ment with Union Electric.
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GArtxttPER trains Union Electric people to spot danger signals for
. , 1 .. ' ~ elderly customers.' When our people observe an older customer
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who they beheve, may be in trouble of some sort, they report it
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to a Division of Aging hothne. Professional social workers then j
.a follow up.
, f Energy 4 elated programs helped an estimated 9,000 households in 1990. The programs include DOLLAR MORE. WhiCh serves cus.
,-: , .- tomers who need temporary financial help to pay energy bills, r
'. , . . .- The Company, with our customers and our employees,
- : .C together fund Dollar More. WcArHERLIATION Kris help customers g
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age 62 or older make : heir homes more comfortable and energy g ,.
. . , , 7; efficient. Free kits are donated by U.E. and installed by volunteers.
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ENERGY AfD GRANTS go to nonprofit organizations for energy con-
', ; servation projects that serve their constituencies-a -
3 What these programs reflect. of course, is the fact that many cus-E , fi
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? j. ..tomers have special. energy-related needs We bekeve we best
,' meet our business objectrves by helping serve these special needs.
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with disabikties and health problems, For exarppie. bhnd customers
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Can receive biIs in braille, and we communicate with hearing-i
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.- have identified customers with lifeiupport systems in their
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' ~- homes, so if a service problem occurs. we can endeavor to pro-(~ - 1 [' .
tect these psople's health Employee Voluntarism U- - M As proud as we are of these and other corporate programs, we 1 are prouder still of the traditior* .;f voluntansm by Union Electric A
.j people, active and retired Throughout the communities we d
serve, U E. men and women represent a valuable resource of skills
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profit organization engaged in a special project can apply for a U.E. grant. An employee committee evaluates their fellow
. . , .' employees' requests and allocates grant money. This program
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3 gram. which supports nonprofit groups in our service area with 4
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- m. g cash and/or surplus equipment and materials. In 1990, these two j . ,,
; chantable programs benefitted more than 985 groups in the conf
! munities we serve with grants of cash and equipment totaling
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more than $2A milhon,
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- - .. I Unique Responsibility and Accountability q
In summary, Union Electric's service role is not. and can never be. a one dimensional. The combination of certain qualities - our
- ' - - importance to the economic and personal well-being of our cup 3 f ,
; tomers and our personal and corporate values - gives us unique 1
..J responsibility and accountability in the communities we serve.
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( C:sponsibility for Fincnci:1 St:tNn nts The management of Union Electric Company is responsible for the information and representations contained in the financial statements and in other secuons of this Annual Report. The financial statements have been prepared in conformity with generally accepted accounting principles. Other information included in this report is consistent where applicable, with the financial statements. The Company maintains a system of internal accounting controls designed to provide reasonable assurance as to the integnty of the finanaal records and the protection of assets. Quahfied personnel are selected and an organaation structure is maintained that provides for appropriate functional responsib6hty. Wntten pohcies and procedures have been developed and are revised as necessary The Company maintains and supports an extensrve program of internal audits with appropriate management follow up. The Board of Directors. through its Auditing Committee comprised of outside directors, is responsible for ensunng that both management and the independent accountants fulfill their respective responsibihties relative to the finanaal statements. Moreover, the independent accountants have full and free access to 1 meet with the Audaing Committee, with or without management present, to discuss auditing or financial reporting matters. Report of Independent Accountants One Boatmen's Plaza - Telephone 314-425 0500 St touis.MO 63101 PriceIThierhouse & To the Stockholders and Board of Directors February 4.199 i of Union Electnc Company . In our opinion, the accompanying tulance sheet and the related statements of income, long-term debt. preferred stock retained earnings, other paid-in capital, and cash flows present fairly, in all m&erial respects, the financial posnion of Union Electric Company at December 31,1990 and 1989, and the results of its operations and its cash flows for each of the three years in the penod ended December 31,1990. in conformity with generalty accepted accounting panoples. These financial statements are the responsibihty of the Company's management; our responsibdity is to express an opinsor. on these financial statements l based on our audits. We conducted our audits of these statements in accordance with generally
' accepted auditing standards which require that we plan and perform the audit to obtain reasonable assurance about whether the finanaal statements are free of matenal misstatement. An audit includes l
i exam:ning. on a test basis. evidence supporting the amounts and disclosures in the financial statements. , assessing the accounting principles used and significant estimates made by management, and evaluating the overall financial statement presentation We beheve that our audits provide a reasonable basis for the opinion expressed above. l b4 4 l
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. , - - , ' ,. , s g cStatement Cf: Inc m3 Union Electric Company
-, ? priovinO Dotws Enept stwe. s and IW hw Amoumi . c , N- {, ' Year 1990- dear 19l89_ Year,1988 ;
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,o qs Opefating' Rivenues (*): _ _
- [ , Electrie
.s $ 1556,1?1 = S1,929,884 _ St,938.296 , ;
p' - Gas : P2,310 76,840 ~87,263 , o =~ s "Other- .- - 3,530 ' 3,582 3,548 ' -v 1; : Total operating revenues 2,023,017 2,010,300 2,029,107 p .' .
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Operating 2xpenses:-
~ -
, o. . Operations ~ . M ' Fuel and purchased power . 402,453: 403,840- '422,297
?Other ' 367,365 354,215' 335,073: :
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5.. ' 769,818 / 758,055 757,370 i I - 4 Mahitenance -
' Depreciation and nuclear elecommissioning 176,369:
200,475-156,220-195,908 162,977 195,684- , v , J Amortization of phase in pla.7s deferred costs 32,461 34,397- 139,703 lincome taxes ' , 192,206 = 203,441 - 194,211-O' - -
~ Other taxes (*)1 ' 194,148 < 195,817 . 195,008 ' !
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; Total operating expenses - 1,565,477 l '1,543,838- -1,544,953 ;
a . 4 u i; . Operating Income ' 457,540- _'466,468 484,154 i s - . _. , 7 - Other income and Deductions: - * ' ~ ,, s b . Callaway Unit No. 2 costs disallowed s -- :(50,351)- .-
.e inecme tax benefits related to '
4 , Callaway Unit No. 2 costs disallowed - 20,155 - . 1 '
- Allowance for equity funds used during construction .2,188 2,656 2,002
+
' Miscellaneous, net ~ 10,118 7,996 (8,240);
s-
; , - Total'other income and deductions, net 12,306: - (19,544) - -(6,238)f ,
ilneome Hefore Interest Chargss- - 469,846. 446,924 - 477,916' ' !ly . , i, , - d Interest Chargesi . < a.
,s In'terest - .
187,584- 176,571 199,241' (11,957)- Allowance for borrowed funds used during construction ; .(15,252) (12,883) f s Net interest charges 175,627" 161,319 186,358 < > Net income ~ - 294,219 285,605 . , 291,558
- e, +
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- - ; Preferred Stock Dhidends' +
s 14,693' 19,134 ~ 30,425
~
2Eairnings ob Common Stock - S 279,526 $ 1266,471 - S 261,133 1 'i: M - . (*) includes license and franchise taxes of $98,200,000, S95W6,000, and $95,fo8,000
- , L for the years 1990,1989, and 1988, restwetively.
4 '
. ) Earnings per Share of Common Stock (bamion average sharesoutstanding) $2,74 S2.61 S2.56
^ DMdends' per Share of Common Stock S2.10 S2.02 St.94 Average Nthmber of Common Shares Outstanding 102,123,834- 1 02,123,834 102,123,834 L . ,1 See Notes to Financial Statements on pages 25 through 29.
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Uni:n Electric Company 1 j
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q =- - c.k ' , . j s - 1 M7 Assets ' ' ,
, December 31,1990 -- - December 31,1989 : :
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Pbperty and Plant, at original cost:- - .w f' 1 - Electric .
$7,238,325 $7,013.2171 1
, L Gas " 122,632: . -113,190 :
Other : 18,268 - 14,755-- -
#s s. -_. . - .- : _
= - , - - -
.' Q . 7,379,225 . 7,141,162' i ,!
;J- 11rss accumulated depreciation and amortization 2,391,514 ; 2,192,221_.
" -4,987.711 4,948,941 J s
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(;e Conttruction work in progress: , l
< Nuclear fuelin process 61,636 - 115.333 -
- ' Other 71,385- -
53,468- . ;. [o,[ Total / property and plant. net 5,120,732i 5,117,74i ,
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$# a~ , lCallaway rate phase-in plans ,
66,976 - 99,200 - -
, >s 3 i Unamortize'd debt expense . .
23,555 23,623 :
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Nuclear decommissioning trust fund - .22.594 t - 17,816 i , 4
, 1 Other-17,636 20,943 I' -v ! '
iTotal deferred chcrges and other assets ,130,761 > 161,5821 ! r 3 . 1 _ < < .r ? ; q (. * = x _
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,' ? Cash and special deposits; .J3,525 - 3,4S0 .
[ j o Accounts receivable - trade (less allowance ;l
> for doulitful accounts of $5,484 and $5,713,. ,
i = respective dates) ' + 161,516 ~ 150,088 -} Y <
~ Unbilled revenuef ' 95,407 4 113,193
,s : .o : + Other accounts and notes receivable 15,089' '23,912 < T *~~'
.d ; Materials and supplies, at average cost'- )
_i Fossilfuel ' L 72,165
~
- a. - 86,897 .
.. ' Construction and mentenance :
- 90,029 , 89,782- j j , : Other , 13,117; 13,6161 ~L
- Total current assets ' '
450,848 480,998 - a
- Total ^ Assets -
85,702,341- 85f60,322 , f "See Notes to Fmancial Statements on pages 25 through 29, r
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December 31,1990 Decembsr 31,1989 a a % -
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!c; : M_ . . -Y pa Capitalization: __
'* , Common stock, S5 par value, authorized 150,000,000 shares - '
s ' outstanding 102,123,834 shares (excluding 42,990 shares
~
? . at par value in treasury) L $ 510,619 $ 510,619. t Other paid-in capital, principally premium on common stock ' 7 . (see accompanying statement) , 718,473- 716,957i ( Retained earnings (see accompanying statement) 792,207 _ 726.925 LTotal common stockholders' equity '2,021,299 1,954,481' ' g Preference stock, S1 par value, authorized 7,500,000 shares -
- ' none outstanding . .
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, Preferred stock not subject to mandatory redemption
- (see accompanying statement) 218,004 227,582
!" - Preferred sto'c k subject to mandatory redemption 780-f . (see accompany,ing statement) 806 _ 4 ,s F - 12mg-terni debt (see accompanying statement) 1,954,944 , 1 2,114,039
. Unamortized discount and premium on debt _ {0,920) _ (7,263) s . Total capitalization" 4,188,107 4.289,615 IA ccumulated Deferred Taxes on income _ 746,361 __
704,148 {, L Accumulated Deferred investment Tax Credits - _ 200,934 . 207,951 i ., m . Accumulated Provision for Nuclear Decommissioning 23,465 18,686, c s Construction Commitments and Contingencies (Notes 9,10, and 11) ,, _
,1 s l Current Liabilities:' _ _
3 ' Current maturity oflong term debt .106,618 120,003
, ? Accounts payable ' 144,064 ~ 150,420 ,
1 Wages payable : 36,441. 33,825 n>< 7 Bank loans , , 45,500 . 41,000 0 '0 - Conunercialpaper , , 45,000 - EIncome taxes accrued 33,288 39,917 g' , 10ther taxes accrued . !8,821 : ' 20,622 Interest accrued- 37,347 ' 40,665.
- ': 3,504 3,698 L> ' Dividends declared 80,742 LL . :Other _ ,, ,
_72,891 543,474 539,892 -
- 1. ~ '
Total current liabilities
.s? Total Capital and Liabilities 85,702,341 $5,760,322
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Deecmber 31,1090 . ' Deecmber 31,1989- .!; s pqp , y 9 [, 2 First Marh Hohds-note (a) . .. j
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- p4%% Smies due 1991 $ -
S. 30,000-'
.i - ~ 5%l >
Series due 1991 ; -- 2,000 !
' 3,500-' '
. ;f6_ .5 %%~ Series due 1991 -- ,
'4 %% ~ Series due 1992 6,000- 6,000
',' , -- 4 %% ~ . .
Series due 1993' 30,000 30,000 + 4 _
' 10 aAs ;
se,-ies due 1994 - note (b) 1,960 2,%0 ,
.:: 4 %% . - Series due 1995 ' -35,000 3L,000; ,
~4 % % Series due 1995 - 3,000 .3,000 i
, . 5 %%.
- Series due 1996 30,000:_ 30,000--~
5 %% L Series due 1996 5,000 5,000 !
< 8 %%. Series due 1996 - 10,000 10,000 l
( -- 8 %% s ' Series due 1996 " 100,000: 100,000 'j
, 5%% Series due 1997 c 40,000 40,000- i
- 5 lP 5%%- Series due 1997 5,000 . 5,000 - i 50,000-
,f 7% _ Series due 1998 50,000
, [
77.95 % - - Series due 1998 4,000 : 4,000 : :
'^* ,' 7%%, Series due 1999 _ ;35,000 35,000 !
5,000- "! 8% Series duc 1999 5,000
'+ ; Series due 1999 40,000 !
8 %% L 40,000.. 9.95%1 Series due 1999 note (b) = 57,160 64,300-- 60,000
#9% . . Series due 2000~ 60,0005
'50,000
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7%%- . Series due 2001 50,000 > !
' 50,000-7-%% ' Series due 2001 50,000 L i
? 8 %%- Series due 2001 '60,000 ' 60,000 L i
+
9 %% -- Series duc 2001 -note (b) 3,000 3,300: ; 9%% Series due 2001 - note (b) 1,738 1,912; ,,
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9%% e . Series due 2001~- note (b) 16,000 ;6,600 :t X. ; '
; 8 %% 3,3001 3,600- -l
, = Series due.2002 - note (b) =
'7 % %' Series due 2003 .
7,000' ' 7,000 1 yi .3' 18%% ; Series due 20E ,70,000i 70,l00
. f.
y.-- e 10%T 9 : Series due 20al- note.(b) 6,500 - 7,000 1
% 10 %%" Series due 2005L . _
70,0004- 70,000 + I - ~5.80% ' ' Series due 1992 to 2005'- note (c) ' 27,085 3 27,085- n ,a 8 %%: ~ Series due 2006 , 70,000 70,000 f
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L8%% - Series due 2007 60,000 60,000 ; j
' 9.35 % ! :
Series due 2008 - note (b) . 46,750. - 49,500: :; , f 9.25 9.625 % Series due 2000 ta 2010- note (d) - 60,000- .
- 9%% - Series due 2016 100,000' 100,000.
7,40 % Series due 2020- note (c) 00,000 --
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- December 31,_1990 December 31,1989 r , s ,
n ; Unnecurr d loans - ' f Domestic credit agreement, due 1991 - note (e) . S ,- . S 100,000
; Commercial paper - note (0 - 300,000- 300,000 1
.I Unnecured Notes -
. ,6% - Due to .1992 1,190' 1,295.
/
b . Missouri Environmental Improvement -
- =
~ Revenue bonds ~ 5.75-6.20% Series due to 20N
, -15,500 16,000 -
19M Series A due 2014 - note (g) 80,000 80,000 198, Series B due 2014 - n'ote (h) 80,000 80,000 198 i Series C due 2014'- note (i) 4 7,500 = 47,500 1985 Series A due 2015- note (j) '70,000 70,000 m 1985 Series B due 2015- note (j)i 56,500 56,500
# Nuclear Fuel Irase- note (k) .. ,
95,761 106,567 , . Long Term Debt . 81,954,944 $2,114,039 E a f[ . (a)"At Deermber 31,19A). substantially all of the property and plant w mortraged under, and subject to tiens of, the resivetive
, '. indentures pursuant to which the bonds were issued.- .
(b) To be retired by sinking fund - 10 VA Series to Itut,9.95% Series to ItM 9 VA Series and each 9 Vi% Series to 200&,8 % % j Series to 2001; 10% Series to 2003; and 9.35% Series to 2007. i-7(e) Environmentalimprovement Series. .e , .(d) Redeemed on Augv-t 1,19)0 at a price of 103 percent of the princial amount.
~ (e) Credit agreement with certain domestic banks which permits the Company to borrow up to $150 milbon. Interest rates will vary depending on market cont"tions and the Company's selection of various options under the agreement / At December 31,19)o,
, s . no such borrowings were outstandings .
J. - > (0 4 The Company has a bank credit agreement due 1993 which is utilized to support comtnercial paper borrowings on a long-term M basis, At December 31,1990, the outstandmg commercial paper u as at an average annuJzed interest rate of 7.98. _
. p (g) ' Adjustable fixel rate, interest rate at 6.305 per annum through May 31,1991; thereafter, interest rates will depend on market j; condit'ons i and the Company's selection of an adjusted rate for each annual period or a fixed rate until maturity.
y1 (h) Mjustable fixed rate, interest rate at 6.2th per armum through May 31,1921, thereafter. interest rates will depend on marke! , T Econditions and the Company's selection of an adjusted rate for each annual period ora fixed rate until maturity. l' (i) ' Adjustable fided rate. interest rate at S.85% per annum through February 28.1991; thereafter, interest rates will depend on market b'7 _ conditions and the Comgmy's selection of an adjusted rate for each annual perkxl or a fixed rate until maturity. L ,7; 'n-(J) Intered rates, and the periods during which nuA rates apply, vary depending on the Companie acLection of certain defined rate
- modes. The average interest rates at Decembes 31,1990, for such Series A and Series B bonds were 5.91% and 535% respectively.
- u. '(k) At December 31,1990 and 1989, $58 million and $fe millica, respectivety, are included under merent maturity of long-term debt.:
l. 3 See Notes to Financial Statements on pages 25 through 29.~ ' l . !. y l P , , t 4 s
'6 p r
.g(
- a. -
, , . _ - . . y . ~ ,
W ;;W Prefhrred Stock'
/ Union Electric Comp;ny.- i y Mpaimh6Iconss;i i
.k,T ,
,< r December 31 r 1990 - ' December 31,1989
+
- e
'~ '
Preferred Stock Not Subject to Mandatory Redemption:- T , Preferred stock outstanding without par value L(entitled to cuinulative dividends) - note (a) ; 8 ;* - Stated value of $100 per share-l , S7.44 Series - 332,201 and 427,977 shares at - .
^: . respective dates - note (b) ' '
S 33,220 ~ S 42,798 1
, S6.40 Series - 300,000 shares. _
30,000 30,000 f5.50 Series A- 14,000 shares 1,400 1,400- ,
, $5.50 Series B-; 3,000 shares 300 300
, . S4.75 Series 20,000 shares i 2,000 2,000 .
$4.56 Series - 200,000 shares 20,000 20,000
$4.50 Series - 213,595 shares 21,359 21,359 ;
$4.30 Series '40,000 shares 4,000 '4,0(X) i
- 1 _
$4,00 Series - 150,000 shares 15,000 15,000 I
$350 Series - 40,000 shares 4,000 4,000 -a
, $3.50 Series -l130,000 shares 13,000 13,000 - '
.t
? Stated value of $97.50 per sSre -- . h
$8,00 Seriesof1971- 4e5,000 shares ~41,437 41,437- =!
lfm Stated value of S92.25 per share -- ,
~ ' '
c$8.00 Series- 350,000 shares 32,288 32,288 <
-7 Y p Total Preferred Stock Not Subject to Mandatory Redemption $218,004 - - $227,582
{ Preferred Stock Subject to Mandatory Redemption: -
; Preferred stock outstanding without par value 4
[;; ,
- (entitled to du nulative dividends) - note (a) .,
Stated value of $100 per share :
-$6.30 Series - 7,800 and 8,060 shares atL
~ respective dates, due to 2020 - note (c) S780 ' $806 -
1 . e n
! Total Preferred Stock Subject to Mandatory Redemption $780 S806
=i
. (a) Authorhed Union Electric Company tothreferred stock -25,000,000 shares. 1 (b) In 1990 and 1989. the Company retirni M TI6 and 122 frJ3 shares of the S7.41 Series, (c) 1he Cornpany is required to retire 2fic shares at $100 per share on June 1 of each year.
See Notes to Financial Statements'on pages 25 through 29. 1 y 5 i 8 _f .t 4 m 22
+
. , . . _ , . ~ , _
e Statem:nt Cf RCtcined Ecrnings . union ucctric company Emwn of ruwsU l Year 1990 Year 1989 Year 1988 o Balance at Beginning of Period S 720,905 $668,670 - $610,466 c Add: Net income 2 9 4,2 19 _ i ,285,605 _ _ 291,558 1,021,124 954,275 902,024 = Deduct: Preferred stock dividends
- 14,457 18,006 29,261 Common stock cash dividends - $2,10, $2.02, and $1.94 per share, respectively 214,460 206 290 198,120 IY""li onj paid on pre,ferred stock reacquired _ _____ _ _3,014
_,5,970 _ _. ._ . .____ - ._._ .__228,9_17 _ _ __ __2_27.370-_ . ._2._33,35._4 (Under mortgage indemures as amended, free and unrestricted retained earnings at December 31,195K) amounted to $735,092) S 792,207 $726,905 ' $668,670 Balance at Close of Period
*Welerred stock didtends inch'dc dividends declared, applicable to subsequent periods.
Statement of Other. Paid-in Capital (Thoemh of dam) Year 1990 Year 1989 Year 1988 Balance 'It Beginning of Petiod $716,957 $716,071 S716,071 Premium paid on preferred stock reacquired - (999) - Excess of stated value over purchase price of 95,776 and 122.023 shares $7,44 Series preferred stock retired during 1990 and 1989, respectively 1,516 1,885 - Balance at Close of Period $718,473 $716,957 ' $716,071 See Notes to Financial Statements on pages 25 through 29. 4 23
- 7. 1;. ,
7x
~ ,
O ;<p ' < m Statement cf C:sh FI;ws- Union Electric Company - (froIwh of Danars) ,
- j
' /- Year 1990 Year 1989 - Year 1988 - . ,17 _
_ _ o
- Chsh Flows From Operations: :
, N Net income , 8 294,219 $ 285,605 S 291,558 .J
, ~ ltems not s eguiring cash -
4 4epreciation and amortization 225,760 223,290 224,396 , 3 11away Unit No. 2 costs disallowed - 50,351 --
- 3 Amortivation of nuclear fuel 58,518 59,691 68,656 Allowance for funds used during construction . (14,145) (17,908) (14,885)- -
i eed taxes on incotae, net 42,213 46,183 36,514
, ne . d investment tax credits, net '
(7,017) (7,013) 26,987 +
, Co .et acquisition expense. - - 28,845 ,
i . Changes in assets and liabilities: ~
~
R ceivables. net 15,181 (27,607) (l0,707)
< Materials and supplies - 14,4545' (23,684) - 26,191 Accounts and wages payable (3,740) (6,670) (309)
Taxes accrued - (8,430) - 2,092- 0,300 t
' Interest and dividends accrued or declared (3,512) - (31,928). (10,615)-
, Other, net ,. (2,384) 19,073 6.996
[ Net cash provided by operations 611,148 571.475 679,897
~ Cash F15ws From Investing: .
- . Construction expenditures (212,932) (192,853) .(174,903) ,
Allowance for funds used during construction . ;,145 17,908 .14,885
,-s -
Nuclear fuelexpenditures (43,332) (20,446) (29,588),
; Net cash used in investing activities _( 242,1,19) (195,391) (189,606) ;
- , Cash Flows From Financing
- . .
- Dividends on preferred end common stock - (228,917) (224,356) (227,384).
L Redemptions- , < . Nuclear fuellease (68,884) . (59,374) ' (108,753) , Short term debt - .
- ' (17,500) -:
^
long-term debt - (222,539) -(337,539)- .(253,368)~ - Preferred stock (8,087) (114,356). (84,746) - _ Issuances -
+,
[ = Nuclear fuellease 49,943- 76,956 116,003 -
- Short term debt 40,500 - ;25,500-
.. _ -Inng term debt __
60,000 ( 300,000 40,000 ,
,' ' Net cash used in financing activities (368,984) (376,169). ;(492,748) ,
L Net Change is Cash and Cash Eqr.w$ie~nts 45 -(85)' (2,457) iCash and Cash Equivalents r beginning of year 3,480 . 3,565 6,022. -
. Cash and Cash Equivalents at end of year- 8 #3,525 S 3.480' S 3.565 ,
Cash and cash equivalents include cash on hand and temporary investrnents
; purchased with a maturity of three aonths or less.
, Sse Notes to Financial Statements on pages 25 through 29.
24
~
+ .1 . - -i
_ . _ _ - _ _ - .- .~ NCt s to Fincncici St tsm:nts union acetrk comp:ny Note 1 - Summary of Accounting l'olicies accounting and remitting. FAsil is reconsidering SFAS 96 3 1he Company is regulated by the Minouri Public Service and expects to issue an 1:sposure Draft in the second Commission, Illinois Conunerce Commission, Iowa State quarter of 1991 and publish an amended statement by the Utilities Board, and the Federal Energy Regulatory end of 1991. The new standard is not expected to be > Commission. 'lhe accounting pobeies of the Company are ef fective before IW3. Adoption of Si AS 96 i not expected in accordance with the rate making practices of the to have a material ef fect on the Companyi, financial pisition regulatory authorities having jurisdiction and, as such, or results of operations. conform to generally accepted accounting principles as Miowance for Fund
- l' sed During Construction applied to regulated pubhc utilitieq A description of the Aliowance for funds used during construction (AFC) is a Compar.y s sigmficant accounting pobcies follows. utility industry accounting practice whereby the cost of Property and Plant borrowed funds and the cost of equity funds (preferred and The cost of additions to and betterments of units of property common stockholders' equity) applicable to the Company's and plant is capitalized. Cost includes labor, material, construction program are capitalized as a cost of construc-applicable taxes, and overheads, plus an allowance for funds tion. 'ihis accounting practice is intended to offset the elfeet used during construction. Maintenance expenditures and on earnings of the cost of finandng current construction, and the renewal of items not considered units of propsrty are results in treating such finaming costs in the same manner charged to income as inemred. When units of depreciable as constructioa charges for labor am' materials.
property are retired. the eri.dnal cost and removal cost,les* Under accepted rate making practice, cash recovery of salvage, are aarged to accumulated depreciation- AFC, as well as other constrnetlen costs, occurs when Depreciation completed projecta are placed in service and reflect ed in Depreciation is provided over the estimated lives of the customer rates. various classes of depreciable property by applyinR AFC rates are established by the Comp;my sosistent with composite ratm on a straight.line basis. 'lhe provision for the methodology prescribed by the r'ederal Energy depreciation in 1990,1989, and 1988 is equivatent to Regulatory Commission. Averagt anc.ial Al C rates were approximately 31 of the average depreciable cost, (As in h !!Q,9A in 1989, and 8A 'a F /,8 permitted for rate making purposes Callaway plant Callawny Rate Phase In Fian depreciation was computed on a unit of production basis The Callaway rate phase in plans effective in 19X5 as a through March 1988, and on a straight-line basis thereafter.) result of regulatory commission orders provide for Nuclear Fuel (1) partial deferral of a cash recovery of costs related to the The cost of nuclear fuelis amortized to fuel expense m a unit- Callaway plant during the early years of the plans with ofproduction basis. A provision for spent fuel disp < 3al costs recovery of such deferrals in the later years of the plans, is charged to expen,e based on kilowatt hours generated. (2) three year amortiration of cerIain Callaway related accumulated deferred mcome taxes, and (3) t wo. year income Taxen aniottization of certain proceeds from the Company s Deferred incomt taxes are provided for timing differences settlement of uranium litigation with Westinghouse. between book and taxable income as permitted for rate, making purposes, investment tar credits utilized are A 1987 order of the the Missouri Public Service deferred and amortized over the useful lives of the Commission provides that $159 million of deferred costs at properties to which they relate. December 31,1987, applicable to Missouri be recovered in rates ver the five years 1988 through 1992. The Financial Accounting Standards lloard (FASil) issuerl Statement of Financial Accounting Standards No. 96 Unbilled Revenue
" Accounting for income Taxes' (SFAS 96) in 1987. SFAS 96 1he Company accrues on its books estimated, but unbilled, requires an asset and liability approach for financial revenue and also a liability for the related taxes.
25
N:tes to Fin:ncl:1 Stctam:nts unnnen union accaric rompany Note 2 - Income Taxen each of the years IRo.1989, and 1938; and 75.(x0 shares, Total income tax expense for imo resulted in an etfcctive $160 Series in each of the years 1989 and 1988; in 1989, the q tax rate of 3% on earrJ .as before income tues (390 in Company redeemed 1,600,000 shares, $2.125 Series and 1989 and 38% in 1988). 'ae principal reasons such rates 1,125,000 shares, S4 66 Series; and in 1988, the Company differ from the statutory Federal rav are as follows: redeemed 3.tm.(m shares, $2.98 Series. 1990 19n im Preferred stock Eventual Statutory I'ederal incorne tai rate 34% an au Redemption l'riren Current Minimum lacream gDecremnes) (nmu (per gan i (per %.re) DeprWwt'ont ddlercrurn 2 2 / cal *ay rate phase-in plans p 4 g 9.no MDIm Hot (H 2 1 2 g 4g 9,;n igi,3o ;g; $g i
*
- I" 3 2 3 Weehneous, net MD s nes A i10 m ilu mi (2) (2! J3) p W im B W3 M W3 'no I ffective income tm rate 'm1 3m M g 7,, ,, g,., g g;,p 44 9. N rin 10247 lir2 47 Income tax cypense comnorients for the years shown are as y,g g gg g, gg, follows (in thousands): y ;gmy., s pe, m pp.
jppo tw mp $4 oi N1ies 105 fUS 10$ C. Taes currently payable n70Nno IN 75 IN 7', (principally Fedend): KI ho N rin 110An 110 00 included in operating t xp nwes $ 1 GN,1 M6 MNI,(e5 8128.139 g 00 9.rin of ;97l 9A M 9s 50 Indaded in other income - gg m 9.rin 93 3 9uS MWcellanenus. net (6,968) 4.16 0 (7Mui ppm 9gg g ,, g
- gg m .. . _ _ . - .
Deferred tuca (a) In the event oboluntar) hquidahon.SUb M (prtncipsd)) Ihletal): (b)The company h6 teqmted to tetire N) staen at $1m p1 share on lucluded in optating exp im - June 1 of rad > ear. Depreciation differencn 40,429 mJe7 4 h.fM l'nbdled rnenue (4,M86) (9M9 (toms) Note 4 - Preferred Stock Mandatory Redempdon C tilaway raie phaein plan * - - CIR7) Provisionk Other (4,306) t i,Kt9 0.Ruo During each of the five years 1991 through 1995, the Induded in other mcome - Company will be required to redeem $26,000 of the i (20.15M - preferred stock outstanding at December 31, IRO contract acquisition exp-nse - - (13 "12' 0,290 Note 5 - !)ebt Retiretnent Provislutia licereciation differencn 74n 7M Durig b Dve p hm December 31, IMO, the tunounts Deferred investment in credits, net of de bt maturities totaling S537 miUion are: 8197 miHion in indudnlin operating expcom J7,n17) _ ,f7 m 3) , 33MS H0h SM MUion in IRr4 S3u miuion in IMG $14 nuion in
. Total income tm expenne 8191,532 M81JWI $179 M i Iml4; and $51 million in IR)5. Amounts for years subsequent u -. u" to Hel do not include nuclear fuellease payments since the
'~
Dektred income taxes are provided for differences between amounts of buch payments are not currently determinable. book and taxable income to the extent permitted fay rate. Debt retirement provisions contained in most mortgage l making purposes. At December 31, !!Ko, the cumulative net boM iMentures of the Company require, subject to certain 6 amount of income tax timing differences for which deferred alternatives, the redemption annually of it of the principal income taxes have not been provided was $1 bilh,on. 'nn,s amount is expected to be reh,ected in electne rates when the amount (as defined) of each series of bonds. In substantially all instances, as permitted by the indentures, tinung differences reverse. the Company has been foHowing the practice of pledging In the first quarter of 1989, the Company favorably resohed property additions in lieu of such redemptions. several tax matters. The resolution of these matters Note 6 - Nuclear Fuel lense
; reduced 1989 interest expense by S27 milhon and increased The Company he a lease agreement which provides for the 1989 net income and earnings on common stock by 820 financing of nuclear fuel. Effective February 1, Ifel, the mdhon (S.20 per share).
maximum amount which may be financed under the c Note 3 - Preferred Stock agreement was reduced from S200 miHion to SI5O million. During the three years ended December 31, IMO, preferred Pursur.nl to the terms of the lease, the Company has stock, without par value, was retired or redeemed as foHows: assigned to the lessor certain contracts for purchase of in 1990 and 1989 the Company retired 95,776 and 122,023 nuclear fuel. The lessor obtains, through the issuance of shaies, respectively, S7.41 Series: 260 shares. $6 30 Series in commercial paper or from direct loans under a committed 26
revolving etedit agreement from commercial banks, the Note H - Hetirennt I'lann and Related lieneth necetniary funds to purchase the fuel and make interest The Company ...,5 non contributory, defined. benefit payments when due. retirement plans covering substantially all of its employees. lienefits are based on years of service and the employees' The Company is obligated to reimburse the lessor for all conipensation during years of emphryment. 'the Company's expenditures for nuclear fuel, interest, and related costs. funding policy is to contribute annually at least the minimum
- Obligatiomi under this lease become due as the nuclear fuel is aniount required by government funding standatd*, but not utilized at the Company *ti Callaway nuclear plant. The more than that which can be deducted for Federalincome Company reimbun,ed the lessor $76.2 ncilion during two, tax purposes. I'lan asseta consist principally of common
$(W.3 million during 1989, and $67.9 million and S50 mWion stocks and fixed income securities (including $8 million of for fuel repurchased from lemr during 1988, Company securities at December 31,1WO).
The C.ompany has capitah. red the cost, including certa'n interest costs, of the leased nuclear fuel and has recorded fension costs for the years 1990,1989, and 1988 were m inillion, S19 million, and $15 rnillion, respectively, of the related lease obligation. During the years 1990,1989, which approximately 171in each year was charged to and 1988, the total interest charges under the lease were
$13.9 million, $17.0 million, and 817 million (based on mnstruction accounts.
average interest rates of 8.6% 100, and 828,, respectively) of The plans' funded status follows (in millions): , which 87,3 million, S8.3 million, and $1.9 million, Ai pm.myr .u. respectively, were cap!tah, red. 390o
~'
ju9 ~ni ,
^"'""d"'
Note 7 - Short Term florrowings "'""""' '",'"' ""*"""' """*""""' s(4 i o upp sgn vested benctn obn son Short. term borrowings of the Company consist of bank . loans (maturities generally on an overnight basis) and A(curaubted benefit ouwann A(taty stao gntcn
~
commercial paper (maturities generally within 10-45 days). * '""'*"N""""I"'*""" Infornuition relative to short term borrowings is as follows rende red to datr 6(582) Mm $H2m ): (in thousands except ratesh plan nasch M fWr W. ~~'m Lu W ~ ~ peu (DeficiencH lucess of plan enneta vervun
--1900 - --39 , -
pn jected twncfR obhetion (42) Hi 83 I, anti loans at year end . I neccognked net (pin) or lo a (m (pp N 43,500 6 4Um $ 3MS, (37) 2 Amount oun,tmading prior mersite coat not yet recognbed in net Compniteinterr$f uite 7,7'n, (;x 30 o perimne pension runt 95 URI 26 Commercial paswr at year end . Unrecognhed net amatta at trun=ltion (13) (14) (IM Amount outstanding. 8 45,000 -. $ 20 mo prepaid pension cont [ C 3 CIs J r-.x Ie 3 Compalte interest rale H.0% -- 9tn lif fective January 1,1989, the Company amended its MnNum aggrepte short term principal retiremellt phtn to charge the benefit forinula to-
$ r"inIth y 8115,000 820U,00 s t 12pio reflect final average pay. This amendment increased the accumulated benefit obligation and the projected benefit Anruge daily shooterm horrowing. obligation at December 31,1989 by $18 million and $62 outstanding during oie year - tuillion, respectively.
Aggregate amount 4 70,6lH 6 M62ti S % 255 Wrighed nunsmite interent rue H.3% lun ten Pension costs include the followmg components (in millions) 3""" h*8
'lhe above weighted composite interest rates were calculated 1M d"d""
by dividing the applicable interest expense for the year by the average daily short term borrowings shown above. T'$ h""""'""""*' Interent cost on projected twnent at timtion 3 33 ggg 3.i 49 43 as At December 31,1990, the Company lines of credit aggregating $200 nullion ($154.5 tm had d bank ("",';",'{"d$"i committt;llion penaan coat of
' i f*"$'""W h'$ "f I n 2.1 s 19 8 15 which were unused at such date) which make available interim fmancing at various rates of interest based on the For determining the actuarial present value of the projected 1.ondon Interliank Offered Rate (1,IllO!O. the bank benefit obligation in 1990,1989, and 1988, the weighted certificate of depos,it rate, or other options, andm, support average discount rates were trt. 8.75% and in., respectively.
of which the Company has agreements with its lendmg The rate of increase in future compensation was 0% and the banks to pay annual fees of 0.1251 These lines of credit are t xpected long term rate of return on plan assets was b.5% in . renewable annually at various dates throughout the year- 1990 and 1989, and 7.5% in 1988. 27
, . e 1 - E f 6 1
j- J Not:s to Financi:15tatements (cononued) ~ union sectric company { t g
.( .
in addition to providing pension benefits, the Company Excess property insurance of $700 million pro- . provides certain health care and life insurance benefits for vided by ANI and MAELU.
, retired employees. Substantially all of the Company's A Master Worker Policy issued by ANI and
; employees may become eligible for those benefits if they MAELU with an aggregate limit of $200 million for !
.r , i reach retirement age while working for the Company. He ~ the nuclear industry as a whole to cover claims of costs of retiree health care and life insurance benefits are workers as a sesult of initial radiation exposure on recognized on the basis of claims paid., Such costs totakd or after January 1.1988. Under this policy, the
$11 million, $9 million, and $7 million for 1990,1989,and
, Company could be subject to a maximum 1988. {espectively. retrospective premium assessment of $3.2 million. , ;
; , -Tlie Financial Accouriting Standards lloard has issued Accidental outage replacement' powei cost
. Statement of Financial Accounting Standards ho.106,
, insurance provided by NEIL Thereunder, the - l ! < *En.ployers' Accounting for Postretirement Ilenefits Other Company is insured for up to $2 million er week
,%an Pensions" (SFAS 106). %e Company plans to adopt for the first year, commencing 21 weeks after SFAS 106 in 1993. SFAS 106 will requi c icerual of i
initiation of the outage; up to $1.3 million per week ~
/postretirement benefits during the years an employee for the second year; and for up to 1 >
provides services. De impact of this new standard has not '
$0.7 million per week for the third year. Under this
; been fully determined, but the change likely wdl result in- policy, the Company could be subject to a
, significantly greater expense bemg recognized for provision maximum annual retrospective premium assess-of these benefits. He Company expects that a regulatory
' inent of $2.5 million.
' asset will be recorded to reflect amounts to be recovered u theough rates in the future as the costs are' paid. %e ' Atomic Energy Act, as revised August 1988 by the - . . ,
iAccordingly, adoption of SFAS 106 is act expected to have a - Price Anderson amendments, covers liability to third significant. Impact on the Company's financial position or parties for a nuclear incident and currently limits such results of operations. liability to approximately $7.8 billion for each .r.uclear ',, Incident. Coverage of the first 8200 million of liability is
, . Note 9 - Construction Commitments ' povided by ANI and MAELU. ne balance is provided by
^
o Re Company is engaged in a construction program under ' utility industry retrospective assessments. %e Company's which expenditures averaging approximately S260 million maximuni potential assessment under this plan would be
- tre anticipated dunng each of the next five years;
$63 million per incident payable in annual installments of '
' '~
Note 10 - Contingencies . - : not more than $10 million. Additionally,if the sum of all ,
+
, ne Company's insurance coverage for its Callaway plant is - public liability claims and legal costs arising from a nuclear a cs follows: - incident exceeds the amount of primary and excess coverage in force, the Company can be assessed an e
' ' . Property. insurance coverage of 8500 million - additional $3 milhon;
'provided by American Nuclear Insure-s (ANI) and ,
_ Mutual' Atomic Energy Oability Underwriters To the extent that any losses arising from a nuclear incident -
. (MAELU).- at Callaway plant exceed the limits of, or are not subject to.
" insurance; or to the extent such insurance becomes e
Excess property insurance of $925 million pro, , vided by Nuclear Electric insurance Limited , unavailable in the future, the Company may , retain the nsk (NEIL), a mutual insurer established by the f kss as a se1finsurer; Although the Company.has no. .
. , < utility industrys Under this policy, the Company . reason to anua,pate a serious nuclear me dent at'Callaway :
- could be subject to a maximum retrospective. Lplant, if such an m, eldent did occur, it could, have a material -
, ' premium assessment of $6.6-million in any one- but presently undeterminable adverse effect on the policy year if NEIL's property losses exceed - . Company's financial position. ,
7 g available funds.1De policy also provides up to an On November 15,1990, the Clean Air Act Amendments of 9 additional $200 million of coverage for premature- 20 were enacted. Under this legislation, the Company is .
,decommlasioning ' costs in excess of funds required to reduce total anmial emissions of sulfur dioxide ~
previously collected for decommissioning. Such by approximately two thirds by the year 2000. Significant -
- coverage'is limited to a premature decom- reductions in nitrogen oxik &lso be requireil. The final ' _
1 lmissiomng which results from a mar accident . version of the legislaticn allows much more flexibility for yf n , g
~t 4 %
x _o y .u -, ,- d . w..-..I-m.-- - w w.s #,-u.w-.w,---.-.-.v,-~ww-,w-.._
- -m--n,-e,M m.e ~ -.--------..-m,-
t E '. I
- s compilance than earlier proposals. This' increased permanent stonige and disimsal of sient nuclear fuel. DOE flexibility will allow the Company to reduce sulfur dioxide currently charges one mill per kilowatt-hour generated for emissions erlier and comply with the Act at considerably future disposal of spent fuel. Electric rates charged to less cost than would have been required under the original customers provide for recovery of such costs.
bill. With switching to low-sulict c. al and early banking of Callaway plant decommissioning costs are estimated to be emission creditik the Company antie! pates that it can S336 million in current year dollars. Electric rates charged comply with the requirements of the law with no sigmficant to custorners provide for recovery of decommissioning- J increase in revenue needs bemse the related capital costs. coMs over the life of the Callaway plant. Amounts so 5
. currently estimated at about $300 nullion over the next collected frem customers are deposited in a trust fund i decade, wtll be largely offset by lower fuel costs. which has been established to provide for decommissioning
~ ~
; ' s of December 31,1990, the Conipany was designated a A costs.
' potentially responsible party (PRP) by federal and state- L>uring 1988, the Company obtained long. term power environmental protection agencies for five huardous waste supply contracts with certain of its wholesale customers, t
siter Other huardous waste sites have been ident(,d for As a condition of such contracts, the Company will not i 3
- which the Company msy be responsible but has not Leen recover $29 million ($15 million net of tax) of Callaway plant
>__ designated a PRP The Company is presently investigating- related phase-in plan deferred costs applicable to these the remedial costs that will be required for all of these sites. custoraers. As a result, the Company charged $15 million flowever, such costs are not expected to have a matenal net of tax (S.15 per share) to expense in 1988.
adverse effect on the Company's financial position. { The Company is itivolved iri legal and administrative We W - Supplementary information proceedings before va'rious courts and agencies with (thousand. or pottar.) _ 1990 Jm9 _ 19 9 respect to matters arising in the ordinary course of business, some of which involve substantial amounts. M*ia'*"a"" ""d '"Pai
- ha'8*d
" Management is of the opinion that the final disposition of . d$*jbn.ne, u 7a 309 sino sitc977 these proceedings wd1 not have a maten,al adverse effeet on '
(nher acrounts w 10,890 to w to.7e
. the Company's financial position. sissi siii7,igi Ei375s ;
~~
- in November 1990, the Mimuri Public Ser vice Commission IkP'eria6"a. depleti"a and a niangude approved a settle l ment among all parties in a rate design **j"'$lon[n proceeding invoh1ng the Company,a Missouri ch ctne rates. on. rating expen.c. 6225,700 8223.290 8224.396
' Under the terms of the settlement, rate decreases for, other account m 4,930 4.v* . 4in commercial and industrial customers will reduce annual s2s690 5ih7.7s WRisi revenues by approximately S30 reution. 'Ihe settlement also . Tmes, other than payroll and provides that no ' party shall f[e fer a general increase or in("me ta5e* charged directly tot decrease in~ the Company's Missourt electric retes prior to - Uy','/",","l*"dl'rI.onal property 8 78.559 s 79p9 6 79.W
. January 1,1993, except that the Company would be allowed tacen.c and franchiw 94,200 95.276 9we
't to file for an increase if certain adverse events were to occur. Mi cellanmus t .980 1.7e 2.213 Note 11 - Callaway Nuclear Plant 374'738 376 "
- 176 919
- In 1981, the Company canceled construction of Unit No. 2 Other 8*""t* 4*304 4 H7 ' '3 "
. at its Callaway plant. In 1989, the Missouri Supreme Court stgo43 gjg sg
- - refused to hear an appeal of a Missouri Public Service (a) A substantial portkm of amounts charged to other accounts is Commission order that denied recovery of Callaway' Unit
~ anonted tuperaung openen ihmus (kasg amunh
'No. 2 costs aEIslicable to the Missouri Jurisdiction. As a .
(b)The amotmts of payroll taxes h>r the years lie % 19M9. and lim 8 were result. in 1989 the Company wrote off $50 million ($30 $39,4(nag g 8. man and s18 onvrn ropectively. million net of tax or S.30 per share) of the recorded asset tenhe amounts of rmhics and adverti ine costs were not materlat - related to'the portion of Callaway Unit No. 2 applicable to (dataunternt paid (act or amount capitalizedn in lin% um9, and 19e
~ was sie nam. s177 million, and s179 mittion rnn etively.
the Missourijurisdiction.- (c) Total income taxes paid in 19'u !!*9. and 19M were $ tM millmn,
' Under the Nuclear Waste Policy Act of 1982, the U. S. Slu mbn; and sloi million. rnnectively Department of Energy (DOE) is re'sponsible for the
~
This report and the fmancial statements contained herein are submitted for the information of the stockholders of the Company and are not intended to induce,or for use in connection with.any Sah nr purchaw of any wcunties of the Company, 29 .
\ P
.,,,4m.U . . - _ . . m..~_ __ , . , . , . _ . . , -,_,_m .,r ., .,,y..,_.., _.4,~m. ,. .,. ..,.,-...M.,-..,c,.,_,,,...- ,%. , . . , ,
M unNt.an2;3B&M<9 j Ferriep@.oG Wuussion and Analysis union nectric company Iij , c [' i ' NeStills Of Openttions territory experienced economic growth that added 26,(MX) f+- Earnir!gs and eat nings per *. hare Auctuated due to many jobs to the area economy, increasing employment by 2.3t conditions, the primary ones being: the elIcet of weather and electric kilowatt hour sales normalized for abnormal variations, the timing and amounts of rate changes, growth weather by 3.1% in lirM. the Company's ser vice territor y ex-in customers' use of chctricity, fluctuating operating costs, perienced pmitive but slower wonomic growth than in 19Mt the effect of costs disallowed t,y regulatory authorities, Area employment increased by only 9.800 jobs, or .R nor. changes in interest expense. and reduced preferred ste k malized kilowatt hour sales only increased 24 over 1989. dividend requirements. Other icw significant factors contributing to the variation of
. electric sales are conservation, installation of energy of ficient The impacts of the more signif.icant items affecting d changes to and from ahernative fuel' sources.
1 - revenues, costs, and earnings during the past several years are analyzed and discussed below. Operating thpenses _Elec_tric._Opernting itevenues-_ l uci and Purcha ed pimer - Vortanon frorn Prior Yust i url: 6tilWns of 16Aaro ,lWO 19+ 19
- Varnhon in rencration 6(6.6) 911W $M5 Rate variations R( l 1.2) 5 16 O W7 the 6.1 U7 ?> t 19 7) llicet of weather untiations (M.4) Ibl b) 415 knornmor of uranktn Growth and other 28.9 tU M 16 htohon s.i nleturnt ;.2 2b 11.0 g ga gpp w3 Generanon of Tw.<nue. 4.7 0 7) qua
-~ -
Net interthange i.alce and purcluined immer snrintion (6.H) @2 ~On:n The decrease in 1990 electric revenues applicable to rate so n,) so.4 ) s ao variations primarily reDects decreases .m M,issuun electne
< rates made in accordance with the rate design settlement h h- in W W ud Wm d pu cm in effectn;e hovember 26.1990 (see Note 10 under Notes to 1990 renects the replacement of steam generation (which I manctal Statements). Under the terms of th,is settlement.
4 duad h m dm m Nw n Mig oub rate decreases for conunercial and mdustrial customers wdl w W h N hydro generation and decreased pur-reduce revenues, on an annual basis, by approximately 830 hd mm r cA h was of fset in part by increased nullion. Sununer/ winter rate differentials. increased by the fuel prices and reduced generating efficiencies. The de-settlement, are expected to be revenue neutral on an annu-
, crease in total fuel and purchased p>wer costs in 198" re-al basis. Ilowever, the implementation of lower winter rates Deck Tduced generation due to the Callaway refueling out-as of hovember 26 reduced 1990 revenues. Ihe decrease age in 1989 and lower prices, offset in part by increased in 1989 electne revenues appbcable to rate vanuons pn-purchased power costs. 'the incrense in total fuel and pur-marily redects decreases m wholesale electric rates. ,lhe chased power costs in 19M re0ects greater generation due increase in 19M electric revenues apphcable to rate varia, to increased sales of electricity to all classes of customers tions reflects rate increases under the regulatory approved ad no Glmy mfwlirg omage in 19% of(set by greater Callaway rate phase-in plans, nterchange sales and lower fuel prices.
'lhe effect of weather variations on 1990 electric revenue Other variations in operating expenses during the years reflects the abnormal weather m 1990, particularly the 1988 through 1990 generally reacct recurring conditions warmer than normal weather m the first and fourth quar' such as gmwth, innation, and wage increases. In 1940, op-ters, as compared to overall normal weather ,m 1989. The crations expenses, other than fuel and purchased power effect of weather variations on 1989 electric revenues re~ costs, increased $13 million, due primarily to a $12 million flects the abnormally hot 1988 summer. The effect of increase in wages and other employee benefit expenses weather on 19M chttric revenues reflects the abnormally and a S4 million increase in Callaway plant expenses, offset hot 19M summer as compared to 198'i.
by a $3 million reduction in natural gas purchased for ie-The variation in electric revenues applicable to growth and sale. In 1989, operations expenses, other than fuel and pur-other factors in 1989 and 1990 primarily re0ects the differ- chased power costs, increased $19 million, due primarily to ences in economic growth experienced in the Company's a $16 million increase in wages, pensions and other employ-service territory over those periods. In 1989, our service ce benefit expenses and a S3 million increase in Callaway 30
. _ _ . _ _ _ _ ___ ~ _ _ __ _ . __ ._ -
t a plant expenses. In 1988, operations expenses, other than er payroll taxes. In 1989, the $1 million increase in other fuel and purchased power costs, increased S7 million, due taxe , charged to operating egenser is primadly due to in-primarily to a $6 million increase in wages and other em- creased real estate taxes. 'lhe 1988 increase in other taxes playee benefit expenses and a $3 million increase in natural charged to operating expenses is due to a S4 million in-gas purchased for resale, partially of(set by a $2 million de- crease in license and franchise taxes resulting from in-crease in Callaway plant extenses. creased revenues. In 1990, m'aintenance expenses increased $20 million, Interest chich includes 814 million at generating plants other than In !!M the interest expense increasal Sil million, primari-Callaway plant and $2 million associated with Callaway's ly reflecting a $27 million reduction in 1989 attributable to
- fourth refueling. In 1989, maintenance expenses decreased the favorable resolution of sevoal tax matters partially off-87 million, renecting a $14 million decrease in maintenance set by reduced interest resulting from refinancing higher expenses at generating plants other than Callaway, offset cost debt with lower cost issues and reduced total outstand-by a $7 million increase in maintenance expenses at ing debt. 'Ihe 1989 decrease in interest expose reflects Callaway plant, attributable to Callawayi third refueling in the favorable resolution of the tax matters in 1989 (see early 1989. In 1988, maintenance expenses increased $4 Note 2 under Notes to Financial Statements), 'Ihe 1988 de- ,
million, primarily reflecting increased maintenance egens- crease in interest of $30 million primarily reflects the refi-es at all major coal generating plants, offset by an $11 mil- nancing of high cost lebt with lower-cost inues and re-tion reduction in Callaway plant maintenance egenses, re- duced total outstanding debt. flecting the planti second refueling in late 1987. Callawny Rate Phase-In Plann and Costs Dhudlowed Depreciation expense increased $5 million in 1990 primari- See Notes 1 and 11 under Notes to Financial Statements for ' ly due to an increase in depreciable property. Depreciauon information relative to Callaway rate phase-in plans and the expense increased S19 million in 1988 primarily due to the Callaway Unit No. 2 costs disallowed. elfeet of the 1987 Callaway refueling outage and the change Miscellaneous Other income and Deductionn, Net m 1988 from the unit of productmn method to the strmght' The 1990 increase of $2 million in Miscellaneous, net pri- , line method of computing tallaway plant depreciatmn in ac- marily reflects miscellaneous interest income. 'Ihe 1989 in-cordance with regulatory commisnion orders, ame of SI6 million in Miscellaneous, net primarily re-Amortization of phase-in plans deferred costs decreased in flects SIS million net of tax charged to expense in 1988 re-1990 and 1989, by $2 million and $3 million, respectively, re- lated to obtaining long term power supply contracts with flecting the conclusion of the Illinois and wholesale customer. certain wholesale (ustomers (see Note 11 under Notes to phase-in plans. Amortization of phase-in plans deferred financial Statements). costs increased $35 million h 1988 primarily re0ccting amor-3 Clean Air Act Amendmenta tizatmn of the Missoun portion of accumulated Callaway re- On November 15,1990, the Clean Air Act Amendments of lated deferred costs which began in January 1988. 1990 were enacted. Under this legislation, the Company is income taxes from operauons decreased $11 milllon in required to reduce total annual emissions of sulfur dioxide 1990 due principally to lo'wer pre tax income. Income by approximately two-thirds by the year 2000 Significant , taxes from operations increased $9 million in 1989, princi- reductions in nitrogen oxide will also be required. The pally due to higher pre tax income and the decreased final version of the legislation allows much more flexibility amortization of certain Callaway related accumulated de- for compliance than earlier proposals. This increased Oexi-ferred income taxes (see Callaway Rate Phasein 11ans in bility will allow the Company to reduce sulfur dioxide emis-Notes 1 and 2 under Notes to Financial Statemen:8). sions earlier and comply with the Act at considerably less income taxes from operations increased $14 million in cost than would have been required under the original bill. 1988 dut principally to decreased amortiration of certain With switching to low sulfur coal and early banking of emis-Callaway related accumulated deferred income taxes. off- sion credits the Company anticipates that it can comply set in part by a decrease in pre-tax income, with the requirements of the law with no significant in-nease in revenue needs because the related capital costs,
'In 1990, the S2 million decrease in other taxes charged to estunated at about S300 mdlion over the next operating expenses is primarily due to decreases in real es- C""#"OY.dl be largely of fset by low er fuel costs.
decade,w tate and license and franchise taxes partially offset by high-l 31
M:n g:m: nth DiscussiCn cnd Anclysis mmuem union ctectra comp:ny Uguldity and Capital Resources enactnl by the Tax Reform Act of 19si to also apply to the Constructioa expenditures averaging approximately 8760 ITC carryforwards generated by plant placed in service million are anticipated during each of the years 1991 before 1986. In ItL% while total provisions for federal in-through !!M The Company completed the constructior, come taxes were reduced as a resuh of the reduced tax rate of its Callaway plant in late 1984. Additional electric gener. provided by the Tax Reform Act of 1986, the amount of in-ation capacity is not anticipated before the late IW0s. For come taxes currently payable increased principally as a re-funds required in addition to construction expenditures, sult of the reduction of ITC carryforwards. see Notes 3,4, and 5 under Notes to Financial Statements. See locome Taxes m Note 1 under Notes to Financial lhe Company has an agreement with Arkansas Fower and Statements regarding Statement of Financial Accounting Light Company, a subsidiary of Entergy Corporation, for Standards No. !E ' Accounting for income Taxes". the cash purchase of their Missouri retail electric distribu-Effects of inflation and Changing Prices tion properties in 1991. The purchase price is expected to lhe Cm any's financial Statements reflect the historical be approximately $70 mdlion The agreement is subject to coM S vendand kunwtions occurring at times when the approval by various regulatory authonties-purchasing power of the dollar was different from the A nuclear fuel lease agreement provides for the Gnancing of present.1he elfects of inflation and changing prices on the the Company's nuclear fuel requirements. Ef fective Company's financial statements are roost significant in the February 1,1991, the maximum amount which may be fi- areas of depreciation and property, plant, and equipment. nanced under the agreement was reduced from $200 mil-The current replacement cost of the Company's utility plant lion to $150 million. At December 31,19W,054 mdlion of substantially exceeds its recorded historical cost. Ilowever, nuclear fuel was 69anced under the lease. the regu*ery process limits the Company to the recovery The Company plans to continue utilizing short term debt as of the historical cost of utility plant through depreciation. support for normal operations and other temporary While the regulatory process does not reflect the current requirements (see Note 7 under Notes to Financial cost of replacing utility plant, past practice indicates the Statements). The Company is authorized by the Federal Company will be allowed to earn on and to recover the Energy Regulatory Commission (FERC) to have outstand- increased cost of its net investment after facilities are ing at any one time up to $600 million of short-term unse- replaced. cured debt instruments. 'ihe Conmany, by having assets such as receivables, fuel Tc.x Matters and materials inventory, and deferred charges, incurs a The Technical and Miscellaneous Revenue Act of 1988 loss of purchasing power during periods of inflation (TAMRA) contained several provisions that affeet the because, after conversion, the cash received for these items Company. 'the most significant provision was the substan- will purchase less. More than offsetting such assets, how-tive law change contained in the Technical Corrections ever, are significant amounts of long term debt, deferred in-sections of the Act which retroactively extended the 35% come taxes, and current liabilities w 5 ih will be paid with reduction in investinent tax credit (ITC) carryforwards as dollars of reduced purchasing power. l l l l l l 1 i l l l l 32
s Operating Statistics union tiectric company (
, 1990 1989 1988 1987 1986 Electric Operating Revenues 600): _
Residential S 763,539 $ 757,139 S 778,121 $ 749,786 S 681,002 Commercial 672,907 668,796 659,075 628,067 580,323 Industrial 411,939 411,614 403,837 393,597 373.196 Other chitric utilities 62,167 64.262 70,133 71,100 63,428 n , Miscellaneous 28,619 2M,073 27,130 26,867 24,731 .L Total Electric Operating Revenues 61,939,171 $1.929,884_ S1,938,296 $1,869.477 _st 722.680 Kilowatt Hour Sales (000,000): Residential 9,810 9.724 9,957 - 9,585 9.283 Conunercial 10,274 10,142 10,009 9,581- 9.306
, industrial 8,708 8,605 8,417 8.217 8,073 Other electric utilities 1,511 1,534 1,501 1,487 1,450 Miscellaneous 142 141 139 138 '145
. Total Kilowatt Ilour Sales 30,445 30,146 30,023 _
29,008 28,257 Electric Customers (End of year): Residential 957,102 '951,154 941,673 929,776 916,261 Commercial- 120,392 119,307 117.333 ' 114,858 111.322 Industrial -7,450 6,714 6,576 6,569 6,595 Electric utilities 21 21 21 21 21 Other 1,644 1,588 1,509 , 1,548 1,498 ' Total Electric Customers 1,086,609 1,078,784 1,067.172 1,052.772 1,035,6W
. Residential Customer Data (Average):
, Kilowatt hours used 10,283 10,289 10,645 10,390 10,227 Annualelectric bill $800,80 8801,14 $831.91 $812,73 . S750.24 7,79c 7,82c 7,820 i Revenue per kilowatt hour 7.78C 7.340 Gross Instantaneous i Peak' Demand (Kilowatts) 7,465,000 7,210,000 7,340,000 7.255,000 6,810,000 /
~ Capability at Time of Peak,-
Including Net Purchases (Kilowatts) 8,132,000 8,255,000 8,028,000 8,236,000 7,955,000 Generating Capability at
; Time of Peak (Kilowatts) 7,760,000 7,837,000 7,791,000 830,000 8.031,000-
- Coal Burned crnns) 10,643,000 10,711,000 10,876,000 10.245,000_ _ 9.961,000
. Price per Ton of Coal 833,85 833,12 S35.25 S37.31 $37.01 s
, l.
, ,1- e
_ _ - _r
.s-Selected Financidl information union sectric company ,
' l (nasave or Don.ws t uent sNves and rer snse Anwna and Ratiou 3 t
1990 - 1989 1988 1987
? D ' : Results of Operations
. _. Operating revehues 82,023,017 $2,010,306 $2,029,107- $1,946,411
- Operating expenser 1,565,477 1,543,t38 1,544,953 1,457,957 Operatingincome' 457,540 466,406 484,154 488,454 :
, Callaway rate phasein plans 237 227 2,408 92,791 l (23,169)
Deferred costs dirallowed - -- .- .> Callaway Unit No. I costs disallowed. net - - - -
, less on cancellation of
. Callaway Unit No. 2 net _ - (30,196) - -
Niowance for all funds used . u during construction 14,145 17,908 14,885 20,477
' Miscellaneous, net 9,881 7,769 - (10,648) (15,714) ,
Interest 187,584 176,571 199,241 228,961
~
Net income 294,219 ~ 285,605 - 291,558 333,878 Preferred stock dividends 14,693- 19,134 30,425 36,522'
, Earnings on common stock 279,526 266,471 261,133 297,356 Average commoe shares
- outstanding 102.123,834 102,123,834 102,123,834 102,123,834 sets', Obligations, and Equity Capital 0' ear End) _
Total assets 85,702,341 $5,760,322 . S5,827,246 $5,957,611 .
- tong-term debt oh!idations .1,948,024- 2,106,776 - 2,188,til4 2,357,615
, . Preferred stock sut xt to ~
mandatory redemption 780 806 60,832 ' fd,fd)8
?- ; Preferred stock not subject to ,
, < mandatory redemption 218,004 227.582 279,784 354,784 -
Common equity _ :2,021,299: '1,954,481 1,895,360 1,837.156. i Financial Indices: ( ,
- Earnings per share of common stock
.(based on average shwes outstanding) . 82,74 $2.61 - 82,56 4 S2.91 !
Cash dividends per share of ' .
- common stock ' $2.10 $2.02 $1.94 , $1.92 Return on average common stock equity 14.10% 14.03% 14.08% 16.7W Ratio of earnings to fixed charges (a) '3,57 3.63 - _ 3.35 3.30
- Book value per common share 819,79 $19.14 $18.56 $17.99 CCpitalization Ratios O' ear End): ,
,, X ! - Common equity. 48,3% 45.fA 42.8% 39.8% - 'N .' Preferred stock not sub.ht ti mandatory redemption 5,2 ' , 53 -6.3 7,7
,' , Preferred stock t,ubject to .
'i-
- mandatory redemption- - - 1.4 : 1.4 - "-
long term debt , 48.5 49.1 49.5 51,1 I" 0 100,0% 100.0% 100.0L 100.0i , (a) Earnings uwd in computing the ratio of earnings to fixed charges ennaist of net income plus fixed charges Onterent a.id an appropriate amount of rentals charged to operating ex;rnses) and income taxes,
.g' -+. )> , ,c .,4.. , , , ,. - . . _ , +-.,,--a . - , - - , - n,-, -.--,# .--.-,.....~,:.-,-,.--.._--,.._.-
. . . . . . .. . ~ _ _ _ _ . - .. _ _
4 _-___ _ _ _ _ . _ . -
, >+ ,
s
, ' , , I ,. '
n 4 1986 1985 1984 1983 1982 1981 1980 i L St,807,182 S1,591,763 St 412,414 $1,401,086 S1,217,705 S1,105,536 S'i,077,876 1.287,572 1,173,187 1,170,128 1,160,816 1,013,054 922,617 886,720 519,610 418,576 240,286 240,270 204,651 182.889 191,156
, 59.861 ~ 74,631
- (234,780) - - - - - -
- - - .- - (28,469) -
' ~
15,812 106,754 329,669 251,'107 198,093 155,625 92,055
' 3,947 (1,709) 1,619 2,509 2.364 (787) 3,638
-247,409 254,320 - 247,308 218,530 - 200,554 - 180,312 131,725 351,821 109,152 324,266 275,556 204,554 128,946 155,124
~ 49,245 49,836- 50,185' 46,118 '40,344 29,863 30,082 302,576 59,316 274,081 229,438 164,210 99,083 125,012 ,
- 102,123,834 100,403.016 96,574,699 86,744,282 - 76,251,024 -67,179,275 59,675,995-85,895,211 85,738.620 85,819,996 $5.146,666 $4,573,783 S3,992,742 S3,552,101 1 2,436,092 2,454,687 2,457,381' 2,108,017 2,000,405 1,719,927 1,479,229
- 165,3M - 173,160 178,936 180,962 182,988 110,014 112,040 354,784 ', 354.784 354,764 354.784 279,784 ~279,7M 279,784 j 1,743,189 _ f l,630,466 1,695,239 1,526,188: 1,299,814 1,135,826 1,(}l5,100 w - - -
^ S2.96 $0.59 S2.84 - S2.64 ' S2.15 St 47 .
$2.10 -
$1.86 $1.78 $1.72 . $1.66 $1.58 S t.52 - $1.48 18.16% . 3.81% 17.23% 16.79% 14.17% - 9.40% 13,11%
J 1,14 2.88 2.89' 2.49 2.85
*2.79 ,
_ 2.00 - S17.07 S15.97 817,10- S16.12 S15.40 $15.19 S15.81
~ ~
37.1% 35.3% 35.2% 3E~ 34.5% 35.0% 351ft 7.6 7.7; 7.6 8.5 7,4 8.6 9.6
- 3.5 3.8 - 3.8 _ 4.3 ~ 4.9 3.4 3.9 51.8 -
53.2 52,4 50.6. 53.2 53.0 - 50.7
.100.0% - 100.0% 100.04 100.0L 100.0% 100.0E 100.0%'
r !' 35 4
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5 lected Outrt rly infcrmction union ciectric company (%c,svi, at (mys fi:ept oc~ wer Atofica _. s .-- . -. - . -. -. - . _ . - , . . . . - . - - - -- .. Earnings Ear ungs on Per Share Operating Operating Net Common of Stock _ _ _ _ . . _ _ . . . . _ . _ _- _ . SC?'.m3ps - _ Jngo(ne ._, , ,Ingm_ne . . Stock Outstanding Quarter Ended: March 31,1990 8446,853 8 84,898 6 41,170 8 37,362 S .37 March 31,1989 419,390 78R)8 36.058 30,328 .30 June 30,1990 500,760 125,098 82,698 79,045 .77 June 30,1989 490,312 111,731 65,571 60,265 .59 September 30,1990 653,885 195,344 154,272 150,624 1.47 rieptember 30,1989 618,775 185,716 137,952 133,412 1.31 December 31,1990 421.519 52,200 16,079 12,495 .12 December 31,1989 451,829 90.213 46.024 42.466 .41 inq4ementanon of increard nunutwr/ winter rate difterentials under Or terms of a hbunuri rate design settlenent (we Note inu mk r Notes to linancial Matenwnts) decruwd net income and eartiings on annmon atwk by 86 millmn th ger share) in die tourth quarter of IW) 1he Callamay plant was refu-eled in the furth quarter of IWO and the wcond quarter of IW the etlect of which d,treawd net inome and earnings on common stod by $18 millmn (3.18 p r share) in each of these quarters.1he wnteef f of the recordw! annet related to uw portkin of Caltamay l'nrt b o :" applicable to the Mmouri)urivbe-tbn dectrawd net income and earnings on comnmn stock by 8V) milhon t8.10 per share) in ur first aucter 'l mm. Ihr taurable rewlutkin of several tax matters increased net income and earnings on common stxk by S20 milhon (S 20 per shart) in 0,a fint quar'.cr of 19m _Co.._m_m_ _o n_S_t o c k.._P r_i c e_s. ._a n d. D..._i v i.d._e n d_s .w_.. ____ _- _._.. _._. _ _. ___. _ __ .._ _. 1990 Price Ibmge 1990 Iu89 Pnce Ibnee 1989 liigh lav Diyidends(b) Quarter Ended Iligh low Dividends Per Share: $28 7/n $20a/= 52c March 31 S24 W S23 SOC 27 3/n 24 7/a 52 June 30 26t/2 23 3/4 50 27 % 24 5/8 52 Sep' ember 30 27 % 26t/s 50 30 253/4 54 December 31 28 % 26 52 tal At December 31,1Wo. LJnion Electne Company common stuckholders totated 128 M2. (New Lrk 'itock I'xt hange symtml. UEP) . (b) At December 31, IM, retained earnings toted $792.207.(oA ur der the Company's amendal mortgage indentures, $$7,115,000 of total retained earnings was restricted agamst p.tyment of rummon dhidends - except those payable in common stock. Investor information DRPlus DMdend Reimwtment and Stock Purchm.e Pnigmm Office Trunteca, laSalle National Our stockholders, employees, and customers can buy shares of 1901 Chouteau Ave. Authenticating Trust, N A, U.E. common stock through our DRPlus program, without paying St. louis, MO Agenta, Trustee brokerage commissions or senice charges. Participants can rein- (31 0 621 3222 Hegiutrms, and Chicago, IL vest dividends and/or make optional cash investments. To get Puying Agenta l'or more information about DRPlus just complete and mail the card Malling Addreas y, South Side Nvional g,. , attached to the cover of this report. You can also write or call: PO. Ilox l19 "" "' Ilonda St. Inuis, MO 631f>6 Trustec Union Electric Company Toll Free Phone lhutmen's Trust St. Inuis, MO Stockholder Senices Department 1404255 2237 Trannfer Agent and Regintrar C nn TMw Ilanker,s _f rust P0. Ilox 149 St. louis Area 9' MO St. louis, MO 631f4 554 3502 Union Electric Company Company liarris Trust and New York, NY St. Inuis, MO Savings llank and Union Electric D.G. Donovan. , Co-Trustees
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St. Inuis, MO ' C.hicago. it 36
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' This is not an offer to sell, or a sohcstation of an offer to buy, any securities l i I e5 lllll Yo l 22'h s i I ,I i l = A ' J l E i 1
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i Name Street address Oty. State. Zip ; _ _ __ _. . _ . _ - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - ~ ~ ~ ~ ~ ~ ~ -
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Ofrectors and Officers Board of Directors Officers
- J. A. Baer 11 .
William E. Cornelius James J. licisman Management-Business Consuhant. Chairman and Vice President- Customer Service Former Chairman and Chief Executive Chief Executive Officer Officer- Stix. Baert Fuller. Donald W. Capone Earl K. Dille Vice President- Engineering and Sam H. Cook lYesident Construction Chairman-Central Bancompany and its subsidiary Central Bank, which con. Donald E. lirandt William J. Carr ducts a generalbanking business. Senior Vice President- Vice President - RegionalWest S Finance and Accounting
- William E. Cornelius G. J. Ilaven Chairman and Chief Executive Officer Charles A. Hremer Vice President- Research and Senior Vice iYesident- Development
- Earl K. Dille Technical Services President William E.Jaudes Charles W. Mueller Vice President and GeneralCounsel
- Charles J. Dougherty Senior Vlee lYesident.-
Former Chairman and Administrative Services R. Alan Kelley Chief Executive Officer Vice President- Energy Supply Robert O. Piening - ~.
'Ihomas A. Ilays . Senior Vice IYesident- lierbert W. loch President -The May Power Operations Vice President-11uman Resources Department Stores Company, a nationwide retailing organization. Donald I'. Schnell II rG. & yer .
Senior Vice President . VJe rhaent -Information Services a Thomas II. Jacobsen Nuclear Chairman, President, and Chief KehmlJ. Montana ; Executive Officer-Mercantile Charles J. Schukal Vee President - Industrial Relations
~ Bancorporation Inc., a bank Senior Vice President-holding company. Customer Services William A.Sanford Vi hidd-Smdy him
- John Peters MacCarthy -
. Chairman and Chief Executive Officer- f, ,3,jd n - ower Plants Boatmen s Trust Company, which conducts a general trust William C. Shores bustress. Vice President-Regional East ** Ilarvey Salistman Jerrel D. Smith Former Chairman of the Board- Vice President - Environmental INTERCO INCORPORATED. and Safety 4
- Stewart W. Smith, Jr. II. E. Wuertenbaccher, Jr.
-** FormerVice Chairman Vice lYesident- Corporate Communications Adviser to the Board Ronald C. Zdeltar Isaac !!. Grainger . Vice President-Transmission and Distribution Former President -Chemical Bank.
Joseph M. Pfeifer Controller James C. 'Ihompson Secretary
- Member of Executive Committee 1. A. Esswein
" Member of Auditing Committee Treasurer 37
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