ML18095A876

Forwards Public Svc Enterprise Group,Inc Annual Rept for 1990, Philadelphia Electric Co Annual Rept for 1990, Delmarva Power 1990 Annual Rept & Atlantic Energy Annual Rept 1990.

ML18095A876
Person / Time
Site:	Salem, Hope Creek
Issue date:	04/15/1991
From:	Miltenberger S Public Service Enterprise Group
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML18095A877	List: ML18095A876 ML18095A878 ML18095A879 ML18095A880 ML18095A881
References
NLR-N91062, NUDOCS 9104190183
Download: ML18095A876 (9)

Text

Public Service Electric and Gas Company Steven E. Miltenberger Public Service Electric and Gas Company P.O. Box 236, Hancocks Bridge, NJ 08038 609-339-1100 Vice President and Chief Nuclear Officer NLR-N91062 !

APR 1 ;j 1W1 United States Nuclear Regulatory Commission Document Control Desk Washington, DC 20555 Gentlemen:

GUARANTEED RETROSPECTIVE PREMIUMS FOLLOWING NUCLEAR ACCIDENT SALEM AND HOPE CREEK GENERATING STATIONS DOCKET NOS. 50-272, 50-311 AND 50-354 FACILITY OPERATING LICENSE NOS. DPR-70, 75 AND NPF-57 Pursuant to the 1975 Amendments to the Price-Anderson Act (Public Law 94-197), the owners of Salem Generating Station, Units Nos. 1 and 2, and Hope Creek Generating Station, Unit No. 1, submit the following statements and supporting documents to satisfy guarantee requirements as provided under Alternative No. 5:

1. 1990 Stockholders' Annual Report of each owner.

2. Summary of Owners' 1991 Projected Internal Cash Flow Statements supported by individual certified Internal Cash Flow Statements s_howing 1990 Actual and 1991 Projected with Explanation of Significant Variations.

Similar documents will be filed by Philadelphia Electric Company for the owners of the Peach Bottom Atomic Power Station, Unit Nos. 2 and 3.

Sincerely, Enclosures

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PDR ADOCK 05000272 MOOLf-I PDR

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Document Control Desk

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2 NLR-N91062 .....

c Mr. J. c. Stone Licensing Project Manager - Salem Mr. Stephen Dembek Project Manager - Hope Creek Mr. T. Johnson Senior Resident Inspector Mr. T. Martin, Administrator Region I Mr. Kent Tosch, Chief New Jersey Department-of Environmental Protection Division of Environmental Quality Bureau of Nuclear Engineering CN 415 Trenton, NJ 08625 Mr. R. Wood, Financial Analyst Off ice of State Programs PSE&G Co-Owners

JOINT OWNERSHIP OF NUCLEAR GENERATING STATIONS (SALEM AND HOPE CREEK)

Projected Internal Cash Flow Statement For the Year 1991 (Thousands of Dollars)

Public Service Philadelphia Atlantic City Delmarva Electric and Electric Electric Power & Light Gas Company Company Company Company Total Net Income $505,491 $469,772 $ 97,022 $78,284 $1,150,569 Less Dividends Paid 500.262 327,852 83,464 85,397 996,975 Retained in Business 5.229 141. 920 13, 558 (7, 113) 153,594 e

Adjustments:

Unrecovered Purchased Power Costs (12,938) (12,938)

Deferred Revenue 123,791 123,791 Levelized Energy Clause - Net 1,388 1,388 Depreciation 477'126 386,738 68,934 86,304 1,019,102 Early Retirement Plan (36,000) (36,000)

Amortization and Other 75,453 (1,829) (21,125) 2,436 54,935 Deferred Income Taxes and Investment Tax Credits 49,966 102,181 9,927 4,251 166,325 SFAS 92 Effect (7,055) (7,055)

SFAS 90 Effect (6,788) (6,788)

Nuclear Fuel-Limerick 74,998 74,998 Allowance for Funds Used

-

During Construction (36,658) (7,739) (5,735) (9,308) (59,440)

Total Adjustments $559,099 $635,085 $ 40,451 $83,683 $1, 318 318 I

Internal Cash Flow ~2.~~J.32~ ~ZZZ_J_222. ~=2.~_J_QQ2_ ~z~_J_510 ~!_!_47!_!_~.!~

Average Quarterly Cash Flow ~!~!J.2~~ ~!2~_!_~~! §._!~J.,202 ~!2-b!~l ~==l~Zb2Z~

Nuclear Generating Stations Percentage of Ownership Salem 1 42.59% 42.59% 7.41% 7.41% 100%

Salem 2 42.59% 42.59% 7.41% 7.41% 100%

Hope Creek 1 95.00% 5.00% 100%

Maximum Contingent Liability (Severally and not Jointly) ~-!~J.2!~ ~=-!!b2!~ §__=!J..2~~ ~=-.!~~~~ ~--~2.LQQQ

PUBLIC SERVICE ELECTRIC AND GAS COMPANY (SALEM AND HOPE CREEK)

Projected Internal Cash Flow Statement For Year 1991 - Compared to 1990 Actual (Thousands of Dollars)

Actual-1990 Projected Explanation of Significant Variations Net Income $537 619 $505 491 Less Dividends Paid 532 512 500 262 Retained in Business $ 5 107 $ 5 229 Adjustments:

Depreciation $474 431 $477 126 Amortization of Nuclear Fuel 89 031 75 453 Anticipated additional outages Deferred Income Taxes and Investment Tax Credits 54 483 49 966 Primarily Deferred Taxes on Cost of Removal and Amortization of Rate Differential Statement of Financial Accounting (7 716) (6 788) Accretion to Income of the discount related Standards No. 90 - Regulated to Hope Creek and various abandonments Enterprises - Accounting for Abandonments and Disallowance of Plant Costs (SFAS 90)

Allowance for Funds Used During Construction (34 220) (36 658) Increased construction expenditures Total Adjustments $576 009 $559 099 Internal Cash Flow $581 116 $564 328 Average Quarterly Cash Flow ~!~2=~Z2, ~1~!=2~~

As indicated by this statement, the Average Quarterly Cash Flow covers the maximum contingent liability of Public Service Electric and Gas Company, as defined by the Nuclear Regulatory Commission, which amounts to $18,018,000 as shown on the ary Sheet "Projected Internal Cash Flow Statement". The presentation of this statement is ith tat of prior years' filings.

ELECTR~ID )els COMPANY BY -----~-JJ-,;----r-1d12e_ ___u.,( __

PUBLIC SERVICE ELECTRIC AND GAS COMPANY (PEACH BOTTOM)

Projected Internal Cash Flow Statement For Year 1991 - Compared to 1990 Actual (Thousands of Dollars)

Actual-1990 Projected Explanation of Significant Variations Net Income $537 619 $505 491 Less Dividends Paid 532 512 500 262 Retained in Business $ 5 107 $ 5 229 Adjustments:

Depreciation $474 431 $477 126 Amortization of Nuclear Fuel 89 031 75 453 Anticipated additional outages Deferred Income Taxes and Investment Tax Credits 54 483 49 966 Primarily Deferred Taxes on Cost of Removal and Amortization of Rate Differential Statement of Financial Accounting (7 716) (6 788) Accretion to Income of the discount related Standards No. 90 - Regulated to Hope Creek and various abandonments Enterprises - Accounting for Abandonments and Disallowance of Plant Costs (SFAS 90)

Allowance for Funds Used During Construction (34 220) (36 658) Increased construction expenditures Total Adjustments $576 009 $559 099 Internal Cash Flow $581 116 $564 328 Average Quarterly Cash Flow ~!~2,=~Z2 ~!~!=2~~

As indicated by this statement, the Average Quarterly Cash Flow covers the maximum contingent liability of Public Service Electric and Gas Company, as defined by the Nuclear Regulatory Commission, which amounts to $8,498,000 as shown on the Summary Sheet "Projected Internal Cash Flow Statement". The presentation of this statement is consistent w* h that of prior years' filings.

DATE ----'-Ifi_,1__,_/Cl__,___ _

PHILADELPHIA ELECTRIC COMPANY SYSTEM Projected Internal Cash Flow Statement For Year 1991 - Compared to 1990 Actual (Thousands of Dollars)

Actual - 1990 Projected - 1991 Explanation of Significant Variations(1)

Net Income $214,190 $469,772 Less: Dividends Paid 398.192 327,852 Retained in Business $(184.002) $141.920 Adjustments:

Deferred Revenue $ 57,345 $ 123,791 Increase in cash associated with Limerick rate increase phase-in plans.

Early Retirement Plan 211,380 (36,000) Costs (net of cash payments) reflected in 1990.

Cumulative Effect of Estimated cash payments in 1991.

Accounting Change $(108,413) Reflects adoption of unbilled revenue.

Adjustment to Limerick Plant Costs 263,860 Write-off resulting from Penn. Public Utility Comm. disallowances in Limerick No. 2 rate case.

Depreciation 341,529 386,738 Full year of Limerick No. 2 in service.

Deferred Income Taxes and Investment Tax Credits (52,221) 102,181 Decrease in 1990 primarily due to aforementioned write-offs. Increase in 1991 due to additional Allowance for Other Funds phase-in revenue and elimination of 1990 write-offs.

Used During Construction 23,086 (7,739) Construction completed on Limerick No. 2.

Nuclear Fuel - Limerick 99,450 74,998 Limerick No. 2 in service.

Statement of Financial Accounting Standards No. 92 (15,325) (7,055)

Amortization and Other 44,603 (1,829) Change in Deferred Fuel Expense.

Total Adjustments $865,294 $635,085 Internal Cash Flow $681.292 $777.005 Average Quarterly Cash Flow * $170.323 $194.251 (1) Significant variation equals $1 Omillion and 10%.

The Company has sufficient cash flow to ensure that its respective premiums would be vailable for payment.

Certified by: /?

T. P. Hill, Jr.

resident and Controlle

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ATLANTIC CITY ELECTRIC COMPANY

!

PROJECTED INTERNAL CASH FLOW STATEMENT FOR YEAR 1991 - COMPARED TO 1990 ACTUAL (Thousands of Dollars)

Actual 1990 Projected 1991 Explanation of Significant Varlatlon.s Net Income $ 80,176 $ 97,022 Projected includes an increase in KWH sales offset in part by an increase in net energy and other purchased power costs.

Less Dividends 77,884 83,464 Projected reflects effects of a new issuance of preferred stock.

Retained in Busine~s 2,292 13 ,.558 Major Adjustments:

Depreciation and Amortization 62,141 68,934 Levelized Energy Clause - Net 20, 136 1,388 Projected reversal of previously accrued overrecovered fuel costs.

eDeferred Income Taxes and Investment Tax Credits 4,360 9,927 Change associated with reversal of overrecovered fuel costs.

Un~ecovered Purchased Power Costs (21,840) (12 ,938) Projected is lower due to turnaround of costs previously deferred.

• Allowance for Funds Used During Construction (3,953) (5,735) .l Other 11,822 (21,125) Primarily net changes in working capital items.

" Adjustments Total 72, 666 40,451  ;

$ 74,958 $ 54,009 ..i Average Quarterly Cash Flow $ 18,740 $ 13,502 N~ear Generating Station Percentage Ownership Salem Unit #1 7.41%

Salem:unit 112 7.41%

Hope Creek Ill 5.00%

Maximum Contingent Liability (Severally and not Jointly) $ 1,982 As indicated by this statement, the Average Quarterly Cash Flow fully covers the maximum contingent liability of Atlantic City Electric Company which amounts to $1,982,000 as shown above.

COMPANY

-** By Date ,2- - J.-,S-- 9 /

L. E - Contro

DELMARVA POWER & LIGHT COMPANY PROJECTED INTERNAL CASH FLOW STATEMENT FOR YEAR 1991 COMPARED TO 1990 ACTUAL

($000's)

Actual - 1990 Projected - 1991 Explanation of Significant Variations Net Income $ 37,311 $ 78,284 Note 1 Less Dividends Paid 81.905 85,397 Note 2 Retained in Business (44.594} (7.113}

Adjustments:

Write-off of Joint Venture Investments 62,534 0 Equity in Net Loss of Joint Ventures 12' 772 0 Depreciation 82,439 86,304 Amortization and Other 322 2,436 Deferred Income Taxes and Investment Tax Credits (3,327) 4,251 Note 3 Allowance for Funds Used During Construction (5,844) (9,308} Note 4 Total Adjustments 148.896 83,683 Internal Cash Flow $104 .302 $ 76,570 Average Quarterly Cash Flow $ 26,076 $ 19,143 The Company has sufficient cash flow to insure that its respective premiums would be available for payment.

Date February 25. 1990

Delmarva Power &Light Com~y Variance Explanations Note 1 1990 net income was reduced by $42.5 million due to a write-off of subsidiary joint venture investments. After excluding the effect of this write-off, net income is expected to decrease due to higher expected operation, maintenance, and depreciation expenses.

Note 2 During 1991, additional common shares are projected to be issued through a public offering and the Company's dividend reinvestment and common stock purchase plan.

Note 3 1990 deferred taxes were reduced by $20.0 million due to the write-off of subsidiary joint venture investments. Excluding the effect of the* 1990 subsidiary write-off, deferred taxes and ITC are expected to decrease due to lower tax closings, higher deferred fuel expense, and lower tax depreciation from subsidiary operations in 1991.

Note 4 AFUDC is expected to increase from 1990 to 1991 due to higher construction work-in-progress balances.