ML18094B388

Forwards Annual Rept for 1989 & Summary of Owners 1990 Projected Internal Cash Flow Statements

ML18094B388
Person / Time
Site:	Salem, Hope Creek
Issue date:	04/04/1990
From:	MILTENBERGER S Public Service Enterprise Group
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML18094B389	List: ML18094B388 ML18094B390 ML18094B391 ML18094B392 ML18094B393
References
NLR-N90046, NUDOCS 9004160149
Download: ML18094B388 (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 APR o 4 1990 NLR-N90046 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, Unit 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. 1989 Stockholders' Annual Report of each owner. 2. Summary of Owners' 1990 Projected Internal Cash Flow Statements supported by individual certified Internal Cash Flow Statements showing 1989 Actual and 1990 Projected with Explanation of Significant Variations.

Previous submittals of these reports have been historically on or by March 15. As discussed with J. c. Stone NRC Project Manager, Public Service Electric and Gas will re-establish the annual date of providing this submittal as April 15. This realignment will allow needed additional time to obtain and review the reports from the Station's co-owners who print their annual reports very close to the submittal date. Sincerely, Enclosures Document Control Desk NLR-N90046 C Mr. J. C. Stone 2 Licensing Project Manager -Salem Mr. c. Y. Shiraki Licensing Project Manager -Hope Creek Mr. T. Johnson Senior Resident Inspector Mr. w. T. Russell, 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 APR o 4 1990

'. JOINT OWNERSHIP OF NUCLEAR GENERATING STATIONS (SALEM AND HOPE CREEK) Projected Internal Cash Flow Statement For the Year 1990 (Thousands of Dollars) Public Service Philadelphia Atlantic City Delmarva Electric and Electric Electric Power & Light Gas Company Company Company Company Total Net Income $ 545 691 $ 575 571 $ 93 091 $ 87 779 $1 302 132 Less Dividends Paid 488 581 565 136 74 919 81 890 1 210 526 e Retained in Business $ 57 110 10 435 $ 18 172 $ 5 889 91 606 Adjustments:

Unrecovered Purchased Power Costs $ $ $(27 964) $ $ (27 964) Def erred Revenue (138 378) (138 378) Levelized Energy Clause -Net 10 630 10 630 Depreciation 508 533 359 801 63 661 84 099 1 016 094 Amortization and Other 55 354 42 241 5 172 7 006 109 773 Def erred Income Taxes and Investment Tax Credits (6 068) 172 176 8 885 22 137 197 130 SFAS 92 Effect (7 540) (7 540) SFAS 90 Effect (7 717) (7 717) Nuclear Fuel -Limerick 140 225 140 225 Allowance for Funds Used During Construction (30 1572 27 964 (5 776) (6 438) (14 4072 Total Adjustments

$ 519 945 $ 596 489 $ 54 608 $106 804 $1 277 846 e Internal Cash Flow $ 577 055 606 924 $ 72 780 693 369 452 Average Quarterly Cash Flow $ 144 264 151 731 $ 18 195 $ 28 173 342 363 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) $ 18 018 8 518 $ 1 982 $ 1 482 30 000 Net Income Less Dividends Paid Retained in Business Adjustments:

Depreciation and Nuclear Fuel Burnup Amortization of Property Losses Def erred Income Taxes and Investment Tax Credits Statement of Financial Accounting Standards No. 90 -Regulated Enterprises

-Accounting for Abandonments and Disallowances of Plant Costs (SFAS 90) Allowance for Funds Used During Construction Total Adjustments Internal Cash Flow Average Quarterly Cash Flow PUBLIC SERVICE ELECTRIC AND GAS COMPANY (SALEM AND HOPE CREEK) Projected Internal Cash Flow Statement For Year 1990 -Compared to 1989 Actual (Thousands of Dollars) Actual-1989 Projected-1990 Explanation of Significant Variations

$ 544 374 $ 545 691 554 010 488 581 Q (9 636} $ 57 llO $ 475 273 $ 508 533 Full year's effect of Peach Bottom 2 and 3 returning to service 57 775 55 354 ll 359 (6 068) Principally due to an increase in recovered fuel costs (8 670) (7 717) Accretion to income of the discount related to Hope Creek and various abandonments (29 9962 (30 157} Decreased construction expenditures Q 505 741 $ 519 945 Q 496 105 $ 577 055 Q 124 026 $ 144 264 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 Summary Sheet "Projected Internal Cash Flow Statement." The presentation of this statement is L-:

DATE March 14, 1990 e e Net Income less: Dividends Paid Retained in Business Adjustments:

Deferred Revenue Depreciation Deferred Income Taxes and Investment Tax Credits Allowance for Other Funds Used During Construction Nuclear Fuel -Limerick Statement of Financial Accounting Standards No. 92 Amortization and Other Total Adjustments Internal Cash Flow Average Quarterly Cash Flow PHILADELPHIA ELECTRIC COMPANY SYSTEM Projected Internal Cash Flow Statement For Year 1990 -Compared to 1989 Actual (Thousands of Dollars) Projected

-1990 $575,571 565,136 $ 10,435 $(138,378) 359,801 172,176 27,964 140,225 (7,540) . 42,241 $596,489 8606;924 $151,731 Actual -.1989 $590,407 555,998 s 34 ,409 $ 48,057 267,249 12'5,295 (150,316) 71,059 (11,813) 2,992 $352,523 8386,932 s 96,733 Explanation of Significant Variations (1) First year of Limerick No. 2 phase-in plan net of Limerick No. 1 phase-in plan. Limerick No. 2 in service. e Increase due to Deferred Revenue and Liberalized Depreciation.

Construction completed on Limerick No. 2. Limerick No. 2 in service. Change in Deferred Fuel Expense * (1) Significant variation equals $10 million and 10%. The Company has sufficient cash flow to ensure that its respective preiniums would be available for payment. Controller Net Income Less Dividends Retained in Business Major Adjustments:

Depreciation and Amortization Levelized Energy Clause -Net Deferred.

Income Taxes and Investment Tax Credits Unrecovered Purchased Power Costs Allowance for Funds Used During Construction Other Total Adjustments Average Quarterly Cash Flow Nuclear Generating Station Percentage Ownership Salem Unit Ill Salem Unit i2 Creek i1 Maximum Contingent Liability

<Severally and not Jointly> Actual 1989 $ 91,743 71, 160 20,583 58,485 8,560 4,275 (19,660) (2,805) <10,643) 38,212 $ 58,795 $ 14,699 ATLANTIC CITY ELECTRIC COMPANY PROJECTED INTERNAL CASH FLOW STATEMENT FOR YEAR 1990 -COMPARED TO 1989 ACTUAL (Thousands of Dollars) Projected 1990 $ $ $ 93,091 74,919 18,172 63,661 10,630 8,885 (27,964) C5,776l 54,608 72,780 18,195 7 .4U 7 .41% 5.00% $ 1,982 Explanation of Significant Variations Projected includes the effects of liberalized depreciation and additional unrecovered purchased power costs. Projected includes the expected rate treatment to be accorded to an additional purchased capacity and energy agreement.

Primarily net changes in working capital items. As indicated by this statement, the Average Quarterly Cash Flow fully covers the maximum contingent liability of Atlantic City Electric Company amounts to $1,982,000 as shown above. ATLANTIC CITY ELECTRIC COMPANY Date

_9_() __ * *

• DELMARVA POWER & LIGHT COMPANY PROJECTED INTERNAL CASH FLOW STATEMENT FOR YEAR 1990 COMPARED TO 1989 ACTUAL Actual -1989 $ 91,308 Projected

-1990 $ 87,779 81,890 Explanation of Significant Variations Net Income Less Dividends Paid Retained in Business Adjustments:

Depreciation Amortization and Other Deferred Income Taxes and Investment Tax Credits Allowance for Funds Used During Construction Total Adjustments Internal Cash Flow Average Quarterly Cash Flow 76, 774 14,534 76,327 8, 152 34, 138 (9,551) 109!066 $123 !600* $ 30,900 5,889 84,099 7,006 22,137 (6,438) 106,804 $112,693

$ 28,173 The Company has sufficient cash flow to insure that its respective premiums would be available for payment. *Per annual report $102,467.

The difference of $21,133 is due to a different format that was used in annual report, which reflected a $26,954 increase in working capital items, 1 of capitalized interest which was reported as an investing activity use o ash. Date February 23 2 1990 Note 1 Note 2 Note 3 Note 4 e Note 1: Note 2: Note 3: Note 4: notes Explanations of Significant Variations Net income is expected to decrease due to higher*expected operating,maintenance and depreciation expenses offset partially by moderate sa 1 es growth.

• Delmarva increased its annualized common stock dividend rate from $1.50 to $1.54 in December of 1989. Additional common shares are projected to be issued through a fourth quarter stock issuance and through the Company's dividend reinvestment and common stock purchase plans during 1990. Deferred taxes and ITC are expected to decrease due to lower expected tax closings and lower tax depreciation from subsidiary operations in 1990.

• In 1989, AFUDC included capitalized interest related to subsidiary activities.

In 1990, AFUDC includes only minimal amounts of subsidiary capitalized interest.

JOINT OWNERSHIP OF NUCLEAR GENERATING STATIONS (SALEM AND HOPE CREEK) ( Projected Internal Cash Flow Statement For the Year 1990 (Thousands of Dollars) Public Service Philadelphia Atlantic City Delmarva Electric and Electric Electric Power & Light Gas Company Company Company Company Total Net Income $ 545 691 $ 575 571 $ 93 091 $ 87 779 $1 302 132 Less Dividends Paid 488 581 565 136 74 919 81 890 1 210 526 e Retained in Business $ 57 llO 10 435 $ 18 172 $ 5 889 $ 91 606 Adjustments:

Unrecovered Purchased Power Costs $ $ $(27 964) $ $ (27 964) Deferred Revenue (138 378) (138 378) Levelized Energy Clause -Net 10 630 10 630 Depreciation 508 533 359 801 63 661 84 099 1 016 094 Amortization and Other 55 354 42 241 5 172 7 006 109 773 Deferred Income Taxes and Investment Tax Credits (6 068) 172 176 8 885 22 137 197 130 SFAS 92 Effect (7 540) (7 540) SFAS 90 Effect (7 717) (7 717) Nuclear Fuel -Limerick 140 225 140 225 Allowance for Funds Used During Construction (30 157) 27 964 (5 776) (6 438) (14 407)-Total Adjustments

$ 519 945 596 489 $ 54 608 804 277 846 Internal Cash Flow $ 577 055 606 924 $ 72 780 693 369 452 Average Quarterly Cash Flow $ 144 264 151 731 $ 18 195 $ 28 173 $ 342 363 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) $ 18 018 8 518 $ 1 982 $ 1 482 $ 30 000