ML18107A184

Forwards PSEG Annual Rept for 1998, & PECO Annual Rept for 1998. Stockholders Annual Rept of Each Owner & Cash Flow Statements Showing 1998 Actual & 1999 Projected Cash Flow with Explanation Encl

ML18107A184
Person / Time
Site:	Salem, Hope Creek
Issue date:	04/14/1999
From:	Dawn Powell Public Service Enterprise Group
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML18107A186	List: ML18107A184 ML18107A187 ML18107A188
References
LR-N99168, NUDOCS 9904210114
Download: ML18107A184 (7)

Text

e Public Service Electric and Gas Company P.O. Box 236 Hancocks Bridge, New Jersey 08038-0236 Nuclear Business Unit APR 141999 LR-N99168 United States Nuclear Regulatory Commission Document Control Desk Washington, DC 20555 GUARANTEED RETROSPECTIVE PREMIUMS FOLLOWING A NUCLEAR ACCIDENT SALEM AND HOPE CREEK GENERATING STATIONS DOCKET NOS. 50-272, 50-311 & 50-354 FACILITY OPERA TING LICENSE NOS. DPR-70, -75 AND NPF-57 Gentlemen:

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 the Hope Creek Generating Station submit the following statements and supporting documents to satisfy guarantee requirements as provided under 1 OCFR140.21 (e): *t. 1998 Stockholders' Annual Report of each owner. 2. Individual certified Internal Cash Flow Statements showing 1998 Actual and 1999 Projected with Explanation of Significant Variations.

// Should you have any questions regarding this request, we will be pleased to discuss r; them with you. Enclosures (8) ,, I.I Sincerely, David R. Powell Director -Licensing/Regulation

& Fuels _....__ ----*------*

--.... ,,. .. -. -9904210114 990414 '1 PDR ADOCK 05000272 .J PDR The power is in your hands. 95-2168 REV. 6/94 ------------------------

Document Control Desk LR-N99168 C All w/o 1998 Stockholders' Annual Reports Mr. H. Miller, Administrator

-Region I U. S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 Mr. R. Ennis Licensing Project Manager -Hope Creek U. S. Nuclear Regulatory Commission One White Flint North Mail Stop 14E21 11555 Rockville Pike Rockville, MD 20852 Mr. P. Milano Licensing Project Manager -Salem U.S. Nuclear Regulatory Commission One White Flint North Mail Stop 14E21 11555 Rockville Pike Rockville, MD 20852 USNRC Resident Inspector Office (X24) Mr. K. Tosch, Manager IV Bureau of Nuclear Engineering P. 0. Box 415 Trenton, NJ 08625 Mr. Ira Dinitz U. S. Nuclear Regulatory Commission Mail Stop 11F10 Washington, DC 20555

• APR 141999

-*, "°*-. J ---s

• Document Control Desk LR-N99168 JPP BC All w/o 1998 Stockholder's Annual Reports Senior Vice President

-Nuclear Operations (X04) Senior Vice President

-Nuclear Engineering (N 19) General Manager -Hope Creek Operations (H07) General Manager -Salem Operations (SOS) Director -QA/NT/EP (X01)

• Director -Licensing/Regulation and Fuels (N21) Manager -Financial Control & Co-Owner Affairs (N07) Program Manager -Nuclear Review Board (N38) J. Keenan, Esq. (N21) Leslie Sorkin (Newark, T9C) NBU RM (N64) Microfilm Copy File Nos. 1.2.1, 2.9 Ms. Robbie Kankus Nuclear Strategic Support PECO Energy Company, 63-C-5 965 Chesterbrook Blvd. Wayne, PA 19087-5691 Mr. Carter Kresge External Operations DP&UAE P.O. Box 6066 Newark, DE 19714-6066 Net Income Less: Dividends Paid Retained in Business Adjustments:

Depreciation and Amortization Amortization of Nuclear Fuel Deferred Income Taxes and Investment Tax Credits Statement of Financial Accounting Standards No. 90 -Regulated Enterprises

-Accounting for Abandonments and Disallowance of Plant Costs (SFAS 90) Allowance for Funds Used During Construction Total Adjustments Internal Cash Flow Average Quarterly Cash Flow $ PUBLIC SERVICE EL C AND GAS COMPANY (Salem e Creek) Projected Intern Flow Statement For Year 1999 Compared to 1998 Actual (Millions of Dollars) 1998 &tu.al 604 513 91 658 94 14 (2) (12) 752 $ 1999 Projected 514

• 486 28 643 63 (26) (2) (13) 665 Explanation of Significant Variations Primarily due to higher operation and maintenance expenses expected in 1999. These increased expenses are due to planned nuclear refueling outages in 1999, increased information technology expenses related to Energy Master Plan implementation and Year 2000 remediation, and higher OPEB costs. Lower funding requirements of parent related to lower shares of common stock outstanding due to parent's common stock repurchases in 1998. Less nuclear fuel will be consumed in 1999 due to scheduled nuclear refueling outages in 1999. Primarily due to a decrease in the tax deductible pension costs in 1999 as compared to 1998. $ 843 $ 693 === $==2=11==

$ 173

• 1999 Projected Net Income does not include any potential writedown related to the application of SFAS 121 (Accounting for the Impairment of Long-Lived Assets) due to deregulation.

Any such writedown would not have any impact on the operational cash flow of the Company. As indicated by this statement, the Average Quarterly Cash Flow covers the maximum contingent liability, which amounts to $18.0 million annually, of Public Service Electric and Gas Company as defined under the Price Anderson Act. The presentation of this statement is consistent with that of prior years' filings. PUBLIC SERVICE ELECTRIC AND GAS COMPANY Patricia A. Rado Vice President and Controller

• Net Income Common & Preferred Dividends Paid Retained in Business --Adjustments:

Depreciation Deferred Income Taxes lnvest1nent Tax Credits Allowance for Funds Used IDuring Construction Gain on Sale of Assets I Delmarva Power & Light clnv Projected Internal Cash Flow Statement For Year 1999 Compared to 1998 Actual ($000) 1999 Projected Actual $127,841 $112,410 (101,560)

(99,212) 26,281 13,198 127,727 131,945 5,792 5,796 (2,488) (2,560) (5,031) (4, 153) 0 (1,549) Other non-cash expense (income) (53,868) (42,027) Total Adjustments 72,132 87,452 Internal Cash Flow $98,413 $100,650 Average Quarterly Cash Flow $24,603 $25,163

• Explanation of Significant Variances 1998 weather was milder than normal Cash received from 1998 sale is reflected as an investing activity Primarily reflects changes in working capital components The Compa:iy has sufficient cash flow to ensure that its respective premiums would be available for payment.

JameS' P. Lavin c'amttroller and Chie'i Accounting Officer Date April 6, 1999 I

• 1999 Projected Net Income $ 82,871 Common & Preferred Dividends Paid (83,340) Retained in Business (469) Adjustments:

Depreciation 118, 192 Levelized Energy Clause -(net) 18,594 Deferred Income Taxes (5,404) Investment Tax Credits (2,536) Unrecovered State Excise Tax 9,560 Allowance for Funds Used During Construction (2,220) lmpaimient Loss on Assets Held for Sale -Other Non-Cash Expense (Income) (20,609) Total Adjustments 115,577 Internal Cash Flow $ 115, 108 Average Quarterly Cash Flow $ 28,777 $ $ $ Atlantic City Electric Company Projected Internal Cash Flow Statement For the Year 1999 Compared to 1998 Actual ($000) Actual Expianation of Significant Variances 30,276 1997 actual reduced by one-time merger expenses.

(84,886) (54,610) 117,285 43,001 Projected reflects decreased rates for the recover} of deferred costs. * (37,915) Reflects lesser recovery of deferred LEC costs as noted above and actual reflects merger related credits. (1,901) 9,560 (1,550) 18,000 One-time item for merger-related projected loss on sale of assets. 65,861 Primarily reflects changes in working capital components

& actual reflects non-cash merger charges. 212,341 157,731 39,433 y has cash flow to ensure that its respective premiums would be available for payment. \ \. L Date April 6, 1999

• P

• avin troll and Chief Accounting Officer Net Income Less: Dividends Paid Retention in Business Adjustments:

Depreciation Deferred Income Taxes and Investment Tax Credits Allowance for Other Funds Used During Construction Nuclear Fuel -Limerick Deferred Fuel Expense . Total Adjustments Internal Cash Flow Average Quarterly Cash Flow

• PECO ENERGY COMPANY Projected Internal Cash Flow Statement For Year 1999 Compared to 1998 Actual (Thousands of Dollars) Actual 1998 532,378 236,307 296,071 620,957 Projected 1999 655,919 237,793 418, 126 189,853 Explanation of Significant Variations (iJ 1998 net income before extraordinarily item loss of $19,654 Reflects impact of 1999 write-off which includes $475M of electric generation assets reclassified as regulaatory asset to be amortized.

(115,640)

(24,000) Increased deferred generation charges recoverable.

(2,024) (1,800) 80,645 78,933 7,909 3,277 591,847 246,263 887,918 664,389 221,980 166,097 (1) variation equals $10 million and 10 percent. The Company has sufficient cash flow to ensure that its respective premiums would be available for payment. Certified by: Date: iEfl1 Richard G. White Vice President, Corporate Planning c:\data\Corporate Planning\intemal cash flow statement.xis

• 04/08/1999