ML19323C537

Addl Financial Info Re Amend 40,Suppl 5 to Request Partial Transfer of Cps.Forwards Annual Financial Rept 1979.

ML19323C537
Person / Time
Site:	Seabrook
Issue date:	05/13/1980
From:	Crabtree R, Howe R CENTRAL MAINE POWER CO.
To:
Shared Package
ML19323C536	List: ML19323C535 ML19323C537 ML19323C538
References
NUDOCS 8005160253
Download: ML19323C537 (1)

Text

8 00516 025.$

O Seabrook Station Units 1 and 2: Request for Financial Infor=ation in addition to infor=ation submitted to Nuclear Regulatory Commission with letters of April 23, 1979 and June I?, 1979 The foregoing answers were either prepared or reviewed by the following persons on behalf of Central Maine Power Company:

1. Robert S. Howe, Comptroller

2. Richard A. Crabtree, Treasurer The above named persons swear that they either prepareddirectlyand/orverifiedtheanswerstothe foregoing quertions.

Q . S .%w Robert S. Howe, Comptroller C Maine Power Company e il

/ C.

Richard A. Crabtree, Treasurer Central Maine Power Company Sworn to and subscribed before me this 13th day of hay 1980.

(3 1D)

G won

~ Notary Public My Commission Expires September 16, 1984

Central Maine Power Cocoanv Item 2(A)

Question:. Complete the attached schedule entitled, " Sources of Funds for System-Wide Construction Expenditures During the Per-iod of Construction of Subject Nuclear Power Plant,"

through the years of earliest estimated completion of Unit Nos. 1 and 2. Indicate the assumptions upon which the

" Sources of Funds" statement is based. These assumptions include, but are not necessarily lisited to: (a) rate of 4 return on average common stock equity; (b) preferred stock dividend rate; (c) long-term and short-term debt interest rates; (d) market / book ratio with respect to the projected co= mon stock offerings; (e) common stock dividend payout ratio; (f) target and year by year capital structure; (g) resultant SEC and indenture interest coverages during -

i each year of the period of construction; and (h) annual

growth rate in kWh sales and price per kWh. Provide a brief explanation of the basis for each assumption.

Resuonse: (See attached schedules.)

~

o i

CENTRAL MAINE POWER COMPANY General and Financial Information Seabrook Units No. 1 and No. .~.

(1980-1985)

, Question 2: Assumptions underlying Sources and Uses of Funds Statement.

Response: (a) Earned return on average common equity: 10%; 1980 Average 15%

thereafter (b) Preferred stock dividend rate: 10.5%-13.5%

(c) Long-term debt interest rate:

~

11.0%-14.0%

1 Short-term debt interest rate: 9.0%-14.0%

(d) Market / book ratio with respect to projected common stock offerings: 90%; 1980-81(t) 100% thereafter (e) Common stock dividend payout ratio: Dividend policy assumes a com-pound annual growth rate of approx. 4.70%

(f) Target capital structure: Debt 48%-50%

Pref.12%-14%

Comm.37%-39%

(g) Resultant SEC and indenture interest

, averages over the period of construction:

SEC First and General Year Coverage Indenture Coverage 1980 2.25 3.25 1981 3.00 4.00 1982 3.00 4.00 1983 3.00 4.00 1984 3.25 4.00 1985 3.25 4.00 l

l Applicant: Central Maine Power Company Nuclear Plant: Seabrook Units 1 and 2 PRO FORMA SOURCES OF FUNDS FOR SYSTES WIDE CONSTRUCTION

+ EXPENDITURES AND CAPITAL SIRUCTURE DURING PERIOD OF CONSTRUCTION OF SUBJEC' NUCLEAR POWER PLANT (Millions o" Dollars)

_ Construction Years of Sublect Nuclear Power Plant 1980 1981 1982 1983 1984 1985 I

EXTERNAI, FINANCING Common stock ' S 34.4 S 30.4 S 4.6 $ 36.7 $ 5.4 S 4.6 Preferred stock 24.7 -

24.6 -- 24.6 --

1.ong-term debt 16.5 E 69.3 YCI 69.3 WT Notes payable 3.1 8 _122) ~T!7) (75TT) 1.6 Contributions from parent-net Other funds (describe)

Total External Funds SO $377 $M $ 60.2 SM $ U INTERNALLY GENERATED CASII

~~ Net income $ 29.2 S 52.3 $ 56.7 $ 63.2 S 69.4 S 76.2 Less:

Preferred dividends (6.0) (7.9) (10.0) (10.3) (10 8) (12.6)

Common dividends (21.3) (26 7) ( ) (33 1) (3 ..) 39u 7)

Retained earnings 1 5,9 15 ,2

. 21 1 (NT.9 Deferred taxes TT 0 Investment tax credit-deferred N,0 , 8.4 , -

Depreciation and amortization 22.4 24.0 . TT!5 34.1 .

Change in working capital -- -- -- -- -- --

(73-Less: AFDC Total Internal Funds (10 0)

S 1 (17.4)

S 39.0 $ D.I) S(33.6 E) ( 30.4

$ TET)

( 3E*T5)

S Ti d ,4 Total Funds Sly Sly SIM SM Sly S IM CONSTRUCTION EXPENDITURES .

Nuclear power plants J S 51.6 $ 45.5 $ 30.1 $ 24.1 S 18.3 $ 11.1 Other 1112 3773 91.3 58.8 72.5 95.4 Total construction expenditures S 99.5 $112.8 $121.4 $ 82.9 $ 90.8 $ 106.5 Subject nuclear plant S 46.0 $ 39.1 $ 20.5 S 14.6 $ 8.7 $ .7 OTilER CAPITAL. REQUIREMElfrS Redemption of Maturing Bonds S -- S 5.9 $ -- S 8.6 S 20.0 $ 10.3 Acquisitionofgondsfor 1.1 1.0 2.4 2.4 6.7 6.7 Sinking Funds Miscellaneous Requirements (detail) -- -- -- -- -- --

- t' Total Capital Requirements $100.6 $119.7 $123.8 $ 93.9 $117.5 S 1231 5

Applicant: Central Maine Power Company Nuclear Plant: Seabrook Units 1 and 2 PRO FORMA SOURCES OF FUNDS FOR SYSTFJI-WIDE CONSTitUCTION EXPENDITURES AND CAPITAL STitUCTURE DUltING PERIOD OF CONSTRUCTION OF SUILIECT NUCLEAR POWElt PLANT (Millions of Dollars)

Construction Years of Subject Nuclear Power Plant 1980 1981 1982 1983 1984 1985 CAPITAL STRUCTURE (S) 5 Debt 6 $333.6 $377.8 $446.3 S461.4 S 486.3 $ 542.5 Preferred stock 94.3 93.9 117.2 115.4 138.6 136.8 .

Common Equity 249.1 297.6 318.S 375.6 402.5 431.8 Total $677.0 S769.3 $882.0 $952.4 $1027.4 S1111.1 CAPITAL STRUCTURE (%) 5 Debt 6 49.3% 49.1% 50.6% 48.4% 47.3% 48.8%

Preferred stock 13.9 12.2 13.3 12.1 13.5 12.3 Common Equity 36.8 38.7 36.1 39.5 39.2 38.9 Total 100% 100% 100% 100% 100% 100%.

• Excludes AFC

1. Not of Issuance Expense

2. Includes Dividend Reinvestment and Employee Stock Purchase Plans

3. Includes Nuclear Fuel

4. Includes Both Bonds and Preferred Stock

5. Year-end Including Current Maturities

6. Includes Short-Term Debt

(h) Annual growth rate in KWH sales and price per KWH:

Annual Price Year Growth Rate Per KWH 1980 4.7% .0524 1981 6.7 .0563 1982 3.9 .0589 1983 4.1 .0641 1984 3.1 .0679 l 1985 3.3 .0721

1. Defined as net proceeds to Company.

9 Central Maine Power Company

• Request for Additional Financial Information - April 2,1980 Seabrook Station Item 2 (c) Provide copies of the 1979 Report to Stockholders, copies of the prospectus for the Company's most recent security issue and copies of the most recent SEC Form 10-K. Pro-vide copies of the preliminary prospectus for any pending security issue. Continue to submit copies of the Annual Report for each year thereafter as required by 10 CFR 50.71(b).

Response: Attached are copies of the Company's 1979 Annual Report to Stockholders and the 1979 SEC Form 10-K.

With respect to the request for copies of the prospectus for the Company's most recent security issue this informa-tion was supplied in response to data requested on March 21, 1979. In response to the request for prelimi-nary prospectus there are none pending.

c.

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