ML20038C057
| ML20038C057 | |
| Person / Time | |
|---|---|
| Site: | Comanche Peak  |
| Issue date: | 11/20/1981 |
| From: | Nye E TEXAS UTILITIES ELECTRIC CO. (TU ELECTRIC) |
| To: | |
| Shared Package | |
| ML20038C053 | List: |
| References | |
| NUDOCS 8112090501 | |
| Download: ML20038C057 (22) | |
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DOCHETED UNITED STATES OF AMERICA USNRC NUCLEAR REGULATORY COMMISSION
'81 fl0V 23 Pl2:i2 BEFORE THE ATOMIC SAFETY AND LICENSING BOARD
'In.the Matter of
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TEXAS UTILITIES GENERATING ) Docket Nos. 50-445 COMPANY, g al. ) 50-446
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(Comanche Peak Steam Electric )
Station, Units 1 and 2) )
TESTIMONY OF ERLE A. NVE REGARDING THE FINANCIAL QUALIFICATIONS OF APPLICANTS T0__0PERATE COMANCHE PEAK Q. Please state your name, residence and educational and professional qualifications.
A. My name is Erle A. Nye. I am employed by Texas Utilities Company as Executive Vice President and I serve as Chief Finanical Officer. I reside in Dallas, Texas. A statement of my educational and professional qualifications is attached hereto as Attachment A.
Q. What is the subject of your testimony?
A. My testimony addresses the financial qualifications of Applicants to operate and decommission the Comanche Peak nuclear power reactors.
Q. Please state the respective interests in Comanche Peak of each owner.
A. The ownership interests in Comanche Peak are as follows: Texas Electric Service Company ("TESC0") 35-5/6%; Dallas Power & Light Company ("DP&L") 18-1/3%; Texas Power & Light Company ("TP&L")
31-1/2%; Brazos Electric Power Cooperative, Inc. ("Brazos") 3-4/5%;
Texas Municipal Power Agency ("TMPA") 6-1/5%; and Tex . Electric Cooperative of Texas, Inc. (" Tex-La") 4-1/3%. Th'us, TESCO, DP&L and 8112090501 811120'
{DRADOCK 05000445 PDR
TP&L collectively own 85-2/3% of Comanche Peak. Brazos, TMPA and Tex-La own the remaining 14-1/3%.
Q. Please describe the organization and structure of each owner.
A.. TESCO, DP&L and TP&L are the three operating subsidiaries of Texas Utilities Company, which is a utility holding company. TESCO, DP&L and TP&L are engaged principally in the generation, purchase, transmission, distribution and sale of electric energy to residential, commercial and industrial customers in 67 Texas Counties. These three operating companies provide electric service to over 4 million people in the State of Texas.
Brazos is a generation and transmission electric power cooperative owned by 19 rural electric distribution cooperatives in Texas. Brazos was incorporated in 1941 under Texas law. Tex-La is a generation and transmission electric power cooperative owned by 7 rural electric distribution cooperatives. It was incorporated in 1979 under Texas law. TMPA is a joint power agency created in 1975 under Texas law by the Texas cities of Bryan, Denton, Garland and Greenville.
Q. How are rates for sale of electricity detennined for the six owners?
A. TESCO, DP&L, TP&L, Brazos and Tex-La are subject to the ratemaking authority of the Public Utility Commission of Texas ("PUC"). The PUC has original jurisdiction over electric rates and services in unincorporated areas and exclusive appellate jurisdiction to review the rate and service orders and ordinances of municipalities. TMPA and each of the four cities which created TMPA exercise original jurisdication over the regulation of electric rates and service.
In order to set rates, the PUC utilizes a historical test year defined as the most recent 12 months for which utility operating
data is available. Adjustments for known and measureable changes are permitted. An original cost, end-of-test-year rate base is used
, in detemining an allowed return. Construction work in progress
("CWIP") may be included in rate base where necessary to the financial integrity of the utility. If CWIP is included in rate base, capitalizatius of an allowance for funds used during construction on the amount is discontinued. The practice of the PUC has been to allow full current recovery of the cost of fuel used in generating electricity.
Q. What laws and regulations govern the setting of rates for the five owners which are regulated by the Texas PUC?
A. Texas law and regulations applying to electric utilities, including rural electric cooperatives, provide that the PUC "shall fix its overall revenues at a level which will pemit [a] utility to recover its operating expenses together with a reasonable return on its invested capital ." A copy of Texas Public Utility Regulatory Act, 539, Article 1446c of Vernon's Annotated Texas Statutes is attached as Attachment B. Texas law also provides that the PUC shall set "just and reasonable rates" for utilities. Id. , at 538.
The Texas PUC has adopted substantive rule:: governing the setting of electric rates (copy attached as Attachment C). PUC Rule 052.02.03.031 provides for the rate base to be used in the establishment of rates, and PUC Rule 052.02.03.033 governs rate struc ture. This latter Rule provides that the PUC "shall fix the overall revenue requirements at a level which will permit [a]
utility to recover its allowable operating expenses together with a fair and reasonable return on its capital investment." Further, PUC Rule 052.02.03.032, governing cost of service and rate of return
4 provides that "the return shall be reasonably sufficient to assure confidence in the financial integrity of the utility and shall be
. adequate, under efficient and economical management, to maintain its credit and attract the capital necessary for the proper discharge of its public duties."
Q. Please describe the nature and amount of rate actions for the owners which are regulated by the Texas PUC since the PUC assumed rate jurisdiction.
A. For DP&L, TESCO and TP&L, the most efficient way to provide this information is through the Rate Developments table attached hereto as Attachment D. That table reflects for DP&L that the most recent i rates of return on rate base and common equity were 10.99% and 16.00%, respectively (test year ending June 30, 1980); for TESCO that the most recent rates of return on rate base and comon equity authorized were 11.312% and 15.50%, respectively (test year ending March 31,1980); for TP&L that the most recent rates of return on I
rate base and common equity authorized were 11.33% end 15.71%,
respectively (test year ending December 31,1980). Brazos and Tex-La have completed no rate case before the Texas PUC; Brazos l
l because its first rate case is pending, and Tex-La because it is a new entity. There is no reason to believe that the Texas PUC will treat Brazos and Tex-La materially different than it treats TESCO, DP&L and TP&L.
Q. Please provide additional financial statistics for Applicants.
A. Financial statistics for Texas Utilities Company, the holding company, and DP&L, TESCO and TP&L, the operating subsidiaries, are attached hereto as Attachment E. The bond ratings for the operating l
subsidiaries are AAA (Standard and Poor's) and Aaa (Moody's).
.Q. Please provide annual reports for each Applicant.
A, Current annual reports for five of the six Applicants are provided in the Comanche Peak Application, as amended. Because Tex-La is a new entity, no annual report for it is available.
- Q. From a ratemaking standpoint, is Comanche Peak expected to qualify for rate base treatment?
A. The sole purpose of the operation of Comanche Peak will be the production of electricity. The facility will be a productive asset, and therefore should qualify as property used and useful in public utility service. Accordingly, the cost of construction will be included in rate base and the owners subject to PUC regulation will recover through rates a return on investment. The same regulatory treatment will provide recovery of all fixed and variable operating and maintenance expenses.
Q. What are the estimated operating costs for Comanche Peak?
A. Estimates of the total annual costs of operating and maintenance expenses for both Comanche Peak units are set forth in Table 20.1 in the NRC Staff's Safety Evaluation Report, NUREG-0797 (July 1981).
However, because the estimates are separate for Unit 1 and Unit 2, they should be reflected as covering the period 1983-89 for Unit 1 and 1985-91 for Unit 2. As so modified, SER Table 20.1 is correct and accurate. For conservatism, the estimates are presented for plant factors of 50%, 60% and 70%. These estimates include all costs associated with the capital investment, taxes, and operation and maintenance (including nuclear fuel). Decommissioning costs are included as a component of depreciation expense. Because the schedule for commercial operation was revised recently to 1984 for
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Unit 1 and 1985 for Unit 2, we are in the process of updating these estimated operating costs in order to provide the most current informa tion.
"Q.- What are the estimated costs to decommission Comanche Peak?
A. For purposes of estimating decommissioning costs, Applicants have assumed that Comanche Peak will be decommissioned by immediate di smantl ement. Applicants have adopted the methodology and estimated costs presented in NUREG/CR-0130, the NRC reference analysis for PWR decommissioning. The maximum cost of decommissioning using the immediate dismantlement method was estimated in NUREG/CR-0130 to be $42 million (1978 dollars) per unit. Applicants therefore estimate the decommissioning costs for Comanche Peak to be approximately $55 million (1981 dollars) per unit, derived by escalating the estimate in NUREG/CR-0130 at 10% per year for three years.
Q. How will the financing of operation and decommissioning of Comanche Peak differ from the financing of construction?
A. While funds for construction must be raised through the sale of securities (debt and equity) and from internal cash sources, once a facility becomes part of electric rate base, further financings related to it are unnecessary. Operating and maintenar;ce costs, including depreciation and capital costs, are properly recovered through rates charged electric customers. Such treatment for Comanche Peak will be requested from the Texas PUC.
Q. Has the Texas PUC certified the construction and operation of Comanche Peak?
A. Yes. The Texas PDC has issued a certificate of convenience and necessity for Comanche Peak.
Q. In conclusion, how do Applicants intend to obtain the funds necessary to operate and decommission Comanche Peak?
fi. Applicants plan to recover the costs of operation and decommissioning through rates paid for sales of power and energy
'- generated by the Comanche Peak facility. TESCO, DP&L, TP&L Brazos and Tex-La will recover these costs through rates established by the Texas PUC. TMPA will recover these costs through rates established by it.
Q. In view of the foregoing, do you believe that Applicants have
- reasonable assurance of obtaining the funds necessary to operate and decommission Comanche Peak?
A. Yes. I believe that Applicants have a reasonable plan to finance the operation and decommissioning of Comanche Peak.
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Attachment A ERLE A. NYE STATEMENT OF EDUCATIONAL AND PROFES .ONAL MIALTFICATIONS POSITION: Executive '! ice President and Chief Financial Officer of Texas Utilities Company FORMAL EDUCATION: BSEE, Texas A&M University J.D., Southern Methodist University EXPERIENCE:
1980 - Present Executive Vice President and Chief Financial Officer of Texas Utilities Company, has management responsibility for the finance, accounting, corporate secreterial and adminstrative areas of the company's operations.
1875 - 1980 Vice President of Dallas Power & Light Company, at DP&L responsibilites included the legal, rate, regulatory, financial and accounting functions.
1972 - 1975 Manager of Corporate Services and Legal Counsel, Dallas Power & Light Company.
1969 - 1972 Manager of Legal Services & Legal Counsel, Dallas Power & Light Company.
1966 - 1969 Executive Assistant, Dallas Power & Light Company.
1960 - 1966 Engineer, Dallas Power & Light Company.
MEMBER - Financial Executives Institute Society of Rate Of Return Analysis Financial Committee of the Edison Electric Institute l
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- dS ic ATTACHMENT B Pcgc 1 of 1 p
Art.1446c conrOnATiONS Title 32 M
M fixed by the regulatory authority'by rule, and at shorter intervals on pay-h Tj ment of reasenable fees fixed by the regulatory' nuthority. Th'e regula-tory.. authority shall. declare 'and establish . r,easonable. fees to be : paid l
[, for otlyer'exarnining and testing such rneters.and other measuring de-p_, vices on the reque,st of the consurner. .If the test ii. requested to be made p L
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within the period.cf presumed accuracy as, fixed by .the, regulatory au-ff-l . thority since.the last such test of the same meter or.other, measuring de-vice, the fee to be' paid by..the consumer 'or 1
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& shall be refunded to the consumer or user.if user vice is found, unreasonably defectiv at theortime the meter of,his request measuring.de. t g advantage of the consumer or user.e or incorrect to th'e subs'tantial dis
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g If the consuiner's riquest is'made y" at a time beyond the period.of presumed accuracy fixed by the regulatory authbrity since the last such' test of the same meter o'r measurin'g device h the utility shall'make the test without" charge to illec ' onstimer or ' user,,
4 ARTICLE VI. . PROCEEDINGS BEFORE THE l, REGULATORY AUTHORITY 'l
.{ Power.to insure connj.11ance;. rate regulation.
i Sec. 37.- j
.g Subject to the provisions of this Act, theloramission or rail-s roadcoinmission is'hereby ' vested with all authority and power of the y i7 State of Texas to' insure compliance with the obligations of public utili- i ties ~in'this Act. For this purpose the regulatory authority is empowered .!
i 2 to fix.and regulate' rates of public utilities, including. rulci and regula-
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? tio'Es for. determining th'e , classification of " customersan'd..scrvice's and '
3 for deteHnining the upplicability of rates. 'No r'ule'ororder'of the rer.
} ulatorybody.
ulatory authority shall be in conflict3 rith the rulinis of any federal rer. ; '
i Just and reason.41e rates j; ,
-J' Sec. 38. . It shall.be the duty of the regulatory authority to insure
) that every rate made, demanded, or received by any public utility, or by 3 '
O any .two or more public utilities jointly, shall be just and reasonalle.
Rates shall not be unreasonably preferential, prejudicial, or discrimina- ,
c tory, but sht!! be sufficient, equitable, and consistent in application to i each class of Eonsumers. For ratemaking purposes, the commis'sion o'r -
r railroad commission may treat two ar more municipalitics served byt ia public utility as a single cla;.s wherever the commission or railroad com-mission deems such treatment to be appropriate.
- Fhing over511 revenues Sec.39. In fixing the rates of a public utility the regulatory authors.
ty shall fix its overall revenues at a level which will permit such utility I to ' recover its operating expenses together with a' reasonable return on its invested capital.
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- Fstr return; burden of proof Sec. 40. .
I- (a) The regulatory authority shall not prescribe any rate ,
r which will yield more than a fair return upon the adjusted value of the , I invested capital used and useful in rendering service to the.public. I E . (b) In any' proceeding jnvolving any proposed change of rates, the i l b6rden of proof to show tha* the proposed change, if propc'sed ly the j '
i utility, or that the exisling rate, if it is proposed to reduce the rate /is just ,
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and reasonable shall be on the ~public utility. '
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- Components of adjusted m1ue of Invested capital and net inconne l!
f' Sec.41. The components of adjusted value of invested capital and sti I i
income 'shall be determined a'ecording to the following rules:
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ATTACHMENT C l Page 1 of 6 SECTION 3. RATES 052.02.03.031 Rate Base 1
(a) Rate Base '
I The rate base is the adjusted value of the invested capital used j and useful in rendering service to the'public. Components to be included in determining the ov.erall utility rate base are as follows:
(1) Adjusted value of utility plant used by and useful to the public utility in providing service; adjusted value shall
- be a reasonable balanc'e, as provided by the Act, between original cost less , depreciation and current cost less an adjustent for both' age' and condition.
(2) Construction work in progress, where necessary to the financial integrity of the utility, at original cost as recorded on the books of the utility.
(3) k'ork ing capital ellowance to be composed of but not limited to the following:
(A) Reasonable inventories of materials, supplies and
.i fuel held specifically for purposes of permitting'
.' efficient operation of the utility in providing l normal utility service (e.g., excludes ' appliance
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inventories);
, (B) Reasonable prepayment for operating expenses; and i
(C) A reasonable allowance up to one-eighth (1/8) of total annual operations and maintenance expenses excluding allowance for (A) and (B) above.
(4) Deduction of certain items which include but are not limited to the following:
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(A) Accumulated reserve for deferred federal income l taxes; (B) Unamortized investmnt tax credit to the extent allowed by the Internal Revenue Code; (C) Contingency and/or property insurance reserves; and (D) Customer contributions in aid of construction.
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ATTACHMENT C (b) Original Cost 2 of 6
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Original cost is the amount of money actually paid (or the money !
value , of any consideration other than money exchanged) for j property at the time when it was first dedicated to the public ',@-
ld ff use. 1 11 Reserve for Depreciatio'n l !I
-(c) ,I I
' p. i Reserve for depreciation is the accumulation, of recognized .
4 losses in service value of the original cost of an item or yi facility not restored by maintenance, caused by age, wear, tear !'
[ and obsolescence. Depreciation shall be computed on a straight line basis dver the expected Oseful life of the item or facility. j - ,
f -l (d) Current Cost Current cost.is the cost of replacing existing utility plant at d current ' prices no greater than if replaced by current t-l technolo'gy. Alternative methods of determination, including but ,Q i:!
not , limited to the following, may be considered by the J ,
'i i Commisison: ,
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Trending original cost with Commission approved indices; y (1) i,;
or hl Current cost studies. Unless approved by the Commission, jy (2) the cost of such studies will rot' be allowed'in the cost of (({
service.
(e) Adjustment.for Age and Condition ,
For rate making purposes, depreciation expense, including ,
i, accumulated depreciation on original cost, and the adjustment !
for age and condition on current cost shall be consistent with l
each other. ,
(f) Allowance for Funds Used During Construction j
Discontinuance of the capitalization of an allowance for funds t
used during construc. tion will be concurrent with inclusion of construction work in progres~s in the rate base.
052.02.03.032 ' Cost'of Service L
(a) Cost of Service ,
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. ATTACHMENT C
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- - Cost (1) cover of service all is equal to that amount of revenue required to 1 l
reasonable and necessary expenses properly f-i incurred by the utility in rendering service to the public and (2) provide a f air ~ and reasonable return on the adjusted value of I invested capital used and useful in renderinj such service. Cost L of service shall include but not be limited to the following: i g ,
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. Operations and maintenance expenses incurred in furnishing U normal utility ~ service and in maintaining utility plant (S
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- 4 used ,
service; by and useful to the utility in providing such j r
3 (2) n Depreciation expense based on original cost and computed on a straight line basis as approved by the Ccmission; (3) Assessments and taxes other than income taxes; m@
n (4) Income taxes on a. normalized basis; G
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(5) Return on adjusted value of invested capital; and
- 3 (6) Advertising, contrib.rtions and donations i E.
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(A) The actual expenditures for ordinary advertising, .
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@ contributions and donations will be allowed as a J.' cost of service provided that the total sum of all '
S such items allowed in the cost of service shall not !
j exceed three-tenths of one percent (0.3%) of the g
gross receipts of the utility for services rendered to the public, m
j '(B) !
y No expenditure shall be allowed as c cost of service .i*
for the following' special items: .
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y i (i) Funds expended for influencing legislation; E
i (ii) Funds expended in -support of political ;
candidates; '
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- , (iii) Funds expended in support of any political a
movement; 5
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(iv) Funds expended in promotion of political or
- L religious causes; i
(v) Funds expended in support of or membership in !
social, recreational, fraternal, or religious :(
I clubs or organizations; !4
, (vi) Funds promoting increased consumption of energy; and (vii) Additional funds expended to mail any parcel l
or letter containing any of the above special I,
items.
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p" ATTACHMENT C Q. Page 4 of 6 a W:\ \
f1 (C) The following expenditures may be allowed by the Comission: '
g (i) Funds expended promoting methods of conserving energy; .
5 ' (ii) Funds expended promoting methods by which the Cy consumer can effect a savings in' total bills;
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et (iii) Funds expended promoting load factor C
improvement at off peak times; and '
5 1 EE (iv) Funds expended in support of or membership in
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professional or trade associations provided i iss such associations ~ contribute toward the y professional standing of their membership.
j (b) Rate of Return I
.m 30 The rate.of return is the revenue earned by a utility from its
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utility operations, over and above allowable operating expenses, i M4 expressed as a percentage of invested capital and of adjusted y value of invested capital.
(1) The return shall be reasonably sufficient to assure 2.
confidence in the financial integrity of the' utility and iQ' shall- be adequate, under' efficient and economical 7 management, to maintain its credit and attract the capital M necessary for the proper discharge of its public duties. }
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. (2) In fixing the rates of a public utility, the Comission j shall fix its overall revenues at a level which will permit -
n such utility to recover its operating expenses together f with a reasonable return on its invested capital, but the y Comission shall not prescribe any rate which will yield more than a fair return upon the adjusted value of the '
invested capital used and useful in rendering service to the public.
jij (3) In determining the amount cf revenues necessary to satisfy ,
- ijJ these requirements, the-Comission may consider inflation, '
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deflation, quality of service being provided, the growth rate of the service area and the need for the utility to i
%- attract new capital. In each case, the Comission shall '
q consider the utility's cost of capital. Cost of capital is is the composite of the cost of' the various classes of capital used by the utility. i
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$ (A) Debt Capital: The cost of debt capital is the actual j cost of debt.
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.] (B) Comon Stock Capital: The cost of common stock f capital shall be based upon a' fair return on its ji adjusted value.
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ATTACHMENT C Paga 5 of 6 p/9 7 (C) Preferred Stock Capital: , Tne cost of ' preferred t D.; stock capital is its annu~al dividend requirement
[. plus an adjustment for premiums, discounts and cost
_ of issuance.
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', (D) Equity Capital: The cost of equity capital shall be l d based upon a fair return on its adjusted value.
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- H-Rate Structure 052.02.03.033 ,,
E N' (a) level of Rates
- 8. In fixing the rates of a public. utility, the Commission shall fix !'
$ the overall , revenue requirements at a level which will permit g such utility to recover its allowable. operating expenses l m together with a fair and . reasonable return on its capital J E investment. {.
E U (b) Rate Design '.
e a (1) Rates shall not be unreasonably pre. f erential, prejudicial, a ql M' or discriminatory, but shall be sufficient, equitabia and l,
@ consistent in application to each class of customers, !
$ taking into consideration the need to conserve eneroy and .
9- resources.
79 Z (2) An adjustment for recovering the cost of fuel used in the .
$ generation of electric power may be allowed in the tariff /
w of electric utilities when approved by the Commission .
?5 provided that.
.'it h (A) At the time of a rate hearing, the utility shall have
- Y filed with the Comission all requested fuel . :
contracts' and cost data upon which such total fuel (h -
costs are predicated with a schedule showing any y adjustments anticipated under current contracts; S (B) The total cost of fuel is shown separately on the
-] bill as cost per kilowatt-hour of electricity used and no fuel charges are included in the base rate; 5
3 (C) The items included and sum charged for' total fuel
- j costs are approved by the Commission prior to the first time the separated billing form is used;
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h (D) The utility files with the Commission, before i 9 adjustment of total fuel costs to customers, any !.l requested contracts for fuel and a revised schedule +
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3 of anticipated adjustments. Changes in fuel costs S to customers will be reviewed on a regular basis by j the Commission, and improper increases may be disallowed. If any fuel cost increases are
$. disallowed, the utility shall provide appropriate y; refunds, including interest, to affected customers j within thirty (30) days of notice by the Commission;
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hy ATTACHMENT C I
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't iEE EIN (E)
% Fuel costs billed shall be for fuel consumed in the generation of electric energy in the calendar month :I i T~ . that most closely corresponds to the billing period; 12 r (F) Fucl costs are billed uniformly to all customers on g a per: kilowatt-hour use basis regardless of.
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class or quantity of use, unless otherwise , customer provided
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?j: (G) The total fuel cost is applied equitably to each [ l customer's bill and is proportional to the number of k if kilowatt-hours used. This shall be done by 5
& determining a fuel cost factor.
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9 3 t) Each electric utility shall maintain.a monthly record of '
Ms the cos.t' of fuel used in the generation of electricity which is included or will'be included in customer rates.
3 M Such r'e' cord shall show at each month end the total cost j 1
3 (actual or estimate) of fuel consumed for that month and on E a .' cumulative . bas is, and" the total dollar amount of ' j!
G revenues" resulting from the fuel cost com in
$F cu stomer ' ra't es . Any difference betwe'en the (1) ponent total cost !'
of fuel consumed and (2) the amount of revenues resulting p' I$ from .the fuel cost compor.ent in customer rates shall be h
3 credited or charged to the customers in the ne(t billing month.
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(4) An adjustment for recovering the cost of economy energy :
7 purchased pursuant to a sale ~between different electric 5 utilities may, at the Com .ission's discretion, be allowed
$ in the tariff of the purchasing utility. a
% , 3 j (c) Rate Structure it Final approval of the rate structure is at the discretion of the .
l,t Commission.
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p 32.02.03,034 Form and Filing or Tariffs ' '
(a) Effective Tariff I I
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.- No utility shall directly or indirectly demand, charge, or ;~
T collect any rate or charge, or impose any classifications,
{ practices, rules, or regulations different ftom those ;
[ prescribed in its effective tariff filed with the Commission, j (b) Requirements as to Size, Form, Identification and Filing of Tariffs >
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Y j Attachment D TEXAS POWER & LIGHT COMTANY '..
RATE DEVEIAPMENTS t
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1 Cranted Docket #178 (000's) Docket #1517 (000's) Docket #3006 (000's) t .
I Docket #3780 (000's) 3,*
f Test year utilized (Historical 12 months ended) 09-30-76 09-30-77 E!
09-30-79 12-31-80 l Annual amount of revenue increase requested-test-year basis (000's) $134,841 $118,483 $124.053 $197.961 Data petition filed 12-22-76 12-21-77 01-04-80 03-06-81 Annual amount of revenue increase allowed- '
test year basis (000's) $58,243 $41,222 $81,875 $ 57,083 r Percent increase in revenues allowed 11.59% 6.80% 10.05% 5.61% l' hte of final order 04-25-77 05-08-78 04-29-80
- 08-05-81 Ef fective date (Date Revenue Effected) 06-12-77 06-01-78(Rural) 05-27-80 08-08-81 Rate base finding (000's) (Original Cost) $1,382.715 $1,489,618 $1,735,537 $1,941,705 Construction work in progress included in .I Rate base (000's) $188,955 $92,010 $187,252 $286,659 l Rate of return on rate base authorized 9.86% 9.99% 10.91% 11.91%
g Rate of return on common equity authorised l 13.75% 13.75% 15.50% 15.71% g
.. i Revenue Effect (000's) - '
Amount received in year granted Not Available Not Available $51,365 $18,367 Amount received in subsequent year Not Available Not Available $85,596 Not Available j (if not available, annualized amounts recalved in year granted) '
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f i Note: As of 11-20-81, there were no pending request.
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Attachment D
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TEXAS ELECTRIC SERVICE CGtPANY
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RATE DEVEl,0PMENTS '
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! Cranted Docket #527 (000's) Docket #1903 (000's) Docket #260s (000's) Docket #3250 (000's) I Test year utilized (Historical 12 months ended) !
03-31-77 03-31-78 03-31-79 03-31-80 4 Annual amount of revenue increase requested-test-year basia (000's) $ 79,G53 $109,969 $67,937 Date petition filed $122.904 !
06-29-77 05-30-78 05-17-79 05-15-80 Annual amount of revenue increase allowed- ,
test year betis (000's) $43,772 $ 37,936 $37,909 $69,390 !
Percent increase in revenues allowed 13.2% 8.4% 7.6% 10.05%
Date of final order {'
11-02-77 10-16-78 10-16-79 10-03-80 Effective date (date Revenue Effected) 11-22-77 10-26-78 10-23-79 10-14 Rate basi fi~. ding (000's) (Original Cost) $952,451 $1,107,025 $1,287,719 $1,3 73,810 {
Construction work in progress included in ,
Rate base (000's) $154.889 $130,347 $216,982 $269.040 Rate of return on rate base authorized 9.78% 10.044% 10.516% 11.312%
- Rate of return on common equity authorised 13.5% 13.75% 14.5% 15.50%
Revenue Effeet (000's)
- Atowit received in year granted Not Available Not Available $8,215 $12 C?
Anoimit received in subsequent year Not Available Not Available Not Available Not Available (If not available, annualized amounts received in year granted) 4 4
Note: As of 11-20-81, there were no pending request. ,
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IE Attachment D I
- P DALLAS POWER & LICHT COMPANY
- I ,
g RATE DEVELOPMENTS
- I 1 .
Cranted Docket #1526 (000's) Docket #2572 (000's) Docket #3460 (000's) ,
Test year utill ed (Historical 12 monthe ended) 09-30-77 12-31-78 3 Annual amount of revenue increase requested- 06-30-80 d
I
, test-year basis (000's) $76,862 Date petition filed
$57,096 .$80,638 12-28-77 04-27-79 09-26-80 Annual amount of revenue increase allowed-test year basis (000's) $41,639 $37,200 .$56,269 i
Percent increase in revenues allowed Date of final order 13.0% 9.7% 11.4% )'l 05-08-78 l 10-16-79 02-26-81 Effective date Gate Revenue Ef fected) 06-28-78 10-26-79 03-02-81 Rate base finding (000's) (Original cost) $675,214 $845,594 Construction work in progress included in $921,899 )
Rate base (000's) $87,749 l
$194,588 $243,568 (
Rate of return on rate base authorized 4
9.351 10.02% 10.99% j Rate of return on common equity authorised 13.75% 14.50% 16.00%
Revenue Effect (000's)
- i j
Amount received in year granted $5,590 $7,163
$56,797 reflects I Aeount received in subsequent year (See Note 2)
(If not availableg annualized enounts amortization of the rate I received in year granted) increase for the year )
granted; subsequent year not available because of timing.
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- Note
- As of 11-20-81, there were no pending request. )
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4 8
i 1-Attachment E
. }
TIIAS UTILIT1xS COMPANY Anis SUaSIDIAR1xS CONSOLIDATED
] F N m STAT 16T Y Se e r 30 91 tean 1979 .- 1e7a
( u.r. 1. . m l ., !
i Earnings available to co m a equity $ 351.3 $297.8 $211.2 $200.7 ( '
- Average cosuson equity $2,216.2 $1,960.5 $1,727.4* $1,528.6 ?
Rate of return on average casunon equity 15.9% 15.24 12.22 13.13i <
r Times tetal interest earned before FIT: Incl. Le1. Inet, aset. Inet. zuel. Inet. Eset.! ',Y 1
Gross income (both including and excluding AfDc, Aroc g g g g g g ;
l i :
AFDC) + current and deferred FIT + total < L l interest charges + amortization of debt ;
ciscount and expense 3.5x 3.1x 3.3x 2.9x 3.0x 2.7x 3.4x 3.1x ;-
l #
i j
l Times long-term interest earned before FIT: ;
1 Gross inco:ne (both including and excluding . .
AFDC) + current and deferred FIT + long- }
term interest charges + amortization of [ 4 debt discount and expense 4.1x 3.7x 3.sg 3.4x 3.5x 3.2x 3.9x 3.5x l
, l 4
Bond ratings (end of period) '
y AAA AAA AAA AAA 4 i . Standard and Poor's ;
. Moody's Aaa Asa Asa Asa Times interest and preferred dividends. earned f' l . after FIT: i e Gross income (both including and excluding AFDC) + total interest charges + amortization .
of debt discount and expense + peferred dividends. 2.2x 1.9x 2.1x 1.ex 1.9x 1.6x 2.ex 1.7x l i s AFU0C
$ 93.0 $78.2 $59.6 $54.0 i $ 351.3 $297.s $211.2 $200.7 lie,t income after preferred dividends 26.3% u.3 2. 2: n.,
t . .
4 Market price of cousson (year-end cl.ee) . $19.625 $1s.625 $17.75 8's.s75 Book value of common $22.79 $21.76 $20.so $20.14 Market-book ratio (end of period) 86.1% es.63 85.3x 93.72 .
Earnings avail. for casumon less AFDC + i depreciation and amortization, deferred ,
- '. axes, and invest. tax credit adjust. .
deferred. $587.2' $548.7 $469.7 $421.4 h
1
' $185.1 $164.5 $142.3 $119.9 s Cocoon dividends (Declared) 3.3K 3.5x !
Ratio 3.2x 3.3x
['
Short-tern debt - :
, Bank loans
$50.0 -
Co=nercial paper $ 149.1 $165.9 $175.7 $221.4 !
l Capitalization (Amount i Percent)
Long-term debt $2,625.1 46.8% $2,527.7 48.43 $2.368.6 50.02 $2,038.7 48.91 Preferred stock 600.1 10.7 600.1 11.5 535.8 11.3 506.2 12.1 Canon equity 2,380.8 42.5 2,090.5 40.1 1,831.8 34.7 1.625.5 39.0
- If subsidiary company, use parent's data.
~_
Attachment E DALIAS PoWEe & LICHT CoMPANT .
F1MANCIAL STATISTIC 5 12 months ended
september 30. 1985 19eo g979 g9yg g o (aottare in mittione) ,
Earnings available to comon equity $ 68.7 $ 60,8 $ 39.4 $ 36.4 ;
Average common equity $428.7 404.3 357.5 330.7 -
]j Rate of return on average common equity 16.02 15.0% 11.02 gg,og ,' ..i Times total interest earned before FIT: tact. Exes. Inet. Exet. Inct. Exet. Inet. Exe1. .;
Cross income (both including and excluding AFDC AFDC AFDC AFDC AFDC AFDC AFDC AFDC i AFDC) + current and deferred FIT e total [
interest charges + amortization of debt ,
discount and expense 4.4x 4.tx 4.0x 3.6m 3.2m 2.7s 3.ts 2.6x j Times long-term interest earned before FIT: !
Gross inco::ie (both including and excludlag AFDC) + current and deferred FIT + long- ,
term interest charges + amortization of ,
debt discount and expense 5.8x 5.4x 5.8s 5.3x 4.2x 3.6m 3.7x 3.tz F Bond ratings (and of period) j
. Standard and Poor's AAA AAA AAA AAA 8 Moody's Ama Aan Aas Asa Times interest and preferred dividends. earned after FIT: 5 Gross income (both including and excluding AFDC) + total interest charges + amortization of debt discount and expense + preferred dividends. 2.7x 2.4x 2.4s 2.1x 2.0 1.6m 2.0a 1.6s
- AFUDC $ 11.4 412.4 $16.5 $15.7 ,
j liet income after preferred divittends $ 63.7 460.8 $39.4 $36.4 5, 16.6% 20.42 41.92 43.tz s
Market price of comon (year-end close) * $ 19'625 $18.625 $17.75 $18.875 Book value of common * - $ 22*79 $21.76 $20.80 $20.14 ,
Market-book ratio (end of period)* 84,82 85.62 85.32 93.72 '
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/ Earnings avail. for coeuon less AFDC +
depreciation and amortization, deferred taxes, and invest. tax credit adjust.
deferred. $107.9 $95.2 $76.8 $70.5
' Cocnon dividends 8 38.9 $33.0 $32.5 $19.2 -
htio. 2.8x 2*98 2'08 3*I8 Short-term debt (to Parent) $ 5.5 $50.6 $76.5 $77.1 Capitalization (AmountiPereest)
Long-term debt $393.2 41.1% $345.8 39.II $346.4 41.9% $373.0 45.7%
- Preferred stock 104.7 11.0 104.7 11.9 104.7 12.7 104.7 12.8 Canon equity 458.4 47.9 433.0 49.0 375.7 45.4 339.3 41.5
- If suSsidiary company, use parent's data.
k Attachment E TEXAS ELECTRIC SERVICE COMPANY ,
FINANCIAL STATISTICS 12 Months Ended September 30.19R1 1980 1979 1978 (dollars in millions) -
Earnings available to comon equity $136.3 $105.9 $72.1 $72.0 Average common equity $728./ $667.2 -
$586.3 $539.4 Rate of return on average common equity 18.72 15.92 12.33 13.33 Times total interest earned before FIT: tact. Exet. Inet, ruet. Inet. Exel. Inet. r. net. .
AFDC AFDC AFDC AFDC AFDC d Gross income (both including and excluding AFDC AFDC AFDC AFDC) + current and deferred FIT + total interest charges + amortization of debt discount and expense 4.8x 4.2m 4.43 3.9 3,3, 3,4, 4,g, 3,7, Times long-term interest earned before FIT:
Cross inco:ne (both including and excluding AFDC) + current and deferred FIT + long-term interest charges + amortization of debt discount end expense 5.4x 4.8x 4.6s 4.1 4.on 3.6s 4.6s 4.ts Bond ratings (end of period)
AAA AAA AAA
. Standard and Poor's AAA Aas Asa fee j
Moody's Aaa Times interest and preferred dividends. earned after FIT:
Gross income (both including and excluding AFDC) + total interest charges + amortization of debt discount and expense + preferred dividends. 2.7x 2.2x 2.5m 2.tz 2.2m 1.9s 2.2s 1.9s
- AFU0C $ 35.4 $26.7 sis.s $19.3 1
Net income after preferred dividends $136.3 $105.9 $72.1 $72.0 I 25.92 25.22 16.13 27.5% 1 5
Market price of coninon (year-end close) e $19.625 $18.675 $17.75 $18.875 Book value of comon e - $22.73 $21.76 $20.80 $20.14 , .
Market-book ratio (end of period) e 86.12 85.6% e5.32 93.72 ,j
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/ Earnings avail for comon less AFDC + #
depreciation and amortization, deferred taxes and invest. tax credit adjust.
deferred. $184.9 $166.4 $145.0 $131.2 2 Co:::non dividends 5 67.4 $ 58.3 $ 50.5 $ 46.1 ~'
l Ratio 2.7x 2.9s 2.9s 2.as Short-term debt (to rarent) $65.0 $12.0 $51.0 $34.0 Capitalization (Amount i Percent) long-term debt $669.0 39.92 $678.1 42.8% $618.4 44.4% $545.5 42.8%
Preferred stock 209.6 12.5 209.6 13.2 175.0 12.5 175.o 13.7 Corton equity 7%.6 47.6 699.0 44.0 600.4 43.1 553.9 43.5
- If suSsidiary company, use parent's data.
..'.8 Attachment E TEXAS FoutR & LIGHT CoMPAN7
- i FINANCIAL STATISTICS I 12 Hontha Ended C,eptembe r 30, 1981 1980 1979- 1978 i (aollare to millions) {
[arnings available to comon equity
$155.2 $139.9 '
$109.3 $106.3 {
Average common equity $985.0 $843.3 $764.3 $698.7 ;
Rate of return on average common equity 15.85 16.23 14.33 13.22 !
i Times total interest earned before FIT: Incl. Excl. Incl. Esc 1. Incl. Esc 1.
G.oss income (both including and excluding Inct. Esc 1.
AFDC AFDC g AFDC AFDC AFDC AFDC Ag j AFDC) + current and deferred FIT e total interest charges + amortization of debt
! discount and expense 4.1x 3.6x 3.9s 3.5 3.8m 3.5 4.tz 3.9s Times long-term interest earned before FIT: !
i Gross inco:ne (both including and excluding .
l 1
AFDC) + current and deferred FIT e long. '!
term interest charges + amortization of i debt discount and expense 6.4x 3.9x 4.3s 3.8m 3.9s 3.5m 4.es 4.ls Bond ratings (end of period) >
-Standard and Poor's AAA j
AAA AAA AAA -
Hoody's Aaa has Aas
, Aas l Times interest and preferred dividends. earned ,
after FIT: )
Gross income (both including and excluding AFDC) e total interest charges + amortization ;
of debt discount and expense + preferred ,
dividends.
2.4x 2.0x 2.3s 1.9s 2.2 1.9s 2.3s 2.ts 3 AFUDC $ 43.4 $ 37.7 $ 23.8 $ 18.1 Net income after preferred divids%ds $155.2 $139.9 $109.3 $106.3
( g, 28.05 26.9% 21.82 17.02 ~
Market price of conson $19.625 $18.625 Book value of connon * - (year-end closa) a $17.75 $18.875 1 $22.79 $21.76 $20.80 $20.14 Market-book ratio (end of period) a 86.1% 85.62 85.32 93.72
/ Earnings avail, for comon less AFDC +
depreciation and amortiration, deferred taxes, and invest. tax credit adjust.
deferred. $237.8 $239.6 $219.8 $200.3 Comon dividends 8 89.0 $ 75.9 $ 65.2 $ 59.0
- 1 Ratio 2.7x 3.2 3.4s 3.4s Short-term debt (to Parent) -
$70.0 $ 5.5 -
Capitalization (teount i Percent)
Long. term debt $1.093.0 44.8% $1.015.5 45.7% $949.6 47.2% $820.1 46.4%
Preferred stock 285.8 11.7 285.8 12.9 256.1 12.7 226.5 12.8 Conan equity 1,060.8 43.5 920.4 41.4 806.3 40.1 722.3 40.e ,
- If subsidiary conpany, use parent's data.
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