ML20062C536

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Forwards Response to 781025 NRC Request Foraddl Info Req to Proceed W/Financial Review of Beco Appl for Permit to Design & Constru of Facil.Covers June-Sept 1978 Earning Results & Financial Statements for Period Ending 780930
ML20062C536
Person / Time
Site: 05000471
Issue date: 11/03/1978
From: Rhonda Butler
BOSTON EDISON CO.
To: Parr O
Office of Nuclear Reactor Regulation
References
NUDOCS 7811090140
Download: ML20062C536 (34)
v • d • e


Text

.

BOSTON EDt9CN COMPANY '

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November 3,1978 i

Mr. Olan D. Parr, Chief

[X Light Water Reactors Branch f 3 Division of Project Management Office of Nuclear Reactor Regulation b{

U.S. Nuclear Regulatory Commission k Washington, D. C. 20555

% C-s NRC Review of Financial Qualifications:

Partial Submission of Information Requested

Dear Sir:

On October 25, 1978, NRC telecopied to BECo a list entitled " Additional Information Required to Proceed with Financial Qualifications Review of Boston Edison Company's Application for Permit to Design aiid iSFistruct ~

Pil grim Unit _2." This list, which included eleven items, was described by Mr. Licitra as the final request for information in your financial qualifications review. At this time we are supplying six of the eleven items requested. We will provide the remaining items in the irnediate future.

The six responses, which are attached, are as follows:

Response fl. June 1978 Earnings Results Response f2. August 1978 Earnings Results  ;

Response f3. September 1978 Earnings Results Response #4&5. Boston Edison Company Financial Statements (for)

Period Ending September 30, 1978. (This is sub-mitted in response to NRC request #4, Statement of Source and Application of Funds for year ended September 30, 1978, and rew ast #5, Statement of Source and Application of Funds for 9 months ended September 30,1978.)

Response #7, SEC Form 10-Q for quarter ended June 30, 1978, Very truly yours, 35(/b10 @ Z Qy M.G1.rP Attachment URG/cac cc: Mr. M. Karlowicz (NRC) w/a

~ ~

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RESPONSE #1 JUNE 1978 EARNINGS RESULTS

^

STATEMENT OF INCOME FOR MONTH OF JUNE 1978 R EV ISED BOSTON EDISON COMPANY lR E NT MONTH ACTUAL YEA 4 TO DATE -

AC TUAL 8 ,

THIS YEAR _ LAST YEAR INC THIS YEAR LAST YEAR INC ..

PER ATING REVENUE S 277,616,677.42 251,459,411.91 1 0'. 4 -

EL ECTR IC 43,927,472.54 42,059.795.15 4.4 1,853,932.11 2,400,018.35 ( 22.8 ) 21,607,886.80 23,467,333.30 (7.9)

STEAM 6,174,319.81 6,409,820.01 (3.7)

OTHER 1,157,604.24 1,046,082.75 10.7 TOTAL 46,939,008.89

  • 45,505,896.25
  • 3.1 305,398,884.03
  • 281,336,565.22
  • 8.6 PER ATING E XPENSE S 153,509,484.70 9.8 OPERATION 21,656,594.36 23,311,830.33 (7.1) 168,570,823.16 3,421,923.88 4,043,830.24 ' ( 15. 4 ) 17,282,406.10 16,395,635.82 5.4 M AINTEN ANCE 169,905.120.52 25,078,518.24 2T,355,660.51 18.33 185,853,229.26 9.4 SUB TO T hi 3,824,000.00 3,128,000.00 2.6 22,941,000.00 22,368,000.00 2.6 OEPRECIATION 52,243,862.65 10,430,377.10 8,473,615.56 23.1 56,891,308.76 8.9 TAXES 39,332,895.34
  • 39,557,276.13 * (.6) 265,685,538.02
  • 244,516,983.17
  • 8.7 TOTAL 1,606,113.55
  • 5,948,620.12
  • 21.9 39,713,346.01
  • 36,819,582.05
  • l.9 NET OPERATING I NC OME T r1ER INCOME (1,489.05) (2,401.42) 6,878.91 (14,069.823 NONUTILITY OPERATIONS (116,423.85) (11,86T.05)

NON-OPER RENTAL INCOME (44,827.51) (15,242.25)

(38,650.183 1.001 1,936.34 1,827.20 6.0 INTEREST C DIV I NC OME 274,899.06 744.5 447,981.00 (2,693,497.291 2,321,440.00 ALLOW FUN 05 OUR. CONST 217,548.22 213,768.16 57,133.65 44,952.67 _27.1 1.8 EQU. IN EARN. OF SUB.C 42,416.95 51,560.92 (17.7)

MISC OTHER 4,168.34 26,046.91 ( 84.0)

(.001 1,38 % 00 (100.08 7,497.49 97,069.69 (92.31 GAIN ON SALE 601,188.16

  • 308.7 424,316.25 * (2,638,161.38)* 2,481,294.06
  • TOTAL

_8,030,429.80

  • 3,309,858.T4
  • 142.6 42,194,640.07
  • 37,426,710.21
  • 12.7 TOTAL INCOME -

IISC INCOME DEDUCTIONS 76,225.88 69,874.06 9.1 MISC AMORTilATION 12,834.05 12,567.83 2.1 2,783.72 2,820.23 (1.31 45,170.65 32,289.90 39.9 OT HER INCOME DEDUC TS 22,150.00 32,400.00 (31.61 11T,310.31 194,400.00 ( 3 9. T l TAXE5 APPL. OTHER INC.

.00 .00 .00 .00 MISC LDSS ON SALE TOTAL 37,767.77

  • 47,788.06 * (21.01 238,706.84
  • 296.563.96 * (19.51 7,992,662.03
  • 3,262.070.68
  • 145.0 41,955,933.23
  • 37,130,206.25
  • 13.0 INC BEFORE INT CHRGS
  • NTEREST CHARGE S 3,993,180.82 3,993,840.78 (.08 23,961,151.65 23,592.515.94 1.6 INT ON LONG TERM DE8T OT HER INTEREST 894,062.17 508,361.61 75.9 4,798,006.24 3,403,411.60 41.0 (1,048,622.00) (3,390,421.76) (5,418,693.00) (3,390,421.76)

AFUDC 80RROWE0 FUN 05 18,781.03 2,804.29 1,969.47 42.4 16,679.32 (11.21 AMORT OF NET PREMluM 3.841,425.28

  • 1.113,I50.10
  • 244.9 23,351,144.21
  • 23.624,286.01 * (1.1)

TOTAL 4,151,236.IS

  • 2.148,320.58
  • 93.2 18,598,789.02 + 13,505,919.44
  • 31.7 lET INCOME 2,In ,100.00 .0 458,766.67 458,166.61 .0 2,155,100.00 PR EF ERR E0 DIV10ENO S 825,458.33 825.458.33 .0 4,894,416.61 4,894,416.67 .0 PR EFERENCE olV IDEN05 2.861.011.15
  • 864,095.58
  • 231.8 10,949,212.35
  • 5,856,402.7T
  • 87.0 3AL. AVA IL ABLE COMMON 14,072,090.00 12,852,090.00 9.5 COMMON OlVIDEN05 2,345,348.34 2,548,681.66 (8.01 521,663.41 * (1,6_84,586_.08)* _ _ (3,122.817.653* (6.995,681.23)*

dALANCE AFTER OlVS _

EARNINGS PERSSilARE 0.25 0.07 0.95 0.58 RESTATED FOR Wil0LESALE ADJ. 0.55 1 NUMBER OF SilARES 11,534,500 11,534,500 11,534,500 10,168,909

NNW -

f INCOME-CONTINUED ,

MONT H '

JUNE 1978 REVISED .

h&#0SJO%888 50N COMhANy ACTUAL $TATEMENT CURRENT MONTH ACTUAL YEAR TO DATE pg... ~ -

r THI$ YE*R LAST YEAR INC THIS YEAR LASI YEAR _INC -

OPERATIONS FEDERAL

$NCOME INCOME TAX .00 .00 . 00 .00 DEFERRE0 INCOME TAXES ACCELERATED. AMORT. .00 .00 .00 .00 LIBERALIZED DEPREC 3,090,469.00 1,648,973.00 87.4 13,128,921.00 10,502,321.00 25.0 OTHER .00 .00 .00 .00 INVEST. TAX CR ADJS (161,000.001 (134,000.00) (966,100.001 (804,000.003 TOTAL INCOME 2.929,469.00 1,514,913.00 93.4 12,162.821.00 9.696,321.00 25.4 INS .C ON TR I B ACT 290,031.95 253,949.47 14.2 1,783.143.88 1,675,562.14 6.4 UNEMPLOYMENT TAX ACT 1,868.99 625.25 198.9 114,827.72 8 6,0 50. T 6 33.4 HIGHWAY USE 2,500.00 680.00 267.6 15,000.00 4,080.00 267.6 T3TAL FEDERAL 3,223,869.94 1,770,227.72 82.1 14,075,192.60 11,464,J13.90 22.8 STATE CORPORATE FRANCHISE 225,485.00 156,961.00 43.7 958,187.00 998,240.00 (4.0)

MOTOR E XCI SE 9,500.00 9,500.00 .0 57,000.00 35,550.00 60.3 EMPLOYMEN T SECUR ITY 7,28T.16 4,019.28 81.3 415,968.62 482,764.46 (13.81 SALES AND USE .00 .00 .00 .00 DEFERRED CORP. FRAN. 225,485.00 84,517.00 166.8 958,186.00 537,513.00 78.3 TO T AL STATE 4 61,151. l t. 254,997.29 83.4 2.389,341.62 2,054,061.46 16.3 LOCAL .

MUNICIPAL PROPERTY 6,738,750.00 6,448,390.56 4.5 40,426,174.54 3 8, T 25. T 81.2 9 4.4 TOTAL 10,430,371.10 8,413,615.56 23.1 56,u91,308.16 52,243,862.65 8.9 1THER INCOME FEDERAL INCOME TAXES .00 .00 .00 .00 EXTRAORDINARY ITEM .00 .00 .00 .00 DEFERRED .00 .00 .00 .00 STATE .00 .00 .00 .00 CORP FRANCHISE .00 .00 .00 .00 OEFERRED CORP. FRAN. .00 .00 .00 .00 LOCAL .00 .00 .00 .00 MUN IC IP AL PROPER TY 22,150.00 32,400.00 ( 31.63 117,310.31 194,400.00 ( 39. 7)

TOTAL 22,150.00 32,400.00 ( 31.63 111,310.31 194,400.00 (39.7)

TOTAL TAXES 10,452,527.10 8,506.015.56 22.9 $t,008,619.0T 52,438,262.65 8.T 1A.

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RESPONSE #2 AUGUST 1978 EARNINGS RESULTS

STATEMENT OF. INCOME FOR M O N Til 0.F AUGUST 1978 - -

ACTUAL RR Etsi M Gt4T il ACTUAL YEAR TO DATE . .

IH15 Y E,% LASI YEAR _INC Till 5 YE AR LASI YEAR _INC -

IPER AT it4G R EVENUE S ELECTRIC 52,171,003.60 50,318,476.04 3.7 379,136,551.72 348,925,216.62 8 '. 7 -

STEAM 2,348,620.16 2.562,966.64 (8.41 26,072,301.22 28,435,976.78 (8.31 OTHER 624,872.21 977,253.12 (36.1I F,019,405.1i 8,362,93T.96 (6.5, TOTAL $5,145,295.91

  • 53,050,695.00
  • 2.4 413,02'3,418.11
  • 305,124,131.36
  • l.1 IPERATING EXPENSES i OPERATION 27,012,576.45 29,3S6.081.41 (0.13 219,55T,265.63 20 F ,831,5 2 5.11 5.6 MAINTEt4ANCE I,101,601.18 3,041,104.33 (44.01 21.940,909.24 2 2, 31 T,6 2 8.5 7 (1.71 SUBTOTAL 2 ti .114 ,10 3. 6 3 32,4 31.1 H 5.14 (11.5) 241,490.254.81 230,149,153.68 4.9 DEPRECIATION 3.823,479.00 3,720,000.00 2.6 30,58T,829.00 29,024.000.00 2.6 TAXES 12,57T,618.82 10,123,554.32 24.2 81,760,089.94 73,115,624.08 11.8 TOTAL 45,115,281.45
  • 46,280,140.06 * (2.51 353,046,173.81
  • 333,008.111.I6
  • 6.2 NET OPER A TING I NC OME 10.030,014.52
  • 1,569,955.14
  • 32.5 59,102,244.30
  • 52.635,353.60
  • 12.4 1THER INCOME NGNUTILITY OPERATIONS (1,408.90) (2,332.00) 3,002.71 (19.017.32) tJON-OP ER R EN TA L INCOME I4,324.371 (6,832.09) (139,440.961 (24.922.70)

INTEREST C OlV INCOME (.001 (.001 1,936.54 1,027.20 6.0 AL LOW F UN05 OUR. CCNST 412,009.00 53,800.06 665.8 3,072,403.00 3 7 H ,104.18 712.6 EQU. I ti EARN. OF SUB.C 59 F18.55 20,400.75 192.7 323.144.42 281,641.54 12.3 MI SC OTHER (1,513.57) 4,604.91 33,313.51 62,507.61 (46.71 3

GAIN ON SALE I.001 42,910.71 (100.0) 7,49T.49 139,980.40 (94.61 TOTAL 464,400.11

  • 112.551.54
  • 312.1 3.302,720.71
  • 026.1 120.03
  • 299.0 TOTAL INCOME 10,494,495.23
  • 7,682,507.28
  • 36.6 62,404,973.01
  • 53,461,474.43
  • 16.9 tISC INCOME DEDUCTIONS I M I SC AMOR T il A T I ON 12,834.05 12,567.83 2.1 101,893.98 95.009.72 7.2 OT HER INCOME DEOUC TS 33,312.80 5,303.63 528.1 89,330.50 52,T99.01 69.2 TAXES APPL. Oil 4FR INC. 22e150.00 32,400.00 ( 31.6) 161,610.31 259,200.00 (31.7)

MISC LOSS ON S AL E .00 20.115.88 (100.0) l .00 20,115.08 (100.01 TOTAL 68,296.05 + 10,30T.34

  • i3.04 352,H34.19
  • 421,124.61
  • t!I.43 INC BEFORE INT CHRGS 10,426,190.30
  • i,612.119.94
  • 3F.0 62.132,138.22
  • 53,034,349.02
  • 17.2 lNTEREST CHARGE S INT ON LONG TERM OE6T 4,271,888.70 3,994,215.83 7.0 32.226,596.18 31,500,947.60 2.0 OTHER INTEREST 1,076,590.21 622,953.24 72.8 6,803,277.27 4.T82.765.37 42.2 AIUDC 60RROWE0 FUNDS (961,355.001 (663,530.72) (7,169.127.00) (4,663,274.208 AMORT OF NET PREMIUM 2,004.31 1,969.49 42.4 22,287.94 22,120.01 (1.9 TOTAL 4 ,3119,923.22
  • 3,955.607.84 *  !!.0 31,803,034.39
  • 31,I23,158.16 * .5

'4ET INCOME 6.036,210.16

  • 3,656.512.10
  • 65.1 30.249,103.03
  • 21 311.191.04
  • 41.9 PREFERRED DIVIDENOS 460,200.00 460,200.00 .0 3,614,066.61 3,614,066.67 .0 PREFERENC E DIVIDEN05 825,458.34 825,458.34 .0 6,545,333.34 6,545,333.34 .0 3AL. AVA IL ABLE COMMON 4,750,611.82
  • 2,370,853.76
  • 100.4 20.029,103.02
  • 11.091,191.03
  • 00.6 COMMON DIVIDENDS 2.345,348.33 2,345,340.33 .0 10,762,186.66 17.542,r86.66 7.0 SALANCE AFTER DIVS 2,465,263.49
  • 2 5, 50 5 . <,3 *
  • 1.266.917.16
  • 16.450,995.631*

EARNINCS PER SilARE $0.42 $0.21 $1.74 $1.06 NUMBER OF SilARES 11,534,500 11,534,500 11,534,500 10,510,306 1,

MorafH UF AUGUST 1970 BOSTON EDISota COMPAt4Y STATEMENT OF 1 NCOME-CON 1RRENT MOr4 T il T I t40E0 _ ACTUAL YEAR TO DATE '

ACTUAL TitI S YE AR LASI YEAR - ( t4C THIS YEAR _ LAST YEAR INC_ .

OPEfsATIONS FEDER AL .00 lies.OM E .00 1,451,082.53 1,451,082.53 INCOME TAX 00 .00 DEFERRED l t4C OME TAXES .00 .

19.4

.00 20,353,756.52 17,051,826.00 ACCELERATED AMORT.

2,512.122.52 3,056,965.00 (17.8) 00 .00 LIBERALIZED DEPREC .00 .00 11,0T2,000.001 OTHER (134,000.001 1226,961.001 900,039.00 21.5tl,8TO.05 15,919.026.00 35.0 It4VE ST.T AX CR AOJS 4,863,244.05 2 922,965.00 66.4 2,191.151 37 7.1 TOTAL I NC OME 208,592.94 10. 2 2,335,141 32 229,91T.55 116,224.39 87,025.61 33.6 INS. CON TR I B AC T 494.97 367.24 34.8 20,000.00 14 T ,041.50 (55.4)

UtJE MP L OYM ENT TAX ACT 2,500.00 53,820.50 (95.41 10,395,044.48 30.1 HIGHWAY USE 3,185,745.60 60.0 24,049,243 76 TOTAL IEDERAL 5,096,156.5T 1,666,415.70 1,597.110.00 4.3 STsTE 285,969.00 27.8 CORPOR ATE FR At4CHISE 365.596.70 9,500.00 .0 76,000.00 54,550.00 39.3 9,500.00 421,863.76 489.259.03 (13.Cl MOTOR EXCISE 2,184.85 2,569.16 ( 15.0 ) 00

. 00 .

EMPLOYMENT SECURITY .00 00 889,871.00 87.3 SALES AND USE 157,763.00 131.7 1,666,414.10 365,596.70 3,830,694.16 3.030,i90.03 26.4 DEFERREO CORP. F R Atl . 742,878.25 455,801.16 63.0 TOTAL STATE 4.2 4.0 53,880,152.02 51,689,788.77 LOCAL 6,738,584.00 6,482,007.48 11.8 81,760,089.94 T3,115,624.0,0 MUtilC IPAL PROP ER TY 10,123,554.32 24.2 TOTAL 12.577,618.02 OTHER lt4COME . 00 FEDERAL .00 .00

.00 .00 . 00 It4COME TAXES .00 .00 i

. 00 EXTPAOROINARY ITEM .00 .00

.00 .00 . 00 DEFERPEO .00

.00 .00 . 00 l  ;

STATE .00 .00 i

.00 .00 CORP FR At4 CHI SE .00 *

.00 .00 .00 DEFERRCD CORP. FRAN. .00 .00 (37.7) 161,610.31 259,200.00 LOCAL 32,400.00 ( 31. 6) (31.11 MUtilCIPAL PROPERTY _22.150.00 32,400.00 ( 31.61 161,610.31 259,200.00 l

TOTAL 22,150.00 24.1 81,921,700.25 13,374.824.00 11.o_

12,599,168.82 10,155,954.32 TOTAL TAXFS iA.

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RESPONSE #3 SEPTEMBER 1978 EARNINGS RESULTS

. - _ . _ . _ _ m __ _ _ _ _

BO ST Ord EDISON COMPANY $TATEMENT CF CCFE FOR MONTH OF SEPTEMP ' 1978 ,

AC T U A L Cu. ,4 E lsi P C ts T H ACTUAL YEAR TO DATE

- - THI5 YEAP 1AST YEAR INC _THIS YEAk LAST YEAR INC ,

PEP AT ING P EVFtluE S '

50,060,181.86 48,5 05,6 4 T .4 7 3.2 429,196,733.58 397,430,964.09 8.0 i ELECTRIC 1,866,001.64 2,125.107.27 ( 12. 2 ) 27.938,382.86 30.561,084.05 (8.6)

, STEAM 900,229.50 999,632.24 (9.9) 8,719,714.67 9,362,570.20 (6.9)

OTHER TOTAL 52,826,413.00

  • 51.630,386.99
  • 2.3 465,854,831.11
  • 437,354.518.34
  • 6.5 l , IPER AT lt4G EXPENSE S OPERATION 24,673,312.77 26,461,417.62 (6.8) 244,230,578.40 234,292.942.73 4.2 i

t 2,746,620.92 3,066,954.06 ( 10. 4 ) 24,687,610.06 25,384,592.63 (2.7)

M AINT Et4 ANC E SUBTOTAL 27,419.933.59 29,528,371.68 (I.ll 268,918,188.46 259,611.525.36 3.6 i

OEPP EC I A T I0tl 3,023,479.00 3,728,000.00 2.6 34,411,308.30 33,552,000.00 2.6 11,471,419.30 10,017,081.69 14.5 93,231,509.24 83,132,105.76 12.1 TAxFS TOTAL 42,114,831.89

  • 43,273,453.'36 * (1.3) 396,561,005.70
  • 376,362,231.12
  • 5.4 10,111,581.11
  • 8,356,933.62
  • 21 0' 69,293,825.41
  • 60,992,29F.22
  • 13.6 -

NET OPER AT ING I NC OME iTHER INCOME (2.533.14) (2,332.801 1,269.57 (21,350.12) ,

f.ONU T IL 1 T Y OPERATIONS (24,050.00) (7,352.29) (163,498.96) (32,275.07) f40N-OPE R RENTAL INCOME 1,827.20 INTEREST & DIV INCCHE .01 (.00) 1,936.55 6.0 385,867.00 57,067.06 576.2 3,452,350.90 435,171.24 694.7 ALLOW FUNOS DUR. CCNST

E00. IN EARN. OF SUB.C- 16.61 45,068.06 (100.01 323.161.03 332,709.60 (2.9)

(2,961.89) 9,190 .26 30,351.62 71,697.87 (57.7)

MISC OTHER GAIN ON SALE (.00) 2,995.00 (100.01 7,497.49 142,975.40 (94.8) 356,338.59

  • 104,635.29
  • 240.6 3,659,067.30
  • 930,156.12
  • 293.1 TOTAL 10,467,919.70
  • 8,461,568.91
  • 23.7 72,952,892.71
  • 61,923.043.34
  • 17.8 TOTAL INCOME -

i!SC INCOME DEDLC Tlatl5 114,728.03 6.6 MISC APOR T ll A T ION 12,834.05 12,567.83 2.1 107.577.55 18.105.01 2,393.92 656.3 107,435.51 55,192.93 94.7 OTHEP INCOME DE00 CTS 5,000.00 32,400.00 (84.68 166,610.31 291,600.00 (42.9)

TAXES APPL. OTHER INC.

MISC LOSS ON SALE .00 .00 .00 20.115.98 (100.01 35,939.06

  • 47,361.15
  • 124.11 388,773.85
  • 474,486.36 * (18.11 TGTAL 10.431,980.64
  • 8,414,207.16
  • 24.0 72,564,118.86
  • 61,448,556.98
  • 18.1 liiC BE FOR E INT CHPGS INTEREST C H AR GE S INT Ote LONG TERM DE8T 4,291,889.?O 3,993,787.98 7.5 36,518,485.48 35,574.735.58 2.7 OT HER INTEREST 715,051.18 487,425.91 46.7 7,518,328.45 5,270,191.28 42.7 AFUDC 80RROWFD FUNDS (900,356.00) (703,824.72) (8,069.483.00) (5,367,098.928 AMORT OF NET PREMlUM 2,804.31 6,709.45 (58.21 25,092.25 29,429.46 (14.75 4,109,388.79
  • 3,184,098.62
  • 8.6 35,992,423.18
  • 35,507,257.40
  • 1.4 i TOTAL l6,322,591.85
  • 4,630,108.54
  • 36.6 36,511,695.68
  • 25,941,299.58
  • 41.0 NET INCOME PREFERR ED DI VI DEND S 460,200.00 460,200.00 .0 4,134,266.61 4,134,266.61 .0 PAEFERFNCE CIVIDENDS 909,791.66 908.791.66 .0 7,354.125.00 7,354,125.00 .0 S AL . AVA IL ABLE COMMON 5,053,600.19
  • 3,361,116.88
  • 50.4 25,083,304.0L
  • 14,452,907.91
  • 73.6 COMMOt1 DIVIDENDS 2,345,348.34 2,345,348.34 .0 21.100,135.00 19,989.135.00 6.1

. BALANCE AFTEF DIVS 2,109,251.85

  • 1,015,769.54
  • 166.6 3,975,169.01 * (5,435,227.05)*

Earnings Per Share $0.43 $0.30 $2.17 $1.36 Number of Shares 11,534,500 11,534,500 11,534,500 10,624,107 g,

MUNTH OF SEPTEMBER 19T8 80STON E0ISDN COMPANY STATENENT CF thCOPE-CONTINULO ACTUAL YEAR TO DA TE ACTUAL 1RRENT PONT H .

THIS YEAR LAST YEAR INC THIS YEAR LAST YEAR [l'NC OPEPATIONS .

FEDERAL INCOME -

It4C OM E TAX 1,547,828.00 .00 2.998,910.53 .00

_ DEFERR ED INCOME TAXES ACCEL EP ATED AMOR T. .00 .00 .00 .00 LIBERALIZE 0 DEPREC 2,679,758.00 3,934,328.00 (31.9) 23,033,514.52 20.986,154.00 9.8 OTHER .00 .00 .00 .00 INVEST. TAX CR A0JS 970,930.00 (134,000.001 743,969.00 (1,206.000.00)

TOTAL INCOME 5,198,516.00 3,800,320.00 36.8 26,776,394.05 19,780,154.00 35.4~

INS.CONTR IB AC T 226,411.58 167,859.13 34.9 2,561,552.90 2,349,010.50 9.0 UNEMPLOYMENT TAX ACT 464.44 200.41 131.7 116,688.83 87,226.02 33.8 HIGHWAY USE _

2,500.00 680.00 267.6 22,500.00 147,721.50 (84.8)

TOTAL FEDEPAL 5,427,892.02 3,969,06T.54 36.0 29,477,135.18 22,364,112.02 31.8 STATE CORPORATE FR ANCH ISE 388,111.00 369,415.00 5.1 2,054,526.70 1,966,525.00 4.5 MOTOR EXCISE 9,500.00 9.500.00 .0 85,500.00 64,050.00 33.5 EMPLOYMENT S E C UR I T Y 2,070.28 1,626.84 27.3 423,934.04 490,886.67 (13.6)

SAL ES AND USE .00 .00 .00 .00 DEFERRED CORP. FRAN. 386 112.00 202,836.00 91.3 2,054,526.70 1,092,707.00 88.0 TOTAL STATE 787,'93.28 583,377.84 35.0 4,618,487.44 3,614,168.67 27.8 LOCAL MUNICIPAL PROPER TY 5,255,734.00 5,464,636.30 13.8) 59,135,886.02 57,154,425.07 3.5 TOTAL 11,471,419.30 10,017,081.68 14.5 93,231,509.24 83,132,705.76 12.1 OTHER INCOME FEDERAL IWCOME TAXES .00 .00 .00 .00 EXTRAORDINARY ITEM .00 .00 .00 .00 DEFERRED .00 .00 .00 .00 STATE .00 .00 .00 .00 CORP FRANCHISE .00 .00 .00 .00 DEF ER R EO COR P . FRAN. .00 .00 .00 .00 LOCAL .00 .00 .00 .00 .

MUNIC IP AL PROPER TY 5,000.00 32,400.00 184.6) 166,610.31 291,600.00 (42.9)

TOTAL 5,000.00 32,400.00 (84.6) 166,610.31 291,600.00 142.9)

TOTAL TAXES 11,~ 4 7 6,419. 2 0 10.049,481.68 14.2 93,398.119.55 83,424,305.16 12.0' 1A.

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RESPONSE #4 & 5 BOSTON EDISON _ COMPANY FINANCI AL STATEMENTS (FOR)

PERIOD ENDING SEPTEMBER 30, 1978 s

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! FINANCIAL STATEMENTS i.g 6

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I PERIOD ENDING SEPTEFGER 30, 1978 , l I

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EXHIBIT V BOSTON EDISON COMPANY I

,, e Balance Sheets -

(Unaudited) 1 Assets 1978 __J_9)),

Property, Plant and Equipment:

Utility Plant in Service $1,536,429 51,456,976 Nonutility Property 410 2,767 166,450 119,409 j Construction Work in Progress ,,

a 1,703,289 1,579,152 fi Less: Depreciation 415,375 380,491 _;

1,287,914 1,198,661 1

! Nuclear Fuel - Net _ 37,138 44,765 Total 1,325,052 1,243,426 Investments in Nuclear Electric Companies (Note 4) 6,578 6,592 Current Assets:

Cash 16,996 15,983 Accounts Receivable - Net 94,638 80,488 Other Deferred Debits

'5,685 26,481 h Deferred Fuel Expense 22,245 32,492 -

Other 24,846 21,946 S1,517,040 $ 1,427,40S Liabilities and Capital Comon Stock Equity:

Par value, $10 per share (Note 1) S 115,345 S 115,345 ,_

Premium 129,363 129,328 Retained Earnings (Note 6) 110,864 106.071-355,572 84,631 350,744 84,602 h{

Preference Stock Cumulative Preferred Stock 82,969 82,954 >

Total Capital 523,172 513,300 Long-Term Debt:

First Mertgage Bonds (Notes 1 and 2) 446,680 506,838 Term Note Payable to Banks (Notes 1 and 2) 75,000 75,000 b.

21,360 23,000 .

Secured Notes 543,040 604,838 +

Nuclear Fuel Lease Obligation (Note 5) 39,506 g-Current Liabilities

  • Notes Payable 79,180 70,180 Other (Note 6) 144,061 75,265 b' Deferred Credits: Pur,
  • Accumulated Deferred: '

Income Taxes 148,958 128,532 Investment Tax Credit 36,166 22,460 .

Other 2,957 993,603 7,833 9C9,2 05 Total Liabilities and Deferred Credits 51,517,040 51,427,408 1

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EXHIBIT V BOSTCH EDISON CCM?ANY Ooerations for Nine and Twelve Mgnths Ended September 30, 1978 Unaudited Nine Months __

'Ne1ve Months Sept. 30, 1978 Sept 30,1977 ~ Sept. 30, 1978 Sept. 30, 197 Operating Revenues:  ;

Electric $300,450 $278,629 $392,938 $367,427 Steam 12,021 12,536 15,767 16,896 g Fuel and Purchased Power Adjustuent 144,663 136,827 197,290 173,213 K l Other 8,721 9.363 11,882 13,302 g Total 465,855 437,355 617,877 570,838 Operating Expenses:

Operation - Fuel 177,118 162,210 222,473 201,482

- Purchased Power (5,050) 2,596 5,704 5,231

- Other 71,377 69,409 93,874 91,092

' 243,945 234,215 322,051 297,805 haintenance 24,688 25,385 32,962 33,733 Depreciation 34,411 33,552 45,673 43,922 Taxes - Other Than incocie 62,045 60,293 81,189 76,220 l

- Income 31,202 22,960 43,043 33,037 .i Total 396,291 376,405 524,918 496.717 -

Net Operating Income 69,564 60,950 92,959 64,121 Other Income and Deductions:

. Allowance for Other Funds Used During Construction (Note 3) '3,458 435 3,259 1,513 Other - Net (307) 234 (563) 204 Tex Applicable to Other Income and Deductions Incom Before Interest Charges (150,)

72,565 (171) 61,448 (794) 94,6.L6,1 (119) 85,719 h.. L J.

Interest Charges: G Long-Term Debt 35,967 35,605 47,957 47,406 Nuclear Tuel Lease Obligation (Note 5) 577 577 her 7,518 5,269 9,630 6,793 f '*

. .lovance for borreved funds used during construction - credit (Note 3) (8,069) (5,367) .(11,533) (6,248 Total 35,993 35,507 46,631 47,951 L '-

25,941 37,768 --

Nat income 36,572 48,230 Preferred Dividends Provided 4,134 4,134 5,512 5,512 Preference Dividends Provided 7.354 7,354 _ 9,781 9,781 Balance Available for comon Stock 25,084 14,453 $ S2,937 $ 22,475 Comon Shares Outstanding ('Jeighted -

Average) 11.535 10,624 11,535 10,352 Earnings Per Share of Comen Stock $2.17 $1.36 $2.86 32.17 h. '. ..

w Dividends Declared Per Share of Comon Stock $1 83 S1.83 S2.44 $2.44 g

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EXHIBIT V l l

l BOSTON EDISON CONTA1.T

..S STATEMENTS OF SOURCES OF CONSTRUCTION TUNDS (Unaudited) h g

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Nine Months Ended September 30, 1978 September 30, 1977 ,

Funds from Operations $93,959 $78,479

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Funds Obtained from Outside Sources: qq-[,

Sale of Common 51,560 Sale of First Mortgage Bonds 60,000 Decrease in Term Notes Payable to Bank (60,000)

Increase in other loans and first mortgage bonds 9,856 (24,858) 9,856 26,702 ,

E Other Funds Provided (Used): ""i ;

Working Capital and other changes 16,370 (682) j[i.

Dividends declared (32,598) (31,378)

(16,228) (32,060)

Total Funds Provided $87,587 $73,121 Construction Expenditures-Plant $85,616 $73,105 @

Nuclear Fuel 1,971 16 "- ;

Total construction expenditures $8 7,58 7 $73,121 I

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EXHIBIT V BOSTON EDISON COMPA?TY Statements of Sources of Construction Funds %QON (unaudited)

(In Thousands) .

Year Ended Sept. 30, 1978 Sept. 30, 1977 . , , ,

$123,884 $109,810 Funds from Operations Funds Obtained from Outside Sources:

51,560 Sale of Common Stock .A,000 Sale of First Mortgage Bonds Decrease in Term Notes Payable to Banks 30,000)

Increase in other loans a .d 48,356 (3,858) first mortgage bonds 47,702 48,356 p e Other Tunds Provided (Used): (5,659) (3,960)

Working Capital and other changes (40,997)

Dividends declared J43,437)

(,9,096) (44,957) , _ ,

Total Funds Provided $123,144 Sil? 555 Esti i-Construction Expenditures: "*

$122,227 $100,185 Plant 12,370 (Note 5) 917 Nuclear Fuel $123,144 $112,555 Total construction expenditures , ,

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  • RESPONSE S SEC FORM 10-Q FOR QUARTER ENDED JUNE 30, 1978 h

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SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D. C. 20549 F0RM 10-Q QUARTERLY R2 PORT UNDER SECTION 13 OR 15 (d) 0F THE SECURITIES EXCHANGE ACT OF 1934 For Quarter Ended June 30, 1978 Commission file number 1-2301-2 i BOSTON EDISON COMPANY (Exact name of registrant as specified in its charter) i Massachusetts 04-1278810 (State or other jurisdiction of (1.R.S. Employer incorporation or organization) Identification No.)

800 Boylston Street, Boston, Massachusetts 02199 (Address of principal executive offices) (Zip Code)

Registrant's telephone number, including area code 617-424-2000 None Former name, former address and former fiscal year, if changed since last report.

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the '

preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.

Yes X No L

Indicate the number of shares outstanding of each of the issuer's classes of comme t L stock, as of the close of the period covered by this report.

1 Class Outstanding at June 30, 1978 i i Common Stock, S10 par value 11,534,500 shares

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BOSTON EDISON COMPANY INDEX PAGE NO.

Part I. FINANCIAL INFORMATION: (Unaudited) 1 Balance Sheets - June 30, 1978 and 1977 2 Statements of Income - Six Months Ended June 30, 1978 and 1977 3

- Statements.of Sources-of- Construction Funds - Six <

Months Ended June 30, 1978 and 1977 4 i

Notes to Unaudited Financial Statements 5

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Management's Discussion and Analysis of Statements of Income 7

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Review by Independent Certified Public Accountants 11 Report of Independent Certified Public Accountants 12 Part II. OTHER INFORMATION: 13 Signature 16 i

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PART I. FINANCIAL INFOR.'4ATION BOSTON EDISON COMPANY BALANCE SHEETS (Unaudited)

ASSETS June 30 1978 1977 Property, Plant and Equipment: (In Thousands)

Utility Plant in Service $1,530,225 $1,444,441 Nonutility Property 448 2,776 Construction Work in Progress 128,005 $ 102,062 ,

1,658,678 1,549,279 Less: Depreciation 405,757 371,648

' 1,252,921 1,177,631 Nuclear Fuel - Net 38,554 45,168 Total Property, Plant and Equipment 1,291,475 1,222,799 Investments in Nuclear Electric Companies (Note 4) 6,539 6,542 i Current Assets:

Cash 29,313 20,948 Accounts Receivable - Net 80,098 78,089 Other __

_ 22,509 22,477 Total Current Asaets 131,920 121,514 Deferred Debits:

Deferred Fuel Expense 26,816 31,454 Other 24,312 21,348 ,

Total Deferred Debits 51,128 52,802 '-

S1,481,062 $1,403,657 LIABILITIES AND CAPITAL Common Stock, par value $10 per share (Note 1) $ 115,345 $ 115,345 Premium on Cocmon Stock 129,340 129,338 Retained Earnings 104,600 105,465 349,285 350,148 Cumulative Preference Stock 84,619 84,589 Cumulative Preferred Stock 82,965 82,527 Long-term Debt:

First Mortgage Bonds (Notes 1 and 2) 506,680 506,860 Term Note Payable to Bank (Notes 1 and 2) 75,000 75,000 Secured Notes 21,360 23,000 Total Capitalization 1,119,909 1,122,124 Current Liabilities:

Notes Payable - Banks 115,180 83,680 Other 55,479 50,176 Total Current Liabilities 170,659 133,856 Deferred Credits:

Accumulated Deferred Income Taxes

117,073 Accumulated Deferred Investment Tax Credit 34,*ao 22,862 Other 18,081 7,742 Total Deferred Credits 190,494 147,677 S1,481,062 _S_1,403,657 See accompanying notes to financial statements.

I 2 BOSTON EDISON COMPANY STATEMENTS OF INCOME (Unaudited)

Quarter Ended Six Months Ended 6-30-78 6-30-77 6-30-78 6-30-77 4

OPERATING REVENUES: (In Thousands)

Electric S 93,389 S 87,194 $186,095 S175,682 Steam 3,563 3,575 9,701 9,959 Fuel and purchased power adjustment 40,324 40,543 103,429 88,729 Other 3,308 3,186 6,174 6,410 Total 140,584 134,498 305,399 280,780 OPERATING EXPENSES:

Operation - Fuel 40,357 53,524 117,693 112,093 Operation - Purchased Power 5,116 (5,502) 3,283 (4,310)

Operation - Other 23,123 23,369 47,316 45,585 68,596 71,391 168,292 153,368 4 Maintenance 8,559 9,033 17,283 16,395

, Depreciation 11,211 11,184 22,941 22,368 Taxes - Other than income 20,984 20,186 42,578 41,010 Taxes - Income 9,359 4.935 14,313 11,026 Total 118,709 116,729 265,407 244,167 OPERATING INCOME 21,875 17,769 39,992 36,613 OTHER INCOME AND DEDUCTIONS:

Allowance for other funds used during construction (Note 3) 1,313 142 2,321 275 Other - Net (370) (7) (357) (12)

INCOME BEFORE INTEREST CHARGES 22,818 17,904 41,956 36,876 INTEREST CHARGES:

Interest on long-term debt 11,988 11,858 23,978 23,592 Other 2,448 1,747 4,798 3,472 Allowance for borrowed funds used during construction - credit (Note 3) (3,068) (1,752) (5,419) (3,390)

Total 11,368 11,853 23,357 23,674 NET INCOME 11,450 6,051 18,599 13,202 PREFERRED DIVIDENDS PROVIDED 1,377 1,377 2,755 2,755 PREFERENCE DIVIDENDS PROVIDED 2,459 2,459 4,894 4,894 BALANCE AVAILABLE FOR COMMON STOCK S 7,614 S 2,215 S 10,950 $ 5,553 )

l EARNINGS PER SHARE OF COMMON STOCK $ 0.66 S 0.20 S 0.95 $ 0.55 DIVIDL';L DZCLARED PER COMMON SHARE S 0.61 S 0.61 S 1.22 S 1.22 COMMON SHARES OUTSTANDING 11,535 10,809 11,535 10,169 (weighted average)

See accompanying notes to financial statements.

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, *. o BOSTON EDISON COMPANY STATEMENTS OF SOURCES OF CONSTRUCTION FLTuS (Unaudited) .-_ .

Six Months Ended June 30, 1978 June 30, 1977 (In Thousands)

Funds from Operations S 52,049 S 45,578 Funds Obtained from Outside Sources:

Sale of Common Stock 51,560 Sale of First Mortgage Bonds 60,000 Decrease in Term Notes Payable to Bank (60,000)

Increase (decrease) in Notes Payable to Banks 6,500 (11,000)

Sinking fund payments -

. First mortgage bonds (150) (220) 6,350 40,340 Other Funds Provided (Used):

Working Capital and other changes 5,520 (22,526)

Dividends declared (21,705) (20,485)

(16,185) (43,011)

Total Funds Provided S 42,214 S 42,907 Construction Expenditures:

Plant S 42,254 S 42,898 Nuclear Fuel (40) 9 Total construction expenditures S 42,214 S 42,907 See accompanying notes to financial statements.

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BOSTON EDISON COMPANY NOTES TO UNAUDITED FINANCIAL STATEMENTS ,

i (1) Certain information and footnote disclosures, normally included in financial statements prepared in accordance with generally accepted  ;

accounting principles, have been condensed or omitted in this Form 10-Q pursuant to the Rules and Regulations of the Securities and Exchange Commission. However, in the opinion of the Company, the disclosures contained in this Form 10-Q are adequate to ma'sa the information pre-sented not misleading. See Notes to Financial Statements included in the Company's Form 30-K for the year ended December 31, 1977 for ad-ditional information relevant to the financial statemente contained herein, including information as to significant accounting policies followed by the Company (Note A) and the restatement for certain wholesale revenue adjustments (Notes F and J). l In the opinion of the Company, the accompanying unaudited financial statements reflect all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of l~

June 30, 1978 and 1977, and the results of operations and sources of construction funds for the six months then ended. i The results of operations for the six month period ended June 30, 1978 are not necessarily indicative of the results to be expected for the full year. During 1977 and 1976, the Company experienced major fluctuations in quarterly net income. (See Note J of Notes to Financial Statements i included in the Company's Form 10-K, for the year ended December 31, 1977.)  ;

On May 4, 1977, the Company issued 2,000,000 shares of common stock, S10 par value, the net proceeds from which amounted to SS1,560,000 and also issued $60,000,000 First Mortgage Bonds, Series P, 9k% due 2007, the ,

proceeds from which were applied against a note due the First National Bank of Chicago on December 31,1978 (See Part II, Item 5 in Registrant's ,

Form 10-Q dated June 30, 1977).

At the Annual Meeting held April 16, 1978, Shareholders voted to amend l the Articles of Organization to increase the authorized capital stock of the Company by 3,000,000 additional shares of Common Stock having a par value of $10 per share. At June 30, 1978, 14,534,500 shares of Common Stock are authorized; 11,534,500 shares are issued and outstanding.

(2) The aggregate principal amounts of long-term debt due in the five years 1978 through 1982 are S1,640,000, S136,648,000, S15,320,000, S1,640,000, and S16,640,000, respectively. Sinking fund requirements of $180,000 and S150,000 .

have been satisfied for the years 1978 and 1979, respectively.

(3) In 1977 the Company computed Allowance for Funds Used During Construction (AFUDC) using a method prescribed by the Federal Energy Regulatory Commission.

However, by order of February 28, 1978, the Massachusetts Department of Public Utilities (the Department) did not allow that method of computing AFUDC for l

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1 racemaking purposes. The Company is currently discussing this matter with the appropriate regulatory authorities to determine the applicable method to be used in 1978. In the meanti=e AFUDC has been recorded in the first six months of 1978 consistent with the =ethod used in 1977. Had the Company used the method-prescribed in the Department's rate order, the effect on 1978 first and second quarter earnings would be immaterial.

The annual accrual rates for the six month periods ending June 30, 1978 and 1977 were 10.3" and 8.3", respectively.

(4) The Company's investments in nuclear electric companies are accounted for on the equity method.

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BOSTON EDISON COMPAW Management's Discussion and Analysis of Statement of Income  !

Six Months Ended June 30, 1978 Versus Six Months Ended June 30, 1977 l

t For the first six months of 1978, kilowatthour sales to the Company's retail customers and for the total Edison territory increased 1.97. and i 2.0%, respectively. It is estimated that approximately 25,000,000 kilowatthour sales were lost due to the February blizzard which shut  ;

down the metropolitan 3oston area for a week and that absent such loss, l' territory kilowatthour sales would have increased 2.57.. Sales to the Company's partial requirement customers decreased 5.0?. due to the shut down of Mystic Unit #7 for maintenance, thus total Edison System sales increased six tenths of 17..

s Total operating revenues amounted to $305,399,000, an increase of r

$24,619,000 over the comparable 1977 period, as restated for certain wholesale revenue refunds. Electric revenues, excluding fuel and pur-chased prv:- adjustment revenues, increased $10,413,000, or 5.9% as summari:ed: y Karail Revenues:

Rate Increases S 8,420,000 Increase in Energy Sold 1,446,000 Total Retail Revenue Increase 9,S66,000 Sales for Resale 547,000 Total Increase in Base Electric Revenues S10,413,000 Electric fuel and purchased power clause revenue increased $16,301,000 over the same period in 1977, while stea= fuel clause revenues decreased

$1,601,000.

Operation expenses for the first six months of 1978 were $168,292,000, an increase of $14,924,000 or 9.7% over 1977. Of the increase S13,193,000 or 887. was due to the increase in fuel and purchased power expenses. '

other cperation expensas increased $1,731,000 primarily due to Union wage increases effective May, 1977 and 1978 and a manage =ent salary increase effective January 1, 1978. /

Maintenance expenses for the first six months increased $888,000 or 5.47.

due to a higher caintenance budget in the first six =e nths o f 1978.

Maintenance expense is allocated throughcut the year based on revenues.

Taxes other than ine:me taxes increased $1,568,000 primarily due t:

increased property taxes. Municipal property taxes are charged ratably throughout the year.

The ef fective income tax rates for the six months ended June 30, 1978 and 1977, are 437. and 457., respectively. The lower race in 1978 is attributable to the increase in All:wances for Other Funds Used During Construction which is not considered in competing 'iccome tax expense.

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4 Other interest increased $1,326,000 or 38*. principally as a result of increases in the prime lending rate and the reduction of bank loans in May 1977 resulting from the issuance of 550,000,000 series ? Bonds. ,

Total AFUDC increased $4,073,000 due primarily to higher monthly average construction verk in progress balances and a change in the AFUDC race.

(See Note 3 of Notes to "naudited Financial Statements).

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BOSTON EDISON COMPANY Management's Discussion and Analysis of Statements of Income Second Quarter of 1978 Versus Second Quarter of 1977 ,

Kilevatthour sales to the Company's retail customers and for the total Edison territory increased 3.47, for the second quarter of 1978 versus the second qusrter of 1977. Sales to partial requirements customers decreased 4.97,due primarily to decrease in contract sales from Mystic Unit 7, which was shutdown for maintenance during most of the 1978 second  :

quarter.

Total operating revenues amounced to $140,584,000, an increase of

$6,086,000 over the comparable 1977 period, as restated for certain wholesale revenue refunds. Electric revenues, excluding fuel and purchased power adjustment revenues, increased S6,195,000 or 77. as follows:

Retail Revenues:

Rate Increases SS,851,000 Increase in Energy Sold 1,366,000 Total Retail Revenue Increase 7,217,000 Sales for Resale (Primarily Due to Mystic (1,022,000)

Unit 7 Contract Sales - See Above)

Total Increase in Base Electric Revenues S6,195,000 Operation expenses for dhe second quarter of 1978 were $68,596,000, of which fuel and purchased power expense amounted to $45,473,000 or 66%.

Taxes other dhan income taxes increased $798,000 due pri=arily to increased property tax rates and valuations.

The effective federal and state ince=e tax rates for the three conths ended June 30,1978 and 1977 were both 45%.

Total Allowance for Funds Used During Construction increased $2,487,000 e due primarily to higher monthly average construction work in progress balances and a change in the AFUDC race. (See Note 3 of Notes to L*nsudited Financial Statements).

Other interest increased $701,000 or 407. principally as a result of an increase in the prime lencing race and the reduction of bank loans in May 1977 resulting from dhe issuance of $60,000,000 Series P Bonds.

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BOSTON EDISON COMPANY Management's Discussion and Analysis of Statements of income Second _ Suarter of 1978 Versus First Quarter of 1978 Kilowatthour sales to the Company's retail customers and for the total Edison territory decreased approximately 77. for the second quarter of 1978 over the first quarter of 1978. Sales to the Ceepany's contract customers decreased 2.57., due primarily to a decrease in contract sales fro = Mystic Unit 7 which was shutdovn for maintenance during most of the 1978 second quarter.

Total operating revenues for the second quarter decreased $24,231,000 or 15'. due primarily to decreased sales. Of this decrease fuel and purchased power adjustment revenues accounced for 947., while base revenues increased $683,000 as summarized below:

Retail Revenues:

Rate Increases $4,083,000 Decrease in Energy Sold (1,090,000)

Total Retail Revenues Increase 2,993,000 Sales for Resale (Primarily Due to Mystic Unit 7 Contract Sales - See Above) (2,310,000)

Total Increase in Base Electric Revenues S 683,000 Total operating expenses decreased S27,989,000 or 197. due principally to s decrease in fuel and purchased power expenses. Thus, net operating inco=e increased $3,758,000 or 217..

The effective income tax rates for the second and first quarters of 1978 were 457 and 417., raspectively. The increased rate in the second quarter is due principally to approximately 637. of the six =enth pre-tax income being earned in the second quarter, whereas the investment tax credit amortization is reflected ratably throughout the year.

Allowance for Funds Used During Construction increased $1,022,000 in the second quarter of 1978 due primarily to increased =onthly average con-struction work in progress balances.

Primarily as a result of fluctuations described above, second quarter net income increased $4,301,000.

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BOSTON EDISON COMPANY Review by Independent Certified Public Accountants I

The financial statements included herein as of June 30, 1978 and 1977 have been subjected to a limited review by Coopers and Lybrand, the registrant's i independent public accountants. The aforementioned financial statements include r

an, adjustments or additional disclosures proposed by Coopers and Lybrand, whose ,

report is included as an exhibit to this filing.

All accounting policies and practices have been applied in a manner consistent vich prior periods.

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  • COOPERS & LY B R A N D Ctatirige eveLsc aCOCwNtamTS a utmage rieu Cr COOmgeS & Lysmang liwigawar,C=a l w r

Board of Directors Boston Edison Company We have made a limited review, in accordance with standards established by the American Institute of Certified Public Accountants, of the balance sheet and statements of  !

income and of sources of construction funds of Boston Edison Company as of June 30, 1978 and.1977_and_for_the..three-menth and six-month periods then ended. Since we did not perform an audit exa=1 nation, we express no opinion on the financial statements referred to above. To comply with the requirements

,. of the Securities and Exchange Com=ission, we confirm the Co=pany's representations concerning proposed adjustments and discloLures included in the accompanying Form 10-Q for the period ended June 30, 1978, in accordance with the related instruction K.

t Boston, Massachusetts July 26, 1978 em e+ w .+ em=-- m% .em , --m. .

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BOSTON EDISON COMPANY PART II. OTHER INFORMATION Item 1. Legal Proceedings On May 17, 1978, the Massachusetts Supreme Judicial Court denied the Company's petition for stay of the proceedings before the Department of Public Utilities on its investigation into the capacity needs of the Company and the construction program required to meet such needs. (See Form 8K dated April 18, 1978).

On May 19, 1978, the Company amended an October 1975 Settlement Agreement with Atlas Corporation. This agreement dismissed the suit filed by the Company on February 6,1978 against Atlas Corporation in the United States District Court for the District of Massachusetts. This suit had sought specific performance of the October 1975 Settlement Agreement (See Registrant's Form SK dated February 6,1978). The Amended Settlement Agreement of May 19, 1978 releases and discharges Atlas Corporation from the performance of the October 1975 Settlement Agreement and provides for the purchase and sale of approximately 2,186,500 pounds of uranium concentrates and giving the Company options to purchase up to 1,500,000 pounds more.

On May 25, 1978, the Atomic Safety and Licensing Appeal Board affirmed the Atomic Safety and Licensing Board's denial of our application for a limited work authorization - based on a finding that the Nuclear Regulatory Commission (NRC) staff had not conducted an adequa*.e review of alternative sites. We will not appeal that decision; additional documentation on alternate sites is being prepared by the NRC staff.

The Company's request for a rehearing of the Massachusetts Supreme Judicial Court's April 19, 1978 decision on our 1975 and 1976 rate case appeal was

  • denied and the Company intends to seek review by the United States Supreme Court. (See Notes of Netes to Unaudited Financial Statements included in Form 10-Q dated March 31, 1978.)

On June 27, 1978, the Massachusetts Supreme Judicial Court issued a decision granting the Company an additional $3.86 million in interim rate relief. l The increase is subject to refund pending the Court's final decision on the Company's appeal from the Department of Public Utilities' 1978 rate order.

On July 26, 1978, an initial decision from the United States Environ = ental ,

Protection Agency approved the "once-through" cooling system for Pilgrim  !

No.1 and 2 in the Company's National Pollutant Discharge Elimination System permit. The decision found that Pilgrim 1 and 2 can operate without threat-ening the protection and propagation of the shellfish, fish and wildlife populations affected by the proposed discharge.

Item S. Increases in Amounts of the Company's Outstanding Securities or Long-Term Debt j On August 1, 1978, the Company entered into a nuclear fuel lease and security agreement with PruLease, Inc. whereby the Company vill be able to finance the i acquisition costs of nuclear fuel up to a max 1=um amount of S50,000,000. On August 3, 1978, initial proceeds of the financing in the amount of $38,390,741 were received by the Company. The proceeds were applied to the reduction of short-ter= borrowings incurred in connection with extensions, additions and improvements to the Company's plant and properties. Principal vill be paid quarterly, beginning January 25, 1979, on the basis of nuclear fuel burnup.

Interest, at a race equal to Prulease's ninety-day commercial paper rate plus i 1-1/87., will be paid monthly. Title to the nuclear material shall be retained or reserved by Prulease, Inc. only if necessary, and only to the extent re-  !

s_____.____ quired, for the purpose of making fully effective and perfecting its security interests which is subject to the lien of the Indenture securing the Company's i First Mortgage Bonds; however, the Company is considered owner for all other purposes including accounting, tax, utility regulation and rata =aking. Pru-t lease, Inc. will be able to terminate the agreement on two years notice. After i j the first year, the Cocpany has the caght to terminate the agreement on thirty days notice. l l k Item 7. Submission of Matters to a Vote of Security Holders  ;

I (c) At the Annual Meeting held April 16, 1978, Shareholders voted to amend the Articles of Organi:ation to increase the authori:ed capital stock of the Company by 3,000,000 additional shares of ce= mon stock having a par value of $10 per share. (See Note 1 of Notes.co Unaudited Financial ,

Statements included in Part I of this For= 10-Q.)

The votes cast with respect to this proposal were as follows:

6,814,473 Affirmative 560,772 Negative 7,375,245 Total B

In addition, Shareholders voted to authori:e the Board of Directors to mortgage all or substantially all of its property, including its franchises, in connection with the issuance of additional first mortgage bonds.

l The votes cast with respect to this proposal were as follows:

i l 5,921,316 Affirmative ,

811,609 Negative 6,732,925 Total l

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Item 9. Exhibits and Reports on Form 8-K (b) Reporti on Forms 8-K Date of Earliest Date Item Event Reported Filed No. Items Descriptions 4-18-78 5-8-78 5(a) The annual meeting of the shareholders of the Registrant was held on April 18, 1978.

(Reference is made to Item 7 of this Form 10-Q . )

5(b) By decision dated April 19, 1978, the Massachusetts Supreme Judicial Court issued its decision in the Registrant's appeals from the orders cf the Department of Public Utilities to the 1975 and 1976 retail rate cases. See Item 8 of Form 10-Q for the quarter ending March 31, 1978.

5(c) The Registrant filed a petition with the Massachusetts Supreme Judicial Court to stay the proceedings before the Department of Public Utilities on its investigation into the capacity needs of the Registrant and the construction program required to meet such needs.

5(d) On April 26, 1978, the Federal Energy Regulatory Commission approved the Registrant's Settlement Agreement with the Reading Municipal Light Board.

5(e) At a regular meeting of the Board of Directors on 4-27-78, quarterly dividends en the Registrant's preference stock were voted.

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i SIGNATURE  !

i Pursuant to the require =ents of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf i by the undersigned thereunto duly authorized. i l

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L l,

I BOSTON EDISON COMPANY (Registrant)

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Date: August 11, 1978 4

/S/ Joseph P. Tyrrell "

Joseph P. Tyrrell Senior Vice President (Chief Financial Officer)

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