ML20084E869

Annual Financial Rept 1983

ML20084E869
Person / Time
Site:	Callaway
Issue date:	12/31/1983
From:	Cornelius W, Dougherty C, Schnell D UNION ELECTRIC CO.
To:	Harold Denton Office of Nuclear Reactor Regulation
References
ULNRC-806, NUDOCS 8405030033
Download: ML20084E869 (42)

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• demonstrates the complexity of providin0 reliable Mjelectric MIkld;..M '. ,"

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employees are of switches daily callin0 for electricity. our customers cj millions i 7

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Investment Review 1 ML . ;[

Year Ended Annual increase Ilid/Ilid/ttN December 31,1983 Current Year 10-Year Average Earnings per Average Common Share. $ 2.66 22.6 % 6.4 %

Dividends per Common Share. S1.66 5.1 2.7 Common Stockholders-Year End. 192,833 2.9 6.0 Dividend Reinvestment Participants. 61,636 19.7 16.4 Residential Kilowatt-Hour Sales 8,978,778,000 13.6 4.3 Total Kilowatt-Hour Sales 25,928,578,000 7.6 2.5 Operating Revenues. S1,401,086,000 15.1 13.0 Operating Expenses S1,160,816,000 14.6 14.4 Property and Plant (gross)-Year End SS,858,554,000 12.9 10.5 Capitahzation Provided by Investors. S4,200,780,000 10.8 10.4 l

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m! JEm gncreased sales and higher electric rates combined to produce Icommon stock earnings in 1983 of $2.66 per share, which was an improvement of 49 cents over the $2.17 per share earned in 1982.

Kilowatt-hour sales for the year v<ere up 7h percent over 1982, with residential sales showing a dramatic 14 percent increase, reflecting the extremely hot summer. Commercial and industrial sales were up 4 percent and 5 percent, respectively. Significantly, record summer and winter peak demands for electricity were estab-lished during the hot 1983 summer and the severely cold December which followed.

In the fourth quarter, the quarterly dividend on common stock was increased by 2 cents per share, bringing the annual rate to $1.72 per share.

Of importance is the fact that 55 percent of the dividends paid on our common stock during 1983 are considered a return of capital

---m under the Internal Revenue Code and, as such, are not taxable as "E dividend income. Furthermore, the Company currently estimates "Kiltnentt hour sales... e of its common dividends will be teere up 7b%...tcith that higher theinnontaxable 1984 than inpercentag' 1983. Preferred dividends in 1983 and 1984, resitlential sales however, will be fully taxable.

shrneind n alrontatic A s its construction nears completion, our Callaway Plant con-1-l% inereuse..." At tinues on the schedule and budget announced in August 1982.

Significant testing and licensing progress was achieved in 1983, and we expect to load fuelin the Spring and to begin commercial opera-tion in late 1984 or early 1985. We are convinced that this $2.85 billion, 1,150 megawatt, nuclear plant will provide a reliable, reasonably-priced, and environmentally advantageous source of power genera-tion for many years to come.

With the objective of achieving timely regulatory approval of electnc rates which include the effect of the Callaway Plant as soon as it goes into commercial operation, the Company recently filed requests for electric rate increases in Missouri and Illinois.

As many of you will probably recall, after construction of the Callaway Plant had been started, voters in Missouri adopted an initiative petition which prohibited the normalinclusion in rates of financing (or " carrying") costs dunng the construction period An inevitable result of that enactment was a significant rate increase for customers when such postponed and accumulated costs would finally be included in electric rates. In other words, the resulting capitalization of such carrying costs has enlarged considerably the yg magnitude of the rate increase required by the plant addition. In fact, these carrying costs will amount to approximately 36 percent of the

• ,#.t he phase in plan total Callaway Plant cost-and about one-half of the increase over is appr(tretl, the the $900 million preliminary cost estimated in 1975 prior to the Crnnptniy's rates teffl beginning of construction.

continue to he kneer gn its recently-filed rate increase requests, the Company pro-than the national s poses to lessen the impact on its customers by phasing in, over a n rerade.. ."

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five-year penod the increase in electric rates that will be necessary when the Callaway Plant goes into commercial operation. Under the proposed plan, electric rates would increase by approximately 25 percent the first year and by about 8 percent in each of the succeeding four years. If the phase-in plan is approved, the Company's rates will continue to be lower than the national average for large metropolitan areas.

In October the Missouri Public Service Commission refused to include in our electric rates the costs associated with the 1981 cancellation of the second unit at the Callaway Plant. The Commission

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Dawd its decisto" cn a state statute ce th"q .wtr tne issua of Con-struction work-!n progress Noting tnat there is no case law on this particuntr statute the Commission sa!d that its deC'sion would preseruf the status Quo pending an apoea' which wul give the Commissu;n guidance by a court of law The Company has aopealed the decision At sear end our utuity subsidiaries Missourl Power & Light Company Missour< Utilities Company and Mtssouri Edison M- M Com pa n y were merged into the Compa"y

' ..tlle tplurterly n summary 1983 was a good year Sales earmngs and

</tritlerf el oil cortlnitirl fdotdends were at record highs The prooress at the Callaway stock t"us irlercaserl Rant was a:so a vers positive accomphshment of 'he year just com

/>ritidirld tile artilliol C +4 ted I hat ,s the record of your management and empioyee team rate to Sl. 72 per 3l lore. l ': tact .i record and a team that justifies confidence in our

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Business Review s Mf M arnings for common stockholders in 1983 were $2.66 per share-EarniildN l'er S/ltire a substantialimprovement over earnings of $2.17 for the prior year.

lledell flidlier l,ccel The 49 cents per share gain resulted primarily from increased sales and higher electric rates, partially offset by increased operating costs.

NI M Muarterly dividends were increased by 2 cents per share in the fourth f)itifleil(IN llHprote, Wouarter, bringing the annual rate to $1.72 per share. This change jIU.Ig, TU#lTCC m de 1983 the eighth consecutive year in which the common dividends paid were greater than had been paid in the preceding year.

Fifty-five percent of 1983 common dividends are considered a return of capital under the Internal Revenue Code and as such, are not taxable as dividend inemme. The Company currently estimates that the nontaxable percentage of its common dividends will be higher in 1984 than in 1983.

Preferred stock dividends in both years, however, are fully taxable.

Mi 8F'he Company's Dividend Reinvestment and Stock Purchase Plan f)jejgfengl 5 continues to grow in popularity. Capital raised through the Plan in lleiHCcNIHicHIN 1983 totaled $55 million. At year-end there were 61,636 stockholders participating in the Plan, including 5,513 customers who had not previously

('OHlinHe 7I) been shareholders. S!nce its introduction in 1976, this program has pro-lHerenNe vided the Company with more than $169 million of equity capital.

Union Electric's Plan permits automatic reinvestment of dividends on the Company's common and preferred stock in newly issued shares of common stock at prevaikng market prices. The Plan also provides for the purchase of newly issued shares of Union Electric common stock through optional cash payments ranging from $10 to $5,000 monthly. Each pur-chase under the Plan is made without payment of any commission or service charge.

The Economic Recovery Tax Act of 1981 provides special treatment for stockholders participating in d.vidend reinvestment programs of qualified utilities such as Union Electoc. This law permits eligible indi-vidual stockholders to exclude from taxable incomo up to an aggregate of

$750 annually ($1,500 in the case of joint returns) of dividends rein-vested in common stock of qualified public utikties during the years 1982 through 1985.

3 ilowatt hour sales and peak demands for electncity established Sules Antl enf several new records in 1993. Most impressively, sales to residential llelHuiHIN l'.,Ntul>llN/l electnc customers were up 14 percent-a substantialimprovement over the pnor year, pnmanly reflecting the impact of the extremely hot 1983 hew liecortl8 summer. Commercial sales of electncityincreased by 4 percent over 1982.

Sales to industrial electric customers rose 5 percent above 1982-the greatest increase since 1977. This solid improvement confirms that the economic recovery prevalent throughout the country is also occurnng in our service area. The overall effect of the greater use of electncity by all classes of customers was a 7S percent increase in kilowatt-hour sales dunng 1983 over the pnor year.

The importance of electricity in our personal hves was emphasized dunng the extended heat wave in July, August and September of 1983, and dunng the intensely cold December which followed. Our summer peak demand reached 6,598,000 kilo vatts in 1983, approximately 3 percent above the prior all-time record, w hile our December demand for power also set a new record of 5,148,000 kilowatts, or 12 percent above the previous winter peak.

We are particularly proud of our employees' performance and the teamwork demonstrated during these penods of extreme weather. Power plant workers, line crews and support personnel worked long hours-often under difficult and hazardous conditions-to supply the electnc power essential to the communities we serve.

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Husiness Review 1

!IM lectric heat is the cleanest heat available and has also become more filectric fle(Itill*a popular because of the higher costs of natural gas and fuel oil.

/tlpill(trify (11TMON Furthermore, this cost advantage is expected to continue for the foreseeable future. Increased use of electric heat is especially important because it enables the Company to utilize, during the winter months, facilities that have been built primarily to supply the high demands for summer air conditioning.

In 1983 the electric heating load connected to the Union Electric system reached 2.7 milhon kilowatts. Electric heat was installed in 63 percent of all new commercial buildings and apartments, and in 30 percent of all new homes in the Company s service area. More than 7,600 residential electnc heating instaliations were added to the Company's lines in 1983, and at year-end, over 90,000 customers heated their homes electrically. In addition, more than 15,000 commercial and industrial structures used electric heat.

M1 3 gtonstruction of the Callaway nuclear plant is more than 95 percent (2(ill(itetty Nitcle(tr wcomplete with testing and start-up operations in the final stages prior pf(filt sgppiV)(te7leh, to fuel-loading. Assuming continuing favorable test results, we expect to load fuel this Spring and to begin commercial operation late in 1984 or (I()illplCll()?! shortly thereafter. Without Callaway, our reserve generating capacity would be about half the minimum level needed for reliable operations in 1985.

This clearly demonstrates the need for this plant. The estimated cost of the Callaway unit is $2.85 billion-as announced more than a year ago, We believe that this investment will provide an economical and environmentally-advantageous power generating facility through this century and beyond.

MI M n July, the Missouri Pubhc Service Commission granted a rate increase lilCetric lhtte hierC(18CN of $30.5 milhon, on an annualized basis, for Union Electnc's Missouri j,s,f./CCIC'7 7il I'l8'g electric customers. and. in June, electric rate increases aggregating more than $10 million, annually, were granted by the Ill!nois and lowa regulatory commissions. These rate char jes were necessary to cover our increased costs of doing business in 1983.

M1 Z1 8F'ho most important rate increase requests in the Company's history (l(flltitetty /Ulte were filed in February 1984, with the Missouri and Illinois commis-sions. in anticipation of the commercial operation of the Callaway nuclear llc (/flCNfNlileillli plant. The requests include a proposed rate phase-in plan that would lessen 8(f rly 18)S l

' the impact of the rate increase on the Company's customers by spreading the increase over a five-year period.

Under the proposed rate phase-in plan, electric rates would increase by approximately 25 percent the first year ($246 million and $33 million for Missouri and Illinois customers, respectively) and by approximately 8 percent in each of the following four years. The rate phase-in plan will result in lower cash receipts in the early years, although there will be no effect on reported earnings. Without the rate phase-in plan, the Company would require an increase in Missouri electric rates of approximately

$639 milhon or 65 percent, and an increase in liknois electnc rates of approximately $78 milhon or 59 percent. If the rate phase-in plan is adopted.

Union Electnc's rates are expected to remain below the national average for large metropolitan areas.

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Husiness Review e N? uM Hnion Electnc's 1983 construction program totaled $686 milhon bill (litelilg w Oncluding $244 milhon apphcable to the noncash allowance for funds used dunng construction) and was financed primanly through the 4c(/Ilireillellt8 issuance of new secunties. We expect our 1984 construction program to

'2Xf) Cele (I 'It) l)celille be financed substantially f rom external sources; however, after the com-pletion of the Callaway nuclear unit, we expect for the foreseeable future to provide all funds for construction from intemal operations.

The Company raised more than $316 milhon dunng 1983 through the issuance of. $100 milhon of 13 percent first mortgage bonds in March;

$75 milkon of additional preferred stock, with an 11.92 percent annual dividend rate,in June; and, six milhon shares of common stock in November, providing $86 6 milkon. This latter amount, when added to the

$55 milkon obtained through the Dividend Reinvestment and Stock Purchase Plan, provided more than $141 milkon of new common stock capital during the year.

It is currently estimated that it will be necessary to raise more than

$300 milhon to finance 1984 additions to property and plant, with the greater part of that hkely to be raised through environmentalimprovement debt. the Dividend Reinvestment and Stock Purchase Plan and the nuclear fuel lease.

i j sy'he new Power Operations Training Center, which was placed in V/ej//s 'lillid/II N service in September 1982, is now providing skills training to tech-It A,ew (lellter nicians and other maintenance employees who work in the power plants.

in addition, special training classes have been provided to meet specific needs of other employees.

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highhght of the year in research and development was the completion ltsllff)(flly (lt>llfilllicN of construction and the start-up of the KILnGas coalgasification

/t) litrest /11/(CNe(f rell plant in East Alton, liknots. This facihty was built as a prototype to demon-strate the technology for the conversion of high-sulphur coal to a clean-Irl(ll)eceltiflillellt burning, low BTU gas which is suitable for use in a combustion turbine combined cycle piant in addition to Union Electnc. the sponsors are Alks-Chalmers, the State of Ilknois. the Electnc Power Research Institute and eleven other electnc utikties It is expected that a full-scale demonstration run will be completed dunng 1984. The Company pledged $6.6 milhon to support the project.

Union Electnc's commitment to research and development is demon-strated by our support of the Electnc Power Research Institute (EPRI).

We pool our research dollars with more than 450 other electric utikties across the country to fund EPRI's development of technology options for better production, transmissen, distnbution and utihzation of electnc power.

Dunng 1983 we corinbuted $4 3 million to EPRI s research and development efforts, Overall. about 1,500 research projects are currently under EPRI's management, representing a national funding authorization in excess of $1.9 bilkon over five years.

Through membership in EPRI, Union Electric maximizes its return on every R& D dnllar, avoiding costly duphcation of research and allowing for extensive R & D projects far beyond the financial capabihty of any one utlhty.

Af ter successful testing, the Company received approval from state and federal authonties to incinerate 5 percent concentrations of polychlor-inated biphenyl(PCB) hquids in a power boiler at Labadie Plant. This innovative technology provides a safe method of permanently disposing of PCB-type electncalinsulating oils, while at the same time recovenng energy from waste.

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Business Review 11 EIE A building boom continues in the Company's service area with in-3/@)r CoHNtruction M vestments of around $2 billion in new office buildings, plants and 1;,HhunecN Area condominiums.

in downtown St. Louis, Southwestern Bell Telephone is constructing a

$120 million,44-story office tower; construction has started on St. Louis Centre, a $120 million retail mall with a $42 million,21-story office tower on top; and the $35 million St. Louis Place office tower was recently com-pleted. Work began during the year on the $135 million renovation of Union Station into a hotel retail and entertainment complex. The 30-story,

$98 million Broadway Tower, the $30 million Edison Brothers Stores, Inc.

headquarters and the $90 million Adam's Mark Hotel are either under construction or scheduled for groundbreaking soon. '

In St. Louis County, the 1,500-acre Chesterfield Village is about one- i sixth developed with a total capitalinvestment to date of more than i

$350 million. About 1.2 million square feet of retail / commercial space and  ;

an additional 1.3 million square feet of office space are either under con- l struction or completed. Among the major developments are the 1983 completion of the 160.000 square-foot Famous-Barr department store in Chesterfield Mall Shopping Center, construction of the first building of Monsanto's 2.6 million square-foot Research Center development and )

completion of Roosevelt Federal Savings and Loan's 120,000 square-foot headquarters facility. Nearby at the Maryville Center, construction has started on a 150.000 square-foot office building, the first of about a dozen planned in the 1.3 million square-foot project. In mid-1984 construction  ;

is scheduled to start on Riveroort, a 3300-$500 million retail, office and industrial park covering 370 acres.

The $500 million General Motors Wentzville. Missouri auto assembly plant, which has 78 acres under roof, was completed and began production of new cars late in 1983.

In Cape Girardeau, Missouri, a $50 million animal food supplement plant is nearing completion and will begin operations in 1984.

Construction of a 440-room hotel complex by Lodge of the Four Seasons at the Lake of the Ozarks is scheduled to start in early 1984 and a large number of condominiums continue to be built in the Lake area.

i EE ew labor agreements, effective through June 1985, were executed l,0bor AdrecincHtN during 1983 with all of the unions representing Union Electnc employees. These agreements provide for wage increases of 5 percentas of

/?xtelHl ThroH4h July 1,1983 and July 1,1984, and include improvements in retirement 3/itl1985 and medical benefits. Labor agreements with our recently merged sub-sidiaries are continuing in effect through their contract expiration dates.

M' 1 At year-end, our utility subsidiaries. Missouri Power & Light Company, f 3/erderlitIccre(f MMiss uri Utilities Company and Missouri Edison Company, were merged into the Company.

MT 2M ice President Morle T. Welshans, who had headed the Finance

/?xcentice clunineN Function, and Vice President and Controller James T. Friel retired during the year. Charles W. Mu ?ller, who had been Treasurer, was elected a llHrlHM 1983 Vice President to succeed Mr. Welshans, and Donald E. Brandt, who had been with Price Waterhouse, was appointed Controller. Also elected Vice Presidents were: Charles J. Schukai who is in charge of Regional-East; David C. Harrison, who was President of Missouri Power & Light and Missouri Edison prior to the merger, and is now in charge of Regional-West; and, Francis R. Lengefeld, who was President of Missouri Utilities before the merger, and is now head of the Engineering & Construction Function, succeeding Howard N McCoy who retired. Lawrence A. Esswein was elected Treasurer, succeeding Mr. Mueller, i

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12 Responsil>ility For Financial Statements _ _ _ .

m?rt . . ._, M r The management of Union Electric Company is The Board of Directors. through its Auditing Ccmtr ;ttee [

responsible for the information and representations composed of outside directors, is responsible for  ;

1 contained in the financial statements and in other sections ensuring that both management and the independent ,

i of this Annual Report. The financial statements have been accountants fulfdl their respective responsiL'hties relative prepared in conformity with generally accepted to the financial statements. Moreover, the independent accounting principles consistently applied. Other informa- accountants have full and free access to meet with the l tion included in this report is consistent, where applicable, Auditing Committee, with or without management present.

l with the financial statements. to discuss auditing or financial reporting matters

] T he Company maintains a system of internal accounting controls designed to provide reasonable assurance as to the integrity of the financial records and the protection d of assets Quahfied personnelare selected and an  !

organization structure is maintained that provides for appropnate functional responsibikty. Wntten pohcies and procedures have been developed and are revised as necessary The Company maintains and supports an i i extensive program of internal audits with appropnate i management follow up. )

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. Report Of_Intlepenclent Accountants i . h._

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ONE CEN f ERRE PLAZA l ST LOUti MO 63101 I i _ a UkiC _

314 425 0500

'ater 3OUSC reemry a m4 l

l l To the Stockholders and Board of l Directors of Union Electnc Company In our opinion. the accompanying consohdated balance sheet and the related consolidated statements

of income. preferred stock, long-term debt, retained earnings, other paid in capital and changes in financial position present fairly the financial position of Union Electnc Company and its subsidianes at  ;

j December 31,1983 and 1982, and the results of their o , rations and the changes in their financial

! position for each of the three years in the penod ended Lcember 31.1983. in conformity with generatiy l accepted accounting pnnciples consistently applied Our examinations of these statements were madt to I accordance with generally accepted auditing standards and according!y included such tests of the

! accounting records and su-h other auditing procedures as we considered necessary in the circumrtances i

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COllSOlit$UlCil hittitelltellt Of $18COlllC(Thousandsof Doitars) 13 M2:W:. 2's -

Union Electric and Subsidiarios _

Year 1983 Year 1982 Year 1981 Opror; ting Revenues (*): Electnc . S1,281,154 $ 1,111.855 $1,019,671 Gas. 104,899 90,213 72,861 Steam . 12,270 13.224 11,033 Water 2,763 2,413 1,971 Total operating revenues 1,401,086 1,217,705 1,105,536 Operating Expensos: Operations Fuel and purchased power. 437,579 372,632 356,887 i Other 259,536 230,751 200,506 697,115 603,383 557,393 Maintenance 99,395 100,223 87,435 Depreciation 92,297 86.670 81,310 Income taxes . 140,111 97,967 79,381 Other taxes (*) . 131,898 124,811 117.128 Total operating expenses 1,160,816 1,013.054 922,647

' Operatira locomo _

240,270 204.651 182,889 Oth:r incomo: Mowance for equity funds used during cons ruction . 135,707 93,858 64,600

, Miscellaneous, net 3,490 3,660 (734)

Total other income 139,197 97,518 63.866 inc:ce Soforo Interest cnd CINr items 379,467 302.169 246,755 Int:r:st and Other ltoms: Interest on debt. 218,530 200,554 180,312 Allowance for t;orrowed funds used dunng construction . (115,600) (104,235) (91,025)

Preferred dividends of subsidianos 382 384 385 Totalinterest and other items 103,312 96,703 89,672 N;t incomo 276,155 205,466 157,083 Pr:f:rred Dividond Requirements of Company 45,736 39,960 29.478

, Earnings on Common Stock S 230,419 $ 165.506 $ 127.605 i (* j inc'uck s hcenso and f rano o r,i,m t, K1' 82 000 161002 000 and 154 t/A 000 for tN pc. irs 14;'13 M? md 1981 reux;c'veif Earnis.gs por Share of Camraon Stock

(,n;mi on average shares outstandinq) e $2.66 $2.17 $ 1.00 Divid:nds por Share of Common Stock S1,66 $158 $ 1.52 Avorago Number of Common Sh:ros Outstanding 86,744,282 76.251,024 67,179.275 I

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14 Corusoliclcitect 13cticuruce Slueettinousanas os ooiiars, m iT: .;- .M oecember 31, December 31, Union Electric and Subsidiaries 1983 1982 ANNets Property and Plant, at original cost: Dectric. 63,231,495 $3,075,484 Gas. 77,326 73,551 Steam . 9,311 9,593 l Water. 8,606 8,221 Other. 19,283 19,479 l

1 3,346,021 3,186,328 Less accumulated depreciation. 1,062,765 984,656 2,283,256 2,201,672 Construction work in progress:

Callaway nuclear plant. 2,374,392 1,809,397 Nuclear fuel . 188,106 169,553 Settlement of uranium litigation. (101,963) (89,407)

Other. 51,998 114,908 Total property and plant, net 4,795,789 4,206,123 Investments, at cost 6,354 5,605 Deferred Charges: Callaway unit 2 construction abandonment. 82,394 82,826 Unamortized bond defeasance cost. 4,270 4,470 Unamortized debt expense. 4,542 4,860 Other. 3,124 2,292 Total deferred charges 94,330 94,448 Current Assets: Cash. 7,216 4,555 Deposits for payment of interest and other deposits. 10,272 32,655 Accounts receivable-trade (less allowance for doubtful accounts of $2,681 and $1,622, at respective dates). 95,579 85,629 Unbilled revenue. 73,876 54,042 Other accounts and notes receivable. 4,927 6,622 Materials and supplies, at average cost-Fuel . 73,889 09,006 Construction and maintenance. 37,947 37,188 Prepayments and other assets. 5,377 4,924 Total current assets 309,083 324,621 Total Assets S5,205,556 $4,630,797 See Notes ta nnancial Statements on pages 22. 23. 24 and 25 .

f 15 December 31, December 31 Union Electric and Subsidiarios 1983 1982 Capital Aml Liabilities C:pitalization:

C:mmon stock and Common stock, $5 par value, authorized r;tained earnings 150,000,000 and 100,000,000 shares, at respective da'es; outstanding 94,690,220 and j 84,413,679 shares, at respective dates (excluding 42,990 shares at par value in treasury). S 473,451 $ 422,068 Other paid-in capital, principally premium on common stock (see accompanying statement). 637,039 541,222 Retained earnings (see accompanying statement). 445,011 364,771 Total common shareholders' equity 1,555,501 1,328.061 Pr;ference stock . Preference stock, $1 par value (entitled to cumulative dividends), authorized 7,500,000 shares-none outstanding Pr:ferred stock Preferred stock not subject to mandatory redemption, including premium of $1,486 and $1,571, at respective dates (see accompanying statement). 356,270 281,355 Prc' erred stock subject to mandatory redemption (see acccmpanying statement). 180,962 182,988 Leng-term debt Long-term @b!(see accompanying statement). 2,113,181 2,005,398 Unaraortized discount and premium on debt. (5,134) (4,993) l _

Tota! capitalization 4,200,780 3,792,809 f Accumulated Deferred Taxes I

cn income ,_

408,171 328,580 Accumulated Defgtrecf investment Tax Credits 6> -

164,468 122,217 Construction Commitments and Contingencies (Notes 8 and 9)

,J l '

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CurrInt Liabilities: Current maturity of long-term oebt. 10,728 2,223 Accounts payabie. 154,953 117,199 Wages payable. 20,608 20,010 Oallaway unit 2 cancellation charges. 41,885 45,969 Bank loans. . /. 31,500 42,100 Commercial paper. - 25,000 Income taxes accrued. 41,281 27,919 Other taxes accrued. 15,620 14,287

., Mterest accrued. 63,755 46,621

"*_ // ' Evidends declared.

, 12,512 10,328 Other current liabilities. 39,295 35,535

-Total current liabilities 432,137 387,191 T; tat Capital and Liabilities 5 $ 5,205,556 $4,630,797

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M December 31 December 31.

Union Electric and Subsidiaries 1983 1982 Pr:ferred Stock not subject to mandatory redemption:

Union Electnc Company Preferred stock, without par Stated value of shares outstanding, value (entitled to $100 per share-cumulative dividends)- $7.44 Senes-550.000 shares. S 55,000 $ 55,000 note (a) $6 40 Senes-300.000 shares- 30,000 30,000

$5.50 Senes A-14.000 shares-note (b) . 1,400 -

$5.50 SenesB- 3,000 shares-note (b). 300 -

$4.75 Senes- 20.000 shares-note (c) 2,000 -

$4.56 Senos-200,000 shares. 20,000 20,000

$4.50 Senes-213.595 shares. 21,359 21,359

$4.30 Series- 40.000 shares-note (c) . 4,000 -

$4 00 Senes- 150,000 shares. 15,000 15,000

$3.70 Series- 40,000 shares. 4,000 4,000

$3.50 Senes- 130,000 shares 13,000 13,000 Stated value of shares outstanding,

$97.50 per share-

$8.00 Senes of 1971 -425.000 shares. 41,437 41,437 Stated value of shares outstanding,

$92.25 per share-58.00 Senes-350,000 shares. 32,288 32,288 Stated value of shares outstanding,

$25 per share-

$2.98 Series-3.000,000 shares. 75,000 -

$2.125 Series- 1.600.000 shares. 40,000 40.000 Missouri Power & Light Company, former subsidiary-Preferred stock, $100 par 4.30% Senes-20,000 shares. - 2,000 value (entitled to 3.90% Senes-40,000 shares. - 4,000 cumulative dividends)

Missouri Utilities Company, former subsidiary-Preferred stock, $100 par value 5% Series- 14,000 shares. - 1,400 (entitled to cumulative 5% Series of June 1950- 1,500 shares. -

150 dividends) 5% Series of September 1950 - 1,500 shares. -

150 T;tal preferred stock not subject to mandatory redemption S354,784 $279,784 See Nah's to hnancial Statements on pages 22 23. 24 and 25

f7 December 31, December 31, Union Electric and Subsidiarios 1983 1982 Preferred Stock subject to mandatory redemption:

Union Electnc Company Preferred stock, without par Stated value of shares outstanding.

value (entitled to $ 100 per share-cumulative dividends)- $6.30 Series- 9.620 shares due note (a) to 2020- notes (b) and (d) S 962 $ -

Stated value of shares outstanding.

$50 per share-

$4.60 Series- 1,500,000 shares due 1985 to 2004-note (e). 75,000 75,000 Stated value of shares outstanding,

$25 per share-

$4.00 Series of 1982-3.000,000 shares l due 1988 to 2007-note (e). 75,000 75,000 l $2.72 Series- 1,200.000 and 1.280,000 shares at respective dates, due

__ to 1998 -note (f). 30,000 32.000 Missoun Utikties Company, former subsidiary-Prefctred stock, $100 par value 5.70% Series-9,880 shares (entitied to cumulative - note (d) -

988 dividends)

Total preferred stock subject to mandatory redemption S180,962 $ 182,988 (a) Authon/ed Union Electnc Company total preferred stock - 15 000.000 shares (b) issued in exchange for M:ssoun Util. ties Company preferred stock upon merger of such company into Union Electnc Campany (cl issued in e= change for Missoun Power & Light Company preferred stock upon merger of such Company into Union Cectnc Company (d) The Company is recurred to retire 260 shares at $100 per share on June t of each year.

(e) To be retired by sinking fund (t) Ihe Company c required to retire 80 000 shares and hr an opt:On to redeem an add tional 80 000 snares. at $25 per share on November 15 of each year l

I 1

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M December 31, December 31, Union Electric and Subsidiaries 1983 1982 Union Electric Company First mortgage bonds- 3h% Series due 1986. S 40,000 $ 40,000 note (a) 4%% Series due 1988. 35,000 35,000 4h% Series due 1990. 50,000 50,000 4h% Series due 1991. 30,000 30,000 15%% Series due 1991. 150,000 150.000 15% Series due 1992. 125,000 125.000 44% Series due 1993. 30,000 30,000 4b% Series due 1995. 35,000 35,000 55% Series due 1996. 30,000 30,000 54% Series due 1997. 40,000 40,000 7% Senes due 1998. 50,000 50,000 7%% Senes due 1999. 35,000 35,000 8?;% Series due 1999. 40,000 40,000 9.95% Series due 1999-note (b). 100,000 100,000 9% Series due 2000. 60,000 60,000 75% Series due 2001. 50,000 50,000 7%% Series due 2001. 50,000 50,000 8%% Series due 2001. 60,000 60,000 8%% Series due 2004. 70,000 70,000 10S% Series due 2005. 70,000 70,000 5.80% Senes due 1992 to 2005-note (c). 27,085 27,085 8Ta% Series due 2006. 70,000 70,000 8%% Series due 2007. 60,000 60,000 9.35% Series due 2008-note (b). 55,000 55,000 9.25-9.625% Senes due 2000 to 2010-note (c). 60,000 60,000 13% Senes due 2013. 100,000 -

Former Missouri Power & Light Company--

Series ranging from 3?i% to 10h%

Due 1984. .

- 7,500 Due 1992 to 2004-note (b). 53,100 54,120 Fcrmer Missouri Utikties Company-Series ranging from 4b% to 9M%

Due 1984 and 1988. 3,000 4,000 Due 1991 to 2001 -note (b). 22,600 22,900 Former Missouri Edison Company-Series ranging from 4%% to 16%

Due 1986 to 1987. 9,500 9,500 Due 1990 to 2002-note (b). 16,556 17,330 See Notes to Financ:al Starcments on pages 22. 23. 24 and 25 1

l

1 19 December 31, December 31 Union Electric and Subsidiaries 1983 1982 Union Electric Company (continued):

Unsecured loans-Foreign bank agreement Due 1984 (repaid in 1983). S -

$ 40,000 Domestic credit agreement-note (d) Due 1987 to 1988. 215,000 175,000 Unsecured notes - Former Missouri Utilities Company-6% Series due 1992-note (e). 1,025 2,030 Former Missouri Edison Company-21% Series due 1985 - note (f). 7 32 Missoun environmental improvement-Revenue notes 7%% Series due 1985. 20,000 20,000 10% Series due 1986. 45,000 45,000 Revenue bonds 5.60-6.20% Series due 1989 to 2004. 16,500 16,500 Nuclear fuellease 187,772 169,260 Union Colliery Company Secured note-note (f) 9% Due 1999. 136 141 Long-term debt S2,113,181 $2,005,398 (a) At December 31,1933, substantially all of the property and plant was mortgaged under, and subject to liens of. the respective indentures pursuant to which the bonds were issued.

(b) To be retired by sinking fund-9 95% Series from 1986 to 1998 and 9 35% Senes from 1989 to 2007; and. certain former subsidiary companies' bonds to 2003 (c1 Enviranmental lmprovement Senes (d)in 1982, Union Electnc Company entered into a six-year credit agreement with certain domestic banks which permits the Company to borrow up to

$375 mdhon. on which interest rates will vary depending on the Company s selection of vanous options under the agreement. At December 31.1983.

$215 mnon of such domestic borrowings v;ere outstanding at an average annualinterest rate of 10 48% based on 604ay Certificate of Deposit rates.

(e) Notes due in equal annual installments to 1991.

(t) Note due in equal monthly installments.

(glin 1982. Union Electnc Company entered into a six-year credit agreement with certain foreign banks which permits the Company to borrow up to $200 milhon. on which interest rates will vary depending on the Company's selection of vancus options under the agreement. At December 31,1983, none of such foreign borrowings were outstanding.

l

20 Consoliciateil Statement Qf Retainett Earnin;.!st usand8 a vou s,

_ _ _ _ Year 1983 Year 1982 Year 1981 Union Electric and Subsidiaries Balance at Beginning of Period S364,771 $324,547 $298,902 Add. Net income 276,155 205,466 157.083 640,926 530,013 455.985 Deduct- Preferred stock dividends

• 46,891 41,433 29,451 Common stock cash dividends-$1.66.

$158 and $1.52 per share, respectively . 145,748 120,203 101,735 Wnte-off of capital stock expense 3,276 3,606 252 195,915 165,242 131,438 Balance at Close of Period (Under the mortgage indentures of the Company as amended, free and unrestncted retained earnings at December 31,1983 amounted to

$387,896) S445,011 $364,771 $324,547

• Includes dividends dec!ared apphcable to subsequent penods Consoliclateil Statement Qf Other Paitl-In Capitalanousandsa vows >

MTU i. L Union Electric and Subsidiaries Year 1983 Year 1982 Year 1981 Balance at Beginning of Period S541,222 $464,450 $414,020 Add Excess of sales price over par value of 6.000,000,6,500,000 and 6,500.000 shares of common stock issued in 1983,1982 and 1981, respectively . 56,550 53,137 38.058

< Excess of sales price over par value of 3,898,752,3,157,794 and 1,780.268 shares of common stock issued during 1983,1982 and 1981, respectively, for dividend reinvestment and stock purchase plan . 35,301 23,313 10,244 Excess of sales price over par value of 377,789 and 350,300 shares of 4

common stock issued for tax reduction act stock ownership plan in 1983 and 1981, respectively. 3,780 - 1,811 Excess of stated value over purchase pnce of 80.000 shares of preferred stock redeemed in each of the years 1983,1982 and 1981. 101 322 317 Premium on preferred stock of former subsidiary company. 85 - -

Balance at Close of Period S637,039 $541,222 $464.450 See Ittes ta hnancu! Statements on pages 22. 23 N and 25

Consolicluteil Statentent of CItanges

$18 $IillulleIU$ l'oSitiall (ThouNnos at Dollars) 21

( MVSZM l Uni:n Electric and Subsidiaries Year 1983 Year 1982 Year 1981 Srurcsof Funds: From operations-Net income S276,155 $205,466 $157,083 Provision for depreciation . 92,297 86,670 81,310 Provision for deferred taxes on income (net) . 79,591 90,427 71,986 Provision for deferred investment tax credits (net) . 42,251 (3.073) 11,816 Allowance for all funds used during construction . (251,307) (198,0_93) (155,625) 238,987 181,397 166,570 From financing and other sources-Issue of mortgage bonds. 100,000 130.500 154,000 Issue of long-term unsecured debt. 40,000 295.032 90,000 l

Nuclear fuel lease. 18,512 37,833 32,392 Issue of preferred stock. 75,000 75,000 -

Issue of common stock. 86,550 85,638 70.558 Dividend reinvestment and stock purchase plans. 60,463 39,102 22,708 Settlement of uranium litigation. 12,556 12.879 13,904 Net decrease in working capital (excluding short-term loans and cuirent matunty of long-term debt). 87,579 42,704 67,722 480,660 718,688 451,284 Total funds provided S719,647 $900,085 $617,854 Application of Funds: Gross plant expenditures. S686,029 $628,343 $532,650 l Nuclear fuel. 18,553 38,062 32,406 i

Allowance for all funds used during construction. (251,307) (198,093) (155,625) l Union Electric dividends on preferred stock and common stock. 192,639 161,636 131,186 Restructured long-term unsecured debt. 40,000 175,000 -

Matunty of mortgage bonds. 2,223 36,899 894 Redemption of preferred stock. 2,026 2.026 2,026 Reduced short-term bank loans and commercial paper. 35,600 53,250 20,535 Callaway unit 2 cancellation charges-deferred . -

(537) 52,000 Net change in other funds. (6,116) 3,499 1,782 Total funds applied S719,647 $900,085 $617,854 Incr=ses (Decreases) in Working Capital: Cash and deposits. S(19,722) $ (7,690) $ (8,916)

Receivables, net. 28,089 10,797 9,421 Fuel. (25,117) 16,696 (27,598)

Other materials and supplies. 759 (852) 2,554 Accounts and wages payable. (38,352) (45.642) 6,657 Cancellation charges. 4,084 6,031 (52,000)

Taxes accrued. (14,695) (10.235) 12,794 Interest and dividends accrued or declared. (19,318) (5,905) (10,843)

Other. (3,307) (5,904) 209 Net decrease in working capital S (87,579) $ (42,704) $ (67,722)

See Notes ta Financut Statements on pages 22. 23 24 and 25

22 Notes To Financial Statenuents

'k n='aa Union Electric and Subsidiaries N:.te 1-Summary of Accounting Policies costs in the same manner as construction charges for The Company is subject to regulation by the Missouri labor and materials. Under accepted rate-making practice, Public Service Commission, Illinois Commerce cash recovery of AFC, as well as other construction costs, Commission, Iowa State Commerce Commission and occurs when completed projects are placed in service the Federal Energy Regulatory Commission. The and reflected in customer rates.

accounting policies of the Company are in accordance AFC rates are established by the Company consistent with the rate-making practices of the regulatory authorities with the methodology prescribed by the Federal Energy having jurisdiction and, as such, conform to generally Regulatory Commission. Average annual AFC rates were accepted accounting principles as applied to regulated 11.7% in 1983,11.6% in 1982 and 11.4% in 1981. AFC, public utilities. A description of the Company's significant net of taxes, amounted to 86%,90% and 87% of earnings accounting policies follows. on common stock for 1983.1982 and 1981, respectively.

Principles of Consolidation Unbilled Revenue The consolidated financial statements include the The Company records on its books the estimated accounts of the Company and its wholly-owned sub- amount of accrued, but unbilled, revenue and also the sidiaries. In the process of consolidation, allintercompany accrued liability for the related taxes.

investments and accounts and allintercompany sales and profits are eliminated. In December 1983 Union Electric's Note 2-Income Taxes utility subsidiaries, Missouri Power & Light Company, Totalincome tax expense for 1983 resulted in an effective Missou ri Utilities Company and Missouri Edison Company, tax rate of 34% on earnings before income taxes (32% in were merged into the Company. The mergers had no 1982 and 33% in 1981 ). The principal reason such amount effect on the consolidated financial statements. was less than the 46% statutory Federal rate was the Property and Plant allowance for equity funds used during conrtruction, which was 16% of earnings before income taxes for 1983 The cost of additions to and betterments of units of property and plant is capitalized. Cost includes labor, (14% in 1982 and 13% in 1981).

material, applicable taxes, pensions and certain other Income tax expense components for the years shown items, plus an allowance for funds used during are as follows (in thousands):

construction. Maintenance expenditures and renewals of 1983 1982 1981 items not considered to be units of property are charged incaded in operating expenses-to income as incurred. When units of depreciable property Taxes currently payable:

Federal . .S 5,701 $7,943 $ (3,706) are retired, the original cost and removal cost. less salvage, are charged to accumulated depreciation. De rred taxes Depreciation (principally Federal).

For financial statement purposes, depreciation is R provided over the estimated lives of the vanous classes dep c tion 21'279 17'500 14'177 Allowance for borrowed of depreciable property by applying composite rates on funds used dunng a straight-line basis. The provision for depreciation in construction. 52,451 49.455 44,107 1983 is equivalent to approximately 2.9% of the average Construction depreciable cost (2.8% in 1982 and 1981). abandonmerA - 21,500 14.000 Other (pnnCipally Income Taxes capitahzed costsj 9,589 7.288 6.553 Deferred income taxes are provided for timing Provisions deferred differences between book and taxable income as permitted in pnor years. (3,728) (5,316) (6,851) for rate-making purposes. Investment tax credits utilized Deferred investment tax credits, net. 49,054 (3.073) 11,942 are deferred and amortized over the usefullives of the _

properties to which they relate. 140,111 97,967 79.381 Allowance for Funds Used During Construction terIn e 1,046 (354) (1.511)

Allowance for funds used during construction (AFC) Total S141,157 $97.613 $77.870 is a utility industry accounting practice whereby the cost _

of borrowed funds and the cost of equity funds (preferred and common stockholders' equity) applicable to the Investment tax credit carryforwards, unrecorded as of Company's construction program are capitalized as a cost December 31,1983, amounted to approximately 590 of construction. This accounting practice is intended to million which may be utilized by the Company to reduce offset the effect on earnings of the cost of financing f Jture income tax liabilities through 1998.

construction activity, and results in treating such financing

23 Note 3-Capital Stock Note 4-Preferred Stock Subject to Dunng the three years ended December 31,1983, Mandatory Redemption common stock, $5 par value, was issued as follows: During the five years from December 31,1983, the 6.000,000 shares, 6,500,000 shares and 6,500.000 amounts of preferred stock to be redeemed at par or stated shares were issued in 1983,1982 and 1981, respectively. value are: $2,026,000 in 1984; $5.776,000 in 1985; in addition, of the 18.000,000 shares reserved for the $5,776.000 in 1986; $5,776,000 in 1987; and $9,526,000 Union Electnc Company Dividend Reinvestment and in 1988.

Stock Purchase Plan, 3,898.752 shares. 3.157.794 shares and 1.780.268 shares were issued in 1983,1982 Note 5-Debt Retirement Provisions and 1981, respectively, and of the 2,500,000 sharns Dunng the five years from December 31.1983, the reserved for the Union Electnc Company Tax Reduction amounts of debt matunties are: $10,728.000 in 1984; Act Stock Ownership Plan,377,789 shares and 350,300 $22,711,003 ;n 1985; $98,844,000 in 1986; $87,012,000 shares were issued in 1983 and 1981, respectively. in 1987; and $191,178,000 in 1988. (Amounts do not Dunng the same three-year penod preferred stock, include nuclear fuel lease payments since the timing and without par value, was issued and redeemed as follows: the amounts of such payments are not currently 3,000,000 shares, $2.98 Senes were issued in 1983 and determinable-see Note 10).

3,000,000 shares, $4.00 Series in 1982 in December Debt retirement provisions contained in the mortgage 1983, the Company issued 20,000 shares. $4.75 Series bond indentures of the Company require, subject to and 40.000 shares, $4 30 Seriesin exchange for Missoun certain alternatives, the redemption annually of 1% of the Power & Light Company preferred stock; and at the same principal amount (as defined) of each series of bonds.

time, issued 14,000 shares, $5.50 Series A. 3,000 shares, in lieu of such redemptions the Company has been

$5 50 Senes B and 9.620 shares. 56.30 Senes in following the practice of pledging property additions as exchange for Missoun Utilities Company preferred stock. permitted by the indentures.

In each of the years 1983,1982 and 1981. the Company redeemed 80,000 shares, $2.72 Senes: and. Missouri Note 6-Employee Retirement Plans Utilities Company redeemed 260 shares,5.70% Senes The retirement plans covering employees of the prefened stock. Company are financed through irrevocable pension Preferred Stock Eventual trusts and group annuity contracts. The Company's pelicy Redemption Pricos Current Minimum is to fund pension costs accrued. Costs of the retirement (Per Share) plans for the years 1983,1982 and 1981 were

$7.44 Senes $ 102.50

, aM O2,W,MO,

$ 10100

$6 40 Senes 101 50 101 50 respectively, of which approximately 24% was charged to

$5 50 Senes A 110 00 110 00 construction accounts. The aforementioned amounts

$5 50 Senes B 103 50 103 50 include current service costs and prior service costs

$4 75 Senes 102.176 102.176 which are being amortized over twent'j years.

$4 56 Senes 102 47 102.47 A companson of estimated actuarial present value of yfjn] ]{ ]ga) accumulated plan benefits and plan net assets follows

$4 00 Senes 105 625 105 625 On m onsl

$3 70 Senes 104 75 At December 31, 104 75

$3 50 Senes 110 00 110.00 1983 1982 1981

$8 00 Senes of 1971 101.50 98 50 Vested. . .

$8 00 Senes S249 $197 $246 99 25 93 25 Nonvested .

$2 98 Senes <7 98 26 18 4 25 00

$2125 Senes 26 4 bio) 25 25 S275 $215 $250 (b) Net assets avadable for benefits $275 $239 $179 yjo nos 982 (e) The weighted average assumed rate of return used in determining the actuarial present value of accumulated (a) in the esent et vor untary liau,dat:on 5105 50 plan benefits was 7% for 1983 and 1982, and 6% for 1981, (b) Redempt.on subrect to certa n restoctions regarding refunding operabons (c) The Company n requ. red to redeem 260 shares at $100 per share, plus accrued divdends on June 1 of each year (d) Ihe Company is reau, red to redeem 75.000 shares at $50 per share on August 15 of each year. Com.flencing in 1985 (e) The Company is requ red to rehre 150 000 shares and has an opt:an to redeem an add t;onal 150 000 shares. at $25 per sharo on f ebruary 15 of each year commencing in 1988 (t) 1he Company is required to ret.re 80 000 shares and has an opt on to redeem ao 3ddtona! 80 000 shares. at $M per share on Nosember 15 of each was

24 Notes llo Firuaracial Staterruerats <conunuem MXITKL M Union Electric and Subsidiaries N:te 7-Short-Term Borrowings Note 8-Construction Commitments Short-term borrowings of the Company consist of The Company is engaged in a construction program bank loans (matunties not in excess of 270 days) and under which expenditures of approximawly $1.2 billion commercial paper (maturities generally within 30-45 days). are anticipated during the next five years, of which Information relative to short-term borrowings is as follows expenditures of $567 milhon and $157 milhon are esti-(in thousands except rates). mated to be made in 1984 and 1985. respectively.

1983 1982 1981 Note 9-Contingencies Amount outstanding On October 9,1981, the Company canceled con-

~

struction of Unit No. 2 at its Callaway nuclear plant which Nktons. S 31,500 542.100 566.350 unit had been scheduled to be placed in service in 1990.

Commercial paper -

$25.000 $54.000 At December 31,1983, $50 million, representing con-Composite interest struction costs accumulated to that date plus estimated rate at year end- cancellation charges (net of taxes) has been deferied. By Bank loans 10.8% 11 3% 13.8% order dated October 21,1983, the Missouri Commission ppef' _.

9.9% 13 6%

ruled that recovery of such cancellation costs applicable to the Missouri jurisdiction ($37 million)is barred by a Maximum aggregate amount outstandrng state statute which prohibits recovery, in rates, of costs at any month end of a facility before it is fully operational and used for dunng the year $154,500 $205 850 5167.275 service. The Company is of the opinion that the statutory Average dady short~ ban does not apply to canceled plants and, furthermore,

$t t nd ng urIng that the Commission's interpretation of the statute is the year- unconstitutional beCause it purports to disallow recovery Aggregate of costs prudently incurred. Consequently, the Company amount . 3115,775 5138.847 5136.116 has appealed the Commission's decision. The balance of Weighted com- such costs, applicable to other regulatory jurisdictions, is either presently being recovered in customers' rates, or fat 9.7% 13.7% 17.8%

currently under regulatory consideration. In the opinion of management, unrecovered costs, if any, would not be The above weighted composite interest rates were material to the financial position of the Company.

calculated by dividing the applicable interest expense for The Company has property insurance coverage of $500 the year by the average daily short-term borrowings million provided by American Nuclear Insurers (ANI) and b '

Mutual Atomic Energy Liabihty Underwnters(MAELU) ee ber 31,1983, the Company had bank lines a sC a "" '

of credit aggregating $171,140,000 ($139,640,000 of pg ng nu e uel in the Callaway plant's which was unused at such date) which make available reactor (Spring 1984), the Company plans to have the interim financing at various rates of interest based on to lowing additional insurance coverage, the maximum pnme, the London Interbank Offered Rate (LIBOR), the amounts currently available-bank certificate of deposit rate, or other options, and in Excess property insurance of $435 million support of which the Company has both wntten and provided by Nuclear Electric Insurance Limited unwntten agreements with its lending banks to pay annual (NEIL), a mutualinsurer established by the utility fees ranging from 0.25% of the unused portion of the ndustry. Under this policy, the Company could line of credit to 0.375% of the line of credit. These lines be subject to a retrospective premium assess-of dit a e renewable annually at various dates through- ment of up to $10 milhon in any one pohcy year if NEIL's property losses exceed available funds.

Excess property insurance of $85 million pro-vided by ANI and MAELU.

1

)

25 The Atomic Energy Act,asamended, currently and 1981, the Company capitalized related interest costs limits liability to third parties to $580 million for of $17.9 million, $19.7 million and $19.8 million based on each nuclear incident. Coverage of the first $160 an average interest rate of 10.0% 13.4% and 17.6%

million of such liability will be provided by ANI respectively.

and MAELU. The balance will be provided by utility industry retrospective assessments. The Note 11-Settlement of Uranium Litigation Company's maximum potential assessment In 1979, the Company and Westinghouse Electric under this plan would be $5 million per incident Corporation settled the Company's suit to require but not more than $10 million per year. Westinghouse to fulfill its contractual obligation to deliver Furthermore, once the Callaway nuclear plant is placed 10 million pounds of uranium U30sto the Company. The in commercial operation (late 1984 or early 1985), the settlement provides for cash and discounts on uranium Company plans to have accidental outage replacement and goods and services over the period 1980-2010.

power insurance provided by NEIL. Thereunder, the Company proposals currently under review by regulatory Company will be insured for up to $2.5 million per week authorities provide that settlement proceeds will be utilized for one year, commencing 26 weeks after initiation of to reduce fuel expense.

the outage, and for up to $1.25 million per week for an additional year. Under this policy, the Company could be Note 12-Supplementary income Statement subject to a maximum annual retrospective premium Information assessment of up to $7.6 million.

1983 1982 1981 The Company is involved in legal or administrative proceedings before vanous courts and agencies with (Thousands of Dollars)

Maintenance and repairs, respect to matters arising in the ordinary course of bust- charged directly to; ness, some of which involve substantial amounts. Operating expenses. S 99,395 $100.223 $87,435 Management is of the opinion that the final disposition of Other accounts (a). 5,888 5.736 4,768 these proceedings will not have a material adverse effect S105,283 $105.959 $92.203 on the financial position of the Company.

Depreciation depletion and Nnts 10-Nuclear Fuel Lease amortization of tixed and intangible assets, charged The Company has entered into a lease agreement directly to:

which provides for the financing of the costs of up to Operating expenses. S92,297 $86.670 $81.310

$200 million of the Company's nuclear fuel. Pursuant Other accounts (a). 3,018 2.862 2.435 to the terms of the lease, the Company has assigned to S95,315 $89,532 $83.745 the lessor certain contracts for purchase of nuclear fuel. '

The lessor obtains through the issuance of commercial Taxes. other than payroll and income taxes. charged paper backed by letters of credit from commercial banks, directly to:

or from direct loans from commercial banks, the Operating expenses-necessary funds to purchase the fuel and make interest Real estate and payments when due. personal property. S 48,426 $ 51.282 5 51,977 The Company is unconditionally obligated to reimburse the lessor for all expenditures for nuclear fuel. interest and ] ranch se ~ 69'682 61'002 54 664 related costs Obligations under this lease will become Other. 1,722 1,491 1,338 current at such time as the nuclear fuelis engaged in heat production at the Company,s Callaway nuclear plant. Other accounts- 4 The Company has capitalized the cost, including S131,233 $123.024 $115.886 interest costs, of the leased nuclear fuel and has recorded the related lease obligation. During the years 1983,1982 (a) A substantial portion of amounts charged to other accounts is xlocated to operating expenses tnrough cleanng accounts (b) The amounts of payroll taxes for the years 1983.1982 and 1981 were $12.068.000. $11.036 000 and $9.149.000, respectively (c) The amounts of roya:t.es and aavert: sing costs were not matenal.

This report and the financial statements contained herein are submitted for the ir'fermation of the stockholders of the Company and are not intended to induCO. Or for UEe In ConneClion with. any sale or purchase of any securities of the Company.

28 Selecteel Fiiatrizeiral lin,6wirtcetioil (Tnousanos of oonars Except snare and Per share Amounts and Rattos)

M7 - -M Union Electric and Subsidiaries 1983 1982 1981 1980 Results of Operations Operating revenues. .S1,401,086 $1,217,705 $1,105,536 $1,077.876 Operating expenses. 1,160,816 1,013,054 922,647 886,720 Operating income. 240,270 204,651 182.889 191,156 Allowance for all funds used during 251,307 198,093 155,625 92,055 construction .

3,490 3,660 (734) 3,638 Other income-miscellaneous. 132,112 Interest on debt and other items. 218,912 200,938 180,697 276,155 205.466 157,083 154,737 Net income.

Preferred dividend requirements of Company 45,736 39,960 29.478 29,695 Earnings on common stock. 230,419 165,506 127,605 125,042 Average common shares outstanding. .86,744,282 76,251,024 67,179,275 59,675,995 Assets, Obligations and Equity Capital (Year-End)

Total assets. .S5,205,556 $4,630,797 $4,047,277 $3,552,104 Long-term debt obligations. 2,108,047 2,000,405 1,719,927 1,479,229 Redeemable preferred stock obligations. 180,932 182,988 110,014 112,040 Non-redeemable preferred stock. 356,270 281,355 281,355 281,355 Common equity. 1,555,501 1,328.061 1,162,777 1,043,549 Financial Indices Earnings per share of common stock (based on average shares outstanding). S2.66 $2.17 $1.90 $2.10 Cash dividends per share of common stock. S1,66 $ 1.58 $ 1.52 $148 Return on average common stock equity. 16,49% 13.93% 12.11% 13.11%

Ratio of earnings to fixed charges (a). 2.89 2.50 2.29 2.85 Reirtresttruertts ****

Irn Ce>rrturnc>rt - 1 lk ptin' *** p ao wan u,uw w p

)A T."lll"*E""% ~ cj u w Retained Eamings jC m

160 j 12 6 73 74 75 76 77 78 79 80 81 82 83

--- _ _-_-___m_ _ _ _ . _ _ _ . _ _ _ _ _ _ _ _ . _ . _ _ _ _ _ _ _ _ _ _ __

27 l

1979 1978 1977 1976 1975 1974 1973 l

l

$946,797 $903,988 $765,102 $682.456 $583,455 $468,656 $417,949 780,331 727,756 605.963 518.342 446,569 355,655 306,689 166,466 176,232 159,139 164,114 136,886 113,001 111,260 58,093 31,469 19,022 12,379 23,107 13,696 10,521 879 2,896 1,389 (2,554) 1,403 1,154 99 107,383 90,699 84,015 78.529 75,361 68,065 54,713 118,055 119,898 95,535 95.410 86,035 59,786 67,167 26.948 23,040 20,367 19,640 19,640 15,700 15.288 l 91.107 96,858 75,168 75,770 66,395 44,086 51,879 52,577,432 48,260,596 45,110,245 40,795.152 37.240,134 32,187,113 31,946,291

$3,168,998 $2.800,209 $2,521,181 $2.316,039 $2,162,312 $2,030,103 $1,786.255 1,307,990 1,238,860 1,189,080 1,118,418 1,021,747 939,933 830.087 114.066 41,092 41,118 41,144 41,170 41,196 -

281,355 281,355 281,355 241,355 241,355 241,355 238,084 930,375 836,020 733,111 634,400 608,860 543,985 492,048 l

$ 1.73 $2.01 $1.67 $ 1.86 $ 1.78 $ 1.37 $1.62

$ 1.44 $1.40 $ 1.36 $ 1.34 $ 1.28 $ 1.28 $1.28 10.71% 12.61% 10.68% 12.19% 11.98% 8.94% 10.72%

2.61 3.18 2.81 2.79 2.51 1.92 2.33 (a) Earnings used in computing the ratio of earnings to fixed charges consist of net income plus fixed charges (interest on debt. preferred dmdends of subs, diaries and an appropriate amount of rentals charged to operating expenses) and income taxes l

Manasjement's Discussion Anti Analysis-2m Liquitlity Anti Capital Resources MO:. _ _ M Union Electric and Subsidiaries Construction expenditures are expected to aggregate The Company plans to continue to utilize short-term debt

$1.2 billion during the next five years,1984 through 1988, as interim support between long term financing. Average including $567 million in 1984: however, with completion daily short-term borrowings outstanding during 1983 of the $2 85 billion Callaway nuclear plant scheduled were $116 million. At December 31,1983, bank lines of for late 1984 or early 1985, such expenditures are credit and credit commitments from banks aggregated anticipated to be less than $200 million each year. over $171 million, not including the intermediate-term credit the succeeding four-year penod. agreements mentioned above, and. at such date in addition to the f unds required for construction during $32 million of short-term bank loans were outstanding the 1984-1988 penod. $439 million, including $13 million (see Note 7 under Notes to Financial Statementsl Union in 1984. will be required to retire maturing long-term debt Electric is authonzed by the Federal Energy Regulatory and for sinking fund payments on first mortgage bonds Commission to incur up to $300 million of short-term and preferred stock. unsecured indebtedness; however, short-term debt is not A nuclear fuellease provides for the financing of up to expected to exceed $200 million

$200 million of the Company's nuclear fuel requirements. For data reiative to Supplementary Information on At December 31.1983, $188 million of nuclear fuel had Inflation and Changing Prices, see pages 32 and 33.

been financed under the lease. The Company plans to increase the total amount of financing permitted under the lease to $300 million in 1984.

Union Electnc has entered into intermediate-term credit agreements with certain domestic and foreign banks which permit the Company to borrow up to $575 million through November 1988 At December 31,1983, 3215 millior of such borrowings were outstanding.

The C';mpany presently anticipates that substantially all of its 1984 cash requirements will be obtained from environmental improvement debt, the Dividend Reinvestment and Stock Purchase Plan and the nuclear fuel lease. However, internal generation of cash is expected to improve significantly when the Callaway nuclear plant is completed and reflected in electnc rates.

Therefore, the Company presently anticipates that no additional public financing will be required for construction during the four-year period 1985 through 1988.

7 7btal 57*

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tin Mdles) 5*

Actu.I g Forec.st g 400 L

k 79 80 81 82 83 84 8$* 86* 8/* 84*

85 88 .n. c.w., n.oi co III l

1 1

Results Of Operations as MW X 2 Union Electric and Subsidiaries __

Earnings and earnings per share fluctuated due to Operating Expenses many conditions, certain of which applied to this industry The changes in operating expenses were as follows.

in general and this company in particular: the effect of weather variations, the timing and amounts of rate u a" p ased Power Vanation from Pnor Year increases and increasing operating costs. Also, the quakty -

of such earnings has been adversely affected by the sub. 1983 1982 1981 i stitution of allowance for funds used during con- Fuel. (Mdhons of Dollars) struction (a noncash item) for the cash recovery of the Vanation in generation. .S10.7 $ (1.4) $ (17.6) cost of funds invested in facilities under construction. Pnce increases. 29.4 14.0 31.6 The $2.66 per share 1983 common stock earnings Efficiencies . (.4) (4 2) .8 reflected a substantial improvement over 1982. Purchased and interchange p wer 25.2 7.3 7.7 l This 49 cents per share gain resulted pnmarily from increased sales and higher electric rates, partially offset S64.9 $ 15.7 5 22.5 by greater operating costs.

The impact of the more significant items affecting Other Operating Expenses The costs of other operations, maintenance and l revenues, costs and earnings during the past several years is analyzed and discussed below. depreciation increased principally due to recurring conditions, such as growth, inflation, greater property Electric Operating Revenues investments and wage increases. Income taxes fluctuated Variation from Pnor Year in response to pretax income (see Note 2 under the 1983 1982 1981 Notes to Financial Statements). Other taxes increased generally due to additional license and franchise taxes (Mdhons of Dollars) on greater revenues and higher payroll taxes due to Rate increases S 57.7 $ 86.1 $ 38.0 Et'ect of weather 55.3 (3 2) (45.6) increases in taxable wage bases and rates (see Note 12 Growth and other 56.3 9.3 30 4 under Notes to Financial Statements).

3169.3 $ 92.2 5 22.8 Interest and Preferred Dividends The increases in interest on debt and preferred divi-The extremely hot 1983 summer and the cooler-than- dends were primarily due to the issuance of additional l

normal preceding summer caused 1983 electric revenues secunties to finance the construction program.

to increase by more than $50 million over the prior year.

The impact of an unusually hot 1980 summer combined Allowance For Funds Used During Construction (AFC) with the effect of a mild 1981 summer caused a negative AFC increased due to a greater amount of construction

$46 milhon 1981 revenue variation from the prior year. work in progress and to increased AFC rates (see Note 1 Kilowatt-hour sales during 1983 were up 7S percent under Notes to Financial Statements). The amount of AFC ove 1982, with residential sales showing a dramatic 14 will increase significantly again in 1984 and constitute a percent increase reflecting the recent extremely hot substantial portion of 1984 earnings. Af ter the Callaway summer, while commercial sales of electricity gained 4 nuclear plant begins commercial operation and is percent over the prior year. Sales to industnal electric reflected in electric rates, AFC will dechne substantially.

customers rose 5 percent above 1982-the greatest The Callaway Plant is presently scheduled for completion increase since 1977, confirming the economic recovery in late 1984 or early 1985.

in the Company's service terntory.

Electnc rate increases were granted by the Missouri Public Service Commission in mid-1983 (approximately i $30 milhon annually), mid-1982 (approximately $65

milhon annually) and mid-1981 (approximately $65 million annually).

In February 1984, the Company fded rate increase requests with the Missoun and liknois regulatory commis-sions in anticipatiGn of the commercial operation of the Callaway nuclear plant. The requests include a proposed rate phase-in plan that would spread the rate increase over a five-year period. Decisions are required from each commission by January 1985.

Under the proposed rate phase-in plan, electric rates would increase by approximately 25 percent the first year

($246 milhon and $33 million for Missouri and liknois customers, respectively) and by approximately 8 percent in each of the fol'owing four years. The rate phase-in plan will result in lower cash receipts in the early years, althoug h there will be no effect on reported earnings.

i 30 SelCCfc(l QH(f rterly InffWinutioil (Thousands of Dollars Except Per Share Amoun's)

MMG 'T2 Union Electric and Subsidiarias Earnings Earnings Per on Share of Operating Operating Net Common Stock Quarter Ended Revenues Income Income Stock _

Outstanding March 31,1983. S305,859 S41,643 S 53,327 S43,059 6 .51 March 31,1982. 292,033 33,851 32,233 23,211 .31 June 30,1983. 309,658 55,781 61,706 51,215 .60 June 30,1982. 274,533 45,371 44,035 33,713 .45 September 30,1983. 466,619 99,860 111,314 98,812 1.14 September 30,1982. 373,706 86,860 87,723 77,402 1.01 December 31,1983. 318,950 42,986 49,808 37,333 .41 December 31,1982. 277,433 38,569 41,475 31,180 40 Comnuon Stock Prices Ant! Divitientis

-1 .r n Union Electric Company (1) 1983 Price Range 1983 1982 Price Range 1982 High _

Low Dividends [2) Quarter Ended: High Low Dividends S15% S13% 410 . . March 31. . . $114 $10% 38$

16% 13% 41 . . June 30. . . . 12h 10% 38 I SP. 13% 41 . September 30. 13% 11% 41 15% 12% 43 . . . . December 31. . . . . 14% 12% 41 (1) At December 31,1983. Union Electnc Company common stock shareholders totaled 192.833 (New York Stock Exchange symbol UEP)

(2) At December 31.1983 retained earnings amounted to $445.011000. under the Company s amended mortgage indentures $57.115.000 of total retained earnings was restncted against payment of common dividends-except those payable in common stock 0

d Sitbeh l'YiCC 'i6 lbmde ss

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1982. High g

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Lou g ,

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e Quarter: ~ ist 2no s o een~ t ot 2nd ans 4th 1982 1943 l

Firaniteial Positiois (Thousands of Douars Except Share and Per Share Arnounts and Ratios) 3f N ~1 ..

Union Electric and Subsidiaries December 31, 1983 1982 1981 1980 1979 Ass:ts Properties (at original cost). S S,858,554 $5,190,779 $4,554.567 $4,051,124 $3,649,728 Less accumulated depreciation. 1,062,765 984,656 915,996 848,826 786,147 4,795,789 4,206,123 3,638,571 3,202,298 2,863,581 Receivables, net. 174,382 146,293 135,496 126,075 148,482 Fuel supplies. 73,889 99,006 82,310 109,908 85,107 Other assets. 161,496 179,375 190,900 113,823 71,828 Total Assets S5,205,556 $4,630,797 $4,047,277 $3,552,104 $3,168,998 C:pital and Liabilities Capitalization:

Common stock and retained earnings-Common stock. S 473,451 $ 422,068 $ 373,780 $ 330.627 $ 293,984 Other paid-in capital. 637,039 541,222 464,450 414,020 374,189 Retained earnings. 445,011 364,771 324,547 298,902 262,202 Common equity. 1,555,501 1,328,061 1,162,777 1,043.549 930,375 Preferred stock not subject to mandatory redemption. 356,270 281,355 281,355 281,355 281,355 Preferred stock subject to mandatory redemption. 180,962 182,988 110.014 112,040 114,066 Long-term debt obligations. 2,108,047 2,000,405 1,719,927 1,479,229 1,307,990 Total capitalization 4,200,780 3,792,809 3,274,073 2,916,173 2,633,786 Accumulated deferred taxes on income. 408,171 328,580 238,153 166,167 123,291 Accumulated deferred investment tax credits. 164,468 122,217 125,290 113,474 87,556 Accounts and wages payable. 175,561 137,209 91,567 98,224 100,310 Short-term debt including current matunties. 42,228 69,323 152,253 141,895 122,909 Other liabilities. 214,348 180,659 165,941 116,171 101,146 Total Capital and Liabilities $ 5,205,556 $4,630,797 $4,047,277 $3,552,104 $3,168,998 Common Equity Data Number of shares outstanding. 94,690,220 84,413,679 74,755,885 66,125,317 58,796,909 Book value (common equity) per share. S16.43 $15.73 $15.55 $15.78 $15.82 C:pitalization Ratios Common equity. 37.0% 35.0% 35.5% 35.8% 35.3%

Preferred stock not subject to mandatory redemption. 8.5 7.4 8.6 9,7 10.7 Preferred stock subject to mandatory redemption. 4.3 4.8 34 3.8 4.3 Long-term debt. 50.2 52.8 52.5 50.7 49.7 Total 100,0% 100.0% 100.0% 100.0% 100.0%

Sup>l>lementury bajormatiott Ort htJhttion 32 Azul Chan.gistg Prices cunaua,rca, ammmmmunmummann r r o -

Union Electric and Subsidiaries Estimates of the effects of inflation and changing applying to the adjusted amounts for each functional pnces on the operations of the Company for the year class of plant, the same percentage relationship ending December 31,1983, are presented in that existed between gross plant and the associated accordance with the requirements of Financial accumulated provision for depreciation on an Accounting Standards Board (FASB) Statement historical basis.

No. 33, Financial Reporting and Changing Pnces Statement No. 33 requires that historical costs be Depreciation Expense Depreciation expense for the year 1983 applicable adjusted to reflect the effects that general inflation to constant dollar and current cost property was (constant dollar) and changes in specific prices $225 331,000 and $252,662,000 respectively. The (current cost) have had on the Company's operations. actua'l 1983 depreciation expense'was $92,297,000.

The adjusted data is not intended as a substitute fcr The adjusted amounts were determined by applying earnings reported on an historical cost basis, but rather to the indexed property and plant values the same to give some perspective as to the approximate effects straight-kne book rates used for historical purposes.

of changes in the purchasing power of the dollar.

Property, Plant and Equipment Reduction of Property, Plant and The estimated value in average 1983 dollars of Equipment to Net Recoverable Cost property, plant and equipment. including construction The regulatory process limits the Company to the work in progress. was determined by applying the recovery of the historical cost of property and plant Consumer Price Index for All Urban Consumers to the through depreciation. Therefore, any excess of property historical cost of plant The current cost estimates were and plant in constant dollars or current cost must be reduced to the net recoverable cost, which is historical pnmanly measured by applying the Handy-Whitman

'~lndex of Public Util:ty Construction Cost" to each major cost. While the rate-making process does not reflect class of plant Current cost approximates the cost of the current cost of replacing utility plant, past practice currently replacing existing plant. The adjusted plant indicates the Company will be allowed to earn on and to data under either the constant dollar or current cost recover the increased cost of its net investment after methods does not indicate the Company's future capital these facilities are replaced. The excess of constant requirements because actual replacement of existing dollar and current cost over historical cost property plant will occur over many years and will not identically and plant in 1983 was $33,864,000 and $73,488.000, replace existing plant. respectively.

At December 31,1983, the constant dollar and Gain from Decline in Purchasing Power of current cost of property, plant and equipment, net of Net Amounts Owed accumulated depreciation were $8.736,781,000 and The Company, by having assets such as receivables, 59,705,695.000. respectively, while historical or net fuel and materials inventory and deferred charges, recovmable cost was $4,795,789,000. The current suffers a loss of purchasing power during penods of cost and constant dollar values differ because specific inflation because af ter conversion, the cash received pnces of plant have increased at a rate different from for these items will purchase less. More than offsetting that of generalinhation. these assets, however, are significant amounts of Accumulated Depreciation long-term debt, refundable preferred stock, deferred The accumulated provision for depreciation for both income taxes and current liabilities which will be repaid constant dollar and current cost was determined by with dollars of reduced purchasing power. Thus, for 1983, the Company experienced a net " gain of

$96.256,000 from having an excess of monetary liabilities over monetary assets. (investments and 7 unamortized investment tax credits were considered as

! Indution vs. 4os I no monetary items: nonrefundable preferred stock i Oni MiceNr _ _

was included in shareholders' equity).

5 Eleenicity General l **""*'30 Pursuant to Statement No. 33, depreciation expense

! ac, ,, was the only income statement item that was adjusted.

' am For rate-making purposes, the amount of E ro depreciation expense included in the Company's uM'j allowed revenues is based on historical or original cost.

'5 m The Company's inabihty to reflect currently the effects

,a of inflation and changing pnces resulted in 1983 reported earnings of $230,419.000 or $2.66 per share j s rather than the more reahstic earnings of $97,385,000

or $1.12 per share on a constant dollar basis, or

$70.054.000 or 81C per share on a current cost basis.

i._

l

33 Also, because Federalincome tax policy prohibits Consolidated Statement of income the deduction of inflation-adjusted depreciation Adjusted for Changing Prices Year Ended December 31,1983 expense for income taxes, the Company's 1983 effective income tax rate was about 48 percent for (in Meons of Aerage Douars) constant dollar and 53 percent under current cost, each C" " "

Do a bo*t of which is greater than the Federal statutory rate of Common stock earnings * $230 $230 46 percent. Failure of regulatory and taxing authooties Additional depreciation (133) (160) to allow depreciation of the current cost of plant severely Common stock earnings adjusted limits the amount of funds that are generated internally "'

I '"

for use in replacing or modernizing aging and obsolete r overab e con) 97 ** 70 assets. Loss from reducing plant to Rates authorized by regulatory agencies must be net recoverable cost. . (33) (73) sufficient to permit the replacing of plant and equipment Relative poce changes *** ,

67 when necessary as well as preserve the purchasing Gain from decline in purchasing power of common equity capital To have retained the p wer of net amounts owed. 96 96 same purchasing power as they had in 1979, the Not change in common equity $160 $160 Company's common s'.areholders r should have received 'As reported 1983 common dividends of $1.98 per share as compared " Common stock earnings on a constant dollar basis would have been with the actual $1.66 and the realized return on common $64 meon it it rettected the reduction to net recoverab!e cost of equity should have been sufficient to permit the common ...fu r t cost represents the excess of specific pnce changes stock to sell at about $16 per share or almost 25 percent ($412 meon)in 1983 over the increase for such year in general pnces higher than the actual year-end pnce. of property and plant ($345 mitiion)

Fivs YIar Comparison of Selected SupplImentary Financial Data Years Ended December 31' Adjust::d for Effects of Changing Prices 1983 1982 1981 1980 1979 (in Meons of Average 1383 Dollars Except Per Share and As Reported Amounts)

Optrating revenues:

As reported $ 1.401 4 .218 $ 1.106 $ 1.078 $ 947 Adjusted for generalinflation 1.401 1.257 1,211 1.303 1.300 Earnings (loss) on common stock (sxcluding reduction to net recoverable cost):

As reported $230 $166 $128 $125 $91 Adjusted for general antiation 97 44 16 37 20 Bared on current cost 70 16 (10) 8 (18)

Earnings (loss) per share of common stock (1xcluding reduction to not recoverable cost):

As reported $2.66 $217 $1.90 $2.10 $ 1.73 Adjusted for generat inflation 1.12 .58 .24 62 .38 Based on current cost . . .81 21 (.15) .13 (.34)

Shirgholders' equity (net assets), at year-end:

Ihstoncal cost (as reported) 51,912 $ 1.609 $ 1.444 $ 1.325 $ 1,212 Adjusted for both generalint!ation and current cost .

1.880 1.642 1.531 1.530 1.573 ExcIss (deficiency) of general prico changes cvsr increase in the specific level of prices $(67) $(34) $(IS) $138 $226 Grin frtm decline in purchasing power of n:t amounts owed . $96 $86 $178 $235 $252 CIsh dividends declared per common share:

Actual $166 $1.58 $1.52 $1.48 $ 1.44 Adiusted for generalinflation .

1 66 1 63 1.67 1.79 1.98 Mirkit price per share, at year-end:

Actuat. . . .

$12'6 $13% $10% $10% $12 Adiusted for generat inflation 12% 14 11 h, 12B 15%

Av:; rage consumer price index 298 4 289.1 272.4 246.8 217.4 i

34 Operittillg Sitttistics m 7;;

Union Electric and Subsidiaries 1983 1982 1981 1980 Electric Operating Revenues (000):

Residential . S 524,792 $ 426,213 $ 389,182 $402,160 Commercial 402,737 363,826 321,400 306,486 Industrial . 281,397 257,320 250,842 233,854 Other electric utilities. 46,428 42,650 39,789 35,619 Miscellaneous. 25,800 21,846 18,458 18,774

~

Total S1,281,154 $ 1,111,855 $ 1,019,671 $996,893 Kilowatt-Hour Sales (000,000)

Residentral. 8,979 7,906 7.756 8,446 Commercial. 7,653 7,339 7,024 6,913 Industnal 7,478 7.130 7,767 7,616 Other electoc utilities 1,498 1,412 1,420 1,435 Miscellaneous 321 310 312 385 Total 25,929 24,097 24,279 24,795 Electric Customers (End of year)-

Residential 879,156 869,844 870,066 862,406 Commercial 110,048 109.947 108,561 106,428 Industrial 5,126 5,132 5,207 5,328 Elertnc utilit'es. 24 24 24 24 Other. 3,297 3,234 3,065 2,950

~

Total 997,651 988,181 986,923 977,136 Residential Customer Data ( Average):

Kilowatt-hours used 10,283 9,108 8,955 9,848 Annual electric bill. S601.03 $490.96 $449.35 $468.92 Revenue per kilowatt-hour. 5.840 5.39C 5.02C 4.76C Gross Instantaneous Peak Demand (Kilowatts) 6,598,000 6,161,000 6,296,000 6,404,000 Capability at Time of Peak, including Not Purchases (Kilowatts) . 7,633,000 7,631,000 7,444,000 7.468,000 Generating Capability at Time of Peak (Kilowatts) 6,948,000 6,951,000 6,879,000 6,824,000 Coal Burned (Tons) . 11,371,000 11,086,000 11,316,000 11,730,000 Price por Ton of Coal. S33.33 $30.45 $29.15 $26.85

--- E  !!_ 'N 'I MIX

'!.5

36 1979 1978 1977 1976 1975 1974 1973

$333,251 $331,128 $283,124 $248,784 $220.174 $171,381 $159,813 265,278 253,279 219,806 195,568 162,079 129,351 116,040 221,617 209,440 169,834 154,539 127,939 107,471 95,210 34,185 31,565 24,040 21,432 19,812 23,814 18,057 20,388 19,061 16,232 14,677 12,973 11.027 10,041

$874,719 $844,473 $713,036 $635,000 $542,977 $443,044 $399,161 7,546 7,670 7,389 6,625 6,807 5,898 6,058 6,463 6,332 6,331 5,823 5,554 5,249 5,281 7,858 7,738 7,656 7,221 6,855 6,845 6,841 1,341 1,317 1,263 1,171 1,222 1,780 1,643 481 460 442 519 506 474 466 23,689 23,517 23.081 21,359 20,944 20,246 20,289 853,908 845,074 832,251 821,564 810,702 764,363 756,489 101,355 99,751 99,105 95,248 93,848 81,477 80,703 5,334 5,348 5,225 5,459 5,368 5,303 5,254 24 24 24 24 25 23 22 2,917 2,753 2,312 1,472 1,350 1,195 1,154 963,538 952,950 938,917 923,767 911,293 852,361 843,622 8,893 9,167 8,956 8,114 8.459 7,756 8,067

$392.74 $395.74 $343.16 $304.71 $273.62 $225.37 $212.83 4.42C 4.32C 3.83C 3.76C 3.23C 2.91 C 2,64C 5,846,000 5,813,000 5,837,000 5,582,000 5,363,000 5,318,000 5,138,000 7,739,000 6,873,000 6,891.000 6.913,000 6,474,000 6,660,000 6,963,000 6,947,000 6,718,000 6,607,000 6,439,000 5,962,000 6,080,000 6,080,000 12.037,000 11,866,000 11,915,000 11,069,000 10,089,000 8.574,000 8,419.000

$26.02 $24.15 $17.86 $ 15.04 $13.12 $10.23 $7,97 t

s .

se Officers And Directors

- mny O(ticers llounl of Directors Charles J. Dougherty J. A. Baer 11 Chairman and Chief Executive Officer Management-Business Consultant; Former Chairman and Chief Executive Officer-Stux, William E. Cornelius Baer & Fuller.

President

• W. L. Behan, Jr.

Earl K. Dille Chairman of the Board and Executive Vice President Chief Executive Othcer-Hill-Behan Lumber Company, wholesaler and Stewart W. Smith, Jr. retailer of lumber and allied building Executive Vice President products.

H. Clyde Allen Sam B. Cook Vice President-Research Chairman-Central Bancompany and its and Development subsidiary, Central Bank, which conducts David C. Harrison Vice President-Regional West

• William E. Cornelius President G. J. Haven Vice President-Transmission

• Earl K. Dille and Distobutton Executive Vice President Francis R. Lengefeld

• Charles J. Dougherty Vice President-Engtncenng & Chairman and Chief Executive Officer Construction

• Edwin S. Jones Charles W. Mueller "Former Chairman of the Board-Vice President-Finance Centerre Bancorporation.

Robert O. Piening

• Richard A. Meyer Vice President- Rates **Former President-Anheuser-Busch, Inc.

William A. Sanford Vice President-Industrial Relations John K. Riedy Chairman of the Board-Donald F. Schnell INTERCO, INCORPORATED, a Vice President- Nuclear manufacturer and retailer of consumer products and services.

Charles J. Schukai Vice President-Regional East

• Stewart W. Smith, Jr.

Executive Vice President Edgar J. Telthorst Vice President-Power Operations "Howard L. Young Former President and Chairman-H. E. Wuertenbaecher, Jr. Amencan Zinc Company.

Vice President-Customer Service Donald E. Brandt Controller Isaac B. Grainger rmeesident-Gembal Bank William E. Jaudes General Counsel J. W. McAfee

. Former Chairman of the Board L. A. Esswein Treasurer James C. Thompson

• Member of Executive Committee Secretary ** Member of Auditing Committee

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UNION E LEdCTR I CO M PANY 190 8 GRATIOT STREET ST. Louts, MISSOURI oo~4to r. .ca~=tt April 19, 1984 "'I' "......o.......

                                                               . .too ..
                                                                            .^o x ."l.* * '
       .... .......~,

Mr. Harold R. Denton Director of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, D.C. 20555

Dear Mr. Denton:

ULNRC- 806 DOCKET NO. 50-483 CALLAWAY PLANT, UNIT 1 Transmitted herewith are twenty-five copies of the Union Electric Company, 1983, Annual Report. This information is submitted in accordance with 10CFR50.71(b). Very truly yours, Donald F. Schnell KLM/lw Enclosure f

l cc: Glenn L. Koester Vice President Operations Kansas Gas & Electric P.O. Box 208 Wichita, Kansas 67201 Donald T. McPhee Vice President Kansas City Power and Light Company ' ' 1330 Baltimore Avenue Kansas City, Missouri 64141 Gerald Charnoff, Esq. Shaw, Pittman, Potts & Trowbridge 1800 M. Street, N.W. Washington, D.C. 20036 Nicholas A. Petrick Executive Director SNUPPS 5 Choke Cherry Road Rockville, Maryland 20850 John H. Neisler Callaway Resident Office U.S. Nuclear Regulatory Commission RRil Steedman, Missouri 65077 William Forney , Division of Projects and Resident Programs, Chief, Section lA 's . U.S. Nuclear Regulatory Commission Region III - 799 Roosevelt Road Glen Ellyn, Illinois 60137 Bruce Little - Callaway Resident Office U.S. Nuclear Regulatory Commission RRil , Steedman, Missouri 65077

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