ML20003F470
| ML20003F470 | |
| Person / Time | |
|---|---|
| Site: | Quad Cities  |
| Issue date: | 04/16/1981 |
| From: | Hartman E IOWA-ILLINOIS GAS & ELECTRIC |
| To: | Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8104210329 | |
| Download: ML20003F470 (4) | |
Text
IOWA-ILLINOIS GAS AND ELECTRIC COMPANY CAvENPORT s0WA EDWARD J MARTUAN 4 k,g f
/
April 16, 1981/cV vaa ~ o-c~w Antitrust and Indemnity Group y
,Q go[..
Nuclear Reactor Regulation e pp, N jo.-, 8 Nuclear Regulatory Commission m
'p k
g Washington, D. C.
20555 c,
Re:
Docket Nes. 50-254 and 50-26 f
Gentlemen:
We are submitting the following information to comply with the provisions of 10 CFR Chapter I, Part 140, Section 140.21, and the letter from Jerome Saltzman, Chief, Antitrust and Indemnity Group, dated June 15, 1977:
(1) annual report of this Company for the calendar year 1980 which shows its income statement and balance sheet, duly certified by the Company's public accountants, and which includes a summary 1
statement for the last auarter of the year; (2) a statement of internal cash flow projected for 1981 and actual for 1980 and (3) a narrative statement to which the cash flow projection is annexed, explaining the projection, dealing with capital expenditures which might be curtailed should that become necessary, and establishing the availability of adequate funds to meet the Company's obligation for the payment within three months of April 1, 1981 of the Company's maximum liability for retrospective premiums.
Iowa-Illinois c., and Electric Company has a one-quarter share in the ownership of Quad-Cities Units 1 and 2; the three-quarters share is owned by Commonwealth Edison Company who has submitted a separate statement under date of March 27, 1981.
Very truly yours, EJH:pc Encls cc:
Hubert H. Nexon Senior Vice President Commonwealth Edison Company gf s
I
///
e
o IOWA-ILLINOIS GAS AND ELECTRIC COMPANY MEMORANDUM ACCOMPANYING PROJECTED COMPANY CASH FLOW STATEMENT FOR YEAR ENDING DECEMBER 31, 1981 The attached statement shows that internal cash flow projected for the year 1981 for Iowa-Illinois Gas and Electric Company is expected to total $56.5 million, and on an average quarterly basis to total $14.1 million.
The maximum total contingent liability for premium assessments against the Company as a licensee of nuclear power reactors is SS million (25 percent tenant-in-common interest in the two units at Quad-Cities Station).
Cpmmonwealth Edison Company, the other tenant-in-common, is filing a separate statement.
Funds for the payment of the $5 million possible maximum premium assessments could be diverted from the construction program and made available from internal cash generation or from other sources.
The Company's high credit ratings assure ready access to the capital markets -- both long-term and short-term.
The Company has an Aa credit rating from Moody's Investors Service, Inc. and an AA credit rating from Standard and Poor's Corporation applicable to its mortgage debt.
It also has the highest credit ratings possible -- PRIME-1 from j
Moody's and A-1 from Standard & Poor's -- applicable to its commercial i
paper.
In addition, the Company has back-up lines of credit totaling
$48 million at prime rates with commercial banks, and presently has outstanding no borrowings under these lines.
As of March 31, 1981 the Company had $11.5 million of commercial paper outstanding.
These high credit ratings and credit arrangements provide the means to raise additional capital at relatively favorable rates.
The attached cash flow statement projected for 1981 reflects the i
net effect of a requirement of $33.5 million for cash dividends on l
capital stock.
Cash dividends on the Company's stock cannot be considered obligatory and because they are subject to declaration from time to time by the Company's Board of Directors they could, if necessary, provide the means for making additional cash available for other uses.
Without curtailing dividends or resorting to additional short-term financings, the Company could, if necessary, delay substantial portions of its construction program, thereby reducing its cash requirements for that program during the period of delay and making cash available to meet assessments, although such action would increase the costs of plant construction.
Although the Company is participating in several jointly-owned electric generation and transmission construction projects, the provision of $5.0 million for retrospective premiums should not significantly affect completion of these projects. Deferrals of expenditures on electric and distribution projects could also be made.
t The undersigned certifies that the foregoing memorandum with respect to Iowa-Illinois Gas and Electric Company's projected cash flow for the year ending December 31, 1981, and the appended cash flow statement are true and correct to the best of his knowledge and belief.
i
[
D.
H.
Shaw Vice President - Finance f
April 13, 1981 l
i
IOWA-ILLINOIS GAS AND ELECTRIC COMPANY Internal Cash Flow 1980 Actual and 1981 Projected 1980 1981 Actual Projected (S000)
($000)
Net Income After Taxes S 34,973 S 48,844 Less Dividends Paid 28,316 33,500 3
6,657 S 15,344 Adjustments Depreciation and Amortization S 32,578 S 39,600 Deferred Income Taxes and Investment Tax Credits 16,869 19,000 Allowance for Funds Used During Construction (12,578)
(17,400)
Total Adjustments S 36,869
$ 41,200 Internal Cash Flow S 43,526 S 56,544 Average Quarterly Cash Flow S 10,882 S 14,136 Percentage Ownership Quad-Cities Nuclear Power Station 25.00%
MAXIMUM TOTAL CONTINGENT LIABILITY
$5,000,000 i
. -