ML042390136
| ML042390136 | |
| Person / Time | |
|---|---|
| Site: | Nine Mile Point  |
| Issue date: | 08/16/2004 |
| From: | Leonard M Constellation Energy Group |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| NMPIL 1858 | |
| Download: ML042390136 (8) | |
Text
w-Constellation Energy*
RO. Box 63 Nine Mile Point Nuclear Station Lycoming, New York 13093 August 16, 2004 NMP1L 1858 ATTN: Document Control Desk Director, Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, D.C. 20555 - 0001
SUBJECT:
Nine Mile Point Units 1 and 2 DocketNos. 50-220 and 50-410 LicenseNos..DPR-63-and.NPF Guarantee of Payment of Retrospective Premiums
Dear Mr. Dyer:
Pursuant to the Commission's requirements stated in 10 CFR 140.21, attached are:
- 1.
A copy of the consolidated statements of income as of June 30, 2004.
- 2.
A copy of the projected cash flow for the twelve months ending December 31, 2004.
- 3.
A narrative statement on curtailment/deferment of capital expenditures (if any) to ensure that retrospective premiums of S10 million per reactor per year for each nuclear incident would be available for payment.
A copy of the 2003 Annual Report to Shareholders of Constellation Energy containing certified financial statements was previously submitted on June 4, 2004 (NMP1L 1838).
If there are any questions on this material, we would be pleased to provide additional
-information.
Very truly y urs, M. Steven Leonard General Supervisor Licensing MSL/RF Attachments cc:
Mr. S. J. Collins, NRC Regional Administrator, Region I Mr. G. K. Hunegs, NRC Senior Resident Inspector Mr. P. S. Tam, Senior Project Manager, NRR (2 copies)
L
ATTACHMENT 1 CONSOLIDATED STATEMENTS OF INCOME AS OF JUNE 30, 2004 Constellation Energy Group Nine Mile Point Nuclear Station August 16,2004
PART 1-FINANCIAL INFORMATION Item 1-Financlal Statements G
a
- AV J
i Constellation Energy Group, Inc. and Subsidiaries 7hree,
2004 Mfonths Ended Six Months Ended Fune 30, June 30.
2003 2004 2003 (In millions. "cept per share amounts)
Revenues Nonregulated revenues
$2,2043
$1,692.2
$4,438.5 S3,233.8 Regulated electric revenues 477.2 436.9 961.6 923.2 Regulted gas revenues 111.5 137.5 4294 435.7 Total revenues 2,793.0 2,266.6 5,829.5 4.592.7 Epen ses rpain ex ens 2,393.9 1,845.4 4,997.3 3,821.6 Impairment foss and other costs 2.6 2
Workforce reduction costs 0.7 1.4 Depreciation and amortization 130.2 116.9 253.2 227.9 Accretion of asse retirement obligations
-12A
_10
.7
_23.5
_ 21.3
-Taxes other than income taxes 62.4 64.3 127.3 130.0 Total expenses 2,601.5 2,038.0 5,403.9 4,202.2 Net Gain on Sales of Investments and Other Assets 4.4 0.5 5.9 14.2 Income from Operations 195.9 229.1 431.5 404.7 Other Income 5.5 6.0 10.3 14.9 Fixed Charges Interest expense 83.5 83.5 168.3 165.8 Interest capitalized and allowance for borrowed funds used during construction (3.2)
(2.8)
(5.8)
(7.2)
BGE preference stock dividends 3.3 3.3 6.6 6.6 Total fixed charges 83.6 84.0 169.1 165.2 Income from Continuing Operations Before Income Taxes 117.8 151.1 272.7 254.4 Income Taxes (13.1) 54.3 29.3 90.6 Income from Continuing Operations and Before Cumulative Effects of Changes in Accounting Principles 130.9 96.8 243.4 163.8 Loss from discontinued operations, net of income taxes of $2.6 and $26.4. respectively (2.7)
(49.0)
Cumulative effects of changes in accounting principles, net of income taxes of 119.5 (198.4)
Net Income (Loss)
$ 128.2
$ 96.8 S 194A
$ (34.6)
Earnings (Loss) Applicable to Common Stock
$ 128.2 S 96.8 S 194.4 S (34.6)
Average Shares of Common Stock Outsanding-Basic 168.7 165.8 168.4 165.4 Average Shares of Common Stock Outstanding-Diluted 169.6 166.2 169.4 165.5 Earnings Per Common Share from Continuing Operaons and Before Cumulative Effects of Changes in Accouning PrinciplesBasic S
0.78 0.58 1.45 S 0.99 Loss from discontinued opertions-Basic (0.02)
(0.30)
Cumultive efecs of chnge in accounting principles-Basic (1.20)
Earnings (Loss) Per Common Share-Basic 5
0.76 S 0.58 S
1.15
$ (0.21)
Earnings Per Common Share-from Continuing Operations and Before Cumulative Effects of Changes in Accounting Principles-Diluted S
0.77 S 0.58 S
1.44
$ 0.99 Loss from discontinued operations-Diluted (0.01)
(0.29)
Cumulative effects of changes in accounting principles-Diluted (1.20)
Earnings (Loss) Per Common Share-Diluted S
0.76 S
0.58 S
1.15
$ (0.21)
-Dividends Decared PerCommon Sharem
-0.285 5
S0.260-S_0.570
_- _S50.520-S 0
llw S
1'l:f sls:l::w l:i's~i,,S S
S Constellation Energy Group, Inc. and Subsidiaries
,hree Months Enaded Six Months Ended June 30, June 30.
2004 2003 2004 2003 (In milliont)
Net Income (Loss)
S 128.2 S
96.8 S 194.4
$ (34.6)
Other comprehensive income (OCI)
Reclassiica'tion of net losses (gains) on sales of securities from OCI to net income, net of taxes 2.3 (0.3)
(0.3)
Reclassification of net gains on hedging instruments from OCI to net income, net of taxes (44.4)
(3-7)
(69.2)
(9.7)
Net unrealized gins on hedng instruments, net ofr taxes 102.5 13.5 198.8 7.5 Net unrealized (losses) gains on securities, net of taxes (12.9) 26.5 14.0 14.8 Comprehensive Income (Loss)
S 173.4 S 135.4 5 337.7 S (22.3)
See Notes to ConoRlidared Financial Statements.
Certain prior-period amounts have been reks/if ed to conform utih the currnt periodl preenttion.
3
i-ATTACHMENT 2 PROJECTED CASH FLOW FOR THE 12 MONTHS ENDING DECEMBER 31, 2004 Constellation Energy Group Nine Mile Point Nuclear Station August 16, 2004
5 Page 1 of 2 Internal Cash Flow Projection For Nine Mile Point Nuclear Station (Presented As Suggested in the Regulatory Guide 9.4, "Suggested Format for Cash Flow Statements Submitted as Guarantees of Payment of Retrospective Premiums")
Percentage Ownership in all Operating Nuclear Units Maximum Total Contingent Liability (000) per Nuclear Incident Payable at Per Year (000)
Nine Mile Point Unit No. 1 100.00%
Nine Mile Point Unit No. 2 82.00%
$201,200
$40,000 2003 Actual
($000)
Net Income 277,300 2004 Projected
($000) 556,000 Less: Dividends Paid Retained Earnings Adjustments:
Depreciation and Amortization (169,200) 108,100 (189,000) 367,000 600,000 708,000 Deferred income Taxes Investment tax credit 109,200 (7,300) 66,000 (7,000)
Allowance for funds Used during construction Total Adjustment Internal Cash Flow Average Quarterly Cash Flow (3,000) 698,900 807,000 201,750 (2,000) 765,000 1,132,000 283,000 CEG Capital expenditures (including nuclear fuel & capitalized Interest)
(695.000)
Page 2 of 2 Constellation Energy Group Underlving Assumptions for Projected Cash Flows (1)
Depreciation is generally computed using composite straight-line rates applied to the average investment in classes of depreciable property. Vehicles are depreciated based on their estimated useful lives.
.(2) -. -Estimates of-Federal income.taxes.and.other..tax-expense are based upon-existing tax laws and any known changes thereto.
(3)
Accounting policies are consistent with those in effect December 31, 2003.
i ATTACHMENT 3 NARRATIVE STATEMENT CURTAILMENT OF CAPITAL EXPENDITURES Constellation Energy Group Nine Mile Point Nuclear Station August 16, 2004
Page 1 of 1 Constellation Energy Group Curtailment of Capital Expenditures
-Estimated construction expenditures including nuclear fuel and Allowance forFunds-. -
Used During Construction for the twelve months ended December 31, 2004 is $695 million. To insure that retrospective premiums under the Price Anderson Act would be available during the aforementioned twelve month period without additional funds from external sources, construction curtailments would affect all construction expenditures rather than impacting a specific project.