ML18093A736

Forwards 1987 Annual Rept for Each Owner & Summary of Owner Projected Internal Cash Flow Statements Showing 1987 Actual & 1988 Projected W/Explanation of Significant Variations

ML18093A736
Person / Time
Site:	Peach Bottom, Salem, Hope Creek, Limerick, 05000000
Issue date:	03/15/1988
From:	Miltenberger S Public Service Enterprise Group
To:	NRC OFFICE OF ADMINISTRATION & RESOURCES MANAGEMENT (ARM)
Shared Package
ML18093A737	List: ML18093A736 ML18093A738 ML18093A739 ML18093A740 ML18093A741
References
NLR-N88026, NUDOCS 8803210492
Download: ML18093A736 (8)

Text

Public Service Electric and Gas Company

• Steven E. Miltenberger Vice President

-Public Service Electric and Gas Company P.O. Box 236, Hancocks Bridge, NJ 08038 609 339-4199 Nuclear Operations March 15, 1988 NLR-N88026 United States Nuclear Regulatory Commission Document Control Desk Washington, DC 20555 Gentlemen:

GUARANTEED RETROSPECTIVE PREMIUMS FOLLOWING NUCLEAR ACCIDENT SALEM AND HOPE CREEK GENERATING STATIONS DOCKET NOS. 50-272/50-311/50-354 FACILITY OPERATING LICENSE NOS. DPR-70, 75 AND NPF-57 Pursuant to the 1975 Amendments to the Price-Anderson Act (Public Law 94-197), the owners of Salem Generating Station, Unit Nos. 1 and 2, and Hope Creek Generating Station, Unit No. 1, submit the following statements and supporting documents to satisfy guarantee requirements as provided under Alternative No. 5: 1. 1987 Stockholders' Annual Report of each owner. 2. Summary of Owners' 1988 Projected Internal Cash Flow Statements supported by individual certified Internal Cash Flow Statements showing 1987 Actual and 1988 Projected with Explanation of Significant Variations.

Similar documents will be filed by Philadelphia Electric Company for the owners of the Peach Bottom Generating Station Units 2 and 3. Sincerely, Enclosures

• Document Control Desk 2 C Mr. R. Wood, Financial Analyst (w/o enclosure)

Off ice of State Programs Mr. G. w. Rivenbark (w/o enclosure)

Licensing Project Manager -Hope Creek Mr. R. W. Borchardt (w/o enclosure)

Senior Resident Inspector

-Hope Creek Mr. D. C. Fischer (w/o enclosure)

Licensing Project Manager -Salem Mr. T. J. Kenny (w/o enclosure)

Senior Resident Inspector

-Salem Mr. D. M. Scott, Chief Bureau of Nuclear Engineering Department of Environmental Protection 380 Scotch Road Trenton, NJ 08628 03/15/88 1-------JOlNT OWNERSHIP OF NUCLEAR GENERATING STATIONS (SALEM AND HOPE CREEK)

SUMMARY

PROJECTED INTERNAL CASH _FLOW STATEMENT FOR THE YEAR 1988 (Thousands of Dollars) Public Service Philadelphia Atlantic City Delmarva Electric and Electric Electric Power & Light Gas Com,12ani ComEanx ComEany Total *-L .. Net Income $517 520 $ 554 806 $ 85 433 $ 81 805 $1 239 564 Less Dividends Paid 449 613 545 402 57 384 73 507 1 125 906 Retained in Business $ 67 907 $ 9 404 $ 28 049 $ 8 298 $ 113 658: Adjustments:

'9 Un recovered Purchased Power Costs $ $ $(18 110) $ $ (18 110') Unrecovered Revenue (50 112) (50 112) Levelized Energy Clause -Net 10 556 10 556 *1 Depreciation 473 836 256 178 54 534 74 500 859 048 Amortization and Other 68 044 (17 120) 15 168 5 635 71 727 Deferred Income Taxes and Investment Tax Credits 66 966 117 609 3 028 22 666 210 269 SFAS 92 Effect (12 872) (12 872) SFAS .90 Effect (14 253) (14 253) Nuclear Fuel -Limerick 28 069 28 069 Allowance for Funds Used During Construction (33 555) (140 405) (3 627) (6 147) (183 734) Total Adjustments

$561 038 $-181 347 $ 61 549 $ 96 654 $ 900 588 Internal Cash Flow $628 945 $ 190 751 $ 89 598 $104 952 $1 014 24fj Average Quarterly Cash Flow $157 236 $ 47 688 $ 22 400 $ 26 238 $ 235 562 Nuclear Generating Stations Percentage of Ownership Salem 1 42.59% 42.59% 7.41%

100% Sa;Lem 2 42.59% 42.59% 7.41% 7.41% 100% Hope Creek 1 95 .-00% 5.00% 100% Maximum Contingent Liability (Severally and not Jointly) $ 18 018 $ 8 518 $ 1 982 $ 1 482 $ 30 000 Net Income Less Dividends Paid Retained in Business Adjustments:

Depreciation and Nuclear Fuel_Burnup Amortization and Other Deferred Income Taxes and Investment Tax Credits Statement of Financial Accounting Standards No. 90 -Regulated Enterprises

-Accounting for Abandonments and Disallowances of Plant Costs (SFAS 90) Allowance for Funds Used During Construction Total Adjustments Internal Cash Flow Average Quarterly Cash Flow PUBLiC SERVICE ELECTRIC AND GAS COMPANY (SALEM AND HOPE CREEK) Projected Internal Cash Flow For Year 1988 -Compared to 1987 Actual (Thousands of Dollars} Actual-1987 Projected-1988 Explanation of Significant Variations

$544 019 445 313 $ 98 706 $450 863 $517 520 449 613 $ 67 907 $473 836 Principally due to increased employee fringe benefits and amortization of property losses. Increased dividends Principally due to full year of Hope Creek No. 19 27 652 68 044 Resumption of Hope Creek 2 amortization, write-down 184 969 (15 011) (52 661) $595 812 $694 518 $173 630 66 966 (14 253) (33 555) $561 038 $628 945 $157 236 of Energy Development Corporation.

Principally decreased Hope Creek No. 1 tax depre-ciation coupled with lower tax rate. Accretion to income of the discount related to* Hope Creek disallowance and various abandonments Principally due to in-service of Hope Creek No. 1 As indicated by this statement, the Average Quarterly Cash Flow fully covers the maximum contingent liability of Public Service Electric and Gas Company which amounts to $18,018,000 as shown on the Summary Sheet "Projected Internal .Cash Flow Statement".

GAS COMPANY DATE March 11, 1988 Parker c. Peterman Net Income Less Dividends Paid Retained in Business Adjustments:

Depreciation Amortization and Other Def erred Income Taxes and Investment Tax Credits Allowance for Funds Used During Construction Total Adjustments Internal Cash Flow Average Quarterly Cash Flow DELMARVA POWER & LIGHT COMPANY Projected Internal Cash Flow Statement For Vear 1988 Compared to 1987 Actual (Thousands of Dollars) Actual -1987 Projected

-1988 Explanation of Significant Variations

$ 79,803 71,432 8,371 $68,907 8,498 30,484 (4,603) 103,286 $111,657 * $ 27,914 $ 81,805 Note 1 73,507 Note 2 8,298 $ 74,500 5,635 Note 3 22,666 Note 4 (6,147) 96,654 $104,952 $ 26,238 The Company has sufficient cash flow to insure that its respective premiums would be available for payment. *Per annual report $123,198.

The difference of $11,541 is due to a different format that was used in annual report, which reflected various working capital items. By Date February 23, 1988 NOTE 1 NOTE 2 ,NOTE 3 NOTE 4 EXPLANATIONS OF SIGNIFICANT VARIATIONS Net income is expected to increase modestly due to higher exoected sales. No significant base rate changes are expected during*1988.

Delmarva increased the annualized common stock dividend rate from $1.41 1/3 to $1.4b in December 1987. Additional common shares are projected to be issued for the DRIP and common share purchase plan commencing during the second quarter 1988. No additional preferred shares, except possibly for refinancing purposes are expected to be issued in 1988. Amortization and Other will decrease due to lower non-cash subsidiary income for leasing activities during 1988. Deferred taxes and ITC, net, are expected to decrease due to the effects of the 1986 Tax Reform Act and lower deferred taxes and ITC associated with non-regulated income.

PHILADELPHIA ELECTRIC COMPANY SYSTEM Projected Internal Cash Flow Statement For Year 1988 -Compared to 1987 Actual (lllousands of Dollars) Net Income Less: Dividends Paid Retained in Business Adjustments:

Unrecovered Revenue Depreciation Def erred Income Taxes and Investment Tax Credits Allowance for Other Funds Used During Construction Nuclear Fuel -Limerick Projected-1988 $554,806 545,402 $ 9,404 $(50,112) 256,178 117,609 (140,405) 28,069 Statement of Financial Accounting Standards No. 92 (12,872) *(17,120)

$181, 347 $190, 751 $ 47, 688 Amortization and Other Total Adjustments Internal Cash Flow Average Quarterly Cash Flow Actual -1987 $542, 396 517, 441 $ $(178, 595) 242,305 181, 369 (106, 680) 36,747 (9' 082) (88,253) $ 77,811 $102,766 $ 25, 692 (1) Significant variation equals $10 million and 10%. The Company has sufficient cash flow to ensure that its respective premiums would be available for payment. Certified M. W. Rimennan Vice President, Finance and Accounting

... Explanation of Significant Variations (1) Third year of revenue phase-in plan. Decrease due to Deferred Fuel and Liberalized Depreciation.

Increased CWIP on Umerick 412. Increase in Deferred Fuel. Date____.._*z/___,_1-/_&<

__

Net Income Less Dividends Retained in Business.

Major Adjustments:

• Depreciation and Amortization Levelized.Energy Clause -Net e Deferred Income Taxes and* Investment Tax Credits Unrecovered Purchased Power.Costs Allowance for Funds Used During Construction .Other

• Total Adjustments Average Quarterly Cash Flow Nuclear Generating Station Percentage Ownership Salem Unit Ill Salem Unit 112 .* Hope Creek Ill Maximum Contingent Liability (Severally and not Jointly) Actual 1987 $ 78,745 $ $ 55,198 23,547 51,080 (36,984) 18,255 (16,910) (3, 197) :l5,991 )8,235 61,782 ----}5.446 ATLANTIC CITY ELECTRIC COMPANY PROJECTED INTERNAL CASH FLOW STATEMENT FOR YEAR 1988 -COMPARED TO 1987 ACTUAL (Thousands of Dollars) Projected 1988 $ 85,433 Explanation of Significant Variations Primarily due to projected rate changes and higher fuel expenses in association with higher KWH sales. $ *$ 57,384 28,049 54,534 10. 556 3,028 (18, 110) (3,627)* 15,168 61,549 89,598 22,400 7.41% 7.41% 5.00% $ 1,982 Projected collection of previously deferred fuel versus actual giveback of previously deferred revenues and deferral .of excess fuel dollars spent over that collected.

Projected effect on the recognition of previously deferred fuel, operation and maintenance costs, and transition adjustments to reflect the expected lower tax rate from those originally used. .* Primarily net changes in working capirtal*items.

As indicated by this statement, the Average Quarterly Cash Flow fully covers the maximum contingent liability of Atlantic City Electric Company which amounts to $1,982,000 as shown above. . ATLANTIC CITY ELECTRIC COMPANY ';'. By ..

.. L. E. C{;(;p;r,

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