<PAGE>
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(X) QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For Quarterly Period Ended September 30, 1994
( ) TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
For The Transition Period From to
Commission file number 1-2967.
UNION ELECTRIC COMPANY
(Exact name of registrant as specified in its charter)
Missouri 43-0559760
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
1901 Chouteau Avenue, St. Louis, Missouri 63103
(Address of principal executive offices and Zip Code)
Registrant's telephone number, including area code: (314) 621-3222
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No .
------- -------
Shares outstanding of each of registrant's classes of common stock as of
October 31, 1994:
Common Stock, $5 par value - 102,123,834
(excl. 42,990 treasury shares)
- --------------------------------------------------------------------------------
- --------------------------------------------------------------------------------
<PAGE>
UNION ELECTRIC COMPANY
----------------------
INDEX
-----
<TABLE>
<CAPTION>
Page No.
Part I Financial Information (Unaudited)
<S> <C>
Balance Sheet --
September 30, 1994 and December 31, 1993 2
Statement of Income --
Three Months, Nine Months and Twelve Months
Ended September 30, 1994 and 1993 3
Statement of Cash Flows --
Nine Months Ended September 30, 1994 and
1993 4
Notes to Financial Statements 5
Management's Discussion and Analysis 6 thru 8
Part II Other Information
</TABLE>
<PAGE>
Page 2
<TABLE>
<CAPTION>
UNION ELECTRIC COMPANY
----------------------
BALANCE SHEET
-------------
(UNAUDITED)
-----------
(Thousands of Dollars)
ASSETS
- ------
September 30, December 31,
1994 1993
------------- ------------
<S> <C> <C>
Utility properties, at original cost:
Electric $8,143,482 $7,916,493
Gas 158,073 149,167
Other 32,954 32,954
---------- ----------
8,334,509 8,098,614
Less accumulated depreciation and amortization 3,247,747 3,078,989
---------- ----------
5,086,762 5,019,625
Construction work in progress:
Nuclear fuel in process 113,983 101,265
Other 110,836 142,656
---------- ----------
Total net utility properties 5,311,581 5,263,546
Other property and investments:
Other property 1,665 1,410
Decommissioning trust fund 52,446 44,420
Other investments 17,942 18,654
---------- ----------
Total other property and investments 72,053 64,484
Regulatory asset - deferred income taxes 735,662 762,331
Deferred charges:
Unamortized debt expense 50,670 53,451
Other 7,262 9,898
--------- ----------
Total deferred charges 57,932 63,349
Current assets:
Cash 2,582 1,297
Temporary cash investments 140,578 -
Accounts receivable - trade less allowance
for doubtful accounts of $6,697 and $6,194,
at respective dates) 230,097 178,559
Unbilled revenue 65,348 79,957
Other accounts and notes receivable 16,675 18,319
Materials and supplies, at average cost -
Fossil fuel 60,595 53,123
Construction and maintenance 95,136 87,450
Environmental bond fund 5,897 17,026
Other 7,410 6,129
---------- ----------
Total current assets 624,318 441,860
---------- ----------
Total Assets $6,801,546 $6,595,570
========== ==========
CAPITAL AND LIABILITIES
- -----------------------
September 30, December 31,
1994 1993
------------- ------------
<S> <C> <C>
Capitalization:
Common stock, $5 par value,
authorized 150,000,000 shares;
outstanding 102,123,834 shares
(excluding 42,990 shares at
par value in treasury) $ 510,619 $ 510,619
Other paid-in capital 717,669 717,669
Retained earnings 1,087,711 977,880
---------- ----------
Total common stockholders' equity 2,315,999 2,206,168
Preferred stock not subject to
mandatory redemption 218,497 218,497
Preferred stock subject to
mandatory redemption 650 676
Capital lease obligation 84,359 68,568
Long-term debt 1,745,585 1,708,585
Unamortized discount and premium on debt (10,273) (10,498)
---------- ----------
Long-term debt, net 1,735,312 1,698,087
---------- ----------
Total capitalization 4,354,817 4,191,996
Accumulated deferred income taxes 1,358,772 1,360,159
Accumulated deferred investment tax credits 174,247 178,887
Regulatory liability 232,248 266,399
Accumulated provision for nuclear decommissioning 54,119 46,093
Other deferred credits and liabilities 120,908 92,227
Current and accrued liabilities:
Current maturity of preferred stock 26 26
Current maturity of capital lease obligation 29,963 30,539
Current maturity of long-term debt 38,000 -
Accounts payable 71,190 153,474
Wages payable 33,017 37,326
Bank loans - 59,600
Income taxes accrued 91,458 25,147
Accumulated deferred income taxes 28,702 28,871
Other taxes accrued 84,542 17,578
Interest accrued 63,910 41,252
Dividends declared 3,301 3,301
Other 62,326 62,695
---------- ----------
Total current and accrued liabilities 506,435 459,809
---------- ----------
Total Capital and Liabilities $6,801,546 $6,595,570
========== ==========
</TABLE>
<PAGE>
Page 3
UNION ELECTRIC COMPANY
----------------------
STATEMENT OF INCOME
-------------------
(UNAUDITED)
(Thousands of Dollars Except Shares and Per Share Amounts)
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended Twelve Months Ended
September 30, September 30, September 30,
------------------- ----------------------- -----------------------
1994 1993 1994 1993 1994 1993
-------- -------- ---------- ---------- ---------- ----------
<S> <C> <C> <C> <C> <C> <C>
Operating revenues (*):
Electric $667,274 $688,649 $1,586,088 $1,580,473 $1,971,594 $1,978,463
Gas 9,899 611 62,653 73,707 88,498 102,055
Other 67 70 343 325 491 438
-------- -------- ---------- ---------- ---------- ----------
Total operating revenues 677,240 689,330 1,649,084 1,654,505 2,060,583 2,080,956
Operating expenses:
Operations
Fuel and purchased power 96,027 130,586 256,906 317,114 352,847 415,197
Other 100,272 103,107 326,144 328,485 443,193 432,792
-------- -------- ---------- ---------- ---------- ----------
196,299 233,693 583,050 645,599 796,040 847,989
Maintenance 49,598 46,141 140,105 127,928 202,275 174,307
Depreciation and nuclear decommissioning 56,762 55,044 168,135 163,830 223,938 218,244
Amortization of phase-in plans deferred costs - - - - - 7,774
Income taxes 106,067 102,135 194,065 176,446 197,094 190,323
Other taxes (*) 63,041 63,804 165,299 161,842 210,369 211,551
-------- -------- ---------- ---------- ---------- ----------
Total operating expenses 471,767 500,817 1,250,654 1,275,645 1,629,716 1,650,188
-------- -------- ---------- ---------- ---------- ----------
Operating income 205,473 188,513 398,430 378,860 430,867 430,768
Other income and deductions:
Allowance for equity funds used during
construction 1,204 1,912 4,340 4,790 5,968 6,200
Miscellaneous, net 160 867 3,259 2,606 4,573 17,057
-------- -------- ---------- ---------- ---------- ----------
Total other income and deductions, net 1,364 2,779 7,599 7,396 10,541 23,257
-------- -------- ---------- ---------- ---------- ----------
Income before interest charges 206,837 191,292 406,029 386,256 441,408 454,025
Interest charges:
Interest (**) 41,673 31,491 107,774 98,015 139,360 130,108
Allowance for borrowed funds used during
construction (1,311) (1,487) (3,838) (4,097) (4,867) (5,310)
-------- -------- ---------- ---------- ---------- ----------
Net interest charges 40,362 30,004 103,936 93,918 134,493 124,798
-------- -------- ---------- ---------- ---------- ----------
Net income 166,475 161,288 302,093 292,338 306,915 329,227
Preferred stock dividends 3,312 3,647 9,939 10,773 13,252 14,288
-------- -------- ---------- ---------- ---------- ----------
Earnings on common stock $163,163 $157,641 $ 292,154 $ 281,565 $ 293,663 $ 314,939
======== ======== ========== ========== ========== ==========
Earnings per share of common stock
(based on average shares outstanding) $ 1.60 $ 1.54 $ 2.86 $ 2.76 $ 2.88 $ 3.08
======== ======== ========== ========== ========== ==========
Dividends per share of common stock $ 0.595 $ 0.58 $ 1.785 $ 1.74 $ 2.38 $ 2.32
======== ======== ========== ========== ========== ==========
Average number of common shares outstanding
(in thousands) 102,124 102,124 102,124 102,124 102,124 102,124
======== ======== ========== ========== ========== ==========
</TABLE>
(*) Includes license and franchise taxes of $32,968,000 and $34,633,000,
respectively, for the three-month periods; $78,456,000 and $78,936,000,
respectively, for the nine-month periods; and $97,311,000 and $98,588,000,
respectively, for the twelve-month periods ended September 30, 1994 and 1993.
(**) Includes annual interest charges on all bonds of $109,639,000 and
$105,497,000, respectively, for the twelve-month periods ended September 30,
1994 and 1993.
<PAGE>
Page 4
UNION ELECTRIC COMPANY
STATEMENT OF CASH FLOWS
(UNAUDITED)
(Thousands of Dollars)
<TABLE>
<CAPTION>
Nine Months Ended
September 30,
----------------------
1994 1993
--------- ----------
<S> <C> <C>
Cash Flows From Operating:
Net income $ 302,093 $ 292,338
Adjustments to reconcile net income to net cash
provided by operating activities:
Depreciation and amortization 161,149 156,864
Amortization of nuclear fuel 32,932 41,628
Allowance for funds used during construction (8,178) (8,887)
Postretirement benefit accrual 19,633 24,411
Deferred income taxes, net (9,038) 39,620
Deferred investment tax credits, net (4,640) (5,882)
Changes in assets and liabilities:
Receivables, net (35,285) (88,790)
Materials and supplies (15,158) 50,330
Accounts and wages payable (86,593) (63,200)
Taxes accrued 133,275 121,560
Interest and dividends accrued or declared 22,658 10,071
Other, net 15,969 (17,026)
--------- ---------
Net cash provided by operating activities 528,817 553,037
Cash Flows From Investing:
Construction expenditures (232,095) (188,551)
Allowance for funds used during construction 8,178 8,887
Nuclear fuel expenditures (12,525) (30,904)
--------- ---------
Net cash used in investing activities (236,442) (210,568)
Cash Flows From Financing:
Dividends on preferred stock (9,939) (10,773)
Dividends on common stock (182,291) (177,696)
Environmental bond funds 11,129 47,500
Redemptions -
Nuclear fuel lease (22,728) (41,909)
Short-term debt (59,600) -
Long-term debt (25,000) (630,500)
Preferred stock (26) (73,751)
Issuances -
Nuclear fuel lease 37,943 30,464
Short-term debt - 28,100
Long-term debt 100,000 411,000
Preferred stock - 74,438
--------- ---------
Net cash used in financing activities (150,512) (343,127)
--------- ---------
Net change in cash and cash equivalents 141,863 (658)
Cash and cash equivalents at beginning of period 1,297 2,257
--------- ---------
Cash and cash equivalents at end of period $ 143,160 $ 1,599
========= =========
Supplemental disclosure of cash flow information:
Cash and cash equivalents include cash
on hand and temporary investments
purchased with a maturity of three
months or less
Cash paid during the period:
Interest (net of amount capitalized) $ 71,646 $ 76,594
Income taxes 141,390 87,550
</TABLE>
<PAGE>
Page 5
UNION ELECTRIC COMPANY
----------------------
NOTES TO FINANCIAL STATEMENTS (UNAUDITED)
Note 1 - Financial statement note disclosures, normally included in financial
statements prepared in conformity with generally accepted accounting
principles, have been omitted in this Form 10-Q pursuant to the Rules
and Regulations of the Securities and Exchange Commission. However,
in the opinion of the registrant, the disclosures contained in this
Form 10-Q are adequate to make the information presented not
misleading. See Notes to Financial Statements included in the 1993
Annual Report on Form 10-K for information relevant to the financial
statements contained in this Form 10-Q, including information as to
the significant accounting policies of the registrant.
Note 2 - In the opinion of the registrant the interim financial statements
filed as part of this Form 10-Q reflect all adjustments, consisting
only of normal recurring adjustments, necessary to a fair statement
of the results for the periods presented. Registrant's financial
statements were prepared to permit the information required in the
Financial Data Schedule (FDS), Exhibit 27, to be directly extracted
from the filed statements. The FDS amounts correspond to or are
calculable from the amounts reported in the financial statements or
notes thereto.
Note 3 - Due to the effect of weather on sales and other factors which are
characteristic of public utility operations, financial results for
the periods ended September 30, 1994 and 1993 are not necessarily
indicative of trends for any twelve-month period.
Note 4 - Electric rates charged to customers provide for recovery of Callaway
Plant decommissioning costs over the life of the plant, based on an
assumed 40-year life, ending with expiration of the plant's operating
license in 2024. The Callaway site is assumed to be decommissioned
using the DECON (immediate dismantlement) alternative.
Decommissioning costs, including decontamination, dismantling and
site restoration, are estimated to be $372 million in current year
dollars and are expected to escalate 4.5% per year through the end of
decommissioning activity in 2033. Decommissioning costs are charged
to depreciation expense over Callaway's service life and amounted to
$6.7 million in 1993 and $5.0 million in the first nine months of
1994. Every three years, the Missouri Public Service Commission
(MoPSC) requires the registrant to file updated cost studies for
decommissioning Callaway and rates may be adjusted at such times to
reflect changes in assumptions. The MoPSC has approved the costs
currently being collected from customers and deposited in an external
trust fund established to provide for Callaway's decommissioning.
Fund earnings are expected to average 10.4% thru 2017 and 8.4%
thereafter until 2033. If the assumed return on trust assets is not
earned, the registrant believes it is probable that such earnings
deficiency will be recovered in rates. Trust fund earnings, net of
expenses appear on the balance sheet as increases in Nuclear
decommissioning trust fund and in the Accumulated provision for
nuclear decommissioning.
<PAGE>
Page 6
UNION ELECTRIC COMPANY
----------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF THE RESULTS OF OPERATIONS
Third quarter 1994 common stock earnings were $163.2 million, an increase of
$5.5 million from the third quarter of 1993. Earnings of $1.60 per share in the
third quarter of 1994 were 6 cents higher than in the comparable 1993 period.
Common stock earnings for the nine months ended September 30, 1994 were
$292.2 million, an increase of $10.6 million from the same period in 1993.
Earnings of $2.86 per share during the nine months ended September 30, 1994 were
10 cents higher than in the comparable 1993 period.
Common stock earnings for the twelve months ended September 30, 1994 totaled
$293.7 million, a $21.3 million decrease from the preceding twelve-month period.
Per share earnings of $2.88 during the twelve months ended September 30, 1994
decreased 20 cents from the twelve months ended September 30, 1993.
The increased earnings for the three and nine months ended September 30, 1994
over the comparable 1993 periods, are primarily due to lower electric fuel and
purchased power costs. Partially offsetting these benefits were increased
expenses, higher taxes and greater interest charges.
The lower earnings for the twelve months ended September 30, 1994 versus the
prior twelve-month period reflects an $18 million net gain on the sale of
registrant's Iowa and northern Illinois electric properties in December, 1992,
higher income taxes from increased federal and Missouri rates, greater non-fuel
operations and maintenance expenses and increased interest expenses, partially
offset by lower fuel prices. The higher operations and maintenance expenses
result from a Callaway plant nuclear refueling in the Fall of 1993 and accruing
postretirement benefits costs beginning in January, 1993.
The impact of the more significant items affecting revenues, costs and
earnings during the three-month, nine-month and twelve-month periods ended
September 30, 1994 and 1993 is detailed below:
Electric Operating Revenues
- ---------------------------
<TABLE>
<CAPTION>
(Millions of Dollars)
Variations for periods ended September 30, 1994
from comparable prior periods
----------------------------------------------------
Three Months Nine Months Twelve Months
--------------- ---------------- ----------------
<S> <C> <C> <C>
Rate variations.............. $ - $ - $ (8.4)
Effect of abnormal weather... (31.6) (23.5) (27.3)
Growth and other............. 10.2 29.1 28.8
------ ------ ------
$(21.4) $ 5.6 $ (6.9)
------ ------ ------
</TABLE>
Third quarter 1994 kilowatt-hour sales declined 1 percent from the same
quarter of 1993, primarily due to milder weather this summer. Residential sales
dropped 9 percent while less weather-sensitive commercial and industrial sales
rose 3 percent and 4 percent, respectively.
Kilowatt-hour sales for the nine months ended September 30, 1994 were 2
percent higher than the comparable 1993 period. Residential sales declined 2
percent but commercial and industrial sales, reflecting an improving economy,
increased 4 percent and 2 percent, respectively.
Kilowatt-hour sales during the twelve months ended September 30, 1994 were up
1 percent from the twelve-month period ending September 30, 1993. Residential
and industrial sales fell 1 percent and 2 percent, respectively, while
commercial sales rose 4 percent.
<PAGE>
Page 7
UNION ELECTRIC COMPANY
----------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF THE RESULTS OF OPERATIONS (Continued)
Operating Expenses
- -----------------
<TABLE>
<CAPTION>
(Millions of Dollars)
Variations for periods ended September 30, 1994
from comparable prior periods
-----------------------------------------------
Three Months Nine Months Twelve Months
-------------- ----------- ----------------
<S> <C> <C> <C>
Fuel:
Variation in generation............................. $ 25.3 $ 23.7 $ (.6)
Price............................................... (20.4) (51.5) (45.8)
Amortization of uranium litigation settlement....... - - (.1)
Generation efficiencies............................. (5.3) (8.2) (14.2)
Department of Energy assessment..................... .6 1.4 1.8
Net Interchange sales and purchased power variation.. (34.8) (25.6) (3.4)
------ ------ ------
$(34.6) $(60.2) $(62.3)
------ ------ ------
</TABLE>
The decreased fuel and purchased power costs during the three-month and nine-
month periods ended September 30, 1994 versus the comparable periods in 1993,
reflect increased fossil fuel generation, resulting from the absence this year
of the flood-interrupted coal deliveries that reduced 1993 generation. The
effect of increased generation was offset by lower fuel prices, greater
generating efficiencies and reduced net purchased power costs.
The decreased fuel costs for the twelve months ended September 30, 1994,
versus the twelve months ended September 30, 1993, reflect lower fuel prices,
increased generating efficiencies and reduced net purchased power costs.
Other operating expense variations reflect recurring conditions such as
growth, inflation and wage increases. During the three months ended September
30, 1994, versus the comparable 1993 period, operations expenses, other than
fuel and purchased power, decreased $3 million, primarily due to decreased
employee welfare costs, reduced audit and regulatory expenses and lower material
and equipment expenses. Maintenance expenses during the same period increased
$3 million, primarily reflecting increased expenses at our fossil-fueled power
plants.
During the nine months ended September 30, 1994, versus the comparable 1993
period, operations expenses, other than fuel and purchased power, decreased $2
million, primarily due to lower employee welfare costs and lower material and
equipment expenses. Maintenance expenses during the same period were $12
million higher due to increased power plant maintenance and higher tree-trimming
costs.
For the twelve months ended September 30, 1994, versus the prior twelve-month
period, operations expenses, other than fuel and purchased power, increased $10
million, primarily due to a $3 million increase in accruing employee
postretirement benefit expenses, a $3 million increase in injuries and damages,
a $2 million increase in professional services, a $1 million increase in
computer related expenses and a $1 million increase in labor costs. Maintenance
expenses during the same period increased $28 million primarily due to the
Callaway plant nuclear refueling outage in the Fall of 1993 and increased power
plant maintenance.
Depreciation expense for the three-month, nine-month and twelve-month periods
ended September 30, 1994, versus the comparable 1993 periods increased $2
million, $4 million and $6 million, respectively, primarily due to increases in
depreciable property.
Elimination of the phase-in credits associated with the registrant's nuclear
plant phase-in plan reduced operating expenses by $8 million for the twelve
months ended September 30, 1994.
Other taxes charged to operating expenses during the three-month and twelve-
month periods ended September 30, 1994, versus the comparable prior periods,
dropped $1 million in each period, primarily due to decreased gross receipts
taxes associated with lower revenues.
Other taxes charged to operating expenses for the nine-month period ended
September 30, 1994, versus the comparable prior year period, increased $3
million due to higher real estate taxes.
<PAGE>
Page 8
UNION ELECTRIC COMPANY
----------------------
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF THE RESULTS OF OPERATIONS (Continued)
Operating Expenses (Continued)
- ------------------
Income taxes charged to operating expenses during the three and nine months
ended September 30, 1994, versus the comparable prior periods, increased $4
million and $18 million, respectively, primarily due to higher pre-tax income
and increased Missouri income tax rates. During the twelve months ended
September 30, 1994, versus the twelve months ended September 30, 1993, income
taxes increased $7 million primarily due to increased federal and Missouri
income tax rates.
Other Income and Deductions
- ---------------------------
Miscellaneous other net income and deductions decreased $12 million for the
twelve months ended September 30, 1994, versus the twelve months ended September
30, 1993, reflecting the gain on the sale of the registrant's Iowa and northern
Illinois electric distribution properties in December 1992, partially offset by
higher other income and lower miscellaneous income deductions.
Interest
- --------
During the three-month, nine-month, and twelve-month periods ended September
30, 1994, versus the comparable 1993 periods, interest increased $10 million,
$10 million and $9 million, respectively, reflecting increased debt outstanding
and higher interest rates on variable rate debt.
Allowance for Funds Used During Construction (AFC)
- --------------------------------------------------
Variations in AFC track variations in construction work in progress and were
not significant for the reporting periods. During the twelve-month periods
ended September 30, 1994 and 1993, AFC rates averaged 8.8 percent and 7.4
percent, respectively.
MANAGEMENT'S DISCUSSION AND ANALYSIS
OF FINANCIAL CONDITION
Liquidity and Capital Resources
- -------------------------------
As of September 30, 1994 the registrant had temporary cash investments of
$140,578,000.
<PAGE>
PART II. OTHER INFORMATION
<TABLE>
<CAPTION>
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
--------------------------------
<S> <C> <C>
(a) Exhibits.
Exhibit 12(a) - Computation of Ratio of Earnings to Fixed
Charges, 12 Months Ended September 30, 1994.
Exhibit 12(b) - Computation of Ratio of Earnings to Fixed
Charges and Preferred Stock Dividend
Requirements, 12 Months Ended September 30,
1994.
Exhibit 27 - Financial Data Schedule
(b) Reports on Form 8-K. None
</TABLE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
UNION ELECTRIC COMPANY
(Registrant)
November 10, 1994 By /s/ Donald E. Brandt
---------------------------------------
Donald E. Brandt
Senior Vice President
Finance and Corporate Services
<PAGE>
EXHIBIT 12(a)
UNION ELECTRIC COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
<TABLE>
<CAPTION>
12 Months
Year Ended December 31, Ended
------------------------------------------------------- September 30,
1989 1990 1991 1992 1993 1994
------- -------- --------- --------- -------- ------
<S> <C> <C> <C> <C> <C> <C>
(Thousands of Dollars Except Ratios)
Net Income for the Period..... $285,605 $294,219 $321,512 $302,748 $297,160 $306,915
-------- -------- -------- -------- -------- --------
Add:
Taxes Based on Income......... 181,793 191,532 218,954 197,009 182,716 197,442
-------- -------- -------- -------- -------- --------
Fixed Charges:
Interest on Debt............ 172,288 183,215 163,061 125,798 124,430 133,859
Amortization of Premium
and Discount, Less
Expense, on Debt; and
Bond Defeasance Cost........ 4,283 4,369 4,148 9,521 5,170 5,501
Rentals (See Note).......... 1,040 1,114 1,171 908 1,314 1,381
-------- -------- -------- -------- -------- --------
Total Fixed Charges........ 177,611 188,698 168,380 136,227 130,914 140,741
-------- -------- -------- -------- -------- --------
Earnings Available for Fixed
Charges...................... $645,009 $674,449 $708,846 $635,984 $610,790 $645,098
======== ======== ======== ======== ======== ========
Ratio of Earnings to Fixed
Charges...................... 3.63 3.57 4.21 4.66 4.66 4.58
======== ======== ======== ======== ======== ========
</TABLE>
Note: Represents the interest factor applicable to rentals.
<PAGE>
EXHIBIT 12(b)
PAGE 1 of 2
UNION ELECTRIC COMPANY
COMPUTATION OF RATIO OF EARNINGS TO FIXED CHARGES
AND PREFERRED STOCK DIVIDEND REQUIREMENTS
<TABLE>
<CAPTION>
Year Ended December 31,
------------------------------------------------
12 Months
Ended
September 30,
1989 1990 1991 1992 1993 1994
-------- -------- -------- -------- -------- --------
<S> <C> <C> <C> <C> <C> <C>
(Thousands of Dollars Except Ratios)
Net income for the period................. $285,605 $294,219 $321,512 $302,748 $297,160 $306,915
Add:
Taxes based on income................... 181,793 191,532 218,954 197,009 182,716 197,442
Fixed charges (see below)............... 177,611 188,698 168,380 136,227 130,914 140,741
-------- -------- -------- -------- -------- --------
Earnings available for fixed
charges and preferred stock
dividend requirements of Company......... $645,009 $674,449 $708,846 $635,984 $610,790 $645,098
======== ======== ======== ======== ======== ========
Fixed charges:
Interest on debt........................ $172,288 $183,215 $163,061 $125,798 $124,430 $133,859
Amortization of premium and
discount, less expense, on
debt; and bond defeasance
cost................................... 4,283 4,369 4,148 9,521 5,170 5,501
Rentals (see note)...................... 1,040 1,114 1,171 908 1,314 1,381
-------- -------- -------- -------- -------- --------
Total fixed charges.................... $177,611 $188,698 $168,380 $136,227 $130,914 $140,741
Preferred stock dividend requirements
of Company *(Adjusted for income
tax effect).............................. 29,994 22,901 22,213 21,852 21,537 20,605
-------- -------- -------- -------- -------- --------
Total fixed charges and preferred
stock dividend requirements.............. $207,605 $211,599 $190,593 $158,079 $152,451 $161,346
======== ======== ======== ======== ======== ========
Ratio of earnings to fixed charges
and preferred stock dividends............ 3.11 3.19 3.72 4.02 4.01 4.00
======== ======== ======== ======== ======== ========
</TABLE>
Note: Represents the interest factor applicable to rentals.
* See following page for supporting computation.
<TABLE> <S> <C>
<PAGE>
<ARTICLE> UT
<LEGEND> This schedule contains summary financial information extracted from
the Balance Sheet, the Statement of Income and the Statement of Cash Flows and
is qualified in its entirety by reference to such financial statements.
</LEGEND>
<MULTIPLIER> 1,000
<CURRENCY> U.S. Dollars
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1994
<PERIOD-START> JAN-01-1994
<PERIOD-END> SEP-30-1994
<EXCHANGE-RATE> 1
<BOOK-VALUE> PER-BOOK
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650
218,497
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26
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<OTHER-INCOME-NET> 7,599
<INCOME-BEFORE-INTEREST-EXPEN> 406,029
<TOTAL-INTEREST-EXPENSE> 103,936
<NET-INCOME> 302,093
9,939
<EARNINGS-AVAILABLE-FOR-COMM> 292,154
<COMMON-STOCK-DIVIDENDS> 182,291
<TOTAL-INTEREST-ON-BONDS> 109,639
<CASH-FLOW-OPERATIONS> 528,817
<EPS-PRIMARY> 2.86
<EPS-DILUTED> 2.86
</TABLE>
