ML17300A310

Forwards Sale & Leaseback Transactions Re Palo Verde Nuclear Generating Station,Unit 2, Providing Interim & Annual Financial Statements for Each Equity Investor

ML17300A310
Person / Time
Site:	Palo Verde
Issue date:	08/06/1986
From:	Toy T MUDGE, ROSE, GUTHRIE, ALEXANDER & FERDEN
To:	Knighton G Office of Nuclear Reactor Regulation
Shared Package
ML17300A311	List: ML17300A310 ML17300A312
References
NUDOCS 8608080111
Download: ML17300A310 (6)

Text

REQULA Y INFORNATIGN DISTRIBUTI YSTEt'1 (R IDS)

ACCESSION NBR: 86080801 11 DOC. DATE: 86/08/06 NOTARIZED: NO DOCKET FACIL: STN-50-529 Palo Verde Nuclear Station> Uni t 2> Arixona Publi 05000529 TGY> T. N..

AUTH. MANE RECIP. NANE AUTHOR AFFILIATION Nudge> Rose> Guthrie> Alexander 5 Ferden RECIPIENT AFFILIATION KNlQHTON> Q. W PWR Prospect Directorate 7

SUBJECT:

Forwards "Sale 5 Leaseback Transactions Re Palo Verde Nuclear Generating Stati,on> Unit 2> " providing inter im 0 annual financial statements. for ach equity investor.

DISTR IBUTION CODE: A001D A COPf(w~<M IES RECEI: LTR ENCL SI ZE:

TITLE: OR Submittal: General Distribution NOTES: Standardi zed plant. 05000529 RECIPIENT COPIES RECIPIENT COPIES ID CODE/NANE LTTR ENCL ID CODE/MANE LTTR ENCL PWR-B EB PWR-B PEICSB PWR-B FGB l PWR-B PD7 LA PWR-B PD7 PD 01 5 L I C ITRA> E PWR-B PEICSB 1 PWR-B RSB 1 INTERNAL: ACRS 09 ADN/LFNB ELD DS 1 0 NRR/GRAS REQ FI 04 1 f$ RQN5 EXTERNAL: EQSQ BRUSKE> S LPDR 03 NRC PDR 02 1 NSIC 05 TOTAL NUMBER OF COPIES REQUIRED: LTTR 28 ENCL

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MUDGE ROSE GUTHRIE ALEXANDER K FERDON 2I2I K STREET, N.W. l60 IYIAIDEN LANE SUITE 000, NORTHBRIDOC CENTRE WASHINOTON, O,C 20037 5 I 5 NOR TH FIA0LC R 0 0 I VC 202 420 035S NEW YORK, N. Y. I0038 WEST PALM BL'ACH. FL. 3340I 305 550 BIOO SUITE 2020 333 SOUTH ORAND AVENUE 2I2-SIO-7000 l2, RUC OC LA PAIX LOS ANOCLCSp CALIF. 0007I 7S002, PARIS, FRANCL 2 I3 BI 3 I I I 2 CABLC ADDRCSS: BALTVCHINS NCW YORK II) 42. dl. 57. 7I TELCXI WV I27550 TELECOPICRI 2I2 248 2055 August 6, 1986 Director of Nuclear Reactor Regulation Attention: Mr. George W. Knighton, Project Director PWR Project Directorate 47 Division of Pressurized Water Reactor Licensing-B Nuclear Regulatory D.C. 20555 Commission'ashington, Re: Application in Respect of Sale and Leaseback Transactions by Arizona Public Service Company Dated May 2, 1986 Palo Verde Nuclear Generating Station Unit 2 (Docket No. STN 50-529)

FINAL EQUITY INVESTOR LIST

Dear Mr. Knighton:

By letter dated August 2, 1986, Arthur C. Gehr of Snell 6 Wilmer, on behalf of Arizona Public Service Company (APS), submitted to the Commission APS's "Additional Information with Respect to the Application in Respect, of Sale and Leaseback Transactions by Arizona Public Service Company, dated May 2, 1986." In that submission, APS undertook to provide the Commission with certain information concern-ing prospective Equity, Investors with respect to APS's interest in Palo Verde Nuclear Generating Station (PVNGS) Unit 2. A similar undertaking was made at, Paragraph 6 of the above-captioned application.

Sb08080111 8b080b PDR ADOCK 05000529 I PDR 6728.10.2898.01: 1

Following is a table which shows the identity of the parent company of each Equity Investor from whom a commitment has been received or may be received and the expected amount of the equipment cost involved.

Prospective Equipment E uit Investor> Cost Equii~t2 Debt2 Security Pacific, Corporation $ 150,000 F000 20% 80%

Emerson Electric Corporation> 100 F000 F000 20 80 Safety-Kleen Corp.4 100g000,000 20 80 BATUS Inc.4,5 75,000g000 20 80 Citizens Utilities Company 4,6 100 i 000 i 000 20 80 TOTAL $ 525i000,000 7 (1) The prospective Equity Investor will be a direct or indirect subsidiary or affiliate of the named corporation.

(2) Approximate, with an equity range of 20% to 23%.

(3) Financial information previously provided by Public Service Company of New Mexico (PNM) in Docket No. STN 50-529 in connec-tion with PNM's sale and leaseback transactions.

(4) Participation is subject to board of director or other internal approvals; (5) The U. S. subsidiary of British-American Tobacco Company Limited.

(6) This company provides electric service to the public in certain cities in Arizona (Nogalis, Kingman and Havasu City, among 'mall others) and is a wholesale purchaser of electric energy from

'APS.

(7) Aggregate equipment cost may increase to $ 650,000,000 if one or more prospective Equity Investors increase the amount of their commitment with respect to equipment Cost.

6728.10.2898.01:1

Enclosed herewith are the- currently available interim and annual financial statements for each of the Equity Investors identi-fied above (other than the one for which such information was pro-vided by Public Service Company of New Mexico under cover of letters dated June 10 and July 29, 1986 and f iled in the above-captioned Docket) . As the application makes clear, no Equity Investor will, as a result of its interest in PVNGS Unit 2, have any liability for pay-ment of operation or decommissioning costs or costs of capital improvements for such unit. APS is and remains responsible for these and similar items.

Inf ormation wit'h respect to the prospective Equity Investors has been provided to assist the Staff in its review of the APS sale and 1'easeback transactions. Counsel to the Equity Investors have requested that the information so provided, including informa-tion as to their identity and their affiliations, not be used for any other purpose..

If I can be of further assistance, please do not hesitate to call.

Sincerely,

)u,42 i Timothy Michael T y Copies with enclosure to:

Edward S. Christenbury, Esq.

Assistant General Counsel for Hearings Nuclear Regulatory Commission 7735 Old Georgetown Road Bethesda, Maryland 21930 Edwin J. Reis, Esq.

Deputy Assistant General Counsel Nuclear Regulatory Commission .

7735 Old Georgetown Road Bethesda, Maryland 21930 Mr. James C. Peterson Nuclear Regulatory Commission Air Rights III Building 4550 Montgomery Avenue Bethesda, Maryland 20814 6728. 10. 2898 01: 1

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Oreste R. Pirfo, Esq.

Attorney Nuclear Regulatory Commission 7735 Old Georgetown Road Bethesda, Maryland 21930

'Arthur C. Gehr, Esq.

Snell & Wilmer 3100 Valley Bank Center Phoenix, Arizona 85073 Jon S. Cohen, Esq.

Snell a Wilmer 3100 Valley Bank Center Phoenix, Arizona 85073 Mr. Paul A. Williams Vice President and Treasurer Arizona Public Service Company 411 North Central Avenue Phoenix, Arizona 85072 6728. 10. 2898. 01: 1