ML18017A022

Forwards Addl Info in Response to Requesting Financial Info of Certain Electric Facilities from Metropolitan Edison Co

ML18017A022
Person / Time
Site:	Susquehanna
Issue date:	02/09/1979
From:	Curtis N PENNSYLVANIA POWER & LIGHT CO.
To:	Zelinsky W Office of Nuclear Reactor Regulation
References
NUDOCS 7902200072
Download: ML18017A022 (45)

Text

EXMEBIT E PPai WO "(ORTH NINTH 5T255 T, iLL5NTOWN, PA. Ialol

)HO'(E( (2(5) 52 I ~ 5'l5 I Februa~-9, 1979 lir. William !i. Zel'nsky Electr'cal Engineer Powe Supply Analysis Section Office of Nuclea= Reactor Regulat'on U.S. Nuclear Regulatory Commission T(I'ashington, DC 20555 SUSQUEHAViiNA SES REQUEST

."OR ADDITIONAL T(('OWATION ER 100450 PILE 841-2 PTD-3ZI Docket Nos.

50-387 and 50-388

Dear !ir. Zelinsky:

The attached information i.s in response to your letter of December 11, 1978.

If you have any questions on this material, please let me know.

Very truly yours, 21G/cak 790 'Oor'?"".

acg~5T( VASIp )O'N52 g 'O'(I 2 rOH)A>,

'<<%o initiat d the pu=chase of the elec="

c properties of EEC'?

Way~

See Item Ll, Pages 5 and 6, and Item L4, Page 7 of PPGL's applicatioa to the Pennsylvania Puolic Utility Commission for approval of the pu"chase.

Copies of this ~ormatioa are attached.

I

~

~ ~

thereof af indebtedness az 2C to Hershey "-states.

PP5L estimates tha-the total con'sid rat'on wh'ch wiLL oe payable by PP4L to Hershey Estates for the cap tal stock of HZC and the Not wiLL

'mount to approximately

$ S,000,000 including the.epayment of debt.

Consummation of the proposed transac

'on is to be completed on the 30th day (or the next business day i= such i0th day falls on a Saturday, Sunday or holiday) after the date when the last of all necessary regulatory approvals has been

". c 'ed by PP$ L, unless a mutually agreeable earl'er date

=or th closing of the proposed transact on is established by PP4L, Hershey usta-es and WC.

11.

The Purchase Agreement resulted

==om arm'-length negotiations bei~een PP)L and Hershey Estates, Hershey "-stat s

having f'rst contacted PP4L in ApriI 1975 to adv'se PP(L of the intention o= Hershey Estates to sell i.ts interest i H:-C.

At tha"

time, PP4L was advised by Hershey Estates t.'cat Hershey

"=states

was, in add'tion to contact'ng PP4L, in communication with 'Metropolitan

"'dison Company Pfet Ed),

and that proposals to purchase th capita'toic oz H

C would be reauest d by Hershey usta es

==ax PP4L and Met Ed.

Pollowing a series af meetings in which..4L " auestea, and He-shey "-states and HEC suppliedp in armatian wit% res~ect to Qe facil ties and operat'ons ax p~C)

. qL subm tted a'proposal

~

aated.

Gc-aber 7,

3.975, a copy o= which is attached her to as Exhibi

< and made a part her o=, to purchase the cap'tal stock a

i' ar cash Hershey =states, by letter dated Cctaoer 15

19 7$ p a copy o = wh'h is attached hereto as 2.-4ib': L and made a part he= of, acc pt d the o="fer suomitted by PPjL as the oasis for negotiation of the Ag cement.

12.

HEC, having no gene ation capabity of its own, currently purchases all of its requirements

=or el ctric gave" anc'he ene gy assoc'ated ther v.'th,

~rom )et 2d, a subsidiary company of General Pub 1' Uti' ties Corporation (G?U).

L3.

A 220-69 KV substation of ?PAL is Loca" d appro-"-

mately tvo m'les

~om He=shey and the electric facilities o=

HZC are capable of ohysical interconnection with the faciliti s of PPgL.

PP4L plans to effect such int rconnection a

a future date by constructing a transmission line ~rom its 220-69 KV substation to the facili ies o= MC in Hershey.

Tt is,

however, PP5L's current. intention, provided that the negotiations currently being conducted between- ?P<L and Net

"=d are succ ssful'y concluded, that, until the loads served by hcC increase to'.a<po at requiring the instaLLation of additional faciliti s,~?owe:.,r qu'r c by HZC will be supplied from PP5L's system

~Hough ei's-ng'trans-mission =acil'ti s between Met Ed and ~C under cont"actual;a..an-e-.

ments to be filed w th, and made eff ctiye by,~~

Pede al.?ower I

Commiss'on under the Federal ?over'ct,,

The 'zacilit'es o= PP4L and those o= Net

"=d ar phys ical' and Met Fd as memoars rconnec=ed at a number o" 1ccat'ons operate the'r fac'1'ties in conjunction o= the P 'M Interconn t'cn.

and oo:n PP4L w~ ~5 each othe It is also PP4L's 'ntention eventually to merge C into PP5L and, ollowing such merger, to maRe the appropr=a:

PP4L-rates applicable to HiC's customers.

14.

PP4L bel'eves that the proposed transaction is in the public nterest and in the int rest of investors and consumers becaus the completion o" the proposed transaction will t nd toward the economical and efficient development of PP(L's integrated

-e4ec ric system and that ultima e'y the rat s which PP4L charges its cmtome s will be made applicable to the customers o= H:-C, such rates presently being lowe" in general than the rates charged by h=C o 'ts customers and lowe than the ra" s charged by Met id to the retail customers o" Met "-d.

PP4L also submits that the consideration to be paid by PP5L to Hershey estates for the capital stock of HEC bears a fair relat'on to the sums invested in PZC and to the utility assets of HiC uxderlyipg 'the securit'es proposed to be

'y PP4L of the securities acquired by PPCL; that the acqu'si

'on of MC will not unduly compl'cat the capital structure of ?PAL; and that the proposed not be detrimental to the public 'nterest or the t.ansaction wi'1

'I ts rest oI investors or consume s or the prope.

action'ag of the P?4L system.

15.

Under Section 9(a) (2) of the Publ'c U ill "y Holdin ~

Company Act of 19'~,

as

amended, the proposed tr~wsaction rust be express y authori=ed by the Sec. rities and

"=.".change Commission.'

7

I 1

~.F e

~

~

~

e edward R. 3ock, Chairman o=

~Be 3oard and. President Hershey "=stat s

One Chocclaz

.Ivenue

Hershey, Pennsylvania 17 033

Dear TIr. 3ooR:

. ~

TWO HO tTII HIHTll STREET, ALL~HTOWH, I'A, I4I4l Qc-aber 7,'975 tIIOHKa <11SI

$ 2 I ~ HIS I Tn accordance

'~Tith yaur recuest, we, hereby mace a firm of=c=, wh'ch you may ac" e~z by del'very to us o" yaur acceotance in wrng by Octcoer ~,

1 i S, io a

q zrom Hersney

""sta:.es all ciT the ouzszan~"'ng capital stcc.

Hershey ='eczr c Comoany (H"-C), cansis-in'

714 shares cr" common szoc.'i, par value,

$ SO, =cr a bas prie o"

lus or minus aIl <<Lmounz ecT al to the chang in the eauity o=

2C from Dec aber i1, 1974 to zhe SzazemeKz Date (as ner 'n-afte~

d =ined) as d t rmined by applicz-'cz o

accounting 4

'lw

~

~

ol'cies and pracz ces o

F~C.n e==ec-

=c-. 19'~.

Pen.".sy-Yan'a Power e

L =hz Ccmoany

(>P~L) wi

~ ~

aLso a"rang ccin-dent With the Settl Rent Date (as he 8'na e

c ines 0

zhe repaymen" az par oz alT debt o=

H:-C o~~e 'c H

rsvp y

estates or financed cn Hershey cszatesl cree'.

We unders and and aper c.'at your des-re, assuming yau acc pt our offer, to complete

~Ie t ans=er o= F~C's szcc.c t

PPCI. as soon as practicable.

You have suggest d a Sett e-ment Daze for this transaction of December IS, 197S based cn a closing of MC's books on November 30, 197S.

Your sup-".esticns ia t'is

".edward are entirely satisfactory to PPcIL, pravid d

'~a

-he requisi" regulatory author za icns can be ccza ned by December 10, 3.975.

PPclI. wiIT, c= caurse, use izs best

. efforts to obz 'n the "'egulatcry author'=azions as "rcmoz y as possible.

I However in the event zhaz such regulator -'hor tions cannot be cctzined by Dec moer ',

1575, we be 'e

. is aoorooriat to establ'sh a means for determining w..en

~

e sett'ement Ti~ll ta'ie olace znc the =inancial. szazemen

= on

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T.'hich it wiII be based.

i'le understand

tnaz, except =cr.he

'e~'od ended Dec "e= ~1 o-eacn year,

=C s

oo'<s a

T Wt 4

Yery fourth Meek In zhe event th" I zne egula~c l

<<L i c ns a" no" cb ta-wed by December

~ 0, 7S, he s e be base I cn z'-e first closing o='2I".'s books "¹c.'. occ's a=ter the 1as c" alT rec 'size r platcry auzacri=ation shall be

". c ived oy PPIIT..his da" e.s de=inec as the I'EHH 5. L'(AHIA GOWK C T,

~ I CP i CO&l'AHT

"-dward H.. Bcoz,, C.".

rman o" the Board and President October 7,

1975

~ ~

~ ~

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4 a

Sa" ment Daze and the fin~".cia state ents as of the Sza.em n" Da will 'be used for adjusting zhe base pr ce.

~ pt.your opz"'on, ycu may chcose zo close H=C's bao'>,

is. based on

'u-r 1'anc on the accuracy o= the financ'al sza'zements p-pa.ed by H=C as o= the Statement Daz.. The amount o",.th's o==er also can-mplaz s that unused "ederal investment tar

" c ed ts not usaole

'oy

.". rshey =states in '

s ccnsol idaz a.".,

returns.~ill be available. to H:-C afz>> 'trans=er to PP4L of tNo ownorshig of the

%AC star(

~

Therefor'e)" in'ccordance w'iA our previous dis-

'. cussions, we would ewect He shey Eszat s to be responsib e

far the oayment of all 'pr-or periad expenses and 1'@bi'2.ities, includ ng tax assessmenzs relat'n to such pr'cr periods,

',unrecar" ed by HZC as of the Sta ement Daz Conv rse y, Hershey ""states would be enti led to rec ive from.F~C a

aaymert quivalent zo income o'r asset

't. =s, including z-

.." =unds unreco ded oy H:-C as of the State.enz Daze.

However,

~ no.adjuszmenz would be made zo elect-'ic reve..ues (cr the receivables there ram) recorded in the per od ended with tie Stazemenz Date.

The adjustments contemplated iz zhe prece 'ng paragraph will be based on sza" ments furn.shee by e'ther party fram time to time.

However, nc adjuszmenz w 1 be requ'red "ar any tern, other than taxes) which aecomes

.'c.own lucre than 6 mcnths a=z zne Stat men-l".aze.

Adjuszmenzs 0

requi"ed for zax re-u"..Cs ar zax assessmenzs)

.zc

~ c'.".g inca e

'ta-es,.;vill be made for zhe nez'ecz of any items which become 21aM? Unzi 60 days a-z r: nal Se z

e..'Iz w

z;1

'le Laze..lal Revenu Serv c

and t.'le P nnsylvan 3

D parzmenz 0=

Revenue a=. za". r zu s involv'ng."~C.

S

~

1

~ gr'.'edward R. Book, Chairman of the Board a d President 0 $>>

October 7, 3.975

't wi1 be necessa~

=or Hershey "-states to ta.'<

steps to p."ctect the accrued pens'on r gnts o= H"-C emp'oye s

continu'ng wit.z H:-C.

)'le suggest

-.""s ce dcne oy a trans=e" to the PP4L Pens on Plan Trust o= th peas'cn assets ap=l'-

cable to employees cont'nu'ng with:=" as of the dat "Ne P3C stoc!( 's s

o.'.d.

PPPL would chen assume a'1 futu Pension liabil'ties o= P~C employees.

Plan assets Co be trans "erred should be that propor-'on o='tota'lan assets tnat the actuarial liab'li"'

fcr accrued benef'ts "c. Cransf rre QC employe s oears to such liab)lit' for all Participants in the Plan, su'opec" to approval c" the P ns cn Benefit

.Guaran y Ccrporat-cn (PBGC).

)')e wou1d emect Hersh y "-states to ef=ec= ap"ropriate amendments

"'o the Hershey Plan and o

file.with tiNe PSGC as nec ssary to ma!<e the trans"er valid.

PP4L wou3.d be.responsible fo apprcpriate amendments o" its Wan..

'Ãe have based this of=er on 'Ze informat'on 'you

..have urnished us and, would und rstand that, if you acc Pt this o

= r, you wi11, by sucN acceptance, be repr senti..g tc us that >>.

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1; Subsequent to December

~1, 1974 prior to the Settlement Date:

{a) there h"s been and. wi11 be no change in the business o= HiC, or in the financial

condition or prooer ies thereof, and H

-C has not incurred any ob3.igaticn cr liability,

'ade any disburse ents or.entered into any transactions other than obligations, liabilit'es, disbursements and t: vasactions occurr>>rg in the crd'nary course oz bus'ness, none o" wh'ch has been or will be materially adverse;

~ (b) hcC has not engag d 'n or been.-

threatened with ary l't'gat'cn or any gcv~~mental prcce dings not fully covered

~

by insu anc, wh'ch would give rise to any

'material claim a ainst i-or any, o= its proper-s; I

(c) ne'ther.you ncr F=C sha11 have

~ "g anted any Person) firm or cor-cration

{oker than PP5L) any opt'on, wa=r"nt o

right to Purchase or to subscr ce zcr any sec"r'ty o=..ZC;

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has r

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ma ze ble la c a'z

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~ '. en, asse -s )

uo.'c:

cc no c

nv <<>>n>>

rv Ch

>>>>SE a) l<Lo>> 'ag

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3

c. wn>>

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PQCI )

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'ment, exceat 1iens

-"or tax s, the Payment of which

's not yet delinquent and miro" ns o= a charac-ter which, in the aggregate, are not subst~"tial i"

amount, co no-ma: axial'y detract from t~

value o" such assets or mat rially iwrair the operations o=

the business now cond cted by c-=C and 'which have not ar sen othez-~ se than in the ordina~ course ox MC's business; 3.

h:-C 's not a party to or bound by a..y mater a'ontract, 1

n or agr nt, e.-.c at con-tracts liens and a~r ments pr viously =u=n'shed to PP<L, and custcma-.f ?urchase orders; none o=

such contracts, 1'ens

o. agr ments mat

-. ally ad'r'ersely a== cts th business,'perations, oron-erty or adc't'on, financially or othe-.,~ise c=

. =C, and F2C 's not ia default in the payment o= any o=

its. obligat ons o-in the perfoaa ce o= any covenan=

or obli'"

on to be perfomec by i: Pursuant to a y such contracts, 1 ases or agreements, and each o=

the con.rac=s

=or t.".e Purchase o= Po~~er by HiC o-for the r..c't'on o"" services to

.-.=C having a

duration o= d'or than one yea= 's terminable 'within one yea-without penalty to 2"-C or, subsecuent to Set erne Da e>

Q PP(T

~

4.

You are, and iaaecia e'y a= o-the Settle--

ment.Date

?P5L wiLL be, the t~ie and La:v=uL o:ver o=

the shares o='F~C's stock,

=-.

and c'ea= of all 1'ens and encumbrances, charges, clai~ or restrictions vhatsoeve

'I S.

Hach o= th.. Shar s

o=" 'r.<<C's stock is duly

'uthor

=ed, va'dly issued w".c.outstanding,

=u Ly pa"d and nonassessable;

~C is duly organ'=ed md in good sta.-.cine

'-."er the

~eaLQ o= ?ennsy" ~'a; and va' ~'y e."..s-.wg

'aws o= the Com=on-7.

7hc 7

4 sha=es o= '."=C's chased bv>>"

cs---z-a' o-s oc h A be'".g pur-ou st3 c~c~g Qe I<<I a

sva sa, s

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ard R.

3oo!c, Chairman of the 3aard and P+esident October 7,

1975 To assist you in evaluating this o =er, we have outlined be'ow hcw.. 6L would gene"a'y propose tc banal f

same o= the z.ajar aspec s

0 11 g at? lg C in a QL>

our o== r 's accepted.

PP4L would plan ta continue P:>>C as a separate corporation "or ~ little mare than two years and to coerat

. the bus'..ess suostantially as a-presen" w'th t.".e same emolcy s

ana, under misting rate tari "fs.

A principal abject've w ll be to acnLeve m~n'iMX dJsturbance employees'nd cus-arne s.

~

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E 3.

Facilitates the ma'ntenance o= ~C's

,current r"te tar~z=s.

~

The decis.on to temporal" ~y 'continue.'th present co po at fora and operatians.pos-

=

has'e n basec on the followxng advan"ag s:

l.

Avoids i'ncome tw. Pe"alt'es.

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..Z.

Fits'n with the tNa-year pe iad quired to construe fac'lities to provide a rel'abl pc.ver supp'y directly from the PP(L system.

4.

S.

Provides time =o= the orderly planning and inte. rat'an o= ~=C ope at'ns and proc dures 'nto the PP4L system.

Provides time to work out d'fferenc s

bet veen 8:"C's and PPCL's wage levels,

'mployee bene='ts, union contractual provisions and other employee relat d

matters.

PP (L would assume responsibility for a' c= -the E~C full'-time employees wn: ch <ershev

<states has 'cica ed it =e ls aporopr=ate to transfer.

T." 's particular y impartan=

t.'".at Donald 3.

C:".uob, General i~ianager, and h's

¹y ma a~4-s r ma'n v'~."~C 'n arde= ta achieve th pre-v ously stated oo-'ectives a= PPCL.

Ne have be n imp= ssed Xy the c pab 'y c= ~fr.

Ch ab and be i ve he w'rove

~

o be v "y valua~b3.o 'z I==C's or"e.ly transition ta PP4

'ystem.

'e also appears to have gcod potentia~

ta ass'e korea-er

. s=ansib'ity in t.'".e lardier P~'

system aft "

int ~ration has be n comple ec.

ii'e are nat

am'Q Qbil ty and ootent' o= ot.':er managers ai ~ (a emu'yees, but they also w' l be g.'ven eve g opocrtun'y to assume groa

esocns bil ty unde=

PP<L.

0

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pdwa d

Q ~ /ca k ChaL'iilan or

~ the Board az:d President

~ <>

October 7,

1975 Review c= wage aG8 salary levels Ln&ca.es ha ve s are gere".ally a 1't h'gher<< than those o"

gC, even

~hen aajusted

=or cont=icuticrs

". cu' a

plo ees to oP4L's pension p'an.

Her~ever, PP4L is p

1~>isa"'~=

-Aese e~~laye "s oension can"-.=-

b v

t'.e nert Zew years.

-Li'apewise, the employe

'a'>ea oy PP5L employees appea to

~e more

"" "=" when ta.'c n as a who].e.

ine aen a

ca han -nose c".=

lan o"

.'-'"-C seems to be the only'igni-"icant oene=it ei has no" been adopted by PP<L.

~ '

The rac-that both the salary levels ana employee le led

" ~o'L "-

-ore oeneraus than t'arose a..=~

she "bene res or.

<L <<

t1 r~~uctance a= emaloyees ta trans"er rram

~he He shey environment to PP4L, particularly sine,

=o.

1

-'1ere would be no relccation.

o mployees.

On the ctner ha.".a,

'ra t1~ d'="er nce in salary and bene-ls does not a-pear g-.eat enough to have a.".y s'gni= can ac" on '.-.'ershey's laoc= relat'ors..>>ur.'.e.

" the trans'tian

=ram H:-C sa'ary are be.. =it ed ever polxc's o those az Po4L can be

~radua y accamp

'sh a twa ar more yea perioc'..

~

levels o= elect=ic rates or HZC customers ru ure e

ou sale v~rz important canseauence ta consiaer 'n your sa e

1 Oo Tl@5 T

cf t e

~

uu

~

h H"-C car-cn stock.

ITt is our understanaing a...

y P bl'tilityCommission (PPVC) po

~ cy aha HE rates cou d be continued in er= ct by P. <

a

'as a separate ron-interconnect a company,

~ proved ng the perz.

di g "'eriad is s reasonable ane as we ccn" emp ana P. 4L wou o

a. 'i PP4L>>

~ z'"o con"inu such rates.

howcv ", once.

HZC system is Physically intercor1ected tc tne.. 4L

>>UC

~auld orobab'y '".sist th"t..4L system rates be applicabl ta HZC customers and

.we wou a p switch to oP4L system rates at tha" time.

0 r

PPCL 'gen 'rally has aoou- 'the cw s rat s

Pennsylvania

=or all classes c= se r'ce ana is aea'c t t

'a"a'a~ th's

". 'xt've pas'-ion.

'de have made a

P

-L and compar'scn c= t-e res~ective rate 'e rels or;.r~,

~ht 2d and -'

relationship o" the rat

'ev s

o three camp"n'es

-"e shoim. in:-xhibit 1.

Th'5 e.~.ib'"-~-

r"t s currently

~ n er=ect ana us ng 1nd2eca e>>

y

++4+ s al <<4 o <

September 1975 =uel adjustment c'"use charges, tna-rates ar abcu-17.8" 'ower and that Met =d s rates ar about 3

7 ", lower t.".an H:"C ates.

~ r

~

~

~

Nr. edward R.

Book, Chairman o<

"he Board and President Oc:ober 7,

L97S

~ ((

~

~

However both PP4L and Met Pd have pena ng ra"e mr

- ase r=q es-s u.".d r suspens on oy t"

?P4C.;ne sus-t ~fa.ci

'r0 l;976 and '= the

=~r "dd t=ona

'ncr ase o=

15.Z-; is allowed, PPCL's rates wou'd St '1 be aoout 8.

1 wer -ha1

"'ze ca"rent

.'"~C rates.

On th other hand, ac ord'ng to info...ation availabl to us, i= tne..

a3.lo~)'s the full incr4zse reauested by )))et ~d (statutory" sus er's'o pe iod e~ " d in une 1975), )tet id ra:es wou'd ea to b 4 ao out Z 5 ~ 7 g h gher.

han tn4 curr. t g.

)

ra)

M ~

Zn add'tion',

PP4L is ve~

co sc'ous of tne e"tr me y l4v o" serv" ce reliabili g.needs o" 2:-C's c'tomers

~ 44 genera'ly, as we11 as the par ic 'lar needs o= many o=

he...

8e currently have very ampL ger. ration reserv s -nd

.".gee to maintain th's strong generation postur witr the add't'on o

rour a""~e generating un'ts now under const=~ction.

These ops's" of 850 mw oil un's schedu'ed to be placed in serv ce later th's month and in 1977 and 10~0 mw nvc ear unii schedu'ed "or 1980 and 198Z, r

Cur respect've service territories abut and our terccnnection const uction and operating plans caLL for

<'-hin~ api maintaining a LeveL o

servi.c reli"b'1'ty estao

.s

. t "at, least as high as the fine service HZC s customers p

~ y res entl en'y.

e N will be pleased to have our tec~sical personnel

. review our specific plans with you.

Thais you for the opportunity to suom t th.s pro.-

posal on a competitive bas's.

Ne would 'oe pleased to meet 1th you any toe at your conveni nce to d'scuss furthe

)s J,trh g ou KiLI deta" s o= ~~is oz=er, Very -ruly yours,'WitSYL~fANLA PG'F23.

, ~ By:

LIGi:.T CC)"~~A.'K At"achmen-lee rQs 1cen t )

"1nanc1aJ.

e

~

~

~

~

~

~ e

~

~

~

2

• .~.. 'X55ibit 1

~

~

~

~

~

~

e ~

~

~

~

o

~

~

0 oe

~

~

~

~I

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o t T.f btin noun t a7ount Eff. 9/24/75

$ 68141,)46 Q ;730',945,549

$5,120,983 1,798,967 270 300

. '15.467.

7 190 338 335 307

~8422 002 200 200 Sue.Up.

6/26/75 778,389

$36.9%

2,266,083 41 099 Q 5.462 123~728 819 188 2

389 811 I DD9 826

~ '0011 813 e

(1,552. 787) ',

{321 123 8

- (17.8%)

($.72

~

~

e i

t

~

a

~

~

~

~

~

IncludlBlg 1'ending'Rate Rcqueete h=.f3 4'nt Pi:LcIent

,~

~ ~

'e

~

{733,299)

(8. II%)

2,068.68'3.77

~'

8

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~

~

5

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~e de CONPARlSOM OF RATES

~

~ ~ ' 'BASED OH 1974 S/ILES OF 266 ~ 51386N'ill),

'I'l'K

't3oun t Beec recce Eff. 6/20/75

$ 6,536.077 Eff. 9/13/75 Rued 62d]ueta3cnt cfnuec (9/75) ','

Q.7534, 2,006,8II8 (L.675' Tax Surcharge Q3.0637.

95.28%

~

~

\\

~

~ ~ ~

e Total Rcvcnuee"-

8 743,125 I

~

~

Efface o

Pending Rate Raqueete Under PUC Su pension Sue.lip 3/20/76 8.2:ic rece$

~

~

915.27..

Tj>> "urcherBo

~

Q 5.285 "

~

~

~

Tural Revenue Rcqueeta Under SuapcneLon Torel ueueuuee lf Iloro ReDueero hllojrod '..

~ '

8 743~325 Rcvcnl:i:e Ovl:r (Under) llEC ',

~

~

~

Cur84:nt Rarae

~

~ e hl:ount Peccant I

~

~

I, I

I'

~l~

RvNfd Ro 30ok Octet; D, L973

&airman of the Hoard arA oresideng

'17 534 -3C99 ONE C'i"QCCLAt~ AV HUE.

~ HERS'r! Y, F+:JNSYl VAJA. i70 3 C

o~ <<4 Vice Q>>e<<$

4 PennsyLva~

Pc~e" 6 Xicht Ccmcany 2 itasca N'"."5 S~ ec ALLe"."~< PwmsyLvania MML Cea K

.o e

This a LL acWmLedqe ~ceiot o= ycu= ~m~e ca"ed Combe" 7:973, in which you ~ce

a. f= c=f =

a ac= 'e==~ He"shey =s- "es a'f ""e cu"-

swed'zg cx-i-a' ac!c of He sney

<<Lace ic Cowl a.

7 ~

The 3CQ d a Oi ~c a s cf Hech y -s tes ".a au"hc"i"ed

"..e, a acceoc yen= o=

e>><< 'a o".'ecicL sub-:ec" a

4 the c"ar"'~g and execu"'cn o

a. ant-~Ly s*"-'s~ac-a<<v 'cz~ A~ee" n-o4 Sal

~

between the oa~'es

~

The of "'ce=s of Hershey "-st:ates a.".d caunseL a-the C ~qv q-'>1

~ g

~

~

ava.~le tc ~eet

~i<<D ycu '~heneve>>

necessa=~ w a"de= ""at a fa~wL Aq e<<~-

o~ Sale may he pzs"a>>ed and At apaL'caticzs

=a "ecu='ad e~zza r auohc '-

boo cns cay he ~it 4d at the ea="es- ~ssML ca-es.

Me "'xQc yau ar you= cf"e= a:.d ~act a=aa"d ~:i~%".g vi"'" vcu.

Lx The So't Gf '76, cd% as%

Ccs X

V ~

ii 0 ~

'H ~ R B~ 5<<

Si A>>

C r

. o scient

<aye NaMe=

SC'4<<4rlp aqqs~er<<

eo<<cenu~l 4<<o h Ccigcia!icn ("vis<<nces Cue!i(y 5e."Iiccs (cr:.".e ~-mmunny pro is '/i"slu>>

-aiciramn:eni iien;cue r ) 'c. c r.;;:

ncs-i: l::.n:.es

Question 2:

Vie have already reviewed the Security and vmchange Commission records concerning the protest of the Metropolitan Edison Company (Pile No. '703839) to this acquisition.

Therefore, additional information concerning this intervention is not needed.

However, ve vould appreciate information describing any other ooposition to this acquisition.

Response

There vas no other opposition to th's acqu'sition

and, as the record should note, Metropoli~ Edison withdrew its protest.

Did HEC request any type of powez supply coordination or electric service from PP&L within the year pzececUig its acquisition by PP&L. If so, please descr.'be the nature of the request, including PP&L's response.

On My 28,

1974, HEC requested the billing charges based on an applicable 2P&L rate for the HEC system load or vhich the billing detezminants were provided for a 12-month period.

Polloving PP&I,'s response, additional format.'on was requested conce~g PP&L's ability to se~e HEC-and under what terms and conditions.

Engineering and rate studies veze undertaimx by 2P&L to determine feasi-bility of PP&L supply, estimated costs and. rates.

Puzzler discussions vere held with HEC after it was established that PP&L supply was feasible.

However, in April 1975, the nature of PP&L's studies vere modified towards the question of acquisition rather than wholesale supply vhen it vas advised by Hershey Estates of i s intent to sell its int est in HEC.

Question 4:

To the bes" of PPK's, haowledge, did SEC reques" any type of electric service from other bulk power suppliers withal the year preceding its acquisition by PPSLP If

.so, please describe (to the best of PPGL's hnowledge) the nature of the quest and the responses to these requests.

Response

KC had not requested any ~e of electric serac from othe bulk power suppliers within the yea preceding its acquisition by PPH..

Quest. on 5:

When is PPK planning to integrate the REC electric fac'lit'es vith the rest of PPK's electrical system~

We also would appreciate additional information concemiag PPGL's and AE's response to Item 1 (h) oz Regulatory Guide 9.3.

Response

The HEC electric facil'ties are planned to be integrated with the PPGL system on birch 1, 1980.

In the response to Item 1'(h) of Regulatozy Guide 9.3 submitted in August, 1978, zefe ence vas made to several on-going negotiations.

The responses to Questions 7 and 8 addzess the status of four of these negotiations.

The status of the remainder is as follovs:

a)

GPU request for 500 MW of Susquehanna output from 1981 to 1984 - negotiations aze continuing, b)

Request for 12 kV service to Sullivan County REC-negotiations aze continuing.

c)

Request for 66 hV service to Borough of Pezhsie-Tezms and conditions vere developed and presented to the Borough of Perkasie.

PP&L is waiting for a decision by the Borough.

estion 6:

'w'hat were the reasons cit d by the Borough of Lansdale and the Borough of Zutz own as to why they did not accept PBK's of er to provide them with elec "ical services'

Response

The Boroughs of Lansdale and (utztown never provided written rejection of PPGL's off " to provide electr.c service.

Prom telephone conversations, the costs asso-ciated with the changes and additions in service facili-ties necessary to acc ot lectric se~ce from PPH, and/or the wheel'ng charges of othe ut.'1't'es for trans-mission serv'ce combined to make the offe apoear uneco-nomic at that time.

Question 7:

Please describe the status of the negotiations between PPSL and: ',

(a) the Borough of Lansdale (foz wheeling)

Response

On January 9,

1979, PPGL provided to the Borougn of Lansdale an estimate of the charges for wheeling and requested that a mee~g be held to discuss the situat'on furler.

Zo. response fzom the Borough has been received as of January 30, 1979.

(b) the C'y of Vineland (for ownezship and/or purchase of capacity and energy from the above captioned units and/or other generating facilities).

(c) the Atlantic City Electric Company (for ownership and/or firm pu"chase of capaci y and energy from the above captioaed un'ts and/or other generating facil'ties).

Response

o The status of negotiations with the City of Vineland (Vineland) and the Atlantic City Electric Company (ACE) is unchanged-from that reported in August, 1978.

En the

interim, PPGL developed proposals of terms and conditions for the. various transactions being contemplated.

These pzoposals were presented to Vineland and ACE in January',

1979.

The primary interest, of each is in a firm purchase of capacitv and <<nergy from Susquehanna SZS rather than the pruchase of an ownezship interest.

Qllcstion 8:

Please advise us of the status oi the negotiations between AE and Ae Southern &~land Elect 'c Cooperative, Inc.,

concerning joint ownership in future generating facilities.

Response

The following response was provided by AE:

"Allegheny and SHECO held a meeting conce~g a possi-bility of S&CO participating jointly in generation plant projects with Allegheny. It was found that it was not economically feasible for StECO to pazticipate in Susquehanna or any other projects now being conside ed by Allegheny. If any &xtuze projects are found to be feasible for joint participation by Allegheny and RICO, Allegheny will cooperate with ~CO in developing a joint pazticipa-tion agreement."

Question 9:

Shen the negotiations, referred to in Questions 7 and 8,

'are completed, please furnish us with a description of the results.

Response

PPK vill fuzn'sh a description of the results of the negotiat-'ons desc.bed in the response to Question 7 when the negotiations are concluded.

AE's response to Quest'n 8 desczibes the completion oz thei" negotiations with S?KCO.

Ques ioa lQ:

a.

List the electric facilitics acquired ia l974 by PPGL from the Borough of Steeltoa aad the Towaships of Svataza, Lover Svatara aad Der~, Dauohia County, Pennsylvania.

b.

Describe chc circumstaaces under which these facili" ties vere aequi"ed.

c.

'was there aay organized opposition to these acquisi-

'ions? lf so, desczibe who was the oppositioa,and what veze the issues involved.

Response

No facilities were acquired in l974 by PPK from the 3orough of Steelton and the Townships of Svatara, Lover Swatara and Derry, Dauphin County, Pa.

However, facilities situated in the aforementioned 3orough and Townships were acquired fzom Metropolitan Edison Company in 1974 by PPGL for purposes of supplying 3ethlehem Steel Compaay aad re~ozcing supply to PPK's Vest Shore 220-6o sV Substat'oa.

This matter is more fu3.ly explained by the filings before the Pennsylvania Public Utility Commission and the.edezal Power Commission, copy attached.

2iG/cake

May 8, i97-'ir.

L. L. 'Nonemaker i>Ir. A. J. Baldwin~~

VL. B. ". Hi11 Mr. G.

=". Mc>air Mr. G. r. grande"-slic

.Attached, for your ~or-.a~on, is a ccoy oi an A,polication iQed on 'oehali oi P98:E on May 3, 19'T4, for:he acquisition of certain elect"ic ac lities rom.'iietrooo.'itan

=dison Company.

~. w/J>g+

Vincent 3v.tier 3ttachment P KH iV 5 'f LYAi'4 ( A P 0 W KR 8 t I G H 7 C Q hL P A iN Y

Two HQRTII HIH TH sTREET, ALLEHTow', 1'A.

58505 PIIoHE! 1214) 321 Jlsl

!QWARO 5!L NACEl Yic!h!cow, Ceno!!( Cyvaoeo ~ Ie!!e!m 551~

'VINCIT EUTlER CIIOICOWI%0440~~ A((aug Ckl SAP LECAL 0VARTAIENT 5!v!!est Creel PAURRAY 5(UNMAN III.5l&

S. JAN hUOOLE III.II!5 J!t~

QENN*KI0. CAUENOO Cl~

.'OHN E. EIQQAR I2IWI5 C, CCLUNS EROWN CB~

WILLIAMC. IOECER.;R, 555.~5

Yiay 3, 197='ede al Power Commission 825 3'o.h Capitol St

eet, N, ".

%'ashington, D. C.

20426 s(I=

cCenneth

. Plumb, Sec" etary Gentlement Enclosed for.'~~I g on behalf oi Pemxsylvania Power R Light Company are an origmal and five (5) copies of an Applica-t on for approval of the acquisition of certain elec'=ic faciElIt'es and appu t nant land rights by Pennsylvania Power 8c Li"ht Com-pany f om Yietropoli.an Edison Company.

The s pplication is filed pursuant to Sect on 203 oi the c'ederal Power Act and Sec>>

twn 33 oi the Regulations oi the r ederal Power Commission thereunder.

An addi.'oral copy of the s ppl'cat'on

.Is fu ished here-wi 52, pursuant to Sec+ on 33. 6 of the Regx at'ons, in view oi the iact that Ae approval oi the Public U:Duty Commission of the Commonweal> of Pennsylvania

.'s also

." ~ed.'or the transaction.

Very ~~y you=s, Enc'osu s

Vine nt Sutler PEH H STLVA41A ROWER 4

L I GH 1 COIAPAHY

3" ZQP~

TH" =:"D:-~ PQh:"3 COi~'~f SSiON Washington, D. C.

Zn the <wtte of "'.e Apol'cat'cn o" P "iiNSYLVAiiZAPO/J=R

& LZGFT CC~lP&lY Appl'cat'on Docket Nc.

."-or an O de unde Sect'on 203(a) of the "-ederal Pcwe" Ac" authcr'-'q the acquisition hy Pe. zsylvania Powe

& Light Comoany of certain e ec ic ac' si uate he Borouch o

Stee't'n and the Town-.

sh' of Swa" a,

Lower Swat=a and Der~,

Dauphin Coun"y, P nnsylvan a,,

togethe w'th 'a"d rights a= u== nant the eto.

TO T~~ HONGEVDLZ, ~~ ~DEBS PQN" 2 COMf SSZQNr

. Your Appl'cant, Pennsylvania Pcwe

& L'ght Company (PP&L), respectfully states thatr A.

The exact name of PP&L and the address of 'ts princ'pa'usiness off'c a

e as oows:

Pennsylvan a

Powe

& L cnt Company Two North Ninth Street Allentown, Pennsylvan'a

'810l B.

PP&L 's a public ut'l'ty of the C-mmonwealth of pennsylvania, duly formed '-y consolidation and =er".er, hav='ng rece'ved Lette s Patent from "".e Governor o

"'".e Commoi.wealth of Pennsylvania dated June 4, l920.

Qn =ehrua~ l3, '967, pu=suant to a resolut'cn o

'ts Boa " of Dir c ors made on Janua~

25, '967, PP&L elec d to acc pt the "rcv's'cr:s of

"'"e Pemsylva 'a 3usiness Cor erat'on Law, Act o= Hay 5, 1933, P.L.

364," as amended and supol en d, hy ce='='cate dulv filed w"". the Secretaire of

're Ccmmcnwea'z pursuan to "'".e recuiremen s of said l933 Ac, as amende" hv "'".

Ac-of Aug:s 27, l963/ P.L. l38'.

C.

The names and add= sses o

the 'ersor.s u"'".cri"ed cn hehal o= PP&L to = c ive nooices and co~un c t o..s

respect o" t;".is App icaticn Leon L. 'Acr.ema.'ter Vic P

s'dent, Divn Operat'ns Pennsy'ania Powe"

& Liqnt Campanv allentown, Pa. 1810'h'"

Counsel<<Reculatary A="airs Pennsylvan'a Powe L qht Campany-Two ivor h 2 at'T St et Allentown, Pa.

18103.

D.

The names, ti"les and addresses oz "'ce arinciaal o~~icers o-- PP&L a=e as =a'laws:

~ac% K. 3usby 3.

R.

2a Pres'cent Zzecutive Vice P esi<<

de t, Ope at'cns A3 1+&town I P a ~

entown, Pa.

R.

R. Por "ae Vice Pres'dent,

."-ina.cial Allentown, Pa.

G.

P.

Vande sl'c Comptral'e-A' entown, Pa.

C.

R. Callver Treasu=e=

Aentawn, Pa.

D. J.

Trego J

T ~ Zauz ~an Assistant Treasu" "

A3.lentawn, a4 Vice P= sident, System A'lentawn, Pa.

Power

& m~gineer'g Cu=txs V'e P esident, nee nq

& Cons ruct cn Allentown, Pa.

M malloy V'ce P esid at, =u~

~~ entomb, Pa.

Resou=ce and Deve'cpment R

Z.

E chtenwalne V'e P esident, Public Relat'ons A>> entawn, Pa.

F.

i4. Ha@el Vice P esident, Gene al Allentown, Pa.

Counsel and Secreta=g

"-a"sm'ss'on, dist="-uticn and sa' a=

lec ='c ene

~~

sexes a

10 000 scuare-m'le territory.which embraces 29 caunt' in c n"=al eas-

.. Per~"sylvar.'a, wnicn as a pcpu-latia.". o~ apprav'mately 2,309,000.:z add't'on ta prcv=d'".g elec ='c publ'c u-y sezic ta "'.e pal'c su'",'e

= ta ".e ju-isdiction o= "'".e P nnsylvan'a Philic Ut' 'ty Ccmmiss'an, PP&

" cv.des wno3.esale ar resale se r ce ta cne el c<<r c pub 1 '

u '

ty company

and,

<<4 30 ouch s u suant to at sc.".ed

s an 'e 'wi"'" "ae Ccmm'ssion.

2

I 0

s:

C PE

?P&~r aWrS 66 ZV, LLQ ZV, L32 KV, 230 ZV and 500 ~l "ransm'ss'on '". s wh'ch cannec=

g n rat'ng stations and maja

'oad c nters, anc wh'ch int rconrect 's sys" m

ec t v w th the svs ems of a"her eL c"r' ""' 'y sys" ms Loca d '

Pennsy'an'a, Vew Jersey and Na

~Land.

The Cam-panv operates 's generation a".d t w~ sm'ss'on. faciLities as pa" o" the P nnsyLvania-Vew Jersey-HaryLand

n 8 cannect'an (PJ!4).

PJA 's a

u'Ly w egrated

=awe "ooL and LlcLudes LL ccmpan'es serving more

-:'".an 2L m'Lon eap' in a

$ 0,000-scua"8-m'Le te itary.

G.

PP&Z has '

r.ses fram "".e =ede"aL Powe Cam-

. miss'on cover=".g 's ~iaL'npaupack

-ydraeLec"-ic Project

( '

".se Vc.

487) and cov r.ng 's

.-.o'woad-.=.ydraeLec--ic P OjeC

(~r'enSe Na. '8L).

Qn 08C~er 6, '972, the

=ede a

Power Comm ss'on.

Ssued a

P 8L~a v ?e~t ta PPU, and AetropoL'tan =d'san Ccmpanv "or t"8 St:cnv,C eek P ojec'ard. ass'grec ta Project Vumher 27L9.

B.

(L) (2) (3)

Yh authcrized cap'at s ac!c of the

. AppL'cant is divided 'zta eLeven c'asses, Common Stack o= na

~pa= vaLl 8( seven c'asses o"

o=o"= d Stack(

aLL o

$ LQQ pa= va'ue and cumuLatire, ard "'".ree c'asses o=

8 8 enc8

. Stackl a'L of no pa=

va3.ue and cumu'at've.

he more com-p" he s've d.esc='pt'on af AppLicant's cap'taL s ack

~ appLication or author'"at'an to 'ssue short-t m unsecu"ed p=cm'ssory notes at Docket Ho. Z-85LQ 's i.".car orated hee'n and made a part hereof.hy re=8 ence.

'L".8 cLLaw'ag cansitutes a s atement as o

'Decerwer 3L, L973, af each cLass and ser' of capitaL stack, no sha=es of wh'ch wer heLd in "'le treas-Preferred S(cck - $ 100 par, cutnulativc 4-I/2f~, au'..".orixed 629, 936 sha" s, outstanding 530, IS9 shares Scr.'es, authori=ed 2. 000, 000 shares 3.

5~a, outstanding 41,783 sha:es

4. 40~, outstanding 228, T73 shat es

4. 60~~, outstanding 63,000 shares T. 40~, outst=nding 400. 000 shares S. 60;o. outstanding 22, 370 shares 9'f~, out tand!ng TT,630 she s

P."efcrence Stock - no pa, cun:uiative, author!"ed 5, 000, 000 shares

$8. 00 series, outstanding 350, 000 shares

$ 8. 40 series, outs(anding 400, 000 shares

$8. 70 series, outstand.'ng 400,000 shares Total?"e(orred and P".eference Stock

$53, 018, 900 4.

22 a,

40, 22 7.

IT8, 300 877, 300 300, 000 000, 000 237, 000 763, 000 35, 000, 000 40, 000, 000

40. 000, 000

$ 271, 374, 500 Cotntncn Stock - uo par. au!horiaed 0, 000, 000 shares, outstanding 21, 05 I, 255 shares

$ 319 38~

~36 (4) (S) (o) (7)

No sha s o" cap'l s

as reac=k'ed se 'or='"'es,

=ledged, owned hv affiJ.ia+ d cor-

=ora"ions or he'd in any =-".d.

(')(2) (3)

Appiican"'s

~L'ed dehi cons's"s of

's" Mor"=ace Bonds and '.iotas as seL for"'

here'naf"er, as of Dec mher 3',

l.973.

The more ccmpre.'".ensive descr'""ion o" App3.ican 's funded deht in "he Apph'ca-ion or al t'".o i=a~ion to 'sst:e sllort-"'

tlnsec.

ed p cm'ssory nc"'

a" Qcc.'ce" Ao. =-85'0 's inco~cra-ed here'n and made a pa=~ hereo" hy WO O<<Onc LONG-TEHLL Di:ST n cont<<ol series A duc Total. '-~ Mortgage Bonds First Mort,ag

~onds 3~o series due 1975 2-7/8",o series due 1976 23/4 o'sexes due 1977 3-1/85 series due 1978 2-3/4,~ series due L980 3-3/85 scr.'es due 1982 3-1/Z~e series ""e 1483 3-3/85 series due 19S5 4-5/S~ series"

e. L991 4-5/85 series duc 1994 5-5/3~o series due 1995 6-3/4'~ series due 1997 7~o ser es due 1990 S-L/8",~ ser s duc 1999 9 'cr es duc 2000 7-L/45 se. ies due 2001

'7-5/85 ser cs due 2002 7-1/Z~o scr.es due 2003 4-L/25 to 5-5/84~ poLutio 1977-2003 93, 000, 000 8, oao,oao 20, 000, 000 3, 000, 000 3'7. 000, 000

'7, 500, OGO 25, 000, 000 25, 000. 000 30, 000, 000 30, 000, OQQ 30, 000, 000 30, 000, 000 40, 000, 000 40, 000, 000 50, 000, 000 60, 000, 000 75, 000, 000 so, ooo, ooo

28. 000, 000 711, 500, 000 Notes 6'-L/4~a - S-L/45 due 1974 - to be r Qnanced 6-1/Z~o - 7~o We 1976 - LSSO Othe Total Long-Te~ Debt 18, 550, 000 ZZ, 800, 000 177, 025 753, QZ7, 025 No amoun c

"'le orego='ag was

'.".e3.d ~

='Le

-east r.

(4) (5) (5) (7)

Mo amer".t oz "ae as acct'r d sec -'"'es, p edged, owned

=ora-'cr.s cr '.". sc'"q o

oMer "ands.

o co c "1as Lot 4 cor Z and Z.

T.'lis is an p~ 'c

'on for the a=@

ova'v

&e Cctma'SSion C=

Le aCmiS'"'Cn hv PPS~r O=

C a'

+o w7 1 '

c

<<a o

o ~

xv <<a asm ss on

~ e c

s

~

+he

<<c es

8 0

a=

ta he accui"ed

==am ~ieiroaolitan "-d'sor. Company (4fet =d),

an e'c r'c pub 'c u=il'tv carpo at'an organized and evis-ing unce

-".e laws a= "'".e Cc..,onwealth o= Pennsy'vania.

~et

=d is also a suhs d'ry o General Pwl' Ut' ' 's Corporation, a zeg'stered holding ccmpanv under the Puhl'- Utty Holding Ccmpany Act oz l935.

The acquisition oz the a=orement'oned ac'lities

's in connect an with the

-- aposed tra.s=e as an e

c-r c c stamer, of the St e'"an ?l st (?'ant) oz 3ethlehem Steel Cor=orat'on (3 thlehem),

wh'ch 's 'ac ted in the 3orough o=

St e'tan, Dauphin Cauni ~, ?ennsylvan'a, f=cm Met:-d ta Met =" cm= ntly provides se sic ta Plan" hy means o-"'".e said 230 ZV transmission lin wh'ch " ps Net "-d's.".'dd'e-town Ju"ction-.:ummels=own 230 rÃ1 line in ?PAL's.:~elstawn Suhsta

'or. ard suppl'es a Net "-d sos at'on 'acat d on Bethlehem's land..ea-t' Plart.

Met =d also employs the said 69 KV transm'ssian l'e aci't'es as hack-up for such servic Net

=-d and

?PGL have ag eed ta the "=arsfe o=

P'ant ta

?PAL service upon te~s and cond t'ons set for"'a,.

several agreemen=s

=etween Net "-d and PP~L,

?PAL and 3e"'".le-hem and Net "-d and Bethlehem.

All ag=eements a

e cand't'anal u on rec 'pt o nec ssa~

approvals oz reculatary authorit'es hav'"g jur'sd'ction over va"'ous aspec"s oz the procosed t=ansac ons.

Zn summa~,

?PAL has agre d ta prcv'de serv ce to P'ant hy purchasing the existing sa'd 230 ZV ransmission line f=om Met =-d, hv c ns~~cting a secand 230 ZV supply line ram 'ts Wes Sha e Substation and hy canstructing a

230 ZV switching stat'an wh'ch wl he suppl'ed hy ho 5

lines, adjacent ta the present i<et "-d su'astation.

3ethlehem accuire sa'd sos a 'an f-am ~tet

=-d in o der ta rece've supplv fram ?PAL.

Pending ccnstruction o

"'".e second 230 ZV e and the 230 ZV switching stat'on hv ?PAL, '

proposes to lease the a orement'oned'9 ZV line fac'ls

=rem

><et "-d a de ta su=alv ?'ant.

Upon ccmpletian o= the new 230 ZV.line and 230 ZV swit"hing station, rL wl have no need

="

the 69 ZV lines advised ~t, pu=suar." ta ag eements between Aet

=-d ard 3e&leh~m, 3e"'Rehem was ta remeurse

.'.e

=d ar 'ts invest-men

and, assume

""e expense o= disman"l'"g

~.d "emcva'=

that portion o= "'-e sa'd 69 ZV lines no longer use ul ta Met "-d nar recuired

'-v ?PAL for the service.

PP~L has ag=eed ta acceat a canveyanc o= a ce ain pa~ion o= said 69 ZV lines f=om Neo "-d a no cas at the e:c-ir t'cn a=

"'".e le se.

hea-the evpense o-their dis~".tl'".g ard rival.

?PGL

hei'v s tha

~.re >'e 4 <<

W ar<<o a such p9 iV 1'nes, wh'ch a

e mainly located service "e r'"a>> (,

may very pass"'y

'"e useful

'n mee 'g demancs "ar se ce in

".at cene=

he cans'cera-'on mav..g rcm PP&L ta."et

=-d fo the said 230

~4 line facili"i s 's based upon or'gast

'ss depr c at. on a" "".e " -e o" the transf =.

PP&L under-stands that Met

"-d. will he reiz'"ursed hv 3ezhlehem for 'ts

'aves"-. ent in the sa'd 69 KV fact'es pu=suant ta ac cement

'"et..ve n "'".ase pa='i s.

=w~('t K to this App'cat'on 's a capy a

an Appl'cat'on of Net "-d and PP&L to "'".e Pe. asylvzx'a Puhli"

~

4 k T+

J'<<J Ut 'tv Ccmm ss=

.". 'n c'nnec='cn w "". "'"ese mat" rs;. =:c.'-

hit A "a sa'd Apa 'ca"'on 's a capy of "ae Agroeme..t '"etween

~PP&Z and Net =d, da'd Aarch 11,

1974, he Acre ment con-tains a d.escrpt'on a= the sa'd.

230 CI 'ine fac '"'es and sets out the o='ginal cas-and applicable dep eciation

"'".ereon at Dece.-."er 31(

1973, a" Schedule A -".er of.

The Agr e ent a'so c scr""es

"".e sa'd 69 Z'1 =ac"'

ard sets ou at Sched"le 3 ='".ereof the rental ccaput "'or. app'cicle du=ing the " ~ of "':e lease of such fac es ry

-~(e~ =d ta PP &L The "-arsact'on involves the 230 ZV and 69 KV ac'-

1'ties as set out m "'e ahove>>ment'oned Agreement and does not '"elude all "e opera ing fac'lities o= either

?P&L or Hei =-d.

L.

'The orig'aal cast and deprec'at'on applicable ta the said 230 KV 1'"e rc'es a=e shown as of January 1,

1974(

an Schedule A o" Zxhihit A, wh'ch 's

"'".e Agree. en=

between PP&L and

>fe= =d contained in "-zhihi" K hereof.

h's in=armation has

'=een proviced to PP&L hy Net "-d.

The 59 KV line facilities as to wh'ch PP&L u'~(

tely proposes to ac"ept hy way of conveyance fram Met Zd a"e re"er>>ed ta at pa-ag aph 3(f) of the said. Agreement.

Net

=-d has advised

&L that the a-g'.a'ost o

such ac s at Janua 1974, 's

$ 140,SS3.47, ard o 'ginal cast Less deprec'at'or.

's

$ 07,029.74.

I

's passel that zo e or 1 ss of the 69 xv line facilities than spec' ed said Agreement may u'i<<

PP&L expec s that at tha= ~(ae i~tet "-d w ll =~. -sh an

. ~ven-tary and. u-dated cas data and PP&L w l'ard any such ac~(sition in 'ts

'"coRs o" accou.".

in accar"ance with ='".e Cawssian's Un'=orm Sys" m o Accaunts ard appcal eca ds w.

es ec ta

. e

-o eco'-g facil-ies a

2 se lv e cusrcdy of Ne do A.

he ar'aa r ef ect of p'ac PP&L in a "as'='an ta '"e p

the "- csacticn wil'o<<go>>

<<a e~~~~ ~o U

oxide

<<>> <<se r

I I

~

~

~

I

<<4 l

Pl ant o Bet tlehem 1 ccatod ~

3 teel t n,'4fet d wi 1l thereupcn cease ta provide serv c to Pl ".t..".e transfer of a reta

pa"ran under

"".e circums-anc s o=

"'".e proposed transac

'an 's spec'='c lly su'"-.'ec to a praval by Pennsylva P"

U '

y Ca Liss '

urde Sec an 202 (e) of the Pennsylvania Publ'c Ut' '"y

~ aw.

Z is expected

"'".at the "-ansaction will also rosult in a new '

erccnnect'an point between PP&L and Aet "-d.

Chief Counsel-jaculatory A== '"s Pennsylvania Pawe" G Liuent Company Two No a Ninth Street Allentown, Pennsy van' l8l0'.

An appl'cat'on wite res=ec ta the "-ansfer o" acil't'es, as ~ the proposed tra"sac=ion and involv'ac the Commission and i=s approval 's "

'"ed.

A ioint A=p 'cat'on

+ub '

Ut l tv Comm's a'1 A catv of ~

Kaa <<<<t'.i d he ewiM as "=wsibit Z.

A c"py o "ae Cert===cat of Per".sylvania Pub'c Ut'l'y Cc~ssian will be fi'ed w'h the Com'ssion a=ter the same 's received by PPRL.

P.

Bethlehem pr sently rece'ves servic at ts serve the Plant, upon c = ain conditions.

P.'rst, that Bethlehem would cove the cast o= add't'anal l~e and appur-tenant ac'l't'es rec"ired by PPGL ta bee'a such se zice, either bv contribution o

othe a

anqement accepta'"le ta PPRL.

Second,

"".at PPGL wou'd negotiate ac cisitian and lease of ce t~'

fac' it'es fram Met =d in order ta provide the service.

h'rd, that rem'd " cu'atory approvals fo

" ansfer of fac'es and for "=ansfor o-patran be ac=u'red.

The ar=angement as worked out 's ~ t"e publ'c inte est because 3ethlehem w~'

rece've se z ce ram "'".e

~e '" ccn emplates w'll resul" in a more ecaramical opea-inveswent in facilities c = nt'y devoted ta the Plan 's se~ c

, e'"'"e by pu-chase by PPSL or by paymen fram 3e" alehem.

P~QL submits that he arrm~.gement w' 'e~t ta serve lant w"".au any un easanab'e cas" b"-den heine imposed on '

aDe cus "mers.

Q.

Appl'an,

PPSL, has all nec ssa>>y ranchises ta ca=~ ou pub'c util'ty func"'ons and bvsizess upon ac~si

'on of the proposed fac"'es.

The C "='='cate cf

Publ'c Conven'erce,

'ssued bv the Perasylvania P~)c Ut'L' Commission in consider iion o= "'ae Appl'cat'an found at '-x.'".ibi" K he eto, w l a'sa p ovide specific c =

-"'ation

=o e serv co bv ao5~ -

. e slant o

R. Appl'an PPG

, su'"mits that the ol'ow'ng form o notice 's su'tabl

=or publ't'n "a the

= deral Reg'te

?ennsylvan'a

?owe a Light Company Docket No.

May 3, L974 Not' o

P apased Ac=un o

=Lee=-ic Transmiss'an

=ac'L'"'

a'ce Notice that Pennsylvania Power

~ cnt Companv (PP5

)

on

<ay 3, L974, " nder d =or =ng an Appl'cat'an far ~a Qrde under Sect'on 203(a) a=

"'".e

= ederal

?ower Act, author z~".g

".e accuon o

certain e'c r'c ansm'ss'an fac'Ls fram Metropolitan =d'son Ca~any (Met BX).

The acn'isition 's in c nnect'on w'"c the ""ansfer of retail electr'c supplv to t'e Steeltcn P'ant a=

Be"'".3. hem Steel Corpora"'on

" om quiet =d to PPG~)'.

The fac ' t'es which a"e proposed to be trans erred a"e Located in the Boraugh o=

Stee'"an, and the Townshi-s of Swatara, Lower Swata a and De~,

Dauphin Coun y, ?e. "sylvania.

Any person des'ring ta be heard or to ma!ce any protes with re erence to said appl'cat'on

should, on or beor'i~e widow the "-ederal Pawer Cam-m'ss'an, 829 Norm Capi ol Street, H.-., Washing n,

D. C.

20426 I pet'icns ar protes s in accordance w='th the recuire-menv o= the Ccmm'ssian's Rules of Prac 'ce and P ocedure (L8 C=R L.8 or L.LQ).

All pratests fi'ed with the Co@mis-s'on w' be consider d by it in d " rmin~g "'".e appropriate ac 'on to be " men bu will not sewe to w~e ""e o-ates

~ts paries to "'".e proceeding.

Persons w'sh "g ta "ecam pa"='es ta a proceeding.

a

'a pa

'c'pa e as a pa v ~ anv hea='".c were'a must

e pe 't'ons to 'enne in accarda ce w

the Ca~ssicn's Rules.

The appl'ca

'an 's cr. e wi"

'.e Cession and ava'Lable or pu'"Lic 'nspec

'or..

NE"RZ:QR=-, Appl'cant,

?Pate, "espec fu'Ly " n es the "=ederal Power Calm'-s'on "a enter i"s Order au-"aris'ng

"~a po-ose6 ac"uisit'ca oZ e'"='c out ha a.".a'"ove.

""ac ' "'as as sat P MSY VAiM:4 PQb:"R Z

GH CQi4L~AiHY 3'

ATT ST:

, rr'ic.<CC 3.

R.

mac tive

- V' P" siceat Opera ons lgl >>~

A,o 8 i,i%i s t&1t a e c>> o t~~~p 9

l 0

t

COP~~'QNil:"ALT~ Q~ ~-~iifS ~" VZi:A CQEPITY 0" L-':ZGH

)

~

SS

)

3, R. ~~~KM, he'ng du'y swo"n cco"d'ng to law, de'oses ard says

"'".at he 's

"-x c v V'ce P= s'dent, Qoe~at4 ons o c oartwsv I van 0 a Dowe~

5, T i c~ 0 Cwvggar v ~

+ ~ 5 lhcl is auto-"'wed to a".d does maRe "a's a"='v~ t fo~ 't; and that the fac"s se fo=m above a"

"-ae a".d co -ec to "'".e hest o= h's

.'c.".ow'edge,

'afomat'on and '"el'ef.

Swo~ to and suhsc="ed

- hefo"e me "c's 3~d day of Hay, '74.

.n'Y7i.i'~c.'c

~ os Bxy uDJ.~c A13.er.tosa, Lehigh County, Pa Hy Ccaun'ss'on

=zp'" s:

Ma=eh 1S,

'976 1 0

The a a-a fil d wi-a "'.'s Appl'cat'or.,

and *s a pa he o=,

the =xhi'"its 1's=ad

'"e'ow.

Refer nces 'n the i'hand cole.z ind'c t

=xhizits previous y -'lad with the:ede al Pave Commission wh'ch are incor=orat d herein oy raferanc

>a m o+

2~

1 i~c 44K A~3 Copy of Restated A~'clas of Lacorpo at'on of A"pl'ant Amendmen s to A

'c'es of issua".ca o" Pz fa ence Stock,

$8.40 Se es and P aferar.c

Stock,

$8. 70 Sez es issuanc of P aferanc

Stock,

$ 8.00 Series Amendments to Ar 'cles of Lscorpora ion a 3.ecting an inc ease of av. ".oz'zed Common Stock of Applic at to 30 mill'on sha"es; an wcrease o

author-ized P efe ance Stock, to 5 million sha" s; t:.e ssvanca of 7.40% Sez'es Prafa rad Stock; and a ciaxge of A"pl'-

cant '

regis tered of 'a Amendmant to A~icl s of Zncoorat'..

a "1 c '.g an increase of anthoziz d

Se '

Preferred Stock of Applicant to 5 m'2.lion sha as Copv o 3v-laws of Appca"t, as arne ded. to data Docket Ao.

--7581 Docket 8o.

=-7581 Dock t No.

m~7Q 8 1 Docket Ho.

>> -8510 Docket 3o.

=-7581 Copv of 'Resol " cns o" ae 3oa=d of D'ac=ors of A"=~ 'n" adopted Ma ch 22, 1967, a thc Appl'cant to exec'ny a"d all nec ssary or a"p opriata connec='on with "'".e basin ss o"

vbi'~i <

Zh<<<<

I

<<tern t)<<w ew

<<4 1

4 qe

<<<<<<W<<<<

D-2 Capv of !oz-=ace anc Oe c of Trust of A"p:'c nt, dated as of Octaoer 1,

1945, ta Guaranty Tzus Camaany of New York (now. Ao can Guaranty Trus Companv of New Yore),

as Tzus-e, and cop'es of

"-'zst, Secanc arc Th'rd upplemenQ 1

-.nden s

thez "c, dated as o" Ju'v 1,

1947, Decemaer L, '948 arc 2'ehzua~ ', 1950, respect've'y Cap' o>> =ou"='5 Supplemental ident -, da"ed as of March 1,

1953, and Supplement~~

Zrden-

tuze, da" d.as of Ju'y 1, '954, to App'ca.".t's Nar =.age a".d Deed of Tzus"-

Docke" Na.

Na.

6483 Docket No.

=-6594

'D-3 Seventh Supp me..ta '.den-tures ta App' cant's Na qaqe anc Deed of Trust, dated as of August 1,

1955, Decemhe 1,

1961 and Ha=eh 1, L964, es ec-tively Cop'es of ='q.". h, N'a"a and Tenth Suaal~me-ias

~-.dentures to Appl cant' Nazi>age and Deed o

Trust, da ed as af June 1, 1966, November L, 1967 anted Dece '"er 1, 1967, res=ec 'elv Docket No.

No.

7214 Docket No.

No.

7411 D<<7 Copies of =Leven

'z and Twelve and Th'zteer."5 Supplemental Qxdenim'ls ta Appl'ant' Naz >age and Deed af T= st, dated as o" Janua

.~ 1, 1968, and June L, L969 ard March ',

1970, respect'vely Copv o>>.=au~

n-'a Supple. ental gage and Deed af rust, date as af =eaz azy ', '971 Copv of ='=teenth Supplemental

~<<~

g

~ ~)

4

~<<<<

I

'.den <<'<<

~Q r-c~i<<s

..a qaqe a.".d Deed o" z"s", dated as o= =ex ua" ~ ',

1972

~ acket Vo.

=-75 81 wacke No.

Z<< I 38 ocket No.

758 '

I g

=-vhiait

. >a~m D>>4w>> <<i 0

4 << c D-8 Copv o" S't enth and Seven-te nth Supp:emen"a'dentur s

ta Appl'cant's Hart=ac and Deed, of Trust, dated as cf Janua"y ',

1973 and Hay ',

1973, respect'vely Deck t No.

"=<<aslo D-9 D-10 D-12 Capv of Mort"age and De d of Truest o" Tne Sc= stan "-'tr "

Company (to wh ch A"pl'cant 's suc essar ay merge ), dat, d as of "=e'-rua=J 5,

1937, to Cher" ca'ar.k S T=ust Corn=any (Now Chen'cal Corn "-zcha.qe 3ank) and Howa-d 3.

Sm'Russel3.

H. Sherman, succ ssc T-s ee),

as Triste s, and cap'es of "='rs" and Secand da" d as o= Ncvemhe 1, '946 and Apr,

948, respective'>

Copies of Th'd and. =ou>>th Supplemental L".dent@ es ta Scranton's Ha tcace and Deed of rust, dat c as af Nay 1, 1952 I and Se temhe" ',

195 2 g respect'vely Copies of

= if"s Supplemental Zndent -e, dat d as of Janua>>y 31,

1956, and Supple-mental Xndenture, dated Janua>>y 31, 1956, to Scrantan's Mortgage and Deed of Trust purchase and Loan Ag eemen of Appl'cant dated Decemher 27, 1966 Docket No.

=-6 326 Docket No.

Z-6483 Docket No.

- -74'1 Docke No.

- -74'1 Op~lLon c V~cen>> 3u le

~ s~i 8 I C'me f Counsel-Regulator J A"=a's Sta ment o

~casu=

of Can"-"'r Owre ship ~e cised 3y cr Ove Appl'c at 3alanc Shee o Applicant as of Schedu e

A - C'ss. ='cat'-n Us '14'<<J

<<Bee<<

3

C h

~

A

~

~

Ql

<o Cor."'.ueP

==om pace 3

Scaecu'e 3 - P=o-ose vc"-na'n

~ mes Sc1edu'e C -.'lot s

'o."-".anc'a1 Sta"caen-s PP sL -

S tater;.ent o

Con" '.".cent s

PP&i - Zncone S" "'e'ex~ ""= "".e year ence'.

Dec '~e 3~,

'973 PP~ - Sta" r;.en" c" "-a=n'".cs Re'aves" c =o-

".e yea eacH "ec.me 3',

s 973

-PLson Coz an<

~ ic Pe sy '~~

a m ss'on a" A--'

"'cn "cc.'~e No.

Ag ement '"e"seen:

1.

PP &L aced Be "~'h~~

S tee Cc ora'on "a" 6."~ch>>,

1974.

2. Acr=event

'"e-~een PP<

-"at~ Ha=eh L3., '74; see

-xh h~t Z "e= o".

4~1