ML18030A032

Forwards Request for Addl Info Re Util Finance.Response Requested by 810327

ML18030A032
Person / Time
Site:	Susquehanna
Issue date:	03/04/1981
From:	Tedesco R Office of Nuclear Reactor Regulation
To:	Curtis N PENNSYLVANIA POWER & LIGHT CO.
References
NUDOCS 8103110389
Download: ML18030A032 (11)

Text

V.

Docket Nos.:

50-387 and 50-388 Mr. Norman W. Curtis Vice President - Engineering and Construction Pennsylvania Power and Light Company Two North Ninth Street Allentown, Pennsyl vanf a 13101

Dear Mr. Curtis:

DISTRIBUTION:

rDocket-F~tles LLB81 Rdg OEisenhut BJYoungblood RStark MRushbrook RTedesco SHanauer RVollmer TMurley ORoss RHartfi'eld, MPA OELD OIE (3) bcc:

TERA NRC/PDR L/POR NSIC TIC ACRS (16)

Subject:

Susquehanna Steam Electric Station, Units Nos.

1 and 2 - Request for Additional Informatfon The enclosed questions

~ere telecopfed to PP8L on February 27, 1981.

Please provide your final responses by March 27, 1981.

If you desire any discussion or clarification of the information requested, please contact R.

M. Stark, Project Manager, (301-492-7238).

Sincerely, 0 Iglnal ~g ed b~

Robert L. Tedesoo Robert L. Tedesco, Assistant Director for Licensing Division of Licensing

Enclosures:

As stated cc w/encls.:

See next page As a result of our review of your application for operating licenses for the Susquehanna Steam Electric Plant, we find that we need additfonal information in the area of Utf1 fty Finance.

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Norman W. Curtis Vice President

- Engineering and Construction Pennsylvania Power and Light Company 2 North Ninth Street Allentown, Pennsyl vani a 18101 CC:

Hr. Earle H. Head Project Engineering Manager Pennsylvania Power

& Light Company 2 North Ninth Street Allentown, Pennsylvania 18101 Jay Silberg, Esq.

Shaw, Pittman, Potts Trowbridge 1800 H Street, N.

W.

Washington, D.

C.

20036 Hr. William E. Barberich, Nuclear Licensing Group Supervisor Pennsylvania Power

& Light Company 2 North Ninth Street Al 1 entown, Pennsyl vani a 18101 Edward M. Nagel, Esquire General Counse'i and, Secretary Pennsylvania Power

& Light Company 2 North Ninth Street Allentown, Pennsyl vani a 18101 Bryan Snapp, Esq.

Pennsylvania Power

& Light Company 2 North Ninth Street Al 1 entown, Pennsyl vani a 18101 Robert M. Gallo Resident Inspector P. 0.

Box 52 Shickshinny, Pennsylvania 18655 John l.. Anderson Oak Ridge National Laboratory Union Carbide Corporation Bldg. 3500, P. 0.

Box X

Oak Ridge, Tennessee 37830 Gerald R. Schultz, Esq.

Susquehanna Environmental Advocates P. 0.

Box 1560 Wikes-Barr e, Pennsylvania 18703 Hr. E.B.

Poser Project Engineer Bechtel Power Corporati on P. 0.

Box 3965 San Francisco, Cali fornia 94119 Hatias F. Travieso-Diaz, Esq.

Sh'aw, Pittman, Potts Trowbridge 1800 H Street, N.

W.

'Washington, D.

C.

20036 Or. Judith H. Johnsrud Co-Director Envi ronmenta 1

Coal ition on Nuclear Power 433 Orlando Avenue State College, Pa 16801 Hr. Thomas H. Gerus ky, Oi rector Bureau of Radiation Protection Department of Environmental Resources Commonwealth of Pennsylvania P.

0 ~ Box 2063 Harrisburg, Pa 17120 Hs. Colleen Harsh Box 538A>

ROPr4 Mountain Top, PA 18707 Hr. Thomas J. Halligan Correspondent The Citizens Aqainst iiuclear Oanagers P.

O.

Box 5

Scranton, Pennsylvania 18501 Hr. J.W. Hillard Project HAnager, Mail Code 394 General Electric Company 175 Curtner Avenue San Jose, California 95125 Robert W. Adler Dept. of Environmental Resources 505 Executive House P. 0.

Box 2357 Harrisburg, Pennsylvania 15120

REQUEST FOR FINANCIAL INFORMATION 410.01 l.

a.

Indicate the estimated annual cost by year to operate each unit of the subject facility for the first seven full years of each unit's commercial operation.

The types of costs included in the estimates should be indicated and include (but not necessarily be limited to) operation and maintenance expense (with fuel costs shown separately),

depreciation, taxes and a

reasonable return on investment.

(Enclosed is a form which should be used for each year of the seven year period.)

indicate the projected plant capacity factor (in percent) for each unit during each of the seven years.

Provide separate estimates using 50 percent and 60 percent plant capacity factors.

b.

Indicate the unit price per kWh experienced by each applicant on system-wide sales of electric power to all customers for the most recent 12-month period.

410.02 2.

Indicate the estimated costs of permanently shutting down each unit of the facility, stating what is included in such costs, the assumptions

made in estimating the costs, the type of shutdown contemplated, L

r and the intended source of funds to cover these costs.

4ID 03 3.

Provide an estimate of the annual cost to maintain each unit of the shutdown facility in a safe condition.

Indicate what is inc)uded in the estimate, assumptions made in estimating costs, and the intended source of funds to cover" these costs.

4.

If the facility is jointly-owned provide copies of the joint participation agreement setting forth the procedures by which the applicants will share operating expenses and decommissioning costs.

The following financial information is required for each investor-owned 1

participant:

410. 05 5.

Provide copies of the prospectus for the most recent security issue and copies of the most recent, SfC Form 10-K and 10-g.

Provide copies of the preliminary prospectus for any pending security issue.

Submit copies of the Annual Report to Stockholders each year as r'equired by 10 CFR 50.71(b).

410.06 6.

Describe 'aspects of its regulatory environment including, but not necessarily limited to, the following:

prescribed treatment of allowance for funds used during construction; rate base (original cost, fair value, other); accounting for deferred income taxes and investment tax credits; fuel adjustment clauses in effect or proposed; historical, partially projected, or fully projected test year.

410.07 7.

Describe the nature and amount of its most recent rate relief action(s).

In addition, indicate the nature and amount of any pending rate relief action(s).

Use the attached form to provide this information.

Provide copies of the submitted, financially r el ated testimony and exhibits of the staff and company in the most recent rate rel ief acti on or pend i ng action.

Furn i s h copi es of the heari ng exami ner '

report and recommendati on, and final opi ni.on last i s sued with respect to each parti ci pant, inc 1 ud ing a l 1 financ i a lly related exh ibi ts referred to therein.

4 10.08 8.

Complete the enclosed form entitled,

"Financial Statistics, " for the most recent twelve-month period a nd for the prev ious three calendar years.

4 gr The following financi information is required for each cooperative applicant:

410 Dg l.

Is each participant's percentage ownership share in the facility equal to its percentage entitlement in the electrical capacity and output of the plant?

If not, explain the difference(s) and any resultant effect on any participant's obligation to provide its 4

share of operating costs.

410 10 '.

Describe the rate-setting authority and rate covenants of the co-operatives and how that authority will be used to ensure the satisfaction of financial obligations in relation to operation and eventual shutdown of the 'facility.

3.

Describe the nature and amount of the cooperative's most recent rate relief action(s) and its anticipated effect on net margins.

In addition, indicate the nature and amount of any pending rate relief action(s).

410 12 4.

If membership cooperatives are involved, explain the contractual arrangements between the cooperative and its members that will provide funds for operation and eventual shutdown of the facility.

Provide representative copies of such contracts.

410- 13 5.

Provide copies of the latest annual and interim financial statements.

Also provide copies of similar statements for the corresponding periods ended in the previous year.

Continue to submit copies of the annual financial statements each year as required by 10 CFR 50.7l(b).

ATTACffifENT FOR Il"", fib.

ESTlf'lATED AHtsVAL COST OF OPERATI fiG fiVCf EAR GEfaERATlffG UtlIT:

FOR THE CALENDAR YEhR 19 (thousands of dollars)

Operation and maintenance ex enses fsuclear power oeneration l,u."lear fuel ~expense plant factor Other operating expenses f",aintenance expenses

'Total nuclear power generation

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Transmission expenses...

Administrative and general ex enses

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Property and liability insurance Other A. RG. expenses Total A. &G. expenses

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TOTAL OEM EXPENSES Depreciation expense Taxes other than income taxes Property taxes 0there

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Total taxes other than income taxes.

Income taxes - Federal Income taxes - other Deferred income taxes - net Investment tax credit adjustments

- net.

Return (rate of return:

aaa )

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TOTAL ANNUAL COST OF OPERATION

-".lectri c Gas 5;earn Granted Test year utilized Annual amount of revenue increase requested-test year basis (000's)

Date petition filed Annual amount of revenue increase allowed-test year basis (000's)

Percent increase in revenues allowed Date of 'fina.1 order Effective date Rate base finding (000's)

Construction>>ork in progress included in Rate base (000's)

Rate of return on rate base authorized Rate of return on common equity'uthorized Revenue Effect 000's Amount received in year granted A.-.ount received in subsequent year (If not available, annualize amounts

'received in year granted)

Pendinq Re uests.

Test year utilized Amount (000's )

Percent increase Date petition filed Date by which decision must be issued Rate of return on rate base requested Rate of return on common equity requested Amount of rate base requested Amount of construction work in progress requested for inclusion in rate base

1 Earnings available to common equity Average coction equity Rate of return on average common equity Times total interest earned before FIT:

Gross income (both including and excluding AFDC) + current and deferred FIT

~ total interest charges

+ amortization of debt discount and expense tdol lar: in mil lio~n-Times long-term interest earned before FIT:

Gross income (both including and excluding AFDC) + current and deferred FIT

~ long-term interest charges

+ amortization of debt discount and expense Bond ratings (end of period)

Standard and Poor's Yoody's Times interest and preferred dividends earned after FIT:

Gross income (both including and excluding AFDC)

~ total interest charges

+ amortization of debt discount and expense

+ preferred dividends.

AFUDC bet income after preferred divid ends II Market price of common Book value of common tlarket-book ratio (end of period)*

Earnings avail'. for cocoon less AFDC +

depreciation and amortization, deferred

taxes, and invest. tax credit adjust.-

deferred.

Common dividends Ratio Short-term debt Bank loans Cannercial paper Capitalization (Amount E Percent) long-tenn debt Preferred stock Comon equity

• If subsidiary

company, use parent's data.

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