ML18057A481

Confirms 900718 Telcon Notification Re Westinghouse Agreement to Join Utils as Equity Investor in Plant

ML18057A481
Person / Time
Site:	Palisades
Issue date:	09/17/1990
From:	Hoffman D CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
TAC-72245, NUDOCS 9009260228
Download: ML18057A481 (4)

Text

consumers Power David P Hoffman Vice President POWERINli Nuclear Operations MICHlliAN'S PROGRESS General Offices: 1945 West Parnall Road, Jackson, Ml 49201 * (517) 788-0453 September 17, 1990 Nuclear Regulatory Commission Document Control Desk Washington, DC 20555 DOCKET 50-255 - LICENSE DPR PALISADES PLANT -

LICENSE CHANGE REQUEST - TRANSFER OF PALISADES PLANT OWNERSHIP (TAC No. 72245)

This will confirm our telephone notification. to the NRC Palisades Project Manager on July 18, 1990 that Westinghouse Electric Corporation has agreed to join Consumers Power Company and Bechtel Power Corporation as an equity investor in Palisades Generating Company. A copy of the news release of July 19, 1990 announcing the agreement is enclosed.

Westinghouse Electric Corporation's participation will be through its wholly-owned subsidiary, Nuclear Services Generation Company, Inc.

David P Hoffman Vice President Nuclear Operations CC Administrator, Region III, USNRC NRC Resident Inspector - Palisades Enclosure OC0990-0409-NL02 A CMS ENERGY COMPANY

• @cons11D1ers Power company

• Westinghouse l'OWERllWi MIClllfiAll'S MlllillES5 Consumers Power Company Bechtel Power Corporation Westinghouse Electric Corporation 212 West Michigan Avenue 15740 Shady Grove Road Westinghouse Building, Gateway Center Jackson, Ml 49201 Gaithersburg, MD 20877 Pittsburgh, PA 15222 CONTACTS:

Westinghouse Michael Stock (412) 642-3424 Consumers Power Paul Knopick (517) 788-2396 Bechtel Bill Kerans (301) 258-3318 FOR IMMEDIATE RELEASE JACKSON, Mich., July 19, 1990 -- Westinghouse Electric Corporation today announced an agreement to join Consumers Power Company and Bechtel Power Corporation as investors in the company that will purchase the Palisades nuclear power plant in South Haven, Michigan.

According to the Equity Subscription Agreement signed today, Westinghouse will become a stockholder in the Palisades Generating Company (PGC). PGC was formed to purchase the existing, operating 768-megawatt Palisades *nuclear generating plant from its present owner, Consumers Power.

Under terms of the agreement, Westinghouse will invest $20 million for about a 22 percent equity interest in PGC. Bechtel previously announced it will have a 33 percent equity interest in PGC. Consumers Power will hold approximately a 44 percent equity interest.

The purchase is expected to be completed and the title transferred to PGC in early 1991 following regulatory approvals and the completion of Palisades' steam generator replacement. PGC represents the first independent ownership of a commercial U.S. nuclear power plant by three major companies.

The purchase price will be approximately equal to the plant's book value.

FINAL WESTINGHOUSE

2 Consumers Powe.r will continue to operate the plant under contract to PGC and buy Palisades' power under a long-term power purchase agreement. A request for approval of the wholesale power rate has been filed with the Federal Energy Regulatory Commission (FERC).

Theodore Stern, Westinghouse senior executive vice president, said, "We are joining Consumers Power and Bechtel in the Palisades Generating Company to make Palisades one of the nation's top nuclear plants. It is a sound investment that complements our energy portfolio."

Frederick W. Buckman, Consumers Power president and chief operating officer, said, "We are pleased that a company with the stature of Westinghouse has committed its significant resources to the completion of the PGC trans-action and the success of the Palisades Generating Company."

Cordell W. Hull, Bechtel Group executive vice president, confirmed the importance of the addition of Westinghouse to the Palisades Generating Company. "We are delighted with this commitment from Westinghouse, a highly respected leader of the nuclear power community," he said. "They will add significant expertise to this challenging endeavor."

Westinghouse Electric Corporation, headquartered in Pittsburgh, is a technology-based, diversified corporation and is a world leader in the commer-cial nuclear power industry.

Bechtel Group, Inc. is a worldwide professional engineering and construction firm headquartered in San Francisco, Calif. Bechtel Power Corporation, a major Bechtel operating subsidiary, is headquartered in Gaithersburg, Md.

Consumers Power Company, the principal subsidiary of CMS Energy Corporation, is Michigan's largest utility serving almost six million of the FINAL WESTINGHOUSE

3 state's nine million residents in 67 of the 68 Lower Peninsula counties. Its headquarters are in Jackson, Mich.

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July 19, 1990 FINAL WESTINGHOUSE