ML18219B373

Indiana & Michigan Electric Co. Notice of Proposed Sale of Nuclear Plant to Newly-Organized Subsidiary Company and Related Transactions

ML18219B373
Person / Time
Site:	Cook
Issue date:	04/20/1971
From:	Schneider R US Securities & Exchange Commission, Division of Corporate Regulation
To:	US Atomic Energy Commission (AEC)
References
Download: ML18219B373 (3)

Text

MEMO ROUTE SLlP See me about thl6. For concurre,. For action.

Form AEC-93 (Rcv. hfay 14, 1947) AECh( 0240 Note and return. For elgnature. For Information.

TO (Name and unit) INITIALS REMARKS TcFO co ies of a recent notice C. A. Love oy OGC j FEDERAL REGXSTER are enclosed for your information.

DATE 36 F.R. 7488 DOCKET NOS. 50-315 & 50-316 Indiana & Michi an Electric Com an To (Name and unit) INITIAIS REMARKs (Donald C. Cook Nuclear Plant Units 1 and 2)

DISTRIBUTION:

Docket Pile (2)W DRL Reading DATE PHR-2 Reading RCDeYoun To (Name and unit) INITIALS REMARKS OGC M. Karman PlKaras (2)

MATaylor DATE F RO~(Namo and unit) REMARKS

~+~~,.P~ gg~ ~(cia~

Prank M. Karas Licensing Asst.

PHR-2/DRL PHONE HO. DATE 7407 4/28/71 USE OTHER SIDE FOR ADGITIOHAI. HEI IARKS cpo: r666 0 t66 6le

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))) ~ )w) 7188 NOTICES proceeds of cash capital contributions Corps of Engineers, and various other sEetjntT>rs ann Fxcoar<ac from I&M or of long-term financing. regulator authoritics miff be required Gcncrating Company will report the fs- with the transfer from in'onnection

.POI(fi)1lsslM suancc of its conunon stock on its bool's I&M to Generating Company of vari---

by recording the 1,500,000 shares of com- ous licenses', permits, and other authori-I70-50041 mon stock to bc'ssued to thc cxtcnt of zations and (ii) thc long-term power INDIANA & MICHIGAN ELECTRIC CO, $ 1 pcr share as "Capital Stock-Com- contract between I&M and'encrathtg mon Stock" and thc balance as "Capital Company Ivill bc fllcd with, and made Notice of Proposed Salo of Nuclear Surplus-Premhmi on Commotf Stock." effective as a rate schedule by, the Fed-Plant to Newly-Organized Sub- The Nuclear Plant will bc made up of eral Power Commission.

sidiary Company and Related tmo 1,100,000-kilowatt nuclear generat- It is stated that thc fees and expenses Transactions ing units and associated equipment and to bc htcurred fn connection with the

.faciHties and is presently expected to proposed transactions are estimated at At RIL 13, 1971. $ 52,000 for LM of which $ 50,000 rcprc-cost a total of not less than $ 180 million.

Notice is hereby given that Indiana & Unit No. 1 is to be placed in commercial settts a Michigan transfer fee. $ 17,000 Michigan Electric Co. (I&M), 2101 Spy operation in 1973 and Unit No. 2 in 19V4. for Generating Company of Ivhlch $ 15,-

Run Avenue, Fort Wayne, IN 46801, an It is presently contemplated that Gcn- 000 represents legal expense, and $ 10,000 electric utility subsldary company of crating Company will finance the com- for American, Electric Power Scrvicc American Electric Potvcr Co., Inc. (AEP), pletion of thc Nuclear Plant through cash Corp.

a registered holding company, ltas flie capital contributions or advances from Notice is furtltcr given that any in-an application-declaration and an 1&M and by means of thc issuanco of terested person may, not later. than amendment thereto with this Commis- such securities to banks, lnstltutions, and May 4, 19V1, request fn writing that a sion pursuant to the Public UtilityHoM- to the public as this Cotnmission and tho hearing be held on such matter, stathtg ing Company Act of 1935 (Act), desig- Michigan Public Service Commission may the nature of hfs interest, thc reasons nating sections 6, V, 9; 10, and 12 of tho authorize pursuant to applications to bc for such request,'nd the issues of fact Act as applicablo to tlto proposed trans- made at a later time. It fs stated that thc or law 'raised by said application-actions. All interested persons arc re- proposed transactions mflf permit Gcn- declaration which he desires to contro-ferred to the application-declaration, crating Company to provide a substantial vert; or he may request that he bo noti-which is summarized belo)v, for a com- portion of the necessary financhtg of the fied if the Commissfon should order a plete statement of the proposed trans- Nuclear'lant through the direct issu- hearing thereon. Any such request should

'ctions. ance of debt sccuritics. be addressed: Secretary, Securities and, I&M proposes to acquire for $ VO mil- All of the electric power and energy Exchange Commission, Washington, D.C.

lion cash all of the common stock of In- generated at the Nuclear Plant is to bc 20549. A copy of such request should bc diana & Michigan Potver Co. (Generating sold to I&M by Generating Company served personally or by mail (airmail if Company), a new company fncot>orated pursuant to a long-term power contract. thc person being served is located more <.

under the laws of Michigan for tlte pur- Pursuant to such contract, I&M would than 500 miles from the point of mailing) pose of (i) acquiring, completing the be entitled to all of the clcctrlc power upon thc applicant-declarant't'hc construction of, owning, and operating and energy generated at the Nuclear above-stated address, and proof of serv-thc Donald C. Cook Nuclear Generating Plant and, in consfderation for such en- ice (by aGidavft or, fn case of an attorney Plant (Nuclear Plant), which I&M is titlement, Ivould obligate itself to Gen- at law, by certiflcate) should bo filed with presently construct,ing at Brfdgman, erating Company to pay, from time to tho request. At any tlmc after said date, Mich., and (ii) selling, upon commence- time for such power and energy, amounts tlto application-declaration, as amended ment of operation of thc Nuclear Plant, which, when added to funds obtained by or as it may be further amended, may be all of the electric power and energy gen>> Generating Company from other sources, granted and permitted to become effec-.

crated by that plant to I&hf. Generating will enable Genera, ting Company to pay tive as provided in Rule 23 of tho general Company will acquire from I&M, and all of its operating and other expenses, rules and regulations promulgated under I&Mwill transfer and assign to, Generat- inchtding (1) any amount whfch Gen- the Act, or thc Commission may grant ing Company, (f) all of the property erating Company may bc required to pay "exemption from such rules as provided in owned by I&M at tltc Nuclear Plant and on account of principal and,interest for Rules 20(a) and 100 thereof or take such (ii) all of I&M's right, title, and fnterest debt securities and (il) such additional other action as ft may deem appropriate.

h1 any contracts, agreements, and prop- amount as is. necessary after any re- Persons who request a hearing or advice erty in conncctlon with equipment or quired provision for taxes on, or meas- as to Ivhether a hearing is ordered will ~

other facilities for thc Nuclear Plant. In ured by, income to enable Generating rcceivc notice of further developments in exchange therefor, I&M will acquire Company to pay requhed dividends on this matter, including the date of the=

1,500,000 shares of Generating Com- any preferred stock it may issue and such hearing (if ordered) and any postpone-pany's common stock, par value $ 1, and antount as will represent a fah return ments thereof.

such amount of interest-bearing notes as on the common stock investment in For the Commission, by thc Division of mill aggregate, together with the $ 70 mil- Generating Company as may be per- Corporate Regulation, pursuant to dele-lion of consideration for such 1,500,000 mitted .by regulatory authorities having gated authority shares of common stock, an amount jurisdiction.

~, equal to tlto amount of IIs book in- I&M intends, upon acquiring the fsEhL3 RoshI IE F. SCIINEIDEA)

Rccorrf Ing Secretary.

~

vestment (mith appropriate recognition common stock of Generafing Company, of contract retainagcs, accrued taxes, to file under Rule 2 for an exemption IF'oc.71-5443 Pliect 4-10-71;8:47 am]

and other liabilities assumed by Gener- from the Act as a holdhtg company on ating Company) in the Nuclear Plant on thc basis that it miff be predominantly the day the transfer is consutmnated. a, public-utility company whose opera-The notes miff be subordinated to any tions as such do not extend beyond thc securities subsequently issued by Gener- State in which it is organized and States ating Company to banks, institutions, and contiguous thereto.

public, mill have a maturity of 10 'he states Xfccnsa.-), < Z Q Si years, wfff,bear interest at an annual rate Tfm application-declaration equal to the primo commercial credit that the issuance and sale of the com- EQUITAIILE LIFE CON rate. of ManufactutLIE Ifanover'rust mon stoc!'f Generating Company is ENTERPi EPCO Co. in effect frotn time to time, and miff subject to the jurisdiction of thc Michi- -~p gan Public Service Commission and that Notice iF'pificafion for a Uconso as bc prepayable at any time without yremium or pettalty. Zt is presently con- no other State or Federal commission, other titan this Commission, has jurisdic-

-a t, 'nter rise Small Ifusi-templated that the notes will bo paid ness InvesTAfiiiff'Iitp tion over thc proposed transactions, cx-with cash available to Generating Com-pany from its oyerations or, subject to requisite regulatory authority, with tho 1

ccpt that (i) approvals of thc Atomic Energy -Commission, tho U.S. Army as a FEDERAL REGISTER, VOL. 36, NO. 76 TUESDAY, APRIL 2 0, 1971

~i ..

-An application for a lice r~se EtffNf b'ILL tness to