ML19206A944
| ML19206A944 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 08/27/1969 |
| From: | Burchell J JERSEY CENTRAL POWER & LIGHT CO. |
| To: | |
| Shared Package | |
| ML19206A937 | List: |
| References | |
| NUDOCS 7904210644 | |
| Download: ML19206A944 (5) | |
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T SHAW, P!TTM AN, PoTTS, TROW B RIDG E & M AD DEN eAnn suiL0tNG enACELET SM AW A CA CODE 202 910 IN STR E CT, N. W.
Au s AT O. POTTS PHON C 296-3 8 88
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MARTIN O. ERALL i
Mr. J. D. Bond Mr. Jack M.
Campbell U. S. Atomic Energy Ccanission Stephenson, Campbell & Olmsted Washington, D.
C.
20545
-ton Avenue 231Washin$77 P. O. Box Dr. Clarke Williams Santa Fe, New Mexico 87501 Brookhaven National Laboratory Upton, Long Island, New York 11973 Mr. R. 3. Briggs, Director Molten-Salt Reactor Program Dr. Abel Wolman Oak Ridge National Laboratory 513 Ames Hall P. O. Box Y The Johns Hopkins University Oak Ridge, Tennessee 37830 Baltimore, Maryland 21218 I
In the Matter of Jersey Central Power and Light Company and Metropolitan Edison Company, Three Mile Island Nuclear Station, Unit No. 2 - Docket No. 50-320 Gentlemen:
Transmitted herewith are copies of testimony on behalf of the Applicants in the referenced proceeding relating to the financial qualifications of the Applicants.
y Velay truly yours, g
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19 1
, Gerald Charnoff
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7904210649 Ccunsel for Jersey Central Power and Light Company and Metropolitan Edison Ccmpany
Enclosures:
As stated above.
cc/w encs.:
Mr. James P. Murray, Jr., (6), Counsel, AEC Regulatory Staff Mr. A. A. Wells, Chairman, Atomic Safety and Licensing Board Panel Mr. Stanley T. Robincon, Jr.,
(30), Office of the Secretary, Atomic Energy Commission
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Mr. Walter B. Lang, Chairman, Ecard of County Comnissioners of Dauphin County
- Mr. Richard Menear, Chairman, Board of Supervisors of Londonderry Township Mr. Thomas M. Gerusky, Chief, Radiological Health Section, Bureau of Environmental Health, Pennsylvania Department of Health G
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i PHORE TE UNITED STATES AT0tHC EriRGY CCIO!ISSICN In the 16tter of JERSEY CE:.TFAL PC'JER & LIGHT CC:GANY TIGES IGLE ISIN D UUCLEAR STATION, U IT NO. 2 Docket No. 50-320 t
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f FINANCIAL QUALIFICAIIONS OF JERSEY CE. TEAL K'4ER & LIGHT CC!GANY l
AUGUST 27, 1959 G3 -141 sw W
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i 1-1.
QdALIFICATIONS OF hT!? NESS s
2 My nar.e is John S. Burchell. I am Ccmptroller of Jersey I
Central Power & Light Company (hereinafter referred to as Jersey 3
4 Central.)
My business background in the utility field d.ites back to 5
6 1935 when I was c: ployed by the New Jersey Power & Light Company.
In 1948 I beca=c Supervisor of the Accounting Ma: hine Divisien, 7
8 advancing to Supervisor cf General Accounting ir.1955 and to Systc=s 9
Coordinator in 1959 Also in 1959 cy job responsibilities were In cxtended to include Jersey Central Power & Light Co.:pany.
10 1960 I was appointed Coordinator of Accounting for both Companies 11 and in 1963 elected Assistant Cc=ptroller by the Bot.rds of Directors.
12 Later that year, I was elected Comptroller, a position I now hold.
13 14 I am a menber of the National Association of Accountants and L member of the Accounting Division Advisory Cc=mittee of the 15 16 Edison Electric Institute.
17 2.
DESCRIPTICN OF JERSEY CENTPAL SYSTFM Jersey Central is an operating utility engaged in the 18 a.
19 generation, transmissien, and sale of electric power in portions of north central and cast central parts of New Jersey covering an 20 21 area of approximately 1,528 square miles.
22 b.
Jersey Central serves approxinately 393,000 custo=crs.
Total operating revenue received during the calendar 23 c.
24 year 1968 was $100,337,415 Energy sales have shown an average increase of 10 5%
25 d.
26 over the five year period frcm 1$64 to IS68. 03'~4, L>
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1.
3 REIATIC:! SHIP FI'1 MEET JERSEY CE.TPAL A:iD GW 2
Jersey Central is ene of four wholly-cwned subsidiaries of i
3 General Public Utilities Ccrperation (hereinafter referred to as I
4 GN), a Pennsylvania corporation registered under the Public Utility l
5 Holding Cc=pany Act and having its principal place of business in l
6 New York City. The other G W subsidiaries are New Jersey Power &
7 Light Cc=pany, Pennsylvania Electric Ccapany and Metropolitan Edisen i
8 Cmp y.
9 Jersey Central and its three sister cc=panies in the GIU system I
10 operate so as to constitute a fully coordinated and integrated unit 11 as concerns power supply planning and operation. Tacilitics for i
I 12 the generation and transmission of electric power are evaluated on l
13 the basis of their centribution to the entire GW system. This 14 planning allows the use of greatly increased unit sises of generating 15 facilities which results in significant reductions in un t costs and 16 si nificant increases in efficiencies when centrasted with the re-6 17 sults of planning generating capacity for the separate cc=panies.
18 4.
CONSTRUcrION EXPE';DHUFIS 19 Jersey Central's construction expenriitures fer 1968 amounted 20 to $54,774,652 of which $5,325,000 was directly rehted to the 21 Three Mile Island Unit No. 2 Project. Current estimate.; for 22 construction expenditures ever the next several years are as 23 follows:
_a_
63-143
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7 Portion of Eudget 1
'2 Total Construction Attributable to ntI 3
Budcet Unit 2 4
19 9
$ 72, loo, coo
$ 7,759,000 6
5 1970 118,118,000 (421,000)(1) 6 1971 142,849,000 8,853,000 7
1972 152,074,000 18,804,000 8
1973 162,o88,000 8,747,000 9
5 FEWiCE!G Jersey Central has en63Ged in a continuing construction 10 a.
11 program for the expansion of its facilities, financed by long-tem 12 debt securities, short-term loans, equity financing through the 13 issuance of ec =cn stock to GIU and capital contributions from 14 GIU, and internal sources. All construction is financed on the 15 basis of total requirements. No sepo rate financing is undertaken 16 for specific projects.
17 During the pccied from 1948 to 1968 inclusive, approximately 18
$456,289,000 were spent in the expansion of facil.ities, $241,085,000 19 having been raised by the sale of debt securities.
20 b.
Mortgage Bond issues in recent years have been rated A(2).
21 Debenture issues in recent years have been rated Baa(2).
It is expected that the company's total construction require-22 c.
23 ments for the period 1969 through 1973 will be provided by internal 24 sources, capital contributions from parent and from the sale of 25 debt securities in such a =anner as to caintain a sound and 26 conservative capital structure.
s.63-144 c,
.3 1
6.
CONCw SIO:i
,2 Jersey Central Power & Light Cc=pany, in cooperaticn with 3
Metropolitan Edison Cc=pany, is financially qualified to design 4
and construct the Three Mile Ishnd Unit 2 Project.
5 (1) Includes the sale of 75% of Jersey Central's 6
investment in the project to Metropolitan Edison 7
Cc=py for $17,240,000 and purchase by Jersey 8
Central of 25% of Metropolitan Edisen Cc=pany's 9
investment for $3,765,000.
10 (2) Based en Mcody's Investment Service rating.
. 63 145 c.w m-