ML19206B100
| ML19206B100 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 09/03/1969 |
| From: | Burchell J JERSEY CENTRAL POWER & LIGHT CO. |
| To: | |
| Shared Package | |
| ML19206B097 | List: |
| References | |
| NUDOCS 7904210794 | |
| Download: ML19206B100 (5) | |
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EEFORE THE UNITED STATES ATCMIC EIERGY CC:GIISSION In the Matter of JERSEY CENTRAL POWER &
LIGHT COMPANY and Docket No. 50-320 METROPOLITAN EDISON COMPA1TI (Three Mile Island Nuclear Station, Unit No. 2)
FINANCIAL QUALIFICATIONS OF JERSEY CENTRAL POWER & LIGHT COMPANY SEPTEMBER 3, 1969 7904210734 La 7'1
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0.UALIFICATICMS OF W G:EC3 2
ly name is John S. Eurchell.
I am Comptroller of Jersey Central 3
Power & Light Company (hereinafter referred to as Jersey Central).
4 My business background in the utility field dates back to 1935 5
when I van employed by the New Jersey Power & Light Company.
In 1948 6
I became Supervisor of the Accounting !bchine Division, advancing to 7
Supervisor of General Accounting in 1955 and to Systems Coordinator 8
in 1959 Aldo in 1959 my job responsibilitics were extended to include 9
Jersey Central Power & Licht Ccapany.
In 1960 I was appointed Coordinator 10 of Accounting for both Ccmpanics and in 1963 elected Assistant Ccmptroller 11 by the Boards of Directors. Later that year, I was elected Comptroller, 12 a position I now hold.
13 I am a member of the National Association of Accountants and a member 14 of the Accounting Division Advisory Committee of the Edison Electric 15 Institute.
16 2.
DESCRIPTION OF JERSEY CENTRAL SYSTE'I 17 a.
Jersey Central is an operating utility engaged in the generation, 18 transmission, and sale of electric power in portions of north central 19 and east c2ntral parts of New Jersey covering an area of approximately 20 1,528 square miles.
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,b.
Jersey Central serves approxLsately 393,000(1) custeners.
Total operating revenue received during the calendar year 1968 22 c.
23 was $100,337,415 24 d.
Encrcy sair have shown an aver; e increase of 10 5% over the
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25 five year period frcm 1964 to 1963.
Jersey C-ntral's financial position is reflecL~* in the 1967 26 c.
27 and 1968 Annual Reports which have been submitted as part of the 28 application.
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RELATio=IIIP rzra!.- r Jr. t;t'Y cr::TnAL nt:n CPU 2
Jerccy Central in one of four wholly-owned cubcidiaries of General 3
Public Utilities Corporation (hereinafter referred to as CPU) a 4
Penncylvania (2) corporation registered under the Public Utility !iolding 5
Company Act and having its principal place of uusiness in I!cv York City.
6 The other CPU cubcidiaries are Nov Jercey Pcrer & Light Company, 7
Penncylvania Electric Ccapany and Metropolitan Edison dc=pany.
8 Jersey Central and its three sister companies in the GPU system 9
operate so as to ecnstitute a fully eccrdinated and integrated unit 10 as concerns pcVer supply planning and operation. Tacilities for the Il generation and trancaiccion of electric pcuer are evaluated on the basis 12 of their contribution to the entire GPU syste"t.
This planning allevs 13 the use of greatly increased unit sicos of generating fac lities which 14 results in significant reducticnc in unit costs and significant in-15 creases in efficiencies when centrasted with the results of planning 16 Generating capacity for the separate ecmpanicc.
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Co::STF.UCTIo!! EXPE:'DITJFTS 18 Jercey Central's construction erpenditures for 19G3 anounted to 19
$54,774,652 of which $5,325,000 was directly related to the Three Mile 20 Island Unit No. 2 Project. Current esti.ates for construction ex-21 pc.iditurcs over the next several years are as follcvc:
22 Portion of Dudget 23 Total Conctruction Attributable to T.
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24 Buket Unit ':o. 2 (3) 25 1969
$ 72,1c0,000
$ 7,759,000 26 1970 118,ll8,00t (421,000) (4) 27 1971 142,849,cc-8,853,000 28 1972 152,074,000 20,93h,000 29 1973 162,033,000 12,412,00c g -7* 'j
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FTMta:CT;:G 2
a.
Jersey Central has encaced in a centinuing construction program 3
for the expansion of its facilitics, financed by lonc-term debt securi-4 ties, short-term loans, equity financing thrcuch the issuance of ec=e.on 5
stock to GPU and capital contributions frca GPU, and internal sources.
6 All construction is financed on the basis of total requirements. no 7
separate financing is undertaken for specific projects.
8 During the period frca 1948 to 1968, inclusive, approxnaately 9
$456,289,000 were spent in the expansion of facilities, $241,085,000 10 having been raised by the sale of debt securitics.
11 b.
Mortgage Bonds issues in recent years have been rated A (5).
12 Debenture isrues in recent years have been rated Baa (5).
13 c.
It is expected that the Cc=pany's total construction require-14 ments for' the period 1969 thrcush 1973 vill be provided by internal 15 sources, capital contributions frca parent and frca the sale of debt -
16 securities in such a manner as to maintain a scund and conservative 17 capital structure.
18 6.
ConcrusIon 19 Jersey Central Power & Light Cc=pany, in cooperation with 20 Metropolitan Edison Cc=pany is financially qualified to design and 21 construct the Three Mile Island Unit No. 2 Project.
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F00TUOT"3 1
(1) This figure represents a chance from the number set forth in 2
Amendment No. 6 to the application.
3 (2) subsequent to the filing of Amene=ent no. 6 to the application, 4
. GPU has been reincorporated in Pennsylvania.
5 (3) Since Amenitent No. 6 ;o the application was filed, the esti-6 mated cost of construction of unit No. 2 has increased to $206,600,000 7
not including the nuclear fuel inventcry cost for the first core or 8
transmission, distribution or general plant cost. The figures in this 9
column reflect a recent decision to have Jersey Central and Metropolitan 10
'ddison Cc=puay share the financing in cunership of unit No. 2 in the 11 ratios of 25% and 75%, respectively.
12 (4) Includes the sale of 75% of Jcracy Central's investment in the 13 project to' Metropolitan Edison Ccmpany for $17,2'io,000 and purchase 14 by Jcrsey Central of 25% of Ibtropolitan Edison Company's investment 15 aor$3,765,000.
16 (5) Based on Moody's Investment Cervice rating.
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