ML19211C273

Discusses Request for Withholding Financial Info from Public Disclosure Per 10CFR2.790.SEC Feels Public Disclosure of Projections Presents No Liability

ML19211C273
Person / Time
Site:	Palo Verde
Issue date:	12/21/1979
From:	Parr O Office of Nuclear Reactor Regulation
To:	Lenzie C NEVADA POWER CO.
References
NUDOCS 8001110143
Download: ML19211C273 (3)

Text

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W ASHING TON, D. C. 20555 DEG 21 19.' -

Docket Nos. STN 50-592 and STN 50-593 Mr. Charles A. Lenzie Vice President, Finance Nevada Power Company Post Office Box 230 Las Vegas, Nevada 89151

SUBJECT:

REQUEST FOR tlITHHOLDING FINANCIAL INFORt'ATICN FROM PUBLIC DISCLOSURE By your letter, dated March 9,1979, you submitted financial schedules and forecasts relating to the Nevada Power Company's share of the Palo Verde Nuclear Generating Station, Units 4 and 5, and requested that they be withheid from public disclosure pursuant to 10 CFR 2.790.

Your reasons for requesting our withholding of this information were that (1) the information was prepared from data available for internal use only, (2) such data have been and will continue to be held in confidence by your company, and (3) substantial ham may be caused to the comeany if the submitted infomation is made publicly available.

Subsequently, by letter, dated September 7,1979, from E. E. Van Brunt, Jr.,

we were requested that concurrent with the withdrawal of the application for Palo Verde, 4 and 5, we return the above financial information to you.

In compliance with this request, we are returning the subject infomation since it is no longer necessary for us to make a finding regarding your financial qualifications for the withdrawn applicatior..

Prior to the withdrawal of the application, a meeting was held with your representatives on May 23, 1979, to discuss your reasons for requesting our withholding of the financial information. Since your representatives stated that the concern about releasing the infomation was the potential harm frcn a third party action (nct the SEC), we agreed to lock into this concern before acting on your request. We subsequently met with the Division of Corporation Finance of the SEC to discuss the above concern and would like to provide for your information what we learned from the SEC. 1740 244 8001110/43

Mr. Charles A. Lenzie ilA 3 ' 1979 At the meeting held with the SEC, the SEC informed us of the following:

(1)

It is the opinion of the SEC's Division of Corporation of Finance that disclosure of the projections to a regulatory agency such as the NRC are distinguishable from the type of projections presented in a prospectus for the marketing of securities.

(2 )

Notwithstanding the above, the SEC is encouraging the disclosure of projections and forward looking information both in SEC filings and, in general, through its safe harbor rule effective July 30, 1979.

(3)

The SEC stated that it felt that disclosure of financial projections and prediction of dividends would be " deemed not to be f alse or misleading under the federal securities laws unless they were prepared without a reasonable basis or disclosed other than in good faith".

(4 )

Consequently, the SEC felt that there would be no viable liability to an NRC applicant in its project ~ ans being made public by the NRC.

Please advise us if you have any questions regarding this letter.

Si ncerely, r'r,

ef Light Water Reacters, Branch No. 3 Division of Project ffanagement

Enclosure:

As Stated cc: w/o

Enclosure:

See Next Page 1740 245 D kb

w Mr. E. E. Van Brunt, Jr.

,,; ; t 3979 Vice President-f; uric,o Project Management Arizona Public Servio' Company P. 0. Box 21666 Phoenix, Arizona 85036 Janice E. Kerr,.Esq.

cc: Arthur C. Gehr, Esq.

.l. Calvin Simpson, Esq.

Snell & Wilner Vi ncent MacKenzie, Esq.

3100 Valley Center California Public Utilities Phoenix, Arizona 85073 Conunission 5066 State Building Charles S. Pierson, Assistant San Francisco, CA 94102 Attorney General 200 State Capitol Kathryn Burkett Dickson, Esq.

1700 West Washington Mark J. Urban, Esq.

Phoenix, Arizona 85007 Counsels for the California !,ergy Resources Conservation and Donald G. Gilbert, Executive Director Develop,ent Comission Arizona Atomic Energy Comission 1111 Howe Avenue 2929 Indian School Road Sacramento, CA 95825 Phoenix, Arizona 85017 George Campbell, Chairman Maricopa County Board of Supervisors 111 South Third Avenue Phoenix, Arizona 85003 Mr. Larry Card P. O. Box 793 Tempe, Ari zona 85281 '

Dr. Stanley L. Dolins Assistant Director Energy Programs (0EPAD)

Office of the Governor 1700 West Washington Executive Tower - Rm. 507 Phoenix, Arizona 85007 Tom Di amond, Es q.

1208 First City National Bank Buiding y40 246 El Paso, Texas 79901

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