ML19224C698

Requests Addl Financial Info to Supplement 790423 Response to Original NRC 780321 Request

ML19224C698
Person / Time
Site:	Seabrook
Issue date:	05/23/1979
From:	Vassallo D Office of Nuclear Reactor Regulation
To:	Tallman W PUBLIC SERVICE CO. OF NEW HAMPSHIRE
References
NUDOCS 7907060066
Download: ML19224C698 (11)

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May 23, 1979 Docket Nos..

50-443 and 50-444 Mr. W. C. Tallman, President Public Ser vice Company of New Hampshire 1000 Elm Street Manchester, New Hampshire 03105

SUBJECT:

REQ (JEST FOR FINANCIAL INFORMATION IN ADDITION TO INFORMATION ENCLOSED WITH LETTER OF APRIL 23, 1979 By our letter of March 21, 1978 and pursuant to 10 CFR Sectior 50.54(f) and Section IV of Appendix C to 10 CFR Part 50, we requested written responses, signed under oath or af firmt. tion, to an enclosed " Request for Additional Financial Infornation". We have reviewed your responses enclosed with your letter of April 23, 1979 and find that we need additional information to complete our review.

Provide your responses to the enclosed " Request for Additional Financial Information" within thirty days from the date of this letter.

If any part of your response cannot be timely completed, please indicate why not and provioe the date by when the incomplete portion of the response can be completed.

D. B. Vassallo, Assistant Director for Light Water Reactors Division of Project Management

Enclosure:

As stated cc: See attached sheet

,9-79074o b o cogg

Public Service Company of New Hampshire ccs:

John A. Ritscher, Esq.

Ropes and Gray 225 Franklin Street Boston, Fassachusetts 02110 Ra l ph H. Woo.., Es q.

Generai Counsel Public Service Company of New Hampshire 1000 Elm Street Manchester, New Hampshire 03105 tr. John Haseltine, Project Manager Yankee Atomic Electric Company 20 Tu r'np i k e Ro e d Westboro, Massachusetts 01581 fr. Bruce B. Eeckley, Project Manager Public Service Company of New Hampshire 1000 Elm Street Manchester, New Hampshire 03105 Ms. Elizabeth H. Weinhold 3 Godfrey Avenue Hampton, New Hampshire 03842 Robert A. Backus, E q.

O 'Ne' 1, Lackus, and Spielman li6 Lubell Street Manchester, New Hampsnire 03105 f;orman Ross, Esq.

30 Francis Street Brookline, Massachusetts 02146 Karin P. Sheldon, Esq.

Sheldon, Ha rmon and Roisman 1025 15th Street, N. W.

Washington, D. C. 20005 Laurie Curt, Esq.

Of fice of the Assistant Attorney General Environmental Protection Division One Ashburton Place Boston, Massachusetts 02108 9

Public Service Company of New Hampshire ccs (continued)

E. Tupper Ki nder, Esq.

Assistant Attorney General Of fice of Attorney General 208 State House Annex Concord, New Hampshire 03301 Sanuel Chilk Secretary of the Cornission U.S. Nuclear Regulatory Comaission Washington, D. C. 2]555 Alan S. Rosenthal, Esq.

Atomic Safety and Licensing Appeal Board U.S. Nuclear Regulatory Comnission Washington, D. C. 20555 Cr. John J. Buck Atomic Safety and Licensing Appeal Board U.S. Nuclear Regulatory Comnission Washington, D. C. 20555 Michael C. Farrcr, Esq.

Ato.nic Sa fety and Licensing Appeal Board U.S. Nuclear Regulatory Comaission Washington, D C. 20555 Ivan W. Snith, Esq.

Atomic Sa tety and Licensing Eoard U.S. Nuclear Regulatory Co,maission Washington, D. C. 20555 Cr. Ernest Salo, Professor Fisheries Research Institute - WH-10 College of Fisheries University of Washington Seattle, Washington 98195 i~

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REQUEST FOR ADDITIONAL FINANCIAL INFORMATION SEABROOK STATICN, UNIT NOS. 1 AND 2 C0CKET NOS. 50-443 AND 50-444 (Note:

Concurrent with the preparation of this request, the Staff received the Applicants' Amendment No. 40 to the License Application which contains financial information.

If items in this request are duplicative of Amend-ment No. 40, they may be incorporated in the response by reference to the amendment. )

1.

Provide the most recent cost estimates for each unit grouped as follows:

(a) total nuclear production plant costs; (b) transmission, distribution, and general plant costs; and (c) nuclear fuel inventory cost for the first core.

The cost estimates should be in dollars escalated through the year of construc-tion completion. Also, complete the attached schedule entitled, " Plant Capi-tal Investment Summary," for each unit using the most recent cost estimates.

Indicate the estimated site labor requirements expressed as " man-hours /kWe."

Indicate the average site labor pay rate in dollars per hour (including fringe benefits) effective at month and year of NSSS purchase.

Indicate the estimated month and year of construction start for each unit and the earliest and latest estimated dates for completion of construction of each unit.

2.

If nuclear fuel for the facility is to be acquired by lease or other arrange-ment than purchase, briefly describe tb terms of the lease or other arrange-ment.

3.

Provide copies of the joint ownership agreement (contract) among the partici-pan ts.

The Staff will-later require copies of the agreement after it is executed.

The executed agreement must necessarily be in substantial conformity with the agreement previously provided.

Provide a detailed explanation of the provisions governing progress payments to be made to Public Service Company of New Hampshire (PSCO) by each addi-tional participant for its share of all costs of design and construction of the subject project.

This may be accomplished by reference to pertinent por-tions of the joint ownership agreement.

4.

Provide the following information for m:ch investor-owned applicant, excluding F1tchbu, g Gas and Electric Light Company and Maine Public Service Company.

Complete the atteched schedule entitled, " Sources of Funds for Syst:

a.

Wide Construction Expenditures During Period of Construction of Subject Nuclear Power Plant," through the year of earliest estimated completion of Unit No. 2.

Indicate the assumptions upon which the " Sources of Funds" statement is based. These assumptions include, but are not necessarily limited to:

(a) rate of return on average common stock equity; (b) pre-ferred stock dividend rate; (c) long-term and short-term debt interest rates; (d) market / book ratio with respect to the projected common stock offerings; (e) corman stock dividend payout ratio; (f) target, year-by-year capital structures; and (g) resultant SEC and indenture interest

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i ]v"1ces over the period of construction.

Provide a brief exclanation

.. e basis fu. each assumotion.

(It is noted that PSCO provided an abbreviated Sources of Funds statement by letter dated April 19, 1979. PSCO should expand such statement to conform with the above requiremer ^. )

b.

Provide copies of:

1) the 1977 and 1978 annual r:yrts to stockholders; 2) the most recent interim financial statements; 3) the prospectus for the company's most recent security issue;

4) the preliminary prospectus for any pending security issue; and

5) the 1977 and 1978 SEC Form 10-K and the most recent SEC Form 10-Q.

Continue to submit copies of the annual report for each year thereafter as required by 10 CFR 50.71(b).

c.

Provide copies of the most recent Officer's Certificate or Net Earnings Certificate prepared in conjunction with the issuance of mortgage bonds or debentures and showing interest coverage calculations using the tests set forth in the applicable indenture.

Explain bondable property addition provisions as they relate to restrictions on the issuance of new long-term debt.

Provide copies of the portions of the indenture relating to interest coverage testsor alternative earnings tests and bondable prop-erty additions.

Provide calculations of net earnings and interest coverage for the most recent 12-month period using the definitions of net earnings and annual interest requirements (on debt presently out-standing) using the most restrictive test set forth in the mortgage bond indenture.

Assuming a range of interest rates considered realistic by the utility, state the additional amount of first mortgage bonds which could be issued under the most restrictive test based on net earnings as defined by the indenture for the most recent 12-month period.

d.

Provide a detailed explanation of all other restrictions, indenture pro-visions or constraints on the issuance cf short and long-term debt, pre-ferred stock, prefemnce stock and commen stock.

Short-term debt should include bank lines cf credit and commercial paper, if any.

Indicate com-pensating balance requirements, if any, for bank loans.

e.

If the corporate charter contains a preferred stock coverage requirement, provide copies of that portion of the charter.

Assuming a range of divi-dend yields considered realistic by the utility, state the additional amount of preferred stock that could be issued by applying the most re trictive test for preferred dividend coverage for the most recent 12-month period.

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. f.

Describe the nature and amount of the Company's most recent rate relief action and the anticipated effect on revenues.

In addition, indicate the nature, status, and amount of any pending rate relief proceedings.

Use the attached form to provide this information.

Provide copies of the hearing examiner's report and recommendation and the interim and final rate orders and opinions, including all financially related exhibits r aferred to tnerein.

Provide copies of the submitted, financially re-lated testimony and exhibits of the staff and company in the most recent rate relief action or pending rate relief request.

Describe aspects of the Company's regulatory environment including, but not necessarily limited to, the following:

test year utilized (describe nature and timing); prescribed treatment of allowance for funds used during construction and of construction work in progress (indicate per-centage and amount included in rate base); form of rate base [ original cost, fair value, other (describe)]; accounting for deferred inccme taxes and investment tax credits; and fuel adjustment clauses in effect or proposed.

g.

Provide a list of generating units, transmission and distribution facil-ities and general plant projects to be constructed during the period of construction of the subject nuclear power plant, showing the type of facility, net capacity for each generating unit, the dollar amounts to be expended for each facility during each of the years involved, and in-service date of each facility.

h.

Complete the attached form entitled, "Financ:al Statistics" for the most recent 12-month period and for the years ended December 31, 1978, December 31, 1977 and December 31, 1976.

5.

Provide the following information for each municipal applicant:

a.

Provide a detailed statement of the projected sources of funds for each municical applicant's planned overall construction program during the period of construction of the subject project.

Indicate the expected breakdown between internally-generated funds and external sources for each year of this period.

Provide a detailed explanation of the assump-tions upon which the sources of funds statement is based.

b.

If any municipal applicant is to finance its ownership share with bonds, indicate the source of funds for payment of interest charges and principal.

Indicate the legal authority by which each municipal applicant can issue bonds to provide financial support for the subject project.

c.

Describe t,w

ire, amount, rating, and success of each municipal aopli-cant's most rectr.

revenue and general obligation band sales.

Indicate the current total catstanding indebtedness in each category for each enti ty.

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d.

Provide copies of the official statement for the most recent bcnd issue.

Provide copies of the preliminary statement for any pending security issue.

e.

Provide copies of the most recent annual financial report and the most recent interim financial statements for each municipal applicant.

Ccn-tinue to submit copies of the annual financial report for each year there-after as required by 10 CFR Part 50.71(b).

f.

Is each participant's percentage ownership share in the facility equal to its percentage entitlement in the electrical capacity and output of the plant?

If net, explain the difference (s) and any resultant effect on any participant's obligation to provide its share of design and construction ccsts.

g.

Describe the rate-setting authority of each municipal applicant and hcw that authority may be used to ensure the satisfaction of financial obli-gations related to the subject project.

Describe the nature and amount of each municipal applicant's most recent rate relief action and the anticipated effect on revenues.

Indicate the nature and amount of any pending rate relief action (s).

6.

Vermont Electric Cooperative, Inc. is reminded of the requirement "to inform the NRC staff of any action by the Rural Electrification Administration on the pending $18.0 million loan request, including, but not limited to, submittal of copies of the executed REA loan commitment."

(p. 26, safety evaluation supporting amendment no.1 to Seabrook construction permits.)

7.

By letter of April 19, 1979, PSCO provided information regarding its plan to continue financing 50 percent of Seabrook prior to such time as the proposed transfers may become effective.

Provide the following additional information with respect to that plan:

a.

Explain the method by which PSCO will cover the revenue shortfall resulting from the expected exclusion of CWIP from rate base.

b.

Clarify PSCO's need for advance payments from other participants.

If such payments are integral to the financing plan, provide a schedule thereof.

c.

Provide cetails of PSCO's progress in securing additional bank credits.

d.

Explain limitations on PSCO's ability to sell General and Refunding Mort-gage Bonds due to the expected exclusica of CWIP from rate base.

e.

Provide an update on progress in all other aspects of the financing plan described in the April 19 letter.

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Attachn'en t fo r item No. l PLANT CAPITAL I!.".'ESTME:.~"

SUMMARY

BASIC DATA Na=c of plant Cost basis; at -start cf construct. m Net capacity N(e)

Reactor type Location Tyce of cooline Desien and construction eeriod Kun of river Natural dratt cooling Month, year NSSS order towers placed Mechanical draft cooling Month, year of co==ercial towers operation Other (describe)

Length of workweek w,

s Interest rate, interect during construction sinole? or cc tound?

COST SLT RRY Account Sunber Account Title Total Casi (thousand dollars i --

DIRECT COSTS 20 Land and land rights........................

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PHYSICAL PLANT 21 Structures and site facilities..............

22 Reactor plant equipment.....................

23 Turbine plant equipcent.....................

24 Electric plant equip =ent....

i 25 Misc. plant equipcent.......................

Subtotal.............................

S Spare parts allowance.......................

Contingency a110wance.......................

Subtotal.............................

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,m NDIRECT COSTS

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91 Construction facilities, equip't, and

.lg services..................................

S 92 Enginee:ing and.const.

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sectices.......

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other costs.................................

94 Interest during construction................

s Subtotal..........................

Start of construction cost.............

• Escalation during construc tica (

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Total plant capital in/est=ent (S

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• Indicate separate escalation rates for sita labce, site cattrials, and for J.

purchased equip =ent, if applicable.

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AllACittINI TOR II[M NO. 4.a e

N;pilcant:

Nuclear Plant:

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OillER (APRIAL Ri}flRIMINIS f

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,-q' Acquisition of Bonds f or Sinning fun <ls His(cIlaneous Requirements (detall) q TOI AL CAril AL Rif1VIRIHENIS CAPilAl SIRUCIURE ( $ & 1)--

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ATTACHMENT FOR ITEM NO. 4.f.

RATE DE"ELOPMENTS Electric Gas Steam

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Granted

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Test year utilized Annual amount of revenue increase requested-test year basis (000's)

Date petition filed Annual amount of revenue increase allowed-test year basis (000's)

Percent increase in revenues allcwed Cate of final order Effective date Rate base finding (C00's)

Construction work in progress included in.

Rate base (000's)

Rate of return on rate base authorized Rate of return on commc. equity authorized Revenue Effect (C00's) as==

Anount received in year granted Amount received in subsequent year (If not available, annualize amounts received in year granted)

Pending Recuests Test year utilized Amount (000's)

Percent increase g...

Date petition filed 7".,

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Date by which decision must be issued R'

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Rate of return on rate base requested v

i' Rate of return on common equity requested e

Amount of rate base reque;ted

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Amount of construction work in progress r,

requested for inclusion in rate base

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ATTACHMENT FOR ITE'i I;0. 4.h.

FINANCIAL STATISTICS 12 nonths' encec 1973 1977 1976 (collars in -111 ions)

Earnings available to comon equity Average common equity Rate of return on average comron equity Times total interest earned before FIT:

Gross income (both including and excluding AFCC) + current and deferred FIT + total interest charges

• amortization of debt discount and expense Times long-term interest earned before FIT:

Gross income (both including and excluding lf AFDC) + current and deferred FIT + long-te m interest cnarges + amortization of debt discount and expense Bond ra'.ir.gs (end of period)

Standard and Poor's Moody's i-Times interest and preferred dividends earnt 1 after FIT:

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Gross incore (botn including and excluding AFDC) + total interest charges e amortization of debt discount and expense + preferred dividends.

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L AFUDC i

i Net income after preferred dividends P

Market price of comron Book value of co=on K:;

Market-book ratio (end of period)*

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Earnings avail, for ccmmon less AFDC +

depreciation and amortization, deferred R

taxes, and invest. tax credit adjust.-

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Comen dividends E-Ratio fr.,

P Short-term debt

'_r 3ank loans Co=ercial paper l_

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Capitalization (Amou :

2, Percent) t.

Long-term, debt p

Preterred stock Comr.on equity i

• If subsidiary company, use parent's data.

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