ML19249A040

Forwards Request for Addl Financial Info to Suppl Info Provided in 790423 & 0622 Ltrs

ML19249A040
Person / Time
Site:	Seabrook
Issue date:	07/17/1979
From:	Rubenstein L Office of Nuclear Reactor Regulation
To:	Tollman W PUBLIC SERVICE CO. OF NEW HAMPSHIRE
References
NUDOCS 7908170612
Download: ML19249A040 (20)

Text

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'n oc:s:EnD Docket Nos.: 50-443/444 i3 mz M yA2 019W" q

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• *f the Secreta 4 Mr. W. C. Tallman, President Public Service Company of New Hampshire

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SUBJECT:

REQUEST FOR FINANCIAL INFORMATION IN ADDITION TO INFORMATION ENCLOSED WITH LETTERS OF APRIL 23, 1979 AND JUNE 22, 1979 - SEABROOK STATION, UNITS 1 AND 2 By our letters of March 21, 1979, and May 23, 1979, and pursuant to 10 CFR Section 50.54(f) and Section IV of Appendix C to 10 CFR Part 50- we requested written responses, signed under oath or affirmation, to an enclosed " Request for Additional Financial Information." We have reviewed your responses enclosed with your letters of April 23, 1979, and June 22, 1979, and find that you need to provide additional information to complete your responses and to clarify some 6f the responses that were provided. The additional information that you need to provide is identified in the enclosure using

• he same item numbering as was used in the enclosure to our letter of May 23, 1979.

Provide your additional responses by July 31, 1979.

If any part of your response cannot be completed by that date, pleara indicate why not and provide the date by when the incomplete portion of the recconse can be completed.

Sincerely,

'E L'.

S.

ubenstein, Branch Chief Light Water Reactors, Branch #4 Division of Pro.iect Management

Enclosure:

As stated cc:

See next oage

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%.ck g Dublic Service Company of New Hampshire ces:

John A. Ritscher, Esq.

Rapes and Gray

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, [coc-5 Soston, Massachusetts C2110 p so

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Ralph H. Wood, Esq.

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3eneral Ccunsel Public Service Company of flew Hampshire goti.'y dD

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1000 Elm Street N. Qyg (*"D -U Manchester, New Hampshire 03105 p

'<.w Mr. Jchn Haseltine, Project Manager Yankee Atomic Electric Company 20 Turnpike Road Westboro, Massachusetts 01581 Mr. Bruce 3. Beckley, Project Manager Public Service Company of New Hampshire 1000 Elm Street

anchester, New Hampshire 03105 Ms. Elizabeth H. Weinhold 3 God frey Avenue Hanotro. New Hampshire 03842 Robert A. Backus, Esq.

O ' Ne 117, Backus, and Spielman 116 Lowll Street Manchester, New Hampshire 03105 Norman Ross, Esq.

30 Francis Street Brookline, Massachusetts 02146

<arin P. Sheldon, Eso.

Sh el don, Ha rmo.1 ano Roisman 1025 15th Street, N. W.

Washington, D. C. 20005 t.auri e Burt, Esq.

Office of the Assistant Attorney General En vi ronment al 3rotecticn Division One Ashburton Place Besten, Massachusetts 02108 P00ROMNAL g

Public Service Company of New Hampshire ces (continued)

E. Tupper Kinder, Esq.

Assistant Attorney reneral Of fice of Attorney wneral 200 State House 'nnex Concord, New Hampshire 03301 Samuel Chilk Secretary of the Comission U.S. Nuclear Regulatory Comission Washington, D. C. 20555 Alan S. Rosenthal, Esq.

Atomic Safety and Licensing 4 peal Board U.S. Nuclear Regulatory Comission Washington, D. C. 20555 Dr. John u. Buck Atomic Safety and Licensing Appeal Board U.S. Nuclear Regulatory Comission Washington, D. C. 20555 Michael C. Farrar, Esq.

Atomic Safety and L. censing 4 peal Board U.S. ';uclear Regulatory Comission Washington, D. C. 20555 Ivan W. Smith, Esq.

Atomic Safety and Licensing Board U.S. Nuclear Regulatory Comission Washington, D. C. 20s55

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j' REQUEST FOR ADDITIONAL FINANCIAL INFORMATION PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE.

(Note: References in this request are to item numbers in our request for additional financial infomation, dated May 23, 1979.)

1. (2., 7.e.)

If a nuclear fuel lease or other arrangement than purchase is consummated, provide a descrip-tion of the arrangement including the net cash flow effect to Public Service Company of New Hampshire (PSCO).

2. (4.a.)

The pro forma sources of funds statement assumes a 28'.' ownership interest for PSCO.

Indicate for each year, as a separate line item, the progress payments to be made to PSCO by other participants for costs associated with the proposed 22 percent transfer that were incurred prior to the date of transfer.

3. (4.a.)

Identify the fom of long-tem debt for each year indicated on the pr o fama statement.

a. (4.a. )

Explain the assumptions underlying the projected increases in net income of 19 percent from 1978 to 1979 and 18 percent from 1979 to 1980.

5. (A.a.)

Explain PSCO's plan for covering negative cash flow in the years 1979, 1981 and i982.

6. (4.a. )

Provide additional justification for the level of preferred stock dividend rates, long-term and short-term debt interest rates, and the market /

cook ratio for new common stock, particularly as these compare to experience of PSCO and the industry.

Assumed costs should be for new financing in the years indicated.

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7. (4.a.)

Explain the projected sizable increase in interest coverage under the first mortgage indenture.

8. (4.a.)

Explain in detail the arrangement by which the other participants would pick up 100 percent of the total project costs until the fourth quarter of 1981.

9. (4.c. )

Assuming a range of interest rates considered realistic by PSCO, state the additional amounts of both first mortgage bonds and general and re-funding mortgage bonds that could be issued con-sidering all legal limitations including interest coverage and bondable property requirements.

10. (4.f.)

Provide copies of the submitted financially-related testimony and exhibitt of the NHPUC staff and PSCO in the most recent rate relief action or pending rate relief request.

11. (4.f.,7.a. ) Provide a detailed explanation of developments in the CWIP case before the NHPUC and/or the courts.

Describe any alternate sources of revenue to CWIP that the company is seeking.

12. (4.f.)

Notify the staff of the final FERC decisions on inclusion of CWIP in rate base.

Indicate the expected effect on annual revenues.

13. (4.h.)

Update the financial statistics for the most recent 12-month period.

14 (7.5.)

Indicate the status of the $10.6 million advance payments expected to be received by PSCO in July 1979.

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15. (7.c.)

Indicate the status of PSCO's efforts to secure additional bank credit. Describe any contingency plans for covering the projected negative cash flow in 1979.

16. (7.e.)

Indicate the success and net proceeds of PSCO's July common stock sale.

17. (7.e. )

Describe in detail the basis for PSCO's belief that it will be able to issue $40 to $50 million of general and refunding bonds later in the year.

Describe all details of the proposed issue.

18.

Provide an update on progress n all other aspects of the financing plan not covered above, for the interim period in which PSCO will continue to own 50 percent of Seabrook.

19. (4.b.)

Provide copies of:

a.

the second quarter interim financial statements, when available; b.

the final prospectus for the company's most recent security issue; c

the preliminary prospectus for any pending security issue; and d.

the second quarter SEC Form 10-0, when available.

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UNITED ILLUMINATING COMPNiY

1. (4a.)

Revision or justification of the following assumptions underlying the pro forma statement of sources and uses of funds:

(A).

Sale of one-half of United Illuminating Company's 20% ownership interest in Seabrook 1 and 2.

(B).

Intere.c rates on short-term borrowings.

( C).

Interest rates on long-term debt.

2. (4d.) Provide statement of present amount of short-term debt outs tanding.

3. (4 f. ) Provide copies of the submitted financially-related testimony and exhibits of the staff and company in the most recent rate relief action or pending rate relief reques t.

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CENTRAL MAINE PfNER COMPANY

1. (4a.)

Revision er justification of the followino assumotion underlying the statement of source and uses of funds:

(A). Rates of return on common equity.

2.

Provide coofes of:

(A).

The most recent interim financial statements.

(B).

The mos t recent 3EC Form 10-Q.

1 (ab.)

Provide calculations of net earnings and interest coverace for the most recent twelve-month period using the def'nitions o' net earnings and annual interest requi'rements (on debt oresently outstanding) using the most restrictive test set forth in the mortcage bond indenture. Assuming a range of interest rates considered realistic, state the additional amount of first mortgace bonds which could be issued under the most restrictive test based on net earnings as defined by the indenture for the most recent twelve-month per-iod.

J. (4e.) Assumino a rance of dividend yields consider >d realistic hv the utility, state the additional amount of Dreferred stock that could be issued by applying the most restrictive test for preferred dividend coverage for the most recent twelve-month period.

9. (4f.,

Provide coofes of the submitted financially-rela ted testimony and exhibits of the staff and company in the most recent rate relief action or pendino rate relief request.

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9 MONTAUP ELECTRIC COMPANY

1. (4a.)

Revision er justification of the following assumptions underlying the applicant's pro forma statenent of sources and uses of funds:

(A). Rates of return on common equity.

(B).

Interest rates on long-term debt.

(C).

Interest rates on short-term borrowings.

2. (da.) For both Brockton Edison Company and Eastern Utilities Associates:

(A). Completc the statement of Sources of Funds for System-Wide Construction Expenditures During Period of Construction 6f Subject Nuclear Power Plant through the year of earliest estimated completion of Unit No. 2.

Indicate the assump-

. tions 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) preferred stock dividend rate; (c) lanc-term and short-term debt interest rates; (d) market / book rat';; (f) target, year-by-year capital structures; and (g) resultant SEC and indenture interest coverages over the period of construction. Provide a brief exolanation of the basis for each assumotion.

1 (ab.)

For vontaup Electric Company, The Fall River Electric Company, and The Brockton Edison Comoany, provide copies of:

(A).

the 1977 and 1978 annual financial statements.

(3).

the most recent interim financial statements.

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4. (4b.)

For Eastern Utt'11 ties Associates, orovide copies of:

(A).

The most recent interim financial statements.

(8).

The most recent SEC Form 10-0.

5. (4c.)

For Eastern Utilities Associates and The Brockton Edison Comoany, provide copies of the most recent Officer's Certificate of Net Earnings Certificate prepared in conjunction with the issuance of mortgage bonds.' debentures and showing interest coverage cal-culations usino 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 tests or alter-native earnings tests and bandable property additions.

Provide calculations of net earnings and interest coverage for the os' recent 12-month period using the definitions of net harnings and annual interest requirements (on debt presently outstanding)using the most restrictive test set fdcth 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 perica.

5. lad.)

For Eas:ern Uti!? ties Associates, The Fall River Electric Company, and The Brockton Edison Company, provide a detailed explanation of all other restrictions, indenture provisions or constraints on the issuance of short and long-term debt, preferred stock, preference stock and common stock. Short-term debt should include bank lines of credit and cammercial paper, if any.

Indicate compensating balance requirements if any, for bank loans and amount of short-term deoc presently outstanding.

7. (Je.'

For Eastern Utilities Associates, The Fall River Electric Company, and The Brockton Edison Company, if the corporate cha rte r contains a preferred stcck coverage requirement, orovide :ocies of that pcrtion o# the charter. Assuming 90 C,

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7. (de.)

a range of dividend yields considered realistic by (continued) the utility, state the additional amount of preferred stock that could be issued by applying the most restrictive test for preferred dividend coverage for the most recent 12-month period.

8. (4f.)

For Eastern Utilities Associates, Fall River Electric Company, and The Brockton Edison Company, describe the nature and amount of the most recent rate relief action and the anticioated effect on revenues.

In addition, indicate the nature, status, and amoont of any cending rate relief proceedings. Use the attached form to provide this information. Provide copies of the hearino examiner's report and recom-mendation and the interim and final rate orders and opinions, including all financially related exhibits referred to therein. Provide copies of the submitted, financially-related testimony and exhibits of the staff and company in the most recent rate relief action or pending rate relief request.

C'escribe asoects of the respective regulatory envi-ronments including, but not necessarily limited to the following: Test year utilized (describe nature and timing); prescriled treatment of allowance for funds used during construction and of construction work in progress (indicate percentage and amount included in rate base); form of rate base cost, fair value, other (describe)]; accoun[ original ting for deferred income taxes and investment tax credits; and fuel adjustment clauses in effect or proposed.

9. (ag.)

For Eastern Utilities Associates, The Fall River Electric Company, and The Brockton Edi;on Comcany, provide a list of generating units, transmission and distribution facilities and general plant projects to be constructed during the period of construction of the subject nuclear cower olant, showino the tyce of facility, net cacacity for each generating unit, the dollar amounts to be exoended for each facility during each of the years involved, and in-service date of each facility, lib 2 t

10 (4h.)

For Eastem Utilities Associates, Fall River Electric Company, and Brockton Edison Company, complete the form entitled, " Financial Statistics" for the most recent 12-month period and for the years ended December 31, 1978, December 31, 1977 and December 31, 1976.

11 (4h.) For Montaup Electric Company, complete the fom entitled,

" Financial Statistics" for the most recent 12-month p eri od.

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NEW ENGLAND PO4ER CmPANY

1. (4a.) Revision or justification of the following assumptions underlyino the pro forma statement of sources and uses of funds:

(A). Rate of return on common eouity.

(R).

Interest rates on short-term borrowinas.

(C).

Interest rates on long-term debt.

(D). Dividend yield rate on preferred stock.

2. (ah.) Revision of financial statistics in conformity with form sucolied, including most recent twelve munth per-iod.

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CENTRAL VERMONT PUBLIC SERVICE _ CORPORATION

1. (4a. ) Revision or justification of the following assumptions underlying the pro fonna statement of sources and uses of funds:

(A).

Dividend yield rate on preferred stock.

(5).

Interest rate on long-term debt.

(C).

Interest rate on short-term borrowings.

2. (4b.) Provide copies of:

(A).

The most recent SEC Form 10-Q.

(3).

The most recent interim financial statements.

3. (4d.) Statement of amuunt of short-term debt presently out-standing.

4 (4f.)

Describe the natu'a and amount of the company's most recent and pending rate relief actions using the pre-vious enclosed form.

5. (4f.) Provide ccpies of the subnitted financially-related testimony and exhibits of the staff and company in the most recent rate relief action or pending ate relief request.

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GREEN MOUNTAIN POWER CORPORATION

1. (4a.) Complete the Source and Uses of Funds statement during the period of construction of the subject facility through the year of the estimated cmpletion date for unit no. 2 (1979-1985).

2. (ab.) Provide copies of:

(A). The most recent interim financial state:.cnts.

(B).

The most recent SEC Form 10-Q.

3. (4.)

Provide a list of facilities to be constructed during 9

the period of construction of the subject facility (1979-1985).

4 (Ja.)

Clarify projected coverage of long-tenn debt interest with respect to indenture requirements.

5. (ah. ) Cmplete the financial statistics form for the most recent twelve-month period.

NEW BEDFORD GAS AND ELECTRIC COMPANY

1. (4b.) Provide copies of:

(A). The most recent interim financial statements.

(B). The most recent SEC Form 10-Q.

2. (4c.) Provide

?aistions of net earnings and interest coverage for the 'ast recent twelvewaonth period using the def-

'..itions cf net earr.ings and annual interest requirements (on debt p esently outstanding) using the most restrictive test, set f.rt? in the mortgage bond indenture.

3. (4f.) 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 previously 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 referred to therein. Provide copies of the submitted, financially-related 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); pre-scribed treatment of allowance for funds used during construction and of construction work in progress (indicate percentage and amount included in rate base);

form of rate base [ original cost, fair value, other (describe)]; accounting for deferred income taxes rnd investnent tax credits; and fuel adjustment clauses in effect or proposed.

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T0lN OF HUDSOff POWER AND LIGHT DEPARTMENT

1. (Se.)

Provide copies of the most recent interim financial s tate. men ts.

2. (5g.) Cescribe the nature and amount of the most recent

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rate relief action and the. anticipated effect upon revenues.

Indicate the nature and amount of any

ending rate relief action.

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MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPANY

1. (5d. ) Provide copies of the most recent interim financial s tatements.

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BANG 0R HYDRO-ELECTRIC CCMpANY

1. (4a.) Revision or justification of the following assumptions underlying the pro foma statement of sources and uses of funds:

(A).

Pates of return on common equity.

(B).

Interest rates on short-tem borrowings.

(C).

Interest rates on long-tem d bt.

(D).

D,ividend yield on preferred stock.

2. (4b.) Provide copies of:

(A).

The most recent interim financial statements.

(B).

The most recent SEC Fom 10-Q.

3. (a. ) Provide calculations of net earnings and interest c

coverage for the most recent twelve-month period using the definitions of net earnings and annual interest requirements (on debt presently outstanding) using the most restrictive test set forth in the mortgage indenture.

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TAUNTON MUNICIPAL LIGHTING PLANT COMMISSION

1. (Se.) Provide copies of the most recent interim financial statements.

2. (5.)

Describe the nature and amount of the most recent 9

rate relief action and the anticipated effect u ca revences.

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

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