ML19256G466

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Responds to NRC 791210 Ltr Requesting Util Guarantee of 1979 Retrospective Premiums.Forwards 790327 Ltr W/Internal Cash Flow Projection for 1979
ML19256G466
Person / Time
Site: Beaver Valley
Issue date: 12/26/1979
From: Christner R
DUQUESNE LIGHT CO.
To: Saltzman J
Office of Nuclear Reactor Regulation
References
NUDOCS 7912310343
Download: ML19256G466 (2)


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Walter T. Warazinski Legal Departrnent General Attorney 435 Sistn Avenue Aicnard S. Christner Pittsburgn, Pennsylvania Senior Corporate Attorney 15239 por te At orney

,,,,,y,,,, Direct Dial Numr:(4m 45 6-6122 Corporate Attorney John A. Lee Senior Attorney Diane S. Eistnort Attorrey December 26, 1979 Mr. Jerome Saltzman, Chief Antitrust & Indemnity Group Office of Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission Washington, D. C. 20555 Re: Guarantee of Retrospective Premiums

Dear Mr. Saltzman:

Reference is made to your letter of December 10, 1979 ad-dressed to Mr. E. J. Woolever, Vice President (Engineering & Con-struction) of Duquesne Light Company, requesting Duquesne Light Company's guarantee of retrospective premiums for the year 1979 under 10 CFR Part 140.21.

Enclosed is a copy of my letter to you dated March 27, 1979, together with a copy of its enclosure, i.e., a Cash Flow Statement for 1978 (actual) and 1979 (projected), certified by Duquesne Light Company's Vice President (Fiscal). The Cash Flow Statement, which follows the suggested format in the Commission's Regulatecy Guide 9.4, was intended to satisfy the requirements of 10 CFR Part 140.21 that Duquesne Light Company demonstrate its ability to generate cash in excess of its share of the ten million dollars amount of retrospective premiur s applicable to its 47.5%

ounership interest in Beaver Valley Po er Station Unit No. 1, both on an annual and quarterly basis. Duquesne Light Company does not presently own any interest in any other nuclear generating unit in operation.

//100 f s

1664 265 1/7

.,912310 BHS

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Mr. Jerome Saltzman, Chief December 26, 1979 Page Two It was my understanding from Regulatory Guide 9.4 that the Cash Flow Statement would satisfy the requirements of 10 CFR Part 140.21. If any additional documents are necessary, please let me know and I will arrange to have such documents forwarded to you.

Very truly yours,

_e O n i 8

- - -- - _i_. N_ _ a_q Richard S. Christner RSC:reh Enclosure 1664 266

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DUQUESNE LIGHT COMPANY Legal Department March 27, 1979 Mr. Jerome Saltzman, Chief Antitrust & Indemnity Group Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission Washington, D. C. 20555 Re: Beaver Valley Power Station Unit No. 1 - Docket No. 50-334

Dear Mr. Saltzman:

In connection with the annual submittal to the Commission of financial data in support of Duquesne Light Company's guarantee of retrospective premiums (see my letter to you of March 28, 1978 with respect to tt.2 most recent submittal), I am enclosing a Cash Flow Statement for 1978 (actual) and 1979 (proj ected), certified by Duquesne Light ampany's Vice President (Fiscal), showing that cash in excess of ,4,750,000 (Duquesne Light Company's share of the $10,000,000 amount of retrospective premiums applicable to its 47.5% ownership interest in Beaver Valley Power Station Unit No. 1) would be available both on an annual and quarterly basis for the payment of such premiums.

The Statement follows the suggested format in the Commis-sion's Regulatory Guide 9.4. It should be noted that the dollar amounts for the various components proj ected for 1979 are projec-tions only and represent the Company's best estimate of such amounts as of the date on which the Statement was prepared. Events occur-ring during the year could result in the actual amounts differing from the projected amounts.

It is my understanding that Ohio Edison Company and Penn-sylvania Power Company, the other owners of Beaver Valley Power Station Unit No. 1, have made or are making similar submittals.

It is my further understanding that if any indemnity fees are due and owing, they will be billed by the Commission at a later date.

y o 1664 267 EN 34000)3CD2?I

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Mr. Jerome Saltzman, Chief March 27, 1979 Page Two s If you have any questions on the Statement or need any additional information, please let me know.

Very truly yours,

$MO. ~

Richard S. Christner RSC:rch Enclosure.

cc: James R. Edgerly, Esq. (w/ enc.)

Secretary and General Counsel Pennsylvania Power Company Ms. Eileen Bartell Ohio Edison Company bec: Messrs. C. M Atkinson (w/ "enc )

C, N. Dunn E. J Woolever "

J. A. Knepper C. E, Taylor, Jr.

T. P. Gorant W. T. Wardzinski 1664 268

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DUQUESNE LIGilT COMI'/,','

1979 Internal Cash Flow Pro,iection for Beaver Valley No. 1 Nuclear Power Station (Dollars in Thousands)

Prior Year Projection Year Actual Total Total Net Income After Taxes S 65,723 S 80,559 Less Dividends Paid (73,494) (79,678)

Retained Earnings $ (7,771) $ 881 Adjustments:

Depreciation and Amortization S 48,115 $ 52,790 Deferred Income Taxes and Investment Tax Credit 39,797 36,054 Allowance for Funds Used During Construction (20,936) (25,336) .

Total Adjustments S 66,976 $ 63,508 -

Internal Cash Flow S 59,205 S 64,389 Average Quarterly Cash Flow $ 14,801 S 16,097 Percentage Ownership in Beaver Valley No. 1 47.50%

All Operating Nuclear Units Maximum Total Contingent Liability S 4,750 Certified correct:

Cu6:~

C. M. Atkinson Vice President (Fiscal)

Dated March 27, 1979 1664 269

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