ML19261D672
| ML19261D672 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 06/22/1979 |
| From: | Ritsher J Ropes & Gray |
| To: | Vassallo D Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML19261D673 | List: |
| References | |
| NUDOCS 7906250344 | |
| Download: ML19261D672 (220) | |
Text
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s ROPES & GRAY 225 FRANKLIN STREET BOSTON O2110 casse acont ss ROPGR At Csi' Anta cCOC 617 423 6800
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f t 6t a hvea st a 940589 June 22, 1979 U.S. Nuclear Regulatory Commission Washington, D. C.
20555 Attention:
D. B. Vassallo, Assistant Director for Light Water Reactors, Division of Project Management Re:
Seabrook Station, Units 1 and 2, Docket Nos.
50-443 and 50-444; Staff Letter Dated May 23, 1979; Request for Additional Financial Informa-tion
Dear Sir:
On behalf of the Applicants in the above dockets I am forwarding herewith the responses of the licensees to the request for additional financial information contained in your letter of May 23, 1979 (the " Request").
As noted in the Request, Applicants' Amendment 40 to the License Application was received by the Staff while the Request was being prepared.
Subsequently, the Applicants filed Supple-ment No. 1 to Amendment 40.
Both of those documents contained information responsive to the Request which will be incorporated by reference as noted below.
Question 1.
Most recent cost estimates and related data.
Response
Enclosed as Attachment 1 is a schedule of the current cost estimates and the completed schedules " Plant Capi-tal Investment", together with the requested data on site labor requirements and pay rates.
Question 2.
Nuclear fuel leasing.
Response
There is presently no fuel lease or other arrange-ment than purchase in effect for any fuel for the Seabrook Pro-ject.
Public Service Company of New Hampshire is in the process of negotiating such financing and, if it is consummated, a descrip-tion of the arrangement will be furnished.
2304
's35 7906250 3)f
Ropts & GnAy U.S. Nuclear Regulatory Commission June 22,1979 Question 3 Joint Ownership Agreement and provisions governing progress payments.
Response
A composite copy of the Agreement for Joint Ownership, Construction and Operation of New Hampshire Units, dated May 1, 1973, including amendments through the Seventh Amendment, dated as of April 18, 1979, was filed as Attachment 1 to Amendment 40 and is incorporated by reference.
Enclosed herewith as Attachment 2 are copies of the Eighth and Ninth Amendments to the Joint Ownership Agreement.
The provisions governing progress payments by the joint owners are set forth in Paragraph 11 of the Joint Ownership Agreement and in the Ninth Amendment to the Joint Ownership Agreement.
Those relating to the adjustment of interests which is the subject of Amendment 40 are set forth in the Seventh Amendment to the Joint Ownership Agreement.
Question 4 Information for investor-owned applicants.
Response
(1)
As to New Bedford Gas and Edison Light Company and Montaup Electric Company, material responsive to this question was filed as part of Amendment 40 and is incor-porated by reference.
(ii)
As to Central Vermont Public Service Corporation, Green Mountain Power Corporation, Bangor Hydro-Electric Company and Central Maine Power Company, material responsive to this question was filed as part of Supplement No. 1 to Amendment 40 and is incorporated by reference.
(iii)
As to Public Service Company of New Hampshire (indi-cated interest - 28%), the following material is enclosed as :
(a)
Source of Funds Schedule.
(b) 1977 and 1978 Annual Reports to Stockholders; 1st Quarter Report, 1979, to Stockholders; Fcrm 10-Q for quarter ended March 31, 1979; Prospectus, dated May 15, 1979; 1977 and 1978 Form 10-K Annual Reports.
A regis-tration statement relating to common stock was filed with the SEC on June 21, 1979 and copies will be fur-nished as soon as available.
(c)
Indenture provisions on Bondable Property and Net Earnings Certificates; together wish calculations of earnings and coverages as of April 30, 1979 2304
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ROPES & GRAY U.S. Nuclear Regulatory Commission June 22, 1979 (d)
Limitations on various types of financing, including preferred, preference and common stock.
(e)
Calculation of potential additional preferred stock.
(f)
Description of regulatory environment; Deci-sion, dated May 25, 1978, of New Hampshire Public Utilities Commission, including the Twelfth Supplemental Order which incorporates certain corrections thereto; Decision, dated May 17, 1979, of New Hampshire Supreme Court; Initial Decision on Issue of Inclusion of CWIP in Rate Base, dated January 26, 1979, of Hearing Officer of Federal Energy Regu19. tory Commission (PSCo has requested that FERC defer a final decision in this matter until the requisite deci-sions on the adjustment of interests in Seabrook have been issued); copy of NHPUC Order, dated May 8, 1979, scheduling show cause proceeding on exclusion of CWIP--
no decision has yet been issued in this proceeding.
{g)
Schedule of Construction Projects.
(h)
Financial Statistics.
(iv)
As to New England Power Company (indicated interest -
9.95766%), the following material is enclosed as Attachment 4.
General response to questions in the May 23 letter with refer-ences to other exhibits which include:
(a)
Pro Forma Source of Funds Schedule.
(b) 1977 and 1978 Form 10-K Annual Reports which include the respective Annual Reports to Stockholders; Form 10-Q for quarter ended March 31, 1979; Prospectus, dated July 28, 1978.
(c)
Indenture provisions on Additional Froperty and Net Earnings; and Net Earnings Certificates.
(d)
Restrictions on issuance of securities.
(e)
Preferred Stock coverage requirements.
(f)
Rate developments and a copy of Order, dated December 30, 1977, by Federal Energy Regulatory Commis-sion as to rate filing together with financial testi-mony in that proceeding.
(g)
Schedule of Construction.
2304 337 (h)
Financial Statistics.
4 ROPES & GRAY U.S. Nuclear Regulatory Commission June 22, 1979 (v)
As to The United Illuminating Company (indicated interest - 16.43531%), the following material is enclosed as :
(a)
Pro Forma Source of Funds Schedule.
(b)
Form 10-Q for quarter ended March 31, 1979, as amended; quarterly report to Stockholders, April 1, 1979; Prospectus, dated July 24, 1978; Form 10-K for 1977, with 1977 Annual Report to Stockholders; Form 10-K for 1978, with 1978 Annual Report to Stockholders.
(c)
Net earnings material.
(d)
Restrictions on issuance of securities.
(e)
Preferred stock coverage requirements.
(f)
Rate Developments and regulatory environment.
The Decision, dated December 20, 1978, of the Public Utilities Control Authority of Connecticut (now the
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Connecticut Department of Business Regulation -
Division of Public Utility Control) was filed as A to PSCo letter to D. B. Vassallo, dated April 19, 1979, and is incorporated by reference.
(g)
Schedule of Construction.
(h)
Financial Statistics.
Question 5 Information for each municipal applicant.
Response
As to Massachusetts Municipal Wholesale Electric Company and Town of Hudson, Massachusetts Light and Power Depart-ment, material responsive to this question was filed as part of Amendment 40 and is incorporated by reference.
As to Taunton Municipal Lighting Plant Commission, material responsive to this question was filed as part of Supplement No.
1 to Amendment 40 and is incorporated by reference.
Question 6.
(The reminder to Vermont Electric Cooperative, Inc. is noted and the Staff will be kept informed as to the status of the REA loan request.)
Question 7a.
Explain the method by which PSCO will cover the revenue shortfall resulting from the expected exclusion of CWIP from rate base.
2304 338
ROPES & GRAY U.S. Nuclear Regulatory Commission June 22, 1979
Response
On June 5,1979 a hearing was he,1d before the NHPUC on its order to the Company to show cause why it should not as of May 7,1979 eliminate from its existing rates that portion based on CWIP.
The question before the NEPUC was whether a May 5, 1979 New Hampshire statute mandated immediate elimina-tion of existing CWIP from the rate base.
Briefs have been filed and the decision of th9 NHPUC is pending.
If the NHPUC orders the Company to elimit. ate from its rates that portion based on CWIP, the Company's existing retail rates would be reduced approximately $17,500,000 on an annual basis.
If an adverse order is in fact rendered by the NHPUC, the Company would take immediate action to preserve its present revenues, including an appeal of any such order to the New Hampshire Supreme Court or a request to the NHPUC for immediately effec-tive new rates, or both.
Question 7b.
Clarify PSCO's need for advance payments from other participants.
If such payments are integral to the financing plan, provide a schedule thereof.
Resco$se:
As part of its plan to obtain needed funds, the Company expects to receive in July, 1979 advance payments aggre-gating $10,600,000 from other Seabrook participants.
These ad-vance payments from the other Seabrook participants will be re-paid with the proceeds from any nuclear fuel financing obtained by the Company.
Question 7c.
Provide details of PSCO's progress in secur-ing additional bank credits.
Response
The Company has approached two large commercial banks to secure additional bank credit.
One such bank has de-clined to participate in the credit; the other such bank has not yet conveyed its decision to the Company.
If appropriate, the Company would consider approaching other banks to secure addi-tional loan capacity.
Question 7d.
Explain limitations on PSCO's ability to sell General and Refunding Mortgage Bonds due to the expected exclu-sion of CWIP from rate base.
Response
See response to question 4(111)(d) above.
Question 7e.
Provide an update on progress in all other aspects of the financing plan described in the April 19 letter.
Response
The Company's financing plan for the interim period prior to implementation of the adjusted interests in Seabrook as previausly described included nuclear fuel financ-ing, possible security issues and short-term borrowings.
The Company continues to anticipate that each of these vehicles will contribute to its interim financing plan.
2304 339
ROPES & GRAY
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U.S. Nuclear Regulatory Commission June 22, 1979 As to nuc3 ear fuel financing:
negotiations with one insti-tutional invester were terminated in May.
However, negotiations are being pursued with four banks and the Company anticipates that a firancing arrangement will be in place by the end of the summer which will provide for reimbursement of $20,900,000 at that time for expenditures previously made and would provide an additional $12,300,000 during the balance of the year.
Part of the initial reimbursement would be used to repay the advances from other Seabrook participants referred to previously.
.As to short-term borrowings:
the NHPUC approved limit re-mains at $121,700,000.
The revolving credit agreement with seven maj or commercial banks which presently matures on July 2,1979 has been increased to $115,000,000 and the banks have advised the Company that they are willing to extend the maturity date to October 15, 1979 The Company has additional lines of credit of
$5,350,000 with New Hampshire banks.
The Company is continuing efforts to obtain additional bank support.
As to: security issues:
the Company sold $30,000,000 of its Preferred Stock on May 27, 1979 (see Prospectus dated May 15, 1979 filed herewith).
The Company has filed with the SEC a regis-tration statement for a proposed offering of 2,000,000 shares of Common Stock for sale in early July and will furnish copies of the preliminary prospectus as soon as available.
The Company continues to believe that it will be in a position to issue ap-proximately $40,000,000 to $50,000,000 of General and Refunding Bonds later in the year, if satisfactory progress on the adjust-ment of Seabrook interests is made.
Respectfully submitted, PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE By its attorney, k
/
d.,
John A. Ritsher Enclosures cc:
Attached List
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Copies to:
E. Tupper Kinder, Esqu' ire Alan S. Rosenthal, Chairman As'sistant Attorney General Atomic. Safety and Licensing
. Environmental Protection Division Appeal Board Office of the Attorney General U.S. Nuclear Regulatory Commission 208 State House Annex Washington, D.C.
20555 Concord, New Hampshire 03301
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~ Dr. John H. Buck Karin P. Sheldon, Esquire Atomic Safety and Licensing Sheldon Harmon, Roisman & Weiss Appeal Board Suite 566 U.S. Nuclear Regulatory Commission 1725 I Street, N.W.
Washington, D.C.
20555 Washin5 ton, D.C.
20006 Michael C. Farrar, Esqulre Atomic Safety and Licensing-Dr. Ernest O.
Salo Professor of Fisheries Research Appeal Board U.S. Nuclear Regulatory Commission Institute Washington, D.C.
20555 College of Fisheries University of Washington Ivan W.
Smith, Esquire Seattle, Washington 98195 Atomic Safety and Licensing' Dr. Kenneth A. McCollum Board Panel U.S. Nuclear Regulatory Commission 1107 West Knapp Street Washington, D.C.
20555 Stillwater, Oklahoma 74074 Robert A. Backus, Esquire Joseph F. Tubridy, Esquire O'Neill Backus Spielman 410.0 Cathedral Avenue, N.W.
Washington, D.C.
2.0016 116 Lowell Street Manchester, New Ear.pshire 03105 Dr. Marvin M. Mann Atomic Safety and Licensing Laurie Burt, Esquire Assistant Attorney General Board Panel U.S. Nuclear Regulatory Commission One Ashburton Place Washington,- D. C.
20555 Boston, Massachusetts 02108 Lawrence Brenner, Esquire Office of the Executive Legal Director U.S. Nuclear Regulatory Commission Washington, D.C.
20555 2304 341 e
9 Question 1 Provide the most recent 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 uni.: 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 comstruction start for each unit and the earliest and latest estimated dates for completion of construction of each unit.
Answer 1 The construction cost estimates for Seabrook Station, separated into Units 1 and 2, with AFUDC estimated for the entire project calculated according to PSNH's methods, are as follows:
$ in 1,000's Unit 1&
Unit 2 &
1/2 Common 1/2 Common l
(a) Total nuclear production plant costs
$ 1,237,621
$ 1,371,187 (b) Transmission, distribution, and 2
general plant cost 15,700 9,900 (c) Nuclear fuel inventory costs for 3
first core 84,060 91,430
$ 1,337,381
$ 1,472,517 Also, attached are " Plant Capital Investment Summary Schedules" for each unit.
The total estimated manual site labor is 28.4 million manhours or 12.3 man-hours /
kWe. The estimated average site labor pay rate (including fringe benefits) as of January 1973 was $8.88/ hour and as of April 1919 is $12.95/ hour. Construction of both units was started in July 1976 and is expected to ba completed between February, 1982 and June, 1986 for Unit #1 and January, 1984 and October 1988 for Unit #2.
1 Estimated January 1979, includes AFUDC; but excludes nuclear fuel.
2 Costs estimated in 1973 and 1977, includes all transmission facilities, with land rights estimated for New Hampshire only; excludes AFUDC. Distribution and general plant costs are included in (a) above.
Estimated April 1979, does not include AFUDC. 6/14/79
A L Lot.lliiieri t it - I telli N o.~ l / = PLANT CAPITAL INVESTME.*T 5/29/79
SUMMARY
L. BASIC DATA Seabrook Station Name of plant Unit #1 + 1/2 Common Cost basis; at start of construction Net capacity 1150 MW(e) Reactor type Westinchouse pun Location Seabrook. N. H. Type of cooling Design and construction period Run of river Natural draf t cooling Month, year NSSS order towers placed Janunry. 1971 Month, year.of commercial ~ Hechanical draft cooling' towers operation Ao ril. 1983 Other (describe) Atlantic Ocean Length of workweck 40 Hr. 5 Days hours ,T' Interest rate, interest during construction 9 1/2 XXX4EECCor compound? "F-COST SlRDIARY Account Number Account Title Total Cost (thousqpd dollarst' DIRECT COSTS .g 20 Land and land rights........................ S 1,250 Pl!YSICAL PLANT 21 Structures and site facilities.............. 19R.097 22 Reactor plant equipment..................... 170.232 23 Turbine plant equipment..................... 68.264 24 Electric plant equipment.................... 48.930 j 325, 352, 353 Misc. plant equipment....................... 20.950 Subtotal............................. S 507.718 Spare parts allowance....................... 3,236 p-Contingency a11owance....................... 38,835 5-Subtotal............................. S 549,789 syt-INDIRECT COSTS T< r. hI 91 Construction facilities, equip't, and services..............*.................... S 40.502 P 92 Engineering and.const. og't. s e rv i c e s....... 141.316 If-93 Othercosts................................. 46.341 94 Interest during construction................ 171.000 T Subtotal............................ S 599.159 D' Start of construction cost.................. $1,148,948 t
- Escalation during construction (_8
% yr.). 88,673 Total plant capital investment ($1077 /KW) $ 1,237,621 p,. L.
- Indicate separate escalation rates for sitt labor, site materials, and for 7
purchased equipment, if applicable. Escalation rate is 8%/Yr., simple. fr., t Note: Cost data above is for Unit #1 and 1/2 of the Common facilities. Date [ of latest construction cost estimate is January,1979. 2304 343
- r..c -
W
AttachliiellL le' Item No. ! 5/29/79 PLANT CAPITAL, INVESTMENT
SUMMARY
k BASIC DATA Seabrook Station Name of plant Unit #2 + 1/2 Common Cost basis; at start of construction Net capacity 1150 MW(c) Reactor type Westinghouse PWR Location Seabrook, N. H. Type of cooling L Run of river Design and construction period Natural draft cooling Month, year NSSS order towers placed January, 1973 Mechanical draft cooling Month, year of commercial towers operation February, 1985 Other (describe) Atlantic Ocean Length of workweek 40 Hrs. 5 Days hours ,7 Interest rate, interest during construction 91/2 V4TJ4M or compound? COST SLRDIARY Account Number Account Title Total Cost (thousa,pd dollars 1' DTRECT COSTS y 20 Land and land rights........................ S 1,250 Pl!YSICAL PLANT 21 Structures and site facilities.............. 201,980 22 Reactor plant equipment..................... 143.209 23 Turbine plant equipment..................... 67.932 24 Electric plant equipment.................... 47,191 j 25 Misc. plant equipment....................... 20,515 Subtota1............................. S 482.077 Spare parts allowance....................... 4.263 y -- Contingency al1ovance....................... 51.165 o Subtotal............................. S 537,505 INDIRECT COSTS V 91 Construction facilities, equip't, and (' services.................................. $ 55,997 [. [/ 92 Engineering and.const. mg't. services....... inn ina 93 Other costs................................. 60.675 I 94 Interest during construction................ 414.000
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Subtotal............................ S 716,836 A', Start of construction cost.................. $1.25's.361 t-
- Escalation during construction (
8 % yr.). 116.R76 h Total plant capital investment ($ 1192 /KW) $ 1.371.182___ {.
- Indicate separate escalation rates for site. labor, site _ materials, and for 7
purchased equipment, if applicabic. Escalation rate is B%/Yr., Simple, i Note: Cost data above is for Unit #2 and 1/2 of the Common facilities. Date of latest cost estimate is January, 1979. 2304 144 g
JOINT OWNERSHIP AGREEMENT Eighth Amendment, dated as of April 25, 1979 Ninth Amendment, dated as of June 8, 1979 2304 345
e EIGHTH AMENDMENT TO AGREEMENT FOR JOINT OWNERSHIP, CONSTRUCTION AND OPERATION OF NEW HAMPSHIRE NUCLEAR UNITS This Amendatory Agreement made as of the 25th day of April, 1979, by and among Public Service Company of New Hampshire (PSNH), The United Illuminating Company (UI), Bangor Hydro-Electric Company (Bangor), Central Maine Power Company (CMP), Central Vermont Public Service Corporation (CVPS), The Connecticut Light and Power Company (CL&P), Fitchburg Gas and Electric Light Company (Fitchburg), Hudson Light and Power Department (Hudson), Maine Public Service Company (MPC), Massachusetts Municipal Wholesale Electric Company (>DirEC), Montaup Electric Company (Montaup), New Bedford Gas and Edison Light Company (NB), New England Power Company (NEP), Taunton Municipal Lighting Plant (Taunton), and Vermont Electric Power Company, Inc. (VELCO) (the Participants), WITNESSETH THAT: WHEREAS, the Participants are all of the parties to the Joint Ownership, Construction and Operation Agreement made as of May 1,1973, with respect to the New Hampshire Nuclear Units, as heretofore amended by seven amendments dcted Fhy 24, 1974; June 21, 1974; September 25, 1974; October 25, 1974; January 31, 1975; and April 18, 1979 (the Agreement); CVPS having become such party by virtue of a transer from VELCO, and Bangor, Hudson, HTC, MMWEC and Taunton having become such parties by virtue of transfers from CL&P, pursuant to paragraphs 3.4 or 23 of the Agreement; and WHEREAS, the Participants desire to effect, in accordance with 2304 ;46
/. paragraph 29 of the Agreement, the amendment to the Agreement hereinafter set forth: NOW, THEREFORE, the Participants agree as follows: 1. Amendment of Paragraph 23.1 - Right of First Refusal. The third and fourth sentences of the first paragraph of paragraph 23.1 of the Agreement are deleted and the following inserted in lieu thereof: "Any writing to Participants pursuant to this paragraph shall specity the interest offered, the proposed terms and conditions of the sale, and the date not less than eight months from the date of the writing when it is proposed to consummate the sale. Failure by any Participant within two months of the date of the writing to respond in writing with an offer to purchase the interest involved shall be deemed a declinitation of the offer of sale by such Participant." 2. _ Effective Date of this Eighth Amendment. When counterparts of this Amendment have been executed by Participants having Ownership Shares aggregating at least 80%, this Amendatory Agreement shall become effective in accordance with paragraph 29 of the Agreement. IN WITNESS WHEREOF, each of the undersigned has caused this agreement to be signed by an authorized officer and its respective seal to be affixed hereto on the date indicated but as of the date first above written. Witness: PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE s/ Florence B. Chase By s/ W. C. Talican (Seal) Its President Date April 30, 1979 State of New Hampshire County of Hillsborough The foregoing instru ient was acknowledged before me this 30th day of April,1979, by W. C. Tallman, President of Public Service Company of New Hampshire, a New Hampshire corporation, on behalf of the corporation. 2304 547 My commission expires s/ F. J. Coolbroth (Seal) October 13, 1981 Notary Public
' THE UNITED ILII'MINATING COMPANY s/ Elsie M. Sf te.nley By s/ John D. Fassett (Seal) Its President Date May 2, 1979 State of Connecticut County of New Haven The foregoing instrument was acknowledged before me this 2nd day of May , 1979, by John D. Fassett President , of The United Illuminating Company, a Connecticut corporation, on behalf of the corporation. s/ Richard F. Skinner (Seal) ~ Notary Public My Commission expires April 1, 1980 BANGOR HYDRO-ELECTRIC COMPANY s/ Robert S. Briggs By s/ Tho=as A. Greenquist (Seal) Its President Date May 3, 1979 State of Maine County of Penobscott The foregoing instrument was acknowledged before me this 3rd day of May 1979, by Thomas A. Greenquist President , of Bangor Hydro-Electric Company, a Maine corporation, on behalf of the corporation, s/ Robert S. Briggs (Seal) y 2304 '48
i ~4-CENTRAL MAINE POWER COMPANY s/ Donald F. Kelly By s/ E. W. Thurlow (Seal) Its President Date May 10. 1979 State of Maine County of Kennebec The foregoing instrument was acknowledged before me this 10th day of May , 1979, by E. W. Thurlow President , of Central Maine Power Company, a Maine corporation, on behalf of the corporation. s/ William M. Finn (Seal) Notary Public My Commission Expires September 16, 1984 CENTRAL VERMONT PUBLIC SERVICE CORPORATION s/ James E. Griffin (Seal) s/ Olga G. Laird By Its President Date May 18, 1979 State of Vermont County of Rutland The foregoing instrument was acknowledged before me this 18th day of May , 1979, by James E. Griffin, President , of Central Vermont Public Service Corporation, a Vermont corporation, on behalf of the corporation. s/ Virginia S. Papineau (S eal) Notary Public 2304 349
/ THE CONNECTICUT LIGHT AND POWER COMPANY By (S eal) Its Date State of Connecticut County of Hartford The foregoing instrument was acknowledged before me this day of , 1979, by , of The Connecticut Light and Power Company, a Connecticut corporation, on behalf of the corporation. (S eal) FITCHBURG GAS AND ELECTRIC LIGHT COMPANY s/ Angela P. Carlson By s/ Howard W. Evirs, Jr. (Scal) Clerk Its President Date May 15,1979 Commonwealth of Massachusetts County of Worcester Theforegoinginstrumentwasacknowledgedbeforemethis 15th day of May , 1979, by Howard W. Evirs, Jr.'# President , of Fitchburg Gas and Electric Light Company, a Massachusetts corporation, on behalf of the corporation. s/ Edward R. Harriman __ (S eal) My Commission Expires February 21, 1980 2304 '50
/ HUDSON LIGHT AND POWER DEPART >ENT s/ H. Huehmer s/ George E. Thompson By (Seal) Its Mgr Date 6/7/79 Commonwealth of Massachusetts County of Middlesex The foregoing instrument was acknowledged before me this 7 day of June , 1979, by Horst Huehmer Manager , of Hudson Light and Power Department, an agency of a Massachusetts municipal corporation, on behalf of the corporation. s/ George E. Thompson (Seal) MAINE PUBLIC SERVICE COMPANY s/ Glenna M. Briggs By s/ R. A. Brown (Seal) Its President Date June 6, 1979 State of Maine County of Aroostook The foregoing instrument was acknowledged before me this 6th day of June 1979, by Ralph A. Brown President of Maine Public Service Company, a Maine c3rporation, on behalf of the corporation. s/ G. M. Hovey (S eal) Justice of the Peace 2304 351
A y \\ MASSACHUSETTS MUNICIPAL WHOLESALE ELECTRIC COMPA'lY s/ Phillip C. Otness (3,31) s/ Thomas H. Roger By Its General Manager Date May 30, 1979 Commonwealth of Massachusetts County of Hampden The foregoing instrument was acknowledged before me this 30th day of May , 1979, by Phillip G. Otness General Manager , of Massachusetts Municipal Wholesale Electric Company, a Massachusetts corporation, on behalf of the corporation. T. s/ Thomas H. Roger (Seal) MONTAUP ELECTRIC COMPANY By s/ John F. G. Eichcrn, Jr. (Seal) s/ W. F. O'Connor Its President Date May 7, 1979 Commonwealth of Massachusetts County of Suffolk The foregoing instrument was acknowledged before me this 7th day of May , 1979, by John F. G. Eichorn, Jr. President , of Montaup Electric Company, a Massachusetts corporation, on behalf of the corporation, s/ Douglas Merritt (Seal) Notary Public My Commission Expires on August 23, 1985 2304 ;52
/ NEW BEDFORD GAS AND EDISON LIGHT COMPAN'l s/ M. P. Sullivan By s/ G. E. Anderson (S eal) Its President Date May 9, 1979 commonwealth of Massachusetts County of Middlesex The foregoing instrument was acknowledged t fore me this 9th day of May , 1979, by Gerald E. Anderson President , of New Bedford Gas and Edison Light Company, a bussachusetts corporation, on behalf of the corporation. s/ Michael P. Sullivan (Seal) IEW ENGLAND POWER COMPANY By (Seal) Its Date Co=monwealth of Massachusetts County of Worcester The foregoing instrument was acknowledged before me this day of , 1979, by , of New England Power Company, a Massachusetts corporation, on behalf of the corporation. (Seal) 2304 153
/. TAUNTON MUNICIPAL LIGHTING PIANT s/ W. F. O 'Connor Jr. s/ Joseph M. Blain (Seal) 37 Its Manager Date May 7, 1979 Commonwealth of Massachusetts County of Bristol The foregoing instrument was acknowledged before me this 7th day of May 1979, by Joseph M. Blain Manager , of Taunton Municipal Lighcing Plant, an agency of a Massachusetts municipal corporation, on behalf of the corporation. s/ Edward Roster (Seal) Comm expires Mar. 30, 1984 VERMONT ELECTRIC POWER COMPANY s/ Lise B. Cioffi By s/ S. John Zuckernick (Seal) Its President Date 5/2/79 State of Vermont County of Rutland The foregoing instrument was acknowledged before me this 2nd day of May 1979, by S. John Zuckernick President , of Vermont Electric Power Company, Inc., a Vermont corporation, on behalf of the corporation. s/ Ronald R. Holm (Seal) 2304 354
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- A-e NINTH AMENDMENT TO AGREEMENT FOR JOINT OWNERSHIP, CONSTRUCTION AND OPERATION OF NEW HAMPSHIRE NUCLEAR UNITS This Amendatory Agreement made as of the 8th day of June, 1979, by and among Public Service Company of New Hampshire (PSNH), The United Illuminating Company (UI), Bangor Hydro-Electric Company (Bangor),
Central Maine Power Company (CMP), Central Vermont Public Service Corporation (CVPS), The Connecticut Light and Power Company (CL&P), Fitchburg Gas and Electric Light Company (Fitchburg), Hudson Light and Power Department (Hudson), Maine Public Service Co=pany (MPC), Massachusetts Municipal Wholesale Electric Company (MMWEC), Montaup Electric Company (Montaup), New Bedford Gas and Edison Light Company (NB), New England Power Company (NEP), Taunton Municipal Lighting Plant (Taunten), and Vermont Electric Power Company, Inc. (VELCO) (the Participants), WITNESSETH THAT: WHEREAS, the Participants are all of the parties to the Joint Ownership, Construction and operation Agreement made as of May 1,1973, with respect to the New Hampshire Nuclear Units, as heretofore amended by the agreements dated May 24, 1974; June 21, 1974; September 25, 1974; October 25, 1974; January 31, 1975; April 18, 1979 and April 25, 1979 (the Agreement); CVPS having become such party by virtue of a transfer from VELCO, and Bangor, Hudson, MFC, MMWEC and Taunton having become such parties by virtue of transfers from CL&P, pursuant to paragraphs 3.4 or 23 of the Agreement; and WHEREAS, the Participants desire to effect, in accordance with 2304 355
.W 2 paragraph 29 of the Agree =ent, the a=endment to the Agreement hereinafter set forth: NOW, THEREFORE, the Participants agree as follows: 1. New Paragranh 11.2 - Advance Payments by Participants The Agreement is amended by inserting after paragraph 11.1 the following new paragraph: "11.2 Within not more than 20 days after receipt of a request from PSNH, each of the following Participants will make an advance payment toward the costs of the Units (in addition to the normal monthly pay =ents made by such Participant), of the amount set forth opposite its name below (which ehall be the amount specified in the request): The United Illuminating Company S 3,000,000 Bangor Hydro-Electric Company 111,747 Central Maine Power Company 765,150 ' Central Vermont Public Service Corporation 539,130 Fitchburg Gas and Electric Light Company 51,480 Hudson Light and Power Depart =ent 5,256 Maine Public Service Company 438,168 Massachusetts Municipal Wholesale Electric Company 1,635,924 Montaup Electric Company 571,920 New Bedford Gas and Edison Light Company 406,170 Na.w England Power Company 3,033,090 Taunton Municipal Lighting Plant 30,102 Ver=ont Electric Power Company, Inc. 39,780 $10,627,917 The advance payments shall be credited against costs of the Units applicable to the Ownership Share of such Participant and invoiced or accrued to it commencing January 1, 1980 or on such earlier date as PSNH shall specify by written notice to each such Pr.rticipant; provided, however, that if construction of the Units is suspended or terminated prior to January 1, 1980, such credit shall commence as of the date of such suspension or termination. Such credit shall be in the amount of the advance payment plus interest at the rate specified in paragraph 11.1 of the Agreement from the date of the advance payment to the date of such credit. The amount of the advance payment to be made by each such Participant was arrived at by multiplying twice its Ownership Share at May 31,1979, times $15,000,000, except that The United Illuminating Company's advance payment was arrived at by multiplying its Ownership Share at May 31, 1979, times $15,000,000." 2304 356
, w% /', 2. Effective Date of this Ninth Amendment When counterparts of this instrument have been executed by the Participants, this Amendatory Agreement and the amendment expressed in Section 1 hereof shall become effective in accordance with paragraph 29 of the Agreement. IN WITNESS WHEREOF, each of the undersigned has caused this agreement to be signed by an authorized officer and its respective seal to be affixed hereto on the date indicated but as of the date first above written. Witness: PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE By (Seal) Its Date State of New Ha=pshire County of Hillsborough The foregeing instrument was acknowledged before me this day of June,1979, by W. C. Tall =an, President of Public Service Company of New Hampshire, a New Hampshire corporation, on behalf of the corpcration. (Seal) Notary Public My ce= mission expires October 13, 1981 [ Subsequent signature pages omitted] 2304 357
' Attachment 3 / ADDITIONAL INFORMATION FOR SEABROOK STATION UNITS 1 & 2 RESPONSE OF PUBLIC SERVICE COMPANY OF NEW HAMPSHIRE June 19, 1979 2304 358
4* = Fage I ATTACHMEtrf FOR ITDt No. 4.e. Applicant: Public Service Company of New Hampnhlre . Nuclear Flont Seabrook Unit Nos. 1&2 ~ FRO FORMA SOURCES OF FVNDS FOR SYSTEM-WIDE CONF 7RUCTION EXFFNDITt'RES AND CAPITAL STRUCTURE DURING FERIOD OF CONSTRUCTION OF SUBJECT NUCLEAR FOWER FtANT (M111 tone of pollare) Construct ion Years of Suhject Nuclear Fower Flont FITERNAI. FINANCINC 1979 19R0 1981 1982 1983 1984 1985 Conumm stock 79 $ 70 $ ~5 $ 70 $ T 4 Preferred stock 25 10 8 8 IsnR-term debts 93 55 65 65 65 Notes payable 28 ( 7) (27) 3 (9) (31) (7) Other funds (describe) ele Total External Funde 225 84 76 116 56 34 (7) JNJERNAt.Ly CDfr?ATF.D ASil Net income 43 61 66 75 82 84 87 Less: preferred dividends (8) (10) (10) (11) (12) (11) (11) cossmon dividends (26) (34) (30) (45) (50) (53) (55) Retained earninRe 9 17 18 19 20 20 21 Deferred taxes 9 14 17 19 11 22 6 invent, tax cred.-deferred 10 10 3 8 20 7 2 Depreciation and amort. 16 17 18 19 31 36 47 Change in uorkinR capital (31) (5) (II) (18) 13 4 Less: AFDC (32) (49) (55) (65) (39) (33) (5) Total Internal Funds _ j l9) _ 9 (4) (11) 25 65 75 4 _$ _ 72 105 81 99 68 TOTAL FUNDS 206 93 CONSTRUCTION F1FFNDITURES* Mutteer poner plants $ 169 14 64 40 31 1 Ot he r 31 10 32 41 41 52 52 Total const. emp's. L 200 10 I 46 105 81 83 53 7L 1 Suteject nucle.tr plant J:' lid' ^ T ) 14 64 i 40 i -== = = -== 1 ~~u .- _ n OtitFR Cart TAI._RFqut RrMf'NTS pedumption of NaturinR sends 5 62 25 16 15 Acquisttton of Sands for Sinkina Funde 1 1 I N ttincellencous Requirements (detall) = TOTAL CAPITAL REQUIRFMFKfS 206 93 72 105 81 99 68 C -Ch CAPITAL STRUCTURE ($ & !) lenR-term debt $380 47% $317 392 $346 38% $ 411 402 $ 476 42% $ 525 441 $ 510 43% Freferred stock 109 14 119 15 127 14 134 13 133 12 131 11 1 30 11 4 t'essmen equity 317 39 374 46_ 4 32 As 491 47
- 511 46 5 31 45 552 46 TOTAL 606 100 _
810 100 905 100 1,036 100 1._120 100 1,183 100 1,192 100
- Sale of PSNil share of FtIRrts & Millstone Nuclear t%itto; canti proceeds used to retire First Mortgage Bonde.
6/4/79
~; w". ATTACHMENT FOR ITEM NO. 4.a. Applicant: Public Service Company of New Hampshire Nuclear Plant: Seabrook Unit Nos. 1&2 FINANCIAL STATISTICS 1979 1980 1981 1982 11983' 1984 1985 (a) Rate of return on average common equity 11.98% 14.03% 13.99% 14.00% 14.02% 13.99% 13.98% (b) Preferred stock dividend rate 8.71% 8.91% 9.04% 9.16% 9.15% 9.15% 9.14% (c) Long term debt interest rate 9.28% 9.15% 9.12% 9.37% 9.55% 9.82% 9.78% Short term debt interest rate 13.33% 11.69% 12.08% 12.02% 12.20% 13.42% 14.00% (d) Market book ratio, new common stock 0.92 0.83 0.94 1.03 (e) Common stock dividend payout ratio 77 67 69 70 71 73 73 (f) Earnings to fixed charges - SEC 2.43 3.21 3.26 3.40 3.08 3.18 3.20 (g) Earnings to fixed charges - First Morgage Ind. 4.70 7.65 10.23 11.01 14.12 17.44 25.19 - G & R Indenture 2.81 3.90 3.47 3.00 3.37 3.46 4.00 (h) Earnings to fixed charges & PFD DVDS - Articles of Agmt. 2.08 3.36 3.76 4.65 2.77 2.55 2.19 s N U %o h w w 6/4/79 O
/ Page 3 ATTACHMENT FOR ITEM NO. 4.a. Applicant: Public Service Company of New Hampshire Nuclear Plant: Seabrook Unit Nos. 1 & 2 ASSUMPTIONS (1) Regulatory approval of drawdown of PSNH ownership from 50% to 28% of Seabrook occurs on 12/31/79; other participants pick up 100% of the project cost until the fourth quarter of 1981 when the PSNH ownership share has been reduced to 28%. (2) Sale of PSNH share of Pilgrim & Millstone Nuclear Units effective 12/31/79; Cash proceeds used to retire First Mortgage Bonds. (3) Construction Work in Progress currently allowed by the New Hampshire Public Utilities Commission is retained until 12/31/79. 2304 361 6/4/79}}