ML19263B528
| ML19263B528 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 01/11/1979 |
| From: | Parr O Office of Nuclear Reactor Regulation |
| To: | Vanbrunt E ARIZONA PUBLIC SERVICE CO. (FORMERLY ARIZONA NUCLEAR |
| References | |
| NUDOCS 7901180354 | |
| Download: ML19263B528 (10) | |
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UNITED STATES g
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,t NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 JAN 111979 Docket Nos. STN 50-592 a r.d STN 50-593 Mr. E. E. Van Brunt, Jr.
Vice President - Nuclear Project Management Arizona Public Service Company P. O. Box 21666 Phoenix, Arizona 85036
Dear Mr. Van Brunt:
SUBJECT:
REQUEST FOR ADDITIONAL FINANCIAL INFORMATION - PALO VERDE 4 AND 5
's n=rt of c..r continuing review of the Palo Verde 4 and 5 application for construction permits, we find that
+e need additional financial information to continue our evaluation.
You sn
'd amend the general and financial portion of your application with ao ional information as specified in the Enclosure.
To maintain our review schedule, we will need a complete response to these requests for additional information by March 9,1979.
If you cannot meet this date, please inform us of the date you can meet so that we may revise our schedule accordingly.
Sincerely, P rr, ef Light Water Reactors Branch No. 3 Division of Project Management
Enclosure:
Request for Additional Financial Information ces w/ enclosure:
See next page ye0118o 36T
t.
Mr. E. E. Van Brunt, Jr. cc: " Arthur C. Gehr, Esq.
Snell & Wilmer 3100 Valley Center Phoenix, Arizona 85073 Charles S. Pierson, Assistant Attorney General 200 State Capitol 1700 West Washington Phoenix, Arizona 85007 Donald G. Gilbert, Executive Director Arizona Atomic Energy Commission 2929 Indian School Road Phoenix, Arizona 85017 George Campbell, Chairman' Maricopa County Board of Supervisors 111 South Third Avenue Phoenix, Arizona 85003 Dr. Stanley L. Dolins Assistant Director Energy Programs (GEPAD)
Office of the,overnor r
1700 West Washington Executive Tower - Rm. 507 Phoenix, Arizona 85007 e
e o
O
REQUEST FOR ADDITIONAL FINANCIAL INFORMATION PALO VERDE NUCLEAR GENERATING STATION, UNIT NOS. 4 AND 5-DOCKET NOS. STN 50-592 AND STN 50-593 1.
Provide the most recent cost estimates for each unit grouped as follows:
(a) total nuclear production plant costs; (b) trans-mission, 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 construction completion.
Also, complete the attached schedule entitled, " Plant Capital In-
' vestment Summary," for each unit using the most recent cost esti-mates.
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 arrangement than purchase, briefly describe the terms of the lease or other arrangement.
3.
Provide copies of the joint ownership agreement,cMtract) among the participants. The Staff will later require wpies 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 ' i Ari::ona Public Service Company by each additional participant for its share of all costs of design and construction of the subject project. This may be accomplished by reference to pertinent portions of the joint ownership agreement.
4.
The following information is required for each investor-owned applicant:
a.
Complete the attached schedule entitled, " Sources of Funds for System-Wide Construction Expenditures During Period of Construction of Subject Nuclear Power Plant," through the year of earliest estimated completion of Unit No. 5.
In-dicate 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 com-mon stock equity; (b) preferred stock dividend rate; (cl long-term and short-term debt interest rates; (d) market / book ratio with respect to the projected comon stock offerings; (a) comon stock dividend payout ratio; (f) target, year-by-year capital -
structures; anif (g) resultant SEC and indenture interest coverages
. t over the period of construction. Provide a brief explanation
. of the basis for each assumption.
b.
Provide copies of:
(l.
the 1977 and 1978 annual reports 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 ir Je; and (5.) ti.; 1977 and 1978 SEC Form 10-K and the most recent SEC Form 10-0.
Continue to submit copies of the annual report for each year there-after as required by 10 CFR 50.71(b).
Provide copies of the most recent Officer's Certificate or Het c.
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 in-denture.
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 alternative earnings tests and bond-able property 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 outstanding) 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.
If the corporate charter contains a preferred stock coverage requirement, provide copies of that portion of the charter.
Assuming a range of dividend yields considered realistic by 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, Provide a detailed explanation of all other restrictions, indenture e.
provisions or constraints on the issuance of short and long-term debt, preferred stock, preference stock and comon stock. Short-term debt should incluae bank lines of credit and commercial paper, if any.
Indicate compensating balance requirements, if any, for bank loans.
,- 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 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); prescribed 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 and investment tax credits; and fuel adjustment clauses in effect or proposed.
Provide a list of generating units, transmission and distribution g.
facilities 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.
Complete the attached form entitled, " Financial Statistics" h.
for the most recent 12-month ~ period and for the years ended December 31, 1977, December 31, 1976 and December 31, 1975.
5.
The following information is required for each municipal applicant:
Provide a detailed statement of the projected sources of funds a.
for each municipal applicant's planned overall construction program during the period of construction of the subject project.
Indicate the expected breakdown between internally-generated Provide funds and external sources for each year of this period.
a detailed explanation of the assumptions upon which the sources of funds statement is based.
If any municipal applicant is to finance its ownership share b.
with bonds, indicate the source of funds for paymen'. of uiterest charges and principal.
. Indicate the legal authority by which each municipal applicant
. can issue bonds to provide financial support for the subject project.
Describe the nature, amount, rating, and success of each municipal c.
applicant's most recent revenue and general obligation bond sales.
Indicate the current total outst.iding indebtedness in each category for each entity, d.
Provide copies of the official statement for the most recent bond issue. Provide copies of the preliminary statement for any pending security issue.
Provide copies of the most recent annual financial report e.
and the most recent interim financial statements for each municipal applicant. Continue to submit copies of the annual inancial report for each year thereafter as required by 10 C'R 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 not, explain the difference (s) and any resultant effect on any participant's obligation to provide its share of design and constro-tion costs.
Describe the rate-setting authority of each municipal applicant g.
and how that authority may be used to ensure the satisfaction of financial obligations 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 Indicate the nature and amount of any pending rate revenues.
relief action (s).
ATTACHMENT FOR ITEM NO. 1 PLANT CAPITAL INVESTMENT
SUMMARY
BASIC DATA Name of plant Cost basis;at start of construction Net capacity MW(e)
Reactor type Location Type of cooling Run of river Design and construction period Natural draf t cooling towers Month, year NSSS order Mechanical draft placed cooling towers Month, year of commercial Other (describe) operation Length of workweek ho"es Interest rate, interest during construction si-ole? or coepound?
COST
SUMMARY
Account Number Account Title Total Cost (thousand dollars)
DIRECT COSTS 20 Land and land rights....................
PHYSICAL PLANT 21 Structures and site facilities..........
22 Reactor plant equipment.................
23 Turbine plant equipment.................
24 Electric plant equipment................
25 Misc. plant equipment...................
Subrotal........................
Spare parts allowance...................
Contingency allowance...................
Subtota1........................
INDIRECT COSTS 91 Construction facilities, equip't, and s e rv i c e s..............................
92 Engineering and const, mg't. s ervices...
93 Other costs.............................
94 Interest during construction............
Subtota1........................
Start of construction cost..............
- Escalation during construction (__% yr.)
Total plant capital investment ($
/KW)
- Indicate separate escalation rates for site labor, site materials, and for purchased equipment, if applicable.
ATTADf9tMT FOR ITEM NO. 4.8.
g Appilcant:
Muclear Plant:
PRO FORMA SOURCES OF FUNDS FOR STSTEM-WIDE CONSTRUCTION EXPEN0lTURES AND CAPliAL STRUCTURE UURING FERIOD OF 00M51 RUT.Tiori or suTJitTTTIIKR TMTR FIANI Millions of Dollars Construction fears of Subject helear Power Plant tritR ML FINANCING Lonsnon stock
$~] $
Freferred stock Long-term debt:
Notes payable Contributtons From parent-net Other funds (describe)
Total Enternal Funds LMitRMLLT GE*'tRAf t0 CASH net income Less:
preferred distdends coninon dividends Retained earnings Daferred taxes Invest, tax cred.-deferred Depreclaton and amort.
Change In working capital Less: AF00 Total Internal Funds TOIAL FUNDS S
I CONSTRUCil0M EXPEIGITURE5*
Muclear power plants I
I I
Other Total const exp's.
I
. Subject nuclear plant S
OTHERCAPITALRtpIREMENTS RedumptIon of naturIng Bond 5 Acquisttlon of Bonds for Sinking Funds Miscellaneous Requirements (detall)
TDIAL CAPITAL REQUIREMENTS CAPITAL STRUCTURE ($ 81)
Long-term debt 1 $
1 $
1 $
1 $
1 $
1 $
1 $
1 $
1 $
1 Preferred Stock Connon equity TOTAL
s' ATTACHMENT FOR ITEM NO. 4,f.
RATE DEVELOPMENTS
-Electric Gas Steam Granted 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 allowed Date of final order Effective date Rate base finding (000's)
Construction work in progress included in Rate base (000's)
Rate of return on rate base authorized Rate of return on common equity authorized Revenue Effect (000's)
Amount received in year granted Amount received in subsequent year (If not available, annualize amounts received in year granted)
Pending Requests Test year utilized Amount (000's)
Percent increase Date petition filed Date by which decisior must be issued Rate of return on rate base requested Rate of return on common equity requested Amount of rate base requested Amount of construction work in progress requested for inclusion in rate base
ATTACHMENT FOR ITEM NO. 4.h.
~, '
FINANCIAL STATISTICS 12 months' ended 1977 1976 1975 dollars in millions Earnings available to common equity Average common equity Rate of return on average common equity Times total interest earned before FIT:
Gross income (both including and excluding AFDC) + 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 AFDC) + current and deferred FIT + long-term interest charges + amortization of debt discount and expense Bond ratings (end of period)
Standard and Poor's Moody's Times interest and preferred dividends earned after FIT:
Gross income (both including and excluding AFDC) + total interest charges + amortization of debt discount and expense + preferred dividends.
AFUDC Net income after preferred dividends Market price of common Book value of common Market-book ratio (end of period)*
Earnings avail. for common less AFDC +
depreciation and amortization, deferred taxes, and invest. tax credit adjust.-
deferred.
Common dividends Ratio Short-term debt Bank loans Commercial paper Capitalization (Amount & Percent)
Long-term debt Preferred stock Common equity
- If subsidiary company, use parent's data.