ML19273B473
| ML19273B473 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 03/12/1979 |
| From: | Varga S Office of Nuclear Reactor Regulation |
| To: | Howell S CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.) |
| References | |
| NUDOCS 7904060471 | |
| Download: ML19273B473 (9) | |
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UNITED STATES
[p NUCLEAR REGULATORY COMMISSION
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MAR 121979 Docket Nos: 50-329 50-330 Mr. S. H. Howell, Vice President Consumer 3 Power Company 212 West Michigan Avenue Jackson, Michigan 49201
Dear Mr. Howell:
SUBJECT:
REQUEST FOR ADDITIONAL FINANCIAL INFORMATION In order to complete our financial review of the Midland Plant, Units 1 & 2, we require the additional information requested by the enclosed.
It is our objective that the review be based upon the most current financial information available consistent with our review completion schedule. To this end, your complete response should be submitted eight weeks prior to issuance of the first supplement to our Midland Safety Evaluation Report, and should be current with financial infor-mation available at the time of submittal. The first supplement to our Safety Evaluation Report for Midland is presently scheduled for issuance August 1,1979. Any change in this scheduled date should be reflected in your response submittal date.
Contact us if yc,a require clarification or other discussion of the enclosure.
Sincerely,,
L I) M.6g brga,k \\
g v6 Chi f Steven A.
Light Water Reactors Branch #4 Division of Project Management
Enclosure:
Financial Requests cc: See next page.
79040604T
MAR 12I979 Consumers Power Company CCs:
Michael I. Miller, Esq.
Isham, Lincoln & Beale Suite 4200 One Fi rst National Pl aza Chicago, Illinois 60670 Judd L. Bacon, Esq.
Consumers Power Company 212 West Michigan Avenue Jackson, Michigan 49201 Mr. Paul A. Perry Secretary Consumers Power Company 212 W. Michigan Avenue Jackson, Michigan 49201 Myron M. Cherry, Esq.
One IBM Plaza Chicago, Illinois 60611 Mary Sinclair 5711 Summerset Drive Midland, Michigan 48640 Frank J. Kelley, Esq.
Attorney General State of Michigan Environmental Protection Division 720 Law Building Lansing, Michigan 48913 Mr. Wendell Marshall Route 10 Midland, Michigan 48640 Grant J. Merritt, Esq.
Thompson, Nielsen, Klaverkamp & James 4444 IDS Center 60 South Eighth Street Minneapolis, Minnesota 55402
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MIDLAND PLANT, UNIT NOS. 1 %ND 2 DOCKET NOS.
50-329 AND 50-330 RECUEST FOR ADDITIONAL FINANCIAL INFORMATION 1.
a.
Indicate the estimated annual cost by year to operate each unit of the Midland facility for the first five full years of each unit's commercial operation.
The types of costs included in the estimates should be indicated and include (but not necessarily be limited to) operation and maintenance expense (with fuel costs shown separately),
depreciation, taxes and a reasonable return on investment.
(Enclosed is a form which should be used for each year of the five year period.)
Indicate the projected plant capacity factor (in percent) for each unit during each of the above years.
b.
Indicate the unit price per XWh which you have experienced on system-wide sales of electric power to all customers for the most recent 12-month period.
2.
Indicate the estimated costs of permanently shutting down each unit of the facility, stating what is included in such costs, the assumptions made in estimating the costs, the type of shutdown contemplated, and the intended source of funds to cover these costs.
3.
Provide an estimate of the annual cost to maintain the shutdown facility in a safe condition.
Indicate what is included in the estimate, assump-tions made in estimating costs, and the intended source of funds to cover these costs.
4.
a.
Provide copies of your prospectus for the most recent security issue and copies of your most recently filed SEC Form 10-K (provide 1978 filing when available).
Provide copies of the preliminary prospectus for any pending security issue. Submit copies of the Annual Report to Stockholders each year as required by 10 CFR 50.71(b).
b.
Describe aspects of your regulatory environment including, but not necessarily limited to, the following: Prescribed treatment of allowance for funds used during construction; rate base (original cost, fair value, other); accounting for deferred income taxes and investment tax credits; fuel adjustment clauses in effect or pro-posed; historical, partially projected, or fully projected test year.
c.
Describe the nature and amount of your most recent rate relief action (s).
In addition, indicate the nature and amount of any pending rate relief action (s). Use the attached form to provide this information.
Pro-vide copies of the submitted financially related testimony and exhibits
s s
MAR 121979 2-of the staff and company in the most recent rate relief action or pending action.
Furnish copies of the hearing examiner's report and recommendation, and final opinion last issued with respect to each participant, including all financially related exhibits referred to therein.
d.
Complete the attached form entitled, " Financial Statistics," for the calendar years 1978,1977 and 1976.
5.
We are aware of the antitrust decision relating to a transfer of a portion of the ownership interest in the Midland facility to one or more Rural Electric Cooperative Transferees:
a.
Indicate the percentage ownership in the facility and any differ-ence between this and the cooperative's percentage entitlement to the electrical capacity and output of the units.
Explain the reason for the difference, if any.
b.
Provide a detailed statement of the projected sources of funds and respective dollar amounts for the cooperative participant's total contribution to the Midland project.
Include a detailed explanation of the assumptions upon which the projected sources of funds are based.
c.
Indicate the amounts of the respective dollar payments to be made to the cooperative by cooperative system participants, if any, upon execution of the ownership agreement. Provide estimates of the total additional payments to be made subsequent to the execution of the agreement and through completion of the units.
d.
If financing is to be provided through REA guaranteed sources, the cooperative must provide copies of the loan commitment notice from REA regarding the proposed REA loans. These must be provided prior to issuance of the construction permit amendment which will be re-quired.
Indicate whether the REA has provided loans to the cooper-ative in the past.
e.
Provide copies of excerpts from state statutes on which the cooperative is relying as authority to incur debt and to take other actions necessary to acquire partial ownership of the Midland.
fac il i ty.
f.
Describe the rate-setting authority and rate covenants of the cooperative and how that authority will be used to ensure the satis-faction of financial obligations in relation to the design, construc-tion, and operation of the facility.
MAR 121979 g.
Describe the nature and amount of the cooperative's most recent rate relief action (s) and its anticipated effect on net margins.
In addition, indicate the nature and amount of any pending rate relief action (s).
h.
Provide copies of the most recent (December 1978) annual member-ship report and other relevant financial information, including copies of the audit report and financial statements covering the latest twelve months of operations.
i.
Indicate the cooperative's intended source of funds to cover its portion of estimated costs as stated in response to itmes 2 and 3, above.
YAR 121979 ATTACHMENT FOR ITEM NO.
1.a.
ESTIMATED ANNUAL COST OF OPERATING NUCLEAR GENERATING UNIT: MICLAND PLANT UNIT NO.1 FOR THE CALENDAR YEAR 19 _
(thousands of dollars)
Ooeration and maintenance exoenses Nuclear power generation Nuclear fuel expense (plant factor
%)........... $
Other operating expenses.....................
Maintenance expenses.......................
Total nuclear power generation.............
Transmission expenses........................
Acministrative and general expenses Property and liability insurance.................
Other A.&G. expenses.......................
Total A.&G. expan:as....................
TOTAL 0&M EXPENSES.....................
Depreciation expense.........................
Taxes other than inccme taxes Property taxes...........................
Other................................
Total taxes other than income taxes...........
Income ta xes - Federal........................
Income taxes - other.........................
Deferred income taxes - net Investment tax credit adjustments - net.
Return (rate of return:
%)..................
TOTAL ANNUAL COST OF OPERATION
~
u se 52 1979 ATTACH'4ENT FOR ITEM NO.1.a.
ESTIMATED ANNUAL COST OF OPERATING NUCLEAR GENERATING UNIT: MIDLAND PLANT, UNIT NO. 2 FOR THE CALENCAR YEAR 19_
(thousands of dollars)
Ooeration and maintenance exoenses Nuclear power generation Nuclear fuel expense (plant factor
%).....
Other operating expenses.....................
Maintenance expenses.................
Total nuclear power generation.............
Transmission expenses........................
Aaministrative and general exoenses Procerty and liability insurance.
Other A.&G. expenses.......................
Total A.5G. expenses....................
TOTAL 0&M EXPENSES.....................
Depreciation expense.........................
Taxes other than income taxes Property taxes...........................
Other................................
Total taxes other than income taxes...........
Income taxes - Federal........................
Income taxes - other.........................
Deferred inccme taxes - net Investment tax credit adjustments - net....
Return (rate of return:,
%)..................
TOTAL ANNUAL COST OF OPERATION
ATTACHMENT FOR ITEM NO. 4.c.
MAR 121979 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 (CCO's)'
Construction work in progress included in Rate base (000's)
Rate of return on rate base authorized Rate-of return on cenmon 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 Recuests Test year utilized Amount (000's)
Percent increase Date petition filed Date by which decision 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 w-,
..m e.-
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ATTACmENT FOR ITUi NO.
4.d.
FINANCIAL STATISTICS yng i ? 1979 12 months ended 1973 1977 1976 (collars in millions)
Earnings available to common equity Average common equity Rate of return on average ccmmon equity Times total interest earned before FIT:
Gross inccme (incl. AFDC) + current and deferred FIT + total interest charges +
amortization of debt discount and expense Times long-term interest earned before FIT:
Gross income (incl. 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 (incl. AFDC) + total interest charges + amortization of. debt discount and expense ' preferr2d dividends AFUDC Net income after preferred dividends Market price of connon Book value of coccon Market-book ratio (end of period)*
Earnings avail. for common less AFDC +
depreciation and amortization, deferred taxes, and invest. tax credit adjust.-
deferred Commen dividends Ratio Short-term debt Bank loans Commercial paper Capitalization (Amount & Percent)
Long-term debt Preferred stock Ccmmon equity
- If subsidiary ccmpany, use parent's data.
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