ML19290A407
| ML19290A407 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 09/21/1979 |
| From: | Vollmer R NRC - TMI-2 OPERATIONS/SUPPORT TASK FORCE |
| To: | Arnold R METROPOLITAN EDISON CO. |
| References | |
| NUDOCS 7911070005 | |
| Download: ML19290A407 (11) | |
Text
R c/690E September 21, 1979 Docket No. 50-289 Mr. R. C. Arnold Senior Vice President Metropolitan Edison Company 260 Cherry Hill Road Parsippany, New Jersey 07054
Dear Mr. Arnold:
In order to assure complete conformance with Section II.7 of the Commission Order of August 9,1979, we intend to review your financial qualifications to operate Three Mile Island-l safety, including (1) your ability to finance plant modifications and other actions identified in the Order, and (2) the safety implications, if any, of pre 3ent and planned cost reductions at the Three Mile Island site.
Please respond to the enclosed request. for financial information by October 15, 1979.
1 Sincerely, Odshalsiennany:
Richard H. Vollmer, Director Three Mile Island-2 Support
Enclosure:
Eight Page Financial Infomation 2224 348 yQ cc: w/ nclosure:
See next page
{h i
79110700 6
R. C. Arnold.
Metropolitan Edison Company Dr. Walter H. Jordan Walter W. Cohen, Consumer Advocate Departme of Justice 881 W. Outer Drive r
Oak Ridge, Tennessee 37830 Strawberry Square,14th Floor Harrisburg, Pennsylvania 17127 Dr. Linda W. Little 5000 Hermitage Drive Robert L. Knupp, Esq.
Raleigh, North Carolina 27612 Assistant Solicitor Knupp and Andrews George F. Trowbridge, Esq.
P.O. Box P Shaw, Pittman, Potts & Trowbridge, Esq.
407 N. Front Street 1800 M Street, N.W.
Harrisburg, Pennsylvania 17108 Washington, D.C. 20006 Chaiman John F. Minnich,d of Comissioners Dauphin Co. Boar Karin W. Carter, Esq.
Assistant Attorney General ggnjuggugg DepartmentofEnvironmentalgesources Harrisburg, Pennsylvania 17101 709 Health and Welfare Building Marrisburg, Pennsylvania 17120 Robert Q. Pollard Chesapeake Energy Alliance Honorable Mark Cohe7 609 Hontpelier Street 512 E-3 Main Capit i Building Baltimore, Maryland 21N 8 Harrisburg, Pennsy;vania 17120 Chauncey Kepford "Ellyn Weiss, E;q.
Judith H. Johnsrud Sheldon, Harmon, Roisman and Weiss Environmental Coalition on Nuclear Power 102515th Street, N.W.
433 Orlando Avenue Washington, D.C. 20005 State College, Pennsylvania 16801 Mr. Thomas Gerusky Holly S. Keck Bureau of Radiation Protection Anti-Nuclear Group Representing York Department of Environmental Resources 245 W. Philadelphia Street P.O. Box 2063 York, Pennsylvania 17404 Harrisburg, Pennsylvania 17120 John Levin, Esq.
Mr. Marvin I. Lewis Pennsylvania Public Utilities Commission 6504 Bradford Terrace Box 3265 Philadelphia, Pennsylvania 19149 Harrisburg, Pennsylvania 17120 Metropolitan Edison Company Jordan D. Cunningham, Esq.
Attn:
J. G. Herbein, Vice President Fox, Farr and Cunningham P.O. Box 542 2320 N. Second Street Reading, Pennsylvania 19603 Harrisburg, Pennsylvania 17110 Ms. Jane Lee R.D. 3; Box 3521 Etters, Pennsylvania 17319 2224 349 Internal Distribution:
(Metropolitan Edison / John G. Herbein) and not to be included as a part of letter but should be distributed enpies of the letter fm the original copy and w/ enclosure (s):
- Ivan W. Smith, Esq.
Atomic Safety & Licensing Board Panel U.S. Nuclear Regulatory Commission Washington, D.C. 20555
- Atomic Safety and Licensing Appeal Board U.S. Nuclear Regulatory Commission Washington, D.C. 20555
- Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commission Washington, D.C. 20555 CDocketing and Service Section U.S. Nuclear Regulatory Commission Washington, D.C. 20555 2224 350
ATTACHMENT FOR ITEM N0.10.d.
FINANCIAL STATISTICS 12 months' ended 1976 1977 1976 dollars in millions Earnings available to common eauity 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-bock 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 ComTercial paper Capitalization (Amount & Percent)
Long-term debt Preferred stock 2224 351 Common equity
- If subsidiary company, use parent's data.
ATTACHMENT FOR ITEM NO.10.c.
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':)
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)
Pendina 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 2224 352
ATTACHMENT for Item No. 4.a.
ESTIMATED ANNUA 1. COST OF OPERATING NUCLEAR GENERATINO UNIT: THPFF Mil F IS! AND NUCI FAR STATION. UNIT 1 FOR THE CALENDAR YEAR 19 (thousands of dollars)
Operation and maintenance exnenses Nuclear potter generation Nuclear fuel expense (plant factor
%)...............
Other operating. expenses...................................
Ma in t e na n c e exp en s e s.......................................
Total nuclear power generation.................
Transmission expenses........................................
Administrative and general expenses Property and liability insurance...........................
Other A.6G.
expenses.......................................
Total A.6G.
expenses..................................
TOTAL O&M EXPEN3ES....................................
Depreciation expense...........................................
Taxes other than income taxes Property taxes............................
Other......................................
Total taxes other than income taxes...................
Income taxes -
Federal.........................................
Income taxes -
other..../......................................
Deferred income taxes -
net....................................
Investeent tax credit adjustments - net........................
Return (rate of return:
%)..........
TOTAL ANNUAL COST OF OPERATION 2224 353
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,.5 REQUEST FOR FINANCIAL INFORMATION THREE MILE ISLAND NUCLEAR STATION, UNIT NO.1 DOCKET N0. 50-289 1.
Provide a detailed statement of the estimated costs required to ccmplete each of the plant modifications and other actions identified in the Commission's Augast 9, 1979 order related to this proceeding.
Indicate amounts attributable to engi-neering fees, physical installations, and other construction expenditures or physical services (specifying nature), indicating the cost estimate for each modification or other action and the aggregate total cost estimate for all such actions.
Indicate for each such action whether it is an operating expense or a capital requirement.
2.
Provide a detailed schedule stating the amounts and timing of projected expendi-
. tures resulting from the cost estimates in item 1 above, and showing total monthly capital and total monthly operating expense requirements for the modifi-cations and other actions.
3.
Complete the attached form entitled, " Pro-Forma Sources of Funds," on a monthly basis for each licensee and GPU, through the month of estimated completion of long-term modifications and other actions related to Unit No.1 as identified in the Comission's August 9,1979 order. Note that this statement is for system-wide expenditures including capital expenditures related to TMI-l and TMI-2.
Indicate the asstriptions upon which the " Sources of Funds" statement is based. These asstrap-tions include, but are not necessarily limited to:
(a) rates of return on average common stock equity, (b) preferred stock dividend rates, (c) long-term and short-term debt interest rates, (d) market / book ratios, (e) common stock dividend payout ratios, (f) target and month-by-month capital structure, and (g) resultant monthly 2224 355
-2 SEC at d indenture coverages over the period. Provide a brief explanation of the basis for each asstnption.
Indicate the es,timated annual cost by year to. operate the subject facility 4.
a.
for the first five full years of commercial operation following restart. 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 invest-ment.
(Enclosed is a form which should be used for erch year of the five year period.) Indicate the projected plant capacity for the unit for each year.
-b.
Indicate the expected source (s) of funds to cover costs in 4.a., above.
Indi-cate the unit price per kWh experienced by each licensee and by GPU on system-wide sales of electric power to all customers for the most recent 12-month period.
Indicate the portion of this unit price attributable to purchased power.
5.
Indicate the estimated costs of pennanently shutting down the facility, a listing of what is included in such costs, the assumptions made in estimating the costs, the type of shutdown contemplated, and the expected source (s) of funds to cover these costs.
6.
Provide an estimate of the annual cost to maintain the shutdown facility in a safe condition.
Indicate shat is included in 1.he estimate, assunptibns made in esti-mating costs, and the expected source (s) of funds to cover these costs.
7.
Provide copies of any orders and directives issued by the Pennsylvania Public Utility Commission (PPUC) and the New Jersey Board of Public Ut.ilities (NJBPU) that relate to funding of costs in items 5 and 6, above.
2224 356
8.
Pr ) vide copies of the joint participation agreement setting forth the procedure by which the licensees will share TMI-l modification expenses, operating expenses and, if necessary, decomissioning costs.
9.
Provide a detailed > itemization of all actions which are related to safe operation of the TMI-l facility that Metropolitan Edison has taken since the TMI-2 incident to reduce costs.
Include any such actions related to facilities shared with TMI-2.
Also, provide an itemization of any additional such cost reduction actions that will be in effect when TMI-l resumes operation. Provide a detailed analysis of the safety implications of each of the identified present and planned cost reduction actions. Describe the criteria used to determine which cost reduction actions are related to safe cperation of the TMI-l facility.
10.'
For each licensee and for GPU:
a.
Provide copies of:
- 1) 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 issue, and
- 5) the 1977 and 1978 SEC Fonn 10-K and the most recent SEC Form 10-Q.
Continue to submit copies of the annual report for each year thereafter as required by 10 CFR 50.71(b).
b.
Describe aspects of each licensee'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 durir.; construc-tion 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.
2224 357
4-c.
Describe the nature and amount of each licensee's most recent rate relief action and the anticipated effect on revenues. In addition, indicate the nature, status, and amount of pending rate relief proceedings, if any.
Use the attached form to provide this information. Provide copies of the hearing examiner's report and reconnendation and the intarim and final rate orders and opinions, including all exhibits referred to therein. Provide copies of all other orders and directives issued by the PPUC and NJBPU related to financing the licensee's operations, including activities at TMI.
Provide copies of the submitted, financially-related test: mony and exhibits of the PVC staff and company in the most recent rate relief action or pending rate relief request.
d.
Complete the enclosed form entitled, " Financial Statistics," for the calendar years 1978, 1977, 1976, and for the most recent 12-month period.
I 2224 358
.