ML19296D577

Forwards PA Public Util Commission 800208 Order Re Met Ed Request to Increase Allowable Energy Cost Rate Tariffs. Requests Granted Subj to Further Investigation.Certificate of Svc Encl

ML19296D577
Person / Time
Site:	Three Mile Island
Issue date:	02/14/1980
From:	Levin J PENNSYLVANIA, COMMONWEALTH OF
To:	NRC OFFICE OF THE SECRETARY (SECY)
References
NUDOCS 8003060020
Download: ML19296D577 (7)

Text

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, a COMMONWEALTH OF PENNSYLVANIA N .o . PENNSYLVANIA PUBLIC UTILITY COMMISSION

% ' P. O. BOX 3266, HARRISBURG. Pa.17120 February 14, 1980 m ,,,u, ,c u s ,

REFER TO CUR FILE T-79090332 Secretary U.S. Nuclear Regulatory Commission .

Washington, DC 20555 Attn: Chief, Docketing & Service Section G m

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1. jk!4( g g&4 F Re: Metropolitan Edison Company ,

Docket No. 50-289 (Restart) D f c3

Dear Sir:

Enclosed is a copy of an order issued and entered by the Pennsylvania Public Utility Commission in connection with a request by Metropolitan Edison Company for an increase in its allowable energy cost rate tariffs applicable to its Pennsylvania customers.

Copies have been forwarded to individuals as indicated by the attached certificate of service.

r t Very truly yours, m '

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,sJohn A. Levin Assistant Counsel JAL/j em Enclosures cc: All Parties 8003 06 0 0M

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• p%$2 PENNSYLVANIA 3 -GlI; J [p g PUBLIC UTILITY COMMISSION ,

Harrisburg, ?A 17120 Y;/ . d f .. ' \ s -

Public Meeting held February 8, 1980 Commissioners Present:

Susan M. Shana=an, Chair =an Michael Johnson James H. Cawley Linda C. Taliaferro  ;. .. .- -

Pennsylvania Public Utility Commission, et al.

v. Docket No. I-79040308 Metropolitan Edison Company and Pennsylvania Electric Co=pany 0RDER BY THE COMMISSION:

The Commission has j ust granted, in a prehearing order adopted February 8, 1980, an extension of the schedule for the completion of these proceedings until May 23, 1980. It is in light of that extended schedule that we now consider the motion of Respondents filed on January 29, 1980 for an allowance of an immediate increase in Met Ed's energy cost rate.

This is not a request for a temporary. rate or for extraordinary rate relief. Nor does the Commission view this as a request to amend or modify our order at this docket adopted June 15, 1979, wherein we fixed a levelized energy cost rate for Met Ed. The latter request would now seem to require at least the opportunity for all parties to brief the merits. Rather, the Commission deems the motion of Respondents to be a request for such interim relief as will at least maintad.n the status quo until such ti=e as the Commission is able to render a final decision on a complete record.

Stated in its simplest terms, the motion asserts that without an increase in Met Ed 's energy cost rate the cut.ulative short term debt of the GPU Companies borrowed under the Revolving Credit Agreement will exceed S292 million in April 1980; that the GPU Companies cannot borrow more than $292 million without the prior approval of the banks responsible f or 857. of the total credit commitment; and that the banks responsible a

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for 85% of that credit commitment may not approve credit in excess of

$292 million without a decision of this Commission which will give some assurance that the banks will ultimately be repaid. The refusal of the bank creditors to increase their credit commitment could result in the insolvency of one or more of the CPU Co=panies. The detailed calculations of the forecasted short term debt outstanding in 1980 for Met Ed and che CPU Companies have been avai.lable to the parties for several weeks through the testimony and axhibits of witnesses Graham and Hafer and have been the subject of extensive cross-examination. There is little -

on the present record to cast doubt on Met Ed's proj ections.

Although one may surmise that before April new facts and analysis may be presented on the record to persuasively describe substantially/ '

different forecasts, we do not intend to engage in brinksmanship. The present financial condition of Met Ed is too serious a matter and of too great importance to the public Met Ed serves to warrant the risk of further financial burden brought on by delay arising from the inability of the parties to meet the intended schedule of the Co= mission. We are convinced that the public interest requires that this Commission provide Met Ed's bank creditors with the requisite assurance that they can ultimately be repaid. We are further convinced that we must act without delay.

There is ample evidence in the testimony and exhibits of witnesses Graham and Hafer to establish, crima facie, the forecasted short term debt position of Met Ed and the GPU Companies and the probability that a vote of the controlling banks under the Revolving Credit Agreement to increase the credit limit would be required in April 1980 unless Met Ed's energy cost rate is promptly increased or Met Ed's cash expenditures are promptly reduced. Given the scope of these proceedings (questioning the very ability of Met Ed to continue ar a public utility), we need no evidence to understand the great concern of Met Ed 's bank creditors with the outcome of these proceedings. Therefore, we will take action to ensure that Met Ed's creditors are not required to extend substantially their lines of credit in the absence of a final decision of this Commission on the matters before us.

We will permit Met Ed to increase its levelized energy cost rate, ef'fective March 1, 1980, to remain in effect until the Commission renders a final decision in these proceedings. Since the Commission is granting interim relief upon an open record, it is inappropriate to attempt to prejudge the proper level of rates for Met Ed. Therefore, we will simply permit Met Ed to increase its energy cost rate by the-amount originally requested , 6.9 mills, subj ect to further investigation.

This is not a determination that any specific costs are recoverable. Thus Met Ed is hereby directed to maintain suf ficient records to permit the attribution of these increased revenues to the recovery of such specific costs as the Commission shall determine are recoverable in its final order. In our final order in these proceedings wc*will consider the effect of the increase granted by this order.

Ecwever, inasmuch as this Co= mission is required by present circums tances to grant rate relief during the pendency of these pro-ceedings, we hereby require that Met Ed file with the Commission and make available to the parties, for the duration of the current pro-ceedings, conthly reports of current expenditures in sufficient detail to permit the Commission to monitor Met Ed's efforts to reduce its current expenditures to reasonable minimums.

Further, Respondents have stated their intent to present load canagement and conservation plans by the end of February,1980. We will require Respondents to promptly present and address those matters in the hearings in these proceedings. Also, Respondents are hereby directed to promptly file any tariff changes already proposed in response to our - . - -

June 15, 1979 order which will reduce the need for purchased power and thereby reduce Met Ed's current expenditures; THEREFORE, IT IS ORDERED:

1. That the motion of Metropolitan Edison Company is hereby granted to the extent consistent with this order.

2. That Metropolitan Edison Company may file a tariff or tariff supplement, effective on not less than five days' notice to the Co= mission, increasing its levelized energy cost rate 6.9 mills effective March 1, 1980.

3. That this increase is granted subj ect te further investigation.

4. Tha- this order shall be served on all parties to this proceeding.

BY THE COMMISSION, j .i11 -

n hL William P. Thierfeld .

Secretary (SEAL)

ORDER ADOPTED: February 8, 1980 ORDER ENTERED: February 8, 1980 a

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UNITED STATES OF AMERICA NUCLEAR REGULATORY CCMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of )

)

MEidOPOLITAN EDISON COMPANY ) Docket No. 50-289

) (Restart)

(Three Mile Island Nuclear )

Station, Unit No. 1) )

CERTIFICATE OF SERVICE I hereby certify that I have caused to be forwarded the attached " Order of the Pennsylvania Public Utility Commission" upon those persons as shown by the following Service List by deposit in the United States mail, postage prepaid, this 14th day of February, 1980.

y w ghn A. Levin Assistant Counsel Pennsylvania Public Utility Commission O

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING 30ARD In the Matter of )

)

METROPOLITAN EDISON COMPANY ) Docket No. 50-289

)

(Three Mile Island Nuclear )

Station, Unit No. 1) )

SERVICE LIST Ivan W. Smith, Esquire Marcia Mulkey, Esquire Chairman Office of Executive Legal Director Atomic Saf ety and Licensing U.S. Nuclear Regulatory Commission Board Panel Washington, D.C. 20555 U.S. Nuclear Regulatory Co= mission Ms. Marj orie M. Aamodt Washington, D.C. 20555 R. D. #5 Coatesville, Pennsylvania 19320 Dr. Walter H. Jordan Atomic Safety and Licensing Ms. Holly S. Keck, Leg. Chairman Board Panel Anti-Nuclear Group Representing 881 West Outer Drive York (ANGRY)

Oak Ridge, Tennessee 37830 245 W. Philadelphia Street York, Pennsylvania 17404 Dr. Linda W. Little Atomic Safety and Licensing Ms. Frieda Berryhill, Chairman Board Panel Coalition for Nuclear Power

, 5000 Hermitage Drive Plant Postponement Raleigh, North Carolina 27612 2610 Grendon Drive Wilmington, Delaware 19808 James A. Tourtellotte, Esquire Office of the Executive Legal Mr. Robert Q. Pollard Director Chesapeake Energy Alliance U.S. Nuclear Regulatory Commission 609 Montepelier Street Washington, D.C. 20555 Baltimore, Maryland 21218 Docketing and Service Section Karin W. Carter, Esquire Office of the Secretary _ Assistant Attorney General U.S. Nuclear Regulatory Co= mission 505 Executive House Washington, D.C. 20555 P.O. Box 2357 Harrisburg, Pennsylvania 17120 George F. Trowbridge, Esquire Shaw, Pittman, Potts & Trowbridge Walter W. Cohen, Esquire 1800 M Street, N.W. Consumer Advocate Washington, D.C. 20006 Department of Justice For: Licensee ,

Strawberry Square, 14th Floor Harrisburg, Pennsylvania 17127

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Dr. Chauncey Kepford Karin P. Sheldon, Esquire Enviror;= ental Coalition on Nuclear Sheldon, isr=cn, Rois=an & Weiss Power 1725 I Street, N.W., Suite 506 433 Orlando Avenue Washington, D.C. 20006 State College, Pennsylvania 16801 For: PANE Robert L. Knupp, Esquire Mr. Steven C. Sholly Assistant Solicitor 304 South Market Street County of Dauphin Mechanicsburg, Pennsylvania 17055 P.O. Box P, 407 N. Front Street Harrisburg, Pennsylvania 17108 Theodore A. Adler Widoff, Reager, Selkowit: & Adler Mr. Marvin I. Lewis 3552 Old Gettysburg Road 6504 Bradford Terrace Camp Hill, PA 17011 Philadelphia, PA 19149 For: Three Mile Island Alert, Inc.

Jordan D. Cunningham, Esquire Ellyn P. Weiss, Esquire Fox, Farr & Cunningham Sheldon, Harmon, Roiseman & Weiss 2320 North Second Street 1725 I Street, N.W., Suite 506 Harrisburg, Pennsylvania 17110 Washington, D.C. 20006 For: Newberry Twp. TM1 Steering For: Union of Concerned Scientists Committee a

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