ML19319D219
| ML19319D219 | |
| Person / Time | |
|---|---|
| Site: | Crystal River  |
| Issue date: | 06/03/1975 |
| From: | Skovholt D Office of Nuclear Reactor Regulation |
| To: | Moore V Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8003130834 | |
| Download: ML19319D219 (11) | |
Text
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Docket No. 50-302 4-4 Wf~
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V.A. Moore, Assistant. ~ irector for-Light Water Peactors Group 2 ',
D Division of Reactor Licensing -
FLORIDA POWER CORPORATION - CRYSTAL RI'IER UNIT 3f FROPOSED JOINT OWNERSliIP :
in response to your TAR of May 19, 1975, we have reviewed the applicant's preliminary Participation Agreement which would form the basis for the proposed joint cunership of Crystal River Unit 3 by Florida Power Corpo-ration and approximately 16' additional utilities.
Additional fi,macial information is needed from the applican : 00th to etalate tM Finar.cial qualificaticas of the new participant; to purchase in umiiviM 10! cuner-shiu-interest in the unit, and to evaluate the financhi qualif!cetim of Florida Pmer Corporation and the 'nemparticipants to operate the unit ano to parranantly shutdown the facility and maintain it in a safe shut-dcwn condition, sr.ould that become necesary.
It is our c;:infan tnat financiai qualifications rindings wil! na -r.c.:ir:d both for th2 C? re, r. ant admittis 22 edditicnal car:1c";ints as Oc-holders of the permit.and for an sex wppiant acarassino tne CL issues.
Depending ca the review schedule ta be de nlooed'for the CP menda nt., it may be expeditious for the' applicants to submit tha CP infomatien cricr to submittine the OL information.
In addition, it is desiraMe char, w cutata the most up-to-data ccs estintes' and financial data for t.oth the CF and the OL reviews. Accordingly, we have separated the requested.in-formtion into one list related to the CP amendment and a second list related to the OL, both of which asa attached.. In each of the two cases,
. the complete responses should be submitted to..us five weeks prior to the date' that a finding on financialf; qualifications is. required.-
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Enclosures:
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YAN,US 1
- CP - pag 2 1 REQUEST FOR ADDITI0flAL FIllAfiCIAL IrlFORf4ATI0fi -
C0ftSTRUCTI0li PER4IT CRYSTAL RIVER UNIT 3 DOCKET NO.
50-302
.l.
Indicate the total estimated cost to complete'the design and con-struction of Crystal River Unit 3 including nuclear production plant costs; transmission, distribution and general plant costs; and the nuclear fuel inventory cost for the first core.
2.
If nuclear fuel for the facility is to be acquired by lease or other arrangement than purchase, submit copies of the lease or documents relating to the "other arrangement".
3.
Provide the earliest and latest estimated dates for completion of construction of the unit.
4.
What is the aggregate dollar amount that will be payable by the additional participants at the date of closing the sale? What is the total estimated collar amou:1t that the additional participants will pay to Florida power Corporation after closing the sale and through completion of the unit?
If the total estimated cost to comp'lete the unit (per item 1 above) exceeds the total dollar contribution to be made by the additional participants, provide a detailed explanation of the source (s) of funds to 'inance the difference.
Indicate the nature and amount of the additional source (s), if any, and indicate the assumptions upon which the ability to raise such funds is based.
5.
Provide a list of the additional participants.
Indicate their re-spective ownership shares in the facility and the dollar contribution ta be made by each at closing of the sale. Also indicate the estimated additional total dollar contribution to be made by each participant'through the completion of the unit.
6.
For each municipal and cooperative electric system applicant, iden-tify the sources upon which the applicant plans to rely for the funds necessary to pay the total cost of its ownership share in the subject facility and the amount to be obtained from each source. The summation of these sources should equal the total contribution of each applicant through:the year of completion of Crystal River Unit 3.
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-1 CP - Pag 2 2
-7. -Provide copies of excerpts from state statutes on which each municipal and cooperative electric system is relying as authority to issue revenue bonds, general obligation bonds, or other forms of indebtedness and to take other actions necessary to acquire ownership shares in the subject facility.
Also, submit copies of municipal ordinances, resolutions, regulations, or documents of a similar nature which permit each of the municipal and ccoperative electric system applicants to use public or cooperative funds for acquiring ownership shares.
8.
Is each additional 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 construction costs, and its share of oper-
.ating cost subsequent to the completion of the unit.
9.
Explain the procedure to be used by Florida Power Corporation for billing the additional participants for construction progress pay-ments subsequent to closing.
This may be answered by reference to pertinent portions of an agreement between the parties that is sub-mitted in support of the application.
10.
Provide copics of the final " Participation Agreement" in:luding all exhibits referred to therein, none of which vere attached to the preliminary submission, orovide copies of any other final documents of conveyance of the ownership interest (referenced in the preliminary Participation Agreement, Section 1.b. ).
In addition, the Commission will require executed copies of the above agreements subsecuent to the closing of the sale.
11.
Provide the following for each municipal and cooperative applicant:
(a) Copies of the most recent annual financial statements.
Continue to submit copies of the annual financial statements for each year thereafter as required bv 10 CFR 50.71(b).
(b)-Copies of tt.3 most recent interim financial statements.
12.
Provide the following for Florida Power Corporation:
(a) Copies of the 1974 Annual Report to Stockholders and copies of the prospectus for the' company's most recent security issue.
Pro-vide copiet of the preliminary prospectus for any pending security issue.
Continue to submit copies of the Annual Report for each year thereafter as required by 10 CFR 50.71(b).
(b) Copies of the 1975 lst quarter (and 2nd quarter, when available) income and retained earnings statements and balance sheet.
Provide the same statements for the most recent 12 months. period. Also pro-vide copies of similar statements for the corresponding periods ended in the previous year.
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CP - Page 3 13.
Provide the following for any additional applicant that is an in-vestor-owned utility (other than Florida Power Corporation):
(a)
- copies of-the 1974 annual report with financial statements (b) copies of income and retained earnings statements for the most re-
. cent twelve months' period and balance sheet dated as of the end of
.the same period.
Copies of similar statements for the corresponding twelve months' period ended in the previous year should also be sub-mitted; (c) prospectus for the most recent security issue; (d) most recent Officer's Certificate-or.at Earnings Certificate prepared in connection with the issuance f mortgage bonds or debentures and i
showing interest coverage and debt ratio calculations pursuant to the applicable indenture; (e) calculations of interest coverage for the most recent twelve months' period using the definitions of net earnings and annual interest requirements (on debt presently out-standing) set forth in the mortgage' bond indenture.
Assuming a range of. interest c0'sts considered realistic, state the additional amount of first mortgage bonds which could be issued based on net earnings as defined by the indenture for the most recent twelve months' period; (f) the attached schedule titled, " Sources of Funds for System-Wide Construction Expenditure s During Period of Construc-tien of Subject Nuclear powar Plant,"
ccmpleted through the earliest year in which the facility is expected to be completed.
Provide a detailed explanation of the assumptions upcn which the Sources of Funds Statement is based.
4 O
s 9
"ATTAClHENT F0il CP ITDi I!O.13" Applicant; Nucicar PLmt:
Sourcea of Funds for Syst<Im-Wide Con-truction Expentlituren During Period of Construction of Subject Nuclear l'ower Plant (millions of doll.irc.)
Construction Years of Subject Nuclear Power Plant'
- Security issues and 19 19 19 19 19 19 19 19 19 other funds Common stock Pr'eferred stock
. Long-term debt, i
Notes payablo
' Contributions from parent-nct " '
, Other fundo Total Internal funis' Net income Less:
preferred dividends common dividends Retained earnings
.. Deferred taxes Invest.tnx cred.-deferred Depreciation and amort.
1 Less: AFDC Total TOTAL FtJNDS Constructi6n expendituros*
Nuclear power plants
's Othe r Y,-
Tota 1'const. "exp's.
, $_ m, _, $
m._
Subject nbclear plant
__, S
,Sm _ __ _ $,_'_ $_ __ _
m, tExclualvo of AFDC,(allowance for fundo used during constructihn) 6
GL - Paga 1 REQUEST FOR ADDITIONAL FINANCIAL INFORMATION -
OPERATING LICENSE CRYSTAL RIVER UNIT 3 DOCKET NO. 50-302 1.
Indicate the estimated. annual costs by year to operate the subject facility for the first five years of commercial operation. The types of costs included in the estimate should be indicated and should in-clude (but not necessarily limited to) operation and maintenance expenses with fuel costs shown separately, depreciation, taxes, and required return on investment.
(Attached is a form which should be used for each year of the five-year period.)
Indicate the projected plant capacity factor for each year.
Indicate if Florida Power Corporation (FPC) and the additional par-ticipants expect to be able to sell power produced by the subject facility at rates which will cover all costs of production plus a reasonable return on investment.
Indicate the unit Drice per KWH experienced on FPC's system-wide sales of electric power to all cus-tomers for the most recent 12 montns' period.
2.
Indicate the estimated costs of permanently shutting down tne facility, a listing of what is included in such costs, the assumptions made in estimating the costs, the type of shutdown contemplated, and the source of funds to cover these costs.
3.
Provide an estimate of the annual cost to maintain the shutdown.fac-11ity in a safe condition.
Indicate what is included in the estimate, assumptions made in estimating the costs, and the source of funds to
~ cover these costs.
4.
Provide a statement indicating the. additional participants' ccmmitment to provide their respective shares of all operating expenses for Crystal River 3 regardless of the level of power availability from the unit, and to provide their respective shares of expenses for permanent shut-down of the unit and maintenance in a safe condition should that beccme necessary.. Reference pertinent provisions of the Participation Agree-ment or other-agreement between the parties which affirm this ccmmitment.
Provide copies of such agreement (s) if not done so previously.
5.
Indicate the sources of funds to cover expenses in item 4 above. What assurances do the additional participants have that they will be able to generate revenues sufficient to cover their respective shares of Crystal River Unit 3 operating expenses, including the possibility that such expenses will escalate?
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OL - Page E 6.
Explain the' procedure to be used by Florida Power Corporation for billing the additional participants for their respective shares of the total monthly operating costs of the unit. This may be answered by reference to pertinent portions of an agreement between the parties that is submitted in support of the application.
Indicate differences, if any, between each participant's ownership percentage in the unit and its entitlement percentuge in the elec-trical capacity and output of the plant.
If there are such differences, what is the.effect on the applicant's percentage responsibility in the operating expenses of the unit?
7..
Provide the following for Florida Power Corporation:
a.
Copies of the most recent interim financial statements and pro-spectus if they are more current than those submitted in response to the CP request.
b.
Describe the nature and amount of the company's most recent rate relief action (s) and its anticipated effect on earnings.
Provide copies of the rate order and opinion.
In addition, indicate the
. nature and amount of any pending rate relief action (s). Use the attached form to provide this information.
c.
Complete the attached form entitled " Financial Analysis" for the years ended December 31, 1974 and December 31, 1973.
8.
Provide copies of the most recent interim financial statements for each additional participant if they are more current than those sub-mitted in response to the CP request.
E
.n 5
"ATTACsMENT FOR'0L ITEM NO.1" -
ATTACIDENT ESTIMATED ANNUAL COST OF OPERATING NUCLEAR GENEPATING UNIT:
FOR THE CALENDAR YEAR 19 (thousands of dollars)
Operation and caintenance execns'es Nuclear cotter generation Nuclear fuel expense (plant factor
%)...............
Other operating expenses...................................
Ma in t e nan c e exp en s e s.......................................
Total nuclear power generation.................
Transmission expenses.......................................
Administr2 :ive and eeneral execnses Property and liability insurance...........................
Other A.&G.
expenses.......................................
Total A.6G.
expenses..................................
TOTAL 0&M EXPEN5ES....................................
o Depreciatica expense...........................................
Taxes other than ince=e taxes Property taxes...............................................
0ther........................................................
To tal taxes other than inco=e taxes...................
~
Income taxes - Federa1.....................'....................
Income taxes -
other...........................................
Deferred inco=e taxes - net....................................
Investeen t tax credit adj ustments - ne t........................
. Return (rate of return:
%)............................
TOTAL A'CiUAL COST OF OPERATION
'#ATTACFNENT FOR OL ITEM NO. 7.c."
FINANCIAL ARALYSIS 1974 1973 (dollars in millions Earnings available to common equity Average common equity Rate of return on average common equity Net income before total interest charges Total interest charges
. Times total interest charges earned Het income before total interest charges Interest on long-term debt Times long-term interest charges earned
- Gross income after taxes Total interest charges & preferred dividends Preferred stock coverage **
AFUDC Net income after preferred dividends Operating expenses (Icss depr. & total taxes)
Operating revenues Operating ratio Market price of cc=cn Book value of comr.on Market-bcok ratio Cash earnings available for common Common dividends Ratio Capitalization
( Amount & Percent)
Long-term debt Preferred stock Common equity
- Provide latest Net Earnings Certificate showing interest covarage calculated in accordance with the provisions of the mortgage and/or debenture indenture together with a copy of the indenture (s).
- 1f the Corporate Charter contains a preferred stock coverage requirement, provide that portion which shows how such coverage is to be calculated.
i "AT"*CHMENT FOR OL ITEM NO. 7.b."
RATE DEVELOPMENTS Electric Gas Steam Granted
- Annual amount - test year basis (000's)
Percent increase Effective date Rate of return on rate base authorized Rate of return on ccmmon equity authorized Revenue Effect (000's)
Amount received in year granted Amount received in subsequent year Pending Requests Amount (000's)
Percent increase Date filed Date by which decision must be issued Rate of return on rate base requested Rate of return on common equity requested
- Provide copy of latest rate order S
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-