ML19319D513
| ML19319D513 | |
| Person / Time | |
|---|---|
| Site: | Crystal River  |
| Issue date: | 06/15/1977 |
| From: | Saltzman J Office of Nuclear Reactor Regulation |
| To: | Papolos F FLORIDA POWER CORP. |
| References | |
| NUDOCS 8003170639 | |
| Download: ML19319D513 (3) | |
Text
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UNITED STATES f
NUct. EAR REGULATORY COMMISSION j
WASHINGTON, D. C. 20"5 s %.. :. / !
June 15, 1977 Docket No. 50-302 Florida Power Corporation ATTN:
Mr. F. A. Papolos Building B-1-A P. O. Box Box 14042 St. Petersburg, FL 33733 Gentlemea:
The Commissicr. is completing the implementation of certain provisions of the 1975 amen rer.:s to the Price-Anderson Act (Public Law 94-197), so that the new retrospective premium system can become effective on August 1, 1977.
The Commission published in the Federal Register on January 3, 1977 (42 F.R. 46) its inuntion to establish certain requirements relating to guaranteeing retrospective premiums to assure that following r neclear incident deferred ra:cos;e::ive premiums will be paid by lic and that government funds will not have to be used to cover defat.-
in such payments.
These guarantee requirements may be met by providing any one or a combina:':., of alterna:ive methods in the amount of $10 million for each large ::e reactor a licensee operates.
These alternatives would be:
1.
Surety bonds; 2.
Letters of credit; 3.
Revolving credit / term loan arrangements; 4.
Maintenance of escrew deposits of government securities; 5.
Annual certified financial statements and cash flow projections showing either that a cash flow (i.e., cash available to a company after all operating expenses, taxes, interest charges and dividends have been paid) can be generated and would be available for payment of retrospective premiums within three (3) months after submission of the statement, or a cash reserve or a combination of cash flow and cash reserve, and 6.
Such other type of guarantee approved by the Commission.
The purpose of this letter is to learn frcm you the type of guarantee that you intend ~to provide as well as to provide some guidance concerning Alternative 5 of the guarantees (a showing of adequate cash flow).
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O Florida Power Corporation June 15, 1977 order to allow us to analyze the adequacy of the showing of cash flow, we should be provided with the following:
(1) An annual certified financial statement for the most recent reported year preceding the submission date; (2) a quarterly financial statement for the last quarter preceding the submission date; (3) a cne year internal cash flow projection accompanied by underlying assr:ticas showing that cash flow (i.e., cash available to a company after all operating expenses, taxes, interest charges, and diridends have been paid) for $10 million can be generated and wculd be available for payment of retrospective premiums within tnree renths after submission of the statement; (4) a narrative statement indicating which capital expenditures (if cry) would be curtailed to ensure that retrospective preniums up to $10 million would be available for payment.
The cash ficw :M 2cti:n should be for a one year period preferably beginning either at the ar.niversary date or if unduly burdensome at the calendar year starting closest to the anniversary date.
This projection should incl.:+
detailed creakdown of expected cash sources, e.g.,
retained ear- ;s, decreciation, deferred taxes, etc., and should be certified by Er Official of the company.
All utilities will be required to provide their.first submission of guarantees by A;;ust 1,1977.
Annual submissions thereafter should be on the anniversary date of any of the utility's indemnity agreements.
Utilities may request another date for their annual submittals.
If.more than one statenent is provided in those cases where there are multiple licensees, all such statements should utilitze the same submittal date.
As provided for in the regulations, the Commission will impose a single
$1,000 minimum indemnity fee per year upon any licensee submitting in that year a certified financial statement as the guarantee of payment of deferred premiums for its operating reactors.
If more than one statement is provided in those cases where there are multiple licensees, then a
$1,000 minimum annual indemnity fee will be imposed on each licensee submitting a statement.
We would expect, however, that in cases where there are numerous licensees, some with small percentages of ownership, that only the principal owner (s) will submit this information for the entire $10 million guarantee.
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1 Florida Power Corporation June 15, 1977 We would appreciate your indicating to us by July 1, 1977 the type of guarantee that you intend to provide us with on August 1, 1977 and what your preferred anniversary date for future submittals would be.
Please provide the contents of this letter to your co-licensees (if any).
If you have any questions concerning this letter or any other matter, you may contact Ira Dinitz, Indemnity Specialist on 301-443-6961.
Sincerely,
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3g,wm Jerome Saltzman, Chief Antitrust & Indemnty Group Nuclear Reactor Regulation
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