ML19322C654
| ML19322C654 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 09/06/1979 |
| From: | NRC COMMISSION (OCM) |
| To: | NRC COMMISSION (OCM) |
| References | |
| TASK-TF, TASK-TMR NUDOCS 8001180272 | |
| Download: ML19322C654 (2) | |
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UNITED STATES
[ g s _. g*(,c,j NUCLEAR REGULATORY COMMISSION 5;.k' Td/'N*/' p C
WASHINGTON, D. C. 20555 8
Summary of Interview With John G. Graham V.P. and Treasurer, GPU 9/6/79 At Office of J. Liberman Treasurer's functions include cash management and long range financial planning.
John also performs some rate case work.
Met Ed was the strongest financially of the GPU companies so wanted to use Met Ed to get back into commercial paper market.
Reason for issuing commercial paper was to secure small amount of borrowing at about h% less than other short term alternatives.
TMI-2 was bondable when the plant was affixed to the realty -- not when declared to be in commercial operation. About 5 years ago, first mortgage bond indenture was amended to allow bonding of CWIP and was in fact bonded.
If TMI-2 had not been reflected in base rates but had been in commercial oper-ation, interest coverage would have been decreased.
Pa. does not allow CWIP in rate base.
A corporate challenge is to attempt to match completion of a unit with accpetance into rate base.
Jim Liberman noted that GPU "would have had some nervousness about waiting until March to shift off AFC."
In October / November 1978, Met Ed applied for Commercial Paper rating.
All Pa.
utilities generally are one notch lower than other utilities attributable to Pa.
PUC policies. Met Ed received A-1 rating from S&P, their top rating. Moody's gave a P-2, one off the top. The dealer (Goldman Sachs?) was going to handle the paper with one rating so didn't plan to use Moody's rating.
Paper was ready tc be issuic March 28, 1979 and sale was cancelled.
No one in financial community ever mentioned cncern over start-up problems of TMI-2.
The 1978 test par was important only for Penelec which owned only 25% of TMI-2.
Pa. PUC is conceined about plant being completed during the test year.
If TMI-2 not completed in 1978, there was some potential to lose the case.
No doubt, it wouldbeaf/,ight.
TMI-l went into service after end of test year.
"The people who were involved saw completion of both TMI units as a significant milestone in company's history serving to reduce exposure to oil."
John heard people 'say in 1978 TIM-2 done, in 1979 work on Forked River.'"
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It is nice for annual report to be able to say plant is done.
John w'll supply:
1.
$ amount of TMI-2 bonded as of Dec. 28,15'S and how much additional became available for bonding as a result of commercial operation declaration.
2.
Application for commercial paper ratings.
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