ML19322E139

Suppl 4 Amend 40 of OL Application for Partial Transfer of Cps.Includes Amend 39 & 40,filed 780501 & 790514, Respectively

ML19322E139
Person / Time
Site:	Seabrook
Issue date:	03/14/1980
From:	PUBLIC SERVICE CO. OF NEW HAMPSHIRE
To:
Shared Package
ML19322E137	List: ML19322E136 ML19322E138 ML19322E139 ML19322E140
References
NUDOCS 8003200238
Download: ML19322E139 (9)

Text

s 5/1/78 (Amend. No. 39)

I. GENERAL INFORMATION AS TO APPLICANTS A. Background Seabrook Station Units No. 1 and No. 2 are being constructed as part of the regional construction program for generation faci-11 ties for utilities participating in the New England Power Pool and other New England utilities. The Units are being constructed pursuant to an Agreement for Joint Ownership, Construction and Operation of New Hampshire Nuclear Units, dated May 1, 1973 (the

" Joint Ownership Agreement") and will be owned in the same prc-portions by the group of participating New England utilities, each participant owning the same percentage of both Units.

The original License Application for the Construction Per-mits (filed March 30, 1973) indicated that nine participants were then firmly committed to become owners, collectively of 100% of both Units, and that thirteen other utilities were then potential additional participants which might subsequently ac-quire Ownership Shares by transfer of fractional interests from eight of the committed participantr. As noted in the License Application, there were unresolved issues, involving legislative changes and municipal authorization, which affected these addi-tional participants.

As of March 30, 1973, the nine comm.'.hted participants and their Ownership Shares were as follows:

8003200 . I 2M

5/1/78 (Amend. No. 39)

Participant Ownership Share Public Service Company of New Hampshire 50.0000%

The United Illuminating Company 20.0000 Central Maine Power Company 2.5505 The Connecticut Light and Power Company 11.9776 Fitchburg Gas and Electric Light Company .1716 Montaup Electric Company 1.9064 New Bedford Gas and Edison Light Company 1.3539 New England Power Company 8.9430 Vermont Electric Power Company, Inc. 3 0970 100.0000%

The thirteen potential additional participants were:

Applicant Ownership Share Ashburnham Municipal Light Plant .01195%

Burlington Electric Light Department .22175 Eastern Maine Electric Cooperative, Inc. .00256 Holyoke Gas and Electric Department .09946 Hudson Light and Power Department .05780 Hull Municipal Lighting Plant .01345 Marblehead Munic,ipal Ligi:t Depart-ment .05565 Middleborough Gas & Electric Department .05598 Middleton Municipal Light Department .02563 New Hampshire Electric Cooperative, Inc. 2.41542 North Attleborough Electric Depart-ment .03648 South Norwalk Electric Works .00855 Templeton Municipal Light Plant .03023 3.03491%

During the course of the construction permit proceedings, some adjustment of participations occurred: Amendment 28 to

l 5/1/78 (Amend. No. 39)  !

the License Application, dated January 17, 1975, documented the transfer by Vermont Electric Power Company, Inc. of portions of its ownership interest to two other Vermont utilities, Central Vermont Public Service Corporation and Green Mountain Power Corporation; testimony presented during the course of the hearing (Appl. Direct No. 1, post Tr. 1177) noted the pending transfer by Green Mountain Power Corporation of its interest to New England Power Company and Amendment No. 36 to the License Appli-cation, dated October, 1975, contained a copy of the Agreement to Transfer Ownership in Seabrook Units between those two com-panies. The latter transfer was actually consummated on Decem-ber 17, 1975, after the hearing record in this proceeding was closed but prior to issuance of the Initial Decision. Therefore, as of July 7, 1976, the date the Construction Permits were issued, the Ownership Shares were as follows:

Participant Ownershir Share Public Service Company of New Hampshire 50.0000%

The United Illuminating Company 20.0000 Central Maine Power Company 2.5505 Central Vermont Public Service Corporation 1.7971 The Connecticut Light and Power Company 11.9776 Fitchburg Gas & Electric Light Company 0.1716 Montaup Electric Company 1.9064 New Bedford Gas & Edison Light Company 1 3539 New England Power Company 10.1103 Vermont Electric Power Company, Inc. 0.1326 100.0000%

5/14/79

( Amend. No. 40 )

The firmly committed participants are parties to the Joint Ownership Agreement (initially filed as Appl. Ex. 1, Amend. 14, Question 3; also attached hereto as Exhibit 1) which sets out their respective rights and obligations, including the obliga-tion under Paragraph 3 thereof to make portions of their owner-ship interests available to the additional participants. Finan-

, cial information as to both the firmly committed and the additional participants was submitted as part of the License Application.

But determinations by the Commission Staff (Safety Evaluation Report, pp. 20 et seq.) and the Atomic Safety and Licensing Board (Initial Decision, pp. 23-26, 199) as to the financial qualifica-tions of applicants in the original licensing proceeding were made only with respect to the utilities firmly committed to the project.

By Amendment No. 39, as amplified by Supplement No. 1 theretc, to the License Application, the Applicants requested approval of certain partial transfers of the Construction Per-mits in recognition of certain transfers mandated by Paragraph 3 of the Joint Ownership Agreement and of certain other transfers the participants had agreed to make, such transfers being subject to the jurisdiction of certain state regulatory agencies as well as the Commission. Amendment No. 39 culminated in the issuance of Amendments Nos. 1 and 2 to the Construction Permits authorizing certain transfers of ownership' interests which would result in the participants' and their- Ownership Shares being as follows:

4-

3/14/80 (Supp. No. 4 to '

Amend. No. 40)

Participant Ownership Share Public Service Company of New Hampshire 50.00000%

The United Illuminating Company 20.00000 New England Power Company 9.95766 Central Maine Power Company 2.54178 Central Vermont Public Service Corporation 1.59096 Fitchburg Gas and Electric Light Company 0.60432 Montaup Electric Company 2.93531 New Bedford Gas and Edison Light Company 4.37370 Town of Hudson, Massachusetts Light and Power Department 0.05780 Vermont Electric Cooperative, Inc. 0.41259 Bangor Hydro-Electric Company 0.37249 Taunton Municipal Lighting Plant Commission 0.10034 Massachusetts Municipal Wholesale Electric Company 5.59249 Mhi e .' Public. Service Company 1.46056 100.00000%

The foregoing reflected, among other things, transfers from The Connecticut Light and Power Company (CL&P) to seven other participants, including Montaup, New Bedford and Fitch-burg. L'.1 of the transfers authorized by Amendments Nos. 1 and 2 have been consummated ns of the date hereof, except the l transfers by CL&P of 0.43332% to Fitchburg, 1.03542% to Montaup and 3.02443% to New Bedford. As to those three transfers, pro-ceedings have been pending before the Massachusetts Department of Public Utilities since October, 1978. On December 26, 1979, New Bedford announced that it would not be extending its Sales Agreement with CL&P relating to the 3.02443% interest, which Sales Agreement subsequently expired by its terms on i

December 31, 1979 Therefore, even if the transfers to Fiten-burg and Montaup are ultimately consummated, CL&P will continue 3/14/80 (Supp. No. 4 to Amend. No. 40) to be a participant owning 3.02443%, unless some further transfer is hereafter approved by the Commission and any other regulatory agencies having jurisdiction.

B. Proposed Transfers On March 3, 1979, the Board of Directors of Pablic Service Company of New Hampshire ("PSCo") directed the officers of PSCo to effect a reduction in PSCo's Ownership Share of the Seabrook Units. Promptly thereafter, a proposal was made to the other joint owners of the project to amend the Joint Ownership Agree-ment to provide that the Ownership Shares of PSCo and the other participants taking part in the adjustment be determined on the basis of the several amounts advanced by them rather than a stated fixed percentage as presently provided in the Joint Ownership Agreement, such reallocation of ownership interests to be gradually effected by the assumption of a greater share of ongoing construc-tion costs by certain participants and a corresponding decrease in the contributions by PSCo. As a result of the subsequent negoti-ations, an initial agreement was reached (in the form of the Seventh Amendment, dated as of April 18, 1979, to the Joint Ownership Agreement ) which provided for reallocation of a 22%

Ownership Share of the Seabrook Units. However, the owner-ship modifications contemplated by the Seventh Amendment were subsequently revised because MMWEC was unable to obtain commit-ments from its constituent members for the full amount initially subscribed for and because CV and GMPC determined they could not go forward because of conditions imposed by the Vermont Public ,

Service Board. Therefore, a Tenth Aniendment to the Joint Owner-l

[

3/14/80 (Supp. No. 4 to Amend. No. 40) ship Agreement (in the form heretofore filed as part of Supplement No. 3 to Amendment No. 40) was entered into, which provides for a reallocation between PSCo and the other partici-pants, on substantially the same basis as set forth in the Seventh Amendment, of the following interests:

Additional Licensee Ownership Share Massachusetts Municipal Wholesale Electric Company 6.00091%

New Bedford Gas and Edison Light Company 2.17390 Bangor Hydro-Electric Company 1.80142 Montaup Electric Company 1.00000

. Central Maine Power Company 1.00000 Taunton Municipal Lighting Plant Commission 0.13065 Town of Hudson, Massachusetts Light and Power Department 0.01957 12.12645%

The Adjustment Period relating to such adjustments is to become effective as soon as requisite regulatory approvals have been obtained.

The Tenth Amendment also provides for other transferees to assume increased Ownership Shares on the same terms and con-ditions. On October 11, 1979 PSCo reoffered to other utilities the remaining 10% interest which it desired to divest on the terms contained in the Tenth Amendment. The following utilities have accepted that offer:

Transferee Ownership Share New Hampshire Electric Coopera-tive, Inc. 2.17391%

Fitchburg Gas and Electric Light Company 0.26087 Taunton Municipal Lighting Plant Commission 0.20380

_7_

, 3/14/80-(Supp. No. 4'to i

Amend. No. 40)

Proceedings before state regulatory agencies in Massachu-setts and Hew Hampshire to obtain approval of the foregoing 4 reallocations were initiated-and the necessary approval was received from the New Hampshire Public Utilities Commission on

]

4 December 31, 1979 The Adjustment Period as to each such ad-justment will commence upon receipt of the remaining requisite regulatory approvals, including Commission approval of the i

financial qualifications of the allottees.

j On April 30, 1979, The United Illuminating company (UI)

executed contracts with Central Maine Power Company and Montaup Electric Company to sell a portion of its Ownership Share to each of those participants as follcws

j Transferee Ownership Share 1

, Central Maine Power Company 2.50000f, Montaup Electric Company 1.06469 Copies of the sales contracts are included with the financial information with respect'to such transferees found in the suc--

ceeding sections of this material. These transfers are subject to regulatory approval by state regulatory agencies in Connecti-cut, Massachusetts and New Hampshire as well as to Commission approval of the financial _ qualifications of the,transferees..

Current financial information with respect to each of the'

~

above allottees and transferees, and reflecting such increased

- particioations,;is. found_ in the succeeding sections of this material.

After_ consummation of the reallocations presently provided

'the Owner-

~

' foriin the Tenth Amendment and the transfers by U" ship Share of each participant in Seabrook will beJas follows:

3/14/80 (Supp. No. 4 to Amend. No. 40)

Participant Ownership Share Public Service Company of New Hampshire 35.234975 The United Illuminating Company 16.43531 Central Maine Power Company 6.04178 4

Fitchburg Gas and Electric Light Company 0.86519 Montaup Electric Company 5:00000 New England Power Company 9.95766 Central Vermont Public Service Corporation 1.59096 New Bedford Oas & Edison Light Company 3.52317 The Connecticut Light and Power Company 3 02443 New Hampshire Electric Coopera-tive, Inc. 2.17391 Town of Hudson, Massachusetts Light and Power Department 0.07737 Vermont Electric Cooperative, Inc. 0.41259 Massachusetts Municioal Wholesale

~

Electric Company 11.59340 Maine Public Service Company 1.46056 Bangor Hydro-Electric Company 2.17391 Taunton Municipal Lighting Plant Commission 0.43479 100.00000%

4