ML19326D218
| ML19326D218 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 06/27/1974 |
| From: | Howell S CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.) |
| To: | Anthony Giambusso US ATOMIC ENERGY COMMISSION (AEC) |
| References | |
| NUDOCS 8006090642 | |
| Download: ML19326D218 (6) | |
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General Offices: 212 West M*cNgan Avenue.. Jackson, MacNgan 49201 June 27, 1974 6 c ' _,.,
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Docket Nos. 50-329, E
50-330 and 50-255
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-j~;.; i Mr. Angelo Giambusso 6lA' ' 27 Syl, h~'-
Deputy Director for Recctor Projects
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t'37 Directorate of Licensing U. S. Atomic Energy Co=:sission
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Dear Mr. Gicmbusso:
On June 13, 1974, Consumers Power Company responded to your May 0.c; 4?h requent fer *.fc -.,,tien en the C.qs.r.y's it:.cncial cona1T,1cn ana nnsncing plans. my leT,T,er or aune 14, 19i4, which 1 received en June 17, you forwarded two additional questions en this subject. I am enclosing two copies of our response to this supple-mental request.
On June 24, 1974, a member of my staff received a call from your Mr. McKay indicating that our responses to your requests for financial information should be submitted in the form of cmand-ments to the license applicaticus for both the Midland and Palisades facilities. Accordingly, we vill resubmit the information in amend-ment fors in the near future, including any changes in the responses that may be necessary to bring them up to date.
Yours very truly, m
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SHH/pb CC: Harold F. Reis, Esq 4
g.,Mk' Hon. Williem H. Uard Howard J. Vogle, Esq j x.r
's r e Irving LiPe, Esq
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Myron M. Cherry, Esq
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Question No. 1 Identify and state the amount of each major system-vide source of con-struction runds which will be realized during the twelve months ' period beginning June 1,1974 assuming fuel costs and interest rates remain the same for the following cases:
(1) Palisades is not returned to service until December 1, 1974 and con-struction at Midland remains on schedule.
(2) Palisades is not returned to service until December 1,1974 and con-struction at Midland is delayed 6 months.
Response
(1) Internal Sources Internal sources are made up principally of retained earnings, de-preciation, deferre'd taxes and several miscellaneous items. It is currently estimated that net internally generated funds for the period June 1, 1974 through May 31, 1975 vill be $118 million if Palisades starts operation on December 1, 1974. A delay of six months in Midland construction vill not materially affect this esti-mated amount of internally generated funds.
(2) External Sources The Canpany plans to raise funds through extemal sources for the twelve months beginning June 1,1974 as outlined below:
1.
A $50 million 7-year tem loan fran First National City Bank in New York was completed on June 20, 1974.
ii. Approximately $50 million of convertible preference stock in the summer of lgr(4.
1 111. Approximately $100 million of first mortgage bonds in late sum-mer of 1974.
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,3 iv. Approximately $40 million of straight preference ntock in the fall of 1974.
A $35 million nuclear fuel lease is currently being negotiated.
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Closing is expected in the stunner of 1974.
vi. Approximately $11 million vill be taken down frcm prior issues of pollution control revenue bonds. The trustee holds the funds from the sale of pollution control revenue bonds until ccustruc-tion on the associated projects is perfonned.
This amounts to about $286 million to be raised through external sources.
In addition to the extemal sources outlined above, the Company has access to significant amounts of bank credit as indicated in its June 13, 1974 response to the AEC Staff's May 29, 1974 request for financial information.
Assuming that a construction delay at Midland includes only the stoppage of manual labor and subcontract work while engineering, supervision, material procurement and receiving continue, the esti-mated reduction in projected construction expenditures would be ap-proximately $15 million. This reducticn in projected construction expenditures would reduce the need for externally-generated funds' but would not be expected to change the financing program outlined above except to reduce short-term borrowings.
In the foregoing response, and in the Company's response to Ques-tion No.1 of the AEC Staff's May 29, IcITA request, the Company has
3 outlined its present plans for raising capital for expension from external sources over the next year. However, given the present uncertainties in the securities markets and the difficulties now being experienced by utilities in their attempts to raise capital, one should reco6nize that the Company's financing plans are subject to change, even over the relatively short period in question. Should this occur in any material way, the Ccznpany intends to supplement its responses to advise the AEC Staff of any such changes.
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O Question No. 2 Please include on your balance sheet or as a footnote any extraordinary outstanding or anticipated claims against Consumers Power Company.
Response
There are no extraordinary outstanding or anticipated claims against Consumers Power Company other than those mentioned in the Notes to Financial Statements sutmitted as part of Exhibit A to the Company's June 13, 1974 response to the AEC Staff's May 29, 1974 request for fi-nancial infomation.
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AEC DTST5.IEL' IO?T 70R PAST 50 DCCTET MTERIAL
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(TDiPORARY FCFli)
C0tiTROL NO:
59'3 FILE: m/60 FRCti:
DATE OF LOC DATE REC'D LTR TWX RPT CTHER Consumers Power Company Jackson, Michigan 49201 6-27-74 7-1-74 X
S. H. Ucueil TO:
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A. Giambusso 1 signed SENT LCCAL T';?
CI \\SS U ; CLASS PROP INFO INPUT NO CYS REC'D DOCKET NO:
XXX 1
330 50-255 DESCRIPTION:
ENCLOSL?,ES :
Ltr re our 6-13-74 ltr, trans the following:
Response to our 6-12-74 request for info e.
the Co.npany's financial condition and finan -
ing plans.
NOTE: Oric ev file in Docket No. 50-255 ACKNOWLEDGED DO NOT REMOVE PLANT NAME:
Midland Units 1 & 2
( 2 cys rce'd )
Palicades FOR AC"'IC: /I?.70?2'ATICN 7-1-74 GC BUTLER (L) v6CHWENCER (L)
ZIEMANN (L)
REGAN (E)
W/ CYS W/ 9 CYS W/ CYS W/ CYS CLARK (L)
STOLZ (L)
DICKER (E)
W/ CYS W/ CYS W/ CYS W/ CYS r.T.
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W/ CYS W/ CYS W/ CYS W/ CYS KNIEL (L)
/ PURPLE (L)
YCUNGBLOOD (E)
W/ CYS W/ 9 CYS W/ CYS W/ CYS INTER!'AL DISTRIBUTION 3
Cf(.,JklE TECH REVIEW DE ; TON LIC ASST A/T IND
/ AEC PDR yUENDRIE GRDIES DIGGS (L)
BRAITMAN OGC SCHROEDER GAMMILL GEARIF (L)
SALTZMAN MUNTZING/ STAFF MACCARY KASTNER
/GOULBOUPJ;E (L)
B. HURT v('ASE KNIGHT BALLARD KREUTZER (E)
, GIAMBUSSO PAWLICKI SPANGLER LEE (L)
PLatNS t/hoYD SHA0 MAICRET (L)
IICDONALD MOORE (L)(LUR-2)
WTELLO ENVIRO REED (E)
CHAPMAN DEYOUNG (L)(LWR-1)
HOUSTON MULLER SERVICE (L)
WUBE Cg SKOVHOLT (L) vNOVAK DICKER
/SHEPPARD (L)
E. COUPE A OLLER (L)
ROSS KNIGHTON SLATER (E)
/ MINNERS P. COLLINS IPPOLITO YOUNGBLOOD SMITH (L)
D. THOMPSON (2)
DENISE TEDESCO REGAN TEETS (L)
KLECKER JtEG OPR LONG PROJECT MGR WILLIAMS (E)
EISENHUT YFILE 6 REGION (3)
LAINAS WILSON (L)
W ARGA MORRIS BENAROYA HARLESS
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STEELE VOLLMER V*REID (OR3) (R EXTERNAL DISTRIEUTION C\\f7
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