ML19329E630

Advises That Review Completed Re Amend 28 to CP Application Providing Update to Util Third Quarter Rept.Addl Info & Analysis Required for Fourth Quarter Rept Outlined

ML19329E630
Person / Time
Site:	Midland
Issue date:	01/16/1975
From:	Moore V Office of Nuclear Reactor Regulation
To:	Howell S CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
References
NUDOCS 8006160411
Download: ML19329E630 (3)

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Docket Hos. 50-3297 C

THis DOCUMENT CONTAlHS and 50-330 P00R QUAUTY PAGES Mr. S. H. Howell Vice President c.

Consumers Power Company W

212 West Michigan Avenue

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Jackson, Michigan 44201 I

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Dear Mr. Howell:

We have reviewed Amendment 28 to your application for construction pemits and operating licenses for Units 1 and 2 of your Midland Plant. This amend-ment consists of a third quarter 1974 update of financial infomation and construction projections required by A. Giambusso's letter dated September 13, 1974.

1.5 In light of recent and pending developments which are significant to the

> :j financial posture of Consumers Power Company, we request that your.next.. T quarterly report, which will ~ include fiscal results of the fourth quarter.:y;q" ',

r and calendar year 1974, include the following information and analysis:

1.

Copies of the Michigan Public Service Commission (MPSC) rate order and opinion regarding your $72.2 million requested rate increase.

a 2.- Copies of the MPSC hearing examiner's decision and -Mation for e

a $67.0 million rate increase in the above case.

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Provide an assessment of'the effect of th'is rate order on'the verall C N I-

-.. financial condition of the Consumers Pomer Company and on your ability-;

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. ;, ', _ _to finance continued construction of Midland 1-and 2 and the balance off:5

l w i your construction program. Also provide an assessment of the impact of. MV any forthcoming gas rate increase on the overall financial condition cmc

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land on the ability to. finance construction.

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Quantify the assumptions made in your Amendent 28, regarding the

,, favorable effects of the rate increase and the operation of the Palisades

' plant on your ability to issue $50 million of first mortgage bonds in the second No. 28) quarter of 1975 (ref. p.3, supplemental infomation, Amendment

. Specifically, what is the net projected effect by month of j

the rate increase and of Palisades' operation on net income, net earnings

- and on interest coverage, such that the bonds could be issued.

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Docket Nos. 50-329 and 50-330 i

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Mr. S. H. Howell Vice President Censumers Power Company 212 West Michigan Avenue Jackson, Michigan 44201 1

Dear Mr. Howell:

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We have reviewed Amendment 28 to your application for construction pennits' and operating licenses for Units 1 and 2 of your Midland Plant. This amend -

ment consists of a third quarter 1974 update of financial information and construction projections required by A. Giambusso's letter dated September 13,'

1974.

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I In light of recent and pending developments which are significant to the financial posture of Consumers Power Company, we request that.your next quarterly report, which will include fiscal results of the fourth quarter and calendar year 1974, include the following information and analysis:

l 1.

Copies of the Michigan Public Service Comission (MPSC) rate order and i

opinion regarding your $72.2 million requested rate increase.

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~ Copies of the MPSC hearing examiner's decision and recommendation for 7 fu, e

' a $67.0 million rate increase in the above case..

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Provide an assessment of the effect of this rate order on the overall '

a financial condition of the Consumers Power Company and on your ability to finance continued construction of Midland 1 and 2 and the balance of your construction program. Also provide an assessment of the impact of any forthcoming gas rate increase on the overall financial condition and on the ability to finance construction.

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Quantify the assumptions made in your Amendment 28, regarding

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favorable effects of the rate increase and the operation of the Palisades _

plant on your ability to issue $50 millica of first mortgage bonds in the A 1.:, No.- 28) quarter of 1975 (ref.; p.3, supplemental information, Amendment %

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=+r; what is the net projected effecgot the rate

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that the bonds could be issued.

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i JAN 161975 Mr. S. H. Howell,

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In Amendment 28, (ref. p.3, supplemental information), you indicated that the successful procurement of short-term bank loans was an assumption made in Consumers' financing projections for its construction program.

What is the amount of Consumers' lines of credit and the currently unused portion of these lines? Name the banks extending these lines and indicate the relative percentage of each to the total of the lines of credit.

Which of these banks does Consumers expect to utilize first and indicate the anticipated amount of each loan.

Please provide three (3) signed originals and forty (40) confonned copies of the above within thirty (30) days of the issuance of the Consumers Power Company 1974 annual report to stockholders or the rate order, shichever is later..

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origiasi signed by

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Voss A. Moort Voss A. Moore, Assistant Director for Light Water Reactors Group 2 Directorate of Licensing cc: Harold F. Reis, Esquire Newman, Reis, Axelrad DISTRIBUTION 3_

1025 Connecticut Avenue, N.W.

Docket File s q

Washington, D. C. 20036 Reading File AGiambusso-

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Honorable William H. Ward, RBoyd

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Assistant Attorney General RP ads Topeka, Kansas 66601 RP Br. Chiefs Howard J. Vogel, Esquire TR ads Knittle and Vogel TR Br. Chiefs 814 Flour Exchange Building AHMeltz 310 Fourth Avenue South JCPetersen Minneapolis, Minnesota.55415 DJSkovholt

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