ML19331D559
| ML19331D559 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 08/11/1980 |
| From: | Novak T Office of Nuclear Reactor Regulation |
| To: | Arnold R METROPOLITAN EDISON CO. |
| References | |
| NUDOCS 8009030201 | |
| Download: ML19331D559 (14) | |
Text
V i c.
og UNITED STATES
[
.r.,
g NUCLEAR REGULATORY COMMISSION g
- E WASHINGTON,0. C. 20555 August 11, 1980 Docket No. 50-289 Mr. R. C. Arnold Senior Vice President Metropolitan Edison Company 100 Interpace Parkway Parsippany, New Jersey 07054
Dear Mr. Arnold:
You have responded in part to our requests for financial information of September 21 and December 6,1979, but additional information as identi-fied in the enclosure is needed to complete the previous responses and to account for subsequent developments which will cha.nge your financing plan and cost estimates.
The item numbers referenced in the enclosure correspond to our earlier requests and your responses.
In order to comply with our schedule, your response to these requests is required by August 25, 1980.
Sincerely, Qb Thomas M. Novak, Assistant Director for Operating Reactors Division of Licensing
Enclosure:
Request for Additional Information cc w/ enclosure:
See next page l
THIS DOCUMENT CONTAINS
.80090 MM P0OR QUALITY PAGES 1
'~
Metrop311 tan Edistn Company
-1 Dr. Walter H. Jordan 881 W. Outer Drive Oak Ridge, Tennessee 37830 ccw/snclosure(s):
Mr. Marvin I. Lewis Dr. Linda W. Little
/ 6504 Bradford Terrace 5000 Hermitage Drive Philadelphia, Pennsylvania 19149 Raleigh, North Carolina 27612 i
t- - --~
Walter W. Cohen, Consemer Advocate Holly S. Ieck Department of Justice Strawberry Square,14th Floor Anti-Huclear Group Represen' ting York Harrisburg, Pennsylvania 17127 245 W. Philadelphia Street York, Pennsylvania 17404 Tobert L. Knupp, Esq.
Assistant Solicitor Knupp and Andrews John t.evin, Esq.
P.O. Box P
. Pennsylvania Public Utilities Comm.
Box 3265 407 N. Front Street Harrisburg, Pennsylvania 17120 Harrisburg, Pennsylvania 17108 John E. Minnich, Chairman Jordan D. Cunningham, Esq.
Fox, Farr and Cunningham Dauphin Co. Board of Corrmissioners 2320 North 2nd Street Dauphin County Courthouse Front and Market Sts.
Harrisburg, Pennsylvania 17110 Harrisburg, Pennsylvania.17101 Theodore A. Adler, Esq.
nic Safety and Licensing Appeal Board WIDOFF REAGER SELX0 WIT 2 & ADLER
- A Post Office Box 1547
.. Nuclear Regulatory Commission Harrisburg, Pennsylvania 17105 E aington, D. C.
20555 Hs. Marjorie M. Aamodt Atemic Safety and Licensing Board Panel R.D. f5 U.S. Nuclear Regulatory Commission Coatesville, Pennsylvania 19320
' dington, D. C.
20555 Ms. Karen Sheldon Cteketing and Service Section
'h"Stree J.S. Nuclear Regulatory Commission N W' Aashington, D. C.
20555 Suite 506 Washington, D. C.
20006 Rocert Q. Pollard Earl B. Hoffman 609 Montpelier Street Dauphin County-Cornissioner 30 timore, Maryland 21218 Dauphin County Courthouse Front and Market Streets 1
Chauncey Kepford Harrisburg, Pennsylvania 17101 Judith H. Johnsrud Ms. Ellen R. Weiss, Esq.
Environmental Coalition on Nuclear Power Sheldor., Harmon & Weiss 433 Prlando Avenue 1725 I Street, N.W.
Mate College, Pennsylvania 16801
, fa n on, D. C.
20006 Ms. Frieda Berryhill, Chairman Coalition for Nuclear Power Plant Mr. Steven C. Sholly Pestponement 304 South liarket Street
- . 0 Grendon Drive Mechanicsburg, Pennsylvania 17055
'icington, Delaware 19808 Mr. Thomas Gerusky Mrs. Rhoda 0. Carr Bureau of Radiation Protection 1402 Marene Drive Department of Environmental Resources r risburg, Pennsylvania 17109 P.O. Box 2053 u
Harrisburg, Pennsylvania 17120
.~
F.etropolitan Edison Company.
Karin W. Carter, Esq.
505 Execut'ive House Mr. G. P. Miller-P. O. Box 2357 Mr. R. F. Wilson Harrisburg. Pennsylvania 17120 s
Mr. J. J. Barton Metropolitan Edison Company Honorable Mark Cohen 512 D-3 Main Capital Building P. O. Box 480 Middletown, Pennsylvania 17057 Harrisburg, Pennsylvania 17120 G. F. Troweridge, Esquire Dauphin County Office Emergency Shaw, Pi ttman, Potts & Trowbridge Preparedness 1800 M Street, N.W.
Court House, Room 7
, ashington, D. C.
20036 Front & Market Streets W
Harrisburg, Pennsylvania 17101 fir. E. G. Wallace Licensing Manaaer Department of Environmental Resources t on ATTN:
Director, Office of Radiological te pac P a
Parsippany, New Jersey 07054 Post Offi e Box 2063 Harrisburg, Pennsylvania 17105 Pernsylvania Electric Company Mr. R. W. Conrad Director, Technical Assessment Vice President, Generation Divi sion 1001 Broad Street Office of Radiation Programs Johnstown, Pennsylvania 15907 (AW-459)
U. S. Environmental Protection Agency Miss Mary V. Southard, Chairman Crystal Mall #2 Citizens for a Safe Environment Arlington, Virginia 20460 Post Office Box 405 Harrisburg, Pennsylvania 17108 Mr. Robert B. Borsum Babcock & Wilcox Government Publications Section Nuclear Power Generation Division State Library of Pennsylvania Suite 420, 7735 Old Georgetown Road Box 1601 (Education Building)
Bethesda, Faryland 20014 Harrisburg, Pennsylvania 17126
- Ivan W. Smith, Esq.
F.r. David D. Maxwell, Chairman Atemic Safety & Licensing Board Panel Board of Supervisors U.S. Nuclear Regulatory Commis sion Londonderry Township Washington, D. C.
20555 RFD#1 - Geyers Church Road fliddletown, Pennsylvania 17057 Ms. Kathy McCaughin Three Mile Island Alert, Inc.
U. S. Environmental Protection Agency 23 South 21st Street Region III Of fice Harrisburg, Pennsylvania 17104 ATTH:
EIS COORDINATOR Curtis Building (Sixth Floor)
Mr. L.
'4. Harding 6th and Walnut Streets Supervisor of Licensine Philadelpnia, Pennsylvania 19106 Metropolitan Edison Co6pany P. O. Box 480 l
Metropolitan Edison Company Middletown, Pennsylvania 17057 l
ATTN:
J. G. Herbein, Vice President l
P. O. Box 542 l
Reading, Pennsylvania 19603 Ms. Jane Lee P..D.
3; Box 3521 Etters, Pennsylvania 17319 I.
Metropolitan Edison Company '
Mr. R. J. Toole.
Manager, TMI-1 Metropolitan Edison Company Governor's Office of State Planning and Development P. O. Box 480 Middletown, PA 17057 ATTN: Coordinator, Pennsylvania State Clearinghouse Mr. W. E. Potts P. O. Box 1323 Radiological Controls Manager, TMI-1 Harrisburg, Pennsylvania 17120 Metropolitan Edison Company P. O. Box 480 Middletown, PA 17057 Allen R. Carter, Chairman Joint Legislative Committee on Energy Mr. I. R. Finfrock, Jr.
Post Office Box 142 Jersey Central Power & Light Company Suite 513 Madison Avenue at Punch Bowl Road Senate Gressette Building Morristown, New Jersey 07950 Columbia, South Carolina 29202 J. S. Lieberman, Esq.
Berlock, Israel, Lieberman 26 Broadway New York, NY 10004 Mr. J. J. Colitz Plant Engineering Manager, TMI-1 Metropolitan Edison Company P. O. Box 480 Middletown, Pennsylvania 17057 York College of Pennsylvania Country Club Road York, Pennsylvania 17405 Mr. G, K. Hovey Director, TMI-2 Metropolitan Edison Company P. O. Box 480 Middletown, PA 17057 Mr. B. E1am Manager, Plant Engineering, Unit 2 Metropolitan Edison Company P. O. Box 480 Hiddletown, PA 17057 Mr. Richard Roberts The Patr,iot 812 Market Street Harrisburg, PA. 17105 Mr. R. W. Heward Manager, Radiological Control, Unit.2 Metropolitan Edison Company P. O. Box 480 Middletown, Pennsylvania 17057 i
9 Enclosure U.S. NUCLEAR REGULATORY COMMISSION REQUEST FOR ADDITIONAL FINANCIAL INFORMATION THREE MILE ISLAND NUCLEAR STATION UNIT NO. 1 RESTART PROCEEDING-DOCKET NO. 50-289 1.
(1. ) Provide an updated detailed statement showing the estimated costs required to complete each of the plant modifications and other actions identified in the Commission's August 9,1979 order in this proceeding. Indicate amounts attributable to engineering fees, physical services (specifying description) stating the cost estimate for each modification or other action and the aggregate total cost estimate for all such actions.
Indicate for each such action whether it will be treated as an operating expense or a capital requirement. These estimates should be summarized by major feature and/or component following, where feasible, the Uniform System of Accounts prescribed by the Federal Energy Regulatory Commission, and should be sufficiently detailed so that the Commission can make a judgment as to the reasonableness 4
of the cost.
2.
(2.) Provide a detailed schedule stating the amounts and timing of projected expenditures resulting from the cost estimates in request item 1, above, showing total annual capital and total annual operating expense requirements for the modifications and other completed and projected actions for each period incurred.
3.
Provide a detailed statement of the estimated cost required to safely decontaminate and complete fuel removal from TMI-2.
Indicate amounts
attributable to engineering fees, outside contractors and consultants, physical installations, purchase of equipment, other construction expenditures or physical services (specifying description), and contingencies, showing the cost estimate for each separate item as well as the aggregate total cost estimate for all such items. These estimates should be summarized by major feature and/or component following, where feasible, the Uniform System of Accounts prescribed by the Federal Energy Regulatory Commission, and should be sufficiently detailed so that the Comission can make a judgment as to the reasonableness of the costs.
4.
Provide a detailed schedule stating the amounts and timing of projected expenditures resulting from the cost estimates in request item No. 3, above, showing total annual capital and total annual operatin'g expense requirements for the cleanup and describing completed and projected actions for each period incurred.
5.
(3.) Complete the attached form entitled, " Pro-Forma Statement of Sources and Uses of Funds," on an annual basis for each licensee and GPU, through the year of estimated completion of the cleanup activities of TMI-2. Note that this statement should encompass all necessary construction expenditures including capital expenditures relating to both TMI-l and THI-2.
Indicate the assumptions upon which the " Sources and Uses of Funds" statement is based. These assumptions should include, but are not necessarily limited to the following:
(a) rates of return on average common stock equity, (b) preferred stock dividend rates, (c) long and short-term debt
3-i interest rates, (d) market / book ratios for any projected issuances of common stock, (e) common stock dividend payout ratios, (f) target and year by year capital structure, and (g) resuitant annual SEC and indenture. coverages on interest charges and preferred dividend coverages over the period. Provide a brief explanation of the basis for each assumption.
6.
Provide a list of all necessary generating units, transmission and distribution facilities and general plant projects to be constructed during the period of cleanup of TMI-2, showing the type of facility, net capacity of each generating unit, the estimated capital expenditures for each facility during each of the years involved, and the projected in-service date of each facility.
. 7.a (4.a.) In accordance with Appendix C,Section I.B., to 10 CFR Part 50, provide a statement of the estimated annual cost by year to operate i
the subject S-ility for the first five full years of commercial operation following restart. The types of costs included in the estimates should be indicated and include (but not necessarily be limited to) operation and maintenance expense (with fuel costs shown separately), depreciation, taxes and a reasonable return on investment.
(Enclosed is a form whic'- 24oul.d be used for each year of the five year period.) ' Ar ca N: the projected plant capacity for the unit for each rear.,J30 provide similar operating cost estimates assuming plant-capacity factors pf 50 percent and 60 7
percent.
a v
n e
b.
(4.b.) State the expected source (s) of funds to cover costs in 7 a., above, also showing the financial effect to GPU and each of the licensees of a postulated restart of TMI-1. Provide a statement summarizing all Federal and State Laws which authorize said source (s) of funds with relevant excerpts of Federal and State statutes, court decisions, and Administrative Law orders.
Indicate the average unit price per kWh experienced by each licensee and by GPU on system-wide sales of electric power to all customers for the most recent 12-month period.
Indicate the portion of this average unit sales price attributable to power purchased to cover the TMI-l outage and the average unit cost of all purchased power.
8.
(5.) Provide a statement of the estimated costs of permanently shutting down the facility, a listing of what is included in such costs, the assmnptions made in estimating the costs, the type of shutdown contemplated, and the expected source (s) of funds to cover these costs.
9.
(6.) Provide an estimate of the annual cost to maintain the shutdown facility in a safe condition.
Indicate what is included in the estimate, assumptions made in estimating costs, and the evpected source (s) of fund to cover these costs.
10.
(7.) Provide copies of any recent orders and directives issued by the Pennsylvania Public Utility Commission (PaPUC) and the New Jersey I
I i
Board of Public Utilities (NJBPU) that relate to funding of costs in items 8 and 9, above. Continue to provide copies of any such future orders and directives, when issued.
11.
(8.) Provide copies of the joint participation agreements (and any amendments thereto) setting forth the procedure by which the licensees will share TMI-l modification expenses, operating expenses and, if necessary, decommissioning costs, as well as cleanup expenses for TMI-2.
12.
(9.) Provide an updated detailed itemization of all actions which are related to safe operation of the TMI-l facility that Metropolitan Edison has taken since the TMI-2 incident to reduce costs.
Include any such actions related to facilities shared with TMI-2. Also, provide an updated itemization of any additional such cost reduction actions that would be in effect when TMI-l resumes operation.
Provide a detailed analysis of the safety implications of each of the icentified present and planned cost reduction actions. Describe the criteria used to determine which cost reauction actions are related to safe operation of the TMI-1 facility.
13.
(10.) In accordance with the provisions of 10 CFR 50.54(f) and Section IV of Appendix C to 10 CFR Part 50, provide copies of the following for each licensee and for GPU:
a) All future filings relating to the finances of GPU and of each 4
of the licensees when filed, to the Securities Exchange Commission,
b) the most recent interim and all future periodic financial statements, when issued, ci the preliminary and final prospectuses for all future security issues, and d) the most recent SEC Form 10-Q and 8-K.
Continue to submit copies of the annual report for each year thereafter as required by 10 CFR 50.71(b).
14.
Provide copies of any recent and all future documentation relating to any change in the limits of credit or other terms and conditions to the licensees and GPU's Revolving Credit Agreement (RCA). File monthly reports of credit balances for each company under the RCA and its respective borrowing limit.
15.
Provide a detailed statement of all insurance coverage associated with the TMI facility, both existing and.ontemplated.
Indicate total coverages and unused coverage amounts where applicable.
4 16.
(10.b.) Describe updated aspects of each licensee's regulatory environment including, but not necessarily limited to, the folic !!ng: test year utilized (describe nature and timing), prescribed treatment of allowance for funds used during construction and of construction work in progress (indicate percentage and amount included in rate base), form of rate base [ original cost, fair value, other (describe)],
accounting for deferred income taxes and investment tax credits, i
and fuel adjustnent clauses in effect or proposed.
.- 1
r 1
17.
(10.c. ) Describe the nature and amount of each licensee's most recent rate relief action and the anticipated effect on revenues. In addition, indicate the nature, status, and amount of pending rate relief proceedings, if any. Use the attached form to provide this information. Provide copies of any financially-related hearing examiner's report and recommendation and any interim and final rate orders and opinions, including all exhibits referred to therein, which have been issued or may be issued after May 19,
- 980 for the NJBPU and after May 23, 1980 for the PaPUC. Provide timely copies of all other orders, opinions, and directives issued by the PaPUC, the NJBPU, after said dates, and FERC related to the financing of any of the licensees' or GPU's operations, including activities at TMI. Provide copies of the submitted, financially-related testimony and exhibits of the PUC staff and company in any pending rate relief request, as well as timely copies of all such future filings with any other State or Federal Utility Commission proceeding directly relating to finance.
18.
(10.d. ) Complete the enclosed form entitled
" Financial Statistics,"
for the calendar years 1979, 1978, 1977, and for the most recent 12-month period.
9
e U.S. NUCLEAR REGULATORY C0mi!SSION THREE MILE ISLAND NUCLEAR STATION, UNIT NO.1 RESTART PROCEEDING - 00CKET NO. 50-299 ATTACHMENT FOR ITEM No. S STATEMENT OF PRO FORMA SOURCES AND USES OF FUNDS FOR PLANT M00!FICATIONS, CLEANUP ACTIVITIES. CONSTRUCTION EXPENDITURES AND CAPITAL STRUCTURE (MILLIONS OF DOLLARS)
'EA4S ItfERNAL FINANCING 3
I I
Common stock Preferred stock Long-tern debt:
Notes payable Contributions from parent net Other funds (describe)
Total External Funds INTE1NALLY SENERATED CASH het ;ncome Less:
preferred dividends common dividenas Retained earnings Deferred taxes Invest. tax cred, deferred Depreciation and amort.
Change in working capital Less: AFOC Total Internal Funds TOTAL FUNDS 5
00NSTRUCTICN EXPEN0!TURES*
I' I
I TMI-1 Modiffcations 51I-2 Cleanup g
3 2tMe* ConstrJction Exp.
, TOTAL I
3 3
3 i
3 STWE1 CAPITAL REQUIREMENTS Raae stion of Maturing Bonds Accuisition of Son 63 for $1nking Funds Miscellaneous Require-ments (detail)
- 0TAL CAPITAL REQUIRE-tiENTS CAPITAL STRUCT'JRE (S 1 %)
Long-term ceot S
t 5
5 5
5 5
Preferred stock Common equity TOTAL Short-term 3ect
- Exclusive of AFCC
)
i m.w,,
e U.S. NUCLEAR REGULATORY COMMISSION THREE MILE ISLAND NUCLEAR STATION, UNIT NO. 1
' ART, PROCEEDING - DOCKET NO. 50-289 D'
(TTACHMENT FOR ITEM NO. 7.a.
ESTIMATED ANNUAL COST OF OPERATING NUCLEAR GENERATING UNIT: THREE MILE ISLAND NUCLEAR STATION, UNIT 1 FOR THE CALENDAR YEAR 19_
Operation and maintenance expenses Nuclear power generation Nuclear fuel expense (average plant capacity factor '
%).............
Other operating expenses.................................................
Maintenance expenses.....................................................
1 To tal nucl ea r power genera ti o n..............................
Transmission expenses......................................................
Administrative and general expenses Property and liability insurance.........................................
Other A. & G expenses....................................................
Total A. & G.
expenses..............................................
TOTAL 0&M EXPENSES..................................................
Depreciation expense............
Taxes other than income taxes Property taxes.............................................................
0ther......................................................................
Total taxes other than i ncome taxes.................................
Income taxes -
Federal.......................................................
I n c ome ta x e s - o t h e r.........................................................
Deferred income taxes - net..................................................
Inves tment tax credi t adj us tments - net......................................
Return'on investment (rate of return:
%)...............................
TOTAL ANNUAL ESTIMATED COST OF OPERATION FOR YEAR............. $
Total Annual Estimated Energy (GWHR) to be produced for year............
j Estima ted Average Energy Cost (MILLS / KWHR) for year.....................
t
,e e
U.S. NUCLEAR REGULATORY COMMISSION THREE MILE ISLAND NUCLEAR STATION, UNIT NO.1 RESTART PROCEEDINGS - DOCKET NO. 50-289 ATTACHMENT FOR ITEM NO.17 RATE DEVELOPMENTS Electric Gas Other Granted Test year utilized Annual amount of revenue increased requested-test year basis (000's).
Date petition filed Annual amount of revenue increase allowed-test year basis (000's)
Percent increase in revenues allowed Date of final order Effective Date Rate base finding (000's)
Construction work in progress included in Rate base (000's)
Rate of return on rate base authorized Rate of return on common equity authorized Revenue effect (000's)
Amount received in year granted Amount received in subsequent year (If not available, annualize amounts received in year granted)
Pending Requests t
Test year utilized Amount (000's)
Percent increase Date petition filed Date by which decision must be issued Rate of return on rate base requested Rate of return on common equity requested Amount of rate base requested Amount of construction work in progress requested for inclusica in rate base
U.S. NUCLEAR REGULATORY CQ4 MISSION THREE MILE ISLAND NUCLEAR STATION, UNIT NO.1 RESTART PROCEEDINGS - DOCKET NO. 50-289 3
ATTACHMENT FOR ITEM NO.18 FINANCIAL STATISTICS Earnings ava*lable to common equity Average common equity Rate of return on average common equity Times total interest earned before FIT:
Gross income (both including and excluding
' AFDC) + current and deferred FIT + total interest charges + amortization of debt discount and expense Times long-term interest earned before FIT:
Gross income (both including and excluding AFDC) + current and deferred FIT + long-term interest charges + amortization of debt discount and expense Bond ratings (end of period)
Standard and Poor's Moody's Times interest and preferred dividends earned after FIT:
Gross income (both including and excluding AFDC) + total interest charges + amortization of debt discount and expense + preferred dividends.
AFUDC Net income after preferred dividends Market price of common Book value of common Market-book, ratio (end of period)*
Earnings avail. for common less AFDC +
depreciation and amortization, deferred taxes, and invest. tax credit adjust.-
deferred.
Common dividends Ratio Short-term debt Bank loans
[
Commercial paper l
Capitalization (Amount & Percent) l Long-term debt Preferred stock Common equity If. subsidiary company, use parent's data.
L
.