ML19343A647

Forwards Amend 41 to OL Application.Amend Relates to Applicant Request for Reinstatement of Prior Authorization for Transfer from CT Light & Power Co to Fitchburg Gas & Electric Light Co

ML19343A647
Person / Time
Site:	Seabrook
Issue date:	11/18/1980
From:	Ritsher J ROPES & GRAY
To:	Office of Nuclear Reactor Regulation
Shared Package
ML19343A648	List: ML19343A647 ML19343A650 ML19343A651 ML19343A653
References
NUDOCS 8011190371
Download: ML19343A647 (1)

Text

ROPES & G RAY 2d5 FRANKLIN STREET BOSTON 02110

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CASLC ADOntst PCPGRALOW AREA CCDE 63] 423 6100 ttLtm waaragm940Si9 -= j November 18, 1980 h 7

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Commission O o 4

3 Directorate of Licensing Cffice of Regulation Washington, D. C. 20045 Attention: Director Re: Amendment 41 to License Application Dated P' March 30, 1973 CDocket Nos. 50 443 & 50 444) and Request for Partial Transfer of Construc-tion Permits Nos. CPPR-135 and CPPR-136 Gentlemen:

Enclosed herewith for filing in the above dockets are three signed and twenty-two conformed copies of Amendment 41 to the above License Application. This Amendment relates to the Applicants' request for reinstatement of the prior author-1:ation for the transfer from The Connecticut Light and Power Company ("CL&P") to Fitchburg Gas and Electric Light Company

("Fitchburg") of a fractional interest in the Seabrook project.

This authorization had been granted by Amendment No. 1 to the above Construction Permits, dated January 31, 1979, but was withdrawn as part of A'nendment No. 3 to said Construction Per-mits in August, 1980 because the transaction had not then been consummated. The Safety Evaluation accompanying Amendment No.

3 did conclude that Fitchburg was financially qualified to assume this interest and the Commission stated at that time that when advised that the transfer to Fitchburg would be con-sunmated, it would evaluate a request for approval of such transfer on the basis of that Safety Evaluation if then cur-rent. The Massachusetts Department of Public Utilities has now approved that transaction and the companies desire to con-clude the transfer on December 19, 1980. Therefore, the com-panies request prompt issuance of a further amendment reinstat-ing the authorization for CL&P to transfer that interest to ,,

Fitchburg. 93 Very truly yours, 9 kL2L

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JAR:vml i Enclosures

i CERTIFICATE OF SERVICE I, John A. Ritsher, one of the attorneys for the applicants herein, hereby certify that on November 18, 1980 I made service of the within document by mailing copies.thereof, postage prepaid, ,

first class or airmail, to:

Alan S. Rosenthal, Chairman Ellyn R. Weiss, Esquire Atomic Safety and Licensing Harmon.& Weiss Appeal Board Suite 506 U.S. Nuclear Regulatory Commission 1725 I Street, N.W.

Washington, D.C. 20555 Washington, D.C. 20006 Dr. John H. Buck Robert A. Backus, Esquire Atomic Safety and Licensing O'Neill Backus Spielman Appeal Board 116 Lowell Street U.S. Nuclear Regulatory Commission Manchester, New Hampshire 03105 Washington, D.C. 20555 Office of the Attorney General Dr. W. Reed Johnson Commonwealth of Massachusetts 4 Atomic Safety and' Licensing One Ashburton Place Appeal Board Boston, Massachusetts 02108 U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Edwin T. Reis, Esquire Assistant Chief Hearing Counsel Ms. Elizabeth H. Weinhold Office of the Executive Legal 3 Godfrey Avenue Director .

Hampton, New Hampshire 03842 U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Office of the Attorney General 208 State House Annex Concord, New Hampshire. 03301

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j John A. Ritsher l

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• 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 Houpshire Nuclear Units, dated May 1, 1973 (the

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" Joint Ownership Agreement") and will be owned in the same pro-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 participants. As noted in the License Application,_there were unresolved issues, involving legislative changes and munihipal authorization, which affected these addi-tional participants.

As of March 30, 1973, the nine comuitted participants and their Ownership Shares were as follows:

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. 5/1/78

~(Amend, No. 39) 1 i

Participant Ownership Share -

i Public. Service-Company.of New j Hampshire 50.0000%

The United Illuminating Comnry 20.0000 Central Maine Power Company 2.5505 The Connecticut Light and Power Company . 11.9776 ,

i Fitchburg Gas and Electric Light l

Company .1716 Montaup Electric Company 1.9064 New Bedford Gas and Edison Light 1

Company 1.3539 New England Power Company 8.9430 j Vermont Electric Power Company, Inc. 3.0970 I

100.0000%

The thirteen potential additional participants were: .

Applicant Ownership Share Ashburnham Municipal Light Plant .01195%

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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 Municipal Light Depart-ment

.05565 Middleborough Gas & Electric

' Department .05598 Middleton Municipal Light' Department .02563

' New Hampshire Electric Cooperativo, Inc. 2.41542 Norch Attleborough Electric Depart- i ment .03648 South Norwalk Electric Works .00855 Templeton Municipal Light _ Plant .03023 3.03491%

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- During the course of the construction permit proceedings, .

some adjustment of participations occurred: Amendment 28 to

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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 Srsbrook 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 Cwnership 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. O.1326 100.0000%

5/14/79

( Amend . No . 4 0 )

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- 1 l

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 thereto, 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:

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11/10/80 h (Amend. No, k1) h i

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Participant Ownership Share ,

Public Service Company of New _~

Hampshire 50.00000%

The United Illuminating Company 20.00000 9.95766 l New England Power Company Central Maine Power Company 2 54178  ;

5 Central Vermont Public Service 1.59096  ;

Corporation #

Fitchburg Oas and Electric Light 0.60432 Company Montaup Electric Company 2.93531  :

New Bedford Oas 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 Plah,t Commission 0.10034 Massachusetts Municipal Wholesale Electric Company 5 59249 Maine 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 1 other participants , including Montaup , New Bedford and Fitch-burg. All of the transfers authorized by Amendments Nos. 1 and 2 have been consummated as of the date hereof, except the transfers by CL&P of 0.43332% to Fitchburg, 1.03542% to Montaup and 3.024435 to New Bedford. The agreement between New Bedford and CL&P expired on December 31, 1980. Commission authorisation of the other two transfers was withdrawn by Amendment No. 3, subject to reconsideration when consummation thereof became likely. On October 30, 1980, the Massachusetts Department of Public Utilities issued an order approving the transaction with Fitchburg but disapproving the transaction with Montaup.

• 11/10/80 (Amend. No. 41)

B. Pending Transfers On March 3, 1979, the Board of Directors of Public 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-l ment to provide that the Ownership Shares of PSCo and the other i 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 I

the contributions by PSCo. As a result of the subsequent negoti-ations, an initial agreement was reached (in the form of the i

'1 Seventh Amendment, dated as of April 18, 1979, to the Joint Ownership Agreement ) which provided for reallocation of a 22%

i Ownership Share of the Seabrock Units. However, the owner-1 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 Amendment to the Joint Owner-

• 3/14/30

. (Supp. Mo. 4 to Amend. No. 40) 2 i#

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chip Agreement (in the form heretofore filed as part of 5

Supplement No. 3 to Amendment No. 40) was entered into, which .

provides for a reallocation between PSCo and the other partici- [

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pants, on substantially the same basis as set forth in the .

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Seventh Amendment, of the following interests:

Additional  !

Ownership Share Licensee Massachusetts Municipal Wholesale 6.00091%

Electric Company  :

New Bedford Gas and Edison Light 2.17390 ~~

Company 1.80142 Bangor Hydro-Electric Company 1.00000  ?

Montaup Electric Company 1.00000 ~

Central Maine Power Company Taunton Municipal Lighting Plant Commission 0.13065 .

Town of Hudson, Massachusetts e Light and Power Department 0.01957 =

12.12645%

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

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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 reman,ing 10% interest which it desired to divest on the The following utilities terms contained in the Tenth Amendment.

have accepted that offer:

Transferee Ownership Share New Hampshire Electric Coopera-tive, Inc. c.17391%

Fitchburg Gas and Electric Light j Company 0.26087  ;

Taunton Municipal Lighting Plant Commission 0.20380

' 11/10/80 ,

(Amend. No. 41) l l

Proceedings before state regulatory agencies in Massachu-i setts and New Hampshire to obtain approval of the foregoing reallocations were initiated and the necessary approval was ,

received from the New Hampshire Public Utilities Commission on December 31, 1979 on October 30, 1980, the Massachusetts Department of Public Utilities approved the transactions between PSCo and Fitchburg, Montaup and New Bedford; the Massachusetts DPU proceedings with respect to MMWEC have been closed and briefed and an order is expected shortly. The Adjustment Period as to each such adjustment will commence promptly after receipt <

of the remaining requisite regulatory approval as to MMWEC.

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 follows:

Transferee Ownership Share Central Maine Power Company 2.50000%

Montaup Electric Company 1.06469 These transfers were subject to regulatory approval by state regulatory agencies in Connecticut, Massachusetts and New Hamp-shire as well as to Commission approval of the financial qualifi-cations of the transferees. Requisite approval of the Central Maine transaction was obtained and the transfer has been consum-mated. In its Order dated October 30, 1980, the Massachusetts DPU rejected the Montaup acquisition and therefore that transaction will not be consummated.

After consummation of the reallocations presently provided for in the Tenth Amendment, the transfer by UI to Central Maine,

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11/10/80 (Amend. No. 41) 1 and the transfer by CL&P to Fitchburg described herein, the Ownership Share of each participant in Seabrook will be as I follows:

Participant Ownership Share Public Service Company of New Hampshire 35 234975 J The United Illuminating Company 17.50000 Central Maine Power Company 6.04178 Fitchburg Gas and Electric Light Company 0.86519 Montaup Electric Company 2.90989 New England Power Company 9 95766 l

Central Vermont Public Service Corporation 1.59096 1 New Bedford Gas & Edison Light Company 3 52317 The Connecticut Light and Power Company 4.05985 New Hampshire Electric Coopera-J i

tive, Inc. 2.17391 4 Town of Hudson, Massachusetts Light and Power Department 0.07737 Vermont Electric Cooperative, Inc. 0.41259 Massachusetts Municipal Wholesale Electric Company 11.59340 Maine Public Service Company 1.46056 Bangor Hydro-Electric Company 2.17391 Taunton Municipal Lighting Plant Commission 0.43479 100.000005 l

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