ML19347C555

Forwards Request for Addl Info for Financial Qualifications Review.Update of Estimated Annual Costs for First 5 Yrs of Commercial Operation & Revised Estimated Cost of Permanent Shutdown Should Be Provided

ML19347C555
Person / Time
Site:	Summer
Issue date:	12/08/1980
From:	Tedesco R Office of Nuclear Reactor Regulation
To:	Nichols T SOUTH CAROLINA ELECTRIC & GAS CO.
References
NUDOCS 8012310046
Download: ML19347C555 (8)

Text

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Docket No. 50-395 DEC 0 81980 si o

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'4 Mr. T. C. Nichols, Jr.

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Vice President & Group Executive 27 3

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i South Carolina Electric & Gas Company 2

x P. O. Box 764 Columbia, South Carolina 29281

SUBJECT:

REQUEST FOR ADDITIONAL INFORMATION Our review of your application indicates that updated information is required in order for us to complete our review of financial qualifications. The information that we require is identified in the enclosure.

We request that you provide this information not later than December 31, 1980.

If you require any cla'rification of these matters, please contact the staff's assigned project manager.

Sincerely,

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Robert L. Tedesco Assistant Director for Licensing Division of Licensing

Enclosure:

Request for Additional Information cc w/ enclosure:

See next page i

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Mr. T. C. Nichols, Jr.

Vice President & Group Executive Nuclear Operations DEC 0 8 580 South Carolina Electric & Gas Company 3

P. O. Box 764 i

Columbia, South Carolina " 29281 cc: Mr. William A. Williams, Jr.

Vice President South Carolina Public Service Authority 223 North Live Oak Drive Moncks Corner, South Carolina 29461 J. B. Knotts, Jr., Esq.

Debevoise & Liberman 1200 17th Street, N. W.

Washington, D. C.

20036 Mr. Mark B. Whitaker, Jr.

Group Manager - Nuclear Engineering & Licensing South Caro.ina Electric & Gas Company J

P. O. Box 764 Columbia, South Carolina 29218 Mr. Brett Allen Bursey Route 1, Box 93C Little Mountain, South Carol'.na e 29076 i

Resident inspector / Summer NPS c/o U. S. NRC Route 1, Box 64 i

Jenkinsville, South Carolina 29065 4

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REQUEST FOR ADDITIONAL FINANCIAL INFORMATION VIRGIL C. SUMMER HUCLEAR STATION, UNIT 1 DOCKET NO. 50-395

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1.a.

Provide an update of the estimated annual cost by year to operate the subject facility for the first five full years of concercial operation.

The types of costs included in the estimates should be indicated and included (butnct necessarily be limited to) operation and maintenance expense (with fuel costs shown separately), taxes and a reasonable return on investment.

(Enclosed is a form which should be a

used for each year of the five year period.)

Indicate the projected plant capacity for the unit each year.

b.

Indicate the unit price per KWH experienced by each applicant on system wide sales of electric power to all customers for the most recent 12-month period.

2.

Provide a revised statement of the estimated cost of permanently shutting down the facility, a listing of what is included in such costs, the as-sumptions made in estimating the costs, the type of shutdown contemplated, and the expected source (s) of funds to cover these costs. Supply a copy of any document refertrced in your response thereto.

3.

Provide an updated est mate of the annual cost to maintain the shutdown facility in a safe coniition.

Indicate what is included in the estimate, O

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assunptions made in estimating costs, and the expected source (s) offandstocoherthesecosts.

4.

If revised since the last submittal, provide a copy of joint participation agreement setting forth the procedure by which the applicants will share operating expenses and, if necessary, de_

ccmissioning costs.

5.

With respect to South Carolina Electric and Gas Company:

a.

Provide copies of:

1) the 1979 annual reports to stockholders; 2) the most recent interim financial statements; 3) the prospectus for the company's most recent security issue; 4) the preliminary prospectus for any pending security issue; and 5) the 1979 SEC Form 10-K and the most recent SEC Form 10-Q.

Continue to submit copies of the annual report for each year thereafter as required by 10 CFR 50.71(b).

b.

Describe updated aspects of the company's regulatory environment including, but not necessarily limited to, the following:

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; and fuel adjustment clauses in effect or proposed.

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Describe the nature and amount of the Company's most recent rate relief action and the anticipated effect on revenues.

In addition, indicate the nature, status, and amount of any pending rate relief proceedings, if any.

Use the attached form to provide this information. Pro-vide copies of the hearing examiner's report and recem-mendation and the interim and final rate orders and opinicns, including all exhibits referred to therein. Provide copies of the submitted, financially-related testimony and exhibits of the staff and company in the most recent rate relief action or pending rate relief request, d.

Complete the enclosed form entitled, " Financial Statistics,"

for the calendar year 1979, and for the most recent 12-month period.

6. With respect to the South Carolina Public Service Authority:

a.

Provide copies of the audited 1979 and the ost recent 12-month financial statements, including the most recent audit report.

Continue to submit copies of the audited annual financial report for each year thereafter as required by 10 CFR 50.71(b).

b.

Describe the nature and amount of the most recent and pending rate relief action (s) and its anticipated effect of net margins.

Provide the most recent official statement on bond offerings.

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ATTACHMENT FOR ITEM NO.

1.a.

ESTIMATED ANNUAL COST OF OPERATING NUCLEAR GENERATING UNIT: VIRGIL C. SUMMER NUCLEAR STATION, UNIT NO. 1

'FOR THE CALENDAR YEAR 19 _

(thousands of dollars)

Ooeration and maintenance exoenses Nuclear pouer generation Nuclear fuel expense (plant factor

%)...........$

Other operating expenses.....................

Maintenance expenses.......................

Total nuclear power generation.............

Transmission expenses........................

Administrative and general exoenses Property and liability insurance.................

Other A.&G. expenses.......................

Total A.&G. expenses....................

TOTAL 0&M EXPENSES.....................

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Depreciation expense.........................

Taxes other than income taxes Property taxes...........................

Other................................

Total taxes other than income taxes...........

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l Income taxes - Federal........................

Income taxes - other.........................

l Deferred income taxes - net.....................

Investment tax credit adjustments - net.

Return (rate of return:

%)..................

TOTAL ANNUAL COST OF OPERATION l

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ATTAC:f;ENT FOR 1TEP.I:0. a RATE DEVELCP"ENTS Electric Gas Steam v

Granted Test year utilized Annual amount of revenue increase requested-test year basis (000's)

Date petition filed Annual amount of revenue increase allcwed-test year basis (000's)

Percent increase in revenues allowed Date of final order Effective date Rate base finding (000's)

Construction tiork in progress included in Rate base (000's)

Rate of return on rate base authorized Rcte of return on common equity authorized Revenue Effect (000's)

Amount received in year granted Amount received in subsequent year (If not available, annualize 'am;unts received in year granted)

Pendino Reauests Test year utilized Amount (000's)

Percent increase Date petition filed Date by which decision must be issued l

Rate of return on rate base requested l

Rate of return on common equity requested Amount of rate base requested Amount of construction work in progress requested Tor inclusion in rate base l

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ATTACHMENT FOR ITEM NO. 5.d.

FINANCIAL STAT 1STICS 12 months' ended 1979 (dollars in millions)

Earnings available to c.omon 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 t'ebt 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 l

Market price of common l

Book value of common Market-book ratio (end of period)*

t Earnings avail. for common less AFDC +

depreciation and amortization, deferred taxes, and invest. tax credit adjust.-

deferred.

Common dividends l

Ratio Short-term debt Bank loans

,a Comercial paper l

Capitalization (Amount & Percent)

Long-term debt Preferred stock Comon equity l

• If subsidiary company, use parent's-data.

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