ML20003A047
| ML20003A047 | |
| Person / Time | |
|---|---|
| Site: | Zimmer |
| Issue date: | 01/26/1981 |
| From: | Borgmann E CINCINNATI GAS & ELECTRIC CO. |
| To: | Harold Denton Office of Nuclear Reactor Regulation |
| References | |
| RTR-NUREG-0694, RTR-NUREG-0737, RTR-NUREG-694, RTR-NUREG-737 NUDOCS 8101290272 | |
| Download: ML20003A047 (7) | |
Text
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i THE CINCINNATI GAS & ELECTRIC COMPANY se CINCINNATI OHlo 45201 E. A. 80ROMANN SENsom vect PRESIDENT Docket No. 50-358 January 26, 1981 Mr. Harold Denton, Director Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, D.C. 20555 RE:
WM. H. ZIMMER NUCLEAR POWER STATION -
UNIT 1 - ADDITIONAL NRC FINANCIAL QUESTIONS
Dear Mr. Denton:
Attached are responses to the three questions raised by the Staff in the enclosure to the December 19, 1980 letter from R.
L. Tedesco.
Very truly yours, THE CINCINNATI GAS & ELECTRIC COMPANY w- 'f'r.
E. A. BORGMANN EAB: dew Enclosures cc: Charles Bechhoefer State of Ohio
)
Glenn O. Bright County of Hamilton)ss Frank F. Hooper Sworn to nd subscribed before Troy B. Conner, Jr.
James P. Fenstermaker me this 2 '/
day of January, 1981.
Steven G. Smith William J. Moran J. Robert Newlin William G. Porter, Jr.
g James D. Flynn m
80 Notd' Public y
igF. T. Daniels EW. Peter Heile 4
,,' James H. Feldman, Jr.
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' John D. Woliver fAARGARET L HUBER
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- Mary Reder Nmy rS:. bia of Chia
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David K. Martin My Ccmmin.,a bpra A.g. 13,1933
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Robert A. Jons E!"
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~ Andrew B. Denni son Yj 0101 :.; O G k k
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ITEM NO. 1
" Provide a detailed, itemized estimate of the cost of constructing and installing items mandated as a result of the TMI accident, including in particular the items required by.NUREG-0694, "TMI-Related Requirements for New Operating Licenses", and NUREG-0737,
" Clarification of TMI Action Plan Requirements". Indicate the breakdown between capital and operating costs.
Indicate what per-
.centage of these costs are yet to be expended."
RESPONSE
The capital costs are estimated to be $30,000,000. An itemized breakdown is presented below:
~
Group No. 1 Special training, studies, and one-time administrative costs S 3,000,000 Group No. 2 Preparation of emergency plan and related facilities, including required communication equipment S 4,600,000 Group No. 3 Specially constructed onsite and offsite buildings and offices such as the emergency operating facility and technical support center S 8,400,000 Group No. 4 Post-accident monitoring facilities including core condition monitoring, radiation sampling, and related computer systems S 9,400,000 Group No. 5 various plant modifications including control room changes, additional shielding, and isolation S 4,600,000 Total Capital Cost Estimate TMI Items
$30,000,000 Of the above estimated capital costs, $1,498,000 (approximately 5%) have been expended as of December 31, 1980.
The annual operating costs in 1982 dollars are estimated to be $3,320,000.
An itemized breakdown is presented below:
Operations Labor
$1,500,000 Operations Material & Expense 680,000 Maintenance Labor 740,000 Maintenance Materials & Expense 400,000 Total
$3,320,000 These operating costs will be expended subsequent to startup.
ITEM NO. 2
" Describe in detail for each applicant the plan for financing the expenditures in Item No. 1, above. Will such expenditures be shared in the same ratio as the applicants' ownership percentages in Zimmer?
Indicate the assumptions underlying each applicant's plan for financing the expenditures. Provide an estimate of the percentage relationship between such expenditures and each applicant's overall construction budget for the period involved."
RESPONSF OF CG&E
'See Response to Iten No. 3 for description of the plan and assumptions underlying the plan for financing the capital expenditures identified in Item No. 1.
The operating costs identified in Item No. 1, upon approval by the applicable regulatory agency, would be reflected in rates charged to the Company's customers.
Capital costs identified in Item No. 1 represent expenditures exclusive of Allowance for Funds Used During Construction (AFUDC) and will be shared in the same ratio as the applicants' ownership percentages in Zimmer. Of the $30 million of costs, $12 million represents CG&E's share.
The unexpended capital costs identified in Item No. 1 are $28.5 million, of which $11.4 million represents CG&E's share, and will be incurred during 1981 and 1982. During this period, CG&E's total estimated construction costs are $411 million. Therefore, the unexpended costs in Item No. I will represent only about 2.8% of the overall construction budget for the period involved.
RESPONSE OF C&SOE See Response to Item No. 3 for description of the plan and assumptions underlying the plan for financing the capital expenditures identified in Item No. 1.
The operating costs identified in Item No. 1, upon approval by the applicablo regulatory agency, would be reflected in rates charged to the Company's cusromers.
Capital costs identified in Item No. 1 represent expenditures exclusive of Allowance for Funds Used During Construction (AFUDC) and will be shared in the same ratio as the applicants' ownership percentages in Zimmer. Of the $30 million of costs, $8.6 million represents C&SOE's share.
The unexpended capital costs identified in Item No. 1.are $28.5 million, of which $8.1 million represents C&SOE's share, and will be incurred during 1981 and 1982. During this period, C&SOE's total estimated construction costs are $302 million. Therefore, the unexpended costs in Item No. I will represent only about 2.7% of the overall construction budget for the period involved.
ITEM NO. 2 (Cont'd)
Page 2 RESPONSE OF DP&L The post TMI capital expenditures will be financed as part of DP&L's overall needs. See our response to Item No. 3 for information concerning DP&L's future financing program.
The operating costs identified in Item No. 1, upon approval by the applicable regulatory agency, would be reflected in rates charged to the Company's customers.
. Capital costs identified in Item No. 1 represents expenditures exclusive-of Allowance for Funds Used During Construction (AFUDC) and will be shared in the same ratio as the applicants' ownership percentages in Zimmer.
Of the $28.5 million of unexpended costs, $9 million represents DP&L's share.
'The unexpended capital' costs identified in Item No. I will be incurred during 1981 and 1982. During this peris.1, DP&L's total estimated construction.
costs are S521 million. Therefore, the costs in Item No. I will represent only about 1.7% of the overall construction budget for the-period involved.
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ITEM NO. 3
" Indicate the total estimated, unexpended cost (including unexpended costs in Item No. 1, above) to complete the construction of the Zimmer facility. Gescribe in detail for each applicant the plan for financing its share of such unexpended costs, and the assumptions underlying the financing plan. Provide an estimate of the percentage relationship between these unexpended costs and each applicant's overall construction budget for the period involved."
RESPONSE OF CG&E The total estimated, unexpended costs (including unexpended capital costs exclusive of AFUDC in Item No. 1, above) to complete the construction of the Zimmer Station is $204 million. Of these costs, $81.4 million represents CG&E's share. Additional AFUDC will amo'unt to $32.1 million and the balance of $49.3 million represents additional money that will have to be raised.
Construction costs for Zimmer Station are included in the overall require-ments for capital and have been or will be financed as a part of CG&E's overall needs. In 1980, CG&E issued 500,000 shares of 10.20% series $100 par value preferred stock, an additional 3.4 million enares of common stock at a price of $16.125 per share, and $100 million of 12% first mortgage bonds to finance part of its construction program including Zimmer Station.
The issuance of additional common stock through the Employee Incentive Thrift Plan, Employee Stock Ownership Plan and Dividend Reinvestment and Stock Purchase Plan raised approximately $14 million in 1980 and is expected to raise $16 million in 1981. In January, 1991, CG&E issued 300,000 shares of 12.52% series $100 par value preferred stock. Presently, the Company is raising capital through the issuance of short-term debt obligations at interest rates ranging from 17-7/3% to 20-1/2%. However, this money has not been specifically raised for construction of the Zimmer Station.
Determination of future financings are subject to several factors, including the amount and timing of rate increases, internal generation of funds, and the course of CG&E's construction program. Present estimates indicate that CG&E will sell approximately 2,500,000 shares of common stock in the first half of 1981 and will sell debt securities later in the year.
It presently is expected that any additional capital which may be required in 1981 would be provided from short-term bank loans or the issuance of commercial paper. Prices and terms of these securities wo'11d be determined by the financial market at the time of the sale.
The unexpended costs to complete construction of Zimmer will be incurred during 1981 and 1982. CG&E's share of these costs, $81.4 million comparcs to the company's total estimated construction costs of $411 million for 1981 and 1982. For these years, costs to complete Zimmer Station will represent approximately 19.8% of total estimated construction costs.
ITEM NO. 3 (Cont 'd)
Page 2 RESPONSE OF C&SOE The total estimated, unexpended costs (including unexpended capital costs exclusive of AFUDC in Item No. 1, above) to complete the construction of the Zimmer Station is $204 million. Cf these costs, $57.1 million represents C&SOE's share. Additional AFUDC will amount to $22 million and the balance of $35.1 million represents additional money that will have to be raised.
Construction costs for Zimmer Station are included in the overall require-ments for capital and have been or will be financed as a part of C&SOE's overall needs. In 1980, C&SOE issued $80 million of 13-5/8% first mortgage bonds, $30 million of which was new capital, and received a $30 million capital contribution from its parent company, American Electric Power Company, Inc. (AEP) to finance part of its construction program including Zimmer Station. Presently, the Company is raising capital through the issuance of shart-term debt obligations at interest rates ranging from 14.50% to 20.884.
However, this money has not been specifically raised for construction of the Zimmer Station.
Determination of future financings are subject to several factors, including the amount and timing of rate increases, internal generation of funds, and the course of C&SOE's construction program. Present estimates indicate that C&SOE will sell approximately $60 million of first mortgage bonds in the first half of 1981 and will receive a $40 million capital contribution from AEP some-time during the year.
It presently is expected that any additional capital which may be required in 1981 would be provided from short-term bank loans.
Prices and terms of these securities would be determined by the financial market at the time of the sale.
The unexpended costs to comple' construction of Zimmer will be incurred during 1981 and 1982. Of thest s ts, $57.1 million represents C&SOE's share and compares to the Comp ny's total estimated construction costs of
$302 million for 1991 and 1982. For these years, costs to complete Zimmer Station will represent approximately 18.9% of total estimated construction Costs.
RESPONSE OF DP&L The total estimated unexpended costs (includina unexpended capital costs exclusive of AFUDC in Item No. 1, above) to e d.lsue the construction of the
.Zimmer Station is $204 million. Of these e tt
$n5.5 million represents DP&L's share. Approximately $46 millio cc tb S6b.5 million will have to be raised with the remainder being nor.c 4 :
iC, The cash requirements to complete this construction are estireated 1.
^ 46 million.
Construction costs for Zimmer Station are included in the overall require-ments for capital and have been or will be financed as a part of DP&L's overall needs.
DP&L's future needs will be fulfilled by the issuance of vary-ing types and amounts of securities, _ including debt, common and preferred equity, leasing arrangements, and, in the interim, short-term Lurrowings.
The timing, amount, and type of specific financings has not been oetermined and is subject to several factors, including the amount and timing of rate
\\
c ITEM'NO. 3 (Cent'd)
Page 3 RESPONSE OF DP&L (Cont'd) increases, the amount of internally generated funds, market conditions and the amount of the total construction program.
The unexpended costs will be incurred during 1981 and 1982. During this period, DP&L's total estimated construction costs are $521 million. Therefore, the unexpended costs will represent about 12.6% of the overall construction budget for the period involved.