ML20009F386

Forwards Request for Updated Financial Info

ML20009F386
Person / Time
Site:	Allens Creek File:Houston Lighting and Power Company icon.png
Issue date:	07/20/1981
From:	Tedesco R Office of Nuclear Reactor Regulation
To:	Goldberg J HOUSTON LIGHTING & POWER CO.
References
NUDOCS 8107310090
Download: ML20009F386 (12)

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Docket No. 50-466 SHanauer Q.

RTedesco RVollmer C4 fir. J. H. Goldberg OELD 6

Vice President OIE (3)

Nuclear Engineering and Construction bec: TERA /NSIC/ TIC %

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Houston Lighting and Power Company L/PDR y

ief-P. O. Box 1700

-NRC/PDR' Houston, Texas 77001 ACRS (10)

Dear Mr. Goldberg

SUBJECT:

REQUEST FOR UPDATED FINANCIAL INFORilATION The staff plans to update in a further supplement its review of Houston Lighting and Power Company's financial qualifications to construct the Allens Creek Nuclear Generating Station, Unit 1, that was reported in Supplement No. 2 to the Safety Evaluation Report, NUREG-0515, March 1979.

In order to complete that review we find that we nee-1 the information requested in the enclosure.

Sincerely, origftc] s'ned by Jiphert L, Tedesco Robert L. Tedesco, Assistant Director for Licensing Division of Licensing

Enclosure:

As stated cc: See next page 8107310090 810720 PDR ADOCK 05000466 I

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7 PdRC FORM 318 HO;80l NRCM O240 OFFICIAL RECORD COPY

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Mr. R. L. Ferguson Managing Director Washington Public Power Supply System P.O. Box 968 3000 George Washington Way Richland, Washington 99352 cc: Mr. V. Mani United Engineers & Constructors, Inc.

30 South 17th Street Philadelphia, Pennsylvania 19101 Nicholas S. Reynolds, Esq.

DeBevoise & Liberman 1200 Seventeenth Street, N.W.

Washington, D. C.

20036 Mr. E. G. Ward Senior Project Manager Babcock & Wilcox Conpany P.O. Box 1260 Lynchburg, Virginia 23505 Resident Inspector /WPPSS NPS l

c/o U.S. Nuclear Regulatory Commission P.O. Cox 69 Richland, Washington 99352 1

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.s ALLENS CREEK' Mr. J. H. Goldberg Vice President Huclear Engineering and Construction Houston Lighting & Power Company P.O. Box 1700 Ilouston,. Texas 77001 cc:

R. Gordon Gooch, Esq.

D. Marrack Baker & Boots 420 Mulberry Lane 1701 Pennsylvania Avenue, N.W.

Bellaire, Texas 77401 Washington, D. C.

20006 Mr. Wayne Rentfro J. Gregory Copeland, Esquire P.O. Box 1335 Lowenstein, Newman, Reis & Axelrad Rosenberg, Texas 77471 1025 Connecticut Avenue, N.W.

Washington, D. C.

20036 Rosemary N. Lemmer 11423 Oak Spring Mr. P. A. Horn Houston, Texas 77043 Project Manager, ACNGS Houston Lighting & Power Corpany Leotis Johnston P.O. Box 1700 1407 Scenic Ridge Houston, Texas 77001 Houston, Texas 77403 Mr. Ray Matzelle Mr. William J. Schuessler Project Manager, ACNGS 5810 Darnell Ebasco Services, Inc.

Houston, Texas 77043 19 Rector Street New York, New York 10005 Margaret & J. Morgan Bishop 11418 Oak Spring Mr. Ray Lebre Houston, Texas 77043 Project Manager, ACNGS General Electric Stephen A. Doggett, Esq.

175 Kurtner Avenue Pollan, Nicholson & Doggett l

San Jose, California 53125 P.O. Box 592 Rosenberg, Texas 77471 Susan Plettman, Esquire David Preister, Esquire Bryan L. Baker Texas Attorney General's Office 1923 Hawthorne P. 0. Box 12548 Houston, Texas 77098 Capitol Station Auston, Texas 78711 Robin Griffith 1034 Sally Ann Mr. and Mrs. Robert S. Framson Rosenberg, Texas 77471 4822 Waynesboro Drive Houston, Texas 77035 Mr. William Perrenad 4070 Merrick Mr. F. H. Potthoff, !!'

Houston, Texas 77025 1814 Pine Village Houston, Texas 77080 y

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2-Mr. J.11. Goldberg cc:

Carolina Conn 1414 Scenic Ridge liouston, Texas 77043 Ms.'Carro Hinderstein 8739 Link Terrace Houston, Texas 77025 Janes Scott, Jr., Esq.

Texas Public Interest Research Group, Inc.

Box 237 UC University of Houston Houston, Texas 77004 Ms. Brenda A. McCorkle 6140 Darnell Houston, Texas /7074 Mr. John F. 'Doherty.

4327 Alconbury Street Houston, Texas 77021 U.S. Nuclear Regulatory Commission, Region IV Office of Inspection and Enforcement 611 Ryan Plaza Drive Suite 1000 Arlington, Texas 76011 Mr. C. G. Robertson Manager, Nuclear licensing Houston Lighting & Power Coapany P.O. Box 1700 Houston, Texas 77001 H

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REQUEST FOR ADDITIONAL FINANCIAL INFOR!MTION ALLENS CREEK NUCLEAR GENERATING STATION, UNIT 'l ALLENS CREEK DOCKET NO. '50-466 1.

Provide the most recent cost estimates for Allens Creek, Unit 1, grouped as follows:

(a) total nuclear production plant costs; (b) transmission, distribution, and general plant costs; and (c) nuclear fuel inventory cost for the first core. The cost estimates should be in dollars escalated through the year of construction completion.

Also, complete the attached schedule entitle, " Plant Capital In-vestment Sumaary," for the unit using the most recent cost esti-mates.

Indicate the estimated site labor requirements expressed as " man-hours /kWe."

Indicate the average site labor pay rate in dollars per hour (including fringe benefits) effective at month and year of NSSS purchase.

Indicate the estimated month and year of constru; tion start for the unit and the earliest and latest estimated dates for completion of construction of the unit.

2.

If nuchar fuel for the facility is to be acquired by lease or other arrangement than purchase, briefly describe the terms of the lease or' other arrangement.

3. The following infomation is required for ea'ch'i,nvestor-owned applicant:

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Complete the attached schedule entitled, " sources of Funds a.

for System-Wide Construction Expenditures During Period of Censt'ruct' ion of Subject Nuclear Power Plant," through the

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of earliest estimated completion of the unit. In-year dicate the assumptions upon which the "50urces of Funds" statement is based.

These assumptions include, but are not necessarily limited to:

(a) rate of return on average com-con stock equity; (b) preferred stock dividend rate; (.cl 1,ong-term and short-tem debt interest rates; (d) market / Sock ratio with respect to the projected comon stock offerings; (e)-comon stock dividend, payout ratio; (f) target, year-by-year capital structures; and (g) resultant SEC and indenture interest coverages over the perio'd of construction; Provide a brief exolanation of the basis f6r each assumption.

b.

Provide copies of:

the 1979 and 1980 annual reports tol stockholders; (1.)

(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 and 1980 SEC Form 10-K and the most recent SEC form 10-Q, and most recent 8-X.

Continue to submit copies of the annual report for each year there-sh ac recuired by 10 CFR 50J1(b).

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Provide copics of the most recent Officer's Certificate or'Het Earnings Certificate prepared in conjunction with the issuance c.

of mortgage bonds or debentures and showing interest coverage calculations using the tests set forth in the applicable in-Explain bondable, property addition provisions as they denture.

relate to restrictions on the issuance of new long-term debt.

l Provide copies of the portions of the indenture relating to interest coverage tests or alternative earnings tests and bond-Provide calculations of net earnings able property additions.

and interest coverage for the most recent 12-month period using the definitions of net earnings and annual interest requirements (on debt presently outstanding) using the most restrictive. test '

AssuK ng a range of set forth in the mortgage bond indenture.

interest rates considered realistic by the ut. M ty, state the additional amount of first mortgage bonds whic1 could be issued.

under the most restrictive test based on net etrnings as defined by the indenture for the most recent 12-month period.

If the corporate charter contains a" preferred sto'ck coverage ~

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requirement, provide copies of that ;io~rtion of the charter.-

Assuming a range of dividend yields considered realistic by the utility, state the additional amount of preferred stock that could be issued by applying the most restrictive test for preferred dividend coverage for the most recent 12-month period.

Provide a detailed explanation of all other restrictions, indenture provisions or constraints on the issuna of short and long-term e.

Short-debt, preferred stock, preference stock and comon stock.

term debt should include bank lines of credit and comercial I

Indicate compensating balance requirements, if any,.

paper, if any.

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for bank loans.

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

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In addition, indicate the nature, status, and amount of any Use the attached form to pending rate relief proceedings. Provide copies of the hearing.

provide this information. examiner's report and reco rnendatio final rate orders and ppinions, including.all financially Provide copies of the related exhibits referred to therein.

submitted, financially related testimony and exhibits of the 'c i

staff and company in the most recent rate relief action or pending rate relief request.

l Describe aspects of the Company's regulatory environment including, but not ne'cessarily limited to, the following:

test year utfif zed (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 ra. e base (original,

t cost, fair value, other (describe)); accounting for deferred inc~ome. taxes and investment tax credits; and fuel adjustment clauses in effect or proposed.

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Provide a list of generating units, transmission and distribution g.

facilities and general. p1hnt projects to be constructed during the period of cont.truction of the subject nuclear power plant, showing the type of facility, net capacity for each generating unit, the dollar amounts to be experded for each ~ facility during each of the years involved, and in-sarvice date of each facility.

4 h.

Complete the attached form entitled, " Financial Statistics" for the most recent 12-month period and for the years ended December 31, 1980, December 31, 1979 and December 31,1978.

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ATTACmfEh7 FOR ITDi NO.1 i

.PLAh'T CAPITAL INVESTMEhT_

SUMMARY

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BASIC DATA Cost basist at start of construction l

Ncce of plant NW(e)

Net capacity Eeactor type

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Run of river

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Natural draf t Desien and construction period cooling tevers j

Mechanical draf t Menth, year NSSS order cooling tevers -_

placed Other (describe)

Henth, year of coacercial operation Length of workveek h e.. r s Interest rate, interest e<-ale? or conpound?

during construction, COST SLM'lRY

' Total Cost Account Title Account Nu=her (thousand dollars)

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D'IRECT COSTS i

Lan d and land right s....................

20 FEYSICAL PLANT Structures and site f acilities..........

21 Reactor plant equip =ent.................

22 Turbine plant equip =ent.................

l 23 Electric plant equip =ent................

24 Misc. plant equip =ent...................

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'Sp are','p arts a11evanc e '............... r..

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Subtota1........................

1 INDIRECT COSTS _

and construction facilities, equip'~t, 91 s e rvi c e s..............................

Engineering and const. eg' t. s e rvic es...

92 Other costs.............................

93 during construction............

Interest 94 Subtota1........................

S-Start of constiuction cost..............~

• Escalation during constructico (__% yr. ) * [_

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Total plant capital invest =ect ($___/KW) l d fer purchase

_ 2aRAgang agearate escalation rates for site labor, site nateria s, ca

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ATTACK 4ENT FOR ITEM NO. 4rf,

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RATE DEVELOPP.ENTS

' Electric Gas Steam

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Granted Test year utilized Annual amount of revenue increase requ'ested-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 l

Rate of return on com on 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)

Pendino Recuests Test year utilized Amount (000's)

Percent increase Date petition filed.

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Date by'plilen decision must be -i.s' sue'd P. ate of return on rate base requested Rate of return on comon equity reques~ted Amount of rate base requested Amount of construction work in progress requested for inclusion in rate base

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2 4TIACHENI FOR ITEM 110../,b l

FItiAtiCIAL STATISTICS 12 months' endedHte

/U9 197J M +?-~

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(dollars in millions)

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Earnings available to comen equity Average comon equity Rate of return on average comon equity Times total interest earned before FIT:

Gross income (both including and excluding AFDC) + current snd 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 liet income after preferred dividends l

Market price of comon l

. Book value of comon l-Market-book ratio (end. of. period)*

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Earnincs avail. for comon less AFDC +

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

l deferred.

I Comon dividends l

t2tio Short-term debt Bank loans

,Co=ercial paper Capitalization (Amount & Percent)

Long-term debt Preferred stock l

Com on ' equity

• If subsidiery compaay, mm p9 treat's dstm