ML20009H040

Forwards Util 810731 News Release Re Plans Initiated to Consolidate Operations W/Sister Subsidiary,Middle South Util Sys,To Be Effective by Early 1982.Certificate of Svc Encl. Related Correspondence

ML20009H040
Person / Time
Site:	Waterford
Issue date:	07/31/1981
From:	Blake E LOUISIANA POWER & LIGHT CO., SHAW, PITTMAN, POTTS & TROWBRIDGE
To:	Foreman H, Jordan W, Wolfe S Atomic Safety and Licensing Board Panel
References
NUDOCS 8108050384
Download: ML20009H040 (6)

Text

r HEMTED connESPONDn's SH AW, PITTM AN, PoTTs & TROWBRIDGE 1800 M STRE ET N. W.

WASHINGTON, D. C. 20036 TELEPwoNg TELECO PI E R (202) 822-1000 (202) 822-fC99 & S22-1899 WRITE R'S DIRECT DI AL NUMBER TELEX 822-1084 .. 2...ist,A.tA.,.. .

C ABLE "$M AWLAW**

July 31, 1981 Administrative Judge Administrative Judge Sheldon J. Wolfe Harry Foreman Chairman, Atomic Safety and Director, Center for Licensing Board Population Studies U.S. Nuclear Regulatory Box 395, Mayo Commission University of Minnesota Washington, D.C. 20555 Minneapolis, Minnesota 55455

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Administrative Judge 4o Walter H. Jordan #/ ,

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881 West Outer Drive M Oak Ridge, Tennessee 37830 f{

.c ggg 3 jggg \j Ci::cc cf m 53:cxy In the Matter of c, D&. :: '. h:ms Dud 8l Louisiana Power & Light Company g (Waterford Steam Electric Station, Unit 3) NI Docket No. 50-382

Dear Chairman Wolfe and Drs. Foreman and Jordan:

Enclosed for your information is a news release issued today which reports that Louisiana Power & Light Company has initiated plans to consolidate its operations with a sister subsidiary in the Middle South Utilities System, New Orleans Public Service, Inc. This consolidation, which could become effective by early 1982, is not expected to have any signifi-cant effect on considerations relevant to the pending appli-cation for operation of the Waterford3 unit, or on the schedule for completion or operation of that plant.

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t Respectfully submitted,

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1 0108050384 810731 Q1. iks ,p.

FDR ADOCK 05000382 Ernest L. Blake, Jr.

G PDR Counsel for Applicant ELB/tjc cc: attached Service List l

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• UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION t

Before the Atomic Safety and Licensing Board In the Matter of )

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LOUISIANA POWER & LIGHT COMPANY ) Docket No. 50-382

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(Waterford Steam Electric )

Station, Unit 3) )

SERVICE LIST Sheldon J. Wolfe, Esquire Lyman L. Jones, Jr., Esquire Chairman, Atomic Safety and Gillespie & Jones Licensing Board uite 201 U.S. Nuclear Regulatory 1420 Veterans Memorial Boulevard Cor.tmission Metairie, Louisiana 70005 Washington, D.C. 20555 -

i Stephen M. Irving, Esquire

.Dr. Harry Foreman Louisiana Consumers League, Inc.

Director, Center for 535 No. 6th Street Population Studies Baton Rouge, Louisiana 70802 Box 395, Mayo University of Minnesota Luke B. Fontana .

Minneapolis, Minnesota 55455 824 Esplanade Avenue New Orleans, Louisiana 70116 Dr. Walter H. Jordan 881 West Outer Drive Atomic Safoty and Licensing Oak Ridge, Tennessee 37830 Board Panel U.S. Nuclear Regulatory Joseph R. Gray, Esquire Commission Office of the Executive Washington, D.C. 20555 Legal Director .

U.S. Nuclear Regulatory Atomic Safety and Licensing

'l Commission Appeal Board Panel Washington, D.C. 20555 U.S. Nuclear Regulatory Commission Docketing and Service Section (3) Washington, D.C. 20555 Office of the Secretary U.S. Nuclear Regulatory Commission

• Washington, D.C. 20555 t

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,- p]7)1) CO 59 Qib&!ia M. News Release LOUISlAN A POWER G LIGHT .1%I.c Relabor.s Depulment.142 Dchonde St . New Dilcans. I a 10174. Irlephone (501) 3M M?/

TW A JS PUBLIC SERVICE e Corporate Communications Department 317 Baronne St . New 0.: cans. La 70160 ="'

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. Te!cpnone 586 2208/586 2404

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L0E AUG 31981 > .

'~ ,,r. b FOR IMMEDIATE RELEAt,E rf r-

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New Orleans, La., July 31, 1981 --Louisiana Power & Light Company and New Orleans Public Service Inc. have jointly begun development of a plan to consolidate their operations which could become effective by early 1982.

The announcement was made today by Jack Wyatt and Jim Cain, p r e s i d e n t. s , respectively, of LP&L and NOPSI. LP&L presently serves about 524,000 electric customers in 44 Louisiana parishes, including the 15th Ward of the city of New Orleans on the West Bank of the Mississippi River. NOPSI serves about 196,000 electric customers in the city of New Orleans (excluding the 15th Ward) and also provides natural gas and transit service to the entire city of New Orleans.

"The new company to emerge from the consolidation will be called Louisiana Power & Light Company (LP&L) and the area now served electricity by NOPSI will become a fourth operating division of LP&L in addition to the three present LP&L operating divisions. Because the electric systems of the two companies have long operated on an interconnected, incegrated basis as member companies of Middle South Utilities, the' consolidation of electric operations involves little or no significant change in procedures." ,

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. page 2 Upon consolidation of the companies Wyatt will serve as chairman and chicf executive officer of the new company, with Cain serving as president and chief operating officer. Both companies are presently headquartered in New Orleans and the new company will also be head-quartered there. Other operating companies of the Middle South system are Arkansas Power & Light Company, with its general office in Little Rock, and Mississippi Power & Light Company, with its general office in Jackson.

The two utility executives cited increased economic efficiency as a principal reason for the consolidation, pointing to rising costs and inflation as maj or factors intensifying the need for utilities to effect efficiencies whenever possible. A study of the operations of the two companies conducted by the management and accounting firm cf Drees Dunn Lubow & Company, Kansas City, Mo., indicates numerous areas of savings through consolidation of which expense reductions of more than $6,500,000 annually have been quantified. Most savings would be achieved in administrative and operational costs through elimination of duplication of effort and economies acnieved by consolidation of various functions such as engineering, planning, accounting, p'urchasing and others. Such operating economies and efficiencies would benefit custortcs of both companies.

The present Louisiana Power & Light Company would represent about 80% of the combined company in customer electric energy use and peac requirements and New Orleans Public Service Inc. would represent about 20%. LP&L is regulated by the Louisiana Public Service Commission in all parishes except the 15th Ward, city of New Orleans, and NOPSI is regulated by the New Orleans City

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l Council. Transfer of regulatory j urisdiction over NOPSI electric and gas operations from the City Council to the Louisiana Public Service Commission will 'ue submitted to New Orleans voters on

November 28, 1981, if an ordinance now pending before the New Orleans City Council is adopted.

Louisiana Power & Light Company has 2416 employees and Ncw ,

Orleans Public Service Inc. has 1566 in electric and gas operations.

"We anticipate that gas operations will be continued as a part ef the new company," Cain said.

• Officials of both companies will be working together in the months ahead,to achieve an efficient consolidation of personnel, administration and operations. A reduction in total employment would be anticipated.following the consolidation. Employees have i

been informed that such reduction will be achieved through normal attrition and no one,will be terminated because of the consclidation. ~

Employees' benefit programs likewise will not be adversely affected

. by the consolidation, both chief executive officers said.

NOPSI transit operations employ 1340 persons. "Our position

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with reference to transit continues to be that transit service, which in every major metropolitan area re. quires subsidy from governmental sources to support it, should be operated either by a municipality or a regional authority," Cain added. "As we have consistently stated, we wish to effect an orderly -transf er of the i

NOPSI transit operation to regional or municipal' control.and operation and have been working toward that end with the Mayor's Office of Transit, Administration. We hope to be able to reach

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Page 4 an ceceptable conclusion to this effort in the months ahead."

. Consummation of the consolidation will require state and fcderal regulatory approvals which the companies will seek in due course.

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