ML20031E758
| ML20031E758 | |
| Person / Time | |
|---|---|
| Site: | Yankee Rowe |
| Issue date: | 10/08/1981 |
| From: | Soucy A YANKEE ATOMIC ELECTRIC CO. |
| To: | Saltzman J NRC OFFICE OF STATE PROGRAMS (OSP) |
| Shared Package | |
| ML20031E759 | List: |
| References | |
| NUDOCS 8110160391 | |
| Download: ML20031E758 (2) | |
Text
_
YANKEE ATOMIC ELECTRIC COMPANY
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}h 1671 Worcester Road Frarn nghorn, Massachusetts 01701
, ANKEE A. R. SOUCY
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74
% g%*n%few Mr. Jerome Saltzman, Assistant Director i-8 State and Licensee Relations A
Office of State Programs D
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U.
S.
Nuclear Regulatory Commission s\\
W Washington, D.
C.
20555
Dear Mr. Saltzman:
This acknowledges receipt of your letter of August 20, 1981 relative to the cash flow information submitted by us under the Price-Anderson Act.
In the second paragraph of that letter, you state "that any deficiency resulting from a shortfall in contributions from one co-owner will be made up by the other co-owners".
That assumption does not correctly reflect the relationship between and among Yankee Atomic and its sponsors.
The Power ContraOts obligate each co-owner to purchase its N
own respective percentage of power produced and to pay therefor its own respective percentage of the operating expenses of the Yankee Rowe Plant.
Additionally, each co-owner has agreed that any retrospective premiums assessed under the Price-Anderson Act constitute one of the operating expenses and as such, "Our respec-tive percentage of those assessments would be properly billable by you (Yankee Atomic Electric) and payable by us (the sponsors) in accordance with our respective Power Contract".
In our filing of cash flow projections for the year 1981, all sponsors except one show a cluarterly cash flow which is in excess of the projected maximum premium assessment.
The projected cash flow deficiency of one stockholder is more than covered by Yankee's own internal cash flow.
In addition, since the implementation of the financial requirements on licensees, Yankee Atomic Electric Company has maintained a specific credit line with the Bank of Nova Scotia in the amount of $2,800,000 as an additional guarantee that any assessment against Yankee can be met.
We believe that the combi-nation of Yankee's internal cash flow, Yankee's rights under the power contracts, and the Bank of Nova Scotia credit line (a copy of which is attached) satisfies the applicable requirements O(
of the regulations.
II (54 RPJane, PDR
Mr. Jerome Saltzman, Assistant Director State and Licensee Relations October 8, 1981 Page Two If you have any further questions, please don't hesitate to contact me.
Very truly yours, YANKEE ATOMIC ELECTRIC COMPANY A.
R.
Soucy Treasurer ARS:g