ML20039E209

Application to Amend CPPR-113,permitting Transfers of Ownership Interests in Facility from Hartford Electric Light to Western Ma Electric Co.Antitrust Info Encl

ML20039E209
Person / Time
Site:	Millstone
Issue date:	12/30/1981
From:	Ferland E NORTHEAST NUCLEAR ENERGY CO.
To:	Youngblood B Office of Nuclear Reactor Regulation
Shared Package
ML19262D309	List: ML20039E209
References
NUDOCS 8201070019
Download: ML20039E209 (20)

Text

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NNEGO , o _ ,,,

NORTHEAST NUCLEAR ENERGY COMPANY .3 6 59 A NORTHEAST UTILITIES COMPANY December 30, 1981 c)

G 4 Director of Nuclear Reactor Regulation United States Nuclear Regulatory Commission g 't Washington, D.C. 20555 RECEIVED Attention: Mr. B.J. Youngblood, Chief 9} JAN 6 1982m. [h Licensing Branch No. 1 888m t:rnn ea:;;a Division of Licensing c IffH y Office of Nuclear Reactor Regulation ,

to Gentlemen: W Re: Millstone Nuclear Power Station Unit No. 3 Docket No. 50-423

-Construction Permit No. CPPR-113, as Amended Amendment to License Application and Application for -

Amendment to Construction Permit Pursuant to the Atomic Energy Act of 19 54, as amended ,

the Energy Reorganization Act of 1974, and the Rules and Regulations of the United States Nuclear Regulatory Commission (the " Commission") issued thereunder, in particular 10 C.F.R. 552.101, 50.30, 50.80 and 50.90, Northeast Nuclear Energy Company (the " Company") hereby (i) amends its application for an operating license and such other permits and licenses as may be required for the construction and operation of the above-referenced f acility, Millstone Nuclear Power Station Unit No. 3

("Millstou a Unit No. 3"), and the possession, use and disposition of nuclear materials in connection therewith, and (ii) applies for and requests the approval of the Commission of an Amendment to Class 103 Construction Permit No. CPPR-113, as previously Ob h#' D e2olo7oo19 811230^ yh'9 W h\ \

PDR ADOCK 05000423 T I PDR a

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I amended, to permit transfers of ownership interests in Millstone Unit No.'3 from The Hartford Electric Light Company ("HELCO")

and Western Massachusetts Electric Company ("WMECO")

(collectively the " Sellers"), each. a subsidiary of Northeast

[ Utilities, to Massachusetts Municipal Wholesale Electric Company

("MMWEC"), Vermont Electric Generation and Transmission Cooperative, Inc. ("VEG&T"), Vermont Public Power Supply Authority ( "VP PS A" ) and Washington Electric Cooperative, Inc.

(" Washington") (collectively the " Purchasers") as follows:  !

Ownership Interest Purchased

.( in percentage and approximate Purchasers megawatts)

MMWEC 2.527% (29.06 MW)

VEG&T 0.600% ( 6.90 MW)

VPPSA 1.048% (12.05 MW)

Washington 0.139% ( - 1,6 0 M;i) .

l Total 4.314% ( 4 9 . f. J. MW )

HELCO and WMECO will transfer 1.079% (12.4 MW) and 3.235% (37.2 MW) ownership interests, respectively.

After the transfers, the ownership interests (in percentages and approximate MW) of the Sellers and the Purchasers in Millstone Unit No. 3 will . be as follows : I

HELCO 17.121% (196.90 MW)

WMECO 9.115% (104.80 MW)

MMUEC 7.326% ( 84.25 MW)

VEG&T 0.600% ( 6.90 MW)'

VPPSA 1.048% ( 12.05 MW)

Washington 0.139% ( l.60 MW)

This application (three signed originals, under oath, and nineteen copies) is being submitted by the Company on behalf of all current participants in the project, including.the Sellers and the Purchasers (collectively the " Applicants") . Pursuant

i. to Section 50.32 of the Commission's regulations, the Applicants hendy incorporate by reference and make a part of this application the Power of Attorney or Designation of Agent by each of the respective current participants, including the Sellers and MMWEC, appointing the Company attorney-in-fact or agent, as appropriate, for the purpose of filing applications for a construction permit, related permits and licenses, and all amendments thereto. Enclosed herewith are copies of a Power-or Attorney or a Designation of Agent executed by VEG&T, VPPSA 1

and Washington appointing the Company agent for the purpose of filing this application and all amendments thereto. The use of such Powers of Attorney and Designations of Agent is consisten>. with procedures used in connection with the original Construction Permit Application for Millstone Unit No. 3 (Docket No. 50-423).

This amendment and application for transfer is in compliance with Paragraphs 50.80(a) and (b) of the Commission's reg ula tions . Its purpose is to provide for the addition of the Purchasers as applicants for all licenses previously I requested and for the transfers to the Purchasers from the Sellers of the ownership interests in Millstone Unit No. 3 indicated above.

MMWEC is a present owner of a 4.799% ownership interest (approximately 55.19 MW) in the Millstone Unit 3 project. On February 23,1977, the Commission issued an amendment to the construction permit approving MMWEC's purchase of its ownership interest. See Amendment No. 4 to CPPR-113.

MMNEC is a public corporation and political subdivision of the Commonwealth of Massachusetts organized under Chapter t

j 775 of the Massachusetts Acts of 1975 with 33 Massachusetts

( municipal electric systems as members. MMWEC has its principal I of fices in Ludlow, Massachusetts and is engaged in the acquisition, development and sale of bulk power to its member municipal electric systems and other electric utilities. MMWEC has contracted to sell its ownership share of the output of Millstone Unit No. 3 represented by the above-described purchase i-to 15 of its members and to Pascoag (Rhode Island ) Fire District.

MMWEC intends to rely primarily upon the issuance of long-term i

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debt in the form of revenue bonds to finance its ownership interest in the Millstone Unit No. 3 project. Such revenue bonds are or will be secured by "take or pay", life-of-unit power sales agreements with the participating municipal electric systems.

Washington is an electric cooperative organized under Title 30 of the Vermont statutes ( 30 V.S. A. SS3001-3042) for the purposes of generating , manuf acturing , purchasing , acquiring and transmitting electric energy for distribution, sale and supply to its members, governmental agencies and political subdivisions. Washington intends to obtain required f unds for financing its vwnership interest in the Millstone Unit No. 3 project through f unds loaned by the Federal Financing Bank for the benefit of the Rural Electrification Administration ("REA").

The loan agreement will require Washington to charge rates sufficient to pay all costs associated with the operation and maintenance of its electrical cooperative system including the principal and interest on the loan. Washington may obtain interim f unding from operating revenue and the National Rural Utilities Cooperative Finance Corporation.

VEG&T is an electric genet;' ion and transmission cooperative organized under Title 30 of the Vermont statutes (V.S.A. 53043). Its principal purpose is the generation,

purchase, acquisition, transmission, sale and supply of electric energy and capacity for its member systems. Members of .VEG&T obtain required additional generation or transmission capacity through VEG&T. VEG&T finances such capacity tnrough loans from REA which loans are secured by take or pay power purchase contracts with the participating members and a mortgage on the f acility providing such capacity. The power purchase contracts provide that the members will pay all of.VEG&T's expenses incurred in connection with the financing and operation of the facility. VEG&T is purchasing an ownership interest in Millstone Unit No. 3 for Vermont Electric Cooperative Inc. ("VEC"). VEG&T and VEC will enter into a take or pay contract with respect to that interest.

VPPSA is a public and governmental instrumentality of the State of Vermont chartered under Title 30 of the Vermont statutes (30 V.S.A. SS5001-5041) for the purposes of f.dentifying, developing ,- financing and operating electric power sr>urces for its members. Its members include ten municipal ele.ctric companies located and incorporated in the State of Vermont, seven of which will participate in the Millstone 3 purchase which is the subject of this application. The metabers cwn and operate electric systems for providing power and energy to residential, . commercial and industrial customers within their service territories. Each of VPPFA's members determines its i

1 needs for electric energy. VPPSA then secures necessary power through construction and joint ownership of,, participation- in, and/or short-term power purchases from, generating f acilities.

VPPSA's members are obligated to take oor pay for all-power purchased for their benefit. VPPSA intends to.obtain required

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f unds for financing- its 1.048% (12.05 MW) ownersh1p interest in the Millstone Unit-No. 3 project through the issuance of its own notes and bonds pursuant to the authority of 30 V.S. A.

55031. VPPSA's bonds will . be secured - by and financed through power supply contracts with the members participating .in the -

Millstone Unit No. 3 project which obligate such members to charge their customers rates suf ficient to pay all costs associated with the operation and maintenance of their- respective municipal electrical utility systems, including the cost of power purchased f rom VPPS A and the cos t to VPPSA of servicing the debt issued to ff ,ance the purchase.

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Each Purchaser is submitting with this letter nineteen (19) copies of the General and Financial Information required t

by 10 C.F.R. S50.33 and Appendix C to 10 C.F.R. Part 50. All Purchasers except MMWEC have electrical generating capacities of less than 200 MW in the aggregate und, 'therefore, are not l required to- filt the antitrust inf orma txon the Attorney General requires under 10 C.F.R. 550. 33a _ and Appendix L to 10 C. F.R.

Part 50. In addition, since MMWEC has less than 1400 MW of i

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electrical ' generating capacity, it is only required to respond to Question 9 of Appendix L. Twenty (20) copies of MMWEC's answer to that question'are submitted herewith. In accordance with 10 C.F.R. S2.101(a)(5), each of the other Purchasers is submitting an original and twenty-one (21) copies of an af fidavit setting forth the required information as to its electrical generating capacity.

In accordance'with S50.32 of the Commission's regulations, whlen is designed to eliminate repetition in .

applications, the Applicants hereby incorporate by reference and make a part of this application, the following information contained in previous applications, statements, and reports filed with the Commission:

1. General and Financial Information as prescribed . by 10 C.F.R. 550.33 and Appendix C to 10 C.F.R. Part 5 0, -

filed as part of the application for CPPR-ll3 and as a part of the prior applications dated October 17, 1975, October 14, 1976, April 18, 1977, May 9, 1977, August 25, 19 77, a nd June 10, 1981, for amendments to CPPR-113 relating to prior transfers of ownership interests in Millstone Unit No. 3.

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2. Information requested by the Attorney General for Antitrust Review as_prescri. bed by 10 C.F.R.  ;

I SS2.101(a)(5) and 50.33a and Appendix L to 10 C.F.R. I Part 50, filed as part of the application for CPPR-113 and as part of the prior applications for amendments to CPPR-113 relating to prior transfers of ownership interests in Millstone Unit No. 3.

The transfers will in no way af fect the operation and control of the Millstone Unit No. 3 project by the lead participants therein (HELCO, WMECO and their af filiate, The Connecticut Light and Power Company) or their financial qualifications to design and construct the project. Accordingly, the proposed transfer will not endanger the health or safety of the public and does not involve any significant increase in the probability of accident, any significant increase in the consequences of an accident, or any significant decrease in'the safety margin.

A copy of the job progress report describing the status of the Millstone Unit No. 3 project as of September 30, 1981, the-most recent such report sent to the participants in the project, is enclosed herewith.

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The proposed transfer is planned to be made, subject to the prior approval of the Commission and other regulatory.

bodies, in March , 1982. The Applicants, therefore, respectfully request that the Commission schedule review of this Application -

so .that approval may be granted before February 26, 1982.

It is requested that any correspondence with respect to this matter be sent to Northeast Nuclear Energy Company, as follows:

E. James Ferland Executive Vice President and Chief Financial Officer Northeast Nuclear Energy Company P.O. Box 270 Hartford, Connecticut 06101 and copies of all such correspondence be sent to:

Richard C. MacKenzie, Esquire Day, Berry & Howard One Constitution Plaza Hartford, Connecticut 06103 i

1 Pursuant to 10 C.F.R. S170.22, the Company is enclosing a check to cover the fee of S1,200 for a Class II amendment.

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PleasE indicate your' receipt of this application on the enclosed copy of this letter and return it to the undersigned in the enclosed stamped, self-addressed envelope.

Thank you for your consideration of this matter.

Respectf ully submitted ,

NORTHEAST NUCLEAR ENERGY COMPANY h / D h By Rh V E. James Ferland _ "\

Executive Vice President and Chief Financial Of ficer cc: Richard C. MacKenzie, Esquire Day, Berry & Howard One Constitution Plaza Hartford, Connecticut 06103 Bruce W. McKinnon Power Contract Manager l

Massachusetts Municipal Wholesale Electric Cooperative l Community Power Development Depa rtmen t P.O. Box 426 Ludlow, Massachusetts 01056 William J. Gallagher Vice President and Executive Manager l Vermont Electric Generation and l Transmission Cooperative Inc.

School Street Johnson, Vermont 05656 Harland G. Titemore General Manager l

Vermont Public Power l dupply Authority Pos t Of fice Box C-5515 -

South Burlington, Vermont 05401

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Robert Toombs Manager

, Washington Electric Cooperative East Montpelier, Ve rmont 05651 Edward Luton, Esquire Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Lester Kornblith, Jr.

Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Chase R. Stephens Chief, Docketing and Service Section Office of the Secretary U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Dr. Forrest J. Remick 207 Old Main Building Pennsylvania State University University Park, -Pennsylvania 16802 Atomic Safety and Licensing Appeal Board U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Edward S. Christenbury, Esquire Counsel for NRC Regulatory Staf f U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Waterford Public Library 49 Rope Ferry Road Waterford, Connecticut 06385 Lawrence J. Bettencourt First Selectman Town of Waterford 200 Bos ton Post Road Waterford, Connecticut 06385

r-STATE OF CONNECTICUT )

" WerL Decemberjd, 1981 COUNTY OF HARTFORD ) j Then personally appeared before me, E. James Ferland, who being duly sworn, did state that he is Executive Vice President and Chief Financial Of ficer of Northeast Nuclear Energy Company, the attorney-in-fact or agent for the Applicants herein, that he is duly authorized to execute and file the foregoing application in the name and on behalf of the Applicants herein, and that the statements in said application are true to the best of his knowledge and belief.

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NOTARY PUBLIC MY COMMISSION EXPIRES: J 37 I

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