ML20039H201

Forwards Request for Addl Info Re Financial Qualifications

ML20039H201
Person / Time
Site:	Perry
Issue date:	12/22/1981
From:	Schwencer A Office of Nuclear Reactor Regulation
To:	Davidson D CLEVELAND ELECTRIC ILLUMINATING CO.
References
NUDOCS 8201190712
Download: ML20039H201 (9)

Text

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DISTRIBUTION;._.

Docket File 50-440/441 i

l LB#2 File l

Tressin, OELD DEisenhut/RPurple I

RTedesco DEC 2 2 1981 ASchwencer Docket ilos. 50-440 DHouston and 50-441 MService l

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JPeterson, OSD 4

O Mr. Dalwyn R. Davidson 1

Vice President - Engineering RECEIVED The Cleveland Electric Illuminating 2

Company a-DEC3 01981 > [8 Post Office Box 5000 amame nerwawa Cleveland, Ohio 44101

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Dear Mr. Davidson:

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Subject:

Request for Additional Information - Financial Qualifications Perry fluclear Power Plant, Unit 1 and 2 In the performance of the Perry licensing review, the staff has identified additional concerns in regard to financial qualifications. The information that we require is identified in the enclosure.

We request that you provide the infonnation not later than February 1,1982.

If you require any clarification of this request, please contact M. D. Houston l

Project Manager at (301) 492-8430.

Sincerely.

Original signed by IU h

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91 A. Schwencer, Chief l

Licensing Branch No. 2 Division of Licensing

Enclosure:

Request for Additional l

l Infonnation cc w/ encl:

See next page t

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Mr..Dalwyn R. Davids:n Vice President, Engineering The Cleveland Electric Illuminating Company P. O. Box 5000-Cleveland,e0hio 44101 cc: Gerald Charnoff, Esq.

Shaw, Pittman, Potts & Trowbridge 1800 M Street, N. W.

Washington, D. C. 20006

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Donald H. Hauser,' Esq.

The Cleveland Electric Illuminating Canpany. '

P. O. Box 5000 Cleveland, Ohio 44101 Resident Inspector's Office U.S.N.R.C.

Parmly at Center Road Perry, Ohio 44081 Donald T. Ezzone, Esq.

Assis. tant Prosecuting Attorney 105 Main. Street Lake County Adninistration Center Painesville, Ohio 44077 Tod J. Kenney 228 South College, Apt. A Bowling Green, Ohio 43402 Daniel D. Wilt Wegman, Hesiler & Vanderberg 7301 Chippewa Road, Suite 102 Brecksville, Ohio 44141 Rob.ert Alexander 0CRE Interim Representative.

2030 Portsmouth Street Suite 2 Houston Texas 77098 r

Terry Lodge, Esq.

l 915 Spitzer Building L

Toledo, Ohio 43604-t l

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9 REQUEST FOR FINANCIAL INFORMATION 320.0 320.1.

a.

Indicate the estimated annual cost by year to operate each unit of the subject facility for the first seven full years of each unit's commercial operation.

The types 'of costs included in the estimates should be indicated and include (but not necessarily be limited to) operation and maintenance expense (with fuel costs shown separately), depreciation, taxes and a reasonable return on investment.

(Enclosed is a form which should be used for each year of the seven year period.)

Indicate the projected plant capacity factor (in percent) for each unit during each of the seven years.

Provide separate estimates using 50 percent and 60 percent plant capacity factors.

b.

Indicate the unit price per kWh experienced by each applicant on system-wide sales of electric power to all customers for the most recent 12-month period.

320.2.

Indicate the estimated costs of permanently shutting down each unit 1

of the facility, stating what is included in such costs, the acsumptions e

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made in estimating the costs, the type of shutdown contemplated,

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and the intended source of funds to cover these costs.

..s 320.3.

Provide an estimate of the annual cost to maintain each unit o'f ~ the -

shutdown facility in a safe condition.

Indicate what is included s

in the estimate, assumptions made in estimating costs, and the 1

N intended source of funds to cover these costs.

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320.4.

If the facility is jointly-owned provide copies of the joint' participation agreement setting forth the procedures by which the applicants will share operating expenses and decommissioning costs.

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The following financial information is required for each investor-owned participant:

320.5.

Provide copies of the prospectus for the most recent security issue and copies of the most recent SEC Form 10-K and 10-Q.

Provide copies of the preliminary prospectus for any pending security issue. Submit copics of the Annual Report to Stockholders each year as required by 10 CFR 50.71(b).

320.6.

Describe aspects of its regulatory environment including, but not necessarily limited to, the following:

prescribed treatment of allowance for funds used during construction; rate base (original

' cost, fair value, other); accounting for deferred income taxes and l

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invsstment tai c(edits; fuelsadju'stment clausss in effect or propostd; historical, partially projectec or fully projected test year.

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320.7.

Desc;ibe the nature and amouot'of its most recent rate relief actio (i).' In addition, indicate the nature and amount of any

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pending rate, re' lief action (s)

'Use the' attached form to provide t

thisinformation.

Provide copies of the submitted, financially s

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related teclim6ny and exhibits of the staff and company in the most

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recent rate relief action or pending action.

Furnish copies of the x

s i f hearing examiner's report and reconnendation, and final opinion last issued with respect to each participant, including all financially-related exhibits referred to therein.

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s 320.5,.

Complete the enclosed form entitled, " Financial Statistics," for the most recent twelve-month period and for the previous three

' calendar years.

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ATTACHMENT FOR ITEM NO.

ESTIMATED ANNUAL COST OF OPERATING h'Ur.1 EAR GENERATING UNIT:

~ FOR THE CALEtiDAR YEAR 19 _

(thousands of dollars)

Operation and maintenance expenses liuclear power generation

%)...........$

Nuclear fual expense (plant factor Other operating expenses............... '......

Maintenance expenses.......................

Total nuclear power generation.............

Transmission expenses.........................

Administrative and general expenses i

Property and' liability insurance.................

i Other A.&G. expenses.......................

Total A.&G. expenses.....................

TOTAL OD; EXPENSES.....................

1 Depreciation expense.........................

Taxes other than income taxes _

l Property taxes............................

O th e r................................

Total taxes other than income taxes...........

Income taxes - Federal........................

Income taxes - other.........................

Deferred income taxes - net.....................

Investment tax credit adjustments - net................

Return (rate of return:

%)..................

TOTAL ANNUAL COST OF OPERATION i

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ATTACE Ei!T FOR ITD1 f.'0. _7_

RATE DEVELOPliE!;TS Electric Gas Steam Granted Test year utilized Annual amount of revenue increase requested-test year basis (000's)

Date petition filed i

Annual amount of revenue increase allowed-l test year basis (000's) i Percent increase in revenues allowed Date of final order Effective date Rate base finding (000's) l Construction work in progress included in 1

Rate base (.000's)

Rate of return on rate base authorized Rate of return on comon equity authorized Revenue Effect (000's)'

Amount received in year granted Amount received in subsequent year I

(If not available, annualize amounts i

received in year granted)

Pending Requests Test year utilized Amount (000's)

Percent increase Date petition filed i

Date by which decision must be issued g

Rate of return on' rate base requested Rate of return on comon equity requested Amount of rate base requested t

Amount of construction work in progress requested for inclusion in rate base O

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ATTACHMEriT FOR llLM liU.

H FillAriCIA!. STATISTICS 12 months' ended

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(dollars in millions)

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

Gross income (both including and excluding AFDC) + current and deferred FIT + total interest charges + amortization of debt discount and expense Times long-term interest earned before FIT:

Gross in:ome (both including and excluding AFDC) + current and deferred FIT + long-term interest charges + amortization of

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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 I;et income after preferred dividends l

Itarket price of comon Book value of comon Market-book ratio (end of period)*

l Earnings avail. for comon less AFDC +

depreciation -and amortization, deferred l

taxes, and invest. tax credit adjust.-

deferred.

Co:: mon dividends Ratio Short-tenn debt Bank loans Comercial paper Capitalization (Amount & Percent _)

Long-term debt Preferred stock Co: mon equity

• If subsidiary company, use parent's data.

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..g' jg NUCLEAR REGULATORY COMMISSION WASHINGTCN, D. C. 20555

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Docket Nos. 50-440 and 50-441 ef 3 um.

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- ov Mr. Dalwyn R. Davidson Vice President - Engineering The Cleveland Electric Illuminating Company Post Office Box 5000 Cleveland, Ohio 44101

Dear Mr. Davidson:

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Subject:

Request for Additional Information "u--.. :, _,

Perry Nuclear Power Plant, Unit 1 & 2 h4sc4/ pAbiar/!*ir, In the performance of the Perry licensing revie staff has identified

- additional concerns in regard to. = ~----

' n The informatica that we require i3 identified in tt.d enclosure. "

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We request that you provide the information not later than

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If you require any clarification of.this request, please contact M. D. Houston, Project Manager at (301) 492-8430.

Sincerely INWb A. Schwencer, Chief Licensing Branch No. 2 Division of Licensing

Enclosure:

Request for Additional

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Infomation cc,w/ enc 1:

See next page

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i-NUCLEAR REGULATORY COMMISSION

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DEC 2 21981 Docket Nos. 50-440 and;50-441 i

Mr. Dalwyn R. Davidson Vice President - Engineering The Cleveland Electric Illuminating Company l

Post Office Box 5000 Cleveland, Ohio 44101

Subject:

Request for Additional Information - Financial Qualifications Perry Nuclear Power Plant, Unit 1 and 2 In 'the performance of the Perry licensing review, the staff has identified additional concerns in regard to financial qualifications. The information that we require is identified in the enclosure, 1

We request that you provide the information not later than February 1,1982.

If you require any clarification of this request, please contact M. D. Houstoa Project Manager at (301) 492-8430.

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Sincerely, i

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A. Schwencer, Ch ef Licensing Branch No. 2 Division of Licensing 9

Enclosure:

Request for Additional Information cc w/ encl:

See next page a

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Mr. Dalwyn R Davkdson Vice President, Engineering The Cleveland Electric Illuminating Company P. O. Box 5000-Cleveland,e0hio 44101

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cc: Gerald Charnoff, Esq.

Shaw, Pittman, Potts & Trowbridge 1800 M Street, N. W.

Washington, D. C. 20006 Donald H. Hauser,' Esq.

The Cleveland Electric Illuminating Company. ~

P. 0. Box 5000 Cleveland, Ohio 44101 Resident Inspector's Office U.S.N.R.C.

Parmly at Center Road Perry, Ohio 44081 Donald T. Ezzone, Esq.

Assis. tant Prosecuting Attorney 105 Main. Street e

Lake County Administration Center Painesville, Ohio 44077 i

Tod J. Kenney 228 South College, Apt. A Bowling Green, Ohio 43402

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Daniel D. Wilt Wegman, Hesil'er & Vanderberg 7301 Chippewa Road, Suite 102 Brecksville, Ohio 44141 Robert Alexander OCRE Interim Representative.

2030 Portsmouth Street Suite 2 Houston Texas 77098 Terry lodge, Esq.

915 Spitzer Building Toledo, Ohio.43604 7

4 i

O REdUEST FOR FINANCIAL INFORMATION O

320.0 320.1.

a.

Indicate the estimated annual cost by year to operate each unit of the subject facility for the first seven full years of each unit's commercial operation.

The types 'of costs included in the estimates should be indicated and include (but not necessarily be limited to) operation and maintenance expense

.(with fuel costs shown separately), depreciation, taxes and a reasonable return on investment.

(Enclosed is a form which should be used for each year of the seven year period.)

Indicate the projected plant capacity factor (in percent) for each unit during each of the seven years.

Provide separate estimates using 50 percent and 60 percent plant capacity factors.

b.

Indicate the unit price per kWh experienced by each applicant on systen-wide sales of electric power to all customers for the most recent 12-month period.

j 320.2.

Indicate the estimated costs of permanently shutting down each unit of the facility, stating what is included in such costs, the assumptions I

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2 made in estimating the costs, the type of shutdown contemplated, and the~ intended source of funds to cover these costs.

320.3.

Provide an estimate of the annual cost to maintain each unit of-the shutdown facility in a safe condition.

Indicate what is_ included in the estimate, assumptions made in estimating costs, and the intended source of funds to cover these costs.

f 320.4.

If the facility is jointly-owned provide copies of the joint participation agreement setting forth the procedures by which the applicants will share operating expenses and decommissioning costs.

The following financial ir.forimation is required for each investor-owned participant:

320.5.

Provide copies of the prospectus for the most recent security issue and copies of the most recent SEC Form 10-X and 10-Q.

Provide copies of the preliminary prospectus for any pending security issue. Submit copies of the Annual Report to Stockholders each year as required by,10 CFR 50.71(b)~

320.6.

Describe aspects of its regulatory environment including, but not necessarily limited to, the following:

prescribed treatment of allowance for funds used during construction; rate base (original

' cost, fair value, other); accounting for deferred income taxes and' G

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investment tax' credits; fuel adjustment clauses in effect or proposed; historical, partially projected, or fully projected test year.

320.7.

Describ~e the nature and amount of its most recent rate relief action (s). In addition, indicate the natu: e and amount of any pending rate relief action (s).

Use the attached form to provide J

this information.

Provide copies of the submitted, financially related testimony and exhibits of the staff and cdmpany in the most recent rate relief action or pending action.

Furnish copies of the hearing examiner's report and recommendation, and final opinion last. issued with respect to each participant, including all financially-related exhibits referred to therein.

320.8.

Completa the enclosed form entitled, " Financial Statistics," for the most recent twelve-month period and for the previous three calendar years.

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1.a.

ATTACHMENT FOR ITEM NO.

ESTIMATED ANNUAL COST OF OPERATING fiUCIEAR GENERATING UNIT:'

FOR THE CALEtiDAR YEAR 19 _

(thousands of dollars)

Operation and maintenance expenses riuclear power generation huclear fuel expense (plant factor

%)...........S Other operating expenses............... '......

Maintenance expenses........................

Total nuclear power generation.............

Transmission expenses.........................

Administrative and general expenses Property and liability insurance.................

Other A.8G. expenses.......................

Total A.&G. expenses.....................

TOTAL O&M EXPENSES.....................

Depreci ation expense.........................

Taxes other than income taxes Property taxes................:

Other................................

Total taxes other than income taxes...........

I n come ta x es - Fe d e ra l........................

Income taxes - other.........................

Deferred income taxes - net......................

Investment tax credit adjustments - net................

Return (rate of return:

%)..................

TOTAL ANNUAL COST OF OPERATION e

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ATTACH'1EliT FOR ITER 1140.

7 RATE DEVELOPIiEliTS_

8 El'ctric Gas Steam e

Granted Test year utilized Annual amount of revenue increase requested-

?

test year basis (000's)

Date petition filed Annual amount of revenue increase allowed-c.

test year basis (000's)

[

o Percent increase in revenues allowed Date of final order Effective date Rate base finding (000's) g Construction work in progress included in i

Rate base (.000's)

Rate of return on rate base authorized Rate of return on comon 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) t Pendina Reauests Test year utilized Amount (000's)

Percent increase Date petition filed Date by which decision must be issued Rate of return on' rate base requested Rate of return on comon equity requested Amount of rate base requested Amount of construction work in progress requested for inclusion in rate base

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ATTACHMCNT FOR ITEM No.

8 FINANCIAL STATISTICS 12 months' ended

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(dollars in millions)

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

Gross income (both including and excluding AFDC) + current and 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 Market price of comon Book value of comon Market-book ratio (end of period)*

Earnings avail, for common less AFDC +

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

deferred.

Comnon dividends Ratio Short-tepn debt Bank loans Comnercial paper Capitalization (Amount & Percent)

']

Long-term debt Preferred stock Co.non equity 9

• If subsidiary company, use parent's data.

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mD Q E(p u,%'q UNITED STATES

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NUCLEAR REGULATORY COMMISSION

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WASHINGTON, D. C. 20555

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Docket Nos. 50-440 and 50-441

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Mr. Dalwyn R. Davidson Vice President - Engineering The Cleveland Electric Illuminating Company Post Office Box 5000 Cleveland, Ohio 44101

Dear Mr. Davidson:

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Subject:

Request for Additional Information -

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Perry Nuclear Power Plant, Unit 1 & 2 gua Abis/$ air, h 4 x c.+ /

r In the performance of the Perry licensing revie staff has identified

. additional concerns in regard to.7 -- --.

- The information that we require is identified in the enclosure. " '. '

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R heu.ra b We request that you provide the information not later than : __.i_~

., 198 C If you require any clarification of this request, please contact M. D. Houston, Project Manager at (301) 492-8430.

Sincerelyr

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A. Schwencer, Chief Licensing Branch No. 2 Division of Licensing

Enclosure:

Request for Additional Information cc w/ encl:

See next page N)

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