ML20062C815

Forwards Responses Per NRC Request of 781102 Re Financial Quals Review of Becos Appl for Permit to Design & Constr Subj Facil.Info Supplied Concerns Beco Short Term Borrowings & Debt Interest Coverage

ML20062C815
Person / Time
Site:	05000471
Issue date:	11/07/1978
From:	Rhonda Butler BOSTON EDISON CO.
To:	Parr O Office of Nuclear Reactor Regulation
References
NUDOCS 7811140200
Download: ML20062C815 (8)

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BOSTCN EDISON CCMPANY cc~c=A6 orr.Ces saa sonarou sTaccT SQsTON# M A S S ACMu s ETT e 0 219 9

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.su LEAa Pg3 cts OEPARTMENT November 7, 1978 Mr. Olan D. Parr, Chief Light Water Reactors Branch #3 Division of Project Management -

Office of Nuclear Reactor Regulation U.S. Nuclear Regulatory Commission Washington, D.C.

20555 NRC Review of Financial Qualifications:

Further Submission of Infomation Reauested

Dear Sir:

On October 25, 1978, NRC telecopied to BECo a list entitled " Additional Information Requested to Proceed with Financial Qualifications Review of Boston Edison Company's Application for Permit to Design and Construct Pilgrim Unit 2."

This list, which included eleven items, was described by Mr. Licitra as the final request for information in your financial qualifications review. At this time we are supplying three more of the eleven items requested. We will provide the remaining four items when availabl e.

'he three responses, which are attached, are as follows:

Response #9.

" Boston Edison Company, Short Term Borrowings, September, 1978", dated 10/5/78.

(This is sub-mitted in response to NRC request #9 for a statement of short-term credit arrangements, indicating present limitations, use and avail-ability of funds, terms of repayments, compen-sating balance requirements and other pertinent information. )

Response #10. " Boston Edison Company, Financial Statistics" (This is submitted in response to NRC request

1. 10 for a revised statement of financial statis-tics incorporatin9 results of operations for year ended September 30, 1978, ref. Table VI-a-3 of Amendment #8.)

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. BOSTON EQlSON CCMPANY Olan D. Parr 2.

November 7, 1978 i

Response #11.." Boston Edison Company, Re: Debt Interest Coverage -

Indenture f*ethod, 12 months ended September 30, 1972."

(This is submitted in response to NRC request. #11 for a revised statement of debt interest coverage utilizing indenture methodology for 12 months ending September 30.

1978, ref. Table VI-a-5 of Amendment #8. )

Very truly yours,

/

..F )Y, D.<Y J_

Attachment 1

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RESPONSE #9 BOSTON EDISON COMPANY SHORT TERM BORROWINGS, SEPTEMBER, 1978

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O RESPONSE #10 BOSTON EDIS0N COMPANY FINANCIAL STATISTICS I

BOSTON EDISON COMPANY Financial Statistics (Millions) 12 Months Ended September 30, 1978 Earniugs available to common equity 32.9 Average Common Equity 353.2 Rate of return on average common equity 9.3 Times total interest earned before FIT:

Gross income (incl. AFDC) & current and deferred FIT -F total interest charges &

am;rtization of debt discount & expense 2.57 Tipes long-term interest earned before FIT:

Gross income (incl. AFDC) + current and I

deferred FIT -:- long-term interest charges and amortization of debt discount and expense 3.08 Bond ratings Standard and Poor's BBB Moody's Baa Times interest and preferred dividends earned af ter III:

Gross income (incl. AFDC) *- total interest charges + amortization of debt discount and expense + preferred dividends 1.45 AFUDC 14.8 Net income after preferred dividends

,32.9 Percent 45.0%

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Market price of common per share 25.5 Book value of common per share 30.83 FMrket-book ratio (end of period)

.83 Earnings available for common less AIDC +

depreciation and amortization, deferred taxes, and investments, tax credit adjustments deferred 108.5 Common dividends 28.1 Ratio 3.86 Short-term debt 79.2

- Bank loans Commercial Paper Capitalization (amount and percent)

Long-term debt (1)

$604.7 53.6%

Preferred Stock

$167.6 14.9%

Cocmon Equity

$355.6 31.5%

(1), Includes current portion of long term debt ($61.6) and excludes the nuclear fuel Icase obligation ($39.1).

RESPONSE 811 BOSTON EDISON COMPANY RE: DEBT INTEREST COVERAGE -

INDENTURE METHOD, 12 MONTHS ENDED SEPTEMBER 30, 1978

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BOSTON EDISON COMPANY RE: Debt Interest Coverage - Indenture Method 12 Months ended September 30, 1978 (000's)

Gross Operating Revenues

$617,877 Total Operating Expenses 525,562 92 315 Add: Depreciation 45,'673 137,988 Add: Other Income - Net

_ (1,507)

" Net Earnines" - (Amount available for Debt Interest Coverage)

$136,481 First Mortgage Bonds Outstanding ~9/30/78

$506,688

$ 39,523 Annual interest thereon Secured Notes Outstanding 9/30/78

$ 23,000 2,588 Annual interest thereon S 42,111 Total Times Interest Earned

$136,481 3.241

=

42,111 Indenture Fequirement 2.000 Net Earnings Available for issuance of additional Bonds Net Earnings

$136,481 i

Amount needed 9/30/78

($42,111) x 2) 84,222

-52,259

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Net Earnings available ($52,259 x

.50)

$ 26,130 Bonds issuible @ 10 1/2

$248,857

@ 10 1/4 254,926

@ 10 261,300 9 3/4 268,000

@ 9 1/2 275,052 9 1/4 282,486

@ 9 290,333

@ 8 3/4 298,628 l

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