ML20070T043
| ML20070T043 | |
| Person / Time | |
|---|---|
| Site: | Zimmer |
| Issue date: | 01/31/1983 |
| From: | Dickhoner W CINCINNATI GAS & ELECTRIC CO. |
| To: | James Keppler NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION III) |
| References | |
| NUDOCS 8302080169 | |
| Download: ML20070T043 (3) | |
Text
,
M THE CINCINNATI GAS & ELECTRIC COMPANY tat-CINCINN ATB, OHIO 45201 F
PRINCIPAL STAFF W. H. DICKHON ER 4' $l t t lhYYb!
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January 31, 1983
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PA0 FEDERAL EXPRESS i)P r,P.P DEPF,05 51 0 OtsTP U. S. Nuclear Regulatory Commission P.L Region III OL (d!
l 799 Roosevelt Road Glen Ellyn, Illinois 60137 Attention:
Mr. James G. Keppler Regional Administrator Gentlemen:
Re:
Wm. H. Zimmer Nuclear Power Station, Unit 1, Order to Show Cause and Order Immediately Suspending Construction, Docket No. 50-358, Clarifying Information In response to the request by Mr. Stephen H. Lewis, Region III Counsel, for clarification as to the relationship between Dillon, Read & Co.,
Inc. and the Bechtel family, enclosed is the Bechtel Power Corporation's response to the six questions posed by the NRC on January 26, 1983.
Please feel free to contact me if any further information is required on this subject.
Yours very truly, THE CINCINNATI GAS & ELECTRIC COMPANY L ^ =w By W. H. Dickhoner WHD:vm Enclosure cc:
Mr. Stephen H. Lewis 0
8302080169 830131
,a'FF R 219 2 PDR ADOCK 05000358 O
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BechtelPowerCorporation s
777 East EsenhowerPa,kway Ann A,cor.uieneen
- E ww e.o annicoa,un4,w,,%uotos January 31, 1983 i
Mr. William H. Dic'thoner President cincinnati Gas & Electric 139 E. Pourth Strea'.
. Cincinnati, OH 45202 Re:
15697 - Cincinnati Gas & Electric Zimmer Project Dillon, Read & Co. Inc.
Dear Mr. Dickhoner:
The following answers the questions posed to Cincinnati Gas &
Electric by the Nuclear Regulatory Commission in response to 4
requests f rom GAP.
1.
What percentage of Sequoia Ventures Inc. is owned by the L
Bechtel family?
The Bechtel f amily is the majority shareholder of Sequoia Ventures Inc.
r 2.
What percentage of Dillon, Read & Co. Inc. is owned by
'h.
Sequoia Ventures Inc.?
Sequoia Ventures Inc. is the majority shareholder of I
Dillon, Read & Co. Inc.
j' 3.
Is sequoia Ventures Inc, entitled, by virtue of its stake
.[i in Dillon, Read & Co. Inc. to r_ominate more than 3 of the 22 Dillon, Read & Co. Inc. directors?
I' Yes.
4.
Does Dillon, Read & Co. Inc. expect in the f uture to th underwrite debt or equity of Dayton Power & Light, ci Cincinnati Gas & Electric, or American Electric: Power?
~['
There are no firm commitments, but Dillon, Read & Co.
'l Inc. would not f orgo an opportunity to provide services to these utilities.
5.
When Dillon, Read & Co.' Inc. has underwritten debt or l
equity of the Dayton Power & Light, Cincinnati Gas &
Electric or American Electric Power, has it done so on a 3
guaranteed price or best efforts basis, i.e., could
n!!!;; n,aigr-secntei eower corporation Page 2 Dillon, Read & Co. Inc. have a financial loss if an issue
't in Dillon, Read & Co. Inc.'s portfolio became unsaleable or less attractive due to Bechtel activities or recommenda-
'l tions in connection with the Zimmer project?
i Any services perf ormed by Dillon, Read 6 Co. Inc. f or Dayton PcWer & Light, Cincinnati Gas & Electric and i-American Electric Power have been firm underwritings; i
Dillon, Read & Co. Inc. has not bought the securities for 4
investment but has immediately resold them.
- Normally, i
resale occurs within 24 hours2.777778e-4 days <br />0.00667 hours <br />3.968254e-5 weeks <br />9.132e-6 months <br /> or at the most, within one 1
week.
Should Dillon, Read 6 Co. Inc. undertuke underwriting services f or these clients in the f uture, it is difficult to speculate the impct of any of Bechtel's
?
Zimmer project activities on Dil4on, Read & Co. Inc.'s financial position, but it would be remote and inconsequen-i tial.
Also, as an investment banker, Dillon, Road & Co.
i Inc. is subject to stringent disclosure instructions which would prevent it f rom using inf ormation about the Zimmer project learned from Bechtel.
In any event, Bechtel has no intention of permitting the financial interests cd Dillon, i
Read & Co. Inc. to interf ere with the independent exercise i
of its judgment as a prof essional engineering firm.
i 1
It should be restated that neither Bechtel Power Corporation, it shareholders, Bechtel Group, Inc., nor any
- I of Bechtel Group, Inc.'s subsidiaries owns any shares in 1:
Dillon, Read & Co. Inc.
l 6.
What percentage of Dillon, Read & Co. Inc.'s business is i:
represented by the underwriting of debt or equity of Dayton Power & Light, Cincinnati Gas & Electric, and American i
Electric Power over the last three years?
1 1980:
less than 1%
1981:
less than 14 i'
1982:
less than 14 l
I believe this answers all of the questions p.roposed.
If I can 1:
be of any f urther assistance, please advise me.
(
very truly yours, R.W. Wahl Vice President and General Manager BWW: MPH: clh i
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