ML20080J131
| ML20080J131 | |
| Person / Time | |
|---|---|
| Site: | Hatch, Vogtle, 05000000 |
| Issue date: | 02/10/1984 |
| From: | Adams L, Vazquez R MUNICIPAL ELECTRICAL AUTHORITY OF GEORGIA |
| To: | Adensam E Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML20080J134 | List: |
| References | |
| GN-316, NUDOCS 8402140453 | |
| Download: ML20080J131 (4) | |
Text
MUNICIPAL ELECTRIC AUTHORITY OF OEORGE A i'
1470 Rrveredge i'arkway, Atlanta, Georgia 30328 (404) 952-5445 February 10, 1984 Direct 5rofNuclearReactorRegulation ATIN:
'Ms. E. G. Adensam Chief, Licensing Branch No. 4 Division of Licensing United States Nuclear Regulatory Comnission i
Washington, D.C. 20555 File: X6BC01 Ing:
GN-316 I,
Re: NRC Dockets Numbers 50-424 and 50-425; Construction Permit Numbers CPPR-108 and CPPR-109; Vogtle Electric Generating Plant, Units Number 1 and Ntaber 2
Dear Madam:
W is letter outlines the financial plans of the Municipal Electric Authority of Georgla (the " Authority") for financing construction of generating facilities which we jointly own with Oglethorpe Power Corpo-ration, Georgia Power Ccupany and the City of Dalton, including the
.- Vogtle Electric Generating Plant, and includes a number of attachments for your information in regard to the above dockets, and relating to the financial qualifications of the Authority with respect to consider-ation of the application for the amendment of the Construction Permits dated June 28, 1974.
'Ihe Authority presently has three projects and a fourth project which is the subject of this proceeding. The facilities being financed under each project are as follows:
Project One Authority Facility Ownership %
Status Hatch Nuclear Plant-Two Units 17.7 In Service Wansley Steam Plant-Two Units 10.0 In Service Vogtle Electric Generating Plant-Two Units 17.7 Under Construction Scherer Steam Plant-Units No. 1 and No. 2 10.0 In Service (l.>
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. l In addition to these generating facilities, the Authority is financing f
the purchase aM construction of transmission facilities under Project One.
Project Two Authority Facility Ownership %
Status l
Wansley Steam Plant-Two Units 5.1 In Service Scherer Steam Plant-Units No. I and No. 2 5.1 In Service Project % ree Authority Facility Ownership %
Status Scherer Steam Plant-Units No. 1 and No. 2 15.1 In Service Proposed Project Four Authority Facility Ownership %
Status Vogtle Electric Generating Plant-Two Units 5
Under Construction he Authority is a public corporation and an instrumentality of the State of Georgia and was created by an Act of the 1975 Session of the General Assembly of the State of Georgia to supply electricity to municipal distribution systems.
Pursuant to the Act, a copy of which is provided herewith, the Authority is empowered to issue tax-exempt Power Revenue Bonds to finance the purchase of generation and transmis-sion facilities.
Acquisition of Project One facilities is financed by the issuance of revenue bonds pursuant to the Power Revenue Bond Resolution adoptcd August 30, 1976, as subsequently amended.
Bonds in an aggregate principal amount of $3,725,000,000 have been validated for Project One.
Bonds totaling $1,250,000,000 have been issued to date under the Power Revenue Bond Resolution.
In addition, $125,000,000 intermediate-term and $155,910,000 short-term bond anticipation notes are outstanding.
L
r 1-f Acquisition of Project Two facilities and Project W ree facilities is financed by the issuance of revenue bonds pursuant to the General Power Revenue Bond Resolution adopted April 19, 1978.
Bonds in an aggregate principal amunt of $260,000,000 have been validated for Project Two, of which $100,000,000 have been issued to date.
In addition, $12,250,000 in bond anticipation notes are outstanding for Project Two.
Bonds in the principal amount of $300,000,000 have been validated for Project Three, of which $150,000,000 are outstanding. In addition, $72,625,000 in bond anticipation notes are outstanding for Project Wree.
The Authority plans to finance Project Four through the validation c.nd issuance of additional bonds under the General Power Revenue Bond Resolution.
We resolutions permit the issuance of additional bonds for certain purposes, including completion of the projects.
We Authority is authorized by the Act and required under the resolutions to charge and collect rates to prcnide revenues sufficient, together with other available funds pledged under the resolution, to pay all costs associated with the projects, including debt service.
The Authority's bonds issued to finance its Projects are rated Al by Moody's Investors Service, Inc. and AA(-) by Standard & Poor's Cor-poration.
Forty-six cities and one county (the Participants) of the State of Georgia have contracted for power with the Authority.
The Authority has entered into a Project One Power Sales Contract, a Project Two Power Sales Contract, a Project Three Power Sales Contract and a Project Four Power Sales Contract with each Participant. Each contract provides that the Participant is obligated to pay for the output and services of the projects in accordance with preaetermined formulas and rates established and maintained by the Authority which will provide revenues sufficient to pay all the Authority's costs associated with the projects, including debt service unless provided for from bond proceeds.
Paym1nts are required to be made by the Part.icipants whether or not the projects, or any parts thereof, are completed or are then operating or operable. Each power sales contract will continue in full force and effect at least until such time, not to exceed 50 years, as all bonds have been paid or provision has been made for their payment.
In proceedings relating to the validation of bonds for Projects One, Two and %ree, the courts concluded that each Participant's payment obligations under the power sales contracts are general obligations to the payment of which its full faith and credit are pledged.
Each Participant has covenanted to maintain and collect rates to provide revenues sufficient to make such payments.
if payment is not made fram electric system revenues or funds, the Participant is required to include in its general revenue or appropriation measure sums sufficient to make required payments under the contracts.
, W e Authority has a revolving credit and term loan agreement with a consortium of banks which allows the Authority to borrow up to
$50,000,000 in term advances anci S100,000,000 in revolving credit advances until March 31, 1986.
Advances under this line of credit can be used for cost of acquisition and construction of the projects.
In addition to these bank lines, the Authority utilizes the issuance of tax-exempt conmarcial paper as another means of financing nuclear fuel and other project costs.
We following information is subnitted herewith: - Detailed statenent of the Authority's financing plan for its ownership share of Plant Vogtle; - Authority's Investment in Plant Vogtle at February 10, 1984, and projected to closing of additional 5% interest; - Summary of Authority Financings; - Copy of Series I Official Statement and 1984A Series Official Statement; - Financial Statements; - Form of Project Four Power Sales Contract; - Vogtle Agreements; - The Authority's Bond Validations; - Statement on Requirement for S.E.C. Approval; and 0 - The Authority's Rate Fixing Power.
If you should require further infomation regarding our fi; incing plans, please call me.
Very truly yours, s M O.Ib y n
&dW, a.
Ronald O. Vazqudf s'
L. Clfflord Mams, Jr '
Director of Financial General Counsel Services cc:
Mr. Jim Peterson
,