ML20085D266

Forwards Summary in Outline Form of Historical,Regulatory & Timing Aspects of Merger & Naesco Transactions,In Accordance W/Commitment

ML20085D266
Person / Time
Site:	Seabrook
Issue date:	09/10/1991
From:	Feigenbaum T PUBLIC SERVICE CO. OF NEW HAMPSHIRE
To:	Edison G Office of Nuclear Reactor Regulation
References
NYN-91144, NUDOCS 9110150396
Download: ML20085D266 (8)

Text

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' New Hampshire .

1sd C. FengsnSewm Pseudent and CNel tsetu'he Qi(ker NYl4* 91144 September 10, 1991 Mr. Oordon E. Edison, lentor Project Manager Project Directorate 13

'Divislots of Reacter Projects

' United States Nuclear Rcgulatory Cocamission Washington, D.C 10555

Reference:

Facility Operating License No. NPF.86, Docket No. 50 443

!!ubje ct: NU/PSNH Morger and NAESCO Summary Dast Mr. Edison:

In steerdance with our commitment to provide you with periodic updates, enclosed please find a summary in outline form of the historical, regulatory and timin5 *sitcts of the inerger and NAESCO transactions.

If you have any further questions, please contact Mr. Terry L. Harpster. Director of 1,1 censing sr-evice.s, at (603) 474 9521 cuension 2765.

Very truly yours, C[#f Ted C. Feigtopfum E ncicsure TCP:JBH/ss New Hampshire Yonkee Didsion of PaWic Servico Gwnpony of New Harrps'mre P.O. Box 300

• Leabrook, t+t 03B74 + Telephone (603) 474 9521

/

9 I gh d roa nooen 05000443 Pon / g 1

Ositted Sintes Nuclear Regulatory Comsnisalon Sc ptciebcr 10, 1991 Mr. Gorden E. EdlAon PBgt LWO Attention:

cc: Mr. Thomas T. Mattia Regional Adtninistrator United States Nuc!ce Regulator y Cotamiss'.ou Region !

475 Allendale Road King cf Pruttia, PA 19406 Document Control Desk U.S. Nucitar Regulatory Commlulon Wuhtogton, DC 10555 Mr. Noel Dudley NRC Senior Realdent lospector P.O. Box 1149 Scabrook, N11 03874

t tiew Hampshiro Yankes September 10, 1991 ENCLOSURE TO flYS91144 l

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• I. Miatorical Backaround - Bankruptpy Caan  !

A. 1/98 - PSNH files for bankruptcy B. 3/89 - NU files Plan of Reorganization (the

" Plan") i

c. 11/89 - Uncoeured creditors and Equity Committees support NU Plan t D. 12/89 - PSHH supports NU Plan; NH Legisla _ a

'i passes legislation allowing inpleaentation of NU. Plan  ;

E, 3/90 - NU Plan approved by PSNH creditors and shareholders

r. 4/90 - Bankruptcy Court confirms Plan G. 5/90 - PSNH emerges from bankruptcy as .

freestanding company, subject to Merger.

Agreement with NU II. acquiatery Proceedinas A. Federal Eneggylequia.tgry Cernmission

1. Transfer of " jurisdictional assots' by PSNH requires FERC-approval

2. Capacity Transfer Agreements, NU Systems Sharing Agreement and Seabrook Power Contract must be filed with FERC

. 3. 12/20/90 - PERC ALJ approvoo Merger and contracts with conditions  ;

4. 0/9/91 - TERC-issues final decision approving Merger but with transmission -

wheeling conditions more stringent than in

'ALJ' decision 5.. NH, Conn., and NU to seek rehearing

6. Rehearing request deadline was 9/9/91

7. In hearing order, FERC acknowledged 1/1/92 "

i termination of merger proposal unlean extended by NO and PSNH l

.,..2.._ _ . = _ _ _ . _ . . _ _ _ _ . . _ . . . . _ . - . . . ~ . . _

B. coeurition and Exchance Cemmissior

1. Marger Transactions ,

a. Merger and related financings and other trancactiono require OEC approval under Public Utility Holding Ccmpany Act of 1935

b. SEC decision approving Merger and related financing transections and reserving jurisdictjen over others (Step two fincncings and costi f Merger) issued 12/21/90

c. SEC supplemental decision conditioning opproval of Merger on FERC approval issued 3/15/91

d. Appeal of deciciono pending in U.S.

Court of Appoals for District of Columbia Circuit

e. Application for reserved jurisdiction transactione (Step Two financings and costs of Merger) to be filed in near futuru

2. NAESCO Transactions

a. Organir.ation and conduct of business of North Atlantic Energy Service Corporation ("NAESC0"), the new Seabrook operator, requires SEC approval under 1935 Act l

b. Application for necessary approvals filed 1/14/91

c. Order expected Fall, 1991 C. Eggig.ar.,,JARMlplory Commis r.lon_

1. Transfer of PSNH ownership in Sombrock to North Atlantic Energy Corporation ("NAEC")

and transfer of control of PSNH cwnership interest in Millstone 3 nood NRC approval

2. Change of Seabrook operator from PSNH to p hhESCO also needa NRC approval, but that l

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change covered by application to NRC is naparate from ownership application

3. Approvain of Seabrook transfer of ownership and Millstone 3 transfer of control needed in sufficient time to : lose <

Merger soon after 'ERC decision on  !

rehearing requests J

4. NRC approvals needed'in sufficient time to support Merger and complation of PSNH Plan of Heerganization

5. NRC can proceed with antitrust review on.

basis of PERC record to date as it did in Pacif1 Corp / Utah Power and Light merger -

D. New Maranshire P.gblic_U1111 ting..Cppnig. sign

1. NHPUC approval needed for Rate Agreement, transfer of PSNH's Seabrook interest, PSNH and NAEC financings, NAESCO and NAEC commenennent of businens and NU intra-system contracts i

2. NHPUC issued order granting all above approvals, except those relating to NAEC financings, en 7/20/90

3. Approval of NAEC financing to be applied for toon

4. Issuance of NAESCO common stock to NU approved 8/27/91

5. NHPUC has begun proceedings to assess impact of TERC deciGion E, cennecticut Deenrtment of Public Utility Contrcl

1. NU has committed'not to go forward with Merger if DPUC objects

2. DPUC has testified in support of Morgor at PERC 3 DPUC review of Merger benefita, in light of FERC decision, currently schedulod to-be conducted in October

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. jw= ; M DPUC decision expected by late November.

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1991 11 FERC rehearing decision by thun

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$._ DPUC 7ajection blocks Marcor M

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F. Ye rmoli.t , , P.Qbl i c Je rvi ce tio o rf

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~ #y J.' 3. PsN!! ownership in Vermont Yankee and Vermont t.ranumissisn facilities may have given VPSB 1; -

% . -%.t jurisdict a over finaricings and Merger transactions g

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2. VPSD approved finar'aings in 1990 bnd Merger '

tre.nsections on 7/3';/51

3. No f'.arther approvalo requi?90

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tin 1NLER.211S.jlii1i t i e n cJmi e o ion

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1. PsN11 owneranip in Maine generbr.ing planto ,

and trentmission facilities nay have given MPUC jurisdiction over financings and McIPut transactiond t MPUC 1ssued ordara approving or exempting from appro cl financings and Morger tranr.e:tions in 1990 and en 2/5/91

3. No further approvalD required J1~. 51.DilmRtLS.QIi1T.G.G.2 g A. Agreemen*, needed to appoint. HAESCO, a wholly- p owned subsidiary of HU, an operator and .

Dis;bu;.ning Acant for Seabrook approved 1/19/90 D. Joint owners with ownership sharen totalling 70 R haue ap3 roved chengo in operator and ciaburning Agmt p' irs.lant to '/~19-90 Agreement.

Joint ownership Ag':e mont among Joint Ownere only requires a al% vota o approve these changee IV, 'rlmiD.R j A. v.etger Agreement allows either HU or PEN 11 pont.d ['

at Directors to terminato Mcrger Agrooment. If Morger not consummated by 12/31/91 <

L. While Morger Agreement can be extended by agrccmcat of. NU and TENU, <" rly consun.rnation

_ . a

~5-cott.pletor Mcond Step of reorganization of PSNH and brings greater stab 111ty to PSNH's financitl condition C. Aino, early consumnation of change in operator

• would have a positAve impact on rale at Seabrook nuclear and would allow botter utilization c1 NU resources

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