ML20090A876
| ML20090A876 | |
| Person / Time | |
|---|---|
| Site: | Shoreham File:Long Island Lighting Company icon.png |
| Issue date: | 06/11/1984 |
| From: | Letsche K KIRKPATRICK & LOCKHART, SUFFOLK COUNTY, NY |
| To: | LONG ISLAND LIGHTING CO. |
| Shared Package | |
| ML20090A870 | List: |
| References | |
| OL-4, NUDOCS 8407120153 | |
| Download: ML20090A876 (25) | |
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EXHIBIT X UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION Before the Atomic Safety and Licensing Board j
)
In the Matter of )
) -
LONG ISLAND LIGHTING COMPANY )
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(Shoreham Nuclear Power Station, ) Docket No. 50-322-OL-4 Unit 1) ) (Low Power) '
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SUFFOLK COUNTY'S SECOND DISCOVERY REQUEST TO LILCO RELATING TO LILCO'S APPLICATION FOR EXEMPTION Suffolk County hereby requests that LILCO respond to the discovery requests set forth below. The definition of the term
" document" as used herein and other instructions concerning the response to the requests which follow, are the same as that set i forth on pages 1 and 2 of Attachment A of the letter dated April 11, 1984 from Douglas J. Scheidt to T.S. Ellis, III, a copy of which is attached hereto for convenience. The documents requested below are to be produced at the offices of Kirkpatrick, Lockhart, Hill, Christopher & Phillips, 1900 M Street, N.W., Washington, D.C., or at such otiter location as the parties may agree.
- 1. Identify all periodic financial reports prepared by LILCO since January 1, 1983 (such as, for example, financial statements, budgets, cash reports, cash flow analysis, and 8407120153 840709 DR ADOCK- 050003gy PDR
operations reports) and set forth, with respect to each such report, the distribution to which such a report is subject (such as, for example, to Board of Directors; Chief Executive Officer; Chief Financial Officer; members of senior management; treasurer's office; public filings:
lending banks etc., and furnish a copy of the most current version of each such report. ;
- 2. Without limiting the generality of the request contained in paragraph 1 hereof, produce copies of the following (on a monthly basis for the period January 1, 1984 through 4
December 31, 1985, and on an annual basis.thereafter):
(a) All' financial runs, reports, statements, analyses, 6 and other documents which show actual and projected cashflow, revenues, expenses, capitalized costs and capital expenses incurred or projected to be incurred >
by LILCO in connection with the following for Shoreham: :
(i) The acquisition, installation, and all activities required prior to full operation of Colt diesels;
f (ii) The acquisition of materials, constr uct ion.' and all activities related thereto, of Colt diesel
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building; t
(iii) all other construction activities relating to the Shoreham plant; (iv) Accomplishing each of the phases of LILCO's pro-posed fair part low power testing program; (v) Allowance for Funds Used in Construction
("AFUDC");
(vi) Personnel costs (whether expensed or capital-
.ized);
(vii) Deferred assets; and (viii) Post-completion capital.
(b) The balance sheet accounts for Shoreham, including gross plant, depreciation reserve, and deferred in- <
vestment tax credit; (c) Income statements and supporting tax computation,s for Shoreham:
i (d) Electric, gar,, and combined (electric and gas) income '!
statements, cupporting tax computations, balance sheets, cashflow statements, together with applicable input' sections, payroll and employee count; (e) Interest and dividend coverage computations.
- 3. Produce all documents constituting, analyzing, referring, or in any way relating to actual or projected impact on ,
LILCO's cashflow and/or its financial condition, of any existing interim, future interim, or permanent rate re-lief.
- 4. Identify all financial or economic models used by LILCO since January 1, 1983 (such as, for example, "Decom") in making financial projections or forecasts of LILCO's operations based on various .usumptions, and describe the input variables which are capable of being manipulated by each such model.
- 5. With respect to the " austerity plan" which LILCO reportedly implemented in February 1984:
(a) Produce all documents referring or in any w'ay relating to the austerity plan including, with-out limitation, all drafts of the plan, any
t predecessors to the plan, all accounting work papers and computer data concerning the plan or i any of its predecessors, and all financial ;
projections based on the austerity plan, or any I
draft or predecessor thereof; (b) Please furnish, in pro forma tabular form, a de-tailed comparison of the results of LILCO's i operations for each of its fiscal quarters since ;
February 1, 1984, together with projected year-end results, showing the effect of the presence and absence of the austerity plan on the results of LILCO's operations. The result-ing tables should be sufficiently detailed to permit the County, or its experts, to gauge the impact of the austerity plan on each line on LILCO's pro forma balance sheet, income state-ment, and statement of source and application of funds, which is affected by the austerity plan.
(c) Identify each component of the austerity plan as the plan is now being implemented. ,
- 6. With respect to statements reportedly made by Dr. Catacosinos at the LILCO Annual Meeting of Shareholders:
h (a) Produce all documents (including, without limi-tation, financial projections, supporting ac-counting work papers, and computer data) constituting, referring or in any way relating ;
to Dr. Catacosinos' reported statements to the i
effect that LILCO would have a cash deficit of (i) $20 million on or about September 1, 19E4, and (ii) $65 million by the end of the current calendar year. ,
(b) If the projected cash deficits referenced by Dr.
.Catacosinos already take into account the aus-terity plan which LILCO announced in February t 1984, identify the size of the projected defi- ;
cits in the absence of the implementation of the austerity plan, and provide copies of all documents relating to such projections.
1 (c) Identify every communication between any offi-cer, director, employee, or other agent or rep-resentative of LILCO (including, without limita-tion, LILCO's accountants and attorneys) and any other person concerning the reported willingness of any financial institution to " step forward"
if LILCO asks them for help, and produce all documents constituting, referring or in any way relating to such reported willingness.
(d) Set forth LILCO's casts tor Delieving that'any lender would " step forward" were LILCO to ask for help, and identify each lender as to which I
LILCO has formed such a belief.
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- 7. With respect to LILCO's current outstanding debt obliga-tions, provide the following:
(a) Copies of all debt instruments, loan agreements, revolving credit agreements, stand-by credit facilities; term loans; trust indentures, trust agreements; mortgages, or other evidence of liens or encumbrances, together with any amend-ments, modifications, extensions or waivers relating to any of the fo regoing , including, without limitation:
(i) All documents setting forth LILCO's "ar-rangements" with Tri-Counties Resources Trust (" Resources Trust") and Tri-Counties Construction Trust (" Construction Trust"),
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as described in Note 4 to LILCO's audited financial statements for fiscal year ending December 31, 1983 (" Note 4");
(ii) The first mortgage securing the Company's "First Mortgage Bonds," and all loan docu-mentation pertaining to such bonds; (iii) The mortgage securing the Company's
" General and Refunding Bonds" (the "G&R Mortgage"), and all loan documentation per-taining to such bonds; (iv) The Revolving Credit Agreements of both the Resources Trust and the Construction Trust; (v) The Revolving Credit Agreement referred to in Note 5 to the Company's audited 1983 fi-nancial statements (" Note 5"), and all documents pertaining to such an agreement; (vi) The Eurodollar Revolving Credit Agreement referred to in Note 5, and all documents pertaining to such an agreement;
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1 (vii) All documents pertaining to the "intermedi-ate term notes" referred to in Note 5; (viii) All documents pertaining to any unsecured short-term notes or commercial paper which LILCO may have issued since December 31, 1983.
(b) Identify each of the Company's lenders and the principal amount of debt outstanding to each such lender, including, without limitation:
(i) The banks Who are lenders to (A) The Resources Trust; and (B) The Construction Trust (ii) The-trustees, if any, of the First Mortgage and the G&R Mortgage (iii) The banks who are lenders under the Revolv-ing Credit Agreement referred to in Note 5 to the Company's audited 1983 financial statements; (iv) The banks who are lenders under the Eurodollar Revolving Credit Agreement referred to in Note 5; (v) The banks who are lenders under the " inter-mediate term notes" referred to in Note 5.
(c) -The amount of all debt outstanding, as of:
(i) December 31, 1983; (ii) the most recent date for which such infor-
> mation is available.
- 8. With respect to such of LILCO's preferred stock oustanding which carries mandatory redemption features (e.g., Par Value $100 per share, Series L, M, Q, R, and S, and Par Value $25 per share, Series 0, T, U, V and X), furnish copies of all documents which describe, set forth, or oth-erwise relate to the rights and preferences of the holders of such preferred stock.
- 9. Produce all documents constituting, referring or in any way relating to any communication between LILCO, or a,ny of its agents or representatives (including, without limita-tion, its attorneys, accountants, consultants or experts)
and any of LILCO's lenders (including, without limitation, the persons whose identity is sought in paragraph 7 hereof) and their respective agents or representatives (including, without limitation, their attorneys, accoun-tants, consultants or experts), since January 1, 1982 to date.
- 10. With respect to LILCO's participation in Nine Mile Point 2, produce all documents constituting, referring, or relating in any way to any agreements or understandings between LILCO and other cotenants in Nine Mile Point 2, including, without limitation:
(a) All documents referring or in any way relating to the surpension of payments by LILCO for con-struction of Nine Mile Point 2; (b) All documents constituting, referring, or in any way relating to (i) the notification by Niagara Mohawk (or any other cotenant) that it considers the Company to be in default of its obligations to other cotenants (including all the documents constituting the alleged obligations); and (ii) i Niagara Mohawk's (or any other cotenant's)
advice to the Company that it may institute litigation:
(c) All studies, analyses, reports, communications or other documents relating to any relationship between (i) LILCO's suspension of payments for Nine Mile Point 2, and (ii) LILCO's relationship with any of its creditors, or actions or re-sponses by any such creditors;
.(d) All documents constituting, referring or in any way relating to communications with other cotenants concerning LILCO's suspension of pay-ments for Nine Mile Point 2.
- 11. Provide copies of all documents analyzing, discussing, re-ferring or in any way relating to any voluntary or invol-untary bankruptcy of LILCO including, without limitation, the effect of such a proceeding on LILCO's pending Appli-cation for Exemption, or all or any portion of its request for a low power license.
- 12. Unless otherwise being produced in response hereto, produce all documents constituting, referring or in any way relating to, the advice by the banks, referenced in
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Note 4, that advances by LILCO to the Construction Trust in excess of the $500,000,000 advanced by the banks vio-lated provisions of the Trust agreements referred to in Note 4, and provide the following information for the period January 1, 1983 to date:
(a) The amounts of all LILCO advances to the Construction Trusts; (b) The dates on Which each such advance was made; and (c) The purpose for which each such advance was made.
- 13. With respect to the amendments to the Trust agreements referred to in Note 4, and unless otherwise being produced in response hereto, provide copies of: all documents constituting, referring or in any way relating to such amendments and provide the following information:
(a) With respect to each payment by either Trust of in-terest payments under the pertinent Credit Agreement, identify (i) the amount of the payment; ,
(ii) the date of the payment; and
(iii) the source of funds used for the payment.
(b) Identify the date, the amount, and the source of funds for each payment of (i) interest and (ii) principal, which became due, or will become due, under the Revolving Credit Agreements for both Trusts for the period January 1, 1983 through December 31, t
1985. .
- 14. With respect to the amendments to the Trust agreements referred to in Note 4, provide copies of the !ollowing:
(a) All documents constituting, referring or relating in any way to any communications with or from any bank since April 27, 1984 concerning such amendments; and (b) All documents constituting, referring or relating in any way to studies, analyses or reports concerning the relationship between any potential default under the Trust agreements and LILCO's relationships with any of its creditors.
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- 15. With respect to the statements made by LILCO in its Posi-tion Paper dated May 30, 1984 (at pages 47-48), state'the bases for, and provide copies of all documents constituting, referring or relating in any way to, any u
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studies, analyses or reports concerning the severity and breadth of the impact of a possible LILCO bankruptcy, including without limitation, the impact of such a possi-ble bankruptcy on:
(a) The credit of utilities throughout New York, any pos-sible higher financing costs, any possible higher prices of energy, and any possible higher costs of living and conducting business in New York State; (b) Utilities outside New York; (c) Alleged increases or interruption of services that consumers and businesses in Long Island would face; (d) The credit of New York State, its municipalities and its agencies, as well as the allegedly resulting in-crease in borrowing costs of the State; and (e) The allegedly precarious banking system and the al-legedly national and worldwide implications LILCO ,
contends would result.
- 16. With respect to LILCO's needs for financing during fiscal years ending 1984 and 1985, provide copies of the follow-ing:
(a) All documents constituting, referring, or relating in any way to such needs including, without limitation, internal LILCO communications as well as communica-tions with any lending institutions, investment bank-ers, investment advisers, and any governmental agencies; and (b) All documents constituting, referring or relating in any way to the relationship, if any, between LILCO's obtaining a low power license for all or any phases of LILCO's proposed low power testing program and its ability to obtain financing.
- 17. With respect to the statement in LILCO's Form 8-K dated February 21, 1984, that "the Company is evaluating the im-pact which any disallowance of the Shoreham costs will have on the Company's financial condition and operating results," produce all documents which constitute, refer or relate in any way to such an evaluation.
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- 18. The LILCO Position Paper of May 30, 1984 (at page 35) states:
"When the conclusions concerning Shoreham made by the PSC Staff for the Marburger Commission using a 60% capacity factor, are adjusted to 65% to achieve a valid compari-son, the penalty for not operating Shoreham -
increases to $14.9 billion."
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Please state the bases for such assertion and produce all studies, analyses, reports, computations, data, and other documents constituting, referring or relating in any way to such assertion. -
- 19. With respect to the assumption contained in the Position Paper (at page 50), "that LILCO is relieved of its past and future obligation for Nine Mile Point 2 and that its cash investment in that plant is returned to the Company," ,
provide copies of all documents constituting, referring or relating in any way to the potential assumption of LILCO's Nine Mile Point 2 obligations by any party other than LILCO.
- 20. With respect to the proposed settlement of the 'prudency case," described in the May 30, 1984 Position Paper (at pages 50-51), state LILCO's bases for the conclusion that "LILCO arrived at this amount after careful assessment of the contribution the Company could make toward rate reduc-tion considering the phase-in time and the rate increases proposed in this paper," and provide copies of all documents constituting, referring or in any way relating to the referenced " assessment".
- 21. Identify the number of full-time employee equivalents at Shoreham, by job title and employment shifts, necessary, or assumed to be available, to accomplish each of the four phases of low power testing identified in LILCO's Applica-tion for Exemption.
- 22. State the time at which, and the extent to which, LILCO '
began, or intends to commence, expensing (as opposed to capitalizing) personnel and other costs associated with Shoreham.
- 23. With respect to each of the four phases described in LILCO's Application for Exemption, identify:
(a) the monthly cashflow, capital expenditures and other expenses associated with each phase; (b) the anticipated re-sale value of nuclear fuel assemblies were Shoreham to be abandoned at the end of each phase; and (c) the cost, in real 1984 dollars, of decommissioning Shoreham at the end of each phase, and provide copies of all documents relating to the information sou'ght in (a), (b), or (c).
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- 24. LILCO's May 30, 1984 Position Paper (a t p. 46) states that the " effects of LILCO's financial crisis are being suffered . . . by its customers, who are subject to longer service response times and reduced customer service under the austerity plan; . . . State the basis for LILCO's assertion that its customers are being subjected to (a) longer service response times; and (b) reduced service, and provide copies of all documents constituting, refer-ring or relating in any way to the effect of the austerity plan on (a) longer service response time; and (b) reduced s service, or the relationship between the austerity program and (a) and (b).
- 25. Provide copies of all documents constituting, referring or relating in any way to:
(a) The purchase, sale, offer of purchase or sale of LILCO's gas system by Brooklyn Union Gas or any other person; (b) The purchase, sale, or offers of purchase or sale of <
any other LILCO assets, during the period January 1, 1984 to date; and 19 -
n (c) LILCO's suspension of property tax payments with respect to Shoreham.
- 26. Provide the following information as of January 1, 1982, and December 31, 1982:
(a) Anticipated completion date and cost (construction, AFUDC, total) for Shoreham.
(b) Anticipated completion date and LILCO share of the total cost for Nine Mile Point 2 (construction, AFUDC, total).
(c) Bond rating of LILCO.
(d) Cumulative-to-date expenditures for Shoreham (con-struction, AFUDC, total).
(e) Cumulative-to-date expenditures for Nine Mile Point 2 (construction, AFUDC, total).
(f) Capacity to issue additional long-term debt and preferred stock, based on coverage limitations.
(g) Common stock price and dividend payment rate.
- 27. Identify by name and title each of ficer (including each Vice President) and director of LILCO since January 1, t
1983, to date, including date of of fice and, in the ca,se of termination or resignation, the reason (s) therefor.
- 28. Provide copies of all insurance policies, agreements or other sources of financial protection, upon which LILCO relies for asserted compliance with 10 C.F.R. Part 140.
Respectfully submitted, Martin Bradley Ashare Guffolk County Department of Law Veterans Memorial Highway Hauppauge, New York, 11788 e /
h y,d.,,y Law'r yce Coe Lanp, Met Karls J. Letschy Cherif Sedky KIRKPATRICK, LOCKHART, HILL CHRISTOPHER a PHILLIPS 1900 M Street, N.W., Suite 800 Washington, D.C. 20036 Attorneys for Suf folk County DATED: June 11, 1984
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WAC HIN G TO N. O. C.
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LOS ANGELC5.CAuFORNI A TghtP,wCNE 804 788 8200 RALE'ON. NORTM CAROLINA _ _ ,
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1 July 3, 1984 l
BY TELECOPIER Lawrence Coe Lanpher, Esq.
Cherif Sedky, Esq. t Kirkpatrick, Lockhart, Hill, i Christopher and Phillips 1900 13 Street, N.W.
- Washing ton, D.C. 20036-Low Power Proceedings: Discovery
Dear Larry and Cherif:
Today I received Larry's July 2, 1984 letter with various attachments identified in paragraph 6 of his letter (I -
had received the letter without attachments by telecopier yesterday). Among those attachments was a May 29, 1984 letter to Larry from Michael Dirmeier with a six page report entitled )
"Long Island Lighting Company, Analysis of Financial Condition '
Prior to Low-Power Testing, June,1984." My reading of the report prompts several questions. .
l First, is there "more to come" as indicated by a handwritten note on the last page? Unless Messrs. Dirmeier and 1
I Madan do not intend to testify, I will appreciate your producing as promptly as possible any further additions, revisions or changes to this report.
Second, certain conclusions are expressed in the report. Other " preliminary thoughts" were expressed in th.e -
depositions of Messrs. Madan and Dirmeier. It appears that the subject of the preliminary opinions thus far disclosed are within the ambit of the Licensing Board's June 22 ruling Nevertheless, becauseon I LILCO's do not wantMotion for Protective to trust my assumptions,Order. I would appreciate your advice as to whether Messrs. Madan and Dirmeier are still
o O Lawrence Coe Lanpher, Esq.
Cnerif Sedky, Esq.
July 3, 1984 Page 2 l
expected to testify in the low power prcceedings and, if so, what will be the subject matter of any expected testimony, the substance of any expected testimony and the basis for any opinions to be expressed.
I look forward to your response. I will be in the office tomorrow (at least in the morning).
Sin re (ourr, R e . olfe 177/885 i cc: Edwin J. Reis, Esq.
Fabian G. Palomino, Esq.
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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION Before The Atomic Safety And Licensing Board l
. 1
)
In the Matter of )
)
LONG ISLAND LIGHTING COMPANY ) Docket No. 50-322-OL-4
) (Low Power)
(Shoreham Nuclear Power Station, )
Unit 1) ) -
)
CERTIFICATE OF SERVICE I hereby a certify th't copies of Suffolk County Motion in Limine on the Admissibility of Evidence Relating to Public Interest have been served on the following by U.S. mail, first class, except where noted, this 9th day of July, 1984.
l Judge Marshall E. Miller, Chairman
- Edwin Reis, Esq.
Atomic Safety and Licensing Board Counsel for NRC Staff U.S. Nucl= ar Regulatory Commission Office of the Executive Legal Washington, D.C. 20555 Director i U.S. Nuclear Regulatory Commissl Judge Glenn O. Bright Washington, D.C. 20555 l Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Edward M. Barrett, Esq.
Washington, D.C. 20555 Long Island Lighting Company 250 Old Country Road
- Eleanor L. Frucci, Esq. Veterans Memorial Highway Atomic Safety and Licensing Board Hauppauge, New York 1.' 6S U.S. Nuclear Regulatory Commission Washington, D.C. 20555
- By hand-
- By Federal Express
- By Telecopier' l
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- Fabian Palomino, Esq. James B. Dougherty, Esq.
Special Counsel to the Governor 3045 Porter Street, N.W.
Executive Chamber Washington, D.C. 20008 Room 229 State Capitol Mr. Brian McCaffrey Albany, New York 12224 Long Island Lighting Company Shoreham Nuclear Power Station
- W. Taylor Reveley, III, Esq. P.O. Box 618 Anthony F. Earley, Jr., Esq. North Country Road Robert M. Rolfe, Esq. Wading River, New York 11792 Hunton & Williams l P.O. Box 1535 .
Jay Dunkleberger, Esq.
707 East Main Street New York State Energy Office Richmond, Virginia 23212 Agency Building 2 Empire State Plaza Mr. Martin Suubert Albany, New York 12223 c/o Congressman William Carney 1113 Longworth House Office Bldg. Stephen B. Latham, Esq.
Washington, D.C. 20515 John F. Shea, Esq.
Twomey, Latham and Shea Martin Bradley Ashare, Esq. 33 West Second Street Suffolk County Attorney Riverhead, New York 11901 H. Lee Dennison Building veterans Memorial Highway , Docketing and Service Branch Hauppauge, New York 11788 Office of the Secretary
.i U.S. Nuclear Regulatory .
Commission Washington, D.C. 20555
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Karla J. Letsc .
KIRKPATRICK, CCKHART, HILL, CHRISTOPHER & PHILLIPS 1900 M Street. N.W., Suite 800 Washington, D.C. 20036 l DATE: July 9. 1984 l
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