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Waslaington Public Power Supply System A JOINT OPERATING AGENCY ATTACHMEtiT 3 c<__:.
l b P. O. 00X tt4 301 FIFTH AVE.
RICHL AND.WASHINGTO N M352 T ELE PHON C (57DTib$t41 April 25, 1973 Hr. Abraham Braitaan, Chief Office of Antitrust and Indemnity Directorate of Licensing U. S. Atomic Energy Comission Washington, D. C.
20545
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Subject:
WASHI!!GTON PUBLIC POWER SUPPLY SYSTEM WPPSS !!UCLEAR PROJECT !!0.1 A?(TITRUST REVIEW FOR LWP-1 1.cference :
Letter, Directorate of Licensing to J. J. Stein, April 3,1973.-
Dear Mr. Braitman;
'The reference letter requested infomatien for antitrust review in response to Item 9 of Appendix L to 10 CFR 50.
Item 9 requests Oformation on "ncn-affiliated" electric utility systems witn peak loads smaller than applicant's which serve either at wholesale or retail adjacent to areas served by the applicant.
In view of the special circumstances of the Washington Public Power Supply System (WPPSS) and WPPSS Nuclear Project flo.1 in particular, as well as the unique nature of Pacific Northwest Power planning in general, most of the twenty Items (including tio. 9) in 10 CFR 50 Appendix L would not appear to be directly applicable, nor would en nttempted literal response appear to meet the needs of the anti-trust review.
1:?PSS is a nunicipal corporation of the State of Washington which is engaged in the generttien of electric energy.
WPPSS does not engage in distribution or retail operations.
The proposed WPPSS 1:ucicar Project No.1 is plant number 6 of the Hydro-Thermal program, a coordinated planning effort by four Northwest investor owned utilities,104 public and consumer osned agencies, and the Bonneville Power Administration, all acting as the Joint Power Planning Council.
.Hr. I!rattman page 2 April 25,1973 WPPSS th clear Project flo.1 will be owned by the UPPSS, comprised of
. 21 public and consumer owned agencies of the State of Washington.
The project's capability was offered to all utiln.ies in the Northwest which participate in the Joint Pcwer Planning Council and is being purchased by'104 public and consumer owned agencies through " net.illing" agreerrants and by 5 investor owned corpanies hrough " exchange" og sements.
With this background, lir. Joseph B. Knotts, Jr., counsel for the Supply System, contacted your office and, in turn, the Department of Justice, for clarification and guidance as to appropriate responses.
The Justice Department's reply, uhich is attached (attachment A), suggests that our response to Item 9 be limited, pending further notice, to a map shoaing all non-affiliated systems.
In accordance with that suggestion, which we ur.derstand is agreeable to your office, we are submitting the following information to facilitate the antitrust myiew:
Letter Subject Description Atta ch r.cnt A
Justice Department.
Suggested approach for Letter to lir. Knotts, submitting informatien 4/12/73 requested by 10 CFP,50 Appendix L D
Tabulatica of lien-A tabulation of Affiliated Utilities utilities in the Pacific florthwest not participa-ting in th.e Project and their power source C
Service Area liap -
Service area map of Ilon-Af fil iated Northwest utilities Utilities not participating in the Project D
Official Statment -
1)
Descript' ion of UPPS!
$25,000,000 in Revenue 2)
Description of Proj(
Ilotes for WPPSS !!ucicar participants Project flo. 1 3)
Ibp of Service Area!
of Project Participants 4)
Copics of major contracts asscciati with the Project 5)
Financial and Icad-resource data for project participan 6)
P.cgional (West Grou load-res curces forecast
Hr. Braitman page 3 April 25, :1973 If further information is needed, please let'us know.
Very truly yours, blE J. J.
TElli Hanaging Director JJS:DLR:mdm Attachment 5
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COUt(TY OF BEllT0!!
On this day personally appeared before me J. J. STElit to me known to be the ind.ividual described in and who executed the with'in and foregoing instweent, and acknowledged that he signed the same as his free and voluntary act and deed, for the usds and purposes therein mentioned.
Given under ray hand and official seal this 25th day of April, 1973.
1l
Z IlotaryPub1Icinandfor Y
the State of Washington, County of Benton e
y AnAtlinti:T A Hl' M.l. V C / J UNIT STATES DEPARTMENT vi,,USTICE wAsitixcros, n.c. sono m.
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.a n.r.,i.e.:.:.u.a. G TEK:JJS 60-415-0 April 12, 1973 Joseph Knot s, Esquire Suite 1050 1747 Pennsylvania Avenue, N. W.
Washington, D. C.
20006
Dear Mr. Knotts:
As attorney for Usshington Public Pouer Stipply System you have inquired uhether. the System, in cot.ncetien with a forthcoming application to the Atomic Energj Cor:aission, must furnish the data specified in cach of the tuency items of Infor=ctica Requested by the Attorney General for Anti-tutust Revicw.
The System is reportedly a municipal coroo-ration. nd joint o conposed of appro::perating agency of the State of Washington, imr.tcly 18 public utility districts and the citics of Richland and Scattic.
The power to be pro-duced by the proposed nuclear unit will reportedly be made available to the foregoing entitics and to nu:scrous other public utilitics in the Pacific Northwest.
Because of the broad ownership of the prop'osed nucicar unit and the even broader access to power from the proposed unit, you question uhether there is need in this instance fou. all of the information which is customr.rily required for antitrust revicu of AEC applications.
s'ou also note that, under the usual information requirem..nts, cach of l
the entitics composing the Syste:n vill be required to sub-mit a cortain amount of information, and inquire uhother this is decacd necessary.
We have revicued this matter in the light of the points you have raised, the circumstances attending the System's ouncrship and operations, and our previous co:perience in connection with the application submitted by the System with respect to the llanford No. 2 liuclear Unit.
r ATTACIW.EliT A Our conclusion is that the System should sub: it the informa-tion specified in the 20 items pertaining to antitrust review, subject to the following modificat' ions.
Item 8 - Submission of this data may be deferred, pending notice from the Department that it is nooded.
Item 9 I cap showing all non-affiliated systems may be submitted ir lieu of the list.
Submission of other data cry be deferred, pending further notico.
Items 11 and 12 - Data relative to the System only need be furnished. ' Submission of data on the entitics comorising the System may be deferred, pending further notice.
Item 15 - Submissic of this data may'be deferred, per. ding furthc. notice.
Item 20 - Sdbmission.of this data may be deferred, pending further notice.
We trust the foregoing modidic~ations will en..bic the System to expedito preparacion of its application.
Sincerely yours, TIl0 MAS'E. KAUPER Assistant Attorney General Antitrust Division B!: icf,.!f{ b.4 swdhn Jose h aunders Chief, Pub $icCounseland Legislative Section e
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t ATTAtllMEllT B Tabulation of lion-Affiliated Utilities The folloutng list includes those investor-owned utilitics that are not participants in the Project:
(1)
California Pacific Utilities cc.pany (2)
Idaho Power Company (3)
Utah Power and Light Company The list on the following pages shows the other utilitics that are riot Donneville Power Administration Utility custcmers and are not participants in the Project.
The list also indicates the utility from which each of the non-participant utilities receive either all
.or a portien of their bulk povdr supply.
As may be seen in the tabic, only three utilitics, the cities of Dubois, Soda Springs, and the City of !!ciser, Idaho, buy their power from non-participants in the Project.
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Utility Source of Power Utility 1.
City of Dubois, Idaho Utah Power and Light Company k
l.
Z, Village of Plummer, Idaho Washington Water Power Company k
3.
City of Soda Springs, Idaho Utah Power and Light Company 4.
City of Weiser, Idaho Idaho Power Company 5.
City of Woricy, Idaho Washington Water Power Company 6.
City of Ashland, Oregon Pacific Power & Light Company
/
7.'
Nehalem Basin Pegoles
-West Oregon Electric Cooperative, Inc'.
Utility District 8.
Alder Mutual Light Company City 6f Tacoma, Washington 9.
Cashmere Water, Sewer Chelan County PUD, Washington arid Light Company 10 Cit,f of Chewelah, Washington Washington Water Power Company II.
Entonville Fower and Light City of Tacoma, Wachington Comphny 12 Elmhurst Mutual Power City of Tacoma, Washington and Light Company 13 Town of Fircrest
. City of Tacoma, Washington 14.
Lakeview Light and Power City of Tacoma, Washing.on Company 1
15 Town of Milton, Wa.shington City of Tacoma, Washington 16.
Modern Electric Water Washington Water Power Company Company 17.
Ohop Mutual Light Company City of Tacoma, Washington i
18.
Parkland Light and Water City of Tacoma, Washington Company 19.
Peninsula Light Company, Inc.
City of Tacoma, Washington 1
Utility Utility'- tource of Power 20.
Preston Elc3tric Utility City of Tacoma, Washington 21.
Town of Steilacoom, Washington City of Tacoma, Washington V'.'( L
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Washington Douglas County PUD,, Washington 22.
Town of W. S,1-
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. DETROIT, May 27-To help re.
duce the cost gap between Japanese M
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% -[j,@r. 7 JDd2 l.
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', is scrambHng 2 aummtHts feto and American automobiles, Detroit
'4 ries, increase quality and improve 1
.dTor,thwe.s, t P.. 6i'it' H ' ts,
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more efficient plants an y part I
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y Anod, er.O,,uh,. ear P"roj[ect 2,of the answer to the c 3
h enjoy frt m an undervalued yen and
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s tax forgiveness on dxported prM.
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's,asar ame Np Yet h Immediately after tee announce-acts.
- l SEAT 11E May 27-The Yashing. l - ment that the No.3 plant would be The cost gap was put at $1,000 to i
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ton Public Power Supply System will mothballed for three years traders
$1,M a car by a Federal Gove~rn-
, dropped the price eey werMung 2 ment studyin 1980. Subsequent Gov.
IQ off nearty 1,400 craftsmtn nad pay for the power system's bonds by ernment studies have put the gap at f
l begin to, demobilize and pres & '.7.,pne to two points. Light trading oc.
$1,2 2 $2,000 on a ical subcom.
{mday Muse of a lackanother of its m= clear p;c acts on Emrred at the lower level and then
, pact car. This cost dvantage,. -*
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1 hc M"The street did not panic b mm htn any oGer factor etimleaves on! one of five ;.; adingquicklycametoastarwistiU~
cast an ominnus cloud over, has ecatase,
the nuclearplants
_Its,124 bil., C,. hs "one thsy wpe y aware of the Amrb aum industry, mee cor,.
tradersaid. ; ' prob-sidered the most productive in the Hon program
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effecutive = H.
g by
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board took the action today-m the 74 % whoops ahtheby
- Philip;Caldwell, chairman of the in ad and si on w y "U ing the J
J
,ers sai could not float 3963 mil. fUnit3.
9 landed cost advantage number of Iim in
,nemary to-menplete w Bonds on Unit No' 3 'ar'e#70
,' $2,000, as we see it, the yen is about
.l the project. Board membert shid the '". backed by the Bonneville Pow Ad-SE, the tax burden is about 3600 power system's looming default Tues-eml*tration a Federal tha and the balance of it is day on $2.25 billion in bonds. sold to % markets 50 percent of the electricity
- else. So if you callit one-one.
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construct two now-terminated nuclear ponsumed in the Northwest. Four of third, one-third, then I would say h
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2'-the region's largest investor owned tw> thirds.of the ~ problem 1s nutilities own 30 percent of the project.
wrapped up in areas which only p
Financing 1s Seeght y
=, the tends on anothballed Unit I andBmneville is backing 100 per
. governants can do sornething
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-Over the next 30 days, the" power system will continue to seek Jinanc..!~31soof the 98 percent completed Unit 2':
Mr. Caldwell's contentions, if not o]g F
ing Ifitisnot forthenraing,ifpilltake Jor.which fuel will be delivered next
.his exactbmekdown of the amounts the final step to preserve the plant for *.?tet By comparison, 88 Northwest -
, involved are supported by other
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t three years and lay off ano'h'er 540 -uullties have packed bonds on the
. auto industry executives and those workers. A year ago, the power sys, ghandmedunits.
In~mlated fields; tem also mothballed for finantial rea. r Peter Johnson, Bonneville attr ints.
IAe L Morgan, chairinan of the s
s
.e sons a 80 percent completed unit, M
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etPortland, Ors:,1bramend'fmapacted quarrel over U:
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0 mis week In'a letter tojhe U
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e I caution. "But constr=*= en Unit 3 high American interest rz.
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bond backing by investor owned utili-e-
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3l Jy :.j, uga l sl Q g - % j f 'l ties," said EDeen Austasi, vice primi-AB European leaders I l
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donar is overvalued at p nw m.* * *
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sd2nd hw 4 dent of municipal rwearch forDrexel are worried bythe depress I I
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t '. sw aw justi 0 Pee PolicyAttack
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- MAY 27* t 9b3'-
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consideration," he said in an inter.
But President Mitterran c-1e e
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,ged, a[iaI ',hofrev5r, also' ques. further than an C'~
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t'lon the for Unit 3 The North-tacking the Reagan Admh g
west is in the, throes of mit electricity mcnetary poucy, demandi.
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. j's
.=
zw "12'.*/fd s.g: N :O d' d. f surplus that is expected to continue United States intervene on sid I
-% S,dn Into the rnld.1980's. It is 'imfM1y the. change markets to reduce t w
dN l
I
"" Y@Mi@ iE.
..T e
a I
region wSI need power from Unit 3 in vahie and surnmon an int E*T..*
- E" 8IU nM d "i $ $
1996if the reactor were mmpleted on Q
"4 9Jb w"""
3R "l :
w ir-
_1 r 7-u 5
M schedule, Mr. Johnson said. The only
- *Drld s
.n n', M Jf*'oY;.n Jui Y J.,
Pown buyws in & are Soudtwest
.g,
' dg nw..
i iff a*...
Utilities but they are not willing to pay In Psris, the do!!ar w. '-
Nr"E w(.n ad N E's.s"g. $..l*.g).u3 vi
'* k
(
R 8
l 4*f'8 on! 30 mills per kilowatt-bour. Yet seven and a half francs f
-k ; n+.1 ag' g 5 3-u s m u),3g ug g 7,nft 3's fully allocated costs are 80 to time evn, reacMag M2&g
- 6 e
< Su r
-r e
w U.
2.::. '
J
.g m,w h
- M mms. Mr. Johnson questions 7.4775 yesterday. Stre y
unirTe is !
II'!!'
N."
$ :..l 2 isu " 9 ~ 4 9.6 mu 2 tu' l ' i '
whetherit "is prudent" to run a plant agCnst other European cun.
I h.
! d 'M
'w a g $
~
tk k l'"T* s..
smn s% <= d in which "we would not be recovering, well,it again broke througi r~g
'h" W* IN 9l h N ' i ourcosts."
chologicallyimportant 2.50.:
i 4 ) y' 's" g
- %". olh,, :asw.arh. N' l
~4 l
The Bonneville admintctrator said rier.in Frankfurt to rea m i;gs-
. 7 stw w..
r a
f r
that if his agency was forced to fi-marks, its Mghest level s news R ::: i:
- 1-l.
l l
f' ~ T nance construction of Unit 3, Bonne-Novanber. In Zurich, tr i
2..
- ]
ffA M" N
- n. 5 0 Qb!...y "M",,8,;. '( e-l l
l l
ville would nead to raise rates region-reached 2.0831 Swiss francs t 2: ;,'
wide by 30 nercent. This would also 7d*/'.2 9,
r
- tx,.g*. ll,=4 - l u
O
[f " h, p"."
m.,,,,r.
M M
,. yt+..
g..-
, e4 g I
r~n v
eig s-r have animpact on sonnevHie's finan - F exchange tre e g4:
eage":2 ; 4 r.8) ij - 3 '. 9 l5 l
cial stabuity. Bonnevine is higMy the franc's decline m
ww..11E q
E:*.
ty 13 leveraged,with 87 percent ofits revel i"h 4.':D tainty in the face of the surr
'4 e
s
.e r-s l
ist' ! 9 z$ $ 4. nues arrenty soing to pay axedthe 86.2 N: v..D e=7.:;g"5 costs, including interest Hamadag on "ference where currency va
- Id d u
mw *
- f. ;$
Okm
.."34 e
n.
I l'
l r
9 un g
4
=: '+%
9 danceln the fmne appeared 1 YN
$..':2 -
I. '. h, arr M D L*fn,"$'g'N k 'S r
r r
r r
Units 1,2 and 3.
W. ; '- '
2"E the market's belief that F l.b 1 R.
cially wtII be in default ce the bondAlthough the' powe r
u it g
l4
- Hl 0 @
3, 48,3 9-1, em.
- e ful concessions to the Fre l'N' (N:."
e e
e r tw e
1 debt for Units 4 and 5 on "D=aday, mands at the conference.
0 y'; 8 S. :" 'l 9 8Y.
l qi k'*$ 8 4
T ::
Q, Q Fl l 4 l
Canty Superior Court issued a writ-
.PalafulEconomic Dilemma
!'D..w.>b Judge H. Joseph Coleman of King 7"E E y L8 2 -
{*m '$ ww us::
!a R F U ullwm8 #s
- *.. a sa.
r r
r e
b" Ti ' "'t t ten order today bondhold-E.!!L*se M"h R-"D" mMA
- M,t i
en and chemical sank,
!l ider "There is m si f..:$ 0"*o. se pausys Maasm@gn that the -
Ed m
iat %w.RI DR..:l N 9 ali '4 sw -
arw :.
m sw r
w h
r u i*s s
s whM anD!..
tem in default pending the settlemett' ficially, that's why people w l I "I N of some legal questions. This prevents - dollar now," said a dealer wit!
m
, $ P** D une f n 'I rg 3R" E sf 't l 9 l
l bondholders from demanding that Lyormais, the big French state M P{'T...? DE
- g'la @"+
k e
inw u
e ion SJ'. %
M,":":5 >g rg
,s=
ser
.n a ses e
Q a,% [ "s"E that power system pay overdue debt bank. The dollar's strength,,
R
- 27 ~ !
l within 60 days and from accelerating President Mitterrand in part t h 8P.
g w %s.
%aw_,
g Mi 7 g,",
f, inl l UM, 4
)
the total 32.25 billion debt and making the exceptionally weak franc ga a
r e
it due and payable Aug.30..
?
created now wnfronts his S '
27*
3 h" h'l " -"&
IeTa7 *{ %"tr'I"!isam."". R:E 4 -
-l l
The Seafirst Corporation,' Unit 3 Govemment with a painful ec.
iE ils 23.:.:
- 90 '"..I iR 9 ' s
?'l bond trustee, said it was inappropri-dilemma. -.
ag h'-
M h '"
N B*r" m
g.
s%
e
- e M.g D
ate for them to mmment on the Unit - Either the Socialists must 8
N 'l '7 '7 3'spresmation atthisHme.
P. ~ :.-N 3 h tagQ g'
sw.2
$i
- m W.
- 9 troduce ' unpopular new au M..... E.y:uh p Ji M,4 4 M-1 Xakasone Backs Rea; n A -m al a.
_d, 3
aa
.a
^
A(EZ.- :L g 2&,s:.
2 h
1
? tan, 7
m
O Q
an I
1 l
THE w u s. u nur mrnN AL. bio.<l.,, Ji..e 23, i iii ararbe of the Instaat tuimal erketr:g prospec-flear what the rtghts Of the bndhidders thew het and temptes pro eteres Ihay de i
tuses Thew smts c targe that the tpmd dur-are.'says Rotwet Amdursay, a partner at code simply te nell thew b eds and une a 4
a
""',*3= ".prw"s u'"ve~h,e. a '~ ~**=,. ua,',i ~ ~~,e~e., a,,,, d *=
ar m
-Your Money Matten
'm"a~non. "c'a***b.dhnwn i.">m"ve's thew i-i a unkn fiwd s ar, kn
, da a b, ta,m,,
memey unhout s*fi knddte of Ptential nas4cr 9 went sta effect in 191 so trgal s4se ams na urPss he 3 he.im a m
~~~
i r
>~
~ ~ d u,,~en mam,.
f
,~,ue.m,,,,um,,he,.
I( \\T/PPSS DefauIts on Iis l'ax-Exemfn Bonds, s
,wostreena.,,,o,, -
.s b-.s.ut..ui
, ca, ut.a,,
base 1 happened tirfore."
and No 5 plants wedd spiel owee late alte suits are premature smre default hasn't er-c You, as an Investor, Should Know What to Do, =':=:=~5 a ::, m m = ~; w,r:
- =a:,'ommer ::'t
~'~
pud hs M M a ph aner parrhasms 3N 2 3"*8888 af claim ' wuh he court u esiaWh Gefw wm 1 msm W meme" h sm af M dent in the corpir ate truct department says M
8W N
selws as mders and to gwame entin.
8" m "Ewn thongt unamawty. the he metrumes s:erk a ruuve. "He d rather baum, a panner one the kew Wrt law catme of att devekytnents.
bethilders metht (sew out 00L. I causide t
[$fydflg [i [$0TTOttiftf have beinedeters menived " he pD. -we firm of %$1ne, Farr & Gallarher thrh re-Of course, mee>turs who want to aveed afterd a tee or three year hiatum-BV L'** A$8*
'""'5W** renity terame imod coimwt ta EPPss.
IDa Spriman and her husband lumcht
[**,'*"*"
{M " l Their sant te get in semer rather thaa 3,,, m.,,.a vi., e. w. e a -==a
- 8 y
g las se of nehmeton Putdk P >=er Supt y Nothing Generated gater to giorert 4 ear neits" d
Denste the difficulues evolved WHh le-
$,swm revenue hseds three yests ago. Tw d4y ine surciy systern a petreing on sfw C'***, e tes i t v", ow er s0e ya
,The, trisstee, eit.her by i.tself br,s,t the di vdmg whielders' stries ud remedies.
" N5
- "b
,9 g p, g,n, g,g many lawyers stress that they can er swd n
bema of deuult. and the knads are earth a wo0Dv scopermafg viElf.sS-"
he M m uke W W h PW sg d as efferteve turgainmg se,ls. No hvwr of mere u ec The Spelmans fear that hv A'**d as emed tme as it wams in the HWS$ rase, for enmple, tan esempt t> = 1. is eager to trave a default Mg g g ga gg pg ga gm January, mPr$$ een t tw aNe en make Ks 12 am veer earmee tS In ne tratre could demand that the supply encored ansf l' s rish befag ebd apr d the aaa5%,taggJ mats sg Ig ;pg.
sW5lem turn,Over all limds currefitly 15 sts
=
surerest p4ynwnts.
-TE Df n*L Hout LOAN teaNU-tmnd market. titima'ety, res.au' es use-Faced with that gtern prispert. htrs.
pny.,s. ion go ih, afi,rted pneer pearts. No affy are warhed out? hir. Spetta says.
a**see saarew ceavensionsi **'oege Strimaa says me dewse t know shether she 4 and No. S. pl'as acy encome the two rais-Ifnedimiders' rights and reme@es get g,,
- '*eaa****"**
sNmkt sue try to ortsnue a bedikers 13% V** **'ter: 17 28%
celed plants Imght have gaterated. These vrmre hazy of a timmdrei defaurs turns mio g,,,,%,,,,,,,,,,,
g,,,,,g, 8
I group or lust sat tight. "I m married that Aa*
- fun <ts =ould first be used to pay empenses of a snakrupery these e memripality can't te
,I se are g ung to inoe our mrmev." she says.
- ] *"
g the trustee and the twMhoMers' committee. furred mte bauruptry, at rat voluntanly me Frasekhse Pist, a mee
-*9e d
cuplamme that se one seems to kano what an,m uowey uanntI or Posers-then la cover det,ts fnr the too p eer plants.
sech the prDiertem of Chapter 9 of the U.S.
Dus,enes,s,h,e,sids seed,,ses,e,
- ' ' * ~ ~
wg m do.
Rame ene oms each sunemen tiel-and finally to pay prifertpal and interes; Bankruptry rate sa that et can reorga**.re g,,,,
jg One teams fnr her confuMon is that line As since the No e and 5 planta never us debt. The rules here are set by a f9eral es,,, c,.,,,,,gw,,,,,,
ou as 52 5n0 mg the sue uf the pnienttal %PP55 defattN d
.as heah. e es were bwlt. there usa t any revene twing bankruptrv Nige, who may or may not 101-
,,sd,susle,,s,. a,cessipe.se,,
i
. - g0 -..
8'e*o.e meser e-w awier oneines a toen esse-eenen, pratured And the limited fundt tidl en the n
has ever happened tes we. Maartpat bats n,,
j de have twen camsidrred Ihe safest pastbac sa bank me a sufferient to cover mtercsr and 3rme prov** s ed the tund resgu na seW
- 'wlien you get inte bankriaptcy, a tsa't
,,,,,,,,,,,,,an g
vestment. Detaults are fro. bankruptries pnnripal p ynwnts after July a a ce.e., cay eng,,,,,,,
b**d
/ p,'
4 even fewer As a result, investors rarcty can te smed m the event of a default and omee Irgal remedies are avadable *rwh tynere., mea, e,,s, se i
the trusice and the ladiutdal bM? ii.er y.,T y
have h4hered to owry strue enat they M )l
- " P'Y de museess 4
slumed do d their munscipal tuods stopped e
.? Jr i i Sc risuld sin frir unpaid prmripal and stered.
h Y4 p4vmg sterest ors sheaM' chn me pde repneus Imt even if they men m court, they maghi c'
j' E1 Il.
q.t' 5 L
i
'.m, g[
' g,[ "
vongs,'f,"
leut with HTPSS prohlems folinemg a soon of any arthm they fmght take, smre mit gat any fnunty I
ai few short years after New Yatt Pity's finan.
S8'"'if the remedies avaslable to tumdl>44-The ave, according to ktr. $pmtto caman. m a ll (sal efhts, fivre prWie are,startmg to pay= <= =~ a 64d =aaan-aced Pey re migc A,id mai. w uys. m liRSONNR PROBLEMS m
c sw wonen io ihe ng. ~ em,*s md
'ra'km "I b d"I't, hw eiample. may de let eta (fly that hartened when a court or Ale oNer11ocatiofiprobletris:
b
' y'
'y/A'
.e ame aue to bnalers of truutded taxetetriM tie he lamdlwilders of the te nd tssuer hacei dared a levee datnr1 in innsiana to rats,
'i 7
tues a reer tennel pwmenn T'w M W
- PMM = brriover g,,,g the numey to pay st Itast the a&titional p w
U. -
- {
T,1 These nghts and remedes donI rum, su e nut l bm me assuer mte taankniWy.
the nem detrict resigned en masse. leaver b
mio pay unitd there is a dehult. ec y sne maung a nm set W pn# dens.
the district withnut anyone authorired to reCfuitrfierit.W
]'
sa
'C earssed by a f4ilure to pay aterest or prinrg raise tases. And senre the court emside t pal The terms ad these rigtits are set frwth brre those varanries to be filled. it had no Senaltarccanpaime'*frn 9ptw sen e
m the issue s thiami resnlutina, and they rary Secktng Sol:8lans fremi.sne twed issue to Llw meat And shde it may take emly onefourth of way of nforrms its order.
ORO Wm Ilot Ge tumd tmer rni the only psten gen,,g,gg,,,3.
"a A Possible Sperdup all hathiWrs to acrHerate tfie de.tg. It canna i=rgi * ~~ w+r a s = = *
&mMm. Maa une -e mai war u. r-a e ma-I' on y,c,.1,,,s,,emed,es s,.,,,,,,,.
--e aa ar sc = =vi. ii ese e der wress case ia e>> 's airead> a
'aried
>--*"a'.">m-n.,m.. f., comge.
ame.s.,%,t,cr.ed,,,m fra io em me agr-at of r. of
- aag a*r*ntas wt attet agi-a v in me c-.m. w m
. ~ ~ ~ ~ ~ * -
a se rolage
~~~~'*~+*m~~
y
,,a.
n----ee m ~
.ed a i.md a.
t,,esi and,nnn,.i houns
.I we., ** hn i aa' ~r -
or,,,s.ue,,n.ned, srehmg a resolutaan of the protlem. nnt a 39.y
}migment. Mr. Spiotto says. not'r g ihat his-But etDerts are ' quart to punt cui thd 1 pally smal lHA&rs of trwNed tNeds sm b arthms actual'y may Ge httle to hcIP "nisah haw ben W. N paynnts
.svestrws get their Enohey. That's tierause may have came late. and their interest viay i -
tan etemM lumd asse usttalty have spr.
mi ietet one.ners,revots mer, hav + nr~ -d.hao. w u n m a 8~.**'
t S
b f.,
fruen setoftg petaperty, since such a,arure k*l d thf I""51A""I' agree that the in Ilood e1perts seem to mit 'l fitsrupt operaterms of a Rtunanp.ehty ve%Ior 3 first step after a default 5 to E*t In' t
N'C
'. d g5 Li a resud. Inve%tMs may gut a jelgment m firmarme her Spmeto rcrommends that yne
,y * /.,
court, but d the usuer d.irsa t hve the lN4R f'w'"iarl II I"ed Insster-tyrkally aherit ran P*t to make sure that the at.
..i a
e meldteV. khtasinrs Wim I ("t p shi bant.
'You casI sempty aftsh a pJere car er Ishuer hves up to its agreements a hydincierffbr lF)tity or any other asset 3 ],lfy the methK'pality might have. ' eisp! alas
~43g the trustee what the status 5 and W
that a,rtyms R l,acemts to take, Mr Spie.lte rmen w,di o a,,,anm. c.on ist til Irmmrtpal hfWs h Speutto, a sterial q
4 en,,n,..as conoam, ainge u.
lc a,,;,,,
sue me t.as du3 a,
m,.,,n,s.,, hat m,,,m4,,unt.,,cy i,,,,,,a,he L
uys.
nr a,ene,
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une h
m rh., 6-n,ie a.pm.,g.,s.,.he,her det..de
. o,,
h?g E. E G
w.e mmf e.
g.t rai.
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,g fn) th# tatl l
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$-d M_3 GoingDown WPPSS heads toward defatdt W ith its hard-luck history, the Wash-ington Public Power Supply System (WPPSS) has richly earned the unhappynickname of Who tem's three of the five unitsin the state sys massive nuclear-power project has cither been postponed or cancSed, a: d a fourth unit is endangered. Last week things got even worse. The Washington State Su-I prcme Court uncxpectedly ruled thatnearly 30 pelic utilitie d
pay their share of the $2.25 billion owe i ion WPPSS for building costs. The dec s pushed the system a step closer to the ulti-mate whoop Donald Mazur managing director of faultin history.
" devas-WPPSS. called the court decision k on tating/* lic said he still expected wor hich the last fully active power project, wis 97% completed, to,,: fin i needed.
tcmber. But $149 million more s and the money is nowherein sight. '
The local utilities had agreed to help finance construction of nuelcar, plants 4and 5 under co hy to pay for the reactors whether or not t e d
produced electricity. When work stoppe more than a year ago because of escalating costs and an inability to get more finane.
inc. the utilitics refused to pay and de-clared the agreements invalid. The state supreme court went along. It ruled that the utilities did not have the authority to enterinto the accor t risk they were putting their ratepayers a for the construction costs.
d WPPSS is now $8.3 billion in debt an has no visible source ofincome. A Wash-ington State judge temporarily saved it from default on May 31, when it failed to make a $15.6 million monthly interestpayment, by ling.
tion. But after last week's court ru Washington State Senator Al Williams h
conceded: " Default is now pretty muc
?'
assured, and bankruptcy is more likely Barely enough money is being held in a f
reserve account to pay interest charges o593.7 millio that,the cash will be gone.A failure by WPPSS would severcly rat-d rket tlethe5400billionmunicipal-bon ma by drivingdown prices and raising borrow-ing costs f I
Pacific would be particularly rough on the Northwest.Says Tim Kerr. deputy treasur-er of Washington State:"We will see some very highinterest rates,"
It would seem that only the Federal Government can save WPPsS now, but rd a there has been little mosement towa Congressman bailout.
/
Chrysler-style George V Hansen of Idaho has intro-duced a bill to r Ilut I I the bonds and pay oft bondholders.
ider-the billis not given a chanec of consation until WPPSS i
i eek.
I that could happea as early as th s w m
l Ilansen may not havelongto wait.
51 7
Gourt Rukig WPPSS Veiging on Default m
e' 7
d Ob WPPSS, From D12 system failed to make a payment T
little chance for congressional assist.
into a bond reserve fund. Such a no-ance unless it becomes a national tice would have given the supply e
problem.
system 90 days to make the pay-30 Ul The suit to force payment by the ment, after which default could have
(
By Les Blumenthal hhington utilities was brought been declared and the supply system
^ * * * ' " " "
more than a year ago by Chemical headed for bankruptcy or receiver-
.. SENITLE, June 15-The Wash-Bank of New York, the trustee for ship.
mgton Public Power Supply System lxmds sold to finar.ce construction of WPPSS's only assets are its three w'as left without a means of pa in the two abandoned plants.
reni ining nudear pown plant of off the $23 billion debt for two ter
, **ical Bank has not yet seen which one is nearing completion, an-muuted nudear p,wer plants today the decision but is surprised and dis-gg and the largest default in the history -mayed at the rep,rted results, said lon as five years and construction of the mumtig.d bond market,
Brian McGirl, a bank spokesman.
has been halted on a third.
8eged all but assured.
McGirl said the bank would ask m two abandoned plants, one at 7 b2 d,te Supreme Court, in a the state Supreme Court to recon-Satsop, west of Olympia, and the ta court ru$i l$el!
a ower sider its decision and planned to other at the llanford nuclear reser-t puhhc utility district i
amend its suit in the lown court to vMion, were terminated more than a i' ties in Washingt n sta e eihl-assert "fr ud and contract claims for year ago after WPPSS was unable to t
imrrow money to continue construc-the express nor implied legal autho-the full amount of the bond' ruiy to enter into ag1 cements to pay ag inst members of the supply sys-tion and questions were raised about tur the plants being built b#
tem and supply system directors, the whether the power from the plants f
would be needed.
utilities and their commissioners.
l
. The Washington public utilities, nr.d certaip attorneys.
WPPSS has already borrowed whic i
pubhh were among 88 Northwest
$25 billion, which, when interest is c utdit,es that sponsored the A suies of 13 suits also has been tyo punts, together are responsih!e filed by bondholders that allege vi-added, leaves the region's ratepayers i
with a $7 billion debt over 30 years.
{r, m than two thirds r%e %nd olation of frderal securities laws and As ratepayers realind they would that the ability of WPPSS to com-have to pay tur two " dry holes." they Jourts in Idaho and Ore on p!ete and tinance the plants was rtil that utilities in those state $',
no in revolt and the utilities in Nisrepresented."
turn looked for a way of avoidmg not obliged to pay their sE.re of the Chenucal B.o1 had planned to Ix
'4 payment.
t on the plants. Those cases 1ssue WPPSS a " noti-of d fault" Sverint corrnpondent Laura Par-are on appe :.
. A default is "very ch>se," said
-dier this month after the supply her also contnbuted to vu. repe
%,hington Gov. John Spellman.
- I
' uecmon sent ripples threwh-the
' ot municipal Imnd marFet' which ended the day mixed after an mitial slump.
A. But hands for WPPSS projects
- o. I, 2 and 3 fell about 4 nd bonds for projects No. points' 4 uad a-the termmited plants-fell more than la, comts.
? The movement of a point is equiv-ant to a $10 change in the price of a bond with a $1,000 face value.
f "This is a devastating decision'
- 8. aid Don Mazur, new managing di.
l ro t. r of WPPSS, which was build-mg the plants for the utilities and had sold the bonds to finance their cor ~truction.
All that is standing between the supply system and default now is a ptate court restraining ordar prevent-
!ng bondholders from forcing the inue.
i
-1 see no regional solution at this time without some A.deral interven-tion,' Spellman said. But Rep. Al Swift tD Wash.) predicted there was See Y,'.*TSS, D11, Col. 3
i,v a,s i, /O S 7~ b - } 7 ~ L A t
Chemical Will Press For WPPSS Default By Nancy L. Ross With the lower court stay re.
w.emo.m ea swr wnw
,ioved, Cl+mical can proceed with l
Chemical Bank intends to press the default pnicess it will notify
[
ahead with plans to declare Wash-WPPSS that S15.0 million in int in;; ton Public Power Supply System est payments is due in 90 days.er-In
(
in default, Vice President John J.
t!.c ::kely event that WPPSS cannot l
Fleming said yesteiday.
pay, Chemical has the right to accel-l As a first step, the bank, which is erate the notes, making the entire tru3 tee for $2.25 billion in bimds
$2.25 billion due immediately.
sold to finance the now. abandoned The bank would then have to go WPPSS fourth and fifth nuclear to court to try to collect whatever it power plants, will so<m ask a' lower can for the bondholders. It does not court judge to remove his hlay 27 have the legal right to force WPPSS stav against default. The stay was in:.o bankruntry, but the supply sys-du. red pending a decision by the tem could... row itself on the protec-Washington dupreme Court.
tion of the court under Chapter 9 of The high court ruks! Wednesday the imhruptcy laws.
that public utilities did not have to -
-We are considering bankrupcty, pay for their share of projects num-default and other options," Don bers 4 and 5 because the' utilities did h!azur, WPPSS managing director, not have the legal authority to enter said yestJrday.,-l don't think there is l
into agreement.s to pay for the plants a solution other than federal help."
built by WPPSS. In a separate ac.
Chemical plans to make interest tion, the bank will a3k the court to payments.lulv i to Imndholders reconsider its verdict and will amend with funds WPPSS lus on reserve.
Its suit in lower court to allege llowever, that is expected to be the
" fraud and contract claims for the last payment. If Chemical wins its full amount"against the utilitics and suit aganist the utilities, it may be the lawyers dvi3ing them.
~
~
See h PPSS, F2, Col. I Bank to Seek WPPSS Deiault
\\ PPSS,From F1 WPPSS would go down in history as able to acquire some of their liquid the largest municipal bond default i
l
< assets in pay off bondholders. Ilut ever.
legal action of this type could take Though $8.4 billion is only a small considerable time.
fraction of the total Imnd market, a hieanwhile, a small portion of the default of this magnitude would have
. Londs, $76.4 million, is insured by severe repercussions, according to American hlunicipal Bond Assur-llowan! Sit 7er, vice president for mu.
ance Corp. Ilowever, that company, nicipal bond research at Thomson a subsidiary of the ailing Baldwin-hicKinnon. lie c3timates that Imnd United, has not yet set aside any issuers might have to offer wary I uy-reserves for repayment ers an additional half percentage The total amount outstanding for point of interest, a move that could all WPPSS bonds is $8.4 billion. drive up the costs of public financing Should there be more defaults, by hundreds of millions of dollars.
rnate. The first plant is not scheduled for a
Spm-Off Whoops Woes completion untd i984, seven years iater than expected. Making the situation even A 52.25 billion defaultlooms worse. energy demand hat been falling for Tittie tofortti a riew corripany several years, so not all the plants are he US nuclear power industry has needed. By last year, building had halted
=yime Inc. is best known as a commu-Tsuffered many setbacks, one of the on Plants 4 and 5.which were financed by a nications company that publishes worst being the accident at Three Mile Is-the bonds. Since then work has been magazines and books and owns !! cme land. But none is potentially more costly slowed on two other plants as well. and Box Office, the largest U.S. pay cable-l than the financial tragedy unfolding in the project's construction fund is nearly television service. Since the early '50s.
- Washington State. Next week the Wash-exhausted.
the company has also been in the forest-1 ington Public Power Supply System is ex-Utilities in the Pacifie Northwest.
products business. It entered the field al-I peeted to fail to make a $15.6 million which agreed to use power from Plants 4-mest by accident, purchasing half it-j monthly debt-serviec payment to Chemi-and 5 and were supposed to help finance lion acres of prime East Texas timts.'and
)
cal Bank on bonds worth $2.25 billion.
the project, are now pushing it toward de-as part of a long-term drive to find sceure I
The sceuritics were issued starting in 1976 fault. They signed contracts. known as paper supplies for its magazines. The for-to pay for two nuclear power plants that take-or-pay agreements. that obligated est-products unit grew into a major pro-i hase already been scrapped. A default them to pay for the reactors whether ducer of pulp and paperboard, although it likely endanger completion of or not they generate any electricity.
never manufactured paper for the publi-l' would three other unfmished WPPSS plants on Now the utilities claim. among other cations. In 1973 Time Inc. acquired Tem-l which 56.1 billion is owed. Moreover, the things, that the contracts are unenforce-ple Industries, a large Texas producer of I uncertainty that it would ercate could able and that they were misled by official building products, and in 1978 it added
{ shake the very foundations of the munici-projections about future energy shortages.
Inland Container Corp., an Indianapolis-i Most of the utilities have stopped pay-based manufacturer of containers and l pal bond market and lead to huge losses for big and small insestors alike. Says ments to WPPSS and by the end of June, containerboard.
Now Time Inc. is leaving forest prod-i uets. Last week, at the company's annual shareholders meeting. President J. Rich-i _
ard plunro announced a plan to form a l Sa. Q separate company by splitting off the i m..s % _e, f '.
.u forest-products operations from the firm s y.
g-
's w
p r ey 4-p t w, other businesses. If stockholders a p-k[y:
prove the plan, which would give them
' %3hyff dp 'Y.I_
- ab
. p
- p. -
shares m the new forest-produets com-
.jk*f.
p a --
" @f, year, the move could be completed by Np-N,gg.,
pany, at a special meeting later this I
y s
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4 M
7.:.-
i; year's end.
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- C The spin-off should make it easier
.c
.-R9[ -.. siderable capita! needs. Said Munro: "At 4
[4 924 l2G y @
~
t'~
4 for caeS company to satisfy its own con-j dWgg,....
g.:.
,< g/ [~ w q" y
s the moment, we inevitably have a con-l j
j 'i
'9 A
.gjep
. x tinuing lug-of-war between widely difTer-ent needs that have to be evaluated from
- %7 i.._
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distinctly different perspectises."
4.'
"',. 4. :
49 Time Inc. has made seseral major
.e W..
J investments la communications during f
-~.
!?
w i!
s
~
I the past few years. In addition to its mag-m.
, iwo of
..y completed nuclear power urats at the tro. Jed WPP'.d instalk alines, books and 1100. Time Inc. owns
, ifthe debt-service payment is not made. it -.z..
come the %est municip., ankruptcy American Television & Communications Corp.. ene of the largest aU.S. cable-TV P ' crt Ad'er. a Shearson/ American Ex-88 utilities will owe it %2.4 m21icn.
companies.1100 last year joined with ph. vice preddent: "Small, medium and wPrWs woes have made consumers CBS and Columbia Pictures to form a
- large investors will all be hurt-all the in Wasnmgton State furious. Since bills new movie studio. fri-Star Pictures. Last
, way aeross the country."
for the nuclear plants started coming due, month the company launched its eighth On Wall S;rcet, the WPPss (nick-the average red.'ential electric rates have magazine. TV-CABl.E WEEK, which will
! nanw Whoops) situation is being com-gone up about 80% Some irate ratepayers provide system-specific listings for both i pared to the near default by New York urged that WPPss file for bankruptey so cable and broadcast TV. Time loc. is also i Ci'y in 1975. Investment bankers are hs p-that its debt payments can be eased.
experimenting with a teletext service for
, ing for the best, but some expect the Congressman George V. !!ansen of cable television. Time's teletext will be
- worst. Says David Jones, an ceonomist Idaho has been preparing legislation for a the official information service for the l with the brokerage tirm of Aubrey G.
feueral bailout of Whoops. The Federal heads of gosernment at this week's eco-Lanston: "This situation is another Reserve is watchina the situation, but nei-nomic summit in Williamsburg Va.
l Mount St. IIelens waiting to happen."
ther the Reagan Administration nor The forest-products firm, which will wrPss's troubles are the result of more C ::gress seems inclined to consider a res-have its headquarters in Diboll. Texas.
i
! than a decade of misjudgments. In the cue operation.
will be a major U.S. corperation on its early 1970s. when it appeared that the de-If wrPss does not make its debt-scr-own. Last year that part of Time Inc. ac-
' mand for electricity wou d outrun supply, viec payment on May 31. it will have 90 counted for $1.1 billion, or 32c'c of the j WPPSs started construction on three nu-days to find the money. If it cannot come company's 53 6 billion in revenues. if it i e! car plants and later added two mere.
up with funds, then Chemical 13ank, as had been an independent company, the
! The agency. though, was unable tv supe bond fund trustee, or the lenders will tv forest-products operation would have
.8 l with such enormous projects, and dead-ab!c to declare the bonds immediately ranked 270 on the Ibn1UNE 500 hst.
i hnes began slipping and expenses bal.
due. Such an action would doom (Fe en-Munro said in announcing the proposal l looning. By 1932 the total cost of the de-tire project and push WPPss into receiver-that separation means that the "maior j velopment had leaped to $23.8 billion, ship, making it the biggest municipal parts of Time Inc. can become greater more than fisc timca the original esti-bankruptcy in U.S. history.
m than the whole."
a TIMI MAY30.1983 71
=
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m-:-c e... cWG3TE-W355
- - m-Tr L
_UpMllBattle WPPSS'PlanforLoan Faces As Bonneville, Banks Question Proposal But Bonneville is concerned about some as-
'Tm not prepared to say e,.w m s m o am,
, mira.n w pects of the plan.
B nnevute deputy SEATTLE Washmgton Public Powerwe would accept it." says o admmistrator Robert E. Ratch!!e.when WPPSS nssues bonds, th Supply System faces as uphall batue trymg to arrange the g360 stulhon credit line it has decided to seet trorn major commercial are for repayment over as Piany as 40 s receivmg from years, but WPPSS envisionbanks a three-year credit finir that can be
- gangs, WPPSS wants to secure the credit with a converted to bye-year notes for a maatmum promise of repayment by the feder:J Bormeville Power Adimnistration, but Donnewtu of eight years. "We understand that com-mercial banks d41 normally consider any-l has imsgivings about such a guarantee la thing longer than about eight years" says '
addnion. commercial banks appear lesslaus H. Wannard, chairman of WINS' ea-than enthusiasuc about WPPSS' proposed ecuttre board's audit, legal and finance AI 4
- a.nweg.
WPPSS. construcuos a.m of Washingtoncommittm But that would mean that Bonnevde, tw
' state's puttic uttlaty districts. needs t emoney to continue worii on its No. 3 nuclear Ioa N. {y.
h
- I t the end of eigftt power project. ahKh is about W. complete. $%0 mr.1 ton face amount ald have to collect such w
Normally. WPPSS finances its construction. years. Bonneytt'e wou l s revenue, so "that prr:Jects by issulag revenue bonds, but un r funds frorn its gwr-sa ecauses us sorne concern." says Mr. Rat-certalnues raised by lawstuts on two othe chffe. "Witat that could do to our rates j/).
'j projects have made it impossible to issuemore bonds for project No. 3. As a result, makes us ve y uncomfortable.11 you can't.
- {f WPPSS has decided to seek money from roll over or refinance that, as a consequence [
Ks too cosuy?But Mr. Ratcliffe says Bonneville isn't commercial banks.
ConvertlMe Credit Une rejectmg the proposal until %?PSS has had WPPSS wants guarantees from Bonn* a cha:ce to present it to banks. Details ville because Sonnevde has contracted tomarket v. of the power from the plant.
I won't be worked out until WPPSS an t ebanks try to negot dh BonnevWe previously g.iaranteed that bonds I
,,ve got to have more detalls/* he says.
issued for the plant would be repald from "We're eager to find out t! there are some power-sales revenue. The remainmg 30". of d The maior tne plant's electricity would go to four in-] sources that can be tappe.g the interest vestor-owned ut!!Ltles, which hold a 30". in'I thrust of this exercise is seein of some of the major banks."WPPSS plans to send letters b a ha terest in De prolect and are financing their d
Evestually WPPSShopes to rehnance the of major banks today, asking 6f they woulbe interested La separately.
snart bank bo".rewing with a bond issue, but that Perko. WTPSS chief financial ofheer and can't be ensureo. So to make the loan at-treasurer. He sand WPPSS hasn't crantacted tractive. %?PSS wants backsg from Bonne-banks about the proposal. But Mr. Ratch!fe AO vHie. @e big federal marketer of electricity.says 'Tve been t9M there O ve been some
. contacts and the banks are suniciently later-FAX-31 th n
emenweds a swp ested to ta:k."
REfD EUMB;%MI3 Bankers' Reactions a Sma9er a
But bankers apparently haven't es-TO t m r e.ua aw-m 7NN Ihm pressed any enthustasm abnut the proposal.-f woujda t r FAX-31 cr NN.es ew sa wm[ ump.,.
c wsa e.ma.s.ie.4.
a e, -.e se itiem money." said the utmties spraalist atG-l f acsir y;gra " * ** ** a maw Madeest bank. "I Girk they're g.
feaCh ai
- e..
ing to have a real mard time of it."
Fw waseestseems tasisove ses su rs7eThe bankers fear that the Washmgton Thf scwownto a associaits. ac.
uttiary esn't offer sufficient collateral to pro-
=
nsec,e In.m[ thy $ b ms tect len<ters if %?PSS were unable to repay.automat "They need to come up with security for the credit une in the event of bankrugey." said
' manY at one banner. "We certainty 1on t want to be j
at OGCO.
etenas l
[
,, 1 i'
osoustmatoitsns stuck with a nuclear power piant."
In San Francisco. Crocker Nadonal gggjggg g
.,,g*g %.
i Corp., and Wetts Fargo 6 Ca. said they 1
tiavent been approached by WPPSS and importa
.m...
maas co==ames en g
{ wouldn t comment on whether they might M, EM
- [*"* [
f ettend credit to WPPM. BankAmericainCOmit I..~.r m * ~r*
Corp. also wouldn't comment.
A WPPSS' executive board voted May 27 to the FA'
- suspend construction on plant No. 3 for Or,e autOW
{ years if it can't obtain additannat funds. It i
I
} ordered an imrnediate construction slow-, dows b ARbyi c
swa commue u a levei an wooid anow a HEMPSTEAD &CO.
full resumption. Since May 27. WPPSS has naea ne, ie. suJ osoas laid ott 1.350 of the project s 13be work. feaSOr i
?
ss E. t che a.e 1*oei res sore ers.
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Approval For Clearance Per Conversation As Requested For Correction Prepare Repfy Circulate For Your information See Me Comment investigate Signature Coordination Justify nrwas.
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";yry VI 5041-102 OFTIONAL FORM 41 (Rev. 7-76)
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