ML20094S433
| ML20094S433 | |
| Person / Time | |
|---|---|
| Site: | Beaver Valley |
| Issue date: | 04/10/1992 |
| From: | Doris Lewis CLEVELAND ELECTRIC ILLUMINATING CO., SHAW, PITTMAN, POTTS & TROWBRIDGE, TOLEDO EDISON CO. |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NUDOCS 9204150036 | |
| Download: ML20094S433 (2) | |
Text
__ _,__ _ _ _ _. _ _
a SHAW, PITTMAN, PoTTs & TROWBRIDGE
....-..m_-,,,,...e~.m.,.,e.
e3co u star rt, u
- eo es'elll2'EL.m d,"*. l%M',,,,
<>oa>.n.,.. u
"" NA"T,"a" "
,m (707 6 3 07 A(ril 10, 1992 omio n aw s By lland Delivery U_.S. Nuc19ar Regulatory Commissicn Attn Document Control Desk One White. Flint North 11$55 Rockville Pike Rockville, Maryland 20852 Ret Denver. Valley Power Station, Unit 2 Docket No. 50-412; Licenac No. NPF-73 Refinancing of Sale and Leaseback Transactions Dear Sirs By Amendment No. 1 issued on September 23, 1987, to License No. NPP-73, the NRC authorized licensees including The_ Cleveland Electric Illuminating Company (CEI)-and The Toledo Edison Company (TEd) to enter into sale and leaseback transactions for the Bea-ver Valley Power Station, Unit 2.
As a condition of approval,
~
the Amendment requires prior written notice of any change-in, inter dip, the terms or conditions of any lease agreements exe-cuted a*t of the transactions.
v s
% p'rticipants in the sale and leaseback transactions sub-Fequ'. M 1XOcuted by CEI and TEd are currently preparing to refin m e certain debt obligations incurred in connection with the transactions.
Such refinancing is permitted under the origi-nal transaction documents reviewed by the NRC prior to the issu-ance of License Amendment No.
1.
In connection with the refinancing, certain minor amendments are being made to the facility leases.
This letter is being delivered to provide the required notification of these changes.-
The primary purpose of the amendments to the respective facility leases is to adjust basic rent and change the schedules of Casualty Values, Special Casualty Values, and Modified Special Casualty Values _in order to reflect the_effect of the refinancing on the amounts required to be paid under the leases.
Changes _are also being made to cc aform the definitions to the f acts of the
/
9204150036 920410 D
PDR ADOCK 05000412 I
PDR j
i.h
e SHAw, PITTM AN, PoTTs & TROWBRIDGE
.m..t..
- w m
....,c mco.
.m U.S. Nuclear Regulatory Commission April 10, 1992 Page Two refinancing, and in the case of one lease, to reticut can assign-ment of interest between affiliated investors.
In addition, changes are being made to the facility leases, as well as to the participation agreements, to reflect CEI's and TEd's commitment to accumulate decommissioning funds by the license expiration date in accordance with NRC and PUC require--
ments.
The original transaction documents, which were executed before the NRC promulgated its decommissioning rules, reflected a commitment by CEI and TEd to the equity investors to fund decom-missioning costs at an sccelerated rate to accumulate such funds by the end of the lease term (i e. over approximately a 29-1/2 year period).
This accelerated funding above NRC requirements is being relaxed so lon] as sufficient Decontamination Liability &
Excess Property insuranc6 (NEIL 11) is maintained.
CEI and TF,d remain obligated to meet vnatever decommissioning requirements are imposed upon them by c mer the NRC or the Ohio Public Util-ity Commission.
Pone of the changes to the facility leases affects operation of the plant, prevents or impairs compliance with NRC require-Inents, or otherwise adversely af fects any NRC regulated activity Respectfully submitted, 31 itLL
~
David R. Lewis Counsel for Licensees DRLich cca U.S.
NRC Region 1 Resident Inspector, BVPS Unit 2 Albert W.
De Agazic, Sr. Project Manager Project Directorate I-4 (by hand delivery)
-