ML20098H116
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P W shington Public Power Supply System A JOINT OPERATING AGENCY S
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nion. o. w..s.uarom..as a e ouc i so.,.4..ieii Docket No. 50-513 December 30, 1977 G01-77-864 Nuclear Reactor Regulation Light Water Reactor Project Branch No. 3 U.S. Nuclear Regulatory Cocinission Washington, D. C.
20555 Attention: Mr. Olan D. Parr
Subject:
WPPSS NUCLEAR PROJECT N0. 4 SUBMITTAL OF INFORMATION FOR CONSTRUCTION PERMIT
Reference:
Letter, D.L. Renberger, WPPSS, to Olan D. Parr, NRC, same subject, dated December 9,1977.
Dear Mr. Parr:
The reference transmitted three affidavits which were to be submitted to the WNP-4 Licensing Board to update the evidentiary record.
The affidavit of Mr. James D. Perko updating the record on Financial Qualifi-cations included a table titled, " Construction Projects Financing Activities, llovember 16, 1977." The fourth entry in this table, a $180,000,000 sale cf November 9, 1977 for WNP-1, needs to be deleted. As will be apparent from the discussion below, this change in no way affects the Supply System's finan-cial qualifications to construct WNP-4.
After the sale of these bonds, on November 9, 1977, but before the under-writing firm accepted delivery, a suit was filed on November 14,1977 in the U.S. District Court of the District of Oregon by the City.f Portland and others against the Bonneville Power Administrator and the Secretary of the Department of Energy which alleged that the BPA net billing agreements are
" null and void" and asked that the agreements be declared invalid because BPA has not prepared and distributed environmental impact statements related to the agreements.
Due to this change in circumstances, the underwriting group in-formed the Supply System on December 6,1977 of theirTdecision_notlo-accept delivery 1f theWnds, ~despite opinions by bond council, special council and couricR for the underwriters that the allegations in the suit were "without substantial merit."
8409110510 840824
December 3D,1977 G01-77-864
- Page 2 Prior to the. decision of the underwriters, Standard and Poor's and Moody's
. investor service reaffirmed their Triple A ratings for these bonds.
It is the Supply System's' intent to' proceed with its financing program for WNP-1 during early 1978. At the present time, the Supply System financing program calls for financing of Projects Nos. 4 and 5 shortly after the first of.the year. We are ' currently in the process of developing necessary marketing documents 'to effectuate a sale of bonds for these projects in January 1978.
It should be understood that WNP-4 is not a " net-billed" project and as such the financing of WNP-4 is in no way effected by the above described action.
Very truly yours, D~l 0bLyv D.L. RENBERGER Assistant Director -
Generation & Technology DLR:AGH: cab cc: JB Knotts, Debevoise & Liberman NS Reynolds, Debevoise & Liberman TH Cox, NRC
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DOCKET NO. 5 -513 Submittal of information for Construction Permit STATE OF WASHINGTON ss
_ COUNTY OF BENTON
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D. L. RENBERGER, Being first duly sworn, deposes and says:
That he is the Assistant Director, Generation and Technology, for the WASHINGTON PUBLIC POWER SUPPLY SYSTEM, the applicant herein; that he is authorized to submit the foregoing on behalf of said applicant; that he has read the foregoing and knows 'the contents thereof; and believes the same to be true to the best of.his knowledge.
l DATED MM t M
, 1977 O
asyn D. L. RENBERGER On this day personally appeared before me D. L. RENBERGER to me known to be the individual who executed the foregoing instrument and acknowledged that he signed the same as his free act and deed for the uses and purposes therein mentioned.
A%It
~1977.
GIVEN under my hand and seal this S/7 day of
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Notary Public in and-for/the State of Washington
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Residing at
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' My P.O. B O X 968 RICHL AND WN.
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99 3 5 2 TEL. 509 94 6-1611 FOR llVIEDI ATE RELEASE - flovember 21, 1977 WPPSS flews Release flo. 77-74 R. F. flowakowski, Information Of ficer Page 1 of 2 ATTORtlEYS REVIEW PORTLAtID LAWSUIT The Washington Public Power Supply System and the City of Eugene, Oregon announced today' that on llovember '14,1977 two lawsuits were filed in the United States District Court for the District of Oregon (Cases tios.77-928 and 77-929) by the City of Portland, Oregon, its flayor and four City Commissioners. The suits are against Donald P. Hodel, the Bonneville Power Administrator, and James Schlesinger, the. Secretary of the Depart-ment of Energy of the United States of America.
In the first suit the plaintiffs seek a court declaration that the City of Portland is a preference customer entitled to a power sales contract from Bonneville.
In the second suit plaintiffs seek a declaration that all Bonneville power sales contracts, extensions thereto, and net billing agreements entered into by Bonneville after January 1,1970, are null and void based on plaintiffs' claim that such contracts were d*
executed without the preparation of an environmental impact statement under the flational Environmental Policy Act of 1969.
In the case of the City of Eugene, it has net billing agreements which were entered into in 1970 in-connection with its outstanding $154,215,000 of Trojan iluclear Project Revenue Bonds, Series of 1977.
These net billing agreements provide for the payment of such bonds until such time as the city may elect to take into its own system its 30 percent share of the power produced by the Trojan lluclear Project.
The project 4
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uit completed. i_n 1975 and ha, been. in operation since that time.
1 In the case of the Supply system, it'has net billing agreements which were entered-
'into durino 1971 through '1973 and which pt: ovide the security for its outstanding 11.215.9'10,000 of bon'ds issued for -its fluclear Projects flos.1, 2 and '3 and an a d li t i.ona l. $ 180,000,000 of its hands' for its fluclear Project flo.1, sold on flovemb.er 9,
.1977 and scheduled to be delivered to the purchasers in Occcmber 1977.
The purchasers are a syndicate led by Smith,liarney,liarris,lipham and Co.,-incorporated.
Such net billing agreement, also supplement _ the securit'y for the Supply System's llanford Project Electric' Revenue Ronds of which 151,200,000 were outstanding as of October 1,1977.
The Supply. Syr, tem's' nuclear projects have been under construction beginning --in 1972 luirsuant to authorizations from.the United States fluclear Regulatory Coninission.
Ilie supply System and the City of Eugene stated that their attorneys are reviewing
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these law uits, tooether with.the attorneys for the Bonneville Power Administration.
If. was pointed not by the Supply System and Eugene that extensive environmental impact s t a t crien t.- for nach project, were prepared and issued by the fluclear Regulato'ry Cnneniv. ion and the Atomic Ener<r/ Cormission, its predecessor agency, and were the.
subjoct of, lengthy public hearin<n on environmental concerns.
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99352 TEL. 509-946-1611 FOR IMMEDIATE RELEASE - December 7, 1977 WPPSS News Release No. 77-83 R. F. Nowakowski, Information Officer Page 1 of 2 SYNDICATE DECLINES TO ACCEPT BOND ISSUE A $180-million bond issue sold on Nov. 9 will not be accepted for delivery by the successful syndicate managed by Smith, Barney, Harris, Upham and Co., New York, the Washington Public Power Supply System was informed Tuesday.
Smith, Barney informed the Supply System that the reason the underwriting syndicate was notaccepting delivery of the bonds was the change in circumstances which required a qualified legal opinion from WPPSS's bond and special counsels.
The bonds had been purchased and resold on Nov. 9 '-
...,ualified legal opinion.
A contributing factor to the syndicate's decision was the decline in general market price levels which occurred during this period.
"The decision by the syndicate is disappointing," said J. D. Perko, Supply System Assistant Director for Finance and Administration and Treasurer.
"However, we intend to proceed with our financing program as prepared for the next year," he said.
The bonds, rated " Triple A" by both Standard and Poor's and Moody's rating services, were sold at an effective interest rate of 5.497 percent.
The ratings were subsequently reaffirmed after closing of the sale was delayed.
An allegation that the Bonneville Power Administration's (BPA) net billing agreements were " null and void" was found to be "without substantial merit" by bond counsel, special counsel and counsel for the underwriters.
n Syndicate declines to accept bond issue WPPSS News Release No. 77-83 Page 2 of 2 The allegation was made in a lawsuit filed Nov. 14 in the V. S. District Court for the District of Oregon by the City of Portland, Oregon, its Mayor and four City Comissioners seeking to have the. agreements declared invalid because BPA had not prepared and distributed environmental impact statements related to the agreements.
Proceeds from the bonds were to be used to finance a portion of the cost of the Supply System's Nuclear Project No.1, being built at Hanford. The net billing agreements with project participants and owners provide security for the bonds.
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C 993 5 2 T EL. 509-946-1611 FOR If41EDIATE RELEASE - November 30, 1977 WPPSS News Release No. 77-77 R. F. Nowakowski, Information Officer Page 1 of 1 NET BILLING AGREEMENTS ARE VALID, WPPSS ATTORNEYS SAY A lawsuit against Bonneville Power Administrator (BPA) and the Secretary of the Department of Energy brought by the City of Portland is "without substantial merit" as it relates to net billing agreements, bond counsel and special counsel for the Wasnington Public Power Supply System said today.
The net billing agreements provide security for revenue bonds issued and to be issued for the Supply System's Nuclear Projects 1, 2, and 3.
The lawsuit, filed Nov.14 in the U. S. District Court for the District of Oregon, claims that BPA did not prepare, publish, circulate and file a detailed Environmental Impact Statement for each net billing agreement entered into after the National Environmental Policy Act (NEPA) became effective on Jan. 1, 1970.
The comolaint asks a declaratory judgment declaring such net billing agreements null and void, enjoining the performance of such net billing agreements and an order requiring the defendants to prepare, publicly circulate, file and consider a final and adequate Environmental Impact Statement for each such net billing agreement.
Copies of the forms of the revised opinions of counsel relating to the Supply System's $180 million Nuclear Project No.1 revenue bonds, Series 1977, sold Nov. 9, have been made available to Covington and Burling, counsel to the prospective bond i
purchasers and are available to other interested parties at Charles P. Young and Co., 75 Varick St., New York, N. Y.
Covington and Burling is now reviewing the opinions which were made available to the Supply System.
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...ie u FOR.IMMEDIATE RELEASE - December 16, 1977 WPPSS News Release No. 77-88 R. F. Nowakowski, Information Officer Page 1 of 1 WPPSS WILL DEFEND ITS INTEREST IN LAWSUIT SEATTLE -- The Washington Public Power Supply System will defend its interests in a lawsuit brought by the City of Portland and others against the Bonneville Power Administrator and the Secretary of the Department of Energy.
The Supply System's Executive Committee said Friday it is giving Managing Director N. O. Strand the authority to take any action necessary to protect the Supply System in the action.
The suit, filed in the U.S. District Court for the District of Oregon on Nov.14,
. alleges that Bonneville Power Administration's (BPA) net billing agreements are " null and void" and asks to have the agreements declared invalid because BPA had not pre-pared and distributed environmental impact statements related to the agreements.
The agreements with Supply System project participants and owners provide security for revenue bonds used to finance three nuclear power projects now under construction.
The suit was filed after the Supply System sold $180 million in revenue bonds Nov. 9 for its Nuclear Project No. I and resulted in the underwriting firm not accepting delivery, despite opinions by bond counsel, special counsel and counsel for the underwriters that the allegations in the suit were "without substantial merit."
The Executive Committee's action Friday permits the Supply System to enter the legal proceedings.
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s Washington Public Power Supply System A JOINT OPERATING AGENCY P. o. sox see sooo cao. wasmnarom way nicnuno. wasnimoron sessa pnonstsoe n e4e.teit Docket No. 50-513 December 30, 1977 G01-77-864 Nuclear Reactor Regulation Light Water Reactor Project
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9 Branch No. 3 j{f U.S. Nuclear Regulatory Comission 3
- f h Washington, D. C.
20555 Attention: Mr. Olan D. Parr U AN 4 1978
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Subject:
WPPSS NUCLEAR PROJECT N0. 4 y
SUBMITTAL 0F INFORMATION FOR S/
CONSTRUCTION PERMIT
Reference:
Letter, D.L. Renberger, WPPSS, to Olan D. Parr, NRC, same subject, dated December 9,1977.
Dear Mr. Parr:
The reference transmitted three affidavits which were to be submitted to the WNP-4 Licensing Board to update the evidentiary record.
The affidavit of Mr. James D. Perko updating the record on Financial Qualifi-cations included a table titled, " Construction Projects Financing Activities, November 16, 1977." The fourth entry in this table, a $180,000,000 sale of November 9, 1977 for WNP-1, needs to be deleted.
As will be apparent from the discussion below, this change in no way affects the Supply System's finan-cial qualifications to construct WNP-4.
After the sale of these bonds, on November 9,1977, but before the under-writing firm accepted delivery, a suit was filed on November 14, 1977 in the U.S. District Court of the District of Oregon by the City of Portland and others against the Bonneville Power Administrator and the Secretary of the Department of Energy which alleged that the BPA net billing agreements are
" null and void" and asked that the agreements be declared invalid because BPA has not prepared and distributed environmental impact statements related to the agreements.
Due to this change in circumstances, the underwr-iting group in-formed the Supply System on December 6,1977 of their decision not to accept delivery of the bonds, despite opinions by bond council, special council and council for the undemriters that the allegations in the suit were "without substantial merit."
l 780050065
December 30, 1977 s
G01-77-864
'Page 2
)
Prior to the decision of the. underwriters, Standard and Poor's and Moody's
~
investor service reaffirmed their Triple A ratings for these bonds.
i It is the Supply System's intent to proceed with its financing program for
- WNP-1 during early 1978. At the present time, the Supply System financing program calls for financing of Projects Nos. 4 and 5 shortly after the first of the year. We are currently in the process of developing necessary marketing documents to effectuate a sale of bonds for these projects in January 1978.
It should be understood that WNP-4 is not a " net-billed" project and as such the financing of WNP-4 is in no way effected by the above described action.
Very truly yours, cC l 0 GL.y~.'
D.L. RENBERGER Assistant Director -
Generation & Technology DLR:AGH: cab -
cc: JB Knotts. Dabevoise & Liberman l
NS Reynolds, Debevoise & Liberman TH Cox, NRC 4
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t DOCKET NO. 50-513
~
Submittal of information
- e. ',.
for Construc, ion Permit t
STATEOFWASHINGTON)) ss COUNTY OF BENTON
)
D. L. RENBERGER, Being first duly sworn, deposes and says: That he is the Assistant Director, Generation and Technology, for the WASHINGTON PUBLIC POWER SUPPLY SYSTEM, the applicant herein; that he is authorized to st.bmit the foregoing on behalf of said applicant; that he has read the foregoing and knows the contents thereof; and believes the same to be true to the best of his knowledge.
DATED Mes A T O
, 1977 OY syn D. L. RENBERGER i
On this day personally appeared before me D. L. RENBERGER to me known to be the individual who executed the foregoing instrument and acknowledged that he signed tne same as his free act and deed for the uses and purposes therein mentioned.
GIVEN under my hand and seal this So-day of
, 1977.
L
$YJ Notary Public in and-4 /the State of Washington Residing at AAIm
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