ML20126D148

Forwards Request for Addl Financial Info.Nrc Requires Info to Complete Evaluation of Financial Capability of Applicants Proposing to Increase Ownership Participation & Evaluation of Financial Capability of Proposed New Owners

ML20126D148
Person / Time
Site:	Seabrook
Issue date:	04/02/1980
From:	Rubenstein L Office of Nuclear Reactor Regulation
To:	Tallman W PUBLIC SERVICE CO. OF NEW HAMPSHIRE
References
NUDOCS 8004170263
Download: ML20126D148 (8)

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UNITED STATES y ; 3 r,( (,g NUCLEAR REGULA TORY COMMISSION

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WASHINGTO'J, D. C. 20555

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f APR 2 1980 Docket Nos.:

50-443 D** D D 'Tl h 50-4M.

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La Mr. W. C. Tallman President Public Service Ccmpany of New Hampshire 1000 Elm Street Manchester, New Hampshire 03105

SUBJECT:

FUBLIC SERVICE CCM.PANY OF NEW HAMPSHIRE, ET AL:

SEABROOK STATION, UNITS 1 AND 2 - REQUESTS FOR ADDITIONAL FINANCIAL INFORMATION By Arend:ent No. 40, and Supplements Nos.1, 2, 3 and 4, to the License Application, the applicants reques;ed Comissicn approval of the partial transfers of the Constructicn Permits for Seabrook Station, Units 1 and 2.

To co. plete our r eevaluation of the financial ca; ability of applicants proposing to increase their o..nership participaticn and our initial evaluation of tne financial capability of ;rcposed new owners, we need the additional information requested in the enclosure. The requested information should be provided by May 1,1980.

If this date cannot be e, please advise us of an alternate date by when the requested information

.a 'l be provided.

Sincerely, cs2A)v.b( Q[

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L. S.'Rubenstein, Acting Chief Light Water Reactors Branch No. 4 Division of Project Management

Enclosure:

Request for Addition al Financial Information cc w/ enclosure:

See next page.

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Public Service Company of New Hampshire ccs:

John A. Ritscher, Esq.

Ropes and Gray 225 Franklin f treet Boston, Massachusetts 02110 Ral ph H. Wood, Esq.

General Ccunsei Public Service Company of New Hampshire 1000 Elm Street Manchester, New Hampshire 03105 Mr. John Haseltine, Project Manager Yankee Atomic Electric Company 21 Tu rn "< e R oad

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- : ::busetts 01581 a

Mr. Bruce B. Beckley, Project Manager Public Service Company of New Hampshire 1CCD E'., Street Manchester, Ne,. Hampshire 03105 "s. Elizabeth H. Weinhold 3 Godfrey Avenue Hampton, New Hampshire 03842 Robert.\\. Backus, Esq.

0'Neill, Backus, and Spielman 116 Lowell Street Manchester, New Hampshire 03105 Norman Ross, Esq.

30 Francis Street Brookline, Massachusetts 02146 Xarin P. Sheldon, Esq.

Sheldon, Harmon & Weiss 1725 I Street, N. W.

1 Washington, D. C. 20006 Laurie Burt, Esq.

Office of the Assistant Attorney General l

Environmental Protection Division One Ashburton Place Boston, Massachusetts 02108 1

Public Servic-f empany of New Ham;snire ccs (continued)

E. Tupper Ki nder, Es q.

Assistant At'ceney General Of fice of At' acnej G:neral 208 State Hot.c.e /nnex Concord, '.ew a::pshi re 03301 Samuel Chil k Secretary of

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.'.uc l ear I;c'j ul a t ury Conni s s i on Wa shi ng ton, D. C. iub55 Alan S. Rosenthal, Esq.

Atcmic Safety and Licensing 'ppeal Board U.S. ticlear ;egulatory Cormission Washingtcn, D. C. 20555 br. Jonn J. Euck Atcnic Safety and Licensing /p;eal Scar-:

U.S. I.uclear ej ulatury Comission Wa shington, D. C. 20555 Nichael C. Fe r ar, Esq.

Atomic Ca:ety ana Licensing /poeal Ecord L.S. Nuclear Reg ulatory Comaission Washington, D. C. 20555

/an W. Laith, m.

Atomic Safety and Licensing Board U.S. Nuclear Peg ulatury Cornission Washington, D. C. 20555 l

Cr. Ernest Salo, Professor Fisheries Research Institute - WH-10 College of Fisheries University of Washington Seattle, Washington 98195 l

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[E[05URE SEABROOK STATION, UNITS 1 AND 2 DOCKET NOS. 50-443 & 50-444 RE0 VEST FOR ADDITIONAL FINANCIAL INFORMATION Responses to each of the information items should be provided for each owner and proposed owner if the applicable code letter, i.e., A, B, or C from the following list, is shown in the parenthesis following the information number.

A.

Investor-0 'ged Applicants

~ ~ ~ 't"rg C1s and Electric sht Company Montaup Electric Company New Bedford Gas & Edison might Canpany Bangor Hydro-Electric Company Central Maine Power Company B.

Municioal and Governmental Applicants Town of Hudson, Massachusetts, Light and Power Department Massachusetts Municipal Wholesale Electric Company Taur. ton Municipal Lighting Plant Commission C.

Cooperatives New Hampshire Electric Cooperative, Inc.

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REQUEST FOR ADDITIO!iAL FillAfiCIAL liiFORMAT10ti SEABROOK STAT 10!i, U::IT tiOS. 1 & 2 1 (A,B,C) Provide :coies of the joint ownership agreement (contract) among the applicants.

The staff will later recuire copies of the agreement af ter it is ex cuted.

The executed agreement mus t necessarily be in sub-stantial conformity witn the agreement previously approved.

Provide a de'. ailed explanation of the provision governing progress pay-ments to be made to the main applicant by each additional participant for its share of all costs of design and construction of Seabrook Station Uni ts 1 and 2.

This may be accomplisned by reference to pertinent portions of the joint ownership agreement.

2 Provide the following information for each applicant:

a(A)

Complete the attached schedule entitled, " Sources of Funds.'or System-Wide Construction Experditures Curing tre Period of Construction of Subject !!uclear Power Pla'1t," througn the years of earliest estimated completicn cf Unit los i and 2.

Indicate the assumptions upon which the

" Sources of Funds" s ta tement is based.

These assumptions include, but are not necessarily limited to:

(a) rate of return on average common stcck equity; (b) preferred stock cividend rate; (c) long-term and short-term debt interest rates; (d) market / book ratio with respect to the pro-jected co:=cn stock offerings: (e) ccmmon stock dividend payout ratio; (f) target and year by year capital structure; (g) resultant SEC and indenture in"arest coverages during each year of the period of const~ ::.=;

and (n) annual gronth rate in kWh sales and price per kWh.

Provide a brief explanation of the basis for each assumption.

If nuclear fuel for the facility is to be acquired by lease or other arrangement than purchase, briefly describe the terms of the lease or Other arrangement,

d(A)

Indicate the percentage ownership in the facility and any difference between this and the participant's percentage entitlement to the electrical capacity and output of the units.

Explain the reason for the difference, if any.

c(A)

Provide copies of the 1979 Report to Stockholders, copies of the prospectus for the Company's most recent security issue and copies of the most recent SEC Form 10-K.

Provide copies of the preliminary prospectus for any pending security issue.

Continue to submit' copies of the Annual Repo-t i

for each year thereafter as required by 10 CFR 50.71(b).

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Provide copies of the most recent Officer's Certificate or Net Earnings Certificate prepared in conjunction with the issuance of mortgage bonds or debentures and showing interest coverage calculations using U.e tests set forth in the applicable indenture.

Explain bondable property addition provisions as they relate to restrictions on the issuance of new long-term debt.

Provide copies of the portions of the indenture relating to interest coverage tests or alternative earnings tests and bondable property additions.

Provide calculations of not earnings and interest coverage for the most recent 12-month period using the definitions of net earnings and annual interest requirements (on debt presently outstanding) using tre most restrictive test set forth in the mortgage bond indenture.

Assumir.g a range of interest rates considered realistic by the utility, state the additional amount of first mortgage bonds which could be issued under the most restrictive test based on net earnings as defined by the indenture for the most recent 12-month period.

c : orate charter contains a preferred stock coverage requirement, provice copies of that portion of the charter. Assuminq a range of dividend yields considered realistic by the utility, state the additional amount of preferred stock that could be issued by applying the most restrictive test for preferred dividend coverage for the most recent 12-month period, f (A)

Provide a detailed explanation of all other restrictions or constraints on the issuance of short and long-term debt, preferred stock, preferen' e c

stock'and common stock.

Short-term debt should include bank lines of credit and comercial paper, i f any.

Indicate compensating balance require-ments for bank loans.

g (A)

Describe the nature and amount of the Company's most recent rate relief action and the anticipated effect on revenues. Provide copies of the rate order and opinion.

In addition, indicate the nature and amount of any pending rate relief action (s).

Use the attached form to provide this in forma tion.

Provide copies of the submitted, financially-related testimony and exhibits of the staff and company in the most recent rate relief action or pending rate relief request.

Describe aspects of the Company's regulatory environment including, but not necessarily limited to, the folicwing: prescribed treatment of allowance for funds used during construction and of construction work in progress (indicate percentage and amount included in rate base); form of rate base (original cost, fair value, other); accounting for deferred income taxes and investment tax credits; and fuel adjustment clauses in effect or proposed.

h(A)

Provide a list of generating units, transmission and distribution facilities and general plant projects to be constructed during the period of construction of the subject nuclear power plant, showing the type of facility, net capacity of each generating unit, the dollar amounts to be expended for each facility during each of the years involved, and in-service date of each facility.'

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. 1(A)

Complete the a ttached form entitled, " Financial Sta tistics" for the most recent 12-month period and for the years ending December 31, 1978 and Datember 31, 1977.

3(B)

For each municipal and governmental applicant:

Provi".'e a detailed state ert of the projected sources of funds and a.

respe::ive dollar arounts for the applicant's total contributions to the capital costs of Seabrock Statian, Units 1 and 2.

Include a detailua explanation of the a:tum;tions upon which the projected scurces of funds are based.

b.

If the applicant is to finance its ownership share with bonds, indicate the source of funds for payment of interest charges and principal.

Describe the nature, amount, ra ting, and success of the applicant's c.

rest recent revenue and general cbligation bond sales.

Indicate the current total outstanding indeb;cdness in each category for each entity.

d.

Provide copies of the Tost recent (:ecerter_ 1979 Annual and most recent six-nonth and 12-month) Financial Statements of the applicant.

Is eac' participant's percentage owne snio share in the facility equal to e.

its pen:ertage entitlement in tne ela:trical capacity and output of

• he ol. ant' if not, explain Pe dif fu ence(s) and any resultant ef fect on any participant's obligation to provide its share of design and Constructi0n Costs.

f.

Describe ; e rate-setting authority of the applicant and how that authority may be used to ensure the satisfaction of financial obligations under the Purchase and Osnership Participation Agreements for Seabrook Station.

4(C)

For the cooperative applicant:

Indicate the percentage ownership in the facility and any difference a.

between this and the cooperative's percentage entitlement to the electrical capacity and output of the units.

Explain the reason for the difference if any, b.

Provide a detailed statement of the projected sources of funds and respective dollar amounts for the cooperative participant's total contribution to the subject project.

Include a detailed explanation of the assumptions upon which the projected sources of funds are based.

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. Indicate the amounts of the respective dollar payments to be made by c.

the cooperative system participant upon execution of the ownership agreement.

Provide estimates of the total additional parents (O R made subsequent to the execution of the agreement and through' co1.pletton of the units, d.

If financing is to be provided through REA guaranteed sources, the applicant rust provide copies of favorable letters of intent from REA regarding the proposed REA loans.

These must be provided prior to issuarce of amendments to the construction permits.

Indicate whether the REA has provided loans to the applicant in the past.

Provide copies of excerpts from state statutes on which the cooperative is relying as authority to incur debt and to take other actions necessary to acquire partial ownership of the subject facility, e.

Describe the rate-setting authority and rate covenants of the cooperative

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that authority will be used to ensure the sa tisfaction of financial obligations in relation to the design and construction of Seabrook Station, Units 1 and 2.

f.

Provide copies of the December 1979 and the most recent twelve months firincial statements and other relevant financial information.

5 In the event that the cost estimates submitted with Amendment No. 40, dated t'ay 1c,1979 have changed significantly, provide the most recent cost estirate grouped as follows:

(a) total nuclear production plants' costs; (b) transmission, distribution, and general plant costs; and (c) nucl' ear fuel inventory cost for the first core.

The cost estimates should be in dollars escalated through the year of construction completion.

Also, com-plete the attached schedule entitled, " Plant Capital Investment Summary,"

using the most recent cost estimates.

Indicate the estimated site labor requirements expressed as " man-hours /kWe."

Indicate the average site labor pay rate in dollars per hour (including fringe benefits) effective at month and year of NSSS purchase.

Also, indicate any changes in the estimated month and year of construction start for each unit and the earliest and la-test estimated dates for completion of construction of the unit.

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