ML20206J670
| ML20206J670 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 11/14/1988 |
| From: | Dignan T PUBLIC SERVICE CO. OF NEW HAMPSHIRE, ROPES & GRAY |
| To: | |
| Shared Package | |
| ML20206J674 | List: |
| References | |
| CON-#488-7506 OL-1, NUDOCS 8811290071 | |
| Download: ML20206J670 (4) | |
Text
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000KETE0 USNRC November 14, 1988
'88 RW 17 A11:19 l
UNITED STATES OF AMERICA t
rrt-before the
.L NUCLEAR REGULATORY COMMISSION In the Matter of
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PUBLIC SERVICE COMPANY
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Docket Nos. 50-443-OL-1 OF NEW RAMPSHIRE, 31 31
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50-444-OL-1
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(Seabrook Station, Units 1
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(Onsite Energency
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and 2)
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Planning and Safety
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Issues)
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1 APPLICANTS 8 ADVICE TO THE CONNISSION i
Pursuant to its obligation to keep the Commission informed of matters which may effect issues in litigation l
before it, Applicants attach hereto a letter of November 10, I
1988 (NYN-88148) from Edward A. Drown, CEO of Nov Hampshire Yankee Division of Public Service Company of New Hampshire to j
Victor Herses, USNRC Project Manager for Seabrook (Attachment l
i A) and Agglicants Statement as to Status of Record as to PSNH Bankruotev dated November 14, 1988 (Attachment B).
Respectfully submitted, l
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l Whoma~s G.
Dignan,'Jr.
i George H. Lavald l
l Kathryn A. Selleck j
Jeffrey P. Trout L
I Jay Bradford Smith Ropes & Gray 225 Franklin Street Boston, MA 02110 (617) 423-6100
?Sk**?D0?k$$$$\\$43 counsel for App 11 canes 0
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11/10/1963 16:11 ter GES.A.ATCAf SENME5 1 603 474 9374 4413 F.02 M*IINI New Hampshire Yankee DMelon Novosiber 10, 1988 United states Nuclear Regulatory Cornission Washington. DC 20333 Attentions Mr. Victor Heroes Project Manager
Reference:
Facility operating License NFP.36, Docket No. 50-443 Dear Hr. Norses This letter responds to your letter of October 23 and its questions e
concerning the motion filed on October it. 1988 (the 'Hotion') in the bankruptcy proceedings involving Public Service Company of New Nampshire
('PSNE') and to your subsequent cral request for an update on the status of negotiations between PsNN and Hassachusetts Municipal Wholesale Electric Company ('HHVEC').
Vith respect to the first question, as you indicated the Motion requested the Bankruptcy Court to extend the 'bar date' with respect to any potential claims by two contractors and tha praast.t ar.d ferrar Joint Owners from na.aker st, t e s e,
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rh. it. t.n... gr.ns.a by the coun m October 23, 1988.
The 'bar date' is a procedural deadline in a bankruptcy proceeding. Claims filed on or before that date would be adjudicated and, if allowed, would be entitled to appropriate compensation under the ultimate reorganisation plan to be approved by the Court. Any claims not filed by that date are forever barred.
The parttee affected by the Motion have for some time been involved in discussions seeking an understanding of their alleged potential claise arising i
from their respective involvement in the Seabrook Project.
In general, we believe that, in large part, the alleged potential claims relate to delays and l
costs incurred by the Seabrook Project and for performance by PSNil under the Joint Ownership Agreement. Vhile the precise scope and size of these claims have never been defined and none have been filed and the merits thereof have never been adjudicated, it now appears that a timely resolution will be l
reached by the Joint Owners which will obviate any need to quantify these claims as described in more detail below in response to your second question.
P se P.O. Box 300. Seabrook. NH 03574. Te!ephone (803) 47a.9574
11,10 irss 1stik rm adw M t iW NE5 1 c03 474 M74 4413 A.03 United States Nuclear Regulatory Commission
- November 10. 1988 Attention: Victor Heroes. Project Manager Page 1 For this discueelen however, the overriding fact remaine that, regardises of the potential site of these alleged claims, and whatever the outcome were they to be adjudicated, those claise would not affect the financial qualifications of F5NN. If disallowed, they are barred. If allowed, they become additional unescured creditor claims on e.he assets of the debtor which would be entitled, along with all other claims, to appropriate recognition in the reorganisation plan ultimately approved by the Court. That plan must soeurs that the surviving corporation is a viable entity with anticipated revenues sufficient to assure coverage of its on. going operations and service of its debt securities. Clearly, an important element of those on-going operatior.e would be the ability of PSMR to continue to meet its obligations to the Seabrook Project under the Operating License. Based on the positions of the parties to daa.e. we are confident that those obligations to the Seabrook Project will continue to be a primary concern of PSNH. the other parties to the proceeding and the Court as reorganisation proposals are formulated in the pending proceeding.
As to your second question, a significant step has been taken toward resolution of the uncertainties with respect to NHVIC's continued participation in the Seabrook Project. On November 4,1988, a Memorandum of Understanding ('HOU') was executed by H4WIC and P5NH which sets forth the bases for a final resolution which will be memortalised in one or more l
agreemente. In essence. the HoU provides that (1) HNVIC remains a participant l
in the Seabrook Project. (ii) PSNM shall advance up to $30 million to pay l
HHVEC's share of the pre. commercial. operation costs of the seabrook Project and related transmission costs and property taxes due af ter October 31, 1988 l
until Seabrook Unit 1 commences operation or is cancelled, whichever first occure s (iii) the Seabrook capacity purchase Agreement between F8NE and MKVEC is terminated (iv) MfVIC remaine liable for their share of decommissioning costs and cancellation costo up to $10 million if Seabrook is cancelled before going into service and #8NN assumes any excess of such costs allocable to HHVTC's share of th9 seabrook Projects (v) HMVIC remaine responsible for its share of the operating costs of the Seabrook Project after it commences t
operations and (vi) HHWIC and PtNN as well as all other present and former Joint Owners and Yankee Atomic Electric Company, agree not to sua one ancther for any Seabrook related claine.
The MOU enumerates several conditions which must be satisfied prior to its effective date including approval by the directors of both parties, execution of bsplementing agreemente by the Joint Owners, covenante not to sue with respect to seabrook related claims among all present and former Joint Ownere and Yankee Atomic Electric company. P5NX obtaining financing for its i
830 million commitment and certain other procedural steps. The settlement le also subject to approval by the tankruptcy Court and this will be sought in the near future.
Those aspects of the MOU which require agreement by the other present and forrer Joint Ownere have been generally discussed with those parties which are now reviewing the specifice in the MCU.
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United States Nuclear Regulatory Coemission*
November 10. 1948 Attention: Victor Heroes. Project Manager Page 3 MHVEC and PSNM have scheduled meetings of their respective Bostdo in the near future to take action with respect to the MOU. New Hampahire Yankee (NNY) has been informed that soet opposition to the MOU exists among HHWIO's members and that legal proceedings may be instituted against HNWICI however.
MHW10 is attempting to negotiate a resolution of this situation.
PSNN is edgeged in discussions with financial institutions with respect to the financing referred to above.
Steps are being taken to entisfy the other conditions.
Ve will keep you informed of developments as they occur.
Very truly yours.
', ). m __
Edward A. trewn President and Chief Executive officer cci ASL3 Service List (On Site)
Mr. Villiam 7. Russell Regional Administrator Region I United States Nuclear Regulatory Commission 473 Allendale Avenue King of Prussia PA 19406 Mr. David C. Ruscitto Nic senior teeident Inspector 7.0. Bos 1169 Seabrook. NH 03874 l
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