ML20206J877
| ML20206J877 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 11/18/1988 |
| From: | Backus R BACKUS, MEYER & SOLOMON, HAMPTON, NH, NEW ENGLAND COALITION ON NUCLEAR POLLUTION, SEACOAST ANTI-POLLUTION LEAGUE |
| To: | NRC COMMISSION (OCM) |
| References | |
| CON-#488-7534 ALAB-422, OL-1, NUDOCS 8811290158 | |
| Download: ML20206J877 (28) | |
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CCLKETED N6HC November 18, 1988
'88 M]7 21 P4 :55 UNITED STATES OF AMERICA BEFORE THE NUCLEAR REGULATORY COMMISSION
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DocketNo.50-443-OL-14[YY"g-[-
In the Matter of'
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PUBLIC SERVICE COMPANY
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OF NEW HAMPSHIRE, et al.-
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(Onsite Emergency
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Planning and Safety
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Issues)
(Seabrook Station, Unit 1)
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INTERVENOR OBJECTION AND RESPONSE TO "APPLICANTS' ADVICE TO THE COMMISSION" OF NOVEMBER 14,-1988 NOW COME the Seacoast Anti-Pollution League, New England Coalition on Nuclear Pollution and Town of Hampton and reply to l
the Applicants' November 14th filing with the Commission of a two-I part advisory purpcrtedly "Pursuant to its obligation to keep the Commission informed of matters which may affect issues in litigation before it.
The first part of the advisory is a letter from PSNH to the NRC staff (NYN-88148), and the second is a supererogatory document styled "Applicants' Statement as to Status l
of Record as to PSNH Bankruptcy."
The filing of this advisory is in flagrant disregard of the Commission's rules and reflects the Applicants' evident belief that they can, without even request for leave to do so, file whatever they want with the Commission whenever they want although
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the Commission is now acting as the supreme tribunal within the agency.
To quote the Applicants themselves, "This practice should be stopped."1 Under 10 CFR S2.730, a party to Commission's proceedings may file a motion, and opponents may respond within ten days, but "The moving party shall have no right to reply, except as permitted by the presiding officer.
- Moreover, the Commission itself has set out a schedule for responding to the appeal on the financial qualification waiver issue, and for responses to the Appeal Board's decision certifyi.ng the waiver petition.
Applicants have already availed themselves of those filing opportunities.
If the Applicants felt there was some matter of recent vintage that had to be brought to the Commission's attention, they should have filed a Motion fer Leave to do so, as the intervenors have done, and not merely undertaken to file self-serving pleadings.
i In this instance, the proposed pleading entitled "Applicants' l
i Statement as to Status of Record as to*PSNH Bankruptcy" does not 1/ On September 30th, in a pleading before this Commission entitled "Applicants' Response to Motion of Massachusetts Attorney General James A. Shannon for Leave to File a Document Not Authorized by the Commission's Rules of Practice," the Applicants sneeringly decried the Massachusetts Attorney General for the "continuing practice of seeking leave to, and making, filings (now the fourth) which are not authorized by the commission's Rules.
This practice should be stopped."
(P. 2, footnote 2)
Obviously, the Applicants in this situation, as well as in others, believe that the Commission's Rules should apply only to the intervenors and not to them. I
even purport to advise the Commission of new developments in the Bankruptcy Coutt, but inste 3 re-asserts the Applicants' oft-stated view that the bankruptcy of the lead owner should be treated as a nonissue, and that to deny them an operating license because they were unable to demonstrate that s bankrupt licensee would be financially qualified would violate the Bankruptcy Code!
The Applicants cite 11 USC 5525(a), although this section of cour e cannot operate to deprive this Commission of its duty to insure that its licensees are financially qualified, a duty which is at the least particularly acute in the event of the bankruptcy of the lead Applicant.2 As such, the Applicants' filing is particularly reprehensible, since it amounts to nothing more than an unauthorized and unjustified recitation of points already made to the Commission, or statements of points which should have been made in authorized pleadings.
(See Applicants' answer to the 2/ Further 5525(a) was never intended to allow avoidance of a determination that the debtor is financially qualified to undertake new or expanded financial responcibilities.
"It (Section 525) does not prohibit consideration of other factors, such as future financial responsibility or ability, and does not prohibit imposition of requirements such as net capitol rules if applied nondiscriminatorily."
Senate Report number 95-989.
Applicants' construction of Section 575 would in effect grant PSNil greater rights to avoid financial que.ification review than nonbankrupt applicants.
That was nst the intent of the law.
In re:
Profeccional Sales Corp., 56 Dr. 753 (N.D. Ill.1985) _
^
f Intervenors' "Appeal of Partial Denial of Waiver Request of July 26, 1988", p. 4).
Nonetheless, should the Commission decide to entertain the Applicants' November 14 Advisory, the Intervenors hereby request leave to flie the attached response.
RESPONSE TO APPLICANTS' STATEMENT AS TO STATUS "Applicants' Statement as to Status of Record as to PSNH Bankruptcy," is actually not a statement as to status, but an advocacy document urging two positions.
The first is a dissertation on Chapter 11 of the Bankruptcy Code., which the Applicants claim supports the conclusion that PSNH bankruptcy will result in no financial quality concern because "[a] filing for reorganization is not a precursor to liquidation."
(P. 3)
The second part of their document is a highly selective "chronology of events and a summary of the material heretofore filed.
." intended to suggest that tha Bankruptcy Court i
supports Seabrook funding and, inferentially, Seabrook licensing.
As to the first position, Applicants have fai:*4 to indicate i
that not only can a Chapter 11 reorganization be turned into.
liquidation proceeding under Chapter 7, a not unprecedented event, (see 11 USC S 1112(b)) but that Public Service Company as debtor in possession has itself raised the possibility of its own liquidation.
"t tid so in its "Memorandum of Public Service i
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Company in Support of Motion to Extend the Plan Exclusivity Periods" filed on April 28, 1988.
At that time, PShH stated, in a section subtitled "Liquidation," as follows:
Piece ceal sales of portions of Public Service's a: sets to different buyers may also provide a basis for a plan.
Sale of distribution assets to a utility with excess capacity, coupled with sales of generating facilities to local, regional, or foreign utilities that are short on capacity might generate more value than a sale of all operating assets to a single entity.
Before its Chapter 11 filing, obstacles similar to those hindering a corporate restructuring stood in the way of a liquidation.
Public Service must evaluate this alternative, not only as an alternate to an integrated reorganization, but also to meet plan confirmation commitments.
11 USC Sil23(a) (5) (D), ll29 (a) (7).
(See Attachment A)
It seems likely that the plan PSNH is required to file by December 27th, when its exclusivity period ends, will not be a liquidation plan.
Rather, it is widely reported that this plan will call for reorganization of PSNH into a federally regulated holding company.
The most desirable reorganization option is to reach a negotiated settlement in New Hampshire -- where the State would provide PSNH with appropriate and necessary rate increases in return for retaining full regulatory authority over the Company's electric business.
This alternative has the potential to be the quickest path out of bankruptcy:
if fair and thus acceptable to all major parties, it would improve the prospects for a consensual reorganization plan which would be the quickest way to resolve the bankruptcy.
Unfortunately, no meaningful progress has been made toward an agreement with the state for appropriate and necessary rate relief.
This discouraging lack of progress is perhaps not surprising, given the environment which made New Hampshf.re the only state in the nation with a major utility in bankruptcy.
"Third Quarter Report to Shareowners', Nov.1, 3 988."
(See Attachment B)
However, as a November 14, 1988 newspaper account indicates (see Attachment C), a plan to reorganize subject to federal regulation and obviate state regulatory control, including the state's anti-CWIP law, is going to be vigorously opposed by the State of New Hampshire, a party to the bankruptcy proceeding.
Thus, the possibility of an eventual liquidation remains real.
The second part of Applicants' so-called "Statement as to Status of Record" is the chronology of events in the bankruptcy, which actually is a highly selective chronology of PSNH filings both with the Bankruptcy Court, and with the Appeal Board.
At paragraph 4 on page 5, the Applicants selectively excerpt from a response to an Appeal Board order of April 22, 1988.
In this response, the Applicants assert that they have made all monthly payment,to Seabrook Station due on or after January 28, 1988.
This statement continues to be true on the date hereof.
- However, i
cpplicants in this Statement fail to disclose the fact that, in a pleading styled "Joint Motion of Debter and Certain Other Joint l.
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Owners of the Seabrook Project for Order Permitting Disbursement of Funds Held in Escrow", May 1988, that:
The failure to pay Public Service's share of the prepetition payables has affected relations between the Seabrook Project and its vendors:
approximately 11 vendors have interrupted their relations with the Seabrook Project and have been replaced; some vendors will only supply goods and services on a c.o.d.
basis; and other creditors have made reclamation demands; and an insurer for the Seabrook project has thrcatened cancellation and nonrenewal of certain policies.
(P. 6)
Thus, although it remains true that PSNH hac paid its share of project costs since its bankruptcy, it is in fact truc that the bankruotev filina did disrupt the Seebrook Proiect. and caused the cessation of services on the cart of certain vendors.
Public Service is also pleased to quote opinions of the Bankruptcy Court that it thinks suits its purposes, but omits to mention that the Bankruptcy Court, in denying its motion to spin t
off its New Hampshire Yankee Division to be a separate corporation, found, in regard to PSNH's application, that it was
"[1]ef t with the conviction that it was not presented 'whole story' with regard to the underlying reasons and anticipated effects of the proposed transaction at the August 26, 1988 hearing.
{ Memorandum opinion, p. 18, attached to "Third supplement to Massachusetts Attorney General James M. Shannon's Petition Under 10 CFR 52.758 for a Waiver... ", September 9, 1988).
The Court, as the Commission will be aware, denied the
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requested transfer, which indicates at a minimum that this I
commission should not adopt the Applicants' apparent invitation to assume that the Bankruptc'y Court will approve all debtor requests.
Lastly, in regar? to the overall issue of financial qualification, and its relation to safety, the Applicants have failed to disclose to this Commission the fact that the former chief executive officer of PSNH, Mr. Robert Harrison, even Drior to the bank :uptcy petition, indicated that the company would, t
L because of its dire financial condition, take steps which could 1
threaten the future delivery of reliable service.
- In a statement released on August 5, 1987, (attached hereto i
as Attachment D) Mr. Harrison threatened that PSNH would cease l
1 L
i providing connections to new customers and stated as follows:
(I]f no action is taken on this set of requests i
[which included a request for an emergency rate increase), steady deterioration in the company's ability to function will lead quickly and 4
inevitably to a bankruptcy filing.
Services which customers and the State of New Hampnhire now take for granted may begin to be phased i
down well before that date.
He went ons Unless the present circumstances change, no commitments can be made for requests for new service received after September 1.
Let me repeat that.
The Company can make no i
commitments that it will be able to complete construction which will affect customer l
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r service, unless our present circumstances are corrected by September 1.
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Second, we must drastically reduce our maintenance expenses.
All maintenance 1
projects are being deferred except where deferral will present unacceptable risks to service continuity.
Unless this situation is corrected quickly, the levol of service customers have come to depend upon will deteriorate.
We submit this as a dramatic indication that the premise underlying the requirement for demonstration for financial qualifications is sound.
A utility facing a financially precarious situation will, as Mr. Harrison indicated, threaten to I
weaken service to its present and future customers as a way of addressing its financial situation.
A utility that would threaten its customers in this way may well, as described in the i
Dissenting Opinion in ALAB-422, perhaps, even without consciously intending to do so, erode safety margins ac a nuclear plant.
t i
In short, an applicant must prove that it is financially qualified to carry out the construction of the plant in a manner which is fully consistent with the Commisalon's safety goals.
If this means anything, it i
means that there is a need to avoid a situation in which financial pressures on an applicant become so pervasive as to influence the manner in which the plant t
is constructed.
If the struggle to obtain funds becomes too difficult, even the most v
safety-conscious utility company might succumb and, in its efforts to reduce costs, end up cutting corners in constructing the plant.
Even where l
there is a promise thct funds will ultimately be available in the future, financial conatraints can play a heavy
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influence on day-to-day decisions.
We should not close our eyes to the likelihood that' letting a financially strapped company go ahead with construction will exorably result in decisions to do less testing, to use lower quality materials, to approve borderline workmanship, and the like.
In insidious fashion, each such decision, even though not consciously designed or believed to do so, increases the risk to the public from an eventual accident.
I fear that, if not reversed, the principle announced by the majority will undercut the Commission's long-standing insistence that only the highest quality standards may be employed in the construction of nuclear facilities.
Our experience in reviewing other licensing cases teaches that it has not always been easy for the Commission to get this message across to those who need to hear it.
Repeatedly, comp 1nies which were not in financial distress have had to be prodded to adhere to quality standards.
We can expect the problem to be exacerbated when the utility involved is being forced to save money at every turn.
It is no answer to pretend that any deficiencies will be caught by the Commission's staff of inspectors and then corrected.
No matter how capable end diligent they may be, all work or even to review the documentation of more than a small part of it.
No one expects that they will spot every instance in which safety is compromised by cost-cutting techniques.
In other words, while in may not appear to be so at first clance, a decision on an applicant's financial qualifications can have the most serious safety repercussions.
Because of this, it is not enough for me to assume, with the majority, that the state PUC will see to it that the lead applicant eventually obtains the funds necessary to complete the construction of seabrook.
If we were being asked to pass on the financial qualifications of a utility to build a fossil-fueled plant, we might justifiably go on farther, for deficiencies in construction brought about by financial pressures would only make it an an unreliable source of electricity.
But a less than carefully or adequately built nuclear plant is dangerous.
In the matter of Public service Company of New Hampshire. et al.
(Seabrook Station, Units 1 and 2)
ALAB-422, July 26, 1977, 6 NRC 33.
Joint Intervenors hold that the principal set forth in ALAB-422, though addressed to the question of construction quality applies equally to the question of operational safety and maintenance.
Respectfully submitted, Seacoast Anti-Pollution League
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By their Attorneys, BACKUS, MEYER & SOLOMON I
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By: Robert A. Backusf Esquir4 116 Lowell Street P.O. Box 516 Manchester, NH 03105 (603) 669-7272 1
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- n r-ON BEHALP OPS 8 h5 21 P4 :56 TOWN OF HAMPTON Matthew T. Brock,. Esquir;,,e.-.
Shaines & McEachernt 25 Maplewood Avneue P.O. Box 360 Portsmouth, NH 03801
.e ON BEHALF OP :
NEW ENGLAND COALITION N NUCLEAR POLLUTION Diane Curran, Esquire Harmon, Curran & Tousley Suite 430 Washi gton DC 2 b 9 DATED:
November 18, 1988 I hereby certify that copies of the foregoing Intervenor Objection and Response to Applicant's "Advice to the Commission" of November 14, 1988 have been forwarded by first-class mail, postage prepaid to all parties indicated on the attached service list.
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UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF NEW HAMPSHIRE
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Chapter 11 In re
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Case No.
88-00043
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Public Service Company of
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Date: May 20, 1988
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Time: 9:30 a.m.
Debtor.
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MEMORANDUM OF PUBLIC SERVICE COMPANY IN SUPPORT OF l
MOTION TO EXTEND PLAN EXCLUSIVITY PERIODS i
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desirability of the creation of a holding company, a third party salo, or a segmented liquidation of Public Service's
- assets, as well as issues relating to valuation, the distribution of valt e to junior interests, and feasibility.
A i
rate increase of $70 million could translate into a valuation difference of $400 - $500 million, based on Public Service's currently allowed rate of return on capital.
In the meantime,
'I formulating and negotiating an internal plan that allocates nubstantial value to junior classes before the resolution of one of these issues might not be possible.
Resolution of theJe issues might also have a substantial effect on one of the other plan options described above.
Moreover, a plan that does not provide for both contingencies could resulc in Public Service being unable to fund Seabrook pending full operation and thereby could create feasibility issues.
S.qg 11 U.S.C.
5 1129 (a) (11).
With additional
- time, Public
- Service, its creditors, its' equity holders, the Seabrook joint owners, and others can better evaluate the effect of these contingencies in the conte.<t of a chapter 11 case and may be able to reach agreement on a resolution of or an appropriate plan for these i
contingencies.
i d.
LiouidotiSD.
piecemeal sales of portions of Public Service's assets to i
Sale of different buyers may also provide a basis for a plan.
distribution assets to a utiiity with excess capacity, coupled
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,t with sales of generating facilities to local, regional, or foreign utilities that are short on capacity might generate more value than a sale of all operating assets to a single entity.
Before its chapter 11 filing, obstacles similar to those hindering a corporate restructuring stood in th vay of a liquidation.
Public Service must evaluate this alternative, not only as an alternative to an integrated reorganization, but also to meet plan confirmation requirements.
11 U.S.C.
55 112 3 (a) (5) (D),
1129 (a) (7).
A thorough evaluation of this option requires an extensive analysis of the demand for particular energy sources, governing regulations, and other factors.
2.
The Filing Has created Uncertainty over Liabilities.
Evaluation of assets and restructuring options is not enough for plan formulation.
The amount and ki:.a of liabilities play a central role in determining the appropriate distribution of values under a plan.
Public Service's known debt includes approximately $1.7 billion in public and private securities.
Unknown but substantial other potential liabilities night be asserted.
pending securities litigation as well as potential claims from parties to executory contracts that are rejected during the case or under a plan could be substantial in relation to the total liabilities in the case.
There is the potential for claims fron the Seabrook joint owmore for Seabrook related issues.
Given tho $5 billion cost recm.m -
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'""<"' o^e be** crw In#
.., y 1) i96.93 05:2.39s Pubrsc ta'usce of New Hcmpshte Third Quarter Report To Sharcounct s 32.5:9 31.41 Nos ember 1,19SS i34.031 1+#
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- 1) ear Shareowner:
At a special meeting of the lloard oiDirectors held on September 14, Rahert J.
'. M.m 9f N liarrison soluntarily stepped down from his position as pre ident and chief esecutise oflicer 01:) r:N.^? b 30'cc3, er Public Sers!ce of New ilampshire (PSNill. I was elected to succeed.Tir. Harrhon as p.
gc~o 33.os 1:4.M 5 l'SNis's president and chief esecuthe officer. The lloard also elected William J.
ScharlTenberger as chairman.
l.:co 14.0'l Str. Ilarrbon's premature relinquishment of duties was health related. lie has a e.3 3i,o 3 O'.c H 17f M history of cardiac disorders, including two coronary hy. pass operations. After a recent heart stress test, he was adsised by his physirians to immediately cease at professional aethitie,.
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Durin;; his tenure as President and Chief Executh e Officer, \\f r. liarrison prosided strong g,;'
7,7 y and effet.t, e !cadership to PSNilin an era ofintense pressure end change.
0w 07:s On October 20,I announced a restructuring of top management, completing the management transition which v.as necessary after Str. liar.ison's departure. The manage.
?um, 7 &.2 ment restructurin;: will put PSNilin a better position to achiese its primary goals of W.m gg des elopin;: a bankruptcy reorganization plan that is best for all parties, w hile maintainin.:
tscellent customer sersice. It insches the naming of four senior sice presidents. in a g s3 4yy separate sedion of this report there is more information about PSNil's neu senior esecutho m nis and chairman.
p,:c i n.1:3 These changes estabikh the mana;cment and or;;anizational structure that can and will:
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1.) lead the Company successfully thrc. ugh its bankruptcy reorganization in an n.
EUn _ O!i efliclent and effecth e way, and s
2.) position PSNil as a sound company and strong competitor in the post. bankruptcy H5 Mm e reoyanU3On opUns h Men, PTEMSER 30.
[8' Working with our financial and le;;al adsisors, and repre..ntath es of the t!ntecured g ~o,y Creditors and I:quity Commitucs, we h.n e complettd e tenske analy ses of a number of he n-options. We are no4 further rcfir.ing thee analyses to determine which fir.andal reor;:ani.
..o 2.? !M:s 5 r<
/ation alternatis e best balances the neds of all parties.
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In additia The most desirable reorganization option is to reach a negotiated settle!..ent in New portion of the Ce llampshire 'shere the State would provide PSNil with appropriate and necessary rate increases '.n return for retaining full regt. tory authority os er the Company's electric the federal regul husiness. This alternath e has the potential to be the quickest path out of bankruptcy: if fair gccater than a F!
and thur acceptable to all nnjor parties,it would !mprove the prespects for a consensual Finally, m reorganization plan whici. uould be the quickest way to resch e the bankruptcy.
potentialinvesto Unfortunately, no meaningful progress has been made toward an agreement with the state challenge in the
!!ampshir Anti:
for cppropriate and necessary rate relief. This discoura;;ing lack of progress is perhaps not court could resu surprising, ghan the ensironment which made Neu llampshire the only state in the natiori uith New flampshire a major utility in bankruptcy.
The secon A successful reorganization p;an must balance the interests of customers and insestors.
including PSNil PSNil Gled for Chapter 11 because the scales '<cre tipped against the Insestor. We remain open uould clear the '
to bargaining with representathes of the Str.e toward a plan ut.ich would restore that balance.
traditional NilP Because of our Oduciary responsibility to the ins estors in the Company, we must pursue a course this report.
of action which creates the greatest net present salue toime< tors, if either o Barr.ng unforeseen progress with the State,it is probable that the Gnancial reorgantiation increases. As su plan which we will file with the court on or before the December 27 deadline will propose described unant recon 0;uring PSNH as a holding company and mosing regulation of the generation and trans.
mission functions from the New Ilan pshirr Public Utilities Commission (NIIPEC) to the Federal Unlike th.
Energy Regulatory Commission (FERC).The vast majority of PSN}i's business - representing belles e this is a t almost 90 percent of operating reseaues ~ is currently regulated b) the NilPUC. The remainder workirg relatior cf PSNil's sales, uhleh are to wholesale customers are regulated by the FERC. There are man) to represent the electric companies through00t the United States. including sescral of the Joint Owners of representath es i Seabrook Station, which are primarily regulated by the FERC. In an increasin;;1 con.petith e 3
tion and our mi ensironment, there are si;;niGeant' operating benents ~ such as opportunities for more Desible reorga ntiation. :
pow er supply planning and sales.. to be gained in a holding company conG;;uration as a FERC. regulated company.
Ilow es er, few precedents Additionally, there are financial benefits of FERC regulation for PSNil. We belies e that tion since the Ds PSNil would be entitled to recebe appropriate and necessary rate relief upon a mme to FERC to how much the jurisdiction. In fact, many New llampshire customers, sers ed by othcr companies, are already to "hen this car.
p.rying for Scabrook sia federally regulated rates, in brief, a Of course there is a difference between rates P5 Nil would be legal!3 entitled tolf As the new pres regulated by FERC and rate. 't cculd reasonably charge based onits market. As with any informed about business, prices must be bat ; botn upon what the market can reasonab!) bear anct upon what Interest s.
customers should reasoaab( ;,a3 n eschange for goods and sersices prosided, it h largel)
I through rate increases ~ conJstent with what U.S. Ilankruptcy Court judge James E. Yacos has termed masimum bearable rates - that fair salue can and ui!! be created for those who lniested their hcrt earned dollars in this Company. A mose to FERC regulation cout i be the best way to cchiese thh 5alue.
b 4
In additi; n, we continue te work on a sale, mr 'ger or other combination of all or a bent in New
- ssary rate Portion of the Company 1 assets with one or more parties. Whether done in conjunction with the federal regulation option or separately, this alternative might produce value equal to or
. electric
?ruptcy: if fair greater than a FERC reorganization by itself.
- onsensual Finally, management continues to pursue two other matters which could enhance the ny.
potential ins estor value of ses er71 of these alternatives. The first has to do uith PSNIPs 1 nent with the state challenge in the U.S. Supreme Court regarding the appl!cability to the Company of the N-w flampshire Anti CWIP(Construction Work in Progress) law. A fasorable ruling from the s perhaps not court could result in the availability of appropriate and necessary rate relief under existing
' in the nation witt New flampshire regulation.
The second matter has to do with the elTorts of all the Joint Owner > of Seabrook Station.
s and ins estors.
including PSNil, to complete she NRC licensing process. The aperation of Seabrook Unit 1 We remain open would clear the way for recos ery of PSNil's investment in the unit as in.sersice plant under
- ore that balance.
traditional NHPUC regulation. An apdate on these efforts is included in a separate section of ist pursue a course this report.
if either of these matters is resobed in a timely manner,it could be the basis for rate ci:1 reorgantiation increases. As such,it would most likely be cambined with one or more of the preslously 111 propose described financial reorganization alternatives.
ation and trans, UC) to the Federal Unlike the situation in many other bankruptcy cases, PSNil.usines'!s thrising. I
. ;s representing believe this is a mojor reason why management has been able to d..elop very producthe C. The remainder working re!ationships with the tuo committees that were appointed by the llankruptcy Court
'. There are mant so rept.,ent the interests of unsecured creditors 9nd shareowners. PSNil meets regularly with Owners of representatives of both committees to forward our reorganization plan. This spirit of coopera.
agly competith e tion, and our mutual goals in the formulation and timely in plementation of a plan of financial or more flesibic reorganization, should uork in y our fas or, ation as a lloweser,I do not want to mislead you as Ic the complesity of our situation. There are We bel!cie that few precedents to draw upon: no publicly held electric utility has sought bankruptcy protec.
tion since the Depression. At tnis time, there remains a tremendous amount of uncertainty as a more to FERC to how much the shareowners and creditors of this Company will ultimately recoser, as w cil as
' nies,are already to when this can be accompfhhed.
In brief, our goal is to achles e the highest realizable s alue in the shortcst possihic time.
itled to if As the new president and chief esecuth e oflicer of PSNil, I will do my best to keep you As with any informed about our progress in formulating a reorgani/ation designed to best protect your r and upon uha!
, it is largely interests,
' ames E.Yacos has Since ret.s,
,.l.ose who insested g
be the best way to 7
John C. Duffett President and Chief Firentise Orker h
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n wa Gregg Will Fight Public Service Plan Ma%'CHESTER (AP) - Gover-plants before they operate commer-nor-elect Judd Gregg and other state clauy.Statelaw does not.
officials vow to fight any effort by The prova'.Ereposal would retuire ap-Public Service Company of New rom Public Service's bank-Hampshire to reorganize into a fed-ruptcy judge, who would consider ar-erally regulated utility, a move that g'uments by the utility's creditors could let it start chargtr,g customers and otherinterested partjes, for 'he stalled Seabrook nuclear pow.
The state attorr'ey general's of-er plant, fice estimated that Seebrook related "It's absolutely an inappropriate rate increases under feueral authort-action for PSNH to avoid hew Hamp-tv could total 40 percent and make shire regulatory controls," Gregg hew Hampshire electric rates said Saturday, "and I assure you among the highest in the..ation.
that if they try to do it while I am Larry Smukler, senior assistant governor, I will do everything in my attorney general, said the state will
%e h e to sit down with the r ty attorney general and other officials to determine what legal and legisla-
"%,e believe Public Service would tive recourse we have, and we will b.e.
be required to obtain state regulato-ry approval before they co exploring those options this week'u-out such a reorganization,,uld carg said Gregg, who takes offlee in Jan Sir,ukler said.
Vincent laco Public Servke, lead owner with a state Public L;pino, chairman of the utitles Commission, 36 percent share of the $17 bullon Seabrook project, sought bankrupte) said "state regulatory procedures are adequate and proper and shoul be maintained to the fullest degree.,d protection in January and has until Dec. 27 to submit a reorganization plan.
Public Servlee had been negotiat-The coinpany told shareholders ing with the state over possible rate i
this month that it will probably pro-increases that would auow it to reor-pose reorganizing into a holding gartze stule remaining under state company with separate generat6cn regulation, but utility spokesman and distribution substdlaries.
Nicholas Ashooh sam, "We have not Wholesale power sold from one made a lot of progress on that front."
subsiciary to another uould be regu. So, the company is looking at becom-lated by the Federal Energy Regula, ing federally regulated even though tory Commission, which allows utui-the state "is not too happy about it,"
ties.0 charge customers for power Ashoob t.ald.
q._
2-
- s Concord Mot.itor, Monday. November 1.t.19os i
)
AIfnkeh 7
.a STATEMDrr - R. J. HARRISCt1 AUGUST 5, 1987 THN!K YOU TCR JOINING US TODAY.
ALL CT YCU HAVE MOCULTIDLY HEARD FITERC4CE TO THE VERY TAVCFABLE I
RESULTS OF THE FICCT FELTCiCE FIVID4 CCCUCTED TCR THE STATE OT ?Ei lEMFSHIRE AND ITS FUBLIC tJTILITIES CCid!SSICri BY die TEAM CT TOUCHE ROSS NC NIELSci-WL7, STER. DiIS FIPORT UCERLIhTS DIE IRCt1IC SITUATICti DIE PEOPLE OT hT4 HAMPSHIFI NO PShH AFI IN: Cri DIE CNE FR;D, WIS PUBLIC FIPCRT VALIDATES TFAT SEABROCK FAS BEC1 KTLL PRWGED. Cd THE ODIER HAND, IT ALSO EFJFASIZES die FIALITl DMT SEABROOK HAS BEOi A POLITICAL FOOTPALL. Mc
'rCAUSE IT'S BECT KICKED AROU!O ALL THESE YEARS, TEEP.ENDOUS DAPAG:
- BECT DCt2 TO TFI PEOPLE CT hT4 FR'JSHIFI, THE STATE OF NU4 FN'JSHIht., NO PShH. DIE PEOPLE Or hTA HAMPSHIPI kHD l
PAY HAVE BECi CCt? FUSED ABOUT SEABROCK utIIL NO4 CAN, CtCE NO TOR ALL, ROY URT SEABECCK WAS A JCE kTLL-DCtE NO THAT die FRCBLEM IS A POLITICAL Ct3 - LARGELY TECet ACROSS CUR SCyniEFJi BCTOER. NO CT COURSE THE PR!AGC'a7 NO BCARD OF D7RECTCF3 OF PShH CN1 TEEL HT.ARTCED BY THE GFADE A" REPORT; hTvTRTHILESS, kT ALL HANT TO LIST WIDI THE DAPAGE DRT'S BEC; DCt E.
DIE CBJECTIVE OF CUR CCt'JMU FAS ALWAYS BEC4 TO PIET THE CER3Y PEEDS OT A GECWI!G hTA PR'JSHIRE IN A WAY TFAT IS ETTICIEST, FILIASLE, NO COST ETTECTIVE. D%T'S CUR PROATE TECM die FUELIC. kT BELIEVR THAT KT LAVE ACTED FISPCt;SIBLY MO FRUDCTILY 10 TULTILL TFAT PROATE.
kT WILL PCT ABDICATE CUR PISPONSIBILITIES TO POLITICIANS CR TO PRESSL7I GROUPS. WE BELI VE DGT THE PEOFOSAL kHICH I WILL CUTLINT IN A P.CP.CTI SERVES THE BEST Ih*TEFIST OT ALL PARTIES CCt CEFJED, NO FIETS THAT FISPCNSIBIL7TY.
i TEE TCUCHE RCSS N!D NIELSCi-kVISTER FIPCRT VALIDATES TCR TEE FE0?LE OF NCi FR'J3HIFI THAT PUBLIC SERVICE OT hT4 HAPJSHIFI ACTED FRCPERLY AND FIASCf: ABLY IN DECIDIfG TO DUILD SEASECCK, IN PR; AGING THE CCNSTEUCTlCN CT THAT PROJECT M:D IN CAPSYItG CUT THE FINANCI:03 hTCD TO GET THE JCB EC E.
THIS I?OEPCOCTT STL71 WAS !OT SPCt SCFID BY PShH. NO IT IS !CT THE CNLY STUDY TO CCt:CLUDE TFTT THE CCPJNN'S ROLE IN THE SEABRCCK FROJECT HAS BEEN A 5000 Ct:E. DIE CH2-J LC;GE GRCUP. A WELL RUG CCNSULTDM TIM, ALSO COMPLETED AN AUDIT CT FShH'S ROLE WInt THE SEABRC05 FRCUECT. THIS AUDIT WAS DCNE TCR CUR FARThTRS AT SEABECCK - CCFJANIES kHO CCULD HAVE USED Nu hTGATIVE TI!OI!GS TO I
SUE PSNH. AGAIN, CNTRhTELMI!CLY, THEY TOL'O D%T FShH FAD CCE A GCCD JOB IN PR; AGING UiES'EASRCCK FROJECT. TI!! ALLY, PICFARD, LG G M O GAFSICK, A FISFECTEC CALITOFJi!A-BASED CGINEERING CCNSULTI;G TIF.",
FIACHED SIMILAR TUCIN3e, AS I FIPCRTED TO YOU IN THIS RCG1 l
OtTR A WAR AGO.
RVtFSHIRE PRaGE"rC OF THE SEABRCCK PRCUECTIN SUM FIFORTS SHOULD BE A SURPRISE: PARTIES, HAVE GIVCl OFDJ, M; DER THE FULL SURVEILLANCE OF THE FUBLICSEABRC j
THE PIDIA.
, THE REG /IATORS RO FCR ALL DIE ALLEGATILAS OF INCCPJETC4CE T ONCE NO BEC1 TOSSED ABCUT C%TR die PAST DECADE.
C kHICH HAVE OVEPALL CCMPAN*I PRfAGC"I*C.CCERGIED THE CRESAF-M M PAPES TO TEA *1 CF 700CHE ROSS NC NIELSci-kVFSTER
- E FIVIrd s
BUSIhTSS GRCUPS IN THE CCCT TiY.
FISPECTED IFt C 3iLED3E D!EIR KCRK FAS PIT die HIGFIST T.7SS, MD 70 NIELSEN-WESTER HAS RICEIVED SPECIAL PFAISE R:D FELCC;CE FIVICiS -- FFAISE FROM Ri C!LIKELY SCURCE S FOR ITS CCNSULTING CCPJNFt, BASED IN THE BOSICN AREA A LEADIhJ CERGY
'IEE PERFCF?RCE OF FIFliS kH3 DC FRLtC;CE ALLITS, EAS RECCCLY REV CC!' NTI, kHICH WAS Li!LICED BY THE NDY CCIRC COTFJ:CRS J
THIS CCt:SULTING A TIPI C.CVEFJCR DUFAKIS WAF UIE CCNFERC;CE'S CHAIF?RJ CCNFEFS CE AT nn! NIELSC;-WRSTER IS R;CNG die MOST CCitFETER FIFF
, H;S CCt:CLUDfD SINCE OCTCEER 1986.SEABRDOK IS SAFE, KILL-57ILT...M:D IT'S R; CITORTUATE TAIST CF TEDEFAL IR4, D!C FEFATE FCR A IVLL YEAR.
USE OF A LCCFHOLE BY THE CC.TF2CR CF PASS
, M O THE FROtt OFEFATING, RC hT4 FAPJSHIRE STATE IXd SAYS kT FAVE HE FIRC BCF234ING TO PAY FCR IT -- EVC1 THOUGH kT'VE DC TO KEEP TO EO TO GET IT CPEFATING.
kHAT A WASTE!
EING KT FR.T
{
FE?rCE kHICH IS TOTALLY BEYCND THE I
?T."TR-i DEVASTATING FOR THE FECFLE CF hT4 RAPSSHIRE THE FISULTS AFI l
THE COMPRU'S SEASECOK CCSTS INCFIASE EY $1 MILLICNFCR EACH C 4
ABLE TO GCIFATE CASH TEFCO3M die,FRICE CF CUR FFODUCT WITEOLT EEING OF D:IS. THE CC"JRTI'S LCNG TEFl! CE
, PShH IS FCRCED EECAUSE I!TIEFIST CN TFAT CEST IS CVER 5200 MILLICN A YEAR LICN No die FShH FAYS ITS OPEFATING COSTS, IT FAS $150 MILLICt CR SO L EACH YEAR, AFTER niAT S150 MILLICU PSMH MUST FAY $200 MILLIIN OR SO IN Ih ETT. CUT OF ANOTHER S60 MILLICN TO B'It RC INSTALL LIhTS NO P TO PA!NTAIN P3CR PLA'CS kHICH SEFl.T 21,000 NEd'FiTEF3 W DCN"i FAVE NN FRINCIPAL CF PATURI?G DEST TO F 1734, ASSCUNG YCU TO EC:
hah! ht DCt2 IT7 FAY $340 MILLICn IN CCSTS CUT CF $150 MILv1CN IN Fu kT'VE DCt2 WFAT STATE IWY FICUIFID:H3<
IhiEREST DEBT TO PAFI UP THE DIFFEFECE.
i ECFSCtCD HIGH FIFLECTUG TEAT INVESD'IC IN FRICES l
ALFIADY SCPI CF TEF.". RIGHT HEFI IN hT4 HA"?SHIFI!
TO?US --
EAIL US CLT FCE die C;FOR37 ATE FISULTS CF TH 1
ilf TO i,
CA"IS NC THE i ;
FIGULATORY DEIAYS.
INVESTCRS API FC LOCER WILLING TO BUY OUR BONDS, BECAUSE THEY CRCCT BE ASSUFID THAT DlIS CCPJANY WILL BE ABLE TO PIPAY THE PRINCIPAL R:D THE INTEREST. THE PISSAGE IS THAT AS LCt.O AS THE l
STATUS CUO RC'AINS, kT AFI SIPJLY to LOEER hTLCor'I AT THE BCFRCWING WINDCW. DIESE CREDITORS TTAR THAT WE CNCCI REPAY OUR DEST BECAUSE kT SIP. FLY DCN'T HAVE THE INCCPI TO CCVER TFAT DEBT. FICCIT FRCCT IS PT@Cir IN CUR ATTC*ST TO BCFSCW $150 MILLICN, kHCl THE PHILT kOULD ABSORB Ct:LY $100 ftILLICtl - EVC1 AT VERY HIGH IhTEFIST PATES.
BECAUSE PCLITICIRIS HN.T BEC1 C7dILLING TO CBJECTIVELY RELYZE, ACCUC10DATE, CR CCPJROMISE C'JR THE TUTJFI SUPPLY OF ELECTRICITt IN hT4 FJJ'JSHIRE, THE TIteNCIAL kTLL-BEING CF PShH IS !!! EOUST RO THERITCFI THE CCALIrl CT LIFE I!! hT4 RM'JSHIRE IS THFIATC?ID.
IN ESSC;CE, PCLITICIANS, BECAUSE CT TFIIR ACTICNS CR !!aCTICN, AFI ABCUT TO PAKE LIFE WORSE TCF. THE PECFLE CT hT4 PRiPSd!FI.
tit %LLY, BECAUSE OF THE ULJIAT TO THE COALITt CT LIFE IN Nrd FRTSHIFI RO BECAUSE POLITICIR;S AFI CT4ILLI.'G TO DEAL WIN THE FIAL PRCELD!S THAT CCPJOSE DMT THFIAT, PShH IS TACED WITH A CHOICE BETdECl T40 VERY STAFI ALTEFJnTIVIS TCCAY -- hT ?!UST CHCCSE die FAN THAT EEST CISUFIS THAT THE THFIAT TO !.T4 fat?SHIFI'S CUALIrt OF LIFE IS EASED.
n!E PRa3EP.CT RC SCARD CT FS?Td FAVE ADCFTED A PkO3?R: THAT kT BELIEVE IS TdE MOST FIASO!aSLE ALTEF23TIVE GIVC4 THE CIRCC? STANCES.
IN Ft. TITIN 3 THIS FIR 1 TOGETHER O'ER THE IAST Trd WEEKS, WE CELED CN SCFI CT THE BEST LEGE NO tit %NCIAL HI!OS IN DIE CCCTIRY: PIRRILL LT:CH RO LFIXEL EUFJ.HRi IRSERT AS TI!aNCIE ADVISERS RO THE hT4 YCFF IAN TIFJi CT CMILL CCRICN RO FIItOEL TCR CCNSTITUTIC:AL ADVICE, CCf:DIhTD WInt BOSitti-BASED RCFES RO GFAY TCR SECURITIES CCC;SEL RC SULLOGY, HOLLIS RC SCDCJ FCR EXPERTISE IN hT4 HN'JSHIFI 1R4. DIESE EXTERTS, NO OTHERS, HAVE P'n TOOETFIR A F:R4 THAT THEY C' J It'OUSLY J
COCRS E.
IT FAS SEVEFAL EEY CCf'JC* CTIS:
1.
kT AFI TCCAY ASKING THE F'IELIC UTILITIES CCCTISSICN TCR R; E"IRGC;CY FATE INCFIASE REFAGING $7.93 FER MOtTIH, CR 26C FER DAY, TCR THE Ti?! CAL HOUSEHCLD. DESPITE Uf!S It:CFIASE, Ct?
FRICES WILL STILL BE LCWER TPR' IT THE FADT4AY 2000 P:R: FAD BEC? I?7LC'.CT!ED CM SCHTDUli. NO LCkTR TEC1 THEY WOULD BE IT WE FURSUED ANY OIHER FISPCNSIBLE COURSE OT ACICN D*R:INTD BY PRAGO'.CTT RC CUR Ih0EPDOrTI ADVISCR. BAS 4CALLY, CUR T!LI!;G -- CCPIES CT kHICH WILL EE DISTRIBUTED -- SETS FORTH die CCPJR;Y'S TINN CIAL SITUATICN IN l'JLL DE' AIL.
IT CUT-W !T T INCFIASE FRICES, L w.o no.
.,.4, 4~
n.w....
CCNCLUCES THAT THE RTII-CWIP IR4 AS APPLIET TO FS:Td IN ITS CUPSD*" CIRCU!".STN;CES MOUNTS TO AN UiCCNSITVIICt%L TAKING CT OL-PROFERTt, RO FRCVICES EACECRCUND 0i A FICCIT IRO?%FI CECISICti BY THE U.S. COURT OF APFTALS IN hTSHINGTON. LET PI D'JFASI:E CNCE A"AIN TFAT EVCl WI;H THIS INCFIASE, CUR FATES WILL BE BELCW kHEFI THEY kVULD PA'E BEC1 COER THE Pani 4AY 2000 SCHEDULE RC;CC;CED A YEAR A'C.
IT IS INDEED IRONIC THAT
~
WE HEFI IN hTA FJFJSHIFI AFI COIN 310 PAY TCR A FtRTI TFAT SITS IDLE.
IT'S IDLE tCT EETAUSE kT WRTI IT TO EE, SW EECAUSE IT SERVES THE FCLITICAL ASPIFATICNS CT CC'TF0;CR DUKAKIS TO KEEP IT IDLE. Td!$ FAH IN REASE TCR THE FECFLE CT hT4 FXJSHIFI IS tOTHING LESS T.JR; A TYFICE "DUFMIS TM"..
2.
IURWIR,1EE CCPJN;Y FETITION ASKS TET FUBLIC UTILITIES CCtCi!SSION 20 IPPEDIATELY TCF: WARD 10 THE hTW HNiFSHIRE SUFFriE COURT A CUESTION CT IR.4 CN kHEIHER THE STATE'S NCI-CWIP IAW, A STATUTE DIAT HAS FRCHIBITLD 1EE CCPJNN TRC!i DETRAYING SCPI CT DIE COSTS OF STABRCCh WIIH FEVCUE TRoti CUSTCttERS, IS UNCCt4STITVIIONAL AS AFFLIED TO PShH IN TODAY'S CIRCUP. STANCES. CGCE AGAIN, WE BELIEVE THAT THE FACCC TEDEFE COURT OFINICH CIARITIES THIS SITUATION AND FIATTINAS CUR CASE. IT C'JFASIZES THAT THE FCWER TO FIGJIATE IS ICT THE FOhTR TO DES 30Y.
7 3.
IN ADDITICN, THE CCf!PNN WILL SEEK 10 RESEUCTUFI SCPI CT ITS DEBT IN A FLAN JOIhTLY DEVEI.MED V!nt PIRRILL LYNCH NC DRDtEL BUTC.HNi IR'3ERT. DE y' A1 Ib* CIA' DES A VOLCCARY EXCHANGE CT !;Di SECURITIES TCR CERTAIN C/JTSTANDING DE%T SECURITIES.
IT THETI'S NN DCOBT AS 70 kHAT WIS FRCFOSED EXCHNCE IS, LET 12 i
PAKE IT CLEAR: IT'S N; ATTC'JT TO CBIAIN THE BDTETITS OF 3R*KELTTCY WITECUI ACTUALLY TILING CFAFTER 11 NC PD'EIZItG CUR CUSICPIRS IN THE t
PROCESS. ED'S OER, THOUGH: 7EE ACCEPTN;CE CT CUR FRCPCSAL BY CUR CFIDI70RS PAY BE DEFCCCC UFON FRCt'JT FATE FILIET.
kHAT'S THE ALTETcaTIVE TO CUR FT.Ni? LNTCR1U;ATELY, IT 10 ACTIC::
IS TAXC4 0:1 THIS SET CT FI^UESTS, STEADY EETERICFATIC(; IN TdE CCPJNN'S ABILITY TO FU;CTION WILL LEAD CUICKLY NO INEVITABLY TD A I
FR;KRUPTCY TILItc. SERVICES kHICH CUSTCPIRS NO THE STATE CT t:W FJFSSHIFI 104 TAKE TCR GFRCED PAY EEGIN 10 BE FFASED ECC; WELL BETCPI WAT DATE.
BECAUSE kT RC4 THE FUBLIC LTILITIES CCCtISSICN PUST FRIE TIPI TO CONSIDER CCR FIOUEST, k'E FR.T ALREADY BE321 TO TAFI STEPS TO AVOID RCC4ING CUT OF CASH.
TCE D*R1FLE, kT FR/I CURTAILED CUR CUFJSC CONSTRUCTICN FROJECTS NO Ih7CC TO CCtCIhVE ONLY WITH TdDSE FRJJECTS k?ICH AFI ABSCLUTELY !?ICESSARY TO FRCVIEE SERVICE TO CUSTO"IRS CVER
[
THE hTXT TEW Pr.NIES.
l THEFI WILL EE to FUK!EER WORX CM CONSIWCTICH ??ECESSARY TO FFIFARE TCR NEEDS BEYCtc WAT TI!2. ALL CCNSTRUCT!CN IS BEI!;G DETEFSID kHEFI DETEFSAL WILL NDT FTISCC L' ACCEPTABLE RIS/$ TO SERVICE CCtCIt?JITt.
[
FFISCC CCtCIIFICS WI'.L BE SCHEDULED NO CLfiFLETED, N N AODITICtaL CCt;tITi'RCS AFJRi3ED BY SEPTC'. DER 1 WILL BE SCHEDULED WIDI CCGSTRU^TICN FRCCEEDUC AS CASH IS AVAIIABLE. UNLESS THE FFISC C
[
CIRCG'.STN;CES CFRGE,10 CCMtIFICS CRi SE PADE FOR FICUESTS TCR NDi SERVICE FICEIVED ATTER SEPTD3ER 1.
LET PI REPEAT WAT. THE CCPJRT.*
t CAN PAKE tG CCCTITPRCS THAT IT WILL BE ASLE 10 COPJLETE CCGSTRUCTICN
[
kHICH WILL ATTEC'. CUSTCPIR SERVICE, C LESS CUR FRESCC CIRCL"iSTN;CES
[
I AFI CCFSICTED BY SEPTD3ER 1.
SECCt:D, WE t"JST DFASTICALLY FIDU~E CUR PAIhTDW;"I EXFC;SES. ALL PAIhTCiN;CE FROJECTS AFI EEING DETEFJID EXCEPT kHEFI DETEFJAL WILL i
F?ISCC CGCCEPTABLE RISES TO SEK/ ICE CCtCIhVITf. UNLESS THIS SITUATICN IS CCFIECTED CUICKLY, TdE LEVEL CT SERVICE CUSICPIRS FRJE CCPI 70 DEFCC UPON WILL DETERICFATE.
THIRD, CUR FAYRCLL EXIC;SE IS EEING FIDUCED. IN CROER TO DC SD, i
kT HAVE INITIATED N; EAFIY FITIFC'IC INCCCIVE PRCGFR1 NO WILL LERIE
[
j l 1
r 7
4 UNTILLED MOST OF THE POSITIONS VACMTD AS A FISULT. kT HAVE t
TEFMINATED MNN CONITsACT, TDTCFARY, NC SU"."IR PERSCt0?EL NO hT EVE ALSO DETERRED ALL ADMINISTFATIVE PRCOPAMS NO PROJECTS kHICH ARE PCT f
DIFICTLY NO IMPIDIATELY hTCESSARY TO NFJi!SH OR SUFFCRT CUSTCPIR SERVICE.
l
)
WE MUST, DiCUGH, AS MUST DIE STATE NO THE PEOPLE OF THE STATE,
)
TACE die FIALIrl WAT TILI!G PR.73UTTCY PAY BE hTCESSARY. IT THE I
FIGUIATORY NO JUDICIAL PROCESS DCES JCT FISFCtc CUICXLY C CUGH TO CUR EECUEST, THE CCFJNTl WILL HA'.T 10 CHC1CE B'Jr 70 SEEX PROTECTICti TECM ITS CPIDITCRS. TCR THAT FIASON, kT HN.T BE3L*1 THE PROCESS CT l
DETEFMINI!C kHAT TdE BEST STFATE3Y WCULD EE TCR THE CO!'JNTl NO ITS f
j CUSICTIAS, SHOULD SUCH A TILI!G BE hTCESSAEY. IT'S t#3 SECFIT TM.
On!EES HAVE LrogED AT THE SIWATICN AS hT:.L. THE STATE CT !.t4 l
HN'JSHIEE, FOR EXA*JLE, CO! tISSIChTD A BIFCRT SEVEFAL YTARS AGO BY A 1
LEADIN3 IAW TIFM IN PR CHESTER. THIS TIPCFT WAFliED WAT, NO I QUOTE, "ER?KRUPTCY WILL PROBABLY PCT EE A FNiACEA". THAT IS A CCt:CLUSION kHICH MCST SUCH SWDIES MVE FIACHED. TCE EXA."FLE, SEVEFAL YTARS A!,0, CGEETS AT TdE CCN3FISSIOfAL FISEAECH E&nCE UNDERTCOK A STUDY CT f'
UTILITt BN!KEUFTCY NO CONCLUOED D!AT THE CCSTS TO THE CCNSL"'IR FC!E,
[
N!D EOSE SRAFJLY, IN EVER'l HYFCIEE!! CAL CASE THEY CCt STRUCTED.
IT i
.iHOULD BE CLEM WHY TdAT'S DIE CASE. AS THE SWDY Ect.T TCF. THE STATE i
i O.
MrJ E!G5HIFI POINTED C'JT, 'E0 FUFTCSE CT A BANKRUFTCY FECCEE0!N3 I
l HAJ EECi TO FIHMILITATE TdE DESTCE IN A WAY hMICH PROVIDES TdE l
l ML%it FITUF;i TO ITS CPIDITCES". IN Cfni!K WCFLS, IN BRE:UFICY TEE l
2 l
ItTEFIST* CT THE CUSTOPIES AFI A "DISTN!! SECOND". CENI VILES CT THE l
TFR KLIN F.ERCE IAN CENTER FICD LY VEEITIED THIS kHCJ HE FIFORTEDLY SAID, "WE CRi'T LCCK AT THIS AS A ENT/3'.*?!0Y PECBLDt. THIS IS A FE0 ELD 1 FM THE STATE CT hti FRL SHIFI."
j
)
TVFIEER, THE SWDY OCNE TCR THE STATE ALSO tCTES THAT TdE EXC'RrFTCY CCCE FFOVIDES TCR die SALE CT FEOFERTl BY DIE PR T3UPT CCPJVN. CNDICLY SPEAXIN3, NTIO?E FICCC *IN3 THAT DIE CC:'JNN FAS
[
i AFJ" 150 FIGN ATiS CT PE000CTICt: CAPACITi CUISIDE THE STATE Cf t,Ti HA"JSHIFI, CAPACITI TEAT FE00CCES S0"I CT TdE CCt!PRTl'S CHTAFEST P3sTR, WOULD HAVI TO CCNCLUCE TET C'.T ALTEF;ATIVE WCULD EE TO SELL TdIS LCW-CCST CAFACITI NO FIFAY AS' ISCH CT THE DEST AS FCSSIBLE. CT C0CESE, WAT WILD EXACEEEATE TdI !XISTIN3 P"WER CETICIT IN hti K70JSHIRE. hI ALFIADY ASI SHOE! CT CAPACITI BY 150 FICRGTTS.
IT THE EN FIUFT CO."JN Y SOLD CTT THAT 150 PIGAWJr:S CT CHTAP CAFA*.IT(, kHICH M?GHT kTLL PAFFC;, FShH CUS*OPIFS WOULD EE 300 FICRGTTS SHCET OF C.'JACITi.
WT. W^ULD EC SCFR3LIN3 TO FE0VICE CAPACITt TCE CUF CVSTC"IES AT A T!"E bEO; LT C C:RO IS FJJIDLY GE34IN3 NO DTJ'RO!N3 MOFI ELE G ICITt. BUT n!OSE h?D ADVOCATE EN F3UFTCY GLCSS CVER TE:S TGE CT POTCTIIAL FISULT -- THEY TOE 3ET TFAT TdE FUFSCSE CT FA F5CPXY IS !CT TO HELP die CUSTOPIR.
IT'S TO SAT:Srl THE PECFLE kHO HAVE LCTT Td I fi5:Et.
~
TINALLY, EECAUSE kT AFI ALFI.OY SO SH;ET CT CAPACITY IN LTi C ULAhTA I N: NO CUNCIN31BCAY TFAT THE CC"JNTI ALCt:3 WITH O!EEE h*D C 3'MO U!ILITIES FAS EE30: TO CO.iACT A !?J"SER CT ITS EUSIbTSS CUS~OMERS TO CFTEE INCE.7!VES TC? TdD! TC LIP.IT USE OF die!E ELECTFICITt AT CEE!AIN FTAT HOUES C.7:L tie DO OT SEPTTJ2EE.
'cT AFI ECING EVERYn!IN3 hT CN, W: THIN **iI ECC.OS CT THE IAh* NO FIASO::, TO FR'CLE THIS FCWT.R DEFICIT S!KAT:CN NO PIET CUSTC"IE LTEOS.
h3 G'EE, IT SELT-SERV!N3 POLIT CIN S SASO!ASE Td!S ETTOE! BY
-5
.1
BYING TO 2CF72 DIE SIMAT!CtJ, CR !T Cr,TAIN SPECIAL 2hTEFIST GROUPS BELIEVE '"o1 DiEY CAN SCPIMG4 CBLITEFATE SEABRCCK BY C(ACERSATI?G THE COPERiY'S TItiANCIAL PRCBLDiS, AS DIEY LELIBEFATELY HAVE IN THE FAST, DIEY AFI CPEFATING ON ERRChTCUS NC UNJUST PREMISES. CUR FICUEST IS TO HAVE A TAIR SOLUTICN OT PShH'S PRCBLCtS S0 DIAT THE CCPJRTI CR4 CONTINUE 'IO SERVE hT4 HAPJSHIFI. THE TI!C HAS CCPI TCR SUBSTNRIVE ACTION TV FIPIACE HIGHLY POLITICIZED RHETCRIC.
THE TIPI HAS CCPI TCR DIE CITI C45 OT die STATE TO DECIDE. Do YCU WN.T TO UUST DIE PEOPLE OF FUBLIC SERVICE Or hTA PAPSSHIFI, YCUR NEIGH 3 ORS N!D TRICOS, TFI FECFLE YCU Roi, DIE PEOPLE kHO HAVE BEC:
BRINGI!G YCU CEPCOABLE, FILIABLE SERVICE TCR THE LAST 60 YEARS? CR DO YCU WAhT TO TOLLO4 CEATAIN PCLITICIN!S kHO FAVE UfEIR CWN AGCCA N.D HIGHER POLITICAL ASPIFATICf;S, POLITICIN;S kHO BRCUGiff US ItTIO THIS SITUATICti MC kHO Of TER 10 FIAL KAY TO GET CUT. kT THIN'K kT MU4 THE R SWER: OFINION SrRVEYS TELL US 7 FAT 80% CT CUR CUSTO!'.ERS VIEW PShH TAVCFABLY. RC TVI PERCCi! AGE VIC4ING ?ShH VERY TAVCRABLY HAS JU!t?ED BY CVER 50% IN TH'. LAST 18 P.CftIHS...A CLEAR PISFCt:SE TO DIE VARIErl CT t EW FRCGFRiS WE 7 AVE BECi Ih'.T.0DUCING.
FFR;ELY, I rQULD NOT BE SJJRISED IT DiESE PECFLE kHO FATE FSSH SO HIGHLY HAVE HAD DCO3H CT TdCSE PCLITICIR;S:
PASSACHUSETTS PCLITICIA :S IN WASHINGTON kHO R!DICULE NO INSULT THE CUALIri CT SEASRCCK k FIERS R;D THCi SECFITLY TWIST CUR AF.".5 TO FLT DiEIR FOLITICAL CRCt:IES ON U?E SEABRDCK FAYRCLL. FIFI'S Ch'E CG."JLE -- A Lmu TRCl! CCNGFISSFR ED YA?3EY.
FFISIDCCIAL CNCI:hTES Mio HICE EEHIND WHAT DIEIR FARVAF.0 GFADUATE STJCC.T AA SEFS ADf!IT 15... I CUOTE... "R; ILLEGITIPATE USE CT THE FIR 4 IN THE TEDEFAL FRCCESS kH'CH FLTS die OTHERWISE kTLL-IhiC.7ICt.TD VIILITY AT die PIRCY CT OFFORTU ISTIC STAH ?JC LOCAL CCVE:2".T."
PCLITICIN;S IN WASH!! G'O' kHO CRITICIZE SEABRCCK COSTS --
kHILE 3IVING LIP SERVICE TO THE TECEPAL DETICIT, WHICH CVER die IAST 3 YEARS WOULD FR*T BUILT 125 SEABRCCES.
FOLITICIN S kHO FIFCETIOLY CCPT Roi THE DITTEACCE BE!kTC; A E!LCEATT R D A FILCliETER. BW TEEL TFIE TO PAKE SO CALLED LEAF 2.TD CCf 7.CCS ABOW !?JCLTAR TE"H'OLCGY.
PCLITICIN:S kHO FASS IANS Ki!CH INCREASE CL7. BCFS.3fING CCSTS, THCl CCPJLAIN ABOUT DIE FFICE KT FAY TOR LCA';S.
POLITICIN;S kHO ARE TO USED TO TIp JCI?G THE TECEF.'1 CETICIT BY R'.NING THE FRI!UltN FFI3SES TVAT DIEY ASSU"I DiAT WE CR; ECFIO4 TCFIVER WIDi3.T! die LIED TO PIPAY.
PCLITICIN S kHO CRITICI E Di! FACE CT SEABRCCK CCNSUU -
TICN, EVC; TFOZH IT WAS TdI DiIFO-MOST CUICKLY CC.'tFLETED CT 27 CL7EIC !?JCLEAR FIRCS.
IN SHCRT, kT AFI TED L7.
TED L7 AT FAVING PIT CCR CCC'!!I'I20, YET PEING TCRCED TO THE BRIT X CT BA.'FJ'.7!CY.
TED UP AT FAVIN3 TO PIET THE C;ERGY hTEDS CT Cf E CT THE TA5!ES!-OF3 FIN 3 STATES IN THE CCCCRY
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70t77 DIE PROPT.R RESOURCES. TED UP AT DEIAY' D MT ARE ONLY c
POLITICAL PLOYS. TED UP AT NORKING HARD TOR.' J '. TARS TO PROVIDE A 1 EEDED SERVICE, ONLY M BE FORCED TC WAIT. A D YES, TED UP AT HAVIt.V DONE A PRUDCT JOB...dVT PCT BEING ALLOED 10 CHARGE TOR IT.
ALL OF THAT, RfD UfE PEOPLE kHO I BELIEVE HAVE BEC1 SERVED SO RESPCt:SIBLY BY PSt.H ARE 104 TVRCED M PAY A "TAX" ~ die DUKAXIS TAX - PLUS TACE THE PROSPECT OT DETERIOFATING SERVICE. 104 IS DIE tiOP.Cir OF TRtJnl.
RESPONSIBLE LEADERS CRI TAKE FISPCGSIBLE ACTICti, RO ASSURE 'lHAT WE PROCEED - R C SUCCEED.
l I M1 CCt:TIDC.T DIAT THE CUSTOME."nS RC PShH WILL SUCCEED, BECAUSE kT VAL'JE n!E CUALITY Of LITE DEPCCABLE ELECTFTC POER HELFS PROVIDE TO !.TW HRIPSHIRE; BECAUSE hT NO4 MnT'S RIGHT, RO hT }MVE 1 ~CITICtMLLY TRIED E CHOCSE DRT PATH; RO BECAUSE hT MU4 "LIVE TREE OR DIE" DOESN'T FIAN "SCt1Eni1NG TOR NOTHING"... BtTT IT ECES PIR1 kT WILL PAKE OUR CHOICES k".DICUT ASSISTANCE TRC.'i THE l' ASS / Crr)SETTS l
STATE COUSE.
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ou Sheld:
J. Wolfa, Chairman Georg; Dern, E quir2 Thoma: G. Digrn, E:quira Ucs, NRC Assistant Attorney General Jeffrey P. Trout, Esquire y
Wa_hington, DC 20555 One Ashburton Place Ropes & Gray 19th Floor 225 Frenklin Street Boston, MA 02108 Boston, MA 02110 Dr. Jerry Katbour Richard E. Sullivan, Mayor Andrea Perster, Esquire U.S. NRu City Hall Diane Curran, Esquire W:shington, DC 20555 Newburyport, MA 01950 Harmon, curran & Tousley 2001 "S" Street N.W.
Suite 430 Washington, DC 20009 Dr. E=meth A. Luebke Alfred V. Sargent, Chairr.an Gregory A. Berry, Esquire 4515 Willard Ave.
Board of Selectmen Office of General Counsel Chevy Chase, MD 20815 Town of Salisbury U.S. NRC Massachusetts 01950 Washington, DC 20555 Mr. Angie Machiros, Atomic Safety & Licensing Senator Cordon J. Humphrey Board Panel Chairman L.. S. Senate U
- S * " RC Tom of Newbury Washingten, DC 20510
.0555 Tom Hall Washington, DC (Attn. Tom Burack) 25 High Reid Newbury, MA 01951 Geof f rey M. fluntington, Er.q.
l Atomic Safety & Licensing Judith H. Mizner, Esquire Office of the 1.ttorney General Appeal Board Panel CmbM al S
U.S. NRC State House Annex l
SS Broad Street Unhington, DC 20555 Concord, NU 03301 Boston, MA 02110 Decketing and Servic Richard A. Hampe, Esquire Re Roberta C. Pevear
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Drinkwater Road Usshington, DC 20555 35 Pleasant Street Hampton Falls. Nu 03844 Concord, Mt 03301 Jane Doughty Phillip Ahrent, Esquire Matthew T. Brock, Esquire SATL Assistant Attorney General Shaines & McEachern 5 Market Street State House P.O. Box 360 Portsmouth, NH 03301 Station #6 Maplewocd Avenue Augusta, ME 04333 Portsmouth, NH 03801
ec Snndra Cavutis Kanneth M. Carr, Co=sissionar RFD 1 Box 1154 U. S. NRC Exat Kensington, NH 03827 Washington, DC 20555 Charles P. Craham, Esquire Thomas M. Roberts, McKcy, !!urphy and Grahem Commissioner 100 itain Street U.S. NRC Am:sbury, MA 01913 Washington, DC 20555 James R. Curtisa, Thomas S. Moore commissioner U.S. NRC U.S. NRC Uashington, DC 20555 Washington, DC 20555 Alan S. Rosenthal, Chairman U.S. SRC Washington, DC 20555 Howard A. Wi)ber U.S. NRC Wachington, DC 20555 Lando W. Zech, Chairman U.S. NRC Wcshingten, DC 20555 Kenneth C. Rogers, C otr.i s s i one r U.S. NRC Wachington, DC 20555
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