ML20210U752

Forwards from Massachusetts State Senator T Murray Opossing Merger Between Bec Energy & Commonwealth Energy Systems

ML20210U752
Person / Time
Site:	Pilgrim
Issue date:	08/18/1999
From:	Clifford J NRC (Affiliation Not Assigned)
To:	Hoecker J FEDERAL ENERGY REGULATORY COMMISSION
References
NUDOCS 9908200200
Download: ML20210U752 (2)

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- Mr. James J. Hoecker, Chairman >

August 18; 1999 Federal Energy Regulatory Commission 8881st Avenue, NE L

U CT COMM T FROM THERESA MURRAY REGARDING THE MERGER OF BEC ENERGY AND COMMONWEALTH ENERGY SYSTEMS l 1 i

Dear Chairman Hoecker:

l We have enclosed a June 25,1999, letter from Massachusetts State Senator Theresa Murray. Senator Murray opposes _ th'e merger between BEC Energy arid Commonwealth 5

Energy Systems. Senator Murray s concerns are not in the purview of the Nuclear Regulatory l

l. . Commission, We are forwarding her letter to you because some of her concerns may be more appropriately addressed by your agency.

l Sincerely, L ORIGINAL SIGNED BY:

James W. Clifford, Chief, Section 2 l Project Directorate I i.

Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket No. 50-293

Enclosure:

As stated

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UNITED STATES NUCLEAR REGULATORY COMMISSION J WASHINGTON, D.C. 2055W1

%, ...../ August 18, 1999 Mr. James J. Hoecker, Chairman Federal Energy Regulatory Commission 888IST Avenue, NE Washington, DC 20024

SUBJECT:

COMMENTS FROM THERESA MURRAY REGARDING THE MERGER OF BEC ENERGY AND COMMONWEALTH ENERGY SYSTEMS

Dear Chairman Hoecker:

We have enclosed a June 25,1999, letter from Massachusetts State Senator Theresa Murray. Senator Murray opposes the merger between BEC Energy and Commonwealth Energy Systems. Senator Murray's concerns are not in the purview of the Nuclear Regulatory Commission. We are forwarding her letter to you because some of her concerns may be more appropriately addressed by your agency.

Sincerely, e

int /d .

J mes W. Cliffor , Chief, Section 2 Project Directorate i Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket No. 50-293

Enclosure:

As stated

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MASSACHUSETTS SENATE l'A*E C JE 23 c .5- .. :ew SENATOR THERESE MURRAY C LuwTTEES PLYMOUTH AND DARNST ABLE HUMAN SERVICES AND ELDt Ft 3 DiSTRtCT AF rA.R b 'CH AiRI Roou 51 t -C TR AN5%RT At tN s WCE Cm A.;

TEL 1617s722 1330 Jung]j,]999 m sANs ucANs fax t617) 7221072 STEE R'NG *** D PCC '

HE ALTH CARE FEDERAu FtN ANCLAw A s s 5 ' a ', '

Mr. Samuel J. Co!Iins, Director Office of Nuclear Reactor Regulation

, United States Nuclear Regulatory Commission Washington, D.C. 20555-0001

Dear Mr. Collins:

I oppose the merger of BEC Energy and Commonwealth Energy System in the Commonwealth of Massachusetts. As you are aware BEC Energy has proposed to purchase the Commonwealth Energy System and integrate the existing corporate and operations support functions. BEC serves 633.000 customers in Boston and 39 other communities, and through an unregulated joint venture with RCN Communications has begun offering cable, Internet, and telephone services locally. Boston Edison, a, subsidiary of B,EC Energy, owns the Pilerim nuclearyowerplant in PJymout.h,.,Th,efl ant

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must be' sol'd before the BEC EriiFgy/ Commonwealth Energy merger can proceed. It is

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my unddrstaEding that Elfison's in'tTieprocess or seTTn

'ofNe' w Orleans,Touisiana. ~Com Energy

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fias373,00'0'gtliegant electric customers in areas tdIn~tergy Tncludin'g Cam 66cfge,' Cape Cod, New Bedford and Plymouth, and 239,000 ComGas customers in 51 eastern Massachusetts communities. It is my responsibility to protect these consumers.

While the companies claim that consumers will benefit from a proposed consolidation I and a four-year freeze in their base rates I remain skeptical. The companies propose that the customers of the Commonwealth system be required to pay $958 million in costs to effectuate the merger, including an acquisition premium of $502 million to be collected over forty years. Furthermore the companies do not give any assurances that the customers will receive the benefit oflower electrical rates or improved quality of service.

In addition, the companies do not provide a guarantee of savings to consumers to offset merger charges. If this merger takes place ratepayers of this newly formed corporation will pay the highest electrical rates in the nation.

Moreover, this proposed merger does not adequately address the ongoing question of reliability. Many consumers in southeastern Massachusetts and Cape Cod have pumps to provide water service for their residences. These pumps are operated by electricity.

Consequently, in the event of an outage resulting from a storm or a hurricane these

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4 o l Page 2 Letter of State Senator Therese Murray consumers are not only left without electricity, but they are also left without water. Past outages have left some consumers without electricity for as long as seven days. Since the water supply depends upon electricity the reliability of senice becomes a public health issue.

For these reasons I must oppose the proposed merger of BEC Energy and Commonwealth Edergy System and advocate for the consumers of the commonwealth.

Thank )$u for yo(ir time and consideration.

Sine [ rely,

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/ Therese Murray f State Spator L Plymouth and Barn table TM/cmb l