ML20212F465

Identifies Potential Equity Investors Wishing to Participate Directly or Through Subsidiary in Sale & Leaseback Transactions,Per Util 870123 Application for Amend to License NPF-58.Annual Repts & Supporting Documentation Encl

ML20212F465
Person / Time
Site:	Perry
Issue date:	03/03/1987
From:	Doris Lewis CLEVELAND ELECTRIC ILLUMINATING CO., OHIO EDISON CO., SHAW, PITTMAN, POTTS & TROWBRIDGE
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
Shared Package
ML20212F471	List: ML20212F465 ML20212F541 ML20212F569 ML20212F602 ML20212F637 ML20212F660 ML20212F681 ML20212F707 ML20212F741
References
NUDOCS 8703050093
Download: ML20212F465 (3)

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• SHAW, PITTMAN, PoTTs & TROWBRIDGE A .Am, Nam.Hl. INCLUDING .RO,E...ONAL COR. ORA.K)N.

2300 N STREET, N. W.

WASH.NGTON. D. C. 20037

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L', = ." .": O ' N 2 "'tt"s' J'!.% " '"- .ati ER'. DIRECT D,.L NUM.Em

$7d3'f35 (202) 663-8474 U.S. Nuclear Regulatory Commission ATTENTION: Document Control Desk 7920 Norfolk Avenue Bethesda, Maryland 20814 In the Matter of The Cleveland Electric Illuminating Company, et al.

(Perry Nuclear Power Plant, Unit 1)

Docket No. 50-440 Reft Application for License Amendment and Approval In Connection with Sale and Leaseback Transactions by Ohio Edison Company (Jan. 23, 1987).

Dear Sir On January 23, 1987, the Cleveland Electric Illuminating Company (CEI) filed, on behalf of Ohio Edison Company (OE), an Application for License Amendment and Approval in Connection'with Sale and Leaseback Transactions by OE. The Application indicated that the equity investors who would be involved in the transac-tions would be subsequently identified and financial statements provided. To date, the following companies have been identified as potential equity investors, who may participate either direct-ly or through a subsidiary:

Investor l Potential Investment Citicorp up to $150 Million Wells Fargo & Company up to $150 Million 7 9

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p Q30$U$$E5N I

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,o i SHAw, PITTMAN, PoTTs & TROWBRIDGE A PARTNER $MtP DNCLUO'NO PROFESS 60NAL CORPonATIONS .

Letter to-U.S. Nuclear Regulatory Commission

March 3, 1987-Page 2 Security Pacific _

Corp. up to $200 Million Sovran Financial Corp. up to $100 Million

' Society Corp. up to $100 Million Public Service Electric & Gas Co. up to $200 Million Drexel Burnham Lambert up to $150 Million Chase Manhattan Corp. up to $200 Million Financial statements for each are attached. None of the poten-tial equity investors is a foreign corporation.

Among the potential equity investors above is one electric utility. The Application noted the possibility of participation by utility affiliates and stated that in such event OE would sub-mit a memorandum addressing antitrust matters. This memoranda is attached and demonstrates that there will be no significant anti-trust change warranting further review.

Finally, attached for your information are copies of the proposed sale and leaseback transaction documents.

As noted in the Application, the sale and leaseback transac-tions must.under IRS regulation be completed by March 19, 1987, for investment tax credit purposes. The NRC published a Federal Register Notice relating to OE's transactions on February 11, 1983 (52 Fed. Reg. 4,432), which would permit approval of the Ap-plication on March 13, 1987. Because of the importance of these transactions and the benefit to OE's ratepayers, CEI and OE respectfully request that the license amendment authorizing the transactions be issued on that date.

Sincerely, David R. Lewis Counsel for Applicants Enclosures

3 .

~ SHAw, PITTMAN, PoTTs & TROWBRIDGE A PARTNERSHIP INCLUDING PROFESSIONAL CORPORATIONS Letter to U.S. Nuclear Regulatory Commission March 3, 1987 Page 3 Service List U.S. Nuclear Regulatory Commission Region III Att'n: Licensing 799 Roosevelt Road Glen Ellyn, Illinois 60137 Mr. Richard Knop Division of Reactor Projects U.S. Nuclear Regulatory Comission, Region III 799 Roosevelt Road Glen Ellyn, Illinois 60137 Mr. Walter R. Butler Director, BWR Project Directorate No. 4 Division of BWR Licensing U.S. Nuclear Regulatory Commission 7920 Norfolk Avenue, Room P-924C Bethesda, Maryland 20814 George E. Johnson, Esq.

Office of the General Counsel U.S. Nuclear Regulatory Commission Maryland National Bank Building 7735 Old Georgetown Road Bethesda, Maryland 20814