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Annual Financial Rept 1975.Util Technical Qualifications Encl
	ML19296C683
Person / Time
Site:	Crystal River
Issue date:	12/31/1975
From:	; FLORIDA POWER CORP.
To:	;
Shared Package
ML19296C679	List: ML19296C678; ML19296C680; ML19296C681; ML19296C683;
References
	NUDOCS 8002270740
	Download: ML19296C683 (49)
	v • d • e

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O O Florida Power Corporation 320134th Street South Telephone: 813-800-5151 s Mailing address: P. O. Box 14042 St. Petersburg, Florida 33733

O Contents 2 President's Report to Shareholders 12 Directors and Officers 4 Financial Crisis Eases 13 Financial Statements G Rate Increases Granted 22 Summary of Operations 1971-1973 6 Fuel Outlook Changing 23 Discussion of the Summary 7 System Operating Developments of Operations a New Patterns of Energy Usage 23 Common Stock Price 9 10 The People \Vho Serve 11 An Environmental Balance and Dividends Per Share 24 Business and System NIap Highlights of 1975 1975 1974 Revenues Increased 25% $504,496,000 S404.993.000 Fuel \Vas Up 17% $235,138,000 S200.270.000 Purchased Power \Vas Down 23% $24,202,000 S31.250.000 Interest Charges \ Vere Down . S52,452,000 S53.703.000 Earnings Per Share Recovered . S4.02 S2.42 Dividends On Common Stock Increased $1.9875 St.95 Construction Was Down Sharply $144,444,000 S228,944.000 Sales Of Energy increased 4.7% 13.9 Billion KWII 13.3 Billion KWH Average Customers Were Up Only 2.7% G21,780 605.332 Average Residential Usage Decreased For The Second Year In A Row 9,701 KWII 9.758 KWH 9 Peak Demand Increased 10% Employees Decreased . .

                                  .          3,281,000 KW 3,372 2.989.000 KW 3.478 t..     . ...
                                                                                   ~0007 273

2 O To Our Shoreholders: It is my purpose in this letter to give was accomplished at the retaillevel by an you an overview of the events and trends of the Order issued by the Florida Public Service year and to discuss some of the implications. Commission on July 22 confirming previous This can best be done by treating some of the interim increases and granting a permanent key issues separately. increase. The effect of the Order was an The bottom line results for the year show an increase of $52.4 million on an annual basis. increase in earnings per share of 66% from In addition, the Federal Power Commission

    $2.42 in 1974 to $4.02 in 1975. hfajor factors in                granted wholesale rate relief effective accomplishing this result were rate relief,                      January 1.1976, totaling $5.4 million.

relative fuel price stability, improved productivity, and a sharp reduction in We are at this time engaged in an experiment, construction expenditures. conducted under the auspices of the Florida Public Service Commission,in which a As all followers of electric utilities know, the number of our customers are being billed on industry is in a most uncertain position a .. peak pricing" basis. The results of this regarding sales projections. Our experience test will determine whether or not a sufficient in 1975 showed an increase of 4.7% in change in load patterns can be developed to kilowatt-hour sales. This compares to a justify eeduced investment and reduced reduction of 1.9% in 1974. We have been electrical rates. essentially " flat" in kilowatt-hour growth over the past two years. The number of regular employees of the Substantial efforts were expended in 1975 Company decreased during 1975 from 3.478 to toward securing permanent rate relief. This 3.372, a reduction of 3%. Employees responded s

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3 O admirably to the challenge of the past year. The Company abandoned plans to construct Throughout this report you will see a number two large nuclear units for operation in the of our employees at work. I hope that you mid 1980's. This was the result of the grave will take time to review them. Our employees uncertainties afflicting the nuclear energy are your outstanding asset. situation. That these uncertainties are largely due to lack of a national energy policy is a During the year, we resumed a full level of mark against the United States. Nonetheless, construction activity at the Crystal River we cannot jeopardize the electric supply of 32 nuclear unit. Our plans are to bring this unit Florida counties and the investments entrusted into service during the summer of 1970. In to us by proceeding further until some of the addition, we placed in service two of six questions in this area have been cleared. mid-range combustion turbines at the DeBary site between Deland and Orlando. In 1975, our it is our conviction that coal will be the future construction expenditures were $144.4 million. fuel for the Company through the 1980's and well into the remainder of this century. Our financing program during the year was Accordingly, we have mounted a major effort conducted in three major areas. The first of to secure and control a suitable, economical these, accomplished July 31, was the sale of supply of fuel for our needs in the future. It is 10% of the Crystal River nuclear unit for our expectation that future base load generation S38.5 million. We were joined in this venture will be coal-fired for some time. We keep 9 by eleven other utility systems who purchased this situation under continuing review. a total of 10% of the plant and its output. There are serious problems lying ahead of the Additionally, we sold 1.3 million shares of United States in the energy field. Nothing common stock on September 18 at a price of short of a wartime-type of effort will achieve a S22 per share. This permitted an increase in solution restoring some degree of stability i \ ' the equity investment in the Company and and confidence in the energy supply picture. helped , improve our capital structure. We are increasingly vulnerable to international blackmail and hava stood patientiv as a

Finally. we sold $24.1 million of Electric nation while being victimized by the OPEC Consumer Capitel Notes, largely to our powers. This has resulted in untold hardship customers, during the period September for American consumers. The United States through November. This sale was made at an has the ability and resources to solve its energy attractive interest rate. problems if it has the will to do so. In our The result of these efforts enabled us to bicentennial year this issue poses a serious reduce our short-;erm debt by $29.5 million question as to whether or not we as a nation during the course of the year and resulted in a are intelligent enough to govern ourselves.

greatly improved financial condition. This has The events of the next few years will provide been noted by the rating agencies. In December. the answer. Standard & Poor's improved our bond rating from A minus to A and preferred stock rating For the Board of Directors, from BBB to A. Because of improving conditions, we were able l to increase the total dividends paid to our I I stockholders for the 23rd consecutive year. MM-Pren .ent. G This dividendincrease was of 52%c per share rate of $2.10 per share. effective with or an annual the December February 13,1976

0007 275

4 FINANCIAL CRISIS EASES Revenues for 1975 amounted to $504.5 million, n increase f $99.5 mi!!!on, or almost 25% Higher revenues from rate increases granted to the Company played a significant role in the

                                                                           "*r 1974. Higher rates granted on an mterim sis m Mmary W5, and Company's earnings recovery during 1975.                        increase in August 1975,                     con$38.0
                                                                                                                            %permannt rak The slowdown in fuel cost increases in 1975,                                                            triouted and our ability to recover the fuel costs, were                 milhon to the increase. Revenues also incre sed in 1975 as the higher cost of fuel also important factors. Earnings per share in 1975 were $4.02 compared to $2.42 in 1974.                          s recod hu@ h fud a@ustm charges, and energy sales increased 4.7%g EARNINGS AND DIVIDENDS PER SHARE                                            Operating expenses for the year totaled
                                                                       $416.1 million-up S66.8 million, or 19%

E twas Qorocacs fr m the previous year. The combmation of ss oc higher fuel costs and generating requirements increased the Company's fuel expense by $34.9 4 00 - million, or 17% over 1974. Our purchased power costs decreased $7 million, or 23% during 1975. 3 oo The reduction was made possible primarily by the addition of our 525.000 kilowatt Anclate 2 gg Unit No.1, which came on-line in October

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connections with adjacent utilities. During 1975, the Company deferred many of its 0 maintenance and construction activities. As a 71 72 73 74 75 result, maintenance expense of $17.6 million The annual dividend rate was raised from Construction of the Crystal niver

        $1.95 to S2.10 per common share beginning                       nuclear unit was viewed by the 0007 276 with the December 20,1975 quarterly payment.                    Company's participating partners.

The year 1975 was the 23rd consecutive year that the Company's total common stock ., . - f ,. m dividends have increased. ,f g - p [ Q.; , p /C'

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5 9 in 1975 was only slightly above that reported in CONSTRUCTION EXPENDITURES 1974. Interest charges decreased due to lower mwoss) short-term borrowing requirements and lower $250 interest rates. 900 Construction Program Reduced The overaillevel of the Company's construction 130 C activities has been reduced because of our #'C ' recent inability to finance, and lower sales 100 growth estimates. During 1975, the Company w .t invested $144.4 million in new construction. ,,.,- Almost two-thirds of these funds were used at 50 330 o. 2618 our Crystal River nuclear unit and for the mid- f r[ range combustion turbines at our DeBary site. o _D_ Z_ 71 72 73 74 75 76 77 A portion of the financing of the Crystal River y nuclear unit is being provided by 11 Florida ESWArED municipal and cooperative utilities. With the payment of S38.5 million in July, these utilities Long-Term Financings Completed received a 10% undivided interest in this unit. During 1975, the Company raised almost $52 G They are also providing to 'o of the remaming million through the sale of common stock and construction costs and will receive their notes. The pr'oceeds of these issues were used proportionate share of the capacity when to repav a portion of the short-term obligations the unit goes on-hne in mid 1976. ' incurred to finance new construction. Construction expenditures for the 1976-1980 From September 4 through November 10,1975, period are expected to total S865 million. the Company offered two series of Electric This is $215 million less than forecast a year ago. New genertting facilities, including coal- A new system of 500.000 voit substations and fired plants scheduled for completion in the transmission lines will carry power from 1980's, represent over one-half of the estimated our nuclear unit and increase service reliability. construction expenditures. ~ ,

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6 Consumer Capital Notes. These issues were after public hearings, the Commission granted O offered directly to the public without the use of the Company a $33.3 million interim rate underwriters. The Company received a total increase effective with February 1975 billings. of $24.1 million from the sale of the 8.50% In July, the Commission made the interim Series two-year notes and the 9.10% Series increase permanent, as well as granting five-year notes. en additional $11.8 million for a total of $45.1 On September 18,1975. the Company sold million. The Company was also ordered to 1.3 million shares of common stockin a c llect revenues equal to franchise fees as a negotiated underwriting. The stock was sold at surcharge on customers' bills. These fees a price of $22 per share and the net proceeds amounted to $7.3 million in 1974. The new were S27.6 million. rates became effective as of August 22,1975. The Company's allowable rate of return A new Automatic Dividend Reinvestment and was increased from a range of 8.13% to 8.39% Stock Purchase Plan went into effect with the to a new range of 8.57% to 8.75%. December 1975 quarterly dividend. The new shares issued under the Plan are purchased On September 12,1975, the Company filed a directly from the Company. The proceeds are Petition with the Federal Power Commission to used for our construction program and other increase its wholesale-for-resale rates to purposes. Information concerning stockholder cooperative and municipal customers. participation in the Plan is available by The Company and the wholesale customers contacting the Company. reached a settlement agreement, which was approved by the Federal Power Commission. RATE INCREASES GRANTED and became effective January 1.1976. The new rates provide a $5.4 million increase and The ability to provide service to our customers recognize that further rate relief will be needed in the future was enhanced by recent rate when the Crystal River nuclear unit goes increases. These increases reflected the impact on-line in mid 1976. of inflation on our operations. higher fuel costs and the rising cost of capital. Only FUEL OUTLOOK CHANGING by earning an adequate rate of return can we successfully meet our obligations and provide Residual oilis our primary fuel. In 1975, oil acceptable service. Provided 86% of the energy generated on our New Rates Increase Earnings The Company filed with the Florida Public Line crews were busy upgrading Service Commission in November 1974 seeking equipment and installing new facilities

 $65.6 million in rate relief. In January 1975,        as deferred projects were resumed.
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7 O During 1974, the market price we paid per barrel NET GENERATING CAPACITY INCLUDING of oil almost doubled. In 1975, the price FIRM INTERCHANGE AND PEAK DEMAND increased slightly, but by Decetaber it was M GENE AATING CAPACITY C PEAK CEMANO just below the year-end 197 price level. NEGANATTS) 5.000 Our Company will generate energy using nuclear fuel for the first time during 1976. When Crystal River Unit No. 3 goes on-line, #000 - ocr Company will reduce its dependence on m,. . 't fossil fuel by more than 20% and reduce the 3N 6 iG /fA cost of generating power. The fuel cost of generating electricity with nuclear energy is

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g.- C a T w- '% While the cost of producing ene gy from o_d .'/- nuclear fuel is now lower, the outlook 71 72 73 74 75 , 76 77 , is changing rapidly. The cost of EsTJArED constructing nuclear generating plants is increasing faster than the cost of fossil-fueled plants. An extension of this trend SYSTEM OPERATING DEVELOPMENTS in relative costs could make nuclear power During the past two years, our energy sales have been adversely affected by many 9 plants economically impractical within the near future. The inability of the Federal influences, including the nationwide economic government to provide a comprehensive energy policy is also making the future of nuclear slowdown and continued customer energy generation more uncertain. conservation. However, the trend in sales has been recovering somewhat since the abrupt The most attractive alternate fuel, based on decline during 1974. known reserves and relative cost, is domestic coal. While therc are many obstacles, including Although we have recently experienced above-manpower for mining, transportation facilities, ver ge summer temperatures. our peak energy and environmental questions, our studies demand has been occurring during the winter indicate that coal-fired generating units will

benefit our customers in 'ooth construction '

                                                                                                                                   *                      #   3 and production costs. Our revised plans call                                                          g.                                            vV for coal-fired generation to be installed in                          ,

the early 1980's. 4 ' [ Ilich above ground. new switch gear gets a finalinspection before '0 going into service. ! _ y

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8 O soasons. In December 1975. our winter peak generating units are out of service for rose to 3.281.000 kilowatts while the summer maintenance. peak was 2.975.000 kilowatts. Colder than usual weather this winter caused a peak Coal for Future Generation demand of 3,530.000 kilowatts in january 1976. The Company plans to convert the two oil-fired units in operation at Crystal River to Construct. ion Activity Resumes coal by the end of 1978. In addition, the During the latter part of 1974. the Company's Company's future base load generation will construction program was severely reduced be coal-fired units to be installed during the because of our inability to finance and a early and mid 1980's. The Company cancelled reduction in the rate of demand growth. plans to construct two large nuclear units for Construction activity at our 825.000 kilowatt operation during that period because of the Crystal River nuclear unit, which was 95% uncertainty in the outlook for nuclear generation. completed. was cutback significantly and v.ork However, this does not eliminate nuclear on our 515.000 kilowatt Anclote Unit No. 2 generation in our plans beyond that period. was completely stopped. NEW PATTERNS OF ENERGY USAGE During 1975. some of our construction activities resumed as a result of the rate increase which The historic growth in the use of electricity-became effective in August. Construction by our customers was abruptly changed by the resumed on our Crystal River nuclear unit af ter effects of the energy crisis in late 1973. Annual the rate increase and the sale of 10% kilowatt-hour sales increased steadily during of the capacity of the plant. This unit is the 1960's and early 1970's. Our sales growth scheduled for operation in mid 1976. peaked in 1973. reaching 18%, while sales in 1974 declined almost 2% from the 1973 level. The startup date for our 515.000 kilowatt Anclote Unit No. 2, has been rescheduled f or In 1975, energy sales climbed 4.7% over 1974. late 1970. This unit was originally scheduled This increase is more than twice the national to go into service in late 1975. gr wth rate. The higher sales in 1975 reflect a leveling off of electric rates above In December 1975, two 50.000 kilowatt mid- average summer temperatures and range combustion turbines were placed in an increase in customers. service at our new DeBarv site. By March 1976, when all six units are completed, t' hey will our average number of customers reached 021,780. an increase of 16.448 during 1975. provide 300.000 kilowatts of capacity. These units are designed to operate during the peak periods of demand and at times when larger 4 , Energy conservation has become a way of life, as our customers learn to read electric usage at their meter. ;w a [ ly I j ri;o1 Y ,k

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9 O This increase of 2.7% continues the slower MONTHLY CUSTOMER GROWTH RATE customer growth trend which had reached 12 b 10% in 1973 and dropped to 6.8% in 1974. Residential Sales Up Slightly Energy sales to our residential customers 3 increased 2.4% during 1975. In 1974 residential sales had declined 8.8% from the previous year. The increased sales are due to the additional customers. The average energy usage - by our residential cuMomers of 9.701 kilowatt- 4 hours in 1975. dropped below the 9.758 kilowatt-hours in 1974. and is less than the 1971 average. We increased our customer information 0 programs to stimulate energy conservation. 1971 1972 1973 1974 1975 During the warmer summer weather, customers were advised by television. radio to off peak hours. The result would be a and newspaper advertisements and group more efficient use of the Company's existing presentations that electric usage was rising in facilities by reducing the need to build more spite of their efforts to conserve energy. peaking capacity. 9 energy savings provided by higher Customer bill inserts offered suggestions on thermostat Commercial and Industrial Sales settings of air conditioning units, as well as more efhcient use of other major electrical Sales to our commercial customers have appliances, reilected the increased tourist activity as well as strong retail sales. Although the number of This new pattern of energy use may be changed commercial customers increased very little in further through economic incentives which 075, energy sales increased 8.6% over 1974. could help reduce the Company's construction The rate of sales growth to our industrial and operating costs. This may be achieved customer: continued to shrink. with only a through load management-a method of 2.4% increase over 1974. Sales to phosphate shif ting a portion of customer usage from peak mining and processing plants, which account for Communications programs like this energy Althouch our customer growth rate center display help create an understanding that has declined from its 1973 high, 000~7 281 electricity is a resource to be used wisely. customer inquiries have increased. h N, , . p 7f 5 7 n-

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10 O more than half of our industrial sales, increased initial phase of their Experimental Prototype 14% during 1975. Community of Tomorrow (EPCOT). The World Showcase will have permanent exhibits of the Economic Conditions and Outlook cultures and products of many foreign countries within easy access to the Magic Kingdom. The Florida economy is recovering somewhat slower than the national economy. Year-end unemployment, at 13% remains well above TIIE PEOPLE WiiO SERVE the national average of 8.3% The sharp decline in construction employment and in There were 3.372 men and women employed by construction related industries contributes the Company at the end of 1975. Employment significantly to this high rate. The inventory of reached a peak of 3,737 in 1974 and was reduced to 3,240 in mid 1975 due to cutbacks vacant housing units, especially condominiums and apartments. is slowly being reduced. and a freeze on hiring caused by financial Until a normal housing inventorv is reached, problems. As a result of rate increases granted the outlook for increased construction in 1975, and the subsequent resumption of activity and, therefore, a reduction in the deferred projects, a need to fill a number of unemployment rate is not optimistic. vacant positions was created. Tourism, which is a larger factor than Alm st one-half of our employees are construction in the Florida economy, continues represented by the International Brotherhood to be the bright spot in our recoverv. T. e huge f Electrical Workers. Effective December 22. influx of tourists during the 1974-7'5 winter 1975, the Company and the IBEW began a season exceeded all expectations. Although new two-year contract. It provides for a 9.8% the summer season was not particularly good wage increase during the first year and an in most areas of the state, the 1975-76 winter 8% increase in the second year. season is shaping up as the best ever. During During 1975, the Company adopted an December 1975, major tourist attractions Employees' Stock Ownership Plan. The Plan reported overflow crowds. allows the Company to contribute common stock of the Compny to a trust fund. In 1970. Walt Disney World will begin construction on their World Showcase, the Contributions to the trust are provided by a reduction m the Company s Federal income taxes under the Tax Reduction Act of 1975. Allocations of the contributions are

  ,                                                              made to employees based on their annual
                                       ?                         compensation. There were also revisions in
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11 O Changes in Directors AN ENVIRONh1 ENTAL BALANCE Afr. Harry h!. Smith, a member of our Board Our Company's policy of enhancing and of Directors since 1957, retired in Nfarch 1975, protecting the environment is based on a The Board lost another member with the death balance of economic and environmental needs of Baya h!. llarrison in February 1975. That is, the cost of a better environment should Afr. IIarrison had been a member since 1971. bear a reasonable relationship to the benefits They served as distinguished Board members obtained. The costs that we, and in turn and their contributions to the Company's growth our customers, must meet to comply with were invaluable. Elected to succeed them were environmental regulations continue to lack B. Critchfield. President. Rollins College. increase. Our program of achieving full Winter Park. Florida, and Sam T. Dell Senior compliance with all pollution control Partner. Dell. Graham. Willcox. Barber. regulations calls for modifying existing facilities. Rappenecker, Ryals & IIenderson. Attorneys at as well as constructing and operating new Law. Gainesville, Florida. facilities in accordance with the standards of In August 1975. John F. Childs resigned from performance set by the Federal and the Board, af ter serving as a member for state governments. seven years. On January 15.1976. C. W. The major concerns in air quality control are h!cKee, Jr.. Vice President. Finance and Control. discharges of sulfur oxides and particulate was elected to the Board. Afr. NicKee, a native matter. When fossil fuels are burned to produce of St. Petersburg. Florida, joined the electricity, sulfur oxides and particulate matter Company in 1954. IIe was elected Vice are discharged out of the stack and into President. Finance and Control in O November 1970, the air. To assess the effects of the sulfur oxide discharge on public health, we are

                                           .              participating with other electric utilities in
                                      .                   Florida in a two-year research study. The 7                                    '

Florida Department of Environmental Regulation has requested the completed study

                             -               a            by July 1977, to determine acceptable levels
           ,                                              of sulfur oxides. The Company is presently involved in boiler burner modifications to be in compliance with established particulate standards.

Four of our seven steam generating plants are now in full compliance with all applicable

[- cooling water discharge standards. The other three may require modifications to their cooling

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               .                                          one-year research program to study the 1

effects of the present cooling water discharge g; system on the nearby marine environment. The results of this $1.8 million studv will be used by the U.S. Environmental Protection

       -                 .%                               Agency to determine if additional controls
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f j I;f. p g Board of Directors Andrew H. Hines. Jr. Jack B. Critchfield Sam T. Dell Byron E. Herlong President President Senior Partner President Rollins College Dell. Graham. Willcox. A. S. Herlong F Co.. Inc. p' :-- Winter Park. Florida Barber,Rappenecker. (Citrus Businessi O p ,' _~> f Ryals & Henderson. P.A. (Attorneys at Law) Leesburg, Florida

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N . Frank h!. Hubbard 25$}$_b 0[.15L u Chairman of the Board George W. Jenkins Hubbard Construction Chairman of the Executive Company (Highway Committee. Publix Super Construction) .Wrkets. Inc. Orlando. Florida Lakeland. Florida Robert h!. King Richard C. Johnson Chairman of the Board President-Treasurer

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i, W. J. Clapp J. S. Gracy R. J. Knipe i 7,. , R. J. AfcCutcheon, Jr. Harry h!. Smith

              *'                                       fi '                                                         _

f: ( 4.? j' -} i . ;. ! C # : Officers Other Than Directors S. A. Brandimore T. F. Thompson, Jr. 4 k p, Vice President and %ce President

                                    ,\             J   : -.x _; :- 1::: ! w :-.- u -                                      General Counsel                    Administrative Services C. W. hicKee, Jr.                            A. P. Perez                                                         E. E. Dearmin Vice President                               Retired Chairman                                                    Vice President. Central            J. G. Loader Finance and Control                          of the Board                                                        and Northern Divisions             Secretary and Treasurer e              o.3,        , _                      - m.,           J. E. Gleason                      R. R. Hayes

[, . M b ;1 Vice President. Eastern Controller 7-,;% and Bidge Divisions e' ' Mla B7 L. Griffin J. T. Rodgers Richard E. Raymond Assistant Vice President Senior Vice President

o,'7g;nf'"Y*t' Quality and Environmental System Engineering C and Operations D d,9i h!. F. Hebb, Jr. H. G. Wells wa:\

~'

Vice President. Assistant Assistant Vice President to the President Corporate Planning

                           .                                                                                              A. J. Ormston
              ! s, '         , , '

Vice President. Assistant j,gj, fg ,c7,gg7, ong to the Senior Vice President Assistant Treasurer Lee H. Scott Vice President. Customer Betty hl. Clayton Operations Assista0 0Usary / 284

FLORIDA POWER CORPORATION 13 Statements of Income O FOR THE YEARS ENDED DECENIBER 31.1975 AND 1974 1975 1974 (Thousands) OPERATING REVENUES (Note 1]: Residential . . . . . . S221,134 S180.586 Commerr.ial . . . . . ... 132,530 102,935 Industrial . . . 69,986 54.411 Other . . 80,846 67,061 S504,496 $404.993 OPERATING EXPENSES: Operation-Fuel (Note 1) . S235,138 S200.270 Purchased power 24,202 31,250 Other 40,124 36,647

                                                                                             $299,464           $268,167 h!aintenance (Note 1)                                       . ...                17,611             17,412 Depreciation (Note 1)                        .                       . .         32,826             28.578 Taxes other than income taxes                                              .      30,913             24,203 Income taxes (Notes 1 and 6)-

Federal . . . . . . 31,978 9.089 State 3,329 1,841 9

                                                                                             $416,121           S349.290 OPERATING INCOh!E ,                      . .                         ..            S 88,375           S 55.703 OTHER INCOh!E AND DEDUCTIONS:

Allowance for funds used during construction (Note 1] $ 30,416 S 36,666 Cain on reacquired bonds 1,702 1,947 h!iscellaneous other income and (deductions) (Note 5) (998) 1.275

                                                                                             $ 31,120           $ 39.888 INTEREST CHARGES:

Interest on long-term debt . . . S 43,892 S 43.113 Other iraerest expense . . 8,560 10,650 S 52,452 5 53.763 NET INCO.\!E . . . . . . . S 67,043 S 41,828 DIVIDENDS ON PREFERRED STOCK . . 13,733 11,785 NET INCOh!E AFTER DIVIDENDS ON PREFERRED STOCK . . . S 53,310 S 30.043 AVERACE SHARES OF COhth!ON STOCK OUTSTANDING . . . 13,246,038 12,436.459 EARNINGS PER SHARE (Note 1): Per Average Common Share $4.02 $2.42 Per Average Common Share-Assuming Full Dilution $3.93 $2.37 The accompanying notes are an integral part of these statem mts. - r e ?

y. .

6 0 %E

14 Balance Sheets DECEMBER 31,1975 AND 1974 ASSETS 1975 1974 (Thousands) ELECTRIC PLANT (Notes 1 and 7): In service and held for future use . . $1,181,832 St.129.452 Less-Accumulated depreciation . . . . 223,736 198,391 S 958,09G $ 931.001 Construction work in progress (includes nuclear unit of $313.128.000 in 1975 and $297.109.000 in 1974) , 411,193 309,627 Nuclear fuel assemblies . . 30,362 30,722 S1,399,651 S1.331.410 OTHER PROPERTY AND INVESThfENTS. at cost: Nonutility property . . . . . . . S 4,22G $ 4,032 Other investments . . . . 801 767

                                                                                $    5,027        S     3,399 CURRENT ASSETS:

Cash (Note 4] . . . . . . $ 10,642 $ 11.028 Special deposits . . . 2,944 2,985 Accounts receivable, less reserve of $1.145,000 in 1975 and $334,000 in 1974 . . . . . 34,919 30,327 Income taxes receivable . . . . . . . .

                                                                                       -                7,724 hiaterials and supplies, at average cost-Fuel   .       . . . .                                     .          27,110             27.330 Plant materials and operatir.g supplies              .         .      31,073             31.286 Prepayments            . .    .      . .           .          .              614               814 S 107,308         S 111.494 DEFERRED CHARGES:

Unamortized debt expense, being amortized over term of debt . . . . . . . . . S 4,24 G S 4.306 Other (Note 7) . . . . . . . . 8,365 3,161 S 12,611 S 7,467 S1,524,597 $1.455.770

The accompanying notes are an integral part of these statements.

  %,. sI 0007 286

FLORIDA POWER CORPORATION 15 O CAPITALIZATION AND LIABILarIES 1975 1974 (Thousands) CAPITALIZATION (see accompanying statements): Common stock, surplus and retained earnings S 424,671 S 360,945 Cumulative preferred stock 17. ,,,J2 179,462 Long-term debt . . 661,!. 5 642.808 St.264.078 $1,192.215 CURRENT LIABILITIES: Accounts payable . . . S 15,613 S 16.218 Customers' deposits . 16.114 11,913 Accrued income taxes . 2,919 - Accrued other taxes . 10,143 19,588 9 Accrued interest . 8,966 9.444 Other . . . 3,981 4.083 S 57,736 S 61.246 Bank loans (Note 4) . . 40,000 83.840 Commercial paper (Note 4) 27,700 13,375 S 125,436 S 158,461 DEFERRED CREDITS (Note 1): Accumulated deferred income taxes S 108,755 S 83,489 Accumulated deferred investment tax credits 24,907 19,945 Other . . . . 1,421 1.660

                                                               $ 135,083             S 105.094 CONSTRUCTION PROGRAM (Note 7)

SI.524,597 . St.455.770 i . 0007 287-w

 ,, s .

16 Statomonts of Rotoined Earnings FOR TIIE YEARS ENDED DECEh1DEP. 31,1975 AND 1974 1975 1974 (Thousands) Dalance at Beginning of Year $164,760 S160,589 Add-Net income af ter dividends on preferred stock 53,310 30.043

                                                                        $218,070            $190.632 Deduct:

Cash dividends on common stock; quarterly dividends equivalent to the following annual rates-

         $1.05                                                          5 18.828             $ 24.080
         $2.10                                                               7,441                  -

Expense of issuing common and preferred stock 1,099 1,792

                                                                        $ 27.368             S 25.872 Balance at End of Year                                                $190,702             $164.760 Statomonts of Source of Funds Used For Construction FOR TifE YEARS ENDED DECEMBER 31,1975 AND 1974 1975                 1974 (Thousands)

SOURCE OF FUNDS: Funds Derived from Operations-Net income after dividends on preferred stock $ 53,310 S 30.043 Less-Dividends on common stock 26,269 24.080 Earnings retained in the business 5 27,041 S 5,963 Items included in net income not requiring cash outlay-Depreciation 32,826 28,578 Deferred income taxes and investment tax credit 26,874 26,262 Common equity component of allowance for funds used during construction f* 447) (12.990)

                                                                        $ */5,094            S 47,813 Net (Increase) Decrease in Net Current Assets fexclusise of short-term debt and temporary cash investments) (a)                    $         677       (S 32,190)

Funds from Financing and Other Sources-Joint participation agreement in Crystal River nuclear unit S 41,151 S - Guarantee of pollution control revenue bonds - 10.309 Dank term loan - 50,000 Electric Consumer Capital Notes 23,965 - Preferred stock - 44.445 Common stock 27,611 17,559 Net increase (decrease) in short-term borrowing (29,515) 71,373 Decrease in temporary cash investments - 14,201 Donds and preferred stock matured or reacquired for sinking fund (6,533) (19.222) Common equity component of allowance for funds used during construction 11,647 12,990 Other sources (net) 347 11.600

                                                                         $ 68.673             S213.321 FUNDS USED FOR CONSTRUCTION                                            S144,444             S228.944 (a) Analysis of (Increase) Decrease in Net Current Assets-Cash and special deposits                                         S        427        ($ 4,680)

Accounts receivable (4,592) (11.692) Income taxes receivable 7,724 (7.724) Materials and supplies 428 (28,345) Accounts payable (603) 4,784 Accrued taxes and interest (7,004) 14,934 Other (net) 4,299 533

                                                                         $         677       (S 32,190)

The accompanying notes are an integral part of these statements. m(La

                                                                                             '0~007 ?

FLORIDA POWER CORPORATION 17 Statements of Capitalization 31.1975 AND 1974 OJECEh!BER 1975 1974 COh!A!ON STOCK, SURPLUS AND RETAINED EARN-INGS (Note 3): Common stock, S2.50 par, authorized 30.000.000 shares Common Stock Listed (443.045 shares reserved for conversion of convertible New York debentures). outstanding 14.177,817 shares in 1975 and Stock behange 12,873,959 in 1974 . . . $ 35,445 S 32.185 Premium on common stock . 197,081 171,631 Transfer Agent for Common Stock Capital surplus . . . . 1,443 1,360 Manufacturers Hanover Retained earnings, including S43,796,000 not available for Trust Company dividends on common stock . 190,702 164,760 New York. N.Y. S 424,671 34 % S 369,945 31 % CUh!ULATIVE PREFERRED STOCK (Notes 2 and 3): S100 par, authorized 4.000,000 shares-Shares Series Outstanding 4 %-4.75 % 335,000 $ 33,500 $ 33,500 Transfer Alent for 7.40 % 300,000 30,000 30,000 Preferred Stock 7.76 % 500,000 50,000 50.000 Chemical Bank 8.80 % 200,000 20,000 20,000 New York, N.Y. 10 % . . . 434,200 43,420 45,000 Premium on preferred stock . . . . . . . 962 962

                                                                       $ 177,882 14 %     S 179.462 15 %

9 PREFERENCE STOCK:

     $100 par, authorized 1,000,000 shares     .         . .         . $        -

LONC-TERht DEBT (Note 2): First mortgage bonds-3% % due November 1,1978 S 5,629 $ 5.808 Trustees for hiaturing 1981 through 1990-3%% to 4% % 82,986 85.366 First Mortgage Boads h!aturing 1991 through 2000-4% % to 9% 187,447 189,875 Morgan Guaranty Trust hiaturing 2001 through 2003-7%% to 8% 280,000 280,000 mpany of New M Florida First National Premium, being amortized over term of bonds 6,113 6,435 Rank of Jacksonville Par value of bonds reacquired to meet cash sinking fund requirements . (5,135) (5.095) Convertible debentures,4%% due August 1,1986 (con- Trustee for vertible into shares of common stock at the rate of Convertib!e Debentures one share for each S44.00 of principal amount) 19,494 19,494 Irving Trust Company New York, N.Y. Electric Consumer Capital Notes-Due October 1. 1977 - 8.50 % 12,826 Tr' a te fx Due October 1, 1980 - 9.10 % 11.298 - Electric Consumer Guarantee of 7%% pollution control revenue bonds due Capital Nctes 2004 10,575 10,575 Southeast National Bank Bank term loan at 115% of prime rate. due 1979 50,000 50,000

                                                                                                              '          '* "'I Promissory notes. 7th%                                                     292                350 S 661,525 52 %     S 642.808 54 %
                                                                       $1,264,078         S1,192.215 The accompanying notes are an integral part of these statements.

gg ('

  .l i . (-  ,

18 Notes To Financial Statements (1)

SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES Electric Plant-Electric plant is stated at the original cost of construction which includes payroll and related costs such as taxes, pensions, and other fringe benefits, general and administrative costs and an allowance for funds used during construction. Substantially all of the Company's electric plant is pledged as collateral for the first mortgage bonds. Operating Revenues and Fuel Expense-The Company recognizes revenues concurrent with billing to customers. The cost of fuel for electric generation is charged to expense as burned. Depreciation and Maintenance-The Jompany provides for the depreciation of the original cost of properties over their estimated use'ul lives on a straight-line basis. The annual provisions for depreciation. expressed as a percentage of the average balances of depreciable plant, for the years 1975 and 1974 were 3.17% and 3.18% respectively. The Company charges maintenance with the cost of repairs and minor renewals of property, the plant accounts with the cost of renewals and replacements of property units and the depreciation reserve with cost, less net salvage, of property units retired. Allowance for Funds Used During Construction (AFDC)-This item represents the estimated cost of funds applicable to utility plant in process of construction. Recognition of this item as a cost of utility plant is appropriate because it constitutes an actual cost of construction and, under established regulatory rate practices, the Company is permitted to earn a return on such costs and to recover them in the rates charged for utility services. Assuming that funds used to finance construction during the years 1975 and 1974 were supplied in the same proportion as the capitalization ratios used in developing the AFDC rate (presently 50% from long-term debt; 14% from preferred stock equity: 28% from common stock equity and 8% from deferred taxes and customers' deposits), the common equity component of AFDC as related to earnings on common stock was 22% for 1975 and 43% for 1974. Ccccurrent with a rate increase effective on August 22,1975, the rate used in computing AFDC, which had been ir, creased from 9% to 10% % on July 1,1974, was reduced to 8.66% effective September 1,1975. This revision is the result of changing the cost components used in determining the rate from the incremental to the embedded cost of long-term debt and preferred stock equity. In addition, the construction work in progress base against which this rate is applied was reduced by approximately $106.250.000. The amount excluded from the base for computing AFDC was included in the rate base for ratemaking purposes. These changes reduced AFDC by $5,173,000 for the year ended December 31,1975. For the overall effect of the rate order, see Note 7. Pension Costs-The Company has a retirement plan for substantially all employees. The Company's policy is to fund pension costs accrued. Pension costs for the years 1975 and 1974 were $5,137,000 and

  $3.816.000 respectively. The unfunded past service liability of the plan was approximately $12,026.000 at December 31,1975 and $13.062.000 at December 31,1974. In 1975, the Company changed the funding of the past service liability of the plan from a 25 year to a 10 year period. This change increased annual pension costs by approximately $790.000. The assets of the plan exceed the actuarially computed value of the vested benefits at December 31,1975.

The Company h'as amended its pension plan to comply with the Employee Retirement Income Security Act of 1974. The increased costs are not significant. Id v, ,

0007 290

FLORIDA POWER CORPORATION 19 9 Income Taxes-Deferred income taxes result primarily from the use of liberalized depreciation, accelerated amortization and from the deferral of taxes on the interest component of the allowance for funds used during construction and other book-tax timing differences as recognized in rates by the Florida Public Service Commission. Concurrent with the rate increase effective August 22,1975. the Company adopted full normalization of substantially all current book-tax timing differences. The investment tax credits, including job development investment tax credits. have been deferred and are being amortized through credits to income over the lives of the related property. Earnings Per Share-Earnings per common share were determined based on the weighted average aumbe* of shares outstanding during each year. Earnings per share assuming full dilution. were determined on the assumption that the 43's o' Convertible Debentures were converted on January 1 of each year. (2) SINKING FUND REQUIREMENTS The annual sinking fund requirement relating to the First Mortgage Bonds at December 31,1975 is

   $9.250.000 of which S4,987,500 must be satisfied in cash or an equal principal amount of bonds and the balance may be satisfied with bondable additions. At December 31,1975, the Company had reacquired O35.135,000 principal amount of Lands. This amount will be used to satisfy th requirement and the remainder will be used for future sinking fund requirements. The balance of the 1976 sinking fund requirement will be met with bondable additions.

The Company is also required to redeem and retire 15,750 shares of the Cumulative Preferred Stock, 10 o Series, before August 15 of each year. (3) CIIANGES IN EQUITY SECURITIES The changes in equity securities for 1975 and 1974 are as follows: Premium Premium on Common on Capital Preferred Preferred Stock Common Stock Surplus Stock Stock (Thousands) Balance December 31,1973 S29,560 $155,487 S1,369 $133,500 $962 1.050,000 Common shares sold 2,625 16,144 - - - 10 'o Series. 450,000 shares sold - - - 45,000 - Balance December 31,1974 $32,185 S171,631 S1,369 $178,500 $962 1,303.858 Common shares sold 3,260 25,450 - - - 10% Series 15,800 shares reacquired ~4 (1,580] 9 Balance December 31,1975 . . S35,445 S197.081 S1,443 $176,920 S962' im< ,

                                                                                            - b007291

20 Notes To Financial Statements (4) SHORT-TERM DEBT The Company has established lines of credit which total approximately $100 million, with interest payable at the prime rate. With the exception of basic working funds, substantially all cash of the Company represents compensating balances, which are not legally restricted, maintained in support of these lines of credit. At December 31,1975. the Company had unused lines of credit of $32.3 million. The. .ximum amount, average monthly amount and the weighted average interest rate of short-term bor eings during 1975 and 1974 were: 1975 1974 (Thousands) Maximum amount . . . . $100,340 $123,676 Average monthly amount . . . . . $ 75,035 $ 91,941 Weighted average interest rate . . . 8.1% 10.8 % (5) SALE OF NUCLEAR FUEL in 1974, the Company sold nuclear fuel materials for a gain of $2,094,000 or $.17 per share. (6) INCOME TAX EXPENSE The amounts comprising income tax expense are detailed as follows-197s 1974 (Thousands) Federal State Federal State Payable currently (refund) . . . . . . . . $11,952 $1,759 ($12.030) $- Deferred to subsequent years (a) . . . . . . 24,711 2,717 19,954 2,195 Deferred income taxes-credits . . . . . . . (5,712) (454) (1,551) (28) Investment tax credit, net of amortization . . . 5.612 - 5,692 - Income tax expense . . . . . . $36,563 $4,022 $12,065 $2.167 Taxes included in miscellaneous other income and deductions . . . . . . . . . (4,585) (693) (2,976) (326) Income tax expense on statements of income . . $31,978 $3,329 $ 9,089 $1.841 (a) The components of income tax deferred to subsequent years were as follows: 197s 1974 (Thousands) Federal State Federal State Excess of accelerated tax over straight line tax depreciation . . . . . . . . . $ 9,909 $1.090 $ 7,062 $ 771 Interest component of AFDC . . . . . . . . 6,282 694 7,656 850 Normalization of construction costs and other property related items deducted for tax purposes 6,955 762 5,236 574 Other . . . . . . . . . . . . . . 1,565 171 - -

                                                                                    $24.711        $2,717         $19,954        $2.195
    ,y        . ,

0007 292

FLORIDA POWER CORPORATION 21 O Total Federalincome tax expense as set forth above produces an effective income tax rate of 35% in 1975 and 20% in 1974. Such effective tax ratcs are less than the statutory Federalincome tax rate of 48% by 13% for 1975 and 26% for 1974 for the reasons shown below: 197s 1974 Equity portion of the allowance for funds used during construc-tion, which is not taxable income . . . . . 7.3 % 18.5 %

               " Flow-thru" of items capitalized on books but deducted for tax purposes . . .          . . .       . . . . .        .       . .      1.7          5.4 Acjustment of income taxes provided in prior periods .                   2.8           -

Other . . . . . . . . . . . . . 1.2 2.1

                                                                                     - 13,0 %       26.0 %

Federalincome tax expense for 1975 has been reduced by S2,947,000, or S.22 per share, representing the adjustment of income tax provided in prior years. Adjustments were made upon completion of an audit by the Internal Revenue Service for the years 1969 through 1971. (7) CONSTIUCTION PROGRAM AND RATE MATTERS In 1975, the Company cancelled construction of two nuclear plants previously scheduled for completion in the 1980's. Accumulated costs on the projects of S3,775,000 are included in other deferred charges and will be written off over a three-year period beginning in 1976. On August 22,1975, the Florida Public Service Commission granted the Company a rate increase designed to increase revenues by approximately $52A00,000 including a previously granted interim increase of 9 $33,300,000. A portion of the rateincrease reflects accounting and regulatory changes designed to improve cash flow and does not result in an increase in net income. The principal changes are the inclusion of $106.250,000 of additional construction work in progress in the rate base with a related reduction in the AFDC. a change in the method of computing the AFDC rate and full normalization of current book-tax timing differences. The overall effect of this rate order was to increase net income for 1975 by approximately $14.000,000. The Company's construction budget for 1976 is approximately $130 million and substantial commitments have been made in connection therewith. Report of Independent Certified Public Accountants To the Stockholders of Florida Power Corporation: We have examined the balance sheets and statements of capitalization of Florida Power Corporation (a Florida corporation) as of December 31.1975 and 1974, and the related statements of income, retained earnings and source of funds used for construction for the years then ended. Our examination was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. In our opinion. the financial statements referred to above present fairly the financial position of Florida Power Corporation as of December 31.1975 and 1974. and the results of its operations and the source of funds used for construction for the years then ended,in conformity with generally accepted accounting principles consistently applied during the periods. 9 Tampa, Florida, January 30,1976. ARTHUR ANDERSEN & CO.

 ;.G        -

l0'007 293"

22 Summary of Operations Operating Expenses S 235,138 Other Operating Expenses S 416,121 S 349,290 Operating Income (52,452) (53,763) Interest Charges . S 67,043 $ 41,828 13,733 11,785 Net income after Average Shares Earnings per Average Common Share S 661,525 $ 642,808 177,882 179.462 Common Stock Equity 3,187,479 2,935,162 Industrial . . Total . . . Revenue per KWH . . . . . . . 3,281,000 2,989,000 10,024 10,367 Fuel Cost per Million BTU . ya 1971-1975 (Thousands) 1975 1974 1973 1972 1971 S 504,496 S 404,993 S 255,045 $ 201,857 $ 176,540 Operating Revenues . . . . . . S 200,270 $ 75,087 S 41,061 S 37,267 Fuel . . . . . . . . 145,676 138,090 107,411 84,705 74.323 35,307 10,930 19.813 22,978 18,171 Income Taxes . . . . . $ 202,311 S 148,744 S 129,761 Total Operating Expenses . . . . . . . S 29,375 $ 55,703 S 52,734 $ 53.113 $ 40,779 31,120 39,888 28.022 15,490 9,137 Other Income (Net), . . . . . . . (36,623) (26,596) (20,684) . . . . . . S 44,133 $ 42,007 S 35,232 Net Income . . . . . . . . . 5,718 4,524 3,287 Dividends on Preferred Stock . . Dividends on Preferred S 53,310 S 30,043 $ 38,415 S 37,483 $ 31,945 Stock . . . . . . . . . . . . of Common Stock 13,246 12,436 11,303 10,574 10,172 Outstanding [000) . . . . . . $4.02 $2.42 S3.40 $3.54 $3.14 Dividends per Common Share . . . $1.9875 S1.95 $1.80 $1.74 $1.68 Other Financial and Operating Data 1971-1975 1975 1974 1973 1972 1971 CAPITALIZATION (Thousands) $ 586,971 $ 469,262 S 374,207 Long-Term Debt . . . . 134,462 83,942 53,531 Preferred Stock . . . . . . . . 424,671 369,945 347,005 281,315 262,605 Total . . . . . . . . . . S1,264,078 S1,192,215 $1,068,438 S 834,519 $ 690.343 ELECTRIC SALES (Thousands of KWH) 5,411,991 5,285,716 5,793,242 4,717,235 4,133,335 Residential . . . . . . . 2,836,292 2,403,398 2,134.106 Commercial . . . . . . . . . . 2,479,378 2,421.715 2,349,572 2,196,766 2,029,686 2,864,816 2,671,120 2,594,171 2,204.689 1.786,038 Other . . . . . . . . . . . . . 13,943,S64 13,313,713 13,573,277 11,522,088 10,083,165 RESIDENTIAL SERVICE (Average Annual) 9,814 KWH Sales per Customer . . 9,701 9.758 11,459 10.277 S396.37 S333.37 $248.34 S214,92 S207.50 Revenue per Customer . . . . . 4.09C 3.42C 2.17C 2.09C 2.11C OPERATING DATA 51,623,387 $1,529,801 $1.332,487 $1,105,597 $ 927,741 Investment in Electric Plant (000) 3,712,000 3,625,000 2,720,000 2,540,000 2,292,000 Net Generating Capability (KW) . 2,862,000 2,497,000 2,077.000 Net System Peak Load (KW) . 10,662 10.545 10,505 BTU per KWH of Net Output . . $1.68 St.51 S.54 S.32 S.34 Average Number of Customers . . 621,780 605,332 566.935 515,312 472,743 3,372 3,478 3,576 3,080 2,784 Number of Employees . . . . 0007 2

FLORIDA POWER CORPORATION 23 iscussion of the Summary of Operations Operating Revenues. For the year 1974, kilowatt-hour generated. Other operating expenses in 1974 sales declined due to energy conservation and mild were affected primarily by increases in weather, but operating revenues increased because purchased power which also reflect ~i higher of the operation of the fuel adjustment clause end fuel prices. In 1975, purchased pour as a result of rate increases. In 1975, operating decreased approximately $7 million primarily revenues increased due to rate relief effective due to the addition of the Anclote Plant. Income February 1.1975, and August 22, 1975, increased taxes declined in 1974 as a result of a decline in customers, and warmer weather, which resulted taxable earnings, but subsequently increased in 1975 in a greater air conditioning load. when the Company's taxable earnings improved. Operating revenues increased approximately OtherIncome. Other income in 1974 increased

     $99.5 million in 1975 and $150.0 million in 1974.

because of a change in the rate used for the The principal factors causing these increases were as follows: allowa. ice for funds used during construction and the profit on the sale of nuclear fuel in Millions materials. In 1975, the decline was caused of Dollars by a reduction in the allowance for funds 197s 1974 used during Construction, which is explained increase in revenue due to increase in Note 1 to the Financial Statements, and the in price per kilowatt-hour sold S79.0 $153.6 absence of the profit on the sale of nuclear Change in revenue due to kilowatt. fuel materials. hours sold . 18.9 (4.7) Interest Charges and Preferred Dividends. Record increase in other revenues 1.6 1.1 annual construction expenditures in 1974 and the

                                                            $99.5        $150.0           associated external financing through the sale of debt and equity securities resulted in increased interest perating Expenses. In 1974, the entire increase                                    charges and preferred dividends. In 1975, lower in fuel costs was due to increased fuel prices. In                                    interest rates and reduced amounts of short-term 1975, increased costs of fuel and increased                                           debt outstanding reduced interest charges. Dividends consumption were partially offset by a decrease                                       on preferred stock continued to increase because of in the fuel burned per net kilowatt-hour                                              the preferred stock sold in the middle of 1974.

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                                                                                                                                                                 ~
                                                                                                                                                                     '          1 Common Stock Price and Dividends: Per                 -
                                                                                         ; +Share:'    ;
                                                                                                                    .               .'                 ..                        d 1
                                                                   ^
                                                                                                                                                                                '1
                                                              ' Price El Common Stock on New York Stock Exchange c                                 ,                            1 v                     >.~, . -+
                                                                                                                                                                          '   ~n
                                                                                         ' ,                                              :D                                      i "1975                      ^ ~ .1971          '
                                                                                                                                     . 3 ividends
                                                                                                                                             ~ Per Share       Paid-            l
                                                                                                                                                                                ~{

Hight y {Highf j Low c Low] . g. ' ; 197s 19 4

                                                                     ;$21% '$13%
                                                                                                                          ~

First Quarter .' . . . . . .

                                                                                                       - $30%h . ($2492              l$.4875' L S.4875 -                        sf Second Quarter .            . . . . . .                 : 26% ' c18% e                    124 % 2 .16% :                  .4875     2
                                                                                                                                                              .48751          ~
                                                                                                   ~

Third Quarter . . . . . . . . : 25% 21 % - .18 % . . 10%: ' < ~.4875 .4875 i

                                                                                                                                                                                  ^1 Fourth Quarter .            . . . . . .                   29%;         23 % '.          " 17%          .12 % -            .525 ~               .4875
                      . . . - . ~ . -              - ~ ~ a ~ . -. w .a                            .-      - ~ . -                  w. ~ -                            . ~ ~ a detailed statistical report is available by writing J. G. Loader. Treasurer.

elorida Power Corporation, P. O. Box 14042, St. Petersburg, Florida 33733. y- - 00n1 295

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O O if E b o s O o~ E O D007 297
Exhibit 6 TECHNICAL QUALIFICATIONS
~~1. FLORIDA POWER CORPORATION TECHNICAL QUALIFICATIONS 1.1 GENERAL Florida Power Corporation has 75 years experience in the design, construction, and operation of electric generating plants.~~
At present, Florida Power Corporation operates seven steam-electric ' generating plants containing a total of 18 units with a net capacity of 2,397,000 kilowatts, and 24 gas turbine peaking units with a total capacity of 1,228,000 kilowatts for a total net electric generating capacity of 3,625,000 kilowatts. Florida Power Corporation started construction in mid 1971 of a 2 Unit 1030 MWe fossil fueled steam-electric generating station at a new site in Pasco County, Florida. Unit I was made operational in September, 1974, and Unit 2 has been indefinitely postponed.
1. 2 PARTICIPATION IN NUCLEAR PROJECT ACTIVITIES Following the passage of the Atomic Energy Act of 1954, Florida Power Corporation, Tampa Electric Company, and Florida Power and S Light Company joined together in a study group to evaluate the ,
application of Nuclear power in Florida. This group, known as the Florida Nuclear Power Group, engaged in an extensive study with The Babcock and Wilcox, Allis-Chalmers Manuf acturing Company, and Stone and Webster Engineering Corporation on various reactor types. Late in 1956, the Florida Nuclear Power Group employed the General Nuclear Engineering Corporation to begin conceptual work on a natural uranium heavy water reactor project to compete with fossil fuel power plants. In 1957, Florida Power Corporation and Tampa Electric Company jointly formed a new organization, known as the Florida West Coast Nuclear Group. This group combined its ef forts with the East Central Nuclear Group, composed of 12 electric utilities in the Ohio Valley area, to research a prototype 50 MWe high temperature gas cooled heavy water moderated reactor of the pressure tube type. The design investigation for this prototype reactor revealed that the energy cost could not meet the criteria limits established as being economically feasible. In 1961 the project was discontinued, although the FWCNG is still in existence. Florida Power Corporation was a member of the Savannah River Study Group, and is currently a financial contributor to plutonium fuel research through the EEI-APDA program. In support of the continued development of better methods for resource utilization, Florida Power Corporation is participating in two major breeder reactor development projects. Florida Power Corporation is financially supporting the Breeder Reactor Corporation Liquid Metal Fast G . .
~~~0007 2981 1~~
Am. 46 (8-22-75)
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~~Breeder React (LMFBR) demonstration plant program and the Gas-Cooled Fast Breeder Feactor (GCFR) Demonstration Plant development program being administered by Gulf General Atomic Company.~~
.3 NUCLEAR EXPERIENCE OF KEY OFFICERS Mr. Andrew H. Hines, Jr., President & Chief Executive Officer of Florida Power Corporation directs, through Corporate Management, the functioning of Applicant's Engineering, Censtruction, and Operating Departments 3 including the design, engineering and operation of Crystal River Unit Nuclear Generating Plant.
Mr. Hines graduated from the University of Florida in 1947 and received his Bachelor's Degree in Mechanical Engineering with high honors. Following graduation, Mr. Hines spent four years doing research and development with the General Electric Company in the northeastern United States.
~
In 1951, Mr. Hines joined Florida Power Corporation as an Assistant Production Engineer. He also served as Industrial Sales and Area Development Department head. In 1961, he was assigned responsibilities in the Division Operations Department. He was promoted to Vice President in 1967. In 1968, Mr. Hines was elected to the Board of Directors and on March 30, 1972, he was named President. Mr. Hines was named Chief Executive Officer on March 29, 1973. Mr. Hines attended a brief nuclear seminar at the University of Florida in 1956, a one week training seminar at the Babcock & Wilcox Lynchburg office in 1970, and a General Electric Boiling Water Symposium in December of 1970. Mr. Hines is a member of the American Society of Mechanical Engineers and 9 is a registered Professional Engineer in the State of Florida. Mr. Richard E. Raymond, Senior Vice President - Systems Engineering and Operations, is responsible for all Generation Engineering Services. He has responsibility for engineering design of power generation facilities, new plant site investigation, developing and administering scheduling, estimating, budgeting, cost management and engineering services. He is responsible for developing procedures and providing surveillance to assure compliance with design criteria and with federal regulations during construction of nuclear generating facilities. A graduate of the University of Florida (1939) with a Bachelor of Science degree in Electrical Engineering, Mr. Raymond joined Florida Power Corporation upon graduation, and progressed through various positions in Districution Engineering, St. Petersburg Division in 1956, then to Assistant Superintendent, Transmission and Distribution Department; Chief Engineer, Operations; Senior Vice President System Operations, Senior Vice President, Systems Engineering and Operations, and was elected to the Board of Directors in 1970. Mr. Raymond has completed the EEI Course on Nuclear Power for Electric Utility Management, the Nuclear Operations Short Course for utility management (B&W), the Introduction to Nuclear Engineering (FPC) and has attended the " Chief Executive Seminar on Fusion Power" at Princeton University. g 0007 299 2 Am. 46 (8-22-75)
Mr. Raymond is a member of the National Society of Professional Engineers, American Nuclear Society, Florida Engineering Society, Institute of Electrical 9 and Electronics Engineers, Edison Electric Institute University of Florida, Engineering Advisory Council and is chairman of the University of Florida College of Engineering, Department of Electrical Engineering Visiting Committee. Mr. Bill L. Griffin, Vice President - System Operations, has overall responsibili-ty for system maintenance, operation and power generation for Florida Power Corporation. This includes operation of all generating facilities through the Production Department. Mr. Griffin will have responsibility for the commercial operation of the Crystal River Nuclear Plant through the Production Department. A 1952 graduate of Clemson University, with a BS degree in Mechanical Engineering, he has advanced through various engineering responsibilities and in January 1972 was made Assistant Vice President, Construction, Maintenance and Operation. In November 1973, Mr. Griffin was made Assistant Vice President, System Operations, and in December 1973, he was made Vice President, System Operations. Mr. Griffin has attended and participated in many nuclear seminars and conferences including some sponsored by the Atomic Energy Commission. Mr. Griffin is a member of IEEE, National Society of Professional Engineers, Florida Engineering Society, and is a registered Professional Engineer in the State of Florida. Mr. J.T. Rodgers, Assistant Vice President - Quality & Environmental is responaible for the management of Florida Power Corporation's Quality Program, and the environmental and licensing effort for power G plant projects. Specifically relating to Crystal River Unit 3, this position is responsible for overall evaluation and approval of: A. Quality Program activities relating to the nuclear safety systems in the plant. B. Environmental considerations and all licensing, including input to engineering and construction activities. Environmental / permit surveillance activities are included in this position. C. Consulting services for the project required by the Quality & Environmental organizations activities. A graduate of the University of Florida (1949) with a Bachelor of Mechanical Engineering degree, Mr. Rodgers started with Florida Power Corporation the same year, at its Bayboro Steam Electric Generation Station. He progressed through various phases of power plant operation, design and construction, including work on 18 steam electric generating additions and 10 gas turbine peaking units, and in 1956 was made Assistant Chief Mechanical Engineer. In 1964 Mr. Rodgers was appointed to the responsibilities of Chief Mechanical Engineer, and in early 1967, was given the additional duties of Nuclear Project Manager. In 1968 he was made Director-Power Engineering & Construction, in 1971 elected Assistant Vice President Generation Engineering, and in 1974 he was named Assistant Vice President - Quality & Environmental. Mr. Rodgers is a former member of Florida Governor's Advisory Committee on Water Quality. He has participated extensively in Florida Power Corporation's nuclear 9 power design studies and has attended the NUS Fuel Management Course, and the Georgia Tech Utility Management Summer Course. Mr. Rodgers has been responsible for the preliminary nuclear engineering activities and planning leading to the commitment of the Crystal River Nuclear Plant. 3 Am. 41 (8-26-74)
Mr. Rodgers is a member of the American Society of Mechanical Engineers, American Nuclear Society, Air Pollution Control Association (Company representative), Atomic Industrial Forum (Company Alternate representative), American Management Association, and is a Registered Professional Engineer in the State of Florida. 1.4 TECHNICAL QUALIFICATIONS OF FLORIDA POWER CORPORATION'S POWER PLANT DESIGN ENGINEERING MANAGEMENT STAFF Mr. Ned B. Spake, Director-System Engineering, has direct management responsibility for the administration of all generation, transmission and substation design; development of distribution materials and design standards; 91 ant and building design; engineering services and systems analysis; and real estate operations. Mr. Spake has the responsibility for the development and tF2 administration of engineering schedules, estimates, budgets, and cost contrc is . He is also responsible for the development of procedures and survei' lance pregrams to assure high quality and economical engineering design and confc rms with federal, state, and local regulations or laws. Mr. Spake is a 1957 grtduate of the University of Florida with a Bachelor of Industrial Engineering Degree and a 1967 graduate of Rollins College with a Bachelor of Business Administration Degree. Upon graduation in 1957, Mr. Spake joined Florida Power Corporation and has progressed through the oistribution engineering design area to the position of Division Engineer, Winter Park Division, in 1962. Division Engineer responsibilities included construction and operation of the distribution engineering design. He further progressed to his present position of Director-System Engineering in 1972, assuming the additional responsibility for the supervision and adminstration of the company's Generation O Engineering and Generation Services Departments in May 1974. Mr. Spake's experience in the electric utility industry totals over 18 years in the areas of design, electric system operations, construction and maintenance. He is a Registered Professional Engineer in the State of Florida and is a member of the National Society of Professional Engineers and the Florida Engineering Society. Mr. Alfonso L. Comez, Director-Generation Engineering, is a 1955 graduate of the University of Havana, Cuba, where he received a degree in Electrical Engineering. Mr. Gome: participatedin a General Electric Training Program for graduate engineers from 1955 to 1956 and has taken additional post-graduate courses at the University of South Florida. Mr. Gomez was heavily involved in the design of Crystal River Unit 3, and has actively participated in the approval of elementaries of control systems for Crystal River #3. Since 1957, he has worked in the areas of power plant design and construction. During this time, Mr. Gomez participated in the design of substations up to 400 KV, and the construction and testing of eight power plants including gas turbine installations. Mr. Gomez is responsible for the engineering design of all new electric generating facilities and major modifications to existing electric generating facilities. He is a licensed Professional Engineer in the State of Florida. The Generation Engineering Department is under the direction of the Director-Generation Engineering who is responsible to the Director-System Engineering. h :0007 30f 4 av- - < Am. 46 (8-22-75)
Mr. William S. O'Brien, Director-Environmental & Licensing Affairs, received a Bachelor of Mechanical Engineering degree from the University of Florida in 1963, and under the sponsorship of Florida Power Corporation, a Bachelor of Nuclear Engineering Sciences degree from the University of Florida in 1968. Mr. O' Brien was employed as a Staff Engineer f rom 1963-64 by General Nuclear Engineering Corporation of Dunedin, Florida, a nuclear research and development firm. He was employed by Florida Power Corporation in 1964 as an Associate Engineer and progressed through several engineering levels to his present position. Mr. O'Brien is a member of the American Society of Mechanical Engineers and Tau Beta Pi, and is Registered Professional Engineer in the State of Florida. Mr. Robert B. McKnieht, Manager - Generation Cost Control and Project Planning, is a 1950 graduate of the University of Florida where he received the degree of Bachelor of Architecture. Mr. McKnight was employed by various consulting engineers and contractors in the capacity of field engineering on power plant construction including Burns & Roe, Inc., and Raymond Concrete Pile Company for a period of five years. Mr. McKnight has been employed by Florida Power Corporation for 9 the past 15 years and has acted in the capacity of Structural Con-struction Supervisor and Assistant Construction Superintendent. He had the responsibility of supervision of structural and civil construction and design review on eight major power plant installa-tions. During the past four years, as Senior Power Engineer, Architectural
& Structural Systems, Mr. McKnight has had the responsibility of architectural, structural, civil and bu.lding service system design of power plants together with the procurement of all equipment and materials and quality documentation.
In 1971 he was given the responsibility of organizing the Generation Cost Control & Project Planning Department and was named Manager. This department has the responsibility of estimating, cost management, scheduling, planning, contract administration, file systems, and document control for all projects including nuclear. He has attended nuclear training courses and is a member of the Building Research Institute. Mr. Michael H. Kleinman, Director-Quality Programs is a 1952 graduate of New York University with a Bachelor of Mechanical Engineering degree. Mr. Kleinman rejoined Florida Power Corporation in 1971. His previous employment with FPC had been in the Production ' Department as an h 5 0007 302 w, Am. 46 (8-22-75)
Assistant Production Engineer. In the interim he gained consider-able experience in power plant construction and ope. - Aon as a startup engineer and as a construction superintendent on both fossil and nuclear projects. During the past eight years he has been with United Engineers and Constructors Corporation where his responsibi-lities included such activities in the nuclear piping erection, directing startup activities, supervising the erection of all mechani-cal components and the activities of all mechanical craf ts, and the preparation of site construction procedures. 'fr. Kleinman's respon-sibilities in these areas provided him with extensive experience in implementing the requirements of Federal codes for reactor licensing. Mr. Kleinman is responsible for the Quality Programs for all power projects, including Crystal River Unit #3. Mr. Walter A. Szelistowski, Director-Nuclear Projects, is a 1956 graduate of the Milwaukee School of Engineering, where he received a BS degree in Electrical Engineering. Mr. Szelistowski has served for 13 years with Florida Power Corporation, advancing through various levels of construction engineering and electrical and control design engineering associated with new generating plants. Mr. Szelistowski has extensive experience in the design, operation and mainteaance of electrical and control systems and equipment, including eight years of practical electrical testing and maintenance prior to joining Florida Power Corporation. Mr. Szelistowski has completed the "MIT Water Cooled Nuclear Power Reactor Safety" course and the Company sponsored
~~" Nuclear Technology Indoctrination" course. He is a member of the Institute of Electrical and Electronic Engineers and the JCNPS/SC2 Committee.~~
Mr. John A. Hancock, Deputy Director-Nuclear Projects, is a graduate of North Carolina State University with a BS in Nuclear Physics, Catholic University of America with a MS in Nuclear Engineering, and has done post graduate work in nuclear engineering at the University of Florida. Mr. Hancock was a nuclear engineer in the U.S. Army Nuclear Power Program f rom 1963-1966 where he participated in essentially all aspects of reactor engineering and operation, including fuel loading. In 1966, Mr. Hancock became a faculty member of the Department of Nuclear Engineering of the University of Florida in charge of the research reactor facility and as an instructor. As required by his reactor supervisory responsibilities, he held an AEC Senior Reactor Operator's License and has trained personnel in reactor operation in preparation to obtaining operator's licenses. Mr. Hancock has been involved with all nuclear engineering aspects of the Crystal River Unit 3. He has coordinated the training program for the Crystal River nuclear plant of nuclear engineering at the University of South Florida and presently holds the position of Deputy Director, Nuclear Projects. g 6 0007 303
~~~ ~ Am. 46 (8-22-75)~~
1.5 TECHNICAL QUALIFICATIONS OF FLORIDA POWER CORPORATION'S CONSTRUCTION MANAGEMENT STAFF Mr. P. C. Henry, Director-System Construction, has the responsibility to plan, schedule and coordinate construction of new power generating facilities, including coordination of construction contractors, pre-operational testing and startup activities on new generating plants. Mr. Henry is a graduate of the University of Missouri (1954) with a Bachelor of Science Degree in Electrical Engineering and the University of South Florida (1968) with a Master of Engineering Degree. Mr. Henry joined Florida Power Corporation in 1963 and has held the position of System Distribution Engineer, Assistant Superintendent, Transmission and Distribution, Executive Assistant, Corporate Planning, Director System Engineering, Assistant to the Senior Vice President, and presently holds the position of Director-System Construction. Mr. Henry has completed the Nuclear Engineering Indoctrination Course (B&W), the U.S. Department of Health, Education and Welfare Management of Radiation Accidents, the Civil Defense Course in Radiological Monitoring Instructor Training, and the U.S. Army Industrial Defense Disaster Planning Course. Mr. Henry is presently or has been active in the Institute of Electrical and Electronic Engineers, Edison Electric Institute and Southeastern Electric Exchange and has served as an adjunct professor and lecturer for the College of Engineering at the University of 9 South Florida 1968. Mr. H. L. Bennett, Director - Generation Construction, is responsible for the management of generating plant construction and major undifications. Mr. Bennett has been with Florida Power Corporation since 1951 and has been responsible for all construction management activities on eight of Florida Power Corporation's most recent high pressure fossil fueled steam electric generating units. Mr. Bennett has a staff of graduate engineers working under his direction to provide the construction management and engineering skills, including quality control required during the course of power plant construction. With its experienced construction engineering and supervisory personnel, the Generation Construction Department manages all activities of construction workers employed by sub-contractors to Florida Power Corporation performing generating plant construction. A Florida Power Corporation owned or leased inventory of essential and modern construction equipment is kept in readiness, and the latest const- . tion techniques are employed, including computer processed scheduline. cost accounting and control. The Generation Construction Department is under the direction of the Director Generation Construction, who is responsible to the Director-Construction Management . 7 Am. 46 (R-22-75)
Mr. C. E. Jackson, Construction Superintendent for the Crystal River Plant Project received a Bachelor of Mechanical Engineering degree from the University of Florida in 1958. Mr. Jackson served as a Mechanical Project Engineer with E. I. DuPont's Savannah River Laboratory and as a Mechanical Development Engineer with Honeywell, Incorporated. Mr. Jackson was employed by Florida Power Corporation in 1966 as Mechanical Construction Supervisor with various other administrative duties. He was promoted to Construction Superintendent in 1971 and has management responsibility for all construction activities on the Crystal River Project, dr. Jackson is a member of the American Society of Mechanical Engineers. Mr. J. C. Hobbs, Jr., Manager-Generation Testing, for the Crystal l River Plant Project, received a Bachelor of Electrical Engineering degree from the University of Florida in 1963. Mr. Hobbs was employed from 1963-64 by General Nuclear Engineering Corporation, Dunedin, Florida, a subsidiary of Combustion Engineering Corporation. He served as a Staff Engineer for this nuclear research and development firm. Mr. Hobbs was employed by Florida Power Corporation in 1964 and progressed through various engineering and supervisory levels to his present position which has responsibility for management of the testing and startup activities on the Crystal River Project. Under the sponsorship of Florida Power Corporation, Mr. Hobbs returneo to the University of Florida and received a Bachelor of Nuc car Engineering degree, with honors in 1968. Mr. Hobbs is a member of Tau Beta Pi anc 2 Registered Profeisional Engineer in the State of Florida. Mr. C. Pachos, Superintendent - Architectural and Structural Systems, for the Crystal River Plant Project, received a Bachelor of Civil Engineering degree from New York University in 1953. Mr. ?achos also completed a correspondence course in Power Plant Engineerlag and attended Drexel Institute of Technology studying Naval Arc..itecture. Prior to his employment by Florida Power Corporation in 1;o8, Mr. Pachos was employed by Bechtel Corporation with assignments in d< sign and construction of both nuclear and fossil fueled generating plants. Mr. Pachos has management responsibility for architecturel and structural construction activities on the Crystal River Project. Mr. Pachos is a member of the American Concrete Institute.
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0007 305 8 Am. 46 (8-22-75)
1.6 TECHNICAL OUALIFICATIONS OF FLORIDA POWER CORPORATION'S OPERATING STAFF Mr. W. P. Stewart, Director-Power Production, is responsible for the operation of all power production facilities throughout our system including the Crystal River Nuclear Plant. This department has approximately 627 employees. In addition to the engineers assigned to the nuclear addition to the Crystal River Plant as outlined under Section 12 of the Final Safety Analysis Report (FSAR), an engineering staff supports the plant engineers throughout our system in their operation, maintenance and testing activities. Mr. W. P. Stewart graduated from West Virginia University in 1956 with a BS Degree in Mechanical Engineering. Following his graduation he served for seven years in various fossil fueled plants of the Ohio Power Company. He progressed through the various capacities of Test Engineer, Assistant Results Engineer, and Results Engineer. In this position he supervised a staff of engineers and technicians and was responsibic for the test and performance of the ascigned plant. He participated in the preoperational and startup activities of four 225 MW fossil fired units. He had extensive experience in the field of plant operation and performance. Since 1964, he served for a period of four years as the system Results Engineer for Florida Power Corporation. He initiated a systemwide program for test and monitoring of the performance of all of the generating units in the seven plants of the Company. This included the preparation of test precedures and manuals for the continuing monitoring of plant per-9 formance. His area of responsibility included seven Engineers, one Technician, and several Engineers-in-Training. Mr. Stewart's nuclear training includes a total of 56 weeks of classroom training, including Phase 1, 2, 3, 4, 5 and 6, as stated in Section 12.2 of the Crystal River J3 FSAR. In aidition, he has a total of 3.8 years of nuclear experience including design, manage-ment, startup, tes'.ing, and practical operating experience. This nuclear training and experience was gained by Mr. Stewart while he functioned as the Assistant Nuclear Plant Superintendent for Crystal River #3. He was later promoted to Plant Superintendent at the Ancloce fossil plant and in November, 1974, Mr. Stewart was promoted to his present position as Director-Power Production. Mr. J. Alberdi, Manager-Nuclear Operations, graduated f rom the University of Florida in 1958 with a BS Degree in Mechanical Engineering. Since his graduation he has served, for the past twelve years, in the Pruduction Department of FPC. Starting with the position of Associa.te Engineer, he has advanced through the positions of Assistant Production Engineer, Plant Mechanical Engineer, Assistant Plant Superintendent, and Nuslear Plant Superintendent. He has had extensive experience in the c eas of plant efficiency, instrumentation and control's, equipment p rformance, operation and maintenance, and supervision h 9 0007 306 Am. 46 (8-22-75)
of personnel. In his position of Assistant Plant Superintendent at the Bartow Plant he supervised 75 employees and was directly responsible for the operation and maintenance of a three unit plant with a capacity of 446 megawatts. He has taken numerous short courses associated with his work. He has completed the "MIT Water Cooled Nuclear Power Reactor Safety" course, the Company sponsored " Nuclear Technology Indoctrination" course and a 26 week
~~" Introduction to Nuclear Engineering" course. He is a member of the American Society of Mechanical Engineers and is a Registered Professional Engineer in the State of Florida.~~
Mr. G. P. Beatty, Nuclear Plant Superintendent, graduated from Clemson University in 1958 with a Bachelors Degree in Mechanical Engineering. As Nuclear Plant Superintendent, Mr. Beatty is responsible for the overall operation of the Crystal River Nuclear Plant. Following graduation, Mr. Beatty gained eight years experience in the startup, operation, and maintenance of f ossil plants, having served as plant engineer, maintenance supervisor and operations supervisor. From 1966 to 1972, as Superintendent of Carolina Power & Light Company's H. B. Robinson Nuclear Plant, Mr. Beatty gained nuclear experience in the areas engineering, quality, construction, startup, testing, operations, and safety. Mr. Beatty joined Florida Power Corporation on July 10, 1972, and has held the position of General Plant Super-intendent prior to his present position as Nuclear Plant Superintendent. 9 Mr. Paul F. McKee, Assistant Nuclear Plant Superintendent, graduated from the University of Florida in 1964 with a Bachelor of Mechanical Engineering Degree and in 1969 with a Bachelor of Nuclear Engineering Sciences Degree. Since January, 1965, he has served in the Production Department of Florida Power Corporation, starting with the position of Associate Engineer-Results, Engineer-Results, Plant Engineer. Operations Engineer, and was promoted to Assistant Plant Superintendent in April, 1974. He has had extensive experience in the area of plant performance, instrumentation and controls, equipment performance, operation and maintenance, and supervision of personnel. He was active in the startup testing activities of the Florida Power Corporation's fossil unit, Crystal River No. 1 (360 MWe). In his position of Plant Engineer at the Turner Plant, he was responsible for the maintenance and operation of a four unit plant with a capacity of 216 MWe. At the time of Crystal River Unit #3 initial core loading, he will have had ten years of responsible power plant experience, five years of which are nuclear power plant experience. He will have acquired the experience and satisf actorily completed an AEC - approved training program which utilizes a complete and accurate nuclear power plant simulator as part of the program required for examination by the AEC for a Senior Reactor Operator's License and will take the examina-tion. 0007 307 Am. 46 (8-22-75)
Other Operating Plant Key Personnel, The Technical qualifications of other key operating plant engineering and supporing personnel are detailed under Appendix 12A of the Final Safety Analysis Report (FSAR) filed March 9,1973 as Amendment No. 24 to the Application of Licenses, Docket No. 50-302. 1.7 TRAINING To prepare selected plant personnel for obtaining NRC operator licenses prior to initial startup and operation and to increase the technical competence of plant personnel in the nuclear area, Florida Power Corp-oration has implemented a comprehensive training program including both academic and operational training in a scheduled sequence such as to bring the trainee from his initial capability to that of a qualified Nuclear Plant staff member. This training program is outlined in detail in Section 12 of the Final Safety Analysis Report (FSAR).
2. THE BABCOCK & WILCOX COMPANY TECHNICAL QUALIFICATIONS 2.1 GENERAL The Babcock & Wilcox Company was founded as a partnership in 1867 and organized as a corporation in 1881. B&W is a widely diversified company serving the electric utility, transportation, steel, petroleum, chemical, pulp and paper, and machinery industries, as well as one of the world's leading suppliers of specialty steels. B&W is one of the leading suppliers of components for the Nuclear Navy.
9 The Company ranks as one of the larger American industrial enterprises with corporate total current assets of over $262,000,000 at the end of 1966. Orders received in 1966 exceeded $840,000,000 and 1966 income before taxes and minority interests was over $62,400,000. The backlog at the end of 1966 was more than S915,000,000. B&W employs over 30,000 persons in f acilities throughout the United States, Canada, Great Brirain, and Sweden. Of this total, over 1,000 are technical and scientific personnel working in the nuclear power activities. As the world's largest manufacturer of steam generating equipment, B&W is a recognized leader in the American Industrial family. The Company has contributed materially to the development of fundamental materials data, heat transfer data, manufacturing and erection processes, and inspection techniques used in the steam generating equipment industry. As an extension of its manufacturing functions, the Company is a major field assembler of steam generating equipment in the United States. In this capacity, the Company has assembled more than one-half of the equipment manufactured by itself in the past 100 years by direct employment of field construction labor. The Company's field construction arganization is currently engaged in the performance of construction labor contracts involving approximately $400,000,000 of equipment of its own manufacture. Its field construction force includes about 200 permanent S employees engaged in the management of construction projects and approximately 4,000 employees of the various construction labor crafts. 0007 308 10a Am. 46 (8-22-75)
2.2 DIVISIONS AND SUBSIDIARIES 9 The major Divisions and Subsidiaries of the Company located in the United States, and their products, include:
a. Boiler Division The Boiler Divis ton designs, manufactures, field assemblies, and services nuclear and conventional steam generating syste=s and equipment and heavy pressure vessel equipment for the utility, petrochemical, and other industries. The Division designs and manufactures reactor vessels, steam generators and pressurizers for the nuclear Navy, for the USAEC, and for commercial nuclear power plants. The Division also manufacturers reactor cores for commercial nuclear power plants. A single autonomous quality control organization regulates all of the Division's manufacturing processes as well as the field assembly functions of its construction organization.

b. Tubular Products Division The Tubular Products Division is one of the world's leading suppliers of specialty steel tubing, extrusions, and fittings.

c. Refractories Division The Refractories Division mines raw material and manufactures a complete line of refractory materials and high temperature 9 d.
insulation for use in the utility, glassmaking, metals manufacturing, and space industries. Automated Machine Division The Automated Machine Division furnishes the automotive and related industries with highly automated production machinery,
e. Atomic Energv Division The Atomic Energy Division conducts development programs on advanced nuclear power plant concepts, systems designs, and nuclear fuel management programs.

f. Resesrch and Development Division The Research and Development Division conducts research, development, and testing programs for the other Divisions and Subsidiaries of the Company. Development programs are also conducted under contract in the areas of heat transfer, metallurgy, nuclear fuels development, critical experiments, and radiochemistry programs. The Division's test reactor (BAWTR) and hot cell facilities are utilized for irradiation testing, isotope production, and irradiation encapsulation services.
}
~~O 11 Am. 31 (A-31-73)~~
g. Bailey Meter Company Bailey Meter Company designs and manufactures instruments, controls, and computers for power generation, industrial processes, and naval and merchant vessels. Bailey also produces a full line of nuclear instrumentation, incore instrumentation, safety systems, and process instrumentation, for use in nuclear power plants,

h. Diamond Power Specialty Company Diamond Power disigns and manufactures boiler cleaning equipment, special gauges, industrial television systems, stud tensioners, and reactor control rod drive mechanisms.

1. Babcock & Wilcox of Canada, Limited This organization is a major Canadian supplier of steam generators, pumps, and process equipment for a variety of uses in the utility, pulp and paper, and chemical industries.
It is also a major Canadian supplier of steam generators for nuclear power plants. 2.3 NUCLEAR EXPERIENCE B&W's participation in the development of nuclear power dates O f rom the Manhattan project. B&W's nuclear activities are broad and include applied research to develop fundamental data, design and manuf acture of nuclear systems ce=ponents, and design and manufacture of complete nuclear steam generating systems. The major activities and accomplishments in the water-cooled and moderated reactor field are summarized below,
~~a. Indian Point No. 1 (Consolidated Edison Company of New York, Inc)~~
In 1955, B&W contracted for the development, design, and supply of the nuclear str a supply system, reactor core, and related control system fo Jonsolidated Edison's Indian Point No. 1 Unit. Indian Point No. 1 is a light water-cooled and moderated precsurized water reactor system rated at 585,000 thermal kilowatts. The unit includes a separately fired superheater which heats steam from the reactor system before introduction into a 275,000 kilowatt electric generator. Indian Point No. 1 went into commercial operation in January, 1963.
~~b. NS Savannah (USAEC)~~
B&W was awarded a contract in 1957 to develop, design, and supply the entire propulsion plant for the NS Savannah. B&W's initial contract scope included, in addition to the design and supply of equipment and reactor core, the responsibility for safety analysis work, supervision of propulsion plant equipment erection, crew G ~0007 310 12 Am. 31 (8-31-73)
training and advice in fuel loading, testing, and operation. Through later auxillar= contracts, B&W Personnel developed and directed the propulsion testing, startup, and initial operational programs. B&W has continued to supply services in the areas of crew training, upgrading, and operation. The NS Savannah went into commercial operation in May,1962 and has been in continuous service since except for a one-year enforced outage resulting from a labor dispute. The Savannah nuclear steam supply system is a light water cooled and moderated pressurized water plant rated at 80,000 thermal kilowatts.
~~c. Advanced Test Reactor (Ebasco/USAEC)~~
B&W was retained in 1960 as the nuclear subcontractor to Ebasco Services, Incorporated, for the design of the Advanced Test Reactor. B&W's final scope of work included the design of the nuclear por. tion of the reactor complex including the reactor core, critical experiments, control rod drives, reactor vessel internals, and fuel handling tools. In addition, B&W was responsible for supervising the research and development programs including corrosion testing, fuel assembly development and heat transfer testing, and the supply of the reactor control rod drive system, as well as the design of inpile test loops. The Advanced Test Reactor is a light water-cooled and moderated 9 d. high flux test reactor rated at 250,000 thermal kilowatts. Otto Hahn Poser Plant B&W received in 1960, through its German licensee, deutsche Babcock
& Wilcox, a contract to provide technical and design consultation and assistance on the nuclear steam supply system and reactor core for the German Nuclear Ship, " Otto Hahn." The reactor is an advanced, light water-cooled and moderated, pressurized water reactor in which the core, steam generator, primary pumps, and piping are integrated into a single pressure vessel similar to B&W's Consolidated Nuclear Steam Generator (CNSG). The reactor is rated at 38,000 thermal kilowatts.
~~e. Oconee Nuclear Station Units 1, 2, and 3 (Duke Power Company)~~
B&W has a contract to supply three pressurized water nuclear steam supply systems. Each system is rated at 2,452 MRt for a net electrical output of 839 MR. The first unit is scheduled for service in May,1971, the second in May,1972, and the third in 1973. Each reactor uses chemical shim and control rods for reactivity control and generates steam with a small amount of superheat in once-through steam generators. Jersey Central Power and Light Company f. 0007 311 O B&W will supply one pressurized water nuclear steam supply system for installation at an undisclosed site. Initial operation is scheduled for 1973. The unit is rated at approximately 800 MWe (ner) and will be a near duplicate of the units being supplied to 13 Am. 31 (8-31-73)
the Duke Power Company and the Metropolitan Edison Company.
g. Metropolitan Edison Company B&W will supply one pressurized water nuclear steam supply system for installation at the Three Mile Island Station (near Harrisburg, Pennsylvania). Initial operation is scheduled for 1971. The unit is rated at approximately 820 MWe (net) and will be a near-duplicate of the units to be supplied for Duke Power Company and Jersey Central Power and Light Company,

h. Middle South Utilities, Inc.
B&W will supply one pressurized water nuclear steam supply system for installation at an undisclosed site. Initial operation is scheduled for 1972. The unit is rated at approximately 840 MWe and will be a near-duplicate of the Duke, Jersey Central, Met Ed, and Florida Power units.
i. Research Reactors B&W has designed and supplied seven research and test reactors ranging in size from 1,000 to 6,000 thermal kilowatts.

j. Research and Development B&W's research and development and study efforts are significant 9 and range from development of basic physics and materials data through the development of complete reactor systtens including a substantial effort in advanced converter and breeder reactor systems.
~~2.4. ORGANIZATION B&W's Boiler Division will execute the Florida Power Corporation contract with active participation by the other Divisions and Subsidiaries.~~
3. GILBERT ASSOCIATES - TECHNICAL QUALIFICATIONS 3.1 CENERAL Gilbert Associates, Inc. , engineers end consultants, was organized in 1906 and has its main office at Reading, Pennsylvania. Principal offices are also located at Philadelphia, Pittsburgh, and New York City.
Originally known as W. S. Barstow and Company, the corporate name was changed to E. M. Gilbert Engineering Corporation in 1933; in 1942 the corporate structure was revised to provide for complete exployee ownership and the name became Gilbert Associates, Inc. Throughout the past 60 years Gilbert Associates has progressively grown in size and in scone of activity. The collective experience and apabilities of the firm offer cor.plete consulting aad engineering services in both investor-evned utilities and to general industry in such diverse G fields as: nuclear and conventional pouer generctien; transmission, 0007 312 14 Jo. 31 (8-31-73)
substation, and distribution systems; economic engineering and management consulting . service; steel making and processing; cement and minerals processing; chemical and general industrial facilities; water desalination plants; institutional and ccamercial installations; environmental and solid waste treatment; and water production projects. Projects undertaken have ranged from large electric power generating plants and production facilities to small industrial boiler plants and allied service facilities. Since 1942 Gilbert Associates has been made responsible for the design of over 110 thermal generating units, both fossil and nuclear power, representing more than 16,000,000 kilowatts of new generating capacity. Gilbert's experience includes one of the first reheat units, one of the first once-through boiler units, and one of the first supercritical steam pressure units. Designs range in ratings up to 90,000 kw in stations of varied complexities--mine-mouth, closed cycle cooling tower, base-load, peaking, and others. At present Gilbert has over 8,000,000 kw of generation under design. 3.2 NUCLEAR EXPERIENCE Since 1950 Gilbert has played an active and important role in the develop-ment of nuclear energy for private utilities, industry, and governmental agencies. Gilbert projects include complete programs of nuclear power development involving analysis of sites, complete evaluations of proposals, contract and fuel program assistance, preparation of license applications, and complete plant design and procurement. The following is a chronological summary of some of the significant nuclear projects undertaken by Gilbert: 1955 - Design proposal for South Carolina Electric & Gas Company la negotiation of possible dimonstration pressurized water reactor (later Shippingport) sponsored by U. S. Atomic Energy Commission. 1956 - Study and evaluation of 60 W e pressurized water reactor plant for Manila Electric Company. 1957 - Detailed design study for a 20 We pressurized water reactor plant for overseas application for Army Reactors Branch of U. S. Atomic Energy Commission. 1958 - Preliminary specifications, designs and cost estimates, and proposal evaluation for 5 to 10 We boiling and pressurized water reactors for General Public Utilities Corporation. 1958 - Detailed study of application of water reactors (5 to 70 We) in remote locations for Department of The Air Force. 1959 - Design, and construction management of 20 W t Saxton Experimental Power Reactor plant as subcontractor to Westinghouse for General Public Utilities Corporation. , 15 Am. 31 (8-31-73)
1960 - Detailed study of nuclear power reliability involving five operating reactors for Department of the Air Force. The SM-1 at Fort Belvoir, SL-1 in Idaho, Shippingport, EBWR at Argonne, and the Vallecitos BWR have been reviewed, and the reliability of the components and systems in each plant evaluated. 1961 - Fallout shelter surveys in eastern Pennsylvania for Department of Defense. 1962 - Preliminary design and cost estimate for SPX reactor as part of Supercritical, Once-Through Tube Reactor (SCOTT-R) program for Westinghouse Electric Corporation. 1963 - For Atomics International development of original concept, preliminary design and cost estimates for 16') MWt organic reactor to provide power and steam to Packaging Corporation of American Mill. 1963 - Engineering and economic evaluations for 600 MWe Oyster Creek Turnkey proposed designs for Jersey Central Power and Light Company. 1963 - Development of a nuclear power reactor containment design concept for plants in close proximity to large population centers. 1963 - Development of system planning procedures which indicate O capacity addition patterns for most economical power generation, thus broadening applicability of nuclear power. 1963 - Preliminary plant designs and cost estimates for 170 MWe and 260 MWe gas-cooled nuclear power plants for Rochester gas and Electric Corporation. 1964 - Overall plant design and engineering for 470 MWe Ginna nuclear power plant, as subcontractor to Westinghouse, for Rochester Gas and Electric Carporation. 1964 - Design for electrical aspects of Saxton Superheat Loop experimental installation for Westinghouse Electric Corporation. 1965 - Development of a fuel cycle computer program which will estimate fuel cycle costs over long term periods and caluclate isotope buildup in the core. 1965 - Design study and cost evaluation for converting Saxton into a fast-breeder prototype for Westinghouse Electric Corporation. 16 Am. 31 (8-31-73)
1965 - Pioneering the design of containment vessels by employing new concepts of design and construction. The use of post-tensioned concrete combined with hinged joints and pre-stressed rock-anchors leads to an accurate prediction of the load-carrying capacity of the vessels and consequently to minimum construction costs. The aseismic design of the containment vessel, and of equipment and piping, will be based upon a dynamic analysis of the structure-soils system. 1966 - Plant design and engineering as subcontractor to Westinghouse for the 340 We Milhama plant, Kansai Electic Power Company, Japan. Scheduled for completion in July 1970, the plant is locsted on Tsruga Peninsula on the mai'n Japanese Island of lionshu. Gilbert will provide design engineering for all of the nuclear steam supply systems and structures. 1966 - Site evaluation specification and evaluation of proposals laading to the design of large nuclear power plants (500 We to 1000 We) for four major eastern utilities: Metropolitan Edison Co., Florida Power Corporation, Baltimore Gas and Electric Co. , and Pennsylvania Power & Ligh: Co. 1966 - Architect-engineer for an 840 We nuclear unit for the Metropolitan Edison Company. Preliminary studies, over a period of more than two years, indicated an economic advantage O for a nuclear unit over a fossil fuel unit. During the studies numerrous sites were investigated throughout the area served by the utility. The results of competitive bidding produced a unit utilizing a pressurized water reactor and a non-reheat turbine generator. 1967 - Architect-engineer and consultant to Florida Power Corporation for two We nuclear units. Complete evaluation'of three possible sites was necessary, and a complete program of subsurface investigation and procedures was instituted at the selected site. Evaluation of total plant equipment bids resulted in pressurized water reactors with reheat turbines. The site involves installation of two nuclear units at a plant which will have two existing coal fired units on a coastal location. 3.3 ORGANIZATION The Gilbert Associates organization incides nearly 700 employees with a complete staff of engineers, draftsmen, and many technical specialists. Included in the total staff are over 300 engineers and technical specialists, and 180 draftsmen. This incit; des members of management, professional personnel, and individuals in other specialized fields. Responsibility for engineering and design of nuclear power plants is centered in the Utilities Division of the Company. Every nuclear 9 project is assigned to a project manager, who is selected from a staff of engineers having an average of about 15 years service with Gilbert Associates. Through this divisional control, the production function of the project is carried through to completion. , . .
~~~0007 315 17 Am. 31 (8-31-73)~~
The engineering disciplines such as nuclear, mechanical, electrical, civil, structural, architectural, environmental engineering, etc., are grouped into departments and provide the technical resource to the proj ect . Each department is managed by a chief engineer, who provides technical and administrative responsibility to the personnel assigned to the various projects. Additional necessary support to the project is provided from other service departments, including: drafting, estimating, specifications, legal, accounting, purchasing, expediting, etc. 3.4
~~SUMMARY~~
~~In view of the above, Gilbert Associates, Inc. is qualified and capable of discharging its responsibilities to the project for which this license application is made.~~
4. TECHNICAL OUALIFICATIONS OF J. A. JONES CONSTRUCTION COMPANY 4.1 General The J. A. Jones Construction Company was founded in 1894 with its principal office located in Charlotte, North Carolina. This Company, one of the largest construction companies in the world, has always welcomed and met the challenge of difficult and unusual projects with G a highly skilled managerial and technical staff, modern engineering techniques, and the best construction equipment available. Throughout the past 74 years, J. A. Jones' reputation for integrity, quality of work and speed of construction is unsurpassed. Projects which the J. A. Jones Company have undertaken range from the largest power plants, chemical plants, and ordinance works to textile mills and fiber plants.
The list also includes building of the gaseous diffusion plant at Oak Ridge and a considerable portion of the Hanford Atomic Energy Plant in Richland, Washington. The Company presently has assets of over 48 million dollars, a major portion of which is in heavy construction machinery and equipment, with projects underway throughout the World. A subsidiary company, Livsey & Co. , Inc. , functioning as the Mecharical Division of the J. A. Jones Construction Co., is presently doing the piping and equipment erection for Florida Power Corporation's 500 MW coal fired Unit #2 at its Crystal River Plant, the same location at which the nuclear units will be constructed. 4.2 NUCLEAR EXPERIENCE It was mentioned above that J. A. Jones Construction Co. built the Atomic Energy Commission's gaseous diffusion plant at Oak Ridge which covered some 600 acres and contains 5 large prc:ess buildings, in addition to 70 other related buildings. The plant consists of two units, each 1 mile long and 4 stories high. Other significant nuclear work consists of the J. A. Jones - Guy Atkinson 9 joint work done at the Atomic Energy Co= mission Hanford Works under the General Electric Company's prime contract. With the recent change in management for the Atomic Energy Commission in the Hanford Project, 18 Am. 31 (8-31-73 007 316
e J. A. Jones is still presently functioning as a contractor for the operating company. As a part of their work presently going on at this project, J. A. Jones has established an exotic metals pipe and tank fabricating shop with complete acceptance of welding techniques and procedures by the Atomic Energy Commission of those procedures developed in this shop. Special construction and maintenance techniques were developed to meet ever changing nuclear conditions. We developed and qualified special welding procedures for welding within Radiation Zones. Qualified welders for all on-site contractors maintained special fabrication shops for exotic metal processes, including aluminum, stainless steel, boron clad steel and titanium. Many tight production schedules were maintained due primarily to this capability. The magnitude and scope of this activity can be judged by the fact that the employment cycle has varied from a maxiumum of 1500 to a miniumum of 450 during the span of this contract. The construction activities on the Hanover Project during this period include: 100-N - Completion of Power Generating and Production Reactor. 100-DR - Additional Water Facilities.
~~-100-DR - Production Reactor.~~
100-H - Production Reactor. 100-H - Area Support Buildings. 100-Areas - Increased Production Facilities. 200-W - Redox Separation Facilities. 200-W - Tank Farm Modification. 9 200-W 200-E 200-E
~~- Plutonium Separation Facilities. - Renovation Bismuth Phosphate Facilities. - Strontium Processing Facilities.~~
300-Area - Fuel Fabrication Facilities. 300-Area - Completion of Plutonium Re-Cycle test reactor. 300-Area - High Temperature Lattice Reactor The above jobs consisted primarily of building complete facility from initial groundbreaking to final acceptance by the operating contractor. Significant, however, is the completion of the 100-N New Production and Power Generating Facilities of an 800 plus MWe Resctor currently being used for the dual purpose of Plutonium Production and the generation of
~
electrical power for the Washington Public Power Supply System. Final completion of construction items, design modification and pre-operational testing were included in this phase of work. The Jones Company was asked by the Atomic Energy Commission to effect completion of the Plutonium Re-cycle Test Reactor in the 300 Area. This work consisted of completion of the Calentria or Process Vessel involving special welding techniques and e:: acting tolerances. The work was success-fully completed in our shops in advance of the scheduled completion date and delivered to the field. All structural, electrical, mechanical and instrumentation work was completed on this facility, pre-operational and final acceptance tests were completed. Our forces assisted on changes and punch list items until the reactor attained criticality, h ~ 0007 317 19 Am. 31 (8-31-73)
Due to the nature of the work involved on past nuclear work, definite 9 and rigid quality control procedures were initiated and maintained. Some of the controls and procedures were peculiar to the conditions encountered in radiation zones and included Radiation Protection Manuals, Mechanical, Electrical and Structural Standards not directly applicable to normal construction activities. It is quite significant to note that the J. A. Jones Construction Co. and its subsidiary, Livsey & Co. , have been selected by the General Electric Company to take over the completion of the work on the Jersey Central Pwer & Light, Oyster Creek No. 1 Nuclear Project. This particular plant was 12 months or more 1-hind schedule when the J. A. Jones Construction Co. personnel uwved on the project to perform the work consisting of construction labor in support of pre-operational testing, nuclear fuel loading and startup, modification and repair of existing facilities and repairs or modification work necessary to effect the startup of the power plant. This is a major undertaking to salvage a construction schedule and this project is rapidly recover-ing toward a start-up in the next few months. J. A. Jones has consistently ranked in the top 20 contractors by size in annual survey by the " Engineering News-Record." Our completed work over the past five years has averaged $150 million per year. The average employment by J. A. Jones ranges from 8,000 to 10,000 employees. Also, an equal number of construction workers are usually employed by our sub-contractors and supervised by J. A. Jones. There are 1107 employees which are considered to be permanent. The J. A. Jones Constructior. Company has for a number of years maintained an enviable safety record. Among achievements in accident prevention, we received the following awards from the United States Atomic Energy Commission: Award of Honor 1957, 1963, 1964. Award of Merit 1954, 1957, 1965. General Managers Commendation 1957, 1960. 4.3 SLMMARY J. A. Jones Construction Company is qualified to perform the construction work of the General Contractor including Mechanical-Piping installations required on Crystal River Unit # 3.
~~5. E. C. ERNST, INC. - TECHNICAL QUALIFICATIONS 5.1 GENERAL The E. C. Ernst Corporation was established in 1915 and incorporated in 1930, with its principal office located in Washington, D. C.~~
E . C . E rns t , Inc. is a national organization with over 400 projects active at any one time and employing over 70 engineers and estimators in a payroll of more than 2400. E. C. Ernst, Inc. enjoys the reputation $ 20 Am. 31 (8-31-73) 0007 318
throughout the electrical construction industry for their quality, integrity and overall customer service. E. C. Ernst experience is very diversified and they have proven they are capable of performing any electrical construction from heavy industrial to institutional, commercial and public works projects. Some of the electrical projects that they have handled are as follows: The Hampton Roads Bridge Tunnel, the Lower Chesapeake Bay Bridge Tunnel, the Public Auditorium of Pittsburgh, Pennsylvania, the Owens Illinois Glass Plant, Atlanta, Ga., the Veteran's Administration Hospital in Washington, D .., the Nuclear Research Center for the Georgia Institute of Technology, the Experimental Nuclear Reactor at Saxton, Pennsylvania, and some of the largest power plants in the country. E. C. Ernst, Inc. did the electrical construction work for Florida Power Corporation's 400 MW coal fired Unit #1 at its Crystal River Plant. They are presently engaged in the electrical construction work of its 500 MW coal fired Unit #2 addition, which is - at the same location at which the nuclear units will be constructed. 5.2 NUCLEAR EXPERIENCE E. C. Erns t , Inc. did the electrical installation for the Nuclear Research Conter at the Georgia Institute Technology in Atlanta, Georgia. This reactor wr.s a heterogeneous heavy water moderated and cooled machine, fueled with highly enriched plantes of aluminum uranium alloy. A variety of experimental facilities was incorporated in the reactor design supplemented by 24,000 sq. ft. of laboratory and office space for analysis and study. E. C. Ernst also engaged in the electrical installation for the experimental nuclear reactor at Saxton, Pennsylvania. 5.3
~~SUMMARY~~
~~E. C. Ernst, Inc. is qualified to perform the electrical construction work required on Crystal River Unit 3~~
~~'0007 319 g 21 im. 31 c8-31-73)~~
~~9 0 a a~~
~~.=.~~
0007 '20 0 i F G
Exhibit 7 AGREE 14ENT LIMITING ACCESS TO RESTRICTED DATA Florida Power Corporation as part of its Application for licenses for its Crystal River Plant, Units 3 & h, hereby agrees that it vill not permit any individual to have access to Restricted Data until the Civil Service Cc==ission shall have made an investigaticn and report to the Atemic Energy Cc=ission on the character, associations, and loyalty of such in-dividual, and the Atomic Energy Cc= mission shall have determined that per-
~~=itting such person to have access to Restricted Data vill not endanger the cccmon defense and security.~~
O This 9th day of August, 1967. FLORIDA POWER CORPORATION N By . t% Vice President By Do Nuclear Project Manager O .
~~- 0'007 ?21~ . - .}}~~

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