ML20210U590

Opposes Merger of Bec Energy & Commonwealth Energy Sys in Commonwealth of Massachusetts.Expresses Skepticism Re Claim by Companies That Consumers Will Benefit from Proposed Consolidation & four-year Freeze in Base Rates

ML20210U590
Person / Time
Site:	Pilgrim
Issue date:	06/25/1999
From:	Murray T MASSACHUSETTS, COMMONWEALTH OF
To:	Collins S NRC (Affiliation Not Assigned)
Shared Package
ML20210U581	List: ML20210U576 ML20210U590
References
NUDOCS 9908200167
Download: ML20210U590 (2)

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e COMMONWEALTH OF MASSACHUSETTS l

MASSACHUSETTS SENATE STATE HOUSE. BOSTON 02133 1053 i

SENATOR THERESE MURRAY COMMITTEES:

PLYMOUTH AND DARNSTABLE HUMAN SERVICES AND ELDERLV DISTRICT AFFAIRS (CHI 1R)

ROOM 511 C TRANSPORTATION (VICE CHAIR)

TEL, (617) 722 1330 June 25,1999 WAYS AND MEANS STEERING AND POLICY FAX (617) 722 1072 HEALTH CARE FEDERAL FINANCIAL ASSISTANCE Mr. Samuel J. Collins, Director Office of Nuclear Reactor Regulation United States Nuclear Regulatory Commission Washington, D.C. 20555-0001

Dear Mr. Collins:

I oppose the merger of BEC Energy and Commonwealth Energy System in the Commonwealth of Massachusetts. As you are aware BEC Energy has proposed to purchase the Commonwealth Energy System and integrate the existing corporate and operations support functions. BEC serves 633,000 customers in Boston and 39 other communities, and through an unregulatedjoint venture with RCN Communications has begun offering cable, Internet, and telephone services locally. Boston Edison, a subsidiary of BEC Energy, owns the Pilgrim nucleaJr ower plant in I l inEh2theplant

~~i inUiGisold before th'e BEC Energy / Commonwealth Energy merger can proceed.~ It is

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"Tiiy ihidirstandiditliiiiBdisorfisTiitTMFocess of sellingtlieJJailfiGriter yYucTear Inc.

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~6fNeiOrleans, Louisiini.~CEEnergyTias 37T,(i(To electric customers m areas

" Tnc7uding cam 6ndge, CHpe Cod, New Bedford and Plymouth, and 239,000 ComGas customers in 51 eastern Massachusetts communities. It is my responsibility to protect these consumers.

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

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

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

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

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i Enclosure 9908200167 990818 PDR ADOCK 05000293 PDR p

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

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

Th k ypu for y time and consideration.

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