ML19312B817

Statement of Util as to Available Sources of Funds to Satisfy Possible Liability Not Exceeding $30 Million

ML19312B817
Person / Time
Site:	Oconee
Issue date:	03/15/1978
From:	Stimart W DUKE POWER CO.
To:
Shared Package
ML19312B770	List: ML19312B769 ML19312B817
References
NUDOCS 7911190654
Download: ML19312B817 (1)

Text

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Statcm nt of Duke Powar Compa.y aI to

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Available Sources of Funds to Satisfy

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a Possible Liability Not Exceeding $30

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Millicn Pursuant to the Provisions of 10 CFR 140.21 Pursuant to the requirements of Section 140.21 of the Nuclear Regulatory Commission regulations in 10 CFP Part 140, Duke Power Company (the Company) herein submits the following Annual Report to Stockholders, annual certified fir.ancial statement, and its current Financial Forecast as evidence of financial ability of guarantee of payment of deferred premiums in the amount of $10 million for each reactor it is licensed to operate. I certify that the financial forecasts, which include information relating to cash flow, were prepared in conformity with generally account-ing practices applied on a basis consistent with the accompanying financial sta*cments.

As o; December 31, 1977, the Company has unused bank lanes of credit with 80 commercial banks amounting to $86 million which such banks have total legal lending limits of approxomately $1.5 billion.

Further, the Company also has the option to sell commercial paper up to a limit of 25% of any prior 12 months electric revenues as an alternative to using its bank lines of credit, another $312 million source of credit. Either of these sources would, in my opinion, be available as a source of funds to satisfy the assess-ment of retrospective premiums not exceeding $30 million.

It is the Company's opinion that it can meet its guarantee of payments of deferred premiums currently amounting to $30 million as required by Nuclear Regulatory Commission regulations, partic-ularly in view of the relative insignificance of this amount to its total available cash and credit. Additionally, funds could be generated by the deferral of certain construction. However, I do not believe that such deferral would be necessary.

DUKE POWER COMPANY (COMPANY)

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By Date: March 15, 1978 W. R. ~'timart, S Controller Subscribed a sworn to before me this /A' _ af of March, 1978.

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Notary Public My Commission expires: f-/4 - 7 9 0

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