ML19329C975

Affidavit Re DOJ 751010 Document Request.Ta Kostanski 711230 Ltr to FPC W/Encls Omitted from Util Document Production & Is Forwarded

ML19329C975
Person / Time
Site:	Davis Besse, Perry
Issue date:	10/20/1975
From:	Klee R, Klee R FULLER & HENRY, TOLEDO EDISON CO.
To:
Shared Package
ML19329C973	List: ML19329C970 ML19329C974 ML19329C975 ML19329C976 ML19329C979 ML19329C980 ML19329C981
References
NUDOCS 8002200947
Download: ML19329C975 (5)

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UNITED STATEG OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSIMG BOARD In the Matter of )

) Docket No. 50-346A The Toledo Edison Company )

The Clevcland Electric )

Illuminating Company ) Docket Nos. 50-440A (Davis-Besse Nuclear Power ) and 50-441A Station) )

)

The Cleveland Electric ) Docket Nos. 50-500A Illuminating Company, et al. ) and 50-501A (Perry Plant, Units 1 and 2) )

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The Toledo Edison Company, et al.)

) as (Davis-Besse Nuclear Powcr ,,

Station, Units 2 and 3) ) S l/ occum usaac g

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AFFIDAVIT OCT 2t 875 P 5

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g STATE OF OHIO ) z,g ,es

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COUNTY OF LUCAS )

ROGER PAUL KLEE, being first duly sworn, deposes and says that at all times material and relevant hereto he was an attorney _ employed by *he law firm of Fuller, Henry, Hodge &

Snyder, which firm is counsel for Applicant Toledo Edison Company

(" Applicant") , and he has been duly authorized by said Applicant to make this affidavit in the above-captioned proceeding'.

Affiant further says that he has diligently attempted to ascertain whether the documents listed below, which the Dc-

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.. dircovery requests le propounded in tri5 abovc-captioned pro-

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coeding, were produced by Applicant.

1. Lotter from A. N. Prentico, OP, to Davis, Henry and others, dated February 28, 1967.

2. Letter from Charles E. Flahie to Lawrenco McNealey, C&SOE, dated December 27, 1968.

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3. Letter from T. A. Kostanski to Morris R.

Fitzgerald, Chief of North Central Region, Division of Audit, Federal Power Commission, dated December 30, 1971, with enclosurcs.

4. Speech given by Mr. W. H. Schwalbert at the Edison Electric Institute meeting held in January 1968.

5. Letter from Dewey G. Ries to John K.

Davis, dated November 20, 1965.

6 .- Letter from John K. Davis to Dewey G.

Ries, dated November 23, 1965.

7. Minutes taken by Stratman Cooke of meeting held on June 24, 1971 between Messrs. Cooke and Keck of Toledo Edison, Mr. Robert Badner of the Rural Electri-fication Administration, Mr. Joseph Wigham of Southern Engineering Company and representatives of the Southeastern Michigan Rural Electric Cooperative.

Affiant further says that, after a diligent examination of the files which Applicant provided or made available to affiant or persons under his direct supervision, he was unable to locate documents numbered 1, 2, 4, 5, and 6 above, morcover, an inquiry of'the appropriate Company personnel confirms that none of said documents have been removed from said files since the l

1 date of-the first production request propounded by the Depart-

Affiant turther says that said exama...ation shows that document Number 7 above was not produced because it is not

.within the scope of any of the Department's requests.

Affiant further says that said examination shows that document Number 3 above was inadvertently omitted from Applicant's document production and a copy is attached hereto.

Further af fiant sayeth not.

• jdf c.W G Roger Paul Klee Sworn to before me and subscribed in my presence this 20th day of October, 1975.

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Notary Public i MICHAEL M. GR! LEY

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At!ctncy . ct - Lc'.y Notary Fublic, S!ct: of 0:. a My Commis::cn H:: Na Ext.irci.cn ::.::

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'= m'mm TOLEDO T. A. KosuNsxs c ,v an December 30, 1971 cu

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h Mr. Morris R. Fitzgerald [ TM Chief of North Ccr. tral Region tp

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OC$ 2t,j C Federal Power Com::,ission 441 "G" Street, N.W. f.'"'" -

Washington, D.C. 20426 ,4 #"

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Dear Mr. Fitzgerald:

At our initial meeting with Mr. Litke on June 1, 1970, we agreed to' complete our Original Cost Study of Electric Properties before the end of this year. .

Enclosed are three copies of the Original Cost Statement of Electric Properties for The Toledo Edison Company as of December 31, 1969.

The Company prope':es to reclassify the Electric Plant Account at crigir.a1 coat by recording the following entry as of December 31, 1971 on its book of accounts:

Debit: Accumulated Provision for Depreciation $897,851.17

's Deferred Debits 241,135.15 Earned Surplus 400,116.14 Credit: Electric Plant In Service $1,539,102.46 The reduction of Electric Plant In Service of $1,539,102.46 represents the ad.}ustment, required to state acquired property at original cost.

The reduction of f.he Accumulated Provision for Depreciation of $897,851.17 is the depreciation accumulated on the amount being credited to plant from the dates of acquisition through .

December 31, 1971.

Since the basis of property and plant for purposes of computing tax depreciation is not reduced by the original cost adjustment, a future tax benefit of $241,135.15 will be reali:cd. This amount is propose,I to be established as a Deferred Debit and amorti:cd over a period not longer than the rc=aining lives of the property invol.ved to offset the effect of tax benefits which will be reali:cd.

Mr. Morris R. Fitzgerald Page 2 , ,

December 30, 1971 As of December 31, 1969 constructed. additions represent 97.6%

of the Plant Account. The balance of the Plant Account is reprocented by the remaining portion of acquired proporties amounting to $8,309,530.25. The proposed original cost adjust-ment of $1,539,102.46 amounts to 18.5% of the remaining acquired propertics. We consider this to be good cost but at the same time recognize that it is not " original cost" a.s defined by th'e Federal Power Commission. With reluctance, we propose to make this very significant reduction in our plant account in the amount shown, n,,... ...  : .. ,. ,

E woul'd'appreEiat'e' preliminary approval to record this entry as of..Deccaber 31, 1971 pending the results of an audit of ' ' '

'khe" Orig'inalCostStatement .

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