ML20198G707

Forwards Request for Addl Financial Info Re 731015 Application for License & 740722 Amend to Application. Response Requested by 750605 in Order to Meet SER Input Date of 750703

ML20198G707
Person / Time
Site:	Washington Public Power Supply System
Issue date:	04/28/1975
From:	Petersen J Office of Nuclear Reactor Regulation
To:	Schwencer A Office of Nuclear Reactor Regulation
References
CON-WNP-1062 WNP-1062, NUDOCS 8605290736
Download: ML20198G707 (10)

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l Docket Nos.30-460 I cnd 50-513 i

i i Albert Sc!wencer, Chief, LKR 2-3, RL

'ihrd1: Donald J. Skovholt, Assistant Director for Quality Assurance and Operations, RL NASliI?lTIM PUBLIC PONER SUPPLY SYSTDt: ITJCLEAR PinIECT NOS.1 AND 4 l

h'e have reviwed the financial informaticn in the license application (dated Octcber 15, 1973) and in Ar.cndrent No. I thereto (dated July 22 1974) for the subject facilities. Pesponses to the attached list of

questions are needed to update the previously subu

itted infon ation and to secure additional information. This will enable us to corplete our review of the applicant's financial qualifications to design and constract 7.NP Units 1 and 4. Uc need the applicant's complete respenses by June 5,

, 1975, in order to r.cet the SER Supplement input date of July 3,1975, as specified in Blue Book I.

j ric-Jim C. Petersein, Financial Analyst Office of the Assistant Director for Qaality Assurance 6 Operations

. Divisicn of Reactor Licensing l

Enclosure:

As stated cc: T. Cox E. Coulbourne DISTRIBUTION:

Docket Files (2) #Neltz, RL:QA0/ FIN g/j)#

Subject File Reading File E605290736 750428 7 Il1Skovholt, RL:ADQA0 PDR ADOCK OD000460 JCPetersen, RL:QAD/ FIN E PDR

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Forse AEO 315 (Rev. M3) AECht 0240 W u. s. eovs,mmaser Pmatino o* Ness sera.ese-ees

REQUEST FOR ADDITIONAL FINANCIAL INFORMATION WPPSS NUCLEAR PROJECT NOS. 1 AND 4 DOCKET NOS. 50-460 AND 50-513

1. Amendment No. 1 (dated July 22,1974) to the license application in-

,dicates that the total capital cost of WNP-Unit 1 will be financed by the issuance of WPPSS revenue bonds, with interim financing provided by the issuance of WPPSS revenue notes. It is further indicated that the issuance of the revenue bonds will be based upon the contractual commitments of 104 consumer-owned utilities (the " Participants") and five investor-owned utilities (the " Companies"), to purchase the entire electrical output capability of WNP-Unit 1. Provide us with repre-sentative samples of these contracts as well as samples of both the

" Net Billing Agreements" to be used with the Participants, and the

" Exchange Agreements" to be used with the Companies. By way of updating Amendment No. 1, Exhibit A, " Financial Qualifications", provide the following additional information:

(a) Describe in detail the contractual security provided by the Participants and the Companies as a basis for issuing WPPSS re-venue obligations to finance the subject facilities.

(b) Describe in detail the financing plan for WNP-Unit 4 which was not firmly established a't the time Amendment No. I was submitted to the Commission.

(c) Identify the source (s) of short and long-term debt service pay-ments during the period of construction of each unit.

(d) Describe the contractual arrangements between WPPSS and the Participants and Companies, that will provide not only for pur-chase of the entire electrical output capabil.ity of the units

, but that will also provide adequate funds for debt service and retirement of the'WPPSS revenue obligations used to finance WNP-Units 1 and 4.

What assurances does WPPSS have that the Participants and the Companies will.have the capability to pay their respective shares of the total capital, interest, and operating costs of the facilities in the event these costs escalate above current estimated levels?

(e) Are the Participants and Companies required to pay their respective portions of the facilities' total costs (including debt service) regardless of the level of power availability from the units? If not, describe the source (s) of funds to make up any difference.

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• (f) What is the nature and amount of reserves, if any, required to be maintained by WPPSS to provide for debt service charges on revenue bonds? What is the source of funds for the reserves?

l (g) Previously submitted information indicates that WNP-Unit 1 (and

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presumably WNP-Unit 4) will be financed on a project basis as a separate generating system, as have all construction projects undertaken by WPPSS. If there is to be any deviation from this financing method in the case of WNP-Units 1 and 4, provide details of the financing plan and a detailed statement of sources of funds with underlying assumptions for each year through completion of construction of both units.

4 (h) Provide any further information that is needed to completely update Exhibit A. " Financial qualifications", of Amendment No.l.

! 2. Provide copies of the indenture and/or other documents governing the issuance of long-term debt by WPPSS.

3. Provide a detailed explanation of all restrictions and constraints on the sale of long and short-term debt. Short-term debt should include notes, bank lines of credit, and commercial paper, if any. If interest coverage requirements apply to any class or classes of debt, explain i the requirements and recent twelve months'period. provide- a calculation of the coverage for the most

4. Provide copies of Official Statements prepared in connection with the most recent WPPSS bond and note issuances, including issuances specifically related to the financing of WNP-Units 1 and 4. If there are prospective debt issues related to the subject units, provides copies of the pre-liminary Official Statements.

5. Provide for each unit the most _recent ccst estimates grouped as follows:

(a) total nuclear production plant costs; (b) transmission, distribution, and general plant costs; and (c) nuclear fuel inventory cost for the first core. Also, complete the attached schedule titled, " Plant Capital Invest-ment Summary", for each unit using the most recent cost estimates,

6. If nuclear fuel for the facility is to be acquired by lease or other arrangement than purchase, submit ccpies of the lease or documents relating to the "other arrangement".

7. Indicate the earliest and latest estimated dates for completion of con-struction of each unit.

8. Provide copies of WPPSS' financial statements for the most recent twelve months' period. Include the " Statement of Funds" for the subject nuclear '

units. Also, copies of similar statements for the corresponding twelve months' period ended in the previous year should be submitted. Subsequent to the current submission, continue to submit copies of the WFPSS annual financial statements as required by 10 CFR 50.71(b). .

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9. Provide for each of the five investor-owned Companies the following information:

(a) copies of the 1974 Annual Report to Stockholders; (b) copies of interim financial statements including income and retained earnings statements and balance sheet for the most recent twelve months' period. Copies of similar statements for the corresponding twelve months' period ended in the previous year should also be submitted, and (c) copies of the prospectus for the most recent security issue.

10. Provide a 1974 u:sdate of the financial and operating summaries of the 104 consumer-owned Participants as presented in Schedule III, Exhibit A, of Amendment No. 1.

11. Indicate the amount of WPPSS' most recent rate relief action and provide copies of the relative rate order (s) establishing the increases. Provide details of the amounts and timing of any prospective WPPSS rate increases.

Describe the statutory authority, if any, allowing WPPSS to charge rates to its member utility districts that are sufficient to cover all costs of operation plus a reasonable return on investment.

" Attachment for Item No. 5" ,

3 PLANT CAPITAL I!,7EST}T';T SU10tARY BASIC DATA Na=a of plant Cost basis ac start of co .screctica Net capacity HW(e)

Reactor type , ,

Location Tyee of cooling Run of river Design and construction eeriod Natural draf t cooling ecuers Month, year NSSS ordar Nkchanical draf t placed cooling tevers Month, year of co=nercial Other (describe) operation Length of workwaek

• Interest rate, interest during construction COST S*C.?>2T Account Ne=ber Account Title Total C se (tho . sand dol.'_ars)

DIKICT COSTS 20 Land and land rights . . . . . . . . . . . . . . . . . . . . $

PHYSICAL PLA'IT . .

21 Structures and site facilities..........

22 -

Reactor plant equipment. . . . . . . . . . . . . . . . .

23 Turbine plant equ4 pnent. . . . . . . . . . . . . . . . . >

j 24 Electric plant equip =en t. . . . . . . . . . . . . . . .

i 25 Misc. plant equipcent...................

l Subtota1........................ $

Spare parts a11ovance...................

Contingency allevance...................

Subtota1........................ $

, INDI?.ICT COST 3 l 91 ,

construction facilities, equip't, and i services........................,..... S 92 Engineering and cons t. =g't. services. . . _,

93 Other costs.............................

94 Interest during construction............

Subtota1........................ S r

S tart o f cons t ruction cos t. . . .. . . . . . . . . . 3 Escalation during construction (_ _% y r ,)

Total plant capital investeent (S /K:7) 3 i

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Docket Nos. 50-460 -

and go-513---

Albert Scheencer, C,ief, LFR 2-3, RL Erdh Donald J. Skovholt, Assistant Director for Quality Assurance and Operations, RL WAS!! LNG 1m PUBLIC PO'G . SUPPLY SYSTO!: NUCLEAR PFDJECT NOS.1 A'O 4 We have revicized the financial infornation in the license application (dated October 15, 1973) and in Avendrent No. I thereto (dated .Tuly 22, 1974) for the subject facilitics. Respenses to the attached list of questions are needed to u;idate the previously suhitted infon : tion and to secure additional infon ation. This till enabic us to cocplete cur revice of the applicant's finnncial cualifications to desi nS and ccustn:ct

'.NP Units 1 and 4. Uc need the applicant's conplete respcnses. by June 5, 1975, in order to ncet the S"R Suppleront input date of July 3,1975, as specified in Illue Book I.

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Jim C. Poten;cn, Financial Analyst Office of the Assistant Director for Quality Assurance 6 Operations

. Divisica of Reactor Licensing

Enclosure:

As stated cc: T. Cox II. Goulbourne DISTRIBUTION:

Docket Files (2) NNeltz, RL:QA0/ FIN Subject File Reading File

-DISkovholt, RL:ADQA0 JCPetersen, RL:QA0/ FIN 4

.m. . . RL:nA0/ FIN RL:0AO/ FIN RLYADhAO

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REQUEST FOR ADDITIONAL FINANCIAL INFORMATION WPPSS NUCLEAR PROJECT NOS. 1 AND 4 DOCKET NOS. 50-460 AND 50-512

1. Amendment No. 1 (dated July 22,1974) to the license application in-dicates that the total capital cost of WNP-Unit I will be financed by the issuance of WPPSS revenue bords, with interim financing provided by the issuance.of WPPSS revenue notes. It is further indicated that the issuance of the revenue bonds will be based upon the contractual commitments of 104 consumer-owned utilities (the " Participants") and five investor-owned utilities'(the "Com;.anies"), to purchase the entire electrical output capability of WNP-Unit 1. Provide us with repre-sentative samples of these contracts as well as samples of both the

" Net Billing Agreements" to be used with the Participants, and the

" Exchange Agreements" to be used with the Companies. By way of updating Amendment No.1, Exhibit A, " Financial Qualifications", provide the following additional information:

(a) Describe in detail the contractual security provided by the Participants and the Companies as a basis for issuing WPPSS re-venue obligations to finance the subject facilities.

(b) Describe in detail the financing plan for WNP-Unit 4 which was not firmly established at the time Amendm'ent No. I was submitted to the Commission. -

(c)

• Identify the source (s) of short and long-term debt service pay-ments during. the period of construction of each unit. '

(d) Describe the contractual arrangements between WPPSS and the Participants and Companies, that will provide not only for pur-chase of the entire electrical output capability of the units but that will also pro' vide adequate funds for debt service and retirement of the WPPSS revenue cbligations used to finance WNP-Units 1 and 4.

• What assurances does WPPSS have that the Participants and the Companies will have the capability to pay their respective shares of the total capital, interest, and operating costs of the facilities in the event these costs escalate above current estimated levels?

(e) Are the Participants and Companies required to pay their respective portions of the facilities' , total costs (including debt service) regardless of the level of power availability from'the units? If not, describe the source (s) of funds to make up any difference.

9 (f) What is the nature and amount of reserves, if any, required to be maintained by WPPSS to provide for debt service charges on revenue bonds? What is the source of funds for the reserves?

(9) Previously submitted information indicates that WNP-Unit 1 (and '

presumably WNP-Unit 4) will be financed on a project basis as a separate generating system, as have all construction projects undertaken by WPPSS. If there is to be any deviation from this financing method in the case of WNP-Units 1 and 4, provide details of the financing plan and a detailed statement of sources of funds with underlying assumptions for each year through completion of construction of both units. .

(h) Provide any further information that is needed to completely update Exhibit A, " Financial Qualifications", of Amendment No.l.

2. Provide copies of the indenture and/or other documents governing the issuance of long-term debt by WPPSS.

3. Provide a detailed explanation of all restrictions and constraints on the sale of long and short-term debt. Short-term debt should include ,

notes, bank lines of credit, and commercial paper, if any, If interest coverage requirements apply to any class or classes of debt, explain the requirements and recent twelve months'period.

provide a calculation of the coverage for the most

4. Provide copies of Official Statements prepared in connection with the most recent WPPSS bond and note issuances, including issuances specifically related to the financing of WNP-Units 1 and 4. If there are prospective debt issues related to the subject units, provides copies of the pre-liminary Official Statements.

5. Provide fe. each unit the most recent cost estimates grouped as follows:

(a)totalnuclearproductionplantcosts;(b) transmission, distribution, and general plant costs; and (c) nuclear fuel inventory cost for the first core. Also, complete the attached schedule titled, ' Plant Capital Invest-ment Summary", for each unit using the most recent cost estimates.

6. If nuclear fuel for the facility is to be acquired by lease or other arrangement than purchase, submit copies of the lease or documents relating to the "other arrangement".

7. Indicate the earliest and latest estimated dates for completion of con-struction of each unit.

8. Provide copies of WPPSS' financial statements for the most recent twelve months' period. Include the " Statement of Funds" for the subject nuclear units. Also, copies of similar statements for the corresponding twelve months' period ended in the previous year should be submitted. Subsequent to the current submission, continue to submit copies of the WPPSS annual financial statements as required by 10 CFR 50.71(b).

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e 9.

Provide for each'of the five investor-owned Companies the following informption:

! (a) copi'es of the 1974 Annual Report to Stockholders;

.(b) copies Irf- intarim financial statemen'ts including income and

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-g i retained earnings statements and balance sheet for the most recent twelve months' period. Copies of similar statements for the j corresponding twelve months' period ended in the previous year.

shouldtalso be submitted, and (c) copies of the prospectus for the most recent security issue.

'. 10. Provide a 1974. update of the financial and operating sumnaries of the ;l

!' 104 consumer-owned Participants as presented in Schedule III, Exhibit A, of Amendment No. 1. .

l 11. Indicate the amount of WPPSS' most recent rate relief action and provide copies of the relative rate orde'r(s). establishing the increases. Provide'-

details of the amounts and timing of any prospective WPPSS rate increases.

, , Describe the statutory authority, if any, allowing WPPSS to charge rates

'to its member utility districts that are sufficient to cover all costs ll l i

, of operation plus a reasonable return on investment.

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" Attachment for Item No. 5" , ,

9 PLANT CAPITAL IWEST15';T SU1DfARY .

BASIC DATA Na=e of plant Cost basistat start of constreetic:

Net capacity MW(e)

Reactor type ,

, location Type of cooling Run of river Design and construction oeriod Natural draf t cooling tcvars Month, year NSSS ordar Mechanical draf t placed cooling tewers Month, year of co=sercial Other (describe) operation Length of workweek Interest rate, interest during construction COST SL7 MARY Account Nu=ber Account Title Total Ces:

(tho.. sand del'.ars)

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DIRECT COSTS 20 . Land and land rights . . . . . . . . . . . . . . . . . . . . $

PHYSICAL PLA'IT -

21 Structures and site facilities..........

22 -

Reactor plant equip =ent.................

23 Turbine plant equip =ent. . . . . . . . . . . . . . . . .

24 Electric plant equip =ent................

25 Misc. plant equip = ant...................

Subtotal.................;...... $

Spara parts a11ovance...................

Contingency allowance...................

Subtotal........................ S I'DIRICT COSTS 91 ,

Construction facilities, equip't, and services.............................. S 92 Engineering and const. =g't. services...

93 Other costs.............................

94 Interest during construction............

Subtotal........................ S Start of construction cost.............. S Escalation during construction (__% yr. )

Total plant capital invest = ant ($ /:-C.7) S 9

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