ML20210U669

Forwards from Massachusetts State Senator T Murray Opposing Merger Between Bec Energy & Commonwealth Energy Systems

ML20210U669
Person / Time
Site:	Pilgrim
Issue date:	08/18/1999
From:	Clifford J NRC (Affiliation Not Assigned)
To:	Besser J MASSACHUSETTS, COMMONWEALTH OF
References
NUDOCS 9908200178
Download: ML20210U669 (2)

Text

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Q Ms. Janet Gail Besser, Chairperson August 18, 1999 Department of Transportation and Energy 1 South Station Street Boston, MA 02110

SUBJECT:

COMMENTS FROM THERESA MURRAY REGARDING THE MERGER OF BEC ENERGY AND COMMONWEALTH ENERGY SYSTEMS

Dear Chairperson Besser:

We have enclosed a June 25,1999, letter from Massachusetts State Senator Theresa Murray. Senator Murray opposes the merger between BEC Energy and Commonwealth Energy Systems. Senator Murray's concerns are not in the purview of the Nuclear Regulatory Commission. We are forwarding her letter to you because some of her concerns may be more appropriately addressed by your agency.

Sincerely, ORIGINAL SIGNED BY:

James W. Clifford, Chief, Section 2 Project Directorate i Division of Licensing Project Management Office of Nuclear Reactor' Regulation Docket No. 50-293

Enclosure:

As stated DISTRIBUTION:

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Ms. Janet Gail Besser, Chairperson Department of Transportation and Energy i 1 South Station Street l Boston, MA 02110

SUBJECT:

COMMENTS FROM THERESA MURRAY REGARDING THE MERGER OF BEC ENERGY AND COMMONWEALTH ENERGY SYSTEMS

Dear Chairperson Besser:

We have enclosed a June 25,1999, letter from Massachusetts State Senator Theresa Murray. Senator Murray opposes the merger between BEC Energy and Commonwealth Energy Systems. Senator Murray's concerns are not in the purview of the Nuclear Regulatory Commission. We are forwarding her letter to you because some of her concerns may be more appropriately addressed by your agency.

i Sincerely, v1h eY ,

James W. Clifford, Chief, Section 2 )

Project Directorate I 1 Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket No. 50-293 -

Enclosure:

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fax 16171722 1072 STEERLOS M.O Poi;y Hf ALTH CARE n m v . n. . . as-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 Commomvealth 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 customerr in Boston and 39 other communities, and through an unregulated joint venture with RCN Communications has begun offering cable, Internet, and telephone services locally. Boston Edison, a, subsidiary of BEC Energy, owns the P_ilgrim_nuclearpower. plant in Ppmouth_..The ,, plant inust be'sofct before the BEC E~ n er~gy/ Commonwealth Energy merger can proceed. It is

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my understaiiding that' Edison is in'tTie process oTseihing tneilant tdJin'teriy'lTucTear Inc.

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'of New Orleans.Touisiana. Com Energy has373,000 electric customers m areas Tnc7udilig Cam 6ndge,' Cape 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 rernain 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. Furthermore the companies do not give any assurances that the l customers will receive the benefit oflower electrical rates or improved quality of service.

! in addition, the companies do not provide a guarantee of saving to consumers to offset merger charges. If this merger takes place ratenayers 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 Enclosure f f_'~

E Page 2 Letter of State Senator Therese Murrav l

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 Comrn nwealth Edergy System and advocate for the consumers of the commonwealth. l Thank ybu for ypr time and consideration.

Sinfrely, ,

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j Therese Murray j

/ State Spator

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