ML19242D131

Suppl 2 to Amend 40 to Application for CP & Request for Partial Transfer of CPPR-135 & CPPR-136.Certificate of Svc & Supporting Documentation Encl

ML19242D131
Person / Time
Site:	Seabrook
Issue date:	08/08/1979
From:	Merrill D PUBLIC SERVICE CO. OF NEW HAMPSHIRE
To:
Shared Package
ML19242D129	List: ML19242D128 ML19242D131
References
NUDOCS 7908140535
Download: ML19242D131 (8)

Text

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4 PUBLIC SERVICE g g[LJf 7Ni Companyof NewHampshir e August 8, 1979 United States Nuclear Regulatory Commission Directorate of Licensing Office of Regulation Washington, D. C. 20045 Attention: Director, Directorate of Licensing Re: Suoplerent No. 2 to Amendment LO to License Application Dated March 30, 1973 (Docket Ucs.

50 443 & 50-444) and Request for Partial Transfer of Construction Permits Hos. CPPR-135 and CPPR-136 Gentlemen:

Pursuant to the Atomic Energy Act of 1954, as amended, and the Commission's Rules and Regulations thereunder, Public Service Company of New Hampshire, on behalf of itself and the other licensees named in the above Construction Permits, hereby supplements Amendment 40 to the above License Application as ~

filed on May 16, 1979 as follows:

1. As to Bangor Hydro-Electric Company - enclosed herewith are 25 copies of revised pages which supersede material filed as part of Supplement No. 1 to Amendment 40 (and should be substituted therefor) as follows:

(a) Four pages dated 7/30/79 which respond to the first item under clause 1(d)(1) .,c4

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of Supplement No. 1; and 7908140 fil:57'

(b) A table of construction expenditures dated 7/30/79 which responds to the next to the last item under clause 1 (d)(1) of Supplement No. 1.

This supplenent to Amendment 40 (three signed originals, under oath, and twenty-two copies) is being submitted by Public Service Company of New Hampshire on behalf of all the current participant s in the proj ect . Copies of the Appointment of Agent forms authorizing Public Service Conpany of !!ew Hampshire to act on behalf of the participants have previously been filed.

Respectfully submitted, PUELIC SERVICE CO:1PAHY OF HEW HAMPSHIRE r ~

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}\l Tv D. N. I".e r rill Executive Vice President

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• e STATE OF HEW HAMPSHIRE COUNTY OF HILLSEOROUGH Personally appeared before me this 90 day of August, 1979, D. H. Merrill, uho, being duly sworn, did state that he is Executive Vice President of Public Service Company of New Hampshire, an appl 3 cant herein, that he is duly authorized to e'xecute and file the foregoing supplement in the name and on behalf of Public Service Company of New Hampshire, and that the statemente in said supplement are true to the best of his knowledge and belief.

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it Hotary Public My Commission Expir.-

2 h'J EL L ig a' [_ '~ L 7/30/79 e

Item:

Provide the following information for each applicant:

Complete the attached schedule entitled, " Sources of Funds for System-Wide Construction Expenditures During the Period of Construction of Subject Nuclear Power Plant", through the years of earliest estimated completion of Units Nos. 1 and

2. Indicate the assumptions upon which the " Sources of Funds" statement is based. These assumptions inclucc. but are not necessarily limited to: (a) rate of return on average common equity: (b) preferred stock dividend rate:

(c) long-term and short-term debt interest rates: (d) market / book ratio with respect to the projected common stock offerings: (e) common stock dividend payout ratio: (f) target and year by year capital structure: (g) resultant SEC and indenture interest coverages during each year of the period of construction; and (h) annual growth rate in KWH sales and price per KWH. Provide a brief explanation of the basis for each assumption.

If nuclear fuel for the facility is to be acquired by lease or other arrangement than purchase, briefly describe the terms of the lease or other arrangement.

Response

The attached schedule shows Sources of Funds for System-Wide Construction Expenditures for Bangor Hydro-Electric Company ("BH") du.-ing the Period of Construction of the Seabrook Nuclear rnits. The table is based on the following assumptions:

(1) Return on average common stock equity:

1979 - 11.2%

1980 - 13.8%

1981 - 13.25%

1982 - 13.25%

1983 - 13.25%

1984 - 13.25%

1985 - 13.25%

(2) Preferred Stock dividend rate - 10%

(3) Long-term debt interest rates - 11%

(4) Short-term debt interest rates- 10%

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7/30/79 (3) Market-to-book ratio for projected common stock offerings - 1.0 (6) Common stock dividend payout ratio - the goal of BH is to achieve and maintain a payout ratio of 70%-80%.

(7) Target capital structure - 50% Long-Term Debt, 10% Preferred Stock, 40% Common Stock Equity.

(8) Year by Year Capital Structure -

1979 1980 1981 1982 1983 1984 1985 Long-term debt 50% 48% 48% 48% 49% 49% 49%

Preferred stock 14% 13% 13% 13% 12% 12% 12%

Common stock equity 36% 39% 39% 39% 39% 39% 39%

(9) Net earnings interest coverage (including AFDC) will vary as follows:

1979 -

2.1 1980 -

3.2 1981 -

2.8 1982 -

2.7 1983 -

2.8 1984 -

2.8 1985 -

2.8 (10) The average annual growth rate in KWH sales - is 4.4%.

(11) Average price per KWH:

Mills /KWH With Fuel Costs 1979 38.06 1980 41.14 1981 41.32 1982 45.54 1983 49.97 1984 50.94 1985 54.77 em s' % ,7 ' W

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. 7/30/79 Assumptions (1) through (8) above are based upon manage-ment's considered judgment and best estimates, relying upon experience and consultation with the Company's investment bankers and other members of the financial community.

BH may enter into lease agreements for the acquisition of nuclear fuel, but no such agreements have been made at this time. It is expected that such transactions would be actually conducted on behalf of the Company and the other participants by the lead owner.

The growth rate is derived from a detailed analysis by BH's planning department of population trends, character-istics of electrical load, economic development, and underlying assumptions and projections covering such matters as appliance efficiency and increased self-generation for industrial customers.

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a===== ATTACitMEN T FOR ITFH NO. 2.a 7/30/79 gQ APPLICANT: BANGOR llYDko-ELECTRIC COMPANY N'JCLEAR Pl. ANT: SEAf*00K UNITS PRO

• • rmem FO_lgtA Sa 41HCES Oy FUNDS FOR_ SYSTEM-Wil)E_ CONSTRUCT!tlN_EXPypilllRE S AM CAPITA!. STkUCTURE DURING PERIOD OF CONSTRUCTION OF SllB IECT NUrl. EAR PtNF R PLANT k (Millions of Dollars)

D Const ruct ion Years of Subject Nuclear Power Plant 1979 1980 1981 19H2 1983 1984 1985 EX1ERNAI. FINANCING Counon stock 7.710 3.100 4.3/0 2.020 3.540 5.900 Preferred stick 3.000 2.000 1.330 1. 04 0 .800 1.210 1.840 Iung-team debt 7.000 10.299 6.820 6.390 4.170 7.200 Notes payable 10.870

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3.2HO 2.176 1.220 1.721 1.061 Total External Funds 7.857 20.009 15.H00 12.706 8.210 13.671 19.671 INlERNAll.Y GtNFRATED CASli Net incom 3.409 4 H38 5.611 6.160 6.940 7.570 8.530 1.e a s Prel erred illvl. lends

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(.591) (.732) (.732) (.820) (.910) (1.010)

Conm.ou d iv i.len.j s _.( 2. ? l t,) (1.170)

RetaincJ earnings (2.925) (3.950) (4.460) (4,8_50) (5.270) (5.900) 082 1.181 .929 1.080 1.180 Det e ri e i taxes 1.290 1.460

.130 .220 .240 .220 .480 Invest. tax cred.-Jelerted .710 .900

.650 1.930 1.4 30 .710 .630 1.110 bepreciation and amort. 1.960 2.835 2.976 3.100 3.210 3.750 4.300 Ch. ng,o in working capital (2.268) 4.860 (1.250) (.550) (2.900) (2.120) (2.540)

Ot'er (1.849) .750 - -

(1.160) 1.e .s : AFUDC - -

(.67/) (1. 6 3 5L (2.2H0) (3.140) (2.780) (2.570) (2.940)

Total inteinal Fnn.ls 4.172 TOTAL. FUNDS

_(12197} 4 .H69 (.820) 1.140 2.300 5.080 J.]p0 1(JJL _

CONSTRifGTION EXPENh!'IURES ILM9 _ .11 3 %_ LD0_ . _ 15.971__ _ _ _ 21,]jl, Nuclear power plants 690 16.311 14.799 6.720 4 . 8 f,4 7.834 10.126 Other 5.900 5.700 3.700 3.996 4.316 6.967 12.955 Total const. exp's. _6 J')O JJgl __ _ _ _ lp_.My 10.7J6_ 9,1R0 _

Snhject nuclear plant gl9. lb MOL _ _ _,23,0 1 OTilER CAPI fAL Rt:QllikFMINTS 1% 1 % . u J61. _ Lp07 . . _ _ 3. U6 2.190_ _ 01 Ledempt ion of Na t i.r l og liond s .l70 2.170 .170 1.170 .170 1.170 1.670 loral. CAPITAL REQUIRt21F NTS ddt!L_ . 20 191 18.669 ti, H.llt, 9,3s0 __ .13,971 CAPITAL S'ikUC'IURE ($ 6 %) _

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Long-t re m Jel,t $M.3 50% $42.4 48% $49.1 48% $ 54. 3 48% $58.3 Pieferred stock 9.7 49% $64.3 49% $73.5 49%

14% 11.7 13% 13.0 13% 14.1 13% 14.9 Canaon equity 2 5. 't 12% 16.1 12% 17.8 12%

ib! M.2 19% 19.5 T)% 43.7 19% 46.9 39% 51.7 TOTAI. 39% 59.1 19%

_t.231J QO.1 Q,J_LQu'. 10] L l_f]G _ Ul, L I.M l_ _ ]2.0d _103 . lU ,) 100%__ ]1Q,4 ]0 1 e

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BANGOR IIYDRO-ELECTRIC COMPANY CONSTRUCTION EXPENDITJRES 1979-1985

($'s in Thousands 1979 1980 1981 1982 1983 1984 1985 Total

1) Company T t D and other $5900 $5700 $3700 $3996 $4316 $4661 $5034 $33307

2) Public Service of New Ilampshire's Seabrook Units, Total Output 2300 MW, Bile share-50 MW:

Unit #1 Completion 1983, Unit #2 Completion 1985 619 16136 14363 5807 3116 2390 70 42501

3) NEPCO 1 & 2 (100MW)

Two nuclear 1150 MW units Unit #1 completion date 1987. Unit #2 1989 Bile share - 100 MN 71 175 436 913 1748 5444 10056 18843

4) Other Generation (40MW)

No commitments made as of this date - - - - -

2306 7921 10227 TOTAL $6590 $22011 $18499 $10716 $9180 $14801 $23081 $104878 I

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CERTIFICATE OF SERVICE I, John A, Ritnher, one of the attorneys for the applicants herein, hereby certify that on August 10, 1979 I nade service of the within Supplement No. 2 to Amendment 40 by mailing copies thereof, postage prepaid, first class, to:

Alan S. Rosenthal, Chairman E. Tupper Kinder, Esquire Atomic. Safety and Licensing As'sistant Attorney General Appeal Board Entironmental Protection Division U.S. Nuclear Regulatory Commission Office of the Attorney General Washington, D.C. 20555 208 State House Annex Concord,. New Hampshire 03301 Dr. John H. Buck Atomic Safety and Licensing Karin P. Sheldon, Esquire Appeal Board Sheldon,6Harmon, Roisman & Weiss U.S. Nuclear Regulatory Commission Suite 50 1725 I Street, N.Y.

Washington, D.C. 20555 Washington, D.C. 20006 Michael C. Farrar, Esquire Atomic Safety and Licensing Dr. Ernest O. Salo Appeal Board Professor of Fisheries Research U.S. Nuclear Regulatory Commission Institute Washington, D.C. 20555 College of Fisheries University of Washington Ivan W. Smith, Esquire Seattle, Washington 98195 Atoric Safety and Licensing Board Panel Dr. Kenneth A. McCollum U.S. Nuclear Regulatory Commission 1107 West Knapp Street Washington, D.C. 20555 Stillwater, Oklahema 74074 Joseph F. Tubridy, Esquire Robert A. Backus, Esquire U10.0 Cathedral Avenue, N.W. O'Neill Backus Spielman Washington, D.C. 20016 116 Lowell Street Manchester, New Hampshire 03105 Dr. Marvin M. Mann Atomic Safety and Licensing Laurie Burt, Esquire Board Panel Assistant Attorney General One Ashburton Place U.S. Nuclear Regulatory Commission Washington,. D.C. 20555 Boston, Massachusetts 02108 Lawrence Brenner, Esquire Cffice of the Executive Legal Director U.S. Nuclear Regulatory Ccmmission Washington, D.C. 20555

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John A. Ritsher i

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