October 10, 2000
Docket Nos. 50-277
50-278
BY HAND DELIVERY ON OCTOBER 12, 2000
U.S. Nuclear Regulatory Commission
Attn: Samuel J. Collins, Director, Office of Nuclear Reactor Regulation
Mail Stop O-5, E7
One White Flint North
11555 Rockville Pike
Rockville, MD 20852-2738
Re: Peach Bottom Atomic Power Station, Units 2 & 3
Facility Operating License Nos. DPR-44 & DPR-56
Supplemental Information: Transfers of Non-Operating Ownership Interests
Dear Mr. Collins:
On April 21, 2000, the Nuclear Regulatory Commission ("NRC") issued
Orders approving the transfer of the minority, non-operating interests of
Atlantic City Electric Company ("ACE") and Delmarva Power and Light Company
("DP&L") in the Peach Bottom Atomic Power Station, Units 2 & 3 to PECO Energy
Company ("PECO") and PSEG Nuclear LLC ("PSEG Nuclear"). The NRC also approved
conforming changes to the Peach Bottom 2 & 3 Operating Licenses to reflect the
transfers.
In addition, on August 3, 2000, the NRC issued an Order approving the
transfer of PECO's interests in Peach Bottom 1, 2 & 3 to Exelon Generation
Company, LLC ("EGC") in connection with the proposed merger of PECO and Unicom
Corporation (Unicom) the parent of Commonwealth Edison Company (ComEd). EGC will
be a wholly owned subsidiary of Exelon Ventures Company, which will be a wholly
owned subsidiary of Exelon Corporation, a publicly traded company that will also
own ComEd and PECO. On October 5, 2000, the NRC issued an Order approving an
indirect transfer of control of PECO's interests in Peach Bottom 1, 2 & 3, on an
interim basis, as a result of PECO becoming a wholly owned subsidiary of Exelon
Corporation for a period of time prior to the formation of EGC and the transfer
of PECO's interests to EGC.
The purpose of the present letter is to bring to the NRC's attention
certain developments that have occurred since the April 21, 2000 Peach Bottom
Order was issued. These developments relate to the sequence in which the Peach
Bottom transactions and transfers will be implemented and appear to require NRC
administrative action to modify the approved, conforming Operating License
Amendments and to specify new minimum decommissioning fund amounts to be
transferred. If the NRC concludes that new transfer orders are necessary, PECO,
on behalf of itself and PSEG Nuclear, DP&L, and ACE, requests that the NRC treat
this letter as an application for appropriate orders.
1. Sequence of Transactions for Peach Bottom 2 & 3
Both PECO and PSEG Nuclear originally contemplated that the transfer
of the DP&L and ACE interests in Peach Bottom 2 & 3 would occur simultaneously
in the Spring of 2000. PSEG Nuclear anticipated that this would occur prior to
the reorganization of the Public Service Enterprise Group ("PSEG"), and PECO
anticipated that these transactions would be completed prior to the PECO-Unicom
merger. The anticipated sequence of the transactions has now been modified, as
follows.
First, the PSEG reorganization has occurred, and the interests in
Peach Bottom 2 & 3 previously held by Public Service Electric & Gas Company were
transferred to PSEG Nuclear on August 21, 2000.
Similarly, the PECO-Unicom merger is likely to be consummated prior to
any transfer of the DP&L and ACE interests in Peach Bottom 2 & 3. It now appears
that transfers of the DP&L and ACE interests could occur at various times
relative to various stages of the PECO-Unicom merger and restructuring of the
generating assets of PECO and ComEd.
In addition, PECO originally anticipated that its interests in Peach
Bottom 2 & 3 would be transferred to EGC upon consummation of the merger.
However, as indicated in its July 7, 2000 Application, PECO now anticipates that
it will become a wholly owned subsidiary of Exelon Corporation for an interim
period of time prior to the transfer of its interests to EGC. Therefore, the
transfers of DP&L and ACE interests could be made: (1) to the current PECO;
(2) to PECO, as a direct wholly owned subsidiary of Exelon Corporation; or
(3) to EGC, as an indirect wholly owned subsidiary of Exelon Corporation.
2. Interim DP&L Transfer for Peach Bottom 2 & 3
Certain regulatory approvals in New Jersey that are needed before ACE
can transfer its nuclear interests are still pending. Specifically, while the
New Jersey Board of Public Utilities ("BPU") has approved the transfer of the
ACE interests, it has not yet issued a final order covering all aspects of the
transaction. It is unclear when such an order will be issued. Additionally, an
appeal of the BPU decision in the PSEG restructuring case that challenges the
BPU's implementation of the deregulation legislation in New Jersey has been
filed. This situation has caused ACE to delay the closing on the transfer of its
nuclear assets.1
---------------
1 Transfer of the DP&L and ACE interests in Salem 1 & 2 and Hope Creek are
the subject of a separate letter being submitted on those dockets by PSEG
Nuclear.
On the other hand, the state regulatory approvals required for the
transfer of the DP&L interests have been completed. Accordingly, the parties to
these transactions have agreed to proceed with the transfer of the DP&L
interests in Peach Bottom 2 & 3 (subject to any necessary NRC action), while
deferring the transfer of the ACE interests in Peach Bottom 2 & 3 until the
status of restructuring in New Jersey is more certain.
While the NRC's April 21, 2000 Order has already approved the transfer
of the interests of both DP&L and ACE, the proposed implementation of these
transfers in two steps (first DP&L and second ACE) creates a need to modify the
previously approved conforming License amendments for Peach Bottom 2 & 3 to
reflect that, until completion of the ACE transfer, ACE will remain on the
licenses for Peach Bottom 2 & 3 as a minority, non-operating owner -- while the
DP&L interest will be transferred to PECO/EGC and PSEG Nuclear.
To illustrate, the current (October 2000) ownership interests in the
Peach Bottom units (before either the DP&L or ACE transfers) are as follows:
--------------------------------------------------------------------------------
Peach Bottom 2 Peach Bottom 3
(%) (%)
--------------------------------------------------------------------------------
ACE 7.51 7.51
DP&L 7.51 7.51
PSEG Nuclear 42.49 42.49
PECO 42.49 42.49
--------------------------------------------------------------------------------
Under the plan now agreed to by PECO, PSEG Nuclear, DP&L, and ACE, as
discussed above, the DP&L interests will be transferred to PECO/EGC (3.755%) and
PSEG Nuclear (3.755%) prior to the transfer of the ACE interests. Under this
approach, in an interim phase after the DP&L transfer but before the transfer of
the ACE interests, the ownership interests in the Peach Bottom units will be as
follows:
--------------------------------------------------------------------------------
Peach Bottom 2 Peach Bottom 3
(%) (%)
--------------------------------------------------------------------------------
ACE 7.51 7.51
PECO or EGC 46.245 46.245
PSEG Nuclear 46.245 46.245
--------------------------------------------------------------------------------
With respect to the transfer of the ACE and DP&L interests in Peach
Bottom 2 and 3 to PSEG Nuclear, the Orders and conforming License changes issued
by the NRC on April 21, 2000, were premised on an assumption that these
transfers would precede finalization and implementation of the PSE&G
restructuring. Accordingly, the conforming License changes approved by the NRC
retain PSE&G as a licensee but add PSEG Nuclear in the place of ACE and DP&L.
Because the PSE&G restructuring has now been accomplished, PSE&G is no longer a
licensee and will not be on the license at the time that the non-operating
interests of DP&L and ACE are transferred. Therefore, the conforming license
changes for Peach Bottom 2 and 3 need to be modified to omit any reference to
PSE&G.
As noted above, the NRC has already approved the transfer of the DP&L
Peach Bottom 2 & 3 interests to PECO and PSEG Nuclear in conjunction with the
ACE transfer. Moreover, the end state, following the transfer of both the DP&L
and the ACE interests to EGC, has been approved by the combination of the April
21 and August 3 Orders. The purpose of the present letter is to seek NRC
administrative actions to address: a) the interim arrangement for the Peach
Bottom units under which the transfer of the DP&L interest will take place while
the ACE transfer remains pending, b) the transfer of the PECO portion of the
DP&L/ACE interests, which could be made to PECO, PECO (as a direct wholly owned
subsidiary of Exelon Corporation), or EGC (as an indirect wholly owned
subsidiary of Exelon Corporation), together referred to herein as "PECO/EGC,"
and c) the results of the completion of the PSE&G restructuring.
3. Requested NRC Actions
To address the issues identified above, the Attachments to this letter
describe the administrative actions that the NRC should take. These Attachments
are:
o Attachments A2 & A3: (PECO, PSEG Nuclear and ACE are licensees.) Revised
mark-ups for the Peach Bottom 2 & 3 Licenses to reflect the transfer of
DP&L's interests to PECO and PSEG Nuclear, with ACE remaining a licensee.
(DP&L's interests are transferred to PECO prior to the transfer of PECO's
interests to EGC, but ACE's interests are not yet transferred.)
o Attachments B2 & B3: (PECO and PSEG Nuclear are licensees.) Revised
mark-ups for the Peach Bottom 2 & 3 Licenses to reflect the transfer of
both DP&L and ACE's interests to PECO and PSEG Nuclear. (Both DP&L and
ACE's interests are transferred to PECO prior to the transfer of PECO's
interests to EGC.)
o Attachments C2 & C3: (EGC, PSEG Nuclear and ACE are licensees.) Revised
mark-ups for the Peach Bottom 2 & 3 Licenses to reflect the transfer of
DP&L's interests to EGC (either from DP&L or from PECO) and PSEG Nuclear,
with ACE remaining a licensee. (DP&L's interests are transferred to
PECO/EGC, but ACE's interests have not yet transferred.)
o Attachments D2 & D3: (EGC and PSEG Nuclear are licensees.) Revised mark-ups
for the Peach Bottom 2 & 3 Licenses to reflect the transfer of DP&L and
ACE's interests to EGC (either from DP&L and/or ACE, and/or from PECO) and
PSEG Nuclear. (This is the planned end state under all scenarios.)
PECO and PSEG Nuclear view all of the above mark-ups as administrative
clarifications to the already approved conforming License Amendments. PECO has
also concluded that the information contained in this letter and its attachments
do not alter the conclusions reached in the 10 CFR 50.92 No Significant Hazards
analysis previously submitted with the previously approved License Amendment
requests. These administrative changes would seemingly not require new transfer
consents under 10 CFR 50.80 or new license amendments under 10 CFR 50.90.
However, to the extent the NRC views any new approvals as necessary, PECO, on
behalf of itself and PSEG Nuclear, DP&L, and ACE, respectfully requests that
those approvals be issued expeditiously.
4. Update on Decommissioning Funding Assurance for Peach Bottom
In the April 21, 2000 Order approving the transfers, the
decommissioning trust funds for the ACE and DP&L interests in Peach Bottom 2 & 3
were assumed to be combined and divided equally among PECO and PSEG Nuclear.
(Both ACE and DP&L were combined as the Conectiv interests. Decommissioning
funding assurance for the aggregated Conectiv interests was demonstrated.) Under
the two-phase transfer approach now contemplated for the Conectiv shares, it is
necessary to address the transfer of the DP&L and ACE decommissioning funds
separately. PECO requests that the NRC revise the transfer Orders for the Peach
Bottom units accordingly.2
---------------
2 The parties determined in preparation for closing that the level of funding
to be transferred by DP&L is different from what PECO and PSEG Nuclear had
previously understood. The revised showing provided herein utilizes current
estimates of the funds to be transferred by DP&L and ACE. Any
administrative action clarifying the prior approvals should be based on the
new estimates of funds for transfer by DP&L and ACE.
In Attachment E, PECO and PSEG Nuclear demonstrate decommissioning
funding assurance based on the decommissioning trusts to be maintained by
PECO/EGC and PSEG Nuclear immediately following closing on each transaction.
Initially, upon closing of the DP&L transfer, the DP&L funds will be transferred
to PECO/EGC and PSEG Nuclear, divided equally. By contract, PECO/EGC and PSEG
Nuclear will be further entitled to receive either the combined decommissioning
funding of both DP&L and ACE, upon the subsequent transfer of the ACE share, or
if the ACE transfer does not occur, PECO/EGC and PSEG Nuclear will each be
entitled to receive additional payments from ACE to adjust for the difference
between the DP&L balances and the average of the combined DP&L and ACE balances,
which they would have otherwise been entitled to receive. PECO/EGC and PSEG
Nuclear will make contributions to their respective trust funds for each unit in
the amount of the payments made by ACE.
Based on current estimates, the combined ACE and DP&L decommissioning
trust fund balances are sufficient to meet the NRC's minimum requirements for
prepaid decommissioning funding (with earnings credited at a 2% real rate of
return) for a 7.51% share of each unit. Alternatively, based upon current
balances, the additional funds provided by ACE and deposited by PECO/EGC and
PSEG Nuclear in their respective trusts, if the ACE interests and funds are not
transferred, would be sufficient to be fully funded (when earnings are credited)
with respect to their 3.755% interests in each unit. These matters are discussed
in greater detail in Attachment E.
5. Financial Qualifications
In the Safety Evaluation accompanying the April 21 Order, NRC
concluded that both PECO and PSEG Nuclear are financially qualified to hold the
Peach Bottom licenses with respect to the increased ownership interests to be
acquired from DP&L and ACE. In addition, in the Safety Evaluation accompanying
NRC's August 3 Order relating to the PECO-Unicom merger, NRC concluded that EGC
is financially qualified to hold the licenses for all of the nuclear units
currently owned by PECO and ComEd (to the extent of their ownership shares). In
connection with this NRC review, PECO submitted a proprietary "Projected Income
Statement" (including a "five year pro forma" estimating total annual operating
costs and the source of funds to cover these costs) in accordance with 10 CFR
50.33(f)(2), both in its December 20, 1999 Application and a March 10, 2000
letter providing additional information. This information included separate line
items providing the "five year pro forma" for the incremental interests in Peach
Bottom 2 & 3, to be acquired from DP&L and ACE. Nevertheless, in order to
facilitate NRC's review, the information relating to each 3.755% interest in
Peach Bottom 2 & 3 is provided in a proprietary addendum to this letter labeled
Attachment F (Addendum). PECO requests that this Addendum be withheld from
public disclosure, as described in the Section 2.790 Affidavit provided in
Enclosure G. A non-proprietary version of this information, suitable for public
disclosure is provided as Attachment F.
6. Extension of Effectiveness of Orders
The parties anticipate that the DP&L transfers for Peach Bottom will
close as soon as practicable upon receipt of NRC administrative action
addressing the above-described two-step transaction. The parties respectfully
request that the NRC complete its review of the present request, and take action
to revise the April 21, 2000 Order and to approve revised conforming License
amendments, by no later than December 1, 2000. The parties hope to be in a
position to complete the ACE transfers for Peach Bottom 2 & 3 no later than June
30, 2001.
The April 21, 2000, Orders specify that the ACE and DP&L transfers be
completed by December 31, 2000, or the Orders shall become null and void. Given
the current schedule, and the unavoidable delay in obtaining the other
regulatory approvals, there is good cause to extend the deadline. To allow for
future contingencies with respect to closing both transfers, the parties request
that the completion date be extended for all of the transactions to December 31,
2001.
PECO will keep the NRC apprised of developments in these matters. If
you need additional information, please contact James A. Hutton at 610-765-5520.
Sincerely,
Joseph J. Hagan
Senior Vice President Nuclear Operations
Attachments
Affidavit
<PAGE>
COMMONWEALTH OF PENNSYLVANIA :
: ss
COUNTY OF CHESTER :
AFFIDAVIT
Joseph J. Hagan, being first duly sworn, deposes and says:
That he is Senior Vice President Nuclear Operations, PECO Energy Company, the
Applicant herein; that he has read the enclosed letter, knows the contents
thereof; and that the statements and matters set forth therein are true and
correct to the best of his knowledge, information and belief.
__________________________________________
Senior Vice President - Nuclear Operations
PECO Energy Company
Subscribed and sworn to
before me this ____ day
of October, 2000.
______________________
Notary Public
<PAGE>
[ATTACHMENTS PRESENTING MANUAL MARKUPS OF LICENSE DELETED]
<PAGE>
Attachment E
Decommissioning Funding Assurance
Transfer of Non-Operating Ownership Interests to PECO/EGC and PSEG Nuclear
Peach bottom Atomic Power Station, Units 2 and 3
DP&L and ACE have each maintained their own nuclear decommissioning
trust ("NDT") funds for their respective interests in Peach Bottom Atomic Power
Station, Units 2 and 3 ("Peach Bottom 2 & 3"). Therefore, each company's current
NDT fund balances for each unit vary due to the level of prior contributions to
the trust funds and investment performance. As in the prior transfer application
related to these interests, the current combined NDT fund balances of DP&L and
ACE for Peach Bottom 2 and for Peach Bottom 3, are sufficient to qualify as
fully pre-paid decommissioning trust funds for the companies' combined 15.02%
interest in each unit, within the meaning of 10 CFR 50.75(e)(1)(i), when
earnings are credited as permitted by the NRC using a two percent real rate of
return until the end of the operating licenses for each unit.
The DP&L and ACE NDT funds for each unit will be transferred to the
corresponding PECO and PSEG Nuclear NDT funds in direct proportion to the
interests in each unit to be transferred by each transferring company to each
receiving company, with the PECO and PSEG Nuclear NDT funds each receiving an
amount that corresponds to the 3.755% share of DP&L and ACE's 7.51% interests in
each unit. Thus, based upon the current balances, when the transfers of both the
DP&L and ACE interests are completed, the PECO and PSEG Nuclear NDT funds would
each have balances for the respective shares received from ACE and DP&L that are
fully prepaid within the meaning of NRC's rules, when earnings are credited.
The NRC minimum amount for decommissioning funding assurance for Peach
Bottom 2 is $375,504,999 ($56,400,850 for a 15.02% share, $28,200,425 for a
7.51% share, and $14,100,212 for a 3.755% share). This NRC "formula amount"
calculated in accordance with 10 CFR 50.75(c) using the updated escalation
factors available for December 31, 1999 is provided in the attached Table 1. The
NRC minimum amount is the same for Peach Bottom 3. Based upon earnings credited
at a two percent real rate of return, as permitted by 10 CFR 50.75(e)(1)(i), the
current level of funding necessary for Unit 2 trust funds to be considered fully
"prepaid" within the meaning of NRC rules is approximately $290.3 million ($43.6
million for a 15.02% share, $21.8 million for a 7.51% share, and $10.9 million
for a 3.755% share). Slightly lower amounts of funding would be required with
respect to Peach Bottom 3, because its license is longer and further earnings
could be credited. A calculation reflecting the sufficiency of $10.9 million to
fund the minimum for a 3.755% interest in Peach Bottom 2, when earnings are
credited, is provided in an attached Table 2.
A chart summarizing the trust fund balances, as provided by DP&L and
ACE, as of August 31, 2000, as compared with the NRC formula amount, and
"prepaid" level of funding required follows:
<TABLE>
<CAPTION>
--------------------------------------------------------------------------------
08/31/2000 Unit 2 Unit 3 "Prepaid" NRC Formula
(balance) (balance) Minimum Amount
--------------------------------------------------------------------------------
Conectiv
<S> <C> <C> <C> <C>
15.02%--total 44,775,233 46,201,586 43,600,000 56,400,850
7.51%--DP&L 18,243,471 18,246,878 21,800,000 28,200,425
7.51%--ACE 26,531,762 27,954,709 21,800,000 28,200,425
--------------------------------------------------------------------------------
PECO/EGC
7.51%--total 22,387,616 23,100,793 21,800,000 28,200,425
average 11,193,808 11,550,396 10,900,000 14,100,212
3.755%--DP&L 9,121,736 9,123,439 10,900,000 14,100,212
3.755%--ACE 13,265,881 13,977,354 10,900,000 14,100,212
--------------------------------------------------------------------------------
PSEG Nuclear
7.51%--total 22,387,616 23,100,793 21,800,000 28,200,425
average 11,193,808 11,550,396 10,900,000 14,100,212
3.755%--DP&L 9,121,736 9,123,439 10,900,000 14,100,212
3.755%--ACE 13,265,881 13,977,354 10,900,000 14,100,212
--------------------------------------------------------------------------------
</TABLE>
As already noted, the combined balances that will be received by each
of the Peach Bottom 2 and 3 NDT funds of PECO/EGC and PSEG Nuclear will be
adequate to provide decommissioning funding assurance using the prepayment
method, when earnings are credited. 10 CFR 50.75(e)(1)(i). However, the DP&L
interests in each unit, and accompanying nuclear decommissioning trust funds,
will be transferred first, and there is an expectation, but no guarantee, that
the ACE interests in each unit, and the accompanying NDT funds will be
subsequently transferred. Therefore, ACE has agreed that in the event that it is
unable to transfer its interests and NDT funds, it will provide funding to
PECO/EGC and PSEG Nuclear equal to the difference between the actual DP&L NDT
fund balances transferred, and the average of the DP&L and ACE NDT fund balances
that would have been transferred to the PECO/EGC and PSEG Nuclear NDT funds had
the ACE interests and NDT funds been transferred at the same time as DP&L's.
Applying this methodology to the balances noted above, if the closing of the
DP&L interests had taken place on August 31, 2000, PECO/EGC and PSEG Nuclear
each would be entitled to an additional payment from ACE of $4,499,029, yielding
a total payment due from ACE to PECO/EGC and PSEG Nuclear of $8,998,058.3
PECO/EGC and PSEG Nuclear agree that they will in turn contribute to their
respective NDT funds for each unit the corresponding portion of the payment
received from ACE, i.e., $2,249,515 per unit. When these sums are credited to
the respective PECO/EGC and PSEG Nuclear NDT funds and added to the DP&L fund
balances, the total amount transferred to the PECO/EGC and PSEG Nuclear NDT
funds exceeds the current level of funding required to meet the prepayment
method of providing financial assurance for each 3.755% interest in each unit.
---------------
3 The actual figure that would be due from ACE to PECO and PSEG Nuclear would
of course depend on when the DP&L transfer actually takes place.
Thus, during the interim period following the transfer of DP&L's
interests in Peach Bottom 2 & 3, but prior to the transfer of the ACE interests
(or the determination that such transfer will not take place), decommissioning
funding assurance for their respective 3.755% shares in each unit from DP&L will
be provided by both PECO/EGC and PSEG Nuclear by using a combination of the
funding transferred by DP&L and the contractual commitments of ACE either:
(1) to complete the transfer of the ACE interests and the accompanying NDT fund
balances; or (2) to make the additional payments to PECO/EGC and PSEG Nuclear
described above. In the first instance, the combined balances that will be
received are currently adequate to be considered fully prepaid for each 7.51%
interest in each unit in accordance with NRC's rules. In the second instance,
the combination of the DP&L funds that are transferred and the additional
payment from ACE (which PECO/EGC and PSEG Nuclear commit to contribute to their
respective Peach Bottom 2 & 3 NDT funds) are currently adequate to be considered
fully prepaid for each 3.755% interest in each unit in accordance with NRC's
rules. During the interim period, these mechanisms provide assurance of
decommissioning funding in accordance with 10 CFR 50.75(e)(1)(vi) that is
equivalent to that provided by the mechanisms specified in 10 CFR 50.75(e)(1)(i)
through (v).
ACE's ability to make the payments to PECO/EGC and PSEG Nuclear (if
the ACE interests and NDT funds are not transferred) totaling approximately
$9 million can be demonstrated by analogy through its ability to meet the
financial tests that would apply in the case of a parent guarantee, as follows:
NRC Financial Test for Parent Guarantees
(10 CFR Part 30, App. A, Section II.A.2)
(All dollar amounts below in millions)
Financial Test II.A.2
Source: 1999 Annual Report
(i) A current rating for its most recent bond issuance of AAA, AA, A, or BBB as
issued by Standard and Poor's or AAA, AA, A, or BAA as issued by Moody's; and
Atlantic City Electric Standard & Poor's Rating A-
(ii) Tangible net worth each at least six times the current decommissioning cost
estimates for the total of all facilities or parts thereof (or prescribed amount
if a certification is used), or, for a power reactor licensee, at least six
times the amount of decommissioning funds being assured by a parent company
guarantee for the total of all reactor units or parts thereof (Tangible net
worth shall be calculated to exclude the net book value of the nuclear unit(s));
and
--------------------------------------------------------------------------------
Tangible Net Worth $798
--------------------------------------------------------------------------------
Total Amount of Payments $9
--------------------------------------------------------------------------------
Ratio of Tangible Net Worth to Payment Amounts 88.7
--------------------------------------------------------------------------------
(iii) Tangible net worth of at least $10 million; and
--------------------------------------------------------------------------------
Tangible Net Worth $798
--------------------------------------------------------------------------------
(iv) Assets located in the United States amounting to at least 90 percent of the
total assets or at least six times the current decommissioning cost estimates
for the total of all facilities or parts thereof (or prescribed amount if a
certification is used), or, for a power reactor licensee, at least six times the
amount of decommissioning funds being assured by a parent company guarantee for
the total of all reactor units or parts thereof.
--------------------------------------------------------------------------------
Total Assets $2,655
--------------------------------------------------------------------------------
Total Foreign Assets $0
--------------------------------------------------------------------------------
Total U.S. Assets $2,655
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Amount of Payments $9
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
Ratio of U.S. Assets to Payment Amounts 295
--------------------------------------------------------------------------------
The above information is provided for purposes of facilitating NRC's
review and determination of the dependability of ACE's contractual obligations
to PECO/EGC and PSEG Nuclear. No specific guarantee from ACE is being provided
to the NRC or is in any way intended or implied.
In accordance with 10 CFR 50.75(e)(1)(vi), this combination of
mechanisms provides assurance of decommissioning funding during the interim
period that is equivalent to that provided by the mechanisms specified in
10 CFR 50.75(e)(1)(i) through (v). Following the transfer or ACE's interests or
ACE's payment to PECO/EGC and PSEG, the decommissioning funding would be prepaid
in accordance with 10 CFR 50.75(e)(1)(i).
<PAGE>
Attachment F
Projected Income Statement
(Non-Proprietary Version)
<PAGE>
Attachment G
AFFIDAVIT OF JOSEPH P. HAGAN
I, Joseph P. Hagan, Senior Vice President Nuclear Operations of PECO Energy
Company (PECO), do hereby affirm and state:
1. I am authorized to execute this affidavit on behalf of PECO.
2. PECO is providing an Attachment F (Addendum) in connection with the
transfer of certain interests in Peach Bottom Atomic Power Station, Units 2
and 3 (Peach Bottom). The information being provided in Attachment F
(Addendum) includes PECO's financial projections relating to the interests
in Peach Bottom 2 & 3 to be transferred and constitutes proprietary
commercial and financial information that should be held in confidence by
the Nuclear Regulatory Commission (NRC) pursuant to the policy reflected in
10 CFR sections 2.790(a)(4) and 9.17(a)(4) in that:
i. This information is and has been held in confidence by PECO.
ii. This information is of a type that is held in confidence by PECO,
and there is a rational basis for doing so because the information
contains sensitive financial information concerning PECO's projected
revenues and operating expenses.
iii. This information is being transmitted to the NRC in confidence.
iv. This information is not available in public sources and could not
be gathered readily from other publicly available information.
v. Public disclosure of this information would create substantial
harm to the competitive position of PECO by disclosing PECO's
internal financial projections, related to a unique transaction,
to other parties whose commercial interests may be adverse to
those of PECO.
3. Accordingly, PECO requests that the information be withheld from public
disclosure pursuant to the policy reflected in 10 CFR sections 2.790(a)(4)
and 9.17(a)(4).
PECO Energy Company
____________________________
Joseph P. Hagan
Senior Vice President Nuclear Operations
COMMONWEALTH OF PENNSYLVANIA
COUNTY OF CHESTER
Subscribed and sworn to me, a Notary Public, in and for the county and
state above named, this _______ day of __________________, 2000.
_________________________________
My Commission Expires: __________
<PAGE>
Attachment F (Addendum)
Projected Income Statement
(Proprietary)
CONFIDENTIAL
CONTAINS CONFIDENTIAL INFORMATION PURSUANT TO
10 CFR 2.790(a)(4), 9.17(a)(4)
