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EXMEBIT E
PPaiWO "(ORTH NINTH 5T255 T, iLL5NTOWN, PA. Ialol )HO'(E( (2(5) 52 I ~ 5'l5 I
Februa~-9, 1979
lir. William !i. Zel'nskyElectr'cal EngineerPowe Supply Analysis SectionOffice of Nuclea= Reactor Regulat'onU.S. Nuclear Regulatory CommissionT(I'ashington, DC 20555
SUSQUEHAViiNA SESREQUEST ."OR ADDITIONAL T(('OWATIONER 100450 PILE 841-2PTD- 3ZI
Docket Nos. 50-387and 50-388
Dear !ir. Zelinsky:
The attached information i.s in response to your letter of December 11, 1978.If you have any questions on this material, please let me know.
Very truly yours,
21G/cak
790 'Oor'?"".
acg~5T( VASIp )O'N52 g 'O'(I 2 rOH)A>,
'«%o initiat d the pu=chase of the elec=" c properties ofEEC'? Way~
See Item Ll, Pages 5 and 6, and Item L4, Page 7 of PPGL'sapplicatioa to the Pennsylvania Puolic Utility Commissionfor approval of the pu"chase. Copies of this ~ormatioaare attached.
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thereof af indebtedness az 2C to Hershey "-states. PP5L estimates
tha- the total con'sid rat'on wh'ch wiLL oe payable by PP4L to
Hershey Estates for the cap tal stock of HZC and the Not wiLL'mountto approximately $ S,000,000 including the .epayment of debt.
Consummation of the proposed transac 'on is to be
completed on the 30th day (or the next business day i= such i0th
day falls on a Saturday, Sunday or holiday) after the date when
the last of all necessary regulatory approvals has been ". c 'edby PP$ L, unless a mutually agreeable earl'er date =or th closing
of the proposed transact on is established by PP4L, Hershey usta-es
and WC.
11. The Purchase Agreement resulted ==om arm'-lengthnegotiations bei~een PP)L and Hershey Estates, Hershey "-stat s
having f'rst contacted PP4L in ApriI 1975 to adv'se PP(L of the
intention o= Hershey Estates to sell i.ts interest i H:-C. At tha"
time, PP4L was advised by Hershey Estates t.'cat Hershey "=states was,
in add'tion to contact'ng PP4L, in communication with 'Metropolitan
:"'dison Company Pfet Ed), and that proposals to purchase thcapita'toic
oz H C would be reauest d by Hershey usta es ==ax PP4L and
Met Ed. Pollowing a series af meetings in which ..4L " auestea,
and He-shey "-states and HEC suppliedp in armatian wit% res~ect
to Qe facil ties and operat'ons ax p~C) . qL subm tted a'proposal ~
aated. Gc-aber 7, 3.975, a copy o= which is attached her to as
Exhibi < and made a part her o=, to purchase the cap'tal stock
a i' ar cash Hershey =states, by letter dated Cctaoer 15
19 7$ p a copy o = wh'h is attached hereto as 2.-4ib ': L and made
a part he= of, acc pt d the o="fer suomitted by PPjL as the oasisfor negotiation of the Ag cement.
12. HEC, having no gene ation capab''ity of its own,
currently purchases all of its requirements =or el ctric gave"anc'he
ene gy assoc'ated ther v.'th, ~rom )et 2d, a subsidiary company
of General Pub 1' Uti' ties Corporation (G?U) .
L3. A 220-69 KV substation of ?PAL is Loca" d appro-"-mately tvo m'les ~om He=shey and the electric facilities o=
HZC are capable of ohysical interconnection with the faciliti s
of PPgL. PP4L plans to effect such int rconnection a a
future date by constructing a transmission line ~rom its 220-69
KV substation to the facili ies o= MC in Hershey. Tt is,however, PP5L's current. intention, provided that the negotiationscurrently being conducted between- ?P<L and Net "=d are succ ssful'yconcluded, that, until the loads served by hcC increase to'.a<po atrequiring the instaLLation of additional faciliti s,~?owe:.,r qu'r c
by HZC will be supplied from PP5L's system ~Hough ei's- ng'trans-mission =acil'ti s between Met Ed and ~C under cont"actual;a —..an-e-.
ments to be filed w th, and made eff ctiye by,~~ Pede al.?owerI
Commiss'on under the Federal ?over'ct,,The 'zacilit'es o= PP4L and those o= Net "=d ar
phys ical'and Met Fd
as memoars
rconnec=ed at a number o" 1ccat'onsoperate the'r fac'1'ties in conjunctiono= the P 'M Interconn t'cn.
and oo:n PP4L
w~ ~5 each othe
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It is also PP4L's 'ntention eventually to merge
C into PP5L and, ollowing such merger, to maRe the appropr=a:PP4L- rates applicable to HiC's customers.
14. PP4L bel'eves that the proposed transaction is inthe public nterest and in the int rest of investors and consumers
becaus the completion o" the proposed transaction will t nd toward
the economical and efficient development of PP(L's integrated-e4ec ric system and that ultima e'y the rat s which PP4L charges
its cmtome s will be made applicable to the customers o= H:-C, such
rates presently being lowe" in general than the rates charged
by h=C o 'ts customers and lowe than the ra" s charged by
Met id to the retail customers o" Met "-d. PP4L also submits
that the consideration to be paid by PP5L to Hershey estatesfor the capital stock of HEC bears a fair relat'on to the sums
invested in PZC and to the utility assets of HiC uxderlyipg 'the
securit'es proposed to be
'y PP4L of the securitiesacquired by PPCL; that the acqu'si 'on
of MC will not unduly compl'cat the
capital structure of ?PAL; and that the proposed
not be detrimental to the public 'nterest or the
t.ansaction wi'1'I
ts rest oIinvestors or consume s or the prope. action'ag of the P?4L
system.
15. Under Section 9(a) (2) of the Publ'c U ill "y Holdin ~
Company Act of 19'~, as amended, the proposed tr~wsaction rust be
express y authori=ed by the Sec. rities and "=.".change Commission.'
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edward R. 3ock, Chairman o=~Be 3oard and. President
Hershey "=stat sOne Chocclaz .IvenueHershey, Pennsylvania 17 033
Dear TIr. 3ooR:
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TWO HO tTII HIHTll STREET, ALL~HTOWH, I'A, I4I4l
Qc-aber 7,'975
tIIOHKa <11SI $ 2 I ~ HIS I
Tn accordance '~Tith yaur recuest, we, hereby macea firm of=c=, wh'ch you may ac" e~z by del'very to us o"
yaur acceotance in wr''ng by Octcoer ~, 1 i S, io a qzrom Hersney ""sta:.es all ciT the ouzszan~"'ng capital stcc.
= Hershey ='eczr c Comoany (H"-C), cansis-in'= 714 sharescr" common szoc.'i, par value, $ SO, =cr a bas prie o" $lus or minus aIl «Lmounz ecT al to the chang in the eauity o=
2C from Dec aber i1, 1974 to zhe SzazemeKz Date (as ner 'n-afte~ d =ined) as d t rmined by applicz-'cz o accounting4 'lw
~ ~ol'cies and pracz ces o F~C .n e==ec- =c-. 19'~. Pen.".sy-Yan'a Power e L =hz Ccmoany (>P~L) wi ~ ~ aLso a"rang ccin-
dent With the Settl Rent Date (as he 8'na e c ines 0zhe repaymen" az par oz alT debt o= H:-C o~~e 'c H rsvp yestates or financed cn Hershey cszatesl cree'.
We unders and and aper c.'at your des-re, assumingyau acc pt our offer, to complete ~Ie t ans=er o= F~C's szcc.ct PPCI. as soon as practicable. You have suggest d a Sett e-ment Daze for this transaction of December IS, 197S based cna closing of MC's books on November 30, 197S. Your sup-".esticnsia t'is ".edward are entirely satisfactory to PPcIL, pravid d
'~a -he requisi" regulatory author za icns can be ccza nedby December 10, 3.975. PPclI. wiIT, c= caurse, use izs best
. efforts to obz 'n the "'egulatcry author'=azions as "rcmoz yas possible.
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However in the event zhaz such regulator -'hortions cannot be cctzined by Dec moer ', 1575, we be 'e
. is aoorooriat to establ'sh a means for determining w..en~ esett'ement Ti~ll ta'ie olace znc the =inancial. szazemen = on~ (
~ ~ g ~T.'hich it wiII be based. i'le understand tnaz, except =cr .he'e~'od ended Dec "e= ~1 o- eacn year, =C s oo'<s a
T Wt 4Yery fourth Meek In zhe event th" I zne egula~c l «L i cns a" no" cb ta- wed by December ~ 0, 7S, he s e
be base I cn z'-e first closing o='2I".'s books "¹c.'. occ'sa=ter the 1as c" alT rec 'size r platcry auzacri=ationshall be ". c ived oy PPIIT ..his da" e .s de=inec as the
I'EHH 5 . L'(AHIA GOWK C T, ~ I CP i CO&l'AHT
"-dward H.. Bcoz,, C.". rman o"the Board and President October 7, 1975
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S„a" ment Daze and the fin~".cia state ents as of theSza.em n" Da will 'be used for adjusting zhe base pr ce.
~ pt.your opz"'on, ycu may chcose zo close H=C's bao'<s iz e="azly'ollcw'.".~ " ce ' t oy PP 4L o= zhe ". gul". tory auzho ri=az'n andw'aut "a'zing =or the end of a -. gular accounting per'oc.
you'haulc so choose) sucn arly closing 07, o C s boocswould constitute 'the-St" ze enz Date'cr base pr'ce. adjust-ment. The Settlemenz Daze, i. e., the date cn wh'h PP4Lwill purchase H:-C's szac.'c, rom yau, wil'n any event be -heel venzh business day a=z r the Statement Daze.
Ne recogni~e "be need or eszxzazes in prepar.ngthe Statemen Date =inancial sta-emenzs because o= 'tire ando aer pract'cal l~izaticns. Fur her~.are, ~e e.acz effectan Qe incame of pr'-. pericds a a number o= items, includi g'sax responsibilities .can on'y be dete~'wed. in the 'ident offuture developments. Hawever, the amaun- o" this casn of=er,
..as defined in the f'rst paragraph af this 1 tte», is. based on'u- r 1'anc on the accuracy o= the financ'al sza'zements p-'pa.ed by H=C as o= the Statement Daz .. The amount o",.th'so==er also can- mplaz s that unused "ederal investment tar
" c ed ts not usaole 'oy .". rshey =states in ' s ccnsol idaz a.".,returns .~ill be available. to H:-C afz» 'trans=er to PP4L oftNo ownorshig of the %AC star( ~
Therefor'e)" in'ccordance w'iA our previous dis-'. cussions, we would ewect He shey Eszat s to be responsib efar the oayment of all 'pr-or periad expenses and 1'@bi'2.ities,includ ng tax assessmenzs relat'n to such pr'cr periods,
',unrecar" ed by HZC as of the Sta ement Daz . Conv rse y,Hershey ""states would be enti led to rec ive from.F~C aaaymert quivalent zo income o'r asset 't. =s, including z-
.." =unds unreco ded oy H:-C as of the State .enz Daze. However,~ no.adjuszmenz would be made zo elect-'ic reve..ues (cr thereceivables there ram) recorded in the per od ended withtie Stazemenz Date.
The adjustments contemplated iz zhe prece 'ngparagraph will be based on sza" ments furn.shee by e'therparty fram time to time. However, nc adjuszmenz w 1 berequ'red "ar any ''tern, other than taxes) which aecomes .'c.ownlucre than 6 mcnths a=z -. zne Stat men- l".aze. Adjuszmenzs
0requi"ed for zax re-u"..Cs ar zax assessmenzs) .zc ~ c'.".g inca e'ta-es,.;vill be made for zhe nez'ecz of any items whichbecome 21aM? Unzi 60 days a-z r: nal Se z e ..'Iz w z;1 'leLaze..lal Revenu Serv c and t.'le P nnsylvan 3 D parzmenz 0=Revenue a=. za". r zu s involv'ng ."~C.
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~ gr'.'edward R. Book, Chairman ofthe Board a d President 0 $ » October 7, 3.975
't wi1 be necessa~ =or Hershey "-states to ta.'<steps to p."ctect the accrued pens'on r gnts o= H"-C emp'oye scontinu'ng wit.z H:-C. )'le suggest -.""s ce dcne oy a trans=e"to the PP4L Pens on Plan Trust o= th peas'cn assets ap=l'-cable to employees cont'nu'ng with:=" as of the dat "NeP3C stoc!( 's s o.'.d. PPPL would chen assume a'1 futu— Pensionliabil'ties o= P~C employees. Plan assets Co be trans "erredshould be that propor-'on o='tota'lan assets tnat theactuarial liab'li"' fcr accrued benef'ts "c. Cransf rreQC employe s oears to such liab) lit' for all Participantsin the Plan, su'opec" to approval c" the P ns cn Benefit
.Guaran y Ccrporat-cn (PBGC). )')e wou1d emect Hersh y "-statesto ef=ec= ap"ropriate amendments "'o the Hershey Plan and ofile.with tiNe PSGC as nec ssary to ma!<e the trans"er valid.PP4L wou3.d be .responsible fo apprcpriate amendments o" itsWan..
'Ãe have based this of=er on 'Ze informat'on 'you..have urnished us and, would und rstand that, if you acc Pt
this o = r, you wi11, by sucN acceptance, be repr senti..gtc us that ».
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1; Subsequent to December ~1, 1974prior to the Settlement Date:
{a) there h"s been and. wi11 be no changein the business o= HiC, or in the financial
; condition or prooer ies thereof, and H:-C has .
not incurred any ob3.igaticn cr liability,'adeany disburse ents or .entered into any
transactions other than obligations, liabilit'es,disbursements and t: vasactions occurr»rg in thecrd'nary course oz bus'ness, none o" wh'ch hasbeen or will be materially adverse;
~ (b) hcC has not engag d 'n or been.-threatened with ary l't'gat'cn or anygcv~~mental prcce dings not fully covered
~ by insu anc, wh'ch would give rise to any'material claim a ainst i- or any, o= itsproper- s;
I
(c) ne'ther.you ncr F=C sha11 have~ "g anted any Person) firm or cor-cration
{oker than PP5L) any opt'on, wa=r"nt oright to Purchase or to subscr ce zcr any .sec"r'ty o= ..ZC;
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ccc r ma ze ble la c a'z's~ '. en,
asse -s ) uo.'c: cc'
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c. wn» «» ') w e«n»)««« I »»» '\ Vl»
PQCI)»na«
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'ment, exceat 1iens -"or tax s, the Payment of which's
not yet delinquent and miro" ns o= a charac-ter which, in the aggregate, are not subst~"tial i"amount, co no- ma: axial'y detract from t~ value o"such assets or mat rially iwrair the operations o=the business now cond cted by c-=C and 'which havenot ar sen othez-~ se than in the ordina~ course oxMC's business;
3. h:-C 's not a party to or bound by a..ymater a'ontract, 1 n or agr nt, e.-.c at con-tracts liens and a~r ments pr viously =u=n'shedto PP<L, and custcma-.f ?urchase orders; none o=such contracts, 1'ens o. agr ments mat -. allyad'r'ersely a== cts th business,'perations, oron-erty or adc't'on, financially or othe-.,~ise c= . =C,and F2C 's not ia default in the payment o= any o=its. obligat ons o- in the perfoaa ce o= any covenan=or obli'" on to be perfomec by i: Pursuant to a y .
such contracts, 1 ases or agreements, and each o=the con.rac=s =or t.".e Purchase o= Po~~er by HiC o-for the r ..c't'on o"" services to .-.=C having aduration o= d'or than one yea= 's terminable 'withinone yea- without penalty to 2"-C or, subsecuent to
Set erne Da e> Q PP(T ~
4. You are, and iaaecia e'y a= o- the Settle--ment.Date ?P5L wiLL be, the t~ie and La:v=uL o:ver o=the shares o='F~C's stock, =-. and c'ea= of all 1'ensand encumbrances, charges, clai~ or restrictionsvhatsoeve
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S. Hach o= th.. Shar s o=" 'r.«C's stock is duly'uthor =ed, va'dly issued w".c .outstanding, =u Ly pa"dand nonassessable;
~C is duly organ'=edmd in good sta.-.cine '-."er the~eaLQ o= ?ennsy" ~'a; and
va' ~'y e."..s-.wg'awso= the Com=on-
7. 7hc 7 4 sha=es o= '."=C'schased bv»" c—s---z- a' o-
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be'".g pur-ou st3 c~c~g
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ard R. 3oo!c, Chairman ofthe 3aard and P+esident October 7, 1975
To assist you in evaluating this o =er, we haveoutlined be'ow hcw .. 6L would gene"a'y propose tc banal
fsame o= the z.ajar aspec s 0 11 g at? lg . C in a QL>' our o== r 's accepted.
PP4L would plan ta continue P:»C as a separatecorporation "or ~ little mare than two years and to coerat
. the bus'..ess suostantially as a- presen" w'th t.".e sameemolcy s ana, under misting rate tari "fs. A principalabject've w ll be to acnLeve m~n'iMX dJsturbanceemployees'nd cus-arne s.
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3. Facilitates the ma'ntenance o= ~C's,current r"te tar~z=s.
~ The decis.on to temporal" ~y 'continue.'th presentco po at fora and operatians.pos- = has'e n basec on thefollowxng advan"ag s:l. Avoids i'ncome tw. Pe"alt'es.
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~ ~..Z. Fits'n with the tNa-year pe iad ".
quired to construe fac'lities toprovide a rel'abl pc.ver supp'y directlyfrom the PP(L system.
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Provides time =o= the orderly planningand inte. rat'an o= ~=C ope at'ns andproc dures 'nto the PP4L system.
Provides time to work out d'fferenc sbet veen 8:"C's and PPCL's wage levels,
'mployee bene='ts, union contractualprovisions and other employee relat dmatters.
PP (L would assume responsibility for a' c= -theE~C full'-time employees wn: ch <ershev <states has 'cica edit =e ls aporopr=ate to transfer. T." 's particular yimpartan= t.'".at Donald 3. C:".uob, General i~ianager, and h's¹y ma a~4-s r ma'n v'~ ."~C 'n arde= ta achieve th pre-v ously stated oo-'ectives a= PPCL. Ne have be n imp= ssedXy the c pab'' 'y c= ~fr. Ch ab and be i ve he w'rove
~ o be v "y valua~b3.o 'z I==C's or"e.ly transition ta ".': PP4'ystem. ™e also appears to have gcod potentia~ ta ass'ekorea-er —. s=ansib'ity in t.'".e lardier P~' system aft "int ~ration has be n comple ec. ii'e are nat
=am'Q
Qbil ty and ootent' o= ot.':er managers ai ~ (a emu'yees,but they also w' l be g.'ven eve g opocrtun'y to assumegroa= -. esocns bil ty unde= PP<L.
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pdwa d Q ~ /ca k ChaL'iilan or~ the Board az:d President ~ «Q» October 7, 1975
Review c= wage aG8 salary levels Ln&ca.es have s are gere".ally a 1't h'gher« than those o"
gC, even ~hen aajusted =or cont=icuticrs ". cu' aplo ees to oP4L's pension p'an. Her~ever, PP4L is
p-" 1~>isa"'~= -Aese e~~laye "s oension can"-.=-
b v t'.e nert Zew years. -Li'apewise, the employe'a'>ea oy PP5L employees appea to ~e more
"" "=" when ta.'c n as a who].e. ine aen a cahan -nose c" .=lan o" .'-'"-C seems to be the only'igni-"icant oene=it ei
has no" been adopted by PP<L.~ '
The rac- that both the salary levels ana employeele led" ~o'L "- -ore oeneraus than t'arose a..=~ she"bene res or . <L «t1 r~~uctance a= emaloyees ta trans"er rram ~he
He shey environment to PP4L, particularly sine, =o.1 " -'1ere would be no relccation. o mployees.
On the ctner ha.".a,'ra t1~ d'="er nce in salary and bene-ls does not a-pear g-.eat enough to have a.".y s'gni= can
ac" on '.-.'ershey's laoc= relat'ors ..»ur .'.e." the trans'tian =ram H:-C sa'ary are be.. =it
ed everpolxc's o those az Po4L can be ~radua y accamp 'sha twa ar more yea perioc'..
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~ levels o= elect=ic rates or HZC customersru ure eou salev~rz important canseauence ta consiaer 'n your sa e
1 Oo Tl@5 Tcf t e ~ uu . ~h H"-C car-cn stock. ITt is our understanaing a... yP bl'tilityCommission (PPVC) po ~ cy aha HE
rates cou d be continued in er= ct by P. < a'as a separate ron-interconnect a company,
~ proved ng the perz.di g "'eriad is s reasonable ane as we ccn" empana P. 4L wou < o a. 'iPP4L» ~ z'"o con"inu such rates. howcv ", once.
HZC system is Physically intercor1ected tc tne .. 4L»UC ~auld orobab'y '".sist th"t ..4L system
rates be applicabl ta HZC customers and .we wou a pswitch to oP4L system rates at tha" time.0 r
PPCL 'gen 'rally has aoou- 'the cw s rat sPennsylvania =or all classes c= se r'ce ana is aea'c tt 'a"a'a~ th's ". 'xt've pas'-ion. 'de have made a
P -L andcompar'scn c= t-e res~ective rate 'e rels or;.r~,~ht 2d and -' relationship o" the rat 'ev s othree camp"n'es -"e shoim. in:-xhibit 1. Th'5
e.~.ib'"-~-r"t s currently ~ n er=ect ana us ng1nd2eca e» y ++4+ s al «4 o «sPP~L>September 1975 =uel adjustment c'"use charges, tna-
rates ar abcu- 17.8" 'ower and that Met =d s rates arabout 3 7 ", lower t.".an H:"C ates .
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~ Nr. edward R. Book, Chairman o<"he Board and President Oc:ober 7, L97S
~ (( ~ ~However both PP4L and Met Pd have pena ng ra"emr- ase r=q es-s u.".d r suspens on oy t" ?P4C.;ne sus-
t ~fa.ci 'r0 |;976 and '= the =~r "dd t=ona 'ncr ase o=15.Z-; is allowed, PPCL's rates wou'd St '1 be aoout 8.1 wer -ha1 "'ze ca"rent .'"~C rates. On th other hand,ac ord'ng to info—...ation availabl to us, i= tne ..a3.lo~)'s the full incr4zse reauested by )))et ~d (statutory"sus er's'o pe iod e~ " d in une 1975), )tet id ra:es wou'd
ea to b 4 ao out Z 5 ~ 7 g h gher. han tn4 curr . t g. ) ra) M ~
Zn add'tion', PP4L is ve~ co sc'ous of tne e"tr me yl4v o" serv" ce reliabili g.needs o" 2:-C's c'tomers~ 44genera'ly, as we11 as the par ic 'lar needs o= many o= he...
8e currently have very ampL ger. ration reserv s -nd .".geeto maintain th's strong generation postur witr the add't'ono rour a""~e generating un'ts now under const=~ction. These
ops's" of 850 mw oil un's schedu'ed to be placed inserv ce later th's month and in 1977 and 10~0 mw nvc ear uniischedu'ed "or 1980 and 198Z,
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Cur respect've service territories abut and ourterccnnection const uction and operating plans caLL for
<'-hin~ api maintaining a LeveL o servi.c reli"b'1'tyestao .s . . t"at, least as high as the fine service HZC s customers p ~ yres entlen'y. eN will be pleased to have our tec~sical personnel
. review our specific plans with you.
Thais you for the opportunity to suom t th.s pro.-posal on a competitive bas's. Ne would 'oe pleased to meet1th you any toe at your conveni nce to d'scuss furthe)s J,trh g ou KiLI
deta" s o= ~~is oz=er,
Very -rulyyours,'WitSYL~fANLA
PG'F23., ~ By:
LIGi:.T CC)"~~A.'K
At"achmen-
lee rQs 1cen t ) "1nanc1aJ.
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t T.f btinnoun ta7ount
Eff. 9/24/75 $ 68141,)46Q ;730',945,549$ 5,120,983
1,798,967
270 300 . '15.467.
7 190 338
335 307
~8422 002
200 200
Sue.Up. 6/26/75778,389 $ 36.9% 2,266,083
41 099 'Q 5.462 123~728
819 188 2 389 811
I DD9 826 ~ '0011 813e
(1,552. 787) ', " {321 1238
- (17.8%) ... '.; .. ($ .72
~ ~
e i
t ~
a ~ ~ ~
~ ~IncludlBlg 1'ending'Rate Rcqueeteh=.f3 4'n tPi:LcIent
,~
~ ~ 'e ~
;{733,299)(8. II%)
2,068.68'3.77
~ '
8~ e
~ ~
5
* '
\
~ ~
~ ~ ~
~ ~
~ I~ ~
~ e ~
~ ~ e 0~ ~
~ u ~ ~ ~
~ e e ~ ~~ ~
~ ~
~ oe ~ee ~
I~ 5 ~~ ~
- ~ !~ ~ ~ I, .'
~e
~$ I
~ ~~ ~
e 5~ 5
~ ~
~ ~
~ ~~ ~
~ ~
4
~ ~
~ ~
\ ~~ e
de
CONPARlSOM OF RATES~
~ ~
' 'BASED OH 1974 S/ILES OF 266 ~ 5138 6N'ill),'I'l'K
.'t3oun t
Beec recce Eff. 6/20/75 $ 6,536.077 Eff. 9/13/75Rued 62d]ueta3cnt cfnuec (9/75) ',' Q .7534, 2,006,8II8 (L .675'
Tax Surcharge Q3.0637. 95.28%~ ~
\~
'~ ~
~e
Total Rcvcnuee"- 8 743,125I ~ ~
Efface o Pending Rate Raqueete UnderPUC Su pension ' - . ' Sue.lip 3/20/76
8.2:ic rece$ ~ ~ 915.27..Tj» "urcherBo ~ ' '.:
Q 5.285 "~ ~ ~
Tural Revenue RcqueetaUnder SuapcneLon
Torel ueueuuee lf Iloro ReDueero hllojrod '.. ~ ' " 8 743~325
Rcvcnl:i:e Ovl:r (Under) llEC ', '~ ~ ~
Cur84:nt Rarae ~ ~ e
hl:ountPeccant I
~ ~
I,I
I'
~l~RvNfd Ro 30ok Octet; D, L973&airman of the Hoard arA oresideng'17 534 -3C99
ONE C'i"QCCLAt~ AV HUE. ~ HERS'r! Y, F+:JNSYl VAJA . i70 3
C
o~ «4Vice Q»e«$4PennsyLva~ Pc~e" 6 Xicht Ccmcany2 itasca N'"."5 S~ ecALLe"."~< PwmsyLvania MML
Cea K .o e
This a LL acWmLedqe ~ceiot o= ycu= ~m~e ca"ed Combe" 7:973,in which you ~ce a. f= c=f = a ac= 'e ==~ He"shey =s- "es a'f ""e cu"-swed'zg cx-i-a' ac!c of He sney «Lace ic Cowl a. 7 ~ The 3CQ d a Oi ~c a s cfHech y -s tes ".a au"hc"i"ed "..e, a acceoc yen= o= e»« 'a o".'ecicL sub-:ec" a
4the c"ar"'~g and execu"'cn o a. ant-~Ly s*"-'s~ac-a«v 'cz~ A~ee" n- o4 Sal~ between the oa~'es ~
The of "'ce=s of Hershey "-st:ates a.".d caunseL a- the C ~qv q-'>1~ g ~ ~ava.~le tc ~eet ~i«D ycu '~heneve» necessa=~ w a"de= ""at a fa~wL Aq e«~-
o~ Sale may he pzs"a»ed and At apaL'caticzs =a "ecu='ad e~zza r auohc '-boo
cns cay he ~it 4d at the ea="es- ~ssML ca-es.
Me "'xQc yau ar you= cf"e= a:.d ~act a=aa"d ~:i~%".g vi"'" vcu.
Lx The So't Gf '76,
cd% as%Ccs X V ~ii 0 ~
'H ~ RB~ 5«Si A»
*C
r. o
scient
<ayeNaMe=SC'4«4rlp aqqs~er«eo«cenu~l
«4«o
h Ccigcia!icn ("vis«nces Cue!i(y 5e."Iiccs (cr:.".e ~-mmunny pro is '/i"slu»-aiciramn:eni —iien;cue r —) 'c. c r.;;: ncs-i: —l::.n:.es
Question 2: Vie have already reviewed the Security and vmchange Commissionrecords concerning the protest of the Metropolitan EdisonCompany (Pile No. '703839) to this acquisition. Therefore,additional information concerning this intervention isnot needed. However, ve vould appreciate informationdescribing any other ooposition to this acquisition.
Response: There vas no other opposition to th's acqu'sition and, asthe record should note, Metropoli~ Edison withdrew itsprotest.
Did HEC request any type of powez supply coordination orelectric service from PP&L within the year pzececUig itsacquisition by PP&L. If so, please descr.'be the natureof the request, including PP&L's response.
On My 28, 1974, HEC requested the billing charges basedon an applicable 2P&L rate for the HEC system load orvhich the billing detezminants were provided for a 12-monthperiod. Polloving PP&I,'s response, additional format.'onwas requested conce~g PP&L's ability to se~e HEC-and under what terms and conditions. Engineering andrate studies veze undertaimx by 2P&L to determine feasi-bility of PP&L supply, estimated costs and. rates. Puzzlerdiscussions vere held with HEC after it was establishedthat PP&L supply was feasible. However, in April 1975,the nature of PP&L's studies vere modified towards thequestion of acquisition rather than wholesale supply vhenit vas advised by Hershey Estates of i s intent to sellits int est in HEC.
Question 4: To the bes" of PPK's, haowledge, did SEC reques" any typeof electric service from other bulk power supplierswithal the year preceding its acquisition by PPSLP If.so, please describe (to the best of PPGL's hnowledge) thenature of the quest and the responses to these requests.
Response: KC had not requested any ~e of electric serac fromothe bulk power suppliers within the yea preceding itsacquisition by PPH..
Quest. on 5: When is PPK planning to integrate the REC electricfac'lit'es vith the rest of PPK's electrical system~ We
also would appreciate additional information concemiagPPGL's and AE's response to Item 1 (h) oz RegulatoryGuide 9.3.
Response: The HEC electric facil'ties are planned to be integratedwith the PPGL system on birch 1, 1980.
In the response to Item 1'(h) of Regulatozy Guide 9.3submitted in August, 1978, zefe ence vas made to severalon-going negotiations. The responses to Questions 7 and8 addzess the status of four of these negotiations. Thestatus of the remainder is as follovs:
a) GPU request for 500 MW of Susquehanna output from1981 to 1984 - negotiations aze continuing,
b) Request for 12 kV service to Sullivan County REC-negotiations aze continuing.
c) Request for 66 hV service to Borough of Pezhsie-Tezms and conditions vere developed and presented tothe Borough of Perkasie. PP&L is waiting for adecision by the Borough.
estion 6: 'w'hat were the reasons cit d by the Borough of Lansdaleand the Borough of Zutz own as to why they did not acceptPBK's of er to provide them with elec "ical services'
Response: The Boroughs of Lansdale and (utztown never providedwritten rejection of PPGL's off " to provide electr.cservice. Prom telephone conversations, the costs asso-ciated with the changes and additions in service facili-ties necessary to acc ot lectric se~ce from PPH,and/or the wheel'ng charges of othe ut.'1't'es for trans-mission serv„'ce combined to make the offe apoear uneco-nomic at that time.
Question 7: Please describe the status of the negotiations betweenPPSL and: ',
(a) the Borough of Lansdale (foz wheeling)
Response: On January 9, 1979, PPGL provided to the Borougn ofLansdale an estimate of the charges for wheeling andrequested that a mee~g be held to discuss the situat'onfurler. Zo. response fzom the Borough has been receivedas of January 30, 1979.
(b) the C'y of Vineland (for ownezship and/or purchaseof capacity and energy from the above captionedunits and/or other generating facilities).
(c) the Atlantic City Electric Company (for ownershipand/or firm pu"chase of capaci y and energy from theabove captioaed un'ts and/or other generatingfacil'ties) .
Response o The status of negotiations with the City of Vineland(Vineland) and the Atlantic City Electric Company (ACE)is unchanged- from that reported in August, 1978. En theinterim, PPGL developed proposals of terms and conditionsfor the. various transactions being contemplated. Thesepzoposals were presented to Vineland and ACE in January',1979. The primary interest, of each is in a firm purchaseof capacitv and «nergy from Susquehanna SZS rather thanthe pruchase of an ownezship interest.
Qllcstion 8: Please advise us of the status oi the negotiations betweenAE and Ae Southern &~land Elect 'c Cooperative, Inc.,concerning joint ownership in future generating facilities.
Response: The following response was provided by AE:
"Allegheny and SHECO held a meeting conce~g a possi-bility of S&CO participating jointly in generation plantprojects with Allegheny. It was found that it was noteconomically feasible for StECO to pazticipate inSusquehanna or any other projects now being conside ed byAllegheny. If any &xtuze projects are found to be feasiblefor joint participation by Allegheny and RICO, Alleghenywill cooperate with ~CO in developing a joint pazticipa-tion agreement."
Question 9: Shen the negotiations, referred to in Questions 7 and 8,'are completed, please furnish us with a description ofthe results.
Response: PPK vill fuzn'sh a description of the results of thenegotiat-'ons desc .bed in the response to Question 7 whenthe negotiations are concluded.
AE's response to Quest'n 8 desczibes the completion ozthei" negotiations with S?KCO.
Ques ioa lQ: a. List the electric facilitics acquired ia l974 byPPGL from the Borough of Steeltoa aad the Towashipsof Svataza, Lover Svatara aad Der~, Dauohia County,Pennsylvania.
b. Describe chc circumstaaces under which these facili"ties vere aequi"ed.
c. 'was there aay organized opposition to these acquisi-'ions? lf so, desczibe who was the oppositioa,andwhat veze the issues involved.
Response: No facilities were acquired in l974 by PPK from the3orough of Steelton and the Townships of Svatara, LoverSwatara and Derry, Dauphin County, Pa. However, facilitiessituated in the aforementioned 3orough and Townships wereacquired fzom Metropolitan Edison Company in 1974 by PPGLfor purposes of supplying 3ethlehem Steel Compaay aadre~ozcing supply to PPK's Vest Shore 220-6o sV Substat'oa.This matter is more fu3.ly explained by the filings beforethe Pennsylvania Public Utility Commission and the .edezalPower Commission, copy attached.
2iG/cake
May 8,
i97-'ir.
L. L. 'Nonemakeri>Ir. A. J. Baldwin~~:VL. B. ". Hi11
Mr. G. =". Mc>airMr. G. r. grande"-slic
.Attached, for your ~or-.a~on, is a ccoy oi an
A,polication iQed on 'oehali oi P98:E on May 3, 19'T4, for:he
acquisition of certain elect"ic ac lities rom .'iietrooo.'itan
=dison Company.
~. w/J>g+Vincent 3v.tier
3 ttachment
P KH iV 5 'f L YA i'4 ( A P 0 W KR 8 t I G H 7 C Q hL P A iN Y
Two HQRTII HIH TH sTREET, ALLEHTow', 1'A. 58505 PIIoHE! 1214) 321 Jlsl
!QWARO 5!L NACElYic! h!cow,Ceno!!( Cyvaoeo ~ Ie!!e!m551~'VINCIT EUTlERCIIOI COWI%0440~~ A((augCkl SAP
LECAL 0VARTAIENT
5!v!!est CreelPAURRAY 5(UNMANIII.5l&S. JAN hUOOLEIII.II!5
J!t~QENN*KI0. CAUENOOCl~.'OHN E. EIQQARI2IWI5C, CCLUNS EROWNCB~WILLIAMC. IOECER.;R,555.~5
;Yiay 3,
197='ede
al Power Commission825 3'o .h Capitol St:eet, N, ".%'ashington, D. C. 20426
s(I= cCenneth . Plumb, Sec" etary
Gentlement
Enclosed for .'~~I g on behalf oi Pemxsylvania Power RLight Company are an origmal and five (5) copies of an Applica-t on for approval of the acquisition of certain elec'=ic faciElIt'esand appu t nant land rights by Pennsylvania Power 8c Li"ht Com-pany f om Yietropoli.an Edison Company. The s pplication isfiled pursuant to Sect on 203 oi the c'ederal Power Act and Sec»twn 33 oi the Regulations oi the r ederal Power Commissionthereunder.
An addi.'oral copy of the s ppl'cat'on .Is fu ished here-wi 52, pursuant to Sec+ on 33. 6 of the Regx at'ons, in view oi theiact that Ae approval oi the Public U:Duty Commission of theCommonweal> of Pennsylvania .'s also ." ~ed .'or the transaction.
Very ~~y you=s,
Enc'osu sVine nt Sutler
PEH H STLVA41A ROWER 4 L I GH 1 COIAPAHY
3" ZQP~ TH" =:"D:-~ PQh:"3 COi~'~f SSiON
Washington, D. C.
Zn the <wtte of "'.e Apol'cat'cn o"
P " iiNSYLVAiiZAPO/J=R & LZGFT CC~|P&lY
Appl'cat'on
Docket Nc.
."-or an O de unde Sect'on 203(a) ofthe "-ederal Pcwe" Ac" authcr'-'qthe acquisition hy Pe. zsylvaniaPowe & Light Comoany of certaine ec ic ac' si uate ' heBorouch o Stee't™n and the Town-.sh' of Swa" a, Lower Swat=a andDer~, Dauphin Coun"y, P nnsylvan a,,togethe w'th 'a"d rights a= u== nantthe eto.
TO T~~ HONGEVDLZ, ~~ ~DEBS PQN" 2 COMf SSZQNr
. Your Appl'cant, Pennsylvania Pcwe & L'ght Company(PP&L), respectfully states thatr
A. The exact name of PP&L and the address of 'tsprinc'pa'usiness off'c a e as o''ows:
Pennsylvan a Powe & L cnt CompanyTwo North Ninth StreetAllentown, Pennsylvan'a '810l
B. PP&L 's a public ut'l'ty of the C-mmonwealth ofpennsylvania, duly formed '-y consolidation and =er".er, hav='ngrece'ved Lette s Patent from "".e Governor o "'".e Commoi.wealthof Pennsylvania dated June 4, l920. Qn =ehrua~ l3, '967,pu=suant to a resolut'cn o 'ts Boa " of Dir c ors made onJanua~ 25, '967, PP&L elec d to acc pt the "rcv's'cr:s of"'"e Pemsylva 'a 3usiness Cor erat'on Law, Act o= Hay 5,1933, P.L. 364," as amended and supol en d, hy ce='='catedulv filed w''"''". the Secretaire of 're Ccmmcnwea'z pursuanto "'".e recuiremen s of said l933 Ac, as amende" hv "'". Ac-of Aug:s 27, l963/ P.L. l38'.
C. The names and add= sses o the ™ersor.s u"'".cri"edcn hehal o= PP&L to = c ive nooices and co~un c t o..s
respect o" t;".is App icaticnLeon L. 'Acr.ema.'terVic P s'dent, Div''n
Operat'nsPennsy'ania Powe" & Liqnt
Campanv
allentown, Pa.
1810'h'"Counsel«Reculatary
A="airsPennsylvan'a Powe
L qht Campany-Two ivor h 2 at'T St etAllentown, Pa. 18103.
D. The names, ti"les and addresses oz "'cearinciaal o~~icers o-„- PP&L a=e as =a'laws:
~ac% K. 3usby
3. R. 2a
Pres'cent
Zzecutive Vice P esi«de t, Ope at'cns
A3 1 +&town I P a ~
entown, Pa.
R. R. Por "ae Vice Pres'dent, ."-ina.cial Allentown, Pa.
G. P. Vande sl'c Comptral'e- A' entown, Pa.
C. R. Callver Treasu=e= A''entawn, Pa.
D. J. Trego
J T ~ Zauz ~an
Assistant Treasu" " A3.len tawn, a4
Vice P= sident, System A'lentawn, Pa.Power & m~gineer'g
Cu=txs V'e P esident,nee nq & Cons ruct cn
Allentown, Pa.
M malloy V'ce P esid at, =u~ ~~ entomb, Pa.Resou=ce and Deve'cpment
R Z. E chtenwalne V'e P esident, PublicRelat'ons
A» entawn, Pa.
F. i4. Ha@el Vice P esident, Gene al Allentown, Pa.Counsel and Secreta=g
"-a"sm'ss'on, dist="-uticn and sa' a= lec ='c ene ~~
sexes a 10 000 scuare-m'le territory .which embraces 29caunt' in c n"=al eas- —.. Per~"sylvar.'a, wnicn as a pcpu-latia.". o~ apprav'mately 2,309,000.:z add't'on ta prcv=d'".gelec ='c publ'c u-''y se„zic ta "'.e pal'c su'",'e = ta ".eju-isdiction o= "'".e P nnsylvan'a Philic Ut' 'ty Ccmmiss'an,PP& " cv.des wno3.esale ar resale se r ce ta cne el c«r cpub 1 ' u ' ty company and, «4 30 ouch s u suant to atsc.".ed'' s an 'e 'wi"'" "ae Ccmm'ssion.
2
I
0
s: C
PE ?P&~r aWrS 66 ZV, LLQ ZV, L32 KV, 230 ZV and500 ~l "ransm'ss'on '". s wh'ch cannec= g n rat'ng stationsand maja 'oad c nters, anc wh'ch int rconrect 's sys" m
ec t v w th the svs ems o f a"her eL c"r' ""' 'y sys" msLoca d ' Pennsy'an'a, Vew Jersey and Na ~Land. The Cam-panv operates 's generation a".d t w~ sm'ss'on. faciLities aspa" o" the P nnsyLvania-Vew Jersey-HaryLand :n 8 cannect'an(PJ!4) . PJA 's a u'Ly w egrated =awe "ooL and LlcLudesLL ccmpan'es serving more -:'".an 2L m'L''on eap' in a$ 0,000-scua"8-m'Le te itary.
G. PP&Z has ' r.ses fram "".e =ede"aL Powe Cam-
. miss'on cover=".g 's ~iaL'npaupack -ydraeLec"-ic Project( ' ".se Vc. 487) and cov r.ng 's .-.o'woad- .=.ydraeLec--icP OjeC (~r'enSe Na. '8L) . Qn 08C~er 6, '972, the=ede a Power Comm ss'on. Ssued a P 8L~a v ?e~t taPPU, and AetropoL'tan =d'san Ccmpanv "or t"8 St:cnv,C eekP ojec™ ard. ass'grec ta ' Project Vumher 27L9.
B. (L) (2) (3) Yh authcrized cap'at s ac!c of the. AppL'cant is divided 'zta eLeven c'asses, Common Stack o= na
~pa= vaLl 8( seven c'asses o" o=o"= d Stack( aLL o $ LQQ
pa= va'ue and cumuLatire, ard "'".ree c'asses o= 8 8 enc8. Stackl a'L of no pa= va3.ue and cumu'at've. he more com-p" he s've d.esc='pt'on af AppLicant's cap'taL s ack
~ appLication or author'"at'an to 'ssue short-t m unsecu"edp=cm'ssory notes at Docket Ho. Z-85LQ 's i.".car orated he„e'nand made a part hereof .hy re=8 ence. 'L".8 cLLaw'ag cansitutesa s atement as o 'Decerwer 3L, L973, af each cLass and ser'of capitaL stack, no sha=es of wh'ch wer heLd in "'le treas-
Preferred S(cck - $ 100 par, cutnulativc4-I/2f~, au'..".orixed 629, 936 sha" s, outstanding 530, IS9 shares
Scr.'es, authori=ed 2. 000, 000 shares3. 5~a, outstanding 41,783 sha:es4. 40~, outstanding 228, T73 shat es4. 60~~, outstanding 63,000 sharesT. 40~, outst=nding 400. 000 sharesS. 60;o. outstanding 22, 370 shares9'f~, out tand!ng TT,630 she s
P."efcrence Stock - no pa, cun:uiative, author!"ed5, 000, 000 shares
$8. 00 series, outstanding 350, 000 shares
$ 8. 40 series, outs(anding 400, 000 shares
$8. 70 series, outstand.'ng 400,000 sharesTotal?"e(orred and P".eference Stock
$53, 018, 900
4.22
a,40,22
7.
IT8, 300877, 300300, 000000, 000237, 000763, 000
35, 000, 00040, 000, 00040. 000, 000
$ 271, 374, 500
Cotntncn Stock - uo par. au!horiaed 0, 000, 000 shares,outstanding 21, 05 I, 255 shares $ 319 38~ ~36
(4) (S) (o) (7) No sha s o" cap'l s
as reac=k'ed se 'or='"'es, =ledged, owned hv affiJ.ia+ d cor-=ora"ions or he'd in any =-".d.
(')(2) (3) Appiican"'s ~L'ed dehi cons's"s of:'s" Mor"=ace Bonds and '.iotas as seL for"' here'naf"er, asof Dec mher 3', |.973. The more ccmpre.'".ensive descr'""ion o"App3.ican 's funded deht in "he Apph'ca-ion or al t'".o i=a~ionto 'sst:e sllort-"' tlnsec. ed p cm'ssory nc"' a" Qcc.'ce"Ao. =-85'0 's inco~cra-ed here'n and made a pa=~ hereo" hyWO O«O nc
LONG-TEHLL Di:ST
n cont«ol series A duc
Total . '-~ Mortgage Bonds
First Mort,ag ~onds3~o series due 19752-7/8",o series due 19762„3/4 o'„sexes due 19773-1/85 series due 19782-3/4,~ series due L9803-3/85 scr.'es due 19823-1/Z~e series ""e 14833-3/85 series due 19S54-5/S~ series" e. L9914-5/85 series duc 19945-5/3~o series due 19956-3/4'~ series due 19977~o ser es due 1990S-L/8",~ ser s duc 19999 'cr es duc 20007-L/45 se. ies due 2001'7-5/85 ser cs due 20027-1/Z~o scr.es due 20034-L/25 to 5-5/84~ poLutio
1977-2003
$ 93, 000, 0008, oao,oao
20, 000, 0003, 000, 000
3'7. 000, 000'7, 500, OGO
25, 000, 00025, 000. 00030, 000, 00030, 000, OQQ
30, 000, 00030, 000, 00040, 000, 00040, 000, 00050, 000, 00060, 000, 00075, 000, 000so, ooo, ooo
28. 000, 000$ 711, 500, 000
Notes6'-L/4~a - S-L/45 due 1974 - to be r Qnanced6-1/Z~o - 7~o We 1976 - LSSOOthe
Total Long-Te~ Debt
18, 550, 000ZZ, 800, 000
177, 025753, QZ7, 025
No amoun c "'le orego='ag was '.".e3.d ~ ='Le -east r.
(4) (5) (5) (7) Mo amer".t oz "aeas acct'r d sec -'"'es, p edged, owned=ora-'cr.s cr '.". s''c'"q o oMer "ands.
o co c "1as Lot 4cor
Z and Z. T.'lis is an p~ 'c 'on for the a=@ova'v
&e Cctma'SSion C= Le aCmiS'"'Cn hv PPS~r O= C a'
+o w7 1'c «a o o ~ xv «a asm ss on ~ e c s ~ +he «c es
8
0
a= ta he accui"ed ==am ~ieiroaolitan "-d'sor. Company (4fet =d),an e'c r'c pub 'c u=il'tv carpo at'an organized and evis-ingunce -''".e laws a= "'".e Cc.—.,onwealth o= Pennsy'vania. ~et =dis also a suhs d'ry o General P wl' Ut' ' 's Corporation,a zeg'stered holding ccmpanv under the Puhl'- Ut'''tyHolding Ccmpany Act oz l935.
The acquisition oz the a=orement'oned ac'lities's in connect an with the -- aposed tra .s=e , as an e c-r cc stamer, of the St e'"an ?l st (?'ant) oz 3ethlehem SteelCor=orat'on (3 thlehem), wh'ch 's 'ac ted in the 3orough o=St e'tan, Dauphin Cauni ~, ?ennsylvan'a, f=cm Met:-d taMet =" cm= ntly provides se sic ta Plan" hy means o-„"'".esaid 230 ZV transmission lin wh'ch " ps Net "-d's .".'dd'e-town Ju"ction-.:ummels=own 230 rÃ1 line in ?PAL's .:~elstawnSuhsta 'or. ard suppl'es a Net "-d sos at'on 'acat d onBethlehem's land ..ea- t' Plart. Met =d also employs thesaid 69 KV transm'ssian l™e aci't'es as hack-up for suchservic
Net =-d and ?PGL have ag eed ta the "=arsfe„ o=P'ant ta ?PAL service upon te~s and cond t'ons set for"'a,.several agreemen=s =etween Net "-d and PP~L, ?PAL and 3e"'".le-hem and Net "-d and Bethlehem. All ag=eements a e cand't'analu on rec 'pt o nec ssa~ approvals oz reculatary authorit'eshav'"g jur'sd'ction over va"'ous aspec"s oz the procosedt=ansac ons.
Zn summa~, ?PAL has agre d ta prcv'de serv ce toP'ant hy purchasing the existing sa'd 230 ZV ransmissionline f=om Met =-d, hv c ns~~cting a secand 230 ZV supplyline ram 'ts Wes Sha e Substation and hy canstructing a230 ZV switching stat'an wh'ch w''l he suppl'ed hy ho 5lines, adjacent ta the present i<et "-d su'astation. 3ethlehem
accuire sa'd sos a 'an f-am ~tet =-d in o der ta rece'vesupplv fram ?PAL. Pending ccnstruction o "'".e second 230 ZV
e and the 230 ZV switching stat'on hv ?PAL, ' proposesto lease the a orement'oned'9 ZV line fac'l''s =rem ><et "-d
a de ta su=alv ?'ant.Upon ccmpletian o= the new 230 ZV .line and 230 ZV
swit"hing station, rL w''l have no need =" the 69 ZV linesadvised ~t, pu=suar." ta ag eements between Aet =-d ard3e&leh~m, 3e"'Rehem was ta remeurse .'.e =d ar 'ts invest-men ' and, assume ""e expense o= disman"l'"g ~ .d "emcva'=that portion o= "'-e sa'd 69 ZV lines no longer use ul taMet "-d nar recuired '-v ?PAL for the service. PP~L has ag=eedta acceat a canveyanc o= a ce ain pa~ion o= said 69 ZVlines f=om Neo "-d a no cas at the e:c-ir t'cn a= "'".e le se.hea- the evpense o-„ their dis~".tl'".g ard rival. ?PGL
hei'v s tha~ .re >'e 4 «W
ar«o a
such p9 iV 1'nes, wh'ch a e mainly locatedservice "e r'"a» (, may very pass''"'y '"e useful'n mee 'g demancs "ar se ce in ".at cene=
he cans'cera-'on mav ..g rcm PP&L ta ."et =-d fothe said 230 ~4 line facili"i s 's based upon or'g''ast'ss depr c at. on a" "".e " -e o" the transf =. PP&L under-stands that Met "-d. will he reiz'"ursed hv 3ezhlehem for 'ts'aves"-. ent in the sa'd 69 KV fac'''t'es pu=suant taac cement '"et..ve n "'".ase pa='i s.
=w~('t K to this App'cat'on 's a capy a anAppl'cat'on of Net "-d and PP&L to "'".e Pe. asylvzx'a Puhli"
~ 4 k T+ J '«JUt'' 'tv Ccmm ss= .". 'n c™nnec='cn w "". "'"ese mat" rs;. =:c.'-hit A "a sa'd Apa 'ca"'on 's a capy of "ae Agroeme..t '"etween
~PP&Z and Net =d, da™ d Aarch 11, 1974, he Acre ment con-tains a d.escr''pt'on a= the sa'd. 230 CI 'ine fac'' '"'es andsets out the o='ginal cas- and applicable dep eciation"'".ereon at Dece.-."er 31( 1973, a" Schedule A -".er of. TheAgr e ent a'so c scr""es "".e sa'd 69 Z'1 =ac'''"' ard setsou at Sched"le 3 ='".ereof the rental ccaput "'or. app'cicledu=ing the " ~ of "':e lease of such fac ''es ry -~(e~ =dta PP &L
The "-arsact'on involves the 230 ZV and 69 KV ac'-1'ties as set out m "™e ahove»ment'oned Agreement and doesnot '"elude all "e opera ing fac'lities o= either ?P&L orHei =-d.
L. 'The orig'aal cast and deprec'at'on applicableta the said 230 KV 1'"e rc''''es a=e shown as of January 1,1974( an Schedule A o" Zxhihit A, wh'ch 's "'".e Agree. en=between PP&L and >fe= =d contained in "-zhihi" K hereof. h'sin=armation has '=een proviced to PP&L hy Net "-d. The 59 KVline facilities as to wh'ch PP&L u'~( tely proposes toac"ept hy way of conveyance fram Met Zd a"e re"er»ed ta atpa-ag aph 3(f) of the said. Agreement. Net =-d has advised
&L that the a- g'.a'ost o such ac'' ''s at Janua1974, 's $ 140,SS3.47, ard o 'ginal cast Less deprec'at'or. 's$ 07,029.74. I 's passel that zo e or 1 ss of the 69 xvline facilities than spec' ed ' said Agreement may u'i«PP&L expec s that at tha= ~(ae i~tet "-d w ll =~. -sh an . ~ven-tary and. u-dated cas data and PP&L w l'ard any suchac~(sition in 'ts '"coRs o" accou.". in accar"ance with ='".eCawssian's Un'=orm Sys" m o Accaunts ard app''cal ""'
eca ds w. es ec ta . e -o eco'-g facil- ies a 2 se lve cusrcdy of Ne do
A. he ar'aa r ef ect ofp'ac PP&L in a "as'='an ta '"e
p
the "- csacticnwil'o«go»«a ' ' e~~~~ ~oU oxide «» «se r
I I ~
~ ~ I
«4 lPl ant o . Bet tlehem 1 ccatod ~ 3 teel t n,'4fet d wi 1 lthereupcn cease ta provide serv c to Pl ".t..".e transferof a reta'' pa"ran under "".e circums-anc s o= "'".e proposedtransac 'an 's spec'='c lly su'"-.'ec to a praval byPennsylva ' P" ' U ' y Ca Liss ' urde Sec an 202 (e)of the Pennsylvania Publ'c Ut' '"y ~ aw. Z is expected "'".atthe "-ansaction will also rosult in a new ' erccnnect'anpoint between PP&L and Aet "-d.
Chief Counsel-jaculatory A== '"sPennsylvania Pawe" G Liuent CompanyTwo No a Ninth StreetAllentown, Pennsy van'
l8l0'.
An appl'cat'on wite res=ec ta the "-ansfer o"acil't'es, as ~ the proposed tra"sac=ion and involv'ac the
Commission and i=s approval 's " '"ed. A ioint A=p 'cat'on
+ub ' Ut l tv Comm's a'1 A catv o f ~ Kaa ««t'.i '
d he ewiM as "=wsibit Z. A c"py o "ae Cert===cat of
Per".sylvania Pub'c Ut'l'y Cc~ssian will be fi'ed w'hthe Com'ssion a=ter the same 's received by PPRL.
P. Bethlehem pr sently rece'ves servic at ts
serve the Plant, upon c = ain conditions. P.'rst, thatBethlehem would cove the cast o= add't'anal l~e and appur-tenant ac'l't'es rec"ired by PPGL ta bee'a such se zice,either bv contribution o othe a anqement accepta'"le taPPRL. Second, "".at PPGL wou'd negotiate ac cisitian andlease of ce t~' fac' it'es fram Met =d in order ta providethe service. h'rd, that rem'd " cu'atory approvals fo" ansfer of fac''''es and for "=ansfor o- patran be ac=u'red.
The ar=angement as worked out 's ~ t"e publ'cinte est because 3ethlehem w~' rece've se z ce ram "'".e
~e '" ccn emplates w'll resul" in a more ecaramical ope„a-
inveswent in facilities c = nt'y devoted ta the Plan 'sse~ c , e'"'"e by pu-chase by PPSL or by paymen fram3e" alehem. P~QL submits that he arrm~.gement w' 'e~tta serve lant w''"".au any un easanab'e cas" b"-den heineimposed on ' aDe cus "mers.
Q. Appl'an, PPSL, has all nec ssa»y ranchisesta ca=~ ou ' pub'c util'ty func"'ons and bvsizess uponac~si 'on of the proposed fac'''"'es. The C "='='cate cf
Publ'c Conven'erce, ' 'ssued bv the Perasylvania P~)''cUt'L' Commission in consider iion o= "'ae Appl'cat'anfound at '-x.'".ibi" K he eto, w l a'sa p ovide specific c =-" 'ation =o e serv co bv ao5~ - .
e slant o
R. Appl'an , PPG , su'"mits that the ol'ow'ngform o notice 's su'tabl =or publ't'n "a the = deralReg'te
?ennsylvan'a ?owe a Light CompanyDocket No.May 3, L974
Not' o P apased Ac=u'''no =Lee=-ic Transmiss'an =ac'L'"'
a'ce Notice that Pennsylvania Power & ~ cntCompanv (PP5 ) on <ay 3, L974, " nder d =or ='''ng anAppl'cat'an far ~a Qrde under Sect'on 203(a) a= "'".e = ederal?ower Act, author z~".g ".e accu'''on o certain e'c r'c
ansm'ss'an fac'L''s fram Metropolitan =d'son Ca~any(Met BX) . The acn'isition 's in c nnect'on w'"c the ""ansferof retail electr'c supplv to t™e Steeltcn P'ant a= Be"'".3. hemSteel Corpora"'on " om quiet =d to PPG~)'. The fac ' t'es whicha"e proposed to be trans erred a"e Located in the Boraugh o=Stee'"an, and the Townshi-s of Swatara, Lower Swata a andDe~, Dauphin Coun y, ?e. "sylvania.
Any person des'ring ta be heard or to ma!ce anyprotes with re erence to said appl'cat'on should, on orbe or'i~e widow the "-ederal Pawer Cam-m'ss'an, 829 Norm Capi ol Street, H.-., Washing n, D. C.20426 I
pet�'icns
ar protes s in accordance w='th the recuire-menv o= the Ccmm'ssian's Rules of Prac 'ce and P ocedure(L8 C=R L.8 or L.LQ) . All pratests fi'ed with the Co@mis-s'on w' be consider d by it in d " rmin~g "'".e appropriateac 'on to be " men bu will not sewe to w~e ""e o-ates ~tsparies to "'".e proceeding. Persons w'sh "g ta "ecam pa"='esta a proceeding. a ™a pa 'c'pa e as a pa v ~ anv hea='".cwere'a must ''e pe 't'ons to 'enne in accarda ce wthe Ca~ssicn's Rules. The appl'ca 'an 's cr. ''e wi" '.eCession and ava'Lable or pu'"Lic 'nspec 'or..
NE"RZ:QR=-, Appl'cant, ?Pate, "espec fu'Ly „" n esthe "=ederal Power Calm'-s'on "a enter i"s Order au-''"aris'ng
"~a p„o-ose6 ac"uisit'ca oZ e'"='cout ha a .".a'"ove.
""ac ' "'as as sat
P MSY VAiM:4 PQb:"R Z GH CQi4L~AiHY
3'
ATT ST:
, rr'ic.<CC3. R.
mac tive - V' P" siceatOpera ons
lgl »~ A,o 8 i,i%is t&1t a e c» o t~~~p
9
l
0
t
COP~~'QNil:"ALT~ Q~ ~-~iifS ~" VZi:A
CQEPITY 0" L-':ZGH
)~ SS)
3, R. ~~~KM, he'ng du'y swo"n cco"d'ng to
law, de™oses ard says "'".at he 's "-x c ™'v V'ce P= s'dent,
Qoe~at4 ons o c oartwsv I van 0 a Dowe~ 5, T i c~ 0 Cwvggar v ~ + ~ 5 lhcl
is auto-"'wed to a".d does maRe "a's a"='v~ t fo~ 't; and
that the fac"s se fo=m above a" "-ae a".d co -ec to "'".e
hest o= h's .'c.".ow'edge, 'afomat'on and '"el'ef.
Swo~ to and suhsc=''"ed- hefo"e me "c's 3~d day
of Hay, '74..n'Y7i. i'~c.'c
~ os Bxy uDJ.~cA13.er.tosa, Lehigh County, Pa
Hy Ccaun'ss'on =zp'" s: Ma=eh 1S, '976
1 0
The a a-a fil d wi-a "'.'s Appl'cat'or., and *s apa he o=, the =xhi'"its 1's=ad '"e'ow. Refer nces 'n thei'hand cole.z ind'c t =xhizits previous y -'lad with
the:ede al Pave Commission wh'ch are incor=orat d hereinoy raferanc
>a m o+ 2~ 1 i~c44K
A~3
Copy of Restated A~'clas ofLacorpo at'on of A"pl'antAmendmen s to A 'c'es ofissua".ca o" Pz fa ence Stock,$ 8.40 Se ''es and P aferar.cStock, $ 8. 70 Sez es
issuanc of P aferanc Stock,$ 8.00 Series
Amendments to Ar 'cles ofLscorpora ion a 3.ecting aninc ease of av. ".oz'zed CommonStock of Applic at to 30 mill'onsha"es; an wcrease o author-ized P efe ance Stock, to5 million sha" s; t:.e ssvancaof 7.40% Sez'es Prafa radStock; and a ciaxge of A"pl'-cant ' regis tered o f 'aAmendmant to A~icl s ofZnco—orat'.. a "1 c '.g anincrease of anthoziz d Se 'Preferred Stock of Applicantto 5 m'2.lion sha as
Copv o 3v-laws of App''ca"t,as arne ded. to data
Docket Ao.--7581
Docket 8o.=-7581
Dock t No.m~7Q 8 1
Docket Ho.» -8510
Docket 3o.=-7581
Copv of 'Resol " cns o" ae3oa=d o f D'ac=ors o f A"=~ 'n"adopted Ma ch 22, 1967, a thc
Appl'cant to exec'ny a"d allnec ssary or a"p opriataconnec='on with "'".e basin ss o"
vbi'~i <Zh«« I «tern t)«w ew «4 1 4 qe«««W««
D-2
Capv of !oz-=ace anc Oe c ofTrust of A"p:'c nt, dated asof Octaoer 1, 1945, taGuaranty Tzus Camaany of NewYork (now. Ao can GuarantyTrus Companv of New Yore),as Tzus- e, and cop'es of"-'zst, Secanc arc Th'rd
upplemenQ 1 -.nden .. sthez "c, dated as o" Ju'v 1,1947, Decemaer L, '948 arc2'ehzua~ ', 1950, respect've'yCap' o» =ou"='5 Supplementalident -, da"ed as of March 1,1953, and Supplement~~ Zrden-tuze, da" d.as of Ju'y 1, '954,to App'ca.".t's Nar =.age a".dDeed of Tzus"-
Docke" Na.Na. 6483
Docket No.=-6594
'D-3Seventh Supp me..ta '.den-tures ta App' cant's Na qaqeanc Deed of Trust, dated as ofAugust 1, 1955, Decemhe 1,1961 and Ha=eh 1, L964, es ec-tivelyCop'es of ='q.". h, N'a"a andTenth Suaal~me-ias ~-.denturesto Appl cant' Nazi>age andDeed o Trust, da ed as afJune 1, 1966, November L,1967 anted Dece '"er 1, 1967,res=ec 'elv
Docket No.No. 7214
Docket No.No. 7411
D«7
Copies of =Leven 'z and Twelveand Th'zteer."5 SupplementalQxdenim™ls ta Appl'ant'Naz >age and Deed af T= st,dated as o" Janua .~ 1, 1968,and June L, L969 ard March ',1970, respect'velyCopv o» .=au~ n-'a Supple. ental
gage and Deed a f rust, dateas af =eaz azy ', '971
Copv of ='=teenth Supplemental~ «~ g ~ ~) 4 ~«« I'.den «'« — ~Q r- c~i «s ..a
qaqe a.".d Deed o" z"s", datedas o= =ex ua" ~ ', 1972
~ acket Vo.=-75 81
wacke No .Z« I 38
ocket No.758 '
Ig
=-vhiait . >a~m D»4w» «i 0 4 « c
D-8 Copv o" S't enth and Seven-te nth Supp:emen"a'dentur sta Appl'cant's Hart=ac andDeed, of Trust, dated as cfJanua"y ', 1973 and Hay ', 1973,respect'vely
Deck t No."=«aslo
D-9
D-10
D-12
Capv of Mort"age and De d ofTruest o" Tne Sc= stan "-'tr "Company (to wh ch A"pl'cant 'ssuc essar ay merge ), dat, d asof "=e'-rua=J 5, 1937, toCher" ca'ar.k S T=ust Corn=any(Now Chen'cal Corn "-zcha.qe3ank) and Howa-d 3.
Sm'Russel3.H. Sherman, succ sscT- s ee), as Triste s, andcap'es of "='rs" and Secand
da" d as o= Ncvemhe 1, '946and Apr'' ', 948, respective'>Copies of Th'd and. =ou»thSupplemental L".dent@ es taScranton's Ha tcace and Deedof rust, dat c as af Nay 1,1952 I and Se temhe" ', 195 2 grespect'velyCopies of = if"s SupplementalZndent -e, dat d as ofJanua»y 31, 1956, and Supple-mental Xndenture, datedJanua»y 31, 1956, to Scrantan'sMortgage and Deed of Trustpurchase and Loan Ag eemen ofAppl'cant dated Decemher 27,1966
Docket No.=-6 326
Docket No.Z-6483
Docket No.- -74'1
Docke No.- -74'1
Op~lLon c V~cen» 3u le ~ s~i 8 IC'me f Counsel-Regulator J A"=a'sSta ment o ~casu= of Can"-"'r
Owre ship ~e cised 3y crOve Appl'c at3alanc Shee o„ Applicant as of
Schedu e A - C'ss. ='cat'-nUs '14'«J «Bee«
3
C
h ~
A~ ~
Ql<o
Cor."'.ueP ==om pace 3
Scaecu'e 3 - P=o-osevc"-na'n
~ mesSc1edu'e C - .'lot s ™o ."-''".anc'a1
Sta"caen-s
PP sL - S tater;.ent o Con" '.".cents
PP&i - Zncone S" "'e™ex~ ""= "".eyear ence'. Dec ™~e 3~, '973
PP~ - Sta" r;.en" c" "-a=n'".csRe'aves" c =o- ".e yea eacH"ec .me 3', s 973
-PLson Coz an< ~ ic Pe sy '~~ a
m ss'on a" A--' "'cn "cc.'~eNo.
Ag ement '"e" seen:
1. PP &L
aced
Be "~ 'h~~ S teeCc ora™ on "a" 6 ."~ch»,1974.
2. Acr=event '"e-„~een PP<
-"at~ Ha=eh L3., '74; see-xh h~t Z "e= o".
4~1
