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November 7, 1978

Mr. Olan D. Parr, ChiefLight Water Reactors Branch #3Division of Project Management -Office of Nuclear Reactor RegulationU.S. Nuclear Regulatory CommissionWashington, D.C. 20555 .

' NRC Review of Financial Qualifications:Further Submission ofInfomation Reauested

Dear Sir:.

On October 25, 1978, NRC telecopied to BECo a list entitled " AdditionalInformation Requested to Proceed with Financial Qualifications Review ofBoston Edison Company's Application for Permit to Design and ConstructPilgrim Unit 2." This list, which included eleven items, was describedby Mr. Licitra as the final request for information in your financialqualifications review. At this time we are supplying three more of theeleven items requested. We will provide the remaining four items whenavailabl e.

'he three responses, which are attached, are as follows:

Response #9. " Boston Edison Company, Short Term Borrowings,September, 1978", dated 10/5/78. (This is sub-mitted in response to NRC request #9 for astatement of short-term credit arrangements,indicating present limitations, use and avail-ability of funds, terms of repayments, compen-sating balance requirements and other pertinent

- information. )

Response #10. " Boston Edison Company, Financial Statistics"(This is submitted in response to NRC request#10 for a revised statement of financial statis-tics incorporatin9 results of operations foryear ended September 30, 1978, ref. Table VI-a-3of Amendment #8.) [

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. BOSTON EQlSON CCMPANY

Olan D. Parr 2. November 7, 1978

iResponse #11. ." Boston Edison Company, Re: Debt Interest Coverage --- - -.__

Indenture f*ethod, 12 months ended September 30, 1972."(This is submitted in response to NRC request. #11 fora revised statement of debt interest coverage utilizing

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indenture methodology for 12 months ending September 30.1978, ref. Table VI-a-5 of Amendment #8. ) ,

Very truly yours, ,

/ ..F )Y, D .<Y.

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RESPONSE #9

BOSTON EDISON COMPANY

SHORT TERM BORROWINGS, SEPTEMBER, 1978

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RESPONSE #10

BOSTON EDIS0N COMPANY

FINANCIAL STATISTICS

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BOSTON EDISON COMPANY

Financial Statistics

(Millions)

12 Months EndedSeptember 30, 1978

Earniugs available to common equity 32.9Average Common Equity 353.2

Rate of return on average common equity 9.3

Times total interest earned before FIT:Gross income (incl. AFDC) & current anddeferred FIT -F total interest charges & __

am;rtization of debt discount & expense 2.57

Tipes long-term interest earned before FIT:

Gross income (incl. AFDC) + current and.

I deferred FIT -:- long-term interest chargesand amortization of debt discount and expense 3.08

Bond ratingsStandard and Poor's BBBMoody's Baa

Times interest and preferred dividends earned .

af ter III:

Gross income (incl. AFDC) *- total interestcharges + amortization of debt discountand expense + preferred dividends 1.45

AFUDC 14.8Net income after preferred dividends ,32.9

Percent 45.0%('

Market price of common per share 25.5Book value of common per share 30.83FMrket-book ratio (end of period) .83

Earnings available for common less AIDC +depreciation and amortization, deferred taxes,and investments, tax credit adjustments deferred 108.5

Common dividends 28.1Ratio 3.86

Short-term debt 79.2- Bank loans -

Commercial Paper -

Capitalization (amount and percent)

Long-term debt (1) $604.7 53.6%Preferred Stock $167.6 14.9%Cocmon Equity $355.6 31.5%

(1) , Includes current portion of long term debt ($61.6) and excludesthe nuclear fuel Icase obligation ($39.1).

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RESPONSE 811

BOSTON EDISON COMPANY

RE: DEBT INTEREST COVERAGE -

INDENTURE METHOD, 12 MONTHS ENDED

SEPTEMBER 30, 1978

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BOSTON EDISON COMPANY'

RE: Debt Interest Coverage - Indenture Method12 Months ended September 30, 1978

(000's)

Gross Operating Revenues $617,877 '

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Total Operating Expenses 525,56292 315

Add: Depreciation 45,'673137,988

Add: Other Income - Net _ (1,507)

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" Net Earnines" - (Amount available for DebtInterest Coverage) $136,481

First Mortgage BondsOutstanding ~9/30/78 - - - - - $506,688

$ 39,523Annual interest thereon -

,- Secured NotesOutstanding 9/30/78 $ 23,000

2,588Annual interest thereon -

S 42,111Total,

Times Interest Earned $136,481 3.241=

42,111

Indenture Fequirement 2.000********

Net Earnings Available for issuance of additional Bonds

Net Earnings $136,481 i

Amount needed 9/30/78 ($42,111) x 2) 84,222 -

-52,259(Net Earnings available ($52,259 x .50) $ 26,130

Bonds issuible @ 10 1/2 $248,857

@ 10 1/4 254,926

@ 10 261,300

@ 9 3/4 268,000

@ 9 1/2 275,052

@ 9 1/4 282,486

@ 9 290,333

@ 8 3/4 298,628|

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