[Federal Register Volume 61, Number 35 (Wednesday, February 21, 1996)]
[Notices]
[Pages 6638-6639]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 96-3778]
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DEPARTMENT OF ENERGY
[Docket No. ES96-1-001]
Old Dominion Electric Cooperative Notice of Amended Application
February 14, 1996.
Take notice that on February 8, 1996, Old Dominion Electric
Cooperative (ODEC) made a filing requesting that the Commission amend
the authorization granted in Docket No. ES96-1-000.
By letter order dated November 20, 1995 (73 FERC para. 62,120),
ODEC was authorized, under Sec. 204 of the FPA, to enter into a tax
advantaged lease and leaseback of its 50 percent undivided ownership
interest (Undivided Interest) in the Clover Power Station Unit 1 and
certain common facilities.
As described in the application, the transaction would involve a
lease and leaseback under which a tax-sensitive investor (Equity
Investor) will obtain ``ownership'' of the Undivided Interest for
income tax purposes.
There are three modifications to the original application indicated
in ODEC's February 8, 1996 amendment. They are:
A. Changes to Debt Structure
Under the initial application, ODEC would have used part of the
prepared rent under the Head Lease to fund a loan characterized as the
Series A Loan. Under the proposed structure, the Series A Loan will be
made by an independent lender; and, ODEC, would enter into an agreement
with an affiliate of the Series A Lender, whereunder the affiliate will
undertake to pay that portion of each installment of rent which equals
then due principal and interest payments on the Series A Loan in
exchange for an up-front payment made by ODEC from the pre-paid Head
Lease rent.
B. Change to Equity Security Deposit
According to the original application, ODEC was to set aside the
Equity Security Deposit to be invested in certificates of deposit. ODEC
is now preparing to use the Equity Security Deposit funds to purchase,
on the market, ODEC Bonds rather than investing in lower yielding
certificates of deposit.
ODEC proposes to replace the repurchased Bonds with new 1996 Series
A Bonds which would have a maturity of less than one year. ODEC
indicates that the new Bonds would be issued under the authority
granted by the Commission in Docket No. ES94-40-000 (69 FERC para.
62,054).
[[Page 6639]]
C. Release of Lien of ODEC's Indenture
As indicated in the initial application, the Undivided Interest
would be leased to the Equity Investor subject to the lien of ODEC's
Indenture. As originally proposed, this lien was to survive even if
ODEC elected to not exercise its Purchase Option under the Operating
Lease. Now, however, ODEC is now proposing that at the end of the
Operating Lease, if it chooses not to exercise its Purchase Option, it
would obtain the release of the Undivided Interest from the lien of its
Indenture.
Any person desiring to be heard or to protest said filing should
file a motion to intervene or protest with the Federal Energy
Regulatory Commission, 825 North Capitol Street, NE., Washington, DC
20426 in accordance with Rules 211 and 214 of the Commission's Rules of
Practice and Procedures (18 385.211 and 385.214). All such motions or
protests should be filed on or before February 22, 1996. Protests will
be considered by the Commission in determining the appropriate action
to be taken, but will not serve to make the protestants parties to the
proceedings. Any person wishing to become a party must file a motion to
intervene. Copies of this filing are on file with the Commission and
are available for public inspection.
Lois D. Cashell,
Secretary.
[FR Doc. 96-3778 Filed 2-20-96; 8:45 am]
BILLING CODE 6717-01-M
