[Federal Register Volume 64, Number 94 (Monday, May 17, 1999)]
[Notices]
[Pages 26794-26795]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 99-12354]
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SECURITIES AND EXCHANGE COMMISSION
[Release No. 35-27018]
Filings Under the Public Utility Holding company Act of 1935, as
amended (``Act'')
May 10, 1999.
Notice is hereby given that the following filing(s) has/have been
made with the Commission pursuant to provisions of the Act and rules
promulgated under the Act. All interested persons are referred to the
application(s) and/or declaration(s) for complete statements of the
proposed transaction(s) summarized below. The application(s) and/or
declaration(s) and any amendments is/are available for public
inspection through the Commission's Branch of public Reference.
Interested persons wishing to comment or request a hearing on the
application(s) and/or declaration(s) should submit their views in
writing by June 2, 1999, to the Secretary, Securities and Exchange
Commission, Washington, D.C. 20549-0609, and serve a copy on the
relevant applicant(s) and/or declarant(s) at the address(es) specified
below. Proof of service (by affidavit or, in case of an attorney at
law, by certificate) should be filed with the request. Any request for
hearing should identify specifically the issues of facts or law that
are disputed. A person who so requests will be notified of any hearing,
if offered, and will receive a copy of any notice or order issued in
the matter. After June 2, 1999, the application(s) and/or
declaration(s), as filed or as amended, may be granted and/or permitted
to become effective.
New Century Energies, Inc. (70-9493)
New Century Energies, Inc. (``NCE''), a registered holding company,
and its wholly owned nonutility subsidiary, NC Enterprises, Inc.
(``Enterprises''), 1225 17th Street, Denver, Colorado 80202-5533, have
filed an application under sections 9(a)(1) and 10 of the Act and rule
54 under the Act.
New Century Energies has three public-utility subsidiaries, Public
Service Company of Colorado (``PSC''), Southwestern Public Service
Company and Cheyenne Light, Fuel and Power Company. Together, these
subsidiaries serve approximately 1.6 million electric customers in
parts of Colorado, Texas, New Mexico, Wyoming, Oklahoma and Kansas and
approximately one million gas customers in parts of Colorado and
Wyoming.
NCE also engages through subsidiaries in various nonutility
businesses. Enterprises serves as the intermediate holding company for
most of NCE's nonutility interests.
Enterprises, through a new wholly owned subsidiary to be named New
Century O&M Services, Inc. (``NCO&M''), or one or more additional
subsidiaries of either Enterprises or NCO&M, requests authorization to
bid on and acquire facilities, systems and related equipment, tools and
inventories owned by the Federal government on military enclaves which
are used exclusively in connection with the delivery and distribution
of electricity, natural gas, water (including potable water and hot and
chilled water), steam and other energy products; and to collect, treat,
process and dispose of solid and liquid wastes (collectively,
``Military Base Assets''). NCO&M proposes to bid on assets when offered
for sale by the federal government in accordance with military base
privatization efforts of the Department of Defense ``(DOD'').\1\
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\1\ DOD has undertaken its current efforts in response to
legislation, 10 U.S.C.A. Sec. 2688 (1998), granting the Secretary of
a military department authority to sell electric, gas, water and
other military base distribution systems to private parties, with a
view to achieving cost reductions in essential services on military
bases and a significant improvement and upgrading of the systems by
qualified parties.
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NCO&M requests authorization to invest up to $150 million in
Military Base Assets in one or more transactions from time to time
through December 31, 2003. NCE and, to the extent not exempt by rules
52 and/or 45(b), as applicable, Enterprises and NCO&M, will issue debt
and equity securities and guarantees for the purpose of financing the
acquisition and operation of any Military Base Assets in accordance
with the order of the Commission dated April 7, 1999.\2\
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\2\ New Century Energies, Inc., Holding Co. Act Release No.
27000. The order authorizes NCE to issue common stock, short-term
and long-term debt and guarantees in specified amounts and, to the
extent not exempt, to engage in intra-system financing, from time to
time through December 31, 2001.
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Generally, NCO&M would acquire Military Base Assets for cash or
under the terms of a long-term services agreement with DOD (or a
military department of DOD). Under the services agreements, NCO&M may
agree to credit some or all of the stated purchase price for any
Military Base Assets against future payments for essential services
provided by NCO&M.
Initially, NCO&M proposes to bid on and, if successful, acquire the
particular Military Base Assets described below. The applicants request
the Commission to reserve jurisdiction over the acquisition of any
additional Military Base Assets by NCO&M pending completion of the
record in this proceeding.\3\
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\3\ The applicants undertake to file a post-effective amendment
in this proceeding describing other Military Base Assets that NCO&M
may seek to acquire in the future.
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Specifically, NCO&M proposes to submit a bid in response to a
request for proposals by the U.s. department of the Army to acquire the
elctrical and natural gas distribution facilities that are located at
Fort Carson Post (``Fort Carson''), near Colorado Springs, Colorado
(Fort Carson Military Base Assets). \4\ Fort Carson covers an area of
more than 137,000 acres and includes approximately 1,860 buildings. The
total daytime population of the base (active military personnel, their
dependents and civilian workers) is estimated at 25,000. The electrical
[[Page 26795]]
distribution system of Fort Carson is served through two substations
with roughly 129 circuit miles of overhead primary distribution,
approximately 18 circuit miles of underground primary distribution, and
approximately 2,300 street lights. The natural gas distribution system
serves aprpoximately 1,300 buildings throughout the base and consists
of approximately 306,214 feet of pipe ranging from \3/4\'' to 10''
diameter, and includes associated metering and pressure reduction
facilities.
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\4\ The Department of the Army also invited proposals or the
purchase of the water system at Fort Carson. NCO&M's bid does not
cover the water system.
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If its bid is successful, NCO&M will enter into a services
agreement with the federal government having a minimum term of ten
years, under which NCO&M would provide natural gas and electric
distribution services at Fort Carson. A part of the agreement, NCO&M
would agree to provide all necessary labor, materials, tools and
equipment necessary to operate, maintain, repair, upgrade and improve
the distribution systems. The agreement contemplates that NCO&M would
be obligated to conduct a complete physical inspection and survey of
the systems within the first six months of the term of the contract,
with a view to identifying those components that require repair,
replacement or upgrade in order to ensure safety and quality service.
Subsequently, inspections and surveys would be conducted annually
during the term of the agreement.
NCO&M would not be able to sell the distribution systems without
first offering the federal government the option to repurchase them.
NCO&M may not use the Fort Carson Military Base Assets to serve
customers outside Fort Carson without the permission of the federal
government. NCO&M represents that it will not offer electric or gas
service to customers outside Fort Carson without first obtaining a
further order of the Commission in this proceeding.
NCO&M will hire and maintain a permanent on-site staff at Fort
Carson of approximately nine individuals and will utilize
subcontractors as needed, including PSC. NCO&M will also purchase
administrative and management services from New Century Services, Inc.,
the service company subsidary of NCE, under the system Services
Agreement.
NCO&M intends to enter into a support services agreement with PSC,
under which the utility may provide personnel and other resources, from
time to time, to assist in such activities as the physical inspections
and surveys of the Fort Carson distribution systems and maintenance,
repair and improvement. NCO&M will utilize a standard work order
procedure to request support services from PSC. PSC will be reimbursed
promptly for its costs incurred in connection with rendering any
services to NCO&M or its subsidiaries. PSC will utilize cost accounting
procedures designed to identify promptly all direct and indirect costs,
including overheads, which are applicable to the work being performed
by or with PSC personnel, material or other assets. The application
states that all transactions between NCO&M and PSC will be performed at
cost in compliance with section 13 of the Act and rules 90 and 91.
Finally, NCO&M will indemnify and hold PSC harmless against all claims
or liabilities that may be incurred in connection with providing any
services to NCO&M.
For the Commission by the Division of Investment Management,
under delegated authority.
Margaret H. McFarland,
Deputy Secretary.
[FR Doc. 99-12354 Filed 5-14-99; 8:45 am]
BILLING CODE 8010-01-M