48122 Federal Register / Vol. 62, No. 177 / Friday, September 12, 1997 / Notices

1 Granite, NEET, and NH Hydro have received

express authorization for these borrowings from the

New Hampshire Public Utilities Commission, the

state in which these utility companies are organized

and doing business. These borrowings are exempt

under rule 52 because of the state authorization.

Randall, External Affairs, 2300

Clarendon Boulevard, Suite 1300,

Arlington, Virginia 22201–3367; (Tel)

703–235–4473; (Fax) 703–235–4495; (Email) info@nwtrb.gov.

The Nuclear Waste Technical Review

Board was created by Congress in the

Nuclear Waste Policy Amendments Act

of 1987 to evaluate the technical and

scientific validity of activities

undertaken by the DOE in its program

to manage the disposal of the nation’s

high-level radioactive waste and

commercial spent nuclear fuel. In that

same legislation, Congress directed the

DOE to characterize a site at Yucca

Mountain, Nevada, for its suitability as

a potential location for a permanent

repository for the disposal of that waste.

Dated: September 9, 1997.

William Barnard,

Executive Director, Nuclear Waste Technical

Review Board.

[FR Doc. 97–24201 Filed 9–11–97; 8:45 am]

BILLING CODE 6820–AM–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 35–26758]

Filings Under the Public Utility Holding

Company Act of 1935, as Amended

(‘‘Act’’)

September 5, 1997.

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 thereunder. All interested

persons are referred to the application(s)

and/or declaration(s) for complete

statements of the proposed

transaction(s) summarized below. The

applicant(s) and/or declaration(s) and

any amendments thereto is/are available

for public inspection through the

Commission’s Office 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

September 29, 1997, the Secretary,

Securities and Exchange Commission,

Washington, D.C. 20549, 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 shall

identify specifically the issues of fact or

law that are disputed. A person who so

requests will be notified of any hearing,

if ordered, and will receive a copy of

any notice or order issued in the matter.

After said date, the application(s) and/

or declaration(s), as filed or as amended,

may be granted and/or permitted to

become effective.

New England Electric System, et al.

(70–9089)

New England Electric System

(‘‘NEES’’), a registered holding

company, and its subsidiary companies,

Massachusetts Electric Company

(‘‘Mass. Electric’’), Narragansett Energy

Resources Company (‘‘NERC’’), New

England Electric Transmission

Corporation (‘‘NEET’’), New England

Energy Incorporated (‘‘NEEI’’), New

England Hydro-Transmission Electric

Company, Inc. (‘‘Mass. Hydro’’), New

England Hydro-Transmission

Corporation (‘‘NH Hydro’’), New

England Power Company (‘‘NEP’’), and

New England Power Service Company

(‘‘NEPSCO’’), all of 25 Research Drive,

Westborough, Massachusetts 01582, and

Granite State Electric Company

(‘‘Granite’’), 407 Miracle Mile, Suite 1,

Lebanon, New Hampshire 03766,

Nantucket Electric Company

(‘‘Nantucket’’), 25 Fairgrounds Road,

Nantucket, Massachusetts 02554, and

the Narragansett Electric Company

(‘‘Narragansett’’), 280 Melrose Street,

Providence, Rhode Island 02901

(collectively, ‘‘Applicants’’), have filed

an application-declaration under

sections 6(a), 7, 9,(a), 10, and 12(b) of

the Act and rules 43 and 45 under the

Act.

Applicants propose, for the period

from November 1, 1997 through October

31, 2001, that: (i) Mass. Electric,

Nantucket, Narragansett, Mass. Hydro,

NEP, and NEPSCO (‘‘Borrowing

Companies’’) borrow from the NEES

intrasystem money pool (‘‘Money

Pool’’); (ii) any one Applicant, or a

combination of several Applicants, loan

money to one or more of the Borrowing

Companies through the Money Pool

under the current terms of the Money

Pool; (iii) the Borrowing Companies

borrow from banks; and/or (iv) Mass.

Electric, Narragansett, and NEP issue

commercial paper. The Borrowing

Companies propose to borrow money

and/or issue commercial paper up to the

following amounts: Mass. Electric—

$150 million; Nantucket—$5 million;

Narragansett—$100 million; Mass.

Hydro—$25 million; NEP—$375

million; and NEPSCO—$12 million. In

addition, Applicants state that the

following subsidiary companies plan to

incur, through exempt transactions,

short-term debt in amounts that will not

exceed: for Granite, $10 million; for

NEET, $10 million; and, for NH Hydro,

$25 million.1

The proceeds from the borrowings

will be used: (i) To pay outstanding

bank notes, dealers in commercial

paper, and/or borrowings from the

Money Pool, (ii) to provide new money

and/or reimburse the treasury for capital

expenditures, and (iii) for other

corporate purposes, including working

capital and the financing of construction

and property acquisitions.

Applicants propose to lend surplus

funds to the Money Pool. The interest

rate will be 108% of the monthly

average of the rate, as published in the

Wall Street Journal, for high grand 30-

day commercial paper issued by major

corporations and sold through dealers.

Although there are no stated maturities,

the loans made by the Money Pool are

payable on demand, and may be prepaid

by the borrower without penalty.

Borrowings may, but do not need to be

evidenced by notes.

The Borrowing Companies will issue

notes for the bank loans that mature in

less than one year, and the notes will

have a negotiated interest rate. The

Borrowing Companies will pay fees to

the banks instead of making

compensating balance arrangements.

The effective interest cost of bank loans

will not exceed the greater of the bank’s

base or prime lending rate, or the rate

published in the Wall Street Journal as

the high federal funds rate, plus, in

either case, one percent. Some

borrowings may be without prepayment

privileges. Payment of any short-term

promissory note before maturity will be

made on the basis most favorable to the

Borrowing Company, taking into

account fixed maturities, interest rates,

and other relevant financial

considerations.

In addition, Mass. Electric,

Narragansett, and NEP (‘‘CP Issuers’’)

propose to issue and sell commercial

paper to one or more nationally

recognized commercial paper dealers

(‘‘CP Dealer’’). Initially, the CP Issuers

will use two CP Dealers, CS First Boston

Corporation and Merrill Lynch Money

Markets Incorporated, but this may

change.

The CP Issuers will issue commercial

paper in the form of unsecured

promissory notes with varying

maturities that will not exceed 270 days.

Actual maturities will be determined by

market conditions, the effective interest

cost to the issuer, and the issuer’s cash
Federal Register / Vol. 62, No. 177 / Friday, September 12, 1997 / Notices 48123

1 15 U.S.C. § 78s(b)(1).

requirements at the time of issuance.

The commercial paper will be in

denominations of $50,000 or higher.

The terms of the commercial paper will

not provide for prepayment before

maturity. The commercial paper will be

purchased by the CP Dealer from the

issuer at a discount, which will not

exceed the discount then prevailing for

commercial paper of comparable quality

and maturity sold by public utility

issuers to commercial paper dealers.

The commercial paper will be further

discounted, but not more than 1⁄8th of

1% per year less than this prevailing

discount rate, when the CP Dealer

reoffers the commercial paper.

The CP Issuer’s effective interest cost

generally will not exceed the effective

interest cost of BankBoston’s base

lending rate. However, if necessary,

commercial paper will be issued that

matures within 90 days with an interest

cost above BankBoston’s lending rate.

For the Commission, by the Division of

Investment Management, pursuant to

delegated authority.

Margaret H. McFarland,

Deputy Secretary.

[FR Doc. 97–24175 Filed 9–11–97; 8:45 am]

BILLING CODE 8010–01–M

SECURITIES AND EXCHANGE

COMMISSION

[Release No. 34–39026; File No. SR–CBOE–

97–33]

Self-Regulatory Organizations; Notice

of Filing of Proposed Rule Change by

Chicago Board Options Exchange,

Incorporated Relating to Suspensions

for Failure To Pay Debts Owed to the

Exchange

September 8, 1997.

Pursuant to Section 19(b)(1) of the

Securities Exchange Act of 1934

(‘‘Act’’),1 notice if hereby given that on

July 24, 1997, the Chicago Board

Options Exchange, Inc. (‘‘CBOE’’ or

‘‘Exchange’’) filed with the Securities

and Exchange Commission

(‘‘Commission’’) the proposed rule

change as described in Items I, II, and

III below, which Items have been

prepared by the self-regulatory

organization. The Commission is

publishing this notice to solicit

comments on the proposed rule change

from interested persons.

I. Self-Regulatory Organization’s

Statement of the Terms of Substance of

the Proposed Rule Change

The CBOE proposes to amend Rule

2.23, which permits the Exchange to

suspend CBOE members and associated

persons who fail to pay debts owed to

the Exchange in a timely manner. The

proposed rule change would clarify the

application of Rule 2.23 to former CBOE

members and associated persons. The

proposed rule change would also

provide for the reporting to the Central

Registration Depository (‘‘CRD’’)

operated by the NASD, Inc. of any

suspensions or bars imposed by the

CBOE pursuant to Rule 2.23.

The text of the proposed rule change

is as follows [new text is italicized;

deleted text is bracketed]:

Chicago Board Options Exchange,

Incorporated Rules

* * * * *

Chapter II

Organization and Administration

Part C—Dues, Fees and Other Charges;

Liability for Payment

* * * * *

Rule 2.23. A member or associated

person that does not pay any dues, fees,

assessments, charges, fines or other

amounts due to the Exchange within 30

days after the same has become payable

shall be reported to the Chairman of the

Executive Committee, who may, after

giving reasonable notice to the member

or associated person of such arrearages,

suspend the member or associated

person from membership and

association with any member until

payment is made. Should payment not

be made by a member within 6 months

after payment is due, any memberships

owned by that member [a regular

membership] may be disposed of by the

Exchange [for a special membership

may be disposed of or cancelled by the

Exchange,] in accordance with Rule

3.14(b). [A person associated with a

member who fails to pay any fine or

other amounts due to the Exchange

within 30 days after such amount has

become payable and after reasonable

notice of such arrearages, may be

suspended from association with a

member until payment is made.] A

former member or associated person

that does not pay any dues, fees,

assessments, charges, fines or other

amounts due to the Exchange within 30

days after the same has become payable

shall be reported to the Chairman of the

Executive Committee, who may, after

giving reasonable notice to the former

member or associated person of such

arrearages, bar the former member or

associated person from becoming a

member and associated person until

payment is made.

* * * Interpretations and Policies:

.01 Reasonable notice under Rule

2.23 shall include, but is not limited to,

service on a member or associated

person’s address as it appears on the

books and records of the Exchange

either by: (1) Hand delivery or (2)

deposit in the United States post office,

postage prepaid via registered or

certified mail.

.02 The Exchange shall report to the

Central Registration Depository

operated by the National Association of

Securities Dealers, Inc. (‘‘CRD’’) any

suspension or bar imposed pursuant to

this Rule.

II. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

In its filing with the Commission, the

self-regulatory organization included

statements concerning the purpose of

and basis for the proposed rule change

and discussed any comments it received

on the proposed rule change. The text

of these statements may be examined at

the places specified in Item IV below.

The self-regulatory organization has

prepared summaries, set forth in

Sections A, B, and C below, of the most

significant aspects of such statements.

A. Self-Regulatory Organization’s

Statement of the Purpose of, and

Statutory Basis for, the Proposed Rule

Change

1. Purpose

Rule 2.23 is designed to provide

procedures to ensure that debts owed to

the Exchange are paid promptly.

Presently, Rule 2.23 provides the

members or associated persons who fail

to pay any debts owed to the Exchange

within 30 days after they become due

may be suspended from membership or

association with a member by the

Chairman of the Executive Committee

until payment is made. The purpose of

the proposed rule change is to clarify

that pursuant to Rule 2.23, former

members and associated persons who

fail to pay debts owed to the Exchange

may be barred from becoming a member

and associated person by the Chairman

of the Executive Committee until

payment is made.

It is not unusual for an Exchange

member or associated person to

terminate membership with the

Exchange without having paid a fine or

other debt owed to the Exchange. By

clarifying that the Chairman of the

Executive Committee may bar former

members and associated persons for

failing to pay debts owed to the

Exchange until payment is made, the