ML17276B805

Forwards Addl Pages for Insertion in 801215 Request for Relief from Inservice Insp & Testing Requirements.Pages to Be Inserted in Inservice Insp ASME Code Classes 1 & 2 Components,Notes 1-19, & 1-12,respectively

ML17276B805
Person / Time
Site:	Surry
Issue date:	02/11/1982
From:	Leasburg R VIRGINIA POWER (VIRGINIA ELECTRIC & POWER CO.)
To:	Harold Denton, Varga S Office of Nuclear Reactor Regulation
References
068, 68, NUDOCS 8202180235
Download: ML17276B805 (4)

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WASHINGTON PUBLIC POWER n~ +Dc'+ g ~0-~7 SUPPILY 000 CA g7

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Current Assets-Operating Fund $ 6,770 $ 39,868 $ 8,208 $ 54,846 BAILANCE Restricted Assets: 4

~ Special Funds 3.665 1,051,366 1,055,031 SHEHS Debt Service Funds 4.966 797,759 802,725 5,531 1,849.125 1.857.756 (Unaudited) Utility Plant Equipment I In. Service (net) 41,892 8,874 4,960 55,726 Construction Work in Progress 5.742.511 5,742,511 41,892 5.751.385 4.960 5.798.237 Other Assets & Deferred Charges 4,515 23,835 870 29,220 861,808 87,664,213 814,038 S7,740,059 UABIUTIES Current Liabilities Operating Fund $ 3,155 $ 33,868 $ 8,020 $ 45,043 Liabilities-Payable from Restricted Assets:

Special Funds 885 391,512 392.397 Debt Service Funds 407 158.393 158,800 1,292 549,905 551,197 Long-Term Debt 53.916 6,628,973 6,682,889 SEPTEMBER 27, 1981 Other Uabilities & Deferred Credits 3,445 451.467 6,018 460,930 861,808 87,664,213 814,038 87,740,059 Construction Internal Operating projects Nuclear Projects Service (8 IN THOUSANDS) Hanford & Packwood Nos. 1, 2. 3 & 4/5 Fund Combined 51I ATEMlENTS SOURCE OF FUNDS Operating Receipts $ 13,182 $ 13,182 GIF SGUIRCE Collections Under Net Billing $ 53,802 53,802 Bond Proceeds 666,958 666,958 ANID USE Interest Income Charged to Joint Owners 37,673 33,501 38.21 5 33,501 Decrease in Restricted Funds 2,437 59,471 61.908 GIF IFUNIDS Net Change in Operating Fund (320) 422 (42) 60 Other 2 295 297 (Unaudited) 815,843 8851,827 8253 8867,923 USE OF FUNDS Operating Expenses 011,990 $ 11,990 Construction Costs $ 366,498 366,498 Interest Expense 468 119,940 120,408 Nuclear Fuel 18,350 18,350 FISCAL THREE Financing Expense 345 345 Increase in Restricted Funds MONTHS ENDED Revaluation of Investments 243 182 342,961 (718) 343,204 (536)

Other 2.960 4.451 $ 253 7,664 SEPTEMBER 27, 1981 815,843 8851,827 8253 8867,923 The Washington Public Power Supply System was organized in 1957 as a municipal corporation and joint operating agency of the State of Washington. Its membership consists of 19 public utility districts and 4 municipalities which own and operate electric systems within the State of Washington. It is empowered to acquire, construct and operate facilities for the generation and transmission of electric power and energy.

I I SEPTEMBER 27 1981 SUPPLY SYSTEM FISCAL YEAR 1982 PROjECT IFUNI9ING SUPPLY SYSTEM FUNDING REQUIREMENTS 1982 BUDGET TOTAL FUNDING COSTS REQUIREMENTS 1882 BUDGET IRIEQUIIREMIENTS FUNEED To EATE CUMULATIVE NNP Nos. 1-S COSTS lNNP 5N9E3% Nos ~-8 '5 TEP

'SUPPLY SYSTEM OWNERSHIP SHARE: WNP No. 3. Teys WNP No. 6. 9OIL S 11.000

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~ 1 ~ 11 SI lss ~ 1.1 Sl ~ E.OSO ~ 1 OSO 11.120 ~ TOSS ~ 1.1 20 ~2 210 21 2% ~ 22TT 1lS\ Sl S5 ls STS ~ S OTS 20 ETE WNP No. 1 WNP No. 2 WNP No. 3 WNP No. 4 WNP No. 6 WNPNo. 2 WNP ko. 2 WNP No. 3'NP Nos. e/5' Construction Completed Plant Size Date of Scheduled Quaner Ended Cumulative (MWe) Commercial Operation Sept. 27. 1981 Sep!. 27, 1981 Nuclear Proiect No. 1 1250 June 1986 Internal 5.5 46.9 Nuclear Project No. 2 1100 February 1984 Nuclear Project No. 3 1240 December 1986 4.8 36.8 Nuclear Project No. 4 1250 June 1987 1.0 24.0 Nuclear Project No. 5 1240 December 1987 .9 15.8

'WNp-2 is in the system's completion phase the last 15% of the project.

Construction

'Operating Projects Nuclear Projects Sefvice tS IN THOUSANDS) ffanford 81 Packwood Nos. 1, 2. 3 & 4/5 Fund Combined ASSETS

MlB(ngiglng E)Iii'eCjlcI' COJTTmentS WNP-4/5 MOTHBALLDECISION During the quarter, the Supply System's single largest A draft environmental impact report on WNP-2, com-On September 18, the Governors'lue Ribbon Panel bond sale was completed. The net proceeds of the $ 750 mil- pleted this summer, stated "operation of the nuclear plant released the results of its study on WNP-4 and 5. Their lion are expected to provide enough funds to continue con- would have no adverse social or economic effect on Han(ord recommendation, which the Board of Directors adopted at its struction of WNP-1, 2 and 3 through early 1982. The bonds or the surrounding cocnmunities." The final environmental October 23 meeting, puts the projects in a preservation mode sold at an average interest rate o( about 14.5 percent. The report will be published in December and a safety evaluation until at least June 30, 1983. By the end of this period, the funds have been apportioned as follows: WNP-1, $315 mil- will be issued in March 1982.

WNP-4 and 5 study mandated by the Washington State Legis- lion; WNP-2, $210 million; and WNP-3, $225 million. It was Following the recommendation by the Board of Directors lature will have been completed. Also, the Regional Power the first negotiated sale since the Washington State Legisla- to preserve WNP-4 and 5 for two to two-and-one-half yeacs, Council will have finished its plan and will be in a position to ture passed a law to allow that financing option. Prior to that, the Supply System organized a team to direct the orderly and consider whether or not to recommend Bonneville's acquisi- the Supply System was compelled to offer bonds on a com- immediate shutdown of the plants. At WNP-4, the craft work tion of power from WNP-4 and 5. petitive bid basis before a sale could be negotiated. force is below 50, with activities geared toward auditing and The plan to preserve the projects involves participation In July, the Board of Directors approved a $ 23.8 billion securing contractors'ocumentation, disposing of contrac-by the 88 participants in the projects, three investor-owned construction budget which covered the total estimated costs tors'nventories and maintaining equipment and buildings.

utilities and the region's direct service industries. The partici- for completing all five projects during the next six years. It Similar activities are taking place at WNP-S, where critical pants agreed to pay $ 91 million o( the $150 million cost to was the first construction budget prepared under the new construction is continuing to natural stopping points so that defer construction as well as 100 percent of the interest dur- Supply System management philosoph~ne which uses a the project can be preserved for future use.

ing construction beginning March 1, 1983. The three investor zero-based budgeting concept. The Hanford Generating Project returned to service owned utilities-Puget Sound Power & Light, Washington August 1 a(ter its scheduled summer outage. From August 1 Water Power Co. and Pacific Power & Light Co.agreed to CONTRACTS to August 20, operation was intermittent. Full generation was reattained August 24 and the project continued operating pay $ 29.5 million. The remaining $ 29.5 million will come Bechtel Power Corporation was selected as the System's from the region's direct service industries. without interruption in September for a total of 619,880,000 Completion Contractor at WNp-2 in late August. The project The immediate and orderly shutdown of Projects 4 and 5 is about 86 percent complete and Is scheduled for fuel load-kwh.

is being implemented. In addition, the Supply System has The Packwood Lake Hydroelectric Project netted a total ing in September 1983. New legislation adopted by the of 19,470/00 kWh this quarter. About 430 hours0.00498 days <br />0.119 hours <br />7.109788e-4 weeks <br />1.63615e-4 months <br /> of down taken the following steps to preserve the assets of the pro- Washington State Legislature earlier this year allows the time were scheduled due to decreased stream flow into the jects at the least possible cost: Supply System to negotiate a "systems completion contract" lake.

~ Ordered a two-month hiring freeze, except for jobs ccit- once a project is 80 percent complete. This enables the Supply System to consolidate the finishing work under one ical to the completion of WNP-1, 2 and 3.

contractor. MANACEMENT

~ Implemented a reduction in force o( approximately 344 In September, a contract including an incentive clause, In September, the Supply System's top management was Supply System employees. This reduction will cut the which could mean up to $ 45 million in profits, was signed realigned to include 12 rather than 15 directors.

Supply System's salary cost by nearly $9 million annually. with Ebasco Services, Incorporated. Ebasco will be p'aid that Sa(ety and Security is the new corporate unit responsible

~ Directed a re-evaluation of impact payments to school sum only if it finishes WNP-3 and 5 at least 10 months ahead for all health, safety and security, environmental programs districts based on construction of three plants rather of schedule. It represents a potential savings of up to $ 1 bil- and regulatory matters related to licensing by the Nuclear than five. lion for the ratepayers, since the projects would produce Regulatory Commission. Its director is John W. Shannon, pre-revenues during those 10 months and avoid additional con- viously manager of Safety and Security.

These steps re(lect the trans(ormation of an organization struction and financing costs. The previous Ebasco contract Former adminstrative director Dwight R. Frindt is the constructing (ive nuclear power generating plants to one that was essentially a cost-plus arrangement that required negotia- new director of Business Programs. Added to his directorate is now constructing three.

tions for any change a process that added cost and delays to are management policy and systems, contracts and materials Both the region and the Supply System have demon- the projects. management and internal auditing.

strated their commitment to providing for the energy needs The Supply System recently initiated a program to reduce of the Northwest. In a sense, the $150 million needed to pre- CONSTRUCTION/OPERATIONS the 1982 adcninstrative and general expenditures by 25 per-serve WNP-4 and 5 is similar to an insurance premium-one cent. The Supply System staff was also reduced by 12Vi per-that guarantees that the assets are there if needed in the The three vital components of the nuclear steam supply sys-tem for WNP-3 wece installed in late August-a week ahead cent. These decisions have been difficult, but were deemed future. The agreement to preserve WNP-4 and 5 puts those necessary to fulfillour commitment to complete WNP- 1, 2 units in the background for the time being. It also allows the of schedules set more than a year ago. The productivity at the project was a record 1.6 percent in August, with a total and 3 within their projected cost estimates.

Supply System to move aggressively ahead with construct(on of its other three projects. for the quarter of 4.3 percent.

Constcuction progress is also ahead of schedule at WNP-FINANCIAL 1 with construction progress at 1.8 percent in August, and a total of 5.5 percent for the quarter. Work is nearing comple-In the first quarter, Supply System operating receipts tion on the containment dome.

totaled $ 66,984,000. Operating plant receipts were $ 12498/00 At WNP-2, a week-long inspection by the Nuclear Regu-for the Hanford Generating project and $ 284,000 for the latory Commission in September indicated no violations. It Packwood Lake Hydroelectric Project. Net billing receipts included examination of management programs including from the participants in Nuclear Projects 1 and 2 were project controls, quality assurance, design and construction.

$ 53+02,000.