ML18079A770
| ML18079A770 | |
| Person / Time | |
|---|---|
| Site: | Salem  |
| Issue date: | 06/19/1979 |
| From: | Rich Smith Public Service Enterprise Group |
| To: | Hendrie J NRC COMMISSION (OCM) |
| Shared Package | |
| ML18079A769 | List: |
| References | |
| NUDOCS 7908080149 | |
| Download: ML18079A770 (5) | |
Text
Robert I. Smith Chairman of the Board Public Service Electric and Gas Company 80 Park Place Newark, N.J. 07101 201/4;30*5656 Honorabl.e Joseph M. Hendrie Chairman Nuclear Regulatory commission Washington, D. c.
20545
Dear Mr. Hendrie:
NUCLEAR POWER NEEDS OF PJM COMPANIES MEETING WITH NRC COMMISSIONERS JUNE 14, 1979 June 19, 1979 _*
Thank you for the opportunity to meet with you and discuss the nuclear power needs of.the PJM system, particularly as it relates to the licensing of Salem No. 2.
I would also like to express our thanks to your staff for their help in arranging the meeting.
In order to be completely clear in our position, I want to state again that Salem No. 2 is ready for operation and we request that the Office of Nuclear Reactor Regulation proceed with the licensing of this unit as soon as possible.
In our opinion, this can reasonably be done without waiting for further review of any matters generated by the Three Mile Island study.
As we discussed, the replacement fuel cost on the basis of full-load operation is about $600,000 a day.
Assuming an 800~ availability between refuelings, this translates to
$480,000/day.
Incidentally, while we were in the meeting, our oil prices were raised another 5%, continuing a trend which increases the cost penalty.
our oil price has now increased 400~ since the first of the year.
A one-year delay could conceivably raise utility rates by close to
$200 million for differential fuel cost alone.
In addition, the 45,000 barrels of oil which will be used for each ful.1-
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I Hon. Joseph 6/19/79 load day the unit is delayed represents near1.y 100-" of the national shortfall.
We believe any delay in licensing Salem No. 2 is unconscionable since it is not in tb.e best interest of our customers, or of the nation.
From a safety. standpoint, there is no basis for de1aying the issuance of the operating l.icense.
With regard to the Three Mile Island incident, we believe we ha.~ addressed al.l of the significant issues that have emerged.
We have already made plant changes and believe We Ca:D aco:>OllOdate _
other required *short-term items before operaid.on.
Longer-*
term i terns that* flow from our reviews or froa your analyses can be handled in a timely manner once detail;s _are resolved and implementation schedules are prepared.
'fi!ere.fore, we see no reason to delay the operation of the.pa.ant due to TMI issues.
We have requested a meeting with.. your staff to review our position on this matter.
In our meeting, we outlined the schedule for.*sta.r:LD:p, testing and prel.iminary operation of Salem No. 2.
Ai:+/-ached is a copy of that schedule for your information.
Cons'b:ucti.on is complete.
The. inspections have been finished.
Only final review by NRC remains to be 'a.one.
We understand this revi.e.w has not* been performed because the staff has a present policy of deferring licensing action.
Very few items requiring staff review remain in order to complete the processing of our l.icense.
we respectfull.y request that an exception to.- 't:ll.e present policy be made in this case.
Also attached is a fact sheet which has been'. &veioped and is being sent to the congressmen from the State of New Jersey who have expressed an interest in the l.icens-ing of Salem No. 2.
This condensed version of our concerns may be of assistance to you.
Thank you again for the opportunity to discuss our probl.ems with the full commission. If we can be of m:zy further assistance, do not hesitate to contact us.
Very trul.y yours, Enclosures
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e e
SALEM NO. 2 UNIT STARTUP SCHEDULE BASED ON AN OPERATING LICENSE ON JULY l, 1979 Activity
- 1.
Receive Operating License
- 2.
Prepare £or Core Load
- 3.
Core Loading
- 4.
Prepare for Criticality
- 5. Initial Criticality
- 6.
Prepare for Generator Sync.
- 7.
Initial Generator Sync.
- 8.
10% Power Testing
- 9.
30% Power Testing
- 10.
50% Power "Testing
- 11.
Planned Outage
- 12.
Startup to 75% Power
- 13.
75% Power Testing
_14.
90% Power Testing is.
100% Power Testing i6.
Commercial Operation Date
'6/6/79 July 1 July 1-July 8 -
July 12 August 16
- August 16 August 29 August 29
.September 4 September 19!
September 28 October 9 October 1:4 October 31 November 8 November :z3*
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Fact Sheet e
OPERATION OF SALEM NO. 2 Unit A l,100,000-KW nuclear generator located at Artificia1.
Island, Salem county, N. J. This is a duplicate of Sa1em.
No. 1 which has been in service for about two years.
status
..construction was completed on May 1, 1979 at a cost s1ightly in excess of* $700,000,000.
The unit is ready to load fue1 and begin the generation of electricity.
Licensing Several issues.remain to be resolved which can be taken care of in a £ew weeks.
NRC has said there will be a de1ay of at l.east *three months in the issuance of a l.icense.
~s is due to a lack of manpower within the Nuclear Regul.ato:cy commission and a desire to resolve certain items resu1ting
£rom the TMI accident before the license is issued..
PSB&G believes that all Three Mile.Island short-term issues have
.been resolved and there is no justification.for a de1ay in issuing the full-load license.
cost to customers For each day the plant is delayed, customers wil.1. pay an additional $600,000 due to the higher £uel cost in burning oil versus the cost of nuclear power when the unit.is operating at full load.
In. addition, in the long term, the customers will al.so have to pay about $230,000/day for each day of delay in issuing the license.
Th.is additional cost is due to the: ca.n::ying charge of the capital invested in the plant plus-. the cost of keeping the plant ready to begin operation.
For lengthy delays, the rates to customers woul.d have to increase about $20,000,000/month.
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Effect on Oil Consunction The delay in ful.1-load operation of Salem No. 2 will result in our burning about 45,000 barrels of oil/day in order to generate the equivalent am:>unt of electricity from older.
uni ts. For extended delays, this would become about 950; 000 barrels/month.
As a basis of comparison, Mr. Stuart E. Eizenstat, ASsistant to the President for Domestic Affairs and Policies, recently said that the. national oil shortfall is about s~o. 000 barrel.a/
day.
The delay in Salem would represent nearly 10% of this figure.
Another basis for comparison is that the -entire State of New Jersey consumes about 238,000 barrels/day of gasoline.
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