ML18088A713

Amendment 23 to the Application for Licenses

ML18088A713
Person / Time
Site:	Saint Lucie
Issue date:	11/05/1974
From:	Robert E. Uhrig Florida Power & Light Co
To:	Giambusso A Office of Nuclear Reactor Regulation
References
Download: ML18088A713 (20)

Text

AEC DISTRIBUTION FOR PART 50 DOCKET MATERIAL (TEMPORARY FORM)

CONTROL NO:

FILE'ROM Plorida Power 6 Light Co DATE OF DOC DATE REC'D LTR TWX RPT OTHER Miami, Pla. 33101 TO: ORIG CC OTHER SENT, AEC PDR A. Giambusso 3 signed SENT LOCAL PDR CLASS UNCLASS PROPINFO INPUT NO CYS REC'D DOCKET NO:

70 50 389 DESCR IPTION: ENCLOSURES:

Ltr re their 10-31-74 submittal. Notes Please place this cover sheet with adv that their submittal consist of the submittal dated 10-31-74 and Pinancial Info, ~ will be designated Designated Amdt II'22. ~ ~ ~ ~ ,~~~

hereafter;as Amdt II'23, ,.to the

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Application... ~ .notarized 11-5-74

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'9eyilatoa 'LORIDA oolt;et 9oo POWER 8E LIGHT COMPANY November 5, 1974 Mr. Angelo Giambusso, Deputy Director for Reactor Projects e Directorate of Licensing @gal(p Office of Regulation U. S. Atomic Energy Commission Washington, DE C. 20545 10'l

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Dear Mr. Giambusso:

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Re: Docket No. 50-389 - St. Lucie Plant Unit No. 2 Amendment 23 to the Ap lication for Licenses In a letter dated Oct:ober 31, 1974, Florida Power 6 Light Company transmitted an amendment to the Application for Licenses Document which contained additional financial information requested by Mr. Olan D.

Parr in his letter of October 16, 1974. That amendment is hereafter designated as Amendment 23 to the Application for Licenses for St.

Lucie Plant Unit No. 2.

Yours very truly, Robert E. Uhrig Vice President 6'IOCIIHBI gAEO REU: td gQ'lt 8 CECggDN cc: Mr. Jack R. Newman gI IL CEClIQII CQIIK PCCIIEI H

3.2438, HELPING BUILD FLORIDA

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STATE OF FLORIDA )

) ss COUNTY OF DADE )

ROBERT E. UHRIG, being first duly sworn, deposes and says:

That he is a Vice President of Florida Power s Light Company, the Applicant herein; That he has executed the foregoing instrument; that the statements made in this said instrument are true and correct to the best of his knowledge, information and belief; and that he is authorized to execute the instrument on behalf of said Applicant.

Robert E. U rig Subscribed and sworn to before me this ~jk day of l974 Notary P lic in and for the County of Dade, State- of Florida

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IIOTARY PUBLIC, STATE ot FLORIDA at lARGE Jg COMMISSION EXPIRES APRIL My Commission expires ~u ~y~

80IIttKD eau ~YNAhQ sollON4 go 2, 1976

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AEC DISTRIBUTION FOR PART 50 DOCKET MATERIAL (TEMPORARY FORM)

FILE' ROM: Florida Power & Ligh DATE 'OF DOC DATE REC'D LTR TWX RPT OTHE R Miami, Fla/R.E. Uhr ig 10-31-74 11-2-74 TO: A. Giambusso ORIG CC OTHER SENT AEC PDR Yes 3

CLASS UNCLASS PROPINFO INPUT NO CYS REC'D DOCKET NO:

. 50-389

~ DESCRIPTION Ltr dtd & notarized 10-31-74 ENCLOSURES:

AMDT $i 22 to the application (Part A.

trans the following fin, info. re: our dtd, notarized 10-31-74.

1tr dtd 10-16-74. ~ ~ ~

& ~ ~ .consisting of EXHIBITS- 1 thru 7 ' . .

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(3) signed & 25 cys. ~ ~ ~ ~

NOTE: APPLICANT REQUESTED TO SUBMITT NEW AMDT TO rEFLECT AMDT g 22 ~ ~ ~ ~ ~

PL'ANT NAME: St, Lucie Unit '2 Zu/et~ q.

FOR ACTION/INFORMATION BUTLER (L) SCHWENCER (L) Zl EMANN (L) REGAN (E)

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W/ Copies W/ Copies W/ Copies W/ Copies

~ARR (L) VASSALLO (L) KNIGHTON (E)

W/copies W/ Copies W/ Copies W/ Copies KNIEL (L) PURPLE (L) YOUNGBLOOD (E)

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~OGC, ROOM P-506A SCHROEDER GAMM ILL DIGGS (L) SALTZMAN

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Q>Me4fBCT( PETERSON G I AMBUSSO PAWLICKI SPANGLER KREUTZER (E) PLANS BOYD SHAO LEE (L) MCDONALD MOORE (L) (BWR) STELLO ENVI RO MAIGRET (L) CHAPMAN DEYOUNG (L) (PWR) HOUSTON MULLER REED (F) DUSE w/input SKOVHOLT (L) NOVAK DICKER SERVICE (L) E. COUPE GOLLER (L) ROSS KNIG HTON SHEPPARD (L)

P. COLLINS IPPOLITO YOUNG B LOOD SLATER (E) D. THOMPSON (2)

DENISE TEDESCO P REGAN C /Q SMITH (L) KLECKER REG OPR LONG PROJECT LDR TEETS (L) EISENHUT FILE 5 REGION (3) LAINAS St ~ Mary e ~ ~ ~ ~ WILLIAMS(E)

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Mr. Angelo Giambusso, Deputy Director for Reactor Projects Directorate of Licensing Office of Regulation U. S. Atomic Energy Commission Washington, D. C. 20545

Dear Mr. Giambusso:

Re: Docket No. 50-389 - St. Lucie Plant Unit No. 2 Amendment to. the A lication for Licenses Document Florida Power,6 Light Company hereby submits for your review three (3) signed originals and twenty-five (25) copies of this Amendment to the Application for Licenses Document .fox St. Lucie Plant Unit No. 2 in accordance with 10 CFR 50.33(f) and Appendix C thereto, and 10 CFR 50.71(b).

This amendment consists of additional financial information requested by Mr. Olan D. Parr in his letter of October 16, 1974, and reports an increase in the cost of construction of St. Lucie Unit No. 2 from

$ 488,000,000 (per my letter of August 8, 1974, to Mr. William H. Regan, Jr.)

to $ 536,000,000. This cost increase, resulting from experience with the St. Lucie Unit No. 1 cost figures, consists of approximately $ 20,000,000 increase in contingency allowance, approximately 920,000,000 allowance for changes beyond the scope of the initial contracts and the associated intexest and escalation related to the increase in these two allowances.

Yours ver truly, Robert E. Uhxig Vice President REU:AES:nch Enclosures cc: Mr. Jack R. Newman 1125'>

HELPING BUILD FLORIDA

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ROBERT E. UHRIG, being first duly sworn,,deposes and says:

That he is a Vice President of Florida Power & Light Company, the Applicant, herein; That he has executed the foregoing inst:rument; that the statements made in this said instr'ument are true and correct to the best of his knowledge, information and belief; and that he is authorized to execute the'nstrument on behalf of said Applicant.

Robert E. Uhrig Subscribed and sworn to,before.me this '

day of 1974 Nota :Public in,and.for t e County of Dade, Stat of Florida NOTARY PUBLicat Ce oi i iorida at Large My Corrimissio>> expires August 24, 1979 soodco ly Av ro oivrisas IHsuRANcE My Commission expires

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y , Regulatory Docket No. 50-389 - St. Lucie Plant Unit No.

Financial Information) 2'Additional Amendment to A lication for Licenses Document October 31 1974 This amendment with the enclosed information is provided in response to your request for additional data in support of our application for a Construction Permit for St. Lucie Plant Unit No. 2. The information provided in this Amendment updates and supersedes the information submitted in Amendment ll to the Application for Licenses dated April ll, 1974; The responses in this amendment are keyed to the question numbers in the enclosure to Mr. Olan D. Parr's letter of October 16, 1974.

40.1 Exhibit 1 attached provides the most recent cost estimates for the subject facility grouped as follows: (a) total nuclear production costs; (b) transmission, distribution and general plant costs; and (c) nuclear fuel inventory cost for the first core. Exhibit 2 attached is the completed schedule titled, "Plant Capital Investment Summary",

using the most'recent cost estimates.

40.2 St. Lucie Plant Unit No. 2 is to be financed as an integral part of FPL's total construction program in the same general manner as other additions to its generating facilities. Therefore, as requested, the completed schedule titled, "Sources of Funds for System-Wide Construction Expenditures During

Period of Construction of Subject Nuclear Power Plant",

is attached hereto as Exhibit 3.

40.3 'PL has executed a letter of intent and is currently in the process of negotiating a contract for the purchase of nuclear fuel for St. Lucie Plant Unit No. 2 from Combustion Engineering.

40.4 As stated in the initial License Application, the earliest estimated date for completion of construction of this facility is September 1, 1978 and the latest estimated date for completion of construction is July 1, 1981.

40.5 A copy of the FPL preliminary prospectus dated October 30, 1974 is included in the FPL Registration Statement on Form S-7 attached as Exhibit 4.

40.6 The information requested under this paragraph is set forth in Exhibit 4 (Form S-7):

(a) Income Statenients for 12 months ended September 30, 1974 and for 12 months ended December 31, 1973 are shown

'n page 7 of Exhibit 4.

(b) Retained Earnings Statements for 12 months ended September 30, 1974 and for 12 months ended December. 31, 1973 are shown on page 28 of Exhibit 4.

(c) Balance Sheets for 12 months ended September 30'974 and for 12 months ended December 31, 1973 'are shown on pages 26 and 27 of Exhibit 4.

40.7 Exhibit 5 is a copy of the most recent FPL Bond Application which includes an Officer's Certificate.

Included in this Bond Application is a Net Earning Certificate showing interest coverage for the twelve month period ended February 28, 1974. There is no debt ratio limitation in FPL's Mortgage and Deed of Trust applicable to the issuance of first mortgage bonds. The applicable provisions of the Mortgage and Deed of Trust concerning limitation on the issuance of additional first mortgage bonds are set forth on page 2 of Exhibit 6 attached discussed in 40.8.

40.8 Calculations of net earnings and interest coverage for the most recent twelve month's period (September 30, 1974) using the definitions of net earnings and annual interest requirements (on debt presently outstanding) set forth in the mortgage bond indenture are shown on Exhibits 6 and 7 attached. The above calculations for net earnings and interest are subject to matters set forth under the second paragraph under "Financing Program" on .page 5 of FPL's Preliminary'rospectus dated October 30, -1974 included i.n FPL's

Registration Statement on Form S-7 attached as Exhibit 4.

The provisions of the Mortgage and Deed of Trust concern-ing limitations on the issuance of first mortgage bonds (Exhibit 6, p.2) contain two alternative methods for determining the permissable amount of additional first mortgage bonds which may be issued. Other provisions of the Mortgage and Deed of Trust limit the amount of first mortgage bonds which can be issued by requiring that the value of Property Additions be 166% of the value of the bonds sought to be issued.

As of September 30, 1974 bondable Property Additions totaled $ 515,281,481 which would support the issuance of $ 309,181,256 in first mortgage bonds. Consequently, although calculations under the second alternative in the provisions of .the Mortgage,and Deed of Trust would indicate that the issuance of an additional $ 1,165,367,920

.in first mortgage bonds would be permitted (Exhibit 6),

the amount of available bondable Property Additions as of Septembe'r 30, 1974 limits the amount of bonds which could be issued to $ 309,181,256. Assuming an interest rate of 11%, a rate considered realistic by FPL, this additional $ 309,181,256 principal amount of first mortgage ~

bonds could be issued based on the interest coverage limitation contained in the first alternative in the provisions of the Mortgage and Deed of Trust (See Exhibit 7).

0 October 31, 1974 FLORIDA POHER 6 LIGHT COMPANY ST. LUCIE UNIT NO. 2

. Re'gulatory File Cp.

Estimate of Construction Costs

'Bacelvod w/Ltt'ated Total Nuclear Production Plant C osts ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ $ 536,000,000 (Note 1)

Transmission, Distribution, and General', Plant 'Cos ts 250,GOO (Note 2)

Nuclear, Fuel Inventory Cost for First Core .26,000,000 (Note 3)

(Note 1) The nuclear production plant cost is based on (1) a contract with Combustion Engineering and estimated escalation, (2) a contract with Ebasco providing a firm price for engineer-ing and home office services, (3) engineering estimates of labor, materials, and construction costs including escalation, (4) Applicant's estimated costs for engineering, consulting services, training, startup, and sales tax, and (5) a firm price contract with Westinghouse Electric Corporation for a turbine-generator. In accordance with Applicant's established policy, 'the cost of land is excluded.

(Note 2) No additional. "Transmission", "Distribution",

Plant" facilities are required beyond, those supplied and'General for St. Lucie Unit No. 1 except for the addition of a third switchyard bay.

(Note 3) Nuclear fuel inventory costs for first core are estimated for'he supply of a complete core including uranium, enrichment and fabrication. No special nuclear material leased from the Atomic Energy Commission will be utilized in the plant.

'Exhibit 1

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October 31, 1974 PLA!sT CAPXTAL XNVES i.!ENT Sl99!ARY BASIC DATA Name of plant (St. LuCie Unit 2 Cost basis.'at stazt of construction Net capacity 810 . 10$ (e) $ 536i555<000 Reactor type Location Hutchinson Is an . T e of ooolin

. Run of river Desi n and construction neriod Natural d raf t e cooling towers Honth, year MSSS order. lfechanical draft placed Oc~t~2 cooling .towers Month, year of cormercial (

operation Dec. 1979 pipeline intake with canal; Length of workweek 40 hrs wk. .canal dischaxge to off shore Interest rate, interest pipeline.

during cons truction 8 5%/year COST SIF:""!ARY Account Number. Account Ti tie Votal Cost

{thousand dollars)'0 DXRECT COSTS Land and land rights.........,...,,...,.

PIIYSXCAL.PLANT 21 Structures and site facilities..

22 Reactor plant equipment......... ~ ~ ~ ~ ~ ~ ~ e 124 537 23 Turbine plant equipment......... ~ ~ ~ ~ ~ ~ ~ ~ 44 180 24 E3.ectric plant equipment..'...... 36,436 25 Hisc. plane equipmcnt.......;... ~ ~ ~ ~ ~ ~ ~ e 4,858 Subtotale ~ ~ ~ ~ ~ ~ ~ e ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 4 316 891 Spa e parts allovance........,.. ~ e ~ ~ ~ ~ ~ ~

Contingency allowance........... ~ ~ ~ ~ ~ ~ ~ ~ 55,689

.Subtotal.....-,.......... ~ ~ ~ ~ ~ ~ ~ ~ 0 372 S80 INDIRECT COSTS 91 Construction facilities, equip't, and Services ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ e ~ ~ ~ ~ ~ ~ ~ 39,069 92 Engineering and const. mg't. services... 13 023 93'4 0 'ther cos'ts ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ e ~ ~ ~ ~ ~ ~ ~ ~ ~ 16 450 Interest during construction............

r 95 433 S Ub to'ta 1 ~ ~ ~ ~ ~ ~ ~ ~ ~ e ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ $ 163 975 Start of construction cost.............. $ 636 669 Rscalat.ioo <luri>>g construction ( / yr.) varies galls-149)

Total plant capital iovestmcnt {4 'IQP) $ 662.~41 ei

FLORIDA POWER 88 LIGHT COMPANY October 31, 1974 SOURCES OF FUNDS FOR SYSTEM-HIDE CONSTRUCTION EXPENDITURES DURING, PERIOD OF CONSTRUCTION OF ST. LUCIE g2 NUCLEAR POWER PLANT 000) 1973 1974 1975 1976 1977 1978 1979 Security Issues and Other Funds Common Stock Preferred Stock f 44,812 40,013 0 f125, 60,000 $ 70,000 $ 30,000 f 35,000 f 50,000 50, 000 000 25, 000 30,000'70, 35,000 35, 000 Long Term Debt 148,023 375, 000 175,000 150, 000 000 200,000 250, 000 Notes Pavable 44 0 0 0 0 0 0 Other 0 0 4o,ooo 0 0 0 0 Total External Funds $ 232,892 4~255000 $ ~005000 $ 2455000 $ 230,000 $ 270,000 $ 335,000 J

Internal Funds Total From Retained Earnings, gorki.ng Capital and Other Internal Sources (1) $ 126,493 $ 168 829 $ 169.766 $ 201.748 $ 306 481 $ 326.716 $ 352.500 Total Construction Budget 8359,385 8593,889 $ 569, 766 $ 446. 748 $ 536, 481. $ 596. 716 $ 687 5OO Construction E enditures Nuclear Power Plants $ 94,017 $ 104,770 $ 128,687 4 .74,337 $ 146, 962 $ 222,347 $ 275,091 Other 865,385 489,059 44m o79 372.411 389,519 374,369 412,409 Total 8359,385 8593.889 $ 569,766 $ 446,748 $ 536,481 8596 n6 $ 687,5oo St. Lucie g2 6;584 8 59.657 8 45.837 8 69,277 8>86.747 )V5,om (1) Breakdown of Internal Sources not available Exhibit 3

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