ML19242A370
| ML19242A370 | |
| Person / Time | |
|---|---|
| Site: | 05000484 |
| Issue date: | 07/24/1979 |
| From: | Allen B NORTHERN STATES POWER CO. |
| To: | |
| Shared Package | |
| ML19242A369 | List: |
| References | |
| PR-790724, NUDOCS 7908010525 | |
| Download: ML19242A370 (3) | |
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O NORTHERN STATES POWER COMPANY 414 NIC O LLE T A1A L L. MINNEAPOLIS. MINN. SS 401 FOR ADDITIONAL INFORMATION CONTACT:
Beth Allen Communications Representative 612/330-7679 7-24-79 FOR IMMEDIATE RELEASE TYRONE ENERGY PARK CANCELLED Co-owners of the proposed Tyrone Energy Park today can-celled the 1,100-megawatt nuclear power plant planned for western Wisconsin.
"We believe that it will not be possible to license nd build the project in time to meet the needs of our customers,"
caid Don McCarthy, Northern States Power Co.-Minnesota board chcirman and president.
McCarthy made his comments at a news conference today, after the project's co-owners voted to cancel the unit. Co-owners of the project and their participation are: NSP-Wisconsin Co.
of Eau Claire, Wisc., 67.6 percent; Cooperative Power Asso-ciation of Edina, Minn., 17.4 percent; Dairyl.and Power Cooperative of La Crosse, Wisc., 13 pe rcent ; and Lake Superior District Power Co. of Ashlend, Wisc., two percent.
"The co-owners belie.a that Tyrone cannot be licensed in the 1980s and that othei Options must be pursued to insure an ade-quate supply of electricity," McCarthy said. He added that NSP-Wisconsin has proposed a 650-megawa coal-fired plant to be lo-
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. cated in western Nisconsin. It is scheduled to be in service in 1987. Dairyland Power Cooperative also is planning a 650-megawatt coal-fired unit in Wisconsin. Both projects are subject to regu-latory approvals.
The mein reason for the Tyrone cancellation is the March 6 denial of the project by the Public Service Commission of Wiscon-sin. A month later, the co-owners filed an appeal of that order in Eau Claire County Circuit Court. "However, even with a suc-cessful court aopeal, the co-owners beliese a 1986 in-service dats could not be met," McCarthy scid.
The Merch accident at the Three Mile Island nuclear plant in Pennsylvania was considered by the co-owners in making the decision.
" Generally, the accident has increased the uncertainties about the future of nuclear power," McCarthy said. "These uncertainties make it lecs likely that the Tyrone project could be licensed in a timely fashion."
McCarthy emphasized that the cc;npeny is still committed to nuclear power and that "Tyrone represents th.' most economical and best method of meeting the no;ds of our customecs. There is no question in our minds that nuclear power plants ae safe, depend-abic and econ mical. Ilowe ve r , if nuclear plants cannot be licensed in a timely fa.hion, another option must be purqued," he a dd e :1.
The project's co-owner: share a LoLal Ltnancial commitment estimated at $105 million for the project. NSP's estimated $80 mt11icn portion includes about 510 million spent to date on the project and en cdditional $40 mill ion cc:rmitment for contrccted cquipment.
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As the Tyronc ccncellition occurred in 1979, McCarthy said it is appropriate thtt a write-off of the loss begin in 1979. A five-year amortization plan is anticipated. McCarthy said the company will include Tyrone costs in future rate filings.
"Ilowe ver , we do not contemplate any increases in the rates paid by our Minnesota or Wisconsin customers in 1979, despite the Tyrone write-off," McCarthy said. IIe explained that rate cases are not determined by one item of expense but upon the accumula-tion of all costs. That accumulation currently is not sufficient to warrent a rate increase. NSP's lasc Minnesota electric rate increase went into effect in Junc 1977.
"MSP.is a highly regulated company in which the financial benefits of successful operation are passed on to customers in their electric rates. Consequently, it is appropriate to pass on Tyrone losses since they were incurred in good faith through prudent activities," McCarthy said.
"overall, the write-off would amount to about $3.80 annually for the typical Minnerota residential customer over the five-year period. Of course, the ultimate effect on custome,r bills will be determined by the appropriate regulatory authorities.
"In any event, we still don't expect NSP's electric rates to increase, on average, any more than the general inflation rate over the next five years," " Carthy said.
The Tyrone project began in 1973 when NSP announced plens to construct a nuclc't power plant at the Durand, Wisc., site. The federal Nuclear Regulatory Commission issued a construction permit for the project in December 1977. Ilowever , the state permit for the project was denied last March.
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