ML19242A702

Requests Deferment of NRC Action on 780831 Request for Extension of Facility Completion Date.Financial Effects Stemming from TMI-2 Incident Will Preclude Recommencement of Const

ML19242A702
Person / Time
Site:	05000363
Issue date:	07/30/1979
From:	Finfrock I JERSEY CENTRAL POWER & LIGHT CO.
To:	Baer R Office of Nuclear Reactor Regulation
References
2415.6, NUDOCS 7908030503
Download: ML19242A702 (2)

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{ p yQ.--QC ,_: ., n Jersey Central Power & Light Company Vad. son A.enue at Punch Sc4I Road Morr:stewn. New Jersey 07960 (201)455-8200 File: 2415.6 2421.1.1 July 30, 1979 Robert Baer, Branch Chief

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SUBJECT:

Fceked River Nuclear Sta tion Docket Number 50-363 Construction Permit No. CPPR-96

Dear Mr. Baer:

This will confirm our June 20, 1979 meeting to discuss the status of the construction program for Jersey Central Power & Light Company's (JCP6L)

Forked River Nuclear Sta tion. Specifically, we discussed the status of the ,

construction program for the Station immediately prior to the TMI-2 accident and the ef fects of the accident on the cash resources available to General Public Utilities Corporation (GPU) and its subsidiaries, including JCPSL, and their relationship to the Forked River construction program. As a result, we requested that the NRC defer tempot'arily any action on our August 31, 1978 requesc for an extensien of the completion dates for the Station.

As we had discussed, a construction permit was issued for the Forked River Station on July 10, 1973 and construction commenced immediately.

However, shortly thereaf ter const ruc tion work at the site was slowed down until earlv 1977. The reasons for such delay and the rationale for re-scheduling the in-service date to December, 1983, were described in my August 31, 1978 letter t.o Mr. S. A. Varga, as part of a requast for an extension of the earliest and latest completion dates for the Sta tion

( At tachment 1, hereto.)

As of the date of the TMI-2 accident (March 28, 197 9), engineering and construction work for the Forked River Station was proceeding on a schedule consistent wi th the December , 1983, in-service date. Const ruc tion was 5.6%

complete, engineering was 47.27% complete and the major equipment connected with the nuclear steam supply system had been delivered to the site. JCP&L's total investment in the Station was approximately $330 millica.

Following the TMI-2 accident, and because of the enormous cost s imposed on the companies in the GPU system, on April 3, 197 9, GPU announced the suspension o f work on major construc tion projects as well as other measures to reduce cash outlays. As a result, most engineering and all construction work on the Forked River Sta tion has been deferred and all on-site equipment placed in sto rage.

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Mr. Robert Baer Page 2 As we discussed at our O ne 20, 1979 meeting, JCP&L needs additional generating capacity presently to meet its base load requirements; by 1981 JCP&L will need additional capacity to meet its peak load requirements.

Neverthel es, it is clear that the GPU and JCPSL financial situation will preclud'e recommencemert of construction at the Forked River Station for some time. And, as we had c.plained during our tieeting, CPU and JCP&L have not had suf ficient time either to evaluate f ully the financial implications of the New Jersey Board of Public Utilities' recent rate decision, or to determine what further rate relief will be necessary to support the resumption o f construc-tion activities at the Forked River site. En any event, we did indicate t ha t recommencement of const ruc tion probably would not occur for at least two years.

In the interim, JCP&L will exclore other alternatives for meeting its near-term capacity requirements including the possiblity of purchasing additional capacity from Fources acated outside the GPU system. JCP&L also will investigate the feasibility of sharing with others the costs and owner-ship of the Forked River Station.

Impo rtantly, we plan to continte the program implemented during the period of the initial delay in com.nencement of const ruction; t ha t is, JCP&L will evalua te new NRC regulatory c riteria .nd apply such criteria, where prac ticable and applic-he, to the design of the Forked River Sta tion.

Additionally, we m an to advise the NRC o f any decision to recommence en-gineering and const ruc tion activities a t the Forked River site and will at that time propose any new completion dates and provide supplemental justifi-cation for extension of such dates.

In view of the foregoing, we believe that it would be appropriate for the NRC to defet at *his time any action on our August 31, 197 8, request for an extenston of the completion dates for the Sta tion.

Very truly yours, J.

fhN v Ivan R. Fin' ck, r.

Vice President

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