ML19254E576

Addl Matl in Support of Contentions.Forwards Newspaper Stories on Houston Lighting & Power Hearings Before Tx Public Util Commission Re Rate Increase

ML19254E576
Person / Time
Site:	Allens Creek File:Houston Lighting and Power Company icon.png
Issue date:	09/29/1979
From:	Baker B AFFILIATION NOT ASSIGNED
To:	NRC OFFICE OF THE SECRETARY (SECY)
Shared Package
ML19254E577	List: ML19254E576 ML19254E579
References
NUDOCS 7911010494
Download: ML19254E576 (6)

Text

. ..

d.3 /d Luu 4. ut f u.-v v A1

• v-c=,,m s;..-

c :-B r- - -

r 3 a -snAt ce tx s ,3 ,,,,,.. pg,cy. , 3 ; . ; .,

Q U. > . b . t..

. ,b.. in u C a -. . , ,2.,. [~. r g ,,,,...,z.

Q 'A % ~.:.., C. C. . "C555  :; 1.] L - ?

N m.u 5 ~ i~ - ( .; c e, l g=== .v ,. .

..u. ..

g

_ CLdL~l .~h.(. _r mpp -ct. d {

w3.&  :} Pq.4 l'.J ET E L~.J-  :~s ,ua: p- asiu .e.= . 9 ,

x, ,, ~uk. ,

z.cs Hc . ? .u.% . LL.

Q ,. =-j .

%dem.~.-4Z/Uc ').A.AL km b / 1 C< ".tt.Lt-%

ct.. _t.t L.e .

e k% .h Lu J s .-y.

~9 *i u,-

, .., ,, AL k~3A- lb~2 ,e ec  % c. g.g N'" t Pbby 47'  % e[h h ,

% .s ,..2 J H1. f , c- umx Ac n G S .

~ ~

O#.#N. '

(Lt f ~L __ csL.h a/ A. a

• L L i _1..e w r4LL. ,te 1 1 L.i. " iee h. s

[fC.WW] s we J tz ,.,,, x A tk M

'~

hd iph . . . ~ O.:. c.:..,.

{

m .o.y

=

%a.c 4 ,

> yo%h I c c 7. w ej-n,. r) .:(.L

. - .t ,~

j t

pu.y i ~t Ab .61,W i s 9 me.t%L .4 Ms tt cL A _dJl -  !

L P.G.C J eL% pn. tL.f'&5. 9 t .l

%L. 0.ci.h C.~ U.

3

.-L.

• A. L.!  :

yd~L .%. J.- a 4-H A >.

.h 5 - t: L g.  ;

WL 9 ~ y,, cJ. ,~.~.s J m t. 1 : a.

8~/ /  !.

CW:F , .iL. ec.mpq J .~t. J., ' u. a. .pc h !

t, n-v,1L.,. .;t.L. ~~u .y w L .6- K M .pLta../ pm d. L73

~

7 9t2 9~ ' t/

1287 344

9 e

• 6 r -

9 ,

DO']Ou,oL a'

, a m

t

• S ,.

M 2 C ,~, 9,~ y mC an -

.) 0 :. /3. u-v :.,U :'N.s c:.% m- r.5s. I'r d 1 h ~~d

$w. L.ke s f .9et . . A.L HL/ ,p Q

1. .g 4,C l.L J.,.LL.cr s

.L m ML

/ /

O ,N 3 ..

h.cs - .2  %%M .&s gj c.C .,. % % %.L -<! h* ~ ~^

% l , f , (,iLL s 4 a.c.gr. ..-

.g d G kk,- : ruk ( .p. 9 -<. G ) e : t. .l M ~ G. , -

c.J c... c% ' .w;L .- . n ' e:-- L . C ,

H t. - / , ,b 1 m. c.~

J

. Ji -~c 1

- L p.4 34A(,.-( .b R N c.,. ! ,

W.

.s.A.w a ;LL ( ec.m ~.ht i o : -7,

/

6/ ., wh.cl .l'~ . LL. , c L. 6.

& V W .

Q cc L. A.L t.  % 1. < f .2 .wt .c., .J u.s t ii

• e a h 4

• W *O w

e. 6.% )f , .wA -y .

9p :--%

.h H L . F 's A,tc,. J.~- 3.rt t. .p m L ~L.

9 6 t-ci, bi

_hs.c,b. j 7t 3 QL.L d. LyJ.

c A w *cs .L.a A J.J.

nn.ml A T

.A.p. q '

i

/979 c,,Jg/ A.kL u.

+: s C Lu ALX N

% lM ~7 e dMA .

l'y' 'l f~L- -

h.A u, i 9 't a 1287 345

I fC,7 9,

D ww sm

n- U .>. i. c o, A c e. c M w .n 3 ,

r u.

d)f CW=~hw  : '*

G l.. Gu a , __' 2 l ? h.

• e j9:, ~u. , ,

, e lh

.: q --g .q,--v'-~7"""r-----------...._. .. . ....--,,c .

HL&? saa s Broton & Root report

~.

- . . - . J. .,U '.' ..' ~

a

. . . . a~ z . 2 . _ * .- ~ ~ . - -

oh N- ro;ectiv6i; J scas eceptwe By FEED BONAVTI.L p ^ h L, . ,3;.d '1

. M_' ,

.- m

'madtfw disclosurn in swont testimoty before a ordy a 363 mi!; a rate hike.' and be city of Hou Post Ansan Barena std..Itza.sP:2ile Utility F=""**=a ""mNr as & . ton approved a 344 mdlion increase withs 1:

n .a l ! t .. - m public hearbg ogreed into the ut: lit 7s applica- jurtsdiction. A PUC of" cal said tte staff recer AUSTIN-ne president af Houston L!ghting & con fer a 3131 c:1lson rate increase mended only 45 percent of CWIP te included .

Power Ca. sad here Thurscay that Erewn & Root De beanngs,which are expected to last more the rate base. ._

Inc. gate tus ".tm - *""' information on the ' than two weeks. were punc=ated Thursday by Jorsian said me staff's recommendatica w-stama of engt=cer.ng worr en *be treabled South some 200 chanting Houston. area residents who (nadequate and would !tu-t the company in a Texas Nuclear P yct which has cost cvCprotested tSe rate-increase request, saying $e tractng inveset:ent capital. se!!!ng bonds x se:

a=ounung to humeds of =Ellens cf collars. poor would be forced to choose between heaung ;ng its stock, wruch alread/ is going for 'ess ib .

Don D. Jordan sad Erewn & Root eftcais a> their homes and cooxing deir meals tms winter :f boot value. He said HL&P has a cor:structen ;r-sured HLAP and its three partners.bt the 'theirelectric billswere ra: sed. -

gram of about 33 til'Ica planned f:r 1.?SG-C. ar

=uinti"!on docar preiect that engmeec=g wors The status of t'.e STNP was a =aior point of most of me projects cannet be delayed ;f.ce *ir:

was a petee.t cecpieted in March 13 E wtectDe

. interest among HL&F's oppoo-nts on me rate b- !s to meet demand.

5 st sacx :.f eencretewas poured. crease issue, smce the company is askzag t3e But Nancy Lesaikar. a PUC attorney, quire Sut. Jordan sad. HLAP tater d:.s.M the- FUC to nww ll aof the 3690 mdlion in " con- Jordan at 'ength about the cost overmnr of 2 ce.g:neet g vers at that peine was "se:ncthat ' st:ucto:r worr in ;rogress" - or CWIP - in its STNP, taett impact on HLAP's rate base de i:

ess tan 13 percent acmany ecmpleted by the ~ rate base.'One ~ opponent charged CWIP alone ac- . volvement of Rrown & Rcot 5 ee =atte: an arr3.tect-ersneer (Brewit & Root) at the timet .mmfad for 2 3 million d the requested rate tukes what HLAP was doing about the simation.

eenstt acton started." .- ..- wtile another said HLEP wants its customers :D-Jer.*.am, woo also is chief executive cincer of'(, stead ofinvestnrs to pay for cortstruction presects. 2 was ettv%d : ate last mentn-that SINP b HIJP; wnich fa the manag:rg paraterin SINP; c..

The PUC staff has recommended HL4P ger _.~** . ' N 'Please see RLAP ' pace 15.

.e m * ----~-v ~ ~ . ~

.'.=&N. a r,er,-w&w'5Wh e.-.-~.~.,~-~.w~>S"'- - -

. . ,.* v ). e.6,w.ws.0W "k M $ * *~ A'**" ' *~ **: . .

• .f _; :. '- p y_ ; _ . y : .m.ya

• g,.s c,._.- .-_ . .. . . . - _ _

~..~- . , . .

A

n~n M ~ ~ -em-- - -. . s . . ; - -

~. , ,m[y;r~. m; by the spring ef 1977 to. oversee the ' ' ptTsident who has had direct des!!ngs with SUP

~

" ~ .. sultfug !!rm From page 1 -)' -

was. rrom erst to tast, be sud. the comintane t== the witness stand tate T:n=seay aan echoe.

-,,. repcrta said "the ecgineering work was certamly muctr of Jordan's testimony about the enginee-tnz

- m into another cost over m - this one at least ' behind? . ' -

war.t betng at least partly respoestble !cr tb 5400 -* n - that threatens to at least double . But the HL&P' president would not gtr beyond, delays. But be also blamed sot 1 cond1 corms a::c 2.

the original 115:111on cost of Oe project and deiay that point when be was crossetamined a short need to buy = ore steel. -

use at least unci 13% HIAP's share of costs la time later by anorney Mike Shiriey, y mq In protesting the rate 6 crease request =e=

de awdaar powered, efec=d.e generacng plant in c=m mity P2blic Service Ca., and dectbed to bers of the Houston chapter of the Assocancn a Matagorda County south of Bay Ctyis part of theNcharactert:e Browtr & Root's accons as ettber " Com=mnity Orgs+"'n= fer Refor= Now com CWIP it wants passed on to its ensmmers now. -.w ~.sdon or a mms h.

. trough this rate in4= vase.

N.plained poor persons in RIAP's service ares Assed by f mh*1r how tauch of the STNP engi-T 1akset by Sbtriey wtat HI1P intended to do - could not affar,1 anocner ineease in the:r elec=

abant the sitnacon, Jordan reptfed. "What we in, service.

seermg wort had been completed when construc- tend to do is get that project built as qtuct:y as . - " ACORN members want jtzstice " one of the:

• • on verit began. Jersian repiled "We gtx that "" we can get it txif!r and at the lowest cost."

• =r"%f. "We want to be able to beat our hcce construction permit in December of 1973 or ' "Is there anythbg gomg to be done by MLap and cook our meals. Do we beat or do we eat?"

November or December d 1715. . . . We wentinto . to see that the people :tsoonsible for the delays Endly Iewts of Houston told the beanngt "Nc the Seid on that petnect . . . (Brown & Root imil.

• bear the cost of the delays!" Shirier asked. .

..v am="t of c=aritacle contnbudo=s ut:1 ever emse cated) 2ere was 60 percent of the engineertng "You are mm Mg that we 2nd fanit . . . ."

ote;1eted. and the pro:ect was kicred off and the HIAP's reputation of takmg 2'om me poor anc Jordan said. "We oevtously are not gotng to -

giving to tte rich."

rst conc =ete was poured in Maren of IS?6.

. waive any of act rights, but we are not in a posi. CIens Van Slyke of Houston. representng

". . . I understand that subsequent reports tion to say whether we have any recourse at **is ACORN. said be reason HLaP wants 100 percen:

have been gtven to us that there was not 60 per. . tinr " ...~ ...

tent of the ergmeet.ng completed at ce cme that

.~..of its CWIP included in be rate base is that ce Jetian also said Brown & Root get the arcti.. Three Mlle Island nuclear power plant scared te prelect started, and that there was somerting temr:1. 6aro-a.g and eccstructen contract less taan 10 percent acma!!y compacted . . .*

banks and other 'endem from lending nroney oc through negotiacorts with HIAP and other build. noelear-powered projects.

Jordan said HIJP caugnt on in a very short ers and not through compecuve tnddi::g. '"io HI4P is turmng to the PUC and demand-

"ma that sometting,,a.s a:=se and tred a coo. George W. Oprea Jr., HLAP execunvs vice big that the people pa; for it," he enarged.

, . = - -. . -

g . . . = .

. . a.== # -

• w I =

.u ~- n cima -

() m ac9,

~

ht.I,? R 9(u /71 k9 m.m km.x

.. ~..-~s . . . - . c .. . . ., , . . . ... . . . . , ,

. $ s.

i,. i n ' .; w bH2.cmcw j 2 8 [75 3

"~ ,$

%.m ,

- g aa m t_

HL&P hearing focuses m

on management po.w.iges

., ; ,,r....-~*

u. Am BY RICHARD FISH

~'

I. Chronicia Anstta Bureau ,

- e. : . .a

~'PUC'Iawyer Nancy Lesfukar said the AUSTIN- A heanng on tta nquest of.

-~'"~'~~~'*""~ '

• ~

• Houston Light:ng and Power Ca. for a agency staff is mterested because its C7 plaining the rate hike request, the

$1714 million rate increase turned uno an recommendauort for a rate orcer by the uu, company said the need for new power L enminauon of the company's manage- c three-member regulatory commission plants t serve the fast-growmg Houston I

ment pracuces. ' "probably will say that we I;eed to take a th C05 area ts a mam factor m the rate request.

The statY of the Public Utity Com=:s- } closer loos at HI d from a =anagement Jorcan said Thursday "I th:rjc de c un-

, pomtof view." su sion recommenced Thursday that EL&P try clearly :s gemg to be lookeg at an receive only a $83 million annual m- . Oprea'said HL&P already is takug a """ imIated ecenemy over the next several atase, or anout one-ttard. of what the. ., closer look at Brown & Root's pericr=-

j ance on STNP. and has tnpled the num. years. The pcce of everything ts gemg to l htute utity :s seek:ng. . s

' berof HLkP support statT and inspectors T4 to up substantially for every delay.

The mam d:fference in the ,  ; rut .that's way we're trymg to eudd as mucs-i said a PUCstaff attorney. is that '

0"looking over their iBrown & Root's>

is ., 1 shoulders" * " ace.,t stu:!as ;mssitie as qtucx1y as poss$ie."

4 asx:ng that allof some 3690 million worth 1 & dictit ..

1. Opres said he sensed two years ago thst S' ' ' ' ~

of construccan work in progress be count-ed us deter = ming :ts aDowable rate of .} a more sinngent audit cf the plant con-

""~'#

' . G' # * "' f return. . ' ' s . *" J .

strucconwasrequired. . .

"Sometime m 1977 I had that httle tug- cattort Y [ #; "' --'

'Ibe PUC staff recommerded Irxdudin protect i only45percentofcurrentconstruction. g..' sat the ptt of my stomach that we oug :t to 7do sotnethmg about takang a cieser loox."

? anc "2 The utility comm:ssion's staff also Oprea said. .

we rvat i recommentied of Hi&P be concuc.ed. that a n anatem-nt review (. Powerccmpanymanagement also were SP 3A

..g qu1=ed by consumer group attorneys, tion.'Ya

~ Questions aoout the utdity's operations t I ranged from potnted quenes en the pur- (g and members et'the Houston-basec As-

. , soc:ation of Commumty Organcat:en for ***

• c::aseabout gauon of a luxury whetherc:otor home to the company is intarro- 9 . . Reform Now filled the heanng room um ma

_ coing an adequate job o(overseemg con- g g3,, ;demonstranon.bnefly for a sign-carrymg, enacting bngade, ~

stracuen of the South Texas Nuclear Pro- y "We are-fired up and we can't take it 1 e ject near Bay Cty. 4 HIAP ts pmject manager for the-rm-,~ g anymore," the group of mostly e!cerfy HCc

-clear generaung plant., wtuch is.beirp-.g, # persons called m umson. then began e shouting, "The people amted wdl never ,M r built by Brown & Root of Houston for a g g. bedefeated." o r consortmm cf utities that includes the Representatives of the 200-member Cty of Austm. Cty Public Service Board in"San Anton:o and Central Power and gf

c. I. group md from prepared statements, rose by n Houston Ca on the GulfCoast. O A .concemung increase i; Oprea. HIAP operations vice mately t%000HL&P fortog:ving

!ast year char:ty,appron-. ry. HCC of g3 pres: cent, testifled here Thursday that h:s ,,, "No r.aount of chantable centnbutions Dr. Jame company didn't reali:e how !ittle engt- g gudl erase HIAP's reputation of tak:ng dent affai ug '. neenug wort had been done om theO gTfmm the poor =ent of 3

. .and givmg to the neh," one ~ !ast fail.

rnac

$ cons!trucuan ear plantpermit atfrons the the t:ms it recetred Nuclear C"'k' ACORNa memberre:d.. Carol Barger The toi,of Austin. an attorney for Regulatory Commission.. Q ACORNand the Consumers UrJon, ques- the colle*

s. .-

yg. 'Doned HlAP presidem Don Jordan about skills br

',t-

g. Oprea sa2dthe companydLthought cent of the engmeering arai arctuteemre work had been doce by Brown is Rootat fthe compar:y's 80 purctase per.w. earlier or horne.

an,g tzs year e of preside,

' a $47 000 luxury mot mer be 7, the tune the pro}ect was beensed. Joctian said the refuc!e is used to trar:s- Houstr e . port cor:muruty leaders and c:ty counc:1 He 4 . A later aun:t found that only 8 percent., members to major HlAP facit:es.

p of the ecgmeeting actually had been com- stren.

9 pieted at the t:=e.  ;,, - He said the Execuuve brand motor provt

, Cast overruns and a four' year delay in y -bome was bought as a " reasonable" way = era

, complecon of the plant have caused Aus- mes -d transponig the pown companfs ms- The g tingussned guen and called :t "a leglu-tin and San Antonio ten demand. g mata busmess erpm" 7. ther indepercent audits of the protect manage- pregn 7

ment as weil as the contractor. Of!!ciais

,,7 - Under Ms. Barget's mterroganon. Jor-dan also testfied that .Ts company car :s a repair ji')fU Q] } g in both c:ttes also have raised the possdale id The g 3.) ear-old Iancoln.

sty oflawsuits over the expensive delays. . first e H1AP's role in STNP was exacused.g wr

• In its own " Rate Far:s" pubhcacon ex-HISD even thougti the cost of delays is not re- . . . . - ,

i 3,, ,

Deeted in the current rata mcrease re- ,,

quest. hs, ** ,

4

(,, ,g, ##

{. , a q~.a

~

IiL&P 'I......

official says .",

.JC, U.

b (C M C M id-;

. f- 1-. O  ! E b (. M; nuclear plant cost 1. b jf79 q .

~

~ . ~-

-;, q Ry Id

~$

, , g .-.r. ,, = -

t0 6Ch/ 4 } pt.#~h ' ~ A for her.

She also asxed Opres about eper's

. . ..-** - -' " - from NRC inspectors in 17'S that ?.ey

~

~ ' ' were .ct gett=g cooperation 'rc= qual.

By FRED BONAVITA ity control personnel and wnat was done o ,. p .g- .

, about them. Oprea said he " vaguely Post Austin Barena D D og D

f rem,n. eyed sor=e cf t3e compiaint3 and that mey were handled by "stad"

. AUSTIN - As official of Houston d - -- 3 Lignung & Power Co. said hete Fr: day and not by hun di.ectly.

ce esn=ated cost of compienng Soum ; ,

At one point Friday mor:mg. Jon2 Texas Nuclear P oject has risen to about ! ' man Day. represennng a consortium of Indusud.es in the Houston area opposing m1Hlon and ee propcys,about,f=

years behind schedu!a.

.4 s . From page1 me rue increases effects on m.m.

9. '

asned be PUC hearing examiner to cur.

Cecrge W. Opres Jr., HIaP executive vice president, told a Tesas Public Utill. e power plants when de crm Imehed its tail Sarger's quesnons about cost over.

ty Corrmiten mmim that when the crst ventures in tne celd. -

runs and otner aspec.s of rne SB'P on-

. the grounds they did :ot have a direct

~

crst sack d concrete was poured in W. "wec made no attempt to proselyt:e estmates were that ce project would people, but we tr:ed to hire people as bearmg on the rate case.

cost n hillion and be completed in 1980. , "Therv !s a limit to the relevance :f they became avaEable." Oprea told hee.,, the Souta Texas project here." warned

' Die latest esdmate was 200 uulllon . He also told her he did not " sign off higher than one made a month ago which ; on every engineering specification or . Exammn Carolyn SMm. but m e prompted an angry Austin Mayor Carole drawing made in connection with the .

McC:edan to !emand an outside audit of' construction of STNP altnougn he did - #, . -

• HL&P's performance as managng partN checir the =destones" in tne project.: lowed the line of questionmg to conunue ser in STNP. The etes.ot Ausun andi He said he would have needed a staff ofi bnefly.

San Antonio and Central Power & IJ43r "to to cceck every detail of the worr. Meanwhile in Houston, a Brown &

Co. of Corpus Christf are the other part , ' ' Asked how HLLP expected to get an Root ocie:a1 acsnowiedged *he construc-ners in the venn.tre. .

~

. '" accurate cost estimate of the proieer: tion company had misirformed HLAP u2 Oprea gave the latest cort egures in' - without a complete set. of plans. Ceres Marca 17f6 about the status of engineer.

the second day of testmeny on HIAP'sl said he had to rely on Brown & Root's ing werx completed on the South Te.us application to the PUC for a n"3 nuHion , experience and experdse in 'te cdd and Nuclear P oject.

rate increase. Most of de questioning of ' ' 4 Steve Grote, a vtce president in Brown company wit--* both days centered i - O - & * : n * + mam m -- * & Root's power div'1.cu, sa:d me 60 per-cn its management _pract!ceL wh3 ' l cent estimate N based on the 00mpa.

. :v w w. .E~ g C ~~ " '~ " ' ' '

• NY'S 2.nalysis at that eme of the secpe cf

-..e.. , . mat the Erm's cost egures were checked . w rx involved in tte piact.

emphasis on its hand:Ing of the troubled  % Ugm was based on w on '

SI'NP.

against comparable figures for other gooddana analysis at mat m." he -

Oprea, who is the company's represen' il nadon.. nuclear-powered pism acound the! said, adding that it was checxed agstr.st tative on a canage: cent committee that 2Mnon secoes of work b omer si.u.

runs de consaction program for SINP. "When I hfre a contractor to build a *

j. house. I don't give item a cost.p 's con. - lar nuclear projects.

on a dady bas:s. spent most of Friday on But a later retrospective analysis the witness stand being quizzed about 4 i tract? Hutuers told him. **I pt a c s .

pricet and _any change in that pnce ;s ' showad only about 20 percent of the eng.

how closely be monitored the eng=eerms .

neenng wom was .h at cat sm:e.

and architectural wort done by Brown & j. dim to awon't.

spee:Sc change order."

Root .'nc. of Houston, the grime m.W "You find any centraccr that . - -

wtIl take a nuclear contract on a fixed . 'Me shd. '~ ' ' ~ ~

tar on SNP for dose aspec.s and $* . price basts, mainly because of the con.

COE5"CUOQ- "I know Jordan said 'O per ent." he

. . stantly changing regulatory climate." added. "but that's not our analyszs"r He and Don D. Jordan. HIAP's presf, dent and chwi execuuve ocicer tessted

..Oprea snot bacz. .. - . -j Grote said the miscalculation returted u "

ad m hito be - ~ r The EIAP ocic:21 also was unable to1 h.cm changes in reg natory requirements by tell Carol Barger. atterney for consumer" engfmemt - ,

, and project design enanges dat g eatly wed was W percent c=npleted in Marc 5 , groups opposmg the full rate increase.

Increased the amount of engmepj:g M when emcacton som was begun .waar the costs were to correct 24 viola. . . work required. ". --

• ttorts of Nuclear Regulatory Commis;aon : "'Ite scope of tis job has increased .

but later learned it was only between.3 and 10 percent complete then. Er.ginee.4 ". regulations found at STNP by inspectors, by about 13 percent a year compounded

!=g wort bas only recently reached O - ,j.mw . . he,a s.ud be wouN-t t' e cgures .

3 n . e. m m-W he said. "That compares per e t of completion. both me ~

favorably with other nuc! ear ;rejecie* -

' Grote said be does not feei me-*=gi.

~

Harriet E. Hubacker. dtd..eNx 't'.e j r'eermg situation caused any comtrue, ety of Houston in oppostion to the ratit '

tion delays.perceived.

"The $b was ;ustygy inc,rease, }LAh than ngmany  ; -

ha a ,em asked ,,ed oOprea n ,an whether ,o,e s, hHIAR , } .re eeemo estmme me had had some expenence in nuclearn age of engwmg wm , men @%, M

, . I ' ~'# *~~"~P P!ssse see Naelear/page 2 ;L N pleted, saying that .s nowdW analy:ed. He did say it .x now "past N -

percent." -

~

el * ,.

.b "*'.

'_. A ~

,, , ......e > . * . *

.~ .'

() C.( O :~- h ~

!b 2

UM C9 bM MCLb (g g m e .? I

.s. ,

v y f ' ,1 f -

J { c. . f f. Sl Ar  % D. . &

/ ()

AF "D 3'%

gd D m 41 A m

j

.,s. -,

a

-N-aOwer cro,ieds g

, When. the South Texas Nue: ear- Profect was begun. -

I, .

. company of"e*ait testised here, the Erst generat:ng unit tar ge t OT-oC,UGS' J. '-

.lonS : was projected to be m operanen in 1980 at a cost of $1 ba . i s

e ei.

'}-

Now compleuon :s est: mated for 1984. and H.7.AP ts prejecting a cost of 32. bdhon for de project.

rMe 11'<0 l

l P:tsident Jordan was askea if.HIA.P would ask. rate .'

,. .s . . ,,"..- payers to bear the acnaucnr: cost of the project.,"That's correct," he sa2d.

BY RICHARD FISH

.--ejb$*

.b -.

Re Housen powe company is the =anag=g parte

. i Chrosacie Ans:in Borean .' 3- s

. . ,, . . , n ~; .. [. .%.., ;r

• of the STNP and wt!J rece:ve the bulk of:ts power output. .

Otter ,ar..ers

, . m de STNP conscruum are the c:ty of AUSTIN -The Soud Texas Nuciesr Projet. itseost Ausun. San Amomo's City P ct'c Service Board, and and delays - agam was the target of saarp quesuons by

~

{ Central Power and Light Co. .

pants in a public hearmg on Houston I.Jgnt=g and. Aust:n atter ey Carol Barger representmg several Co.'s request for a 51:3 million rate toc ea*e. .

consume gmups and an acumuckar organmauon. enti-Harnet Hubacker, assistant Houston c:ty attocr.ey,. w Fnday asked IC.AP Vice President George Oprea wny ' g yaUed me ] cmc 2le overruns a the-the company wasn't awam earher of factors that could. ..Ratepayes shou causedelays m compleuen of the nuclear plant. theirpoorplanmng,,1dn't beHL&P.

she said cf absebeg allcosts be. of i

Oprea and HL&P President Don Jordan.'testifed Jacan was asked a N opg day of de hearm;

- eermg Thursday if e.nythmg cou!d be done to see that tne

- Tht.rsday work on the that they thought 50 peretnt of 2e enY"r:own P"PM & "8p nscle for the delays are te!d respons2'e ror Root Inc. of hreject ouston hadat- de beenumecon L1epleted by plant received a . de cost. .

construction permit from the Nuclear Regulatory Com- lpo1 w. four years away fmm comp!etion. we'n not n a The said they found out acer a'.ater investiga'tlon ,

f ca,sition useNordan to said.say whether we .

m have any  ; recourse or a that.only 8 percent of the engmeenng was done at the .

D.ai 9 m mteqed in da,ng is m e bat pmjet ,

time the preject was per:mtted. '

. -  ! .as q y and cuap

. When 1 bare a contractor to bul!d a house. I expect to

, p stuon weampnse.tly=Q he w as we~- can.ecen_idenng the see a plan before I start builcing. How can cere be suca .

M san W med & cm:stmon hs :s a mam .j adispanty between tt:nkmg you're c0 percent doce and fac*.e m t.b rate b.cnase . gest. W company 6 :

Endmg you'm cuiy 8 percent." Ms. Hubacker asked. psaad they expat m nturn regulariy to the PUC wnh .

. ."When you see your house plans. you don't see con- '

H".rder rate nqm m adow mem m mp pace wna '

I struccon plans, yotr see a general layout." Opria said. ot.storparea growth. 4- -

g. .:

"You don't see all the detat!s. the calls.the placemect of. The power company is seeking to have 100 percent of condmts.the locauon of switch boxes and tn:sses. - - 16Wmamon wonW construc'im wMk 33 pmgress'

• "You depend on the expertise of the house builder. be. t mc h rate base. Rat base is onefactor.

said..*Likewise. with a coc! ear power plant you get an'- > fny rate A&E'(Architecture and DigineerugJ contractor wno has- e be t E

but!!a number of pfacts.

i The lawyer for Houstorr. whic!r :s interveemg':n the t " , L- h PCC'stan has 're'- o a nM M-'W Q c percest of CWIP'in .he rate base. and has proposed

' rate case, also questioned the cost-ph:s mancer, of ;ay. allowmg HIAP onfy a 583rmilion rate merease.

mers of Brown & Root fbr be power ;! ant Work. Men I' The hearmg !s espected to- take at least two more hin a contractor to build my bocse. I oon't gtve them a weeks. A Snat de6sion on any increase will be mace by the bree appomted PCC corn =2ssioners ader they have h

ntractor to take a nuclear nmwd t. West =.'my and egence from 6,heanng.

pmject on a f!xed4ee basis, mamfy because of the chang g-' u.x : e tta , a m, . ; . ,. , . .. ; ,; .. ..

mg regulatory chmate wtuch-can requ.tt unexpected a ' .

+ ^ m Opres said. . . , . . _ . . . a 1287 349