ML19260E037

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Forwards Util 800123 News Releases.Utils Have Decided to Terminate Const Plans for Units.Reduced Load Growth Projections,Financial Constraints & Overregulation Cited as Contributing Factors
ML19260E037
Person / Time
Site: Davis Besse, 05000580, 05000581  Cleveland Electric icon.png
Issue date: 01/28/1980
From: Reynolds W
SHAW, PITTMAN, POTTS & TROWBRIDGE
To: Chilk S
NRC OFFICE OF THE SECRETARY (SECY)
References
NUDOCS 8002130171
Download: ML19260E037 (7)


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January 28, 1980

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. e....... c o Mr. Samuel J.

Chii-Secretary U.S.

Nuclear Regulatory Commission Washington, D.

C.

20555

Dear Mr. Chilk:

Enclosed for your information are copies of the news releases issued on January 23, 1980, by The Toledo Edison Company and by Ohio Edison Company announcing their respective decisions, as co-owners of the Davis-Besse Nuclear Power Station, Units 2 and 3, and of the Erie Nuclear Plant, Units 1 and 2, to terminate plans for those units.

Very truly yours,

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s Wm. Bradford Reynolds Counsel for the Applicants WBR:ats Enclosures cc: Chairman John F.

Ahearne

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Commissioner Joseph M.

Hendrie )

Commissioner Victor Gilinsky

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Comntssioner Richard T.

Kennedy)/

Commissioner Peter A.

Bradford )

Service List

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M' 0100 EDISCN CCt6 Ally EELEASE:

Janua:y 23, 1980

'76 South Main Street Wednesday a.m.

Ahren, OH hh308 C. G. Carter Director, Public Infor:aticn (216) 38h-5810 The Cc=panies in the Central Area Pcwcr Ccordinating Group (CAFCO) tcday anncunced the ter=inatica of plans to build four additicnal nuclear units pr sently in the design stage.

The estinated ccst to build these unite vas $7.3 binicn.

Mcvever, ccnstructica vill centinue under an extended schedule on two nuclear units near NcMh Perry, Chio, and another at Shippingpert, Pennsylvania.

"h'c re=ain ccnvinced after censidering ? '. cf the options, that nuciesr pcwer is a safe, ecenceical and enviren=entally supericr =ethod of generating electricity" said the state =ent issued by Ecbert M. Ginn, President of the Cleveland Electric Illt=inating Cc=pany, Justin T. Ecgers, President of Chio Edison, John P. Willia =sen, Chair =an of Toledo Ediscn, and Jchn M. Arthur, Chair =an of 'hiquesne Light Ccepany.

"Acccrdinglr, we are ccepleting three nuclear units already vell along in ccnstructicn."

Acccrdin6 to the CAPCO chief executives, the esti=ated dates for ce=pleting the three CAPCO nuclear units new under construction bave been extended between 12 and 36 enths.

Unit 1 at the Perr/ Nuclear Pcver Plant near Ncrth Ferry, Chio has been rescheduled frco May 1983 te May 19PoA; Unit 2 at the Beaver Valley Pcver Staticn at Shippingpert, Pennsylvania trem May 1984 to May 19Pla; and Unit 2 at the Perry Plant ^rca May 1985 to May 1988.

Const: uction of these units range frcm 22 to 52 percent cceplete.

The new target dates reficct a =cre realistic time fra=e for the constr. action and licensing of nuclear plants.

=

The cccpanies explained, "The political and regulatory uncertainties affecting the future ccnstruction of nuclear plants has intensified folicwire the accident at Three Mile Island.

Nuclear censtructica scheduled further in the future carries greater uncertainty of eventual cest.

In spite of cur cenvictiens regarding nuclear pcVer, this uncertainty has cc=pelled the CAPCO Ccepanies to ter=inate these nuclear units not yet under actual cen-structica in order to reduce the future ecsts to cur custc=crs and share-cwners," they said.

"These decisiens are not without risk," the join: state =ent said.

"Decisicts sde tcday vill affect adequacy of electrical sui. ply in the future, ne cc=panies are concerned abcut the reliability of electric service to their custc=crs in the =id-1980's - particularly by the 1990's.

These con-3 cerns are being centinually addressed as each ce=pany =enitcrs the grevth t

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in custccer de=and in relation to cap city," the executives centinued.

b*

The CAPCO Cc=panies' plans for 9C6 MW each of the Units 2 and 3 at the Davis-Besse Nuclear Pcwer Statics acar Pcrt Clinten, and the 1260 MW

[

each of the Eric Nuclear Plant Units 1 and 2 at a site north of Berlin E<

l':

Heights, all presently in the design stage, were teminated, The CAPCO Ccepanies--Cleveland Electric Illt:r.inating, Duquesne t'E d

Light, Chio Edison, Pennsylvania Power, and Toledo Edisen--serve acce 2.5 MI

=illica custc=crs in an industrial crescent in ncrthern and central Ohio

-t and vestern Pennsylvania.

The revised projected rate of grevth in custccer I.'

de=and for electricity for the CAPCO Ccepanies in the 1980's is in the range

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s.

of two to fcur percent each year.

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The state =ent also announced another decisicn reached by =e=bers of the CANO Grcup, The Cleveland Electric Illu=inating C=pany (CEI) vill increase its cwnership share in the Peny Plant, ncv vell alcng in ecnstruc-tien. CII, which vill build and operate the plant, vin increase its evnership of Pery 1 and 2 by 80 negawatts per unit.

Chio Edisen evnership of each unit vill be reduced by 80 negawatte.

CEI will increase its evnership in each of the two 1205 W Perry Units frec 295 3 (24.47%) to 375 W (31.11%), Chio Edisen (and Penn Pcwer)

~

vill reduce their cwnership frc= Sc5 W (41.8E%) to 425 W (35.24%).

There vill te no change in the Duquesne Light cwnership of 165 W (13 7h%), cr in Tel:do Edisen cunership of 240 W (19 91f) in each unit.

1 The percenta6es of cwnership in the 833 W Eeaver Vaney Nucicar Unit 2, under censtruction at Shippingpert, Pennsylvania, is as follcws:

CII, 24.47%, Duquesne Light 13.74%, Chio Edisen 41.,88%, and Toledo Edisen 19 91$.

The ccnstructicn schedule and percentages of cwnership of the 825 W Er.:ce Mansfield Unit 3, also at shippingpert, Pennsylvania, a coal-fired CAFC0 unit to be ccepleted later this year, are unchanged.

.