ML19273A979

Analysis of Addl Costs of Constructing Plant at Athens,Ny, Rather than at Proposed Cementon Site.Total Addl Const Costs Are $364 Million (32-month Delay Before Operation) & $591 Million (42-month Delay)

ML19273A979
Person / Time
Site:	Green County
Issue date:	01/23/1979
From:	Early P POWER AUTHORITY OF THE STATE OF NEW YORK (NEW YORK
To:	Regan W Office of Nuclear Reactor Regulation
References
GPO-783, NUDOCS 7902010166
Download: ML19273A979 (4)

Text

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POWER AUTHORITY OF THE STATE OF NEW YORK 10 COLUMBUS CIRCLE Ncw YORK. N. Y.10019 (212) 397 6200 T R U STE E S GEORG . BERRY FREDERICK R. CLARK AND CHIEF ENGINLaR

• • • '"""" \ a LEWIS R. BEN NETT GEORGE L. ING ALLS MANA E ENERAL VICE CH AIR M AN r -A COUNSEL WILB U R L GRONBERG RICH ARD M. FLYNN ROBERT t. MILLONZI JOHN W. BOSTON wiLuAM F. LUDDY January 23, 1979 g*;;o;;,r,,,,,,

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Mr. William Regan, Chief Environmental Projects Branch 3 "

Division of Site Safety & Environmental Analysis U.S. Nuclear Regulatory Commission Washington, D. C. 20555

Subject:

Greene County Nuclear Power Plant Cost of Relocation at Athens Docket No. 50-549

Dear Mr. Regan:

On January 22, 1979, your Mr. Singh Bajwa verbally requested that we provide the NRC with the results of an evalu-ation performed by the Authority in the Summer of 1978 to deter-mine the construction cost implications of building the Greene County Nuclear plant at Athens, N.Y., rather than at the pro-posed site in Cementon, N.Y.

This study was prepared primarily at the request of the N.Y. State Public Service Commission staff, and these results were discussed with the PSC staff on December 14, 1978.

Two cases were evaluated: Case A assumed a 32 month delay in the targeted commercial operation date, and Case B assumed a 42 month delay. While the study utilized Ouly 1986 as the target Commercial Operation date for the Cementon plant, we believe that the cost increases discussed in this letter would be conservatively 1cw if this target Commercial Operation date for a Cementon plant were extended beyond July 1986.

The total additional construction costs for a nuclear plant at Athens, N.Y., compared to a plant at Cementon, N.Y.

for Case A is $364,000,000, and for Case B is $591,000,000.

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Mr. William Regan U.S. Nuclear Regulatory Commission GPO-783 The constituents of these costs are as follows:

1) Lost Costs For engineering, licensing and field investi-gation effort at Cementon which would have to be tctally redone for an Athens plant, and including financing charges (2% of total amount) and carrying costs (at 7% per year) until the Athens plant reached Commercial Operation; but not including any N.Y.S. Public Service Commission licensing rework:

Case A = $89,000,000 Case B = $100,000,000

2) Carrying Cost of Usable Work For carrying costs of all engineering and licensing work performed on the Cementon plant, which could be used for an Athens plant, for the additional period of time it would require to reach Commercial Operation at Athens:

Case A = $28,000,000 Case B = S49,000,000

3) Carrying Costs on Present Equipment Contracts For carrying costs of the balance of our present commitments on the NSSS and Turbine Generator Contracts for the additional period of time it would require to reach Commercial Operation at Athens:

Case A = $36,000,000 Case B = $63,000,000 The above estimates are based upon present con-tractual conditions. Modification of such con-tracts to reflect an extensive schedule delay could result in substantial penalties, the costs of which are not known to the Authority at this time.

4) Additional Direct Costs For storage of components already committed for, additional Architect / Engineer supervision and PASNY headquarters allocation, additional con-sultants, extension of NSSS warranty provision,

O Mr. William Regan U.S. Nuclear Regulatory Commission GPO-783 and interest payment on final withheld payments for equipment, including carrying charges and financing costs but excluding escalation:

Case A = $24,000,000 Case B = $50,000,000

5) Escalation and Contingency on Additional Direct Costs and Plant Costs For escalation on costs identified in item (4) to time of actual expenditure:

Case A = $10,800,000 Case B = $30,000,000 For escalation of all other Athens plant costs through time of expenditure consistent with delayed Commercial Operation dates; and addi-tional contingency:

Case A = $190,000,000 Case B = $295,000,000

6) Fuel Costs For additional carrying costs for contracted initial core plus first reload fuel for the additional period of time it would require to reach Commercial Operation at Athens:

Case A = $23,000,000 Case B = $40,000,000 Summary The results were developed as follows:

Costs ($1000)

Case A Case B

1) Lost Costs $ 89,000 $100,000

2) Carrying Cost of Usable Work 28,000 49,000

3) Carrying Costs on Present Equipment Contracts 36,000 63,000

4) Additional Direct Costs 24,000 50,000

5) Escalation and Contingency on Additional Direct Costs and Plant Costs 200,000 325,000

6) Fuel Costs 23,000 40,000 Addl. total costs for plant at Athens

$400,000 $627,000

Mr. William Regan U.S. Nuclear Regulatory Commission GPO-783 The above cost increases for a plant at Athens were each reduced by $36,000,000 to reflect the somewhat lower artificially derived Athens plant costs based on a July 1986 Commercial Operation date as described in JointHearing exhibits J5R, J6R and J20R.

It is the Authority's belief that the above incremental construction costs of building the Greene County Nuclear Power Plant at Athens rather than at Cementon are very substantial and would have to be ultimately borne by our customers. These costs do not even include the large costs penalties that would be incurred by utilizing oil-fired electrical generation rather than a nuclear facility during the additional 3-4 years that it would take to bring an Athens nuclear plant to commercial opera-bility.

All of these additional costs are real costs to society.

For this reason we encourage the NRC staff and your consultants to consider these costs when developing a position on the relative suitability of the Athens site or other alternative sites.

Very truly yours,

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Paul J. Early Assi'stant Chief Engineer-Projects cc: NRC Service List