ML19289C811

Submits Press Release Issued by Westinghouse Re Option to Maintain Floating Nuclear Plant.Responds to Util'S Cancellation of Contract for 4 Floating Nuclear Plants. Certificate of Svc Encl

ML19289C811
Person / Time
Site:	Atlantic Nuclear Power Plant
Issue date:	01/02/1979
From:	Daugherty T EECOPS
To:	Kornblith L, Schink D, Wolfe S Atomic Safety and Licensing Board Panel
References
NUDOCS 7901250224
Download: ML19289C811 (5)

Text

'

. i y

~

NRC PUBLIC DOCUMENT R003f Offshore Power Systems .,o e ,,! .. . : y oi e -

, i i .. . , # ; !. , ,. ,i r. 3.n, :,y; January 2, 1979 Sheldon J. Wolfe, Esquire, Chairman Atomic Safety and Licensing Board U. S. Nuclear Regulatory Commission Washington, D. C. 20555 _g

-r

,Mr. Lester Kornblith, Jr., Member g% f' Atcmic Safety and Licensing Board e:,

'U. S. Nuclear Regulatory Commission """ y Washington, D. C. 20555 k P JAtt 'w c,1979 >;N,. .

Dr. David R. Schink, Member Atomic Safety and Licensing Board he '

D

/

% ,'M Department of Oceanography Texas A & M University College Station, Texas 77840

.[

Re: Offshore Power Systems, Docket No. STN 50-437 Mr. Chairman and Members of the Board:

In response to the Public Service Electric and Gas Company of New Jersey announcement of their cancel-lation of the contract with Offshore Power Systems for four Floating Nuclear Plants, including the two des,ignated as Atlantic Generating Station, Units 1 and 2, Westinghouse Electric Corporation issued the following press release which is quoted in full for the information of the Board and the parties:

" WESTINGHOUSE TO MAINTAIN FLOATING NUCLEAR PLANT OPTION "PITTSBURGH, Dec. 19 -- Westinghouse Electric Corporation said today it intends to maintain the option to manufacture floating nuclear power plants at Jacksonville, Florida, despite cancel-lation of orders for four such plants by Public Service Electric and Gas of New Jersey.

7901250 # E;[

Sheldon J. Woi 2, Esquire, Chairman, et al .

January 2, 19/9

• Page No. Two "The company said the cancellation will require significant modification of its Offshore Power Systems business plans in the near-term, including reduction of the marketing effort, reassignment of some key personnel to other activities, but that the. decision would have no material.effect on Westiinghouse earnings.

" Westinghouse Power Systems Company President, Gordon C. Hurlbert said the subsidiary would con-tinue its effort to license the floating nuclear plants for manufacture and that the company is investigating moving other manufacturing and engineering operations to the Jacksonville, Florida, facili ty.

We naturally regret the decision made by Public Service, but we understand fully the load-growth uncertainties that led to that decision,' Mr. Hurlbert said. 'Despite this decision, we continue to believe the f;oatin3 nuclear plant concept is an important energy option for the utility industry and the nation if we are to ever meet our national goals of reduced foreign oil imports particularly in view of the un-certainties in the Middle East today.

"'The uncertainties which now impede the use of the nuclear power option in the U. S. must be re-solved during the next few years, and there appears to be some movement in that direction,' he said.

OPS will continue its efforts with the Nuclear Regulatory Commission to secure a license to manu-facture floating nuclear plants and will maintain a marketing force at the facility.

"'By preserving the floating plant activity and pursuing our manufacturing license, this option will be available as quickly as it is needed when demand picks up,' Mr. Hurlbert said. 'Once the uncertainties over nuclear power are resolved, the multiple benefits of the floating plant con-cept should become compelling to the coastal utilities,' he said.

Approximately 325 people are presently employed by 0PS. Other Westinghouse business units are now

4 Sheldon J. Wolfe, Esquire, Chairman, et al

- January 2, 1979 Page flo. Three studying possible use of the facilities at Blount Island, which will determine the ultimate total Westinghouse employment levels in the Jacksonville area. The results of these studies could, long-term, lead to greater employment for the Jackson-vill.e operation."

Respectfully,-

N T. M. Daugher ,

Counsel TMD:jfs cc: All Parties per the Attached Service List.

OPS SERVICE LIST N COMESPONDENQt Sheldon J. Wolfe, Esquire, Chairman Martin G. Malsch, Esquire -

Atomic Safety and Licensing Board Stephen M. Sohinki, Esquire U. S. Nuclear Regulatory Commission Marc R. Staenberg, Esquire Washington, D. C. 20555 Michael W. Grainey, Esquire Office of the Executive Legal Director Dr. David R. Schink, Member U. S. Nuclear Regulatory Commission Atotic Safety and Licensing Board Washington, D. C. 20555 De artment of Oceanography Texas A & M University Barton Z. Cowan, Esquire College Station, Texas 77840 John R. Kenrick, Esquire Eckert, Seamans, Cherin & Mellott Mr. Lester Kornblith, Jr., Member Forty-second Floor Atomic Safety and Licensing Board 600 Grant Street U. S. Nuclear Regulatory Commission Pittsburgh, Pennsylvania 15219 Washington, D. C. 20555 Thomas M. Daugherty, Esquire Dr. David L. Hetrick, Alternate Member Offshore Power Systems Atomic Safety and Licensing Board 8000 Arlington Expressway Professor of Nuclear Engineering P. 0. Box 8000 The University of Arizona Jacksonville, Florida 32211 Tucson, Arizona 85721 carl Valore, Jr., Esquire Alan S. Ros nthal, Esquire, Chairman .alore, McAllister, DeBrier, Aron Atomic Safety and Licensing Appeal Board Panc' & Westmoreland U. S. Nuclear Regulatory Commission Mainland Professional Plaza Washington, D. C. 20555 535 Tilton Road P. O. Box 152 Richard S. Salzman, Chairman Northfield, New Jersey 08225 Atomic Safety and Licensing Appeal Board U. S. Nuclear Regulatory Commission Richard M. Hluchan, ., quire Washington, D. C. 20555 Deputy Attorney General State of New Jersey Dr. John H. Buck, Member Department of Law and Public Safety Atomic Safety and Licensing Appeal Board Division of Law - State House Annex U. S. Nuclear Regulatory Commission Trenton, New Jersey 08625 Wasisington, D. C. 20555 Anthony Z. Roisman, Esquire Michael C. Farrar, Member '

Natural Resources Defense Council, Inc.

Atomic Safety and Licensing Appeal Board 917 Fifteenth Street, M. W.

V. S. Nuclear Regulatory Commission Washington, D. C. 20005 Washington, D. C. 20555 R. William Potter, Esquire Chief Hearing Counsel Assistant Deputy Public Advocate Office of the Executive Legal Director State of New Jersey U. S. Nuclear Regulatory Commission 520 East State Street Washington, D. C. 20555 P. O. Box 141 Trenton, New Jersey 08625 Director (2) -

C Division of Nuclear Reactor Regulation of U. S. Nuclear Regulatory Commission 6

k Washington, D. C. 20555 x, us a $g4 Docketing and Service Section 9 Of.fice of the Secretary Q JAN.. 015Z3 >Whl V. S. Nuclear Regulatory Commission b\O ~,: w :- /*

Washington, D. C. 20555 J.* /d g Page 1 of 2

Mr. George B. Ward Nucibgr Power Plant Committee City Hall Brigantine, New Jersey 08203 Mr. Harold P. Abrams, President Atlantic County Citizens Council on Environment 9100 Amherst Avenue Margate, New Jersey 08402 Dr. Willard W. Rosenberg, Chairman Energy Committee Atlantic County Citizens Council on Environment 8 North.Rumson Avenue Margate, New Jersey 08402 Mr. John H. Williamson Energy Committee Atlantic County Citizens Council on Environment 211 Forest Drive Linwood, New Jersey 08221 Page 2 of 2