ML19290C887

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Safety Evaluation Re Util 790509 Request for Extension Until 841231 to Complete Const
ML19290C887
Person / Time
Site: Beaver Valley
Issue date: 01/30/1980
From: Angelo J, Stolz J
Office of Nuclear Reactor Regulation
To:
Shared Package
ML19290C884 List:
References
NUDOCS 8002150006
Download: ML19290C887 (3)


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EVALUATION OF REQUEST FOR EXTENSION OF THE CONSTRUCTION PERfdlT FOR THE BEAVER VALLEY POWER STATION, UNIT NO. 2 DOCKET NO. 50-412 I nt roduction On May 9,1979, Duquesne Light Company filed a request for extension of the latest completion date of the Construction Pemit for Beaver Valley Power Station, Unit No. 2, from February 1,1980 to December 31, 1984.

This request was filed by Duquesne Light Company on behalf of itself and Ohio Edison Company, The Cleveland Electric Illuminating Company, and the Toledo Edison Company, all holders of the Construction Pemit which was issued on May 3,1974.

In accor-dance with 10 CFR ".ection 50.55(b), the NRC staff, having found good cause shown, is extending the latest completion date to December 31, 1984 for the reasons stated below.

Analysis The requested extension of the latest completion date to December 31, 1984 will result in an additional five years compared to the original date of February 1, 1980.

The holders of the construction permit estimate that the plant will be ready for fuel loading by December 31, 1983.

The interval from December 31,1983 to December 31, 1984 is considered to be a reasonable allowance for uncertainties in predicting all of the factors that could influence the completion of construction.

Construction was begun in May 1974 when the construction pemit was issued.

In September 1974 the permit holders virtually halted construction based on the sizeable increase in the estimated construction cost and the unavailability of capital funds through financing. The estimated costs increased from approxi-ately $360 million (1971 estimate) to $560 million ( April 1974 estimate). Con-struction was resumed in March 1976 but at a pace to complete construction by April 1981, a delay of two years due to difficulties in obtaining capital funds, especially because of the increased costs of construction. By the time construction was resumed in March 1976, the estimated costs of construction had increased to $795 million. The present estimate of construction is now stated by the permit holders to be $1.4 billion, nearly four times the original estimate. Factors which contribute to these increases are stated to be the increase in interest on capital investment, labor rates, and material costs.

Shortly after construction was resumed in 1976, the constructors encountered loose granular soil during the excavation for the reactor containment. The pemit holders began an extensive program in September 1976 of installing pressure injected concrete footings to densify the loose material.

This program was completed in June 1977 and resulted in an appreciable delay in construction since no significant work could proceed until the foundation soil was densified.

H 0021 QQ Q In their request for extension of the construction completion date, the permit holders state that additional design and construction for safety and environ-mental requirements influenced both the cost of the construction and the time to complete the construction. The permit holders state that their experience with nuclear plant construction was limited during the early planning stages, and presumably was not sufficient to estimate with better accuracy what the impact of these requirements would be upon the construction schedule and cost.

The permit holders further state that in their request for an extension of the construction completion date that there has been a considerable reduction in the load growth of the utilities which own Beaver Valley Power Station, Unit No. 2.

The permit holders state that the projected summer peak load for 1984, the year in which the unit will be ready for commercial operation, will be 13,563 Megawatts. This peak load is actually less than was forecasted for the year 1978 in the year 1971 when the project was in the planning stages. This matter regarding the need for power based on the estimated load demand is discussed in our Environmental Impact Appraisal.

The NRC staff has considered all of the factors stated by the permit holders in their request and discussed in the paragraphs above.

The NRC staff analysis finds that two factors are predominant. The first factor is the construction funding problem that developed in the year 1974 which was the first year of construction. This factor caused a delay of approximately two years and was somewhat aggravated by the soil density problem which was discovered when con-struction was resumed in 1976. The second predominant factor was the need for power as estimated by the load demand. This power demand factor contributes to a delay of nearly three years. The other factors stated by the permit holders appear to the NRC staff as having a minor effect when taken individually. When these other factors are weighed in the aggregate, they appear to contribute to the general problems associated with the large construction project but are probably submerged by the effects of the two predominant reasons.

Conclusion The NRC staff has reviewed the information provided by the permit holders in their request and conclude that the factors discussed above are reasonable and constitute good cause for delay; and that the extension of construction is justified. The NRC staff finds that this action does not involve a significant hazards consideration, and that good cause exists for the issuance of an Order extending the completion date.

. Accordingly, issuance of an Order extending the latest completion date for construction of Beaver Valley Powr Station, Unit No. 2, as set forth in the Construction Permit to December 31, 1984, is reasonable and should be authorized.

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q ohn Angelo, Profect Manager Light Water Reactors Brarich No.1 Division of Project Management llA

, John F. Stolz, Chief

[4ivisionofProjectManagementLight Water Reactors Dated: JAN 3 0 1980

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