ML19308D922
| ML19308D922 | |
| Person / Time | |
|---|---|
| Site: | Crystal River  |
| Issue date: | 02/12/1975 |
| From: | Anthony Giambusso Office of Nuclear Reactor Regulation |
| To: | Kelly R HOUSE OF REP. |
| References | |
| NUDOCS 8003200671 | |
| Download: ML19308D922 (5) | |
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Nonorable E erd Kelly House of Repres'egtatives
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Dear Mr. Kelly:
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i't is my pleasure to weapend to your inalsIry,s.. dated January-23.:1975, to 3
Dr. R., Seamans Jr./ Adefuistrator, ; Energy 'Research and Development Admin-s
~ ~istration,' concerning ' the.1 tter of Mr. ' P. Artis' to you, dated January 18,
~
1975, and ~ his communicatier.
January 7, 1975, t'o President Ford concerning l
the nuclear gen'erating plant, t stal River Unit 3.
As you know,' the-Energy / Reorganisatsion 'Act of 1974 has established the Fuclear Regulatory; Commission.(NRC)'which will be responsible for the principalD1(censing and _ r'egulation inglving all. facilities and : materials _
associated with the construction and operation' of nuclear reactors.
'1h e transfer of these former Atomic Energy Consnission (AEC) functions and personnel took place on January 19, 1975. NN The NRC staff has recently completed their-Safdty Evaluation Report and
^
Final Environmental Statement for Crystal River theit 3.
The Florida Power Cttporation (FPC),1by letter dated October 21,-197'4 informed the 'staf f g
that its ' construction ef f ort had been reduced -by 75 percent due to limited c
availability of funds;. _'.,This ' slowdown in construction atetivity for Crystal,
c River Unit 3, which, as of January (1,1975,_ was 95.5 pdgent coeplete, will result in' an 8 to 12. month delay with - completion of the f"aqility,now q
estinated..to be March.1976.
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.N The financial constraints-now being experienced"by FPC are endeet' N A -- ;'-e the utility industry at this time. -Inflation has M construction costs -for' both nuclear and fossil power plants to increase at a rate of approximately 20 percent. per year.
Increasing ocerating costs and deereasing _ demand growth rate make it very dif ficult for ;
utilities to~ebtain financing ~ through sales of bonds and procurement \\
of bank loaks. - From Juise 30. 1974 co January 17,1975,ut11itleshave\\
~
cancelled er -delayed a total of ~ 130,000 regawatts electrical of nuclear \\
capacity ecce planned er ordered. The annual energy equivalent for this '
deferred ' or cancell'ed nuclest capacity represents 1.3 billion barrels of oil or 500 million tons of coal.
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serable Richard Kelly
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The flgancial review responsibilities of HRC are cevered by Section 182, Paragraph A, of the Atomic Energy Act of 1954, as amended, and by the s
provisionq of 10 CFR 50.33f, 10 CFR 50.71b and Appendix C to Part 50.
These provisions of, law define the scope and depth of financial-informa-.."'
.c tion requir'ed to be ' submitted by a utility in order thrt a finding may be.
T made by ERC 'e the financial qualifications of the, utility to pursue,the
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activitles pr(oposed for ;a_ construction permit or operating license :for af ' ( w nuclear power f ility. Amelioration of the at111 ties ~ financial problema,3 %F -,
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does,. not rest wit in the jurisdicties of NRC.
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t.uw m s, Pres 1 Kent Ford, on ' January. 15, 1975, has proposed
'ler,islatire which would '
. a five month. maximum for' rate or service -.
.g proceedirgs, require paes-rough of ineressed - fuel ' costs of utilities -
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and. allow constructine work ' progress to :be taken into account in rate
. e increases. President Ford alg plans -te 'embait ' le2 slation-to expedite
~
i s2 licensing and rapid melection sites for. nuclear power plants.
Enclosed you vill find a recent sp'egch by ICr. L. M. Huntzing, former Director of Regulation, A:IC, which hrther details the financial problems now facing the utility industry.
Toub particular attention is called to h.
pages 8 and 16 through 18.
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..I trust' the above'.information; will be ofKp -in.pyoviding a respense[to Mr.1Artis's concerns. :If:I.can be'ef furtbe g, * %m%g (please List
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s A. Giambut,so, Direct"or Divisien of Reactor Licensing "
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' DIS RIBUTION:
' Speech'by L. M. Nuatzing
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CONTROL NUMBER FILE LOCATION Rep. Richard Kelly (Fla.)
8093 oATEOP oOCUMENT ACTION COMPLETION DEAOLINE 1/23/75 2/7/75 TO ACTION PROCESSING DATES PREPARE FOR SIGNATURE OF:
A.6.
.agea 1/29/75 Dr. Robert Seamans, ERDA Choir.
inser. Reply Direct.r.F Regul.ti.n
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D ESCRIPTION EUf hrigin.1 O C.,y O Oth., ~M J/'2[73' REMARKS I.
Enc 1 ltr fm Paul A. Artis re impasse in the construction of Crystal River.because of lack of funds and the possibili ty of Government assistance Y
Encls: ltr fm Artis-1/18/75 N
1
" to Pres Ford 1/7/7c; SECY 75-2197
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RECOMM oEo Giambusso f/ action 1/31/75
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Case
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Docket Files) 50-302 PDR
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4-00 NOT DETACH THIS COPY DIRECTOR OF REGULATION
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