ML19317G505
| ML19317G505 | |
| Person / Time | |
|---|---|
| Site: | Crystal River, 05000303  |
| Issue date: | 04/10/1968 |
| From: | Hill J US ATOMIC ENERGY COMMISSION (AEC) |
| To: | US ATOMIC ENERGY COMMISSION (AEC) |
| References | |
| NUDOCS 8003180793 | |
| Download: ML19317G505 (2) | |
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- UNITED STATES GOVERNMENT
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N James H. Hill, Assistant Director
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>h MJECT: VI',IT TO FLORIDA PfWER CORPORATION, MARCH 28, 1968
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Commissioner Ramey and I visited the Florida Power Corporation (FPC)
Crystal River plant for discussions of the FPC's plans for nuclear power.
Mr. Joe Perez, President, and Ed Dunn, Vice President, General Counsel, explained the factors involved in declining the option for a second l
nuclear plant'at Crystal River and 5;ithdraval of their construction per:1 for this plant. They recognized that the price for which they could have purchased this second unit was very favorable and that they probably.could not obtain a plant anywhere near this price in the future.
They' regretted that they could not exercise this option but it was not ec:nomically fecsible for : hem to do this since it would have =eant investment in a'large facili:y approximately two years before it was needed on their system.
They had attempted to make arrangemen:s for a con;; a:ive endeavor with Tampa Electric but this was not possible since Iacpa Elec:ric required power prior to the time that this plant could have been brought into co==ercial operation.
If it.had been possible to achieve cc ncreial operation of Crystal River nuclear plant #1 three months sooner, 7PC and Tampa Electric overall schedules would have =eshed and arrangements for c second nuclear unit in cooperation with Tampa 21cetric-probably could hava been achieved.
Tampa Electric will proceed with purchasing a fossil. fuel plant to meet their requirements.
The installed-capacity of F?C is approximately 1,500,000 Kwe.
The estimated growth on : heir.systen indicates doubling of this capacity'in seven years. The Crystal River plant' site includes a 400 Mwe fossil plant that is currently installed. We were impressed by the cleanliness of this plant.- An additional 400 Bie fossil plant is under construction and the construction of the.first nuclear plant (825 Mwe) which they are procuring from B&W will begin as.scon as'the' application for construction is approved.
This plant will operate co==ercially in 1972. Their next large block of power will be required around:1974.. This' probably will be a fossil plant.
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The cos: of' power with their nuclear unit-is-about 16c/=b,tu.
This co= pares
.very favorably with th'. cost of coal to the dock at the fossil plant at e
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- ha: si:e of-28c/= btu and. cost of coal to the boiler of about 35c/mbtu.
Tae lat:er number includes cos: of pulverization, handling and interest on inventory. This;is :he number that should be compared wich nuclear i
fuel cost. However, ost coal bids are made on the basis of-:he forser.
The cost.of coal'a: 1the dock includes abou: 50 par cent for cost of a
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M' l Esy U.S. Sainy Bon.is Regularly on the Payroll Sainy Plan
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' transportation from mines in' western Rentucky by. barge to New Orleans where itlis tr'ansshipped by barge to the Crystal River site.
FPC has procured
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-their-own uraniu and.has bought fabrication service from B&W.
They procured a sufficient amount of.uranien to cover their planning for, Crystal
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River #2' nuclear unit.- They'in'icated : hat they had ample. uranium and that d
they could sell some of this at the present time at.a profit'of about
$2 millzon.
Of course:they have no plans to do this.
B&W has given them an. option 'under which,they would fabricate plutonium for recycling at a
.fabsication'cos'c:not co exceed 20 per cent of the cost of fabricating uranius fuel. No coc=1tment'has been made for the reprocessing of their
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^ fuel.
Joel Rodgers-was quite complimentary about the assistance and attention
.:ha: they have received from the AEC regulatory staff and the ACRS.
They
.had no. complaints.regarding the. regulatory proceedings and were sa:isfied i
s that. their schedule wculd be met.. Their satisfaction apparently is the i
resul: of good co==unications between the company and the regulatory staff
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andiche' preparation.of ex:ensive lists of questions in anticipation of~the i
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typa of review'and questionssthat would be asked in their neecings.'
i Florida' Power-Corporation'is taking advantage of the University of-Florida's nuclear engineering; program and are' pleased with the progress that their
- personnel are making, and are pleased with the. curriculum at the Universi
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of Florida..In addi: ion, the students who era attending the University of Florida areL:aking this' opportunity to indoctrinate appropriate =enbers of the'facul:y in industrial nuclear power matters. -The FPC staff also conducts f
- sasinars for -F?C -=anagemen:' personnel. - Mr. Rodgers spoke very strongly in f
. favor of the.use of nuclear plant' simulators in the training of reactor
' operators.for licensing purposes. He was interested in the study that the
~ Cc==1ssion is.taking in the orien:ation of utility' =anagement personnel and i
-Mr.1 Rarey asked'me to~ send'the' outline of our approach to the study to V
- Mr. Rodgers.forshis'revieu.
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