ML19320D458
| ML19320D458 | |
| Person / Time | |
|---|---|
| Site: | Columbia  |
| Issue date: | 07/14/1980 |
| From: | Judith Weaver HOUSE OF REP. |
| To: | Ahearne J NRC COMMISSION (OCM) |
| References | |
| NUDOCS 8007210390 | |
| Download: ML19320D458 (3) | |
Text
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Mr. John Ahern, Chairman 0
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Dear Mr. Chairman:
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As you~know, the Comn asion on June 17, 1980 issued an Escalated Enforcement Act in the form of a S61,000 penalty to the Washington Public Power Supply System (WPPSS) for its WNP-2 project.
In addition to specific items of non-compliance regarding the sacrificial shi: eld wall and pipe width restraints, the Notice of Violation sited other shortcomings on the part of WPPSS relating to' q'lality assurance and inspection pro-cedures.
The WPPSS enjoys a most unusual financing arrangement for WNP-2 (and WNP 1 and 3).
The Bonneville Power Administration (of the U.
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Department of " argy) has " purchased the total capability of the Project...-_ rom the supply system.
Bonneville is obligated to pay...the total annual costs of the Project, including debt service on the Bond, whether or not the Project is completed, operable or operating and notwithstanding the 1
suspension, reduction or curtailment of the Project output (Bond Statement for WPPSS Nuclear Project #2, 11-1-7 9 ). "
In other words, WPPSS has no financial liability for the project's costs or schedule This BPA-WPPSS relationship has been examined by several management consultants.
Some have criticized the arrangement as exace.rbating the management problems at WPPSS; Mr. Eugene Akridge of Theodore Barry and Associates said in congressional testimony (2/79) that " (t) here is no question but that (the financing guarantee) removes cer-tain management tensions that typically build up in an organi-zation."
Thus, the management problems at WPPSS that the NRC is concerned with may be linked to this arrangement.
While I would be very interested in your thoughts on that question, I would like instead to ask a similar series of questions.
The schedule delays and cost overruns at WPPSS have been unusually high, even for an industry plagued with such problems.
I am curious as to the correlation between such problems in the rest of the nuclear industry and any financial arrangements similar to those of WPPSS.
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Mr. John Ahsrn July 14, 1980 Page Two 1
1)
Do'any other NRC licensees (OL or CP) benefit from similar financing guarantees by a federal government agency?
2)
Do any other NRC licensees (OL or CP) benefit from similar financing guarantees by state or other government agency?
3)
Are any plants licensed by the NRC (OL or CP) a part of a. multi-plant consortium that spreads the benefits and risks of the several plants among all utility members of the consortium, even though each utility-member may not directly own a part of each plant?
4)
What other institutional arrangements are utilized by NRC licensees that might have the same effect of guaranteeing the financing of a power plant as does the WPPSS-BPA arrangement?
5)
Finally and most importantly, in each of the above categories, what has been the history of cost escalation and schedule delays?
Because the House of Representatives is now considering legislation that would extend the BPA-WPPSS type of relationship to new thermal facilities, a prompt reply to this request would be greatly appreciated.
If you need clarification of this request, please contact Mark Reis of my staff at 225-6416.
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