ML19331A956

Informs That Motion Pending Before Commission to Reopen Proceeding Because Issues of Energy Conservation Were Excluded & AEC Failed to Consider Energy Conservation in Environ Analysis.Ny Times 740119 Articles Encl

ML19331A956
Person / Time
Site:	Midland
Issue date:	01/21/1974
From:	Cherry M CHERRY, M.M./CHERRY, FLYNN & KANTER
To:	NRC OFFICE OF THE SECRETARY (SECY)
Shared Package
ML19331A957	List: ML19331A956 ML19331A959
References
NUDOCS 8007240542
Download: ML19331A956 (3)

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THIS DOCUMENT CONTAINS POOR QUAUTY PAGES , "';*ll

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QC-January 21, 1974 p, '

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. D .. .,7 6 Secretary - ..

l U. S. Atomic Energy Commission 4 N P Washington, D.C. 20545 4 l iv \

Re: Motion To Reopen Proceedings On Energy j ,

Conservation Matters - Dockets Nos. 50-329-330

Dear Sir:

There is pending before the Commission a motion to reopen the Midland proceeding because issues of energy conser-vation were excluded and also because the Regulatory Staff failed to consider energy conservation in its environmental analysis.

This matter will shortly be up for decision by the Commission. We thought it important to present one more fac-

, tual reference to the Commission in connection with this matter.

The Regulatory Staff has, in part, attempted to jus-tify its failure to consider energy conservation because it is

" remote and speculative." While there is no basis for that assertion in the impact statement itself (energy ccnservation was not at all discussed), it is equally clear that the ques-tion of 2,nergy conservation is not remote or speculative.

To underscore the serious deficiency in the Midland proceeding, we call attention to the enclosed article in The New York Times of January 19, 1974 which discloses, unbelievably, that several utilities (including one which is interconnected in part with Consumers Power Company, i.e., Wisconsin Electric Power Company) have moved for an increase of rates upon the grounds that voluntary energy conservation programs have de-creased power and utilities' sales of electricity.

I am providing five additional copies of this letter and enclosure for distribution to the commissioners.

Respectfully,

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WS; 1 AD MMC:I MyN1M. Cherry Enclosure 1 8007240 7 y' '

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Secretary U. S. Atomic Energy Commission January.21, 1974 Page Two l g21 I just learned today that Dow Chemical Company is i seriously considering abandoning support for the Midland project because of escalating costs and because energy ,

conservation measures may mean it does not need the steam sup-r posed to be purchased from the Midland Plant.

Since the only reason for siting the Midland Plant in Midland was the commitment of Dow Chemical, it would appear that the entire cost benefit analysis has now been rendered absolutely meaningless.

Thus, the March, 1972 Final Environmental Impact Statament indicates that the purchase of stear by Dow Chemi-cal was ,a major factor (Final Impact Statement at I-2) and the Regulatory Staff concluded:

"If the applicant were not to supply process steam to the Dow Chemical Co., one unit of the Midland Nuclear Plant would be cancelled and consideration would be given to transfer-ring the other unit to a different site, pro-bably the existing Palisades site." (Final

Impact Statement at XII-3. See also Consumers Power Company's Answers To Interrogatories where they admitted that the purchase of stean by Dow was the only reason for selecting Mid-land. Consumers' Answers To Interrogatories, 172-73)

We urge this additional fact as a further reason for reopening the proceedings and requiring an airing on the need for the Midland Plant in the light of energy conserva ,

tion.

Myron M. Cherr , )

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SA TURDA Y, JANUARY 19, Ign g;. W

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V Q, Rise in Utility Rates " "

Sought as Use Sags .

s~d~. laas u~ in its new 5 Electricity Producers Ash increases M" ITh98 SEEKMment clause ,

Qs Conservation Cuts Revenues RTE UCREASESA'wara're'@ 1 per cent below the normal level. Then, a monthly adjust-

, . Continued From Page 41 ment factor would be apphed to ,

By GENE SMITH customers' bills to permit cov-l I

The energy crisis has created lbut he forecast that lower sales bound to be mad, but what can erage of company costs.

The company explained thats a paradoxical new apptcach to!could reduce efectric revenues we do?'

a The Boston Edison, which if sales and demand fel! 10 per electric rates. (ltu.tses are noeby "j."s mucn as $190-mtllion

• had earlier [a filed for a 543 cent below normal, it wculd seeiung for reduced intreases demand to make up yearMr. Luce acknowledged at brought million rate increase. returned apply a cost adlustment in.

crease of "about 7 to 8 per about by voluntary conserva. the time that the " conservation mmtly to ,the state pubhc cent in the cost per kilowatt.

tion pro; rams. adjustment [is] a special fea. utility commission for an addt.

To date. fire large electriciture for our company and, as tional $13-million due to a, hour." If the decime in sales and demand was smal:er, the

>utthties-L*e Conschdated Edi*'far as I know, the first ever m reductio s of forecast revenues.

son Compe.y. the Boucn Edi.itt .e country" ne big utiiity is seekmg an rate adjustment would also be He was quick to add that Immdian hearmg and decision smaller.

en Poe Company.

C mny the theSorthern New Enplandlother utilities would make sim- because o! the magmtude of Guy W. Nichols. president.

States P . m Cc ;any and the lar i requests- the decline in its revenues. said that sales are "off s%ut W:scon<m CWtac Co.rany a Lower Sales Rise It experienced a 12 per cent.10 per cent at the same timec base apfic for rate nses nn cutback in output in December.'l,thatis continuing 1fe defende thu basis.

Philadelphia Electnc has a decline that The PhCade!p..ma Electric made known its intention of this month. A spokesman said:jadjustment clause as out l ti n to "a fait Co tlaany will fde for suen an seeking a " substantia!' rate "We realize this is a diffi increase "around the end of the: increase this year m order to cult concept to get across proUetn."toqand practical so mon th." Omers are studymg mamtam its earninr,s level. The consumers that they're going to company has predicted its sales more for less. but if we the situation. will nse by only about I per Paying for Cooperation pay't don get adequate rate relief agamst 7.5 per cent in It can jeopardize our constnte.

The ironic result is that elec, cent 1973.

tricity ustrs - tndividuals as Northern , States Power filed programs and create unemploy.

ment in this region."

well'ss busmess and industry yesterday m Mmnesota and New England Power, which,

--may be charged more be.

cause of cooperation with the, South Dakota for a rate m- crosses state lines in its service Government's request that they: crease. as it announced it would do. A area,Oc.

last filed on Jart. 3 with the ?

use less. Suchina the situat:en has:tober that Federal Power Commission to ncver happened pastispru, man said at that time. it,1clude an interim cost adjust-i.

because power consumption,ths pnmary cause for the fthng has gone up at a rate of about,was m; combmation of infla.}tionary pressures and the cost .,

7 per cent a year. i Conschdated Edison set the!of pollution controls.The company filed in St. Paul sta;te for the new approach last Octnber inr a rate increase

• when it annour'ced on Dec.12i

• that it was seekmg a 22.6 periof 20 per cent and raised thisin Dettmber

.I thejby S per cent cent rate increase over dnext two } ears, plus al"because of the slowtlown in a

" conservation attjust.jsales." A spokesman said yes.

', new ment'* amounting to 6.67 perjterday the over " all, system averaged 15 rate and cent over the two years in increase order tn make up for expected,iwould take mto account the ,

reductions in e;cetnetty revec cffects of ennservation it also filed for a 26 perefforts."

cent nues ho.n energy conservation efforts, rate nse in North Dakota. l Charles F. Luce, chatrman of The spokesman acknowledged the company. said at the time that " the guy on the street is -' _.

,that he " deeply regretted" hav4 Ang to scck the rate increases,ContinuedonPage 45. Column 3 t