ML19331B049

Affidavit of RB Atwater,Cpc,Re Supply & Demand of Oil. Press Release & Certificate of Svc Encl

ML19331B049
Person / Time
Site:	Midland
Issue date:	02/04/1974
From:	Atwater R CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
To:
Shared Package
ML19331B038	List: ML19331B037 ML19331B041 ML19331B044 ML19331B049
References
NUDOCS 8007250747
Download: ML19331B049 (7)

Text

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ATTACHMENT B <

h1T1NN.r FT/C OF MICl!I0Att DS.

00&TY OF JACKSSN Tefore ice,'the undcraigned authc,rity, Ierconally e.pperxed Rote, es. Atwater, who, loing duly rvorn t.ccording to law, de;<,ses ud cays:

3. My nem ic Robert T.. Atyc.ter t.nd I c:n W Dxecutive Ilirector of htel Supply for Ocontunerc Power Cr.cpmy. I r.se responsible. for the 1rocure. rent of !.11 fttcJe (4d the nde.inistration of t 11 fuel contracts

-for e le ctric r.eneration for donsunera Power Ccupmy. I sn presently a nmber of the Pederal Pruer Ccar:niccion'c Technical Advicory Occcittee on Fue)n, the Tm ilorhinx OrrnJp on Operating Pcontrica .oa +.he Inainece tdvisory Ccocittee on federal P.eporte . In addition, I have served on t.everal ad hoc industry cernmitteca res:srdin;; varicua tr.ipects of fuel tupply.

2. On Septu:ber 21,,1(jT2, following a detailed stuiy of the

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po::pible fossil-fired gr:nernting plant olternatives f or 1(f(6, in vbich I particips,ted, Connumers Power Company concluded that oil-fired generating unitt vere not h 2enconable alternative bact.use of 6 Idt hly uncertelp t.upply of oil f or fitture yerrc. The events of this pet year have nnt eb Nyi that ecceltolan,' lent rather have reinforcc-1 it.

3 As part of n:y dutien,1 m in r-gular md frequent conte.ct with oil cupplicro in;this country, in Ct.neto s.cd elsewhere, cni I tc tesiliar with the yntient supply and 6t*.:and cituation for oil. I cm ..

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infor:ned red believe that there is not now a new it31able succe of f.upply of oil of any qualit'y t.nd in eufficient quantity which vill be rivailable is the Inte 1970 p to provide'the bacia for construction of new oil-fired 8

generating pit.nte.

4. I do ndt ctand alone in the foregoing jud;;: ment. hiolic Law 93-1593 93rd Congrepa, Novanber 27, 1973, "Mergency petroleum Al-location Act erf 1913" crates .in Section 2(n) 'The Congress bereby deter-

.taineo that ---

(1) shortages of crdde oil, naidual fuel oil end refined petroleum products caused bj inadequate scstectic production, envirocmentsi constraints, ed the un-nyailability of inports cuf ficient to caticf,9 do-mesti.e demand, now exist or tre iminent; (2) feuch cbcrtages have ensated or will create severe economic diolocationa t.n5 hardships, including icss' of jobs, clocing of f ectordee and htsinesses, re-duction of crop plectings ccd hvventing, rad cur-tailment of vital put11e cervicca, including the trr.ncportition of food tmd other essential goods; cad (3) such harrichipe and dislocationc jeoparcice the' norra1 flow of ccc:nerce and cc ctitute a national ener;;y cricic vhich ic n threat to the p.iblic health, esfety, r.nd welfare and c4.n h: averted or Pin Mted most ef-ficiently (ci effectively through pro:::;t, r.ctico by the Rxecutive branch of Goverm ant."

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On thic 4th day of Petruary,19T4, ufore re.e, a note.ry htblic i

in e.nd for caid County, personally rippeared Houert 1:. Atwnter, to me.

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):::o.n to be the arme forcon described in rad vbo executed the within in-stnment, who acknov'. edged, the cm to be his hee act an.1 deed.

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C0hsum8fS Power company General Offices: 212 West Michigan Avenue Jackson, Michigan 49201

• Area Code 517 788-0760 FOR FIELEASE DREDIATELY MIDLAND, Michigan, February 1 -- Consumers Power Company and The Dow Chemical Ccmpany have concluded a6ree=ents under which the chemical manufacturer will purchase process steam frem the utility's Midland nuclear power plant and electric energy from Consumers Power's integrated electric system.

Officials of the two companies signed the pact which calls for Dow to purchase process steam from tna plant for 20 years after it begi..s operation. Separate contracts for the sale of electric 1cy to Dow and supplies of water to Consumers Power were also executed.

The signings concluded renegotiation of an earlier a6:eement which was scheduled to expire early in January. This agreement had been temporarily extended.

Consumers Power is building the 1.3 million kilowatt nuclear plant along the Tittabawassee River, directly south of Dov's Midland manufacturing co= plex. The plant will be capable of supplying about 4,000,000 pounds of process steam per hour for Dav's production needs.

Dow will also beccme a major customer for electricity produced by Consumers Power's integrated electric production and transmission system.

Under the new agreements Dow may maintain its fossil-fueled steam and electric production plants new in cperation at its Midland complex. Previously Dow was to have closed 9cwn most of its generating facilities when the nuclear plant began operation. Since the energy l

2 crisis will probably continue into the next decade, said Russell C. Youngdahl, senior vice president of Consumers Power Company, both companies believe it would be imprudent to require Dow to close down energy producing facilities.

The availability of steam-generating capacity will give Dow more flexibility and enable us to provide for possible future expansion, according to Joseph G. Temple, general manager of Dow's Midland Division.

Temple said Dow has no specific pla'ns at this time to continue the use of its fossil fuel steam and power plants after nuclear steam is reliably available from the new plant.

"However in view of the tre=endous number of uncertainties in the nation's energy picture, we believe it is only prudent to keep our opticas open," he added.

"Dow's power plants will be capable of generating electricity in the early 1980's if this area of the nation were to find itself to be verf short of such capacity.

"Dren though the option of running our plants very far into the 1980's appears to us to be quite unattractive econcmically, we feel that retaining the option to run them if needed makes good sense for everyone,"

Temple said.

Commenting on earlier reports that D:w was having doubts about 1

renewing the agreement, Temple noted that today's signing speaks for itself.

"We've always belisved in and supported the building of a safe nuclear plant as have the majority of citizens in Midland."

1 Youngdahl said the new agreecent resolves the problem of continuing extensions of the pact. "Up to now," he said, "we've renewed the agreement 1 l

for approximately six-month periods. Now that the various service contracts J have been signed, we can focus our attention on getting the plant built."

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The original agreement betweer the two companies was signed in 1967 and ran for three years. The latest revision is the eighteenth supple-ment.

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February 1, 1974 i

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UNITED STATES OF AMERICA ATOMIC ENERGY COMMISSION In the Matter of )

) Construction Permits CONSUNERS POWER COMPANY )

) Nos. 81 and 82 (Midland Plant, Units 1 and 2) )

CERTIFICATE OF SERVICE I hereby certify that copies of the attached " Opposition of Consumers Power Company to Petition to the Atomic Energy Commission" dated February 4, 1974, together with the copies of the affidavits of William E. Kessler and Robert B. Atwater, both dated February 4, 1974, and of a press release issued by Consumers Power Company on February 1, 1974, attached to the aforesaid Opposition, and of a letter from the undersigned to the Secretary of the Commission also dated February 4, 1974, in the above-captioned matter, have been served on the folicw-ing in person or by deposit in the United States mail, first-class or airmail, this 4th day of February, 1974.

Secretary (20) David E. Kartalia, Esq.

U. S. Atomic Energy Commission U. S. Atomic Energy Commission Att: Chief, Public Proceedings Washington, D. C. 20545 Branch Washington, D. C. 20545 Myron M. Cherry , Esq .

Jenner & Block James P. Murray, Jr. One IBM Plaza Chief Pulemaking and Chicago, Illinois 60611 Enforcerant Counsel U. S. Atonic Energy Commission Milton R. Wessel, Esq.

Washington, D. C. 20545 Kaye , Scholer, Fierman ,

Hays and Handler Michael Glaser, Esq. 425 Park Avenue (Information Copy) New York, New York 10022 1150-17th Street, N.W.

Washington, D. C. 20036 Howard J. Vogel, Esq.

Knittle & Vogel Les ter Kornblith, Jr. 1154 East Grain Exchange Building (Information Copy) 412 South 4th Street U. S. Atomic Energy Commission Minneapolis, Minnesota 55415 Washington, D. C. 20545 Dr. Emmeth A. Luebke (Information Copy)

U. S. Atomic Energy Commission Washington, D. C. 20545

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