ML19347D031

Forwards 810224 Press Release Re Delay of Facility Completion.Financial Situation Has Pushed Facility Completion Into Indefinite Future

ML19347D031
Person / Time
Site:	Cherokee
Issue date:	03/04/1981
From:	Dail L DUKE POWER CO.
To:	Harold Denton Office of Nuclear Reactor Regulation
References
NUDOCS 8103100567
Download: ML19347D031 (2)

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DUKE POWER COMPANY

- EttcTnic CExrEn. 1101 33159 C u A ntorre. N. C. 2=242 odll1 *'. 'i..

March 4, 1981 Harold Denton U S Nuclear Regulatory Conunission Washington, O C 20055'

Dear Mr Denton:

For your Information, er osed is a copy of Duke Power Company's Press Release dated February 24, 1981, on Cherokee 1 & 2 delay.

Very truly yours, M'T' g y ,, i'

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.s February 24, 1981 FROM: Corporate Communications Department Duke Power Company 422 South Church Street Charlotte, North Carolina 28242 FOR IMMEDIATE RELEASE CHARLOTTE'-- Duke Power Co.'s board of directors, citing difficulties ja attracting the necessary capital, today ordered an indefinite delay in completion of the Cherokee Nuclear Station near Gaffney, S. C.

"This was a necessary business decision. The company must reassess its ability to finance new generating stations in light of the current ,

rapid inflation, high interest rates, inadequate earnings and the depressed price of the company's common stock," Carl Horn Jr., chairman of the board

,of dt. rectors, said. The cost of constructing new generating plants  !

comprises about'60 percent of the company's total construction costs.

Work on Cherokee Unit 1 will be substantially reduced and work on Unit 2 will be interrupted, Horn.said. This reduced level of spending will afford the company an opportunity to fully evaluate its long-term options-

.with respect to Cherokee.

Completion dates for the Cherokee units were previously scheduled for 1990 and 1992, respectively,but now are pushed indefinitely into the future.

t Horn said the company' very much regrets these necessary delays because, based on current estimates of growth in demand for. electricity

.in the company's service area, it is possible that serious gower shortages iwill develop by 1990. Such shortages would seriously jeopardize the continued industrial an'd economic development of the Piedmont Carolinas,

- he'said.

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'AC002024081

Dis t ribution~: -'A , B , C , D , E , F , G , H , I ,'J , K , L , M , N ,0 -

5 :For:furthercinformation, contact Alex Coffin at 704/373-5054.

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