ML20003C058

Testimony Re Miami Valley Power Project Contention 13 on Applicants Financial Qualifications & Potential Financial Effects of Decommissioning.Prof Qualifications & Certificate of Svc Encl.Related Correspondence

ML20003C058
Person / Time
Site:	Zimmer
Issue date:	02/11/1981
From:	Estes R MIAMI VALLEY POWER PROJECT
To:
References
NUDOCS 8102260543
Download: ML20003C058 (22)

Text

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r I1h UNITED STATES OF AMERICA NUCLEAR REGULATORY C0'C4ISSION g#

% xung BEFORE THE ATOMIC SAFETY LICE'; SING BOARD

'e k In the Matter of ) 8/ N

) Docket No. 50-358 CINCINNATI CAS AND ELECTRIC COMPANY ) g  ;

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(Wm. H. Zimmer Nuclear Power Plant) ) T FEB 171981 * -

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,LDugushg,& W DIRECT TESTIMONY OF RALPH ESTES RECARDING CONTENTI0' b'./, [ g I

APPLICANTS' FINANCIAL QUALIFICATIONS **. L., Q CP ,

TESTHONY ON EEEAIE OF MIA:E VALLEY PC'E.R PRMECT FES 2 -; ;gg y , -

State of Kansas ) " Q g roa,

) ss. b, County of Sedgwick )

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Ralph Estes, having first been duly sworn, hereby states as follows: I am employed by Wichita State University as professor and chairperson of the Department of Accounting, although I am nor representing nor speaking in behalf of Wichita State University in this testimony. My further qualifica-tions are fully delineated in my curriculum vita which is attached hereto and made a part hereof as " Exhibit A."

The Miami Valley Power Project has raised the following Contention:

Contention Number 13, Applicants' Financial Qualifications The equipment used in the construction and operation of the plant will be excessively costly and, in effect, beyond the financial capability of Applicants. Applicants are financially, unqualified to operate the plant because of escalating co'st's; My testimony addresses this contention: .

Although construction and operation of a nuclear power p" ant involves many factors that may have a financial impact, one of these factors -- decommissioning costs -- has ger.erally received little attention in past analyses. Pres umab ly this is because decommissioning is expected to occur years in the future, and _ '

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. _2-1 because nonnuclear plants have not involved substantial decommissioning costs. My testimony focuses on the potential financial ef fects on the applicants of decccmissioning the proposed Zimmer Nuclear Power Plant.

In their responses to questions 2 and 3 to Miand Valley Power Project's request for additional financial information, applicants projected data from a study by the Atomic Industrial Forum to arrive at an estimate of total decommissioning costs of $35,882,146 in 1983 dollars, and further projected that these costs could be met through annual deposits of

$3,551,610 to a sinking fund for a 33-year period. Applicants' estimates are too low because of inadequate allowance for cost escalation, and are unreliable because of problems inherent in using the Atomic Industrial Forum data.

First, with respect to allowance for cost escalation, applicants assumed a 6 per cent annual inflation rate from 1975 through 1979 and a 6.5 per cent rate for all years af ter 1979 (i.e. , from 1980 through the year 2120, when they project that final dismantling and removal will occur). The term

" inflation" is usually used to refer to increases in the Consumer Price l Incex (since 1978 two CPIs have been calculated, with the CPI for all wage j earners and clerical workers most commonly referenced). According to the l

U. S. Department of Commerce the Consumer Price Index increased at an average rate of 7.8 per cent from 19 75 to 19 79, and increased by 12.4 per

! cent during 1980 (compared to 11.5 per cent in 1979) . B us ines s k'e ek (Feb rua ry 2, 19 81, p. 38) projects an increase of 12 to 14 per cent for 1981. A more conservative index, of ten used by industrial firms, is the Gross National Produce Implicit Price Deflator. This index, according to the Department of Commerce, increased at th'o rate of 6.5 per cent f rom 1975 9 , - - ,

y - -

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-_y. _ _ < -

to 1979. My 1981 estimate based on prelimint.ry Depart =ent of Commerce figures is 8.1 per cent. The pattern of change in this index is informative:

Change from previous year 1976 + 5.3%

1977 + 5.8%

1978 + 7.3%

19 79 +'7.5%

1980 + 8.1%

Because of escalator clauses in many union contracts and the indexation of social security and other retirement benefits to the Consumer Price Index, we now have f actors built-in that will prevent the rate of inflation f rom falling to the historical levels experienced prior to the 1970s.

These general price indexes may not adequately reflect cost inflation-associated with construction, operation, and deco =missioning of a nuclear power plant. Philadelphia Electric Company projected, in June 1978, capital

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cost estimates for coal and nuclear plants in 1988 by escalating current costs at approximately 12 per cent per year (per " Electric Power Generation Economics" by Vincent S. Boyer, Vice President-Engineering and Research, Philadelphia Electric Company, June 1978). And cost estimates for the Zimmer plant have escalared much more rapidly than the general price indexes:

the estimated cos t of the facility has grown from $288,000,000 in September, 19 72 to S A,067,320,000 in November 1980, a rate of cost inflation of approxi=ately 18 per cent per year; while the estimate of annual operating costs has increased- f rom SS3,000,0d0 (including deco ==issioning) in 1977

to $259,915,200 (not in'cluding decom=issioning) in 1980, an average annual increase of over 70 per cent per vear.

The uncertainty and risks surrounding future decommissioning of nuclear power plants, including questions of federal, state, and local restrf etions and regulations, availability of permanent burial sites, possible disallowance of entombment or mothballing, security issues, and the possibility of more stringent safety requirements, combine to make extreme cost inflation more than a mere possibility. My calculations are therefore based on two annual rates for decommissioning cost increases for 1980 and beyond: 8 per cent, reflecting what I believe to be a reasonable projection of industrial cost increases into the future taking into account the cost escalation built into labor contracts; and 10 per cent, reflecting what I believe is a more realistic assessment of the risk and past experience of cost escalation for nuclear power.

Applicants' decommissioning cost estimates may now be recalculated using the actual increarein the Cross National Product Implicit Price Deflato r f rom 1975 to 1979 of 6.5 per cent, and the two rates of 8 per cent and 10 per cent, just discussed, for succeeding years:

Net total annual decommissioning fund deposit required over assumed 33 year operating lifetime:

Per applicants, based on 6.0 per cent inflation 1975-1979 and 6.5 per cent for succeed'ng years

. S 3,551,610 Based on actual 6.5 per cent rate of inflation 1975-1979, and 8 per cent. for succeeding years 13,9?l,278 Based on actual 6.5 per cent rate of inflation -

19 75-1979, and 10 per cent for succeeding years 132,352,407 The foregoing projections are not based on a facility-specific analysis by applicants of decom=issioning costs for Zim=er Unit 1; they are derived

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instead from estimates published in 1975 by the Atomic Industrial Forum (AIF). AIF estimated the cost of several decommissioning alternatives for a reference 1176 MWe boiling water reactor, and also estimated a percentage reduction f actor for a 550 HWe BWR. Applicants have stated that they l

interpolated between these two capacities to obtain initial estimates, in 1975 dollars, for the Zimmer plant, and these were then escalated to 1983 dollars at the rates previously cited. In other words, applicants' estimates of decommissioning costs are based entirely on estimates developed by l

another organization in 1976, without reference either to the specific characteristics of Zimmer Unit 1 or to any knowle'dge or experience concerning decommissioning costs that may have been gained since 1976.

Besides the possibility that the AIF estimates may be outdated, they may have been too low in the first place. The project manager noted that reviewers had expressed concern that the costs epoeared to be underestimated, and he

' further noted that the cost estimates in tr.e =tudy do not include a contingency factor, " typically on the order of 25%" ("An Eng.aeering Evaluation of Nuclear Power Reactor Decommissioning Alternatives - Surnary ' deport," National Environmental Studies Project, Atomic Industritl Forum, Inc. , N' ve=ber o 19 76, p . iv . ) . lihen consultant John S. Ferguson applied the decommissioning cost esticates from the AIF report, he factored in an allowance for contingencies at 25 per cent (John S. Ferguson, "The Capital Recove,ry' Aspects of Decom-l l

missioning Power Recctors," Public Utilities Fortnigh tly, September 25, 1980, pp. 34-42) .

In light of diese questions over the original estimates on which applicants' decommissioning cost projections are based, it would seem prudent to consider other approaches to estimating decommissioning costs. I understand that Connecticut's Public Utility Control Authority has approved a 10 per cent

negative salvage charge to consumers to provide for decommissioning costs of Northeast Utilities' Millstone Nuclear Power Station at Waterford. And Nuclear Engineering International (June 1979, p. 38) recently reported, "The general consensus is that the cost of dismantling a nuclear station will be about 10 to 15 per cent of the original capital cost, escalated to the time of decommissioning." Applying a 10 per cent factor to the November 1980 es timate of $1,067,320,000 for Zimmer provides a decommissioning cost estimate of $106,732,000 in 1980 dellars. Assuming a 33-year plant life, 6 per cent tax free return on the deccmmissioning fund (as used by applicants),

and an 8 per cent annual rate of cost escalation, this would require an annual fund deposit of $17,508,316 in 1983 dollars. At a 10 per cent rate of cost escalation the required annual fund deposit, in 1983 dollars, would be

$33,894,236.

In summary, we can evaluate the potential impact of applicants' underestimation of decommissioning costs on shareholders, ratepayers, and the applicants th ems elves. The latest data available to me indicates that co==on shares outstanding, earnings per share, and percentage participation in the Zimmer plant for the three participating companies were as follows:

Common shares Ea rnings Per cent outs tanding per share of Zimmer (12/31/79) (1979)

Cincinnati Gas & Electric 27,233,399 S2.59 40%

Columbus & Southern Ohio Electric Company 16,345,951 $2.84 28.5%

Dayton Power & Light 23,835,462 $2.01 31.5%

Consumption by an average size residential consumer is assumed to be 7000 kilowatt hours per year (actual consumption by applicants' cus tomers is not known but should be reasonably close to this estimate) . An average plant capacity factor of 65 per cent will be assumed, in accordance with the U. S. General Accounting Office's suggestion (" Analysis of Estimated Cost for Three Pacific Northwest Nuclear Power Plants," U. S. General Accounting Office, July 30,1979, p. 4 of cover letter to Congressman Wer.<er). Since it is not clear at this time as to who will bear the cost of decommissioning, an'd especially the excess cost due to underestimation and underprovision by applicant companies, these data will be used to project the impact on the different decon=dssioning cost estimates on each group (all amounts are in 1983 dollars):

Cost to shareholders Charge per year to CG&E C&SOEC DP&L average residential customer for decom-missioning cost

1. AIF data, 8 per cent cost escalation ($13,991,278 annual deposit) S 21.50 Cost per share S0.21 $0.24 $0.18 Per cent of 1979 EPS 8% 8% 9%

2. AIF data, 10 per cent cost escalation ($132,352,407 annual deposit) S203.39 Cost per share- $1.9 4 _ $2.31 $1.75 Per cent of 1979 EPS 75% 81% 87%

3. 10 per cent of facility cost, 8 per cent cost escalation (S17,508,316 annual deposit) $ 26.91 Cost per share $0.26 S0.31 $0.23 Per cent of 1979 EPS 10% 11% 11%

4. 10 per cent of facility cost, 10 per cent cost escalation

($33,894,236 annual deposit) $ 52.09 Cost per share 59.50 $0.59. S0.45 Per cent of 19 79 EPS 19% 21% 22%

_ 8-The preceding calculations show the amounts that will have to be either collected from an average residential customer each year, or absorbed by each share of stock annually, to provide for required annual decommissioning fund contribut'ons ender each cost estimate.

Applicants have indicated that they believs an annual deposit of S3,551,610 vill be suf ficient to provide for all possible futare decommissioning costs.

What will berthe financial icpact on applicants if they do deposit only this amount annually? The following tabulatica shows the shortfal? or fund deficit in the year 2016 (at the anticipated chutdown date with a 33-year life beginning in 1983), in both 2016 and 1983 dollars, under dhe four cost estimates developed herein:

Fund Fund balance provided by required applicants' De fici t Deficit (year 2016) estimate __ (2016 dollars) (1983 dollars)

1. AIF data, 8 per cent cost escalation S 1,361,955,283 $345,724,958 $ 1,016,230,325 $ 80,169,324

2. AIF data, 10 per ,

cent cost escalation 12,883,602,200 345,724,958 12,537,877,242 539,840,426

3. 10 per cent of f acility cost, 8 per cent cost escalation 1,704,314,394 345,724,958 1,358,589,936 107,177,707

4. 10 per cent of

! facility cost, 10 per cent cost escalation 3,299,372,209 345,724,958 2,953,647,251 127,174,494

_9-I have taken an essentially conservative approach to estimating the financial impact of decournissioning costs on applicants. I have not allowed for possible property taxes charged during a possible 104-year entombment period. I have not considered the tremendous financial impact of premature shutdown. I have not dwelt on the dif ficulties of obtaining access to permanent burial sites nor the possible charges for such sites. I have based my calculations on the assumption th at the funds collected f rom ratepayers to provide a decorrnissioning fund will be exempt f rom income taxes, although I understand this is not currently the position of the Internal Revenue Service. The cost escalation rates I have used do not reflect the much higher escalation rates experienced it, recent years for nu: lear facilities generally. My purpose has not been to exaggerate the potential fiaancial impact of decommissioning costs, but to provide calculations that s how the potential impacts on applicants and their ratepayers and/or sharehsiders from very reasonable alternative possibilities.

/

LgG Ralph Es(tes

'wn Subscribed and Sworn to before me this // day of February 1981.

, Mcr

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M Notary Publi,c" My Commission expires: (r -)f- I AI DOROTHY L RICHTER NOTARY FU3LIC STATE OF KANSAS MY APPT. EXP. 4 .7 i-3 u

Exhibit A EALPH ESTES Professor of Accounting Curriculum vita Wichita State University TD D cN: O'A

" C^ * "

D.D.A., Indiana Univeruity (1967)

Q W*hi h'{ u IF L fua M.B.A., University of Kentucky (1963)

U.S., University of Kentucky (195))

ACADEMIC EXPERIENCE Wichita State University, Professor (1973-present)

University of Texas at Arlington --

Professor (1971 ,1973)

Associate Professor (1968-1971)

Assistant Professor (1966-1968)

Northeastern University, Visiting Professor (Summer 1969)

Indiana University, Teaching Associate (1963-1965)

University of Kentucky, Instructor (1962-1963)

BUSINESS EXPERIENCE Accoanting and management connu1 Ling '1966-present)

Federal Election Commission (on put ic imiact of camp.ign audtt pro-cedures and financial reporting r iluitements; also to monitor, at the FEC's roguest, a review by Arthar Andersen & Co. of FEC procedurcs, t.o insure freedom from bias)

Environmental Protection Agency (on eeunomic value of noncompliance with pollution control requirements)

Arthur Andersen & Co. (on corporate social accounting)

State Senate of Kansas (on the state budget)

Kansas' Department of Planning and Research (on cost determi, nation)

! Volunteer consulting 'to numerous minority-owned businesses, public interest groups, and anti-poverty organizations, generally on systems and procedures-Practicing CPA (1963-1965) l Staff accountant, Owens Owens & Hisle, Lexington, Ky. (19G2-1963)

Staff accountant, Arthur Andersen & Co., St. Louis and Chicago (1959-1962)

Administrative clerk, United States Air Force (1953-1956)

I l

l PROFESSIONAL ACTIVITIES AND MEMMERSHIPS Certified Public Accountant

! Accountants for the Public Interest --

l President. (1979- )

Vice President (1978-1979)

Executive Committee (1977- .) .

i lloard of Directurn (1977- )

Chair, Executive Director Search Committee (1979)

I Chair, Membership Committ ee (1970-1979) i Chair, Committee on Eclations with Co11 cues and Students (1977-1978)

Long-Range Planning Committec (1978) i ... --- - . . _, , , _ . _ _ _ _. _

Rolph Eates Vita Page 2 PRO?ESSICNAL ACTIVITIES AND MEMBERS 111PS (conti nued)

Tocrican Institute of Certified Public Accountants American Accounting Association --

Committee to Nominate Outstanding Contributions to Accounting Literature (1978-1979)

Research Editorial Board (1976-1977)

Committee on Accounting for Social Performance (1974-1975)

Editorial Board, The Accounting Hcview (1973-1974)

Accounting Educator Award Committee (1972-1973, 1973-1974)

International Accounting Committec (1971-1972)

Committee on Application of Learning and Communication Theory to Accounting Instruction (1970-1971)

Committee on International Aspects of Accounting Teaching and Research (1968-1969, 1969-1970)

Rescarch Committee on International Accounting (1966-1967)

Research Project Consulting Committee (Simmons & Barrett project)

AAA Delegate to Ninth International Congress of Accountants, Paris (1967)

American Institute for Decision Sciences Financial Executives Institute (197,0-1973) --

Chair, Dallas Chapter Education Committec Greater Wichita Area Chamber of Commerce --

Community Livability Committee Legislative Committoc Chair, Education and Culture Committec PUBLICATIONS Books and Monographs:

Dictionary of Accounting (Ca mbridge : The MIT Press, forthcoming), cloth and paperback editions.

Corporate Social Accounting (New York: John Wiley & Sons, 1976), 166 pages.

Japanese edition published by Chuo Keizai Co., Ltd., 1979: translated by Kiyoshi Aoyagi and Takatsugu Nato. Taiwan edition prublished by Modcen nook Co., Taipci, 1977.

Accountino and Society (Los Angeles: Melville Div. of John Wiley & Sons, 1973), 411 pages cloth and paperback editions.

An Introduction to Financial Control and Reportini in Multinational Enterprises (Austin: Dureau of businesr Rencarch, The University of Texas, 1973), 89 pages. Coauthored.

Accounting for Excellence: An Evaluation of the Ielative Quality of Irograms in Accounting (New York: Laventhol Kt ekstein florwath & llo rwa th ,

1970), 20 pages.

l 4

Ralph Estes Vita Pd4c 3 PUDLICATIONS (continued) #

Jaurnal Articles:

"The Profession's changing liorizons: A survey of Practitioners on the Present and Future Importance of Selected Knowledijc and Skills," The International Jnurnal of Accounting r.ducation and Rencarch, Spring 1979, PP.

I " Accounting and Public Service," The Accounting Review, April 1979, pp.

402-408. With Gerald 7.cisel.

"An Experimental Study of the Dif ferential Ef fect of Standard and Qualified Auditors' Opinions on Investors' Price Decisions," Accounting and Business Research, Spring 1979, pp. 157-162. With Marvin Reimer.

"On the Present and Future Importance of Accounting History," The Accounting Historians Journal, Fall 1978, pp. G3-65.

" Achieving Practical Relevance in Accounting Education: A Survey of Public Accountants on the Prcscnt and Futurc Import 1nce of Curricular Arcas," The Woman CPA, October 1978, pp. 7-12.

" Social Accounting in a Manufacturing Company: An Action Rescarch Study," The Journal of Contemporary Business, Winter 1978, pp. 33-43.

With Nicole Zenz.

" Social Accounting in Japan," Accountinr*: Kinyo Kaikci (Japan), April 1978, pp. 45-50. With liiroshi Yoshida.

" Corporate Social Accounting," Accounting: Kioyo Kaikci (Japan), January 1978, pp. 65-69. With Iliroshi Yoshida.

"Improvi.ng Executive Decisions by Formalizing Dissent: The Corporate Devil's Advocate," The Academy of Management Review. October 1977, pp.

662-667. With Theodoro licrbert.

J "A Study of the Effect of Qualificd Auditors' Opinions on Bankers' Lending Decisions," Accounting and Eusiness Research, Autumn 1977, pp. 250-259. With Marvin Reimer.

" Standards for Corporate Social Ecporting," Management Accounting, November 1976, pp. 19-22,26.

"A Comprehensive Corporate Social Reporting Model," The Federal Accountant, December 1976, pp. 9-19.

" Caveat Exsecutor: A Warning on the Misuse of Linear Hegression,"

, Managerial Planning, January-February 1974, pp. 29-34. Coauthored.

"The Joint Probability Approach and Reorder Point Determination,"

Production and Inventory rianancment, 2nd Quarter 1973, pp. 50-56.

Ralph Ester: Vita v u;x, Ianc 4

=

Journal Articles (continued):

"Socio-Economic Accounting and 1:xternal Dicecta.r.:-ics," The Accountinn Pcview, April 1972,lign. 284-290.

" Application of Cor.munication Theory to Accuunting Inrtruction," in Rcport of the Cor.mittee on A}, plication of I4:arning and Cor manication Theories to Accounting Instruction, The Accountim McView, Supplement to Vol. XLVII (1972), pg . 268-275.

"A F.snking of Account.ing Programs," The Journal of Accountanev, July 1970, pp. 86-90.

"The Accountant's Social Ecsponsibility," The Journal of Accountancy, January 1970, pp. 40-43.

"An Assessment of the Usefulness of Current Cost and Pricc-Level Infor-mation by Financial Statement Uscrs," The Journal of Accounting Research,

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Autumn 1968, pp. 200-207

" Professional Education for the Mature Accountant," Canadian Chartered Accountant (now CA), March 1968, pp. 193-195.

" Comparability and Flexibility: A Proiweil Sclution to tbc Uniformity

• Dile e.3," The Financial Analysts .tournal, May-June 1906,1 p. G5-60. With Homer 15rown.

Other Articles:

" Social Reporting in Japan," in The Status g Social Reporting in Selected Countries (Center for International Education and Research in Accounting, The University of Illinois, 1978), pp. 73-80.

"The Corporate Social Accounting Model: An Information System for Evaluating the Impact of Corporations on Crowth, Fesource Use, and  ;

Specific Constituent Groups Within Society," in Accountine,and Corporate Social Responsibility (The University of Kansas, 1978), pp. 103-109.

" Social Accounting -- Where Art: We anel Where Ane we 0,ing?" 197G-1977 Distinguished Speaker Series (The University of Kentucky, 1977), pp.

15-28.

" Evaluation of a Proposed Social Reporting Podel,' in Accountancy in_ the 1980s - Some Issues (neston: The Council of Arthur Young Profcssors, 1977), pp. 159-167.

"The Inefficient Markets Theorem, or why There Will Always be a Need for Social Accounting," in Bridoing the Cap, Gary *ohn Previts, editor (The University of Alabama, 1976), pp. 153-162.

" Social Measurement in the Accounting Curriculu.m -- Where and Why?" in Researchino the Accounting Curriculum: Strategics for Chanqe_, William I,.

Perrara, editor (Educaticn Series F:o. 2, American Accounting Association.

> 1975), pp. 203-217.

_ . . _ . _, -- . _ . ~ _ _ _ _

Ralph Estes Vite Page 5 Cther Articles (continued):

"A Comprehensive Social Accounting Model for Corporations and Other Entities," Proceedings of the Southwest Recional Meetano of the American Accounting Association (llou s t on , 1975), pp. 238-252.

"A Comprehensive Corporate Social Reporting Model," in Social Accounting by Lee J. Seidler and Lynn L. Seidler (Los Angeles: Melville Div. of John Wiley & Sons, 1975), pp. 185-204

" Social Accounting," Wichita State University Macasine.

Winter 1975, pp. 4-7.

" Advanced Principles of Auditing," in Accountino Trends VIII, Thomas J.

Burns, editor (New York: McGraw-!!ill, 1974), pp. 38-40.

"What's All This About Social Accounting -- or Can I Make It to Retircment Without Having to Learn?" Elmer Fox & Company '74, pp. 10-11.

" Education for the Mature Professional," Proceedings of the Sa cond International Conference on Accounting Education (London, 1970), pp.

27-33.

"The Decision Scientist: 1984," Proceedings of the First Annual Meeting of the American Institute for Decision Sciences (New Orleans, 1970),

pp. ~.81- 2 9 3 . With Lee Smith.

Book Reviews:

Trevor Cambling, Societal Accountino (Iondon: Coorge Allen t Unwin Ltd.,

1974); in The 1.ccountino Review, April 1976, pp. 457-458.

J. E. Smyth, The Accounting Model (Toronto: The Rycrson Press, 1970);

in The Accounting Review. October 1971, p. H30.

I!NITED PAPERS AND PROGRAM APPEARANCES f;ational/ International Meetings:

"An Experimental Study of the Dehavioral I mpeic t of the Audi tor's Standard Opinion," Annual Meeting of the American Institute for Decision Sciences.

New Orleans, November 1979.

" Fads, Foibles and the Future: Social Acenunting n the Twenty-First Century," Annual Conference of the Order of Chartered Accountants of Quebec, Pointe-au-Pic, June 1979.

"The Profession's Changing florizons: A Survcy of Practitioners on the Present and Future Importance of Sclected Knowledge and Skills," Annual Meeting of the Accrican Accounting Association,' Denver, August 1978.

kalph Estes vita Pagu 6 i

National / International Meetings (continu '

" Monetary Measures of Perform.ince," Annua. 'onference of Accountants for the Public Interest, Miami, November 1977

" Accounting in the 19enty-First Century: The Road to Gnomologica ."

Annual Meeting of the American Accounting A:::;ociation, Portland, Auqust 1977.

"The Now and Future Accountant's Need for Decision Sciences," Annual Meeting of the American Institute for Decision Sciences, San Francisco, November 1976.

Panel discussant, "How Can We Utilize Student Volunteers More Ef fectively?"

Annual Conference of Accountants for the Public Interest, San Francisco, November 1976.

"A Model for Measuring and Evaluating the Social Impact of Multinational i Corporations," XXIInd International Meeting o'f The Institute of Management Sciences, Kyoto, July 1975.

Session chair, "The Measurement of the social Impact of Multinational Corporations on Host Countrics," XX'_1: 3 International Mccting of The Institute of Management Sciences co, July 1975.

Session chair, " Social Accounting: Cases in Soc'ial Measurement," Annual Meeting of the American Institute for Decision Sciences, Atlanta, October 1974.

" Social and Environmental Accounting," Twenty-Third Annual Symposium of the Federal Government Accountants Association, Dallas, June 1974.

l l

" Social Accounting and Accounting Education," American Accounting Associa-tion Symposium on Accounting Education, Chicago, May 1974 "A Comprehensive Corporate Social Reporting Model," XXth International l Meeting of The Institute of Management Sciences. Tcl Aviv. June 1973.

" Application of Communication Theory to Accounting Instruction," Annual Meeting of the American Accounting Association, Lexington, August 1971.

" Accounting for Social Costs," Annual Meeting of the American Accounting l Association, University of Maryland, August 1970.

[ "The Decision Scientist: 1984," Annual Meeting of the American Institute

.for Decision Scicnces, New Orleans. October 1969. With Lee Smith.

l l " Education for the Mature Professional," Second. International Conference on Accounting Education, fondon, August 1967.

I,

Other Meetings:

"Public Interest Accounting Putting the 'P' in CPA," Wichita State University Chapter of hets Alpha Psi, October 1979.

• t t Ralph Estes Vits ' '

%~Ueqcfld3 Other Meetings (continued):

"the Present and Future Inportance of Selected Knowle !';c and Skills,"

Second Annual Kansas Society of CPA8 Accountinq Educatort, conference, Manhattan, March 1979.

"The value of Virtue: Can Corporate Morality bc Measured?" Univo rn ity of Notre Dame, 2nvited lecture sponsored by the Joint University Comnittee on Business Taeology and Philosophy, April 1973.

Discussant, "The Role of Fact and Interpretation in the Evolution of the Auditing Method," by Florence Snced, Annual Meeting of the Accrican Accounting Association Southwest Region, Callas, tsarch 1978 "The Corporate Social Accounting Model: An Information System for Evaluating the 'spact of Corporations on Crowth, Resource Use, and Specific Constitutent Groups within Society," Social Accounting Symposium sponsored by Arthur Andersen & Co. and the University of Kansas, Lawrence, May 1977.

Pancl Discussant, " Corporate Social Responsibility and Social Accounting,"

on Market Plaec, public television program produced for national cyndica-tion, Kansas City,luy 1977

" Social Accounting -- State of the Art and the Futurc outlook," Univers ity of Kentucky. Distinguished Sl eaker Scrics, October 197G.

" Total Performance Accounting: A New Tool for Evaluating Your Socia *.

Performance," Wichita State University Community Leaders' Lunch eon .

Wichita, September 197G.

" Social Accounting in the Curriculum: How Huch, hhcre , 'a*ny ? " Annual Meeting, Coordinating Council of Accounting Educators of Minnesota, winona, April 1976.

" Evaluation of a Corporate Social Reporting Model," The Arthur Young Prof essors' Roundtable, University of Illinois, Urbana, turch 1976.

" Social and Environmental Accounting," Robert Morris Associates, St. Louis Chapter, ' February 197G.

"The Inef ficient Markets Theorem, cr Why Therc Will Always be a Need for Social Accounting," University of Alabama' Accounting Ecscarch convocation, November 1976. Also served as a member of the convocation faculty.

" Social Accounting," AICPA's Faculty Summer Seminar for Representatives of Accounting Departments in the Traditionally niack Colleges and Universitics, Florida A & M University, Tallahassee, June 1975.

" Measuring the Unneasurable: Social Accounting for. Social Fesponsibility,"

Cmporia Kansas State University Annual Accounting Club Danquet, Emporia, April 1975.

Ralph Estes Vita Page H Other Meetings (continued) :

" Integrating Economic and Social Ef fects in a Cocprehensive Corporate Reporting Model," American Accounting Association Southwest Regional Meeting, Houston, March 1975.

"A Proposed Corporate Social Reporting Model," The University of !!innesota, invited lecture for faculty, Ph.D. candidates, and area business executives, Minneapolis, Februa ry 1975.

"A Corporate Social Reporting Model," The University of California, invited lecture for f aculty and Ph.D. candidates, burkelcy, November 1974

" Social Accounting: Progress and Prospects," U. S. Civil Service Commission Seminar for Financial Executives, Dallas, October 1974

" Social Accounting," Annual Meeting of die Kansas Society of Certified Public Accoun tan ts, Dodge City, September 1974

" Social Accounting and the CPA," Wichita Chapter of Kansas Society of CPAs, Wichita, January 1974. .

" Innovation in Accounting Instruction," State Convention of Community Colleges in Kansas, Wichita, January 1974.

" Corporate Social Accounting," Wichita State University Accounting Club, Wichita, January 1974

" Corporate Socici Accounting," Annual Professional Banquet of the University of Hcuston Chapter of Beta Alpha Psi October 1973.

" Accounting in the Executive Suite," Golden Triangle Chapter of the !!ational Secretaries Association, Arlington, August 1973. ,

" Social Accounting," three-day seminar for Arthur Anderson & Co. partners, Chicago, May 1973. Directed by R. I,cc D r ur.me t .

" Quantitative Systems for Social Performance Evaluation," Seminar on Mcasurement of Corporate Social Performance ::la)nsored by the California CPA Foundation for Education and Roscarch and the University of Southern California, Montercy, April 1973.

"The Future of Accounting Education," Seminar on Accounting Education, jointly sponsored by Amcrican Institute of Certified Public Accountants, American Accounting Association, and North Texas State University, De nton ,

November 1972. I

" Mathematical Communication TScory and Accounting," Annual Meeting of the American Accounting Association Southeast Region, Haton Rouge, May 1972.

"Public Interest Accounting," Texas Christian University Chapter of Beta Alpha Psi, Fort Worth, December 1971.

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U Ralph Estes Vita Page 9 Other Meetings (continued):

"Information Theory," Dallas Chapter of the Institute of Internal Auditors, Dallas, October 1971.

" Arc Accountants Helevant?" Annual Muut iny of the Port. Wo rth Chapter, Te x.an Society of CPAs, Fort Worth, January 1971.

Discussant. " Feasibility of Obtaining Current Cost Data: A Case Study,"

Annual 1:ceting of the American Accounting Association Southwest Region, Dallas, March 1970.

" Business and Social Change," Southwestern Bell Telephone Con;,any College Faculty Conf erence, Arlington, November 1968.

" International Financial Reporting," Annual Meeting of the American Accounting Association Southwest Region, Dallas, March 1967.

OntER RISCARCH CO.*4 PLETED "A Discriminant Analysis of Carccr Choice Decinions Among Accountants,

+ Attorneys Engineers, and Physicians," research report submitted to The Accounting Review.

"An Investigation of Intergenerational Socioeconomic Status change Among Four Professions," research report submitted to The Accounting Review.

A series of controlled experiments, extending over a five-year period, to investigate the effects of dif ferent audit opinion forms on stoch-holders, financial analysts, institutional investors, and business persons in general: will be prepared for publication as a research monograph.

" Accounting Problems of the Multinational Enterprise," for the American Accounting Association's International Accounting Committcc, 1971-1972.

" Resources for Research in International Accounting," for the American Accounting Association's Connittee on International Aspects of Accounting Teaching and Rescarch, 1968-1970.

" International Accounting and the AAA Basic Standards," for die American Accounting Association's Research Ccmmittee on International Accounting, 1966-1967; results published in The Accounting Review, Supplement to Vol.

XLVIII (1968), pp. J-14.

International Accountino: With Part icular Reference to Application of Price-Level Adjus tment and Future Se rvice Valuation Concepts (Doctor of Business Administration dissertation, Indiana University, May 1967).

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• _m l<alpn Estes Vita Page 10

!!ONORS AND AWARDS Ilonored by student and alumni groups (Omicron Delta Kappa, Mortar Doard, and Student-Alumni Arsociation) for " Leadership in Service to Wichita State University," February 1978.

Listed in outstanding Educators in America, 1970 and 1974-1975.

Listed in American Men and women of Science.

Beta Alpha Psi, accounting professional and honerary organization."

Beta Gamma Sigma, business honorary.

Phi Alpha Theta, history honorary.

Carhart Fellow, 1962, 1963, and 1964 UNIVCRSITY SCRVICE Chair, University Committee on Credit for Exterience Modcrator and member of Planning Committec, WSU Annual Accounting / Auditing Conference Faculty advisor to several student organizations, including Dcta Alpha Psi Elected member, University Graduate Assembly University . Curriculum Committec University Computer Board University Coals Committee University llumanitics Com:nittee University Human Rescarch Review Committee University DELTA Project Advisory Committcc College Graduate Studics Committec College Doctoral Program Committee .

College Tenure and Frcriotion Committec College Research Committcc College Retrenchment Committec College Panagement Science Committee College lioners Committee Chair, College Computer Requirements Connittee College Dean Evaluation Committec College MBA Accreditation Committec College Dean Search Committec

< Chair, Department Chairperson Scarch Committcc Developed following new courses:

Management Accounting for Public Administration (graduate)

Advanced Public Accounting Practice (graduate)

Informa tion Systems Analysis (graduate)

Business and Society (gradustc)

Accounting Research Seminar (g radua te)

International Accounting and rinancial Analysis (graduate)

Cicetronic tota Processing ( undcr g radua te)

Electronic business Systems (undergraduate)

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[ g g; h Vita Pige 11

• Ralph Estes l

CON'. UNITY SERVICE Community service has included service as of ficer or board member of i I

numerous coc.munity and public interest organizations; volunteer co nsulting to Federal Election Commission. Environmental Protection Agency, State Senate of Kansas, and numerous other government agencies, minority-owned businesses, public int erest groups, and anti-poverty organizations; over one hundred addresses to corwunity, ed uca tiona l, and religious organizations: and service as finance chairperson for a Kansas gubernatorial candidate.

C7Pi!ER INFOR.'tATION Date of birth: Aujust 13, l'J35.

Married to Sue Ellen liorn: no children.

Personal and professional goals include continrad efforts to advance knowledge through personal scholarly activitics and by stimulating other scholars including Ph.D. candidates and your.eler professors; and efforts to serve the public interest through the application of accounting and economic skills and knowledge.

, D 0 UNITED STATES OF AMERICA O NUCLEAR REGULATORY COMMISSION 6 oocx.g g ATOMIC SAFETY AND LICENSING BOARD Eg 4 7

t lI98h L2 Charles Bechhoefer, Chairman 1.

Dr. Frank F. Hooper, Member d' l Glenn O. Bright, Member o> \

Cn l

In the Matter of  :

l CINCINNATI GAS AND ELECTRIC h l COMPANY, ET AL,  : DOCKET NO. 50-358 l (William H. Zimmer Nuclear  : APPLICATION FOR f Power Station)  : OPERATING LICENSE.

i l

I

~~_ ' ...  :: '._

CERTIFICATE OF SERVICE I hereby certify that copies of  % n;e %Hmny of Raich Estes Recardino Contention 13, Applicants' Firancial Qualifications in the above-captioned proceed-ing have been served on the following persons by posting the same in the U.S. Mails, postage prepaid, this la day of February 1981 ,

l Charles Bechhoefer, Esq., Chairman Mr. Glenn O. Bright l Atomic Safety and Licensing Board Atomic Safety and Licensing Board Panel Panel U.S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Washington, D.C. 20555

• • m n k,-P- "2cger Troy B. Conner, Esq.

30d501 vZaNeturni "t Surces Conner, Moore & Corber

-tffil5 n s 4' CA W %W 1747 Pennsylvania Avenue, N.W.

Mn--Ar-cor--*42 h-igWic9- Washington, D.C. 20006 4C!.11;i- L "r-erriEEsq. John D. Woliver, Esq.

Gener:-L." Msel P.O. Box 47 C:71dfii$nt2 24as=s :Slectx4*c-4 o. 550 Kilgore Street P:~fLMcx-39 Batavia, Ohio 45103 w g_n p i+ 6 - " ; 2 G-1 Chairman W. Peter Heile, Esq. Atomic Safety and Licensing Appeal Assistant City Solicitor Board Room 214, City Hall U.S. Nuclear Regulatory Commission Cincinnati, Ohio 45220 Washington, D.C. 20555

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Chairman n r 9

0 D jb ki

,' Charles A. Bnrth, Esq. Atomic Safejy&hn\ i ensing Board U.S. Nuclear Rsgulatory Commission Room MNBB 9604 Panel 7735 Old Georgetown Road U.S. Nuclear Regulatory Commissior Bethesda, Maryland 20014 Washington, D.C. 20555 Chase Stephens Mary Reder Docketing and Service Section Box 270 Office of the Secretary Route 2 U.S. Nuclear Regulatory Commission California, Kentucky 41007 Washington, D.C. 20555 David K. Martin, Esq.

Richard S. Salzman, Esq.

Assistant Attorney General Chairman Division of Enviromental Law Atomic Safety 1 Licensing Appeal Attorney General ~for the Commonwe.

Board of Kentucky U.S. Nuclear Regulatory Commission 209 St. Clair Street Washington, D.C. 20555 Frankfort, Kentucky 40601 Lawrence Quarles Andrew B. Dennison Atomic Safety & Licensing Appeal 200 Main Street Board Batavia, O.hio 45103 U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Michael C. Farrar, Esq.

Atomic Safety & Licensing Appeal Robert Jones Board Prosecuting Attorney U.S. Nuclear Regulatory Commission Clermont County

- Washington, D.C. '20555 154 Main Street Batavia, Ohio 45103 Dr. Frank Hooper Apartnent 204 105 Inn Iane Oak Ridge, 'IN 37836  !

l I further certify that I have served a copy of the foregoing on Mr. William l J. Maran, CG&E, by personally delivering it to his office this 13 day of .

February, 1981. l r ,2, r "V;W/

James H. Feldman, Jr.

rney for MVPP g

6 East Ninth Street innati, OH 45202 (513) 621-6151 1

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