ML20023D837

Forwards Audit of Jul 1982 Cost Estimate for Marble Hill Nuclear Project, in Support of Util Petition to Increase Existing Rates & Changes for Retail Electric Svc & for Approval of New Rate Schedules,Rules & Regulations

ML20023D837
Person / Time
Site:	Marble Hill
Issue date:	05/31/1983
From:	Shields S PSI ENERGY, INC. A/K/A PUBLIC SERVICE CO. OF INDIANA
To:	Harold Denton Office of Nuclear Reactor Regulation
Shared Package
ML20023D838	List: ML20023D837
References
NUDOCS 8306060039
Download: ML20023D837 (2)

Text

PUBLIC SERVICE INDIANA S. W. Shields senior Vice President -

Nuclear Division May 31, 1983 Mr. H. R. Denton Docket Nos.: STN 50-546 Office of Nuclear Reactor Regulation STN 50-547 U.S. Nuclear Regulatory Commission Construction Permit Nos.:

Washington, D.C. 20555 CPPR-170 CPPR-171 Marble Hill Nuclear Generating Station - Units 1 and 2

Dear Mr. Denton:

On March 26, 1982, Public Service Company of Indiana, Inc. (PSI) filed a petition with the Public Service Commission of Indiana (PSCI) to increase its existing rates and charges for retail electric service and for approval of new schedules of rates, rules and regulations. As part of its consideration of this petition, the PSCI retained National Economic Research Associates (NERA) to exami.ne PSI's construction program as "it may relate to the matter at issue in this proceeding."

Subsequently, NERA made an economic study of PSI's constrection program including the Marble Hill Nuclear Project which is jointly owned by PSI and Wabash Valley Power Association, Inc. (WVPA). NERA recommended to the PSCI that an independent audit be done of the Marble Hill cost estimate.

This audit would specifically examine:

"1) whether current forecasts of materials required to complete the project are adequate;

2) whether current estimates of labor productivity on individual tasks are consistent with experience at the site and at other nuclear sites; and

3) whether the current estimate includes significant allowance for unresolved regulatory issues."

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PDR ADOCK 05000546 A PDR  !

P. O. Box 190, New Washington, Indiana 47162 812. 289.3000

PUBUC

- SERVICE INDIANA Mr. H. R. Denton Page 2 20, 1983 The PSCI agreed retained and subsequently with this O'Brien-Kreitzberg recommendation in& its Order of January Associates, Inc. (0KA) of Cherry Hill,-New Jersey on February 23, 1983 to perform this audit. OKA spent several weeks at the Marble Hill site from February 23 to March.30, 1983'and issued its findings to the PSCI on May 23, 1983.

A prehearing conference and preliminary hearing is scheduled with the PSCI on June 3 to consider issues raised by the report and issues left unresolved by the PSCI's January 20 Order.

At the request of your Mr. P.W. O'Connor and in accordance with PSI's and WVPA's desire to keep the Nuclear Regulatory Conunission (NRC) and its staff informed of significant developments at Marble Hill, PSI, on behalf of itself and as agent for WVPA, wishes to provide the attached copy of the Marble Hill audit to the NRC's staff. If you have any questions about this study, please

, call.

Sincerely, j L S. W. Shields SWS/ MEN /ljl Attachment cc: J. R. Schapker (w/o attachment)

D. G. Eisenhut (w/o attachment)

T. M. Novak (w/o' attachment)

B. J. Youngblood (w/o attachment)

P. W. O'Connor (w/o attachment) l

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