ML20024C383

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Commits to Submittal of Decommissioning Plan.Updated 1983 Economic Analysis Reveals Returning Plant to Operation Would Not Be Cost Beneficial.Final Safety Goals & Implementation Policy Will Not Be Available for 2 Yrs
ML20024C383
Person / Time
Site: Humboldt Bay
Issue date: 07/07/1983
From: Crane P
PACIFIC GAS & ELECTRIC CO.
To: Lazo R, Linenberger G, Schink D
Atomic Safety and Licensing Board Panel
References
NUDOCS 8307120573
Download: ML20024C383 (2)


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PACIFIC OAS AND E LE C T RIC C O M PANY (415) 781 4211 LAW DEPARTMENT - 77 B E ALE STREET, 31ST FLOOR. SAN FR ANCISCO CALIFORNI A 94106

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Judge Robert M. Lazo, Esq., Chairman Atomic Safety and Licensing Board US Nuclear Regulatory Commission Washington DC 20555 Judge David R. Schink Atomic Safety and Licensing Board Department of Oceanography Texas A&M University College Station TX 77840 Judge Gustave A. Linenberger Atomic Safety and Licensing Board US Nuclear Regulatory Commission Washington DC 20555 Re:

Docket No. 50-133, OL-DPR-7 Humboldt Bay Power Plant, Unit No. 3 Gentlemen:

In its Memorandum and Order (" Order") dated February 16, 1982, the Board directed PGandE to file a detailed status report with the Board starting April 1, 1982, and each three months thereafter, until final resolution of the future operation of Humboldt Bay Power Plant, Unit No. 3.

In accordance with Item 1 of the Order, PGandE--in its fifth status report, dated March 31, 1983--restated its conmitment to complete studies to support a decision regarding the future disposition of the Humboldt Bay Power Plant, Unit No. 3, within six months of the issuance by the NRC of their Final Reactor Safety Policy Statement and its Implementation Plan.

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Atomic Safety and Licensing Board July 7, 1983 Page 2 PGandE now wishes to notify the Board of its decision to no longer await the issuance of the NRC's Final Reactor Safety Policy Statement and Implementation Plan but to now commit to the submittal to the Commission of our plan to decommission the 1

Unit.

PGandE's decision to decommission Humboldt Bay Unit 3 comes y

about primarily as a result of two factors.

First, the NRC published on March 14, 1983, its Safety Goal Development Program.

It is clear from the program that the availability of final safety goals and implementation policy is a minimum of two more years in the future.

Second, when it became evident that the Commission's Final Safety Goal Policy and Implementation Plan would not be available for some time, PGandE updated its 1980 analysis of the costs and economics of returning the Unit to operation.

The 1980 economic analysis was provided to the Board with PGandE's " Motion to Withdraw Application for License Amendment" dated December 31, 1980.

The 1980 Economic Analysis had indicated that it would be economic to return the Unit to service for most levels of eventual backfit costs.

The updated 1983 Economic Analysis, however, reveals that returning the Unit to service for the remaining term of its operating license would not be economic.

The negative shift in the economics of restarting the Unit is a result of a reduction in the projected cost of oil with an associated lowering in the cost of power that will be available to PGandE from other sources.

Shortly, PGancE will file appropriate papers terminating the licensing proceeding and setting forth our proposed decommissioning plan.

Very truly yours, ROBERT OHLBACH PHILIP A. CRANE, JR.

RICHARD F. LOCKE Attorneys for PACIFIC GAS AND ELECTRIC COMPANY By PHILIP A. CRANE, JR.

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