ML20024E335

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Forwards Applicant Press Release Re Mgt Decision to Complete Both Units Despite Dow Chemical Co Attempted Withdrawal from Contract to Buy Steam from Plant
ML20024E335
Person / Time
Site: Midland
Issue date: 08/05/1983
From: Brunner J
CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
To: Bechhoefer C
Atomic Safety and Licensing Board Panel
References
ISSUANCES-OL, ISSUANCES-OM, NUDOCS 8308100259
Download: ML20024E335 (4)


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Mr. Charles Bechhoefer, Esq.

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f f Atomic Safety & Licensing Board Panel U.S. Nuclear Regulatory Commission Washington, DC 20555

Dear Chairman Bechhoefer:

Attached is a copy of a press release by Consumers addressing the point discussed at the end of the last hearing session.

According to Mr. Selby's statement, both units of the Midland facility will be continued.

The press release also indicates that the first unit to be completed at Midland will be constructed in "very much the same time frame as previously planned."

Very truly yours,

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General Offices: 212 West Michigan Avenue sacuson. uicnigan 40201 <si73 7ss oa33 RECEIVED AUC 5 1953 FOR IMMEDIATE RELEASE C. P. Co.. Legal JACKSON, Mich., Aug. 3,1983 -- At its regular August meeting today, Consumers Power Company's board of directors endorsed the decision of management to complete both units of the Midland nuclear plant despite Dow Chemical Company's attempted withdrawal from its contract to buy steam from the plant. After reviewing the situation, the board concluded that the need for electricity in the company's service area requires completion of both units and that the company should continue with construction.

In its quarterly earnings release last week, the company indicated that industrial electric sales for June 1983 were almost 11 percent higher than those for June 1982. In addition, on July 15,;the demand for electricity on the company's system reached 4,757 megawatts -- only 3 megawatts below the company's projected summer peak for 1986. Later in July, the company surpassed its all-time main system high for one week's electric sendout.

In confirming that work will continue on both Midland units, John D. Selby, chairman, president, and chief executive officer of the company, said that the first un'it (the all-electric unit) will be finished as close as possible to the presently scheduled February 1985 commercial operation date.

Construction work will continue on the second unit but the schedule will be revised.

Selby said that the final construction schedule of the second unit will be based on several considerations. Among them are final cost, need for power, company cash flow, and work necessary so that operation of the first

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unit is not hampered by construction activities on the second. The secon,d unit has always been a combination unit to provide both process steam and electricity. It can be converted to an all-electric unit by the addition of ano,ther turbine generating unit.

The company announced on April 12 that the first unit would become operational in February 1985 and the second unit in August 1985. The total cost of the project at that time was estimated at $4.430 billion.

Selby said that new cost figures have not been developed but he does not anticipate a significant change in the cost of the first unit since it will be constructed in very much the same time frame as previously. planned.

"The ultimate goal of Consumers Power Company," he said, "is to provide a reliable electric supply to the company's service area at a reasonable price.

Completion of both units should assure such capability well into the 1990's."

August 3, 1983

SERVICE LIST Mr. Frank J. Kelley, Esq.

Mr. Steve Gadler Attorney General of the 2120 Carter Avenue State of Michigan St. Paul, MN 55108 Ms. Carole Steinberg, Esq.

Assistant Attorney General Atomic Safety & Licensing Environmental Protection Div.

Appeal Board 720 Law Building U.S.' Nuclear Regulatory Comm.

Lansing, MI 48913 Washington, DC 20555 l'

Mr. Myron M. Cherry, Esq.

Mr. Scott W. Stucky, Chief

. Docketing.& Services Cherry & Flynn 3 First National Plaza U.S. Nuclear Regulatory Comm.

Suite 3700

- Office of the Secretary.

Chicago, IL 60602 Washington, DC 20555 Mr. Wendell H. Marshall Ms. Mary Sinclair 4625 S. Saginaw Road-

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- 5711t Summerset Street -.

Midland, MI 48640 Midland, MI 48640 Mr. Charles Bechhoefer, Esq.

Mr. William D. Paton, Esq.

Atemic Safety'& Licensing --

Counsel for the NRC Staff Board Panel U.S. Nuclear Regilatory Comm.

U.S.' Nuclear Regulatory Comm.

Washingt'on, DC 20555 Washington, DC 20555 Dr. Frederick P. Cowan Atomic Safety & Licensing 6152 N. Verde Trail Board Panel Apt. B-125 U.S. Nuclear Regulatory Comm.

Boca Raton, FL 33433 Washington, DC 20555 Mr. Michael Miller, Esq.

Mr. Jerry Harbour Isham, Lincoln & Beale Atomic Safety & Licensing 3 First National Plaza Board Panel Suite 5200 U.S. Nuclear Regulatory Comm.

Chicago, IL 60602 Washington, DC 20555 Mr. D. F. Judd Mr. Fred Williams Senior Project Manager, Isham, Lincoln & Beale The Babcock & Wilcox Company 1120 Connecticut Ave., N.W.

P.O. Box 1260 Washington, DC 20036 Lynchburg, VA 24505 Ms. Barbara Stamiris Ms. Lynne Bernabei 5795 North River Road Government Accountability Route 3 Project of the Institute Freeland, MI 48623 for Policy Studies 1901 Q Street, N.W.

Mr. John Demeester, Esq.

Washington, DC 20009 Dow Chemical Building Michigan Division Midland, MI 48640

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