ML20032D947
| ML20032D947 | |
| Person / Time | |
|---|---|
| Site: | Black Fox, Yellow Creek |
| Issue date: | 11/13/1981 |
| From: | Gallo J ISHAM, LINCOLN & BEALE, PUBLIC SERVICE CO. OF OKLAHOMA |
| To: | Purdom P, Shon F, Wolfe S Atomic Safety and Licensing Board Panel |
| Shared Package | |
| ML20032D948 | List: |
| References | |
| NUDOCS 8111180533 | |
| Download: ML20032D947 (4) | |
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DOLMETED 15FI M, LI ACOLN & BEALE SIMC COUNSELORS AT LAs/
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Novenber 13, 1981 emcAeo,,wuoi.'oo.o2 enLiiNG & SERVICE
.o RRANCH retcawouc 3ia-ase-7soo tcLex:a saea Sheldon J. Wolfe, Esquire Mr. Frederick J.
Shon Administrative Judge Administrative Judge Atomic Safety and Licensing Atomic Safety and Licensing Board Panel Board Panel U. S. Nuclear Regulatory U.
S. Nuclear Regulatory Commission Commission Washington, D. C.
20555 Washington, D. C. y S;5g.,1j Dr. Paul W. Purdom
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Re:
In the Matter of Black Fox Station, Units 1 and 2, q
Docket Nos. STN 50-556 and STN 50-557 Gentlemen:
Consistent with the full-disclosure policies of Public Service Company of Oklahoma ("PSO"), I am enclosing copies of certain documents from PSO's pending rate case.
This case is styled as the " Application of Public Service Corporation of Oklahoma, an Oklahoma corporation, For an Adjustment in its Rates and Charges for Electrical Service in the State of Oklahoma," Cause No. 27068.
This application is pending before the Corporation Commission of Oklahoma.
The record is closed, and a decision is expected from the Commission by early January 1982.
The enclosures include two Orders of the Corporation Commission granting interim rate relief, and the direct testimony of Messrs. Brown and Stratton.
The testimony "pN s
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s Sheldon J. Wolfe, Esquire Mr. Frederick J.
Shon Dr. Paul W.
Purdom November 13, 1981 Page Two provides updated scheduling and cost information with respect to the Black Fox Station.
I am also enclosing a letter from Mr. W.
R.
Stratton, Senior Vice President, Finance, of PSO, that among other things explains the status of the project's reconsideration by PSO and the other owners, Associated Electric Cooperative, Inc., and Western Farmers Electric Cooperative.
Mr. Stratton's letter is self-explana-tory, and I will not attempt to characterize it further.
. Sincerely,
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ghosephGallo Counsel for Public Service Company of Oklahoma
Enclosures:
As Indicated I
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PUBLIC SERVICE COMPANQg)KlAHOMA 4
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'81 NOV 16 P3:24 W. R. STR ATTo N Senior Vice Frosident. Finance e SECRETARY ni ijNG & SERVICE November 12, 1981 zRANCH Joseph Gallo, Esq.
Isham, Lincoln & Beale 1120 Connecticut Avenue, NW Suite 325 Washington, D.C.
20036
Dear Mr. Gallo:
I am enclosing a copy of my testimony which was presented to the Oklahoma Corporation Commission (OCC) on November 9 and 10 in Public Service Company of Oklahoma's (PS0) pending rate case, Cause 27068.
The purpose of my testimony was to respond to the OCC's order directing PSO to present evidence concerning the financial impact of PSO's participation in the Black Fox Station as well as the comparable impact of conversion of the project to a coal fired facility should that course be selected.
My testimony uses cost and schedule data developed by Management Analysis Company (MAC) which was also presented in separate testimony in the rate case. A copy of this testimony is also enclosed. MAC's analysis shows a "most likely" schedule of commercial operation of Unit 1 in February,1993, and Unit 2 in September, 1995.
MAC also developed a construction management schedule which provides more strict scheduling milestones and results in projected commercial operating dates of September, 1991 and September, 1994.
This scheduling concept is consistent with the manner in which PSO is managing the project, and the 1991/1994 in-service dates are reflected in Amendment N.
17 to the Black Fox PS AR.
MAC has estimated, using 1993/1995 in-service dates, a total cost for the Black Fox project of $4.81 billion, excluding any allowance for construction finance charges. Based on PS0's 60.87% share of the project, the total construction cost to the company is estimated to be $3.2 billion assuming a full allowance of construction work in progress in the rate base from the Oklahoma Corporation Commission.
The PS0 cost is $6.3 billion if the OCC only allows a return on investment through an allowance for funds used during construction.
MAC was retained to provide updated project cost data and scheduling information for the co-owners of the Black Fox Station.
The cost estimates discussed above were developed by PS0 in support of its application for a rate increase before the OCC.
The other owners, Associated Electric Cooperative, Inc. and Western Farmers Electric Cooperative, have not yet completed their evaluation of the MAC data, nor have they estimated the financing cost associated with their cash portion of the project.
CENTRAL AND SOUTH WEST SYSTEM hNe*M(( wha gnc Power gst Tegsytet;es N[$Icndifr*"as bspcWa$da U C8"Y U' d
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I As my testimony indicates the co-owners are performing detailed financial analyses of the Black Fox project as presently conceived as well as a number of alternative actions, such as conversion of the project to coal. This re-evaluation should be completed in the first quarter of 1982.
For PSO the OCC's opinion in the pending rate case is of prime importance to the decisionmaking process. A decision from the OCC is expected in early January, 1982, and I expect the co-owners' re-evaluation of the project to be completed within a reasonable time thereafter. Hence, a firm decision as to the future of the project should be made well in advance of the NRC hearings which I understand you estimate will be held in the summer of 1982.
Please provide this information, as appropriate, to the NRC and the participants in the licensing proceeding. Feel free to call me if you have any questions.
o Sincerely yours, l
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W. R. Stratton Senior Vice President, Finance WRS:pir Enclosure