ML20038A442

Engineering Evaluation Rept,Statement Supplementing Engineering Evaluation Rept of Sept 1974

ML20038A442
Person / Time
Site:	Indian Point
Issue date:	05/01/1975
From:	STONE & WEBSTER, INC.
To:
References
NUDOCS 8110310614
Download: ML20038A442 (3)

Text

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l REGIJLATORY E00KETFRE COPY I

ENGINEERING EVALUATION REPORT ON INDIAN POINT l

NUCLEAR GENERATING UNIT NO. 3 I

FOR I

POWER AUTHORITY OF THE STATE OF NEW YORK I

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STATEMENT SUPPLEMENTING ENGINEERING EVALUATION REPORT OF SEPTEMBER 1974 i

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S AN F R A NC:5C O ENGihatmlNG Mr. George T. Berry May 1, 1975 General Manager and Chief Engineer Power Authority of the State of New York 10 Columbus Circle New York, New York 10019

Dear Mr. Berry:

STATEMENT SUPPLEMENTING ENGINEERING EVALUATION REPORT INDIAN POINT NUCLEAR GENERATING UNIT NO. 3 POWER AUTHORITY OF THE STATE OF NEW YORK At your request we have examined our Engineering Evaluation Report on Indian Point Nuclear Generating Unit No. 3 submitted September 10, 1974 and supplement it with the following additional comments:

We have continued to monitor the construction on a daily basis, and in our judgment, this Unit will operate successfully and as intended.

Construction of the basic plant is essentially complete and issuance I

of a limited operating license by the Director of Nuclear Reactor Regulation (of the Nuclear Regulatory Commission) has been authorized pursuant to an Order of the Atomic Safety and Licensing Board dated April 18, 1975 upon the making of a determination by the Director that Unit No. 3 has been completed in accordance with the application and regulations of the Commission.

We call your attention to the fact that in the Summary and Conclusions I

portion of the September 1974 Summary Report we projected a commercial operation date of December 1975 on the assumption that fuel loading would be completed by mid-1975.

It is our opinion that those dafes can be met.

The total cost of the Project as shown in the September 1974 Report was developed using the premises stated in that Report. Among these was that the average cost of interest during construction would be 6 percent for the period subsequent to transfer of ownership to the Authority on March 15, 1975.

You have now asked us to assume an average rate of 7 percent in this Supplement and that transfer of ownership will occur oa July 1, 1975. Other revised premises are that $15,000,000 required for. an expanded radwaste facility and

$41,000,000 for bond reserve should be included in the Total Capital Requirements.

In the interim since our initial report, additional information has become availabic which makes it desirable to reclassify the costs into categories somewhat different from those in the original report without substantially affecting the total cost.

Mr. George T. Berry May 1, 1975 The following tabulation provides an updated Capital Requirements Summary:

CAPITAL REQUIREMENTS SUME\\RY INDIAN FOINT No. 3 Summary of recorded costs through December 31, 19 7 4........... ( 1)

$330,000,000 Estimated Costs of remaining contrac t work (Westinghouse)..... (1) 23,698,000 Other Estimated Costs, inc lud ing G & A, e t c................... (1) 25,568,000 (from December 31, 1974 ;o Completion)

Allowance for funds used during construction..................

15,000,000 (from December 31, 1974 to July 1, 1975)

Allowance for revenues during cons truction.................... (2)

( 3,000,000 )

I PAS NY a dmin is t ra t ive cos t s.................................... (2 )

1,225,000 Allowance for future environmental s tudies.................... (2) 6,000,000 Spare Parts allowance and working capital..................... (2) 7,000,000 Insurance (from July 1, 1975 through June 30, 1976)...........(2) 2,132,000 Additional facilities requi red for independent operation......

38,700,000 Other consultants charges.....................................(2) 2,875,000 Nuc1 car fuel costs (includes initial core plus one reload)....(2) 68,000,000 Contingencies, including c1 aims...............................

8,752,000 Total estimated capital costs before interest during

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ranstruction, financing cost and bond reserve E

requirements...........................................

$525,950,000 Net interest during construction (from July 1, 1975 to I

D e c emb e r 19 7 5 )............................................... ( 2 )

12,350,000 Financing.....................................................(2) 11,700,000 Bond r es erve requir emen t...................................... (2) 41,000,000 To ta l Capita l Requirement s.............................. (3)

$591,000,000 (1) Subject to further evaluation by the Authc ity.

(2) Calculated by the Authority.

(3) The Total Capital Requirements do not include the costs for a cooling tower which, if require',

would amount to about $70,000,000 nor the cost of several plant modifications to improve the operating convenience and plant availability which in the aggregate, if implemented, may cost about $ 10,000,000.

I Based on these Total Capital Requirements and allowing for operating and maintenance and fuel costs and assuming a conservative Unit capacity factor of 65 percent, the cost per kilowatt hour will increase from 13.8 mills (as shown in our " Statement Supplementing Engineering Evaluation Report -

I Astoria Generating Station Unit No. 6 Power Authority of the State of New York" dated January 30, 1975) to 15.0 mills. The Astoria Unit No. 6 cost

I Mr. George T. Berry May 1, 1975 of generation is now calculated to be 32.6 mills per kilowatt hour.

Thus, the combined cost of power from Indian Point Unit No. 3 and Astoria Unit No. 6 will average about 23.3 mills per kilowatt hour.

If a cooling tower is required, the annual fixed charges will increase and the generating capability of the Unit will be reduced by 1.3 percent, thus increasing the cost of power generation at Indian Point Unit No. 3 by approximately 2 mills.

These increases, in our opinion, do not affect the marketability of power.

Very truly yours, W. F. Allen, Jr.

President I

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