ML20039D061
| ML20039D061 | |
| Person / Time | |
|---|---|
| Site: | Hope Creek  |
| Issue date: | 12/29/1981 |
| From: | Martin T Public Service Enterprise Group |
| To: | Harold Denton Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8112310271 | |
| Download: ML20039D061 (5) | |
Text
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J O PSlEG Public Service Electric and Gas Company 80 Park Plaza Newark, N.J. 07101 Phone 201/430-7000 December 29, 1981 91 pf 9/
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Director of Nuclear Reactor Regulation flECElygg a
U.S.
Nuclear Regulatory Commission O
T 7920 Norfolk Avenue DEC3 01981r. c Bethesda, Maryland 20014 tu 6-
Dear Mr. Denton:
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HOPE CREEK GENERATING STATION NO. 2 UNIT DOCKET NO.
50-355 CPPR-121 WITHDRAWAL OF APPLICATION On November 4, 1974, construction permit number CPPR-121 was issued to Public Service Electric and Gas Company and Atlantic City Electric Company for Hope Creek Unit 2.
On December 23, 1981, the Board of Directors of Public Service resolved to abandon the construction of this unit.
A copy of this resolution is attached for your information.
Pursuant to the provisions of this resolution, Public Service Electric and Gas Company, on its own behalf and on behalf of Atlantic City Electric Company, hereby withdraws its application for licenses for Hope Creek Unit 2.
Respectfully submitted, PUBLIC SERVICE ELECTRIC AN GAS COMPANY T.
J. Martin Vice President -
Engineering and Construction Sworn to and subscribed
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before me this 01 day
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of Decerber, 1981.
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PUBLIC SERVICE ELECTRIC AND GAS COMPANY
-BOARD OF DIRECTORS December 23,1981 WHEREAS, two 1,067 megawatt nuclear fueled electric generating units (Hope Creek Unit I and Hcpe Creek Unit 2) presently scheduled for commercial operation in 1986 and 1989, respectively, are under construction in Lower Alloways Creek Township, New Jersey, pursuant to construction permits issued by the United States Nuclear Regulatory Commission, and this Company has a general contract -
effective January 9,1974 with Bechtel Power Corporation (Bechtel) for such purpose, and this Company and Bechtel, as agent for this Company, have entered into various other contracts associated with Hope Creek Units 1 and 2; and WHEREAS, this Company has an agreement dated April 28,1977 with Atlantic City Electric Company (ACE), proQdinj for the participation of ACE in
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g the costs and output of Hope Creektnits I and 2 on the basis of an undivided 4~'
interest of 95% for this Company,and 5% for ACE, and undepaid ag,reement witti-ACE this Company has the responsibility anU authority for;ths units', design,and 7 '"
construction and the determination of the timing and natureof all obligations in.,[/
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F connection therewith; and
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WHEREAS, the two units were conc'e'ived and designed togetherko as to tali d,
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s advantage of economies of sc5e at a time when this' Company's electric pla) s/
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demand was growing at an ann 6al rate about 74%, as compared with thb curreny, t,
projected annual rate of peak load growti, of approximately 1.3%, afi3 it is
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now apparent that the capacity from Hope Creek Unit 2 is not needed to meet load
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by 1990, and anticipated fuel savings from operation of Hope Creek Unit 2
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beginning in 19S9 would require the expenditure of large amounts of capital l
beginning11n 1984; and WHEREAS, this Company has invested approximately $1.5 billion, including
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$265 rCillion of allowance for funds used during construction (AFDC), in Hope Creek Utiits I and 2, of which approximately $335 million, including $50 million of AFDC, is allocable to Hope Creek Unit 2; and WHEREAS,if Hope Creek Unit 2 should be abandoned, this Company would expect to transfer a portion of the costs allocable to Hope Creek Unit 2 to Hope Creek Unit I as necessary therefor and to recover the balance of such costs, plus net cancellation and close out costs and nuclear f uel costs, all amounting to approximately $172 million af ter the Federal income tax effect, over a period of approximately 17 or 15 years through this Company's rates commencing July 1, 1982, and to exclude the unrecovered portion from rate base during that period, in accordance with a stipulation between counsel for this Company and the Department of Public Advocate of New Jersey, a copy of which was presented to this meeting and ordered to be filed with the records of this meeting; and rr' WHEREAS, the management of this Company has advised this Board that in i$s judgment it is in the best interest of this Company to abandon Hope Creek Unit 2, to terminate the aforesaid contract with Bechtel insofar as it relates to the completion of Unit 2, to terminate the various other contracts relating to Unit 2
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ex' cept insofar as they are necessary for the continued construction of Hope Creek s
1 Unit I or are advantageous to retain other than for the completion of Hope Creek Unit 2, and to give notice of such termination to Bechtel before January 1,1982, i :
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.apd this Board concurs in such judgment of the management:
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' J ( NOW, THEREFORE, BE IT RESOLVED, that the project of this Company for a
the construction of Hope Creek UEit 2, and all rights of this' Company therein, be c
s and they heredy are abandoned, and that prior to January 1,1982 this Company
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give notice 3o (1) Bechtel Power Corporation of the termination of the aforesaid s
c'ontract with Bechtel insofar as it relates to the construction of Hope Creek Unit 3
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2,(2) the United StateiNuct' ear Regulatory Commission of the abandonment of t
's Hop (Creek 2 and withdrawal of this Company's applications for licenses with
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respect thereto, and (3) Atlantic City Electric Company of the abandonment of
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f Hope Creek Unit 2; and s
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FURTHER RESOLVED, that the officers of this Company be and they hereby are authorized and directed to take such other and further action as in their judgment may be necessary or advisable to effectuate the abandonment of Hope Creek Unit 2, the notification of the Nuclear Regulatory Commission and Atlantic City Electric Company with respect thereto, and the termination of the aforesaid
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contract with Bechtelin::ofar as'it relates to the completi:n of Unit 2 and the
_ contracts relating to Unit 2 except insofar as they are necessary for the continued construction of Hope Creek Unit I or are advantageous to retain other than for the
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4 completion of Unit 2, and to execute and deliver such notices and other written instruments and documents as they shall deem necessary or appropriate for such purposes.
I hereby certify that the foregoing is a true copy of resolutions duly adopted by the Board of Directors of Public Service Electric and Gas Company at a meeting held on December 23,1981.
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4 440 Assistant Secretary