ML20039E658
| ML20039E658 | |
| Person / Time | |
|---|---|
| Site: | Wolf Creek  |
| Issue date: | 12/22/1981 |
| From: | Eisenhut D Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20039E655 | List: |
| References | |
| NUDOCS 8201110139 | |
| Download: ML20039E658 (3) | |
Text
p-DEC.2 21981 STAFF SAFETY EVALUATIO.1 90LF CREEK GENERATING STATION, U11T NO. 1 Introduction An application for a7endment to the Construction Pernit of the Wolf Creek Generating Station, Unit No.1, was forwarded on July 30,-1979. Subsequent to that subnittal, an anendment to the application for amendment was forwarded' on.Novenber 20, 1981.
The purpose of the application, as amended, is to provide for the addition of Kansas Electric' Power Cooperative, Inc. (KEPCo) as an applicant for all licenses previously requested and for the transfer of three percent ownership shares each from Kansas Gas and Electric Cmpany and Kansas City Potter and Light Company.
IRC Financial Qualifications Requirenents The NRC regulations ralating to the deterraination of an applicant's financial qualifications are Section 50.33(f) and Appendix C to 10 CFR Part 50.
These regulations state that there must be reasonable assurance that the applicant can obtain the funds to design and construct the plant including the initial fuel core.
In Public Service Company of New Hanoshire, et. al. - (Seabrook Station, Units I and 2) 7 HRC 1 at 18, CLI-78-1 (1978) the Comission interpreted the reasonable assurance standard by stating that, "... a
' reasonable assurance' does not mean that an applicant will never be pressed for funds in the course of construction.
It does nean that the applicant nust have a reasonable financing plan in the light of relevant circumstances."
Following is a sumary of the staff's evaluation of KEPCo's financial qualifica-
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.W gi DEC 2 L 1981 Sumary KEPCo is a mtubership generating and transmission electric cooperative duly organized under the laws of the State of Kansas.
It will provide power to its twenty-five full-requirement nenber distribution cooperatives. VIPCo has contracts with these cooperatives that requiro 23 of the cooperatives to purchase all of their powr requirements throuqh the year 2020. The remaining I
2 cooperatives have contracted with KEPCo for partial load requirenents for po wr supply.
On October 22, 1981, the U.S. Rural Electrification Administration (REA) issued a $200 million loan guarantee comitment notice to KEPCo. An amount substantially in conformity with KEPCo's total capital contribution to the subject facility.
Due to this advanced state of KEPCo's financial arrangements for the full amount of its particioation in '.lalf Creek (i.e., receipt of the REA loan guarantee coer11tnent notice), KEPCo has demonstrated a reasonable financinq plan in the light of relevant circumstances. This satisfies i:RC's financial qualifications require 1ents, as described above.
In accordance with the provisions of 10 CFR 50.33(f) and Aopendix C to 10 CFR Part 50, Kansas Electric Power Cooperative, Inc. has demonstrated reasonable assurance that it can obtain the funds to purchase a 6 Dercent undivided ownership interest in Wolf Creek. Accordingly, KEPCo is financially qualified under the provisions of the above regulations to purchase such an interest.
The applicants are required to sutnit copies of the executed joint ownership agreenent, as connitted in their letter dated !Jovember 20, 1981.
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. Conclusion The addition of KEPCo as an owner does not create any safety consideration concerning Wolf Creek, since AEPCo is financially qualified and Kansas Gas and Electric company will retain exclusive responsibility for the design, construction, and operation of the facility. Therefore, we have concluded, based on the considerations discussed above, that with respect to the ownership addition authorized by /wendment No. I to LPPR-147, there is reasonable assurance that the proposed facility can be constructed and operated at the proposed location without undue risk to the health and safety of the public, and that the issuance of this aiaenoment will not be inimical to the cosaon defense and security or to the health and safety of the public.
Date of Issuance: December 22, 1981 1
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- SEE PREVIOUS YELLOW FOR CONCURRENCE.
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