ML20040A962

Forwards Ok Corporation Commission 820115 Decision in Cause 27068 Re Util Application for Rate Increase

ML20040A962
Person / Time
Site:	Black Fox
Issue date:	01/18/1982
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
ML20040A963	List: ML20040A962
References
NUDOCS 8201230014
Download: ML20040A962 (3)

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ISHAM, LINCOLN & BEALE n ,q p r COUNSELORS AT LAW q,g, 1120 CON N ECTICUT AVENUE. N.W.

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TELEPNONE 202-833-9730 82 JAN 20 P4:10 CMICAGO OFFICE ONE FIR $T N ATIONAL PLA, A

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Sheldon J. Wolfe, Esquire Mr. Frederick J. Shon Adninistrative Judge Administrative Judge Atomic Safety and Licensing Atomic Safety and Licensing Board Panel Board Panel U. S. Nuclear Regulatory U. S. Fuclear Regulatory Commission Commission Washington, D. C. 20555 Washington, D. C. 20555 Dr. Paul W. Purdom Administrative Judge U. S. Nuclear Regulatory ,

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Re: In the Matter of Black Fox Station, Units 1 ' N and 2, Docket Nos. STN 50-556 and STN 50-557 '

U. x Gentlemen:

In accordance with the Applicants' policy of full disclosure, I am enclosing a copy of the Oklahoma Co poration Commission's January 15, 1982, decision in Cause Fa. 27068 concerning the application for a rate increase filed by Public Service Company of Oklahoma ("PSO"). A copy of PSO's press release concerning the decision is also enclosed.

In pertinent part, the press release provides the following explanation concerning the fate of the Black Fox Station project:

The Commission denied PSO's @3 request for rate base treatment J l(

8201233014 820118 PDR ADOCK 05000556 G PDR

r Sheldon Folfe, Esquire Mr. Frederick J. Shon Dr. Paul k'. Purdom January 18, 1982 Page 2 of the construction in"est-ment for the Black Fox Nuclear Project. The Commission pro-posed instead that the project be converted to coal, and indicated that if this were done that full recovery of the nuclear investment, net of sal-vage recoveries, but including cancellation and termination costs which might be incurred, would be allowed over a 10-year period. The amount to be re-covered would be offset by the gain realized by PSO on a recent sale of cil and gas properties.

PSO has 30 days to respond to the Commission's invitation to convert the project. PSO will consult with the co-owners of the Black Fox Project before responding to the Commission.

It is interesting to note that aside from economic cost comparisons submitted by the parties -- all essentially negative with respect to the nuclear option, the Oklahoma Corporation Commission emphasized several other factors as influencing its judgment that Black Fox Station should be cancelled. The inability and unwillingness of the Nuclear Regulatory Commission and the political system at the federal level to reach timely decisions in the areas of standards and licensing of nuclear generating plants were specifically spelled out as risks which the Oklahoma ratepayers should not endure. Majority Opinion pp. 53-54. In particular, the OCC found that the Nuclear Regulatory Commissioners were dilatory in the resolution of the issues raised by the accident at Three Mile Island, and that the Applicants could have better controlled their destiny with respect to the prudence of continuing the Black Fox project if the NRC had been more willing to define its licensing policy in a timely fashion.

l Majority Opinion, pp. 55-56.

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Sheldon Wolfe, 5 squire tir . Frederick J . Shon Dr. Paul W. Purdom January 18, 1982 Page 3 Finally, I am enclosing a copy of the NRC's new applica-regalations concerning pending construction perr2t 1982.

tions which ironically were also issued on January 15, These new regulations will become effective on February 1980, when the Commissioners approved NRC on August 1, publication of the proposed rule for comment.

Sincerely,

/

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oseph Gallo F.nclosures JG/pm cc: Service List

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