ML20040H338
| ML20040H338 | |
| Person / Time | |
|---|---|
| Site: | 05000467, Allens Creek File:Houston Lighting and Power Company icon.png |
| Issue date: | 02/12/1982 |
| From: | Oprea G HOUSTON LIGHTING & POWER CO. |
| To: | Harold Denton Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 8202180115 | |
| Download: ML20040H338 (2) | |
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Mr. Harold Denton, Director a
Office of Nuclear Reactor Regulation s
U. S. Nuclear Regulatory Commission e
7920 Norfolk Avenue Bethesda, Maryland 20555
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Dear Mr. Denton:
During my conversation with you on February 9,1982, I notified you that Houston Lighting f, Power Company was in the process of re-evaluating the feasibility of continuing the Allens Creek project and I made mention of a news release and the timing for such release. Attached is a copy of the~
s release which was issued this date to the news media.
As I indicated during our meeting, the final decision as to the outcome of the Allens Creek project could take a few months.
However, I will keep you informed should anything significant materialize during the interim.
Very tru
'y urs l I, ?lk-(
GWO /sra Attachment cc:
J. H. Goldberg l
G. Copeland job g
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'8202180115 820212 PDR ADOCK 0500044 A
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News from Houston Lighting & Power Company @
ELECTRIC TOWER HOUSTON, TEXAS 77001 FOR FURTHER INFORMATION PLE AsE CONTACT:
FOR RELEASE:
Graham Painter (713) 229-7125 Houston Lighting & Power Company announced today that it is reevaluating plans for its Allens Creek Nuclear Generating Station.
Originally announced in 1972, the plant is still in the Federal licensing process and not yet under construction.
Citing uncertainties in maintaining construction schedules and cost estimates, HL&P President Don D. Jordan said all options are being explored to manage Houston's electricity needs in the 1990's when Allens Creek is scheduled for completion. These options include completion of Allens Creek in its present form, use cf the Allens creek site for a coal plant, and possibilities available to recover as much of HL&P's investment in the project as possible, including the sale of major equipment components already purchased.
HL&P has had an application for a construction permit for the Allens Creek facility pending before the U. S. Nuclear Regulatory Commission since 1977.
Since that time, soaring interest rates, inflation, changing Federal requirements and regulatory delays have driven up the price of nuclear construction.
The Allens Creek cost estimate has grown from approximately $600 million per unit in 1972 to over $2 billion per unit today.
HL&P's financial position is such that it must continually reassess its ability to raise the money necessary to maintain its huge construction program.
"Allens Creek was a prudent, workable r -ject when it was conceived a decade ago," Jordan said, "but conditions have changed to the point that reevaluation is necessary." During the study period, Jordan stressed that expenditures associat?d with Allens Creek will be reduced to an absolute minimum.
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