ML20050E282
| ML20050E282 | |
| Person / Time | |
|---|---|
| Site: | Black Fox |
| Issue date: | 04/06/1982 |
| From: | Gallo J ISHAM, LINCOLN & BEALE, PUBLIC SERVICE CO. OF OKLAHOMA |
| To: | Atomic Safety and Licensing Board Panel |
| References | |
| NUDOCS 8204130194 | |
| Download: ML20050E282 (7) | |
Text
4/6/82
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UNITED STATES OF AMERICA
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NUCLEAR REGULATORY COMMISSION 72 EFP -C P2 Yd BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of the Application of
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Public Service Company of Oklahoma,
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Associated Electric Cooperative,
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Docket Nos. STN 50-556 and
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STN 50-557 Western Farmers Electric Cooperative )
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0 (Black Fox Station, Units 1 and 2)
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MOTION FOR TERMINATION 2
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WITHDRAWAL OF APPLICATION 3
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Public Service Company of Oklahoma, Ass i_a Electric Cooperative, Inc. and Western Farmers Electric Cooperative
(" Applicants") announced their decision, on February 16, 1982, to cancel the Black Fox Station nuclear project.
In light of this decision, Applicants hereby move the Atomic Safety and Licensing Board, pursuant to 10 C.F.R.
S 2.107, to enter an order terminating the instant proceeding and permitting Applicants to withdraw, without prejudice, their application for construction permits.
In support of the Motion, Applicants state:
1.
In August 1975, Applicants submitted an ap-plication to the United States Nuclear Regulatory Commission (the " Commission") seeking the permits necessary for the con-struction of the Black Fox Station as a nuclear generating pso3 2
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facility.
The Environmental Report submitted by Applicants, in support of the application, clearly demonstrated the long-run economic prudence of constructing a nuclear facility as opposed to a comparable fossil-fueled generating station.
In 1975, Applicants estimated the costs of nuclear Units 1 and 2, with in-service dates of 1983 and 1985, to be approximately
$624 per kilowatt and $645 per kilowatt, respectively.
2.
The Commission's safety hearings in the Black Fox proceeding were completed in February 1979.
At the close of these hearings, a complete cost reassessment and scheduling update performed by the Applicants established mid-1985 and mid-1988 as commercial operation dates for Black Fox's two nuclear units.
The estimated cost of construction had risen to S1,038 per kilowatt during the interim three and one-half years since the previous estimate.
It was Applicants' belief, however, that these schedule delays and estimated cost increases associated with the Black Fox project were typical in the industry and that the nuclear project was still the most economical way to meet projected capacity needs.
3.
Soon after the close of the safety hearings, and before any decision or construction permits were issued with respect to the Black Fox facility, the accident at the Three Mile Island Unit 2 nuclear facility occurred.
This l
totally unexpected event placed the Applicants in a unique
, position, having commenced work pursuant to a Limited Work Authorization and having the safety hearing record complete, but facing indefinite time delays and cost increases before the actual issuance of construction permits.
No other pending construction permit applicant faced a similar situation.
4.
The resulting three-year moratorium on nuclear licencing imposed by the Commission as a result of the Three Mile Island accident drastically and irreversibly escalated the cost of the Black Fox facility.
Today, Applicants' cost estimate for the Black Fox project, based on PSO financing costs and in-service dates of 1993 for Unit 1 and 1995 for Unit 2, has jumped to $4,472 per kilowatt.
Further, Appli-cants now fear that the promise of future backfitting require-ments will cause Black Fox costs to continue escalating at an unknown and uncontrollable rate.
5.
Applicants announced their decision to cancel the Black Fox Station nuclear project on February 16, 1982.
This decision was conveyed to the Atomic Safety and Licensing Board and parties by counsel for the Applicants during a conference telephone call which was held at 4:00 p.m. Eastern Standard Time on February 16, 1982.
6.
In order to insure a complete record in this case, Applicants filed the prepared testimony regarding the Black Fox Station project, which was presented during a rate
. case before the Oklahoma Corporation Commission; a report by Touche-Ross, a consulting firm under contract to the Oklahoma Corporation Commission; and the January 15, 1982, Order issued by the Oklahoma Corporation Commission, portions of which reference'the Black Fox Station.
7.
Applicants intend to preserve the Black Fox site for construction of future power-generating projects and are presently reviewing the Black Fox site for the purpose of developing an appropriate site restoration plan consistent with the ultimate dedication of the site for future power-generating projects.
This plan will be submitted to the NRC Staff for its review and approval.
8.
Paragraphs 1 through 7 establish that good cause exists for permitting withdrawal, without prejudice, of the application for construction permits and, further, Appli-cants assert that no prejudice will accrue as a result of such action.
See, In the Matter of Puerto Rico Electric Power Authority (North Coast Nuclear Plant, Unit 1), Docket No.
50-376, ALAB-662, 14 NRC (1981); In the Matter of Philadelphia Electric Company (Fulton Generating Station, Units 1 and 2), Docket No. 50-463-CP, ALAB-657, 14 NRC (1981).
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For good cause shown, Applicants' " Motion for Termination of Proceeding and Withdrawal of Application" should be granted.
Respectfully submitted, i
J p phfiIallo C5unsel for Public Service Company of Oklahoma ISHAM, LINCOLN &'BEALE Suite 840 s
1120-Connecticut Avenue, N.W.
Washington, D.C.
20036
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(202) 833-9730 Dated:
April 6, 1982 1-k
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7 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD T2 t,PR -8 P2 :M In the' Matter of the Application of
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Public Service Company of Oklahoma,
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';i, Associated Electric Cooperative, Inc. )
Docket Nos:."STN 50-556 and
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STN 50-557 Western Farmers Electric Cooperative
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(Black Fox Station, Units 1 and 2)
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CERTIFICATE OF SERVICE I hereby certify that copies of the MOTION FOR TERMINA-TION OF PROCEEDING AND WITHDRAWAL OF APPLICATION in the above-captioned proceeding were served upon the persons shown below by deposit in'the United States mail, first-class postage prepaid, this 6th day of April, 1982.
i Sheldon J. Wolfe, Esquire Docketing and Service Section Administrative Judge Office of the Secretary of Atomic Safety and Licensing the Commission Board Panel U. S. Nuclear Regulatory U.
S. Nuclear Regulatory Commission Commission Washington, D.
C.
20555 l
Washington, D. C.
20555 Atomic Safety and Licensing Mr. Frederick J. Shon Board Panel l
Administrative Judge U.
S.
Nuclear Regulatory Atomic Safety and Licensing Commission Board Panel Washington, D.
C.
20555 U.
S. Nuclear Regulatory-Commission Atomic Safety and Licensing Washington, D.-C.
20555 Appeal Board Panel U.'S.
Nuclear Regulatory Dr. Paul W. Purdom Commission Administrative Judge Washington, D.
C.
20555 U.-S. Nuclear Regulatory Commission j
c/o-Environmental Studies Group Drexel University 32nd and Chestnut-Streets Philadelphia, PA 19104
. Dennis C. Dambly, Esquire James H. Thessin, Esquire Counsel for NRC Staff Counsel for NRC Staff U.
S. Nuclear Regulatory U.
S. Nuclear Regulatory Commission Commission Washington, D. C.
20555 Washington, D.
C.
20555 Joseph R.
Farris, Esquire Mr. Maynard Human Feldman, Hall, Franden, Reed, General Manager
& Woodard Western Farmers Electric 816 Enterprise Building Cooperative Tulsa, Oklahoma 74103 P.
O. Box 429' Andarko, Oklahoma 73005 Mr. Clyde Wisner Public Affairs Officer Mr. Gerald F. Diddle NRC Region 4 General Manager 611 Ryan Plaza Drive Associated Electric Suite 1000 Cooperative, Inc.
Arlington, Texas 76011 P. O.
Box 754 Springfield, Missouri 65801 Mrs. Carrie Dickerson Citizens Action for Safe Michael L.
Bardrick, Esquire Energy, Inc.
Assistant Attorney General P. O.
Box 924 State of Oklahoma Claremore, Oklahoma 74107 112 State Capitol Building Oklahoma City, Oklahoma 73105 Mrs. Ilene H. Younghein 3900 Cashion Place Oklahoma City, Oklahoma 73112 Mr. Lawrence Burrell Route 1, Box 197 Fairview, Oklahoma 73737 w
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