ML20052A217

Forwards Util News Release Re Schedule for Facilities. Related Correspondence

ML20052A217
Person / Time
Site:	Palo Verde
Issue date:	04/23/1982
From:	Bischoff C JOINT APPLICANTS - PALO VERDE, SNELL & WILMER
To:	Callahan D, Cole R, Lazo R Atomic Safety and Licensing Board Panel
References
NUDOCS 8204280016
Download: ML20052A217 (5)

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PMsLIP M. PalNCE JQMN Br amY J. MsCMatk GOULDING eoM Ls Avt or AmsteeCE g Robert M. Lazo, Esq., Chairman Dr. Richard F. Cole Administrative Judge Administrative Judge Atomic Safety and Licensing Atomic Safety and Licensing Board Board U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C. 20555 Washington, D.C. 20555 Dr. Dixon Callahan Administrative Judge Union Carbide Corporation P.O. Box Y Oak Ridge, Tennessee 37830 In the Matter of Arizona Public Service Company et al.

(Palo Verde Nuclear Generating Station, Units 1, 2 and 3)

Docket Nos. STN 50-528, STN 50-529, STN'50-530

Dear Administrative Judges:

At the 1982 annual meeting of the Arizona Public Service Company ("APS"), held on April 22, 1982, Mr. Keith L.

Turley, President of APS, commented on the schedule for the Palo Verde Nuclear Generating Station. The gist of Mr. Turley's remarks is set forth in an APS News Release, which is enclosed for your information.

Sincerely, Charles A. Bischoff Attorneys for Joint Applicants CAB:],aw Enclosure b '

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sm ASLB Administrative Judges April 23, 1982 Page Two cc: Ms. Patricia Lee Hourihan Rand L. Greenfield, Esq.

. Lee Scott Dewey, Esq.

Edwin J. Reis, Esq.

Atomic Safety and Licensing Board Panel Atomic Safety and Licensing Appeal Board Panel Docketing and Service Section & ..

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For Release: On Receipt [

NEWS RELEASE ^32""Mi"2'if"*'*"

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Arizona Public Service Company

• P. O. Box 21666

• Phoenix, n'rizona'85036 ,I 8

APS PRESIDENT REPORTS TO SHAREHOLDERS AT 1982 ANNU\L MEETING PHOENIX -- Arizona Public Service Co. President Keith L.

Turley told stockholders attending the company's annual meeting here today (April 22) that 1981 was an excellent fear for APS, both financially and in terms of meeting the long-:erm energy needs of its more than 500,000 customers.

Turley said earnings reached record levels las: year, while both internal cash generation and cash flow impro.ed. He attributed the favorable financial results primar:1y to the Arizona Corporation Commission's decision on APS' last rate .

case and favorable changes in the federal tax law.

The company expects continued improvement in ::s financial l

situation during 1982, Turley said. Barring some rajor change in the economy, he added, the common stock sale p_'anned for later this year should be the last one of the decade.

l Reflecting on the changes which have occurred since the g i

company was founded in 1952, Turley said the stat;stics seem -

1 l unreal. Instead of 120,000 electric customers, the company now has almost 400,000. Instead of 320 megawatts of capacity, generation resources now total 3,634 megawatts. And instead of

-more-t_

5 ADD 1 ...and instead of using about 2,000 kilowatt hours of electricity per year, the average APS residential customer now uses over 10,000 kwh --

five times as much.

During this period, Turley added, the cost of energy to consumers was decreasing, until the Arab oil embargo turned energy economics and the economy in general topsy-turvy.

Turning to current operations, Turley told the shareholders that demand for electricity in the company's service territory continues to grow, requiring the construction of new generating facilities such as the Palo Verde Nuclear Generating Station.

APS is building the three-unit plant 55 miles west of downtown Phoenix for itself and other western utilities and will operate it upon completion.

"To date," Turley said, "Palo Verde has been one of the best nuclear projects in the country, singled out for the attention paid to safety and quality construction and with a cost control record that beats inflation."

Turley said a thorough review of the schedule for Unit One, which is 95 percent complete, shows that it may not be brought into commercial operation as early next year as planned.

"The complexity of the transition from the construction to start-up phase; delays in the delivery of key equipment from manufacturers; and the necessity to augment the plant's emergency response system as a result of the leasons learned from Three Mile Island all apparently will contribute to a schedule slip," Turley said.

-more-

ADD 2 ... slip," Turley said.

He added that the precise length of the slip won't be known until the in-depth review is completed in July, but APS has concluded that the delay will only be a matter of a few months and that the unit will go into commercial operation in 1983.

"Our primary objective," Turley added, "is to be absolutely sure that the same attention to quality and safety during construction is maintained in the transition to plant operation. Expeditious operation of Palo Verde is extremely important, but our schedule must and will allow us the time to maintain the highest standards of quality and safety."

Following reports by Turley and other company officers, the shareholders elected the Board of Directors and approved an amendment to the company's Articles of Incorporation increasing the authorized serial preferred stock, $25 par value, from 3 to 10 million shares.

(CB) Iff (50-82) 9 e