ML20053A491
| ML20053A491 | |
| Person / Time | |
|---|---|
| Site: | 05000000, Hope Creek |
| Issue date: | 12/23/1981 |
| From: | Anderson E Public Service Enterprise Group |
| To: | |
| Shared Package | |
| ML20053A466 | List: |
| References | |
| FOIA-82-204 PR-811223, NUDOCS 8205260146 | |
| Download: ML20053A491 (2) | |
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4:40/n/n News R_elqase f
FOR IMMED ATE RE1 !!ASE
Contact:
Edward F. Anderson D2 comber 3,
1981 Manager - Public In fo rma t ion he board of directors of Public Service Electric and Gas i.
Company t[ day (December 23) approved cancellation of the No. 2 nuclear unit at t 5e Hope Creek Ganerating Station.
Ocasons for the cancellation were the lack of need for the If90 unit in due to lower than previously anticipated growth in electric domand; t 1e financial burden of raising the necessary capital for con-struction; and uncertainties as to anticipated fuel savings to offset the additjonal capital costs due to factors beyond the company's control Such ur.ceh ta intie s include future oil and coal prices, the rate of 1
inflation, the cost of capi tal, electric load growth in the 1980's and 1990's, ul future federal and state regulation.
j 'Cance ll a t ion o f the unit does n2t indicate any change in hy nuclent support power as being essential to meet the nation's energy
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needs "
1,. t i d Robert I.
Smith, company chairman.
"The decision was based Inigely on today's e onomic realities.
Conservation and low electric ;ond grrwth have reduced the need for new capacity in the l
future."
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hs part of a continuous review of its construction program, the compa Ty has been evaluating the llope Creek project, especially the need for the No. 2 unit, for more than a year.
The project siso hos been :he subject of hearings by the New Jersey Board of Public Utilities (BPU).
"he company and the New Jersey Public Advocate, after discussio is, have submitted an agreement to the BPU which would provid for trent :en t of abandonment costs.
he agreement calls for the company to recover abandonment costs est mated at $172 million, after tax reductions, beginning July 1,
1 82, over 12 or 15 years.
The final decision with regard to cost r covery rests with the BPU.
onstruction of the unit, which had been scheduled for operation in 1989, is about 18 per cent completed.
The No. I uni't on which onstruction will continue, is approximately 38 per cent completed and planned for operation in 1986.
SE6G owns 95 per cent of the flope Creek station and the Atlantic ity Electric Company holds the other 5 per cent.
onstruction of the station, composed of the two 1067-megawat(
units, bep n in 1976.
The station is adjacent to'the company's p
i operating ;ia lem Gene ra ting Station on the Delaware River in Lower A110wayskreek, N.J.
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