ML20053A492
| ML20053A492 | |
| Person / Time | |
|---|---|
| Site: | 05000000, Hope Creek |
| Issue date: | 12/23/1981 |
| From: | Public Service Enterprise Group |
| To: | |
| Shared Package | |
| ML20053A466 | List: |
| References | |
| FOIA-82-204 NUDOCS 8205260147 | |
| Download: ML20053A492 (4) | |
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PUBLIC SERVICE ELECTRIC AND G AS COMPANY BOARD OF DIRECTORS December 23,1981 WHEREAS, two 1,067 megawatt nuclear fueled electric generating units (Hope Creek Unit I and Hope Creek Unit 2) presently scheduled for commercial operation in 1936 and 1989, resoectively, are under construction in Lower Alloways Creek Township, New Jersey, pursuant to construction permits issued by the United States Nuclear Regulatory Commission, and this Company has a general contract effective January 9,1974 with Bechtel Power Corporation (Bechtel) for such purpose, and this Company and Bechtel, as agent for this Company, have entered into various other contracts associated with Hope Creek Units 1 and 2; and WHEREAS, this Company has an agreement dated April 28,1977 with Atlantic City Electric Company (ACE), providing for the participation of ACE in the costs and output of Hope Creek Units I and 2 on the basis of an undivided interest of 95% for this Company and 5% for ACE, and under said agreement with ACE this Company has the responsibility and authority for the units' design and construction and the determination of the timing and nature of all obligations in connection therewith; and WHEREAS, the two units were conceived and designed together so as to take t
advantage of economies of scale at a time when this Company's electric peak demand was growing at an annual rate about 7.5%, as compared with the current projected annual rate of peak load growth of approximately 1.3%, and it is l'
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. now apparent that the capacity from Hope Creek Unit 2 is not needed to meet load by 1990, and anticipated fuel savings from operation of Hope Creek Unit 2 beginning in 1989 would require the expenditure of large amounts of capital beginning in 1984; and WHEREAS, this Company has invested approximately $1.5 billion, including 5265 million of allowance for funds used during construction (AFDC), in Hope Creek Units 1 and 2, of which approximately $335 million, including $50 million of AFDC,is allocable to Hope Creek Unit 2; and WHEREAS,if Hope Creek Unit 2 should be abandoned, this Company would expect to transfer a portion of the costs allocable to Hope Creek Unit 2 to Hope Creek Unit I as necessary therefor and to recover the balance of such costs, plus net cancellation and close out costs and nuclear fuel costs, all amounting to approximately $172 million af ter the Federal income tax effect, over a period of approximately 12 or 15 years through this Company's rates commencing July 1, 1982, and to exclude the unrecovered portion from rate base during that period,in accordance with a stipulation between counsel for this Company and the Department of Public Advocate of New Jersey, a copy of which was presented to this meeting and ordered to be filed with the records of this meeting; and WHE,REAS, the management of this Company has advised this Board that in its judgmebt it is in the best interest of this Company to abandon Hope Creek Unit 2, to termitiate the aforesaid contract with Bechtel insofar as it relates to the completion of Unit 2, to terminate the various other contracts relating to Unit 2 l'
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t 3-except insofar as they are necessary for the continued construction of Hope Creek Unit 1 or are advantageous to retain other than for the completion of Hope Creek Unit 2, and to give notice of such termination to Bechtel before January 1,1982, and this Board concurs in such judgment of the management:
NOW, THEREFORE, BE IT RESOLVED, that the project of this Company for the construction of Hope Creek Unit 2, and all rights of this Company therein, be and they hereby are abandoned, and that prior to January 1,1982 this Company give notice to (1) Bechtel Power Corporation of the termination of the aforesaid contract with Bechtelinsofar as it relates to the construction of Hope Creek Unit 2,(2) the United States Nuclear Regulatory Commission of the abandonment of Hope Creek 2 and withdrawal of this Company's applications for licenses with respect thereto, and (3) Atlantic City Electric Company of the abandonment of Hope Creek Unit 2; and FURTHER RESOLVED, that the officers of this Company be and they hereby are authorized and directed to take such other and further action as in their judgment may be necessary or advisable to effectuate the abandonment of Hope Creek Unit 2, the notification of the Nuclear Regulatory Commission and Atlantic City Electric Company with respect thereto, and the termination of the aforesaid contract with Bechtel insofar as it relates to the completion of Unit 2 and the contracts relating to Unit 2 except insofar as they are necessary for the continued construction of Hope Creek Unit 1 or are advantageous to retain otherthan for the
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. completion of Unit 2, and to execute and deliver such notices and other written instruments and documents as they shall deem necessary or appropriate for such purposes.
i I hereby certify that the foregoing is a true copy of resolutions duly adopted by the Board of Directors of Public Service Electric and Gas Company at a meeting held on December 23,1981.
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_e Assistant Secretary l
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August 26, 1981 I
i Mr. Unrold R. Denton, Diructor i
Of fico oY l'uclenr Runctor Reguldtion U.S. !!ucionr Requlatory Comminnion Washington, D.C.
20555 Ron Northern Indiana Public Corvico company nailly cenorating Ctation, Nuclear-1 lxicket No. 50-367 l
Const.ruction Pormit No. CPPR-104 1
Dear Mr. Dentons in May 1974, Const ruction Permit No. CPPR-104 was ininted t <> Nor thern Indiana Publie flervico Compan/ (N I P!:CO) for li,i t i I y Genet.it. ing !; tat lon, Nuc t ent-1 (nailly).
The.
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1 constructton Permit contained a intent dntu of comple-
.l tion of construction of Coptember 1, 1979.
on itIsrunty 7, 1979, HfPf;CO nubtr.itied on application p
f or an extennion of the corrpintion dato upoelf f ed in j
t he r< inst r uct inn Per mi t.
for Hallly.
This applient. ion l:
4 w.in noter...quent ly s.uppletnnnt ed by lutt et n dat ed A! yuut. 31, i
1979,,ered Novemorr 26, 1900.
A proceeding in euttently or..yt i re.; lin f o r c= t he At omic I;d f et y n!id I.icenning lionrd i...;.sril t hy t he al pl ica t ion f or on ex t onulon.
S On Au.;unt 2 (i, l'801, t he lion rd o f Dii ec t ur n o f N ! PRCO i
1<.e lded riot in construct nailly.
In light. of that i
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.:.... : ni,m i..aum. ~t,iiu uenico cen,nunu v..,
P.r. lincold R. Donton Page 2 Auguot 26, 1901 docasion, N!PCCO horoby withdrawn its application for sin oxtancion of the Construction Permit to,r Dailly.
Yours very truly, NORTHERN INDIANA PUDLIC DERVIClf COMPANY J
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Exocutivo Vice President and Chlof Opurating officer l
l STATE OF INDIANA i).58 courtry or I.AKs
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subscribed and sworn to before me this 26th day c>t
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My comission expires robruary 6, 1993 I
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