ML20053A508

Forwards Clarification of Status of Licensing of Plants Deferred by Util & Cautions Against Expenditure of Significant Staff Resources on Plants W/O Contacting Licensing Branch Chief

ML20053A508
Person / Time
Site:	05000000, Hartsville, Phipps Bend, Yellow Creek
Issue date:	04/01/1982
From:	Miraglia F, Schwencer A Office of Nuclear Reactor Regulation
To:	Tedesco R Office of Nuclear Reactor Regulation
Shared Package
ML20053A466	List: ML20053A465 ML20053A491 ML20053A492 ML20053A498 ML20053A508 ML20053A523 ML20053A525 PNO-II-81-059, on 810724,util Announced Indefinite Deferment of Const at Phipps Bend & stretch-out of Const Schedule for Yellow Creek & Hartsville
References
FOIA-82-204 NUDOCS 8205260163
Download: ML20053A508 (3)

Text

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DISTRIBUTION:

LBr2 File ASchwencer FMiraglia List of Directors,A/D's, and BC's (attached)

NOTE TO:

Robert L. Tedesco Assistant Director for Licensing Division of Licensing FROM:

A. Schwencer, Chief Licensing Branch No. 2, DL F. Miraglia, Chief Licensing Branch No. 3, DL

SUBJECT:

USE OF STAFF RESOURCES ON HARTSVILLE Al, A2, B1, B2, PHIPPS BEND 1 14 2 AND YELLOW CREEK - PLANTS DEFERRED BY TVA As you know, TVA has announced indefinite or long term deferral of -

construction of the eight subject nuclear plants. The purpose of this note is to provide the attached diarification of the status of licensing on each of these plants and, by copy of this note to all licensing review groups, assistant directors and branch chiefs, to caution against expending significant staff technical resources on any aspects of these plants without first contacting the designated licensing branch chief.

S A. Schwencer, Chief Licensing Branch No. 2 Division of Licensing F. Miraglia, Chief Licensing Branch No. 3 Division of Licensing

Attachment:

As stated 8205260/(,3 n

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HARTSVILLE PHIPPS BEND Y E L L 0 t' CRFFV Al A2 B1 B2 1

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Licensing Branch LB#2 LB #2 LB#3 Project Manager Uncssigned Unassigned Unassigned i

CP Issued 5/9/77 5/9/77 5/9/77 5/9/77 1/16/78 1/16f 78 11/29/78 11/29/78 CP Latest Date for Construction 2/28/83 8/31 / 83 2/29/84 8/31 /84 4/1/84 4/1/85 5/1/85 5/1/86 Compl etion*

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TVA's Estimated Completion of Construction INDEFINITELY INDEFIN1TELi Indefinitely Status (TVA DEFERRED DEFERRED DEFERRED Deferred Deferred phone call -

Mark Weisenburg to A. Schwencer 3/30/82)

Yellow Book 33%

26%

17%

7%

29%

5%

28%

3%

9/30/81 Data Compl ete Compl ete Compl ete Complete Compl ete Complete Compl ete Complete

](,p Submittal of FSAR. & ER Not Scheduled Not Scheduled Not Scheduled Not Scheduled

• 10 CFR 2.209 calls for CP renewal applications to be filed at least 30 days prior to expiration of the " license" (which in these cases are CP's).

10 CFR 50.55(b) covers "gcod cause shown" bases the Commission will recognize for CP. extensions.

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c DISTRIBUTICN SHEET 01 rectors

' t? a le.'i 13peded S'$- (Ej Roger Matts'on P-1102 Darrell Eisenhu't 528 E n:. e C r e e,.c

• EFF359 Hugh Thc=p' son 244 Stephen Hanauer 278 Richans Volleer P-202 Assistant Directors Malcolm Ernst 266 P-932 Wayne Houston P-1102 Lester Rubenstein Wiiliam Johnston P-302 Frank Schroeder 278

' James P. Knight P-530 Themis Spets P-1132 54 5 Robert Tedesco 110 Daniel Muller AR-5111

' Branch Chiefs James Miller 340 AR-5200 Warren Minners 216 Ronald Ballard Victor Benaroya

.P-302 Den Bette Voss Moore 228 Carl Berlinger

'P-924 Olan Parr P-1022 Robert Bosnak P-522

(enneth Ecrbn6 1

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William Regan AR-5109

' Walter Butler P-932 Faust Rosa P-1030 Zoltan Rosztecsy P-234 F rIk'Cenge)

P-712-Franz Schauer

.P-530 Bros, shco-e P-t/12.c:

5tephen Skjet AR-5103

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N William Gamill P-730 Donald Skovholt 286 Walter Haass P-320 H. Srinivasan P-1000 Jerry Hulman P-802 416 Wmen H A2 eros P-83g Ashok Thaeant 216 P-514 Robert Jackson Karl Kniel 268 s

George Lear P-214 Dennis Ziemann' AR-5221 John Zwolinski 228 I

F. Pya-no M Gh)$ 315

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Harold ?. Denton, Director C

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U.S. "uclear Regulater" Ocnnission Nashington, DC -

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is recueste?. 5" Mcwar ' Fau kner cf "cu s aff in a :sienne-a conversa-icn cith me, 're !re pr:vi' ins; cu -ith irfor:2.icn re ardin :e ent schedule enan;** '-- < "-

="ville, ?hi: :s e.

S an Yellou Creak 'IuclePr ?lar*s.

~ke revised fuel icat dates fer trese c1?nts ?re as follous:

Hartsville Unit A1

- January *:00 Unit A2

- January 10c1 Phipps 3end Unit 1

- January lee?

Yellow Creek Unit 1 - Juiv 1950 l

'!e plan to subc:it the final safety analysis recorts for these cients tuc and one half years in advance of the above fuel load dates.

Hartsville Units 31 and 32, Phipps Bend Unit 2, and Yelic'r Creek Unit 2 ha"e been indefinitely deferred.

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?*r. Harold R. Denten August 18, 181 Construction activities trill continue at Martsville and Yellow 4

Creek, but at a slower pace. At Hartsville, the present project i

staff of approximately 4,100 employees vill be reduced to 2,350 and at Yellow Creek, the staff will be re?uced from the present level of approxicately 3,000 to 1,700.

Construction activities at P5ipps 3cnd will be halted for the present time e.nd the staff t'ill he reduced _frem the present 1evel cf apprexiteteir 2,500 c a tkeleton creu of 300.

All of these nanpo'rer reiuctier. :131 tal:e p1 ace ovar the next six cenths.

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v' aces P. O'Reilly, Directer Office of Inspection end Enforce?.ar-

'J.S. 1.*uc1=ar ?.egu1atcr" Ccamissios Region II - Suite 3100 101 Marietta Street Atlanta, Oecrgia 30203 i

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l' arch 4, 1982 FRElitilNARY liGTIFICATIOri 0F EVEitT UR UNUSUAL DCCURREtiCE PNO-II-82-25 This preliminary notification constitutes EARLY notice of events of PdSSI' OLE safety or public interest sign,ificance.

The infonnation is as initially received without veriff-Cdtion or eValudtion, and is bdsICally all that is knOWn by IE staff on this date.

FACILITY: Tennessee Valley Authority Licensee, Emergency Classification:

llortsville Units A-1 ond A-2 A iiotification of Unusual Event LN>cket ilos. 50-513 and 50-519 4 Alert Hartsville, Tennessee

'i Site Area Emergency Yellow. Creek Uni t I

_ General Emergency s

Docket No. 50-556 X Hot Applicable luka,flississippi

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SUBJECT:

DETERRAL W TVA U!1ITS The Tennessee Valley-Autnori ty bnard of directors voted 2-1,. tot +

defer construction indefinitely on Hartsville Units A-1 and A-2 and Yellow Creek Unit The board's vote followed several weeks' stuoy of the course TVA should take with its construction program, a process thh t includwi e s taff report, public hearings throughout the TVA servich area, ano an evaluation of the staf f's economic analysis by the University of Tennessee.

The board also av'.harized the TVA staff to analyze the feasibil ity of substi tuting coal-fired plants t'or nuclear units.shenever additier.el generating facilities are necded in the future.

TVA last year deferrcc vicrk on Hartsville Units B-1 and B-2, Yellow. Creek' Unit 2, and Phipps Bend Units 1 and 2.

TVA's Bellefonte and Watts Bar constructi'on projects are unaf fected by the deferral action.

Ulde media interest is expected because of the continuing coverage of this issue in the TVA area and no tinr. wide.

This Pil is issued for information only.

Region II ( Atlanta) received notification of this occurrence by telephone from the licensee at 1:00 p.m. on llarch 4.

Contact:

F. 5. Cantrell, RII 242-5561; R. C. Lewis, RII 242-5680 DIS TRIBUTI0ri:

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11riBii Phillips4.LCE/W uillste Landow Cluinnan Pallad tna CD0 flRR

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- OIA Conrn. Gi1insky AEOD RES Cown. Srad ford PA Air Rights t%IL:

Conm. Ahearne llPA SP INPO IE:TAS Cosen. Roberts ELD NSAC ADM: Doc. flgt. Br ACRS Appl icoble Resident Si te _.

NSOC: S. Ebbins SECY Regional Offices CA Appliceble Utility iQ

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Helping Build Mississippi P. O. B O X 16 4 0, J AC K S O N, MIS SIS SIP PI 3 9 2 0 5 '

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December 21, 1981 NUCLEAR PHOD' JCT 60N DEPARTMENT U. S. Nuclear Regulatory Commission Of fice of llanagement and Program Analysis.

Washington, D. C.

20555 Attention: 11r. R. A. Hartfield, Chief

' llanagement Information Branch

SUBJECT:

Grand Gulf Nuclear Station Units 1 and 2 Docket Nos. 50-416 and 50-417 File 0260/L835.0/0472 i

Updated Information Pertaining To The Construction Status Report AEClf-81/497 In, accordance with the instructions provided in your letter dated October 30, 1981 (liAEC-81/234) Mississippi Power & Light Company is submitting (NUREG-0030, information reflecting changes to the Construction Status Report Yellow Book).

The infornation is presented in the new fornat as requested and as

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Construction on discussed with fir. Bill 1,ovelace and members of our staff.

Unit 2 uns halted on December 21, 1979; therefore, no progress is reported on Unit 2 since our January 1, 1980 update.

Information has been transposed fron the data for Unit 2 in the revised earlier submittals in order to represent format.

Construction status on Unit I currently stands at 93% complete and Unit 2 is 22% complete.

Projected completion dates are provided as follows:

Fuel Commercial Load Operation Unit 1 2/82 8/82 Unit 2 Under Review Under Review Additional information is presented in the attachments which reficct 30, 1981.

These changes to information provided to us in letter dated October changer are denoted by (*).

Wng&L JC. S-

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AEbM-81'/497-MISSISSIPPI POWER & LIGHT COMPANY Page 2 If you have any questions or require additional information, please

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contact this office.

Yours truly, VfDs L. F. Dale Manager of Nuclear Services J

RFP/JGC/JDR:ph

'$~~ Attachments

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Mr. N. L. Stampley (w/a) cc:

Mr. R. B. McGehee (w/a)

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Mr. T. B. Conner (w/a)

Mr. G. B. Taylor (w/a),

Mr. Richard C. DeYoung, Director (w/a) 0ffice of Inspection & Enforcement.

U. S. Nuclear Regulatory Commission Washington, D. C.

20555

- Mr. Bill Lovela'ce (w/a)

Management Information Branch U. S. Nuclear Regulatory Commission Office of Management and Program Analysis Washington, D. C.

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CONSTRUCT 1bNSTATUSREPORT I

Pcgi'Nn: !2-045

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i NUCLEAR POWER PL' ANTS Status aq.cf:.09/30/81 GRAND CUI.F 1

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PLANT CllARACTERISTICS:

l KEY PERSONNEL:

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Docket No:

05000416 Corporate Conta.ct:

• N. I..

Stampley, Senior Vice President, CP No. & Date Issued:

CPR'-118/09-04-74, Nuclear CP Expiration Date:

• 03-01-82 Corporate -Address:

-P. O. Box'1640 Applicant:

Mississippi Power &

Jackson, Mississippi 39205 Light Co.

Plant L.ocation:

IE Region:

II Corporate Phone No:

(601) 969-2335 AE:

Bechtel NRC LPM:

D. 1, lou.s t on.

NSSS:

General Electric IE Principal Inspector:

Constructor:

Bechtel

-Construction:

J. K. Rausch' Reactor Type:

BWR

-Test and Startup:

A. Wagner (R'esident Inspector)

DER (INE):

1250 IE Resident Inspector:

FUEL LOAD DATE CllANGES INSPECTION STATUS:

TIME PERIOD AS REPORTED pY UTILITY:

Report New Reason for Change Report Beg Date End Date Date Schedule Reported By Utility Number Of Insp.

Of Insp.

01-07-77 10-00-80 Construction Delay 09-04-79 11/00/80 No Reason.Given 01-11-80 09-00-81 No Reason Reported.

05-12-80 08-00-81 No Reason Prov,ided 01-16-81 12-00-81 No Reason Provided

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02-01-82 Re-evalua' tion of,,

• 12-16-81 construction progress LOCALPUBLICDOCUMENTROOM$

• c/o Ms. G. Keef Ilinds Junior College s.

1 McLendon Library Ii Raymond., Ms. 39154

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• Reflects changes to information provide'd' in NRC let.ter datek October 30, 1981.

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CONSTRUCTI,0N STATUS REPORT Pc9 a.IG:

2-1046' i

CRAND CULF 1

'NUCLEAPd POWER Pl. ANTS I

• Stratua as ef: 09/30/ffl

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'f' CONSTRUCTION STATUS:

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Applicant's C'urrent Estimated Fuel Loading'Date:

• 02-01-82 Applicants,Co,nstructionbomp,letion Applicant's P'revious Estimated Fuel. Loading Date:

• 12--00-81

,Es,timate As Defined in'CP:

Applicant'e Estimated Fuel Loa'd.ing Date At CP Issuance:,03-00-79 -'

,(Earliest)

'09-01-1980 Applicant's Curreht Estimated Commer.cial Operation Date: 08-00-82 (Latest)

• 03-01-1982-Current Estimated Percent. Construction Complete: *93% -

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Comments Regarding Current Construction Status:

• None ESTIMATED

ACTUAT, ESTIMATED ACTUAL ESTIMATED START START COMPLETION COMPLETION

% COMPLETED Mobilize and. prepare site:

• 1 03-00-74

,04-00-74

,100%

Place structural concrete:

• 1 12-00-74 11-00-81 100%

Install reactor pressure vessel:

• 1 02-00-77 05-00-77 1,00%

Install large bore process pipe:

• 1 04-00-7.5 02-01-82 99%

Install large bore pipe han'gers, restraints and snubbers

• 1 03-00-76 00-82 94%

Install small bore pipe:

• 1 09-00-76 01-00,82 99%

Install cable tray:

• 1

,04-00.7.6 05-00-80 1,00%

. Install exposed metal conduit:

• 1 00-77 01-00 82 96%

Install power, control, instrumentation and security cable:

• 1 11-00-77 01-00-82 95%

Install electrical terminations:

• 1 02-00-78 01-00-82 91%

Conduct reactor cold I;ydrostatic, test:

• 1 12-00-80 12-00-80 103%

Conduct hot function test:

Note 2 I

Conduct preop and acceptance tests necessary for;.

fuel load

• 1 05-00-79 02-00'-82 47%

'l Note 1 Not provided because activities are in progress or complete Note 2 Not applicable to BWR's Reflects changes to inforntaion provided in NRC letter dated October 30, 198,1.

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C0'USTRUCTION STATUS REPORT l

• Paga N3: ' 2,047 FUCLEAR POWER PLANTS

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Status as'of:' 07/30/81 GRAND GULF 2 l.

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KEY PERSONNEL:

Docket No:

050.00417 Corporate

Contact:

• M. L. S'tampley, Senior Vice President,

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CP No. & Date Issued:

CPR-119/09-04 Nuclear CP Expiration Date:

• 10-01-84 Corporate' Address:

"E. O. Box 1640 Applicant:

Mississippi Power &,

. Jackson, Mis'sissippi 39205 Light Co.

Plant Location:

IE Region:

11 Corporate Phone No:

(601) 969-2335 AE:

Bechtel NRC LPM:

D. Houston NSSS:

General Electric IE Principal Inspector:

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Constructor:

Bechtel

-Construction:

J. K. Rausch Reactor Type:

BWR

-Test and Startup:

A. Wagner (Resident Inspector) o DER (MWE):

1250 IE Resident Inspector:

INSPECTION STATUS:

FUEL LOAD DATE CHANGES TIME PERIOD AS REPORTED BY UTILITY:

Report New Reason for Change Report Beg Date End Date Date Schedule

' Reported By Utility Number Of Insp.

Of Insp.

.06-25-76 03-00-83 No reason reported for this slippage by the utility.

01-07-77 07-00-83 Construction delays 01-11-80 09-00-84 No reason reported 09-15-80 08-00-85 No reason reported

• 12-16-81 Under No reason reported Review

' LOCAL PUBLIC DOCUMENT ROOM:

• c/o Ms. G. Keef Hinds Junior College McLendon Library g,

Raymond, Ms. 39154 Reflects changes to informta' ion provided in NRC letter dated October 30, 1981.

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CONSTRUCTION STATUS REPORT Prge N5:

2-b48 '

NUCLEAR POWER PLAN'TS Stetus as of: 09/30/81 GRAND CULF 2 CONSTRUCTION STATUS:

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g Applicant'sChrrent Estimated Fuel Loading Date:

• Under review Applicants Construction Complet' ion..

Applicant's Previous Estimated. Fuel Loading Date:

• 08-00-85 Estimate As Defined in CP:

Applicant's Estimated.F.uel Loadi.ng Date At CP Issuance:

03-00-81 (Earliest)

• 04-01-1983 Applicant'sCurrentEstimatedCommercialOperationDatf: Under review.

(Latest)

• 10-01-1984

Current Estimated Percent Construction Complete: *22%

Comments Regarding Current Construction Status:

• Construction haulted on U-2 as of December 21, 1979.

ESTIMATED ACTUAL ESTIMATED ACTUAL.

ESTIMATED START START COMPLETION COMPLETION

% COMPLETED Mobilize and prepare site:

03-00-74

• 3 04-00-74 100%

Place structural concrete:

01-00-78

• 3 60%

Install reactor pressure vessel:

08-00-79

• 3 10%

Install large bore process pipe:

04-00-78

• 3 36%

Install large bore pipe hangers, restraints and snubbers 10-00-79

• 3 15%

Install small bore pipe:

• 3 0%

Install cable tray:

12-00-78

• 3 15%

Install exposed metal conduit:

• 3 0%

Install power, control, instrumentation and security cable:

• 3 0%

Install electrical terminations:

• 3 0%

• 3' 0%

Conduct reactor cold hydrostatic test:

Conduct hot function test:

Note 2 l

e Conduct preop and acceptance tests necessary for,'

s g,

fuel load

• 3,.

0%

Note 2 Not applicable to BWR's i

Note 3 Construction haulted on U-2 as of 12/21/1979 Reflects changes to information provided in NRC letter dated October 30, 1981.

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Mr. Harold R. Denton, Director Office of Nuclear Reactor Regulation

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United States Nuclc. r Regulatory Cor...ission k'ashington, D. C.

20355 SHEARON HARRIS '!UCLEAR POWER PLXIT, UNIT NOS.1 AND 2 DOCKET NOS. 50-400 M!D 50 /.~i DOCKETING OF FINAL SAFF.TY ANALYSIS PIPORT AND ENVIRONMENTAL REPORT - OPERATING LICE'.;SE STAGE

Dear Mr. Ecnton:

Ey application dated June 3,1971, Carolina Power & Liu:.t Company (CP&L) applied for Construction Permits and 40-year Cpers.ir.g Licenses pursuant to Section 103 of the Atomic Energy Act of 1954 as amended, to construct and operate the Shenron Harris Nuclear Power Plant (SHNPP) Iccated at New Hill, North Carolina.

On January 27, 1973, Construction Permits for these units were issued.

By letter dated June 26, 1980, CP&L submitted an amended Applida~ tion for Operr, ting License (OL) acccmpanied by cc-Les of the FiEal Saf ety Analysis.ieport (FSAR) and the Environmental Report

. Operating License Stage (F2-CL).

In accordance with Mr. D. G. Eisenhut's letter of November 25, 1981 concerning the Acceptance Revi,au of CPSL's Application fc-i'L for SHNPP, CPSL hereby submits the folJ oving inforuntien for the T.

detailed review, and in support of the iscuance of an OL for eac... unit:

1.

'Ihree,(3) signed originals of the amended Applicaticn, 2.

Fif,t".en (15) copics of the G:neral Informatian Section,

3., ;F6rty (40) copies of the FSAR, and

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4. '" Forty-one (41) copics of the ER-OL Distribution of the above documents in accordance with Enclosure 1 of the November 25, 1981 letter will be complete within 10 days after docketing.

CP&L will amend the SHNPP FSAR and ER-OL within three months of the docketing date t6 address the additional information requested in

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Enclosures 2 and 3 to the November 25, 1981 letter.

In addition, CP&L

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will update the documents to be in conformance wi h present designs.

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• 3Mr. Denton December 13, 1931 On December 17, 1980, CP&L announced the revision of the construction schedule for Unit 1 of Sle:PP.

The com:ncrcial operation date was revised from March tt, September of 1985.

Additionally, on December,16, 1981, CP&L announced the cancellation of Units 3 and 4, cnd a revised operat*:n date for Unit 2.

Therefore, the sch.' ale for the SID.'PP units is as follows:

Unit Fuel Load Centercial Operation 1

Decc=ber 1, 1984 Sente=ber 1, 1985 2

June 1, 1988

arch 1,1989 Due to the interval between commercial operation of Unit 1 and Unit 2, it is r,cquested that only Unit 1 be considered for an operating license

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at this time.

Consistent with this, the Federal Register notice pub-lished pursuant to 10CFR 2.105 should limit the opportunity for a he ring to consideration of the Unit 1 operating license. A new proceeding.culd j

then be required to consider the Unit 2 oper ting license, and would be l

instituted closer to the in-service date for that unit.

I If you have any questions or if you anticipate any delays in beginning your detailed review, please contact our staff icccdiately.

4 Yours very truly,

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' J.;,A. Jone Vice Chairman JAJ/lr (3540) cc:

Mr. E. A. Licitra (NRC)

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Wash.mgton Public Power Supply System g

Box 1223 Elma. Washington 98541 (206)482-4428 September 9, 1981 G03-81-2437

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Docket flo:

50-508 and 50-509 Mr. D. G. Eisenhut, Director Division of Licensing U.S. iluelear Regulatory Cormission Office of Tiuclear Reactor Regulation Washington, D.C.

20555

Subject:

SUPPLY SYSTEM NUCLEAR @ROJECTS.c3.Ati[L5, OPERATING LICENSE APPLICATION

Reference:

Letter., D. L. Renberger to D. G. Eisenhut,

Subject:

WPPS.S Nuclear Projects 1, 2, 3, 4 and 5 Operating Lfcense Application Schedules, dated August 8,1980 The joint operating' license NYpNcTa(i[o'p. for the Supply System Nuclear

,Py_ojects 3 and 5 has been scheduled forfsobmiltalfto the staff 'in fiir31,3 UR8L This'.date is consistent with date for Unit 3' and represents an@the targ@et construction completion eJ2Ea'ti in the referenced letter.

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of the schedule provided The SupplyfSystem and the Architect Engineer / Construction Manager (AE/CM) have recently completed'an extensive review of the construction schedule.

A target schedu)QQen developegcLwguld_. support construction completion and geweg,fwopgay.fuSuse.gs8g The milestones within this target schedule have Deen accelerateo by providing substantial financial ince'ntives to the AE/CM and to construction contractors whose work is on the critical path for meeting the accelerated completion dates.

The April,1982 submittal date for the OL application provides for a two month acceptance review and 38 months after docketing prior to the accelerated, fuel. load date.

The current construction slowdown on Unit 5 has not, at this time, affected the scheduled completion dates' for that ' unit.

This effect will, of course, be reassessed following resumption, of full construction activities.

The reduction of activities at Unit 5 has assisted the acceleration of activities on Unit '31and further increases the probability for achieve-ment of the earlier schedule.

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- If you have any questions regarding this schedule, please contact the WNP-3/5 Licensing Project Manager, K. W. Cook at (206) 482-4428, Ext.

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Very truly yours, 4

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Director, Nuclear Safety D. Smithpeter, BPA cc: ~ J. A.. Adams, PP&L.

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N. S. Reynolds,-D&L

• L. L. Wheeler, NRC

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g 2 3 bbl MEMORANDUM TO E. J.*Miraglia, Chief, Licensing Branch No. 3, NRR E. G. Adensam, Chief, Licensing Branch 'No. 4, NRR FROM:

R. T. Dodds, Chief, Reactor Project Section.2, Reactor Construction Branch

SUBJECT:

EXTENDED CONSTRUCTION DELAY AT WNP-4 AND WNP-5 DOCKET NOS. 50-513 AND 50-509 A meeting was held in Region V with representatives of the Washington Public Power-Supply' System on December 10, 1981 to review the licensee's plans for the extended construction delay ("mothballing") of the subject facilities.

IE Report Nos. 50-513/81-11 and 50-509/81-21 contain a sumary of the g

results of that meeting.

Enclosed is a copy of the licensee's management plan for mothballing the subject facilities.

The intent of the RV inspection program for _WNP-4/5 during the mothball period will be to assure that the licensee has established and implemented plans, instructions and procedures for the preservation and maintenance

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of ' equipment, materials, structures and records in a timely manner in

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conformance with the established QA program.

Our inspections will initially y

include the following:

Review Management Plan

' Review and evaluate list of equipment, materials, and structure's,

, including preservation requirements.

Also consider " minimum attention with risk" category items Evaluate program for segregation of " wasted" material when appropriate 4

Initially examine records retention prcgram and conduct inspections I,

thereafter of records of different organization / contractor's approximately quarterly Monthly tour of plants

> Quarterly inspection of stored materials quaterly review of maintenance and/or surveillance records i

' Semiannually review results of licensee's QA audits f

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N l c 4l n.

. DEC 2 31981 r

I Once we have gained some confidence in the licensee's program, then we will ~ reevaluate.our planned inspection program.

Irrega rdless,. the Senior Resident Inspector will probably tour some area (plant or storage facilities) monthly.-

If you have any questions on our activities for these projects, you may contact me at 463-3720.

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R. T. Dodds, Chief Reactor Project Section 2 cc w/ enclosure:

R. W. Hernan, NRR L. L. Wheeler, NRR cc w/o enclosure:

B. H. Faulkenberry 4

.I F

MANAGEMENT. PLAN FOR EXTENDED CONSTRUCTION DELAY OF WNP-4/5 OCTOBER 14, 1981 (Revision Package, dated October 27, 1981, Included) c'D' /h(20

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CONTENTS 1.0 0VERVIEW 1

2.0 FINANCIAL 4

3.0 LICENSE MAINTENANCE 9

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4.0 ENGINEERING CONSIDERATIONS 13 5.0 QUALI-TY CONSIDERATIONS 17 6.0 DOCUMENTATION AND RECORDS 19 7.0 COMMERCIAL ACTIONS 23 8.0 PROGRAMMATIC ACTIONS 28 9.0 REQUIRED ACTIONS 29 10.0 MANAGEMENT OF THE EXTENDED CONSTRUCTION DELAY 33 APPENDIX A--BOARD OF DIRECTORS' RESOLUTION No. 1187 AND RESOLUTION No. 1198 APPENDIX B--

WNP-4 and 5 FY-1982 AND 1983 BASELINE BUDGET AND CASH FLOW PREPARATION CRITERIA PHASE I AND II m

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November 6, 1981 MANAGEMENT PLAN FOR EXTENDED CONSTRUCTION DELAY OF WNP-4/5 1.0 OVERVIEW l.l.

INTRODUCTION This Management Plan is a description of the general policy and guidelines to be followed in bringing the WNP-4/5 Projects to an extended construction delay status.

The Supply System'will use this plan as the basis for all management direction with respect to efforts on Projects 4 and 5.*

The extended construction delay status is to be executed within severely limited funding constraint's while preserving the assets of the Projects for a two-year period.

The term comonly used,to describe this extended construction delay is " mothball."

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1.2 REASONS FOR THE DELAY Because of the severe problems in financing the construction of Units 4 and 5 in parallel with the other three Supply System Projects, the Governors of Washington and Oregon appointed a special Blue Ribbon Phnel of senior businessmen to evaluate the situation and provide their recomendations.

The recomended action, on September 18, 1981, was to place WNP-4 and 5 in a minimum cost status while preserving the assets for a period of at least two years beginning July 1, 1981.

The Participants Comittee representing the 88 participants in WNP-4/5 approved a

resolution on September 24,

1981, supporting these recomendations.

The Supply System Board - of Directors directed implementation of those recomendations on September 25, 1981, in Resolution No.1187 (See Appendix A) and further directed preparation of an amended construction budget for fiscal. years 1982 and 1983 reflecting the same.

• It is anticipated that an oversight role will be provided by the Participants

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Comittee,100's and DSI's. This plan will be amended at that time to reflect tneir role.

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October 14, 1981 1.3 CHANGES TO THE PLAN Changes to,this plan will require approval of the Managing Director.

1.4 FUNDAMEllTAL PP.INCIPLES GOVERNING 11NP-4/5 EXTENDED CONSTRUCTION DELAY

-1.4.1 Initia tion-The delay is to be initiated immediately and is to be based primarily on absolute m,inimization of all costs between now and July 1983.

l.4.2

!!aintenance of Assets The plant assets are to be maintained. This will include:

conducting preventive maintenance of critical equipment o

conducting minimum activities necessary to preserve the licenses o

maintaining sufficient and accurate documentation.on all quality, safety, o

and code-related materials and installations o maintaining insurance coverage.

1.4.3 Supply System Transformation ihnagement actions will be taken to transfona the Supply System and i ts contractors into an efficient / effective organization building three plants, not five.

2 I

October l'4,1981 r

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1.4.4 Lead Unit Impacts

'thnagem'ent actions will be designed to minimize the impact on Units 1 and 3 cost and schedule.

1.5 MA!!AGEMET PRItJCIPLES The' ma'nagement of the extended construction delay will be conducted by line ~ management. A task force has been assigned to assist in managing the efforts described jn this plan. The functions of the task. force are given in Section 10.of this report. In managing the delay, maximum utilization will be made of existing procedures, reports and systems. 9 e a G l I l l l 3 f., ( D g

., v mese 2.0 FINANCIAL ( 2.1 GENERAL It is emphasized that funding of the WNP-4/5 mothballing will be a not to exceed amount for the period July 1,1981 through June'30,1983. At the present time, agreement has not been reached concerning the availability and specific timi,ng of certain funding. A preliminary financial baseline for the math, balling period is shown in Table 1. Table 2 summarizes by ^ major budget line item the preliminary estimated cash requirements. 2.2 BUDGET kf4D CASH FLOW REQUIREMENTS The construction delay on WNP-4 and 5 necessitates an amended 1982 construction budget for all five projects. Amended 1982 construction budgets and related cash flows for WNP-1, 2 and 3, and the WNP-4/5 FY-1982 and 1983 baseline budget and cash flow as outlined in Appendix B r are to be prepared and submitted for action by the Board of Directors in \\ January 1982. 2.3 GENERAL BUDGET GUIDANCE 2.3.1 Scope The scope of the mid-year review will include the following for all five projects: o all~ budget line items revised estimate at completion, based on actual cost through September o 1981 and estimate to completion for WNP-1, 2 and 3. 4 _e

October 14, 1981 - !i .f -f- !_ u n n. i$e r[i '^8u ' - in ; i FINANCIAL BASELINE ($ in Millions) Beginning Balance (Cash on Hand 7/1/81) $ 59 Revenues Trans'fer of fuel assets (Actual 8/81) $ 61 Cost-sharing adjustment S-Reinvdstment income 105 PP&L ownership share of WNP-5 23 Regional participation 150 Total Revenues 344 Cash Recuirements WNP-4 Actuals.7/1/81 - 9/27/81 5 69 Estimated 9/28/81 - 6/30/83 109 Total $178 WNP-5 Actuals 7/1/81 - 9/27/81 $ 66 Estimated 9/28/81 - 6/30/83. 159 Total $225 WNP-4 and 5 Actuals 7/1/81 - 9/27/81 $135 Estimated 9/28/81 6/30/83 268 Total 403 Ending Balance (Cash on Hand 7/1/83) _5

• 5 i

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N October 14, 19t i TABLE 2. WNP-4/5 CASH REQUIREMENTS

• 7/1/81 - 6/30/63

($inHillions,lastworkingday.ofthemonth) f ~ WNP-4 WNP-5 WNP-4/5 Actual Es timated Actual Estimated Actual Estimated 7/81-9/81 9/81-6/83 Total 7/81-9/81 9/81-6/83 Total 7/81-9/81 9/81-6/03 Total Constr. Contracts $44.4 $ 59.8 $104.2 $ 37.0 $52.1 $ 89.1 $81.4 $111.9 $193.3 Prepurchased Equip. 7.6 7.0 14.6 17.5 67.2 84.7 25.1 74.2 99.3 Arch itect-Engineer 6.0 4.0 10.0 3.5 9.8 13.3 9.5 13.8 23.3 Constr. Manager 5.9 2.9 8.8 2.6. 4.6 7.2 8.5 7.5 16.0 Owner's AgG 4.7 3.3 8.0 3.7 4.4 8.1 8.4 7.7 16.1 Dwier's Constr. .3 4.0 4.3 1.3 1.0 2.3 16 5.0 6.6 Subtotal $68.9 $ 81.0 $149.9 $65.6 $139.1 $204.7 $134.5 $220.1 $354.6 Nuclear Fuel .2 $ 27.5 $ 27.7 .7 $ 20.0 $ 20.7 .9 $ 47.5 $ 48.4 TOTAL $69.1 $108.5 $177.6* $66.3 $159.1 $225.4* $135.4 $267.6 $403.0* 'Not to exceed amount. Fr1 p _., 6 2,n.3 beimam. dad. D aa,..< ' em 3G e

.ovemocr29, 19w3 o associated cash flow forecasts ( o for WNP-4 and 5.only, special emphasis must be given to the cost estimates and related cash flow forecasts for fiscal years 1982 and 1983 based on slowdown / mothball directives. Specific preparation criteria for this is provided in Appendix B. o For WNP-1 and 3 only, the amended 1982 construction budget estimates shall assume that WNP-1 and 3 are single units and require identification of costs that would shift to the twin-unit (4/5).if restarted on July 1, ~ 1983 consistent with the principle of equity, i.e., " cost allocated on the basis of proportion of respective benefit." 2.3.2 Resoonsibilities . Responsibilities for preparation, review and approval of revised estimates remain the same as defined for the 1982 budget. 2.3.3 General Guidelines g \\ The overall estimating approach to be used for the mid-year budget review is from the standpoint of " variance" from the l'982 budget. Focus should be directed to impacts that have occurred subsequent to preparation of the 1982 budget. For example: o Impacts resulting from the extended construction delay on UNP-4 and 5. o Changes authorized through Change Management actici... These would not impact the bottom line of the budget, but would involve transfers from contingency to other budget line items (or vice versa). Impacts resulting from irplementation of Amendment No.1 to " Policy o Statement on Equitable Cost Sharing for Twin-Unit WPPSS Projects." Such impacts are to be uniquely identified in the budget with actual costs incurred during the extended construction delay being recorded as contingency assets or liabilities, as appropriate. 7

..v-Major estimating assumptions to be used are as follows: [ For the purpose of estimating WNP-1 and 3 cost that would shift to the o twin units (4/5) if restarted, assume that the construction restart notification will be given on July 1,1983 for WNP-4 and 5 without any advance' notice. o Cost-sharing allocations will be made as specified in the Amendment No. 1 to " Equitable Cost Sharing for Twin-Unit WPPSS Projects." o Assumptions for inflation are to remain the same as those used in the 1982 budget. The'1982 budget will continue to be the baseline for performance measurement on WNP-1, 2 and 3. The revised estimate and related cash flows for fiscal . years 1982 and 1983 for WNP-4 and 5 will become the new baseline for these proj ects. '4 Required Action A list of specific required actions is given in Section 9.2. 1 - 8 ( S k'

October 14, 1981 f 3.0 LICENSE MAINTENANCE 3.1 OESC'RIPTION OF LICENSES 3.1.1 License Requirements The Supply System currently possesses NP.C construction permits for both WNP-4 and WNP-5. NRC regulations do not require that any phase of construction of a total project be comp.leted on a specific schedule. The only requirement relating' to construction schedule is that construction be completed by the latest completion date specified in the construction permit. The latest completion date may be extended by the NRC for " good cause." (42 USC, 2235; 10CFR50.55) 3.1.2 License Extensions It has been common for NRC licensees to seek construction permit amendments to extend latest completion dates. Such amendments are u'sually granted routinely. " Good cause" for such amendments can be demonstrated by factors beyond the licensee's control such as labor difficulties, changing regulatory requirements, and adverse economic conditions. 3.1.3 WNP-4/5 License Status .. = A request to extend the latest completion date on the WNP-4 permit to June 1,

1987, was submitted recently to the NRC.

Under NRC Regulations, the construction permit will remain in effect pending NRC action on the request (10CFR2.109). The latest completion date specified in the WNP-5 permit is July 1, 1986. 9 e

October. 14,'1981 1 3.1.4 WNP-4/5 License Extensions While the NRC Staff has the authority to require' licensees to "show cause" why permits should not be modified, suspended or revoked in view of significant new information (see 10CFR2.202), the issuance of a "show cause" order solely because construction on WNP-4 and WNP-5 is interrupted is considered to be unlikely, particularly in view of the state of ccmpletion of the projects and the likelihood of eventual resumption of construction and project completion. Based oh precedents where other utilities have deferred construction (e.g., Duke Power deferral of Cherokee Unit 1, 2 and 3), it is expected that the NRC Staff wi-ll view the infonnation regarding a deferral of construction on WNP-4 and WNP-5. primarily.as it relates to their own resource needs and review priorities. 3.1.5 NRC Overview ~of Delay The NRC Inspection and Enforcement staff will have a most direct interest in the plans for, and activities associated with, preservation,of the facility records and hardware. It will be important to consider their concerns when formulating our plans for deferral of WNP-4 and WNP-5 construction and to keep them closely informed of our activities. 3.1.6 Site Certification Agreements The " licenses" issued by the Wa'sington Energy Facility Site Evaluation ' Council (EFSEC), known as the Site Certification Agreements, do not specify dates for completion of construction. Consequently,- many of the points and activities discussed above vis-a-vis the NRC are not applicable. However, in early October, EFSEC did express an interest in a full briefing on the impact of the decision to defer WNP-4 and WNP-5 with an eye to possibly changing the 10 e 9 8 g,,

e October 14, 1981 (( various permits and licenses issued by the State or to changing EFSEC-required programs and activities. Changes anticipated would make permits and activities more reflective of reduced construction / operation activities and of the possibly extended construction period. During October, Supply System staff will be analyzing the pertinent permits and' programs to form the basis for Supply System proposals for appropriate changes or reductions. 3.2 -4CTION PLAN FOR PRESERVING THE WNP-4/5 LICENSES 3.2.1 Notifications Informal notification of NRC management and staff was accomplished almost immediately upon completion of the Governors' Panel Report. Mr. R.H. Engelken, Director of NRC Inspection & Enforcement, Region V, was informed by Mr. R.L.

Ferguson, Supply System Managing

Director, in a meeting on September 17, 1981.

Mr. Harold

Denton, Director of Nuclear Reactor Regulations (NRR), was informed by Dr. G.D. Bouchey, Deputy Director of Safety

& Security, in a meeting on September 24, 1981. In addition, various NRC inspectors have been informed of the situation at WNP-4 a'nd WNP-5 on a continuous basis. Formal notification of both the NRC Staff (Bethesda) and Inspection and Enforcement (Region V) of the Supply System action regarding deferral of WNP-4 and WNP-5 construction was accomplished by a letter to the Director, NRR, with copy distribiltTon to the Director of Inspection and Enforcement, Region V., No other formal submittals are considered necessary at this time to maintain the WNP-4 and WNP-5 construction permits or to satisfy normal practices of keeping the NRC informed of significant activities. The IFSEC was notified of the construction interruption by a letter dated Octob r 5, 1981. 11 l e O

November 6, 1981 ( 3.2.2 Licensing Applications Our current plan is to file applications for operating licenses for WNP-1/4 in December 1981 and for WNP-3/5 in April 1982. In reviewing these plans in view of the WNP-4/5

deferral, it is concluded that the operating license applications in both cases should be submitted as originally planned.

This approach conserves manpower resources for both the Supply System and the NRC, results in no added cost for the WNP-4/5 Projects, and minimizes the necessity for public hearing on Projects 4 and 5 if construction is resumed and the plants are completed. There is no filing fee for the operating licenses applications; thus, this action would represent no additional cost to WNP-4/5. A final consideration is whether.or not to request a further extension of the latest completion date on the pending WNP-4 construction permit or on the WNP-5 construction permit. The pending WNP-4 amendment application requests a latest completion date of June 1,1987. It has been concluded that the NRC should be allowed to process the pending application as submitted. After the construction delay period, the need for another extension of, the latest completion date will be re-evaluated. Similarly, no action is considered necessary at this time to extend the latest completion date for WNP-5. This matter will be addressed at a later date. .. = 3.2.3 Required A:: tion A list of specific required actions is given in Section 9.2. 12 e l e L v

October 14, 1981 4.0 ENGINEERING CONSIDERATIONS s Engineering guidance on activities to be conducted for the preservation of the assets in WNP-4/5 is provided in this section. Final determinations are to be made by the Program Directors in consultation with the Technical Director. Engineering planning and consideraticns for entering an extended construction delay range from complete preservation and completion of all necessary func.tjons to' simply walking off and leaving.the work as is. The degree of preserv'ation work is primarily a function of economics at the time of implementation. As a minimum, safety, code or quality requirements will in themselves demand a certain level of preservation activity. Using economics as a basis, four classes of equipment / materials / structures can be defined: o that which will be preserved at all costs that which will receive minimal attention and is assumed at a risk to be o suitable for service later ,r. o that which can be sold or used elsewhere o that which is simply left as is. ~ The equipment / structure / materials that are encompassed by.each of these classes can only be determined by an' item by item evaluation by technically knowledgeable persons, with final decisions made by the Directors responsible for managing the extended construction delay within a defined funding level. 4.1 EQUIPMENT TO BE PRESERVED AT ALL COSTS For that equipment / material / structures required to be preserved, the following considerations must be evaluated: 1 o Preservation and storage should be in accordance with manufacturer's recommendations, applicable design requirements and/or ANSI N45.2.2. 13 i

l ( October 14, 1981 {- o Complete surveillance and record keeping functions must be maintained throughout the mothballing period. The condition of the equipment must periodically be verified and all protective measures maintained intact. Jan All records including drawings, purchasing / manufacturing documents, code o data reports or partial code data reports, qualification documentation, construction deficiency reports and any other applicable documents must , be completed to the extent possible and must be properly filed with the responsible party. Construction drawing revisions, completed engineering directives and an o accurate status. record of work completed must be identified and filed with the responsible party. 0 Concrete coating systems that are partially installed should be considered for completion, o Unit 5 exposed rebar and structural steel which must be. preserved shculd be sandblasted and coated with two coats of zinc-rich paint. Loose rebar should be stored in laydown area under cover. Unit 4 exposed rebar and structural steel should be left as is with sandblasting prior to usage, if required. If more economic than sandblasting and coating, concrete encasement should be completed. 4.2 MINIMUM ATTENTION WITH RISK For equipment / material / structures determined to require minimum attention, the followino considerations must be evaluated: o Preservation and storage should be in accordance with manufacturer's recomendations, applicable design requirements, and/or ANSI N45.2.2. However, these requirements may be modified based on the degree of exposure for a particular piece of equipment. 14 e j

v October 14, 1981 [ Minimal surveillance should be established to assure protective measures o s. remain adequate,.i.e., heaters operable, covers intact, etc. All. records, including drawings, purchasing / manufacturing documents, code o data reports or partial code data reports, qualification documentation and any other applicable documents must be completed to the extent possible and filed with the responsible party. o Cohstruction drawings, revisionr and completed engineering directives should be identified and filed with the responsible party when practical. 4.3 ALTERNATE USAGE When cost effective, an attempt should be made to sell, trade or use the excess material / equipment in accordance with appropriate business practices. Engineering should identify those items which may be disposed of. 4.4 LEFT AS IS Those items identified as more costly to maintain for the mothballing period than to replace should receive no attention. Those' items that cannot be used elsewhere and have a specified shelf-life of insufficient length to warrant preservation, should receive no attention. Alternatively, items in this category might be sold as scrap. 4.5 ECONOMIC CONSIDERATION Preservation of certain specialty, nonsafety-related items should be given ~ ~ close consideration. Examples of high-dollar specialty items are the turbine and generator. 15 m,

1. October 14, 1981 = 1 4.6 REQUIRED ACTION The Program Directors, in consultation with t'h e Technical Director, shall define al'1 equipment / structures / materials to be preserved given the economic considerations discussed in this plan. These items are to be identified by October 23 so that specific commercial direction may be given to appropriate construction contractors and equipment vendors. j Nonconformances relating to hardware, structures, and documentation should be dispositioned and verified. (If nonconformances can be closed out at the contractors expense, they should be closed out.) At a minimum, unresolved nonconformances should be recorded and their status noted for future action. e a e o 6 16 e \\

~ October 27, 1981 e 5.0 QUALITY CONSIDERATIONS Planning for the WNP-4/5 extended construction delay must address Quality Assurance program considerations that are necessary to preserve licenses and permits and to protect plant equipment and facilities so as not to preclude a resumption of construction after the delay. 5.1 REGULA' TORY REQUIREMENTS The regulato,ry requirements that must be met to preserve the assets in Projects 4 and 5 are given in the following subsections. 5.1.1 Quality Assurance Procram The Desi~gn and Construction Quality Assurance Program must be continued and modified as necessary to cover the extended construction delay. 5.1.2 Preservation and Storage Requirements. ~ As discussed in Section 4, Engineering Considerations, equipment rece_ived and in storage should be maintained in accordance with manufacturer's recomendations and/or applicable design requirements and standards, or approved alternatives. Implementation of the preventive maintenance program shall be verified by Quality Assurance through site surveillances. ~ 5.1.3 Procedures / Instructions Surveillance procedures shall be required to verify that the q'uality of materials, components and structures (including partially completed structures) will be adequately preserved during the period of suspended construction. 17 4

~ October 14, 1981 5.1.4 Records Documentation ~for work performed, including r$aintenance and qualification records, 'must be reviewed, accepted, maintained, and stored in a permanent l record storage facility to which the Supply System'has assured access. The status of construction tests and inspections performed prior to suspension of work, must also be documented, reviewed and stored in a' permanent records facility accessible by the Owner. 5.1.5 American Society of Mechanical Enaineers (ASME) Contractors who have performed but not completed ASME Code work should prepare a partial data report and have it signed by their Authorized Nuclear Inspector. The report should' describe exactly what work has been performed. Also, all quality assurance documentation should be turned over for review and acceptance prior to contractor demobilization. Preservation and storage requirements should be established and implemented for ASME material being stored. Also, materials / items being stored should be well identified with identification tags that will withstand the environmental j conditions where placed. 5.2 REOUIRED ACTION The WNP-4/5 Program Directors are responsible for ' developing the specific implementation plan to meet these requirements. These p'ans are to be defined, documented and a copy provided to Corporate Quality Assurance by October 30, 1981, in order to meet the commitment to brief the NRC on November 18, 1981. 18 7 s 9 6 W

i Octo'ber 14, 1981 6.0 DOCUMENTATION AND RECORDS This section describes the requirements for records and documents needed to preserve the assets of WNP-4/5. Records / documentation are a necessary part of the total construction effort. Insurance of proper documentation must be accomplished at minimum cost. 6.1_PRESENT' STATUS OF DOCUMENTATION--WNP-4 The status of records for WNP-4 is as follows: Engineering / Design records are in UE & C custody. o QA Class I construction records are in Bechtel and contractor custody. o ASME Division 2 construction records are in UE & C and contractor custody. o Quality Class II and G construction records are in contractor custody. o o QA Class I eouipment vendor records are in Bechtel and prepurchased equipment contractor custody. Class II and G equipment vendor records are in Bechtel or prepurchased o equipment contractor custody. o Supply System contractors records are in Supply System custody '(fuel racks, security system, spare parts, simulator, etc.). Supply System-generated records are in Supply System custody. o 19 s o %+ t

o October 14, 1981 \\ 6.2 PRESENT STATUS OF ' DCUMENTATION--WNP-5 J l The status of the records for WNP-5 is as follows: o Engineering / Design records are in Ebasco custody. o QA Class I construction records are in Ebasco and contractor custody. o ~ Class II and G construction records are in contractor custody, o o QA Class I equipment vendor records are' in Ebasco and prepurchased equipment contractor custody. Class II and G equipment vendor records are in contractor custody. o o Supply System contractors' records are in Supply System custody (fuel racks, security system, simulator, spare parts, etc.). Supply System-generated records are in Supply System custody. o 6.3 RECOROS REQUIREMENTS In order to preserve the assets of the projects, all records must be retained as described in the following subsections. 6.3.1 Architect / Engineer and Construction Manager The AE and/or CM shall retain all quality records currently in his custody, and should obtain custody of those quality records in the custody of the contractors. The guiding philosophy shall be that the AE or CM have custody of the records rather than the contractor. 20 i e a e D -

October 14, 1981 6.3.2 Supply System The Supply System should retain all quality records currently in,our custody for those contracts administered within the Supply System (e.g., fuel racks, security system, etc.): In addition, the Supply System should obtain custody of those quality records that pertain solely to WNP-4/5 for contracts administered by the Supply System. 6.3.3 Contractors As discussed above, most contractors should present their records to the AE or CM as determined by the Program Director. However, for selected contractors (for example, the NSSS contractor) where the contractor has not yet turned over quality records to the AE/CM or the Supply System, the Program Director may elect to leave those records in the custody of the contractor. In this case, the contractor shall provide a list of those records required to support his work and shall describe how and where the records will be stored. The Supply System will verify the adequacy of those records by audit / surveillance. 6.3.4 All Other Records All other records not currently in the possession of the AE/CM/ Supply System that can be obtained at no additional cost should be obtained. Other records should be obtained only for components that are not accessible due to construction (e.g., embeded piping, undarground piping or electrical work, etc.). In this case, marked-up drawings and records are adequate. 6.4 RECORDS GENERATED DURING CONSTRUCTION DELAY Records generated during the extended construction delay should be retained as follows: o Preventive maintenance records shall be retained by the organization responsible for the maintenance. 21 4

October 14, 1981 s ( Records for equipment received during ti.e construction delay should be 0 retained by the CM organization. 6.5 REQUIRED ACTION A list of specific actions required is given in Section 9.2 h 4 e P b e e e 22 l I l I l m.-

5- / 1 October 27, 1981 / 7.0 COMMERCIAL ACTIONS 7.1 GlidRAL+ ~ 'The guidance.and requirements specified in this section are necessary to ~ - ensure" proper overall planning, support bddget formulation and cash flow _ forecasting and ' control. The total effort will require some time to complete. However, iI.is emphasized that the 4/5 Program. Directors and the Director of Business Programs are to implement immediately those contractual actions that reduce the continuing commitment of funds to a minimum. Attention should be 1, -. given to the, largest dollar impacts. ' 7.2 SPECIFIC ACTIONS 7.2.1. Prepurchase The Projects are to suspend all WNP-4/5-work on all contracts except for those contracts.4bere the Project is reasonably certain that such suspension.will result in greater near-term costs than continuance of)<ork. The WXP-4/5 Program,0irectors and Director of Business Programs shall review all contracts and develop their initial plan for resolving each contract by October 28, 1981. A copy of this plan will be provided to the task force. Data shall reflect the following: o Priority ~ listing of ; contracts based on estimate' of potential costs. Imediate evaluations are to be conducted on large dollar-value exposure contracts. ~ p. J gru 23 i. 1 e e n.. r. I

ci, October 14, 1981 t ( o Intended ' Action-- a. , Suspension of WNP-4/5 work b. Termination of WNP-4/5 work c. Partial suspenrion of WNP-4/5.vork d. Continue wo'rk to completion '~ o 40phdera! ion of disposing -of equipment, material on hand' or raw materials.in vendors' shops. Such disposal must recognize' existing bond covenants; additional guidance on this will be provided. ~ Minimization of impact on WKP-1/3 as a result of the WNP-4/5 actions. o ' 'o Consideration of engineering qualit'y and documentation requirements. \\ Estimated cost / cash flows for WNP-4/5 by specific contrac't for October, o November and December 1981. <o Estimate of cost / cash. impact on WNP-l/3 as a. resuTt of the WNP-4/5 , actions recommended. Cost / cash impact to be followed by contract for October,llovember and. December 1981. o r / i The Procram Directors cnd,' Director,of Busines... Programs-shall prepare s individual contract negotiation plans as required to support theirL comercial action plan'. Based cn these negotialbon' plans, the projected, cost / cash flow'~ should be reviswed and adjusted. An overall negotiation schsdule should also be prepared, based on the pr'iorities establistiad above, by November 13, 1931. Negotiation ~s shculd begin in accordance with this schadule. Upon compietion ~ of individual negotia.tions, thr. cost / cash flow projects should be adjusted; if necessary,f and the task force should be advised of any changes. Necessary contractual-docunents should be executed in accordance with established commercial procedures.' 24 - t 4 a i f f b .~ h y

,i, October 14, 1981 '( 7.2.2 _ Construction t ' [ The action plans for construction are the same as for prepurchase, recognizing that some*of the actions have already taken place. 7.2.3 Headouarters Contracting Activities Service and prepurchase contracts that support, or are funded by WNP-4/5, and are man' aged by Headquarters will be given the same scrutiny and reports s / provided thereon as in the case of prepurchase contracts. This will be accompli'shed by the Director of Business Programs' who will coordinate actions with the others for whom the contracting services are being provided. 7.3 N'UCLEAR FUEL The nuclear fuel contracts are under the technical control of the Technical Director. The following actions are to be taken. 7.3.1 NSSS/ Fuel Initial core fuel is to be handled in the same manner as the NSSS portion of the contract. 7.3.2 Gardinier The contract with Gardinier is to be terminated. Termination costs are to be appropriately allocated between WNP-1, 4 and 5. 7.3.3 Western Nuclear Current plans are to purchase contractual comitments of uranium under the contract and immediately resell at the then-current market price. 25 e y h c m..

October 14, 1981 x .,(* 7.3.4 _ Department of Energy .Q Separative work is currently scheduled to be delivered to the Supply System for WNP-5 in September 1982. The Supply System',s initiatives to sell these services to other utilities are to be continued. 7.3.5 Kerr-McGee UF, Conversion Contract This contract involves conversion of UF supplied by Gardinier to UF

• 4 6

Termination of the Gardinier contract eliminates the need for this contract and it is therefore to be terminated. 7.3.6 Kerr-McGeeUgConversionContract No cash flow is expected to be incurred by WNP-4/5 over the 2-year period. Therefore, no action is to be 'taken. e 7.3.7 Reporting Responsibilities The Technical Director will continue close coordination of actions with the Managing Director and will advise the task force of any change's to pians and will provide reports as required. 7.4 ASSUMPTIONS For purposes of negotiations, the period of construction delay will end o on. July 1, 1983. i Courses of action (i.e., termination, suspension, partial suspension and o continuance of the work) taken on specific contracts will be based on goals provided in Deputy Managing Director's memo of October 2,1981. i l l 26 ).? O b g

/ October 14, 1981 I 1 o For purposes of cost / cash flows for construction contracts, the 4, cost-sharing formulas provided to the Projects during. the week ending October 2, 1981, will be utilized. 7.5 REQUIRED ACTION 1 Specific required actions are given in Section 9.2. e e 4 O G I a. t e I s i i 1 l 27 8 e 9 6-

October 14, 1981 4 (- 8.0 PROGRAMMATIC ACTIONS The Supply System is correnitted to becoming an efficient. organization designed to build three nuclear plants as opposeo to five. " This will require a number of programatic actions including streamlining organizations and improving the overall manual-to-nonmanual ratios on the projects. Several management initif tives have been implemented in recent weeks.' The Program Directors are also to continue to pursue similar actions with respect to architect engineers, the construction managers and the construction contractors. These types of management initiatives must be implement'ed to minimize the impact of the extended construction delay on Projects 1 and 3. In the same sense, all nongenerating facilities and other activities conducted by the Supply System not directly supporting the construction of Projects 1 and 3 should be evaluated for deferral, suspension, or elimination. Examples of such activities would be further Work on improvement of roads and interchanges, office

space, temporary construction facilities, temporary construction utilities, etc.

The appropriate Directors are to provide a brief listing of their intended further programmatic actions and timetables to the task force by October 30. e 1 28 lfk o

p. October 14, 1981

1. (,

9.0 REQUIRED ACTIONS ~ 9.1 ACTIONS TAKEN TO DATE The following actions have already been initiate'd and will be continued as necessary to implement the construction delay: ~ 2 o.Jnitiated: reductions in nonmanual workforce. o Provided initial guidance on comercial actions.' Subsequent direction was given on October 7, 1981. i, Developed necessary mid-year budget guidance to facilitate revision of o FY82 budget. o Initiated necessary early planning activities for the extended construction delay. o Initiated actions to reduce construction activities to an absolute minimum. Issued temporary suspension notices to vendors of prepurchased equipment; o detailed commercial guidance is to be developed. o Initated a review of all service agreements to evaluate possible .~eallocation of shared costs or imediate suspe,nsion of the contract if reallocation cannot be accomplished and there are no adverse impacts on quality, licensing or preservation of assets. 9.2 PLANNED ACTIONS A consolidated list of actions is contained in Table 3. The due dates and responsible individual (s) are also indicated. 29 ..= ~

TABLE 3. WNP-4/5 MOTHBALL REQUIRED ACTIONS & REPORTING ,.b-FINANCE REQUIREMENTS Required Report Item Responsibit4cy Date Issue general guidance Task Force 10/14/81 WNP-4/5 cash flow thru Program Directors 10/31/81 Dec. 31, 1981 WNP-1/4, 3/5, Hqtrs. Estimates it completion & Program Directors 12/14/81 cash flows complete WNP-1/4, 3/5, Hqtrs. (WNP-1, 2 and 3) WNP-4/5' cash flow thru 6/30/83, Board action of estimates Participants / Board 1/22/82 at completion and cash flow (all 5 projects) COMMERICAL REQUIREMENTS Develop recommended actions ' Program Directors 10/28/81 by contract WNP-1/4, 3/5, Hqtrs. Develop estimated cost / cash Program Directors 10/30/81 flows by contract thru WNP-1/4, 3/5, Hqtrs. Dec., 1981 Develop estimated cost / cash Program Directors 11/1 6/81 Impact on WNP-1/3 with WNP-1/4,3/5,Hqtrs. Breakdown by contract Based on contractual action. Program Directors 11/9/81 selected, issue additional WNP-1/4, 3/5, Hqtrs. direction to the con-tractors Prepare overall negotiations Program Directors 11/13/81 schedule WNP-1/4, 3/5, Hqtrs. 30 g,( 4 y ~. - - e

C a October 27, 1981 f s (Continued) COMMERCIdLREQUIREMENTS Required Report 4t'eNI Responsibility Date Complete all negotiation plans Program Directors 1/31/82 WNP-1/4, 3/5, Hqtrs. Prepare & execute contract Program Directors As required to main- .modjfications WNP-1/4, 3/S, Hqt.rs tain integrity of the financial baseline LICENSING REQUIREMENTS 1 Informal notification of NRC Licensing Complete c managementent Notification letter to EFSEC Licensing Complete Notification letter to NRR &. Licensing Complete NRC, Region V Assessment of need for modi-Licensing 10/30/81 fication to EFSEC permits Briefing of NRC, Region V, on Quality Assurance 11/18/81 plans for WNP-4/5 Con-struction deferral Briefing of EFSEC on WNP-4/5 Licensing 11/15/81 construction deferral Submittal of WNP-1/4 OL Licensing 12/81 application Submittal of WNP-3/5 OL Licensing 4/82 application G 1 31 g

e-October 27, 1981 (Continued) ENGINEERING REQUIREMENTS Required Report item Responsibility Date Define all equipment / structures / Program Directors 12/14/81 materials to be preserved WNP-1/4, 3/5, Hgtrs. ~ QUALITY ASSURANCE REQUIREMENTS Develop specific actions with Program Directors 10/30/81 an implementation plan WNP-1/4, 3/5, Hqtrs. to meet the referenced requirements DOCUMENTATION AND RECORDS REQUIREMENTS ' Identify all records-related Program Directors As needed for actions which may have WNP-1/4, 3/5, Hqtrs. negotiations commercial impact Identify location & status of Program Directors As needed for all relevant records WNP-1/4, 3/5, Hqtrs. negotiations s. PROGRAMMATIC REQUIREMENTS Evaluate &' identify all non-Program Directors 10/30/81 generating facilities & WNP-1/4, 3/5, Hqtrs. other activities to be deferred, sus-pended or eleminated. 9 32 e 6 M g.

October 14, 1981 ( 10.0 MANAGEMENT OF THE EXTENDED CONSTRUCTION DELAY The principles for management of the construction delay are presented in Section 1.S and will be based primarily on implementation by line management with assistance and support by the task force. 10.1 LINE MANAGEMENT RESPONSIBILITIES Management of the extended construction delay is the direct responsibility of the line managers of the Supply System. Each Director will be responsible for accomplishino those activities within his rea of responsibility on the s defined schedule and within budget.- The integrity of the overall financial baselina defined in Section 2.0 must be maintained and is the collective responsibility of every director. 10.2 TASK FORCE RESPONSIBILITIES The task force is to provide assistance to line management in developing and implementing actions and 'is to provide a consolidated performance evaluation. The task force will report to the Deputy Managir.g Director on all matters related to the extended construction delay. The functions of the task force will be as follows: develop and publish a consolidated Monthly Performance Report o analyze impact of external influences on the ability to perform against o the defined baseline o identify any requirements or additional initiatives for executing the delay that may have been overlooked assist the Managing Director / Deputy in review of program actions against o the plan 33 4 9 g -.A.

October 14, 1981 assist line management where and when necessary in the implementation of o the extended construction delay review the experience of other nuclear utilities in extended delays on O their plants review Supply System performance on accomplishing required tasks o o review total expenditures versus baseline and funds availability to identify possible variance trends or overruns identify and analyze potential areas for further savings o update this plan as necessary. o 10.3 REPORTING GUIDELINES 10.3.1 Rolling Cash Flow Reports The Supply System is using a 12-week rolling cash flow forecast and variance reporting system to monitor cash flow during the construction delay. The 12-week rolling cash flow report will replace the current 8-week rolling cash flow report beginning November 2, 1981. The following information is to be

rovided weekly through June 30, 1983

o updated 12-week forecast explanations and reasons for variance of actuals o explanations and reasons of forecast revisions for the cormion periods for o both past forecast and the approved budget baseline; these variance and 34 ~ e 6

October 14, 198,1 .o .( revision e3planations will address, at the minimum for the variances or , whether the reason timing (if the variance is due to incorrect timing incorrect whenethe payment will occur and why should be includ d) , a revised estimate of e , or an omission, This information is to be submitted each Monday by 4:00 p.m. beginning November 2, 1981, to J. J. Read, Manager, Project Budget will_consolidite all data, provide summary analysis and Project Budgets following day. A sample of an 8-week forecast report results by the sample of a construction fund cash summary report is shown i is given in Table 4 and a n Table 5. ^ l 10.3.3 Responsibilities Required forecast inputs and related responsibiliti es are as follows: Item Construction Contracts Jn ut Responsibility Equipment Contraces R Cseh/RN Williams Architect-Engineer DR Cseh/RN Williams Construction Management R Cseh/RN Williams Owners A&G DR Cseh/RN Williams Owners Construction Cost ave Nuclear' Fuel, MJ Simmons Reinvestment Income UOIIY KJ Kreamer p i I 35 S l W

TAntF 4. WA5111tiGT0li PUDLIC POWER $UPPLY SYSTEll l'l-14-01 0-IIEEK ROLLiliG CA511 FLOW TORtCAST fluCLEAR PROJECTS 1105. 4 Alla _5 ($ in Thousands) SEPTEft1ER OC100 tit it0VEMDER I WE 9/13 'WE 9/20

• WE 9/27
• WE 10/4 14E 10/11 WE 10/la b>E 10/25WE II/l WE II/O kkitil/15 WE 11/22 WE 11/29 ueginning Dalance

$60,041 $51,044 143,400 $29,364 $25,035 110,713 $18,517 $10,002 } 1 66_1 $(2,465) F (4.770) $(13,559) 1, Receipts . P! "'T Wir.ns fer 6 'S Interest Iransfer 167 122 477 78 55 5.426 31 lu 1.957 Private Owner 094 208 671 209 342 422 457_ 049 367 ,, M 425 330 Total Receipts }__1,061 410 $ l.140 207 [ 397 - $ 5,1140 494 }, 067 UM 170 5 425 3 330 Olshursinnen t s " liUP~4 Construction 5 042 $ 3.522 $ 2.207 $ 1.377 923 966 500 500 600 500 $ 1.000 $ I.000 Equl nent 421 154 2.124 265 371 053 225 210 300 200 200 200 i AE/EH 1.100 2.470 960 2.713 000 2.660 Owners A&G & Constr. I,000 03 1.010 1,010 1.000 1.000 1.100 liuclear Fuel rinancin9 25 Total WilP-4 } 3,396 }_3,759 1 7.011 $ 1,642 $ 3,294 } 1 819 } 3 430 110 }_ ?_,700, [_ 100 }, 4.960 $ 1,200 WilP-5 ~~ E truction $ 3.006 $ 3.740 $ 4.104 365 964 $ 3.049 $ 2.469' $ l.439 $ 1.080 $ l.460 602 $ 1,800 Co Equlguent 2.508 420 1.407 239 1.212 1.099 1.266 1.706 913 90 472 1.100 AE/CH 222 54 . 1.309 9 000 000 207 800 473 2.361 225 60 36 5.066 15 225 2.300 400 Owners A&G & Constr. Blu 800 fluclear fuel 3 1 224 17 2 Financing _ 25 Total WilP-5 }. 7,4_b2_ }_ 4_M l,7,453 } 1 974 }J425 }, 4,,2,25 }_ _4,5 71_ }_0,,490 }_ 3_,6]O } 1 703 $ 4,2E } 3,300 Tutal Disbursements $10,858 $ 7,974 $15.264,$ 4.616 $ 6,719 }_6,044 }_9,009 $ 9,200 }, 6 @ $ 2,403 $ 9,214 $ 4,500 Inding Dalance W 044 $43,400 $29,364 j,2,5,0J5, $18,713 .}l0,5_17 $10,002, } l 661_ 1(M65) l[4,f]Q) (()),$13) $ 1_,J23J 2

• Actuals "Desed on existin9 cost sharing 9uldelines and methods.

G n I9

x TABl ~ WASilillGT0fl PUBLIC POWER SUPPLY,SYSTEll 10*14-81 C0flSTRUCTI0tl FullD CASil SUMitARY llVCLEAR PROJECTS 1105. 4 AllD 5 WEEK EllDitlG 10/4/81 ($ in Thousands) s ACTUAL FORECAST VARIAllCE VARIANCE EXPLANAT10ti' Beginning Balance $29,364 $29,364

I Receipts Interest income 78 75 3

Private Owner 209 295 (86) 'f Total Receipts 287 370 $ (83) Disbursements WilP-4 Construction $ 1,377 $ 1,377 , Equipment 265 267 (2) AE/Cil w N Owners A&G & Constr. fluclear fuel Financing Total WtlP-4 $ 1,642 $ 1,644 (2) . WilP-5 Construction 365 348 $ 17 Equipment - 239 239 AE/Cl4 2,361 2,361 Owners A&G A Constr. 9 9 Iluclear fuel l'inancing Total WilP-5 $ 2,974 $ 2,948 $ 26 Total Disbursements $ 4,616 $ 4,592 $ 24 Ending Dalance $25,035 $25,142 $(107)

V a. is ,4 APPENDIX A ~ ~., n BOARD OF DIRECTORS' RESOLUTION NO.1187 AND RESOLUTION NO. 1198 s. O e 4 .A

. APPENDIX A ,. q BOARD OF DIRECTORS 2 RESOLUTI0tlt10. 1187 ( 3 A'RESOLUTI0il DIRECTING THE mat:AGItiG DIRECTOR TO IMPLEMENT THE RECOPJ4ENDATIONS OF THE GOVERNORS' 4 pat 1EL AND THE PARTICIPAliTS' CCWIITTEE AND ~ FURTHER DIRECTING IMPLEMENTATION OF THE STEPS s + TO PRESERVE THE ASSETS OF WASINGTON PUBLIC POWER SUPPLY SYSTEM NUCLEAR PROJECTS 4 AND 5 6 7 The 11anaging Director reports that on September 18, 1981 the pan'el a created by the Governors of the states of Washington and Oregon to study 9 the economic consequences to the region of the alternatives hvailable 10 for Nuclear Projects Nos. 4 and 5 (the Projects) recomended that,the Project,s should not be terminated at this time but should by keot in a' preservation mode for two to two and one-half years to allow Bonneville 12 13 and the Regional Council to determine whether the Projects are needed in ~ 18 the region. Th.: canel further recomended that: (i) the public and 15 private utilities, including the Participants, together with the direct 16 service industrial customer (DSI's), should equitably share.in the 17 regional effort to preserve the Projects, which was estimated to require - is direct costs of approximatel.y $150 million -to S180 million and (ii) the 19 Participants should agree to pay 100% of the interest during construction 20 on the Projects, and 21 The Managing Director further reports that on September 24, 1981 the-22 Participants' Commitree adopted a resolution concur: ring in the recomend. 23 ations of the Governors' Panel and recomending that the Supply System ~ 2' imediately implement the steps required to preserve the assets of the 25' Projects until-June 30, 1983 at the least cost possible, and prepare and 28 propose for approval by the Board of Directors and the Participants' T 27 j Comittee an amended Construction Budget for Fiscal Years 1982 and 2s 1983 reflecting the same; NOW, THEREFORE, 29 IT IS RESOLVED that the Mana'ging' Director shall imediatelv implement s 3 the steps required to preserve. the assets of the Projects until June 30, 1983 31 ~

1 at the least cost possible, and prepare and propose for approval by the r, 2 Board of Directors and Participants' Comittee an amended Construction s 3 Budget for Fiscal Yqars 1982 and 1983 reflecting the.same. d ADOPTED by the Board of Directors of Washington Public Power Supply f System this 25th day of September,1981. 5 6 L) /, a President 9 ATTEST: 3o o I (Q Secretarf 13 14 ~ 15 16 17 18 19 20 21 22 APPROVED AS TO FORM Afl0 LEGALITY: 23 O m 25 g [ s Counsel 26 j 27 25 s 29 30 31 g

g 2, 2 3 BOARD 'OF DIRECTORS t A 4 RESOLUTION NO. 1198 I' 5 A RESOLUTION DELEGATING CERTAIN ,l RESPONSIBILITY AND AUTHORITY TO - ~45 ~ 'l 6' 'J THE MANAGING DIRECTOR WITH RESPECT i TO AN EXTENDED CONSTRUCTION DELAY OF 7 WASIIINGTON PUBLIC POWER SUPPLY SYSTEM NUCLEAR PROJECTS NOS. 4 AND 5 8

• j 9

The Supply System, the Participants in Nuclear Projects 10 Nos. 4 and 5, the co-owner of Nuclear Project No. 5, certain i Envestor-owned utilities and certain industrial customers o 33 BDnneville Power Administration have agreed'upon the basic 12 s elements of a plan for an extended construction delay for j3 34 Nuclear Projects Nos. 4 and 5; and 15 It.is nec,essary and desirable that the extended con-l 4 16 struction delay be implemented in a timely and efficient 37 manner; and 33 The Board of Directors is authorized by statute to delegate to the Managing Director such authority as the 39 20 Board shall determine; NOW, THEREFORE, 21 IT IS RESOLVED: 1 1. The Managing Director is authorized and directed 22 i 23 to implement an extended construction delay of Nuclear i j 24 Pr ects Nos. 4 and 5 until June 30, 1983 for the 25 purp se of preserving the Projects as a potential 26 r ni nnl en rgy r source at the least possible cost. I i i 1 27 23

a

? a -- _

~ o (a) The authority to exercise all contractual rights 2 of the Supply System pursuant to contracts with 3 construction contractors, suppliers, architects and construction managers, including without 4 5 limitation the authority.to execute changes 6 deleting work and to terminate. contracts within 7~ provisions, and 8 (b) The authority to negotiate and execute changes 9 in any and all such contracts. 10 2. The Managing Director is authorized and directed 11 to develop, together with other interested parties j2 and groups,' including the Participants in Projects 13 Nos. 1, 3, 4 and 5, the co-owners of Projects Nos. 3 j4 and 5, Bonneville Power Administration, the Partici-15 pdnts' Committee, the Participants' Review Board, the 16 Owners' Committee and the industrial customers of 17 B nneville Power Administration, an efficient adminis-18 trative procedure,to obtain such concurrence as may be 19 necessary or advisable in actions which he proposes to 20 take for the purpose of implementing the extended 21 construction delay of Nuclear Projects Nos. 4 and 5. 3. This authorization and delegation of authority 22 will be subject to contractual arrangements to be 23 ntered into pursuant to the Memorandum of Under-24 standing dated October 14, 1981 providing for over-sight by the participants, direct service industries 26 4 I and investor-owned utilities. 23 1 .i ~l 29 ,n

1 4. Policy direction in the implementation of this 2 resolution shall be transferred to the Executive (~ 3 Board upon its formation in accordance with Chapter .s 4 3, Laws of 1981 (First Extraordinary Session). 5 5. The Managing Director is authorized to redelegate 6 his authority to his subordinates to the extent that 7 he deems advisable. g . ADOPTED by the Board of Directors of Washincton Public 9 tower Supply System this 23rd day of October, 1981. 10 11 v^ President 12 ATTEST: 13 14 ) S y** **Y ~ IS 16 17 - 18 19 . APPROVED AS TO FORM AND LEGALITY: 20 4 21 j Counsel / ~ g [ 23 24 25 a 26 27 28 29 30 g.,

o i i / i-1 l APPENDIX B l i I ~ ~ WNP-4 AND 5 i_ FY-1982 AND 1983 BASELINE BUDGET AND' CASH FLOW PREPARATION CRITERIA ~ PHASE I AND II 1 I i d 1 i -l I i OCTOBER 8, 1981 i h 1 l .S 1 = I 4 i y (% d e e i 1. . _ _I E, w, P -,I_ _ - _-..-__ _.- _ a ,.___...s--,,,_,-

..e WNP-4 AND 5 FY-1982 AND 1983 BASELINE BUDGET AND CASH FLOW PREPARATION CRITERIA (.. PHASE I AND II g, TABLE OF CONTENTS Pace I. INTRODUCTION 1 II. OBJECTIVE 1 ~ III. DEFINITIONS 1 IV. BUDGET SCHEDULE 1 ~ V., DIVISION OF RESPONSIBIt.ITY 2 VI. SCOPE DF BUDGET A. Prepurchased and Construction Contracts 2 B. AE, CM and A&G Cost 2 C. Owner Construction Cost 2 D. Nuclear Fuel Cost ' 2 E. Qualifications and Assumptions 3 VII. SPECIAL CONSIDERATIONS A. Cost Sharing 3 B. Contingency 3 C. Sales Tax 3 D. Escalation 3 E. Controlled Information 3 F. . Summarization G. Cost Flow and Cash Flow 3 3 ATTACHMENTi--#5efinitions ATTACHMENT 2 - Responsibilities ATTACHMENT 3 - Format ATTACHMENT 4 - Schedule October 8, 1981 Project Budgets h" g

WNP-4 AND 5 FY-1982 AND 1963 BASELINE BUDGET AND CASH FLOW PREPARATION CRITERIA - PHASE I AND II ( I. INTRODUCTION ? This.is the corporate criteria for preparation, review and approval of the FY-1982 and 1983 baseline budget for WNP-4 and 5. The baseline budget for each of the two nuclear power plant'mothballing cost will be prepared in two phases. Phase I will cover the time frame from July 1, 1981 through December 31, 1981. Phase II will cover from January 1,1982 through June 30, 1983. "Dits document is the instruction for both Phase I and Phase II and includes genersi guidelines for the following major segments of the budget: Prepurchased Equipment Contracts e e Construction Contracts e Architect-Engineer Services Construction Management Services e e Administrative and General Costs e Owner Construction Cost e Nuclear Fuel Contracts e Reinvestment Income II. OBJECTIVE An accurate assessment-of the projects' forecasted cost during the period of July 1,1981 through June 30, 1983. These projected costs will be the baseline budget.against which cost will be tracked and monitored in accordance with the " Tracking Plan for Monitoring Mothballing Cost Against Budget Baseline". It will also be the basis for cash planning to assure funding availability by the participating parties. III. DEFINITIONS _g Selected terms used in this instruction are defined in Attachment 1 of this instruction. IV. BUDGET SCHEDULE The milestone activities associated with the WNP-4 and 5 FY-1982 and 1983 baseline budget and cash flow preparation, review and approval are shown on. All dates indicated on Attachment 4 must be strictly adhered to. 1 1

WNP-4 and 5 FY-1982 and 1983 Baseline Budget and Cash Flow Preparation Criteria - Phase I and II Page 2 V. DIVISION OF RESPONSIBILITY Responsibilities for major baseline budgeting preparation and coordina-tion functions are defined on Attachment 2. VI. SCOPE OF BUDGET Phase I cash (July 1931 through December 1981) shall be submitted in the format and as a minimum the following is required: A. Prepurchase equipment contracts and construction contracts will be identified by contract number, contract description and . contractor's n'ame. Cost for each contract as a minimum require-ment shall be identified by the following (selected terms defined in Attachment 1): (1) Baseline Scope (Included in 1982 Budget Baseline) (a) Work Invoiced (b) Work Not Invoiced (c) Existing (Old) Claims (2) Mothballing Scope (Excluded from 1982 Budget Baseline and a Result of Mothballing) (a) Maintenance (b) Demobilization (c) Suspension (d) Termination B. Budgeted Architect-Engineer, Construction Management, Administrative and Gener'l costs will follow the guidelines as outlined in Amend-a ment No.1 to " Policy Statement on Equitable Cost Sharing for Twin-Unit WPPSS Projects" dated September 28, 1981. C. Owner Construction cost will be identified by contract number or item (i.e., spare parts would be the cost of'all spare part contracts and purchase orders), contract description and contractor. Cost for each category shall be ideatified (as a minimum) in the same detail as Section A above. D. Nuclear Fuel cost will be identified by contract number, contract description and contractor's name. Cost for each contract will be identified (as a minimum) by the following: (1) Baseline Scope (Included in 1982 Baseline Budget) (2) Mothballing Scope (Excluded from 1982 Baseline Budget and a Result of Mothballing) O e l

WNP-4 and 5 FY 1982 and 1983 Baseline Budget and Cash Flow Preparation November 6, 1981 Criteria - Phase I and II Page 3 S E. Qualifications and Assumptions - All major qualifications or assumptions that apply to the baseline budget are to be pocumented. A sufficient level of detail is necessary to provide a good basis for future changes to the budget. Phase II cash (January 1982 through June 1983) shall.be submitted (as a minimum) in the same detail and in a format similar to Attachment 3 for the 18-month period. VII. SPECIAL CONSIDERATIONS A. Cost sharing will be based on Amendment No. I to the " Policy Statement on Equitable Cost Sharing for Twin-Unit Projects" dated September 28, 1981. B. Contingency shall not be considered or provided for in the preparation of the WiS-4 and 5 FY-1982 and 1983 baseline budget and cash flow. C. Sales tax shall be considered, calculated and included in all cost for prepurchased equipment contracts, construction contracts, owner construction cost and nuclear fuel contracts. The tax rates are 5.2% for WNP-4 and 5.3% for WNP-5. . s. O. Escalation shall be considered, calculated and included in all cost for prepurchased equipment contracts, construction contracts, owner construction cost and nuclear fuel contracts. The escalation rates shall be calculated in accordance with the "1982 Project' Construction Budget Preparation Criteria - Phase I",, Section VII, Subsection E. E. The WNP-4 and 5 FY-1982 and 1983 baseline budget and cash flow shall be summarized by major budget segments (i.e., prepurchased equipment contracts, construction contracts, etc.) by month from July 1, 1981 through December 31, 1981 and January 1,1982 through June 30, 1983 fo'r Phase II. F. Cost flow detail must be developed initially by individual contracts on an incremental cost basis rather than a cash basis. Cost flow details for each contract shall be then converted to a " cash" basis and reported on Attachment 3. Actual cash from .luly 1, 1981 through September 27, 1981 may be a bottom lined per month for each contract scope (baseline scope and mothball scope) c and doesn't require the detail breakdown as identified in Section VI of this instruction. The base date for cash flow projections shall be September 27, 1981. G e e e.

~ ATTACHMENT 1 (Page 1 of 2) ~ DEFINITIONS l. .s A. BASELINE SCOPE (F'Y-1982 BASELINE BUDGET) l. W , ork Invoiced Includes all cost for work completed and invoiced including but not limited to direct manual labor cost, support or distributable manual labor cost, labor special cost, nonmanual labor cost, material cost, construction, equipment usage cost, overhead cost, escalation, sales taxes, etc. for any work, services, equipment or material (that is included in the FY-1982 baseline budget scope) that has been invoiced for payment by the Supply System. 2. Work Not Invoiced Includes all cost for work completed or future work,' as defined 'above in " work invoiced", for services, equipment or material (that is included in the FY-1982 baseline budget scope) that has been or will be performed in the future and that has not been invoiced for payment by the Supply System (i.e., final demobilization of completed contracts). 3. 01d C1 aims f. The projected cost settlement of all contractor identified claims and potential claims which have not yet been submitted by contractors (but are included in the FY-1982 baseline budget scope) exclusive of any claims relating to the construct. ion slowdown and/or the subsequent mothballing. B. MOTHBALLING SCOPE (NOT INCLUDED IN FY-1982 BASELINE BUDGET) 1. Maintenance Includes all cost for work associated with securing the in-place commodities, placing material and equipment into storage, monitoring i and securing the facilities, maintenance and preservation of materials, equipment, facilities, documentation and warranties (that are exclusive of the FY-1982 baseline budget) solely related to the construction slowdown and/or the subsequent mothbal]ing. 2. Demobilization Includes all cost for work operations associated with moving off the job site upon notification of termination or suspension including dismantling and removal from site of construction equipment, l facilities, personnel, and restoration of the site as required. Demob-ilization is defined here as the " Interrupt Demobilization" and not I the " Bid Demobilization" (that is included in the FY-1982 baseline budget). Remobilization is to be considered after June 30, 1983. i 4 w,. s-

Definitions ATTACHMENT 1 (Paga 2 of 2) 3. Suspension of Contract The projected cost settlement of all contractor identified claims and petential claims resulting from the suspension of work associated with the mothballing (if any). Cost shall include as a minimum all considerations (if any) for nonrecoverable overhead cost, extended , overhead cost and other potential claimed cost (not included in the FY-1982 baseline budget) solely as a result of the construction slowdown and/or the subsequent mothballing. 4. Termination of Contract Includes all projected cost settlements as defined above in " suspension" for c)ntractor identified claims and potential claims resulting from the " termination of contract" associated with the mothballing (if any). Termination cost shall also include as a minimum all consideration (if - any) for cancellation charges and/or restocking charges for existing orders and other potential claim cost (not included in the FY-1982 baseline budget) which are solely as a result of the construction slowdown and/or the subsequent mothballing. e = 6 e t 1 I i D y -e

i n ATTACllMENT t ? 'WtlP-4 Atl0 5 (P) = Primary Responsibility ~ FY-1982 AND 1983 LASELIllE (I) = Input _ 1~ BUDGET. PREPARATION RESP 0llSIBILITIES(j) / T l Major Budget Segment _ WilP J WNP-5 l t Prepurchased Equipment Contracts (P)UE&C i Ebasco (I) SS Business Staff /Dechtel SS Business Staff ' Construction Contracts (P) Bechtel Eb'asco (I) SS Business Staff SS Business Staff (I) Contractors 3 ' Contractors 'd Architect-Engineer Services (P)J SS B'siness S'taff(2) SS Business Staff (2) u Construction Manager Services (P) SS Business Staff SS Business Staff (2) SupplySystem/ Cons'truction' Costs (P) See flote 3 below. See Note'3 below. "0wner's A&G Costs (P) SS Dept. Managers (2) SS Dept. Managers (2)

• Nuclear Fuel (P) SS Fuel Supply Manager SS Fuel Supply Manager Reinvestment Income (P) SS Treasurer SS Treasurer

' flates: -(l), This table is only provided to ident;ify budget preparation responsibilities. Its purpose is ~ not to define approval responsibi,lities. (2) In strict accordance with Amendment flo.1 to " Policy: Statement on Equitable Cost Sharing for Twin-Unit WPPSS Projects". (3) Responsibilities the same as provided in the "1982_ Project Construction Budgqt Preparation Criteria - Phase II". s 0 N y-s a g 9

r ~l - AITACEMEf1T 3 i s-WNP-PHASE I ..C. Date: MOTHBALLIfiG BASELItiE BUDGET Sheet of Revision: Af1D CASH FLOW FORECAST Contract No. Contractor: Cobtract

Description:

e <. 1 FY-1982 ~ )i *JUL

• AUG'
• S EP' OCT

, NOV DEC TOTAL y . Activities v _7 i f i Baseline Scope-7 . Work Invoiced; 6 . Work flot Invoiced .01d C1 aims ' ' j L' Total Baseline ,I Mothballina Scope . Maintenance . Demobilization . Sus p' ens ion (- ~ . Termination t 4 g, o Total 110thballing j t TOTAL SCOPE

• Actuals

~ + j, Assumptions: ,r B Budget Approval Sign-offs Contra $t; Budget Accountability Date , ( Program Direc. tor Date T d A \\ g e /,[. 'd y '.c, \\ ~ ' i]V'. ,9 4 f .i 't _/1 " c._ e.

s ~i .s ' ATTACHMENT 4 e (' WNP-4 AND 5 l FY-1982 AND 1983 BASELINE BUDGET AND CASH FLOW MILESTONE ACTIVITIES SCHEDULE .q Activities Milestone Dates Issue Draft Corporate Criteria 10/7/81 Issue Final Corporate Criteria 10/14/81 Phase I' Budget Submitted to Headquarters 10/31 /81 Phase I Budget Review by Managing Director 11/2/81 Phase II Budget Reviewed by Managing Director 12/14/81 s i e S 4 . 1, W 'm. t w,

~ {'1 ~f' n y ,? e TADLE 4. WA5111NGTON PUDLIC POWER SUPPLY SYSTEll 10-14-8, 8-WEEK ROLLING CA511 FLOW FORECAST s NUCLEAR PROJECTS N05. 4 AND 5 ($ in Thousands) SEPTEHOER OCTODER NOVEMBER f

• WE 9/13 *WE 9/20
• WE 9/27
• WE 10/4 WE 10/11 WE 10/10 WE 10/25 WE 11/1 WE 11/8 WEll/15 WE 11/22 WE 11/29

?g .8 Beginning Balance }60,041 }51,044 $43,480 129M }25,035 118,713 118,517 110,002 $ 1,661 $(2,465) i (4,770) $(13,559) Receipts ~ FueTTrans fer 5 5 - s'- s Interest Transfer 167 122 477 78 55 5.426 37 18 1,957 ,,g. Private Owner 894 288 671 209 342

• 422 457 849

__ 367 178 425 330 N Total Receipts 1 1,061 1 410 $ 1,118 $ 287 397 $ 5,848 5 494 867 $ 2,324 5 178 5 425 330 E* Disbursements " 3 USP-4 5 Construction 842 $ 3.522 $ 2,207 $ 1,377 923 966 500 500 600 500 1 1,000 $ 1,000

l !#

Equipment 421 154 2.124 265 371 853 225 210 300 200 200 200

• T AE/CH 1,108 2.470 960 2.713 880 2.660

.T' (Nners ALG & Constr. 1,000 83 1.010 1,040 1,000 1,000 1,100

• 3 Nuclear fuel Financing 25 y

Total WNP-4 1 3,396 $ 3,759 1 7,811 1 1,642 $ 3.294 UM }4,438 1 710 $ 2.780 700 $ 4.960 $ 1,200 WNP-5 Construction $ 3,006. $ 3,740 $ 4.184 365 964 $ 2,049 $ 2.469 $ 1,439 $ l.080 $ 1.460 682 $ 1,800 Equipment 2.588 420 1,407 239 1,212 1,099 1,266 1,706 913 98 472 1,100 AE/CH 222 54 473 2.361 225 60 36 5,066 75 225 2,300 400 Owners A&G & Constr. 818 1.389 9 800 800 287 800 800 Nuclear fuel 3 1 224 II 2 Financing 25 Total WNP-5 $ 7,462 5 4.215 1 7,453 j_2,974 $ 3.425 $ 4,225 5 4,571 $ 8.490 $ 3,670 $ 1,783 $ 4,254 $ 3.300 Total Olsbursements $10,858 $ 7,974 $15.264 $ 4.616 $ 6,719 $ 6.044 1 9,009 $ 9,200 $ 6.450 $ 2,4J3 $ 9,214 $ 4,500 Ending Dalance $51,044 $4 3,480 $29,364 $25,035 $18,713 $18,517 $10,002 $ 1,661 1(2J65) h Z1DJ 1h5M) lilM9)

• Actuals "Dased on existing cost sharing guidellnes and methods.

? .e '* s . 4.a.:p

r,at;in Pow er Supply Splern P J :.;oo J1V G m p W4*.:..:gion Wo y R.croona Wosti r gtor.%fA g - f, : 3 i... f.

. \\',*-.,. February 1,1932 7 ~ GO-1-82-0041 \\ 9 ,Ms 1 '.O l. fry'7 Docket Hos: 50-509 c c /p Sd Q.c@ph>gb 'i:) [ 50-513 ., l Mr. Willia J. Dircks Executive Dirt >ctor for Operations U. 5. Nuclear Regulatory Co mission Washington, D. C. 20555 I

Subject:

TERMINATION OF SUPPLY SYSTEM NUCLEAR FROJECTS 4 A.D 5 (WHP-4 and WNP-5) On January 22, 1982, the Washington Public Power Supply System Board of Directors adopted a resolution terminating the Supply System's Nuclear Projects Nos. 4 and 5. Construction work on these two (2) projects essentially was halted by the Supply System in July 1981, with the intent that an extended construction delay would continue until June 30, 1983. We advised the staf f of this construction deferral by letter to Mr. H. R. Denton dated October 26, 1981. Those projects were under construction pursuant to Construction Permits CPPR-174 and CPPR-155, respectively. At the time that work was halted, ,,::P-4 was 241 complete and WNP-5 was 16 complete. The Supply System has developed a plan for termination of these projects which contemplates two phases. Phase One involve., efforts to sell the plants intact to a new owner. The Supply System will r.aintain the plant structures and equipment in a licensable condition at least through Phase One and possibly thereaf ter, and will comply with the conditions of the Construction Pennits and the requirements of NRC regulations. We intend by and during these efforts to retain the Construction Fermits. We are willing to meet with your staff to brief it on details of the efforts centempleted. 'D )DI C l Phase Two of the termination plan will ccrence only af ter the Supply D, l Syster. determines, subject to the rights of the Participants and Pacific l Power and I.ight (10; owner of WNP-5), that it is no longer prudent to expect that the projects can be sold in their entirety within a reasonable / ( tire and without unreasonable expense. No definite tire period has been j set for cc!.cletion of the first phase and initiation of the second. r.cocx0300o509;)p/,MOh P e o p o 4 0 t-7 + s 2 0 2 0 1 ,a rop

-as r* 1 a. J. Oircis ~ cge 2 february 1, '. 9 ? WHP-4/5 Te rn..,,c t ion t i i in Phase Two, plant equipcant and raterials will be sold or othersise disposed of in.,a prucent r.anr,er, in accordance with applicable contractual and legal procedures. l With regard to WHP-4, tne application for an Operating Licer.se for ESP-1 and WhP-4, including the f5AR, FER and General Inforration Docu ent, was submitted to the hRC on Noverter 25, 1981. E.ecause we intended at i I that tits to resure construction of K3P-4 folicwing the extend 2d delay, the application addressed both WNP-1 and UNP-4. Recent events dictate tt.at tne application address only KSP-1 now and until further notice. I Very truly yours, l .2 7 - R. L. Ferg 2cn Kanaging Director 1 GCS/sm cc: HR Denton HRC V 5tello NRC EG Adensam HRC A Schoencer liRC RH Engelten riRr Region V HS P.cynolds D&L I t 1 i 4 l

[3 WATER A'VD LlGMT Couul35 TON [~~. LNJH. JONES GENER AL MAN AGER DC'4 ALD fi PC RTER. Mayor 3 JbLpl - r-3 7a j CELCaES L AND

• CruaN R. 5CCTT.Cna.eman

~ '~' ~ ~~ j l gj g L L m}*42 LAr.RY V. WO A R E LL ,E2 g g ERK. MOMIAROMSE ~ ~' ~~ '" "^5""""555 City of McMinnville, Oreoon 97128

MONE 472-6:s8 P.O. Bon 638 133 NORT** EAKER STREET

g,; ;..~. (.cy;;.i

.s DOCKET NUMBER W PROD. & UTIL FAC.. ~h February 11, 1982 PROD. L UTil.. FAC...M. T 2h To All Parties Interested in Supply System Plants 4 & 5 Gentlemen: Enclosed is a significant resciutien adopted by the MCMinnville Water and I.ight Commission at its regular meeting on February 9, 1982. We sincerely hope,that you will take time to review this important document. Sincerely yours, W Alan H. Jones General Manager AHJ: man Enclosure b ~ '3 il h Udp g' af Municipal 93 7]..,. A cwner.mp f ()hA }} - ,4;'+ - -9202190063=820211 fU gDR ADOCK 05000509 r_m x

v .Q RESOLUTION 1982-4 WEREAS, the legislature of the State of Washington has sponsored a project to perform "an independent study... cf the feasibility of cocoletion and operation of Uashingten Public Pmer Supply System (UPPSS) Nuclear P'ojects r Nos. 4 and 5"i and

17dEREAS, a draft report prepared for the State of Washington Legislature dated January 1982 is now available, hereinafter referred to as "the report"; and EEREAS, the report provides an e.xr_ination of the Supply System Fiscal Year'82 Budget and found that if the construction of WP-4 and 5 had not been halted, the two plants could have been cocpleted within costs and schedules projected by the Supply System in its Fiscal Year 82 budget;' and WUE;REAS, the report further provides that the value in 1990 of the cost of pser from MF-4 and 5 levelized in ccastant 1980 dollars was esticated to be 41 rills /Wh for UtE-4 and 44 mills /Wa for WP-5.

Tnese costs are substantially less than the ccchined costs of terminating UNP-4 or 5 and ,bui ding a coal plant to produce the power; and l WEREAS, the repoEt continues that load forecasts prepared for the Independent Review indicate that the rest likely rate of load g cwth in regicnal electricity over the period 1980 to 2000 is about 1.5 percent / year. Tnese forecasts are lower than many others that have been prepared for the region principally because the Independent Review's forecasts take account of the relationship between loads and retail rates. In spite of these. low rates of grcwth, additions to the region's electricity production capacity, beycad that which is currently under construction, will be recuired to balance the region's loads and resources in the ~1990's; and WEREAS, the report finds that the optica of terminating WP-4 and 5, and adding other conventional resources in the 1990's to replace their output, is significantly core expensive than cccpleting WP-4 and 5; and WEREAS, the report further detercines that if not all the output of the MG-4 and 5 is needed by the regica that under certain conditions output could be sold on the spot rarket in other regicns; and WEREAS, the Oregon Departmen:. of Energy in its 6th Annual Report dated January 1982 forecasts that an additional 3,500 megawatts of electrical energy will be needed between now and the year 2000 to serve additional load growth within the State of Oregen; and WEREAS, the Governor's Select Coctaittee reported in the fall of 1981 that the pwer output of UPPSS 4 and 5 is needed and would be cost effective; and WEREAS, over $2.25 billica of the Pacific Northwest region's resources is invested in the two uncogleted plants;,and l l Page 1 - RESOLUTION b

ITHE?IAS, the failure to complete the plants would constitute an inneasurable loss of seven years of planning, licensing, and construction to reet the region's projected pwer needs; and ITdEREAS, efforts to license, plan and const'ruct other pcwer facilities are not justifiable and against the interests of the region's ratepayers until UPPSS 4 and 5 projects are ccepleted; VTrEREAS, to ensure that the best interests of the ratepayers of the 88 participants in the WPPSS nuclear pwer plants 4 and 5, now scheduled for terrination, not. be sacrificed, overlooked or dwngraded in the efforts to 1 cc:7 cte plants 1, 2 and 3; IKM, THEREFORE, BE IT PISOLVED by the City of Mc innville, acting by u and through its Water and Light Cocmission, as foll m s: 1. 'Ihe Governors. of Oregon and Washington reactivate thef.r " Blue Ribbon" cc rittee. The coumittee would be charged with revtew and reccTendations for the best uses of the assets of WPPSS 4 md 5 for the banefit of the region in such manner as to assure the best possible financial return of the 88 participants' ratepayers. Such review should consider eventual 'cc pletion of the plants, sale to another entity, or other proposals. 2. That the appropriate agencies in the states of Oregon and Washmgton issue no licenses or pemits for construction of any major generating facility until the " Blue Ribbon"ecruittee's recort for the best practical plan for gaining the best financial return frca the existing WPPSS 4 and 5 assets is in place. 3. That the United States of America, Department of Interior, acting by and through the Bonneville Pwer Adcnnistration, not contract for the output of any major generating facility until the " Blue Ribbon"ccrmittee's recort for the best practical plan for gaining the best financial return frcm the existing UPPSS 4 and 5 assets is in place. ADOPIED by the Water and Light Cocmission of the City of McMinnville, Oregon, this 9th day of Februarv1982.~ g-. Y e L~ 53 Mayor ana Ex-Officio Coni e n or tne Water and Light Ccumission of the City of McMinnville, Oregon Attest: %D95 S Delores lanci, Clerk k Page 2 - RESOLUTION O-

urTrmTrnus ~- - 'I %.,([g ' .u, n ' NUCLEAR REGULATORY COMMISSION p! WASH'INGT O N, D/C. 205SS ~-- s, MAR 0 21982 Docket Hos: 50-509 and 50-513 a Mr. Robert L. Terguson, Managing Director Washington Public Power Supply System P.O.' Box 968 Richlar.d, Washington 99352 Dea r-H r.-Fe rgu son:--

Subject:

Terminatio'n of Washington Nuclear. Projects,4 and 5 In your letter of February 1,1982, Ao Mr. W. J. Dircks, you dit:ussed the Supply System's intent to maintain the structures and equipment at Washington Nuclear Project (WNP) Nos.- 4 and 5 in a licensable condit-ion at least through the period you have termed Phase One 'and to comply with all existing construction permit conditions and requirements. Our preliminary assessment of this decision does not indicate that any additional near-term action other than that taken or, planhed is necessary at this time on the part of the Supply System. It is our understanding that the ' upply System intends to carry out the management S plan presented to the Region V Office on December 10, 1981, insofar as maintaining ' the plant equipment and records. The NRC Resident Inspectors and Re'gional Inspec-tors intend to conduct their act,ivities (inspection surveillance, audit) on both units in accordance with this plan until such time as the Supply System announces termination of phase one. The. staff has ceased its review of the operating license (0L) application for WNP-4 as you requested. We are continu~ing our acceptance review of the WNP-1 OL applica- ' tion.- ~ You should" amend'th'e pending appfiHt' ion-f5r ~operat iiig-1i~ censes-f5FWNP 1~ ~' ~ and WNP-4 to reflect the present status of the WNP-4 project. Because the staff. expects to cocplete its acceptance review for WNP-1 only by mid-March 1982, it may be advisable for you to await the outcome, of that review and amend your application - to delete WNP-4 at that time. We could then docket and notice the applicatierrfor an operating license for WNP-1 only., Other aspects of the termination of WNP-4 and, WNP-5 could also be discussed at that tina. -Si ncerely, _.2 - = - - p g/ Robert L. edesc, (~ stant Director [ Division of Licensing for Licensing L ( f-W- }/>pD 4 ,}}