ML20063G702

Forwards Util Responding to NRC 820624 Questions Re Need for Power Issue

ML20063G702
Person / Time
Site:	Skagit
Issue date:	07/26/1982
From:	Thomsen F PERKINS, COIE (FORMERLY PERKINS, COIE, STONE, OLSEN
To:	Lewis N, Wolf J Atomic Safety and Licensing Board Panel, WASHINGTON, STATE OF
References
NUDOCS 8207290191
Download: ML20063G702 (1)

Text

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.Mr. Nicholas D. Lewis, Chairman Energy Facility Site Evaluation Council Mail Stop PY-ll 4224 Sixth Avenue S.E.

Olympia, Washington 98504 Judge John F. Wolf, Chairman Atomic Safety and Licensing Board 3409 Shepherd Street Chevy Chase, Maryland 20015 Re: In the Matter of Puget Sound Power & Light Company, et al.

Skagit/Hanford Nuclear Project, Units 1 and 2 NRC Docket Nos. STN 50-522 and 50-523 EFSEC Application No. 81-1 Gentlemen:

For the information of the Board, the Council, and the Parties we are enclosing a copy of Mr. Myers' letter (PLN-263) of July 16, 1982 to Mr. Regan, including Puget Power's attached responses to the four questions set forth in Mr. Regan's June 24 letter to Puget Power.

Very truly yours, PERKINS, COIE, STONE, OLSEN & WILLIAMS By F. Theodore Thomsen Attorneys for Applicants FTT:kd cc w/ enc: EFSEC Distribution List NRC Service List u

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[ evorr eca sun.one . 2osuu-sass B EL L EVU E. WASH t NGToN 98009 July 16, 1982 PLN-263 Mr. W. H. Regan, Jr., Chief Siting Analysis Branch Division of Engineering Office of Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission Washington, D. C. 20555 -- --

Dear Mr. Regan:

Puget Sound Power & Light Company Skagit/Hanford Nuclear Project, Units 1 & 2 Docket Nos. 50-522 and 50-523 Need-For-Power Issue  !

This is in response to your letter dated June 24, 1982, to Mr. Frank A. Spangenberg regarding the need-for-power issue.

We remain convinced that the Skagit/Eanford Nuclear Project (S/ENP) should be available as a resource option for the future, and that a demonstration of need can be made. We are ::urrently developing a revised need-for-power section for our Application for Site Certification / Environmental Repcet, which we plan to file during the latter part of August.

That amendment will address all available forecasts and will utilize an approach that we believe will be consistent with the draft Regional Power Plan when it is issued later this year. We, therefore, believe that the Final Environmental State-ment can and should be issued this Fall, following your review of the updated information.

Our application has been under review since 1974. We believe there is considerable merit to concluding that review in a timely manner, which would include issuance of the FES in the timeframe suggested and the conduct of other activities leading to commencement of the environmental hearings in April, 1983.

We plan to discuss these matters with you at the meet'ing scheduled for July 21, 1982. In addition, we are enclosing our specific responses to the questions set forth in your June 24 letter. .

Ve. truly yours, Robert V. Mye, Vice Preside t o o ,- I n e ,hn, Generation Resources w r t" "tajp Enclosure

ATTACHMENT TO PLN-263 July 16, 1982 Ouestion 1:

Is the Applicant going to depend on a guarantee of the Bonneville Power Administration acquisition of power from the Skagit/Hanford Proj ect before proceeding with construction?

Response

Not necessarily. Selling th ou tput of the S/HNP to the Bonneville Power Administration under the provisions of the Regional Power Act may be one option available to the Applicants.

The resulting assured revenue stream from Bonneville would presumably make financing of the Project easier and less expensive than if the Applicants pursued conventional financing me thods . There are drawbacks to such a sale , howeve r. The seriousness of such drawbacks will depend on future circum-stances. An example of such a drawback would be that the Applicants would have to rely on other resources to meet their load requirements. . A likely candidate would be long-term power supply contracts from Bonneville, but presently there is no assurance this would be less expensive than retaining the Project output to meet load. Depending on legislative, regula tory, economic and tax developments, there could be mechanisms avail-able to the Applicants to finance the Project on reasonable terms without selli ng the output to Bonneville and taking power supply contracts from Bonneville in return. Therefore, it is not the Applicants' position that acquisition by Bonneville of the Project output is currently a condition to proceeding with cons tru c t io n .

Question 2:

If the answer to the previous question is negative, what would the decision to cons truct the Project be based on? -

Response

The decision to proceed with the cons truction of the S/HNP , as we have stated in other forums throughout the region, will be based u pon a nu mbe r of co ns id e ra tions . The ultimate decision is, of course, one of need for the S/HNP and economics. Among the factors we have identified as af fecting the econcmics of the Project are an improved regulatory climate which will introduce c e rt ainty into the cons truction and operation of the Project --

both with respect to the time to construct and the extent and nature of dia nge s wh ich migh t be imposed upon the Project during its cons truction and subsequent operation.

At tcchmm nt to PLN-2 6 3 July 16, 1982 Page 2 The financial and economic climates which exist at the time the decision is made obviously have significant impacts. A period of high inflation and interest rates, such as we experienced over the past few years, will have a substantial and negative impact on the relative economics of capital intensive nuclear projects.

On the other hand, the controlled inflation rates and lower interest rates we experienced in the early 70's might prove very f avorable to a nuclear project.

In addition, the labor climate which exists at the time this decision is made, and the type of labor agreement that can be re ach ed , will have an economic impact and affect the decision.

An environment where frecuent work stoppages, wildcat strikes a nd labor dif ficulties can occur can greatly increase the economic uncertainty associated with a project of any type , bu t particularly can impact nuclear power projects.

The need-for-power cons ide ra tions influencing a decision to construct the Project are discussed in the response to Question 3.

Question 3: ,

What forecas t will need-for-power for the Project be based on? -

Response

In April 1983, the Regional Power Council, created by the Pacific Northwest Electric Power Planning and Conserva tion Act, 94 Stat.

2697, will publish a regional conservation and electric power plan. It is anticipa ted this plan will contain a range of electric demand forecasts for the region that will provide signi-ficant planning inf o rma tion . While the regional plan is not likely to identify each individual planned generating resource, it is expected it will, as a minimum, define a low and high average annual growth rate through the year 2000, which will l

assist utilities and the region in de termining the ty pe and timing of resources to be constructed and the range of vears during which resources will be needed.

I In addition to the Regional Council's plan, the four utilities sponso ri ng the S/HNP will review their own forecasts to assess j the need for the S/ENP.

Thus, to the extent the S/ENP will be available as one of the regional resources for meeting regional needs in the future, the Regional Council's plan will be significant in de termining need .

To the extent the S/ENP is needed to me e t loads of the sponsoring u tili ties , their forecasts will be significant.

'Attachm2nt to PLN-263 July 16, 1982 i Page 3 i Question 4:

What is'the Applicants' current position on the possibility of ,

acquisition of Washington Public Power Supply System Units 4 and 5?

Resconse:

At this time it is not possible to determine whether the ..

Applicants should undertake acquisition of WPPSS Units 4 and 5. __

Many important economic, contractual, licensing and operating f actors must be considered . Among these are how the purchase price would be determined, how the price would be paid, and how the nuclear steam supply system and associated equipment for the S/HNP Unit I would be disposed of; what warranties would be obt ained , whether the current architect-engineer would be retained, and how construction errors discovered af ter purchase would be handled; how the status of the units would be de termined at time of purchase, what problems would be associated with trans ferring licenses, and what unresolved problems would be assumed; and the potential problems in sharing 2acilities and the site.

In addi tion to these factors, the future power needs in the region will be a significant f a c tor . Should we experience a high rate of growth, the WPPSS units may well be needed in addition to the S/HNP.

The Applicants do not believe it will be feasible to resolve these matters and make a decision on the possible acquisition of WPPSS Units 4 and 5 until af ter issuance of construction permits for the S/HNP.

In our view, both WPPSS Units 4 a nd 5 a nd the two S/HNP units should be among the resource options available in the future to meet regional powe r needs . The question of the proper mix of generating resources and' the time when each will be needed are questions that can only be answered in the future, as some of the uncertainties now present are resolved and the economy enters a period of growth. .

What is import ant now is the addition of the S/HNP units to the resource options available to the region, through issuance of cons truction pe rmits on a timely basis.

e PUCLT SOUNil P4 M t H 6 LIGHT COMPANY ~

SKAGIT/HAhrORD NUCLEAR PROJirr Date July 26, 1982 trSoc Di trabution i.ast Applacetton No. 81-1 ,

APPLICANT COUNSEL FOR THE COUNCIL "" "" N Mr. Ted van Decar Mr. John C. Douglass Mr. Revin M. Ryan C ** sanoner William H. Sebero Senior Environmental Engineer State t:nergy Offace Assistant Attorney General n on h nty Comm.

Puget Sound Power & Light Company 400 East Union Temple of Justice Denton County Court house Puget Power Building Mai! Stop Ih-ll Mail Stop AV-21 Pasco, WA H 301 Kellevue, WA 98009 Olympia, WA 98504 Olympia, WA 98504 INTERVENORS Mr. Cordon W. Jacobsen Dr. Charlee Woelke COUNCIL LEGAL OFFICERS Vice President, Nuclear Projects Department of Fisherise Frank J. Owens, Esq.

No r t hs,e s t Energy Services Company General Administration Building Mr. Patrick Digge Construction impact Group P.O. aos 1090 Ma61 Stop AX-Il f.e941 Officer Owens, Weaver Davies & Dominick kirkland, WA 90033 Olympia, WA 98504 Energy Facility Site 926 - 24th Way S.W.

Evaluation Council Olympia, WA 98502 Mr. F. Theodore Thomsen Mr. Jon Cilst rom Matt Stop PY-Il Perkins, cose, Stone. Department of Came Olympia, WA 98504 Mr. Robert C. lothrop Olsen 6 Williams 600 North Capitol Way Attorney for Columbia Itiver 1900 Washington Hullding Mail Stop CJ-ll Darse! L. l'eeple s Inter-Tribal Fish Ccussission Seattle, WA 98*01 Olympia, WA 98504 1.vgal Officer Suite 320 4.nungy racility Site 8383 N.E. Sandy Slvd.

EXECUTIVE SECHETANy Mr. John L. Chambers Evaluation Council Portland, OR 91220 thspartment of Natural Resources Mail Stop Py-ll Mr. William L. Fitch Public Landa Building Olympia, WA 98504 ATOMIC SAFETV AMD 1.lCENSING SOARD Esecutive Secretary Mail Stop OW-21 Energy racility Site Olympia, WA 98504 (VUNCI L IDR THE ENVIROMMENT John F. Wolf. Esq., Chairman Evaluation Council Administ rative Judge Mn41 Stop PY-Il Mr. Claude E. Lakewold Mr. Thomas R. Bjorgen Atumic Safety and Licensing Board Olympia, WA 98504 Office of Financial Management Assistant Attorney General 3409 Shepherd Street House Office Building Matt Stop AO-01 Chevy Chase, MD 20015 COUNCIL-Ma!! Stop AL-01 Temple of Justice Olymple, WA 98504 Olympia, WA 98504 Dr. Frank F. Hooper Mr. Nicholas D. Lewle, Chairman Administrative Judge Energy racility Site Mr. John A. Clark AGtNCY PANTIES Atomic Safety and Licensing Soard Evaluation Counc!! Parks and Recreation Commiselon School of Natural Resources Mail Stop PY-11 7150 Cleanwater Lane Mr. Spencer W. Daniele University of Michigan 4224 Sixth Avenue S.E. Mail Stop EY-!! Aemistant Attorney General Ann Arbor, MI 48190 Olympia, WA 98504 Olympia, WA 98504 D" par tment of Transportation Man! Stop kr-01 Mr. Custave A. Linenberger Mr. Art Scheunemann Mr. Dort Baron Olympia, WA 98504 Administ rative Judge D2partment of Agriculture Planning 6 Community Affaire Atomic Safety and Licensing Board General Administration Building 400 Capitol Center Building Mr. R. C. Schuster U.S. Nuclear Regulatory Commiselon Ma!! Stop AX-41 Mail Stop CH-51 District Administrator Washington, D.C. 20555 Olympia, WA 98504 Olympia, WA 98504 Department of Transportation P.O. Box 52 Judge Robert Laso Mr. Merlin Smith Mr. Sam 1. Reed Yakima, WA 98907 Atomic Safety and Licensing Board Coase . 6 Economic Development Social and Health Services U.S. Nuclear Regulatory Commission General Administration but! ding Hall Stop LD-!! Mr. Charles Lean Washington, D.C. 20555 Mail Stop AX-13 Olympia, WA 98504 Department of Ecology Olympia, WA 98504 Maal Stop PV-11 NRC STAFF Mr. Thomas C. Stacer Olympia, WA 98504 Mr. Fred D. Hahn Washington Utilities and Richard L. Black, Esq.

Department of t'cology Transportation Commisalon James M. Johnson Of fice of the Executive Legal Director Mail Stop PV-12 Highways and Licenses Building Paul S. Majkut U.S. Nuclear Regulatory Commission Olympia, WA 98504 Mail Stop P8-02 Assistant Attorneys General Washington, D.C. 20555 Olympia, W ?. 98504 Departmente of Floheries Mr. David H. Guler and Game Mr. Jan A. Norris Dept. of Emergency Services Mr. Joe Bell Temple of Justice Senior Siting Engineer 4220 East Martan Way Department of Transportation Mail StoP PB-53 Siting Analyste Branch Mall Stop PT-11 Highway Administration Bu!! Jing Olympia, WA 98504 U.S. Nuclear Regulatory *Commiselon Olympia, WA 98504 Mail Stop KF-01 M/S AR-5200 '

Olympia, WA 98504 Washington, D.C. 20555 7-26-82

DATE July 26, 1982 SK AGIT/liANTORD NUCLEAR PROJECT NBC Service List Docket Nos. STN $0-522 and STN 50-523

• COMMISSION NRC STAFF APPLICANTS (cont.)

Secretary of the Commission Richard L. Black, Esq. Wirren C. Hastings, Esq.

Docketing and Service Pranch Counsel for the NRC Staff Associate Corporate Counsel U.S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission Portland General Electric. Company Washington, D.C. 20555 Office of the Executive Lega l 121 S.W. Salmon Street Director Portland, OR 97204 LICENSING HOARD Washington, D.C. 20555 John F. Wolf, Esq., Chairman Richard D. Dach, Esq.

INTEHESTI:D STATES AND COUNTIES Stoel, Rives, Boley, Fraser & Wyse Administrative Judge Atomic Safety and Licensing Board 2300 Georgia Pacific Building Washington Energy Facility Site 900 S.W. Fifth Avenue 3409 Shepherd Street Evaluation Council Portland, OR 97204 Chevy Chane, MD 20015 Nicholas D. Lewis, Chairman Mail Stop PY-Il OTilER Dr. Frank P. Itoope r Olympia, WA 98504

• Administrative Judge Nina Bell, Staff Intervenor Atomic Safety and Licensing Board Eevin M. Ryan, Esq. Coalition for Safe Power School of Natural Resources Washington Assistant Attorney Suite 527, Governor Building University of Michigan General 408 S.W. Second Avenue Ann Arbor, MI 48190 '

Temple of Justice Portland, OR 97204 Olympia, WA 98504 Mr. G.ustave A. Linenberger Ralph Cavanagh, Esq.

Administrative Judge Frank W. Ostrander, Jr. , Esq.

Atomic Safety and Licensing Board Oregon Assistant Attorney General Natural Resources Defense Council 25 Kearny Street U.S. Nuclear Regulatory Commission 500 Pacific Huildin9 San Francisco, CA 94108 washington, D.C. 20555 520 S.W. Yamhill Portland, OR, 97204 Terence L. Thatcher, Esq.

APPEA L' DOARD NWF and OEC Dill Sebero, Chairman 708 Dekum Building Alan S. Rosenthal, Chairman nenton County Commissioner 519 S.W. Third Avenue Atomic Safety and Licensing P.O. Dox 470 Portland, OR 97204 Appeal Doard Prosser, WA 99350 U.S. Nuclear Regulatory Commission Mr. Robert C. Lothrop Washington, D.C. 20555 APPLICANTS Attorney for Columbia River Inter-Tribal Fish Commission Dr. John II. Duck, Member P. Theodore Thomsen Suite 320 Atomic Sa f ety and Licensing Perkins, Cole, Stone, 8383 N.E. Sandy Blvd.

Appeal Doard Olsen & Williams P rtland, OR 97220 U.S. Nuclear Regulatory Commission 1900 Washington Duilding James B. Ilovis Washington, D.C. 20555 Seattle, WA 98101 Yakima Indian Nation Michael C. Pa r ra r , Membe r c/o Novis, Cockrill & Roy David G. Powell, Esq. 316 North Third Street Ateimic Sa f ety and Licensing Lowenstein, Newman, Reis & Axelrad P.O. Dox 487

• Appeal Hoard , 1025 Connecticut Avenue H.W. Yakima, WA 98907 U.S. Nuclear Regulatory Commission Washington, D.C. 20036 Washington, D.C. 20555 Canadian Consulate General James W. Durham, Esq. Donald Martens, Consul Senior Vice Prasident 412 Plaza 600 General Counsel and Secretary 6th and Stewart Street Portland General 1: Ice:tric Company Seattle, WA 98101 121 S.W. Salmon St. rect Portland, OR 97204 7-26-82

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