ML20064H868
| ML20064H868 | |
| Person / Time | |
|---|---|
| Site: | 05000477, 05000478 |
| Issue date: | 12/19/1978 |
| From: | Mittl R Public Service Enterprise Group |
| To: | Kniel K Office of Nuclear Reactor Regulation |
| References | |
| NUDOCS 7812270248 | |
| Download: ML20064H868 (1) | |
Text
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O PSEG Pubhc Serwce Electnc and Gas Company 80 Park Place Newark N J 07101 Phone 201430-7000 7 *
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December 19, 1978 T
Director of Nuclear Reactor Regulation Attention: Mr. K..Kniel -
Chief, LWR Branch #2 Division of Project Management U.S. Nuclear Regulatory Commission Washington, D.C. 20555
Dear Mr. Kniel:
ATLANTIC GENERATING STATION f APPLICATION FOR LICENSES AMENDMENT 33 NUMBERS 1 AND 2 UNITS DOCKET NUMBERS STN 50-477 AND 50-478 Transmitted herewith is the applicant's Notice of Withdrawal of Application in the captioned proceeding. In accordance with 10CFRSection 2.107 this notice is being transmitted to the Atomic Safety and Licensing Board.
This amendment will be served upon governing officials of affected municipalities in accordance with the provisions of the above mentioned regulations.
This submittal includes 70 copies of Amendment 33 to the Pre-liminary Safety Analysis Report.
- For your information, enclosed is a press release issued by Public Service Electric and Gas Company dated December 19, 1978.
Very truly yours,
- \}j)' 4 /W R. L. Mitti General Manager - Licensing and Environment Engineering and Construction Department FWB:aer Encl.
The Energy Peoole 781227* N mx uw w
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O PSEG-Pubbc Service Elecinc and Gas Company 80 Park Place Newark. N J 0710t Phone 201430-7000 U.S. NUCLEAR REGULATORY, COMMISSION DOCKET NOS. STN 50-477 STN 50-478 PUBLIC SERVICE ELECTRIC AND GAS COMPANY AMENDMENT 33 APPLICATION FOR LICENSES NOTICE OF WITHDRAWAL OF APPLICATION
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- Public Service Electric and Gas Company on its own behalf, and as Agent for Atlantic City Electric Company and Jersey Central Power and Light Company, hereby withdraws its application for
- construction permits in the captioned proceeding.
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Respectfully submitted,
$ PUBLIC SERVICE ELECTRIC AND GAS COMPANY l
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T. J. Martin Vice President i
Engineering and Construction
- FWB:aer The Energy People nu wa >n
State of New Jersey
- SS County of Essex THOMAS J. MARTIN, being duly sworn according to law deposes and says:
i That he is a Vice President of Public Service Electric 4
and Gas Company, the Applicant herein, and is authorized to sign the foregoing Amendment 33 to APPLICATION F'OR LICENSES, Notice of Withdrawal of Application, on behalf of Public Service Electric and Gas Company, Atlantic City Electric Company and Jersey Central Power & Light Company.
THOMAS J. MARTIN-I Sworn and subscribed to )
before me this /#}Iday
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of December, 1978. )_
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W. R. VE:p m .
NOTARY PU5uc cf ..
' c~ men aaru}:;.[,1', .':7. ,. g.f,
Pic'ic &rvice D:ctric and Gm Commny , m
- 30 Park Pl.x.c Newark, M.J. 07101 Phone 201/430 700v L
Nevvs Release FOR IMMEDIATE RELEASE
Contact:
Arthur F. Lenehan Tuesday, December 19, 1978 General Manager - Information Services Public Service Electric and Gas Company said today (Tuesday, December 19, 1978) that it had decided to cancel a contract to purchase four floating nuclear power plants from Offshore Power Systems of Jacksonville, Fla., before year end.
Less-than-anticipated growth in the peak demand for i
electricity in New Jersey is the only reason for the cancellation, the utility said. "The decision by the Board of Directors to cancel,"
stated Chairmar. Robert I. Smith, "should not be interpreted by anyone as a rej ection of nuclear power. We are still firmly convinced that nuclear offers the best' solution to the problem of supplying electrical energy to the people of New Jersey."
PSE6G had planned to locate two of the floating units at its proposed Atlantic Generating Station, 2.8 miles off the coast of South Jersey,12 miles northeast of Atlantic City. The first Atlantic unit was scheduled to begin operating in 1988; the second in 1990. The third and fourth floating units had operating dates of 1993 and 1995, but a site had never been selected for them.
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. "If our presently anticipated rate of growth is accurate,"
Smith said, "we simply will not need thes'e units on these dates and another postponement in the schedule does not seem practical."
PSE4G has postponed the operating dates of the four units twice before. Ordered in 1972, the first Atlantic unit was originally scheduled for operation in 1980, but the Arab oil embargo of 1973-1974 and the subsequent reduction in the demand for electricity dictated postponements, first until 1985 and subsequently until 1988.
The average annual rate of growth in electric peak demand udll be 2.8 per cent through 1995, according to PSESG's latest energy -
forecast, issued earlier this Fall. A year ago, a 3.2 per cent cent growth figure was being forecast.
Peak demand is the high point achieved each year in electrical demand. It is usually reached in July or August when air-conditioning increases the demand. Conservation, lower rates for using power in off-peak hours and other techniques now being introduced in cooperation with the New Jersey Department of Energy and the Board of Public Utilities are expected to lower the use of electricity during the hours of peak demand in the future.
Smith indicate'd, however, that as long as electric i demand continues to grow, even at current rates, PSE6G will need some additional sources of power.
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"Although our studies still indicate that nuclear is the way to go," said Smith, "we will also be considering these other possibilities in the future: 1) constructing coal-burning plants;
- 2) acquiring an interest in nuclear units being built by other utilities and 3) keeping fossil-fuel plants operating beyond planned retirement dates. In any event, we'll do whatever is necessary to meet the needs of all our electric customers."
"We regret having to cancel the floating power plant project," Smith said. "It's a good concept, with many advantages.
The floating unit utilizes a standard design which lends itself
( to factory-type assembly. That means better grality control, plus reduced manufacturing costs and lead time. _Their portability is also an attractive advantage over land-based plants. After initial licenses are granted, subsequent licensing of additional units should be relatively simple and straightforward. There's also an unlimited supply of cooling water in the. ocean," Smith added, "and the environmental effects are minimal with a floating unit.".
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Cancellation of the Atlantic units will mean a decrease-of approximately $761 million in construction spending between now and the end of 1982 for PSEGG. It will also mean fewer trips to the money market by the company to raise construction funds through the sale of stocks and bonds.
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4 The decision to cancel at this time will save the utility $5.5 million in taxes, a saving that will not be avail-able next year under the new federal corporate income tax law.
Thd' company has spent $322 million on the project which, after tax deductions, leaves $189 million in unrecovered costs to be amortized over a 20-year period. In PSE6G's last rate casa, the State Board of Public Utilities agreed to allow a 20-year amortization of all legitimate costs.
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