ML20064J038
| ML20064J038 | |
| Person / Time | |
|---|---|
| Site: | 05000477, 05000478 |
| Issue date: | 12/19/1978 |
| From: | Lenehan A Public Service Enterprise Group |
| To: | |
| Shared Package | |
| ML20064J024 | List: |
| References | |
| PR-781219, NUDOCS 7812280207 | |
| Download: ML20064J038 (4) | |
Text
l t
r r
.!! News Release d
FOR DOEDIATE IILEASE
Contact:
Arthur F. Lenehan Tuesday, Decamber 19, 1978 General Manager - Information Serrices 4
i 1
it Public Serrica Electric and Gas tw said today (Thesday, i
December 19,19781 that it had decided to cancel a contract to purchase u
four floating nuclear power p1*** from Offshore Power Systems of t.
Jachewille, Pla., before year end.
p Less-than-naticipated ais tk in the peak demand for i
yt elsetricity in New Jersey is the only reason Enr the i:ancellation, the j
6-utility said.
"The decision by the Board of Directors to cancel,"
~
)
t u
stated. Chai:: man Robert I. Smith, "should not be interpreted by anyone i
g as a refaction of unclear power.
We are still fira17 convinced that f.
-i nuclear offers the best sointion to the probles of supplying i
t electrical energy to the people of New Jersey."
g fi PSE4G had planned to locate two of the floating units at its -
}
i proposed Atlantic Generating Station, 2.8 miles off the coast of South f
t Jersey, 12 miles northeast of Atlantic City. The first Atlantic unit t
I p.
was scheduled to begin operating in 1988; the second in 1990. The
}
r; third and fourth floating units had operating dates of 1995 and 1995, h
[
3.t a size had oster seen azected for the..
i
)
781228o2 O
[
t es4an o s n p k
!~
"If our pres;ntly anticipated rato of growth is accurato "
i-Smith said, "we simply will not need thes' units on these dates e
u
[.
and another postponement in the schedule does not seen practical."
h.
PSNG has postponed the operating dates of the four units twics
(;
before.
Ordered in 1972, the first Atlantic unit uns originally b
scheduled for operation in 1980, but the Arab oil embargo of 1971-J' h
1974 and the subsequent reduction in the demand for electricity k
dictated postponements, first until 1985 and subsequently until 1988.
l Yc The average annumi rate of growth in electric peak demand will h
be 2.8'per cent through 1995~, according to PSE4G's latest energy t
forecast, issued earlier this Fall.
A year ago, a 3.2 per cent _
i[
esnt growth figure was being forecast.
i Peak demand is the high point achiered each year in 1;
electrical demand.
It is usually reached in July or Angost when J.;
air-conditioning increases the demand.
Conserration, lower rates 1
for using power in off-peak hours and other techniques now being f.:
introduced in cooperation with the New Jersey Department of Energy i
and the Board of Public Utilities are expected to lower the use-of electricity during the hours of peak danand in the future.
1 Smith indicataId, hoverer, that as Ioag as electric j
de==nd continues to grow, eron at current rates, PSE8G will need t:
sees additional sources of power.
l 1
l 4
l
"Although our studies still,i=M*? that nuclear is the
. f.
E way to go," said Smith, "we will also be considering these other h.
pan =4hilities in the future: 1) constructing coal-burning plants;
(
- 2) acquiring-sa interest in nuclear units being built by other
[
utilities and 3) keeping. fossil-fuel plaats operating beyond
'i
[
planned retirement dates.
In any event, we'll do whatever is t.
necessary to meet the needs of all our electric castomers."
p i[
"We 1 regret hering to cancel the floating power plant
(.
project
- reith said.
"It's a good. concept, with many advantages..
1.
The floating unit utilizes a. standard design which lands itself 1;,
to factory-type assembly.
That mann= htter quality control.
[
plus reduced annufacturing costs and lead time.
Their portability 1;
is also an attractiva advantage over land-based plants,. After t.
initial licenses are granted, subsequent licensing of additional p:
units should be relatively simple and straightforward. There's 1
also an unlimited supply of cooling water in 'the ocean," Smith O
added, "and the environmental effects are miniani with a floating
> ~
unit.".
1 Cancellation of the Atlantic units will mean a decreese 1-of approximatel'y $761 million in construction s;-= ding between 1,
now and the end of 1982 for PSE4G.
It will also mean fewer trips 1.
to the money market by the company to raise construction funds t
through the sale of stocks and bonds.
i
,,--,e v-w m,-
--,,--<,wwww-
.wmn,--.-ww--
. - - - - - = ~ ~ - -, - - - - - -. - - - - - - - - - - -
i
./
.}
4
.I 1
i The decision to cancel at this time will save the k
1 atility $5.5 milliam in taxes, a saving that win not be avail-1 j
t able next year under the new federsi corporate income tax law.
i i
i Thi company has spent $322 =4111aa.on the project 1
which,, after tax deductions, leaves $189'aillica in unrecovered I
costs to be amortized over a 28-year period.
In PSE4G's last i
rate case, the State Board of Public Utilities agreed to allow
'I a 20-year amortization of all legitimate costs.
i A
i I
e i
f e
I i
l 1
UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of
)
)
PUBLIC SERVICE ELECTRIC
)
Docket Nos. STN 50-477
& GAS COMPANY
)
50-478
)
(Atlantic Generating Station,
)
Units 1 and 2)
)
CERTIFICATE OF SERVICE I hereby certify that copies of " Notice to Atomic Safety and Licensing Board of Withdrawal of Application,"
dated December 20, 1978, in the captioned matter, have been served upon the following by deposit in the United States mail this 20th day of December, 1978:
Sheldon J. Wolfe, Esq.
Carl Valore, Jr. Esq.
Chairman, Atomic Safety and Attorney for County of Atlantic Licensing Board Valore, McAllister, DeBrier, U.S. Nuclear Regulatory Aron and Westmoreland Commission 535 Tilton Road Washington, D.C.
20555 Northfield, New Jersey 08225 Mr. Lester Kornblith, Jr.
Franklin H. Berry, Jr., Esq.
Atomic Safety and Licensing County Counsel Board Panel County of Ocean U.S. Nuclear Regulatory Berry, Summarill, Rinck & Berry Commission P. O. Box'757 Washington, D.C.
20555 34 Washington Street Toms River, New Jersey 08753 l
Dr. David R. Schink Department of Oceanography Chairman, Atomic Safety and Texas A&M University Licensing Board Panel College Station, Texas 77840 U.S. Nuclear Regulatory Commission:
Washington, D.C.
20555 Mr. Kenneth B. Walton 309 Twenty-First Street, South Chairman, Atomic Safety and Brigantine, New Jersey 08203 Licensing Appeal Board Panel U.S. Nuclear Regulatory Commission-Washington, D.C.
20555 John J. Degnan, Esq.
Attorney General of New Jersey Department of Law and Stephen M. Schinki, Esq.
Public Safety Counsel for NRC Regulatory Staff Division of Law Office of the Executive Legal 1100 Raymond Boulevard Director Newark, New Jersey 07102 U.S. Nuclear Regulatory Commission Washington, D.C.
20555 Mr. Chase R. Stephens Richard S. Salzman, Esq.
Docketing & Service Section Chairman Office of the Secretary Atomic Safety and Licensing U.S. Nuclear Regulatory Appeal Board Commission U.S. Nuclear Regulatory Washingtcn, D.C.
20555 Commission Washington, D.C.
20555 Anthony Z. Roisman, Esq.
Natural Resources Defense Council Dr. John H. Buck 917 15th Street, N.W.
Atomic Safety and Licensing Washington, D.C.
20005 Appeal Board U.S. Nuclear Regulatory Mark L. First, Esq.
Commission Deputy Attorney General Washington, D.C.
20555 State of New Jersey State House Annex Michael C. Farrar, Esq.
Trenton, New Jersey 08625 Atomic Safety and Licensing Appeal Board Harold P. Green, Esq.
U.S. Nuclear Regulatory Commission Fried, Frank, Harris, Shriver Washington, D.C.
20555
& Kampelman
(
Suite 1000, The Watergate 600 600 New Hampshire Avenue, N.W.
Washington, D.C.
20037 Dr. Glenn L. Paulson Assistant Commissioner, State of New Jersey Department of Environmental Protection Labor & Industry Building John Fitch Plaza Trenton, New Jersey 08625 Richard Fryling, Jr., Esq.
Assistant General Solicitor Public Service Electric
& Gas Company e
80 Park Place Newark, New Jersey 07101 R. William Potter, Esq.
Assistant Deputy Public Advocate Department of Public Advocate Division of Public Interest Advocate P. O. Box 141 520 East State Street Trenton, New Jersey 08625 A
7 Dn1B.C~ uo %.
u
_ _ - -