ML20069C931
| ML20069C931 | |
| Person / Time | |
|---|---|
| Site: | Washington Public Power Supply System |
| Issue date: | 05/17/1994 |
| From: | Reynolds N WINSTON & STRAWN |
| To: | Bloch P, Bright G, Schink D Atomic Safety and Licensing Board Panel, TEXAS A&M UNIV., COLLEGE STATION, TX |
| References | |
| CON-#294-15080 OL, NUDOCS 9406020150 | |
| Download: ML20069C931 (10) | |
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l502/O WINSTON & STPuiWNDOCKETED
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SiLA$ H STRAWN (1891.t9466 AASHINGTON. DC. 20005-3502 5 WEST D
(202) 371-5700 I
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ucsme a:23 274 59so NICHOLAS S. REYNOLDS 00CKETING & SERVf@f'== '==
(202) 371-5717 BRMG May 17, 1994 I
Peter B.
Bloch, Esq.
David R.
Schink Chairman, Atomic Safety Department of Oceanography and Licensing Board Texas A&M University U.S.
Nuclear Regulatory College Station, Texas 77843 Commission Washington, D.C.
20555 Mr. Glenn O.
Bright Atomic Safety and Licensing Board U.S.
Nuclear Regulatory Commission Washington, D.C.
20555 Subj:
Washington Public Power Supply System (WPPSS Nuclear Project No. 1)
Docket No. 50-460-OL Gentlemen:
This letter supplements our April 18 letter to apprise the Licensing Board and parties of recent action affecting the future of the WNP-1 project.
We advised the Licensing Board and parties in a January 12, 1994 status report that the Bonneville Power Administration ("BPA") had formally recommended to the Washington Public Power Supply System (" Supply System") Board of Directors that the WNP-1 project, and the similarly deferred WNP-3 project, in their current conception, be terminated.
In our status report of April 18, 1994, we further informed the Licensing Board and the parties that the supply System Board would vote in May on whether to formally terminate the WNP-1 and WNP-3 projects.
The Board subsequently scheduled a special meeting for May 13, 1994, to vote on this issue.
On May 13, 1994, the Supply System Board voted, consistent with the BPA recommendation, to terminate the WNP-1 project in its current conception.
Copies of the Board resolution and press release are attached.
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I WINSTON & STILiWN Atomic Sa2'ty and Licensing Board May 17, 1994 Page 2 While the vote will result in termination of certain contract provisions between the Supply System and BPA for the WNP-1 project, neither the Supply System nor BPA contemplates immediate termination of the NRC construction permit or withdrawal of the pending operating license application (the subject of this proceeding).
In addition, the vote will have no immediate effect on the Supply System's continued maintenance of WNP-1 in deferred status consistent with the NRC's " Policy Statement on Deferred Plants" (52 Fed. Reg. 38,077 (1987)).
BPA has agreed to assure funding for WNP-1 (and WNP-3) to continue the current project preservation programs and to maintain all state and federal permits and licenses in effect at least through January 13, 1995.
During this time, the Supply System plans to continue to study alternatives for completion, use or disposition of the WNP-1 project.
As we have previously advised the Licensing Board, one alternative which the, Supply System is currently exploring'is the potential for completing WNP-1 under new arrangements with the United States Department of Energy (" DOE"),
whereby the reactor would be used to dispose of weapons grade plutonium stockpiles through fissioning of mixed oxide fuel.
Because the Supply System intends to continue preserving WNP-1 and to study alternatives for the future of the project, no action is requested of the Licensing Board at this time.
We will, of course, keep the Licensing Board apprised of any further developments on this matter.
Sincerg:y, d
i Nicholas e nolds Counsel rfplicant cc:
Service List
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3OARD OF DIRECTORS
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RESOLUTION NO.1::72 3
4 A RESOLUTION TERMINATDJG NUCLEAR PROJECT NO.1 6
I On January 7. '994, the Bonneville Power Administrator recommenced to the Board of 7 1 Directors of the Supply System that Washington Public Power Supply System Nuclear Project No.1 (WNP-1) be terininated un u:e basis that the project is not capable of Mucing energy F
9 to consistent with Prudent Utility Practice, as that term is defined in the WNP-1 Project Agreement i
11 and the WNP-1 Net Billing Agreements, and the Administrator has since that time formally 12 made such a determination, and 13 h Managing Director reports that, on April 29,1982, by Eaccutive Board Resolution 14 No. 71, the Managing Director was directed and authorized to implement an immediate exanndad 15 construction delay of WNP-1 and that WNP-1 has been in a state of extended construction delay since that time, and 37 18 h Managing Director further reports that WNP l is approximately 65 % _-, and 18 that the Construction Permit for WNP-1 has been extended and remains in efTect until June 1, 2001, and 21 1
The Managing Director further reports that the WNP-1 Net Billing Agreements prtwide 22 l
that they shall tenninate on the date that the Project Agreement terminates and the WNP-1 24 Project Agreement provides that the project shall terminate when the Bonneville Power 28 Administrator and the Supply System determine that the pmject is not capable of producing 26 energy consistent with Prudent Utility Practice, and 27 28 29
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~.;c Manaring Otrector ter hcr recorts that tne tionneville Power Administrator has
! offerca to enter 2n:o an agreement witn the Supply System to assure conunced funding to 3 i j maintain WNP.1 in accorcance with the existing preservation program and to maintain all state 4 I I
and fix!cral licenses anu permits until January 13,1995, and
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el The Manacira: Director further reports that a Declaration of Nonsignificance based on l
7 l an environmental assessment pursuant to the State Environmental Policy Act has been submitted, 8 ! which concludes that termination will not have a significaat adverse impact on the environment:
NOW, THEREFORE. the Board of Directors of the Washington Public Power Supply 10 System hereby finds ano determines (1) that WNP-1 is not capable of producing energy 11 consistent with Prudent Utility Practice, and that WNP-1 should be terminated within the 13 meatung; of and pursuant to the provisions of the Project Agreement and the Net Billing 14 Agreements, and (2) that the Bonneville Power Administrator has offered to agree to assure 15 funding to continue the existing preservation programs, including the maintenance of all state and federal licenses and permits, until January 13,1995, or such other date that may be mutually 17 agreed upon by Bonneville and the Supply System, and (3) that termination of WNP 1 will not 18 have any significant adverse impact on the environment.
20 Based upon the foregoing findings, the Board of Directors resolves:
21 IT IS RESOLVED that WNP-1 is hereby terminated, and 22 23 24 25 DOARD OF DIRECTORS RESOLUTION NO.1272 - 2 27 28 29 30 31 32
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I T IS FURTHER RESOLVED that tne Boara or' Directors recommenos to tne Executive
- Boara that it proceca with termination acnvities as defined in the Net Billing Agreements and 3
the Pmject Agreement, including but not limited to the preparat20n of a termination plan, &&le 4
of fue.l. terminauon of existmc construction comracts, marketing of the project in whole or in 3
5 l part, and restoration or the croicct :ites to the level recuired by the appropriate regulatory 7 I agenctes, and aj ITIS FURTIIER K!'201.VED that the Board of Directors recommends to the Executive 9
Board that the Supply System enter into an agreement with the Bonneville Power Administrator 10 to provide continued fundinF ror the existing preservation programs, induding the maintenance 11 of all federal and state licenses anc permits until January 13, 1995, or such other date as may g
13 he mutually agreed upon by Bonncville and the Supply System.
14 ADOlrrED by the Board of Directors of Washington Public Power Supply System this 16 13th day of May,1994 16 is
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pident 20 ATTEST:
APPROVED AS TD FORM AND LEGALITY:
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Counsel 24 25 j
26 RESOLUTION NO.1272 3 27 28 29 30 31 32 6T-%M. '
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1 20ARD OF DIRECTORS l
2 RESOLUTION NO.1273 3
4 A RESOLUTION REQUESTING TIIE WNP-3 OWNERS COMMTITEE TO DECLARE THE END OF NUCLEAR 5
PROJECT NO. ~3 AND 'IT.RMINATINO NUCLEAR PROJECT NO. 3 g
7 On Januny 7,1994, the Hunneville Power Administrator recommended to the Board of 8
Directors ar' tne Supply System mat Washington Public Power Supply System Nuclear Project g
to No. 3 (V/NP 3) be termmated on the basis that the pinject is not capable of producing electricity 11 consistent wM Prudent Utility Practice, as that term is defined in the WNP-3 Ownership 12 Agreement and the WNP 3 Net Billing Agreements, and the Administrator has since that time 13 formally made such a deterntination, and 14
'Ihc Managing Director reports that, on July 8.1983, by Executive Board Resolution 5
No.152, the Managing Director was directed and authorized to implement an immediate 18 17 extended constmetion delay of WNP-3 and that WNP-3 has been in a state of extended 18 construcaen delay since that time, and 18 The Managing Director further reports that WNP-3 is approximately 75% complets and that the Construction Permit for WNP-3 has been extended and remains in ofTect until July 1999, 21 and 1
22 The Managing Director further reports that the WNP-3 Project Agreement provides that 23 24 it shall terminate when the WNP-3 Net Billing Agreements terminate and that the WNP-3 Net 25 Billing Agreements provide that they shall termmate on the date of written notice by the Supply
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28 System that the Project Owners have invoked the End of Project pmcedure in the WNP-3 27 Ownership Agreement, which procedure provide for the end of the project when the Project can 2a no longer be made capable of producing electricity consistent with Prudent Utility Practice, and
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1 2.e tvianaring D! rector n:rther reacris tnat tne donneville Power Administrator has l offerca to enter into an agreement with the Supply System to assure continued funding to 3 1
! maintain WNP-3 in accorcance wuh the existing preservanon program and to maintain all state i
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- and fedeal licenses' and permits un
- il January 13,1995, and 5 I y j The Manacing Director Orther reports that a Declaration of Nonsignificance based on 7 I an environmental assessme::t pursuar.t to the State Enytronmental Policy Ac' has been submitted, t
l 8 ! which concludes that termination will not have a significant adverse impact on the environment; NOW, THEREFORE, the Board of Directors of the Washington Public Power Supply 10 System henny fmds and detenmnes (1) that WNP-3 is not capable of producing electricity 11 constsant with Prudent Utility Practice, and that WNP 3 should be terminated within the 13 meaning of and pursuant to the provisions of the Ownership Agreement, the Project Agreement 14 and the Net Billing Agreements, (2) that the Bonneville Power Administrator has offered to 15 agrcx: to anure funding to continue the existing ' preservation programs, including the is maintenance of all state and federal licenses and permits, until January 13,1995, or sudt other 17 date that may be mutually agreed upon by Bonneyllle and the Supply System, and (3) that is termination of WNP-3 will not have any significant adverse impact on the environment.
20 Raw upon the foregoing findings, the Board of Directors resolves:
21 IT IS RESOLVED that the Supply System representative to the WNP-3 Owners 22 Commiume is hereby requested to propose to the Committee that the End of Project provisions 23 of the Ownership Agreement be invoked, and that, upon the vote of the Committee to term' mate 24 the Project, WNP-3 is hereby terminated and ended, and 25 26 21 2B BOARD OF DIRECTORS RESOLUTION NO.1273 - 2 29 30 31 32 4, A
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~T IS FURTHER RESOLVED that tne Boaro ot' Directors recommenos to tne Execuuve I Boaru that at proccea with termmation acuvities as cefmeo in the Net Billing Agreements and 3 1
! the Project Agreement includinn but not limited to the preparation of a termination plan, sale 4 I of fuel, terminauon of existmg construenon comracts, marxeting of the project in whole or in
, j part, and restorat:on ut the project sites to the level required by the appropriate regulatory 3 i 7
agencies, and 8
IT IS FURTIIER RESOLVED that the Board of Directors recommends to the Executive 9
Board that the Supply System enter into an agreement with the Bonneville Power Administrator 10 to provide continueo funding ice the existing preservation programs, including the maintenance 11 of all federal and state licenses and permits until January 13,1995, or such other date as may g
be mutually agreed upon by Bonneville and the Supply System.
33 14 ADOPTED by the Board of Directors of Washington Public Power Supply System this 15 13th day of May,1994.
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desident ATTEST:
APPROVED AS M FORM AND LEGALITY:
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26 27 28 BOARD OF DIRECTORS RESOLUTION NO.1273 - 3 so 31 32 1
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FOR IMMEDIATE RELEASE..May 13,1994 Susan Senner, Public Affairs ofncer Release No. 94 26 Mary II. Ace, Informauon Specialist Page 1 of 2 SUPPLY SYSTEM BOARD OF DIRECTORS VOTES TO TERMINATE WNP-1 RICHLAND-After 75 minutes of discussion and comments, the Washington Public Power Supply System Board of Directors at a meeting here today voted in favor of terminating the Supply System's partially complete nuclear projects, WNP-1 and -3.
In a nine to four vote, Board members agreed to terminate certain provisions of contracts between the Supply System and the Bonneville Power Administration (BPA) for the tw and abandon the possibility of the Supply System completing either of the projects as commercial nuclear power plants for BPA. The termination resolutions contain a provision for BPA to enter into an agreement with the Supply Systern to continue to preserve the plants until at least Jan.
13, 1995, or a date mutually agreed upon by the Supply System and the BPA, to allow for exploration of new missions for the plants, While termination signiftes the end of certain contractual and financial agreements associated with the projects, the Supply System's ability to contblue net billing for ongoing de service and termination costs from BPA will not be affected. Supply System and Bonneville of0cials stressed that this decision to terminate will not change Bonneville's obligation to pay all future debt service on the bonds issued for tbc projects.
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l-t Page 2 of 2 Today's action by the Board of Directors was piumpted by BPA, which reported to the Board in January 1994, that the need for new clectrical generating Irsources the size of WNP-1 and -3, which require large capital investments to complete, is unlikely.
'D e generating i
capacitica of WNP-1 and.3 are 1,250 and 1,240 net megawatta, respectively.
BPA Administrator Randy Hardy has agreed to continue funding preservation of the projects until January 1995. It is anticipated that by January 1995, the federal government may have made prelhninary decisions concerning disposition of U.S. weapons grade plutonium that may affect Supply System projects.
The Supply System announced in January 1994, a proposed couccpt involving the Department of Energy and the use of WNP-1 and the Supply System's operating Plant 2.to dispose of the nation's plutonium stockpiles by fissioning surplus weapons plutonium in these reactors.
With termination, the Supply System has several options to maximize any. potenttal l
returns on the projects, including selling the projects intact to an independent power piudGs.si, I
disposing of project equipment through an asset sales program, or n: starting the pmjects under a new set of agreements with another customer, such as the Depamncnt of Energy.
Construction of WNP-1 acar Richland, WA, was halted in April 1982, when the pmject was 65-percent complete. Construction of the 75-pcreent complete WNP-3 near Elma, WA, was stopped in July 1983. In recent years, combined preservation costs for both projects has been
$10.5 million a year.
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