ML20078M496

Advises of Termination of Util Projects 1 & 3

ML20078M496
Person / Time
Site:	Washington Public Power Supply System, Satsop
Issue date:	02/03/1995
From:	Counsil W WASHINGTON PUBLIC POWER SUPPLY SYSTEM
To:	Taylor J NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
References
GO1-95-0004, GO1-95-4, GO3-95-0026, GO3-95-26, NUDOCS 9502140100
Download: ML20078M496 (3)

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WASHINGTON PUBLIC POWER SUPPLY SYSTEM Po. Box 968

• 3000 George washington way e Rkhland, Washington 99352-09t? (SO9) 372 5000 February 3,1995 GO1-95-0004 GO3-95-0026 Docket Nos. 50-460 and 50-508 Mr. James M. Taylor ,

Executive Director for Operations U.S. Nuclear Regulatory Commission Washington, DC 20555

Subject:

TERMINATION OF WASIIINGTON PUBLIC POWER SUPPLY SYSTEM NUCLEAR PROJECTS NOS.1 AND 3 In a letter of May 20,1994, I informed you that the Washington Public Power Supply System

(" Supply System") Board of Directors voted on May 13, 1994, to formally terminate the partially completed, and previously deferred, Supply System Nuclear Projects Nos.1 ("EP-1")

and 3 ("WNP-3"), at least in their current concept. This action resulted in termination of contract provisions between the Supply System and the Bonneville Power Administration

("BPA") for the two projects.

At that time, BPA agreed to assure funding, at least through January 13,1995, for WNP-1 and WNP-3 project preservation programs and maintenance of all state and federal permits and licenses in effect. This allowed the Supply System to study possible alternatives for completion, use, or disposition of the projects, while maintaining them in a deferred status consistent with the NRC's " Policy Statement on Deferred Plants" (52 Fed. Reg. 38,077 (1987)).

Since May 1994, the Supply System has studied alternatives for the projects, including the concept of completion of WNP-1 to burn mixed-oxide fuel made from the Department of Energy's weapons grade plutonium stockpile? The Supply System also offered the WNP-1 and WNP-3 projects for sale to any interested party. As of the present date, no new owner or alternative use for these projects has been identified.

9 This concept is discussed in the U.S. Depanment of Energy Plutonium Disposition Study, Technical Review Committee Report, July 2,1993 (two volumes). Sg: als2

" Notice ofIntent to Prepare a Programmatic EnvironmentalImpact Statement for Storage and Disposition of Weapons-Usable Fissile Materials," U.S. Department of Energy, 59 Fed. Reg. 31985 (June 21,1994). 7 j gRo214ojoo 9502os p ADOCK 0500046o "( Q PDR 4

u Mr. James M. Taylor TERMINATION OF NIiCLEAR PROJECTS NOS.1 AND 3 Page 2 Tna Supply System and BPA previously executed WNP-1 and WNP-3 Post-Termination Agreements, effective June 14,1994. The Post-Termination Agreements required the Supply System to p epare amended budgets for each of the two projects, to prepare Project Disposition Plans, and to comrience asset disposition activities after January 13,1995,in the event that the projects had not been redefined or sold in their entirety as NRC-licensed facilities prior to that date. Accordingly, on January 26,1995, the Supply System Executive Board approved amended  :

Fiscal Year ("FY") 1995 Budgets and the related Asset Disposition Plans for WNb1 and WNP-3. The WNP-1 and WNP-3 amended FY-95 Budgets provide for the transition of the WNP-1 and WNP-3 projects from Plant Preservation Programs (Lt., " Deferred Status") to .

Termination Programs (albeit on different schedules). .

Under thm plans, budgets and resources for continued preservation of WNP-1 and WNP-3 will be reduced in a phased approach that maximizes presavation of assets. At WNP-3, the project preservation and maintenance program commitments, effective immediately, will be significantly reduced and re-directed to that end. The Supply System will concentrate its resources primarily '

on preserving the equipment for re-sale by maintaining storage environments. Maintenance will no longer be focused on equipment types (g4, maintaining mar.ufacturers' recommendations) t or on ultimate licensability of the project.

At WNP-1, storage environments will be preserved and maintenance of equipment by type will continue, although the latter often on a reduced fmquency. Because commencement of demolition and asset sales at the WNP-1 site at Hanford are dependent upon lessons learned at WNP-3, qualification of code equipment will be maintained longer at WNP-1. One incidental benefit of this plan, in addition to cost effectiveness, is that the viability (including licensing  !

viability) of the WNP-1 project as a nuclear uni; is maintained for a period of time into the future.

In parallel with the Asset Disposition Plans, the Supply System has also been developing a revised comprehensive Site Restoration Plan for WNP-1 and WNP-3, as well as for the previously terminated Supply System Nuclear Project Nos. 4 ("WNP-4") and 5 ("WNP-5"). The Site Restoration Plan is being prepared to meet the requirements of the State of Washington Energy Facility Site Evaluation Council ("EFSEC") and is expected to be submitted to EFSEC  ;

l in the near future. The Site Restoration Plan will call for demolition of structures and restoration of the sites to a level satisfying EFSEC mquirements. Initial restoration will occur l at the WNP-3/5 site.

The Supply System has begun an approximately six month process which includes the reduced staffing and disposition of assets at WNP-3, as described abov::, and selection of a contractor for the demolition and site restoration activities at WNP-3/5. Work will begin at WNP-3/5 as .

soon as a contractor can be selected and mobilized.

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Mr. James M. Taylor -

i TERMINATION OF NUCLEAR PROJECTS NOS.1 AND 3 Page 3  ;

4 Site restoration at the WNP-1/4 site will not begin until after experience has been gained at l WNP-3/5 and confidence in the demolition process has been established. There is, thus far, no  !

schedule for demolition at WNP-1/4. As wiously described, preservation will continue on l the WNP-1 project to the extent possible to maximize value of the assets, and incidently will j preserve the WNP-1 project for possible alternative uses.

In view of all of the above, from the psgtive of the Deferred Plant Policy Statement, both l the WNP-1 and WNP-3 projects are being transitioned _ towards final termination status. .!

I However, the Construction Permits (" cps") remain in effect and, in order to maximize the value i

of the projects and the equipment prior to site restoration, the Supply System is not yet requesting their termination. 'Ihe Supply System will retain the CP for each project until the commencement of site restoration. For WNP-3 this could begin later this year. For WNP-1 this will occur on a later schedule still to be determined.

i i We will keep you apprised of further developments on this subject, and intend to provide for your information a copy of the revised Site Restoration Plan when finalized and submitted to EFSEC. Should you have any questions or desire further information, the Supply System point  :

of contact for this matter is Mr. D.W. Coleman, (509) 377-4342. l l

Very truly yours, l l4h W.G. Counsil I

Mrmaging Director (Mail Drop 387) cc: WT Russell - Director, NRR LJ Callen - NRC RIV KE Perkins, Jr. - NRC RIV, Walnut Creek Field Office MM Mendonca - NRR l

Document' Control Desk - NRC t NS Reynolds - Winston & Strawn DL Williams - BPA/399 WL Bryan, Washington Water Power RE Dyer, Portland General Electric '

JR Lauckhart, Puget Sound Power & Light DP Steinberg, PacifiCorp i

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