ML20082U986

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Discusses Recent Newspaper Interview Discussing Effect of Regulations on Cost of Energy Production
ML20082U986
Person / Time
Site: Wolf Creek Wolf Creek Nuclear Operating Corporation icon.png
Issue date: 11/14/1983
From: Cadman W
KANSAS GAS & ELECTRIC CO.
To: Jay Collins
NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION IV)
References
NUDOCS 8312190244
Download: ML20082U986 (2)


Text

e KANSAS GAS AND ELECTRIC COMPANY Te4E ELECTFDC CCWANY November 14, 1983 Ek l L S O N u CADMAN w................~. m m,

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Mr John T Collins NOV 171983,!

Regional Administrator h

U S Nuclear Regulatory Commission Region IV 611 Ryan Plaza Drive, Suite 1000 Arlington, Texas 76011

Dear John:

It was good to see you and your associates at Wolf Creek last week during the SALP meeting. As you know, I take these activities dead seriously, and my staff and I will respond with action to both the written and oral reports.

I really didn't give you a complete answer to your friendly comment about the recent newspaper interview regarding Wolf Creek.

The interview was actually about 3b hours so you can well imagine we covered a multitude of subjects.

I did indeed mention regulation as having increased the cost of nuclear power plants, including Wolf Creek.

But during the interview I also mentioned that regulation had increased the cost of coal plants, and all utility construction for that matter... federal and state, EPA, water regs, coal mining, land restoration, black lung fund, etc.

The major point that I mentioned as to regulaticn had to do with Kansas laws that expressD prohibit construction work in progress.

That is, of course, something that you and your folks don't have to deal with, but from our perspective, is a factor that has one of the greater impacts on costs. Some 30 states allow CWIP in some form, and as I've mentioned, in Kansas it is expressly prohibited except for equipment that can go into operation within one year's time.

/ '.

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8312190244 831114 PDR ADOCK 05000482 G

PDR 201 N. Market -Wictuta, Kansas - Mail Address: PO. Box 208 I n7chita, Kansas 67201 - Telephone: Area Code (316) 2616331

,,s To illustrate that, all Kansas agencies are under a sunset provision and are required to be audited by the legislative post audit division. At the last audit of the Kansas Corporation Commission, the post audit division accountants concluded that the lack of CWIP added to the cost of the Jeffrey Energy Center (a coal plant of which we own 20%) and Wolf Creek by $1.2 billion dollars, I believe the part added to Wolf Creek was on the order of $800 million.

I'm sorry I didn't expand before the group last week, and thought you would be interested in those numbers. Again, it was good to see you at Wolf Creek last Thursday.

S ncerely, l

/h h

WKC/jh

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