ML20090A600

Summary of 780213 Meeting W/Util in Bethesda,Md Re Util QA Program Topical Rept Changes

ML20090A600
Person / Time
Site:	Midland
Issue date:	02/16/1978
From:	Belke W Office of Nuclear Reactor Regulation
To:	Deyoung R Office of Nuclear Reactor Regulation
Shared Package
ML17198A223	List: IR 05000329/1981014 IR 05000329/1982013 IR 05000329/1983008 ML20090A052 ML20090A064 ML20090A067 ML20090A071 ML20090A076 ML20090A080 ML20090A090 ML20090A103 ML20090A106 ML20090A110 ML20090A367 ML20090A377 ML20090A397 ML20090A403 ML20090A447 ML20090A451 ML20090A456 ML20090A465 ML20090A481 ML20090A487 ML20090A491 ML20090A500 ML20090A504 ML20090A514 ML20090A517 ML20090A543 ML20090A547 ML20090A559 ML20090A590 ML20090A594 ML20090A600 ML20090A613 ML20090A614 ML20090A623 ML20090A626 ML20090A631 ML20090A637 ML20090A642 ML20090A656 ML20090A658 ML20090A673 ML20090A698 ML20090A703 ML20090A733 ML20090A741 ML20090A748 ML20090A751 ... further results
References
CON-BOX-13, FOIA-84-96, TASK-17, TASK-RR NUDOCS 8006240684
Download: ML20090A600 (2)

Text

'7..'l&;.,-N5.W" tR. ). -M ?.~".}9. M

'~

~ g ~u w =.. x.

..:. w.-m "

+

M..

Docket Hos.: 50-1S5 FEB 16 $78 Wi jj

. 330 h

HEMORAHDUM FOR:

DISTRIBUTION

.3 !

.'FROM:

i W. L. Belke, Quality Assurance Branch

' j' SUBJECT

SUMMARY

OF MEETING HELD FEB 13,1978 RE: CONSUMERS w

POWER COMPANY'S (CPC) QA PROGRAM TOPICAL M

DESIGil. CONSTRUCTION & OPERATIONS H i A }

On February 13, 1978 CPC's changes to their quality assurance program topical re C4 d

a.

A list of attendees is attached.

sed.

Following are the significant points discussed at the meeting:

t 1.

'CPC explained the purpose and benefits of recent organizationa relative to the design, construction and operating quality assurance.1 organizations.

tion coverage.d strengthen site quality activities by involvement an g

2.

HRC discussed some cocraents resulting from their review of Revis (dated December 12. 1977) to the CPC QA Topica1 Report.

. n..

(fD! '

.<-J. At the conclusion of the meeting NRC staff stated they will review the

" '- Dececher 12. 1977 and February 10, 1978 changes to th N

document the results and request any additional infonnation and/or c tions from CPC, if necessary.

ca-oricical signed bys

.3, C. J. lieltemos, Jr.

g W. L. Belke DISTRIBUTION Quality Assurance Branch r

LPOR Division of Project Management C:ntral File QAB Projects RCDeYoung, PM Meeting Attendees DJSkovh01t. PM JWGilray, PM

_r~&

l_

CJHeltemes, PM

[

gp/dD@6 k

[,[,

(

W1.Belke i

(

K/7 47 E

_WLHelka)h j

_0PMt0AD C

- -a -*

t 2/16/78 mean m m mcw m.

h......

r l

NI b N. 'h,5.

Y

,,..c._

. + - - ~ m x n..- u, w. _,....,_

. m,E E,S,~ ~",,,,", ', _t"' - ~ ~ -

gv. " - ;,, ;.,.

b... u....... v--.,, MEET.IN, G, -~A,TT.f.

ND

-~ -

,~

,.....'u'..--

~

!*.dctn; t".9. Censumers Power Corgary..

february.13,.127?',..

x-i M-e s

'3

+

i

)

j Consumers Power Company _

b

4 c'.*

. -> j l

Dave Bixel - Nuclear Licensing Administrator if I

Jack Fremeau - QA Operations O-Ben Marguglio - QA Design and Construction 1

. e.

\\

learch 7.1978 i

Ducket its. 50-329/330 THIS DOCUMENT CONTAINS pg @M' PAGES I

c I S ORANDUR FOR:

James R. Tourte11ots. Assistant Chfef Nearing Counsel. ELD F113:

Roger 5. Boyd. Ofrector. DMI

SUBJECT:

ESTDttTED ColtSTRUCTISI COMPLETION DATES FOR i

NIDOWS UNIT 2 I should like to advise yes of internally-generated information uhtch potentially could be relevent and material to the Midland proceeding.

The subject relates to our estimetes of when Nfdiand Un1t 2 (the fIrst of the Midland units scheduled for completion of construction) can be expected to be completed in accordance vith the application, and other-wise ready for fuel loading.

4 The latest estimate, presently under study by the staff is not yet developed completely. When it has been we should provide the Board with our essessment of the significance of the information in accordance with our evolving Board Nottffcation procedures.

As you will recall. the staff testiffed in February 1977 that, at that l

time, November 1980 uns a reasonable Jata for cogletion of Unit 2.

1 Amendment 33 (F5AA) to the appilcation, docketed November 18, 1977-i gives the app 1fcants' eartfest and latest dates fbe completion as Octsher 1.1980, and October 1.1981. respectively.

The "rsfnbow r books" published by H!pC (Sles look and Yellow Book) carry an esti-mated fuel lead date of November 1900 for Unit 2.

In late 1975 the IEC established a Caselend Forecasting Panel to pro-vide estimates of fecemHg CP and OL applicattens, and when individual fnc111ttes seuld be ready fler operetten, for bedget and wortload plan-tog porposes. On Revember 15

.j.

fostructed the Casaleed Feroca.19T1 the Esecutivs Director fbr Operations

'M,-

sting Penel to develop and refine a ces-sistant fWrocesttag methodology and to provide periodic caseload fore-casts that ces14 serve as the stegle searce fler internal and external esars. Although this activity is est directed to the Ridland units.

\\i er any other particular fbet11ty, the studies and the results of the Panel's effbrts will provide construct 1oe completion estimates on all

\\

facilities under construction, based on a set of standard assumptions that can be applied to all flac'11ttes..

f

...~. :.

-Sici 15V#T2

• 'd h"

....t,. -

, /

• • .*a

. - - - - - - - - - - ~ ~ ~ ~ ~ ~ ~

c.~

.:.,g..e. w,..w $. 4-.:. _.e m e;.:.+&.

w, w :,r:<

c. s?. M:,:. : g m y r y 1

.o'.

...:. m m..qq

..i -

.v w.... q ~.. r, a y m c

.r v.

7

-. y e

Jrise R. Tourte11ete.

l In the course of the panel's present study. the luut project staff uns asked to comment on the Paeol's est recent projections. The Nfdland Project staff identiffed tuo estimates of construction empletion for the Midland units generated by MIPC which differ from the staff testi-i mony in the proceeding and from the infornagon carried in the rainbow books. In April 1977. hosed on February 1977 data and assaing the plant uns 235 complete at that time. t.'.e MIpc made a generte estients i

for budget planning purposes that Usf t 2 ersuld be ready to lead fuel la August 1983. A second generic estfunte was made in January 1978 asesing 385 coglettaa of construction, with the conclusfon that lety 1952 should be used fbr budget planning purposes. During this tfas. N!PC's monthly Construction Status Report on Nuclear Power Plants l

(Yellee Book) contissed to carry the Noveer 1980 date.

The Ferocast Penel, using a stands:d madet for average plant construction duration, has established faitfally a May 1982 fuel load date for Unit 2.

i It is in the process of refining this estimate, as well as estiences for other plants. taking into account plant-specific factors that mold provide a more precise estimate.

Regizing the verfations of these general estfastes with the dates prov' dad in Amenennt 33. and the fact that these estimates potentially affect certain issues in the Midland proceeding, we plan to do a more detailed plant-speciffe analysts of the best estimate fuel load data for Midland Unit 2 and will provide the results to the Forecast Panel.

the utility, and to yes.

i c e. w...e By Rogar S. Scyd Roger 5. Boyd Directer Divisten of Project Manegment Of stributton '

/'

Central FHe D. Hood '

NRR Rdg.

N. Grosman RS8oyd Rdg.

W. Diestead BD Notification File

5. Kari E. Case H. Berkow N. Moseley A. Abell R. DeYoung L. Crocker D. Yassallo 5 varfi l

e m.n R5N:Is M '1 l1n w

~.

_--_,.__-,.-...-,--_-m,.m

, - _ _. - -., _ _ _ _., -. - ~ ~ -. _, _ -. - - _.., - -,,, -

c,--_-

l l

g

' * /%

m IIUCLEAR REGULATORY -80f0 l

i su m amsro= a c.senes k...../

EAR 161573 Docket Nos.: 50-329/330 WOIANDUM FOR: Steven A. Varga. Chief. Light Water Reacters Branch Mo. 4 Division of Project Management i

FIEM:

Darl Hood. Project hager. Light Water Reactors Branch No. 4. Division of Project Management

$LSJECT:

FORTMC211NG !EETI's TO REVIEW MIDLAND PLANT UNIT 2 CONSTRUCTION COWLET!0N SCHE 3fLE Date & Time:

March 21 & 22, 1978 (Tuesday &'e hesday) 5:00 a.m.

Location:

Rtdiand. Mienigan

Purpose:

To evaluate the sche:Nle for c:roletten af construct'on and fael load cates for Ridland Unit 2.

Participants:

54C - L. Crc:ker. DPM; D. Hood. P; W. Reinn th. !&I; J. Levelace. "!FC; T. Vandel. 132; et al.

ConsEers PMr (c. - G. (eeley; Cthers as Eldf be rt:aeste: Car 9; the review.

n k* f

arl Food. M..'e'.t "J'aler Light 'estee :ta:tcrs Iraeca 'ic. f.

Division of 8*: ject .amage-ent

Enclosure:

Agenda ct.:

See mest Page l

i

-80 SYe 1 o gyg g

t l

l i

i g

7he meeting is part of an evaluatfos being performed by the ll IRC to determine best estinate dates for conpfetion of I

construction and fuel loading for Ridland Unit 2. the earlier j {

of tw units being constructed. On Mar. 8.1978. the naC i (

advised the Atanic Safety and Licensing Soard of variations in 1

estimates by the MilC's Caseload Forecasting Pawl. previous estimates carried by the staff in its " Yellow lock". and estimates by Censumers Pomer Campany in Ameneent 33 to the appitcation.

Recognizing the variations of these estimates and the fact that j

these estimates potentially affect certain issues in the Mtcland

{

j hearing, the staff is performing a sore detailed plart-specific

)

analysis. The staff also views the evaluation to be relevant to i

the request by Consumers Power Company for eatension of Constructicn Pernits CMR.41 and CPM 82 as rer,uested by Arieneent 33 to the j

application.

I I

l f

I l

r i

I I

i 1

i r

- -,. -, -., ~. -,

c..-..--.~----.

.--,----n_,--.,-nn.

e eens Qtichant I. Riller, Eng.

I e ma. Lincoln & Beale a dte 4280 o

risse meism.1 etas.

-l chica-, Illinois E470 I

I

.hdf L. nacon, tag.

Managing Attorner Ozusamera Pcwer C:mpmy i

212 West Macn1gwt A.i.w Jackson, Micsigen 4)201 I

fer. Psal A. Perry i

Secretary Consumers 65w Ccr.my

+

212 W. Mient,an Ann.=

Jactacn, Micn1,an 412J1 Nasard J. Vogel, Esq.

Enittle & Wgel 414 riour Esenange 5211 ding Mimeepolis, Ms.1wsota 554' Myron M. Cherry, CM.

One 181 Plaza Chscago, 1111nc:s e.4 1 I

tieneracle cutt Se.mi:ber Attorre/ Cem eal State et se sas Tep,ea, Ransas M412 Irving Lthe. E q.

Deally, Laite and.*4 Madre 20e e t Main $*.re t j

BatyIan. New Yett 11N2 James A. Re%11, t o.

Carrte arv r~da;1 a

135 ?P.ctn 521tr.h :.n Midland, Mac.11 m into L w:s d. Prtet!s,4.M.

Mach:1tn Otvtam taal Deparuwr.t 47 Bus!ditwp Dow Owencal '.74 M.'dl a M, M ten t }an 4 M u e~

l fN h.Depeny l

8 l

ecs (continumf1 I

t h h, T.sg.

Richigas Divisicre The Dew Chrezcal Cassierf 8 anmae Ridlad. Mi;as 48640 i

e 1

i f-e 4

8 t

l 8

O 4

i 9

h.

n N

b g

k

\\

\\. '

.. \\

=

'g 5

3.s g5 49 g

g 3

s

• l I

t E

N.

I

\\

s%

g g

g n

. *-J

.s +

l

\\

\\

'4

,~

-s

' \\

% 1'

~

'g g s.

k

' i 4

M g(,.,

9 f ens s4-4 T..

9

.g

-s e

v y

Af p

n v

g V

,\\

=

...__v.

.5

- - -, _. - =,,

.~e--wwwww,***-

3--ew-v-+-erw=-.e--.F '.-se v-aw.w--wwe.=we=*er--e-m -

---

.--~-w=--se%---

- - + - - - - - - - - - - - - - - - - - - - - - - - - - -

t 8

ATTDCA.EE LIST March 21-22,1978 i

Midland Site Meeting i

l Licensee 4

S. S. Keeley Ccesumers Power Car.,,any, Project Manager

7. C. Ccoke Ccaswrers Power Coc:cany, Project Superintendant C. R. Kline Censumers Pwr Coecany, Project Cont 71 Supervisor D. 3. Johnson Constars Power Company, Constructicn Centrol Supenisor W. G. Jones Bechtet, Project Cost & Schedule Supe

• visor RC W. H. L:velace MIPC D. 5. Food 1:R, Midland Prefect Manager L. P. Crocker NRR, Technical assistant to DFM T. E. Vandel R:III, Project Inspector R. J. Ccok R: I!!, S-site :nspector (desiree)

• • E. '.'. K. L ee R:I::, Inspector

• • E.

. icica R:!II Inspectcr March 21 only

• • C:ntacted, but did not participate in :necting M*

1 S

1

~

ATTAC. E !* A

'o l

UNIED STATES OF AMERICA NUCLEAR REGUUTORY CC:ff!SSIC:t EEFORE T<E A-.MIC SAFETv AC LICE'IS:'IG 30MD

~

In the Mattar :f

)

)

CC3 SUPERS PGER CCI941Y

)

Cocke: Nos. 50-329

)

50-330 (Midland Plant, Unis I and 2)

)

RE70K* P:E?ARED Sv S. FE'.3 410 W. GUNDERSD FOR T-E ATCNIC SAFET' AND LICDSING 3 CARD CN ALLEGED CISCREF#iCIES BET 4ED CCNIUMERS FGER'S RATE FILING OF JANUARY 31, 1977 ANC TES !TNY F:.ESDTD TO 7E ATCMIC SAFETY ANC

. CDS*:lG 3CMD ::1 HE MICLA 10 :10CIEC:NG Intr:duc-1:n

'he Suff, as cirecud by ce A:c::r.c Safe:y and Licensing Ecard, has reviewed ta ra,e fi'ing of 2nsureas Pcwer Cce;:any (Licensee) before the :tichigan Pus 11: Servi:e C:rrissien cf Januar/ 31, 1977. This rate filing is essen-

f allj a de.aited j.stifica:icn fer rate revisien :n :ne Ccesumers :>er's sys ters. Counsei fer All In*arvenors Exce:t Ocw (Interverers) has c arged

nat significan catradicti:ns exist terneen *estimeny prov! dad to =e i

4::znic Safety a-d L'cansing 3 card by te Licensee and represen:sti:ns made

e'cre the Micnigan :ublic Service Cce:nissien in tne rate filing.1'/ Clearly, ii similar informa:1cn and analyses de a::cear in *ne informa:icn filed in bom i

pr:ceedings and cernin dif'erences in treatnent can be cbse ved. Mcwever,

)

i te Staff review c:rcludes mat:

l E The allega:icns.ere mace at : e :' ara 22,1977 heardng sessicr. in :nis proceeding at ~~. ; ages 5033 creugh 50 5.

l I

,.-,,.__,-m_-

y w-9:._-m yw--,-w.

y,.g-.yg

+,pw,mq,yy-,

mc-r-.,

m.m.,_,

,ma

-m..,,.,.

A-

i

~

n 1

1.

The discrepancies have a negligible effect en the conclusiens reaced by the Licensee in this NRC pr:ceeding and in no way I

i would 11:er those c:nclusions; 2.

The discrepancies do not prcduce any sys ama:ic stas, i.e.,

i

~

l where differences were cbserved, the different treatrent in the 'tRC preceeding was not always beneficial to the Licensee's case relative t tne treat:2nt used in the rate filing; 3.

• he :iscre:ancies, wi t ce exca::f:n of a few -ince erers, are fully expiainacle in tna: cey ei-her reflect (a,' a tasic

niicsc;nical difference in =e intant of the inforta:ica ;re-sentad, or (b) cifferencas in the cut-off data used to precare the analyses whica precluded the input of core recent infor:ation and anage.ent decisions.

Staf#.ieview of :~e January 37. Ig77 Ra:e Filine Tne Staff has iden-ified those areas in the rate filing that ecntain ma arial relevant to testirteny presented by the Licensee in the ':RC precee and has reviewed them for c:nsistency. This review included meetings and discussions with the Licensee in order to cbtain additicnal infermation.M In all, five areas for review have been identified:

2 A reeting was neld be.seen the Licensee and t*e ':RC 5:aff in Chica cn Acril 5,1977 De Licensee has provided ca 5taff wi M infor-ation it recues:ed in letten; of April 13, !977 anc May 10,1977 (distributad

)

at hearing on that data) fr:m tne Licensee to the Scard with c:cies i

to all parties in th s pr:ceeding.

~

~

h 3

1 1.

1eec fer ?cuer Screcastad eae ;y and ::=er I:acs, anc

~

upacir; ;iar. air.g. s:ecifi:all! :**a* en cf sa'es *C C3-c:s

}

and municipalities, and plans to tac:crarily derata Palisa:es;

.a a

_'t 2.

Alterna:fve E:: erg S:urces - Coal fieed ge-erati. g plants,

}

specifically ;rcjectad : cal : rices; i

\\

]

3.

Sjsum :ai's:iif r/ L : :eser.e argi' kaiysis - 5:eci'i:aiIy ine:m :u n;e caus;

+

=

=

4 Ss: of Replacenant ::wer (delay :cs s) - s:ecift:ai!/ :ia ned

2:acity, fossil 'ue' ::s:3 :utage rates, senecuied ain:arance, eat rate, sa'es to :3-ces Inc manic':alities, nucitar fuei c:sts, and usa of diffe~.n: cccis.

-=

5.

Treat =ent of Cec:missi:ning Dsts.

l.

MED.:CR PC'nIR erecas:ac Energy ar.c 7:wer L:acs anc Ca:aci y :'a--ing The natarial in the rate filing pertinent to these issues egetar in L

the direct testircny of *r. E. H. tai:er, "r. J. M. Brager, and

'tr. 2 L. Sickel.

E A.

FCRECAS'EC DERGY EC FGiER DCS In Sr. J. '4. Scager's testi: cr./ :. ere is a :iscuss' n of :r:fectac Icad facters, enten sales, ePer;y rMui-rents, efficiercy 'act:rs.

s 4.

m :eas Tu gr a.-:s Or.7 !iM. Sese e e'.es, as e'* as ':t r sis::;ss*:n cf T.es, a t.

'eu'y := sis *.zn: #

- e.*:a see' :

resaretati:n at te TR *ea+ts.

s W. 7. '.. Siciai's asdzny me e is a cisc;siice :# *:rtcas accc ico and :r: ected ;ran emy: 1526.y af:e es:xer

! ass. ~his :mese=uti:n f s nui?f =es*i =-: mim te 'a-=

iii TiF 4ac=en: = re I-.' :n.t-u' 2a::r; a-d Te :' tc;.ast _

c' 2.. 3':ke! a: - a '.40 tar- ;.

l I

• s W. E. 2 4f ser's tast ?cny, : eat icac ce and f: tcasu a t

.;sec is its E. n'ti: 2 :: :emi:: pr jectec -ese ve arras. Te

eat i:ad ' rtess: 1s 1: artist to ma: used by w. frager and f-e et 12C :r.ces:ing.

3.

CA74C."7 P.htNIX Wf a ressect ts cacadr/ 3:anning, *r. 41sar's Sc ecule ti a:ce t is me ata a;sli:a:1:n mccr s Wor capacitj acciti:ns, enanges,.

and etirements 2nugt: 1986.

. N siamiec sa'a :f 50 W :f Casteel; 3, I 4 % of '41:Ia.-t 2, anc:

98

• cf taland i are ':antin' as be.neen =e - :a 311'95 and C7's ca:acity 314cnfr.g as :es:rited 1: m e 14C. earing.

e en

.y

w.,.

r

- c

..w..

.__.i,__<.,.

.,,,__,y.,

p s

5-W. taiser's Schedule Fi re:cr s tne e:trecent of :tre:w I anc 2 1

l l

in 1982. This resulu in a ree:.: tion in ca:a:1:y :f 55 '34.

Sis cecisia: was reacned aftar 2e '.icensee filed its asti cny in ce MRC proceedin[ and is'not incer; crated in the Licensee's case before the NRC. Fewenr, if it had bee, it wculd rave l

resulted in a ; rear need 'er F.i:iand nan was presentac by te l

Licensee.

'e. <aiser's icedu!e :I ; esens C-'s cet 02:1:ili y

-:q !!!5 -

r me felicwing :ifferencas are nc ac :emeen mis e.tnihi: anc va' es 1

t.sec in the NRC precaecing:

)

1.

Rata 'iling incica as an acetti na il.W :erarng en Pa:isades f :m ISU thr:ugn 1980 :ue to c:ci'ng ther recui ennu.

~

i i

2.

Rate filing indica as a 10 A derating at 5f g R:ck f ca 1

1977 thr ugn 1381 :ue u ICOS lie.intions.

t 3.

Rate filing indica.as re-irement of Morre,1 anc 2 ccanencing in 1983 of 66.W.

A' The tastt:en< of Oe Licenee a-: the NRC Staff -e-e fi'e: 1,-Mis ce:caeci g en Never:er 5, :975.. inal dectsiens # n regard u te ra:a case a::licati:n were not reachec :y :ne Li:arsee artil -id ::

ene Cecer:er 1975. Wcated at Mal was ne: :resartec in tne ':RC croceeci ;. as in e acts aere.'adged by te Lica9fte I :e i-sis-if' !n!.

Tne Staf' c: curs t, tais ::rcl.sien reacned :y =e Licersee.

m

+,

s-

s 4-

e cave nree i.eas a e no ::nside-ec by te Li2nsee in.ne 9

'IRC :r:cee:ing becaese rey wee :acisi:ns.ade afur te esti-2ny in :ne NRC :-oceec*ng was fi;ec.

(See f:ctaca 3,.

He:ever, if Cey ha: been incer;:ratec ints :te NRC proceecing, each item wcul: nave enhanced tre Licensae's need f:r the Midland : nits.

i 74 acdit :nal ciscreca :ies exis: because de rate filing is as ' a:'n:.cn e re: ca:abit-y e-tas -- '!P.C :*::E!ci g #5 ::n-

er ec.vi--

ne sser e: ca: :it::y.

ey are:

53:*'s, =er

ersu; ar: a 153 "4 recuctic-in net caca:ility in !!23 tecause

na :crti n of :ne Lue:19gter sale tar ifnates in accust of 1923.

Bus the ate filing s cws h ;ner cacaoflities tecause -he sme dert:e is 9c a::Ifcat'e :: winter estima:es ace rereas

e a: iti:nal.' ccing :n ca:a:f y a'*1 de availa:*e f:r - e v n ar i

i

eat Of ig33,1 =111 n:t be zvailtbie for that year's s.ner ;eak.

l T9e Itaff agrees : hat - e sumer : eat is :ne relevant peat t: use in :.s NRC :r:ceecing :: detemine reliacility anc that t'ese diffe-ences are *uity j.stified.

A :iscussi:n of re sser :ers:e i

and termine. fen ' Ludd ngton sale a: pear in the 'icenst.e*~s Envir:neerul '4e:crt, p.1.1-?], and Table 1.1-8, -es:ectively.

• n a" c:.'er res:ects, '-:iuc' g he :r:cesed ders:ing :f :ne

?slindes '.ni: d.e :: suam ;rers::r : ti c :r:bie s I-**4 i-1975.

i II 3 addi:fcnal 'n 1973 and !EC, acc a ::: c'ete :u: age i-I!!

1 1

and :382), :ne este fil 9g anc C?'s :csi:1:n at ce ':RC neari q are i

ident cal with resce.ct : ca:a:ity o!!nning releva.: t: eed #:r :cw r.

d e

s I

i

.i1-

s 7

2.

AGR"IlE EiES7 ICUF.CU 3-ajectad C ai Fri:ss t

Fr:jected c:al pri:as are in:rtant t: -he ';FC case in rac aj:r respects: c:41 prf:es t cac: :n de ::st Of.*1felanc vs. ::a! fired alterna:ives, and ::al crices f:npact en the c:st of delay as used in the :r:du: icn ::st runs. This dis:ussion is li ited s:lely :

the treat:ent o' c:a1 ;rf:es in the ra e filing as : hey relate.:

t e alta -atises a aiysis. ? cre te 3' lac :iscuss':n :n ::a!

Or*:es as rey i :!:: :n de ::s:s :f :ein/ wi'i :e :-esactec i-Secti:n a cf thfs ~.:ct.

FO-the alte atives aralysis, the : s: cf aewiv ::-tncied c:a' 1

is the relevant cersidera: fen and the :esti=cny by 4. R. 'Af'kensen in :ne "RC nearinc :rovi:es re basis 'er - ese :r ;ec ad vaiue3.

The dis:ussien :n ::al prices in the ra:a filing a : ears in :.9e di-ec: tasti:icny of.'4r. J. M. 3rager ard.W. J. E. 7an Recen.

Their c:ncern is :: Oreject ce ex::ected avea.ce ::st Of ::a1 fcr each coal fired uni: on the C7 systet. These data are necessary to estimate revenue requiremets which are, c' ::urse, critical to a decisien en ra a relief. They are not, 9cwye, c::: arable t:

tre esti ates cave'::ec by R. 4fikenscc. C*early, e averace ::st re'lects a r/rf ad :# fa:::rs ' sediti n :: :ne ::s: :f newly ::n-tracted c:al. Fcr exar:le, re va';es :resar.:ed by 3ragee and Van Reem mst c:rsider 7,e -ix temen ex's:ing are ew ::n:ra:

c:al, the point in time at wh'ch new ::ntncts replace old Ones, t

e

~

l.1.-

s i shifts #r:c nign sa # r = la sulfur c:a!, anc s-i#ts in ::a' su:olies fr:n cce ::a-t := ancte.

Each cf these fact:rs will cause de avenge :-ica and resulting escalatica nta t: vary fr:m t.*:sa used by Wiikeas:n in 5is tas-i=:ny.

7atie 1 : resents the ':recas:ed c:ai : rices by :enentin;.:'an: f:r ce seried 1977 emen 1362 as deci: ad 'n ce nta ff 'ac.i e

ef'ac: -' ::esa fac::rs :an te see-ry rev a,' : seversi :'. e e

\\

da u : ints.

For exarole, the : rice of deifverec ::ai a orn i 12 is ':recastac to increase by !!=:s: 55: beTwen i97' and 1978. If an exis:19;

c:ract 4 -e t: te in f:r:e bedeen nese r e jean, :ne.c:::

4 ex:ec: escala:f en Of 12", :asad :n 'if eensca's 'as-* :ny, a.gver, c

in actuality these units will begin swit hing :: 1:w sui'ur c:a1 in 1977 with c:nolete ::nversi n by 1960. Thus, te resui:ing va he cf 51.31 whicn ae;: ears in the rate fi'ing -efiec s na: : rti:n cf iCarn's c:41 sue:1y suefect to the hiper price of this new hw sul'ur coal.

i l

l Altarnativelj, ce rate f*'ing shens ' ass than a 2" esca'a:i:n. a a in :se! deliveries to 3m: bell ! & 2 i,173. ~his esca'a:i:n is i

l

. ell teicw 'Jilkanscn's assumed '25 escala-en because icwe* Oricec

cal from Weadocx 7 & 3 will be divertad : Camaceli I & I in 1973.

i.

Testinony of J.:1. 5rager of C:nsurers hwer C:. bef:re t3e 'ficnican i

Public Service Comissica, January 18, 1977, hhibt: ?! 3.

~ - - - - - ~ ~ - - - - - - - ~ ~ ~

1 71 le 1 - Coal : ices Ra:cr-in Ra a.:iling 1977 1973

79 tesc 1991 12 g

(CCST IM CE'C5 CER M!LLICM 3.T.U) l

lete:cx 7-2 100 145 1-2

'73 2C6 227 4rn 1 2 117 181 199 2'8 211 255 t

.y...4.

"2 i:'

' o~

722 7'-

~~a

--s

.6

.,e

. a.,.

.-o 1

3

,3,

.2 2.

2..

i-

.e C::: 1-5 100 137 lia

!!4 2'd 21; C ::teil 3 222 255 3CZ Fr *. ese ea s:ns, it is

:c:sible.: ::m: e: elf -sc:rc' e 'it'ke-s:n's es-iratas :n new scur:e c:al wi n 2e c:ai dau =resentac 'n : e ra a fi;ing. !.:ch a rec:ncilatien is ict acnfevabie >< 2: :ur:cu-f:r whi:5 1

the c:al c:s cau are heig usec are di'far si: in *.ne 0.vc :r:ceedigs.

Fr the -::e filing, aversge ::al c:s: can i:r esca C? an': is % fred.

7hese c:ai cosu reflect the sany fa:: rs discussed ateve. Fcr -he "RC pr:ceeding, the n;pr priate c:a1 ::sts f:r an alternatives aralysis is ths ::s c' newly centracted 03'.

Ic -nile. e ::ai ::s:s di"er fa tre tw receectngs, t'e a: 'i:at'en :f each is c:r"ct.

e M

l e

o i

-lC-1 It shcuid ::e furtner ici.7:ad u: nat =ere is an e.c:':10 suta> e i,

'lan :eenen's tasti-*cny : hat in deve cci g nis esti aus, ce assu. ec -sa'

rica increasas :r.,, annual,.j r.a r. n.

and. 3..,.2, and, anc*.a..../,.:-

o 1979-1382. 71ese rea; price increases recresen: 2 e exa:: rea! pri:e increases ; sed by 'Ji.I'< ins:n in his testireny be':re ce yC.

~1u s, in i ' e acsciute ::ai ces:s in :.4 ::c pr:caedings :a/ dif#er, =a : et. er: :#

esu!ati:n is ccesi: tent.

i t

.., --. u.

.:.:.,-..,.....,... c s.:..r.<e..,......,e..

i l

=

. tees-i;ad :n re. sated O.a: Te usa :f ca.:::n =nge r2 as f :y :: s nas i

Pcwer ~=:any fcr ce de'.elc=ent Of recuf-ed resarie seg'ns.,as essa ::il */

I censistant in :cta the ':.t hearings and tne Januar/ 21, 1977 1:a 'it' ;.

n t

tou casas, :::e ':cact :f his Oric cunge raus and ::r::ectec :uu;e caus.:as avaiaated s e#1ac ce sensitivi':y sf r:n::: Ou z;e ra:2

'tariatten: as re:n ad - ce re:fiet;f y cf t e sys ar:. 7 e :nly in::.-

l cuu;e rata variation bet:eer! data saployec f:r :?.o rata fild g as :=: arac tc ':e 'ticiar.d case was ::e assigned hist:ri: rar::r cunge -tu c' ta 3ig bck Pi :*J) unit. 7:e tedern :uta;e can f:r 5'; bc:<.sec f:r : e

..iciand hearings as 23.5, as c:rpa se :s !3.5% 'n -he Inuarf 21, :377 rata filirr;. This hist:ric rita of 18.65 is de correct nunter and fis ac:li:sti:c..in the Midiand ;:r:ceedi g testi : y ecuid 'sior e da ay :f l

I U and:rs cuuse estes ' :lu:e forced :un;es are sacr:.:er 1 ai :en.:a l

i Outages. Sher:-tar-sinucance =nges e, in e#'ect, #:r:e :un;es

at can te cst:crec ::y:nd the nex

-eetend f # 9ecessary an:, t. t e#:et.

s not affect ::: era:: ; -esarie recuf r ea s :.:.s: :s 't:::rt: i ::

required installed reserte calca:ati:ns.

I 1

1 1

i e

+w-

-w,---

y-mw

-ww-,e-w-ww-wwy- - -,, -r-s,w.w--wwwe r-ww w-ww w -ec w y ww~-e-y-,w-w--e-www.yw-e,w-.----sesy-

-e-y,gur-ww-r-e-iv w w wemy'wwwswr'--

N'e

--'*w--ev"w-D'"-

• ' ' " +

l i

s re Mid:and Units :ut <uic :e regliga::e a:!.s-en: resu'-i g ' a decrease in reserie margin recuirt'e-s of :nTy :.B.

l j

Cther ainer varia:icns in in:ut para:eters f:r the 1:ss of Icad :r::at'1Tj stdies me-e:

i 1.

Slight varia:icas in te ;1anned raintaranca schecule s

2.

Re: ire =e.c da a of Serr:w Units 1 ard 2.

~

l i

I Mai : ara ce s:nec.!as are revisec #re:.ent:y 'n cs: ::aer 5/s E 5.

l I

Cre reas:n is te i :a:: of.nf:rtseen 3:r:ec Ou:1ges ta: :::ur ans,.n'le i

tre uni:is shut :enn :aring :ne f:r:ed cutage, cartain c:utire ais:aaan:e f=cti:ns will be ; erd:- ed ca: wili effectively re:u:e er de.1 the s: edule cutage 1: : e later data Th's pr; dent practice is wi:alj.se:

because af re obvicus ec:nc=ic heneft:s. Anc-er -tas:n 3:r resisec mai".tana ce sc ecu:es is the revised delivery ca:as :f rec'acarr: :ar s neeced caring the scheduled eterhaul. ~he =aintenance schedules Jsed in e *!RC ': earings tary siightly fr:m these usea in :ne rne filir; f: P t'a years lia!, lie 2, ard 1933. 'hese -iner variati:ns. vet.ic act a##ac:

t e regired rtserie margins.

Mc rew unt:s 1 and 2 we-e assu=ed to be in serei:e : r: ugh 1555 ', re Mi Tand :recaecing LOL? eval.ati:ns wni'e, i. Se rate 'iidag, rese

.c units we-e -t:f red in :522. Since ce :::31 :a:a:i;i:y o# re in ani:s is :nly 56 M,4, tne rescitan: af'ect is egligib'e. "cwever, t e eti-e en:

t

-y-g,,yg---

ww-

--y--,q-m.e,w-rirem---.--w-wee +-rm prM-re-w--

pm-_h em m

,me----

ymwwyyev----1--w-ew--w-w---

• 'w-r---w-m-w*- - - - - - - - - - - * -

- ^ -

' l I

I sf ce Merr:w L'nf ts wcaid favor :: ti ued c:rstru::ica c' te iCanc units anc, therefore,,as 6 c:nsenative a;:!1ca:i:n in cen. mining te need 'cr ;cwer in the tidiand prec. Wing.

C9 Staterents made by "r. E. H. Xaise ~' bef:re the *'ich';an ?. lic Ser/ ice Ccmissien en January II,1977, in regard t: the a:plicatict cf rude:a j

t

unge ratas as they !"ec: recuired -eserie aqi an c:rsistant wi -

i i

re eucc:1:gy e :Icyad :y '8r. Sc-::n L. He'qsb :e":re : a L':ersieg l

Scar a: ce.'"cianc -tarings anc a:so c:ns'stan.i-ne 'ef:r a:i:n

nuined in the Envir nr entai Re::r: Su;:le en:.1 l

l l

l a - 0:57 lF RE? LAC.'E': PC'AER (DEL:Y COSTS)

)

Alm:agn re este #il' g o: ::ncen i:self vi:3 - e ::s s :f :sia/,

i: ::is ar:vice ru:n i #:r.an:n : a: is :er.inen: :: :ne L :ensee's analysis c' this suh'ect as presenud at -he.'RC :mceeding. Clearly, there are cartain dis.- epancies herieen ne two cases. Mcwever, as this review will atter:t to der:ns-su, all of Oe dif'ere :es are fully explainable. R.-:her:cre, e.en if :ne rate fii'9g can rad been used instead of t*e data actually used at the.':RC hearing, the effect

n celay ::sts wcuid have been 9e?'f <i: ale.

n fact, ce Lf ansee as 1

acjusted f:r most of te ine:nsistancias and me a-c risui: 's :nij abcut a 2*, recuc:fon in :elay c:s:s.

5/ Fage 5, Direc: 'es: mory of I.:. Xaiser 7/.:aragra:h II, ::. E anc 9, Tes:- :eny of 1:rten.. Seins.

T/ Table 1.1-10, Figure 1.1-2, caragrs:h 1.1.3.

_-..-..-,_.-___,-,.,,,,_--,,__.__~~.m.__.y.-.,_m.,-__._

l 73

,.:.A,..,.e

-- ;; e.. :

e.

ur

s. - r u..e -..q...

5.:

4.,,...,. -.s., o..a 2

. ce.p:---- -.~.e...,.

~; :.

n.

r i

i i

3ots ce rate fi!!n; a.-c Os ";RC 1r.ceeding ace:a edge i:entica: sales t

I and buy-backs of :crtions of 4f::an: Unis 1 anc 2 and C2 :be: 13=

municipalities aM co-ops.

lis c:nsistent treament was al-eady dis::ssed in Sectica 1 =f mis re:ce. :Jenever,.:nen C:nsa: e-s Pr.,er caica atec ce ecsu of celaying 'tidiard 1 and 2, i: die so wi:n res:ec: :: me *;11 ca:ati!ity of tsese ari:3. i-tecencent :# resa sates. Se Su agrees,

ma: ir :r:er = assess re i :ac: :# =atayi g te :: era:t:n :f 'di::a :.

unl cu:;ut :f a pian: t.r: te ::nsidered, beca.se t. e de ay

1. Mi:'and will af'ect the.:al :ut:ut :' resa.nf ts and ce af'ecu will Ex ar.:

l heyend.te CP sysum, 9ere#:re, n-at a:cears :: te a cis:recancy is, in

~~

tne Su'f's ::f nt:n, a basic :ni :s::n':si :i'#erer:e in de :u-::sa :'

Se in':rmati:n :resen.ac.

B.

%'.DCM "'JTAGE RATES Hoc ce ra:e ffiing, anc tre r:cu::i:n ::s: r;ns used in :"e 'iRC

':receeding rely en pr:jectec candem cu age ra:es.

Of the 27 #essd units en :ne CP s/ stem, tne :unge -ates fr:m teth sets :f da:a are cer'ect y c:nsistant with res:ect to la units. Mcwver, for-the i

remaining 7 units, s!';ht dis:re:an:ies are :ted. A ty:fcal dif-ferenca can be c:se-ved :y enviewie: ce :utage -a as re::rtad 3:-

Xar,2. T esa va ues are re:r eacec tet:w:

l i

• .-+

.w

-w-,-

,.w,.

-.--.-,-em_-.,e,-,

-,,,_.w-,,,,__,,,.y,,,,,,,,,___,__._*,w

_,,.y

,.,..-,-.p,

,_w%

,,.www-e m--ee

e 0

14.

MP.C P eceedinc Rate Case P-: cut:d:n C:s: hn 1981 1982 1953 195 1921

!!!2

!!!3 192 Karn Z.07u.07u.074.07 2

.0575

.3724

.07 2

.07 4 i

5 l

1 Pe values re erted i: -le rate case are c:nstant ever the 1981-es :eri:d w ereas in :he ::rocuctice ::s: r;ns the 198; value is icwer by.0063.

'O.ere dif#e-ences are ec:3d, tre di"arence re'lects te 's:t Oat #:r

- e r::sc-i:n ::s: ;ns re -in:ce ; age entes !s :evet::ec :y " 's

erni:ns civisien neae ; sed wereas *:r :ne -1:e i'ng ! cestan value das used.

I any even:, the af'act af dif#erences of su:h s ait : aget:ude :n celay ::sts is ::;ely 7fnf.al.

n fact, even if ne differences we-e j

2re signif*::-: One s' fact on :eiey ::s:s.cu!c s:til be :# mi :r i corunce. Tnis is so tecause One delay c:s:s are calcuined as ?e cifference tet:veen :r:du.ica c:s:31 curred with Midland :n line as sc.eduled vs. M'diand ceiayed. Sir:e the same rancen cu age - :es wule :e used in each :ase, the ef#ect of using a dieren: se: :f I

outage rates in caicaiati9g delay cos.s would essentially :ancel cut.

,.. - -, _ _ _ - ~. - -,.

n l

8

-!5-l SCg; LtLs.%* ? i ;..*r * *er.;

n

~

e 30:n :ne rate ff!'ng, a-d tne :recc:ic c:s: euns used in : e 'GC

receeding ;r

vice esti atas c3 s:heduled ain:aninte.

If the 2' fossil unf ts :n :ne CP system, the schecuted caintenance fr:m bo:t sets af data are :er'ec-ty c rsistan: n'th res;:ec: s 22 units.

l i

l F:r : e renaining A uni s slip: discre:ancfes are cated.

Or th ee r

I

1. . ese casas :Pe t::a nu=be-cf neeks o# s:Peduled ain acance are

e !!. e evea. e I?!!-Ei :ea':s c--

- e :'s:re:a. :y :n'y :::u--i ;

)

'- : e assipren: of sc ecutec af-:ena :e :: a s:aciff: year.

n

ne :ase of Waac:ck 3. I a:di-'ent: nests cf seneduied a'n:e-arce was 31annec under t e :recac:'en ::s: ;ns.. :r : grifi:ati:n, i

e :iffereacas 3. e re --ducec te*:,:

i i,

• I l

NRC F :::ecirc i

l Rate itse seed;eteen :s: gn 1961 1922 1983 1501

,1921 1922 1982 1964 1

Caco :

a a

4 3

1 3

1 2

a 4

i

sea d 3 4'

4 4

j 4

3 4

2 4

i khit 1 2

2 2

5 I

i 2

2 2

l

'ahi t 3 2

-2 2

6 2

2 6

2 I

I i,

N e

4

,-m-,----,-,,--s e,-,--e-_-,-._w-

,_ey,,., _, _,_

--,m, o,_,

-,,,,,,.,.,.o

_,.,.,_,,,,,,,,,,_,,,._,,q-,.

_o.,

,_g.

,_,p_,,,,,,,,,_,e

. ~ _ _ _.

s

. 71e ex:iarati:n fer :nese di'#erences esta :n :ne avaliabiif ty :f i

u:da:ed ir.f:r ati:r.

(See f::tnote 3). D e new s:nedules nere avai'acie when the rne :ssa nas being :resared :2: were eet available at.ne ticie the Midland case was pre:ared.

Te Staff rece;ni:ss tant scheduled r.afatenance is an item c:nstantly sub*ect :: revisi:n and u:-date.

In any eeer.t, the :ffferen:es are sery miner anc because One sare

,l scheduled ra'9:enar:e (culd te used in de 'diciand :n line 3rd widiard i

elay cases, - e e##e:: c' ust ; :e an I:recuit: afr:a9acce sahes in :a':uia-ig :e'ay ::s:s.cu!: :e egh:it'e.

-1 i

D.

! E.C PM:t i

l Hoth the -ate 'iifr;, and ne :r:due:1:n cos; r.ns ; sed in tre MC i

l Or:cetcing pr;iide est' a:es Of arcjected hea: rates.

In the rate

ase, a :: el using ac::a! 1973 hea ra:as was use<1 :: deve':: :ne pre!'ected "ea: rates waereas in :he '3P.C :recteding a differen: ::cel r

j whica utiti:ed actual 9 eat rates o<er :ne !971-72 pericd was used.

l Be resuits cf the ne ac:r: acnes prcdu:e a ur:er :f in::nsisten:fes.

}

n aII, Feat rates :eween the :tio cdeis are f: anti:si f:r :n?y 2 l'

units, the heat rates are higrar in the rate :sse f:r 4 if ts, and l

I Icwer f:r ali scher units. Ahhaugh tN dif'ereacts ar-any, t..e si:e o' : e :i'fertaces a*e s. aii.

n all bu dc :sses, ta'ues sary I

by tess : an M, wi.n cs: c' tese he' ; in ce 1 :: M carge.

79e largest di"eatnces taad :: :::ur a eng -hese urd:s ':r wnica :Me i

rate cast. *es:.ited in Signer <aiues for ce heat ra:es.

I 1

i l

i 1

\\

s

\\ I e

I An t :crunt -tas:n for -he ci#fe ences is -ha sach ccei assures l

I I

differen: ccen:ing levels #:r the units at: t e hes: ra:e will varf i

as a #urcticn of ; nit use.

• n ad:ition, :*e. deis d e7 elves have cernin limitaticas wita res:ec: : clottfr; t e hea: rate curies.

The fac: that heat rates accear :: ':e hicher in the SC areceeding cr:c.:es 5:gher cr:due:':n ::sts than w uic have :c:.rrec if ne

an #r: tre *1:e #ili ; b : seer ssad.

-: steer, c e a:119 :ecat.s!

ne :an are. sed in ::02 ::a Mid'ar: as s: ec ied tre idiand :ela/

cases,1 d ::i#ferences 1-e :*e f: us c/ the c:s: :f :eiay analysis, I

tr.e e: ef#ect is mini =i:ed.

I l

.u.. h. G., e r.R 2.'ii.:., m s.w 3.2,.,.. :(

e C1e este filieg and t: e RC :r:cseding c:nnin #: recasts of :*e ? 5 out:ra: ef Palisades and 31g R:ck in the 13c'-8a time seriod. Tne esti:ates in ce :reduct en c:s e.:ns eversuta trese out;:uts relatfve t re rate :sse. For "alisades, the dif#e en:e is Hnce, on 2e :-der i

of less dan C.5';.

For 3f g R:ck 03e differer.ce is a:nr:xfrate'y 35.

To the extent these out;;uts are everstated 'n the.MRC pr:ceeding, the ::sts of celay are edersute:.

i a

j l

l I

._____.---._,-----~..--.-,,_.----,.._,..-.-._,,.__._,n,,,

l l

0

. I

• fith res:ect :s ?alisa:es the di'ference is due so!ely to the =an er I

in wnich Palisades cu=ut is entered.

In the ra:e :ase, Palisaces

1. ih cut;ut is a given, provided by the' nuclear :redu::icn cecole at CP.

In the production cost runs this value :ust te calculated as a :a-t cf de ::= uter run. The er:grarne cannet exactly d.slicate

ne desirec nder because t*e c:n: uter mies him.

I

n de :sse :# Eig R :t, d e sare :re: en us: te :ve*:: e.

2.iever, 0

23: adfaster.: d:es re: 'ul!y ex::ain :.*e uch !ar;e-dis:recan:y ani h exis 3 here. Re' erring ba:k to Section 1 af ris recert i: is noted trat the rate fiting has taken ac:=.nt of a 12 W derating :.

Ifc Rock t'at is nct reflected in de ::flC se:ceeding. This is: ecancy exists because the de:'si:n :s :erate Oc=.rred a'ter -he *:RC :sse was 3 spared. This c:uplec with the minor ina::; racy p ::. cec by the ::=c.:ar

'ully explains the ap;arent cisc-e;ancy.

F.

.11. CLEAT REL 035 3 - P.iLISADES, 3:3 RCCX, 5:0 :4ICLA.'c j

i - Palisaces - The nuclear fuel ::sts for Dalisades are a:pr:x. a:eiy i

4: higher in 1981 and 7 Icwr in 1983 and 1981 than those reported i

in t."e ra e filing. T1e dis:repan:fes are due is ci"ereat Wh 1

1 Outputs assumed in t.'.e two cases and : e 'ac: trat : ese ea'as a e 1

c:ntinually uccated and the -ate fi'in wht:h.vas :r::: e': 1: a i

later cate reflected tre recent ct:3. 4cnever, adj.stie: #:r dese differencet will not a##ect re estimate C c350 c# delay.

O r

_ _ _ _ _ _ _ _ _ _ _ _ _ _ _. _ - - - - - - - - - - - - - - - - - - - - - ~ - - - - - - - - - - - - - - - - - - - - - ' - ' - - - ' ' '

i T

t n

l l

I l

?a!isades will cce-1:e at its =axt:mn leve; cessihie inde::endent 1

Of nhecer ?tidiand is delayed r et. C:nsecuently, Fa!isaces 5

cannot c:ntribute ts the inctsental c:st c# delay.

i if - Big Rcck

~he nuclear fuel ccsts for sig Mcck are significan:!y lewr in re tiRC pr:ceecing : tan cose recer:ed in tne rate filing.

Fcr examle, in 1984 the estinated c:st is less than one-third l

eat re:ce:ed in the este fi'i g.

De exciana:fcn is that te n

l

s: cf 3f: Rock :eners:i:n 9as no: teen us da:ed in :ne :r:c'.::ic9 i

1 1

)

c:!t runs. S.is is justifiah'e because th's data is uneecessar/

l in:ut is the cost c# deiay. ~he :ut:ut of Big het is fixed #:r the as scheduled ard celay :sses and -hus,.vnen the dif'erence is taren, ne c:sts wii! wash cut.

i 4

1 fii - Mic!anc - ?.e Midland fuel ces:s fer !!81-Ea, excressee in rilis/ch I

are si:nificantly higner in the preduction c:st rm than -ncse ascerted in the rata filing.

his is so, because :ne :r:ducti:n

cs: r;ns reflect : e ucdated ucitar 'uel esticatas of et:rvary 4,1977 that was sub:itted at the.1RC earing wnereas ce rate filing is predicated on t.*w earlier es:1 mates of Nevemcer 1976.

1

• f the values recorted in the este #il'no,ere use in : e :recuc:icn cost ran, the c:st :f deiay wet.id incriase.

"%s, etiathe :s the rate filing, these values are censariat'se in.9ef e esti a:icn of celay costs.

. m

- m m

._,.-,,-.-~m

__y

-,my

,_r-_,--,.

i s

l t

l G.

PRCJECTED.:CSSIL EEL COSTS The ces of celayic '4fdland is a direct funetien :f the esti.matad f

fossil fuel :ssts en the Ccr.sucers Pcwer system in the 1931-aa ti e l

period. That is, the higher the fossil fuel cos: estica:es, the greater will be the delay costs. Mcwever, because the same values are ac: lied to both the as seneduled and deiay cases, the effect of 1

using a different set cf vaiaes will be.-dnimized.

Es-i-'a:ed f.el costs are recerted in :ne '.i: ansae's crc::c:i:n ::s

)

i rans usad in the '!RC crc:eedinc and in the licensee's rate filing hefore tne 5SC. Ciscrecancies between the two sets of data can te obser,ed. Hcwever, in all but five instancas the diffennces are extre ely mi or, en the Order of l' or less.

These dif'erences are due t: reune of' a r:rs and a s'i;;; sariati:n ir cw i,'la icn ard real price increases were handled:

e.g., rate case - assuminc $1.CC per 93 U'or':n, a '2". crice increase reoresenting 65 in'lati:n nas calculated as --

$1.00 (1.06) (1.06) = 5'.12:6 whereas in the creducticn :sst ran, with the i

very same assumptions it was cal:ulated as --

$1.00 (1.'2) = 51.12 l

In any event, because of t'ese factors, the :redt.:-icn c:st runs produce sligntly laver esti atas than :nese accearinq *a the rate filing and Inus, are conseriative.

ee

^

[

~

i 8

r 21 -

.dcre significant 7.;ei ::s: differences are noted for urn 1 and ?,

l Ca= eil 3, *4eade:>.1-6, Karn 3 a.9d 4, and Say!crd Oil & Gas.

1 l

With res;:ect to Gr's i and 2, the creducticn cost ruls have about a 25" higher ccal cost ':r the 198184 :eriod which tands := cverstate dehv c:sts. The icwer saiue used in :ne rate case reflec s a mana:em j

decisien. =ade afur ce 'GC testixny was prepared. (See f:ctnota 3).

::n:rsc: f:r /:ese units' ::s! saeciy i:w at t Ider ::s: cat. e r than. vat u:::i1 a ta ar ca:a. T e :r: cacti:n c:s:3 ~;ns :n <cicn -fe Heins ceiay ::sts are based are ir err:r as they do Sc: use : e ::ai cost data f:r the <ari 1 12 Units : resented in the rate 'ilina.

i

'410 res:ec: :: Ca=;:teil 3, tte ;:r:ducti:n ccst runs have accu: 115 Migrar ::.1 esti:z:e #:r de year 1984 nnte.n ais: Overs:stes :eiay Tne icwer saiae, u' sed in te rate case, represents the costs.

estir.ated c:st cf : cal to Cam: bell 3 based en a mre recent c.anagerren:

decisi:n (See fac note 3) :: tegin ::ntracting for 1: new.

n the pr: duction ::s r.ns, the esti: ate nas tased en an earlier maragement decision to contract for deliveries at a later date. In additten, included witin this estimate is de higher c:st of : cal to Ca-etelt 4 which was s:hecaled : c:re en :ine in 1921 T11s plant,' ad been incefinitely :elard :rior :o 2e fiting of ::nsume s :esti :ny ', :.,e

'iicland Or:ceedi g Tne pr:ducti:n cs: r;ns :n whi:h de Heins delay ces:s are based a e tnerefore in treer as they do nc: ase the ::a1 ::s:

data fer the act: ell 3 unit presented in the r ste ling.

--.r.

4

.-e. m..

.....-...4

~

s 22-

'iin aes:ec: m Weacek 1-6, ard Karn 31.t. te ra:e filing has abcut a 2C" hi;ner 'uel ces: es:inate f:r =e year 135C inich : ends :: an:er.

state tr.e :ests of delay.

n te pr:duc-ice ::s: runs, t"e ?'crr:w ".ei costs were inc:rrectly inputed 'or rese units weereas in the rate i

'iling te carect values were used.

Wi-h res:ect :s Gay!:rd Gas and Gil, ce ra a "f'ine assu es ra: ':r t

ce jeaes :33; to 1152 nese ;n':s w'il :ce-a a I' ent.'s :n :as anc 1 cre en oil, weetas in =e ;r:c.::1:n : s ens :as is asI O.c f:r ce en: ire ceried. Since cil resal s in 7igner 'uel ::s:s, ne t

r

cucti:n c:st r;n is c nservative relative to me rate 'iiing wie respect c deiay cos.s.

i e.n..,e.... s.s

e. 5.,.

e..i H.

.e.

The pr tctica c:st aans dich su;per: =e Heins testi.cny c:ntain :nc e-r:rs in coal costs dich ;r: duce a ncn-consertathe effect On :elaj c:sts.

hese are t't c:al c sts for ce ar, i i 2 anc ce Ca ::el: 3 uni ts. 3e L :ensee indicates da it enmi ed Se effec:s cf mese coal cost increases and certain other ra:e case ass.ptiens and fcurd l

de effects ts be negif gible.

A credu::icn ::s: e.n was :ade :n.:ebr;aay ?5, !?77.

• inc:r:cra:ec ce rate case assr.tre: ions :n B'g Rcck cu :u:, Ca.retel' 3 and (ar, ' L I fuel costs, t e retirrent cf :4rr:w, ard Palisades 92ei :ss:s. Cn a 1981 present =crth tasis, dese adjus=tets esultat in accu: a 2",

1 1

_-c-

,,.-N-

e. ' -.

,--nn-- - - - ~ - - - - - ~ - - - - - - - - - ~ = = - ~ - - --

l

=

i i

s 22 reductice in teiaf c;s:s :ver ecsa -e::cr ac :: ea A rd: Sa'e y a-:

-l

'itar. sing Ecar.- 17 evisac Iri:i: : (Tasti :ny Of 3.'. "e' s !. !! sac

n tais analysis, the !.icesse cen:'aded na: te a#fa::s ere ::

i significant and ':r e.is reas:n 1: did c:: :::a:e the s ins :ssti::ny e

it: t:is area. Iw Sta'f 5as review. -he 'e:rJa y 13, 1977 r:c;::'en

st run and.?as ::nchced Sa: the 'c::ac: Of : e vari:us a-f;s=e-u, inciucing recucac ::a: ::s 3 #:r "r:::ei 2 ard < art I a 2 is n' a'.

l I

I

'~-i: : ::u ar r2n :ic ac ::r-ec: - e f:":vri g :if#amtes:

(1) 7 earea ef Midian 02::2:ity I

(2) 7.acd::n: :utagt rates t

i (3) Sc. edu'ed aintenance

'1) Rea: r3 as (5'; Sig 3::c f.ei c:s s i

j (S) F:ssil ' uni c:s:s a.

hareling of escalati:n anc - und :" er-:-s h.

Wend:ck 1-4, an: <arn 3 1 2 The Staff concl des that adjus= eats are ao: recuired in :cese ins ances because: (a) wi n eeseec: to item 't) it acuid :e ine:nsistan:

i n tt the desired ;ur::se :f re :-:cuef:n c:s: ;n, Ib) v :'i *es 9:: :

fte-s (2), (3). ::', anc 5), :ne efeec:.cu c :e neg ':i: e a-c

'c) af th es:ect to fa and Sh, *:. u!c.91y :a-c :: :rir, re es:1=ated ceiay :ss s tack :: wards thei-ini l' values.

t l

l l

__--_..____-..i.___-_.---.._.__-..._..,_.-_._____...

.,...:.,....e...,, c.,. r.e.,.. e. ~.,..,., m..

....x......,a.~

De.aterial in :ne ra:e ff!!9g :e -icent :: tr's 'Isue a:: ears in te cirect tas:i eny of "r. J. 5. :ery.s:c,.

• r. Fergus:n esti.?ates the : s: 'er entm= en: at te end of if #e,

}

ano ne acNai c:s: Of surveiliance, teginning a: -at the, 'cr ali uclear :cwee ciants alrea:y in :ce-st'en :n the C? syste"'. Bus.

-is esti a:e 's 1::Ii:2:Ie :: re t!'saces an-3'; het hi.1: %:Itar 3' ants. T e va! e 9e a" 'ies 5: 's 20', C # :ne n:2? ac'u! ::50 c' rese :lan:3. 7.is tnnsta as : as esti.a:ed ::s: Of !57 mi!!':n #:r i

1 toth anits. -cwever, siace these ::sts are oc: incurnd until de i

. ear 20CC 3:r Big hek Pei-: an I#37 ':r Palisades, because ea; is, waen : eir ::eratiag l':enses eni e, inis es-ir ste re#Tects De

s: 'n ::!!a.5 accrox' stri/ 2'.eears :f* int: :ne future.

\\

In ::e.'iicland ;r:caeding, the licensee has est' mated :ne c:st :f decen::issi:nt,g the Midiard tc: ear Nver Plan:, Units 15 2 a: 383 i

silli:n.

• heet is 5cwever, :ne.ccrunt diffeatnce tedeen :nts I

estimate and that developed by Fer;uson. De Midland asy= ate is the 1981 c:s: of dec:r=rissieninc is 1981 ::11ars.

lf :ne wished ::

~

-care it with Fery s:n's vahe, :ee cu'd have' t: :3;cutate : e ::s:

at 23e end cf.'11dland's useful

ft.

/ g me saxe es:3'a 'On d

i rates used by Feegusen (6-1/25 :er anrum :ut ter:up 1951 ard li' l

er annum the-en'ter) resalis in a 'aturt : s Of ::ut I:60 91? tien 1

l in the year 2015.

~-

s..

O I

4 i

1 1

Tnis va'ae is si; nidi:antly larger :har. the Fergus:n esti ata and suggests that in :.e ** Tand :receedine the :ec:= dssi:ni c es ? a:a t

is 51gn relative :: dea wcuid have ':een the case 9ad the Fe-cusen j

analysis been used. C:nsequently, in the.'$C prcceed'ag :ne dec:c:nissi:ning ::s: used dcas not 31as the acaiysis in fave-of i

Micland.

-caever, - e-e are ::.e-i c:rtant di'#ereccas beseen :ne Lc es ' a as

na: tear enticci 1 ce e.u oie, :ne 'di:'anc :ac..:ssi:r'nc ::s:

assa:nes ::: clete d's=r:li9c nich is a higner level Of :ec:missi:ninc

nan tna; ass a d rf Ferguson. Als,.nen ne Mialan: esti sts is

'uture.ce:ned 'er :: :ars t ve :ur:cses, i; is f =re talJec be.veen i

3 anc 15 jet-s cre : an Big Rcck 2:1c: and :alisa:es. C rrecting #:r a

l ta:n c' : esa fact:rs : ends :: briq. e.'iidiand esti a:a c':ser 17 if ne with the Ferg'.sce value.

I

\\

l l

Sts" Res:cese :: the A"eesti:ns Of Or. Ric?ard J.

!m i

l At the hearings c:ncuc:ad in Ch_icago tre week of.w y 9,1977, tasti::ny a

.as presented by Or. Rf:hard J. Ifx which identiefed the fe'l: wing ai'eged inc:nsistencies bedec :*e -ste filing ma: arf ais and :ne C:eswrer's tasti :ny

rtsented in the M': lard ;recteding:

i i

j

. =. -

~

s

. i j

1.

31fferences in Cat:::all 2 Coat Frices (Mi:'st:d :stereen:rs' l

Exhisits EC and 51'.

1 1

2.

Of ffering Trea::::ent of Capacity Sales of Mf elanc L' nits 1 and 1

2 and Cam;telt 3 (Midland Interieners' Exhibits 52 and 53).

I 3.

3f fferencas in Plant Ca:act:y Factors 041ciaN l1:arteners' Ixnisits 52 ans !!.

n ad:iti:n, Jr. Ti m aliegec at the hearing taa: ~:rs.r:e-s ::wer Cc=:any

{

{

.as fer:ing bulk ;:urchases c' pcwer in tne M!diand deiay :sses and there:y

istortin; delay c:s s.

This cententien is also exa:ined in this pcr:1:n l

]

f the re:cr*..

DI..-.<!.'ICIS IN CAMP!EL!. 3 COAL PRICE 3 l

l At the nearing, Dr. T!:m ex:rtssed cencen : a: the Cameteil 3 c:a1 ::s:s l

wre teing inflated for delay cart :ur;cses. (Tr.!!!5). Cn : ages 2C-21, Sect'en s, !:em G), the Staff identified the ciscrepancy in tne 1984 1

{

- fuel pric,es for coal delivered to the Ca=; bell 3 unit and presen.ed t.e

.i tases for the highar prf:e as rescried 11 the : reduction :es runs.

l Furtheners, :n pages 22-23, (Secti:n 4, ::sm W.', :: e Sta!' maerted :ne l

effect of ad,'asting for this :lifference, as we I as :t*er ciscrepancies, and ncied that delay c:s:s wculd te redu:ed by to:ro.t 4:aly 2*,.

i i

m---.,,e.._..,w-e.-

_--._-.%--_.w,. -,. _ _,. _.

0

~~

27-e

,s As 'repcrta[ka Mdla.nd In:arvences' Exnibiti!C and 51 anc during c. css-e.<anina fcn, Or. Ti m ais; ex;ressed c:ncern over'i*e 198 2rE;n!953 c:al ;. ices f:r Cic,.teli 3.

The Staff cent' ends -ha: Or. Tim is in er ce x:

s..

a w

o in this regirci,4'irn, when Dr. Tim caiculated the carnn: dollar Camp: ell c

e l

3 cal :csts ~ fr:m the Van 9eenen Exhibit, he assaned t.".e real deltar

~

estima:as refisted 1977 base va:ues rather man 1975 tase values. Iqus, Pe igncred an additi:nal year's esulaticn that shculd have been added v

=e '.'an ?.ee en ta! es. C:r sc-ing 'or this -esu!:s in e ea:s 'ii'ng l

values : sing stign:1y :igner nar. tese re:cr.ac for =e "i::ar.c :r:ctecir; anica if anyming wcule resui: in kwer dilay, c:s:s in i:he Midlanc :ase

nan wculd have cccurred had the c$frect Van Reenen va ues teen usec.

'Furcher cre, rather tan use the Van Reenen tas ircny hic: recti-se

~

er: sin cal:uiati:ns en Cr. If m's ; art,1e ::uld have usac 'tr. 3ra;er's u

sExhibt: M-9 from thi case filing Shien alreacy recerced =ese vai.es in

, current dollars. Had Dr. If:n. ;see taese data ne may have talized that

-is Ve Reenen :alculatieng:41 in er-cr and t.':at, relative. to the ra:e filing val.ues, the ;41diand case trsit: en: of Ca :iell 3 c:41 pri:es between N

~'1961-83 is conservative as to their impact on delay costs.

2 1 O!FFER:E REAT4EP.T OF CAF C*T' SALES OF MI:t.AND UNITS

• AND 2 AND Cl#79 ELL 3

• icianc Intersenors' Exhibits' 52 and 53 hre in':ia'ly prepared f:r the ate l

filing by E. H. Kat'ser M ':ensumers Fo.er. Or.

it asser*.s :ha: ce trea:-

ent of delaying Campbell 3 cn :$ese Exnibits s :perts his :ententi:n tha:,

c.,,

.a.

...<.,,..n,.,,,,_,,,._....n,,.--

.,,..-n,n,..

,...,_,,..._,,n...

~

s in delaying a facility a ;c.-tien cf whic has been said t3 a bird : arty, r

l it is a:;r:pria e to educe the piant's :acastitty by that pcrtion :eing l

sold to te third par y.

C:nsequently, Or. Tf= questices the cor ectness

'of CP's pcsition that if Midland is delayed, the effect should be f.dged in ter :s of the :otai capacity of these. nits independent of sales 's third parties.

(Tr. 5996).

l

• is ze 5:aff's ;cs tion Oat : e :ur::se cf CP's analysis as: :e i

'ul!y uncerstecc and exar:ined. C? is a-a.c: ting to cal =!a:a re ::sts

f delayir.g the Micla-d Units and in fac: these costs wculd be sorerd ever IC0t of Midland's capaci:y and not just that partien cwned by me Licensee.

As explained en : age 13 of mis recor: :Sectica 1, Ite.m A), te S aff's view is'that the aper:ad taken by Consumers is correct and tnat wnat appears : be a disencancy is a basic cnilosechical difference in me i

urpcse of the infor ation tresented.

Under corss-examinati:n Dr. Tim was asked to c:ct:ent on the cerits of CP's position as sta:ad en : age 4 cf its April 13,19771etter to tN t,1 censing Boarc and set cut belcw.

+--?.

N,

- - ~ -

• 6

+~ew-

'*--w-*-'---~e=-*-** * ' * * = ' * - ' * - - ' - - * ' - *

• P.

s l <

The rate filing is c:ncarned cnly with the cost of service are rates of enarges to Censu=ers ?cwer cust: ers are nere-fore locks c :y at Censumers Pcwer's systec; as sucn, it only censiders the portico cf jointly owned units wnich C:nsumers pcwer is projected to own. On the otr.er hand, this preceecing must consider the total cost or effect of a pountial delay of the Midiand units, and, as such, mst c:nsider :Mair total energy output, not just that pertion which Consumers Power is ex;ected to cwn.

It should be noted that the buy-back previsiens fer jointiy :wned units are treated te same in both cases. Consecaently, since the studies were made witn dif'erent cbjectives in mind, their msults cannot be directly ccmpared; Cr. ~i r.: die agree (Tr. 5005-5C10) wi n -he funca ental :'stic::icn being made in :nis ;ucu anc tnus :ne Staff beitaves =at :he '_icensee, : e.'!RC Suff, and the Mittand *ntervenors' all agree =a: a ci"erence is narrantad, al* hough Dr. Tim helieves that the underlying analysis in the Midland proceeding us net adeOJata.

In s,.=ary, the issue accears cc: to be the exis:ance s' a cis:reca :y but rather 'he extent cf the analysis required in the Midlanc ;roceecing in calculating delay costs.

In the Staff's view, the c:rrect aapreach is the one taken by the Licensee.

3.

DIFFERENCES IM PLUT CAPACITY FACTCRS l

Cr. Tim testified (Tr. 6019-4020) that substantial dif'erences were t

evidence in the :spaci:y facters of given genera: ng un' s f:r s gisen year when c:mpar ng dan develoced 'or :ne Consv.ers ?>er C. :any rate d

-, ~,

J- ----

mm f

s i

30-filing data deveic:ed f:r the '4f diand.earf 9;s. Dr. Tica cid not atta ;t Oc suggest which, if any, of the :apacity 'a::3 s were mos: re;resen:1:ive, but expressed c:ncern that the existen:e of suc di#ferences esta:ifshec that inputs ts the different c:mcu:ar m:dels used for the ra:e filing and Midland proceedings also had to differ c:nsiderably. TYs c:m; arisen was ; resented by Dr. Tf:n at ne hearing in lic:anc Interven:rs' Exnibits 54 and 55.

i Tne 5:sff :isagrees 41:h Cr. If m's c: c:usi:n na: :ne dif'erences in

apa:i:y fac::rs :an cnly be ex;1ainec in tar :s of cif'eren in:uts ta l

the.mo c:ncuter ::dels t.nder c:nsideration. As t e first ;crtien of nis e;cr. :akes clear at pages 22-53, *Section 4, Itam H), the in:ut dif#erences :s the two c. cuter :cdels under :ensidera:f on are negligible and have an ef'ect :f a;:roxima:aly 2': :n c:sts.

The pri=e reason for the :spacity fact:r differeaces is a di"trence in c:mcutar ocdeling. Tne rate case cdel cis;4::nes Cons,=ers' cwn geners:ing nf ts against saly the Censamers' icad. Pur:7ase and :ntert. arge erergy are treat.ed en a historic basis. Tnis ty;e cf a:preacn has :een censistently a:ed in Consumer's rate a:plications to tne ch'gan.cuslic Service C:rsnission. Such an a;cr:ach wculd nc: te c:rrec: for :Me :e'ay ::s:s analysis presentec by Cens:.mors in this :r:ceedirg. Tc ac: -a:aly :eveico those ::sts, a ec cuter medel is recuired wni:n :is:atoes t e ::mcined

?ichigan Electric Cecrcinated Systen (MEC3) ;eners:fon n;ainsi :ne FECS 1:ad.

" ~ - ~

.-,,._,-,...w.

,.,..,_,e

\\

- This is ana: Casurers has actua:iy der.e i.. ;erfor rit; t s ce:ay c:s:

calcula:i:ns win its ;r:du::icn ::s: ;r:g-a=. 7,e :3:acity "ac*.srs ':r l

l

ne Consume-s facilities sneuic :ecrease as icw ::s: ;ere-sticn available ft:m ::her ME.S ecters wculd dispiace the bigrer cas: genera:i:n of these units. This is the tahavior seen :n "idland In:arsenc-s' Ixniti:

No. 55 nith tw excepti:ns.

First, Car::e:1 nits 1 an: 2 ave increasa: ca;1:ity "a:::rt.

' s is ex:iafra:1e as rese are C:nsu=e s' ':nes: ::s: uni s ar: neu!: :e ran na.-cer :s supply :te c:stined.w!3 I:ac.

Sec:nc, 2e Mernw 1-4 ;-its have a sharp increase i :a:acity 'a:::r.

This is due : te fac:.that in -he rata case, ;ienc::4 ::ni : 1 =r: p 5 an: 4en.' nits 3 and 4 are un Sar:er nan =e '!c- :w *.r.i:s sic:s

e Varn anc '4eadeck L' nits are subject to a " ske er :ay' clause in

.*eir 'io. 5 fuel oil catract.

Failing to ran these ani:s wcui: Or:cuce e::r:mi: ;enaltias so eey are run in the rate case ecai :nerety i werir;

+ ':r :w :3:a:':y fact:rs. Tne "taxe or :ay' crevisi:n expi es in ?!8:

<culd nc: influe-ce the 1964 production cost r;ns hich snew a 1: f:

d::ndingly 'igher :a:acity ft:::r foc te.Werrcw '.* nits.9/

- ~ e

e 'ng :' *ae...: ace :r :ay" :rovisi:n was nc. : hanged 11 :n.e.. a:e aie :r: gram,:r..: - as wat jear, as we.. as a... jears :ey:ce.:n, are

': :: sec.eace '9 a este :ase a:cif ca:icn.

Tae cceling 11 ne

. ::.c i:a. ::s

n #

r Ze Sf: ate ceiay ::s: ca :ala:f:ns is :cr*ect.

2

-,-__e--.....

_-...,_,--x-.... -,.

, - - _, - -,.... _. _, ~ -. - -

m

+

3 32 Cre a: er ci"e ence er 'idia.ad I-.antaces' E.etiti: '::. 55 ecaires a.t:*anad:n a-c this is ce ca:a:"y 't::or e:a:ec :: !i; ::ct.

The ca:attit:y n: tag :f If g ?cck was assumec s te 61.'*t in 2e rate case s:::dy as :x;a ed :: the 71 W rating used in t.5e diand hearings.

-. e ass.=ed aaergr :r:c W.

,.n =e rate use s acy

,.n......-:- =as % :,..v

..n Nnts. as ec::ared :: : 02 Nors. ; sed ir. Se *idiand s :cy. Se iu'f has ca:cuin se =a :a:a:':y 't:::r, #:r I'; Rec.<.n=er re do :i

=

-~

ass.==:1:rs are f :.n: re :2:a:':y ft:::rs sa: #:r m in ::!; n s C 1-d Z.

te c:r ect f:r :ne us ::i:ns ace. Sc ce 31; Rect :a:ac"y fac :

differeace is -eadily ax::ainante as e'atec = di"ererces in ;ere ati.__._

cd ra:faq.

T esa di'#easects are aeg git!e in.ams f Oeir ::s: i;_-

=

as.as e's:cratec :n in ce firs: :cr.icn of tis recr.

In surstary, the dif#eren:es in Oa:acity facurs are main!j attrituusle ts the use of tso di'#eesit :- atar cdels. ?,e r:ducti:n c:st ::::u-

a1 was the ::rrect cel.: son'y f:r the widiand ceiay ::s.s.

he esta casa ccel is =e :re nnich has teen ' istrically usec in :nsaa, _.

n rate filings.

he krr:= 1-4 and lig Rock capacity fa:::rs cannot :e relatec :s ecdei differeaces. Racer differtn in:ut, ass;rcti 9s we-e M:e wn'ca are *eadi'y ex3lainable ace 9 ave 9eg!!;ible i :ac :n delay c:sts.

e e

.n-

,. ~.

.. - -,.,.,,,,.... _ -.,. -, _. - ~

~,

r.w :. y...--. -... i...t

-.w

e. a....

l l

Or. ~is atieged a:.e ; ear'ng ca: ::ss;.ars ::wer was ':rtia; ;. : rases l

f :C< pcwer in me r ;r:d:.ct':n ::s: r.ns rereby disurti g !. ::sts j

l cf replace:rt pwr ass: cia ed vith a delay of t e.Mid:anc 1: nits. (Tr.

5sc36CC4). In his us-i eny, :r Ti n eferred :: a cr:da::i:n ::s

. :uur r;n ;.:cerse ca.043 w.- :h di: n:: irc!,.de the ":ur: rase IC*

ny

1:eg: y.3

n

r. ?! f s vie., the tack cf any "Pur:.tase 0* in ris

. :. ar 29 su:::r.s 5's aq en: : a- ::ns_e-s ina::-::riately 'n::ccec

':ar: ase ::

'n e :eity :asas ana*y:ec in =f s :r:cee:in;.

Tne 3u h:s rev ened : e aliega:f:es :' Cr. Ti n and :: c:.cas ra:

d 2ey are unfrandec. The ;a.-tic.!ar :::ca:er ran referrec t: :y :r. T!: :,

Cl-023. nas :sif :ne :f a arge sce::er :' :r:cucti:n cas; :: :: uter uns asec :y C:nsars ?cwr : ::nt.:: sar.sitiei y stu:tes. : n ;se 4:; :

nct cave been a;:c J::rtata a enmining te Midlanc delay :ases. ?!=er, that r;n and :the s cid have teen usec :: deter-ine the a::r:cr'!:e leve' :f "Purcase 1:' *:r.se n ne tiland :elay cases.

10/ 'Pur:hase 10' re'ers to bu'.'c pcwe :urchases wnica C:nsu eas ?>er l

seedules to taleta', t 20: installed resarie argin in me event tha: the tdiand uniu r: :elayed.

l l

l l

l 3

) O M

24 I

a :-:du::i:n ecs: c: cutar :-:gr2: attrats :: mccel -te actaai ::eratten i

of a ?cwer systa urter give ass.:ed c:nditi:rs Of: de-and, ene gy ':r sea:, generatic-avatia:ilirf, purcase ;cwer actions, fr.c eenni ea:

I rates, '.el cos s, f;ei avatiamiliff, c:ntrac ual ecnstrairts, regulatry i

ces raints, an: trans:sissi:n !imiuti=s. R presen:, no :x:uur ecde!

l<

i.

has :een deveic:ed cat can soli:au te act.ai : centi:n of a :ceer systam.rcer tn's se-its Of pien ::nditiens.

jai::te re ifr-uti:ns of ::ai' g, me ;r:c.::i:n ::s: :: :u:er ; :g-1 s avriab*e a the ut iir/ incus: y :: day ::n:r*:uu gnatif :: ne decisi:n-

'l l

.w g :r::ess. 'lar'cus tec--i tes are asad = c=;ensate f:r : e l' iuti:ns.

The iterati:n catcc is one 5 ch tecnni:ue used by t e uti.ity i* dust y

nii:r ce c=:uur :u :.s of s:ect'i: :a i eurs, s :n as '3.r: rase 10*

1 1

j

cer. By :nis tu:d, an assw. :a;act:y 't:::r is assi. rec :: ne f'r9 ca:acity ;urchase :: esubiis :.'e iga::, i' any, en tne :uma: :f gerera: ng units hadng '<ne n :csu that are *:wer than t..e :r:jectec

.-=asac energy ces:. If =e results snew a ecucticn in suc31:w ::s getra: ion, anc=er :apacity 'acur is assigned dn an iters:iv e :r::ess unt'i t.ie ; rope-ca;acirf fac:or f:r tne ;urctased firs es:acity is asublishe:.

'dir ge:c judgerent and ex:e dence, tre ;r:ce value :an he estatitsrec in a *'titec c..te-of itersti=s.

i I

i 1

1

[

J.

.1

-IS-Bis is de ;r:cacare that 0:nssers 2 :er C: :any used = deu-ni9e na 0

pr:cer ca acity #act:r

assign u the 'Fu 7 ass 10" :cwer recuicec in i

ee Niciand ceiay :ssa ;r:cuc:'en : s c:::uur r=s.

rcutar rans e a made using three cifferent capacity fact:rs f:r ce "Pur: nase 13" ;cwer.

A :ero :er:an: ca:acity 'act:r :asa was ~;n t: estabitsh the taximum ;e eratien t*at c:u:d he ex:e::ad f :m 2e lek ::s: ;ece-a:ics uni 5.

A M peaten:

c:acity dac :r was ?.en 2 sed :: esualis:

."e sassitivit. and :rovice a i

i t!.ta '*: vni:. 1 ar::la-1:n ::u!: a.i n '-* :s. e ---* " ' a =-* :i :n s recairec :: esu: ish :: e pr::e va';e. 170 :er:an: ca:a:f rj ac::r es d

f:ucc :: te ne :r:cer assi; cent since ce 1:::act on : e icw ::s: ; nits I

was negl gthie.

1 l

h usa :f a * :er:en: :acacity 's: :r :y 0:nsa. ers 7:we-t: : ave *:: ce c:.antities f 'br: nase 70* recuienc was -tas:na:;e and :14 n: essa : '-

I 1

l l

f:r:ing any unnecassary ;urchasas. Bis :an te verifiac by eartining : e 4

)

scerti ::mputer rans used in me i arat've : :cass to :eveic: te 70 pe". tnt 'igure.

J l

1 1

1 i

i I

i l

l l

l l

l n. 1

.n.

l I

i i l

1 Be '011cweg tab.:iatica :etails de 1922 redue:i:n in ;ererati: 'r c reia:bely I:wer ::s: ani.s wren -5. .Nr:hase IC" ;cw is assi; ed a 7]"

capacity fa:::r as co pared :: a zero :ercen :a:act y 'ac::r: (L's in; icwest cos: units first).

i.'ni:

70:1! Sere n ti: " hrs x ',2 0 Genen -ine '.'nft 8a tfec4".I Zen 5 i;.

Secr?ase Cac;:::el' il 257 1.325 1,225 0

,a.c::e1,i *c c.2.15 aac:cx =2 153 ii2

!!7 i

'4ead:ck v7 159 197 i*,2 4

C:ct #5 167 1,372 1,072 0

Cete d4 153 369 963 1

i

• c.1-*ng il 105

!!O 525 5

'uit.; v2 123 792 7"3 2

l

'4hiting #2 106 576 571 5

i Careceli d2 722 4.57 9 J,56'3 2;

00:5 *2 63 317 222 2

C ta i3 53 227 241 5

i Cobb fl 68 245 340 5

urn #2 254 1,541 1,513 23 On il 255 1,4!2 1,12' 17 l

i IOIa kF.Jg$i;e I '.)

a i

l t

l 1

J

a s

3%

i The stove data is ex racted f :m 2e 12.'31 delay :ase w7te 13C '#3 :f

" Pure.7ase 13" ;c=tr was recuired :: rain ain te IZ resarie margin.

The total energy ;urchas:' ander the "Ft.-=ase 10" de-ar.: of 150 :Si f r i

1982 aas 336,215 %nes. Se l'0,000 Nh. cut:ack en ce reta:1,eiv le.

I i

c:st units represents a::r:xi:ately 12.3 :ercent :f the ene*qy :ua: asec.

Stancing at:ne, te a:cve figures my su; gest 23: a i m i cacact:y "ac::r tan 7C" ::ui: te 'ustf #ied n a'i:'d #:r:tc :u :. !!as. ": wever, ster tieents us: te facurse inu ce.;i-1::a a ::rd. i=, ~:r e.ta.:'e, wnen *Purcase 13" ; car is availabie during te :eak nc.;rs (as '; was),

there is less need ':r ;;cced s:Oragg ca:acity :: ree e :tak :ecr.ts.

It f:llou tha: tess pu: ping :cwer will te recuired tur'eg ue :ff :eak neurs s :r:vice mis ;eaki7s eneegy anc a ::rrts: ndirg recucti:n in 4

generati:n fr:m :.'e icwer c:s: ani: resa'u.

Generating ant:3 24: are :ncre cr;etitise lec:ne-'ca"y. wie ' u c.tase 10" energy at a ;iven reur. ay nc: t:e c=:ett:ive, hen me secs:f ca:1:n i

must go tr:ugn ce ;u: sing pr: cess. Se ;enalty 'ac :r f:r a ;iven ani:

to pr: vide ;usicing peer is abcut 1.4 F:r example, ass ming pur:hased

cwer at 20

nilis ;er kitewa : hour, a geaerst:r with an incrematal precucticn :sst :# 13 rt:1s. Lee is t.ae ec:ncmi: poice :e;,een ce ;eo sources. 4: wever, if the erergy us: he eners:tc :f#-:tak u s.::1/ :urcing pener ts to usec me *:l'cw'9g day en-cea<, t.9en : e ;eaersti:n.i;; ::s:

18 x 1.4 cr 25.2 tills /kwar :=rcared to 'Erchase :0" at 20 nii'sikwar.

i 6

i i l

• 14: ural */, re %r:hase '0" ;;*er 11 : Pas:er and s :ule :e. sed ever c:t.;n me 8-itia? ::s: cf we ;ere-a:icn is :n:/ 'I : itis /t.nr.

I In s.:n.ary, 2e 5:aff d:es not ::ncu with

r. Ti m's c:,cTusi:n tha:

4 i

l C:ns=ers F:wer C::n:any nas f:*: tag 'hMhase 10" ;.etc..ta rer, 0:ns; =.-s i

assf;nec ress:na::e va'.es :: 7e tu"< :c e- 03:aci y r*:'.f rec is well as i

I re :apacir/ fac :r assi;-ed, 3rd in.s :ne e ay ::su -e-e r::ealy l

l nic. a:ac.

i i

Orci.s':n e I:sf' -as fc:.nd 3 :1s:re:te:ies :er..ee9 e rate f4*399 t c ce Cens.=eas 7:>er :asti :ry u wa--an: '.r.rea ::nsite:1:1:e by n's Scar:.

1 l

In genersi, re a'lega:<cr.s a:e by :r. Ti.m are etrer.nf:t,-:ec r i

c:ns:1:;. a e eierence f :ct,':n as i: re 1::r:: 'a:e :ce :: use f:-

I

.21=la:ing celay c:su. In et sin t star:as, t. e 1:sf' 1as :etec ec i

j inc:rsistar:tes and era:rs in re.a:3*iais reviewec.

ese ia::rsistercies 4

\\

and err. s 2::eaa rinc:n 'n nar.re arc :: :: ef;ec: anf in:aa: :n me :a.-:

1 l

c3 : e Lice-see :: int-:c.ca a systecati: *

• as.

ne i cac: :' rese 1:a s

~

on ee ::ncasiens 2resen:e4 3, we a:.nsee u =tiya-c is imi.

4 l

l l

1 n.-aan_.,

,-,.n,_,.n.__,n_,

_w,,.nw_,---n

ATTAC.PGT S s

l s

l UfF78 STATES CF AMERICA l

'4Ct.E.sR RE%'t.ATORY CO*r?ISSI3 i

.a::. age ae 21.v.e. e.ee. v : ; i.. : et.. 2 A;t r

l t

In te '8a :er of

)

)

CCf.:'J.*ERS PGER 2PMY

)

Cocket !!cs. !0-22g

)

50-330 (Midland P' ants,.* nits 1 and 2)

)

i i

ppi

.*v. cp 5.n. r..e :

y.

....s.

i Sicney E. Feic :e:cses and says uncar can as #ci*cas:

j 1.

• a a Regi:r 1/I.ist-cr: enta! I::n::ds in. a : tisicr of Si:a Iaff;/

and Invi :rce n Inalysis, 'J.S. ?laclear Rep. st:ry Cercissdc..

"y i

refessi:nal :ualt'ica: :ns wert a:.-itted ints evidenca in Of s i

i or:ctecing :n Fear.ary 15,1977 felt:wi9g Tr.

i l

l 2.

• assis:ad 1. the :recart:1cn c' tne 1e:cr: 2recared :/ 5. Feld anc.

W. n.ncarsen for ::e A:mic Safety anc.fcens ng ! care :n A!! age:

31sc e:ancies Se neen C:ns :ers :cwer's ta:a il'ng of.'anuary 3, T7 l

anc *estimeny Presented s ce A::=ic Safety and '.icans'99 3:are in 1

j 2e Midland :-oceecing' c:nsist'ng :f 23 ;a;es.

l Me tcy co.i'y ma:

l i

l this reccet is true and c:rm: :s me :es: c' my knew' edge and teifef.

x f s/ 7 i

fiy 54cney F.,

s i.

e Sucscribed anc sxr, to bef:re 74 : sis A:ay c#.' day,1977.

e.Ed h A l

.iotary hohg My Ccaurissien ent es: N L L tvit.

j

\\'

(

l S.

4TTkME.YTC 1

L1:T E 5 ATES OF KJER:CA

• 1!CEAR REEL" A7tRY COM35:0!i l

I i

I

!!!CRE T-E AT ' TIC SATI ' 0 L**DS:':3 i"A0 i

)

b the

• attar cf

)

i C :53E15 PCWER C:MPMY j

Occket !:cs. 50-329

)

50-330

}

(*1dland Plants.

• nits 1 and 2)

)

i t

l i

i AF:I A't!T OF 'iAL"" J. 3L"*E1SD l

i l

i

'a!*:tr.'. Iunc!*stn Oe::sts tr.: says ancer Cath as #3Iss:

1 i

i

• e er;:::ys: :y ne r ars: 7 der ::=tissicn is.issis:1-t :: : a e

l Chie' of Ottist:n o':>er facoiy sne te f a:fif ty. 'dy :r:fassicral i

l

ua

f ficati:rs art i:.ac. ec :s r tastir:tny and ws-t ac:-1::ec ints I

evi:enes in :nf s pr:cteding :n **ar:h 24,190 folieming Tr. 5131.

I i

i 2.

• tssis.ad in ::te ;rt:arati:n :' et '?a;;r: Frt: arid by S. fem i

anc d. Guncersen for :::e A:: rite ! aft:y ard Licensieg ! card en Aliege:

)

Dis: toancies !atate Censnrs :>er's ta:a Filing cf.*anuary !!,1977 1

4 l

anc *estime y 8-tse ad :s the at::ni: Sa'ety anc '.t:ensing 2: art in 1

I the Mdline Need"q" :ensisti g of 33

ages

• te tsy :t-ti'y taa j

this recort-is true and c:r tet :: the best of my inculedge anc :eltef.

i i

saltar J. durcersen i

l i

Su:5:rited and swr 1 ts tefert e ?i: g tay of *ay, 19 7.

l A 0 0 % 4 ---- )

.10:ary hQi1Cf My "Jruri'.sion empf rts: A L LgqTg, oe J

-o-

^--w-

-r-W--ww*-ege

-mmer w w

'www-g-e-eyeeN--t-m'--ew--

ww-'meww

-*m-.svNP--WhwN-we

-w--*-Wm-9---

w

-e-m wmew--