ML20092H148

Forwards BPA Announcing Initiation of Public Involvement Process to Assist in Evaluation of Const Schedules.Related Correspondence

ML20092H148
Person / Time
Site:	Washington Public Power Supply System
Issue date:	06/19/1984
From:	Reynolds N BISHOP, COOK, PURCELL & REYNOLDS, WASHINGTON PUBLIC POWER SUPPLY SYSTEM
To:	Bright G, Grossman H, Harbour J Atomic Safety and Licensing Board Panel
References
OL, NUDOCS 8406250367
Download: ML20092H148 (7)

Text

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s C:U'ETET W

law CFFICES OF BISHOP. LIBERMAN. OOOK. PURCELL & REYNOLDS imoo SEVENTCENTH STR E ET. N. W.

'84 JUh' 21 P3:07 i~ ~cw von-WAS HINGTON. O. C. 2 00 36 BesHoP, LIScnMAN & CCoM (aoa) as7-seoo as anomoway acw voar. scw vonn sooo.

TcLcx 44os74 iNTLAw us (aia) a.e-eeco TcLcx aaarer l

June 19, 1984 Herbert Grossman, Esq.

Dr. Jerry Harbour Chairman, Atomic Safety and Atomic Safety and Licensing Licensing Board Board U.$. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C.

20555 Washington, D.C.

20555 Mr. Glenn O. Bright Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Washington, D.C.

20555 Re:

Washington Public Power Supply System (WPPSS Nuclear Project No. 1)

Docket No. 50-460-OL Gentlemen:

Enclosed for your information is a letter from the Bonneville Power Administration to the Managing Director of the Washington Public Power Supply System announcing 1

the initiation by BPA of a "public involvement process" to assist BPA in evaluating the construction schedules for WNP-1 and WNP-3.

The letter indicates that BPA presently assumes that full construction will resume on 1

l WNP-1 and WNP-3 in July.1986 and July 1985, respectively.

I We are providing copies of this BPA letter to the Board mindful of our obligation to apprise the Board of 1

matters which bear on issues before it

)

Sincere ly, Nichoir S.

eynolds Counsel or Applicant Enclosure

(

)

cc:

Servica. List

7.

Department of Energy Bonneville Power Administration orrict or THE Aow.isTaxon P.O'. Box 3621 Ponknd.Omgon 97208 JUh 8 - 1984 BPWP-G-84-19 Mr. D. W. Mazur, Ma'naging Director Washington Public Power Supply System P.O. Box 968 Richland, Washington 99352

Dear Mr. Mazur:

As you know, the Bonneville Power Administration (BPA) is beginning the process of developing its budgets for Fiscal Years 1986 and 1987 and its rates for the

, period of July 1985 through September 1987.

This is especially significant because we must make final decision. before the end of this year on the assumptions to be used in our budgets and rates for those periods.

During the last few years, BPA has grown increcsingly more sensitive to public concern about major activities we undertake.

Therefore, we are beginning a public involvement process to examine whether we should continue to use our current assumptions about WNP-1 and -3 construction schedules in our 1986-1987 budgets and rate s.

Our current assumptions are that full construction will resume on WNP-1 and -3 in July 1986 and July 1985, respectively, and that they will be in commercial operation in June 1991 and December 1989, re spectively.

We also assume that construction and fuel costs will be financed through conventional financing.

To review these assumptions, we will conduct analyses similar to our previous analysis of Supply System projects which led to our recommendations to place WNP-1 and -3 in preservation status. We want to examine the funding levels we should assume for the two plants for the next two years.

In this public process, we will also consider alternative schedules for plant completion, impacts on BPA rates, and many other factors.

The public involvement process will occur in three stages.

First, we will ask the public, this month, to help us refine the alternatives and methods we should incorporate in our study.

Second, those interested will be kept abreast of the progress of the analysis while it is underway.

Third, we will solicit public response on the completed analysis this fall before refining it and incorporating the results in our rates, budget and resource planning process in December.

t /

Department of Energy Bonneville Power Administration Public Involvement I

P.O. Box 12999 I

Pcrtland, Oregon 97212 i

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T N '*'

• ALP OPPORTUNITY FOR INVOLVEMENT i

i' Issue: Washington Nuclear Plants (WNP) 1 and 3.

Action:

BPA is reviewing its assumptions about the schedules for WNP 1 and 3.

i l

Public Directly Affected: Northwest citizens.

l Backaround: Construction work on Washington Public Power Supply System's I

j Washington Nuclear Plant 1 (WNP 1) and 3 (WNP 3) is now delayed.

BPA has l

assumed construction of WNP 1 will resume on July 1, 1986, and construction of l

WNP 3 will res'me on July 1, 1985.

BPA is now reviewing these assumptions to i

see if they should continue to be used for BPA's 1985 rates and 1986-7 budgets.

4 l

Opportunities for Involvement: The enclosed Issue Alert describes the study BPA intends to undertake, the issues we intend to address, and the process we will follow.

This month, we would like the public to comment on our Study Plan:

our proposed approach our study, including the methodology 4.nd variables we intend to address. We will accept cosments on the Study Plan through July 2, 1984.

)

The draft Study Plan is enclosed.

I On June 20 - 29, we will hold public meetings throughout the region to l

describe the Study Plan and accept comment. Meeting dates and locations are listed on the back of this letter.

i l

1 In each city, we will hold two different forums. First, we will hold a " town

}

hall" meeting, at which we will describe our Study Plan and accept general r

i public coesment. Second, we will hold a technical workshop, where we will ask l

participants to give us more detailed comment on our methodology, variables,.

and treatment of issues which cannot be handled through quantitative analysis. You are welcome to attend either meeting, or both.

i We will perform our analysis this summer.

This September, we will issue our l

analysis for public review.

l For Further Information

Contact:

BPA Area or District Manager in your j

locality, or the-Public Involvement office in Portland, 303-230-3478.

Toll-free lines:

800-452-8429~for oregon outside of Portland; 800-547-6044 I

for Washington, Idaho, Montana, Utah, Nevada,' Wyoming, and California.

I t

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,_: ^ T -

l-

,Doona L. Geiger t

Public Involvement Manager

= Enclosures

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In 1984, the Bonneville Power Administration will have to reconsider

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construction will resume July 1,1965.

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on Washmgton Nuclear Plant 3 at j

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Nenhwest Electnc Power Planning

sufficient to pay all of its own costs Forecasting

Anything But i

and Conservation Act of 1980 (the l and to repay the Treasury, with 80 fX3Cf SCl8nCO

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Regional Act), gave lead

interest, the lion's share of the cost resconsibility for planning the l of the region's Federal multi purpose l

l region's power future.

dams. These included all of the costs The forecasts that led to construction i

associated with power production

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Hydro Base plus a large part of the costs associated with irngation.

projects in this region had to be made to years or mere before those Trere was a day when hydropower -

units could be broug*:t on line. It j

cheso hydropower - alone was l The onginal BPA wholesale rate of 2 takes a long time to get such units sufficient tn meet tne regen's powe' mills (two4enths of 1 cent) per licensed and built.

l mos.

kilowa:thour was enough for BPA to i

pay its way - with some left over -

Grand Coulee and Bonneville and 28 for many years.

It turneo out that the region's power r

other big Federal multi.puroose dams i l = built not just for power, but for plannm w w

ng a

udy 4

flood control and navigation and By 1965, BPA rates had to be crystal ball. They faded to foresee the irrigation as well - produced the increased, slowly at first, dramatically impact of higher cos3 on usage.

cheaoest power. But many non.

in recent years. The increases came They failed to foresee the rapid growth of the conservation ethic, or j

Federal, power onty dams prodsced partly because of higher costs i

conservation and fuel substitution all of the potential for cost-effective l

inoupensive power, too. This made associated with hydro additions and l

elc<tncity cheto for customers of espansion of the BPA transmission l

public and pnvate power alike in the system, but mainly because cf I

(e g. wood stoves). They failed to j

i foresee the recent nabortwide Northwest.

increasingly expenssve nuclear additions to the region's power downturn in the economy, a downturn BPA was created by Act of Congress

supply, that hit the Northwest harder than in 1977 to soil the Federal power.

other regions. So their forecasts -

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"""E BPA built none of the dams = just 1.cwcost hydro nevertheless still

• " Y "" Y# # " * *"O the transmission lines and related provides 80 percent of the region's te e facilities needed to bring the Federal power supply, and this hydro base t-t ned o o be too high.

power to market. But BPA was keeps Northwest power costs well j

required to sell the power at rates below the national average.

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Foreca:ts if not all, what part? SPA has etudied l

three basse scenanos, in which zero w W pecent of proveeenee We are now forecasting three levele WW g a th is 1

of growth - base (the level we think D'*""'"'

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.2" most liisely to occur), low and high, and we mudy altematives to coww all 7 * """Y ***"** "

in-.vol

- cost.

Financi"8 l

i We have deveioped a ruource b,

otrology which wee presented to the

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s m es region in May 1994, desenbing the Financing oppottumties can change l

i actions SPA proposes to take on new I.ong term conventional financmg i

38' i

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'g conewvetion and renomeem otraches out perments over the j

resources to respond to these

==fwtar' life of the profects, much l

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,,n l conditions of uncerteenty. An leeue like a home mongage. That lund of j

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. -.J Aiort on that subject is among those nnancing dried up for the Supply l

l tonist u

listed on the last page.

System as a reeuit legal challenges l

j related to its nuclear projects.

2.2 l tvWes Will long-term conventional hnancing An imposing array of be avembw wne emetruction i

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verlables and uncertainties

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underlies allpowerplanning.

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method, financing directly from i

curmnt EPA mvenou, wound BM rene rose racery a r979 83 as Sunory S enom

@mWmWa%

and omer new coen me,e knoc no me roe oeen gypyggyng, gg ppg yewe, sonowed by=== rams one.

vnowcor,.nreneo,meena am eeen one.

i uu.,= ec.eeennew me,we =

the omescu comp =md. A mird i

The negionai Act gave SPA possesty wouw es, sed out The Main issues l

power necessary to supply whatevw financing but not as long as i

new loads the utsties of the region -

conve'"onal bond financing. That j

We would like the puthe involvement investor owned and publicly ow.ed -

wund be for the Supply System to program to focus on nome mafor apply for. There are current go into the enorHerm bond market. A issues related to these two nucieer indications the region's utilities will hoy question here is whether SPA i

j plants. But we recogruas that some not place the full amount of future can promise to pay off Supply i

members of the puhlec well aise wish load growth on SPA.

System dette if legal protiiems j

t3 discuss the Supply System or i

nuedear energy in general, and we i

will liseen-Aversee nesidentiai neisii nates try nesien 3

sea.or wa p= e.ee ie, men, An imposing arrey of verlaties and 1

uncertainties undertie all power t

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recent hoory, an unimes inciuding l

SPA== vuinwenie a evens wnicn 2

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upon ='m me cwiniewy mer ""

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Men fiammy a mom vwieue seven of growm has bee n. nece-ry a 4

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• • n P*anas ser the future's 8 31 6.70 unowtain oumoon.

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i In ite WNP 1 and 3 eludlee, SPA vnli j

conei,ter a large number of 1

uncatainties and vertentes, inesueng I

i forcease, dependones en SPA py

• 1ncAmes w power supply, financing epnene and 4

• • • • • • 9v Nomeneet med annew rene se ne noen mer, her me neeener emee.

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Public Involvement Steps 'g.7 q.g. M M..s <w<~ :.

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The pubhc orwohoment program for be sent m achence to onornfuan and We expect to comotete evaluaten of WNP 1 and 3 wo smoke several steps.

groups we know to be mnresnd in all comments and announce our i

farst wd Come meeDogs and technCal matters, anC to ar'yone esse Conclusens by November 15

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workshops to fewsw the SasumpDcos who pequess one Requess r?oukt and me werid,0Mgy we are useg to be duecand to your neerest BPA area l

upcan the studes on whch current once or me Pubhc Irnohement Ottee BPA rs not tww proposmg any change l

schedules kr resummg construccon at BPnt Pornand headqueners. A hst m N current schecules kr WNP 1 i

were based of these onces a aciuoed an page8.

and 1 M N cunn mvew had 1

to proposses kr change, the procedures of the Na00nal Workshops wd be hekt in me knomn9 In early July, we wo eve 6uen e=---

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crees at specuhc tunes and places to commenn from me first tosed of i

be announced m 1,gs, along wem wntsw comments

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reconed by met tene. Wort to upcan l

Purttend. Oregon: June 2Ch21 me studes mW be done c1unng the At me bme. ne are only revoewung ana Eugene. Oregon: June 2122 summec By late August. me we oNor updatmg the studes on whch current l

Missoula. Montana June 25 bnetkngs on me irnenm resuta of meet constructoon scheoutes for WNF 1 and l

Burley. Idaho: June 26 new studies, in Seonmbec we wd 3 were based We are doeng Mrs so Rochland. Washmgton: June 2720 pubhcee the resuta and toquest that when we make budget and rates j

Seattle. Washungton: June 28 29 futmer pubhc comment. Thus, the decisens we can be sure they als

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pubhc wont senply be presented with based on me best possible Most of the meecngs wd include our conclusent totative to WNP 1 and onktmaton. Our revow also well 1

evening sessoons or the comenence S but wd base a chance 80 partcspan evaluate the costs of termma00n of

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of Mose who cannot attend dunng the at at stages The puble nd be ermer or both WNP 1 and 3 compared l

Cay Daybme workshops, for aR who muoked in determmmg the to completron on the current or some j

wesh to attend. we be SDecedy methodology to De used. lhe studes other schedule. We wa keep the i

desogned for tnose planneg to prowde to be perbemed. and me enerpteteoon pubhc tuny ontormed of new j

techncal aformaton. A study plan wm met may be pieced on reeusa.

unformabcn as at 4 Ceveloped.

4 1

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( Financial Studies We aieo win do an analyes of sPxe t

Other kples doet cowrage - me ratio of rewnum We will assess the availabinty and 80 I"#'est cosa - and omer facere Our pnmary need in this public I

debt service cosa for three kinds of met eNoct bond retings ginn by me j

hnancing (conversonal bonde, short.

'88"9 W involvemoet undertaking is a gm commente specinc to the WNP 1 and term bonde, revenue financing). We 3 cosse ard schedule assumptione i

vnli link each to the scenarios rolesed h budget impact for each scenario for our twee and budget t3 tim 6ng of the protects. We currently wWI be amessed anew, as wen me determitw.tione in the near term. But I

plan to make a vertesy of other impact on owners (me perncipating as noted, we also vnli listen to j

nnancial aseseemente including one

• • wned vunnesh commera reisted to me supply i

that identifice SPA's fined and decretionary costs. Our last such Finally, the potential impact on spa system or nuclear energy in generel.

aseseement showed about W percent Anances from anomame outcomes of I These broeder conceme may include l

of BPA's annual obNgations to be curent liegedon wW1 get a M M manere such as the institutional i

a r 1 cu, or naed.

hm am a number at imeuin currently imelving WNP 3 and the natum of the supply system, the i

hun % p and I

We win so a caen now analysis e anninand pmisen w 4 amt s show BPWe almilly to handle WNP 1 met noosener#y compNous me and 3 paymente for each econerlo Anencial acessernent of bem W 1 -

alorg with ideas on the 6

whole at the some time galling and 1

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'sesymente to the U.S. Doesury back I

l an scheduleL SPA hee fallen behind Uncopeinly sunounding pesem -

Ard if anyone wishes to comment on h and is mehing mejor efforts to calen het4Nue of SPA and omer project the reissionship of scenerlos to the up on these overdue permente.

eponeem eies mum be mien inn n,,,,,,,,,,,,,,,, pi,n,,,

Timeliness, risk, and other pertinent asseurW M detonnining a prudent Wildlite Plan, we will be listening.

l cherectorieties of eeen potentiel eeutee for the two profeem.

fineneing mechamem wNl be -

l l-1 I

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