ML20096H709
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g-Washington Public Power Supply System A JO1NT OPERATING AGENCY
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S Docket No. 50-513 g.
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M Director of Nuclear Reactor Regulation
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Mr. 01an D. Parr s.
Light Water Reactor Project' 5
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Branch No. 3
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U. S. Nuclear Regulatory Commission Washington, D. C.
20555 cm
Subject:
'WPPSS NUCLEAR PROJECT NO. 4 CONTRACTUAL AND FINANCIAL ARRANGEMENTS
References:
- 1) Letter, N. O. Strand, WPPSS, to A. Giambusso, NRC, Contractual and Financial Arrangement for WPPSS Nuclear Project No. 4, dated October 22, 1975.
- 2) Letter, J. J. Stein, WPPSS, to A. Giambusso, NRC, Submittal of Financial Data, dated May 29, 1975'.
Dear Mr. Parr:
In Reference 1 we requested that the Staff temporarily defer considera-tion of the Supply System's financial qualffications to construct WPPSS Nuclear Project No. 4 (WNP-4).
The basis for this request was that execution of the Participants' Agreements for WNP-4 had been delayed pending completion of secondary environmental impact statements pursuant to the Washington State Eevironmental Policy Act.
This letter is to inform the NRC Regulatory Staff that Participants' Agreements have been fully executed for 100% of the output of WMP-4 and for the Supply System's share (90%) of the output of WPPSS Nuclear Pro-ject No. 5 (WNP-5). As mentioned in Reference 2, WNP-4 and the Supply System's share of WNP-5 will be financed as one system.
The partici-pants in WNP-4 and WNP-5 are approximately 89 public and cooperative util,ities (consisting of 21 municipalities, 24 public utility districts and 44 electric cooperatives) located principally in Washington, Oregon, Idaho, and Montana.
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As you may be aware, by letter dated July 9,1976, we requested that the l
Atomic Safety and Licensing Board take steps to receive additional evidence from the Applicant and the Staff by the end of July,1976, with l
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. ipplir. ANTS YYuton :.s l
COHEN 64-603 PDR
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W. Olan D. Parr Page 2 l,.
. July 19, 1976 a view toward supplementing its Initial Decision with appropriate findings relating to the Applicant's financial qualifications to con-struct WNP-4. We are hopeful that a favorable supplemental Initial L
Decision will.be issued promptly thereafter, leading to the issuance of a construction permit for WNP-4 in the first or second full week of
.SeP.t. ember.,1976.,
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e The method of financing WNP-4 andr,the Supply System's share of WNP-5 m ?
presented to the Staff in Ref'erencT 2 in response to Staff Questions 1.(a)and1.(b).
In addition, the Atomic Safety and Licensing Board explored this method of financing at some length at the radiological health and safety hearings held in November,1975 (Tr. 820-845, 850-852).
An updated estimate of the total cost of WNP-4 (current as of May 31, 1976) is:
. (a) Total nuclear production plant costs
$ 991,463,000~1/
'.a (b) Transmission and general plant costs 12,327,000 2/
'(c) Nuclear fuel inventory cost for 91,210,000 first core
',. Total Estimated Cost
$1,095,000,000 Siting, fuel cycle costs, payments to vendors and preliminary construc-tion expenditures through May 31, 1976, for WNP-4 and WNP-5 are $21,074,0 and $7,896,000, respectively. Current estimates for WNP-4 and WMP-5 future expenditures (including fuel and owners' cost) are as follows:
WNP-4 WNP-5
'. Year
' f Expenditures Expenditures qy)-
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',.'. i977 S 72,997,000
'S 15,624,000
- Thru 1976 O!;
100,442,000 108,358,000
--.1978 i-229,672,000 160,091,000 5
'1979 326,031,000 271,351,000 198,'567,000 293,651,000 1980
- 1981, 131,970,000 228,899,000 1982
E 27,405,000 164,426,000 1983
'36,359,000 i
1984 157,000 if Including net interest durin'g construction, owner's costs, and allowances for escalation and contingencies.
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Nuclear fuel will be ourchased rather than leased.
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rege e v u i y 2.,,
o,v With' the execution of Participants' Agreements, financing of WNP-4 and
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WNP-5 will be continued by the issuance of approximately $2,718,000,000 of tax exempt revenue bonds in series from time to time during the i
period of construction.
The Supply System plans to issue these bonds n
the following approximate amounts and on the following schedules:
.Date of Issue
.. Amount
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$300,000,000 1977 1978 300,000,000 1979 450,000,000
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1980 600,000,000
.- ~1981 750,000,000 1982 318,000,000
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Each series of bonds issued will be on a parity with other bonds issued.
A scheduled summarizing financing activities through June 15, 1976, for all WPPSS construction projects is attached hereto.
Very truly yours, f
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D. L. RENBERGER
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Assistant Director Generation & Technology DLR:AGH:km Attachments cc:
JB Knotts - Conner & Knotts - w/att.
HW Phillips - UE&C - w/att.
JR Schmieder - UE&C - w/att.
EG Ward - B&W - w/att.
CR Bryant - BPA - w/att.
W Albert - NRC I&E - w/att.
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i CONSTRUCTI0tl PROJECTS FINANCING ACTIVITIES June 15, 1976 t
PROCEEDS EFFECTIVE PROJECT TYPE RATING
-sal.E DATE MATURITY PAR RECEIVED INT. RATE l
WNP1 tiotes MIG-1;AA 5/22/74 12/15/1976 77,000,000
$ 76,722,800 6.050 WNP1 Bonds Aaa;AAA 9/18/75 7/01/2017 175,000,000
.172,159,750 7.7269 WNP1 Bonds Aaa;AAA 2/04/76-7/01/2017 180,000,000
,179,715,934-6.83734 i
' W tl P 2 Bonds A-1;Aa*
'6/26/73 7/01/2012
. 150,000,000.
149,628,930-5.650 ' -
I W !! P 2 Bonds A-1;AA*
'.7/23/74 7/01/2012 80,000,000
. 79,864,055 7.2085 e
W !! P 2 Bonds AA;AA
- 11/26/74 7/01/2012 125,000,000 124,458,992 7.6667 WHP2 Bonds Aaa;AAA 3/06/75 7/01/2012 125,000,000*
126,813,477 6.7097 WNP2 Bonds Aaa;AAA 6/03/76 7/01/2012 120,000,000 118,845,130 6.634 W N P 3-Bonds Aaa;AAA 12/03/75 7/01/2018 150,000,000 147,876,742 7.867599 i
WNP3 Bonds Aaa;AAA 4/13/76 7/01/2018 100,000,000 99,444,851 6.481385 ~
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j W N P 4/5' Bonds A-1;A 7/24/75 6/01/1981 100,000,000 '
99,419,902 7.04099.,.-
l TotaljOutstanding 41,882,000,000 N
' NOTES _ RETIRED i
I W ?! P 4/5 -
Notes 3/20/74 12/15/1975 2,500,000 2,500,000 4.*700 W 11 P 4/5 Notes MIG-1;A 8/01/74 6/15/1976 15,000,000 15,056,867 8.007 ffotes l
WNP1 8/24/72 8/24/1973 1,500,000 1,492,879 2.925.
WHP1 tiotes
'A-1; AA 2/15/73 12/15/1975
,;'J '25,000,000 24,984,325 4.270 l
W N -P 2 totes A-1;AA 7/01/71 7/01/1974 15,000,000 14,775,100 3.550 11 N P 2 tiotes A-1 12/15/72 12/15/1974 40,000,000 40,000,401 3.500 i
WHP3 flotes 5/15/73 12/17/1973 2,000,000
'. 2,004,026 4.050 l
WHP3 Notes MIG-1;AA 10/01/73 6/15/1976 29,000,000 29,004,640 4.368
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- The first series of bonds for WNP-2 were upgraded to AAA ratings by both services subsequent to their issuance.
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' Docket No.' S0-513 WPPSS fiUCLEAR PROJECT !!0. 4 Contractual and Financial Arra.ncemert.-
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STATE OF UASHINGTON
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R. E. SMITH, Being first duly sworn, deposes and says:~ That he is i -
Hanager, Operations Division, for the WASHINGTON PUBLIC P0'.lER SUPM.i SYSTEM, the applicant herein; that he is authorized to submit the fm going on behalf of said applicant; that he has read the foregoing anc knows the contents thereof; and believes the same to be true to th:
best of his knowledge.
/k 1976 DATED
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R. E. SMITH On this day personally appeared before me R. E. SMITH to me known te L.
the individual who executed the foregoing instrument and acknowledged F
. he signed the same as his free act and deed for the uses and purpose mentioned.
'GIVEN under my hand and seal this
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