ML20098C747
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E Woshington Public Power Supply System l Iy l5 f A JOINT OPERATING AGENCY i
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P. O. SOE SOS 3000 Gro. WAGNINGTON WAY RICMLAND. WASNINGTON 99352 PMont(509) 948 1618
/ Docket Nos. STN 50-508 February 26, 1976 and STN 50-509 M3-76-193 Mr. Benard C. Rusche, Director 9 4 Office of Nuclear Reactor Regulation .
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U. S. Nuclear Regulatory Commission \
A Washington D. C. 20555 LU -
Attention: Mr. Olan D. Parr, Chief f'
' MAR 2 197O~ a" As.
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Light Water Reactors d'** J Project Branch 1-3 ,
Division of Reactor Licensing. g
Subject:
WPPSS NUCLEAR PROJECTS NOS. 3 AND 5 AMENDMENT TO WNP-3/5 LICENSING APPLICATION
Reference:
Letter, Olan D. Parr to J. J. Stein, " Request for Additional Infonnation", September 26, 1975.
Dear Mr. Rusche:
The Washington Public Power Supply System is filing herewith twenty-five (25) copies of Amendment No. 32 to the WPPSS Nuclear Projects Nos. 3 and 5 License Application.
The purpose of this amendment is to provide further information concerning the financial qualifications of the Washington Public Power Supply System and other partners in the WNP-3/5 projects as requested in the referenced letter.
In accordance with a previous request by the Nuclear Regulatory Commission staff, this amendment to the License Application is being numbered sequentially with previous amendments to the Preliminary Safety Analysis Report. This transmittal represents the second revision to the License 2074 84092f0173e40824
^ PDR hE84-603 l
Mr. Benard C. Rusche February 26, 1976 Page Two G03-76-193 Application document (the application was previously revised in Amendment 11). All other amendments (1-10 and 12-31) have been amendments to the Preliminary Safety Analysis Report and have not affected the License Application document.
Very truly yours, ,
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h [.O. L. RENBERGER Assistant Director . -
Generation and Technology DLR:GCS:ct cc: Mr. J. B. Knotts, Jr., Conner and Knotts ,
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Lctt,r, D. L. R:nb2rg:r to B. C. Rusche, " Amendment to WSP-3/5 Licensing Applicatien" -
l STATE OF WASHINGTON ss COUNTY OF BENTON )
D. L. RENBERGER, Being first duly sworn, deposes and says: That he is the Assistant Director, Generation and Technology, for the WASHINGTON PUBLIC POWER SUPPLY SYSTEM, the applicant herein; that he is authorized to submit the foregoing on behalf of said applicant; that he has read the foregoing and knows the contents thereof; and believes the same to be true to the best of his knowledge. ,
DATED k N , 1976 i D. L. RENBERGER On this day personally appeared before me D. L. RENBERGER to me known to be the individual who executed the foregoing instrument and ackncwledged that he signed the same as his free act and deed for the uses and purposes therein mentioned.
GIVEN under my hand and seal this JRday of Mdu m,
, 1976.
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[MQbWw Notary Public in and for the State of Washington Residing at d W ,m [
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C QUESTION Provide for each unit of the subject facility the most recent cost
- 01. estimates grouped as follows: (a) total nuclear production plant costs; (b) transmission, distribution, and general plant costs; and (c) nuclear fuel inventory cost for the first core. Also, complete the attached schedule titled, " Plant Capital Investment Summary",
for each unit using the most recent cost estimates. Indicate the site labor requirements for each unit expressed as " manhours /kWe".
Indicate the average site labor pay rate in dollars per hour (including fringe benefits) effective at month and year of NSSS purchase.
ANSWER I
!' (a) Total nuclear production plant costs hk '
$510,677,000 $482,033,000 (b) Transmission, distribution CL and general plant costs I 24,588~ 11,086 (c) Nuclear fuel inventory I cost for the first core 52,486 82,281
'The amounts shown for (a) and (b) above represent direct construction costs.
The amounts shown for (c) excludes interest expense.
See Attachment 1-1 WNP No. 3 " Plant Capital Investment Summary".
( See Attachment 1-2 WNP No. 5 " Plant Capital Investment Summary".
Site labor requirements in "manhour/kWe" (includes contingency) 10.2 8.9
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Average Site labor pay rate August 1975 (rate at NSSS purchase not available) 15.25 16.00
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l QUESTION If nuclear fuel for the facility is to be acquired by lease or other O2. arrangement than purchase, submit copies of the lease or documents
\ relating to the "other arrangement".
ANSWER
{ Nuclear fuel will be acquired by purchase. f QUESTION h Provide the earliest and latest estimated dates for completion of construction of each unit.
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6 ANSWER The earliest and latest dates for completion o . struction are . I as those specified in the original applicati . They are 1 uary 1, and January 1,1983, respectively, for WN - and July 1, 9 and Ju y ,
1984, for WNP j QUESTION For each investor-owned utility complete the attached schedule titled,
" Sources of Funds for System-Wide Construction Expenditures During Period of Construction of Subject Nuclear Power Plant", through the year of earliest estimated completion of WNP-5. Provide a detailed explanation of the assumptions upon which the " Sources of Funds" statement is based.
These assumptions include, but are not necessarily limited to, (a) rate of return on average common stock equity; (b) preferred stock dividend rate; (c) growth rate in KWH sales, revenues, expenses, interest charges l and net income; (d) common stock price / earnings ra~tio or the market / book I
ratio with respect to the projected'comon stock offerings; (e) common
! stock dividend payout ratio; (f) target capital structure; (g) resultant SEC and indenture interest coverages.over the period of construction; and (h) long-term and short-term debt interest rates.
ANSWER L
( As stated in the answer to question 6, the ownership share of WNP-5 is not firmly established at this time. Therefore, the requested schedule with respect to WNP-5 is not applicable.
With respect to WNP-3, the investor-owned utilities feel that the information requested is in excess of what is required from an " established organization" (10CFS50,AppendixC). In lieu thereof, the investor-owned utilities have submitted the following:
The investor-owned utilities have the following ownership interest l in WNP No. 3: l Ownership Interest Pacific Power & Light Company 10%
Portland General Electric Company 10 Puget Sound Power & Light Company 5 The Washington Water Power Company 5 Total investor-owned ownership interest 30%
Each of the four investor-owned utilities will finance their ownership shares of WNP-3 in the same manner as the balance of their respective construction programs, viz., short-term borrowing, sale of equity securities, proceeds from first mortgage bonds, internally generated funds, leases or other executory arrangements and other secured and unsecured transactions or construction
. financing.
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1 QUESTION
- 5. For each investor-owned utility, provide calculations of net earnings !
and interest coverage for the most recent twelve months' period using j the definitions of net earnings and annual interest requirements (on debt presently outstanding) using the most restrictive test set forth in the mortgage bond indenture. Assuming a range of interest costs considered realistic by the utility, state the additional amount of
. first mortgage bonds which could be issued under the most restrictive test based on net earnings as defined by the indenture for the most recent twelve months' period.
ANSWER See Attachment 5-1 " Calculations of Net Earnings of Investor-Owned Utilities".
QUESTION h Describe in detail the ownership shares and the financing plan for WNP-5 which was not firmly established at the time Amendment No.11 was sub-mitted to the Commission.
ANSWER I
The ownership shares of WNP-5 are not firmly established at this time. At present, the Supply System expects to have a 90% ownership share of Nuclear
(. Project No. 5 with the remaining 10% ownership held by one investor-owned utility. ,
It is anticipated that the Supply System's ownership interest in WNP No. 5 will be financed by the issuance of revenue bonds. All projects heretofore undertaken by the Supply System, except Nuclear Projects Nos. 4 and 5, have been financed as separate systems. It is anticipated that the Supply System's ownership interests in Nuclear Projects Nos. 4 and 5 will be financed as one system.
gd The basic olan for the Supply System's ownership interest is one of selling each public Participant (either Public Utility Districts, Municipalities or Cooperatives) the rights to a specific share of the output of the Project.
In return, the Participant promises to pay the same specific share of the annual Project budget, which will include debt service and all fixed and variable Project costs each year to support operation at a level requested by the Participants. .
To the extent surplus power is available from the Project, WPPSS will use its best efforts to secure separate contracts for its sale; however, the Participant's obligations are not affected by the success of WPPSS in accomplishing these surplus sales. The basic power sale document is the Participant's Agreement, j which will be executed about the time the construction permit is granted.
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1 t I 3rior_ to that_ initial financing is supported to a maximum level of $100 M
- sy Option Aareeinents. Ine vpuun np eemenc gives eacn signer (93 Option Participants, consisting of 25 municipalities, 24 districts and 44 electric cooperatives located principally in Washington, Oregon, Idaho and Montana) l an option to obtain a share of the Projects output under the Participant's (
Agreement at least equal to his Final Option Share. Linder the Option Aareement I a utility has the same absolute obligations to repay the 5100 M anthnrivari as ne =ou m in um rarticipant's agreement: however, he is not obliged to take
}positionintheParticipant'sAgreement.
Because of possible delay'in the execution of the Participant's Agreements
.and the issuance of long-term bonds the Supply System presently anticipates obtaining a second aroup of opticn aareements to support an additional S100 M to orovide firancial e"----+ #ae continuina work on Mucipar Projects Nos. 4 and S hounnri ' uno lQ7A bhan it is estimated tlat the obligations and expendi-tures together will have reached the maximum amount permissible under the first Option Agreements.
The Participant's Agreement, when signed, will replace the Ootion Aareement and take over ali rinancial oblications.
QUESTION h Provide for each of the four investor-owned companies the following information:
I (a) Describe the nature and amount of the most recent rate relief action (s) and its anticipated effect on earnings and on funds available for construction. Provide copies of the rate order and opinion. In addition, indicate the nature and amount of any pending rate relief action (s). U 1 the attached form to provide this information; ANSWER SeeAttachment7(a)-1.
1 QUESTION Copies of the 1974 Annual Report to Stockholders; ANSWER SeeAttachment7(b)-1.
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'I, QUESTION
( ) Copies of the 1975 1st quarter, 2nd quarter, (and 3rd quarter when available) income and retained earnings statements and balance sheet. Provide the same statements for the most recent 12 months' period. Also provide copies of similar statements for the corresponding periods ended in the previous year; and
. ANSWER SeeAttachment7(c)-1.
QUESTION omplete the attached fom entitled " Financial Analysis" for the years ending December 31, 1974 and December 31, 1973.
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ANSWER
, See Attachment 7(d)-1.
QUESTION
. way of updating Amendment No.11, provide the following additional i ormation:
(a) Indicate if WPPSS has fim contracts covering the entire electrical output capability of WNP-3 and WNP-5. If not, state the status and proposed alternative financing plan; ANSWER i
The Supply System has firm contracts covering the entire electrical output capability of WNP-3. As discussed in question 6 above, the financing plan for WNP-5 is not firmly established at this time.
QUESTION Copies of representative samples of contractual commitments as well as samples of the " Net Billing Agreements" for WNP-3; ANSWER See Attachments as follows: I 8(b)-1 WNP-3 Net Billing Agreement 8(b)-2 WNP-3 Ownership Agreement 8(b)-3 WNP-3 Project Agreement with BPA 8(b)-4 WNP-3 Power Sales Agreement
i-8 3 QUESTION
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. Describe in detail the contractual arrangements for WNP-5 which was not firmly established at the time Amendment No. 11 was submitted to the Commission; and i ANSWER lAsdiscussedinquestion6above,thecontractualarrangemen are not firmly established at this time.
- QUESTION
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. ( ie of representative samples of contractual commitments for ANSWER
)
See attachments as follows:
8(d)-1 WNP-5 Option and Services Agreement 8(d)-2 WNP-5 Participants Agreement QUESTION f' Provide representative copies of excerpts from state statutes on which each consumer-owned utility is relying as authority for its rate covenant. Also, describe the procedures used by the consumer-owned utilities in setting rates or charges for power and energy and other services.
ANSWER See attachment 9-1 for excerpts from Washington state statutes on which Washington public utility districts (54.16.040) and cities (35.92.050) rely on as authority for their rate covenant. Such excerpts are representative of each consumer-owned utility.
g Each consumer-owned utility's Commissioners (elected officials who act as a board of directors) sets its own rates or charges for power and energy and ot;:er services on a cost recovery basis including an appropriate amount for contingency reserves. These rates are not subject to review by any state agency.
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s NRCFORM 19t e uJ, NUCLEAR REOULATCGY COMMISSION DOCKET NUM1ER
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STN SC-$@?!p
'. NRC DISTRIBUTION Foa PART 50 DOCKET MATERIAL l TOI FROM: DATs OF DOCUMENT I Mr Rusche Washington Public Pwr Suppi: 2-26-76 '
Richland, Wash oave receive D L Renberger 3-2-76 h ETTER ENOTont2E D PROP IN*UT PORM NUMBER OF COPIES RECEfvED (
- soRiomAL BUNCLASSIFIE D I
OCOPY 3 signed EMSC lPTION ENCLOSU RE
-f Ltr notarizec 2-26-76....re our 9-26-75 ltr* Andt #32 to the License A$ plication: Consist:
.....trans the following: of furnher info concerning financial qualif-
. ications.......,...in 2 binders marked "attchments part 1" & " attachments part 2"
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. . . . . .and noting that this is the second revision to the license applicatson........
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(7,5 cys,'. encl rec'd)
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- FLANT NAME
- WPPS 3 & 5 x% .
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SAFEIY FOR ACTION /INFORMATION ENVIRO 3-2-76 enf w
ASSIGUED AD : D, % f, e, . ASSIGNED AD .
[j / BRANCH CHIEF : p. , ,, -'
BRANCH CHIEF : ;
/ PROJECT 1 AMAGER: p b o g ,, , & y PROJECT MANAGER . . N e v , f .s
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LIC. AS'ST. : J, t c ( u,.) - LIC. ASST. :
INTERNAL DISTRIBUTION -
/, REG FILE SYSTEMS SAFETY PT.AMT SYRTFN9 FMUTWn TFNn
_/ NRC PDR METNEMAN TFnFnco ERNST ~
/ I&E Itl McMRnEDER BENAROYA BALLARD
_/ OELD W LAINAS SPANGLER
__ COSSICK & STAFF ENGINEERING IPPOLITO
- MIPC MAcrAny SITE TECH
/ CASE 1)v KNIGHT OPERATING REACTORS GA!O11LL HANAUER SIHWEIL STELLO STEPP HAnf FMs PAWLICKI HUDIAN
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OPERATING TECH PROJECT MANAGCMENT REACTOR SAFETY EISENHur SITE ANALYSIS
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BOYD ROSS SHA0 VOLLMER P. COLLINS NOVAK BAER BUNCH
[,, / ' PETERSON HOUSTON ROSZTOCZY CHECK SCHWENCER GRIMES J. COLLINS KREGER
_ . '/GLIZ HELTEMES AT & I SITE SAFETY & ENVIRC
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SKOVHOLT / SALTZMAN ANALYSIS l / RUTBERC DENTON & MULLER EXTERNAL DISTRIBUTION CONTROL NUMBER "
,,, M LPDR 171e rf m . . u.i u b NATL LAB 4eVL (s.) / BROOKHAVEN NATL LAB
/ TIC REG. V-IE ULRIK50N(ORNL)
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(" P. O. Box 968 30C0 GEo. WASHINGTON W AY RICHLAND, WASHINGTON 99352 PHONE ( 509 ) 9 46-D 6 81 July 30, 19T.h Mr. Edson G. Case gQl99 /M*,$.\
Acting Director
, Directorate of Reactor Licensing 8/ X' Y,h U. S. Atomic Energy Commission d p,ll'1r*j"\--P Washington, D. C. 20545 g $d NO2
Subject:
WPPSS NUCLEAR PROJECTS NO. 3 AND 5 P kt I- : l'7?:> %b! ,
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CONSTRilCTION PERMIT APPLICAT10i4 G- ,D/ l DOCKEi STN 50-505, STN 50-509 '.giOf e.;3 ,NT/ l
Dear Mr. Case:
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l In accordance with the requirements of 10 CFR 50, the Washington Public Power Supply System (WPPSS) submits herewith the following documents in connection with our application for ccnstruction permits for WPPSS Nuclear Projects Numbers 3 and 5 (WNP-3 and WNP-5).
Three signed originals and Twenty-five (25) copies of the License Application Twenty-five (25) -
copies of Information Requested by the At.torney General for Antitrust Review Seventy (70) copies of the Preliminary Safety Analysis Report The applicable license fee for this application was paid at the time of docketing review on March 5,1974.
The Environmental Report in support of this project is currently being revised to include the addition of WNP-5, and will be submitted on August 15, 1974..
Each of the nuclear power plants will utilize a Combustion Engineering System 80 Pressurized Water Reactor Nuclear Steam Supply System. In support of the standardization efforts of the nuclear industry, we have referenced the Combustion Engineering Standard Safety Analysis Report (CESSAR) in applicable portions of the project PSAR.
The project site is located near the community of Satsop in Grays Harbor County, Washington.
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- '* ;Mr.LEdson'G..; Case Page 2~of.2- ,
-l Due'to the fact that ownership agreements relative to WNP-5 have.not been completed as of this date, the information requested by the Attorney
-General for' Antitrust Review is confined to WNP-3 and does--not address itself to WNP-5. Such information as is-currently available is being submitted under separate cover pursuant to discussicns between Washington, D. C. counsel for the Supply ~ System and attorneys for AEC and the Department of ' Justice.'- A: soon as the , ownership arrangements are finalized, the
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' Antitrust Information will be amendsd to address itself to WNP-5.
Very truly yours,--
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J. . STEIN
- Managing Director 2 JJS:GCS:ct-
! Attachment cc: Mr. P. J. Hannaway, Ebasco Services -Incorporated '
Mr. P. C. Otness, Bonneville Power Administration Mr.'J. B. Knotts,_ Jr. , Conner, Hadlock & Knotts i
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f-TRU C INFO .
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Richtsnd, ,is Aingten 7'-30-74 8-2-7L X J.J. Stein
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CLASS C. CLASS. PROP INFO INPUT NO CYS REC'D . DOCKET NO:
STN-50-508-509 ESCRIPTION: 1.tr notari::cd 7-30-74. ...trans the ENCLCSURES:
folicr.cing for a Class 103 Const.Per::it & C1. . . : ..w?I.IchTIC.: notarized 7-29-74..(3) si.-.ed -
for 2 Units. -
(25) . cys for Unit 5
'. PSAR- Vol's 1 thru 15....RE: C ES S A~.-)I!r -
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- Lic fee ree'd 3-5-74.... Appl accepted 470. . . . incorporated into PSAR (701 sc:s for~ dochetin;; & reyicu 8-2-74..P.ER *
- 3. ANTI!TRr5T ".ATT for unit 3 c .1 y . . . .
O'Ricily (FM(L) ' info for unit 5,to be submittn 10::
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- 4. ENVI*).O REPT. .';CT W".ITTE') ?? T7 ~ ~ '
PL NT U.12'Z : iFPSS Nuclear Project l' nits 3-5 5 revice to be s u ., . ::: n : .'
. L.gc+ntence te in:1u.de Unit 5. !
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