ML20098F617

Confirms Status of Contractual & Financial Arrangements. Requests Consideration of Financial Qualification Be Deferred

ML20098F617
Person / Time
Site:	05000000, Washington Public Power Supply System
Issue date:	10/22/1975
From:	Strand N WASHINGTON PUBLIC POWER SUPPLY SYSTEM
To:	Boyd R Office of Nuclear Reactor Regulation
Shared Package
ML20093C821	List: GO2-76-563, Application for Ol.Environ Rept - OL Stage Also Encl. W/O Environ Rept ML20093C818 ML20096H672 ML20096H687 ML20096H696 ML20096H709 ML20098C636 ML20098C644 ML20098C647 ML20098C657 ML20098C670 ML20098C683 ML20098C691 ML20098C698 ML20098C708 ML20098C712 ML20098C722 ML20098C747 ML20098C749 ML20098C757 ML20098C759 ML20098C766 ML20098C771 ML20098C776 ML20098C807 ML20098C837 ML20098C852 ML20098C863 ML20098C876 ML20098C883 ML20098C885 ML20098C910 ML20098C933 ML20098C936 ML20098C944 ML20098C957 ML20098C966 ML20098C976 ML20098C981 ML20098C987 ML20098C998 ML20098D000 ML20098D009 ML20098D014 ML20098D028 ML20098D036 ML20098D047 ML20098D057 ML20098D068 ML20098D070 ... further results
References
CON-WPPSS-021A, CON-WPPSS-21A, FOIA-84-603 GO1-75-238, NUDOCS 8410030190
Download: ML20098F617 (3)

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Washington Public Power Supply System A JOINT OPERATING AGENCY 9

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October 22, 1975

. Docket Mos. 50-460 G01-75-238 50-513 Mr. Roger Boyd, Acting Director Division of Reactor Licensing Division of Nuclear Reactor Regulation U. S. Nuclear Regulatory Commission

. Washington, D. C. 20555

Subject:

WPPSS NUCLEAR PROJECTS NOS. 1 & 4

' CONTRACTUAL AND FINANCIAL ARRANGEMENTS FOR WPPSS NUCLEAR PROJECT NO. 4

Reference:

Letter, JJ Stein, WPPSS, to A. Giambusso, NRC,

" Submittal of Financial Data," dated May 29, 1975.

Dear Mr. Boyd:

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The purpose of this letter is to confirm what we have advised your staff during the last two weeks regarding the status of contractual and financial arrangements for WPPSS Nuclear Project No. 4 ("WNP-4") and, to request that consideration of the financial qualifications of WNP-4 be deferred.

In the reference, we stated that execution of the Participants' Agreements for WNP-4 would be completed "about the time of the Construction Territ' .

It has now been determined that these agreements should not be executea until secondary environmental impact statements a.e completed. Ti'ese statements are being prepared to avoid litigation or threatened litigation against certain of our Participants. This threat of litigation is bacmi on the theory that such statements are required under recent interpretations of the Washington State Environmental Policy Act (SEPA). These environmental impact studies, which relate primarily to socio-economic aspects of the use of power from WNP-4 by these Participants, must be completed before the Participants can execute the Participants' Agreements. It is essential to the financing of WNP-4 that there be no legal obstacle to the execution of these Participants

• Agreements. Under these present circumstances, it does not appear that the Participants can sign these agreements until the impact statements are completed.

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• Mr. Roger Boyd October 22, 1975 Page 2 G01-75-238 Until the Participants' Agreements are signed, the WNP-4 Project and WPPSS Nuclear Project No. 5 ("WNP-5") are limited essentially to funding in the amount of $100 million to cover preliminary design and engineering, licensing, site preparation and initial equipment procurement and construction costs. These funds must also cover contract termination, site redress, and other costs in the event of cancellation of either project. Reservation of the estimated cancellation and termination costs was not considered significant since the permanent financing was expected to be available by the time the Construction Permit for WNP-4 was approved.

Considering all expenses and contingencies, such'as termination charges and potential site redress costs, it has become apparent that the pmsently assured funds for WNP-4 (and WNP-5) would be substa' tially consnitted upon receipt of the Construction Permit or soon thereafter.

For this reason, we must request. a delay in the issuance of the Construction Pem*: for WNP-4.

We do not believe that issuance of a Construction Permit for WNP-4 should be delayed beyond the time required to prepare and publish draft and final supplementary environmental reports, which is now estimated to require six months.

This request relates only to WNP-4 and not to WPPSS Nuclear Project No.

1("WNP-1")atthesamesite. The financial and contractual arrangements for WNP-1 and WNP-4 are independent of each other.

Funds on hand for WNP-4 (and WNP-5) are sufficient to maintain our pmsent schedule, including contingencies and to redress the site (s) in the event that, for any reason, we become unable to complete the financing arrangements.

Very truly yours.

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-)t4%.d N. O. STRAND Assistant Director Generation & Technology NOS:AGH:km cc: CR Bryant - Bonneville Power Administration J3 Knotts - Conner, Hadlock & Knotts JR Schmieder - United Engineers & Constructors  !

EG Ward - Babcock & Wilcox l

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,  ! Dock:t Nos. 50-460 and 50-513

CONTRACTURAL AND FINANCIAL ARRANGEMENTS

. FOR WPPSS NUCLEAR PR0 JECT NO. 4 I

STATE OF WASHINGTON ) !

) ~s s COUNTY OF BENTON ).

N. O. STRAND, Being fiI,st duly sworn, deposes and says: That he is the Assistant Director, Generation and Technology, for the WASHIhGTON PUBLIC POWER SUPPLY SYSTEM, th'e applicant hereir.; 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.  :

. D4TED ded/k J2 , 1975

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v /d N. O. STRAND '

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On this day personally ecpeared before me N. O. STRAD to me '<n:,.in to be the individual who executed. the foregoing instrument and acknowlecgcd net ne signed the same as his free act and deed for the uses and purposes therein mentioned. ,

GIVEN under my hand and; seal this J '/~/ day of 8'c 7d/u ,1975.

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