ML20101B707
| ML20101B707 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 05/29/1992 |
| From: | Feigenbaum T PUBLIC SERVICE CO. OF NEW HAMPSHIRE |
| To: | NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM) |
| References | |
| NYN-92070, NUDOCS 9206050006 | |
| Download: ML20101B707 (2) | |
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e New* Hampshire Y
k Ted C. Feigenbaum Pre 6 dent and Chief Executive Officer N YN-92070 May 29,1992 United States Nuclear Regulatory Commission Washington, D.C.
1.0555 Attention:
Document Control Desk
References:
(a)
Facility Operating License No. NPF-86, Docket No. 50 443 (b)
Application to Amend Facility Operating License No. N P F-86 to Authorize North Atlantic Energy Service Company to Act as Managing Agent for Seabrook Station, Unit No 1 dated November 13, 1990 (c)
Letter dated May 13, 1992 from W. B. Ellis (Northeast Utilities) to J. M. Taylor (NRC)
Subject:
Scabrook Station O&M Budget Gentlemen:
On M ay 29, 1992, New ilampshire Yankee (NHY) received oral notification of an allegation that had been filed regaruing the pr. posed license amendment (Reference (b)l, S ecifically, it has been alleged that tiit Northeast I! ilities letter of May 13,1992 l Reference p
t (c)] prmided a Seabrook Station OkM budget for 1992 of $146.7 million and that this conflicted with May 7,1992 testimony by NilY representatives before the New llampshire Public Utilities Commission (NIIPUC) that the 1992 O&M budget is $113 million.
The $146/7 million is the present O&M ledget and has been approved by the Joint Owners.
In January 199.1 NHY completed a five year budget forecast for the operation of Seabrook Station following an NU affiliation. There were several reasons why the five year period was chosen. First, the Joint Owners typically look at a five year period for strategic and finar;;ial planning. Second, the transition from startup to steady state cpeations was to occur in the early years of the budget, therefore, the five year levelized costs more accurately refled a mature operating plant. Finally, it was planncd that Seabrcok Station would begin 18 month operating cycles in 1992. As a result, refueling outages would occur in two of three calendar years. Levelizing costs over five years accounts for the differing cost of refueling outage and non-refueling outage years.
i The results of this evaluation indicated a projected, leveli<ed O&M budget of $113.6 million (1991 dollars) for the five year period 1992 through 1996.
9206050006 920529
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PDR ADOCK 05000443 6 $\\
New Hampshire Yonkee Divisior, of Public Swice Company of New Hampshire
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b, G o t P.O. Box 300
- Seabrook, NH 03874 = Telephone!603) 474-9521
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.l nited States Nuclear Regulatory Comm ss on M ay 29, lo92 Attention:
Document Control Desk Page two 4
The $147.6 million O&M budget and the $113.6 million leselized five year forecast are not inconsistent for the following reasons. First, the $113.6 million is not the 1992 O&M budget as has been alleged. The $113.6 million levelized five year forecast assumed a 1992 O&M budget of $125.3 million (in 1991 dollars).
Second, the $125.3 million must be escalated to 1992 dollars, the basis for the current budget. When escalation to 1992 dollars is considered, the $125.3 million becomes $132.2 million.
Third, in late 1991, NHY deseloped a 1992 hudget and 1993-1996 forecast. Resulting
- from that analysis was a 1992 O&M budget of $137,7 million. The principal reasons foi the difference between the escalated affiliation budget and the 1992 budget were; increased NRC fees ($2.5 million) and delays in the transition to a Massachusetts implemented emergency plan and other miscellaneous effects ($3 million). The $137.7 million O&M budget was then increased in April 1992 to account for an increase in the scorr of the refueling outage ($7.5 million) and delay in the Massachusetts emergency plan transitmn ($1.5 million). Considering these adjustments, the resulting 1992 O&M budget is $146 7 million, the number cited in the letter from Mr. Ellis to Mr. Taylor [ Reference (c)].
in light of the explanation provided above, NilY believes that the NHPUC testimony provided by the NU witness on May 7,1992 was and is accurate.
Very truly yours, ps/c,q }s yda k?/n f, -
Ted C. Feigerihaum l
TCF: A MC/act/sss Attachment i
ec:
Mr. Thomas T. Martin Regional Administrator U. S. Nuclear - Regulatory (
aission i
Region 1 475 <\\llendale koad King of Prussia, PA 19406 j.
Mr. Gordon E, Edison, Sr. Project Manager Project Directorate 1-3 Division of Reactor Projects U.S, Nuclear Regulatory Commission p
Washingtort DC 20555 i
l Mr. Noel Dudley NRC Senior Resident inspector P.O. Box 1149 l
Seabrook, Nil 03874 l
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