ML20107K801
| ML20107K801 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 11/01/1984 |
| From: | Selby J AFFILIATION NOT ASSIGNED |
| To: | |
| Shared Package | |
| ML20107K765 | List: |
| References | |
| CON-#484-70 OL, OM, NUDOCS 8411130282 | |
| Download: ML20107K801 (3) | |
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004mg 3A-AB-69 g
Question:
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1 In Mr. Spring's testimony, Page 7, he states that it was assumed that a decision will be made in 1987 to abandon the Midland Plant.
L'hy i s Consumers Power waiting until 1987 to finalize the abandonment deci-sion? Please provide any studies that support that decision.
Answer:
Consumers Power Company is not waiting until 1987 to finally determine what it will be doing with the Midland plant now that construction has ' ceased. The Company is not planning to resume Midland construction or to spend any money for that purpose in 1985, 1986 or anytime in the future. The Company will not unilaterally resume Midland construction in 1985, 1986 or thereafter.
Only if. appropriate g
governmental' agencies and officials propose resumption-of construction by Consumers Power Company as being in the public interest, and the financial connunity or someone else is willing to co=mit the funds necessary to ' enable com'pletion, will the' Company consider resuming construction. In order to maximize recovery, the Company intends to carry ou.c two years of surveillance and maintenance activity on the plant and has taken steps to have its NRC construction permits continued. It has also solicited bids on the S300 million of nuclear fuel which sould have been used at Midland in an effort to dispose of the fuel.
The surveillance and maintenance activity vill cost approximately $10 million per year plus property taxes. By keeping the-plant properly maintained and retaining the construction permits the Company has a more marketable product because it will be able to keep a documented, NRC-approved quality assurance program in place during that period. Th Company's plan is to allow two. years to see whether some outsider who is interested materializes.
In the meantime, the Company will sell any component or sys' tem ici the plant that does not prevent possible use of the plant as a whole. If there is no one interested in finishing the entire plant, the Company will no later than 1987 do whatever is necessary to claim an abandonment loss for" federil incor.e tax purposes.
-The income tax implications of this
. decision have been explained 'oy Mr. Schwass and Mr. Spring.
See the response to 3A-AG-107 and 3A-AG-!G8.
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John D. Selby, being' first duly sworn, states that the above response is true and correct to the best of his knowledge, information or belief.
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Sworn to before me and subscribed in my pres'ence th s 1st day of McVember, 1984.
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Debra Lynn Millerv 1
Notary Public,. Jackson County, Michigan
/84'1113Og2 PDR ADO O
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My Commission Expires:
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Revised 4/25/64 OM/OL SERVICE LIST L
Mr. Frank J. Kelley, Esq.
Mr. Steve Cadler g'f '
-9 f;M l27 Attorney General of the 2120 Carter Avenu'e State of Michigan St. Paul, MN 55108 NW. Carole Steinberg, Esq.
Assistant. Attorney General Atomic Safety 6 ' Licensing Environmental Protection Div.
Appeal Board 720 Law Building U.S. Nuclear Regulatory Commission Lansing, MI 48913 Washington, DC 20555 Mr. Myron M.'
Cherry, Esq.
Mr. William Clements (2) i Cherry & Flynn _
Docketing & Services 3 First National Plaza U.S. Nuclear Regulatory Commission Suite 3700 Office of the Secretary.
Chicago, IL 60602 Washington, DC 20555 Mr. Wendell H. Marshall Ms. Mary Sinclair 4625 S. Saginaw Road 5711 Summerset Street Midland, M1 48640 Midland, MI 48640 Mr. Charles Bechhoefer, Esq.
Dr. Jerry Harbour Atomic Safety & Licensing Atomic Safety & Licensing Board Panel Board Panel U.S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission East-West Towers East-West Towers Room E-413 Room E-454 4350 East-West Highway 4350 East-West Highway Bethesda, MD 20014 Bethesda, MD 20014 Dr. Frederick P. Cowan Atomic Safety & Licensing Atomic Safety & Licensing Board Panel Board Panel U.S. Nuclear Regulatory Commission 6152 N. Verde Trail Washington, DC 20555 Apt. B-125 Boca Raton, FL 33433 Mr. Michael Miller, Esq.
Mr.' William D. Paton, Esq.
Isham, Lincoln & Beale Counsel for the NRC Staff 3 First National Plaza U.S. Nuclear Regulatory Commission Suite 5200 Washington, DC 20555
. Chicago, IL 60602 Mr. D. F. Judd Mr. Frederick C. Williams Senior Project Manager Isham, Lincoln & Beale The Babcock & Wilcox Company 1120 Connecticut Ave., N.W.
P.O. Box 1260 Suite 325 Lynchburg, VA 24505 Washington, DC 20036
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OM/0L S;rvico List (Cont'd.)
Pcg2 2 Ms. Barbara Stamiris Ms. Lynne Bernabei 5795 North River Road Government Accountability Route 3 Project of the Institute Freeland, MI 48623 for Policy Studies 1901 Q Street, N.W.
Washington, DC 20009 Mr. John Demeester, Esq.
Mr. James E. Brunner, Esq.
Dow Chemical Building Consumers Power Company Michigan Division 212 West Michigan Avenue Midland, MI 48540 Jackson, MI 49201 Mr. P. Robert Brown, Jr.
-Clark, Klein & Beaumont 1600 First Federal Building 1001 Woodward Avenue Detroit, MI 48226 e
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