ML20127C863

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Forwards Updated Const Status Rept as of 830930.Info for Inclusion in NUREG-0030.Related Info Encl
ML20127C863
Person / Time
Site: 05000000, Shoreham
Issue date: 11/07/1983
From: James Smith
LONG ISLAND LIGHTING CO.
To:
NRC OFFICE OF RESOURCE MANAGEMENT (ORM)
Shared Package
ML082170543 List: ... further results
References
FOIA-84-367, RTR-NUREG-0030, RTR-NUREG-30 SNRC-977, NUDOCS 8504120375
Download: ML20127C863 (48)
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Text

{{#Wiki_filter:* LONG ISLAND LIGHTING COMPANY M SHOREHAM NUCLEAR POWER STATION P.O. BOX Sie, NORTH COUNTRY ROAD

  • WADING RIVER, N.Y.11792 Direct Dial Number November 7, 1983 SNRC-977 Chief, Management Information Branch Office of Management and Program Analyses U.S. Nuclear Regulatory Commission Washington, D.C.

20555 Construction Status Report, NUREG-0300 Shoreham Nuclear Power Station - Unit No. 1 Docket No. 50-322

Dear Sir:

In response to your letter dated October 30, 1981, we submit the attached data for the construction Status Report, NUREG-0300, for the third quarter, ending September 30, 1983. Very truly yours, U ,4 tl '& / J. L. Smith Manager, Special Projects Shoreham Nuclear Power Station VAB:mc Attachments cc: ,J. Higgins All Parties Listed on Attachment 1 0504120375 840606 PDR FOIA KILLEFE84-367 PDR

CONSTRUCTION STATUS REPORT PAGE NO: 2-11Q SHORZHAM NUCLEAR POWER PLANTS STATUS AS OF: 9/30/83 PLANT C 11 A R A C T E R I S T I C S: KEY P E R S O N N E L: DOCKET NO: 05000322 CORPORATE CONTACT: M. S. POLLOCK, VICE PRESIDENT CP NO. & DATE ISSUED: CPR-95 / 04-14-73 CP EXPIRATION DATE: 03-31-83 CORPORATE ADDRESS: 175 EAST OLD COUNTRY ROAD APPLICANT: LONG ISLAND LIGHTING COMPANY HICKSVILLE, NEW YORK 11801 PLANT LOCATION: BROOlGIAVEN, NY (LI) IE REGION: I CORPORATE PHONE NO: (516) 733-4013 AE: STONE & WEBSTER NSSS: GENERAL ELECTRIC CCNSTRUCTOR: STONE & WEBSTER NRC LPM: R. CARUSO REACTOR TYPE: BWR IE PROJECT INSPECTOR: DER (MWE) 849 IE RESIDENT INSPECTOR: C. PETRONE IUSPECTION S T A T U S: FUEL LOAD DATE CHANGES AS REPORTED BY U T I L I T Y: TIME PERIOD REPORT NEW REASON FOR CHANGE REPORT BEG DATE END DATE DATE SCHEDULE REPORTED BY UTILITY NUMBER OF INSP. OF INSP. 02-20-74 12-00-77

1. CHANGE IN AEC SEISMIC & PIPE BREAK 83-17 05/10/83 06/21/83 CRITERIA RESULTED IN 2 MONTHS ADD-83-18 05/31/83 06/3/83 ITIONAL EFFORT IN THE INSTALLATION 83-20 06/14/83 06/17/83 OF PRIMARY CONTNMT & PRV PEDESTAL.

83-21 06/22/83 07/27/83

2. DIFFICULTIES ENCOUNTERED DURING 83-23 07/25/83 07/29/83 CONSTRUCTION OF PRIMARY CONTNMT 83-25 07/28/83 0'/29/83 WALL & RPV PEDESTAL AND IMBEDMENT 83-26 08/9/83 08/11/83 FOR PIPE BREAK INSIDE CONTNMT.

11/10/75 12-00-78 LABOR STRIKES, UNAVAILABILITY OF MA-TERIAL, WEATHER & CONSTR. DIFFICULTIES HAVE RESULTED IN A 12 MONTH DELAY. 09-21-77 03-00-80

1. LATE DELIVERY OF PURCHASED MATERI-AL (PIPING & VALVES).
2. LOWER THAN EXPECTED LABOR PRODCVTY.
3. DESIGN CHANGES DUE TO REG. REQMTS.

01-10-79 06-00-80 MANPOWER CONSTRAINTS & DESIGN PROCURE-MENT PROBLEMS. LOCAL PUBLIC DOCUMENT R O O M: 02-00-80 11-00-80 NO REASON PROVIDED. 06-19-80 05-00-82 DELAY DUE TO COMPLETION OF SYSTEMS. 06-09-81 09-00-82 DELAY DUE TO COMPLETION OF SYSTEMS. SHOREHAM-WADING RIVER PUBLIC LIBRARY 09-30-82 02-00-83 DELAY IN SYSTEM COMPLETION DUE TO LATE ROUTE 25A MATERIAL DELIVERIES & FINAL PIPE STRS. SHOREHAM, NEW YORK 11786 RECONCILIATION REVIEW. 12-31-82 05-00-83 DELAY IN SYSTEM COMPLETION. 03-31-83 08-00-83 DELAY IN SYSTEM COMPLETION 09-30-83 05-00-84 DELAY DUE TO DIESEL GENERATOR CRANKSilAPP FAILURE

l CODSTRUCTION STATUS REPORT-PAGE NO: 2-111'. N U C L E A R. P O W E R-PLANTS SNORENAM STATUS AS OF: 9/30/83 CONSTRUCTION STATUS: APPLICANT'S CURRENT ESTIMATED FUEL LOADING DATE: 05 84 APPLICANT'S CONSTRUCTION COMPLETION ESTI-APPLICANT'S PREVIOUS ESTIMATED FUEL LOADING DATE: 08-00-83 MATE DEFINED IN.CP: EARLIEST - l APPLICAW'S ESTIMATED FUEL LOADING DATE AT CP ISSUANCE: 03-31-77 LATEST 00-83 l APPLICANT'S CURRENT ESTIMATED COletERCIAL OPERATION DATE: - '03-00-85 CURRENT ESTIMATED PERCENT CONSTRUCTION COMPLETE: 98.6% l COf9EENTS REGARDING CURRENT CONSTRUCTION STATUS: ESTIMATED ACTUAL ESTIMATED ACTUAL ESTIMATE START START COMPLETION COMPLETION .% COMPLETE MOBILIZE AND PREPARE SITE: 11-00-72 03-00-73 100 PLACE STRUCTURAL CONCRETE: 03-00-73 12-00-77 100 % INSTALL REACTOR PRESSURE VESSEL: 03-00-75. 12-00-75 100 % INSTALL LARGE BORE PROCESS PIPE: 05-00-75 10-00-79 100 % INSTALL LARGE BORE PIPE HANGERS, RESTRAINTS & SNUBBERS 07-00-75 10-31 99.9% INSTALL SMALL BORE PIPE: 05-00-75 09-00-82 100 INSTALL CABLE TRAY:~ 02-00-76 08-00-82 100 s INSTALL EXPOSED METAL CONDUIT: 02-00-76 10-31-83 99.9% INSTALL PONER, CONTROL, INSTRUMENTATION & SECURITY CABLE: 06-00-76 10-31-83 99.9% INSTALL ELECTRICAL TERMINATIONS: 06-00-76 10-31-83 99.9% CONDUCT REACTOR COLD HYDROSTATIC TEST: 10-00-79 10-00-79 10-00-79 100 % CONDUCT HOT FUNCTIONAL TEST: N/A N/A; N/A N/A N/A CONDUCT PREOP ACCEPTANCE TESTS NECESSARY FOR FUEL LOAD: 01-00,-80 02-06-83 95 % J

ATTACHMENT 1 Lawrence Brenner, Esq. Herbert H. Brown, Esq. Administrative Judge Lawrence Coe Lanpher, Esq. Atomic Safety and Licensing Karla J. Letsche, Esq. Board Panel Kirkpatrick, Lockhart, Hill U.S. Nuclear Regulatory Christopher & Phillips Commission 8th Floor Washington, D.C. 20555 1900 M. Street, N.W. Washington, D.C. 20036 Dr. Peter A. Morris Administrative Judge Mr. Marc W. Goldsmith Atomic Safety and Licensing Energy Research Group Board Panel 4001 Totten Pond Road U.S. Nuclear Regulatory Waltham, Massachusetts 02154 Commission Washington, D.C. 20555 MHB Technical Associates 1723 Hamilton Avenue Dr.-George A. Ferguson Suite K School of Engineering San Jose, California 95125 Howard University 2300 6th Street, N.W. Washington, D.C. 20059 Stephen B. Latham, Esq. Twomey, Latham & Shea 33 West Second Street Bernard M. Bordenick, Esq. P.O. Box 398 David A. Repka, Esq. Riverhead, New York 11901 U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Ralph Shapiro, Esq. Cammer and Shapiro, P.C. 9 East 40th Street Mr. James Dougherty New York, New York 10016 3045 Porter Street Washington, D.C. 20008 Matthew J. Kelly, Esq. State of New York Department of Public Service Three Empire State Plaza Albany, New York 12223

r 3 THE LONG ISLAND NEWSPAPER e SPECIAL REPRINT L j $;$"$$pr

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,wh., Y. erf'. /, ' -, y., ~ ~ cn. ' \\ m_ y ~Qs ?E t ... n.. ~ ,g ../- --4, ,J'., Letter From the: Editor ' Shoreham: What Went Wrong, a seven-part. _ concentrate on the economics ofnuclear power. ' series by Newsday energy writer Stuart'Dia-; He was already experienced in nuclear mat-mond, is a carefully documented. study of the 6 ters, having provided Newsday and the Wash-problems that have made Long Island's atomic. ington Post /Los Angeles Times News Service energy plant the most expensive in the nation.,. swith some of the finest reportage from Three ,. On a b, roader scale,'the' series imparts a clest :. Mile Island, a conclusion shared by oflic a s of i l .' understanding of the economic ills that have, LILCO and Brookhaven National Laboratory. crippled America's atomic, energy industry. .On his new assignment, Diamond traveled to .The editors of Newsday. feel that this series J other parts of the country, building en his is timely and important not only for the resi-knowledge of atomic ener'gy technology. He in-

k.. dents of Long Island, but for the. nation.as a-terviewed hundreds of nuclear, utility and fi-'

.whole Although;d.ebates over the safety of M nancial ' experts,!publiciand~ labor ofIicials,,. atomic plants have:long dominated the na

  • construction' workers and" supervisors,~ con-~

y iion's headlines,1 he' primary ' argument !for C sumer and environmental activists and LILCO t

atomic energy has,always been ita ' economic.1 officials. He also studied thousands of pages of.

_ ' advantage. Stuart Diamond's exhaustive se.J. reports, construction detail sheets, letters and \\' ries' reveals that this' advantage is rapidly di,,. other documents.' minishing. .6*"' 9 In the final months, Fred Tuccillo, an assis-The timeliness and importance of these arti- ' tant Long Island editor, helped shape the huge cles is reflected both in the mounting costs of mass of detail into a strongly-organized, clear-l Shoreham and the abandonment of atomic en-ly-written package. The result was this series. ergy plants already'under construction'else. For the first time, the people of Long Island !were given an' accurate, complete picturfor ~ where in the nation. J s Concerned over mounting costs,long delays - the Shoreham experience and how it relates to and reports of construction mismanagementi the rest of the industry,i ~ on the part of the long Island Lighting Co.. '- The editors of Newsday feel that this series, Newsday assigned. Diamond in June,1979, to - through its depth, accuracy, fairness, clarity, study in detail the construction project. While i and timeliness -is 'an important journalistic the subject of safety at Shoreham and other. ' contribution-to the Island,'the state and the , nuclear plants had'been adequately reported nation.. Anthony E. Insolla, .e over a,15 year-period, Diarnond was asked.to ,. f (. e \\ d~ g' i,. # 6 . ~.,., .f .e

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~ 4 / INDEXp&LWtW27C9 3 S k INTRODUCTION "g, 3ghl@N@ Ifow a Nuclear "[l TR v.A 4 ivi Plant Grew To Become F{G? ' J "~ ~ C The Nation's Costliest sn .;R. b.'..,,kDh2W. PART ONE First Steps ! $ i!:l E. N. F' 6 .m ~ Were Bold, The top a ine p,4 mary co,un,n."t C,~ y" ~ ,,,,,,,, _ ' But Assumptions t be put n the reactor abr fuehng ~' Starting the buieing tramework Were False an ab ~M5257.Md.,5* PART TWO The Project ,,^%' iO g Managers: W % h1 Where b;f:q o b d " They Failed 14n c s ... s u p D f PART THREE f ,, 7 u LILCO hv ~ d. Spent More,- . h6 4 Got Less ? From Workers 20. M PART FOUR geoessa,e see W leeester > See i.ecaer . orwns on a turtsne assemtsy s,.. The Regulators' one o' the many wouing htm j w s Ever Changing " v '" ' Rules.

26. MOMC 4 Njy.Q PART FIVE LILCO Sank

-rm b g,.y5 I j [I Millions ~ .[9. f,;j,. i,".7,, t'b i Into Risky eg k[g i l Mining Deal sin ]

A "O j' PART SIX

,{],(g gl3 ggg ggj s i,t ttty '{, l%.N f T*(7 A Financial-9 88 q 9 Qw Burden F 'af)g@r For LILCO -"~" "" t g tj, Q-j And LI asa ~,w - 9.,,. r g (u.6. y.t-4 g g ' i PAar sEvEN g ,., 4 g,,) @@ / With Billions -'. N.cP. 5 1 g

Invested, (pyHi 9

Alternatives ,4'i Are Few 4o. 4l .f t '- 4, EDITORIAL ~ Blunting The Impact j Of Shoreham's ,.. _ g Lawng into the reactor core Cost Overruns aan , g sn!"."dm J"* ' - J e i ~ IN THIS SERIES, Newsday erwironmental and energy reporter Stuart Damond reports how a convergence of orivironmental l opposition, poor management, abusive prachces by labor and federal regulatory delay exacted a heavy price at the Long Island e., 3' Ughting Cola Shoreham Nuclear Power Station. The series was originally putWished Nov.15-22,1981, and is reprinted tr/ Newsday as a public service.

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HE Shoreham Nuclear Power Station g y n ~ t2.

has~become the nation's!most expensive atomic power plant."

T :It is a living catalog of all the ills that have beset the nuclear industry since the 1 days when the atom was viewed as the ultimate' answer to America's energy needs. i tliose ills.; power projects'throughout the country have all shared some measure of. s. _. Nuclear But 'only at Shoreham'has the convergence of environmental opposi- % tion,. poor, management, abusive practices by. labor and federal. regulatory delay .. s < m. + n :..., n : - -.~.. -.. ~. m. m ~ e ~ W anacted so heavy a price. Andrew ids, man 7 82.49 billion construction cost bommes part of th*. Queens are already and will continue to

  • ager of nuclear projecta for the ral Energyy utility's rate base, the average yearly electrie bul
7. wo re a utill emid ice President Information Administration, said, "If someone e on long Island will rise by 16 per cont-&om Freulcher. "

anything we dola going to be . were to ask me cold, what plant epitomised the, 8768 to $89L ' >,,, : 4,,

  • paid by the consumer sooner or later?

But it could wares. /- light of nuclear technology,Iwould say-.6hore d., A alower eli Blau says, "Ibia company la spending itself ..'. It was the prototype through all the

  • in the price of oil, another in. ' into oblivion, and then threatening us that it will y

regulatory, economic, eachnical and social hand.y. crease in Shoreham's cost, a less than optimum .* - wringing that ensued la the 1970a? ' * **.* Performance level b the lant's reactor could eloos down b # unless we give it higher a - Shoreham's cost per kilowatt of powee--4he g raise the average b te pt. per year.,And all *,,,g,y i . From the beginning, Newsda found, nearly J ~ U '. nuclear industry's key measure of reactor easte 4 are possibluties.o it a

  • everything that could go wrong d.

la now 82,442. According to a recent inflation.L) ' 12If0 officials n,ow say that the plant la 90 e A year after Shoreham was announced in e; adjusted study by Reynolds' agency,that is more [- cent complete and that it will begin operating 1966, nuclear manufacturero discontinued the at-c 'than other commercial atomic plant ever son.. March,1988. But there are indications that the, tractively low

  • turn-key
  • prices they had offered.

t k in the United States - --*q date may be postponed again-and that Shoreham became one of the flret atomic plante. . That cost has had a staggering lanpact. It has final cost may rise to as much as 83 billion-la the United States without a guaranteed pries. h*. transformed LIIEO hm a highly regarded case. L;, Work reports obtained b Neweday show . Beibre{c~o g constructici workforce at Shorehama; ~ 't= lta projected costa sound. pany into one of the most Acaneially depresse(% to be months behl IJIEUs current j - utilities la the United States. And in the praesse,i ' .', of it has eartously eroded the initial reeman for, And inflation, which has historically com.". has become the most expensive and least produ tive in aumle plant history, collecting almost building an atomie plant en lang Islaaet - @ d 3 all Shoreham's lems,swelle the pro- $800 million in wages and benefits but doing, a Bhoreham was conceived as a source of cheap 'e cost by one halfint H= dollare for each day state audit said, an average 1.8 houre of actuali power. It was supposed to provide relief to long ltoi delaF-work

7. hour day. Worker embotage has ex.

falandare aqueemed by the rising price of foreign 1" Since 1970, the State Publie Service Commle-e.vutime costa. ,., eg. - - fu elon has granted IJ1EO la rate hiken, a total e In the 16-year history of Bhoreham, federal "Ihere were times in the course of the Shor,< $621.2 million increase in money the stuity can regulators went ikom one extreme to the other-- , ham project that I thought there would actuallyl',eeUect from its customere from doing little to correct potential nuclear plant be a rate reduction when Shoreham went into aer.,, ' Only $70 milhon wee to forShoreham.h. problems to unleashing a veritable blissard of vies,* LIICO,Proeident WUbed O, Uhl. told : not wubr LIIE&aothwopwetingcosta,Ibethe new requirementa. j , ht espectation has vaalahad. A, w, v.' L atenst on what it borrows and for the dividende " t 9 Aa Shoreham's cost ovwruns mounted, h, Newsday this month. - 'fs ,, it Pays its stockholdwo. s IJ1EO d eted Ita cash reserves trying to pay for 8 The plant's carrying costa are now so high,e But the Shonham has been devouring, them. It en had to borrow at near remrd inter- [ i

  • 4

' thatitmaybeedoendeermorebeforeL11EOand.'.them rmnues as we -'t t- ,g,,t, g, c,w its construction budget and pay its customere see any savinge et all While LIICO Millioca of dollare in operating cash have,dividende, in offeet floating new loans to inske g t of!Leiale stulinaintain that ever a 80$ year pertog, been diverted to the nuclear prgeet in a tnove, the payments on old ones. . Shoreham will save money ever pu, they cri=eada a that Joel Blau, conneel for the State Public Serv.. e The 1973 74 Arab eil emberp and a na-4

  • ' that the savings.will not begin until 19682-and" vise Comrnission, termed *outragwas. #

" tionwide recesalon sharply curtailed the Inns la-could ensu, be delayed into the early 1990s. *. Itundreds of millions ofdellare have been bor. ' land wer needs Shoreham had been designed to 8 .- Meanwhile,' electric ratap on lang Island wul rowed fbe Shoreham through ever mon expensive < es . A year later.1J1EO began a quiet-and g, bond lasues, ewelling LILEO's debt untu, in the so far fruitises-effort to sell part of the plant's . u.: go up, not down..

  • +...

..Ja+dditeen,121E0 eskialanow e,as[a6 turwwds ofJte financial analyet, Ra f ut.c. power genereaed b < Shorebem,' origlaally 4 ?We pay laterest en the interess-{mond Fornr. ' pting espacity. , As a result of Shoreham,11140 has fallen F 1988. ' d * - *# 1973 'willmot be, t ' '1%e amount of tJ1EOstockhaaboon tr'tpled to pianapd ts und.b ta frorn flacal health into what Standard & Poor's ".,,. O, : ? raise meer for theproject,a wuresof action that. esua *eevere financial strees.' Bondtag compan. I, e ei These the findiase 'of a* required more money for dividende to estract new lee list the utdat near the bottom in quahty of

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' sesskholderd but,wbich also dentued the stoeh< 'estmange and flow.8mith Barney put illEO y .. + et + D6aB theyf==W UIEO wAsew!* Wh==ang ahm lugeer utuity wrapania; Ba. ,g ' a, p ' h y,s* *m n,*sa Bharshaselp, Mg 'l,N,* * *, :,%,"/,2$ _E, (sY Y t f.Q '*,,. ?t*.tQ D ' W t;*;p-it( % auhlk and, v..,,;,y J' . -Contineed en Next Page

  • 7

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HoW anuclear 2Pladt! Grew-tb v;, ' ,, cials of the firm "do not have any quahns about *Now these plants are one foot fhna each other,and [ both are operating,'said W.A. Widner, a Georgia ,'.~being able to manage construction."~ To LIIf0,8 tone & Webster nported that the Power C % project's troubles stemmed larply from federally. system... It just doeent make any sense." o& red design changes. * " ~ e w * 'Y % Denton, however, defends the erstem-and the . Federal naulatore, for instance, approved the - huge costa. "We want the planta tobe safe," he told i .. design of a key safety system at Shoreham, over -Newsday. * ' the objections of their own safety expert *Iben, ' "If that costs a bell of a lot of money,it's some- .i aAer mamelve equipment was installed, they re. body etee's probipm.' versed themselves, forcing LIIEO to tear it out. ' But the single largest elementla the Shoreham ' l 'Ihs preliminary analysis of the change, the ensi-pricetag has been the cost of labor: a! meet $800 neering sad eettal repl-at cost about $100 million in wages and benefits, more than the entire + average cost of any nuclear reactor operating in million. ' 'Ihere were hundreds of smaller chansee. the United States. .n gf*.e.

  • F 'Ibe federalregulatorswereconstantly revising ' Yet a state audit found that union construction c

1 - Continued from Proceding Page ' *olomon Bros. rates LIICO 96th out of 100?We're ' and reversing reactor guidelinas, making n to counsel U.S. utilities on the revisions. "We as-ectwork per day. Much of the remainder was t hving hand te mouth," Freilicher said. That will change quick!, LIIf0 ofEcfals he 7. sumed mey =dd keep up wnh a mW tart waiung, etarung late, quitting ear owatt plant sends its i.get," NRC regulatory chief Harold Denton said, Often planta under construction, like Shore. e a y y Q' 3 lieve, when the 809,000 ' first surge of nuclear-generated power to the h 1 . bomes and business oflong Island. At that point,t am, have undagene extensin nvisions to com-3 y. 2 WO Wee I ply wnh new standards while plants already oper-lans call for ratepayers to begin absorb- ' LIILO's T8no,eham e massive.o.st,ecuan nei. auns w~a-,* a sown costp [ ed in, an. LIlf0 omcials say, however, that ever its 30. dk ',,***f'[g 854% RISE 800 % i er life Shoreham will aswe tong Islandere $65 thousannta of pipe supports in the second unit were ty wdend u be twice as,large as those in Unit 1. , 322 su l l with

1. 'Ita estin te i e

assumption that the price of a single barrelefoild. - b.. d" 7gg l l ~,., now 826.50 to $33--wsil be more than 8600 in2013. 3. g gg h I L, ' LIIf0 also maintains that the $2-billion cost W Ofm M nMq , y;A t, overrupa it encountered in building the plant were ; b 71 the result of forces beyond its control J D too largetd President Uh1 told Newsday: 'I am ces-r n, u , LIlf y vinced that any fault-finding with roepect to r N MS , pd u 7 LitrO is going to be very minim =f * ' ' - <= u y But at least some problems of the Shoreham [-l F15 f* project, aceerding to Newsday's study, grew thun ,4 gm g, [ , decisions and actions inescapably the province of. i l s fe. l 12140 maannement 'Ihere were early errors on.t

  • gm weng reactor cost,3esign and capacity, sonn of wh6ch i a l

i +

  • ?

. unintentionally aided the efforts of nuclear oppo 4 '~ i nonta to delay the start of construction. ? g.j N j A ^ Lilf0 decided its own personnel were too ines.,

bg 5

perienced to manage Shoreham's construction but, l w J- . assigned the same latowatchoverthemanage e 300 geog mense I ,~ ment firm it h and eventually replaced. '+ .l j Shoreham construction contracts were openf # - [,, sit h +. 142% RISE hI l - ended " cost plus" agreements that provided an in. wait'Ft 1'S e kr -i 's centive for slower, more expensive work. * ' / A*., e.. a commun mect aeEI Ofd e +* i $NI e$ f Featherbedding and other costly labor p setices s i 4 were emnettoned and management waited four, W ** l b d d years to chart worker productivity." Lilf0 also suff'ered ihnn its own early mis '. too - -gr,e_- reading of regulatory changes; yet it easigned no b ?*' M<r; v I. ' one to monitor such changes thIl time uns611979,.

  • - 330 M f

{ $ 8 t a [ els years after full construction began.y **" Joseph Novarro, a fortr.or Shoreham project. p l* 7~-g-^w '8 "0- ~ manager who is now eastatant to LIIEO's board ; ' ' 'a66 6 chairman,' acknowledged that the utility's manag.; -t 6 66 i 6 ,. are were'never,in the beginnlag, prepared for it-But Shorpham i notjest the product of deci ' , #

  • 18%4.**15 78 18 - 18 1818 El i

l D , sione la a W1dy.'it Q- :-- tre, y ' / >, g (},4 3, q wide problogget,lon a(Es[learj%'- M ". ing'Ms.. e 3 j shore the nopensbility;. % ; l* % - t. - la LIICO's ener,the breideme seemed to' feed,

  • , ff each other, to the entent that Nuclear Hagula-Wy,

a i r. e o tory Commission officials and othere consistently. M Q M,{ . % d.w eingle out Shoreham se the nation's worst example. of protracted delay and runaway costs on a nuclear, [,, s g p{e j -e .. q g W tw Mq' project. NRC commiseloner John Ahearne de-p W$.,h H .e9, J . scribed Shoreham se "a horror story.* l h a. /^. 77 I. . Environmentalista acknowledge, without re-i y j gret, that they turned the hearings on Shoreham's - ) if construction permit into 's multi-media confronta-L'; t. l tion" to delay the start of the project and spur a. {7 ,4' i ' nationwide anti nuclear movement. ( Under Stone & Webster the laternationally., M'# $Q-respected engineering firm IJ140 hired to man- [ d[.Nf age Shoreham's construction,the cost e(the project doubled, ihnn 8506 million to 8L12 billion la sour t .h '/f W ~~ 'p years. \\[,Q ? ~< i Arthur B. Czarnomski, Shoreham project man. /' I bg ager for the pipios contractor Courter & Co. of Brooklyn, told Neweday how late deliveries and .W , d '> ' poor management of supplies forced tlw installa-SMC d "'j d ^ tion of pipe before the connecting valves, pumpe yN i '. - and hangers were in place. When the missing com-dQ l4 i*

  • ponents arrived, he said,"We would install them, d

i-i ','a - and find out the pipe was in the wrong line. So we'd i take out the pipe andpt it in again.' , d. f, Stone & Weteter ometals have refbasd to die ' e e.a., o.m ana e e.m ri so.am s== u=aar ,- eues Shoreham's problema la detail Company . i5 vice.r,esid,nt Joh. aien wonid y only ihat ofn.. , The insid. et in. r ciar buiksna ei.ihe shor.nem projer: m app.ar.d i ins .....y

BecomE the Xatiod'sLCostliest i from one part of the site to another, the audit said.. al staff of a major public utility." llenry added, r day detailed a pattern of worker aabotage aimed at,the situation and acted as a rubber stamp. Me,h,Ve,*MOst Workers and supervisors interviewed by News-Tm, the PuNie Smice Commien laked at ry,=*ag,g:ma ane uial",da.PE",'e'"2's"iTJs'n": , Expensive Plants nuclear project has amounted to little snore than Gashes called *are strikes %netal scars made an occasional glance. Tatsf assis sateW sf asher ht afn ir ast power by a wilder's torch-were descnbed by almost ev-Not until nud-1980 did it obtain monthly work 8 Wade 8Fshet casi per Messg is W doests ery worker interviewed as an example of dehber-reporta from Shoreham. In 1970, when Shoreham - (ta attempts to create work. One repair order awas to cost $261 million, the PSC abolished the Shorth' H' 8e eer ~ vizwed by Newsday documented 16 are strikes program under which it had postad 6 eld inspectors close together on a single length of pipe; a quahty control inspector said that many mistakse could, to monitor the construction of power planta, PPSS' -3. Wash' ses7s "Ihe PSC esta rates; we can't run the com-not have been made accidently. . pany," saya Vincent Macri, a PSC Saancial expert-h % NY twa Another such practice was described as *sched. ' who has analysed ULCO for years. "Ihat's up to uling collusion." Fifteen itama might be needed for -the board of directors.* - ,g a task, but the bull gang responsible for bringing But the stata audit found that Ulf0 directors River Besid. La. t185 'j them would del berately omit one or two essential 1 didn't get their arst full report on Shoreham's pro,,

  • g items, such as a pair of collars that $1 arount a, grees until four years aRer construction began. "

K'i':RC"M- = i pump. *So the assembly team sita around for a day 5 "Ihe system docen't work in the sense that this and waita,* one worter said."The bull sang knowe, project probably ended up costing a great deal M, 1'0,00

  • 1 M, 2 M, 2'

' ~ the two collars are needed to startit They had laid' more than it could have cost under some nort of a out c11 the yteces in the shop,*, : N ^% difrarent system," Uhl said. But he maintained Rant State, ' Operstmg Sue Cost Two steamatters, each earning up to $14.82 an, that, with the emptaon of enviroamentahats ~ Dam m hans in beons g 8 8y prgsc obod hour, would routinely be employed for a one man Q "g" SherWeen,' , Much , 80S,000 $2.49 i w;lding job, as desenbed in this enchange b WS b long, a knman supenWng 200 ww rs. b m ui n in est or a dehy lieu Yort 1983 .... It wasjust a lot of people...doing what they

wpr3313,

~1984-3,600,000 $11.5 Newsday: What does the second guy do when,' thought was their gg jggg the Erst is grinding? Ulf0 officials we noted that many of Shore-long: Nothing. -l ham's lems are common to nuclear projecta pene Mis 2, December 1,080,000 $31 Newsday: han why have a two man tradop. the nation and that other dtomic less Vert 1986 g Long: It's a way to employ more workara. i:fante han expwtenood delays and cost omruna. fWeer Beed, S,eptember 935,000 $2.4 one example, the controversial Washington jgg4 g But many workers blamed poor management Public Poww8u ySystem, building Annuclear. by Ulf0 and Stone & Webster "21ere is no prob. i planta in the P Northwest,may have to aban-Hope Creek 1, December 1,067,000 $3.1. 'lem with making people work here,"said steamnt

  • don two because of cost everruns and other prob.

Itew Jersey 1986 ter Bob in. *Getting the work to us is the lems. But the cost of the other three WPPSS plante ,' problem. De engineering company is at fault."- 1is less per kilowatt than that of Shoreham. U fbt supply for Shoreham has so far been a debacle,i ^ In Ohio, three utilities are building a nuclear Even Ulf0's attempt to secure a guaranteed Ths util ty poured $100 million into Bokum Re.. plant almost identical to Ulf0's plant at Shore ;' ham: licen. sed at about the same time buffeted by ""*r C" '*** **r i sourcee Corp., e uramum company that has so far' the name changing regulations and employing i produced only a Gooded mine, a mothballed mill and* highly. paid union labw. De east;.lasa Ahan one- ? er than by the utility's customere. But even some of a trail oflegal proceedings. With interest, UlfO's : half that of Shoreham.

  • ekno edge tha f y,

loessa could nach $100 million. ';..? In Georgia, the liste i plant, ikwnsad 34 But abile Ulf0 was losing maner en the ven." monther behre thovehese, has been operating fbr [ p , < ture, the company's owner, Rachard hokum, was, more than two* years It is se similar in design to. could be Ulf0's bankruptcy and an even aw using $1.6 milhon of the utshty's money to explore Shoreham that it le listed with nearly identical,,g,,,,g,g,Powe, y,,gexpnas, ur nium properties in which Ulf0 had no claim, A powef statistics in the long taland giant's Anal -

  • lt's very 93r people to,' Screw Ulf0.'

$2.7 milhon to provide himself and political friend 3*enfety nport. The cost: ens 4fth that or Shoreham. But merewing O is screwing ng Island.'said with company stock and several hundred thousand In fact, since Ulf0 replaced Stone & Webster," Richard Kessel, a consumer eetivist and frequent doll:re to invest in bonda and other encunties i as construction manager,Shoreham'a cost has con- - Ulf0 erttic. "We're going to have to face some When a federal judge found him guilty of bitLg 4tinued to expand The schedule is slipping twice as -facta, ne first one le that we're all in serious fl. formcr stockholders out of $500,000, Bokwn paid fast and the expense is rising twies as fas6-about > nandal trouble-Ulf0,its ratepayers, the whole $1.36 milhon in damagee from his treasury,nearly y$27 milhon a month.. service terrttory... No matter how you oook it, =11 of which was advanced by Ulf0.,, 9. De Public Service Comminaion is investigatf it's going to be wellaine{ Atsve approved bstep, the Publie Service Commission.: ing to determine what if any proportion of Shore-Bokum investment, drawing sharp ham's cost can be directly attributed to - 3 *1'his whole aituation is like being in Vietnam,, l 1 enticism in a Suffolk County grand jury report. J nu--gement And consumer groupe and nucle.. said Cha,rles Schelke, utilities analyst for Smith District Attorney Patrick llenry said the nport - ar opponents are arguing that that proportion Barney. Once you're there, the problem ia. how de " points out an alarming ineptness of the managerin abould be paid by U140 and its stockholders raths. you get outT* j 4. ~, N n s '. ~ ~ ; i g m' *)? ' ' ' ~ .s* Q The: Genesis'of the Shoreham Series

a. -

- ' Stuart Diamond, who joined Newsday in 1973, nors, consumer and environmental activista and W has covered b environment and energy beat since top Ulf0 officials. 1977, lie was part of a Newsday reportmg team In recent montha,'as the study neared comple-10C $CluGL C00!e whose investigation of the 1979 gas eriais won the tion, Fred Tuccillo, amnistant SufMk editor, began h4 0880SM George i lk Memorial Award for national report-~ working closely with Diamond to help shape the ing and the Page One. 7. final product. De result le this series of reports. 93 M k* , Award of the Newspaper T', The article on Pages 6 7 la a summary of the Guild of New York., 8 seria. The Gret part appears today, beginning on he In 1979, Diamond was 3g the nrstjournalist to nport ! page 25. It traces the project fkom its announce-ment in 1965 to the end of the most hotly contested f . that human error was the i nuclear licensing hearing in the nation's history, F major cause of the nuclear - u, eight years later. P ant mishap at Three Mile M

  • Re Mkwin reprts will k l

7g h , laland and his covers of ) Tile PRO CI'. MANAGERS: Esaminee the it. 3 ~ 2 . E'b Scienceie*,otii.1 '=i = o==dsiaa * **6'ria aa "*== t.

  1. y' t

s""'hgJ':f C"atf. S'"*" *'" '* '"EE O *0"a'i*i -t-d* 9 ta hi and the Community Service Award of the abuses that have pierued the Shoreham project. N i l New York State Pubhabers Asanciation. Ile has. Tile REGUIATORS: Dencribes the effect that M ug I also written two books on energy and participated ever< hanging federal regulations have had on I in many forums on energy and the environment. Shoreham's cost and schedule. g 48 4 in June,1979, Diamond began an intensive THE FUEL: Emplores Ulf0's ill. fated urani. m I study of the lang Island IJghtang Cole Shoreham um mm:ng venture in New Mexico. ? 'O '87 'M '11 '13 '75 '77 l '81 nuclear project, devotag virtually all of his report. Tile PRICE: Detaila U140's detariorating S. [ ing and wnting to that subject. lite reporting for nancial condition as a result of Shoreham. 3 ' this serin included interviews with hundreda of - TiiE FUITRE: Outlines the options facing l e e, r i 9 e &s '"'** **"', nuclear, utihty and Anancial esperta, pubhe and Ulf0, regulators and ratepayers in deshng with y l

  • 4 p s.e.e p labor off!cials/eanstruction workers,and supervi., s Shoreham's enormous esponse..

.a. 2 + ,,n,, 1 a r '( Wf. FWe%.e+43 ,M J-ma 8, e .p.gu,g, .,,ggu

,t ,1, 4 .) J,. i p. .;,, f y, c a v, "N k M d *) k

  • J C 4 /M 7

,a f J _? ,. ~. ~. g - - - s,.... y. 1p-k , kW'% ) ,[ ~,,,.,, ,p a

  1. ~

w.. / 4 m p ~,. NWS, .u s + u. 4, w p,, i 4 ts e i gn. .7 'I d g =/ ) W iu- '**Wf W%g e,s pp=.,%enee u 4* 4 Ui s e,4 4 * **"WW ( Q*{ }4 m.7p q ". '. PART ONE;r &c,L y ww o . wp 4 :- .First!Stepn,s1,W~ereLBold," 5 . ButMssumptionseFalse [ *p l'" begun. Each of those planta-with pnerating ca-By Stuart Diamond fJ "' . = = = - - - - - = 4' ,.wA.,, @ M['f'E'I"]w, pacities close to that of Shoreham'64ad complet. s v ed applications by the summer of 1968,18 months Neestar Environnwot Wrner IIE tang taland IJghting Co. fnuclear lant at -.k =< '. - befm Bhmham and a year befm the M envi- 'Dd ronmental monment hit full stride, Shoreham was born in an era o relebration-e time when scientiate were

  • 'c h Arkanana plant got its construction permit predicting atomic airplanea, basement reactors

% In December,1968, and started operating in May, and electricity "too cheap to meter.", ' " .,9 1974, at a cost of $245 million. . But the celebration was to prove premature. ", h Hatch plant got a construction permit in Within a year after Ulf0 unwiled its plane prices they had guaranteed for the earliest com- .pQ, i,0g December,1969, and started operating in October, Ibr Shoreham in 1965, nuclear manufacturere m. 1974, at a cost of $600 million. would discontinue the inflation-proof" turn-key" ne blalne plant got a construction permit in i - 4 October,1968, and started operating in December, mercial reactors. s 3 1972, at a cost of $238 million, Shoreham would be among the Bret atomie ...-ow.4.aJ cu e4 was.m44# Shoreham didn't get a construction permit un-e plants in the nation without guaranteed prices. til 1973 and will cost at least $2.49 billion-at And Ulf0 would bommeoneef the Bret utaliuse > ', e=** "wev== ma*==8

  • least $2 billion more than each of the other plants.

in the nation-but far Dom the only one-to see the cost ofits stonde plant aoar. la Shoreham, Shoreham, placing the Gret order for General Elec-In an laterview last fall, Ulf0 President Uhl the timing of Shore-power " tric's Mark II-e choice that woubi later cause conceded that,in y,t Uhl, who was U1, has become the most. expensive * ** + n costly delays.h federalometaloverseeing design ham was " unfortunate. Bu plant in the country. take many utdities, Ulfo stepped into the chance in the Mark 11 amid that its faulty design CO's plannine manager in the late 1960s, added, "It's hard to place enseelf back in those days and nuclear age with no background in atomie energy.* alone would han pnnated the Shonham plant But its entry was far kom timid. In h spirit of hem operating unt i1981.evenifconstructionhad ' know the problems we would have faced? ' in a second interview Nov. 6, Uhl said, *Some-what liarvard University economist Irwin Dupp,- been completed in 1976. who has studied the nuclear industry estensinly 9 Aftetune ly high demand for electrio. times you have a decielan and there is this way to home its application for a con-p and there's this way to go,.. and both deci " would later label"the great bandwagon market,g. ity la 1968, struction permit at Shoreham te plan an increase. a6ans would be reasonable. But one turna out See UILO announced plane br thne reactose before it in the reactor eles, hem 640,000 to 820,000 kilo g yearslater to hanimen much better than the oth

  • had applied for a construction permit for the first.

All thne Ulf0 nectors were su to be wette. Faced with similar growth in power needs,, er one. ht's not im@. Hat's unfortunate. completed by the mid 1970s, at a' oest of other utilities simply built two identical reactore, Rat's circumstance. cutting costs and minimising regulatory delay.. Ulf0 ertile Irving Ilke, the attorney for the less than $350 million. Only one--Shoreham-ever reached the con - 0 Before completing its application br Shore, Weyd Harbor Study Oroup, was harsher: "nere struction stap. It is now 10 years behind schedule ham, Ulf0 announced it would build a second / was a nuclear bandwapa and Ulf0 goton itlike and still unfinished. And its curnnt projected cost. nuclear reactor at Word Harbor, a quiet, upper-enryone else? is 82.49 billion-more than sena times what cleas community thst auowe ne commerce.h an- % bandwapa had gathered speed for 20 Ulf0 espected all thne plants to wet. nouncement prompted formation of the Uoyd years by the time UIf0 hopped en in 1966. It wee liarvard's Bupp, la an independent study of nu-Harbor 8tudy Oroup, whleh became the most per-built and pushed forward by scientists and pt elear costa, said snat many utilides were victims of sistant opponent of Ulf0's nuclear power pro-ment omcials. Dere ese an saprnees to dim the thesamesyndrome:utilitieswould6retumeuncon-gram..LILCO offletale said the company barrifying Image of the atomie mushroom cloud + Grmed data ham reactor manufactuars and make underestimated the vigor ofits opposition..*Maybe ont Hiroshima. N theme was struck Aret in De-r a cost projection; the Atomic Energy Commission we won nain," chief counsel Edward M. Barrett cember,1946, when atomic bomb builder J. Robert 1 would then quote the utihty's cost projection; and said. Oppenheimer told a national radio audience that the utility would finally quote the commission's Ulf0 took See yearW 1966 te 1970-to ' nuclear nesion would soon produos clean, cheap l quote of the utility's projecuan to an autherttative move kom reactor announcement to completed and perpetual electrie puwer. pnenment Ogure, construction permit a lication br Shorehara. In On Dec. 20,1961 the peaceM stem was born. "De result," Bupp sold,"was a sirrular flow of.the interim, en era obholehearted nuclear sup-In a mmote desert lahtory at the Id j E 5 mutually reinforring assertions, self congratula. port gave way to the ekepuctarn ef the environmen-al Reactor Testing station, scientists slowty re - tory claims and adwrtionments that purported to tal age. A national ecology movement, which moved the control roda of a 304 kilowatt reactor, be analyses? What was giver, he said, were cost prminated with the publication of Rachel Car-and ibur smalllight bulbe glowed with current pro-In 1962, had blossomed. duced by the chain reaction. espectations. What was misang, he anid, wm re son's " Silent Spring *U.S. enetronmentalists were h news was greete.d with joy, and engineers conie of actual cost erperience.

  • , la early 1970, "Ihe big problem we have with Shonham la planning the Aret P.arth Dey-4be April of that began designing their first commercial plant at that we eeumated it too low," Ulf0 Presidient year-and preening compliance with the new Na-Shippingport, Pa.1 the Aret equipment for.that Wilfred O. Uhl said,"Not that it's going to east toe tional Environmental Policy Act.h hearings on plant was ordered in July,1961 And on Dec. 7 of g

much when it's finfahed? Shoreham's appliestion for licensing would be the that year, Proeident Dwight D. Elaenhower made s [l Por Ulfo, the original cost projections began Bret started aRer NEPA, which ordered detailed ble historie " Atoms for Peace" speech to the United I to unravel during the Shoreham project's eartteet environmental impact statementa for major con-Nations Oeneral Assembly, h peaceM stam, he. a days,in the late g0s as the utility took four me-struction projects. The environmental act would proclaimed, would "best sworde inte plowsh g d In early 1964, b Atomic Energy Commiseloni j jar steps that, inTetrospect, have cost it dearly: l have a marked efect on the length of the delibere-was born. later that year, lawie 1. Strause, c f e IJke many utillues, Ulf0 based Shore-taene and on Shoreham's design. I ham's cost projections en those of a nuclear reactor Other utilities sidestepped new regulations and inission chairman, esid that electricity fiorn nucle-i j that Oeneral Electrie was building in Oyster opposition by quickly niing their license applica-er power would be "too cheap to meter? Within ei . Creek. NJ. It was undeterred by warninge Bom bone with esisting designs, and starting construe-few decades, genrnment and todustry esperte pran prorainent esperta that Se economies of that land-tion. Once they had a permit, they were esempt dicted, the atom would provide ahneet all of th t mark project would prove fealty, that Oyster han numerous new requirunente and regulatory nation's electricity. In 1968,actenti government emetals and le. Creek nas been sharply 1 ' r.J br competi-proceedingeL tive reasons and that actuat ronster costa would but, in 1967, the esmo year that Ulf0 erdered Ita dustrialiste pred atomle powered airplanees gl much higher. Shoreham reacter,the Arkansen 1 plant,Ooorgia's ("emaet to coast la two houro7 and atomie furnaeen . g ** .e lllfo< sheen en natrist - W ame JinsM ylopt pp[tp.e.M. a.in.e..Yan.ke.e..p,as,t,we.re...,.......,,,,,,_- Continued on Nest Pagn

I S O two coal unita et Glenwood 1 tnding, one at F;r kilowatt. ha, the ple.nt,instead of being 33 par

  1. ; Rockassy and all four t.t Port Jeffer:nn. Its first eent chesper then coal, was 16 to to per esnt more f

new sil unit Barrett 2, opened in 1963r Ulf0 i

designed oil unite for Northport to meet surgmg ~ costly. O E. claimed it had made a bona nde com-mercial ofrering-It said the higher costs were due to

, electricity une in the late'1960s. * '" - early optimism that problema, such aslabor stnkca Yet MIro and other utilities closely watched - and the need for design ^=rures,would not develop. nuclear economica. Various experta predicted that - A decade later, howerw, a study by the U.S. s as the technology advanced, atomic power would Nuclear Hegulatory Commissaan said the Oyster become increasingly cheaper. In 1958, a study pub-c ,lished in Science magasine by a Columbia Univer.I Creek plant-ehich federal regulatore had sp- ? , eity'utibty expert predicted that by 1980, nuclear. proved and on which Ulf0 relied-was poorly de-signed, " built at minimum cost," and that its power plant costs would drop by 90 per cent in real

  • radioactive wasta and nre protection an inad-

,% j dollaro-to $50 per kilowatt-4ut that coal coste. equate? Dale Bndenbaugh, a O E. management ,~ q y, e.g would triple, to $450 per kilowatt ' nuclear engineer turned nuclear critic, said,"there J ,.g

  • seemed con 6rmed: Costa wwe dropping h Dre*

As more reactors wm built, such theories le no question that the Oyster Creek reactor and The Bold Decisions. d nitowatt-athirdofShin '2"* a*ha i"~ aoo br -*e-others around that ume were greatly underpriced" r ki ingport.s pnce. The l Uhl said,"We had no reason to believe that 88% Ro** P ant cost 8 ' pw kilowatt in 1960, in apartment buildings within 10 ean. America's recese heet.. In *.J62, both the 65,00Milowatt liumboldt Bay in those planta weren't fairly priced and that the industries were to use reactere dr[by the atom Enntually, trains would be powere rahfornia and the 63,00Milowatt Big Rock Point manufacturer wasn't Ally recovering his costa. Now it tuM out that he dMn't k most cases and homeowners could have reactor boiler unite". plant in blichigan cost $386 per kilowatt. Con. ht wu ann Mact kmledge." in their basements. It was even eYdynamiteto enareaofhighlaborrates, cost $480perkilowatt, Edison s Indtan Point I plant, nnfa gested that atomic bombe could be used instead o Imbued with the optimism of the nuclear og" planning Shoreham, a variety of sources warned blast awa miles of terrain and create a new canal through entral Amenca. and aware of mal e rising environmental problema that Oyster Creek should not be the standard-and Such visions stemmed fhnu knowledge of the

  • and oire rising import prices-utilities waited for that nuclear prices would be a lot higher and more uncerth than uuhtin M atom's estraordnary power. A 1. inch cube of ure. y one ancMe sign that nuclear poww was com*

As early as 1963, Philip Sporn, president of nium has the bm kel pellet the eine of a jellyheenwer of 300,000 gallona of gasoline. 3petidn with coal. ~ American Electric Power, one of the nation's larg-A single uran h sign came in December,1963.. - est utihties, publicly questioned manufacturers' has as much power as a ton of coal; a handAtt of

  • claims of nuclear economica. Sporn carned his pelleta could supply a family's energy needs for See l Oyster Creek warnings to the congressional Joint Committee on years.

Atomie Enerp, noting that none of the claims b 60,000.hllowatt Shippingport reactor, built ' Jersey Contral Power & Ught Co. announced it "had panned tne test of esperience." lie said he by the government and operated by Duquesne ' was buying a 650,00Milowatt reactor cornplex strongly supported nuclear power, but enticised Light, began operating in March,1957. The 6rst ' that General Electrie would build for $66 million the "bandw agon effect, with many utilities rushing pnvately. financed reactor, the 207,004kilowett ? et Oyetar Creek, NJ. ht la 8100 per kilowatt-e to order nuclear planta, often based on only nebu-Dreeden 1, opened in Morris. Ill., in September, tenth of the Shippingport prim and a third less tous analysis, and frequently because of a desire to 1959. The third plant, the 175,004 kilowatt Yan-than coal and oil costa. Q.E. guaranteed the price ' get started in the nuctur business." hee Rowe, opened in blaanschusetta in July,1960. ' to the utility: ne plant would be a " turn ker,". Another warning came in a widely circuleted Prices were d ing. Firme such as General Elec.. that is, O.E would build it and turn it ever to Jer 1968 report,' Competition in the Nuclear Power Central. tne and Westin sions to supply undreds of reactore in the coming + started nuclear power divi. ; eey%e announcement " caused a sensation,"as the Supply In ins Arm of Arthur D. Little. It said nuclear manag-decades. ' '.. Industry's research arm, the Electric Power Re-era at 0.E. and its competitors "were under severe Ulf0 had sent employees to Detroit to work ' search Institute, said in a recent retrospective. preneure to obtain business for their aiseable ensi-on the !!!. fated Fermi breeder reactor project, "Ite effect was like breaking a log)am." Before neering organisations," and that there was 'akep- . which had a partial meltdown in 1966. From the Oyeter Creek, only 19 reactors had been ordered in, ticism,.. on how long prices representative of 1950s, Ulf0 enginars had attended wwkly lac. the previous eight years. In 1966 alone,20 reactore Oystar Creek could be maintained.' tures on nuclear reactor desip at Brookhaven Na ' were ordered; in 1967,31 reactors;in 1968,16 re. The same year, Milton Shaw, head of the Atom-tional laboratory.. , "' actore. ."N .. le Energy Commission's divtalon of reactor devel-On Ort.,19,1968, LIlf0 Vice President Ed % la en interview last year, Ulfo President Uhl ' opment. Issued a similar warning to the consulting ward Duffy, who later became the utility's prenti said that both Oyster Creek and Nine Mile 1 off firm S.M. 8 teller, which advised LIlfO in the late dent, predicted that lang Island would have. lake Ontario (announced in October,1963, for '1960s on nuclear power costa. nuclear. generated power within 10 to 15 pere. e $154 per kilowatt)

  • began to convince us of ita -

lie and othere noted that Jersey Central Power But sa lata as the early 1960s, Ulf0 ometals, g latomie power's) economie fusibility." 4 Light's turn key contract with General Electric - like most utility managers, did not believe nuclear a But the prtees en which Ulf0 relied proved meant that the utility got the plant for a guaran-power was omnomical In 1958, the cost of a coal a faulty. Nine Mile I cost almost twice its original teed price-and O E. took a lona. The turn. key of-plant was $150 per kilowatt of electrical capacity. e estimate and Oyster Creek-the linchpin os the fers stopped in 1966, the year before Lilf0 By contraat, the Shippingport plant coet $950 per / new nuclear economics-was underprt(ed by Gen-ordered the Shoreham reactor. But although Shor. kilowatt = hen it began operating in 1967. g oral Electrie to attract new bumneas, various cham was one of the first nuclear plants without e. And Ulf0 had other concerns. In the 1960s it sources indicate. guaranteed pnce, LIlf0's 1967 estimate for its was making the transition.hoca coal to oil. Be. In 1968, O.E. admitted that,0yster Crnk had -Continued on out page 5A; Primer-on.Shoreham .a. Locathn: 928 acres (15 emare mies) on Long Island 4 Mart 11 reactors nearty idenocal e Shoreham's are in Current cost estimete: $2.49 tWluon ($2.442 per kilo-Sound. ebout 50 mies east of Mannettan. Almost as in, operation in Italy and Japan and under construcnon in wee in 1980 doaars). Shoreham, escept for a sma8 pasterPy stetp m Wading hiinose, New Yortt, ONo, Pennsykerne and Washirgton ructkn wwWorce Peaked m h 1979. Wm Arver. Half a enale north of Route 25A and one mis east ; State' o 2 515 craft worters; now about 1,500, plus t.000 man-y Wimagbyd (e(nm$wo Plant designer: Stone & Webster Ergneering Co., agement empsoyees who wort so, stor, a webstw, ver. c 2n-propety is divided into 499 acree for the Shoreham re. ' lous contracem or M Largest engw category d actor and 429 acres proposed RCOatvertousames t ConWuctio't manager: $2rw & Webror und Sep-union erana workes em me swarnnnes, who wed and for a coalpiant and an stornic . About 130.000per. tambw. M Since men, a team caped instal gwpe. Omem have included Imnwwksm, carpom eone eve WINn a 10 mie redlue of the piant. , UNICO, with RCO ln control and & Weboler re-tore, wectrical workers, botermakers, and laborers. Plant doecription: neactor building is a cytnder 220. hined es pmled enginews.. Operational worWorce:Overaq plant staff wit number Iset Ngwwfourths the tengm of a football fiele. ' Power evtputt 849.000 kilowetta; 40.000 m run the 272, including pient operstars. nuclear support staM, on-and 135 feet in diameter. Walie are 2 loetNeti eteel e power statiorsaghts, controle and ohr equipment-gnews, technicione, ciencel and maintenance workers. reinforced concrete. Inside is the containment bunding,. 809.000 for MCOs commercial system onough to sup" a mWdet enginew from Genwal Doctnc, e RCO pub-il with concrete and steel walls varying from 4 to 7 feet ; pPy enertNrd of Long Islante current power needs. ac reanone representanvo and 35 armed guards erm tNet. Insee that le the 500 ton etees reactor omsaum, How it wlal worti: Water wie flash to steem under Ngh peoyed by a pnvete escurry firm tiul directed by #ve veessi, a cysrWor 70 feet Ngh and 17 feet across. Wand, pressure m a steel reactor preneurs vessel. Steam wdl RCO supwwoors. Ing on Rs end and supported by huge Draces 100 feet oft '3 flow through pipes to a turtWne, where I we brn tHades the ground. Insee the ructor are 127 tone of uranium in and geneate owetrieny spent swam we be tumed tect 8"' ofe: RCO pmloen a 4 bear li's m yeam s smaa grey penets (Thee is no uranium on este yet;i m wcw ew nowing mieugh a tage condenac and was used as e baws por some nnanctna and amuunang ac0 m barred by laa from ennging nucmar bed m tr* purposes) twbre age and long tem escts of radiannn months be%re operanon.) The pelleW are arranged m..,, purnped g,,cy,,,ch coonong leend,saand,www site una e gets a suscial fedeel ownt usueur a few cvw uses twough whi on equipment reduce safety of the operation to unaccep- , g g, y,,,,, w u table levels. Plant would then have to be decommle. 1 34.720 rnetal tuboe, eacn 12 feet long and standing vor, pmseum vueel and me cyc4 wm be mpoeted. Reecer Woned and as spent fuel removed. Vertous methods of K Ocally m the reactor. Aieo on sete are A turtune tmnding ' we bod 317 mmon genors of wate pq hour. doing to we su under study by MCO and other util-Il to house eiectricity.generanng o@toment, e tiullding to Projected operation date: March,196bt0 years ther seg. d handie radioactive wastes, secunty and adrNnletranon 5 Se Inget target date. I tiuildings and storage areas and tanas. o,iginee e,et ecimete. $65 rnemon tor a564.000-lulo ' 8"' ****"U'" 'O O **'d ***P*- m Reactort cenwel tiectnc Mart u bomno weta reactor,* watt reactor ($120 per kitowatty $217 nwion for en Amount opent by 1Aco to dese: 81 es2 tsman (74 5 g, designed in 1967 and tiuit by Combueton Engineering

  • 400.000 kilowatt reactor ($268 por lul0 watt) after ca-per cent of notan,.

-Stuart Diamond 4 m chenareoga, Tenn. I t

  • pacny was upgraded m 1968.

w ,rs=s isaee46ai ' & a l s a 3 a e J e,4 3 e 3 J g4 3 ; e o g i s, J,, a 3 6,; g g g g g g g g, g g g g g, g g gg,,,q g g g 3 4$sIfsF# 00dioekh))- e $pgs $40poegggf.,,lgg gj'iggygygt,, n g g , H,,t,,$ g g t t,i,1 1 ,,g,, a m o. i ew.- ~ (( s

,sdF 1 ~gm ' > r former NRC ofBeial, agreed, se & upseta. the walls, the equipment and othw items, then re-hard facts? ~

==== than on pleeing equipment, or ahoring up the walla, tions were " based more on Since the Ulf0 plant was not a turn-key, the O Despite prisctiona like thm in the 1968 Sci-utility had ne guarantees from General Electric. , ence magazine study that nuclear power p ant. Ulf0is paying the cost. According to osephNo-l J costs would drop, the bard facts are these: he ac-varro, who was Shoreham ' manager and is I < tual 1960 nuclear -'_.y. _.I in 1968 dol-now UICO's asetetant to chairman, the ' when they reached brk II changee were the project's largest single

l. lare-did not continue $100 per kilowattin 1963, with the experN oest and longest regulatory delay.

g - inoce of actual nelear construcuan, the mta be-v Farouk Eltawila, chief technical supervisor on rise, to $600 per kilowatt, In the same *- coste rose less than Scime magasine ' the krk H project for the U.S. Nuclear Regula-gan a Predicted, to H50 pw kilowatt. Against the back

  • tory Commiwon, said that even if Shoreham w
pwled, completed in 1976, the plant would not have been I

drop of two decades of nuclear construction, the The, Bold Decisions evro% r.ato d-ad*-?" allowed to'huntil1981 at the earliest. ht's e e n N that. ' ' m,:r* ma ha-g e e e,, Continued from preceding page ~ '5 540,000 kilowatt reactor matched Oyster Creek's 'fhO WW Mark H' At Shoreham, the impact of the Mark 11 c $66 million price. changee was ampli6ed because the plant's water In November,1969, a Fortune magasina arti-r \\When Ulf0 selected a reactor for Shoream, noel is much smalle than those of almilar reactors, . ele on the troubles of the utility industry O. E.'s exie ing design was the brk L It featured hat meau h forese per cubic foot are greater on warned that O.E.'s Oyeter Creek prtco showed a large airvolume around the reactor,a water pool the Shoreham plant, since there is less water to the Srm was "more intenstal in developing a underneath,and pipesconnectingthe two.Both air absorb the steam energy in an accident. market for nuclear power p!anta than in making and water could relieve steam pneeure in an acci* Shoreham*e led the pressure suppree- . inunediate pronta. dent, But Wrk I was costly because it required aion pool-was ' t to hold 81,360 gallons or wa-One reason for the difBculty in prWocting masalve stal walla and equipment to absorb the ter, substantially less than pools at other Wrk U costa was that only about a dosen reactors wwe shock. Wrk II designs such as Shorham's plants. N water pool for the krk H et the Zim-and each costing at least several times the an. Qn luger water and air volume to take the mer plant in Ohio, br unm operating, most of them under 100,000 kilowatta Mag the walls could be cheaper lona. Oyster Creek price. All had been turn-urdconente, and other equipment did not have. 'Italving the volume doubles the preneure. Bus B'u een 1966 and 1968, reactors with a to be as strong. The conaguration of the equipment the pnesun on Shoreham'd walls and equipment combined electrical capacity 80 times that of all also was decidedly different. would range from 27 to 97 per cent greater than Ulf0's Shonham reactor was the first Mark other Erk Ile, all else being equal the previous reactors were ordered without turn-H order. In fact,the concept was unveiledjointly by, h containment be Shoreham and the build-key guaranteee-.and the new plants were much larger than any previously. Ilarvarse Dupp called General l'.lectrie, Stone & Webster and Ulf0 in a this "getting ahead of the experience base? The, paper for the American Power Conference in th* ing around it we uulities had increased their plant staes dramatV spring of 1968. ' > ' L W N ?*? '? M hired by 31,1967. At that time,8 tone & Webster cally before they had practicalexperience building It's my recollection that they tooted their horn ; had been involved in nine nuclear projecta. and operating them, he said.When Ulf0 let the nrst contracta for its Shor

  • pretty loudly," amid brmer O E. engineer Briden J e The Bo baugh, now a nuclear critic. *It seemed strange to together the utility *e initial application, Sted with eham plant in 1966, the larseet operating commer-me at the time that a utih with no nuclear exper= the Atomic Energy thmianian on my 15,1968.

cial nector was Con Ess 265,0% kilowatt Indian lence took the Bret order an entirely new design. - 1 plant-half the eine. Other utiliues went even It's not unique, but it was just another chance that ' Enlarging the Reactor further. Sin reactors were ordered in 1966 with ca. Ulf0 took along the way? pacities of mon than 1 million kilowatte-lactud-Uhl emid of the Mark !! ehoice,"We did it be ' During the summer of 1968, the increase in ing two by the Tennessee Valley Authority and cause we thought it was going to be a more eco. long taland's peak electricity use was double what two by Philadelphia ElectricCo.in1967,14 othere,nomicaldesign. AndI'mnotsurethatitdidn'tturn : Ulf0 ometale espected-19 instead of 9.6 per with capacities of more than 1 million kilowatts i eut to be that, despite all the problems. I'm set

  • eent. In November,1968, Ulf0 emciale made enough to supply a million people-were ordered, sure. One can never tell.* I -

what they admit in retrospect was an error: ney ~' In addiuon,federalreguletore,whowouldlater

  • d as were 20 plante with capacities between 800,000 + '? odmit their error, had approve ( the krk Il de. : halted tholt Shoreham application to c and 1 million.

b reactore were to be three times the else of ' sign.

  • 7 ed to build a reactor to produce 820,000 kilowatte the targest planta most utilities had ent built.no Years later, in 1974, General Electrie found as-lastead of 640,000 kilowatta, i

larger eine was meant to take advantage of the rious design problems with the Mark II during a :- nroughout 1969, 1.114 0 continued revising , economies of scale, but oise also meant complex-test. He forces la the water pool were much great' leted untilJan-its application, which was not tolsy was making ity -larger pipes, more value and controle that ' of than O.E. eriginally thought. So the utiliues 1970. B that time, Earth had to be designed, built and operated as an late 'that bought klark Ira had to spend tens of millione u*],'nal hoe ines, the federal law requiring enyt.

  • 888I " ronmental. impact statements had been passed, 000 kilowat plant a a mi n kilowett I g,ggnents had beene a strong bece "I**r e

s. ~, " " plant-4a design. plumbing, wiring and strue - y M p g[p[j g "With hindsight that decision was unfortu-ture-ia similar to that between a one-room cut 4 s ~3 FL N 3 tage end a three story house. d('* Ml nate," Uh! said. *We would heve looked very amart i, h - to have pne ahead with the 6E And we would As demand Ibr reactore roes, so did pricea. As. f eed "tt rating esperience increased, so did problems. * " M *? - e government began toimpose additionalequip. i 3 IF "NS jM *+ T 'o i delays? -y. have probably not had the licensing ment requirements. r.1 i G,4 4M o. blatthew Cordaro, Ulf0 engineering vice d "L*'" +

  • 1f we had stayed with the 640 i

e- - president said,d be operating today, without a l In April,1968, according to its own documents, ,m watt, we U140 doubled the price of Shoreham,ihnn $66 p W i. ' ' dou est million to $127 mulion--enatching the Oyster 4,a M{g M s. m error was compounded when the high de-Crnk (nerosse. But in its annual report to the t. State Public Service Commleolon later that year, y;y @ mand fbr electricity in the summer of 1968 proved en aberration. From 1969 to 1972, Ulf(ya surn-Ulf0 stilllisted Shoreham's price as $66 million. g.4 mw peak demand roes only between 8 and !! per UIEO at the time said it would take four years to yL cent annually. build Shoreham-that it would be in operation in 3 g i ;O*hl f.e 8u11, other utilities facing higher demand. E 1973'upp ealled such fl lanned two identical units at the same site, esv. B e "little more than Jj ng declan engineering and building costa. U140, random guessee? lie ea[there was little hard * :l .I which had planned three reactore-ene at uoyd d data on which to base them. None of the esti- . Harbor and two et Shoreham-planned to build mates took into account the degree of uncertainty one at a time. It made no move to" replicate,* or

f..

that later analyeta, such as, Bupp, aald entstad et 7* m build a carbon copy,of the 640.004 kilowatt rose. the tirne. As esperience mountad, actual pricea came in / nff e " "*** tot when faced with the high 1968 electetetty de. much higher than projected. Boston Edmn's Pil + %ve r l970

*ad-*'a *=sh 8*a

  • N' = = '"

along on the application and design of the smaller a0,00 stoo grim stauon, for enample, ordered in 1966, was eu,,osed to cosi is6 miiiion. ita prie. ro Uhl said there were few opportunities fbt repfl. threefold by the time it began operating in July, 7J ABAEggt cation la the late 1960a Former Shorobam project ' g hgQh 1972. Q manafer Novarro said the need to replicate reae-But such increasee-and the continuing laeues r learned.*probably the foremoet leeson we have

  1. .'N l tore is of nuclear waats, radiation protection and more safety problemo-did not change the utility atti-o Ilad Ulf0 proceeded with the smaller reactor g

tude toward atomie power. I N ', 4 2 De industry's own electricity retreepective in. and with plans for a second unit, it would have 1 1979 sold utilities in the 1960s viewed nuclear retained the option of scrapping the escond propet power as 'a godsend? The Atomie Energy Com-efter 1969, when it wee clear that the 1968 eum. mer peak did not signal skyrocketing power neede.. mission chartered both as the promotor and regu-lator el nuclear power, upacted to license one g,{ Instead, because of the change in plane, Ulf0 reactor a week br 20 yure. i 40 was unable to complete its applicatson for a con. Does prWeeuena were the product of *self4te-6 strucuan perm;t until Jan. 30, 1970, And the E lusion" accordina to NRC e,nnmfasioner Peter m mew as o. , Atomie Energy Commisaton staff did not finish ita W Bradfbrd. hhard Kennedy, acclear espert and WWred UN, proeiders of LILCO, -Continued on Page 12 9 . _.4 L ~ _a -. ~ adee..w%- e y e.

\\ A Utility Gro.ws From. Whale Oil to Atom The roots of the Shoreham nuclear j N As new customers arnved and propct are grounded in the gas light p%' ,. 4 N. hce Prestdent tra L Freibcher a + - ,444, ana whale oil companjoe that illumi. 14 plugged in, Ulf 0's power conta con. nated the farmhouses and Sahing e

  • ' k'3 ' f

- f., N^ villages of long taland at h turn of 3 ,\\ tinued to drop, spurnng even more U/b ^ N consumption. Between 1950 and Y %'k: the century ,N

  • $' - 1960, long taland's population dou.

e. It was that long taland which h b %"[ s . p UITO's electncity sales more than j .. a . bled from 950,000 to 2 milhon-but .,. f. w,'. f i 1. $ g, beckoned to EPie L Phill Cornell graduate and [i,an 1896 - 'd ',j 4 8'"" signer of v 3.. t. tnpled, from 12 billmn kilowatt electne generators who came to ad. [ }c /((g *' # "I' .e 7 bours to 4.4 bilhon. Between 1960 vise trolley owners in Huntington I'i and Northport on new equ ment. o' ! A ^' and 1970 its sala almost (npled 4- -.[" e again, to 13 billion-even though the With its mdee of farms and oresta, ( ?"'- %Mh 0' number of customers increased by and its scattered fishing vtilages, the ..b region seemed to Phillips a new fan. 'fj c ',yg only a third j. ,.%- 9" To meet this demand, Ulf0 built tier, one that could be united by else. ]~ .S 8-L tncity and the new tools that it 5.- ' three platta at Port Jefferson, deu- .t bled its capacity at Glenwood land-t , j. brought. sd1 .'g W 4 ing, quintupled its capacity at Far Scarcely more than two decadee ; e + :. + . xg 4. c.'.,,'. ei .*J *.r : T.S. Rockaway, built two generators at before, in 1879, 'D)omas Edison de-A 5 [# '" M

  • y'Lh M'N,,' j ' - #f Island Park sad added a vanety of veloped h nrat electric light bulb in.. "

inemetent but chesft planned the gas turbines in Menlo Park, NJ The " miracle of a Suffolk County ? light" pronuard illuminauon without h 'N O ." j .-*e uiuta opened there in 1967 b 8 Northport etauon The flrst of four fumes or fear of Gre. And it was quickly followed by new machines: in ' Q-MA -... '

  • _'*.[h. ' 1 4

Its yearly peak demand, which had the late 1880s, electric fana; by 1890, i '- gM ,j been 112,000kilowatta in 1940, was e slectne coffee pota and krona; by # ' Y , J . egf N 7.g 1900, vacuum cleaners, hairdryon, c sW#. h -[ ' i S. ; almost 3 million kilowatta by 1970 i.e y I At the same time, prices plummeted Electncity promised heedom ham j A 7 ? * #; h 'M' washing machines and dishwashers 3 / cost 4 9 centa in 1940 cost 2.4 centa in A kilowatt hour of electneity that I l drudgery. ~ l. [. % ' [;

  • I M 1970

/, f. On New Year's Eve,1910, a small - ,.-.u.r, up of investors founded the long Qt : '.y* ' * / - (, .7 ne 1950s and 19Me are deernbed land Lighting Co. in en offl e at 60 4 by esperta on the energy industry as r h World Trade Center Two taanthe <. - g# ~

  • v,.,-

h heyde[ growth "What dron the for electric utthues, h Court St., Manhattan, now the site of ;-, < ~ : 6 a J decades o

  1. +

'. '8 s, 14>is J enure proemas was unmaang growth y later, they chose Phillips, on. of the f;. Jp w in the ennsumption of eleetnnty." '.' Y,W) - nation's first college-trained electri.' ,',.i

  1. 9*7 4,"

j said the lndustry's research arm, the g cal engineers, to head the company. A4-O ;' . y ',. M ( [, ' e Electric Power Research Inautute J Beginning in Northport and Ami.

  • ~

tyvtile, Sayville and talip with 8,496 ; C William J. Clapp, then-head of the y. Edison Electric insutute, tae utthty customers, Phillips within 20 years.' - - trade organlaation, said that smn en- .neming gas hght companies and 7,; . '. -, r.= e,.- ' " had 137,000 Ulf0 customers by an-c. tire walls of homes would " glow with )..$ i' any color hght you want Schools firms that used whale oil to provide , s >, g. T,,;..I N commerce Ile took over h pnvate, '/ {;,.,7 ! i 7. e)

  • L

- ;b ; '- I'f Anir times that naded to read Elec-and busineesee had hghting levels tilumination. He illuminated the p downtowns, aparking night-time f..,+ " 3 $ !., ', i - 7-trte can openers, broad warmers, pia-k 8 as makers, lawn mowers and a generators that powered Gold Coast <, it, 1 J c^ f 'g,. ? ' g v M thousand other plug in gadgets manmona in northern Naanau Coun- , 4 cl . l.9PR .h .V premised a hfe of increamma leisure j /./ ty, promising lower cost and reliable j' F N, ,5.., '\\. in the growth of electncity use in si 4 - he change was clearly reflertad / e #.,,/ ~ _ y:p service him in an open Packard to look at 'u, b' Y.,j 'J ' - y 1940, the average long taland family "I uand to get to dnve around with used 886 kilowatt hours of electnc. thene plants when I was eight or nine LILCO's Far Rockaway electric piart in 1916 ityanough power to keep 8,Mo wers old " amid Phillips' son, Elba L hundred wett bulbe lighted for an 'the younger Philhps, a director of than today's rates By 1930, howev-Still, power use by individual cue hour By 1950, the same family was Grumman Aernepece and president er, Lilf0 rates drnpped to 7 7 centa tomers was small Refrigeratore using 1.600 kilowatt hours. by 1960 of long taland Amon, a regional de-per kilowatt hour; by 1940,4 9 cents were tiny, televisions were noneus-3,370; by 1970, 6,350, and by 1973, ulopment gmup, said of his father, lar, more effleient generators tent and gaa hghts were still com. 7.3604 ngure not matched smco

  • lle knew the men by their Gret were it near size increased a mon on many strwta (Last yeni the 6gure was 6.9501 namee and he'd hke to say hello to hundredfold betwwn 1890 and 1930 De end or World War Il changed Hut the coal. powered electrtetty to them And he'd take a look at the Ulf0's Bret generatore produced all that leng Island potato nelds support this hfestyle was dirty, and t: oilers.. He wea president of the 600 kilowatta in 1927 Philips added yielded to the 17,447-home levitt de-the mid-1960s brought an environ-company, but he'd helped build the e generator at Far Rockaway that ulopment beginning in 1948; the mental awakening Ulf0 and other plants
  • could generate 21,000 kilowatta. Be-new hom+e quickly nlled with cou-utilittee switched to cleaner est it Philhpe' early acquientiona includ-tween 1928 and 1938 he installed pies starting families The suburbe was cheap, but U R oil irnports were ed the Roslyn 12ght & Power Co, the bur boilers at Glenwond Landing became the new Amencan frontier growtng and uuhty eserutives knew Hempstead Gaa Light Co and the that together could produce 163,000 From 1948 to 1960, the number of supphas would not last forever Hu Nassau & Buffolk Lighting Co.11ia kilowatta. ney are sull running Ulf0 customern grew from 216,000 they began looking toward nuclear onmpetitors could not match his ag.

Across the country, electric power to 314,00N 60 per cent jump But power-with its more powerful niel greenive management and knowl-was reliable and ever<heaper It its electricity sales grew by 100 per and larger reactort-es a way to con-i I ed of electrical technology ke built high tension linee to link heated water for washing when the cent, as the new homeownere began unue the economies of scale spur-l sun did not shine, ao thousands of plugging in new appliances rmg greater growth at lower cost f the small companice residenta in the South gave up their 'the applianceir conditioners, no U N. utshty industry was ap-He ran eda in local newspapers, rochop solar collectors. It pumped TV's, frost-lYee refhgerators, chest proaching the threshold of this tran-promoting the convemence o(electrie water born wolle and ground grain &oesere-were touted by utittues In aiuen when Ellis L Phlhp died et power and producta Among them into nour when the wind did net their quest for growth, they needed the age of 88 on Jan 29,1959 De was a 1926 ed for Westinghouse's blow, so thousands of farmere in the new rennues to pay for the now, Arm ha started had grown &nm A,400 " rosy glow electrie heater," 96 conta Midwest-end desena on long Is-more empensive, larger power planta. customere to680,000, largely on the down and 82 a month, total pnce land-gan up their windnulla In the 1960s, Ulf0 and others pru-strength of coal Ared puwer i $4 9A, and a 1927 plus fbr"Frtgidair, ne electnned long Island Rail moted all-electrie,

  • gold-medallion" But that ume. Ulf 0 had made ita slectric refrigeration-convenient, Road provided transportation to homes Ulf0 m>ld appliances at its first forey into e new age it was par-een tary, enving "

long laland's espansive beaches, Minesta headquarters until 1956 uripeting with Bronkhann National Hy 1930 UIA O wne long leland's rolling Molde and busy villages. At nrot, Ulf0's peak demand laboratory in a ruperch projed to dominant pnwer coenpeny which got electricity's modern conn-was in the winter, en it promoted air test the production of electricity from l As Philhpe consohdated and es-mences years before other outlywg con htsoners to 611 its idle rwer the atom panded, he used economies of scale to areas, due to Philhpe' aggnesne-plant capacity in the summer This in the nest decade UlfD would a reduce the pnce of lua product The neen And, hke Philhpa. many visi. caused its peak to shi,'l to the sum. hecome a enmpany foresking coal for g nation's nrot electne customers paid tors stayed, providing new customere mer begmning in 1968 So, the util-oil, planning e nuclear nature and 3 28 conta for a kilowatt hour of eier-and new growth for Ulf0 Hetween Ity built new power plante and trying to keep up with the leapmg tricity-4he anwunt of power used by 1900 and 1930. Naansu County's pnp. promoted electric heat to nll its now-electncity demand of a region chang-a, 10 hundred-watt hght bulbe In an ulation ehyrocketed fNm 60,000 to idle winter especity "No one ing &om an agneultural economy to 3 hour A4usted for inflation, that ear. 300,000 Suffolk's from 76,000 to thought it was wan the embodiment of suburban Amer- . mote our product /g for us to pro-17 electric rate was 10 umee higher 160,000. send LILCO ica. -ettuart I)tamand . i.,... ,,n. ...s. i 6. e. r, j f 4 j p gy p 9 g +gl i) t hJ tSi} f I 'Mi NEIO

    • 'li 9IEO iu E

M WN e e M 4 pe g '

8 dp,6, ,;.ff,.31} 'M h r. I Q:3o,*rd voted unanunously in June, " "f ,o. --Continued from Page 10 8 d;$ 1p6er hwe the project it soning permit-Jefferson

  • W

,Mg? " ^ W review-enabling hearings to start-un-i 7* ne tal Feb. 11,1970. no formal bearing no. A that the plant's benefits would be *enor-tice was filed Feb. 19,1970-five yeare Mu'd mdune'saW b5 %, sq m.ous* including millions of dollars in - + after Ulf0Pe initial announcement that. ~ oi taaeund ulf0 got strong en. it.-M a nue.a,,m % A,,p==% = pMd On",',T,pN8 &r tory / $ The Lloyd Harbor' Plan

  • t Its supponere in 1966 were still sup.

' The Shoreham hearings are pnerally ; [ M* f j censing proceedings'in the history ofregarded as the most hotl contested 11. 'w, IJER88_~~['7 re in 1970,when IJ1f0 finishedits E? ham application. But by then,oppo- ~ j Y"i " nents were massing as well. %e stage e* commercial atomic power, rivaled only - W'".. I was set for the lonput,most dramatic re-C T ' g by the Ulf0 Jamesfort hearings of e g@IM85 t ~M' actor hearings in history. For environ-N mentalists, it was the first act of a . 1974 78. Dogging 1.two all those yeare Erp i was the Moyd liarbor Study Oroup,y ,*NtJesm --! ][ -d i werful, national movement. For . formed Oct. 9.1967-the date Ulf0 an- ' A4 m-- nounced that it would build its second - Manns d n 1f0,it was a Oreek tragedy: As NRC a T commissioner John Ahearne put it in d a f-@Ek July 1979,*a horror story

  • was about to

. nuclear plant at Woyd liarbor. [V w i.gng' j M The site was a rolling, wooded tract j begin. Based on previous hearings,11140 - near Caumsett State Park. of homes that now rou-h

  • 87EQ7 Y

' CN. 3 #'. officials espected the licensing hearings = + T'% J9 Weyd liarbor la a residential, upper to be a pro forma demonstration of its clase community $300,000 to 4400,000.,' aku._.tJe - p haasusq dassaseen j compliance with state and federal safety tinely aall for Many are mar.aLna on 6 to 20 acree.The - I$ffJrrTrTilmasasumus village prohibits all busineesee-be they i %eens, p,, n,eea,Q2 g8Samue;h > requirements. A Public Service Commis-sion audit would note,*these perceptions, delia, restauranta or nuclear reactora. ' later proved to be inaccurate." It would " * * " " be three years before Ulf0 received a But Ulf0 ofncials said they did not con- . ~., . sider local opposiuon much in those days, construction permit - "Maybe we were naive,* eald Ulf0 at-Not only did the hearings take far longer than torney Edward M. Barrett *But we believed nucle

  • ahowing a child gathering seashells, he caption, ted ether problema developed for at power was the best alternative; we thought it
  • Atomic cloud over !Ang Island. Ilow does it affect anyone er.ti ' '

Shoreham. Gaws were found in reactor would be a nice, clean neighbor" Short of scrap you? Your health, your safety, your children.* ing systems and with the AEC's Still, Ulf0 could claim ample eupport for its emergency ping the atomic prgect,'we were willing to acam-nuclear program. On Jan. 21, 1966, Gordon T.compliance with the National Environmental Pbli- 'llhi recalled that *in those days,alting a nucle ' Danby, pneident of the Wading Ither Civic Asso-cy Act. In August,1971, Ul modate,* Barntt said. neering at Shoreham, put holds on equipment ar power plant wasn't perceivedes a hugs problem '. eistaan, wrote to Ulf0 board chairman JohnTuohy, say terminated design work ...It was a nicoclean plant...abeautilbf thing for any community." lie said IJoyd Itarbor seemed public utility,is very eenaitive to public reaction te and prepared ibt a long

  • beautiMly situated
  • near 14ng latand's popula-your plans,,, having (an atomic plant) as a struction permit April tion center.Thus a reactor there would ante trans-neighbour... has produced a anost favorable re. Its nuclear project was ann In May,1973 Ulf0 amid it could start com-setson in our community.*

On June 2.1966, virtually all speakere at a ' mercialoperationinthe summerof1977-eticking mission costa, he said. to the same four year construction schedule it pro-But Ulf0's Llopt liarbor announconwnt pro. Brookhaven Town Board meeting aald they fa-vored an atomic plant at Shorehan it was a strik posed in 1966. It said 8horeham would cost $506 voked a group of viltage residents to do a two year study of nuclear power. And on Nov. 8,1969, the ' ing contrast to the otrong opposition of New York million. De utility thenleft day-today management at IJoyd liarbor study Oroup released a report say-City residenta to Con Ed's 1962 proposal to build a-Shoreham to Stone & Web ing it was unalterably opposed to atomie power. reactor in the Ravenswood section of Queena Itob-De study group. which included doctors, lawyere ert Tomlinson Jr., vice president of the Shoreham and the contractors and turned to other energy bat. and engineers, etted safety, economic and environ-ties. In 1973, it proposed twin reactors at James-mental reasona.it had great respect ytthin the vS ' Civic Association, said his group wanted an atomic" port with a combined espacity three tim - plant but opposed a coal plant."- ne study group was founded by William Carl, a Pubhe emetale and local newspapero also lent. Shorehan in 1974, Jamesport became the first lage. Grumman engineer, who later said that its initial their support. luverhead Supervtaar Itobert Vo)f plant in a new state hearing o versy again brewed. focus ase not anti nuclear but merely *against ing, voda caued the Shoreham resetor "a perfect dustry comins into a completely residential area?'- industry" tbr the area. Shoreham Mayor se. Meanwhile, Shoreham's construction schedule ' alipped almost daily. Worker productivity tag ' as more trouble than it was worth. But the study ' body.y sold the reactor *would do no harm to any-111f0 eubaequenuy abandoned (Joyd Ilarbor. Beatr Suffolk County Ezeentive IL 14e Dennison Interest rates started rising. It was often to set materials. The project's cost was increastns by group was already so galvanised by its research expressed his support. Brookhaven Town Supervi-that it transferred its op tion to Shoreham. It sor Charles Dominy said be was *more than more than $10 million a month. But cireulated a brochure, bout 1mns taland, pleased

  • with LIIf0s Shoreham prqject and his tie publie scrutiny.

t id -Hearing Put Nuclear. Power on Trial entifle community to come in and testify to make It is a steamy norning in 1970-thelast day of the Atomie Energy Commission revised spuffica-summer. In the auditorium of the Joseph Edgar tiene for the emwrency core cooling erotem this a landmark case." Elementary School in Rocky Point, homeowners, - la those 82 months, the cost of Shoreham rose - As the heartage progreened, a Ronkonkome civ. ' le leader read a mother's Day letter to his grand-school children, pohticians and the luminaries of ' &om $261 million to $606 million. the atomic age begin to assemble for the opening But while delay was an avowed goal of the op-daughter about atomie power. Former Buffolk round in a nat.onal debate over nuclear power. ponents, a reading of the more than 20.004page County EsecuJve 11.14e Dennison hkened fear of De heartnte en a construction permit for the Bhoreham heer4eg tranaertpt shows that acuans the atom to ancestral fear of the bow and Shoreham nue ear re.ctor would be the moet hotly taken by the Atomie Energy Commlaston, the impostor posed as a renowned actentist. Atto contested in histort-e symbol of the awakening hearing board, as well as regulations and new re-Ibr IJ1f0 and environmental smupe ecology movement. ney would be the first reactor search also contributed to the delay. another-to the point that the hearing esaminer hearings after F.arth Dey and passage of the Na-A study of the Bhoreham hearinge by the Nata-admonished them against acting *like schoolboya." But the heartnre also raised lesuas that would tional Environmental 1%licy Act, the (Lret forum in ' ral Resourree Defense Council, a leading enetrso-which environmentalista could raise every major - mental law firm, found that 118 days of delay-* someday command national attention-questions nuclear issue in detall-from waste disposal to the ibus monthe-was due dirwtly te AEC rweense. about human error, evacuation, mettdowns, low-possibility of a guided misette creaking late an De AEC hearing esaminere elao eeuand delaye be-level radiation, sabotage, esploelve h esume of schedule problems De officiata, the re-eiting of reactore near cities, the transportation of atomie plant. For all the publie drama that outrounded the ' port said, were unprepared for long, eentroversial nuclear wastes and energy conservation. 1979 nuclear accident etThree Mile taland nucle-esentons-Nine eare before the occident at Three Mlle er opponents hke Eschard Pollark,Ibrmer head of Dere would be 70 acesiens, most held in the faland, t!.e 14nnsylvania plant was a mabr ele. the anti-nuclear group Crttical Mann, trece the ort, ballroom of a iloliday Ina en Neerenset Iffshway ment in the Bhareham hearings; it was uand to In Centereach. More than 100 witnessee would be compare evacuauon and plane crash protection. gas of their movement to the Shoreham hearings. Even though a lot of people woke up after Threg questioned and 401 legal briefb introduced by the lisrold Deston, the top federal ometal at Three Ele Island," Pollack said, *wo regard Shoreham time the hearinge ended May Ip,1978. But the Mile taland. made eartous safety rulinge en Shore. as the real leginning

  • construction permit,itself, would not be laeued un. ham. Joseph llendrie, chief of the Nuclear Reguis-To 1.11I0 ometale, however,the hearinge re-til April 12,1973, due to required dealsn changes, presented something else: a costly and protracted the niing of other documents and a review of the tory Commianlo the staff that did key safety reviewe of Shoreham.

etreue that cost the ratepayere c(long taland mil-hearing record. Dr. Alice Stewart came from Onford ifniversity, . lions of entra dollare. A decade later,they still bit. la 14eptember,1970, the opening statements on En 1and, to testify about her researt h linking tr.edi. terly blame the plant's opponents fbr unneceenartly both eldes foreshadowed the historte rature of the cal reye during pregnancy with thildh,od cancer. prolonging the hearing prucwee, beginning a cycle procendmge, 11140 attorney Edward Walsh, said,"Ihe au-John Oohnan and ArthurTemplin,who helped of delays and onet everruns that have plagued the elear age was born in war and now it seeka,,,to ' start the government's respected lawrence Radi. During the 32 monthe Lilf0 waited for per-serve mankind la peace? etion laboratory in Californ[a, discusand low level projart since. mission to construct the plant, inflation continued Irving IJhe, etterney Ibr the Shoreham oppo-radiation. De statements of bomb.espert FAwerd e to. rise, New.Ywh 8 tate and 6 federal court Irnu nents, entd. Turpurpose le not se rauch to bioch an Teller were quoted. De Atorgie Enw ,,__ _,___,__-tnaa hearing boa, rd was boeded by alon's three .,eeerae3* e pose.d.e.n.st.ly.n.e.w enetron.m.e.n,tal.r.e.qu. ire,me,nte.and_* partneular plant, but to encouroge the nation's act- 'r*'M* r o ' In. ' aam m

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  • 6,,.

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m. sw-1 Irving LJke of the Lloyd Harbor Study Group, an orgarnatlon thal became Shoreham's most porstatent opponent, testifies at a 1978 heanng i

-Plants on Trial.

  • But ifit was a nahing erpedition, the oppo.

nenta.uid eisim a_e ca h 2ii erough ne..amg a,,,ic,..oL_Hce, the congreassonal f General Accountin Of l e a scamms,e ,t Jack K Campbell.former governorof New Meal. eember,1970, and January,1971, they chal-with the same conclusiort j co. lened AEC anaertions that reactor emergency Arguments that reactore needed to be he IJoyd llarbor Study Group, which led the cochng systems were safe; the teas were chiefly stren ened against earthquakes, that workers op mantion, wee repr,sented uke, who had by co ter, AEC witnese Richard Ireland re-woul need more radiation protection and that j he ed form the hre Inland stional Seashore opnnd that, "We have the utmost conf!dence in uranium miners would face health problems were l an later represented Buffuik County in its fight the abihty of the emergency enre conhng system? later acknowledged in the Ibrm of new design re. against offshore oil dnihng De group's leadera, llowever, in an Apnl 7,1971, test on a non. quirementa and regulatiora Ann and Bd1 Carl, were active in the national nuclear arale model in Idaho, the system failed-De pnasibihty of airplane and mianile crashes environmental movement. and pr. 4ded the Hier. steam pressure kept the cooling water out of the consumed many days and hundreds of pr goe of ra Club, Audubon Suciety and others tojoin them. reactor. Re implications were staggerint failure transcript. De Lasus sornetimse assumed an air l knvironmentahet Barry Commoner, Nobel iln a real amident could mean catastrophe. Oper. of unreality. laureate James Watam, nuclear industry chief sting lants were shut for weeks of ro-analysis. A De opponenta, for eaample, sa,id that a Nike I Carl Walske, nuclear navy founder Ilyman Rick. few a ed equipment. For Shoreham, the devel, mianile site 7,000 feet from Shoreham posed a ( over and many others were in see way tavolved opment meant more hearings and delays. danger. But AEC witnema liarold wella noted in the Shoreham dehberations. De study group also enagged IJIf0 and the that the pmnt was academie,saytn.*lf you had a The lingering dispute over which side most AltC on the National Enetronmental Policy Act. detonation of any nuclear warhea an{where in l rotorgred the pmreedin o began in January, he group amid the AEC was violating the act by this ares you would wi out not only t e reactor 1 971, when Lhe delive a e to the Amerl. not considenna thermal pollution and other to, in t to, but also the Ni e lie of the surroundmg country.,rtulee site and much j l can Har Aamortation. lisa topic ow to turn a nu. eues Coincidentally, the l clear reactor hennns into "a nailti. media con. But the AEC repeatedly disagreed " Pollution N'he site was elened as Shoreham construction j frontation." Uke told the bar, "Each day must la not within our junadiction,* one AEC ofncial j become a dramatic and suspenseful event,,, said at the tame If0 witneance anid Shoreham's walla could 1 phrase statements in a hvely manner-which. On July 23, 1971, however, a federal tourt withstand a Boeing 707 crash. De study group { will read or anund well when rwarded in the nest ordered the studies, ruhng that the AEC's posi.

  • red tha e ne a

nd j jg, g\\wt an' day's press or radio account. tion made a mockery"of the envimnmental act. g, p g p,ns ah i !J!f0 lawyers angnty introduced Uke's pa. !JIf0 had to do a 1,000 page environmental re. Ing through it, espenal when the reactor top ger as evidence at the Shoreham hearings a port; more delays Ilearings on the issue did not was off for refueling [J 0 consultanta estimat. memth later, chargiry that the Uoyd liarbor,end until Jan. 19,1973 ed that such a crash would occur once every i Study Group wanted delay for its own sake and Still, the only delaying tactie billed as such 100m yurs, compard with me ructor's 30 f, not an orderly esamination of the tenues (J!f0 was the one bke had dearnted to the bar-his year life ne study group still wanted a dome enr the reactor attorney George Freeman enlied Uke's method"a strategy for a "Devid and Gohath type

  • confron*

very anphisticated attempt to destroy the system, tation hetween a small group of professionals and Even the immediate question-to build or not l by using the system." "the utihty, the AEC technical staff and the tl* build the Shoreham plant-was touched by unre. l Dut it was apparent from the first seasion (n tana d Amerteen industry ahty. wiile the hearings suppnardly addreased Rmky Point that the heann s would stray well For thie "newwin situation, Uke prearnhed,a the teue, l.Ilf0 was already building Bhore. [. Iwyond the immediate inaue o e construction por, multi media confrontation." Colorful statements bam. In fact, the time it pt a construction i rmit, IJIf ad spent 377 milhon on the pro. l l mit for an atomie reactor on inng taland. and attention to the"rhythins of media cours e . The day the permit was granted, Apnl 12, Nb3'E5'$a!("bb"n5d5' a' 'e a b .'aba~ d'*b ha E Ef.'o W.E" $)'aIGr? 5 E E i.E E" l< a wobd hole leaks in fuel roda, with naeum rnducta n-the on to a othe agra h One, the Notel laureate director of Cold i. IJ1fD dce PrnSent Matthew Cordam me,i f*Pinglata th*femmua8t7 thu8h P 'at "at* a . hydmren esplosion following a reaction hetwee'n spring itarter lateratory and co.dieroverer of 4 l ere was no a. the fuel rwte and the coohng aster; the minuas of 1)NA testified on cell damage caused by rade. The timing, Cordare said, left shoreham functionina e, 'tirment due te human error

ggg, l

, caught in the mhtdlei,f everything "liersune the Lhe urg the AFC te prepare for eaare Maaaachusetta Institute of Terhnology physicist ) ne of her, who etsimed to he e medical dortor, d ernam esammation lasted past Apnl 3,1978. ' where reactor inaurence would not cover es-Nhoreham tocame subject to new state envimn. tended shutdowns due to malfunctione-the very and government adviser, was actually none of a mental heannus. which filled another 6,000 6asue that has threatened the operator of Three thome lie was an impnetor, who quntioned ear. pean of tranarript. I,lli O did not receive an en. Mile faland with bankruptcy tous witneance at the heanns terure teing un. vimnmental permit until June,1972 Study Group witnean Itoger langevin, who masked and arrested by the iBl. g bke called the crues esamination at the eon. ran Orumman's quahty aneurance program fo' Mtudy group mornters were unruffted -they und the quntions posed by the hngus Watam hed struction permit henness a mbing esamina. the moon landin and space shuttle, said rearto'. been nonethelena tahd. .etuart IHanumd I' tion of the lasues.* Cordare cal ed it "a total Dah. programo dete too much on enluntary stan inc enredauen." dards eat by the industry stastf. Yurs later, th, Tornorrow: The Project Managers g i e A

4 1 r MQ { o l s ~ e,~ c,s. -PART TWO s e The> Project Managers: l Where They Failed l nt will opwate in March,1983, and cost (2.49 11 Stuart Diamond In August,1977, current LILCO President ta, lion. 7 peesaay Environnent wraer Wilfred O. Uhl (Wa a senior etco pnsident) eu wrote a meme to Charles Pierce, then company 'Cwtainly, enrything haan1 gone glorious i TAe owrull mission offhe Shoreham % clear pruident. In h awme, a copy of which has been since w(ve taken over the job? Uhl said recently. Amr hw is so design, masimet, and obtained by Neweday, Uhl said: "Ihe project is Many problema faced by Ulf0, such as late j esart op a reliable and safr Nuclear A*P continuing to fall behind schedule under the equipment delivery and changing regulations, i Station en ecAedule and as e reasons 6te coet. guidance of Stone & Webster." have been widespread in the nuclear industry. i -D""** N *'h ', A month later But some utilities facing similar probleme are apment. Last fall,Ulf0 took over formal man-completing their planta for half the cost of Sh i Shonham pmject managw, 1974 78 Uhl said,"there la much let-i 88r mordination; there is e fbil knowlede of ham. And the Publie Service Commisalon is con. i IEN federal regulatore finally autho-rimod construcuan of the Shoreham nu, who's in charge; we have a better wwking role. ducting en investigation to determine whether claer plant in the spring of 1973, the tionship with the unions and with the contrae. there has been mismanagement. tor? Newsday's study of the Shoreham p,rojnct t = j long taland Lighting Co. peeawd.to han left its But Shonham's cost and schedale ha e con-identined sevwsl key especta of the project's j biggest problems tahind. +,. The 32 month batue ibt a pumit had bwn tinued to orpand. , ownapment that esperta say extended its cost i massive work force h toen anaembled and was die Service Commission noted that UlIO's ab 3 won,in the face of un nted opposition. A A 1978 audit eommissioned by the State Pub. e Ulf0 jave day-to< lay control of the pro-about to swing into full gear.%e plant would be, ty to manage the project had improved. Dut the jact to Stone a Webeter because the utility's own I t operaung by 1977, Ulf0 omcials announced, same audit criticised management as having "se-engineers and encuuves had virtually no esper. i and it would cost $506 million. - . rious denciencies"in cost and schedule centrol. fence in nuclear construction mananment. But But shonham's problems een far from erw. The audit criticlama are renected in a series of that lack of espwtence hampered Ulf0's ability I "We nevw really knew how big it was going to 48 violations etted by the U.S. Nuclear Regula. to monitor Stone & Webster's performance. *1f get," eald Joseph Novarro, unut recently Ulf0's tery Commission totween 1975 and 1981-etola. you are inesperienced, you can be misled on a project manager,et Shonham and now Ulf0's uona covering inadequate management, improp. day to<tay beats? entd one senior ometal (br assistant to the board chairman. 'And we wers,er design and poor housekeeping.nle spring,the Courter a Co. of Brooklyn, the piping contractor never, in the beginning, prepand for it? NRC rated Shoreham's dalga and engineering br Shoreham. The result was connae6en and delay. Pipes quality ea leloe-erwege Ibr atomie construction e Bwause of regulatory chansee, Shonham would arrive without value, talvoo without prWeeta. construction contracts were open. ended " cost. pipes. Important documents would take 10 days As late as 1979, Ulf0 planning manager plus" agreements in which contractort earnings to go from one part of the site to another. Adam Madsen told the Pubhe Service Commis. gnw with the cost of the project instead of teing When 1977 arrived, Shoreham was nowhere sien that *Shoreham.',. has admittedly had a ened in advance. Construcuen esperta say such near com letion. De combination 6f inflation terrible history of probleme in construction." errangements, not uncommon to nuclear projects, and dele had more than doubled its estimated Joel Blau, ammission counsel, said,"Ihe pro-provide little incentive to complete e job on time and at cost. Ulf0 ornetale said, however that cost--4e 118 billion. And Ulf0 ometale decid-Jact le still not under control." ed to curta61 the authority of the enginwrtng Arm in October,1977, Ulf0 settmated that thwe was no other wa7 to get Shonham built. l , they had hired to manage construcuen, Stone & Shoreham would operate in September,1960, and 0 8 tone & Websters informauch and inven-I would cost $1.18 billion. Today, Ulf0 seye the tory system at Shoreham often failed to match Webster of Boston. t,, r yern v, i,# . 9*, 8 d ' N \\,e .h, ], 'h e '1 i rqh,3 p g g a rv e.- I, t; p lJ, , My * .7 " p i 4 er 1 f $ ..i ^ y 1 ~ s, av y l ~~5

N w

W, c h ~ (a$ So ' Pipe is sup;mard to be in. ~ 4,y4 k b stalled last. We installed y i S the pipe frst because } Q' nothing else was here,,, y ~' ,N and find out the pipe was e in the wrong line. So we'd i n? f' y y l g i take out the pipe and put it in again.* g ..g gg - 'n --Aythur 11. Czarnomski l

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  • 5-

/* '~ 4.- <t the cornet equhment with engineertng and in. Ulf0 in 1969. For 1.!!f0 executina, the ar.t Nor did ULCO denne beste ensinaring de. ran 1 ing,gement was to constitute "on-the-job train. signs for the plant.-an action that could hold stallauon plans. Thus, the probless oflate equip. t Novarm said.%e knowledgeof thejob was - down coste, the audit said. ownt delivery was compounded. w Stone and Webed We watched.' ' nore was conhalon among Ulf0, Stone & 't e Stone & Webster did not change the eine of the plant's reactor building when the plane were : In the urly licensing hearings, Wofford said i Webetar, unions and contractore about who was reviand in 1968 to include a larger reactor. De - Ulf0 had not retained an independent group te la charge. resulungerampedspaceemakeregulatorydesigg audit the design and construction even though ' ' Novarre enid local contractore one used to changes discult, costly and timHonourning. some tasha were outside the utility's expertise. working with UILO, and that Stone & Webster ' ' Piping ta in there hke spaghetti,* aald Arthur IL.I And Ulfo Senior %ce President Charles Davie " *became hke a third party in the ring.* UIf0 Csarnomakt, project managw for the piping cop., admitted in last year's hearing on a request for an Preandent l'hl said, *! was really convinced we tractor, Courtar & Co. ,,e, incrosse in electrie rates that Ulf0 had no one had coordination problema? e e Ulf0's cost-contal procedune for Shore.j in Bona w pennanen nunnor 8 tone & Web. Stone & Weteter, he said," claimed that con. ham placed layers of bureaucracy between eenior de/s wwk and eut c arpetwter's Shoreham ' didn't think they were really the boss, A thero-although tractors wouldn't listen to them because they mon than half of Stone & dectason.makus and neld engineers,according to". fee was f r work done in Boston. In addition the Ulf0 nmnitore initially ; Courter [the pipingcontractorland theunion and the 1979 state audit. De audit said that thei Stone and Webster were earnply not gatung along Ulf0 board of directore did not have enough : ' information to understand how fast and wby easta' wwked mit of Ulf0's flicksville engineering

  • with each other? UlIO had insisted on Courter were rising and the alternatina. The audit add-bendquarters,they did not move to h Shoreharn ' & Co.1 Stone & Webeur bad pmforred another ed that the board did not get a fhlt wrt' ten report site until 1978. Meansbile,the work they moni i $rm. >

en Shoreham untd 1977, four yeare aAst con ' tored was e ad ever several hundred scree. W Boos Allen audit added that there were with mon a L600 penple labortna daily en ',

  • interface problems
  • between Ulf0 and Stone

' struction began. Ulf0 had been a builder of fossil plante-a many thousands of ta.ka, reconied ta tona of- & Webster. For example, Utfo paid for the coal and oil-when it began its nuclear prograra ' thousands of documents. equipment, but Stone & Webster chose and or-in 1968. No one on its staff was espertenced in %e fact that we were not technically quall i dered it. Bone Allen said Ulf0's purehasing ned to monitor everything really didn't bohr us strategy was not clear to the Stone & Webeter aueiear eeaairt etiea aaaagemeat "We had traditionally built our own plants, s et all," Uh! said recentt. "We had,quite a bit of. etaff. conndence in Stone a Webster. Similar problems wwe noted by the U S No. amid UlIO President Uh!,"but with nuclear,, - At Shoreham,it was Stone & Webster that clear Regulatory Commiaam As of March,1981, (U140) was concerned that we wouldn't know ennrenated the wtahas of kntractora, unions, it had etted the prefect for 46 violations ofits res-enough about building a nuclear power plant, Ulf0and ulpsrent suppliera Design changee

  • ulations since 1978. For e ample, on Feb.12, elace we never built one en our eway -

Rus, Ulf0 in 1967 awarded a contract to ' MN pm by htone a Webster and Genwal 1976, the NRC said that

  • obsolete drawings were

. Stone & Webster to design, engineer and build Electrie, which sold Ulf0 the reactor, and the not removed from the work area,* paralleling Shoreham. Despiteitsconcernaboutthecomples. changvie were made by Stone & Webster. complaints of some supervisore. 6ttee of nuclear construction and its own inespert. ' UlfO *often did not rettew changee laitiated - On March 3,1977, Stone & Webster was etted once, Ulf0 left the momtoring of Stone & Web,by these two sourcu," ecordict to management ' cal cable installed correctly. It ess etted June 2 by the NHC for repeatedly failing to have electri-star te a mmall team whome only nuclear espertance sonsultant Boos Allen & !!amilton ine., which - --Continued on Nest Page was that efits leader. Andrew Wotroni, wbojoined conducted the state audA i ew"-

lous dates between April and Au " e lie esid thisesponsive penroescon. De supervisor, whe asked not to., en't fianctional defecta* and that anat,1979, by Stone & Weheter. The tinued through most of19n0 because be identined, provided an inch thkk replacement p6pe thun the manufse. Courter supervtant enid 8 & W had *we had pipe in hand. If we sont it aheaf of Rhorehain documes,ta to ' turer did not have such faults. She ' encarently not done any of the re-bach again ne telling when we'd get support his story, 6ncluding Nit 'also disputed the superviant's elaun qulted factory testa le venry the more pipe.g 4 1348, a federally required report

  • that documentation was needed for, pipe's tendit6an. After the pipe had lie said more than 1,000 feet per.

' been cut to else and taken into the haps 3.000 feeb ef pipe had to be documenting how matertal defecta,the warehouse grinding. ' Nowarre charactertes.1 the incic reactor building, it failed a pro-ground er ot.herwise checked and re-are handlad Joseph Novarro, l.!!f0's asels Y. dont as an laulated one. The Courter welding in. ion. paired-e b that tank months with ' dosena of >workere. last to the board chairman and until supervtwar said,however that it wee, Concer ahmst the resulting recently Mhoreham projert manager,

  • typical of the "pnnr hand,ing' af enn. delayo, a Ulf0 tonstructinn au-

"No one stopped it, because they l confirmed many of the detalle ef the structlen problema et Shoreham, ervleet made Llie deelsten te wanted to install any kind of pipe inspector's story that there were The pipe wes earhon eteet, epecin. rtnd out all the deforta in one just to show they're making pro, said. h" e they look it to a were. greas.* the supervient said. % they ace the Courter eupervleer marke en the 3 6ach pipe, that the ratten number R A.100, sold to Install it, find deforts, grted i il Ulf0b Uuron Allerestlierrteen, rut ii.ut, rew.id ii. wh.i a w.t outste of al pipe was accepted on the site by in. e,ettere for architeei. engineer Nr.anlmad.byuasi.eiaiit. heum and did it? Stone & Wdeter and that the de ' lerain, Ohio, plant. It was Code "Ihere's only one probiern,' the time and money,.. Dal pipe 3 facts were dierovered during more, Class 1 pie,meaningit was nuclear supervient asid. 'You do not take should have been ripped out and sent thorough testing by inoportore fbr anHety prede. It was to be installed Code Class I piping to a warehouse back la the beginntas. It would have -the i ing enntractor. a throughout the reacter building in. and grind out fartery defecto-espe-seet a quarter the price

  • I o,elpttay 3 g. week eeld " eluding en the m.e.lg p.., rte.gn.ll.y,ith.ouq. m.n.enta.u. e.t..ne.3w~, w..muert inemend t

e eta doew of au ~ .ne ,3 m s r ,n, g -.......... s .e,,g,4,E,3 gigg7,g,~g Q,,, p, h Qg 4,gg,, j g g,, y, ,,,,,,,,,j , g,,, g,m,,,,, n,cQ, ,,v,w g,,, y,, r 3 W# A eed et mw m -l _, , y,g. gg % g-hatract'!an-The Top TefE A'Primef on the . gage did not proviae ulco with.uch protection. i O o i "A vendor who b supplying you with a 810.000 Q o gg piece of equipment could not put his busineen et . Tets coste enctuce avessar lust, cost per trowstl. risk for a day's delay of this plant at $1 million a in1980 oonare day," Novarre said. *lle has to protect himself... 1 ping Castle Castper ananettgeestg It ownds terrible. In the public's view, everyone is I tanne esseelt teessesserer getting screwed. But... we can't sue a guy for snwonem 3Ies 83.443 Sans a weemer, one day's delay on Shoreham... became it would hre vo's f**'s teme put him out of business. Or he wouldn't agne to f.elt ev e & aos tescom 4 supply us with it in the Bret place? wress unne t-s '11 4 n wetos. unwe: asen.npsen GenerW Eucme ct - '. g,as a 3F t 014 Swe 4 weesier. In[0rinallOn and Inventory - The, IOMa&nre e-e new vet Geners recme eL Construction of Shoreham proceeded in what saam paau ir,,,, . 34 toeg ge;;;g nesa,,, -Conunued f>orn Preceding Pese tev*ene eene,s tee IJIf0 labor minuena manager William Fitzgib. 1980, for the same infrecuan, with inspectore not-iiiiiiFees I 89 8.aeN. bone called 'Sto and starts.* John Jacobsen, project "'* d'"y _ Geaersl*ct's manager for Drave Inc., the stael contractor, called ing that the failure was not documented or taged pet was cited for lasta!! ment e(hipment not t,tsi si e a weemer. it *berky. jerky

  • temervierI 3 as it should have been. On Aug'14 1980, the pro-

@nmunicaba Nwmatka deaMe spectned on engineering drawings. And there wwe Nieceis ing the e mples p ant was lacking, acc eding to I' w An o-h in*=umi -*i wa -- oneu. oiano. fw,o. 6ousekee,ingan in ,',,r ,,e sensiuve equipment, welding sharde lying around m,se esecod a wices unhke e. coal er oil plant,.wmilions of documents ence. are required to twify that equipment has been cor-in safety.related maa Giii,see e is t est unnednenem 4 rettly ordered. Inventarted and IR9talled, so the Stone & Weber Vice President John Ryan de. hee HyvyeM Conn'weys wuen@euw ~ plant will operate safely. Every safety weld re-clined to disruas the Shoreham project details with atrwiit 18 f.473 pews sesen. Newsday. 'We de han a reputation

  • Ryan aald, tac >ess Geore sees quires at least three inspecuans--including by X-rey or sound waves.1,foually, work cannot proceed "We de not have any qualma about lmng able to e not I esmesses one manage constructaan."

without proper documentauon. no Boos Allen audit said that the projnct's ' Cost Plus' manual inventary eyetem-instand of a computer .yet.m-caued wq=ni report.of mi.ing mai ' fi* As Shoreham's cost grow so did Stone & Web. a was "P"' tally important because the eter's fee, under a "coeptua; contract that IJ1f0 mid 1970s saw progreentnly longw lead tima I ometale later acknowledged provided httle incen. ' for equipment delinry-4n some casee more l tive to meet target dates or hold down ecsta. From een tn yure. In M, M and een uuS its original eaumate of $16 0 million (for its aer. ties had been warned about this: the Fedwal etces en the smaller reactor IJIf0 originally Power Commission nported that late quipment planned) Stone & Webster's fee has reached an ee,. delivery was the second leading esues of power timated $347 million. plant delays, behind labor problems. This Novarve said that IJIf0 *had alware honda stemmed perdy hrn ne glut of noder wdm to build Shoreham under contracts that guaren. b in ne eady m and also hm se unwtHing-teed contractore fue in advance. "A oned price , nees of corne undare to mwt pwedar quip-contract to the chaepest way,* he said, Werkere and supmisors interviewed by News-snent standards At Shmhara, Stone & WeWar managed me the +r eo tr at reharn to n f io,t e memi...ewo-.t a sin an hou,_ ins,manon,,e,,,n ab'le t we. a tad to build ' waiting he amedeel inspecuena, befon wwk could And Sma Allen found that important docu. continue. Typically, one superview said, it would,,enta someumes took An to 10 daye to get fHwu au w

  • g g g* g '" I,,

,take84eneaWebsterinspectoremorethananhour one past of the ette to another-en "enceasin*' sign c ng en d, e eav bk , le tome 8md n8pect a 14 minute welding pb. ' amount of time, it eeld, In fact, B,oos Allen said Wannw.--anw i - -e < u aye m na-u-a c eem what we want.d t. bum bec.us...e.e steamntters at Shoreham, enid be had la reassign planning, prer supreiston, material unavailabt. continuaHy changing what we wanted to build... wwkm but to Ave umee a day,10 workere each hty,,, and lack of communication.' We now contracted with major contractore be time, and waste more than an hour each time, b* In December,1974, anon than 34 yeare ener' any kind of Asad price week? * ' *. cause " pipes designed by Stone and Webster didai M1 eonstruction began, a Stone & Webster task At er the construct a enwe can't de what the en* bree etted the necessity *te eliminate duplicate in. ster n reham ey ginesdag use it should do. So the plana han to Io spections and inspection Ibrme* at Rhoreham. eidad them with rising need bee but also permit. tad them te pass along entre soote securring during A supervtaat who has since left Shoreham com-back to Booten. De enen late equipment at Rhonham also had plained that Stone & Webster did not keep the plane construction. ~ l Warnu W. 0ertman ofTechnica18ervices Con. price escalauon clauses: ne later it arrtnd, the eurnnt. lie said plumbere and weldere someumes I sultanta Inc., llouston, e construction manage, more 14 east. In 1974, some statalees steel entres had diffent meta of plana, leading to instenroe l ment consultant, said such contracte contribuk to armsed 31 anonths late; pipe supporta, sena la whleh workers would And the route of a pipe ' amonths late and pipse,10 months late. they were installing bleeked by a concrete well er ' rising costa. ' o "The architect. engineer er ennstruction man. But in no ease was a eendor held reopensible, steel colema. His hustrated workers, who had to ager news thmugh its seats to the uuhty and the utihty Rows through its easte to the ratepayore? h8189 Oertman said dM said,"When you're in an enetronment in which the regulattens are ennunuously changing [ y <,M'M 6ui is,e 4 a seso,eim6-eawe ty,e of oo.act r g C,a-W and the enenwring la act far enough ahead of '

  • n

. - s ~7,4j;3.,7,, g;j^ ).,9qw-n ennst,wuen ie cn e somene, s eet of drewinge - abich is 6 4, you don'i,enii, have an, e,ite,n 77 ',S

  • g#a,

,,. a2ys.m m. noneihei,ea, uifo.mciale enn,as, the oest.. mq7mmm .g pie. man e. m.~ y m enou e n.,semeni gave,sione & we6eie, niue in. 'n m u m cee. ne,r nova,,o 3 - *numm iwm=m2_- =n- - 9-eomano,e mua as seuntry,evesied esi man, e:: a w s'at n a mTevais;ng e+a+.usencw inimiewe with es,ieua uuhi, omdai. aa profeeta with onet plus agreementa employed meth. D *m e% we i. nmii H.ing e, eta pe, tent.,e 1 Ashanees Power & IJght, ehkh built a reactor e durin0 pears construction p f'

b. W.Ja&T;&,,,,w t{?-
    • '0****'

licensed at the same uma se Shoreham far about a (8!" 1 e irr og " Ml*** quarter of the price, rekend te inenase the maad [*]* n,e,,,,,, noes fee of Dechtet,its arehitect engineer, as the penject

  • ** h l

I ***',' % % increased in else The enmpany had ineontina and 1 o ,f penalties to encourage Itechtel te meet 6ta erhed.

  • ]

ule. "Every time them was e change in the project

  • NTt*

e<edriseO we changed the target, the inconures and the pen. 5 aiue., eatd winiam cevenaugh.ihe uuuire sen., j lor etre president be energy supply, a e*

    • aam

. e e e e e m e mum mu ......., m........,,,,,,,,,,,m_,mo y,,,,,,,,,,,,,,,,,,,,,m _ m _,--s wait for drewinge specifytag new routes, be said, la a recent report to Ulf0, Stone O Cebster the same building.'lle added that the design was Caernomakt Shorehamprejact manager he the stated that when kit construction began,by had chosen by 8 tone & Webster. , pipingeantractor, Courter a Ca,esid,*hpeissup. %und it Cf5 cult to accumulate the 8sega and Edward Brabison, Stone Q Uebster's met puesd to be installed last. Q installed the pipe Aret engineering anel normenary t3 malatana the enstneer, aald, *1 don) ese the eine of the as being particularly sigtuocant.* necause nothing else was hore. nen the valves and. Shoreham ar ala * + *

  • I pumpe and hangere came. We would install them,

'LN 't. But in a recent report to Ulf0, Stone & Web. s. stor daeigwed the buiLiing sta.s as a major prob. and nndoutthepipewaslathewrongline.Sowe'd, CT81Dped 8 Pace 8 take out the pipe and put it in ageln.' is,. con,est.o i,83e,es esoni.inmentgiaj 8 tone & Weheter's layout of the site has also ne lack ofecordination was complicated by the... making pipirg designs far more involved than I been enuctand by Ulf0 emetals. *the storese small budding. Although Shoreham's power level at other planta

  • the report stated.

areas are all our he re half acre,' Fitagibbone ' had ban increased frorn 640,000 to 819,000 kdo-ne report added that the building and contain-I r I easd, adding ti.at the lack of a central warehou.e watts, requinns larpt pipes and other equipment, ment asas has also licuted the number of workers has caused wasung and scheduling problems.

  • the saae er the containment and the building hous-there at any stven time-e problem also noted by By September, 1976 - 17 months after son, lag it were beatcally unchanged.no structure la ao Shoreham warhare who have been laterviewed by i

struction tessa-the schedule had slipped more,.emailthatworkershanadimcultumebackntung Neweday. than 12 months Due to both enordinauen and tea., saw equipment ordered by the federal government. The problem oas also confirmed by Novarn dur problems, engineenna drastage wwe anres,' said Ulf0 President Uhl: 'I don't know if,and by Jerry Wdaun, who enreen the Shoreham -Conunued on Nest Page ing suur anonths b e. there was a sonacious destance at any point to use ,w l v .w"s . ~ o' ,,r LILCO Chooses'a Designer-Manager signed the Shoreham atomie plant ute and close toits target of $100 nul ' nere and Burne & Roe, each about Un consequences.* Stone & Webster,h Arm that de, tore the sine of Shorehansen sched ' about $16.76 million; Urltad Engi-neceerary to evaluate any competi-and managed much of its construc-tion. And it was building a esmila-iy $14 6 mihn; Ebaseo, about $18.76 But attorney Irving uke, who re-uan, has served as arttutect er con-etard reactor. Nine Mile 1. million. presented Sbreeham opponente in strucuos managet fas 16 eo'nmercial

  • Uhl aald Stone & Webster was es
  • Ulf0 President Uhl said last fall, hearinge en the plant's construcuan reactore, including eenral that have lected br Shoreham because it had
  • I can may in an unqualined way that pumit, charyd that corporate ties been the tarpta of ertucisan hem *the greatest technical competence Stone and Webster was selected be-between Stone & Webster and state or federal agencies.

and the most espertence la nuclear cause they wwo percoind to to the Ulf0, noted in the uttle report, A recent state audit of one of those ' power

  • best, all thinge eensidered on an ob" were factore in UlfUs aslecuen of 1

projects, the Nine Mde 3 plant being ne process Ulf0 used to select jective evaluauon which did not in-Stone & Webster for Shoreham, built en Lake Onterto by the lens Stone a Webster wascrtuctead,how s'.ude price.* Ulf0 emcials have denied the taland ughung Co. and four u etate enr, kr *1ack of rignr* by a 1978 De firio la now to be paid $347 charp grdin8 u h,o l N2w York uuhtsee, erhood some of stata Ainded audit, ne audit sus million Ibr Shoreham,30 umes its uttle rem Bhareham's problemo-engineering goeted that UlfUs anarth for en ar. ertainal estimate and Rve times the g

ggg, e' Whit-1 that barely ksepo pace with eenstrue-.htteet. engineer wee not as 19em esumate br the enurs projoet. ney Biene, was & director ef Chase t tian, failure to mut erhedulee end exhausuve as it could han been.he Of that amount. more than $2'e md.

k Manhattan Bank, thea LILCO's I soet-pliscontractathatprovide enly audit did say that informal selection lion, chiedy for engineering, has milimal incenuve* fur contractore to was not uncommon among utihues, been charged to UIL'O since Sep-larpet stockholder. i i hell down eoets' But it added that in 1973, Ulf0 ' tomber 1977 when displeasure over Chase had estanded a $3-mibn i Nine Mde 3-fur which Stone & hired the same firm to engineer Ita lie per/orman,ce prompted the utility line of cr@t to Ulf0. Stone & I Webster la both daigner and eon. Jamesport nuclear project-4 project " to reduce 8 tone & Webster's role in Webster owned a per cent of Trana-j strurtten mensger and of wbleb since blocked by state emetals-by managing the project. In 1981, the conunental oss Pipeltne Corp., Uli Ulf0 is an 18 per eent owner-has suhetanually the same prorses.

  • firm has billed Ulf0 se everage of CO's major natural gas suppher. One grown in east boca $400 milba te ne other four Arme emeking the $3 muhon per month be enginaring of Ulfde directors, Eben W. Pyne est en the boards of of Old Westburyd W. IL Orace & Co, SJ 7 billion.

contract were United Enginare end and easistance la construcuan man. i both Ulf0 an Stone & Welster to also construe

  • Constructore, which had it other egement.

then manspr for the controversial atomie prg)ecta, Bechtel, with 18; la 1968, Arthur D. Uttle Inc., a whens chairman,J. Petar Orace, was Clinch her brwder reactor, to Durne & Roe,and Ebeece,each with ' Cambridge consulung Arts, did e a director of Stone & Webster. . 4mpage report,Tempetition in the

  • Buch ties, Uke said, *give top 1

which I.!!f0 and eenrol hundred three. j , ehr UB uuliuas han sentitbuted,,e Ebasco had been the arebiteMas Nuclear I4wer Supply ladustry" he management en incenun te reward ibading The estimated euet of the ~gtneer for Ulfysyrev6ous elsht ' the Atomie Energy Commission and eentracts to blends,whether er nat it project has jumped from 8660 million fused units. Bechtel, tne world's latt-the UA. Department of Jusues. He saves money.' j b 1973 to 5J S billion today and the est engineerimg Arnt, le the designer report trated the corporate ties be ' Ulf0 Vice Prw6 dent tre Frel. , New Yetb Publie Hervice Commie. er budder of 66 etthe 178 U 8. aucle

  • tween uuliuse and firms that build 11cher said,"I doubt anyone bare =se s alon,la 1977 barred furbe centri. et plante opereung er under son. er supply equipment be nuclear enn sognisaat"of the business use.

buuone by Illf0. By that uma the strucuoo-double that of any other planta, se well se banks called open. ' Uhl, whe managed the Arm's else. I Imns !aland vulity had paid $4.8 Orm. Beehtet else buds the Alaska le Anance such prn trtcal engineertng eeruon whee it mdison toward the project, pipeline. De report sta

  • Dy thle study. hired stone & Webster, called the la 1979, fouleraleme6 ale totnparer., Accordmg to Ulf0 omelate! ator. we do not went to imply that they are ertueisen "a real stretch" and said the

,17 shut down Ave East Coast rose-e6ewed at the time,8tene A ' Aster peculiar to the nuclear industry or businese un were *abelutely... eeumated sta serv 6ces A. " ;.am ( neessaaruy harmM to eempet den not a factor

  • la the selocuan.

tore doelped by 8 tone & Webster 8 ' because the Arm had made errore la, would east $18.4 millien; Dechtml.,,, A case by case enaminauen le 8teert I)lamand raiaeung es,th,uaie si,eeans me. t n n@1t hME ( + n3 ,l.r. ment,owerna re,asnen.t u , c~~f. m., uidiu-ow ui,,usieme,e milhone d '*nehete,,bundem i=l. E.Ry.y -a" % $ . 1.. ' n y e,# e, g w% so . a w 6ae en ini.rneuenai,e,ut.u.n s an ee,e,ien d a,aamt.n,inee,e w o y, 4' t, g M its more than 78 foreip projects in- % 1 G * ',k # elude rennertes la Amen qnd Eu. ,f" ,C m' i*'".*'e%sp* <'Q** ',$ud 'Ij repe; pettnchemical plante in India cnd Japan; e neuenal binod transfW a6cn senter in tran, and ett.Ared pow. ,) ~ c y* "r a et planta in ftaudi Arab 6e. Ita U 11 penjerta (nelude 40 hedre- /' i , (lectrie planta, e thousand mifee of { eiertrie tronamtesten knee and a va-rJ, e,, ".Q, riety of rennertes, retenrhemleal planta, east and est planta. It enee erstrelled three util6 ties-Outf a i Beates. Pupt Mound l'neer & IJaht. -* ', .ier w, J 4 i rnd Virginia Electrte & Power Co. Ey 1973, a0 t tent of the firm's ree. 4 enuse rame m the ut.hty industry,, .' ectording to Forbes mesasine ..~ la 1967, when 64 was one of Are 'M'- hE Arme esening h design and son. ' 4 ' ' i, , % *e v ' ~ ' rruction ventract for Rhoreham N<i' Btene & Webster had lose innind b nme nuclear prejseta, laeluding f. g****".=**'"" yJ "J"*- ~ j$ the neuen's first temmerrtal roerter. J ,..e# a f M. C, Q,, ~ g g i thi,h opened et shippingpas, re, p. ,,,p.g j 9 i.$p*W' ' ? ; "'dg, s.,,, in iea?. -A. t,J o utf0 Prwident Wilfred Uhi nat. s d.,, e/c;'I' .y,, 4h <[- ed ht floone & Webster wee then a eA % h. 3 paiehtng the Connecticut Yankee n'**>*-+ Plant la tieddam N=h-er* war-stone & Webetw emoeie trom left. Weem Shenden, Edwens erobison, John A Sman and John than in 1980 D ey f H r e n d. n. ;!;, M *.I.. C h.n. W.e b 1.el H !,.e D s.t t le.e..O H t Mil ' r e m p e.- i s... -.... t {. r...- I E I' \\. Ulfdrn s agemenl Uhlaand that now,"at ', east quaMy%f the informatioUth4 Cwre ree@hs when thers tra owruna you uncuretsna them On sevsrsJ occasions, Ulf0's top omeide 8 When you're deshng with en outands agency such taled to accurttely predict a met increase 2nd , sa Stone and Webeter, you always feel that thers's schedule daley, evs:n a month befors one wea sn-something they're keeping frorn you " nounced. But there are indications that Ulf0's man-For nam e,in September,1976, Ulf0 atter-agement of the presset also hampered the abdity of noys Edw M. Barrett and Edward Walsh Jr. its top ometata to detect prob 6eme-end solutions-told the Stata Pubbe Service Comuniaeion that "No quickly N Boos Allen audit amid Ulf0 did not changes in the conssruction med testmg schedulce y control costa by haalysag the differences between and cost estimates an presently proposef A o money hemigoted and anmey actually opent. is amid month later, Ulf0 announced a cost inosene of that there was httle emphame en compding the $100 milhons snonthly shypages to seeintain up-tmlate cost esti-On /pnl.17,19"9, Ulf0 board chairman -Centined hem Preceding' mates as the propect esyssede&'*1)ses gynuated to, damine Masosaald there would be ao y delaye ' ~ '

  • '8 the wand echadule k on whos hnm plant.
  • 'peusce tie the U 8. Noclear

'tary comade-

      • '""'8 8"**ce*tt emit miWay em 1974 httle mere than a month Alhovaham, the nu D

e.on, successor to the Atomic Energy Comentnuen. Even though taos chanees 08am in-later4be company announced a delay of nye

  • fhis bualde 6a toe n mall," said eteamntters' foreman long " 's otrnost impose 6ble to run pipe ensad the empe of job, Boos Allen entended. months and a cost inemass of more than $200 md-Ulf0 should have been able to'assees the appro-bon.

= Stone & Webster originally said If0 could pri*t*n, ees of the heure quoted to compiete the la January,1980, Ulf0 omcials testined where you are not hitting other work, that 8horeham'a final cost would be aLout $1.6 build the current Shoreham tant for 8261 milhon. b nsimenbahty for matching cost prgect6ons bdhen, Laes than three months latar Ulf0 of-As late as Ma,1973, aAer rv years e(delay ibr against utual custa lay with low 4m! manag* Scials announced b larger

  • cost nacname in heannge, the im told Ulf0 that Shorehara's eseg ment, the audit said In to higher manage. Shoreham's history: from $16 dllion to $2.2 bd.

had risen to l506 authon in Newmber,1973, Stone ment ients the lower len ometals dad not discuas g & Webetar held a weekend plannin meeting in the nasuna fe agor out mrmns, nor the neulta Wn Pubbe Service Comsdesion staffers in Hyannia, Maas, and concluded that S ham stdl of any cornetive action, the audit said-November,1978, maked the reasons for coat in-could be Anished in late 1977 for $650 million Boo AJien noted that in many other utthties, creance in major Shoreham mntracta, Ulf0 re-Hy May,1974. Ulf0's internal eetsmates of the bud t omcers reported to the chief Anancial [nded, "We do not possess any information Shoreham forecast e 10-month delay in commer. t Ulf 0, neld personnel-who also acted wing the cost increases, if any, for these core emcer cial start upJom July.1977, to May,1976-end as budget of5eere~eeported to their unmediate au-tracts. We did not make any quantitatin or quali-a pnce nee frorn $564 nulhon to $695 million. '!here was no pubhe announcement of the new periore lative ju.dgmenta concerning any such cost hrsally, the audit said that a review of the min-g,,,,,,, pnce until two years lat,, utes of meetings of Ulf(Ye board of directors since AskM ht h Mn d w p mna aM In an interview last year, Uhl easd that Stone & 1969 led it to camelude that the board did not ha" upward revtsions. Ulf0 Premdent said last Webster " consistently u.ederestimatod" the cost of enough information to understand how fast and g,33, fhe t.uth of the matter to that i didn't reahre design changes "f'hanges cost ten tiewe as much why costs were nang, and what the eaternatives the degree of uncertainty. We thought we had sa we thought they'd cost."In fact,en May 1,1973, made reliable estimates of the remainine work but the estimate for deafgn changue was $18 9 md, Ulf0 ametala disagreed In commenta made it turned out we hadn't." were Lion less than a tenth of what Ulf0 omciale to the State Pubhe Service Commission in Se m-Nm 4 "I thid n b h tMay now beheve they are costing bor,1978, Ulf0 esid that "the 18horeham pes-than ever before, altbou h I am, sure we have said By the end of 1976, the schedule was sh sentation made to the board af dirertore usually ,g g g3 g, two weeksenry mo i.h The reactor'a prico chm involved a full disrussion of the rhange and ree-tion now than ever before. With that behind from 8696 milhon t > $969 million, the completion sons therefore us, with that uperience, we are in a better p&ution target shpped fkom May,1978, to May, IM9 No standing enmmittee of Ulf0 directore than mr bebris to predict the future " The data needed to track these ineneens was died monthi by sentractere and compded by Stone sionitored the Shanham penjess and the board Aa Uhl and Novarro ke, Ulf0's projected & Webste old personnel, eernrding to Stone & never met at the site to revtew workaheets or Pnce Webster ometale interviewed in Boston Uhl con-erhedulee. Uhl said recently "Doords of directors ths O-tl ut firmed that monthly reports were avadable from don't do those trinda of thin, he said. naen again-to $2.49 bdhon. the time flill construction began, Boce Allen noted that at east two directors it Though cost increasse have enetinued under interviewed upressed dissa*iefaction with the Tomomm The Urdone i How it Works Shoreeam s reactor core Wdt contam ura-i; mum m small gray peilets that ht rsee verto . cal fuel rods hhe heads msede a straw The reactor is destQned 30 that the atomic fuel } produces pesceseiy measured amounts of . power by a controlled cha.n eacten W$en the reactor 4 not operatmg controt rods made of boron are eterspersed among tne .; e g tuel assemt*es to absorti neutrons and pre Q i vent a cham,ucten When the control rods are removed the -, tues reaches temperatures as he as 2 000 j,*) degrees f shrenheit This meanse heat rapully a j tys',f,I f ; bsms water m the pressure vessel to steam ,3 , *; iJ,' misch then travels through large o pas to the turtlene tumir'g its blades khe a parisheet to 6' generate electncity The spent siasm contmust to a condenw whlFe it rushes over thousands of small pipes cor'tammg cood Long lstand Sound ester Heat--4he reactor s poncte product-as trans'er'ed from the steam to the Sound es-ter ficactor mater is theri o ped back to the g a essu e vesses and the cycle is repeated r 3* aurroundin0 the reacto is the contamment ehth has steel remforced concrete walls and h a steet krwr the contammenta maior part / of the reactor e defenw system m an aco-7 dentwa d'vided hontontaily hke a doutHe - 93t00 boiler The 100 halt white cools as the rea-tor.16 called the dryweit The tiottom ha't called the wetwed is a c9ambe partty bleed I \\g eth water the drywell a4 wetwell s's seps p rated by a concrete barher t ut verttal pipes catted downcomers pierte Ine barnet ( it one of the reactor i steam hoes were to m "I '('h bresa the drywee wouid hil adh h'0* pres' ll w* ' "i sure steam wfuch wouid take the path of least res, stance down the doene smers and I mto the ester poot ihm pressure suppres-hW Lu*a M Ai4 M E M 4 4 sen ' pool would ease the pressure by turn-mg the steam to ester g Is eese, oreseu Tam see,uma ens use Leews e. . =.. _.. _ _.., "BuildiWC6mpurable7Plgnts 'fof Less x. G,.y -., E,! In Ohio, three utilities are build. 7: ! tr.*gty. MNM M >g Ing the William 11. Zimmer nuclear ' < - r f'Ik l lant, which is almost identical to < g,w ?5 f1 - g;

i. :

UsplantatShoreham hcensed '"'(- Et about the same time, buffeted by a.5' 'Q7 N %.* 1/* "9 ' % )% , 2 'h' the same changing regulations and emYh. eoso I.es i$'an oneon labor. loying highly id uni

c. :
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  • ', q'.* ! '

bait that I 1 L of Shoreham. w -Q % "t In Georgia, the llatch 2 plant,11- ~ ., * <1 consed 34 monthe before Storeham, R, M. '1 Ifi . hts operated for more than two ,3*; !c yeare. It la ao similar in design to Shoreham that it is listed with Zim. s,' Q 'It:t 1 it" mer and Shoreham in the long la- - J,. i I;nd plant's Anal safet.v report as ((@ [, } .d {'.l. having nearly identical guwer statia y, f. tim De cost? One4ft.h that af Shore-P 'm .t' ham. 4 +< [I At the time of licensing, Ohio's ,jil Zimmer phnt was to cost 8240 mil-t11 lion. Georgia's Itatch 2 plant 8330. ',! !h million and Shoreham 8350 million. 'yf; During construction, Hatch 2's

  • j N cost grew by $150 mihn and Zam-

,c nwr's by 8960 million. Shoreham's cost has grown by $2.1 billion, to a 'f e - ; - @', y, ' - + 'g current projected cost of $2.49 bil. 33' ' Mb f 33, y -'y ) lion, for t.asically the same equip- ..cy-( y, t, ', }kr p+ ment and power output. } s' j '\\ .g> ... 1 , g, Yet according to Handy Whit-8 L man-the authoritative lades of con-g a( p struction coats-the costs of I constructing a nuclear plant in the i North Atlantic region are lower than in any other eartaon of the coun. Nrw York City in 1979-the year of .b-no hourly rate for pipenttere n Shoreham's construction peak, was $17.87, compared with about $16.50. for Cincinnati and 812.83 in Atlanta. But Shoreham's total labor costa are more than double thcae at Zimmer.. mn 'nal times enore than thoes at. Zimmer plant in Ohl0, nearly Shoreho a tsh and bconsed about the,same time, le beirg built for half the price 2 All three projects, hke awst recent U.S. nuclear projec's, have eumrod chitectl,'lley, go build this plant for and the reasons for any variance-combined cost of $1,109 pw kilo- ' in varying degrees from construction ' us,'" said W.A. Widnu, b Georgia eithw above or below, watt--lees than half that of Shore-delays and cost ovwruns, which are utilitfe nuclear vice president dur-Georgia Power also hired fewer ham. traceable to inflation and other orob-ing the construction. We felt that if workere for 1(atch 2. Ulf0 had as no Susquehanna umta wm de-bms common to the atomic induste we did it ourselves, we could better many as 2,500 workere et Shoreham signed and built by Bechtel-ene of But Shoreham is the most expent hold down costa." at the construction peak, and a conft-the engineering firma rejected by . sive nuclear reactor in the United So, Georgia Power hired a etsKof dential Stone & Webster report in Ulf0 in favor of Stone & Webster. States, according to an innation-edJ 300, half of them with at least sever. 1977 onid the construction spaces In another Mark Il project,in Illi-justed study by the U.S. Departme it al years of eonstruction management were too small for that many work-nois, Commonwealth Edison Co. is of Energy. In 1980 dollars, Shore. expwtonce and about 25 with pro-we to meet the schedule. Georgia building the lmSalle nuclear plant al hsnis cost yr kibwett of generating vious nuclear construction manage-Power's force peaked at 1,700. a projected cost of 8833 per kilo-expecity is 82,442, compared to ment espwience. Widner said the "I'Swe's just not enough room for watt-a third that of Shoreham, de- $1,185 per kilowatt ibt Zimmer and nuclear people were hired away from. two thousand five hundred people," spite a slightly later construction 8654 for llatch 2. W Navy and from established archt e Widner said. etart after a similiar three-year de-Only two other atomie pmjects teengineering Arms, such as Bech-De Georgia utility also worked lay because of environmental oppoei-with la:er completion dates come. tel. De utility's project office was en one shift on straight time for much of. tion. close-Nine Mile 2 on take Ontario the alta from the start the construction, rarely with a see. Not all Mark 11 units have been as and Washington Public Power Sup-And from the beginning of flatch end ahlft or overtime, Widner said. Inexpensive as Zimmer and Susque- , ply System 1-3 in Washington State. ' 2's construction in January,1973, Ulf0 regularly has had seveal harna, however. Anohr Mark II Acconting to the Enugy Depart-the utility required daily progrees re-hundred people working do651e time project, the twin Ilmerick urJta near ment etudy, Nine Mde 2-in which porta from contractors. At Shoreham, on weekends, according to the com ' Philadelphia, have, like Shoreham, both L11LO and Shoreham's design. LIlf0 did not establish targets for pany's former project maneer, Jo, been the subject of calla for abandon-ment because of skyracketing con-or, Stone & Webeter, are participat-pipe welding and other taska until seph Novarro. e I ing-will cost $2.074 por kilowatt in four years after cenetruction started Even with a one-year abutdown, struction costa. Both Ulf0 and 1980 dollars and the Washington and Shoreham'a price had tripled to the Hatch 2 reactor began operating Itiledelphia Electric, which owns plants will cost $2,076. $1 billion. At flatch 2, the utility in June,1978. Shoreham la nos due Limerick, have BBB bond ratings, Accordingtoliarold Denton.direc. management from the first day of to operate until March,1983. the lowest investment grada, mean-i ter of reactor regulation for the U S. construction required workere to. De Zimmer plant, built under the ing their interest on borrowings la Nuclear Hegulatory Commission de weld a cwtain number ofinches per direction of Ohio's Cincinnati Gas & higher. r Rnal cost of a reactor depenas in hour, lay a certain amount of pipe of Electrie Co. to Hoecow, Ohio, 28 ' But the cost of Limerich is stilllit-Il - large part on'the degree of ovusight wire, do a certain number ofinspec-miles him Cincinnati, has been fro-tle more than two thirds that of tad competence the utility enerviene tions and a variety of other taska. quently mentioned by New York Shoreham, $1,714 per kikwatt in evst the people building the plant. The utility's staff or 300 ovwasw the State ometale in trying to determine 1980 dollars compared with $2,442 You can't just hand a blank check to site's workere on an hourly baaia, if Shoreham'a construcuen has been Ibr Shoreham. somebody and say, 'Go build me Widner said. mismanaged. ' Around th country, planta 11- '4 f one.' " if they didn't meet our targes,we Zimmw's construction is consum. consed as long as nye years after ne construction of the Itatch 2 re-terminated them," he added. He ing one-third the number of craft Shoreham are now projected to begin i setor by Georgia Power Co. demon-electrical contractor was fired in man hours as Shoreham, which has operation at the same time. One is atrates how a utility, with ne 1970 lbf not meeting schedules for double the work force. The Zimmer St. l ucie 2 in Florida, licensed May '4 aspertence in nuclear power and two months, he said. Yartous work-building is larger than Shoreham's, 2,1977 (compared with Shoreham's with many of the serpe choices as ers were fired for not meeting sched-so the Ohio utihty is finding it easier April 14,1973) and expected to oper-l Litf0, chose a different coures and ules fur ibur days, he said. and cheaper to add the additional ate in May,1983--two moithe after 5 built a plaat for far less money. Widner also said that the eom. equipment required by changing fed. Shoreham. Eun the mu:h4telayed 9 Wh'le LI!LO decided to hire Stone pany's board of directors at its oral regulations and cor,troversial Seabrook plant in & Webster to build and design the monthly meetings was shown the ne same O E. Mark !! reactor New Hampshire, licensed in July, 'g Shoreham plant,with a utility moni-same charts and tables that the pre-containment used at Shoreham and 1976-more than three years after 8 toring team of about dve people, joct officers saw at the construction - Zimmer la also used by Pennsylvania Shoreham-te projected to begin op. Georgte Power decided to be its own ette. Each month, he said, there was Power and IJsht in 6ta Busquehanna erotion in December,1983 oruy nine conetmetion managw. ' an esamination of how much money 1 and 2 plants, licensed at about the months after Shorehem. 5' '*We didn't any to Bechtel(the ar ; wa,s spent compared to the bud 6st,- same time as Shoreham but with a, ........ -8tuart Diamond s ,....~................. 1 aumnsmmm.w~rrm!"wtm ' m"WMO MCT!'A'"""""" ""~ m we-pe +. + - m., ~' ,is a w* "

  • f ^.

a 'N b LPART THREE Got Lesslp LILCO Spent More, From Workers ation is 12 to 15 man-houre kilowatt, Reyn. wit % top omcials of other utilities Indicate that By Stuart Diamond okte said. For plants e begin operation Shoreham construction earkers were act super. ) vined as clowely as their counterparta on other peessar r.nvironmeos wrew THE 3.000-member work force buildirr,in 1990,it is 18 to 21 man-hours per Even the W n Public Power Supply UA nuclear projects. ] the long ! stand Lighting Co.'s Phoreham p stomie plant has done less woris for more. System Planta 13 in sahington State, listed by / Union spokesmen eratacted last week either pay than workers en any other UJL -Jr.: the U.S. Ensrgy Department as the second most denied that Shoreham workere had been less pro-expensive American nuclear project, are taking ductive or blamed the productivity problems on . nuclear project, an estimated 21.5' man-hours per kilowatt to poor management er extra work caused by regu. in fact, the almost $800 million in wages and " build-only half na much as Shamham, natory changes. benents that will be pa.d to Shorehem construe, "Ihat's of the whole story of Shoreham" Oswp Daly, habem manner for Steamat. ) tion workers by the tune the plant la flaished er.' ;said J Novarro, until recently LIIAXys ^ tersImca li ht J now operating in the United Statee-end ever*

  • Shoreham project manager and now na coeds the entire average cost of a nuclear reactor we kept removb the board chairman. "Ite taken us g,me : samdeand remove. Install and remove... My men are fed up.

ages, with benenta, about 824.75 per man hour-hours and ilollars to build the tant. l Inst . eince 1973. In samt. LIILO oscials ve maintained Yet, a 1978 productivity study, a copy ofl that high labor costa at Shoreham were inevita. men an at.t loafing on thia M.* which was ot;tained by Newsday, found that Jeffhy Dubin, attorney for Laborere local 66, ' Shoreham workers everaged 1.5 hours of

  • direct" ble in tight of local union practices and tSe utill. 'ty's determ the men...,

work in encis 7 hour da that failure would so all i they opent another al. According to the study, hours waiting, half an. workers on the M in an affari to maintain the .constation echelule. , hm pneumsy We penseing % hour starting late and quitting early and an hour Illf0 President Wilfhd Uhl said recently,. Prgeet fw M u ~ o walking fhm one part of the one equare-mile site *1aher costa more in the New York metropolitan At Shoreham, Newsday interviewal the half. LIILO estimates that by th time Shoreham area tocause wage rates are a little bit higher dosen h6 supervisors who were allecti. ) to another. l is completed,it will have taken 32 million craft and becaase some eithe work rulee make the la. voly responsible for virtually all of prqject's work force. labor oscials and Shoreham man-hours to build-89.5 man-hours dbr each. bor les emetent than in other f arts of the coun.tr...ht adde to the cost-enaybe itla ten er ) Accordmg to Andrew Reynolds, manager of per cent... " atton, most responded to cesstions only aRer be-kilowatt of generating capacity. nuclear projecta for the Fedwal Energy informa. Uhl added,'We may have not alware been as ing promised anonymity. tion Admfnastration, and William R. Schriver, emclent with labor as you could be because we N3t only did the statements of thces inter. who has done nuclear plant labor studies for the wanted to Anish the plant as quickly as passable. ' viewed support the concinaions of the state audit, U.S. Imbor and Energy Departmenta, that figure '!here are occasions when, to be more productive. they described the ainds ofincidents that contrib. is the nation's highest. you wou'd use fewer people, but it would take sted to the project's low productivity-workers I "Ihere's no comparison," Reynolds told News.. longer to' Raiah the plant... " eletping through their shifts in remote corners or day. "You've got the big apple." But according to the state audit, much of the, opending hours stirring the same can of paint in "I can't imagine anything being higher than worker wetting on the Shonham prWect was due an effmt to look productive, on-the M breakfasta that." Schriver said, to "inadeqs. ate M planning, supervlake of vodka and erenp juice and coffee bres ka that-i 'the average for plante now beginning oper. '... an!!ack of communication.y d. inter. views. stret.ched well b,e,y An 4 7' N m pnnw .w wrx y l +... mg zu 4r.~- (- d h th .WMS * ? P I Travel U ,n>lt .. S M Gs e

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a= dx ,[ k [ 2.9% o Sasoci cri sowrbhour cfay,E./# r Y E'fe* E En $ N M, f M.ru e, N.e. a M m n.npwe& e n 24 hours Wash-u 35.7p inidUtee 1 e. j . p i e / t .A I I v b f j -.-e--.-- 1 i .......... 2.)

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  • 9

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M l g 3pr n fQ* w" D y. ,,4+ c f - 1 a s. .J -~ 90 , m. a, , Shoreham workers on a 15 minute coffee break Sept. 3. State audi: ore have said that many other breaks toutineh stretched beyond the prescribed time l But the situation appears to be far worse at makers, who weld steel plates and tubes; labor-Shoreham, where labor costs are the largest sin-ers, and various other crafta. l rle elament in the 82.0 billion price tag. Ronald De journeyman wages for those crafia range 8 e Uberty. chieforthe State Public Service Commis-th>m $11.74 to $18.19 an hour and $15 98 to L l eion's power rates division, said, 'It would be $26.31 with benenta. Dey are represented by to-cheaper to build in other areas of the state and cal unions almost legendary in their strength. I i ship the er down? In many areas of the country, utilities gain j New y's investigation identined several strong bargaining positions by thnetening to use j factors that contnbuted to the project's low work

  • nos-union labor or by wt,rking with the nadonal et productivity and soaring costa:

union organizations. But the construction unione e Ulf0, on advice of Stone & Webster. in the New York metropolitan arem well as s ,made no attempt to negotiate a job site agree-those in other strong labor areas, such as Chics. ment specifying the handling of disputse and go, Detroit, Philadelphia and the Pacine North-working hours ror all craft umons. labor erperts wehve prevented non-union competition and for other utilities any that such pacta minimise acroetthe. board agreements t y combining broad ,alowdowne and stoppages. De agreementa typi* organisation with a virtual monopoly on skills' j , m, 'm , celly provide for shirt work at regular pe or with j w, UICO ometals, union spokesmen and Shore- , a small bonua At Shoreham, work on a 1 second. ham workers all said that the mid 1970s reces-r I Tt.ey also detailed a pattern of worker sabo-and third shifta until 1977 was at double pay. ~ sion, in which Shoreham appeared as perha l tage aimed at prolonging the project, an apparent e Work stoppages have pla ed the roject. rt to U O from tone & long Island's last major construction project r response to the construction industry alump on An October,1977, rehmonths ofdelay to a single Webster attributed i some ume, mouvated enstrucuon unions in W lAng Island ' Gashes called " arc strikes"--metal scare. such dispute in which boilumakes struck for ein nuclear project to stretch out thejob for as long as made by a welder's torch-were described by al-weeks and then refbaed to work ovutime to make P'"' in' g that it would simply be in' asid, *rm of thelaborers'unionlocal I most every worker interviewed as an example of up the time. Each day of delay durt the di l deliberate attempta to create work Fach gash re-cost the utility $600,000 in interest no,dte n the ;nter-rot de I * ""I", ' ' '

  • O'"

presente a weak spot in a high-pressure pipe that omciale said.

      • d

' EI* 8" i l must be carefully ground out and ro611ed, taking e nm was extensive feathubedding, or e'ei n as l as ,g job en 2 time and money. dding, b unions, onen with the consent of Novarro acknowladged that are strikes oc-bifO anf8 tone & Wooster. Novarro said that * "8"" 7 'I'""hed m kus'"8 a ud

  • One inddent inn m nel curred *all over the place...The workers know to prevent strikes, f.tria6ctional disputes often (they) have to be ground out and removed and were resolved by paying two unions to do the charget %e head d de bodermaked 9

repaired? work of one. *lt's called featherbedding," he ae-20 yean, Genge Boylan, was sented to 10 One repair order viewed by Newsday doru-knowledged. EngTn$ho YntraUrs by offe I g mented 15 are strikee cloes t,gether on a single e Su nd workere'gften poor, the state audit - to provide emetent workere eogy in return go, vision was length of pipe. "It's impossibie to do that by acci-noted. interviewed by Newaday dent," e quality control inspector said. agreed. These commenta were typical:"Itwo was paydra. l But Daly, of the steanntters' union, said he never any Eressure to hurry?

  • People stood around drin ng coffoe when they should have No Job Site Agreement i

found it hud to beiiev. that such incidente had j taken place. "Our guys are proud men," he said. t een working, and no one cared? One supervisor Although Ulf0Ps decision to hire an outside j "I' hey love what the do. When they get done, said some workers would report to work at 8 AM construction manspr was a general acknowl. g[ they take pictures o it? with a jus of vodas and orangejule and be drunk edgement that builing a nuclear plant would be B,arkers told Newsday of delibwete slow-within an hour. i me,re comples than building a coal or oil plant, r I downs-including intenuonal jurisdictional die-e Ulf0 and Stone & Webster failed to con-Ulf0 labor relations manager William Fitreib. 5 l putes-to create more work. A few said that low. duct detailed work sampling studies at Shoreham bus Wd h uuhty 6d not immediately pweente 'y productivity during the week meant weekend until 1977, although Ulf0 ometale said they '" g O* %A[djIffen"b h ** Id g a l work on double time, as Ulf0 and Stone & Web-knew labor problems wm delayin the project g,* d star, Shoreham's designer and initial manager of and national studies hadlong war of the effect nuclear plant was going to be substa'ntiveIy dif-l construcuen, tried to maintain the schedule. As of low productivity on such bbs. of last fall,1,IILO employed 600 workwe on Sat. The construction work Force at Shoreham femnt bra building a fossil plant-that we n - ed a whole nee est dcondiuona, he said. %t j urdays at double time, Novarro said-more than peaked in June,1979, with 2,615 craft workers. j $30 an hour apiece, including benente. Today, there are about 1,600 at the plant, which knowledge came later.

  • It was a pattern,,, a basic attitude,"said a. is 90 per cent complete. In addition, there are So, while Shoreham was to be the Srst atomie supervisor of 100 workers. "I guess people aboat 1,000 Ulf0, Stone & Webster and con.

project for most of the union locals involved, the thought the plant would eventually be Aniabad tractor management personnel. nareemente were negotiated between contractore 4 ) and electricity rates would go up anyway? The steam 6tters, who weld and install pipe, and local labor unions and did not allow for the i Worker productivity has been a major prob-comprtae almost half of the work force. There are Peculiar labor diffleulties inherent in the build-g lam at nuejser power plants across the country. alau tronworkers, who erected the structaraj ing of a nuclear power plant. j ln 1973, the Federal Power Commlasion warned steel; carpenters, who built the mo6da for the con. As early as 1966, members of the Atomic En-j that low productivity was the No.1 cause of crete; electrical workers, installing the more than ergy Study Group of the U.S. Labor Department achedule celays. 1,000 miles of electrical wire or caule; boiler. -Continued on Next Page a . L.+ - 1, L*, l * *

  • I' l

J_ - a ~ t no menagement rights clause under abich by In in; abwe at Shorthem, ometale of Lllf0 ' e onld be reguired to work omtime to sped the M. and constmcuan supervisore also acknowled:nl Stone a Webster Ykw President John Ryan that the second steamntter le often paid to do noth. said last fall that labor problema did not have a ing. One such interview was with Joseph Novarro, major impact on the Shoreham plant's cost orj former Shoreham project manspra schedule. But Newed_ay obtained a copy of an Octo. Newsday: When one welder welds, what does bor,1977, report to LIIf0 in which 8 tone & Web-. bla buddy dof eter attributed 10 monthe of delay to the ' Newarret Watchee. boilermakers' dispute alone. Newsday And gota paid? In 1976, Lilfu and Stone & Webetar tried te Novarrot of course. make up lost time by arbedulms two ehtfta But the. Newsdapt Why7 unione refband to work two shifts unless they were . No,arre: Because thoes are the work pectices id double time be the second. N stalemate that have been established to the steamntter in- - s V; Fseted eight montha-at a cost to Lilf0 of dustry, Neweday Why would you stand for this? gyd 8500,000 a day-until August,1977,wben the utt-lity's threat to use non union labor at its planne " Newarros Because it's the only war you can get s IdI0HeSSp Sabot 8p Jamesport nuclear propet, prompted the pipetit. work done in this region of the country in the tore to agree to a send sh ft at Shorehan steamAtter trade. On Feb. 20 this year,0.000 man-hours were lost In another interview, the buddy eystem was I cost p us ac and labor lnespert. at Shoreham when 2,000 work ere walked off the job also discussed with William Imng, a steamntter enre on nuclear projects. An August,1967, report for three hours because a 1.IILO enntractor hired breman supervising 200 people: ' warned that " jurisdictional problems will continue I"'r non unim wwkers to clean heat enchangere - Newsday: Why do you have a buddy system? 6 i to w as a result of the very Auld nature of the with acid as part of pre operational teaung. Imng: It pas negotiated in the contract, i evo ng atomic technol ne greater act. alon... wdl tend to narrow'il$e establishe7dirl. On June 18 of this year,1,675 craft workers Newsdayt What does the second guy do when i struck at 10 AM and stayed out until 3.30 FM the the Aret le artndirist 1 possible overlap,,, between boilermakers and pl. Dort day to protest the presence of two non-un6cn Imnat Nothing. alone betwwn organised crana,,, may lead to Mrkm fnm a pdvete Arm hired to chemically Newsdart Den why have a two man trade? pentters, or between millwrights and machintatay lengt it's a way to employ more workere. I Work stoppape,the study group warned,could closa eil hoes br pump moton en the one, De steamAtters are b far the largest trade at 1' jeopardise the potential envings of nuclear power, 8h*"han N union 1,2W pe pie at Shore-which rested on the fact that uranium was far ' Featherbedding ham-ajmost belf of all craft workero-et the peak i cheaper than fossil fuel and a much smaller part of '. Lllf0 emetals acknowledged that the Shore-of construction. 8teemnttere accounted for one. the total cost of producing electricity. Because they would reguire more stal and concrete, atomic rw. ham propet has suNed Dom a k prevision of third of all craft man-hours en the project-elmost I actors would be more expensare to build and awre the utildy's entract with the lor steamnuen" 11 million. unWho "tweman trade" or " buddy eWen* De e#erta of the buddy system are mmpound-I vulnerable to rising materiale pricos and interest The provtalon requires IJIf0 to hire steamflttere ed at breham, Osornomski said, because it often 8 ' rates if construction dragged. To head offlabor robleme, some mulltles dealt, in teams of two even though about tw+ thirds of a takes an hout to po minutes Aar inspectore to arrtu ' steamfitter's work at Shoreham-welding and aAer a weld la Anished. i with the national headquarters of the treft unions. N resulting Ject egreements or bb site egne, grinding pipe and other equipawan-la a kb for "Meanwhil,e,' he sald, "the two steamatters N *amnttere union uses the term *Are ut a buddy system was not conAned to k s'to kouta nd r a d tw age watcP to darribe the second mlder, maintaining steamfttters. "Itero's another ares that it's not so Management designated ahlfta, length of workday enw eine and degree of supervision, The agm' that he to there to make sure the hot welding good," Novarro ssid, *and that's ta the supervtaton menta applied to all crafta aparks dn't cause a fin. But Arthur 11. Caer. of the manual force-the fonmen have helpers nomakt, project menepr for Courter & Co., the too? h result, he said, was that the project was i One of thoen utultles, Pennsylvente Power & beced to employ "twice na many supervisore* than l (Iping contractor that manages the welders, told.t's a neperum job, and you an paying te pe I 1)ght, la building the two unit Susquehanna pro-Jact started the same time as Shoreham and cost. ang about half the price. Norman Curtis, PF&l,, ple? h steamntters, paid $a.65 an hour in 1978,, Actently tf you do it right," "You theoretically can uns those two peo l andI i vice prnident and head of the Susquehanna pre. am now paid,814)l2. ' * * " = ', " 9FfM*f

  • t W pry ; p, *, +

pet, said there have toen " surprisingly few prob. e 1 a lems with the unions? s j Simuarty, Georrie Power Co. signed a pre;ect \\ W.W esmment he its llatch 2 plant, started about the. +r.- A i emme time as Shoreham and costing a Afth the e I price. Even within the New York metropolitan ans. j with its strong construction craft unions, Consoli. j datal F.dison got e project samment for the 8torm j King Mountain hydroelectrie pro)ert it planned in 4 l the mid 1960s by pt it,in F6tsgtbbons' words, by telling the unions: *1f we don't get it, we ain't ~7 i gonna build it? De project was later abandoned j for other nasons. j According to one highly placed labor source, f 1J1f0 essentially ignnrod a 1973 offer from a l high-ranking eraft union ometal te help negotiate a pb site agreement for Shoreham. i One reason Lilf0 did not prese for such an 1 's i egreament, Fitzgibbone said, la that Stone & Web. j eter, which was to manage the job and deal with s contractore and lahor unions, amoured the utthty J that it could get " bid packagq* in which the con. 8 i e, I tractore would guarantee a Aned fee. f j I

  • We were then relying upon the best advice. 8

'e that Stone and Webster wee giving us

  • Fntrab

==*+ j J E bone aald. "They had the espertena, ht's why .g

  • e

,,,,t '.* 5 we hired thern.* As late as 1973, ahen construction I began in earnest, he enld,"we were sult convinced 1 6 that the bb while larpt than a fossil plant, wee espeble of Iwing built under the local (union) # L~ U -i i agrwments? ' .1 i But federally ordered design changa and the / ether complenium of nuclear construction forced C' thone & bbeter and Litro to abandon the bid. U packap ides, making Bhonham a enet-plus pro. 4 ject. From that putnt, Stone & Webster, the 'I i contractere and the union members all derived ,J l more truwme as the duration of construction ty k stretched And with no agreements te head oN or I, resolve tlwrn, labor disputes began to stretch 64. 10 f i f WOfk Stoppages [. I in the summer of 1975, the boilermakere and l lb pipentters went en strike for als weeks fbe awre l-f pay. Wre was no provision for quick arbitretion. l The 6netallauon of the reactor vessel was delayed from August unul Doromber. l M TI A * , y) n==.o sie a-o., g After they returned to work Aug 25 1975,the ' " " A $horgham W0rker inspect $ Control fod ditvet Which ar9 Deneath th0 reactor .g boilermakere afbeed te work stortame are was ......A....' l o [ { i;,,,,,, p u,, m....... - : ",u " ' 12 esistence er's lang taland So, yea,if that's what le you want to call fenbrbedding, there was no way. q@**,a,$, %75[C7 "f e <

  • d

. we souid bund mmeus sie c~ x - 'j \\ .,,,%l, ,l l ~e e n%,',. f { y'l w* ; R. a Poor Supervision 1 i .s., J'. ! f In other nuclear plant projects, utthtsee est tare g i' s [ Al,g .h 3* l l bete at the start to maintain worker producti ity.d 1 t N eorgia I%wer Co. ometala said ht from the start <m e 4' g' of flatch 3's construcuan in January, le73, they - I required daily reports frora centractore. Workers ,y

  • '3,,.

9." I 'L' f.; 'j $ $ fork M % W M

    • r* r*4uir'd '* **ld
  • r*r'*i" ""*b 'N",'h'*

s A3.'g' 9* a-i por hour, lay a certain amount of pe or wits de a 4 A *i-(aber east As harg af M most op amiser ploeg certain number ofInspections a a variety of oth, 3

, W u

Cid Wa*cWS Wanhovl per er tasha. The utlhty's staff of 300 checked workers'. (e noens) IWomall prognes each hour, seu W. A. Widner, h utility's, =$ f Mare and Locaten %[ 55m Mort N8 M aur. lear etes preesdent Jurtng the construction. Li If they didn't meet the targets, we terminated ~ iE L 1 WPPS$ Unsts 13, Washngton US them," W6dner said.The workde generally got lees \\, nne Wde 2. hes Yort N8 M8 than a wwk to prove themselwe, he sa6d. - si,ver tend. Lawsene 31 8 Ng At Shomham, scenrding to UICO's own Almgo p( Q, 1 t{ Hope Creet 1, hre Jersey til til with the state Publie service Commlamon, hre id wm no weekly milestones br the first 44 years of ' q j) Bes* Vaky !. Penn: Win il7 30 8 full cenetructmei. la December,19M, two monthe Q mm,m-7.=sry:% , ry"*MV lsnenct I. Penrsbane NO - MS aner Ulf0 took over manspment from Stone & t-t A V" ; g* C U l' il5 : Udland 14 f. Weigan !?8 til I*'*r, the utility estahltahed standard welding P /,- % ( rates for var aus jointa. W eampany changed the V,.- ,7,, SeaWoot t lies HampsNre f50 til

  • I,,

lahnt and contractor phileanphy from

  • whet la poa.

'9 "= Ferms! Wegn N3 til nible* to "what is required.' Ilut by that time. CAebMS hl insulded pipse N T 5horeham's enet had risen from $350 millies to y ter$Anstletgaf Wier . +.6 q Mt, idtk elesMe% for constmacuest WW I enete powerident to - m u6 emetals and supervience inter. 'V viewed by Newelay claimed that UlrGe and 4 A, Ptone & Webster's seeming lack of concern shout M mester contamment,macter tury @3steelbene and bieteped sendoneer to cool opent : -) the pace of work trichied down to the work fem if think we have,la time? But when naked whether, eeuse the management asemed wt!!!ng te let it ' Q tweldhestseet Alegemetod emedle%ou$ c workere stretched out the >b, by anid,it was be.. in fact, having to hnre two supervisors was less L,ien M le,mpe le$0eppe toeste.v h emenent than birtng one, No,arre said,*Why don't happen. 'Sult eindestisch was and. : we stay out of that i een't give you a better an. % place la enormous,* eeld one emclat.

  • Pee.

[.i. e.eume went t..iee,. We enen danue. e - peans a da asem n =

  • m J swer Daly said,"Ihe buddy system is part of our ent-Ilr0 or M and W emesa! be an entire ahnft
  • lie p.veftsus$80s) eft see. l.
i e [4. -

lertive bargaining

  • Without it, he added, *We added ht since enatsels at Nhorehara were lanaer N,, M **888 M useeden meide lur seM " 4 would not have agreed to work at Shoreham.,

than at Ulro's Northport ett plant er Conanindat-8E888' 3 N two man trade has been practiced for dec.. ed Edienn's Indian I% tat nuclear plant, onene un- -l ades throushout the New York metropolitan ares ' lou uns htr leu es onsd and generaHy ,eH(eWir y % ) r, , e g t in most other enas of the country, hewever, uull* slower workere te Hhe in, gg eleceptoel Calde / two do not allow it. *Ihe budd stem translatae gjIroo Fitagtbbona esid that

  • human botnge inte escose costa,'said flobert

, general man-l wing what they are, a nuclear plant ren!!y pro. .,,g,g,g g,gg,,,,g,,,,g, eng,g,p, % .. M, elevate e on,, . ~ _, eger of construction for Alabama Power Ce, oWh vida more places for them te goof en la. 'Ihere are $ built Farley 3. We will have none of that

  • featherbedding as e meane of resolving jurtshe. eat. ft's more out in the open."Ulr0 and Biene & Webste AM Dr egnagWesen end operemon Irl a :

k9te team,45Wie,M,. g edomse build.R e - t fleveral Rhoreham werkers who were asked to ( 4 W..., ' tional eleputes at Bhareham. When twe erand dearrthe the project's pace responded wtth the same' N* '" F W g MIM'ided struclWrel steobe ).. claimad the same werk,having both traRa doing Nevarre said, fitene & werd "leteurely? e g Webster enen wound up Wre was never any re to hurry," said Ql pert beams, gidere and piessem to ogpnft ;, , the same thing at the same time.. i It's called ; one. And another: "On e - khe, as long as you . me reesterGesse,De sesogs Reef and emer < featherbeddtag.* kept moving no one cared. At Shoreham, perle b rwulte, Newarre acknowledged, were le*er stand around drinking enfree when they should q ggggg,I{i,, p',4g*g;,n Labefert! Paused eendrete mrried male.,;l' productivity and h6 sher east. Ilut the alternative. have been warhing, and no one cared? he ea64, was a work stop whue ometels tried to John Jamhaen Nierchara penject manager be .'t I ' I iele and $$ inesial Wok not asegned to.d resolve the dispute. Su erutes Novarro added. Drave Ine, the structural concrete and steel enn-F4 efter Ip 4, Q".. g g peur *all the time

  • st Shoreham. lte etted one case tractor, aald. *A senes of urgency... Just didn't L >;

in whkh both the steamfltters' and boilermakers' eslet,.. fm just not used to that' lie said eight. 3' feePF 8entee and after targe eguiP= N unions claimed they had the right to weld the mee. ' crews earning $l26 en hour, not enununs t elve thrweighth.4nch steel *ahleid wall

  • to the in-fits, eRen est around waiting be Stone 4 A%ned pesyt le RIstofef "

e6de of the 135. foot hi h r,ector contalament. webet,, drawines E & W + M I Mosed' M S ing war be disruas6ena, utrO One werker eeld that morning entfee breaks, Instead of st[o and 8tene & beter allewed a *eempnette erew* of which were suppnand te last from e 30 te e 48, son. M# U U0'"I' Y # # both unlone le de the welding, wWh leek thee. etally lasted until 10 Ant. la the eMernnon, he "Oi i non ennds of estra man-heure. eend, some workers were to take brooks f>orn 148 The pesetico even estended to the unloading of to 3 and othere from 3 to 316. 'As a precucal enat. . g Jgggg* W. equipment truched to the e6te One top lang Island ter, home,,r, the breaks went here 1.48 to 3.18 l'M - .# ESIMf9I 80end e9M8 ment 4800 union emelal ea64 it is standard pract6ce for each be euryone? he amid *Ihere wee ne supervlaise

  • 0se eenerge W general poetWig af untan to unload its own matertal and warehouen it that stopped puple from doing thta.*

,, ed, Q' 4 y g 'p;lumbing ter u But et Bhnroham, he said, the Teemarere trucking Arul e supervtant aald *lte thing that per. g( i unlan lealeted that it get the work. "Ple, le mall @ turbed me shout all this to that WILO poo ~1 I er esemed to be around. I enmeumes asw t$le new. m h l bieleAnd ell the unions, utf0 oddad two Teamere le uch e sure iwe betennhere. m beoormakere did the work. with the reliew hat, waiking around the ette, but % senssrusesse end essssong eseus, in-, 1. De Teamsters,at<hed. All gor utrO to appease ther, e,ro ne hb owetinse to eh6ch I eas ealled to P' *eleAnd eftain tegeler systeine, cuen as dei { peld

  • 1he un 6en ometal an64 it was important daarues problems. And, as a supervtant, I would ' [j minosehsere W IWIWee @' # y %, g, hem the Teamstere, eines that union truched much of
  • geoggr,qugg"4y* '

6 the sand and ha,e been failed 6f there wee e pb eneeting

  • s the material to the b4>-4ncludin$d the ernsect g

p2 Marhewits, en electitrian with laral 28 in great be the e.cnent wed is bu M.lvuie, mid *I e a loescal anewer a a problem. Reetafelland even and ed ter and wt 3p Naarre said thailwrm uito Inon cor man-but I he,o to eait abr si is c been to liosien latene pinesequee try on essestal thsete as pequired, s 4 anement er eonst rucuan in september, t en, pione a wetwee,e head artal? 9 C these Mehd h tri aan=.oi & Webster was la charge of melving such disputes; Dub Ine, a steamfttter, sold "There la ne prob. ' pend eastg Gum er gis temples..eser, " 1,IlfD did not get directly invoiced. "We lem with making penple werk here Detting the .P p watched,* Navarre said. Fitssiblene said that hpo,eamftfl.erel *Wo,lded' pipse,; pipe sue. I work, to us la the problem. De engineering euraa St A stone & wet.ter *c= is a cod eher but mid pan is at fauit hero' ( ere and. or, note esemeted.,ein pipse; '. that they were usually unsurreasAslin setthn s. Imhorwe' un6an attorney Dubin eald af his in. cted sprinWor and tre proleuson optome.. risa.,uen.i dispuin wimoui eg-ins w feet er. ni. unione anm no i. en the o mai is inooi. i leadins "Assin, them m the labor ag=menta win,eeble and ruhtng th=, ther re not emns to ! *Teemotoret oetweed meserielto afie and ', si se had is tive withe ritisittwne saut utrO we n ei mesi, sum rate. ver, bw peopi. wiii' wswen eine, landed and unicoded, d .aronouses. w *. <,,,,siane, noident tnd e, d when we eenried this pre. nui nei au producueay proedeme invelnd ou. a i jert we knew what m weth ruin om? per,ieien. P -l Noam, who had nauy latwied such praciire. In addaien ie e,e artin, Noam uid, enme of Wife Lathere! Pul m reindereing steel Date 'fbetherhedding" in a September 1940, interview the bish quality etnialene steel tubtng used in 4,Qebers) te alrongshon senarece irt remeter/ 3 - with Newelay, more recently se

  • 1'here's no waf plent enetruments has been bent, *we think laten.

f.buptge and agter enseuses. ' ' ** ; la the world we were sein 614 flhereharn teenaUy, You ese stand en it.Teu can take e wit 2=ut es=tas a the wer$ toprocume tha,t,werej; _cenusu.4 en N ut rage .'**< V NS' Np!.4dttin.d4Aa.IWiy,, _d a

  • r a

... - ~ ~ ~ " - - ~ - - - - " " " " e .= 7 ~ Idleness, Sabotage a g

,y,

's ty t.. l. /g%, /- -Centinued thien Prweding Pese

  • >}

a '* 8

  • h.

,n, Y '< -) D ~ W; w,/**^ wrench te it,, He workere know bl... if tt's ,'2% [, 4(W*l M t1 bent er nicked er creaasd la come Airin,it has to be replaced.' s "Im going to deny it," said Daly of the Steam-l 3 i flttere ' Fro been asked about sabotage myself. se d ,ey showei aw some broken gauges. It could have been en eartdent' m W *s 1 According to both a worker and a supervisor en (Ant h 4# p," j f; ' .g d the Bharshara project, the unions alan practiced a n. ,, em i,,,e.,. certain amount of *ethoduling eellusion.* For es. l ample, they said,18 Items might be needed to de a W the help of a trene, wears sees protec0ve etteld into piece Ort 100 d reactor veteel certain taan, but the workere roepenable for bring. ing the items (the bull gang) might bring only la items. lore la enttime." Neverre ermftrmed that rework As part e(the 1978 state audit by Dans Allen & Dey would emit the two itema nanded to start en rqwged w,lds was pnerally done se overtime. llamtiten Ine Corporate Management Mervicoe conducted a idoreham producurity study, eluch the jnh, such as the two outande entiers that fit around a pump. *He the es.embly teera otta around No Productivity Studies has never,a,en published.i,,,a,,4 gg,om ei,,.,,euene of.e be i $w a day and weita he bull eeng knows the two no, entlare are no led to start it. 'fhey had la64 out all In 1973, the year that Mi eonstruction tegen salm s et wer k, es well na eenverseuena with shot. l l the p6eree in the shop anyway," h worker sand. et Bhareham, the Federal I%wer Commtesson chara workere 'It eney owy well be ping on," sold Dubta, et, warned vuliues to keep e sharp eye en letar prot > And it bund snet problema flhereham's work. the laburer's local. *lf the supervtsien la poor, as a lems and pmduettvity et ourleer plant eenstrue-ere did 'dirert work"-ectual et productive warh-matter of fact,it probably le gates on.' uen estee4ew wwker productivity had emerged only it 4 per tent e(thMr wornday, w 90 minutes Copies of internal libersham documenta, el> es the leading eeues of erhedule delare et poww out of 7 hours For the Individual ere.a. the por i talmsd by Newalay, ahow that at tinies more than planta, the enmmlaelen metad. But IJtro da mot eent of the day la divert week for bellermakwe and half the welde in more plant areas wwe rejorted as Baance a detatled wwh esspling study at Shore. treewarkers was 18 4; stsamfluers,191; elartri-l substandard. A safety system weld ena take dare ham, until 1977, etena,22 3 carpenters,27 6, and laterwe,33 8 por le do. It involves several inspostions, sometimes Utihues such se Ytrginia Electrie & 1%wer Co. eent. Direct wat was defined as actually doing e )

  • with X.reye, aga6nst a strinent safety ende.-

did detasted work sempling studies as early as task that made the plant muro eneplete-welding For essenple, the minutee of monthir enntree. 1964. At Alabame 1%ww La's Farley $ reactor, or unang a wanch, tir easmple. tors' meetinge show that during the week of April wh6th et a omstruruen prmit eight months be-Fully half as haut detty was wasted in late 8,1978,43 per cent of the welde were rejorted. he bre Shoreham, uttlity ofnetala enteral the seneral starts and early quitting alor.e At the pah of een. strueuen. i h l d inte 1,000 man- '.eure at.n le79.t at trans ate.34,760 p Miewing **n,87 per eent were rejertad During contractar to de work enepling stindles. De ut416-a week.,n hour, or 3478a b the wat of Sept.13.1978 43 per sent of the welde use emand then take steps to lacrease producurity reeann for that, swording to war,a year. A mm)nt 68 9 million had to be raione; Ort.18, Ig7a,84 per eent; blarvh early la the pmjarte. 133,760 .reand Ulfve 27 and April 3 1979 78 per sent. A summary aheet Dut et IJiro, Uh!, then engineering v6co I Fitsstbbona, wea the tabar ogwment. On many shows that of I.g2d weMa,73 per sent er 1.178 preetdent eend. *la the earlier sta.re of the proj when the )4 was in 8 tone and eheter's hands, t th requ,i, red addittenal work. e._. a..e_e.....na._... _.t,_ p-t.,4 d.ye _,. na.,wt,.r.4 r _,-.- _,. n.. .y,,. ~. e_ e. m,.t .e r.a o e,_ e _. ..d -,o. .. y_ _f. _ p - ,d

d..

a_.d -o.4..t. /. s Theft a Major Problem on Shoreham Site ,.d ._h_ _,.ed_rm h_e.e,~rtr.d._me., .i.t s,_.,, _..d._._., en 1 e s.ve _. e, g n.d,. et.~_,,

m. _,t.

_.n. a.. _,.,e e.p...t. . -r,.o.., _,, _ _ t,e_,.m. e,d_-t _,., e t.,.. .e.,e.. o..re.h ere _st.e, _. _d _,. -.,,wer C. r,_ -.__.r_ ,.. et _m r.. e __.._.,.e e.r v ng e_., g m_ et ,n.d,u _te. fred,ty. ee.e e ey eee e .r.. _h_,,._....d. y. em.,.r. rm .,.p.e t ,. _. _. _...,l. ,ng y _ _. e.a,..r...we,y. _ ev _r nv , t_ t d.y. .h.w._t I,p..a,,_.._h di__r _t t.d.,,.t m,_t. o.t e, _.rm e-.. A,,,... se . mnr

e...

A.. e_.

e..,, _- o, __. -e d.ah nv.

w .t d. e- _,. d nt e.t.r.e.m. t _n e tt. el -o- ,,n I ._.,e_a_l.n,4 4l em.,. _,.re. r. g n guye w. _.d,_.,, e,. p.,t_h pa. _ _m._e..l. _.me,_t .,e y_ d _t, ,eao.r d .. ng e.. eut., t..,3 n,._,.c e.no,-._..f m._. et. -.- %ey would one,.-., _,.e. t_. r ,t. g . ht. er. u ...t,1,, g. er, e e (est bettery] inere was virtually sus theft. le the highest grade stuff in the enal escurity to rut theft la May, world It's entirty eyetem pipe Hey lef7-4 mere than four years eRer ):mpt eebles out of them and esti Novarre enid MICO has mad. e I , strong efibrt,to turb then. De enm. theni en th. stdo

  • know what min. shaft ll ersnee,fran full eenetruetten,starled RefereWhale Newarm dearrthed authinet.

pony has ine mi.heitsises and nr. It had numbers en it And you now then, *l could mal out with any. leus area,a of th plant. As th. )A ehat? Ouyeenhiil4 automoldi. re. th6pg I seuld estry under st; tres.* denta se "provelent en large enn. moves to, ward compteuen. construe. e-i pair shape end sentrattare.' ene worker an64 etructica enes fue snatter where reis uen wor ore have less.reses le Re. 1 9 De worker declined to be siamed, Regular snarthee altrus ke leaving p* offletale of other mulattee ea64 h but th. thefta h. deartiled were een. Ith_ ham were started only after such prehlems were almost nonesia. lahad arest I Armed by Joseph Neverre, until em utto tenk _r mananment of th. ' t.nt et their remeter ates. Fitsebhana, h.e_r, said *lt's el. p-rently Ulftre Bharsharn pec)act prnJact f>cre Stone & Webster. ita er. John Jones, senter vice pewident enet 6mpr.maibl.* to lastatute rtgne. be eeneeructton et Alohama ISewer eue eerurity erstems late in e pe,, manager and new Ulft/s see6stant ehlteet. engineer. In Meptemberg such es nearehang indiv6 dual lene I to the bnerd theirman, who sria6m. lef t. flefore that. *emeurity stunk Ca. whaos parl.y 3 toedar ese 86 send,.one union shal. *Ouys with tenaed shnulthe enme tim.se Nharm basse. And enn with the eneurity ta6ned, however. that auch pract6:ee pte up tr ham, and,'W. dnd hav. mune theRe improvemente that have been me te plate al,ueba p in and out of th. ero sammen on ymjseta day leeg I could have le the early days Our earurtly pee. et ftherehem. theA has eununa 4 j Wlf0 V6te Pree6 dent lie Frol. 16eher easd,*% eft le a me)nt pnet.fn pulled in and out with anything

  • pl. eut it e# mid. We put a bunch of werhere say, An esemple, he end, were *ety.

pseyle le jail.' John JeaAssn. prnjert manager e,n sillarte ennetrurtlen estee Bhare.am. tennq longer tia durst6ent sad elimtere,* 140 pound open.le of & w64tlam F be Dreve in.. the structuret euel bor relauen ete(%nna, Ulf0's la. Ihnroh_ idenun<eus. _e on$ anmehow thin,enet director, send the enm. eentratter, has larpt menos uien a large pechtern inch tensile etmel table trith a snuter, ny dW.et ratvire workers te e.rt that this le all en j h,erem. coo in b erem repeud.had. " etterhed to the outands of buildinge Novarre said 1,RCO utro.and uuu la,.e big hara et istu,w.eimeo n,ey ie _h may. heen ut pict_e,ere tarrying etily th. eft us e, ens ' pienty ai ther e_ nien.i unut lere. nefore

  • dittBartpItentend t wo ineur-ein_ ham.nopr7less, he e.ld,, mLleleg le4 ord rlglit
  • b.,o4M l g

then. ore $ war bf snojist equipmen g y, -- ~ 1 ') .. e. ., ~..,ere.... ....w. horn the gate in, the meanume, they have en-that mnetturtaan management soubilah backup at other reactors, such ea Indian Poent. but that rhanged ll.ett brsas for vertous tools or equipment work frir crews se they would have sonwthing to de they wese manced d&rently "Nro la e genwal Courter's Cearnomakt noted that Indian Punt af Aeld probleme denloped, eitmanete "estseenve" chmata en a yab

  • easd one top union ometal *Ma.

workere "brammed 6n* before the a AM wwkday ofb breaks, and assage the nest day's work to the chanes bussing, grtndere rotag You can feel it as But at Shoreham, the workday begon at the aflernoon to cut use waaung in the morning for amn as you p onto the >b mte Shoreham wea plant gate, when 3,000 werkwe lined up at the assignmente diffwent Thnge moved lateurely People dde't luthe of their trade Worhere eeld it enen tak 30 in a enmportaun with twe other unnamed nucle-care

  • m6autes for the men to airin et the6r p.b stee At ar pressete la the Beae Allen audit, IJ1f0 had the N emetal easd he favore nuclear power "but

) the end of b workday, the enciphng Arm easd, it least amount of direet wwk of each raapw eraA. la ;wojerta hke Nhureham sin nuclear energy a bad l was hard for h er.anagement ti detect people who general, Shoreham workere did only half to two-name

  • He charged, "Ulf0 amid in publ6: that it left early eine quatues umee em staggered us-uurde as mur.h duert work se their : [ W wanted the plant done, but h enmpany dad not tween 3 30 and 4 30 PM N Aru sahiloesse been elsewhwe manage h plant toward compleuan."

quktunp early ought he weres than Indireted be-Daly of the StaemSttere easd. *My people are cause *it herame mero dameult to Sad penple late notluan en thne PA If they're standaag there, ,,3,,,. state audit said IJIf0 muld improve the N direct work to 30 per met. Aince 1977, la the dey

  • they have n instruemt to stand there Nt IJ1f0 has taken nummus maps to improve pre Among uw werhere it em.ld And, torporate is ne fault dielaw Tb a 6e an engtasertas defwt s' duruvity and erhedul6ng, includ ng anme of the Managenwnt Nerviese said, "farge groupe of men a raanagwtal prehdem
  • state audWe commewruhuono lu amend ehtA has wwo ehmernd eungvessung by vartcue derways Charles (Bud) Flaher, business manager of wg riug%na mM, hmuse "W we had appesatmately 10 to 18 munutes prter to each gust. Electriciana tare) 28 eald, *! truly beheve that the

% g,,,y ggg,,,, uag time leral 28 electrtriae le the most productive electri-M ruulung la a le d emW

  • llut the biggest hertien of the day--41 a per etan to this nauom.* Aaked how that could be ree-eent-was ennaumed in valung, the study found. eartled with Rhareham's prediactivity remrd, I,,I'",,8

'"[ Workers were opendar.g abmat totes na much time Flaher easd, *1 sit here without an answer Prob-h e W dady nesting-&w drewtage, materte ably the best one to enawer that la LJ1f0 eentrerter eruvity lla easd IJ1f0 6e alas keeping other workere-se they wm in,le, 6ywe and direct et pendue-that Novarre, 'oe, dtaputed the oudet Andange, "* P ***d "I*' P"*** **""

    • 4 IA"8 """*

I use wnek le the 1974 etata audit, lho Allen & eaying, *1 parenna ly feel that thnee types of stud-llamniten Ine, este the turnaround urne Aw varteus 6es don't really tell the shele story

  • Acknowlmig-(I""3 g

sonstruruen &n, aments was escensive-*Aen $n 6ng that the mothed used by llune Allen saa e to 10 days standard audsung kul", he added, *It'e e very niRy all lehne prnduruvity has naen only shshtly, han the Ntne Mile 3 audit termed

  • inadequate,that Il 4 to 23 per sent, ettli well balew the level A leal audit a the upstate Nine Mile 3 pro-thing to put 6n a report and try to make compart.

No-lert-4e which both IJ1f0 and stone & Webster eme liut I have 4tfhruity wtth the prere.a itself

  • e IJ140 has been unable to adn handa' are also invoind-eharerteriand N6ne Male To Neurtheless, a rerent study en labor use pre.

"""[aber problema, math as strikse and he worker wasung time sa

  • unacceptable
  • 14 wes Il-sented to the Atosale ladustrial Forusa, the nuclear mental 13 eent, only a quarter that of Mhoreham's N industry's trede saww6at6en, usee many d h twe> man steamfitter trade Nat6enally, many een-e it, by Thandere lierry & Aaentates ameul-methods that the state audat used at 8hmeham. struetsen unions ta lD70 e6sned the murteer stab 616-tante, an64 enrossive watung was "sa indnesteen of N study, done by the Tenneesse Valley Auth,,,

setten agreement, which pmvideo Air >b esta Lnadaq sete sheduling

  • lty, eiend the same yte chart showtag the simitet enntracta et nuclear sites But Nhereham to betag N 1974 produeuvity stud so6d that unos enrk eruvtues, such as 46rert work, welung and Anlehad under endittena that wouM he e darede manastag h erena et h (21[o erniert needed late starteerly gult Rut dirert wwk at TV A's nu.

end by the une 10preham reachee its 1943 target "better planning, erhedul6ng and supervis6en

  • elear planta une listed sa afi i per sont-ebuut 80 d munmervtal oloreuen Corporate Management Servisee nutal, ihr esam-per rent higher than Mhereham Novem added. hs,went *When you get clase pie, that 41rert warb darlaned sharply aRar 9 30 N repnet called work esepitag "reammably to the end, ev bndy realtaes We going to end, and l'M untal quatung time A remedy wwuld be enero erwureta Aw use in comparing men power ute!!aa. uw I.

to get 64 Anlehad superv6eten toward the end of eash sh1A. the study unn with othere and hetwenn pre) sets

  • N TV A a en ed last WI tf uw emetturunn fee sa6d-ofnetela ante the sampling techn6guae wm dent. had "'hed that paint yet, Neverre ee64, 'No, if When the study began, Cerparete Management oping aRer eensulting with other utAlues don't think we are there yet*

flervices sold, "there wee little seneern by the N fbreham asepling resulta ere the puerest Asked agasa, late last month, Neverre esid, teena when they were deerved weiung flut of goes in 64 TVA stadtse of (18 nuclear pu,,, "Yes, sortatal Our the last year we have reduced uenumbw werhere en the A mee, e nintently when a study abastver appeared, *the trena wouM pre) sets TVA managerment chief Marson Ray sold flew de eut back a work fus' e get rte dietnarea if to a group or try to look like they were se et,.dy resulte. ore not a matter of "restonal d the drogs ret You get rid of the guys who are ening anneth6ag

  • N Aria added that et least ine-sharsetortaura ner un6en wreas non-unnen lg l'oublemaam Area. N ymd guye you k p ul ually, "thm appeared te be a leek d superviseen mains / has te de with how well b p 6e mus-um last."

in uw new * . aged N study n -- ' ". amens ether thlage, some Rherehase wwkm said Gwy had wwked Tomorroert The bgulators i' ? h' .I s,, s. .'t ' ' i N ' ' ' ' W- .T'"~.> 's% y,, w,,., .4 7.. y\\{ 3.. 4 o m y 4,..%

  • s.

A. i. y, r v oi,i (\\ y. /* e - J. 7g + - M q,,< .M... 4', o.w 3 n w, p ; m,44 % gga &;,pq;p %a - t y 4 eeM. e. fa eM 3 - pw. g. 9 wS-1 ~ ~ 4 L. u. 4 , O, U, y' u/a, J.,, - o i nhy ~ hyte - d, y t ~ a )). s ~

I) '..

, S" f %y p&g 4,?. O4, r y e , s, kg ia ms t 1 v Is g, , h J-_' at w q d6 A Jy <o ., n. i 4 ( a._., a t, 6 t c* -Jef-c r g. 1. .k.#, l1 .,,3.., 4 a j i#' 4 g,, q 'ap_ s.- gy 7 s s g b + p. p I Y-J ( [7 g m s s n.n ;

gw. J.%,y,e.

',.r ,p n. ^ 5 . t s

s "

q y. ; M..,,.,',(.t ' %m O: ~ f 7 ' g ' f.,g ^ p I. ~ <.e. f c.. -.c [ b . j, k W. j + [ q [ 4, _* / '.h ' ' * '.4 F, 7 m,t a.'a..m 1

  • =,m'.

- y il 8-gp - 'g. i 1 hn 4 Jw g e p 4 ees s pegn

  • w g

.y... e.eeme s mee neon N Wursore starst emms e intvie W wires and sat *g in a tiuikseg on the storeham one 5 .. ~ -. ~ '~ I . ' 5, I.,, f bl,. d T f,,. '. : T" J't,. I,C\\ 8 e . S HAM: i e .m ......s c I L, c .,, n, s

  • PART FOUR,

7.' j .. s The Regulators' ~ ~ ~ Ever-Changing. Rules t l Ilp Bluart Diamond taland acetdent. As a ruult of that accident, laimretery, le that Centem and the statee han I wissent merenmens wrnu Ulf0 talay la making 837 millian in chance at shirked their nepanaability by leaving to reguta. i N Tillt huwele of the Shoreham reactor le a 8horeham, many of wh6ch wwe advocated by es. tore the task of chansens screptable safety levels, f*

  • ennerete lasement the ease of a astua prta ywe sga ehelese which the study termed 'surial rather Sint* 1878. Ulf0 has been ha w6th shout bn "tacAn6 cal?

i Anchered wwucally in thse si at sevwn are 100 meaanse openaended pipes that begin 840 daign questions f>nm the federal regulatory De regulatere how made decisions by trial three feet off the done and carend out of eightlate e'8ff. usually retutrtng detailed analysis. A ennn. and error, with the eaurta etten revueing them, i the upper reaches of the reactar buddans denual ppnft from Stane & Westet nMad, Tv.* the study eaW, adding, "The moult la e pubhe. I j Two pero ago, workus had to rip out the bot, ory area og the plant had to be justilled anew" be. health protection systern that le incenatetant, un. tem eis feet of enme of those p6 pee and change,, pvernment regulatore coordinated, eestly and undemorretie? Peter firedford, one of the Nuclear Rerulatory, De evolutton d the nuclear regulatory pro. t nwetafy dosene of maasen eteel anchors that held Commiseson's Ave eemmissannere. enne.mbi that eene e&cted Ulf(Je storehare project in sent* ~ then New metal-tens of it as then weldal l late place And throughout the budding around the esmy's armam of petacuen to in " Rands. al mayw waye-64 hundrale d steel anchore and supports wet, sental disarray

  • O The federal pternment and the nuclear in.

j l re,placed er etrengthened. The maann, amording to e twent study at the dustry were slow to study safety problems that het messive task will oest the lang latend Massachuastte Insutute d Tahmology Energy latet became potentially danprous et ecatly. Dey permitted construction d a faulty teactor Lishund Ce, and ultamately its natomero, 8100 ......., * *,

  • design, the General Electite Mant it, the Bret of '

tatham The ehene sea entered by the U 8 Nucleat whleh was ordered by Ulf0 be shorehen g' 9 Ulf0 trurigly belleved that Mimreham .U, L Regulatory t'emalasien to strengthen a hev safe. ',, ',,,, ,,. f, a' paauen Bfrom tegulatione drafted onet its op. i was enom t eyetare anar regulators euncluded in 1973 that L,ehaus e,ui,me..a. no m ig o,mugh ie e -mniaion pw-i wee -,ina wth stand the enormnue brtoe created by a rene. ~ ' ~ in May,196A, e etste oudst noted. IJhe many utd. 6tnea, il enewed federal regulat6ans "es stable' i tot a<eldent. Whde larpt than mnet, this thenge was but pidelinee,' the aud64 stened When H learned otherwise, the result wee"e6snificant elappare in l one of hundreda ordered in the middle of construe, engtawing e=ngieuen end utenen o.narw. ' i u n 6 reI.vietare.he e,pm.d sh.r. haws d sign, la , deewed w chan, viet, reci,, 9 When regulatary ebansu were made, fed. l uen eae es==h. I esenta I In all 1.!!f0 emelele any, hundrais of mal, eral emetale made ne agertal e%rt to nottfy uttit r 16ane of dellere of Blereham e 814e bduun emet. Hee. And not unut aner nree Mde Island an i stem ftma replatary revne6en. In a 1977 report te 1819 did Ulfo easign an eenplays fW1 time se . the utday, fliens & Webster, shareham's ereht. menner such ehance. "We thought the industry tecteertneet, called Ilheveham 'en unfortunate 4, wee amart enough to know that the new remstre. menta oppited to Seen,* Dentan se64 *We es. eaarnple of ehearing sewund rulee and ertterta.e s g'

  • e M ','4 eumed they would keep up wil.h our moving tar.

. e,waiien o u.e ies, neo,im,yiem.mtco - ie.c.,,..n 9.y %. %.. "." i la rebuttal, liardd Danten, eh6ef of reerter > ci-N ~. O no,e,e.,, en,1,enn,e,,t.ee u,,re,tain eten. enand i. n.,eni ,,,e k--QQ ""* *' .., M and ehen fiartavaly thanging,largelt due to up. e l j lague Phwehant and enme other nuclear pre. %, J, a.. sat dated t=hnolost and unA,reemen events, such as N " * "." -

  • = nroe mde waa ninreleto,eimaoisoa regwa.

l Ilonton send: 'Fev the vuilttee who de thett

  • aa hee' * 'hae d rea's- %;.p.
d. righi. r>t tho uu'ltues she don't de thett pdse. w.*llf" $ y W,?
  • g) tory guldel6ase were rettand. '

i delay ye 1 la f "*'d*"d ** O'

  • I*0*I '*[**'" '8"I "D' U***'*I A' tar,,ese hea heen ~

r""*

  • d NN IkN i

"**d'I 0*

  • O* *8**'

%.a N '"""""8 ['*(*'h' i"*'8'"" ve of ran.' 'O *An' i I, %

  • t esterefr-eften bittatty-ertt6etsed f>wn within 1

I sad enthamt u. undity induary u dispianted of. h u ten tilosteel and listag on talviel eenreroe ebue ; $"***8henegeO ,g',;,',,, g,,','g,g,[,p t y pt j

  • .I,.g,g., '"" >

Aeneng fa,ut utiut6n,, studied, the am[o '8""'"8 ***F **** '"" l replatere she to ~ estre gg, gg Ne esbtp peltelle >dera M g,,ug,g,% g p,,g 4,,gg, i step orderna ehan et wh6eh enee are mero a !**';C, s.'esel*s'!..*.". s"t"""'"' eta"E."Jfti h'ue aa * = was an we wea a ~ s. riea

  • u i' *a wa o wa d a ha et le70s u.u 4:aart, aie dia,w.hwk., ui. mi4 teroa

-et i,wie no, in uet '"""'F"***"d7 sia" ra6*a .u Se In 1918 a bderal sted; noted that new rose. i s eenter of the eewnn6e wnee of n seleet pew

  • ten sentalnal ese umee se much eenetete and i

Whde strengt, prannung norteer power, the steel se 6dentwelir asend unna had in imo, due te l Nwtese Reguteteer remmission has topoetmur - ettletet retulations flut ehue emetale se64 the roerted le pmbleme by ordering desse thence eette enstertal ese naaled to ensure edatuate thet hevo ertrpled uul6tf ebris te build and epe. e fett, ther let the oldw-presumably lose safe i ole roertate Al pherchem, bdetal emetale er. Plante-eenunue le oporsie, l d.ered Ulf0 to redesign it,s pipe euptoirts to w6th. in Os.,r,,e, net,,, i sa nat,,,, we,e de. i e aa en es,*tuate - dmee,,, co oru than ne otronym tr,mov en remed in Sie em e g e4 ee,4 nural unite,the first tesinning et.c. j giew-9'10 timee snare peerM than ne tremer .et.n in lyra and the e.,end ln Itle ha the ,t e.penen,e o, ten isies on m it ne,i,. eusende d,ife eu,p,,e in es,,,,,4,,n,t I endlThtte and rela chamene seat $35 million- ,,re ordered to ee Iwtre es large se thnee in Ontt l At the esmo 46me, he**we, bderal emetale s.e , me e

1. " Nee these planta are ens 6 4 fenm eeth other, l

Heee eenet twnuqpi n efi Larg tesamt arnhd, and is,4 em t.pereung. sold W A. Widner, ehe [ dn.1 met dettae a erotem to sampanaste be me e ope O,gie pa,, Co.'s, tee pr,e6 dent be one. h6ad of bisman erver the4 led to the Dese ude mener e toen He ptert to teasere enneerwer, e " " " * ~ 1 l i, g 4, l jr. m o e 7 <.; c 'i _r N.<,., e,% e.... .,w -e. struction when the planta were built. *lt says safety has teen desertbed by the Institute of Elee. struction of nuclear renners rather than ensuring esmething about the eyetem... It het donea's ancel and Electronica Eastneers, which esta stan-their safety.

  • T,* p.,' g,'-

~

  • M But Dentea counters that ths eandshop of aag; J darla for power planta, as *e thestmented eartes of r p;, -

make any sense? ' wee and cou rmovee that tavelves se amor " on of agencies,comrnittees, politi..' gOW 4ft g7 , + lag plante 'eheuld not keep us hem heproving the, pheus agga l N AECdnd sely whatlt was chartered to l d e espect today's care to be safer them,.siane, power ampmes. and speciel4ntamt t ' future. P .

  • M.,dow'".

.. e. c. un his la4 sharp weems to nauuna lie Me prope, uld NMC Om- . At JiherebemAdl40 wee ordered tedenen aty, rance, when a MMutmo MM@de la 1964es,,,er predesdN ndse p on to e jg t ' s,% t ,,,q euTtMreacters, a$n 1 d.3 h,'

  • % g j, Q *,8f'"8 88 f

ealy the a eies one hl d

  • entside safety pand, anhanal and state enetro*" line pace, one a week Ibr the rest of the opntury.

ed fWm e burnesse in this area and according to mental egent and M'e' "W" To Juauty its ecuana, howe,w, the AEC had to IJILO high enou h to coww all the buildsage on the huth.tihare ok fluffolk. De mulity origineup ?breakweiw ie woataa +fo.4 waves.'d--a iar'~t* w aa-

  • f*lant he E& Cenn Guard mahm m the eenvince Itaelf "that the *2",ipment was se fuel-f w aomin8ba - i mauy h
n. m t's arding to John Kemeny, who he5a ed the i

dos,ned 4 j al Aviation A&senastrates certines the to k besch eand from washing inte 8horeham's c i intaEeenaland blockingthe now ofennling =eter. height. N National Martne Flahertoe ic* Preeldent's commlee6an en Three Mile taland. the plant, no E&Meracles willeuNet here Crtuce who warned of problems, were *ehunted e la to. me se m ne " to the reactor. N redeman met $750 004 ues hpartnwnt anWe* w treated

  • man w less the wa Tar Baby sol ed di t 20 feet dee 1700 feet long ePProves the ehlpment of nuclear westee hem the dealt with Brer Rabbit," Bradford said.bsually,he,g

' *nd 60 f nd Bill 8 twt to "

  • to i

factlity. A arere of other agonrise leeue perm 6ta la enld, the AEC stas and the utilitsee would join in 2 i ef 60 f i e all. Shoreham had to pt 100 perinits, oppnateg critics' concerns, i Many stalities any they go along with such Twelve enngreestonal committese and 11 sub-But taeues raiand by erttice would later haunt thangw only berause if they don't the pwrnment committese debate nuclear pokey and are deluged both regulatare and uuliues. won't give them an o l6 cense "they hold a with writtenpnd oral statementa bom hundrede of One wu the emwenty core enoting system, or cfub our your head,prou ins Joseph No'er". so labbras smupe tw and againd nuclear pow"r. ECC& Beginning la 1966, physictata ertucal of the I.Ilf0's projort manager it much of shoreham's And virtually all the onetee have their own nuclea AEC said there was inaumcient data to determine sonstruruen. *We r, spend na e lot of money la,,gulatory programa, which enee include more whood tbstem would work. Shanham opponentas charge if the e improvements that the NRC has mandated,.. than one opnry. but I don't think frorn a cost-henent point of, view h ease of the Raabronk, N il, reactor la eRan,hether the eyetem could be considered ente if it that they really add a smet deal to enfety. etted as an esemple of the regulatory mass. D* had newr been tested, eacept by AEC eomputer (Juhty officiels, neung that they build nuclear tween March 1975,and August 1978.the plant's gudin. reactore le eave money, complans that the regula. permit was approved by the U h Emetronmental gloth Litto snel the AEC esid the charree j tory systern threatens to wipe out the envinge rTotection Agency and by the NitC, revoked by the were unfounded. *We have confidence that the j EPA and by the NRC, approved by the EPA, eP ECCS will wwk,* eald har Stelle, now Denton's J They wonder whether the changee are warranted.

  • I think the enet eftertinness of many of the regu-Proved by the NitC, revoked by the courta, revoked' easistant, en Jan. 19.1971 lauona le Just barely above sere," esys John Jones, by the NltC, approwd by the EPA and opproved bF llowevw, in an April 7,1971, test on a non-een6er stee mdent of Alabama Power Ca the NILC. At noe times the ortginal prWorted pries, nucient erele antel in Idaho, the eyetem fa6 led-He store any that every federal change la the plant to new be og built.

steem prosaure keg the emerency emdtng weter reviewed a depth by several panele of esperta. If At the senter to the Nuclear Regulatory Com. from ine reactor. me implicatione were etasser. 8 the change to ived to measurably increeas mission, eueressor to the Atemte ICnergy Commte. (ng Opwating plante shut down Ibr several weeks afett, il 68

  • red.

e6on, ehkh wea diahanded by Congrees la 1978 ,( reenalyssa A lbw added equipment For 8 bore va'. ut the eyetea charged with ooeuring mustear, beesuse its emphae6s wee se pronoung the een* bam, it meant more heartnge and delay. p The Shoreham reactor design wee equated to i 9 meet the new regulatione. A month later, A. I'hil. t hp Bray, a top offletal for General Electrie, which l . ' pnesibillt that enme reallife phenomenos son. denloped the dwign, wee asked tf there was any i Y terning e ECCS might not have been taken late t l , i. i D esecunt. *No, ett, We tuob them all into arvount * '-I Iteellife proved him wrong On March 24,1979, 'l MM operatore et Three Mile Island shut off the omw-F~ I . e * -p" g pney enoting eyetem because they mier,ed their ... e ' '* " l 1 l - - -w m-- Instrumente a came of humaa error that resulted la

    • ~

am M inuch of the damage. r The teeve of bumen errw bed eles been teleed [l tir years by ertuce, but not headed sumetently by i

alEBP, regulators.

l seasoneg ' la 1974 three formw 0 E. engtnwre warted 2 l ,i gese Congmes that human errar *bes arrteusly Jenper. terouse raredurse 1 gg diend plant and publ6e safety,*both ine equete. A N iAA8r'deEown and operater train 6ng were J ^ n month later NMC chairinan W6them Andere anun. ,d ^ '~ - tered that atomie plante prev 6ded *e large sistrin 4 5td 1 I l of anfet r 6,r pnesihla human prvnt? Itut the engb i b neere' ,976 trtuelems were nearly 6denus48 te g, gg .theos er studies eher %ree Mile taland. D, gag g,ggyy, De NitC ordered numereue changee le minb mise human weer ener Three Ele taland, includ-i - - = ~ - = 9 - -- r u Ing redesigning sentrol rooma %nes thana.e, i WFf;. jr-F W WWb MbMb suggested eere serher b erture, have edded mib 8 liene of d lere le Bhare m'0 Peks. > y temp 9teminplassedleptfute6fhoefianget ba 4* ' Tgg/, A / N j 1 ,d ' 4 * ' 4, @m$ ge b E.80stMaameten M.we The Containment. 'g tweases I Ano pee etsamste and e a v oef.fAugueuf.aspeeveusMi.M.ooest%m,,,, w,m;. et,n,1.s.,i.a d bet.ne WWW semest in $s*",8,.* */,,,,,,*,h*",',$37,e 0'e1",e'd."$"* f , m..w m w and - i w g e ~ ~ + rr m Ec alme esse ie e.r n t .e,= w w . mms =e w w =t. w,in e i,i.aun, 4 su,,eund. u ea., see. s r e. tense u.apre.seme.au.sesses.sr ww.oesn3. asuaq een and u.nene mesmJoetwide.in en errideni m i esmeemere auf resours ,,o. es,e.se e,.,p,.as = m is divid.d i.,t. o,pe,..asiews,i.vois.mnea*A,h, .e,es. e. e m sin ient d in fut i. e, I e .e .es. en n te,s. A,seneofheues r,pe ne mutr - n.in

  • N iSIw*Y
  • in a mer, sered it.,.e le,I4TheY,enw*e$.t 2**

"a #'$n r and samu to 7e'i$e _,,,,,,,,,,,,,,,,,,n as,,,, age,,,,,,,, 3 w.ieAlf, esse,sesuswe woua e e TOTAL costi oss menee., - e an,reenin pre.ou,o b wndwuns eurerh.eied esiedad on wenn end on gdynions. 8deser w ceam Nm the rewter sad the drywe64 l ehensee were noenne$ede, pisse eruf evey-Sdred 69M M PetM000 wh wo** '**,f water enW le,. ' inte W welwou, to to rendensed by m watee pod edpsiprnert had le De fateWI 8884nsE8**est only 4 eense W l.1100 and 10 abr U fl tennhties sat fWeral 4 'ht the essessumere, led In Wie spee temeter> # tehe ower befn De 3 eland a permies to thte Mark 11 *yreasure out.preestan* s ,i hdtding. Seite a lesse h one e,pe espuld ferop, w gitehe tenGL b 4+ 1, 'f' ? yJ1 erstem hen,in earlf III$.reseerthere a>=nd me-5 \\ erede. 923r e. fee,n P$e StSpoft bI9.vTAL OWII 000 O,, 5 l 'S g,r P,robleme enmbinat6ene of 6,rree much higher b s c w 1 4 e y~ .- w e, o.,e,ted en u wet en wwe e,,4 en e,t.i,. MMk i Med 5 ONM D en,sNM N #W P" ebent One $,ete, celled

  • peed see h * $nducted that s..

.... i. e s ' l t e o < t e s e s s e,s 9m . w.se-A q,s aalli! V U'.7* M W P 4 4. ust w ds. d @ *Llf:*l.*e Nes} reeg ..e' - ~ _. K -Continued from Preceding Page director " Steve's idea to Inn pre surs suppression December, 1972, epparently completed in the the force of reactor steem pressure ensahing down contcinment schemes is an at*inctive one. spring of 1978, changed in 1976 and completed in into the wetwsil could launch the 103,0;yJgallon However, the acceptance of presure suppression 1977 ester pool several feet into the ear containments is Armly orntadded in the con. N change took anot.her 680,000 man-hours, Mapr changes wm needed. Walla, pipes and ventional wtedom. Reversal of t.his hallowed pohey, Stone & Webster aand. Massive collars that look other eqinpment had to be much stronger-not particularly at this time, could well be h end or hke giant coiled springs had to be added around only in the containment, but in the entare reactor nuclear power. It would... genmity create more the pipes to keep them in place if they broke. The building, since a forte in one area would reverber. turmoil than I can stand thinking about" changes involved 1,000 pipe supports and re. ate. Stone & Webster had to reenalyse 3,000 pipe in 1973,0 E.'s own study, the Reed Report, also straints. A het of design changes obtained by supporta and change the design-or modify in the identined potential safety problems with pressure Newsday earmarka $18 2 milhon for this change. 1 neld--342, some of which wm the size of closeta. suppression, according to Dale Bndenbaugh, then In 1971 and again in 1976, federal regulators Some supporta incrammed in saae by 50 per cent, a management engmeer ibt G E. and now a promb changed their enterie for earthquake stremece re-Stone & Webster said in a recent report to Lilf0 nent consultant to anti-nuclear groupe quinag additional analysis and design. 'Ihn had a All the raceways for electncal cable had te be rean-Today, the three most expensive U.S. reactor major enact on supporta ihr electrical cables that alysed projerta, all under construction, have Mark Il mn-run on raceways t.nroughout the plant hke roller And tJus effort had to be done while LIILO was tammente Shoreham, Nine Mile 2 upstata, and coaster tracks N supports initially took 30 man-building breharn and the federal government Unita 1-3 of the Washington Public Power Supply utes each to design. N redesign took up to 30 was continuing its analysis. N requirements are Systern in the Pacine Northweet, bours each-40 umas longer, Stone & Webster sull not Anal Uuhties in many casse had to gueen. N naal spectncatione for the Mark II are en. amid. Total. 100,000 man-hours. In 1979, half of the 200 Mtone a Webster engineers pected within three montha. Farouk Eltawila, the Electrical equipment such as switchu and in Doeten assigned to Shoreham worked hill time NJIC's technical director for the Mark 11 program, trenaformers had to be individually tested by plac. g on the Mark li program, Novarro said 200,000 asad his egency will not permit any Mark Il planta ing them on mechanical shaken tables for a few man-hours. Nt meant they could not devote their to open until the utilities meet the Anal entana. bours to test durabihty owltch is a switch time to fintahing the project. Novarro said the re. Had broham been finlahed in 1976, it could not One that 0 E. or Westinghouse has made for 50 design alone cost $20 million, the total change, have opened, he said. ~! hat's the way we do bus. years," Novarro said. He emed the additional tests $100 million name," he said. and analysis cost up te 10 times more than the "I felt hke th cut the lege out from under us,' actual equipment. In most cases, the on nel Nourro amid all felt kmd of cheated." equipment was ibund to be saeptable, he ed. Nro em no warranties from 'l E. for the new ,We Got Smarter' uore operaung uponence meant new prob. design, eu the utilitsee and their e,1stomers are Federal attenuon to reactor anfqty intensified lema footing the bill Unhke the Mark., which was es-in 1966, the year breham was announed and in 1975, a $100'milhon Are at the Browns Fer. tenaswely tested and operated, the Mark !! was the ear amat of the AEC's baale regulauone were ry reactor in Alabama damaged key electrical eye-only a concept It was up to each utility and lta esta hahed. N attention stammed from better tems and led to e requirement for two separata architect-engineer to come up with a sporine de-technology wirtng routes. Nt change cost more than 810 mil-sign that would meet federal anfety spectAcadens. Sophist 6cated measurements of equipment lion at breham N Mark 11 was cheaper to buy than the Mark 1. strees, developed in the space' program, were ap-In 1979, the Nee Mile faland accident meant Neverro said the utahties did not think the plied to reactors N AEC technical staff jumped another set of mapr changes, as Litf0 was Mark Il forces would be different fham the Mark I hm 400 to 1,200 hetween 1966 and 1976, when Snishms the change.s ordered during the 1970s " Eve y thought that everything waa done,* h* the AEC became the NRC. Few of the changes, however, stem from emid at all the testa supported the desige, and "We hired new guelogista, estamologtets and changee in the basic nuclear regulations, which everyone was happy." other nperta," Denton recalled "Each would say, have been relauvely stable for two decades. Those Rut the entire concept of preneure suppreesian *We don't have enough information on my special-regulauons governing nuclear plant construction wee questioned by federal omcial even before ty ' Nuclear pnwer was a young, espanding indus-are in part 60 of Title 10, Code of Federal Regula. breham got its construction permit Documente try and a whole plethore of new laeuse was raised uon. An appendia lista 64 general design entena obtamed by Newsday reveal that on bpt 27, that we never thought about before We got to which au nuclear reactore must adhere Exam-1972-eeven months before 8hereham's permit smarter Things suddenly espanded all across the ple-Nuclear power planta must be built to with-was granted, AEC safety esport Mtephen Hanauer board" stand tornadas, flamla, earthquakaa, burrtcanes, sent a meme to his suporters seytag the concept For esemple, the forces caused from the break Area, enoting water failuree had *safetr disadvantagee" He rommmended of a maas4ve pin carrying high pressure auper-Utilities design plants to meet thnee enterta.

  • that the AEC adopt a puhey of diarouraging fur-heeted water or steem were not sely analysed regulatore decide if the uuhties have done their ther use of preesurwouppression containmente,* in the mid.1960s. But in the ear 1970s, ree orch-Jube If, in the midst of amatruction, new informa.

which are made by General Electrie ere found that a 80$6nch p6pe at breake would uon shows the design does not meet =>me foresee-N advice wee rejected. On IQt 28,1972, Ja-ersete a lbres of I & aullion pounds. It could whip able problems, speelne requirementa-ealled emph llendrie, then a top AEC emetal and later around and broek other equipment. N ouper. regulatory guides, or res guideo-ere tacked on to heed of the NRC during the areident at Three Mile heated water could ohnot out and damage compa-thejeneral regulauena { laland, wrote to John Ulmry, than AEC deputy asate Now requirements were lesmed 6a nie guide typically contains a detailed method l-4 ) % . 0 h f .,7[,) e' 4 m f- - [# g' j i k k a 6 l 9 t uy i i c, - u ,y 4 1 r J ywWMb o e ==, i

r.,.

u l PA - g e t - g ~ j n 2 o ) -,7. E ,y A = t y e -p - e .e.

  • e' nee, eeen Pier 11 al Seaten A H H lie perm 4 wee egenved and fevreed reposterpy between March, t 0 Tl, a 4 August. t 0f 8 Re pr* a le ruiw #we times ort @nal i'
  • .s

4 WMNr dr W ed could er.ntu.ll/Mjoihb rWedequir' rhrtta" ' I i e ' i ! t tmd that only'ta few minor modincations of de.' r "the AEC waideluged with applic5tions for 0, c'gn* wm needed. lie based that on Ulf0's own construction permita in the early 1970s,* he said, o, analysia. "It's just some bracing that has to be stif "We were issuina construction permits it the rats

fened," Burke said

' of one a month. he total resources of the agency ~ ' ' As Ulf0's perceptione " proved to be inaccu. were devoted to issuing construction permita? rate," the state audit said, the company and othere lie added: "We thought the industry was smart - like it had to " adapt to a lese predictable and more enough to know that the new requirementa applied . adversary regulatory environment." hat environ, to them. We assumed they would keep up with our ment was unce tain and often furiously changing. moving target." Some regulatory guides han been revised fi's; - times.

  • * * ~

Typically, Denton said, h target would start , ' ne new guidelines an announced in the feder ' moving when an NRC sta6er had"a bright ides

  • of how a plant failun might den.The idea would the comment period, the guides be analyzed by the Regulatory uirements Re-p* E i ? Y A coes takes thne months to a year. A utility in theal register.Durinfore t N might change be

-'f ' "' [.' ' / g' MiM t. which was onen-a new rule was issued.The panel . ' + - - st,A* - middle of construction oRen has to guees ahat the la now known simply as "the ratchet committee," for meeting the general design eriteria ene methi final criteria will be and adjust its construction due to its inclination to keep tightening the regula-od the NkC eunaidere acceptable. If a utility accordingly. Or it can gamble and wait. , tory nacee. chooses another method,it must prove that its wayp in addition, more than 100 unsolwd safetF in adopting that philosophy, utilities complain, - probleme in many reactore have been identafled fedwal regulatore have shirked their responsibil-4 is just ga guad. Dy she early 1970s, the reg guides wwe chang. ' mr the yem. As rmarch mim thne "swrie i_ty: As the central repository of information on lasuse," the solutions are required in vary

  • UA commercial reactore, the govunment was in a ing rap 6dly. The acronym for new reg gu6 des. enfet NUREG (actually.
  • nuclear reguladon," followed ing egrwe in nectwo opmting and under con
  • better position to see the trende and should have by a number),became anathema te many utilities. ', struction. Without warning, one of the problema kept all utilities informed.

But Ulf0, designing Shoreham*e building and could find a solution-Denton saye *A utility could have come in and A utility that viewed regulations as stable was asid, 'I eso you have issued a new nre protection doing its costa analyses, did not percein this pre,. cess, according to a 1978 state audit. ' ) bound to get hurt la this ettmata. Ulf0, with ita,,gulauon. lim are the chanpa we want to make. ' Bret reactor and a small,inesputa'nced sta6mping % ny don't you review them before we put in the ement firm of no audit, by the maNJILO viewed fed with problems of oil prices, long Island's laba un-b mLrinklere?" He said Bechtel, which has built a Allen & llamilto re,uisuona as n Inc., aal i e*~ 9'* ~ =dr * *c = ~ ed ' t61* ha me Us --i-o w-a hm an a we 88a.nm. ev.n.

  • e-f mente were continually changing?When ]e Eurybody was in a state of shock, said ume," doing just that~

ree-ment of the new regulatory requirements was. llam Fitrgibbons, labor relauono director forDe lack of a central reporting system, howev-Ulf0 "We wwe trying so hard to find out what it er, also meant that as malfunctions occurred at imposed on Ulf0,it resulted in signincant slip-hd d We constantly told engineering. nectore regulatore and utilities could not ually struction atte rework,,mpletion and estensive con.. 'was we a to o. page in engineering co

  • haven't analysed it yet.'y would say,'lloid off, we hInpoint' trends and problems. For exam Give me an answer,'The 4

the audit said. Mile faland occident occurred largely be-Moreover, Shoreham has been harder hit by Since 1970, almnet 300 new or revised guideo cause of a malfunctioning ressure relief valve chan than other Mark 11 plants because its n ' have been added.11140 has also rmived abaut that had failed eight times a the previous three actor ilding is smaller and so much equipment la 840 questions from the NRC since 1976, accorcing years at other planta. But the NRC did not inform crammed into the space. It we had to do it ont to a 8 tone & Webster report. Many required d** other utiliues of the problem. *there was no e e tematie we of turning from espertence,"emid Ife-assi,n, we would have made the containment big. Aalled technical ruponsee or changw. .very ey. ort, Stone & Webster said that h9;1 la 1977 rep meny, the end of the President's t' - ' - en was 256 yure before it got a ennstruct on permit. -,i,a sta the at i na' ,n, eve,y d,s.ing and eve,y ificauen had toberwnamined.*Ewryaresof. 3,se M,ie isiand Rat problem is the basis for a $4-billion dam. arNge5 t AEC eone me w av ,g" gY g$,"g*h,"", j geu egal RC Public Utah. O.The undauon walls w e red in 1 - bine building alone, the new regulations resulted in Problema stemming from the lack of a central - w.1,:Ln.rre' *,st i',",eapd. 'w,g,:a am;lLa,'cos,'r,1"g:. my,gt gg,,ga,,wse;, g;;. se.o o e we were anaious to men forwar j ', rodseign took 60.000 man. hours,or more than dou. the Mme . ble the amount intually scheduled. no estra com-.know abou.t plant problems throubro's Andrew h the industry Dut 2,m wm warnin gr, ,t. or from consultants. puter analysis fbr Shonham cost 80 times mon Wof[rd cited the "gropovine* during Shareham's 3 b t ng f1r n ArduN uttle Er! f bt - di than ructore built past Sn yeare earlier. licensing hearings In 1971, testifying, If thm's e tional equipment requirements coupled with rising trouble la any factht, i,it's common knowledge ' ** ' " 'Movirig Targep ' ' ' " a"nyth'ing'O lait to sto labor and materiale eusta. It noted the " uncertain.

    • " h*

h *7 **".",,'w'e'ar'e'*m"ade som of it.", 7

ues" with resport to retrnactive requirementa by '

happene the AEC and oder regulatory agencies, For utthtlee everwhelmed by new ennte and UlL Ewn after some of the requirements wm le. eued, WILO apparently did not regnise their t*1uirements, regulatore enered little help. Den. Ing design changes Ikos, Allen said Ulf0 had magnitude. For saample, in April,1976, Briden. ton said it has twen up to each uulity er its archi. *near total dependence

  • en 8 tone & Webetar-bough, formerly General Electric's chief evaluator tect4ngineer to keep up with the changes, item by even though the utthly, which holds the construe.

of containment systems, amid Shareham's Mark tj item, and then redesign a plant to 64 them, ne. IAca permit, is legally responmble. design waa

  • dangerously defe.tive.' lie said major, regulatere made little effort to sounsel utilities, or s And despite the cha na regulatory climate, sustly changes trere needed. But Romas Burke, le inIDru these of probleme et, ether, planta that ntinued on Nest Page i

\\ W I ~ 7 tit Mt'eher@ee'leT W itF3T M aiEtsehe"elvinTirhpa Q ~ udse reaemmsenesomeonmiennton n cY n==*e.rb.or.n.e% ;W h & Oi ,l., ',y p ' ' m / L'+. ' (s,,_a[g $$ ammeme== am,yi m ot.e,ine p,u.im____- m, .en.. sn. n p -.e. _- - y + syn. ~n s gn gg, g 9,pg f Q" *M*enkes=hnsesy $973[=ampemeuro== % Jn } YPo el puhac hoertrige o P h;s }. e _- - -- 4,,,,,,;,ge,em,c,,y g u p g pe,mr med ami.awa. .c ,.-M h[ehr h h,,8!.8 k h *""M "" ( e.,s.de [ g ,3senesses L .m ,,wo.,e, u.a.o,n g. +W p,=acc M i 4.g=.g; n e '.oro. e.eanwy M,wrea==a e r-g% W;,sriassemboner, A.4 v.m/Poe='a a8ar law

    • 6*** *"*$asw%'??t*,98"M one=*er smi redew a

..a hw isd .1 N $"h 1 has 4 x- = g*,,'ne *im-ou.r,..e. P"%4*en.".he.e%'".' "e*a.**e,I*.'o?.@3 l! M _ $. iii 5 *?""W"""W" s enmen e anose n .e,*-ow r.eeuw ' $,tregnact etelemerCot comment. New Yorts Stese W, *e*me*w evt, ;p=",* vaar? I % weser M.,pom,,el hound! % M, na*

  • r' ? M,P *A* i'0I8ess "I**** O "* Oh0'*h** /

l q aa% -i, cy w... ,,., ~,.,. o% fM -j + i y f, July 1 erst ut.oo commanie on sewironmental ( f tot rnuet be reeow wo].pmgcen operose. * < ,,v ...m.m. ,1 ,n,em ei eme,c. r M*m,~.w wwq eeptember ieel Nntwtwindehnaleefetyre 3 ,' g.. N...,.. p,m ~g,i. o 4 ,y a, e 4. pone, eneusne tnei noem con op=a. - I Mey 1900: 4#welel aponessen to Asom6e Energy verw a imi uwo enee e ammen= on ' ~ 4* ~ h Gemmeesen ter e_Debspege.ee seester:>w 4 '?*te_deral egensee? ",ym' *J $ S_c W.1 ,,$ r ,,,. j g .._. f.u. b',. A4 g ev e.a -. m. ~~# .m. ,,,,,,_,,, a j e....... ......e ~.. ....... - ~ _ ~ n. .o 'e ., -. -. - - ~.. - - - - -.. -, .-Continued from Preceding Pego 'r Stone 4 Webster's $350 nuhn Shorsh:.m esti. mate is April.1973-when the construction permit M0W%fk#CO#falmW#f W0rks was grantad-contained *very littla money" for do. eign cha:igen, said Wilfred O. Uhl, Ulf0 presi-h shorehem roscu m a sco.mn ovas cheneer.7c teet dent. Fitgbbona, Ulf0fe labor mana, amid hgh,17 fasi acrose and won eines wens a e e inches recit n "there was nothing in Stone & We a exper. etande upnged 100 Isot on the ground and is supported ty lence* preparing it for many of Shoreham's huge geders. a cordains tr7 eone ct ureneurn bel ihet. whee py changes. Yet, according to U140 spokeewoman in operemon, reacmas tempermanes of up a g 000 degrees ' - " A. ~ q June Bruce,it waa not until 197S-twa years after. Fenrenhea. E r" Ulf0 took over management from Stone & Web. When es reaciar le not opwaang. contrat ede made of "J eter-that the utility easigned en employee tiomn ere nerspersed emong the bes assenemen t atieort fLil. time to monitor changing federal regulationsL neutrons and prwere a cheen mecnon. When es macw e in Other utilities did it differently *! had a group

            • "*8'P'"*"***"""""'**

to monitor changing ngulations,h program... "',,"M b I"", MI time looking after the licensin amid Georgia Poww Co.'s W.A. Widner, whose Ifatch 2 reactor. a e e huga png n n uw sysienv e hundred sinular to Shoreham and licensed about the same piousan,d sen,se the are at a residenses one h pressure e g,,, yi g pg,,,,e e giurr6ered hose % a man ppe, time, began operation in 1978 for a fifth the cost. e let of r=ta=*ve weier would shoot ota m e distance two. I At Alabama Poww, Senior Vice President John verde the longe er a tooene neid. W Jones said that Southern Company Services, the The eyewm must to procesem engineered and retaned. utility's parent company, has had,a Mi-time unit Many of tie enore lhen 45.000 weeds in a reaciar are inspeca-monitoring regulations for a decade. * ~ ed ty X-rays, emand weves or other techniques. Every pipe But with monitoring or without it, atory muse tie examined e ereure lia ween are f** enougrt The changes, large and small, have contin. to cas. many miles of pipe enuet tie leeloproot ' cade over the Shoreham project Among them: $1.9 Sirrounding the reactor le the containment, a mapr part million and 40.000 man-hours for a system of of the mactor's desense sysism in en accedere. W conia a trougtu and gentle eprays to shepherd nah swa ment e divided huizonta4 he a double tmeer. W mp hen, thnn the plant's I.ons !aland Sound intake cana precn contains ire macer e caned me drywen? a m $3.7 million and 29,000 man. hours to bulleg. shaped no en upside *wn ice cmem cona The toimen the control room, and $488,000 to add a second ""' sed ihe w* t a chancer perWAsad eth wa-i i D d'Y** ""d '**** *'*dD***"" "ner;*tnA to 'verscal ppee, ' called "downoom'ers.* p orce , floor to the security buildinI' syn possible Ulf0 And more changes are alw tier,,,,,w yhey M tiesos sie netwee wenn sna .2 l and the NRC concede. De utility la very vulner-a crut to racera main emern ories wwe e tirent to able now, said Jerry Wilson, the NRC's project drywee woved he 6preneure einem, wth would me care manager for Shoreham. late in the constructum, ce pem of toast resistance down the downoomers and no the applicant la not in a position to argue against a yie weer poot The poos would ease tu pressure try arreng requirement I might apply," he said. "Ihe appli-ye steem W water. There are also tI pose thel go direc8F namas - i cent has committed ali nia money. hfy concern la eum rie reactor e seesm toop to es suppresson poot$est safety. bly espertence la that whatever we require, vem would open ti en acadert e direcoy reaeve prosauro M 1, 6 m# _""'* y g v,.. n, ' ****' ee sm s France. Cranks Out Reactors Like Fords i France builds atomie planta like llenry Ford " *

  • Cost was the namon we choes standardised built caro-with an assembly line ofidentical mod. plants," amid Piern Tanguy, chief of the France *o* gue with utilities over details. Denton said his egency has tried ibr mon than a decade to get uth '%

i i ela. One vendor sella one design to one utility regu. stomie energy syncy. *But in the last anal sia. ties to agree en a standard design. One problem-lated by one pvwnment opncy. ,~ standardissa planta are also safer. Any %ere la competition among manufacturos end de-De United States builds atomie planta like a e tien le easier to detect." signere in the free 4nterprise eyetem. 9-( tailer designs suits: each one a custom AL Four But in the United Statee,' utilities am like Ref* b diferences in the Fnuh and Amwican po-vendors sell myriad daigns by's dosen engineer. doma,* amid Itarold Denton, head of reactor regula-litical systems han also helped shape their nuclear i ing firms to 60 utilities regulated by 36 state com.. tion for the UA Nuclear Regulatory Comrniaalon-programa, Unlike the UA syetem. French nuclear , missions, a score of federal agencies and two dosen *Esch wanta its own custom plant.* i,gulation excludes the public ikom moet decisions. i congreestonal committees and subcommitteee6 As a result, Denton said, the French *epend all Ructor sites are chosen by top govwnment oE 4 b result: French reactore take Eve to sin their estra time analy Ing-and improving-e etals; hearings on adarting the plant design to spe-l years to build 4alf the time of UA reactors and Smed design," while UA omeiale nyiew each reae-eine sites include t-hair =1 issues only. De public et lees than half the cost. A French reactor ordered tor, order thanges, discover cow problems and at. eennot participate. , -.8tuart I)lassond today costs $950 per kilowatt,enmpared with hem 'y*-+ $2,000 to $3,000 per kilowatt for UA reactore boa e e ginning opereuon in the 1960s.

  • n LI 'n 1 m]A U A g n

ne French stomie poww program, the worlds G Q Q AAaa U U most succeenfbt, la kiniling the broken dreams of early UA nuclear planners. De French raised Compared to the scrutiny of federal regulatorn, apment. ULCO emetals any that if the state their percentage of electrtetty produced from nucle-the hte Publie Service Commisalon's treatment makee company stockholdere pay bundreds of mil-er power hem 8 8 in 1976 to 40 in August. De of Ulr0's Shoreham nuclear project has amount. lions of dollars for Shoreham, customers will end N United States, meanwhile, inervaned its suelear ed to little more than an occasional glance, up pering anyway because ime. tors will demand pereestap hem 10 3 in 1976 to 10 8 last year.. b PSC had little in the way of authority or higher interest rates en htwo Lerowings. In 1974, after the Arab'e41 embargo, both resources te oversee the project and chose to ignore ne P8C which must decide she will pay for France end the United States pledged to incrosse er slowly eneretas the poww it had. Shoreham's cost everruns, la a 660 member unit of atomie energy use. At three of its sites, France la 1970, when Shoreham was to cost $261 mil. engineers, attorneys secounteets and other f broke gmund on 13 Identical reactore, eight of lion, the ITC abollahed the program under which profeestonals with heakuartere in Albany. Doo-i them 920.000 kilowatta and Ibut of them DJo,000. Ita field laspectore monitored power plant eon.> ntically,thesta#actsasanadversaryonallrate. la the United States,23 resetore at la altas got struction.. hike requesta. Seven commissioners appointed by construction permits in elsee ranging torp 644,000 In 1974, when Rhonham's price had jumped to the governor make Anal decisions after esaminins 4 to 128 million kilowatta. $550 million, the PSC stat accepted UILO's con. ~ evidence and testimony. The 12 French reactors, all now operating, struction plana and budget, without an indepen. "We were functioning as rubber stampe [be-averaged 8800 pu kilewett ta build. None ef the 23 dent anatrata. cause) the work load was impnes%,* eaid Karen i U A reactere le yet opersting; thett everage cost le In 1978, when Shoreham's price had jumped to Buretain, eurnnt head of the bte Consump Pro-t Y $1,800 per kilowatt. $969 million, the 150 allowed Ulf0 to enarp taction Hoard and a PSC member from 1978 to N b French atomie energy agency, Commissar. eustomere for $66 million of the plant's cost before 1981. b staff must do Anancial and legal hattle let e la ICnergie Atomique, etuse sa 076000 e operauen through slutrie rate bikee -e rare step. with seven major electrie utilides and a variety of 920.004kilowett Westinghouse reactor sind had. Jumped to $1.3 billion, the PSC allowed Ulf0 to -out the state, as well as consi in 1978, when the price of Bhareham had gas, water ano small electrie companlee through-ene designer start ehurning out nuclear W charge rustomere fbe another $200 million of the Joel Blau, the PSC attorney who hee handled l [ (Current [lans call for France to replace eating. plant's cost. As a r,esult. Ulf0.e cost through thetteustomers new pay + anost of Ulf0's rete. hike 9,as wt its own reactor Arm to compete interna. i g g,, p,,,,g gg pg,,g tore knew serwal ago that Ulf0's best esti. tionally) b engineerin had to be done only ele hilt mm wu fu b th naal M 'we would ,I Q**,*h ,than P p l 1 neh Nat until mid.1980 d6d the l5C atart obtaining aertously have,quesuoned whether Shonham tnanthly werk reporta hem Shoreham. ahoulJ continue.

    • '4"8 *****'"'*I**'

rench utility. Electriette d* Binee a single F A full inqntry into utfas management of in January,1941, the PSC reveted petitions by France, built and operated thle stannardised plant, Bhoreham was sus stad in 1974 by l5C etaff mem. Shoreham opponents that the project be aban-a) it hired and trained a wmk force that became as bert It wun't unu 1978, after an audit it commia. doned, because,41e state said, too much money-aloned, that state emctate approved the inquiry. $1.5 billion-had already been opent. familiar with the design e a mechanie who works ang the investigation did not start until recently, " lie 15C sets retes; we can't run the com. en one model ear. Con,truction and operatin4, 8 tate emeiale contend that they alwere have pany

  • anye Vincent Macri, a PSC Ananetal espert E

erewe, as well as utility managws, could be shifted the opuen of not allowing Ulf0 to charse custom. who Inas analyend Ulf0 for years,"I' hat's up to ,,y( pl ort!!, without retraining. ere be any sosta found is be the rwult el suaman. the boardofduestorah a o n. 4)6asr.and a r . - o n l r r,_;._, a ~ ,...%w,wn, s.,,,.. _ MD. g g p M g g.f,. ~.1,& = ^ a o s y, n ; ;,L,,,. y ' n > s' s., , s.~ o_ .~. y e.. wr w t ,,a . r,.- Y . [ m M-J .m e a ~ rw , m._d g ; ~ 4 4 'w

    • t
  • e ss n.,

g; g -

- mC, PART FIVE u > 4 4 ~

ow g.. c ,3 -n

  • e.e n

~y .g. .v- +, 4 ., qs p y q+ y ,**A T e I ? ~ l'LILCO Sankdillions j L' Into ; Risky,3,r.ining, Deal i m l j j f 3.,u g "i UICO has no far su ik 466.1 millim into the : thousand douare to in=t in b mns and other ee-By Stuart Diamond i b mine and mill-820million as a deposit forurani ' curities, according to Neurities and Exchange Newedar Environment wruer T IS a berren patch ofland la the middle ofa ' inn and $46.1 million as a loan to Bokum to devel-Commission reports, ue in s p the mill and Sulah the mine. Ulf0 pays in ' Bokum, who has not returns i Neweday phone New Mexico. More than 2,000 feet low. terest at or above the me este on that amount, # calls since 1979, enid of his Ulf0 (eal shortly - o desert, about 65 miles kom Albuque the surface are tone of rock that were to have. while so far havt acted no interest kom Bo-after it was announced,"Ihe name of the game to Iel produce affordable electricity for homes kum-which now considere bankrupt., me is to make money, and not leave a monument businesses on long Island. As of Sept 30, Ulf0's interest costs were behind in the way of a company... Fm a miner, long Island certainly got a god" deaf.foople of not en administrator? He added the In August,1978, when the long Island Light. 832 million, company officials said, bringing its ing Co. unveiled a bold venture into uramum. total investment to about $98 million. And each i mining, MICO officials said that Bokum Re. month, the interest mounta. With a 15 per cent The Bohum venture was the product of a crisis sources Corp. would be a cheap, reliable source of, prime reta, LIIf0's interest obligation would, touched off Sept. 8,1976, when Westinghouse " fuel for its Shoreham nuclear reactor, enving cus. grow to $188 million by the end of 1990. Last canceled its commitments to supply uranium to tomere $100 million by 1989. year, Ul40's Uh1 acknowledjedy"The Bokum lUlf0 and other utilities. He price of the ore Today, Ulf0's Dokum lavestment consista of preject.., la now marginal. l had risen sharply and Westinghouse claimed it a a flooded mine low. grade oro, a mothballed mill S But while Ulf0 was losing money on the would suffer serioua 6nancial harm if it boutht and potential losses of more than $100 million. ventun,BokumownerRichardBokumwasusing uranium at $26 per pound and sold it for $10. g81.6 million of the utility's money to explore ura. " "We had to do a lot of fast footwork," amid Who will pay for those losses? in a February,1981, report to shareholdere, nium properties inwhich the utility had noclaim82.7 million to provide Ulf0. *We were thrown into the pool and it was Ulf0 asid: "I'ho company expects that the i 3 amount of the loss. If any, should be recoverable fktends with company stock and several hundmd pink or swim.' Ulf0 decided to swim with Richard Bokum, through rates

  • A $100.million loss, taken now, a 63 yeareld, Princeton trained pologist cred-f would cost Ulf0 residential customers $36 each.

,^ ' ' 4 ited with discovering between a third and two- .~ ' "i' ' But Ulf0 Proeident Wilfred O. Uhl esid - more recently, "from a public relations stand. '-

  • W 6fths of all known U.S. uranium deposita. Bokum has said that he entered the uranium exploration point., I don't think we could ask our custom.
  • ' ' ' ' ' ' - /

- businese because a couple of prospecting friends ere to pay for it at this time? Uhl and board f *

  • P "* '
  • didn't know what they were doing and asked me

- chairman Charles Pierce said that Ulf0 will - / with Westinghouse Electrie Corp.-ever uranium '{, - to >in them as a geologist? De result was a com. use its settlement from a breach of contract suit pany called BabrePinoa and,la 1967, Bokum be-came its president. / supplies-to offset the Bokum lqssee. .t' .m One of his onda la the late 1960s was New 4 Uhl maintains, however, that,"because of the ' uranium la the ground

  • the Bokum venture *will p

, Mexico's Ambrosia lake, which supplies 10 per 4' cent of the worl(s uraniurn. Bokum netted $10 eventually turn out to be a good deal

  • 1 Brokere and other exporta f muia, with the,.

g. } l million on the sale of that stake to Oulf Oil Corp. a 4 ,,. ~ In 1961, Bokum formed United Nuclear Corp., situe.icm do not agree. "I think theree e substantial chance that f N , 't .which became the nation's nudor uranium Arm. In 1967, he left United Nuclear to again strike Ulf0 may have to write the whole thing off,"- + said George White Jr., senior vice president of = - t out on his own. In 1972, he formed Bokum Be- / .. y " sources."We wm quite impressed," Ulf0 Anancial Nuclear Exchange Cory. (Nuence) and an expert : on uranium. White, who said he knows the Bo ' -2 vice dent Thomas O'Brien said of Bokum, kum property and its owner, Richard Dokum, 'M 3' was so impreened that it contracted for called the mine "a dos...e pig in a ke? lie adds: 'It's deep. It's wet. It's crummy 8 million pounds of milled uranium concentrate or yellowcake ma after its own consultanta said the - Berause of the mine's problems-which in. P New Mexico site had only about half that much. clude relatively low grade ore-the production "We signed a tantract for nee million pounds price for Bokum's uranium is about $35 per = . because Bokum was convinced there was $n mil-pound, almoet 60 per cent above the current retail - 4 llon pounds there,' Boylan said. Eventually the market price of $23 60 per pound, according to 3 .A L9 commitment grew to 10 million pounds, although, figures supplied by UILO and various esperta.. \\ at that stage, Ulf0's consultanta could connrm That meane Ulf0 would lose $11.50 for every A 7 N-A theyresence of only 8.5 million in the ground. Y, p*%~ . m;% in addition to the consultants' reporta, that es. pound of m/anium concentrate that it entracted d Neweday has learned of several other factore, today. Thus, the 10 million pounds that Ulf0 haa, + , y. w perta any should han aroused concern about Bo-bought would mean a lose of $115 million at to-1, ~ * *- 1 Mp r kum and his mine: day e pricesif the company actually mined the oro. ' i

  • vv<

Uhl amid the utility's consultanta belim the -d M e ne laitial,1976 contract between Ulf0 uranium market will start to turn asound some ' M,'hm AIDUQUSIQU6 ml

  • and Dokum set the uranium price at $25 per

-4 time after 1988. But many experts any the cut -.Wi "4 p[ Y pound-815 below the market price et the time. 4 J. Other companies that looked at Bohum's property rent uranium slut, plus an influs of cheap foreign %!. I uranium, will keep the market price under $30 a th. O turned down that deal, among them Electricita de "h'ch '""' 'h "'"'"

  • '**'P'"*

pound for the entire derade. w e New Mexico 'A' h'm"'."Nuenco's White, who said he "h"as followed-la one rewnt study, Thomaa 1. Neff and llen-g gra P the Ulf0 Bokum venture closely, said,"When 5 4;.p you go into a car dealerehlp and see Ave identical 3 ry D. Jacoby of the Maneachusetta lastitute of - i< ,y' ^ Technology's Energy laboratory said they espect. l care for 89.000 and one just like it for $6,000, you

  • a contmuing downward trend in uranium pricee ' d.

4r %_4A, wonder if something's wrong? over the nort decade." Even with a surge in reee. .? 4 -W ter ordera, the id,'ne shortage of uranium i e At least three times, in reports to stock-ccontinued on Next page g y, j *moeuld loom at untal ths. year,3000?a ;.,m.n, o. c.a. e e el p,.w g. r,,y,. j q 6 -_,,,,,c l r , f ! ut some see it different!.5"Its c'o ~ f tha nanabrial staff of a m:,jor (ublic utility," D was o said SuffolkI trict AttorneyPatric Henry."ILxe good; the trocution was r said one y re-O the Public Service Commission looked et the aftus-' O *garded ur nium analyst.. c long Island consumer advocate Rickrd Kee-tion and acted as a rubber stamp." Sael, who is petitio ' the State Public Service

Commiaaion to protect ratepayers from ab.

Scrambling for Uranium - . song any Bokum losses, mid, It a obviou. they ? [L*tLO o&ialal didn't do their homework, check When Westinghouse canceled its uranium con- . tracts in 1975, UIf0 and other utilities sued for r-i out all the facts.* - C.- e- - Ulf0fa protection in the Bokum venture was breach of contract and began a frantic scramble for the right to foreclose on the property if Bokum : uranium.Milleduraniumpriceswererisingweek-4 , failed to live u h t In Se mber, ly, passing $40 a pound by late 1975. One New brk

1980, Uhl said
g to t e contrac.A foreclosure would so play the investment company, Mitchell-Hu

, appropriate development of the property that it 8100-a-pound uranium by 1978. Since UlfO needs would not be in our long-term interset to take that 11.5 miuion pounds for Shoreham, utility officials Wj, n course of action." faced the possibility ofa $1 billion price for fuelthey The Ml'mnny Two mapths later, Ulf0 filed for foreclosure. had hught would cost $100 million. HAA55 nen were no buyers in sight, no workers on the "We started looking for smaller suppliers,"said --Continued from Preceding Page property and interest costa for U1EO continued to Ulf0's Boylan. "We became a presence in the holders and the fed.*al vernment, Richard Bo. westerr. part of the country. We engaged people out kum warned of potentia problems with environ -mount. The step Ulf0 had been so reluctant to take did not solve its problems. - there... We attended meetings.. We spread t, mental re stfone and that his company's stock But if UlfO has suffered ikom the venture," the word around? tras "hig y speculative" and could plummet. He ' RM Bokum b wni At b % Ulf0's uranium meds m less +ti o7 I From the money UIEO lent him, Bokum has than three years away-Shoreham was to start op-k drawn $60400 a year in salarr, repaid the initia!.erating in 1978. cu pr ce cre. Uhl said Ulf0 omcials read Bokum's warn-82-million investownt in the property by him and After talking to 35 companies, Boylan said, ings but remained optimistic. Ulf0 learned about Bokum Resources in Novem-e Bokura's ore grade was substandard. b 'his associates;used $1.5 million to en loro for oth. ber,1975. Bokum told Ulf0 however, that he i average grade today m New Mexico-which pr*'. er uranium properties in which ICO has no claim; used $2.7 million to buy stock from other was negotiating with Electricite de France. When Bokum could not complete the deal, he called duces almost half of U.S. uranium-is 4 pounds of processed uranium per ton of mined rock, accord investors-etock that Bokum then distributed to Ulf0 officials from Paris in December,197 himself and his associates; and made several hun. ing to the U.S. government. In new mines in New dred thoM dollars by invating in banks and Boylan said. From the beginning,'U!f0 omeiale said they Mexico, the average grade is 3 per ton. Bo-bonds. hum's grade was 2 to 2.5 per ton, meaning lie has paid his family corporation rental fees were impressed with Bokum. "Mr. Bokum is one of that millions more tons of nck would have to be for office space and given political friends alarea of the last of the classic entrepnneurs in this coun-extracted at a substantially greater cost. Bokum stock, according to Securities and Exchange ~ try," said Ulf0 handal vice president Romas b_# e At 2,100 feet, Bokum's mine was to be more Commission reporta. In 1979, a U.S. Judge said he O'Brien. than twice the depth of the aversge mine, com-had bilked former stockholders out of 8500,000. Bo-Bokum had drilling rights on a 5 equare mile pounding the disadvantage of !ts bw-grade ore. kum paid $1.35 million in damages from his trea. property in which uranium ore was suspected, Open-pit mines in Wyoming asd Colorado-with sury, nearly all of which came from U140. about 65 miles weet of Albuquerque, it was in the Bokum also gave several state legislators in Granta Mineral Belt,which supplies 20 per cent of , ore grades as low as 1.8 pounda per ton-can offset t the lower quality because the ore can be extracted : New Mexico stock in Bokum Resources before it ' the world's uranium and is to uranium what the increased in value. Each legislator made about' Texas oil fields were to petroleum in the 1930s. cheeply. Deep mines, expensive to open and r-Bokum said there were 4.5 million to 5 million ate, can pay for themselves only when ore is ! $60,000. The FBI is investigating the gifta high. A 3,50 Moot mine developed by Gulf near the ' In addition, U140's top manneement was or. pounds of uranium in his property. U140 bought Bokum alte has grades as high as 6 pounds per ton.1 dered to testify be'oro a Suffolk grand jury investi. a report by Chapman, Wood and Briswell, Albu-In an interview two weeks ago. Uhl said: gating allegations that 14e Angeles crime figure ' querque geologiste, who said the property has 2.5 "Ihere's nothing wrong with the Bokum deal that Aladena " Jimmy"Fratianno made a quick,111egal million to 3 million pounds of minable uranium. - a better market for uranium wouldn't cure." }Ie ' $12,000 pront on a surge in Bokum's stock price That report had been reviewed by the French, Boy. said Bokum's lems are due chiefly to the col-after the utility's investment 'the grand jury inA lan said. lie added that Ulf0 also hired David S. lapes of um prices from more than $40 a dicted no one but issued a scathing report Oct.1, ' Robertson Associates of Toronto, considered one of pound to less than $25 in the past two years. The criticizing the Public Service Cammianlon for laxity the world's foremost drilling firms. Robertson con-problems with Bokum,he said,have"nothing to do ; in allowing Ulf0's investment. firmed the estimate of 2.5 million to 3 millino with the basic project itself", " Ibis report pointa out an alarming ineptness : pounda~,.... .a. WE?l % 1l W M ' M' M Mi & T M Y S $ % Q; g y m s @ m& G M i biM &&hEG ' gWWMWW wu N 9 e by se poundbywouse:Todore mornet prios O - A 3-gi v d 3073 and s4a ht is7s.n ' N s Wm-P] is abou ses.s0 a pound, comprAd wth 87Jn O (. lh [# p.j #% Fr 6. Furtierawasseein0 le nNossary, sinos the] 3 i, U, >, iso 0ve Wgredent-4to lootope U-236-ie less q 6 'T .j 1 i siero per oore of as nasural uranium ore.The, y .reet, U-me, to unusable tar bombe or in U.sJS [e y_ ' i y s ,t O gremotoreAs Wie & le shipped isom%- ( y [ M.481o canistere.%um se mqi to e esmeston plant, whose a is con-p y ey verted'te i(renl 3 g' .n .s ~ @l@9 pp p 3 d ~/ p bThen;the canisters ero erupped to en "en o ; a , twtechment owned by the teneral govem L 1 g ment: bt 'Myf Colt Rdge, Tenn.,erI A 2 l 't QPortsmouNt, Ohio.There,theconcentregonof j 1 ,p p L U 236'le increased so the meterlei is richM hfDDdh@35SAQpgF*h@%WWM@f.g[ 'enough%ustein'a,shain rescaloniThis leW 4Q y _h h ff A, M,,,,,,,# & done by th,e gas et' great preneurs g W%. @@#g,W4f ph t' ,, 3,,. g emoughinseer, so een be seiscshmiy nne-e-i g ,n,,,u 236,noiscuise go w magt, they menined siep riverahe shapes.To4. 7-U g. bElE%, O6 W [j >intheserWeswust,%TW{MW8st j CM urenlum le es plenului seNpweier4cgged eedmesOppe;MWpp.aAuorlds has 3 per omnt U 235, etch enough ford 4 y open.pt skies, the coal, E podesnous enQtom Wie gseund; a must be processed, het es p u M or tie 9'eurenhomaassover, cannot be used dghrpsesomr tual,The gasis cooled to a so8d andT ,hs n end is mined sher u 1 ~ ^ 6 wironmereal and essair pioblems. Uhe og, ale % wheat endlb5 must be seAnod for.umnium,u which feeNone R into peHele end puse R intop F,voieHie. showing Sie estige in pi%e and sup$Wie processing Is comppe Y g gedsguesy,teactore.qJf,,% i} 2

  1. perof a smned,veiueblecommoonysaidinseg Partet en process is einesui d por nosonsifismonesybyafewnemone,curron H

51 7 urenlum gh t that may paroist'sor years; put,q conisine only 2 to e pounds.'or uranium.-e 6comes less then a ahn at oosi or ce per una et n j g2ulumetely.esporte say,in a wedd Jar A teceon otJ per eers.$ e hqMheet, beoeuse at ne enormous power. Onom .QpThe ore le shipped to a miR. pulvestand andjounce of uranium-e fuel po g energy, demand wit osech up with - in tente of swirtng weser.The uranium Mjefybeso-can produce es much energy as a r M Ur fg core.anium originated in the earth's radioecahe a krdown the esopen or-mpunisine, buming theWbosom and is conecte u spoused ton) volcanoen and soweQ heavier then to roA so it semes.to the <suntoforisesthen20percentof wepriceor d beds 'or, ancient elseems.i As.Jhs - depoone, Gieh powde4 ceded yedoucale.;TNe le bought ( elecidoity'hom nucieer power.1 <-e u ij E I { i b _.y ... 7 ~ ~... +. ... s - -r- .. ~ m. m. %., e ' ULCO th:n Wgned a contractJan. 301976, for * **7' j* million in projected uranium cccts by 1989. ,.I 5 million of urr.nium-.undrilled reserves. W ' By 1973 the merket prica ofuranium had stabi-h"r,x ,y 11 sed at about $43 a pound-e drop in real dollzrs within millions of tons hvon teotball flalds and %,.% O.gN' f.$. A. l as fer ground se j rock. The initial price froni the $41 a pound reached in 1976. Ulf0 pro-J und in 1978, rising to, " w,Qrg r, * - dicted in filings with the state that the price would j was to be $26.65 per $40.40 per pound in 198 Ulf0advancedBohum i fg. 9, k y,4 , reach $73.30 a pound by 1989,; + - f j a no-interest, $15 million

  • security deposit
  • for the - y g, ;

l M %;c h i

  • Uhl was asked why Ulf0 invested more mon-uranium. But the utility borrowed the money and ~ ~ gg n
ey even though problems wm eurfacing. lie said, v

7, j,j.

  • Sure we were upset that Bokum hit water, but started adding interest to its debt.,,

Bokum was required to produce uranium by, p B r-hitting water when you are drilling a two thou. June,1978. N New York State Public Service s sand. foot shaA is not unusual.,it constituted a approved the contract in February,,, M. ', I setback, but it didn't constitute a problem which rww we. c. m 1976. y< V9 *- suggestad the project should be abandoned. It sus-Ulf0 officials were proud of theirprice, which i h ' *t I N' gested that it might be a little more expensive to ',N drill the shafV was substantially lower than the $40 per d rete in 1976, and the prqjected $80 per 1985 But while Ulf0 was buying more uranium, rate. "Other utilities.., asked how we did it"

the grade of Bok um ore was dropping. In Securities Boylan recalled during a 1978 interview.

( ' and Exchange Commission reporta filed in 1978, Uhl said recently,'We entered into Bokum as ". Bokum retroactively lowered the m grade of the an alternative to paying $40 a pound plus a-=6 ' Drst 5 million pounds Ulf0 bought in 1976 from 2.42 pounds per ton to 2.3 pounds per ton. The oth. tion.= .r

  • r 5 million pounds was 1.8 to 2.2 pounds per ton, But many of the more than 30 other U.S. utili-ties that ventured into the uranium businese had Bok gnater success with diferent methods: they Prices b mill, meanwhile, began to rise. By

> the fall of1978,the original $26.5 million estimate teamed up with companies that had substantial. g, , g g g, asseta of i own or bought ventures that they gye e inhed in mid-1979, six months late. By mid 1979. - 7""I" 'M the completion date had slipped to August,1979, One of those utilities, Public Service Electric & e4 e lv and the price had risen to $40 million. Gas of New Jersey, turned down the Bokum ven., k I"

  • in 1976.,

g ' y+ ;f. i m mine continued to flood.%e 1979 date for t ,It waag't big enough," amid Richard Gennone, j-hel delivery was not met. By October of that year, i h shaft was down to 1,830 feet-only a 70-foot i j the utility a manager of nuclear fuel supply. "We ~ i.I se in a th mmpletion schduld for 1 kind of felt that if we got involved in a joint ven-

  1. 9

+. i sometime in 1980. In the next three months only 5 l 4 ture, we would choose one of the best available to %N more feet were dug. The new date was the third minimize our riska. Richard Bokum was a proven - quarter,1980. And that's where the shaA is now, I s [ o[eaid, but mining and mMng-1,836 feet, with at least a year needed for comple-tion. PSE&G's Wyondng venture with Kerr.McGee, h largest domestic uranium producer, has been

  • an excellent deal,' Gennone said. b utility eGOod Mone7 After Bad' i

signed a contract for Kerr-McGee to mine the urav ) nium and esll it to PSE&G at the market price-UIf0, by 1979, was in serious financial difft-but to deduct from that price a credit for the utili _ culty and state officials were unwilling to let the e ty's initial investment and interest on that inveet ' utility tend Bokum the money required to finish me. t. Dus, when PSEAG got its first uranium in 1978 with a market price of around $40 a pound,j h projsict. In February,1980, h PSC staff ree-ommeqded another 31 million advance by Ulf0 Kerr-McGee reduced the price by about $16. .. Just to kee water pum running and security Gennone said PSE&G was initially to invest > $ guards pai But the sta[ concluded that the utal. y $115 nullion, but after paying $40 million, plus 7 , ity was " throwing good money after bad" in the interest between 1976 78, W uranium market Bokum venture. started to cellspee. b New Jersey utility stopped Dokum and Ulf0 agreed that the uranium adding money and got Kerr.McGee to pay the in* company should be sold to a concern with enough tenat since then-N utthty has gotten about a million pounds - . assets to finish the job. And on Jan. 4,1980, Occi-ikom the venture, but the production cost is now '

dental Minerals Corp., a subsidiary of the multina-tional Occidental Petroleum Co., obtained an option higher than the market price. So production has stopped and PSE&O is waiting, at no cost, and '

to buy a 64 per cent interest in Bokum for $48.7 buying uranium on the spot market. million, by paying $22.25 per share of stock. UIEO would get $13.7 million in cash immediately. W a , Of utilities like Ulf0 ht unged ahead ,,,.h ,4 A..a - .e 1: deal also would have obligated U1EO to buy Bo-with uranium ventures even after spot market - $g, 3' kum's uranium for at least $33 a pound-87.50 a price fell, Gennone said,"Where they were remine au a pound more than under h old arrangement. 4 was that when 1978 came around, they didn't real-works Arnsh two storage tanks et On April 22,1980, OxyMin astended ith option ime that what,was a good dealin 1976 was a bad. the Bokum mine and mW alte In August,1978. The ~, until June 27, saying it needed time to investigate, deal in 1978. e At the time that Ulf0 announced its venture. tanks are used m hold tamngs, the waste produa in - But June 20, the giant company decli-t to buy. the procesemg of uranium cre.. giving no explanation. Neweday interviewed Bertram Moll,vios president i Sources close to the negotiations said OxyMin of fuel supply for Consolidated Edison, which has was reluctant to buy Bokum stock at $22.25 per stuck with conventional supplies-buying pro 6 h mine was not finished by June,1978, as share when its value had dropped to $10 per share. ceased uranium on the open market. Moll acknowl-specined in the 1976 contract. But UIEO did not' In addition, the production costa one was $35 per l edged that is was possible to succeed in a uranium. pursue its option to foreclose; Shoreham had been pound-the price of uranium had already plum-mining venture. But he said: "!hese ventured are delayed two years until 1980, so the urpalum meted below that level. 'the prits is now $23.50 riaky, and have to be approached very carefbily ,,,,,t needed yet. Bokum and 8tearn> Rogers ar4 now suing each ... It's very complicated., Recently Nuence's White said,"Ulf0 should Bokum meanwhile, afgnad a contract for a milj ether in a dispute over construction. No work is have had second thoughts about a contract so be-with 8tearn> Rogers, a Denver architect and con. being done at the mill, which is about 95 per cent neath the market. There is no such thing as a free struction manager. But Bokum Resources Corp. complete. To finish the wou,ld take six months To Se lunch. People in the industry were aghast at the had no financing for the construction and Bokum a M h w dl win an td $20 depth, and the grade of the ore to be mined.= made no um to sink any of his substantialibnde In the spring of 1976. Bokum began to drill his into the project. milhon to $40 million, bringing the total job to < $110 million. N original projected cost for both deep mine to recover low grade ore. Within a year. Instead, he convinced Ulf0 to lend his com. the shaftwas down to 700 feet and completion was. pany $46.1 million, by a contract signed July 21, ;was $34 million. If Ulf0's claim to the Bokum property is in scheduled for December,1978-eiz months late. < 1978. Ulf0 also bought another 4 million pounds Lupheld by W courts, Uhl said, Ulf0 could hire L Dy the fallof1977 the shaft was down to 1,125 feet. : 1 of uranium-. bringing the total to 10 millio's ~ mmeone to complete the mine and milland operate 5 ' By the end of 1977 the shaft was at 1,600, with pounds.

them. But Michael Pisant, board chairman of Tros-bottoming out at 2,100 ocheduled for early 1978."'

N purchase fcllowed Bohum's claim at the ter Binger, Stevens and Roth, a Jersey City firm But in early 1978,with the shaft down to 1,760 ' end of 1977 that bla urentum holdings had in 'and broker of Bokum stock, said,*1f Bokum wasn't feet, Bokum ran into Gooding and the failure of water pumps. For several months work was de ' creased to 10 million me hble his previous able to do it, do you really think Ulf0is going to -h 4 estimate -due to additional stahoe he had ob. be able to do any better?" layed while pumps were repaired. taind in h area. Meanwhile, Ulf0 has 2.5 million pounds of Despite these problems. WIf0 decided in Ulf0's consultanta could confirm only 8.5 ' Westinghouse uranium--a quarter of Shoreham's rd April,1978, to buy another 1 million pounds of g; y ,ggg g lifetime needs, and a wide open market in which to 5 uranium, deliversble in 1986 and 1987 for a maxi-mum price of $62.50 per pound. At the time of the convinced be had ten milhon pounds < buy more. m Richard Bokum has Aled a $720-million coun-f contract, the spot market price was $43 per pound. W contract raised U140's contribution from tersuit assinst UlfO.h suit claims that Ulf0 [ For h 1 million pounds, Ulf0 added $5 mil. 320 million to $66.1 milhon. Bokum was to repe7 g-tion to the $15 million it originally advanced Bo. the $46.1 million loan at 10.5 percent. Ulf0 bor. - had complete onancial control over Bokum, pre - vented completion of the mine and mill, stymied k,un.1.ater that year, Ulf0 formed a resources rowed the money to lend him; the state PSC ap-Bokum's attempts to sell the property, enga in trust," and transferred the $20 million, borrowed proved the toen in November,1978. In its 1978

  • fraud" and " breach of fiduciary duty" la to

{ .,, s e e deposit to the trushwhich began adding lateroet neu annual report to stockholders, Ulf0 said the Bo., blame for Bokum's financial problema , i w ' w.Djust above the prime' rate... w,n.7

  • a, n 9 kum arrangements would save aers $100 tw. t ' "
  • p
-fontsnned on Next Page e

,k, s, -..,. q -- - ---.-. - - ~.- _ - ____ _.,_ _ _,.............,_,_,,_,a of szpertise? lle said the PSC questioned *wheth-terest in cash out ofits treasury each month. So

  1. er the envings are really worth the investment." far,it has paid $19 million. At a 15 per cent prime

.S Kann Burstein, head of the State Consumer rite-2 per cont lower than the current rtta-it

  • Protection Board and a PSC commissioner from will have paid 881 mihion in interest alone by 1978 until April,1981, says the PSC staff three. Dec. 31,1990. Ulf0 has taken credit for about years ago " promised me that ifit didn't work ou $6 million in interest owed by Bokum and may 1re yers were not going to pay for it." She sa continue crediting the interest to its account if
  • it

't be the Pb'C's concern if utilities get the utility gains control of the property. But For- 'into a bad lavestment," adding that Ulf0 stock-rer said that Ulf0 will not actually see the cash . holders abould for losses on the Bokum deal' until the venture operates. And any intervet costa L Current Paul Oiois last week wonld have to be added to the production cost , aald his as ocy will conduct a *fbil investigation" before it could be determined whether the ven-if Ulf0 aska customers to pay for losses on Bo-ture had really saved money compared to the . - kum. He said the PSC originally approved UI'r market ph of urdum Ulf0 cmcials ac-s u mg De l. me advanmeh.cau#seMg, mum foga *; do not a,n,"ledrea. fo, e. The Mm. e a

g a g, U ro.

a P 8 6 lovees from b investment. lie asserted "We -Continued from Prereding Pag, t uranium glut la enormous. stockholders. On Jan. 6,1981 Ulf0 share. ; not prudent in that investment.,,anything that's The situation aroused the ire of some Ulf0. won't han the ratepayere pay for Last year, U.S. operations mined and milled 42.5 I million pounda of uranium concentrate, but con. C, holder Adele IL Charal sued the company and ', c r/, - i ? oumption was only 18.7 million podnds, according some of its underwriters, omcers and managers ^ ' min the U.S. District Court of Eastern New York, . a,e mnaae,ed omciai sou,,es b, m whose prices to Nuenco, the Mento, Calif., nr TT ...e e u,, mum in. charging the company with failing to discloes im* Bokum still owns 800,000 sharea of stock in d . Large, established mines and mills have portant details of the thancial arrangements be* - ci among them a Phillipe Petroleum subsid-tween Ulf0 and Bokum.The suit charges viola *. his compt ny.ne stock,which sold as high as $35 inry.and a Reserve Oil & Minerale venture, both tions of sections 11 and 12 of the Securitaes Act of but now is trading at $1, cost him virtuall noth.ing. Analysts agree b eteck's price On Jan.14, Ulf0 shareholder Douglas S.{ rocket if the company is sold,in which case Bo. - ana Publie Service sold urani 1933 and asks for 818 million in damages. MacKay sued the firm and some ofits omcers and other Bohum stockholdere. ikom Bokum's mine will rise at least as fast as directore in State Supreme Court of Nassau On the $20 million escurity depos;t, Ulf0 inflation, experta any. Ifinflation were to average County, alleging "grose negligence and breach of ' has not been paying the interest but has merely 8 per omt annually, Bokum'a cost would be 470 6 fiduciary duty

  • by the company in the Bokum added it to the tab and then borrowed money on pound by 1990-more than twice the expected the new amount every three months or so. So,in market price at that time.

matter. Both suita are penaing. ' He Suffolk grand jury noted that the PSC had effect, the company has been paying interest on LILCO emeials any the Bokum venture could M failed to keep minutes of meetings in which it the interest, at a prime lend na rate that has be salvaged ifincreased demand triggers a mar-discussed the Ulf0.Bokum venture, failed toin ' topped 20 per cent. The total tab was about $32 ket recovery. But experts say the current urani-spect Bokum records or properties and failed to million at the end of September, according te um glut will increase after 1984 because U.S. interview Dokum employees or obtain industry = Ulf0 associate controller Ra nd Forrer. import limita on uranium are to L th!!y lifted, has paid the in.f allowing an influx ofcheap ore fkom nations such data before permitting Ulf0 to invut in Bokum. .2 On the $46.1 million. , m.+ ,2 as Australia and South Africa. Rio will *efree-It also reported that $800,000 of Ulf0's invest. .cu.a # c

  • tively keep many marginal-cost U.S. reservee ment was forwarded without PSC approval in 3

+

  • flagrant violation" of public service law. Had W.A ; p from being produced.* said Michael Cook, a ura-crinunal sanctione for such violatione not been e.i (

g nlum expert and a vice president of Florida Power & Light. If L11f0 holds the mine,its losses could re aled in 1970, District Attorney llenry said, E a we probably would have had indictments? .I I I rise to $400 million by 1990: The extraction cost lc would be 8700 million for uranium worth $300 , ]ll,al "It la clear that the public interest cannot be. served when those regulated dictate to the'regu ' million. a Ulf0 this past April settled its suit against f lators and when the regulatore acquiesce in auch s dictation" the grand jury report stated. 3 Westinghouse, receiving a total package thatthe, ll J l l utility values at more than $100 million. Uhl said Imat year, when the OxyMin acquisition was. that the utility will une the money to offset any etill e poseability, State PSC omclate ruled that if 3 Ild b ..,Bokum Iceses. 9 Ulf0 elected to use Bokum uranium despite the III Forrer said Ulf0 evaluates the Bokum ven-availability of cheaper uranium on the spot mar

  • 3 ture at the end of each year and still assumes it,

ket, the utility and its stockholders would pay the will be worthwhile. Uhl said the company will difference. 3 ~ ~ ~ ~

    • it.and see what develope. Ile said that *hom a Since then, the PSC has not formally indicated whether it would prevent Ulf 0 fkom charging ita pubhc relations standpoint, it makes a lot more customers for losses stemming from a mothballed J

15 sense to hold it on the booka...

  • ne alterna.

tive, writing off the entire venture as a loss, could Bokum mine and mill But PSC staff members told lean u140 ratepayers stuck with the bilt Uhl 18 Neweday that the commission still believes said, *1 don't think we could ask our customers to Ulf0 should be barred from assessing customers f

  • ?

for any Bokum costs above the market price. 5 P'7 "' it ** ihi' ti" Richard Bokum was asked In 1978, when Beyond that, the PSC "just doesn't have the g resources to investigate" the matter, said spokes-k,J g [n {t, IE[d ance The I 8'" 797t n 73747576777s 7s'ao'ei thefre doing, they shouldn't get into it... If thefre successful, the/n heroes. If thefre not. y been concerned for In 1978,Rivett told thefm going to pay.,oing to raise hell because the ratepayen am 3 Newsday that the reservations about the arrangement because Ulf0 of5cials were

  • getting into a venture that is outside their Sold

,s war amemma mes==a em see tem. ,. Next: The Price 1 I 2, t j WiTd V M<W q> w b.Mf 2i _ ^y'*e$- 4e ~ Ww M. y wg% w@G+fg j q %'E ,~ y w.t k h,J W /Evg i 3 qw g h ^ ^ M [Mo_.., 4 w m /a ~* ] ,e S o. 1 M .Wwy e'. 8,,4 .d g e' ,A, jby ' 1 ~^ F 1 - #w e c..o, q .N N l' ~ z wn:Wk&:j o s -e,- un ) a. s ~, 1 s .~.: .m . ;"*, s 1 j .ho W. A u! C. M.$. En ).

  • t-s p

J. . _... _.. %.........., wo,k.rha - or, u8 - ed.na,i, ,. - 8 A t "L .v 3 i a m.. ,,,........ m.x,. n...,,..u, ,.... p,.,p .,,_, s ? ^h ... >:{ 't ; s

  • qsW}d a_;s :.:; w < w

..;n t ~ ~ ,,L: - n ;; ~.y-3' gy.., cm.;m.4 ~ m, w3, w,,w, s { y g.Mr WW. L it., p cQ.4,-,;py,ph.,;,. g. Le..y .z. M. r + Tjgf.,' i ~ .e v.n...,, e, .r m....- W M N, t,.:.e,/y,i D, y -; } y%,.. A p s hr r s. -,. '. ' ,.m , J..,' b.w -

  • i a y [.a W W

,s : = u W n <n % n: **

  • $ p.;p TT;G, ART SIXf L.,,.

v,n...~ es : m, _. a

i- **

,s't w - p... ,a A finasciall_ Burden ^ i mFor?LIECOsand LI c e-s. ': s,, Wej another utility to share the burden by buying a performance level by the reactor could drive the By Stuart Diamond 'w ~ < i Nevaday 3:netrenment wruer

  • average yearly bill to the $1,000 mark in the Erst portion of the nuclear plant's ibture power.

few years of nnoreham's operation and push the in 1974, LIIEO's Standard & Poor's bond rat-i IN ITS recent newspaper and radio ads and bill inserts, LIIEO has portrayed its Shore-nuclear plant's promised savings beyond the turn ing was AA, the second highest Since then,it has ham project as the answer to "oilflation,= of the century. dropped two grades to BBB. blood /s Investors L. promising that the nuclear plant *will decrease Since 1976,the Pubfic Service Commission has Service has lowered the utilitys rating two our depende ace on OPEC cil and save customers taken what it terms en ' extraordinary" step: al. grades since 1979, from As to Baa. like you huirireds of millions of dollars on your ' lowing IJIEO to collect tens of millions of dollars %e utilitfe most recent bond sale was at 6om customere for Shoreham before it operates. 17.38 per cent, almost 1% percentage points more electric bills la years to come."' . De key phrase is "in years to come." Normally, current customers are not required to than Cincinnati Gas & Electric, which is building Shoreham has shackled LILCO and its pay for facilities that are to benefit fbture custom-its Zimmer nuclear plant at leen than half the cost 900,000 customers to annual carrying costa ao era. Utility watchere at Environmental Action, a of Shoreham. Investors, perceiving LIICO's poor ) . high that it may be Eve to 10 years before any," Washington, D.C., consumer groug,Ccriticias the Mnancial health, are exacting higher interest for ' advances as " pay now, buy later. . money the company deeperately needs. i envings over imported oil are realized. Currently, LIILO projecta that the nuclear no PSC emid the extra rates for Shoreham - On $1 billion in borrowings from 1978 85,the project will save 365 billion over the 30-year life, were needed because of LILCO's deteriorating 6-difference of 1 percentage point is $10 million a ci of the reactor To arrive at that Egure,the coin * ' nancial condition. And as further sid, the state year for 30 years, or $300 million. "Ratepayere C pany assumes oil prices will grow 0.6 to 10.5 per. agency last December exempted LIILO from its " are going tohave to pay that

  • LIICO's financial

-g* cent a year-at least one per cent faster than in " policy of requiring utili*ies to paso along certain vice president Domas CyBrien said. "Ihere is no Gation-and exceed $500 a barrel in the year "tas savinge to customers.ne result was another way thefre going to avoid paying that unlese 2013. $90 million in higher rates--about 866 annually there is a very substantial decline in interest. 3" In the meantime. IJICO acknowledges that for each residential customer. rates and we can recall the bonds at premium after Shoreham begins operating, customer rates ' ' At the heart of the dilemma le a Shoreham - will rise by at least 16 per cent,--bringing the 1. constructionbillsolargothatithasoutstrippedall price."8tandard & Poor's', the bond rating a ' average yearly residential bill from $768 to $891., of LIICO's other assets and traneformed the utili. last year said that LIICO was in " severe Snan. And it could get worse. .". t/s Sacal condition fkom robust to precarious.' cial strees." LIICO ofBeials have said that they will need ' Raymond Forrer, LIIEO associate controller, ac 2 A record 111E0 rete hike in May has helped, a mejor rate increase to help finance the plant '. knowledged that IJICO has " mortgaged the ib. Standard & Poor's analysta said recently, but even before Shoreham bepna operating in March. ture"to pay for Shoreham and its related projects. ' they see " continuing stroes" for the utility. 1983. In August, State ruolle Service Commis " Says IJICO Vice President fra Freilicher - Analyses of U.S. utilities by bonding compan. sion analyst Richard Ansaldo said be exppeted ' "W(re living hand to mouth." ' les show IJICO near the bottom in quality of , that request to come by January. -In 1975, the Snancial pressuns of building earnings and cash flow,which utility experta say A slower climb in the price of oil or natural Shoreham became so heavy that IJ1EO quietly c is the clearest measure of s' companfo financial gas, another increase in Shoreham's cost or a poor ' launched a aparadic and. uns,uccessib! affort to get . -Co,ntinued on Next Page

.nw x ~.;m+

.,k^ U '. '.

  • 6

' ' ~.., a... ..,. u......r== p.m : g., f ...gA,...u,.. c ,1. n : ~ . m,m. ~ .. n.,. ~ c ^ m,a G T iren. .f M A M) m w r,,,. ' i.. . n.s..,~ ) ga,. , y c a How LILCO Spends Its Dollar ,, a > ~,!

. <~

s.. { \\ l y C .} > _._.._.__-2 t.r= a -= -- = 3 'g sh c g. >gestatses P4 a'.vst it** e*ea.u E'a49e p.'.sh 1 i a me N. d h .:n.r ', Q.l** s, i ?~ 50 lbf S.horehern m i 2 e-r.,ci%

7...j~ch -

g 2-y ,e, I 52d I, 14e ,R _j ~ ~ ' Fuel and pglhesed power _ Taxes M ages aml bdefest Dividemis Hetal l-g* i ar rieerhe san um,ammt,%: @,PWillE.tte,wie,ge..e.,e.asn,gnings siation laneous ( M~ t c s o,,,,n ~ u s c..._..- r 7#9 ' " * ~ e 1.. . LIlf0 invested in See other nuclear planta and an hour-less than half what they paid in 1950, tak- ,, unsuccessful unnium mining vsnturs, Boke Re-ing inflation into ac-unt. Oil prices, which had 1V sources Inc. The total cost of those ventures to been $2.06 par bstrsi in 1960, dropped to $1.86 in LIIf0 la now about $500 million and could ulti-1968.

  • mately rise to more than $1 billion.The State Pub-On Sept. 22,1970, in granting LIICO its first

{lic Service Commission permitted these moves, rate increase since 1947 -a $10.8-million hike-- l 'although PSC counsel Joel Blau notes, *LIIf0 is the State PSC cited IJIf0's "su,perior record

  • and

' money all per the place-money'it added: "LIIf0 has proven itaeu to be an efDefent i doesn't ve." ' ~ ' ' ^

  • company."

i ) in 1979, LIILO spokeswoman June Bruce told in 1965, the year LIILO announced its nuclear .' Newsday that electric bills "might even go down" project,its stock sold for as much as $32 per share. I when Shonham begins operation. The plant tras That's mon than twice what it sells for this year- ' then to cost $1.24 billion and operate in Septem-more than four times as much when inflation la ber,1980. But that expectation vanished when - Shoreham crossed the $2 billion mark in April,.taken into account.LIIf0 planned to finance its $65.m 8 h.V}{lD Se Price 1980. --pay Pr-ident wilfred o. uhi aid in a $2s-mitiion piani hr ihree ir ditionai method - / D recent intervtew. Now LIIf0 officials say the One la " internal cash." or money left over after -Continued from Preceding Page plant won't start to save urney ever oil until 1988. operating expenses and dividends are paid. It is i health. Salomon Brothers rates LILCO 96th out of } that Shoreham's generating capacity won't be And since LIIf0 officials also now concede like the money people have in their savings ac-the 100 largest utilities. .t count for a down payment en a house. The more r. For the company's 170,000 common stock r. needed until 1988, the utility's customers will be internal cash, the less a utility has to borrow holders the current situation has become a para

  • paying a premium rate for unneeded powerduring and pay interest and the lower cost to custom-dox: They are earning the highest dividends in the nuclear plant's first ove yeare of operation. ' ers.

LIIf0 history as the utility attempts to lure and A 1978 state audit of LIIf0 concluded that the State regulatore allow utilities to charge cue. hold investors. But LIIf0 has been issuing more utility had no formal machanism to evaluate and tomers enough money to generate hefty internal and more stock, and selliry it at an increasing dio-update its financial plans. It also said LIICO had cash reserves for new plants. It's called a "depreci-count-substantially devaluing the worth of pre " inadequate staff support" to conduct comprehen-stion allowance," and takes into account the aging viously issued sharea. 5. alve analyses of whether the utility had the finane-of existing equipment. Ideally, utilities should fi- "LIlf0 was considered one of the best-run ing for its construction programs. ' nance half their construction with internal cash, 4 companies in the country until Shoreham," said But LIIf0's financial woes have been magni- ' analysts say. Today, the average is 36 per cent, Vincent Macri, Anancial analyst for the Public fled by the type of area it serves and the practices according to Salomon Brothers. LIILO's internal Service Comminaian. "It seemed to have done ev-of its customers. Iong Island is a predtminantly cash reserves are now about 10 per cent ofits con-erything right. But that's no longer true." residential ama with little heavy industry. Resi-struction budget and have been at or near aero for - How did it happen? Newsday's ewamination re-dential use varies substantially according to time Jaara. vealed the following-of day and season, while the total annual use is ne second method is by selling bonds, h 4

  • As Shoreham's massive cost overruns small compared with that of large commercial ee-bonds, usually with 30 year terms, carry a fixed mounted, LIIf0 depleted its cash reserves trying tablishments.

interest rate, de_ pending on how bond rating agen-to pay for them. It then had to borrow at near re- %st means LIICO pars for a lot ofestra plante cies-euch as Moody's and Standard & Poor's-cord interest rates to cover its construction budget to meet peak demand, while much ofits capacity judge the utility's credit. When LIIf0 announced and pay dividends, which is like floating new loans nmains idle the rest of the time. And it means that Shoreham, the mterest rate was 6 per cent annual-to make the paymenta on old ones It also let Shore-LIILO sella fewer kilowatt t.ours relative to the ly. It is now 18 per cent. I ham soak up ratepayer money earmarked for such planta it supporta, so each unit of electricity is ne third method is by selling stock. N operation and maintenance items as gas safety in-more expensive. yearly dividends, which generally must rise to l spections and then eought fhrther rate increases on But as LIIf0's rates rise,its customers cut attract and keep investors, are like interest on tne ground that the reliability of its system was back on their use of electricity so that the utility the amount stockholders " loaned" the company l "decut at an alarming rate." sells even fewer kilowatt bouro-end gota less; by buying its stock. The more stock a company

  • i e As O's cash became depleted,tho utility. cash.

sells, the more investors it has to

  • feed
  • each had to sell more bonds at ever-higher interest s LIIf0 of5cials for years have seen conserva-year with dividenda.

l t its construction permit for rates. Ita long term debt han doubled to moro than.tlon cut into revenues. In 1974, Charles Pierce.f. When LIICO [1973,it was meeting abou 81 billion; its annual interest payments have tri.now LIICO board chairman, talked about "perva-Shorehamin Apri l pled. In addition, LIIf0 is rennancing tens of mil-eive revenue losses" from conservation.%is year, per cent of its $100 million annual construction N hons ofdollars in 30-year-old bonds because it does - LIILO will lose about $30 million in revenuas be-budget ihnn internal cash. At the time, Shoreham not have the cash to retire them, b interest on cause ofoubstantialconservation since itslast rate. was expected to cost $350 million-of which $275 the old bonds was 3 to 4 per cent. De interest on increase. Theoretically, that means LIIEO would million was left to speno;LIIf0 faced the man, the new bonds is 15 to 17 per cent. LIICO custom-need another rate increase, perhaps cauuing resi-ageable prospect of covering the $275 million with 1 ero pay the difference. dents to use LIILO's product even less. $110 million in internal cash, $110 million in e As Shoreham rose in price, LIIf0 also sold. It is a far different picture than when LIIf0 bonda and $55 mi%a in stock. I enormous amounta of stock to raise cash to finance, started its atomic program in the mid 1960s amid, construction. LIICO now pays $160 million a skyrocketing electricity growth. Ren, LIILO was - DeP eted Cash l to its stockholders. Both the amount of a a highly profitable utility, well-regarded by inves,., outstanding stock and the total dividends it pays, tors and ngulators. An expanding com;sny con, As the need for funds-dividends, intenet, in-are far higher than those ofsimilarly aiand utilities tinuallyimprovingofBeiency LIILOikon-1947to flation-rose, LIICO took more and more money - i l with nuclear planta. _1969 reduced its rates by $7.2 million a year. In from its internal cash. ht depletion in turn ( e As its financial condition deteriorated. 1969, customers paid only 2.42 cents per kilowatt meant it had to Rnanm a larger percentage of ita Y'* K i a k j WllJir, ' ~~ ---~- m m

x. #

iMh ,I j~' M cI j[,% Y [ [ l a yf.Q -N k@-Q,y,g;'. ~. - . can- - many> i -m um e >h ? _ *,,.., a - n-

n. e M6 U A p)#c,. &d" % E4qq L.s i Wm __ _'_.

Q .Q ' $ 6. y s pre,&Vww 5 c s .r% .m hf Wh

k. h ng f

? E-VJT $ ;w alO ~Q

m. ys., ~ W.

3 l .'~ n. g1, ' le g A,, 4 if 4 [c ] l C f A. ..Ig,h .I .,es s - 1 J . ~ JT j f; kb E J.2 pag g _ a-. ' M W'e N wentWeente New voMa one pgs piarp yp[41,ippp pgs );ypwQ edditippdo esppew Mpp, bpshad.41PHW 49 A.h S b w *8 I611HitHHfWWis m#nutw4esason_ ierurseut.f ew mutm f rmtis 4 s., p m-r s ,i .~ ,1 a construction bud by selling stocks and bonda.. claim the quality of service is contiEming to date. _, _ _ mw Q_ ]' By 1977 O's internal cash was down to 9 riorate," he said. d per cent ofits construction budget. Meanwhile, its Despite the diversion of fbnds, heeever, LII, ' yearly borrowings rose ikom $100 mihn to $340 CO's cash kept runnine low. LIlf0 cmcials did million. LIILO ofScials and analysta last year not high enough rates to keep up with the drain $v agreed that the company had no internal cash. In of 's cost overrunn. i i contrast, Cincinnati Gas & Electric, for example,is p Ana 35 per cent ofita Zimmar plant construe-3^ G More Bo.nds y tion internal cash. Said Glenn Pafinni, Merrill Lynch utilities an- " W depletion ofUlf(Ys cash also meant more hy alyet: "Ulf0's cash-flow position is bad... bonde had to be sold. Its long-term debt doubled, to ) [and] will continue to deteriorate

  • until ham almost $1J billion ikom 1973 to '80, and its annual.

4 p operates and UIf0 starta getting npaid by cus* 0 internet $ymenta rose from $34 million to $114 l I tomers. '7 i million. bonds it sold in 1973, the interest rate h LIIf0's 1980 net income was $205 milh.on, a was 5.1 per cent. On the latest banda sold, it was -= \\ record. But only $96 million of that was cash.W 17.38 per cent.The difference in interest payments PM p: rest was a *peper earninge*-a $110 million se* alone to $12.28 million a year for each $100 million N counting entry called " allowance for funds used in borrowing. G;' ( d construction" or AFUDC. It approximates Ulf0's 1980 annual repor"t lista a need for .. e'* b i e annual interest cost for Shoreham's con * $734 million extra fbnds during 1981,most ofit for ~ h struction, and will turn into real cash for LIIf0 Sharaham other nuclear projects and related ex. Q when Shoreham begina operation and customers penset UILO planned to borrow an of this be-N pay for the plant through Ulf0 rates. cause it had no cash. Ita 1980 annual report lista $1 NMmgy nb W .h' dj' i p But LIII $120 mH11on cash in dividends mHlion in internal cash for the $7344hihn bud-to common s lders last year, and $40 million get. If ULCO were like the average U.S. utility,it =# in cash to stockholders who own preferred stock. would Snance $264 million of that budget with in-w/ W d After getting tax and depreciation refunda, Ulf0 ternal cash, the extra $264 million at C Aj still wound up $33 million in the hole. high interest gates MILO and its cus-M)M MC"DennounoseWensjebulkt- ) To get out of that hole,it sold more stock and tomere to tana of mahna of donare in extra pay-bondo-in effect, borrowed more money-to meet d'8I N i the com e obligations as well as to continue Recent figures supplied by LIILO paint a 1982 M MW& MieueferegnDe"Dn, menta. 1 paying r hereham. picture that's a little better, but internal cash is LLQOt bonde19am AA e A. Cost to LILC0; ~ In each case the tab was added to the construc-still less than 10 per cent of Ulf0's construction and aptpose: G1$ per;eeft M jreprest en I tion cost of Shoreham.The process works like this: costs. The PSC's Ansaldo said that by mid-1982, h.6.qQQw;$MpJyty q* If Ulf0 borrows $500 million at 10 percent inter-internal cash should be around aero again,without 'handard & Ped (a heere bond re9 est, it owes $50 million in interest at b end of the a further rate hikt ^ "hM E*'esfd h hat) first year. Instead of paying it, Ulf0 adds that Beyond that, hundreds of millions of dollars in ..-c '3 g " M. 1MDMhand% interest to the $500-million tab, and then pays 10 30' year bonds, coated by LIILO in the 1950s, will per cent interest the next year on $550 million. come due in the next few years. As is common in 1%g%^ e speel b( And the process continues compounding itself. the utility businees, Ulf0 paid only the interest bee to WN1 Ulf0's total estimated compounded inter-on the bonda each year and used the depreciation MWF" est-AFUDC-for the $2.49-billion Shoreham allowance included in its rates to build new planta, gehengeM"tJ Rechores toa . plant is $713 million-the largest expenditure *locluding Shoreham,or to pay divi % to attract. n a e ' " Melhe ump's weeks after labor. That meana LIILO will charge cus-new investors. g-gag gg;kueseeing tomers annually for that compounded tab: With h 1950s bonds were sold when the market ' mates 20 per cent, or $140 million a year. terest rates of 3 to 4 per cent. Tight mone policies.m I ____8'8"yy%eW4,4 taxes and other costa added, it initially approxi = and LIILO's strong credit rating could produce in-E. in Georgis-licensed the same time as Shoreham.by the Federal Reserve have now helpe[ produce @toens LECO seos,j In contrast, the AFUDC for the IIstch 2 reactor _ _ m T_ 2 but built for a fifth the prhas $67 million: a' rates that are 15 per cent higher. % ugh it could,caBing te1usehees W LEDO:sto e not have foreseen the rise, Ulf0 nevertheless gteceupette weehC , tenth of Shoreham's interest cost. b amount la faces the need to refinance its old bonds at the new i. ggggeng,, @8 Sendess&pportog@dalecereLE.0 especially high for Shoreham because Ulf0 had ratepend.st a time when its credit rating is ' I '. to borrow so much more, money at high interest weak..* " ^ e wha he MAy 0.2' . rates. s'~ Between 1981 and '85, $525 million in bonde Aeshbesseneneth lenew per i Ulf0 ofBcials, recognizing that borrowing are due. "Ihe mid-1980s are very heavy," said Lil, Moper

MbeN, threatened the company's financist health, turned CO's Forrer. An extra 15 per cent intenet on that to its operating and maintenance budget to Snance amount totals $78.8 million a year, or about $48 a AM g4 EscMcie WWlyj the expanding construction program. Company year extra for each of LIIf0fs r=Maatial electrie,

e simig President Uhl told PSC officials in 1978 that he ity customers. b W - Moben% _ ' p ^^e M. instructed company ofncers to cut back on such. In fact, LIIf0's declining cash earnings are M M^ d rein expenses so more money could be divertad to Shor. mahint it more and more dif5 cult to meetits grow-g M Mgg e)am. ing expensee. In February, Ulf0 wanted to sell loses tend seen0s sub J Among the activities cut back were the trim-30wpar bonda on the open market, but its invest. W M D W ee png 1.14 0 eE ming away of tree limbe ihnn powerknee to mini-ment bankers said that there would be no market [%M.We@% mine storm damage and inspecting of gas linee fbr the lasue. Mnally, LIILO negotiated with var-leading into homes-Ul40 had bee i g lous bonding firms to borrow the money at 15.75 an average of 28,200 gaslines per y ,bu 1977 per cent interest. the figure dropped to 1,000. In all, $10 million was And bond houses that bought the bond had a & mEen thafee ob diverted from such activities. hard time selling it to investore.

  • Bond hausse took

^ 904OnenseStosehem.Thist 'b PSC had already given Ulf0 rate in. a beating on it

  • the PSC"a Macri said. "The inves-Ometagetsunterof cuF creases to pay for those expenses. When Ul40 tors consider Ulf0 extremely risky." - '

shapes,abood utdo Wie fuenbar in; applied for its $171.million rate increese in 1978 - -Stock Sales. $ seN. chek is*Wesfupefed Wief pg$13 sigen hq3vidende. an increase that drew 10,000 letters of protest-the utility said it needed some of the money for. - maysesse m weseeseg eeen operation and "* ---- L--d e that were - Ulf0's 22.5 million shares of stock sold for

40) odeldmeft'ebeie We yearAM supposed to have been covered by the previous rate. $23 each in 1973 when thll construction of Shore-k MtgerslGng *eevere Onendef; nat ham began. With its estimate of $350 million, LII, egpggesgesgerbond)'

To justify the increasse, Uhl said: "The reliabil-CO's anancial indexes indicated it would need to ^-- Stevole*P ity of electric service is deaning at an alarming mall another 2.3 million shares to finlah the project.. g g'Dnese d- ' "E.i rate as measured by both the number of servies But as the cost climbed toward 82.6 bluion,its M

  • i interruptions erwrienced by our customers, and ' stock fell and its cash reservee evaporated,

'h le 188 g* i the total time duration of service interruption." sold not 2.3 million new shares, but 68.6 PSC counsel Blau called the diversion of funda million. Some of the new stoch went to pay divi-her_e$ppertest Raf*=*'*N designated Ibr gas line inspections *outrapous,. dands on the old stock. _.._ _ efmEenson and be and PSC staffers contended that the ernstic in contraat, the Cincinnati Cas & Electric Co. ilehee$ malhet[et selos above' 5 t reduction in inspections violated state cadet has had to sell only 16.5 million sharea of eneman gsidesstemeressit deplodort, j Ulf0 agreed to make up the number ofinspec-stock in the eight years that its $1.2-billion Zim-M M suiseene M ennual re V tions that had been eliminated. mer plant has been ur. der construction. The differ-pestiahonini*ts eenipeny paid out snore 5 In addition, the full commission, in an opinion ence in dividends alone le more than $82 million a enitutes es emch h Intens and dWende< f.88 38888"80.M 10 sh l dated April 27,1979, amid Ulf0 abould make up 88EM """8 888 EM1 the operation and maintenance deSciencies out of Currently, LIILO's stock sella at $15 a share, / test D befMW h its pro 6ta-at least the electrie system mainte-only 79 pe'r cent of actual value, based on the assete K@k4140(seesTenneier 9 Jn nance-end not get the money frem ratepayera. *In. It hack a ht means that more shareemust be sold m our view,' it said,"it is not within management's to raise a given amount of money. To compenaste isheres el comfnen eteeHMt Wie prime fate, N prerogative to avoid the statutory obligation to for the devaluation of the stock, WILO offered paimadad germ pereorge0eln,treerest and dM, . provme safe and adequate service,in order to pro-some shares at a discount to those already holding weng eendnueDsles.gr6(Q Chvide lavestors what =anag====* deems to be an its stock. And as new sharse are sold at a discount. - .Downtendin prene Ansey se2 adequate return." . previously issued shares are devalued. - m Dut Blau enid there is naindication Ulf0 haa *n

  • Thwnttant,the 1)vw donde Utslty*Aeerade een M%%.

sey i ......._ - er & ; y p made up the funds from pra6ts. "They continue to Continued on Next Pese r m-e-. .~ .w. ge-s, t _ Line, are neytral on Ulf0, recommending that ' pays its own interest, based on its financial con-their clients neither buy not sell the utility's is-dition t.nd arrangementa Ul40 is borrowing the O, sues. "Ulf0 is eery weak rad tha company la not money for Nine Mile through its trust at or s.bove IIkely to get stronger until Shoreham goes into the the prime rate, so its interest payments are sub-ratelaae-but it's typical of other utilities with stantially higher than traditional interest costs for ~ < large construction programe,* amid Elliot Platt, a combination of stocks and bonda la fact, of Ulr .utihties analyst for Danaldaan, Lufkin and Jan-CO's $900 mihn for the project, only $423 mil-lion-less than half-is the actual construction . rette of Manhattan, A few brokerspe houses are more concerned. In cost company of5cials any. He rest is interest. 1976, Jesup and sarnont, a small, respected Man- ' Enid Ulf0's Forrer: "We are borrowing the s hattan brokerage house, =u the Bret to recom, funds to pay theinterest.Theinterestlajust added . mend that its clients get rid of their UICO atock. to the amount of money that we owe. nen we pay .no strongest recommendation to sell comes from interest on the interest. When the interest rates / , r* : W. :/ - First Albany, a brokerage house which has gone ao are high, the interest la compounded at a high lev-5h - far as to any that people bug U140 stock are eL"In 1977, Ulf0 signed an agreement to -lems are perceived by a majority ofinvestore,r*ys w se new n-~ i engaging in " dumb buLas a-~1 P'avm.a t e~ P n.ce-me don ~~ t sa project. Dat plant was rejected by the state as .i O unneeded in 1980. But UICO had spent $46 -Continued fkom Preceding Page Amy Sogne utilities analyst fer the 6rm.* milhon on the prqject as of Sept. 30 and interest ' r- ' of Sept. 30 stood at virtually the same level that it. i < , +

  • held in the second guarter of 1973.

~ FiV8 Other Nucle &T Planta Blau and his associates at the PSC were par- ' - Comman stock dividends for the year ending Sept. 30 were about $1.90 per ehare, the equivalent Despite the severe cash probleme ofite Shore-ticularly trate over New Haven /Stuyvesant. of 12.7 per cent interest. ham era, UIEO has borrowed tena of mill 6ns to Ulf0 ofEcials told the PSC on June 15,1979, Recently, UIf0 got rates to cover stock earn.. Anance Sve other nuclear plants-4wo at James-that they didn't know whether they needed the , ings of 16 per cent per share to attract new invees smrt, one at Nine Mile Point upstate, and two at plant, but were investing in it because other a Nw Havenf3tuyvesant upstate. Ulf0 invested utilities in the state might need it The PSC ,, tore-although only three quartare of that money ' was actually paid in'dividende. Ulf0 einciale In these units as its fbturwhand ibr power,etaff said such an attitude "might be commend-able* in other cir - But "with Ulf0 - have said the high outlays are needed to attract. dropped steadily and its critice said.the units ' > would not be aandad until years after UILO pro.elatedng... It has the worst cash 41ow enteria - and keep investore. - The need to keep raising dividends to sell stock,. Jacted. of any utility in the state,its apparent willing-s while common in the utihty industry,forShore-parallela, UICO beganI hearings for Jamesport nees to bear the burden for other utilities le dif-UILO's need to sell and refinance bonas in 1974; the state re' the project in 1980. But.Scult to understand." ham. He rising stock dividende place the same ' the utility spent 867 milliononthe projectby Sept. ' De State PSC eventually said the New Havent kind of strain on the utility as the rising bond in-30 of this year and continues to add interest to its Stuyvesant plantirsa not needed by other utilities F* terest rates. --. expenditure while tryingto persuade state ofBcials either and rejected it in 1980. "Ibe last thing a Dua the apparent paraden while Ulf0's 6-that custorasse, not varahalders, should shoulder. cash-poor company abould do is invest in planta it nancial conditson worsena, its stock dividende the cost. In addition,U140s March 31,1981,re-doesn't need," Blau said. 'If UICO had its way," ries. Laat year, UILO'e stock was rated by For " port to the Securities and Evehanee f'amminaian sold Blau, "it would be an impossible a;tuation. tune magasins as the most profitable in, the ; maid the utility expected " substantial additional (Can you imagine? Shoreham, Jamaapart, Nine Northeast. ~ expenditures" in connection with the cancellation Mile 2 and New Haven /Stuyvesant at the same ne averageindividual Ulf0 stockholder now l of its contract for the reactor system. timer ~ owns 250 to 275 sharea which this yest would pro, y A 1979 study by the staffs of the PSC and Con- ' la an interview two weeks ago, Ulf0 Presi-vide about 8450 in tax. free income, accordmg to sumer Protection Board said the Jamesport invest-dent Uhl said "the time. frame was different" for Spencer llughes, manager ofinvestor relations for ment "would inevitably exacerbate any $nancial the other planta, that UILO expected Shoreham the utility. That income is tax.fhe because UI, problems the company might encounter"if Shore-to be in operation beibro itsdebt on the other pro-CO's poor financialcondition has left the company. ham was again delayed. It was. jacta came due. . with virtually no taxable income: a - UICO bought 18 per cent of the Nine Mile However, under croceeramination last year by A third of UI40's 170,000 etockholders hold Point plant in 1975. It was to spend 81404 Blau, MICO financial vice ' dent UBrien said Isas than 100 shares each. But the perception that, million, but Nina Mile 2,like am, has been, the utility did not saalyse itcould Ananea '% i, 'utihtystockholdersaremostlywidowsandretirees / plagued by massive cost esorrunst New UICO's Jamesport and New haven if 8hesehem wee de-. w -la outdated H amid. Many such people have, share is expected to sost 800G millima of which alayed until1983 orcost more than expected. At the y. , split up the amongthei_r children and grand ' $300 vnmian has been opent. ~ * * - * *' e, time Ulf0 drew up its investment sequence, in ' ' ~ - ' ' - - ' To invest in Nine Mile, Ulf0 set up a trust ' April,1979, Shoreham was to cost $1.2 billion and children. Suggestions by critics that UIf0 forego a divi-thnd, which borrows money and adds monthly operate in 1980, Blan aald. *Ne contingency plan., , he charged. dend payment to avoid rateincreases are ridiculed interest to the total the trust owee, and then ' by financial exporta,who any such an action would : borrows on the fbil amount again, including the *. O ofncials, in asking for higher rates in simply weaken the utility's al"lity to sell stock and ' interest. he loana start coming due in 1986, part to help finish Shoreham,last year threatened would force thrther rate incrmen anyway.

but UI40 hopes to postpone payment to as late to shut down the project if rates weren't boosted.
  • UILO's stockholders have teen its most faith-as 1989.

Company ofBeials made similar statements when ful support +rs," said the PSC"a Macri. But he add-Although the total cost of Nine Mile 2 is esti-asking for rate increase in 1974 and the pattern ed,"%ese people buy the stock for its dividends." ' mated at 83.7 billion, Ulf0 is paying more than has incensed state of5cials. . Most brokers, like Merrill Lynch and Value its 18 per cent for the project because,each utility ' "1his company la spaadine itselfinto oblivion, 3 ,,- -,y,, u w,s, dO T,Wr.aeMi [d'EIEGRTe'sler ",dTM$sNesE[# Ne$ C i er " - ' poementeines3epe,pened toesand

  • dChade.s A,s.Piersai.se, s,eme%,-ammes se mo5ULoo'in.see's H_eInisessend 1seper.esort er mo.st of as'e.nwerd.
o.

.s ammes on.e-ar _ musteer,,tectuuee?He'eine' helped propero,y ~end ee.ess.es .e,. end.asse msm ,e @teelkiebesanmeelsenidepareses __.ensamesen:Netsamme pace posidea of esise and now tuensee.mlr, toe'presment in.sep4 ans tasas pressean and meneef pneuson sensemeras sur ,r19eS, president le 4e74 and hoefd chairman in]% v tre L FreMoher,d4 project management eeder W 1978,,eimehorehank He holde huo advanced nelmost ad of shorehears construseonW@Nac esame sinos 1975, joened ut.CO in 1983. H %197s. no has been a isp ULoo seaisphet, t, gf WWred 0,Whl es; presidore,;has IWwee a esqueny esomer uns to74Jend assie.a einer muesian Jamedtit.00 healtu.nd.nyneednedepseneresandhede.w.ered empmeWestkomjpFH.r,en.leconsW-lhe esidiede LCo shoo tset He hasagendes pissing tent to e Ho w eenen,em. ser eee win.ed. inmuena eneneer er ce oien.ood end e e ane 7 for pe$ sat managemens beh'and hoe tsien seessenesis m pulMSA tenen piants. M 1e7e hebecame mW) n as n. Xts7+7s, amen he seemme passes *4p;emo eeWmenean pgene egenger and de uLcos nummer emessomy departmutu GJoseph Neversec4e;sensely'espainand Ashui energymulgewWhfginsonne,hasworkedterULCOinmeplannineP Ada Medeen, as,ulmo menseeret en e f seelegant to the chaengn'el the boodet'ess. $WINiefn GE has hencedleN ,g. for.the Lt.00 as a caed' engneery seeL%gesed Jessmense sees seet, ed hee done 'ter uneene'ter emeegust gioner ese AhomhanN protect manager'since F lespunissenemeneedtershorenem,menucee-N y ters. He wortes ' e,e seessor a h Atomic Energy.Comminolest,tgsn %fG Edesord J.WelshJf se,'utcoassistant]arleessore es Jensepos and lene hele Peired -A[ Z Edieord M. Servett,et4 ULOOs chief asy eNet enomey.joinsdulCO mio6e, anor a das, p"pelses/ and me popened yeomney needs of 6 -88a8 M "*" # hB G N viomer emes;tereils en een et ULcon seegedemanussepasene.washneseessehtra ?Edesord'WT Enciner,'as, treneurer emco 3

  • g P presisere. Eshment P marren.He joinedLA.CO se 4 tee ULCO seomey Iq 1he eres> year shorehem"

%p leger depenmere in tesemjWWwk Androer. WoMord,'se,.u(yK, - ici p been en eng en assiseme enemmer in 1ees en amed to the a teeneing heennge& 5 coe W Thoenes H.O'Brien,57,eeniorvicepreekwnmissemenivinepresidenitem te7+ae.,ened 2 manager and seeistant tesourer+, / ] 5 dein lor anance,is ou nrat top uLc0 mmousve eme aaninstes se ehmehem's amt'pressat mer# Reymond J. Forrer, 58 -a*ie'o o ,s from 1ses.EE Lahome troshore emhere more *Q tesifs, eversumer kine, h ! In 3e He worheqHor to Chase ManhasenAenk a maps and feconle clerk and hee beert west thei Prom tesa Go, he helped menses sensousson? Weer longer een any seer omoor. +O giess se end peaksensicey mann tem teso=*ar-me connessasYmeme meneur in n ddam - W4%g -stuart Diernend N%%3p hWeeM,gaMa,n. ~. m,@%Q-n n Q i n g%g au -- - - - esen WWf A beooneng to beneWee peeldmate enes@seh@- a: u o as % e t dRAF4WesJaJaised " Naw 2- - - y3..................__,........._....... l m., w I and then threatenirig us that it will close down the T - project unless we gn it higher rates

  • eaid PSC -

.j, ' ', f,;g e i, $80 attorney Blau. ' i

s. -,-,, m g. g. p.;

.n increase improves cash Cow for a time, until infla j / 60 L UIfO's itnal option le its customere. Each rate ' tion and Shoreham's rising costa erode it again..) G, "We're a utility," said Ulf0 Vice Prealdent Ira - - 3 Freilicher. *And anything we do is going to be paid

  • i Q

by the consumer sooner or later? g*, g M In 1976 and '78, the PSC allowed Ulf0 to M, s charge customere for $255 mihn of Shoreham's E L[ [ cost, m commi =lan called this an'"extraordi. 4**. nary remedy,* due to UILO's deteriorating 6-3 H' [ ' nancial conditloa. Regulatore generally don't let ' p companies charge for each " construction work in ,4. 8 k' p, % { g progrees," until s' plant begina operataan, be 'r r-N og 8 cause, among other things, they believe it lee. wp sene a utility's incentive to finish a plant o 'Tr777774 75'76 7778'79 80 6i '""$?rSc had so,ed it. e,cel tion wad hei, p- 'O.. s ooom = = W I'*9' 'd 8 UILO Enlah Shoreham quickly. But the price in-5 s s

  • M creased relentlessly and delays continued--due to ' U,,M <,

f.' s*5^ ', ' y' such thinge se low productivity of workers, long l f k', '," s. s sw on von nic, esse -"" ~ -. , c ' J '% lead times for equipment delivery and aanme i f +,'S < federal regulatione. e- ' q 4 I This past my, the PSC allowed Ulf0 to .' jM J.,',, ', " ;, ", '? ^ > ,(',' h[b,4 ',' " 7 I, charge for another $100 million of Shor, ham's, 5 %~n .g ' l cost, bringing the total to $355 million. Ulf0 om-f,',~. y ', s,,,/ ciale say that customere in the next year irill pay s s q; ' '/j, about 5 per cent of their bills for Shoreham. That's ' i ^ k NhofEcib any that until 1980, cuetemere - 'yl "f < '%[ ,u>a>n % c, b, O. g .ctuany beneetted a,m shoreham bece=e.ar " tax eaving of $17.4 million for cnnstruction work ' [,' ' " s

  • > '.[ *, M' '7 ' '
  • f*6

"+' 11 years the utility was require 8 to pass a net

  • s o

+ '4"> in progress to its ratepayers. The PSC freed UlfO from that requirement last year to help f,' g ' + -+ ' ' 's } ease its Snancial burden. About 860 of the pro ' sent ennual residenti.al b.ill of 4768 reg, acts th.at.+ s 3 + More rate increases are in eight. Ulf0's re- ' g q, m~~ s cord $184 million increase this past my will not i be summent to Enish the plant, said ThommeN i* " OfBrien, U140's Snancial vice president. In an p interview last year, he said that even had Ulf0 f c -- gotten the entire $228 million 14 requemi,"we'll' e ,,,, a have to have another rate increase" brore Shore. ,Q' ham begins operation, so Ulf0 'an Anlah the aneumes that the Shoreham reactor wul operate 60 UIf0 or its customere unt0 the year 2001. And s . plant; and then another increas(aner Shonhams per cent of the time the Aret four yeere and 70 per the immediata impact of the plant's total cost

      • "* operating.

i cent thereaRer. ' would be a rate increase of 23 per cent 'n its nrot j In more recent interviews, however, company But the aurage operating time for O.E. reac-full year of operation, rather than 16 per centr-the . omeials raised the poseability of gradually phasing tore to date la 50 per cent ano some in the United average yearly bill would reach 8945. Moreham's $2.49. billion met into Ulf0's rate. States have run less than 45 per cent of the time. Edsen concedes that one could eaa87 con-base, to lessen the immediataimpact on customers' Elsewhere, operating times have varied even more struct a " reasonable

  • ecenario in whah Shore-bills. But such a movewould require unprecedent. widely: Italy's Coerso reactor ran only 16.8 per ham falle to save any money over all until ed action by the State Public Service Commia= ion. t cent of the time last year, but Japan's Tokai 2 ran 1993-e decade aner its scheduled start of oper-And there are a variety of uncertaintiae, such as 72.2 per cent of the tune. Both are nearly identical ation. But he added that Ulf0's %est judg-who would pay the mitlions of douare in extra in- ; to Shoreham's Erk !! design.

,nent" remaine that the navings will begin in terest charges for the part of the plant that la inis According to L11EO engineering manneer.1968 and, over the 30-year life of the Shoreham - tially held out of the rate base. Adam mdsen, the utility's projection aise as. reacter, setal 865 billion. Another possibility is that the PSC, which le tumes that oil prices wilt ries 10.5 per cent a yeae John Lichtblae, a leading petroleum emnomist, l investigating to determine whop there Pas mie. maring 198846 and 8.4 por mut therseRer. But <alle sesumptions of oli envinge so far into the Aa-management on tlw Shoreham project, could deg some scomemlete And oil anahete fansee a slower

  • ture *maaMngless
  • besmene them em so many un-

,, /,w idese .c -* keep a potteen of Shorehem's -ef 'p"U -.t ' meertainties. In JEWr ,the sey hg cost out ef ulf0's' ente begeertha gmand thet it ( M* i the eilc. <e a + Ws,* Mude tboyerpt yness s r het W ha Jos ene

  • g

, etemmed enm miamanag=-a+ That, too,*wouly'* on future ...-s-of pued Juspect amseenten v sevesal typsedgiHhst sruelear, power" y ,essue giH depend upon whichest t All nylaoss e s of"ife' bemmes senhty. If Shoreham operates at

  • But what le, g - eclear is that lang talandere wul o

be unpmeedented. W's*.'- t 'r. e yacted by Ulf0,it will save 6.9 mil-have to wait Sve,10 or more yeare before Shor,- the levelaIs d oi anually n ita Smt four yeam ~ ham has any bendelal emiet on theinlactric bius ~ s i i n barm N 'GussbE Game ' v , and 8 million barrels aner that, Ulf0 eaya. ~ because the Ulf0 nuclear plant took so.ong and The point of all ulf0's investments in nuclear But if its performaare level le lower-40 per has cost so much to build. power was to displace oil, the cost of which now : cent for example-only 4.5 million barrels of oil "Ihis whole situationislike be inVietnam,"

  • accounts for about a third of the average monthly, will be saved annually. And if, at the same time,' amid Charles Schelke, a utilitiesU Once you're along to customers in the form of a fuel-cost a@ust-10.5 aAar 1983, Shoreham won't aave money for there, the problem is, how do you get out?"

But while Shoreham will replace that oil, its ment. g enom.= ew&Misjudgm, g.L. I's Need for: Power )% ber, electric rates for long Islanders.Re money :W'Ibe year 1975 would be marked by *catastroph-1 at Jamesport with three timee Shoreham's capac-g that now goes overseas to pay for foreign oil wil17 6 instead reimburse banks, bond holders and the*uti. i le" brownouts on lang Island if the Shoreham ity. Now Ulf0 estimatae that Jamesport would -g lity's stockh61ders, who, through their investment, atomie plant were not operating, UlfO of5cial i not be needed until 1999. And Ulf0 officials any helped finance Shoreham's construction. J.Wilfked O. Uhl warned in 1970. Shoreham will not be needed until 1988. Currently, about 3115 or 15 per cent of the. But 1975 was marked neither by brownouts nor s ne utility's power forecasters, aner erring on 1 everage yearly residential electric bill pays for-Shoreham's operation. Instead, there was enor ' the low side during the 1960s, erred on the high dividends and interest on bonds, including the part, mous excess generating espacity while demand for side during the 1970s. g " of the bill that goes for Shoreham. Does earmngs electricity tagged. And the long taland Lighting "We admit our forecasts have been wrong g and we have recognized the errorofour ways,,...said will rise sharply when the plant's costs become - Co. quietly bepn trying to sell off some of the un-i Sat'ahed plants fiature power output. Adam mdsen, Ulf0 engineering manager and g part of Ulf0's rate base. i ' In the process, Ulf0's fiscal health will im. As late as August,1977 Uhl, who has since Uhl's assistantin 1970.Buthe added:"We did the prove but its customere* electrie bille will climb.

  • become Ulf0's prendent, said long Island would s best job we could."

'.have 63quent brownouta and blackouts between Until the 1970s, a state audit of the Shoreham I The huestion is: how much?- 3 U14 s projection of a 16 per cent rate hike 1983 and'86ifthestatadidnotallowtwinteactore, w m M 4 g -Continued on Page 44R , s. l .g .g.,.,. ..a,.g...,. [ - =. -. + = o l -S e HAM: J e r I PART SEVEN

_

H W~ith Billions Invested, ~ Alternatives Are Few Hy Stuart Diamond Earlier this year, b Public Utilities Com. -utilities, LILCO customers are already paying Nevaday Enttronment Wrner mission of South Dakota dlaallowed more than $1 the second highest rates, accordmg to the Nation. HATEVER else ma be said about the million in charges by Northwestern Public Ser-al Association of Regulatory Utality Comminaion-3 future of the long land Li httng Co/s vice Co. after determining that a newly complet-era. h list is topped by Consolidated Edison. Shoreham nuclear plant, things ed coal plant was unneeded. h regulators al-And long Island planners worry that further are certain: lowed the utihty to collect for its long-term debt increases will affect not only household budgeta N construction is nearl complete. on the plant, and for operation and maintenance' but the region's economic health. Almost all of the $2.49-bi lion estimated cost but barred the use of ratepayer money for stock-has been borrowed or committed. ' holder dividends for as long as the plant rern.in. Naanau-Suffolk manufacturere have the third Someone will have to pay for it. unneeded highest energy bills of the country's 67 statistical For LIlf0, the immediate fbture holds a con-Also this year, Ohio's highest court ruled that arena, according to recent federal Sguna cited in tinued struggle to meet its projected March,1983, four utihtias could not charge their customers for a long !aland Regional Planning Board study. As completion date. Work sheeta obtained by News- $246 million spent on.~our canaled nuclear a result, the study notes,14ng Island does not ] day show some of the plant's systems several ' planta. contain many energy-intensive industrice and months behind schedule. humands of construc-John W. Wilson, a Washington, D C., econom-such industries are unlikely to locats here in the taon details remain incomplete. Federal regula-ic consultant and utility expert, notes that the. Aaturs, g I tory changes continue to nip at the project's heels. return that Lilf0 stockholdere set on their in. Brookhaven Nationallaboratory recently arw - If the time cannot be made up,in6ation and,estment entails some risk. In LIILO's case, Wil. ranged to cheaper upstate power as an aher-native to 0-generated eWeity. Whout mounti interest threaten yet another increase son, said. " Risk ' time la here."* ^ >. it, laboratory of5cials said that they might have ~ in costa. chard Ansaldo, a financial analyst for But LIlf0 ofHeials maintain that there is no the State Public Service Comminaion, said, 'It is reason for hir investors to be penalised. had to lay off up to 200 employees. j entirely within the realm of possibility that Shor-In discussing the PSC's investigation, LIlf0 Another siseable inename in LIlf0 rates cham oill cost $3 billion." President Wilfred O. Uhl said,"I am convinced "could be the nail in the cofnn" for tong Island's But even LIlf0 critic Richard Kessel, head ol' that any fault finding with respect to Lilf0 is ailing residential construction industry, warns Long faland Consumer Action, says,"Ihere's no going to be very ininunal... We are going to Lee Koppelman, executive daractor of the region-way out... If we finish Shoreham, it will cost show them that lithough Shoreham has cost a al planning board. more than $2.5 billion. It we don't finish Shore-gnat deal more than we thought it abould have But if LIIf0 is prevented from raising the ham, we will be stuck with a white elephant we cost, there was no way it could nave cost less. price ofits electricity to help pay offita Shoreham will have to pay for anyway." in the context of prudent decisions at the time debt, the banks, bondholdere and stockholders to h PSC is investigating the Shoreham project that the decisions were be' made." whom the money la owed are likely to take the to determine whather kny aspect ofit was mis-Uhl and even some critice agree that issue to court and shun future investment in ( managed. But while the PSC or the courta could the decision facing the PSC poses a conflict be-LIILO. l theoretically prevent part of the cost &om being tween electricity customare and those who helped "It would wipe out the value of the Icom-billed to the utality's custanere, there may be no Snance the Shoreham prWect by investing money y'el stock... almost indefinitely," Uhl said. way to insulate the ratepayers from the damage in the utility. t is not something you can recover from." that would do to LIIf0's finanaal stability. Of all those served by the nation's 100 largest Utilities expert Perry Wheaton of 'Ibeadore ,i NA1YRd SS.Qh l , j- ?. L F -e,, f y .f.. 3 . a M hQQ ,y ~j. g c s 4. - q -,,,s , {.,.. .p'

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- 4a g M e! E1 l .) i' ~. .,w, w J' -dsmL wsds. .m< u,._ n u,es a,e met,e, n oru.., w. a-o r Source: U.S. Bureau of the Censua y. [ ,.a maanr casar s=s te** mas ensam suman g ~ oEcials say. not going to go into service," said Ansaldo, PSC S In the interim, they say, Shoreham could be-financial analyst. "Now I feel, no matter how obso-

  • come subject to costly regulatory design changes lete the plant is,it's better than a lot of planta now
  • from which it would be exempt ifit were operating. operating, and there are a lot of bucks involved ABANDONMENT: "Ihe basie question is: here."

Should Shoreham be finished'" said Jamshed Ma- "What will we do?" Kessel said. "Isave a $2-t dan of the Georgetown Consulting Group, consul-billion structure on the beach at Shoreham, sa a . tante for Bufolk County. "Everything else flows monument to man's inability to control his own destiny? I don't want Shoreham to be finished. But ham there." ~ - In the fall of 1980, General Public Utilities of it has to be. What are we going to do, make it a

  1. New Jersey abandoned its partially built Forked mausoleum?" ~

e.* River nactor, citing naanml pmblems stemming * ' CONVERSIONTOCOAL:his alternative was

  • fterd the accident at the company's nree Mile 1s-the subject of a 75-page UlfO report. requested by
  1. ~

w-

  • _ mpwp land plant. In September, Boston Edison, also cit the Suffolk County Isgislature in 1979.The nucle-ing Snancial pressures, announced that it was ar plant was then 80 per cent complete and carried s,gg abandoning its Pilgrim 2 nuclear reactor.

an estimated construction cost of $1.58 billion. .g ,r But neither of those abandoned atomic projecte ' ' At the time,LIIf0 claimed that it would take ' Barry & Associates warns that at that point,7acJ was anywhere naar sa far along in construction or seven years and another $520 million to convert <. coes to capital markets would be foreclosed..~. All money spent as WWO's Simrebam plant. In walk-Shoreham into a coal-Gred generating plant, not. capital spending requirementa for everging from ing away from Forked River, GPU wea writing off ing that it would be cheaper to simply build a coal book-upe for new customers to repairing storm $394 million; Boston Ediarn had put $300 million plant from scratch. damage would have to be satisfied through rates." into Pilgrim 2. "There is no such thing as a conversion to coal," "In the end, there are no choices," Karen Bur. Ulf0 has already spent $2 Lillion on Shore said Ulfo engineering vice president Matthew stein, state consumer affaire director and a former ham, which la stated to cost $2.49-billion. no mas-Cordaro. "I'o replace Shoreham with a coal plant PSC member, said. "I'here was always this pretend elve complex of concrete and steel structures is means almost starting over,, thing-that we don't have to put it in the rate base. more than 90 per cent complete and three quarters

  • Trying to convert a nuclear plant to coal, I found out it was a lie."

ofits mechanical systems are ready for testing, ac. UIf0 ometals said,would mean scrapping the re-The debate and the demands for a change of cording to company omcials. De main reactor actor vessel, tearing down the reactor building, course on Shoreham continue. There have been lines have been pressuretested and a modifying the turbine, building a coal mill and re-calla for the project to be postponed or abandoned, Walking awa a stag-lated facihties and installing two boilers and anti-for the plant to be converted to coal or sold to a. gering write.off,y from all that, Madan said. public agency or for its staggering cost to be subai., "Ito umaailable fact la that the company's fia : pollution equipment, Adam Madman, then engineering manager for dised by the state or federal government. ture is in that unit,* said Anthony May, a utilities Ulfo, said that his staff estimated that 75 per i Some critica even propose letting MIf0 go; analyst for I.F. Rothschild,Unterberg,Towbin.*1f l cent of the money spent on the nuclear plant would r l bankrupt, though Wheaton notes,"the only ones. MICO abandons it, it abandons its future?* ' be lost in such a conversion." who make money in that situation are lawyers, ' May's analysia is shared by observers on most. Ulf0's 1979 report was greeted with skepti-accountants and maybe consultants? - sides of the issue. Shoreham will represent $2.49 cism by Shoreham opponents and some county om ' "Ihere aren't any easy answers

  • said former billion of Ulf0's $4.5 billion in total assets. cials but its concigsions were supported by omcials PSC chairman Charles ZielinskL Abandoning the plant would stillleave Ulf0 ob-of the State Energy Omce, which was already en.

"We're in uncharted waters,* said Stephen ligated to repay $2 billion or more. Yet half of the ' couraging coal conversion of oil. fired planta. 14 tham, attorney for the Shoreham Opponents Co. utility's annual income of about $300 million is "We have never looked in detail at the econom- ) ahtion. already committed to banks, bondholders and pre-ics of converting'a part4' 117 completed nuclear In its examination of the Shoreham project.:.ferred stockholders, who are likely to sue if they plant," said William uavia, director of the energy Newsday found that all of the most frequently, are not paid. omee's planning bureau. *I would genwally agree l urged alternatives pone serious problems.

  • LIIf0 could get tax credits that would cut the that the costs would be prohibitive."

POSTPONEMENT: Since UIf0 omeials now i 82. billion debt to about $1.3 billion-but it would nwe was little diangreement on one point--- f= j concede that the power to be generated by Shore.' havetopaybackabout$300millionincreditsithas that turning Shoreham into a coal. fired plant 1 ham won't be needed until 1968, some critics have already taken against the plant's fbture operation. would require an entirely new and costly set of 9 ) suggested that UICO halt construction to conduct i

  • Potential investors could also be scared off by " state and federal approvals and environmentalim-5 a study on whether the nuclear plant should be, an abandonment. Consequently, Ulf0 would be pact studies.

completed, abandoned or converted to coal. - hard. pressed to raise the money it needs to keep its SALE TO TILE STATE: One of the fastest ways But Vincent Macri, financial analyst for the generating system in operation-money for trucks, for Ulf0 and its customers to escape Shoreham's Public Service Commlesion, notes,*While it's easy. electrte wires, substations, transmission towere, burden le to sell it. And State Assemb. George 5 [lll to say, you just can*g stop construction and leave equi nt to service gas mains and other needs. Ilochbrueckner (D.Coram) has been trying since the plant there? " 'hether or not that plant opens, people will. March to getlegislat.iveconsideration of a bill that Ulf0 would still have to pay at least $200 - pay for it," said PSC spokesman Francis Rivett. would order the Power Authority of the State of g million a year in interest on the nnancinst of Shore. ' Abandonment would also leave Ulf0 and its New York to buy the nuclear plant. m" ham. "A lot of money has been spent," Macri said. customers with a double burden: Dey would still - PASNY, which owns two reactors and sella bil-i "UIf0 can't just carry it. Someone is going to have to shoulder the cost of Shoreham's construc. lions of kilowatt hours of cheap hydropower up-N have to pay for it." ~' 1 tion and, since the reactor wouldn't be operating, state, could conceivably lower shoreham's cost to j Just the task of shutting down such a massive they would still have to pay for oilto generate etee-long Island ratepayers through its tax advantages construction elfort and then cranking it up again s tricity. As a result, rates would rise higher than

  • as a public agency and its access to lower cost-a would take 18 montha and add between $300 mil., s they would if the plant went into operation..

4. flaanring. tiochbrueckner noted that PASNY is g --Continued on Next Page lion and $400 million to Shoreham's cost, Ulf0' "A cnuple of years ago, I thougl t, tht plant is ~ m. w ,y............ w ( ,o 4

( [ 5 conce behind Shori.m's Muk 11 rewtor, said nNmT WNkMMM.M. M q $ = - j board chairmen and Shor-ham project mans.ger Josep Novuro, now Ulf0's easiatuit to tha r'#%ggggjeftfiteft S40p tw "'"" _ g-ggh.N b.'end wilt gyl4 Uhl also said that there is "very little chance" d A9bleflMMeOlofQ p. L = q% denepAusisee<Wpfeiselgenm.teve that Ulf0 would sue the federal government m er F smM been se for along as Shorehern, LlLCQ would i,j actions taken by the Nuclear Regulatory Commis- %,to wees e5 e lose IR eMeets of43 M whleg;neggy hag;gg 38 blei 6 MI sion. "Ihey do what they think is nght," he said of the NRC. *Ibey are o regulatory age have any grounds for suing them,ncy. You don't 4 Weld MW'N00MWee,y a And in a recent interview,Uhl said that with the J l exception of environmentalists who tned to delay K p% da e

  • )

'y lqqT %p-4 8horeham, "Nobody who was involved in h pro-was... was mahcious in trying to create an in- [g) sir N crease in cost or delay.. It wasjust a lot of people r [q 7Nbb .. doing what they thought was their job.. " qg M ifet - - - j M As for the ibility of a mismanagement law-1 e W ponerefng g?yMM7 = J Probioqu Assonano to am.seportsu suit a6ainst utihty, even Irving Lthe, a long-f time 0 critte who represented Shoreham ? j would be dieepetelNiph le build a coal pielt { opponenta a decade ago, said he thought it would j here scretelVe sonennice $100 $sen by state

  • be dimcult for stockholders, customers or anyone

% " 67QTQ. MQ' ~ [ out$cttheplantleawhat Acer$Wgy ~ eine to smed w th such litigation Lake said that m eNperte,)ise,8crwerelen te coal wondd ) 7 under the "busmees judgment

  • rule, courta have JUr gg been extremely reluctant to penahze company i

h4(QD%% g g*,geg gj management, even if they were " egregiously E' wmng" with the benefit of hindsight. i p e b N hAMMMIg(* ,s M:4 " O,q A p p "In order to sustain a suit for waste or misman-4Poetpoftsmelt1He4* construction > taret Salt to, tite StaterSet Shechenrte mey agement," he said, "you would have to abow not Qbest,%@%pp@%deelehnowouldbok StatePowerAutNorty.segencyexperteneggd ji etu$eq cont 4All only that they were gronaly wmng, but that at the US* **7 "" *CDn 3f f ' th** d***"-{ there was absolutely no be-h ProblemtilLC4wouie Sell have to paygN%Qayg in0peregngnucteelpowerplantearhichoould% P use ne laund snencingledventages to easep I 2 3 about $200 enlBlon ennually in interest oosts the bunipn organg9 eland ggg mies n e t != smEl D ' M the prdect wee M the W h M Aumot h h d of utility costa on the grounds of mismanagement rtions projed enight Cost enothat $300Jnillion to

  • rnillioni And chen0ee ktlederal regulations h..

W<opposempureeeln0 W4and ? or " imprudence." But in the case of LIILO and d though locallegleistore could try to force oudt b Shoreham, Paul Gioia, chairman of the commis- @ the interirn could add men more in construo. 'a teko cnrer/ upstate legleistorecere shely tom sion since April, said, the fact that the plant consti-born costs The reaut.osuid be higher bok enincreasingthee0We inesserd tutes roughly half of b utihty's total assets, to beif eut Long Mti4W. V'M i would amphfy the effect of any potentialyenalty 'v* ratesa NOr@%y/A @M, qty}.% pVvfngw%itWd/d-W JDW hgfMW VN %h yp 9% Q c6" "We'll take whatever action we have to, he said. = M a N j M M /M @_W W w /t J But he added,"It would be a lot easier if the plant was a smaller percentage of their capitalization." ohnsM, PSC chainnan --Continued from Preceding Pete existing lanta. hm,Septemter. { runmns two nuclear planta, while Lilf 0 has new-LAW (T13: LILCO omcials could attempt to ,d77, to March,1981, said. "There ta always a 9 n0 0* far on* can 8 in actione against a or run any "I would hke to put my money on the offset some of Shoreham's cost by filing lawsuita = guy that's flown the plane." against parties that com y ometals any contnb-

  • "P*"I' m'm" " ice htenoratee hat a a '&mma'*"'*"'9""'"P""****

8

  1. nt w e I

In 1974, Consohdated Edison was bailed out of uted to the project's p me-General Electnc,

Stone & Web-that a ban around since the beginning of utihty Anancial trouble when PASNY was authonzed by whose reactor design proved fault [6 one oil plant,in Aatoria, Queena. Con Ed was paid deemed unacceptable by LILCO, labroject was " mgulation. W with n the Isgislature to buy it Indian Point 3 reactor and eter, whose early management o E

always required a certain balancing There isn't r unions E about $600 milhon for the two unfimahed plants, whose work rules and practices added to Shore-any easy answer to that question. E which PASNY then completed. The utility, which ham's cost, and federal regulators, whose changea Buretain, a Ulf 0 enue and former PbC mem- = canceled two diridends because of its poor cash of direction have haunted the prom ber, is pessimistic about the potential for penalues flow, watched its stock plummet from 824 to 87 in a Uhl said that LIILO has considered suing one against the utility. If the PSC were to bar hundreda E matter of weeks. he utilH v stock market wam or more of the other parties involved in Shoreham, of millions ofdollars in Shoreham costa from becom. M thrown into turmoil. The ensis passed and Con Ed, but added, "certainly we would not sue anybody ing part of LIlf0's rate base, Burstain said,'"what reheved of Indian 3 and Astoria costa, made a until the plant was finished, particularly none of will the (Snancial] market thinkt... 'Ibere is a = g" steady recovery the participanta in the project.' He said LIlf0 real pouibility of something ternble happening." But PASNY omcials, who were unenthusiastic would wait in any case"because you need coopera. If the investors are forced to bear the losses. IIP about the Con Ed bailout, strongly oppose a Shore. tion on the project." He said the company would Uhl said, "that comes right out of the hide" of the E ham take-over examine in detail whether it has grounda for a suit utihty's common stockholders. = "I don't want to buy any more pigs in a poke," when the plant is finished. If, as a result, Madan said, LIILO was forced g PASNY Chairman John Dyson said last year " Con T=chnically, though, O.E. sold Lilf0 only the "not to declare a dividend-to penaliae its stock-Ed's two plants are ante in our system.,the most troubled and expen. = T l-Shoreham's power would be more expensive than imported oil for at least five years, LIlfO -~ ' ometals have said--and perhaps for more than 10 N years. Lilf0 has similarly been unable to sell part of Shoreham's especity to other Northemat utihties, which have access to cheaper coal, hydro. p d U n """"\\ h-electne and nuclear power. tr ) ~- ,f i - , ~,, J p E Ilochbrueckner remains committed, though, to E getting his bill out of the Annembly Corporations, N s L Authonties and Commissions Committee and onto [ gg ggggg,dg/4 :? g , %m 3; .s i jy 8"'W the floor for consideration. = "My colleagues any it's a bng Island problem," ,,,h g g, N.,,L F g,. p, p, E j g,y av g g-he said. "But., we on kng taland bail other _ 7.. -g= .- :t 5 people in the state out of their lema. We have e / = lemon. We need help And if 's any chance to / turn that lemon into lemonade, it will come bom PASNY, not Lilf0." 4 The public purchase question is also being es. ( piored on the local level; the Suffolk legislature 5 ~ ,} d the county could buy LIlf0 er some part of sta ~- b' I M s-has commissioned a study to determine whether T g system b, { - g g @t y,{ A LIIf0 President Uhl has said, however, that G - in his company would not be interested in any pur-h h chase offer unicos it substantially encoeda the uttit. ~ ty's 84-bilhon book value W j Theoretically, tie county could try to force an kg = unfHendly sale through condemnation, but the l 3 I l enurta have held in euch cases that replacement - value must be paid for the property. In LIlf0's e og Il ll 5 d gd case, that would be an estimated til billion. he s-M,- l (( g cost to the county for the interest alone on $11 W- ,y e billion would be about 812 billion.--as much as

  • Ebaml32 NC inside the control mom at the Shoreham plant: books at rigtg are operating me P

ruc d bt e t s s s s *.,v. w., e *,ws e e a o g e o e o e e og e ssi. meg am wupwee n o e e, a eoeer.eevanggge.e.gge,,,,,,,ye,,,,,,,,,,,,, ,y,,,,u,,,,,,,,,, ..,..,,..g, , ;i. j m. ,,,c

7-j bear the brunt of that.. a businens mistaki went dhe it, s.nd ws didn't becsume wi wws goms I 9 abould not be tnnaf,rred to the riupayers." to build thone nuclear plants" in response to euch ergumsnta, Lilf0 om-LIILO had considered cual. On March 29, l g cials have pointed out that thrcugh most of the 1974 Liff0 omctals said changmg the taland 4 utility's history, its customers erooyed lower and Park, Far Rockway and Port Jefferson planta to l ^ lower rates because of it, management decisions coal would nave each residential customer $7 20 a l year--more than $500 million total But the uul-l its choice of nuclear power over oil or coal 16 ity decided to stay with its nuclear program yeo ago, in its determination to stick with that NEES was aleo the beneficiary of luck, howev. chm.- and in the problems that resulted Ulf0 er To the surprhe of moet in the utihty field, the has twen in the mairetream of UA utilities. emnomic advan agi r T nuc;nr power over coal Shoreham, said Andrew Reynolds, manager of has eroded over the inat seven years nuclear projecta for the Federal Energy Informs. And NEES was the eaception, not the rule tion Admmistration,"epitomised *.he phght of nu-Virtually all but utihties with acrees to nearby l l clear technology. was the prototype through coal supphes or hydropower jomal the rush to all the regulatory economic, technical and social atomic power in the late 1960s and early 1970s hand-wringmg in the 1970s" "There la this ingrained inertia," Mednen said What separates it kom other U.8 nuclear pro- " Utilities do start down the path on certain pro-holders in effect.-would any investor ever trust pcta is degree and enet-the highest per kilowatt pcts they get comnutted to . Once they start Ulf0 again?" cost of any commercial atomic plant in the nation. down those patha, there is tremendous resistance "It's the common stockholder of Ulf0 who's Could Ulf0 have pursued another course? to changing them." pung to take it on the chin," agreed thinn a Ib. N New England Electric System (NEER a Ulf0 omciala maintain that the path they insi, assistant vice president of Standard & Poor's utihty with 800,000 customers in western Masse-choes wsa troubled not by their etewardship but by "You would one a cry of conflacation of property." chusetta, did %y're very much hke us in eine the system of atomic plant planning, construction "Td lone rpy ph," Uhl said and load dietnbution," amid Adam Madsen, UI, and regulation in the United States *The system," Wheaton enid, "If you And imprudence, you CO's engineering manager and chief planner Ulf0 President Uhl said,"dmen't work in the create an interesting dilemma If you dah the in 1974 as oil pnces skyrocketed, both Lilf0 eense that this propet probably ended up costing a stockholders, that only tends to popardine the and NEES were 109 per cent oil-fired Ulf0 great deal moro than it muld have cost under some utthty's financial pomtion. As a result, you, in preened ahead with Shoreham, invested in nye sort of a different system." effect, end up popardiming the ratepayers" other reactors, repcted coal and downplayed the Ulf0's critica maintain that Ulf0 simply Docking the stakholders, would also shake signincance of conservation. NEES converted its chose the wrong path and that, safety aside, the the confidence of bondholders, iblan said *"The Brayton Point oil plant-the aise of Lilf0's future economic viabihty of nuclear power must be stockholders are a cushion for the bondholders " Northport plant-to cual and pushed energy con-viewed with a jaundiced eye Wilson, though. evokee the " cushion

  • imagery servatton. Today, NEES customers pay about 20 Burstein notaa mat Ulf0 and four upstate when he argues that Ulf0's stockholders should per cent less for electncity than Ulf0 customers. utihtaea are continuing w:th the Nme Mile 2 be made to absorb some Shoreham loanee. "You And the New England utihty is much stronger plant, which threatens to someday surpasa Shore-don't have to prove malfeasance," he said "It just financially "Yes, they did a very good pb," Mad-ham's cost per kilowatt didn't work out the way the managers thought it een said. *Brayton Pomt. Nt was a bntliant "The thing that scaree me," Burstein said,"is would work out. In our economy, stockholders thing.. Ny took that bull by the horna and that Tm not sure any learning has occurred."

An Awesome Neighbor at the Beachfront lly jlm Scovel Mrs Jones is philosophic about the prospect of District, according to Superintendent Richard Moreham - At first glance, there acema noth. an accident. "Any radiation leakage is gomg to Doramus About four-fifths of the current total ing eaceptional about the 30 eummer cottages affect a very wide area. in the event of a nucle. tas levy of about $14 nullion is paid for by Lilf0 strung ahms Creek Road here, facing Imns !aland ar dinaster, it wouldn't make any difference if we based on its Rhoreham annenament kund Ny are a mia of cedar and asbest.2e hved in Coram or Rocky Point or right where we Imas of that Shoreham property tan revenue, shakes with tapey television antennaa and sand e are," she nsid. "If anybody haa lt, we've all had it." Ihremus said, would mean cutting a vanety of scoured garbage cana. - ~ Nicholas Mammi, a nuratng school student at special projecta in special aid, muste and student But overlooking them, beyond the marsh the State Uruversity at Stony Brook, said he exchange, plus a probable sharp increase in the grens and cattails to the southwnt. is something doesn't worry about "a maanive nuclear melt-property tax rate, now at $1.50 per $1,000 of full that sets this commumty apart-the towering down" but does worry about "a small accident value gray and aqua reactor tower and auxiliary build- .. the quahty of workmanship worries me." But whether it is a boon or a threat to the ings of Imns taland Lighting Co 's Shoreham nu. Despite the reservations ofita nearest neigh-Shoreham-Wading River commumty, the plant's clear plant bors, however, others in the community point to domination of the beachfront is indisputable "At night, with the mist rismg up and all the the nuclear plant's positive impact "Ihere's this monstrous building 400 yarda lights on, it looks hke a city on Mars," amid Creek N project, is already "of gnat financial ad-away," said Mammi "Eu can't avoid it. And Road resident Fred flohusen. vantage to the Shoreham Wading River School there's no escaping it." N llobusca beach home is shout 200 yards th>m the chain unk fence marking the plant's .o , ++ n w. mew

  • v ny"[e av

%w M. boundary. N other cottages an all within a ,- b w, p ?

  • - 4t" y Q a' v

S c. c half. mile. J 4 M,? e 4, hd wa. g. Q '.? y h ,. W while moet residenta had left for the season, Ny '* ,% 9 ; $; those contacted earher this month said the tant has already had an impact: flahing has been urt; >*M I beachfronta scarred; the deer and other wildlife fHghtened off by construction notas; the general vacation-erene tranquihty marred And, in spite of Lilf0's aneurances that the plant will operate safely 6ta immediata neighbors worry to varying degrees about how much danger they might face if there were an accident. Ilohusen, a commercial flaherman, pointed to the waters on his beach and complained, "I used to han the best mussel beds around out there. th t then the company rerouted the river (Wading River) to the east, built that jetty over thbre and disturbed the whole beachfkont area } "So now the northerly eterms arour out my i beach N company fills in with loose sand, sure. h"' But the muanal beds get amothered with that I ) sand N mussels are gone And the fluke and 6 s floundero-even blackflah-that used to feed on } the hade are gone, too it's a real shame

  • i LILLO epokesman Charles Salit said that the utility's own monitortng thews no negative Im.

pact on local flehing as a result of Shoreham con. j struction and that environmental studsee project h no long-term til effects once the plant starts oper. %7se,ev 7p g-e r -m e - ~ ating " W6 - ~ &#& w*r *~ - A few homes to the east of the Hohusen rest. ,O - (l ( f.L s dance is the metage of Barclay and Petricia <>~ew+

    • my %se

'c TM Ag" ;6M, M,,aP ', %p'I-3.;y ,.~ '. ' ( g Jonee N Jones' cat, ucky, wee sicuting spar- .+- s f,3, i l rows while Mrs Jonee talked about the plant. 3 e. (' c e, G'e 5 "There used to be deer in the marsh, we don t see - " ' " ~ * * *

  • eC.

~ l thern now," Ms. Jones said "All the bustle and With his dog Fred Hohusen waks the beach that he says has been harmed by Shorche

f r Editoriala m Blunting the Impact of Shorehann's' Cost" Overruns ~ T One of the most troubling things about utility companies,which managed to build hurting b utility's customers too, by the astonishing cost overruns on the long similar plants elsewhere for half of Shore-making it more costly in the future for Island Lighting Co. nuclear generster at ham's price or less? And even if Ulf0 did Ulf0 to raise money. ~ Shoreham is the difficulty in apportioning nothing wrong, why should its customers So Ulf0 and its owners apparently responsibility for them. bear the cost of this bedeviled project? can't be dunned without also punishing its The Shoreham plant, once budgeted at

  • A basic dif!!culty in assigning blame customers. However regrettsble that about 8350 million,is now expected to cost for Shoreham's 82-billion-plus cost over-would be, the PSC must closely examine

$2.5 billion. Its nuclear power will be the 'run l' that ULCO parceled out the work the whole project. Any clear failures on s most expensive in the nation. And al* through contracts with the designer and LIILO's part should be identified, and a e. though it was promoted as a money sever builder, who in turn hired suppliers and price should be paid. for long Islanders, it will push even high* contractors, who in their turn dealt with There's another way to keep down the er the already high cost of electricity here; the labor unions. Ulf0 appears to have consumers' costs of Shoreham, however: Ulf0's customers face rate increases of isolated itself from the project by all those The State Power Authority could buy the at least 16 per cent as soon as Shoreham intermediaries, and by its relative inexpe-plant. Shoreham's power could still gu to goes into operation. rience with nuclear construction. long Island, with users here paying the The reasons for the overruns on the pro. To hold those intermediaries liable bill. But the state could pay off LIlfO's ject are legion. Its designer-builder, the would require complex and prolonged liti, debt at lower interest rates than the utility firm of Stone & Webster, ran up fece that sation by UI40. Even so, there may be no can, and it would be free of some state and exceed the totalintended construction cost. other way. federal taxes. Although no firm figures are .c The labor force aversged about 1.5 hours of actual work in each 7 hour day. Construe. But if it's' LILCO's' job to keep its con-available, the savir gs could be in the mil-g '* I*- tion materials arrived haphazardly.'And tractors on their toes, who keeps watch on , '"When Consolidated Edison was in trou-Washington constantly changed its mind LIlf07 The State Public Service Commis. about design requirements. sion will soon begin hearings to see wheth, ble, the state bailed it out by buying its LILCO officials say they believe the er any part of Shoreham's price should be Indian Point 3 nuclear generator in West-company did as well as possible under such laid to management negligence. If so, some chester and an oil. fired plant in Queens. circumstances. In essence, they blame the of the biMs for the project may be kept off So there e a precedent for sparing long Is-outcome on h!urphy's Law,which says that the books when the PSC decides how much landers from Shorehama extraordinary if anything can go wrong,it will. In this LIlf0 can charge its customers. costs by buying Shoreham. case, Lilf0 says, ar3 thing went wrong. .That would pass some of Shoreham's

  • Neither Ulf0 nor the state islikely to,

Perhaps that's so. But why didn't hfur-cost on to Ulf0's stockholders by reduc-be eager for this solution. Nevertheless, it t phy's Law wreak the same havoc on other ing their dividends. But it could end up deserves a. careful examination in Albany. c. ' Misjudging Long Island's Need for Electric Power -Continued fhnn Page 39R experte say, especially when it comee One potential customer who turned aged to keep their bond ratings at project noted," load growth was easily to deciding when and whether to build down a shan of Shoreham was the up-higher levels than U140's. predictable through extrapolation of new power plants."Ile need forpower state New York State Electric & Gas ln 1974, Anancially strapped Con-histor6 cal trends, and the planning is baie to every utility judgment," Co., which bought a nhare of ulf0's solidated Edlaon began ita recovery by process was thus relatively simple. In said Theodore J. Nagel, senior execu-Jarapport project-later blocked by selling the unfinished Indian Point 3 general, the industry was expertene-tive vice president of American Elec-state ernciala-in 1976. NYSEO reactor to the Power Authority of the ing a doubling of demand for electric tric Power, a Midwet utihty. . turned down Shoreham, Uhl said, be-State of New York.Uhlsaid Ulf0did energy each decade." With power needs dropping and the cause the ,) UlIO's projections for the 1970s, Snancial burden of the Shoreham pro too high. prcsected kilowatt price was 'not try a similar tack because has said it is unwilling to take on an- ' were consistent with those of tang Is. ject rising, Uhl said, Ulr0 in 1975 Many U.S. utilitsee have shared b ether partly Anished nuclear plant. land plannere,who envisioned moreof began canvassing other New York burden of nuclear plant construction Meanwhi!e, UlIO's plannere con-the rapid gmwth that had marked the State utilitise for a buyer "trying to from the beginning or attracted part-tinue_ to track the elusive future - g previous decade. Both sets of prqjec-encourage someone else te lm internet-nors later by keeping plant costs course of long Island's power needs. tions fell prey to the slowdown in ed." down. On April 3,1979, UILO Vice Pres-housing and development en lang Is- 'Its sales effort was pressed periodi. - Cincinnati Gas & Electric Co. split dient fra I. Freilicher said that if

i. temers would simply curtail their use culties. "

Now, with the summer of 1982 still land. ' cally over the past als years, Chl said, the cost of the Ziromer stamic plant Shoreham was not operating by the But even before growth slowed, but diminished each time the State with two other utibtles from the start. eummer of 1982, long Island would' ulf0 critics said,W utility failed to ' PSC gave Ulf0 hisber rates, tempo-~ CO & E owns 40 per cent of the plant, suffer frorn lack of electricity during consider the possibility that its cue, rarily alleviating its financing difD-which has been under construction peak demand periods. of electricity because the nsing cost of buy into it, because, apparent!y, the - for less than half the cost. Two other a winter away, ULCO has a4usted its foreign oil was driving up U1EO's timing of our offere was never right utilities, Dayton Power & Light and forecast: a 20 per cent excess of power rates. ~ with what people needed,"he said."Or' Columbia and Southern Ohio Electrie next June through September, rather 'g

  • ! hose forecosta are crucial, utility they didn't like the economice."

Ce4 ewn the rest.The Arms have man-than a shortage. -8tuart Diamond 1 3 c Reprinted as a Public Service by Newsday y (e e I ,}}

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