ML20137S481
| ML20137S481 | |
| Person / Time | |
|---|---|
| Site: | Vogtle  |
| Issue date: | 08/05/1985 |
| From: | Scherer R GEORGIA POWER CO. |
| To: | |
| References | |
| CON-#385-157 OL, PR-850805, NUDOCS 8509300394 | |
| Download: ML20137S481 (4) | |
Text
' i g'7 y po AT MUMBER SERVED AUG - 3 N83 moo. aunt.ne...gg. g 4 M// y / ,
i Y 203 ETEC Remarks
- News Ccnference R. W. Scherer August 5, 1985 Chief Executive Officer & Georgia Power Co.
Chaiman of the Board 85 AUG -9 N0 :55 Atlanta, Georgia Georgia Power Company
. Fi
" ' h$j;:.'
We have new information about Plant Vogtle which we wanted to share with you.
We have founo it necessary to increase the estimated budget for Plant Vogtle by about 16.7 percent. That will increase the total projected cost from $7.2 billion to $8.4 billion.
As you know, Georgia Power is one of four co-owners of the plant.
You.have been provided with some specific numbers on how the new budget ~is broken down between the co-owners. Georgia Power's portion of the new estimate is $3.6 billion. This specific increase, however, will not change our scheduled outside financing requirements.
We have also revised the schedule for the commercial operation of the plant's first unit. The expected commercial operation date of the first unit is now June 1987. That is a three-month extension from the previous estimate of March 1987.
As many of you know, we have anticipated this increase for some time now. There are several reasons why the estimated cost is up and the schedule is being adjusted.
First, these new budget estimates for Plant Vogtle reflect, among other things, a revision of projected productivity rates. Those rates ---
~
which measure progress by the number of man-h' o urs it takes to reach specified construction goals -- have been below the very ambitious targets we set last year.
8509300394 850005 PDR ADOCK O y 44 W
. c
\/
3 Remarks R. W. Scherer Page Two I want to make clear that these earlier goals were by every standard
-- a pursuit of excellence. In some areas, we accomplished those goals.
However, we have simply not met the high standards of excellence we set for ourselves.
We are at the stage in construction where much of the work is extremely detailed, with a good part of it installing complex electrical systems. That work is taking longer-than we projected -- even though our overall production level is high.
As a result, we have had excellent construction progress -- or production, even though we have not met the specific productivity rates which were set. For example, we have placed more than 500 thousand cubic yards of concrete at Plant Vogtle and installed almost six million linear
- feet of wire and cable. However, the total number of man-hours it has taken us to make that kind of progress have been higher than we antici-pated.
Therefore, we have had high levels of production -- but somewhat lower levels of productivity.
Another reason for the revision in the Vogtle budget is the increase in the amount of electrical materials, including wire and cable. We have determined that larger amounts of those materials need to be installed than we originally estimated. This. reevaluation contributes to the overall increase.
Let me emphasize that while the projected cost of Plant Vogtle has increased, the quality of the project is, we believe, one of the best.
We have designed and are completing a facility that we believe will be very safe and very efficient. We have always emphasized quality and safety
Y Remarks R. W. Scherer Page Three in our program. That quality costs money. However, it is the best way we know to ensure that when the plant is finished, it will operate at the highest levels of efficiency and safety.
Finally, let me say this. We are not one to take our cormlitments lightly. We have kept the lights on in Georgia. We have accommodated a high level of economic growth. We have kept our rates competitive. As many of you know, our rates are among the nations's lowest and they will continue to be competitive even after Plant Vogtle is completed. 'We are committed to keeping a reliable and affordable supply of electricity for all Georgians.
This latest increase in the cost of Plant Vogtle will have no effect on our continued comitment to build and operate the facility, in fact, the need for Vogtle's generating capacity is more apparent than ever.
All time records in both the cummer and winter demand for electricity have been set in 1985. In fact, during early June, our customers' demand for electricity not only surpassed the old record but exceeded our projected peak load for 1987.
We feel more strongly than ever that Plant Vogtle will play a vital role in providing a reliable supply of electricity for Georgians over the next 40 years.
6 t^
PLANT V0GTLE FACT SHEET OWNERS: OPERATOR / CONSTRUCTOR:
Georgia Power Company . . . . . 45.7% Georgia Power Company Oglethorpe Power Corporation . . 30.0%
Municipal Electric Authority ARCHITECT / ENGINEER:
of Georgia . . . . . . . . . 22.7%
City of Dalton ......... 1.6% Bechtel Power Corporation and Southern Company Services, Inc.
Approximately 34 miles south of Augusta, Georgia, on the Savannah River $8.4 billion, including financing Nearest City - Waynesboro, Georgia PERCENT COMPLETE:
REACTORS: Unit 1 Unit 2 Type - Pressurized Water Reactor 82% 47%
Size - 1,160 megawatts per unit APPR0XIMATE EMPLOYMENT:
NUCLEAR STEAM SUPPLY SYSTEM: 11,000 total Georgia Power 2,000 Westinghouse Electric Company Contractors and Other - 9,000 TURBINE GENERATOR:
ANNUAL PAYROLL:
General Electric Company p CONTAINMENT: $300 Million vertical, cylindrical, post-tensioned COMMERCIAL OPERATION:
concrete structure with a dome and a flat base.. It houses reactor, reactor Unit 1 - 1987 coolant system and other Nuclear Steam Unit 2 - 1988 System Supply (NSSS) components. The interior is lined with carbon steel plate. SIZE OF CONSTRUCTION SITE:
Concrete shields the' reactor and other 3,150 acres NSSS components. It is 140 feet in diameter and 225 feet high. Vertical wall thickness is 3 feet 9 inches. TAXES:
Dome thickness is 2 feet 6 inches and foundation thickness is 10 feet. It is projected that by 1988 Georgia Power and its co-owners will have paid approximately $40 million in ad valorem taxes to Burke County. !
08/05/85 i I