ML20150A893
| ML20150A893 | |
| Person / Time | |
|---|---|
| Site: | Trojan File:Portland General Electric icon.png |
| Issue date: | 10/16/1978 |
| From: | Durocher H PORTLAND GENERAL ELECTRIC CO. |
| To: | |
| References | |
| NUDOCS 7810190184 | |
| Download: ML20150A893 (4) | |
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w UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD
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In the Matter of
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PORTLAND GENERAL ELECTRIC COMPANY, )
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(Control Building)
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(Trojan Nuclear Plant)
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TESTIMONY OF HECTOR J. DUROCHER I am the Assistant Administrator for Power Management of the Bonneville Power Administration (BPA).
In this position, I am responsible for administration of BPA functions respecting the marketing, exchange, and delivery of electric power.
BPA is a tegional marketing agency within the Federal Department of Energy.
It markets energy produced by 30 Federal hydroelectric projects constructed and operated by the Corps of Engineers and the Bureau of Reclamation in the Pacific Northwest.
In addition, BPA has acquired rights to and markets output from the City of Eugene, Oregon's 30 per-cent share of the capability of the Trojan Nuclear Plant, the Hanford generating plant of the Washington Public Power Supply System (WPPSS) l and, when completed, will market output from all or parts of three additional nuclear plants under construction by WPPSS.
i Page 1 - Testimony of Hector J. Durocher
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With, Trojan not operating, utilities in the Pacific Northwest will have difficulty in satisfying their total power loads.
BPA has determined that it cannot satisfy its total loads.
To satisy its-firm 1/ power commitments, BPA will use power from the Hanford Nuclear Plant.
Due to the closure of Trojan, BPA has withdrawn from its industrial customers the power produced by the Hanford Nuclear Plant formerly contracted to industries on a withdrawal basic.
The incremental cost of power produced by the Trojan Nuclear Plant is about 3 mills per kilowatt-hour while the cost to recipients of energy produced by the Hanford Nuclear Plant is expected to be 12-14 mills per kilowatt-hour.
This means that BPA will incur an' additional cost of 9-11 mills per kilowatt-hour to supply the 2.0 billion kilowatt-hours to purchasers of firm power the could have been produced by BPA's share of the Trojan Nuclear Plant during the July 1, 1978 - June 30, 1979 year.
This represents an additional cost to BPA of $18-22 million, which BPA will have to pass on to its customers.
f 1/ BPA must satisfy its firm power commitments without regard to streamflow conditions on its system, the operating capabilities of its generating plants, or other factors except major natural forces.
BPA also supplies nonfirm power, but only when it is assured of power in amounts greater than that needed to supply its firm power obligations.
Page 2 - Testimony of Hector J. Durocher
The notice of withdrawal of the Hanford power has compelled BPA industrial customers to seek and acquire power from other sources at costs higher than the cost of power that could have been supplied to them by the Hanford Nuclear. Plant.
Energy produced by the Hanford Nuclear Plant would have cost these industries 12-14 mills per kilowatt-hour.
To replace power from Hanford, industries to date have arranged to obtain energy from the following sources:
SOURCE MEGAWATT-HOURS MILIS PER KWH TOTAL COST Montana Power Company 100,000 21.84
$2,184,000 West Kootenay P&L Co.
418,700 17.63
$7,381,681 This power represents only a portion of the 2.25 billion kilowatt-hours which could have been supplied by Hanford.
BPA expects that the additional power, if available, for the industries will have to be purchased at a higher cost than the power they have already obtained.
B.C. Hydro, which sold surplus power last year at rates varying between 20 and 30 mills per kilowatt-hour, has no such power available this year.
Utilities in the Pacific Southwest, if they have power available for sale, will sell it at at least their cost, which is 23-25 mills per kilowatt-hour, plus losses.
BPA therefore estimates that the average cost of the kilowatt-hours that industries would have to purchase to replace that not nrovided by the Hanford Nuclear Plant would be 25 mills per kilowatt-hour.
This price is 11-13 mills per kilowatt-hour more than the cost of power from Hanford, so that the industrial customers will have to pay an additional amount of $25-29 million for energy in 1978-79.
Page 3 - Testimony of Hector J. Durocher i
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If energy is simply not available or if these industries are unable economically to pay the price necessary to acquire additional energy to l
totally replace that not produced by Hanford, they will have to curtail
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production approximately 13 1/2 weeks earlier than would otherwise be necessary unless heavy early fall rains occur.
Our estimates show that this would result in the loss of approximately 600-800 jobs in direct employment and perhaps up to 2,000 jobs in related services and
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industries.
In addition, the loss of production and shutdorn and startup costs would result in further cost and losses in the tens of millions of dollars.
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i If the Trojan plant is restarted this fall, a major part of the Hanford l
energy would be reassigned to BPA's industrial customers.
This would I-
markedly reduce the excess costs which BPA would incur and pass on to its customers.
It would also limit the industries' exposure to added costs to the purchase commitments they have already made.
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. Page 4 - Testimony of Hector J. Durocher L-
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