ML20153C817

Safety Evaluation Supporting Corrections to Amends 9 & 8 to CPPR-126 & CPPR-127,respectively

ML20153C817
Person / Time
Site:	Comanche Peak
Issue date:	08/25/1988
From:	NRC OFFICE OF SPECIAL PROJECTS
To:
Shared Package
ML20153C797	List: ML20153C793 ML20153C805 ML20153C817 ML20153C828
References
NUDOCS 8809010304
Download: ML20153C817 (3)

Text

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SAFETY EVALUATION BY THE OFFICE OF SPECIAL PROJECTS RELATING TO AMENDMENT NO. 9 TO C0liSTRUCTION PERMIT CPPR-126 AND AMENDMENT NO. 8 TO CONSTRUCTION PERMIT CPPR-127 1

TEXAS UTILITIES ELECTRIC COMPANY, ET AL*

COMANCHE PEAK STEAM ELECTRIC STATION, UNITS 1 AND 2 DOCKET N05. 50-445 AND 50-446 INTRODUCTION ,

By a letter dated March 4, 1988, as supplemented on March 31, 1988, Texas Utilities Electric Company (TV Electric) requested an amendment to Construction Permit Nos. CPPR-126 and CPPR-127 to permit a reallocation of ownership in-terest in the Comanche Peak Steam Electric Station (CPSES), Units 1 and 2.

EVALUATION Amendment No. 9 to Construction No. CPPR-126 and Amendment flo. 8 to Construction Permit No. CPPR-127 permit the transfer of a 6.2% ownership interest in the

Comanche Peak Steani Electric Station, Units 1 and 2, from Texas Municipal P'ower Agency (TMPA)'to TU Electric. Issuance of Amendment No. g and Amendment No. 8 would delete TitPA as an owner on the construction permits and increase TV Electric's aggregate cwnership to 94-1/30%.

Antitrust Matters I All existing CPSES owners (licensees) have been subjected te antitrust review.

in addition, extensive antitrust license conditions that apply to TV Electric have been attached to the CPSES construction permits. The proposed reallocation t 3The current Construction Permit holders for the Comanche Peak Steam Electric Station are: Texas Utilities Electric Company, Brazos Electric Power Cooperative, Inc., T,eus Nunicipal Power Agency and Tex-La Electric Cooperative of Texas, Inc. Trtnsfer of ownership interest from Texas Municipal Power Agency to Texas Lttdities Electric Company authorized herein takes place in 10 installments as set forth in the Agreement attached to the applicttion for amendme'it dated March 4,1985. At the completion thereof Texas Municipal Power Agency is no longer an applicant or construction 4

permit holder.

8809010304 000025 PDR O ADOCK 05000445 PNU

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i Safety Evaluation of ownership interest does not provide for a new owner or licensee, only a re-purchase of interest by the lead applicant, TV Electric.

The license conditions attached to the CPSES construction permit required TV Electric to offer ownership access to entities in a specified area of the state of Texas. As a result of the ccnditions, several smaller power systems purchased shares in the plant, including the TMPA. For a number of reasons, 'dlPA now wishes to sell its 6.2% interest in the CPSES back to TV Electric. On February 12, 1988 TV Electric and TNPA entered into a settlement agreement that provides for the purchase by TU Electric of all of TMPA's ownership interest in the CPSES and also terminates all pending litigation between the two parties (a various District .

Court proceedings in Texas originating from TMPA's participation in the CPSES.

Staff review of the request for amendment concluded that the amendment would not impact on any existing antitrust license conditions in the construction permits or change conditions or activities under the construction permits that would create or maintain inconsistencies with the antitrust laws, in light of the fact that there will be no new owners as a result of the proposed amendment, and TU Electric, the recipient of TMPA's share, it obligated to ex-tensive license conditions, ttaff concluded that the increase in TU Electric's ownership interest in the CPSES from 87-5/6% to 94-1/30% will not significantly impact competition in the north Texas area.

Financial Matters The staff performeo a financial qualification review of TU Electric pursuant to the provisions of 10 CFR 50.33(f) and Appendix C to 10 CFR Part 50. These pro-visions require an applicant to demonstrate that it has reasonable assurance of obtaining the funds necessary to cover estimated construction costs and related fuel cycle costs. TV Electric is planning to finance the cost of purchasin,g the a aeditional interest in CPSES in the same manner as it finances its overall con-struction program, including present and previous financing of the CPSES. TV Electric obtains its construction financing in the same general manner and from the same general sources as do most investor-owned electric utilities. Those sources include primarily funds from operations (internal sources), combined with funds obtained from external financing. TV Electric, being a wholly-owned sub- ,

sidiary of Texas Utilities (TV), sells its cocron stock to TU, wnich in turn issues securities to the public. TU Electric sells its preferred stock and bonds 3

directly to the public. To provide for incediate casn requirements during periods l

between long-term financings TU Electric obtains short-term loans from TU, which had lines of credit with commercial banks aggregating . 0 billion at December 31, 1987.

The financing of the cost of the additionai 6.2% interest in the CPSES is placed in perspective by reviewing TU Electric's successfully completed construction firencing over the past seyeral years ano projected financing for the next several years. Fur calendar years 1985, 1986, and 1987, TV Electric financed total construction expenditures averaging 31.1 billion per year. These expen-oitures were covered by internal sources of cash (from electric operations),

averaging $290 million per year, anc external financing averaging 5954 million per year. A portien of the funds was used to cover wurking capital requirements, but the majority was used for construction, including the CPSES.

Safety Evaluation TU Electric's projected system-wide construction program (ircluding the 94-1/30*.

interest in the CPSES) for calendar years 1988, 1989 and 1970 calls for total expenditures averaging $933 million per year. These projected construction expenditures are in the same general range as actual expenditures for the previous three years.

TU Electric has presented a reasonable financing plan for the aoditional 6.2%

interest in the CPSES that it proposes to purchase. Thus, it has demonstrated reasonable assurance that it can obtain the funds to purchase the interest.

The staff has concluded that TV Electric is financially qualified to acquire the additional ownership interest in the CPSES.

ENVIRONMENTAL ASSESSMENT Pursuant to 10 CFR 51.32, the Commission determined that the issuance of Amendment No. 9 to Construction Permit No. CPPR-126 and Amendment No. 8 to Construction Permit No. CPPR-127 will have no significant impact on the environment. The issuance of Amendments No. 9 and No. 8 is strictly for deletion of an owner from the construction permits and a reallocation of the deleted owner's interest in the CPSES to the lead applicant, TV Electric.

In addition, the staff has determined that Amendments do. 9 and No. 8 to the construction permits involve no significant increase in the amount, and no significant change in type of any effluents that may be released offsite, and that there is no significant increase in individuals' or cumulative occu-pational radiation exposure. The Commission has determined that the amencments involve no significant hazards considerations. Accordingly, amendments meet the eligibility criteria for categorical exclusion set forth in 10 CFR 51.22(c)(9).

Pursuant to 10 CFR 51.22(b), no environmental impact statement or environmental assessment need be prepared in connection with the issuance of these amendments, s

CONCLUSION Amendment No. 9 to Construction Permit No. CPPR-126 and Amendment ko. 8 to Construction Permit CPPR-127 are strictly administrative in nature for the pur-pose of reallocating ownership interest only. No technical conditions have been added or deleted froni the construction permits. The staff concludes that: (1) the proposed amendments to Construction Pernit Nos. CPPR-126 and CPPR-127, permitting the transfer of ownership interest, do not involve a significant increase in the probability or consequences of accidents pre- (

viously considered, do not create the possibility of an accident of a type different from any evaluated previously, do not involve a r.gnificant decrease in a safety margin, and thus do not involve a significant hazards consideration; (2) there is reasonable assurance that the health and safety of the public will not be endangered by construction and operation in the proposed manner; and (3) 50ch activities will be in compliance with the and the issuance of the an,endments will not be Counission's regulations,,,fense inimical to the common de and security or to the health and safety of the public, t

Date of Issuance original date

August 10, 1988;

correction date

August 25,,1988 Principal Contributors: W. Lambe, FTSB l

J. Petersen, PTSB