ML20202G028

Affidavit of Ta Mcnish Re True & Correct Extracts of 860408 & 0618 Minutes of Meetings.Resolutions Recited Therein in Full Force & Effect

ML20202G028
Person / Time
Site:	Midland
Issue date:	07/08/1986
From:	Mcnish T CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
To:	Atomic Safety and Licensing Board Panel
Shared Package
ML20202G018	List: ML20202G012 ML20202G028 ML20202G049 ML20202G120 ML20202G162
References
OL, OM, NUDOCS 8607150285
Download: ML20202G028 (3)

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9 STATE OF MICHIGAN)

COUNTY OF JACKSON) SS UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD l

In the Matter of Docket Nos 50-329 OM 50-330 OM CONSUMERS POWER COMPANY Docket Nos 50-329 OL (Midland Plant, Units 1 and 2) 50-330 OL AFFIDAVIT OF T. A. McNISH T. A. McNish, being duly sworn, deposes and says that he is the Secretary of Consumers Power Company and that the attached are true and correct extracts of minutes of meetings held April 8,1986 and June 18, 1986, respectively, and that the resolutions recited therein have not since been rescinded but are still in full force and effect.

T. A. McNish Sworn end subscribed before me this 8th day of July 1986.

Notary Publie _

Jackson County, Michigan My Commissic;. Expires December 21, 1986 8607150285 860711 PDR ADOCK 0500 9

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A Extract from minutes of meeting of the Board of Directors of Consumers Power Company held April 8, 1986.

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l Midland Project The Chairman presented the results of the Midland Options Study, including management's recommendation that conversion to a combined-cycle natural gas plant is the preferred option for the Midland facility. The matter was discussed fully.

Upon motion duly made and seconded, the following resolutions were thereupon adoptsl:

3 RESOLVED: That after considering the alternatives outif ned in the Midland Options Study, this Board determines thac'the interest of the Company's shareholders and customers would best be served by a conversion of the Midland Plant to a t

j combined-cycle natural gas plant; and, RESOLVED FURTHER: That the officers of the Company are authorized and directed to take all actions they may deem necessary or appropriate to effectuate the conversion of Midlar.3 Unit 1, contingent upon relief from Condition 5 of the March 29,

,i 1985 Financial Stabilization Rate Order of the Michigan Public Service Commission.

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EX0786-0002A-CP05

9 Extract from minutes of special meeting of the Board of Directors of Consumers Power Company held on June 18, 1986.

Midland Project The entire Midland Project, with the exception of the process steam equipment, systems and facilities located in and about the evaporator building which were abandoned during 1985, has been maintained since the shutdown of construction in a condition which would permit its completion by the Company as a nuclear power plant.

Based on political and regulatory risks, and the Company's current financial situation, there appears to be no reasonable possibility that the Midland Project can be completed as a nuclear power plant. Also, on April 8, 1986, this Board authorized conversion of Unit 1 of the Midland Project to a natural gas-fueled, combined cycle plant. As a result, the nuclear steam supply systems, certain buildings, and other com-ponents of the Midland Project have become unusable.

It is management's recom=endation that the Company abandon the nuclear stes= supply systems and other unusable buildings and components of the Midland Project, including the Midland Unit I reactor building and its contents, the Midland Unit 2 reactor building and its contents, the auxiliary building (other than the control ecwer) and its contents, the cooling tower, and such other components cf the Midland Project as the officers of the Company may identify f rom time to time as unusable.

The matter was discussed fully.

Upon =otion duly made and seconded, the following resolutions were thereupon unani=ously adopted:

RESOLVED:

That the officers of the Company are authorized, in their discretion, to abandon the nuclear steam supply systems and other unusable buildings and components of the Midland Project, including the Midland Unit I reactor building and its contents, Midland Unit 2 reactor building and its contents, the auxiliary building (other than the control tower) and its contents, the cooling tower and such other components of the Midland Project as the officers of the Company may from time to time identify as unusable, all without further action of this Board; and RESOLVED FURTHER:

That the officers of the Company are authorized to take such actions to schedule and carry out the abandonment as, in their discretion, they deem advisable, such as (1) discarding, dismantling or rendering physically unusable the abandoned buildings or components, (ii) offering for sale the salvageable components, (iii) reducing or discon-tinuing to the extent feasible surveillance, maintenance and other similar activities with respect to the components, if any, which cannot be salvaged, (iv) reducing insurance coverage, (v) taking steps to t.arzinate the Nuclear Regulatory Commission construction permits and operating license application, and (vi) making such filings with governmental agencies and others as may be necessary or advisable.

MP0586-0001 A-CP05

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