ML20212P935

Affidavit of MR Edelman Re Ocre 860829 Motion for Continuance of Commission 860905 Meeting & That Full Power OL Not Be Issued

ML20212P935
Person / Time
Site:	Perry
Issue date:	09/02/1986
From:	Edelman M CLEVELAND ELECTRIC ILLUMINATING CO.
To:
Shared Package
ML20212P913	List: ML20212P910 ML20212P935
References
OL, NUDOCS 8609030342
Download: ML20212P935 (6)

Text

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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE. .THE.. COMMISSION In the Matter of )

)

THE CLEVELAND ELECTRIC ) Docket Nos. 50-440

, ILLUMINATING COMPANY, EZ AL. ) 50-441

)

(Perry Nuclear Power Plant, )

Units 1 and 2) )

AEFIDAYIT_ DE MUEFAL B . EDELMAN County of Lake )

ss:

State of Ohio )

Murray R. Edelman, being duly sworn, deposes and says as follows:

1. I, Murray R. Edelman, am Senior Vice President-Nuclear Group, of The Cleveland Electric Illuminating Company ("CEI").

My business address is Perry Nuclear Power Plant, 10 Center Road, Perry, Ohio 44081. In that position, I have responsibility for all areas of the Perry Project, including construction, engineer-ing and operation. A statement of my professional qualifications and experience is attached hereto as Exhibit A. I have personal knowledge of the matters set forth herein and believe them to be true and correct. This affidavit is in response to Ohio Citizens for Responsible Energy's Motion for a Continuance, dated August 26, 1986.

8609030342 DR 860902 '

ADOCK 05000440 PDR

2. The purpose of this affidavit is to summarize CEI's current best estimate of the economic costs which CEI and its co-owners of the Perry Project would incur in the event of a delay in the operation of Perry Unit 1 above 5% power.

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3. Substantial costs will be incurred for every day that operation above 5% power of Unit 1 is delayed. Without even con-sidering the higher fuel costs for replacement power, the added interest costs and the costs to maintain Unit 1 in low power op-erational status will total about $2.2 million for each day of delay. The principal components of this $2.2 million are as fol-lows.

4. Delay in operation above 5% power will result in in-creased interest costs. Until Unit 1 is placed in service, each of the co-owners continues to accrue AFUDC (allowance for funds used during construction). The accrued AFUDC represents the interest costs on the money that has been invested in the plant.

Based upon the actual booked values for AFUDC for each of the co-owners, each day of delay would cost an additional $1.2 mil-lion. The share for each individual company is:

Cleveland Electric $360,000 Duquesne Light 120,000 Toledo Edison 250,000 Ohio Edison 410,000 Pennsylvania Power 60,000 4

These amounts were calculated in accordance with the guidance provided by the Federal Energy Regulatory Commission in 18 C.F.R. S 1.101.

5. Additional delay costs will also be incurred as a result of maintaining the plant in a state of readiness for full power operation. Should issuance of the full power operating license be delayed by the stay sought by Ohio Citizens for Responsible Energy, CEI would continue to keep Unit 1 in a state of operational readiness pending the conclusion of the appeals process. Keeping Unit 1 in lower power operational status would necessitate paying the salaries of plant staff and support personnel (both CEI employees and contractor personnel), maintaining the supplies of consumables, tools and spares, paying the cost of maintenance activities, and conducting periodic testing. The direct cost of these requirements is estimated to be about $1 million per day.

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6. Thun, the cost of a stey in the issuance of an operating licenac for Unii 1 :culd be a r.tnian-sf ?O40 7.1111cn -

.for each day that issuance of the license is delayed. These costs would be borne by the co-ownera, their stockholders and/or their customers.

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%VQh R1rray R. Etelman Subscribed and avorn to before

?.e thf a L day of Sente?.ber M86 f rWs Al J. L$

N6tary Piblic My comission eyci*es:

MICHAEL 8. GM87EIN, A!!:rr.sy N0fAAY PWtuc STATE OF CHl0 Mi temmiss en .ssa nu wasu.o... un..

Bution 147.03 R.C.

F-EXHIBIT A STATEMENT OF PROFESSIONAL QUALIFICATIONS MURRAY R. EDELMAN My name is Murray R. Edelman. My current position is Senior Vice President-Nuclear Group, of The Cleveland Electric Illuminating Company ("CEI"). My business address is Perry Nuclear Power Plant, 10 Center Road, Perry, Ohio 44081.

I joined CEI in 1961. Between 1961 and 1972 I occupied var-ious non-nuclear engineering positions in the CEI Civil and Me-chanical Engineering Department, including Engineering Assistant, Engineer and Senior Engineer. During this period I was a Project Engineer on several CEI fossil plant projects.

I began working on the Perry Nuclear Power Plant ("PNPP") in 1972 as the CEI Senior Licensing Engineer responsible for PNPP NEC licensing activities. In 1975 I was promoted to General Su-pervising Engineer of the Licensing and Administration Section of the Nuclear Engineering Department. I retained my licensing responsibilities and also became responsible for other adminis-trative areas.

In 1977 I was transferred from the Perry Project to the Civil and Mechanical Engineering Department as a General Su-pervising Engineer.

Between April 1978 and April 1981 I held the position of Manager, CEI Nuclear Quality Assurance Department. In that ca-pacity I was responsible for planning and directing the PNPP

quality assurance program. I reported directly to CEI's Vice President, System Engineering and Construction Group.

In April 1981 I was appointed Manager, Nuclear Engineering Department, a position I held until April 1982. In that position I was responsible for PNPP engineering, construction, testing, procedures, records, licensing and cost control and reported to the Vice President, System Engineering and Construction Group.

Between April 1982 and December 1982 I was CEI Division Man-ager, Nuclear Engineering and Construction Division, responsible for all PNPP nuclear engineering, construction, licensing fuel management, and cost administration. I continued to report to the Vice President, System Engineering and Construction Group.

Between December 1982 and April 1986, I held the position of CEI Vice President-Nuclecr Group. I had responsibility for all areas of the Perry Project, including construction, engineering, and operation, and reported to CEI's Executive Vice President.

In April 1986, I was promoted to Senior Vice President-Nuclear Group, my current position. With respect to the Perry Project, I retain all the responsibilities which I had as Vice President-Nuclear Group.

I obtained a Bachelor of Science in Mechanical Engineering from Case Institute of Technology in 1961, and Juris Doctor from Cleveland Marshall Law School in 1965.

My professional memberships include the American Society of Mechanical Engineers, Cleveland Electric Society, and the Ameri-can Nuclear Society.

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