ML20246K443
| ML20246K443 | |
| Person / Time | |
|---|---|
| Site: | Comanche Peak  |
| Issue date: | 08/29/1989 |
| From: | Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20246K439 | List: |
| References | |
| NUDOCS 8909050472 | |
| Download: ML20246K443 (3) | |
Text
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SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION RELATING TO AP.ENDMENT NO. 11 TO CONSTRUCTION PERMIT CPPR-126 AND AMENDMENT NO. 10 TO CONSTRUCTION PERMIT CPPR-127 TEXAS UTILITIES ELECTRIC COMPANY, ET AL*
COMANCHE PEAK STEAM ELECTRIC STATION, UNITS 1 AND 2 DOCKET NOS. 50-445 AND 50-446 INTRODUCTION By a letter dated May 4, 1989 Texas Utilitics Electric Company (TU Electric) requested an amendment to Construction Pemit Nos. CPPR-126 and CPPR-127 to permit a reallocation of ownership interest in the Comanche Peak Steam Electric Station (CPSES), Units 1 and 2.
EVALUATION, Amendment No. Il to Construction No. CPPR-126 and Amendment No. 10 to Construction Permit No. CPPR-127 authorize the transfer of a 2-1/6% ownership interest in the Comanche Peak Steam Electric Station, Units 1 and 2, from Tex-La Electric Cooper-ative of Texas Inc. (Tex-La) to TV Electric. Issuance of Amendment No. 11 and Amendment No. 10 would delete Tex-La as an owner on the construction permits and increase TU Electric's aggregate ownership to 100%.**
Antitrust Matters All exis',' 7 CPSES owners (licensees) have been subjected to antitrust review.
In addition, extensive antitrust license conditions that apply to TU Electric have been attached to the CPSES construction permits. The proposed reallocation of ownership interest does not provide for a new owner or licensee, only a re-purchase of interest by the lead applicant, TU Electric.
- The current Construction Pemit holders for the Comanche Peak Steam Electric l
Station are: Texas Utilities Electric Company and Texas Municipal Power Agency.
Transfer of ownership from Texas Municipal Power Agency to Texas Utilities i
Electric Company was previously authorized by Amendments No. 9 and No. 8 to i
Construction Pemits CPPR-126 and CPPR-127, respectively, on August 25, 1988 to take place in 10 installments as set forth in the agreement attached to the ap-plication for Amendment dated March 4, 1988. At the completion thereof Tens Municipal Power Agency is no longer an applicant or construction pemit holder.
- The aggregate ownership amount takes into consifieration the presently incomplete i
transfer of 6.2% ownership interest from the Texas Municipal Power Agency to
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TU Electric which the staff approved in August 1988.
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I Safety Evaluation l
2-The license conditions attached to the CPSES construction permit required TU
- Electric to offer ownership access to entities in a specified area of the state
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of Texas. - As a result of the conditions, several smaller power systems purchased shares-in the plant, including Tex-La.
-to sell its 1/6% interest in the CPSES back to TU Electric.For a On March TU Electric and Tex-La entered'into a settlement agreement that provides for23, 1989,
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the purchase by TU Electric of all of Tex-La's ownership interest in the CPSES and also terminates all pending litigation between the two parties in various
- District Court proceedings in' Texas originating from Tex-La's participation in the CPSES.
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Staff review of the request for amendment concluded that a-formal antitrust review is not required in view of NRC's determination that the proposed ownership transfer will not adversely impact the existing CPSES antitrust license conditions, nor significantly impact competition in bulk power services in the North Texas area.
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 Tex-La's share, is obligated to extensive license conditions, staff concluded that the 2-1/6% increase in TU Electric's ownership interest in the CPSES to 100% will not significantly impact competition in the north Texas area.
Financial Matters The staff performed a financial q) qualification review of TU Electric pursu 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.
TU Electric is planning to finance the cost of purchasing the additional interest in CPSES in the same manner as it finances its overall con-struction program, including present and previous firancing of the CPSES.
TU 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 operatiohs (internal sources), combined with funds obtained from external financing.
TU Electric, being a wholly-owned sub-sidiary of Texas Utilities (TU), sells its common stock to TU, which in turn issues securities to the public. TU Electric sells its preferred stock and bonds directly to the public. To provide for immediate cash requirements during periods between long-term financings, TU Electric obtains short-tern loans from TU, which had lines of credit with cosmercial benks aggregating $1.0 billion at December 31, 1988.
The financing of the cost of the additional 2-1/6% interest in the CPSES is placed in perspective by reviewing TU Electric's successfully completed construction financing over the past several years and projected financing for the next several years.
For calendar years 1986,1987, and 1988, TU Electric financed total construction expenditures averaging $1.3 billion per year. These expen-ditures were covered by internal sources of cash (from electric operations) and external financing.
A partion of the funds was used to cover working capital requirements but the majority was used for construction, including the CPSES.
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Safety Evaluation,
TU Electric's projected system-wide construction program (including the 100%
interest in the CPSES) for calendar years 1989, 1990, and 1991 calls for total expenditures averaging 1931 million per year. Ynese projected construction
. expenditures are in the same general *'nge as actual expenditures for the previous years. The annual cost o) i# additional interest in CPSES is a small fraction of TU Electric's recent anc projected annual construction expenditures i
and sources of funds.
TU Electric has presented a r~ asonable financing plan for the additional 2-1/6%
e 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 TU Electric is financially qualified to acquire the additional ownership interest in the CPSES.
ENVIRONMEllTAL CONSIDERATION
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Pursuant to 10 CFR 51.21, 51.32, and 51.35, an environmental assessment and l
finding of no significant icpact has been prepared-and published in the Federal Register on August 29, 1989 (54 FR 35737). Accordingly, based on the environ-mental assessment, the Comission has determined that the issuance of this amendment will not have a significant impact on the quality of the human environment.
CONCLUSION Amendment No.11 to Construction Permit No. CPPR-126 and An;endment No.10 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 from the construction permits. The staff concludes that:
(1) the proposed amendments to Construction Permit Nos. CPPR-126 and i
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 previcusly, do not involve a significant 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 1
proposed manner; and (3) such activities will be in compliance with the l
Comission's regulations, and the issuance of the amendments will not be l
inimical to the comon defense and security or to the health and safety of the public.
Date of Issuance: August 29, 1989 Principal Contributors:
W. Lambe, PTSB J. Petersen, PTSB i
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