ML19331B044

Affidavit of WE Keppler,Cpc,Re Facility Capital & Projected Costs

ML19331B044
Person / Time
Site:	Midland
Issue date:	02/04/1974
From:	Keppler W CONSUMERS ENERGY CO. (FORMERLY CONSUMERS POWER CO.)
To:
Shared Package
ML19331B038	List: ML19331B037 ML19331B041 ML19331B044 ML19331B049
References
NUDOCS 8007250743
Download: ML19331B044 (6)

Text

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ATTACHMENT A AWIDAVIT PfATR OF MIC)11 GAM 88.

COUMTY OP JACKSON.

liefore me, the undernigned authority, personally appeared William E. Keacler, who, being duly aworn accortling to law, depoacs and sayst -

1. My name ia Willita B. Kcapler and I am (sployed by Constners Power Ocupany nc Pmject %nneer in charge of ita Midland Project Lepart-ment, which han overall responsibility for the licenaia6, deni6 n, con-struction, coats, actieduling er.d et.u*.-up of the Midland Muclear Unitn .

I have been nanociated with t,v pmject cince IMeember l')d7, firct as Project 1:ngineer and now no Project unager. As cuch 1 ran familiar with all financing arrragements, 041'21 -:ti Dal projected conta for na unita.

2. The original projected capital cost of the Midland Units was three hundred

• forty-nina raill1<.,n ac11aro ($3'49,000,000) . 'The pres-ently projected capital coct of the units is nine hun. ired forty .tillion dollars ($)h0,000,000).

3 The . presently projected ccet of fossil-fired alternatives to the M141nad Units alco greatly exceeds the estisaated cost for such alternatives raade e.t the tizne the Mirtand Units were originally evaluated.

Attached in a table entitled "Midired Plant Alternativec" chow 2ng the 1979 present value, in milliona of doDc.re, of the Midland Unito and various alternativec. The firct coluan chows the cost of the Midland Plant na presently designed. The seccnd co13s:n shows the catimated cost 8007250 7 93

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of the Midland Unite v10wt the crocess steen feature and uti11 ring

~ :.wp natural druft cooling towere nn'd a small storage pcmd rather than the planned cooling mod. The remaining three colmens chov the coct of 7arious fossil-find niternatives, also without the pnxiesa steam feature j and utillr.ing cooling towern for ccodenser cooline. A list of assumptions follovn the table. As the table shown, the lenot costly foscil-fired alternative for an clectric-only plant 10 nlmoat twice na CO8tly ha en electric-only nuclear plant, and incre expensive liy rnore than eight hundred I million dolinre ($600,000,000) than even the dual-purpose nucienr pbuit.

h. The preoently pmjected capital coct for the Midland Units equals $r/>9 pr kilovatt. Thin coat la coc:parnble to the pro',ected capite.1 coats of similar nuclear units ocheduled for initial productica in the period 197t3 to 19ff). 1;naed on estimwec cet forth in the Pinal Environ-mental Statements or Applicants' Kr.tiroc:sent.al Reporta, the cetimated enpital costo, in dollarm per >;11%att, Jor ae.erni of ther.e pinnt,r. wrc a follovn in rtid-1973:

Thiladelphia R1cetric Cc:::pany, $l20(")

Limerick linits Public Service of New !!ampettire, y//(I') l Geobmok linits j Cleveinnd Electric Illuminatir.g Ccmpany, 508(c)

Perry Unita At about this same time, the coat of Midland vna estimated to be about

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$770 million, or about $h7'JfW in 1779 dollars. TNea barring ecope chan6es )

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(a) 21100 MWe units for Hov.1978 c.nd Nov.1979 oyeration. The cost Ter 9"N kW doen not inehtdc the cost of the cooling tecervoir, and $n expnsced .3 na 1(f(8 present worth. AE0 Draft Rnvironmental Statewent, August 1973 :Q (b) 2 1140 MWe unita for 1979-60 operation. Ccet is expresped in 1980 dollara.

Applicant's Environmental Report, June 1973 (c) P 1210 NWe unito for 1979-80 creration. Coct ic expressed in 1980' dollars. -

Applicant's P.avircnumental fteport, June 19'/3 /d

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for the other p)r$te 'inentioned, I wcatld exyect their coste to have c-ncalated by $ to 1% in tbn intervening mmt.hr..

S. In Dupplementol Agreement No. 18, dakd .fanuary 30, Iff/4, to the Cenoral Agreem nt between Concunero Power Ccsepany nna Tbc Dow Cbcmical Company, the ptrtJea igreed on a number of medlijcatJons to t.he General Agrecisent. Among thece changen wo.c the c6reement to execute, on or lefore February 8,15r74, long-tenn contrac.ts for the supply of proccas stents to Dow frcm the Midland Ituelear Unito, for the cupply of electric energy to Dow frra Consumere power Ccanpiny'c integruted electric cyeten, and for Dow to undertake certidn obligations to Corictmerc Power Company respecting the supply of water to Contstnera Power Ccapany's Midland Mac} car pl' ant. These contrnetn have all been ni,7.ed by both pnM.icn.

Flarther depment. nayn not.

L 91111r.t H. Xcooler . . L&

On this 4th day of Februs.ry,1974, before 23, a Notary public in nod for said County,' percoually appeared Willica B. Kraaler, to ::e known to be the come Ierom described ir, and sbo executed the within in-strtment, who acknowledged the same to te his free act cnd deed.

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)(y Ccm!.csion Expires April 20, 1974 l{lP.$

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1CD*J ::D FIJJ;T AI,TECATIVES

, (1979 FItsent Valu.e in $ Millions)

Mid'end Ih: lear Flert Mth~1t Fossil. Pael Plants without Pro:ess -

Midiza3 IMeleer Frecess Steen, with Iir.tural Stees eri eith Cecling Ic ers ,

Flant vith Process Dre.ft Cooling Towrs, end Coal-Firei oil-Fired

- Stes:n & Coelirs Fcnd with Snell stores:- Ford Steen 011-Firg Stee . C e. tired Cycl 3,4 Cepitel Oost ?k6 7c3 533 330 250 Operatin.3 Cost __35L L67 1761 E L333 Tctal 130k 1252 23L6 k303 20 33 (a) The cil-fired elternatires are chova for cenparison purposes crly. Due to the current cil supply sitastien, they are not viable alternati es.

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'fhe followily; te.cmption were mado Jn the prepartition of this exhibit:

1. 'The discount rnt4- ic 9 0% }cr eatnum. We cur 4 parit,on in 'Tubic XI-1 of the Pintd. )2wiro1 mental Statement f or Midl2.nd used B.*/y'. 'rbe use of the hiSher rc.tc penalizco tJac nuclear hiternative rc)ntive to the toppil altt rnativen.

2. For c<sonriscd )ntrysaca, all units hre given is2 00% capacity factor boced on )300 MW clectric <nttput. A cytetem econceic dispatch ctudy weist unc4 for XI-) . 'The 013-tired rdternates wcat1d not be nu2 at an 00% eripacity foetor icerause of their high cont. Ilowever, it in tsp-

).ropriate t<> une 00$ for tal) niternater2, t,ince what is needed rst Mittltoid ic a bacc-Yorded pitu2t with a copccity factor of 00% or better.

3 llent ratco f or tie f oncil nit ernst,3ves ree:

n. His;.h Culfur dortl-Pired fiterc Plant - 90001 Fill /Mf!1

b. Oil-Pired Steta Plant - 8950 iffU/Wh

c. Oil-Pired Ocebaned Cycle Pluit '- 9000 IrrU/Wh 14 Dectsemissioning cocto for the Midland Nuclear P3tg2t hre ectimted to be $60 taillion.

5 'The capitta cost c f tbc natural draft cooling tovern plus atory.e

' pond for the electric-uniy c.sclear e.1 tentative in cact ac u. t..

$45 million.

6. Ocpital costo for the fo::cil units fee:

a. Hidi Gulfur Coa)-P) red P. tem P14mt - $h50/W (includec $85/W fc.r S0g recioval eqalpcent)

b. Oil-Pired Storan Plant - ??'A/W

c. Oil-Pired C<mbined Cycle Plant - $192/W 7 ne ccet of new bidi cuirur coal rupplies it; 7(4/xm'u su 19'th ma is, oncuned to c scalate at yh per r.ntaum. ,

8. Currer.t oil cocto for the <A)-PJred otenin plant and combined cycle plant nre 193r//NDTU tod OOO//MUTU, rec)cetively. It ir, projected

'that thcoc ccetc will eccainte 1% in l'//5, 30% in 1976 and % per annum thererdtcr.

9 'fbe leveuzed coct of nuclcrtr fuet $r 3 0513 red)1s/Wh for Unit 1 and 3.lVeo mills /Wh f or Unit 2. .

10. lut. urn 22ce for the nuclear alternative in at r.tened to bo ?2,049,000 in 1(fl9 and is c.ccalcted at 31, per t.imum. j

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11. O. t. M couts am ta:r.uined to cr.calate: At Df in 1975, 6) in Icf(6, 1,$$ betw:en 1971 tmd If>80 red 3% }nr raamm therca1V r. 'fbe 4

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n. ifuclerar Stcra l'lant - 1.0 millc/hWh

b.  !!Jch Sulfur Coal-Find Otcam )'lant (ine)tden 19 mi))s;/kWh for - 2 5 rei)3s/bth 80p resnoval)

c. Oil-) dred Stetun l'lemt - .I; mills /hWh

d. Oi).Pjred ccabined Oyele P) ant - 1 5 mj ))a/lofb h* af - -

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