ML18230A804

Amendment No. 40 to Application for Construction Permit and Operating License

ML18230A804
Person / Time
Site:	Harris
Issue date:	08/18/2018
From:	Carolina Power & Light Co
To:	Office of Nuclear Reactor Regulation
References
Download: ML18230A804 (20)

Text

Amendment No. 40 CAROLINA POWER 6 LIGHT COMPANY A lication for Construction'Permit and 0 eratin License General Information 1.

Name of A licant.

Carolina Power 6 Light Company 2.

Address of A licant.

336 Fayetteville Street

Raleigh, North Carolina 3.

Descri tion of Business and Or anization of A licant.

Applicant is an electric utility engaged exclusively in the generation, P

purchase, transmission, distribution and sale of electric energy.

The territory served by Applicant, an area of approximately 30,000 square miles, includes a substantial portion of the Coastal Plain in North Carolina extend-ing to the Atlantic coast between the Pamlico River and the South Carolina

border, the lower Piedmont section in North Carolina and in South Carolina and an area in western North Carolina in and around the City of Asheville.

The estimated total population of the service area is in excess of 2,800,000.

As of December 31, 1974, the Applicant'furnished electric service to approxi-mately 648,000 customers.

Applicant's facilities in Asheville and vicinity are connected with the Applicant's system in other areas served by the Applicant through the facilities of Appalachian Power Company and of Duke Power

Company, so that.

power may be transferred from or to the Asheville area through inter-connections with such "companies.

There are also interconnections with the facilities of Tennessee Valley Authority, Virginia Electric and Power

Company, South Carolina Electric 6 Gas

Company, and Yadkin, Inc.

t

Amendment No.

40 As of December 31, 1974, Applicant owned and operated seven steam electric generating plants with a net capability of 4,578,000 KW, four hydro-electric plants with a net capability of 211,50Q KW and internal combustion generating units with a net capability of 1,136,000.KW.

Including.net pux'-

chased power available on a firm commitment basis, the total system

.capability as of December;.31~. 1974, was 6.,045,500 KW.

Applicant currently has under construction two internal combustion-generating units with a com-

'ined wintex capability of 128,000 KM to be completed in 1975, two 821,000 KW nuclear fueled steam electric generating units to be completed in 1975'nd

1976, and a 720,000 KW fossil fuel steam electric generating unit to be completed in 1978.

4.

Applicant is a public service corporation formed under the laws of North Carolina in 1926.

The names and addresses of Applicant's directors and principal officers, all of whom are citizens of the United States, are as follows:

Directors:

Shearon Harris,

Chairman, Raleigh, North Carolina Raymond A. Bryan, Goldsboro, North Carolina Daniel D. Cameron, Sr., Wilmington, North Carolina Felton J,

Capel, Southern Pines, North Carolina Fulton B. Creech,

Sumter, South Carolina E. Hervey Evans, Laurinburg, North Carolina L. H. Harvin, Jr.,

Henderson, North Carolina Karl G. Hudson, Jr., Raleigh, North Carolina J. A. Jones, Raleigh, North Carolina

Amendment No.

40 E.

G. Lilly, Jr., Raleigh, North Carolina Sherwood H., Smith, Jr., Raleigh, North Carolina H. L. Tilghman, Jr., Marion, South Carolina John B. Veach, Asheville, North Carolina John P. Watlington, Jr., Winston-Salem, North Carolina Principal Officers:

Shearon Harris, President, Raleigh, North Carolina J.

A. Jones, Executive Vice President Engineering, Construction 6 Operation, Raleigh, North Carolina Sherwood H. Smith, Jr., Executive Vice President Administration Edward G. Lilly, Jr.,

Senior Vice President and Group Executive, Raleigh, North Carolina W. J. Ridout, Jr.,

Senior Vice President and Group Executive, Raleigh, North Carolina Samuel Behrends, Jr., Vice President, Raleigh, North Carolina E.

M. Geddie, Vice President, Raleigh; North Carolina W. E. Graham, Jr., Vice President and General Counsel, Raleigh, North Carolina W.'. Kincaid, Vice President, Raleigh, North Carolina M. A. McDuffie, Vice President, Raleigh, North Carolina D. V. Menscer, Vice President, Raleigh, North Carolina A. L. Morris, Vice President, Raleigh, North Carolina J.

R. Riley, Vice President, Raleigh, North Carolina R.

S. Talton, Vice President, Raleigh, North Carolina E. E. Utley, Vice President, Raleigh, North. Carolina J. L. Lancaster, Jr'., Secretary, Raleigh, North Carolina James S. Currie, Treasurer, Raleigh, North Carolina Applicant is not owned, controlled or dominated by an alien, foreign corporation or foreign government.

Applicant makes this application on its own behalf and is not acting as agent or representative of any other person.

Amendment No.

40 5.

Class and Period of License A lied For.

Applicant requests a class 103 construction permit and operating license for period of 40 years.

6.

Descri tion of Facilit and Use to Which Facilit Will be Put.

Applicant proposes to build and operate four pressurized water nuclear reactors as an integral part of a four-unit nuclear fueled steam electric generating plant to be constructed on an approximately 14,000-acre site in Wake and Chatham Counties, North Carolina.

Each unit is designed for operation at a net electrical output of approximately 900 MWe.

The corresponding thermal rating of each reactor is 2785 MVt.

The first unit constructed is scheduled for commercial operation in March, 1981; the second unit in March, 1982; the third unit in March, 1983; and the fourth unit in March, 1984.

Details concerning the plant and its site are contained in the Preliminary Safety Analysis Report (PSAR) constituting a part of this Application.

The plant will be used for the commercial generation of electrical energy.

7.

Additional Licenses A lied For.

Applicant requests such additional source, special nuclear and byproduct material licenses as may be necessary or appropriate to the construction and 1

operation of the plant.

8.

Financial ualifications.

Applicant's annual report for the year ended December 31, 1973, is attached as Exhibit A.

Exhibit A contains a statistical summary of financial statements and energy sales for the years

1963, 1968,

1969, 1970,

1971, 1972, and 1973.

Applicant's response to Dr. Lyall Johnson's letter of September 10, 1971, is attached as Exhibit B.

Applicant's interim financial statements for the three-month period ended December 31, 1974 is attached as Exhibit C.

Attached as'xhibit D is the Prospectus for the Applicant's latest public sale of securities.

Attached as Exhibit E is the most recent Officer's Certificate prepared by CPSL

Amendment No. 40 in connection with the issuance of mortgage bonds.

Information showing interest coverage is found in Exhibit E.

Information showing debt ratio calculations pursuant to the applicable indenture is found in attachments to Exhibit F.

Attached as Exhibit F is the applicant's responses to Mr. Walter Butler's letter of December 5, 1974.

Construction of the nuclear plant will be financed as an integral part of Applicant's total construction program.

Applicant's program, sub)ect to continuing reviewand adgustme~ts, is estimated for each of the years 1975-1984 to be as follows:

1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 TOTAL Table 1 shows construction

$342,586,000 365,107i000 434,999,000 513~793j000 460,849,000 488,878,000 615,544,000 748,487,000 852,145,000 946 061 000 95,768,449,000 costs for planned generating units for the years 1975 through 1984.

This'table reflects costs associated with construction only, and does not include the additional budgeted costs for transmission, distribution, and general plant facilities.

Applicant's present plans for financing the overall construction program from 1975 to 1984 are outlined in Table 2.

The timing, amounts, and types of securities issued may vary depending upon market conditions.

Applicant is able to borrow on a interest.

Bond issues sold in recent short-term basis at the prime rate of years have been rated A,or Double-A.

None of Applicant's outstanding bonds mature prior to 1979.

On February 24, 1975, Moo'dy's Investors Service, Inc. downgraded the bond rating to Baa.

The Company's commercial paper rating was changed from Prime 1 to Prime 2.

-4A-

PRODUCTION PLANT

. 1975 TABLE 1 CAROLINA POWER

& LIGHT COMPANY COMMITMENTS OVER THE LIFE OF THE CONSTRUCTION OF THE SHEARON HARRIS NUCLEAR POWER PLANT (000's of Dollars) 1976 1977

.1978 1979 1980 1981 lO-Year.

1982 1983 1984 Total Purchase Land for Plants Construct Unit No. 2 Brunswick-N 821 MW 1975 Construct Unit No. 1 Brunswick-N 821 MW 1976 Construct Unit No. 4 Roxboro-F 780 MW 1978 Co'nstruct Unit No. 1 Harris-N 900 MW. 1981 Construct Unit No. 2 Harris-N 900 MW 1982 Construct Unit No. 4 Harris-N 900 MW 1983 Construct Unit No.3-Harris-N 900 MW 1984 Construct Generating Units 1985-1991 Air 6 Water Quality Control Devices Additions 6 'Replace-ments of Generating Plants System Total Production Plant 4

7,125 5,100 6,100 7,000.

7,200 4,300 4,000 4,000 10,000 10,000 64,825 17, 622 67,860 99,388 627,164 393,305 17,622 56,557 11,303 28,455 27,799 34,210 8,924 65,133 103,186 109,582 107,509 99,296 92,910 49,548 56,119 54,032 52,049 32,865 29,933 61,115 54,288 52,904 2,320 12,848 57,936 94,528 80,094 66,508 63,104 609270 33,626

471,234 680 8 3 500 38 9 220 96 3 792 73 9 100 67 3 600 70 534 59 9 936 60 9 152 34 > 424 509 9 938 7,344 51,487 199,700 385,473 514,109 640,300 1,798,413 26,186 32,312 29,179 10,055 97,732 6 520 2 664 2 694 2 963 3 260 3 586 3 944 4 337 4 772 5 249 39 989 240 9531 2649 827 332 9209 3809 675 326 9413 3409423 442 9879 546 9881 662 9 659 689 9 973 4 9 187 9470 b

0

0

Amendment No. 40 Applicant's estimate of the cost of design and construction of the nuclear plant, including related items, and for procurement of the initial reactor cores for the four units is as follows:

(a)

Nuclear Production Plant Costs FPC Account No.

320 Land 6 Land Rights 321 - Structures 6 Improvements 322 Reactor Plant Equipment 323 - Turbine Generator Equipment 324 - Accessory Electrical Equipment 325 Misc. Power Plant Equipment Interest (b)

Transmission, Distribution &

General Plant Cost 353 - Transmission Plant Sta.

Equipment Interest

$2,050,757,000 62,192,000 47,775,000 537,369,000 524,565,000 343,465,000 119,166,000

'12,468,000 4650949,000 47,968,000 14,224,000 (c)

Nuclear Fuel Inventory Costs Nuclear Fuel Interest TOTALS 140,867,000 125,693,000 15 174 000

$2~253~816~000

$2~253~816~000

-4C-

TABLE 2 Applicant:

Carolina Power & Li ht Co Nuclear Plant:

Harris Sources of Funds for S stem-Wide Construction E

enditures Durin Period of Construction of Sub ect Nuclear Power Plant (millions of dollars)

Construction Years of Sub ect Nuclear Power Plant Security issues and.

'other funds Common stock Preferred stock Long-term debt Notes payable Total 1975

~105 0

125 29 259 1976

~100 50 125

~27 248 1977

~79 0

150 88 317 1978

~181 100 150

~9) 422 1979

~0 50 300

~33) 317.

1980

~ill 50 150 26 337 1981

~110 50 300 16 476 1982

~208 50 300 10 568 1983

~221 150 300

~16 655 1984

~178 150.

300 79 707 Internal Funds Net income Less:

preferred dividends common dividends Retained earnings Deferred taxes Investment tax credit-net Depreciation

& amortization Less:

AFDC Total Internal Funds TOTAL FUNDS Construction Ex enditures

• 22 47 13 21

~1) 50 51 32

~291

'23 66 11 29 4

63 39 68

~316 27 78 43 32 5

67 54 93

~410 31 93 44 33 10 73 72 88

~510 38 103 42 37 8

83 89 81

~398

~

40 118 42 40 1

94 112 65

~402 46 134 20 51

~2) 113 107 75

~551 82 100 148 168 183 200 200 253 a

53 157 43 63 10 137 116 137

~705 61 188 14 72 0

159 133 112

~767 66 229 10 82 3

180 145 130

~837 262 305 Nuclear power plants Other Total Const. Exp's.

Sub)ect nuclear plant

~139 160

~298 S 87

~172 156

~328

~165

~224 160

~384

~224

~295 152

~447

~295

~231 149

~380

~231 187 159 202 364

~389

. ~523

~187

~159

~96 556

~652

~96

~59 685

~744 h59

~27 797

~824

~27

• Exclusive of AFDC (Allowance for Funds Used During Construction)

The estimated cost by units is as follows:.(All figures in thousands)

(a)

Nuclear Production Plant Costs FPC Account No.

Unit 1 Unit 2 Unit 3 Unit 4 Land Total 320 321 322 323 324 325 Interest 33,775 254,947 131,831 813169 253604 8,171 152,597 84,482 116,829 74,117 28,265 1,256 91,576 1003983 142,312 98$ 253 32,361 1,561 118j694 96,957 133,593 89,926 32,936 1,480 100,347 14,000 2,735 47,775 537,369 524,565 343,465 119,166 12,468 465,949 (b)

Transmission, Distribution and General Plant Cost 353 Interest 9,261 2,639 9,108 2,735 14,426 4,560 15,173 4,290 47,968 14,224 (c)

Nuclear Fuel Inventory Cost Fuel Interest 29,991 3 614 30,939 3 733 33,324 4 040 31,439 3 787 125,693 15.174 Totals 733,599 443',040 The estimated cash flow o'r cost by Unit 1 Unit 2 550,514 unit by years is Unit 3 509,928 as follows:

Unit 4 Land Total 16,735 23253,816 Prior to 1975 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 Subtotal Fuel Costs Totals 72,830 65,133 103,186 109,582 107,509 99,296 92,910 49,548 699,994 33 605 733,599 15,063 29,933 61,115 54,288 52,904 563119 54,032 52,049 32,865 4083368 34 672 443,040 3,212

'80 8,500 38,220 96,792 73,100 67,600 70,534 59,936 60,152 34 424 513,150 37 364 550,514 3,468 2,320 123848 57,936 94,528 80$ 094

'66,508 63,104 60,270 33,626 474,702 35 226 509,928 14, 983 1,752 16,735 16,735 109,556 99,818 185,649 260,026 351 $ 733 308,609 281,050 235,235 153,071 93,778 34 424 2,112,949 140 867 2,253,816

TABLE 3 PLANT CAPITAL INVESTMENT Amendment No. 40

SUMMARY

- UNIT NO. 1 BASIC DATA Name of plant Net capacity Reactor type Location Shearon Harris 900 Wake Count Cost basis:

at start of construction MW e)

(1973 Dollars)

$403 735 e of coolin Desi n and construction eriod Month, year NSSS order placed 4/71 Month, year of commerical operation 3/81 Length of workweek 0 hre.

Interest. rate, interest during construction 8%

Run of river Natural draft cooling towers X

Mechanical-draft cooling towers Other (describe)

COST

SUMMARY

Account Number Account Title Total Cost (thousand dollars)

DIRECT COSTS 20 Land and land rights....................

33 278 21 22 23 24 25 PHYSICAL PLANT Structures and site facilities Reactor plant equipment.................

Turbine plant equipment.................

Electric plant equipment................

Misc. plant equipment..............

~....

Subtotal

. ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~. ~ ~ ~ ~ ~ ~ ~ ~

Spare parts allowance.................,.

Contingency allowance...................

Subtotal..

~ ~....

~,

~ ~..........

~....

143 513 103 886 58 905 18 742 6 961 332 007 63 189 395 196 INDIRECT COSTS 91 92 93 94 Construction facilities, equip't, and services Engineering and const. mg't. services Other costs

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~

~ ~ ~

~

Interest during construction............

Sub'total

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~ ~ ~

Start of construction cost Escalation during construction

(

7

% yr.)

Total plant capital investment

$783/KW) 23 026 31 060 66 937 155 332 276 355

. 704 829 704,829

• Included Above 5B-

TABLE 4 PLANT CAPITAL INVESTMENT amenamenc

~u. ~v

SUMMARY

UNIT NO. 2 BASIC DATA Name of plant Net capacity Reactor type Location Shearon Harris 00 MW e Wake Count Cost basis:

at start of construction 1973 Dolla s 220 17 e of coolin Desi and construction eriod Month, year NSSS order placed 4 71 Month, year of commerical operation 3 82 Length of workweek 40 hrs.

Interest rate, interest during construction 8%

Run of river Natural draft cooling towers X

Mechanical draft cooling towers Other (describe)

COST

SUMMARY

Account Number Account Title Total Cost (thousand dollars)

DIRECT COSTS 20 21 22 23 24 25 Land and land rights PHYSICAL PLANT Structures and site facilities Reactor plant equipment.......

Turbine plant equipment Electric plant equipment......

Misc. plant equipment Subtotal.................

Spare parts"allowance Contingency allowance..........

Subto'tal

~ ~ ~

~ ~ ~ ~ ~ ~

~ ~ ~ ~ ~ ~ ~ ~

~

~ ~ ~ ~ ~ ~ ~ ~ ~ ~

4 097 86 910 53 366 18 907 915 209 195 37 814 247 009 INDIRECT COSTS 91 92 93

'94 Construction facilities, equip't, and services..............................

. Engineering and const. mg't. services...

Other costs 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~

~ ~ ~ ~

Interest during construction............

Subtotal...........................

Start of construction cost..............

Escalation during construction

(=7

% yr.)

Total plant capital investment

$441/KW) 10 978 9 758 37 204 91 576 149 516 396 525 396 525

• Included Above

-5C-

TABLE 5 Amendment No. 40 PLANT CAPITAL INVESTMENT

SUMMARY

- UNIT NO.

4 BASIC DATA Name of plant Net capacity Reactor type Location Shearon Herr'is 900 MW e PWR<

Wake Count Cost basis:

at start of construction 1973)Dollars 227 202

'esi n and construction eriod Month, year NSSS order placed 4/71 Month, year of commerical operation 3/83 Length of workweek 40 hrs.

Interest rate, interest during construction 8X Run of riv'er Natural draft cooling towers X

Mechanical draft cooling towers Other (describe)

COST

SUMMARY

Account Number Account Title Total Cost (thousand dollars)

DIRECT COSTS 20 Land and land rights....................

0 21 22 23 24 25 PHYSICAL PLANT Structures and site facilities..........

Reactor plant equipment.................

Turbine plant equipment Electric plant equipment Misc. plant equipment...................

Subtotal......

~...........

~....

~...

Spare parts allowance...................

Contingency allowance...................

Subtotal

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~ ~ ~

58 557 102 209 66 720 22 358 1 065 250 909 45 071 295 980 INDIRECT COSTS 91 92 93 94 Constru'ction facilities, equip't, and services......,.......................

Engineering and const. mg't. services Other costs

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~

~

~ ~ ~

Interest during construction............

Subtotal

~ ~ ~ t ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~ ~

~

Start of construction cost Escalation during construction

( 7 X yr.)

Total plant capital investment

$506/KW) 12 421 8 163 38 328 100 347 159 259 455 239 455 239

• Included Above

- 5D-

e

Amendment No. 40 PLANT CAPITAL INVESTMENT

SUMMARY

UNIT NO.

3 BASIC DATA Name of plant'et capacity Reactor type Location Shearon Harris 900'ake Count Cost basis:

at start of construction 1973 Dollars 225 385 e of coolin Desi n and construction eriod Month, year NSSS order placed 4/71 Month, year of commerical operation 3/84 Length of workweek 40 hrs.

Interest 'rate, interest during construction 8%

Run of river Natural draft cooling towers Mechanical draft cooling'owers Other (describe)

COST

SUMMARY

Account Number Account Title Total Cost (thousand dollars)

DIRECT COSTS 20 Land and land rights 21 22 23 24 25 PHYSICAL PLANT Structures and site facilities....;.....

Reactor plant equipment.................

Turbine plant equipment Electric plant equipment.......

~ ~ ~ ~ ~ ~ ~ ~ ~

Misc. plant equipment Subtotal Spare parts allowance...................

Contingency allowance..................,

Subtotal 1 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~ ~ ~

62 703 110 013 72 466 22 528 1 126 268 836 46 558 315 394

~

INDIRECT COSTS 91 92 93 94 Construction facilities, equip't, and services Engineering and const. mg't. services Other costs

~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

~

~ ~

~ ~

Interest during construction............

Subtotel

~ ~ ~ ~

~ ~ ~ ~ ~ ~ ~

~ ~ ~ ~ ~ ~

~ ~

~

~ ~ ~

~ ~

Start of construction cost..............

Escalation during construction

{ 7

% yr.)

Total plant capital investment

$ 549/KW) 12 015 10 889 37 172 118 694 178 770 494 164 494 164

• Included Above

Amendment No.

40 9.

Com letion Dates.

Applicant contemplates that a construction permit for the four units will be issued on or before November 1, 1975, that'nit No.

1 will be com-pleted and ready for fuel loading on or about September 1, 1980; Unit No.

2 on or about September 1, 1981; Unit No.

4 on or about September 1, 1982; and Unit No.

3 on or about September 1, 1983; and that commercial operation of Unit No. 1 will commence in March, 1981; Unit No.

2 in March, 1982; Unit No.

4 in March, 1983; and Unit No.

3 in March, 1984.

The earliest estimated completion dates for the four units are September 1,'979 for Unit No. 1; September 1, 1980 for Unit No. 2; September 1,

1981 for Unit No. 4, and September 1,

1982 for Unit No. 3.

The latest estimated completion dates for the four units are September 1,

1980 for Unit No. 1; September 1,

1981 for Unit No. 2; September 1,

1982 for Unit No. 4, and September 1,

1983 for Unit No. 3.

10.

Re ulator encies and Media.

Applicant's retail rates and services in North Carolina are subject to the regulatory Jurisdiction of the North Carolina Utilities Commission, One West Morgan Street,

Raleigh, North Carolina 27601.

Applicant's retail rates and services in South Carolina are subject to the regulatory jurisdic-tion of the South Carolina Public Service Commission, P. 0. Drawer 11649,

Columbia, South Carolina 29211.

Applicant's wholesale rates and services are subject to the regulatory Jurisdiction of the Federal Power Commission, Washington, D. C.

20426.

The following is a listing of the newspapers of general circulation in the Applicant's service area which are considered appropriate to give reasonable notice of the application to those persons who might have a potential interest in the facilities to be constructed by the Applicant:

r 'k'