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Latest revision as of 00:51, 16 March 2020
| ML19326D135 | |
| Person / Time | |
|---|---|
| Site: | Midland |
| Issue date: | 02/18/1977 |
| From: | Tmeple J DOW CHEMICAL CO. |
| To: | Atomic Safety and Licensing Board Panel |
| References | |
| NUDOCS 8006060697 | |
| Download: ML19326D135 (58) | |
Text
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6 UNITED STATES OF AMERICA gh #
NUCLEAR REGULATORY COMMISSION D
g>Y S 19?.1 W co g h,
o "g.
BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of )
)
CONSUMERS POWER COMPANY ) Docket Nos. 50-329
) 50-330 (Midland Plant, Units 1 and 2) )
i RESPONSES TO INTERROGATORIES The Dow Cheiiical Company ("Dow") submits the following answers to interrogatories 1(b), (d), (g), (i), (j), (1); 2; 3; 4; S and 13, of the NRC Staff as agreed to in the ASLB Hearing on February li,1977.
- 1. With reference to Dow's ' Presentation to Michigan Air Pollution Control Commission" of January it,1977:
- b. Of the $31 million in e~xpenditures required to permit reliable operation of your present facilities, how much has been spent as of December 31, 1976? Provide annual expenditures for the remainder.
- d. Explain in detail the basis for the Dow conclusion that the only practical alternative available to Dow which would allow Dow to meet the emission regulations of the State of Michigan is to eliininate coal as a fuel of the Michigan Division. See page 4 of the Presenta-tion.
- g. In order to eliminate coal as a fuel at the Michigan Division, you state you will need to spend $17 million on plant changes. See page 4 of the Presentation. If Dow were required to make these
- . g f, #
- 8006060 sf THIS DOCUMENT CONTAINS P00R QUALITY PAGES
f 1 2
plant modifications on an expedited basis, please provide estimates of the capital costs if the modifications were required by January 1978? January 1979?
- i. If Dow were required to go to 100% oil as th'e fuel at the Michigan Division by January 1,1978, please orovide the estimated yearly fuel cost through 1985. Also provide estimated yearly fuel costs for Dow's present mode of operation through 1985. Pl ease provide the fuel costs in terms of actual dollars.
- j. Please identify and quantify any other costs associated with going to 100% cil at the Michigan Division in addition ta the reliability and capital costs and fuel costs identified in the Presentation.
- 1. If Dow were required to go to 100% oil at its Michigan Division as soon as possible (before June 1, .1973) and so operate these facilities through 1984, would Dow undertake to replace these facilities with more economical fossil fired facilities on an expedited basis? Explain.
Answer
- 1. b. None of the $31 million had been spent as of December 31, 1976.
The spending schedule for the entire amount is as follows:
1977 1978 1979 1980 TOTAL
$6.7R $9.3R $9.3R $5.7R $31R
- d. The alternatives reviewed fall roughly into three categories:
(1) Install required emission centrols on Dow's existing facilities.
(2) Replace Dow's existing facilities with similar new facilities meeting all air pollution regulations.
(3) Replace Dow's existing facilities with new facilities which utilize new technology and which meet.all air pollution regulations.
f '1 3
The modification of present facilities under category (1) would require more extensive re-engineering to allow for the installa-
. tion of scrubbers and precipitators. Phased shutdowns of several I months would be required for each boiler to complete the installa-tion. Such a program would take nearly five (5) years from formal
. authorization of the project and cost over $100 million. The-
- modifications required under this plan would not extend the productive reliability of the boilers beyond 1984.
. A new facility under category '(2) to replace our present power-4 house operations would cost over $300 million and require at least five (5) years following formal authorization of the project to plan, engineer and construct.
The category (1) and (2) alternatives were rejected for the following reasons:
- i. They could not be completed in a timely fashion, i.e. before July 1,1980 as required by our present agreement with the tiichigan
- - Air Pollution Control Commission; j ii. Since it is Dow's present intention to purchase process steam from Consumers Power in April 1982, it would not be i
- . prudent management to spend the large sums of money involved for facilities which may not operate after that time.
Under category (3), Dow is evaluating several areas of new technology, such as coal gasification, which could potentially replace our existing facilities. None.cf this technology is
- - sufficiently proven at this time however to be considered as a replacement for our existing facilities.
i
- g. July 1,1980 is the earliest date estimated by Caw for the
! Michigan Division to be burning 100% oil. Large heated storage
' tanks need to be constructed in both Bay City and Midland. An i
a , - . - .- - . . - - . - , - - - --.-n, = . - . - -,w- - ,.
1 1 e
- 4 insulated pipeline must be installed between the two facilities (17.5 miles). Four large boilers need to be taken out of service and modified to oil burning capability. Due to tight steam generation capability, only one boiler at a time can be taken out of service. This boiler conversion schedule has to be coordinated with the boiler rehabilitation program, hence the requirement for time. Extensive oil handling facilities (day tanks, transfer stations, insulated piping) need to be installed in Midland. Since the conversion may not be accomplished prior to July 1,1980, the estimates requested in this interroga-tory are not available.
- i. As stated in (g) above, the Michigan Division estimates that conversion to 100% cannot be accomplished prior to July 1,1980.
The costs shown in parentheses are included only for information and in no way indicate Dow's ability to comply with the hypo -
thetical situation set forth in this interrogatory. Projected fuel costs (escalated at 8%) through 1985 are as folicws:
Continue Present 100% Oil Fuel Mix .
E$ R$
1978 (68) 50 1979 (74) 54 1980 (79) 59 1981- 86 63 1982 93 68 1983 100 74 1984 108 80
- j. There are no other costs involved.
- 1. As- set forth in the answer to (g) above, the earliest date for conversion to 100% oil is estimated to be July 1,1980;
f 1 5
e therefore, we have not formulated a position on the hypothetical situation set forth in this interrogatory. We do, however, have a study underway to review the product mix that should be manu-factured in Midland. The results of that study are necessary to determine the si;:e and-type of any replacement facility. The results of this study must be available approximately five-(5)
? years prior to the need to have such a replacement facility on -
- stream.
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- 2. For the purpose of this interrogatory, the steam and electric requirements of Dow to be supplied by the Midland Nuclear Facility should be taken as follows:
l Low pressure steam -
(175psig): 2 million lbs/hr High pressure steam -
(600 psig): 0.4 million lbs/hr
- Electricity -
175 MWe
'If these quantities of steam and electricity differ from the quantities Dow intends to take, please indicate the correct quantities and base '
your response on them.
- a. Assuming Unit 1. commenced operation in 1982 at a facility capital cost-of $1.67 billion, please provide the costs to Dow for i steam and electricity under the present contracts with Consumers.
i
' Please include all costs to Dow under these contracts and provide the data in 20 year levelized form separately for steam and electricity.
Also include actual costs for the first full year of operation. If j a report or study is relied upon in your response, please attach a copy.
i-
- b. For the equivalent steam and electric requirements stated above, i
please provide the estimated costs to Dow for steam and electricity if Dow were to construct its own coal fired facilities for operation by.1982. Indicate the type of facility and type of fuel studied.
Cost components should include capital, operating and maintenance and fuel costs. Please provide the date for the first full year f of operation and in 20 year levelized -form and. provide Dow's justi-
) fication of its return on investment. If a report or study is
[ relied upon in your response, please attach a cooy.
Answer Dow's current contractual nuclear crocess steam reserved capacities e
.were set forth in a formal notification to Consumers Power on November 7, 9
l
, - - , ,- .- , . ~ . , , ,,. ,-- , , . -
f ,
, 7 1974 (copy attached). Those reserved capacities are 2,400,000 pounds per hour of 175 psig steam and 400,000 pounds per hour of 600 psig steam on the basis of an initial delivery on or about March 1, 1980.
When Consumers Power announced new target commercial operation dates of 1981 and 1982, Dow raised the problem with Consumers Power as to whether a subsequent notification was needed under the terms of the contract.
The notification provisions of the contract were waived by Consumers Pcwer pending a resolution of the negotiations between the parties. If negotiations are not to proceed further, Dow will send another notification of a change in reserved steam capacity to Consumers Power.
In the Agreement for Electric Service between Consumers Power and Dow, executed in 1974, Section 4(a) states that the contract demand for service from Consumers Power to-Dow is established at 300,000 kilowatts. In his direct testimony, Mr. Temple stated that Dow's current total electric cemand for the Midland Plant in 1982 is estimated to be between 175,000 -
200,000 kilowatts. Dow has been negotiating to reduce the contract -
demand of 300,000 kilowatts to a lower figure.
Under the Agreement for Electric Service and Contract for Steam Service as they now stand, Dow is obligated to take a minimum of 2,000,000 pounds per . hour of 175 psig steam, and to take, or pay the capacity charge for 60% of its contract demand of 300,000 kilowatts.
It should be noted, h,owever, that whenever Dow made an economic
- evaluation in 1976, it compared the cost of purchased steam and cower under the existing contracts with various Dow alternatives using as a basis a 2,400,000 pounds per hour year average steam demand and a 167 megawatt year average purchased power.
- a. The costs to Dow for steam and electricity under the present
, contracts with Consumers Power, including all costs to Dow under these contracts, is set forth in a 20 year levelized form separately .
4 f*
. 8 for steam and purchased electricity in the attached document "1982 to 2002 Levelized Energy Costs Nuclear vs. Coal." This document previously was provided to all parties in discovery on December 8, 1976. .
Dow's estimated actual costs for the first full year of operation, (assumed to be 1982) for nuclear steam and purchased pcwer are as follows:
- 1. Purchased power (1982) - 31 mills per kilowatt hour.
- 2. Nuclear steam (1982) - $4.66 oer million pounds. This estimate includes cost of purchased nuclear steam plus Dow feedwater and distribution costs, and a-15% return on investment on Dow's equipment involved in the suoply of steam from the nuclear plant. This figure is set out in the attached document
, referred to above, and is assumed to be constant for 20 years because the steam costs are predominately fixed charges based on allocated steam investment plus a 20 year levelized fuel cost.
- b. Dow has not done any studies based on the steam and electric requirements : stated in the first paragraph of this Interrogatory. As previously stated, in doing its recent economic evaluations, Dow has I
made'its comparisons based on a 2,400,000 million pounds per hour year average steam demand and 167 megawatt year average of purchased I
power.
t
(' Attached are documents showing the capital and costs to Dow for steam and electricity if Dow were to construct its own coal-fired facilites for operation in 1982. Those facilities are defined as: -
- 1. Case C - the production of steam and electricity in a conventional coal-fired steam byproduct power plant with applicable pollution control devices.
, r .
- 9
- 2. Case D - the production of steam and electrigity in a gasified coal-fired regenerative gas turbine and package boilers.
In Case C, the 20 year levelized data requested is contained in the document "1982 to 2002 Levelized Energy Costs Nuclear vs. Coal" which was referred to in 2(a) above and which previously has been supplied to all parties. The costs for the first year of 0.oeration are contained in Attachment I to " Comparison of Cow Alternatives for Supplying Steam and Power. to the Midland Plant," previcusly supplied to all parties in discovery on January 27, 1977 (also marked as Mapleton Intervenors Exhibit 26), and also'is set forth in a document entitled " Case C," which is attached.
In Case D, the 20 year levelized data has not been comcuted by Dow.
The costs for the first year of operation also are contained in Attachment I, previously provided, and is set forth in a document entitled " Case D," which is attached.
When capital and cost numbers are supplied to Dow management for Dow-produced steam and electricity, a return on investment is.not included. At various times, however, a total cost at capacity plus a 15% and 305 return on total capital investment has been used to show a sensitivity when compared to other alternatives. As to Dow's " justification" of its expectations on a return on investment, this is contained in Mr. Temple's testimony on cross-examination.
i . .
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/.$lij?$>- DOW CHEMICAL U.S.A.
f f
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. March 19, 1976 t.ucince: oncoa r.cotmo. r.nceuce,n e.cc.to i
4
+
Judd Bacon, Esq.
Consumers Power Company 212 West Michigan Avenue 4
Jackson, Michigan 49201 -
Dear Judd:
In our recent cceting in Jackson, I mentioned to you that as a result of the present , negotiations, Dow believed that the notification provisions in Section 12 of the Steam Contract should be vaived until there t.as a resolution of the points now under negotiation. You will recall that
, there uns some discussion that this notification related to the reserved
. stca:a capacity, but that there was no recl discussion of the point.
! Attached you will find a copy of a letter from J. G. Temple, Jr. to F.uss
.Youngdahl, dated November 7,1974, that providad the notice required under Section 12 at least si>: years before the then announced consercial 7 -operation dates of 1979 and 1980.
The probica that arises is,uhether a j- g-
' setbsequent notification is needed this year nou that the annocaced
' target commercial operation dates are 1981 and 1982. Furtherriore, in light of some of the proposals presently under discussica, the notification
. provisions may become academic.
i Rather than become engaged in a lengthy analysis as to uhether Dou is '
required to notify Consumers in 1976 of changes in the reserved stena capacities pursuant to Section 12 a. (1),12 a. (2) and 12 a. (3) , Dou hereby requests that Consumers vaive~ the cited notification requirementa until there is a resolution of the current discussions. If Consumers does not wish to waive the notification requirements, please let us knou as soon
.of the as possible so that Dow can ec= ply with the above-cited provisions contract.
Sincerely, N
L. F.'Nute
[ Attorney Attachraent
'i cc: J. R. Burroughs, Basic Operations, 47. Building ani.
e .7'Chc?
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THE DOW .C H E M i C AL - C O M P A NY November 7, 1974 -
NN 'd2CH'G^r' 43"o i .
' Mr.-Russell C. Youngdahl
. Senior Vice President Consumers Power Company Jackson, Michigan 49201. *
Dear Russ:
NUCLEAR PROCESS STEAM RESERVED CAPACITIES This letter is a formal notification as required by Section 12, Contract for Steam Service, that Dou is changing the reserved steam capacities.
The Dow Chemical Company hereby notifies Consumers Power to reserve the following quantities of steam for Dow's use:
Reserved Steam Estimated Minimum 175 Pressure Capacity Flow Rates PSIC Steam Demand Flow PSIG Lhs./Hr. Rate -
Lbs./Hr.
, 600 400,000 - ~
175 2,400,000 2,000,000-i These quantities are to be reserved cor aencing with initial 4
delivery, to be about March 1,1980, of commercial steam to Dow. They will apply un til revised by a subsequent notice.
i This letter supersedes Dow's previous notification dated
" e 20, 1969.
truly i
Your.}\ '
1
,sf)hl (
J. G. Temple,ir.
G neral Manage [jr t\
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1982 TO 2002 LEVEL 26ED ENERGY COST :
NUCLEAR VS. COAL .
New Ohio Coal Process Steam Nuclear'. By-Product Power Plant
. Steam 0 900 Load Factor, Year Avg. MQ/Hr. 2400 2400 Power G 90% L.F., Yr . Avg . 14W 167 167
- Steam Cost (inc. Dist, & FW) :
~
_$/My 4'.41 2.60 92,720 54,615 MS/Yr.
Powcr Cost
$/KWil .046 .046 67.,291 67,291 MS/Yr.
- Total Cost (Steam & Power) 121,906 NS/Yr. 160,019 Dow Capital MS (New) 35,282 318,197
- Penalty MS/Yr. Over Nuclear - Cost + "0" ROI on New Dow Invest. (38,113)
Cont + 152 ROI, MS/Yr. 165,311 169,636 y Penalty MS/Yr. Over Nuclear - Cost + 15% ROI on New Dow Invest.
4,325 Steam Cost (inc. Dist. & FW L
.I57. ROI on New Dow InvcsE.
S/M5 4.66 4.07 MS/Yr. 90,020 102,345 Ohio Coal at $2.41/MM BTU (lovelized value starting with $1,62 in 1902, escalating 6t/yr. -
assuming a discount rate of 11.5%)., .
Power atfS 046/KWH (lovelized value starting with'$.031/KWH in 1982, escalating 6%/yr, assuraing a diccount rate of 11.5%).
$1.10/ttM DTU nuclear fuel 20 year levelized cost assuming a discount rate of 11.5%.
Nuclear steam adjusted for $1.67 Dillion nuclear plant investment'.
- Dook cost assuming 30 year straight line depreciation' on Dow capital (new) .
J. R. Burroughs
9-d
. CASE C PP.0 JECT i0.: 291-75 1.0 CATI 0i!: liidland DEPARTi4EilT: EC0:1. EVAL.
CAPACITY: 21024 !!i4 LB/YR EVALUATOR: JLS
% DATE: 10/3/.76 STEAil & POWER - C0AL FIRED - 1932 -
B!.SES:
- 1. 2400 !i lb./hr. steam - includes 30 lb. ster. .
2.167 iN power.
- 3. Four uni t plant.
PLANT A?l0 TOTAL COST ESTIllATE '- 1902
!) $/YR.
.3116 '
LI!'.EST0?lE I 1489 ,
C0A).-}!i'S .
_54842 TOTAL' RAU IMTERIALS 594?7 OPER. & iMIllT.
26829 DEPilECIATIO?! - 30 YR.
_8805 TOTAL PLA?!T COST 95092 CAPITAL sui:?MR7 - 1982 11 $ CAPITAL l'EW D F C 291291 TOTAL D F C 291291 TOTAL A F C + 11 C P
_24702 TOTAL BULK liFG.
315993
(,
O
CASE' D PROJECT 110. 302-76 -
LOCATIOM: Midland DEPARTMEtlT: ECON. EVAL.
- CAPACITY
- 21024!@lLS/YR EVALUATOR: JLS 4 DATE: 10/8/76 GAS TURDIIES 1982 BASES:
1.1932 Cost & Capital .
- 2. Produce 2400 $ lb./hr. steac: & 157 tr.! power.
- 3. Fuel is gasified Hi S Coal .
PLANT AtiD TOTAL COST ESTINATE - 1932 11 $/YR.
C0AL - Hi S ~
58871 FEEDUATER 3116 TOTAL RA'.I HAiERIALS 61987 0?ER. & IMIrlT.
26120 DEPRECIATION - 30 YR. 8200 TOTAL PLAflT COST 96307 CAPITAL SU?: MARY - 19'82 il $ CAPITAL NEH D F C 273478 TOTAL D F C 273478 TOTAL A F C + U C '23531 TOTAL BULK MFG.
297039 l
e 10
- 3. In Dow's response to Intervenor's Interrogatory 10, Dow indicated that a fossil fueled facility to reolace its current facilities could be constructed by 1981 at a capital cost of $300 uillion.
- a. Please provide in reasonable detail the basis for these schedule and cost projections. If reports or studies were relied on, please attach a copy.
- b. Please provide the estimated costs to Dow for steam and electricity if Dow were to construct the facility described in its Answer to Interrogatory 10 by 1981. Indicate the tyoe of facility and type of fuel studied. Please provide the data for the first full year of operation and in 20 year levelized form and provide Dcw's justification of its return on investment. Cost components should include capital, operating and maintenance and fuel costs. If reports or studies were relied on, please attach a copy.
- c. Provide the life of plant 1981 present worth cost of the $300 million fossil fueled facility indentified .in response to Interrogatory
- 10. Ccst components should include cacital, onerating and maintenance and fuel costs.
Answer
- a. Dow's response to Intervenor's Interrogatory 10 was based, in part, on cost and schedule information supplied to Dow by Black &
Veatch, consulting engineers, on December 13, 1976. The schedule and cost projections that were supplied to Dow are attached, along with the covering letter.
- b. Dow has done no studies on the estimated costs to Dow for steam and electricity if Dow were to construct the type of facility described in the December 13, 1976, report frcm Black & Veatch.
i , .
J 11 l'
- c. Dow has not evaluated the life of the facility described in the Black &'Veatch report of December 13, 1976, in the manner stated in this Interrogatory. Dow has, however, performed a discounted cash j flow study for the facility described in " Case C" (included in the 2
answer to Interrogatory 5), a similar facility. The 20-year
~
discounted cash flow study for Case C, which assumed costs (excluding depreciation) escalated at 7% per year, is summarized as follows:
3 Millions of Dollars Net Present Value
, Cost Escalation 7j!
Discount Rate gj! 12%
! Case C -904 -757 i
$ $ h f
1 4
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4
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BLACK & VEATCH TEL.(913) oG7 aoCO CONSUt. TING ENGINEERS TELcx 40 0263 1500 M c A DOW LAKC PAR KWAY masuno aooncss; e o. aos wo. esos KAN$AS CITY. MIS $OURI G4114 The Dow Chesical Company December 13, 1976 Midland, Michigs.n 36V Project 7422 New Three-Unit Coal Fired Plant The Dow Chemical Company 256 Euilding Midland, Michigan 4S640 .
Attention: Mr. Russ Mil'er l
Gentlemen: #
As you requested, we arc mailing today first class, special delivery, six copies of the additional cost and schadule infernation which you. requested by telephone on December 9, 1976.
In the interest of expediting delivery of this additional information to you, three copies are being mailed to your home address and another three are being sent to your office. .
,C- ,
The following information is attached to this 1cteer.
- 1. Capital Cost Esti= ate for construct + .n of a neu threc-unit coal-
\,firedsteamandelectricproductionplant. The three-unit
- facility would have a process steas ccpacit/ of 2,400,000 pounds
} per hour and an electric generating capacity of 175,200 KU.
- 2. A construction schedule for the threc-unit plant. This schedule is based on co nercial operation of the first unit in Decenber, 1979. The second and third units would become operational in June and December, 1930, respectively. It is believed that this
, staggered construction schedule vill be core econonical than sinultaneous construction of the three units,
- 3. A cash flow estiasta based on the capital cost estimate and the proposed construction schedule.
The capital cost estimate is based on Septe ber 1976 prices. This is a cocparable price base to the one used in the report for the reconstruction of South Side Feuer House uhich is also being nailed today.
/^
- 0 LACK a yEArcH 11-b The Dow Chemical Company December 13, 1976 Attention: Mr. Rucs MiIlcr With reference to the report addressing the reconstruction of South Side Power House, " Report on Capital Cost and Impletantation Plan for the Reconstruction of Steam and Electric Production Facilitics at South Side Power House", you uill notice a present day cost savings of approximately
$14,000,000 if the new facility vere built in lieu of renovating South Side Power House. The savings is prinarily due to the cost of installing three steam generators in lieu of five staan generators. This savings is reflected in the cost of the secan generators, nachanical equipacnt, cicetrical equipment and uiring, and controls and instrumentation.
In addition, you will notice that the estinated escalation is considerably less than for the nau facility ($42,913,000) as cenpared to the South Side Power House reconstruction project ($68,304,000). This is due to the differences in the proposed construction schedules.
We have discussed with you the fact th'at the attached estimate for a new power plant includes coal unloading and certain water treatment f acilities which are not included in the reconstruction of South Side Power House.
The cost esti=ates are broken down to a degree that will permit you to make cost comparisons on any basis you desire. Also, you have a separate report on the cost of coal unloading and yard facilitics for the South Side Power House.
A Wa ould ba very interected in previding design and project field engineering management services to you in connection with either this new pcuer plant development or the renova:1cn of South Side Power House if you should decide to proceed uith either of these projects. We have qualified enginects and project manage:ent staff availabic to start uork immediately on any such project.
We vill be glad to discuss any to==ents or questions you may have regarding the informatica attached to this letter at your convenience.
. Very truly yours, BLACK & VEATCH h V 'q%
JKK:mcv . K. Kintigh Attach =ents cc: Mr. D. L. Knighton Mr. P. G. Davidson C
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=
Year Ouarter Cash Flotr S 1977 1st 1,306,000 2nd 2,613,000 3rd 3,919,000 4th 5,226,000 1978 10: 7,839,000 2nd 10,452,000 3rd 13,065,000 4th . 20,903,000 1979 1st 20,903,000 2nd 31,355,0C0 3rd 31,355,000 4th 31,355,000 1980 1st 26,129,000 2nd 20,903,000 es 3rd 15,678,000 i 4th 10,452,000 1981- 1st 5,227,000 2nd 2,613,000 Total 261,293,000 e W
*\
. 12
- 4. a. Provide the yearly coal costs used by Dow in developing its responses to 2(b), 3(b), and 3(c) above. Provide the basis for those coal costs and any escalation assumed.
- b. Provide the yearly nuclear fuel costs used by Dow in developing its response to 2(a) above. Provide the basis for those costs and any escalation assumed.
Answer
- a. The yearly coal costs used by Dow in developing its resconse to 2(b), the bases for those coal costs and escalation assumed were:
Bases: 1. High sulfur, Eastern coal.
- 2. Delivered in unit train loads.
- 3. Starting with a base crice of $1.02 cer million STU in 1976, and escalating that price at 8% oer year through 1982, the price used was $1.62 per million BTU.
- 4. An escalation factor of 6% oer year then was used to determine the 20 year levelized fuel costs.
Millions of Dollars - 6% oer vear escalation Case C Case D 1982 (1st year of operation) $ 55 $ 59 2001 (20th year of operation) $166 $179 The yearly coal costs used in the discounted cash flow study used in the answer to 3(c) was $1.62 per million BTU in 1982, the same base price used in 4(a) and 2(b). However, this study used an escalation factor of 7% per year as follows:
~ - _ _ -.- -_.-
13 i* Millions of Dollars 7% cer year escalation Case C Case 0 1982 (1st yr. of operation) $ 55 $ 59 2001 (20th yr. of operation $199 $213
- b. Dow has not attempted to make an independent evaluation of s
projected nuclear fuel costs. Instead, it has relied upon Consumers Power to provide that information to Dow for use in Dow's economic evaluations. In its answer to 2(a), Dow used the last nuclear, fuel unit cost estimates provided to row by Consumers Power. Those i are: 4
- 1. 20 year levelized nuclear fuel costs beginning in 1982 - $1.10 per million BTU. Consumers Power used a 5+% per year escalation.
- 2. 1982 nuclear fuel cost - Sic cer million BTU.
- 5. Please provide in chronological order beginning January 1,1976:
- a.
A listing of any studies made by or on behalf of Dow regarding economic comparisons of nuclear steam and electricity for Dow from { the Midland Nuclear Facility versus steam and electricity from
! alternate generating sources.
b_ For each such study, provide the substance and conclusions of-the study. i a g -- - - - - -, y g -,.-97 -,-p --y y-y--
, 14
- c. If such studies were formalized in memoranda or reports, attach
- copies of all'such studies.
Answer All of the studies made by Ocw in 1976 essentially are an update
- of the last formal study done .) Dow in the Fall of 1975, which was .
based on a cost estimate done by Black & Veatch in April 1975.
- a. 1. August 11,1976 " Summary - Nuclear Advantage Over Alternate
) Dow Process Steam-By Product Power Plant"
- 2. September 2, 1976 " Case A"
- 3. September 3, 1976 " Case B"
- 4. September 3, 1976 - 1982 to 2000 Nuclear Steam + Purchased Power Costs and Dow Process Steam-Byproduct Power, Ohio Coal Power Plant Costs"
- 5. September 23,1976 "1982 'lbrough 2000 Nuclear Steam +
'. Purchased Power Costs Dow Process Steam - Byproduct Pcwer, Ohio Coal, Pcwer Plant Costs and Nuclear Steam + Dow Gasifier - Gas Turbire Power Ccsts"
- 6. September 23,1976 "1902 to 2002 Levelized Energy Cost Nuclear vs. Coal"
- 7. October 4,1976 -' " Purchased Steam and Power From Consumers Power Co. vs. Self Generation By Dow 0 Zero 5 R.0.I.B.T."
- 8. October 8, 1976 " Case C"
.9. October 8, 1976 " Case D" j 10. November 5,1976 " Total Cost Estimate"
, 11. November 10,1976 " Analyses Dcw vs. Consumers Nuclear
- Advantage Estimates"
- 12. January 6 -1977 " Case E"
+
- 13. January 13,1977 " Comparison of Dcw Alternatives For Supplying Steam and Power To The Midland Plant" 4
- b. - A copy of the substance and conclusions of each study is attached.
y y, y r- y--- --+- - - - - -g- -w,- ,,g ,- e- -----c- - - , - y , , --rem -- w. y+. 3ce ogw c-we eet +=w
4 . . 15 4 .
- c. If such studies were formalized in memoranda or reports, a copy is attached.
a i. a . I a i e I h
- ,s ,
SUEIAP.Y NUCLYAR ADVANTAGE OVER ALTER?itsTU DOX PROCESS STEAM-BY PRODUCT POUER PLANT NUCLEAR ADVANTAGE, MILLICNS S PER YEAR Ohio Mich Su R ur Coal _[:cutcru Low15Seliur Coal "0" 15 't, 3 0 *;. "O" ,
?, 30L R.O.I.* 3.0.I. R.O.l. R . O. I . R.O.I. R.O.I.
1982 Nuclear Steam 2,4 00M!/IIr . (43) (2) 39 (13) 23 59
** -4G-Process Stcan 403) -G9- -iO?t- --l6-3, 6 4 SS1? /ilr. (38) 23 85 10 63 119 Process Steam -414} -113- --( 2 4 -)- -%- - 5 i
Bases
- 1. C.P. Co. 4/11/75 estimate of 1982 nuclear steam and power costs. (Revised for $1,730i1 invest.)
- 2. IIydrocarbon's Dept. !!ay-1995 (June, 1976) report, Coal Del. O Midland 1982 Western & Ohio Coal 9 $n:40/:2iBr1U- (Western 9 $2.G5 & Ohio O Sl.G2.
Purch. Power Costs: (37 Mills /XWII) in 1982. 3.
- 4. 79C/I: BTU nuclear fuel cost - C.P. Co. 1983 c.st. (not 20 year levelized).
- 5. Nuclear plant investment 0 $1,730,000,000.
*"0" R.O.I. is book cost accuming 30 year straight line depreciation.
** Based on C.P. Co. 4/11/75 Nuclear Plant estimate of $1,400,000,000. (Revised' for $1,730E1 invest:aer.t)
J.R. Burroughs 8/6/76 8/11/76 Reviced .-
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15.d CASE a 3. P;:0;ECf r0. 220-75 DEPARTMEilT: EC0fl. EVAL. L0cnIO:1: riidland CVALUAiOR: JLS g CAPACITY: 2102f, C; LB/YP. DATE: 9/3/76 CAS TUR3I!!ES 19P.2
.L._.' 5 E S :
l . '. 2 02 Cos*. : Ccpi tal . 2.' Purch. i u:laar stean 1902 PLAi!T A?:0 TOTAL COST ESTii' ATE - 1902
}l$/YR.
COAL 'Hi S 19955
.t TOTAL RAW ttATEPelALS 19955 OPER. T. i!AI!1T. 15599 .
D:~PRECIATIO?) _5000 TOTAL BULF COST 40564
- f. . u c t. 3 r's,,9 % 7, 4 W
I}J32 '!" CAPITAL SUF. MARY - 1982 M $ CAPITAL i:EW D F C 100003 TOTAL D F C 100003 TOTAL A F C + M C 9239 TOTAL BULK !!FG. 109239
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- 1. 210';: /Hr, year a. trap 90 '. leac f aci.or, proces; ',teca.
- 2. 1CT s , yu r averag!. 93.T lod factm prcatss pon-;e - purci:asec v;ith .: lcar stor, or get.walad in IDa po'.#r plan!.
- 3. 1902 initi.:1 dalincy o.P nacl: . stem or initial opacation of '
Da.i p...er plant. ii . 7;;/,7w escalatio. : purch.M0d pwe.', coal, cperating and taintenance COSis.
- 5. 110:/7 STU, 2.0 year levelized nu: lear fuel cost beginning in 1932, i
Consu ars Power Co. 4/76 esti.:cte.
- 6. Midiced nuclear plant investcent 0 $1,6703, Consunrs Pcuer ca.
8/76 estinste.
- 7. Purchased pcwer, 31 cills/rce.h in 1982.
15-f 1902 - 2000 INCL EAR STEAM - PiiRCilASED POWCR COSTS 18 y:::rs total bont costs to user + 15 '.' R . O . I . c,n new Dco. nucinar supper: facilities i n v e: tne n t----- $ 3, G 58. 5 II Dou nuc l: a r suppor t f aciii li :s in ve s tmen t--- ------ t--$ 35.3 s 1982 - 2000 DOL' POWER PL A"i COSTS 18 years total book costs to user + 15:: R.0.I. o n n e r. D o w p o u e r p l a n t - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - $ 3 , 9 7 8 . 8 II l'eu Dow power plant invest. cont----------------------$ 315. G II I. 1982 - 2000 lhcl ea r S tean: + Dow Pover (Coal gasification - Gas Turbines), 18 years total boc!: cost to user + 15: ROI on n eu Dow powe r f a c il i ti e s
. -------------------------$ 3,5 5 6. 7 II
!!cu Dow Pov:cr. plant investment----------------------$ 109,o Ji
( J.R.D./J.L.S. 9/3/76
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15-i 5. 191!2 TiiCOUCH 2000
,....,7~.,,,
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,93 P!tOL*j:5 3 S 72 A? ;- L*y_.'3' Ojf !C T' P C:: .: . , OHIO COAL, PO:751: PL7i?T co3T!;
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_.. C o, <. . .:.-___ n . ". N .S. 2 r 00710/lir . your ./amga, 900 loaf f actor, proca.as s teert. 2 1 G 7c;;7, year a corn;;e, 90t load factor procasr powc:. - purchased tritle nuclcer she n or go:inrated 11 Dr.sw power .olanc. 1982 initial delivery of nuctenr sacam or iriiticI operation of De p: ::.r islcat.
'. 70/ year escalation: purchased pmccr, coal, operating and Linin t e n C.C O COGtS.
- 5. Cor un.:crs PO*. ar Co. 4/7G cscir tic of nuclear fuel costs as incurred, 1932 - 2000.
I 6. Midland naclear plant invere mnt 9 $1,G701, Consemers Power Co. 0/75 entine.t.o.
- 7. Purchased po'.,nr, 31 mills /ID.th in 1932.
J.R.D. & L.S. 9/23/7G
- 5 15-j 1982 THROUCH _2000 NUCLF:A:: ST CA:1 4- PUlCim3MD POMER COSTS b 19 years total book cost to user "0" It.O.I. _
on new Dos nuclear nupport f acilitics inves tmen t--------- $ 3 , 5 2 ; 19 years total book cost to usnr + 15% R.O.I. _ on new D r. nuclear support f acilities inves tment .------- - $3,622M 19 s earn total book cost to ucac 3 0 ". R . O . I . en bcw Dow nucicar :upport. f acilitics investmen t -- ------ $3,722:' t:aw nuclear support fe:cilitics in V C '. tme n t- ----- --- -.----- - S 3 551 1.332 THncini 2000 DO~i PONC PLMT COSTS. .
.19 yearn total book cost to uiier "0" R.O.I. _
o n neu Dow power p l a n t ------- - -------- ---------- - ------ -- $3,074M i 19 years total book costs to user - 15% R.O.I. _ o n n ew D ow powe r pla n t- ------ - - ------------------ -- ----- $3,979M l'9 years total book coctn to user + 304 R.O.I. _
. on n ow Dou powe r pl a n t -- ------------------------------- --- $4,334M
!!cw Dow power plant invc:.itment--------------------------- $ 310E
\
1982 THROUGH 2000 NUCLEAR STU.51 + DON POM"2 (COAL GASIFICIRION GAS TURBINES 19 yearn total book costs to user "0" R.O.I. cn new Dou power facilitics---------------------~~------- $3,14SM 19 years total book coats to user + 15% R.O.I. , on new Dow power f ac ili tics------------------------------- $3,559M 19 years total book costs to user + 303 R.O.I. on new Dow power facilitics------------------------------ $3,9705 Nou Dou powcr plant investment--------------------------- $ 1C9@ Dow nuclear support facilities investmen t---------------- $ 31M To ta l im e n tmen t ----------------------- $ 14 6 ( 9 J.R.B./J.L.S. 9/24/76 I
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CASE C 15-n g' PROJECT im. 291 76 DEPARiliGiT: ECO:t. Lyal. LOC /.TIO:i: ;;iriland EVAllIAT0ft: JL5 cap l.C I TY: 21024 171 LC/YR DATE: 10/8/76 ( STC/.M l. PO'..'70 - COA 1 FIP.CD - 193?. 0AS{S:
' . 2400 M lb./hr. steau - includes 30 lb. stec:.,.
- 2. I 67 M'l po.m .-
- 3. Four uait plant.
PLANT AND TOTid. COST EST!!nTC - 193?
!! $/YR.
FEED';ATER 3116 LIMESTO.'!F 1489 ( COAL - ili S 54042 TOTAL PR.-l. MATEP.I ALS 59447 OPER. & l'.AIi!T. 26039 DEPRECIATIO:1 - 30 YR. 8805 TOTAL PLAliT COST 95092 CAPITAL SU:l'MRY - 1982
!! $ Cf.PITAL llEl! D F C 291291 TOTAL 0 F C 291291 TOTAL A F C + !! C 24702 TOTAL DUL:' MFG. 315993 i
I t l l
- CASE I5i 9.
;>ROJECT fio. 302-7f. derAP,TMri!T: ECO:!. EVAL..
LOCATIO:: it i dl a::d EVALUATOR: J 1. S C/WACIfY: 21024 I;;; LD/Y;: DATE: 10/0/76 CAS TUiP.1 :ris 190
.M..S E.S..:
- 1. 1902 Cost & Capital.
- 2. Pro:iuce 2400 :: lb./hr. ste.r T.15/ !L: pac:a r.
- 3. Fuel is tjasified Ili S C.vl PLA:IT ;J:0 TOTAL COST [.STll'.U2 - 1952 it S/YR.
C0AL - Hi S 50871 ( FEED'. AT.E!! . 311
.-----.6-TOTAL ILY.I f:ATERIALS 61987 OPEri. & luiUT. 26120 DEPRECIATIO.1 - 30 YP..
_8 2_0_9.. TOTAL PLN!T COST 95307 CAPITAL SU Wi(Y - 1922 1: $ CAPITAL l'EU D F C 27357P, TOTAL D F C 273478 TOTAL A F C + U C 23531 TOTAL DUL: MFG. 297003 (
15-o i O. . TOTAL COST CSTIMATF
-s 4 DF.T.O.4!P TIC:! 0F CASIS:
A. Uc .cd on l'icck t, Vea t ch Study (190% cvr.t rec .) Esca lair.el f rc:1 lhf. Int raci
?H lb/hr rtoas.: to 167 l.! 4:nd 2. f.71 lb/hr s cc e .:, by J. l'o r roug h s .
Fonr unit cual fired noilers ui t cr. traction steam turbines, 99+% electro-stet.ic prc:1pitator end S02 scru%tr. Includen e ;n t he,nd l ing , u,:t er 12 - .
- .a t , ::;h and sul Tct e disposal, boiler fccd u .t c r, of fices, e l.:ct r i u l , co.s'.rol i ur . t ru.9::n t t:Lian, enginersine;,
i r.t e res t . .: r i ne' cons , u. t i on , f a c t c. t y c :: .%.1, inventory ::sst. v:orking ccpit:1, and coal G. i'l i ne L l'c.c.r so , "gu ? s t ir o t e" o ' l '..o r. t est re,cnerr.tive c:c . turb!nc s with coci prcpr.re t io.1, cc:.1 9 . i f i : : t i nr. cod li2 raiova l fac i l i t i es . Includes t. al handlir.!:, water t cc c tr.un t , csii t.nJ sul fur disporai, brailer feed water, offices, electrical and control instronentation, engin<cring, interer.t est during coa:tructien, ccxiliery oil fccd facili tics, factorf cxpensc, torking enpital cad cocl in/en; cry cor.L. Cor.tr. escricted to Ir;32 ut.ing C.5% c.calation rate to conforia to escalatica procedure used by J. Eturreaghr. (di TTerent irc.a. custo'eary Dow procedure). C. Sr.ne a: "i!" plus pathaya ballerr and supporting coal casificetion facilities to produce 1.2It Ib/hr of procct.s stu:n. o AVEPj.rE STEnjLL FO'<!ER CirTPUT ASSU.! :n t.PPP.DXlMATELY E33 /.VA!! A3 f LI'iY OF EQUl?!!'UT A D C
. Proccss Steam 1:00 355 355 355 l Lb/llr
. 150 1330 635 1330 25 735 150 ,13rg Total 2403 1200 2400
!!ct rewar IP./ 167 171 171 Tonil Cost il$ 1932 315 205 297 Accuracy of Estimate la' t 1253 125%
Possible !.ini:aua 300 15h 223 - Poss ible l'.a>:imum 337 256 371 Po .: 1 L . I'. l i n e
! En rgy Plannir.c & Devalec :ent 256 illd.. J nr //- $ .y t'
15-q !!* ANALYSES DOU VS CC';SUMER flVCLEAR ADVA;iTAGE ESTDIATES 2400 M#/hr Stean & 167 M'.I Power Year Avera9e Process Uee
- 0:: car Steam T. Purchased Pouer Vs Dow Steam - By Product Po.;er, Coal Pcuer Plant C_C . COST Eiil 31.10/R BTU (end 197F) x SC/ year escalation (5 years) = 1.62/R BTU (1982) 1932 to 2002: $1.62/R BTU x 6%/ year escalation = $2.41/R BTU, 20 year levelized cost, 11.5", discount rate. i Consumars 21.23/R STU (end 19_76) x 127/ year escalation (2 years) x 10:/ year escalation (3 years) = $2.05/ci BTU (1902).
1982 to 2002: $2.05/R BTU x 97, year escalation = $3.91/5 BTU, 20 year levelized cost, 15% discount rate. AT.ULL FUEL COST (20 YEAR LEVELIZED), DOM P0HER PLANT C;.nsumers $3.91/!i BTU, 20 year levelized $140 x 106 /yeai-
- Dau $2.41/5 CTU, 20 year levelizcJ 82 x 106/ year Di f ference $ 58 x 100/ year C0"5UMER fi'JCLEAR ADVAiiTAGE ESTIMATE 20 Year Levelized Costs Millions $
D:.i Powar Plant 233
- cclear Steam & Purch. Power 171
- uclear Advantage 62 Adjust for Ocu Coal Cost Estimate (58)
- .uclear Advantage Adjusted for Dow Coal Cost Estimate 4 C'..l f;UCLEAR ADVAt!TAGE ESTi!MTE 4.3 i
- J. R. Currou;F.s l 11-10-76 9
1s.r \L. CASE C Pi 0JEC1 1:0. 103-77 D7PARTME:!T: EC0!!. EV,'.!. . Lo:ATIO:; Ilidland EVALUATOR: JLS ( (APACITY: 210%<! I"1 LB/YR DAl m : 1/C/77 OIL FIRED - 1922 ciSIS: i . 2400 M lb./lir. steam - includts 39 lti. stwa 2.182 IU pm:.7r
- 0. Two unit plant.
PLAf T M:D TOTAL COST ESTli' ATE - 1932 M $/YR. FECDWATER 3116 (r. LIMESTONE 372 FUEL OIL 14350_7_ TOTAL P.AU isATERI ALS 146?95 OPER. & !!AlllT. 17053 DEPRECIATICil 5752 TOTAL PL/.itT COST 169300 LAPITAL SU'4MA?J - 1982 M S CAPITAL 11EH D F C 19',820 TOTAL D F C 194320 TOTAL A F C + H C 24937 TOTAL CULK Ms.. 219757 ( l
5/ 15-s 'e 4) .
?;%.v4,
, . .f D TH2 DOW C H E M ' C /-\ t. CO M PANY M1CliICltN DT V[SION MidlanJ, Michigan January 13, 1977
- f. . F. Nute Legal Dept.
47 !!uitding COMP.\IIIS0 0F D0ff AI.TimNAT!YF.S FOR SUPP!.YINC ' STEAM AND P0h'En TO T!!E MIDI.AN!) Pl.A W II ASES :
- 1. Studies assurao 1932 initial opr ration. Costs are expres: ed in 1982 $ .
- 2. Five cases shown:
C.\SS A Purchase nuclear st:an, purchase pc.tcr, CASE B Purchase nucicar stean Produce potter (coal gasification, gas *turbino). CASE C Produce steam and power in coal fired stcan-Byproduct power plant. CASE D Produce steam and power in casified coal fired regenerative gas turbines + package boilers. CASE E Produce stcan and powc: in oil fi red s team-llyproduc t power plant. Attached are the follouing: ATTACHMF.NT I shous the annual cost, capital investment and cost plus a return on the investir.cnt for the five cases listed above. ATTACI::411NTS II 6 III are copics of work shcots used to arrive at the cost and capital estinntes for each of the cases.
~
/ y.w,w/ . ,J) -
'/J. R. Burroughs [3 .'\
.)i~L..$ chick i
Nuclear Liaison I rodn. Plann./ Econ. I' val . 4 7 Uldg. Phone 6-0606 t.7 Uldg. Phonc 6-3315 attach. (3)
ATTACilMENT I ' CASE A B C D E
.\l C/IIR STEAM 2,400 2,400 2,400 2,400 2,400 M N PONER 167 167 167 167 182
^
. v TOTAL COST (H $/YR.) 138 133 95 96 170 (first year of operation) ~ TOTAL CAPITAL (M $) 35 144 316 297 220 TOTAL COST. (first year of operation)
+ 15% ROI (M $/YR.) 143 155 142 141 203
+ 300 ROI (M $/YR.) 149 177 390 135 236 DATE OF ESTIMATE Sept.'76. Sept.'76 Sept.'76 Oct.'76 Jan.'77 E.
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15-w CASE S P!:0KCf i 3. : 220 76 DEPA!!Tf4Ei!T: EC0f!. Et!AL. LOCATIO:1: !:idland EVALUATO:<: JLS , CAPActiY: 21024 l-:Ti LB/YR DATE: 9/3/76 CAS TUCI :ES 1932 E'5ES: 1.1932 Cost 2. Cepit::1.
- 2. Purci'. liuclear steca 19P PLAi'T A::0 TOTAL COST ESTIt'. ATE - 1902
!! $/Yr:.
C0AL ~Hi S 19955
, TOTAL f;N. I4ATERIALS 19955 OPER. & ICI!!T. 15599 DEPRECIATIO1 5000 TOTAL BUL:' COST 403M
/JU c t 3 renin
/ 7 72 '!"
Q CAPITAL SU.-2:ARY - 1982 - l4 $ CAPITAL ijEW D F C 100000 TOTAL D F C 100000 TOTAL A F C + W C 9239 TOTAL BULK ;:FG. 109239 r a'u'i~o; /Jci cl - b EC EDN M j96!? 3 e 9
15-x CASE C pp.0]ECT !!O. 7.91-76 DEPAi:TisEllT: ECOM. CVAL. l.ctATIO:1: llidland EVALUATOR: JLS t.APACITY: 2102? 1D1 LC/YR DATC: 10/8/76 T[ STEAli & PO'<!ER - COAL FIP.ED - 1932 M.. SE3:
- 1. 2400 F. lb./hr. stew. - inclut.as 30 lb, stett. .
- 2. 167 !!'.: ponce.
- 3. Foix unit P ant..l PLANT At:0 TCTAL COST ESTI:4 ATE - 1982 11 S/YR.
FEEDi:ATER 3116 f LIlsEST0.'iE 1489 O C0A}. - Hi S 54842 TOTAL RA'<i 14TERIALS 59447 OPER. & 19.Ii!T. 26839 DEPRECIATION - 30 YR. 8305 TOTAL PLAilT COST 95092 CAPITAL SU:DIAPJ - 1982 11 S Cf.PITAL I:El.1 D F C 291291 TOTAL D F C 291291 TOTAL A F C + l! C 24702 TOTAL GULK fiFG. 315993
.(
15-y a CASE D
~ PROJECT i;0. 30?-76 '
i.0CA TIO::: Midi nd DEPARTIG:T: ECO:!. EVAI.. CAPACITY: 21C2', I'll LB/YR EVALUATOR: JLS DATE: 10/0/75 GAS TUP.DIi!ES 19C? e-
- v=,: s.
, 1.1902 Cost & Capital.
- 2. Pra-!dce 24G3 ;l Ib./hr. stear.. & 16711:.! po;;w. '
- 3. Fuel is ge.sified Hi S Coal PLAi:T A;10 TOTAL COST ESTiieTE - 1982 M $/YR.
COAL - Hi S 58371 FEEDMATER 3116 TOTAL RAW MATERIALS 61987 OPER. &IMIl!T. 2G120 DEPRECIATIO.'l - 30 YR. fl200 i TOTAL PLAliT COST 95337 CAPITAL SU:'.:4ARY - 1982 11 $ CAPITAL _
!!EU D F C 27347C TOIN., D F C 273i78 TOTAL A F C + U C 2333i i --
TOTAL EUU:f4FG. 297039
- , ,+, , ~.y y .--,,w . . --- - - . - - - ,-.-
15-z CASE F DEPARTI- E;iT : EC0!!. EVAL. PROJECT I:0. : 103-77 EVI,LUATO t: JLS LOCATIO!: Midland
', CAPACITY: 21024 l:1 LB/YR DATE: 1/5/77 OIL FIRED - 1932 CiSES:
- 1. 2400 f4 lb./hr. steam - includes '30 lb. ste.rc.
- 2. 102 lr.1 po.:ar
- 3. Two unit plant.
PLM!T AliD TOTAL COST ESTli'. ATE - 1982 l1 $/YR. FEEDWATER 3116 ( LIi.:ESTO.'lE 372 FUEL OIL - 143507 TOTAL I%ili:ATERIALS 146995 , OPER. & flAlliT. 17053 DEPRECIATIO:1 5752 TOTAL PLAliT COST 169300 CAPITAL sui'J:ARY - 1982 11 $ CAPITAL ilEH D F C 194820 TOTAL D F C 194020 TOTAL A F C + M C 24937 TOTAL DULK l:FG. 219757 ( l l
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.O D U T TI O N CO3T ESTU.u TS CCONO;.GC EVALU.mO.M OWARTT. Eth' f.UCWGAM D:'n510?
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16
- 13. Provide Dow's evaluation of_ the analyses presented in Consumers' Environmental Report Supplement of October 26, 1976 at page 9.5-1 which shows a considerable economic advantage to Dow of _ taking nuclear steam and electricity from Consu:.er's fiidland Units. Does Dow agree or disagree with the Consu:r.ers' analyses. Explain. If reports or
- studies are relied en in your response, please attach copies.
- Answer J
Attached is a study, dated flovember 10, 1976, which evaluates the information presented in Consumers Power's Environmental Report Supolement i at page 9.5-1. The only significant difference between the Consumers Power analyses and those done by Dow are the escalation factors used to project future coal costs. As Mr. Temple stated in his testimony on cross-examination, even though Dow is aware of the escalation figures used by Consumers Power, Dow still relies on its own forecasts. i i I xceI / N kn G -' dpstpr.'j . Temple, Jr. //
. ice nresident /
Dow dhemical U.S.A. 't
,n , . - ,.--,,
, ,,.,w , ,.-,,,,.,-r-- -
. o . 16-a Ai;/d.YSES C0'.4 VS CO::3UiiE!! f;UCLEAR ADVT.::T/OC CSTlHaTES 2400 Mf/he Sican f.167 "! Po.:ar Year Average Process Use
';rhe Stea:a (, Parchased Power Vs Dow Stea:'.' - By Product Poets, Coal Poc:ar Plant W.... .. .C. .d.
. : .1 Sl.lC/;I BTU (end 1970) x 8:'/y2 r escalatici (S yeacs) = 1.62/ii OTU (1932) ly'? to ?002: $1.62/i! Bid 6"/ year evalction = 52.41/5 GTU, 20. year levalizc4 c c,d,11.5: disco'mt ca to.
Conseer, 51.22/[i GTU (end 1976) x l?P/ year escalation (2 years) x 10C/ year escalation (3 ,sars) , $2.05/ : CTU (i(>32). 19^,2 to 2002: $2.05/E CTU x 9'.' year escalation = $3.91/E CTU, 20 year levelized cost, 15% discount rate.
./:. 31!_!1
_. FUEL COST (20 YEAP LEVELIZED), D0'<l PO:!EP. PLICT
$140 x 106/ year Censurers $3.91/M CTU, 20 yaer levelized Oc.w $2.41/M DTU, 20 year icvelized 82 x 106/ year 6
Difference $ 53 r.10 7 , CZ50'IR !!UCLEAi1 ADVA:!TaGE _ESTU' ATE 20 Year Levelized Costs fer'llions S Doe: P6c:ce Plant 233 I:u:1 car Ste m & Purch. Powar 171 fucisec Advantage 62 Adjcit for Dou Coal Cost Estima;.c (58)
;Qclur Advantage Adjusted for Dow Coal Cost Estic. ate 4 f0.l I;'.'Ci.FAP, f,07/.!!T/>CE ESTir,TE 4.3 b
J . P. Carrought 11-10-75
, * , *g.
~. *,.
, 17-Joseph G. Temple, Jr., being duly sworn, deposes and says that the foregoing Responses to the Interrogatories of 'GC Staff are true to the best of his knowledge and belief.
~
/4Y42, so .
/AJ /1 "tTs7aph Gt emple, Jf'. / V
,/ /
1 STATE OF MICHIGAN )
) ss:
[ COUNTY OF MIDLAND ) Subscribed and sworn to before me, a flotary Public, this 1$).-h day of February,1977.
*s O }
t h k- lM.i!LW.'/JL i
. Js 2)..k h5N
- No': 7 MP:, L'!: led Com.c, Mrcht;m M7 C IM:a ra;i:a A;di n,1973 4
e 4 T 4 E 7 i f
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UtlITED STATES OF A*tERICA h q . .,Y ilUCLEAR REGULATORY C0!ctISSICt!- b mi *1 In the Matter of the Application of )
)
C0fiSUMERS POWER COMPAtlY ) Docket flos. 50-329
) 50-330
)
(Midland Plant, Units 1 and 2) ) CERTIFICATE OF SER'/ ICE I hereby certify that copies of the attached " Responses to Interrogatories" dated February 18, 1977, were served ucon the individuals whose names appear on the attached service list by deposit in the United States raail, postage prepaid and properly addressed, on the 18th day of Feb ruary,1977.
" Jv (b O G,'% . - Lt4%^D
~ Juditn A. Suderman The Dew Chemical Company Legal Department 47 Building Midland, iiichigan 48640 February 18, 1977
Attachment:
Service List 3 2
SERVICE LIST Mr. C. R. Stephens Chief, Docketing and Service Section Office of the Secretary of the Commission U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Richard K. Hoefling, Esquire Counsel for NRC Staff U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Myron M. Cherry, Esquire Suite 4501 One IBM Plaza Chicago,-Illinois 60611 4 David J. Rosso, Esquire
- Isham, Lincoln & Beale j
One First National Plaza Suite 4200
- Chicago, Illinois 60603 Frederic J. Coufal, Esquire, Chairman Atomic Safety and Licensing Board Panel U.S. Nuclear Regulatory Commission
~
Washington, D.C. 20555 Dr. Emmeth A. Luebke, Member Atomic Safety and Licensing Board Panel i Washington, D.C. 20555
- Dr. J. Venn Leeds, Jr. , Member 10807 Atwell Houston, Texas 77096 i Ms. Mary Sinclair 5711 Summerset Street l Midland, Michigan -48640 Mr. Steve Gadler, P.E.
2120 Carter Avenue
- St. Paul,. Minnesota 55108 l-
+
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