ML19208D043

Forwards Util 790724 Press Release Re Cancellation of Project.Requests Termination of Proceedings in Docket. Press Release & Certificate of Svc Encl

ML19208D043
Person / Time
Site:	05000484
Issue date:	07/25/1979
From:	Baxter T NORTHERN STATES POWER CO., SHAW, PITTMAN, POTTS & TROWBRIDGE
To:	Salzman R, Smith I NRC ATOMIC SAFETY & LICENSING APPEAL PANEL (ASLAP), Atomic Safety and Licensing Board Panel
References
NUDOCS 7909270784
Download: ML19208D043 (6)

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Richard S. Salzman, Esquire Ivan W. Smith, Esquire Chairman Chairman Atomic Safety and Licensing Atomic Safety and Licensing Appeal Board Board U.S. Nuclear Regulatory Commission U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Washington, D.C. 20555 In the Matter of Northern States Power Company, et al.

(dryrone Energy Park, Unit 1)

Docket No. STN 50-484 Gentlemen:

Please find enclosed a copy of a news release issued on July 24, 1979, by Northern States Power Company, which announces a decision by the co-owners of Tyrone Energy Park to cancel that project.

Pending before the Atomic Safety and Licensing Board in this matter is the remand ordered by the Atomic Safety and Licensing Appeal Board in ALAB-464, 7 N.R.C. 372 (1978). Also pending before the Appeal Board in this docket is a proceeding to determine the consequences of radioactive radon gas releases attributable to the mining and milling of uranium fuel and to factor the result into the NEPA cost-benefit analysis for the nuclear power facili-ties in this and a number of other dockets. See Philadelphia Electric Company, et al. (Peach Bottom Atomic Power Station, Un2.cs 2 and 3), et al., ALAB-480, 7 N.R.C. 796 (1978); ALAB-509, 8 N.R.C. 679 (1978); ALAB-540 (April 25, 1979).

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SH AW, PITTM AN, POTTS & TROWB RIDG E Richard S. Sal man, Esquire Ivan W. Smith, Esquire July 25, 1979 Page Two In light of the decision to cancel the Tyrone Energy Park project, we respectfully request the Atomic Safety and Licensing Appeal Board to terminate the further proceedings which it has ordered in this docket.

Respectfully submitted, m .

Thomas A. Baxter .

Counsel for Permittees TAB:jah Enclosure cc: Service List f

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In the Matter of )

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NORTHERN STATES POWER CCMPANY, )

ET AL. ) Docket No. STN 50-484

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(Tyrone Energy Park, Unit 1) )

SERVICE LIST Richard S. Sal::an, Esquire, Chain.'n Peter A. Peshek, Esquire Atcuic Saferf and U consing Appeal Scard State Public Intereenor U.S. Nuclear Pegulaterf Cm'ission 114 East, State Capitol Washington, D.C. 20555 Madisen, Wiscensin 53702 Michael C. Fa=ar, Escui.m.

Atomic Saferf ard Licensing Appeal Scard Mr. D.creas Galaren U.S. Nuclear Reg"'atory F-missicn Rcute 2, Scx 64 Wash hgton, D.C. 20555 Turtle Lake, Wiscensin 54889 Dr. W. Reed Jchnsen Jocelyn Fur *E-.gler Olsen, Escuire Atanic Saferf and Licensing Appeal 3 card Special Assistant Attorney General U.S. Nuclear Regulatory Ccmnissicn Minnesota Pollutien Centrol Agency Washington, D.C. 20555 1935 W. Ccuntrf Prad 32 Resed 1'e, Minnesota 55113 Ivan W. Sctith, FAtm, Chaiman Atanic Safety and Licer. sing Scard Ric"2.rd Brig, Escuire U.S. Nuclear Regulatory C missicn c/o William Mitchell College of Lra Washingten, D.C. 20555 875 Su:r.in Avenue St. Paul, Minnesota 55105 Dr. Gecrge C. Andersen Ocea ography Cepar*=ent, W3-10 Michael J. Cain, Esquire Universief of Washington Eureau cf Legal Services Seattle, Washingt n 98195 Cepa_ent of Natural Rescurces Scx 7921 Mr. Iaster Kornblith, Jr. Madiscn, Wisconsh 53707 Atanic Safety and Licensing Scard U.S. Nuclear Regulatory c"n94=sien Steven M. Schur, Esquire Washington, D.C. 20555 Chief Ccunsel Public Service Comissien of Wisconsin Stephen H. Leais, Esquire Eill Fars State Cffice 9"'d5g Office of the Executive Iagal Director 4802 Sheccygan Avenue U.S. Nuclear Regulaterf Cc=issicn Madiscn, Wiscens h 53702 Washington, D.C. 20555 Mr. Stanley Cider Decketing and errice Se: tion c/o Curard Pestraster Office of the Secretary ?frene, Wisconsin 54736 U.5. Nuclear Reg"' =C0r/ Ccmission Washington, D.C. 20555 lbi UCI .

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NE' S S NORTHERN STATES POWER COMPANY O > 414 NICO LLET MALL, MINNEAPCLIS. \flNN. $$401 FCR ADDITIONAL IITFCRMATICN CCNTACT:

Beth Allen Ccmmunicatiens Representative 612/330-7679 7-24-79 FCR I.v_'!EDIATE PSIIASE TYRCNE ENERGY PARK CANCELI.i.,D Cc-cwners of the proposed Tyrece Energy Park today can-celled the 1,100-megawatt nuclear power plant planned for western Wisconsin.

"We believe that it will not be possible to license and build the project in time to meet the needs of cur custcmers,"

said Den McCarthy,' Northern States Pcwer Co.-Minnesota board chairman and president. ,

McCarthy made his ccmments at a news conference tcday, after the project's cc-cwners voted tc, cancel the 2 nit. Cc-cwners of the project and their participation are: NSP-Wisconsin Co.

cf Eau Claire, Wisc., 67.6 percent.- Cecperative Fewer Asso-ciation of Edina, Minn., 17.4 percent; Dairyland Pcwer Cccperative of La Crosse, Wisc., 13 percent; and Lake Superior District ?cwer Co. of Ashland, Wisc., two percent.

"The cc-cwners bel _ eve that Tyrene cannot be licensed in the 1980s and Stat other Opticns must be pursued to insure an ade-cuate supply of electricity," McCarthy said. He added that NSP-Wisconsin has proposed a 650-megawatt coal-fired plant to be 10-

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cated in western Wisconsin. It is scheduled to be in service in 1987. Dairyland Power Ccoperative also is planning a 650-megawatt coal-fired unit in Wisconsin. 3cth projects are subject to regu-latory approvals.

The main reason for the Tyrone cancellation is the March 6 denial of the project by the Public Service commissicn of Wiscon-sin. A acnth later, the cc-owners filed an appeal of that order in Eau claire county circuit court. "However, even with a suc-cessful court appeal, the cc-cwners believe a 1986 in-service date could not be met," McCarthy said.

The March accident at the Three Mile Island nuclear plant in Pennsylvania was considered by the cc-cwners in making the decision.

" Generally, the accident has increased the ancertainties about the

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future of nuclear pcwer," McCarthy said. "These uncertainties make it less likely that the Tyrone project could be licensed in a timely fashion."

McCarthy emphasited that the company is still ccmmitted to nuclear pcwer and that "Tyrone represents the most ecencmical and best methed of meeting the needs of our customers. There is nc question in cur minds that nuclear pcwer plants are safe, depend-able and ecenemical. However, if nuclear plants cannot be licensed in a timely fashicn, another option must be pursued," he added.

The project's co-cwners share a total financial ccmmitment estimated at $105 millien for the project. NSP's estimated S80 millien portion includes abcut 540 million spent to date on the project and an additional 540 million ecmmitment for centracted g equipment.

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As the Tyrene cancellation occurred in 1979, McCarthy said it is appropriate that a write-off of the less begin in 1979. A five-year accrtication plan is anticipated. McCarthy said the company will include Tyrene costs in future rate filings.

"However, we do not centemplate any increases in the rates paid by cur Minnescta er Wisconsin custcmers in 1979, despite the Tyrone write-off," McCarthy said. He explained that rate cases are not determined by one item of expense but upon the accumula-tien of all dests. That accumulation currently is not sufficient to warrant a rate increase. NSP's last Minnesota electric rate increase went into effect in June 1977.

"NSP is a highly regulated company in which the financial benefits of successful operation are passed en to customers in their electric rates. Consequently, it is appropriate te pass on Tyrcne losses since they were incurred in good f aith thrcugh prudent activities," McCarthy said.

"Overall, the write-off wculd amcunt to about S3.30 annually for the typical Minnesc:a residential customer over the five-year period. Cf ccurse, the ultimate effect on custemer bills will be determined by the appropriate regulatcry authorities.

"In any event, we still don't expect NSP's electric rates to increase, en average, any =cre than the general inflation rate over the next five years," McCarthy said.

The Tyrone project began in 1973 when NSP announced plans Oc construct a nuclear pcwer plant at the Durand, Wisc., site. The federal Nuclear Regulatcry Cc= mission issued a construction permit for the project in December 1977. Ecwever, the state permit for bf the-projectF was denied last March.

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