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.

P Applicant is an electric utility engaged exclusively in the generation, 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-wintex capability of 128,000 KM to be completed in 1975, two 'ined 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 is the for the Applicant's latest public sale of securities.

as'xhibit D Prospectus 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 $ 342,586,000 1976 365,107i000 1977 434,999,000 1978 513~793j000 1979 460,849,000 1980 488,878,000 1981 615,544,000 1982 748,487,000 1983 852,145,000 1984 946 061 000 TOTAL 95,768,449,000 Table 1 shows construction 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 short-term basis at the prime rate of interest. Bond issues sold in recent 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.

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TABLE 1 CAROLINA POWER & LIGHT COMPANY COMMITMENTS OVER THE LIFE OF THE CONSTRUCTION OF THE SHEARON HARRIS NUCLEAR POWER PLANT (000's of Dollars) lO-Year.

. 1975 1976 1977 .1978 1979 1980 . 1981 1982 1983 1984 Total PRODUCTION PLANT 4

Purchase Land for Plants 7,125 5,100 6,100 7,000. 7,200 4,300 4,000 4,000 10,000 10,000 64,825 Construct Unit No. 2 Brunswick-N 821 MW 1975 17,622 17, 622 Construct Unit No. 1 Brunswick-N 821 MW 1976 56,557 11,303 67,860 Construct Unit No. 4 Roxboro-F 780 MW 1978 28,455 27,799 34,210 8,924 99,388 Co'nstruct Unit No. 1 Harris-N 900 MW. 1981 65,133 103,186 109,582 107,509 99,296 92,910 49,548 627,164 Construct Unit No. 2 Harris-N 900 MW 1982 29,933 61,115 54,288 52,904 56,119 54,032 52,049 32,865 393,305 Construct Unit No. 4 Harris-N 900 MW 1983 2,320 12,848 57,936 94,528 80,094 66,508 63,104 609270 33,626 471,234 Construct Unit No.3-Harris-N 900 MW 1984 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 Construct Generating Units 1985-1991 7,344 51,487 199,700 385,473 514,109 640,300 1,798,413 Air 6 Water Quality Control Devices 26,186 32,312 29,179 10,055 97,732 Additions 6 'Replace-ments of Generating Plants System 6 520 2 664 2 694 2 963 3 260 3 586 3 944 4 337 4 772 5 249 39 989 Total Production Plant 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 $ 2,050,757,000 FPC Account No.

320 Land 6 Land Rights 47,775,000 321 - Structures 6 Improvements 537,369,000 322 Reactor Plant Equipment 524,565,000

• 323 - Turbine Generator Equipment 343,465,000 324 - Accessory Electrical Equipment 119,166,000 325 Misc. Power Plant Equipment '12,468,000 Interest 4650949,000 (b) Transmission, Distribution &

General Plant Cost $ 62,192,000 353 - Transmission Plant Sta. Equipment 47,968,000 Interest 14,224,000 (c) Nuclear Fuel Inventory Costs 140,867,000 Nuclear Fuel 125,693,000 Interest 15 174 000 TOTALS $ 2~253~816~000 $ 2~253~816~000

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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 1975 1976 1977 1978 1979 1980 1981 1982 1983 1984 Common stock Preferred stock

~105 0

~100 50

~79 0

~181 100

~050 ~ill 50

~110 ~208 ~221 ~178 50 50 150 150 .

Long-term debt 125 125 150 150 300 150 300 300 300 300 Notes payable Total 29 259

~27 248 88 317

~9) 422

~33) 317.

26 16 10 ~16 79 337 476 568 655 707 Internal Funds Net income 82 100 148 168 183 200 200 253 262 305 Less: a preferred dividends 22 '23 27 31 38 ~

40 46 53 61 66 common dividends 47 66 78 93 103 118 134 157 188 229 Retained earnings 13 11 43 44 42 42 20 43 14 10 Deferred taxes 21 29 32 33 37 40 51 63 72 82 Investment tax credit-net Depreciation & amortization

~1)50 4 5 10 8 1 ~2) 10 0 3 63 67 73 83 94 113 137 159 180 Less: AFDC 51 39 54 72 89 112 107 116 133 145 Total Internal Funds 32 68 93 88 81 65 75 137 112 130 TOTAL FUNDS ~291 ~316 ~410 ~510 ~398 ~402 ~551 ~705 ~767 ~837 Construction Ex enditures

• Nuclear power plants ~139 ~172 ~224 ~295 ~231 187 159 ~96 ~59 ~27 Other 160 156 160 152 149 202 364 556 685 797 Total Const. Exp's. ~298 ~328 ~384 ~447 ~380 ~389 . ~523 ~652 ~744 ~824 Sub)ect nuclear plant S 87 ~165 ~224 ~295 ~231 ~187 ~159 ~96 h59 ~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 33,775 14,000 47,775 321 254,947 84,482 1003983 96,957 537,369 322 131,831 116,829 142,312 133,593 524,565 323 813169 74,117 98$ 253 89,926 343,465 324 253604 28,265 32,361 32,936 119,166 325 8,171 1,256 1,561 1,480 12,468 Interest 152,597 91,576 118j694 100,347 2,735 465,949 (b) Transmission, Distribution and General Plant Cost 353 9,261 9,108 14,426 15,173 47,968 Interest 2,639 2,735 4,560 4,290 14,224 (c) Nuclear Fuel Inventory Cost Fuel 29,991 30,939 33,324 31,439 125,693 Interest 3 614 3 733 4 040 3 787 15.174 Totals 733,599 443',040 550,514 509,928 16,735 "

23253,816 The estimated cash flow o'r cost by unit by years is as follows:

Unit 1 Unit 2 Unit 3 Unit 4 Land Total Prior to 1975 72,830 15,063 3,212 3,468 14, 983 109,556 1975 65,133 29,933

'80 2,320 1,752 99,818 1976 103,186 61,115 8,500 123848 185,649 1977 109,582 54,288 38,220 57,936 260,026 1978 107,509 52,904 96,792 94,528 351 $ 733 1979 99,296 563119 73,100 80$ 094 308,609 1980 92,910 54,032 67,600 '66,508 281,050 1981 49,548 52,049 70,534 63,104 235,235 1982 32,865 59,936 60,270 153,071 1983 60,152 33,626 93,778 1984 34 424 34 424 Subtotal 699,994 4083368 513,150 474,702 16,735 2,112,949 Fuel Costs 33 605 34 672 37 364 35 226 140 867 Totals 733,599 443,040 550,514 509,928 16,735 2,253,816

Amendment No. 40 TABLE 3 PLANT CAPITAL INVESTMENT

SUMMARY

- UNIT NO. 1 BASIC DATA Name of plant Shearon Harris Cost basis: at start of construction Net capacity 900 MW e) (1973 Dollars) $ 403 735 Reactor type Location Wake Count e of coolin Desi n and construction eriod Run of river Natural draft Month, year NSSS order cooling towers X placed 4/71 Mechanical-draft Month, year of commerical cooling towers operation 3/81 Other (describe)

Length of workweek 0 hre.

Interest. rate, interest during construction 8%

COST

SUMMARY

Account Number Account Title Total Cost (thousand dollars)

DIRECT COSTS 20 Land and land rights .................... $ 33 278 PHYSICAL PLANT 21 Structures and site facilities 143 513 22 Reactor plant equipment ................. 103 886 23 Turbine plant equipment ................. 58 905 24 Electric plant equipment ................ 18 742 25 Misc. plant equipment .............. .... ~ 6 961 Subtotal . ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ . ~ ~ ~ ~ ~ ~ ~ ~ . 332 007 Spare parts allowance .................,.

Contingency allowance ................... 63 189 Subtotal .. .... , .......... ....

~ ~ ~ ~ ~ ~ 395 196 INDIRECT COSTS 91 Construction facilities, equip't, and services $ 23 026 92 Engineering and const. mg't. services 31 060 93 Other costs ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 66 937 94 Interest during construction ............ 155 332 Sub'total ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 276 355 Start of construction cost $ . 704 829 Escalation during construction ( 7 % yr.)

Total plant capital investment $ 783/KW) 704,829

• Included Above 5B-

amenamenc ~u. ~v TABLE 4 PLANT CAPITAL INVESTMENT

SUMMARY

UNIT NO. 2 BASIC DATA Name of plant Shearon Harris Cost basis: at start of construction Net capacity 00 MW e 1973 Dolla s 220 17 Reactor type Location Wake Count e of coolin Desi and construction eriod Run of river Natural draft Month, year NSSS order cooling towers X placed 4 71 Mechanical draft Month, year of commerical cooling towers operation 3 82 Other (describe)

Length of workweek 40 hrs.

Interest rate, interest during construction 8%

COST

SUMMARY

Account Number Account Title Total Cost (thousand dollars)

DIRECT COSTS 20 Land and land rights ~ ~ ~ ~ ~ ~ ~ ~ ~ ~

PHYSICAL PLANT 21 Structures and site facilities 4 097 22 Reactor plant equipment ....... 86 910 23 Turbine plant equipment 53 366 24 Electric plant equipment ...... 18 907 25 Misc. plant equipment 915 Subtotal ................. 209 195 Spare parts"allowance Contingency allowance .......... 37 814 Subto'tal ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 247 009 INDIRECT COSTS 91 Construction facilities, equip't, and services .............................. $ 10 978 92 . Engineering and const. mg't. services ... 9 758 93 Other costs 0 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 37 204

'94 Interest during construction ............ 91 576 S ubtotal ........................... 149 516 Start of construction cost .............. $ 396 525 Escalation during construction (=7 % yr.)

Total plant capital investment $ 441/KW) $ 396 525

• Included Above

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Amendment No. 40 TABLE 5 PLANT CAPITAL INVESTMENT

SUMMARY

- UNIT NO. 4 BASIC DATA Name of plant Shearon Herr'is Cost basis: at start of construction Net capacity 900 MW e 1973)Dollars 227 202 Reactor type PWR<

Location Wake Count

'esi n and construction eriod Run of riv'er Natural draft Month, year NSSS order cooling towers X placed 4/71 Mechanical draft Month, year of commerical cooling towers operation 3/83 Other (describe)

Length of workweek 40 hrs.

Interest rate, interest during construction 8X COST

SUMMARY

Account Number Account Title Total Cost (thousand dollars)

DIRECT COSTS 20 Land and land rights .................... 0 PHYSICAL PLANT 21 Structures and site facilities .......... 58 557 22 Reactor plant equipment ................. 102 209 23 Turbine plant equipment 66 720 24 Electric plant equipment 22 358 25 Misc. plant equipment ................... 1 065 Subtotal ...... ~ ........... .... ... ~ ~ $ 250 909 Spare parts allowance ...................

Contingency allowance ................... 45 071 Subtotal ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ $ 295 980 INDIRECT COSTS 91 Constru'ction facilities, equip't, and services ......,....................... $ 12 421 92 Engineering and const. mg't. services 8 163 93 Other costs ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 38 328 94 Interest during construction ............ 100 347 Subtotal ~ ~ ~ t ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 159 259 Start of construction cost $ 455 239 Escalation during construction ( 7 X yr.)

Total plant capital investment $ 506/KW) $ 455 239

• Included Above

- 5D-

e Amendment No. 40 PLANT CAPITAL INVESTMENT

SUMMARY

UNIT NO. 3 BASIC DATA Name of plant'et Shearon Harris Cost basis: at start of construction capacity 1973 Dollars 225 385 Reactor type 900'ake Location Count e of coolin Desi n and construction eriod Run of river Natural draft Month, year NSSS order cooling towers placed 4/71 Mechanical draft Month, year of commerical cooling'owers operation 3/84 Other (describe)

Length of workweek 40 hrs.

Interest 'rate, interest during construction 8%

COST

SUMMARY

Account Number Account Title Total Cost (thousand dollars)

DIRECT COSTS 20 Land and land rights PHYSICAL PLANT 21 Structures and site facilities ....;..... 62 703 22 Reactor plant equipment ................. 110 013 23 Turbine plant equipment 72 466 24 Electric plant equipment ....... ~ ~ ~ ~ ~ ~ ~ ~ ~ 22 528 25 Misc. plant equipment 1 126 Subtotal $ 268 836 Spare parts allowance ...................

Contingency allowance .................., 46 558 S ubtotal 1 ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 315 394

~ INDIRECT COSTS 91 Construction facilities, equip't, and services $ 12 015 92 Engineering and const. mg't. services 10 889 93 Other costs ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ 37 172 94 Interest during construction ............ 118 694 S ubto tel ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ ~ $ 178 770 Start of construction cost .............. 494

• 164 Escalation during construction { 7 % yr.)

Total plant capital investment $ 549/KW) 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:

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