ML18079A513

Submits Schedule for Startup,Testing & Preliminary Operation & Fact Sheet to Support Application for OL

ML18079A513
Person / Time
Site:	Salem
Issue date:	06/19/1979
From:	Rich Smith Public Service Enterprise Group
To:	Hendrie J NRC COMMISSION (OCM)
Shared Package
ML18079A512	List: ML18079A510 ML18079A513
References
NUDOCS 7907100544
Download: ML18079A513 (6)

Text

Robert I. Smith Public Service Electric and Gas Company 80 Park Place Newark, N.J. 07101 201/4~0-5656 Chairman of the Board June 19, 1979 Honorable Joseph M. Hendrie Chairman Nuclear Regulatory Commission Washington, D. c. 20545

Dear Mr. Hendrie:

NUCLEAR POWER NEEDS OF PJM COMPANIES

• .

MEETING WITH NRC COMMISSIONERS JUNE 14, 1979 Than$: you for the opportunity to meet with you and discuss the nuclear power needs of the PJM system, particularly as i t relates to the licensing of Salem No. 2. I would also like to express our thanks to your staff for their help in arranging the meeting.

In order to be completely clear in our pos1tion, I want to

.state again that Salem No. 2 is ready for operation and we request that the Office of Nuclear Reactor Regulation proceed with the licensing of this unit as soon as possible. In our opinion, this can reasonably be done without waiting for further review of any matters generated by the Three Mile Island study.

• As we discussed, the replacement fuel cost on the basis of

• full-load operation is about $600,000 a day. Assuming ari.

80% availability between refuelings, this translates to

$480,000/day. Incidentally, while we were in the meeting, our oil prices were raised another 5%, continuing a trend which increases the cost penalty. Our oil price has now increased 40% since the first of the year. A one-year delay could conceivably raise utility rates by close to

$200 million for differential fuel cost alone. In addition, the 45,000 barrels of oil which will be used for each full-

.. ' . .' . ..

Bon. Joseph M. Hendrie 6/19/79 .,

"

ioad day the unit is delayed represents nearly io% of the national shortfall. We believe any delay in 1icensing Salem No. 2 is unconscionable since it is not in the

-best interest of our customers, or of the nation.

From a safety standpoint, there is no basis for delaying the issuance of the operating 1icense. With regard to the

!rb.ree Mile Island incident, we believe we have addressed all of the significant issues that have emerged. We have already made plant changes and believe we can accommodate other required short-term items before operation. .Longer_:*

term items that flow from our reviews or from your analyses can be handled in a timely lllanner once details are resolved and implementation schedules are prepared. Therefore, we see no reason to delay the operation of the plant due to TMI issues. We have requested a meeting with your staff to

~eview our position on this matter.

In our meeting, we outlined *the schedule for startup, testing and preliminary operation of Salem No. 2. Attached is a copy of that schedule for your information. construction is complete.

The inspections have been finished. Only final review by NRC remains to be 'done. We understand this review has not* been performed because the staff has a present policy of deferring 1icensing action. Very few items requiring staff review remain in order to.complete the processing of our license.

We respectfully request that an exception to the present policy be made in this case.

Also attached is a fact sheet which has been developed and is being sent to the congressmen from the State of New Jersey who have expressed an interest in the licensing of Salem No. 2.

~is condensed version of our concerns lllay be of assistance to you.

Thank you again for the opportunity to discuss our problems with the full Corranission. If we can be of any £urther assistance, do not.hesitate to contact us.

very truly yours, Enclosures

_ _ _ _ _ _J

Hon. Joseph M. Hendrie 6/19/79 cc Hon. John F *.Ahearne Hon. Peter A. Bradford Hon. Victor Gilinsky Hon. Richard T. Kennedy Senator Harrison A. Williams, Jr.

Senator William Bradley Hon. James A. Courter, M.c.

Hon. Millicent H. Fenwick, M.C.

Hon. James J. Florio, M.c.

Hon. Edwin B. Forsythe, M.c.

Hon. Frank J. Guarini, M.c.

Hon. H*arold c. Hollenbeck, M.c.

Hon. James J. Howard, M.c.

Hon. Williain J. Hughes, M.c.

Hon. Andrew Maguire, M. C.

Hon. Joseph G. Minish, -M.c.

Hon. Edward J. Patten, M.c.

Hon. Matthew J. Rinaldo, M.c *.

Hon. Peter w. Rodino, Jr., M.c.

Hon. Robert A. Roe, .M.c.

Hon. Frarik Thompson, Jr., M.C.

Mr. George H. Barbour, President, BPU Mr. Joel R. Jacobson, Director, DOE Comm. Edward H. Hynes Comm. Richard B. McGlynn

....

SALEM NO. 2 UNIT STARTUP SCHEDULE BASED ON AN OPERATING LICENSE ON

-JULY 1, 1979 Activity

1. Receive Operating License July 1

2. Prepare for Core Load July l*

3. Core Loading July 8 *

4. Prepare for Criticality July 12

5. Initial Criticality August 16

6. Prepare for Generator Sync. August 16

7. Initial Generator Sync. August 29

8. 10% Power Testing August 29

9. 30% Power Testing .September 4

10. 50% Power Testing September 19

11. Planned Outage September 28

12. Startup to 75% Power October 9

13. 75% Power Testing October 14

14. 90% Power Testing October 31

15. 100% Power Testing November 8

16. Commercial Operation Date November 23 6/6/79

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Fact Sheet OPERATION OF SALEM NO. *2 tTnit A *1,100,000-KW nuclear generator located at Artificial Island~ Salem county, N. J. This is a duplicate of Salem No. l which has been in service for ahout two years.

Status Construction was completed on May 1, 1979 at a ~est slightly

.in excess of $700,000,000. The unit is ready to load fuel and begin the generation of electricity.

_Licensing Several issues remain to be resolved which can be taken

• -care of in a few weeks. NRC has said there will be a delay of at least three months in the.issuance of a license. This is due to a lack of manpower within the Nuclear Regulatory commission and a desire to resolve certain items resulting

£rom the TMI accident before the license is issued. PSE&G believes that all Three Mile.Island short-term issues have

.been resolved and there is ilo justification-£or a delay in issuing the full-load license.

cost to customers For each day the plant is delayed, customers will pay an additional $600,000 due to the higher fuel cost in burning oil versus the cost of nuclear power when the unit is operating at full load.

In addition, in the long term, the customers will also have to pay ahout $230,000/day for each day of delay in issuing the license. This additional cost is due to the carrying charge of the capital invested in the plant plus the cost

.of keeping the plant ready to begin operation.

For lengthy delays, the rates to customers would have to increase about $20,000,000/month.

' .! ~

• Effect on Oil Consumption The delay in full-load operation of Salem No. 2 will result in our burning about 45,000 barrels of oil/day in order to ..

generate the equivalent --amount -of electricity from older units. For extended delays, this would become about 950,000 barrels/rconth. * .

As a basis -of comparison, Mr. Stuart E. -Eizenstat, Assistant to the President £or Domestic Affairs and Policies, recently said that the national oil shortfall is about 500,000 barrels/

day. The delay in Salem would represent nearly-10% of this

• figure. Another basis for comparison is that the entire State of New Jersey consumes about 238,000 barrels/day of gasoline.