ML19340B445

Forwards Util 800904 Ltr to Congressman Brooks Re Cost of Unwarranted Delay for Hearing on CP Application.Urges Assistance to Have NRC Cease Benign Neglect of Nuclear Projects

ML19340B445
Person / Time
Site:	Allens Creek File:Houston Lighting and Power Company icon.png
Issue date:	10/20/1980
From:	Brooks J HOUSE OF REP.
To:	Kammerer C NRC OFFICE OF CONGRESSIONAL AFFAIRS (OCA)
References
NUDOCS 8011100623
Download: ML19340B445 (4)

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L /l h !-n H j111 e RO. Box f700 Houston. Texas 77001 Washington, D.C. 20016 September 4, 1980 Honorable Jack Brooks U.S. House of Representatives Washington, D.C. 20515

Dear Congressman Brooks:

As you can see from the attached white paper, we are concerned about the cost to the Houston area of continued unwarranted delay on just getting a hearing for a Construction Permit on our Allens Creek Nuclear Project.

We are just asking for a hearing on the Merits.

Your assistance in getting the Nuclear Regulatory Commission (NRC) to abandon its " benign neglect" of nuclear projects would be appreciated.

In particular we are asking that you call and write the NRC to require that members of the Licensing Board acoointed for this proceeding be relieved of their conflicting r'esponsibilities or that the Board be reconstituted so that a

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hearing may begin and be conducted through this fall.

3est regards,

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' ' Howard Pyle HP:bd Attachment

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w Che Nuclear Regula: cry Ccamission is being asked only Oc perform its function and bring the matter cf a Construction Permi: 20 trial. However, the Co= mission refuses to come to

grips with the merits of the Allens Creek Proje

: and has been insensitive to the needs of the ratepayers and citizens of Houston.

The Commission must step in and insist that a balance be struck in establishing priorities which gives fair weight to the interests of HL&P, its ratepayers and shareholders, the citizens of Houston and national energy policy. The Commission shculd require that the members of the Board appointed for this proceeding be relieved of their conflicting responsibilities or that the Board be reconstituted so that hearings may begin and be conducted through this f all.

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Delays in Allens Creek licensing will cos: Houston area residents 51 million a day-by the mid-1980's if a hearing is not granted for a Construction Permit soon. Houston Lighting

& Power Company (HL&P) has been trying for three years to get a trial date for a Construction Permit on its Allens Creek Nuclear Generating Station, Unit 1 (NRC Docket No. 50-466). The plant was to have begun operations in 1985, but failure of the Nuclear Regulatory Commission to begin hearings for the Ccnstruction Permit has now pushed the planned co=pletion date to 1988.

Each year of delay increases the total capital cost by anocher S100 million to S200 million. It would already take approximately 5225,000,000 to just cancel the project. Out-of-pocket expenditures to continue the project amount to S2,530,000 per month. In the late 1980's, when the project is now planned to be completed, the alternative fuels or additional purchased power to substitute for the project will cost HL&P customers another $300 million to S500 million.

For comparison purposes, generation costs in 1988 (i.e., ex-clusive of transmission, distribution, and administrative costs) are expected to be 55.6 mills per kilowatt-hour for Allens Creek, 82.8 mills per kilowatt-hour for lignite and 96.0 mills per kilowatt-hour for coal.

The problem is that the Com=ission has continued to allow new issues to be raised. Also, discovery on some contentions has been going on for over a year, which is extraordinarily and excessively long. The formal hearing is long overdue and should be held now. However, the licensing Scard said that it was unavailable between November 1, 1980 and mid-January, 1981, and therefore could not commence evidentiary hearings until mid-January. HL&P has endured

, many delays for the sake of fairnes.s , but the ratepayers and citizens of Houston are now being subjected to unreasonable

delays and consequently to unnecessarily higher rates.

It is clear that the Houston area needs the Allens Creek Nuclear Project. In 1988 (the planned completion date), Allens Creek is expected to contribute 1,150 megawatts for HL&P 's 13,775 megawatts of peak demand. In addition to the energy, HL&P expects 2,400 workers to be employed at the peak of cons truction activities. The Harris County Building

and Construction Trades Council filed an intervention petition

_n support of the proj ect.

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