ML17276B805

Forwards Addl Pages for Insertion in 801215 Request for Relief from Inservice Insp & Testing Requirements.Pages to Be Inserted in Inservice Insp ASME Code Classes 1 & 2 Components,Notes 1-19, & 1-12,respectively

ML17276B805
Person / Time
Site:	Surry
Issue date:	02/11/1982
From:	Leasburg R VIRGINIA POWER (VIRGINIA ELECTRIC & POWER CO.)
To:	Harold Denton, Varga S Office of Nuclear Reactor Regulation
References
068, 68, NUDOCS 8202180235
Download: ML17276B805 (4)

Text

C jp c Cs.C C C'IY 5'g Y.I~P g h o g~00 C 0~~Xl 0 4.0 0 CA 5 ZO o p~+Z 0 CTl~CQ~n O lD tlat hJ z Q 0 Z SEPTEMBER 27,'1981 QUARTERLY REPORT./s/./iy J'$1I3 r n~000 g7 CA (zK~~-za~w~m WASHINGTON PUBLIC POWER+Dc'+g~0-~7 SUPPILY g)+lt~Qgp Zl.G 8 g~~K.5, Rp g)pC en'L4gg~ggewy tlge NJI-y BAILANCE SHEHS (Unaudited)

Current Assets-Operating Fund Restricted Assets:~Special Funds Debt Service Funds Utility Plant Equipment In.Service (net)Construction Work in Progress Other Assets&Deferred Charges$6,770 4 3.665 4.966 5,531 I 41,892 41,892 4,515$39,868 1,051,366 797,759 1,849.125 8,874 5.742.511 5.751.385 23,835$8,208 4,960 4.960 870$54,846 1,055,031 802,725 1.857.756 55,726 5,742,511 5.798.237 29,220 SEPTEMBER 27, 1981 UABIUTIES Current Liabilities

-Operating Fund Liabilities-Payable from Restricted Assets: Special Funds Debt Service Funds Long-Term Debt Other Uabilities

&Deferred Credits 861,808$3,155 885 407 1,292 53.916 3,445 861,808 87,664,213

$33,868 391,512 158.393 549,905 6,628,973 451.467 87,664,213 814,038$8,020 6,018 814,038 S7,740,059

$45,043 392.397 158,800 551,197 6,682,889 460,930 87,740,059 51I ATEMlENTS GIF SGUIRCE ANID USE GIF IFUNIDS (Unaudited)

FISCAL THREE MONTHS ENDED SEPTEMBER 27, 1981 (8 IN THOUSANDS)

SOURCE OF FUNDS Operating Receipts Collections Under Net Billing Bond Proceeds Interest Income Charged to Joint Owners Decrease in Restricted Funds Net Change in Operating Fund Other USE OF FUNDS Operating Expenses Construction Costs Interest Expense Nuclear Fuel Financing Expense Increase in Restricted Funds Revaluation of Investments Other Operating projects Hanford&Packwood$13,182 2,437 (320)2 815,843 011,990 468 243 182 2.960 Construction Nuclear Projects Nos.1, 2.3&4/5$53,802 666,958 37,673 33,501 59,471 422 8851,827$366,498 119,940 18,350 345 342,961 (718)4.451 Internal Service Fund (42)295 8253$253 Combined$13,182 53,802 666,958 38.21 5 33,501 61.908 60 297 8867,923$11,990 366,498 120,408 18,350 345 343,204 (536)7,664 815,843 8851,827 8253 8867,923 The Washington Public Power Supply System was organized in 1957 as a municipal corporation and joint operating agency of the State of Washington.

Its membership consists of 19 public utility districts and 4 municipalities which own and operate electric systems within the State of Washington.

It is empowered to acquire, construct and operate facilities for the generation and transmission of electric power and energy.

I I SUPPLY SYSTEM SEPTEMBER 27 1981 FISCAL YEAR 1982 PROjECT COSTS NNP Nos.1-S TOTAL FUNDING REQUIREMENTS 1882 BUDGET CUMULATIVE COSTS IFUNI9ING SUPPLY SYSTEM FUNDING REQUIREMENTS 1982 BUDGET IRIEQUIIREMIENTS FUNEED To EATE lN NP Nos~-8'SUPPLY SYSTEM OWNERSHIP SHARE: WNP No.3.Teys 5N9E3%'5 TEP WNP No.6.9OIL I~ES~TO~ldll C3 S 11.000 10.000~11.111~.000 z CI 3.500 3.000 Z 2.500 Ellis~2>ll~4.122 C3 III 2.000 0 e.ooo z e.ooo~5110~1~11 21 2%SI lss~22TT~1.1 Sl~E.OSO~1 OSO 1lS\11.120 Sl S5~TOSS ls STS~1.1 20~S OTS~2 210 20 ETE WNP No.1 WNP No.2 WNP No.3 WNP No.4 WNP No.6 WNPNo.2 WNP ko.2 WNP No.3'NP Nos.e/5'Construction Completed Nuclear Proiect No.1 Nuclear Project No.2 Nuclear Project No.3 Nuclear Project No.4 Nuclear Project No.5 Plant Size (MWe)1250 1100 1240 1250 1240 Date of Scheduled Commercial Operation June 1986 February 1984 December 1986 June 1987 December 1987 Quaner Ended Sept.27.1981 5.5 4.8 1.0.9 Cumulative Sep!.27, 1981 46.9 36.8 24.0 15.8'WNp-2 is in the system's completion phase-the last 15%of the project.tS IN THOUSANDS)

ASSETS'Operating Projects ffanford 81 Packwood Construction Nuclear Projects Nos.1, 2.3&4/5 Internal Sefvice Fund Combined MlB(ngiglng E)Iii'eCjlcI' COJTTmentS WNP-4/5 MOTHBALL DECISION On September 18, the Governors'lue Ribbon Panel released the results of its study on WNP-4 and 5.Their recommendation, which the Board of Directors adopted at its October 23 meeting, puts the projects in a preservation mode until at least June 30, 1983.By the end of this period, the WNP-4 and 5 study mandated by the Washington State Legis-lature will have been completed.

Also, the Regional Power Council will have finished its plan and will be in a position to consider whether or not to recommend Bonneville's acquisi-tion of power from WNP-4 and 5.The plan to preserve the projects involves participation by the 88 participants in the projects, three investor-owned utilities and the region's direct service industries.

The partici-pants agreed to pay$91 million o(the$150 million cost to defer construction as well as 100 percent of the interest dur-ing construction beginning March 1, 1983.The three investor owned utilities-Puget Sound Power&Light, Washington Water Power Co.and Pacific Power&Light Co.-agreed to pay$29.5 million.The remaining$29.5 million will come from the region's direct service industries.

The immediate and orderly shutdown of Projects 4 and 5 is being implemented.

In addition, the Supply System has taken the following steps to preserve the assets of the pro-jects at the least possible cost:~Ordered a two-month hiring freeze, except for jobs ccit-ical to the completion of WNP-1, 2 and 3.~Implemented a reduction in force o(approximately 344 Supply System employees.

This reduction will cut the Supply System's salary cost by nearly$9 million annually.~Directed a re-evaluation of impact payments to school districts based on construction of three plants rather than five.These steps re(lect the trans(ormation of an organization constructing (ive nuclear power generating plants to one that is now constructing three.Both the region and the Supply System have demon-strated their commitment to providing for the energy needs of the Northwest.

In a sense, the$150 million needed to pre-serve WNP-4 and 5 is similar to an insurance premium-one that guarantees that the assets are there if needed in the future.The agreement to preserve WNP-4 and 5 puts those units in the background for the time being.It also allows the Supply System to move aggressively ahead with construct(on of its other three projects.FINANCIAL In the first quarter, Supply System operating receipts totaled$66,984,000.

Operating plant receipts were$12498/00 for the Hanford Generating project and$284,000 for the Packwood Lake Hydroelectric Project.Net billing receipts from the participants in Nuclear Projects 1 and 2 were$53+02,000.

During the quarter, the Supply System's single largest bond sale was completed.

The net proceeds of the$750 mil-lion are expected to provide enough funds to continue con-struction of WNP-1, 2 and 3 through early 1982.The bonds sold at an average interest rate o(about 14.5 percent.The funds have been apportioned as follows: WNP-1,$315 mil-lion;WNP-2,$210 million;and WNP-3,$225 million.It was the first negotiated sale since the Washington State Legisla-ture passed a law to allow that financing option.Prior to that, the Supply System was compelled to offer bonds on a com-petitive bid basis before a sale could be negotiated.

In July, the Board of Directors approved a$23.8 billion construction budget which covered the total estimated costs for completing all five projects during the next six years.It was the first construction budget prepared under the new Supply System management philosoph~ne which uses a zero-based budgeting concept.CONTRACTS Bechtel Power Corporation was selected as the System's Completion Contractor at WNp-2 in late August.The project is about 86 percent complete and Is scheduled for fuel load-ing in September 1983.New legislation adopted by the Washington State Legislature earlier this year allows the Supply System to negotiate a"systems completion contract" once a project is 80 percent complete.This enables the Supply System to consolidate the finishing work under one contractor.

In September, a contract including an incentive clause, which could mean up to$45 million in profits, was signed with Ebasco Services, Incorporated.

Ebasco will be p'aid that sum only if it finishes WNP-3 and 5 at least 10 months ahead of schedule.It represents a potential savings of up to$1 bil-lion for the ratepayers, since the projects would produce revenues during those 10 months and avoid additional con-struction and financing costs.The previous Ebasco contract was essentially a cost-plus arrangement that required negotia-tions for any change-a process that added cost and delays to the projects.CONSTRUCTION/OPERATIONS The three vital components of the nuclear steam supply sys-tem for WNP-3 wece installed in late August-a week ahead of schedules set more than a year ago.The productivity at the project was a record 1.6 percent in August, with a total for the quarter of 4.3 percent.Constcuction progress is also ahead of schedule at WNP-1 with construction progress at 1.8 percent in August, and a total of 5.5 percent for the quarter.Work is nearing comple-tion on the containment dome.At WNP-2, a week-long inspection by the Nuclear Regu-latory Commission in September indicated no violations.

It included examination of management programs including project controls, quality assurance, design and construction.

A draft environmental impact report on WNP-2, com-pleted this summer, stated"operation of the nuclear plant would have no adverse social or economic effect on Han(ord or the surrounding cocnmunities." The final environmental report will be published in December and a safety evaluation will be issued in March 1982.Following the recommendation by the Board of Directors to preserve WNP-4 and 5 for two to two-and-one-half yeacs, the Supply System organized a team to direct the orderly and immediate shutdown of the plants.At WNP-4, the craft work force is below 50, with activities geared toward auditing and securing contractors'ocumentation, disposing of contrac-tors'nventories and maintaining equipment and buildings.

Similar activities are taking place at WNP-S, where critical construction is continuing to natural stopping points so that the project can be preserved for future use.The Hanford Generating Project returned to service August 1 a(ter its scheduled summer outage.From August 1 to August 20, operation was intermittent.

Full generation was reattained August 24 and the project continued operating without interruption in September for a total of 619,880,000 kwh.The Packwood Lake Hydroelectric Project netted a total of 19,470/00 kWh this quarter.About 430 hours0.00498 days <br />0.119 hours <br />7.109788e-4 weeks <br />1.63615e-4 months <br /> of down time were scheduled due to decreased stream flow into the lake.MANACEMENT In September, the Supply System's top management was realigned to include 12 rather than 15 directors.

Sa(ety and Security is the new corporate unit responsible for all health, safety and security, environmental programs and regulatory matters related to licensing by the Nuclear Regulatory Commission.

Its director is John W.Shannon, pre-viously manager of Safety and Security.Former adminstrative director Dwight R.Frindt is the new director of Business Programs.Added to his directorate are management policy and systems, contracts and materials management and internal auditing.The Supply System recently initiated a program to reduce the 1982 adcninstrative and general expenditures by 25 per-cent.The Supply System staff was also reduced by 12Vi per-cent.These decisions have been difficult, but were deemed necessary to fulfill our commitment to complete WNP-1, 2 and 3 within their projected cost estimates.