ML19331A666

Proposed Findings of Fact W/O Conclusions of Law,Supporting Util 770613 Findings.Confines Issues to Present Assurance That CPC Units Will Operate When Dow Chemical Co Retires Fossil Fuel Generating Plants.Certificate of Svc Encl

ML19331A666
Person / Time
Site:	Midland
Issue date:	06/21/1977
From:	Nute L, Pribila L DOW CHEMICAL CO.
To:	Atomic Safety and Licensing Board Panel
References
NUDOCS 8007180710
Download: ML19331A666 (6)

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UNITED STATES OF AMERICA  ! -

NUCLEAR REGULATORY, COMMISSION $ Ng'2. 5

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T4*Q Before the Atomic Safety and Licensing Board #

y In the Matter o. )

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CONSUMERS POWER COMPANY ) Docket Nos. SG Q -

) 50-330 (Midland Plant, Units 1 and 2))

D0W PROPOSED FINDINGS OF FACT The Dow Chemical Company ("Dow") herewith submits the folicw-ing proposed findings of fact. Dow has limited its proposed findings to those facts and issues with which it is most directly ccncerned at the present time, i.e. the need for present assurance that the nuclear generating units of Consumers F0wer Company will be in commercial operation at the latest by the time at which Dow must retire its fossil-fuel generating plants. In most other respects, Dow generally supports the proposed findings and conclusions submitted by Consumers Power Company on June 13, 1977.

1. Dow is engaged, inter alia, in the manufacture and sale. of a variety of chemical products, and in connection therewith operates a large chemical manufacturing plant in Midland, Michigan.

2. In connection with the operation of its Midland plant, Dow requires a dependable supply of large amounts of steam and electricity.1

3. Some of Dow's electricity requirements and all of Dow's steam requirements are currently obtained from its own fossil-fuel generating plants. However, these facilities are antiquated, and con-tain major pieces of equipment which are 25 to 45 years old.2

4. In order to obtain an adequate supply of steam and power to satisfy the needs of its Midland plant after its present generating facilities are no longer usable, Dcw entered into an agreement with 1 t

80 07180 7/ C h  !

_,- Consumers Power Company providing for the construction by Consumers of nuclear generating plants in Midland which would supply Dow with its steam and electricity needs.3 Under the original agreement, the nuclear generating plants were to be in commercial operation by 1974 and 1975.4 The present schedule new calls for the nuclear generating plants to be in commercial operation by 1981 and 1982. -

5. Dow is presently operating its generating p'lants under a Consent Order with thb Michigan Air Pollution Control Commission which

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grants Dcw a variance from the State emission regulations for particu-lates and sulfur dioxide until July 1,1980. If Dow's existing ,ower facilities are to be operated beyond July 1, 1980, either an addit.ional variance from that Commission will be required or Dow will need to reduce its emissions to comply with all applicable State emission regulations.O Negotiations are presently proceeding with that Com-mission.7

6. Delays in the commercial operation dates of the Midland nuclear generating plants from 1974 to 1982 have been and will be very costly to Dow. By 1982, Dow will have invested $21,000,000 in its existing facilities for boiler modifications, monitoring devices and -

other facilities in order to meet the requirements of the federal and state air pollution regulations. In addition, during that same period, Dow will have spent $125,000,000 in additional operating costs for fuel, maintenance and purchased power for achieving ccmpliance with the same regulations. Finally, Dow will have to expend an additional $31,000,000 -

to upgrade its fossil-fuel fi.cilities in order to attempt to achieve productive reliability through 1984.0 Suspension of the construction license will cause Dow to incur further extraordinary expenses in the operation of its fossil-fuel generating plants.

7. Given the age of the equipment and the present and ex-pected future requirements of the Michigan Ai'. Pollution Control Com-l mission, it will not be possible for Cow to make its existing fossil-fuel generating plants operate safely, economically and reliably beyond the end of 19S4 at the latest.9

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- ' 8. If the Midland nuclear generating plants are not in ccmercial operation by the time Ocw must retire its fossil-fuel gen-erating plants, the end of 1984 at the latest, Dow will be forced to obtain by that date the steam and electricity needed for continued operation of its Midland facility frca other sources. In this event, Dow may be forced to build its cwn new pcwer plants using conventional -

(non-nuclear) technolegy.10 ,

9. Dow recuires censiderable lead time, even under ideal conditions, depending on the power source selected, to construct new -

power plants." Thus, Dow must know well in advance of any changes in the present 1981 and 1982 ccamercial cperation dates in order to reach a proper decision regarding the need to pursue alternative sources of pcwer.

10. A suspension of the construction license significantly increases the possibility that the Midland nuclear generating plants vill not be in comercial operation before Dcw must replace its existing fossil-fuel facilities.12 ,

11. All Dow evidence, testimony, conduct and arguments in this proceeding have been honest, responsible and in accordance with Dow's- -

obligations as a party and a witness.

Respectfully submitted, ,

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THE OGl CE!ICAL COMPANY

.h ib .l g T k i !..cl.lu.C< O L. W. Pribila

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L. F. Nute DATED: June 21, 1977 N'

FOOTNOTES

1. Tr. 2357-58; Dow's response dated February 28, 1977 to NRC Staff Interrogatory No.14.

2. Temple testimony at 3, foll. Tr. 220 ,

3. NRC Staff Exh. 3; Licensee Exh. 7b, 7c

4. Tr. 407

5. Licensee Exh. 30; Board Exh. 4, Figure 4.1-1; .'seeley testimony ,

at III-1 foll. Tr. 3638; Tr. 2931

6. Temple testimony at 4,5 foll. Tr. 220; Licensee Exh. 8a

7. Dow's response dated February 28, 1977 to NRC Staff Interrogatory No.1k; Dow's supplemental response dated March 29, 1977'to NRC Staff Interrogatory 1k and Intervenors Other than Dow Interrogatory

, No. 8

8. Board Exh. 3

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9. Temple testimony at 3, 5 foll. Tr. 220; Dow's response dated January 25, 1977 to Intervenort Other than Dow Interrogatory .

No.1; Tr 2550-51

10. Licensee Exh. 31 at 13-14

11. Licensee Exh. 31 at 25-26 .

12. Temple testimony at 5 foll. Tr. 220; Licensee Exh. 31 at 13-14 ,

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• 'jtjN2 31977 > 3 UNITED STATES OF AMERICA ,, L" cy;;f,.,,, ,1-. g

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NUCLEAR REGULATORY COMMISSION

% s-e- 3 Before the Atomic Safety and Licensino Board os In the ME':ter of ) '

) .

CONSUMERS POWER COMPANY ) Docket Nos. 50-329

) 50-330 (Midland Plant, Units 1 and'2) )

CERTIFICATE OF SERVICE I hereby certify that copies of "DOW PROPOSED FINDINGS OF FACT" dated June 21, 1977 in the above-captioned proceeding, have been served on the followiaq by deposit in the United States mail, first class or air mail, ti..s 21st day of June,1977:

Frederic J. Coufal, Esq., Chairman Atomic Safety and Licensing Board U.S. Nuclear Regulatory Commission Washington, D.C. 20555 ,

Dr. J. Venn Leeds, Jr. Ms. Mary Sinclair Atomic Safety and Licensing Board 5711 Summerset Street 10807 Atwell Midland, MI 48640 Houston, Texas 77096 Dr. Emmeth A. Luebke Harold F. Reis, Esq.

Atomic Safety and Licensing Board Robert Lowenstein, Esq.

.U.S. Nuclear Regulatory Commiss. ion Lcwenstein, Newman, Reis & Axelrad Washington, D.C. 20555 1025 Connecticut Avenue Washington, D.C. 20036 Myron M. Cherry, Esq. Mr. Steve Gadler 1 IBM Plaza 2120 Carter Avenue Chicago, Illinois 60611 St. Paul, Minnesota 55108 Judd L. Bacon, Esq. Atomic Safety and Licensing Consumers Power Ccmpany Appeal Panel 212 West Michigan Avenue U.S. Nuclear Regulatory Jackson, Michigan 49201 Commission Washington, D.C. 20555

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o 3 R. Rex Renfrow, III, Esq.

_-Docketing and Service Section David J. Rosso, Esq. Office of_the Secretary Isham, Lincoln & Beale U.S. Nuclear Regulatory Commission One First National Plaza _ Washington, D.C. 20555 Suite 4200 Chicago, Illinois 60603 Atomic Safety and Licensing Norton Hatlie, Esq. - ~

Board Panel Attorney-at-Law U.S. Nuclear Regulatory Commission P.O. B~x o 103 Washington, D.C. 20555- Navarre, Minnesota 55392 U' -D

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. c K. Miller /

The Dow Chemical Company Legal Department DATED: June 21, 1977

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