ML19319D590

Motion to Admit Exhibit.Ap Perez Statement Should Be Incorporated Into Record as Intervenor Exhibit 2.Statement Encl

ML19319D590
Person / Time
Site:	Crystal River
Issue date:	07/29/1968
From:	Fairman J GAINESVILLE, FL
To:	US ATOMIC ENERGY COMMISSION (AEC)
References
NUDOCS 8003170759
Download: ML19319D590 (13)

Text

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s y ;.p.,f UNITED STATES OF AMERICA ATOMIC ENERGY COMMISSION In the Mat:cr of )

F *.ORIDA POWER CORPORATION ) DOCKET NO. 50-302

'C fs:a1 River Unit 3 Nuclear )

Ceners:ing Plant)

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MOTION TO ADMIT EXIC3IT The City of Gainesville, Florida, and Gainesville Utilities Departmen: ("Cainesville"), Intervenor, pursuant to Sec: ion 2.730 of the Commission's Rules of Practice, hereby move tha: :he Presiding

~i Officer as empowered by Sections 2.718 and 2.721(c) receive t.s an exhibi: in the record the prepared statement of Mr. A. P. Perez, distributed at the hearings held July 16 and 17,1968, ir Crystal River, -

Florida.

1. Counsel for the Applicant during the prehearing conference stated (Tr. 51) that in carrying out its burden of proof it, in par:, would rely on istroduction of this statement.

2. Gainesville believes that ir. complance wi:h :his cc-c'.aration by the Applicant, such a statement mus: properly be in-corporated in the record. ..- ; .._ _ i8N

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5. The sta: Omen; is ConsistCn: With thC tas imony of Mr. J. L. Rodgars e.nd Mr. J. G. Loadar. The inclusion of such a

o. rco. ared s::.: amen; is in accord with Licensinn a Board o. ractice. (Boston

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.. s .s L,,..-, s : G,sc, t,.,.e C.ty o: G am.e svtl,.a anc. :nc Ga,m.e svi.,, .e U:ilitics Departman:, h:arvenors, move :h:.: the prepared statement be incorpore.ted in:o the record as Intervenor's Exhibit No. 2.

Respac:iulbf sub mi;:ad, C .x-s., G:G n .h. .  : S312 a , : -.u G Ra,u,n.

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w STATEMENT OF MR. A. P. PERh4 -

(FOR PUBLIC USE)

GENTLEvfN, I AM A. P. PEREZ, PRESIDENT AND CHIEF EXECUT!VE OFFICER OF FLORIDA POWER CORPORATION, HEADQUARTERED IN ST. PETERSBURG, FLCRICA.

THE KEY WORD IN MY STATEFENT TODAY IS "GRCdTH" - THE RESIDENTIAL, CCF.v2RCI AL, AND INDUSTRI AL GROWTH OF OUR COV.PANY'S SERVICE AREA UP TO nod AND ITS PREDICTED GROWTH IN THE FUTURE. . .AND, OF COURSE, THE EVER-INCREASING DEFAND .OR ELECTRIC SERVICE THROUGHOUT OUR 32-COWTY SYSTEM.

THIS GROWTH IS THE MOST S!GNIFICANT SINGLE FACTOR IN CUR DEC:SION TO CONSTRUCT A NUCLEAR FACILITY TO MEET THESE FUTURE DEFANDS FOR ELEC-TRICITY. IT IS CUR OSLIGATION TO GENERATE THIS ELECTRICITY IN THE MOST EFFICIENT AND" ECONOMICAL FANNER POSSISLE.

FLORIDA POWER COR? ORATION'S GENERATING CAPA31LITY FAS PCRE THAN DOU3 LED DURI M THE PAST TEN YEARS - FROM 700,000 KILOdATTS IN 1957 TO MORE THAN ONE-AND-ONE-HALF MILLION KILOWATTS IN 1967. OUR P MNNED CA?ASILITY SY 1972 - THE YEAR IN WHICH WE EXPECT TO HAVE CUR FIRST NUCLEAR-FUELED PLANT IN OPERATIm - WILL AGAIN COU3LE.. .TO A? PROXIMATELY THREE-MILLION KILOdATTS.

THIS EXPANSICN PROGRAM INCLUDES NOT WLY THE SECOND COAL-FIRED WIT AT OUR CRYSTAL RIVER PLANT, SUT THE INSTALLATION OF FOUR GAS-TUR3INE GENERATORS FOR PEAKING P0 DER PURPOSES...PLUS, OF COURSE, THE 850,000-KILOdATT NUCLEAR UNIT AT CRYSTAL RIVER PLANT.

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THIS GENERATING CVASILITY WILL PROVIDE FOR OUR PREDICTED SYSTEM REQUIREFENTS AS WELL AS CAPACITY SUFFICIENT FOR NECESSARY RESERVES AND FOR PCWER INTERCHANGE WITH NEIGHSCRING UTILITf CCM?ANIES, IN A ?ROGRAM kHICH PERMITS THE INSTALLATION OF *.ARGER CAPACITY UNITS WITH LOdER INITIAL CAPITAL INVESPENT AND HIGHER OPERATING EFFICIENCY.

TO FEET THE DEMANDS OF THIS PREDICTED GROWTH, FLORIDA POWER COR?dRA-TION HAS UTILIZED Mt.NY ADVANCED TECHNIQUES IN THE DESIGN AND O?ERATIGN OF-ITS PCWER GENERATING EQUIPMENT. TO THE 380,000 CUSTav2RS \-lHCM WE SERVE TCDAY, AND TO CURSELVES THE MOST DRAVATIC OF THESE ADVANCEFZNTS

..AS SEEN CUR ANNOWCED DECISIGN TO SUILD A NUCLEAR FACILITY AT CUR NEdEST GENERATING PMNT SITE...THE CRYSTAL RIVER PLANT.

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s THE PUBLIC IL ,ECOMING INCREASINGLY AWARE THA. .;UCLEAR-FUELED POdER GENERATION HAS COME OF AGE WITH MILLIONS CF Av2RICANS AT THIS VERY MCMENT UTILIZING ELECTRICITY GENERATED FRGM NUCLEAR ENERGY.

MANY KNOW THAT BY 1980, THERE WILL BE A PREDICTED NUCLEAR GENERATING -

CADA3ILITY OF ONE-MLNDRED AND FIFTY MILLIGN KILOdATTS hMICH WILL PAKE UP APPROXIMATELY THIRTY PER CENT CF THE TOTAL NATION-WIDE GENERATING CAPACIT( AT THAT TIME.

THE RAPID DEVELOP.v2NT IN NUCLEAR REACTOR TECHNOLOGY AND THE IFPROVED ME HCOS OF PROCESSING AND FABRICATING NUCLEAR FUEL HAVE RESULTED IN SUSSTANTIALLY LOdER OPERATING COSTS OF NUCLEAR PLANTS. THE PROMISE C:

FURTMER REDUCTION IN THE TOTAL COST OF NUCLEAR-FUELED POWER GENERATICN ENCCURAGES THE USE O. THIS NEd ENERGY SOURCE.

FLORIDA POWER CORPORATION HAS LONG BEEN ACTIVE IN STUDYING THE ATOM AS A POTENTIAL ' ENERGY. SOURCE FOR POVER GENERATION. SHORTLY AFTER THE PASSAGE O.: THE ATCMIC ENERGY ACT IN 1954, OUR COMPANY...ALGNG WITH

, TAVPA ELECTRIC CGvPANY, AND FLORIDA POdER AND LIGHT CCMPANY... JOINED TOGETHER IN A STUDY GROUP TO EVALUATE THE PEACEFUL AoPLICATION OF NUCLEAR Eh2RGY IN CUR STATE. -

, THIS GROUP, KNOWN AS THE FLORIDA NUCLEAR PCWER GROUP, ENGAGED IN AN EXTENSIW STUDY WITH THE BASCOCK AND WILCOX COMPANY, ALLIS-CHALFERS, AND STCNE AND WEBSTER ENGINEERING CORPORATION OF THE VARIOUS REACTOR TYPES. THEN, IN 1956, THE FLORIDA NUCLEAR GROUP EMPLOYED THE GENERAL ttJCLEAR ENGINEERING CORPORATION THEN LOCATED IN DUNEDIN, FLORIDA, TO SEGIN CCNCEPTUAL WORK ON A NATURAL URANIlp.-FUELED, GAS-CCCLED, HEAVY WATER MCCERATED REACTOR PLANT DESIGN. A LITTLE LATER, FLCRICA POdER COR?ORATICN ANb TAMPA ELECTRIC COMPANY FORy2D A NEd CRGANIZAT!CN KNOdN AS THE FLORIDA WEST COAST NUCLEAR GROUP, AND REALIGNED THEIR ACTIVITIES WITH THOSE O.: THE EAST CENTRAL NUCLEAR GROUP WHICH WAS MADE U? CF ELEVEN OTHER UTILIT( COMPANIES.

IN DECEMBER, 1957, THESE TWO GROUPS MADE A PROPCSAL TO THE ATGMIC ENERGY CCM.MISSIGN FOR THE DEVELOPMENT, DESIGN, CON 5TRUCTICN, AND OPERA-TION OF A NUCLEAR PLANT. SY EARLY 1961, IT WAS APPARENT FRCM ALL O.

THE CESIGN IN:CRFATICN AVAILASLE AT THAT TIME THAT ENERGY CCSTS WOULD BE CONSIDERA3LY ASOVE THE ECONGMICAL LIMIT ESTABLISHED SY THE FLORIDA 9 y w --v-

WEST CCAST NUCLEAR GROUP AS A CRITERIA FOR CCNSTRUCTION. A REQUEST FOR EXTENDED RESEARCH CN THIS PROJECT WAS REVIEdED SY THE AT CCFMISS!GN, AND IT WAS DECIDED TO DISCGNTINUE FURTHER RESEARCH EX?ENDI-TURES ON THIS ?ROJECT. ALTdCUGH ALL WORK WAS DISCCNTINUZD C JECT, 'ME FLORIDA WE57 CCAST NUCLEAR GROUP STILL EXISTS.

SY 1954, HD..ZVER, THE CCveETITIVE ATMCSPHERE SURRCUNDING NUCLEAR EQUIPMENT SU??L;2RS, CCUPLED WITH CUR NEED FOR 1969 CAPA3ILITY, !ND!CATED TC US T:'AT NLC EAR-FJEED LN!TS SHOULD SE EVALUATED FOR FUTURE ING UNITS. .

TO DE~ ERMINE THE CCF?ARATIVE ECONCMICS, NUCLEAR PCdER WAS THCRCUGHLY EVALUATED AGAINST FOSSIL-FUEL POWER FOR CRYSTAL RIVER PMNT'S SER TdC.

TH!$ FULL-SCALE EVALUATIGN WHICH WAS CCMPLETED IN JULY,,1955, CLEARLY INDICATED T.MT FOSSIL FUEL WAS THE MOST ECONCMIC SELE WIT TdC AT THIS NEW' PLANT. AN ECGNG4ICALLY ATTRACTIVE CCAL CCNTR

?CR LNIT NUM3ER CNE, WITH C?TIONS FOR SIMILAR TERMS FOR THE CCAL REQU MENTS FOR THE SECOND LNIT, PLUS EXISTING CCAL YARD FACILITIES AND NVEN-TCRY ARRANSEMENT ADEQUATE TO SERVE TWO UNITS WERE FAJCR FAC TO THE SE E CTICN OF CCAL AS THE FUEL FOR THE PLANT'S SECCND UNI 7 ANCTHER IMPORTANT FACTOR WAS THAT IN THE 500,000-KILCWATT SIZE RANGE EVALUATED, THE CAPITAL COST ON A COMPARATIVE COLLAR-?ER-K:LOdATT EASIS OF A NUCLEAR-FUEED UNIT WAS SUBSTANTIALLY HIGHER THAN T.-AT C L1R SIZED FCSSIL-FUELED UNIT. .. TOC MUCH HIGHER FOR TH AVAILASLE FROM THE NUCLEAR JIT TC~CFFSET.

IN JULY OF 1965, CUR CCFPANY PANAGEMENT AUTHC SIZED THE PREPARATICN OF SPECIFICATICNS FOR GENERATING EQUIPMENT TO MEET THE PRE SYS~EM REQUIREv5NTS. CUR POdER ENGINEERING AN'O CCNSTRUCTIO hC.M NG WITn Tr:5 HIGHLY QL.iALIFIED ASSISTANCE CF GIL3ERT ASSOCIATES, IN Au C. M. STCLER & ASSOCIATES, PREPARED A DETAILED EVALUATICN CCM?ARING

.%C EAR AND .:CSSIL FUELED GENERATING PLANTS IN THE SIZES RANGING

500,000 KILOdATTS 70 850,000 XILodATTS.

GILSERT ASSOCIATES'MADE SITE CCMPdRISCN EVALUAT:CNS FCR NU

'GENERAT!NG LN!T ADDITICAS AT THREE OF CUR ?LANT SITES. . . CUR HIGG!

PLANT IN CLDSMAR AT THE NORTH END OF TAV?A SAY, CUR SACTC'd PLANT IN ST. PETERS 3URG, AND THE CRYSTAL RIVER PLANT- SITE. SPECIFICATICNS w&2 I

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WRI TEN FOR THE JCLEAR STEAM SUPPLY SYSTEM R4D GINE-GENERATOR, /ND j COMPETITIVE BIDS WEPE RECEIVED FROM GENERAL , WESTINGHOUSE ELEC ELECTRIC, COMBUSTION ENGINEERINS, AND THE B/SCOCK f, WILCOX .

S. M. STOLLER T, ASSOCIATES PREPARED DETAILED EVALUATIO FUEL OPTICNS.

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. A NU43ER OF DECISIONS HAD TO DE PACE FROM FIRST OF ALL, THE DECISICN HAD TO SE FADE TO SELECT EITHER FOSSIL FUEL AS THE MOST ECONG4!C SOURCE OFTO A SITE HAD ENERGY.

BE SELECTED SASED ON.SUCH FACTORS AS THE AVAIL CONDENSItG THE STER 4, THE OVEPALL SYSTEM TRANSMISSION RE DELIVER POdER FROM THE GENERATING PLANT TO THE LOA

, THE SUIT-ABILITY OF THE SITE FOR THE ItSTALLATICN OF A NUCL THE STANDPOINT'0F THE ATG4IC ENERGY COMMISSIGN , AND DEEP WATER ACCESS FOR WATER DELIVERY OF A REA REACTOR COMPCNENTS.

NEXT, THE SIZE OF THE UNIT HAD TO BE DECIDED IN THE BEST INT ,

NOT ONLY OF FLORICA POdER'S 1972 GENERATION NEEDS, BUT ESP ING INTO ACCOtNT THE FORECASTED GROWTH OF TH THE NEXT 20 YEARS.

A FANUFACTURER OF THE TURBINE GENERATOR HAD TO BE SE ALSO A FANUFACTURER HAD TO BE TAMED FOR THE FINALLY, THE MOST EC0tO11C NUCLEAR FUEL OPTICN FOR THE IN CORE AND FUTURE CORES IN THE NUCLEAR GENER .

EVALUATIO4 0F THE ECONOMICS OF NUCLEAR VERS EVERY MEANS AVAILASLE TO SIMULATE THE ELECTR UJITS FOR THE ENTIRE LIFE OF THEIR OPERATION. SYSTFJ4 LOAD tODELS WHICH REPRESENTED THE EXPECTED LIFETIME GENERATION WERE THE PRIF2 PA.VFETERS USED IN FMING THIS EVALUAT IN THIS STUDY, CONSIDERATIG WAS GIVEN TO .THE ESTIMATED DIFFERENCES LIFETIME LOADINGS OF ALL SYSTEM GENERATING LNITS, BOTH NUCL-M AND FOSSIL. BASED G4 PREDICTIONS OF P2DUCED REQUIR INCOS IN3 LaTER TS . YEARS - BECAUSE OF THEIR HIGHER PitATIVE

THE LOAD M3 DEL ACCOU1TED FOR DIFFERENTIAL ENERGY USING THE BEST AVAILABLE INFORMATICN CN THE FUEL COSTS TO ESTABLISH A DIFFERENTIAL ENERGY COST. ESTIMATED PLANT CAPITAL COSTS FOR BOTH NUCLEAR AND

. FOSSIL UNITS WERE DEVELOPED USING ELABORATE BREAKDOWNS- ON SYSTEMS AND EQUIPMENT COSTS TO ACHIEVE tRXIMui RESOLUTION IN EACH AREA.

OPERATIG4 AND FNNTENNNCE COSTS, INCLUDING SPECIALIZED 1 RAINING, FOR NUCLEAR PLANT O?ERATICNS AND ENGINEERING STAFF WERE C'GEFULLY ESTIMATED,

. ..THESE TCCK INTO ACCOU4T INFLATIG4ARY TRENDS IN LASOR AND FATERIAL

.' COSTS . THE EFFICIENCY OF EACH UJIT WAS ESTIMATED BASED ON MANUFACTURERS' PREDICTED PERF' ORMANCE AT. EACH LOAD, AND THESE EFFICIENCIES' WERE APPLIED TO THE CALCULATIG45 OF GENERAT!?G COST BASED GN THE GENERATION LOAD MODEL.

FOSSIL FWL COSTS WERE ESTIMATED FOR A RANGE OF ESCALATION PREDIC-TIG4S-IN ORDER TO COVER A LARGE CROSS SECTION OF COMPARISONS. NUCLEAR FUEL COSTS WERE EVALUATED FOR A NU4SER OF COM31 NATIONS OF FUEL ENP,ICH-MENTS...TAKING INTO ACCOUNT NOT ONLY INITIAL COST OF THE NUCLEAR FUEL, BUT ALSO THE CAPITAL CHARGES OF A NUCLEAR FUEL INVENTORY IN THE REACTOR, AND THE FUEL REPROCESSING COSTS, INCLUDING ESTIMATES FOR TFE CREDIT FOR RECYCLE URANIU4 AND PLUTG4IU4.

THE' NUCLEAR FUEL COST EVALUATION SASICALLY INVOLVED TWO METHODS OF FUEL t%NAGEMENT, BOTH OF WHICH WERE THOROUGHLY EVALUATED. THE FIRST-IN\0LVED THE SUPPLYItG OF A TOTAL FUEL PACKAGE BY THE NUCLEAR STEAM

'SUo?LY -SYSTEM SUPPLIER WITH THE COSTS FOR ENRICHMENT AND REPROCESSING

?ASSED ON TO US AT THEIR COST. THIS GAVE US FUEL ESSENTIALLY ON A CEES-PER-MILLION-BTU BASIS, AND WOULD RESULT IN A RELATIVELY FIXED

GST FOR FUEL OVER THE SPAN OF THE CONTRACT.

V THE SECOND ALTERNATI' E OF FUEL MANAGEMENT WAS WITH OUR CCMPANY OPERATING AS ITS CHN FUEL MANAGER, USING TO BEST ADVANTAGE THE COM-PETITIVE ATMOSPHERE WHICH N04 EXISTS FOR EACH OF THE STEPS IN THE ,

NUCLEAR FUEL CYCLE. THIS RESULTS IN THE MAXIMU4 CONTROL SY THE UTILITY

' OVER ITS ULTIMATE FUEL COSTS THROUGHOUT THE LIFE OF ThE PCWER PLANT USING ITS ABILITY TO CONTRACT FOR EACH STEP U4 DER THE BEST TERMS AND CONDITICNS AVAILABLE.

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3 ANOTHER CONDITICN WHICH WAS FACTORED INTO OUR EVALUATION WAS THE LEASING OF ENRICHED URANIUM FROM THE ATG4IC ENERGY COMMISSION FOR TH FIRST FUEL CORE ON WIT NW3ER THREE.. .TEP,MS AND CONDITICNS OF WHICH INVOLVED THE MINIMU4 OUTLAY OF INITI AL CAPITAL FOR FUEL CCMPARED TO THAT REQUIRED FOR TOTAL PRIVATE OWNERSHIP OF FUEL. IN ALL CASES, OF COURSE, .THE ENRICr.".ENT OF THE URANIUM MUST BE DONE IN THE A.E.C.

FACILITIES AND PAID FOR BY THE UTILITY AT THE RATE FIXED BY THE A.E.C.

IN ITS REGULATiCNS.

THE ANNUAL COSTS, INCLUDING CAPITAL, FUEL #4D OPERATION #40 VAIN-TENANCE COSTS WERE EVALUATED FOR EACH WIT WDER CONSIDERATION R4D TOTALIZED FOR A PERIOD OF 20 YEARS. THE TOTAL LIFETIME COSTS AND THE PRESENT WORTH OF THESE COSTS OVER A 20-YEAR PERIOD WERE EVALUATED IN EACH CASE. USItG COMPUTER TECHNIQUES, A TOTAL OF 52 CCMPLETE CASE I

STUDIES FOR EACH SUPPLIER WERE EVALUATED USING VARIOUS COMSINATIONS OF PLANT COSTS, FUEL COSTS, CAPITAL, ESCALATION ASSUPPTIONS, AND FUEL OPTIO4S FOR EACH OF THE WITS PROPOSED. CCMBUSTION ENGINEERING, GENERAL ELECTRIC, AND WESTINGHOUSE ELECTRIC EACH PROPOSED A 600,000-KILOdATT NCMINAL SIZE N4D #1850,000-KILCWATT NO4INAL SIZE ' WIT.

SABCOCK AND WILCOX PROPOSED ONLY THE 850,000-KILOdATT SIZE. THIS l.-

MADE A TOTAL OF SEVEN NUCLEAR UNITS TO BE EVALUATED.

k AS A RESULT OF THIS STUDY, FLORIDA POWER CORPORATION PLACED AN ORDER ON FEBRUARY 23, 1967, FOR THE PURCHASE OF AN 850,000-KILOdATT NUCLEAR UNIT. THE NUCLEAR STEAM SUPPLY SYSTEM WAS PURCHASED FROM

.BASCOCK AND WILCOX'CCNPANY...AND THE TURBINE GENERATOR FRCM WESTItGHOUSE ELECTRIC CORPORATICN.

THIS DECISIO4 DEPANCED AN IVMEDIATE EFFORT TO PREPARE THE NECESSARY APPLICATICH AND PRELIMINARY SAFETY ANALYSIS REPORT TO OBTAIN THE LICENSES TO CONSTRUCT, OWN, USE AND OPERATE A NUCLEAR FACILITY AT CRYSTAL RIVER.

TO MANAGE THE DESIGN AND CONSTRUCTION OF THIS OPERATION, A SPECIAL ,

NUC_ EAR PROJECT TEAM WAS ESTABLISHED AT FLORIDA POdER CORPORATICN.

Th.S:SPECIA: IZED TYPE OF.VANAGEMENT TEAM IS HEADED BY MR. JOEL T. RODGERS, OCR NUCLEA9, PROJECT PANAGER AND DIRECTOR OF THE POWER EN';INEERING AND CONSTRUCTIGN DEPARTMENT.

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THE RUCLEAR ' ' JECT TE/N IS MADE UP OF APPRO' TELY TWELVE REPRE-SENTATIWS, EACH DESIGNATED FROM A MAJOR CORPORATE DEPARTMENT. THESE PEN ADVISE AND ASSIST THE NUCLEAR PROJECT FANAGER IN MATTERS I IN EACH DEPARTFENTAL AREA 0F RESPONSIBILITY.IN ADDITION, THE EXTERNhL CCNSULTANTS AND, OF COURSE, THE COPPANY'S POdER ENGINEERING AND CONSTRUC-TION DEPARTFENT ARE VITAL MEMSERS OF THIS NUCLEAR PROJECT TEAM.

RESPONSIBLE PERSONNEL FROM ALL DEPARTMENTS ASSOCI ATED WITH THE DESIGN, PURCHASE, CONSTRUCTION, LICENSING, OPERATION, AND MAINTENN4CE OF FLORIDA PC.lER'S GE?ERATING FACILITIES HAVE PARTICIPATED IN OU EDUCATION PROGRAM. 44D KEY PERSONNEL IN EESE VARIOUS DEPARTFE CONTINUING inEIR STUDY OF NUCLEAR POdER THROUGH INDUSTRIAL CONTACTS, AND ATO41C INDUSTRI AL FORU4, INC. SEMINARS, CONFERENCES, ETC.

OUR OdN NUCLEAR PCWER EDUCATIONAL COttt!TTEE, UNDER THE AUSPICES AND DIoECTIO4 OF OUR NUCLEAR PROJECT MANAGER, ALSO MAINTAINS PROGRAMS OF REQUIRED CONTINUQUS EDUCATION IN THE NUCLEAR POdER AREA.

THIS AREA 0F EDUCATICN HAS SERVED TO DISSEMINATE INFORMATION THROUGHOUT THE COFPANY CN DEVELOPMENTS IN THE DESIGN, CONSTRUCTION AND OPERATICN OF NUCLEAR P0 DER STATICNS. THESE INTERNAL COURSES HAVE EXTENDED TO ESTED PERSONNEL IN ALL CCMPANY DEPARTPENTS: LEGAL, TREASURY, REAL ESTA PUBLIC RELATICNS, ACCOU4 TING, SALES, DIVISION OPERATIONS, ETC.

MANY OF OUR PEOPLE HAVE TAKEN SHORT COURSES, ATTENDED SEMINARS, PARTICIPATED IN INDUSTRY COFMITTEES, AND HAVE MADE FREQUENT VISITS TO VARIOUS NUCLEAR POWER STAT'ICNS IN THE UNITED STATES TO KEEP ASR DEVELOPMENTS IN THE NUCLEAR POdER FIELD.

IN ADDITICN, PUBLICIT/ RELEASES AND SPECIAL INTERVIEWS WITH NUCLEAR PROJECT PERSCNNEL HAVE RESULTED IN CONSIDERABLE PUBLIC ATTENTION

. INFORMATICN REGARDING EVERY MAJOR PHASE OF DEVELOPMENT AT THE PLAN SITE. IT'HAS BEEN ESTIMATED THAT PORE THAN 20,000 VISITORS A YEAR HA'E BEEN TO THE CRYSTAL RIVER PLANT, AND TOURS THROUGH THE PRESENT FACILITIES HAVE BEEN NU'EROUS BY CIVIC AND PROFESSICNAL GROUPS. AT THE PRESENT tit'E, ENGINEERS ASSOCI ATED WITH THE NUCLEAR PROJECT ARE ALSO WORKING

- IN DIRECT COOPERATICN WITH THE PUBLIC RELATIONS DEPARTMENT BY PRESEN ING SPEECHES, SLICE-ILLUSTRATED TALKS, AND MOTION PICTURES TO CIVIC -

CLUBS THROUGHOUT THE CCMPANY SYSTEM. INFORMING THE PUBLIC ASOUT THE ACTIVITIES AT FLORIDA POWER IS ANOTHER FORM OF EDUCATION.

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KEY PERSONNE^ TROM FLORIDA POdER mfd ARE HER" N) DAY HAVE AUDITED SEVERAL ATOMIC ENERGY COM41SSION LICENSING PROCEEDINGS IN THE U11TED STATES,. INCLUDING THOSE OF FLORIDA PCdER AND LIGHT, DUKE POdER COMPANY, VERMONT-YANKEE NUCLEAR PodER CORPORATION, PETROPOLITN1 EDISON, ETC.

WITHIN THE PAST YEAR PANY OF OUR PERSONNEL HNE U; DER ,0NE HIGHLY SPECI ALIZED TRAINING PROGRN45 IN NUCLEAR POdER IN CLASSROOMS WHERE INSTRUCTIO4 WAS G* VEN BY EXPERTS FROM BABCOCK AND WILCOX COMPANY, GILBERT ASSOCIATES, ETC.

THIS SL AER, THREE OF OUR E!GINEERS WILL RECEIVE THE BACHELOR DEGREE IN NUCLEAR ENGINEERING FROM THE I.NIVERSITY OF FLORIDA.

FROM A PERSO1AL POINT OF VIEW, I HAVE PARTICIPATED IN SPECIAL NUCLEAR SEMINARS SPONSORED BY THE ATO4IC INDUSTRI AL FORUM AND THE SOUTHERN INTERSTATE NUCLEAR BOARD FOR THE PAST THREE YEARS. I HAE ALSO ATTENDED THE BOILING WATER REACTOR SEMItMR AT GENERAL ELECTRIC COMPANY, AND I HAVE REPRESENTED FLORIDA POWER CORPORATION AT MEETINGS OF THE EDISON ELECTRIC INSTITUTE POLICY COMMITTEE ON ATCMIC POWER SINCE 1965. I AM A PEMBER OF THE FLORIDA ENGINEERING SOCIETY, THE NATIONAL SOCIETY OF PROFESSIONAL ENGINEERS, THE AVERICAN NUCLEAR SOCIETY, ATOMIC INDUSTRIAL FORUM, THE AVERICAN PN4AGEMENT ASSOCIATION, THE (INTERNATIONAL CONFEPENCE ON LARGE ELECTRIC SYSTEMS) C.I.G.R.E., COR CONFERENCE INTEPNATIO4 ALE DES GRANDS PZSEAUX ELECTRIQUES), AND I #4 A REGISTERED PROFESSIONAL EtGINEER IN THE STATES OF FLORIDA M4D GEORGIA.

. THE ABILITIES, THE EdTHUSIASM, #1D THE CONFIDENCE OF OUR FLORIDA PCs.ER PERSO4NEL IN "GOltG NUCLEAR" ARE WITHOUT QLESTION. AND OUR CORPORATIO4'S ANALYSES, VIEWS, AND CONCLUSIONS ON THE ACCEPTABILITY OF GOING INTO NUCLEAR POWER GENERATIOJ ARE THE SAv5 AS THAT SHARED BY OTHER INVESTOR-OdNED ELECTRIC UTILITIES THROUGHOUT THE UNITED STATES.

THE INDUSTRY'S CONFIDENCE IN NUCLEAR POLER IS EVIDENT IN THE FACT THAT MORE THAN 50 PER CENT OF ALL THE NEW GENERATIBG CAPACITY CCM4ITTED BY THESE UTILITIES IN THE UNITED STATES DURItG 1967 WAS NUCLEAR.

AS I MENTIONED EARLIER, ONE OF THE BASIC UNDERPINNINGS IN THE GCdTH OF ANY ELECTRIC UTILITY IS POPULATION GROWTH. IN OCTOBER, THE U.S. DEPARTFENT OF CCM'ERCE ISSUED NEd POPULATION ESTIMATES TO 1970 AND 1985, PROJECTItG FLORIDA TO BE THE NUMBER ONE STATE IN NET MIGRA-TION RATE BETdEEN 1965 AND 1985. OUR STATE IS RANKED SECOND ONLY TO CALIFORNIA IN THE ACT AL NU/3ERS OF NET MIGRATION DURItG THAT PERIOD.

FOR EXAMPLE, BETWEEN APRIL 1,1960, AND JULY 1,1967, THE AREA SERVED BY FLORIDA P0 DER CORPORATICN GP2h IN POPULATION BY 19.9 PER CENT, _ WHILE THE UNITED STATES AS A kHOLE WAS GROWING AT THE RATE OF 10.3 PER CENT.

DURING THE 7d0 FIVE-YEAR PERIODS, 1965-1970 AND 1970-1975, THE SERVICE AREA OF FLORIDA POdER CORPORATICN IS EXPECTED TO GROW, IN EACH PERICD, AT THE RATE OF 15 1/2 PER CENT...ABOUT ONE PER CENT FASTER TrV.. THE STATE OF FLORIDA AS A hh0LE AND SUBSTANTIALLY FASTER THAN THE U.vITED STATES AVFRAGE.

THERE WAS AN INCREASE IN AVERAGE ANNUAL RESIDENTIAL CUSTOv2RS OF FORE THAN 15,000 IN 1967 AS CCF?ARED TO 13,000 IN 1966.

SALES TO ALL CLASSIFICATIONS OF CUSTOYERS INCREASED AGAIN IN 1967.

HIGHLIGHTING THE INCREASES WERE EXCEPTIONALLY FINE GAINS IN WDUSTRIAL 1

OLVELOPPENT, NEW SHOPPING CENTERS, RESIDENTIAL SUBDIVISIONS, AND NEW AP/RTMENT BUILDINGS. THE PHOSPHAT" INDUSTRY LED THE WAY IN INDUSTRIAL ACTIVITY, WITH PHOSPHATE CUSTOMERS SPf. DING A TWENTY-FIVE PER CENT INCREASE IN KILOdATT-HOUR CONStF?TIOt. LAST YEAR.

THE AVERAGE ANNUAL KIL0dATT-HODR USE RESIDENTIAL CUSTOV2R FOR THE 12-PONTH PERIOD ENDING DECEFSER 31,196/, WAS 6,739 - WHICH IS WELL A50VE THE NATIONAL AVERAGE FOR 1967 OF APPROXIPATELY 5600 KhH.

ON MARCH 1, 1968, OUR COMPANY'S HOURLY PEAK HAD REACHED 1,388,000 KILOdATTS...AND THis IS SUBSTANTIALLY HIGHER THAN THE P?2VIOUS SYSTEM PEAK OF 1,254,000 KILOdATTS WHICH OCCURRED DURING JULY OF 1967.

CONSTRUCTION WILL BE FINANCED AS AN INTEGRAL PART OF THE CCFPANY'S TOTAL CONSTRUCTICN PROGRAM. WE ESTIMATE THAT APPROXIPATELY FORTY-FIVE PER CENT OF THE FUNDS REQUIRED FOR THE CONSTRUCTION PROGRAM THROUGH 1972 WILL BE OBTAINED FROM RETAINED EARNINGS, PROVISIONS FOR DEPRECIA-T!ON, AND OTHER INTERNAL SOURCES, AND APPROXIMATELY FIFTY-FIVE PER CENT

' ..OUGH SHORT-TERM BORROWINGS AND THE ISSUANCE AND SALE OF SECURITIES.

e CUR FIENCIAL, OFFICER, MR. J. G. LOADER, SECRETARY AND TREASURER, WILL TESTIFY, THE TYPE OF SECURITIES TO BE ISSUED WILL DEPEND UPON MARKET CONDI-TICNS AT THE TIME OF SALES AND WILL BE CONSISTENT WITH THE MAINTEMNCE OF DESIRASLE CAPITALIZATION RATIOS.

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OUR CONTINUOUS MODEW4IZATICN AND EXPN! SIGN PROGRAM INCLUDES NSI TRANSMISSION LINES, NEW DISTRIBUTICN LINES, NEW SUBSTATIONS, NEW COMMUNI-CATIONS SYSTEMS, COMPLETti DATA PROCESSING FACILITIES, AND SEVERAL TYPES OF COvPUTERS USED FOR MANAGEMENT AND OPERATING FU4CTIONS. EACH OF THESE IS OESTINED TO KEEP FLORIDA POWER CORPORATION AS CNE OF TriE VOST MODERN AND EFFICIENT ELECTRIC UTILITY COMPANIES IN THE WORLD, SO THAT OUR CUC0MERS WILL BENEFIT WITH THE FINEST ELECTRIC SERVICE AVAILASLE IN THE INDUSTRY TODAY.

THE CONSTRUCTION ACTIVIT( AT CUR CRYSTAL RIVER PLANT SITE SINCE 1964 HAS ATTRACTED CONSIDERABLE ATTENTION AND INTEREST GN THE' WEST COAST OF FLORIDA, 44D ESPECIALLY BY RESIDENTS, CITY OFFICIALS, CIVIC ORGANIZATIONS, AND NS/S KDIA. COAL-FIRED U4IT NUMBER ONE WAS DEDICATED IN NOVEMSER,1966, AND CEREMONIES WERE ATTENDED BY HU4DREDS OF NATIONAL, STATE, COU4TY, INDL'STDV, AND LOCAL DIGNITARIES, AS WELL AS PEMSERS OF THE NEWSPAPERS, RADIO, AND TELEVISION. CONSTRUCTION ACTIVIT( ON COAL-FIRED UNIT NUGER TWO.WAS U4DERWAY EVEN WHILE DEDICATION CEREFONIES FOR U4IT NU43ER ONE WERE TAKING PLACE. THIS SECOND UNIT WILL GO INTO COM-MERCIAL OPERATICt! IN 1969, AND IS ATTRACTING CONSIDERABLE ATTENT;0N.

OUR ANNOU4CEFENT TO APPLY FOR A CONSTRUCTION PERMIT AND LICENSE TO BUILD A NUCLEAR FACILITY AT THIS SAv2 SITE WAS EQUALLY EXCITING FOR RESIDENTS AND VEMSERS OF THE PRESS. AS I KNTIONED EARLIER, OUR RES-PONSIBILITIES TO THE GEERAL PUBLIC HNE LONG BEEN RECOGNIZED. WE ARE PAKING EWRY EFFORT, THROUGH NEWS RELEASES, BOOKLETS, SPEEOiES TO CIVIC ORGANIZATICNS, ETC., TO KEEP OUR CUSTCMERS AND THEIR ORGANIZATIGNS FULLY ADVISED AS TO PROGRESS AT CRYSTAL RIVER AND THE STATUS OF OUR WORK WITH ALL GOVERNVENT AGENCIES SO THAT CUR FIRST NUCLEAR-FUELED UNIT WILL GO

, INTO OPERATION IN 1972. . WE AT FLORIDA POWER CORPORATION FEEL TMST EDU-CATION ON NUCLEAR PCWER IS NOT ONLY VITAL TO OUR CWN MEN AND WCl4EN, BUT

.5 ESPECIN.LY VITAL TO THE CUSTOPERS AND COFXLNITIES WE SERVE.

FOR EXAv?LE, A FACT FOLDER ON NUCLEAP. P] DER AS RELATED TO OUR ACTIVITIES AT LRYSTAL RfVER WAS PRODUCED LAST FALL AND DISTRIBUTED TO STATE, COU4TY, AND CIVIC LEADERS FOR THEIR REFERENu AND INFORMATION. THE BOOKLET IS ALSO AVAILABLE TO VISITORS TO THE CRYSTAL RIVER PLANT. ANOTriER EXAMPLE .IS A" EDUCATIONAL CCMIC BOOK WHICH AAS PRODUCED THIS YEAR AND J \

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DISTRIBUTED, DURING NATIO4AL ELECTRICAL WEEX, TO THE SCIENCE CLASSES IN THE JUNIOR AND SENIOR HIGH SCHOOLS THROUGHOUT OUR WE32-COU4T BELIEVE WE ARE THE FIRST ELEC1RIC UTILITY CGPANY IN THE U4ITED TO HAVE THESE BOOKLETS.

IN ADDITION, OUR MDNTHLY EF?LOYEE MAGAZINE, "PCWER LINES", P,USLIS:ZS STORIES AND FEATURE ARTICLES ON TRAINING PR AND' OTHER ACTIVITIES DIRECTLY RELATED TO OUR WORK WITH IN CONJL .CTICN WITH THESE PROGRAMS, ARE OUR EFFORTS IN THE AREA OF RECREATION /.50 CONSERVATION, AND THE OPPORTUNITIES WHICH THE CC'?ANY MA HAVE FOR FURTHERING THESE ITEMS ALONG THE WEST COAST OUR OF FLOR PERSONNEL A3E WORKING VERY CLOSELY WITH GOVERNMENTAL AGEN BE ASSURED THAT RECPEATION AND CONSERVATIQ4 ARE NOT U4 DUL THE CONSTRUCTICN AND OPERATION OF THE NUCLEAR PLANT AT THIS THE ECONGi!C IMPACT OF THIS NEW PLANT 0" THE CRYSTAL RIVER AREA, CITRUS COU4TY AND ADJOINING COU4 TIES HAS BEEN TREMENDOUS. CONSTRUCTION PAYROLL, ALONE, AT THIS PLANT FOR THE NEXT. FIVE YEARS IS APPROXIMATELY FIVE MILLION DOLLARS ANNUALLY!

THE CRYSTAL RIVER PLANT OF FLORIDA POVER CORPORATION IS A MA FOCAL POINT AND A VITAL RESOURCE ON FLORIDA'S WEST THECOAST.

TOTAL GROWTH POTENTIAL IN OUR SYSTEM BY RESIDENTIAL, COMMERCIAL, AND INDUS-TRIAL USERS INDICATES THAT ELECTRIC POVER DEFANDS ARE GO AT A SUBSTANTIAL RATE. WE AT FLORIDA POdER CORPORATION WIL AND NUCLEAR GENERATION  : WILL PLAY A MAJOR ROLE IN THE CONTI OF OUR OPERATIQ4S.

THANK YOU VERY MUCH FOR THIS OPPORTU4IT( TO PRESENT A STAT GN SEHALF OF OUR MANAGEMENT AND STAFF AT FLORIDA POWER CORP

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