ML20087H620

Forwards News Release Re Joint Owners 840301 Meeting, Notification of ASLB & Svc List.Estimated Date for Initial Operation of Unit 1 Is Jul 1986

ML20087H620
Person / Time
Site:	Seabrook
Issue date:	03/14/1984
From:	Devincentis J PUBLIC SERVICE CO. OF NEW HAMPSHIRE, YANKEE ATOMIC ELECTRIC CO.
To:	Knighton G Office of Nuclear Reactor Regulation
Shared Package
ML20087H624	List: ML20087H620 ML20087H626
References
SBN-637, NUDOCS 8403210099
Download: ML20087H620 (9)

Text

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t, PUE5LIC BERVICE SEABN SMM

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Companyof New Hampshire 1671 Worcesser Road Framinoham, Massachusetts 01701 (617) -872- 8100 March 14,1984 SBN- 637 T.F. El.2.1 United States Nuclear Regulatory Commission Washington, D. C. 20555 Attention: Mr. George W. Knighton, Chief Licensing Branch No. 3 Division of Licensing

References:

(a) Construction Permits CPPR-135 and CPPR-136, Docket Nos. 50-443 and 50-444

Subject:

March 1,1984, Meeting of The Seabrook Joint Owners

Dear Sir:

As has been our practice in the past, we have enclosed a copy of the news release regarding the March 1, 1984 meeting of the Seabrook Joint Owners.

We have also enclosed a copy of the notification that was made to the Atomic Safety and Licensing Board and Service List for the Seabrook proceeding.

The news release delineates revised cost estimates and completion schedules which were presented to the Joint Owners.

Very truly yours, YANKEE ATOMIC ELECTRIC COMTANY

} W John DeVincentis Project Manager cc: Atomic Safety and Licensing Board Service List 8403210099 840314 PDR ADOCK 05000 4

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William S. Jordan, III, Esquire Brentwood Board of Selectmen EHarmon & Weiss RED Dalton Road 1725 I Street, N.W. Suite 506 Brentwood, New Hampshire 03833 Washington, DC 20006 Roy P. Lessy, Jr., Esquire Office of the Executive Legal Director Edward F. Meany U.S. Nuclear Regulatory Commission Designated Representative of Washington, DC 20555 the Town of Rye 155 Washington Road

-Robert A. Backus, Esquire Rye, NH 03870 116 Lowell Street P.O. Box 516 Calvin A. Canney Mancehster, NH 03105 City Manager City Hall Philip Ahrens, Esquire 126 Daniel Street Assistant Attorney General Portsmouth, NH 03801 Department of the Attorney General Augusta, ME 04333 Dar.a Bisbee, Esquire Assistant Attorney General Mr. John B. Tanzer Office of the Attorney General Designated Representative of 208 State House Annex the Town of Hampton Concord, NH 03301 5 Morningside Drive Hampton, NH 03842 Anne Verge, Chairperson Board of Selectmen Roberta C. Pevear Town Hall Designated Representative of South Hampton, NH 03842 the Town of Hampton Falls Drinkwater Road Patrick J. McKeon Hampton Falls, NH 03844 Selectmen's Office 10 Central Road Mrs. Sandra Gavutis Rye, NH 03870 Designated Representative of the Town of Kensington Carole F. Kagan, Esq.

RFD 1 Atomic Safety and Licenaing Board Panel East Kingston, NH 03827 U.S. Nuclear Regulatory Commission Jo Ann Shotwell, Esquire Assistant Attornay General Mr. Angie Machiros Environmental Protection Eureau Chairman of the Posed cf Selectren Department of the Attorney General Toen of Newbury i One Ashburton Place, 19th Floor Newbury, MA 01950 Boston, MA 02108 Town Manegcr's Office Senator Gordon J. Humphrey Town Hell - Friend Street U.S. Serate Amesbury, Ma. 01913

- Washington, DC 20510 (Attn: Tem Eurack) Senator Gordon J. Humphrey 1 Pillsbury Street Diana P. Randall Concord, NH 03301 70 Collins Street (Attn: Herb Boynton)

SEabrook, NH 03874 Richard E. Sullivan, Mayor Donald E. Chick City Hall Town Manager Newburyport, MA 0195J Town of Exeter 10 Front Street Exeter, NH 03833 >

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g Contacts:

Nicholas J. Ashoch (603) 669-4000, Ext. 2572 John B. Cavanagh (603) 474-9527., Ext. 2730 Release: 984-31 March 1, 1984 For Immediate Release _

Seabrook Station owners do not adopt new estimates, vote against cancelling Unit Two.

The Seabrook Station owners, following the advice of a consultant

. hired to oversee construction of the nuclear plant, did not adopt recently revised cost and schedule estimates for the project at a meeting.in Manchester, N.H., March 1. In addition, the owners voted down a resolution to cancel Seabrook Unit Two.

The.new estimates, presented to the owners at the meeting, indicate that Seabrook's first unit will begin operating in July 1986 at a cost of about $4.4 billion. If the reduced construction level on ,

Unit Two is maintained as planned until fuel is loaded in Unit One, the new estimates indicate a similar cost of $4.4 billion for Unit Two, and a completior. date of December 1990. The estimate also adds a management reserve of $200 million.

(MORE) i 1000ElmSt.,P.O. Box 330 Monchester,NHO3105 Telephone (603)669-4000 TWX71022O7595 L

m n RELEASE: 484-31 * *

,, 1 1 At a news conference following the owners meeting Robert J.

Harrison,; president of lead Seabrook owner Public Service of New Hampshire, said that there is substantial reason to consider the new

-cost estimates " unrealistically high," an assessment, he said, which is also shared by the company's newly hired Seabrook construction chief, William B. Derrickson. ,

"The new estimates assume a continuation of past practices at the site,"

Harrison said. "They do not take into account significant changes in management structure and technique which have and will continue to be implemented at the project. As a result, Management Analysis Company (MAC) recommended that no cost and schedule revision be adopted until the new management improvements are taken into account," he said.

"If we proceeded in a ' business-as-usual' manner, these estimates might prove accurate," Harrison said. "But we have already made adjustments, cuch as the restructuring of management at the site and, most important, the hiring of Bill Derrickson, which are not taken into account in there astimates and which we are convinced will improve them. And there will be more changes to come," he said.

Derrickson, who joined PSNH on March 1, is considered an expert in nuclear power plant construction and was recently honored as " Man of the Year" by cn engineering magazine for building a Florida nuclear power plant in six years, an industry benchmark.

"In the'following months we will be refining the Seabrook cost and schedule estimates with the input of Bill Derrickson," Harrison said. In the ceantime, these new estimates will serve as a guideline of Seabrook's cost cnd schedule." ,

The new estimates were compiled under the direction of employees of PSNH, cided by the project architect / engineer United Engineers and Constructors,

[ cnd Yankee Atomic Electric Company.

l (MORE) l

RELEASES.#84-31 .

The last official estimate of Seabrook's cost and schedule, released in November 1982, indicated Seabrook's two units would begin operating in December 1984 and July 1987 at a cost of $5.24 billion.

Four Seabrook owners, Central Maine Power Co., United Illuminating Co.,

Connecticut Light & Power Co., and New England Power Co., sponsored a resolution to cancel Seabrook's second unit. Seabrook participants holding 39.86 percent of plant ownership voted in favor of the resolution while owners holding 44.83 percent voted against cancellation and 18.24 percent of the ownership abstained. An affirmative vote'af 80 percent of the cwnership interest is required to cancel the unit.

Voting to cancel Seabrook Unit Two wera: The United Illuminating Co., t!ew England Power.Co., Central Maine Power-Co., Connecticut Light and Power Company, Maine Public Service Company, and Fitcburg Gas and Electric Light Company. Voting against cancellation were: PSNH, Canal Electric Company, New Hampshire Electric Cooperative, Vermont Electric Cooperative, Taunton (Mass.) Municipal Lighting Plant Commission, cnd Hudson (Mass.) Light and Power Dept. Abstaining were:

Massachusetts Municipal Wholesale Electric Co., Montaup Electric Co.,.Bangor Hydro-Electric Co., and Central Vermont Public Service Corp.

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I SEAEROOK GTATISN .

i APPROXIMATION OF PROJECT l COST TRENDS l

1 1973-1984

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COST TRENDS i

4 1973-1984 1

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COSTS FOR LABOR AND MATERIA'.S YEA i

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COMPARISON OF COAL VERSUS NUCLEAR

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• ACTUAL AND PROJECTED .

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NUMBER OF PSNH CUSTOMERS e@o -

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$4@O- 396,200 g

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