ML20126K830

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Responds to ASLB 810428 Order Re Util Future Plans for Facility.Const Was Deferred Until 1990 Since Work Would Not Be Completed in Time to Meet Expected Needs
ML20126K830
Person / Time
Site: 05000514, 05000515
Issue date: 05/14/1981
From: Hastings W
PORTLAND GENERAL ELECTRIC CO.
To:
Atomic Safety and Licensing Board Panel
Shared Package
ML20126K834 List:
References
ISSUANCES-CP, NUDOCS 8105220068
Download: ML20126K830 (3)


Text

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MNS UNITED STATES OF AMERICA O V; p.s. g,T UCLEAR REGULATORY COMMISSION & .,,)

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OMIC' SAFETY AND LICENSING BOARD - D' ~

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Before Administrative Judges:

Slizabeth S. Bowers, Chairman f 0%M ~

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Dr. Walter H. Jorcian L _,  ?

Dr. William E. Martin so ,

In the Matter of )

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PORTLAND GENERAL ELECTRIC COMPANY,) Docket Nos. 50-514 CP ET AL. ) 50-515 CP  !

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(Pebble' Springs Nuclear Plant, )

Units 1 and 2) ) / l RESPONSE TO BOARD'S ORDER OF APRIL 28, 1981 Applicants' Respond to the Board's Order of April 28, 1981

. inquiring as to PGE's future plan for Pebble Springs as follows:

In February of 1980 Applicants advised the Board of the de-r ferral of the Pebble Springs Project to the 1990's. For the Board's convenience, a copy of that communication is attached.

As the Board will. note from that letter the Project was deferred to that time period because it could not be constructed in time to meet then expected needs -- It was not to be abandoned.

On March 12, 1981 Merrill Lynch Pierce Fenner & Smith, Inc. -

(Merrill Lynch) released through its Securities Research Division a report (the Release) on electric utilities who own or are building nuclear power plants. Portions of the Release deal with Portland General Electric Company. They are attached.

THIS DOCUMENT CONTAINS .

POOR QUAUTY PAGES 810s ee n #(F g

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The Release was apparently picked up and then paraphrased by Nucleonics Week in its issue of April 2, 1981 and in this form came to the Board's attention.

The Board will note the Release was apparently written by a Doria A. Kelley associated with the New York City office of Merrill Lynch. In a statement to the press on May 8, 1981, a spokesperson for Merrill Lynch attributed statements in the Release to "the firm's researchers" and to public information, including " rumors". Please see the clipping attached.

In comparing the Release with the Nucleonics article, it is apparent the writer of the article has exercised literary license on the Release. For example, the Release suggests PGE "could" benefit from cancelling Pebble Springs and Skagit if certain conditions present themselves. The writer of the Nucleonics article has turned this into the statement " Portland General Electric would benefit from cancellation of Pebble Springs 1 and 2, -" .

Irrespective, the conditions for cancellation outlined by Merrill Lynch do not fully exist in PGE's case. PGE has an investment in Pebble Springs &pproaching $150 million. It does not propose to write this off without compensation.

Secondly, it can not act unilaterally. Others own substantial interests in Pebble Springs. While it is true PGE has "some wait and see room - " due to the completion of its Boardman Plant, the Regional Bill, and construction progress on the Colstrip 3 and 4 and WPPSS No. 3 units, this does not mean the Pebble Springs Project is to be abandoned.

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l PGE's position on Pebble Springs remains as stated in the letter of its President, Mr. Lindblad (then Vice-President), '

to the NRC of September 30, 1980 and as reiterated in the attached press releases. Although a copy of Mr. Lindblad's letter was previously made available to the Board, an additional copy is attached for the Board's convenience.

We trust the foregoing is suitable for the Board's purposes.

F We would be happy to answer any further inquires the Board may ,

have.

Respectfully submitted, M

Warren HastidQs, of Attorney for Applicants Dated at Portland, Oregon this /hb day of May, 1981.

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