ML20204F617
| ML20204F617 | |
| Person / Time | |
|---|---|
| Site: | Harris  |
| Issue date: | 11/03/1981 |
| From: | Office of Nuclear Reactor Regulation |
| To: | |
| Shared Package | |
| ML20204F455 | List: |
| References | |
| FRN-64FR432, RULE-PRM-50-64 NUDOCS 9903250329 | |
| Download: ML20204F617 (4) | |
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1 B. Revise paragraph 1. F as follows:
F.
The Carolina Power & Light Company is technically qualified to design and construct the proposed facility; j
C. i All other references to " applicant" shall read " applicants" and shall include North Carolina Municipal Power Agency Number 3.
D.
Add the following at the end of paragraph 2:
Whereas the Carolina Power & Light Company and North Carolina Municipal Power Agency Number 3, as co-owners, will share in the ownership of the facility, the Carolina Power & Light Company shall retain exclusive responsibility for the design and construction of the facility. i 3.
This amendment is effective as of the date of issuance.
FOR THr. NUCLEAR REGULATORY COMMISSION
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p* Darrell G. Eisenhut, Director Division of Licensing Date of Issuance: November 3, 1981 l
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9903250329 990322 PDR PRM 50-64 PDR
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UN' ITED STATES I NUCLEAR REGULATORY COMMISSION
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- p, CAROLINA POWER AND LIGHT COMPANY i i
NORTH CAROLINA MUNICIPAL POWER AGENCY NUMBER 3 DOCKET NO. 50-402 '
SHEARON HARRIS NUCLEAR POWER PLANT, UNIT NO. 3 I AMEN 0 MENT TO CONSTRUCTION PERMIT Amendment No. 1 1 Construction Permit No. CPPR-160 l 1.
The Nuclear Regulatory Commission (the Connission) having found that:
A.
The application for amendment contained in a letter dated September 3, 1981, and supplemented by a second letter dated September 3,1981, i fcr the purpose of adding North Carolina Municipal Power Agency '
Number 3, as a co-owner of the Shearon Harris Nuclear Power Plant, Unit 3, complies with the standards and requirements of the Atomic Energy Act of 1954, as amended, and the Connission's rules and regulations set forth in 10 CFR Chapter I: .
B.
North Carolina Municipal Power Agency Number 3 is qualified to finance its proposed 16.5 percent undivided ownership interest in the facility.
C.
The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and D.
Issuance not of this previously amendment will not result in any environmental impacts considered.
2.
Accordingly, in ownershipConstruction Permit No. CPPR-160 is amended to reflect a change shares as follows:
A. Revise paragraph 1.B as follows:
B.
The Carolina Power & Light Company and North Carolina Municipal Power Agency Number 3 (the applicants) have described the proposed design of the Shearon Harris Nuclear Power Plant, Unit No. 3 (the facility), including, but not limittd to the principal architectural and engineering criteria for the design and have identified the major features or components incorporated therein for the protection of the health and safety of the public;
B. Revise paragraph 1. F as follows:
F.
The Carolina Power & Light Company is technically qualified to design and construct the proposed facility; ;
C.
All other references to " applicant" shall read " applicants" and shall I include North Carolina Municipal Power Agency Number 3.
. D. Add the following at the end of paragraph 2:
Whereas the Carolina Power & Light Company and North Carolina Municipal !
Power Agency Number 3, as co-owners, will share in the ownership of l the facility, the Carolina Power & Light Company shall retain exclusive '
responsibility for the design and construction of the facility.
3.
This amendment is effective as of the date of issuance.
FOR THE NUCLEAR REGULATORY COMMISSION s) g,.c TT : ..
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Darrell G. Eisenhut, Director Division of Licensing Date of Issuance: November 3, 1981 l
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+f UNITED STATES 8 o g NUCLEAR REGULATORY COMMISSION p WASHINGTON. D. C. 20556 l t{ s. . . . . j/ CAROLINA POWER AND LIGHT COMPANY NORTH CAROLINA MUNICIPAL POWER AGENCY NUMBER 3 DOCKET NO. 50-403 SHEARON HARRIS NUCLEAR POWER PLANT, UNIT NO. 4 AMENDMENT TO CONSTRUCTION PERMIT 1
, Amendment No. 1 Construction Permit No. CPPR-161 !
1.
The NucTear Regulatory Comission (the Commission) having found that: !
A.
The application for amendment contained in a letter dated September 3, 1981, and supplemented by a second letter dated September 3,1981, for the purpose of adding North Carolina Municipal Power Agency Number 3, as a co-owner of the Shearon Harris Nuclear Power Plant, Unit 4, complies with the standards and requirements of the Atomic l Energy Act of 1954, as amended, and the Commission's rules and regulations set forth in 10 CFR Chapter I: l 1
1 B.
North Carolina Municipal Power Agency Number 3 is qualified to finance its proposed 16.5 percent undivided ownership interest in the facility.
C.
The issuance of this amendment will not be inimical to the common defense and security or to the health and safety of the public; and D.
issuance of this amendment will not result in any environmental impacts not previously considered.
2.
Accordingly, in ownershipConstruction Permit No. CPPR-161 is amended to reflect a change shares as follows:
A. Revise paragraph 1.B as follows:
i B.
The Carolina Power & Light Company and North Carolina Municipal Power Agency Number 3 (the applicants) have described the proposed design of the thearon Harris Nuclear Power Plant, Unit No. 4 (the facility), including, but not limited to the principal architectural and engineering criteria for the design and have identified the major features or components incorporated therein for the protection of the health and safety of the public;
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I B.. Revise paragraph 1. F as follows: I l
F. The Carolina Power & Light _ Company is technically qualified to design and construct the proposed facility; C.. All other references to " applicant" shall read " applicants" and shall ;
include North Carolina Municipal Power Agency Number 3. l D. Add the following at the end of paragraph 2:
Whereas the Carolina Power & Light Company and North Carolina Municipal Power Agency Number 3, as co-owners, will share in the ownership of the facility, the Carolina Power & Light Company shall retain exclusive responsibility for the design and construction of the facility.
3.
This amendment is effective as of the date of issuance.
FOR THE NUCLEAR REGULATORY COMMISSION
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.i> Darrell G. Eisenhut,' Director Division of Licensing Date of Issuance: November 3, 1981
_ Safety Evaluation Report Shearon Harris Nuclear Power Plant, Units 1, 2, 3 and 4 INTRODUCTION By letter dated September 3,1981, Carolina Power & Light Company (CP&L) submitted a request for amendments to its construction permits (CPPR Nos.
158,159,160 and 161) for the Shearon Harris Nuclear Power Plant, Units 1, 2, 3 and 4, to add a co-owner and to secure approval of a transfer in ownership percentages to the proposed co-owner. This request involved a transfer from CP&L of a 16.5 percent undivided ownership share in Shearon Harris, Units 1, 2, 3 and 4, to North Carolina Municipal Power Agency No. .3_ (Power Agency). In support of the request, CP&L transmitted a number of exhibits by letter also dated September 3, 1981. The request for amendments states that CP&L will retain exclusive resporcibility for the design and construction of the facility.
The purpose of this Safety Evaluation is to present the results of the staff's analysis of the proposed addition of a co-owner to the Shearon Harris facility.
Since CP&L will retain exclusive responsibility for the desio" and construction of the facility, the only issue which required an evaluation ; the proposed co-owner's (Power Agency) financial qualifications to assume a 16.5 percent share of Shearon Harris.
ANALYSIS Financial Qualification Regulations and Analysis Assumptions The NRC regulations relating to the cetermination of an applicant's financial qualifications are in Section 50.33(f) and Appendix C to 10 CFR Part 50.
These regulations state that there must be reasonable assurance that an applicant can obtain the necessary funds to cover the estimated construction cost of a nuclear plant and its related fuel cycle costs. Ultimately, this means that an applicant must demonstrate a reasonable financing plan in light of relevant circumstances. This standard of reasonable assurance, however, must be viewed in light of the period of time from the purchase of ownership interest to the date of commercial operation. The expected commercial operation date for the Shearon Harris facility is estimated to be in 1985 for Unit 1,1988 for Unit 2, 1994 for Unit 3, and 1992 for Unit 4. Consequently, we must make certain basic assumptions in our financial analysis about future conditions. Our analysis of the proposed co-owner's financial qualifications requires that we validly assume that there will be rational regulatory policies with respect to the setting of rates and that viable capital markets will exist. The former assumption implies that rates will be set to at least cover the cost of service,-including the cost of capital necessary for the Power Agency to purchase the
- 1. 2,proposed 3 and 4. 16.5 percent undivided ownership interest in Shearon Harris, Units The latter assumption implies' that capital will be available to the Power Agency at some price. Given these fundamental assumptions, our evaluation is then' focused on the reasonableness of the proposed co-owner's financial plans,'in light of relevant circumstances, to participate in its
. proposed share of the: estimated construction costs of the facility.
The following analysis sunenarizes our review of the information submitted by the applicant and addresses the financial qualifications of the vower Agency to finance its proposed proportionate share of the costs associated with the design and construction of the Shearon Harris facility.
Cost Estimates and Amount of Ownership Interests Proposed for Transfer l
The most recent cost information for the proposed partial ownership '
transfers of Shearon Harris, Units 1, 2, 3 and 4, are stated in the financial information submitted by letters dated September 3,1981. These costs are summarized as follows on a basis for both amounts due at closing and total costs for purchase of ownership interests by .the Power Agency:
Cost of Purchase Total for Power Agency Shearon Harris Units Due at Closings Cost of Purchase
,(Dollars in Millions) for Power Agency (Dollars in Millions)
Unit 1 $236.9 Unit 2 $ 55.1 5 312.9 Unit 3 S 177.5
$ 12.3 $ 290.3 Unit 4 5 20.5 l 5 276.3 Total $324.8 $1,057.0 The timing of payments to meet the above costs for acquisition of the Power Agency's 16.5 percent proposed undivided ownership interest assumes that 33 percent of the closing will occur on January 1, 1982, 36 percent will occur on July 1,1982, and the final 31 percent will be consumated on December 1, 1982.
For subsequent constuction costs and progress payments, on the first day of each month after the first closing, CP&L will submit to the Power Agency a statement showing the amount due from the Power Agency for construction expenditures expected to be incurred in the following month.
The Power Agency's payment will be cue on the first of the month following the l month of each such statement. When the costs actually incurred in that month '
become known, CP&L will make an acjustment on the next monthly statement submitted to the Power Agency to correct any differences between the Power ,
Agency's progress payment and its share of the costs actually incurred.
Description of Business of Proposed Co-Owner The Power Agency is a public body corporate and politic and an instrumentality of the State of North Carolina, incorporated under North Carolina statutes 3' in December,1976. The Power Agency was created to plan, develop, construct, and operate generation and transmission facilities. The Power Agency has been 9 ranted all of the powers necessary or convenient to carry out such purposes.
In this respect, the Power Agency has proposed to enter into contracts wi m thirty-six political subdivision participants (Participants), under which the Power Agency is to be the sole and exclusive bulk power supplier for each such
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Participant in excess of any allotment of federal power from Southeastern Power Aaministration or of the output of any resource such political subdivision may develop and install pursuant to provistons of the Supplemental Power Sales Agreement in effect between the Power Agency and Participant. Each Participant is obligated to take or pay for its entitlement share of power from any owned project, such as the Shearon Harris Units.
The terms of said contracts are for the life of the project or so long as any of the Power Agency's bonds issued to finance the project are outstancing, but not exceecing 50 years.
Source of Funds to Power Agency Under the Power Coordination Agreement and the Operating and Fuel Agreement between the Power Agency and CP&L, the Power Agency covenants to set rates adequate to cover all its costs.
Power Agency in setting rates to its Participants.No The regulatory Participants,approvals as are requir municipalities of the State of North Carolina, have authority to establish their own retail rates for service to their customers. The State of North Carolina covenants and agrees that so long as any bonds of the Power Agency are outstanding and unpaid, the State will not limit or alter the rights of any Participant or of the Power agency to establish, maintain, revise, charge and collect electric rates to fulfill the terms of any agreement for the project.
The obligations of each Participant to make payments to the Power Agency under the Project Power Sales Agreement will be an expense of its Electric System, and the Participant will not be required to make payments to the Power Agency except from revenues of its Electric System. Each Participant will covenant in the Project Power Sales Agreement that it will fix and charge rates for electric service supplied from its Electric System sufficient to meet all of its obligations under the Project Power Sales Agreement and to pay any and all other amounts payable from such revenues, including costs of operation and of any general obligation bonds issueo by the Participant to finance its electric system.
4 The Power Agency's proposed 16.5 percent undivided ownership interest in the project will be financed through issuance of tax exempt revenue bonds.
CONCLUSION Based upon the above analysis, we conclude that T: North Carolina Municipal l Power Agency No. 3 has financing plans that provioe a reasonable assurance that funds can be obtained to finance its proposed undivided ownership interest in Shearon Harris, Units 1, 2, 3 and 4. As a result, we have determined that the Power Agency is financially construction of Shearon harris,to qualified the to participate extent of its 16.5 in the design percent and proposed innoividea ownership interest. This conclusion is based upon our determination
! that the Power Agency's plan to fund its proposed ownership interest in the facility from proceeds derived from the issuance of its revenue bonos constitutes a reasonable financing plan in light of relevant circumstances.
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On the basis of the above conclusion, we find that the issuance of the requested amendments transferring ownership percentages from CP&L to the Power Agency will not be inimical to the health and safety of the public.
find that the requested amendments do not involve a significant hazards We con-sideration because this action will not involve any significant increase in the )
1 probability or consequences of an accident, and this action will not involve any significant decrease in safety margin.
Date Issued: November 3, 1981 i
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