ML20098C771

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Motion for ASLB to Receive Into Evidence,As Applicant Exhibit 42,affidavit of Jt Bobo Re Applicant Financial Qualfications.Proposed Findings of Fact & Conclusions of Law & Certificate of Svc Encl
ML20098C771
Person / Time
Site: 05000000, Washington Public Power Supply System
Issue date: 08/05/1976
From: Reynolds N
CONNER, HADLOCK & KNOTTS, WASHINGTON PUBLIC POWER SUPPLY SYSTEM
To:
NRC COMMISSION (OCM)
Shared Package
ML20093C821 List: ... further results
References
CON-WPPSS-028, CON-WPPSS-28, FOIA-84-603 NUDOCS 8409270194
Download: ML20098C771 (8)
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UNITED STATES OF AMERICA  %

NUCLEAR REGULATORY COMMISSION p ogr;p 5~

AUG 61976 > 'f In the Matter of ) eg;.01 Yll,7 N

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WASHINGTON PUBLIC POWER ) fu #

SUPPLY sverM ) Docket No. 50-513 m

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(Nuclear Project No. 4) )

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APPLICANT'S MOTION FOR RECEIPT INTO EVIDENCE OF AFFIDAVITS AND DOCUMENTARY MATERIAL I. Background ,

In its Memorandum and Order dated July 29, 1976, the Atomic Safety and Licensing Board (" Board") suggested that the Washington Public Power Supply System ("WPPSS" or " Applicant" and NRC Regulatory Staff both submit pertinent evidence in the form of affidavits on the issue of the Applicant's financial qualifications to construct WPPSS Nuclear Project No. 4 ("WNP-4").

Such affidavits are to be filed by August 6, 1976. ,The Board noted that it will thercafter determine whether a hearing will be necessary or whether any Board questions can be handled by Board interrogatories and responses thereto by affidavit.

1/ By letter to the Board dated July 9, 1976, the Applicant pro-posed that the Board roccive pertinent evidence in the form of affidavits to supplement the record without hearing. By letter dated July 27, 1976, the Staff agreed to this proposal, and set forth a stipulated suggested schedule for the submission of affidavits (August 6) and for responses to Board interrogatories (if any) and the filing of proposed findings of fact (August 20).

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- II . Applicant's Evidence A. Financial'Oualifications ,

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~T he Applicant hereby moves that.the Board receive into evidence as Applicant's Exhibit 42'the " Affidavit of James T.

b Bobo Regarding Applicant's Financial Qualifications". The Bobo-affidavit discusses the Applicant's sources of construction funds.for WNP-4. As an interim measure to cover initial expendi-tures, advances or guarantees from purchasers or prospective pur-chasers of the output of WNP-4 (and WPPSS Nuclear Project No. 5

("WNP-5")) provide sources of construction funds. For per- g manent: financing, debt securities in the form of revenue bonds and notes are issued.

The first level of security for repayment of debt securi-ties is the revenues from operation of WNP-4 '(and WNP-5) . The second level of security is the existing contractual commitments between WPPSS and 88 public and cooperative utilities to purchase the electrical capability of WNP-4 and the WPPSS chare (90%) of WNP-5. The aggregate of the 88 participants' obligations equals 4 the total costs of acquiring, constructing and operating the facilities, including the amount required annually to pay the 2/. WNP-4 and the WPPSS share (90%) of WNP-5 will be financed as one system utilizing the project financing approach. Under this approach, the Applicant's Board of Directors adopts note and bond resolutions which serve as the indentures to the buyers of the securities.

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s interest and a portion of the principal on outstanding bonds.

Each of the 88 participants promises to pay a specified portion of these total costs. The participants are obligated to make payments whether or not the facilities are completed, operable or operating, and notwithstanding interruption or curtailment of output.

Prior to execution of the contractual commitments between WPPSS and the 88 participants, short-term revenue notes and bonds in the amounts of $17.5 million and $100 million, respec-

. tively, were issued for WNP-4 (and WNP-5) . The short-term revenue notes in the amount of $17.5 million have been retired. Since contractual commitments have been executed, financing of the facilities will be continued by the issuance of long' term revenue bonds in series from time to time during construction.

Upon receipt into evidence of the Bobo affidavit, and in view of the examination by the Board of the Applicant's witnesses at the evidentiary hearings held in November, 1975 (Tr. 796-800, 841744, 849), we submit that the record contains substantial evidence to support favorable findings of fact and conclusions of law on the financial qualifications issue.

B. Need For Power In its Partial Initial Decision on environmental and site suit-3/

ability issues which was issued on July 30, 1976,- the Board made 3/ LBP-75-41, NRCI-75/7 131 (July 30,1975) .

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certain finding! relating to the need for power issue. In con-clusion the Board found that'"there.will be a need for the base-load energy which can be provided from WNP-1 and WNP-4 in the e

time frame in which those plants are anticipated to operate."

NRCI-75/7 at p. 142. Nevertheless, in view of the delays en-countered in the issuance of the construction permit for WNP-4,~4/

it appears appropriate out of an abundance of caution to update the record on the need for power issue. E.g., Matter of Potomac Electric Power Company (Douglas Point Nuc. lear Generating Station, Units 1 and 2) ALAB-277, NRCI-75/6 539 (June 18, 1975); Matter of Duke Power Company (William B. McGuire Nuclear Station, Units a 1 and 2) ALAB-143, RAI-73-9 623 (September 6, 1973).

Accordingly, the Applicant hereby moves that the Board re-ceive into evidence as Applicant's Exhibit 43 the " Affidavit of Robert B. Gallup Regarding Need For Power Update,"-5/ and as 1

Applicant's Exhibit 44 the 1976 West Group Forecast ("1976 Fore-cast"), which was issued subsequent to the evidentiary hearing on

environmental and site suitability issues (May 13-15, 1975).-6/

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4/ The delays encountered were unrelated to the need for power Rather, the Applicant requested that the Board defer issue.

consideration of the Applicant's financial qualifications to construct WNP-4 pending completion of secondary environmentr.1 impact statements pursuant to Washington State law. See NRCI-75/12 922, 927-28 (December 22, 1976).

5/ Mr. Gallup testified on the need for power issue at the evidentiary hearings held on May 13-15, 1975 (Tr. following
p. 164; Tr. 155-58, 160-64, 174-76, 247-48, 263-344, 346-76).

6/ The 1976 Forecast was issued on March 1, 1976. The 1975 West Group Forecast ("1975 Forecast") was roccived into evidence as Applicant's Exhibit 4. Soo NRCI-75/7 at p. 141.

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The Gallup affidavit summarizes the forecasts of loads and resources for the Pacific Northwest region contained in the 1976 Forecast. The 1976 Forecast indicates that there has been a decrease in energy loads forecasted for the period 1976-1987 which has been more than offset by a decrease in energy resources estimated to be available in that same period. The decrease in estimated resources is due to slips in schedule of certain nuclear and coal-fired facilities which were credited as resources for a given year in the t

1975 Forecast. The slips in schedule were due to several factors, including regulatory delays, financing difficulties, load reductions and construction delays. The changes in energy lead estimates and resource schedules have resulted in a shift from surpluses to deficits for each year during 1983-1986, the period during which the 1976 Forecast takes initial credit for energy from WNP-4.

Thus, the 1976 Forecast more than confirms the Board's finding as to the need for WNP-4 in the time frame projected.

Relative to the forecasts contained in the 1975 Forecast and to the other evidence of record when the Board rendered its findings on the need for power issue, the need for WNP-4 is even more urgent.

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s III. Proposed-Findings of Fact and Conclusions of Law Based upon the~ stipulated suggested schedule set f' orth in the Staff's letter to the Board dated July 27, 1976 (supra, n.1), responses to Board questions (if any) and proposed. findings of fact and conclusions of law must be filed by August'20, 1976. The Applicant and the Staff both believe it appropriate that this matter be considered 7/

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9 on affidavits without hearing. In tlye event that the Board agrees with this approach, we request that the Board so inform the parties and transmit Board questions (if any) by August 12, 1976 to facilitate the filing of responses to any Board questions and proposed findings of fact'and con-clusions of law by both parties by August 20, 1976.

Respectfully submitted, CONNER & KN TS

, Nicholah 3. eynolds Counsel for he Applicant Dated: August 5, 1976 i

I 7/ Sco Applicant's and Staff's letters to the Board dated July 9, 1976, and July 27,'197G, respectively.

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UNITED STATES OF. AMERICA s- NUCLEAR. REGULATORY COMMISSION In the Matter of ,

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WASHINGTON PUBLIC. POWER .

) Docket No. 50-513

. SUPPLY SYSTEM )

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(Nuclear Project -No. 4) )

i CERTIFICATE OF SERVICE e

I hereby certify that copies of " Applicant's Motion For 4

Receipt Into Evidence Of Affidavits And Documentary

- Material", dated August 5, 1976, in the captioned matter, have been served upon the following by deposit in the United States mail this 5th day of August, 1976:

1 i Richard S.'Salzman,'Esq. Dr. Marvin M. Mann #

= Chairman, Atomic Safety and Atomic Safety and Licensing Licensing Appeal Board Board Panel

, U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission Washington, D.C. 20555 Washington, D.C. 20555 1

Dr. Lawrence R. Quarles Dr. Donald P. deSylva l Atomic Safety and Licensing Associate Professor of Appeal Board Marine Science

! U.S. Nuclear Regulatory Rosenstiel School of Marine i Commission and Atmospheric Science i Washington,~D.C. 20555 University of Miami

< Miami, Florida 33149 l John B. Farmakides, Esq.

I Atomic Safety and Licensing Chairman, Atomic Safety j' Appeal Board and Licensing Board Panel

U.S. Nuclear Regulatory U.S. Nuclear Regulatory Commission Commission

, Washington, D.C. 20555 Washington, D.C. 20555

' Robert M. Lazo, Esq., Chairman Edward G. Ketchen, Esq.

Atomic Safety and Licensing Counsel for NRC Regulatory

' Board Staff U.S. Nuclear Regulatory Office of the Executive  !

Commission Legal Director l I

, Washington, D.C. 20555 U.S. Nuclear Regulatory Commission '

i Washington, D.C. 20555 l l

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r Mr. Chase R. Stephens pocketing and Service Section Office of the Secretary U.S. Nuclear Regulatory Commission Washington, D.C. 20555 Richard O. Quigley, Esq. ,

Washington Public Power Supply System P. O. Box 968 Richland, Washington 99352 fg Nicho ti S{0TTSjReynolds CONNER Kh Counsel for the Applicant k

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