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Question 1 : 



Washington Public Power SuddIy System fWPPSS^ 



An estimate of the savings per year from FY 1994 to FY 1998 if the 

 "mothballing" of WNP 1 and 3 was terminated. 



Answer: The current cost to preserve the two projects is approximately $10.5 



million per year, of which about half is funded from BPA revenues (which 

 is included in the current rate case) and half from the WNP-1 construction 

 fund. The savings from discontinuing preservation may be offset by other 

 costs. The most significant is site restoration. BPA and the WPPSS are 

 working to resolve a number of legal and financial issues in order to 

 maximize the potential savings from a termination decision. These issues 

 must be resolved prior to making a termination decision. 



Question 2; An estimate of the revenues that would result if WNP 1 and 3 fuel was sold 



following the termination of mothballing. 



Answer: The current market value of the WNP-1 and WNP-3 fuel and enrichment is 



approximately $100 million. Depending on market conditions and the 

 approach used to sell the fuel, that amount could be recovered over the next 

 several years following a termination decision. It should be noted that short 

 term disposition of these quantities could depress the market price for the 

 commodity and reduce the net gain from the sale. There are unresolved legal 

 issues that could restrict the potential uses of revenues from fuel and other 

 asset salvage sales. Resolution will likely require a declaratory judgment in 

 state or federal court. 



Question 3 : Please provide an estimate of the payment the BPA will make to WPPSS for 



the operating costs of WNP-2 in FY 1994. How do WNP-2 operating costs 

 compare to the nuclear industry average? Does BPA have a mechanism for 

 auditing WNP-2 operating expenses? Has BPA ever reflised to pay any WNP- 



