99 



Senator Hatfield. In the matter of cutting down on your costs, 

 let me take up WPPSS II. They shut down for 4 days in February. 

 As I understand it, and correct my statistics if they are wrong, that 

 action cost $251 milHon in operational costs. 



You buy power at 3.4 cents per kilowatt hour, and you have a 

 gas market for sale at 2.7 cents per kilowatt hour. Have you 

 thought about terminating WPPSS II? 



Mr. Hardy. Yes, we have. Essentially, as part of the cost cuts 

 that we have identified in the generation budget, we have told the 

 supply system, given the figures you just cited, that they need to 

 get their costs, their operating costs of that plant down from their 

 current 34 mill level to 25 mills to 27 mills in the next 2 years. 

 If they cannot do that, then termination becomes 



Senator Hatfield. So they are on notice. 



Mr. Hardy. They are on notice. And I would observe further that 

 we can get more cost savings more quickly by that approach than 

 we can by a termination approach. 



Given our Trojan experience with Portland General, it takes you 

 3 or 4 years before actually starting to realize significant net cost 

 savings, because there are a lot of 



Senator Hatfield. A time line. 



Mr. Hardy [continuing!. Decommissioning and other costs, so my 

 desire, since it is clearly a near-term problem that we have, as well 

 as a long-term one, is to get as much savings as quickly as possible, 

 hence, challenge the supply system to get their costs down to 25 

 to 27 mills. 



I think they can do it. They have already lowered their costs and 

 increased their plant factors significantly in the last 18 months, 

 and we have reason for optimism. But it is a major challenge to 

 them and to us. 



Senator Hatfield. Are you satisfied with the safety record? 



Mr. Hardy. I am satisfied with the safety record and I am satis- 

 fied with their cost performance and their plant factor improve- 

 ment over the 18 months, since the new executive director took 

 over. 



Senator Hatfield. And they are still producing waste 



Mr. Hardy. Yes, sir. 



Senator Hatfield [continuingl. Coming back to Senator John- 

 ston's point a while ago. 



Mr. Hardy. Like every other nuclear plant in the country. 



Senator Hatfield. Thank you, Mr. Hardy. We appreciate your 

 testimony, and we will be continuing our discussions. 



ADDITIONAL COMMITTEE QUESTIONS 



We will submit the balance of the questions for response in the 

 record. 



[The following questions were not asked at the hearing, but were 

 submitted to the Department for response subsequent to the hear- 

 ing:] 



