First-of-a-kind Engineering. First-of-a-kind engineering for advanced reactor designs will play a major role in the new nuclear industry. It provides the certainty required by the utility industry before committing to new orders. And it is critical to achieving industry goals of standardization. So, together with design certification and early site demonstration programs, completing first-of-a-kind engineering will provide the insurance policy that we need so that the next generation of reactors is available for orders in 1995. Cost and schedule assurance is a top priority -- and a prerequisite for new plant construction. Through first-of-a-kind engineering, all nonrecurring, first-time engineering will be completed up-front, opening the door to firm price and schedule offerings. Let me restate that in practical terms. When first-of-a-kind engineering is completed, Westinghouse and its partners could offer a turnkey proposal for the AP600 that provides specifics project costs, completion date, and performance. Achieving cost and schedule certainty is significant in a very real financial sense. By avoiding overruns and agreeing to a design in advance of construction, the probability of regulatory disallowances is greatly reduced. And that will result in considerable savings. In the 1980s, for example, Public Utility Commission disallowances for schedule delays and cost overruns at 23 nuclear units totaled $7.2 billion. That's about $320 million per unit. These figures dramatize the impact of cost and schedule uncertainties, and clearly illustrate the benefits of first-of-a-kind engineering. First-of-a-kind engineering will also facilitate the modular engineering approach needed for new, more cost-effective ... construction. Plants will be built through factory-produced modules that can be erected at the site in only 36 months a process that also substantially enhances our control over quality. A detailed design package supplied prior to the onset of construction will lead to many advantages with little or no risk: Firm quantities of construction materials Firm and advanced construction planning and scheduling Finally, first-of-a-kind engineering so completely defines plant details that only equipment procurement and site specific design work remains. Therefore, first-of-a-kind engineering -- coupled with design certification -- results in a standardized design. A comprehensive industry commitment to standardization is one of the key elements of the NPOC strategic plan. This commitment exists because industry has long recognized the economic advantages of standard designs. France provides the most obvious example. Although standardization had been on a much smaller scale here in the U.S. (with projects such as SNUPPS), the clear advantages of large-scale implementation have been recognized: Regulatory stability and elimination of unnecessary changes through early definition of requirements Resolution of issues in a timely and systematic manner Design optimization Simple and uniform designs that are easier to build and Focused and efficient application of technical and financial An expanded resource base that enhances support capabilities To ensure utilities are provided with a continuing, renewed nuclear option by the mid-1990s, first-of-a-kind engineering must be initiated in 1991. We fully support the DOE initiative for a cost-shared program on first-of-a-kind engineering. And we urge Congress to approve the $20 million budgeted for this program in fiscal year 1992. Summary and Conclusion We all know that we're getting closer to the point where decisions will have to be made about large central station power plants. In a balanced energy picture, some of those plants should be nuclear. The National Energy Strategy points to the need for expanded baseload electrical capacity at the outset of the next century. And, the DOE's fiscal year 1992 funding request places priority on those actions which would enable new plant orders to begin by 1995. We urge Congress to support the funding request for the ALWR program and the increased funding for design certification. Licensing reform is critical. We support the licensing reform initiatives contained in the National Energy Strategy, and urge Congress to support legislation that clarifies the NRC's authority to limit hearings after a plant has been built. Completion of first-of-a-kind engineering is also critical . It responds to the imperative of cost and schedule certainty and contributes significantly to the objectives of standardization. We welcome the DOE initiative on first-of-a-kind engineering and ask your support for the fiscal year 1992 budget request of $20 million. Taken together, the combination of first-of-a-kind engineering, The facts are plain ... significant progress is being made toward renewing the nuclear option. The National Energy Strategy sets a positive framework. DOE, EPRI and the industry are rapidly advancing the technology through continued strong support from Congress. And, NPOC has developed a solid plan whose goals can be achieved through cooperation and collective action. Westinghouse values its long association with the Department of Energy on programs of national importance. We view nuclear programs in this manner, and we welcome this opportunity to discuss their role, and our role, in supporting our nation's vital interests. Thank-you. ABB ASEA BROWN BOVERI March 22, 1991 The Honorable J. Bennett Johnston Chairman, Committee on Energy & Natural Resources U. S. Senate 364 Dirksen Senate Office Building Washington, DC 20510-6150 Dear Senator Johnston: Thank you for the opportunity to provide written testimony on S.341, the National Energy Security Act of 1991. I would like to commend you and Senator Wallop for including nuclear energy in a comprehensive program for addressing this nation's energy needs. Your invitation specifically requested that I provide my company's views on whether the provisions of Titles XII and XIII will encourage the development and commercialization of advanced reactors that may be safer, less costly, and easier to build and operate than the present generation of plants. As I have testified to Congress on a number of occasions, the major obstacles to restoring the nuclear option in this country are institutional – not technological in nature. Therefore, the near term activities of government and industry should emphasize developing solutions to those institutional obstacles. Development of new technologies tends to be much more costly and to require much greater time spans to complete. No single technology best meets all of the criteria proposed in S.341. We should pursue some degree of development for each of the proposed reactor technologies now being supported by DOE. For the near term, the Evolutionary Advanced Light Water Reactors, e.g., our System 80+ standard design, provide the proven track record that utilities need to resume nuclear plant construction. In the long term, the Modular High Temperature Gas Cooled Reactors and the Liquid Metal Reactors may provide the high thermal efficiencies and fuel efficiencies needed to keep nuclear energy an attractive source of electricity well into the twenty-first century. ABB Combustion Engineering Nuclear Power Shelby T. Brewer Combustion Engineering Inc. Windsor, Connecticut 06095-0500 Telephone (203) 285-5805 |