I cannot see a utility president this year risking his shareholders' equity by order a nuclear plant under today's uncertain regulatory climate. Valkorae-1, thirty-one months after it went commercial, has already paid for itself to give you some feel. The differential in the oil costs and the fuel costs has already recovered for Korea the value of the cost of the plant that they paid us to build the plant. While that happens of course GPU stands on the brink of bankruptcy helpless to clean up Three Mile Island-2 or put Three Mile Island-1 back on line. While we built Ovi and just brought it on line in Japan, sixty-one months after the signing of the contract with Kansi Electric Salen-2, a sister qnit adjacent to an already licensed plant, is unable to be licensed. A magnificent shipyard stands idle in Jacksonville, Florida, with no license to build a floating nuclear plants more than eight years after application for such a license. Now, nuclear business represents less than nine percent of Westinghouse's sales bill. particularly important to our company. But in my judgment it is vitally important to the industrial base of America. What is going to happen in the nuclear business in the United States is first we are going to close up most of our manufacturing capacity. As you have already noticed, we are going to close up our very large Tampa facility. Westinghouse at least is going to keep its engineering expertise perhaps gradually dispersing it outside the United States. One of the great tragedies of our inability to quickly reach decisions in the United States is that we are going to lose our great leadership that we have had in the safety arena. If we look at the past we have sold plants to U. S. safety standards. Those standands have been recognized as viable safety standards and as the safest and the most cost competitive in the world. Because of our inability to arrive at decisions in the United States each country is now embarking on its own The tragedy of that is that instead of having worldvide that recognize the leadership of the United States ve are going to have a proliferation of standards and, in my judgment, a weakening of safety standards around the world. So we are going to have less safe plants around the world than we were going to have in the past. COMMISSIONER GILINSKI: Could I just interrupt you and ask you what kind of standards you are talking about? MR. HURLBERT: Total regulations. Total regs. Each of these countries are going to develop their own set of regs. As you know, the German regs. are not any different but their concept is different. COMMISSIONER GILINSKI: But we certainly have a more, at least at this point I think, a more complete set of standards than anyone else. I was wondering what it is about them that causes others to go off on their own. MR. HURLBERT: Let me answer first your question of why the rest of the world is moving very rapidly in nuclear. Nuclear is only the cheapest if you build it rapidly. The cost of nuclear isn't in the fuel, the cost of the uranium and the fuel fabrication. It isn't even in the enrichment. The cost is the capital cost. The reason that these are economic plants overseas are that they can be built rapidly. Most plants in the world are built where effective we get a construction permit and an operating license to the existing set of regulations. We build the plant to a set of standard regulations. In the past it has been primarily, U. S. standard regulations as of the date of the plant order. That reduces immeasurably the cost of the plant and in my judgment substantially improves the safety because there isn't the rip and tear that we have with changes in regulations on nearly a daily basis. Now, I would just like to add a little bit on what is going on in the world. In the next 18 months we will be competing for business for two in Korea, two in Italy, two in Taiwan, four in France, that will be through our licensee, two in Spain, four to six in Japan, two in Belgium, two in China, tvo to twenty in Eexico, tvo in South 2000. COMMISSIONER BRADFORD: Two to twenty in Mexico? MR. HURLBERT: Two to twenty in Mexico. COMMISSIONER BRADFORD: Twenty by when? ER. HURLBERT: They want them onstream by the Year. Portillo would like to award two before his speech in September and it will be like England, an order for one or two and an option for 18. But they are going to move forward just because of economics. Now, we are going to build a lot more in the United States, too, because the need is there. America has been sleep industrially. We are going to have to reindustrialize this country and we will. We have awakened. But it is not going to happen and they are not going to build nuclear plants until we can get the uncertainty out of the licensing process. Fe need expeditious licensing. In the short term what is going to happen is how fast we are going to license units that are Rov under construction, including Diablo-1 and Three Mile Island-1. It is going to depend on how soon we start granting construction permits. It is going to be determined by whether we expediously handle the floating license because it is a forerunner of what we really need which is a generic plant license within an envelope and site banking independent and a construction permit and an operating license essentially at the same time. Once a plant is licensed, once you obtain a license on that particular plant no reg. changes apply unless there is a significant safety issue. With those things we will sell one hell of a lot of nuclear power plants. It is going to happen and it is just a question of how long. We have an Administration and we have a Congress that will pass the laws that it takes to make this happen where you do not have the statutory authority to do it. I an hopeful that your leadership under the climate that ve have now will let that happen so that we can get on with the job and have the same standard of living for our children that we have ourselves. Thank you very much. COMMISSIONER BRADFORD: When you say a |