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This document is a committee compendium prepared by the committee staff and is not a committee report. It is intended as a basis for further analysis and consideration by the members of the Joint Committee and the Congress.

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CONTENTS

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1. Chairman Holifield's opening statement at first Joint Committee

hearing on the subject proposal, July 10, 1962_-

2. Atomic Energy Commission statement at July 10, 1962, hearing on

the subject proposal.

3. Washington Public Power Supply System (WPPSS) statement at

July 11, 1962, hearing on the subject proposal ---

4. Summary of operating and construction contract (draft) No. AT(45–1)-

1355 between Atomic Energy Commission and Washington Public

Power Supply System.--

5. Operating and construction contract (draft) No. AT(45–1)–1355

between Atomic Energy Commission and Washington Public

Power Supply System.-

6. Summary of exchange agreement (draft No. 8), contract No. 14-03,

June 19, 1962, among Bonneville Power Administration (BPA),

WPPSS, and the WPPSS public utility districts.

7. Exchange agreement (draft No. 8), contract No. 14-03, June 19, 1962,

among BPA, WPPSS, and the WPPSS public utility districts

8. Congressman Van Zandt's press release, July 3, 1962-

9. GAV letter to AEC dated July 6, 1962 (response to AEC request for

opinion)---

10. AEC letter to GAO dated June 4, 1962 (request for opinion concerning

AEC legal authority).

11. GAO letter to Chairman Holifield dated July 6, 1962-

12. Chairman Holifield's letter dated July 3, 1962, to the Comptroller

General.

13. Chairman Holifield's letter dated June 29, 1962, to the Comptroller

General..

14. Comptroller General's letter dated July 6, 1962, to Congressman John

Taber stating opinion concerning AEC authority

---

15. Congressman John Taber's letter dated June 13, 1962, to Comptroller

General requesting opinion on AEC and BPA authority relative to

proposed project--

16. Congressman John Taber's letter dated May 23, 1962, to Comptroller

General requesting opinion on AEC and BPA authority relative to

proposed project.

17. AEC Acting General Counsel opinion, May 31, 1962
18. BPA regional solicitor memorandum to BPA Administrator, April 10,

1962 (legal opinion) -

19. Congressman Ben F. Jensen's comments on proposed NPR electric

plant, April 18, 1962, and AEC response May 4, 1962---

20. Bonneville Power Administration statement on Hanford atomic power-

plant before House Appropriations Committee on April 16, 1962--

21. Summary by WPPSS and BPA of pertinent information on NPR elec-

tric plant proposal presented to House Appropriations Committee

during hearings on April 16, 1962

22. AEC letter to JCAE dated April 6, 1962, transmitting AEC analysis

of, and comments on, WPPŠS proposal .

23. WPPSS letter to AEC dated February 2, 1962-

24. AEC letter to JCAE dated January 24 forwarding WPPSS proposal

dated November 28, 1961, and February 2, 1962, amendment

submitted by WPPSS.

25. AEC letter to JCAE dated July 11, 1962, concerning preference

provisions

26. BPA letter to JCAE dated July 12, 1962, concerning pullback pro-

visions.

UTILITY PROPOSAL FOR POWERPLANT ADDITION TO HAN

FORD NEW PRODUCTION REACTOR

INTRODUCTION

This document contains the principal documents concerning a proposal submitted by the Washington Public Power Supply System to the Atomic Energy Commission and the Bonneville Power Administration for the construction and operation of an electric generating plant at Hanford, Wash., which would use the byproduct steam generated in the Commission's new production reactor (NPR) now under construction.

The NPR was authorized by the Congress in 1958 as Project 59-a-5 of Public Law 85-590,"Production reactor facility for special nuclear materials, convertible type, Hanford, Wash., $145 million.” The purpose of the reactor is to produce plutonium for the nuclear weapons program. The convertible type of reactor authorized for this purpose is a reactor with certain design features which would permit the utilization of the heat (steam) generated in the plutonium production process for the production of byproduct electrical energy. The authorization did not include funds for the construction of the necessary plant and equipment additions required for the generation of electric energᎩ . .

In 1961, the administration proposed the construction of the electric generating plant at the NPR. This proposal would have required the authorization of $95 million of Federal funds for the construction of the facilities and in addition, would have required the Atomic Energy Commission to operate the electric plant. The Congress refused to authorize the expenditure of Federal funds for this purpose.

Recently, a group of public utility districts in the State of Washington, comprising the Washington Public Power Supply System, proposed to build and operate the facilities at their own expense and without any Federal expenditures. Proposed contractual arrangements have been negotiated among the participating parties which include the Washington Public Power Supply System, its participating utilities, the Atomic Energy Commission and the Bonneville Power Administration. The contracts have not been signed as yet.

Under these contracts, WPPSS would construct and operate the electric generating facilities at its own expense. AEC would sell the otherwise wasted NPR steam to WPPSS at a price, approved by the Federal Power Commission which could result in the receipt by the Commission of from $31 million to $125 million over a 10- to 24-year dual purpose period.

WÞPŠS would turn over the entire output of the NPR generating facilities to the Bonneville Power Administration under appropriate power exchange agreements.

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