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The Board considered the possibility of completion of the WNP-1 Light

Water Power Reactor on the Hanford site and conversion to tritiun production

as a NPR. We treated this a bit separately from our assessment of the basic

technologies because it is a specific piece of hardware.

We recognized that

it was an important consideration because it offers the possibility of a

shorter schedule and lower initial costs than that of a new reactor of any

type. .

We were concerned, however, about uncertainties of the schedule

associated with the WNP-1 because of the need to develop the target techno

logy, the time needed to implement the legal processes to acquire the

reactor, and the uncertainty of obtaining public acceptance of conversion of

a commercial reactor to defense applications.

Risks, Benefits and Costs

The ERAB noted that a very important factor in assuring safe and

reliable production of nuclear materials is the naturity of the reactor and

target technology.

The HWR has an advantage in this respect.

The use of multiple smaller reactors of a given type offer advantages

of protection against loss of all capacity, flexibility of operation and

production, and increased potential for the use of passive safety features,

but at some added cost.

The ERAB believes that the use of multiple, smaller

reactors should be considered for any technology that is selected.

The use of multiple reactors with diverse technologies and located at

separate sites offers additional benefits of providing higher production

assurance, reduced uncertainty in the schedule, and less technical risk, but

again at higher cost.

A single unit NPR is the lowest initial cost option,

but carries the operational risk of unexpected loss of all capacity for an

extended period.

If a single-technology option were selected, it would be

prudent to develop target technologies for other reactor types to provide

for future contingencies.

The most significant effect on overall cost of the NPR would come from

the revenue gained by the sale of energy produced by the NPR.

The amount of

this revenue cannot be determined accurately at this time.

The sale of

steam to a utility for conversion to electricity is preferred to the genera.

tion of power by the NPR because defense material production would be better

separated from electric power production, the initial investment would be

reduced, and external institutional interactions with regulatory agencies

and utility customers would be reduced.

The revenue to be gained can only

be determined accurately by negotiations with electric utilities at the

potential sites.

I have rather briefly summarized some of the issues that I feel are

important to decisions on the NPR.

I would be happy to try to answer

questions on these or any other aspects of the ERAB NPR report.

Thank you.

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