Qw>
f, Reactor Developmert
Mr. Davis reported that after a final check by
the Reactor Hazards Evaluation steff the Borax-4
reactor <:t the NRTS would be put into operation.
In addition, he said, the EBWR would become
critical the following day.
Mr. Davis then reviewed recent negotiations
with the North American Aviation Company regarding
the establishment of a contract for the Consumers’
reactor, The Company has indicated that they would
establish a maximum cost but this figure would be
approximately $10,600,000 higher than the figure
eriginally considered. Mr. Davis said he believed
that if the Commission wishes to proceed with the
construction of the reactor, a cost-plus-fixed-fee
or similar arrangement will have to be negotiated.
The Commissioners then discussed financial
difficulties which have arisen in connection with the
Rural Cooperative Power Association's plans for
construction of a power reactor at Elk River,
Minnesota, Mr. Davis said the Rural Electrification
Administration has indicated that it will not granta
loan to the Elk River group if there is any possibility
that the power produced by the proposed reactor
would cost more than power produced by a conventional plant. Mr. Strauss observed that if this
is actually the policy of REA, the REA will not
participate in the financing of the Eik River reactor,
He said he believed that the matter is of such
importance that confirmation of the general REA
policy on the financing of power reacters should
be obtained in writing from the REA. Mr. Davis
added that it appears that if the Elk River reactor
project is to be completed it will have to be
financed by the Government, He pointed out that
the Elk River group has no funds and is unable to
- 739 -