Battalion
Page 4/The Battalion/Wednesday, July 2, 1986
FOR fl€NT
Classifieds Audit claims HL&P Warped
wasted $1 billion
on nuclear project
by Scott McCulltf _
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Bunkhouse in secluded quiet area
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tor 1 person. 2 miles
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Battalion Classified
845-2611
AUSTIN (AP) — The $5.5 billion
price tag for the South Texas Nu
clear Project includes more than $1
billion that was wasted because of
imprudent management by Houston
Lighting 8c Power Co., according to
an audit commissioned by state offi
cials.
The auditors said it might be
cheaper to give up on the plant than
complete it.
“Under certain sets of assump
tions, the cancellation of STNP
(South Texas Nuclear Project) could
be a lower cost alternative than com
pletion,” said the report prepared by
the auditing Firm of Lubow, McKay,
Stevens and Lewis.
An HL&P official said the report
is “preliminary and therefore incon
clusive.”
Edward Turner, HL&P group
vice president, disagreed with the re
sults of the state-commisioned audit.
“We do not believe the audit’s pre
liminary conclusions are correct,” he
said.
“It’s very simple'to say we should
have known then what we know to
day.”
The Public Utility Commission
commissioned the $2 million study
last year.
This was after four co-owners of
the nuclear plant under construction
near Bay City settled against Brown
& Root Inc. for $579 million.
Brown & Root, which had been
the designer and builder for the
plant, was fired from the project in
1981 by HL&P.
“We certainly don’t need an audit
to tell us there were problems dur
ing the time Brown & Root was on
thejob,” Turner said.
The report says that “unfortu
nately” bad management decisions
by HL&P allowed major mistakes to
“accumulate and compound over a
long period of time.”
The auditors, based in Overland
Park, Kan., said between $1.1 billion
and $1.3 billion was wasted as a re
sult of poor management by HL&P.
In conclusion, the auditors said
the four co-owners did not “fully ap
preciate the complexities and diffi
culties” of building a nuclear power
plant when the decision to build was
made in 1972.
Brown & Root was a bad choice
for architect-engineer because the
firm had never designed a nuclear
plant, according to the audit report.
Harsh Reality
by Gisrl
Doug Divine, PUC’s director of
utility evaluation, said, “The general
flavor of the report is that during
the early years of construction,
HL&P and Brown & Root didn’t
really know what they were doing,
and the cost to somebody was be
tween $1.1 billion and $1.3 billion.”
HL&P and Central Power &
Light, two of the partners, sought
PUC approval of the settlement.
“And it’s not going to fall on the
Texas ratepayers.
The cities of Austin and San An
tonio, the other two partners, are
not under PUC authority.
“It’s up to utility stockholders to
assure they have the type of manage
ment that can make proper deci
sions,” Divine said.
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Urban program finds A0 families a home
HOUSTON (AP) — The Ameri
can dream of owning a house came
true for 10 lucky families after their
names were selected from a list of
800 applicants trying to obtain re
possessed homes.
The drawing Monday was re
quired because of the large number
of people applying for the homes of
fered under the Urban Homestead
ing Program, city officials said.
“I’m elated,” said Claras Brown
after his name was picked. “I can’t
believe it.”
There is one small catch to own
ing the homes, but Brown considers
it a minor detail.
“The city will loan me the money
to pay for improvements on the
home, and I will pay that loan back,”
he said. “After I live in the house
Five years, it becomes mine.”
Families qualifying for the pro
gram must earn $18,000 to $27,500
a year, at least 30 percent of the
which must go for rent and utilities.
An applicant must not own any
other residential property and must
be a resident of Houston.
The city purchased the homes
with $200,000 in federal Commu
nity Development funding from the
U.S. Department of Housing and
Urban Development.
Each home purchased needs re
furbishing costing an estimated
$6,000 to $16,050 and the newom
ers must carry out the improvemen!
within 12 months.
The city will provide home iit
provement loans at 3 percent imei
est.
Brown’s house needs aboii:
$9,230 in improvements.
pi;
Clements denies any secret plan
for cuts to balance state budget
AUSTIN (AP) — There is no se
cret plan to fix the state’s budget,
and Bill Clements now says he never
said there was.
During the spring, while urging
Gov. Mark White to call a special ses
sion of the Legislature, Clements
said he had some ideas on where to
cut to balance the budget.
But he said he was not ready to re
veal details of his plan.
“I’m not going to get into a de
tailed road map and blueprint of
where and how you are going to cut
that budget,” he said.
“I think the voters understand my
modus operandi very, very well.
When I tell them that detailed road
map will be forthcoming prior to the
legislative session of 198/, they be
lieve me, they understand me and I
have credibility with them.”
Now, White says he will call a spe
cial session as soon as legislative lead
ers come up with a spending cut
plan. And the governor said it is
time for Clements “to lay your cards
on the table.”
But Clements press aide Reggie
Bashur said Tuesday Clements
never meant he had a specific plan.
What he has is a “blueprint of proce
dures and techniques he would em
ploy to curb spending in the bud
get,” Bashur said.
Saturday, at the state GOP con
vention at Dallas, Clements told in
terviewers, “There’s no secret plan.
Let’s lay that aside. That’s nonsense.”
Sierra Club, voters’ group
support air pollution fines
AUSTIN (AP) — The Sierra
Club and the League of Women
Voters on Tuesday backed the
Texas Air Control Board in its le
gal battle with a business group
that does not like the pollution
fines levied by the board.
The board can impose fines of
up to $10,000 a day for violations
of pollution laws or air control
permits. So far, 45 penalties add
ing up to more than $700,000
have been assessed.
League of Women Voters
spokeswoman Evelyn Bonavitaof [|
Austin said, “It fills the gap be
tween the issuance of a compli
ance order by an agency — which
heretofore has amounted onlyto
a slap on the wrist of an industry
not in compliance — and having
to refer the case to the attorney
general’s office for a possibly pro
tracted and costly court battle.”
HIGH BLOOD PRESSURE STUDY
Wanted: Patients with High
Pressure, either on or off
blood pressure medication
to participate in a High Blood
Pressure study. $100-$200
monitary incentive offered
for those chosen.
Call 776-0411
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