ML022630480
| ML022630480 | |
| Person / Time | |
|---|---|
| Site: | Three Mile Island, Vermont Yankee File:NorthStar Vermont Yankee icon.png |
| Issue date: | 09/10/2002 |
| From: | Epstein E Three Mile Island Alert |
| To: | Colburn T Office of Nuclear Reactor Regulation |
| References | |
| Download: ML022630480 (9) | |
Text
~ARIA u THREE MILE ISLAND ALERT, INC.
N 315 Peffer St., Harrisburg, Penna. 17102 (717) 233-7897 September 10, 2002 Timothy Colburn, Three Mile Islanid Directorate U.S. Nuclear Regulatory Commission Mail Stop 8C2A Washington, D.C. 2055-0001
Dear Mr. Colburn:
With Exelon and British Energy's shares of AmerGen being on the market, I respectfully request that the Nuclear Regulatory Commission postpone and hold abeyance any decision on the relocation of thee Mile Island Emergency Operations facility from Susquehanna Township to Coatesville, Pennsylvania.
Any sale of TMI-i will likely be conditioned on unused decommissioning funds flowing back to the rate payer, i.e.,
Entergy/Vermont Yankee.
Pe
In addition, the purchase price of TMI-i will likely fetch Full Market Value, i.e., $350 - $6oo million, which will trigger a revaluation of the The Public Utility Realty Tax Assessment (PURTA) (i). After deregulation,, the utilities claimed that their large centralized generation stations assessed were disproportionate to the value of their facilities, i.e., nuclear as well as other sources of electrical generation. Nuclear plants were being sold at a fraction of their book value, e.g., TMI,$99 million /$512 million ("Annual Report Value") and the Companies relied on these figures to calculate their tax base. Nuclear plants now sell for the same value as traditional fossil stations, e.g., Fitzpatrick and Nine-Mile Point.
Respectfully submitted, Eric Jos h E stein Chairman 4100 Hillsdale Roati Harrisburg, PA 17112 (717)-541-11ol Phone (717)-541-5487 Fax eepstein@igc.apc.org Mr. Epstein is the Chairmanof Three Mile IslandAlert, Inc., a safe-energy organizationbased in Harrisburg,Pennsylvaniaandfounded in 1977.
1 The Public Utility Realty Tax Assessment (PURTA) is the tax assessment formula used prior to, and after, deregulation. The formula was predicated on a statewide distribution plan. The utilities influenced the legislature to "restructure" PURTA in the Deregulation Act (1998). The utilities claimed that local communities would increase their revenues, and allow utilities to decrease the amount of taxes paid by focusing on local school districts and municipalities.
2
-Generating-Station(s) 1985_StudyZI995_Study_ $-ncrease Limerick 1& 2 $272m/$986m $714m Peach Bottom 2& 3 $273m/$947m $674m Salem 1 & 2 $271 m/$701 m $430m Three Mile Island 1 (a) $60m(b)/$368m or $431m(c) $308-$371 (a) GPU reported that the cost to decommission TMI-2 more than doubled in 48 months. By 1997, the decommissioning estimate had risen 110% in four years to
$433 million. (1997,_GPU.AnnualReport.)
(b) TMI-1 total, projected decommissioning expense based on ENTOMB, (1986, GPULAnnuaLReport, p. 39)
(c) TLG's estimate as referenced in the 1998,AnnualReport, p. 59.
Reactor Core Size Lose Full Core Off load Capability limerick 1 764 2006 Limerick 2 764 2006 Oyster Creek 560 LOST Peach Bottom 2 764 2000 Peach Bottom 3 764 2001 Salem 1 183 2012 Salem 2 193 2018 Three Mile Island 177 NA Station Dry-CasKTechnology DeploymentDate _Contractor Limerick BD Summer 2010 TBD Oyster Creek NUHOMS 52B (a) July, 2010 None Peach Bottom Trans-Nuclear TN-68 June, 2000 Raytheon Salem None TBD None TMI (b) None TBD None (a) Holtec is the new vendor chosen to provide dry cask services at Oyster Creek.
(PECO's Response to Eric Epstein's Informal 1-8.)
(b) TMI-1 plans to increase spent fuel storage capacity by a three-stage re racking program 2002-2009.
PECO Energy's Response to Eric Epstein's Interrogatories, BEFORE THE PENNSYLVANIA PUBLIC UTILITY COMMISSION, Eric Joseph Epstein's Testimony APPLICATION OF PECO ENERGY COMPANY, PURSUANT TO CHAPTERS 11, 19,21,22 AND 28 OF THE PUBLIC UTILITY CODE, FOR APPROVAL OF (1) A PLAN OF CORPORATE RESTRUCTURING, INCLUDING THE CREATION OF A HOLDING COMPANY AND (2) THE MERGER OF THE NEWLY FORMED HOLDING COMPANY AND UNICOM CORPORATION, DATE: Docket No. A-110550 F014 7, FILED: APRIL 17, 2000.)
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In its application it noted it expects Barton to present in Dominion East Ohio territory.
to procure around 50 FirstEnergy Columbia pointed to what it calls market support generation accounts electricity title discrepancies in Nicole's application -
using some 205 milhon kwh/year and is failure to mention some $2.3 million it the "preferred bidder" of two separate in about 10 days owes the Ohio distributor and affiliated natural gas books of business from the LDCs in Pennsylvania and Kentucky Congress will pass an energy bill, Joe "arising but of the failure of Nicole same firm - "what used to be known to Barton, R-Tex, predicted, because of meet its delivery obligations and pay its as one of the largest retail energy the situation with Iraq. bills in the winter of 2000-2001."
companies." "It's going to be a broader bill than Although Nicole told the commission The gas purchase would put Accent at the 20,000 mmbtu/day level of most people expect. I don't think it's its subsidiary was no longer doing going to be a least-common business in Ohio it still has Ohio State deliveries to customers in Columbia Gas denominator bill," he said.
of Ohio, Dominion East Ohio and University as a client and only recently Cincinnati Gas & Electric territories. House energy bill conferees will see has been delivering adequate gas on the a "comprehensive electricity proposal" school's behalf, Columbia alleged.
The company will use its own direct for consideration along with the sales reps and agent/dealers to build its OSU was forced to pay 120% of Senate's electricity title within a week Columbia's standard tariff rate when business. and half, Barton added. Nicole has underdelivered.
ACI Capital, a private investment Barton met yesterday with Columbia is making accusations firm, is a major investor in Access. Republican members of the Energy &
Accent has applied for a retail without having the facts, Fulson said, Commerce Committee and plans to adding that the company plans to press electric license in New York too, meet conference committee Chairman planning to sell to C&Is in ConEd's on.
Billy Tauzin, R-La, "to walk him Ohio denied in June Nicole's footprint. through it to make sure he's application to be a competitive retail Another pioneer gas marketing comfortable with it."
firm - UGI Energy Services' electric supplier.
Gasmark, founded in 1985 - won its House and Senate conferees are to meet again Thursday.
license last week to sell gas in the Should FERC get Cincinnati Gas & Electric, Columbia Gas of Ohio and Dominion East Ohio OPUC sets back power to site choice programs. new power lines?
Gasmark of Wyomissing, Pa, is one Nicole plans of the largest gas marketers in the mid to market gas Atlantic region with more than 4,000 Superconductor maker C&I customers in the footprints of 18 likes technology LDCs in Delaware, Maryland, New *Nicole Energy Marketing - the minority much better Jersey, Virginia, Pennsylvania and owned firm that's hit licensing snags Washington, DC. recently in Michigan and Ohio (RT, 8/22)
Annual sales exceed 70 bcf this has met a new setback in Ohio where it Giving FERC power to override state year. applied for a gas marketer license. transmission siting inertia won't solve Neither company sought a license to The PUC suspended action on its the grid's problems, an American sell to residential customers. license for 90 days after Columbia Gas Superconductor official notes in of Ohio filed objections. comments on the Electricity Oversight Nicole was working on its answer to Board subcommittee report on grid British Energy weighs Columbia's filing last night and planned congestion (RT, 8/15) to deliver it to the PUC immediately, The issues "fundamentally are selling Amergen share Nicole President Freddie Fulson said in physical more than political," writes a telephone interview. John Howe, vice president, electric British Energy (BE) is considering Columbia Gas ejected the company industry affairs at the company whose selling its interest in Amergen Energy, - operating as Nicole Energy Services products include grid technology the company said yesterday, and has - in January last year from its gas solutions.
started talking with the UK government choice program when the marketer What's required is a "framework about a financial bail-out and long-term failed to deliver gas. that will actually attract grid investment" restructuring. Columbia told the PUC that Nicole and address environmental issues that "The board has concluded that we Energy Services owes it almost often "derail timely grid upgrades,"
had no alternative other than to seek $750,000 in unpaid tariffs - a lawsuit Howe noted.
government support," said Robin is pending in Franklin County (Ohio) Independent transmission providers Jeffrey, BE executive chairman. Court of Common Pleas - and that it (ITPs) are more likely to invest in a The government has confirmed that failed to meet obligations to its robust grid if, Howe suggests:
it is in talks with BE but failure to reach customers forcing them to find new "*Rate incentives are put in place; agreement with the Blair administration, suppliers "at the height of the gas price "* ITPs are encouraged to use new the company warned, could lead to spike during the worst possible time technologies with low environmental bankruptcy. winter of 2000-2001." impacts to upgrade the grid; BE continues to operate its UK and The Westerville, Ohio-based
- ITPs are required to solicit North American power stations, the marketer applied to provide gas to C&Is proposals to improve reliability and company said, "to supply electricity and beginning this month in Columbia capacity on existing lines, and comply with all safety and other temtory, next month to Cincinnati Gas - State and federal impediments to regulator requirements." & Electric customers and in November third-party investments in grid upgrades 1 2002 Gill LLC. Federal law prohibits making copies of this document by email forward. flix, photocopy or any means without wntten permission from Gltl LLC I
9/7/02 8:35 AM Untitled 9/7/02 8:35 AM ht tp:1tston e-m s~yah com/ne v-s~tm p-sty_&u=n m/2002090M canada-nm /can ada-ener gy-b ruce p- er-c aI Nuclear Watchdog Seeks Bruce Power Guarantee Fri Sep 6,2:50 PM Er By Scott Anderson TORONTO (Reuters) - Canada's nuclear watchdog called on Bruce Power on Friday to prove it has the finances to keep running its Ontario nuclear plant, after British Energy PLC, Bruce Power's largest stakeholder, said it was seeking a huge bailout from the British government.
British Energy holds an 82 percent stake in Bruce Power, which operates eight reactors at the Bruce nuclear plant in western Ontario on Lake Huron.
In a letter to Bruce Power in late August, the Canadian Nuclear Safety Commission called for a guarantee that the power plant could operate safely for a six-month period if troubled British Energy ceased operations.
CNSC, which licenses nuclear operations in Canada, requires this type of assurance every three months as part of its standard licensing agreement.
"As one of the conditions of its operating license, Bruce Power is required to have financial guarantees that if ever they should have to cease operations there would be financing available to them to cover their operations for six months to ensure a safe shut down," Michel Cleroux, a spokesman for the CNSC told Reuters.
"We have asked them to provide assurances that either British Energy can continue to meet this guarantee or else to explain how such financing would be available to them in the event that British Energy can't."
Britain's biggest electricity generator was locked in talks with the British government on Friday, after saying it faced liquidation and needed hundreds of millions of pounds to keep its reactors running. The company produces about 25 percent of Britain's electricity.
Bruce Power, a joint venture between British Energy and uranium miiner Cameco.C6rp., holds an 18-year lease on the Ontario facility, formerly part of the giant Ontario Hydrboprovincial power monopoly.
Cleroux said Bruce Power must g-uarantee its financial ability by Sept. 10, but refused to say what action the agency would take if it did not meet the conditions.
"I cannot speculate on future decisions that the commission would make, except that the safety of Canadians would be our foremost consideration," he said.
Steve Cannon, a media relations officer with Bruce Power, said the firm would meet the agency's deadline, but refused to comment on what the company's answer would be.
"At Bruce Power we are going through business as usual. We are continuing to deliver our business plan as usual and our primary focus is on safe and reliable 'generation of electricity to Ontario,"
Cannon said.
($l=$1.56 Canadian) stream://5/ Page 1 of 1
9/5/02 950 5:41 :1PPM TM! iiay be up for sale Article last updated:
Thursday, September 05, 2002 10:03 AM MST LD M Print this Article SE-Mail to a Friend f Link to this Article tTMI may be up for sale
'rExelon Nuclear Corp. could make
'millions in deal
- STAFF REPORT SHARRISBURG -- The operator of Three Mile
'Island says the company is considering selling its
_,share of the nuclear power plant and two other areactors.
-Exelon Nuclear Corp. spokesman Dave Simon
.said the company would consider a sale of
-AmerGen Energy, its partnership that owns TMI "and two plants in New Jersey and Illinois, only if Sthe price is right.
Analysts said TMI alone could sell for $340 million to $600 million. AmerGen bought TMI from GPU Inc. for $100 million in 1I)99.
"The plants were purchased at a very, very attractive price. It would be a very positive outcome for Exelon," said utility analyst Daniele Seitz of Salomon Smith Barney Inc. in New York.
'Buyers aware': But state Rep. Bruce Smith, whose district includes TMI, said the potential sale is a "major concern" because it could affect how the plant is operated and what safety precautions are taken.
The Dillsburg Republican is a longtime TMI critic who has advocated shutting the plant.
Smith said the threat to the nation's security after the Sept. 11 terrorist attacks, recent siren malfunctions, TMI's near-melt- down in 1979, and strong community activism should be considerations for any potential buyer. He said those concerns would probably make selling the plant more difficult.
Activist sees opportunity: One local nuclear activist said he plans to seize on any sale to push for the closure of the plant that sits on an island in the Susquehanna River off Goldsboro.
Eric Epstein, chairman of Three Mile Island Alert, said his group would consider intervening in the federal license transfer process and arguing that the plant is unsafe.
"What we can conclude a year after Sept. 11 is that it is still vulnerable from air, land and water," Epstein said.
New security: News of the possible sale came on the heels of an announcement yesterday by Exelon that it has met or exceeded new security standards mandated by the U.S. Nuclear Regulatory Commission after the Sept. 11 attacks.
Simon said the corporation spent $10 million on extra security for 17 reactors at 10 sites in three states, including those at TMI and at the Peach Bottom Atomic Power Station, a York County reactor owned wholly by Exelon.
The NRC ordered nuclear operators to adopt plans by Aug. 31 to protect the plants from vehicle bombs and attacks by water, as well http://63.147.65.1 6/S-ASP-Bin/ReformatSQLlndex.ASP?Article=ON&puid=2750&spuid=2750&id=
2 50 4 3 820&ro=O Page 1 of 2
TM,-may be up for sale 9/5/02 5:41 PM
- as attacks by insiders and other threats to security.
Simon said the modifications will cost Exelon about $1.2 million extra in operating and maintenance costs at each site.
'Any option': Epstein said that besides intervening in the license transfer, he would consider organizing an environmental trust fund to buy the plant and close it.
Epstein said if the plant continues to operate under new ownership, it would be bad news for those living nearby.
He said other nuclear facilities have sold for full value recently, and he believes the only way a company could make money after paying full value for TMI is to operate with a reduced staff and fewer upgrades.
Smith said he shares Epstein's concerns about a new owner cutting costs and firing workers. "You cannot prejudge, but companies expect to make a profit and cutting personnel would be one of their options," he said.
If TMI is sold, Smith said, he's hopeful the buyer would do a better job operating the plant.
"I won't say AmerGen's ownership has been a disaster, but it certainly hasn't been a honeymoon," he said.
A first: The April 1999 sale of TMI to AmerGen represented the first instance of foreign ownership of a U.S. nuclear power plant and possibly the first outright sale of a commercial reactor in the country.
AmerGen was formed in 1997 by Philadelphia-based PECO Energy Co. and British Energy of Edinburgh, Scotland, the largest electricity generator in the United Kingdom.
The sale, announced in 1998, did not include TMI's Unit 2, which was the site of the nation's worst commercial nuclear accident in 1979, when a portion of the reactor's core melted. GPU still owns the damaged unit.
Public comment: If Exelon makes a deal to sell the plant, the NRC and other federal agencies must approve the license transfer, said NRC spokeswoman Diane Screnci. The public could request a hearing on the sale.
She said the agency would evaluate whether new owners have the financial and technical capability to safely operate and, in time, close it.
The license transfer process usually takes between six months and a year, Screnci said.
The Associated Presscontributed to this report.
© 1999-2001 MediaNews Group, Inc. and York Newspapers, Inc.
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9/5/02 5:37 PM TMI may change hands yet again Iwo 4 _7--7.
LACASýTER NEW ERA TMI may change hands yet again L
Thursday, September 5 NewAdEra By Crable Staff Writer The Three Mile Island nuclear plant could get its fourth operator in three years.
Exelon Nuclear confirmed Wednesday it is in "the preliminary stages of exploring the possibility of a sale" of its 50 percent share of the plant's direct owner, AmerGen Energy. ,*J...h, ,
PECO Energy Company and British Energy formed AmerGen in 1997. Cun AmerGen purchased TMI from GPU Inc. in 1999 for $100 million and
- Ei p.i-y-sn became the plant's operator. PECO and Unicorn merged to form Exelon in Perso"als 2000. Exelon assumed PECO's half share of AmerGen and became its new a,,s ..
operator. S1,-ping MelMtge~s ... .. .
AmerGen also owns nuclear plants in Oyster Creek, NJ., and Clinton, Ill. ,
"We can't stress enough that it's very preliminary, and it's only a possibility.
It's too early to make any other judgment what this may or may not mean," "_ _____
said Exelon spokesman Ralph DeSantis.
But some are already speculating.
fldnýnflgged Eric Epstein, an Exelon shareholder and spokesman for the Three Mile Island B -,i
Alert anti-nuclear group, said today a change in ownership can only mean bad CIC.TIrIt .
things for safety at the plant and for the local economy.
'Three Mile Island will fetch market value. The only way new owners can V.ec['-sset make a profit is to further reduce labor costs and take shortcuts on G m '
maintenance and operation," Epstein said. M duk" -
Non Squi "I feel they're already operating on the margins of safety. They've cut 25 Oval~the Hedge li@."i*
1:' ."
percent of their staff since 1999." Qi %-i*i;;er°ge Reza1 t ife A*dvenituresg ",
According to Exelon's figures, TMI had 804 employees in 1998. Current Rds ,
employment includes 540 company workers and 100 to 150 contractors hired SciCh .
by Exelon at the site, DeSantis said this morning. ,Lylnckf"hx Epstein wondered how a possible sale would affect Exelon's plans to shift part of its emergency response team from the plant to a Coatesville facility; an expected $100 million replacement of new steam generator tubes; and an Anni e'nMailbox %
anticipated request to extend the life of TMI.
DeSantis said it was premature to address any of those issues.
... n-c/tmc.lold shtm Page 1 of 2 nttp:/ / www.ian~C3SLero inUl n amwI,*O*e~ ~ **
W V.41I may change hands yet again 9/5/02 5:37 PM Exelon CEO John W. Rowe said, "Exelon remains committed to being the nation's largest and best nuclear power plant operator." V, The Patriot-News of Harrisburg quotes industry analysts as predicting TMI could bring a sale price of $340 to $600 million.
The newspaper cjuotes analysts as saying that likely bidders are Dominion Virginia Power, Entergy of New Orleans and lorida Power & light.
Aj, Chicago-based Exelon is the nation's largest operator of nuclear plants. It also operates and is the majority owner of the Peach Bottom plant.
I rl ,I http://www.lancasteronline.com/newera-news/tmisaled.shtm - Page 2 of 2