ML060900533
| ML060900533 | |
| Person / Time | |
|---|---|
| Site: | Oconee, Mcguire, Catawba, McGuire  |
| Issue date: | 02/21/2006 |
| From: | Roberts P US Congress, US SEN (Senate) |
| To: | Combs T Office of Congressional Affairs |
| Shared Package | |
| ML061000548 | List: |
| References | |
| G20060354, LTR-06-0168 | |
| Download: ML060900533 (8) | |
Text
EDO Principal Correspondence Control FROM:
DUE: 04/20/06 EDO CONTROL: G20060354 DOC DT: 02/21/06 FINAL REPLY:
Senator Pat Roberts (Federal Energy Regulatory Commission/Office of External Affairs Referral)
TO:
Combs, OCA FOR SIGNATURE OF :
- GRN **
CRC NO: 06-0168 Reyes, EDO DESC:
ROUTING:
Safety and Operation of Nuclear Generating Facilities (Robert Tilford)
DATE: 03/31/06 Reyes Virgilio Kane Silber Dean Cyr/Burns Travers, RII Schmidt, OCA ASSIGNED TO:
CONTACT:
NMSS Strosnider SPECIAL INSTRUCTIONS OR REMARKS:
Prepare response to Robert Tilford with a cc: to Senator Pat Roberts.
The response with cc: must go out thru OCA.
"W I Cd a S Cq-O I tT L-R NS' scY-I
OFFICE OF THE SECRETARY CORRESPONDENCE CONTROL TICKET Date Printed: AMar30, 2006 17:28 PAPER NUMBER:
ACTION OFFICE:
- LTR-06-0168 EDO LOGGING DATE: 03/30/2006 AUTHOR:
AFFILIATION:
ADDRESSEE:
SUBJECT:
ACTION:
DISTRIBUTION:
LETTER DATE:
ACKNOWLEDGED SPECIAL HANDLING:
NOTES:
FILE LOCATION:
SEN Pat Roberts CONG Thomas Combs Concerns safety and operation of nuclear generating facilities Signature of EDO OCA to Ack 03/20/2006 No FERC Referral ADAMS DATE DUE:
04/20/2006
-DATE SIGNED: -
I EDO -- G20060354
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du auib lb; it!H Ft-h IU YL2141 41 134/Ie Ad hou February 3, 2006 Chairman Nils 1. Diaz U.S. Nuclear Regulatory Commission B88 First Street.N.E. Room 11Hil Washingtonj D.C. 20426
Dear Chairman Diaz,
I have in my possession certain documents pertaining to a proposed merger between two energycorporationswhich seem to indicate a problemrwithin the nuclear industry, which I think you should be made aware of. A problem which is not currently being addressed through federal regulation and oversight.
It concerns this issue of energy corporations, in particular to those who own and operate nuclear generating facilities in the United States, lacking adequate insurance to cover a whole range of risks. These risks include leaks, explosions, terrorist attacks, mechanical problems, inherent within the nuclear industry. Such risks could result in substantial loss of human life, significant damage to property and environmental pollutfon...etc. (see attached Confidential DUKE ENERGY document, pg 22, dated February 3, 2006).
Part of the problem is the limitations on the amounts and types of insurance commercially available to cover losses that might arise in connection with Nuclear operations, as well uncertainties with respect to the technical and financial aspects of decommissioning of nuclear generating plants.
it is my belief that we can address this problem, by otherwise requiring energy corporations who own and operate nuclear generating facilities to purchase more comprehensive insurance coverages.
Thank you for your assistance in this matter.
Sincr
/e bert Tilford 311 West Beech Ave Mc Cracken, Kansas 67556 cc: NRC E/E 'd 6EI9 0N 3)13JO SAMOB lVd 1,3S NWd:I 9001'91 *'VYO 1AR-20-2006 15:12 s3x P.04
MAP~ 20 2006 1g: 19 FR FERCTO 30457 TO 930141bb!D'el consummated and fof a period of time thereaftcr, and could cause customers, suppliers and others that deal with Duke Energy and Cinergy to seek to change existing business TClationships with Duke Energy and Cinergy. Employee retention may be particularly challenging during the pendency of the mergers, as employees may experience uncertainty about their future roles with the combined company. If, despite Duke Energys and Cinergy's retention efforts, key employees depart because of issues relating to the uncertainty and difficulty of integration or a desire not to remain with the combined company, the combined company's business could be seriously hanned. In addition, the merger agreement restricts Duke Energy and Cinergy, without the other party's consent.,-from tbaking certain acquisitions and taking other specified actions until the mergers occur or the merger agreement terminates. These restrictions may prevent Duke Energy and Cinergy from pursuing otherwise attractive business opportunities and mahrng other changes to their businesses that may arise prior to completion of the mergers or termination of the merger agreement.
Risks Relating to the Businesses of the Combined Company After Cobsurmxition of the mergers, the combined business of Duke Ene.gy Holding will be subject to many risks and uncertainties.
Gas traumission, di~stibution, gatherig, and processng actlvitidt involve nurnerour risks that may resuft. in accidexzs and other operating risks an! costs.
Therc,are inierent in our gas tranmission, distribution, gathering, and processing properties a variety of hazards and operating ris, such as leaks, ekplosiocs and Mechanical problems, shat could cause substantial financial losses. In addition, these riss could result in loss of human life, significant damage to property, environmental pollution, impaimnment of cur operations and substantial losses to us.
For our pipelines located ncar populated areas, including residential areas, comm=erciat business centers, industrial sites and other public gathering areas, the level of damages resulting from these risks is greater. We do not maintain insurance coverage against a!l of these risks and losses, and the insurancc covcrage we maintain may not fully covcr the damages caused by those risks and losies for which.we do -maintain insurance and therefore could have a material advers: effect on our financial position and results of operations.
Ourfranchised electric menues, earnings and results ar dependent on sstae legislanion and re~guation Mae offet ekecic generation, distribudon and rmated acriv~eits, which may limit our ability to recover costr.
Our franchised electric businesses are regulated on a cost-of-service/rate-of-retuhn basis subject to the starutei and regulatozy commission rules and proccdurcs of North Carolina, South Carolina, Kentucky, Indiana and Ohio. If our franchised electric earnings exceed the returns established by our stte rguatory commissionis, our retail electric rates may be subject to review by the commissions and possible reduction, which may decrease our future carings.
We may incur nubrantiial costs and liabilities due to our ownership and operwion of nucdear generating faciies.
Our ownership interest in and operation of three nuclear stations subject us to various risks including, among othcr things: the potential harmful effects on the envirorment and human health resulting from the operation of nuclear facilities and the storae, handling and disposal of radioactive materials; liniit'aions on tbe amounts and types of iosurance comnerciallyavalable to cover losses that miahr aise in connecton with nuclear operations; and uncertainties with respect to the technoloical and financial.aspectsof decomnissioning nuclcar plants at the cnd of their licensed lives.
Our ownership and operation of nuclear generation facilities requires us to meet licensing and safety-related requirements imposed by ibe NRC. In the event of non-coriplie-nce, the NRC may increase rigdlatory ovcrsight, impose fines, and/or shut down a unit, depcndL.ig upon its assessment of 22 FEB 27 2006 17:05 785 354 2444 PAGE.02 MAP-20-2006 15:12 P. es
MAP 20 2006 16:20 FR FERC TO 93014158571 P. e6/0?
February 5, 2006 Mr. Clay Sell DeputySecretary of Energy U.S. D6partfnent of Energy Forrestal Building, Room 78138 1000 Independence Avenue S.W.
t.
Washington, D.C., 20585-0800
Dear Deputy Secretary Sell,
This letter concerns the situation of the Department of Energy's (D.O.E.) failure to take possession of spent nuclear fuel rods from 3 commercial nuclear generating facilities,'oiwned and operated by DUKE ENERGY Corporation.
These facilities are: 1.) Catawba Nuclear Station, located in York,' South Carolina, 2)
Oconee Nuclear'Station, located in Seneca, South Carolina, and 3) Mc Guire Nuclear Station, located in 1Huntersvitle, North Carolina.'(See attached Confidential DUKE ENERGY-CORPORATION document, dated February 3, 2006).
As this is a situAtion which is deemed a hazard to the safety and operation of nuclear reactors in the United States, I wanted to make you aware of this situation, so the D.O.E. can act immediately to remedy this problem.
Thank you for your help and cooperation in this matter.
Sincerely 311 west Beech e
Mc Cracken, Kansas 67556 cc: U.S. Nuclear Regulatory Comrriissfon FEB 227 2236 17:06 785 394 2444 PFAGE. 03 r1F~R-20-20O 15 13 9B P...
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FEDERAL ENERGY REGULATORY COMMISSION WASHINGTON. DC 20426 OFFICE OF EXTERNAL AFFAIRS FAX TRANSMITTAL SHEET DATE: 3 Wm lo (o TO:
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ORGANIZATION:
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FAX NUMBER:
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VEIZFICATION PHONE NIJMBER:
30 I-4 1+- 1 -i '1 NUMBER OF PAGES INCLUDING COVER SHEET: '1
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Federal Energy Regulatory Commission Office of External Affairs FAX NUMBER:
(202) 208-2106 VERIFICATION PHONE NUMBER:
(202) 502-8004
SUBJECT:
MArP-20-2006 15:12 P.01
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