ML16342A132

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Responds to Re Util 920709 Application to Recapture Period Spent Constructing Plant So as to Allow for Forty Years of Operation,As Permitted by Commission Regulation in 10CFR50.51
ML16342A132
Person / Time
Site: Diablo Canyon  Pacific Gas & Electric icon.png
Issue date: 06/10/1993
From: Murley T
Office of Nuclear Reactor Regulation
To: Krause A
TOWARD UTILITY RATE NORMALIZATION
References
NUDOCS 9306170130
Download: ML16342A132 (6)


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+>>*w" UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 3une 10, 1993 rc->~a/us Ms. Audrie Krause Executive Director Toward Utility Rate Normalization 625 Polk Street, Suite 403 San Francisco, California 94102

Dear Hs. Krause:

I am responding to your letter of Harch 19, 1993, to Chairman Selin concerning Pacific Gas and Electric Company's (PG&E's) July 9, 1992, application to recapture the period spent constructing the Diablo Canyon Nuclear Power Plant so as to allow for forty years of operation, as permitted by the Commission's regulations in Section 50.51 of Title 10 of the Code of Federal Re ulations.

The two major points addressed below are (1) your request that the staff of the U.S. Nuclear Regulatory Commission (NRC) prepare an environmental impact statement (EIS) and (2) your assertion that PG&E made statements in the, subject application that directly contradict its response to your petition filed with the California Public Utilities Commission (CPUC).

Regarding your request that the NRC staff prepare an EIS to consider the need for the generating capacity provided by the Diablo Canyon units, the Commission's regulations do not require the staff to consider the need for power.

In 1982, the NRC changed its rules to eliminate any consideration of need for power and alternative energy issues for purposes of meeting the National Environmental Policy Act of 1969 (NEPA) in operating license proceedings.

The Commission reasoned that questions concerning need for power and alternative energy sources were resolved in construction permit proceedings and that revisiting the issue at the operating license stage was not likely to result in tipping the NEPA cost benefit balance against issuance of the operating license.

These issues are matters for the CPUC.

Regarding your assertion that PG&E made contradictory statements, the NRC staff does not share your characterization of PG&E's response to the petition as contradicting its recent application to the NRC.

The NRC is a regulatory agency with responsibility for administering regulations under the Atomic Energy Act of 1954, that is, issues related to radiological health and safety, arising from the use of nuclear material.

With regard to the health and safety of the public, the NRC has formally recognized three consecutive times that Diablo Canyon has achieved a high level of safety performance over the past eighteen months.

The purpose of NRC inspection and enforcement activities is to monitor the licensee's performance and ensure the health and safety of the public.

The NRC has no role to play in rate-making, which is, as you have noted, within the jurisdiction, of the CPUC.

The quotes provided in your letter are not contradictory when the" distinction between operating safely and the ability to operate cost effectively is understood.

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Ms. Audrie Krause The actions the NRC has taken to date with regard to the Diablo Canyon units have been consistent with applicable statutes, that is, the Atomic Energy Act of 1954 and the National Environmental Policy Act of 1969, and the Commission's regulations implementing those statutes.

If you have further questions, please contact me.

Sincerely, omas E. Hurley, Director Orfice of Nuclear Reactor Regulation

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4 dune 10.

1993 Hs. Audrie Krause The actions the NRC has taken to date with regard to the Diablo Canyon units have been consistent with applicable statutes, that is, the Atomic Energy Act of 1954 and the National Environmental Policy Act of 1969, and the Commission's regulations implementing those statutes.

If you have further questions, please contact me.

Sincerely, Original signed by:

Games G. Partlow for Thomas E. Hurley, Director Office of Nuclear Reactor Regulation DISTRIBUTION:

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