ML17277B200
| ML17277B200 | |
| Person / Time | |
|---|---|
| Site: | Columbia  |
| Issue date: | 12/07/1983 |
| From: | Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | Judith Weaver HOUSE OF REP., INTERIOR & INSULAR AFFAIRS |
| Shared Package | |
| ML17277B201 | List: |
| References | |
| NUDOCS 8312230151 | |
| Download: ML17277B200 (5) | |
Text
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+p*~4 UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D. C. 20555 DEC 0 V 1983 The Honorable Jim Weaver, Chairman Subcommittee on Mining, Forest Management and Bonneville Power Administration Committee on Interior and Insular Affairs United State House of Representatives Washington, D.C.
20515
Dear Mr. Chairman:
This is in response to your letter to Chairman Palladino dated October 11, 1983, in which you asked the status of the review of the current financial situation of the Washington, Public Power Supply System (WPPSS) on licensing of WPPSS Nuclear Project No.
2 (WNP-2).
Although press accounts may have indicated that there is currently a formal NRC review of the impact of WPPSS financial problems on the licensing of WNP-2, such is not.the case.
However, for reasons identified. in the following paragraphs, we expect that the WPPSS financial difficulties will not have a significant negative impact on WNP-2.
The NRC staff, in March 1982, completed and published a financial review of WNP-2 as part of the NRC Safety Evaluation Report for an operating license.
The s'taff concluded that WPPSS had demonstrated reasonable assurance that it could obtain the funds.necessary to cover both operating and decommissioning costs of the plant.
Essentially, there are three levels of assurance that WNP-2 operating amd eventual decommissioning costs will be fully funded.
The first level of assurance is provided by the revenues that will be collected from ratepayers who use electricity generated by the plant.
The second level
'f assurance is evidenced by contracts between
- WPPSS, the utility participants, and Bonneville Power Administration which provide that each participating utility will pay its sha're of all WNP-2 costs regardless of whether or not WNP-2 is completed, operable or operating.
The third level of funding assurance is provided by BPA's obligation, through these contracts, to make up any deficiencies in WNP-2 project costs not provided by the participating utilities.
Although we have not updated our formal 1982 financial review, the staff has, in light of WPPSS'erious financial problems, kept abreast of financial arrangements for WNP-2.
The funding assurances for operation and decommissioning identified in 1982 remain in place.
Additionally, in a
- recent letter dated August 2, 1983, Mr. Peter T. Johnson, Administrator, Bonneville Power Administration, reaffirmed to Mr. Don Mazur, Managing 83i2230i5i 83i207
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Director, HPPSS, that BPA would pay for the cost to complete construction of WNP-2 from BPA revenues.
The overall HNP-2 operating budget was approved in the spring of 1983 by HPPSS, BPA and the participating utilities.
With respect to costs which might result from an accident after the plant goes into operation, HPPSS has expressed its intention to buy property insurance on HNP-2 of at least
$568 million, the current minimum total coverage required under NRC regulations (10CFR 50.54(w)).
HPPSS is also looking into legal and constitutional questions pertaining to its ability to purchase additional property insurance on the unit above the minimum required.
Lastly, in case of liability arising from injury to a member of the public, HPPSS would be covered by provisions of the Price-Anderson Act.
I trust the above information is responsive to your request.
Sincerely, myna year~~ J. gLh, William J. Dircks Executive Director for Operati'ons Distr ibution See attached list Retyped in ODEDO.
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The Honorable Jim Weaver, Chairman Subcommittee on Mining, Forest Management and Bonneville Power Administration Committee on Interior and Insular Affairs United States House of Representatives Washington, D.
C.
20515
Dear Mr. Chairman:
This is in response to your letter to Chairman Palladino, dated October 11, 1983, in which you asked the status of the review of the current financial situation of the Wash ngton Public Power Supply System (WPPSS) on licensing of WPPSS Nuclear Proje t No.
2 (WNP-2).
Although press accounts m g have indicated that there is currently a further NRC review of the impact os WPPSS financial problems on the licensing of WNP-2, such is not the case+
In so far as we know, there is no reason to expect that the WPPSS financial problems associated with its other nuclear projects will have an impact on,WNP-2.
In fact, in a recent letter dated August 2, 1983, Mr. Peter T. Johnson, Admini 'trator, Bonneville Power Administration, reaffirmed to Mr./Don Mazu
, Managing Director, WPPSS that
'PA would pay for the cost to complete c
struction of WNP-2 from BPA revenues.
A copy of the letter from WP S to NRC on this subject is enclosed.
I trust the above information is res native to your request.
I would be pleased to provide any additional i forth tion relating. to this matter which you may find necessary.
Sin erely,
Enclosure:
r Letter (Sorensen to,Schwencer) dated August 15, /1983 William
. Dircks Executive Director for Operations
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