ML17305B519
| ML17305B519 | |
| Person / Time | |
|---|---|
| Site: | Palo Verde  |
| Issue date: | 04/26/1991 |
| From: | Dutsch Y ARIZONA, STATE OF |
| To: | Dyer J NRC |
| References | |
| NUDOCS 9105100161 | |
| Download: ML17305B519 (6) | |
Text
ACCELERATED 'DISTRIBUTION DEMONS TION SYSTEM REGULATORY INFORMATION DISTRIBUTION SYSTEM (RIDS)
ACCESSXON NBR:9105100161 DOC.DATE: 91/04/26 NOTARXZED: NO FACIL:STN-50-528 Palo Verde Nuclear Station, Unit 1, Arizona Publi STN-50-529 Palo Verde Nuclear Station, Unit 2, Arizona Publi STN-50-530 Palo Verde Nuclear Station, Unit 3, Arizona Publi AUTH.NAME AUTHOR AFFILIATION DUTSCH,Y.M.
Arizona, State of RECIP.NAME RECIPIENT AFFILIATION DYER,J.E.
NRC No Detailed AffiliationGiven
SUBJECT:
Requests info re circumstances surrounding outages of all three units in 1989 6 why NRC did not issue federal govt order to shutdown units due to problems w/valves,sys, lighting
& maint practices.
DISTRIBUTION CODE:
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TITLE: Distribution for Atypical 50 Dkt Material NOTES:STANDARDIZED PLANT Standardized plant.
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RECIPIENT ID CODE/NAME PD5 LA TRAMMELL,C DYER,J.E.
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1 RECIPIENT ID CODE/NAME PD5 PD THOMPSON,M AEO~DJ3S NPAB REG FILE~~OG.
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NOTE TO ALL"RIDS" RECIPIENTS:
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AONA DEPARTMENT OF KENUE 1600 WEST MONROE - PHOENIX, ARIZONA85007 FIFE SYMINGTON GOVERNOR PAUL WADDELL DIRECTOR April26, 1991 James E. Dyer United States Nuclear Regulatory Commission Washington, DC 20555
Dear Mr. Dyer:
Last week I spoke with Mr. Charles Trammell of your office regarding the Palo Verde Nuclear Generating Station located here in Arizona, specifically discussing the circumstances for the outages of all three units in 1989.
Our Department is responsible for the valuation of electric utility property for ad valorem property tax purposes.
In Arizona, the value upon which property taxes are based for electric utilities.is the net book value ofplant in service.
However, the law provides a reduction in the plant in service value under certain circumstances, as follows: "The original plant in service cost shall be further reduced by the reduction in value u ed a
tae r fed 1
overnmental rder rohibitin total r
artial h sical use f u ili ro ert in excess of ix
~month." (Emphasis added).
Due to problems with atmospheric dump valves, steam bypass control systems, emergency lighting, reactor coolant pump power supply reliability and system engineering, operation, and maintenance practices, Unit 1 was out of service for sixteen months between March 5, 1989 and July 5, 1990, Unit 2 was out of service for over three months between March 15, 1989 and June 30, 1989, and Unit 3 was out of service for almost ten months between March 3, 1989 and December 30, 1989.
Our Arizona Corporation Commission, which has regulatory authority over electric utilities, has provided our Department copies of four "Confirmatory Action Letters" dated March 3, 1989, March 7, 1989, March 28, 1989 and June 28, 1989 issued by the United States Nuclear Regulatory Commission Region V.
Mr. Trammell has stated that the NRC did not issue a federal governmental order to shut down the units at the Palo Verde Nuclear Generating Station and did not issue a
federal governmental order prohibiting total or partial physical use of the property.
He further stated that the "Confirmatory Action Letters" were written "gentlemen's agreements" between the OTHER LOCATIONS: Tucson Government Mall - 402 W. CONGRESS - TUCSON East Valley - 1440/1460 E. SOUTHERN - TEMPE 9i05lOOibi 9i0426 PDR ADOCK 05000528 P
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pg 'I if
Mr. James E. Dyer April26, 1991 Page Two NRC and the Arizona Nuclear Power Project, which outlined actions to be taken to correct the problems at the power plant and to not restart Units 1, 2, and 3 prior to receiving NRC concurrence.
Would you please respond in writing to our Department verifying in fact that the NRC did not issue a federal governmental order to shut down the units at Palo Verde and did not issue a federal governmental order prohibiting total or partial physical use of the property.
We would appreciate your reply as soon as possible, but no later than May 27, 1991, because the Department must make final decisions regarding these values by June 3, 1991.
Ifyou have any questions or require clarification, please call me or Cheryl Murray-Leyba at the Property Valuation and Equalization Division, (602) 542-3529.
Sincerely, Pn 4'M.~
Yvonne M. Dutsch Utilities &Mines Group Centrally Valued Properties Unit YMD:sc cc:
Mr. Charles Trammell Project Manager, NRC
'I' V