ML18052B457
| ML18052B457 | |
| Person / Time | |
|---|---|
| Site: | Palisades  |
| Issue date: | 01/15/1988 |
| From: | Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| References | |
| NUDOCS 8801250165 | |
| Download: ML18052B457 (1) | |
Text
~~ 1 5 1988
---MEMORANDUM TJt_FILE The Chairman and Chief Executive Officer of Consumers Power Company, Mr. William McCormick, Jr., the Vice President~Nuclear of Consumers Power Company, Mr. Fred Buckman, and two corporate representatives from Bechtel Power Corporation, Messrs. Harry Reisch and Robert Stone met with Mr. Victor Stello, Jr., Dr. Thomas Murley, and NRC staff representatives in Headquarters on January 13, 1988.
The purpose of this meeting was to discuss the joint venture resulting from the agreement by Consumers Power Company to se 11 two thirds interest in Palis~des to Bechtel' Power Corporation.
Consumers discussed the interim (approximately the next four years) and the long term lines of authority and responsibility.
In the interim period, the owners group will have financial responsibility and authority with Consumers having primary operating responsibility and authority under contract to the owners group.
Beyond the interim period, the owners group will assume total responsibility and authority for Palisades.
It was noted that the owners group may, at a future date, purchase other single unit, small utilities' plants to eventually form a regional operating company.
The potential benefit of such an arrangement in terms of improving safety and plant availability was discussed.
Consumers described the need for regulatory approvals from the Nuclear Regulatory Commission, the Michigan Public Service Commission, the Federal Energy Regulatory Commission, and the Securities and Exchange Commission.
Advance contact with Commissions other than NRC has thus far resulted in no apparent obstacles to approval; Dr. Murley did note that the NRC's license amendment process would create a potential for public hearings concerning this issue. Consumers and Bechtel are anticipating gaining regulatory approvals by the end of summer 1988.
The structure of the support organizations for the owners group was discussed.
Both Consumers and Bechtel intend to establish nuclear groups dedicated to the Palisades operation.
NRC participants noted that significant potential exists for both safety and economic improvement over the long term as a result of this joint venture by the two companies.
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'd:~lLJTION V Stello Jr JM Taylor T Rehm EDO r/f DEDRO r/f Central File
- DEDRO
- JMTaylor DATE : 88/01/ l'f
- 88/01/1
- 88/01/
Original Signed by V. Stello..
- Victor Stello, Jr.
Executive Director for Operations TO Martin RW Cooper PDR
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