ML18101B289
| ML18101B289 | |
| Person / Time | |
|---|---|
| Site: | Salem  |
| Issue date: | 03/21/1996 |
| From: | Olshan L NRC (Affiliation Not Assigned) |
| To: | Eliason L Public Service Enterprise Group |
| References | |
| NUDOCS 9603270052 | |
| Download: ML18101B289 (6) | |
Text
r-Mr. Leon R. Eliason Chief Nuclear Officer & President-Nuclear Business Unit Public Service Electric and Gas Company Post Office Box 236 Hancocks Bridge, NJ 08038 March 21, 1996 ~
SUBJECT:
RESPONSIBILITIES UNDER 10 CFR PART 21, 10 CFR 50.72, AND 50.73 WITH RESPECT TO LITIGATIONS, SALEM NUCLEAR GENERATING STATidN, UNITS 1 AND 2
Dear Mr. Eliason:
The NRC is aware of a complaint filed in U.S. District Court for the Eastern District of Pennsylvania and a separate complaint filed in Atlantic County, New Jersey, in the Superior Court of New Jersey.
Both complaints ask for compensatory damages from Public Service Enterprise Group, Inc., and its utility subsidiary, Public Service Electric and Gas Company, for the shutdown of Salem Nuclear Generating Station, Units 1 and 2.
The NRC has no position on the merits of the complaint, however, we remind you of your responsibilities under 10 CFR Part 21, 10 CFR 50.72, and 50.73 for the review, evaluation, and reporting to NRC of defects in safety-related equipment, materials, and services which may be identified by you at any time.
This includes any such information of which you become aware through the review and discovery process related to this complaint.
Docket Nos. 50-272/311 cc:
See next page DISTRIBUTION Docket File (50-272/311)
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/SJ Leonard N. Olshan, Senior Project Manager Project Directorate I-2 Division of Reactor Projects - I/II Office of Nuclear Reactor Regulation JKopeck EJordan JStolz OGC ACRS NRR Mail Room (YT #960034 w/incoming)
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UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 Mr. Leon R. Eliason Chief Nuclear Officer & President-Nucl ear Business Unit Public Service Electric and Gas Company Post *office Box 236 Hancocks Bridge, NJ 08038 March 21, 1996
SUBJECT:
RESPONSIBILITIES UNDER 10 CFR PART 21, 10 CFR 50.72, AND 50.73 WITH RESPECT TO LITIGATIONS, SALEM NUCLEAR GENERATING STATION, UNITS 1 AND 2
Dear Mr. Eliason:
The NRC is aware of a complaint filed in U.S. District Court for the Eastern District of Pennsylvania and a separate complaint filed in Atlantic County, New Jersey, in the Superior Court of New Jersey.
Both complaints ask for compensatory damages from Public Service Enterprise Group, Inc., and its utility subsidiary, Public Service Electric and Gas Company, for the shutdown of Salem Nuclear Generating Station, Units 1 and 2.
The NRC has no position on the merits of the complaint, however, we remind you of your responsibilities under 10 CFR Part 21, 10 CFR 50.72, and 50.73 for the review, evaluation, and reporting to NRC of defects in safety-related equipment, materials, and services which may be identified by you at any time.
This includes any such information of which you become aware through the review and discovery process related to this complaint.
Docket Nos. 50-272/311 cc: See next page Sincerely,
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Leonard N. Olshan, Senior Project Manager Project Directorate I-2 Division of Reactor Projects - I/II Office of Nuclear Reactor Regulation
"*,'.~r. Leon R. El i a son e Public Service Electric & Gas Company cc:
Mark J. Wetterhahn, Esquire Winston & Strawn 1400 L Street NW Washington, DC 20005-3502 Richard Fryling, Jr., Esquire Law Department - Tower SE 80 Park Place Newark, NJ 07101 Mr. Clay Warren G*eneral Manager - Salem Operations Salem Generating Station P.O. Box 236 Hancocks Bridge, NJ 08038 Mr. Louis Storz Sr. Vice President - Nuclear Operations Nuclear Department P.O. Box 236 Hancocks Bridge, New Jersey 08038 Mr. Charles S. Marschall, Senior Resident Inspector Salem Generating Station U.S. Nuclear Regulatory Commission Drawer 0509 Hancocks Bridge, NJ 08038 Dr. Jill Lipoti, Asst. Director Radiation Protection Programs NJ Department of Environmental Protection and Energy CN 415 Trenton, NJ 08625-0415 Maryland Office of People's Counsel 6 St. Paul Street, 21st Floor Suite 2102 Baltimore, Maryland 21202 Ms. R. A. Kankus Joint Owner Affairs PECO Energy Company 965 Chesterbrook Blvd., 63C-5 Wayne, PA 19087 Mr. Elbert Simpson Salem Nuclea~enerating Station, Units 1 and 2 Richard Hartung Electric Service Evaluation Board of Regulatory Commissioners 2 Gateway Center, Tenth Floor Newark, NJ 07102 Regional Administrator, Region I U. S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 Lower Alloways Creek Township c/o Mary 0. Henderson, Clerk Municipal Building, P.O. Box 157 Hancocks Bridge, NJ 08038 Mr. Frank X. Thomson, Jr., Manager Licensing and Regulation Nuclear Department P.O. Box 236 Hancocks Bridge, NJ 08038 Mr. David Wersan Assistant Consumer Advocate Office of Consumer Advocate 1425 Strawberry Square Harrisburg, PA 17120 Ms. P. J. Curham MGR. Joint Generation Department Atlantic Electric Company P.O. Box 1500 6801 Black Horse Pike Pleasantville, NJ 08232 Carl D. Schaefer External Operations - Nuclear Delmarva Power & Light Company P.O. Box 231 Wilmington; DE 19899 Public Service Commission of Maryland Engineering Division Chief Engineer 6 St. Paul Centre Baltimore, MD 21202-6806 Senior Vice President - Nuclear Engineering Nuclear Department P.O. Box 236 Hancocks Bridge, New Jersey 08038
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HOI t.t1rlcet Sll'HI PO Bolt 8899 P"hUlldelphlil, P"A \\1101*Hff 215141 ll!SS P.02 PECO ENERGY News Release FOR IMMEDlATE RELEASE March 5, 1996 CONTACT Bill Jones,.215 841 4129 TWO CO-OWNERS OF SALEM GENERATING STATION SUE PUBLIC SERVICES ENTERPRISE GROUP OVER PLANT SHUTDOWN Charging that mismanagement and misconduct caused the shutdown of the Salem Generating Station in New Jersey, suit was filed today in the US District Court for the Eastern District of Pennsylvania against the operators of the plant.
The suit was filed by PECO Energy Company, of Philadelphia, and Delmarva Power & Light Company, of Wilmington, Del., against Public Service Enterprise Group. Inc.* and Us utility subsidiary. Public Service Electric and Gas Company, of Newark, NJ. PECO Energy owns 42.59 percent of the plant. De1marva owns 7.41 percent.
Atlantic Electric Company, a third co-owner of Salem, which also owns 7.41 percent, has filed a separate lawsuit ln Atlantic County, NJ, In the Superior Court of New Jersey.
T~e. PECO Energy and Delmarva suU charges_ the defindants failed to adequately respond to numerous citations, warnings, notices of violalions and fines by the Nuclear Reg\\Jlatory Commission (NRC)1 as well as repeated warnings froni the Institute of Nuclear Power Operations (INPO) about performance, safety and management problems at Salem. Further, they failed to take appropriate corrective action.
These actions and omissions, the suit says, constituted mismanagement and breach of contract with the station's ccrowners and forced the defendants to shut down Unit 1 on May 16, 1995, and Unit 2 on June 22. 1995. The NRC has ordered that the units cannot ba restarted without NRC pennlsslon.
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. i' I'.,. r ADD ONE: SALEM CO-OWNERS SUE PUBLIC SERVICE PECO Energy end Delmarva claim that as a result of the shutdown, they have been denied their share of Salem generation and capacity, have been deprived of the benefits of their ownership intarests. and have made payments to the defendants for capital, operating and maintenance costs for which they have received no benefit In addition, the shutdown Is costing the co-owners millions of dollars a month in replacement powar costs.
Therefore, the suH asks for oompansatory damages for breaoh of contract and for the defendants' *gross negligence, willful, wanton end reckless mlacond~
and Its misfeasance in performance of the Owners' Agreement.* as well as punitive damages *1n amounts to be determined.*
TOTAL P.02