ML19115A110
| ML19115A110 | |
| Person / Time | |
|---|---|
| Site: | Oyster Creek |
| Issue date: | 04/10/2019 |
| From: | Brand S, Weeks B - No Known Affiliation |
| To: | |
| SECY/RAS | |
| References | |
| NRC-2018-0237, 83FR53119, 83 FR 53119 | |
| Download: ML19115A110 (4) | |
Text
- f PHIL MURPHY Governor State of New Jersey DIVISION OF RA TE COUNSEL 140 EAST FRONT STREET, 4TH FL P.O. Box003 SHEILA OLIVER Lt. Governor Via Regular U.S. Mail Ms. May Ma, Secretary Office of Administration Mail Stop: TWFN-7-A60M TRENTON, NEW JERSEY 08625 April 10, 2019 United States Nuclear Regulatory Commission Washington, D.C. 20555-0001 I
STEFANIE A. BRAND Director Re:
Oyster Creek Nuclear Generating Station; Consideration
Dear Ms. Ma:
of Approval of Transfer of License and Confirming Amendment Docket Nos. 50-219 and 72-15; NRC-2018-0237 Please accept this letter setting forth the position of the New Jersey Division of Rate Counsel ("Rate Counsel") in the above-captioned matter. Rate Counsel respectfully requests that, if the Nuclear Regulatory Commission ("Commission") approves the above-referenced license transfer application, it include conditions to safeguard the decommissioning trust fund and ensure it remains adequately funded until completion of the decommissioning process.
Rate Counsel has a statutory mandate under New Jersey law to represent utility ratepayer interests in federal and state proceedings, 1 including but not limited to rate-setting, reliability, capacity, transmission and environmental issues.
1 N.J.S.A. 52:27EE-46 to -55.
Tel: (609) 984-1460
- Fax: (609) 292-2923
- Fax: (609) 292-4991 http://www.nj.gov/rpa E-Mail: njratepayer@rpa.nj.gov New Jersey ls An Equal Opportunity Employer
- Printed on Recycled Paper and Recyclable
Honorable Commissioners U.S. Nuclear Regulatory Commission April 10,2019 Page 2 New Jersey ratepayers are vitally interested in the integrity of the trust funds established to ensure the complete and proper decommissioning of the Oyster Creek Nuclear Generating Station.2 Those trusts, valued last year at almost one billion dollars,3 were funded by New Jersey's Jersey Central Power and Light Company ("JCP&L") ratepayers.4 As long as there has been nuclear power in New Jersey, the Commission and the State have ensured the adequacy of nuclear decommissioning funds. 5 The trust funds must be spent efficiently and cannot be depleted before the final decommissioning of Oyster Creek. A premature depletion of the trust funds or an inadequately funded licensee could compromise the quality of the work, leaving New Jersey residents to bear public health, safety, environmental and economic costs.
Without adequate safeguards for the decommissioning trust funds, this proposed license transfer could introduce uncertainty into the decommissioning process, by replacing the well-established and well-funded operator and owner licensee, Exelon Generation Company, LLC, with new limited liability companies. Transferring the operating license and trust funds to these 2 See 10 C.F.R. § 50.75(b) (requiring licensees to submit a decommissioning report including certification of adequate financial assurance); 10 C.F.R. § 50.82 (post-shutdovvn decommissioning activities report to include projected decommissioning costs).
3 May 21, 2018 Oyster Creek Post-Shutdown Decommissioning Activities Report to the Commission, Exelon Generation Company, LLC, NRC Docket Nos. 50-219 and 72-15, p. 18 of 43, https://www.nrc.gov/docs/ML1814/MLl 814 lA 775.pdf (viewed 4/8/19).
4 JCP&L ratepayers continued to pay into those trusts even after JCP&L divested Oyster Creek in 2003, to repay amounts JCP&L had paid the purchaser. 2002 NJ Regulation Text 15431, NJAC 14:5A, adopted rule May 8, 2003. In the sale, JCP&L agreed to fund the trusts up to $430 million. I/M/0 Verified Petition of JCP&L seeking approval of the sale of the Oyster Creek Nuclear Generating Station, NJBPU Dkt. No. EM99120917, Final Decision and Order, Nov. 21, 2003, 2003 N.J. PUC LEXIS 406, *9-* 10; $_y~ 10 C.F.R. § 50.2 ("cost of service regulation" allows utility to charge customers reasonable and prudent nuclear decorn.... >nissioning costs).
5 Before 1993, State oversight was in the context of electric utility base rate proceedings, and since then by NJBPU regulations. N.J.A.C. 14:5A; see 29 N.J.R. 2637(a), June 16, 1997.
Honorable Commissioners U.S. Nuclear Regulatory Commission Aprill0,2019 Page 3 new entities raises critical concerns about whether they have sufficient financial resources and expertise to properly complete the decommissioning within the resources of the trust and to completely fund any additional financial assurances that the Commission may require.
Absent adequate safeguards, depletion of the decommissioning trust funds could shift risks onto New Jersey residents that should be borne by the merchant generator facility.
Conclusion Rate Counsel respectfully requests that, if the Commission approves the above-referenced license transfer application, it include conditions to ensure that the decommissioning trust fund will remain adequately funded until completion of the decommissioning process.
c:
Service List Respectfully submitted, STEFANIE A. BRAND DIRECTOR, DIVISION OF RATE COUNSEL By: ~J/~
fuianWeeks, Esq.
Deputy Rate Counsel
May Ma, Secretary Office of Administration Mail Stop: TWFN-7-A60M United States Nuclear Regulatory Comm.
Washington, D.C. 20555-0001
- John Lamb Office of Nuclear Reactor Regulation US Nuclear Regulatory Commission Washington, DC 20555 Brian 0. Lipman, Esq.
Division of Rate Counsel 140 East Front Street, 4th Fl.
Trenton, NJ 08625 Maria Novas-Ruiz, Esq.
Division of Rate Counsel 140 East Front Street, 4th Fl.
Trenton, NJ 08625 IMO Oyster Creek Nuclear Generating Station; Consideration of Approval of Transfer of License and Confirming Amendment Docket Nos. 50-219 and 72-15; NRC-2018-0237 SERVICE LIST
- Paul Dressler Concerned Citizens of Lacey Coalition
- Ron Martyn, Chairman Concerned Citizens of Lacey Coalition Ami Morita, Esq.
Division of Rate Counsel l 40 East Front Street, 4th Fl.
Trenton, NJ 08625 Debora Layugan Division of Rate Counsel 140 East Front Street, 4th Fl.
Trenton, NJ 08625
- via email only
- Amy Snyder, Senior Project Manager Reactor Decommissioning Branch Division of Decommissioning Office of Nuclear Regulatory Comm.
Washington, DC 20555 Stefanie A. Brand, Esq., Director Division of the Rate Counsel 140 East Front Street, 4th Fl.
P.O. Box 003 Trenton, NJ 08625 Brian Weeks, Esq.
Division of Rate Counsel 140 East Front Street, 4th Fl.
Trenton, NJ 08625 Celeste Clark Division of Rate Counsel 140 East Front Street, 4th Fl.
Trenton, NJ 08625