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Death & Taxes:An Investigation of the Initial Operation of TMI-2
	ML19248D397
Person / Time
Site:	Crane
Issue date:	04/05/1979
From:	Bancroft M, Mcintyre R, Stulberg R; PUBLIC CITIZEN LITIGATION GROUP
To:	;
Shared Package
ML19248D396	List: ML19248D395; ML19248D397;
References
	TASK-TF, TASK-TMR NUDOCS 7908150735
	Download: ML19248D397 (30)
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_. i s investigation of events precedi:"; t.n e.1.1rea in Mile Island nuclear accident was conducted by Public Citizen from " arch 30, 1979 to April 4, 1979. The findings are based upon documents cn file at the ':uclear Regulatory Ccmmission, U.S. Federal Enerts Regulatory Cccr.ission and U.S. Securities and Exchango Ccmmission. Every fact in the findings is documented in rcotnotes to this report. C.'. ~T. e.' ' t'. .'.''.'..#~., I -1 ,.f r. r a. ". 4 - t.1 g

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_3 nc.c 3.a g.e r e n ao. r, s- .re q u.4.r e u, unuer u.u.t, ~.~..o. C '.' 4-~ a . _.. = ~ m 1 m.- -o --o-o e C _,,, n_ a n.,.n. I., +.o . e a n t;, + u. u, r. m, a.c. o_ r, a o n C C.. . C.n, u,. ,u, m m ~ (4) 'Jnder federal tax laws, Met Ed and the Cther C.~.orr of TMI-2 Could Collect suostantial investr.ent tax Credi ts (i.e., direct t a:.. write-offs) in 1373, orovida d TI-2 tas nlaCad in service during the ta:.. rear endina. December 31, 1978. Internal c

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N. i +"a ..h e 1-'e d e. a l c~ n c'. u~ v.ry' m.'a m ^e " ". C -.. y u.."; c o. s c CCn.missiCn, indicate that TMI-2's owners expected to gain a c. p rC:< ina te lv. $17-23 milliCn in in"est~.ent ta:. Credits as a direct result Cf placing the reactor in service 25 hours befCre the 1973 tax dcadline. (:) "; " d. o -.' u' d o_. a 1 _ a s. 1 u,'.wc,.'/. o_ *m ~_ d a..d ~.~i_' " ".1 L> -. v... _. o" s .u s of TM:-2 CCuld take 6 months Cf depreciatiCn deductions Cn TM -2 ir 1978, orCvided the olant.tas c. laced in sorsiCo durin.: the 4- " o o m.; ". _1 s " o "

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hat the.clant ias safe before aein9 claced in accre rci al cperation, the haunting question remains:

Could the : arch 28, 1979 accident have been prevented by a rational util t; t a :-

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. 3_ The Cause of the drop in pressure.ias fcund to be ic.adegaana design of the main steam release valves, five of *icn opened and failed to Close. The plant shut down for five months while engineers "edesig.ed and rnpleCed all thu staam release valves. .r ,, n..+_ ; .e s. m u. n ma.s uu. Althouch Met Ed,3 encineers were nav:.n8~ ci;t culties with the reactor, the Ccapany's accountants '. vere already Counting the dellars whiCh the nov facility wou.d.; ring ti.e ,,..4 1 4., uw j. Unler federal tax laws, the government prcvides two ';inds g cf sucsicles to ut.ilities and ot..er ausinesses for Cap 1.tal investment. One, the investment tax Credit, allows CCmpanias 1 3 ^., e,; w '. u, -n ~ +- n T n,.

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_S. Under the tax laws, IRC $46(c) (li, howe-r, most of that credit could only ce claimed in the year TMI-2.zas placea in service.*/ Therefore, TMI-2's owners had a major financial mn c a.. i "< o_ ~. o o " *

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,0 1 ' 7. 4.^ c c -.s.e.r ^ i a ' s e '".. m" u> " a # ^ ~e-t.". o. i . 6 v u ~_.. end of the current tax year - December 31, 1973. According to documents filed by Met ZG and JCrs;.ith the cederal nnergy Regu atory omnission, t.ne ccmpanies tere vel m aware or this tax requirement an,u were p,anning acccrdingl;. In April 1978, Met Ed prepared a financial forecast ;1u ch predicted net investment tax credits in 1978 totallinc S10.9 s million. 90% of that total was projected after mid-year, wnen TM1-2 was scheduled to go into service. (See attached graph). In Jul, 1973, JCP&L prepared a similar financial forecast inich predicted net investment tax credits in 1978 totalling 323.9 million. The forecast showed creci s scaring in ':ovember and December, wnen TMI-2 was then scheduleu to go into service. (See attached graph). Evaluation Of these figures .i n d i c u-c_ c,a- "h.'~.

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v'.. u.ic " "g m' *- _4 ~.- 4 ~..~uc.~..". ta> credits of $17-28 million frca the placing in ser11ce of ,. r.A ~,.n 19,,,. 0 i.- Pu :ing the plant in service in December 19'3 :culd a1'o "o_ m.4* .".o. ~..'". e." a~

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.h u, '.# ".e '.m _ u'u'-^--_-...- ,^4 r r m e. deductions on TMI-2, IRC 516 2 (m) ( 2 ) ; Treas. Regs. 31.16 ~ s. - 10. because the companies " utilize liberalized aegraclat: " n * ".c d a^ a."_. d

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7.. even greater amount.*/ In ad:.ition, CPU had based _. t 3 cro'ections in a series at. util tv. rate cases on tne .o rc c.c 10:' J that TMI-2 would be in servica in 1973 and that the tax benefits woulci be obt.ained. Without those benefits, the projections would have to be revised. In short, -he availa-b i '.4 "y" o.#

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-4 y..".'_..o, i ~ ~ ~ a for GPU and its subsidiaries. The Other Financial Incentives, In addition to the substantial tax incentives for olacing the olant i nto commercial oc.eration by December 31, 1978, the owners of TMI-2 had other reascns to move quickl;. In

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3 4... ~. v^ ^e,.- C.' ^ c ".,~ v,.C a.'. o, T n c ^ e r ' " o. u'."." o - 4 n v. o l '..4 n t y u ^ e ,qiCh led to loss of feedwater, Caused a reactor trip cr . o u. a.n. n e 3. u n.o m..e v. m, C *_' c " *- " sD A C ^v u " " O' "v *1 . o V u' "...~ _." "e, a"'."".."" wk 4 s i r 3 - .#. om n u .o. .# a.i.l u. e. ' "a o m _' C _~ C ^ " A_ a r o c,-.,.,v C-d . e o d'. m'

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y.. cas slightly above normal for test ourposes. ReduCac crimar'. Coolant o. ressure brouc.ht in the emergency Core CoCline; s" ster e a c., a n. Dials indiCatea that there was belCw-Ze-o VClume Of e.w. e p.r n S.,,a r.4, e.", '.v."4.4 %.." e g u. a " _ a " ". _ y -.4 e."'; o" v,_ o 1 a r. *_ < u- ,c - o. v Coolant pressure, but Met Ed later reported that its Calc'la-tions snowec tnat t.g.e pressurizer vas never amp ;. On November 21, Men Ed found that the feedwater s'ister was Contaminated

c. th turbine lubricating cil.

This put :ne turbine out o f service for the 11 days recuired to C'aan ap the 4 o m o l m, u-._. s..c._CD. at,_ c v n m,r., n ~,

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9 hith just 25 hours left before the end of r.h a 1978 tax

v. e a r, TMI-2 was declared to be in commercial service at 11 p.m. cn Saturaa)

December 30. m..a.e a~.:+ e e a vn-u The owners of TMI-2 cuickly began to realize financial benefits from the decision to place the unit in ccmmercial cperation. In January, 1979, the Pennsylvania Public Utilities., Ccamission granted Penelec an increase or_ db6.., ml llon in : eta 11 base rates, of which $26.4 was attributable to TMI-2. The same month, JCP&L was granted a $33.3 million hike in reta 1 base rates, including $19 million applicable to TM -2. B;c months later, Met Ed would gain a $49.2 millior hike from the Pennsylvania Commission. In accition, the comoanies, annual re"cres a,,- .-n a.xac the plants as 7. " major milestene" contributing to "a memorable year." The r nual reports also anncunced decreases in tax cua in cart to . e o. l a c i n a. in service of the TMI-2 nuclear cenerating unit in December 1973." However the coerational or:blems continued. Du.-inc a r 1a,. n/-, a. m "u m a.. ~ c' t' l v~.. a- .- " o_ - - - u L, a.; n e .4r u ._.n n o n v, m,,,. u a.r,, c n ""n~ o e and power to the cressurizer in theprimary coolant system was lost, causing a reactor trip. The reactor vas out of ser,1cc fcr .s uyo .v.-. epa.a.o. e .b A...- - p e w l.. n.'oced na1%. c 4.- -.g .t,rmiu va 0, ' c. / o, q^ O Ln-v o y.. seCondar} CoClint systGC, T.alfunctiCn of a f e l Cw C t O r 9 0=',. , a .v 2.1., L,. y c.7..e.,. S.h.e ,g.e o c s,d v 4 -n.r 3 w-4 c.y.; n g r e n n u,.. d 3 3

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,u-CHRO::OLCG7 February 3o 1973 Nuclear Regulatory Commission (: 3 C)

c. rants Metropolian Edison (Met Ed) cperating l2cence DPR-730L for Three Mile Island.;o.

2 nuclear generating unit ("MI-2).1 March 13, 1973 .'le t Ed informs NRC of Dredictec s e s.r t u n schedule for TMI-2. Company says the. unit ..4,, a C.,. 4 eve C.r.4 4 al4. 1 x,, .vi a.r .s. .. 3, .a c, m; ..u s l-,/a, Wil.3 Droduce e.3G C tr i c i t'/ D V. P.D. r ~.., r d u, and will go into commercial op..atic b ', May 30, 1973.2 2 March 23, 1978 TMI-2 achieves initial critical:.t".' ..,-.h. ,9, , ),/ o - cue 1a. c.. c m,,m, c 4, - t.h. e-nav-, -..g... .s a a + v. .m. v v s. a A relief valve in the preasurizer c^ ens ana 4- +..b. e ^ .4.. a -'; " ^ o '. ua n *. g u'.e..m." u' m c7..c p Doint that the emergency core cco W a.atem J (.r r r ).i - m C +m,. 4,, a n.. el a.r. G. I,. ]' e t, t.,.s .c.,,s-. 131 1 e .,._r-vva a v m hn. ,.,, c +_. o. 3 . t. m .M a.r..x. a.1, 14.3 7 g-.q n - u l u.., r'..' u3 1 ~'--' o r ".." i " C C 9. " a ". '; ('. e". w-,i o u s a; w SUCmitS annual report to Securitic. 'nd

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.h.* r. a Acril 13, 1973 The reactor trips due to spurious electrical a .i n. m.4ca&4 o n.. s 4 1a April 21, 1973 TMI-2 produces electricity for the first time.~* 3.pril 23, 1978 Another spurious elecrrical signal causes reactor trip and consecuent turbine trip. Five of t'.elve main steam release valvas open anc tall to e ose, causing raoid., css or. secondary cooli 7 Together with overfeeding of the steam generators, this causes rapid loss of pressure in the c.rimar coolinc. system. The ECCS is activated for the second time. Tater inspection and tests shcw failara of m exoansion bellcws liners dce to desia.n error and unsatisfactory performance of main steam relief valves. This necessitates redasign 2nd replacement of all the main steam relief . 4.".c. a- "a#omo_ ..'.m' a'... ..,,.. n a-a. i d ~"_ e.l.' C n s m. a ~ 1',. u,...I '1- . me uu,suurm d, 44 m.w-u r u un 3.,e 4..o u - u a C u,,. v - r... 4 c..a.4 ' t. r; a1, 1 G.. o'

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-u u . u v w. Ed to increase utill a rates allowina ',let u n ~s.4, l y u, m.4, 'i c# "..".T.~' u m43,l,.. .n amo.,- u v. uw s_ a c - 4 --.-.4 3c- - w.n. s *e a.r u.i n, c o...e.C 4,1 d u.r. 4 m b.., o n u uy m m -o < *uu. 1. n.. u. _. " *m =_ c'. .41.1 "m _o d o_ c.' a. e s *.h a ".o. "- N_ u _u .~m u v.... u, h.; s.u 1s r a. - n_ - L,. _4.- .-.. _, u _,.; .~c .c - cp e ra tion. le,a . v . 11 - w. ~ ~ a.i am_i..;s .a.4,., A u i ,4 A u S, . n. =. a ~, t, =cLu u-,.,e.v _c e s ~n ., e ...u me a .1 v-..u t.. allowing Penelec to increase atility ra as a' ^ u - c ' 7 ~.. 4 1 ' i o 4.n m'.. " 4 c _" y m' "- i c.". ~..n..'. u v. a._ m, - *. 4 n., .%...e.r n..i.. 1 c,.. .-_n. 7.,.k. r_' -,..., _2 _4 r,. .u a - 3 d o_ c.1, -,- ". "., * -. n_.r. o..' a_ c m".'.' nct " u= r' __" V_co g. m._a m uuwe~ .,n 4 4 '. 4 'I e

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..ww .4 9'*. _rs4 C'.m. L. C7 4_ h.. u.d.. , ua. , ]*- ..w wv.-,., p O [Q, Q ' Q,O,'/dV' _. ~ -. .-u,.a w - J.. e y q (, , C n. 7., 'v y.u $.- v w.D s w d.'. v. ~ i-' ^.. u,, -was. .,w -.i .J,.- r .c Ww vb . i r. , 1 > ~t J' Juli 11, 1978 4e t Ed reports to NRC predicted startup in September and cccmercial operaticn on.5 ep temb e r 1, 1978. Replacement of 12.ain steam safet'. val'zes with 20 redesigned 'zal'zes continues.15 August 9, 1978 Pennelec informs FERC that the " i n - s e r z'_ c e date of TMI-2" has been changed f rcm J.:ly 1, 1973 to October 31, 1978 "in order to replace .thich lailCa to scme non-nuclerr equipment, tes:1nc or tne ocr:orn acec.ua ten. curing tne ' nit."16 u A u a. u s "- l', .' 9 7 ' ve

c'

-c21 1o "a,~" nc 4.....,s o- _, _ v n r e v v e-a.:c-c, a,....u, c.4 a 2 t-r .,,m g u, a ,0, ,9<S anua . u. on Ncrember 1, 1975.A/ August 28, 1970 Burns and Roe, the TMI-2 architect-encineer, y r,1 4.. 4.,. 3.-,;. c c..' c ' ' f a - 4 c n.e., ..h = " ..a.4.1 u v.3.:.4.... a

.t.

Steam.gineS W O u l c..ce inCapaO_3G CZr '.i t,. stand-i inc turbine trio. from 1001

o. c'.ze r, so that a

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a v. channels dces not operate as the primar; c cl-ant pressure falls belc* the es 12'.1shed zalde tJo._C'_.Loe C " " L'1. " ", v v.. - ~. v. O& .' 0' 3 O "70.4 ~, - 3 "o,D'u'CL* 19 I..e .'. ' n i o".~, '.

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-Lb-November 15,. ~o Met Ed credicts to.:RC Commercial oceration On December 1, 1973.36 -o u c"und " o. " u' ^^.-=..;.".'"_=_d e n G; ".. a t u.- e ^- 4- "u o ". o.u" e." ~' l,

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1,- December 23, 1973 Test of backun diesel c.enarator ' ails due,- ~ _eg. Cor.'" ". 1 C c, c e "u .'..~.. e, ". 1.'C.'..' -c -'mv " 'u' *. p t.F p a.M.d b 1.*. Na.b.5 "' u,

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M c u. e _D'.- .k. e (_) u5 ) e D e, c c."., r4 e, P-n9 p. .s a required by startup procedure are run, observed by NRC_. inspectors. The NRC in3pec-tors are satistlet as _ar as can ce toia

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m_.'.~,.'_ . 3' then shut down to repair steam leaks.44 4~ December 29, 19S T:H-2 is run up to 443 power. December 3 0, 19 ^ 11 a.m. -- The turbine is s h u r c.' c. - to rep.ir a stear leak. ,.,J

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,ost and the react,r .95. AcaCtor. 1 ce Cooled to make repairs -- out of sc;;. ice fc_ 1 -) a u,.s.rc. D, .a 19,9 m .c ins -a en.. ._o uL~_-- i..~nr.. --,c. .~ a m, . L. a,-.,. e reel-aater are rounc to be cutside to., o r ac 3 e i limits for unknown reascr The 1.'atrumenta are re Ca _lora tec anL, ' au,_ t ace far reo.,2Cament at the next refueling.33 Januarv. 1979 Pennsylvania PubliC U tilities Commic: icn i s-<e to, crant.3 PeneleC 3 reCuest for a ra 2 .1.. s . u.7 ,-. v e r. 4.C.. o. '."..~_7 J

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April 3, 1979 Richarti ':urana%a, chief of the.:RC 's caeratinc Data Section, states in an inter.;e*. chat cae date of commercial operation of a nuclear plant is "left to the arility." de s a v. s "When ;iRC grants an operating permit, the company is authorized to operata. ' hen t.he company puts the plant i.nto commercial opera-tion really depends en their can structure. i,,ere,s scme tax ac, vantage -cr a clan: to c.c n into operation before the end of the fear. .snen a clan This is particularly evidentthe fear."b".t goes into operation late in / li. .t , c o

v .,v u.... ~.., z a,, 1. !uclea r Regulatory Cc:=ission (.:RC ) Facil' ties Application Eecord, 12/31/73. 2. .4etrooolitan Edison Comoany (:tet Ed) ton thlv Coeratina ^ ~ Report (:10R) for Februa ry 19 73, dated :4 arch 13, ^ 1973. 3. 40R for April 1978, dated ?!ay 13, 1979. 4. 'I RC " Grey Ecok" f3r Aprll 1978. ('10 R for ' larch 10 3 unnavailable) 5. " Form 10-K. Annual Report #cr the F i.s c a l e a r E:' io a h 1 c, "w... 4 - '_ e' C' M,r 'c e'..... a* '. ' r, I'..' <1- "1'a_c . ~ .G, , t, e.'.4..J 0. " s' '& s u Cc."c,any (ECnelec) to the securities an d E:< hange Com'.i s s ;or J t;- s--m j. .-3 c m,} '.r., u, e. =. L, A %, g " m, m a +i. =Gw

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sh .m..w 7-s,.. a sw P 9 [) g 3~. 'IO R for Nov. 1973, datec Dec. 15, 1978.' Letter from Pennelec attorney to FEP.C,.!ov 30, i n.,10. J Ga*v A V u, n 17, 1 G, 't.O. T ' 9 "/ p i p \\1C D .# o r LJ e c,., a 1 .a. a u e.._m a.,ona m

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m>..elac'- ,*-r--n- _v . A s ---w ..~; r ,m r m u> - n.r Ja. from Nashington, D.C. firm of Debevoise & Liberman, to Ke neth F. Plumb, Secretary of FERC, filed in connection Nith utility rate casa, Docket '!o. ER 78-494, November 3 0,, l o, ' o,. r ~ .9/3. ,, c,o. ,3, c-a2/a,9,.A, -n s9. unc / '!O R for Cec. 1978, dated Jan. 12, 1979. 4 n s ,n/O. ,rp ., _, n, G, a., L L t,w. / 3 / 47 .7 Ms. ww, AA ww 41. IO R for No'/. 1973, dated Cac. 15, 197S. 42. MOR for Dec. 1973, dated Jan. 12, 1979. 43. LER 73-74/3L, Jan. 23, 1979. U .') G, a t e a, san. 1.,, ,.9,9. ,n ., U,5

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62. h'ashinctcn Post, :Ia rch 28, 1979, o. 1. 62. Joe "alatesta, attcrney for Penns civania Public Utilities Commission, can'ce rs ation wit'. Robert 3. St icerg, c a ~I d. -w-v.L 6-_ u.sc3 u- { h...i, 3 4_ 64 '. '4 "b" ' a [ n,3 v, * .e ~ ".s u, &%, 0,3 --van y .~. _u s ~ e ,) M. D

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1m r wy L( i )E; ll u[ t.dlyl.Pq t n l V.!J J L npr41 - ,a.o s,. President Ji.my Carter Shite House Washington, DC r m_ a.-

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cu,, e. o-t m <e are addressina to v.ou the results o f o u r :..we s t i-gation of events related to the Three '.!ile Is l ar." nucle n :- ' eCause o f your publicly stated CCmmit'"ent to con-accident a duct a thorough investigation of the events leading ap 50 and followina that disaster. Our report, entit:ad " cad' and Taxes'. An Investigation of the Initial CperatiCn of Three :lile Island No. 2," examines the problems encounter 2u by TMI-2 after it was licensed by the ':uClear Regulatori L g., 4 - .' C ".. ( "- w ) i. n .E' b." "u u' "';' I970 a.". C'. " h. e 'u a.'. 4 ". C C ". "- " '^S a ...a co s w..., 4...-.7

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,t)e u s m %a + O W u s . s s o... =. J ...i-. e L, n. v.e.-.-.m_m., / 1 3 M Ci PMC ; ;r_1. T M E M_ E. N W. WW m im ' D.C in s ! i ' ?!iim C:TIZE o .i., t.-

,. c, o..i d t'... J i "~m' u"a _'" April 5, 1979 Page e in commercial service. (3) Deso.ite the #act that TMI-2 was e xe. c r ien c in a T.ech-anical failures and other problems in the period before December 30, 2978, 'le t Ed reported that i t had successf'lly ccccleted start-up tests and procedures required under the terms of its license and, thereafter, declared TMI-2 to be in corr.ercial service. (4) Under federal tax laws, Met Ed and the other owners of TMI-2 could collect s ubs tantial investment tax credits (i.e., direct tax write-offs) in 1373, provided 51I-2 cas placed n in service during the tax fear ending December 31, 1373. . 4 1,, ,o, 4 h.- 1.,. n. e, a._, r.- e n. m.,. c .us _u ..._a_-.,,3 o..ya.,,, a__ 4r

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-ou w n a.r.' ". w- = u _ w'. "...I '. ' a-C w-.....i s s _i ^ ^ . n. A. 4 " a v. ~e - n,u.' a ru : n a m s ~ to gain aoproximately $17-29 nillion in investment ta: _ crem ts

s a direct result a:. placing the reactor in ser" ice.: a t, e 19

_c t a r de a c,1;. ne. .ncurs ce rcre n i '3) Under federal tax laws, Met Ed and the other c;ners a _ a_., - 4 c.. 2 cn a.:

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..a c,, .,a m...,- ._ u. n.. a 7. o, yu a w a mi3 4..m, n_ly 3.m> .,4 1, i n, resuit or niacing ene on Dece o ,, u -.- r n --- .,~ -4 ._ 0 u.a 4, - g g. u -, r,. 3 n.4 2 -,s reactor in ser'nce . :.7 3. s,. oer ;,;, (6) In their 1973 annual reports, the owners of TMI-2 _',' a " i... c. ^ 1_'.n m, " ' lm' i n u~ mh m' n'h.o ' da_~o - k.. a '- y' m " o.' _' ' d o_ d

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e. April 5, 1979 Page 3 '.;e bel: eve Americans and, indeed all people cf tha crld, deserve an investigation of the causes of, dangers from, and lessons to oe learned from the T:'.I-2 accident which .-;e urge you to give p rio ri t'. ir jour investi-pulls no punc:.es. gation to the interaction of federal tax incentives with nuclear safety regu,ation. In ac...cition to tw..e other reco-rendaticas you make to prevent a recurrence of TMI-2, we urge you to press for the following actions: (1) The :GC should have an active role in conductine-start-2.c f s n o u., c- ,1., up operations and tests or nuc;, ear pcwer clants. .ne certify the results of these operaticns, anu w. t, approval a should be rec.uired to move to the next s t e c_. The RC mus: t i.-: e account of the financial motives of and pressures an its licensecs. (2) The federal tax structure governing public atilities e D, u c. u.,.e,.,. ; a. ,,w....,. 1 ,; ;.i c. -us .1 _ u m .. u, c. ~ h, t,.c.o.r...c : ,- m ,. t, 3 am at u mv ......m. >p eC. b..+. 4 .r-3 3 s v* ~...a e. 1n4 e.v+.i., c*.~ 31' ' s. o., w 4 1 1' *..i 3 -t o..i w w h e t X m m.n. 2 - v- .I r 3 n~1my yt u. yt .t. v -m. e h-w T b.. e e. e, s n n 4-i n ve s- * - a_.n..- ( " n k., n. ...

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m _va_ _ _ viaau, r v. the choice between nuclear pcwer and less capital in c e ". s i'ce energy conservation ar.d production means. (3) As a candidate, you declared that: .e d_a.. m'l e n...:.' a ; ~- -, wi*h. " C..' .# u.' '.

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f President Jimr.n Car ter April 5, 1979 Pace 4 29, 1977 corrents en the Administration's draft nuclear licensinc bill, changes in reculatory recuirements and local s challenges are not a.ajor cause of delay in corr.ancing nuclear ocuer clant operation. t h'e trust the go'/ernment will learn the lesson of T".!-2. The Administration and Congress should cooperate in ccnducting the investigation and proposing solutions to the problems fcund. In this sciritr we are sendinc. cocies of this letter and the report to the chair en of the congressional ccrr.ittees with durisdiction o'cer the repercussions of the tax code J on the vital issue of.nuc' ear safet'. . o l}. Y F b.Y, i 9, - o u l ,./ i t o.' n. w . -(..q f v-v v .'.t. 7 .i.. cu_r 1 \\ D' 74 % %..s W ~ ~ b.4 c:m.,.,, N. v.1., b,..1. s. 4 - m =T h't.: c. ,1

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