ML19253C838
| ML19253C838 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 10/12/1979 |
| From: | Gossick L NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO) |
| To: | Marks M HOUSE OF REP. |
| Shared Package | |
| ML19253C839 | List: |
| References | |
| NUDOCS 7912120226 | |
| Download: ML19253C838 (2) | |
Text
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The Honorable Marc Lincoln Marks United States House of Representatives Washington, D.C. 20515
Dear Congressman !! arks:
This letter is in response to your letter to Chairman Hendrie dated August 2,1979, wherein you state your concern about the impact of the shutdown of the Three Mile Island (Ti!I) facility on consumer prices of electricity.
Also, you indicated that a restart of Till-l within a reasonably short period of time would be beneficial in tems of consumer prices.
Chaiman Hendrie has asked me to respond to your letter in view of the fact that there are now adjudicatory proceedings for Three !!ile Island, Unit 1, underway before an Atonic Safety and Licensing Board.
Under the fluclear Regulatory Comission I
(f1RC) rules of practice, Chaiman Hendrie and the members of the Comission will be called..upon to review the Orders and decision of the Licensing Board,and hence, it wouldfbe appropriate for him or other members of the Comission to coment on the matters raised in your letter.
Since the date of your letter, several actions have occurred which nay provide you sone perspective on the overall situation at Till.
As you know, the Comission on July 2,1979. ordered that Tf11-1 remain in a cold shutdown condition until further Order by the Comission itself.
Also, the July 2, 1979, Order stated that a public hearing would be conducted prior to the Ti1I-1 restart.
The Comission believes that public participation is a necessary factor which must take place prior to any restart for Till-l.
On August 9,1979, the Comission issued an additional Order on TitI-1 specifying the basis for the Shutdown Order and the procedure to govern the hearing on THI-l restart.
On the basis of this hearing, the Comission will detemine whether any further operation of Ti1I-l will be pemitted, and if so, under what conditions.
It should be noted that the Comission Order on THI-1 requires additional action itens on the part of the licensee which were not required in the confimatory orders to the licensees of all other Cabcock & Wilcox reactors sinilar to TitI-1/2.
I have enclosed a copy of the TMI-l Order issued on August 9,1979, for your infor-nation.
1539 329 During the Comission's deliberations on the TMI-l Order, a realistic date for expeditiously conpleting all of the tasks related to the Order was estimated.
(Sce back page of enclosed Order.)
I can assure you that the necessary actions have been initiated by the T1RC staff to meet the Comission's suggested schedule for the TMI-l resta-t. At this time, and based on the Comission's schedule, I k hu i.hu ean iiua suss ivie ua me -
ur mu mu i.i-i caces on-i me i> 5epcei.cer iEG.
iur dith e ard to the irpact of tile Tr il shutdown or consuner pri ces for eiect kicity,
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"t'I'fe"Ttn 1sylvania"Pubi te"Utiltty"Comission"fPPUC rin"tts" decision"and" order tssued-DATE M 3GC PORM 318 (9 76) NRCM 0244 8 v.s. eevannusev emmvene onesca s iets - ses - veo 7 91212 0 a 4
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The Honorable Marc Lincoln Marks -
on June 15, 1979, ruied that customers of Metropolitan Edison Company (METED) and j
the Pennsylvania Electric Company (PECO) would be free from expenses associated with the TMI accident except for a substantial portion of the purchased power costs.
Under this order, both METED and PECO are allowed to pass through a portion of the costs associated with purchasing power to replace the power that ordinarily would i
have been produced by the Ti1I facility.
However, the damaged THI-2 ficility has i
been removed from the rate base of both METED and PECO. At the present time, TMI-l l
remains in the rate base of both companies.
Based on the infomation available at j
this time I cannot specify what the not effect now is on consumer prices.
While we are, of course, concerned about financial impacts on consumers, the NRC's primary responsibility is the assurance of public health and safety.
State public utility comissions and the Federal Energy Regulatory Comission have primary responsibility regarding the rates that consumers pay for electricity.
Accordingly, f
the flRC does not have the information needed to estimate the impact that the TMI j
down-time will have on consuner prices for electricity.
I suggest you contact the i
PPUC or the companies themselves.
They should be able to provide information for your use.
i I trust this response addresses the questions raised in your letter.
If you have further coments, please direct them to R. H. Vollmer (telephone: 301/492-7347)
.within the Comission's Office of t'uclear Reactor Regulation.
Sincerely, l
ORIGINAL SIGNED BY R.G. SMITH Lee V. Gossick i
,/
Executive Director for Operations I
Enclosure:
Copy of August 9, l?79, Order Distribution Copies:
Docket flo. : 50-289 HShapar OCA (3)
NRC PDR Tt11 Inquiry DEisenhut Local PDR JCook HDenton 153o z z r' NRR r/f Secy ((4 ECase A
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JJU Tf1I Site r/f GErtter ED0=7057 Attorney,ELp Y SEP/Tl11 r/f l1Groff BGrimes PSB/TllI r/f RVollmer TJCarter
- Note:
See previous yellow LVGossick JCollins CNelson for concurrences.
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The Honorable " arc Lincoln t' arks '
During the Connission's deliberations on the TMI-l Order, a realistic date for expeditiously conpleting all of the tasks related to the Order was estimated.
(See bach page of enclosed Order.)
I can assure you that the necessary actions have been initiated by the NRC staff to meet the Comission's suggested schedule for the TMI-l restart. At this tir:c, and based on the Comission's'4chedule, I believe the earliest possible date for bringinr; T*.!-l back on 'iine is September 10P,0.
With regard to the impact of the T'il shutdown on consur'er prices for electri-city, the Pennsylvania Public Utility Cocaission (PPUC) in its decision and order issued,bn June 15, 1979, ruled that custoi.iers of "etropolitan Cdison Coupany (PETED) and the Pennsylvania Electric Corpany (PECO) would be free from expenses associated with the TMI accicent except for a substantial portion of the purchased po.ier costs.
Under this order, both ETED and PECO t re allowed to pass through a portion of the costs associated with purchasing power to replace the power that ordinarily would have been produced by the T!'I facility.
Houever, the damaged TMI-2 facility has been renoved frog the rate base of botF ".ETED and PECO.
At the present time, Thl-1 renains in the rate base of bot!. conpanies.
Cased on the inforr..ation available at this tire, I cannot specify what the net effect nou is on consuuer prices.
'c.hile t.e are, ef Course, Concerned a wt #inancial iyaCt5 ob Consuncrs, the
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NRC's pris'ary responsibility is ti.e assurance of public health and safety.
I State ruhlic utility comissions and the feceral Cner;y Pe ';1 story Cor2iission s
hdve prinary responsibility regarding the rdles ti at Consm ers pay f or eleC-tricity.
Accordingly, tt e 'CC does not %ve ti.e in' ort.ation needed to esticate the in. pact that the in! down-tine will have on consumr pricts f or electricity.
I suggest you contact the orUC or the conpanies t'ensclves.
They shoul! 5e aole to provide information for your use.
I trust this response vidresses the questions raised in your letter.
If you have further coments, please direct thcr to R.
H. Vollrmr (telephone 3r'1/ 02-724 7 ), within the ca.;ission's Office of ':nclear Reactor Regulation.
S i nce rel y,
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!xeCutive lir0Ctt.r 'er jerJtions
Enclosure:
Copy of.lucust ,1979 Grder 1539 E1
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