ML19296D266
| ML19296D266 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 02/27/1980 |
| From: | Peterson J, Swartz L Office of Nuclear Reactor Regulation, NRC OFFICE OF THE EXECUTIVE LEGAL DIRECTOR (OELD) |
| To: | Chesapeake Energy Alliance |
| References | |
| NUDOCS 8003030117 | |
| Download: ML19296D266 (13) | |
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UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of
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METROPOLITAN EDIS0N COMPANY
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Docket No. 50-283 (Three Mile Island, Unit 1)
NRC STAFF RESPONSE TO FIRST SET OF L'ESAPEAKE ENERGY ALLIANCE INTERROGATORIES In accordance with 10 C.F.R. 62.720 and 10 C.F.R. 52.744 the NRC Staff has partially responded to tt e "First Set of Chesapeake Energy Alliance (CEA)
Interrogatories to the h a Staff" dated February 13, 1980. The Licensing Board on February 15, 1980 dismissed CEA contentions 2(b), 2(c) and 2(d).
Interim order on Late Filed Emergency Planning Contentions at 4.
The Staff, thec3 fore, will not answer those interrogatories which pertain to contentions 2(b), 2(c) and 2(d).
In addition, the Staff was unable to complete its responses to those interrogatories concerning CEA contentions 3, 5, 6, 7, 8,12 and 13. Answers not set forth today will be filed as soon as possible and at least by March 17, 1980.
Each interrogatory dealing with contention 9 is restated and a response provided.
Where appropriate, the NRC Staff has invoked that portion of the Connission's Order of August 9,1979 (slip op. at 11) which allows as an adequate response to a discovery request a statement that information is available in the Local Public Document Rooms and guidance as to where the infonnation can be found.
Although the NRC Staff has provided, as requested, names, addresses, and telephone numbers of individuals with knowledge of certain CEA contentions, parties are reminded that any contact with these individuals must be through the counsel
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for the NRC Staff.
Following the responses to the Interrogatories are affidavits identifying the individuals who prepared the responses and verifying them.
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- NRC Staff Answers to CEA Interrogatory Nos. 9-1 through 9-10 Financial Qualifications CEA Interrogatories 9-1 through 9-7
" Answer the interrogatories 2(b)-1 through 2(b)-7 with respect to contention 9."
CEA Interrogatory 9-1 [2(b)-1]
" Summarize and explain the NRC Staff position on the contention.
Identify all documents relied on in reaching that position."
NRC Staff Response: The NRC Staff believes. that the contention that the " licensees have inadequate financial resources to operate TMI-1 safely" is a valid and important issue to be decided in this proceeding.
In its review of the licensees' financial qualifications to operate THI-l safely, the Staff is relying primarily on infonnation supplied by GPU at the Staff's request. The Staff s requests dated September 21, 1979, and November 9,1979, as well as the licensees' numerous and voluminous responses are part of the public record. The Staff also relies to a lesser extent on information in a wide variety of publicly available financial journals and periodicals.
CEA Interrogatory 9-2 [2(b)-2]
" Identify those aspects of the contention that NRC Staff considers to be mat-ters of controversy.
For each of those aspects, sumarize briefly the oppos-ing positions on the controversy as perceived by the NRC Staff. Identify and sumarize any and all documents in support of either position."
NRC Staff Response: The controversy in this case is whether or not the licensees have reasonable assurance of obtaining the funds to operate TMI-l safely. This question must be addressed in accordance with the NRC's Order of August 9,1979 and the NRC's regulations at 10 CFR 50.33(f) and Appendix C to 10 CFR Part 50. The remainder of this interrogatory was answered in response 9-1, above.
CEA Interrogatory 9-3 [2(b)-3]
" Identify and briefly sumarize any and all documents known to the NRC Staff that would tend to provide evidence and or support for this contention."
NRC Staff Response: This interrogatory was answered in Response 9-1, above.
CEA Interrogatory 9-4 [2(b)-4]
" Identify any and all persons known to the NRC Staff who have knowledge or expertise that would tend to support this contention.
For each such person, provide name, address, telephone number, qualifications, and a sumary of the nature of the support (evidence or expertise) that person would be capa-ble of providing for this contention."
NRC Staff Response: This interrogatory is answered in Response 9-5, below.
CEA Interrogatory 9-5 [2(b)-5]
" Identify any and all experts that the NRC Staff intends to have testify on the contention; state the qualifications of each expert; and present a sum-mary of the testimony each expert is expected to provide."
NRC Staff Response: The NRC Staff presented a sumary of its ongoing financial review of the licensees in Section C7-1 of its January 11, 1980,
" Status Report on the Evaluation of Licensees' Compliance with the NRC Order dated August 9, 1979." As soon as the significant financial issues facing the licensees are resolved or are more clearly defined, the Staff will report further on the financial qualifications of the licensees. The Staff partic-ularly needs to know the outcome of proceedings and studies that have been comenced by and are presently pending at the Pennsylvania Public Utility Comission and the New Jersey Board of Public Utilities.
The NRC Staff plans that the following NRC Staff members will testify on CEA Contention 9.
The professional qualifications statement of each witness is enclosed.
1.
Jim C. Petersen 2.
Louis Gittleman 3.
Michael L. Karlowicz, Jr.
U.S. Nuclear Regulatory Comission Mail Station 266 Washington, D. C.
20555 (301) 492-7331 CEA Interrogatory 9-6 [2(b)-6]
" Identify any and all members of NRC Staff who dissent from the overall NRC Staff position on this contention, and for each of these persons, provide a sumary of their dissenting position on the contention."
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NRC Staff Response: As stated above, NRC staff members have not yet reached a conclusion or taken a position on the contention.
CEA Interrogatory 9-7 [2(b)-7]
" Identify the critical or central parameters of this contention as it is per-ceived and unde ' stood by NRC Staff, and briefly sumarize the NRC Staff's evaluation of ti e importance of each such parameter."
NRC Staff Response: As noted in Response 9-2, above, the NRC Staff is addressing the licensees' financial qualifications in accordance with the NRC's Order of August 9,1979, and the pertinent NRC regulations. The Staff understands CEA's contention (and the parameters thereof) to be that the li-censees do not fulfill the requirements of that NRC Order and of the pertin-ent NRC regulations.
CEA Interrogatory 9-8
" Provide a detailed summary of any and all documents prepared or comissioned
.for NRC Staff concerning the adequacy of licensee's financial resources."
NRC Staff Response: See Response 9-1, above.
CEA Interrogatory 9-9 "Specify the NRC regulations concerning the required financial resources of a licensee. Submit copies of any regulatory guides concerning these require-ments."
NRC Staff Response:
1.
Appendix C to Part 50 3.
There are no regulatory guides concerning these requirements.
CEA Interrogatory 9-10
" State whether NRC Staff has been participating in the ongoing Pennsylvania PVC hearings concerning Licensee.
If the answer is no, provide a complete and de-tailed justification as to why NRC Staff considers it unnecessary to so partici-pate, given the Commission's August 9 Order making the licensee's financial re-sources an issue in these proceedings.
If the answer is yes, provide a detailed
sumary of the preliminary conclusions of NRC Staff concerning the testimony and evidence in the PVC hearings,"
NRC Staff Response: The NRC Firencial Analysie Staff has not been part-icipating in Pennsylvania PUC hearings because tha NRC does not have juris-diction in ratemaking regulatory proceedings.
However, we are monitorinq these proceedings and will consider the record and any conclusions reached by the PUC in our analysis.
i Respectfully submitted, 6(4bt A
d Lucinda Low Swartz Counsel for NRC Staff Dated at Bethesda, Maryland this 27th day of February,1980
UNITED STATES OF AMERICA NUCLEAR REGULATORY C0lHISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of METROPOLITAN EDISON COMPANY, et al.
Docket No. 50-289 (Three Mile Island, Unit No.1)
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AFFIDAVIT OF JIM C. PETERSEN I, Jim C. Petersen, being duly sworn, do depose and state:
1.
I am the Senior Financial Analyst in the Office of Nuclear Reactor Regulation of the United States Nuclear Regulatory Comission.
I am responsible for the review and evaluation of the financial qualifications of nuclear facility license applicants and licensees, including the owners of Three Mile Island, Unit No. 1.
My profes-sional qualifications statement is attached.
2.
The answers to CEA Interrogatories 9-1 through 9-10 were prepared by me.
I certify that the answers given are true and accurate to the best of my knowledge.
,hN 0 0 b m C. Petersen i
Subscribed and sworn to before me this /l-day of 0..< J n>,w
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Notary Public My Comission expires:
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.2 UNITED STATES OF AMERICA NUCLEAR REGULATORY C0" MISSION BEFORE THE ATOMIC SAFETY AND LICENSING BOARD In the Matter of
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METROPOLITAN EDIS0N COMPANY, Docket No. 50-289 ET AL.
(Three Mile Island, Unit 1)
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CERTIFICATE OF SERVICE I hereby certify that copies of "NRC STAFF RESPONSE TO FIRST SET OF CHESAPEAKE ENERGY ALLIANCE INTERROGATORIES", dated February 27, 1980 in the above-captioned proceeding, have been served on the following, by deposit in the United States mail, first class, or, as indicated by an asterisk through deposit in the Nuclear Regulatory Commission's internal mail system, this 27th day of February, 1980:
- Ivan W. Smith, Esq.
Mr. Steven C. Sholly Atomic Safety & Licensing Board Panel 304 South Market Street U.S. Muclear Regulatory Commission Mechanicsburg, Pennsylvania 17055 Washington, D.
C.
20555 Mr. Thomas Gerusky Dr. Walter H. Jordan Bureau of Radiation Protection 881 W. Outer Drive Dept. of Environmental Resources Oak Ridge, Tennessee 37830 P.O. Box 2063 Harrisburg, Pennsylvania 17120 Dr. Linda W. Little 5000 Hermitage Drive Mr. Marvin I. Lewis Raleigh, North Carolina 27612 6504 Bradford Terrace Philadelphia, Pennsylvania 19149 George F. Trowbridge, Esq.
Shaw, Pittman, Potts & Trowbridge Metropolitan Edison Company 1800 M Street, N.W.
Attn: J.G. Herbein, Vice President Washington, D. C.
20006 P.O. Box 542 Reading, Pennsylvania 19603 Karin W. Carter, Esq.
505 Executive House Ms. Jane Lee P.O. Box 2357 R.D. 3; Box 3521 Harrisburg, Pennsylvania 17120 Etters, Pennsylvania 17319 Honorable Mark Cohen Walter W. Cohen, Consumer Advocate 512 D-3 Main Capital Building Department of Justice Harrisburg, Pennsylvania 17120 Strawberry Square,14th Floor Harrisburg, Pennsylvania 17127
.s John Levin, Esq.
Pennsylvania Public Utilities Conm.
Box 3265 Harrisburg, Pennsylvania 17120 Jordan D. Cunningham, Esq.
Fox, Farr and Cunningham John E. Minnich, Chairman 2320 North 2nd Street Dauphin Co. Board of Commissioners Harrisburg, Pennsylvania 17110 Dauphin County Courthouse Front and Market Sts.
Theodore A. Adler, Esq.
Harrisburg, Pennsylvania 17101 WIDOFF REAGER SELK0WITZ & ADLER Post Office Box 1547
- Atomic Safety and Licensing Appeal Board Harrisburg, Pennsylvania 17105 U.S. Nuclear Regulatory Commission Washington, D. C.
20555 Ms. Ellyn R. Weiss Sheldon, Hannon, Roisman & Weiss
- Atomic Safety and Licensing Board Panel 1725 I Street, N.W.
U.S. Nuclear Regulatory Commission Suite 506 Washington, D. C.
20555 Washington, D. C.
20006
- Docketing and Service Section Ms. Karen Sheldon U.S. Nuclear Regulatory Commission Sheldon, Harmon, Roisman & Weiss Washington, D. C.
20555 1725 I Street, N.W.
Suite 506 Robert Q. Pollard Washington, D. C.
20006 Chesapeak Energy Alliance 609 Montpelier Street Ms. Marjorie M. Aamodt Baltimore, Maryland 21218 R.D. #5 Coatesville, Pennsylvania 19320 Chauncey Kepford Judith H. Johnsrud Environmental Coalition on Nuclear Power 433 Orlando Avenue State College, Pennsylvania 16801 Ms. Frieda Berryhill, Chairman Coalition for Nuclear Power Plant
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Postponement
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e 2610 Grendon Drive Counsel for NRC Staff Wilmington, Delaware 19808 Holly S. Keck Anti-Nuclear Group Representing York 245 W. Philadelphia Street York, Pennsylvania 17404
JIM C. PETERSEN
_ PROFESSIONAL QUALIFICATIONS OFFICE OF NUCLEAR REACTOR REGULATION I am the Senior Financial Analyst in the Office of Nuclear Reactor Regulation, U. S. Nuclear Regulatory Comission.
I am responsible for the review and evaluation of the financial qualifications of nuclear facility license applicants to pursue pro-posed activities under a license, primarily the etnstruction and operation of nuclear power plants.
In this regard, I have prepared financial qualifications analyses for inclusion in the Staff's Safety Evaluations and for pmsentation as evidence on the mcord of the Atomic Safety and Licensing Board's safety hearings.
I have served as a Staff witness before the Atomic Safety and Licensing Board in a number of pro-ceedings. My work also involves keeping abreast of developments in the money and,
capital markets and in the electric utility industry.
I received a Bachelor of Science in ' Business Administration degree (awarded cum laude) with a major in Accounting from the University-of Denver in 1968.
I have con-tinued say fortnal education through college and university courses in finance, math.
economics and computer science and through several intensive short courses.
I am a member of Beta Gamma Sigma, the national business administration honorary, and Beta Alpha Psi, the national accounting honorary. The latter organization pmsented m with its award for outstanding service.
From 1968 through 1973, I was employed in a number of assignments on the staff of the Contro11e: of the Atomic Energy Commission. These assignments included reviewing, desigi. ng and implementing accounting syste.7s and procedu.es for AEC offices and AEC contractors.
I also assisted in the finar. rial review of nuclear facility license applicants during the period when that function was performed by independent staff members of the AEC Office of the Controller. That function was subsequently transferred in its entirety to the NRC.
In January of 1974, I joined the regulatory staff and assumed responsibilities in the financial qualifications mytew of nuclear facility license applicants.
I have worked in NRC financial analysis since that time, except for a one-year assignment at the U. S. Department of Energy where I worked on the financing of emerging energy technologies.
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._. 4 LOU GITTLEMAN PROFESSIONAL QUALIFICATIONS I am currently a financial analyst at the U.S. Nuclear Regulatory Commission.
I am responsible for reviewing the estimated construction costs or operating expenses, projected financing methods and under -
lying assumptions, regulatory trends, and money and capital marke'.
developments.
It is also my responsibility to serve as an expert witness in certain safety hearings before the Atomic Safety and Licensing Board wher. financial qualifications are a contested issue.
I was graduated from Lebanon Valley College in 1954 with a B.S.B.A.
in finance and suasequent'ly attended the University of South Carolina, George Washington University, and the University of Maryland majoring in finance and accounting.
I was formerly a member of the Anerican Management Association.
Prior to joining the Nuclear Regulatory Commission in December 1977, I was employed as a financial analyst with the Department of Health, Education and Welfare. My responsibilities in that. position related to the administration of the hospital financing program of HEW. My earlier experience was in the Pural Electrification Program.
I served for eight years as Executive Vice President and Chief Financial Officer of Mid-Carolina Electric Cooperative, a large member-owned rural electric system serving central South Carolina.
I was responsible for the overall operation of this utility, including all financial matters.
Earlier I served for ten years as both loan officer and in the rate division of the Rural Electrification Administration. My duties entailed evaluating the financial qualifications of applicants for Rural Electrification Administration Loans.
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MICHAEL L. KARLOWICZ, JR.
STATEMENT OF PROFESSIONAL QUALIFICATIONS My primary responsibility as Financial Analyst at the U. S. Nuclear Regulatory Comission is the performance of the financial qualifications review of applicants during the nuclear licensing process. This review i
l includes an analysis of estimated construction costs in construction per-mit proceedings and operating and decommissioning expenses in operating license matters.
Concomitantly, the financial review encompasses the projected financing methods by which the required funds will be obtained.
l For those entities which are regulated public utilities, examination is l
also perfomed of the climate and trends of its regulatory environment.
In this regard, I have prepared financial testimony for inclusion in supplements to the Staff's Safety Evaluation Report and for presentation at Atomic Safety and Licensing Board Hearings.
My responsibilities also include the monitoring and keeping abreast of the money r.nd capital markets, particularly those affecting the publicly and investor-owned electric utility sector of our economy.
In this respect, I maintain a regular course of comunication with the financial comunity.
This includes utility securities officers and specialists representing the major rating fims, investment banking institutions, brokerage houses, and the Securities Exchange Comission. Additionally, I serve as liaison for the NRC in financial matters with the Federal and State Utility Comissions.
I received a Bachelor of Science Degree with a majcr in Mathematics in 1972 from Saint Peter's College.
In 1976, I received my Juris Doctorate from the Delaware Law School.
Thereafter, I attended the post-graduate L. L. M. tax law program at New York University in 1976 through 1977.
Presently, I am undertaking studies in finance in the post-graduate program at the American University School of Business Administration.
I am a member of the John Marshall Honorary Society of Delaware Law School, the American Bar Association, and its section of Public Utility Law.
I am admitted to the New Jersey Supreme Court, the United States District Court for the New Jersey District, the United States Tax Court, the United States Court of Claims, the United States Court of Customs and Patent Appeals, and the District of Columbia Court of Appeals.
Prior to my joining the U. S. Nuclear Regulatory Comission in December 1977. I spent three years with the New Jersey Department of the Public Advocate, Division of Rate Counsel.
As both attorney and economist, my responsibilities included the represencation of the public interest in proceedings involving proposals of increases in rates or discontinuance of service by regulated industries.
In this respect, my responsibilities were the presentation of the public position and the cross-examination of expert witnesses representing applicants or intervenors before state negulatory comissions.
During the years 1969 through 1974, I was
. associated with Public Service Electric and Gas Company in the System Planning and Development Department and the Office of the Corporate Economist.
There. I was responsible for the conducting of short, medium, and long-range studies in financial planning, the preparation of expert testimony, the implementation and development of financial modeling, and the performance of economic analysis.
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