ML19305C003
| ML19305C003 | |
| Person / Time | |
|---|---|
| Site: | Oyster Creek, 05000363 |
| Issue date: | 03/06/1980 |
| From: | Harold Denton Office of Nuclear Reactor Regulation |
| To: | Grove L AFFILIATION NOT ASSIGNED |
| Shared Package | |
| ML19305C004 | List: |
| References | |
| NUDOCS 8003250461 | |
| Download: ML19305C003 (2) | |
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NUCLEAR REGULATORY COMMISSION f
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Mr.' Lee J. Grove 209 Kent Place Boulevard Summit, New Jersey 07901
Dear Mr. Grove:
Chairman John Ahearne has asked me to respond to your letter to him dated January 25, 1980 The Office of Nuclear Reactor Regulation reviews the
' financial condition of applicants for and licensees of nuclear facilities.
We appreciate the numerous concerns expressed in your letter regarding the financial condition of Jersey Central Power and Light Company and its par-ent company - General Public Utilities Corporation. Your primary concern is the study' proposed by the New Jersey Department of the Public Advocate, Division of Rate Counsel, to determine possible organizational alternatives for Jersey Central Power and Light Company, including mergers, bankruptcy proceedings, or a state take-over, and the effects these may have upon consumers, particularly as to rates charged for utility services. Although we share your concern, the Nuclear Regulatory Comission does not have au-thority in rate-setting for utilities who operate nuclear power plants.
However, the Atomic Energy Act of 1954 confers upon this Commission author-ity to license and regulate nuclear power reactors from the standpoint of public health and safety and common defense and security. In this context and as a result of an order of this Commission, proceedings have been ini-tiated to determine if, when, and under what conditions Unit No.1 of the Three Mile Island Nuclear Generating Station, which is partially owned by Jersey Central Power and Light Company, may be safely restarted. In accord with our statutory responsibility and as part of these proceedings, we are actively monitoring the financial condition of General Public Utilities Corporation and its subsidiaries as it relates to their ability to safely operate and shut down, if necessary, Unit No.1 of the Three Mile Island Nuclear Generating Station. This monitoring includes our closely follow-ing the progress and result of any state proceedings which affect their financial condition. At this point, all indications are that some of the foremost authorities in finance will appear at these proceedings, p
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In addition, any transfer of ownership of a nuclear facility requires prior approval by this Commission. Such approval is contingent upon a showing by the proposed new owner that it is financially qualified to safely operate and, if necessary, shut down the facility.
Thank you again for your concerns.
Kindly be assured that they will be considered during our ongoing evaluation of General Public Utilities Corp-c oration and its subsidiaries.
l Sincerely, crthaltiped hf p ' ' ma i
Harold R. Denton, Director Office of Nuclear Reactor Regulation l
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