ML19317H411
| ML19317H411 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 05/30/1980 |
| From: | Herbein J Metropolitan Edison Co |
| To: | Harold Denton Office of Nuclear Reactor Regulation |
| References | |
| TLL-256, NUDOCS 8006050346 | |
| Download: ML19317H411 (3) | |
Text
h Metropolitan Edison Company M
Post Office Box 480 Middletown, Pennsylvan,a 17057 i
717 9444 041 Writer's Direct Dial Number May 30, 1980 TLL 256 Office of Nuclear Reactor Regulation Attn: Harold R. Denton, Director U
C. Nuclear Re;;ulatory Commission Washington, D.C.
20555
Dear Sir:
Three Mile Island Nuclear Station, Units I and II (TMI-1 and TMI-2)
Operating License Nos. DPR-50 and DPR-73 Docket Nos. 50-289 and 50-320 Financia] Protection The.following information is submitted in response to your letter of April 8, 1980 concerning financial protection.
We have been informed by our insurance broker, Marsh and McLennan, that the nuclear liability insurance pools have advised the NRC that they have received approval to provide an additional $20 million primary insurance for TMI-II as well as reiastate approximately $2.5 million that has been expended for claims and claims expenses.
We are enclosing a letter from Marsh and McLennan, advising that they have used all their efforts to obtain nuclear liability insurance for TMI-II and that none is available other than that offered by the nuclear insurance pools.
In view of this, we trust that the NRC will accept the additional insurance being provided by the pools as evidence that TMI-II is in compliance with NRC regulations under Section 170 of the Act pertaining to evidence of financial protection.
Sincerely, g
(C A A'~
J. G. Herbein Vice President TMI-I JGH:LWH: hah Enclosure THIS DOCUMENT CONTAINS I sal POOR QUAUTY PAGES cc:
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S 8006050396 Me:rocottan Ed: son Compar 4 a Memcer of the Generai Puttc Ut ht es System
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May 27, 1980 Mr. Harry Gerety Manager - Insurance & Claims GPU Service Corp.
100 Interpace Parkway parsippany, N.J. 07054 i
W9fMimiNm MirdW 15 95 Three Mile Island - Financial Protection I
-Jmles T. Bdman
.,, rws,m Dear Mr. Garecy.
Marsh & McLennan has attempted to determine the extent and cost of available insurance capacity to fulfill the Nuclear P.egulatory Cocaission's financial protection requirement for Three Mile Island Nuclear Station Unit 2.
Every major insurer, both American and foreign, was contacted as well as a representative cross-section of lesser markets. Markets were selected with careful attention to their financial strength and the likelihood that they would be capable of standing behind a long term.
commitment to a form of insurance in which ultimate liabi-lities may take many years to mature.
Insurers were asked to consider providing coverage as broad as that usually afforded by the Pools as well as on a basis of supple-menting the more limited coverage approach that the Pools have proposed.
Our investigations revealed that virtually all insurers which participate in the American Pools were unwilling to make their capacity available through.any other mechanis=.
Those insurers who do not participate in tha American Pools do not do so either because they are ineligible or because they have made underwriting or management decisions not to insure the nuclear hazard.
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In those few instances where-insurers expressed any interest at all in providing cspacity, it was on the basis of exor-bitant premiums or narrower coverage than that proposed by the Pools.
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