ML19318C110
| ML19318C110 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 06/13/1980 |
| From: | Saltzman J Office of Nuclear Reactor Regulation |
| To: | Herbein J METROPOLITAN EDISON CO. |
| References | |
| NUDOCS 8006300676 | |
| Download: ML19318C110 (2) | |
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UNITED STATES 8
NUCLEAR REGULATORY COMMISSION o
WASHINGTON, D. C. 20555 5
June 13,1980 "5T k*****/
Docket Nos. 50-289 320 4
Mr. J. G. Herbein Vice President Metropolitan Edison Company P. O. Box 480 Middletown, PA 17057
Dear Mr. Herbein:
We have received your letter of May 30, 1980 to Harold Denton concerning compliance with financial protection requirements for Three Mile Island Unit 2.
Although the Marsh and McLennan letter states that the only adequate insurance available would be that provided by the' insurance pools, there are still a number of questions that must be answered about the insurance endorsement and about alternatives other than insurance that may be available.
First, since we have not as yet received a copy of the endorsement providing the additional $20 million, we cannot determine whether this endorsement fully complies with our regulations. We trust that you will provide us with the endorsement as soon as it becomes available.
We understand, however, from the pools that this supplemental limit endorse-ment would apply only where a new accident at Unit 2 were declared an
" extraordinary nuclear occurrence" (EN0). While we understand the reasons for the pools' insistence on this limiting condition, the endorsement could be viewed as providing the public with less protection at Unit 2 than at any other reactor in the country (i.e., with respect to possible further accidents that are not extraordinary nuclear occurrer es but are in excess of $140 million).
=l In our letters of January 29, 1980 and April 8, 1980, we indicated that j
primary financial protection could be provided through insurance or some i
other form of third party guarantee.
In view of the fact that the 4
l supplemental insurance endorsement contains the ENO qualification to i
coverage we would like information on whether alternatives other than insurance have been investigated and what the results of your investigation were.
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l80.063 00 5 7/s 1
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b p*6 Mr. J. G. Herbein June 13,1980 l
What the staff must determine, based largely on information that you provide, is whether the insurance policies proposed to be made available by you from the pools provide the maximum protection to the public that is available from private sources or whether financial,'rotection in some other form is more appropriate. We hope that your reply will furnish a fully-developed discussion on why, in the opinion of Metropolitan Edison, the proposed policies from the ;,ools should be accepted by the Commission in meeting the financial protection requirements of its regulations.
We would be pleased to discuss any questions you may have so that we can satisfactorily resolve this problem at the earliest possible time.
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Jerome Saltzman, Chief Utility Finance Branc Division of Engineer g Office of Nuclear Reactor Regulation cc: Harry Gerety, GPU O
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