ML19322C352

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Testimony of H Gerety Before PA Public Util Commission Re Met Ed Current Insurance Coverage & TMI-2 Incident
ML19322C352
Person / Time
Site: Crane 
Issue date: 01/16/1980
From: Gerety H
METROPOLITAN EDISON CO.
To:
Shared Package
ML19322C344 List:
References
TASK-TF, TASK-TMR PN-308, NUDOCS 8001160889
Download: ML19322C352 (7)
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Text

{{#Wiki_filter:. j i: ~ Exhibit No. (PN-308) FERC Docket No. ER78-494 l-I l l l t i i I ] ' Testimony and Exhibits of Mr. Harry Gerety I Before the Pennsylvania Public Utilities Con: mission in I Docket No. I-79040308 i 4 i h 9 I I p t i i w a M 8001160((f

a2c re/ renslac~ tx::.s:.:~ b. 2 - f ili:=ess: Ea--v Gere:v Pcge 1 of 5 Me::cpoli:a= Idisc= Cc=pa=y Pe==svivania Electric Cc._ a=v Resec=se to PUC Incuirv No. 5 of Acril 4 1979 L'hich Reads As Fellevs: 1 "S. Describe Me:-Ed's (Penelec's) applicable i= sura =ce coverage 1 i cur. ras:17 is affec: vich regard to the M -2 accide=:, 1= ter=s of i both the risk.s covered a=d the ex:a=: of liah111:7 i= dellars. Is there a righ: of subroga:1== or i=da '#1ca ic= u= der the policy or policias a=d agains: who=7 A::ach copias of the policias." Raseense l There are three basic i= sura =ca c=verages curre=:17 1: effec: vi h regard :o tha MI-2 accida==, na=aly: public 11abill:7, o=-si:a prey-ar:7 da= age, and workar's c =pensa:ic=.' ?C31.IC L.13'"* ~T i Two =ucima-1 d *111:7 pools, A=arica= Nu=laar !=surers and Marnal A::=ic E=e: gy Liah d =7 U=da.u.:.:ars (c=pias of :he policias are attached), provide a= aggregata of $140 d== i= Ad-d-pa_.y 1:ahd' dry enverage. The poide'as pr= tac: o=17 mgs'9== " bodily injury" and "properry da= age", def1=ed is the policias, caused by the nuclear e=argy ha:ard, which as is defi=ed in par: as the "radicactive, : xic, explosive or other hazar-1 dous pr=per:das of =uclear =aterial." The i=sureds u= der the policias are Ma:: pol.dd :a= Edisc= Co=pa=7, Jersey Ce:ral Power & Ligh: Cc=ma=7 a=d Pe==sylva=ia Elec:rd_: Cc=pa=y a=d "a=y other perse= or crgn=iza:1c= wi:h respec: :o his legal respe=- sib 41d ry for da= ages because of bodily i= jury or preparty da= age caused by the =uclear energy ha ard", excep: :he Uni:ad Statas of A= erica or N Oi3((Thj$ $ a=y of 1:s age =cias. g', J w! N N'I A" O% i Mi La ( l

i ' 'n,p ne policias specifically exclude property da= age to any pr:perty at the ~hree.w.ile Island facility "other :has aircraf:, va:ercraf: or vehicles lice = sed f=r highway use, provided such aircraf:, va:arcraf: i a:. vehicles are not used in ecusectic: vi d the operar.icn of the ~ fard'd=y." While the i=surers are subrogated to all de insureds' rish:s of

recovery, veid righ: cf subroga:1ce =ay be waived by the insureds, the issue of subrega 1=n and vaiver thereof ul:i=ately has no effec:

because of de i=clusic= as. insureds under the policy of "a=7 other persc= or orga=isa:ica" as aforesaid. I= addi:1==, the insurers pur-sua=: to de policias specifically valve any rig".: cf subroga:ic= ac-quired agains: the Uni:ed Statas of A= erica or any of its age cias-by ; ease: cf a=y pay =a== under the poid d as. Is excess of the private insurance desc-ibed above is a sec=ndary lay er of f d -= d = ' protec:1== is de a=ou== cf $225 d ' d an. ?' = is a fo:= cf reciprocal self 1=surance'whereby each u d'd:7 licensed :s operate a reac:or vi h a rz:ed capaci:7 of 100,000 elac::1 cal kilova::s or more, is obligated := pay up to $5 ** "'an per each such reme==r per nur' ear incident. A +d-d level of public pre ectics is prrvided through an Ag.ee=a=: of inde d#icaci== vt:h he Federal gover= ment 1: I the a=eu== of $85 mi" ' =. nese :ve excess layers pr vida a scope of coverage s d ' =- := che pri=ary insurance. d In the event of a nuclear inciden: i=velvi=g da= ages is excess of the aggregata liabdidh of $560 million, :he Uni ad Sta:es Congress s is statutorily required to " thoroughly reviev the partic.dar incider: and vd11 take whatever ac:fon is deemed necessary a=d apprcpriata to l protect the public fro = the consequences of a disaster of such mag:1-

of All tha forcscing is co prescribed by th3 A:==1c I=2rgy Ac: h d A954, as a===ded, and the regula:1==s pre:=:1gstad t ereun er. ON-5! I PROPE?. T DAMAOI 0=-51:a property cov e age is u=dervri::a= joi=:17 by A=arica: Nucisar#1=surers and Lu=ber=ans Murnal Casual:7 Cc=pa=7 which is rainsured 100 perce= by Mu:ual A:o dn Inergy Rai=surance Fool (copies of the policias are a:: ached) i= a= aggrega:a a=ou== of $300 illic=. d-aras: 1: TEI No. 2 of Meerepoli:a= 32cause of the undividad ovmeship and Jersey Idisc= Cc=pa=7 - 50~., Fe==sylvz=ia Ilec:ric Cc=pany - 25 s==u== Me::= poli:a= C w =y - 25%, :he - ' Ca=rral ?over In Ligh: a expec: :o Idisc= Cc=pa=y and Pe==sylva=1a Ilac:ric Cc=ma=7 each ca: and $ 75 ' d " d -=, respec-

cover under the policias is $150 d d ~=

d-=ura-te aga1=s: radio-The policias pr=vida ac:ual cash v.-lue tively. ec:1re c==~ d-ati== and all c:he risks of direc: physical losa. They 'ecuever, c =nensacie also cover debris re=cval and dac==- d-=:1c=. co-sered. "he f or loss resul:ing fr== i=:arr.:ptic= of business is =c: Ho. 2 is $100,000 vi:h a separata deductible pr=visic= applicabla em WT deduc_ible of $750,000 applicabla :o the :=rbi=e, provided, i= the eve== of insurance under chase de loss exceeds fif 7 par==== of the m policias, the ' deductibles shall =ot be appliad. The coverage undar the policias excludes, a=c=g c:her c' d"gs, the of m=le g good a=y fauley work =anship, =a erial, c==strue:ic= or d cos Further, the policies do losses res"' d g therefr==. desig=, but =e: less which a c== rac:=r, =a=ufac:urer or supplier not insure agai=s: a=7 has agreed :o =aka good under of =achinery, equipme== or other preper:7 l []_]n~uuN l], p, a guara=:aa or warranty. Djf.,., h pu ]~Li$;2 i s

f The insureds are Me:repoli:a= Edise: Cc=pa=7, Jersey Cen:ral Power & Ligh: Cc=pany, Pe==sylvania Electric Co=pa=y and ec= trac: ors, subec=:rac:crs a=d sub-subec=:: actors as : heir i=:eres s may appear. The i=surers have a qualified right of subrega:ic=. The i=- surers pursuan: to the policias specifically vaive a=y rd-sh: of suc-rega:1cc acquired agains: a=7 parry fur =ish1=g se: rices, =aterials, par:s, or equip =es: i= cc==ec:1c= vi:h :he p i m-d g, cc=structics, =a1= e=a.=ce, opera:ics, or use of proper y ecvered by reasc= of a=y par =~: u= der the policy aris1=g ou: of a. 7 loss resul:1=g frc= the radicac:ive, c d, explosive or o:her hazardous p..,eer.ies of " source =a:erial", "special ="-lan- =aterial", or "by-prod.se: =a:erial". Fur _her, prior := a insa, the ureds =ay vaive, 1: vri:i=g, a=7 or d all right of racovery aga1=s: a=7 par y for icss occurring :s :he prep-erry covered. I =a=7 i=sra=cas the righ: of rec =very has been vaived with re-spec: := M No. 2 i= accordanea vi h :he general practice of all ued' d ies as part of :he negotiated ec=:racts with :had-suppliers a=d cc=:rac:crs as a cer'd rien of receiv1=g the necessary goods and ser-vices for the ec=strue:1c= and operatic = of =uclear power pla=:s. Le 4 suppliers and c== ac:crs generally require such vaivers because, i= co==ec:ic: vi h a nuclear fac :7, chair abd 'd :7 :o procure insurance d enverage :o protec: their interests is er:re=ely 'd d:ed. F I i i

'40RKI2!S COMPINSAC ON Metropoli:a= Idise Cc=pa=7 and Pe=sylva=1a Elec:ric C :::pa=y

==ployees are covered under insurance policies issued by Utili:1es M==ual Insurance Cc=pa=y. Se policies 7'-d:s are :hese i=pesed by sea:uta and :he policias fur her covers e=picyer's liabili:y wi:h a 11=1: of $500,000. Copy of these policies have act been i=- cluded, hevever, the sa=e vill be provided upe= request. e O s e ll iM!m e A XWh

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