ML19322C782

Requests IE Input Re Financial Qualifications of Applicant Prior to Issuance of CP or OL

ML19322C782
Person / Time
Site:	Crane
Issue date:	11/02/1978
From:	Skovholt D Office of Nuclear Reactor Regulation
To:	Thornburg H NRC OFFICE OF INSPECTION & ENFORCEMENT (IE)
Shared Package
ML19322C780	List: ML19322C779 ML19322C781 ML19322C782 ML19322C783 ML19322C784 ML19322C785 ML19322C786 ML19322C787 ML19322C788 ML19322C789
References
TASK-TF, TASK-TMR NUDOCS 8001230550
Download: ML19322C782 (2)

Text

O-EfiCLOSURE 3 f[

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!iEl;0R/JiDU!! FOR: Ifarold D. Thornburg, Director, Division of teactor Construction Inspection, IE FR0ll:

lionald J. Skovbolt, Assistant Director for Quality Assurance and Operations, DPl SUCJECT:

REQUEST f0R IE IfiPUT RELATIVE TO Fili /liCIAL QUALIFI-j CATICWS STUDY 10 CFR 50 requires the fiRC staff to make a determination of the financial qualifications of an applicant prior ~to issuing a construction pemit or i

operating license.

This requirement stems from the Atomic Energy Act and reflects the belief that adequate financial resources is an issue irportant to the protection of public health and safety.

i In January 1978 the Cornission directed the staff to initiate a rulemaking proceeding in thich the factual, legal and policy aspects of the financial qualifications issue will be considered.

The scope of this inquiry trill involve both the criteria and methodology for making the financial qualifi-cations determination and the relevance of the financial qualifications issue to assurance of public health and safety. The staff has commenced this effort and, in response to a Federal Register notice, has received public cor.nents on the matter.

3,11 Several of the public comments fmn representatives of the utility industry M

trere in refutation of the presumption that lack of adequate finances may M

lead to " comer-cutting" which would adversely impact on assurance of public i

.y H health and safety.

Connenters contended that this was a specious argument g

in that h utility must rely on safe and reliable operation of a generating py station for many years, and it uould be contrary to its own self interests, M.H as tiell as to its public responsibilities, to cut corners or scrimp if this had adverse impact on safety or reliabilit;y.

In ordar to consider the experiences acouired by i:PC during the two decades of power reactor construction and operation, we request input fmm the Office of Inspection and Enforcement regarding the follouing nuestion:

In light

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of the inspection activities and consideration of construction deficiency l

reports and licensee event reports by IE, what instances, if any, have been i

discovered in which a utility. performed or authorized an action detrimental to public health and safety for the purpose of reducing expenditures?

j Citation of the particulars concerning each such action is requested.

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y liarold C. Thornburg NOV 2 1978 n

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should note that we are niare of instances in which supplicrs and contractors have tahcn such actions lut these would not be narnano to this study unicss i

i the utility had authorized them and thereby reduced its costs.

Further, pru-dance in fiscal manag2 ment by utilities and efforts to irprove efficiency would not be relevant unless they detracted from meting cor:aitmnts to I:PC, were in opposition to standard good practice or otherwise adversely imacted the assurance of public health and safety.

Since the financial qualifications requirerent has greater irpact at the CP stage, instances involving plant design, construction and initial testino are riost relevant; hoviever, identification of instances during plant o era-tions, maintenance and rodifications is also requested.

We would be happy to discuss this raat.ter if you desire.

In order to meet our schedule for reporting to the Commission, a response from IE by Ceccaber 15, 1978 is reouested.

viginal t.i:,aed by.

Donald J. Skovbolt Donald J. Skovholt Assistant Director for Quality i

Assurance and Operations Division of Proiect l'.anagement i

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P.. S. Boyd N. C. Poseley G. W. Reinmuth J. H. Sniezek J. C. Petersen I

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