ML19331B386
| ML19331B386 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 07/25/1980 |
| From: | Reid R Office of Nuclear Reactor Regulation |
| To: | Moreland L AFFILIATION NOT ASSIGNED |
| References | |
| NUDOCS 8008120006 | |
| Download: ML19331B386 (5) | |
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UNITED STATES
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NUCLEAR REGULATORY. COMMISSION 3
E WASHINGTON, D. C. 20555 a
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J Dottet No. 50-289 I hulN 25500 Ms. Leah Moreland R.D. 1 THIS DOCUMENT CONTAINS Boiling Springs, PA 17007 P00R QUAllTY PAGES
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Dear Ms. Moreland:
I am writing in response to your recent letter to President Carter which was forwarded to the Nuclear Regulatory Comission (NRC).
In your corre-spondence, you expressed concerns regarding the delay in placing Three Mile Islano Nuclear Station, Unit No.1, back into service, and the rate structure prescribed for the Metropolitan Edison Cogany.
The NRC has taken a number of actions with respect to all nuclear p)ower plants as a result of the TMI incident. All Babcock & Wilcox (B&W pressurized water reactors like those at TMI were shut down and the licensees of each plant were instructed to provide us with additional information about their facilities in light of the TMI incident.
After review of the infor-mation provided, orders were issued to the licensees that required them to make immediate plant modifications, to provide additional cperator training, and to reverse certain operating procedures. Additional long-term actions were ordered to further upgrade certain plant systems, ar.d operator training and procedures. All of these plants, have complied with the orders and have been permitted to resume operation (except of course the TMI plant).
As you may be aware, the NRC has ordered that a public hearing be conducted to determine whether the facility should be operated and, if so, under what conditions.
The public hearing is scheduled to begin this fall.
During the hearing, the technical issues appropriate to assure public health and safety will be addressed. The NRC staff is currently involved in the on-going review of technical information concerning the restart of Unit 1.
Based upon the current status of the proceedings, the development of a record on which the NRC can make a decision regarding restart is not expected before the early part of 1981.
The Pennsylvania Public Utility Comission (PUC) issued on May 23, 1980, a sequel to the PUC's June 19, 1979 Order regarding the allocation of the financial burden resulting frcm the March 28, 1979 accident at Three Mile Island Nuclear Station, Unit No. 2.
The following excerpt from the May 23, 1979 Order may be of interest.
6 800812OM b H
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Ms. Leah Moreland,
"The basic conclusion of the Commission in this crder is that Met Ed should continue to operate as a public utility.
The Comission will provide Met Ed the means of financial rehabilitation.
Mcwever, we will write no blank checks on its ratepayers. We find that TMI-1 is no longer used and useful and that the base rates of both Met Ed and Penelec should be reduced. This crder, with its provisions fer a fully current recovery of energy costs and an accelerated amortization of deferred energy costs provides an adequate framework for Met Ed's recovery. Respondent cust convince its bank creditors that it has the will and the ability to rehabilitate itself.
Above all, Met Ed cust demonstrate cander and a willingness to address its problems and the initiative and ability to find solutions to those problems. The very real fears and concerns of its customers and neighbcrs must be allayed.
Met Ed's cost must be reduced through load management and conservation-inducing rate structure change. Met Ed cust aggressively pursue the return to service of TMI-1 or an early decision en its conversien to the use of an alternative fuel.
If these things are done, the Ccmission is confident that Met Ed will not only survive but will regain its financial health.
Finally, we emphasize that this order does not end our regulatory concern. The management investigation of the GPU Cocoanies at Docket No. I-79080320 continues.
Further, we will continue to closely moniter the operations of Met Ed, Penelee and the GPU Comanies to assure the continued provision of safe, adequate and reliable service to Pennsylvania ratepayers at reasonable rates."
While we are, of course, concerned abcut financial impacts on consumers, the NRC's primary responsibility is the assurance of public health and safety. State public utility comissions and the Federal Energy Regulatory Comission have primary responsibility regarding the financial aspects of electric pcwer generation.
Your connents and interest in these matters are appreciated.
Sincerely,
../
j h-R'$beitW.'Reid, Chief 0:erating Reactors Branch f4 Division of Licensing e
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