ML19337A360
| ML19337A360 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 08/26/1980 |
| From: | Silver H Office of Nuclear Reactor Regulation |
| To: | Office of Nuclear Reactor Regulation |
| Shared Package | |
| ML19337A361 | List: |
| References | |
| NUDOCS 8009090602 | |
| Download: ML19337A360 (5) | |
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--NUCLEAR REGULATORY COMMISSION y
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. WASHINGTON, D. C. 20555 k....a [{
August!26, 1980 Dockets'Nos. 50-289 & 320-FACILITY:
Three Mile Island, Units Nos. 1 & 2 (TMI-1/2)
LICENSEE:'
Metropolitan Edison Company (Met Ed)
SUBJECT:
TMI-1 RESTART <-:GPU'S FINANCIAL-QUALIFICATIONS At GPU's request, a me'eting was held on August"14,1980~ at NRC' for the purpose of GPU-presenting its' financing plan over the next 10 years. Although the overall GPUl financial projections for the next 10 years were presented, the primary thrust'of the presentation related to financing the restart of TMI-l'and the' cleanup and restoration of TMI-2. Attendees were as follows:
NRCi H. dilver, D.. Muller, R. Wood, J. Saltzman, D. Brinkman, J. Roberts
-D. Swanson, M. Karlowicz, J. Petersen GPU:
.J. ' Graham,' T. Howson, G. Trowbridge, G. Seri ARC, Inc.-(for TMIA):
'W. Belmont The basis 'for GPU's presentation was a document entitled "GPU System-Financial Forecast Reflecting Revised Estimate of TMI-2 Clean-Up and Recovery -
August 14,'1980," a~ copy of which is_ enclosed. Mr. Graham, GPU Treasurer, was assisted by Mr. Howson in making-this presentation. Mr. Graham enumberated the fundamental underlying assumptions to GPU's base case financial ~ forecast. These included the following:
(1) the level of ratemaking will not exceed treatment granted the GPU subsidiaries since
~the accident;.-(2)' recovery of energy costs will be kept current; (3)
TMI-2 cleanup costs will not be allowed in revenues 'by the rate commissions;
-(4) the earned rate of return-is based on historical. returns; and (5) financing of the cost of the TMI-2 cleanup is the flexible item in the forecast.. ~GPU assumes that its priority responsibility is in providing serviceito its customers. This includes restart of TMI-l and required construction of_ new facilities 'during the TMI-2 cleanup and -restoration period. The Pennsylvania Public Utility Commission (PaPUC) and GPU are considering the possibility of GPU purchasing. capacity of other utilities' generating facilities.in lieu of ~ building its own facilities of like capacity.
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is GPU's financial forecast was cast in three alternative scenarios.
The
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differences between each alternative scenario or case are caused by fE differences in the assumptions underlying each case.
In the first or j[
base case, it was assumed that rate relief would be minimal (i.e., no 9;
more generous than it has been since the accident). Under the base 7
case, GPU projects a $455 million shortfall in funds needed to cleanup and restore TMI-2. Under these circumstances it assumes that such funds will be derived from some other source such as additional charges to
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customer, government, or industry assistance or litigation recoveries.
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lij In addition to the base case forecasts, GPU presented two alternative i
scenarios.
Under the first alternative, rate commissions would allow a portion of TMI-2 cleanup costs to be traated as an. expense and, therefore, g
E the shortfall would be recovered directly through revenues from customers.
j The second alternative assumes that allowec rates would generate adequate g
revenues to allow GPU to finance the shortfall projected for the base 9..
case.
i Mr. Graham and Mr. Howson presented the detailed assumptions and projections M
related to each of these cases and clarified a number of points in 5
response to NRC and TMIA questions. Additionally, Messrs. Graham and 5
Howson distributed copies of a GPU news release dated August 8,1980 addressing the revised cost estimate and scheduling of_the TMI-2 cleanup.
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To reconcile differing TMI-2 cleanup cost estimates that were reported by the media, a detailed cost sheet was provided to indicate the source s-T. '
of the cost data. This was based upon a revised TMI-2 cleanup cost i
estimate by Bechtel, which is expected to be filed soon with the NRC.
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b Harl Silver, Project Manager
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Oper -ing Reactors Branch #4 Division of Licensing
Enclosures:
1.
Financial Forecase 2.
GPU News Release 3.
Cost Sheet cc: w/ enclosure See next page o-e i
sn 1-Dr 1 er H.
Metropolitan Edistn Company 88j Dr v Oak Ridge Tennessee 37830 ccw/enclosura(s).
- Mr. Marvin I. Lewis Dr. Linda W. Little 6504 Bradford Terrace 5000 Hermitage Drive P,hiladelphia, Pennsylvania 19149 Raleigh, North Carolina 27612 Walter W. Cohen, Cons :mer Advocate Holly S. Eeck Department of Justice Anti-Nuclear Group Representing Strawberry Square,14th Floor York-Harrisburg, Pennsylvania 17127 245 W. Philadelphia Street York, Pennsylvania 17404 Robert L'. Knupp, Esq.
Assistant Solicitor John Levin, Esq.
Knupp and Andrews Pennsylvania Public Utilities Com.
P.O. Box P Box 3265 407 N. Front Street Harrisburg, Pennsylvania 17120 Harrisburg, Pennsylvania 17108 Jordan D. Cunningham, Esq.
John E. Minnich Chairman Fox, Farr and Cunningham Dauphin Co. Board of Comissioners 2320 North 2nd Street Dauphin County Courthouse Harrisburg, Pennsylvania 17110 Frcnt and Market Sts.
Harrisburg, Pennsylvania.17101 Theodore A. Adler, Esq.
WID0FF REAGER SELK0WITZ & ADLER o Atomic Safety and Licensing Appeal Board Post Office Box 1547 U.S. Nuclear Regulatory Commission Harrisburg, Pennsylvania 17105 Washington, D. C.
20555 Ms. Marjorie M. Aamodt Atomic Safety and Licensing Board Pan'.1 R.D. #5 U.S. Nuclear Regulatory Commission Coatesville, Pennsylvania 19320 Washington, D. C.
20555 Ms. Karen Sheldon Docketing and Service Section
$"St o
e N W' U.S. Nuclear Regulatory Commission Suite 506 Washington, D. C.
20555 Washington, D. C.
20006 Robert Q. Pol'ard Earl B. Hoffman 609 Montpelier Street Dauphin County. Comissioner Baltimore, Maryland 21218 Dauphin County Courthouse Front and Market Streets Harrisburg, Pennsylvania 17101
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Chauncey Kepford Judith H. Johnsrud Ms. Ellen R. Weiss, Esq.
Environmental Coalition on Nuclear Power Sheldon,.Harmon & Weiss 1725 I Street, N.W.
433 Orlando Avenue State College, Pennsylvania 16801 Wa ngton, D. C.
20006 Hs. Frieda Berryhill, Chairman Mr. Steven C. Sholly Coalition for Nuclear Power Plant 304 South Market Street Postponement Mechanicsburg, Pennsylvania 17055 2610 Grendon Drive Wilmington, Delaware 19808 Mr. Thomas Gerusky Mrs. Rhoda D. Carr Bureau of Radiation Protection 1402 Marene Drive Department of Environmental Resources P.O. Box 2063 Harrisburg, Pennsyivania 17109 Harrisburg, Pennsylvania 17120 e
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Metropolitan.Edisin Company Karin W. Carter, Esq.
505 Executive House Mr. G. - P. Miller-P. O. Box 2357 Mr. R. F. Wilson Harrisburg, Pennsylvania 17120 Mr. J. J. Barton Met po t Edison Company ora 1 arCap ta Building Middletown, Pennsylvania 17057
. Harrisburg, Pennsylvania 17120 G.
F'. Trowbridge, Esquire Dauphin County Office Emergency Shaw, Pi ttman, Potts &- Trowbridge Preparedness 1800 M Street,'N.W.
Court House, Roan 7 i
Washington, D. C.
20036 Front & Market Streets Harrisburg, Pennsylvania 17101 tir. E. G. Wallace Licensing Manager Department of Environmental Resources P r[e U
ATTN:
Director, Of fice of Radiological e
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Parsippany, New Jersey 07054 Post Office ox 2063 Harrisburg, Pennsylvania 17105 Pennsylvania Electric Company fir. R. W. Conrad Director, Technical Assessment Vice President, Generation Division l
1001 Broad Street Office of Radiation Programs Johnstown, Pennsylvania 15907 (AW-459)
U. S. Environmental Protection Agency Miss Mary V. Southard, Chabiaan Crystal Mall #2 Citizens for a Safe Enviro,1ent Arlington, Virginia 20460 Post Office Box 405 Harrisburg, Pennsylvania 17108 Mr. Robert B. Borsum Babcock & Wilcox Government Publications Section Nuclear Power Generation Division State Library of Pennsylvania Suite 420, 7735 Old Georgetown Road Box 1601 (Education Building)
Bethesda, Maryland 20014 Harrisburg, Pennsylvania 17126
- Ivan W. Smith, Esq.
Mr. David D. Maxwell, Chairman Atomic Safety & Licensing Board Panel Board of Supervisors U.S. Nuclear Regulatory Commission Londonderry Township Washington, D. C.
20555 RFD#1 - Geyers Church Road-tiiddletown, Pennsylvania 17057 Ms. Kathy McCaughin Three Mile Island Alert, Inc.
U. S. Environmental Protection Agency 23 South 21st Street Region III Office Harrisburg, Pennsylvania 17104 h
ATTN:
EIS COORDINATOR Curtis Building (Sixth Floor)
Mr. L. W. Harding 6th and Walnut Streets Supervisor of Licensing Philadelphia, Pennsylvania 19106 Metropolitan Edison Company P. O. Box 480 Metropolitan Edison Company i Middletown, Pennsylvania 17057 ATTN:
J. G. Herbein Vice President P. O. Box 542 Reading, Pennsylvania 19603 Ms. Jane Lee R.D. 3; Box 3521 Etters, Pennsylvania 17319 a
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l' MEET-ING
SUMMARY
' DISTRIBUTION 1
Licensee:
Mr. R. C. Arnold i
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- Copies.also'sent to those people on service.(cc) list for subject plant (s).
Docket File
. NRC PDR L PDR TERA NSIC ORB Rdq NRR Rdg HDenton ECase DEisenhut RPurple RTedesco TNovak.
Glainas RReid TIppolito SVarga DCrutchfield RAClark-ORB Project Manager Licensing Assistant OELD i
AE00 - JHeltemes IE-3 SShowe (PWR) or CThayer (BWR), IE i
i RFraley, ACRS (16)
Program Support Branch GZech J01shinski, NRC. Participants HSilver DMuller.
RWood JSaltzman DBrinkman JRoberts
.DSwanson MKarlowicz JPetersen-
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