ML19338D233
| ML19338D233 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 07/25/1980 |
| From: | Reid R Office of Nuclear Reactor Regulation |
| To: | Albert G AFFILIATION NOT ASSIGNED |
| Shared Package | |
| ML19338D234 | List: |
| References | |
| NUDOCS 8009220201 | |
| Download: ML19338D233 (2) | |
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Dock et - No. ' 50-289 Mr. George Albert-1621 N. 7th Street Lebanon,' Pennsylvania.17042
Dear Mr. Albert:
'I.~am writing in response 150 your recerit letter to President' Carter which;
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was forwarded to the Nuclear Regulatory Commission (NRC).
In your corre-spondence, you expressed concerns regarding the delay in placing Three Mile Island Nuclear Station, Unit _No.1, back into service, 'and the rate
. structure prescribed for the Metropolitan Tdison Conpany.
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 concernifig 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 from 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.
"The basic conclusion of-the Commission in this order is that Met Ed should continue to operate-as a public utility. The Comission will provide Met Ed the means of financial rehabilitation. 'However,'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 Penelee should
. be reduced. This order, with its provisions-for 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 must.
. convince f;s bank creditors that it has the will and the ability to..
rehabilitate itself..
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GAbove'all,' Met Ed must demonstrate candor and a willingness to address cits problems. and the1 initiative and ability to find solutions to thosec
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problems. ;The very real fears and concerns of. its customers and neighbors; i
- must be allayed. :. Met Ed's cost must be reduced through~ load management
.and conservation-inducing rate. structure. change.
Met Ed must aggressively
' pursue _ the return :to service of TMI-1 or ;an early decision on its conversio'n
-to the use"of ~an alternative-fuel. ~If' these things are done, the Commission fis, confident that' Met Ed will'notionly survive.but will' regain its financial
' health.
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2 Finally, we emphasize that this order does not end cur. regulatory concern. The management investigation of the GPU Cogantes at Docket' No. I-79080320 continues.
Further, we will continue to closely monitor
.the operations of Met Ed, Penelec and the GPU Coganies to assure the
. continued provision of safe, adequate and reliable service to Pennsylvania ratepayers at reasonable rates."
While we are, of. course, concerned about financial igacts 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 power generation.
. Your coninents and interest in these matters are appreciated.
Sincerely.
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Robert W. Reid, Chief Operating Reactors Branch #4 Division of Licensing s
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