ML19338D241
| ML19338D241 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 07/10/1980 |
| From: | Reid R Office of Nuclear Reactor Regulation |
| To: | Wirth L AFFILIATION NOT ASSIGNED |
| References | |
| NUDOCS 8009220205 | |
| Download: ML19338D241 (2) | |
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UNITED STATES s
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NUCLEAR REGULATORY COMMISSION o
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WASHINGTON, D. C. 20555
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- mtf 1015m Mr. Louis F. Wirth, Jr.
1001 Holyrood Drive Midland, Michigan 48640
Dear Mr. Wirth:
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 Island Nuclear Station, Unit No.1, back into service, and the rate structure prescribed for the Metropolitan Edison Company.
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 cart 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 Comission 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 wili 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 craer, 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 its bank creditors that it has the will and the ability to rehabilitate itself.
Above_all, Met Ed must demonstrate candor 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 neighbors 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 conversion to the use of an alternative fuel.
If these things are done, the Comission is confident that Met Ed will not only survive but will regain its financial health.
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,e Finally', we emphasize that this order does not end our regulatory.
concern. ' The management. investigation of the GPU Coganies at Docket No. I-79080320 continues.
Further, we will continue to closely monitor the operations of Met Ed, Penelec and the GPU Comantes.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 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 power generation.
The former Atomic' Energy Comission (AEC) had-a Congressional mandate to develop ~~and promote nuclear energy. When the AEC was abolished in 1974, the NRC was created by. Congress for the sole purpose of regulating.the comercial production of nuclear energy. The _U. S. Department of Energy.
(DOE) is now responsible for the Federal Government's nuclear research and development activities. Consequently, comments and questions about the future of this energy source should be directed to that agency.
Your comments and interest in these matters are appreciated.
Sincerely,
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Robert W. Reid, Chief Operating Reactors Branch #4 Division of-Licensing W
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1001 Holyrood Dr.
Midland, Michigan 48640 March 23, 1980 The President of The United States Washington, D.C.
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Dear Mr.1 President:
'i Subject' : Treatment of Three Mile. Island ( TMI) "
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I:am writin anyingl.55g'g to you regarding',Piib11e Utiilities~CorpoI sti6n1(GPU).
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the tragedy of.TMI and the accomp-edf_.Mf,f,'th{. Gene ral
~I am also writing _regarding_the' inevitable tragedy of the UnTted States of America.
TheLcircumstances affecting TMI and GPU and-the USofA are really not very far removed.
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As a stockholder-.of...GPU.'an'd.also,a,very concerned. citizen, I am struggling to3 understand how we-have allowed our elected officials and their - appointees create a regulatory : climate and a "no risk" complex that have contributed 'so greatly to the sickn ss that' has engulfed ~ our once great nation. Our_20 percent. inflation rate and.:he_ne'ar.bankrup.tcy of GPU are' caused,to a.large extent by ~
the Uni'ted S,ta_tes government; including.deficet spending, excessive pirritihgLo~f money.and over regulation in all areas of energy.
This leads ito ^ indecision and to situations where it is: easier to import oil than-it is to produce domestic oil and other domestic energy-base.-
The financial penalties imposed on GPU by unreasonable and almost unbelievable decisions and delays by the various regulatory' bodies
'in starting TMIL#1 are devastating.
The inaction of the Pennsylvan-nia - and New Jersey rate; comrgisions in.IstSElish'ing Tequi"t'able... rates, o
for GPU is totally ~irr_esonsible.
The customers of GPU cannot ex-pect to--c57tt'IMIe"t~o [ay the low-power rates ' made possible by nuc-
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lear-power.while protesting 1its use and preventing by legal polit-ical~,oor through biasedimedia'means, the operation of-TMI #1 and the cleanup of the mess at TMI #2.
.The NRC seems helplessLand certainly needs your. support.
Each day
.that TMI #1 does not operatefrequires 40,000 barrels of imported o il~.
lThere are 'several other. nuclear power plants now idled' or near completion. Each.could if-operating replace 40-50,000 barrels
- of cil;per day of' operation.. The concerns of the troubled utilit :
. ies.are:being ignored by!your administration, the Congress andL many.offtheLState1 governments.
Investment advisors now state that utilityTstocks,;once'the securityfof widows and orphans, are not; under todayst regulacry climate-considered safe investments.
Un,
fortionatly, those of 'us _ with -GPU stock have 'now lost all; income
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arom;cividendsiandrabout three' fourths of the-asset value.
The 1
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users;of'GPU power;are enjoying lower? rates at the expense of the-2stockholders.~
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'You'r; administration ~.and appointees,:alongxwith the. Congress,;must T;<
Estop looking for? simple : solutions to ' difficult problems.
.There -
- are : no z quick '~ answers.. 'Butsthere are~ intelligent solutions to be
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farrived,at by:.the best judgements of our: financial community, our 1
engineeringfcommunity,four scientific community.and our political' community. jJudgementstwill.-produce intelligent solutions _that'will include _ calculated risks.
.The.."no risk" philosophy has'to be.
moderated toLa considerable extent ifJwe are'to survive.
The dis-
_ play;ofiemotion;this~ week,in the fire: hall.at TMI1regardingithe NRC plan"to release'amall amounts'of krypton' clearly demonstrates the need'for better understanding ~of complex. technologies by our citizens.
Mr. President, it is time - for you and. the NRC o to get our nuclear power. plants' operating.
It is. time for State regulators ~of. rates, and other regulatory bodies,.tofrestore a more healthy investment climate..The cost of' power plants, nuclear and coal,.must not be allowed to.escallate out of control _ due to design changes and de-
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-lays' imposed'by regulators, intervenors and court actions.
Once a-
-design'is. committed,_ construction should proceed unhindered.
If i
we. don't need_a plant, lets decide this before hard to raise and expensive capital is committed.
Other counties are putting us to-1
-shame withftheir construction schedules,-constr6cting nuclear power plants in.6 years. - I mn sure you must be aware' that' France f
is building 36 units at the present time, on 6 year construction schedules..
When operating. these units will replace about 1,600,000 barrels of oil each operating day.
With fuel reprocessing and the breeder reactor it seems_that France will.soons shed itself of im-ported energy sources.
We have to take' our heads out of the sand.
Our local utility, Consumers Power Company, has Midland nuclear units'#1 and #2 under construction..They are victims of_ delays, one after another.
The original plan was for 1974 operation. 'It is now ~1980 and' they are now projected for about 1985, at a cost nearly: ten times the design estimate. !The irony of the Consumers
-situation-is that one of these units could be the worlds first nuclear _ fueled ~co-generation systems.
Thermal efficiency a'c its best for power and process use.
.I know you_ face insurmo.untable problems.
B_ut..you and..the Congress -
i must heJp to resolve _the_GPU situation.and. change the.inv.es.tment
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cri' matt 6r'thi~otiher utilities.
Installed power plants, operat-ing-or-idied-b?"r'sgulatifsTrspieMitt -one of the few viable links.in our energy supply chain.
The operation of1 nuclear power _ plants
.should.be a top priority in our. national' defense strategy.
sThank you for the attention you;can give this important subject.
I am sending:a copy of;this letter to my congressman and-officials of c
the States of Pennsylvania and New Jersey.
~ Sincerely;yours, f
uisc. : Wirth,;
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