ML19339C311

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Responds to to President Carter Re Financial Burden on Util Resulting from Mar 1979 Facility Accident. Statutory Authority Does Not Permit Direct Federal Financial Aid to Assist in Cleanup & Recovery Cost
ML19339C311
Person / Time
Site: Crane  Constellation icon.png
Issue date: 10/30/1980
From: Harold Denton
Office of Nuclear Reactor Regulation
To: Grable D
AFFILIATION NOT ASSIGNED
Shared Package
ML19339C312 List:
References
NUDOCS 8011180112
Download: ML19339C311 (3)


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NSIC E.- E Mr. Donald W. Grable TSB R/F T;

C 12 Vista Road PFine O

Wyomissing Hills, PA 19610 TCarter S

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Dear Mr. Grable:

ECase HDenton This is in reply to your letter of October 10, 1980 to the President about the financial burden on the Metropolitan Edison Company resG1 ting from the accident at Three Mile Island.

Attached is a copy of a letter of July 3,1980 from the Assistant to the President for Domestic Affairs and Policy to the Chairman of the Pennsylvania Public Utility Consd ssion. This states that there is no statutory authoHty for any fom of direct federal financial aid to assist in clean-up and recovery costs associated with the accident at Three Mile Island.

It does refer to proceedings at the Federal Energy Regulatory Comedssion that would provide for a discount for Metropolitan Edison in purchasing poner while the TMI plant is down.

As m know, the accident at Three Mile Island Unit 2 also caused Unit 1 to be shut down until its safe operation can be assured. The resusiption o' operation of Unit 1 is the subject of a hearing by an Atomic Safety and Licensing Board of the Nuclear Regulatory Commission. That heaMng started on October 15,1980.

The Comnission has detemined that satisfactory completion of certain short-tem actions and resolution of various specified concerns are required to provide reasonable assurance that the facility can be operated without endangering the health and safety of the public. The Ccussission has also datamined that certain long-term actions are required to be completed u promptly as practicable and that reasonable progress on the scepletion of such actions pHor to restart is required in order to provide reasonable assurance that the facility can be opera-tad safely over the long ters.

The Commission's primary commitment is to a fair and thorough hearing and decision on the restart of TMI Unit 1.

Given this overriding imperative, it H the Com-mission's expectation that the Board will conduct the proceeding expeditiously.

The decision on resumption of operation will be made by the Comnission after the hearing is completed.

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Harold R. Denton, Director Office of Nuclear Reactor Regulation

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%.i 20VE ANMENT aQiNTING OFFtCE; 1979 289 369

THE WHITE HOUSE WAsHlNG?oN July 3a 1980 1

Dear Madam Chair =an:

The Presiden: has asked me to respond to your recent letter regarding federal financial assistance relative to clean-up j

and recovery ccsts associated with 'he March 29, 1979, accident at the Three Mile Island nuclear generating plant.

In respending to this request, we have carefully censidered the peines raised in your letter suggesting federal respcas-ibility for sharing the costs of this accident with the cizi: ens of Pennsylvania..

In the first instance, there is no statutory authcrity for any form of direct financial aid to assist in clean-up and The Administration has hcwever taken steps recovery costs.

to provide for the monitoring of TMI-2 through effer s by the EPA.

The Department of Energy will be examining the core and the s tudying of the effects of the accident en critical plants ccmponents upon clean-up.

Your letter notes the financial involvement of the Federal Government in the early stages of the ecmmerciali:ation of nuclear pcwer including the Price Anderson Act and its renewal.

This history indeed exists ; however, once private indusury was capable and willing to support the ecmmercial deployment of nuclear reactors for the generation of elec-tricity,. the principal role of the Federal Government became one of enforcing the regulatory previsiens of the Atemic Energy Act.

The Ad inistration is closely folicwing the progress of the preceedings you outlined currently underway before your ec= mission; the ccmpanion case in New Jersey; and related proceedings at the Federal Energy-Regulatory Cc= mission..

for Met Ed in The FERC action would provide for a discount purchasing power while the TMI plant is down.

In additien, the Nuclear Regulatory Cc= mission is conducting a licensing proceeding to decide whether cr not TMI-l should be allcwed to resume operation.

We also understand that you have recently taken action which will allow Met Ed to remain solvent until a more detailed censideration of the case can be made.

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The Administration shares your coacern about this accident and its potential impact on the i 2 ure of the utility industry.

Within the limits of our legal authority, we believe that federal assistance at '"M has been sensitive to the needs of the State and the affected cc== unity.

Please be assured that we will continue to help in any way that is apprcpriace.

Sincerely, SIGNID 3Y Stuart

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Stuart E. 11: ens tat Assistant to the President For Dcmestic Affairs and Policy Ms. Susan M. Sharm Chairman Pennsylvania Public Utility Cc= mission Cc=monwealth of Pennsylvania Harrisburg, Pennsylvania' 17120 D T

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