ML19340F159

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Responds to to President Carter Expressing Concern Re Effect of TMI-2 Accident on Electricity Costs.No Statutory Authority Provides for Direct Federal Aid for Cleanup & Recovery Costs.W/O Supporting Documents
ML19340F159
Person / Time
Site: Crane 
Issue date: 01/07/1981
From: Harold Denton
Office of Nuclear Reactor Regulation
To: Backenstoes J
AFFILIATION NOT ASSIGNED
References
NUDOCS 8101210095
Download: ML19340F159 (3)


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Ms. Janet M. Backenstoes R. D. Il, 3ox 386-A Palmyra, Pennsylvania 17078 l

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Dear Ms. Backenstoes:

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This is in reply to your letter of September 18, 1980, to President Carter about the effect of the accident in March 1979 at Three Mile Island Unit 2 on the cost of electricity to customers of Metropolitan Edison Co. and the need for federal assistance.

Enclosed 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 Commission. This states that there is to statutory authority for any form 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 Commission (FERC) that would provide for a discount for Metropolitan Edison in purchasing power while the L I plant is down. This was subsequently approved by FERC.

As you know, the accident at im ee Mile Island Unit 2 also caused Unit 1 to be shut down until its safe operation can be assured and has necessitated the purchases of electric energy by Petropolitan Edison from other utilities. Enclosed is an item from a recent report of the U.S. Department of Energy that discusses these purchases.

Special arrangements were made with utilties outside the PJM power pool to provide lower-cost power on an "as-available" basis. This is said to have saved the cus-tomers of the GPU System, of which Metropolitan Edison is a part, over $114 million from the date of the TMI accident through May 1980, compared to prevailing contrac-tual arrangeents within the PJM power pool. However, at times during the summer heat wave in 1980. these special arrangements were cancelled to enable the supplying utilities to meet their own high demands for electric power.

The resumption of operation of Three '411e Island Unit 1 is the subject of a hearing by an Atomic Safety and Licensing Board of the Nuclear Regulatory Commission. That hearing started on October 15, 1980. The Commission has detemined that satisfac-tory completion of certain short-term 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 Commission has also determined that certain long-tem actions are required to be completed as P00RORBK1 I'* C ? )

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Ms. Janet M. Backenstoes promptly as practicable and that reasonable progress on the completion of such actions prior to restart is required in order to provide reasonable assurance that the facility can be operated safely over the long tenn. The Commission's primary commitment is to a fair and thorough hearing and decision. Given this overriding imperative, it is the Commission's expectation that the Board will conduct the proceeding expeditiously. The decision on resumption of operation will be made by the Commission after the hearing is completed.

Sincerely, CR'--m-my

_ H. '. ;.r.aa Harold R. Denton, Director Office of Nuclear Reactor Regulation

Enclosures:

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Ltr. of July 3, 1980 2.

Recent Report of the U.S. Department of Energy DISTRIBUTION Docket 50-320 NRC POR LPDR Tera NSIC HRDenton EGCase PFine GZech/TJCarter TMI R/F BSnyder P00R ORIGINAL.

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