ML19341C026
| ML19341C026 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 02/11/1981 |
| From: | Ahearne J NRC COMMISSION (OCM) |
| To: | Moffett T HOUSE OF REP., GOVERNMENT OPERATIONS |
| Shared Package | |
| ML19341C027 | List: |
| References | |
| NUDOCS 8102280454 | |
| Download: ML19341C026 (4) | |
Text
[
N UNITED STATES
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- 1 NUCLEAR REGULATORY COMMISSION sk. '
j WASHINGTON, D. C. 20555 h
5 s,
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February 11, 1981 CHAtRMAN C0w:ISSION CORRES
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The Honorable Toby Moffett, Chairman N
,D Subcommittee on Energy, Environment and 3
Natural Resources 2y pE Committee on Gcvernment Operations BgO ['g)
United States House of Representatives (44
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Washington, DC 20515 2
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Dear Mr. Chainnan:
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understand that my staff has already been in contact with yo
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you requested in your January 6,1981 letter, to arrange a meeting to discuss the health and safety implications of distributing the costs arising from nuclear utility errors in construction and operation.
You also requested a response to several questions regarding discussions the NRC may have had with others on the issue of financial aid for the TMI-2 cleanup costs and what consideration the NRC has given to potential liability and resultant possible funding.
I am enclosing a list of the groups we have been in contact with concerning TMI cleanup financial issues. Our discussions have included the state of the licensee's financial condition, the potential consequences in case of licensee default and in some cases possible options to solve the various problems. The list includes government and private groups, and meetings in which NRC representatives were essentially observers.
In order to place these discussions in perspective, and aid your assessment of TMI cleanup financial options, I should point out the context in which the NRC has approached both the discussior.s and the ultimate question of who will pay for the cleanup.
The Commission has consistently taken the position that the issue of who should pay is outside our statutory authority. Our concern is restricted to ensuring the Lafe cleanup of TMI-2 and we have limited our attention on the financial issues to their impact on the safe cleanup. Our discussions in public meetings concerning the TMI cleanup, including those held with citizens in the area surrounding TMI, have reflected this position.
The NRC staff report which dealt with financial options and sources of funding, NUREG-0689, " Potential Impact of Licensee Default on Cleanup of TMI-2," did not attempt to address the question of how the cost of cleanup should be shared.
Its purpose pas to analyze the licensee's financial condition and identify potentiai iources of financing and management in the event the licensee proved unable to meet its cleanup responsibilities.
Our discussions with other institutions and concerned citizen groups on this subject have all had the same purposes -- to understand and monitor the licensee's financial condition and to have available contingency plans to ensure the safe completion of cleanup in the event of the licensee's inability to do so.
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I emphasize this point because I believe that the information obtained and disr.ussed by the NRC is aimed at ensuring the safe completion of the TMI cleanup. As we have purposely focused on the safety implica-tions of GPU's financial situation, our statements do not reflect an analysis of the overall equity of various financing options, nor do they reflect Commission judgments as to a preferred ultimate solution.
Since our discussions have been limited in this respect, they should be assessed accordingly.
In answer to your secend question regarding the consideration we have given to potential liability and possible payments, the only firm consideration we have given to such funding involves the $300 million in insurance payments that the licensee is assured of obtaining.
In terms of possible contributions from litigation, such as the suit against Babcock and Wilcox, we consider the outcome of such litigation to be so uncertain and far in the future as to be of little use for planning purposes.
If that situation were to change, we would of course take account of it.
I hope you find this information helpful and look forward to meeting with you.
i Since ely,
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j/ John F. Ahearne As stated e
9
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f;RC DISCUSSIONS CONCERfilfiG TMI FINAfiCIAL SITUATION Group TJRC Participants fiature of Discussions Shareholders None fione Creditors Reactor Regulation General discussion on finances Utility Finance staff with leading lenders to assess licensee's financial condition.
Insurers Reactor Regulation General discussions of licer.see Utility Finance staff insurance to assess funding availability.
Local Citizens Comnissioners and Series of meetings with TMI Staff local citizens and TMI Advisory Panel to discuss the cleanup in general.
Federal aid questions were discJssed.
Ratepayers or None Nor.e Consumers from Other Areas Babcock & Wilcox fione None PA. Public Chairman and General Separate discussions regarding Utility Counsel Bickwit, PUC rate decisions and NRC Commission Commissioner Bradford safety requirements.
and Staff Security and Staff Task Force on Financial options and sources Exchange Impact of PA. PUC of funding, including Federal Commission Decision aio, in event of licensee default.
Federal Energy Staff Task Force on Financial options and sources Regulatory impact of PA. PUC of funding, including Federal Commission Decision aid, in event of licensee default.
OMB Commission staff Cleanup in general, financial options and source of funding including Federal aid, in event of licensee default.
Economic Reactor Regulation Obtain information on sources Regulatory Utility Finance staff of funding used by the govern-Administration ment.
Group NRC Participants Nature of Discussions Environmental Reactor Regulation Obtain information on sources Protection Utility Financial staff of funding used by the govern-Agency ment.
U.S. Treasury Reactor Regulati;n Obtain information on sources Department Utility Finance staff of funding used by the govern-ment.
GAO Reactor Regulation Obtain information on GA0 Utility Finance staff report concerning GPU finances.
New Jersey Board Reactor Regulation Obtain information on NJBPU of Public utility Finance staff activities.
Utilities Edison Electric Reactor Regulation Obtain information on EEI Institute Utility Finance staff activities on insurance for replacement power.
Electric Power Reactor Regulation Obtain information on EPRI Research Utility Finance staff research support at TMI.
Institute PA Congressional Commission staff Financial options and sources Task Force (observers), TMI staff of funding, including Federal (Congressman and legal staff on aid.
Ertel) separate occasions GPU Commissioner Bradford and Separate meetings discussing (Mr. Dieckamp)
General Counsel Bickwit, cleanup in general.
Commissioner Gilinsky, Executive Director for Operations GPU Chsirman Ahearne and Meeting on January 29, 1981 (Mr. Dieckamp)
General Counsel Bickwit on cleanup of TMI-2.
GPU Reactor Regulation and Licensee financial condition.
Legal Staff
.