ML19350C387
| ML19350C387 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 02/05/1981 |
| From: | Kuhns W GENERAL PUBLIC UTILITIES CORP. |
| To: | AFFILIATION NOT ASSIGNED |
| References | |
| NUDOCS 8104010282 | |
| Download: ML19350C387 (3) | |
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The preliminary, year-end 19S0 fin'anA.secont! half of 19Sibgig@(,Q rova!to cid asui;s for GPil have just become N s
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- able. W:thou: wai:ing for the An-line will be received. In December we nud F.epo.-; mailing in 31 arch. I wanted again requested the NRC to :rea; to get these results ou:. to you, as well T3111 in the same manner as it has the as mem. ion some import. ant actions other seven react. ors of similar design.
underway : hat can impact the company We have asked that Unit 1 be allowed in 1951.
to return to service after the hearings are completed on issues unique to TSil-e The past year has been an extremely 1-but before completion of the hear-difficult one. The continuing omission ings on issues including not just T5111 of your dividends is certainly evidence but other nuclear plants around the of that. Financial indicators were down country. So far there has been no from the previous year, reflecting the response by the Commission to that re-severe effects of state and federal quest.
regulatory ac: ions in the wake of the Three hiile Island accident. Net income GPU's Financial Posture for 1950 was S21 million. compared to the 1979 figure of S96 million. Earnings e continue to struggle to maintain per share in 19S0 were 34 cents, com-gr solmcy in an environment of m-pared with S1.56 for 1979.
equate anc delayec rate regulation -
most notably m, Pennsylvania. I will The most significant factors affecting say more about the TS112 cleanup pro-earnincs were the removal bv the gr m a Lit later, out m the com. ext of regulators of the operating and capital rate-makm, g. i:',s important to note that
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costs of both of the nuclear units at Fr customers in Pennsylvama anc, Three Atile Island from the base rates hew Jersgy are not paying for the of GPU's coerating subsidiaries, and cleanup erfort with tnetr present rates.
the cessation of the Allowance for Tn, e S300 million of property damage in-surance that we had at the time of the Funds Used During Construction accident (the maximum available) has (AFUDC) on the Forked River project.
been paying for these costs and we have about S100 million of insurance Sales of elec:ricity in 1980 were 31.8 billion kilowat: hours, about l'~c below still available to pay for future cleanup 1979. Total revenues amounted to S1.8 costs. so it is pot the cleanup w, icn is n
billion. up S342 million or 23'~c from stripping GPL or, neeced cash and earn-ings. It is the actions of both the Penn-last year. Higher energ'v costs ac-counted for about 90c of that increase.
s.v1 vama anc New Jersey State Com-missions m (1) removing both TS11 units from rate base (on which we need TS11-1 to earn a return to pay for t.he costs or As of today. Nuclear Regulatory the money invested in these facilities)
Commission hearmgs on the resta-t of and (2) the elimination (from cos:s d
[S T a C U ni: I are continuing, with all in-recoverable from customersi of :he
$ i dica..:cns that i: will be we!! into :he operating and naintenance expenses 8104010b1ScG
P00R ORIGINAL related to Tail 1 and 2 that has created ment. However, when that requiremen:
our financial crisis. A!! of these costs is satisfied. the program will be limited continue and must be paid whether or by financial resources. The remaintn';
not the piants are running.
insurance of about $100 million will cover less than one year of full effort.
State Regulatory Reviews Three Sliie Island must be cleaned un We are asse.-ting vigorously before
- there is no choice about that. It is i$
th+. ate regulato y commissions in both the interests of the health and safety of Pennsyivania anc Sew Jersey that not only the area surrounding TSII but rates should be fixed at levels that will the country that this task be accom-reestablish the financialintegrity of the plished efficiently and expeditiously. Its System. Testimony in these pro-completion is important to the ceedings from those who oppose ade-availability of the nuclear option and quate rate relief suggests levels which accordingly to the energy posture of could only lead to insolvency. This at-this country.
titude ignores the independent studies and the conclusions of both state com-
"he prolongation or suspension of missions that bankruptcy is not a sensi-cleanup activities at Three Afile Island ble option. In summary, the outcome of willinevitabh increase the risk of some the rate cases pending in both Penn-unforeseen event which could lead to sylvania and New Jersey will be ex-the release of radioactive materials into tremely important to the continuing the atmosphere. If this were to occur, viability of the GPC System. These the ability of the nation to proceed with cases are scheduled to be decided the nuclear option would be seriously within the next two to three months.
impaired. Thus, there is a strong need to enable the cleanup _of Three Atile Program Cutbacks Island to proceed expeditiously. It is In the :.eantime. we are continuing also clear that solution of the accident to take substantial steps to surviv, this cleanp pro'olem calc. provice an ta extreme financial bm. d. It nas been portant national example for the n, and-h.ng of any similar events.
necessary to cut back drastically the expenditures for operating and The causes and extent of the accicent maintenance needs as well as to h.mit construction to only the most essential and its aftermath and the magnitude of items. In that regard, we have cancellec, the task of the cleanup deserves and re-quires a sharing of.the burdens of the tne r orked River nuclear plant m.N.ew Jersey and are delaying the start of -
cleanup among more than the construction by two years of a coal--
customers and investors of tne GPU nrec plant at the Sewr rd Station m dystem..s. n equitable solution requires tne fm.ancial participation of the fec.eral Pennsvivam.a resulting in a completion cate or 1959.
and state governments' and the entire nuclear power industry.
TS112 Cleanup We at GPU have been working hard The current rate of progress on the not only to provide the detailed cleanup at TAII is negligible, limited by technical and financial information re-reculatorv proceedings on a Pro-quired to develop such a broad support g[ammatic Environmental Impact State-prog am, but also to bring together the C'
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P00RBRMli interests of the s'everal various par *.ies The months ahead will con.inue to be involved. including regula:. ors.
a critical period for GPU. We ap-legislators and industry represen-preciate the letters you have wriden to
- tives. Because the specific interes:.s regulators. legislators and other of-and concerns of the various g oups ficiais in support of the company's posi-citen differ. tnis will no: be easy.
tion in both :.he restart of Unit I and Nevertheless. we believe that the impor-the sharing of cie nup costs for T;*! 2.
tance of the problem and the benefit of We would encourage your continuin;:
t.i-re.cul:s te be obtained will produce expressions of such suppor:..
pcsitive action during 1931 in solving this most difficult financial problem.
Annual Meeting The 19S1 Annual leeting of GPU TMI Lawsuits shareholoers will oc(neld at 10:00 a in December we filed a S4 billion Thursday May 7. in the Strand Capito!
claim with the Nuclear Regulatory Performing Arts Center in York. Penn-Commission that centers on the NRC's sylvania. Detailed directions to this failure to pass along. to all nuclear Center will be sent to you with your plant operators. critical information proxy in April.
concerning a similar incident known to the NRC that occurred at a nuclear We have enclosed a return card with plant in Ohio 18 months prior to TMI this letter for you p fill in if you have
- information that would have changed your address to insure that prevented the accident at TMI. It also future mailings will be sent to your cor-details many other respects in which rect address.
the NRC did not perform its duties.
Some press reports of our act. ion i
against the NRC have suggested that Sincerelv.
we are seex:ng more regulation. That is simpiv not so. We assert that when ex-isting" regulation fails to meet those N/[
responsibilities it has and which those
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regulated are relying on it to perform.
it must be held accountable'. We intend William G. Kuhns to pursue _our claim vigorously in sup-port of our shareholders' and Chairman and customers' interests.
Ghief Executive Officer
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