ML20040D050
| ML20040D050 | |
| Person / Time | |
|---|---|
| Site: | Crane  |
| Issue date: | 01/08/1982 |
| From: | Travers W NRC |
| To: | NRC |
| Shared Package | |
| ML20040D051 | List: |
| References | |
| NUDOCS 8201300015 | |
| Download: ML20040D050 (7) | |
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UNITED STATES'
[y) y,.,g y NUCLEAR REGULATORY COMMISSION E
WASHINGTON. D. C. 20555 Q. Q i JAN O 9 1982 1
l hEMORANDUM FOR:
Panel Members FROM:
William D. Travers, Ph.D.
NRC Liaison
SUBJECT:
INFORMATION ON PROPOSALS FOR ASSURING TMI-2 CLEANUP FUNDS At the Panel's request, I am forwarding information on alternative plans for assuring that adequate funds will be provided to complete the TMI-2 cleanup, In addition to sumarizing and/or reproducing information presented to the e
Panel', I'have referenced appropriate discussions contained in the transcripts.
The Panel is currently co'nsidering two different approaches to making a recommendation on assuring adequate cleanup funding.
One course of action involves Panel support of a non-specific cost sharing plan.
In this case cost sharing would be endorsed "in principle" without-identifying any presently proposed plan.
The second alternative involves Panel consider-ation and support /non-support of the specifics of various plans which have been detailed before the Panel.
To 'da~te the Panel has 1:iassed 'one m'~ tion, "that the restart of TMI-1.should o
be based solely on the basis of technological health and safety consider-
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ations, and not economic can'sideratio~ns with respect to'the cleanup of TMI-2."
Two motions are currently tabled: ~ (1-)."We endorse the principle of cost sharing - cleanup funds shou ~d be obtained from the nuclear industry, the Federal Government, insurance funds, the Comonwealth of Pennsylvania, the State of New Jersey and GPU-Nuclear."
(2) "We believe that $190-million over a six' year peri ~od is~ justifie'd for 'ressarch and development grants from the Federal government."
The information contained here summarizes various financial assurance plans and suggestions made to the Panel.
Thornburoh Plan e 25% of the $760 million in unfunded cleanup costs is funded by industry.
e 25% is funded by the U.S. Government.
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e 32% is funded by GPU.
'c^@b e 4% is funded by Pennsylvania government.
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e 2% is funded by New Jersey government.
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Panel Members,
e $'90.million GPU insurance i.s directed tc cleanup, a 12% share.
- o. Cleanup fund is administered by a newly created non-profit National Energy Research Institute.
Additional Information:
e The Governor's representative, Mr. Banks, addressed the Panel regarding this plan 9/1/81 (p.42).
e A representative from EEI, Mr. Xearney, addressed the Panel 12/10/81 (p.80).
EEI is presently seeking Congressional action to require all utilities to support some cleanup funding through EEI.
e GPU's representative, Mr. Cherry, discussed Thornburgh's plan before the Panel 12/10/81 (p.54) and 9/1/81 (p.110).
- Chairman Shannaman's (PAPUC) representative, Ms. Nelson, appeared before the Panel 9/1/81 (p.121).
More recently the PAPUC appears to be leaning towards permitting ratepayers to support cleanup funding (see specifics in the enclosure).
Ertel Bill
- Establish a governmental entity, the Nuclear Property Insurance Corp.
- Establish an initial fund with initial loan financing by the U.S. Treasury
, of up to $100 million, e-Premiums paid from nuclear utilities totalling $150 million per year until at least a $750 million reserve is established,
$2 billion coverage for a single accident.
e The corporation pays 75% of' uninsured TMI-2' cleanup costs.
GPU repays l
50% of this over time. After the cleanup the corporation becomes l
a mutual insurance company owned by the utilities, e Rep. Ertel discussed his plan before' the Panel 9/1/81 (p.67).
Specter Bill e Essentially identical to Ertel Bill except that:
e It doesn't provide the Insurance Corporation with $100 million "up front" financing from the U.S. Treasury, e It wouldn't req'uire GPU to repay 50% of corporation provided funds.
e Senator Specter's representative, Mr. Wagner, discussed this plan briefly on 9/1/81 (p.64).
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Panel Members Hefnz Bill e Similar to the Ertel Bill except that:
e It doesn't authorize borrowing $100 million from the U.S. Treasury.
e The insurance fund would be administered by an existing Federal agency (i.e. DOE,NRC).
Goodlina Bill e Identical to Heinz Bill.
Recomendations by:
American Society of Utility. Investors 10/21/81 (p.21):
- Panel should urge that cleanup be expedited, o Panel should urge TMI-1 restart.
- Panel should endorse an insurance corporation per Irtel Bill.
Recommendations by:
TMI Alert 11/16/81 (p.3) and 12/10/81 (p.48):
- Cost-sharing is a good approach.
a Electric industry share should be $450 million.
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- Nuclear manufacturer's / share ' shou.ld be $100 million as a minimum.
e U.S. Government should bear a major share of the cost burden, something l
greater than TMIA's $25 million estimate.,
- N.J. and Maryland governments should contribute at least $15 million each.
- A 20% surcharge should be added to the Gross Receipts Tax on Pennsylvania utility revenues - from 1982 - 88.
This should generate $288 million, o GPU should divest itself of any assets unnecessary for power generation or distribution.
GPU's share should be about $300 million.
e Cleanup monies should be held in an account outside GPU control and used l
only for cleanup activities.
- Industry contributions should come from earnings, not through a rate structure.
e Any money obtained by GPU legal actions against NRC and B&W should go towards cleanup.
- GPU appoint 3 new members to its Board, one named by Gov. Thornburgh, one named by the Pennsylvania legislature and one named by citizens groups in south-central Pennsylvania.
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, Panel Members Recomendation by:
Lebannon Valley Chamber of Commerce 11/16/81 (p.24):
- Urges Panel to support Gav. Thornburgh's cost-sharing plan.
Recommendations by:
Lancaster Environmental Action Federation 12/10/81 (p.96):
o Cleanup should be first priority.
e A co6st-sharing plan, similar to Thornburgh's be established.
e Unit I should not be restarted until agreement is reached on Unit 2 funding and safety and environmental issues are resolved.
- TMI-2 radwaste should be removed and processed water should not be released to the Susquehanna.
Recomendations by:
TMI Public Interest Resource Center 10/21/81 (p.37):
- Cost-sharing is a good approach but linka'ge to TMI-1 restart should be eliminated.
e GPU should improve reliability and productivity of its coal-fired units j
to generate cleanup funds.
In addition to these proposals from elected officials and organizations, the Panel has also heard from individuals during the past several meetings.
Although most of the suggestions from these individuals are covered within
. the proposals already(listed, the following transcript references are9/1/81, p.1 offered:
Ms. Berger TMIPIRC (10/21/81, p.37), Mr. Algood, American Society of Utility Investors (11/16/81, p.53), Mr. Hossier (11/16/81, p.29), Mr. Sayer (11/16/81, p.22).
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William D. Travers, Ph.D.
NRC. Liaison
Enclosure:
As stated i
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Enclosure
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.l m 13N82 Jose h H. Benish Writer's Direct Dial Number:
(201 263-6779 At'9:00 a.m. Tur.sday December 29, 1981 4.
December 29, 1381 81-063
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N GPU PENNSYLVAHIA SUBSIDIIRIES PETITION FOR RATE CASE SETTLEMENT c-r E
h PARSIPPANY, NJ, December 29 -- General Public Utilities Corporation (GPU) reported today that its Pennsylvania subsidiaries vi s
have joined the Public Utility Comission (PUC) staff and the Office of the State Consumer Advocate in seeking PUC approval of settlements recently reached between each of the parties, which would fama11y resolve the base rate requests filedsby both companies with the PUC last June. -
In general tems for the customers of Metropolitan Edison Company (Met-Ed), the settlemen't would provide an inmedia'te $74
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niillion increase in annual bas rates, t$ be followed by a $74 million decrease in energy cost rates by year-end 1982 as. a result of the undamaged Tt4I-1 returning to operation and the recovery of certain deferred energy costs.
Pennsylvania Electric Company (Penelec) customers would, under tems of the agreement, experience an fenediate $54 million increase in base rates with a subsequent
$34.5 million rate decrease, on an annualized basis.
On June 30, Met-Ed asked for a $212.1 milliorr increase in base rates while its sister ccmpany Peneiec requested $124 cillion in increased rates.
The requests were reduced in Hovember by $44.4 million and $22.2 million respectively to reflect Governor
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Thornburgh's cost-sharing plan for the cleanup of Three Mile Island Unit 2.
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GPU RATE CASE SETTLEIEbTS
. ADD OHE According to GPU Chairman and Chief xecutive Officer WITTiam G. Kuhns, the settlements presentec today to the PUC Administrative Law Judge will, "make provision for recognizing THI-l's return to service. in a timely fa'shf 6h and will allow revenues for THI-2 decontamination efforts at a time when customer costs will be reduced through TMI-1 generation savings.
The accords will also pemit the companies to reduce their investment..
in'TMI-2 at an accelerated rate while recognizing othen costs being experienced by the Companies that are unrelated to Three Mile Island."
Kuhns explained that, if approved, the settlements would
. result in a series of customer rate increases and decreases in 1982 as anticipated events. occur.
He added that the rates would, within that period, level out at virhaily the present rate, with customers paying essentia11y' th,e same for their electricity as they do now.
The settlements also provide that the companies will not petition the Commission for further. rate increaser before January 1,1983, and wouie require Met-Ed to withdraw its petition for extraordinary rate relief that was filed with the Commission on December 9.
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As proposed step one of the ' settlements would ' provide
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Met-Ed an immediate $74 million increase in annual base rate revenues with Penelec receiving $54 million in increased annual base revenues.
The second phase.of rate changes would decrease Met-Ed and Penelec annual Energy Cost Rates (ECR) by $80 million. and $40-million respectively, to be partly offset by an increase in annu'al base rate revenues of $25 million. and.$12.5 mfilion, effective upon TMI-l's resumption of substantial generation.
Thus, the-second phase would result in net decreases in annual revenues of
$55 million and $27.5 mill' ion for !!et-Ed and Penelec, respectively, reflecting TMI-1 energy cost savings, while for the first time providing for customer pirticipation in the cleanup at TMI-2.
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GPU RATE CASE SETTLEMENTS
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ADD TUO l
l A third step in the settlements will reduce annual revenues for Met-Ed by $35.7 million__and..fo.t penelec by $12
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million upon the expiration of deferred energy charges and will increase annual base rate revenues by $16.7 million for Met-Ed and $5 million for penalec.
Kuhns said in cocraenting on the proposed settlement,,,
"Although not adequate to restore the Companies to complct'e
,6 financial health, these settlements should be sufficient to deal with the financial needs of their present reduced levels of f
operation.
They will give the Companies a level of financial stability n'ot seen since the accident at TMI.
They will also recognize the financial participation of customers consistent with Governor Thornburgh's plan for the cleanup of TMI-2, and should provide an important impetus to the other parties involved in financial participation in the decontamination program.
- We are hopeful that the proposed settlement will also encourage the 45 banks providing Met-Ed with short-tem financing to continue their financial support of Met-Ed," Kuhns noted.
The petitions outlining the proposed settlements were filed with pUC Admi.nistrative Law Judge Joseph Natuschak, who has presided over he,arings on the pending increases which began in Harrisburg.last October 1.
He is expected to submit his recocrnendation to the pUC commissioners in the very near future.
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