ML20045A736

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Expresses Concern Re Rising Operations & Maint Costs (O&M) for Nuclear Generation in Us,Due,In Part,To Regulatory Pressures & Requirements
ML20045A736
Person / Time
Site: Millstone, Seabrook  Dominion icon.png
Issue date: 07/08/1992
From: Keesier A
FLORIDA POWER CORP.
To: Selin I, The Chairman
NRC COMMISSION (OCM)
References
NUDOCS 9306110320
Download: ML20045A736 (1)


Text

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Fk>dda P.o...w..e. r.

Allen J. Keesler, Jr.

PeSoet Julv 8,1992 c'w t. u..C+.ce hir. Ivan Selin, Chairman Nuclear Regulatory Commission Washington, D. C. 20555

Dear Mr. Selin:

I am writing to express concern with rising operations and maintenance costs (01h1) for nuclear generation in this country due, in part, to regulatory pressures and requirements. It appears that this is exempli 6ed in the recent decision by Northeast Utilities to increase its nuclear staf0ng by 450 people and annual O&M ensts by some $20 million. It is my understanding that this decision was partially due to regulatory pres >ure regarding operation of the Millstone plant and Northeast Utilitics' acquisition of Seabrmk.

in the current atmosphere of deregulation of the electric utility industry and increasing competition. O&ht generation costs will become increasingly important and will be a Ley factor in decisions for future generation facilities. In this regard, I am convinced that unless the current trends in O&M costs are reversed, our hopes for the new generation of nuclear plants will not materialize and in fact life extension of many of our current plants may not take place.

I was pleased to hear that you have recognized this issue in your address before the NUMARC Board of Directors last month. There are a number of current nuclear regulatory requirements where cost-effective contribution to nuclear safety is questionable ~ such as in the area of security. In addition, there are a number of pending regulatory issues which have the potential, if not properly developed and implemented, to increase OAM costs without providing a enmmensurate gain in nuclear safety. Examples include procurement of materials, severe accident management, shut-down rist. and maintenance.

You can be assured that we will take advantage of the opportunity you have offered to work with the Nuclear Regulatory Commission and its staff to identify those regulatory requirements that unneecssarily increase O&M costs. We believe such an effort is vitally important to the continued operation of current plants and for the future of new nuclear generation.

I would enjoy discussing this further with you at any time.

Personal regards, W -~..

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