ML20062K215

Responds to to President Carter Re Responsibility for Accident Cleanup.Util Not Allowed to Charge Consumers for Accident,But May Charge for Purchasing Power to Replace Power That Would Have Been Provided by Facility

ML20062K215
Person / Time
Site:	Crane
Issue date:	10/24/1980
From:	Snyder B Office of Nuclear Reactor Regulation
To:	Malewicki M AFFILIATION NOT ASSIGNED
References
NUDOCS 8012020729
Download: ML20062K215 (5)

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Cocket No. 50-320 Mr. Michael S. Malewicki RD 1 Gettysburg, PA 17325 l

Cear Mr. Malawicki:

I am writing in response to your ietter of September 20, 1980 to President Carter concerning responsibility for the cost of cleanup at Three Mile Island Nuclear Station, Unit 2.

The Pennsylvania Public Utility Cocaission (PUC), in a decision and order of June 15, 1979, ruled that costs of damages caused by the accident at Three Mile Island would not be included in the present rate base for cus-temers of Metropolitan Edison and the Pennsylvania Electric Company. These custcmers will, hcwever, be responsible for costs associated with purchasing pcwer to replace pcwer that would have been provided by the TMI facility.

The Pennsylvania PUC reaffirmed this decision in an order of May 23, 1980.

In the same order, they also ruled that Three Mile Island Unit 1 be removed from the Metropolitan Edison and Pennsylvania Electric Company rate bases.

As a result, their customers will be free of all maintenance, interest, and capital cost. expenses associated with Unit 1.

Should Unit 1 be returned to service, costs associated with its operation would, of course, become part of the rate structure.

The licensee has the primary responsibility to physically carry out decon-tamination operations, while the NRC was created by Congrees to regulate the commercial use of nuclear energy. Under the Atcmic Energy Act of 1954, as amended. NRC has the authority to revoke licenses, take possession of special nuclear material (uranium fuel), and license other organizations if necessary. NRC can operate a nuclear facility if it deems such operation necessary to protect the public health and safety should Metropolitan Edison Company be unable to carry out its responsibilities as a licensee. NRC is currently preparing a contingency study considering the possibility. At present, however, the resounes necessary for NRC to implement its direct involvement in Metropolitan Edison activities are not authorized and our existing statutory authority t; irs not provide a basis for governmental assis-tance to GPU. While we are concerned about financial impacts on constaners, the NRC's primary responsibility is the assurance of_public health and safety._ _

THis DOCUMENT CONTAINS P00R QUAUTY PAGES E

80 12020 72 9 g

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.o, Mr. Michael S. Malewicki ~

OCT 2 41930 State public utility ccmissions and the Federal Energy Regulatory Comission have primary responsibility regarding the rates that censumers pay for elec-tricity.

I trust that this adequately responds to your concern.

Sincerely,

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Bernard J. Snyder, Program Director TMI Program Office Office of Nuclear Reactor Regulation Distribution:

Docket File 50-320 PCR TERA TMI P0 r/f TMI Site r/f J. Collins B. Snyder R. Weller

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.L1 Gettysburg, PA 17325 Septenber 20, 19c0 President Jinny Carter The 7thite House Viashington D.C. 2C500

ear ? resident Carter, I an genuinely disyurbed about the recent events concern-ing the firgc_ial in,plicg ~~ M the pjI acciden]. As a resi-dent of the area served by GPU

I have a feeling that this governnent, which I helped to install, is abandening nany of us in the Central and South Central Pennsylvania area.

TMI was a disaster, yet where was the federal govornnent when relief is needed? 7/ hen there are floods, tornados or other disasters there is financial assistance fron Washington. Why not in this case? Mr. President, GPU needs assistance, it cannot finance the TXI clean up alone.

As supporters of nuclear power, both ny wife and I have been patiently waiting to see what would transpire after the accident. lle are both disappointed with the governnents react-ion. The NRC was established as a governnental agency j;o set gar!eIInes"_ aid to supervise the operations of nuclear utilities.

HowEver, when a nuclear accident occurs the reponse of the governnent is pitifully slow.and inadequate. The 637 erg:ent nus c'enF :o "r'ealize tE.t~by~ not financially assisting GPU Lehington is placing c undue burden en the. stockholders and owners of GPU and nest inportant on those of us who will' he paying for this disaster 1:ng into the future.

Mr. President, let the governnent begin to take innediate

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