ML20084P815

Resubmittal of Contention I Re Financial Qualification of Util to Operate & Decommission Facilities

ML20084P815
Person / Time
Site:	Limerick
Issue date:	03/05/1984
From:	Lewis M CITIZEN ACTION IN THE NORTHEAST
To:	Atomic Safety and Licensing Board Panel
Shared Package
ML20084P806	List: ML20084P803 ML20084P815
References
OL, NUDOCS 8405180438
Download: ML20084P815 (5)

Text

-

. 3._ -

} y.. ':s

'~ . . . . .w United States of Am2rica

• 1. Yd Nuclear Regulatory Commission '

DOLKETED i- Before the Atomic Safety and Licensing 3'oard N 7

?${

' ;&'s; Philadelph h Electric Company

'84 MAY 18 A10 '47 ' a (LimerickGeneratingStation tkiits 1 add 2 )

"ocket Nos 50- 352 and 333 o L

.. . a. e r m n 0 -

wy ,

• DM.'.UfNG6 SLH ~ w - :t MMiCM ,

L

a. ~M a

CIIIZEN ACTION IN THE NORTHEAST CCNTENTION I :q.g:9 FINANCIAL QlRLIFICATICE OF PMIIADELPHIA EIECTRIC COMPANY ,j;;v.g TO_0PERATE AND IECOMISSICW THE LIMERICK GS. ,, Q _

. ~ :.

Introduction to Citizen Action in the Northeet (CANE) . ;q * .f

_ CANE is a citizen action group. CANE has been involved in anny educational . af(

forums, providing services to senior and low income citizens such as filling

' cut low income energy assistance forms,, and providing non-partigga forums for political debates. ..g CANE has also been active in many energy related activities such as home energy audits  ;

The headquarters for CANE is at l c1411 Princeton St. Philadelphia, PA,19111, and the telephone number is 1 .

725 7825' .

3 However, CNNE does not wish to be added to any amiling lists -

as the non-lawyer , legal representative.of CANE is Marvin I. Dwis who 10 presently on the mailing and distribution lists for thLa hearing. A l

ccparate mailing for CANE is unnecessary and burdensoas. The present mailing p t2 Intervenor hwis will more than suffice.

l t

i CANE has many lawyers , accountants, bookkeepers, and treasurers within its menbors' hip and Board. Because of CANE's familiarity with financial m CANE wishes to participate in this most timely and important financial

. qualification contention.

CANE's legal repres6ntative.at this time will be Marvin I. rewis .

Intervenor .I4wis is 3resently a participant in this hearing and a1so the Energy Committee Chairman for CANE.

CANE will not be participating in Intervenor 14wis' other contentions and reserves the right t3 raplace Intervenor Inwis with other legal representation at a later date CANE has a mailing list'of 200 plus members. .

CANE regularly meets on the first

' Monday a6 the month at its headquatters for a 3ceed aseting .

. Energy Committee meetings are usually held monthly.

Other activities are held as needed.Also public forums are also held monthly.

Pleasa call ahead if you wish to attend any CANE activities be changed due to scheduling conflicts. as place and time may 8405180438 840514

,'. PDRADOCK05000g G

e

. 2.  : . .. a .

Introduction.

'Cd On March 24, 1982, the NRC anand:d its financial qtalificatiens rule to caerpt  ! ?.h public utilities from the requirement thatthey demonstrate their financial qualifications to operate and decommission their planta as a condition af Df I '. @

rec 31ving an operating lipense. 47 Fed. Reg.13750,mr 31,1982. Intervence Lewis .

ME[S . a ..

proceeded to contest , in a very limited way, the financial qualifications of

S d PhilsdalphiaElectrictooperateMSbeforethePennsylvaniaPublic'UtilityCommission.'.h '

Bsth ALI Klovetorn and Commissioner Taliaferro informed me that tho PUC could not f' G.'i e.

invastigate the financial qualifications from the viewpoint af safety as that -C was the province of the NRC.(PA PUC Docket I-80 LOO 341.) . ' 'hMN' Nonetheless, the PA PUC ordered PEco to cancel or dafer iga #2 on the basis af lack 2.'.

~

of demonstrated need.(PA PUC I-80100341 Meeting and Order Dec 16,1983.)

c]

Althogh IGS #2 was deferred, e no ..; record delved into . %j the question of safely operating IGS#1 or the utilities ability to decommission

~

/

either Unit 1o 2. Further the NRC rule precluded any litigation of f4nancial qualifications before the NRC. -

This was a real Catch 22 . The IS Court of Appeals for the DC recafnN it as cuch and overturned Isrch 24 NRC amendment. New England Coalition on Nuclear Polution v. NRC .No. 82-1581(February 7,1984.) The Court's determination that the t

amendment was invalidly promulgated has the effect af reinstating h origing.

financial qualificfions rule. CANE therefore takes the opportunity, formerly denied by the illegal amendment , to file this challenge to PEco's financial qualifications to cperate and decommission Limerick Generating Station thits 1 and 2. l Financial Qualifications Rule Pursuant to 10CPR para 2.104(c)(4), the scope of issues that can be raised in an OL hearing includes: -

Whether the applicant is technical 71 and financially qualified to engage in tie activities to be authorized by the OL in accordance ut.h the regulations in th&s chapter...

See also 10 CPR PP 50.40(b), 50 57(a)(4). To obtain an OL , an Applicant must submit to the NRC "information sufficient to demonstrate to theCommission the financial qualifications of the applicant" to carry out the activities for which the license is ccught.10 CFR 950.33(f). This information includes a demonstration

...that the applicant possesses the funds necessary to cover estimated operating costs er that the applicant nas reasonable assurance of obtaining W necessary funds, or a combination of the two.

g. More specifically the OL applicant must show that it c

...Im sesses or has reasonable assurance af obtaining the funda necessary to comer '

the catinated costs of operatior. (gthe period of the license or for 5 years, whichever is grsater , plus the estimated costs of permanently shutting the facility down and maintaining it in a safe condition.

i.

l y . '. .

'o The catablishment of adequate financial qualifications by a utility in ccosntial to d c finding that a nuclear power plant can and will be operated safely during its *.

lifo. As the Licensing Board recognized in Cleveland Electrie illuminating Co.

')

(Perry Nuclear Power P3 Ant, Units 1 and 2)lBP 81-24,14NRC 175,196 (1981): }.,

...The current rule has an important purpose. It is possible for an applicant to ..

ccrape by financially during the construction .. stage. .That 1,s, due to unantic40sted costs increases ard backfit requirements , it might barely manage to complete '

construction. If it does just scrape by, then the company's financial straits could ,

interfcre with its sound judgment in safety matters. Safety measures that aight be -

taken by a financially flealthy company might not be taken..

Thus the financial health of a utility is integrally related to its ability to operate o plant safety.

ContrntionI.

~

Applicant ha,s not demonstrated that it is financially qualified to operate and decommission

' the Limerick nuclear power plant in complianed with 10 CFR pp 5033(f),50.40(b),

50,57(c)(4), and Appendix c to # art 30.

Basis hiladelphia Electric Company is the utility which is building and phnning to operato Limerick Generating Station Units 1 and 2. Many factors bring the financial qualifications of PECo into doubt:

Coat of Limerick GS Units land 2 have ballooned from 400 million plus to 6.4 billion plus(14 X)

Ccntinuing and worsening regulatory backfits and requirements have delayed completion many yeara

Falling electric demand eliminsed the need for more powerplants in the PECo service area.

A ccnstantly worsening regulatory environment at the PA PUC which orderred the deferral of #2.

Admission by PRCo that it is seeking a loan rather than a bonds sale- to protect its already weakened financial condition from additional stress (Inquirer "PE seekd loan for Limerj A Mational viewpoint which considers nuclear utilities poor financial riska(Inquirer s2-29-84PJJ Intervsnor Lewis was a participant in the PA PUC I-80100$+1 Docket in whch the PA PUC orderrsd the deferralor cancellation of Limerick #2. He saked questions of Masrs Paquette and Boyer of the PEco. They both told him to his face that their, on the record, utimates of the cost of ICS were solid. "ubsequently PEco has raised the estimated cost of IGF hundreds of millions of dollars more han the PEco testimany at PA PUC.

PECD has also had a 1.1 Billion dollar loan plan disapproved by the PA PUC.

Considering the severity cf the public admissions by PECo about its weakening financial condition and its inaccurate testimony on the PA PUC record, there is no reason to as2ume that PEco can operate and decommission another nuclear plant with its attendent financial burden.

^

g, _ . _ _ - ~

• t . I a

• ; r.19 l\

Need fer censideration cf centention.

e The inforsation and admissions of PEco demonstrates a utility perched upon the brink of;.

financial disaster. The company's serious financial yIroblems are likely to impings ,..,L '

on its ability to operate a plant in a safe condition.

. 4.g. i ' '

Considering PEco a financial crisis, it cannot provide the Commission with the . ., f . ~

necessary assurance that it is financially qualified to operate the Limerick GS . .e in ocapliance with NRC safety requirements. Therefore , the Licen'. sing # card should admit this contention add establish a discovery period for this contention wit.h

k.: ~f

, .? (.;

cxpedience.

Satisfaction of Requirements for late filed contention.

'l I'h M

1)~I had participated and objected while the NRC was formulating its.financini .3 requirements rule change. I knew at the time that a financial requirements rule

)

changa would cause any such contention to be ruled out of ordar in the Liaorick hearing and therefore saw no reason to file at that time and pursued what I could thru other litigation. (PA PUC I-80100341) The issue of safe operation in a financiany f trcub1'ed F3Co is still unheard and the NECNPvNRC decision in the IS Court af Appeals in DC No 82-158141ves me the opportunity t> file in this hearing. {

]

2.)There is no cther place to be heard. This is the only place to hear a  ;

financial qualifications contention that goes to the heart of the matter c! whether PEco can operate ISS safely considering its finannial difficulties. I would be happy I

to go to other tribuda s but they would just probably kick the case back here saying that this Board had jurisdiction.

3.) CANE and Intervenor "ewis can be expected to assist in developing a sound record.

CANE has lawyers, accountants , corporate treasurers and bookkeepers in its menbership. Also Intervenor Imwis regresented CANE at the PA PUC at'I-80100341 wherein sany financial questions were raised and and answered inaccurately by PEco ropresentatives uuch as the final cost of I,imerick.

4.) CANE's interest in not represented by any other party. However, if another jarty wich2s to be lead intervenor on this issue, CANE is very open to suggestion as such an arrangement would conserve CANE and Intervenor Lewis' resources.

, 5.) CANE's. intervention would not significantly broaden the scope of the hearings.

Many cententions have not gotten- to the evidentiary stage and even more have diccorery to be scheduled.

Unlesst the utilities financial condition worsen <.

Gysn.more than at present, there is no r anon to believe that ,this contention could not be handled expeditiously. Even 'the utilities financial condition, worsens asriously , then the worsening financial conditionw ould be even more reason to hear

> tnis enntention.

. .>. . l.

CANE believes that conditions for late filed contentions haya been more than adequately - '.'

'*' h met. bevor , barring CANE from litigation on this contention would be very unfair sinco CANE was originally precluded from filing this contention due to an illegal ' ';'[E!

rulo change on the part of,the NRC. ' Y'.i

.?.]$

Fro 3 any reasonable standpoint CANE should be allowed to litigate this contention. ff s , -:%.

Conycreoly, even from a prudent standpoint, CANE should be allowed to litigate ,- fj e

! this centention. A prudent Board would allow this contention on the basis  ;'

that this contention could cause alicense to be disallowed . There is .,

tuoh cuidance existing cn the record that PEco k not financially sound enough to

operm43 ISS safely. (PA PUC {-80100')41)

Respectfully submitted, Ltu,5 SY'

- Marvin I. Lewis Energy Chairman ani legal representative for CAME Please-do not add CANE to amiling list.

One copy to Marvin I IAwis 6504 Bradtard Ter Ph3adelphia PA 1911+9 215 289 596+.

0 9

0 0 *

• 9

UNITED STATES OF AMERICA NUCLEAR REGULATORY ~ COMMISSION ATOMIC SAFETY AND LICENSING BOARD BEFORE ADMINISTRATIVE JUDGES:

Lawrence Brenner, Chaiman Dr. Richard F. Cole .

Dr. Peter A. Morris

)

In the Matter of ) Docket Nos. 50-352-0L

) 50-353-OL PHILADELPHIA ELECTRIC COMPANY )

(Limerick Generating Station, April 27,1984 Units 1 and 2) )

)

i ORDER SCHEDULING-PROPOSED FINDINGS Proposed findi.ngs of fact and conclusions of law (" proposed findings") on LEA Contention I-42 (environmental qualification) and on LEA's onsite emergency planning contentions shall be received by the Board and participating parties (and promptly thereafter by the remainder of the service list) on the following schedule:

June 11 - Applicant's proposed findings.

June 21 - Intervenor's (and governmental participants')

proposed findings.

July 2 - NRC Staff's proposed findings.

July 9 - Applicant's proposed reply findings.

(i k

b If the evidentiary hearing on AWFP Contention VI-1 (welding), which will begin on May 7, 1984, at 1:30 p.m., is concluded by May 11, proposed findings on Contention VI-1 also shall be received on the above schedule.

- l The page limitations (typed, double-spaced) are: For Contention I 30 pages for findings and 15 pages for the reply; for the onsite emergency planning contentions - 60 pages for findings and 30 pages for the reply. Tr. 10,288-90.

Th'e parties are reminded of the standing order in this proceeding '

that, pursuant to 10 C.F.R. 5 2.754(b), participating parties are required to file proposed findings, and the failure to do so may be deemed a default.

IT IS SO ORDERED.

FOR THE ATOMIC SAFETY AND LICENSING BOARD

' Law'rence Brenner, Chairnan ADMINISTRATIVE JUDGE Bethesda, Maryland April 27, 1984

i e

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION

, ATOMIC SAFETY AND LICENSING BOARD BEFORE ADMINISTRATIVE JUDGES:

Lawrence Brenner, Chairman Dr. Richard F. Cole -

Dr. Peter A. Morris

)

In the Matter of ) Docket Nos. 50-352-OL

) 50-353-0L PHILADELPHIA ELECTRIC COMPANY ) ,

)

(Limerick Generating Station, ) April 27, 1984 .

Units.1 and 2) )

)

COURTESY NOTIFICATION As circumstances warrant from time to time, the Board will mail i copies of its memoranda and orders directly to each party, petitioner or other interested participant. This is intended solely as a courtesy and convenience to those served to provide extra time. Official service will be separate from the courtesy notification and will continue to be made by the Office of the Secretary of the Commission. Unless otherwise stated, time periods will be computed from the official service.

I hereby certify that I have today nailed copies of the Board's

" Order Scheduling Prop.osed Findings" and " Notice of Resumption of i Evidentiary Hearing" to the persons designated on the attached Courtesy Notification List.

%h m 2. tys , h% i Valarie M. Lane Secretary to Judge Brenner Atomic Safety and Licensing Board Panel Bethesda, Maryland Attachment

. - - - - - =.

l

?

t 1 __

Troy B. Conner, Jr. , Esq. Martha W. Bush, Esq.  :

Mark J. Wetterhahn, Esq. for Mr. Rodney Johnson, t Conner and Wetterhan Managing Director i 1747 Pennsylvania Avenue, N.W. City of Philadelphia '

Suite 1050 Municipal Services Bldg.

, Washington, DC.20006 15th and JFK Blvd.- Room 1530 Philadelphia, PA 19107 Spence W. Perry, Esq. -

Associate General Counsel Federal Emergency Management Agency Room 840 500 C Street, N.W.

Washington, DC 20472 Charles W. Elliott, Esq. Zori G. Ferkin, Esq.

Limerick Ecology Action Assistant Counsel Brose and Poswistilo Commonwealth of Pennsylvania 1101 Building Governor's Energy Council lith & Northampton Streets P.O. Box 8010 Easton,.PA 18042 1625 N. Front Street Harrisburg, PA 17105 Benjamin H. Vogler, Esq.

Ann Hodgdon, Esq. Steven P. Hershey, Esq.

Counsel for NRC Staff Community Legal Services, Inc.

U.S. Nuclear Regulatory Commission Law Center West Washington, DC 20555 5219 Chestnut Street ,

Philadelphia, PA 19139 Mr. Frank R. Romano Phyllis Zitzer Air and Water Pollution Patrol Limerick Ecology Action 61 Forest Avenue P.O. Box 761 Ambler, PA 19002 Po~ttstown, PA 19464 Mr. Marvin I. Lewis Argus Love, Esq.

( 650A Bradford Terrace 101 East Main Street l- Philadelphia, PA 19149 Norristown, PA 19401 l

Mr. Robert L. Anthony Mr. Joseph H. White, III Friends of the Earth in 15 Ardmcre Avenue l the Delaware Valley Ardmore, PA 19003 -

l 103 Vernon Lane, Box 186 Moylan, PA 19065 i

I L ,

p g

exKETE3 Citizen Action in the Northeast

~04 MI Id RIV 40 l

l 1411 Ph NCF".4 AVEfJUE, PHILADELPHIA, PA 19111 PHONE: 725-7825 ECCi:tSRAMCH 515  !

l 1

~

i O

e-; ^ %A% 0)/tRQ m .Aga %3AL ,, I l h 4 aet  ; l Iy /  ;

f zmf 0$A /

/ e

% l l

1

[ #

/  :

1 s, . e- .

CJ v e n

• bd 8 d

i . , ,

b$$$00dO C db4 fd fgdl} ,fg Til 4

O^4,t.h

^h b f

~:m e o s ..  ;

I i

g'r. l

O g

Citizen Action in the Northeast 1411 PRINCETON AVENUE, PHILADELPHIA, PA 19111 PHONE: 725-7825 i

i r

4

• ,,e LE - w a, ))1 i avbad 4 l

• b .

~

,YL.i:t.

., a. r "o " .

l

/EYL+-c.u' '

~.

.p u_.~ ~.f ~.- ~

flo /a an.2 yug

~;

T"Y& ,( 5?

a ; l . ; Q $ '.L u a . a e. f MS se f,$!" z?.;'

I

' e :- ~ a .. .)et L.Lic f .,:..

O

)

&J L

~

n m

V w Citizen Action in the, Northeast  :

1411 PRINCETON AVENUE, PHILADELPHIA,fA 19111 PHONE: 725-7825 B.%IiCH l f

i y

, gy ,

6 mm(;

r s' r(2 e

,Js o&s. <

to R e_

7

• h w~g' - .

l ) 5 ICYII " & t~U S l /0 p /&LY (,' ' f; h V

U b dsw :p y),c jt%_ $ ,, & g \

q pad,,g, 4; h e A ,. '

\ G. ,  !

k~  !

ega*,l@%n wsp c!!2 -

@ < R- sur l

.$'s fli c JJA c, . .,, . n ,a 0# ## '

Lb/ c N 746 'C '

fu ofe.4 co r,

. & L,.s hL ~ ,

. ,,., y -

l FW6 - - . . - . _ . - . - - _ - _ _ _ _ _ _ _ _ _

~

pl  !

0.?"EI[*

Citizen Action in the NorihEast u. .o nw .sc, 1411 PRINCETON AVENUE, PHILADELPHIA, PA 19111 PHONE: 725-7825

^

, g.ii ,

g .:

,4- 0 3 ,_.a x w e A' .

n.u! h ale %i f.

u /y Jonee y+ L i p f j ,( w a VwJ ,

e

(

g A

e

/e LJ v

CA L l

l l biAfu *t.d'A (3 %1-1, ib.e , i i y

fv 4 f e4. A.3

. Ge 4 ac r-t c quy fo ry g , y, g Y Q ))),j.--

""' W

t'2L n E TEC

. i!G -

Citizen Action in tiae Northeast 1411 PRINCETON AVENUE, PHILADELPHIA, PA 19111 PHONE: 725-7825 sw tupbe \WC bx6 s aw hula A

% upmr CMt o iud h d peJTe ej

• bb b T

%J.% yM's M mrh .

sm e-

'a

,, y s taw aQ.

a s c3 , ~, , . Pui 4 q

S., .v e s . a

• G- 4

• TI -

\ q 'y ($

,,,, ~4 a .

[h % ,5)<l.)- - 'D b '~

'c, , . .$ . 9 ,' 4 .s c. . c

-W-