ML20092H245

Discusses Commission Action on long-standing Joint Request of Lilco & Long Island Power Authority (Lipa) for Transfer to Lipa of License for Plant,Per .Nrc Provided Commission w/SECY-92-041 Recommending Approval of Transfer

ML20092H245
Person / Time
Site:	Shoreham File:Long Island Lighting Company icon.png
Issue date:	02/14/1992
From:	Reveley W, Schenker C HUNTON & WILLIAMS, LONG ISLAND LIGHTING CO., O'MELVENY & MYERS
To:	Rogers K, Selin, The Chairman NRC COMMISSION (OCM)
References
CON-#192-12590 OLA-3, NUDOCS 9202210070
Download: ML20092H245 (5)

Text

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T0; _93015041672L P.03/06-a w"FEB-14-1992

.- / . 6178261 FROMI JO'MELVEWL & MYERS DC E

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' $.inc! @ M February 14,_ 1992 00CFI g gy m

-The tion.1Ivan -salin,; chairman T Connissioner Kenneth _' C. ; Rogers Coanissioner Forrest W. Remick Commissioner James W.JCurtiss

-Commissioner E. Gailfde_.Planque United States ~NucleareRegulatory commission 11555'Rockville Pike: .

1Rockviller Maryland 20852' -

_ 'LongLIsland. Lighting Company

-(Shoreham Nuclear-Power NRC Docket. 50-322 : - WStation)/'

Recruest for Trannfar of racility License

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Dear *Cha1rman-SelinVand Members of the Commission:

' We' write,Las counsel:for the Long Island Lighting iCompanyf(LI140)yand.the'Long Is1and Power Authority (LIPA),

concerning the: urgent.need for Commission action.on the long-

. standing joint request.of LILCO'~and;LIPA for-transfer to LIPA of the licenseifor the Shoreham-Nuclear Power. Station;(Shoreham).

Thislletterl updates.and supplements our letter of January 31,

1992.:

As the Commission.is' aware, the~ application for license

transfor hast been on-file 'since June 28,=1990'and'was noticed in the FederallRegister-on--March?20, 1991.~ 833 56 Fed.. Reg. 11781

-(1991).- The staff has provided the: Commission with SECY-92-041 c recommanding that;theilicense transfer:be approved. It is now even4aore--important than before:that the commission?s ap granted and ;made effective .slurina the month of Februarv. proval .-be

.One11mportant consequence of license transfer will be a phase-down, over 10 years, of tax obligations on the Shoreham-facility _. HAR New-York Public' Authorities Law 5 1020-q (McKinney-b 1991'lSupp.). l Attached-heretoiis.a copy-of an. article appearing-

_in. yesterday?scNewsday,-entitled " Shift On Shoreham-Is Urged."

=In..that' article,.New, York counsel,(Mr. Lou Lewis) for.one of the Ewould-betintervenors_in this-case, the Shoreham-Wading River CentraliSchool' District (SWRCSD), is' quoted as~saying that the

-Phase-down will_not begin until 1993-94 if LILCO "has not

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FED-14-1992 17:27 FROM O' tELVEth' 8, MYERS DC TO 93015041672 P.04/06 Page Chairman Selin and Members of the Commission - February

'14, 1992 transferred Shoreham to the state by March 1, the date on which tax rolls are finalized in Suffolk (County)" for 1992-93. LILCO and LIPA dispute this assertion, but if it is sustained by New York courts, this position would burden LILCO's ratepayers with an additional year of Shoreham tax payments, currently $82 million per year, of which $29.2 million goes to SWRCSD. This risk 1992.

will be averted if the license transfer occurs in February These circumstances make it imperative that the commission approve -- and make effective -- license transfer during February 1992. If the Commission has concluded its review of license transfer and found it in accord with NRC requirements, as appears to be the case, then no public purpose is served by exposing Long Island ratepayers to the risk of additional tax paymasts on a facility that will never operate again. SWRCSD plain.ty has sought delay in the transfer precisely to protect its strea.'s of revenues from LILCO tax' payments. Indeed, transfer might already have occurred but for SWRCSD's action in filing on l Decerber 19, 1991, a frivolous pleading contending that LIPA woull " expire" on January 15, 1992, an eventuality.that has not come to pass and as to which SWRCSD has not instituted legal proceedings in the State of New York.

In our January 31 letter, LILCO and LIPA questioned whether an administrative stay of an order approving license transfer would be warranted at all but expressed a willingness to

( accede to a brief administrative stay, provided that transfer could still occur in February. It now appears, however, that SWRCSD will seek to take advantage of such a stay unjustly to L burden Long Island ratepayers with an additional year of tax-related costs.- Accordingly, LILCO and LIPA urge the Commission to approve the license transfer promptly and to-do so without i allowing any administrative stay. Only prompt action, not subject to an administrative stay, will allow transfer of the plant during the month of February and assure that Long Island's ratepayers_will not be exposed to the throat of this additional burden.

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FEB-14-1992' 17827 FRCr1 0't1ELtJENY & MYERS DC TO 93015041672 P,05/06 Page 3 - Chairman Salin and Members of the Commission - February 14, 1992 LILCO and LIPA stand ready to provide any assistance to

_the_ Commission to facilitate transfer of the plant this month. ,

Sincerely _yours, I &

.W. Tay r Reveley, II< arl R. Schenker, Jr Hunton-& Williams O'Melveny-&-Myers -

951 East _Byrd Street 555 13th Street, N.W.

Richmond, Virginia-23219 Washington, D.C. 20004 Counsel for Long Island Counsel for Long Island '

Lighting Company Power Authority Attachment cet James P. McGranary, Jr., Esq. (by fax)

Edwin.J. Reis,-Esq. (by tax)

Charles-E. Mullins, Esq._(by fax)

Samuel J. Chilk Nicholas S. Reynolds, Esq.

. Stanley B. Klimberg,-Esq.

Samuel A. Cherniak, Esq.

- - FED-14-1992 17126 FROM O'tELVEl# . ' & MYERS D

TO' 93015041672 P.02/06 l DIA32IDU21Qg FAX NO.

The. Hon.~Ivan salin, Chairman 301/504-1672 '

LCommissioner.Kenneth~C... Rogers 301/504-1672 Commissioner ~Forrest W. Romick 301/504-1672 Commissioner James W. Curtiss- 301/504-1672 Commissioner E. Gail de Planque 301/504-1672 James P.:McGranery, Esq. 202/857-2757' Edwin J. Reis, Esq. - 301/504-2260 Charles E. Mullins,_Esq. 301/504-1672

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Shift On Nac staff oKs shoreham Shift SHOREHAM from Page 24 first payment in heu of tues, vfTwe.

ShO' h tively preventing the distnct from re-ed to pay the 1992 93 taxes on the ceivmg an extra year's tan revenue plant ifit has aot transferred Shore. "We believe the March lat date ham to the state by March 1, the dat, means nothing at all." Kenel said.

ISLVY cn which tax rolls an finalised in Suf- I*wts, however, said Kenel had no folk. Payments in heu of taxes would legal bests for his threat. "I'm afraad then begin in 1993 94 what we have here is a severe case of While not daractly contesting thv. posturing by Mr. Kessel." Lewis said NRCstafftellspanel aamt. xes.ei .o,,.sted txat the ia. -ur. xeanei em. io thinx he , abie tax payment wouad be treated as the to do wh=.er he want.."

LetNYtake overplant Dy Kinsey Wilson trarr wnma h staff of the NucJear Reg,21 story Comaussion has tycommended that New York be m!! owed to take formal pnas.eassen of the Shornhem nuelaar pm=*r plant, see Ling the stage for the comnuasaan's approval of the taansfer and eventual decommassiontng of the plant.

The decision comes three years aher Gov Mano Cuomo and the Long Idahd 14hting Cd announrWi tlwy had nsyutlated an agtvement that wouki runsae LI1LO from bankrupwy whale ensurmt that the 86.5-billion plant. though fully buih. would newsr opem In makmg its recommendation, the comnwan's sta!T found the state-run authortty dea.gnated to taka over ShorehAm tachtucally and finanC&alh up to the tank. The commiennon la undely expected to endoran the st4ff rv.vuuneminuun, pumaably this morah.

. The dactaaon. however. muy come too late to avert another year of p y-tas payments on the plant that would cost , and by esteeston its rate-payers. at least $83 mall on nest yter.

that prospect led to tunewed charynn yesterday that the Shoreham-Wedmg IUvgr Central Schood Do.

tnet - which will roomm 529.2 milhon in tases fbm J

the f.r bant this yeer e purely - was seeking mermnary r n oratoThe delay the trans-dams has waged a parastant legal battle against shutdown.

"They are using the sumhancreen dopemeg 5 burn.

h m to ime the eta d that district wita more money ** said Ri Konset chatrman cd the toog I4and Power Authee ty. the that is slated to assume control of the plartt. ' don't cars about savmg Shoreham. All eenr about is **my the ratepayers on Long Lou Iswis. a Poustikeepsie attorney twpresenting the school datnet, defended its offutta to avert Shore-ham's destruction saying there wers amportent policy questions that were never addreened in the rush to prevent the plant fmru mmans on Ame.

Kennet scoffed at thoen claims and said the author.

. ity may attempt to whittle down the amount, the du&.

trict twasve6 if etTorts to delay the transfer centinue.

Bar.h the Shoreham settlement and the 1966 sta&

ute authormng the crvataca of the long taland Power Authomy call for the authenty to mahn payments to th? echool d;stnet. Suffolk County and Brookhaven Town m beu of taxes or the Shoreham plant for 10 years aAer the transfer takes efTect. The first annual payment in heu of tazee would be equal tn LILCO's fisual property-tas payment. and est annual pay.

m:nt therraAer would be reduced by 10 percent.

Lewin saad yesterday that LIICO would be obbgan, Pleone see SHOREHAM on Page 28 TOTAL P.06