ML20108D478
| ML20108D478 | |
| Person / Time | |
|---|---|
| Site: | Shoreham File:Long Island Lighting Company icon.png |
| Issue date: | 08/30/1982 |
| From: | Kammerer C NRC OFFICE OF CONGRESSIONAL AFFAIRS (OCA) |
| To: | Carney W HOUSE OF REP. |
| Shared Package | |
| ML20105B503 | List:
|
| References | |
| FOIA-84-250 NUDOCS 8412130231 | |
| Download: ML20108D478 (2) | |
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UNITED STATES j'
g NUCLEAR REGULATORY COMMISSION E
WASHINGTON, D. C. 20555 SECRETARIAT RECORD COPY
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AUG 30 M
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The Honorable William Carney United States House of Representatives Washington, DC 20515
Dear Congressman Carney:
Thank you ~ for your letter dated August 11, 1982, on behalf of your constit-uent, Rudolph Wolf, who is concerned about compensation for offsite losses in the event of an accident at a nuclear power plant licensed by the Nuclear Regulatory Comission (NRC).
Congress made special provision to protect property owners in the vicinity of a nuclear power plant against losses resulting from a nuclear power plant accident by enacting the Price-Anderson Act.
Under the Price-Anderson Act (Public Law 85-256, as amended, 42 U.S.C. 2210) there is a system of private funds and government indemnity totalling up to $560 million to pay public liability claims for personal injury and property damage resulting from a nuclear incident.
The Act, which was enacted in 1957, extended in 1965 for ten years until 1977 and ex, tended again in 1975 for an additional ten-year period until July 31, 1987.
The Act requires licensees of conmercial nuclear power plants having a rated capacity of 100,000 electrical kilowatts or more to provide proof to the NRC that they have financial protection in the fonn of private nuclear liability insurance, or in some other fonn approved by the Comission, in an amount equal to the maximum amount of liability insurance available at reasonable cost and on reasonable tenns from priv te sources. That financial protection, presently $555 million, is comprised t,f primcry private nuclear liability in-surance of $160 million available from two nuclear liability insurance pools, Anerican Nuclear Insurers (ANI) and Ntual Atomic Energy Liability Under-writers (MAELU), and a secondary retrospective premium insurance layer up to
$5 million per reactor per incident but not in excess of $10 million for a single reactor in any year.
With 79 commercial reactors operating under this system, the secondary insurance layer totals $395 million.
The difference of $5 million between the financial protection layer of $555 million and the $560 million liability limit is the present government indem-nity level.
Under the present system, government indemnity will be phased out as more commercial reactors are licensed and licensees participate in the retrospective premiun system.
At the time the primary and secondary financial protection layers by themselves provide liability coverage of $560 million, government indemnity will be eliminated.
Then the liability limit would in-crease without any cap on the limit in increments of $5 million for each new xQ commercial reactor licensed.
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Nsponding y Sincerely, C0hJti tuents 's
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