ML20149E973
| ML20149E973 | |
| Person / Time | |
|---|---|
| Issue date: | 06/26/1997 |
| From: | Mcgaffigan E NRC COMMISSION (OCM) |
| To: | Hoyle J NRC OFFICE OF THE SECRETARY (SECY) |
| Shared Package | |
| ML20149E949 | List: |
| References | |
| SECY-97-117-C, NUDOCS 9707210157 | |
| Download: ML20149E973 (2) | |
Text
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N OT ATIO N VOTE RESPONSE SHEET TO:
John C. Hoyle, Secretary FROM:
COMMISSIONER MCGAFFIGAN
SUBJECT:
SECY-97-117 - FINAL POLICY STATEMENT ON RESTRUCTURING AND ECONOMIC DEREGULATION OF THE ELECTRIC UTILITY INDUSTRY Approved A
Disapproved Abstain Not Participating Request Discussion d
J A,
ccv x,.,
SIGNATURE lbO V b'
Release Vote / x /
DATE l
Withhold Vote /
/
Entered on "AS" Yes X
No
??S # *c S s UEc'*
CORRESPONDENCE PDR
. - -. - ~
Comments of Commissioner Rogers A discussion off theNRC reviewiprocess is contained in two' draft SLandard Review.P1ans-(SRPs). that~ the NRCsissued for consentU NUREG-1577-
" Standard Review Plan onL Power Reactor 11censee Financial: Qualifications:and Decommissioning Funding Assurance"-(January 1997) Land NUREG-1574u" Standard Review Plan on-Antitrust" (January.1997)?,^ discuzion 6f"the cubhent and '
futurc N9C revicw proccz <;il' be contbined-in two Standard Rc'.ic" Plam that the 49C pl;= to izuc One for 'inancial quali'ictic= and deco-izioning funding :=ura= 0 review: and the Other for antitruct reviews.
In addition, the NRC issued an Administrative Letter on June 21, 1996,ithatLinformed power reactor licensees of(their ongoing res approval from the NRC: for 'any; changes >ponsibility3 totinform and;obtain cadvance that:would constitute aitransferfof the hcenserthat irfbh cd poder 'rcactor'11desc= cf"thei? 0451?ifR:;icsibility td irfor, and Obtain advance approval fr0- the MRC for any dang = that would c0= titute a trc= fer-Of thc 'icc=c, directly or indirectly. through transfer of control of the NRC license to any person pur.suant to 10 CFR 50.80. SThis administrativealettenilso reminded addresseessor;their?res~ pons ~ ibilitysto ensure. thattinformation regarding aclicensee*srfinancialiqualifications-and decommissioning. funding' assurance thate mayahaverassignificant: implication' for publichealthand:safetyis;promptlpJicirr=p0=ibiHtyto:=urethat reported totthe:NRCi "'i ad-inistrbtive i
.etter t h6 'r~c-irded nJrez c= cf' e for= tion regarding a ' ice =-cc": financM' qualificatic= =d deco-izioning funding czur=ce which =y have a sign 4ficnt i pliation for public health and safety is pro ptly reported to the N9C.
III. Specific Policies The NRC. is concerned about'the potential impact of, utility restructuring on public health andl safety.
The:NRC has not;found a. consistent' relationship between a. licensee's financial health and generaliindicators of safety such as the NRC's Systematic Assessment of Licensee Performance. L The NRCLhas traditionall performance y relied on>its ins ection process tofindicate when safety has begun-to show a verse trends. f 0n;the basis of inspection program results, P ' icy Statement The 9C f: concerned with the potential i~ pact of utility r=tructur499-en public health and z fety.
The NRC has not fc W c0=istent re btiom hip betwccr a licc= ce' financial health and gencr:1 indicator: Of z fety such :
the MC3 Systematic Azczment of Licc=ce Perfor=nce (SALP).
Thus. the N9C h0 traditionally relied on it; impcction preccz to indicate wher zfety perfor ance h= begun to show adver:0 trends--B :cd on impccticr program Fesst-s-the NRC can take ap]ropriate action, including, ultimately, plant shutdown, to protect public lealth and safety.
However, if a plant is permanently shut down, that plant's licensee (s) may no longer have access to adequate revenues or other sources of fundspr decommissioning the facility.
i If rate deregulation and organizational diveatiture occur concurrently with the shutdown of a' nuclear plant either by NRC action or by a licensee's economic decision. that licensee may not be able to provide adequate assurance of decommissioning funds.
Thus.' the?NRC believes that its concerns about deregulation and restructuring lie F 2filysin the area 8of adequacy of decomissioning funds _ urve-Mure of rccent e.gric=0 with sa"^ Of its Iwrac= thc W.? R Mcrc=ingly ccaccr70d 20ut'the )otential effect that
. economic deregulation may have on operational saf. y, tr N9C bel 4cv= that 3
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UNITED STATES NUCLEAR REGULATORY COMMISSION g
WASHINGTON. D.C. 20555-0001 g
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July 10, 1997 j
OFFICE OF THE rD+ G &
SE C7.E TARY MEMORANDUM TO:
L. Joseph Callan Exec i
Di ector for Operations
/o
-FROM:
Jo Hoy
, Secretary t
SUBJECT:
S FF REQUIREMENTS - SECY-97-117 - FINAL POLICY STATEMENT ON RESTRUCTURING AND ECONOMIC DEREGULATION OF THE ELECTRIC UTILITY INDUSTRY The Commission has approved issuance of the final policy subject to the changes to the Federal Recister notice statement listed below.
The following revisions are provided to address the Commission decisions in SECY-97-102, on securitization and the Commission's regulatory authority on determining the rate of accumulation of decommissioning funds.
1.
On page 8, at the end of the first full paragraph, add:
"Also independently of economic deregulation, the NRC is striving to make its regulatory program as efficient and effective as possible - through use of risk analysis and other techniques - so that the resources of the agency and of licensees are devoted to the most safety-significant matters."
2.
On page 8, delete the first sentence in the second full paragraph, "The NRC will consider evaluating FAA's experiences for lessons learned."
3.
On page 11, revise the fourth sentence to read:
"The NRC will be evaluate 4ng additional rulemaking, sieparate fron(lthe'proposedErul'emakingTonifinanciaKassurance requirementsLforldecomrissioningp'to'deEermine whether enhancements to iti financihl'~' qualification
~
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requirements are necessary in anticipation that some of he power reactor licensees will no longer be " electric utilities."
SECY NOTE:
THIS SRM, SECY-97-117, AND THE COMMISSION VOTING RECORD CONTAINING THE VOTE SHEETS OF ALL COMMISSIONERS WILL BE MADE PUBLICLY AVAILABLE 5 WORKING DAYS FROM THE DATE OF THIS SRM.
f l bt& (d'l 5
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. 4.
On page 11, in the fifth sentence, reference to the
" action plan" should be removed or it should indicate how the public may access the action plan.
5.
On page 12, revise the first two sentences of the first full. paragraph to read:
"With respect to the issue of decommissioning!and stranded costs, the h"'C docc cct h n fjU9icdidEd!n'Sc detcrmice whethcr, to what degrcc, or from whom cuch coct chculd hc cc11ccted.
Strccded ccct rcccic q is the prc:incc ci Ctat cod "cdcr:1 rc;c rcgulctor manylstiatoslarsEc6niidering%sucsicisisatilon as:atnontbypassable':scharge aschanismit6sfundsth(
T recoveryiotfdecommisisionihs js andsothsristranded Teosts L Thel NRCc believes f that?;securit'izationthseli the) potential ^
to@rovidelanfacdeptabisEmeth6d#6fidscommisiiosing fundinglassuranceMalthoughiothssmethanismalthat' ~
involvei non vbypas.sabley charges;[mayj provide ( comparable levelsToffassurancetandEshould?nottbssexcludedy.from considsrationibyfststefauthoritiesi "Thelast two sentences"in"the' paragraph"should"be deleted.
6.
On page 12, last line, replace ' retrospective' with
' deferred.'
7.
On page 23, line 12, delete the word 'primarily' and add an
's' to ' area.'
In line 13, delete the period and the remainder of the line through and including the word 'about' in the next line and insert the word
'and.'
8.
On page 27, at the end of the second full paragraph, add 'However, the Commission also reserves the i
flexibility to take appropriate steps in order to assure a licensee's adequate accumulation of decommissioning funds.'
(EDO)
(SECY Suspense:
8/29/97) cc:
Chairman Jackson Commissioner Dicus Commissioner Diaz Commissioner McGaffigan OGC CIO CFO OCA
.OIG Office Directors, Regions, ACRS, ACNW, ASLBP (via E-Mail)