ML20151X201
| ML20151X201 | |
| Person / Time | |
|---|---|
| Site: | Oyster Creek |
| Issue date: | 09/11/1998 |
| From: | Collins S NRC (Affiliation Not Assigned) |
| To: | Most D AFFILIATION NOT ASSIGNED |
| References | |
| NUDOCS 9809160308 | |
| Download: ML20151X201 (7) | |
Text
Mr. D;vid Msst September 11, 1998 go-af y 240 Juniper Lana Forkrd Riv:r, NJ 08731
Dear Mr. Most:
I have been asked to respond to your letter to Govemor Whitman, dated July 6,1998, regarding the possible closure of Oyster Creek Nuclear Generating Station (OCNGS) and the possible impact that closure may have on careers of OCNGS employees, the economy of the community, and the safety of the nuclear program as a result of the increased competition in a deregulated environment.
Primarily because of the established economic regulatory process, the U.S. Nuclear Regulatory Commission (NRC) has exercised limited financia! oversight of electric utility licensees. The electric industry's move away from traditional rate-based regulation toward increased competition in a deregulated marketplace could have an adverse impact on the long-term ability of utilities to adequately finance safe operation and decommissioning of their nuclear power plants.
Although the NRC is not usually involved in economic or rate regulation, over the years the agency has recognized a possible relationship between adequate financing and safe operations.
Licensees' efforts to reduce spending could result in smaller, less experienced workforces; reductions in maintenance and capital budgets; shorter refueling outages, during which certain maintenance is performed; and a decline in training resources. The NRC must ensure that economic pressures do not result in reduced safety margins at operating nuclear plants and do not impair a licensee's ability to fully finance decommissioning at a plant after it is shut down.
It also should be noted that the staff has historically not found a strong correlation between levels of operation and maintenance (O&M) and capital additions expenditure and measures of safety performance. Many plants have increased capacity factors and reduced O&M costs while demonstrating excellent safety performance. The NRC will continue to monitor OCNGS through the inspection process and other plant performance indicators used to assess safe plant operation.
With respect to your other issues and as indicated by your 9th District representatives in a letter to you dated August 19,1998, there is considerable activity at the State level to develop long-term strategies to address the socioeconomic and environmental issues surrounding the OCNGS facility.
I hope this letter is.ssponsive to your concems regarding the safe operation of OCNGS until a final decision is made regarding the future operation of the facility.
Sincerely, 9009160308 980911 ORIGINAL SIGNED BY t
PDR ADOCK 05000219 Il H
PDR Samuel J. Collins, Director cc: NJ Delegation Office of Nuclear Reactor Regulation
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DOC DT: 08/19/98 FINAL REPLY:
'S:nster Leonard T. Connors, Jr.
Joffrcy W. Moran ChriGtopher J. Connors Stato of New Jersey
-TO:
David Most, NJ FOR SIGNATURE OF :
.DESCs ROUTING:
OYSTER CREEK NUCLEAR GENERATING STATION Callan Travers Thompson Norry Blaha Burns DATE: 09/02/98 Bangart, SP Miller, RI ASSIGNED TO:
CONTACT:
i NRR Collins SPECIAL INSTRUCTIONS OR REMARKS:
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OFFICE OF THE SECRETARY CORRESPONDENCE CONTROL TICKET PAPER NUMBER:
CRC-98-0806 LOGGING DATE: Sep 1 98 ACTION OFFICE:
EDO AUTHOR:
JEF MORAN & CHRIS'CONNORS
' AFFILIATION:
NEW JERSEY ADDRESSEE:
DAVID MOST LETTER DATE:
Aug 19 98 FILE CODE: IDR 5 OYSTER CREEK
SUBJECT:
OYSTER CREEK NUCLEAR GENERATING STATION ACTION:
Direct Reply DISTRIBUTION:
CHAIRMAN, COMRS, SECY/ RAS SPECIAL HANDLING: SECY TO ACK CONSTITUENT:
NOTES:
OCM #14754 DATE DUE:
Sep 16 98 SIGNATURE:
DATE SIGNED:
AFFILIATION:
i EDO -- G980537
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STATE OF NEW JERSEY I
LEONAhD T. CONNORS, JR.
97H DISTRICT LEGISLATIvs OrrtCzS JEFFREY W. MORAN I
SENATOR - 97H DISTRICT 620 West LACEY ROAD ASSEMBLYMAN - 97H DISTRICT Fonxzo RIvsa, NJ 08731 CHRISTOPHER J. CONNoRS 609-693-6700 ASSEMBLYMAN - 97H DISTRICT August 19,1998 Mr. David Most 240 Juniper Lane Forked River, New Jersey 08731 i
Dear Mr. Most:
This brief note is to acknowledge a copy of your recent letter to Govemor Christine Todd Whitman, received at our Legislative Office on August 17,1998.
By way of this reply, our Delegation would like to reach out to convey to you our appreciation for your interest and concerns about the future of the Oyster Creek Nuclear Generating Station, the impact on your career and the effect of the possible decommissioning of this facility on your community. We completely share these and many other profound concerns.
That is why we have pushed so hard for legislation to establish a Task Force for the decommissioning of this Nuclear Generating Station to develop long-term strategies to address the socioeconomic and environmental issues surrounding this facility.
As you know, the overall oversight of the Oyster Creek Nuclear Generating Station rests within the Federal Nuclear Regulatory Commission. The NRC has the responsibility to oversee this facility during its operation and eventual closure. In an effort to try to be of assistance to you in looking into your concems as they pertain to the NRC, by cony of thic renIv. we are forwardine a cony of your letter to NRC Commiccioner Shirlev Ann Jackson. This convevance formally reauests Commiccioner.Inckson to thorouehly review the tecnes vou tal$t.
In the area of state responsibility, you may rest assured that many efforts are underway to
- establish a deregulation process for the electric industry that both reflects the changing marketplace for electricity, as well as the needs of consumers, based upon federal laws and court decisions. You will also be encouraged to know that Lacey Township's state funding,in lieu of property taxes for this facility, has been safeguarded by recent changes in state law.
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In an effort to obtain some perspective for you as to New Jersey's role in this process and what steps are underway here for electric deregulation, etc., by copy of this reply. we are 22 : 6 gr, p g sending a copy of your letter to Office of Legislative Services Director Glenn E. Moore. III.
b This transmittal authorizes Director Moore to assinn a snecialist at OLS to out tonether a comnrehensive briefine on these very complex issues.
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Printed on Recycled Paper
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.f' August 19,1998 Mr. David Most Page 2 Thank you, once again, for your proactive efforts as a concerned citizen and employee of Oyster Creek. We welcome this opportunity to work with you to obtain the latest available information on this evolving issue of concem to each and every citizen of our state.
Please note, we will keep you apprised as findings are received from the NRC and OLS.
Best regards.
Sincerely,
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LEONARD T. CONNORS, JR. '
,Q Senator-9th District l.'
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STOPHE ONNORS (AdeMan. MORAN
- 9th District Asseinblyman - 9th District LTCJR/JWM/CJC/gpl/cmn c: Honorable Shirley Ann Jackson, Commissioner, Federal Nuclear Regulatory Commission Director Glenn E. Moore, III, Office of Legislative Services (With Enclosure) e
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Mr. Dave Most
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240 JuniperLane Forked River, NJ 08731 (609) 971-1018 i
1 July 6,1996 e
Govemor Chn'stine T;xtd Whitman 125 West State St.
i P.O. Box 001 Trenton, NJ 08625
Dear Govemor Whitman:
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t am wniting this letterin regard to the closure of Oyster Creek Nuclear Generating Station, with hope that you will visit our plant and realize the impact it will have on the state of New Jersey if Oyster Creek shuts down. Oyster Creek provides good employment opportunities for fulltime and contractor personnel.
Oyster Creek employee's bolster Ocean County with millions of e ollars in revenue. The employees of Oyster Creek play an integralpart in their communities as leaders and volunteers. Oyster Creek is a viable clean source of energy. The onpacity factor is high, and recently received a high INPO rating.
Recently, at Oyster Creek we have had severalgeneration emergencysletts, which require us to reduce any work that woukt shut the plant down because of the large load demand. The problem of genenstion supply shortages are not unique to New Jersey. The Midwest and New England states too are short of generation and elednc i
customers are being held hostage io intiated eledrical costs when load demands are at their peak. Generator owners in the past were required to han a resern forpeak loads, this is no longer the case wrth deregulation Our 1
current administration has faised to address the Nuclear Base loadissue. This is going to cause a domino effect for i
early plant cbsures, in tum causing a supply and demandissue. This could create brown outs and possibly black outs. Who willpay tbr these ently-retired plants to decommission?
It seems apparent to me, as ne erode our base load generation we also willhave to increase production of our conventional plants such as coal and gas plants. Our energy program needs sericus attention by our govemment.
Currently there are no plans to build any nuclear base load plants in the United States. What generator owner would be so boldin this indecisive environment? The issue o am tellemng to is the irresponsrMity of the '
l government to fultfllits obhgation to store the spent fuel. Also, the govemment has 16iled to recognize the benent of i
a nuclear program to our environment. It is my opinion that nuclear plants competing against conventional plants are a grave mistake because safety is always paramountin a nucles? program. I am not advocating we let Nuclear plants run on a free leash when it cornes to cost, I am saying lets implement a fairplaying fleid.
l Just imagine when competition becomes necce this will result in some kind of cut backs. Where willthe cut backs i
be? Could the competition jeoparutze the safety of the nuclear program?
l As a proud republican I feelit is my duty to inform you of these issues so you can ensure the State of New Jersey i
has a well thought out s*rategyin respect to a deregulation plan that makes sense. Which willprovide reliable safe and clean power to all, even the impoverished that reside in New Jersey.
i in addition what will happen to Lacey Townships revenue from the state when Oyster Creek retires earty and no longeris stigmatized of housing a nuclearplant?
Do you think that our neighbonng towns and county's willsit back and let Lacey Township receive that money when the fuel no longer sits in Forked River 1 i
Govemcr, my fellow workers are concemed about their future at Oyster Creek and need to know if New Jersey can
. affor0 to loose another base load plant Sincerely yours.
I
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