ML20154C957

Responds to to Senator Connors Re Possible Closure of Oyster Creek Nuclear Generating Station & Possible Impact That Closure May Have on Economy & Environ of Community

ML20154C957
Person / Time
Site:	Oyster Creek
Issue date:	10/02/1998
From:	Collins S NRC (Affiliation Not Assigned)
To:	Kube B AFFILIATION NOT ASSIGNED
References
NUDOCS 9810070084
Download: ML20154C957 (11)

Text

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t Mr. Brhn Kubs [A-3/7 l 1

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137 Topstil Lino  !

Man:bawkin, NJ 08050

Dear Mr. Kube:

I have been asked to respond to your letter to Sent.or Connors, dated August 28,1998, regerding the possible closure of Oyster Creek Nuclear Generating Station (OCNGS) and the possible impact that closure may hose on the enonomy and the environmcnt of the conimunity.

Primarily because of the established economic regulatory process, the LI.S. Nuclear Regulatory Commission (NRC) has exercised limited finsncist oversight cf elec.tric utility licensees. The electric indusity's move away from traditional rate-based regulation toward increaseJ 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.  !

i 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. 1 Licensees' efforts to reduce spending could result in smaller, less-experienced workforces; l reductions in maintenance and capital budgets; shorter refue!!ng outages, during which certain mair6tenance is performed; and a decline in training resources. The NRC must ensure that economic pressures do not resu!!in reduced sv.fety 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. j It also should be noted that the staff has historically not found a strong correlation between levels cf operction and maintenance (O&M) and capital additions expenditure and measures of safety l performance. Many plaats have increased capacity factors and reduced O&M costs and l continues to demonstrate 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. l With respect to some other issues you raised, and as indicated by your 9th District representatives in a letter to you dated August 31,1998, 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 responsive to your concems regarding the safe operation c. 4GS t.ntil a final decision is made regarding the future operation of the facility.

Sincerely, i

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9810070094 980930 PDR ADOCK 05000219 Samuel J. Collins, Director H PDR Office of Nuclear Reactor Regulation DJSTRIBUTION: See next page

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Ernest L. Blake, Jr., Esquire State of New Jersey Shaw, Pittman, Potts & Trowbridge 9th District Legislative Offices 2300 N Street, NW 620 West Lacey Road  ;

Washington, DC 20037 Forked River, NJ 08731  !

1 Regional Administrator, Region 1 J U.S. Nuclear Regulatory Commissbn 475 Allendale Road

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Mayor Lacey Township 818 West Lacey Road Forked River, NJ 08731 1

Licensing Manager j

Oyster Creek Nuclear Generating Station Mail Stop: Site Emergency Bldg.

P.O. Box 388 I Forked River, NJ 08731

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Resident inspector I clo U.S. Nuclear Regulatory Commission l P.O. Box 445 l Forked River, NJ 08731 l Kent Tosch, Chief New Jersey Department of Environmental Protection Bureau of Nuclear Engineering CN 415 Trenton, NJ 08625 I

Mr. Michael B. Roche I Vice President and Director l GPU Nuclear Corporation Oyster Creek Nuclear Generating Station l P. O. Box 388 l Forked River, NJ 08731 l

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<FROMt DUE: 10/08/98 EDO CONTROL: G980589 DOC DT: 08/31/98 Sen2 tor Leonard T. Connors, Jr. FINAL REPLY:

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Stcts of New Jersey

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4 CRC NO: 98-0889 Collins, NRR DESC:

ROUTINGi OYSTER CREEK NUCLEAR GENERATING STATION Callan 3

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, CORRESPONDENCE CONTROL TICKET PAPER NUMBER: CRC-98 0889 LOGGING DATE: Sep 22 98 ACTION OFFICE: EDO ,

AUTHOR: LEONARD CONNORS,MORAN, CON AFFILIATION: NEW JERSEY ADDRESSEE:

JAMES TAGGERT/TRI AM KOSE 4

LETTER DATE: Aug 31 98 FILE CODE:

SUBJECT:

OYSTER CREEK ACTION: ,

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' STATE OF NEW JERSEY LEONARD T. CONNORS, JR. 97H DisTniCT lea:SLATIVE OFFICES JEFFREY W. MORAN SENATOR - 97H DISTRICT 620 West LACEY ROAD ASSEMBLYMAN - STH DISTRICT FORKED Riven, NJ 08731 CHRISTOPHER J. CONNORS 609 693-0700 ASSEMBLYMAN - 9TH DISTRICT August 31,1998 Mr. James M. Taggert I l

194 Inlet Avenue ,

a Manahawkin, New Jersey 08050

Dear Mr. Taggert:

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This brief note is to acknowledge a copy of your recent letter to our 1.cgislative Office. l By way of this reply, our Delegation would like to reach out to convey to you our appreciation for your interest and concems about the future t e Oyster Creek Nuclear ,

Generating Station, the impact on jobs and careers and the ect ic effects of the possible l decommissioning of this facility on your community. We com> aly share these and many other l profound concerns. That is why we have pushed so hard for legislation to establish a Task Force l for the decommissioning of this Nuclear Generating Station to develop long-term strategies to  ;

address the socioeconomic and environmental issues surrounding this facility. To save precious l jobs and careers. To diminish the potential economic effects on many communities here in the region. .

1 As you may know, the overall oversight of the Oyster Creek Nuclear Generating Station rests within the Federal Nuclear Regulatory Conunission. The NRC has the responsibility to oversee this facility during its operation and eventual closure at some point in the future, hopefully, at the conclusion of its full licensure expectation in 2009 or beyond. In an effon to try l to be of assistance to you in looking into your concerns as they pertain to the NRC, by copy of this repiv. we are forwarding a copy of your letter to NRC Commissioner Shirlev Ann Jackson. This convevance formally requests Commissioner.Tackson to thoroughly review the issues you raise.

In the area of state responsibility, you may rest assured that many effons 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. Our Delegation led the fight to protect Lacey Township from any diminished funding of its cross o receipts and franchise revenues. $ 7 m d 5 $

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31,1998 Mr. sames M. Taggert Page 2 ,

In an effort to obtain some perspective for you as to New Jersey's ale in this process and what steps are underway here for electric deregulation, etc., by copy of this reply. we are sendine a copy of your letter to Office of Lecislative Services Senior Fiscal Analyst Georce

.L LeBlanc. This transmittal authorizes Mr. LeBlanc to out together a comprehensive briefine on these very complex issues.

Finally, the New Jersey Board of Public Utilities will play a prominent role in the decision making process to cliart Oyster C, reek's future. The input of citizens, such as yourself, merits strong consideration by the BPU during its hearing process on this facility. Therefore, we are forwarding a copy of your comments to the personal attention of BPU President Herbert Tate, Jr. This convevance formally reauests your statement to be entered into the official nublic record of testimony on thl11affli1L -

Thank you, once again, for your proactive efforts as a concerned citizen about the future cf the Oyster Creek Nuclear Generating Station. We welcome this opportunity to work with you

. ebtain the latest available information on this evolving issue of concern to each and every citeen of our state.

Please know, we will keep you apprised as findings are received from the NRC, OLS and the BPU.

Best regards.

Sincerely, .

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, LEONARD T. CONNORS JR.

f,( .', Senator - 9th District (,f [

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g JEFFREYW. MORAN CHRISTOPHER J. CONNORS Assemblyrnan - 9th District Assemblyman - 9th District LTCJR/JWM/CJC/gpl/cmn c: Honorable Shirley Ann Jackson, Commissioner, Federal Nuclear Regulatory Commission George J. l2 Blanc, Senior Fiscal Analyst, Office of Legislative Services Herbert Tate, Jr., President, Board of Public Utilities fWith Enclosure)

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. August 28,1998 New Jersey Board of Public Utilities AUG 311998 Honorable Herb Tate

Dear Mr. Tate,

Over the past ten years that I have lived in Southern Ocean County, I have seen how much the county, and Lacey Township in particular, has financially benefited from the revenues generated from the Oyster Creek Nuclear Generating Stati6n being in operation.

Many of the things that the township has now, would not have ever been possible if the Power Plant did not exist. In addition to that, the closure of Oyster Creek wou!o put close to eight hundred voters out of work, which needless to say, would put even a greater strain on the local economy. Something needs to be done and deregulation is far from being the correct answer! If this source of base load is done away with, the people of this county will be forced into getting their power from possibly an out of state supplier, which will INCREASE not decrease their BILLS. Where is there the sanity in that?

As a fellow resident of New Jersey, I hope you will agree that, betting on such an unsure thing like deregulation, should only take place at the casinos in Atlantic City, and not at the expense of the majority of the voting public!

Respectfully yours, mdf/k James M. Taggert 194 Inlet Ave.

Manahawkin, NJ 08050

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i LEONARD T. CONNORS, JR. 9TH DISTRICT LEGISLATIVE OFFICES JEFFREY W. MORAN SENATOR - 97H DISTRICT 620 WEST LACEY ROAD ASSEMBLYMAN - 9TH DISTRICT FORKED RIVER, NJ 08731 CHRISTOPHER J. CONNORS 609-693 6700 ASSEMBLYMAN - 97H DISTRICT August 31,1998 Mr. Brian Kube 137 Topsail Lane .

l Manahawkin, New Jersey 08050

Dear Mr. Kube:

This brief note is to acknowledge a copy of your recent letter to our legislative Office. l l

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 jobs and careers and the xonomic effects 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. To save precious jobs and careers. To diminish the potential economic effects on many communities here in the region. ..

As you may 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 at some point in the future, hopefully, at the conclusion of its full licensure expectation in 2009 or beyond. In an effort to try to be of assistance to you in looking into your concerns as they pertain to the NRC, by cony of this reply, we are forwarding a cony of your letter to NRC Commissioner Shirlev Ann Jackson. This conveyance formally reauests Commissioner Jackson to thoroughly review the issues you raise.

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. Our Delegation led the fight to protect Lacey Township from any diminished funding of its gross receipts and franchise revenues.

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• l August 31,1998 Mr. Brian Kube Page 2 ,

i In an effort to obtain <,ome 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 reniv. we are sendino a copy of your letter to Office of Legislative Services Senior Fiscal Analyst George J. LeBlanc. This transmittal authorizes Mr. LeBlanc to put together a comnrehensive I briefing on these very comnlex issues.

Finally, the New Jersey Board of Public Utilities will play a prominent role in the decision making process to chart Oyster C, reek's future. The input of ciWzens, such as yourself, merits strong consideration by the BPU during its hearing process on this facility. Therefore, we l are forwarding a copy of your comments to the personal attention of BPU President Herbert Tate, Jr. This convevance formnlly reauests your statement to be entered into the official public record of testimony on this facility. .

Thank you, once again, for your proactive efforts as a concerned citizen about the future of the Oyster Creek Nuclear Generating Station. We welcome this opportunity to work with you to obtain the latest available information on this evolving issue of concern to each and every citizen of our state.

Please know, we will keep you apprised as findings are received from the NRC, OLS and the BPU.

Best regards.

Sincerely, ,

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LEONARD Senator - 9th District l

T. CONNO[RS

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JEFFREY W. MORAN CHRISTOPHER J. CONNORS

/ Assemt31yman - 9th District Assemblyman - 9th District LTCJR/JWM/CJC/gpl/cmn c: Honorable Shirley Ann Jackson, Commissioner, Federal Nuclear Regulatory Commission George J. LeBlanc, Senior Fiscal Analyst, Office of Legislative Services Herbert Tate, Jr., President, Board of Public Utilities fWith Enclosure)

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