ML20155C720

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

ML20155C720
Person / Time
Site:	Oyster Creek
Issue date:	10/29/1998
From:	Thomas C NRC (Affiliation Not Assigned)
To:	Linky R AFFILIATION NOT ASSIGNED
Shared Package
ML20155C628	List: ML20155C624 ML20155C648 ML20155C666 ML20155C672 ML20155C684 ML20155C688 ML20155C698 ML20155C702 ML20155C705 ML20155C709 ML20155C720 ML20155C725 ML20155C730 ML20155C737 ML20155C748
References
NUDOCS 9811020325
Download: ML20155C720 (1)

Text

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' Mr. Robert E. Linky October 29, 1998

. 1007 AnchorWay Forksd Rivsr, NJ 08731

Dear Mr. Linky:

I have been asked to respond to your letter to Assemblyman Connors, dated September 3,-1998, ,

regarding the possible closure of Oyster Creek Nuclear Generating Station (OCNGS) and the '

possible impact that closure may have on the enonomy and the environment of the community.

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Primarily because of the established economic regulatory process, the U.S. Nuclear Regulatory Commission (NRC) has exercised limited financial oversight of electric utility licensees. The l 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 l adequately finance safe operation and decommissioning of their nuclear power plants.

1 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 and

, continue 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.

, With respect to some other issues you raised, and as indicated by your 9th District representatives in a letter to you dated September 22,1998, 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 cafe operation of OCNGS until a final decision is made regarding the future operation of the facility.

Sincerely, Orfeinalsigned byr Cecil O. Thomas, Director Project Directortae 1-3 Division of Reactor Projects - 1/II Office of Nuclear Reactor Regulation

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