ML20196D437

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Discusses Concerns Re Announced Asset Transfer Between Firstenergy Corp & Duquesne Light Co
ML20196D437
Person / Time
Site: Beaver Valley, Davis Besse, Perry
Issue date: 11/25/1998
From: Collins S
NRC (Affiliation Not Assigned)
To: Kotecki D
UTILITY WORKERS UNION OF AMERICA
References
NUDOCS 9812020238
Download: ML20196D437 (7)


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UNITED STATES I

NUCLEAR REGULATORY COMMISSION 6 M)#

WASHINGTON, D.C. 3000H001

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November 25, 1998 Mr. David T. Kotecki, President Local 270, Utility Workers Union of America 4205 Chester Avenue Cleveland, Ohio 44103

SUBJECT:

CONCERNS RELATED TO THE ANNOUNCED ASSET TRANSFER BETWEEN FIRSTENERGY CORPORATION AND DUQUESNE LIGHT COMPANY

Dear Mr. Kotecki:

Thank you for your letter of October 23,1998, to Dr. Shina Jackson of the U.S. Nuclear Regulatory Commission (NRC). In your letter, you cite the re, ently announced asset transfer agreement between FirstEnergy Corporation and Duquesne Li/1 Ompany.

According to the FirstEnergy press release dated October 15,1998, an agreement in principle has been signed that would result in the transfer nf 1,436 MW owned by Duquesne Light Company at eight generating units (both nuclear and fossil fuel) in exchange for 1,298 MW at three generating units (all fossil fuel) owned by FirstEnergy electric utility operating companies.

The agreement would transfer Duquesne Light's partial ownership of the Perry Nuclear Power Plant and the Beaver Valley Power Station to FirstEnergy. As a result, FirstEnergy, whl h i

already owns 100 percent of the Davis-Besse Nuclear Power Station, will own 100 percent of both Perry and Beaver Valley. FirstEnergy's Avon Lake, New Castle, and Niles fossil fuel i

facilities will be transferred to Duquesne Light. Consistent with Duquesne Light's recently announced plans to divest itself of its generating assets, Duquesne Light is expected to auction these facilities within the next six months. As stated in the press release, Duquesne Light has included assurances that FirstEnergy employees will be treated fairly. A definitive agreement on the exchange of assets is expected by the end of the year.

In your letter, you focus on the role and involvement of the NRC in the areas of transmission, service reliability, and treatment of FirstEnergy employees. Specifically, you cite the following f/

concerns:

(1)

How Duquesne Light Company plans to resolve labor-related issues 7)/

(2)

How the sale of the Avon Lake Plant will affect service in Northeast Ohio (3)

How the transfer of transmission assets will affect service in Northeast Ohio (4)

NRC involvement to ensure that union members are being treated fairly as indicated in the press release (5)

NRC involvement to ensure service reliability in Northeast Ohio 9812O20238 981125 PDR ADOCK 05000334 P

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Mr. Kotecki As stated in the FirstEnergy press release, the NRC is one of several regulatory agencies that must review and approve the proposed transfer of assets before implementation. However, the areas of concem cited in your letter fall outside NRC's jurisdiction. In this regard, I would like to describe the review process that will be conducted by NRC and how you may intervene or comment, if you so desire:

The proposed transfer of assets will require a transfer of ownership for the Peny and Beaver Valley facilities. Duquesne Light Company, which is currently the operator of Beaver Valley and a co-owner of both Beaver Valley and Perry, will be removed from the operating licenses of both facilities. FirstEnergy will become the full owner and operator of both facilities. NRC staff review and approval, pursuant to 10 CFR 50.80 and 50.90, will be required.

Since the staff has not received the applications necessary for the above transfer of ownership, it is not currently performing a review of this proposal. When the proposal is received, the first staff action will be to publish a " Notice of Consideration of issuance of Amendment to Facility Operating License, Proposed No Significant Hazards Consideration Determination, and Opportunity for a Hearing," in the Federal Reaister. The period for public comment willlast thirty (30) days. The staffs review will focus on verifying the financial and technical qualifications of the new ownership to ensure adequate protection of public health and safety from a radiological perspective. As such, the staffs review will not include the areas cited in your letter.

FirstEnergy has indicated a desire to hold a public meeting in Rockville, Maryland, during late November or early December 1993 in order to discuss the proposed action with the staff. This meeting will be noticed as a public meeting. Public meetings are announced on the Intemet at http://www.nrc. gov /NRC/PUBLIC/ meet.htm/#NRR or by calling 1-800-952-9674. Meetings between NRC technical staff and applicants or licensees are open to interested members of the public, petitioners, intervenors, or other parties to attend as observers pursuant to " Commission Policy Statement on Staff Meetings Open to the Public," 59 Federal Reaister 48340, September 20,1994.

In conclusion, we appreciate your letter and concems. However, as previously indicated, the concerns are outside NRC's jurisdiction. Concems involving treatment of employees should be directed to the U.S. Department of Labor at the Office of the Administrator, Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Room 63502,200 Constitution Avenue, N.W., Washington, D.C. 20210. Concems involving electrical service, reliability, and transfer of transmission assets in Northeast Ohio should be directed to the Public Utilities Commission of Ohio,180 East Broad St., Columbus, Ohio 43215.

Please feel free to contact me or my staff if we can be of any further assistance.

i Sincerely,

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Samuel J. Collins, Director Office of Nuclear Reactor Regulation

As statrd in tha FirstEnsrgy prsss r:12 ass, ths NRC is one of ssvaral regulatory agsncias that must ravi w and approva thn propostd transfsr of ass:ts befora impismantation. Howevsr, th3 craas of concem cited in your letter fall outside NRC's jurisdiction. In this regard, I would like to describe the review process that will be conducted by NRC and how you may intervene or comment, if you so desire.

The proposed transfer of assets will require a transfer of ownership for the Perry and Beaver Valley facilities. Duquesne Light Company, which is currently the operator of Beaver Valley and a co-owner of i

both Beaver Valley and Perry, will be removed from the operating licenses of both facilities. FirstEnergy j

will become the full owner and operator of both facilities. NRC staff review and approval, pursuant to 10 CFR 50.80 and 50.90, will be required.

Since the staff has not received the applications necessary for the above transfer of ownership, it is not currently performing a review of this proposal. When the proposalis received, the first staff action will be l

to publish a " Notice of Consideration of issuance of Amendment to Facility Operating License, Proposed l

No Significant Hazards Consideration Determination, and Opportunity for a Hearing," in the Federal l

Regialer. The period for public comment will last thirty (30) days. The staff's review will focus on l

verifying the financial and technical qualifications of the new ownership to ensure adequate protection of public health and safety from a radiological perspective. As such, the staff's review will not include the i

areas cited in your letter.

FirstEnergy has indicated a desire to hold a public meeting in Rockville, Maryland, during late November or early December 1998 in order to discuss the proposed action with the staff. This meeting will be noticed as a public meeting. Public meetings are announced on the Internet at http://www.nrc. gov /NRC/PUBLIC/ meet.htm/#NRR or by calling 1-800-952-9674. Meetings between NRC technical staff and applicants or licensees are open to interested members of the public, petitioners, intervenors, or other parties to attend as observers pursuant to " Commission Policy Statement on Staff Meetings Open to the Public," 59 Federal Reaister 48340, September 20,1994.

In conclusion, we appreciate your letter and concerns. However, as previously indicated, the concems are outside NRC's jurisdiction. Concerns involving treatment of employees should be directed to the U.S. Department of Labor at the Office of the Administrator, Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Room 63502,200 Constitution Avenue, N.W.,

Washington, D.C. 20210. Concerns involving electrical service, reliability, and transfer of transmission assets in Northeast Ohio should be directed to the Public Utilities Commission of Ohio,180 East Broad St., Columbus, Ohio 43215.

Please feel free to contact me or my staff if we can be of any further assistance.

Sincerely, ORIG. SIGNED BY BRIAN W. SHFRON for Samuel J. Collins, Director Office of Nuclear Reactor Regulation DOCUMENT NAME: G:\\PD3-3\\ PERRY \\G19980.645 To receive e copy of this document, indicate in the bon: 'C' = Copy without enclosures "E" = Copy with enclosures "N" = No copy 0FFICE PM:PDIII-jb LA:PDIII-2 O/

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EDO Principal Correspondence Control FROMt DUE: 11/12/98 EDO CONTROL: Gl9980645 DOC DT: 10/23/98 l

FINAL REPLY:

l David T. Kotecki l Utility Workers Union of America - Local 270 Mt I

Chairman Jackson FOR SIGNATURE OF :

    • GRN CRC NO: 98-1003 Collins, NRR l DESC8 ROUTING:

FIRST ENERGY AND DUQUESNE LIGHT COMPANY TRANSFER Travers GENERATING ASSETS -- PERRY POWER PLANT AND THE DEDE l

AVON LAKE PLANT Thompson Norry Blaha DATE: 10/29/98 Burns Caldwell, RIII Cyr, OGC ASSIGNED TO:

CONTACT:

NRR Collins m

SPECIAL INSTRUCTIONS DR REMARKS:

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DUE TO NRR DIRECTOR'S OFFICE w-eoe BY

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OFFICE OF THE SECRETARY 4

CORRESPONDENCE CONTROL TICKET CRC-98-1003 LOGGING DATE: Oct 28 98 PAPER NUMBER:

ACTION OFFICE:

EDO AUTHOR:

DAVID KOTECKI AFFILIATION:

OHIO ADDRESSEE:

CHAIRMAN JACKSON

- LETTER DATE:

Oct 23 98 FILE CODE: IDER S PERRY

SUBJECT:

CONCERN 5 RE DUSQUESENE LIGHT CO. RE PERRY POWER PLANT AND THE AVON LAKE PLANT ACTION:

Direct Reply

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DISTRIBUTION:

CHAIRMAN, COMRS.

SPECIAL HANDLING: SECY TO ACK CONSTITUENT:

NOTES:

OCM #15378 DATE DUE:

Nov 12 98 SIGNATURE:

DATE SIGNED:

AFFILIATION:

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LOCAL 270 l

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UTILITY WORKERS NION OF AMERICA U

AFFILIATED WITH THE AFL-CIO LIGHT-HEAT POWER-WATER I

l CLEVELAND, OHIO 44103-3615 4205 CHESTER AVENUE i

TELEPHONE:(218)8810004 FAX:(218) 88M333 REC'D Bf SECY October 23,1998 l.

28 G f G.4.130 Dr. Shirley Jackson U.S. Nuclear Regulatory Commission One White Flint North 11555 Rockville Pike s

Rockville, Maryland 20852-2738

Dear Dr. Jackson:

Local 270, of the Utility Workers Union of America, AFL-CIO, is the exclusive I

bargaining representative in all matters pertaining to wages, hours, working and all other conditions of employment for all Operating, Maintenance and Construction employees.

Through the Internet and local newspapers, we have heard that FirstEnergy and Duquesne Light Company are going to transfer generating assets, and Duquesne plans to auction off their assets. These transfers of assets include our members at the Perry Power Plant and the Avon Lake Plant. The assets that are to be auctioned will include our members at the Avon Lake Plant. We also understand that transmission assets are being transferred into a new subsidiary called America Transmission Systems Inc.

in the filing with the Securities and Exchange Commission, we understand that in regard to labor, the parties will cooperate to resolve labor related matters, including, with respect to Union contracts, workforce levels, severance, and employee benefits, in a manner that treats employees fairly and equitably apportions any related costs between the parties. The defm' itive agreements for the Generation exchange shall clearly define and equitably apportion the rights and obligations of the parties regarding these matters.

One of our concerns is how the Duquesene Light Company plans on resolving this issue?

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local 270 and FirstEnergy are currently involved in several legal battles pertaining to the Company's illegal implementation of their terms and conditions of employment. We have filed charges with the National Labor Relations Board seeking 10(j) injunction relief. We have a suit filed in Federal Court pertaining to labor issues and many of our illegally laid-off members have sought legal counsel to address their individual concerns.

Another one of our concerns is how the sale of this plant will affect the service in Northeast Ohio? Local 270, along with our National Union, has been active on the deregulation front. This area suffered a shortage of power this summer and our fear is that this could add to the problem.

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l-Dr. Shirley Jackson U.S. Nuclear Regulatory Commission October 23,1998 How will the transfer of transmission assets affect service in this area?

What investigation or authority is the U.S. Nuclear Regulatory Commission conducting to ensure that our members are going to be treated fairly as they claim?

What investigation or authority is the U.S. Regulatory Commission conducting to ensure the service reliability in the affected area?

We would greatly appreciate any and all information you could supply to us pertaining to these matters.

Sincerely, e.

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David T. Kotecki President Local 270, U.W.U.A.

DTK/asq opeiu 1794 cc:

Willard Holland David D. Marshall Duquesne Light Company i

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Mr. Kotscki November 25, 1998

,s.

As stat:d in ths FirstEn:rgy press relcaso, the NRC is ons of sovsral regulatory agencies that must ravi:w and approve the proposed transfer of assets before implementation. However, the areas of concern cited in your letter fall outside NRC's jurisdiction. In this regard, I would like to describe the review process that will be conducted by NRC and how you may intervene or comment, if you so desire.

The proposed transfer of assets will require a transfer of ownership for the Perry and Beaver Valley facilities. Duquesne Light Company, which is currently the operator of Beaver Valley and a co-owner of both Beaver Valley and Perry, will be removed from the operating licenses of both facilities. FirstEnergy will become the full owner and operator of both facilities. NRC staff review and approval, pursuant to 10 CFR 50.80 and 50.90, will be required.

Since the staff has not received the applications necessary for the above transfer of ownership, it is not currently performing a review of this proposal. When the proposal is received, the first staff action will be to publish a " Notice of Consideration of Issuance of Amendment to Facility Operating License, Proposed No Significant Hazards Consideration Determination, and Opportunity for a Hearing," in the federal Register The period for public comment will last thirty (30) days. The staff's review will focus on verifying the financial and technical qualifications of the new ownership to ensure adequate protection of public health and safety from a radiological perspective. As such, the staff's review will not include the areas cited in your letter.

FirstEnergy has indicated a desire to hold a public meeting in Rockville, Maryland, during late November or early December 1998 in order to discuss the proposed action with the staff. This meeting will be noticed as a public meeting. Public meetings are announced on the internet at http://www.nrc. gov /NRC/PUBLIC/ meet.htm/#NRR or by calling 1-800-952-9674. Meetings between NRC technical staff and applicants or licensees are open to interested members of the public, petitioners, intervenors, or other parties to attend as observers pursuant to " Commission Policy Statement on Staff Meetings Open to the Public," 59 Federal Register 48340, j

September 20,1994.

In conclusion, we appreciate your letter and concerns. However, as previously indicated, the concerns are outside NRC's jurisdiction. Concerns involving treatment of employees should be directed to the U.S. Department of Labor at the Office of the Administrator, Wage and Hour Division, Employment Standards Administration, U.S. Department of Labor, Room 63502,200 Constitution Avenue, N.W.,

Washington, D.C. 20210. Concerns involving electrical service, reliability, and transfer of transmission assets in Northeast Ohio should be directed to the Public Utilities Commission of Ohio,180 East Broad St., Columbus, Ohio 43215.

Please feel free to contact me or my staff if we can be of any further assistance.

Sincerely, ORIG. SIGNED BY BRI AN W. SHFRON for Samuel J. Collins, Director l

Office of Nuclear Reactor Regulation l

DOCUMENT NAME: G:\\PD3-3\\ PERRY \\G19980.645 To receive a copy of this document, indicate in the boa:

"C" = Copy without enclosures "E" = Copy with enclosures "N" = No copy 0FFICE PM:PDIII-b LA:PDIII-2 0./

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