ML20197H280
| ML20197H280 | |
| Person / Time | |
|---|---|
| Issue date: | 11/12/1998 |
| From: | Shirley Ann Jackson, The Chairman NRC COMMISSION (OCM) |
| To: | Hoyle J NRC OFFICE OF THE SECRETARY (SECY) |
| Shared Package | |
| ML20197H278 | List: |
| References | |
| SECY-98-153-C, NUDOCS 9812140038 | |
| Download: ML20197H280 (2) | |
Text
--
e NOTATION VOTE RESPONSE SHEET TO:
John C. Hoyle, Secretary FROM:
CHAIRMAN JACKSON
SUBJECT:
SECY-98-153 - UPDATE OF ISSUES RELATED TO NUCLEAR POWER REACTOR FINANCIAL QUALIFICATIONS IN RESPONSE TO RESTRUCTURING OF THE ELECTRIC UTILITY INDUSTRY w/ comments Approved X
Disapproved Abstain Not Participating Request Discussion COMMENTS:
SEE ATTACHED COMMENTS i
- J 2!828 Ma!o' CORRESPONDENCE PDR S'IGNATURE '
Release Vote / X /
November 12, 1998 DATE Withhold Vote /
/
Entered on "AS" Yes No Wl? l40035
j 4
CHAIRMAN JACKSON'S COMMENTS ON SECY-98-153, UPDATE OF ISSUES RELATED TO 1
NUCLEAR POWER REACTOR FINANCIAL QUALIFICATIONS IN RESPONSE TO RESTRUCTURING OF THE ELECTRIC UTILITY INDUSTRY
^
l approve staff's proposed actions to continue to monitor license financial qualifications for operating plants within the existing regulatory framework. Because the financial qualifications regulations allow the NRC to request a licensee to submit additional or more detailed information to determine whether power reactor licensees remain financially qualified, I believe that it is unnecessary, at this time, to proceed with a rulemaking to impose additional financial reporting requirements (i.e., notification of any proposed assets transfers from the licensee to its parent or related company and/or systematically reporting that liquid assets are sufficient to cover safety expenditures during extended outages). Notwithstanding, the transition period to full rate deregulation willlikely continue for a number of years and lessons-leamed from early state actions on deregulation have not been fully studied or examined. The staff should continue to promptly advise the Commission of the need to clarify ambiguities in our regulations covering financial qualification which could potentially lead to a reduction of financial responsibility of licensees.
Further, as operational safety is ensured, in part, through appropriate financial qualifications and by thejudicious expenditure of resources at a given facility, the staff should consider whether it is possible to develop indicators of responsible financial management in a manner analogous to the Commission's position on measuring the effectiveness of management through inference.
Indicators may be avai'able which infer responsible financial management. Potential examples include overtime usage, deferred training, backlogged work and the amount of maintenance on risk-significant equipment which is postponed awaiting parts. The development of any such indicators should be fully integrated with the staff's ongoing efforts in the development of the assessment and risk-informed baseline inspection program.
I approve the issuance of the Standard Review Plan on Power Reactor Licensee Financial f
Qualifications and Decommissioning Funding Assurance which reflects current NRC regulations and policy. On October 9,1998, the Nuclear Energy Institute submitted comments on the proposed actions presented in this paper. Staff should refine the SRP as appropriate to further clarify the NRC position on established and newly-formed entities to minimize licensee misunderstanding of NRC requirements and policies regarding corporate restructuring.
The SRP should also be revised to reference the draft SRP on Foreign Ownership, Control and Domination. The issuance of this final SRP should not be further delayed to incorporate the draft guidance document on foreign ownership, control and domination. I believe that it would be more effective to consider merging the two guidance documents following the public comment period and the resolution of comments on the SRP on Foreign Ownership, Control and Domination.
Additionally, to ensure that license transfer guidance is appropriately disseminated, the staff should prepare an overarching document to reference other key guidance documents that are used in the process to review license transfer applications which would include but not be limited to, the SRP on technical qualifications, and the SRP on antitrust reviews.