ML20198P979
| ML20198P979 | |
| Person / Time | |
|---|---|
| Site: | Seabrook  |
| Issue date: | 12/18/1997 |
| From: | Hollingworth B NEW HAMPSHIRE, STATE OF |
| To: | Shirley Ann Jackson, The Chairman NRC COMMISSION (OCM) |
| Shared Package | |
| ML20198P871 | List: |
| References | |
| NUDOCS 9801220307 | |
| Download: ML20198P979 (5) | |
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The Senate of the State of New Hampshire s
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107 N. Main Street, Room 302, Concord, N.H. 03301-4951 Oh 2:1-2ti:
BEVERLY A.HOLLINGWORTH
-TTY /lDD Dutrat 21 -
t Mao 7E2%4 December 18,1997 Shirley Ann Jackson, Chairman United States Nuclear Regulatory Commision Wahington, D.C. 20555-0001
Dear Chairman Jackson:
t I am writing with respect to efforts underway to find means of assuring that the decommissioning obligations of Great Bay Power Corporation, owner of 12.13240 percent of Si abrook Station, will be fulfilled.
As you may know, representatives of Great Bay Power Corpo tion me' with Craig Smith, Seabrook Project Manager, and other members of the agency's staff on December 16* to broach the notion of accelerating their payments to the decommissioning fund in order to comply with the NRC's requirements. I understand the company intends to submit a formal filing to the NRC i i January.
I fully endorse accelerated funding which limits the risks to the decommissioning fund, liowever, in light of the peculiar and unique commercial exigencies of Great Bay Power Corporation, I do not consider accelerated funding alone provides the assurance requ
_ by both the NRC and the State of New Hampshire.
Consequently, I have introduced legislation (a copy of which is enclosed) to provide the necessary assurance in the form of a proporticnal guarantee of Great Bay Power Corporation's decommissioning obligation by the joint-owners of Seabrook Station. Thi legislation, I believe, is a necessary compicment to the accelerated payment schedule proposed by the company.
As you are aware, the Final Policy Statement on the Restructuring and Economic Deregulation ofthe Electric Utility Industry, issued by the NRC on August I9, l997, anticipated that "in highly untaual situations" like that of Great Bay Power Corporation, owners of_ nuclear entitlements might be held jointly and severally liable for decommissioning obligations. I believe a proportional guarantee, though short ofjoint and several liability, provides sufficient assurance for the risk' posed by Great Bay Power Corporation until the restructuring and deregulation of the electric power industry in New Hampshire is complete.
9801220307 990105 PDR ADOCK 0S000443 P'
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-4 The legislation is tailored and limited strictly to assuring the decommissioning obliga g
of Great Bay Power Corporation between the effxtive date of the statute and the :,
3; restructuring of the elebtric power industry. Restructur/ng New Hampshire 's Electric Utility Industryl Final Plan, issued by the Public Utilities Commission.on Febr]j 1997, contemplates utilities will divest their generating assets within two years ofL initiating competition. Therefore, restructuring will require a mechanism for assuring :
i decommissioning obligations in a deregulated and competitive marketplace, The development of this mechanism is contingent upon and integral to resolution of oj aspects of restructuring the industry. Meanwhile, Great Bay Power Corporation j
an immediate problem open to a discrete solution. In addressing this specific problem, m legislation is not intended to serve as a precedent for the' general assurance of decommissioning obligations required to complete the restructuring of the industry.
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i If successful, this legislation would be effective upon passage; that is, by July' 1998 when the extension granted by the NRC to Great Bay Power Corporation expires. I trust the' NRC will conclude that with this legislation no purpose would be served by a further extension which would simply prolong exposure to the risk of default.-
- I would ask the NRC to consider this legislation as it addresses the case of Great Bay
- Power Corporation.
Sincerely, f
A N
Beverly Hollingworth BAH:mk enclosure cc: Craig Smith, NRR, Seabrook Project Manager -
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Sen. llollingworth, Dix 23 l
December 19,1997 l
1998 0229s 03/01 Amendment to SB 140 1
Amend the title of the bill by replacing it with the following:
2 relative to the obligations ofjoint owners,to the nuclear decommiscioning finance fund.
3 AN ACT 4
5 Amend the bill by replacing all after the enacting clause with the following:
0 1 Decommissioning of Nuclear Electric Generating Facilities; Guarantee of Payment: Default 7
8 of Payment.
The joint owners of a facility shall be proportional guarantors of the decommissioning 9
obligations of any joint owner of the facility which on the effective date of this section, does not have 10 1I a franchise territory,
- 11. The nuclear decoinmissioning financing committee shall designate the joint owners of a 12 facility as proportional guarantors of any joint owners of the facility that are unable to meet their 13 obligations as proportional guarantors of the deca.nmissioning obligations of any joint owner of the 14 15 facility without a franchise territory.
10 111.
If a joint owner of a facility without a franchise territory defaults on its decommissioning obligations, the committee shall require the remaining owners of the facility to 17 18 submit for the committee's approval a plan for the fulfillment of the defaulting owner's The 19 decommissioning obligations. The plan shall be submitted within 20 days after the default.
plan may include the sale of the defaulting owner's share of the power generated by the facility, and 20 the application of the proceeds of such sale to the defaulting owner's decommissioning obligations.
21 For purposes of this section, " default' means the failure by an owner to make 2 consecutive 22 23 payments to the fund required by RSA 162 F.
IV. If there is no plan submitted and approved pursuant to paragraph Ill, the committee 24 may prepare and implement a plan for recovering the decommissioning costs in default.
25 2G V.
Notwithstanding any other provision of law, a utility that is required to pay a proportional share as guarantor pursuant to thir section may charge all or some of the amount to 27 customers on a per kilowatt hour basis only upon approval by the public utilitica commission after a 28 29 finding that such a charge is just and reasonable and in the public good.
30 2 Repea' Section 1, relative to decommissioning of nuclear electric generating facilities, ia 31 repealed.
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Amendment to S3140
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3 Contingency.- Section 2 of this act shall take efect 30 days after the chairman d the public -
1-utahties commissen has certi6ed that retail electric competition exists in the entire state pursuant -
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to RSA 38:36.
4-4 Efective Date.
5.
- I. Section 2 d this act shall take efect as prwiu.d in section 3.
.6 II.- %e remainder d this act shall take efect upon passage.
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Amendment to Sil 140
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1 l-1998 0229s AMENDED ANALYSIS
'Ihis bill designates joint owners of a facility as guarantors of the decommissioning obligations of a joint owner tvithout a franchise territory.
This bill also provides that the nuclear decommissioning finance committee shall require a plan for the fulfdlment of the decommissioning obligations of a joint owner of a facility without a franchise territory that defaults.
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