ML20199G863

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

ML20199G863
Person / Time
Site:	Oyster Creek
Issue date:	01/07/1999
From:	Bill Dean NRC (Affiliation Not Assigned)
To:	Johari Moore AFFILIATION NOT ASSIGNED
References
NUDOCS 9901250045
Download: ML20199G863 (9)

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NUCLEAR REGULATORY COMMISSION WASHINGTON. D.C. 20666-0001 January 7, 1999

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l Ms. Jacqueline Marie Moore 42-A Haines Street Lanoka Harbor, NJ 08734

Dear Ms. Moore:

I have been asked to respond to your letter to Senator Leonard T. Connors, Jr., dated September 23,1998, regarding the possible closure of the Oyster Creek Nuclear Generating Station (OCNGS) and the possible impact that closure may have on the economy and the environment of the community.

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 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 adequately finance safe operation and decommissioning of their nuclear power plants.

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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 l which certain maintenance is performed; and a decline in training resources. The NRC must L

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 financs 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 i 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. 1 With respect to some other issues you raised, and as indicated by your 9th District representatives in a letter to you dated December 8,1998, there is considerable activity at the State level to develop long-term strategies to address the socioeconomic and environrnental '

i issues surrounding the OCNGS facility.

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. g J. Moore I hope this letter is responsive to your concems regarding the safe operation of OCNGS until a final decision is made regarding the future operation of the facility.

Sincerely,

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William M. Dean, Director Project Directorate 1-2 Division of Reactor Projects - t/11 Office of Nuclear Reactor Regulation ec: See next page DISTRIBUTION Docket File (50-219) (w/ original incoming)

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l J. Moore I hope this letter is responsive to your concems regarding the safe operation of OCNGS until a final decision is made regarding the future operation of the facility.

Sincerely, 1

William M. Dean, Director Project Directorate 1-2

's Division of Reactor Projects - t/II Office of Nuclear Reactor Regulation cc: See next page 1

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GPU Nuclear Corporation Oyster Creek Nuclear Generating Station cc:

Emest L. Blake, Jr., Esquire Senator Leonard T. Connors, Jr.

Shaw, Pittman, Potts & Trowbridge 9th District Legislative Offices 2300 N Street, NW 620 West Lacey Road l Washington, DC 20037 Forked River, NJ 08731 i Regional Administrator, Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406-1415 BWR Licensing Manager GPU Nuclear Corporation 1 Upper Pond Road Parsippany, NJ 07054 Mayor Lacey Township 818 West Lacey Road Forked River, NJ 08731 Licensing Manager Oyster Creek Nuclear Generating Station Mail Stop: Site Ernergency Bldg.

P.O. Box 388 Forked River, NJ 08731

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c/o U.S. Nuclear Regulatory Comr".'ssion P.O. Box 445 Forked River, NJ 08731 Kent Tosch, Chief New Jersey Department of Environmental Protection Bureau of Nuclear Engineering CN 415 Trenton, NJ 08625 Mr. Michael B. Roche Vice President and Director GPU Nuclear Corporation Oyster Creek Nuclear Generating Station P. O. Box 388 Forked River, NJ 08731 l

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,. CORRESPONDENCE CONTROL TICKET PAPER NUMBER: CRC-98-1166 LOGGING DATE: Dec 28 98  ;

ACTION OFFICE: EDO

• AUTHOR: LEONARD CONNORS '

l AFFILIATION: NEW JERSEY-  !

ADDRESSEE: JACQUELINE MOORE LETTER DATE: 'Dec 8 98 FILE CODE: IDR S OYSTER CREEK  !

SUBJECT:

OYSTER CREEK NUCLEAR GEN STATION ACTION: ' Appropriate- DifPO b DISTRIBUTION: CHAIRMAN ,

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STATE OF NEW JERSEY T.C'D BTy g. AuD T. CONNORS, JR. 9til DISTntCT LEGISLATIVE OFFICES JEFFREY W. MORAN SEN ATon - 97H DISTn CT 620 WEST LACEY ROAD ASSEMBLYMAN - 97H DISTRICT FORKED RIvra. NJ 08731 CHRISTOPHER J. CONNORS 3 DEC % 2.15$ 609-693-6700 ASSEMBLYMAN - 9TH DISTRICT December 8,1998 Mr. Jacqueline Marie Moore 42-A Haines Street Lanoka Harbor, New Jersey 08734 m

Dear Ms. Moore:

This brief note is to acknowledge a copy of your recent letter to our legislative Office. 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 economic effects of the possible i 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 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 i jobs and careers. To diminish the potential economic effects on many communities here in the I region.

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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 ofits 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 copy of this reniv. we are forwardine a cooy of your letter to NRC Commiccioner Shirlev Ann Jackson. This convevance formally requests Commiccioner Jackson to thorongldy 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 i 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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December 8,1998 Ms. Jacqueline Marie Moore Page 2 In an effort to obtain some 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 reply. we are sending a copy of your letter to Office of Lecislative Services Senior Fiscal Analyst Georne J. LeBlanc. This transmittal authorizes Mr. LeBlanc to put tonether a comnrehensive briefine on these verv comnlex issues.

Finally, the New Jersey Board of Public Utilities will play a prominent role in the decision making process to chart Oyster Creek'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 requests your statement to be entered into the official public record of testimony on thic 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 cancern 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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LEONAR'DT. CONNORS, JR'.

Senator - 9th District VhV ,' r 5

JEFFREY W. MORAN CHRISTOPHER J@NNORS Assemblyrnan - 9th District Assemblynnn - 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 (With Enclosure) l

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b September 23,1998 Jacqueline Marie Moore

! 42-A Haines Street Lanoka Harbor, NJ 08734 f

Senator Leonard T. Connors, Jr., R.

620 West Lacey Road Forked River, NJ 08731 L

Dear Senator Conners,

I am writing this letter to you to show my concern on the negative economic and p

environmental effects deregulation will have in New Jersey. This deregulation plan does i not recognize the positive impact OystdCrsek Nuclear Generating Station has to the environment. Oyster Creek is performing excellently and I would also like to note that-it is a clean running plant. I am concerned about the premature closing of Oyster Creek which will threaten our base load and will in return increase production of our coal and l

gas plants, increasing carbon pollutants, which is a direction I thought we were steering away from.

L If not properly regulated, deregulation will have a devastating effect on the Local and State economy by having a loss of skilled jobs and the accompanying taxes paid and l

revenue spent locally. New Jersey can not afford the loss of all these jobs and should not l jeopardize the reliability of electricity for a deregulation plan with false promises of I saving the rate payer money.

Being a resident of Ocean County New Jersey, I am asking you to please look into these issues that concern us all.

T ank you for your assistance,

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, A f/ vM Jacqueline Marie Moore I

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