ML20202F646
| ML20202F646 | |
| Person / Time | |
|---|---|
| Site: | Shoreham File:Long Island Lighting Company icon.png |
| Issue date: | 07/07/1986 |
| From: | Irwin D HUNTON & WILLIAMS, LONG ISLAND LIGHTING CO. |
| To: | Kline J, Margulies M, Shon F Atomic Safety and Licensing Board Panel |
| References | |
| CON-#386-981 OL-3, NUDOCS 8607150207 | |
| Download: ML20202F646 (2) | |
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Dr. Jerry R.
Kline Mr. Frederick J.
Shon By Telecopier Atomic Safety and Licensing Board Panel U.S.. Nuclear Regulatory Commission East-West Tower, Room 402-A 4350 East-West Highway Bethesda, Maryland 20814 s
Long Island Lighting Company (Shoreham Nuclear Power Station, Unit 1)
(Docket No. 50-322-0L-3)
Gentlemen:
LILCO responds briefly to the letter of today's date sub-mitted on behalf of the State of New York regarding legislation recently enacted by the New York State Legislature.
The purpose of this reply is solely to correct a misimpression which that letter would leave -- that a Long Island Power Authority will imminently come into existence and purchase LILCO, and that the only remaining order of business is negotiation of a takeover price.
The fact is that on July 3 the New York State Legislature approved two bills that in time could affect Shoreham.
One per-mits the establishment of a Long Island Power Authority to assume, if specified conditions can be met, the property and ob-ligations of Long Island Lighting Company.
The other could ex-clude future costs attributable to Shoreham from the rate base unless the plant had received a full power operating license and become "used and useful" in the generation of commercial elec-tricity by a future date certain.
Neither bill, however, has any immediate effect.
The "LIPA" i
bill does not become effective for any purposes for nearly six months yet, until January 1, 1987, and its prospects at any point thereafter for acquisition of LILCO, with or without Shoreham, cannot be determined from the bill's face.
The "used and useful" bill would exclude Snoreham expenses from LILCO's rate base only 8607150207 860707 PDR ADOCK 05000322 Q
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.o H UNTON Oc WILLIAM S July 7, 1986 Page 2 1988.1/ plant has not entered commercial service by December if the Neither of these bills purports to prohibit further ef-forts to license Shoreham -- an automatic, immediate taking of property for which just compensation would have to be paid -- in the meantime; indeed, proposed amendments to that effect were re-jected.
The only effect of these bills' enactment is to enhance the urgency of completing full power licensing proceedings well be-fore Shoreham becomes potentially vulnerable under either one of them.
They clearly do not provide a valid basis for this licens-ing board to depart from the Commission's instructions to hold expedited hearings on the February 13, 1986 Shoreham emergency preparedness exercise.
They plainly do not add any justiciable issues to such a proceeding.
They may, however, commend substan,-
tial contraction of the hearing schedule proposed by LILCO on 4
July 1, so as to ensure completion of proceedings in time to forestall potential future jeopardy under the bills.
LILCO will be prepared to address this matter and other areas of reply at the prehearing conference tomorrow.2/
Respectfully sabmitted,
(.
Donald P.
Irwin One of Counsel for Long Island Lighting Company 91/730 cc:
Docketing and Service Section Counsel for all Parties 1/
Two eventualities could trigger an earlier effective date for the "used and useful" bill -- voluntary abandonment of Shoreham by LILCO or final denial of an operating license.
Nei-ther of these, of course, has occurred.
2/
LILCO has not replied in writing to the July 1 submission from counsel for Suffolk County since it believes that all issues raised by it can be dealt with orally at the prehearing confer-ence.
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