ML20205A427

Comment on Petition for Rulemaking PRM-50-64 Which Requested Greater Clarification by NRC Re Possible Financial Obligations of NPP Licensees as Reflected in NRC Final Policy Statement on Restructuring & Economic Deregulation

ML20205A427
Person / Time
Site:	Palo Verde
Issue date:	03/18/1999
From:	James M. Levine ARIZONA PUBLIC SERVICE CO. (FORMERLY ARIZONA NUCLEAR
To:	NRC OFFICE OF THE SECRETARY (SECY)
References
FRN-64FR432, RULE-PRM-50-64 102-04262-JML-S, 102-4262-JML-S, 64FR432-00014, 64FR432-14, NUDOCS 9903300378
Download: ML20205A427 (2)

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y. r 1I qy James M. Levine T E L (602j393-5300 Mad Stat on 7602 Palo Verde Nuclear Senior Vice Prescent F AX (602j393-6077 P O Bcx52034 Generatng Staton Nactear . ,

g Pncena AZ 85C72-2034 J 102-04262-JML/SAB/RKB Secretary AE. . March 18,1999 ATTN: Rulemakings and Adjudication's Staff U. S. Nuclear Regulatory Commission Washington, DC 20555-0001 D XKP NUMSER PETITION RULE PRM 50-6V

Subject:

Palo Verde Nuclear Generating Station (PVNGS)

Units 1,2, and 3 Docket Nos. STN 50-528/529/530 Comments on " Atlantic City Electric Company, Austin Energy, Central Maine Power Company, Delmarva Power & Light Company, South Mississippi Electric Power Associatior., and Washington Electric Cooperative, Inc.; Receipt of Petition for Rulemaking (64 Fed. Reg.

432, January 5,1999)."

Arizona Public Service Company (APS) submits the following comments in response to the Nuclear Regulatory Commission's request for comments on the " Atlantic City Electric Company, Austin Energy, Central Maine Power Company, Delmarva Power &

Light Company, South Mississippi Electric Power Association, and Washington Electric Cooperative, Inc.; Receipt of Petition for Rulemaking (64 Fed. Reg. 432, January 5, 1999)."

APS fully endorses the comments provided by the Nuclear Energy Institute (NEI) on behalf of the nuclear industry. APS recommends that the Commission not approve the petitioner's request for rulemaking, docketed as PRM-50-64.

APS, as a joint owner and operator of the Palo Verde Nuclear Generating Station, understands the petitioner's desire for added clarification with respect to potential financial obligations of nuclear power plant licensees as reflected in the NRC's " Final Policy Statement on the Restructuring and Economic Deregulation of the Electric Utility industry (62 Fed. Reg. 44077, August 10,1998)." Specifically, we acknowledge that, if anything, it may be beneficial for the NRC to provide greater clarification regarding the use of " joint and several" liability in " highly unusual circumstances" as discussed in the NRC's policy statement.

9903300378 990318 PDR PRM 50-64 PDR OUUO95 DSIb

l S cr:tary, U.S. Nuclear Regulatory Commission Comments on Receipt of Petition for Rulemaking Page 2 APS does not believe that a rulemaking proceeding is necessary to provide further clarification. In fact, APS believes ti.e proposed rulemaking would not benefit the nuclear power industry because the proposed change vould unfairly and inappropriately burden the licensed operator, and may be subject ta misinterpretation.

I APS believes that joint ownership agreements can adequately address this issue, and in fact, APS' joint ownership / participation agreement contains provisions for dealing with such si+:ations should it be necessary. In addition, the NRC's existing regulatory authority to condition operation of nuclear reactors on the satisfaction of: 1) either the criteria for " electric utility" status or financial qualification requirements, and 2) decommissioning funding assurance, is sufficient to ensure financial obligations are satisfactorily met to protect the public heaith and safety.

Please contact Mr. Scott Bauer at (602) 393-5978 if you have any questions. This letter does not make any commitments to the NRC.

Sincerely, m

(

JML/SAB/RKB/rth cc: E. W. Merschoff M. B. FieiJs J. %Moorman 41 -