ML20206Q518

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Responds to to SL Hiatt Re Fee Exemption Granted to Firstenergy Nuclear Operating Co,Operator of Perry Nuclear Plant.Action Consistent with Longstanding Policy & Practice,As Well as Legal Requirements
ML20206Q518
Person / Time
Site: Perry FirstEnergy icon.png
Issue date: 05/14/1999
From: Funches J
NRC OFFICE OF THE CONTROLLER
To: Latourette S
HOUSE OF REP.
References
NUDOCS 9905190152
Download: ML20206Q518 (5)
v • d • e


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  • , UNITED STATES Tr s* j 2

NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 30688 4001 {'

\y*/ May 14, 1999 e l s The Honorable Steven C. LaTourette )

United States House of Representatives I Washington, DC 20515

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Dear Congressman LaTourette:

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l am responding to your April 7,1999, letter, addressed to Ms. Susan L. Hiatt, Director, Ohio Citizens for Responsible Energy (OCRE), conceming a fee exemption granted to FirstEnergy Nuclear Operating Company (FirstEnergy), the operator of Perry Nuclear Power Plant in Perry, Ohio (Parry Plant). Your letter, provided to Chairmen Jackson as a courtesy copy, indicated that a response from the Chairman would be forthcoming. OCRE opposes this fee exemption, questions its legality and also questions how increased leakage of radioactive steam into the environment can be in the public interest.

The NRC has a longstanding policy of granting fee exemptions for its review of license applications that address industry initiatives that have a generic effect on NRC's regulatory program. These exemptions are issued pursuant to Title 10 of the Code of Federal Regulations, $170.11(b)(1).

In establishing the potential radiological consequences of a reactor accident, the NRC predicts the type and amount of radioactivity that mighi be released into the environment.

This is referred to as the " source term". The fee exemption issued here involved an application for an amendment to FirstEnergy's operating license to implement an attemative source term at the Perry Plant. Due to the increased understanding of the physical phenomena gained from this effort, the NRC has determined that the altemative source term permits a greater overall steam leakage rate while still limiting environmental releases to within established regulatory limits.  !

7 These "first of a kind" reviews provide valuable teaming experiences for the NRC staff, but also require substantial expenditure of NRC resources. Subsequent reviews addressing the same issue will utilize far fewer NRC resources because of conclusions drawn and lessons leamed from the initial review. Forty-one of forty-three power reactor licensees surveyed have indicated they plan to utilize the revised source term at their facilities. The Commission has deemed it unfair for the initial applicant to bear the substantial cost. Therefore, the NRC  !

typically grants a fee exemption. The costs of these first of a kind programs are recovered

' through the annual fees assessed to all operating power reactors. Because the Perry Plant is subject to annual fees, FirstEnergy will pay its fair share of the review cost.

As you are aware,100 percent of the Agency's budget is recovered through fees in accordance with the Omnibus Budget Reconciliation Act of 1990. Therefore, there is no public subsidy for this review.

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9905190152 990514 PDR ADOCK 050004 0 1

7 1

,c 1 The Honorable Steven C. LaTourei1e 5/14/99 l In summary, these circumstances justify the issuance of the fee exemption to

, FirstEnergy. This action is consistent with longstanding policy and practice, as well as

- legal requirements, if I can be of any further assistance, please contact me at 301-415-7322.

Sincerely, Original signed by Jesse L. Funches Jesse L. Funches Chief FinancialOfficer Distribution:

L. Tremper, OCFO/DAF/LFARB D. Rathbun, OCA D. Mossburg, SECY CRC-99-0326 Docket 50-440 OCA RF SECY RF OCFO/DAF/LFARB RF OCFO/DAF RF (DAF 9084)

OCFO/DAF SF (LF-1.2 & LF-3.2.8) w/ orig inc NUDOCS (ML-61) w/cy inc PDR w/cy inc S. Hudson (OCFO-99-149)

DCFO RF OCFO RF DOCUMENT NAME: G:\DAF944.wpd

  • See previous sim-(To receive a copy of this document. indicate in the box: 'C' = Copy without attachment / enclosure *E' -Copy with attachment / enclosure *N" =No copy.

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p COMMITTE' E ON TRANSPORTATION COMMITTEE oN BANKINo g , AND INFRASTRUCTURE /WO FINANCIAL sERYlCES p COMMITTEE oN Vc:N-- lr oOVERNMENT REFORM Suecomunas on GeNau Owenson ettben C. T.aEcurette Congregg of tije Enitch Stateg s 19th Bistritt,9hio l i April 7,1999 l REC'D BY SECY Ms. Susan L. Hiatt 12 t?R 99 J', Qpox 22 Grand River, Ohio 44045

Dear Ms. Hiatt,

Thank you for your letter concerning the Nuclear Regulatory Commission's (NRC) decision to waive fees for the Perry Nuclear Power Plant. You raise several interesting questions. Accordingly, I have taken the liberty of forwarding a copy of your letter to the Chairman of the NRC, Dr. Shirley Ann Jackson. When I receive Chairman Jackson's response, I will share it with you. Again, thank you for your letter, and this opportunity to be of assistance. I remain Very truly yours, 

                                                                                 / ff Steven C. LaTourette Member of Congress l

D . Shirley Ann Jackson ROOM 1224 1 VICTORd PLACE PARIAA HEH3 HTS CITY HALL LONGwORTH HOUSE OFFICE BUILDWG ROOM 320 6281 PEARL ROAD WASHINGTON, DC 30615 PAINE $VILLE. OH 44077 PARMA HEIGHTS. OH 44130 (202) 226-6731 (440)362-3339 (440) 087-3000 TOLL FREE IN OHIO 1 6 7429}}

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