ML20207J149

Requests Exemption from 10CFR171 Annual Fee Assessment for Facility.Justification Encl

ML20207J149
Person / Time
Site:	Three Mile Island
Issue date:	08/25/1988
From:	Kintner E GENERAL PUBLIC UTILITIES CORP.
To:	Stello V NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
References
4410-88-L-0131, 4410-88-L-131, NUDOCS 8808300262
Download: ML20207J149 (4)

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' GPU Nuclear Corporation x g EM ggy One Upper Pond Road Mw wMu Parsippany, New Jersey 07054 201-316-7000 TELEX 136-482 Writer's Direct Dial Number:

(717) 948-8461 Tugust 25, 1988 4410-88-L-0131/0ll8P Mr. Victor Stello, Jr.

Executive Director of Operations US Nuclear Regulatory Commission Washington, DC 20555

Dear Mr. Stello:

Three Mile Island Nuclear Station, Unit 2 (TMI-2)

Operating License No. DPR-73 Docket No. 50-320 10 CFR Part 171 Exemption Request GPU Nuclear requests an exemption from the 10 CFR Part 171 annual fee assessment for Three Mile Island Unit 2. NRC letters dated March 18, 1987, and February 23, 1988, previously granted GPU Nuclear an exemption from the 10 CFR Part 171 annual fee requirements for TMI-2 for fiscal years 1987 and 1988, respectively. This request is submitted pursuant to Section 171.11, "Exemption," which states:

The Commission may, upon application, grant an exemption, in part, from the annual fee required pursuant to this part. An exemption under this provision may be granted by the Commission taking into consideration the following factors:

(a) Age of the reactor; (b) Size of the reactor; (c) Number of customers in rate base; (d) Net increase in KWh cost for each customer directly related. to the annual fee assessed under this part; and (e) Any other relevant matter which the licensee believes . justifies the reduction of the annual fee."

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GPU Nuclear Corporat:on is a subsid,ary of General Pubhc UtAties Corporat on

Mr. Stello August 25, 1988 4410-88-L-0121 Based on the rationale provided in the attachment relevant to the above considerations, the requested exemption for TMI-2 appears to be warranted.

Coincidentally, granting this exemption would permit the maximum resources available to TMI-2 to be properly directed to funding cleanup activities including support of the upcoming NRC-sponsored research project to extract samples of the TMI-2 Reactor Vessel lower head for metallurgical analysis.

Sincerely,

. E. Kintner Executive Vice President ,

FRS/eml ,

Attachment cc: Senior Resident Inspector, TMI - R. J. Conte Regional Administrator, Region 1 - W. T. Russell Director, Plant Directorate IV - J. F. Stolz Systems Engineer, TMI Site - L. H. Thonus l

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4 ATTACHMENT 4410-87-L-0112 Justification for Exemption from the Annual Fee Requirement of 10 CFR Part 171

1. -10 CFR 171.ll(b) states the size of the reactor is a consideration in granting an exemption from the annual fee. In its present condition, TMI-2 is unable to operate; GPU Nuclear receives none of the benefits attendant to an operating plant. For purposes of the annual fee, TMI *<.

should be considered a "zero" power reactor. Size is irrelevant.

2. 10 CFR 171.11(c) states that the number of customers in the rate base is a consideration in granting an exemption. Since TMI-2 is not in the rate base, fees associated with TMI-2 are not passed on to customers.

Regulatory fees paid by GPU Nuclear for TMI-2 are provided from designated cleanup funds resulting in a net decrease in the funding available for the cleanup. Therefore, it appears the lack of rate base inclusion should be a consideration for granting an exemption.

3. 10 CFR 171.ll(e) states that any other relevant matter which the licensee believes justifies the reduction of the annual fee will be considered.

GPU Nuclear opines that there are several factors unique to TMI-2 which warrant a TMI-2 exemption from the annual fu.

a. As stated in the proposed rulemaking, published in the Federal Register (51FR24078) on July 1,1986, the annual fee is based on the several regulatory services provided by the NRC to persons applying for or holding operating licenses. In addition, in response to comments on the proposed rule which were published in the Federal Register (SlFR33224) on September 18, 1986, the NRC stated that a review of these services was performed "...to ensure that only generic costs associated with all power reactors, with operating licenses, regardless of types, were included in the cost basis."

Based on review of the information provided in those notices, it appears that the unique condition of TMI-2 was not considered.

Further, due to that unique condition, the near total lack of applicability of the generic costs associated with the regulatory services addressed in those notices appears to support a determination that TMI-2 sh';uld not be encompassed in the broad categorization of "...all power reactors, with operating licenses...".

b. TMI-2 is unique in that major cleanup activities are specifically I approved by the NRC. The cost of performing the reviews necessary to obtain NRC approval for these activities is recovered via the fees paid by GPU Nuclear in accordance with 10 CFR Part 170. For example, 10 CFR Part 170 Licensing fees paid for services rendered in 1986 (the latest year for which complete data is availab'a) were approximately $468,000. Therefore, GPU Nuclear beliec9s that the fees paid pursuant to 10 CFR Part 170 meet the intent of Owigress in that these fees are "... reasonably related to the regulatory service provided by the Commission and fairly reflect the cost to the l

Commission of providing such service."

4 ATTACHMENT 4410-87-L-0112

c. The Final Rule provides that applicants for operating licenses are not subject to the 10 CFR Part 171 Annual Fees. GPU Nuclear suggests that TMI-2 is similar in status with regard to benefits received from generic regulatory services provided by the NRC. While regulatory services from which the generic costs in the annual fee are derived may be of some future benefit, no benefit is currently realized.

Thus, TMI-2 should not be subject to an annual charge based on generic regulatory costs; rather, costs associated with TMI-2 support should be recovered in accordance with 10 CFR Part 170, as discussed above,

d. The Final Rule acknowledges that certain classes of license receive limited benefit from the NRC generic programs and should not be subject.to .the annual fees. Thus, operating licensees subject to the annual fee do not include licenses for."possession only" based on a licensee request to amend a license to permanently withdraw authority to operate or those for which the Commission has permanently revoked the authority to operate. Both cases are closely analagcus to' TMI-2. GPU Nuclear presently receives the same limited benefits from NRC generic programs as "possession only" licenses or operating licensees whose authority to operate has been permanently revoked by the NRC. Therefore, TMI-2 should be similarly excluded from the rule. Further, sufficient uncertainty exists concerning the feasibility of returning the TMI-2 plant to an operational status to warrant consideration as permanently non-operating within the context of this rulemaking until a determination to the contrary has been made,

e. The cleanup and evaluation of the TMI-2 accident is providing information that is of benefit to the entire industry. The research programs funded by the Department of Energy (D0E) and others provide a significant contribution to many of the NRC generic programs. Of special significance is the evaluation of the radioactive source term which, as stated in the July 1, 1986 proposed rulemaking, "... lies at the very heart of the regulatory process." Thus, it is the GPU Nuclear viewpoint that TMI-2 is contributing significantly to NRC 1 generic programs and payment of an annual fee to further support these programs is not appropriate. )

f. In addition to the research programs funded by the 00E, GPU Nuclear has agreed to cooperate in an NRC-sponsored program to extract samples from the lower head of the Reactor Vessel for metallurgical analysis to determine the degree of damage caused by the March 1979 i accident. GPU Nuclear has agreed to provide the necessary access to the Reactor Vessel as well as the technical support required for this research at cost. GPU Nuclear will underwrite substantial overhead costs. Therefore, it is the GPU Nuclear viewpoint that TMI-2 is making yet another significant contribution to the NRC generic programs in a tangible way and should be exempt from the subject fees.