ML20210N413
| ML20210N413 | |
| Person / Time | |
|---|---|
| Issue date: | 06/11/1996 |
| From: | Schuetze G NRC |
| To: | Shirley Ann Jackson, The Chairman NRC COMMISSION (OCM) |
| Shared Package | |
| ML20210N243 | List: |
| References | |
| FOIA-97-178 NUDOCS 9708250218 | |
| Download: ML20210N413 (4) | |
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' From: Gerryp:huetze . ~
To:
Date: '
SAJ.dflcodjedsgg 6/11/9612:28pm
Subject:
Utility meeting Chairman Jackson -
Commonwealth Edison's James O'Connor, Chairman /CEO, and Mike Wallace, SeniorNP Nuclear, have requested a meeting with you to replace the June 6 meeting which was cancelled. I have scheduled time on Tuesday, August 13, at 10:30 a.m.
CC: MMS, AVC, BEH, BRB1, ESW, VMM -
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1400 OPUS Place Downers Grove,IL 60515 i
- TRANSMITTAL SHEET DATE
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Department: NUCLEAR LICENSING 4
! Telephone Numbcr: (708) 663-Transmittal Sheet Plus Page(s)
, Telecopy Number:
l 3o96 Ifyou have any problems receiving your telecopy, please call (708) 663-7352 i
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7 26-96 Points for Comed /NRC Aug 'l3,1996 Briefing - '
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- Industry Restructuring and Decommissioning The NRC's leadership is important in educating the economic regulators of the naad to sasure the availability of funds for plants to meet health and safety "
requirementa.
Since every aepoot of a utility's restructuring will be subject to approvals from a variety of state and federal regulators, the NRC must work closely with these agencies to assure that its interests in public health and safety are given appropriate consideration by those bodies.
The electric industry is clearly in a transition from a system of fully regulated utility monopolies to a competitive - or at least partially competitive marketplace.
.The electric industry of both the near and distant future will be characterized
, by substantially less uniformity than exists today, but rnore specific generallratione are less certain.
-Whh this means movehient away from vertica#y integrated, regulated structures, the transformation will occur over time and should not result in any disruptions of existing contractual, regulatory or statutory rights.
-The financial implications of - and existing constitutional and statutory protections against - radical disruptions of these relations makt: piecipitous change unrealistic.
-The NRC must take the opportunity during this transition to participate Mth economic regulators in managing the process.
- Strandsd costs" are costs included in a utility's ratabase which have yet to be recovered in full, particularly the capital costs of generation.
-The NRC can provide signifleant guidance to economic regulators on the public health and safety issues by affirming the need for stranded cost recovery.
However, recovery of such costs are not - and should not be - the responsibility of the NRC.
-Economic regulators who have considered stranded costs in the current industry transition have acted to provide for their recovery.
Economic regulators have always allowed sukient and continued funding of ,
decommissioning costs to insure that utilities make proper economic decisions regarding the operation of plants. -
-Utildies have demonstrated to regulatory bodies that in certain circumstances it is economically beneflonel to their customers to shut down nuclear reactors.
-Comed retred its Dresden Unit 1 in 1985 and has collecied funds for ds riscommissioning in the 11 years since.
-There it no compelling need for the NRC to roGulate additional financial assurances for decommissioning funds in anticipation of competition, deregulation and restructuring,
-Gken the variety of reatnjeturing opportunities and options which con evolve, the NRC probably cannot successfully and pr ~.iphely identify and craft all of the possible decommissioning recovery measures that might be appropriate.
' -In light of the current sufRciency of funding and the reguletors' past actions in essuring suNicient funding, additional NRC instigated guarantees are unnecessary and in fact may inhibit the competitiveness of nuclear generation.
-However, the NRC should monitor and work with state and federal economic regulators to assure that the NRC's public Interests are fully L
addressed during the transition process e