ML20212E715

Responds to Urging NRC to Reconsider Temporary Extension Recently Issued to Great Bay Power Corp Related to NRC Requirements for Decommissioning Funding Assurance

ML20212E715
Person / Time
Site:	Seabrook
Issue date:	10/23/1997
From:	Shirley Ann Jackson, The Chairman NRC COMMISSION (OCM)
To:	James Anderson NEW HAMPSHIRE, STATE OF
Shared Package
ML20212E722	List: ML20212E715 ML20212E740
References
NUDOCS 9711040037
Download: ML20212E715 (2)

Text

.. -

~ _.

ix

)tdf

- [-

~ UNITED STATES /

>i sp V.

NUCLEAR REGULATORY COMMISSION 5gE

{"

- n-

-WASHINGTON, D.Ci N00H001 l

OctoberT23,-1997 l

i CWMN i

!J I

l y

Mr. James R. Anderson j

Assistant Consumer Advocate t

f Office of the Consumer Advocate -

- 117 Manchester Street Concord,- NH 03301-5141 t

Dear Mr. Anderson:

e

,q l

I am responding to your August 21',1997, letter in which your office urges the Nuclear E

_ Regulatory Commission (NRC) to reconsider the temporary exemption recently issued to the Great Bay Power Corporation related to NRC requirements for decommissioning funding.

assurance. As I have rscently responded to Mr. Robert A. Backus, whose letters on the l[

subject you refer to in your correspondence, the Commission has reviewod the granting of -

2 the temporary exemption and concluded that it was a reasonable action by the NRC staff,

L consioering the facts and circumstances in this instance. There is no immediate threat to 1

l public health or safety that results from Great Bay currently not meeting the decommissioning

- funding assurance requirements, and there is no other compelling reason that warrants-further action by the Commhsion at this time. The NRC will require an effective long-term -

solution regarding Great Bay's compliance with the NRC decommissioning funding f

- regulations. In the'meantime, the staff will be monitoring the financial condition of Great Bay and its progress in complying with NRC regulations.

In your letter, you also expressed concems relating to the potential effect of deregulation of the electric power generating industry upon the financial viability of three of Seabrook Station's joint owners and the need to hedge against the possibility of an early shutdown of the Seabrook Station. The Commission, too, is concemed about potential adverse effects of electric utility deregulation on public health and safety and assurance of decommissioning fundin: To assure that NRC regulatory programs adequately reflect the changing conditions -

created by economic deregulation, the NRC staff is following carefully developments in State deregulation programs and their resulting business restructuring activities. There have been several recent related NRC regulatory and policy developments, and as the deregulation process unfolds, there may be more.

On September 10,' 1997-(62 Federg B;4giger,47588-47606), the NRC published, for comment, proposed changes to its iegulations on financial assurance requirements for the decommissioning of nuclear power plants to respond to questions on whether current NRC regulations conceming decommissioning funds and their financial mechanisms will need to be modified in an economically deregulated environment. On August 19,1997 (62 Federal Reciater,44071-44078), the NRC published a policy statement on rts expectations and g

intended approach to nuclear power plant licensees as the industry moves away from rate U l

'9711040037 971023 llllllll'"ll""l'l j

)

PDR CoPM8 MCC-l Cam acome=Ce rDa

..., gg kDevun

, _ ~...-.

.- ~. -. - _ ~.. -... -

,.. +. -

4

. v,-

2 -:

' regulation toward greater compe;itioni: The policy statement addresses the NRC's concems -

~

about the adequacy of decommissioning funds and about the potential impact of economic'

- deregulation and various industry restructuring actions on the operational safety of reactors.--

Virtually all States are considering or taking actions either by law or through public utility.,

commission regulation that responds to economic deregulation of the electric power industry _

As these State restructuring programs progress, the NRC will evaluate the need for additional regulatory changes. The NRC will take appropriate actions to protect public health and j

safety and to assure that power reactor licensees remain financially qualified to assure safe

-)

operation and adequate decommissioning funding. I assure you that the issue of adequate -

assurance of decommissioning funding is one that the NRC will be following closely.

-l

. Sincerely.

-]

JPP Shirley Ann Jackson.

m

3..

!