ML20234B579

Recommends That Recipient Personally Review Situation Re Effect of Bankruptcy or Pending Bankruptcy on Operation of Plant & Take Steps to Reverse Trend in Turnover in in-house Engineering Staff & Initiate Maint & Design Actions

ML20234B579
Person / Time
Site:	River Bend
Issue date:	06/29/1987
From:	Crutchfield D Office of Nuclear Reactor Regulation
To:	Draper E GULF STATES UTILITIES CO.
References
NUDOCS 8707060110
Download: ML20234B579 (2)

Text

June 290 1987 i

Docket No. 50-458 Dr. E. Linn Draper, Jr. )'

President and Chief Executive Officer Gulf States Utilities P. O. Box 2951 Beautmentt, Texas 77704 j

Dear Dr. Draper:

Recently it was brought to my attention that as a result of a FERC decision, Gulf States Utilities (GSU) informed the Securities and Exchange Commission (SEC) that GSU may seek protection from creditors under the Bankruptcy Code.

As you know from our earlier correspondence, the staff is concerned that bankruptcy or even the pendency of bankruptcy could negatively impact the l operation of River Bend Station.

Your financial structure is principally a matter between GSU and appropriate state and federal bodies with authority over financial matters. However, your financial situation could adversely affect the quality of such activities as:

(1) filling planned or needed staff positions at both the plant and corporate office, (2) implementation of training program plans and commitn.ents, (3) sche-duled plant maintenance tasks, including implementation of preventive maintenance programs, (4) timely completion of scheduled plant design changes and modifica-tions affecting safety, (5) procurement of new and replacement parts, and (6) management and quality assurance oversight functions. Specifically, the staff is quite concerned with the high turnover in GSU engineering personnel at River Bend Station, deferred maintenance and apparent delays in making design changes.

I would urge you to personally review this situation and take immediate steps  !

to reverse the trend in the turnover in your in-house engineering staff and initiate actions to perform necessary maintenance and design changes. I would further remind you of GSU's commitments of July 29, 1986 and December 15, 1986 to keep the staff promptly informed of developments in your financial condition.

We would be pleased to discuss this matter further, if you desire.

Sincerely, 15}

Dennis M. Crutchfield, Director Division of Reactor Projects - III, IV, )

V and Special Projects i Office of Nuclear Reactor Regulation DISTRIBUTION Docket File NRC PDR Local PDR PD4 Reading D. Crutchfield F. Schroeder J. Calvo P. Noonan S. Stern 0GC-Bethesda E. Jordan J. Partlow ACRS (10) PD4 Plant File R. Martin, RIV

^See Previous Concurrences:

PD4/LA PNoonand PD4/PM SStern:s/

PD4/D JCalvo p DR4A FSchroeder y QV DC tchfield 6/17/87 6/16/87 6/16/87 6/18/87 6/g/87 8707060110 870629 PDR I ADOCK 05000458 PDR

to perform necessary maintenance and design changes. I would further remind you of GSU's commitments of July 29, 1986 and December 15, 1986 to keep the staff promptly informed of developments in your financial condition.

We would be pleased to discuss this matter further, if you desire.

Sincerely, I

Dennis M. Crutchfield, Director I Division of Reactor Projects - III, IV, V and Special Projects Office of Nuclear Reactor Regulation DISTRIBUTION Docket File NRC PDR i I

Local PDR PD4 Reading D. Crutchfield F. Schroeder  !

l J. Calvo P. Noonan l

S. Stern OGC-Bethesda E. Jordan  !

J. Partlow ACRS (10) 1 PD4 Plant File R. Martin, RIV l

1 l l . / l l PD4 b PD4/D D 4k DhP:D PNoonan f ern:sr JCalvo FSchroeder DChutchfield l 6/8/87 '6/10/87 6//6/87 6/ [8_7 6/- /87

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