PNO-IV-89-019, on 890315,util Received Allegations Re Util Incompetence & Mismanagement Re Const Costs & Plant Operation.Region IV Formed Multidisciplined Team to Identify Safety Issues.Util Also Conducting Investigation

PNO-IV-89-019:on 890315,util Received Allegations Re Util Incompetence & Mismanagement Re Const Costs & Plant Operation.Region IV Formed Multidisciplined Team to Identify Safety Issues.Util Also Conducting Investigation

ML20236C009
Person / Time
Site:	South Texas
Issue date:	03/16/1989
From:	Holler E NRC OFFICE OF INSPECTION & ENFORCEMENT (IE REGION IV)
To:
References
PNO-IV-89-019, PNO-IV-89-19, NUDOCS 8903210427
Download: ML20236C009 (2)

. ._ _

$ 1 - March 16, 1989 i PRELIMINARY NOTIFICATION OF EVENT.0R UNUSUAL OCCURRENCE -- FNO-IV-89-19 This preliminary notification constitutes EARLY notice of events of POSSIBLE safety or public interest significance. The information is as initially received without verification or' evaluation, and is basical.ly all that is known by the Region.IV stiff on-this date.

FACILITY: Houston Lighting'& Power Company ' Licensee Emergency Classification:

South Texas Project, Units 1 and 2 Notification of Unusual Event Docket Nos. 50-498; 50-499 Alert Site Area Emergency \'

General Emergency )

X Not Applicable

SUBJECT:

ALLEGATIONS-REGARDING. SOUTH' TEXAS PROJECT-

'On March 15, 1989, Houston Lighting & Power Company (HL&P) received a copy of.a

. ten page letter containing various allegations regarding South Texas Project (STP), Units 1 and 2. The February 28, 1989, letter, outlined by a

.former HL&P employee, is addressed to the'Public Utility Commission of-Texas (PUC). The PVC docketed the letter in connection with hearings begun on March 13, 1989 (Docket No. 8425)'and forwarded copies to HL&P and the NRC.

The allegations' come on the eve of Comission consideration of a. full power license for STP, Unit 2. STP, Unit 1, received a full-power license on March 22,, 1988, and began commercial operations August 25, 1988. STP, Unit 2, received a~1ow power / fuel load license December 16, 1988, and achieved initial criticality on March 12, 1989. A Commission hearing regarding full power licensing of STP, Unit 2, is scheduled for March 28, 1989.

The letter, which the PUC has placed in:a docket open to the public, generally alleges incompetence and mismanagement on the part of HL&P regarding costs associated with'the construction and operation of STP, Units 1 and 2. .The

- examples of cost inefficiency in the letter also include allegations of improper plant modification management, improper procedure modifications, noncompliance with technical specification, training deficiencies, failures to maintain radioactive releases as low as reasonably achievable, and improper problem report resolution.

l- Region IV has formed a multidisciplined team to identify all potential safety L issues in the letter. This effort should be completed by March 17, 1989, and 4 y' will be followed by a plan for appropriate resolution of the issues identified.

HL&P also received a copy of the letter from the PUC, HL&P is conducting its own investigation of the safety issues raised in the letter.

% 8 Neither the licensee nor the NRC plan to issue a press release, i 51 The state of Texas has been informed.

.o El S Region IV received notification of this occurrence by phone from a PUC staff s ? member March 14, 1989. Region IV received copies of the allegation letter from

( (g; the PUC and HL&P March 15, 1989.

ogi M This information has been confirmed with a licensee representative.

CONTACT: E. J. Holler, 728-826/

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