ML17216A393

Raises Concerns Re 1985 Decision to Postpone Safety Shutdown of Facility for Refurbishing After 10 Yrs of Operation & NRC Waiver of 1986 Shutdown.News Article Re Concerns Expressed in 851205 Ltr Encl

ML17216A393
Person / Time
Site:	Saint Lucie
Issue date:	12/09/1985
From:	Barry D AFFILIATION NOT ASSIGNED
To:	Palladino N NRC COMMISSION (OCM)
Shared Package
ML17216A394	List: ML17216A393 ML17216A396
References
NUDOCS 8601090488
Download: ML17216A393 (5)

Text

MARSHALL'BARRY, PH.D.ECONOMIC CONSULTANT 74 ELIOT AVENUE WEST NEWTON.MASSACHUSETTS 02165 AREA CODE 617-332-1382 Nunzio J.Palladino, Director U.S.Nuclear Regulatory Commission Washington, D.C.20555 December 9, 1985

Dear Mr.Palladino:

I have attached a copy of a Boston Globe news article which addresses directly the concern I expressed in my ll P',letter to you dated, December 5, 1985.The decision in 1985 by FPSL and the NRC to initially postpone the safety.shutdown for refurbishing after 10 years H of on-line operations at the Hutchinson Island nuclear powerhouse and the subsequent waiver by the NRC of the safety shutdown in 1986 directly impact on the financial condition of the Florida Power and Light Company.Needless to say, the postponement and subsequent waiver of a safety requirement which would entail an 18 to 24 month shutdown of the nuclear powerhouse for repairs and refurbishing will dramatically reduce the costs and, as a result, increase FP8L's profits from its operations in Florida.The State of Florida's Public Service Commission has been approving rate such a shutdown at this plant.Your waiver has resulted in three deleterious impacts on the consumer of electrical power: 1.The rate structure charged over the last 10 years has been inflated to an unjustifiable level since the costs of the shutdown are ficticious.

2.The safety of consumers has been ignored in favor of strictly economic considerations of a short run nature.3.The political viability of nuclear power as an alter-native source of energy has been threatened due to this sanctioned, unsafe operating condition.

Another Three Mile Island incident, or worse, would be more than the public would accept.If action is taken by the NRC to enforce all safety 8601090488 860>0+~~PDR ADOC)C 0@000>>S,)PDR

~a 12/9/85, page 2 requirements for all nuclear operations, there would be two significant accomplishments:

1~The eroding public confidence in the NRC as a protector of the"public interest" would be restored, at least in part.The accepted view that the NRC serves as merely an industry representative and apologist would be reversed'~The hiatus in public regulation of nuclear power which currently exists would be filled'sing Florida as an example, the State's Public Service Commission only regulates the provision and pricing of electrical power to consumers within the state~It is understaffed and strained to fill this role given its limited resources.

It must operate under the assumption that.the NRC is ensuring the safety of nuclear powerplants in both the construction and operations phases.It approves utility rates based on data submitted by private utilities as justification for rate increases.

These data include the costs of NRC safety requirements'our waiver of this major safety requirement has exposed Florida to needless risks as well as inflated costs for electric service Finally, please send me a copy of the NRC staff memoranda mentioned in the Globe article.Thank you in advance for your prompt action to reverse your wa'iver,'and to'emove the resultin'g'afety hazard.h II l Sincerely, CC: DE Marshall Barry, Ph.DE Senator Edward M.Kennedy Senator John Kerry Representative Barney Frank Representative Edward J~Markey Representative Michael Bilirakis John RE Marks, III Chairman, Public Service Commission State of Florida D.MARSHALL BARRY.PH.D.ECONOMIC CONSULTANT Qe THE BOSTON GtOBE ShTURDhY DECEMBER 7!985 US World V~~oq I!,sta ties irms'narnces, ant sa et By John Robinson....

dum dated July~IQSS that"Ananctat strain" on the resources of hrkansas Power d!Light Co.c!add potentially have power la is can be dl!ectl!eh ted tto othe an ImPact on the safety of the comPany's flnandal health of their parent compan.lcs, according to Internal staff memoran-.,, ln a subsequent memo'Dlrks raised da of tbe Nuclear Regulatory Commis-.!concernsaboutstateregulationsthat"ln sion.!.the Interest of short-term economtcs,'pressures may cause utilities to hurry A'rst tl~Once th NRC sto~mvlcw'ork.take short cuts or delay action In nanclal viability is rehtcd Issues have..Dtrks said the regulations.

known as caused ofAclal concern<<Ithln the regula-performance Incentives."may affect thi: tory agency.One NRC stalfer pointed to bahnce between aspects condudve to the Public Servlpe Co.of New Hampshire, safety and aspects that couM erode safe-and its Seabrook nuclear ptant as an ex-..ty."'amP Of a P qkPt Jhat.ra Sm~tt'Pn.'he issue of financial vlab0lty and cef As.A-.~!~,.-i safety has bce'n a mat ter of litigation be-WIIIIsm J.Dirks.NRC executive dt~'tween nuclearpowercompanlcs andanti.for for operations.

wrote In a memo!an-nuclear envlronmentallsts, who contend that utilities cannot get suffldent funds through the rate setting process to ensure safe malntanence and operation of their nuclear facilities.

The NRC.slnci.eliminating Its Anan-ctal review process.believes there ts no connection bet<<cert reviews and safety.But Peter Bradford.'a former NRC commissioner'who voted against drop-ping the review lute.said yesterday.

an'xamination of the Th!ec Mlle Island nu-clear plant acddcnt demonstrated that A-~nandal consMerattons"might force a utility to take steps that would be Incon-sistent with safe operations." h NRC staff member who asked not to be IdentlAed by name, said the growing concern Inside the agency was that utili-ties, especially relatively small ones like Public Service of New Hampshire, would cut back on experienced stiff and ncccs-sary malntalnence when faced with fl.nandal choices."Scab!ook represented a very targe In-crease.a doubling.of Public Service of HSw Hampshire's capital assets.It be-.came clear as they went along they could not afford the rapid growth.The danger's a company like that will say.'Let's cut back.'nfortunately, with a nuclear power plant.It all bolts down to safety." In a letter released yesterday to NRC chairman Nunzto J.Palladlno, Rcp.Ed-ward J.Markey wrote."I Armly believe..that a utility's Ananctai situation shoutd not be permitted to Justify or excuse any threat to public health and safety." Markey.chairman of the House sub-committee on energy conservation and power.asked that the commission pro.~vide"speclAc process and criteria" for public assessment of a nuclear licensee's

~'inancial qualiAcatlons.

a hm NMO PhLLhDINO""..:~ter from IglrrF~c h,

~" SECY NUMBER: 85-1071 CO SPONOENCE CONTROL TICKET OFFICE.OF THE SECRETARY D.Marshall Barry~~LOGGING DATE 12/13/85 ACTION OFFICE: AUTHOR: AFFILIATION:

LETTER DATE: ADDRESSEE:

SUBJECT:

ACTION: DISTRIBUTION:

SPECIAL HANDLING: SIGNATURE DATE: EDO D.Marshall Barry West Newton, Mass 12/5/85 FILE CODE None fOR THE COMMISSION Pal 1 adino Ten year safety requirement for FP8L Direct Reply...Suspense:

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