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| issue date = 12/09/1985
| issue date = 12/09/1985
| title = 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
| title = 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
| author name = BARRY D M
| author name = Barry D
| author affiliation = AFFILIATION NOT ASSIGNED
| author affiliation = AFFILIATION NOT ASSIGNED
| addressee name = PALLADINO N J
| addressee name = Palladino N
| addressee affiliation = NRC COMMISSION (OCM)
| addressee affiliation = NRC COMMISSION (OCM)
| docket = 05000335, 05000389
| docket = 05000335, 05000389
Line 17: Line 17:


=Text=
=Text=
{{#Wiki_filter:MARSHALL'BARRY,PH.D.ECONOMICCONSULTANT 74ELIOTAVENUEWESTNEWTON.MASSACHUSETTS 02165AREACODE617-332-1382NunzioJ.Palladino, DirectorU.S.NuclearRegulatory Commission Washington, D.C.20555December9,1985
{{#Wiki_filter:MARSHALL 'BARRY, PH.D.
ECONOMIC CONSULTANT 74 ELIOT AVENUE                                                AREA CODE 617 - 332-1382 WEST NEWTON. MASSACHUSETTS 02165 December 9, 1985 Nunzio J. Palladino, Director U.S. Nuclear Regulatory Commission Washington, D.C. 20555


==DearMr.Palladino:==
==Dear Mr. Palladino:==


IhaveattachedacopyofaBostonGlobenewsarticlewhichaddresses directlytheconcernIexpressed inmyllP',lettertoyoudated,December5,1985.Thedecisionin1985byFPSLandtheNRCtoinitially postponethesafety.shutdownforrefurbishing after10yearsHofon-lineoperations attheHutchinson Islandnuclearpowerhouse andthesubsequent waiverbytheNRCofthesafetyshutdownin1986directlyimpactonthefinancial condition oftheFloridaPowerandLightCompany.Needlesstosay,thepostponement andsubsequent waiverofasafetyrequirement whichwouldentailan18to24monthshutdownofthenuclearpowerhouse forrepairsandrefurbishing willdramatically reducethecostsand,asaresult,increaseFP8L'sprofitsfromitsoperations inFlorida.TheStateofFlorida's PublicServiceCommission hasbeenapproving ratesuchashutdownatthisplant.Yourwaiverhasresultedinthreedeleterious impactsontheconsumerofelectrical power:1.Theratestructure chargedoverthelast10yearshasbeeninflatedtoanunjustifiable levelsincethecostsoftheshutdownareficticious.
I have attached      a  copy of  a  Boston Globe news article ll which addresses directly the concern I expressed in my
2.Thesafetyofconsumers hasbeenignoredinfavorofstrictlyeconomicconsiderations ofashortrunnature.3.Thepolitical viability ofnuclearpowerasanalter-nativesourceofenergyhasbeenthreatened duetothissanctioned, unsafeoperating condition.
      ',letter to you dated, December 5, 1985.
AnotherThreeMileIslandincident, orworse,wouldbemorethanthepublicwouldaccept.IfactionistakenbytheNRCtoenforceallsafety8601090488 860>0+~~PDRADOC)C0@000>>S,)PDR  
P The decision in 1985 by FPSL and the NRC to initially postpone the safety. shutdown for refurbishing after 10 years H
~a12/9/85,page2requirements forallnuclearoperations, therewouldbetwosignificant accomplishments:
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~Theerodingpublicconfidence intheNRCasaprotector ofthe"publicinterest" wouldberestored, atleastinpart.TheacceptedviewthattheNRCservesasmerelyanindustryrepresentative andapologist wouldbereversed'
: 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.
~Thehiatusinpublicregulation ofnuclearpowerwhichcurrently existswouldbefilled'sing Floridaasanexample,theState'sPublicServiceCommission onlyregulates theprovision andpricingofelectrical powertoconsumers withinthestate~Itisunderstaffed andstrainedtofillthisrolegivenitslimitedresources.
: 2. The safety of consumers has been ignored in favor of strictly economic considerations of a short run nature.
Itmustoperateundertheassumption that.theNRCisensuringthesafetyofnuclearpowerplants inboththeconstruction andoperations phases.Itapprovesutilityratesbasedondatasubmitted byprivateutilities asjustification forrateincreases.
: 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.
ThesedataincludethecostsofNRCsafetyrequirements'our waiverofthismajorsafetyrequirement hasexposedFloridatoneedlessrisksaswellasinflatedcostsforelectricserviceFinally,pleasesendmeacopyoftheNRCstaffmemoranda mentioned intheGlobearticle.Thankyouinadvanceforyourpromptactiontoreverseyourwa'iver,'and to'emovetheresultin'g'afety hazard.hIIlSincerely, CC:DEMarshallBarry,Ph.DESenatorEdwardM.KennedySenatorJohnKerryRepresentative BarneyFrankRepresentative EdwardJ~MarkeyRepresentative MichaelBilirakis JohnREMarks,IIIChairman, PublicServiceCommission StateofFloridaD.MARSHALLBARRY.PH.D.ECONOMICCONSULTANT Qe THEBOSTONGtOBEShTURDhYDECEMBER7!985USWorldV~~oqI!,statiesirms'narnces, antsaetByJohnRobinson....
If  action is taken by the NRC to enforce all safety 8601090488 860>0+   ~~
dumdatedJuly~IQSSthat"Ananctat strain"ontheresources ofhrkansasPowerd!LightCo.c!addpotentially havepowerlaiscanbedl!ectl!ehtedttootheanImPactonthesafetyofthecomPany's flnandalhealthoftheirparentcompan.lcs,according toInternalstaffmemoran-.,,
PDR  ADOC)C  0@000>>S,   )
lnasubsequent memo'DlrksraiseddaoftbeNuclearRegulatory Commis-.!concernsaboutstateregulationsthat "lnsion.!.theInterestofshort-term economtcs,
PDR
'pressures maycauseutilities tohurryA'rsttl~OncethNRCsto~mvlcw'ork.takeshortcutsordelayactionInnanclalviability isrehtcdIssueshave..Dtrkssaidtheregulations.
 
knownascausedofAclalconcern<<Ithlntheregula-performance Incentives.
          ~ a 12/9/85, page 2 requirements          for all  nuclear operations, there would be two significant accomplishments:
"mayaffectthi:toryagency.OneNRCstalferpointedtobahncebetweenaspectscondudvetothePublicServlpeCo.ofNewHampshire, safetyandaspectsthatcouMerodesafe-anditsSeabrooknuclearptantasanex-..ty."'amPOfaPqkPtJhat.raSm~tt'Pn.'heissueoffinancial vlab0ltyandcefAs.A-.~!~,.-isafetyhasbce'namatteroflitigation be-WIIIIsmJ.Dirks.NRCexecutive dt~'tweennuclearpowercompanlcs andanti.forforoperations.
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'
wroteInamemo!an-nuclearenvlronmentallsts, whocontendthatutilities cannotgetsuffldent fundsthroughtheratesettingprocesstoensuresafemalntanence andoperation oftheirnuclearfacilities.
                    ~   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.
TheNRC.slnci.eliminating ItsAnan-ctalreviewprocess.believestheretsnoconnection bet<<certreviewsandsafety.ButPeterBradford.
Thank you in advance for your      prompt action to reverse your wa'iver,'and to'emove the            resultin'g'afety hazard.
'aformerNRCcommissioner'who votedagainstdrop-pingthereviewlute.saidyesterday.
h II              l Sincerely, DE  Marshall Barry, Ph.DE CC:        Senator Edward M. Kennedy Senator John Kerry Representative Barney Frank Representative Edward J Markey
an'xamination oftheTh!ecMlleIslandnu-clearplantacddcntdemonstrated thatA-~nandalconsMerattons "mightforceautilitytotakestepsthatwouldbeIncon-sistentwithsafeoperations."
                                              ~
hNRCstaffmemberwhoaskednottobeIdentlAed byname,saidthegrowingconcernInsidetheagencywasthatutili-ties,especially relatively smalloneslikePublicServiceofNewHampshire, wouldcutbackonexperienced stiffandncccs-sarymalntalnence whenfacedwithfl.nandalchoices."Scab!ook represented averytargeIn-crease.adoubling.
Representative Michael Bilirakis John RE Marks,     III Chairman, Public Service Commission State of Florida D. MARSHALLBARRY. PH.D.                                                 ECONOMIC CONSULTANT Qe
ofPublicServiceofHSwHampshire's capitalassets.Itbe-.cameclearastheywentalongtheycouldnotaffordtherapidgrowth.Thedanger'sacompanylikethatwillsay.'Let's cutback.'nfortunately, withanuclearpowerplant.Itallboltsdowntosafety."Inaletterreleasedyesterday toNRCchairmanNunztoJ.Palladlno, Rcp.Ed-wardJ.Markeywrote."IArmlybelieve..thatautility's Ananctaisituation shoutdnotbepermitted toJustifyorexcuseanythreattopublichealthandsafety."Markey.chairmanoftheHousesub-committee onenergyconservation andpower.askedthatthecommission pro.~vide"speclAcprocessandcriteria" forpublicassessment ofanuclearlicensee's
 
~'inancial qualiAcatlons.
THE BOSTON GtOBE              ShTURDhY DECEMBER 7 !985 V
ahmNMOPhLLhDINO
US World
""..:~terfromIglrrF~ch,
      ~ ~ oq I
~"SECYNUMBER:85-1071COSPONOENCE CONTROLTICKETOFFICE.OFTHESECRETARY D.MarshallBarry~~LOGGINGDATE12/13/85ACTIONOFFICE:AUTHOR:AFFILIATION:
                          ,sta                            ties irms'narnces,                                                                                                           ant sa et By John    Robinson....                         dum dated July  ~   IQSS that "Ananctat     that utilities cannot get suffldent funds sary malntalnence when faced with fl.
LETTERDATE:ADDRESSEE:
nandal choices.
strain" on the resources of hrkansas        through the rate setting process to ensure Power d! Light Co. c!add potentially have    safe malntanence and operation of their                      "Scab!ook represented a very targe In-an ImPact on the safety of the comPany's    nuclear facilities.                                      crease. a doubling. of Public Service of power la is can be dl!ectl !eh ted tto othe                                                                                                                    Hampshire's capital assets. It be-.
flnandal health of their parent compan.                                                          The NRC. slnci. eliminating Its Anan- HSw lcs, according to Internal staff memoran-.,, ln a subsequent memo 'Dlrks raised              ctal review process. believes there ts no came clear as they went along they could "ln                                                          not afford the rapid growth. The danger da of tbe Nuclear Regulatory Commis-. ! concernsaboutstateregulationsthat                   connection bet<<cert reviews and safety.                    a company like that willsay.'Let's cut
                                                                                                                                                                                                's sion.                                     ! .the Interest of short-term economtcs, But Peter Bradford. 'a former NRC back.'nfortunately, with a nuclear
                                              'pressures may cause utilities to hurry A'rst tl~ Once th NRC sto~ mvlcw         'ork.       take short cuts or delay action In commissioner'who voted against drop- power plant. It all bolts down to safety."
ping the review lute. said yesterday.                        In a letter released yesterday to NRC hm of the Th!ec Mlle Island nu- chairman Nunzto J. Palladlno, Rcp. Ed-an'xamination clear plant acddcnt demonstrated that        A-      ~
ward J. Markey wrote. "I Armly believe .
nanclal viability is rehtcd Issues have          .. Dtrks said the regulations. known as    nandal consMerattons "might force a .that a utility's Ananctai situation shoutd caused ofAclal concern <<Ithln the regula-       performance Incentives. "may affect thi:     utility to take steps that would be Incon- not be permitted to Justify or excuse any tory agency. One NRC stalfer pointed to bahnce between aspects condudve to                  sistent with safe operations."                          threat to public health and safety."
the Public Servlpe Co. of New Hampshire, safety and aspects that couM erode safe-                                                                                                                                                     h, h NRC staff member who asked not to                      Markey. chairman of the House sub-and its Seabrook nuclear ptant as an ex- .. ty."                                       '
be IdentlAed by name, said the growing committee on energy conservation and amP Of a P qkPt Jhat.ra Sm      ~tt 'Pn .       'he    issue of financial vlab0lty and    concern Inside the agency was that utili- power. asked that the commission pro. ~
cef As.               A -. ~ !     ~,.   -
i safety has bce'n a mat ter of litigation be- ties, especially relatively small ones like vide "speclAc process and criteria" for WIIIIsm J. Dirks. NRC executive dt~       'tween nuclearpowercompanlcs andanti.         Public Service of New Hampshire, would public assessment of a nuclear licensee's ~
cut back on experienced stiff and ncccs-NMO PhLLhDINO "" ..:
for for operations. wrote In a memo!an- nuclear envlronmentallsts, who contend                                                                                  qualiAcatlons.
a
                                                                                                                                                                                                    'inancial
                                                                                                                                                                                                              ~ter from IglrrF~c
 
D.~   Marshall Barry CO    SPONOENCE  CONTROL TICKET
                                                                          ~
~" SECY NUMBER:   85-1071                                                LOGGING DATE    12/13/85 OFFICE. OF THE SECRETARY ACTION OFFICE:           EDO AUTHOR:                   D. Marshall Barry AFFILIATION:             West Newton, Mass LETTER DATE:             12/5/85                                    FILE      CODE ADDRESSEE:               Pal 1 adino


==SUBJECT:==
==SUBJECT:==
ACTION:DISTRIBUTION:
Ten  year safety requirement for      FP8L ACTION:                   Direct Reply...Suspense:    Dec 24 DISTRIBUTION:
SPECIALHANDLING:
SPECIAL HANDLING:         None SIGNATURE DATE:                                                       fOR THE COMMISSION Roc'd Off BOO nato...).~-..'.>~>>.
SIGNATURE DATE:EDOD.MarshallBarryWestNewton,Mass12/5/85FILECODENonefORTHECOMMISSION Pal1adinoTenyearsafetyrequirement forFP8LDirectReply...Suspense:
                                                            ~ a ~ ~ ~ ~
Dec24Roc'dOffBOOnato...).~-..'.>~>>.
                                                                        )e
)e~a~~~~~~~~'It~%4WQ 4}}
                                                                        ~ ~ ~ ~ 'I t~%4WQ
 
4}}

Latest revision as of 14:54, 4 February 2020

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
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Site: Saint Lucie  NextEra Energy icon.png
Issue date: 12/09/1985
From: Barry D
AFFILIATION NOT ASSIGNED
To: Palladino N
NRC COMMISSION (OCM)
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Download: ML17216A393 (5)


Text

MARSHALL 'BARRY, PH.D.

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

Dear Mr. Palladino:

I have attached a copy of a Boston Globe news article ll which addresses directly the concern I expressed in my

',letter to you dated, December 5, 1985.

P 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, DE Marshall Barry, Ph.DE CC: 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. MARSHALLBARRY. PH.D. ECONOMIC CONSULTANT Qe

THE BOSTON GtOBE ShTURDhY DECEMBER 7 !985 V

US World

~ ~ oq I

,sta ties irms'narnces, ant sa et By John Robinson.... dum dated July ~ IQSS that "Ananctat that utilities cannot get suffldent funds sary malntalnence when faced with fl.

nandal choices.

strain" on the resources of hrkansas through the rate setting process to ensure Power d! Light Co. c!add potentially have safe malntanence and operation of their "Scab!ook represented a very targe In-an ImPact on the safety of the comPany's nuclear facilities. crease. a doubling. of Public Service of power la is can be dl!ectl !eh ted tto othe Hampshire's capital assets. It be-.

flnandal health of their parent compan. The NRC. slnci. eliminating Its Anan- HSw lcs, according to Internal staff memoran-.,, ln a subsequent memo 'Dlrks raised ctal review process. believes there ts no came clear as they went along they could "ln not afford the rapid growth. The danger da of tbe Nuclear Regulatory Commis-. ! concernsaboutstateregulationsthat connection bet<<cert reviews and safety. a company like that willsay.'Let's cut

's sion.  ! .the Interest of short-term economtcs, But Peter Bradford. 'a former NRC back.'nfortunately, with a nuclear

'pressures may cause utilities to hurry A'rst tl~ Once th NRC sto~ mvlcw 'ork. take short cuts or delay action In commissioner'who voted against drop- power plant. It all bolts down to safety."

ping the review lute. said yesterday. In a letter released yesterday to NRC hm of the Th!ec Mlle Island nu- chairman Nunzto J. Palladlno, Rcp. Ed-an'xamination clear plant acddcnt demonstrated that A- ~

ward J. Markey wrote. "I Armly believe .

nanclal viability is rehtcd Issues have .. Dtrks said the regulations. known as nandal consMerattons "might force a .that a utility's Ananctai situation shoutd caused ofAclal concern <<Ithln the regula- performance Incentives. "may affect thi: utility to take steps that would be Incon- not be permitted to Justify or excuse any tory agency. One NRC stalfer pointed to bahnce between aspects condudve to sistent with safe operations." threat to public health and safety."

the Public Servlpe Co. of New Hampshire, safety and aspects that couM erode safe- h, h NRC staff member who asked not to Markey. chairman of the House sub-and its Seabrook nuclear ptant as an ex- .. ty." '

be IdentlAed by name, said the growing committee on energy conservation and amP Of a P qkPt Jhat.ra Sm ~tt 'Pn . 'he issue of financial vlab0lty and concern Inside the agency was that utili- power. asked that the commission pro. ~

cef As. A -. ~ ! ~,. -

i safety has bce'n a mat ter of litigation be- ties, especially relatively small ones like vide "speclAc process and criteria" for WIIIIsm J. Dirks. NRC executive dt~ 'tween nuclearpowercompanlcs andanti. Public Service of New Hampshire, would public assessment of a nuclear licensee's ~

cut back on experienced stiff and ncccs-NMO PhLLhDINO "" ..:

for for operations. wrote In a memo!an- nuclear envlronmentallsts, who contend qualiAcatlons.

a

'inancial

~ter from IglrrF~c

D.~ Marshall Barry CO SPONOENCE CONTROL TICKET

~

~" SECY NUMBER: 85-1071 LOGGING DATE 12/13/85 OFFICE. OF THE SECRETARY ACTION OFFICE: EDO AUTHOR: D. Marshall Barry AFFILIATION: West Newton, Mass LETTER DATE: 12/5/85 FILE CODE ADDRESSEE: Pal 1 adino

SUBJECT:

Ten year safety requirement for FP8L ACTION: Direct Reply...Suspense: Dec 24 DISTRIBUTION:

SPECIAL HANDLING: None SIGNATURE DATE: fOR THE COMMISSION Roc'd Off BOO nato...).~-..'.>~>>.

~ a ~ ~ ~ ~

)e

~ ~ ~ ~ 'I t~%4WQ

4