ML19330C133

Revision of Contention 6 Alleging That TMI-2 Accident Has Severed & Weakened Licensee Financial Position.Intends to Submit Expert Analysis of TMI Financial Fallout, Available to Public.Certificate of Svc Encl

ML19330C133
Person / Time
Site:	Three Mile Island
Issue date:	07/31/1980
From:	Widoff M THREE MILE ISLAND ALERT, WIDOFF, REAGER, SELKOWITZ & ADLER
To:	Atomic Safety and Licensing Board Panel
Shared Package
ML19330C125	List: ML19330C124 ML19330C128 ML19330C130 ML19330C133 ML19330C134
References
ISSUANCES-SP, NUDOCS 8008070609
Download: ML19330C133 (3)

Text

'

. ' s .Q !a .

- D(. h gp?

~p

't UNITED STATES OF AMERICA -

NUCLEAR REGULATORY COMMISSION g .,TK P BEFORE THE ATOMIC SAFETY AND LICENSING BOARD q,,

01 d6 MJ, W

f . ,

h , ". .s In the Matter of ) ..

)

METROPOLITAN EDISON COMPANY ) Cocket No. 50-289

)

(Restart)

(Three Mile Island Nuclear )

Station, Unit No.1) )

REVISION OF TMIA CONTENTION 6 10 CFR 50.40,10 CFR 50.57 and 10 CFR 50 Appendix C require Licensee to prove that it is " financially qualified to engage in the proposed activities in accordance with th'e regulations in this chapter." Particularly,10 CFR 50.33 requires Licensee to show that it " possesses or has reasonable assurance cf l l

obtaining funds necessary to' cover the estimated cost of cperation for the period I cf the license or for five years, whichever is greater, plus the estimated cests cf ,

l shutting the facility down and maintaining it in a safe condition."

TMIA contends that the TMI-2 accident and its aftermath have placed Licensee in a severely weakened financial position -- such that Licensee and its parent, GPU Corporation, are unable to attract the necessary capital at reasonable rates to finance necessary capital expondintres at both TMI-2 and TMI-1, while simultaneously meeting their cbligations elsewhere. Such an inability to acquire necessary capital, particularly given the ever-increasing estimates for the cost 8008070

of clean-up at TMI-2, makes it questienable, at best, whether Licens'ee could adequately respond financially to any substantial unanticipated occurrences at LII-1. Further, it is problematical at this time as to whether Licensee will be able to respond adequately to presently known financial needs at TMI-1 and TMI-2. Without very substantially increased rates and government financial assistance, both of which cannot reasonably be predictea to occur in the near future, Licensee cannot and does not meet the requirement that it be financially qualfied to operate a nuclear plant.

TMIA will rely, in supporting this contention, upon the financial information already submitted or to be submitted by Licensee in this proceeding and financial reports and information submitted in past as well as present Pennsylvania PUC proceedings, the GAO report entitled Three Mile Island: The Financial 'allout, and standard market analyses available to the general public, including Standard and Poors, Moody's Investor Services, Saloman Brothers and other similar publi-cations. TMIA intends to submit the analysis of an expert witness who has evaluated this information.

l

~~

Respectfully submitted, WILOFF, REAGER, SELKOWITZ & ADLER, P.C.

/

\

By: YE I /

Mark P. Widoff j

6 ff_'

. . Box 1547 h risburg, PA 17105 (717) 763-1383 l

Dated: July 31,1980 1

e CERTIFICATE OF SERVICE I hereby certify that I caused a true and correct copy of the foregoing document, Revision of TMIA Centention 6, to be placed in the United States mail, first-class, postage prepaid, addressed to the persons listed below:

Ivan W. Smith, Chairman Atomic Safety & Licensing Board Panel U.S. Nuclear Regulatory Commission Washington, DC 20555 Dr. Walter H. Jordan 881 West Outer Drive Oak Ridge, TN 37830 Dr. Linda W. Little 5000 Hermitage Drive Raleigh, NC 27612 George F. Trowbridge, Esquire Shaw, Pittman, Potts &.Trowbridge 1800 M Street, N.W.

Washington, DC 20006 Docketing and Service Section U.S. Nuclear Regulatory Commission Washi.igton, DC 20555 Executive Legal Director U.S. Nuclear Regulatory Commission Washington, DC 20555 r

hY/ 'A36#

~' ilar.k P . Widoff 6' Dated: July 31,1980