ML20100K199

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Submits Opinion Re Likelihood of Default on Premiums by One or More Utils,Per Request.Retrospective Premium Small Compared to Total Util Responsibility in Conducting Business.Forfeit of Payment Not Foreseen
ML20100K199
Person / Time
Site: Fermi DTE Energy icon.png
Issue date: 05/28/1976
From: Askegaard D
RURAL ELECTRIFICATION ADMINISTRATION
To: Dinitz I
Office of Nuclear Reactor Regulation
Shared Package
ML20100K197 List:
References
NUDOCS 8504120312
Download: ML20100K199 (1)


Text

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l May 23,1976 .

ivn .11ra Dinitz, Indecmity SpeciaUst 8 {@

Antitrust and Indemnity Group Nuclear Reactor Regulation y

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4hJliL,(JI

'Q Q i Nuclear Regulatory Commission Washfugton, D. C. 20555 -

OCT l '.1982 :9

'* dORltilhh h1lCHIGla, Deat ivtr. hinitz: 'il.ECTylc rnooFRATIV-I wish to thank you for your telephone call of April 28,1970, and tau ensuing letter pointing out the changes to thy'Prfce Anderson

Act of 1957, which were enacted by fugl3c Law 94-197

.Wu were aware of these changes and the fast that owners of nuclear .

in the unlikelt occurrqnce of a nuclear incident. reactors may The Administrator or the Rural Electrification Administr9 tion is authorised, purquant to lite RE Act. $o make loana' euurse, all of.our bprroweya,(or auch petrospective premiums Of to d'at,'; would be Hable only for percentages of these retrospective premiums since the borrower,s usually own leiis than a full portion of the reactor. The prs =1ums - '

would not be large with respect to the total nuclear plant investment or the nnnual operating cost of a large nuclear reactor. .

s -

I J.a yout letter.you further asked our opinion as to the likeuhood of .

dufault on the premiums by one or more utiuties. In our judgment *

  • the ristrospective premium would be relatively small when compare,d tu the total utiUty responsibilities of conducting business. I cancot foresco how auy utility large enough to be involved in nuclear -

13uneration would forfeit payment of its retrospective premiums.

  • Sincerely '

David H. A:Csossard * . . .

DAVID H. ASKEGAARD .

Deputy Administrator cc: .

Official File-PPB Reading-PSMESD .

'/ADM Reading-PPB Holt OGC PSMESD:

Hetypotl/HConner PPB:JWHoltimlw:5/26/76 .

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