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Category:INTERNAL OR EXTERNAL MEMORANDUM
MONTHYEARML20217F0841999-10-0808 October 1999 Informs That During 466th Meeting of ACRS on 990930-1002, CEOG Proposal to Eliminate PASS from Plant Design & Licensing Bases for CEOG Plants,Were Reviewed.Discussion & Recommendations,Listed ML20217C5311999-10-0808 October 1999 Notification of 991027 Meeting with Representatives of Gpu in Rockville,Md to Discuss Recent Control Rod Surveillance Performance Issues at TMI-1.Proprietary Portions of Meeting Will Be Closed to Public ML20212K8901999-10-0505 October 1999 Notification of 991027 Meeting with Util in Rockville,Md to Discuss Status of Licensing Actions Proposed & Currently Under Review by NRC for TM1-1 ML20216J0151999-09-29029 September 1999 Notification of 991020 Meeting in Forked River,Nj to Discuss Licensee 990922,response to NRC & Other Info Addressing Sale of Portion of Land That Is Part of Plant Site ML20216G3671999-09-10010 September 1999 Forwards CNWRA Program Manager Periodic Rept (Pmpr) for Period 990731-0827 ML20210U7571999-08-20020 August 1999 Forwards Info Received from Gpu Nuclear,Inc on 990820 in Preparation for 990823.Requests Info Be Docketed ML20210C9991999-07-22022 July 1999 Revised Notification of 990813 Meeting with Gpu Nuclear,Inc Rockville,Maryland to Discuss TMI-1 Licensing Action Status. Meeting Date Changed ML20210E9511999-07-12012 July 1999 Notification of 990805 Meeting with Representative of Gpu Nuclear,Inc in Rockville,Md Re Plant,Unit 1 Licensing Action Status ML20212H9621999-06-23023 June 1999 Revised Notification of Meeting with Gpu Nuclear,Inc to Discuss Proposed Mods to RBS Sys Procedures & HPI Cross Connect Lineup.Meeting Rescheduled to 10 A.M. on 990713 ML20195H8521999-06-18018 June 1999 Requests That Encl Questions,Faxed to Gpu Nuclear,Inc on 990616,be Docketed,In Preparation for Forthcoming Conference Call Re TS Change Request 248, Remote Shutdown Sys, ML20195H9911999-06-15015 June 1999 Notification of 990707 Meeting with Util to Discuss Licensee Proposed Mods to Reactor Bldg Spray Procedures & High Pressure Injection Cross Connection Lineup ML20206F2921999-05-0505 May 1999 Forwards Draft Questions Which Were Faxed to Licensee for TMI Unit 1,GPUN on 990505 in Preparation for 990506 Conference Call on TS Change Request 279 ML20206D1291999-04-28028 April 1999 Notification of 990507 Meeting with Gpu Nuclear,Inc in Rockville,Maryland to Discuss Three Mile Island,Unit 1 Licensing Action Status ML20205N3161999-04-0909 April 1999 Notification of Significant Licensee Meeting 99-19 with Util on 990423 to Discuss Emergency Feedwater Flow Discrepancies ML20197G6381998-12-0707 December 1998 Forwards Program Manager Period Rept (Pmpr) for Period 981024-1120 ML20196E2801998-11-30030 November 1998 Discusses Closeout of TAC MA1607 Re Cross Potential for common-cause High Pressure Injection Pump Failure IR 05000289/19983011998-11-0404 November 1998 Forwards NRC Operator Licensing Exam Rept 50-289/98-301 with as Given Written Exam for Tests Administered on 980824-27 at Facility ML20154G3451998-10-0101 October 1998 Rev 2 to Notification of Significant Licensee Meeting 97-73 on 981023 in King of Prussia,Pa to Discuss Actions Taken Re Engineering Corrective Action Performance Assessment Team Findings ML20153D9681998-09-24024 September 1998 Notification of 981006 Meeting W/Gpu Nuclear,Inc in Rockville,Md to Discuss Status of Licensing Actions Proposed & Currently Under Review by NRC for TMI-1 ML20237E8381998-08-28028 August 1998 Notification of 980917 Meeting W/Gpu Nuclear,Inc & Amergen in Rockville,Md to Discuss Sale & Transfer of TMI-1 from Gpu Nuclear,Inc to Amergen ML20237E4591998-08-20020 August 1998 Submits Rev 1 to Notification of Significant Licensee Meeting 98-73 W/Util in Middletown,Pa to Discuss Actions Taken Re Engineering Corrective Action PA Team Findings. Meeting Postponed ML20237C9401998-08-14014 August 1998 Notification of Significant Licensee Meeting 98-73 on 980828 W/Gpu Nuclear,Inc in Middletown,Pa to Discuss Actions Taken Re Engineering C/A Performance Assessment Team Findings ML20247M2191998-05-19019 May 1998 Notification of 980604 Meeting W/Gpu Nuclear Inc in Royalton,Pa to Discuss Status of Licensing Actions Proposed & Currently Under Review by NRC for TMI-1 ML20216B6871998-05-0808 May 1998 Notification of 980527 Meeting W/Representative of Gpu Nuclear,Inc in Rockville,Md to Discuss Licensee 980324 Submittal Re Control Room Habitability at TMI-1 IR 05000289/19980991998-02-26026 February 1998 Notification of Significant Licensee Meeting 98-22 W/Util on 980318 to Discuss SALP for Period Covering 960805-980124,as Documented in SALP Rept 50-289/98-99 IA-98-345, Discusses Licensing Basis for Letdown Line Break Outside Containment for Plant,Unit 11998-02-0606 February 1998 Discusses Licensing Basis for Letdown Line Break Outside Containment for Plant,Unit 1 ML20154B7931998-02-0606 February 1998 Discusses Licensing Basis for Letdown Line Break Outside Containment for Plant,Unit 1 ML20199H6701997-11-20020 November 1997 Notifies of 971212 Meeting W/Gpu in Rockville,Md to Discuss Control Room Habitability at Unit 1 ML20199E7071997-11-14014 November 1997 Revised Notification of 971119 Meeting W/Gpu Nuclear Corp,In Rockville,Md to Discuss Control Room Habitability at TMI-1 Nuclear Facility.Meeting Cancelled Until Further Notice ML20199B3111997-11-0606 November 1997 Notifies of 971119 Meeting W/Gpu in Rockville,Md to Discuss Control Room Habitability ML20212G9531997-11-0505 November 1997 Forwards Gpu SE Re Review of AP600 Shutdowm Ts.Section B.3.9.4 of STS Cites Gpu Nuclear SE 0002000-001 Rev 0,880520 as Ref E Temporary Containment Penetration Closure Devices Equivalent to Valve or Blind Flange ML20216E9871997-09-0808 September 1997 Notification of 970910 Meeting W/Util in Rockville,Md to Discuss Potential Dose Consequences from Postulated Steam Line Break & Postulated Accident Sys Leakage Limits ML20149D8881997-07-11011 July 1997 Notification of Significant Licensee Meeting 97-86 W/Util on 970725 in King of Prussia,Pa to Discuss Apparent Violations Re Failure to Recognize General Emergency Condition During 970305 Exercise ML20140G6231997-06-0505 June 1997 Notification of 970716 Meeting W/Gpun in King of Prussia, Pennsylvania for Presentation & Discussion Re Root Cause Determination for Recent QC Issues Performed by Gpun Per NRC CAL ML20151U4191997-05-23023 May 1997 Discusses Review of Two Addl Concerns Identified in 970407 Memo to Recipient from Special Insp Branch Re Addl Open Items Associated W/Dec 1996 Design Insp Rept 50-289/96-201 ML20148D9851997-05-21021 May 1997 Notification of Significant Licensee Meeting 97-57 W/Util on 970528 to Discuss Formal Exit Meeting for Licensee Remedial Emergency Preparedness Exercise on 970513 & Licensee Discussion Re NRC CAL ML20141E5381997-05-15015 May 1997 Notification of 970530 Meeting W/Representatives of Gpu Nuclear Corp in Rockville,Md to Discuss Status of Licensing Activities Associated W/Plant,Unit 1 ML20138D3161997-04-21021 April 1997 Notification of Significant Licensee Meeting 97-47 W/Util on 970430 to Discuss Root Cause Analysis of 970305 Emergency Preparedness Drill Weaknesses ML20140D5251997-04-18018 April 1997 Notification of 970502 Meeting W/Util in Rockville,Md to Discuss Schedules & Resolution of Issues Relating to Thermo-Lag Fire Barriers ML20135F8801997-03-0404 March 1997 Notification of Significant Licensee Meeting 97-27 W/Util on 970317 to Discuss Emergency Preparedness Insp Exit Meeting ML20138M3111997-02-20020 February 1997 Notification of 970306 Meeting W/Gpu in Rockville,Md to Discuss Three Mile Island,Unit 1 Reactor Pressure Vessel pressure-temp Limit Curves ML20147D8391997-02-12012 February 1997 Notification of 970220 Meeting W/Util Representatives in Rockville,Md to Discuss Status of Licensing Activities Associated W/Plant,Unit 1 Facility ML20133Q3031997-01-16016 January 1997 Notification of Significant Licensee Meeting 97-08 W/Util on 970131 in Middletown,Pa Re Safety Sys Functional Insp Exit Meeting ML20149M0471996-12-10010 December 1996 Forwards Internet Mail Received from PM Blanch ML20129K3731996-11-21021 November 1996 Notification of 961126 Meeting W/Gpun in North Bethesda,Md to Discuss TMI-1 SG Issues ML20135B0871996-11-15015 November 1996 Notification of Significant Licensee Meeting 96-118 W/Util on 961122 to Discuss Plant Motor Operated Valve Testing Program self-assessment ML20129K2561996-11-0505 November 1996 Notification of Significant Licensee Meeting 96-109 W/Listed Attendees on 961202-03 in Philadelphia,Pa to Provide Training,Resolve Interagency Exercise Scheduling Conflicts & Discuss Current Issues in Emergency Preparedness ML20136E3011996-10-31031 October 1996 Forwards Schedule for Activities at Plant for Next Few Months ML20134E9191996-10-29029 October 1996 Forwards Rationale for Inital Plants Selected for Design Insps & for Plants Considered for Second Quarter FY97 Design Insps ML20128G1661996-10-0303 October 1996 Summarizes 960924 Meeting W/Gpu Nuclear Corp in Rockville,Md Re Preliminary Responses to Staff RAI Concerning Request to Change EALs for TMI-1.List of Participants & Copy of Preliminary Response to RAI Encl 1999-09-29
[Table view] Category:MEMORANDUMS-CORRESPONDENCE
MONTHYEARML20217C5311999-10-0808 October 1999 Notification of 991027 Meeting with Representatives of Gpu in Rockville,Md to Discuss Recent Control Rod Surveillance Performance Issues at TMI-1.Proprietary Portions of Meeting Will Be Closed to Public ML20217F0841999-10-0808 October 1999 Informs That During 466th Meeting of ACRS on 990930-1002, CEOG Proposal to Eliminate PASS from Plant Design & Licensing Bases for CEOG Plants,Were Reviewed.Discussion & Recommendations,Listed ML20212K8901999-10-0505 October 1999 Notification of 991027 Meeting with Util in Rockville,Md to Discuss Status of Licensing Actions Proposed & Currently Under Review by NRC for TM1-1 ML20216J0151999-09-29029 September 1999 Notification of 991020 Meeting in Forked River,Nj to Discuss Licensee 990922,response to NRC & Other Info Addressing Sale of Portion of Land That Is Part of Plant Site ML20216G3671999-09-10010 September 1999 Forwards CNWRA Program Manager Periodic Rept (Pmpr) for Period 990731-0827 ML20210U7571999-08-20020 August 1999 Forwards Info Received from Gpu Nuclear,Inc on 990820 in Preparation for 990823.Requests Info Be Docketed ML20210C9991999-07-22022 July 1999 Revised Notification of 990813 Meeting with Gpu Nuclear,Inc Rockville,Maryland to Discuss TMI-1 Licensing Action Status. Meeting Date Changed ML20210E9511999-07-12012 July 1999 Notification of 990805 Meeting with Representative of Gpu Nuclear,Inc in Rockville,Md Re Plant,Unit 1 Licensing Action Status ML20212H9621999-06-23023 June 1999 Revised Notification of Meeting with Gpu Nuclear,Inc to Discuss Proposed Mods to RBS Sys Procedures & HPI Cross Connect Lineup.Meeting Rescheduled to 10 A.M. on 990713 ML20195H8521999-06-18018 June 1999 Requests That Encl Questions,Faxed to Gpu Nuclear,Inc on 990616,be Docketed,In Preparation for Forthcoming Conference Call Re TS Change Request 248, Remote Shutdown Sys, ML20195H9911999-06-15015 June 1999 Notification of 990707 Meeting with Util to Discuss Licensee Proposed Mods to Reactor Bldg Spray Procedures & High Pressure Injection Cross Connection Lineup ML20206F2921999-05-0505 May 1999 Forwards Draft Questions Which Were Faxed to Licensee for TMI Unit 1,GPUN on 990505 in Preparation for 990506 Conference Call on TS Change Request 279 ML20206D1291999-04-28028 April 1999 Notification of 990507 Meeting with Gpu Nuclear,Inc in Rockville,Maryland to Discuss Three Mile Island,Unit 1 Licensing Action Status ML20205N3161999-04-0909 April 1999 Notification of Significant Licensee Meeting 99-19 with Util on 990423 to Discuss Emergency Feedwater Flow Discrepancies ML20203E0321999-02-11011 February 1999 Staff Requirements Memo Re 990211 Affirmation Session in Rockville,Md (Open to Public Attendance) Re Secys 99-044 & 99-045 ML20197G6381998-12-0707 December 1998 Forwards Program Manager Period Rept (Pmpr) for Period 981024-1120 ML20196E2801998-11-30030 November 1998 Discusses Closeout of TAC MA1607 Re Cross Potential for common-cause High Pressure Injection Pump Failure IR 05000289/19983011998-11-0404 November 1998 Forwards NRC Operator Licensing Exam Rept 50-289/98-301 with as Given Written Exam for Tests Administered on 980824-27 at Facility ML20154G3451998-10-0101 October 1998 Rev 2 to Notification of Significant Licensee Meeting 97-73 on 981023 in King of Prussia,Pa to Discuss Actions Taken Re Engineering Corrective Action Performance Assessment Team Findings ML20153D9681998-09-24024 September 1998 Notification of 981006 Meeting W/Gpu Nuclear,Inc in Rockville,Md to Discuss Status of Licensing Actions Proposed & Currently Under Review by NRC for TMI-1 ML20237E8381998-08-28028 August 1998 Notification of 980917 Meeting W/Gpu Nuclear,Inc & Amergen in Rockville,Md to Discuss Sale & Transfer of TMI-1 from Gpu Nuclear,Inc to Amergen ML20237E4591998-08-20020 August 1998 Submits Rev 1 to Notification of Significant Licensee Meeting 98-73 W/Util in Middletown,Pa to Discuss Actions Taken Re Engineering Corrective Action PA Team Findings. Meeting Postponed ML20237C9401998-08-14014 August 1998 Notification of Significant Licensee Meeting 98-73 on 980828 W/Gpu Nuclear,Inc in Middletown,Pa to Discuss Actions Taken Re Engineering C/A Performance Assessment Team Findings ML20248H7001998-05-20020 May 1998 Staff Requirements Memo Re SECY-98-071,exemption to 10CFR72.102(f)(1) Seismic Design Requirement for TMI-2 ISFSI ML20247M2191998-05-19019 May 1998 Notification of 980604 Meeting W/Gpu Nuclear Inc in Royalton,Pa to Discuss Status of Licensing Actions Proposed & Currently Under Review by NRC for TMI-1 ML20216B6871998-05-0808 May 1998 Notification of 980527 Meeting W/Representative of Gpu Nuclear,Inc in Rockville,Md to Discuss Licensee 980324 Submittal Re Control Room Habitability at TMI-1 IR 05000289/19980991998-02-26026 February 1998 Notification of Significant Licensee Meeting 98-22 W/Util on 980318 to Discuss SALP for Period Covering 960805-980124,as Documented in SALP Rept 50-289/98-99 ML20154B7931998-02-0606 February 1998 Discusses Licensing Basis for Letdown Line Break Outside Containment for Plant,Unit 1 IA-98-345, Discusses Licensing Basis for Letdown Line Break Outside Containment for Plant,Unit 11998-02-0606 February 1998 Discusses Licensing Basis for Letdown Line Break Outside Containment for Plant,Unit 1 ML20199H6701997-11-20020 November 1997 Notifies of 971212 Meeting W/Gpu in Rockville,Md to Discuss Control Room Habitability at Unit 1 ML20199E7071997-11-14014 November 1997 Revised Notification of 971119 Meeting W/Gpu Nuclear Corp,In Rockville,Md to Discuss Control Room Habitability at TMI-1 Nuclear Facility.Meeting Cancelled Until Further Notice ML20199B3111997-11-0606 November 1997 Notifies of 971119 Meeting W/Gpu in Rockville,Md to Discuss Control Room Habitability ML20212G9531997-11-0505 November 1997 Forwards Gpu SE Re Review of AP600 Shutdowm Ts.Section B.3.9.4 of STS Cites Gpu Nuclear SE 0002000-001 Rev 0,880520 as Ref E Temporary Containment Penetration Closure Devices Equivalent to Valve or Blind Flange ML20216E9871997-09-0808 September 1997 Notification of 970910 Meeting W/Util in Rockville,Md to Discuss Potential Dose Consequences from Postulated Steam Line Break & Postulated Accident Sys Leakage Limits ML20149D8881997-07-11011 July 1997 Notification of Significant Licensee Meeting 97-86 W/Util on 970725 in King of Prussia,Pa to Discuss Apparent Violations Re Failure to Recognize General Emergency Condition During 970305 Exercise ML20140G6231997-06-0505 June 1997 Notification of 970716 Meeting W/Gpun in King of Prussia, Pennsylvania for Presentation & Discussion Re Root Cause Determination for Recent QC Issues Performed by Gpun Per NRC CAL ML20151U4191997-05-23023 May 1997 Discusses Review of Two Addl Concerns Identified in 970407 Memo to Recipient from Special Insp Branch Re Addl Open Items Associated W/Dec 1996 Design Insp Rept 50-289/96-201 ML20148D9851997-05-21021 May 1997 Notification of Significant Licensee Meeting 97-57 W/Util on 970528 to Discuss Formal Exit Meeting for Licensee Remedial Emergency Preparedness Exercise on 970513 & Licensee Discussion Re NRC CAL ML20141E5381997-05-15015 May 1997 Notification of 970530 Meeting W/Representatives of Gpu Nuclear Corp in Rockville,Md to Discuss Status of Licensing Activities Associated W/Plant,Unit 1 ML20138D3161997-04-21021 April 1997 Notification of Significant Licensee Meeting 97-47 W/Util on 970430 to Discuss Root Cause Analysis of 970305 Emergency Preparedness Drill Weaknesses ML20140D5251997-04-18018 April 1997 Notification of 970502 Meeting W/Util in Rockville,Md to Discuss Schedules & Resolution of Issues Relating to Thermo-Lag Fire Barriers ML20135F8801997-03-0404 March 1997 Notification of Significant Licensee Meeting 97-27 W/Util on 970317 to Discuss Emergency Preparedness Insp Exit Meeting ML20138M3111997-02-20020 February 1997 Notification of 970306 Meeting W/Gpu in Rockville,Md to Discuss Three Mile Island,Unit 1 Reactor Pressure Vessel pressure-temp Limit Curves ML20147D8391997-02-12012 February 1997 Notification of 970220 Meeting W/Util Representatives in Rockville,Md to Discuss Status of Licensing Activities Associated W/Plant,Unit 1 Facility ML20133Q3031997-01-16016 January 1997 Notification of Significant Licensee Meeting 97-08 W/Util on 970131 in Middletown,Pa Re Safety Sys Functional Insp Exit Meeting ML20149M0471996-12-10010 December 1996 Forwards Internet Mail Received from PM Blanch ML20129K3731996-11-21021 November 1996 Notification of 961126 Meeting W/Gpun in North Bethesda,Md to Discuss TMI-1 SG Issues ML20135B0871996-11-15015 November 1996 Notification of Significant Licensee Meeting 96-118 W/Util on 961122 to Discuss Plant Motor Operated Valve Testing Program self-assessment ML20129K2561996-11-0505 November 1996 Notification of Significant Licensee Meeting 96-109 W/Listed Attendees on 961202-03 in Philadelphia,Pa to Provide Training,Resolve Interagency Exercise Scheduling Conflicts & Discuss Current Issues in Emergency Preparedness ML20136E3011996-10-31031 October 1996 Forwards Schedule for Activities at Plant for Next Few Months 1999-09-29
[Table view] |
Text
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7, UNITED STATES NUCLEAR REGULATORY COMMISSION
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MAY 2 41985 f
MEMOP.ANDUM FOR: Harold R. Denton, Director
, Office of Nuclear Reactor Regulation FROM: G. Wayne Kerr, Director Office of State Programs
SUBJECT:
FINANCIAL PEVIEW OF GENERAL PLBLIC UTILITIES CORPORATION -
OPERATION OF THREE MILE ISLAND, UNIT NO. 1 As requested, enclosed is a financial review of General Pubite Utilities Corporation including its ability to fund operating c9sts of TMi-1.
This review was performed by James Petersen of this office who may be reached on x29883 if there are question).
/&r /
.. yn Ke . Dirge r
, Of ice of State Pro rams
Enclosure:
As stated cc w/ enc 1:
J. Stolz NRR J. Goldberg, ELD E. Christenbury, ELD J
d i
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"!P"A883 8Po!86 I
PM
FINANCIAL REVIEW OF GENERAL PUBLIC UTILITIES CORPORATION {
OPERATION OF THREE MILE ISLAND UNIT NO. 1 l
!. Background By order dated March 23, 1981 (CLI-81-3) (13 NRC 291, 297 (1981)), the NRC removed the financial qualifications issue from review and litigationintheTMIy1restartproceeding.1/ In the same order the Comission directed the staff "to continue to monitor the licensee's financial resources as long as is necessary and to report any health and safety implications to the Comission." (slip, op,, p. 9). At the time of the order, the staff had a'1 ready begun to receive General Public Utilities' (GPU) financial reports (in connection with the restart ipsue) by which it could begin the process of monitoring the licensee's financial condition in accordance with the order. By letter dated Octobw 5,1981, from J. Stolz, Office of Nuclear Reactor Regulation (NRR),toH.Hukill,MetropolitanEdisonCompany,thestaff fomalized a requirement whereby the licensee would submit specified, periodic financial reports to support the monitoring requirement. GPU has provided the reports periodically as required. In its II ~l't~is noted that on September 12,1984 the NRC published a final rule (49 Federal Register 35747) which generically eliminated financial qualification review ~and findings for electric utilities that are applying for power reactor operating licenses if the applicant's rates are regulated or if it is ' authorized to set its own rates. The rule, which became effective October 12, 1984, applies both to OL reviews and proceedings that were ongoing at that time as well as to future OL ieviews and proceedings. The' Comission retained its authority to require financial infomation in individual cases as may be necessary l for the Comission to determine whether an application should be granttd or denied t.,r whether a license should be modified or revoked.
The final ru}e is the subject of a currently pending challenge before l
t the U.S.j Court of Appeals for the D.C. Circuit.
n
l March 1,1985 information notice regarding progress of the THI-2 cleanup (50 Federal Register 9143; March 6,1985) the Conunission stated that "the funding situation is as assured as reasonably possible,"andthatitwould"continuetomonjtorcloselythefunding situation." i Since the time of the March 23, 1981 Order, the Office of State Programs (OSP) has monitored GPU's overall financial condition 4
including the company's efforts to fund TMI-2 cleanup, As products of this monitoring function, OSP has continued to provide a nunter of periodic reports to NRR as warranted by GPU financial developments and when requested by NRR and the Commission and has provided both input to several NRR papers on cleanup and material for NRC testimony.
II. Analysis 1
L P
General GPU is the parent holding company of the TM1 licensee and operator, GPU Nuclear Corporation (GPUNC), and of three operating utility subsidiaries; Metropolitan Edison Company (Met-Ed), Pennsylvania
, ElectricCompany(Penelec),andJerseyCentralPower&LightCompany (JCP&L). All of these subsidiaries are wholly-owned by GPU. The three operating subsidiaries are the owners of TMI Units 1 and 2 in the following percentages: Met-Ed - 50 percent; Penelec - 25 percent; and 'JCP&L - 25 percent. The three owners are responsible for l providing TMI operating and maintenance expenses in proportion to L , , , _ _ # . . _ _ - - - - - ~
their relative ownership shares. The financial condition and !
capabilityofGPUandofthelicensee,GPpNC,isessentiallythe combined financial condition and capability of the three operating I subsidiaries that provide utility service to the public and collect revenues for that service. i
! l The three GPU operating utility companies provide electricity to about 1.7 million customers (and a total population exceeding 4 million) in service territories encompassing about half the land area of Pennsylvania and New Jersey. About 34 percent of the electricity -
distributed by the operating companies is used by residential customers, 26 percent by commercial customers, 35 percent by industry and 5 percent by other customers. Although GPU suffered several cash flow crises during the first several years following the TMI-2 accident, its cash flow, earnings and overall financial condition have improved substantially from that time to the present. The cash flow crises were alleviated by a combination of actions including company austerity measures and relief from the two public utility comissions that regulate the rates of the three operating companies: the Pennsylvania Public Utility Comission (PaPUC) for Met-Ed and Penelec; and the New Jersey Board of Public Utilities (NJBPU) for JCP&L. To the staff's knowledge, the three companies did not miss the payment of financial obligations during the cash flow crises. Such financial crises have not reoccurred. GPU's system-wide operating revenues have i
increased from $1.5 billion in 1979 to $2.7 hillion in 1984. Annual net income (earnings after the payment of all operating expenses, interest, taxes, and preferred dividends) has increased from $96 l
i million to $148 million over the same period. Comon stock cash l
l dividends were suspended after the accident and continue to be suspended at the current time as a cash conservation measure. GPU reports provided to the staff indicate that all costs of furnishing utility service to the public are being covered by company resources, primarily customer revenues; indeed a significant profit is being earned.
_TMI-1 Costs and Funding At our request GPU provided operating cost estimates and decomissioning cost estimates for TMI-1, as well as a statement of the sources of funds to cover such costs. U The following annual operating cost estimates were provided for the first five years of operation after restart. The estimates assume that restart occurs in 1985.
TMI-1 Operating Cost Estimates (1985 dollars in millions)
Year 1 _ Year 2 Year 3 Year 4 Year 5 Operating and Maintenance $ 58 $ 63 $ 76 Fuel $ 80 $ 88 20 20 20 20 20 Taxes 38 38 38 38 38 Depreciation 18 18 18 18 18 Return on Investment 46 49 51 58 64 Total ITN 3TE T707 371T 372H U ost C
and source of funds infonnation was provided in telephone conversations on May 22-23, 1985, with M. Morrell, GPU Assistant Treasurer. We have requested that the information provided be confirmed in writing to the staff. Other financial information in this review is derived from the periodic reports provided by GPU in support of the staff's monitoring function.
GPU plans to cover all costs of operating TMI-1 in the same manner as it covers the costs of operating other utility plants; i.e., through revenues from sale of electricity to customers. State public utility commission orders are already in place (PaPUC - January 22, 1984; NJBPU - November 16,1983) that will restore TMI-1 to the rate base when the unit has achieved 35 percent capacity factor for 100 consecutive hours. Restoration of the unit to the rate base means that GPU will again begin to receive a return of its TMI-1 investment through depreciation charges and a return on the investment (profit),.
These will both be provided through revenues from customers as will the other operating expenses listed above. M GPU's last decomissioning cost estimate for TMI-1 was made in 1978 and assumed that the entombment method would be used. The estimated cost was about $40 million in 1978 dollars.- In current dollars, that amount would be about $58 million. No new GPU cost estimate has been .
made pending an NRC rulemaking on decomissioning. GPU indicates that, depending on the mode and timing of decomissioning chosen, costs could be higher than the earlier estimate. In its May 13, 1985 comments to the NRC on the proposed decommissioning rule (50 Federal Register 5600, February 11,1985), the Utility Decomissioning Groyp E GPU infonns the staff that customer rates in both Pennsylvania and New Jersey are scheduled to be decreased in connection with TMI-1 restart. This is due primarily to the cost of electricity to be produced by the unit being lower than the cost of purchased replacement power.
l l
(a group of 13 nuclear plant licensees including the GPU companies) estimated that decommissioning a nuclear plant by immediate or deferred dismantlement could cost between $120-$170 million.
The GPU companies have been allowed to collect funds from ratepayers for eventual TMI-1 decommissioning based on the 1978 entombment estimate. In accordance with PaPUC directives, decommissioning funds collected by Met-Ed and Penelec are deposited in a funded reserve that is dedicated to the payment of eventual decommissioning costs. JCP&L, in accordance with NJBPU directives, is permitted to use the decommissioning funds for its ongoing cash needs. This arrangement is called an "unfunded reserve." GPU indicates that it expects that the NJBPU will grant its request to convert the JCP&L decommissioning collections to a funded reserve, as in Pennsylvania. Whatever the funding method and revisions to estimated decommissioning costs GPU expects to be allowed to continue collections for decommissioning from customers in both States in the future. At the current time, pending the adoption of a final rule. NRC regulations require no particular method for financing decommissioning costs of a nuclear plant.
THI-2 Cleanup Funding l
l GPU has received cash payments from all cleanup funding contributors suggested in the plan set forth by Pennsylvania Governor Thornburgh t
("theThornburghPlan"). The NRC has recently indicated that "there appears to be reasonable assurance that there will be adequate funding for the cleanup for the next several years " and "that the funding
situation is as assured as reasonably possible." (50 Federal Register 9143, March 6,1985.) A recent significant development has been the receipt by GPU of over $20 million for cleanup from the nuclear utility industry. These funds are the first installment of an industry commitment to provide a total of $150 million to the cleanup over six years. The industry contribution had previously been the one remaining, major uncommitted source of funding under the Thornburgh Plan.
. Recently, we conservatively estimated that GPU was within $57 million 4
of having a total funding commitment to cover the remaining estimated cost of the cleanup ($492 million as of January 1,1985). Using this conservative approach, we would exclude $24 million of Pennsylvania and New Jersey funds not yet appropriated and $33 million of DOE funds not yet appropriated from GPU's estimate of total committed funds.
This would amount to a $57 million shortfall of connitted funds t.elow the estimated total cost of cleanup. As these funds are appropriated the shortfall would be reduced or eliminated, assuming that funds from other contributors are also provided as committed.
III. Conclusion For the reasons set out in detail above, we have concluded that GPU Nuclear Corporation (through the resources of the three GPU System operating utilities) has reasonable assurance of obtaining the funds necessary to cover estimated TMI-1 operating costs for the period of the license, plus the estimated costs of permanently shutting the i
facility down and maintaining it in a safe condition (decommissioning costs). GPU's overall financial condition has improved substantially since the several-year period following the accident. All costs of providing utility stevice to the public are being covered by revenues and the companies are earning a significant profit. As also discussed above, GPU has obtained cleanup funding commitments (and at least partial cash payments) from all sources suggested in the Thornburgh Plan. Assuming that all contributors fulfill their commitments, the cleanup appears to be adequately funded for the next several years.
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