ML20198A140

Expresses Concern Re Indication from State Regulatory Sector That Util Initiative to Enhance Safe Operation of Facility Not in long-term Interest of Ratepayer & Public Health & Safety.Economic Incentives Need Not Effect Safe Operation

ML20198A140
Person / Time
Site:	San Onofre
Issue date:	09/17/1985
From:	Dircks W NRC OFFICE OF THE EXECUTIVE DIRECTOR FOR OPERATIONS (EDO)
To:	Allen H SOUTHERN CALIFORNIA EDISON CO.
Shared Package
ML20198A146	List: ML20198A140 ML20198A150 ML20199F498 ML20204A285
References
NUDOCS 8509230297
Download: ML20198A140 (2)

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• "84% ENCLOSURE 4 n

8 k is NUCLEAR REGULATORY COMMISSION UNITED STATES 5 .

! WAsMiwoTow. p. c. 20sss September 17, 1985 Mr. Howard P. Allen Chairman of the Board and Chief Executive Officer Southern California Edison Company P.O. Box 800 2244 Walnut Grove Av'enue Rosemead. California 91770

Dear Mr. Allen:

This is in response to your recent letter expressing concern about a pro-ceeding in which Southern California Edison is involved before the California Public Utilities Comission (CPUC). As you know the Nuclear Regulatory Comission does not become involved in proceedings before state public utility comissions. I have not seen or reviewed any of the recomendations by the staff of the CPUC. Thus. I can only respond to the generic concerns raised by the issues identified in your letter.

First. I would hope no one so misapprehends the NRC's efforts that they believe we issue a license whenever an applicant declares a project complete. We do make every effort to coordinate our reviews with the licensee's projected schedule for fuel load 50 that when the utility is ready, we should be in a position to make a licensing decision. However, a license is issued only after the NRC is satisfied that the facility is ready to operate.

Our regulatory scheme is based upon a set of minimum requirements deemed l

sufficient to provide reasonable assurance that the public health and safety l will be protected. However, we continually urge utilities to strive for excellence; that is, to take actions beyond our requirements which will I

enhance the public health and safety. In particular, we expect licensees to be alert to the experiences of other utilities and to apply any lessons learned without the need for explicit orders from the NRC. The Comission has strongly supported INPO efforts to that end and has deferred to industry in situations where it appears they are taking sufficient initiative. We have taken considerable steps in recent years to increase reliance on utility initiatives where possible, because such action recognizes and emphasizes that primary responsibility for the safe operation of a nuclear facility lies with l the utility. I view with concern any indication from the state regulatory l sector that a utility initiative to enhance the safe operation of its facility.

' if not undertaken at the direct behest of the NRC, is not in the long-term l interest of the ratepayer and the public health and safety, i

i

.e 2-Economic incentives need not have negative effects on safe reactor construction and operation. We trust that the CPUC will resolve the issues before it in a manner consistent with reactor safety. Nonetheless, we shall remain alert to indications of adverse influences on safety.

Sincerely, Signed William L Dircks.

William J. Dircks

.. . Executive Director for Operations l