ML17216A393

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
Person / Time
Site:	Saint Lucie
Issue date:	12/09/1985
From:	BARRY D M AFFILIATION NOT ASSIGNED
To:	PALLADINO N J NRC COMMISSION (OCM)
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ML17216A394	List: ML17216A393 ML17216A395 ML17216A396
References
NUDOCS 8601090488
Download: ML17216A393 (5)

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MARSHALL'BARRY,PH.D.ECONOMICCONSULTANT74ELIOTAVENUEWESTNEWTON.MASSACHUSETTS02165AREACODE617-332-1382NunzioJ.Palladino,DirectorU.S.NuclearRegulatoryCommissionWashington,D.C.20555December9,1985

DearMr.Palladino:

IhaveattachedacopyofaBostonGlobenewsarticlewhichaddressesdirectlytheconcernIexpressedinmyllP',lettertoyoudated,December5,1985.Thedecisionin1985byFPSLandtheNRCtoinitiallypostponethesafety.shutdownforrefurbishingafter10yearsHofon-lineoperationsattheHutchinsonIslandnuclearpowerhouseandthesubsequentwaiverbytheNRCofthesafetyshutdownin1986directlyimpactonthefinancialconditionoftheFloridaPowerandLightCompany.Needlesstosay,thepostponementandsubsequentwaiverofasafetyrequirementwhichwouldentailan18to24monthshutdownofthenuclearpowerhouseforrepairsandrefurbishingwilldramaticallyreducethecostsand,asaresult,increaseFP8L'sprofitsfromitsoperationsinFlorida.TheStateofFlorida'sPublicServiceCommissionhasbeenapprovingratesuchashutdownatthisplant.Yourwaiverhasresultedinthreedeleteriousimpactsontheconsumerofelectricalpower:1.Theratestructurechargedoverthelast10yearshasbeeninflatedtoanunjustifiablelevelsincethecostsoftheshutdownareficticious.2.Thesafetyofconsumershasbeenignoredinfavorofstrictlyeconomicconsiderationsofashortrunnature.3.Thepoliticalviabilityofnuclearpowerasanalter-nativesourceofenergyhasbeenthreatenedduetothissanctioned,unsafeoperatingcondition.AnotherThreeMileIslandincident,orworse,wouldbemorethanthepublicwouldaccept.IfactionistakenbytheNRCtoenforceallsafety8601090488860>0+~~PDRADOC)C0@000>>S,)PDR

~a12/9/85,page2requirementsforallnuclearoperations,therewouldbetwosignificantaccomplishments:1~TheerodingpublicconfidenceintheNRCasaprotectorofthe"publicinterest"wouldberestored,atleastinpart.TheacceptedviewthattheNRCservesasmerelyanindustryrepresentativeandapologistwouldbereversed'~Thehiatusinpublicregulationofnuclearpowerwhichcurrentlyexistswouldbefilled'singFloridaasanexample,theState'sPublicServiceCommissiononlyregulatestheprovisionandpricingofelectricalpowertoconsumerswithinthestate~Itisunderstaffedandstrainedtofillthisrolegivenitslimitedresources.Itmustoperateundertheassumptionthat.theNRCisensuringthesafetyofnuclearpowerplantsinboththeconstructionandoperationsphases.Itapprovesutilityratesbasedondatasubmittedbyprivateutilitiesasjustificationforrateincreases.ThesedataincludethecostsofNRCsafetyrequirements'ourwaiverofthismajorsafetyrequirementhasexposedFloridatoneedlessrisksaswellasinflatedcostsforelectricserviceFinally,pleasesendmeacopyoftheNRCstaffmemorandamentionedintheGlobearticle.Thankyouinadvanceforyourpromptactiontoreverseyourwa'iver,'andto'emovetheresultin'g'afetyhazard.hIIlSincerely,CC:DEMarshallBarry,Ph.DESenatorEdwardM.KennedySenatorJohnKerryRepresentativeBarneyFrankRepresentativeEdwardJ~MarkeyRepresentativeMichaelBilirakisJohnREMarks,IIIChairman,PublicServiceCommissionStateofFloridaD.MARSHALLBARRY.PH.D.ECONOMICCONSULTANTQe THEBOSTONGtOBEShTURDhYDECEMBER7!985USWorldV~~oqI!,statiesirms'narnces,antsaetByJohnRobinson....dumdatedJuly~IQSSthat"Ananctatstrain"ontheresourcesofhrkansasPowerd!LightCo.c!addpotentiallyhavepowerlaiscanbedl!ectl!ehtedttootheanImPactonthesafetyofthecomPany'sflnandalhealthoftheirparentcompan.lcs,accordingtoInternalstaffmemoran-.,,lnasubsequentmemo'DlrksraiseddaoftbeNuclearRegulatoryCommis-.!concernsaboutstateregulationsthat"lnsion.!.theInterestofshort-termeconomtcs,'pressuresmaycauseutilitiestohurryA'rsttl~OncethNRCsto~mvlcw'ork.takeshortcutsordelayactionInnanclalviabilityisrehtcdIssueshave..Dtrkssaidtheregulations.knownascausedofAclalconcern<<Ithlntheregula-performanceIncentives."mayaffectthi:toryagency.OneNRCstalferpointedtobahncebetweenaspectscondudvetothePublicServlpeCo.ofNewHampshire,safetyandaspectsthatcouMerodesafe-anditsSeabrooknuclearptantasanex-..ty."'amPOfaPqkPtJhat.raSm~tt'Pn.'heissueoffinancialvlab0ltyandcefAs.A-.~!~,.-isafetyhasbce'namatteroflitigationbe-WIIIIsmJ.Dirks.NRCexecutivedt~'tweennuclearpowercompanlcsandanti.forforoperations.wroteInamemo!an-nuclearenvlronmentallsts,whocontendthatutilitiescannotgetsuffldentfundsthroughtheratesettingprocesstoensuresafemalntanenceandoperationoftheirnuclearfacilities.TheNRC.slnci.eliminatingItsAnan-ctalreviewprocess.believestheretsnoconnectionbet<<certreviewsandsafety.ButPeterBradford.'aformerNRCcommissioner'whovotedagainstdrop-pingthereviewlute.saidyesterday.an'xaminationoftheTh!ecMlleIslandnu-clearplantacddcntdemonstratedthatA-~nandalconsMerattons"mightforceautilitytotakestepsthatwouldbeIncon-sistentwithsafeoperations."hNRCstaffmemberwhoaskednottobeIdentlAedbyname,saidthegrowingconcernInsidetheagencywasthatutili-ties,especiallyrelativelysmalloneslikePublicServiceofNewHampshire,wouldcutbackonexperiencedstiffandncccs-sarymalntalnencewhenfacedwithfl.nandalchoices."Scab!ookrepresentedaverytargeIn-crease.adoubling.ofPublicServiceofHSwHampshire'scapitalassets.Itbe-.cameclearastheywentalongtheycouldnotaffordtherapidgrowth.Thedanger'sacompanylikethatwillsay.'Let'scutback.'nfortunately,withanuclearpowerplant.Itallboltsdowntosafety."InaletterreleasedyesterdaytoNRCchairmanNunztoJ.Palladlno,Rcp.Ed-wardJ.Markeywrote."IArmlybelieve..thatautility'sAnanctaisituationshoutdnotbepermittedtoJustifyorexcuseanythreattopublichealthandsafety."Markey.chairmanoftheHousesub-committeeonenergyconservationandpower.askedthatthecommissionpro.~vide"speclAcprocessandcriteria"forpublicassessmentofanuclearlicensee's~'inancialqualiAcatlons.ahmNMOPhLLhDINO""..:~terfromIglrrF~ch,

~"SECYNUMBER:85-1071COSPONOENCECONTROLTICKETOFFICE.OFTHESECRETARYD.MarshallBarry~~LOGGINGDATE12/13/85ACTIONOFFICE:AUTHOR:AFFILIATION:LETTERDATE:ADDRESSEE:

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ACTION:DISTRIBUTION:SPECIALHANDLING:SIGNATUREDATE:EDOD.MarshallBarryWestNewton,Mass12/5/85FILECODENonefORTHECOMMISSIONPal1adinoTenyearsafetyrequirementforFP8LDirectReply...Suspense:Dec24Roc'dOffBOOnato...).~-..'.>~>>.)e~a~~~~~~~~'It~%4WQ 4