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- SEP 121979

City of Reading Department of Public Affairs Bureau of City Clerk ATTN: Ms. Ruth M. Thompson City Clerk City Hall Reading, 196D1

Dear Ms. Thompson:

' . This is in response to your letter dated August 17, 1979, and the enclosed copy of Resolution No. 526, with respect to the City of Reading's opposition to any action requiring customers of Metropolitan Edison Company to pay fines resulting from the incident at Three Mile Island Unit 2. , We recognize the concern of the customers of the utility as to the possible " pass-through" of civil penalties that may be assessed against Metropolitan Edison Company, although there has been no decision at this time as to enforce- aent action that may be taken by the Nuclear Regulatory Commission (NRC) against the utility with respect to the incident at Three Mile Island Unit 2. Such matters as rate structure, however, are not within the purview of the NRC but are solely within the province of the State. Any decision as to the " pass- through" of penalties or costs related to the incident would be under the jurisdiction of the state public utility regulatory agency. On this point, in connection with the NRC's general enforcement policy, the NRC has surveyed the states to find out how NRC civil penalties are handled in utility rate cases. As a result of that survey, it was learned that the Commonwealth of Pennsylvania has a formal policy on " pass-through" and does not permit " pass-through" unless the utility's solvency is threatened.

Since, rely,

% Victor Stello, Jr.

cc: Senator H. John Director . Senator Richard S. Schweiker Office of Inspection Congressman and Enforcement y.g 42 Distribution: V. Stello, IE J. P. Murray, ELD EDO Reading T. Brockett, IE D. Thompson, IE Pun Boyce Grier, RI !;. ".seley, IE IE Files IE Reading WPU:SD Office X XqdF R AD . E W ELD V 9/10/79 Surname rockett GGM er Moseley DThompson VJt 1To JPMurray Job K Date 9{/79 9 79 9///79 9// /79 9/0/79 9/7/79

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