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October 1998 Activists Target Long-Time TMI-1 Vermont Yankee in Nuclear-Free New Opponents Vow to Fight England Drive from an Allgllsf 6

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October 1998 Activists Target Long-Time TMI-1 Vermont Yankee in Nuclear-Free New Opponents Vow to Fight England Drive from an Allgllsf 6 Three Mile Island Alert The Newsletter of Three Mile Island Alert October 1998 Activists Target Long-time TMI-1 Vermont Yankee in Nuclear-Free New Opponents Vow to Fight England Drive from an AllgllSf 6. /998, Nucleonics Unit's Sale to AmerGen Week article rom a July 30. 1998. Nucleonics Week orticle With the closu(e of four nuclear A Pennsylvania citizens group that company's alleged problems. NRC power plants in New England in the has long alleged there were serious proposed the fine a few weeks ago last six years, anti-nuclear activists public health effects from the 1979 for equipment operability violations believe a "nuclear-free New Three Mile Island-2 disaster is at Limerick, and PECD hasn't yet England" is within reach, and devising strategy to fight the decided whether to payor protest it. Vermont Yankee is their next proposed sale ofTMI-1 from GPU (Ed. note: see related article, page target. Inc. to AmerGen Energy Co. 14.) The Nuclear Information & It's like "the Three Stooges are AmerGen -- a joint venture of Resource Service (NIRS), a selling a nuclear reactor to the four PECO Energy and British Energy -­ national, Washington-based group, Marx Brothers," said Eric Epstein, could pay up to $180-milIion for and the Citizens Awareness chairman ofThree Mile Island Alert. TMI-l. The lion's share ofthat Network, a New England group He alleges there are safety questions would be for the unit's fuel. TMl-l based in western Massachusetts, are and other concerns that merit V.S. has averaged 90010 capacity factor sponsoring a week-long activist regulators blocking the sale. for the 36 months ending May 31 training session later this month in and had no unplanned outages in the Vennont. TMI Alert unsuccessfully opposed first five months of 1998, according TMl-l restart in a six-year NRC to McGraw-Hill's World Nuclear According to organizers, in addition proceeding after the TMl-2 Performance. PECD's plants have to training and netv.:orki:lg sessions, mcltdmln. Ep~tein Sf.id the gr·:)up averaged 85%-86% capacity in the the ''Northeast Action Camp," to be wants TMI-l decorrunissioned, but same 36-month period. held within 10 miles ofVennont had GPU reached a deal to sell the Yankee August 21-28, will include unit to someone the citizens group Ifthe deal is approved. it will be the a public rally in Brattleboro calling considers a better operator -­ first sale ofa nuclear power plant in for the shutdown ofthe plant as Epstein specifically mentioned Duke the US. The announcement has well as a demonstration involving Power -- TMl Alert probably would generated some optimism for the civil disobedience at the plant site in not have objected to the sale, he U.S. nuclear industry, and even Vernon. "What we're doing is trying said. some critics say it marks the dawn to rekindle a coordinated effort of ofa "secondary market" for V.S. resistance," said Paul Gunter, ut Epstein said the group is uneasy director ofthe reactor watchdog about PECD's safety record. Epstein reactlc;:. W:~~~]1 project at NIRS. "There has cited a proposed $55,000 fine Ame ,. 0w.m-&-90 ea· I historically been local opposition to against PECD as evidence ofthe (.:'t'n'f,~"hoJc,pp<l~~J. column 1 (Contmued onpage 6) 11 Digitized 2018 ;-- .. ---::~..=" , Three Mile Island Alert October 1998 Three Mile Island Alert Beware of the Buyer Three Mile Island Alert (TMIA) is a A TMlA Opinion non-profit citizens' organization by: Eric Epstein. Chair. Three Mile Island Alert dedicated to the promotion ofsafe­ energy alternatives to nuclear power, On July 17, 1998, AmerGen, a - On May 27, 1998, the US especially to the Three Mile Island corporate venture comprised of Justice Department sued PECO for nuclear plant. PECO Energy and British Energy, more than $67 million in damages made an offer to buy Three Mile caused by PECO's alleged reneging Formed in 1977 after the construction Island-l for $100 million ($500 on a contract to buy 30% ofthe and licensing ofTMI Unit-l and the million less than its book value). River Bend nuclear power plant construction ofthe infamous Unit-2, The proposed sale would pay the owned by Cajun Electric Power TMIA is the largest and oldest safe­ current owners, General Public Cooperative. (Reuters, Wednesday, energy group in central Pennsylvania Utilities (GPU), $23 million for the May 27, 1998.) nuclear plant and $77 million for TMIA members interested in specific nuclear fuel over a five year period. - In March 1998, "The Company aspects ofnuclear power are Unfortunately, this marriage is a reported a net loss of$1.5 billion or encouraged tojoin one ofTMIA's Faustian Pact that would yield $6.80 per share. Included in these committees. These committees PECO and GPU short-term results was an extraordinary charge include: economic reliefwhile exposing area of$3.1 billion ($1.8 billion net of • Radiation Monitoring residents to increased health and taxes) or $8.24 per share, in the • ·Low-Ievel Radioactive Waste safety risks: fourth quarter to reflect the effects • Health Effects ofTMI ofthe December 1997 PUC order • Nuclear Plant Security - PECO Energy has the highest (as revised in January 1998) in the TMIA Planning Co_ciI electric rates in the state for all Company's restructuring Eric Epstein, Chair classes ofcustomer. (pa PUC, proceeding." (Report to Bill Cologie, Vice-Chair Electric Utility Operational Report, Shareholders, C. A. McNeill, Jr., BetsyRobinson, Treasurer January 30, 1997.) PECO also has Chairman, President and CEO, Kay Pickering, SecretaIy the second highest average PECO Energy.) MaryOsbom residential gas rates in the Scott Portzline Commonwealth. (pa PUC, Natural - PECO was ordered by the NRC Jeny Schultz Gas Utility Update, August 19, to shutdown Peach Bottom-2 and - 1998.) In addition, 'ephiladelphia 3 on March 31, 1997, due to Publisher - Kay Pickering Electric was significantly worse operator misconduct (e.g., sleeping, Editor - David Raeker-Jordan than average" in the handling of spitball battles, and purveying consumer complaints and "the "adult" magazines). This was the Three Mile Island Alert worst in the industry" in collections. first and only occasion that the 315 PetTer Street (Bureau ofPublic Liaison, Pa PUC, NRC ordered a nuclear plant shut Harrisburg,PA 17102 Fall 1995.) down. Zack Pate, President ofthe Phone: (717) 233-7897 Institute for Nuclear Power FAX: (717) 233-3261 - On June 12, 1998, the NRC Operations (an industry think-tank), fined PECO $55,000 for "two declared that Peach Bottom "was an On the Web at: program deficiencies that led to the embarrassment to the industry and http://www.enviroweb.orgltmial impaired performance ofthe Unit-3 to the nation .... The grossly emergency cooling pump ...." unprofessional behavior by a wide Email Address: (NRC Inspection Report Numbers range ofshift personnel ... reflects a [email protected] 50-277/98-03 and 50-278/98-06.) (Continued onpage 8, column 3) Page 2 Three Mile Island Alert October 1998 Sale and Early Closure of Units, A Glimpse at Industry's Future from a July 23, 1998, Nucleonics Week article Last Friday offered a illuminating area surrounding the plant at the Dennard said GPU Nuclear has peak into the U.S. nuclear industry's time ofsettlement. GPU spokesman S202-million in the near-term future. In the span ofjust JeffDennard said GPU could get an decommissioning trust fund and has a few hours, it was announced that additional S80-million based on the agreed to put in another $'118- one nuclear unit was being sold and formula. million at settlement. IfThat's the another was closing down limit ofour liability," Dennard said. prematurely. GPU had trouble defending portions ofthe deal-- such as why the Late last year, GPU estimated The sale ofGPU, Inc.'s Three Mile reactor was worth less in the deal decommissioning TMI-l would cost Island-l to the U.S.-Britishjoint than the fuel used to run it and why S409-million, Dennard said, "so we venture AmerGen Energy Co. was GPU agreed to buy the energy from feel that's a dam good deal for our hailed by analysts and industry the plant for a two-year period customers." Recovery ofthat money leaders. The Nuclear Energy (beginning in January 2000 ifthe from ratepayers is subject to state Institute (NEI) said the proposed deal closes December 31, 1999, as regulatory body reviews in both deal "demonstrates that nuclear planned). Pennsylvania and New Jersey. GPU power plants are well positioned for will maintain the fund at the competition in the electricity ''I'm not sure I can give you an investment direction ofAmerGen, generation business." Nuclear critics answer,"Dennard said. "This is the Jones said. called it a "fire sale." first and only deal ofits kind." As to the value ofthe reactor versus the Everybody A Winner Ifapproved, the deal would be the fuel, "that's what the market says first sale ofa nuclear power plant in they are worth,If Dennard added. Gary Hovis, an analyst with Argus the U.S. and the first ofa planned "We are breaking newground here. Research, said there were no losers series ofacquisitions by AmerGen, I don't think you can say it was in the sale. "It's good for PECD, formed last year by PECD Energy because ofthis or because ofthat. good for British Energy and good Co. and British Energy (BE) to buy These people were all breaking new for GPU,If he said. ffJ think the wave and operate U.S. nuclear plants. ground, and that is what they came ofthe future is nuclear power, and up with." this puts PECD far ahead ofthe AmerGen could pay as much as pack," Hovis said, adding that it Sl80-million under terms ofthe PECD spokesman Bill Jones said shows Ifa lot ofcourage" on the part transaction.
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