February 7, 2000

Contact:

Tim Judson - Citizens Awareness Network: 315-422-4924

Kyle Rabin - Environmental Advocates: 518-462-5526 ext. 238

PRESS RELEASE

Nuclear Safety Problems

Shadow NYPA’S Reactor Sale

The New York Power Authority’s planned announcement of reactor sale shadowed by safety problems at NYPA’s Fitzpatrick nuclear power reactor

The New York Power Authority (NYPA) is expected to announce as early as tomorrow February 8, that they have reached an agreement with Entergy Nuclear, Inc. on the sale of the Indian Point 3 and J.A. Fitzpatrick reactors. The announcement was originally scheduled for last Tuesday, February 1, but was postponed. Instead, on February 1, the Nuclear Regulatory Commission (NRC) announced a meeting, scheduled for today, February 7, with NYPA to discuss recent safety systems failure. The NRC is deciding whether to issue a violation against NYPA for poor maintenance and oversight, which has resulted in repeated failure of the Fitzpatrick plant’s emergency cooling systems for more than a year. This safety feature failed again last Monday, January 31, but NYPA has been unable to identify the causes for the malfunction.

The decision to postpone the announcement comes as no surprise to nuclear industry watchdogs. "It doesn't take a rocket scientist, or a nuclear engineer for that matter, to figure out that NYPA doesn't want a violation casting a shadow over this deal," says Dr. Steven Penn, a physicist in Syracuse and member of Central New York Citizens Awareness Network (CNY-CAN). The system in question is the High Pressure Coolant Injection system (HPCI), which, according to the NRC, "is an important mitigating system during a loss-of-offsite power event, and it is likely the system would not have been available to perform its intended function during a period of greater than 30 days." NYPA neglected to test the system as recommended by its manufacturer, leading to its failure during an emergency shutdown last October. As of last week, repeated attempts over the last three months to repair the system have failed even to identify the cause of the problem, and the continuing failures. “The February 7 meeting is a chance for NYPA to convince NRC not to issue a violation,” said Penn.

The public might wonder why Entergy still wants to purchase a reactor that has such chronic problems with maintenance and safety systems. If all goes as Entergy plans, the company could have a subsidized nuclear monopoly in New York State by year’s end. Entergy has also expressed interest in Indian Point 2 (owned by Consolidated Edison) and Nine Mile Point 1 (owned by Niagara Mohawk) and Nine Mile Point 2 (owned by Niagara Mohawk, New York State Electric & Gas, Rochester Gas & Electric, Long Island Power Authority, and Central Hudson Gas & Electric).

The sales of New York's nuclear plants have long-term consequences for public health and safety, the economic well-being of several local communities, and the quality of sensitive environmental resources. Specifically, the sale of these reactors raises concerns regarding stranded cost recovery from ratepayers, commitment to proper decommissioning of the reactor site after shutdown, the fate of leftover funds in the ratepayer financed decommissioning account, and cost-cutting in staffing and maintenance. “These companies are taking advantage of a public policy vacuum in New York,” said Kyle Rabin, air & energy program associate for Environmental Advocates. "We are convinced that these issues require immediate policy guidance at the highest levels of state government and should not be dealt with in a piecemeal fashion by the various state bureaucracies responsible for energy, land use, economic development and environmental quality."

Last week, representatives from over 40 environmental, energy, and public health groups at the local, state, and national level delivered letters to Governor George Pataki and all State legislators calling on them to take steps to assure that the New York State Public Service Commission completes a full public review of issues associated with the operation of nuclear power plants in competitive markets prior to any consideration of their sale. In particular, the groups have called for the delay of the proposed sale of the Nine Mile 1 and 2 nuclear reactors located in Oswego, NY to AmerGen Energy Company LLC (AmerGen), a joint venture between PECO and British Energy.

The groups also expressed their concern that cost cutting under competitive market conditions could jeopardize the safe operation of New York's nuclear power plants. Both AmerGen and Entergy's business plans include cutting the work force at their new facilities by nearly one-third -- a strategy which has already compromised safety margins in the United Kingdom and Entergy's other power plants (both nuclear and fossil-fueled electric generation). Rabin said, "We are deeply troubled by AmerGen and Entergy's plans for acquiring pods of reactors while cutting back on engineering and support services." Rabin noted that British Energy (BE), AmerGen's parent company, has been sharply criticized by the United Kingdom's nuclear power regulator for job reductions at nuclear facilities they own in England and Scotland.

"We’re already seeing the effects of cost-cutting on New York’s nukes," said Tim Judson of CNY-CAN. NYPA has repeatedly violated NRC regulations in the last year, involving inadequate maintenance and testing and failure to follow necessary procedures to ensure safe reactor operation. NiMo has been cited with similar problems in the last year, following a four-year program of staff cut-backs resulting in 40% reduction in its workforce. The new owners' staff cuts would be on top of those initiated by the current owners. "NiMo, NYPA, and Con Ed are running these plants like second-rate used cars. And if someone’s got a lemon they’re trying to sell you, they’re not going to bother fixing it up first. The problem is, we’ve got a whole fleet of these lemons running in New York State and it’s the public, as innocent bystanders, who are most at risk."

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