CNY Citizens Awareness Network

Environmental Advocates

 

For Immediate Release:

February 14, 2000

 

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

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

 

PRESS RELEASE

 

NYPA’S Reactor Sale Shadowed by Nuclear Safety Problems and Worker Harassment

 

The New York Power Authority (NYPA) announced today, February 14, that they have reached an agreement with Entergy Nuclear, Inc. on the sale of the Indian Point 3 and J.A. Fitzpatrick reactors.  A dark cloud hangs over NYPA’s Valentine’s Day announcement, however.

 

In a letter last week to the United States Nuclear Regulatory Commission (NRC), David Lochbaum of the Union of Concerned Scientists, urged the NRC to order the New York Power Authority (NYPA) to investigate the corrective action process and the work environment (in which a worker was harassed for raising safety issues) at the Indian Point 3 nuclear power plant and take immediate actions to remedy any deficiencies. The Indian Point 3 unit is one of two reactors that NYPA is in the process of selling to Entergy Nuclear, Inc.  Last week – for the second time – NYPA and Entergy postponed the announcement of their deal, which was originally scheduled to be unveiled on Tuesday, February 1.  The initial postponement was to February 8.   This second postponement – pushing the announcement off to the end of February – comes on the heals of a NRC investigation into a safety system malfunction that has involved the repeated failure (most recently on January 31, 2000) of a emergency cooling system at NYPA’s Fitzpatrick reactor near Oswego.  And now – adding insult to injury – new information regarding worker harassment at IP3.

 

Workers at nuclear plants are commonly referred to as the “eyes and ears” for the NRC.  The NRC openly admits that it can only oversee a small portion of the safety issues and relies heavily on nuclear plant employees to identify potential safety concerns to management and, if necessary, to the NRC.  “Protection of safety conscious workers is of paramount concern, especially in light of electric utility deregulation, the infusion of market competition into the energy market, and cutbacks that have been proposed for NRC’s resident safety inspector program,” said Kyle Rabin, air & energy program associate for Environmental Advocates.

 

With the proposed reduction in NRC resident safety inspectors stationed at individual nuclear power plants and the pressures on nuclear plant operators and owners – both new, i.e. AmerGen Energy Company, LLC and Entergy Nuclear, Inc. and old, i.e. the Niagara Mohawk Power Corporation and the New York Power Authority (NYPA) – to cut costs so to remain competitive with non-nuclear power generators, nuclear safety will surely be impacted.  AmerGen’s parent companies (Philadelphia Electric Co. and British Energy) along with Entergy Corporation – both seeking to buy reactors in New York – have already been criticized by regulatory agencies (the Texas Public Utility Commission, the NRC, and the British equivalent of the NRC) for cutbacks they have made to maintenance of transmission, distribution, safety systems and personnel.  Subsequently, safety and distribution reliability has been negatively effected.  “Employees working at nuclear power plants that are either owned or operated by these new companies striving to compete, should not feel pressured or intimidated by their supervisors in airing concerns that may be expensive to remedy,” said Tim Judson of Central New York Citizens Awareness Network (CNY-CAN).

 

“Sadly, we have witnessed the harassment of employees at New York nuclear power plants much to often,” said Judson.  A most recent example of such harassment involved an employee at NYPA’s Indian Point 3 reactor (IP3) who had concerns about the corrective action process at IP3 and its effectiveness in identifying problems and ensuring their timely resolution.  According to the Union of Concern Scientist letter, the employee, after raising safety concerns, was treated with such sustained abuse that she ultimately had to transfer out of the Operations Review Group.

 

The public might wonder why Entergy still wants to purchase a reactor that has such chronic problems with treatment of safety-conscious employees, maintenance and safety systems.  If all goes according to Entergy’s plan, it 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).

 

However, Entergy's apparent lack of concern for these issues at IP3 is not unique: Entergy has been cited in other states for cutting costs on maintenance and for devaluing its skilled work force.  In the past year, both Nine Mile Point and FitzPatrick reactors have been cited by the NRC for shoddy management, resulting in safety system failures (some during emergencies) and unplanned maintenance outages.  In Entergy's case, cost cutting practices have resulted in unscheduled outages, including a period of rolling blackouts affecting 565,000 customers in Texas, Louisiana, Arkansas, and Mississippi.  In 1997, the Texas Department of Public Utility Control fined Entergy $9 million for its maintenance practices.  Most recently, Entergy has admitted cutting costs on maintenance at its Arkansas Nuclear 1 reactor, resulting in the failure of a main coolant pump.

 

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 of EA. "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."

 

Other concerns relate to the impact that cost cutting under competitive market conditions will have on 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 at reactors operated by British Energy (one of AmerGen’s parent companies) and at Entergy’s nuclear and fossil-fueled electric generating facilities.  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 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, failure to follow necessary procedures to ensure safe reactor operation, and poor treatment of safety-conscious employees.

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COPIES OF THE UNION OF CONCERNED SCIENTISTS LETTER AVAILABLE UPON REQUEST