Greater Commitment Needed To Solve Continuing Problems at Three Mile Island

Gao ID: EMD-81-106 August 26, 1981

The nuclear accident at Three Mile Island (TMI) placed a major electric utility system, the General Public Utilities Corporation (GPU), on the brink of insolvency while faced with a multiyear, $600-million unfunded cleanup operation that must be completed under uncertain regulatory constraints. GAO reviewed the current and prospective status of GPU.

GAO concluded that: (1) replacement power for TMI units is available, but future system reliability is questionable unless funds are made available to increase construction and maintenance above present restricted levels; (2) the financial condition of GPU continues to deteriorate and, unless sufficient rate relief is granted to restore its financial credibility, its future as a provider of electric power is in doubt; (3) cleanup of TMI-2 is technologically feasible, but the uncertainties surrounding the source of the estimated $600 million needed for the task and the regulatory environment in which it must be done have yet to be resolved; (4) the expeditious cleanup of TMI-2 and the benefits that can be derived are significant enough to warrant the financial participation of several parties rather than putting the entire burden on any one entity; (5) state officials in Pennsylvania and New Jersey have not taken the leadership role in assembling the financial assistance needed for the cleanup; (6) on-site property insurance coverage needs to be increased to levels that the Nuclear Regulatory Commission (NRC) determines to be adequate if other utilities are to avoid the financial and operational stress suffered by GPU in the event of another major accident; and (7) better defined regulatory guidelines for nuclear accident recovery efforts are needed to minimize the delays and added costs that have occurred at TMI-2.

Recommendations

Our recommendations from this work are listed below with a Contact for more information. Status will change from "In process" to "Open," "Closed - implemented," or "Closed - not implemented" based on our follow up work.

Director: Keith O. Fultz Team: General Accounting Office: Energy and Minerals Division Phone: (202) 512-3678


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