The Cleanup Effort at the TMI Nuclear Generating Station

GAO offered its views on S. 1606 and discussed the status of the cleanup effort at the Three Mile Island (TMI) nuclear powerplant and the financial condition of the General Public Utilities (GPU) System. S. 1606 provides a mechanism by which the electric utility industry can implement its commitment to share in the TMI cleanup costs. The bill limits the sharing of the industry contribution to those utilities with nuclear powerplant operating licenses. This is a change from previous considerations that would have assessed most electric utilities a share of the cost, and GAO believes that it is a matter best left to the discretion of Congress. GAO found that some progress has been made in cleaning up TMI, but funding constraints have slowed the pace for 1982, and the final completion date for TMI cleanup is likely to slip beyond 1987. In reviewing the financial condition of the GPU System, GAO found that its net income at the end of 1981 was approximately the same as 1980; however, accounting adjustments for extraordinary gains and losses resulted in a net loss of nearly $16 million and placed the GPU companies in an unfavorable solvency position. GAO believes that a GPU bankruptcy is unlikely, though, since too many uncertainties exist in a utility bankruptcy to make it a viable option to resolve the System's financial difficulties.