Group fears TVA will abandon its conservation role

Tuesday, May 10, 1988 The Knoxville News-Sentinel A3

Group fears TVA will abandon its conservation role

By REBECCA FERRAR
News-Sentinel staff writer

A local ratepayers' group is worried that TVA's energy conservation programs will wind up on the chopping block as part of the agency's $300 million in budget cuts this year.

The Tennessee Valley Energy Coalition says TVA Chairman Marvin Runyon is starting to backtrack on statements he made several months ago supporting the conservation programs.

TVEC President Greg Mackay said Runyon appears to see TVA as a "giant utility" that should not be in the energy conservation business. "I think it's a mistake," Mackay said.

"Energy conservation is what TVA is all about. TVA is not just a giant utility. It's a development company. What better way to develop the valley than to use energy conservation to make people less dependent on the government?" Runyon, however, says no decision has been made about what programs will be cut.

"We're looking at everything we're doing on the power side from the standpoint of how we can get the $300 million," Runyon said Monday. "We have not made specific decisions on that. TVA is in the business of generating power. TVA is the best possible rates we can have. We have to study to see how that will benefit the ratepayers."

Runyon was sworn in as chairman in late January. In February, he met with the TVA Board Appointment Coalition, which includes TVEC. Runyon told the group that he was "in favor of promoting energy conservation and renewable energy alternatives for TVA consumers whenever it is cost effective."

Now, TVEC points to a statement the chairman made at the April board meeting in Huntsville, Ala., when he called TVA a "very large utility" that is in the business of selling power.

Runyon further commented at the meeting about TVA's conservation programs: "I don't know that those kinds of programs are really what TVA should be doing right now."

Mackay says Runyon is off base about conservation.

"I think he's misguided," Mackay said. "I think, sadly enough, it's because he misunderstands the role of TVA. If he thinks TVA is just a large utility company, he's way off base."

Since the Huntsville board meeting, Runyon has announced an austerity program to prevent electric rate increases for three years. To accomplish that, TVA must cut its budget by $300 million by Oct. 1. Doing so will include layoffs and eliminating programs.

Bob Steffy, TVA power manager, acknowledges TVA is considering cutting the energy conservation programs in addition to other programs funded through the power budget, saying there is no "sacred cow."

Eliminating the $17 million conservation programs, a large portion of which is used for weatherization, will hurt ratepayers, especially the poor and elderly, Mackay said.

TVA's weatherization program includes helping provide no-interest or low-interest loans for insulation, installing heat pumps, weatherstripping and other energy-saving measures. TVA has spent $550 million on loans for home weatherization improvements.

NRC regulators eye action against TVA

By REBECCA FERRAR
News-Sentinel staff writer

Key regulators of the Nuclear Regulatory Commission will meet in Washington, D.C., today to discuss what action should be taken against TVA for alleged harassment of nuclear inspectors, the failure to meet engineering codes at Watts Bar Nuclear Plant and for violating fire safety standards at Sequoyah Nuclear Plant.

Action resulting from the enforcement conference to be attended by top TVA and NRC officials could range from citations to fines or other penalties. However, there will be no record of the conference. The NRC has decided no transcript will be made of the meeting, officials said.

The three issues to be considered: Alleged harassment and intimidation of authorized nuclear inspectors by their managers at the Hartford Steam Boiler and Insurance Co. to accept faulty work at Watts Bar Nuclear Plant near Spring City. The inspectors provide an independent assessment of whether nuclear plants are built according to national standards, and, therefore, qualify for insurance. The NRC's Office of Investigation has looked into this issue.

Hartford's statement as outlined in an April 18 TVA memo stated that the Unit 1 reactor at Watts Bar does not meet engineering codes. In the memo by J.A. Domer to M.J. Ray, both of TVA's Nuclear Safety and Licensing staff, Domer states that Hartford Steam Boiler does not believe TVA meets the American Society of Mechanical Engineers code requirements at Watts Bar's Unit 1.

Violation by TVA of the NRC standards known as "Appendix R" governing fire safety at nuclear reactors. The conference will consider violations at both reactor units at Sequoyah Nuclear Plant near Chattanooga. Shortly before TVA received the NRC's blessing to restart Sequoyah Unit 2 in March, the NRC required TVA to install fire safety equipment at the plant.

Sequoyah's reactors have been shut down for safety problems since August 1985. TVA may restart Unit 2 this week.

According to NRC officials, Watts Bar Unit 1 does not meet ASME codes on certain welds that have never been inspected. Those welds must be inspected before the plant could go on line, the NRC says.

Watts Bar still is under construction and thus is not licensed. TVA nuclear chief Steve White recently scaled down the operations that were readying the plant for licensing. Numerous construction problems have been found at Watts Bar during the last few years, including the welds throughout the plant.

TVA resumes non-nuclear heatup of Sequoyah reactor

CHATTANOOGA (AP) - Non-nuclear heatup of the Sequoyah's Unit 2 reactor resumed yesterday, less than a month after a water leak within the steam generator led to a cold shutdown.

TVA employees began the non-nuclear heatup at the nuclear plant near Chattanooga about 2 p.m. CDT, said Steven A. White, TVA's nuclear chief.

"As I have said before, I am taking the conservative approach to restarting Sequoyah," White said. "If a problem is discovered, as we have demonstrated before, we will thoroughly evaluate the situation and take a prudent course of action," he said.

Before the shutdown, Unit 2 had been in non-nuclear heat-up for about two months. Equipment inside the reactor had been at full operating temperature and pressure in preparation for restart.

Sequoyah's Unit 2 was returned to cold shutdown last month so a water leak within the steam generator system could be fixed.

White said a specific row of tubes plugged to prevent leaks from occurring after restart.

"When I am convinced that our plant's equipment and personnel are ready, I will ask the Nuclear Regulatory Commission to make the Unit 2 reactor critical," White said.

During the heatup, Sequoyah reactor operators will gradually increase the temperature and pressure of the Unit 2 reactor coolant system to normal operating levels.

TVA's nuclear system has been shut down since August 1985 while the federal utility tries to resolve safety and management concerns at its three nuclear plants.

On March 22, the Nuclear Regulatory Commission gave the TVA permission to make Sequoyah Unit 2 its first reactor to come back on line, once minor temperature problems within the pressurizer system were corrected.

However, workers found chemical samples indicated that radioactive water from the primary water system in one of Unit 2's four steam generators had leaked into the secondary water system.

After two experts from Westinghouse Corp., which manufactured the steam generators, confirmed the leak, White decided to return the unit to a cold shutdown, or about room temperature, while it was repaired.

TVA plans to heat up the reactor coolant system to 547 degrees Fahrenheit and bring pressure to 2,235 pounds per square inch to prepare for restart.