STAR Foundation, Stand for Truth About Radiation

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Elliot Spitzer

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Dear (recipient will be dropped in automatically),

Dear Mr. Spitzer:

At the June 28, 2025 Long Island Power Authority (LIPA) meeting of the Trustees, a resolution was passed that authorized the Chairman to enter into an operating agreement with Constellation Nuclear for the operation of the Nine Mile Point II (NMP2) nuclear power reactor. This resolution is a violation of the LIPA statute as LIPA has failed and continues to fail, ï¿½to make every effort to conveyï¿½ its interest in this reactor. We believe that LIPA has a legal duty to convey the 18% share in the NMP2 and we urge you to uphold the law.

ï¿½Nine Mile Point II; disposition of interest, ï¿½ maintains that ï¿½the authority shall make every effort to convey its interest in the Nine Mile Point II nuclear generating facility through the sale of its interest in such facility to the power authority of the state of New York or to one or more of the co-tenants of such plant, provided, however, that in any acquisition of such interest by the power authority of the state of New York or by one or more of the co-tenants, the authority shall agree to remain responsible for the purchase of such share of the power generated by such facility as it is required to purchase under agreements entered into by LILCO and obligating the authority.ï¿½

Constellation Nuclear is in the process of purchasing the reactor and LIPA could comply with its mandate. LIPA has maintained that the provisions of section 1020-ee do not pertain to this transaction. It could be argued that the statute requires conveyance to the power authority of the state or to one or more co-tenants, and that at this time Constellation is technically neither. However, under that same argument, upon completing the purchase, Constellation will immediately become a co-tenant and LIPA would then be obligated to ï¿½make every effort to conveyï¿½ its interest to that co-tenant. Given the current situation, we believe that it would be in LIPAï¿½s best interest to convey its share in the reactor at this time. However, the law is clear on this matter and until this time, LIPA appears to be ignoring this mandate.

2) TECHNICAL PROBLEMS: NMP2 is a boiling water reactor (BWR) that is an old design. BWRï¿½s are prone to shroud cracks. As nuclear reactors approach middle age, a variety of degradation mechanisms pose significant economic and safety risks. In fact, the NRC has determined that most BWRï¿½s experience shroud cracking after only 20 years of operation. Unit 1, which went into service in 1969 has suffered from a shroud crack. Unit #2 went into service in 1988 and may experience similar problems and suffer the age related component failures that are inevitable in a BWR.

In a March 15, 1995, Report to Congress on abnormal occurrences for October-December 1994, the NRC called BWR core shroud cracks ï¿½the most significant concern related to potential failure of reactor internals.ï¿½ In fact, according to the Union of Concerned Scientists, core shroud cracks are but ï¿½one internal component among many that will fail with the passage of time.ï¿½ Therefore, it seems likely that this reactor will experience trouble in the future that could be very costly. Ivan Selin, then-departing chairman of the NRC, warned in a 1995 address that reactor aging will require a major, continuous effort by industry officials to anticipate emerging aging-related problems and to resolve them before they become a crisis. Quite simply, this is not an effort that the taxpayers of Long Island should be engaged in, the risks and liabilities are simply too great and the uncertainties too numerous.

3) SPENT FUEL: It is estimated that NMP2 has adequate fuel storage until 2012. However, given the uncertainty in long-term nuclear fuel storage issues, long-term reliability and fuel storage issues pose problems that could be costly and time intensive in the future.

4) DECOMMISSIONING: It has been estimated that LIPAï¿½s share of decommissioning costs, based upon a ï¿½site-specificï¿½ 1995 study is $352 million in 2026 dollars. However, the financial burdens that could accrue to LIPA ratepayers from the eventual decommissioning are greatly unknown and could potentially be burdensome. The lack of federal standards for ï¿½prudency and recoverabilityï¿½ of D&D; funds held in escrow is particularly troubling, now that the state is ending its regulatory role over this reactor.

5) LIABILITY: Constellation Nuclear is a limited liability company with questionable liquid assets to deal with potentially very costly problems that this reactor may incur. In the event of an accident or any unforeseen problems at the reactor, the limited liability structure of Constellation, does not necessarily hold it or its parent corporation, financially responsible for liabilities. If Constellation walks away from this reactor because of financial liabilities, LIPA, with its 18 percent ownership may assume full liability by default. The lack of rigorous of financial due diligence by LIPA and the Public Service Commission over the sale of this reactor raises major concerns.

6) CONFLICT OF INTEREST: Navigant consulting, formerly known as RMI, is LIPAï¿½s chief technical and engineering consultant. However, Navigant also acted as co-manager of the auction of the NMP units and is the financial advisor in this transaction to two of the other co-tenants.

7) PAST PERFORMANCE: Constellation owns just two other reactors, the Calvert Cliffs reactors, which are pressurized water reactors, which is a different technology than NMP with different safety and operational concerns. In fact, Calvert Cliffs was on the NRCï¿½s ï¿½problem plantsï¿½ list-the list of worst reactors in the nation-from 1988 to 1992. Furthermore, in 1996, 1997 and 1998, Calvert Cliffs was cited with NRC Notices of Violation related to breakdown in radiation protection, deficient fire protection and failure to implement radiological controls. The fact that the new owner has no experience with the BWR design found at NMP and has a questionable track record in past reactor operations, should raise concerns for LIPA. As a minority co-tenant, LIPA may not have control over whether the NMP reactor will be operated safely and in a financially sound manner in the future. These issues deserve serious consideration because the long-term ramifications to LIPA ratepayers could potentially be highly detrimental.

8) HEALTH & SAFETY CONSEQUENCES OF NUCLEAR POWER: Nuclear reactors are large, complex and dangerous machines and no other form of electric production carries the risk of releasing massive amounts of lethal radiation, which can kill and poison millions of people and render large areas uninhabitable. The only report to Congress on the issue, determined that an accident at one of the nationï¿½s nuclear reactors would cause between 10,000-80,000 immediate deaths and 10,000-40,000 eventual deaths from cancer. Specifically, at Nine Mile Point the estimate was that an accident would 28,800 early injuries and 20,600 peak cancer deaths.

The argument that Long Island needs the power from NMP2 should be weighed against the risks of retaining ownership of the nationï¿½s most expensive nuclear power plant. The other co-tenants of NMP2 have negotiated long-term power contracts for the equivalent of power it is now receiving from the reactor and LIPA could do the same.

According to the LIPA 2001 budget, LIPA will spend the $ 8.6 million on nuclear fuel and $27 million on O&M; and $34 million in yearly debt service. More appropriately, LIPA could devote this additional funding to the Clean Energy Initiative and more aggressively fund the design and installation of renewable energy projects in the service area.

Over the last year, STAR has been working with LIPA to initiate a feasibility study on the potential for offshore wind generation around Long Island. We believe this to be a good idea and offshore wind technology has been operating successfully since 1991 in the Baltic Sea. Most importantly, offshore wind machines are capable of producing significant amounts of power with the added benefit that wind power provides no emissions and is an energy source that is free for all time. Unlike oil or gas, wind does not consume resources and will not fluctuate radically in price every time that supplies are altered. Furthermore, wind power does not create the same long-term societal costs as conventional power plants such as increased asthma rates, cancer and environmental damage. However, despite the enthusiasm and commitment of the staff, the Offshore feasibility study has taken a relatively long time to get off the ground. Now, we have learned that Keyspan will actually contract with the consultant to conduct the study. Therefore, in our opinion LIPA needs not only a greater financial commitment to renewable energy, but a greater allocation of staff devoted to the pursuit as well.

Most importantly, Long Islanders fought hard so they did not have to live in the shadow of a nuclear reactor and it is hypocritical for us to enable another reactor to operate in someone elseï¿½s back yard. I strongly urge you to convey the LIPA interest in NMP2.

Sincerely,

Sincerely,

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