--In hearing, NRC members offer differing views on safety mandate

--Commissioners are debating requirements affecting 31 reactors

--Final vote not expected for weeks

 
   By Ryan Tracy 
 

WASHINGTON--The U.S. Nuclear Regulatory Commission appeared divided Wednesday over whether to mandate safety improvements at U.S. nuclear power plants that could cost hundreds of millions of dollars.

At least one commission member seemed to favor the mandate at a public hearing Wednesday, while two others expressed reservations. It wasn't clear how the five-member body would vote on the proposal, and a final decision might not come for weeks.

At issue is whether the commission should require safety upgrades at 31 U.S. nuclear plants with similar designs to Japan's Fukushima Daiichi facility, which experienced a triple meltdown after an earthquake and tsunami in March 2011.

The U.S. nuclear agency's staff has recommended that the U.S. operators be required to upgrade emergency venting systems by installing filters that would capture radioactive particles.

The filter requirement would be the most expensive imposed by U.S. nuclear regulators since Fukushima, at a cost of $16 million or more per reactor, according to the NRC staff's estimate. Industry officials say the cost of adding the filters could be more, depending on the layout of each plant.

"It is not an insubstantial investment that we are making," said Maria Korsnick, chief nuclear officer with Exelon Corp. (EXC) unit Constellation Energy, during Wednesday's hearing.

With U.S. nuclear operators already contending with competition from power plants running on low-priced natural gas, the added expense could be "another chip away at the viability of the nuclear industry overall," said Julien Dumoulin-Smith, a utility industry analyst with UBS.

The key question for the NRC commissioners is whether to make the filter requirement mandatory.

In an emergency, pressure could build up inside a nuclear plant's radiation containment building, potentially forcing the operator to open vents and allow gases--and some radiation--to escape. Without venting, the building could explode and release even more radiation. There were explosions at four Fukushima reactor buildings.

The new filters could help reduce the amount of radiation released into the atmosphere if the vents opened.

The nuclear industry says it also may be able to achieve the same goal through other methods. It isn't ruling out upgrades, but wants the NRC to set criteria for venting systems without explicitly requiring costly filters.

Without that flexibility, "you never have that conversation" about what is best for each plant, said NRC Commissioner William Magwood. "Every plant is different."

Commissioner Kristine Svinicki said one-size-fits-all regulations "are always going to be easier to do," but it is the agency's job to evaluate individual plans for complying with its rules. "That is our bread and butter."

Commissioner George Apostolakis, on the other hand, seemed to share the NRC staff's concern that evaluating separate compliance plans from each plant could delay safety improvements. "There are real ways that this thing can go on for 10 to 15 years," he said.

NRC Chairman Allison Macfarlane has said she is concerned about delays under the industry-favored option, though her questioning remained mostly neutral on Wednesday.

Commissioner William Ostendorff, who has backed the nuclear industry's suggestions on previous issues related to Fukushima, offered few hints Wednesday on how he might vote.

The commissioners will spend the coming weeks working through a complicated voting process, in which members draft statements describing their position and the group works to reach a consensus.

 
 
 

Write to Ryan Tracy at ryan.tracy@dowjones.com

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