Appeal of Campaign for Ratepayers Rights

577 A.2d 1230, 133 N.H. 480, 1990 N.H. LEXIS 90
CourtSupreme Court of New Hampshire
DecidedAugust 1, 1990
DocketNo. 89-336
StatusPublished
Cited by5 cases

This text of 577 A.2d 1230 (Appeal of Campaign for Ratepayers Rights) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Appeal of Campaign for Ratepayers Rights, 577 A.2d 1230, 133 N.H. 480, 1990 N.H. LEXIS 90 (N.H. 1990).

Opinion

Batchelder, J.

Campaign for Ratepayers Rights (CRR) appeals from an order of the Nuclear Decommissioning Finance Com[481]*481mittee (committee) establishing a schedule of payments which will eventually fund the decommissioning of the Seabrook nuclear power plant. In particular, the CRR claims that certain findings made by the committee were unsupported by the evidence and that CRR’s due process rights guaranteed by the State and Federal Constitutions were violated because an employee of Public Service Company of New Hampshire (PSNH) was acting as a committee member. For the following reasons, we affirm.

On May 4, 1981, the legislature passed House Bill 1, creating the Nuclear Decommissioning Finance Committee. The committee was established for the purpose of ensuring the safety and well-being of the public and future generations by protecting them not only from the substantial and predictable costs associated with the decommissioning of nuclear power plants, but also from any subsequent health hazards presented by the sites themselves. RSA 162-F:1 (Supp. 1989). The committee is charged with carrying out its purpose through a series of public hearings directed at establishing and maintaining funds that would finance the decommissioning of nuclear facilities. RSA 162-F:19, :21 (Supp. 1989). The contributions to such funds are to be made by the owners of the facilities and are ultimately paid by those who purchase power generated by the facility. The committee may, should it later conclude that the contributions will either exceed or fall short of the projected decommissioning costs, hold another public hearing to determine what adjustments in the amount of contributions are necessary. RSA 162-F:22 (Supp. 1989).

During the first and third weeks of March 1988, a series of public hearings were held to determine the cost of decommissioning the Seabrook nuclear power plant. Inherent in this process is the task of allocating the costs among the various owners in proportion to their respective interests, and establishing a payment schedule calculated to generate the funds necessary to cover the projected decommissioning costs. At the March 1988 public hearings, PSNH presented the testimony of its expert, Thomas A. LaGuardia, a mechanical engineer with almost twenty years experience decommissioning nuclear power plants and co-author of the United States Department of Energy’s Decommissioning Handbook. During the course of the hearing, Mr. LaGuardia testified that in his opinion the best method of decommissioning Seabrook would be by prompt removal and dismantlement (DECON), at the cost of $242,429,000 in 1987 dollars. As Mr. LaGuardia testified, the DECON method of decommissioning [482]*482requires that, once the facility ceases to generate electricity, it would be immediately dismantled, the debris being trucked to a landfill for burial. Mr. LaGuardia’s estimate as to the cost of decommissioning was premised on the assumption that a landfill where the high and low-level nuclear wastes involved in the dismantlement could be disposed of would be located within 250 miles of Seabrook, although no such site exists now. Mr. LaGuardia testified that the amount of $242,429,000 included a 25% contingency factor.

With regard to how the costs should be allocated among the various owners, PSNH offered the testimony of William P. Hannon. Utilizing Mr. LaGuardia’s cost estimates, Mr. Hannon prepared two specific payment schedules, one for taxable owners and one for tax-exempt owners, setting forth the monthly contributions necessary to accumulate the projected funds needed for decommissioning. Since the tax-exempt owners can expect a greater rate of return on their contributions than can the taxable owners, two payment schedules are needed to ensure an equitable division of the decommissioning costs. Witness Hannon testified that the monthly payments made by the taxable and tax-exempt owners should total $346,351, which over the forty-year term of the plant’s operating license would accumulate to $1.2 billion dollars. Mr. Hannon testified that the payments should be adjusted annually employing a long-run cost escalation rate of 4%.

In response to the testimony of Mr. LaGuardia and Mr. Hannon, the CRR offered the testimony of Larry S. Eckhaus, a financial analyst currently employed by the public utilities commission, office of the consumer advocate. Based upon the evidence presented by PSNH’s experts, Mr. Eckhaus testified that, in the absence of a currently available landfill within 250 miles of Seabrook that could receive wastes generated during dismantlement, the estimates for decommissioning costs should be calculated based upon the method of decommissioning referred to as SAFSTOR. Using the SAFSTOR method the plant would be “mothballed” for thirty years prior to dismantlement while the levels of radioactivity decay. Mr. Eckhaus testified that the cost of decommissioning using the SAFSTOR method would be $553,000,000 in 1987 dollars.

Mr. Eckhaus also disagreed with the assumption that Seabrook would necessarily generate electricity for the full forty-year term of its operating license and testified that thirty-five years was a more realistic projection. At oral argument before this court, counsel for CRR pointed out that the average life span of those nuclear power [483]*483plants that have already been decommissioned is approximately seventeen years. However, the record does not contain any scientific evidence showing similarities in plant design or other characteristics that would support the CRR’s contention that Seabrook’s life span would be of equal duration. Last, Mr. Eckhaus disagreed with the use of a 4% annual long-run cost escalation rate, claiming that a rate of 5.2% was more realistic in light of the United States Nuclear Regulatory Commission’s (NRC) recommendation that the rate be twice that of the consumer price index. Accordingly, Mr. Eckhaus testified that monthly contributions should be 1.3 million dollars based upon the SAFSTOR method of decommissioning, which over thirty-five years would accumulate to 1.8 billion dollars.

At the conclusion of the hearing, the committee issued an order finding that (1) the amount of $242,429,000 in 1987 dollars is a reasonable and proper estimate as to the cost of decommissioning the Seabrook plant, (2) the 4% annual long-run cost escalation rate is an appropriate rate to adjust for inflation, and (3) the payment schedule submitted by Mr. Hannon detailed a reasonable allocation of decommissioning costs between the taxable and tax-exempt owners of the facility. On appeal, CRR claims that the committee’s findings were not supported by the evidence and that they are unjust and unreasonable.

Appeals seeking to set aside the findings or rulings of the committee are governed by RSA 541:13, which provides that the party challenging the order or decision must show, by the preponderance of the evidence, that the order or decision is unlawful, unreasonable or unjust. RSA 541:13; Appeal of Seacoast Anti-Pollution League, 125 N.H. 465, 473, 482 A.2d 509, 516 (1984). However, prior to such a showing, the findings of the committee are presumed to be prima facie lawful and reasonable. Id. In overcoming this presumption, the appealing party may demonstrate that the record does not contain sufficient evidence to support the committee’s decision. Appeal of Granite State Elec. Co., 121 N.H. 787, 791, 435 A.2d 119, 121 (1981).

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Cite This Page — Counsel Stack

Bluebook (online)
577 A.2d 1230, 133 N.H. 480, 1990 N.H. LEXIS 90, Counsel Stack Legal Research, https://law.counselstack.com/opinion/appeal-of-campaign-for-ratepayers-rights-nh-1990.