Regional Power Authority urged for TMI operations

If the Three Mile Island (TMI) unit 1 returns to service, state ownership with a Regional Power Authority to oversee its operation and complete the cleanup of unit 2 would benefit ratepayers and avoid lengthy lawsuits, according to an Arthur Young and Company report to the New Jersey Board of Utilities. The report rejects continued ownership by General Public Utilities (GPU), merger, divestiture, and other options. It also outlines several conditions necessary for a Regional Power Authority: adequate rate relief, restart of TMI-1, congressional tax exemption, and approval by the GPU board and stockholders. The report recommends that Jersey Central divest itself of GPU to avoid financial disaster if GPU should declare bankruptcy, but it advises maintaining the flexibility to exercise long-term options