BVY 09-048, VY Spent Fuel Management Plan - RAI Response
| ML092370298 | |
| Person / Time | |
|---|---|
| Site: | Vermont Yankee  |
| Issue date: | 08/18/2009 |
| From: | Michael Colomb Entergy Nuclear Operations |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| BVY 09-048, TAC ME1152 | |
| Download: ML092370298 (8) | |
Text
Entergy Nuclear Operations, Inc.
Vermont Yankee P.O. Box 0250 Entergy 320 Governor Hunt Road Vernon, VT 05354 Tel 802 257 7711 Michael J. Colomb Site Vice President BVY 09-048 August 18, 2009 ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555
Reference:
Letter, NRC to VY, Request for Additional Information to Support the Review of the Vermont Yankee Nuclear Power Station Update to VY Spent Fuel Management Plan (TAC No. ME1 152), dated May 20, 2009
Subject:
VY Spent Fuel Management Plan - RAI Response Vermont Yankee Nuclear Power Station Docket No. 50-271 License No. DPR-28
Dear Sir or Madam,
In the referenced letter, NRC requested additional information pertaining to our previous submittals regarding how Entergy Nuclear Vermont Yankee (ENVY) intends to manage and provide funding for irradiated fuel until title to the irradiated fuel is transferred to the Department of Energy. The attachment to this letter provides ENVY's. response to the staff's questions.
This letter includes one new commitment, which is included in the enclosure.
Should you have any questions concerning this submittal, please contact Mr. David Mannai at (802) 451-3304.
Sincerely, AA 71 ttIc~-
[MJC/JTM]
Enclosures:
Response to RAI for VY Spent Fuel Management Plan (2 pages)
List of Regulatory Commitments (1 page)
VY Decommissioning Funding Plan - Scenario 5 (3 pages)
BVY 09-048 / Page 2 of 2 cc: Mr. Samuel J. Collins, Region 1 Administrator U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406-1415 Mr. James S. Kim, Project Manager U.S. Nuclear Regulatory Commission Mail Stop 0 8 C2A Washington, DC 20555 USNRC Resident Inspector Entergy Nuclear Vermont Yankee 320 Governor Hunt Road Vernon, Vermont 05354 Mr. David O'Brien, Commissioner VT Department of Public Service 112 State Street - Drawer 20 Montpelier, Vermont 05620
BVY 09-048 Response to Request for Additional Information VY Spent Fuel Management Plan RAI No. 1 The NRC regulations allow a licensee to take a 2% real rate of return credit on investments unless a higher rate is authorized by a regulated licensee's public utility commission. Vermont Yankee applied a 2% real rate of return on the trust fund balance plus the additional projected contributions/reimbursement from Department of Energy (DOE) and deducted the decommissioning and spent fuel management costs identified in the Attachment 1: Scenario 5. The contributions from DOE are based on an assumption that liability was established based on the fact that the U.S. Court of Federal Claims entered a judgment in favor of VY and against DOE. Since VY's analysis indicates sufficient funds are not available to address the decommissioning costs and spent fuel management costs without the DOE's reimbursement, what mechanism has VY established to address the funding shortfall since the liability judgment does not guarantee the payment of damages in any certain amount or any payment date, and it could be overturned?
Response
The extended spent fuel management costs in Entergy Nuclear Vermont Yankee's (ENVY) spent fuel management plan are caused by the Department of Energy's (DOE) failure to pick up the spent fuel in accordance with ENVY's contract with the DOE. Ifthe DOE were performing in accordance with its legal obligations, these spent fuel management costs would not be projected. ENVY believes it is a reasonable assumption to make, that DOE will have to comply with its contractual obligation, either through actual performance, or as assumed by ENVY in its April 1, 2009 submittal, through damage payments. This assumption is strengthened by the fact, as noted in this RAI, that the court has already found DOE liable for breach of contract.
Nevertheless, ENVY understands the NRC Staff's position, and to respond to the Staff's concerns, amends its spent fuel management plan as reflected in this response. To respond to the Staff's concerns, ENVY will return to the spent fuel management funding approach set out in its October 14, 2008 submittal (ML082910294), that was approved by the NRC in its Safety Evaluation dated February 3, 2009 (ML083390193). The current plan is amended as follows.
The DOE Reimbursement column in the funding plan has been removed, and replaced by a column entitled Contributions to Trust Fund. In the October 14, 2008 submittal, ENVY had committed to a $60 million contribution to the trust fund in 2026. For purposes of this amended plan, ENVY now commits to make a $127.017 million contribution to the trust fund in 2026, based upon a July 31, 2009 decommissioning trust fund balance of $402,169,338. This revision results in the trust fund having a near zero balance by the end of the decommissioning project after the 2% real rate of return is applied to the trust funds. See attached revised Scenario 5 Funding Plan.
ENVY has filed for license renewal for Vermont Yankee, and expects a decision on that application later in 2009. ENVY expects that the addition of a renewed license term for Vermont Yankee will materially change the required additional contribution amount for the spent fuel management plan, and accordingly expects to submit a revised plan if license renewal is granted, that should eliminate or substantially reduce any required future contributions to the trust fund.
Page 1
BVY 09-048 RAI No. 2 While Entergy's submittal (BVY 09-022) for Vermont Yankee dated April 1, 2009, included a cost estimate for a 2012 shutdown and an extended SAFSTOR period, the submittal did not include the plan, as required by 10 CFR 50.75(f)(5), to adjust funding levels to demonstrate a reasonable level of financial assurance, when the plan appears to be necessary. Due to the recent drop in the Trust Fund to $372.01 million as of December 31, 2008, documented in the March 30, 2009, submittal (ENOC-09-0007), the plan should reflect the mechanism for adjusting funding.
Response
Please see ENVY's response to RAI No. 1 above. The mechanism for adjusting funding will be a contribution to the trust fund of $127.017 million in 2026.
Page 2
Regulatory Commitments Table This table identifies actions discussed in this letter for which Entergy Nuclear Vermont Yankee commits to perform. Any other actions discussed in this submittal are described for the NRC's information and are not commitments.
Letter Number/Title: BVY 09-048, VY Spent Fuel Management Plan - RAI Response TYPE SCHEDULED (Check one) COMPLETION COMMITMENT DATE ONE-TIME CONTINUING (If Required)
ACTION COMPLIANCE Provide additional funding of $127.017 million X December31, dollars to trust fund for Spent Fuel Management 2026 i i i i i i
BVY 09-048 Vermont Yankee Nuclear Power Station Decommissioning Funding Plan Scenario 5: 2012 Shutdown, Extended SAFSTOR Alternative, 2020 DOE Start Date Basis Year 2008 Fund Balance $402.169 million (July 31, 2009, actual)
Fund Balance $405.521 million (December 31, 2009, projected)
Annual Escalation 0.00%
Annual Earnings 2.00% _ 1 A B C D E F Total License Termination 50.75 50.54(bb) and Decommissioning License Spent Fuel Spent Fuel Total Cost Trust Fund Termination Management Management Escalated at Contributions Escalated at 2%
Cost Cost Cost 0% to Trust Fund (minus expenses)
Year (millions) (millions) (millions) (millions) (millions) (millions) 2009 405.521 2010 413.631 2011 421.904 2012 32.682 13.607 46.289 46.289 384.053 2013 40.282 27.400 67.682 67.682 324.052 2014 3.935 29.322 33.257 33.257 297.276 2015 3.935 29.322 33.257 33.257 269.964 2016 3.946 29.402 33.348 33.348 242.016 2017 3.935 23.217 27.152 27.152 219.704 2018 3.933 2.553 6.486 6.486 217.612 2019 3.933 2.553 6.486 6.486 215.478 2020 3.943 6.310 10.253 10.253 209.535 2021 3.933 2.943 6.876 6.876 206.850 2022 3.933 2.553 6.486 6.486 204.501 2023 3.933 2.787 6.720 6.720 201.871 2024 3.943 2.872 6.815 6.815 199.093 2025 3.933 2.865 6.798 6.798 196.277 2026 3.933 2.787 6.720 6.720 127.017 320.499 2027 3.933 2.709 6.642 6.642 320.267 2028 3.943 2.716 6.659 6.659 320.013 2029 3.933 2.709 6.642 6.642 319.772 2030 3.933 2.709 6.642 6.642 319.525 2031 3.933 2.709 6.642 6.642 319.274 2032 3.943 2.638 6.581 6.581 319.078 2033 3.933 2.709 6.642 6.642 318.818 2034 3.933 2.709 6.642 6.642 318.552
+
3.933 4 2.553 4- 6.486 4- 6.486 4 4 2035 3.933 2.553 6.486 6.486 318.437
BVY 09-048 Vermont Yankee Nuclear Power Station Decommissioning Funding Plan Scenario 5: 2012 Shutdown, Extended SAFSTOR Alternative, 2020 DOE Start Date Basis Year 2008 Fund Balance $402.169 million (July 31, 2009, actual)
Fund Balance $405.521 million (December 31, 2009, prjrected)
Annual Escalation 0.00%
Annual Earnings 2.00%
A B C D I E F Total License I Termination 50.75 50.54(bb) and Decommissioning License Spent Fuel Spent Fuel Total Cost Trust Fund Termination Management Management Escalated at Contributions Escalated at 2%
Cost Cost Cost 0% to Trust Fund (minus expenses)
Year (millions) (millions) (millions) (millions) (millions) (millions) 2036 3.943 2.638 6.581 6.581 318.225 2037 3.933 2.631 6.564 6.564 318.025 2038 3.933 2.787 6.720 6.720 317.666 2039 3.933 2.631 6.564 6.564 317.455 2040 3.943 2.716 6.659 6.659 317.145 2041 3.933 2.709 6.642 6.642 316.846 2042 3.933 2.709 6.642 6.642 316.541 2043 3.933 ___ 2.709 6.642 6.642 316.230 2044 3.943 2.638 6.581 6.581 315.973 2045 3.933 2.936 6.869 6.869 315.424 2046 3.931 - 3.931 3.931 317.801 2047 3.931 - 3.931 3.931 320.226 2048 3.942 - 3.942 3.942 322.689 2049 3.931 - 3.931 3.931 325.212 2050 3.931 - 3.931 3.931 327.785 2051 3.931 - 3.931 3.931 330.410 2052 3.942 - 3.942 3.942 333.076 2053 3.931 - 3.931 3.931 335.806 2054 3.931 3.931 3.931 338.592 2055 3.931 - 3.931 3.931 341.432 2056 3.942 - 3.942 3.942 344.319 2057 3.931 - 3.931 3.931 347.274 2058 3.931 - 3.931 3.931 350.289 2059 3.931 - 3.931 3.931 353.364 2060 3.942 - 3.942 3.942 356.489 2061 3.931 - 3.931 3.931 359.688 2062 3.931 3.931 3.931 362.950
BVY 09-048 Vermont Yankee Nuclear Power Station Decommissioning Funding Plan Scenario 5: 2012 Shutdown, Extended SAFSTOR Alternative, 2020 DOE Start Date Basis Year 2008 _ [
Fund Balance $402. 169 million (July 31,2009, actual)
Fund Balance $405. 521 million (December 31, 2009, projected)
Annual Escalation 0.00%
Annual Earnings 2.00%
A B C D E F Total License Termination 50.75 50.54(bb) and Decommissioning License Spent Fuel Spent Fuel Total Cost Trust Fund Termination Management. Management Escalated at Contributions Escalated at 2%
Cost Cost Cost 0% to Trust Fund (minus expenses)
Year (millions) (millions) (millions) (millions) (millions) (millions) 2063 3.931 3.931 3.931 366.278 2064 3.942 + +-
3.942 +
3.942 369.662 2065 3.931 3.931 3.931 373.124 2066 27.779 + +
27.779 +
27.779 +
352.808 2067 +
81.017 + +
81.017 +
81.017 ~+
278.847 2068 108.329 0.512 108.841 108.841 175.583
+ + + .--- + ~...-.--+
2069 +
62.090 +
1.026 +
63.116
--- +
63.116
4 115.978 2070 62.090 1.026 63.116 63.116 55.182 2071 47.745 0.492 48.237 48.237 8.049 2072 7.634 0.272 7.906 7.906 0.304 2073 1 0.060 0.249 0.309 _ 0.309 0.001 674.328 235.335 909.663 909.663 127.017 Calculations:
Column C = A + B Column D = (C)*(1 +0%)A(current year - 2008) or for 0%, D = C Column E = Contributions to trust fund Column F = (Previous year's fund balance) * (1 + .02) - D (current year's decommissioning expenditures) + E (contributions)