BVY 11-036, Notice of Cancellation of Parent Guarantee

Notice of Cancellation of Parent Guarantee

ML111250255
Person / Time
Site:	Vermont Yankee File:NorthStar Vermont Yankee icon.png
Issue date:	04/29/2011
From:	Mcneal S Entergy Corp, Entergy Nuclear Operations
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
BVY 11-036
Download: ML111250255 (3)

Text

Entergy Corporation 639 Loyola Avenue 70113

ýEntergy PO Box 61000 New Orleans, LA Tel 504 576 4363 Fax 504 576 4455 70161 Steven C. McNeal Vice President and Treasurer April 29, 2011 BVY 11-036 VIA CERTIFIED MAIL, RETURN RECEIPT REQUESTED ATTN: Document Control Desk U. S. Nuclear Regulatory Commission Washington, DC 20555-0001 Entergy Nuclear Vermont Yankee, LLC c/o Entergy Nuclear Operations, Inc.

Michael J. Colomb, V.P.

P.O. Box 0250 320 Governor Hunt Road Vernon, VT 05354

SUBJECT:

Notice of Cancellation of Parent Guarantee Vermont Yankee Nuclear Power Station Docket No 50-271 License No DPR-28

REFERENCES:

1. Letter, Entergy to NRC, "Decommissioning Funding Assurance Documentation, Vermont Yankee Nuclear Power Station," dated January 28, 2010 (Accession No. ML100470701)

2. Letter, NRC to Entergy, "Issuance of Renewed Facility Operating License No. DPR-28 for the Vermont Yankee Nuclear Power Station," dated March 21, 2011 (Accession No. ML092110050)

3. Letter, Entergy to NRC, "Status of Decommissioning Funding for Plants Operated by Entergy Nuclear Operations, Inc. for Year Ending December 31, 2010," ENOC-1 1-0005, dated March 31, 2011 (Accession No. ML110940051)

Dear Sir or Madam:

In Reference 1, Entergy Nuclear Operations, Inc. submitted to the U.S. Nuclear Regulatory Commission (NRC) a. parent company guarantee issued by Entergy Corporation guaranteeing

$40 million of the decommissioning financial assurance requirements for the Vermont Yankee Nuclear Power Station (Vermont Yankee). In Reference 2, the NRC notified the licensees of Vermont Yankee that the facility operating license has been renewed for a twenty-year term, now set to expire at midnight on March 21, 2032. In Reference 3, Entergy Nuclear Operations, Inc. submitted its decommissioning funding report addressing Vermont Yankee decommissioning financial assurance for the year ending December 31, 2010. In that report, 4o/k SA-oD)

BVY 11-036 Entergy Nuclear Operations, Inc. demonstrated that with the renewed license term, the available decommissioning funds (without consideration of the parent guarantee of Reference 1) now provide an approximately $211 million surplus over the NRC's minimum funding amount, rendering the existing parent company guarantee for additional financial assurance no longer necessary. Entergy Nuclear Operations, Inc. indicated in Reference 3 that it intended to take the necessary steps to cancel the parent company guarantee.

Paragraph 13 of the aforementioned parent company guarantee (Reference 1) provides as follows:

The guarantor agrees to remain bound under this guarantee for as long as licensee must comply with the applicable financial assurance requirements of 10 CFR Part 50, for the previously listed facility, except as provided in Paragraph 14 below [pertaining to transfer of control of Entergy Nuclear Vermont Yankee, LLC, not applicable here] and except that the guarantor may cancel this agreement by sending notice by certified mail to the NRC and to the licensee, such cancellation to become effective no earlier than 120 days after receipt of such notice by both the NRC and licensee as evidenced by the return receipts. If the licensee fails to provide alternative financial assurance as specified in 10 CFR Part 50, as applicable, and obtain written approval of such assurance within 120 days after the sending of the above notice by the guarantor, the guarantor shall provide such alternative financial assurance.

This letter provides notice, pursuant to Paragraph 13 of the aforementioned parent company guarantee (Reference 1) that Entergy Corporation is cancelling its parent company guarantee previously submitted to the NRC in Reference 1. This cancellation will become effective 120 days after receipt of this notice by the NRC and Entergy Nuclear Vermont Yankee, LLC, as evidenced by the return receipts. As discussed above and in Reference 3, the parent guarantee is being cancelled because the current financial assurance for the decommissioning of Vermont Yankee is sufficient without further reliance on a parent company guarantee.

This letter contains no new commitments. If you have any questions or require any further information, please contact Mr. Bryan Ford at 601-368-5516 prior to the expiration of the 120-day notification period.

Sincerely, SCM/LJS cc: See next page.

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BVY 11-036 cc: Mr. William Dean, Region I 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, VT 05354 Ms. Elizabeth Miller, Commissioner Vermont Department of Public Service 112 State Street - Drawer 20 Montpelier, VT 05620 Mr. L. Jager Smith, P.E.

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