CNRO-2014-00009, Response to Request for Additional Information for Review of the Decommissioning Funding Plans for Entergy Operations, Inc., Independent Spent Fuel Storage Installations

Response to Request for Additional Information for Review of the Decommissioning Funding Plans for Entergy Operations, Inc., Independent Spent Fuel Storage Installations

ML14205A483
Person / Time
Site:	Grand Gulf, Arkansas Nuclear, River Bend, Waterford   (DPR-051, NPF-006, NPF-029, NPF-038, NPF-047)
Issue date:	07/24/2014
From:	Mccann J Entergy Operations
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
CNRO-2014-00009
Download: ML14205A483 (8)

Text

CNRO-2014-00009 July 24, 2014 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001

SUBJECT:

Response to Request for Additional Information for Review of the Decommissioning Funding Plans for Entergy Operations, Inc. Independent Spent Fuel Storage Installations Arkansas Nuclear One, Units 1 and 2 Docket No. 72-13 License Nos. DPR-51 and NPF-6 River Bend Station Docket No. 72-49 License No. NPF-47 Grand Gulf Nuclear Station Docket No. 72-50 License Nos. NPF-29 Waterford 3 Steam Electric Station Docket No. 72-75 License No. NPF-38

REFERENCES:

1. Entergy Operations, Inc. letter to the NRC, ISFSI Decommissioning Funding Plans (10 CFR 72.30), dated December 17, 2012, (ADAMS Accession No. ML12354A131)

2. NRC letter to Entergy Operations, Inc., Request for Additional Information for Review of the Decommissioning Funding Plans for Entergy Operations, Inc. Independent Spent Fuel Storage Installations, dated April 30, 2014, (ADAMS Accession No. ML14120A273)

Dear Sir or Madam:

By letter dated December 17, 2012 (Reference 1), Entergy Operations, Inc. (EOI), acting as agent for the owner licensees listed in the letter, submitted Independent Spent Fuel Storage Installation (ISFSI) decommissioning funding plans pursuant to 10 CFR 72.30. By letter dated April 30, 2014 (Reference 2), the NRC issued a Request for Additional Information (RAI) related to the Reference 1 report for Arkansas Nuclear One Units 1 and 2, Grand Gulf Nuclear Station, River Bend Station, and Waterford 3 Steam Electric Station. The attachment to this letter provides EOIs responses on behalf of the subject licensees to the RAI.

This letter contains no new commitments.

Entergy Operations, Inc.

440 Hamilton Avenue White Plains, NY 10601 John F. McCann Vice President, Regulatory Assurance Tel. (914) 272-3370

CNRO-2014-00009 Page 2 of 2 If you have any questions, please contact Mr. Bryan Ford, Senior Manager, Fleet Regulatory Assurance, at 601-368-5516.

Sincerely, JFM / ljs / ghd

Attachment:

Response to Request for Additional Information cc:

Ms. Kristina L. Banovac, Project Manager Licensing Branch Division of Spent Fuel Storage and Transportation Office of Nuclear Material Safety and Safeguards U.S. Nuclear Regulatory Commission MS 3WFN/14 A44 Washington, DC 20555 Mr. J. G. Browning (ANO)

Mr. M. R. Chisum (W3)

Ms. W. C. Curry (ECH)

Mr. J. A. Kowalewski (ECH)

Mr. K. J. Mulligan (GGNS)

Mr. E. Olson (RBS)

NRC Regional Administrator, Region I NRC Regional Administrator, Region III NRC Project Manager, ANO NRC Project Manager, GGNS NRC Project Manager, RBS NRC Project Manager, W3 NRC Resident Inspector, ANO NRC Resident Inspector, GGNS NRC Resident Inspector, RBS NRC Resident Inspector, W3

bcc:

Mr. J. A. Aluise (ENT)

Mr. J. A. Clark (RBS)

Ms. W. C. Curry (ECH)

Mr. B. S. Ford (ECH)

Mr. D. Gibbs (ECH)

Mr. W. B. Glew (WPO)

Mr. B. E. Green (TMBR)

Ms. D. Jacobs (ECH)

Mr. J. P. Jarrell (W3)

Mr. D. J. Mannai (WPO)

M. J. J. Nadeau (GGNS)

Mr. T. A. Ngau (ECH)

Ms. S. L. Pyle (ANO)

Mr. L. J. Smith (ECH)

Ms. S. W. Turnage (ECH)

Corporate File

ATTACHMENT CNRO-2014-00009 RESPONSE TO REQUEST FOR ADDITIONAL INFORMATION

Attachment to CNRO-2014-00009 Page 1 of 4 RESPONSE TO REQUEST FOR ADDITIONAL INFORMATION ENTERGY OPERATIONS, INC.

DOCKET NOS. 72-43, 72-51, 72-1044, 72-07, 72-12, 72-59 DECOMMISSIONING FUNDING PLANS FOR INDEPENDENT SPENT FUEL STORAGE INSTALLATIONS FOR ARKANSAS NUCLEAR ONE UNITS 1 AND 2, GRAND GULF NUCLEAR STATION, RIVER BEND STATION, AND WATERFORD 3 STEAM ELECTRIC STATION By letter dated December 17, 2012 (ADAMS Accession No. ML12354A131), Entergy Operations, Inc. (EOI), acting as agent for the owner licensees listed in the letter, submitted Independent Spent Fuel Storage Installation (ISFSI) decommissioning funding plans pursuant to 10 CFR 72.30. By letter dated April 30, 2014 (ADAMS Accession No. ML14120A273), the NRC issued a Request for Additional Information (RAI) related to the ISFSI decommissioning reports for Arkansas Nuclear One Units 1 and 2 (ANO), Grand Gulf Nuclear Station (GGNS), River Bend Station (RBS), and Waterford 3 Steam Electric Station (W3). EOIs response is provided below.

RAI #1: Certification of Financial Assurance In the December 17, 2012, submittal, EOI stated for each licensee on whose behalf it submitted a decommissioning funding plan:

The attachment for each plant shows that the surpluses in the 10 CFR 50.75 Decommissioning Trust Funds exceed the estimated costs of ISFSI decommissioning, as summarized in the following table. The Trust Fund balances account for the 10 CFR 50 license expiration dates and the ISFSI decommissioning cost estimates (DCE) assume all costs are incurred in the year following the year in which spent fuel has been fully removed from the ISFSI. The values are reported in 2012 dollars. The fund value for Big Rock Point is in the form of a Parent Guarantee, since the 10 CFR 50.75 Decommissioning Trust Fund is no longer applicable for that site. This letter constitutes a certification that financial assurance is provided to cover the estimated costs of ISFSI decommissioning.

It is not evident from either your Decommissioning Funding Status reports dated March 31, 2011, (ADAMS Accession No. ML110940138) and March 29, 2013, (ADAMS Accession No. ML13092A213), or your ISFSI-related submission, that funds specific to ISFSI decommissioning are accounted for in either the radiological or non-radiological portions of

Attachment to CNRO-2014-00009 Page 2 of 4 your decommissioning trust accounts. Accordingly, the NRC staff cannot determine whether funds for ISFSI decommissioning reside within your trust accounts and whether Entergy is in compliance with 10 CFR 72.30(b).

Under 10 CFR 72.30(e)(5), licensees can use the financial assurance methods in 10 CFR 50.75(b), (e), and (h), as applicable, to satisfy 10 CFR 72.30 requirements. However, to satisfy 10 CFR 72.30 requirements, the funds set aside to cover the costs of decommissioning the ISFSI cannot be the same funds the licensee will use for the 10 CFR Part 50 reactor decommissioning. Note that the minimum amount in 10 CFR 50.75(c) is not intended to cover the ISFSI decommissioning costs. The funds necessary to satisfy the 10 CFR Part 50 reactor decommissioning financial assurance requirements are not to include costs for ISFSI decommissioning. A licensee can hold ISFSI decommissioning and reactor decommissioning funds in the same financial instrument, but the licensee must be able to show that ISFSI decommissioning and reactor decommissioning funds are separately tracked. Also, 10 CFR 72.30(e)(5) references the financial assurance methods in 10 CFR 50.75(b), (e), and (h), as applicable, but does not reference 10 CFR 50.75(f), which concerns reactor decommissioning cost estimates.

For the above reasons, it is not clear to the NRC staff if your certification meets the 10 CFR 72.30(b) requirements, under which a licensee must certify that financial assurance for decommissioning its ISFSI has been provided. This certification must show that such financial assurance equals the amount of the ISFSI decommissioning cost estimate.

Specifically, under 10 CFR 72.30(b)(4):

Each holder of, or applicant for a license under this part must submit for NRC review and approval a decommissioning funding plan that must contain:

A description of the method of assuring funds for decommissioning from paragraph (e) of this section, including means for adjusting cost estimates and associated funding levels periodically over the life of the facility.

Further, under 10 CFR 72.30(b)(6):

Each holder of, or applicant for, a license under this part must submit for NRC review and approval a decommissioning funding plan that must contain:

A certification that financial assurance for decommissioning has been provided in the amount of the cost estimate for decommissioning.

If funds from a 10 CFR Part 50 external sinking fund are to be used for Part 72 decommissioning, the NRC staff must be able to determine that adequate funds for ISFSI decommissioning reside within your external sinking fund. Moreover, these funds need to be reported separately for each ISFSI and be identified as a separate line item.

Therefore, the staff requests that you provide:

1.

The breakdown of the decommissioning trust funds, including subaccount titles and funding levels for the ISFSIs at: (1) Arkansas Nuclear One Units 1 & 2, (2) Grand Gulf Nuclear Station, (3) River Bend Station, and (4) Waterford 3 Steam Electric Station.

Attachment to CNRO-2014-00009 Page 3 of 4

2.

Identification of all additional funding methods or mechanisms that are currently being used (such as a parent company guarantee) to supplement the external sinking fund or other ISFSI decommissioning funding method(s) being used.

3.

The current funding amounts in, or represented by, all such funding methods.

Please note: For all such funding methods, funds may be held in separate subaccounts that are identified for ISFSI decommissioning.

4.

If in your March 31, 2011, and March 29, 2013, 10 CFR 50.75(f) reports and the December 17, 2012, 10 CFR 72.30(b) submittals, you reported a single amount that included both estimated reactor and ISFSI decommissioning costs, then you should explicitly identify in your response: (1) the estimated reactor decommissioning cost, and (2) the estimated ISFSI decommissioning cost.

Please note: Future 10 CFR 50.75(f) reports should clearly delineate estimated reactor and ISFSI decommissioning costs.

This information is needed to verify compliance with 10 CFR 72.30(b).

Response to Subparts 1, 2, and 3 As noted in EOIs December 17, 2012 10 CFR 72.30 filings in the Financial Assurance sections for each facility (ADAMS Accession No. ML12354A131), until such time as the costs can be recovered from the U.S. Department of Energy (DOE) attributable to the DOEs failure to perform its spent fuel removal obligations, each of the licensees plans to use the funds in its respective decommissioning trust fund to terminate its ISFSI license and release its facility for unrestricted use. The funds that each licensee has dedicated to cover the costs of decommissioning its ISFSI represent funds in its decommissioning trust that are in excess of the funds in that trust that are dedicated to 10 CFR Part 50 reactor decommissioning.

The table below sets forth: (1) the decommissioning funds that were available as of the 10 CFR 72.30 filing (October 1, 2012), (2) the decommissioning funds that were available as of that date with earnings, (3) the funding required for each facility for reactor decommissioning per 10 CFR Part 50, (4) the amount in the decommissioning fund as of October 1, 2012 that are in excess of the amount required for 10 CFR Part 50 decommissioning, and (5) the estimated ISFSI decommissioning cost computed as of October 1, 2012. The portion of the excess that is equal to the amount of the ISFSI decommissioning cost estimate represents the funds reserved to comply with 10 CFR 72.30.

Please note that the information presented for GGNS and RBS in the table reflects the following:

For GGNS, percentages of ownership of System Energy Resources, Inc. (SERI) and South Mississippi Electric Power Association (SMEPA), which are 90% and 10%,

respectively; For RBS, regulated and unregulated portions of 70% and 30%, respectively.

Attachment to CNRO-2014-00009 Page 4 of 4 Plant Site Decom. Trust Funds Oct. 1, 20121 Decom.

Trust Funds w/ Earnings

([A])2 10 CFR Part 50 Decom.

Amount ([B])3 Surplus

([A] - [B])

ISFSI Decom.

Cost Est.4 ANO Unit 1

$337M

$703M

$447M

$256M

$3.76M Unit 2

$263M

$670M

$465M

$205M GGNS SERI

$484M

$969M

$565M

$404M

$3.53M SMEPA

$43M

$65M

$63M

$2M RBS Reg

$220M

$536M

$429M

$107M

$3.15M Unreg

$255M

$354M

$184M

$170M W3

$286M

$550M

$481M

$69M

$3.02M As shown in the table, as of December 31, 2012 each facilitys decommissioning trust fund has sufficient funds to cover both its 10 CFR Part 50 decommissioning obligations and its ISFSI decommissioning obligations. Consequently, no additional funding methods or mechanisms are currently being used to provide funding assurance for each licensees Part 72 decommissioning (Subpart 2).

Further, the current funding amount for each facilitys Part 72 decommissioning is the amount in its decommissioning trust fund that is equal to the amount of its ISFSI decommissioning cost estimate (Subpart 3).

Response to Subpart 4 The March 31, 2011 and March 29, 2013 10 CFR 50.75(f) reports, and the December 17, 2012 10 CFR 72.30(b) report, did not include ISFSI decommissioning costs (except where costs were expressly noted to be ISFSI costs in the 10 CFR 72.30(b) report), in the NRC minimum amounts.

EOI acknowledges the NRCs request that future 10 CFR 50.75(f) reports should separately delineate estimated reactor and ISFSI decommissioning costs.

1 See the entry Amount in Trust Fund in Tables 3 and 4 of the ANO, GGNS, and RBS ISFSI Decommissioning Funding Plans and in Table 3 of the W3 ISFSI Decommissioning Funding Plan.

2 See the entry Total of Steps 1-3 in Tables 3 and 4 of the ANO, GGNS, and RBS ISFSI Decommissioning Funding Plans and in Table 3 of the W3 ISFSI Decommissioning Funding Plan.

3 See the entry Amount of NRC Minimum / Site Specific in Tables 3 and 4 of the ANO, GGNS, and RBS ISFSI Decommissioning Funding Plans and in Table 3 of the W3 ISFSI Decommissioning Funding Plan.

4 See the entry Total (w/25% contingency) in Table 2 of the ANO, GGNS, RBS, and W3 ISFSI Decommissioning Funding Plans.