CY-14-012, Connecticut Yankee Atomic Power Company - Haddam Neck Plant Independent Spent Fuel Storage Installation

Connecticut Yankee Atomic Power Company - Haddam Neck Plant Independent Spent Fuel Storage Installation

ML14085A018
Person / Time
Site:	Haddam Neck  File:Connecticut Yankee Atomic Power Co icon.png
Issue date:	03/11/2014
From:	Pizzella C Connecticut Yankee Atomic Power Co
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
CY-14-012
Download: ML14085A018 (6)

Text

• CONNECTICUT YANKEE ATOMIC POWER COMPANY HADDAM NECK PLANT 362 INJUN HOLLOW ROAD - EAST HAMPTON, CT 06424-3099 March 11, 2014 CY-14-012 10 CFR 50.4 10 CFR 50.82(a)(8)(vii)

ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555 - 0001 Connecticut Yankee Atomic Power Company Haddam Neck Plant Independent Spent Fuel Storage Installation NRC License No. DPR-61 (NRC Docket Nos. 50-213 and 72-39)

Subject:

Funding Status Report for Managing Irradiated Fuel and GTCC Waste On December 5, 1996, Connecticut Yankee Atomic Power Company (CYAPCO) informed the USNRC that the Board of Directors of CYAPCO had decided to permanently cease operations at the Haddam Neck Plant and that fuel had been permanently removed from the reactor (Reference 1). In accordance with 10 CFR 50.82(a)(2), the certifications in the letter modified the CYAPCO license to permanently withdraw CYAPCO's authority to operate the reactor. In 1996, CYAPCO commenced decommissioning the power plant. On November 26, 2007, the NRC released most of the formerly licensed land for unrestricted use, shrinking the licensed land to that utilized to support the Independent Spent Fuel Storage Installation (ISFSI) only (Reference 2). Presently, CYAPCO is storing irradiated fuel and Greater than Class C (GTCC) waste on site until the Department of Energy (DOE) satisfies its contractual obligations to take title and possession of the spent fuel and GTCC waste and remove them from the site.

In Attachment 1, CYAPCO provides the attached Funding Status Report for Managing Irradiated Fuel and GTCC Waste at the Haddam Neck Plant ISFSI to comply with 10 CFR 50.82(a)(8)(vii).

This letter contains no regulatory commitments.

If you have any questions regarding this letter, please do not hesitate to contact me at (860) 267-6426 x304.

Aespecttly Carla M. Pizzella Vice President, Chief Financial Officer, and Treasurer

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Connecticut Yankee Atomic Power Company CY-14-012\March 11, 2014\Page 2

Attachment:

1. Funding Status Report for Managing Irradiated Fuel and GTCC Waste at the Haddam Neck Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2013)

References:

1. CYAPCO letter to USNRC, "Haddam Neck Plant Certifications of Permanent Cessation of Power Operation and that Fuel Has Been Permanently Removed from the Reactor Vessel,"

dated December 5, 1996

2. USNRC letter to CYAPCO, "Haddam Neck Plant - Release of Land from Part 50 License,"

dated November 26, 2007 cc: W. M. Dean, NRC Region I Administrator M. S. Ferdas, Chief, Decommissioning Branch, NRC, Region 1 J. Goshen, NRC Project Manager Director, CT DEEP, Radiation Division

CY-14-012 ATTACHMENT 1 FUNDING STATUS REPORT FOR THE MANAGING OF IRRADIATED FUEL AND GTCC WASTE AT THE HADDAM NECK PLANT INDEPENDENT SPENT FUEL STORAGE INSTALLATION (STATUS AS OF 12/31/2013)

March 2014

Attachment 1 to CY-14-012 Funding Status Report for the Managing of Irradiated Fuel and GTCC Waste at the Haddam Neck Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2013) 10 CFR Requirement Response Comment 10 CFR 50.82(a)(8)(vii) Requirements

1. The amount of funds accumulated $291.7 million Connecticut Yankee Atomic Power Company (CYAPCO) has established an account to cover the cost of managing the (as of within its Nuclear Decommissioning Trust (NDT) entitled, "ISFSI Radiological irradiated fuel. 12/31/13) Decom" that segregates the funds for decommissioning of the Haddam Neck Plant Independent Spent Fuel Storage Installation (ISFSI) from the larger balance of funds for ongoing management of irradiated fuel and Greater than Class C (GTCC) waste, and the pre-1983 Department of Energy (DOE) Spent Fuel Obligation held in the NDT. The market balance represented here as of 12/31/2013 excludes the funds set-aside for decommissioning the ISFSI.

2. The projected cost of managing $231 million In 2013, CYAPCO submitted a revised cost estimate for management of the irradiated irradiated fuel until title to the (2014-2033) fuel and GTCC waste at the Haddam Neck Plant ISFSI to Federal Energy Regulatory fuel and possession of the fuel is (In 2013 Commission (FERC). It extended the duration of storage of irradiated fuel and GTCC transferred to the Secretary of dollars) waste based on recent information published by the DOE as a result of Blue Ribbon Energy. Commission recommendations. This cost estimate was approved by FERC in June, 2013.

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Attachment to CY-14-012 Funding Status Report for the Managing of Irradiated Fuel and GTCC Waste at the Haddam Neck Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2013) 10 CFR Requirement Response Comment

3. If the funds accumulated do not See Comment The Company has several methods of obtaining additional funds to cover projected cover the projected cost, a plan to costs.

obtain additional funds to cover the cost. First, CYAPCO is currently collecting funds through its power contracts and amendatory agreements under FERC regulation. The power contracts and the amendatory agreements specify the obligations of the purchasers for the costs of CYAPCO, including the ongoing costs of managing irradiated fuel and GTCC waste, and the costs associated with CYAPCO's pre-1983 DOE Spent Fuel Obligation.

Pursuant to these power contracts, CYAPCO has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.

Second, CYAPCO has received proceeds from the successful litigation of the first phase of its breach of contract damages claims against the DOE for failure to begin the removal of spent nuclear fuel (SNF) and GTCC waste from the site in 1998. In addition, CYAPCO is expecting the proceeds from the successful litigation of the second phase of its breach of contract damages claim against the DOE. CYAPCO will continue to file claims against the DOE as long as the DOE continues to breach its contract obligations related to SNF and GTCC waste. To that end, in August, 2013 the Company filed a third round of claims against the DOE seeking damages for the years 2009 - 2012. Each of these prospective claims will likely result in the receipt of proceeds that can be used to offset future costs, if required.

Accordingly, CYAPCO's most recent FERC filing which was approved in June, 2013, implemented a fifteen year funding mechanism. Until the 2013 FERC filing, the Company had employed a "full funding" assumption in developing funding requirements. The fifteen year funding mechanism was put in place to incorporate the potential for the receipt of future DOE breach of contract damages as a source of funding as discussed above. If future damage recovery does not occur, the Company has the ability to apply to FERC for more funding, if necessary. The approved FERC filing also requires CYAPCO to provide an information filing regarding the adequacy of funding if five years pass without receipt of damage awards from litigation with the Page 2 of 3

Attachment to CY-14-012 Funding Status Report for the Managing of Irradiated Fuel and GTCC Waste at the Haddam Neck Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2013) 10 CFR Requirement Response Comment DOE.

Third, CYAPCO expects to utilize the investment return on Decommissioning Trust assets to offset future costs. The current assumed rate of investment return, after fees and taxes is 4.5%.

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