CY-23-007, Independent Spent Fuel Storage Installation - Funding Status Report for Managing Irradiated Fuel and GTCC Waste
| ML23088A203 | |
| Person / Time | |
|---|---|
| Site: | Haddam Neck File:Connecticut Yankee Atomic Power Co icon.png |
| Issue date: | 03/06/2023 |
| From: | Conry T Connecticut Yankee Atomic Power Co |
| To: | Office of Nuclear Material Safety and Safeguards |
| References | |
| CY-23-007 | |
| Download: ML23088A203 (1) | |
Text
CONNECTICUT YANKEE ATOMIC POWER COMPANY HADDAM NECK PLANT 362 INJUN HOLLOW ROAD EAST HAMPTON, CT 06424-3099 ATTN: Document Control Desk U.S. Nuclear Regulatory Commission Washington, DC 20555 - 0001 Connecticut Yankee Atomic Power Company March 6, 2023 CY-23-007 10 CFR50.4 10 CFR 50.82(a)(8)(vii)
Haddam Neck Plant Independent Spent Fuel Storage Installation
.., OJ NRC License No. DPR-61 (NRC Docket No. 50-213) 7 2 - Oc; /
Subject:
Funding Status Report for Managing Irradiated Fuel and GTCC Waste On December 5, 1996, Connecticut Yankee Atomic Power Company (CY APCO) informed the USNRC that the Board of Directors of CY APCO 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 CY APCO license to permanently withdraw CY APCO's authority to operate the reactor. In 1996, CY APCO 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, CY APCO 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, CY APCO 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.
Connecticut Yankee Atomic Power Company CY-23-007\\March 6, 2023\\Page 2 If you have any questions regarding this letter, please do not hesitate to contact me at (508) 612-3322.
Attachment:
- 1. Funding Status Report for Managing Irradiated Fuel and GTCC Waste at the Haddam N eek Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2022)
References:
- 1. CY APCO letter to USNRC, "Haddam N eek 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 CY APCO, "Haddam Neck Plant - Release of Land from Part 50 License,"
dated November 26, 2007 cc: R. Lorson, NRC Region I Administrator A. Dimitriadis, Chief, Decommissioning Branch, NRC, Region 1 Y. Diaz-Sanabria, Chief, Division of Fuel Management, Storage and Transportation Licensing Branch J.
Semancik, Director, CT DEEP, Radiation Division
ATTACHMENT 1 TO CY-23-007 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 12/31/2022) to CY-23-007 Funding Status Report for the Managing oflrradiated Fuel and GTCC Waste at the Haddam Neck Plant Independent Spent Fuel Storage Installation (Status as of 12/31/2022) 10 CFR Requirement
Response
Comment 10 CFR 50.82(a)(8)(vii) Requirements
- 1. The amount of funds accumulated
~$148.0 Connecticut Yankee Atomic Power Company (CY APCO) has established an account to cover the cost of managing the million (as of within its Nuclear Decommissioning Trust (NDT) entitled, "ISFSI Radiological irradiated fuel.
12/31/2022)
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 NOT. The market balance represented here as of December 31, 2022 excludes the funds set-aside for decommissioning the ISFSI.
- 2. The projected cost of managing
~$241.7 The current cost estimate for management of spent fuel and Greater than Class C irradiated fuel until title to the million (2023 (GTCC) waste was submitted to the NRC on December 10, 2021.
fuel and possession of the fuel is
-2038*)
transferred to the Secretary of (In 2022
- Currently, the irradiated fuel and GTCC waste are scheduled to be removed from the Energy.
dollars) site by 203 8, with decommissioning, license termination, and business closure occurring after that time period.
- 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, CY APCO may collect 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 CY APCO, 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, CY APCO has the ongoing ability to seek collections from its purchasers for additional funds that may be required to cover these costs.
Second, CY APCO has received proceeds from the successful litigation of several phases 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. CYAPCO Page 1 of2
Attachment to CY-23-007 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 12/31/2022) 10 CFR Requirement
Response
Comment 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.
A CYAPCO FERC filing 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. If future damage recovery does not occur, the Company can apply to FERC for more funding, if necessary. The approved FERC filing also requires CY APCO to provide an infonnational filing regarding the adequacy of
- funding if five years pass without receipt of damage awards from litigation with the DOE.
Third, CY APCO 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 4.0%.
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