CY-99-042, Provides Info on Status of Decommissioning Funding for Haddam Neck Plant

Provides Info on Status of Decommissioning Funding for Haddam Neck Plant

ML20205F447
Person / Time
Site:	Haddam Neck File:Connecticut Yankee Atomic Power Co icon.png
Issue date:	03/31/1999
From:	Mellor R CONNECTICUT YANKEE ATOMIC POWER CO.
To:	NRC OFFICE OF INFORMATION RESOURCES MANAGEMENT (IRM)
References
CY-99-042, CY-99-42, NUDOCS 9904060261
Download: ML20205F447 (4)

Text

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CONNECTICUT YANKEE ATOMIC POWER COMPANY HADDAM NECK PLANT 362 INJUN HOLLOW ROAD e EAST HAMPToN. CT 06424-3099 March 31,1999 Docket No. 50-213 CY-99-042 Re: 10CFR50.75(f) l U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555 Haddam Neck Plant Decommissionina Fundina Assurance In accordance with 10CFR50.75(f), this letter provides information on the status of decommissioning funding for the Haddam Neck Plant. Attachment 1 provides the requested information. ,

1 On August 25,1998 U) CYAPCO submitted its site-specific decommissioning cost estimate for the Haddam Neck Plant (HNP) in accordance with 10CFR50.82(a)(8)(iii). This estimate '

was filed with the Federal Energy Regulatory Commission (FERC) in December 1996 (docket no. ER97-913-000) and estimated the cost to complete decommissioning at $426.7 million in 1996 dollars. Of this amount, $82,345,000 is for spent fuel storage and $7,043,000 is for site restoration. As of December 31,1998, withdrawal of trust funds for decommissioning expenses (1997 - October,1998) has amounted to approximately $58 million (not escalated).

The estimate assumes prompt removal / dismantling (DECON), and is based on an analysis of the HNP systems, components, and structures. The estimate is also based on the radioactive waste disposal options available to CYAPCO in late 1996 (e.g., alternative waste g/

disposal sites, barge transport, and various radwaste reprocessors). This estimate also includes provisions for site restoration, and for storage of spent fuel and greater than class C d(jo, (GTCC) wastes on the HNP site until 2022. Adjustments to the cost estimate will be made as 7 necessary as detailed work planning progresses and elements of the cost estimate are periodically reviewed and updated.

9904060261 990331  ;

PDR ADOCK0500g3 W CYAPCO Letter to USNRC," Site Specific Decommissioning Cost Estimate, dated August 25,1998, CY 107.

1028-3 REY 2-91

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U. S. Nucl=r Rngulatory Commission CY-99-042/Page 2 If you should have any questions, please contact Mr. G. P. van Noordennen at (860) 267-3938.

Very truly yours, OONNECTICUT YANKEE ATOMIC POWER COMPANY c D J e_

R. A. Mellor - Vice lhesident Operations and Decommissioning 4

cc: H. J. Miller, Region i Administrator T. L Fredrichs, NRC Project Manager, NRR E. L. Wilds, Director, CT DEP Monitoring and Radiation Division t

U. S. Nucirr R:gulatory Commission CY-99-042/Page 3 Attachment 1 NRC Decommissionina Fundina Status Report Connect! cut Yankee - Haddam Neck Plant (status as of 12/31/98)

The minimum decommissioning fund estimate, pursuant to 10 CFR 50.75 (b) and (c) $ 250 million The amount accumulated at the end of the calendar year preceding the date of the report for items included in 10 CFR 50.75 (b) and (c). (2) $ 261 million A schedule of the annual amounts remaining to be collected; for items in 10 CFR 50.75 (b) and (c).

amount remaining (2)(3) $ 214 million

1. years to collect 8.5 The assumptions used regarding escalation in decommissioning cost, rates of eamings on decommissioning funds, and rates of other factors used in funding projections; As part of its December 1996 filing with FERC, the Company, beginning March 1,1997

' under an interim rate order, has ?ncreased its decommissioning accruals to an annual rate of $24.8 million, subject to refund continuing through mid-2007. This revised annual accrual is based on an annual 4.5 percent decommissioning cost escalation rate and a 5.6 percent after-tax return on the trust funds.

Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(c);

Certification was provided in July 1990 W to certify the obligation of each wholesale purchaser from CYAPCO to be responsible for its share of the HNP decommissioning

• The amounts collected (market value) in the Trust are for all decomrnissioning costs including site restoration and long term spent fuel storage as well as decommissioning as defined in 10CFR50.2.

• In accordance with the interim rates approved by the FERC for the December 1996 FERC filing and CYAPCO Power Contracts, current collections into the fund amount to approximately $2.1 million per month and will continue through June 2007 (subject to final approval and subsequent periodic review by the FERC). On August 31,1998, the FERC Administrative Law Judge (ALJ) issued an initial decision regarding the 1996 rate filing. That decision called for the rejection of the decommissioning cost estimate as filed and recomrnended that the existing cost estimate be maintained. The basis of his decision was that it was "unreliabe" for rate-making purposes. If the decision is upheld, the current rate of decommissioning collections would decrease from $24.5 million to approximately $15.2 million based on a cost estimate of $3n9.1 million in 1992 dollars adjusted for an escalation rate of 3.8% per year. In its exception brief filec r Odober 1998, the Company has agreed to file a new cost estimate. The ALJ decision is not final unless it is approved by the FERC. A final decision by the FERC is not expected until September 1999. Until that time decommissioning collections continue at $25.5 million per year or approximately $2.1 million per month.

• CYAPCO Letter to USNRC," Decommissioning Financial Assurance Certification Report," dated July 18,1990.

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U. S. Nucinr R:gul tory Commission CY-99-042/Page 4 costs pursuant to the terms of the CYAPCO Power Contracts with each of its purchasers, which contracts have been filed as FERC approved rates.

Any rrodifications to a licensee's current method of providing financial assurar7ce occurring since the last submitted report.

None. An extemal Trust, in accordance with 10CFR50.75(e), was established in April 1984, and amended in 1987, to accumulate CYAPCO decommissioning funds.

Any material changes to trust agreements.

CYAPCO changed its decommissioning trustee from Fleet Bank to The t ank of New York effective December 1,1998. There were no material changes to the Trust i Agroement other than a " Trustee" name change.  ;

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