GO2-12-187, Guarantee of Payment of Deferred Premium
| ML12363A100 | |
| Person / Time | |
|---|---|
| Site: | Columbia  |
| Issue date: | 12/20/2012 |
| From: | Ridge B Energy Northwest |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| GO2-12-187 | |
| Download: ML12363A100 (9) | |
Text
Brent Ridge ENERG Vice President, Chief Financial Officer P.O. Box 968, Mail Drop PE14 9NT Richland, WA 99352-0968 NORTWESTPh. 509-377-8776 F. 509-377-4118 bridge@energy-northwest.com December 20, 2012 10 CFR 140.21 G02-12-187 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001
Subject:
COLUMBIA GENERATING STATION, DOCKET NO. 50-397 GUARANTEE OF PAYMENT OF DEFERRED PREMIUM
Reference:
Letter dated December 19, 1984, GC Sorensen (Supply System) to A.
Schwencer (NRC), same subject
Dear Sir or Madam:
This letter is provided in compliance with 10 CFR 140.21, which requires annual filing of a guarantee of payment of deferred premiums in the amount of $17.5 million for each licensed reactor.
Energy Northwest, a joint operating agency and municipal corporation for the state of Washington, obtains revenue from Columbia Generation Station by selling the capability of the plant. The Bonneville Power Administration, (BPA), an agency of the U.S.
Department of Energy, has purchased the entire capability of Columbia Generating Station from certain of its statutory preference customers known as Participants through agreements referred to as Net Billing Agreements. BPA and Energy Northwest (then known as Washington Public Power Supply System) entered into Net Billing Agreements with various Participants on the same terms and representative samples of these agreements have been previously provided.
In May of 2006, Energy Northwest and BPA entered into a Direct Pay Agreement and a copy of that Agreement is included with this letter as Exhibit 1. Among the terms of the Direct Pay Agreement, BPA agrees to pay to Energy Northwest all costs for the operation of Columbia Generating Station (less amounts Energy Northwest estimates it will receive from sources other than under the terms of any Net Billing Agreement relating to the operation of Columbia Generation Station) and an amount sufficient to maintain a reasonable working capital balance. BPA has also provided to Energy Northwest a letter dated December 6, 2012, that states it has a commitment to pay decommissioning costs for Columbia Generating Station and its Independent Spent Fuel Storage Installation (ISFSI), attached as Exhibit 2.
Id
4 GUARANTEE OF PAYMENT OF DEFERRED PREMIUM Page 2 of 2 The terms of the Direct Pay Agreement and BPA's obligations thereunder to pay Energy Northwest operating costs and provide reasonable capital funds for Columbia Generating Station satisfies the requirements of 10 CFR 140.21. If you have any questions, please contact Mr. John Irvan at 509-377-4171.
Respectfully, Brent Ridge Vice President/Chief Financial Officer Exhibit 1 -- Direct Pay Agreement, Contract No. 06P-1 1731 Exhibit 2 - Letter from BPA dated December 6, 2012, to Energy Northwest cc: NRC Region IV Administrator AJ Rapacz - BPA/1 399 NRC NRR Project Manager WA Horin - Winston & Strawn NRC Sr. Resident Inspector - 988C
Contract No. 06PB-1 1731 C0LUMBIA GENER ATING STATION DIRECT PAY. AGREEMENT executed by the:
UNITED STATES OF AMERICA DEPARTMENT OFENERGY acting by and through the Administrator of the:
BONNEVILLE POWER ADMINISTRATION and:.
ENERGY NORTHWEST Relating to, the Payment of the Costs of Energy Northwest's Coliumbia Generatig station ona Current Basis T.his COLUMBIA GENERATING STATION DIRECT PAY AGREEMENT
("Direct Pay Agreement":): by and'-between ?Energy. Northwest (formerly known as Washington Public PWer :Supply' System), a joint operating agency and municipal cororation of the State of Washington organized anid'existing under Chapter 43.52 of the Rev"ised Code of Washirngtoni a'ndthe United Staies, -of America, Department of Energy.ý acting by and through the Administrator': of the,. Bonnev'ile Power Administration
("Bonneville" and:together witlhEnergy Northwest, the .Partiesý').
- W I T N. E118:$E :SE f :H WHEREAS,. 'Ehergy Northwest and agreements (the "Net Bilfing Agreements" asBonneville"a eddboth party 'to certain:
hereinafteridefined), among Energy.
Northwcst, Bonneville and Participants friom timeto time as named in the related Net Billing Agreements' (collectively the "Participants" and. each individually, a "Participant),) for Energy .Northwesti's, Coliumnbia Geneiiating Statiodn (formerly known as of, Washington Publici Power putsuant: to: which NetrBilling Supply System Nuclear Project' Noi. 2) (the "Project"),
eAgremehts Energy Northwest agreed to sell' a related.,
participant's Share of.Project Capability of the Project for each Cont dtf Year to each Paicipart*,w hch assigndits respective; participant's Share to Bonreille; WHEREAS, theNet Billing' Agreements for thcProject:cont n certain provisions
.relating to. the budgeting, payent and netblling of project costs, asdescribed in the Net.
Billing Agreements; WFHREAS, the Net Billing Agreements cdntemplate thtatEnergy Northwest shall
- bill, budgeted ýcosts, plus amounts.:!sufficientAo. maintain a6reasonable working capital1
- balance, less amounts ::payable from so6ces o6ther tha'n the Net Billing Agreements to EXHIBIT 1
and receive offsetting credits in their purchases of power Participants, who shall subject to the terms of the Net Billing Agreements; transmission service from Bonneville,.
Agreement..
to enter into this Direct Pay WHEREAS, Bonneville is authorized and other law; and Project Act under section 2(f) of the Bonneville it may Energy Northwest is authorized to enter into agreements WHEREAS, Direct Pay Agreement; deem necessary, including this hereto mutually agree as follows:
NOW, THEREFORE, theParties of Direct Pay Agreement shall. be effective on the date I. Effective Date.. This execution..
terms used herein but not: otherwise defined herein
- 21. Definitions. All capitalized Agreements..
ascribed to them in the Net Billing as assigned, shall have the respective meanings through 14-03-19215 inclusive, (BPA Contract Nos. 14-03-19122 amended or supplemented).
a Washington Day" measanyday other than a Federa Iholiday, (a.) "Business State holiday,*or a weekend day. under "Monthly Invoice". means an invoice prepared by EnergyNorhwest (b.):
section 4.
Northwest..in an "Project Costs& means. the costs included by Energy accounting:
(c.).: Annual Budget and/or "monthly Annual Budget, Amended Net Billing Agreements.
statement," as provided in the Northwest.
Invoice" means an invoice prepared by Energy (d): "Supplemental under section 6.
to Maintain a Reasonable.
of Project Costs and Amounts Sufficient Bonneville.
- 3. Payment Capital Balance. Until further agreement of the Parties,
...Working estimates it will to pay (i) Project Costs less amounts Energy Northwest to be received agrees from sources other than payments receive in respect of the Project assuming this Direct Pay Agreement did not under the Net Billing Agreements, capital balance, and (ii) amounts, sufficient to maintain a reasonable working exist, each as provided herein.
Business Day of each Invoicing. Not later than the end of the twelfth an invoice of 4.. Monthly -shall submit to Bonneville month, Energy Northwest the following:
calendar estimated by Energy Northwest: to become due in working Project Costs necessary to maintain a reasonable month, including amounts supplement calendar shall.
in section 8. Energy Northwest capital balance as provided detail as the Parties may hereafter agree.
Monthly Invoices with additional I*2 Northwest Contract No. 06PB-1 1731, Energy
- 5. Payment of Monthly Invoices. On or before the earlier of (i) the end of the seventh Business Day aftervreceipt of a Monthly Invoice, or (ii), the end of the second BusinessjDay before the last calendar day in the month in which Energy Northwest submits a Monthly InVoice to: Bonneville, Bonneville shall pay or cause to be paid the full amount of such: Monthly Invoice to Energy Northwest.
- 6. Supplemental Invoicing within a Calendar. Month. If :at any time Energy Northwest: estimates 'that amounts to be:received from Bonneville as invoiced under secttion.. 4 will be or are, insUfficient.. to meet Project Costs When due, including amounts necessary to: maintain a reasonable working capital balance as provided in section 8, Energy Northwegt shall submit to Bonneville arn invoice for the amount of the. insufficiency. Energy Northwest shall supplementSupplemental Invoices with, additional detailas thePartiesmay hereafter agree.
- 7. Payment.of Supplemental Invoices. On or before the:: end of the seventh Business.
Day after the receipt-of a Suppleinental Ihoice,. Bonneville slal pay :rcause to be paid to. Energy Northwest the full amount of,such Supplemental Invoice.
8: Working Capital. In preparing a Monthly Invoice or ;Supplem6etl Ihvoice, Energy Northwest shallfinclude amounts to maintain a reasonable: working.capital balance for thejProject of not lowefr:than $3 million or such other amount as the Parties may hereafter agree. If Energy Northwest estimates that the working capital balance.for the Project is. greater than reasonably necessary, as:determined by; Energy Northwest, it may return, any excess funds received. hereunder to Bonne.ville*.6r credit such xpess :against the .next Monthly InoI.ce(s). in such amounts and at such times as the Parties may agree.
- 9. Billing Statements. ý Energy Northwest shall: at ..leastv annually' ubmit: a. Billing.:
Statement to each Participant, as. described in ..the, Net ;Billing Agreements,.
showing each Participant's .obligations under Such agreements less amounts expected. to be received from Bonneville, and, others, including amounts to be received fromn Bonneville. under this Direct Pay Agreement. Energy Northwest may: provide additional Billing 'Statements or monthly:accounting statemfents, as..
described:i~n:, the Net Billingý Agreements, as ýit. determines to.be appropriaq!.:
Energy Nirthwet shall promptly bill each-Participant its Participant's Shaeiunder" the Net:BillingAgreements if Bonneville fails:to make a payment when due under this Direota*P Agreeme'&nt.,i
- 10. Savings. Pioision. This. Direct.;Pay' Agreement .shall not amend, or in any: way.
affec&t the ,rights, and obligations ,of any party to: the.Net -Billing:Agreements and:,
such agreements remain in full force and effect.
1.f Reliance: on Payments'Hereunder. Energy Northwest agrees that. it shall ýtreat payments to be received by ýEnergy Northwest under this Direct Pay.Agreement as ContractvNo. O6PB- 11731, Energy Northwesta 3,
reducing:'amounts it' would include in a Billing! Statement or under a "monthly accounting statement;" as described in the Net Billing, Agreements.
- 12. No::Third Party Beneficiaries. This Direct,Pay Agreement shall inure only to the benefit of the Parties: and there are no intended third party beneficiaries of this Difrec'tPay Agreement.
113. Limited Oblikation.,to Make Payments. This' Direct Pay Agreement shall, not impose on Bonneville any obligation to pay amounts other thantamounts it would otherwise be. obligated to credit or pay to: Participants under the Net Billing Agreements,
- 14. Paymenit by Bonneville to Energy Northwest Obligees. Energy Northwest :and
,Bonneville may. make-arrangements for the., payment by:: Bonneville of all or any portionnof ProjectCosis hiereunder directly to an obligee ofEnergy Northwest.
This Direct. Pay Agreement 15.* No Amendmentor Assignment "Without Consent.
'may not be amended, and the rights -.and obligations hereunder may not be assigned or transferred exciept bymutual writtenmconsent of the, Parties:..
- 16. Communication. Unless otherwise :agreed by the Parties, all invoices provided herein, and all communicatiions; specifically required herein,. ShallI be: in writing, and may be communicated in person,, byregular mail, by faCSimile or other electroic means. :All paymentsý and, funds transfers provided .for. herein- shall be .made&by ofeetoi uds rasfer or other. commercially redsonable,meanhs. The means~~
Parties shalliat all timesprovide'each other withý such mailing, contact and account information, as: may. be necessaryto effect the provisions of this Direct PaY.
Agreement.. Untfil otherwise notified,,comrmurnicatiOns shall be directed as: follows:
Ift to Energy.Northwest:: If to Bonnieville fot payment or billing matters:
Energy Northwest: Bonneville Power Administration Address:, P.O. Box 968 Address: P.O. Box 968.
MD PE 60 MD, 1399, Richland, WA 099352-0968 Richland, WA 99352-0968, Attn: Rich Bresnahah: Attn, Dana.Sandlin' Phone: (509)372-5730, Phone: (509)372-5756 FAX-- (509)372-5649, FAX,: (509)372-5766 E-Mail rabrsnalhan@energY-northWest.cotmE-Mai lUdegrover@bpa.gov Contract NoQ. 06PB-11731, Energy Northwest 4:
If to Bonneville fornmatters :other than billing or payment matters:
Bonneville Power Administration Address: P.O. Box 968 MD 1399 Rich Iand, WA 99352-0968 Attn: Andrew J. Rpacz:
Phonee: (509)372-5752 FAX:. (509) 372-5766,
ýE-Mail: ajrapacz@bpa.gov
- 17. Payment. All payments and funds transfers providedfor herein shall be made by oher eommercially reasonable means.
means ofelectronic funds transfer otrt IN WITNESS WHEREOFi the, Paýies, heretb have 'executed thiS Di'rect, Pay Agreement in coun.erparts on: - , 7 * . ,.
UNITED STATES OF AMERICAI DEPARTMENT OFENERGY By-:e - /
ENERGY NORTHWEST.
By:
Chief. E.e.utive..Offifcer Contract No. 06PB 11,731, Energy Northwest .5
If to Bonneville for matters other than billing or payment matters:
Bonneville Power Administration.
Address: P.O. Box 968 MDA1399 Richland, WA 99352-0968 Attn: Andrew J. Rapacz Phone: (509) 372-5752 FAX: (509),372-5766
-EMail'ajrapaCz7bpa.,gov
- 17. Payment. All payments and funds transfers provided for herein shall be made by means. of electr6nic, funds transfer or other commercially reasonable means.
IN WITNESS WHEREOF, the Parties. hereto have executed this Direct Pay Agreement in counterparts on*-.- e _ Z*, ..
UNITED STATES .OF AMERICA DEPARTMENT OF.ENERGY By:
Administrator and Chief Executive Officer ENERGY NORTHWEST By: ,,3/4
... Chieft xec.utive Offic0er Contract No. 06PB-1* 1731., E.nergy Northwest5 5:
Department of Energy Bonneville Power Administration Mall Drop 1399 P.O. Box 968 Richland, Washington 99352-0968 POWER BUSINESS LINE December 6, 2012 In reply refer to: PGC/Richland Mr. Mark Reddemann, Chief Executive Officer Energy Northwest M/D 1023 P.O. Box 968 Richland, WA 99352-0968
Dear Mr. Reddemann:
The Bonneville Power Administration (BPA) entered into a contract in 1970 with the Energy Northwest then known as the Washington Public Power Supply System regarding Columbia Generating Station (CGS). Under this contract, BPA provides the funding for CGS's costs and in turn receives 100 percent share of its power. This contract remains in place until its termination at the end of all decommissioning activities. BPA has a commitment to pay any decommissioning costs attributable to Energy Northwest for both the CGS Nuclear Plant and its Independent Spent Fuel Storage Installation (ISFSI). The CGS costs including contributions into the trust funds for decommissioning of the plant and ISFSI are included in BPA's costs which are required by law to be recovered by BPA from its ratepayers.
If you have any questions concerning this correspondence, please contact Dana Sandlin at (509) 372-5756.
Sincerely, Andrew J. Rapacz, Manager Contract Generating Resources cc:
Mr. Brad Sawatzke, Energy Northwest - PE08 Mr. Robert Dutton, Energy Northwest - PE13 Mr. Donald Gregoire, Energy Northwest -PE20 EXHIBIT 2