L-07-047, Re Retrospective Premium Guarantee

Re Retrospective Premium Guarantee

ML070890403
Person / Time
Site:	Beaver Valley, Davis Besse, Perry
Issue date:	03/05/2007
From:	Scilla R FirstEnergy Corp
To:	Dinitz I Office of Nuclear Reactor Regulation
References
BV-No. L-07-047, DB-Serial No-3325, PY-CEI/NRR-3027L
Download: ML070890403 (3)

Text

Fi"t y e Akron, Ohio 44308-1890 Randy Scilla 330-384-5202 Assistant Treasurer Fax: 330-384-3772 March 5, 2007 PY-CEIINRR-3027L DB-Serial No.-3325 BV-No. L-07-047 Mr. Ira Dinitz U.S. Nuclear Regulatory Commission Office of Nuclear Reactor Regulation Washington, D.C. 20555 Dear Mr. Dinitz; Re: Docket Nos. 50-346, 50-440, 50-412, 50-334 Retrospective Premium Guarantee FirstEnergy Corp. (parent of FirstEnergy Nuclear Generation Corp., The Toledo Edison Company and Ohio Edison Company) hereby provides the documents described below as evidence of its guarantee of the retrospective premiums, which may be served against the Davis-Besse Unit No. 1 ($15,000,000), Perry Unit No. 1 ($15,000,000), Beaver Valley Unit No. I

($15,000,000) and Beaver Valley Unit No. 2 ($15,000,000) reactor licenses, per Section 140.21 of 10 CFR Part 140.

(1) A 2007 Internal Cash Flow Projection for FirstEnergy Corp. certified by the Assistant Treasurer of the Company.

(2) FirstEnergy Corp. Annual Report for 2006 will be provided when available.

Very trul

Enclosures:

S:\Treasury\SHR TRS\Financial Studies\JMM\NRC Filing - March 2007\NRC Filing Cover Letter '07.doc.

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FIRSTENERGY CORP.

2007 INTERNAL CASH FLOW PROJECTION FOR DAVIS-BESSE UNIT NO. 1, PERRY UNIT NO. 1, AND BEAVER VALLEY UNIT NOS. 1 AND 2 NUCLEAR POWER PLANTS (Dollars in Thousands) 2007, Proijected Cash Flows:

Retained Earnings, Depreciation and Amortization $2,024,000 Deferred Income Taxes and Investment Tax Credits 18,000 Allowance for Funds Used (26,000)

During Construction and Carrying Charges Deferred Operating Expenses (539.000)

Net Cash Flows $1.477.000 Internal Cash Flow $1.477.000 Average Quarterly Cash Flow $369,250 Percentage Ownership in Units:

Davis-Besse Unit No. 1 100.00%

Perry Unit No. 1 100.00%

Beaver Valley Unit No. 2 100.00%

Beaver Valley Unit No. 1 100.00%

Maximum Total Contingent Liability $60.000 CERTIFICATION I, Randy Scilla, Assistant Treasurer of FirstEnergy Corp., hereby certifies that the foregoing Internal Cash Flow Projection for calendar year 2007 is derived from reasonable assumptions and is a reasonable estimate.

Date 1knySil S:\Treasuiry\SHRTR*S\Financial Studics\JMM\NRC Filing - March 2007\NRC Filing ':nsh Flow projection.doc

FENOC 10 Center Perry Nuclear RoadPower Plant Perry, Ohio 44081 FirstEnergyNuclear OperatingCompany Regulatory Compliance Section Mail Stop - A210 U.S. Nuclear Regulatory Commission Document Control Desk Washington, D.C. 20555 PY 925.2