LR-N05-0503, Additional Information Regarding License Transfer Application

Additional Information Regarding License Transfer Application

ML052920067
Person / Time
Site:	Salem, Hope Creek
Issue date:	10/06/2005
From:	Benyak D Public Service Electric & Gas Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
LCR H05-03, LCR S05-02, LR-N05-0503
Download: ML052920067 (5)

Text

PSEG Nuclear LLC P.O. Box 236, Hancocks Bridge, New Jersey 08038-0236 OCT 0 6 2005 PSE E NluclearLLC LR-N05-0503 LCR H05-03 LCR S05-02 U.S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, DC 20555-0001 ADDITIONAL INFORMATION REGARDING LICENSE TRANSFER APPLICATION SALEM AND HOPE CREEK GENERATING STATIONS FACILITY OPERATING LICENSE NUMBERS DPR-70, DPR-75, AND NPF-57 DOCKET NOS. 50-272, 50-311 AND 50-354

References:

1) PSEG Nuclear, LLC Letter, "Proposed License Transfer and Conforming License Amendments," dated March 8, 2005

2) Exelon Generation Company, LLC and AmerGen Energy Company, LLC Letter, "Additional Information Regarding License Transfer Applications," dated May 24, 2005

3) Exelon Generation Company, LLC Letter, "Additional Information Regarding License Transfer Application," dated October 5, 2005 Based on a telephone conference call between representatives of Exelon Generation Company, LLC (Exelon Generation), PSEG Nuclear, LLC (PSEG Nuclear) and the NRC on September 26, 2005, PSEG agreed to provide some clarifications to financial information regarding the request for license transfers associated with the proposed merger of Exelon Corporation and Public Service Enterprise Group. Attachment 1 provides the additional information.

Included in Attachment I are clarifications to the projected income statement and associated assumptions that were provided in References 1 and 2. Portions of the information in Attachment 1 have been redacted and are being provided by Exelon Generation in Reference 3. Accordingly, the information supplied by PSEG Nuclear is non-proprietary and suitable for public disclosure.

95-2168 REV. 7/99

Document Control Desk OCT 0 6 2005 LR-N05-0503 If you have any questions about this letter, please contact Jeffrie Keenan at (856) 339-5429.

Sincerely, Darin Benyak Director - Regulatory Assurance Attachment C: Mr. S. Collins, Administrator- Region I U. S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 Mr. S. Bailey, Project Manager U. S. Nuclear Regulatory Commission Mail Stop 08B1 Washington, DC 20555 USNRC Senior Resident Inspectors (Salem and Hope Creek - X24)

Mr. K. Tosch, Manager IV Bureau of Nuclear Engineering 33 Arctic Parkway P.O. Box 415 Trenton, NJ 08625

- LR-N05-0503 LCR H05-03 LCR S05-02 SALEM AND HOPE CREEK GENERATING STATIONS FACILITY OPERATING LICENSE NUMBERS DPR-70, DPR-75, AND NPF-57 DOCKET NOS. 50-272, 50-311 AND 50-354 ADDITIONAL INFORMATION REGARDING LICENSE TRANSFER APPLICATION CLARIFICATIONS TO EXELON GENERATION CONSOLIDATED COMPANY PROJECTED INCOME STATEMENT CLARIFICATION TO PROJECTED INCOME STATEMENT ASSUMPTIONS

Exelon Generation Consolidated Company Projected Income Statement (with Purchase Accounting) ($M) (1) 2006 2007 2008 2009 2010 (2)

I Operating Revenues (3)

I Operating Expenses (4)

Purchased Power Fuel Operation & Maintenance Depreciation & Amortization Administrative & Other Total Operating Expenses redacted Operating Income (Loss)

Other Income (Deductions)

Income before Income Taxes Income Taxes -

Total Extraordinary Items Net Income (Loss) =

Note 1: Projected Income Statement does not reflect the effect of our market power mitigation plan to divest 5,500 MW of capacity, as such plan has not yet been finalized. Even with the mitigation plan In effect, change to the Projected Income statement will not be material.

Note 2: Detailed long range planning for Exelon Generation covered the period from 2006 to 2009; projected Net Income In 2010 is the same as 2009 based on the assumption of no projected growth.

Note 3: Revenue Iscalculated based on owned asset generation output multiplied by sales prices [ I plus revenue from Purchased Power [ ]. Sales prices are based on Purchase Power Agreements [ ] with counterparties (market participants) or from reverse auction contracts. Sales are predominately [ Iwith Exelon Electric & Gas subsidiaries: ComEd, PECO, and PSE&G. In addition, miscellaneous revenue from fuel trading, purchase accounting adjustments, and merger synergies is included [ I.

Note 4: Purchase Power Includes non-owned generation purchased on the spot market or through Purchase Power Agreements.

Fuels expense includes coal, oil, natural gas and amortization of nuclear fuel (including spent nuclear fuel fee).

Operation & Maintenance expense Includes labor, pension and benefits, parts and materials, services and outage costs.

Depreciation and amortization costs are on Genco assets (plant, property, equipment and software). Adminstrative and Other expenses include corporate center costs allocated to Exelon Generation, including headquarters cost. IT,Supply, HR and Finance.

EXELON GENERATION AND PSEG POWER CONSOLIDATION Key Assumptions 2006 2007 2008 2009 2010 Generation (GWh)

Fossil & Hydro Nuclear Subtotal Purchases from Other Suppliers rdce Total Supply (GWh)

Market Sales (GWh)

Average Market Price ($IMWh) (5)

Scheduled Nuclear Refueling Outages Note 5: Average Market Price is based on a conservative estimate of the future around-the-clock market prices as of the third quarter of 2004.

Revenue estimates are calculated using actual Purchase Power Agreement prices [.

PROJECTED INCOME STATEMENT ASSUMPTIONS (NON-PROPRIETARY)

Net Annual Mean Rating for the Units, Includes Upratings Quad..d.......o.

Year i U Byron 1. Byron 2 Csiton Dresden 2 Dresden 3 LaSalle 11 LaSalle 2 C Limerick 1 Limerick 2 Ct otoPe BhTMI aem .Salem2 Cree wood I wood 2 C.ties.... CitesCroo Bottom 2 Bottom 3 CSaer1ooimk 2006 2007 2008 2009 2010 Resultant Net Capacity Factors - By Unit Yer,,woo Wild Braid. Ctiea2

2. Llme c 2Hop m Y  : dd2 Byroni: Byr Clinton Dresden 2 Dresden 3 LaSaile I: LaSale 2 Quld.Quat LOeer a2 cChe 2006 2006 oo Limerick Limer...

ck..Cre.Ckles Bottom 2 Bottom 3 ~ SlmISim.re 2007 2008 2009 2010 Refueling Outages . By Unit Bri 2 ri>.Quad Quad Oyte Peach: "Peach Hp Ya wr wood I. wwood 22 Byron

. i Byron2 Cinton . Dresdn 2

.......... aDreden 3 LaSalle 1 LiSalie 2 Cities I .. .Cities 2 Lime.

.-- Limerick

.. - re, rTMIB.t y2te otm otm . . Salem I ... Salem 2i Creek 2006 2007 2008 2009 2010 Fleet Wide Number of Capacity Refueling Factor Outages 2006 2007 2008 2009 2010 NOTE: Based on Analysis Performed for Merger Proposal 12120/04 NOTE: Prior years capacity factors for Hope Creek were 95% In 2002, 78% In 2003 and 66% in 2004. Forward projections represent significant improvement for Hope Creek under Exelon Generation due to application of the Exelon Nuclear Management Model. Management Model controls include outage planning and execution, material condition Improvement and long term asset management programs, and fundamental principles of operation.