ML030970779
| ML030970779 | |
| Person / Time | |
|---|---|
| Site: | Peach Bottom  |
| Issue date: | 04/03/2003 |
| From: | Dave Solorio NRC/NRR/DLPM |
| To: | |
| Solorio, D L, NRR/DRIP/RLEP, 415-1973 | |
| References | |
| Download: ML030970779 (11) | |
Text
April 3, 2003 LICENSEE:
Exelon Generation Company, LLC (Exelon)
FACILITY:
Peach Bottom Atomic Power Station, Units 2 and 3
SUBJECT:
CONFERENCE CALL
SUMMARY
WITH EXELON CORPORATION TO DISCUSS MATTERS RELATED TO THE NRC STAFF REVIEW OF THE PEACH BOTTOM ATOMIC POWER STATION LICENSE RENEWAL APPLICATION AND A REQUEST FOR ADDITIONAL INFORMATION On March 28, 2003, NRC staff and Exelon (the applicant) representatives participated in a conference call to discuss a request for additional information (RAI) concerning financial qualifications (Enclosure 1) to complete the staffs review of whether the applicants financial qualifications meet the applicable requirements of 10 CFR 50.33(f), Contents of Applications; General Information. Enclosure 2 is a list of the call participants.
The RAI (Enclosure 1) was sent to the applicant by electronic mail prior to the conference call.
After the conference call, the staff revised the RAIs (Enclosure 3). The RAIs were revised to ensure the questions focused on the information needed to meet the requirements of 10 CFR 50.33(f). An explanation for the changes based on statements made by the applicant during the call is also provided in Enclosure 1. The applicant agreed to respond in writing to the RAIs in Enclosure 3. In addition, the NRC staff requests that the applicant review the summaries in Enclosure 1, and provide clarifications to any mischaracterizations of positions given with their responses to the RAIs in Enclosure 3.
/RA/
David L. Solorio, Senior Reactor Engineer License Renewal Section License Renewal and Environmental Impacts Program Division of Regulatory Improvement Programs Office of Nuclear Reactor Regulation Docket Nos.: 50-277 and 50-278
Enclosures:
- 1. Requests for Additional Information
- 2. List of Call Participants
- 3. Requests for Additional Information cc w/encl: See next page
LICENSEE:
Exelon Generation Company, LLC (Exelon)
FACILITY:
Peach Bottom Atomic Power Station, Units 2 and 3
SUBJECT:
CONFERENCE CALL
SUMMARY
WITH EXELON CORPORATION TO DISCUSS MATTERS RELATED TO THE NRC STAFF REVIEW OF THE PEACH BOTTOM ATOMIC POWER STATION (PBAPS) LICENSE RENEWAL APPLICATION AND A REQUEST FOR ADDITIONAL INFORMATION On March 28, 2003, NRC staff and Exelon (the applicant) representatives participated in a conference call to discuss a request for additional information (RAI) concerning financial qualifications (Enclosure 1) to complete the staffs review of whether the applicants financial qualifications meet the applicable requirements of 10 CFR 50.33(f), Contents of Applications; General Information. Enclosure 2 is a list of the call participants.
The RAI (Enclosure 1) was sent to the applicant by electronic mail prior to the conference call.
After the conference call, the staff revised the RAIs (Enclosure 3). The RAIs were revised to ensure the questions focused on the information needed to meet the requirements of 10 CFR 50.33(f). An explanation for the changes based on statements made by the applicant during the call is also provided in Enclosure 1. The applicant agreed to respond in writing to the RAIs in Enclosure 3. In addition, the NRC staff requests that the applicant review the summaries in Enclosure 1, and provide clarifications to any mischaracterizations of positions given with their responses to the RAIs in Enclosure 3.
/RA/
David L. Solorio, Senior Reactor Engineer License Renewal Section License Renewal and Environmental Impacts Program Division of Regulatory Improvement Programs Office of Nuclear Reactor Regulation Docket Nos.: 50-277 and 50-278
Enclosures:
- 1. Requests for Additional Information
- 2. List of Call Participants
- 3. Requests for Additional Information cc w/encl: See next page DISTRIBUTION:
See next page
- See previous concurrence Document name: C:\\ORPCheckout\\FileNET\\ML030970779.wpd OFFICE PM:RLEP:DRIP LA:DRIP SC:RLEP:DRIP NAME DSolorio*
EHylton*
SLee DATE 03/31/03 03/31/03 4/3/03 OFFICIAL RECORD COPY
DISTRIBUTION: Summary of Telecon with Exelon Re: PBAPS RAIs, Dated: April 3, 2003 HARD COPY RLEP R/F A.Henry D.Solorio E-MAIL:
PUBLIC W. Borchardt D. Matthews F. Gillespie RidsNrrDe R. Barrett E. Imbro G. Bagchi K. Manoly W. Bateman J. Calvo C. Holden P. Shemanski H. Nieh G. Holahan H. Walker S. Black B. Boger D. Thatcher G. Galletti C. Li J. Moore R. Hoefling R. Weisman M. Mayfield A. Murphy W. McDowell S. Smith (srs3)
T. Kobetz C. Munson RLEP Staff J. Boska D. Lew M. Modes REQUEST FOR ADDITIONAL INFORMATION LICENSE RENEWAL APPLICATION PEACH BOTTOM ATOMIC POWER STATION (PBAPS) UNITS 2 and 3 DOCKET NOS. 50-277 and 50-278 Financial Qualifications Pursuant to 10 CFR 50.33(f)(2), the applicant shall submit estimates for total annual operating costs for each of the first five years of operation of the facility. Accordingly, the following are to be provided:
1.
The Projected Income Statement from 2003 through 2008 for Peach Bottom Atomic Power Station, Units 2 and 3. Identify the revenues and the costs breakdown by major line item.
RESOLUTION:
Exelon stated that it does not have the revenues for each individual plant because Exelon pools all of its generation production. However, Exelon can provide the required operating expenses for PBAPS, Units 2 and 3. Therefore, the staff is forwarding question 1 in Enclosure 3.
2.
Supporting Key Assumptions to include total generation (Gwh), total market sales (Gwh) average market price ($/MWh), total generation revenues, and assumed nuclear capacity factor for each of the forecasted period. Also, provide explanations as to the basis for the assumed average market price and the assumed capacity factor.
RESOLUTION:
Since expenses and revenue for the entire corporation were provided, the above request is not necessary for PBAPS Units 2 and 3. However, Exelon can provide the capacity factor.
Therefore, the staff is forwarding question 2 in Enclosure 3.
3.
The latest FERC Form 1 report for each unit.
RESOLUTION:
Exelon stated that because they are not regulated by FERC they are not required to file FERC Form 1. Therefore, the staff does not need to forward this question.
In addition, responses to specific questions as described below are requested.
Questions for Exelon 1.
In the latest Projected Income Statement dated January 14, 2003, regarding Total Operating Expenses, clarify whether these costs are for the nuclear facilities only or do they include the operating costs of fossil, hydro, and any other generating assets?
RESOLUTION:
Exelon stated that it is for all of its generating assets. The staff requests Exelon confirm this in writing.
2.
By application dated July 2, 2001, and revised on August 23, 2001, Exelon stated that, this Projected Income Statement provides the estimated total annual operating costs for the nuclear facilities owned by Exelon.
A.
Please verify that the Total Operating Expenses line item on the Projected Income Statement includes the costs for nuclear facilities only and does not include the operating cost of fossil, hydro and any other generating assets.
RESOLUTION:
The response to this question is bounded by the previous question. Therefore, a response to this question is not needed as long as the staff receives a response to the previous question.
B.
Provide information that demonstrates Exelons statement that, The projected revenues from the sales of electricity from the nuclear units alone are expected to provide sufficient income to cover the total operating costs of Exelons nuclear units.
RESOLUTION:
Exelon acknowledged that their submission did not break down nuclear revenue and costs. However, the staff can make a finding from company wide information submitted.
C.
Provide information that demonstrates the following statement, Exelons projected assets and revenue streams are more than sufficient to cover its share of costs that might be associated with a six-month shutdown at one or more of the nuclear units owned by Exelon. Indicate how many more nuclear units that can be shut down for six months and be sufficiently supported by Exelons projected assets and revenue streams.
RESOLUTION:
Exelon was not able to provide the basis for this statement during the conference call. However, the staff determined that a response was not needed to complete the review because this statement is not required by 10 CFR 50.33.
Therefore, a response to this question is no longer requested.
Question for PSEG 1.
Explain the basis for the assumed Nuclear Capacity Factor for each of the projected periods.
RESOLUTION:
Exelon cannot answer for PSEG. The staff will contact PSEG directly.
List of Call Participants for Conference Call on March 28, 2003 Attendees Affiliation Al Fulvio EXELON Alvin Henry NRC Dave Helker EXELON Steve Hom NRC Erach Pattel EXELON Fred Polaski EXELON David Solorio NRC Chutima Taylor NRC REQUEST FOR ADDITIONAL INFORMATION LICENSE RENEWAL APPLICATION PEACH BOTTOM ATOMIC POWER STATION UNITS 2 and 3 DOCKET NOS. 50-277 and 50-278 Financial Qualifications Pursuant to 10 CFR 50.33(f)(2), the applicant shall submit estimates for total annual operating costs for each of the first five years of operation of the facility. Accordingly, the following are to be provided:
1.
Exelon is requested to provide the annual projected costs for the Peach Bottom Atomic Power Station, Units 2 and 3 (the facility), for five years beginning with 2003.
2.
Exelon is requested to provide the annual capacity factor for each unit for the next five years beginning with 2003.
In addition, confirmation in writing is requested for the following.
Questions for Exelon 1.
In the latest Projected Income Statement dated January 14, 2003, regarding Total Operating Expenses, clarify whether these costs are for the nuclear facilities only or do they include the operating costs of fossil, hydro, and any other generating assets?
Peach Bottom Atomic Power Station, Units 2 and 3 cc:
Vice President, General Counsel and Secretary Exelon Generation Company, LLC 300 Exelon Way Kennett Square, PA 19348 Site Vice President Peach Bottom Atomic Power Station Exelon Generation Company, LLC 1848 Lay Road Delta, PA 17314 Plant Manager Peach Bottom Atomic Power Station Exelon Generation Company, LLC 1848 Lay Road Delta, PA 17314 Regulatory Assurance Manager Peach Bottom Atomic Power Station Exelon Generation Company, LLC 1848 Lay Road Delta, PA 17314 Resident Inspector U.S. Nuclear Regulatory Commission Peach Bottom Atomic Power Station P.O. Box 399 Delta, PA 17314 Regional Administrator, Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 Mr. Roland Fletcher Department of Environment Radiological Health Program 1800 Washington Blvd.
Baltimore, MD 21230 Correspondence Control Desk Exelon Generation Company, LLC 200 Exelon Way, KSA 1-N-1 Kennett Square, PA 19348 Rich Janati, Chief Division of Nuclear Safety Bureau of Radiation Protection Department of Environmental Protection Rachel Carson State Office Building P.O. Box 8469 Harrisburg, PA 17105-8469 Board of Supervisors Peach Bottom Township 545 Broad Street Ext.
Delta, PA 17314-9203 Mr. Richard McLean Power Plant and Environmental Review Division Department of Natural Resources B-3, Tawes State Office Building Annapolis, MD 21401 Dr. Judith Johnsrud National Energy Committee Sierra Club 433 Orlando Avenue State College, PA 16803 Manager-Financial Control & Co-Owner Affairs Public Service Electric and Gas Company P.O. Box 236 Hancocks Bridge, NJ 08038-0236 Manager Licensing-Limerick and Peach Bottom Exelon Generation Company, LLC Nuclear Group Headquarters Correspondence Control P.O. Box 160 Kennett Square, PA 19348 Mr. Alan P. Nelson Nuclear Energy Institute 1776 I Street, NW., Suite 400 Washington, DC 20006-3708 Peach Bottom Atomic Power Station, Units 2 and 3 cc:
Director - Licensing Mid-Atlantic Regional Operating Group Exelon Generation Company, LLC Nuclear Group Headquarters Correspondence Control P.O. Box 160 Kennett Square, PA 19348 Vice President-Licensing and Regulatory Affairs Exelon Generation Company, LLC 4300 Winfield Road Warrenville, IL 60555 Senior Vice President Mid-Atlantic Regional Operating Group Exelon Generation Company, LLC 200 Exelon Way, KSA 3-N Kennett Square, PA 19348 Senior Vice President, Nuclear Services Exelon Generation Company, LLC 4300 Winfield Road Warrenville, IL 60555 Vice President, Mid-Atlantic Operations Support Exelon Generation Company, LLC 200 Exelon Way, KSA 3-N Kennett Square, PA 19348 Manager License Renewal Exelon Generation Company, LLC 200 Exelon Way Kennett Square, PA 19348 Mr. Oliver D. Kingsley, President Exelon Nuclear Exelon Generation Company, LLC 200 Exelon Way, KSA 3-E Kennett Square, PA 19348 Public Service Commission of Maryland Engineering Division Chief Engineer 6 St. Paul Center Baltimore, MD 21202-6806 Chief Operating Officer Exelon Generation Company, LLC 4300 Winfield Road Warrenville, IL 6 0555