ML033030563

Enclosure 1, Hatch, Units 1 and 2 - Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10CFR50.75(f)(1)

ML033030563
Person / Time
Site:	Hatch
Issue date:	10/15/2003
From:	Harreld C Georgia Power Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML033030563 (3)

Text

ENCLOSURE 1 C.B.(Mike) Harreld Bin 10240 Executive Vice President and 241 Ralph McGill Boulevard NE Chief Financial Officer Atlanta, Georgia 30308-3374 Tel 404.506.5710 Fax 404.506.5712 GEORGIA A POWER October 15, 2003 ASOUTHERN COMPANY Docket Nos.: 50-321 50-366 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555-0001 Edwin 1. Hatch Nuclear Plant Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10 CFR 50.75(f)(1))

Ladies and Gentlemen:

Pursuant to 10 CFR 50.75(f)(1), each power reactor licensee is required to report to the NRC the status of its decommissioning funding for each reactor or part of each reactor it owns on a calendar year basis, beginning March 31, 1999, and every two years thereafter.

Accordingly, Southern Nuclear Operating Company (Southern Nuclear) holds operating licenses DPR-7 and NPF-5 for the Edwin I. Hatch Nuclear Plant and submitted the required information on behalf of Georgia Power Company by letter NL-03-0693, dated March 26, 2003. Subsequent to submittal of the required information, Georgia Power Company identified an error in the information provided to the NRC in Enclosure I of Southern Nuclear letter NL-03-0693. Specifically, the rate of escalation in decommissioning costs (Item 4a) was incorrectly stated to be 3.6% for Edwin I. Hatch Nuclear Plant Unit I and Unit 2. The correct rate of escalation in decommissioning costs applicable to Edwin 1. Hatch Nuclear Plant Unit I and Unit 2 is 4.7%, consistent with Georgia Public Service Commission Docket 14000-U dated December 20, 2001.

Southern Nuclear received a request for additional information from the NRC on September 10, 2003 regarding its March 26, 2003 submittal to the NRC regarding financial assurance for decommissioning. Specifically, the NRC requested the following:

a In regards to the BiennialDecommissioning Trust Reportsfiled by Southern Company on behalfof the licenses it owns under the NRC, staffrequires clarificationin theform of a declarativestatement as to the Real Rate of Interest used by Southern Company, in its forecast offuture payments to the individual Decommissioning Trust Fundsfor each license. Although staff is able to imply the Real Rate of Interest by taking the nominal rate of interest andsubtracting from it the tax rate and escalation,it has been determined that a declaring statement be made by Southern Company is necessary to comply s'ith 10 CFR 50.75W (1).

U. S. Nuclear Regulatory Commission Page 2

b. If the Real Rate of Interest is greaterthan 2y, then an accompanyingstatement indicatingthat a higherReal Rate of Interest is authorizedby the licensees regulatoryauthoritymust be made (i.e., state public utility commission.)

The real rate of interest used by Georgia Power Company for the Edwin 1.Hatch Nuclear Plant Decommissioning Trust Fund, based on the corrected information provided above, is 1.8% for both Unit I and Unit 2 as approved by the Georgia Public Service Commission (Docket 14000-U, December 20, 2001).

This letter contains no NRC commitments. If you have any questions, please advise.

Sincerely,