ML033030564

Enclosure 2, Municipal Electric Authority of Georgia - Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10CFR50.75(f)(1)

ML033030564
Person / Time
Site:	Hatch
Issue date:	10/03/2003
From:	Justin Fuller Municipal Electric Authority of Georgia
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML033030564 (3)

Text

ENCLOSURE 2 mIFnROw October 3, 2003 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 tile 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 1. Hatch Nuclear Plant and submitted the required information on behalf of the Municipal Electric Authority of Georgia by letter dated March 26, 2003. Subsequently, Southern Nuclear received tile following request for additional information from the NRC on September 10, 2003.

a. In regards to the Biennial Decommissioning Trust Reportsfiled by Southern Conmpanj' on behalfof the licenses it owns uAnder the NRC, staffrequires clarificationin theform of a declarativestatement as to the Real Rate ofInterest used by Southern Company in its forecast offitunre paymnents to the individualDeconmmissioniing Trust Findsfor each license. A4thoug/i staff is able to iniply the Real Rate ofInterest by taking the nominal rate of interest andsubtracting fromn it the tax rate andescalation, it has been determined that a declaringstatement be made by Southern Company is necessary to comply with 10 CFR 50. 75al)f).

b. If the Real Rate of Interest is greater than 2%, thien an accompanying statement indicatingthat a higherReal Rate of Interest is authorizedby the licensees regulatoryauthority must be made (i.e., state public utility commission.)

The real rate of interest used by the Municipal Electric Authority of Georgia for the Edwin 1. Hatch Nuclear Plant Decommissioning Trust Fluid is 2.1% for both Unit I and Unit 2 as approved by the Municipal Electric Authority of Georgia Board of Directors on November 14, 2002. MiunieipalI Electric- Anthlority uf Georgia 1470 lyingredlge Parkway NNV Atlanta, Georgia 303284686 1-1800-333-M l.AG '770-563-0300

U. S. Nuclear Regulatory Commission Log:

Page 2 IIIUEfOPOWER This letter contains no NRC commitments. If you lhave any questions, please advise.

Sincerely, James E. Fuller Sr. Vice President &

Chief Financial Officer