ML033030581
| ML033030581 | |
| Person / Time | |
|---|---|
| Site: | Hatch  |
| Issue date: | 10/16/2003 |
| From: | Cope D Dalton Utilities |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML033030581 (3) | |
Text
ENCLOSURE 4
Dalton UTI L ITI E S see the light October 16, 2003 Docket Nos:
50-321 50-366 U. S. Nuclear Regulatory Commission ATTN: Document Control Desk Washington, D. C. 20555-0001 Edwin I. 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(0(1), each power reactor licensee is required to report to the NRC the status of its decommissioning fiunding 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 The Board of Water, Light and Sinking Fund Commission of the City of Dalton, Georgia, operating as Dalton Utilities, by letter dated March 26, 2003.
Subsequently, Southern Nuclear received the following request for additional information from the NRC on September 10, 2003.
- a. In regards to the Biennial Decommissioning Tnist Reports filed by Southern Company on behalf of the licenses it owns under the NRC, staff requires clarification in the form of a declarative statement as to the Real Rate of Interest used by Southern Company, in itsforecast offiuture payments to the individual Decommissioning Trust Funds for each license.
Although staff is able to imply the Real Rate of Interest by taking the nominal rate of interest and sutbtractingfrom it the tax rate and escalation, it has been determined that a declaring statement be made by Southern Company is necessary to comply with 10 CER 50. 75(f)(1).
- b. If the Real Rate of Interest is greater than 2/o, thenr an accompanying statement indicating that a higher Real Rate of Interest is authorized by the licensees regulatory authority must be made (i.e., state public utility commission).
1200 V.D. Parrott, Jr. Parkway P.O. Box 869 Dalton, GA 30722-0869 706.278.1313 T 706.278.7230 F
U. S. Nuclear Regulatory Commission Log:
Page 2 The real rate of interest used by Dalton Utilities for the Edwin I. Hatch Nuclear Plant Decommissioning Trust Fund is 1.8% for both Unit 1 and Unit 2. The real rate of return is based on an escalation rate of 4.7% for the decommissioning costs and an interest rate of 6.5% applied to the decommissioning trust fund.
This letter contains no NRC commitments. If you have any questions, please advise.
Sincerely, PD a
Cpe President and CEO