ML033030581

Enclosure 4, Dalton Utilities - Financial Assurance Requirements for Decommissioning Nuclear Power Reactors (10CFR50.75(f)(1)

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 regardsto the BiennialDecommissioning Tnist Reportsfiled by Southern Company on behalf of 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 itsforecastoffiuture payments to the individualDecommissioning Trust Fundsfor each license.

Although staff is able to imply the Real Rate of Interest by taking the nominal rate of interestand sutbtractingfromit 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 greaterthan 2/o, thenr an accompanying statement indicatingthat a higherReal Rate of Interest is authorizedby the licensees regulatoryauthority 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