ML033070202

LTR-03-0702 - Follow-up to Oct. 7, 2003 Meeting Regarding Decommissioning Activities at Yankee Atomic Power Station

ML033070202
Person / Time
Site:	Yankee Rowe
Issue date:	10/22/2002
From:	Kacich R Yankee Atomic Electric Co
To:	Diaz N NRC/Chairman
References
-RFPFR, LTR-03-0702
Download: ML033070202 (3)

Text

OFFICE OF THE SECRETARY CORRESPONDENCE CONTROL TICKET Date Printed: Oct30, 2003 15:29 PAPER NUMBER: LTR-03-0702 LOGGING DATE: 10130/2003 ACTION OFFICE: EDO AUTHOR: Richard Kacich AFFILIATION: YAEC ADDRESSEE: Nils Diaz

SUBJECT:

Follow up to October 7, 2003 meeting regarding decommissioning activities at the Yankee nuclear power station ACTION: Appropriate DISTRIBUTION: RF LETTER DATE: 10/2212003 ACKNOWLEDGED No SPECIAL HANDLING: Made public via SECY-DPC NOTES:

FILE LOCATION: ADAMS DATE DUE: DATE SIGNED:

Telephone (508) 721-3001 Facsimile (508) 721-7743 YANKEE ATOMIC ELECTRIC COMPANY Cellular (860) 573-1828 Suite 200, 19 Midstate Drive, Auburn, Massachusetts 01501 KE_

RICHARD M. KACICH PRESIDENT October 22, 2003 The Honorable Nils J. Diaz, Chairman U.S. Nuclear Regulatory Commission Washington, D.C. 20555

Dear Chairman Diaz:

It was a pleasure meeting with you on October 7, 2003. We appreciate that you took the time to discuss our decommissioning activities at the Yankee Nuclear Power Station.

As a follow-up to our conversation, you asked us to provide the potential savings in insurance premiums if our pending exemption request to lower our offsite liability coverage from $100 million to $25 million was approved. We currently pay just under

$150,000 per year for this coverage. A reduction to $25 million will realize a premium savings of approximately 50% or $75,000 per year. We currently anticipate the spent fuel wvill be stored on-site for the next 20 years, until DOE removes the fuel to a federal storage facility. This time frame equates to a $1.5 million dollar savings in today's dollars assuming no increase in premiums. When we factor in increases in insurance premiums, a conservative estimate is that we would save over $3 million in premiums over the next 20 years. As you can see, this is a significant savings for a spent fuel storage facility that has no offsite consequences under any reasonably credible accident scenario.

During our briefing, we mentioned that we expect to spend $20 million for future radioactive waste disposal costs (shipping and burial) to complete decommissioning.

You asked what we had spent to date, and the answer is about that same order of magnitude, which would bring the anticipated total project costs to about $40 million.

We appreciate the NRC Staff efforts on our pending insurance exemption and our integrated approach to offsite emergency response. We look forward to working with the Staff to demonstrate that the NRC can review and approve a License Termination Plan within 12 months, such that we can successfully complete the decommissioning and license termination process on terms consistent with our current plans. In this regard, it was reassuring to hear you say during the morning public session that the NRC is resp'onsive to licensee decommissioning plans. We of course recognize our obligation for timely, thorough, and compliant performance in all aspects of our licensed responsibilities.

The Honorable Nils J. Diaz October 22, 2003 Page 2 Again, thank you for allowing us to brief you and your staff on our decommissioning activities at the Yankee station. We appreciate your time and interest.

Sincerely, Richard M. Kacich President DC:328420.1