ML033300473
| ML033300473 | |
| Person / Time | |
|---|---|
| Site: | Oyster Creek, Clinton, Crane |
| Issue date: | 12/15/2003 |
| From: | Skay D NRC/NRR/DLPM/LPD1 |
| To: | Jamie Benjamin Exelon Generation Co |
| Skay D, NRR/DLPM, 415-1322 | |
| References | |
| TAC MC1075, TAC MC1076, TAC MC1077 | |
| Download: ML033300473 (10) | |
Text
December 15, 2003 Mr. Jeffrey A. Benjamin, Vice President Licensing and Regulatory Affairs Exelon Generation Company, LLC 4300 Winfield Road Warrenville, IL 60555
SUBJECT:
SUBSTITUTION OF CONTINGENCY FUNDING ARRANGEMENTS FOR AMERGEN ENERGY COMPANY, LLC, PROVIDED BY EXELON GENERATION COMPANY AND BRITISH ENERGY PLC FOR OPERATIONAL PURPOSES, CLINTON POWER STATION, UNIT NO. 1, OYSTER CREEK NUCLEAR GENERATING STATION, AND THREE MILE ISLAND NUCLEAR STATION, UNIT 1 (TAC NOS. MC1075, MC1076, AND MC1077)
Dear Mr. Benjamin:
By letter dated October 31, 2003, British Energy plc, (British Energy) and Exelon Generation Company, LLC (Exelon), requested that the United States Nuclear Regulatory Commission (NRC) provide written consent to the substitution of a proposed single funding agreement from Exelon, for the current funding arrangements provided by British Energy and Exelon to assure the availability of up to $200 million in funds for operational purposes to AmerGen Energy Company, LLC (AmerGen).
In an agreement dated April 3, 2000, British Energy agreed to provide contingency funding to AmerGen in connection with the operation and maintenance of all of the nuclear reactors owned or to be acquired by AmerGen. These reactors include: Clinton Power Station, Unit No.
1, Oyster Creek Nuclear Generating Station, and Three Mile Island Nuclear Station, Unit 1.
Similarly, in an agreement dated January 12, 2001, Exelon agreed to provide funding to AmerGen under the same or similar terms and conditions as British Energy. These two agreements provided commitments for up to $100 million each; and therefore, AmerGen currently has a total of $200 million available as a contingency funding commitment from Exelon and British Energy. Under the terms of these agreements, NRC written consent is required prior to the discontinuance of these two agreements.
Exelon proposes to eliminate the British Energy agreement of $100 million and the current Exelon agreement of $100 million, and substitute a new Exelon agreement to AmerGen for
$200 million. AmerGen is the owner and operator for Clinton Power Station, Unit No. 1, Oyster Creek Nuclear Generating Station, and Three Mile Island Nuclear Station, Unit 1.
Exelon has entered into a purchasing agreement to buy the 50% non-controlling ownership interest in AmerGen that is indirectly owned by British Energy. Exelon will do so by purchasing 100% of the stock of British Energys indirectly wholly owned United States subsidiary, British Energy US Holdings Inc. (BEUSH). Following this transaction, Exelon will continue to control AmerGen, as the 100% owner of AmerGen both directly through its direct 50% ownership interest and indirectly (50%) through its ownership of BEUSH.
J. Benjamin 2
In connection with the proposed purchase by Exelon of the interest in AmerGen from British Energy, there will be no direct or indirect transfer of control of the licenses held by AmerGen pursuant to Title 10 of the Code of Federal Regulations (10 CFR), Part 50, Section 80 (10 CFR 50.80), because Exelon currently exercises control of AmerGen and will remain in control of AmerGen after the purchase agreement is consummated.
The NRC staff finds that Exelon is financially qualified to provide and fulfill a $200 million contingency commitment to AmerGen. The results of Exelons 2002 operations are provided in the Form 10-K Annual Report for 2002, filed with the Securities and Exchange Commission. It shows that Exelon had over $6.8 billion in operating revenue, an operating income of $509 million, and a net income of $400 million. In addition, the balance sheet reflects total assets of
$11 billion, which includes $1.8 billion in current assets and $4.8 billion in net property, plant and equipment. Finally, Exelons financial qualifications to provide the commitment is further demonstrated by its investment grade ratings: Moodys Baa1, Fitch BBB+, and Standard &
Poors A-.
In consideration of the above, the NRC hereby provides its consent to the discontinuation and revocation of the current funding arrangements provided by British Energy and Exelon and the substitution of a single funding agreement from Exelon providing for the availability of $200 million in funds to AmerGen, under the terms and conditions in that funding agreement, for the facilities listed above.
Sincerely,
/RA/
Donna M. Skay, Senior Project Manager Project Directorate I-1 Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-461, 50-219, and 50-289 cc: See next page
- Input provided, no major changes
- See previous concurrence OFFICE PM:LPDI-1 LA:LPDI-1 SC:RPRP OGC SC:LPDI-1 NAME DSkay CRaynor forMOBrien BThomas*
CMarco RLaufer DATE 12/15/03 12 /15/03 11/21/03 12/15/03 12 /15/03
Clinton Power Station, Unit 1 cc:
Senior Vice President - Nuclear Services AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Vice President Operations Support AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Vice President - Licensing and Regulatory Affairs AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Manager Licensing - Clinton and LaSalle AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Regulatory Assurance Manager - Clinton AmerGen Energy Company, LLC Clinton Power Station RR3, Box 228 Clinton, IL 61727-9351 Director Licensing AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Document Control Desk-Licensing AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Site Vice President - Clinton Power Station AmerGen Energy Company, LLC Clinton Power Station RR 3, Box 228 Clinton, IL 61727-9351 Clinton Power Station Plant Manager AmerGen Energy Company, LLC Clinton Power Station RR 3, Box 228 Clinton, IL 61727-9351 Resident Inspector U.S. Nuclear Regulatory Commission RR #3, Box 229A Clinton, IL 61727 Chief Operating Officer AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Regional Administrator, Region III U.S. Nuclear Regulatory Commission 801 Warrenville Road Lisle, IL 60532-4351 Senior Counsel, Nuclear AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 R. T. Hill Licensing Services Manager General Electric Company 175 Curtner Avenue, M/C 481 San Jose, CA 95125 Chairman of DeWitt County c/o County Clerks Office DeWitt County Courthouse Clinton, IL 61727 Mr. John L. Skolds, Chairman and Chief Executive Officer AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, Illinois 60555 J. W. Blattner Project Manager Sargent & Lundy Engineers 55 East Monroe Street Chicago, IL 60603 Illinois Emergency Management Agency Division of Disaster Assistance &
Preparedness 110 East Adams Street Springfield, IL 62701-1109
Oyster Creek Nuclear Generating Station cc:
Chief Operating Officer AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Senior Vice President - Nuclear Services AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Site Vice President - Oyster Creek Generating Station AmerGen Energy Company, LLC P.O. Box 388 Forked River, NJ 08731 Vice President - Mid-Atlantic Operations AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 John E. Matthews, Esquire Morgan, Lewis, & Bockius LLP 1111 Pennsylvania Avenue, NW Washington, DC 20004 Kent Tosch, Chief New Jersey Department of Environmental Protection Bureau of Nuclear Engineering CN 415 Trenton, NJ 08625 Vice President - Licensing and Regulatory Affairs Exelon Generation Company, LLC 4300 Winfield Road Warrenville, IL 60555 Vice President - Operations Support AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 H. J. Miller Regional Administrator, Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406-1415 Mayor of Lacey Township 818 West Lacey Road Forked River, NJ 08731 Senior Resident Inspector U.S. Nuclear Regulatory Commission P.O. Box 445 Forked River, NJ 08731 Director Licensing AmerGen Energy Company, LLC Nuclear Group Headquarters P.O. Box 160 Kennett Square, PA 19348 Manager Licensing - Oyster Creek and Three Mile Island AmerGen Energy Company, LLC Nuclear Group Headquarters Correspondence Control P.O. Box 160 Kennett Square, PA 19348 Oyster Creek Generating Station Plant Manager AmerGen Energy Company, LLC P.O. Box 388 Forked River, NJ 08731 Regulatory Assurance Manager Oyster Creek AmerGen Energy Company, LLC P.O. Box 388 Forked River, NJ 08731 Vice President, General Counsel and Secretary AmerGen Energy Company, LLC 2301 Market Street, S23-1 Philadelphia, PA 19101 J. Rogge, Region I U.S. Nuclear Regulatory Commission
475 Allendale Road King of Prussia, PA 19406-1415 Correspondence Control Desk AmerGen Energy Company, LLC 200 Exelon Way, KSA 1-N-1 Kennett Square, PA 19348
Three Mile Island Nuclear Station, Unit 1 cc:
Site Vice President - Three Mile Island Nuclear Station, Unit 1 AmerGen Energy Company, LLC P. O. Box 480 Middletown, PA 17057 Senior Vice President Nuclear Services AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Vice President - Mid-Atlantic Operations Support AmerGen Energy Company, LLC 200 Exelon Way, KSA 3-N Kennett Square, PA 19348 Senior Vice President -
Mid Atlantic Regional Operating Group AmerGen Energy Company, LLC 200 Exelon Way, KSA 3-N Kennett Square, PA 19348 Vice President -
Licensing and Regulatory Affairs AmerGen Energy Company, LLC 4300 Winfield Road Warrenville, IL 60555 Regional Administrator Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 Chairman Board of County Commissioners of Dauphin County Dauphin County Courthouse Harrisburg, PA 17120 Chairman Board of Supervisors of Londonderry Township R.D. #1, Geyers Church Road Middletown, PA 17057 Senior Resident Inspector (TMI-1)
U.S. Nuclear Regulatory Commission P.O. Box 219 Middletown, PA 17057 Director - Licensing - MId-Atlantic Regional Operating Group AmerGen Energy Company, LLC Nuclear Group Headquarters Correspondence Control P.O. Box 160 Kennett Square, PA 19348 Rich Janati, Chief Division of Nuclear Safety Bureau of Radiation Protection Department of Environmental Protection Rachel Carson State Office Building P.O. Box 8469 Harrisburg, PA 17105-8469 Three Mile Island Nuclear Station, Unit 1 Plant Manager AmerGen Energy Company, LLC P. O. Box 480 Middletown, PA 17057 Regulatory Assurance Manager - Three Mile Island Nuclear Station, Unit 1 AmerGen Energy Company, LLC P.O. Box 480 Middletown, PA 17057 John F. Rogge, Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 Michael A. Schoppman Framatome ANP Suite 705 1911 North Ft. Myer Drive Rosslyn, VA 22209
Three Mile Island Nuclear Station, Unit 1 cc:
Vice President, General Counsel and Secretary AmerGen Energy Company, LLC 2301 Market Street, S23-1 Philadelphia, PA 19101 Dr. Judith Johnsrud National Energy Committee Sierra Club 433 Orlando Avenue State College, PA 16803 Eric Epstein TMI Alert 4100 Hillsdale Road Harrisburg, PA 17112 Correspondence Control Desk AmerGen Energy Company, LLC 200 Exelon Way, KSA 1-N Kennett Square, PA 19348 Manager Licensing - Oyster Creek and Three Mile Island AmerGen Energy Company, LLC Nuclear Group Headquarters Correspondence Control P.O. Box 160 Kennett Square, PA 19348