ML041200736
| ML041200736 | |
| Person / Time | |
|---|---|
| Site: | Millstone  |
| Issue date: | 05/05/2004 |
| From: | Nerses V NRC/NRR/DLPM/LPD1 |
| To: | Christian D Dominion Nuclear Connecticut |
| Nerses V, NRR//DLPM, 415-1484 | |
| Shared Package | |
| ML041200745 | List: |
| References | |
| TAC MC0999, TAC MC1000, TAC MC1001 | |
| Download: ML041200736 (8) | |
Text
May 5, 2004 Mr. David A. Christian Sr. Vice President and Chief Nuclear Officer Dominion Nuclear Connecticut, Inc.
Innsbrook Technical Center 5000 Dominion Boulevard Glen Allen, VA 23060-6711
SUBJECT:
MILLSTONE POWER STATION, UNIT NOS. 1, 2 AND 3, CORRECTION TO SAFETY EVALUATION ASSOCIATED WITH ISSUED ORDER (TAC NOS.
Dear Mr. Christian:
By letter dated April 2, 2004, the Commission issued an Order approving the indirect transfer of control of the licenses held by Dominion Nuclear Connecticut, Inc. (Facility Operating License Nos. DPR-21, DPR-65, and NPF-49 for the Millstone Power Station, Unit Nos. 1, 2, and 3, respectively) in response to your application dated October 8, 2003 and its supplement dated November 7, 2003.
Subsequent to the mailing of this order, errors were identified in the Safety Evaluation (SE) issued with this order. Therefore, replacement pages of the SE are enclosed. We apologize for any inconvenience this may have caused. If you have any question please contact me at (301) 415-1484.
Sincerely,
/RA/
Victor Nerses, Senior Project Manager, Section 2 Project Directorate I Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-245, 50-336, and 50-423
Enclosures:
Corrected Safety Evaluation Pages cc w/encls: See next page
May 5, 2004 Mr. David A. Christian Sr. Vice President and Chief Nuclear Officer Dominion Nuclear Connecticut, Inc.
Innsbrook Technical Center 5000 Dominion Boulevard Glen Allen, VA 23060-6711
SUBJECT:
MILLSTONE POWER STATION, UNIT NOS. 1, 2 AND 3, CORRECTION TO SAFETY EVALUATION ASSOCIATED WITH ISSUED ORDER (TAC NOS.
Dear Mr. Christian:
By letter dated April 2, 2004, the Commission issued an Order approving the indirect transfer of control of the licenses held by Dominion Nuclear Connecticut, Inc. (Facility Operating License Nos. DPR-21, DPR-65, and NPF-49 for the Millstone Power Station, Unit Nos. 1, 2, and 3, respectively) in response to your application dated October 8, 2003 and its supplement dated November 7, 2003.
Subsequent to the mailing of this order, errors were identified in the Safety Evaluation (SE) issued with this order. Therefore, replacement pages of the SE are enclosed. We apologize for any inconvenience this may have caused. If you have any question please contact me at (301) 415-1484.
Sincerely,
/RA/
Victor Nerses, Senior Project Manager, Section 2 Project Directorate I Division of Licensing Project Management Office of Nuclear Reactor Regulation Docket Nos. 50-245, 50-336, and 50-423
Enclosures:
Corrected Safety Evaluation Pages cc w/encls: See next page DISTRIBUTION:
CRaynor CHolden PUBLIC DRoberts MDusaniwskyj OGC JTrapp, RI ACRS WBeckner SDembek PDI-2 R/F GHill (2)
VNerses DHolland ADAMS Accession Numbers: Letter - ML041200736; Proprietary SE - ML041200748; Package - ML041200745
- See previous concurrence.
OFFICE PDI-2/PM PDI-2/LA RPRP/SC PDIV-2/PM PDI-2/SC NAME VNerses CRaynor BThomas DHolland JClifford DATE 5/3/04 5/3/04 5/5/04 5/3/04 5/5/04 OFFICIAL RECORD COPY
CONTAINS NON-PROPRIETARY INFORMATION Corrected by letter dated May 5, 2004 SAFETY EVALUATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION REGARDING INDIRECT TRANSFER OF CONTROL OF LICENSES RELATED TO CORPORATE RESTRUCTURING OF PARENT COMPANIES OF DOMINION NUCLEAR CONNECTICUT, INC.
MILLSTONE POWER STATION, UNIT NOS. 1, 2 AND 3 DOCKET NOS. 50-245, 50-336 AND 50-423
1.0 INTRODUCTION
By application dated October 8, 2003, as supplemented by letter dated November 7, 2003, Dominion Nuclear Connecticut, Inc. (DNC or the licensee) requested that the U.S. Nuclear Regulatory Commission (NRC or the Commission) consent to the indirect transfer of control of the licenses held by DNC [Facility Operating License Nos. DPR-21, DPR-65 and NPF-49 for the Millstone Power Station, Unit Nos. 1, 2 and 3 (Millstone Units), respectively] to the extent that this internal corporate realignment might be considered an indirect transfer of control of the licenses held by DNC. DNC is a 100% owner of Millstone, Unit Nos. 1 and 2 and a 93.47%
l owner of Millstone, Unit No. 3. The requested approval relates to proposed changes to certain l
intermediate subsidiaries of Dominion Resources, Inc. (DRI) affecting the chain of ownership between DRI and DNC, through a corporate restructuring, which is detailed below. The supplement dated November 7, 2003, provided additional information that clarified the application, and did not expand the scope of the application as originally noticed.
The proposed changes reflect an internal realignment and consolidation of energy market functions within the Dominion companies. The proposed corporate restructuring involves the dissolution and creation of certain intermediate subsidiaries of DRI affecting the chain of ownership of DNC. DNC will remain an indirect, wholly owned subsidiary of DRI.
2.0 BACKGROUND
An earlier application, dated August 31, 2000, requested NRC consent under Title 10 of the Code of Federal Regulations (10 CFR) Section 50.80, to the direct transfer of the Millstone Units from Northeast Nuclear Energy Company, et al., to DNC.
CONTAINS NON-PROPRIETARY INFORMATION DNCs
(
SUMMARY
OF) PROJECTED INCOME STATEMENT (In $ millions)
FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 Total Revenue:
Total Operating Expenses:
Income Before Taxes & Interest:
Total Taxes & Interest:
Net Income:
The NRC staff has chosen to test the sensitivity of the financial information in the above Projected Income Statement by analyzing two scenarios that change the assumptions for revenue. The staff notes that if prices per megawatt hour were to drop by an average of 10.0%, the average net effect on the five years of Net Income, is a drop from the projected million to a possible $
million. Similarly, if an average historical capacity factor of 87% is assumed instead of the projected average capacity factor of 91%, then the average net effect on the five years of Net Income is a drop to a possible $
million. The NRC staff considers that the Net Income under each of the two scenarios is still sufficiently high to provide reasonable assurance of adequate funding.
The NRC staff finds that DNCs Projected Income Statement shows that the anticipated revenues from sales of energy and capacity from the Millstone Units provide reasonable assurance of an adequate source of funds to meet DNCs anticipated expenses during the five-year period covered by the projections. The NRC staff finds that no further financial qualifications analysis or review is necessary.
Therefore, on the basis of the above information, the NRC staff has determined that DNC has met the financial qualifications requirements for a non-utility, pursuant to 10 CFR 50.33(f).
The NRC staff additionally notes that under the August 31, 2000, application DRI entered into l
an agreement with DNC to make funding of up to $150 million available to DNC to provide added assurance that DNC will have sufficient funds available to meet its operating expenses for the Millstone Units. Under the terms of the agreement, DNC has the right to obtain such funds from Retail as DNC determines are necessary to protect public health and safety, meet NRC requirements, meet ongoing operational expenses, or to maintain the Millstone Units
Millstone Power Station, Unit Nos. 1, 2 and 3 cc:
Lillian M. Cuoco, Esquire Senior Counsel Dominion Resources Services, Inc.
Rope Ferry Road Waterford, CT 06385 Edward L. Wilds, Jr., Ph.D.
Director, Division of Radiation Department of Environmental Protection 79 Elm Street Hartford, CT 06106-5127 Regional Administrator, Region I U.S. Nuclear Regulatory Commission 475 Allendale Road King of Prussia, PA 19406 First Selectmen Town of Waterford 15 Rope Ferry Road Waterford, CT 06385 Mr. W. R. Matthews Senior Vice President - Nuclear Operations and Chief Nuclear Officer Dominion Nuclear Connecticut, Inc.
Rope Ferry Road Waterford, CT 06385 Charles Brinkman, Director Washington Operations Nuclear Services Westinghouse Electric Company 12300 Twinbrook Pkwy, Suite 330 Rockville, MD 20852 Senior Resident Inspector Millstone Power Station c/o U.S. Nuclear Regulatory Commission P. O. Box 513 Niantic, CT 06357 Mr. P. J. Parulis Manager - Nuclear Oversight Dominion Nuclear Connecticut, Inc.
Rope Ferry Road Waterford, CT 06385 Mr. John Markowicz Co-Chair Nuclear Energy Advisory Council 9 Susan Terrace Waterford, CT 06385 Ms. Nancy Burton 147 Cross Highway Redding Ridge, CT 00870 Ms. Nancy Burton, Esquire 147 Cross Highway Redding Ridge, CT 06876 Mr. G. D. Hicks, Director Nuclear Station Safety and Licensing Dominion Nuclear Connecticut, Inc.
Rope Ferry Road Waterford, CT 06385 Mr. Evan W. Woollacott Co-Chair Nuclear Energy Advisory Council 128 Terrys Plain Road Simsbury, CT 06070 Mr. William D. Meinert Nuclear Engineer Massachusetts Municipal Wholesale Electric Company P.O. Box 426 Ludlow, MA 01056 Mr. David W. Dodson Licensing Supervisor Dominion Nuclear Connecticut, Inc.
Roper Ferry Road Waterford, CT 06385
Millstone Power Station, Unit Nos. 1, 2 and 3 cc:
Mr. S. E. Scace Assistant to the Site Vice President Dominion Nuclear Connecticut, Inc.
Rope Ferry Road Waterford, CT 06385 Mr. M. J. Wilson Manager - Nuclear Training Dominion Nuclear Connecticut, Inc.
Rope Ferry Road Waterford, CT 06385 Mr. A. J. Jordan, Jr.
Director - Nuclear Engineering Dominion Nuclear Connecticut, Inc.
Rope Ferry Road Waterford, CT 06385 Mr. S. P. Sarver Director - Nuclear Station Operations and Maintenance Dominion Nuclear Connecticut, Inc.
Rope Ferry Road Waterford, CT 06385 Mr. J. Alan Price Site Vice President Dominion Nuclear Connecticut, Inc.
Rope Ferry Road Waterford, CT 06385 Mr. Chris L. Funderburk Director, Nuclear Licensing and Operations Support Dominion Resources Services, Inc.
Innsbrook Technical Center 5000 Dominion Boulevard Glen Allen, VA 23060-6711 Mr. David A. Christian Sr. Vice President and Chief Nuclear Officer Dominion Nuclear Connecticut, Inc.
Innsbrook Technical Center 5000 Dominion Boulevard Glen Allen, VA 23060-6711 Mr. Allan Johanson, Assistant Director Office of Policy and Management Policy Development & Planning Division 450 Capitol Avenue - MS# 52ERN P.O. Box 341441 Hartford, CT 06134-1441 Attorney Nicholas J. Scobbo, Jr.
Ferriter, Scobbo, Caruso, Rodophele, PC 75 State Street, 7th Floor Boston, MA 02108-1807 Ernest C. Hadley, Esquire 1040 B Main Street P.O. Box 549 West Wareham, MA 02576 Citizens Regulatory Commission ATTN: Ms. Susan Perry Luxton 180 Great Neck Road Waterford, CT 06385 Deborah Katz, President Citizens Awareness Network P.O. Box 83 Shelburne Falls, MA 03170 Mr. John Buckingham Department of Public Utility Control Electric Unit 10 Liberty Square New Britain, CT 06051 Mr. J. Alan Price Site Vice President Dominion Nuclear Connecticut, Inc.
Rope Ferry Road Waterford, CT 06385