ML041200736

Correction to Safety Evaluation Associated with Issued Order

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: ML041200736
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.

MC0999, MC1000 AND MC1001)

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.

MC0999, MC1000 AND MC1001)

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

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 Corrected by letter dated May 5, 2004

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 CONTAINS NON-PROPRIETARY INFORMATION

Millstone Power Station, Unit Nos. 1, 2 and 3 cc:

Lillian M. Cuoco, Esquire Mr. P. J. Parulis Senior Counsel Manager - Nuclear Oversight Dominion Resources Services, Inc. Dominion Nuclear Connecticut, Inc.

Rope Ferry Road Rope Ferry Road Waterford, CT 06385 Waterford, CT 06385 Edward L. Wilds, Jr., Ph.D. Mr. John Markowicz Director, Division of Radiation Co-Chair Department of Environmental Nuclear Energy Advisory Council Protection 9 Susan Terrace 79 Elm Street Waterford, CT 06385 Hartford, CT 06106-5127 Ms. Nancy Burton Regional Administrator, Region I 147 Cross Highway U.S. Nuclear Regulatory Commission Redding Ridge, CT 00870 475 Allendale Road King of Prussia, PA 19406 Ms. Nancy Burton, Esquire 147 Cross Highway First Selectmen Redding Ridge, CT 06876 Town of Waterford 15 Rope Ferry Road Mr. G. D. Hicks, Director Waterford, CT 06385 Nuclear Station Safety and Licensing Mr. W. R. Matthews Dominion Nuclear Connecticut, Inc.

Senior Vice President - Nuclear Operations Rope Ferry Road and Chief Nuclear Officer Waterford, CT 06385 Dominion Nuclear Connecticut, Inc.

Rope Ferry Road Mr. Evan W. Woollacott Waterford, CT 06385 Co-Chair Nuclear Energy Advisory Council Charles Brinkman, Director 128 Terrys Plain Road Washington Operations Nuclear Services Simsbury, CT 06070 Westinghouse Electric Company 12300 Twinbrook Pkwy, Suite 330 Mr. William D. Meinert Rockville, MD 20852 Nuclear Engineer Massachusetts Municipal Wholesale Senior Resident Inspector Electric Company Millstone Power Station P.O. Box 426 c/o U.S. Nuclear Regulatory Commission Ludlow, MA 01056 P. O. Box 513 Niantic, CT 06357 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 Mr. Allan Johanson, Assistant Director Assistant to the Site Vice President Office of Policy and Management Dominion Nuclear Connecticut, Inc. Policy Development & Planning Division Rope Ferry Road 450 Capitol Avenue - MS# 52ERN Waterford, CT 06385 P.O. Box 341441 Hartford, CT 06134-1441 Mr. M. J. Wilson Manager - Nuclear Training Attorney Nicholas J. Scobbo, Jr.

Dominion Nuclear Connecticut, Inc. Ferriter, Scobbo, Caruso, Rodophele, PC Rope Ferry Road 75 State Street, 7th Floor Waterford, CT 06385 Boston, MA 02108-1807 Mr. A. J. Jordan, Jr. Ernest C. Hadley, Esquire Director - Nuclear Engineering 1040 B Main Street Dominion Nuclear Connecticut, Inc. P.O. Box 549 Rope Ferry Road West Wareham, MA 02576 Waterford, CT 06385 Citizens Regulatory Commission Mr. S. P. Sarver ATTN: Ms. Susan Perry Luxton Director - Nuclear Station Operations and 180 Great Neck Road Maintenance Waterford, CT 06385 Dominion Nuclear Connecticut, Inc.

Rope Ferry Road Deborah Katz, President Waterford, CT 06385 Citizens Awareness Network P.O. Box 83 Mr. J. Alan Price Shelburne Falls, MA 03170 Site Vice President Dominion Nuclear Connecticut, Inc. Mr. John Buckingham Rope Ferry Road Department of Public Utility Control Waterford, CT 06385 Electric Unit 10 Liberty Square Mr. Chris L. Funderburk New Britain, CT 06051 Director, Nuclear Licensing and Operations Support Mr. J. Alan Price Dominion Resources Services, Inc. Site Vice President Innsbrook Technical Center Dominion Nuclear Connecticut, Inc.

5000 Dominion Boulevard Rope Ferry Road Glen Allen, VA 23060-6711 Waterford, CT 06385 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