ML051810229

Notice of Cancellation of Parent Guarantee

ML051810229
Person / Time
Site:	Millstone, Surry, North Anna
Issue date:	06/16/2005
From:	Hetzer G Dominion Resources
To:	Dyer J, Mcgetrick M Document Control Desk, Office of Nuclear Reactor Regulation, Virginia Electric & Power Co (VEPCO)
References
05-189
Download: ML051810229 (4)

Text

-. 4 G. Scott Hletzer Senior Vice President and Treasurer Xi, Dominion-120 Tredegar Street, Richmond, VA 23219 Mailing Address: P.O. Box 26532 Richmond, VA 23261 June 16, 2005 United States Nuclear Regulatory Commission Serial No.05-189 Document Control Desk NL&OS/SWT R1 Washington, D. C. 20555-0001 Docket Nos. 50-280, 281 Attention: 50-338, 339 Mr. James Dyer, Director 50-245, 336, 423 Office of Nuclear Reactor Regulation License Nos. DPR-32, 37 NPF-4, 7 Mark F. McGettrick DPR-21, 65 President and Chief Executive Officer-Generation NPF-49 Virginia Electric and Power Company Dominion Nuclear Connecticut, Inc.

100 Tredegar Street Richmond, VA 23219 DOMINION RESOURCES, INC.

VIRGINIA ELECTRIC AND POWER COMPANY DOMINION NUCLEAR CONNECTICUT, INC.

SURRY POWER STATION UNITS 1 AND 2 NORTH ANNA POWER STATION UNITS 1 AND 2 MILLSTONE POWER STATION UNITS 1. 2 AND 3 NOTICE OF CANCELLATION OF PARENT GUARANTEE On March 29, 2005, Virginia Electric and Power Company (Dominion) and Dominion Nuclear Connecticut, Inc. (DNC) submitted their decommissioning funding status report (Dominion Serial No.05-121) required by 10 CFR 50.75(f)(1). This report demonstrated that the decommissioning trust funds for Surry Units 1 and 2, North Anna Units 1 and 2, and Millstone Units 1, 2, and 3 each contain adequate funding to meet NRC requirements without further assurances. Accordingly, a parent guarantee is no longer needed to meet NRC requirements for any of these units.

This letter provides notice that Dominion Resources, Inc. (DRI) is canceling its parent guarantee supporting the obligations of its subsidiaries, Dominion and DNC, regarding decommissioning funding assurance for their nuclear power reactors. As discussed below, the parent guarantee is being canceled because the current financial

Serial No.05-189 Dockets Nos. 50-280/281, 338/339, 245/336/423 Page 2 of 4 assurances for Dominion's and DNC's reactors are sufficient without further reliance upon a parent company guarantee.

On June 6, 2003, Dominion Resources, Inc. executed a guarantee in the amount of

$110 million to support the financial assurance obligations of Dominion and DNC for nuclear power plant decommissioning. Dominion and DNC submitted this parent guarantee to the NRC by letter dated June 25, 2003 (Dominion Serial No. 03-178A and DNC Serial No. B18929). This guarantee increased the amount of a guarantee previously submitted to the NRC on March 31, 2003 (Dominion Serial No.03-178 and DNC Serial No. B18852), which in turn replaced a guarantee provided to the NRC on May 2, 2001 (DNC Serial No. B18400). The 2005 decommissioning funding status report demonstrated that the decommissioning trust funds for Surry Units 1 and 2, North Anna Units 1 and 2, and Millstone Units 1, 2, and 3 each contain adequate funding to meet NRC requirements without further assurances.

For this reason, DRI is canceling all guarantees for the decommissioning funding of Dominion's and DNC's nuclear power reactors. This cancellation will become effective 120 days after the date of receipt by Dominion, DNC and the NRC of this notice, as evidenced by the return receipts, unless NRC otherwise directs within this period.

If you require any further information concerning this notice, please contact David Sommers at (804) 273-2823.

Sincerely, G. Scott Hetzer //

Senior Vice Presid eand Treasurer Dominion Resources, Inc.

Attachments: None Commitments made in this letter: None

Serial No.05-189 Dockets Nos. 50-280/281, 338/339, 245/336/423 Page 3 of 4 cc: U. S. Nuclear Regulatory Commission Region II Sam Nunn Atlanta Federal Center 61 Forsyth Street, S.W., Suite 23T85 Atlanta, Georgia 30303 U. S. Nuclear Regulatory Commission Region I 475 Allendale Road King of Prussia, PA 19406-1415 Mr. N. P. Garrett NRC Senior Resident Inspector Surry Power Station Mr. J. T. Reece NRC Senior Resident Inspector North Anna Power Station Mr. R. Prince NRC Inspector Region I 475 Allendale Road King of Prussia, PA 19406-1415 Mr. S. M. Schneider NRC Senior Resident Inspector Millstone Power Station Mr. A. B. Wang Project Manager - Millstone Unit 1 U. S. Nuclear Regulatory Commission One White Flint North Mail Stop 7 El 11555 Rockville Pike Rockville, MD 20852-2738 Mr. V. Nerses NRC Senior Project Manager - Millstone Unit 2 U. S. Nuclear Regulatory Commission One White Flint North 11555 Rockville Pike Mail Stop 8C2 Rockville, MD 20852-2738

Serial No.05-189 Dockets Nos. 50-280/281, 338/339, 245/336/423 Page 4 of 4 Mr. G. F. Wunder Project Manager - Millstone Unit 3 U. S. Nuclear Regulatory Commission One White Flint North Mail Stop 8 BlA 11555 Rockville Pike Rockville, MD 20852-2738 Mr. S. R. Monarque NRC Senior Project Manager U. S. Nuclear Regulatory Commission One White Flint North 11555 Rockville Pike Mail Stop 8H12 Rockville, MD 20852-2738 Mr. J. E. Reasor, Jr.

Old Dominion Electric Cooperative Innsbrook Corporate Center 4201 Dominion Blvd.

Suite 300 Glen Allen, Virginia 23060 Mr. Joseph Roy Massachusetts Municipal Wholesale Electric Co.

Moody Street, P. 0. Box 426 Ludlow, MA 01056 Mr. Stephen Page Central Vermont Public Service Corp.

77 Grove Street Rutland, VT 05701