ML071100067

GE Self-Guarantee of Funds for Decommissioning, April 2001

ML071100067
Person / Time
Site:	Vallecitos Nuclear Center, 07000754, 07200001, Vallecitos
Issue date:	04/02/2001
From:	Schindler W General Electric Co
To:	Camper L NRC/FSME
References
Download: ML071100067 (12)

Text

0 GE NuclearEnergy General Electric Company 175 CurtnerAvenue, San Jose, CA 95125 April 2, 2001 Mr. Larry Camper Chief LLW & Decommissioning Branch Office U.S. Nuclear Regulatory Commission 11454 Rockville Pike Rockville MD 20852

Subject:

General Electric Company's Self-Guarantee submission for 2001; 1OCRF, "Criteria Relating to Use of Financial Tests and Self-Guarantee for Proving Reasonable Assurance for Decommissioning" Enclosed please find General Electric's calendar year 2001 submission update for the Self-Guarantee. If you have any questions, please direct them to the undersigned.

Wolfgang H. Schindler, Controller GE Nuclear Energy 175 Curtner Avenue San Jose, California 95125 (408) 925-2853

Corporate Environmental Programs General Electric Company 3135 Easton Turnpike, Fairfield, CT 06431 Letter from Chief Financial Officer to Demonstrate Financial Assurance for Decommissioning March 16, 2001 Mr. Michael Weber Chief LLW & Decommissioning Branch Office U. S. Nuclear Regulatory Commission 11545 Rockville Pike Rockville, MD 20852

Subject:

General Electric Company Self-Guarantee; 10 CRF Appendix C, "Criteria Relating to Use of Financial Tests and Self-Guarantees for Proving Reasonable Assurance of Funds for Decommissioning."

I am the Chief Financial Officer of the General Electric Company (GE), 1 River Road, Schenectady, NY 12345. This letter is in support of the use of the financial test to demonstrate financial responsibility under the Self-Guarantee Rule (58 CFR 68726; 12/29/93) which became effective on January 28, 1994.

The firm identified above guarantees, as self-guaranteeinglicensee, through the financial test specified in (58 FR 68726, 12/29/94), the decommissioning closure care for the following licenses held by GE. The current closure cost estimates covered by the test for decommissioning, so guaranteed, are shown for each facility/license: -- see SCHEDULE A.

This firm is required to file a Form 10K with the U.S. Securities and Exchange Commission (SEC) for the latest fiscal year; a copy of which is enclosed.

The fiscal year of this firm ends on December 31. The figures for the following items marked with an asterisk are derived from this firm's independently audited, year-end financial statements for the latest completed fiscal year, ended December 31, 2000. A copy of the GE's 2000 Annual Report is enclosed.

NRC Letter Page Two FINANCIAL TEST Dollars in Thousands

1. Decommissioning cost estimates for facilities as $104,300 contained in SCHEDULE A.

2. Tangible Net Worth at least 10 times the current $23,051,000 decommissioning cost estimate (of the current amount required if certification is used) for all decommissioning activities for which the company is responsible as self-guaranteeing licensee and as parent-guarantor.

3. Assets located in the United States amounting to at $277,818,000 least 90 percent of total assets or at least 10 times the current decommissioning cost estimate (or the current amount required if certification is used) for all decommissioning activities for which the company is responsible as self-guaranteeing licensee and as parent-guarantor.

4. Current bond rating as issued by Standard & Poor's Aaa-Moody's and Moody's Date of issuance of most recent bond 12/14/00 Date of maturity of above bond 12/01/10

5. Is line 2 at least 10 times line 1? Yes

6. Is line 3 at least 10 times line 1? Yes Further, I hereby certify that the contents of this letter and SCHEDULE A are true and correct to the best of my knowledge.

Keith S. Sherin Senior Vice President - Finance

SCHEDULE A NRC SELF-GUARANTEE RULE SCHEDULE OF LICENSES GENERAL ELECTRIC COMPANY - 2001 NRC ($in thousands)

License No. Name & Address of Licensee Address of Licensed Activity Cost Estimate.

GE as Self-GuaranteeingLicensee:

DPR-1 General Electric Company GE Nuclear Energy 10,400 GE Nuclear Energy Vallecitos Nuclear Center 175 Curtner Ave. 6705 Vallecitos Rd.

San Jose, CA 95125 Pleasanton, CA 94566 R-33 General Electric Company GE Nuclear Energy 1,500 GE Nuclear Energy Vallecitos Nuclear Center 175 Curtner Ave. 6705 Vallecitos Rd.

San Jose, CA 95125 Pleasanton, CA 94566 TR-1 General Electric Company GE Nuclear Energy 19,500 GE Nuclear Energy Vallecitos Nuclear Center 175 Curtner Ave. 6705 Vallecitos Rd.

San Jose, CA 95125 Pleasanton, CA 94566 DR-10 General Electric Company GE Nuclear Energy 16,000 GE Nuclear Energy Vallecitos Nuclear Center 175 Curtner Ave. 6705 Vallecitos Rd.

San Jose, CA 95125 Pleasanton, CA 94566 SNM-960 General Electric Company GE Nuclear Energy 24,700 GE Nuclear Energy Vallecitos Nuclear Center 175 Curtner Ave. 6705 Vallecitos Rd.

San Jose, CA 95125 Pleasanton, CA 94566 SNM-2500 General Electric Company GE Nuclear Energy 32,200 Morris Operation Morris Operation 7555 East Collins Rd. 7555 East Collins Rd.

Morris, IL 60450 Morris, IL 60450 Total Cost Estimates:

104,300 NRC_A.DOC

CERTIFICATION I, Keith S. Sherin, Senior Vice President - Finance, of the General Electric Company, do hereby certify that the attached Minute #10855 entitled "Execution of Contracts and Other Instruments" is a true and correct copy of a portion of the minutes of the meeting of the board of Directors of General Electric Company held on April 26, 1988, which minutes were approved by the Board of Directors at its meeting on May 27, 1988, and revised on December 20, 1991.

Dated this 16th day of March 2001 Keith S. Sherin Senior Vice President-Finance ATTEST:

Attesting Secretary

BOARD OF DIRECTORS MEETING April 26, 1988 (Revised December 20, 1991) 10855 EXECUTION OF CONTRACTS AND OTHER INSTRUMENTS The Chairman reminded the Board that the resolution dealing with the execution of contracts and other instruments on behalf of the Company had last been reviewed and revised by the Board in June, 1985, at which time the resolution had been modified to reflect changes in the Company's organization and to change its form to make periodic organization updatings unnecessary under ordinary circumstances.

The Chairman noted that the principal purpose of this resolution is to indicate to persons outside the Company the individuals within the Company who have authority to sign various documents.

In view of the Board's determination to limit the individuals elected as officers of the Company (and authorize the Chairman of the Board to appoint and remove persons as non-corporate Operational Officers), he indicated that it would be advisable to consider revisinq and clarifyinq this resolution to take account of these clarifications and related matters.

The Chairman pointed out that, like the existing resolution.

the proposed resolution would not confer any authority to approve transactions underlying the documents to be signed over and above that which is possessed by the signer either by virtue of the April 26, 1988

powers inherent in that individual's position with the Company or

.by virtue of a delegation of authority to that individual by the Board of Directors or higher management.

Following discussion, it was RESOLVED, that (A) Any contract, lease, license, assignment, other obligation, conveyance, power of attorney, bond or proxy, court pleading, release, tax return guarantee, documents, or other instruments may be executed and related this Company by the Chairman of the. Board, a onl behalf of the Board, an Executive Vice President, Vice Chairman of President, a Vice President reporting directly a Senior Vice or a Vice Chairman of the Board, the Comptroller,to the chairman Treasurer, the Secretary, or any vice President the corporate staff officer of the Company, all of the who is a individuals being hereinafter called "Authorized above-named Persons".

In addition to the foregoing, any Operational sign any instrument of the type described in thisOfficer may (A) which relates to the component or function to Paragraph operational Officer is assigned, and any Manager, which such or formally designated Acting Manager, of any Division or Department organization component may sign any such instrument level relates to that component. Each Operational Officer which and such Manager or Acting manager is authorized to delegateeach others, authority to execute on behalf of the Company, to types of contracts or other instruments which relate the function to the or component to which such operational Manager or Acting manager is assigned which are of Officer, the same types an the contracts and other instruments listed Paragraph (C) below.

in (B) The Chairman of the Board and each of Chairmen of the. Board is authorized to delegate totheothers Vice authority to execute contracts and other instruments on behalf of the Company as he considers necessary and in the best interest of the Company.

(C) Each Authorized Person is hereby authorized to delegate to others authority to execute on behalf of the company the following types of contracts and other instruments which relate to the function or component for which such Authorized Person is responsible:

1. Sales, purchase and consignment contracts, bids therefor,

.(including contracts providing for or relating to a April 26, 1988-2 franchise for the distribution or resale of this Company's products) and documents in connection therewith, including bids to and contracts with Municipal, any County or State Government, or with the Government of the United States or a foreign country, or with any agency or department of any such Government and bonds to secure the performance of such bids and contracts.

2. Installation, erection, and service contracts and bids therefor and documents in connection therewith (including but not limited to installation, erection, and service contracts and bids therefor with any Municipal, County or State Government, or with the Government of the United States or a foreign country, or with any agency or department of any such Government) and bonds to secure the performance of any such contract or bid.

3. Assignments, waivers of lien, releases, guaranties, mortgages, indentures, credit agreements and such other agreements, documents or other instruments as may necessary or advisable, relating to either direct be or indirect financing in connection with sales by Company, or the collection of debts, and proofs of claims the and other instruments to be filed or used in any bankruptcy or insolvency proceedings.

4. Contracts, leases, deeds, or other instruments relating to real property or to any improvements thereon.

5. Powers of Attorney authorizing agents and attorneys to acquire and dispose of motor vehicles on behalf of Company and to file all necessary applications, execute the all necessary documents, and take all other necessary actions in connection therewith.

6. Powers of Attorney authorizing agents and attorneys transact business of the Company with the U.S. Customs to Service and with customs authorities in other countries.

(D) The Senior Vice President - Finance and the Vice President and Treasurer are each severally authorized to deleqate to others authority to execute on behalf of the Company the following types of instruments and in connection therewith to establish, as appropriate, Company-wide procedures:

1. Agreements or other instruments relating to (a) investment of funds of the Company, including but not limited to, instruments pertaining to the purchase, sale, exchange, assignment, conversion, transfer, custody or April 26, 1988 - 3 -

loan of any securities or properties, (b) establishment and operation of bank accounts, (c) authorizations purchase or sell currencies (including contracts to future for delivery) , (d) financial contracts (e) applications for letters of credit, (f) issuance of stock certificates and replacement of certificates that Lost, stolen or destroyed, and (g) share owner proxies, are consents, waivers and releases.

2. Checks, drafts, other payment authorizations and notes payable of the Company. Except as provided below, any such authorization shall require countersignatures stipulate that no one individual may both sign and countersign and the same instrument. Any delegation hereunder may provide that the individual authorized sign or countersign may effect his or her signature to means of a facsimile signature. by It shall not, however, be mandatory for any authorization hereunder to require signatures and countersignatures with respect to checks or drafts drawn on dividend, payroll, or working (a) fund accounts, (b) depositary transfers or endorsements to the account or credit of the Company or (c) transfers between Company bank accounts.

3. Guarantees of indebtedness of foreign or domestic affiliates of the Company and guarantees of contingent obligations of such affiliates in connection with bank guarantees of commercial transactions.

(E) The Senior Vice President - Finance and the Vice President and Comptroller are each severally authorized delegate to others authority to. execute on behalf to Company, of the the following types of contracts and other instruments:

1. Federal, State or local tax returns documents, to be filed in the United Statesandor related foreign countries,

2. Reports of collections from employees and taxes due from the Company under the Federal Insurance Contributions Act, Federal Unemployment Tax Act, and the unemployment compensation laws of each of the states, the District Columbia and Puerto Rico, as well as any related claims of for refunds and reports thereunder,

3. Applications, claims, surrender and other forus in connection with the General Electric Supplemental Life Insurance Program, April 26, 1988 -- 4 --

4. Annual, financial and other reports required of the Administrator under the Federal Employment Retirement Income Security Act of 1974, and any comparable report required by similar State laws,

5. Such certifications, invoices, reports, releases and other instruments as are necessary to conform to requirements of the United States Government or department, agency or instrumentality therefor as may any necessary or advisable in order to comply with the terms be of any agreement between the Company and the United States Government or any department, agency or instrumentality thereof.

(F) The General Counsel is authorized others authority to execute on behalf of theto Company, delegate to the following types of instruments:

1. Licenses, contracts, assignments, releases, court pleadings and other instruments relating to inventions and technology and to patent, trademark and copyright matters.

2. Petitions, powers of attorney, authorizations, verifica-tions, nominations of representatives, declarations, other instruments relating to proceedings in the Patent, and Trademark Registration or Copyright Offices servicing any country or region of the world, or to related appeal proceedings, or relating to maintenance and-defense the resulting industrial property rights, assignments of rights to apply for and acquire patents and trademark of registrations, evidence of such assignments, requests for the registration of patents as available for licensing, reports of inventions and petitions for waiver of patent rights to any department or agency of the United States Government and assignments, licenses and other instru-ments confirmatory of Government rights in patents and inventions.

(G) Any contract, lease, deed or other instrument relatinq to real property or to any improvements located be located thereon may be executed on behalf of this or to by the Manager-Real Estate and Construction operation Company or by AnAe or te Manager- Fnancial Section or sa ea site and onstruction Operation.

(H) Any delegations (including revocations revisions) as authorized by this Resolution shall be and in writing. Authority delegated pursuant to the last sentence of April 26, 1988 - 5 -

(Rev. 12/20/91)

Paragraph (A) or pursuant to Paragraphs (B),

(F) above may be redelegated by the persons(C), (D), (E) or delegations are made who in turn may to whom such redelegation; provided, authorize further however, that no such initial or subsequent redelegation shall be made except with the limitations imposed thereon by the in conformity plus any restrictions contained in subsequent initial delegation redelegations.

(I) The Secretary, the Associate Corporate Secretary any Attesting Secretary are each severally and the Corporate Seal to and attest to contracts authorized to affix instruments executed by persons acting and other authority granted by Paragraphs (A) or (G) pursuant to the above to authority delegated in accordance with Paragraphs or pursuant (C), (D), (E), (A), (B),

(F) or (H) above. The Secretary, the Associate Corporate Secretary and any Attesting Secretary severally authorized to certify as to the are also each Resolution, as to the incumbency of any personprovisions of this within the Company and as to the terms of any in any position delegation under this Resolution.

(J) Resolution #10502 dated June 28, 1985 is superseded effective as of April 26, 1988.

April 26, 1988 Stamford Square 3001 Summer Street Stamford, CT 06905 Independent Accountants' Report on Applying Agreed-Upon Procedures The Board of Directors General Electric Company:

We have performed the procedures listed below, which were agreed to by the Board of Directors and Management of General Electric Company ("the Company"), solely to assist you in connection with the filing of certain financial information included in the "Financial Test" section of your letter dated March 16, 2001 to the United States Nuclear Regulatory Commission. This engagement to apply agreed-upon procedures was performed in accordance with the standards established by the American Institute of Certified Public Accountants. The sufficiency of these procedures is solely the responsibility of the Board of Directors and Management of General Electric Company.

Consequently, we make no representation regarding the sufficiency of the procedures described below either for the purpose for which this report has been requested or for any other purpose.

The procedures and associated findings are as follows:

Tangible Net Worth - We compared the dollar amount of tangible net worth, $23,051,000 thousand, as shown in Item 2, to the difference between Total Share Owners' Equity,

$50,492,000 thousand, and Intangible Assets, $27,441,000 thousand, each reflected in the Statement of Financial Position on page 36 of the Company's 2000 Annual Report, and found such amounts to be in agreement.

Total Assets in the United States - We compared the Company's Total Assets in the United States, $277,818,000 thousand, as shown in Item 3, to the Company's Total Assets in the United States, reflected in Note 29 - Geographic Segment Information on page 74 of the Company's 2000 Annual Report, and found such amounts to be in agreement.

We were not engaged to, and did not, perform an audit, the objective of which would be the expression of an opinion on the specified elements, accounts, or items. Accordingly, we do not express such an opinion. Had we performed additional procedures, other matters might have come to our attention that would have been reported to you.

This report is intended solely for the use of the Board of Directors and Management of General Electric Company, and should not be used by those who have not agreed to the procedures and taken responsibility for the sufficiency of the procedures for their purposes.

March 16, 2001 a member of KPMG International, a Swiss association,