ML071100070

GE Self-Guarantee of Funds for Decommissioning, September 1999

ML071100070
Person / Time
Site:	Vallecitos Nuclear Center, 07000754, 07200001, Vallecitos
Issue date:	09/13/1999
From:	Sherin K General Electric Co
To:	Weber M Office of Nuclear Material Safety and Safeguards
References
Download: ML071100070 (10)

Text

Corporate Environmental Programs General Electric Company 3135 Easton Turnpike, Fairfield, CT 06431 Letter from Chief Financial Officer to Demonstrate Financial Assurance for Decommissioning September 13, 1999 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, 1998. A copy of the GE's 1998 Annual Report is enclosed.

NRC 'Letter Page Two FINANCIAL TEST Dollarsin Thousands

1. Decommissioning cost estimates for facilities as $3*5,*6* . $333,308 contained in SCHEDULE A.

2. Tangible Net Worth at least 10 times the current $15,245,000 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 $227,311,000 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 9/1/98 Date of maturity of above bond 11/1/18

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 - 1999 GE as Self-GuaranteeingLicensee:

DPR-1 General Electric Company GE Nuclear Energy 9,849 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 1,394 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 18,402 GE Nuclear Energy Vallecitos Nuclear Center 175 Curtner Ave. 6705 Vallecitos Rd.

San Jose, CA 95125 Pleasanton, CA 94566 DR-1 0 General Electric Company GE Nuclear Energy 15,070 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 23,296 GE Nuclear Energy Vallecitos Nuclear Center 175 Curtner Ave. 6705 Vallecitos Rd.

San Jose, CA 95125 Pleasanton, CA 94566 SNM-1 097 General Electric Company General Electric Company 234,786 GE Nuclear Energy GE Nuclear Energy 175 Curtner Ave. Castle Haynes Road San Jose, CA 95125 Wilmington, NC 28401 SNM-2500 General Electric Company GE Nuclear Energy 30,261 Morris Operation Morris Operation 7555 East Collins Rd. 7555 East Collins Rd.

Morris, IL 60450 Morris, IL 60450 Subtotal 333,3.0.8 Total GE Decommissioning atEtmts $3.33,308 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 18th day of March 1998 Keith 9. 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 revising and clarifying 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, guarantee, release, tax return and related documents, or other instruments may be executed this Company by the Chairman of the Board, on behalf of the Board, a Vice Chairman of an Executive Vice President, a Senior President, a Vice President reporting directly Vice or a Vice Chairman of the Board, to the Chairman the Comptroller, the Treasurer, the Secretary or any Vice President corporate staff officer of the Company, all who is a of the above-named individuals being hereinafter called "Authorized Persons".

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

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

(C) Each Authorized Person is hereby authorized delegate to others authority to execute to Company the following types of contracts and on behalf of the which relate to the function or componentother instruments 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 therewith, in connection including bids to and contracts with any Municipal, County or State Government, or with the Government of the United States or a foreign with any agency or department of any such country, or Government and bonds to secure the performance of such bids and contracts.

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

3. Assignments, waivers of lien, releases, guaranties, mortgages, indentures, credit agreements agreements, documents or other instruments and such other necessary or advisable, relating to either as may be indirect financing in connection with direct or Company, or the collection of debts, and proofssales by the and other instruments to be filed or of claims 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 acquire and dispose of motor vehicles on attorneys to Company and to file all necessary applications,behalf of the all necessary documents, and take all other execute necessary actions in connection therewith.

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

(D) The Senior Vice President - Finance and President and Treasurer are each severally the Vice delegate to others authority to execute on authorized to Company the following types of instruments behalf of the 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, and operation of bank accounts, (c) (b) establishment purchase or sell currencies (including authorizations to future delivery) , contracts for (d) financial contracts (e) applications for letters of credit, (f) certificates and replacement of certificatesissuance of stock lost, stolen or destroyed, and (g) that are share owner proxies, consentsý, waivers and releases.

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

3. Guarantees of indebtedness of foreign affiliates of the Company and guarantees or domestic obligations of such affiliates in connection of contingent guarantees of commercial transactions. with bank (E) The Senior Vice President - Finance President and Comptroller are each severally and the Vice delegate to others authority to execute authorized to Company, on behalf of the the following types of contracts and other instruments:

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

2. Reports of collections from employees and taxes due fromd 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 of claims for refunds and reports thereunder,

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

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

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

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

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

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

(G) Any contract, lease, relating to real property or to anydeed or other instrument improvements located or to be located thereon may be executed on behalf by the Manager-Real Estate and Construction of this Company the Kane-e-r- Meal* - Go .... *i*- Operation or by Aa~~~i~~t or eaae- nanciaAn Sectt s andConstruction Operation. e (H) Any delegations (including revocations revisions) as authorized by this Resolution shall be and writing. Authority delegated pursuant to the last sentence in of April 26, 1988 - 5 -

(Rev. 12/20/91)

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

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

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

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

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

April 26, 1988 - 6 -