ML081070281

Response to Request for Additional Information for Request for Exemption from 10 CFR 50.82(a)(8) (TAC No. MD6869/MD6870)

ML081070281
Person / Time
Site:	South Texas
Issue date:	04/09/2008
From:	Sheppard J Southern Nuclear Operating Co
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
NOC-AE-08002286, STI: 32291463, TAC MD6869, TAC MD6870
Download: ML081070281 (59)

Text

Nuclear Operating Company South Texas Prolect Electric Generating Station P.. Box 289 Wadsworth, Texas 77483 V\\

April 9, 2008 NOC-AE-08002286 File No.: G25, D57, D43.1 10 CFR 2.390 10 CFR 50.82(a)(8)

U.S. Nuclear Regulatory Commission Attention: Document Control Desk One White Flint North 11555 Rockville Pike Washington, D.C. 20852-2738 South Texas Project Units 1 and 2 Docket Nos. STN 50-498 and STN 50-499 Response to Request for Additional Information for Request for Exemption from 10 CFR 50.82(a)(8) (TAC No. MD6869/MD6870)

By letter dated September 19, 2007, STP Nuclear Operating Company ("STPNOC"), acting on behalf of NRG South Texas LP ("NRG South Texas"), the City Public Service Board of San Antonio ("CPS") and the City of Austin, Texas ("Austin Energy") (together, the "STP Owners"),

requested an exemption pursuant to 10 CFR 50.12 from Nuclear Regulatory Commission

("NRC") regulations to permit the immediate withdrawal of certain funds from the nuclear decommissioning trust funds (NDTs) maintained by the STP Owners for South Texas Project Electric Generating Station Units 1 and 2.

Specifically, the STP Owners requested an exemption from provisions of 10 CFR 50.82(a)(8)(i) & (ii) which may restrict the withdrawal of funds from NDTs until after permanent plant shutdown.

The purpose of this exemption request is to permit the use of NDT funds, not to exceed

,$20 million per unit, in order to pay for the prompt disposal of certain major radioactive components (MRCs)., These MRCs are the reactor pressure vessel ("RPV") heads to be removed from the Facility in the upcoming Fall 2009 Unit 1 outage and the Spring 2010 Unit 2 outage, as well as the steam generators that were removed from the Facility in 2000 and 2002.

On March 3, 2008, NRC requested that STPNOC provide additional information regarding the exemption request, and STPNOC's response is provided as an Enclosure to this letter.

In addition to the requested information, STPNOC is also providing supporting documentation as Attachments 1, 2 and 3 to the Enclosure. Attachments 2 and 3 provide certain cost estimates and. proposals that are commercially sensitive, because they either reflect STPNOC's methodologies for estimating project costs that are expected to be competitively bid (if the Exemption Request is denied) or are a specific bid proposal that has been submitted to STPNOC. STPNOC therefore requests that this proprietary information be withheld from public disclosure pursuant to 10 CFR 2.390, as described in the enclosed Affidavit of James J.

Sheppard.

This letter and attachment contain no new commitments.

STI: 32291463

NOC-AE-08002286 Page 2 of 5 If NRC requires additional information concerning this request, please contact either Mr. Philip Walker at (361) 972-8392, or me at (361) 972-8757.

J. J. Sheppard President & Chief Executive Officer

Enclosure:

Response to NRC Request for Additional Information

NOC-AE-08002286 Page 3 of cc:

(paper copy)

(electronic copy)

Regional Administrator, Region IV U.S. Nuclear Regulatory Commission 611 Ryan Plaza Drive, Suite 400 Arlington, TX 76011-8064 Mohan C. Thadani Senior Project Manager U.S. Nuclear Regulatory Commission One White Flint North (MS 7 D1) 11555 Rockville Pike Rockville, MD 20852 Senior Resident Inspector U.S. Nuclear Regulatory Commission P.O. Box 289, Mail Code: MN116 Wadsworth, TX 77483 Richard A. Ratliff Bureau of Radiation Control Texas Department of State Health Services 1100 West'49th Street Austin, TX 78756 C. M. Canady City of Austin Electric Utility Department 721 Barton Springs Road Austin, TX 78704 Brian Almon Public Utility Commission P.O. Box 13326 1701 North Congress Avenue Austin, TX 78701-3326 Environmental and Natural Resources Policy Director P.O. Box 12428 Austin, TX 78711-3189 Judge, Matagorda County Matagorda County Courthouse 1700 Seventh Street Bay City, TX 77414 A. H. Gutterman, Esq.

Morgan, Lewis & Bockius LLP Mohan C. Thadani U.S. Nuclear Regulatory Commission Thad Hill Eddy Daniels Catherine Callaway Brad Porlier Steve Winn Staney Rostad NRG South Texas LP J. Nesrsta/R. J. Temple E. Alarcon/Kevin Polio City Public Service Jon C. Wood Cox Smith Matthews C. Kirksey City of Austin STI: 32291463

NOC-AE-08002286 Page 4 of 5 UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of

))

STP Nuclear Operating Company

)

Docket Nos. 50-498

)

50-499 South Texas Project Units 1 and 2

)

AFFIDAVIT I, James J. Sheppard, President and CEO of STP Nuclear Operating Company (STPNOC) do hereby affirm and state:

1.

I am authorized to execute this affidavit on behalf of STPNOC.

2.

STPNOC is providing information in support of its Exemption Request dated September 19, 2007.

The information being provided in Attachments 2 and 3 to

'STPNOC's response to NRC request for additional information contains STPNOC's Projections of project costs and bid proposals made to STPNOC. Attachments 2 and 3 constitute proprietary commercial and financial information that should be held in

,confidence by the NRC pursuant to the policy reflected in 10 CFR 2.390(a)(4), because:

This information is and has been held in confidence by STPNOC.

ii.

This information is of a type that is customarily held in confidence by STPNOC, and there is a rational basis for doing so because the information contains sensitive financial information concerning projected costs of STPNOC or bid proposals made to STPNOC; iii.

This information is being transmitted to the NRC voluntarily and in confidence.

iv.

This information is not available in public sources and could not be gathered readily from other publicly available information.

v.

Public disclosure of this information would create substantial harm to the competitive position of STPNOC by disclosing its internal cost projections and/or consideration of bid proposals.

NOC-AE-08002286 Page 5 of 5

3.

Accordingly, STPNOC requests that the designated documents be withheld from public disclosure pursuant to 10 CFR 2.390(a)(4).

J. J. Sheppard President & Chief Executive Officer STATE OF TEXAS

)

COUNTY OF M AT/ ( jO R D\\

Subscribed and sworn to me, a Notary Public, in and for the State of Texas, this J day of April, 2008.

..... LOIS J, MILLS aNotary Public, State oin aTo My CommiýSsion Expires JULY,2011 Notary Public in and for the State of Texas

Enclosure NOC-AE-08002286 Page 1 of 8 SOUTH TEXAS PROJECT UNITS 1 AND 2 Response to NRC Request for Additional Information In 2007, the STP Nuclear Operating Company (STPNOC) initiated a new site-specific decommissioning cost study for South Texas Project Units 1 and 2 (STP Units 1 & 2) that was conducted by TLG Services, Inc. and completed in March 2008 (2008 TLG Study). Attachment 1 to this Enclosure provides selected pages that are relevant to this RAI response. STPNOC notes that TLG's estimates for disposal of large components are lower in current 2007 dollars than the estimate provided in the 2004 study in 2004 dollars and submitted to NRC with STPNOC's September 19, 2007 Exemption Request. The current TLG estimates are based, in part, upon the attractive pricing in current proposals that STPNOC has received for the disposal of these large components in 2008. The differences between the estimates in the 2004 TLG Study and the estimates in the 2008 TLG Study are indicative of the pricing available currently, and not necessarily the pricing that may be expected if this cost is deferred'until the end of plant operating life.

1.

The STP Nuclear Operating Company (STPNOC, licensee) stated that the cost to construct an on-site storage mausoleum would be $1.4 million.

In addition, STPNOC stated that the mausoleum also resulted in an annual cost to maintain it, and the eventual cost to decommission it. These costs are part of the basis for the exemption request. Please provide a detailed cost for the mausoleum as well as the associated maintenance and decommissioning costs.

STPNOC has prepared a "Project Evaluation and Approval" which was the basis for estimated cost to construct an on-site mausoleum for the reactor pressure vessel (RPV) heads. This analysis resulted in a Total Probabilistic Cost of approximately $1.4 million.

A copy of this project evaluation is provided as Attachment 2, which is marked confidential and proprietary.

STPNOC has not yet sought competitive bids for this project, but STPNOC would expect to seek competitive bids for this project if the pending Exemption Request is denied.

Therefore, STPNOC requests that this document be withheld from public disclosure pursuant to 10 CFR 2.390, as supported by the Affidavit of James J. Sheppard.

Annual maintenance costs for the mausoleum are for ongoing surveillance and surveys and potential repairs or improvements during the life of the facility.

Based upon experience with the Old Steam Generator Storage Facility (OSG SF), which is described in greater detail below in answer to RAI 3, STPNOC believes that annual expense for an RPV Head Storage Facility (RPVH SF) would be in the range of $5,000-10,000 per year.

As reflected in Line Item 3b1.1.13 in the Unit 2 decommissioning cost estimates in the 2008 TLG Study, the estimated cost to decommission the RPVH SF is $94,000. This item is highlighted on the relevant page provided in Attachment 1 (Appendix C, Page 21 of 23).

2.

STPNOC stated that the purpose of the exemption request is to permit the use of the decommissioning trust funds, not to exceed $20.0 million per unit, for the prompt disposal of certain major radioactive components (MRCs). Please provide a detailed cost breakdown of the projected cost of decommissioning MRCs, up to

$20.0 million per unit, including the type and number of components that would be

Enclosure NOC-AE-08002286 Page 2 of 8 disposed.' If the costs exceed $20.0 million, provide details of how STPNOC will fund any additional costs.

The MRC disposal project involves the disposal of eight steam generators and two reactor pressure vessel heads, as well as demolition and removal of the steam generator mausoleum. The requested authorization to withdraw up to $20 million per unit is based upon proposals for this work that STPNOC received from EnergySolutions, LLC.

A copy of these proposals is provided as Attachment 3, which is marked as proprietary and confidential. STPNOC requests that these documents be withheld from public disclosure pursuant to 10 CFR 2.390, as supported by the Affidavit of James J.

Sheppard.

As reflected in Line Items 2a.1.1.6 in the Unit 1 and Unit 2 decommissioning cost estimates in the 2008 TLG Study, the estimated cost to decommission the steam generators is $14.3 million per unit. These items are highlighted on the relevant pages provided in Attachment 1 (Appendix C, Pages 4 and 15 of 23). As reflected in Line Items 2b.2.1 in the Unit 1 and Unit.2 decommissioning cost estimates in the 2008 TLG Study, the estimated cost to decommission the "Spare RX closure head[s]" (assuming that they remain on site) is $1.3 million per unit. These items are highlighted, on the relevant pages provided in Attachment 1 (Appendix C, Pages 7 and 18 of 23). Thus, the current TLG estimate for disposal of the steam generators and RPV heads is

$31.2 million, not including $329,000 for the demolition of the steam generator

• mausoleum discussed furtherin the response to RAI 3 below.

.The current EnergySolutions proposal exceeds this new TLG estimate, but not

.substantially.

More importantly, the EnergySolutions proposal for steam generator

,disposal is more than 15% lower than TLG's 2004 estimate for the disposal of these

eight steam generators, without taking into account inflation from 2004 to 2008. Also,

• the variation in price estimates reflects current favorable changes in market conditions, which suggests that the current opportunity for disposal is desirable as compared with other times in the last decade or more.

The EnergySolutions proposals are for fixed price contracts, and STPNOC therefore does not anticipate the possibility of costs exceeding the amount up to $20 million per unit authorized for withdrawal, which includes an approximately 20% margin for costs exceeding the expected costs.

If unexpected costs are incurred that exceed these amounts, STPNOC's owners would fund those costs through STPNOC operating or capital budgets.

3.

The licensee stated that STP currently has eight steam generators currently being stored on site resulting from the 2000 and 2002 steam generators' replacements.

Please describe in detail the $10,000.00 per year annual costs, and how these steam generators are currently being stored on site. The submittal also stated that STPNOC constructed a separate facility to store these steam generators; please provide a description and the cost of this storage facility. In addition, provide an estimate of the additional annual cost to store the MRCs as a result of replacement of the vessel heads during 2009 and 2010 outages, if the MRCs are not immediately sent for disposal.

Enclosure NOC-AE-08002286 Page 3 of 8 The eight steam generators currently maintained at the STPNOC site are stored in a specially constructed mausoleum or OSG SF. This OSG SF is currently located outside the protected area for STP Units 1 & 2, but it would be within the site protected area for the proposed new STP Units 3 & 4. The OSG SF was constructed in 1999-2000 at a cost of approximately $3.076 million.

Annual maintenance costs for the mausoleum are for quarterly surveys, which are estimated at 40 hours4.62963e-4 days <br />0.0111 hours <br />6.613757e-5 weeks <br />1.522e-5 months <br /> per year, five hours each for two Health Physics Technicians four times per year, at a cost of $60 per hour.

Supervisor review and reporting is an additional estimated four hours per year at $65 per hour. This results in an annual cost of $2,660.

In addition, STPNOC anticipates that there may be need for occasional repairs or replacements associated with the facility.

For example, within the last few years a hurricane caused damage to the roof of the SG Facility, which had to be replaced. In this prior instance, the replacement was covered by a contractor's warranty.

However, the warranty has now expired, and any future such replacement estimated at

$150,000 would be paid by STPNOC.

Therefore, over the remaining life of the SG Facility, which is assumed to be at least 20 years, STPNOC projects that an annualized average cost of $7,500 per year for repairs and replacements can reasonably be expected.

In addition, STPNOC anticipates that it will incur increased security costs for the

,OSG SF, if it is not removed from the site before the area around this facility is made

• part of the STP protected area with the development of STP Units 3:& 4. Storage

-,`facilities would not require security protection, because they are not safety-related

,structures, systems, or components.

However, increased security costs are expected "for the OSG SF and RPVH SF, because they will be inside the protected area, requiring

.,security lighting and periodic checks by security officers 365 days per year, on both days

ý.and nights. Because the buildings create obstructions, as opposed to open land with clear sight lines, STPNOC estimates that the increased security cost will be one-man-year per year (2080 hours0.0241 days <br />0.578 hours <br />0.00344 weeks <br />7.9144e-4 months <br /> per year), or $52,000, until the OSG SF and RPVH SF are decommissioned and removed from the site. In addition, the buildings likely will cause the need for security fences, lighting and camera coverage, which will increase the complexity of the required security coverage. However, no reliable estimate of these costs is presently available.

As reflected in Line Item 3bW.1.15 in the Unit 2 decommissioning cost estimates in the 2008 TLG Study, the estimated cost to decommission the OSG SF mausoleum is

$329,000.

This item is highlighted on the relevant page provided in Attachment 1 (Appendix C, Page 21 of 23).

If the RPV heads are not disposed off-site, they will need to be stored in a newly constructed mausoleum because there is no adequate additional space to store the RPV heads in the OSG SF. The costs associated with the RPVH SF are discussed above in the response to RAI 1.

4.

STPNOC stated that the decommissioning trust balances as of December 31, 2006, totaled $364.9 million for Unit 1 and $445.8 million for Unit 2. This is the amount that STP submitted to the NRC for compliance with 10 CFR 50.75(f) to demonstrate that STP exceeded the NRC minimum requirements for radiological decommissioning. In addition, STP stated that the decommissioning site-specific

Enclosure NOC-AE-08002286 Page 4 of 8 cost estimates included not only radiological cleanup required by NRC, but the costs of dismantling the facilities and restoring the site, as well as the cost for storage and monitoring the spent fuel until the U.S. Department of Energy takes custody of the fuel. STPNOC needs to identify the source of the funds to support these additional non-radiological activities.

STPNOC's owners expect that their current trust fund balances together with future collections will fund all of the activities necessary for decommissioning STP Units 1 & 2, including basic radiological decommissioning, spent fuel management and site restoration activities. The site-specific decommissioning cost estimates for STP Units 1

& 2 have included estimates for all of these expected costs, and the owners have been funding their trust funds accordingly. In addition, the Public Utility Commission of Texas (PUCT) has approved collections from retail electric customers to fund these activities.

In some cases, the STPNOC owners have not maintained separate subaccounts to specifically track the funds being collected to fund decommissioning activities relating to spent fuel management, i.e., other than the basic radiological costs specified in 10 CFR 50.75(b) & (c). For example, the City Public Service Board of San Antonio (CPS) has maintained separate subaccounts for spent fuel management costs relating to its 28%

legacy interest in STP Units 1 & 2, but it has not maintained separate subaccounts for its 12% interest in STP Units 1 & 2 that was acquired in 2005 from AEP Texas Central Company (legacy AEP interest).

'ý,The&STPNOC owners that are subject to the jurisdiction of the PUCT (NRG Energy for (its 44% interest in STP Units 1 & 2,1 and CPS forits 12% legacy AEP interest) expect to

,,*seek PUCT authorization in 2008 to create a'nd maintain specific subaccounts for the

',,spent fuel management costs that have been collected to date, as well' as for the

• iremaining funds that are to be collected. Based upon nuclear decommissioning trust

fund (NDT) balances as of 12/31/2007, Tables 1 and 2 below set forth the NDT balances for each unit and for each of the owners, as well as the NRC formula amount and site-specific cost estimate for each unit and for each of the owners. The Balance breakdown between "Basic & Site Restoration" and "Spent Nuclear Fuel Management" is a projection of the balance that would be allocated based upon the 2008 TLG Study.

NRG Energy owns 30.8% interests in STP Units 1 & 2 that were formerly owned by Houston Lighting & Power Company and 13.2% interests that were formerly owned by AEP Texas Central Company.

Enclosure NOC-AE-08002286 Page 5 of 8 Table 1 Ownership NRC Balance Balance Balance TLG TLG TLG (Unit 1)

Formula (Total)

(Basic +

(SNF (Basic +

(SNF (Total)

Site)

Mgmt.)

Site)

Mgmt.)

Total 375,884.0 391,626.0 284,001.3 107,624.7 509,082.0 192,921.0 702,003.0 NRG (30.8%)

115,772.3 121,955.0 88,439.9.

33,515.1 156,797.3 59,419.7 216,216.9 NRG (13.2%)

49,616.7 47,135.9 34,182.2 12,953.7 67,198.8 25,465.6 92,664.4 CPS (28%)

105,247.5 124,652.2 90,395.9 34,256.3 142,543.0 54,017.9 196,560.8 CPS (12%)

45,106.1 44,922.2 32,576.9 12,345.3 61,089.8 23,150.5 84,240.4 Austin2 60,141.4 52,960.7 38,406.3 14,554.4 81,453.1 30,867.4 112,320.5 (16%)

Table 2 Ownership NRC Balance Balance Balance TLG TLG TLG (Uneit 2RC Formu (alae (Basic +

(SNF (Basic +

(SNF Tl)

(Unit 2)

Formula (Total)

Site)

Mgmt.)

Site)

Mgmt.)

(Total)

Total 375,884.0 476,863.7 360,789.0 116,074.7 590,166.0 189,871.0 780,037.0 NRG (30.8%)

115,772.3 155,857.9 117,920.1 37,937.8 181,771.1 58,480.3 240,251.4 NRG (13.2%)

49,616.7 57,256.4 43,319.5 13,936.9 77,901.9 25,063.0 102,964.9 CPS(.

(28%)

105,247.5 152,352.7 115,268.1 37,084.63 165,246.5 53,163.9 218,410.4 (CPS (12%)

45,106.1 46,482.3 35,167.9 11,314.4 70,819.9 22,784.5 93,604.4 Austin 4 (16%)

60,141.4 64,914.4 49,113.4 15,801.0 94,426.6 30,379.4 124,805.9 2

NDT Balance for Austin is based upon 12/31/2006.

CPS's current subaccount of $5.54 million is being reevaluated to align with the latest cost estimate.

NDT Balance for Austin is based upon 12/31/2006.

Enclosure NOC-AE-08002286 Page 6 of 8 The comparison based upon NRC's current formula amount shows that the STP trust funds are robustly funded, even without taking credit for future earnings and ongoing contributions. However, by just taking credit for a 2% real rate of return on earnings through the remaining life of the current operating licenses, it can be seen that, even when excluding the portion of the existing trust fund balances allocable to spent fuel management, the remaining balances for each owner and each owner's share for each unit exceed the NRC minimum. This is reflected in Table 3 and Table 4, which provide the discounted value of the of the NRC minimum amount that would be required to be funded in current dollars, when a 2% real rate of return for earnings is taken into account.

The analysis reflected in Tables 3 and 4 shows that, even excluding the percentage of the balances allocable to spent fuel management, the remaining funds for each owner's share of each unit are sufficient to satisfy NRC's minimum decommissioning funding assurance requirements, even without taking into account that the owners continue to make contributions to their trust funds to assure that funding will be sufficient to meet the total site-specific decommissioning cost estimate. For Unit 1, the current total balance exceeds the NRC required minimum amount by more than $40 million, and for Unit 2, by more than $120 million.

Enclosure NOC-AE-08002286 Page 7 of 8 Table 3 Balance Balance Balance (Total)

(Basic + Site)

(SNF Mgmt.)

Total 237,774.8 391,626.0' 284,001.3 107,624.7 NRG (30.8%)

73,234.6 121,955.0 88,439.9 33,515.1 NRG 31,386.3 47,135.9 34,182.2 12,953.7 (13.2%)

CPS (28%)

66,576.9 124,652.2 90,395.9 34,256.3 CPS (12%)

28,533.0 44,922.2 32,576.9 12,345.3 Austin' 38,044.0 52,960.7 38,406.3 14,554.4 (16%)

Table 4 Balance Balance Balance (Total)

(Basic + Site)

(SNF Mgmt.)

Total 231572.6 476,863.7 360,789.0 116,074.7 NRG (0%

71,324.4 155,857.9 117,920.1 37,937.8 (30.8%)

NRG (13.2%)

30,567.6 57,256.4 43,319.5 13,936.9 CPS (28%)

64,840.3 152,352.7 115,268.1 37,084.66 CPS (12%)

27,788.7 46,482.3 35,167.9 11,314.4 Austin 7 37,051.6 64,914.4 49,113.4 15,801.0 (16%)

5 6

7 NDT Balance for Austin is based upon 12/31/2006.

CPS's current subaccount of $5.54 million is being reevaluated to align with the latest cost estimate.

NDT Balance for Austin is based upon 12/31/2006.

Enclosure NOC-AE-08002286 Page 8 of 8 ATTACHMENTS:

1.

Selected Pages from 2008 TLG Study (non-proprietary)

2.

Project Evaluation and Approval (proprietary)

3.

EnergySolutions Proposa!s (proprietary)

ATTACHMENT 1 SELECTED PAGES FROM 2008 TLG STUDY

South Texas Project Electric Generating Station Decommissioning Cost Analysis Page 1 of 6 Document S30-1564-002, Rev. 0 Section 6, Page 3 of 3 TABLE 6.1 COST

SUMMARY

DECOMMISSIONING COST ELEMENTS (thousands of 2007 dollars)

Cost Element

__Unit 1

Unit 2

~Total IPercentage Decontamination 14,628 14,973 29,6021 2.0 Removal 102,281 134,827 237,108 16.0 Packaging

-18,817 18,814

-37,631

__2.5 a.a 8...

....1 _, 1 4.......

3,6 !......2 _

Transportation 11,544 11,511 23,055 1.6 Waste Disposal 73,513 73,293 146,806 1 9.9 Off-site Waste Processing 31,393 30,623 62,015 4.2 Program Management Ell 218,590,. 272,828 491,418 33.2 Severance 10,587 14,988 25575 1.7 FelE2 156,773 152,003 308,776 20.8 Spent fuel pool Iation Insurance and Regulatory Fees Energy Characterization and Licensing Surveys Survey & Release of Scrap Metal County Taxes 10,720 17,836 10,455 7,1471 17,866 1.2 16,891 34,727 2.3 20,9201 1.4 9,;

2, 6,

6,-

879 8,056 17,935 1.2 003 2,078 J 4,081 0.3 892 5

_ 5453 12,344.

0.8 092 16:68 12,179 0 8 003 780,037 1,482,039 100.0 Total [3 702,'

Cost Element License Termination Spent Fuel Management Site Restoration' Total

[3]

Unit 1.

462,762 192,921 Unit2 Total 508,903 971,665 189,871 382,792 81,263 127,582 Percentage 65.6 25.8 8.6 100.0 46,319 702,003 1,482,039 780,037

[13 Includes engineering and security costs

[2]

Excludes program management costs (staffing) but includes capital expenditures for ISFSI construction, costs for spent fuel loading/packaging costs/spent fuel pool O&M and EP fees

[3]

Columns may not add due to rounding TLG Services, Inc.

South Texas Project Electric Generating Station Decommissioning Cost Analysis Document S30-1564-002, Rev. 0 Appendix C, Page 4 of 23 Page 2 of 6 Table C-1 South Texas Project Electric Generating Station, Unit I DECON Decommissioning Cost Estimate (thousands of 2007 dollars)

Activity Decon Removal Index Activity Description Cost Cost 1b.2 Subtotal Period lb Additional Costs Period lb Collateral Costs lb3.1 DCcon equipment 945 1 b53.2 DOC staff relocation expenses 1 b.3.3

. Process liquid waste 72 b13.4 Small tool allowance 2

1b.3.5 Pipe cutting equipment 957 11b.3.6 Decon rig 1,243 lb.3.7 Spent Fuel Capital and Transfer lb.3.8 Matagorda County Taxes and Fees 1b.3.9 Matagorda Country ospital District Taxes and Fe 15.3 Subtotal Period lb Collateral Costs 2.260 958 Period lb Period-Depandent Costs 1b.4.1 Decon supplies 29 1b.4.2 Insurance 1b.4.3 Health physics supplies 282 1b.4.4 Heavy equipment rental 212 1b.4.5 Disposal of DAW generated b1.4.6 Plant energy budget 1 b.4.7 NRC Fees Ib.4.8 Emergency Planning Fees 11b.4.9 Spent Fuel Pool O&M 1b.4.10 ISFSI Operating Costs 15.4.11 Secuity Staff Cost lb.4.12 DOC Staff Cost 15.4.13 Utility Staff Cost 1b.4 Subtotal Peoiod 1 b Period-Dependent Costs 29

.494 tb.0 TOTAL PERIOD 1 b COST 2,896 1,452 PERIOD I TOTALS 2,896 2,367 PERIOD 2a - Large Component Removal Period 2a Direct Decommissioning Activities Nuclear Steam Supply System Removal 2o.1. t.1 Reactor Coaownt Piping 144 15i 2a.1.1.2 Pressurizer Relief Tank 21 18 2a.1.1.3 Reactor Coolant Pumps & Motors 71 58 2a.1.1.4 Pressuizer 24 34 2a.1.1.5 Steam Generators 281 2,901 2a.1.1.6 Retired Steam Generator Units 2a.1,1.7 CRDMs/ICls/Service Structure Removal 96 57 2a.1.1.8 Reactor Vessel Internals 74 1.923 2a.1.1.9 Reactor Vessel 52 3.724 2a,1.1 Totals 763 8.867 Removal of Major Equipment 2a.1.2 Main Turbine/Generatar 102 2a.I.3 Main Condensers 534 Cascading Costs from Clean Building Demolition 2a.1.4.1 Reactor 924 2a.1.4.2 Mechanical & Electrical Auxiliary 509 2a.1.4.3 Fuel Handling 252 Off-site LLRW INRC Spent Fuel Sit.

Processed Burial Volumes Burial

/IUtility and Packaging Transport Processing Disposal Other Total Total Lic. Term.

Management Restoration Volume Class A Class B Class C G0CC Processed Craft Contractor Costs Costs Costs Costs Costs Contingency Costs Costs Costs Costs Cu. Fee Cs. Feet Cu. Feet Cu. Feet Cu. Feet Wt., Lbs.

Manhours Manhours 11.787 2,138 13,924 13.924 84 "

273 84 273 829 1,090 8,384 667 S -

281 1.090 10.161 664 26 1.401 129 139 507.

32 428 3,990 11,583 26 18,843 1,116 43,429 1.159 100,533 142 1,087

, 1,087 124 953 953 358 1,878 1,878 0

2 2

143 1.100 1,100 186 1,430 1.430 1,258 9,642 667 667 281 281 2.212 17,038 7,396 7

37 37 66 730 730 71 353 353 32 244 244 8

45 45 210 1,611 1,611 13 142 142 14 153 76 582 5

36

64.

492 492 599 4.589 4.589 1,733 13.286 13,286 2,897 22.301 21,529 7.946 57.209 46,224.

16,178 123,522 92,154 9,642 9,642 479 852 479 852 123,248 259 123,248 259 10 2

10 2

94 275 110 279 366 153 582 36 772 366 10,414 571 845 852 30.385 983 1,463 852 7,320 12 13,743 64,486 223.057 7.320 12 301.286 130.568 1,338 334.529 142,927 1,359 873,396 23 32 312 195 807 857 1.185 143.269 8.530 7

10 88 39 183 183 365 40,513 1.189 42 59 128 1.428 439 2.226 2,226 443 5.712 967,806 4,074 328 817 544 267 1.713 1,713 2,175 240,508 2.341 2,534 2,016 2,934 5,.554 3,250 19.472 19.472 51,348 22,217 4,500.407 23,235 2,050 1,716 1,972 2,934 5,421 2.263 14,306 14,306 51.348 21.685 4.239.824 10,800 1,425 185 57 193 137 726 726 3,936 88,569 4,400 6.447 694 6 6.919 212 6.756 23,025 23,025 1,377 412 861 314,544 28.867 1.287 1.359 398 7,069 212 6,824 19.638 19.638" 7,750 2,128 1,069,368 28.867 1,287 12,641 5,754 5.997 27,529 424 20,171 82,146 82,146 103.139 66.402 2.541 861 11.604,810 112,302 6,048 15 117 80 615 117 615 3.298 16.323 13,446 8,223 3,461 139 1,062 1,062 76 586 586 38 290 290 TLG Services, Inc.

South Texas Project Electric Generating Station Decommissioning Cost Analysis Document 830-1564.002, Rev. 0 Appendix C, Page 7 of23 Page 3 of 6 Table C-A South Texas Project Electric Generating Station, Unit I DECON Decommissioning Cost Estimate (thousands of 2007 dollars) 0-ff-Site LLRW NRC Spent Fuel sito Processed Burial Volumes Burial I Utility snd Activity Becon Removal Packaging Transport Processing Disposal Other Total Total Lic. Term.

Management Restoration Volume Class A Class B Class C GTCC Processed Craft Contractor Index Actlvlty Description Cost Cost Costs Costs Costs Costs Costs Contingency Costs Costs Costs Costs Cu. Feet Cu. Feet Cu. Feet Cu. Feet Cu. Foot Wt., Lbs.

Manhours Manhours Disposal of Plant Systems (continued) 2b.1.1.39 Nonradioactive Dms & Smtps (DR) 26.1.1.40 Nonradioactive Dns & Smtps (DR) RCA 2b.1.1.41 Open Loop Auxiliary Cooling (OC) 2b.1.1.42 Radioactive Vents & Drains (ED) 2b.1.1.43 Reactor Head Degassing (RD) 21,*11.44 Reactor Makeup Water (RM) 2b.1.1.45 Residual Heat Removal (RH) 2b.l.t.46 Safety Injection (Si) 2b..1.47 Service Air (SA) 2b.1,1.48 Service Water (TW) 2b.1.1.49 Sodium Hypochiodta (SH) 2b.11b50 Standby DG Fuel Oil Strg & Tmsfr (DO) 2b.1.1.51 Standby Diesel Gen Starting Air (SD) 2b.1.1.52 Standby Diesel Generator (DG) 2b.1.1.53 Standby Diesel Generator Bldg HIVAC (HG) 2b.1.1.54 Standby Diesel Generator Lube Oil (L.)

21.1t1.55 Standby Diesel Jacket Water (JW) 2b.1.1.56 Turbine Generator Building (XT) 2b.1.1.57 Turbine Generator Building HVAC (HT) 2b.1.1.58 Turbine Gland Seal (GS) 2b.1.1 Totals 2b.1.2 Scaffolding in support of decommissioning Decontamination of Site Buildings 2b.1.3.1 Reactor 2b.1.3.2 Mechanical & Electrical Auxiliary 2b.1.3 Totals 2b.1 Subtotal Period 2b Activity Costs Period 26 Additional Costs 2b.2.1 Spare RX closure head 2b.2 Subtotal Period 2b Additional Costs 83 256 323 530 44 208 310 201 746 76 14 13 37 17 121 50 7

5 25 176 22 1,708 12,697 31 35 4

12 98 200 1,054 40 222 244 40 130 307 5

32 30 20 238 42 93 190 783 219 1,061 1.447 1,511 14,433 5,651 12 96 167 960 48 371 238 1,260 25 140 102 622 454 2,131 763 4.456 11 88 2

16 2

1i 6

42

2.

19 18 139 7

' 57 1

8 1

6 4

28 26 203 3

25 7,718 44,973 960 1.280 140 622 2,131 4.456 96 371 2,971 1,249 1.734 1,569 426 172 3.181 237 2,548 4.008 14,465 7.709 88 16 15 42 19 139 57 8

6 28 203 25 3,102 193.155 30,164 2,231 139 9,125 6,629 4,455 5.025 13,580 11,654 3,102 208,966 41,956 2,932 232.693 6.870 11,419 211.210 15,149 31,034 1.330 148,597 6,436 462.821 7.567 1.251.132 23,305 2,701 493 438 1.200 557 4,148 1,806 242 174 785 6,465 746 10,436,170 414,401

-112,845 55,965 995.610 48,143 677,827 37,395 1,673,437 85,538 12.222,450 555,904 201,821 2.160

-201,821 2.160 41,871 1,553 47 15 185 27 899 786 146 167 682 752 882 476 107 142 333 1 266 1.781 1,262 253 329 1,015 1,018 3,489 15,712 1.354 1.855 15,633 6,696 430 2.256 2,256 979 4.430 4,430 709 2,916 2,916 1,688 7,346 7,346 9,835 54.575 51,473 188 54 188 54 795 30 230 1,298 1,298 795 30 230 1,298 1,298 1,949 1,949 249 249 Perind 26 Collateral Costs 2b.3.1 Process liquid waste 351 2b.3.2 Smail tool allowance 344 2b.3.3 Spent Fuel Capital and Transfer 2b,3.4 Survey & Release Scrap 2b.3.5 Matagorda County Taxes and Fees 2b.3.6 Malagorda County Hospital District Taxes and Fe 2b.3 Subtotal Period 2b Collateral Costs 351 344 267 868 2,840 26,585 561 416 176 2,840 27,738 1,043 5,370 52 396 3,986 30,573 84 645 416 176 5,166 37,576 267 868 Period 2b Perinod-Dependent Costs 2b.4.1 Decon supplies 2b.4.2 Insurance 2b.4.3 Health physics supplies "2b.4.4 Heavy equipment rental 2b.4.5 Disposal of DAW generated 2b.4.6 Plant energy budget 2b.4.7 NRC Fees 2b.4.8 Emergency Planning Fees 2b.4.9 Spent Fuel Pool O&M 2b.4.10 Radwasto Processing Equipment/Services 2b64.11 ISFS Operating Costs 2b.4.12 Security Staff Cost 1,438 3,659 5,102 216 44 564 359 1,797 1.244 124 1,368 915 4,574 765 5,868 169 993 2.548 382 2,930 839 84 923 675 68 743 2,456 368 2,824 456 69 526 153 23 177 2,035 305 2,341 5,370 396 645 416 176 7,003 1.797 1.368 4,574 5,868 993 2,930 923 526 2,341 30,573 30.573 8,055 4,250 4,250 350.377 829 350.377 829 161,103 272 743 2,824 177 65,353 TLG Services, Inc.

South Texas Project Electric Generating Station Decommissioning Cost Analysis Document 830-1564-002, Rev. 0 Appendix C, Page 15 of 23 Page 4 of 6 Table C-2 South Texas Project Electric Generating Station, Unit 2 DECON Decommissioning Cost Estimate (thousands of2007 dollars)

IActivity Off-Site LLRW NRC Spent Fuel Site Processed Burial Volumes Burial I Utility andi Deaon Removal Packaging Transport Processing Disposal Other Total Total Lic. Term.

Management Restoration Volume Class A Class B Class C GTCC Processed Craft Contractor fl,,t Cant Caete Caere Cant.

lent.

Costn Cntin'aenttv Contn Cosntn Cent.

Cant.

Ca Foor CJFnt Ca! Pnt Cu Faur CF.l. :t WI lha Maanha,,,

Mnnh,,orI I

InM*Y A*IWI* I IAq*MNr INn n

A m r o

Cos C n inn "-I costs.

st W

Lb Iaho Period lb Additional Costs 1b.2.1 Site Characterization 1b.2.2 Spent fuel pool isolation 1b.2 Subtotal Period lb Additional Costs Period 1 b Collateral Costs 1b.3.1 Decon equipment tb.3.2 DOC staff relocation expenses lb.3.3 Process liquid waste lb.3.4 Small tool allowance lb.3.5 Pipe cutting equipment Ib.3.6 Decon rig 1 b.3.7 Spent Fuel Capital and Transfer 1b.3.8 Matagorda-County Taxes and Fees lb.3.9 Matagorda County Hospital District Taxes and Fe lb.3 Subtotal Period lb Collateral Costs Period 1o Period-Dependent Costs lb.4.1

. Decon supplies 1b.4.2 Insurance 1b.4.3 Health physics supplies 1 b.4.4 Heavy equipment rental 1b.4.5 Disposal of DAW generated 1b.4.6 Plant energy budget 1 b.4.7 NRC Fees lb.4.8 Emergency Planning Fees I b.4.9 Spent Fuel Pool O&M 1b.4.10 ISFSI Operating Costs I b.4.11 Security Staff Cost 11.4.12 DOC Staff Cost tb.4.13 Utility Staff Cost tb.4.

Subtotal Period lb Period-Dependent Costs 1b.0 TOTAL PERIOD 1b COST PERIOD 1 TOTALS PERIOD 2a - Large Component Removal Period 2a Direct Decommissioning Activities Nuclear Steam Supply System Removal 2a.1,.1.

Reactor Coolant Piping 2a.1.1.2 Pressudzer Relief Tank 2a.1.1.3 Reactor Coolant Pumps & Motors 2a.l.1,4 Pressurizer 2a.l.1.5 Steam Generators 2a.1.1.6 Retired Steam Generator Units 2a.1.1.7 CRDMs/ICls/Service Strocture Removal 2a..1.8 Reactor Vessel Internals 2a.I.1.9 Reactor Vessel 2a.1.1 Totals Removal of Major Equipment 2a 1.2 Main Turbine/Generater 2a,1,3 Main Condensers 1,054 6.214 7,268 945 72 2

957 1,243 2,260 958 29 282 212

.29 494 2,900 1,453 2,900 2,367 153 161 22 19 71 58 24 34 298 2,901 102 63, 79 1.923 55 3,724 803 8,884 829 84 273 1,074 7,755 422 178 84 273 1,074 9,183 664 10 2

26 1,401 129 139 507 32 2,469 3,990 11,5953 10 2

26 20,884 94 275 1,099 38,465 110 279 1,143 94.760 23 32 3112 7

10 88 42 59 128 1,426 328 517 544 2,534 2,016 2,934 5,554 1,716 1.972 2,934 5,421 185 57 193 6.447 694 6,914 212 1,359 398 6,995 212 12.641 5.754 5,997 27,449 424 316 1,370 1,370 932 7,147 7,147 1,248 8,517

. 8,517 142 1,087 1,087 124.

953 953 354 1,857 1,857 0'

2 2

143 1,100 1,100 186 1,430 1,430 1,163 8.918 422 422 178 178 2,113 15,946 7,028 7

37 37 66 730 730 71 353 353 32 244 244 8

45 45 210 1,611 1,611 13 142 142 14 153 76 582 5

36 370 2,840 2,840 599 4,559 4,589 1,733 13,286 13,286 3,203 24,648 23,876 7,040

-. 51,325 41,391 15,254 116,813 87,645 252 883 883 40 187 187 439 2,226 2,226 267 1.713 1.713 3,259 19,497 19,497 2,263 14,306 14,306 142 741 741 6,756 23,024, 23,024 6,789 19,532 19,532 20,156 82,108 82,108 8,918 8,918 153 582 36 479 852 479 852 366 366 845 852

- -1,463 852 121,094 259 121,094 259 7,320 12 79,286 64,486 223,057

.7,320 12 366,829 128,414 1,338 381,057 140,773 "1,359 1,007.051 772 9,690 28,747 244 421 1,185 143,269 8,530 365 40,513 1,189 443 5,712 967,806 4,074 2,175 240,508 2.341 51,348 22,217 4,500,407 23,235 2,050 51,348 21,685 4,239,824 10,800 1,425 3,936 88,569 4,400 1.377 412 861 314,544 28,867 1,287 7,750 2,128 1,069,368 28,867 1,287 103,139 66,402 2,541 861 11,604,810 112,302 6,048 102 534 15 117 80 615 117 615 3,298 16,323 TLG Services, Inc.

South Texas Project Electric Generating Station Decommissioning Cost Analysis Document S30.1564-002, Rev. 0 Appendix C, Page 18 of 23 Page 5 of 6 Table C-2 South Texas Project Electric Generating Station, Unit 2 DECON Decommissioning Cost Estimate (thousands of 2007 dollars)

Attinit Off-Site LLRW NRC Spent Fuel Site Processed Burial Volumes Burial I Utility and Decon Removal Packaging Transport Processing Disposal Other Total Total LIc Term.

Management Restoration Volume Class A Class B Class C GTCC Processed Craft Contractor Cost Cost Costs Costs "Costs Costs Costs Continsencs Costs Costs Costs Costs Co. Poet Co. Foot Co. Feet Co. Foot Co. Foot Wt.. Lbss, Monhoors Monboors I

IIIUUA

• MVlLy *U*t I*tlUI L n ex Cost Cast Costs Costs Costs Costs Costs Contingen Cast.

ýosts Costs Costs Cu. Feet Cu. Feet Cu. Feet Cu. Feet Cu. Feet Wt. Lbs.

Manhours an ours Disposal of Plant Systems (continued) 2b.1.1.34 Main Steam (MS) 2b.I.1.35 Main Steam (MS) RCA 2b.1.1.36 Main Turbine & Lube Oil (LT/TM) 2b.1.1.37 Mechrnical Auxiliary Bldg HVAC [HM) RCA 2b.1.1.38 Mechanical Auxiliary Building (XM) 2b.I.1.39 Miscellaneous "rains (MD) 2b.1.1.40 Miscellaneous HVAC (HZ) 2b.1.1.41 Misceltanmus HVAC (HZ) RCA 2b.1.1.42 Miscellaneous Reactor Coolant (RC) 2b.1.1.43 Miscellaneous Yard Areas & Bldgs (XY) 2b.1.1.44 Nonradioactive Dins & Stmps (DR) RCA 2b.1.1.45 Nonradioactive Plumbing Dms & Smps (OR) 2b.1.1.46 Oily Waste (OW) 2b.1.1.47 Radioactive Vents & Drains (ED) 2b.1.1.48 Reactor Head Degassing (RD) 2b.1.1.49 Reactor Makeup Water (RM) 2b.1.1.50 Residual Heat Removal (RH) 2b.1.1.51 SG Sludge Lancing & Chem Creanlng (SL) 2b.1.1.52 Safety Injection (SI) 2b.1.1.53 Secondary Process Sampling (SS) 2b.I.1.54 Service Air (SA) 2b.1.1.55 Service Water (TW) 2b.1.1.56 Standby DG Fuel Oil Strg & Trnsfr (DO) 2b.1.1.57 Standby Diesel Gen Starting Air (SD) 2b.1.1.58 Standby Diesel Generator (DG) 2b.1.1.59 Standby Diesel Generator Bldg HVAC (HG) 2b1.1 1.60 Standby Diesel Generator Lube Oil (LU) 2b.1.1.61 Standby Diesel Jacket Water (JW) 2b.1.1.62 Turbine Generator Building (XT) 2b.1.1.63 Turbine Generator Building HVAC (HT) 2b.1.1.64 Turbine Gland Seal (GS) 2b.1.1 Totals 2b.1.2 Scaffolding in support of decommissioning Decontamination of Site Buildings 2b.1.3.1 Reactor 2b.,.3.2 Mechanical & Electrical Auxiliary 2b.l.3 Totals 2b.1 Subtotal Period 21 Activity Costs Pettod 2b Additonal Costs 2b.2.I Spare RX closure head 2b.2 Subtotal Period 21 Additional Costs 259 29 86 1,364 161 40 ill 23 21 204 2,085 300 89 202 563 51 239 310 200 0

966 35 101 61 36 16 ill 50 4

4 105 182 28 1,707 16,957 1,691 5

7 64 29 71 140 1,932 159 2

5 71 4

1 2

34 2

49 57 139 465 34 43 228 269 35 40 125 306 5

5 33 32 12 21 255 41 92 89 187 745 201 226 1,121 1,481 962 1,317 11,396 5,649 47 15

.185 27 39 298 26 159 159 13 99 699 4,366 4,366 53 296 296 6

45 17 127 12 74 74 212 1,148 1,148 313 2,398 186 1,059 1,059 13 103 30 233 245 1,314 1,314

,27 153 153 112 680 680 442 2,064 2,064 0

9 834 4,828 4,828 5

40 15 118 9

70 5

41 2

18 17 128 7

57 1

4 1

5 16 121 27 209 4

29 7,883 45,870 38,685 464 2.428 2,428 1.018 4,571 4,571 743 3.030 3,030 1.761 7,600 7,600 10,108 55,898 48.713 230 1,290 1,298 230 1,298 1.298 1,019 5,242 5,242 66 506 506 3,292 25,240 87 664 664 304 304 130 130 47 363 363 4,511 32,450 7,210 298 852 150 99 g 25,859 812 9-44 21 45 127 449 12 1.854 2,422 2,398 3.053 1,375 103 233 1.672 1,564 437 181 3,410 230 2,501 3,810 0

15,003 7,882 40 116 70 41 18 128 57 4

5 121 209.

29 7.185 152,507 30,154 2,231 139 9,125 68629 4,455 5,025 13,580 11.654 7,185 168,318 41.946 9,094 48,060 794 2,904 1,123,019 28,436 40,236 4,385 1,376 3,966 19,323 447 288,607 6,654 70.812 247,284 7,508 3,149 7,103 208,197 15,031 32.245 1,430 157,301 6,872 443,218 7,000 8

1,288,472 28,132 1,187 3,619 2,112 1,166 534 3,794 1,815 124 14 3,516 6,685 877 8,784,640 528,631 112,845 55,966 995,610 48,143 677,827 37,395 1,673,437 85,538 10,570,920 670,135 955 830 146 187 682 752 936 500 107 142 333 266 1,894 1,330 253 329 1,015 1,018 3,600 19,978 1,262 1,660 12,595 6,694 188 54 795 30 168 54 795 30 1,940 201,821 2.160 249 1949 201,821 2,160 249 Period 25 Collateral Costs 2b.3.1 Process liquid maste 358 2b.3.2 Small tool alloance 440 2b.3.3 Spent Fuel Capital and Transfer 2b.3.4 Survey & Release Scrap 2b.3.5 Matagorda County Taxes and Fees 2b.3.6 Matagorda County Hospital Oistdict Taxes and FE 2b.3.7 Severance 2b.3 Subtotal Period 2b Collateral Costs 358 440 267

• 866 267 866 2,733 21,948 577 304 130 316 2,733 23,276 25,240 25.240 4,243 4,243 336,451 827 336,451 827 TLG Services, Inc.

South Texas Project Electric Generating Station Decommissioning Cost Analysis Document S30.1564-002, Rev. 0 Appendix C, Page 21 of 23 Page 6 of 6 Table C-2 South Texas Project Electric Generating Station, Unit 2 DECON Decommissioning Cost Estimate (thousands of 2007 dollars)

Off-Site LLRW NRC Spent Fuel Site Processed Burial Volumes Burial I Utility and Activity Decon Removal Packaging Transport Processing Disposal Other Total Total Lic. Term.

Management Restoration Volume Class A Class B Class C GTCC Processed Craft Contractor Index Activity Description Cost Cost Costs Costs Costs Costs Costs Contlinency Costs Costs Costs Costs Cu. Feet Cu. Feet Cu. Feet Cu. Feet Cu. Feet Wt., Lbs.

Macboors Monhours PERIOD 2 TOTALS 7,899 62,391 15,620 9,540 26,628 41.392 233,441 76,940 473,851 399,799 62.292 11,760 378,116 142,098 2,541 861 28,284,790 1,331,478 2,801,520 PERIOD 3b -Site Restoration Period 3b Direct Decommissioning Activities Demolition of Remaining Site Buildings 3b.1.1.1 Reactor 3b.1.t.2 Basins 30.1.1.3 Circulating Water Intake & Discharge 3b.1.1.4 Diesel Generator 3b.1.1.5 Essential Cooling Pond/Intake/Discharge 3b.1.1.6 Isl Valve Cubicle & Aux Fdwr Strg Tnk 3b.1.1.7 Maintenance Operations Facility 3b.1.1.8 Mechanical & Electrical Auxiliary 3b.1.1.9 Miscellaneous Slabs, Foundations & Pads 3b.1.1.10 Miscellaneous Yard Buildings 3b.1.1.11 Nuclear Support Center 3b.1.1.12 Nuclear Training Facility & Annex 3b,1.1.13 Reactor vessel head storage 3b.1.1.14 Sewage Treatment Plant 3b.1.1.15 Steam Generator Mausoleum 3b.1.1.16 Tank Pads & Foundations 3b.1.1.17 Transformer Pads 3b.I.1.18 Trenches & Culverts 3b6.1.1.19 Turbine Generator 3b.1.1.20 Turbine Generator Pedestal 3b.1.1.21 Warehousns 3b.1.1.22 Yard Piping 3b.1.1.23 Fuel Handling 3b.1.t Totals Site Closeout Activities 3b.1.2 Remove Rubble 3b.1.3 Grade & landscape site 3b.1.4 Final report to NRC 3b.1 Subtotal Period 3b Activity Costs Period 30 Additional Costs 3b.2.1 Intake Cofferdam 3b.2.2 Discharge Cofferdam 3b.2.3 Concrete Processing 3b.2 Subtotal Period 36 Additional Costs Period 30 Collateral Costs 3b.3.1 Small tool allowance 3b.3.2 Spent Fuel Capital and Transfer 3b.3.3 Matagorda County Taxes and Fees 30b.3.4 Matagorda County Hospital District Taxes and Ft 3b.3.5 Severance 3b.3 Subtotal Period 30 Collateral Costs Period 3b Period-Dependent Costs 3b.4.1 insurance 3b.4.2 Heavy equipment rental 3b.4.3 Plant energy budget 5,488 81 2,380 781 618 684 373 4,606 803 2,004 535 301 81 54 286 106 136 1,739 2,264 886 3,022 361 2,285 29,870 823 "6,311 12 94 357 2,736 117 898 93 711 103 786 56 429 691 5,297 120 923 301 2,304 80 615 45 346 12 94 8

62 43 329 16 121 20 156 261 2,000 340 2,603 133 1.018 453 3.475 54 415 343 2,628 4,481 34,351 822 6,303 339 2,600 8

61 61 5,650 43,315 61 145 1,114 1,114 49 373 373 221 1.695 1.695 415 3.182 3,182 50 386 70 539 45 45 45 45 176 1,346 1,346 296 2,361 1,437 6,311 94 2,736 898 711 786 429 5,297 923 2,304 615 346 94 62 329 121 156 2.000 2,603 1,018 3,475 415 2,628 34,351 77,001 1,476 43,105 11.474 12,244 11,329 8.372 74,736 16,946

) 34,045 12,272 7,275 1,633 970 3,985 2,203 2,829 26,320 44,990 10,798 45,676 3,030 31,762 484,471 3,306 5,471 668 493,248 668 9,312 3.115 7,478 19,905 5,461 2,261 37,612 53 53 6,303 2,600 43.254 969 324

- 1,470 2,762 55 335 335 468 45 45 1,171 1,730 539 539 386 386 796 80 875 5,127 769 5,896 251 38 288 875 5,896 86 202 TLG Services, Inc.

ATTACHMENT 2 PROJECT EVALUATION AND APPROVAL Proprietary & Confidential Withhold from Public Disclosure Pursuant to 10 CFR 2.390 Non-Proprietary Version

Project Evaluation and Approval Non-Proprietary Page 1 of 5 N

$0 xls]Estlmate

/endor Svs Previous 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 20162

2017, 2021 2019 2020' 2021 2022 2023 2024 2025 2026 2027 Estimate Page 7

Non-Proprietary Project Evaluation and Approval Pagce 2

Pae2of 5 Project Description.

Storage Facility for Reactor Vessel Head CR Number 07-1642-RVOlON PIP No#

0 ESTIMATE ASSUMPTIONS Basis for estimate Construct long term storage facility for Reactor Vessel Head. Estimate based on commercial rates - no permitting, licensing included material rates from ENR A

publication indexes for 2007.

B Risk considerations Monitoring requirements, sumps, electrical commodities etc.

C Complexity Relatively simple construction - additional efforts for containing contamination D

Escalation factors Concurrence Signatures Unill Unit 2 Projects Date Signed Projects 2007 2007 PIP Supervisor Projects Schedule Manhours Field Engineer Estimate Manhours Project Manager Non Man Sup/

Training Craft dollars Health Phsysic MaterialtRental dolla Procedures STP Material Obsolescence Schedule Manhours Estimate Manhours STP INSTALLATION Craft dollars MM/Steve Blossom/Ron Korczynski EM Rudy Stastny/Dave Thornton I&C Jeff Lovejoy/Tony Vajdos AOV/MOV Brent Heraty/EdMatejoech WORKSHEET Desc Type Information Accuracy Avg Accuracy Rank Score SCOPE MATERIAL CONTRACTS Labor Estimate Page 7

Non-Proprietary Project Evaluation and Approval Page 3 of 5 Storage Facility for Reactor Vessel Head CR No#

07-1642-RVOION J LeValley PIP No#

0 Nagle Project Desctiption Project Requestor Estimator Estimate Page 7

Project Evaluation and Approval Storaqe Faclity for Reactor Vessel Head Project Risk Score Sheet for evaluating need of special management controls Non-Proprietary Page 4 of 5 0

Estimate Page7

Non-Proprietary Page 5 of 5 Project Evaluation and Approval Estimate Page 7

ATTACHMENT 3 ENERGYSOLUTIONS PROPOSALS Proprietary & Confidential Withhold from Public Disclosure Pursuant to 10 CFR 2.390 Non-Proprietary Version

Non-Proprietary ENERGYSOLUTIONS September 24, 2007 ES-2007-001056 Mr. Joe Sheppard South Texas Project P. O. Box 289 Wadsworth, TX 77483

Dear Mr. Sheppard:

EnergySolutions is pleased to provide the attached proposal in response to our discussions.

EnergySolutions has been providing large component transportation and disposal services for over 20 years and is confident that we have offered the most efficient and cost effective option for STP.

Please note that EnergySolutions' proposal shall remain valid for STP's acceptance for a period of 60 days from the date of this letter. If you have any questions concerning our proposal or need additional information, please don't hesitate to contact me:

We appreciate the opportunity to bid on this work and look forward to talking with your further about our offer.

Office:

803-758-1827 Cell:

803-960-3619 Fax-803-758-1834 Email:

mslewis duratekinc.com Sincerely, Mark S. Lewis Regional Vice President and Director Logistics and Engineering Services MSL/jtg (P-2007-015) 140 Stoneridge Drive Columbia, South Carolina 29210 http://www.enercg Solutions.com

Non-Proprietary

~N PGSOUTJONS A PROPOSAL To STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATiON AND DisPosAL OF'STEAM GENERATORS FROMTHE SOUTH TEXAS PROJECT(STP)

J SECTION 1.0 EXECUTIVE

SUMMARY

1-i (P-2007-01 5)

ES-2007-001056 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of Energy Solutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

ENE£RGX SOLUTIONS Non-Proprietary A PROPOSAL To STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DiSPOSAL'OF STEAM GENERATORS FROMTHE SouTH TEXAS PROJECT (STP)

SECTION 1.0 - EXECUTIVE

SUMMARY

EnergySolutions proposes the early disposal of the eight (8) steam generators (SGs) currently stored in a mausoleum at the two-unit STP Electric Generating Station (STP). An analysis has been performed to compare the costs of early disposal with the costs of postponing disposal until the units shut down and are decommissioned. This analysis demonstrates the economic advantages of early disposal and supports the use of STP's nuclear.Decommissioning Trust Fund (DTF) for the removal of the major components from the site in advance of shut down at the site. The net effect will be to reduce the overall cost to decommission the site and make more funds available to decommission the reactors at the time the reactors shut down.

Because it would reduce the eventual cost and complexity of decommissioning the facility, the use of DTF for prompt disposal of the major components is in the public interest as well as STP's interest In addition to the economic advantages, early disposal will facilitate the decommissioning process so that:

(1)

The radioactive source term (contaminated SGs) will be reduced; (2)

The site workers will be exposed to less radiation; and (3)

An unnecessary management and regulatory burden can be eliminated.

Therefore, there are compelling operational, regulatory, safety, and cost advantages to proceeding with early removal of the SGs.

1.1 ECONOMIC ADVANTAGE The STP licenses are projected to expire in 2027 and 2028 with the disp 1-2 (P-2007-015)

ES-2007-001056 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

Non-Proprietary A PRoPosAL To STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL OF STEAM GENERATORS FROM THE SouTH TEXAS PROJECT (STP)

EN ERGF

.SOLUTIOnS 1.2 PROJECT APPROACH EnergySolutions will perform the engineering, transport, and disposal of the eight (8) old SGs, currently stored in an on-site mausoleum from STP to the EnergySo/utions'Disposal Site in Clive, Utah.

M]

earn Generator Kemoval from Mausoleum 1-3 (P-2007-015)

ES-2007-001056 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

Non-Proprietary A PROPOSA.L To STP NUCLEAR OPERATING COWANY FOR TRANSPORTATION AND DISPOSAL OF STEAM GENERATORS FROMTHE SouTH TEXAS PROJECT (STP)

EN ERGYSOLUTIONS 0

El 1.3 TECHNICAL BENEFITS TO STPNOC M

For example, since 2004, the Clive facility has received and disposed of over 3.4 million pounds of large components from U.S. nuclear plants proceeding with decommissioning.

a Focus on Safety. EnergySolutions has an excellent safety record, with zero recordable injuries and no Notices of Violation (NOVs) or audit findings on more than 75 large component moves. Attention to safety on all work activities assures STP of no incidents and protection of the workers, public, and the environment.

1-4 (P-2007-015)

ES-2007-001056 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of Energy Solutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

ENE RGcSOLUTIaYS Non-Prpoprietary A PROPOSAL To STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL OF STEAM GENERATORS FROMTHE SouTm TEXAS PROJECT (STP)

Proven Plans, Procedures, and Work Control Process: Application of an approach based upon our previous field proven practices and use of previous documents associated with similar large component projects, including SG projects, will expedite project planning and assures safe, compliant, timely project execution.

Dedicated Large Components and Licensing Organization: Dedicated organization with expertise in all aspects of large component disposal, including capabilities to perform radiological characterization, waste characterization, structural analysis, packaging/transport/shielding design, U.S. Department of Transportation (DOT)/NRC Special Permitting, etc. This provides the capability to plan, staff, and conduct all critical tasks associated with this project as required, with depth of personnel and multi-disciplinary skills facilitating completion of key design, analysis, and reporting activities.

'o Familiarity with Clive Site and Disposition Criteria: As the operator of the Clive Site, EnergySolutions is thoroughly familiar with all permits, communication, logistics, and waste acceptance criteria (WAC) associated with Clive disposal. This assures STP of successful approval and acceptance of the SGs at the Clive Site.

a Capability to Handle Miscellaneous Waste: In the event that additional miscellaneous waste is generated, the waste can be shipped directly to Clive or the EnergySolutions' Bear Creek Operations low-level waste processing facility in Oak Ridge, Tennessee for incineration, compaction, baling, metal melting, and other waste volume reduction technologies and methods to readily receive and process the STP miscellaneous waste.

1.5 Tables 1.1 and 1.2 show 1-5 (P-2007-015)

ES-2007-001056 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

Non-Proprietary A PROPOSAL TO STP NUCLEAR OPERATING COMP/ANY FOR TRANSPORTATION AND DISPOSAL OF STEAM GENERATORS FROM THE SouTH TEXAS PROJECT (STP)

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SUMMARY

EnergySolutions assures STP of an experenced engineering, radioactive material management, and transportation disposal firm with the depth of expertise, safety focus, and the ready capability to perform the STP SG disposition project safely and efficiently with minimal impact to normal station operations. We will work in partnership with STP to maintain the plans defined in this offer through project commencement and completion, as well as, continue to investigate other more cost-effective solutions. EnergySolutions offers the flexibility to alter transportation methods, transportation route, process methods, and disposal locations prior to implementation in the event conditions change that limit performance or cheaper options become available.

We will gladly discuss all aspects of our approach with STP and welcome an opportunity to provide a presentation, at your convenience, highlighting the benefits of our project approach.

1-6 (P-2007-015)

ES-2007-001056 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

XN ERGYSOL LIONS Non-Proprietary A PROPOSAL To STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL OF STEAM GENERATORS FROM THE SouTH TEXAS PROJECT (STP)

SECTION 2.0 TECHNICAL APPROACH 2-1 (P-2007-015)

ES-2007-001056 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

EN ERGNSOL.UTIONS Non-Proprietary A PROPOSPa. To STP NUCLEAR OPERATING COIVMPANY FOR TRANSPORTATION AND DISPOSAL OF STEAM GENERATORS FROM THE SouTH TEXAS PROJECT (STP) 2.0 - TECHNICAL APPROACH

2.1 INTRODUCTION

EnergySolutions evaluated all feasible options for the disposition of STP's SGs, taking into consideration the technical and regulatory requirements and our understanding of the overall project goals and objectives. EnergySolutions evaluated each option based on the following factors:

U Safety.

Price:

Schedule:

Liability:

Regulatory.

Radiological and industrial safety hazards; The overall price versus the value STP would receive; The impact the option would have on the overall project schedule; The potential long-term liability issues associated with the option; and Minimizing risks associated with approvals and permits for off-site transportation, processing and disposal.

2.2 PROJECT ORGANIZATION EnergySolutions personnel are the nation's leading experts at safely handling complex transportation and logistical challenges, routinely transporting thousands of loads over six million miles across the United States each year. We are the most experienced transporter and disposer of large components, having transported over 75 components with many being multi-modal projects (rail, barge and highway) and disposed of over 90 components.

A primary and critical factor of our success and ability to perform this type of work is the caliber of people we utilize to manage these types of projects and the competent support personnel and infrastructure we possess (QA, Licensing, Engineering, Regulatory Affairs, etc.).

Our proposed organization is provided in Figure 2.1.

2-2 (P-2007-015)

ES-2007-001056 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of Energy Solutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

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)56 2-3 (P-2007-015)

ES-2007-0010C Proprietary Information. All writings, drawings, specifications and other data furnished by EnergySolutions at any time are the property of EnergySo/utions and shall be treated as confidential. Such materials shall not be used to the detriment of Energy Solutions and disclosure to third parties of them or information derived from them is forbidden, The materials must be returned to Energy Solutions upon request.

Non-Proprietary NN LGSOL L[TIay'S A PROPOSAL TO STP NUCLEAR OPERATING COMWANY FOR TRANSPORTATION AND DISPOSAL OF STEAM GENERATORS FROMTHE SouTH TEXAS PROJECT (STP) 2.3 DESIGN AND FABRICATION 2.3.1 Figure 2.2-Typical Transportation Saddles 2.3.2 2.3.3 2.-34 2-4 (P-2007-015)

Proprietary Information All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

EN, F RCYSOLL'TItAS Non-Proprietary A PROPOSAL To STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DOSPOSAL OF STEAM GENERATORS FROM THE SouTH TEXAS PROJECT (STP) 2.4 REGULATORY WORK EnergySo/utions will perform the regulatory work discussed in this section to support the off-site transportation and disposal of the SGLAs at our Clive, Utah disposal facility.

2.4.1 U.S. DOT SPECIAL PERMIT EnergySolutions has obtained a Special Permit from the U.S. DOT for the packaging and transport of radioactive SGs, although the Special Permit requires the performance and documentation of compliance analysis. Subject to the limits of the Special Permit, EnergySolutions will be able to package and transport SGs from anywhere in the United States and will use this permit to transport the STP SGLAs. Based on station specific data provided by STP, EnergySolutions will perform the required analysis and prepare the necessary documentation to demonstrate that the STP SGLAs comply with the DOT Special Permit.

EnergySolutions will take the lead role in this activity. Table 2.1 below presents a responsibility matrix for demonstrating compliance with the U.S. DOT Special Permit.

2.4.2 DISPOSAL APPROVAL PRocEss I

I 1 Although not included as part of this proposal, EnergySolutions can perform these activities for STP.

2-5 (P-2007-015)

Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

EN ERGYSOLUTIOIS Non-Proprietary A PROPos.

To STP NUCLEAR OPERATING COIVAN Y FOR TRANSPORTATION AND DISPOSAL OF STEAM GENERATORS FROMTHE SouTH TEXAS PROJECT (STP)

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2 EnergySolutions has obtained a preliminary clearance from the railroads for transport of the STP SGLAs from Buckeye rail spur to Clive, UT. A final clearance will be requested 30 days prior to the shipment and could be denied due to recent road or bridge work, thus affect the pricing and ability to perform the work as proposed.

2-6 (P-2007-015)

Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

EN ERGASOLUTIONS Non-Proprietary A PROPOSAL To STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL OF STEAM GENERATORS FROM THE SOUTH TEXAS PROJECT (STP)

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S FIGURE2.3 TRANSPORTATION SECURITY PLANNING 2.6 2.6.1 PRE-MOBMLIZATION 2-7 (P-2007-015)

Proprietary Inforrnation-All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

EN ERGYSOLUTIUVS Non-Proprietary A PROPOSAL To STP NUCLEAR OPERATING COIVPP1Y FOR TRANSPORTATION ANID DISPOSAL OF STEAM GENERATORS FROMTHE SOUTH TEXAS PROJECT (STP)

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2-8 (P-2007-015)

Proprietary Information. ADi writings, drawings, specifications and other data furnished by EnergySolutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

EN ERGYSOLUTIONS Non-Proprietary A PROPOSAL TO STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL. OF STEAM GENERATORS FROMTHE SouTH TEXAS PROJECT (STP)

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2-9 (PR2007-015)

Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential-Such materials shall not be used to the detriment of Energy Solutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

[ N ER GXSOLUTIONS Non-Proprietary A PROPOSAL TO STP NUCLEAR OPERATING COMiPNY FOR TRANSPORTAT1ON AND DISPOSAL OF STEAM GENERATORS FROM THE SOUTh TEXAS PROJECT (STP)

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2.65-PRAL TRANSPoRTATION ANt) DISPOSAL 2.7 MILESTONE SCHEDULE FIGURE 2.4 - SG SHIPM EN"T ENROUTrE TO CLIVE S

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2-10 (P-2007-015)

Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of EnergySo/utions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

Non-Proprietary E'

I-ENf G \\;SOL UTIoNyS A PROPOS.

ToSTP NUCLEAR OPERATING CONPANY FOR TRANSPORTATION AND DISPOSAL OF STEAM GENERATORS FROMTHE SouTH TEXAS PROJECT (STP)

SECTION 3A)

COMPENSATION ANDCOMMERCIAL TERMS 3-1 (P-2007-015)

EnergySolutions-2007-001056 Proprietary Information. All writings, drawings, specifications and other data furnished by EnergySolufions at any time are the property of Energy Solufions and shall be treated as confidential. Such materials shall not be used to the detriment of Energy Solutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

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EN ERGYSOLUTIONS Non-Proprietary A PROPOS,.

TO STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL OF STEAM GENERATORS FROMTHE SouTH TEXAS PROJECT (STP) 3.0 - COMPENSATION AND COMMERCIAL TERMS 3.1 COMPENSATION 3.2 MILESTONE PAYMENT SCHEDULE EnergySolutions suggests the proposed milestone payment schedule provided in Table 3.1 based on the percentage of work completed:

3.3 BASIS FOR BID 3-2 (P-2007-015)

EnergySolutions-2007-001056 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

EN ERGO SOLUTIONS Non-Proprietary A PROPOSAL To STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION ANO DISPOS.. OF REACTOR HEADS FROM SOUTH TEXAS PROJECT PROPOSAL TO STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL OF REACTOR HEADS FROM SOUTH TEXAS PROJECT SUBMITTED BY:

ENERGYSOLUTIONS 140 STONERIDGE DRIVE COLUMBIA, SC 29210 JANUARY 25, 2007 (P-2007-004)

ES-2007-001078 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solufions at any time are the property of EnergySolutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

Non-Proprietary E N,ERG YSOLUTIONS January 24, 2007 ES-2007-001078 Mr. Johnny Houston STP Nuclear Operating Company South Texas Project P. O. Box 289 Wadsworth, TX 77483

Dear Mr. Houston:

EnergySolutions is pleased to provide the attached proposal in response to your verbal request for the "Disposal of Retired Reactor Vessel Closure Head Services from the South Texas Project (STP).

EnergySolutions has been providing large component transportation and disposal services for over 20 years and is confident that we have offered the most efficient and cost effective option for STP. STP's recent Life of Plant (LOP) Agreement is designed specifically for wastes such as these reactor heads.

Please note that EnergySolutions' proposal shall remain valid for STP's acceptance for a period of 120 days from the date of this letter. If you have any questions concerning our proposal or need additional information, please don't hesitate to contact me:

We appreciate the opportunity to bid on this work and look forward to talking with your further about our offer.

Office:

803-758-1827 Cell:

803-960-3619 Fax:

803-758-1834 Email:

mslewis duratekinc.com Sincerely, Mark S. Lewis Regional Vice President and Director Logistics and Engineering Services MSL/jtg (P-2007-004) 140 Stoneridge Drive Columbia, South Carolina 29210 http:/iwww.energy Solutions.com

Non-Proprietary ENERY SOLUTIONS A PROPOSAL To STP NUCLEAR,OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL OF REACTOR HEADS FROM SOUTH TExAS PROJECT SECTION 1.0 - INTRODUCTION EnergySolutions is uniquely qualified to package, transport, and dispose of STP's old reactor heads.

Since our first project in 1992 to package, transport, and disposal of the Millstone steam generators, EnergySolutions has packaged, transported, and/or disposed of over 90 large components, which include reactor vessels, steam generators, reactor heads, pressurizers, heat exchangers, and turbine rotors. Our most recent reactor head disposition projects include the five (5),reactor heads from the Nuclear Management Corporation (NMC) plants and one (1) reactor head from the Millstone Unit 2 plants. The most recent Millstone project also included the pressurizer and two (2) turbine rotors.

Figure A-I is our suggested organization to accomplish this project is the same successful fashion.

SECTION 2.0 Page 1 ES-2007-001078 (P-2007-004)

Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of EnergySolutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request,

Non-Proprietary EN_

FRC ASOLL TIONS A PROPOSAL TO STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL OF REACTOR HEADS FROM SOUTH TEXAS PROJECT 2.1 2.2 Page 2 (P-2007-004)

ES-2007-001078 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of EnergySolutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

EN ERGYSOLUTIONS A PROPOSAL TO STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL OF REAC TOR HEADS FROM SOU TH TEXAS PROJECT Figure 1 Project Organization IZ~~IIIII K!

Page 3 z

0 0

CD CD (P-2007-004)

ES-2007-001078 Proprietary Information. All writings, drawings, specifications and other data furnished by EnergySolutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be retumed to Energy Solutions upon request.

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\\RGi SOLUTIONS A PROPOSAL. TO STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DtSPOSAL OF REACTOR HEADS FROM SouTH TEXAS PROJECT Figure 2 Page 4 z0 CD (

(P-2007-004)

ES-2007-001078 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

ENlrsj' EGSoLuTJNs APROPOSAL To STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL OF REACTOR HEADS FROM SouTH TEXAS PROJECT Figiure 3 Page 5 z

0

>fC (P-2007-004)

ES-2007-001078 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of Energy Solutions and disclosuretothi!rd parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

Non-Proprietary 7" i\\N SOL UTIONS A PROPOSAL TO STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL OF REACTOR HEADS FROM SouTH TEXAS PROJECT 2.3 I

Page 6 (P-2007-004)

ES-2007-001078 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of EnergySolutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

EN ERGYSOLUTIONS Non-Proprietary A PROPOSAL TO STP NuCLEAR OPERATING CONPANY FOR TRANSPORTATION AND DisPosAL OF REACTOR HEADS FROM SouTH TEXAS PROJECT 2.4 Schedule A Level 1 schedule can be provided upon receipt of more detailed outage schedule. In order to properly plan the project, EneraySolutions will require that STP finalize the start date and duration a mrnlnrnm *m r,{.

3.0 3.1 Page 7 (P-2007-004)

ES-2007-001078 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of EnergySolutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

Non-Proprietary APROPOSAL TO STP NUCLEAR OPERATING COMPANY FOR TRANSPORTATION AND DISPOSAL OF REACTOR HEADSFROM SOUTH TEXAS PROJECT EA LRG['SOLUTIONS 3.2 Page 8 (P-2007-004)

ES-2007-001078 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of EnergySolutions and shall be treated as confidential. Such materials shall not be used to the detriment of Energy Solutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

A PROPOSAL To STP NUCLEAR OPERATING COMPAN Y LN L RGYSOL o,.

SFOR TRANSPORTAllON.AND DISPOSAL OF

[SOREAC TOR HEADS FROM SOUTH TEXAS PROJECT ficlure:'4

° Page 9 z

0 zB (P-2007-004)

ES-2007-001078 Proprietary Information. AXI writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property f. Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of Energy Solutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

EN -RGXSOLUTIONS A PROPOSAL TO STP NUCLEAR OPERATING COMPAN Y FOR TRANSPORTATION AND DISPOSAL OF REACTOR HEADS FROM SOUTH TEXAS PROJECT Figure 5 0

C A

Page 10 z

0

>=r CD CD (P-2007-004)

ES-2007-001078 Proprietary Information. All writings, drawings, specifications and other data furnished by Energy Solutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of Energy Solutions and disclosure to third parties of them or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.

EN ERGXASOLUTIONS Non-Proprietary A PROPOSAL To0STP NUCLEAR OPERATING COPWANY FOR TRANSPORTATION AND DISPOSA.. OF REACTOR HEADS FROM SOUTH TEXAS PROJECT 4.0 COMPENSATION AND TERMS I_

Ua 5-.0 TIME & MATERIAL RATES The proposed Time & Material rates that would be applicable in the event that the project experienced a delay or stand down that was caused by parties other than EnergySolutions or EnergySolutions subcontractors are shown in Table G-2.

Page 11 (P-2007-004)

ES-2007-001078 Proprietary Informatiorn. All writings, drawings, specifications and other data furnished by EnergySolutions at any time are the property of Energy Solutions and shall be treated as confidential. Such materials shall not be used to the detriment of EnergySolutions and disclosure to third parties of themn or information derived from them is forbidden. The materials must be returned to Energy Solutions upon request.