ML082520575

Letter Request for Additional Information to Support the Review of the Pilgrim Nuclear Power Station Spent Fuel Management Plan Pursuant to 10 CFR 50.54(bb) and the Preliminary Decommissioning (TACs MD9416 and MD8036)

ML082520575
Person / Time
Site:	Pilgrim
Issue date:	09/12/2008
From:	James Kim Plant Licensing Branch 1
To:	Entergy Nuclear Operations
kim J, NRR/ADRO/DORL, 415-4125
References
FOIA/PA-2009-0026, TAC MD8036, TAC MD9416, FOIA/PA-2013-0151
Download: ML082520575 (7)

Text

September 12, 2008 Vice President, Operations Entergy Nuclear Operations, Inc.

Pilgrim Nuclear Power Station 600 Rocky Hill Road Plymouth, MA 02360-5508

SUBJECT:

REQUEST FOR ADDITIONAL INFORMATION TO SUPPORT THE REVIEW OF THE PILGRIM NUCLEAR POWER STATION SPENT FUEL MANAGEMNT PLAN PURSUANT TO 10 CFR 50.54(bb) AND THE PRELIMINARY DECOMMISSIONING COST ESTIMATE PURSANT TO 10 CFR 50.75(f)(3) (TAC NOS. MD8036 AND MD9416)

Dear Sir or Madam:

By letters dated June 7, 2007, and July 31, 2008, Entergy Nuclear Operations, Inc. (the licensee) submitted the Pilgrim Nuclear Power Station spent fuel management plan and preliminary decommissioning cost estimate respectively for review.

The Nuclear Regulatory Commission staff has been reviewing the submittals and has determined that additional information is needed to complete its review. The specific questions are found in the enclosed request for additional information (RAI). A response to this RAI is requested to be provided within 30 days.

Sincerely,

/RA/

James Kim, Project Manager Plant Licensing Branch I-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket No. 50-293

Enclosure:

As stated cc w/encl: See next page

ML082520575 OFFICE LPLI-1/PM LPLI-1/LA LPLI-1/BC NAME JKim SLittle MKowal DATE 9/11/08 9/11/08 9/12/08 REQUEST FOR ADDITIONAL INFORMATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION TO SUPPORT THE REVIEW OF THE PILGRIM NUCLEAR POWER STATION SPENT FUEL MANAGEMENT PLAN AND PRELIMINARY DECOMMISSIONING COST ESTIMATE Spent Fuel Management Program (SFMP) and Preliminary Decommissioning Cost Estimate (PDCE)

RAI No. 1: Section 5 of the SFMP, Financial Assurance and Section 1.7.1 of the PDCE, Spent Fuel Disposition Pilgrim stated in both Section 5 of the SFMP and in Section 1.71. of the PDCE, the cost associated with the isolation and continued operation of the spent fuel pool, and the construction and operation of the Independent Spent Fuel Storage Installation (ISFSI) would be covered by the decommissioning trust funds. The costs are identified in Table 5 and included in the decommissioning cost estimate in Table 8 of PDCE.

Withdrawals from decommissioning trust funds under 10 CFR 50.82(a)(8)(i)(A) are limited to legitimate decommissioning activities consistent with the definition of decommissioning. In addition, withdrawals under 10 CFR 50.82(a)(8)(i)(C) are not permitted if they would inhibit the ability of the licensee to complete funding of any shortfalls in the decommissioning trust needed to ensure the availability of funds to ultimately release the site and terminate the license. For the scenario that was indentified in Pilgrims submittal, Pilgrim did acknowledge in their discussion the necessity for an exemption in accordance with 10 CFR 50.12, from the requirements of 10 CFR 50.82(a)(8)(i)(A) in order to use the decommissioning trust funds for spent fuel management expenses. What is the source of funds to address the annual spent fuel costs identified in Table 5 of the PDCE?

Preliminary Decommissioning Cost Estimate (PDCE)

RAI No. 2: Section 2.2 Financial Assurance of the PDCE In Section 2.2, Pilgrim stated that their analysis, whose results are shown in Table 8 of the July 31, 2008, submittal, was based on a 3-percent inflation rate. Was the 3-percent inflation rate based on the information identified in Section 2.1, Escalation of the 2005 Costs to 2007 Dollars or was it based on a different analysis? Based on the information provided in Section 2.1, the NRC staff could not reproduce the 3-percent inflation rate. Pilgrim should provide the supporting analysis that was used to develop the 3-percent escalation rate.

Enclosure

RAI No. 3: Section 2.2 Financial Assurance of the PDCE Section 2.2 stated that Pilgrim used a 1.47 percent real rate of return to produce the results listed in Table 8. The staff applied both the Pilgrims 1.47 percent real rate of return as well as a 2 percent real rate of return. The staff analysis was based on a trust balance of $621.76 million and a license termination date of 2012 and deducted the expenses identified in Table 7, Pilgrim Nuclear Power Station Schedule of Annual Expenditures, License Termination and Spent Fuel Management Allocations. The staff analysis did not support the conclusion that sufficient funds would be available to decommission Pilgrim starting in 2043 applying the licensees real rate of return of 1.47 percent. In addition, the staff could not reconcile the differences between Pilgrims and the staffs approaches for analyzing the decommissioning trust fund balance and projected expenditures. The licensee should provide the supporting analysis for values/cost identified in each of the columns listed in Table 8.

Pilgrim Nuclear Power Station cc:

Regional Administrator, Region I U. S. Nuclear Regulatory Commission 475 Allendale Road Massachusetts Emergency King of Prussia, PA 19406-1415 Management Agency Attn: John Giarrusso, Senior Resident Inspector Nuclear Preparedness Manager U. S. Nuclear Regulatory Commission 400 Worcester Road Pilgrim Nuclear Power Station Framingham, MA 01702-5399 Post Office Box 867 Plymouth, MA 02360 Mr. William D. Meinert Nuclear Engineer Chairman, Board of Selectmen Massachusetts Municipal Wholesale 11 Lincoln Street Electric Company Plymouth, MA 02360 P.O. Box 426 Ludlow, MA 01056-0426 Chairman Nuclear Matters Committee Site Vice President Town Hall Entergy Nuclear Operations 11 Lincoln Street Pilgrim Nuclear Power Station Plymouth, MA 02360 600 Rocky Hill Road Plymouth, MA 02360-5508 Chairman, Duxbury Board of Selectmen Town Hall General Manager, Plant Operations 878 Tremont Street Entergy Nuclear Operations Duxbury, MA 02332 Pilgrim Nuclear Power Station 600 Rocky Hill Road Office of the Commissioner Plymouth, MA 02360-5508 Massachusetts Department of Environmental Protection Director, Nuclear Safety Assurance One Winter Street Entergy Nuclear Operations Boston, MA 02108 Pilgrim Nuclear Power Station 600 Rocky Hill Road Office of the Attorney General Plymouth, MA 02360-5508 One Ashburton Place 20th Floor Manager, Licensing Boston, MA 02108 Entergy Nuclear Operations Pilgrim Nuclear Power Station MA Department of Public Health 600 Rocky Hill Road Radiation Control Program Plymouth, MA 02360-5508 Schrafft Center, Suite 1M2A 529 Main Street Charlestown, MA 02129

Pilgrim Nuclear Power Station cc:

Senior Vice President Senior Manager, Nuclear Safety &

Entergy Nuclear Operations, Inc. Licensing P.O. Box 31955 Entergy Nuclear Operations, Inc.

Jackson, MS 39286-1995 P.O. Box 31955 Jackson, MS 39268-1995 Vice President, Oversight Entergy Nuclear Operations, Inc. Assistant General Counsel P.O. Box 31995 Entergy Nuclear Operations Jackson, MS 39286-1995 440 Hamilton Avenue White Plains, NY 10601 Senior Vice President and COO Entergy Nuclear Operations, Inc. Ms. Stacey Lousteau 440 Hamilton Avenue Treasury Department White Plains, NY 10601 Entergy Services, Inc.

639 Loyola Avenue Vice President, Operations New Orleans, LA 70113 Entergy Nuclear Operations, Inc.

Pilgrim Nuclear Power Station Mr. James Sniezek 600 Rocky Hill Road 5486 Nithsdale Drive Plymouth, MA 02360-5508 Salisbury, MD 21801-2490 Mr. Michael Kansler Mr. Michael D. Lyster President & CEO/CNO 5931 Barclay Lane Entergy Nuclear Operations, Inc. Naples, FL 34110-7306 P.O. Box 31955 Jackson, MS 39268-1995 Mr. Garrett D. Edwards 814 Waverly Road Mr. John F. McCann Kennett Square, PA 19348 Director, Nuclear Safety & Licensing Entergy Nuclear Operations, Inc. Mr. John Doering 440 Hamilton Avenue P.O. Box 189 White Plains, NY 10601 Parker Ford, PA 19457