ML091600740
| ML091600740 | |
| Person / Time | |
|---|---|
| Site: | Calvert Cliffs, Nine Mile Point, Ginna  |
| Issue date: | 06/10/2009 |
| From: | Richard Guzman Division of Operating Reactor Licensing |
| To: | Belcher S Nine Mile Point |
| Guzman R, NRR/DORL, 415-1030 | |
| References | |
| TAC ME0443, TAC ME0444, TAC ME0445, TAC ME0446, TAC ME0447 | |
| Download: ML091600740 (4) | |
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~O June 10, 2009 Mr. Samuel L. Belcher Vice President Nine Mile Point Nine Mile Point Nuclear Station, LLC P.O. Box 63 Lycoming, NY 13093
SUBJECT:
REQUEST FOR ADDITIONAL INFORMATION REGARDING APPLICATION FOR AN ORDER APPROVING LICENSE TRANSFERS AND CONFORMING LICENSE AMENDMENT REQUEST - CALVERT CLIFFS NUCLEAR POWER PLANT, UNIT NOS. 1 AND 2, NINE MILE POINT NUCLEAR STATION, UNIT NOS. 1 AND 2, R.E. GINNA NUCLEAR POWER PLANT, AND CALVERT CLIFFS INDEPENDENT SPENT FUEL STORAGE INSTALLATION, MATERIAL LICENSE SNM-2505 (TAC NOS. ME0443, ME0444, ME0445, ME0446, AND ME0447)
Dear Mr. Belcher:
By application dated January 22,2009, as supplemented on February 26 and April 8, 2009, Constellation Energy Nuclear Group, LLC (CENG) and EDF Development, Inc. (EDF Development) requested approval pursuant to 10 CFR 50.80 and 10 CFR 72.56 of the indirect transfer of control of the subject licenses to the extent such would result from certain proposed corporate restructuring action in connection with a planned investment by EDF Development whereby it would acquire a 49.99% ownership interest in CENG. The application also seeks approval of the proposed direct transfer of licenses held under Calvert Cliffs Nuclear Power Plant, Inc. to a new legal entity, Calvert Cliffs Nuclear Power Plant, LLC, and approval of conforming license amendments.
The Nuclear Regulatory Commission (NRC) staff has reviewed the information provided in the application and supplemental letters and has determined that additional information is needed to complete its review. Enclosed is the NRC staff's request for additional information (RAI).
The RAI was discussed with your staff on June 5, 2009, and it was agreed that your response would be provided within 30 days from the date of this letter.
Sincerely, Richard V. Guzman, Senior Project Manager Plant Licensing Branch 1-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-317, 50-318, 50-220, 50-410, 50-244, and 72-8
Enclosure:
As stated cc w/encl: Distribution via Listserv
REQUEST FOR ADDITIONAL INFORMATION (RAI)
INDIRECT TRANSFERS OF LICENSES DUE TO THE CORPORATE RESTRUCTURING OF CONSTELLATION ENERGY NUCLEAR GROUP CALVERT CLIFFS NUCLEAR POWER PLANT (CCNPP), UNIT NOS. 1 & 2, CALVERT CLIFFS INDEPENDENT SPENT FUEL STORAGE INSTALLATION, NINE MILE POINT (NMP) NUCLEAR STATION, UNIT NOS. 1 & 2, AND R. E. GINNA NUCLEAR POWER PLANT The Nuclear Regulatory Commission (NRC) staff has reviewed the Constellation Energy Nuclear Group, LLC (CENG) and EDF Development, Inc. (EDF Development) submittal dated January 22, 2009, as supplemented by letters dated February 26 and April 8, 2009. The NRC staff has determined that additional information requested below will be needed to complete its review.
RAI-1
It is stated on page 16, Part B of Section VII, "Financial Qualifications," of the January 22,2009, submittal:
As is demonstrated above, in accordance with 10 CFR 50.75, there continues to be reasonable assurance that the Applicants will have the funds necessary to cover the estimated decommissioning costs of CCNPP, Ginna, and NMP Unit 1, and the relevant share of the decommissioning costs of NMP Unit 2 at the end of licensed operatlon.j--<<]
Please explain how the proposed corporate restructuring whereby EDF Development would acquire a 49.99% ownership interest in CENG will impact decommissioning funding assurance for CCNPP Unit Nos. 1 & 2, R.E. Ginna Nuclear Power Plant, NMP Unit No.1, and the relevant share of NMP Unit No.2.
Page 15 of the January 22, 2009, submittal states:
Calvert Cliffs Nuclear Power Plant, Inc. currently provides decommissioning funding assurance for CCNPP by means of an external sinking fund which is funded with additional company contributions from a non-bypassable charge, as defined in 10 CFR 50.2, collected by CEG's regulated utility affiliate, Baltimore Gas and Electric Company. Pursuant to a recent settlement agreement with the Maryland Public Service Commission, these arrangements will continue through December 31,2016, and we project continuing to make contributions to the nuclear decommissioning trust for CCNPP. [***]
Enclosure
- 2 Please provide further information regarding how the proposed corporate restructuring will affect the referenced settlement with the Maryland Public Service Commission or any other agreements related to decommissioning funding assurance.
Page 16 of the application states:
The proposed conversion of Calvert Cliffs Nuclear Power Plant, Inc. into a limited liability company does not affect any existing financial assurance instruments for decommissioning funding.
The NRC staff is aware that CENG's regulated affiliate, Baltimore Gas and Electric Company (BGE), pursuant to Maryland Senate Bill 1 (signed into law in 2006) and a 1999 restructuring order from the Maryland Public Service Commission, collects an annual decommissioning charge of approximately $18.7 million from its electric customers for the Calvert Cliffs plant through its delivery service charges. In the past, BGE transferred these collected funds to Calvert Cliffs Nuclear Power Plant, Inc., and later CENG, in accordance with a Decommissioning Funds Collection Agent Agreement. Calvert Cliffs and CENG then deposited the funds into the decommissioning trusts for the Calvert Cliffs plant each year. The NRC reviewed the details of the original contractual arrangement, and in its June 30, 2000, Safety Evaluation, concluded that, given the inter-company agreements that obligate the payments, the company was providing decommissioning funding assurance in the form of an external sinking fund tied to a non-bypassable charge, pursuant to 10 CFR 50.75(e)(ii)(B).
The staff is further aware of Maryland Senate Bill 1013, signed into law on April 24, 2008, which gave effect to a settlement agreement between Constellation and its affiliates and the Maryland Public Service Commission which authorized continued collections by BGE of $18.7 million annually in decommissioning charges for Calvert Cliffs through December 31, 2016. Senate Bill 1013 also directs BGE to provide credit for residential customers equal to the approximately
$18.7 million dollars collected annually for decommissioning and also relieves ratepayers of all nuclear decommissioning liability for CCNPP.
10 CFR 50.75(e)(1)(ii) states that:
....This method [external sinking fund] may be used as the exclusive mechanism relied upon for providing financial assurance for decommissioning in the following circumstances:...(B) by a licensee whose source of revenues for its external sinking fund is a "non-bypassable charge,"
the total amount of which will provide funds estimated to be needed for decommissioning pursuant to §§ 50.75(c), 50.75(f) or 50.82 of this part.
Based on this information, Constellation may no longer rely exclusively on an external sinking fund as its decommissioning funding assurance mechanism. Please provide your plan for implementing an alternate decommissioning funding assurance mechanism, acceptable per NRC requirements outlined in 10 CFR 50.75(e)(1), which will be used to provide decommissioning funding assurance.
June 10, 2009 Mr. Samuel L. Belcher Vice President Nine Mile Point Nine Mile Point Nuclear Station, LLC P.O. Box 63 Lycoming, NY 13093
SUBJECT:
REQUEST FOR ADDITIONAL INFORMATION REGARDING APPLICATION FOR AN ORDER APPROVING LICENSE TRANSFERS AND CONFORMING LICENSE AMENDMENT REQUEST - CALVERT CLIFFS NUCLEAR POWER PLANT, UNIT NOS. 1 AND 2, NINE MILE POINT NUCLEAR STATION, UNIT NOS. 1 AND 2, R.E. GINNA NUCLEAR POWER PLANT, AND CALVERT CLIFFS INDEPENDENT SPENT FUEL STORAGE INSTALLATION, MATERIAL LICENSE SNM-2505 (TAC NOS. ME0443, ME0444, ME0445, ME0446, AND ME0447)
Dear Mr. Belcher:
By application dated January 22, 2009, as supplemented on February 26 and April 8, 2009, Constellation Energy Nuclear Group, LLC (CENG) and EDF Development, Inc. (EDF Development) requested approval pursuant to 10 CFR 50.80 and 10 CFR 72.56 of the indirect transfer of control of the subject licenses to the extent such would result from certain proposed corporate restructuring action in connection with a planned investment by EDF Development whereby it would acquire a 49.99% ownership interest in CENG. The application also seeks approval of the proposed direct transfer of licenses held under Calvert Cliffs Nuclear Power Plant, Inc. to a new legal entity, Calvert Cliffs Nuclear Power Plant, LLC, and approval of conforming license amendments.
The Nuclear Regulatory Commission (NRC) staff has reviewed the information provided in the application and supplemental letters and has determined that additional information is needed to complete its review. Enclosed is the NRC staff's request for additional information (RAI).
The RAI was discussed with your staff on June 5, 2009, and it was agreed that your response would be provided within 30 days from the date of this letter.
Sincerely, IRA!
Richard V. Guzman, Senior Project Manager Plant Licensing Branch 1-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-317, 50-318, 50-220, 50-410, 50-244, and 72-8
Enclosure:
As stated cc w/encl: Distribution via Listserv DISTRIBUTION:
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