ML091960365

E-mail from R. Guzman to E. Tyler Request for Additional Information - CENG-EDF License Transfer (TAC Nos. ME0443, ME0444, ME0445, ME0446, ME0447) - Non-Proprietary

ML091960365
Person / Time
Site:	Calvert Cliffs, Nine Mile Point, Ginna
Issue date:	07/15/2009
From:	Richard Guzman Division of Operating Reactor Licensing
To:	Tyler E Constellation Energy Nuclear Group
Guzman R, NRR/DORL, 415-1030
References
TAC ME0443, TAC ME0444, TAC ME0445, TAC ME0446, TAC ME0447
Download: ML091960365 (3)

Text

From: Guzman, Richard Sent: Wednesday, July 15, 2009 10:13 AM To: 'Tyler, Edmund M'

Subject:

FW: CENG/EDF License Transfer Application Rev 1 - Publicly Available Version

Ned, Below is the revised request for additional information based on your previous email requesting to withhold proprietary information from the public domain.

Thanks, Rich Guzman Sr. Project Manager NRR/DORL US NRC 301-415-1030 Richard.Guzman@nrc.gov

=============

The NRC staff has reviewed the Constellation Energy Nuclear Group, LLC (CENG) and EDF Development, Inc. (EDF Development) submittal dated January 22, 2009, as supplemented on February 26, April 8, and June 25, 2009. The NRC staff has determined that additional information requested below will be needed to complete its review. Please respond to this RAI promptly, but no later than Aug 13, 2009, to support the support the timely completion of its review.

Under 10 CFR 50.33(f) a non-utility applicant must provide information sufficient to demonstrate its financial qualifications to carry out the activities for which the license is being sought.

In addition, per NUREG 1577, Rev. 1, the reviewer "will also consider relevant financial information (i.e.

information on cash or cash equivalents that would be sufficient to pay fixed operating costs during an outage of at least 6 monthsand any other relevant factors.)"

Finally, 10 CFR 50.33(f)(4) states:

The Commission may request an established entity or newly-formed entity to submit additional or more detailed information respecting its financial arrangements.[T]his may include information regarding a licensee's ability to continue the conduct of the activities authorized by the license" License transfer financial qualification reviews provide an opportunity for NRC staff to review and ultimately address any new financial qualification concerns.

The finding of reasonable assurance that funds will be available to cover estimated operating costs for the period of the license relies on the applicant providing sufficient information regarding availability of credit or support agreements, bank lines of credit or other specifically identified sources of funds, sufficient to fund the estimated fixed operating and maintenance costs the period of the license.

The staff recognizes that the applicant

1. Has provided two support agreements in the total amount of $290 million, which is sufficient to fund total fixed operating expenses for an outage scenario of 6 months for all plants.

2. Has submitted a 5 year projected income statement for R.E. Ginna Nuclear Plant (Ginna) [ ].

3. Has submitted a 5 year projected statement of operating cash flows for Ginna [

].

Based on the above information, the staff requires additional information to complete its evaluation:

Identify sources of funding in addition to the $290 million provided by the support agreements to fund the projected [ ] operating cashflow of the Ginna plant, (i.e. line of credit or additional support agreement) in sufficient detail such staff may make a finding that Ginna has reasonable assurance of obtaining the necessary funds to cover estimated operation and maintenance costs for the period of the license.

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E-mail Properties Mail Envelope Properties (83F82891AF9D774FBBB39974B6CB134F948D2E2A75)

Subject:

FW: CENG/EDF License Transfer Application Rev 1 - Publicly Available Version Sent Date: 07/14/2009 11:48:38 PM Received Date: 07/15/2009 10:12:00 AM From: Guzman, Richard Created By: Richard.Guzman@nrc.gov Recipients:

Edmund.M.Tyler@constellation.com ('Tyler, Edmund M')

Tracking Status: None Post Office:

HQCLSTR01.nrc.gov Files Size Date & Time MESSAGE 14300 07/14/2009 Options

Expiration Date:

Priority: olImportanceNormal ReplyRequested: False Return Notification: False Sensitivity: olNormal Recipients received: