ML092040018

Review of Biennial Decommissioning Funding Report and Plan for Projected Shortfall

ML092040018
Person / Time
Site:	Limerick
Issue date:	09/25/2009
From:	Peter Bamford Plant Licensing Branch 1
To:	Pardee C Exelon Generation Co, Exelon Nuclear
Bamford, Peter J., NRR/DORL 415-2833
References
TAC ME0533, TAC ME0534
Download: ML092040018 (3)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 September 25, 2009 Mr. Charles G. Pardee President and Chief Nuclear Officer Exelon Nuclear 4300 Winfield Road Warrenville, IL 60555

SUBJECT:

LIMERICK GENERATING STATION, UNITS 1 AND 2 - REVIEW OF BIENNIAL DECOMMISSIONING FUNDING REPORT AND PLAN FOR PROJECTED SHORTFALL (TAC NOS. ME0533 AND ME0534)

By letter dated March 31,2009, (Agencywide Documents Access and Management System Accession No. ML090900463) Exelon Generation Company, LLC (EGC) submitted the biennial decommissioning funding report for Limerick Generating Station (LGS), Units 1 and 2. Based on its internal review, the Nuclear Regulatory Commission (NRC) staff believes there is a projected shortfall of decommissioning funding assurance for LGS Unit 1 at the time permanent termination of operations is expected.

EGC acknowledged on page 4 of their submittal that:

Due to the financial market conditions as of December 31, 2008 [... ] Limerick Generating Station [does] not currently meet the [Title 10 of the Code of Federal Regulations] 10 CFR 50.75(b) and (c) minimum funding criteria as of December 31, 2008.

On page 4 of their March 31,2009, submittal, EGC also provided a plan for LGS to address the adequacy of its decommissioning funding assurance that stated:

For Limerick Generating Station, any needed adjustments will be made in the next filing of the Nuclear Decommissioning Cost Adjustment to the Pennsylvania Public Utilities Commission [PaPUC]. This cost adjustment is made every five years pursuant to PaPUC Electric Tariff NO.3. The last adjustment was effective January 1, 2008.

The NRC staff has reviewed this plan, and has considered the length of time remaining on the license as well as the ability of the licensee to obtain needed adjustments from the PaPUC. The NRC has concluded that based on the plan to make needed adjustments at the next rate case

C. Pardee -2 (Le., adjustments such that LGS, Unit 1 will be on track to have sufficient funds for decommissioning at the time of permanent termination of operations is expected), no additional response or action by the licensee is required at this time. The NRC staff has also reviewed the data for LGS, Unit 2 and is satisfied that the required 10 CFR 50.75(b) and (c) minimum funding criteria for that unit is met at this time. Based on these considerations the NRC is closing TAC Nos. ME0533 and ME0534.

Please contact me at 301-415-2833 if you have any questions.

Peter Bamford, Project Manager Plant Licensing Branch 1-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-352 and 50-353 cc w/encl: Distribution via Listserv

C. Pardee -2 (i.e., adjustments such that LGS, Unit 1 will be on track to have sufficient funds for decommissioning at the time of permanent termination of operations is expected), no additional response or action by the licensee is required at this time. The NRC staff has also reviewed the data for LGS, Unit 2 and is satisfied that the required 10 CFR 50.75(b) and (c) minimum funding criteria for that unit is met at this time. Based on these considerations the NRC is closing TAC Nos. ME0533 and ME0534.

Please contact me at 301-415-2833 if you have any questions.

Sincerely,

/raJ Peter Bamford, Project Manager Plant Licensing Branch 1-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-352 and 50-353 cc w/encl: Distribution via Listserv DISTRIBUTION:

PUBLIC RidsNrrLAABaxter RidsNrrPMPBamford RidsRgn1 MailCenter Resource RidsOgcRp Resource LPL 1-2 R/F RidsAcrsAcnw_MailCTR Resource RidsNrrDorlLpl1-2 Resource TQuay, NRR ASimmons, NRR MDusaniwskyj, NRR SUttal,OGC BMizuno, OGC RidsNrrDprPfpb Resource RidsNrrDpr Resource ACCESSION NUMBER' ML092040018 OFFICE LPL1-2/PM LPL 1-2/LA PFPB/BC OGC LPL 1-2/BC NAME PBamford ABaxter RCarlson SUttal HChernoff DATE 7/28/09 7/28/09 7/29/09 8/11/09 9/25/09 OFFICIAL RECORD COpy