ML092150712

and ISFSI, Nine Mile Point Nuclear Station & R. E. Ginna Nuclear Power Plant - Application for an Order Approving License Transfers and Conforming License Amendment Request, Supplemental Information

ML092150712
Person / Time
Site:	Calvert Cliffs, Nine Mile Point, Ginna
Issue date:	07/27/2009
From:	Barron H Constellation Energy Group
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML092150712 (11)

Text

Henry B. Barron Constellation Energy Nuclear Group President, CEO & Chief Nuclear Officer 100 Constellation Way Suite 1800P Baltimore, MD 21202 0 Constellation Energy*

Nuclear Group 10 CFR 50.80 10 CFR 72.50 10 CFR 50.90 July 27, 2009 U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 ATTENTION: Document Control Desk

SUBJECT:

Calvert Cliffs Nuclear Power Plant Unit Nos. I & 2; Docket Nos. 50-317 & 50-318 Calvert Cliffs Independent Spent Fuel Storage Installation Docket No. 72-8 Nine Mile Point Nuclear Station Unit Nos. I & 2; Docket Nos. 50-220 & 50-410 R. E. Ginna Nuclear Power Plant Docket No. 50-244 Application for an Order Approving License Transfers and Conforming License Amendment Request. Supplemental Information

REFERENCES:

(a) Letter from Mr. M. J. Wallace (CEG) to Document Control Desk (NRC),

dated January 22, 2009, Application for an Order Approving License Transfers and Conforming License Amendment Request (b) Email from Mr. R. V. Guzman (NRC) to Mr. E. M. Tyler (CENG), dated July 15, 2009, CENG/EDF License Transfer Application Revision I In Reference (a), we submitted an application for license transfers related to the pending transaction with EDF Development Inc. In Reference (b) the Nuclear Regulatory Commission indicated some clarifying information is needed for their review of the application. Attachment (1) to this letter provides supplemental information on financial support arrangements that will be implemented by Constellation Energy Nuclear Group.

Attachment (2) is a non-proprietary version of the Master Demand Note for each subsidiary company.

Attachment (3) contains the form of the Master Demand Note for each of the subsidiary companies under the cash pool arrangement. We request that Attachment (3) be withheld from public disclosure pursuant to 10 CFR 2.390(a)(4) and 9.17(a)(4) as described in the Affidavit of Henry B. Barron, which is provided in Attachment (4).

04oo1

Document Control Desk July 27, 2009 Page 2 If there are any questions regarding this transmittal, please contact Mr. Lou S. Larragoite at 410-495-5245 or Louis.Larragoite@constellation.com.

Sincerely, Henry B. Barron Chief Nuclear Officer Constellation Energy Nuclear Group, LLC STATE OF MARYLAND

TO WIT:

CITY OF BALTIMORE I, Henry B. Barron, state that I am the Chief Nuclear Officer for Constellation Energy Nuclear Group, LLC, for Calvert Cliffs Nuclear Power Plant, Inc., Nine Mile Point Nuclear Station, LLC, and R. E.

Ginna Nuclear Power Plant, LLC, and that I am duly authorized to execute and file this submittal on behalf of these companies. To the best of my knowledge and belief, the statements contained in this document with respect to these companies are true and correct. To the extent that these statements are not based on my personal knowledge, they are based upon information provided by employees and/or consultants of the companies. Such information has been reviewed in accordance with company practice, and I believe it to be reliable.

Subscribed and sworn before me, a Notary Public in and for the State of Maryland and City of Baltimore, thisW,-ý day of July, 2009.

WITNESS my Hand and Notarial Seal:

4 ary Public My Commission Expires:

Date HBB/EMT Attachments: (1) Supplemental Information (2) Forms of Master Demand Notes (Non-Proprietary)

(3) Forms of Master Demand Notes (Proprietary)

(4) 10 CFR 2.390 Affidavit

Document Control Desk July 27, 2009 Page 3 cc: R. V. Guzman, NRC (Without Attachment 3)

D. V. Pickett, NRC M. F. Weber, NMSS S. J. Collins, NRC Resident Inspector, NRC (Calvert Cliffs)

Resident Inspector, NRC (Ginna)

Resident Inspector, NRC (Nine Mile Point)

A. L. Peterson, NYSERDA S. Gray, Maryland DNR P. D. Eddy, New York State Department of Public Service

ATTACHMENT (1)

SUPPLEMENTAL INFORMATION Constellation Energy Nuclear Group, LLC July 27, 2009

ATTACHMENT (1)

SUPPLEMENTAL INFORMATION Constellation Energy Nuclear Group, LLC (CENG) [on behalf of its subsidiary licensees Calvert Cliffs Nuclear Power Plant, Inc., Nine Mile Point Nuclear Station, LLC, and R. E. Ginna Nuclear Power Plant, LLC (collectively, CENG Companies)] and EDF Development Inc. (EDF Development) submit this supplement to the Application for an Order Approving License Transfers and Conforming License Amendment Request to provide information to the Nuclear Regulatory Commission regarding additional financial support arrangements that will be implemented by CENG.

In addition to the financial support mechanisms described in the Application, which include the availability of $290 million pursuant to two Support Agreements from corporate parents, CENG intends to implement a cash pooling arrangement that will provide an additional vehicle for managing the working capital needs of the CENG Companies. All the CENG Companies will be members of the cash pool and will have access to it on an ongoing basis. Constellation Energy Nuclear Group, LLC will coordinate the cash pool arrangement on behalf of all the CENG Companies. The cash pool will provide funds to any CENG Company to meet operating and maintenance expenses whenever such needs are identified. Each day, each member of the cash pool will provide CENG with its cash position for that day.

Each day, each member will also transfer to the pool any excess cash. Any such excess cash is used first to provide funds to any other CENG Companies requiring it, and the remainder is invested. The arrangement will be formalized and executed through standard and customary financial agreements between CENG and the operating affiliates. Specifically, each operating company will execute a Master Demand Note between the operating company and CENG. Each day, CENG will record the amount borrowed or invested on the note in the "Activity and Daily Balance" Grid attached to the Master Demand Note, with interest payable to or receivable from CENG.

The fleet-wide cash pooling arrangement will provide an efficient vehicle for managing working capital by allowing excess or surplus cash to be used by any plant whenever funds are needed. As previously described to the Nuclear Regulatory Commission, Constellation Energy Group, Inc. has effectively deployed such a cash pool arrangement for its operating subsidiaries for many years. See Order Approving R. E. Ginna Nuclear Power Plant License Transfer, Attachment I (SER), Page 4, May 28, 2004; Order Approving Nine Mile Point Nuclear Station, Units 1 and 2 License Transfer, Attachment 1 (SER), Pages 10-11, June 22, 2001; Order Approving Calvert Cliffs Nuclear Power Plant License Transfer, Attachment 1 (SER), Page 9, June 19, 2001.

I

ATTACHMENT (2)

FORMS OF MASTER DEMAND NOTES (NON-PROPRIETARY).

Constellation Energy Nuclear Group, LLC July 27, 2009

ATTACHMENT (2)

FORMS OF MASTER DEMAND NOTES (NON-PROPRIETARY)

MASTER DEMAND NOTE (R. E. Ginna Nuclear Power Plant, LLC)

I

ATTACHMENT (2)

FORMS OF MASTER DEMAND NOTES (NON-PROPRIETARY)

MASTER DEMAND NOTE (Nine Mile Point Nuclear Station, LLC) 2

ATTACHMENT (2)

FORMS OF MASTER DEMAND NOTES (NON-PROPRIETARY)

MASTER DEMAND NOTE (Calvert Cliffs Nuclear Power Plant, LLC) 3

ATTACHMENT (4) 10 CFR 2.390 AFFIDAVIT Constellation Energy Nuclear Group, LLC July 27, 2009

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of )

)

Constellation Energy Nuclear Group, LLC et al. )

)

AFFIDAVIT I, Henry B. Barron, President, CEO & Chief Nuclear Officer of Constellation Energy Nuclear Group, LLC, for Calvert Cliffs Nuclear Power Plant, Inc., Nine Mile Point Nuclear Station, LLC, and R. E.

Ginna Nuclear Power Plant, LLC (together, the CENG Companies), do hereby affirm and state:

1. I am authorized to execute this affidavit on behalf of CENG and the CENG Companies.

2. CENG and the CENG Companies are providing information in support of their Application for an Order Approving License Transfers and Conforming License Amendment Request. The documents being provided in Attachment (3) contain proprietary financial information related to the ownership and operation of the CENG nuclear generation and operation business. The documents 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) and 9.17(a)(4),

because:

i. The information is and has been held in confidence by CENG and the CENG Companies.

ii. This information is of a type that is customarily held in confidence by CENG and the CENG Companies, and there is a rational basis for doing so because the information contains sensitive financial information concerning the operations of the business of CENG and the CENG Companies.

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 CENG and the CENG Companies by disclosing their internal financial projections and other financial matters.

3. Accordingly, CENG and the CENG Companies request that the designated documents be withheld from public disclosure pursuant to the policy reflected in 10 CFR § § 2.390(a)(4) and 9.17(a)(4).

Subscribbed and sworn before me, a Notary Public, in and for e State of Maryland and City of Baltimore, this:*_fiay of July, 2009.

WITNESS my Hand and Notarial Seal:  ;; 0'74r, MCmiEpary Public My Commission Expires: 0________________

,A1 0 0 NOTARY PUBLIC BALTIMORE CrTy

.'MARYLAND ~