ML092610705

Request for Additional Information Decommissioning Funding Assurance

ML092610705
Person / Time
Site:	Nine Mile Point, Ginna
Issue date:	09/25/2009
From:	Richard Guzman Division of Operating Reactor Licensing
To:	Barron H Constellation Energy Nuclear Group
Guzman R, NRR/DORL, 415-1030
References
TAC ME0522, TAC ME0540
Download: ML092610705 (4)

Text

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~~ ~o Mr. Henry B. Barron President, CEO, and Chief Nuclear Officer Constellation Energy Nuclear Group, LLC 100 Constellation Way, Suite 200C Baltimore, MD 21202

SUBJECT:

REQUEST FOR ADDITIONAL INFORMATION REGARDING DECOMMISSION FUNDING ASSURANCE FOR NINE MILE POINT NUCLEAR STATION, UNIT NO.1 AND RE. GINNA NUCLEAR POWER PLANT (TAC NOS. ME0540 AND ME0522)

Dear Mr. Barron:

By letter dated March 26, 2009, Constellation Energy Nuclear Group, LLC (CENG), submitted its 2009 report on the status of decommissioning funding for Calvert Cliffs Nuclear Power Plant, Unit Nos. 1 and 2, Nine Mile Point Nuclear Station, Unit Nos. 1 and 2, and RE. Ginna Nuclear Power Plant. On July 29,2009, CENG provided its plan to address the status of decommissioning funds for the four plants.

The Nuclear Regulatory Commission (NRC) staff is reviewing the submittals and has determined that additional information for Nine Mile Point Unit NO.1 and RE. Ginna Nuclear Power Plant is needed to support its review. Enclosed is the NRC staff's request for additional information (RAI). The RAI was discussed with your staff on September 18, 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. 50-220 and 50-244

Enclosure:

As stated cc w/encl: Distribution via Listserv

REQUEST FOR ADDITIONAL INFORMATION (RAI)

DECOMMISSIONING FINANCIAL ASSURANCE PLANS 2009 BIENNIAL DECOMMISSION REVIEW NINE MILE POINT NUCLEAR STATION, UNIT NO.1 DOCKET NO. 50-220 R.E. GINNA NUCLEAR POWER PLANT DOCKET NO. 50-244 The Nuclear Regulatory Commission (NRC) staff is reviewing the Constellation Energy Nuclear Group, LLC (CENG), letter dated July 29, 2009. The NRC staff has determined that additional information requested below will be needed to complete its review.

As part of the Decommissioning Funding Status Plan submitted on July 29, 2009, CENG states:

In addition to the current decommissioning funds accumulated for each plant in accordance with 10 CFR 50.75 (e)( 1)(i) and (ii), CENG also intends to utilize the safe storage scenario (SAFSTOR) provided for in those sections in order to enhance decommissioning funding assurance for each plant. Accordingly, CENG is developing site-specific cost estimates based on a defined period of SAFSTOR decommissioning.

10 CFR 50.75 (f)( 1) states:

Each power reactor licensee shall report, on a calendar-year basis, to the NRC by March 31, 1999, and at least once every 2 years on the status of its decommissioning funding for each reactor or part of a reactor that it owns.

However, each holder of a combined license under part 52 of this chapter need not begin reporting until the date that the Commission has made the finding under § 52.103(g) of this chapter. The information in this report must include, at a minimum the amount of decommissioning funds estimated to be required under 10 CFR 50.75(b) and (c)...

Further, 10 CFR 50.75 (b)( 1) states:

For an applicant for or holder of an operating license under part 50, the report must contain a certification that financial assurance for decommissioning will be (for a license applicant), or has been (for a license holder), provided in an amount which may be more, but not less, than the amount stated in the table in paragraph (c)(1) of this section adjusted using a rate at least equal to that stated in paragraph (c)(2) of this section.

Enclosure

-2 In order to complete its review of the proposed decommissioning plan, the NRC staff requires sufficient documentary evidence, per 10 CFR 50.75 to enable the NRC staff to make a finding of reasonable assurance that decommissioning funding assurance, based on the proposed plan, will be provided for Nine Mile Point Unit 1 and R.E. Ginna, consistent with NRC regulations.

Nine Mile Point Nuclear Station, Unit NO.1 (NMP1)

As stated to Constellation in the phone call with the NRC on June 29,2009, the current NRC minimum decommissioning formula amount for NMP1 is $511 million. Submit an updated site specific decommissioning cost estimate which meets the requirements of 10 CFR 50.75 (b)( 1) which may be "more, but not less" than the current minimum decommissioning formula amount for NMP1. The site specific estimate should include a table of the estimated costs for radiological decommissioning, per year, for the entire decommissioning period.

R.E. Ginna Nuclear Power Plant (Ginna)

As stated to Constellation in the phone call with the NRC on June 29, 2009, the current NRC minimum decommissioning formula amount for Ginna is $357.2 million. Submit an updated site specific decommissioning cost estimate which meets the requirements of 10 CFR 50.75 (b)(1) which may be "more, but not less" than the current minimum decommissioning formula amount for Ginna. The site specific estimate should include a table of the estimated costs for radiological decommissioning, per year, for the entire decommissioning period.

As part of the proposed Decommissioning Funding Status Plan, CENG has submitted the following:

In the event additional decommissioning funding assurance is needed beyond consideration of the safe storage option, or if the studies are not ready by November 20,2009, then Constellation Energy Group, Inc., the current, ultimate parent company of CENG, intends to provide, pursuant to 10 CFR 50.75(e)(1 )(iii), a parent guarantee or guarantees of funds for the decommissioning costs for that reactor or reactors, which guarantee(s) would be subject to annual review and updating as necessary. We anticipate, if parent guarantees are necessary, they would be put into effect by December 31,2009.

Such guarantees would be determined based on the difference in actual fund values as of a specified date and the funding levels for funding assurance pursuant to 10 CFR 50.75(e)(1)(i). In that event, decommissioning funding assurance would be provided through a combination of acceptable funding methods, in accordance with 10 CFR 50.75(e)( 1)(vi).

Clarify that the amounts any proposed parent company guarantees for any plants with decommissioning shortfalls would be determined based on the difference between the greater of the NRC minimum formula amount or site-specific estimate, and the actual trust fund balance as of a specified date, plus any earnings credits, plus the value of any additional financial assurance mechanisms, as of the date of expected termination of operations. The amount of the shortfall would be reviewed and verified by NRC staff. Any discounted net present value calculations utilized to determine the amount of the potential guarantee are not currently deemed to be in accordance with 10 CFR 50.75(e)(1)(vi).

September 25, 2009 Mr. Henry B. Barron President, CEO, and Chief Nuclear Officer Constellation Energy Nuclear Group, LLC 100 Constellation Way, Suite 200C Baltimore, MD 21202 SUB~IECT: REQUEST FOR ADDITIONAL INFORMATION REGARDING DECOMMISSION FUNDING ASSURANCE FOR I'JINE MILE POINT NUCLEAR STATION, UNIT NO.1 AND RE. GINNA NUCLEAR POWER PLANT (TAC NOS. ME0540 AND ME0522)

Dear Mr. Barron:

By letter dated March 26, 2009, Constellation Energy Nuclear Group, LLC (CENG), submitted its 2009 report on the status of decommissioning funding for Calvert Cliffs Nuclear Power Plant, Unit Nos. 1 and 2, Nine Mile Point Nuclear Station, Unit Nos. 1 and 2, and RE. Ginna Nuclear Power Plant. On July 29, 2009, CENG provided its plan to address the status of decommissioning funds for the four plants.

The Nuclear Regulatory Commission (NRC) staff is reviewing the submittals and has determined that additional information for Nine Mile Point Unit NO.1 and RE. Ginna Nuclear Power Plant is needed to support its review. Enclosed is the NRC staff's request for additional information (RAI). The RAI was discussed with your staff on September 18, 2009, and it was agreed that your response would be provided within 30 days from the date of this letter.

Sincerely, Douglas V. Pickett IRA! for Richard V. Guzman, Senior Project Manager Plant Licensing Branch 1-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-220 and 50-244

Enclosure:

As stated cc w/encl: Distribution via Listserv DISTRIBUTION:

PUBLIC RidsNrrPMRGuzman RidsNrrPMDPickett RidsNrrLASLittle LPLI-1 R/F RidsOGCRp RidsNrrDprPfpb RidsRgn1 MailCenter ASimmons, NRR TFredrichs, NRR MDusaniwskyj, NRR Accession Number: IVIL09261 0705 NRR-088 OFFICE LPL1-1/PM LPL1-1/PM LPL1-1/LA PFPB/BC LPL 1-1/BC NAME DPickett for DPickett SLittie by email RCarlson* NSalgado RGuzman dated DATE 09/22/09 09/22/09 09/22/09 09/23/09 09/25/09 OFFICIAL RECORD COpy