ML092680932
| ML092680932 | |
| Person / Time | |
|---|---|
| Site: | Point Beach  |
| Issue date: | 09/30/2009 |
| From: | Justin Poole Plant Licensing Branch III |
| To: | Meyer L Point Beach |
| Poole Justin/DORL/LPL3-1/ 301-415-2048 | |
| References | |
| TAC ME0556, TAC ME0557 | |
| Download: ML092680932 (4) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 Mr. Larry Meyer Site Vice President NextEra Energy Point Beach, LLC 6610 Nuclear Road Two Rivers, WI 54241-9516 SUB..IECT:
POINT BEACH NUCLEAR PLANT, UNITS 1 AND 2 - REQUEST FOR ADDITIONAL INFORMATION REGARDING DECOMMISSIONING FUNDING ASSURANCE PLAN (TAC NOS. ME0556 AND ME0557)
Dear Mr. Meyer:
On March 27, 2009, the Nuclear Regulatory Commission (NRC) received FPL Energy Point Beach, LLC's (the licensee) biennial decommissioning funding report (Agencywide Documents Access and Management System (ADAMS) Accession No. ML090900306) for Point Beach Nuclear Plant, Units 1 and 2. By letter dated July 27, 2009 (ADAMS Accession No. ML092110118), the licensee submitted a plan as part of the concurrent 2009 Biennial Decommissioning Review process, which describes how and when it intends to make adjustments to the financial assurance mechanisms such that any shortfalls in decommissioning funding assurance for Point Beach Nuclear Plant, Units 1 and 2 are covered.
The NRC staff is reviewing the provided information and has determined that additional information is required to complete the review. The specific information requested is addressed in the enclosure to this letter. During a discussion with your staff on September 23, 2009, it was agreed that you would provide the additional information within 30 days of the date of this letter.
The NRC staff considers that timely responses to requests for additional information help ensure sufficient time is available for staff review and contribute toward the NRC's goal of efficient and effective use of staff resources. If circumstances result in the need to revise the requested response date, please contact me at (301) 415-2048.
Sincerely,
~~
Justin C. Poole, Project Manager Plant Licensing Branch 111-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-266 and 50-301
Enclosure:
Request for Additional Information cc w/encl: Distribution via ListServ
REQUEST FOR ADDITIONAL INFORMATION POINT BEACH NUCLEAR POWER PLANT, UNITS 1 AND 2 DOCKET NOS. 50-266 AND 50-301 The Nuclear Regulatory Commission (NRC) staff has reviewed your submittal, dated July 27, 2009 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML092110118), outlining FPL Energy Point Beach, LLC's (FPL Energy) proposed plan of action to cover the shortfall in decommissioning funding assurance. Based on the Biennial Decommissioning Funding Report submitted on or about March 31,2009, the NRC staff estimated a projected shortfall of approximately $43 million for Unit 1 and $46 million for Unit 2, as of December 31,2008.
In your July 27, 2009 (ADAMS Accession No. ML092110118), submittal, FPL Energy states that the decommissioning trust fund balance as of June 30,2009, has grown to $196.4 million, an increase of $15.4 million for Unit 1, and has grown to $185.0 million, an increase of $14.5 million for Unit 2 from the December 31,2008 balance indicated in the Biennial Decommissioning Funding Report that was submitted on or about March 31, 2009, by FPL Energy Point Beach, LLC.
FPL Energy has also proposed the use of a Parent Company Guarantee, based on a value derived by discounting the Minimum Decommissioning Funding Formula amount from the projected value at the time of permanent secession of operations, to a present value at the end of calendar 2009. FPL Energy proposed that the combination of the increase decommissioning trust fund balance as of June 30, 2009, along with the proposed discounted Parent Company Guarantee, will provide adequate decommissioning funding assurance.
Question 1 On July 27, 2009, FPL submitted a plan on behalf of the licensed owner FPL Energy, the 100 percent owner of Point Beach Nuclear Plant, Units 1 and 2, as part of the concurrent 2009 Biennial Decommissioning Review process, which describes how and when it intends to make adjustments to financial assurance mechanisms such that any shortfalls in decommissioning funding assurance for Point Beach Nuclear Plant, Units 1 and 2 are covered.
On page 2 of the decommissioning funding plan submitted, the licensee stated:
In order to address the funding difference for Point Beach 1, FPL Energy will cause FPL Group Capital Inc. to issue a decommissioning funding parent (company) guaranty for $13 million for Unit 1 and $14.5 million for Unit 2
[which is based on a] present value of NRC Minimum Calculation pursuant to 10 CFR 50.75.
10 CFR 50.75 (b)(1) states:
(b) Each power reactor applicant for or holder of an operating license, and each applicant for a combined license under subpart C of 10 CFR part 52 for a production or utilization facility of the type and power level specified in paragraph (c) of this section shall submit a decommissioning report, as required by 10 CFR 50.33(k).
Enclosure
- 2 (1) 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 morel 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.
(Emphasis added.)
NRC recognizes that if $13 million for Unit 1, and $14.5 million for Unit 2, were deposited in cash into the prepaid account, the increased balance would provide adequate financial assurance, as of June 30, 2009. The reason is that actual funds in a prepaid account can generate earnings.
However, FPL Energy's plan to provide a parent company guarantee (PCG) in the amount of
$13 million for Unit 1, and $14.5 million for Unit 2, does not meet the requirements of 10 CFR 50.75(e)(1)(i). The PCG is a promise by the parent company to pay the decommissioning obligations of the licensee in the event the licensee fails to pay for decommissioning costs. By its nature, the PCG has no funds from which earnings can be generated. Your plan would generate earnings only on the actual balance in the account. The sum of the $196,376,577 balance plus earnings on the balance plus a $13 million for Unit 1, and the sum of the $185 million balance plus earnings on the balance plus a $14.5 million for Unit 2, PCG would not cover the minimum NRC requirement of 10 CFR 50.75(c), as of July 31,2009.
In view of the above, provide a revised plan to cover the projected shortfall using a method that conforms to one of the methods provided in 10 CFR 50.75.
ML092110118), the licensee submitted a plan as part of the concurrent 2009 Biennial Decommissioning Review process, which describes how and when it intends to make adjustments to the financial assurance mechanisms such that any shortfalls in decommissioning funding assurance for Point Beach Nuclear Plant, Units 1 and 2 are covered.
The NRC staff is reviewing the provided information and has determined that additional information is required to complete the review. The specific information requested is addressed in the enclosure to this letter. During a discussion with your staff on September 23, 2009, it was agreed that you would provide the additional information within 30 days of the date of this letter.
The NRC staff considers that timely responses to requests for additional information help ensure sufficient time is available for staff review and contribute toward the NRC=s goal of efficient and effective use of staff resources. If circumstances result in the need to revise the requested response date, please contact me at (301) 415-2048.
Sincerely, IRA!
Justin C. Poole, Project Manager Plant Licensing Branch 111-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-266 and 50-301
Enclosure:
Request for Additional Information cc w/encl: Distribution via ListServ DISTRIBUTION PUBLIC RidsNrrLABTully Resource LPL3-1 r/f RidsNrrPMPointBeach Resource RidsNrrDorlLpl3-1 Resource ASimmons, NRR RidsRgn3MailCenter Resource RidsOgcRp Resource MDusaniwskyj, NRR RidsAcrsAcnw_MailCTR Resource RidsNrrDirsltsb Resource TFredrichs, NRR RidsNrrDorlDpr Resource RCarlson, NRR ADAMS Accession Number' ML092680932 OFFICE LPL3-1/PM LPL3-1/LA NRR/PFPB/BC LPL3-1/BC(A)
NAME JPoole THarris RCarlson (MDusaniwskvj for>>
PTam DATE 09/30109 09/30109 09/30109 09/30109