ML093000506

R. E. Ginna Nuclear Power Plant, Supplemental Information in Support of Orders Approving Application Regarding Proposed Corporate Restructuring

ML093000506
Person / Time
Site:	Ginna
Issue date:	10/26/2009
From:	Barron H Constellation Energy Nuclear Group
To:	Document Control Desk, Office of Nuclear Reactor Regulation
References
Download: ML093000506 (6)

Text

Henry B. Barron President, CEO & Chief Nuclear Officer Constellation Energy Nuclear Group 100 Constellation Way Suite 1800P Baltimore, MD 21202 Constellation Energy-Nuclear Group 10 CFR 50.80 10 CFR 72.50 10 CFR 50.90 October 26, 2009 U.S. Nuclear Regulatory Commission Washington, DC 20555-0001 ATTENTION:

SUBJECT:

Document Control Desk R. E. Ginna Nuclear Power Plant Docket No. 50-244 Supplemental Information in Support of Orders Approving Application Regarding Proposed Corporate Restructuring (a)

Letter from H. B. Barron (CENG) to Document Control Desk (NRC),

dated October 25, 2009, "Supplemental Information in Support of Orders Approving Application Regarding Proposed Corporate Restructuring" (b)

Letter from H.B. Barron (CENG) to Document Control Desk (NRC),

dated July 27, 2009, "Application for an Order Approving License Transfers and Conforming License Amendment Request, Supplemental Information"

REFERENCE:

As discussed with the NRC Staff during a teleconference on October 26, 2009, Constellation Energy Nuclear Group, LLC (CENG) submits in Attachment (1) herewith a copy of the revised Master Demand Note forR.E. Ginna Nuclear Power Plant, LLC (Ginna), effective immediately, with the revision to the minimum amount of funding available to Ginna under such Master Demand Note. This attachment replaces the Ginna Master Demand Note in Reference (a). While not specifically discussed during the teleconference, the Applicants, CENG and EDF Development Inc. (EDF Development), likewise will increase to the same amount reflected in Attachment (1) the minimum amount available to Ginna under the Master Demand Note provided in Reference (b), which will become effective after closing of the EDF Development transaction. We request that Attachment (1) 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, provided in Attachment (2).

A00(

Document Control Desk October 26, 2009 Page 2 As noted in Reference (b), Constellation Energy Group, Inc. (CEG) currently (CENG, subsequent to closing the EDF transaction) operates a cash pooling arrangement for the benefit of the licensees for the three nuclear stations. The Master Demand Notes are executed directly between CEG (CENG, subsequent to closing the EDF transaction) and the licensees as part of implementing the cash pooling arrangement. The cash pool provides funds to any of the licensees to meet operating and maintenance expenses whenever such needs are identified, without any limitation as to the amount made available to meet their cash needs. The specification of a minimum amount of funding available in the Ginna Master Demand Note is intended to remove any doubt as to the minimum that will be available to Ginna.

Finally, in the interests of providing further assurance to the NRC, and with the goal of expediting the Staff's current review, the Applicants note that they have agreed to establish through capital contributions an initial cash pool balance at closing of $225 million. This $225 million will be in addition to the $310 million in cumulative credit support already provided through the ICA.

Should you require any additional information regarding this correspondence, please contact Bruce Montgomery at 410-470-3777 or Bruce.S.Montgomery@constellation.com.

Sincerely, Henry B.ron Chief Nuclear Officer Constellation Energy Nuclear Group, LLC

Document Control Desk October 26, 2009 Page ý43 STATE OF MARYLAND CITY OF BALTIMORE

TO WIT:

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, this R day of October, 2009.

NoyPublic WITNESS my Hand and Notarial Seal:

My Commission Expires:

Date Attachments:

(1)

(2)

Master Demand Note (P e*

rArz,)

Affidavit by H.B. Barron

Document Control Desk October 26, 2009 Page 4 cc:

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

Resident Inspector, NRC (Ginna)

Resident Inspector, NRC (Nine Mile Point)

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

ATTACHMENT (2)

AFFIDAVIT BY H.B. BARRON Constellation Energy Nuclear Group, LLC October 26, 2009

UNITED STATES OF AMERICA NUCLEAR REGULATORY COMMISSION In the Matter of

))

Constellation Energy Nuclear Group, LLC, et al.

)

AFFIDAVIT I, Henry B. Barron of Constellation Energy Group, Inc., parent 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 the CENG Companies.

2.

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 (2A) contain proprietary financial information and financial projections related to the ownership and operation of the CENG Companies' generation assets.

These 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.

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

ii.

This information is of a type that is customarily held in confidence by the CENG Companies, and there is a rational basis for doing so because the information contains sensitive financial information concerning projected revenues and operating expenses of 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 the CENG Companies by disclosing their internal financial projections.

3.

Accordingly, 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).

Henry B. Barron Subscribed and swgrnbefore me, a Notary Public, in and for the State of Maryland and City of Baltimore, thisAý ay of

, 2009.

WITNESS my hand and Notarial Seal:

My Commission Expires: