ML100750453

Yankee Atomic, Decommissioning Funding Assurance Status Report - 1OCFR 50.75

ML100750453
Person / Time
Site:	Yankee Rowe
Issue date:	03/09/2010
From:	Pizzella C Yankee Atomic Electric Co
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
BYR-2010-003
Download: ML100750453 (5)

Text

COAX4K9 ) YANKEE ATOMIC ELECTRIC COMPANY 49 Yankee Road, Rowe, Massachusetts 01367 March 9, 2010 BYR-2010-003 Docket No.50-029 Re: 10 CFR 50.75 U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555

Reference:

(a) License No. DPR-3 (Docket No.50-029)

(b) Letter: A. C. Kadak to USNRC; Permanent Cessation of Power Operations at the Yankee Nuclear Power Station, BYR-92-024, dated February 26, 1992 (c) Letter: USNRC to Yankee Atomic Power Company; Yankee Nuclear Power Station - Release of Land from Part 50 License, dated August 10, 2007 (d) USNRC Regulatory Issue Summary (RIS) 2001-07, REV 1

Subject:

Decommissioning Funding Assurance Status Report - 10CFR 50.75 Gentlemen:

In reference (b) Yankee Atomic Electric Company (YAEC) informed the USNRC that the Board of Directors of YAEC had decided to permanently cease operations at the Yankee Rowe Plant and that fuel had been permanently removed from the reactor. In accordance with 10CFR 50.82 the certifications in the letter modified the YAEC license to permanently withdraw YAEC's authority to operate the reactor. In 1993, YAEC commenced decommissioning the power plant. In Reference (c), the NRC amended the YAEC license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to the ISFSI only.

In accordance with the requirements of 10 CFR 50.75, direction provided by the NRC staff on March 5, 2008 and recent RIS 2001-07, Rev 1 regulatory clarification, YEAC hereby, submits its report on the status of decommissioning funding for the year ending December 31, 2009. Attachment I provides the requested information.

If you should have any questions, please contact me at (860) 267-6426 x304.

Sincerely, Carla M. l .,. , ,.Date

USNRC

. BYR-2010-003/Page 2 Attachment 1 - "NRC Decommissioning Funding Status Report" cc: J. Joustra, Chief, Decommissioning Branch, Region I S. J. Collins, NRC Regional Administrator, Region 1 J. Goshen, NRC Project Manager, Haddam Neck Plant

BYR-2010-003 Attachment 1 NRC Decommissioning Funding Status Report March 2010

USNRC BYR-2010-003/Attachment 1/Page 1 Attachment I NRC Decommissioning Funding Status Report Yankee Atomic - Yankee Rowe Plant (Status as of 12131109)

1. The amount of decommissioningfunds estimated to be required pursuantto 10 CFR 50.75 (b) and (c) $101.7 million(1 )

2. The amount accumulatedat the end of the calendaryear $38.9 million(2) preceding the date of the report for items included in 10 CFR 50.75 (b) and (c)

3. Schedule of the annual amounts remainingto be collected $11.8 million(3) including amounts beyond those requiredin 10 CFR 50.75 (e)(1)(i)

1. Years to collect 5 years

4. The assumptions used regardingescalationof the decommissioning cost estimate, rates of earnings on decommissioning funds, and rates of other factors used in funding projectionsare:

Annual escalation rate 2.5%

(1)Since the original power plant has been decommissioned and the license amended, the only remaining decommissioning as defined by the NRC in 10 CFR 50.75 is decontamination and dismantlement of the ISFSI once the fuel is removed. The Site-Specific Cost Estimate for future costs beyond 2009 is $101.7 million (in 2009 dollars) and includes the current estimate for spent fuel management costs, i.e. Long-term ISFSI operations through 2022

($91.9 million) and D&D of the ISFSI ($9.8 million).

(2) This accrued market value balance includes amounts in the Decommissioning Trust for all decommissioning costs including site restoration and long-term spent fuel storage as well as decommissioning as defined in 10 CFR 50.75. Since the original power plant has been decommissioned and the license amended, the only remaining decommissioning is decontamination and dismantlement of the ISFSI (currently estimated at $9.8.million of the current market value balance) once the fuel is removed.

(3) YAEC revised its annual decommissioning collections rates effective February 1, 2006 continuing through 2014, based on the Settlement Agreement filed at FERC on May 1, 2006 and accepted on July 31, 2006.

USNRC BYR-2010-003/Attachment 1/Page 2 Attachment 1 NRC Decommissioning Funding Status Report Yankee Atomic - Yankee Rowe Plant (Status as of 12/31109)

Annual after-tax earnings rate on decommissioningtrust funds:

Pre-tax (taxable) 4.0 - 6.0%

Pre-tax (tax-exempt) 5.0%

Pre-tax equity 10.0%

State tax rate (non-qualified trust) 6.5%

Federal tax rate (qualified trust) 20.0%

Federal tax rate (non-qualified trust) 34.0%

Other factors assumed None

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(A)

YAEC is currently collecting funds through its power contracts and amendatory agreements under FERC regulation. The power contracts and the amendatory agreements specify the obligations of the purchasers for the costs of YAEC, including decommissioning costs. Such contracts have been filed with FERC.

6. Any modifications to a licensee's current method of providing None financial assuranceoccurring since the last submitted report.

7. Any materialchanges to trust agreements.

Effective January 1, 2010, YAEC has changed its Nuclear Decommissioning Fund Trustee from Bank of New York Mellon to Bank of America. Although the Trustee has changed, there were no material changes to the trust agreements.