ML101100338

Request for Additional Information Regarding to Decommissioning Financial Assurance Plans (Tac Nos. ME0489, ME0490, ME0496, and ME0497)

ML101100338
Person / Time
Site:	Byron, Braidwood
Issue date:	04/20/2010
From:	Gratton C Plant Licensing Branch III
To:	Pardee C Exelon Nuclear
Gratton C, NRR/DORL/LPL3-2, 415-1055
References
TAC ME0489, TAC ME0490, TAC ME0496, TAC ME0497
Download: ML101100338 (6)

Text

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• • • • -l' Mr. Charles G. Pardee President and Chief Nuclear Officer Exelon Nuclear 4300 Winfield Road Warrenville, IL 60555

SUBJECT:

BYRON STATION, UNIT NOS. 1 AND 2, AND BRAIDWOOD STATION, UNITS 1 AND 2 - REQUEST FOR ADDITIONAL INFORMATION REGARDING THE DECOMMISSIONING FINANCIAL ASSURANCE PLANS (TAC NOS. ME0489, ME0490, ME0496, AND ME0497)

Dear Mr. Pardee:

The Nuclear Regulatory Commission (NRC) staff is continuing its review of the status of decommissioning funding at Braidwood Station (Braidwood), Units 1 and 2, and Byron Station (Byron), Unit Nos. 1 and 2. On March 31, 2009 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML090900463). Exelon Generation Company, LLC (Exelon) submitted its "Report on Status of Decommissioning Funding for Reactors,"

pursuant to Title 10 of the Code of Federal Regulations, Section 50.75. At the request of the NRC staff, by letter dated July 29,2009 (ADAMS Accession No. ML092220037), Exelon submitted its Decommissioning Funding Assurance Plan for Braidwood and Byron. The NRC staff requested additional information in letters dated October 2,2009, and January 7,2010.

The requests for additional information provided herein are related to the letter submitted by Exelon on March 10,2010 (ADAMS Accession No. ML100700098), regarding decommissioning funding status for Braidwood and Byron. The specific information requested is addressed in the enclosure to this letter. During a discussion with your staff on April 19, 2010, it was agreed that you would provide a response 45 days from the date of this letter.

C. Pardee -2 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) 415-1055.

Sincerely, (JMk~

Christopher Gratton, Senior Project Manager Plant Licensing Branch 111-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. STN 50-456, STN 50-457, STI'J 50-454 and STN 50-455

Enclosure:

Request for Additional Information cc w/encl: Distribution via Listserv

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 REQUEST FOR ADDITIONAL INFORMATION REGARDING THE DECOMMISSIONING FUNDING ASSURANCE PLAN BYRON STATION, UNIT NOS. 1 AND 2, AND BRAIDWOOD STATION, UNITS 1 AND 2 DOCKET NOS. STN 50-454, STN 50-455, STN 50-456 AND STN 50-457 The requests for additional information (RAls) provided herein are related to the letter submitted by Exelon Generation Company, LLC (Exelon) on March 10, 2010 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML100700098), regarding decommissioning funding status for Braidwood Station (Braidwood), Units 1 and 2, and Byron Station (Byron), Units Nos. 1 and 2.

Background

On March 31, 2009 (ADAMS Accession No. ML090900463), Exelon submitted its biennial decommissioning funding status report which indicated that eight plants had shortfalls in decommissioning funding assurance. After discussions with the Nuclear Regulatory Commission (NRC), Exelon submitted a Decommissioning Funding Assurance (DFA) Plan in a letter dated July 29, 2009 (ADAMS Accession No. ML092220037). The DFA Plan outlined how Exelon would establish DFA for the eight plants with funding shortfalls, including the Braidwood and Byron units.

The licensee provided a funding plan for Limerick Generating Station, Unit 1, as part of its biennial submission, and provided additional information regarding decommissioning funding plans for Clinton Power Station, Unit 1, and LaSalle County Station, Units 1 and 2. The NRC staff issued letters in December 2009, confirming that Exelon had established DFA for these plants.

On November 16, 2009, and January 11, 2010, Exelon submitted updated site-specific SAFSTOR decommissioning cost estimates for Byron, Unit Nos. 1 and 2 (ADAMS Accession No. ML093210130), and Braidwood, Units 1 and 2 (ADAMS Accession No. ML100120241),

respectively.

In response to the information in these submittals, the NRC staff issued RAls on October 2, 2009 (ADAMS Accession No. ML092730496), and January 7,2010 (ADAMS Accession No. ML100060167), as the submittals did not provide sufficient information to provide DFA for the plants with funding shortfalls.

Enclosure

-2 On March 10, 2010, Exelon submitted a letter indicating that parent company guarantees had been established to provide DFA for Braidwood, Units 1 and 2, and Byron, Unit No.2. Title 10 of the Code of Federal Regulations (10 CFR), Part 30, Appendix A requires the parent company to demonstrate that it passes a financial test and the parent company's independent certified public accountant (CPA) to compare the data in the financial test with the amounts in the parent company's year-end financial statement. Regulatory Guide (RG) 1.159, "Assuring the Availability of Funds for Decommissioning Nuclear Reactors," provides guidance on how to submit that information, such as the format for the test and the CPA's report. This information was not included in the March 10,2010, submittal. As a result, DFA could not be verified for the subject units.

As of April 11,2010, DFA shortfalls remain for the following plants: Braidwood, Units 1 and 2, and Byron, Unit Nos. 1 and 2.

Question 1 As a supplement to the 2009 Biennial Decommissioning Report, Exelon submitted supplemental information on March 10, 2010, indicating that parent company guarantees in the amounts listed below had been established to provide DFA to cover shortfalls identified in the March 2009 biennial decommissioning funding status report.

$14.2 million for Braidwood, Unit 1

$10.5 million for Braidwood, Unit 2

$19.5 million for Byron, Unit No.2 Appendix A of 10 CFR Part 30 requires the parent company to demonstrate that it passes a financial test and the parent company's independent CPA to compare the data in the financial test with the amounts in the parent company's year-end financial statement. Please submit the appropriate financial test(s) and CPA report(s) so that the NRC staff may complete its review of DFA for Braidwood, Units 1 and 2, and Byron, Unit No.2. RG 1.159 provides guidance on how to submit that information, such as the format for the test and the CPA's report.

Submit the appropriate financial test(s) and CPA report(s) in its submittal, so that the staff may complete its review of DFA for Braidwood, Units 1 and 2, and Byron Unit No.2.

Question 2 As a supplement to the 2009 Biennial Decommissioning Report, Exelon submitted a site-specific decommissioning cost estimate on November 16, 2009, for Byron, Unit Nos. 1 and 2, and January 10, 2010, for Braidwood, Units 1 and 2.

Page 13 of NUREG-1713, "Standard Review Plan for Decommissioning Cost Estimates for Nuclear Power Reactors," provides a list of major factors to be addressed in the cost estimate.

The information needed for known or suspected contamination at the site is quoted below:

-3 The potential for known or suspected contamination at the site.

Although the requirements described in 10 CFR 50. 75(g) for keeping records of spills or other unusual occurrences are outside the scope of this SRP, the reviewer should ensure that the licensee has evaluated the anticipated extent of contamination on the facility and site based on information available in the decommissioning files. This description need not be a detailed discussion, but should include descriptions of known instances of releases of contaminated materials into the facility and the external environment, and the possible impact on decommissioning.

Known environmental contamination should be identified (including soil, groundwater, surface water, etc.).

The site-specific cost estimates did not include a discussion of known or suspected contamination at the site. Please include a discussion of known or suspected contamination at each site that follows the guidance of NUREG-1713. The site-specific cost estimate for Braidwood should also include a discussion of the known environmental contamination of tritium.

C. Pardee -2 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 NRCs goal of efficient and effective use of staff resources. If circumstances result in the need to revise be requested response date, please contact me at (301) 415-1055.

Sincerely, IRAI Christopher Gratton, Senior Project Manager Plant Licensing Branch 111-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. STN 50-456, STN 50-457, STN 50-454 and STN 50-455

Enclosure:

Request for Additional Information cc w/encl: Distribution via Listserv DISTRIBUTION:

PUBLIC LPL3-2 R/F RidsNrrDorlLpl3-2 Resource RidsNrrPMByron Resource RidsNrrPMBraidwood Resource RidsNrrLATHarris Resource RidsOgcRp Resource RidsRgn3MailCenter Resource RidsNrrDorlDpr Resource RidsAcrsAcnw_MailCTR Resource ASimmons, NRR TFredrichs, NRR ADAMS Accession No I\IIL101100338 OFFICE LPL3-2/PM LPL3-2/LA LPL3-2/BC NAME CGratton THarris SCampbell/ MDavid for DATE 04/20/10 04/20/10 04/ /10 OFFICIAL RECORD COpy