ML101250065

Request for Additional Information Regarding Status of Decommissioning Funding Assurance

ML101250065
Person / Time
Site:	Limerick
Issue date:	05/17/2010
From:	Peter Bamford Plant Licensing Branch 1
To:	Pardee C Exelon Nuclear
Bamford, Peter J., NRR/DORL 415-2833
References
Download: ML101250065 (5)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 May 17, 2010 Mr. Charles Pardee President and Chief Nuclear Officer Exelon Nuclear 4300 Winfield Road Warrenville, IL 60555

SUBJECT:

LIMERICK GENERATING STATION, UNIT NO.1 - REQUEST FOR ADDITIONAL INFORMATION REGARDING STATUS OF DECOMMISSIONING FINDING ASSURANCE

Dear Mr. Pardee:

By letter dated March 31, 2009 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML090900463), Exelon Generation Company, LLC (Exelon) submitted the biennial decommissioning funding report for all of the reactors owned by Exelon, including Limerick Generating Station (LGS), Units 1 and 2. In that report, Exelon stated that LGS had a shortfall in decommissioning funding assurance and that any needed adjustments would be made in the next filing of the Nuclear Decommissioning Cost Adjustment to the Pennsylvania Public Utilities Commission.

By letter dated September 25,2009 (ADAMS Accession No. ML092040018), the U.S. Nuclear Regulatory Commission (NRC) staff documented its review of Exelon's plan to address LGS funding assurance. The NRC staff concluded that, based on Exelon's plan to make needed adjustments at the next rate case, LGS, Unit 1 would be on track to have sufficient funds for decommissioning at the expected time of permanent termination of operations. The NRC staff also concluded that the LGS, Unit 2 minimum funding requirements were met as of September 25,2009.

Based on the considerations of Title 10 of the Code of Federal Regulations (10 CFR)

Section 50.75(e)(2), the NRC requests updated information regarding the status of the LGS, Unit 1 decommissioning trust fund, as detailed in the enclosure to this letter. The questions in the enclosure were sent in draft form to Mr. Patrick Simpson of your staff via electronic transmission on May 3, 2010. The draft request for additional information was sent to ensure that the questions were understandable, the regulatory basis was clear and to determine if the information was previously docketed. These questions were discussed with your staff in a teleconference on May 5, 2010, and it was agreed that you would provide a response by June 28, 2010.

-2 Please contact me at 301-415-2833, if you have any questions.

Sincerely, [ ) ~..

?/! (Dr Peter Bamford, Project Manager Plant Licensing Branch 1-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-352 and 50-353

Enclosure:

As stated cc: Distribution via Listserv

REQUEST FOR ADDITIONAL INFORMATION LIMERICK GENERATING STATION, UNIT 1 DECOMMISSIONING FINANCIAL ASSURANCE PLANS 2009 BIENNIAL DECOMMISSIONING REVIEW DOCKET NO. 50-352 By letter dated March 31,2009 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML090900463), Exelon Generation Company, LLC (Exelon) submitted the biennial decommissioning funding report for all of the reactors owned by Exelon, including Limerick Generating Station (LGS), Units 1 and 2. In that report, Exelon stated that LGS had a shortfall in decommissioning funding assurance. Specifically, in reference to LGS, Exelon stated as follows:

For Limerick Generating Station, any needed adjustments will be made in the next filing of the Nuclear Decommissioning Cost Adjustment to the Pennsylvania Public Utilities Commission [PaPUC]. This cost adjustment is made every five years pursuant to PaPUC Electric Tariff NO.3. The last adjustment was effective January 1, 2008.

By letter dated September 25, 2009 (ADAMS Accession No. ML092040018), the U.S. Nuclear Regulatory Commission (NRC) staff reviewed Exelon's plan to address the adequacy of the LGS funding assurance. Then NRC staff concluded that, based on Exelon's plan to make needed adjustments at the next rate case, LGS, Unit 1 would be on track to have sufficient funds for decommissioning at the expected time of permanent termination of operations. The NRC staff also concluded that the LGS, Unit 2 minimum funding requirements were met as of September 25, 2009.

Title 10 of the Code of Federal Regulations (10 CFR) Section 50.75(e)(2) states that:

The NRC reserves the right to take the following steps in order to ensure a licensee's adequate accumulation of decommissioning funds: review, as needed, the rate of accumulation of decommissioning funds; and, either independently or in cooperation with the FERC [Federal Energy Regulatory Commission] and the licensee's State PUC, take additional actions as appropriate on a case-by-case basis, including modification of a licensee's schedule for the accumulation of decommissioning funds.

Based on the considerations of 10 CFR 50.75(e)(2), the NRC requests information regarding the status of the LGS, Unit 1 decommissioning trust fund, as follows:

Enclosure

-2 1.) Please provide the schedule for the next filing of the Nuclear Decommissioning Cost Adjustment with the PaPUC, regarding LGS, Unit 1. If the PaPUC has been contacted regarding the shortfall, please submit any documentation that was provided to the PaPUC to the NRC. If the PaPUC has not been contacted regarding the shortfall, your response should include a statement that no contact has been made, and why.

2.) Exelon reported the fund balances for the LGS, Unit 1 decommissioning trust as of December 31, 2008, as $171.1 million. Please provide the following information for LGS, Unit 1 as of December 31,2009: the amount of decommissioning funds estimated to be required under 10 CFR 50.75(b) and (c); the amount accumulated to the end of the calendar year; a schedule of the annual amounts remaining to be collected; the assumptions used regarding rates of escalation in decommissioning costs, rates of earnings on decommissioning funds, and rates of other factors used in funding projections; any contracts upon which the licensee is relying under 10 CFR 50.75(e)(1 )(v) of this section; any modifications occurring to Exelon's current method of providing financial assurance since the last submitted report; and any material changes to trust agreements.

-2 Please contact me at 301-415-2833, if you have any questions.

Sincerely,

/raJ (JHughey for)

Peter Bamford, Project Manager Plant Licensing Branch 1-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-352 and 50-353

Enclosure:

As stated cc: Distribution via Listserv DISTRIBUTION:

PUBLIC RidsOgcRp Resource RidsAcrsAcnw_MailCTRResource LPLI-2 RtF RidsNrrPMLimerick Resource RidsNrrDprPfab Resource RidsRgn1 MailCenter Resource RidsNrrDoriDpr Resource RidsNrrDorlLpl1-2 Resource RidsNrrLAABaxter Resource ASimmons, NRR ADAMS Accession Number: ML101250065 OFFICE LPU-2/PM LPLI-2/LA PFAB/BC LPU-2/BC LPU-2/PM NAME PBamford ABaxter RCarlson HChernoff JHughey DATE 5/05/2010 6/06/2010 5/13/2010 5/17/2010 5/17/2010 OFFICIAL RECORD COPY