ML101380222
| ML101380222 | |
| Person / Time | |
|---|---|
| Site: | University of Utah |
| Issue date: | 05/13/2010 |
| From: | Jevremovic T Univ of Utah |
| To: | Document Control Desk, Office of Nuclear Reactor Regulation |
| References | |
| Download: ML101380222 (7) | |
Text
N n50 E USalt Lake City, S Campus Central UT 84112 Dr. MEB 2298 Phone: 801.587.969 URL: http://www.nuclear.utah.edu United States Nuclear Regulatory Commission Docket Control Desk Mail Stop 0 12-G13 One White Flint North 11555 Rockville Pike Rockville, Maryland 20852-2738 )
May 13, 2010
Subject:
Updated answers to the NRC RAIs regardingfinancingand decommissioning of the UUTR This letter is sent in respond to the additional questions we have received on the financial statements and cost development for the UUTR decommissioning. The enclosed documents are:
- Answers to the questions [clarification on CPI used for adjusting the dollar value in our financial estimates and numerical example; and clarification on operating budget cost for the UUTR]
- Updated letter for the UUTR total decommissioning cost signed by the President of The University of Utah Sincerely, Tatjana Jevreniovic, Ph.D.
Energy Solutions Presidential Endowed Chair Professor Director, University of Utah Nuclear Engineering Program Professor, Civil and Environmental Engineering Professor, Chemical Engineering 2298 MEB, 50 South Central Drive University of Utah Salt Lake City, UT 84112 Phone: 801.587.9696 E-mail: Tatiana.Jevremovic(utah.edu URL: http://www.nuclear.utah.edu/nep.html State of Utah County of Salt Lake Subscribed and sworn to before me on this day 13th day of May, in the year 2010 by Tatjana Jevremovic.
No0t Pric Seal: Notary P*uC I C C ELINE. L UEUA NROWu1
- 5178184 oMY islf EXOMrS 16i
- State of Utah aml J nowmImlml 0 0 It
N50 S Campus Central Dr. MEB 2298 Salt Lake City, UT 84112 Phone: 801.587.969 URL: http://www.nuclear.utah.edu CC.
Dr. Cynthia Furse Associate Vice President for Research University of Utah 201 President's Circle, Room 210 Salt Lake City, Utah 84112 801/581-7236 cfurse(iece.utah.edu Dr. Richard Brown Dean, College of Engineering Warnock Engineering Building 72 Central Camus Drive, Room 1650 Salt Lake City, UT 84112 801/585-7498 browngcoe.utah.edu Dr. Dong-Ok Choe Research Assistant Professor Center for Nuclear Engineering Program 50 Central Campus Drive, Room 1205 Salt Lake City, UT 84112 801/581-4188 choe(bnuclear.utah.edu
Question:
What CPI is used for adjusting value of dollar and provide a numerical example.
Answer:
Definition:
The CPI used in our calculations is obtained from Bureau of Labor Statistics (BLS)
(www.bls.gov/cpi). On their website, the CPI is defined as: "The Consumer Price Index (CPI) is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services." This index value has been calculated since 1913 and for the current year, the index for the last month is used.
Numerical example:
The dollar values are updated based on CPI from BLS are used to take into account the inflation over the years of life of the reactor. These inflation adjusted factors are provided in Table 1.
Table 1 Inflation adjusted factors from 1981 to 2010 obtained from Bureau of Labor Statistics website.
Year Range Adjusted Factor (Based on CPI) 1981-1985 1.18 1985-1990 1.21 1990-1995 1.17 1995-2000 1.13 2000-2005 1.13 2005-2010 1.11 As an example, equivalent of 25,000$ of year 1981 in year 2000 can be calculated as follows:
1$ (1981) x 1.18 x 1.21 x 1.17 x 1.13 = 1.89$ (2000) 25,000$ x 1.89 = 47,250$
Note: all the inflation adjusted factors are rounded to two significant digits.
Question:
Under the operating budget for the University of Utah TRIGA reactor, the cost of operation for FY2012 and FY2016 in the text is not consistent with the table.
Answer:
The cost of operation reported in the table is the accurate cost. Therefore, the cost of operation for FY2012 is 140,436.00$ and the same cost for FY2016 is 158,062.00$.
THEU UNIVERSITY OF UTAH Office of the President 201 Presidents Circle, Room 203 Salt Lake City, Utah 84112-9008 (801) 581-5701 FAX (801) 581-6892 May 7, 2010 Mr. Dane Finerfrock, Director Division of Radiation Control 168 North 1950 West P.O. Box 144850 Salt Lake City, UT 84114-4850 RE: STATEMENT OF INTENT
Dear Mr. Finerfrock:
I am the President of the University of Utah, a body politic and corporate of the State of Utah. As President of the University of Utah, I am authorized to request, through the University of Utah Board of Trustees and the Utah State Board of Regents, funding from the Utah State Legislature for decommissioning activities associated with operations authorized by the Utah Division of Radiation Control Broadscope License UT # 1800001 (the "License"). This authority is established by the laws of the State of Utah, including Utah Code Ann. Sections 53B-7-101 et seq. and 63A-5-103 et seq. and the Utah State Board of Regents Policy R710. Within this authority, I intend to request that funds be made available when necessary in the amount of
$5,957,465, or other appropriate amount, as deemed necessary to decommission the University of Utah facilities, as defined in the License. I intend to request and obtain these funds sufficiently in advance of decommissioning to prevent delay of required activities.
A copy of the minutes of Special Meeting, Utah State Board of Regents, University of Utah, April 29, 2004, appointing me as President of the University of Utah is attached as evidence that I am authorized to represent the University of Utah in this transaction.
Sincerely yours, Michael K. Young MKY/lm
Attachment:
As stated above cc: Thomas N. Parks, Vice President for Research
MINUTES OF SPECIAL iMEETING UTAH STATE BOARD OF REGENTS UNIVERSITY OF UTAH April 29, 2004 Regents Present Regents Excused Nolan E. Karras, Chair Jerry C.Atkin E. George Mantes, Vice Chair Kim R. Burningham Linnea S. Barney Charles E. Johnson Daryl C. Barrett David L.Maher William Edwards David J. Grant James S. Jardine Michael R. Jensen David J. Jordan Jed H.Pitcher Sara V.Sinclair Marion 0. Snow Maria Sweeten Office of the Commissioner Richard E. Kendell, Commissioner of Higher Education David L.Buhler, Associate Commissioner for Public Affairs Joyce Cottrell, Executive Secretary Mark H. Spencer, Associate Commissioner for Finance and Facilities Representatives of the media and many members of the University of Utah community were also present, including members of the Board of Trustees, Presidential Search Committee, faculty, staff and community representatives.
Chair Nolan E. Karras called to order a special meeting of the Board of Regents at 4:25 p.m. He welcomed everyone and announced that the Board had spent the day interviewing candidates for the presidency of the University of Utah. Chair Karras acknowledged the presence of members of the University of Utah Board of Trustees, faculty, staff and the entire University community. He stated that the purpose of this meeting was to select the next President of the University of Utah, the state's flagship university. This is one of the state's most visible positions, and selecting presidents is the Regents' most important responsibility.
Chair Karras said the search process for this presidency had been modified somewhat from past searches. He thanked Commissioner Kendell and expressed the Board's appreciation for his assistance. He also thanked Regent Jardine and the Presidential Search Committee for their excellent work. Chair Karras expressed his appreciation to former President Bernie Machen for leaving the University inbetter condition than he found it.One reason the University of Utah is such a great institution is because of the people Bernie chose to fill key leadership positions. He acknowledged Senior Vice Presidents A.Lorris Betz and David W.Pershing and expressed the Regents' appreciation to them for their leadership. Drs. Betz and Pershing received a standing ovation from everyone inattendance. All of the candidates interviewed indicated that they recognized the high quality of the institution. Chair Karras also thanked the Regents for the time they spent inthis important process.
Regent Jardine said this had been his third presidential search for the University of Utah and the sixth search committee on which he has served. He asked the members of the Presidential Search Committee to stand and be recognized. He commended them for their cooperative spirit and camaraderie, which surpassed that of any other committee on which he had served.
Under the leadership of Commissioner Kendell, the Regents experimented with some new procedures for this search, which worked well because of the good faith and the shared goals of the University community.
He praised the participation by members of the senior leadership and said the guidance they had given the committee on the candidates was invaluable. He also credited Commissioner Kendell for his excellent help in this process.
Regent Jardine said was very sad that all three great candidates could not be chosen, because he felt that he was losing two very good friends. The Regents realized that all three finalists were eminently qualified and able to lead the institution, and they deliberated carefully to best meet the needs of the University.
Regent Jardine moved that the Board of Regents name Michael K.Young as the next President of the University of Utah. The motion was seconded by Vice Chair Mantes. Voting was unanimous.
Commissioner Kendell escorted President-designate Young and his wife, Suzan, into the room and introduced them to the University community. Chair Karras asked President Young to say a few words and to introduce his wife, President Young said he was happy to come back to Utah inthis way. Since first meeting Regent Jim Jardine at the Harvard Law School, he has had great respect for this institution. He thanked the Regents for entrusting him with this responsibility, which isthe opportunity of a lifetime. He commended the leadership team at the University for their knowledge, commitment and capacity for cooperation. Inhis entire career inhigher education, he has never encountered this level of commitment to excellence.
Mrs. Young said she was excited to be here and thrilled to be part of the University of Utah team. She originally hails from Orem and still has family inthe area. She thanked everyone for their support.
Chair Karras invited Dr. Lorris Betz and Dr. Dave Pershing to join the Youngs and led the applause for the University's great management team. He thanked President and Mrs. Young for their willingness to serve in this strenuous assignment.
The meeting was adjourned at 5:45 p.m.
Joyce Cottrell CPS, Executive Secretary Date Approved