ML110900557

General Electric Company Parent - Guarantee of Funds for Decommissioning: Updated Letter from Chief Financial Officer to Demonstrate Financial Assurance

ML110900557
Person / Time
Site:	Vallecitos Nuclear Center, 07000754, 07001113, 07002872, 07200001, Vallecitos
Issue date:	03/18/2011
From:	Sherin K General Electric Co
To:	Office of Nuclear Material Safety and Safeguards, Office of Nuclear Reactor Regulation
References
Download: ML110900557 (4)

Text

GE 3135 Easton Turnpike Fairfield. CT 06828 USA March 18, 2011 U.S. Nuclear Regulatory Commission Director, Office of Nuclear Material Safety and Safeguards

• 11555 Rockville Pike Rockville, MD 20852 U.S. Nuclear Regulatory Commission Director, Office of Nuclear Reactor Regulation 11555 Rockville Pike Rockville, MD 20852

Subject:

General Electric Company Parent - Guarantee of Funds for Decommissioning:

Updated Letter from Chief Financial Officer to Demonstrate Financial Assurance I am the chief financial officer of the General Electric Company, 1 River Road, Schenectady, N.Y. 12345, a corporation. This letter provides an update of this firm's financial assurance of decommissioning funding for certain licenses, as specified in 10 CFR Parts 50, 70 and 72.

This firm guarantees, through the parent company guarantee submitted herewith to demonstrate compliance under 10 CFR Parts 50, 70 and 72, the decommissioning of certain facilities owned or operated by subsidiaries of this firm. I hereby certify that General Electric Company is currently a going concern and that it possesses a positive tangible net worth in the amount of $44,490,000,000. The current cost estimates or certified amounts for decommissioning, so guaranteed, are shown in Attachment 1.

The General Electric Company is required to file a Form 10-K with the U.S. Securities and Exchange Commission for the latest fiscal year. The fiscal year of the General Electric Company ends on December 31. The figures on the Financial Test II (Attachment 2) that are marked with an asterisk are derived from the General Electric Company's independently Corporote En-ronmentaP Proaroms

U.S. NRC March 18, 2010 Page 2 of 2 audited, year-end financial statements and footnotes for the latest completed fiscal year, ended December 31, 2010. A copy of the most recent financial statement is enclosed.

I hereby certify that the content of this letter and attachments are true and correct to the best of my knowledge.

Keith S. Sherin Vice Chairman and Chief Financial Officer March 18, 2011 Attachments:

1. List of Licensed Facilities

2. Financial Test II

3. Parent-Company Guarantee

4. Special Auditors' Report

5. General Electric Co. Financial Statements

U.S. NRC March 18, 2010 Attachment 1 List of Licensed Facilities Name of Facility License Location of Current Cost Number Facility Estimate Global Nuclear Fuel- SNM-1097 3901 Castle Hayne Rd. $175,800,000 Americas, LLC Wilmington, NC 28401 Wilmington Fuel Manufacturing Facility GE Reuter Stokes, Inc. SNM-1826 8499 Darrow Road $ 1,700,000 GE Reuter Stokes Facility Twinsburg, OH 44087 GE-Hitachi Nuclear Energy DPR-1 Vallecitos Nuclear $ 9,200,000 Americas, LLC Center Vallecitos Nuclear 6705 Vallecitos Rd.

Center Pleasanton, CA 94566 GE-Hitachi Nuclear Energy R-33 Vallecitos Nuclear $ 4,100,000 Americas, LLC Center Vallecitos Nuclear 6705 Vallecitos Rd.

Center Pleasanton, CA 94566 GE-Hitachi Nuclear Energy TR-1 Vallecitos Nuclear $ 17,700,000 Americas, LLC Center Vallecitos Nuclear 6705 Vallecitos Rd.

Center Pleasanton, CA 94566 GE-Hitachi Nuclear Energy DR-10 Vallecitos Nuclear $ 13,000,000 Americas, LLC Center Vallecitos Nuclear 6705 Vallecitos Rd.

Center Pleasanton, CA 94566 GE-Hitachi Nuclear Energy SNM-960 Vallecitos Nuclear $ 37,400,000 Americas, LLC Center Vallecitos Nuclear 6705 Vallecitos Rd.

Center Pleasanton, CA 94566 GE-Hitachi Nuclear Energy SNM-2500 Morris Operation $ 79,600,000 Americas, LLC 7555 East Collins Rd.

Morris Operation Morris, IL 6e0450 Total $338,500,000

U.S. NRC March 18, 2010 Attachment 2 FINANCIAL TEST II (10 CFR Part 30 App. A Section II.A.2)

GENERAL ELECTRIC COMPANY PARENT-COMPANY GUARANTEE OF DECOMMISSIONING FUNDING FOR GLOBAL NUCLEAR FUEL (AMERICA), LLC, GE-Hitachi Nuclear Energy Americas LLC and GE REUTER STOKES, INC.

Current decommissioning cost estimates or certified amounts: (Dollars in Thousands)

I. Decommissioning amounts covered by this parent company guarantee $ 338,500

2. All decommissioning amounts covered by other NRC or Agreement State parent company guarantees or self-guarantees $ 45,610

3. All amounts covered by parent company guarantees, self-guarantees, or financial tests of other Federal or State agencies (e.g., EPA) $ 123,528 -a) a) Total Company Financial Assurance net of NRC TOTAL $ 507,638

2. Current bond rating of most recent unsecured issuance of this firm Rating: Aa2 Name of rating service: Moody's

3. Date of issuance of bond: 12/06/07

4. Date of maturity of bond: 12/06/17

• 5. Tangible net worth** (if any portion of estimates for decommissioning is included in total liabilities on your firm's financial statements, you may add the amount of that portion to this line) $ 44,490,000

• 6. Total assets in United States (required only if less than 90 percent of finn's assets are located in the United States) $ 387,312,000 Yes No

7. Is line 5 at least $10 million? X

8. Is line 5 at least 6 times line I? x

9. Are at least 90 percent of firm's assets located in the United States? If not, complete line 10. x

10. Is line 6 at least 6 times line I? x Yes No I1. Is the rating specified on line 2 BBB or better (if issued by Standard & Poor's) or Baa or better (if issued by Moody's)? x

• Denotes figures derived from financial statements.

• • Tangible net worth is defined as net worth minus intangible assets.