ML11136A018

(Fnp) - Request for Additional Information on Decommissioning Funding Status Report

ML11136A018
Person / Time
Site:	Farley
Issue date:	06/15/2011
From:	Martin R Plant Licensing Branch II
To:	Ajluni M Southern Nuclear Operating Co
Martin R
References
Download: ML11136A018 (4)

Text

UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555*0001 June 15, 2011 M. J. Ajluni Nuclear Licensing Director Southern Nuclear Operating Company, Inc.

40 Inverness Center Parkway Post Office Box 1295, Bin - 038 Birmingham, AL 35201-1295

SUBJECT:

JOSEPH M. FARLEY NUCLEAR PLANT, UNITS 1 AND 2 - REQUEST FOR ADDITIONAL INFORMATION ON DECOMMISSIONING FUNDING STATUS REPORT

Dear Mr. Ajluni:

By letter dated March 29, 2011 (Agencywide Documents Access and Management System, Accession No. ML110890338), Southern Nuclear Operating Company, Inc. submitted the Decommissioning Funding Status Report for the Joseph M. Farley Nuclear Plant, Units 1 and 2.

We request that additional information be provided, as discussed in the enclosure.

We request that a response be provided within 30 days of the date of this letter.

Sincerely,

).( u..e~)I?L~;;Z~7V Robert E. Martin, Senior Project Manager Plant Licensing Branch 11-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-348 and 50-364

Enclosure:

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

REQUEST FOR ADDITIONAL INFORMATION BY THE OFFICE OF NUCLEAR REACTOR REGULATION 2011 DECOMMISSIONING FUNDING STATUS REPORT FOR SOUTHERN NUCLEAR OPERATING COMPANY The requests for additional information (RAls) provided are in response to Southem Nuclear Operating Company's (SNC) 2011 Decommissioning Funding Status (DFS) Report. On March 29, 2011, SNC, on behalf of Alabama Power Company (APC), submitted to the Nuclear Regulatory Commission (NRC) the 2011 DFS Report for Joseph M. Farley Nuclear Plant, Units 1 and 2 (Farley 1 and 2), as required under Title 10 of the Code of Federal Regulations (10 CFR) Part SO, Section SO.7S(f)(1) (Agencywide Documents Access and Management System Accession No. ML110890338). SNC should provide a response within 30 days from the date of this letter.

RAI #1: Minimum DFA calculation:

Provide the basis for the use of the December 2009 values for the labor and energy factors used in calculating the minimum requirement for decommissioning financial assurance. If necessary, provide the values in 2010 dollars or provide a corrected submittal for that part of the DFS report.

The March 29, 2011, the Farley 1 and 2 DFS reports contain amounts of decommissioning funds estimated to be required under 10 CFR SO.7S(b) and (c) that are less than the amounts calculated by the NRC staff.

According to 10 CFR SO.7S(f)(1}, the amount provided in the DFS report should be "the amount of decommissioning funds estimated to be required under 10 CFR SO.7S(b) and (c)." The formulas for the factors used by the NRC staff can be found using NUREG-1307, Rev. 14, "Report on Waste Burial Charges: Changes in Decommissioning Waste Disposal Costs at Low Level Waste Burial Facilities." For example, the calculations for the Labor and Energy Adjustment Factors can be found on pages 7 and 8 of NUREG-1307, Rev. 14.

RAI #2: Citation for real rate of returns:

Provide the citation (e.g., an Order by the rate-regulatory authority) by the regulatory entity that allows for the for the assumptions used regarding rates of escalation in decommissioning costs, rate of earnings on decommissioning funds and rates of other factors assumed in your DFS report.

On March 29, 2011, Southern Nuclear reported the following for Farley 1:

4.S% rate of escalation in decommissioning costs; 7.0% rates of earnings on decommissioning funds.

On March 29, 2011, Southern Nuclear reported the following for Farley 2:

4.S% rate of escalation in decommissioning costs; Enclosure

-2 7.0% rates of earnings on decommissioning funds.

As stated in 10 CFR SO.7S{f){1),

The information in this [DFS] report must include [. .J 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 ....

RAI #3: Amounts Accumulated Provide the after-tax amount of funds accumulated through December 31,2010.

Southern Nuclear did not provide the after-tax amount of funds accumulated through December 31,2010.

The provisions of 10 CFR SO.7S(f)(1) and (2) require the licensee to report the amount of funds accumulated to the end of the calendar year preceding the report.

June 15, 2011 M. J. Ajluni Nuclear Licensing Director Southern Nuclear Operating Company, Inc.

40 Inverness Center Parkway Post Office Box 1295, Bin - 038 Birmingham, AL 35201-1295

SUBJECT:

JOSEPH M. FARLEY NUCLEAR PLANT, UNITS 1 AND 2-REQUEST FOR ADDITIONAL INFORMATION ON DECOMMISSIONING FUNDING STATUS REPORT

Dear Mr. Ajluni:

By letter dated March 29, 2011 (Agencywide Documents Access and Management System, Accession No. ML110890338), Southern Nuclear Operating Company, Inc. submitted the Decommissioning Funding Status Report for the Joseph M. Farley Nuclear Plant, Units 1 and 2.

We request that additional information be provided, as discussed in the enclosure.

We request that a response be provided within 30 days of the date of this letter.

Sincerely, IRA!

Robert E. Martin, Senior Project Manager Plant Licensing Branch 11-1 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket Nos. 50-348 and 50-364

Enclosure:

Request for Additional Information cc w/encl: Distribution via Listserv DISTRIBUTION PUBLIC LPL2-1 RtF RidsNrrDorlLpl2-1 Resource RidsAcrsAcnw_MailCTR Resource RidsNrrDoriDpr Resource RidsRgn2MailCenter Resource RidsNrrLAMOBrien Resource RidsOgcRp Resoure RidsNrrPMFarley Resource RidsNrrDprPfib Resource CRegan, NRR LKosmas, NRR ADAMS Accession No.: ML11136A018 *b memo dated 5105/11 OFFICE DORULPL2-1/PM DORULPL2-11lA DPRIPFIB/BC LO DORULPL2-lIBC DORULPL2-1/PM NAME RMartin CRegan" GKulesa RMartin DATE 05/26/11 05/05/11 06/15/11 06/15/11 OFFICIAL RECORD COpy