ML113540721
| ML113540721 | |
| Person / Time | |
|---|---|
| Site: | Limerick  |
| Issue date: | 01/11/2012 |
| From: | Peter Bamford Plant Licensing Branch 1 |
| To: | Pacilio M Exelon Nuclear, Exelon Nuclear Generation Corp |
| Bamford, Peter J., NRR/DORL 415-2833 | |
| References | |
| TAC ME5494 | |
| Download: ML113540721 (4) | |
Text
UNITED STATES NUCLEAR REGULATORY COMMISSION WASHINGTON, D.C. 20555-0001 January 11, 2012 Mr. Michael J. Pacilio 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 (TAC NO. ME5497)
Dear Mr. Pacilio:
By letter dated March 31,2011 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML110980080), Exelon Generation Company, LLC (Exelon, the licensee) submitted to the U.S. Nuclear Regulatory Commission (NRC) the 2011 Decommissioning Funding Status (DFS) report for Limerick Generating Station (LGS), Unit 1, as required under Title 10 of the Code of Federal Regulations (10 CFR) Section 50.75, "Reporting and recordkeeping for decommissioning planning." On July 27, 2011 (ADAMS Accession No. ML112092312), Exelon submitted supplemental information in response to a request for additional information from the NRC staff.
As described in SECY-2011-0149, "Summary Findings Resulting from the Staff Review of the 2010 Decommissioning Funding Status Reports for Operating Power Reactor Licensees,"
(ADAMS Accession No. ML112620046), the NRC staff reviewed the decommissioning funding status (DFS) reports for all operating power reactor licenses, including LGS, Unit 1. In that report, the NRC concluded, in part, that Exelon has not provided the full amount of decommissioning funding assurance as of December 31,2010, for LGS, Unit 1. Also, the report concludes that Exelon has not provided a resolution for the LGS, Unit 1 shortfall in the licensee's 2010 DFS report.
Based on the considerations of 10 CFR Section 50.75(e)(2), the NRC requests updated information regarding Exelon's plans to address the shortfall of the LGS, Unit 1 decommissioning trust fund, as detailed in the enclosure to this letter. The question in the enclosure was sent in draft form to Mr. Patrick Simpson and Mr. David Helker of your staff via electronic transmission on December 20, 2011. The draft request for additional information was sent to ensure that the question was understandable, the regulatory basis was clear and to determine if the information was previously docketed. The question was discussed with your staff in a teleconference on January 5, 2012, and it was agreed that you would provide a response by February 6,2012.
M. Pacilio
-2 Please contact me at 301-415-2833, if you have any questions.
Sincerely,
~~~
Peter Bamford, Project Manager Plant Licensing Branch 1-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket No. 50-352
Enclosure:
As stated cc w/encl: Distribution via Listserv
REQUEST FOR ADDITIONAL INFORMATION LIMERICK GENERATING STATION. UNIT 1 DECOMMISSIONING FINANCIAL ASSURANCE PLANS 2011 BIENNIAL DECOMMISSIONING REVIEW DOCKET NO. 50-352 By letter dated March 31,2011 (Agencywide Documents Access and Management System (ADAMS) Accession No. ML110980080), Exelon Generation Company, LLC (Exelon, the licensee) submitted to the U.S. Nuclear Regulatory Commission (NRC) the 2011 Decommissioning Funding Status report for Limerick Generating Station (LGS), Unit 1, as required under Title 10 of the Code of Federal Regulations (10 CFR) Section 50.75, "Reporting and recordkeeping for decommissioning planning." On July 27, 2011 (ADAMS Accession No. ML112092312), Exelon submitted supplemental information in response to a requestfor additional information from the NRC staff regarding the status of the decommissioning funds.
The NRC has reviewed and analyzed the decommissioning cost estimate derived from the regulatory formula contained in 10 CFR 50.75(c), and the reported amount of the licensee's decommissioning trust fund, as of December 31,2010, for LGS, Unit 1, including earnings assumptions. The NRC staff has determined that the minimum amount of decommissioning funding assurance required by the provisions of 10 CFR 50.75(c), as of December 31,2010, is
$628,251,763 for LGS, Unit 1. Based on the reported decommissioning trust balance, together with earnings credits specified under NRC regulations, the NRC has also determined that as of December 31,2010, Exelon has provided a total amount of decommissioning funding assurance in the amount of $528,210,057 for LGS, Unit 1. Therefore, the amount of decommissioning financial assurance, as of December 31,2010, is less than the amount required by NRC's regulations.
LGS, Unit 1 also failed to provide financial assurance in an amount that was equal to or greater than the requirements of NRC regulations as of December 31,2008. By letter dated March 31, 2009 (ADAMS Accession No. ML090900463), Exelon stated that LGS did not meet the funding requirements of 10 CFR 50.75 (b) and (c). Further, in that letter Exelon stated:
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. 1 By letter dated June 24,2010 (ADAMS Accession No. ML101790022) Exelon stated that the next Nuclear Decommissioning Cost Adjustment calculation will be performed and submitted to the PaPUC in the second half of 2012, to take effect January 1, 2013. The submittal dated March 31, 2011, did not provide any statement recognizing the continuing shortfall at LGS, Unit 1, or re-confirm the schedule for making the needed adjustments to meet the financial assurance requirement. Therefore, the NRC staff requests that Exelon provide its most current plan to meet the NRC's financial assurance requirements for LGS, Unit 1, including the schedule when actions will be taken.
- 1.
The licensee's March 31, 2011, letter, Attachment 11, note (b), contains a similar general statement to this quoted passage regarding any needed adjustments and PaPUC Electric Tariff No.3.
M. Pacilio
-2 Please contact me at 301-415-2833, if you have any questions.
Sincerely, Ira/
Peter Bamford, Project Manager Plant Licensing Branch 1-2 Division of Operating Reactor Licensing Office of Nuclear Reactor Regulation Docket No. 50-352
Enclosure:
As stated cc w/encl: Distribution via Listserv DISTRIBUTION:
PUBLIC RidsOgcRp Resource LPLI-2 RtF RidsAcrsAcnw_MailCTR Resource RidsNrrPfib Resource ASzabo, NRR RidsRgn1 MailCenter Resource RidsNrrDorlDpr Resource RidsNrrDorlLpl1-2 Resouce RidsNrrPMLimerick Resource RidsNrrLAABaxter Resource ADAMS Accession Number: ML113540721 OFFICE LPLI-2/PM LPLI-2/LA NRR/PFIB LPL1-2/BC LPLI-2/PM
- NAME PBamford ABaxter CRegan HChernotf PBamford
. DATE 1/9/12 1/6/12 1/9/12 1/11/12 1/11/12 OFFICIAL RECORD COpy