ML121070633

Redacted - Yankee, Decommissioning Funding Assurance Status Report - 10CFR 50.75

ML121070633
Person / Time
Site:	Yankee Rowe
Issue date:	03/27/2012
From:	Pizzella C Yankee Atomic Electric Co
To:	Document Control Desk, Office of Nuclear Material Safety and Safeguards
References
BYR-2012-013
Download: ML121070633 (7)

Text

(.0 YXINKDEigE YANKEE ATOMIC ELECTRIC COMPANY 49 Yankee Road, Rowe ssachusetts 01367 March 27, 2012 BYR-2012-013 Docket No.50-029 Re: 10 CFR 50.75 U. S. Nuclear Regulatory Commission Attention: Document Control Desk Washington, DC 20555

Reference:

(a) License No. DPR-3 (Docket No.50-029)

(b) Letter: A. C. Kadak to USNRC; Permanent Cessation of Power Operations at the Yankee Nuclear Power Station, BYR-92-024, dated February 26, 1992 (c) Letter: USNRC to Yankee Atomic Power Company; Yankee Nuclear Power Station - Release of Land from Part 50 License, dated August 10, 2007 (d) USNRC Regulatory Issue Summary (RIS) 2001-07, REV.1 (e) Letter: The Yankee Companies to USNRC; Foreign Ownership Negation Action Plan and Decommissioning Funding Assurance, dated December 21, 2011.

Subject:

Decommissioning Funding Assurance Status Report - 10CFR 50.75 Gentlemen:

In reference (b) Yankee Atomic Electric Company (YAEC) informed the USNRC that the Board of Directors of YAEC had decided to permanently cease operations at the Yankee Rowe Plant and that fuel had been permanently removed from the reactor. In accordance with 1 OCFR 50.82(a)(2) the certifications in the letter modified the YAEC license to permanently withdraw YAEC's authority to operate the reactor. In 1993, YAEC commenced decommissioning the power plant. In Reference (c), the NRC amended the YAEC license, releasing most of the formerly licensed land for unrestricted use, shrinking the licensed land to the Independent Spent Fuel Storage Installation (ISFSI) only. Presently, YAEC is storing spent nuclear fuel and other high level waste on site until it is assumed to be removed by the DOE in 2020, through the final decommissioning of the ISFSI in 2022.

In accordance with the requirements of 10 CFR 50.75, direction provided by the NRC staff on March 5, 2008 and recent RIS 2001-07, Rev 1 regulatory clarification, YEAC hereby, submits its report on the status of decommissioning funding for the year ending December 31, 2011 for YAEC. 1 Attachment 1 provides the requested information.

This report is submitted in accordance with 10 CFR 50.75, which is applicable to power reactors licensed and decommissioned in accordance with Part 50. Apart from the ISFSI, radiological decommissioning of the Yankee Rowe power reactor and site has been completed. Although such information is included in this report, there are presently no requirements in 10 CFR 50.54(bb) for ongoing reports of funding for spent fuel management. - - ,.~ I P FH5J/?

In response to the NRC's concerns regarding decommissioning funding assurance for radiological decommissioning of the Yankee Companies' ISFSIs, and in accordance with the additional administrative controls described in Reference (e), YAEC has established a new account within its Qualified Nuclear Decommissioning Trust

("QNDT") entitled "ISFSI Radiological Decom". The cost of radiological decommissioning of the ISFSI as defined in 10 CFR Part 50 (or Part 72) is anticipated to be relatively small. YAEC's current Site-Specific Cost Estimate for ISFSI decommissioning includes the total cost for all decommissioning of the ISFSI, including costs associated with non-radiological demolition and site restoration and costs associated with license termination. This total has been transferred from existing accounts within the QNDT to the new account thereby segregating funds for decommissioning of the ISFSI from the larger balance of funds for ongoing spent fuel management held in the QNDT. Attachment 2 is a copy of the current ISFSI Radiological Decom Statement of Account from Bank of America, the current Trustee of YAEC's Decommissioning Trust. This Statement is being provided for information purposes and is not a requirement associated with this Funding Status Report.

If you should have any questions, please contact me at (860) 267-6426 x304.

Sincerely, Carla M. Pizzella, Treasur r Date - "NRC Decommissioning Funding Status Report" - "YAEC NDT Qualified Trust Statement of Account - ISFSI Radiological Decom cc: W. M. Dean, NRC Region I Administrator M. S. Ferdas, Chief, Decommissioning Branch, NRC, Region I J. Goshen, NRC Project Manager, Yankee Rowe Plant

BYR-2012-013 Attachment 1 NRC Decommissioning Funding Status Report March 2012

USNRC BYR-2012-013/Attachment 1/Page 1 Attachment 1 NRC Decommissioning Funding Status Report 2 Yankee Atomic - Yankee Rowe Plant (Status as of 12/31111)

1. The amount of decommissioning funds estimated to be required pursuant to 10 CFR 50.75 (b) and (c) $90.7 million3

2. The amount accumulated at the end of the calendaryear $55.1 million 4 preceding the date of the report for items included in 10 CFR 50.75 (e)(1)(i)

3. Schedule of the annualamounts remainingto be collected $11.8 million 5 Including amounts beyond those requiredin 10 CFR 50.75 (e) (1)(i)

1. Years to collect 3 years 2 YAEC is licensed under a 10 CFR Part 50 General License. Accordingly, YAEC reports the status of decommissioning funding with respect to the ISFSI under the reporting format of 10 CFR 50.75(t)(1) and (2). In that context, YAEC is also reporting the current status of funding related to the ongoing management of the spent fuel and other high level waste until transfer of title and possession thereof, to the DOE. Such information is part of spent fuel management planning pursuant to 10 CFR 50.54(bb) and is provided in this context to update the NRC.

3 Since the original power plant has been decommissioned and the license amended to reflect the current status of the facility, the only remaining decommissioning as defined by the NRC in 10 CFR Parts 50 and 72 concerns the decommissioning of the ISFSI once the spent fuel is removed. The Site-Specific Cost Estimate for future costs (spent fuel management and ISFSI decommissioning) beyond 2011 is $90.7 million (in 2011 dollars). This total includes the current estimate for spent fuel management costs (i.e., long-term ISFSI operations, ultimate fuel transfer for disposal by DOE) through 2022 ($80.5 million) and decommissioning the ISFSt ($10.2 million). The estimate for the ISFSI decommissioning includes funds required for radiological decommissioning of the ISFSI, as well as funds for non-radiological costs for activities such as site restoration and license termination.

4This accrued market value balance includes amounts in the Decommissioning Trust for all decommissioning costs including site restoration and long-term spent fuel storage as well as decommissioning of the ISFSI. Since the original power plant has been decommissioned and the license amended to reflect the current status, the only remaining decommissioning is decommissioning of the ISFSt (estimated at $10.2.million of the current market value balance) once the fuel and other high level waste is removed.

Those funds have been placed in a separate account within the QNDT.

5 YAEC ("Yankee") revised its annual decommissioning collections rates effective February 1, 2006 continuing through 2014, based on the Settlement Agreement filed at FERC on May 1, 2006 and accepted on July 31, 2006. On October 13, 2010, Yankee submitted its decommissioning cost estimate and schedule of decommissioning charges, ("2010 Rate Filing"), as it had committed to do in the 2006 Settlement. The 2010 Rate Filing demonstrated that, after escalating costs to 2010 dollars and adjusting for the fact that the costs of the first part of the waste storage included in the 2006 Estimate have already been incurred, the 2006 Estimate remains a reasonable projection of costs upon which the Company may rely in calculating the rates necessary to fund the NDT. The 2010 Rate Filing noted ongoing uncertainties regarding prospective damage awards obtained from litigation with the Department of Energy ("DOE"), offsets to Yankee's funding needs, the DOE's commitment to remove Yankee's nuclear waste, and the timing of these key events. In light of these unknowns, along with the fact that the 2006 Settlement committed Yankee to file another update of decommissioning costs and charges by 2014, Yankee proposed to maintain its current level of collections. On December 30, 2010, FERC issued an order accepting the 2010 Rate Filing and found that the 2010 Rate Filing completed Yankee's obligations under the 2006 Settlement, and granted Yankee's requested effective date of January 1, 2011.

USNRC BYR-2012-013/Attachment 1/Page 2

4. The assumptions used regardingescalation of the decommissioning cost estimate, rates of earningson decommissioning funds, and rates of other factors used in funding projections are:

Annual escalationrate 2.5%

Annual after-tax earnings rate on decommissioning trust funds: 4.4%

Other factors assumed None

5. Any contracts upon which the licensee is relying pursuant to 10 CFR 50.75(e)(1)(ii)(A)

YAEC is currently collecting funds through its power contracts and amendatory agreements under FERC regulation. The power contracts and the amendatory agreements specify the obligations of the purchasers for the costs of YAEC including, decommissioning costs. Such contracts have been filed with FERC.

6. Any modifications to a licensee's current method of providing financial assuranceoccurringsince the last submitted report. None

7. Any material changes to trust agreements. None

BYR-12-013 Attachment 2 YAEC NDT Qualified Trust Statement of Account - ISFSI Radiological Decom March 2012

Table Withheld Under 10 CFR 2.390